SPARTAN(REGISTERED TRADEMARK)
CALIFORNIA MUNICIPAL
FUNDS
AND
FIDELITY
CALIFORNIA MUNICIPAL
MONEY MARKET FUND
SEMIANNUAL REPORT
AUGUST 31, 1999
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES
SPARTAN CALIFORNIA MUNICIPAL
INCOME FUND
4 PERFORMANCE
7 FUND TALK: THE MANAGER'S
OVERVIEW
10 INVESTMENT CHANGES
11 INVESTMENTS
31 FINANCIAL STATEMENTS
SPARTAN CALIFORNIA MUNICIPAL
MONEY MARKET FUND
35 PERFORMANCE
37 FUND TALK: THE MANAGER'S
OVERVIEW
39 INVESTMENT CHANGES
40 INVESTMENTS
49 FINANCIAL STATEMENTS
FIDELITY CALIFORNIA MUNICIPAL
MONEY MARKET FUND
53 PERFORMANCE
55 FUND TALK: THE MANAGER'S
OVERVIEW
57 INVESTMENT CHANGES
58 INVESTMENTS
69 FINANCIAL STATEMENTS
NOTES 73 NOTES TO THE FINANCIAL
STATEMENTS
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Other third party marks appearing herein are the property of their
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All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
In late August, just days after making what many market observers felt
would be the final interest-rate hike of 1999, Federal Reserve Board
Chairman Alan Greenspan re-ignited fears of further increases, calling
the continued rise of stocks "inexplicable." He also indicated that
stock movements would play a larger role in future monetary policy
deliberations. In response, equity and bond markets retreated from
solid gains earned earlier in the month.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while a short-term bond fund could be
the right choice if you need your money in one or two years.
If your time horizon is less than a year, you might want to consider
moving some of your bond investment into a money market fund. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain fund expenses, the past 5 year and past 10 year
total returns would have been lower.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN CA MUNICIPAL INCOME -2.47% 0.19% 36.75% 95.88%
LB California Municipal Bond -2.50% 0.40% 38.56% n/a
California Municipal Debt -3.52% -1.49% 32.05% 90.77%
Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. You can compare the fund's returns to the performance
of the Lehman Brothers California Municipal Bond Index - a market
value-weighted index of California investment-grade municipal bonds
with maturities of at least one year or more. To measure how the
fund's performance stacked up against its peers, you can compare it to
the California municipal debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past six month average represents a peer group of 109 mutual
funds. These benchmarks include reinvested dividends and capital
gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN CA MUNICIPAL INCOME 0.19% 6.46% 6.95%
LB California Municipal Bond 0.40% 6.74% n/a
California Municipal Debt -1.49% 5.71% 6.65%
Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Spartan Municipal Income LB Municipal Bond
00037 LB015
1988/11/30 10000.00 10000.00
1988/12/31 10192.72 10102.30
1989/01/31 10336.51 10311.22
1989/02/28 10273.98 10193.56
1989/03/31 10295.15 10169.20
1989/04/30 10627.35 10410.62
1989/05/31 10852.16 10626.85
1989/06/30 10957.61 10771.16
1989/07/31 11037.47 10917.76
1989/08/31 10988.51 10810.87
1989/09/30 10941.60 10778.65
1989/10/31 11056.17 10910.48
1989/11/30 11260.37 11101.41
1989/12/31 11354.00 11192.22
1990/01/31 11234.36 11139.28
1990/02/28 11381.45 11238.42
1990/03/31 11394.33 11241.79
1990/04/30 11189.37 11160.40
1990/05/31 11498.11 11404.03
1990/06/30 11620.90 11504.27
1990/07/31 11800.80 11673.39
1990/08/31 11678.05 11503.89
1990/09/30 11766.15 11510.45
1990/10/31 11922.54 11719.25
1990/11/30 12263.39 11954.92
1990/12/31 12316.14 12006.92
1991/01/31 12476.55 12168.06
1991/02/28 12554.65 12273.92
1991/03/31 12595.04 12278.34
1991/04/30 12767.36 12441.64
1991/05/31 12879.81 12552.25
1991/06/30 12880.49 12539.82
1991/07/31 13067.61 12692.55
1991/08/31 13183.05 12859.72
1991/09/30 13288.41 13027.15
1991/10/31 13413.36 13144.39
1991/11/30 13442.63 13181.07
1991/12/31 13569.51 13463.93
1992/01/31 13708.80 13494.63
1992/02/29 13736.86 13498.95
1992/03/31 13750.32 13503.94
1992/04/30 13881.80 13624.13
1992/05/31 14015.03 13784.48
1992/06/30 14209.36 14015.79
1992/07/31 14573.91 14435.98
1992/08/31 14379.94 14295.23
1992/09/30 14418.54 14388.72
1992/10/31 14178.47 14247.28
1992/11/30 14546.42 14502.45
1992/12/31 14703.93 14650.52
1993/01/31 14909.71 14820.90
1993/02/28 15458.43 15356.98
1993/03/31 15346.44 15194.65
1993/04/30 15492.42 15347.97
1993/05/31 15582.33 15434.22
1993/06/30 15811.63 15691.82
1993/07/31 15817.13 15712.38
1993/08/31 16160.82 16039.51
1993/09/30 16394.55 16222.20
1993/10/31 16411.82 16253.51
1993/11/30 16279.71 16110.31
1993/12/31 16631.66 16450.40
1994/01/31 16814.57 16638.26
1994/02/28 16386.25 16207.33
1994/03/31 15628.07 15547.37
1994/04/30 15709.27 15679.21
1994/05/31 15807.18 15815.15
1994/06/30 15717.71 15718.52
1994/07/31 16014.34 16006.64
1994/08/31 16072.51 16062.02
1994/09/30 15833.74 15826.23
1994/10/31 15503.00 15545.16
1994/11/30 15019.31 15264.10
1994/12/31 15392.73 15600.07
1995/01/31 15917.46 16045.92
1995/02/28 16378.11 16512.53
1995/03/31 16421.02 16702.26
1995/04/30 16429.24 16721.97
1995/05/31 16941.66 17255.57
1995/06/30 16680.93 17105.44
1995/07/31 16801.67 17267.60
1995/08/31 17007.42 17486.56
1995/09/30 17138.64 17597.25
1995/10/31 17385.10 17853.11
1995/11/30 17714.57 18149.29
1995/12/31 17883.12 18323.71
1996/01/31 18031.21 18462.05
1996/02/29 17956.42 18337.43
1996/03/31 17726.40 18103.08
1996/04/30 17654.26 18051.85
1996/05/31 17658.93 18044.63
1996/06/30 17867.82 18241.13
1996/07/31 18036.04 18407.13
1996/08/31 18040.63 18402.71
1996/09/30 18252.30 18660.35
1996/10/31 18467.43 18871.40
1996/11/30 18846.14 19216.74
1996/12/31 18767.37 19136.03
1997/01/31 18785.67 19172.20
1997/02/28 18948.47 19348.20
1997/03/31 18703.02 19090.29
1997/04/30 18857.91 19250.08
1997/05/31 19124.75 19539.60
1997/06/30 19359.04 19747.69
1997/07/31 19909.92 20294.71
1997/08/31 19707.55 20104.54
1997/09/30 19944.29 20343.18
1997/10/31 20058.05 20473.99
1997/11/30 20168.93 20594.38
1997/12/31 20498.78 20894.85
1998/01/31 20727.93 21110.49
1998/02/28 20705.21 21116.82
1998/03/31 20707.69 21135.40
1998/04/30 20592.79 21040.08
1998/05/31 20907.67 21373.14
1998/06/30 20989.17 21457.36
1998/07/31 21040.27 21511.21
1998/08/31 21357.96 21843.56
1998/09/30 21641.25 22115.73
1998/10/31 21625.41 22115.29
1998/11/30 21690.54 22192.91
IMATRL PRASUN SHR__CHT 19981130 19981210 122919 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan California Municipal Income Fund on August 31,
1989. As the chart shows, by August 31, 1999, the value of the
investment would have grown to $19,588 - a 95.88% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index - a market value-weighted index of
investment-grade municipal bonds with maturities of one year or more -
did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 would have grown to $20,306 - a 103.06%
increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the share
price, return and yield of a
fund that invests in bonds will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TOTAL RETURN COMPONENTS
SIX MONTHS ENDED AUGUST 31, YEARS ENDED FEBRUARY 28, YEAR ENDED FEBRUARY 29,
1999 1999 1998 1997 1996
Dividend returns 2.20% 4.73% 5.23% 5.37% 5.86%
Capital returns -4.67% 1.27% 4.66% 0.79% 5.39%
Total returns -2.47% 6.00% 9.89% 6.16% 11.25%
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
TOTAL RETURN COMPONENTS
YEAR ENDED FEBRUARY 28,
1995
Dividend returns 5.96%
Capital returns -6.87%
Total returns -0.91%
</TABLE>
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital return reflects both the amount paid by the fund to
shareholders as capital gain distributions and changes in the fund's
share price. Both returns assume the dividends or capital gains, if
any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED AUGUST 31, 1999 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 4.66(cents) 27.68(cents) 55.35(cents)
Annualized dividend rate 4.65% 4.52% 4.50%
30-day annualized yield 4.67% - -
30-day annualized 8.04% - -
tax-equivalent yield
DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$11.81 over the past one month, $12.14 over the past six months and
$12.31 over the past one year, you can compare the fund's income over
these three periods. The 30-day annualized YIELD is a standard formula
for all bond funds based on the yields of the bonds in the fund,
averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It
also helps you compare funds from different companies on an equal
basis. The tax-equivalent yield shows what you would have to earn on a
taxable investment to equal the fund's tax-free yield, if you're in
the 41.95% combined effective 1999 federal and state income tax
bracket, but does not reflect the payment of the federal alternative
minimum tax, if applicable.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Faced with an investment
environment of rising interest rates
and a possibly overheated U.S.
economy, the overall municipal bond
market struggled to break even
during the six-month period ending
August 31, 1999. In that time frame,
the Lehman Brothers Municipal Bond
Index - an index of approximately
50,000 investment-grade,
fixed-rate, tax-exempt bonds -
declined 2.06%. Still, that
performance was twice as strong on
an absolute basis relative to the
market proxy for U.S. government
bonds. Its benchmark, the Lehman
Brothers Long-Term Government
Bond Index, fell 4.16%. Municipal
bond performance, however, failed
to keep pace with its spread-sector
counterparts - corporates,
mortgages and the like. The overall
taxable-bond market, as measured
by the Lehman Brothers Aggregate
Bond Index, was down just slightly
at -0.80%. In addition to inflation
fears and rising interest rates,
municipal bonds faced several other
challenges throughout the spring
and summer of 1999. Early on, the
muni market was hard-hit by a
continuous sell-off. Institutional
investors - big buyers in 1998 -
became big sellers in 1999, putting
pressure on municipal bond prices,
which move inversely to bond yields.
Later in the period, a stronger
Japanese economy helped weaken
the U.S. dollar, which in turn also
caused bond prices to drop.
(photograph of Christine Thompson)
An interview with Christine Thompson, Portfolio Manager of Spartan
California Municipal Income Fund
Q. HOW DID THE FUND PERFORM, CHRISTINE?
A. Although it was a disappointing period for municipal bonds, the
fund performed better than the average fund of its type. For the
six-month period that ended August 31, 1999, the fund had a total
return of -2.47%. To get a sense of how the fund did relative to its
competitors, the California municipal debt funds average returned
- -3.52% for the same six-month period, according to Lipper Inc.
Additionally, the Lehman Brothers California Municipal Bond Index -
which tracks the types of securities in which the fund invests -
returned -2.50%. For the 12-month period that ended August 31, 1999,
the fund had a total return of 0.19%. That compared to the -1.49%
return of the California municipal debt funds average and the 0.40%
return for the Lehman Brothers Index.
Q. WHAT HELPED THE FUND BEAT ITS PEERS?
A. A key factor was the duration management policy of the fund.
Duration measures a fund's interest-rate sensitivity. In keeping with
Fidelity's investment approach, I managed the fund's duration to be in
line with the California municipal market as a whole, as reflected by
the Lehman Brothers California Municipal Bond Index. As a rule, I
don't lengthen or shorten duration based on where I think interest
rates will be at some point down the road, because I don't believe
that anyone can do so with any accuracy over time. But other funds in
the peer group do actively manage duration and some increased their
interest-rate sensitivity, which likely caused their returns to suffer
when interest rates rose.
Q. WHAT OTHER STRATEGIES MADE A POSITIVE CONTRIBUTION TO PERFORMANCE?
A. The fund's focus on high-quality bonds was a plus during the
period. I emphasized high-quality bonds throughout the period because
I felt that they were the better value, offering only slightly less
yield than lower-quality bonds in most instances. Over the past six
months in particular, rising interest rates, coupled with problems in
some lower-quality sectors - particularly bonds in the health care and
resource recovery, or recycling, industries - cast a pall over
lower-quality bonds in general.
Q. WERE THERE ANY DISAPPOINTMENTS DURING THE PERIOD?
A. A focus on higher-quality bonds prevented the fund from fully
benefiting from some of the advance refundings - a form of refinancing
- - that took place for several large, lower-quality bonds during the
past six months. A bond that is advance refunded becomes backed by
U.S. government securities and assumes a shorter maturity date. As a
result, the process generally results in a boost to the bond's price.
Q. WHICH BOND MATURITIES DID YOU FAVOR?
A. I continued to emphasize intermediate-maturity bonds - those set to
mature within five to 15 years. Although they were a disappointment
earlier this year, they bounced back more recently. Initially,
intermediates suffered primarily from reduced demand and increased
supply at the hands of relatively heavy selling from some specific
types of institutional investors. In contrast, strong demand from
individual investors helped to support the performance of some
shorter- and longer-term bonds. However, I continued to emphasize
intermediate bonds because, based on Fidelity's quantitative models, I
felt they offered the most attractive value for their given
interest-rate sensitivity and their total return potential. The
intermediate-maturity focus worked in the fund's favor during the past
several months, as institutional investors began to buy
intermediate-maturity bonds, helping them play catch-up to their
longer-term counterparts.
Q. WHERE ELSE DID YOU FIND OPPORTUNITIES DURING THE PERIOD?
A. I found some attractive opportunities among bonds backed by
California colleges and universities. Education bonds offer
diversification from the economically sensitive areas of the market,
such as general obligation bonds, which depend on sales, property,
income and other tax revenue collections. In addition, demographic
trends support a growing number of students seeking to obtain advanced
degrees over the next several years.
Q. WHAT'S YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
A. The decline in bond prices that we have seen over the past several
months reflects the anticipation of higher short-term interest rates.
In addition, municipals have lagged taxable Treasury securities and
are attractively priced as a consequence. That's why I believe that
conditions support the idea that municipals can do well relative to
their Treasury counterparts.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks a high level of
current income, exempt from
federal and California state
personal income tax
FUND NUMBER: 091
TRADING SYMBOL: FCTFX
START DATE: July 7, 1984
SIZE: as of August 31, 1999,
more than $1.2 billion
MANAGER: Christine Thompson,
since 1998; manager,
various Fidelity and Spartan
municipal income funds;
joined Fidelity in 1985
CHRISTINE THOMPSON ON Y2K
AND ITS POTENTIAL EFFECTS ON
MUNICIPAL BOND ISSUERS:
"Y2K may pose a number of
challenges for municipal bond
issuers. My primary focus with
regard to Y2K-related issues is
how they will impact the credit
quality of various municipal bond
issuers. Fidelity's research team
asks municipal bond issuers a
number of things, including how
vulnerable they believe they are to
potential problems, what their
short-term contingency plans are
in the event of any problems and
what long-term solutions they've
developed. What we've found so
far is that there are varying degrees
of sophistication among issuers,
with some much more poised to deal
with potential problems than
others. That's why we carefully
consider Y2K-related issues as one
of the many factors in our routine
security selection process."
(solid bullet) At the end of the period, the
fund had 2.3% of investments in
bonds issued by Puerto Rico and
Guam. As territories of the United
States, Puerto Rico and Guam can
issue bonds that are free from taxes
in all 50 states. When the supply
of California municipals is limited
or their prices look expensive, the
manager occasionally invests in
territorial bonds.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE SECTORS AS OF AUGUST
31, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE SECTORS 6 MONTHS AGO
General Obligations 25.1 22.4
Electric Utilities 12.0 12.6
Transportation 11.8 11.4
Escrowed/Pre-Refunded 10.1 13.6
Special Tax 8.5 10.0
AVERAGE YEARS TO MATURITY AS
OF AUGUST 31, 1999
6 MONTHS AGO
Years 13.6 13.3
</TABLE>
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME REMAINING UNTIL
PRINCIPAL PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS,
WEIGHTED BY DOLLAR AMOUNT.
DURATION AS OF AUGUST 31, 1999
6 MONTHS AGO
Years 7.3 7.0
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION
(MOODY'S RATINGS)
AS OF AUGUST 31, 1999
Aaa 50.8%
Aa, A 34.7%
Baa 10.6%
Not Rated 2.2%
Short-term
Investments 1.7%
Row: 1, Col: 1, Value: 50.8
Row: 1, Col: 2, Value: 34.7
Row: 1, Col: 3, Value: 10.6
Row: 1, Col: 4, Value: 2.2
Row: 1, Col: 5, Value: 1.7
AS OF FEBRUARY 28, 1999
Aaa 57.2%
Aa, A 28.8%
Baa 11.4%
Not Rated 0.2%
Short-term
Investments 2.4%
Row: 1, Col: 1, Value: 57.2
Row: 1, Col: 2, Value: 28.8
Row: 1, Col: 3, Value: 11.4
Row: 1, Col: 4, Value: 0.2
Row: 1, Col: 5, Value: 2.4
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P (registered
trademark) RATINGS. AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S
INVESTMENTS.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENTS AUGUST 31, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
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MUNICIPAL BONDS - 98.3%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 96.0%
Alameda Corridor Trans. Auth. Aaa $ 7,475 $ 7,118
Rev. Senior Lien Series A,
5.25% 10/1/21 (MBIA Insured)
Buena Park Cmnty. Redev. BBB+ 3,500 3,698
Agcy. Rfdg. (Central Bus.
District Proj.) Series A,
7.1% 9/1/14
Burbank Redev. Agy. Rfdg.:
(City Ctr. Redev. Proj.) Aaa 4,000 3,836
Series A, 5% 12/1/15 (FSA
Insured)
(Golden State Redev. Proj.) Baa1 4,655 4,771
Series A, 5.75% 12/1/08
Cabrillo Unified School Aaa 2,150 1,223
District (Cap. Appreciation)
Series A, 0% 8/1/10 (AMBAC
Insured)
California Dept. of Wtr.
Resources Wtr. Sys. Rev.:
(Central Valley Proj.):
Series J 1, 7% 12/1/12 Aa2 1,000 1,177
Series J 2, 5.9% 12/1/05 Aa2 6,400 6,911
Series Q, 6% 12/1/10 Aa2 5,150 5,600
Series S, 5% 12/1/19 Aa2 3,160 2,932
Series T, 5% 12/1/10 Aa2 3,260 3,263
Rfdg. (Central Valley Proj.) Aa2 5,215 5,712
Series Q, 6% 12/1/08
California Ed. Facilities
Auth. Rev.:
(California Student Ln. Prog. Aaa 4,900 4,990
Proj.) Series A, 6% 3/1/16
(MBIA Insured) (d)
(Claremont McKenna College Aa1 1,000 956
Proj.) 5.1% 11/1/17
(Pepperdine Univ. Proj.)
Series A:
5% 11/1/18 A1 1,770 1,630
5% 11/1/29 A1 2,500 2,230
(Scripps College Proj.) A1 6,000 5,448
5.125% 2/1/30
(Stanford Univ. Proj.):
Series N, 5.2% 12/1/27 Aaa 32,475 30,349
Series P, 5.25% 12/1/13 Aaa 2,500 2,539
(Univ. of San Diego) 5% Aaa 5,000 4,499
10/1/28 (AMBAC Insured)
(Univ. of Southern California Aa2 5,000 4,895
Proj.) 5.5% 10/1/27
Rfdg.:
(Chapman Univ.) 5.375% AAA 2,000 1,985
10/1/16 (AMBAC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Ed. Facilities
Auth. Rev.: - continued
Rfdg.:
(Claremont McKenna College Aa1 $ 5,000 $ 4,492
Proj.) 5% 11/1/29
(Santa Clara Univ. Proj.):
5.25% 9/1/16 (AMBAC Insured) Aaa 1,650 1,630
5.25% 9/1/17 (AMBAC Insured) Aaa 1,000 982
5.25% 9/1/19 (AMBAC Insured) Aaa 3,930 3,825
5.25% 9/1/26 A1 6,580 6,236
(Stanford Univ. Proj.) Series Aaa 11,000 10,096
O, 5.125% 1/1/31
(Univ. of Southern California
Proj.):
Series A:
5.65% 10/1/10 Aa2 2,840 2,988
5.7% 10/1/15 Aa2 4,500 4,609
Series C, 5.125% 10/1/28 Aa2 7,725 7,098
California Franchise Tax A1 1,825 1,921
Board Rfdg. Ctfs. of Prtn.
5.5% 10/1/06
California Gen. Oblig.:
Bonds 3.6%, tender 6/1/01 (d) 25,000 24,695
Rfdg.:
4.75% 2/1/19 (FGIC Insured) Aaa 2,000 1,778
5.25% 10/1/12 Aa3 10,090 10,191
5.75% 2/1/11 (FGIC Insured) Aa3 8,000 8,464
4.5% 12/1/24 (FGIC Insured) Aaa 5,000 4,137
5% 10/1/18 Aa3 10,000 9,323
5% 10/1/23 Aa3 8,000 7,290
5.25% 10/1/13 Aa3 1,700 1,699
5.25% 10/1/14 Aa3 3,000 2,975
5.25% 10/1/17 Aa3 1,500 1,460
5.5% 3/1/20 (FSA Insured) Aaa 3,500 3,466
5.75% 10/1/10 Aa3 5,200 5,540
6% 10/1/09 Aa3 3,500 3,805
6.4% 2/1/05 Aa3 3,375 3,684
6.6% 2/1/09 Aa3 3,000 3,382
6.6% 2/1/10 Aa3 5,000 5,654
6.75% 3/1/07 Aa3 2,300 2,600
6.75% 8/1/10 Aa3 5,675 6,490
7% 10/1/10 Aa3 6,695 7,808
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Health Facilities
Fin. Auth. Rev.:
(Gould Med. Foundation Proj.) AA- $ 4,500 $ 4,671
Series A, 7.3% 4/1/20
(Escrowed to Maturity) (e)
(Kaiser Permante) Series A, Aaa 4,720 4,631
5.55% 8/15/25 (MBIA Insured)
(Summit Med. Ctr.) Series A, Aaa 2,400 2,522
5.5% 5/1/05 (FSA Insured)
Rfdg.:
(Alexian Brothers, San Jose
Proj.):
7.05% 1/1/09 (MBIA Insured) Aaa 4,500 4,627
(Pre-Refunded to 1/1/00 @
102) (e)
7.125% 1/1/16 (MBIA Insured) Aaa 2,510 2,580
(Pre-Refunded to 1/1/00 @
102) (e)
(Catholic Healthcare West)
Series A:
4.5% 7/1/00 Baa1 3,000 3,009
4.5% 7/1/02 Baa1 7,065 6,936
4.5% 7/1/03 Baa1 1,210 1,177
4.5% 7/1/04 Baa1 1,500 1,444
5% 7/1/01 Baa1 3,615 3,612
(Children's Hosp.):
6% 7/1/03 (MBIA Insured) Aaa 1,200 1,274
6% 7/1/05 (MBIA Insured) Aaa 1,850 1,993
6% 7/1/06 (MBIA Insured) Aaa 1,500 1,624
California Hsg. Fin. Agcy.
Rev.:
(Cap. Appreciation) (Home
Mtg. Proj.):
Series 1983 A, 0% 2/1/15 Aa2 8,187 1,907
Series 1983 B, 0% 8/1/15 Aa2 170 34
Series C, 0% 8/1/21 (d) Aa2 1,780 335
(Home Mtg. Proj.):
Series A, 5% 8/1/03 (MBIA Aaa 1,835 1,861
Insured)
Series C, 7.6% 8/1/30 (d) Aa2 3,020 3,080
Series I, 4.95% 8/1/28 (MBIA Aaa 3,085 3,075
Insured) (d)
Series J, 4.85% 8/1/27 (MBIA Aaa 3,470 3,393
Insured) (d)
Series L, 5.7% 8/1/25 (MBIA Aaa 1,415 1,423
Insured) (d)
California Poll. Cont. Fing.
Auth. Poll. Cont. Rev.:
(Gen. Motors Corp.) 5.5% A3 1,500 1,516
4/1/08
Rfdg. (San Diego Gas & Elec. A2 4,000 4,234
Proj.) Series A, 5.9% 6/1/14
California Pub. Cap. Impt. Aaa 8,775 8,889
Fin. Auth. Rev. (Joint
Powers Agcy.) Series B, 8.1%
3/1/18 (MBIA Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Pub. Works Board
Lease Rev.:
(California Science Ctr. A1 $ 1,300 $ 1,291
Proj.) Series A, 5% 10/1/10
(Cmnty. College Projs.) A 2,000 2,113
Series A, 5.875% 10/1/08
(Dept. of Corrections State
Prison Proj.):
Series D, 5.25% 6/1/15 (FSA Aaa 4,000 3,978
Insured)
Series E, 6% 6/1/10 (MBIA Aaa 6,000 6,507
Insured)
(Dept. of Corrections, Madera
State Prison Proj.) Series E:
5.5% 6/1/15 A1 8,250 8,334
5.5% 6/1/19 A1 3,000 2,950
6% 6/1/07 A1 2,090 2,262
(Substance Abuse Treatment Aaa 3,000 3,032
Facilities Corcoran II)
Series A, 5.5% 1/1/14 (AMBAC
Insured)
(Various California State
Univ. Projs.):
Series A:
6.1% 10/1/06 A1 1,210 1,309
6.5% 9/1/04 A 1,090 1,187
Series B:
5.5% 6/1/14 Aa3 2,750 2,771
5.5% 6/1/19 Aa3 2,000 1,990
5.55% 6/1/10 Aa3 3,195 3,346
6.4% 12/1/09 Aa3 3,700 4,144
Series C, 5.125% 9/1/22 Aaa 10,000 9,316
(AMBAC Insured)
Rfdg.:
(California Cmnty. Colleges):
Series A 5.25% 12/1/16 A1 4,450 4,307
Series B 5.25% 3/1/09 A1 2,915 2,981
Series D, 5.375% 3/1/12 A 1,500 1,500
(California St. Univ.) Series A1 2,710 2,828
A 5.5% 10/1/09
(Dept. of Corrections State
Prison, Monterey County
Proj.) Series D:
5.375% 11/1/11 A1 2,500 2,534
5.375% 11/1/12 A1 1,250 1,259
5.375% 11/1/13 A1 5,055 5,061
5.375% 11/1/14 A1 5,000 4,970
(Library & Courts Annex) A1 1,290 1,344
Series A, 5.5% 5/1/09
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Pub. Works Board
Lease Rev.: - continued
Rfdg.:
(Various California State Aa3 $ 8,250 $ 8,406
Univ. Projs.) Series A,
5.5% 6/1/14
California Statewide Cmnty. AA- 1,250 1,251
Dev. Corp. Ctfs. of Prtn.
5.375% 10/1/13
California Statewide Cmntys.
Dev. Auth. Ctfs. of Prtn.
(Saint Joseph Health Sys.
Proj.):
5.25% 7/1/08 Aa3 2,710 2,716
5.5% 7/1/07 Aa3 1,425 1,460
California Statewide Cmntys.
Dev. Auth. Rev.:
Ctfs. of Prtn.:
(Sisters Charity Leavenworth Aa3 1,315 1,238
Proj.) 5% 12/1/14
5.616% 7/1/13 (MBIA Insured) Aaa 10,000 10,180
Rfdg. Ctfs. of Prtn.:
(Children's Hosp.) 6% 6/1/13 Aaa 2,470 2,649
(MBIA Insured)
(Hosp. Triad Healthcare) AA- 5,000 5,307
6.25% 8/1/06 (Escrowed to
Maturity) (e)
(Saint Joseph Health Sys.
Proj.):
5.5% 7/1/14 Aa3 4,500 4,494
5.5% 7/1/23 Aa3 3,000 2,918
(Triad Healthcare Hosp.) 5.9% AA- 200 207
8/1/01 (Escrowed to
Maturity) (e)
Campbell Rfdg. Ctfs. of Prtn. A2 4,965 5,076
(Civic Ctr. Proj.) 6% 10/1/18
Carson Redev. Agcy. Rfdg.:
(Redev. Proj. Area #1):
6.375% 10/1/12 Baa1 3,965 4,154
6.375% 10/1/16 Baa1 2,000 2,087
(Redev. Proj. Area #2) 5.5% Baa2 100 102
10/1/02
Castaic Lake Wtr. Agcy. Rfdg.
Ctfs. of Prtn. (Wtr. Sys.
Impt. Proj.) Series A:
7% 8/1/11 (MBIA Insured) Aaa 1,500 1,749
7% 8/1/12 (MBIA Insured) Aaa 1,000 1,174
7% 8/1/13 (MBIA Insured) Aaa 4,740 5,576
7.25% 8/1/07 (MBIA Insured) Aaa 1,755 2,052
Central Coast Wtr. Auth. Rev. Aaa 1,420 1,298
Rfdg. (State Wtr. Reg'l.
Facilities Proj.) Series A,
5% 10/1/22 (AMBAC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Central Valley Fing. Auth.
Cogeneration Proj. Rev.
(Carson Ice-Gen. Proj.):
5.5% 7/1/01 BBB- $ 1,400 $ 1,429
6% 7/1/09 BBB- 4,800 4,941
6.1% 7/1/13 (Pre-Refunded to BBB- 2,000 2,157
7/1/03 @ 102) (e)
Chino Basin Reg'l. Fing. Aaa 350 406
Auth. Rev. Rfdg. (Muni. Wtr.
District Swr. Sys. Proj.) 7%
8/1/09 (AMBAC Insured)
Coalinga Gen. Oblig. Ctfs. of BBB+ 1,655 1,700
Prtn. 7% 4/1/10
Contra Costa Wtr. District Aaa 2,000 2,054
Wtr. Rev. Series G, 5.75%
10/1/14 (MBIA Insured)
Contra Costa County Ctfs. of
Prtn. (Cap. Appreciation)
(Merrithew Mem. Hosp. Proj.):
0% 11/1/13 (Escrowed to Aaa 6,805 3,169
Maturity) (e)
0% 11/1/14 (Escrowed to Aaa 3,000 1,312
Maturity) (e)
Desert Hosp. District Hosp. Aaa 13,000 13,987
Rev. Ctfs. of Prtn. 6.392%
7/28/20 (FSA Insured)
(Pre-Refunded to 7/23/02 @
102) (e)
Duarte Gen. Oblig.:
Ctfs. of Prtn. Series A, 5% Baa2 2,000 1,867
4/1/11
Rfdg. Ctfs. of Prtn. Series A:
4.625% 4/1/07 Baa2 890 847
5% 4/1/12 Baa2 4,210 3,896
5% 4/1/13 Baa2 1,830 1,699
5.25% 4/1/08 Baa2 2,650 2,605
5.25% 4/1/09 Baa2 1,600 1,559
Eastern Muni. Wtr. District Aaa 3,600 4,138
Wtr. & Swr. Rev. Ctfs. of
Prtn. 6.75% 7/1/12 (FGIC
Insured)
Elk Grove Unified School
District Spl. Tax Rfdg.
(Commty. Facilities District
#1):
6.5% 12/1/07 (AMBAC Insured) Aaa 1,340 1,506
6.5% 12/1/24 (AMBAC Insured) Aaa 4,000 4,490
Encinitas Union School
District (Cap. Appreciation):
0% 8/1/03 (MBIA Insured) Aaa 1,750 1,476
0% 8/1/04 (MBIA Insured) Aaa 1,750 1,403
0% 8/1/10 (MBIA Insured) Aaa 1,000 569
Escondido Joint Pwrs Fing. Aaa 570 455
Auth. Lease Rev. Rfdg. (Cap.
Appreciation) (California
Ctr. for the Arts Proj.) 0%
9/1/04 (AMBAC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Eureka Unified School Aaa $ 660 $ 698
District Ctfs. of Prtn.
(Cap. Appreciation) Series
A, 6.9% 9/1/27 (FSA Insured)
Fairfield-Suisun Swr.
District Swr. Rev.:
(Cap. Appreciation) Series A, Aaa 1,635 1,131
0% 5/1/07 (MBIA Insured)
Rfdg. (Cap. Appreciation)
Series A:
0% 5/1/08 (MBIA Insured) Aaa 2,085 1,363
0% 5/1/09 (MBIA Insured) Aaa 2,080 1,278
Folsom Pub. Fing. Auth. Local BBB+ 1,285 1,359
Agcy. Rev. Series A, 7.25%
10/1/00
Foothill/Eastern Trans.
Corridor Agcy. Toll Road Rev.:
(Cap. Appreciation) Senior
Lien Series A:
0% 1/1/04 (Escrowed to Baa3 1,600 1,310
Maturity) (e)
0% 1/1/05 (Escrowed to Baa3 1,000 776
Maturity) (e)
(Cap. Appreciton) Senior Lien Baa3 2,000 1,613
Series A, 0% 1/1/08
(Escrowed to Maturity) (b)(e)
Foster City Pub. Fing. Auth.
Rev. (Foster City Cmnty.
Dev. Proj. Ln.) Series A:
5.5% 9/1/09 A- 370 374
5.8% 9/1/16 A- 1,000 1,005
6% 9/1/06 A- 1,355 1,417
6% 9/1/07 A- 1,440 1,504
6% 9/1/13 A- 1,925 1,963
Fremont Unifed School Aaa 1,000 607
District Alameda County
(Cap. Appreciation) Series
F, 0% 8/1/09 (MBIA Insured)
La Quinta Redev. Agcy. Tax.
Allocation Rfdg. (Redev.
Proj. Area #1):
7.3% 9/1/06 (MBIA Insured) Aaa 620 720
7.3% 9/1/11 (MBIA Insured) Aaa 555 665
Local Govt. Fin. Auth. Rev.
(Cap. Appreciation) (Oakland
Central District Proj.):
0% 9/1/08 (MBIA Insured) Aaa 3,710 2,385
0% 9/1/09 (MBIA Insured) Aaa 3,565 2,155
Long Beach Hbr. Rev.:
Rfdg. Series A:
5.5% 5/15/08 (FGIC Insured) Aaa 4,390 4,588
(d)
6% 5/15/09 (FGIC Insured) (d) Aaa 3,000 3,232
6% 5/15/10 (FGIC Insured) (d) Aaa 1,000 1,072
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Long Beach Hbr. Rev.: -
continued
5.125% 5/15/13 (d) Aa3 $ 12,450 $ 12,128
5.5% 5/15/11 (MBIA Insured) Aaa 700 714
(d)
5.5% 5/15/15 (MBIA Insured) Aaa 3,710 3,701
(d)
5.75% 5/15/07 (MBIA Insured) Aaa 3,845 4,088
(d)
6% 5/15/06 (MBIA Insured) (d) Aaa 3,000 3,229
Los Angeles Cmnty. Redv. Aaa 1,780 1,856
Agcy. Tax Allocation
(Hollywood Redev. Proj.)
Series C, 5.5% 7/1/10 (MBIA
Insured)
Los Angeles County Ctfs. of
Prtn. (Cap. Appreciation):
(Correctional Facilities
Proj.):
0% 9/1/10 (MBIA Insured) Aaa 3,770 2,137
(Escrowed to Maturity) (e)
0% 9/1/11 (MBIA Insured) Aaa 6,400 3,409
(Escrowed to Maturity) (e)
(Disney Parking Proj.):
0% 3/1/10 A3 2,000 1,114
0% 3/1/11 A3 1,950 1,022
0% 3/1/12 A3 2,180 1,072
0% 3/1/13 A3 6,490 2,984
0% 3/1/18 A3 3,000 978
0% 3/1/19 A3 3,175 967
0% 3/1/20 A3 1,000 284
Los Angeles County Metro.
Trans. Auth. Sales Tax Rev.:
(Proposition A) 1st Tier Sr. Aaa 1,585 1,721
Series A, 5.9% 7/1/14 (MBIA
Insured) (Pre-Refunded to
7/1/06 @ 101) (e)
Rfdg.:
(Proposition A Proj.):
First Tier Senior Series A, Aaa 3,230 3,267
5.25% 7/1/11 (MBIA Insured)
First Tier Senior Series C, Aaa 3,310 2,984
4.75% 7/1/17 (AMBAC Insured)
(Proposition C Proj.) Second Aaa 7,000 7,305
Senior Series A, 5.5% 7/1/10
(AMBAC Insured)
Los Angeles County Pub. Works Aaa 1,500 1,499
Fing. Auth. Lease Rev. Rfdg.
Series A, 5.25% 9/1/13 (MBIA
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles County Pub. Works Aa3 $ 6,000 $ 5,541
Fing. Auth. Rev. (Reg'l.
Park & Open Space District
Proj.) Series A, 5% 10/1/19
Los Angeles Dept. Arpts. Rev. Aaa 1,000 1,019
(Los Angeles Int'l. Arpt.
Proj.) Series D, 5.625%
5/15/12 (FGIC Insured) (d)
Los Angeles Dept. Wtr. & Pwr.
Elec. Plant Rev.:
Rfdg.:
Second Issue:
4.75% 11/15/19 (MBIA Insured) Aaa 4,000 3,547
5.25% 11/15/26 (MBIA Insured) Aaa 17,760 16,708
5.4% 11/15/31 (MBIA Insured) Aaa 4,000 3,841
4.75% 8/15/12 (FGIC Insured) Aaa 6,035 5,796
4.75% 8/15/16 (FGIC Insured) Aaa 2,700 2,450
6.375% 2/1/20 Aa3 1,000 1,048
Second Issue:
4.75% 10/15/20 Aa3 1,800 1,581
6.75% 10/15/04 (AMBAC Insured) Aaa 2,400 2,660
9% 10/15/01 Aa3 110 121
5.25% 6/15/13 (FSA Insured) Aaa 3,100 3,097
Los Angeles Dept. Wtr. & Pwr.
Wtrwks. Rfdg.:
5.5% 10/15/10 Aa3 2,630 2,736
5.5% 10/15/11 (MBIA Insured) Aaa 3,670 3,789
Los Angeles Gen. Oblig.:
Ctfs. of Prtn.:
(Dept. Pub. Social Services AAA 3,700 3,636
Proj.) Series A, 5.5% 8/1/24
(AMBAC Insured)
7.3% 4/1/20 - 3,000 3,099
Rfdg. Series A, 5.25% 9/1/12 Aa2 4,455 4,500
Los Angeles Hbr. Dept. Rev.:
Series B:
5% 8/1/03 (d) Aa3 2,500 2,560
5.25% 11/1/06 (d) Aa3 7,380 7,642
5.25% 11/1/07 (d) Aa3 4,290 4,431
5.25% 11/1/10 (d) Aa3 9,105 9,185
5.25% 11/1/11 (d) Aa3 7,095 7,106
5.3% 8/1/06 (d) Aa3 2,000 2,075
7.6% 10/1/18 (Escrowed to AAA 14,810 17,933
Maturity) (e)
Los Angeles Unified School
District:
Series A, 6% 7/1/14 (FGIC Aaa 1,200 1,288
Insured)
Series B, 5.375% 7/1/12 (FGIC Aaa 5,025 5,107
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
M-S-R Pub. Pwr. Agcy. San Aaa $ 2,500 $ 2,844
Juan Proj. Rev. Rfdg. Series
D, 6.75% 7/1/20 (MBIA
Insured) (Escrowed to
Maturity) (e)
Madera County Ctfs. of Prtn. Aaa 1,480 1,608
(Valley Children's Hosp.)
6.25% 3/15/05 (MBIA Insured)
Manhattan Beach Unified Aaa 975 589
School District (Cap.
Appreciation) Series A, 0%
9/1/09 (FGIC Insured)
Metro. Wtr. District of
Southern California Rfdg.:
Series A 2, 8% 3/1/09 Aaa 8,030 9,892
Series A:
5.25% 3/1/13 Aaa 2,500 2,511
5.25% 3/1/14 Aaa 4,000 3,995
Metro. Wtr. District Southern
California Wtrwks. Rev.:
Rfdg. Series A, 4.75% 7/1/22 Aa2 10,000 8,702
Series A, 5% 7/1/26 Aa2 5,050 4,560
5.95% 8/5/22 (Pre-Refunded to Aa2 2,600 2,774
2/7/03 @ 102) (e)
Modesto Pub. Fing. Auth. Aaa 4,000 3,646
Lease Rev. Rfdg. (Cap.
Impts. & Refng. Proj.)
5.125% 9/1/33 (AMBAC Insured)
Modesto Gen. Oblig. Ctfs. of
Prtn.:
(Cmnty. Ctr. Refing. Proj.)
Series A:
5% 11/1/23 (AMBAC Insured) Aaa 2,500 2,278
5.6% 11/1/14 (AMBAC Insured) Aaa 1,370 1,415
(Golf Course Refing. Proj.) Aaa 1,585 1,444
Series B, 5% 11/1/23 (FGIC
Insured)
Modesto Irrigation District:
Ctfs. of Prtn. (Geysers A1 5,000 4,644
Geothermal Pwr. Proj.)
Series 1986 A, 5% 10/1/17
Ctfs. of Prtn. (Cap.
Appreciation) (Rfdg. & Cap.
Impts. Proj.) Series A:
0% 10/1/08 (MBIA Insured) Aaa 2,270 1,450
(Escrowed to Maturity) (e)
0% 10/1/09 (MBIA Insured) Aaa 2,270 1,366
(Escrowed to Maturity) (e)
0% 10/1/10 (MBIA Insured) Aaa 2,270 1,288
(Escrowed to Maturity) (e)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Moreno Valley Unified School Aaa $ 2,350 $ 2,499
District Ctfs. of Prtn.
(Land Acquisition Proj.)
Series F, 6.7% 9/1/11 (FSA
Insured) (Pre-Refunded to
9/1/02 @ 102) (e)
Northern California Pwr. Aaa 3,825 4,751
Agcy. Rfdg. (Hydro Elec.
Proj. # 1) Series A, 7.5%
7/1/23 (AMBAC Insured)
(Pre-Refunded to 7/1/21 @
100) (e)
Northern California Aaa 7,100 8,261
Transmission Rev. (Ore
Transmission Proj.) Series
A, 7% 5/1/13 (MBIA Insured)
Northern Pwr. Agcy. Multiple Aaa 7,600 8,142
Cap. Facilities Rev. 6.538%
8/1/25 (MBIA Insured)
Oakland Ctfs. of Prtn. Rfdg. Aaa 2,750 1,909
(Cap. Appreciation) (Oakland
Museum Proj.) Series A, 0%
4/1/07 (AMBAC Insured)
Oakland Redev. Agcy. Sub Tax Aaa 1,000 917
Allocation (Central District
Redev. Proj.) 5% 9/1/21
(MBIA Insured)
Ontario Redev. Fing. Auth.
Rev.:
(Cap. Appreciation) (Proj.
#1- Ctr. City Cimarron):
0% 8/1/08 (MBIA Insured) Aaa 3,255 2,101
0% 8/1/09 (MBIA Insured) Aaa 3,260 1,979
0% 8/1/10 (MBIA Insured) Aaa 3,255 1,851
Rfdg. (Ontario Redev. Proj.
#1):
6.65% 8/1/07 (MBIA Insured) Aaa 1,000 1,130
6.95% 8/1/11 (MBIA Insured) Aaa 1,000 1,166
Orange County Pub. Fin. Auth.
Waste Mgt. Sys. Rev. Rfdg.:
5.25% 12/1/13 (AMBAC Insured) Aaa 4,000 3,943
(d)
5.75% 12/1/09 (AMBAC Insured) Aaa 1,620 1,718
(d)
5.75% 12/1/11 (AMBAC Insured) Aaa 4,000 4,163
(d)
Orange County Arpt. Rev. Rfdg.:
5.5% 7/1/04 (MBIA Insured) (d) Aaa 2,000 2,091
5.5% 7/1/11 (MBIA Insured) (d) Aaa 4,000 4,083
6% 7/1/05 (MBIA Insured) (d) Aaa 3,000 3,218
6% 7/1/07 (MBIA Insured) (d) Aaa 3,135 3,387
Orange County Wtr. District Aaa 1,000 1,036
Ctfs. of Prtn. Rfdg. Series
A, 5.5% 8/15/09 (AMBAC
Insured)
Placer County Wtr. Agcy. Rev. A+ 8,830 8,089
(Middle Fork Proj.) Series
A, 3.75% 7/1/12
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Pleasanton Joint Powers Fing.
Auth. Rev.:
(Reassessment Proj.) Series A:
5.7% 9/2/01 Baa1 $ 1,150 $ 1,179
5.8% 9/2/02 Baa1 4,990 5,171
6.15% 9/2/12 Baa1 12,260 12,819
Series A, 6% 9/2/05 Baa1 2,145 2,269
Port of Oakland Port Rev.:
Rfdg. (Cap. Appreciation)
Series F:
0% 11/1/05 (MBIA Insured) Aaa 300 226
0% 11/1/06 (MBIA Insured) Aaa 2,890 2,061
0% 11/1/07 (MBIA Insured) Aaa 4,250 2,869
Series G, 6% 11/1/07 (MBIA Aaa 900 975
Insured) (d)
Rancho Wtr. District Fing. Aaa 6,900 7,302
Auth. Rev. 6.427% 8/17/21
(AMBAC Insured)
(Pre-Refunded to 9/11/01 @
102) (e)
Redding Elec. Sys. Rev.:
Ctfs. of Prtn. Rfdg. (Cap. Aaa 1,730 1,258
Appreciation) Series A, 0%
6/1/06 (FGIC Insured)
Rfdg. Ctfs. of Prtn. (Cap.
Appreciation) Series A:
0% 6/1/07 (FGIC Insured) Aaa 1,890 1,302
0% 6/1/08 (FGIC Insured) Aaa 1,300 846
Richmond Redev. Agcy. Tax Aaa 105 113
Allocation Harbour Redev. 7%
7/1/09 (FSA Insured)
Riverside County Pub.Fing.
Auth. Tax Allocation Rev.:
(Redev. Proj.) Series A:
4.8% 10/1/07 Baa2 1,080 1,054
5% 10/1/09 Baa2 1,140 1,105
5.1% 10/1/10 Baa2 1,245 1,200
5.25% 10/1/12 Baa2 1,375 1,320
5.5% 10/1/22 Baa2 4,500 4,215
(Redev. Projs.) Series A, 5% Baa2 1,135 1,113
10/1/08
Riverside County Asset
Leasing Corp. Leasehold Rev.
(Riverside County Hosp.
Proj.):
Series A:
5.75% 6/1/01 (MBIA Insured) Aaa 1,250 1,286
6.375% 6/1/09 (MBIA Insured) Aaa 5,000 5,372
6.5% 6/1/12 (MBIA Insured) Aaa 18,000 20,172
Series B, 5.7% 6/1/16 (MBIA Aaa 1,950 2,000
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Riverside County Redev. Agcy.
Tax Allocation (Redev. Proj.
#4) Series A:
7.5% 10/1/10 (Pre-Refunded to BBB $ 1,000 $ 1,086
10/1/01 @ 102) (e)
7.5% 10/1/26 (Pre-Refunded to BBB 2,500 2,715
10/1/01 @ 102) (e)
Riverside Unified School Aaa 5,485 5,941
District Ctfs. of Prtn.
(Cap. Appreciation) (Land
Acquisition Proj.) Series B,
7.375% 9/1/26 (FSA Insured)
Sacramento City Fing. Auth. Aaa 2,000 1,977
Lease Rev. Rfdg. Series A,
5.4% 11/1/20 (AMBAC Insured)
Sacramento Cogeneration Auth.
Cogeneration Proj. Rev.
(Procter & Gamble Proj.):
5.7% 7/1/00 BBB- 1,200 1,216
5.9% 7/1/02 BBB- 1,000 1,040
6% 7/1/03 BBB- 700 735
6.375% 7/1/10 BBB- 700 734
6.5% 7/1/21 (Pre-Refunded to BBB- 3,200 3,562
7/1/05 @ 102) (e)
Sacramento County Ctfs. of Aaa 1,000 984
Prtn. Rfdg. (Pub. Facilities
Proj.- Coroner/Crime Lab.)
4.8% 10/1/10 (AMBAC Insured)
Sacramento Muni. Util.
District Elec. Rev.:
Rfdg. Series L, 5.125% 7/1/22 Aaa 4,000 3,727
(MBIA Insured)
Series M, 5.25% 7/1/28 A2 6,500 6,019
5.45% 11/15/08 (FGIC Insured) Aaa 17,700 18,432
Sacramento Pwr. Auth.
Cogeneration Proj. Rev.:
6% 7/1/22 BBB- 2,700 2,698
6.5% 7/1/06 BBB- 4,500 4,908
6.5% 7/1/07 BBB- 2,000 2,169
6.5% 7/1/08 BBB- 1,000 1,084
San Bernadino County Trans. Aaa 4,000 4,413
Auth. Sales Tax Rev. Rfdg.
Series A, 6.25% 3/1/10 (MBIA
Insured)
San Bernardino County:
Ctfs. of Prtn:
(Cap. Facilities Proj.) AAA 7,500 8,903
Series B, 6.875% 8/1/24
(Escrowed to Maturity) (e)
(Med. Ctr. Fing. Proj.) 5.5% Aaa 2,500 2,636
8/1/06 (MBIA Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Bernardino County: -
continued
Ctfs. of Prtn:
Rfdg. (Med. Ctr. Fing. Proj.) A3 $ 915 $ 929
5.25% 8/1/04
Rfdg. Ctfs. of Prtn. (Med. A3 10,000 9,536
Ctr. Fing. Proj.) 5.5% 8/1/22
San Diego County Ctfs. of
Prtn.:
(Burnham Institute):
5.7% 9/1/11 Baa3 800 801
6.25% 9/1/29 Baa3 3,200 3,199
(Sharp Healthcare) 5.25% Aaa 1,670 1,716
8/15/09 (MBIA Insured)
San Diego County Wtr. Auth. Aaa 5,000 5,195
Wtr. Rev. Ctfs. of Prtn.
5.632% 4/25/07 (FGIC Insured)
San Diego Multi-Family Hsg. AAA 1,585 1,585
Rev. (Island Gardens Apts.
Proj.) Series B, 9.5%
10/20/20, LOC Govt. Nat'l.
Mortgage Assoc.
San Diego Pub. Facilities Aaa 1,000 999
Fing. Auth. Swr. Rev. Series
B, 5.375% 5/15/15 (FGIC
Insured)
San Francisco Bay Area Rapid
Trans. District Sales Tax
Rev. Rfdg.:
5.25% 7/1/11 Aa3 1,350 1,368
5.25% 7/1/12 Aa3 8,920 8,974
5.25% 7/1/14 Aa3 5,110 5,067
5.25% 7/1/18 Aa3 4,500 4,343
San Francisco Bay Area Trans.
Fing. Auth. (Bridge Toll):
4.75% 8/1/01 (American Cap. A 1,000 1,008
Access Corp. Insured)
5% 8/1/02 (American Cap. A 1,000 1,013
Access Corp. Insured)
5.5% 8/1/05 (American Cap. A 1,000 1,029
Access Corp. Insured)
5.75% 2/1/07 (American Cap. A 1,500 1,556
Access Corp. Insured)
San Francisco Bldg. Auth. A1 2,640 2,685
Lease Rev. (Dept. Gen. Svcs.
Lease Proj.) Series A, 5%
10/1/08
San Francisco City & County Aaa 1,500 1,576
Gen. Oblig. Rfdg. Series 1,
5.5% 6/15/09 (FGIC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County
Arpt. Commission Int'l.
Arpt. Rev.:
(SPL Facilities Lease - SFO
Fuel Co. Proj.) Series A:
5.125% 1/1/17 (AMBAC Insured) Aaa $ 6,000 $ 5,672
(d)
5.25% 1/1/18 (AMBAC Insured) Aaa 4,515 4,290
(d)
5.25% 1/1/19 (AMBAC Insured) Aaa 4,750 4,495
(d)
Second Series Issue 12B Aaa 2,500 2,502
5.625% 5/1/21 (FGIC Insured)
Second Series Issue 22, 5% Aaa 2,605 2,608
5/1/09 (AMBAC Insured) (d)
Second Series Issue 23A:
5.5% 5/1/07 (FGIC Insured) (d) Aaa 1,045 1,094
5.5% 5/1/08 (FGIC Insured) (d) Aaa 2,755 2,879
Second Series Issue 9 A, Aaa 2,000 2,041
5.125% 5/1/07 (FGIC Insured)
(d)
Second Series, Issue 10A, Aaa 3,680 3,813
5.3% 5/1/06 (MBIA Insured)
(d)
Second Series, Issue 15A, Aaa 4,295 4,441
5.6% 5/1/02 (FSA Insured) (d)
Second Series, Issue 16-A Aaa 5,035 4,870
5.375% 5/1/18 (FSA Insured)
(d)
Second Series, Issue 18-A:
5.25% 5/1/11 (MBIA Insured) Aaa 3,280 3,286
(d)
6% 5/1/05 (MBIA Insured) (d) Aaa 2,375 2,543
San Francisco City & County A1 1,000 1,070
Pub. Util. Commission Wtr.
Rev. Rfdg. Series A, 6.5%
11/1/09
San Francisco City & County
Redev. Fing. Auth. Tax
Allocation Rev.:
(Cap. Appreciation) Series A:
0% 8/1/08 (FGIC Insured) Aaa 1,085 700
0% 8/1/09 (FGIC Insured) Aaa 1,085 659
0% 8/1/10 (FGIC Insured) Aaa 1,085 617
Rfdg. (Cap. Appreciation) Aaa 1,475 839
(San Francisco Redev. Proj.)
Series B, 0% 8/1/10 (MBIA
Insured)
San Francisco City & County
Swr. Rev. (Cap.
Appreciation) Series B:
0% 10/1/06 (FGIC Insured) Aaa 3,690 2,642
0% 10/1/07 (FGIC Insured) Aaa 4,770 3,233
0% 10/1/08 (FGIC Insured) Aaa 1,600 1,024
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Joaquin County Ctfs. of
Prtn. (Gen. Hosp. Proj.):
5.7% 9/1/01 (Escrowed to A2 $ 2,250 $ 2,322
Maturity) (e)
6.625% 9/1/20 (Pre-Refunded A2 2,500 2,755
to 9/1/03 @ 102) (e)
San Jose Arpt. Rev. Rfdg. Aaa 1,905 2,051
5.875% 3/1/07 (FGIC Insured)
San Jose Redev. Agcy. Tax
Allocation:
(Merged Area Redev. Proj.):
4.75% 8/1/18 (AMBAC Insured) Aaa 1,910 1,705
4.75% 8/1/29 (AMBAC Insured) Aaa 7,150 6,071
Rfdg. (Merged Area Redev. Aaa 3,000 3,233
Proj.) 6% 8/1/15 (MBIA
Insured)
San Mateo County Trans. Aaa 3,190 3,236
District Sales Tax Rev.
Series A, 5.25% 6/1/11 (FSA
Insured)
Santa Clara County Fing.
Auth. Lease Rev. (VMC
Facilities Replacement
Proj.) Series A:
7.75% 11/15/08 (AMBAC Insured) Aaa 1,175 1,429
7.75% 11/15/09 (AMBAC Insured) Aaa 3,725 4,554
Santa Clara County Tran. AA 8,500 8,005
District Sales Tax Rev.
Rfdg. Series A, 5.25% 6/1/21
Santa Margarita/Dana Point
Auth. Rev. Rfdg. (Impt.
Dists. 1&2 - 2A&8) Series A:
7.25% 8/1/07 (MBIA Insured) Aaa 2,200 2,564
7.25% 8/1/08 (MBIA Insured) Aaa 1,780 2,091
7.25% 8/1/12 (MBIA Insured) Aaa 1,865 2,233
South Orange County Pub.
Fing. Auth. Spl. Tax Rev.:
(Foothill Area) Series C:
7.5% 8/15/06 (FGIC Insured) Aaa 2,000 2,346
7.5% 8/15/07 (FGIC Insured) Aaa 2,290 2,708
8% 8/15/09 (FGIC Insured) Aaa 3,650 4,518
Rfdg. Series A, 7% 9/1/10 Aaa 3,300 3,846
(MBIA Insured)
Southern California Pub. Pwr.
Auth. Pwr. Proj. Rev.:
(Multiple Projs.):
6.75% 7/1/01 A 2,000 2,080
6.75% 7/1/10 A 1,400 1,581
6.75% 7/1/11 A 6,500 7,336
7% 7/1/05 A 2,300 2,393
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Southern California Pub. Pwr.
Auth. Pwr. Proj. Rev.: -
continued
Rfdg.:
(Mead Adelanto Proj.) Series Aaa $ 2,000 $ 1,816
A, 4.75% 7/1/16 (AMBAC
Insured)
Series A, 5% 7/1/15 (AMBAC Aaa 1,000 944
Insured) (Escrowed to
Maturity) (e)
Southern California Pub. Pwr. Aa3 1,000 984
Auth. Transmission Proj.
Rev. Rfdg. (Southern
Transmission Proj.) 5.5%
7/1/20
Stanislaus County Rfdg. Ctfs. Aaa 1,500 1,487
of Prtn. (Cap. Impt. Prog.)
Series A, 5.25% 5/1/14 (MBIA
Insured)
Sulpher Springs Unified
School District Series A:
0% 9/1/07 (MBIA Insured) Aaa 4,445 3,025
0% 9/1/08 (MBIA Insured) Aaa 4,745 3,051
0% 9/1/09 (MBIA Insured) Aaa 2,485 1,502
0% 9/1/12 (MBIA Insured) Aaa 2,750 1,371
Tahoe-Truckee Joint Unified Aaa 6,625 3,751
School District (Cap.
Appreciation) Series A, 0%
9/1/10 (FGIC Insured)
(Escrowed to Maturity) (e)
Univ. of California Revs.:
(Multi Purp. Projs.) Series H:
5.25% 9/1/10 (FGIC Insured) Aaa 2,840 2,898
5.25% 9/1/11 (FGIC Insured) Aaa 2,990 3,028
Rfdg. (Multiple Purp. Projs.) Aaa 100 114
Series C, 9% 9/1/02 (AMBAC
Insured)
Upland Ctfs. of Prtn. Rfdg.
(San Antonio Cmnty. Hosp.
Proj.):
5.25% 1/1/08 A 3,700 3,661
5.25% 1/1/13 A 8,500 8,097
West Covina Ctfs. of Prtn.
(Queen of The Valley Hosp.
Proj.):
5.9% 8/15/02 (Escrowed to A2 875 917
Maturity) (e)
6% 8/15/03 (Escrowed to A2 925 982
Maturity) (e)
6.125% 8/15/04 (Escrowed to A2 980 1,055
Maturity) (e)
1,236,453
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
GUAM - 0.6%
Guam Pwr. Auth. Rev. Series A:
4% 10/1/01 Baa3 $ 1,500 $ 1,488
4% 10/1/02 Baa3 2,425 2,388
4% 10/1/03 Baa3 1,795 1,754
4% 10/1/04 Baa3 1,620 1,566
7,196
PUERTO RICO - 1.7%
Puerto Rico Commonwealth:
(Pub. Impt.):
5% 7/1/01 Baa1 4,000 4,048
5% 7/1/02 Baa1 3,305 3,357
Rfdg. (Pub. Impt.) 5.5% 7/1/11 Baa1 5,675 5,816
Puerto Rico Muni. Fin. Agcy.:
Rfdg. Series B, 5.5% 7/1/02 Aaa 5,105 5,288
(FSA Insured)
Series A, 5.5% 7/1/02 (FSA Aaa 2,845 2,947
Insured)
21,456
TOTAL MUNICIPAL BONDS 1,265,105
(Cost $1,249,876)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL NOTES - 1.7%
CALIFORNIA - 1.7%
California Poll. Cont. Fing.
Auth. Poll. Cont. Rev. Rfdg.
(Pacific Gas & Elec. Co.):
Series 1996 C, 2.65%, LOC 10,600 10,600
Bank of America NA, VRDN (c)
Series 1996 G, 2.7%, VRDN (c) 1,400 1,400
Series 1997 B, 2.7%, LOC 4,100 4,100
Deutsche Bank AG, VRDN (c)(d)
Series E, 2.55%, LOC Morgan 900 900
Guaranty Trust Co., NY, VRDN
(c)
California Poll. Cont. Fing. 1,100 1,100
Auth. Resource Recovery
Rev. (Atlantic Richfield
Co.) Series 1994 A, 2.75%,
VRDN (c)(d)
California Poll. Cont. Fing. 1,200 1,200
Auth. Solid Waste Disp. Rev.
(Shell Oil Co. Martinez
Proj.) Series 1994 A, 2.65%,
VRDN (c)(d)
MUNICIPAL NOTES - CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Chula Vista Ind. Dev. Rev. $ 1,700 $ 1,700
(San Diego Gas & Elec. Co.)
Series 1997 A, 2.5%, VRDN
(c)(d)
Orange County Ctfs. of Prtn. 1,200 1,200
(Sanitation District # 1 to
7 & 11) Series 1990 1992 C,
2.55% (FGIC Insured), VRDN
(c)
TOTAL MUNICIPAL NOTES 22,200
(Cost $22,200)
TOTAL INVESTMENT IN $ 1,287,305
SECURITIES - 100%
(Cost $1,272,076)
</TABLE>
SECURITY TYPE ABBREVIATION
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) Standard & Poor's(registered trademark) credit ratings are used in
the absence of a rating by Moody's Investors Service, Inc.
(b) Debt obligation initially issued in zero coupon form which
converts to coupon form at a specified rate and date. The rate shown
is the rate at period end.
(c) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Security collateralized by an amount sufficient to pay interest
and principal.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows:
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 79.0% AAA, AA, A 83.6%
Baa 7.7% BBB 7.9%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 2.2%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investments in securities, is as follows:
General Obligations 25.1%
Electric Utilities 12.0
Transportation 11.8
Escrowed/Pre-Refunded 10.1
Special Tax 8.5
Education 8.4
Water & Sewer 7.6
Health Care 7.0
Lease Revenue 5.3
Others (individually less 4.2
than 5%)
100.0%
INCOME TAX INFORMATION
At August 31, 1999, the aggregate cost of investment securities for
income tax purposes was $1,272,078,000. Net unrealized appreciation
aggregated $15,227,000, of which $40,206,000 related to appreciated
investment securities and $24,979,000 related to depreciated
investment securities.
At February 28, 1999 the fund was required to defer approximately
$5,014,000 of losses on futures contracts.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) AUGUST 31, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,287,305
value (cost $1,272,076) -
See accompanying schedule
Cash 130
Receivable for investments 472
sold
Receivable for fund shares 488
sold
Interest receivable 17,672
Other receivables 51
TOTAL ASSETS 1,306,118
LIABILITIES
Payable for investments $ 8,606
purchased
Payable for fund shares 1,884
redeemed
Distributions payable 1,462
Accrued management fee 411
Other payables and accrued 144
expenses
TOTAL LIABILITIES 12,507
NET ASSETS $ 1,293,611
Net Assets consist of:
Paid in capital $ 1,278,449
Accumulated undistributed net (67)
realized gain (loss) on
investments
Net unrealized appreciation 15,229
(depreciation) on investments
NET ASSETS, for 109,669 $ 1,293,611
shares outstanding
NET ASSET VALUE, offering $11.80
price and redemption price
per share ($1,293,611
(divided by) 109,669 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS
SIX
MONTHS ENDED AUGUST 31, 1999
(UNAUDITED)
INTEREST INCOME $ 33,693
EXPENSES
Management fee $ 2,537
Transfer agent fees 507
Accounting fees and expenses 160
Non-interested trustees' 2
compensation
Custodian fees and expenses 23
Registration fees 16
Audit 19
Legal 2
Total expenses before 3,266
reductions
Expense reductions (7) 3,259
NET INTEREST INCOME 30,434
REALIZED AND UNREALIZED GAIN 4,929
(LOSS)
Net realized gain (loss) on
investment securities
Change in net unrealized (69,136)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (64,207)
NET INCREASE (DECREASE) IN $ (33,773)
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Custodian credits $ 5
Transfer agent credits 2
$ 7
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED AUGUST 31, YEAR ENDED FEBRUARY 28,
1999 1999
(UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 30,434 $ 58,776
Net realized gain (loss) 4,929 15,153
Change in net unrealized (69,136) 886
appreciation (depreciation)
NET INCREASE (DECREASE) IN (33,773) 74,815
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (30,434) (58,776)
From net interest income
From net realized gain (3,525) (10,872)
TOTAL DISTRIBUTIONS (33,959) (69,648)
Share transactions Net 187,702 338,914
proceeds from sales of shares
Reinvestment of distributions 24,254 51,113
Cost of shares redeemed (209,363) (274,845)
NET INCREASE (DECREASE) IN 2,593 115,182
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) (65,139) 120,349
IN NET ASSETS
NET ASSETS
Beginning of period 1,358,750 1,238,401
End of period $ 1,293,611 $ 1,358,750
OTHER INFORMATION
Shares
Sold 15,422 27,333
Issued in reinvestment of 1,999 4,128
distributions
Redeemed (17,254) (22,189)
Net increase (decrease) 167 9,272
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED AUGUST 31, YEARS ENDED FEBRUARY 28,
1999
(UNAUDITED) 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 12.410 $ 12.360 $ 11.810 $ 11.720 $ 11.120 $ 12.100
period
Income from Investment .277 .569 .589 .599 .625 .685
Operations Net interest
income
Net realized and unrealized (.578) .154 .550 .096 .597 (.830)
gain (loss)
Total from investment (.301) .723 1.139 .695 1.222 (.145)
operations
Less Distributions
From net interest income (.277) (.569) (.589) (.602) (.622) (.685)
From net realized gain (.032) (.104) - (.003) - (.150)
Total distributions (.309) (.673) (.589) (.605) (.622) (.835)
Net asset value, end of period $ 11.800 $ 12.410 $ 12.360 $ 11.810 $ 11.720 $ 11.120
TOTAL RETURN B, C (2.47)% 6.00% 9.89% 6.16% 11.25% (0.91)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 1,294 $ 1,359 $ 1,238 $ 486 $ 498 $ 477
millions)
Ratio of expenses to average .49% A .52% .54% D .57% .58% .56%
net assets
Ratio of expenses to average .49% A .52% .53% E .57% .58% .56%
net assets after expense
reductions
Ratio of net interest income 4.53% A 4.59% 4.85% 5.19% 5.44% 6.16%
to average net assets
Portfolio turnover rate 41% A 34% 37% 17% 37% 29%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
F FOR THE YEAR ENDED FEBRUARY 29
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past five year and life of fund total
returns would have been lower.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
SPARTAN CA MUNICIPAL MONEY 1.33% 2.64% 17.00% 39.86%
MARKET
California Tax-Free Money 1.22% 2.44% 15.58% n/a
Market Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or since the fund started on November 27, 1989. For example, if
you had invested $1,000 in a fund that had a 5% return over the past
year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to
the California tax-free money market funds average, which reflects the
performance of California tax-free money market funds with similar
objectives tracked by IBC Financial Data, Inc. The past six month
average represents a peer group of 40 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
SPARTAN CA MUNICIPAL MONEY 2.64% 3.19% 3.49%
MARKET
California Tax-Free Money 2.44% 2.90% n/a
Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
8/30/99 5/31/99 3/1/99 11/30/98 8/31/98
Spartan California Municipal 2.64% 2.65% 2.37% 2.65% 2.61%
Money Market
California Tax-Free Money 2.40% 2.55% 2.17% 2.45% 2.42%
Market Funds Average
Spartan California Municipal 4.54% 4.55% 4.08% 4.56% 4.49%
Money Market - Tax-equivalent
Portion of fund's income 20.94% 17.87% 20.62% 11.92% 1.21%
subject to state taxes
Spartan California
Municipal Money
Market
California Tax-Free
Money Market
Funds Average
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 2.64
Row: 1, Col: 2, Value: 2.4
Row: 2, Col: 1, Value: 2.65
Row: 2, Col: 2, Value: 2.55
Row: 3, Col: 1, Value: 2.37
Row: 3, Col: 2, Value: 2.17
Row: 4, Col: 1, Value: 2.65
Row: 4, Col: 2, Value: 2.45
Row: 5, Col: 1, Value: 2.61
Row: 5, Col: 2, Value: 2.42
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
table above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
California tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1999 federal and state
income tax rate of 41.95%. The fund's yields mentioned above reflect
that a portion of the fund's income was subject to state taxes. A
portion of the fund's income may be subject to the federal alternative
minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
(checkmark)COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight comparison
between the two may be
misleading because it ignores
the way taxes reduce taxable
returns. Tax-equivalent yield -
the yield you'd have to earn on
a similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Diane McLaughlin)
An interview with Diane McLaughlin, Portfolio Manager of Spartan
California Municipal Money Market Fund
Q. WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PAST SIX
MONTHS, DIANE?
A. Investors confronted issues that have characterized the U.S.
economy for some time: strong economic growth, tight labor markets and
expectations of inflationary pressures. Consumer confidence was at an
all-time high, prompting strong consumer spending that fueled economic
growth above an annual rate of 3% during the first half of 1999. In
addition, unemployment stayed at historically low levels. Low
unemployment usually causes employers to raise wages to attract or
retain workers, passing on the additional costs in the form of price
increases. However, we have yet to see significant evidence of higher
prices. The consumer price index (CPI) increased only about 2% over
the past year. Wages have started to creep up, but have been largely
offset by increases in productivity. The backdrop at the end of 1998
was similar, but the Federal Reserve Board cut short-term interest
rates three times because of global economic instability and aversion
to risk. However, during the first six months of 1999 it became
apparent that these negative influences had dissipated. With continued
robust economic growth and tight labor markets increasing the
potential for inflation, the Fed felt the need to act pre-emptively by
implementing a 0.25 percentage point hike in the rate banks charge
each other - known as the fed funds target rate - in June. The Fed
raised this rate by 0.25 percentage points again in August - bringing
it to 5.25% at the end of the period - apparently taking away another
of the three rate cuts it had implemented in late 1998.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. In addition to economic fundamentals, the fund's strategy was
dictated by technical factors - issues of supply and demand. In
general, strong demand for short-term California paper dampens yields
on very short-maturity money market instruments such as variable-rate
demand notes and commercial paper. Investors looking to buy these
securities have to pay a premium for the California state tax
exemption. The supply of one-year California exempt notes, however,
outpaces the demand for them, leading issuers to offer yields that are
attractive even to mutual funds that invest in municipal securities
from across the U.S. Throughout the period, I looked for opportunities
in one-year paper. I increased the fund's stake in that sector toward
the end of the period because the supply of one-year paper was
particularly heavy, leading to especially attractive yields. These
purchases increased the average maturity of the fund to 59 days at the
end of the period, longer than the average of its peers. In addition,
I turned some of my focus - within the limits set by the fund's
prospectus - to out-of-state investments that offered more appealing
after-state-tax yields than state-tax-free alternatives in the
California market. Even though more of shareholders' income will be
taxable at the state level because of these investments, I pursued
this strategy to enable the fund to provide higher yields on a
tax-adjusted basis.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on August 31, 1999, was 2.64%, compared
to 2.36% six months ago. The latest yield was the equivalent of a
4.54% taxable yield for investors in the 41.95% combined state and
federal tax bracket. The fund's yields reflect that a portion of the
fund's income was subject to state taxes. Through August 31, 1999, the
fund's six-month total return was 1.33%, compared to 1.22% for the
California tax-free money market funds average, according to IBC
Financial Data, Inc.
Q. WHAT IS YOUR OUTLOOK FOR THE REST OF THE YEAR?
A. There is a good chance that the Fed will take away the last of the
three 0.25 percentage point cuts it implemented in late 1998. Broad
hints of inflation have sparked these concerns, including overall
compensation and unit labor costs, as well as commodity prices. We
also saw a slowdown in non-farm productivity in the second quarter.
Fed Chairman Alan Greenspan made clear in his July Humphrey-Hawkins
testimony before Congress that if productivity slows it may lead to
price pressures arising from tight labor markets. One remaining
question is whether or not the Fed will wait for signs of inflation to
appear before it raises rates a third time. Another consideration that
might influence municipal securities is the Year 2000 issue. As one of
many factors we look at, we'll be paying close attention to this issue
in the months ahead.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks as high a level of
current income, exempt from
federal and California state
personal income tax, as is
consistent with preservation
of capital
FUND NUMBER: 457
TRADING SYMBOL: FSPXX
START DATE: November 27,
1989
SIZE: as of August 31, 1999,
more than $1.2 billion
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in 1992
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 8/31/99 % OF FUND'S INVESTMENTS 2/28/99 % OF FUND'S INVESTMENTS 8/31/98
0 - 30 67.2 73.2 72.0
31 - 90 17.2 3.7 16.6
91 - 180 1.4 15.4 2.2
181 - 397 14.2 7.7 9.2
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
WEIGHTED AVERAGE MATURITY
8/31/99 2/28/99 8/31/98
Spartan California Municipal 59 DAYS 44 Days 41 Days
Money Market Fund
California Tax Free Money 58 DAYS 40 Days 43 Days
Market Funds Average *
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF AUGUST 31, 1999 AS OF FEBRUARY 28, 1999
Variable Rate Demand Notes Variable Rate Demand Notes
(VRDNs) 34.9% (VRDNs) 46.4%
Commercial Paper (including Commercial Paper (including
CP Mode) 17.9% CP Mode) 11.2%
Tender Bonds 4.1% Tender Bonds 0.8%
Municipal Notes 20.5% Municipal Notes 19.9%
Municipal Money Market Funds 20.1% Municipal Money Market Funds 20.5%
Other Investments 2.5% Other Investments 1.2%
Row: 1, Col: 1, Value: 34.9 Row: 1, Col: 1, Value: 46.4
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 17.9 Row: 1, Col: 3, Value: 11.2
Row: 1, Col: 4, Value: 4.1 Row: 1, Col: 4, Value: 0.8
Row: 1, Col: 5, Value: 20.5 Row: 1, Col: 5, Value: 19.9
Row: 1, Col: 6, Value: 20.1 Row: 1, Col: 6, Value: 20.5
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 2.5 Row: 1, Col: 8, Value: 1.1
</TABLE>
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS AUGUST 31, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.0%
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 78.5%
Alameda County Ind. Dev.
Auth. Rev.:
(Edward L. Shimmon, Inc. $ 2,900 $ 2,900
Proj.) Series 1996 A, 3%,
LOC Banque Nationale de
Paris, VRDN (a)(d)
(Meskimen Family Trust Proj.) 5,200 5,200
Series A, 3%, LOC Banque
Nationale de Paris, VRDN
(a)(d)
Series 1998 A, 3%, LOC Wells 4,000 4,000
Fargo Bank NA, San
Francisco, VRDN (a)(d)
Alameda County Multi-family 3,600 3,600
Hsg. Rev. (Berkely Proj.)
Series 1998 A, 3%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
Butte County Office of Ed. 8,300 8,308
TRAN 4% 10/15/99
California Dept. of Veteran 18,360 18,360
Affairs Home Purchase Rev.
Participating VRDN Series
FR/RI A17, 3.15% (Liquidity
Facility Nat'l. Westminster
Bank PLC) (a)(d)(e)
California Dept. of Wtr. 2,024 2,024
Resources Wtr. Sys. Rev.
Series 1, 3.3% 9/8/99, CP
California Econ. Dev. Fin.
Auth.:
(ISO Corp. Proj.):
Series 1998 B, 2.55%, LOC 3,000 3,000
Bank of America NA, VRDN (a)
Series 1998 D, 2.55%, LOC 2,100 2,100
Bank of America NA, VRDN (a)
(Joseph Schmidt Proj.) Series 2,000 2,000
A, 3%, LOC Bank of The West,
VRDN (a)(d)
California Econ. Dev. Fin.
Auth. Ind. Dev. Rev.:
(Calco, LLC Proj.) Series 1,100 1,100
1997, 2.95%, LOC Wells Fargo
Bank NA, San Francisco, VRDN
(a)(d)
(Kuhnash Properties III, 1,500 1,500
LLC/Arkay Plastics, LLC
Proj.) Series 1997, 3.1%,
LOC PNC Bank NA, VRDN (a)(d)
California Ed. Facilities 6,885 6,885
Auth. Rev. Participating
VRDN Series FR/RI 37, 3.15%
(AMBAC Insured) (Liquidity
Facility Bank of New York
NA) (a)(d)(e)
California Gen. Oblig.:
Bonds:
(Veterans) Series BJ, 3.2%, 4,000 4,000
tender 6/1/00 (d)
Series PA 315, 3.55%, tender 3,270 3,270
2/24/00 (Liquidity Facility
Merrill Lynch & Co., Inc.)
(d)(e)(f)
5.5% 10/1/99 1,500 1,503
6% 11/1/99 1,000 1,004
Participating VRDN:
Series 1996 L, 3.04% 6,655 6,655
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(e)
Series SG 84, 3.04% 2,735 2,735
(Liquidity Facility Societe
Generale, France) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: -
continued
Participating VRDN: - continued
Series SG 85, 3.04% $ 5,500 $ 5,500
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 15, 3.16% 5,875 5,875
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 7, 3.16% 2,100 2,100
(Liquidity Facility Societe
Generale, France) (a)(e)
Rfdg. 3.5% 10/1/99 12,130 12,135
3% 10/14/99, CP 2,000 2,000
3.05% 9/8/99, CP 19,400 19,400
3.1% 10/13/99, CP 8,700 8,700
3.25% 10/1/99, CP 2,800 2,800
3.25% 10/7/99, CP 5,400 5,400
3.3% 9/10/99, CP 4,800 4,800
3.3% 10/6/99, CP 8,000 8,000
3.3% 10/12/99, CP 9,900 9,900
California Health Facilities 4,130 4,130
Fin. Auth. Rev.
Participating VRDN Series
1998 140, 2.99% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (a)(e)
California Hsg. Fin. Agcy.
Rev.:
Participating VRDN:
Series 1996 C1, 3.24% 1,925 1,925
(Liquidity Facility Bank of
America NA) (a)(d)(e)
Series 1996 C2, 3.24% 4,075 4,075
(Liquidity Facility Bank of
America NA) (a)(d)(e)
Series 96C0505, 3.19% 1,010 1,010
(Liquidity Facility
Citibank, New York NA)
(a)(d)(e)
Series PA 112, 3.09% 1,844 1,844
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PA 90, 3.09% 1,045 1,045
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PT 14, 3.04% 2,635 2,635
(Liquidity Facility
Commerzbank AG) (a)(e)
Series PT 40A, 3.09% 1,300 1,300
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 40B, 3.09% 13,075 13,075
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
Series PT 40D, 3.09% 7,430 7,430
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy.
Rev.: - continued
Participating VRDN: - continued
Series PT 56, 3.09% $ 190 $ 190
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PT 68, 3.09% 3,220 3,220
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series D, 3.02% 4/30/00 (MBIA 2,300 2,300
Insured) (d)
California Hsg. Fin. Agcy. 13,400 13,400
Single Family Mtg. Series
1999 E, 3.4% 8/1/00 (Cdc
Fdg. Corp. Guaranteed) (d)
California Poll. Cont. Fing.
Auth. Poll. Cont. Rev.:
(Pacific Gas & Elec. Co.):
Series 1997 C, 2.7%, LOC KBC 7,650 7,650
Bank, NV, VRDN (a)(d)
Series D, 2.65%, LOC UBS AG, 2,500 2,500
VRDN (a)
(Southern California Edison 2,900 2,900
Proj.) Series 1986 A, 2.6%,
VRDN (a)
Rfdg. (Pacific Gas & Elec.
Co.):
Series 1996 G, 2.7%, VRDN (a) 3,000 3,000
Series 1997 B, 2.7%, LOC 4,400 4,400
Deutsche Bank AG, VRDN (a)(d)
Series E, 2.55%, LOC Morgan 5,100 5,100
Guaranty Trust Co., NY, VRDN
(a)
California Poll. Cont. Fing. 700 700
Auth. Resource Recovery Rev.
(Atlantic Richfield Co.)
Series 1994 A, 2.75%, VRDN
(a)(d)
California School Cash 32,400 32,586
Reserve Prog. Auth. TRAN
Series 1999 A, 4% 7/3/00
(AMBAC Insured)
California Statewide Cmntys. 7,600 7,600
Dev. Auth. Rev. (Covenant
Retirement Cmnty., Inc.)
Series 1995, 3.125%, LOC
LaSalle Nat'l. Bank,
Chicago, VRDN (a)
California Statewide Cmntys.
Dev. Corp. Rev.:
(American River Packaging) 1,725 1,725
3.1%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Carvin Corp. Proj.) 3.05%, 2,040 2,040
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Duke, Inc. Proj.) Series 1,230 1,230
1996 E, 3.1%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Lynwood Enterprises LLC 2,000 2,000
Proj.) Series 1997 D, 3.1%,
LOC Fleet Nat'l. Bank, VRDN
(a)(d)
(Propak Corp. Proj.) Series 2,020 2,020
1994 B, 3.05%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Rapelli of California, Inc. 2,500 2,500
Proj.) 3.05%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Rix Industries Proj.) Series 1,760 1,760
1996 I, 3.1%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Statewide Cmntys.
Dev. Corp. Rev.: - continued
(Setton Properties, Inc. $ 760 $ 760
Proj.) Series 1995 E, 3.1%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
Chula Vista Ind. Dev. Rev.
Bonds (San Diego Gas &
Elec.) Series C:
2.8% tender 9/9/99, CP mode 11,000 11,000
(d)
3% tender 9/16/99, CP mode (d) 2,100 2,100
Clipper Tax-Exempt Trust Hsg. 3,820 3,820
Fin. Agcy. Participating
VRDN Series 1994 1, 3.39%
(Liquidity Facility State
Street Bank & Trust Co.)
(a)(d)(e)
Contra Costa County TRAN 5% 11,400 11,417
10/1/99
Cucamonga County Wtr. 4,200 4,200
District Participating VRDN
Series FR/RI A32, 3.1%
(Liquidity Facility Bank of
New York NA) (a)(e)
Fairfield Ind. Dev. Auth. 4,400 4,400
(Meyer Cookware Ind. Proj.)
3.05%, LOC Banque Nationale
de Paris, VRDN (a)(d)
Fremont Gen. Oblig. TRAN 3.5% 5,100 5,106
6/30/00
Fresno County Gen. Oblig. 9,000 9,052
TRAN 4% 6/30/00
Garden Grove Hsg. Auth. 6,200 6,200
Multi-family Hsg. Rev.
(Valley View Senior Villas
Proj.) Series 1990 A, 2.8%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
Huntington Beach Gen. Oblig. 9,800 9,806
TRAN 4% 9/30/99
Kern County Gen. Oblig. TRAN 10,200 10,258
4% 6/30/00
Lassen Muni. Util. District 5,435 5,435
Rev. Rfdg. Series 1996 A,
3.2% (FSA Insured) (BPA Cr.
Local de France), VRDN (a)(d)
LaVerne Ind. Dev. Auth. 4,865 4,865
(Paper-Pak Products, Inc.
Proj.) 3%, LOC NationsBank
NA, VRDN (a)(d)
Long Beach Hbr. Rev.:
Participating VRDN Series SG 5,880 5,880
73, 3.09% (Liquidity
Facility Societe Generale,
France) (a)(d)(e)
Series A:
3.1% 10/7/99, CP (d) 2,000 2,000
3.25% 10/6/99, CP (d) 4,900 4,900
Los Angeles County Gen. Oblig.:
TRAN Series 1999 2000, 4% 39,900 40,116
6/30/00
3% 10/14/99, LOC Westdeutsche 8,550 8,550
Landesbank Girozentrale, LOC
Bayerische Landesbank
Girozentrale, CP
3.25% 10/7/99, LOC 5,000 5,000
Westdeutsche Landesbank
Girozentrale, LOC Bayerische
Landesbank Girozentrale, CP
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles County Metro.
Trans. Auth. Rev.
Participating VRDN:
Series SGB 2, 3.16% $ 12,700 $ 12,700
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 3, 3.16% 10,570 10,570
(Liquidity Facility Societe
Generale, France) (a)(e)
Los Angeles County Metro.
Trans. Auth. Sales Tax Rev.
Participating VRDN:
Series FR/RI 30, 3.1% 7,000 7,000
(Liquidity Facility Bank of
New York NA) (a)(e)
Series SG 46, 3.04% 3,600 3,600
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SG 54, 3.04% 3,000 3,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Los Angeles Dept. Arpts. Rev. 2,600 2,600
Participating VRDN Series
SG 61, 3.09% (Liquidity
Facility Societe Generale,
France) (a)(d)(e)
Los Angeles Dept. Wtr. & Pwr. 6,100 6,100
Wtrwks. 3.15% 10/1/99, LOC
Bank of Nova Scotia, LOC
Toronto Dominion Bank, CP
Los Angeles Gen. Oblig. TRAN 22,800 22,919
Series 1999, 4% 6/30/00
Los Angeles Hbr. Dept. Rev.
Participating VRDN:
Series FR/RI 7, 3.15% (BPA 19,800 19,800
Bank of New York NA)
(a)(d)(e)
Series FR/RI A17, 3.2% 2,400 2,400
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series SG 59, 3.09% 8,950 8,950
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Los Angeles Unified School
District:
Bonds Series FR/RI A26, 24,300 24,300
3.35%, tender 10/1/99 (e)(f)
Participating VRDN Series 60, 3,975 3,975
3.04% (Liquidity Facility
Morgan Stanley Dean Witter &
Co.) (a)(e)
Los Angeles Wastewtr. Sys.
Rev.:
Participating VRDN Series SGA 14,000 14,000
26, 3.1% (Liquidity Facility
Societe Generale, France)
(a)(e)
3.25% 10/6/99, LOC UBS AG, 2,500 2,500
LOC Morgan Guaranty Trust
Co., NY, CP
3.3% 1/13/00, LOC UBS AG, LOC 5,400 5,400
Morgan Guaranty Trust Co.,
NY, CP
Marin County Gen. Oblig. 16,000 16,000
Participating VRDN Series
FR/RI A20, 3.1% (Liquidity
Facility Bank of New York
NA) (a)(e)
Merced County Gen. Oblig. 5,800 5,827
TRAN Series 1999 2000, 4%
6/30/00
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Metro. Wtr. District of
Southern California:
Series A:
2.95% 9/9/99, CP $ 1,500 $ 1,500
3.1% 9/3/99, CP 2,000 2,000
3.2% 11/10/99, CP 1,800 1,800
Series B:
2.9% 9/17/99, CP 10,000 10,000
3.1% 10/13/99, CP 15,600 15,600
3.35% 10/20/99, CP 20,500 20,500
Newark Ind. Dev. Auth. Rev. 3,000 3,000
(Gas Tech Proj.) Series 1989
A, 2.9%, LOC UBS AG, VRDN
(a)(d)
Northern California
Transmission Rev.:
Participating VRDN Series 4,600 4,600
FR/RI 16, 3.1% (Liquidity
Facility Bank of New York
NA) (a)(e)
Series B:
2.9% 9/17/99, LOC 14,600 14,600
Westdeutsche Landesbank
Girozentrale, CP
3% 9/8/99, LOC Westdeutsche 6,000 6,000
Landesbank Girozentrale, CP
Oceanside Multi-family Rev. 6,000 6,000
(Lakeridge Apt. Proj.)
Series 1994, 3.45%
(Continental Casualty Co.
Guaranteed), VRDN (a)
Orange County Ctfs. of Prtn. 3,250 3,250
(Sanitation District # 1 to
7 & 11) Series 1990 1992 C,
2.55% (FGIC Insured), VRDN
(a)
Orange County Trans. Auth. 13,100 13,100
3.15% 10/1/99, LOC UBS AG,
CP
Paramount Hsg. Auth. 4,700 4,700
Multi-family Hsg. Rev.
(Century Place Apts. Proj.)
Series 1999 A, 3.05% (Fannie
Mae Guaranteed), VRDN (a)(d)
Pleasant Hill Redev. Agcy. 1,460 1,460
Multi-family Hsg. Rev.
(Chateau III Proj.) Series
1996 A, 3.1%, LOC
Commerzbank AG, VRDN (a)(d)
Riverside County Gen. Oblig. 11,500 11,512
TRAN 4.5% 9/30/99
Riverside County Ind. Dev. 1,320 1,320
Auth. Ind. Dev. Rev.
(Merrick Engineering, Inc.)
2.95%, LOC Wells Fargo Bank
NA, San Francisco, VRDN
(a)(d)
Riverside County School Fing. 4,500 4,522
Auth. Rev. TRAN Series 1999
2000 A, 4% 8/1/00
Sacramento City Unified 10,400 10,405
School District TRAN 3.25%
10/27/99
Sacramento County Gen. Oblig. 17,900 17,901
Bonds Series FR/RI A28,
3.35%, tender 9/30/99 (e)(f)
Sacramento County Office of 8,800 8,820
Ed. TRAN 3.5% 1/21/00
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Sacramento Muni. Util. $ 13,950 $ 13,950
District Elec. Rev. Series
I, 3.25% 10/29/99, LOC
Bayerische Landesbank
Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP
San Bernardino County Ind. 2,300 2,300
Dev. Auth. Rev. (W & H
Voortman, Inc. Proj.) 3.05%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
San Bernardino County Gen.
Oblig. TRAN:
3.75% 9/29/00 4,400 4,410
4.5% 9/30/99 13,300 13,314
San Diego Gen. Oblig. TRAN 2,500 2,503
4.5% 9/30/99
San Diego Multi-Family Hsg. 5,000 5,000
Rev. Rfdg. (Coral Pointe
Apt. Proj.) Series 1993 A,
3.45% (Continental Casualty
Co. Guaranteed), VRDN (a)
San Diego Unified School 3,700 3,728
District TRAN 4.25% 9/29/00
San Diego Wtr. Util. Fund 5,670 5,670
Ctfs. Participating VRDN
Series PT 1076, 3.04% (a)(e)
San Francisco City & County
Participating VRDN:
Series 1996 AA2, 3.24% 1,740 1,740
(Liquidity Facility Bank of
America NA) (a)(e)
Series 1996 AA3, 3.24% 4,210 4,210
(Liquidity Facility Bank of
America NA) (a)(e)
Series 1996 AA4, 3.24% 4,450 4,450
(Liquidity Facility Bank of
America NA) (a)(e)
San Francisco City & County 18,290 18,290
Arpt. Commission Int'l.
Arpt. Rev. Participating
VRDN Series 98 31, 3.04%
(a)(e)
San Francisco City & County 11,300 11,309
Unified School District TRAN
4.5% 9/22/99
San Leandro Multi-family Hsg. 5,000 5,000
Rev. (Carlton Plaza) Series
A, 3.1%, VRDN (a)(d)
San Luis Obispo County Office 10,400 10,431
of Ed. TRAN Series 1998,
3.75% 6/30/00
Santa Barbara County Gen. 2,600 2,603
Oblig. TRAN Series 1998
1999, 4.5% 10/1/99
Santa Clara Unified School 1,000 1,001
District TRAN Series 1998,
4.25% 10/1/99
Santa Clara County Gen. Oblig.:
Participating VRDN Series 9,000 9,000
FR/RI A18, 3.1% (Liquidity
Facility Bank of New York
NA) (a)(e)
TRAN 4.5% 10/1/99 5,200 5,206
Santa Rosa Multi-Family Hsg. 5,850 5,850
Rev. (Quail Run Apts./Santa
Rosa Hsg. Partners) Series
1997 A, 3.1%, LOC US Bank NA
Minnesota, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
South Coast Local Ed. Agcy. $ 3,700 $ 3,718
TRAN Series 1999 A, 4%
6/30/00 (MBIA Insured)
Univ. of California Revs.:
Rfdg. Participating VRDN 20,000 20,000
Series 1997 G, 3.3%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Series A, 2.95% 9/9/99 6,200 6,200
(Liquidity facility Bank of
Montreal, Bank of America
NA), CP
953,023
GUAM - 0.5%
Guam Pwr. Auth. Rev. 5,545 5,545
Participating VRDN Series PA
531, 3.1% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
PUERTO RICO - 0.9%
Puerto Rico Commonwealth Hwy. 6,000 6,000
& Trans. Auth. Trans. Rev.
Participating VRDN Series
ROC II, 3.16% (Liquidity
Facility Commerzbank AG)
(a)(e)
Puerto Rico Elec. Pwr. Auth. 5,000 5,000
Pwr. Rev. Participating VRDN
Series 2 99 3, 3.16%
(Liquidity Facility
Commerzbank AG) (a)(e)
11,000
SHARES (000S)
OTHER - 20.1%
Municipal Central Cash Fund, 243,804 243,804
3.30% (b)(c)
TOTAL INVESTMENT IN $ 1,213,372
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 1,213,372
</TABLE>
SECURITY TYPE ABBREVIATIONS
CP - COMMERCIAL PAPER
TRAN - TAX AND REVENUE
ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(c) The rate quoted is the annualized seven-day yield of the fund at
period end.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
(f) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE COST (000S)
California Gen. Oblig. Bonds 7/2/99 $ 3,270
Series PA 315, 3.55%, tender
2/24/00 (Liquidity Facility
Merrill Lynch & Co., Inc.)
Los Angeles Unified School 7/12/99 $ 24,300
District Bonds Series FR/RI
A26, 3.35%, tender 10/1/99
Sacramento County Gen. Oblig. 7/8/99 $ 17,902
Bonds Series FR/RI A28,
3.35%, tender 9/30/99
OTHER INFORMATION
At the end of the period, restricted securities (excluding 144A
issues) amounted to $45,471,000 or 3.7% of net assets.
INCOME TAX INFORMATION
At February 28, 1999, the fund had a capital loss carryforward of
approximately $602,000 of which $562,000 and $40,000 will expire on
February 28, 2003 and 2006, respectively.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) AUGUST 31, 1999
ASSETS
Investment in securities, at $ 1,213,372
value - See accompanying
schedule
Cash 1,087
Receivable for investments 10
sold
Receivable for fund shares 2,480
sold
Interest receivable 7,110
TOTAL ASSETS 1,224,059
LIABILITIES
Payable for investments $ 9,211
purchased
Payable for fund shares 1,590
redeemed
Distributions payable 146
Accrued management fee 516
Other payables and accrued 10
expenses
TOTAL LIABILITIES 11,473
NET ASSETS $ 1,212,586
Net Assets consist of:
Paid in capital $ 1,213,080
Accumulated net realized gain (494)
(loss) on investments
NET ASSETS, for 1,213,076 $ 1,212,586
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,212,586
(divided by) 1,213,076
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS
SIX
MONTHS ENDED AUGUST 31, 1999
(UNAUDITED)
INTEREST INCOME $ 18,934
EXPENSES
Management fee $ 3,029
Non-interested trustees' 2
compensation
Total expenses before 3,031
reductions
Expense reductions (43) 2,988
NET INTEREST INCOME 15,946
NET REALIZED GAIN (LOSS) ON 108
INVESTMENTS
NET INCREASE IN NET ASSETS $ 16,054
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED AUGUST 31, YEAR ENDED FEBRUARY 28, 1999
1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 15,946 $ 36,524
Net realized gain (loss) 108 23
NET INCREASE (DECREASE) IN 16,054 36,547
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (15,946) (36,524)
from net interest income
Share transactions at net 516,710 1,272,706
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 15,064 35,094
distributions from net
interest income
Cost of shares redeemed (548,716) (1,431,158)
NET INCREASE (DECREASE) IN (16,942) (123,358)
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) (16,834) (123,335)
IN NET ASSETS
NET ASSETS
Beginning of period 1,229,420 1,352,755
End of period $ 1,212,586 $ 1,229,420
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED AUGUST 31, YEARS ENDED FEBRUARY 28,
1999
(UNAUDITED) 1999 1998 1997 1996 G 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment .013 .028 .032 .031 .035 .030
Operations Net interest
income
Less Distributions
From net interest income (.013) (.028) (.032) (.031) (.035) (.030)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C, D 1.33% 2.84% 3.26% 3.18% 3.60% 3.00%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 1,213 $ 1,229 $ 1,353 $ 1,344 $ 1,307 $ 1,163
millions)
Ratio of expenses to average .50% A .50% .45% E .35% E .31% E .28% E
net assets
Ratio of expenses to average .49% A, F .49%F .45% .34% F .31% .28%
net assets after expense
reductions
Ratio of net interest income 2.63% A 2.81% 3.21% 3.14% 3.55% 2.96%
to average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
E FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
G FOR THE YEAR ENDED FEBRUARY 29
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1999 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CA MUNICIPAL MONEY 1.28% 2.53% 15.60% 36.53%
MARKET
California Tax-Free Money 1.22% 2.44% 15.38% 36.18%
Market Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. To measure how the fund's performance stacked up
against its peers, you can compare it to the California tax-free money
market funds average, which reflects the performance of California
tax-free money market funds with similar objectives tracked by IBC
Financial Data, Inc. The past six month average represents a peer
group of 40 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED AUGUST 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CA MUNICIPAL MONEY 2.53% 2.94% 3.16%
MARKET
California Tax-Free Money 2.44% 2.90% 3.13%
Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
8/30/99 5/31/99 3/1/99 11/30/98 8/31/98
California Municipal Money 2.55% 2.57% 2.26% 2.53% 2.52%
Market
California Tax-Free Money 2.40% 2.55% 2.17% 2.45% 2.42%
Market Funds Average
California Municipal Money 4.38% 4.42% 3.88% 4.35% 4.33%
Market Tax-equivalent
Portion of fund's income 21.48% 16.86% 20.53% 13.54% 1.62%
subject to state taxes
California Municipal
Money Market
California Tax-Free
Money Market
Funds Average
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 2.55
Row: 1, Col: 2, Value: 2.4
Row: 2, Col: 1, Value: 2.57
Row: 2, Col: 2, Value: 2.55
Row: 3, Col: 1, Value: 2.26
Row: 3, Col: 2, Value: 2.17
Row: 4, Col: 1, Value: 2.53
Row: 4, Col: 2, Value: 2.45
Row: 5, Col: 1, Value: 2.52
Row: 5, Col: 2, Value: 2.42
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
table above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
California tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1999 federal and state
income tax rate of 41.95%. The fund's yields mentioned above reflect
that a portion of the fund's income was subject to state taxes. A
portion of the fund's income may be subject to the federal alternative
minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
(checkmark)COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes
reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. And there
is no assurance that a money
market fund will maintain a
$1 share price.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Diane McLaughlin)
An interview with Diane McLaughlin, Portfolio Manager of Fidelity
California Municipal Money Market Fund
Q. WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PAST SIX
MONTHS, DIANE?
A. Investors confronted issues that have characterized the U.S.
economy for some time: strong economic growth, tight labor markets and
expectations of inflationary pressures. Consumer confidence was at an
all-time high, prompting strong consumer spending that fueled economic
growth above an annual rate of 3% during the first half of 1999. In
addition, unemployment stayed at historically low levels. Low
unemployment usually causes employers to raise wages to attract or
retain workers, passing on the additional costs in the form of price
increases. However, we have yet to see significant evidence of higher
prices. The consumer price index (CPI) increased only about 2% over
the past year. Wages have started to creep up, but have been largely
offset by increases in productivity. The backdrop at the end of 1998
was similar, but the Federal Reserve Board cut short-term interest
rates three times because of global economic instability and aversion
to risk. However, during the first six months of 1999 it became
apparent that these negative influences had dissipated. With continued
robust economic growth and tight labor markets increasing the
potential for inflation, the Fed felt the need to act pre-emptively by
implementing a 0.25 percentage point hike in the rate banks charge
each other - known as the fed funds target rate - in June. The Fed
raised this rate by 0.25 percentage points again in August - bringing
it to 5.25% at the end of the period - apparently taking away another
of the three rate cuts it had implemented in late 1998.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. In addition to economic fundamentals, the fund's strategy was
dictated by technical factors - issues of supply and demand. In
general, strong demand for short-term California paper dampens yields
on very short-maturity money market instruments such as variable-rate
demand notes and commercial paper. Investors looking to buy these
securities have to pay a premium for the California state tax
exemption. The supply of one-year California exempt notes, however,
outpaces the demand for them, leading issuers to offer yields that are
attractive even to mutual funds that invest in municipal securities
from across the U.S. Throughout the period, I looked for opportunities
in one-year paper. I increased the fund's stake in that sector toward
the end of the period because the supply of one-year paper was
particularly heavy, leading to especially attractive yields. These
purchases increased the average maturity of the fund to 57 days at the
end of the period. In addition, I turned some of my focus - within the
limits set by the fund's prospectus - to out-of-state investments that
offered more appealing after-state-tax yields than state-tax-free
alternatives in the California market. Even though more of
shareholders' income will be taxable at the state level because of
these investments, I pursued this strategy to enable the fund to
provide higher yields on a tax-adjusted basis.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on August 31, 1999, was 2.55%, compared
to 2.24% six months ago. The latest yield was the equivalent of a
4.38% taxable yield for investors in the 41.95% combined state and
federal tax bracket. The fund's yields reflect that a portion of the
fund's income was subject to state taxes. Through August 31, 1999, the
fund's six-month total return was 1.28% compared to 1.22% for the
California tax-free money market funds average, according to IBC
Financial Data, Inc.
Q. WHAT IS YOUR OUTLOOK FOR THE REST OF THE YEAR?
A. There is a good chance that the Fed will take away the last of the
three 0.25 percentage point cuts it implemented in late 1998. Broad
hints of inflation have sparked these concerns, including overall
compensation and unit labor costs, as well as commodity prices. We
also saw a slowdown in non-farm productivity in the second quarter.
Fed Chairman Alan Greenspan made clear in his July Humphrey-Hawkins
testimony before Congress that if productivity slows it may lead to
price pressures arising from tight labor markets. One remaining
question is whether or not the Fed will wait for signs of inflation to
appear before it raises rates a third time. Another consideration that
might influence municipal securities is the Year 2000 issue. As one of
many factors we look at, we'll be paying close attention to this issue
in the months ahead.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks as high a level of
current income, exempt from
federal and California state
personal income tax, as is
consistent with preservation
of capital
FUND NUMBER: 097
TRADING SYMBOL: FCFXX
START DATE: July 7, 1984
SIZE: as of August 31, 1999,
more than $1.5 billion
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in
1992
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 8/31/99 % OF FUND'S INVESTMENTS 2/28/99 % OF FUND'S INVESTMENTS 8/31/98
0 - 30 67.4 74.3 72.4
31 - 90 17.4 5.4 17.0
91 - 180 1.2 12.6 2.3
181 - 397 14.0 7.7 8.3
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
WEIGHTED AVERAGE MATURITY
8/31/99 2/28/99 8/31/98
Fidelity California Municipal 57 DAYS 41 Days 39 Days
Money Market Fund
California Tax Free Money 58 DAYS 40 Days 43 Days
Market Funds Average *
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF AUGUST 31, 1999 AS OF FEBRUARY 28, 1999
Variable Rate Demand Notes Variable Rate Demand Notes
(VRDNs) 38.2% (VRDNs) 47.3%
Commercial Paper (including Commercial Paper (including
CP Mode) 14.5% CP Mode) 13.1%
Tender Bonds 4.6% Tender Bonds 0.6%
Municipal Notes 20.5% Municipal Notes 18.1%
Municipal Money Market Funds 19.7% Municipal Money Market Funds 20.1%
Other Investments 2.5% Other Investments 0.8%
Row: 1, Col: 1, Value: 38.2 Row: 1, Col: 1, Value: 47.3
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 14.5 Row: 1, Col: 3, Value: 13.1
Row: 1, Col: 4, Value: 4.6 Row: 1, Col: 4, Value: 0.6000000000000001
Row: 1, Col: 5, Value: 20.5 Row: 1, Col: 5, Value: 18.1
Row: 1, Col: 6, Value: 19.7 Row: 1, Col: 6, Value: 20.1
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 2.5 Row: 1, Col: 8, Value: 0.8
</TABLE>
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS AUGUST 31, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.0%
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 78.1%
Alameda County Ind. Dev.
Auth. Rev.:
(Edward L. Shimmon, Inc. $ 2,100 $ 2,100
Proj.) Series 1996 A, 3%,
LOC Banque Nationale de
Paris, VRDN (a)(d)
(Meskimen Family Trust Proj.) 2,000 2,000
Series A, 3%, LOC Banque
Nationale de Paris, VRDN
(a)(d)
Rfdg. (Longview Fibre Co.) 1,750 1,750
Series 1988, 3.25%, LOC
ABN-AMRO Bank NV, VRDN (a)
Alameda County Multi-family 2,400 2,400
Hsg. Rev. (Berkely Proj.)
Series 1998 A, 3%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
Butte County Office of Ed. 7,450 7,457
TRAN 4% 10/15/99
California Dept. of Veteran 13,955 13,955
Affairs Home Purchase Rev.
Participating VRDN Series
FR/RI A17, 3.15% (Liquidity
Facility Nat'l. Westminster
Bank PLC) (a)(d)(e)
California Econ. Dev. Fin.
Auth.:
(ISO Corp. Proj.):
Series 1998 A, 2.55%, LOC 1,400 1,400
Bank of America NA, VRDN (a)
Series 1998 B, 2.55%, LOC 3,900 3,900
Bank of America NA, VRDN (a)
(Joseph Schmidt Proj.) Series 1,500 1,500
A, 3%, LOC Bank of The West,
VRDN (a)(d)
California Econ. Dev. Fin. 1,000 1,000
Auth. Ind. Dev. Rev.
(Kuhnash Properties III,
LLC/Arkay Plastics, LLC
Proj.) Series 1997, 3.1%,
LOC PNC Bank NA, VRDN (a)(d)
California Ed. Facilities
Auth. Rev. Participating VRDN:
Series 113, 3.04% (Liquidity 5,020 5,020
Facility Morgan Stanley Dean
Witter & Co.) (a)(e)
Series FR/RI 37, 3.15% (AMBAC 5,200 5,200
Insured) (Liquidity Facility
Bank of New York NA)
(a)(d)(e)
Series PA 542, 3.04% 2,750 2,750
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
California Gen. Oblig.:
Bonds:
(Veterans) Series BJ, 3.2%, 8,155 8,155
tender 6/1/00 (d)
Series PA 315, 3.55%, tender 2,100 2,100
2/24/00 (Liquidity Facility
Merrill Lynch & Co., Inc.)
(d)(e)(f)
Rfdg. 3.5% 10/1/99 11,200 11,205
Participating VRDN:
Series 1996 L, 3.04% 17,365 17,365
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(e)
Series 55, 3.04% (Liquidity 11,980 11,980
Facility Morgan Stanley Dean
Witter & Co.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: -
continued
Participating VRDN: - continued
Series SG 84, 3.04% $ 9,500 $ 9,500
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 15, 3.16% 5,000 5,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 7, 3.16% 2,700 2,700
(Liquidity Facility Societe
Generale, France) (a)(e)
3.05% 9/8/99, CP 20,000 20,000
3.1% 10/13/99, CP 10,300 10,300
3.25% 10/1/99, CP 3,600 3,600
3.3% 9/10/99, CP 5,700 5,700
3.3% 10/6/99, CP 11,000 11,000
3.3% 10/12/99, CP 11,100 11,100
California Health Facilities
Fin. Auth. Rev.:
Participating VRDN:
Series 1998 140, 2.99% 11,665 11,665
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
Series 90, 3.04% (Liquidity 11,295 11,295
Facility Morgan Stanley Dean
Witter & Co.) (a)(e)
(Adventist Health Sys. West):
Series 1998 A, 2.65% (MBIA 5,700 5,700
Insured), LOC California
Teachers Retirement Sys.,
VRDN (a)
Series 1998 C, 2.65% (MBIA 100 100
Insured), LOC California
Teachers Retirement Sys.,
VRDN (a)
(Sutter Health Sys.) Series 3,000 3,000
C, 2.4% (FSA Insured), VRDN
(a)
California Hsg. Fin. Agcy.
Rev.:
Bonds Series D, 3.02% 4/30/00 2,700 2,700
(MBIA Insured) (d)
Participating VRDN:
Series 1996 C1, 3.24% 3,225 3,225
(Liquidity Facility Bank of
America NA) (a)(d)(e)
Series PA 112, 3.09% 1,941 1,941
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PA 58, 3.04% 880 880
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
Series PA 90, 3.09% 375 375
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PT 14, 3.04% 2,645 2,645
(Liquidity Facility
Commerzbank AG) (a)(e)
Series PT 40A, 3.09% 6,700 6,700
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy.
Rev.: - continued
Participating VRDN: - continued
Series PT 40B, 3.09% $ 10,275 $ 10,275
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
Series PT 40D, 3.09% 55 55
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PT 56, 3.09% 150 150
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series FR/RI A2, 3.2% 1,015 1,015
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
(Home Mtg. Rev.) Series 1999 16,600 16,600
J1, 2.95% (MBIA Insured)
(Liquidity Facility Morgan
Guaranty Trust Co., NY) VRDN
(a)(d)
California Hsg. Fin. Agcy. 16,600 16,600
Single Family Mtg. Bonds
Series 1999 E, 3.4% 8/1/00
(Cdc Fdg. Corp. Guaranteed)
(d)
California Poll. Cont. Fing.
Auth. Poll. Cont. Rev.:
Bonds (Southern California 4,400 4,400
Edison Co.) Series 1985 D,
2.8% tender 9/8/99, CP mode
(Pacific Gas & Elec. Co.):
Series 1996 F, 2.65%, LOC 6,900 6,900
Banque Nationale de Paris,
VRDN (a)
Series 1997 C, 2.7%, LOC KBC 9,350 9,350
Bank, NV, VRDN (a)(d)
Rfdg. (Pacific Gas & Elec.
Co.):
Series 1996 C, 2.65%, LOC 3,400 3,400
Bank of America NA, VRDN (a)
Series 1996 G, 2.7%, VRDN (a) 3,000 3,000
Series E, 2.55%, LOC Morgan 500 500
Guaranty Trust Co., NY,
VRDN (a)
California Poll. Cont. Fing. 11,700 11,700
Auth. Resource Recovery Rev.
(Atlantic Richfield Co.)
Series 1994 A, 2.75%, VRDN
(a)(d)
California Poll. Cont. Fing. 1,400 1,400
Auth. Solid Waste Disp. Rev.
(Shell Martinez Refining Co.
Proj.) Series 1996 A, 2.55%,
VRDN (a)(d)
California School Cash 40,600 40,835
Reserve Prog. Auth. TRAN
Series 1999 A, 4% 7/3/00
(AMBAC Insured)
California Statewide Cmntys. 3,000 3,000
Dev. Auth. Rev. (JTF
Enterprises LLC Proj.)
Series 1996 A, 3.1%, LOC
Bank of America NA, VRDN
(a)(d)
California Statewide Cmntys.
Dev. Corp. Rev.:
(Andercraft Prod., Inc.) 600 600
Series 1989, 3.15%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Bro-Co. Gen. Partnership 240 240
Proj.) Series 1990, 3.05%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Statewide Cmntys.
Dev. Corp. Rev.: - continued
(Cordeiro Vault Co., Inc. $ 1,070 $ 1,070
Proj.) Series 1996 M, 3.1%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Eurodesign Cabinets, Inc. 670 670
Proj.) 3.1%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Fulton Properties Ltd., 3,485 3,485
Inc.) Series 1996 F, 3.1%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Lansmont Corp. Proj.) Series 1,000 1,000
1996 G, 3.1%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Lynwood Enterprises LLC 1,400 1,400
Proj.) Series 1997 D, 3.1%,
LOC Fleet Nat'l. Bank, VRDN
(a)(d)
(Multi-family Hsg. Dev./ 1,330 1,330
Evapco, Inc.) Series 1996 K,
3.1%, LOC Bank of America
NA, VRDN (a)(d)
(Peets Coffee & Tea, Inc.) 2,620 2,620
Series 1995 E, 3.05%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Redline Synthetic Oil Corp.) 1,035 1,035
3.1%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Setton Properties, Inc. 2,245 2,245
Proj.) Series 1995 E, 3.1%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Sys. Engineering & Mgmt. 1,470 1,470
Co.) 3.1%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(W&H Voortman, Inc. Proj.) 960 960
Series 1990, 3.1%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Zieman Manufacturing Co. 385 385
Proj.) Series 1990, 3.1%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
California Statewide Dev. 1,200 1,200
Auth. (Sunrise of Moraga)
Series 1997, 3.1%, LOC
Heller Finl., Inc., VRDN
(a)(d)
Chula Vista Ind. Dev. Rev.
Bonds (San Diego Gas & Elec.
) Series C:
2.8% tender 9/9/99, CP mode 10,000 10,000
(d)
3% tender 9/16/99, CP mode (d) 2,400 2,400
Clipper Tax-Exempt Trust Hsg. 2,342 2,342
Fin. Agcy. Participating
VRDN Series 1994 1, 3.39%
(Liquidity Facility State
Street Bank & Trust Co.)
(a)(d)(e)
Contra Costa County TRAN 5% 13,600 13,620
10/1/99
Fairfield Ind. Dev. Auth. 4,500 4,500
(Meyer Cookware Ind. Proj.)
3.05%, LOC Banque Nationale
de Paris, VRDN (a)(d)
Fremont Gen. Oblig. TRAN 3.5% 6,400 6,407
6/30/00
Fresno County Gen. Oblig. 20,000 20,115
TRAN 4% 6/30/00
Garden Grove Hsg. Auth. 1,700 1,700
Multi-family Hsg. Rev.
(Valley View Senior Villas
Proj.) Series 1990 A, 2.8%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Huntington Beach Gen. Oblig. $ 8,650 $ 8,656
TRAN 4% 9/30/99
Kern County Gen. Oblig. TRAN:
4% 6/30/00 12,600 12,672
4.25% 10/1/99 11,800 11,810
Lassen Muni. Util. District 2,765 2,765
Rev. Rfdg. Series 1996 A,
3.2% (FSA Insured) (BPA Cr.
Local de France), VRDN (a)(d)
Long Beach Gen. Oblig. TRAN 8,500 8,507
Series 1989 1999, 4% 10/5/99
Long Beach Hbr. Rev.:
Participating VRDN:
Series FR/RI A7, 3.15% 9,900 9,900
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
Series SG 73, 3.09% 3,000 3,000
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Series A, 3.25% 10/6/99, CP 11,600 11,600
(d)
Los Angeles County Gen. Oblig.:
TRAN Series 1999 2000, 4% 31,200 31,370
6/30/00
3% 10/14/99, LOC Westdeutsche 8,100 8,100
Landesbank Girozentrale, LOC
Bayerische Landesbank
Girozentrale, CP
Los Angeles County Metro.
Trans. Auth. Rev.
Participating VRDN:
Series SGB 2, 3.16% 26,850 26,850
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 3, 3.16% 5,500 5,500
(Liquidity Facility Societe
Generale, France) (a)(e)
Los Angeles County Metro.
Trans. Auth. Sales Tax Rev.:
Participating VRDN:
Series FR/RI 30, 3.1% 5,960 5,960
(Liquidity Facility Bank of
New York NA) (a)(e)
Series SG 46, 3.04% 2,930 2,930
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SG 54, 3.04% 2,525 2,525
(Liquidity Facility Societe
Generale, France) (a)(e)
Series A, 2.9% 9/17/99, LOC 6,608 6,608
Bayerische Hypo-und
Vereinsbank AG, LOC Canadian
Imperial Bank of Commerce, CP
Los Angeles Dept. Arpts. Rev. 3,400 3,400
Participating VRDN Series
SG 61, 3.09% (Liquidity
Facility Societe Generale,
France) (a)(d)(e)
Los Angeles Dept. Wtr. & Pwr. 7,600 7,600
Wtrwks. 3.15% 10/1/99, LOC
Bank of Nova Scotia, LOC
Toronto Dominion Bank, CP
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles Gen. Oblig. TRAN $ 27,200 $ 27,342
Series 1999, 4% 6/30/00
Los Angeles Hbr. Dept. Rev.
Participating VRDN:
Series FR/RI 7, 3.15% (BPA 11,185 11,185
Bank of New York NA)
(a)(d)(e)
Series FR/RI A17, 3.2% 3,000 3,000
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series SG 59, 3.09% 4,725 4,725
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Los Angeles Unified School
District:
Bonds: Series FR/RI A26, 40,500 40,500
3.35%, tender 10/1/99 (e)(f)
Series 1999 C, 4% 7/1/00 7,715 7,756
Participating VRDN Series 60, 3,600 3,600
3.04% (Liquidity Facility
Morgan Stanley Dean Witter &
Co.) (a)(e)
TRAN Series 1999 2000, 4% 4,000 4,022
6/30/00
Los Angeles Wastewtr. Sys.
Rev.:
Participating VRDN Series SGA 2,970 2,970
26, 3.1% (Liquidity Facility
Societe Generale, France)
(a)(e)
3% 10/14/99, LOC UBS AG, LOC 5,000 5,000
Morgan Guaranty Trust Co.,
NY, CP
3.25% 10/6/99, LOC UBS AG, 2,500 2,500
LOC Morgan Guaranty Trust
Co., NY, CP
3.25% 10/7/99, LOC UBS AG, 7,500 7,500
LOC Morgan Guaranty Trust
Co., NY, CP
3.3% 1/13/00, LOC UBS AG, LOC 6,500 6,500
Morgan Guaranty Trust Co.,
NY, CP
Marin County Gen. Oblig. 19,280 19,280
Participating VRDN Series
FR/RI A20, 3.1% (Liquidity
Facility Bank of New York
NA) (a)(e)
Merced County Gen. Oblig. 4,700 4,722
TRAN Series 1999 2000, 4%
6/30/00
Metro. Wtr. District of
Southern California:
Series A, 3.2% 10/8/99, CP 8,200 8,200
Series B:
3.1% 10/13/99, CP 6,400 6,400
3.35% 10/19/99, CP 25,200 25,200
Northern California
Transmission Rev.:
Participating VRDN Series 5,000 5,000
FR/RI 16, 3.1% (Liquidity
Facility Bank of New York
NA) (a)(e)
Series B, 2.9% 9/17/99, LOC 18,000 18,000
Westdeutsche Landesbank
Girozentrale, CP
Oceanside Multi-family Rev. 6,700 6,700
(Lakeridge Apt. Proj.)
Series 1994, 3.45%
(Continental Casualty Co.
Guaranteed), VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Ontario Ind. Dev. Auth. Rev. $ 2,400 $ 2,400
(Safari Land Proj.) Series
1989, 2.85%, VRDN (a)(d)
Orange County Ctfs. of Prtn. 13,600 13,600
(Sanitation District # 1 to
7 & 11) Series 1990 1992 C,
2.55% (FGIC Insured), VRDN
(a)
Orange County Trans. Auth. 16,100 16,100
3.15% 10/1/99, LOC UBS AG, CP
Oxnard Redev. Agcy. Ctfs. of 3,195 3,195
Prtn. (Channel Islands Bus.
Ctr. Proj.) 3.675%, LOC
Wells Fargo Bank NA, San
Francisco, VRDN (a)
Paramount Hsg. Auth. 5,800 5,800
Multi-family Hsg. Rev.
(Century Place Apts. Proj.)
Series 1999 A, 3.05% (Fannie
Mae Guaranteed), VRDN (a)(d)
Pittsburg Multi-family Mtg. 7,900 7,900
Rev. (Fountain Plaza Apt.)
3.2% (Fannie Mae
Guaranteed), VRDN (a)
Pleasant Hill Redev. Agcy. 710 710
Multi-family Hsg. Rev.
(Chateau III Proj.) Series
1996 A, 3.1%, LOC
Commerzbank AG, VRDN (a)(d)
Port of Oakland Port Rev.
Participating VRDN:
Series FR/RI A1, 3.15% 3,400 3,400
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series FR/RI A24, 3.15% 11,925 11,925
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Riverside County Gen. Oblig. 17,500 17,518
TRAN 4.5% 9/30/99
Riverside County Ind. Dev. 885 885
Auth. Ind. Dev. Rev.
(Merrick Engineering, Inc.)
2.95%, LOC Wells Fargo Bank
NA, San Francisco, VRDN
(a)(d)
Riverside County School Fing. 5,500 5,527
Auth. Rev. TRAN Series 1999
2000 A, 4% 8/1/00
Sacramento City Unified 9,600 9,604
School District TRAN 3.25%
10/27/99
Sacramento County Gen. Oblig. 22,100 22,101
Bonds Series FR/RI A28,
3.35%, tender 9/30/99 (e)(f)
Sacramento County Office of 9,200 9,221
Ed. TRAN 3.5% 1/21/00
Sacramento Muni. Util. 4,000 4,000
District Elec. Rev.
Participating VRDN Series
SGB 4, 3.16% (Liquidity
Facility Societe Generale,
France) (a)(e)
San Bernardino County Ind. 3,000 3,000
Dev. Auth. Rev. (McClain
Citrus, Inc. Proj.) 3.05%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
San Bernardino County Gen.
Oblig. TRAN:
3.75% 9/29/00 5,600 5,613
4.5% 9/30/99 8,300 8,310
San Diego County Gen. Oblig. 2,700 2,703
TRAN 4.5% 9/30/99
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Diego County Reg'l. $ 5,900 $ 5,900
Trans. Commission Sales Tax
Rev. Series A, 3.25% 10/7/99
(Liquidity Facility Morgan
Guaranty Trust Co., NY), CP
San Diego Multi-Family Hsg. 3,265 3,265
Rev. Rfdg. (Coral Pointe
Apt. Proj.) Series 1993 A,
3.45% (Continental Casualty
Co. Guaranteed), VRDN (a)
San Diego Unified School
District TRAN:
4.25% 9/29/00 4,600 4,635
4.5% 10/1/99 5,210 5,217
San Diego Wtr. Util. Fund 10,000 10,000
Ctfs. Participating VRDN
Series PT 1076, 3.04% (a)(e)
San Francisco City & County
Participating VRDN:
Series 1996 AA 1, 3.24% 3,775 3,775
(Liquidity Facility Bank of
America NA) (a)(e)
Series 1996 AA2, 3.24% 2,240 2,240
(Liquidity Facility Bank of
America NA) (a)(e)
San Francisco City & County 21,000 21,000
Arpt. Commission Int'l.
Arpt. Rev. Participating
VRDN Series 98 31, 3.04%
(a)(e)
San Francisco City & County 10,075 10,075
Parking Meter Rev.
Participating VRDN Series
1996 A, 3.04% (Liquidity
Facility Bank of America NA)
(a)(e)
San Francisco City & County
Redev. Agcy. Participating
VRDN:
Series 1997 T, 3.04% 3,905 3,905
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(e)
Series PT 125, 3.04% 3,180 3,180
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
San Francisco City & County 13,500 13,500
Redev. Multi-family Hsg.
(Third & Mission) Series
1999 C, 2.8%, LOC Bayerische
Hypo-und Vereinsbank AG,
VRDN (a)(d)
San Francisco City & County 10,700 10,708
Unified School District TRAN
4.5% 9/22/99
San Joaquin Hills Trans. 3,940 3,940
Corridor Agcy. Rfdg.
Participating VRDN Series PT
137, 3.04% (Liquidity
Facility Commerzbank AG)
(a)(e)
San Jose Multi-Family Hsg.
Rev.:
(Almaden Lake Village Apt. 10,000 10,000
Assoc.) Series 1997 A,
2.95%, LOC Bank of America
NA, VRDN (a)(d)
(Carlton Plaza) Series 1998 4,000 4,000
A, 3.1%, LOC Commerzbank AG,
VRDN (a)(d)
(Siena Ranaissance Apts.) 6,000 6,000
Series 1996 A, 2.95%, LOC
Key Bank, NA, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Jose Redev. Agcy. $ 3,400 $ 3,400
Participating VRDN Series PA
42I, 3.04% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
San Leandro Multi-family Hsg. 3,220 3,220
Rev. (Carlton Plaza) Series
A, 3.1%, VRDN (a)(d)
San Luis Obispo County Office 12,475 12,512
of Ed. TRAN Series 1998,
3.75% 6/30/00
Santa Barbara County Gen. 2,600 2,603
Oblig. TRAN Series 1998
1999, 4.5% 10/1/99
Santa Clara Unified School 1,000 1,001
District TRAN Series 1998,
4.25% 10/1/99
Santa Clara County Gen. Oblig.:
Participating VRDN Series 11,000 11,000
FR/RI A18, 3.1% (Liquidity
Facility Bank of New York
NA) (a)(e)
TRAN 4.5% 10/1/99 15,815 15,832
Santa Rosa Multi-Family Hsg. 1,750 1,750
Rev. (Quail Run Apts./Santa
Rosa Hsg. Partners) Series
1997 A, 3.1%, LOC US Bank NA
Minnesota, VRDN (a)(d)
South Coast Local Ed. Agcy. 4,480 4,502
TRAN Series 1999 A, 4%
6/30/00 (MBIA Insured)
Southern California Pub. Pwr. 9,300 9,300
Auth. Pwr. Proj. Rev.
Participating VRDN Series SG
35, 3.04% (Liquidity
Facility Societe Generale,
France) (a)(e)
Univ. of California Revs.:
Participating VRDN Series PA 2,000 2,000
529, 3.04% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
Rfdg. Participating VRDN 13,430 13,430
Series 1997 G, 3.3%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Series A:
2.95% 9/9/99 (Liquidity 6,800 6,800
Facility Bank of Montreal,
Bank of America NA), CP
3.3% 9/8/99, CP 5,300 5,300
Vista City Ind. Dev. Auth. 1,580 1,580
Ind. Dev. Rev. (Desalination
Sys., Inc.) Series 1995, 3%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
1,199,274
GUAM - 0.4%
Guam Pwr. Auth. Rev. 6,500 6,500
Participating VRDN Series PA
531, 3.1% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PUERTO RICO - 1.8%
Puerto Rico Commonwealth $ 5,000 $ 5,000
Participating VRDN 3.02%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
Puerto Rico Commonwealth Hwy. 3,210 3,210
& Trans. Auth. Hwy. Rev.
Participating VRDN Series ML
PA 507, 3% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
Puerto Rico Commonwealth Hwy. 6,100 6,100
& Trans. Auth. Trans. Rev.
Participating VRDN Series
ROC II, 3.16% (Liquidity
Facility Commerzbank AG)
(a)(e)
Puerto Rico Elec. Pwr. Auth.
Pwr. Rev. Participating VRDN:
Series 2 99 3, 3.16% 5,400 5,400
(Liquidity Facility
Commerzbank AG) (a)(e)
Series SGA 43, 3.07% 7,400 7,400
(Liquidity Facility Societe
Generale, France) (a)(e)
27,110
SHARES (000S)
OTHER - 19.7%
Municipal Central Cash Fund, 301,608 301,608
3.30% (b)(c)
TOTAL INVESTMENT IN $ 1,534,492
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 1,534,492
</TABLE>
SECURITY TYPE ABBREVIATIONS
CP - COMMERCIAL PAPER
TRAN - TAX AND REVENUE
ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(c) The rate quoted is the annualized seven-day yield of the fund at
period end.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
(f) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE COST (000S)
California Gen. Oblig. Bonds 7/2/99 $ 2,100
Series PA 315, 3.55%, tender
2/24/00 (Liquidity Facility
Merrill Lynch & Co., Inc.)
Los Angeles Unified School 7/12/99 $ 40,500
District Bonds Series FR/RI
A26, 3.35%, tender 10/1/99
Sacramento County Gen. Oblig. 7/8/99 $ 22,102
Bonds Series FR/RI A28,
3.35%, tender 9/30/99
OTHER INFORMATION
At the end of the period, restricted securities (excluding 144A
issues) amounted to $64,701,000 or 4.2% of net assets.
INCOME TAX INFORMATION
At February 28, 1999, the fund had a capital loss carryforward of
approximately $491,000 of which $446,000, $7,000, $18,000 and $20,000
will expire on February 28, 2003, 2005, 2006 and 2007, respectively.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) AUGUST 31, 1999
ASSETS
Investment in securities, at $ 1,534,492
value - See accompanying
schedule
Cash 20
Receivable for fund shares 26,193
sold
Interest receivable 8,578
Prepaid expenses 19
TOTAL ASSETS 1,569,302
LIABILITIES
Payable for investments $ 10,315
purchased
Payable for fund shares 17,756
redeemed
Distributions payable 64
Accrued management fee 477
Other payables and accrued 279
expenses
TOTAL LIABILITIES 28,891
NET ASSETS $ 1,540,411
Net Assets consist of:
Paid in capital $ 1,540,774
Accumulated undistributed net (363)
realized gain (loss) on
investments
NET ASSETS, for 1,540,795 $ 1,540,411
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,540,411
(divided by) 1,540,795
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS
SIX
MONTHS ENDED AUGUST 31, 1999
INTEREST INCOME $ 22,109
EXPENSES
Management fee $ 2,697
Transfer agent fees 1,094
Accounting fees and expenses 85
Non-interested trustees' 2
compensation
Custodian fees and expenses 19
Registration fees 93
Audit 14
Legal 2
Miscellaneous 28
Total expenses before 4,034
reductions
Expense reductions (12) 4,022
NET INTEREST INCOME 18,087
NET REALIZED GAIN (LOSS) ON 128
INVESTMENTS
NET INCREASE (DECREASE) IN $ 18,215
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions
Custodian credits $ 6
Transfer agent credits 6
$ 12
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED AUGUST 31, YEAR ENDED FEBRUARY 28, 1999
1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 18,087 $ 30,238
Net realized gain (loss) 128 (18)
NET INCREASE (DECREASE) IN 18,215 30,220
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (18,087) (30,238)
from net interest income
Share transactions Net 3,264,908 5,945,037
proceeds from sales of shares
Reinvestment of distributions 17,667 29,603
Cost of shares redeemed (3,096,522) (5,596,173)
NET INCREASE (DECREASE) IN 186,053 378,467
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 186,181 378,449
IN NET ASSETS
NET ASSETS
Beginning of period 1,354,230 975,781
End of period $ 1,540,411 $ 1,354,230
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED AUGUST 31, YEARS ENDED FEBRUARY 28,
1999
(UNAUDITED) 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from investment .013 .027 .030 .029 .032 .026
Operations Net interest
income
Less Distributions
From net interest income (.013) (.027) (.030) (.029) (.032) (.026)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 1.28% 2.71% 3.07% 2.90% 3.21% 2.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 1,540 $ 1,354 $ 976 $ 820 $ 733 $ 675
millions)
Ratio of expenses to average .57% A .59% .62% .62% .64% .62%
net assets
Ratio of expenses to average .56% A, D .59% .61% D .61% D .64% .62%
net assets after expense
reductions
Ratio of net interest income 2.53% A 2.66% 3.02% 2.86% 3.17% 2.58%
to average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
E FOR THE YEAR ENDED FEBRUARY 29
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1999 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan California Municipal Income Fund (the income fund) is a fund
of Fidelity California Municipal Trust. Spartan California Municipal
Money Market Fund and Fidelity California Municipal Money Market Fund
(the money market funds) are funds of Fidelity California Municipal
Trust II. Each trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company. Fidelity California Municipal Trust and Fidelity California
Municipal Trust II (the trusts) are organized as a Massachusetts
business trust and a Delaware business trust, respectively. Each fund
is authorized to issue an unlimited number of shares. The financial
statements have been prepared in conformity with generally accepted
accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements.
Each fund may be affected by economic and political developments in
the state of California. The following summarizes the significant
accounting policies of the income fund and the money market funds:
SECURITY VALUATION.
INCOME FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Securities
(including restricted securities) for which quotations are not readily
available are valued at their fair value as determined
in good faith under consistently applied procedures under the general
supervision of the Board of Trustees. Short-term securities with
remaining maturities of sixty days or less for which quotations are
not readily available are valued at amortized cost or original cost
plus accrued interest, both of which approximate current value.
MONEY MARKET FUNDS. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. For the money market funds, accretion of discount represents
unrealized gain until realized at the time of a security disposition
or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
to shareholders from realized capital gains on investments, if any,
are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, market discount, capital loss
carryforwards and losses deferred due to wash sales and futures. The
income fund also utilized earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net interest income and
realized and unrealized gain (loss). Accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission (the SEC), the funds may invest
in the Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc. (FIMM), an affiliate of Fidelity
Management & Research Company (FMR). The Cash Fund is an open-end
money market fund available only to investment companies and other
accounts managed by FMR and its affiliates. The Cash Fund seeks
preservation of capital, liquidity, and current income by investing in
high-quality, short-term municipal securities of various states and
municipalities. Income distributions from the Cash Fund are declared
daily and paid monthly from net interest income. Income distributions
earned by the funds are recorded as interest income in the
accompanying financial statements.
WHEN-ISSUED SECURITIES. Each fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. Each fund may receive compensation for interest forgone in
the purchase of a when-issued security. With respect to purchase
commitments, each fund identifies securities as segregated in its
records with a value at least equal to the amount of the commitment.
Losses may arise due to changes in the market value of the underlying
securities, if the counterparty does not perform under the contract,
or if the issuer does not issue the securities due to political,
economic, or other factors.
2. OPERATING POLICIES -
CONTINUED
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. Information regarding restricted securities is included
at the end of each applicable fund's schedule of investments.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $268,231,000 and $296,275,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the funds' investment adviser for the income fund
and Fidelity California Municipal Money Market Fund, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus
a fixed individual fund fee rate applied to the average net assets of
each fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from 0.1100% to 0.3700% for the
period. The annual individual fund fee rate is 0.25%. In the event
that these rates were lower than the contractual rates in effect
during the period, FMR voluntarily implemented the above rates, as
they resulted in the same or a lower management fee. For the period,
the management fees were equivalent to annualized rates of 0.38% of
average net assets for the income fund and Fidelity California
Municipal Money Market Fund.
As Spartan California Municipal Money Market Fund's investment
adviser, FMR pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest,
taxes, brokerage commissions and extraordinary expenses. FMR receives
a fee that is computed daily at an annual rate of 0.50% of the fund's
average net assets. The management fee paid to FMR by the fund is
reduced by an amount equal to the fees and expenses paid by the fund
to the non-interested Trustees.
FMR also bears the cost of providing shareholder services to Spartan
California Municipal Money Market Fund. To offset the cost of
providing these services, FMR or its affiliates collected certain
transaction fees from shareholders which amounted to $5,000 for the
period.
SUB-ADVISER FEE. As the money market and the income (effective January
1, 1999) funds' investment sub-adviser, FIMM, a wholly owned
subsidiary of FMR, receives a fee from FMR of 50% of the management
fee payable to FMR. The fee is paid prior to any voluntary expense
reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. Effective June 14, 1999 for the
income fund and June 21, 1999 for Fidelity California Municipal Money
Market Fund, Citibank, N.A.(Citibank) replaced UMB Bank, n.a.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
as the custodian, transfer agent and shareholder servicing agent for
the funds. Citibank has entered into a sub-contract with Fidelity
Service Company, Inc. (FSC), an affiliate of FMR, under which FSC
performs the activities associated with the funds' transfer and
shareholder servicing agent and accounting functions. The funds pay
account fees and asset-based fees that vary according to account size
and type of account. FSC pays for typesetting, printing and mailing of
all shareholder reports, except proxy statements. The accounting fee
is based on the level of average net assets for the month plus
out-of-pocket expenses.
For the period, the transfer agent fees were equivalent to an
annualized rate of 0.08% and 0.15% of average net assets for the
income fund and Fidelity California Municipal Money Market Fund,
respectively.
MONEY MARKET INSURANCE. Pursuant to an Exemptive Order issued by the
SEC, the money market funds, along with other money market funds
advised by FMR or its affiliates, have entered into insurance
agreements with FIDFUNDS Mutual Limited (FIDFUNDS), an affiliated
mutual insurance company, effective January 1, 1999. FIDFUNDS provides
limited coverage for certain loss events including issuer default as
to payment of principal or interest and bankruptcy or insolvency of a
credit enhancement provider. The insurance does not cover losses
resulting from changes in interest rates, ratings downgrades or other
market conditions. Each fund may be subject to a special assessment of
up to approximately 2.5 times the fund's annual gross premium if
covered losses exceed certain levels. Fidelity California Municipal
Money Market Fund paid premiums of $57,000 to FIDFUNDS, which are
being amortized over one year. FMR has borne the cost of Spartan
California Municipal Money Market Fund premium payable to FIDFUNDS.
5. EXPENSE REDUCTIONS.
The income fund and Fidelity California Municipal Money Market Fund
have entered into arrangements with their custodian and transfer agent
whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of each applicable fund's expenses. For the
period, the reductions under these arrangements are shown under the
caption "Other Information" on each applicable fund's Statement of
Operations.
FMR has entered into an arrangement on behalf of Spartan California
Municipal Money Market Fund with the fund's custodian and transfer
agent whereby credits realized as a result of uninvested cash balances
were used to reduce a portion of the fund's expenses. During the
period the fund's expenses were reduced by $43,000 under these
arrangements.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity Automated Service Telephone provides a single toll-free
number to access account balances, positions, quotes and trading. It's
easy to navigate the service, and on your first call, the system will
help you create a personal identification number (PIN) for security.
(PHONE_GRAPHIC)FIDELITY AUTOMATED
SERVICE TELEPHONE (FASTSM)
(PHONE_GRAPHIC)1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0To speak to a Fidelity representative.
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)FIDELITY ON-LINE XPRESSSM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A
GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT
MONEY MARKET FUNDS WILL BE
ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY
MARKET FUND IS NOT INSURED
OR GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE
PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF
ANY SALES CHARGES.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19200 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments Money
Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Boyce I. Greer, Vice President -
MONEY MARKET FUNDS
Dwight D. Churchill, Vice President -
INCOME FUND
Diane M. McLaughlin, Vice President -
MONEY MARKET FUNDS
Christine J. Thompson, Vice President -
INCOME FUND
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Stanley N. Griffith, Assistant
Vice President
John H. Costello, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
CMS-SANN-1099 85811
1.536892.102
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson -
MONEY MARKET FUNDS
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
Citibank, N.A.
New York, NY
and
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
Citibank, N.A.
New York, NY
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118 for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FASTSM) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
