SPARTAN(REGISTERED TRADEMARK)
CALIFORNIA MUNICIPAL
FUNDS
AND
FIDELITY (REGISTERED TRADEMARK)
CALIFORNIA MUNICIPAL
MONEY MARKET FUND
ANNUAL REPORT
FEBRUARY 29, 2000
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
28 FINANCIAL STATEMENTS
SPARTAN CALIFORNIA MUNICIPAL
MONEY MARKET FUND
32 PERFORMANCE
34 FUND TALK: THE MANAGER'S
OVERVIEW
36 INVESTMENT CHANGES
37 INVESTMENTS
44 FINANCIAL STATEMENTS
FIDELITY CALIFORNIA MUNICIPAL
MONEY MARKET FUND
48 PERFORMANCE
50 FUND TALK: THE MANAGER'S
OVERVIEW
52 INVESTMENT CHANGES
53 INVESTMENTS
64 FINANCIAL STATEMENTS
NOTES 68 NOTES TO THE FINANCIAL
STATEMENTS
REPORT OF INDEPENDENT 72 THE AUDITORS' OPINION.
ACCOUNTANTS
PROXY VOTING RESULTS 73
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
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 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
Other third party marks appearing herein are the property of their
respective owners.
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.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
In February, the Dow Jones Industrial Average closed below 10,000 for
the first time in 10 months - 16% below its high set in January. A
deeper drop was avoided by a rally late in the period. Meanwhile, the
technology-focused NASDAQ Index continued its record-setting ascent,
while the bellwether 30-year Treasury benefited slightly as a haven
from volatile blue chips and the U.S. Treasury's decision to reduce
long bond supply.
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 1-800-544-6666, 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 five year and past 10
year total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 29, PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
2000
SPARTAN CA MUNICIPAL INCOME -2.28% 34.43% 89.25%
LB California Municipal Bond -2.44% 34.34% n/a
California Municipal Debt -4.88% 26.99% 82.64%
Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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 one year average represents a peer group of 108 mutual
funds. These benchmarks include reinvested dividends and capital
gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 29, PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
2000
SPARTAN CA MUNICIPAL INCOME -2.28% 6.10% 6.59%
LB California Municipal Bond -2.44% 6.08% n/a
California Municipal Debt -4.88% 4.87% 6.18%
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 CA Muni Income LB Municipal Bond
00091 LB015
1990/02/28 10000.00 10000.00
1990/03/31 10022.12 10003.00
1990/04/30 9879.25 9930.58
1990/05/31 10116.70 10147.36
1990/06/30 10209.69 10236.56
1990/07/31 10367.45 10387.04
1990/08/31 10223.95 10236.22
1990/09/30 10264.53 10242.05
1990/10/31 10397.16 10427.84
1990/11/30 10595.13 10637.55
1990/12/31 10635.22 10683.82
1991/01/31 10731.79 10827.20
1991/02/28 10771.41 10921.39
1991/03/31 10783.21 10925.32
1991/04/30 10910.37 11070.63
1991/05/31 11018.76 11169.05
1991/06/30 11021.22 11157.99
1991/07/31 11160.14 11293.90
1991/08/31 11260.14 11442.64
1991/09/30 11380.83 11591.62
1991/10/31 11521.36 11695.94
1991/11/30 11523.08 11728.58
1991/12/31 11715.63 11980.27
1992/01/31 11778.73 12007.59
1992/02/29 11798.82 12011.43
1992/03/31 11792.39 12015.87
1992/04/30 11885.72 12122.81
1992/05/31 12033.65 12265.50
1992/06/30 12221.47 12471.31
1992/07/31 12599.96 12845.20
1992/08/31 12425.22 12719.96
1992/09/30 12488.62 12803.15
1992/10/31 12257.13 12677.30
1992/11/30 12543.05 12904.35
1992/12/31 12736.55 13036.10
1993/01/31 12888.58 13187.71
1993/02/28 13477.94 13664.71
1993/03/31 13318.11 13520.27
1993/04/30 13437.58 13656.69
1993/05/31 13515.79 13733.44
1993/06/30 13733.61 13962.66
1993/07/31 13733.59 13980.95
1993/08/31 14068.48 14272.03
1993/09/30 14246.36 14434.59
1993/10/31 14270.68 14462.45
1993/11/30 14123.34 14335.03
1993/12/31 14447.48 14637.65
1994/01/31 14611.01 14804.81
1994/02/28 14207.32 14421.36
1994/03/31 13480.79 13834.12
1994/04/30 13537.41 13951.44
1994/05/31 13630.62 14072.40
1994/06/30 13491.33 13986.41
1994/07/31 13766.29 14242.79
1994/08/31 13813.68 14292.07
1994/09/30 13601.73 14082.26
1994/10/31 13268.03 13832.16
1994/11/30 12942.17 13582.07
1994/12/31 13164.30 13881.01
1995/01/31 13636.03 14277.73
1995/02/28 14077.88 14692.93
1995/03/31 14222.47 14861.75
1995/04/30 14225.17 14879.29
1995/05/31 14702.67 15354.09
1995/06/30 14511.90 15220.51
1995/07/31 14644.59 15364.80
1995/08/31 14815.87 15559.62
1995/09/30 14947.77 15658.11
1995/10/31 15199.40 15885.78
1995/11/30 15501.70 16149.33
1995/12/31 15688.34 16304.52
1996/01/31 15783.84 16427.62
1996/02/29 15662.01 16316.74
1996/03/31 15422.85 16108.21
1996/04/30 15372.39 16062.62
1996/05/31 15361.38 16056.20
1996/06/30 15564.69 16231.05
1996/07/31 15716.47 16378.75
1996/08/31 15744.79 16374.82
1996/09/30 15962.73 16604.07
1996/10/31 16171.09 16791.86
1996/11/30 16516.20 17099.15
1996/12/31 16434.34 17027.33
1997/01/31 16463.78 17059.52
1997/02/28 16626.16 17216.12
1997/03/31 16388.09 16986.63
1997/04/30 16528.70 17128.81
1997/05/31 16799.57 17386.43
1997/06/30 16983.42 17571.59
1997/07/31 17541.79 18058.33
1997/08/31 17326.44 17889.12
1997/09/30 17555.26 18101.46
1997/10/31 17642.22 18217.85
1997/11/30 17755.19 18324.98
1997/12/31 18046.18 18592.34
1998/01/31 18264.70 18784.21
1998/02/28 18271.18 18789.85
1998/03/31 18227.20 18806.38
1998/04/30 18125.32 18721.56
1998/05/31 18438.69 19017.93
1998/06/30 18481.15 19092.86
1998/07/31 18523.74 19140.78
1998/08/31 18853.21 19436.50
1998/09/30 19151.08 19678.68
1998/10/31 19147.48 19678.29
1998/11/30 19202.49 19747.36
1998/12/31 19229.86 19797.12
1999/01/31 19457.81 20032.51
1999/02/28 19367.71 19944.97
1999/03/31 19425.46 19972.69
1999/04/30 19452.20 20022.43
1999/05/31 19304.96 19906.50
1999/06/30 18996.65 19619.84
1999/07/31 19054.58 19691.26
1999/08/31 18889.64 19533.73
1999/09/30 18913.98 19541.74
1999/10/31 18652.27 19329.90
1999/11/30 18870.96 19535.57
1999/12/31 18692.14 19390.03
2000/01/31 18655.87 19305.69
2000/02/29 18925.24 19529.63
IMATRL PRASUN SHR__CHT 20000229 20000313 102643 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan California Municipal Income Fund on February 28,
1990. As the chart shows, by February 29, 2000, the value of the
investment would have grown to $18,925 - an 89.25% 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 $19,530 - a 95.30%
increase.
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.
(checkmark)
TOTAL RETURN COMPONENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEAR ENDED FEBRUARY 29, YEARS ENDED FEBRUARY 28, YEAR ENDED FEBRUARY 29,
2000 1999 1998 1997 1996
Dividend returns 4.46% 4.73% 5.23% 5.37% 5.86%
Capital returns -6.74% 1.27% 4.66% 0.79% 5.39%
Total returns -2.28% 6.00% 9.89% 6.16% 11.25%
</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 FEBRUARY 29, PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
2000
Dividends per share 4.46(cents) 27.77(cents) 55.45(cents)
Annualized dividend rate 4.90% 4.81% 4.68%
30-day annualized yield 4.96% - -
30-day annualized 8.54% - -
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
$11.46 over the past one month, $11.58 over the past six months and
$11.86 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 2000 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
At the outset of the 12-month period
ending February 29, 2000, bond
yields across most sectors were close
to their 30-year lows, a reaction to
the long-running financial crises in
Asia and three earlier interest-rate
cuts by the Federal Reserve Board.
In the second quarter of 2000, however,
it quickly became apparent that the
U.S. economy was surging to the
point where the Fed needed to step
back in, this time to slow growth.
Beginning in June, the Fed began to
take back all three of the earlier cuts,
and gave every indication that it
would continue its hikes. Those
expectations caused bond yields
across the board to rise. Municipal
bonds - generally longer in duration
and, therefore, more interest-rate
sensitive than other fixed-income
sectors, particularly struggled. As
interest rates continued to climb, many
muni bonds fell to deeply discounted
levels, which can create unfavorable
tax consequences for their buyers. In
return, investors demanded greater
yield as compensation, causing the
prices of these issues to drop even
further. For the 12-month period,
the Lehman Brothers Municipal Bond
Index - an index of over 35,000
investment-grade, tax-exempt bonds
- - fell 2.08%. Comparatively, less
interest-rate sensitive sectors such as
corporate and mortgage bonds
fared somewhat better. The Lehman
Brothers Corporate Bond Index
returned 0.01%, while the Lehman
Brothers Mortgage-Backed Securities
Index was up 1.82%.
(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. During the past year, rising interest rates and continued worries
about potential inflation caused the fund to post a negative return,
although it significantly outpaced its peers and did better than its
benchmark. For the 12-month period that ended February 29, 2000, the
fund had a total return of -2.28%. To get a sense of how the fund did
relative to its competitors, the California municipal debt funds
average returned -4.88% for the same 12-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 -2.44%.
Q. WHAT HELPED THE FUND BEAT ITS PEERS?
A. The fund's focus on intermediate-maturity bonds was one of the main
factors behind its outperformance. Throughout the past 12 months, I
emphasized intermediate-maturity bonds - those set to mature within
five to 15 years - because, based on Fidelity's quantitative research
models, I felt that they offered some of the best values for their
given interest-rate sensitivity and their total return potential. That
strategy proved to be beneficial and the fund's larger-than-average
stake in intermediate bonds worked in its favor when demand from
individual investors rose, reflecting the state's very strong income
growth. Toward the end of the period, demand and prices were
comparatively strong for some of the shorter-term,
intermediate-maturity bonds so I sold many to lock in their relatively
strong performance and bought more attractively priced longer-term,
intermediate-maturity bonds.
Q. WHAT OTHER FACTORS AIDED PERFORMANCE?
A. The fund was helped by its focus on premium coupon bonds, which pay
interest rates above face - or par - value. One appealing aspect of
premiums was that they were somewhat insulated from unfavorable tax
treatment that negatively affected the prices of lower coupon bonds,
or "discounts," as rates rose.
Q. WERE THERE ANY DISAPPOINTMENTS?
A. Yes, there were. Health care bonds continued their disappointing
run throughout the past 12 months, coming under pressure from a
variety of challenges including cutbacks in Medicare payments and
ensuing questions about many hospitals' future profitability. With the
help of Fidelity's research staff, I continue to carefully monitor the
impact these developments will have on hospitals over the long term.
My approach is to be very selective, emphasizing high-quality
institutions - such as Cedars Sinai - with a proven track record that
I believe can do well in today's evolving, more competitive operating
environment.
Q. WHICH SECTORS WERE ATTRACTIVE DURING THE PERIOD?
A. The fund had an overweighted position - relative to its benchmark
and the California market as a whole - in education bonds, including
those backed by California's colleges and universities. They allowed
me to diversify the fund away from economically sensitive issues such
as general obligation bonds, which depend on sales, property, income
and other tax revenue collections. Furthermore, projections call for
an increasing number of students to seek advanced degrees over the
next several years. Some of the fund's larger holdings in the
education sector at the end of the period were bonds issued by
Stanford University, Pepperdine University and the University of
Southern California. The fund also had a relatively large weighting in
electric utility bonds to take advantage of potential debt
restructuring activity that I expect to follow California's moves to
deregulate the industry. To make the rate structures more competitive,
large electric issuers are retiring outstanding debt.
Q. WHAT'S YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
A. At the end of the period, municipals were fairly cheap compared to
their Treasury counterparts. To the extent that investors realize and
act on that relative cheapness, municipals could gain ground on
Treasuries. Of course, the major determinant of the bond market's
performance will, as always, be the direction of interest rates. But
instead of spending time trying to forecast interest-rate movements,
I'll look for attractively priced bonds that I believe will
outperform, no matter where interest rates end up.
CHRISTINE THOMPSON ON THE
CALIFORNIA ECONOMY:
"California's economy continued
to expand at a steady and healthy
pace during the past 12 months.
Its per capita income growth
outpaced the national average,
helping to boost the state's retail
and housing industries. Home
sales also continued to rise at a
steady pace. While slowing
somewhat, job growth
continued to be strong.
Above-average income growth and
strong job growth helped push the
state's unemployment rate to a
record low 4.8% in late 1999. One
small exception to all these
favorable trends was that state
exporters did not see much
benefit from rebounding global
economies, although shipments
out of California ports did.
"California bonds have performed
well recently because of strong
demand and moderate supply.
Down the road, however, we
expect supply will pick up as the
need for infrastructure
improvements expands in
response to the state's
expanding population base. As the
state's population grows, so does
the need for additional and
improved transportation, schools,
roads and utilities. To fund these
projects, municipalities and other
issuers will likely increase their
bond market borrowing."
FUND FACTS
GOAL: seeks a high level of
current income, exempt from
federal and California
personal income tax
FUND NUMBER: 091
TRADING SYMBOL: FCTFX
START DATE: July 7, 1984
SIZE: as of February 29,
2000, more than $1.2
billion
MANAGER: Christine Thompson,
since 1998; manager,
various Fidelity and Spartan
municipal income funds;
joined Fidelity in 1985
(checkmark)
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.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE SECTORS AS OF
FEBRUARY 29, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
General Obligations 19.8 24.9
Transportation 13.7 11.7
Electric Utilities 12.3 11.9
Special Tax 11.6 8.5
Escrowed/Pre-Refunded 10.1 10.1
AVERAGE YEARS TO MATURITY AS
OF FEBRUARY 29, 2000
6 MONTHS AGO
Years 14.6 13.6
</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 FEBRUARY 29,
2000
6 MONTHS AGO
Years 7.3 7.3
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 FEBRUARY 29, 2000
Aaa 56.0%
Aa, A 32.6%
Baa 10.3%
Not Rated 0.6%
Short-term
Investments 0.5%
Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 32.6
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 10.3
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.6000000000000001
Row: 1, Col: 8, Value: 0.5
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: 0.0
Row: 1, Col: 3, Value: 34.7
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 10.6
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 2.2
Row: 1, Col: 8, Value: 1.7
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.
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENTS FEBRUARY 29, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS - 98.2%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 95.9%
Alameda Corridor Trans. Auth.
Rev. Sr. Lien Series A:
4.75% 10/1/25 (MBIA Insured) Aaa $ 5,000 $ 4,109
5% 10/1/29 (MBIA Insured) Aaa 1,000 852
5.25% 10/1/21 (MBIA Insured) Aaa 7,475 6,793
Alameda County Ctfs. of Prtn. Aaa 2,000 2,021
Rfdg. (Santa Rita Jail
Proj.) 5.7% 12/1/14 (MBIA
Insured)
Brea Olinda Unified School Aaa 1,095 1,138
District Series A, 6% 8/1/15
(FGIC Insured)
Buena Park Cmnty. Redev. BBB+ 3,500 3,667
Agcy. Tax Allocation Rfdg.
(Central Bus. District
Proj.) Series A, 7.1% 9/1/14
Burbank Redev. Agy. Rfdg.:
(City Ctr. Redev. Proj.) Aaa 4,000 3,758
Series A, 5% 12/1/15 (FSA
Insured)
(Golden State Redev. Proj.) Baa1 4,655 4,724
Series A, 5.75% 12/1/08
Cabrillo Unified School Aaa 2,150 1,243
District (Cap.
Appreciation) Series A, 0%
8/1/10 (AMBAC Insured)
California Dept. of Wtr.
Resources Central Valley
Proj. Rev. (Wtr. Sys. Proj.):
Series J1, 7% 12/1/12 Aa2 1,000 1,160
Series J2, 5.9% 12/1/05 Aa2 6,400 6,801
Series S, 5% 12/1/19 Aa2 3,160 2,807
California Ed. Facilities
Auth. Rev.:
(California Student Ln. Aaa 4,900 4,889
Prog.) Series A, 6% 3/1/16
(MBIA Insured) (d)
(Cap. Appreciation) (Loyola Aaa 3,545 2,428
Marymount Proj.) 0% 10/1/07
(MBIA Insured)
(Pepperdine Univ. Proj.)
Series A:
5% 11/1/18 A1 1,770 1,555
5% 11/1/29 A1 2,500 2,092
(Scripps College Proj.) A1 6,000 5,146
5.125% 2/1/30
(Stanford Univ. Proj.) Series Aaa 32,475 28,941
N, 5.2% 12/1/27
(Univ. of San Diego Proj.) 5% Aaa 5,000 4,265
10/1/28 (AMBAC Insured)
(Univ. of Southern California Aa2 5,000 4,665
Proj.) 5.5% 10/1/27
Rfdg.:
(Chapman Univ. Proj.) 5.375% AAA 2,000 1,908
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
Proj.):
5% 11/1/29 Aa1 $ 5,000 $ 4,257
5.1% 11/1/17 Aa1 1,000 915
(Santa Clara Univ. Proj.):
5.25% 9/1/16 (AMBAC Insured) Aaa 1,650 1,586
5.25% 9/1/17 (AMBAC Insured) Aaa 1,000 941
5.25% 9/1/19 (AMBAC Insured) Aaa 3,930 3,638
5.25% 9/1/26 A1 7,910 7,121
(Stanford Univ. Proj.) Series Aaa 11,000 9,620
O, 5.125% 1/1/31
(Univ. of Southern California
Proj.):
Series A, 5.7% 10/1/15 Aa2 5,675 5,722
Series C, 5.125% 10/1/28 Aa2 7,725 6,764
California Franchise Tax A1 1,825 1,890
Board Ctfs. of Prtn. Rfdg.
5.5% 10/1/06
California Gen. Oblig.:
Bonds 3.6%, tender 6/1/01 (d) Aa3 25,000 24,715
Rfdg.:
4.75% 2/1/19 (FGIC Insured) Aaa 2,000 1,709
5.75% 2/1/11 (FGIC Insured) Aaa 6,500 6,808
4.5% 12/1/24 (FGIC Insured) Aaa 5,000 3,954
5% 10/1/18 Aa3 5,000 4,482
5% 10/1/23 Aa3 8,000 6,952
5.25% 10/1/14 Aa3 3,000 2,933
5.25% 10/1/17 Aa3 1,500 1,416
6.4% 2/1/05 Aa3 3,375 3,617
6.6% 2/1/09 Aa3 3,000 3,315
6.6% 2/1/10 Aa3 4,000 4,447
6.75% 3/1/07 Aa3 2,300 2,547
6.75% 8/1/10 Aa3 5,675 6,402
7% 10/1/10 Aa3 6,695 7,699
California Health Facilities
Fing. Auth. Rev.:
(Cedars-Sinai Med. Ctr.
Proj.) Series A:
6.125% 12/1/30 A2 6,700 6,375
6.25% 12/1/34 A2 15,000 14,505
(Gould Med. Foundation Proj.) AA- 4,500 4,600
Series A, 7.3% 4/1/20
(Escrowed to Maturity) (e)
(Kaiser Permante Proj.) Aaa 4,720 4,462
Series A, 5.55% 8/15/25
(MBIA Insured)
(Summit Med. Ctr. Proj.) Aaa 2,400 2,484
Series A, 5.5% 5/1/05 (FSA
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Health Facilities
Fing. Auth. Rev.: - continued
Rfdg.:
(Catholic Health Care West
Proj.) Series A:
4.5% 7/1/00 Baa1 $ 3,000 $ 3,002
4.5% 7/1/02 Baa1 7,065 6,827
4.5% 7/1/03 Baa1 1,210 1,150
4.5% 7/1/04 Baa1 1,500 1,401
5% 7/1/01 Baa1 3,615 3,573
(Children's Hosp. Proj.):
6% 7/1/03 (MBIA Insured) Aaa 1,200 1,252
6% 7/1/06 (MBIA Insured) Aaa 1,500 1,591
California Hsg. Fin. Agcy. Aaa 1,135 1,117
Home Mtg. Rev. Series L,
5.7% 8/1/25 (MBIA Insured)
(d)
California Hsg. Fin. Agcy.
Rev.:
(Cap. Appreciation) (Home
Mtg. Prog.):
Series 1983 A, 0% 2/1/15 Aa2 8,187 2,031
Series 1983 B, 0% 8/1/15 Aa2 170 36
Series C, 0% 8/1/21 (d) Aa2 995 194
(Home Mtg. Prog.):
Series C, 7.6% 8/1/30 (d) Aa2 2,580 2,622
Series I, 4.95% 8/1/28 (MBIA Aaa 2,880 2,853
Insured) (d)
Series J, 4.85% 8/1/27 (MBIA Aaa 3,465 3,365
Insured) (d)
California Poll. Cont. Fing.
Auth. Rev.:
(Gen. Motors Corp. Proj.) A3 1,500 1,503
5.5% 4/1/08
Rfdg. (San Diego Gas & Elec. A2 4,000 4,099
Co. Proj.) Series A, 5.9%
6/1/14
California Pub. Cap. Impt. Aaa 8,775 8,862
Fin. Auth. Rev. (A Joint
Powers Agcy. Proj.) Series
B, 8.1% 3/1/18 (MBIA Insured)
California Pub. Works Board
Lease Rev.:
(California Cmnty. College A1 2,000 2,090
Projs.) Series A, 5.875%
10/1/08
(Dept. of Corrections, Madera
State Prison Proj.) Series E:
5.5% 6/1/15 A1 8,250 8,180
5.5% 6/1/19 A1 3,000 2,842
6% 6/1/07 A1 2,090 2,217
(Dept. of Corrections, Aaa 4,000 3,908
Susanville State Prison
Proj.) Series D, 5.25%
6/1/15 (FSA Insured)
(Substance Abuse Treatment Aaa 3,000 3,004
Facilities Corcoran II
Proj.) Series A, 5.5% 1/1/14
(AMBAC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Pub. Works Board
Lease Rev.: - continued
(Various California State
Univ. Projs.):
Series A:
6.1% 10/1/06 A1 $ 1,210 $ 1,290
6.5% 9/1/04 A 1,090 1,164
Series B:
5.5% 6/1/14 Aa3 2,750 2,751
5.5% 6/1/19 Aa3 2,000 1,922
5.55% 6/1/10 Aa3 2,195 2,274
6.4% 12/1/09 Aa3 3,700 4,076
Series C, 5.125% 9/1/22 Aaa 10,000 8,911
(AMBAC Insured)
Rfdg.:
(California Cmnty. Colleges A1 4,450 4,133
Proj.) Series A, 5.25%
12/1/16
(Dept. of Corrections,
Monterey County State Prison
Proj.) Series D:
5.375% 11/1/11 A1 2,500 2,506
5.375% 11/1/12 A1 1,250 1,247
5.375% 11/1/13 A1 5,055 4,993
5.375% 11/1/14 A1 5,000 4,892
(Library & Courts Annex A1 1,290 1,324
Proj.) Series A, 5.5% 5/1/09
California Statewide Cmntys.
Dev. Auth. Rev. Ctfs. of
Prtn.:
(Sisters Charity Leavenworth Aa3 1,315 1,176
Proj.) 5% 12/1/14
Rfdg.:
(Children's Hosp. Proj.) 6% Aaa 2,470 2,603
6/1/13 (MBIA Insured)
(Saint Joseph Health Sys.
Proj.):
5.25% 7/1/08 Aa3 2,710 2,669
5.5% 7/1/07 Aa3 1,425 1,435
5.5% 7/1/14 Aa3 4,500 4,247
5.5% 7/1/23 Aa3 3,000 2,671
(Triad Health Care Hosp. AA- 5,000 5,226
Proj.) 6.25% 8/1/06
(Escrowed to Maturity) (e)
5.616% 7/1/13 (MBIA Insured) Aaa 10,000 10,026
California Univ. Rev. Series Aaa 3,000 2,960
1999 A, 5.875% 11/1/30 (FGIC
Insured)
Campbell Gen. Oblig. Ctfs. of A2 4,965 4,958
Prtn. Rfdg. (Civic Ctr.
Proj.) 6% 10/1/18
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Carson Redev. Agcy. Rfdg.:
(Area #1 Redev. Proj.):
6.375% 10/1/12 Baa1 $ 3,965 $ 4,068
6.375% 10/1/16 Baa1 2,000 2,020
(Area #2 Redev. Proj.) 5.5% Baa2 100 102
10/1/02
Castaic Lake Wtr. Agcy. Ctfs.
of Prtn. Rfdg. (Wtr. Sys.
Impt. Proj.) Series A:
7% 8/1/11 (MBIA Insured) Aaa 1,500 1,723
7% 8/1/12 (MBIA Insured) Aaa 1,000 1,157
7% 8/1/13 (MBIA Insured) Aaa 4,740 5,495
7.25% 8/1/07 (MBIA Insured) Aaa 1,755 2,006
Central Coast Wtr. Auth. Rev. Aaa 1,420 1,239
Rfdg. (State Wtr. Reg'l.
Facilities Proj.) Series A,
5% 10/1/22 (AMBAC Insured)
Central Valley Fing. Auth.
Cogeneration Proj. Rev.
(Carson Ice Gen. Proj.):
5.5% 7/1/01 BBB- 1,400 1,412
6% 7/1/09 BBB- 4,800 4,811
Coalinga Gen. Oblig. Ctfs. of A- 3,505 3,579
Prtn. 7% 4/1/10
Contra Costa County Ctfs. of
Prtn. (Cap. Appreciation)
(Merrithew Mem. Hosp. Proj.):
0% 11/1/13 (Escrowed to Aaa 6,805 3,137
Maturity) (e)
0% 11/1/14 (Escrowed to Aaa 3,000 1,286
Maturity) (e)
Contra Costa Wtr. District Aaa 2,000 2,029
Wtr. Rev. Series G, 5.75%
10/1/14 (MBIA Insured)
Desert Hosp. District Hosp. Aaa 13,000 13,762
Rev. Ctfs. of Prtn. 6.392%
7/28/20 (FSA Insured)
(Pre-Refunded to 7/23/02 @
102) (e)
Duarte Ctfs. of Prtn. Rfdg.
Series A:
4.625% 4/1/07 Baa2 890 810
5% 4/1/11 Baa2 2,000 1,756
5% 4/1/12 Baa2 4,210 3,650
5% 4/1/13 Baa2 1,830 1,531
5.25% 4/1/08 Baa2 2,650 2,482
5.25% 4/1/09 Baa2 1,600 1,479
Eastern Muni. Wtr. District Aaa 3,600 4,081
Wtr.&Swr. Rev. Ctfs. of
Prtn. 6.75% 7/1/12 (FGIC
Insured)
Elk Grove Unified School Aaa 4,000 4,349
District Spl. Tax Rfdg.
(Cmnty. Facilities District
#1 Proj.) 6.5% 12/1/24
(AMBAC Insured)
Encinitas Union School
District (Cap. Appreciation):
0% 8/1/03 (MBIA Insured) Aaa 1,750 1,498
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Encinitas Union School
District (Cap.
Appreciation): - continued
0% 8/1/04 (MBIA Insured) Aaa $ 1,750 $ 1,420
0% 8/1/10 (MBIA Insured) Aaa 1,000 578
Eureka Unified School Aaa 660 687
District Ctfs. of Prtn.
(Cap. Appreciation) Series
A, 6.9% 9/1/27 (FSA Insured)
Fairfield-Suisun Swr.
District Swr. Rev. Rfdg.
(Cap. Appreciation) Series A:
0% 5/1/07 (MBIA Insured) Aaa 1,635 1,144
0% 5/1/08 (MBIA Insured) Aaa 2,085 1,374
0% 5/1/09 (MBIA Insured) Aaa 2,080 1,294
Foothill/Eastern Trans.
Corridor Agcy. Toll Road
Rev. (Cap. Appreciation) Sr.
Lien Series A:
0% 1/1/04 (Escrowed to Aaa 1,600 1,321
Maturity) (e)
0% 1/1/05 (Escrowed to Aaa 1,000 781
Maturity) (e)
0% 1/1/08 (Escrowed to Aaa 2,000 1,627
Maturity) (b)(e)
Foster City Pub. Fing. Auth.
Rev. (Foster City Cmnty.
Dev. Ln. Prog.) Series A:
5.5% 9/1/09 A- 370 370
5.8% 9/1/16 A- 1,000 962
6% 9/1/06 A- 1,355 1,396
6% 9/1/07 A- 1,440 1,475
6% 9/1/13 A- 1,925 1,935
Fremont Unifed School Aaa 1,000 614
District Alameda County
(Cap. Appreciation) Series
F, 0% 8/1/09 (MBIA Insured)
Glendale Elec. Rev. 6% 2/1/30 AAA 12,245 12,297
(MBIA Insured)
La Quinta Redev. Agcy. Tax.
Allocation Rfdg. (Area #1
Redev. Proj.):
7.3% 9/1/06 (MBIA Insured) Aaa 620 704
7.3% 9/1/11 (MBIA Insured) Aaa 555 652
Local Govt. Fin. Auth. Rev.
(Cap. Appreciation) (Oakland
Central District Proj.):
0% 9/1/08 (MBIA Insured) Aaa 3,710 2,404
0% 9/1/09 (MBIA Insured) Aaa 3,565 2,179
Long Beach Hbr. Rev.:
Rfdg. Series A:
5% 5/15/03 (FGIC Insured) (d) Aaa 1,900 1,924
5.5% 5/15/08 (FGIC Insured) Aaa 8,780 9,037
(d)
6% 5/15/09 (FGIC Insured) (d) Aaa 3,000 3,183
6% 5/15/10 (FGIC Insured) (d) Aaa 1,000 1,060
5.125% 5/15/13 (d) Aa3 12,450 12,011
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Long Beach Hbr. Rev.: -
continued
5.5% 5/15/11 (MBIA Insured) Aaa $ 700 $ 707
(d)
5.5% 5/15/15 (MBIA Insured) Aaa 3,710 3,634
(d)
5.75% 5/15/07 (MBIA Insured) Aaa 3,845 4,031
(d)
6% 5/15/06 (MBIA Insured) (d) Aaa 3,525 3,737
Los Angeles County Ctfs. of
Prtn. (Cap. Appreciation):
(Correctional Facilities
Proj.):
0% 9/1/10 (MBIA Insured) Aaa 3,770 2,113
(Escrowed to Maturity) (e)
0% 9/1/11 (MBIA Insured) Aaa 6,400 3,384
(Escrowed to Maturity) (e)
(Disney Parking Proj.):
0% 3/1/10 A3 2,000 1,126
0% 3/1/11 A3 1,950 1,023
0% 3/1/12 A3 2,180 1,068
0% 3/1/13 A3 6,490 2,957
0% 3/1/18 A3 3,000 940
0% 3/1/19 A3 3,175 924
0% 3/1/20 A3 1,000 271
Los Angeles County Metro.
Trans. Auth. Sales Tax Rev.:
(Proposition A Proj.) First Aaa 1,585 1,684
Tier Sr. Series A, 5.9%
7/1/14 (MBIA Insured)
(Pre-Refunded to 7/1/06 @
101) (e)
Rfdg. (Proposition A Proj.) Aaa 3,310 2,884
First Tier Sr. Series C,
4.75% 7/1/17 (AMBAC Insured)
Los Angeles County Pub. Works Aa3 6,000 5,343
Fing. Auth. Rev. (Reg'l.
Park & Open Space District
Proj.)) Series A, 5% 10/1/19
Los Angeles Dept. Arpts. Rev. Aaa 1,000 1,013
(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 3,471
5.25% 11/15/26 (MBIA Insured) Aaa 17,760 16,040
5.4% 11/15/31 (MBIA Insured) Aaa 4,000 3,625
4.75% 8/15/12 (FGIC Insured) Aaa 6,035 5,743
4.75% 8/15/16 (FGIC Insured) Aaa 2,700 2,396
6.375% 2/1/20 Aa3 1,000 1,027
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles Dept. Wtr. & Pwr.
Elec. Plant Rev.: - continued
Second Issue:
4.75% 10/15/20 Aa3 $ 1,800 $ 1,520
6.75% 10/15/04 (AMBAC Insured) Aaa 2,400 2,613
9% 10/15/01 Aa3 110 118
Los Angeles Dept. Wtr. & Pwr.
Wtrwks. Rev.:
Rfdg.:
5.5% 10/15/10 Aa3 2,630 2,710
5.5% 10/15/11 (MBIA Insured) Aaa 3,670 3,748
6.1% 10/15/39 (FGIC Insured) Aaa 6,000 6,042
Los Angeles Gen. Oblig. Ctfs.
of Prtn.:
(Dept. Pub. Social Svcs. Aaa 3,700 3,478
Proj.) Series A, 5.5% 8/1/24
(AMBAC Insured)
7.3% 4/1/20 - 3,000 3,068
Los Angeles Hbr. Dept. Rev.:
Series B:
5% 8/1/03 (d) Aa3 2,500 2,534
5.25% 11/1/06 (d) Aa3 7,380 7,541
5.25% 11/1/07 (d) Aa3 4,290 4,374
5.25% 11/1/10 (d) Aa3 9,105 9,124
5.25% 11/1/11 (d) Aa3 7,095 7,043
5.3% 8/1/06 (d) Aa3 2,000 2,048
5.5% 8/1/08 (d) Aa3 1,505 1,550
7.6% 10/1/18 (Escrowed to AAA 14,810 18,085
Maturity) (e)
Los Angeles Unified School Aaa 1,200 1,270
District Series A, 6% 7/1/14
(FGIC Insured)
Los Angeles Wastewtr. Sys. Aaa 3,000 2,566
Rev. 5% 6/1/28 (FGIC Insured)
M-S-R Pub. Pwr. Agcy. San Aaa 2,500 2,746
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 1,576
(Valley Children's Hosp.
Proj.) 6.25% 3/15/05 (MBIA
Insured)
Manhattan Beach Unified Aaa 975 596
School District (Cap.
Appreciation) Series A, 0%
9/1/09 (FGIC Insured)
Metro. Wtr. District Southern
California Wtrwks. Rev.:
Rfdg. Series A, 4.75% 7/1/22 Aa2 10,000 8,323
Series A:
5% 7/1/26 Aa2 5,050 4,345
5% 7/1/30 (MBIA Insured) Aaa 7,500 6,399
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Metro. Wtr. District Southern
California Wtrwks. Rev.: -
continued
5.95% 8/5/22 (Pre-Refunded to Aa2 $ 2,600 $ 2,731
2/7/03 @ 102) (e)
Modesto Pub. Fing. Auth. Aaa 4,000 3,452
Lease Rev. Rfdg. (Cap.
Impts. & Refing. 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 2,215
5.6% 11/1/14 (AMBAC Insured) Aaa 1,370 1,396
(Golf Course Refing. Proj.) Aaa 1,585 1,404
Series B, 5% 11/1/23 (FGIC
Insured)
Modesto Irrigation District
Ctfs. of Prtn.:
(Geysers Geothermal Pwr. A1 5,000 4,510
Proj.) Series 1986 A, 5%
10/1/17
Rfdg. & Cap. Impts. (Cap.
Appreciation) Series A:
0% 10/1/08 (MBIA Insured) Aaa 2,270 1,458
(Escrowed to Maturity) (e)
0% 10/1/09 (MBIA Insured) Aaa 2,270 1,377
(Escrowed to Maturity) (e)
0% 10/1/10 (MBIA Insured) Aaa 2,270 1,300
(Escrowed to Maturity) (e)
Moreno Valley Unified School Aaa 2,230 2,332
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 4,604
Agcy. Rfdg. (Hydro Elec. #1
Proj.) Series A, 7.5% 7/1/23
(AMBAC Insured)
(Pre-Refunded to 7/1/21 @
100) (e)
Northern California Pwr. Aaa 7,600 8,014
Agcy. Multiple Cap.
Facilities Rev. 6.538%
8/1/25 (MBIA Insured)
(Pre-Refunded to 9/3/02 @
102) (e)
Northern California Pwr. Aaa 7,100 8,209
Transmission Rev. (Ore
Trans. Proj.) Series A, 7%
5/1/13 (MBIA Insured)
Oakland Gen. Oblig. Ctfs. of Aaa 2,750 1,931
Prtn. Rfdg. (Cap.
Appreciation) (Oakland
Museum Proj.) Series A, 0%
4/1/07 (AMBAC Insured)
Oakland Redev. Agcy. Sub Tax Aaa 1,000 882
Allocation (Central District
Redev. Proj.) 5% 9/1/21
(MBIA Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Ontario Redev. Fing. Auth.
Rev. (Cap. Appreciation)
(Ctr. City Cimarron #1 Proj.):
0% 8/1/08 (MBIA Insured) Aaa $ 3,255 $ 2,118
0% 8/1/09 (MBIA Insured) Aaa 3,260 2,001
0% 8/1/10 (MBIA Insured) Aaa 3,255 1,882
Orange County Pub. Fin. Auth.
Waste Mgt. Sys. Rev. Rfdg.:
5.25% 12/1/13 (AMBAC Insured) Aaa 4,000 3,907
(d)
5.75% 12/1/09 (AMBAC Insured) Aaa 3,620 3,788
(d)
5.75% 12/1/11 (AMBAC Insured) Aaa 4,000 4,147
(d)
Orange County Arpt. Rev. Rfdg.:
5.5% 7/1/04 (MBIA Insured) (d) Aaa 2,000 2,064
5.5% 7/1/11 (MBIA Insured) (d) Aaa 4,000 4,047
6% 7/1/05 (MBIA Insured) (d) Aaa 3,000 3,165
6% 7/1/07 (MBIA Insured) (d) Aaa 9,135 9,695
Orange County Wtr. District Aaa 1,000 1,022
Ctfs. of Prtn. Rfdg. Series
A, 5.5% 8/15/09 (AMBAC
Insured)
Placer County Wtr. Agcy. Rev. A+ 8,830 7,764
(Middle Fork Proj.) Series
A, 3.75% 7/1/12
Placer County Wtr. Agcy. Wtr. Aaa 3,000 2,794
Rev. Ctfs. of Prtn. (Cap.
Impt. Projs.) 5.5% 7/1/29
(AMBAC Insured)
Pleasanton Joint Powers Fing.
Auth. Rev. (Reassessment
Proj.) Series A:
5.7% 9/2/01 Baa1 1,145 1,162
5.8% 9/2/02 Baa1 4,975 5,087
6% 9/2/05 Baa1 2,135 2,227
6.15% 9/2/12 Baa1 12,205 12,394
Pomona Unified School AAA 4,535 4,553
District Series C, 6% 8/1/30
(FGIC Insured)
Port of Oakland Port Rev.:
Rfdg. (Cap. Appreciation)
Series F:
0% 11/1/05 (MBIA Insured) Aaa 300 228
0% 11/1/06 (MBIA Insured) Aaa 2,890 2,083
0% 11/1/07 (MBIA Insured) Aaa 4,250 2,899
Series G:
5.375% 11/1/08 (MBIA Insured) Aaa 1,805 1,845
(d)
6% 11/1/07 (MBIA Insured) (d) Aaa 1,650 1,755
Rancho Wtr. District Fing. Aaa 6,900 7,191
Auth. Rev. 6.427% 8/17/21
(AMBAC Insured)
(Pre-Refunded to 9/11/01 @
102) (e)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Redding Elec. Sys. Rev. Ctfs.
of Prtn. Rfdg. (Cap.
Appreciation) Series A:
0% 6/1/06 (FGIC Insured) Aaa $ 1,730 $ 1,273
0% 6/1/07 (FGIC Insured) Aaa 1,890 1,316
0% 6/1/08 (FGIC Insured) Aaa 1,300 853
Richmond Redev. Agcy. Tax Aaa 105 112
Allocation Harbour Redev. 7%
7/1/09 (FSA Insured)
Riverside County Asset
Leasing Corp. Leasehold Rev.
(Riverside County Hosp.
Proj.):
Series A:
5.75% 6/1/01 (MBIA Insured) Aaa 1,250 1,272
6.375% 6/1/09 (MBIA Insured) Aaa 5,000 5,307
6.5% 6/1/12 (MBIA Insured) Aaa 18,000 19,767
Series B, 5.7% 6/1/16 (MBIA Aaa 1,950 1,959
Insured)
Riverside County Pub.Fing.
Auth. Tax Allocation Rev.
(Redev. Projs.) Series A:
4.8% 10/1/07 Baa2 1,080 1,032
5% 10/1/08 Baa2 1,135 1,091
5% 10/1/09 Baa2 1,140 1,087
5.1% 10/1/10 Baa2 1,245 1,186
5.25% 10/1/12 Baa2 1,375 1,291
5.5% 10/1/22 Baa2 4,500 3,880
Riverside County Redev. Agcy.
Tax Allocation (#4 Redev.
Proj.) Series A:
7.5% 10/1/10 (Pre-Refunded to - 1,000 1,064
10/1/01 @ 102) (e)
7.5% 10/1/26 (Pre-Refunded to - 2,500 2,659
10/1/01 @ 102) (e)
Riverside Unified School Aaa 5,420 5,752
District Ctfs. of Prtn.
(Land Acquisition Proj.)
Series B, 7.375% 9/1/26 (FSA
Insured) (Pre-Refunded to
9/1/01 @ 102) (e)
Sacramento City Fing. Auth. Aaa 2,000 1,893
Lease Rev. Rfdg. Series A,
5.4% 11/1/20 (AMBAC Insured)
Sacramento City Unified Aaa 6,800 6,830
School District Series A, 6%
7/1/29 (FGIC Insured)
Sacramento Cogeneration Auth.
Cogeneration Proj. Rev.
(Procter & Gamble Proj.):
5.7% 7/1/00 BBB- 1,200 1,207
5.9% 7/1/02 BBB- 1,000 1,019
6% 7/1/03 BBB- 700 719
6.375% 7/1/10 BBB- 700 714
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Sacramento Cogeneration Auth.
Cogeneration Proj. Rev.
(Procter & Gamble Proj.): -
continued
6.5% 7/1/21 (Pre-Refunded to BBB- $ 3,200 $ 3,488
7/1/05 @ 102) (e)
Sacramento Muni. Util.
District Elec. Rev.:
Rfdg.:
Series L, 5.125% 7/1/22 (MBIA Aaa 4,000 3,570
Insured)
Series M, 5.25% 7/1/28 A2 6,500 5,573
5.45% 11/15/08 (FGIC Insured) Aaa 17,700 18,138
Sacramento Pwr. Auth.
Cogeneration Proj. Rev.:
6% 7/1/22 BBB- 2,700 2,473
6.5% 7/1/06 BBB- 4,500 4,751
6.5% 7/1/07 BBB- 2,000 2,117
6.5% 7/1/08 BBB- 1,000 1,060
San Bernardino County:
Ctfs. of Prtn. (Cap. AAA 8,500 9,747
Facilities Proj.) Series B,
6.875% 8/1/24 (Escrowed to
Maturity) (e)
Rfdg. Ctfs. of Prtn. (Med. A3 10,000 8,603
Ctr. Fing. Prog.) 5.5% 8/1/22
San Diego County Ctfs. of
Prtn. (Burnham Institute
Proj.):
5.7% 9/1/11 Baa3 800 796
6.25% 9/1/29 Baa3 6,800 6,417
San Diego County Wtr. Auth. Aaa 5,000 5,097
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
San Diego Wtr. Util. Fund Aaa 10,000 8,145
Ctfs. of Prtn. 4.75% 8/1/28
(FGIC Insured)
San Dieguito Pub. Facilities Aaa 3,000 2,553
Auth. Rev. Series A, 5%
8/1/30 (AMBAC Insured)
San Francisco Bay Area Rapid Aa3 4,500 4,173
Trans. District Sales Tax
Rev. Rfdg. 5.25% 7/1/18
San Francisco Bay Area Tran
Fing. Auth.:
4.75% 8/1/01 (American Cap. A 1,000 1,004
Access Corp. Insured)
5% 8/1/02 (American Cap. A 1,000 1,009
Access Corp. Insured)
5.5% 8/1/05 (American Cap. A 1,000 1,028
Access Corp. Insured)
5.75% 2/1/07 (American Cap. A 1,500 1,559
Access Corp. 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.:
(SFO Fuel Co. Proj.) Series A:
5.125% 1/1/17 (AMBAC Insured) Aaa $ 6,000 $ 5,476
(d)
5.25% 1/1/18 (AMBAC Insured) Aaa 4,515 4,179
(d)
5.25% 1/1/19 (AMBAC Insured) Aaa 4,750 4,328
(d)
Second Series Issue 9A, Aaa 2,000 2,019
5.125% 5/1/07 (FGIC Insured)
(d)
Second Series Issue 10A, 5.3% Aaa 3,680 3,755
5/1/06 (MBIA Insured) (d)
Second Series Issue 12A, Aaa 1,625 1,679
5.625% 5/1/08 (FGIC Insured)
(d)
Second Series Issue 15A:
5.5% 5/1/07 (FSA Insured) (d) Aaa 5,680 5,869
5.5% 5/1/09 (FSA Insured) (d) Aaa 1,355 1,390
5.6% 5/1/02 (FSA Insured) (d) Aaa 4,295 4,393
Second Series Issue 16A:
5.375% 5/1/18 (FSA Insured) Aaa 5,035 4,678
(d)
5.5% 5/1/06 (FSA Insured) (d) Aaa 1,850 1,912
5.5% 5/1/08 (FSA Insured) (d) Aaa 2,945 3,031
Second Series Issue 18A:
5.25% 5/1/11 (MBIA Insured) Aaa 3,280 3,257
(d)
6% 5/1/05 (MBIA Insured) (d) Aaa 2,375 2,502
Second Series Issue 23A:
5.5% 5/1/07 (FGIC Insured) (d) Aaa 1,045 1,080
5.5% 5/1/08 (FGIC Insured) (d) Aaa 2,755 2,835
San Francisco City & County A1 1,000 1,058
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 1,085 706
0% 8/1/09 (FGIC Insured) Aaa 1,085 666
0% 8/1/10 (FGIC Insured) Aaa 1,085 627
Rfdg. (Cap. Appreciation) Aaa 1,475 853
(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 2,670
0% 10/1/07 (FGIC Insured) Aaa 4,770 3,268
0% 10/1/08 (FGIC Insured) Aaa 1,600 1,032
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Joaquin County Ctfs. of A2 $ 2,250 $ 2,290
Prtn. (Gen. Hosp. Proj.)
5.7% 9/1/01 (Escrowed to
Maturity) (e)
San Joaquin Hills Trans.
Corridor Agcy. Toll Road
Rev. (Cap. Appreciation) Jr.
Lien:
0% 1/1/07 (Escrowed to Aaa 3,000 2,116
Maturity) (e)
0% 1/1/08 (Escrowed to Aaa 4,400 2,937
Maturity) (e)
San Jose Arpt. Rev. Rfdg. Aaa 1,905 2,020
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 1,644
4.75% 8/1/29 (AMBAC Insured) Aaa 7,150 5,794
Sanger Unified School Aaa 3,000 2,927
District Rfdg. 5.6% 8/1/23
(MBIA Insured)
Santa Clara County Fing. Aaa 3,725 4,458
Auth. Lease Rev. (VMC
Facilities Replacement
Proj.) Series A, 7.75%
11/15/09 (AMBAC Insured)
Santa Clara County Tran. AA 8,500 7,581
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 Proj.)
Series A:
7.25% 8/1/07 (MBIA Insured) Aaa 2,200 2,515
7.25% 8/1/08 (MBIA Insured) Aaa 1,780 2,047
7.25% 8/1/12 (MBIA Insured) Aaa 1,865 2,200
Santa Monica Redev. Agcy. Tax Aaa 8,395 8,208
Allocation Rev. (Earthquake
Recovery Revdev. Proj.)
Series 1999, 5.75% 7/1/22
(AMBAC Insured)
South Orange County Pub.
Fing. Auth. Spl. Tax Rev.:
(Foothill Area Proj.) Series C:
7.5% 8/15/06 (FGIC Insured) Aaa 2,000 2,292
7.5% 8/15/07 (FGIC Insured) Aaa 2,290 2,655
8% 8/15/09 (FGIC Insured) Aaa 3,650 4,431
Rfdg. Sr. Lien Series A, 7% Aaa 3,300 3,777
9/1/10 (MBIA Insured)
Southern California Pub. Pwr.
Auth. Pwr. Proj. Rev.:
Rfdg.:
(Mead Adelanto Proj.) Series Aaa 2,000 1,776
A, 4.75% 7/1/16 (AMBAC
Insured)
(Palo Verde Proj.) Series A, Aaa 1,000 926
5% 7/1/15 (AMBAC Insured)
(Escrowed to Maturity) (e)
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
6.75% 7/1/01 A $ 2,000 $ 2,054
6.75% 7/1/10 A 1,400 1,549
6.75% 7/1/11 A 6,500 7,193
7% 7/1/05 A 2,300 2,363
Southern California Pub. Pwr. Aa3 1,000 952
Auth. Transmission Proj.
Rev. Rfdg. (Southern
Transmission Proj.) 5.5%
7/1/20
Stanislaus County Rfdg. Ctfs. Aaa 1,500 1,467
of Prtn. 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 3,058
0% 9/1/08 (MBIA Insured) Aaa 4,745 3,075
0% 9/1/09 (MBIA Insured) Aaa 2,485 1,519
0% 9/1/12 (MBIA Insured) Aaa 2,750 1,389
Tahoe-Truckee Joint Unified Aaa 6,625 3,814
School District (Cap.
Appreciation) Series A, 0%
9/1/10 (FGIC Insured)
Univ. of California Revs. Aaa 100 111
Rfdg. (Multiple Purp.
Projs.) Series C, 9% 9/1/02
(AMBAC Insured)
Upland Rfdg. Ctfs. of Prtn.
(San Antonio Cmnty. Hosp.
Proj.):
5.25% 1/1/08 A 3,700 3,526
5.25% 1/1/13 A 8,500 7,683
West Covina Ctfs. of Prtn.
(Queen of the Valley Hosp.
Proj.):
6% 8/15/03 (Escrowed to A2 925 965
Maturity) (e)
6.125% 8/15/04 (Escrowed to A2 980 1,034
Maturity) (e)
1,161,871
GUAM - 0.6%
Guam Pwr. Auth. Rev. Rfdg.
Series A:
4% 10/1/01 Baa3 1,500 1,484
4% 10/1/02 Baa3 2,425 2,376
4% 10/1/03 Baa3 1,795 1,738
4% 10/1/04 Baa3 1,620 1,550
7,148
PUERTO RICO - 1.7%
Puerto Rico Commonwealth Gen.
Oblig.:
(Pub. Impt. Proj.):
5% 7/1/01 Baa1 4,000 4,018
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PUERTO RICO - CONTINUED
Puerto Rico Commonwealth Gen.
Oblig.: - continued
(Pub. Impt. Proj.):
5% 7/1/02 Baa1 $ 3,305 $ 3,318
Rfdg. 5.5% 7/1/11 Baa1 5,675 5,701
Puerto Rico Muni. Fin. Agcy.:
Rfdg. Series B, 5.5% 7/1/02 Aaa 5,105 5,206
(FSA Insured)
Series A, 5.5% 7/1/02 (FSA Aaa 2,845 2,901
Insured)
21,144
TOTAL MUNICIPAL BONDS 1,190,163
(Cost $1,199,962)
</TABLE>
MUNICIPAL NOTES - 0.6%
CALIFORNIA - 0.6%
California Health Facilities 200 200
Fing. Auth. Rev. (Saint
Joseph Health Sys. Proj.)
Series 1991 B, 3.2%, VRDN (c)
California Poll. Cont. Fing.
Auth. Rev.:
(Pacific Gas & Elec. Co. 3,800 3,800
Proj.) Series 1996 C, 3.15%,
LOC Bank of America NA, VRDN
(c)
Rfdg. (Pacific Gas & Elec.Co. 400 400
Proj.) Series 1996 G, 3.2%,
VRDN (c)
Chula Vista Ind. Dev. Rev. 2,600 2,600
Rfdg. (San Diego Gas & Elec.
Co. Proj.) Series 1997 A,
3.3%, VRDN (c)(d)
TOTAL MUNICIPAL NOTES 7,000
(Cost $7,000)
TOTAL INVESTMENT PORTFOLIO - 1,197,163
98.8%
(Cost $1,206,962)
NET OTHER ASSETS - 1.2% 14,771
NET ASSETS - 100% $ 1,211,934
SECURITY TYPE ABBREVIATION
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) S&P 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 (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 80.3% AAA, AA, A 81.4%
Baa 8.1% BBB 7.5%
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 0.6%.
The distribution of municipal securities by revenue source, as a
percentage of net assets, is as follows:
General Obligations 19.8%
Transportation 13.7
Electric Utilities 12.3
Special Tax 11.6
Escrowed/Pre-Refunded 10.1
Education 8.2
Water & Sewer 8.2
Health Care 7.9
Others* (individually less 8.2
than 5%)
100.0%
* Includes short-term investments and net other assets.
INCOME TAX INFORMATION
At February 29, 2000, the aggregate cost of investment securities for
income tax purposes was $1,206,963,000. Net unrealized depreciation
aggregated $9,800,000, of which $29,379,000 related to appreciated
investment securities and $39,179,000 related to depreciated
investment securities.
The fund hereby designates approximately $6,196,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
The fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends (unaudited).
During the fiscal year ended February 29, 2000, 100% of the fund's
income dividends was free from federal income tax, and 12.45% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) FEBRUARY
29, 2000
ASSETS
Investment in securities, at $ 1,197,163
value (cost $1,206,962) -
See accompanying schedule
Cash 2,591
Receivable for investments 6,889
sold
Receivable for fund shares 988
sold
Interest receivable 16,610
Other receivables 41
TOTAL ASSETS 1,224,282
LIABILITIES
Payable for investments $ 9,335
purchased
Payable for fund shares 1,100
redeemed
Distributions payable 1,398
Accrued management fee 378
Other payables and accrued 137
expenses
TOTAL LIABILITIES 12,348
NET ASSETS $ 1,211,934
Net Assets consist of:
Paid in capital $ 1,227,429
Undistributed net interest 115
income
Accumulated undistributed net (5,811)
realized gain (loss) on
investments
Net unrealized appreciation (9,799)
(depreciation) on investments
NET ASSETS, for 105,195 $ 1,211,934
shares outstanding
NET ASSET VALUE, offering $11.52
price and redemption price
per share ($1,211,934
(divided by) 105,195 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED FEBRUARY 29, 2000
INTEREST INCOME $ 66,877
EXPENSES
Management fee $ 4,887
Transfer agent fees 986
Accounting fees and expenses 306
Non-interested trustees' 3
compensation
Custodian fees and expenses 41
Registration fees 24
Audit 31
Legal 10
Reports to shareholders 24
Miscellaneous 3
Total expenses before 6,315
reductions
Expense reductions (26) 6,289
NET INTEREST INCOME 60,588
REALIZED AND UNREALIZED GAIN 1,686
(LOSS)
Net realized gain (loss) on
investment securities
Change in net unrealized (94,164)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (92,478)
NET INCREASE (DECREASE) IN $ (31,890)
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions: Custodian $ 16
credits
Transfer agent credits 10
$ 26
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 29, 2000 YEAR ENDED FEBRUARY 28, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 60,588 $ 58,776
Net realized gain (loss) 1,686 15,153
Change in net unrealized (94,164) 886
appreciation (depreciation)
NET INCREASE (DECREASE) IN (31,890) 74,815
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (60,322) (58,776)
From net interest income
From net realized gain (1,686) (10,872)
In excess of net realized (4,227) -
gain
TOTAL DISTRIBUTIONS (66,235) (69,648)
Share transactions Net 353,712 338,914
proceeds from sales of shares
Reinvestment of distributions 46,838 51,113
Cost of shares redeemed (449,241) (274,845)
NET INCREASE (DECREASE) IN (48,691) 115,182
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) (146,816) 120,349
IN NET ASSETS
NET ASSETS
Beginning of period 1,358,750 1,238,401
End of period (including $ 1,211,934 $ 1,358,750
undistributed net interest
income of $115 and $0,
respectively)
OTHER INFORMATION
Shares
Sold 29,745 27,333
Issued in reinvestment of 3,954 4,128
distributions
Redeemed (38,006) (22,189)
Net increase (decrease) (4,307) 9,272
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning $ 12.410 $ 12.360 $ 11.810 $ 11.720 $ 11.120
of period
Income from Investment .557 D .569 .589 .599 .625
Operations Net interest
income
Net realized and unrealized (.838) .154 .550 .096 .597
gain (loss)
Total from investment (.281) .723 1.139 .695 1.222
operations
Less Distributions
From net interest income (.555) (.569) (.589) (.602) (.622)
From net realized gain (.015) (.104) - (.003) -
In excess of realized gain (.039) - - - -
Total distributions (.609) (.673) (.589) (.605) (.622)
Net asset value, end of period $ 11.520 $ 12.410 $ 12.360 $ 11.810 $ 11.720
TOTAL RETURN A (2.28)% 6.00% 9.89% 6.16% 11.25%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,212 $ 1,359 $ 1,238 $ 486 $ 498
(in millions)
Ratio of expenses to average .49% .52% .54% B .57% .58%
net assets
Ratio of expenses to average .49% .52% .53% C .57% .58%
net assets after expense
reductions
Ratio of net interest income 4.69% 4.59% 4.85% 5.19% 5.44%
to average net assets
Portfolio turnover rate 35% 34% 37% 17% 37%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B 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.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
D NET INTEREST INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E 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 past 10 year total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 29, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN CA MUNICIPAL MONEY 2.79% 16.69% 39.73%
MARKET
California Tax-Free Money 2.51% 15.15% 34.79%
Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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 one year average represents a peer group of 44
money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 29, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
SPARTAN CA MUNICIPAL MONEY 2.79% 3.14% 3.40%
MARKET
California Tax-Free Money 2.51% 2.86% 3.03%
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
2/28/00 11/29/99 8/30/99 5/31/99 3/1/99
Spartan California Municipal 2.65% 3.11% 2.64% 2.65% 2.37%
Money Market
California Tax-Free Money 2.28% 2.91% 2.40% 2.55% 2.17%
Market Funds Average
Spartan California Municipal 4.57% 5.33% 4.54% 4.55% 4.08%
Money Market - Tax-equivalent
Portion of fund's income 24.71% 17.54% 20.94% 17.87% 20.62%
subject to state taxes
Row: 1, Col: 1, Value: 2.65
Row: 1, Col: 2, Value: 2.28
Row: 2, Col: 1, Value: 3.11
Row: 2, Col: 2, Value: 2.91
Row: 3, Col: 1, Value: 2.64
Row: 3, Col: 2, Value: 2.4
Row: 4, Col: 1, Value: 2.65
Row: 4, Col: 2, Value: 2.55
Row: 5, Col: 1, Value: 2.37
Row: 5, Col: 2, Value: 2.17
4% -
3% -
2% -
1% -
0%
Spartan California
Municipal Money
Market
California Tax-Free
Money Market
Funds Average
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 2000 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.
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.
(checkmark)
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 12 MONTHS THAT
ENDED FEBRUARY 29, 2000, DIANE?
A. Economic growth was solid throughout the period. The wealth effect
created by appreciating equity and real estate markets fueled consumer
spending, a significant component of gross domestic product. Growth in
real GDP - gross domestic product adjusted for inflation - was 4.6% in
1999, including a rate of 7.3% in the fourth quarter, its largest gain
in three years. Meanwhile, unemployment hit record lows; it ended 1998
at 4.4% and trended downward throughout 1999, ultimately falling to
4.0% in January 2000, the lowest jobless rate since 1970. With
economic growth this strong and employment this tight, wage pressures
were expected to carry through to the consumer in the form of higher
prices. In large part, though, increased productivity offset
inflationary tendencies. In spite of this relatively tame inflation
backdrop, the Federal Reserve Board felt that action was warranted on
its part. Striking against inflation before it emerged, the Fed raised
the rate banks charge each other for overnight loans - known as the
fed funds target rate - four times, in June, August, and November
1999, and in February 2000. These rate hikes brought the fed funds
target rate up to 5.75% by the end of the period.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. The overriding issue in the California municipal money market was
heavy demand but not enough supply. The combination of these technical
factors caused yields on many California municipal money market
securities to fall to relatively unattractive levels. As a result, I
turned some of my focus - within the limits set by the fund's
prospectus - to out-of-state investment opportunities that offered
more appealing after-tax yields than tax-free alternatives in the
California market. Even though more of shareholders' income will be
taxable at the state level this year because of the out-of-state
investments, I pursued this strategy so the fund could provide higher
yields on a tax-adjusted basis than if I had chosen to invest the same
assets in significantly lower-yielding, tax-exempt California
securities. In addition, for most of the period the fund's average
maturity was longer than its peers, during a time when yields were
expected to move higher. This approach may seem inconsistent with my
fundamental outlook for higher yields in the future. Typically, in a
rising interest-rate environment I would maintain a relatively short
average maturity to enable the fund to re-invest maturing assets at
new, higher rates. However, because of the supply/demand imbalance
within the California market, short-term California money market
securities offered very unattractive yields. As a result, I purchased
longer-term money market securities during periods when they offered
yields that I felt compensated the fund adequately given my outlook
for rising interest rates.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 29, 2000, was 2.65%,
compared to 2.36% 12 months ago. The latest yield was the equivalent
of a 4.59% 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 February 29,
2000, the fund's 12-month total return was 2.79%, compared to 2.51%
for the California tax-free money market funds average, according to
IBC Financial Data, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. Recently, hints of higher prices have emerged, led by increases in
energy prices and higher mortgage rates resulting from rising interest
rates. This change, combined with the continued strength of the U.S.
economy, is likely to prompt the Fed to continue raising short-term
interest rates. The market has priced in at least two more 0.25
percentage point increases in the Fed funds target rate, and the Fed
may be even more aggressive if price increases accelerate. Assets
continue to flow into California municipal money market funds, so I
expect the technical pressures that have characterized the state's
municipal money market to continue. As a result, I anticipate
continuing to look for out-of-state investment opportunities that
offer more attractive yields than those found in California. In
addition, if longer-term securities continue to be relatively
attractive, the fund may have a longer maturity than its peers.
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 February 29, 2000,
more than $1.1 billion
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in 1992
(checkmark)
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.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 2/29/00 % OF FUND'S INVESTMENTS 8/31/99 % OF FUND'S INVESTMENTS 2/28/99
0 - 30 70.7 67.2 73.2
31 - 90 4.5 17.2 3.7
91 - 180 18.8 1.4 15.4
181 - 397 6.0 14.2 7.7
WEIGHTED AVERAGE MATURITY
2/29/00 8/31/99 2/28/99
Spartan California
Municipal 43 DAYS 59 Days 44 Days
Money Market Fund
California Tax Free Money 41 DAYS 58 Days 40 Days
Market Funds Average *
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF FEBRUARY 29, 2000 AS OF AUGUST 31, 1999
Variable Rate Demand Notes Variable Rate Demand Notes
(VRDNs) 38.8% (VRDNs) 35.0%
Commercial Paper (including Commercial Paper (including
CP Mode) 14.4% CP Mode) 17.9%
Tender Bonds 0.1% Tender Bonds 4.1%
Municipal Notes 22.8% Municipal Notes 20.5%
Municipal Money Market Funds Municipal Money Market Funds
19.7% 20.1%
Other Investments and Net Other Investments and Net
Other Assets 4.2% Other Assets 2.4%
</TABLE>
Row: 1, Col: 1, Value: 38.8
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 14.4
Row: 1, Col: 4, Value: 0.1
Row: 1, Col: 5, Value: 22.8
Row: 1, Col: 6, Value: 19.7
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 4.2
Row: 1, Col: 1, Value: 35.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 17.9
Row: 1, Col: 4, Value: 4.1
Row: 1, Col: 5, Value: 20.5
Row: 1, Col: 6, Value: 20.1
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 2.4
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS FEBRUARY 29, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 97.0%
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 76.4%
Berkeley Gen. Oblig. BAN $ 6,200 $ 6,223
Series 1999 2000, 4.25%
12/14/00
California Cmnty. College 8,885 8,892
Fing. Auth. Rev. TRAN Series
1999 B, 4% 7/28/00 (FSA
Insured)
California Econ. Dev. Fing.
Auth. Ind. Dev. Rev.:
(Calco, LLC Proj.) Series 1,100 1,100
1997, 3%, LOC Wells Fargo
Bank NA, San Francisco, VRDN
(a)(d)
(Kuhnash Properties III, 1,500 1,500
LLC/Arkay Plastics, LLC
Proj.) Series 1997, 3.75%,
LOC PNC Bank NA, VRDN (a)(d)
California Ed. Facilities
Auth. Rev. Participating VRDN:
Series FRRI 37, 2.55% 6,885 6,885
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Series PA 542, 3.11% 2,750 2,750
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
California Gen. Oblig.:
Bonds Series BJ, 3.2%, tender 1,590 1,590
6/1/00 (d)
Participating VRDN:
Series A39, 2.45% (Liquidity 31,800 31,800
Facility Bank of New York
NA) (a)(e)
Series Merlots 99 M, 3.75% 12,075 12,075
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Series PA 315, 3.16% 3,270 3,270
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series Putters 132, 3.16% 28,700 28,700
(Liquidity Facility J.P.
Morgan & Co., Inc.) (a)(e)
Series SG 85, 3.11% 5,500 5,500
(Liquidity Facility Societe
Generale) (a)(e)
Series SGB 7, 3.61% 2,100 2,100
(Liquidity Facility Societe
Generale) (a)(e)
RAN Series A, 4% 6/30/00 7,770 7,787
2.55% 3/14/00, CP 3,800 3,800
2.7% 3/9/00, CP 6,900 6,900
2.7% 4/6/00, CP 16,600 16,600
2.8% 3/3/00, CP 2,200 2,200
3.1% 3/13/00, CP 25,000 25,000
3.4% 4/6/00, CP 6,700 6,700
California Health Facilities
Fing. Auth. Rev.:
(Saint Joseph Health Sys. 7,500 7,500
Proj.) Series 1991 B, 3.2%,
VRDN (a)
(Sutter Health Proj.) Series 2,100 2,100
1996 B, 3.2% (AMBAC
Insured), VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy.
Rev.:
Bonds Series D, 3.02% 4/30/00 $ 2,300 $ 2,300
(MBIA Insured) (d)
Participating VRDN:
Series BA 96 C2, 3.46% 4,075 4,075
(Liquidity Facility Bank of
America NA) (a)(d)(e)
Series BA 96 D1, 3.46% 1,925 1,925
(Liquidity Facility Bank of
America NA) (a)(d)(e)
Series PA 112, 3.16% 1,704 1,704
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PA 90, 3.16% 319 319
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PT 14, 3.11% 3,155 3,155
(Liquidity Facility
Commerzbank AG) (a)(e)
Series PT 40A, 3.16% 840 840
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 40B, 3.16% 12,855 12,855
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
Series PT 40D, 3.16% 6,610 6,610
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PT 68, 3.16% 3,000 3,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
California Hsg. Fin. Agcy. 11,110 11,110
Single Family Mtg. Bonds
Series 1999 E, 3.4% 8/1/00
(CDC Fdg. Corp. Guaranteed)
(d)
California Poll. Cont. Fing.
Auth. Rev.:
Bonds (Southern California
Edison Co. Proj.):
Series 1985 C, 3.15% tender 2,800 2,800
4/14/00, CP mode
Series 1985 D, 2.65% tender 6,750 6,750
3/14/00, CP mode
(Pacific Gas & Elec. Co. 8,800 8,800
Proj.) Series 1997 C, 3.25%,
LOC KBC Bank, NV, VRDN
(a)(d)
(Southern California Edison 4,100 4,100
Co. Proj.) Series 1986 A,
3.35%, VRDN (a)
Rfdg. (Pacific Gas & Elec.Co. 9,150 9,150
Proj.) Series 1996 G, 3.2%,
VRDN (a)
California School Cash 48,100 48,207
Reserve Prog. Auth. TRAN
Series 1999 A, 4% 7/3/00
(AMBAC Insured)
California School Fin. Auth. 5,475 5,489
BAN Series A, 4.25% 10/1/00
California Statewide Cmntys. 5,960 5,960
Dev. Auth. Multi-family Rev.
(Oakmont Stokton Proj.)
Series 1997 C, 2.6%, LOC
Commerzbank AG, VRDN (a)(d)
California Statewide Cmntys. 19,325 19,388
Dev. Auth. Rev. TRAN
(Riverside Co. Proj.) Series
C2, 4% 9/29/00
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Statewide Cmntys.
Dev. Auth. Rev. Ctfs. of
Prtn.:
Participating VRDN Series $ 5,000 $ 5,000
1999 E, 3.75% (Liquidity
Facility First Union Nat'l.
Bank, North Carolina) (a)(e)
(Covenant Retirement Commty., 7,400 7,400
Inc. Proj.) Series 1995,
2.75%, LOC LaSalle Nat'l.
Bank, Chicago, VRDN (a)
California Statewide Cmntys.
Dev. Corp. Rev.:
(American River Packaging 1,700 1,700
Proj.) 2.6%, (L&W
Properties) LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Carvin Corp. Proj.) 2.6%, 2,040 2,040
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Northwest Pipe & Casing Co. 2,750 2,750
Proj.) Series 1990, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Pasco Scientific Proj.) 2,105 2,105
2.6%, (S&P Investments) LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Propak-Ca. Corp. Proj.) 1,840 1,840
Series 1994 B, 2.6%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Rapelli of California, Inc. 2,500 2,500
Proj.) Series 1989, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Rix Ind. Proj.) Series 1996 1,760 1,760
I, 2.6%, LOC Wells Fargo
Bank NA, San Francisco, VRDN
(a)(d)
California Veteran Affairs 3,000 3,000
Home Purchase Rev.
Participating VRDN Series A,
3.02% (Liquidity Facility
The Bear Stearns Companies,
Inc.) (a)(d)(e)
Central Valley Schools Fin. 17,000 17,000
Auth. Participating VRDN
Series FRRI 99 A45, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
Chula Vista Ind. Dev. Rev.:
Bonds (San Diego Gas & Elec.
Co. Proj.) Series C:
3.05% tender 3/6/00, CP mode 11,000 11,000
(d)
3.15% tender 4/13/00, CP mode 2,100 2,100
(d)
Rfdg. (San Diego Gas & Elec. 2,200 2,200
Co. Proj.) Series 1997 A,
3.3%, VRDN (a)(d)
Contra Costa County TRAN 3,600 3,612
Series A, 4% 9/29/00
Cucamonga County Wtr. 4,200 4,200
District Participating VRDN
Series FRRI A32, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
Fremont Gen. Oblig. TRAN 3.5% 5,100 5,102
6/30/00
Fresno County Gen. Oblig. 9,000 9,021
TRAN 4% 6/30/00
Kern County Gen. Oblig. TRAN 10,200 10,223
4% 6/30/00
Lassen Muni. Util. District 5,435 5,435
Rev. Rfdg. Series 1996 A,
2.75% (FSA Insured) (BPA Cr.
Local de France), VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Long Beach Hbr. Rev.:
Participating VRDN Series SG $ 5,880 $ 5,880
73, 3.16% (Liquidity
Facility Societe Generale)
(a)(d)(e)
Series A, 2.85% 3/1/00, CP (d) 4,900 4,900
Los Angeles County Gen. 58,800 58,926
Oblig. TRAN Series 1999
2000, 4% 6/30/00
Los Angeles County Metro.
Trans. Auth. Rev.
Participating VRDN:
Series SGB 2, 3.61% 12,700 12,700
(Liquidity Facility Societe
Generale) (a)(e)
Series SGB 3, 3.61% 10,570 10,570
(Liquidity Facility Societe
Generale) (a)(e)
Los Angeles County Metro.
Trans. Auth. Sales Tax Rev.
Participating VRDN:
Series FRRI 30, 2.45% 2,300 2,300
(Liquidity Facility Bank of
New York NA) (a)(e)
Series SG 46, 3.11% 3,600 3,600
(Liquidity Facility Societe
Generale) (a)(e)
Series SG 54, 3.11% 3,000 3,000
(Liquidity Facility Societe
Generale) (a)(e)
Los Angeles County Schools 10,900 10,938
Pooled Fing. Prog. Ctfs. of
Prtn. TRAN (Pooled Trans.
Proj.) Series B, 4% 9/29/00
(FSA Insured)
Los Angeles Dept. Arpts. Rev. 2,600 2,600
Participating VRDN Series SG
61, 3.16% (Liquidity
Facility Societe Generale)
(a)(d)(e)
Los Angeles Dept. Wtr. & Pwr.
Wtrwks. Rev.:
Participating VRDN Series 8,500 8,500
1999 L, 3.75% (Liquidity
Facility First Union Nat'l.
Bank, North Carolina) (a)(e)
2.9% 3/3/00, LOC Bayerische 5,000 5,000
Landesbank Girozentrale, LOC
Bank of America NA, CP
3.15% 4/5/00, LOC Bayerische 6,100 6,100
Landesbank Girozentrale, LOC
Bank of America NA, CP
Los Angeles Gen. Oblig. TRAN 22,800 22,847
Series 1999, 4% 6/30/00
Los Angeles Hbr. Dept. Rev.
Participating VRDN:
Series FRRI 7, 2.55% 15,100 15,100
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Series FRRI A17, 2.6% 2,400 2,400
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series SG 59, 3.16% 8,950 8,950
(Liquidity Facility Societe
Generale) (a)(d)(e)
Los Angeles Wastewtr. Sys. 5,400 5,400
Rev. 3.3% 3/16/00, LOC UBS
AG, LOC Morgan Guaranty
Trust Co., NY, CP
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Rios Cmnty. College $ 2,900 $ 2,900
District Participating VRDN
Series FRRI A42, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
Marin County Gen. Oblig. 16,000 16,000
Participating VRDN Series
FRRI A20, 2.45% (Liquidity
Facility Bank of New York
NA) (a)(e)
Merced County Gen. Oblig. 5,800 5,811
TRAN Series 1999 2000, 4%
6/30/00
Metro. Wtr. District Southern
California Series B:
2.5% 3/7/00, CP 3,900 3,900
3.6% 4/10/00, CP 10,300 10,300
Metro. Wtr. District Southern 6,880 6,880
California Wtrwks. Rev.
Participating VRDN Series
Merlots 99 O, 3.75%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Northern California Pwr. 1,300 1,300
Transmission Rev.
Participating VRDN Series
FRRI 16, 2.45% (Liquidity
Facility Bank of New York
NA) (a)(e)
Oakland Rev. Participating 3,000 3,000
VRDN Series Merlots 00 M,
3.3% (Liquidity Facility
First Union Nat'l. Bank,
North Carolina) (a)(e)
Oceanside Multi-family Rev. 6,000 6,000
(Lakeridge Apt. Proj.)
Series 1994, 4% (Continental
Casualty Co. Guaranteed),
VRDN (a)
Orange County Apt. Dev. Rev. 5,000 5,000
(Aliso Creek Proj.) Series
1992 B, 2.35%, LOC Freddie
Mac, VRDN (a)
Orange County Local Trans. 11,300 11,300
Auth. Sales Tax Rev. 2.8%
3/1/00, LOC Cr. Local de
France, CP
Orange County Spl. Fing. 4,000 4,000
Auth. Teeter Plan Rev.
Series C, 2.65% (AMBAC
Insured), VRDN (a)
Paramount Hsg. Auth. 4,700 4,700
Multi-family Hsg. Rev.
(Century Place Apts. Proj.)
Series 1999 A, 2.7% (Fannie
Mae Guaranteed), VRDN (a)(d)
Peninsula Corridor JT Powers 11,900 11,960
Board Farebox Rev. RAN
Series A, 4.45% 10/13/00
Pleasant Hill Redev. Agcy. 1,460 1,460
Multi-family Hsg. Rev.
(Chateau III Proj.) Series
1996 A, 2.55%, (Macengle Sr.
Svcs.) LOC Commerzbank AG,
VRDN (a)(d)
Riverside County School Fing. 4,500 4,510
Auth. Rev. TRAN Series 1999
2000 A, 4% 8/1/00
Sacramento Muni. Util. 13,950 13,950
District Elec. Rev. Series
I, 2.95% 3/6/00, LOC
Bayerische Landesbank
Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP
San Bernardino County Indl. 2,300 2,300
Dev. Auth. Rev. (W&H
Voortman, Inc. Proj.) 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Diego County Reg'l. $ 10,900 $ 10,900
Trans. Commission Sales Tax
Rev. Series A, 2.8% 3/1/00
(Liquidity Facility Morgan
Guaranty Trust Co., NY), CP
San Diego Unified School 3,700 3,715
District TRAN 4.25% 9/29/00
San Francisco Bay Area 6,500 6,500
Transit Fing. Auth. Series
A, 2.9% 3/3/00, LOC
Bayerische Landesbank
Girozentrale, CP
San Francisco City & County
Participating VRDN:
Series BA 96 AA2, 3.46% 1,740 1,740
(Liquidity Facility Bank of
America NA) (a)(e)
Series BA 96 AA3, 3.46% 4,210 4,210
(Liquidity Facility Bank of
America NA) (a)(e)
Series BA 96 AA4, 3.46% 4,450 4,450
(Liquidity Facility Bank of
America NA) (a)(e)
San Francisco City & County 6,900 6,900
Arpt. Commission Int'l.
Arpt. Rev. Participating
VRDN Series SSP 32, 3.02%
(Liquidity Facility Chase
Manhattan Bank) (a)(d)(e)
San Juan Unified School 17,230 17,230
District Participating VRDN
Series FRRI A41, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
San Leandro Multi-family Hsg. 5,000 5,000
Rev. (Carlton Plaza Proj.)
2.55%, LOC Commerzbank AG,
VRDN (a)(d)
San Luis Obispo County Office 10,400 10,412
of Ed. TRAN Series 1999,
3.75% 6/30/00
Santa Clara County Gen. 9,000 9,000
Oblig. Participating VRDN
Series FRRI A18, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
Santa Rosa Multi-Family Hsg. 5,750 5,750
Rev. (Quail Run Apts./Santa
Rosa Hsg. Partners Proj.)
Series 1997 A, 2.55%, LOC
U.S. Bank NA, Minnesota,
VRDN (a)(d)
Solano County Gen. Oblig. BAN 4,400 4,424
4.5% 12/15/00
South Coast Local Ed. Agcy. 3,700 3,707
TRAN Series 1999 A, 4%
6/30/00 (MBIA Insured)
Univ. of California Revs.:
Rfdg. Participating VRDN 20,000 20,000
Series 1997 G, 3.75%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Series A, 3.15% 4/5/00, CP 2,600 2,600
871,017
GUAM - 0.5%
Guam Pwr. Auth. Rev. 5,545 5,545
Participating VRDN Series PA
531, 3.71% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PUERTO RICO - 0.4%
Puerto Rico Elec. Pwr. Auth. $ 5,000 $ 5,000
Pwr. Rev. Participating VRDN
Series ROC 2 99 3, 3.61%
(Liquidity Facility Salomon
Smith Barney Hldgs., Inc.)
(a)(e)
SHARES
OTHER - 19.7%
Municipal Central Cash Fund, 223,931,787 223,932
3.87% (b)(c)
TOTAL INVESTMENT PORTFOLIO - 1,105,494
97.0%
NET OTHER ASSETS - 3.0% 34,035
NET ASSETS - 100% $ 1,139,529
</TABLE>
Total Cost for Income Tax Purposes $ 1,105,494
SECURITY TYPE ABBREVIATIONS
BAN - BOND ANTICIPATION NOTE
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
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.
INCOME TAX INFORMATION
At February 29, 2000, the fund had a capital loss carryforward of
approximately $462,000 of which $422,000 and $40,000 will expire on
February 28, 2003 and 2006, respectively.
During the fiscal year ended February 29, 2000, 100% of the fund's
income dividends was free from federal income tax, and 29.14% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) FEBRUARY
29, 2000
ASSETS
Investment in securities, at $ 1,105,494
value - See accompanying
schedule
Receivable for investments 20,284
sold
Receivable for fund shares 4,688
sold
Interest receivable 11,315
TOTAL ASSETS 1,141,781
LIABILITIES
Payable for fund shares $ 1,659
redeemed
Distributions payable 126
Accrued management fee 458
Other payables and accrued 9
expenses
TOTAL LIABILITIES 2,252
NET ASSETS $ 1,139,529
Net Assets consist of:
Paid in capital $ 1,139,998
Accumulated net realized gain (469)
(loss) on investments
NET ASSETS, for 1,139,994 $ 1,139,529
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,139,529
(divided by) 1,139,994
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED FEBRUARY 29, 2000
INTEREST INCOME $ 38,953
EXPENSES
Management fee $ 5,993
Non-interested trustees' 4
compensation
Total expenses before 5,997
reductions
Expense reductions (73) 5,924
NET INTEREST INCOME 33,029
NET REALIZED GAIN (LOSS) ON 133
INVESTMENT SECURITIES
NET INCREASE IN NET ASSETS $ 33,162
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 29, 2000 YEAR ENDED FEBRUARY 28, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 33,029 $ 36,524
Net realized gain (loss) 133 23
NET INCREASE (DECREASE) IN 33,162 36,547
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (33,029) (36,524)
from net interest income
Share transactions at net 1,052,760 1,272,706
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 31,293 35,094
distributions from net
interest income
Cost of shares redeemed (1,174,077) (1,431,158)
NET INCREASE (DECREASE) IN (90,024) (123,358)
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) (89,891) (123,335)
IN NET ASSETS
NET ASSETS
Beginning of period 1,229,420 1,352,755
End of period $ 1,139,529 $ 1,229,420
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .028 .028 .032 .031 .035
Operations Net interest
income
Less Distributions
From net interest income (.028) (.028) (.032) (.031) (.035)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A, B 2.79% 2.84% 3.26% 3.18% 3.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,140 $ 1,229 $ 1,353 $ 1,344 $ 1,307
(in millions)
Ratio of expenses to average .50% .50% .45% C .35% C .31% C
net assets
Ratio of expenses to average .49% D .49% D .45% .34% D .31%
net assets after expense
reductions
Ratio of net interest income 2.75% 2.81% 3.21% 3.14% 3.55%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
C 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.
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
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.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 29, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CA MUNICIPAL MONEY 2.69% 15.45% 34.87%
MARKET
California Tax-Free Money 2.51% 15.15% 34.79%
Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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 one year average represents a peer group of 44
money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 29, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CA MUNICIPAL MONEY 2.69% 2.92% 3.04%
MARKET
California Tax-Free Money 2.51% 2.86% 3.03%
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
2/28/00 11/29/99 8/30/99 5/31/99 3/1/99
California Municipal Money 2.48% 3.05% 2.55% 2.57% 2.26%
Market
California Tax-Free Money 2.28% 2.91% 2.40% 2.55% 2.17%
Market Funds Average
California Municipal Money 4.26% 5.24% 4.38% 4.42% 3.88%
Market Tax-equivalent
Portion of fund's income 26.34% 21.79% 21.48% 16.86% 20.53%
subject to state taxes
Row: 1, Col: 1, Value: 2.48
Row: 1, Col: 2, Value: 2.28
Row: 2, Col: 1, Value: 3.05
Row: 2, Col: 2, Value: 2.91
Row: 3, Col: 1, Value: 2.55
Row: 3, Col: 2, Value: 2.4
Row: 4, Col: 1, Value: 2.57
Row: 4, Col: 2, Value: 2.55
Row: 5, Col: 1, Value: 2.26
Row: 5, Col: 2, Value: 2.17
4% -
3% -
2% -
1% -
0%
California Municipal
Money Market
California Tax-Free
Money Market
Funds Average
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 2000 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.
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.
(checkmark)
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 12 MONTHS THAT
ENDED FEBRUARY 29, 2000, DIANE?
A. Economic growth was solid throughout the period. The wealth effect
created by appreciating equity and real estate markets fueled consumer
spending, a significant component of gross domestic product. Growth in
real GDP - gross domestic product adjusted for inflation - was 4.6% in
1999, including a rate of 7.3% in the fourth quarter, its largest gain
in three years. Meanwhile, unemployment hit record lows; it ended 1998
at 4.4% and trended downward throughout 1999, ultimately falling to
4.0% in January 2000, the lowest jobless rate since 1970. With
economic growth this strong and employment this tight, wage pressures
were expected to carry through to the consumer in the form of higher
prices. In large part, though, increased productivity offset
inflationary tendencies. In spite of this relatively tame inflation
backdrop, the Federal Reserve Board felt that action was warranted on
its part. Striking against inflation before it emerged, the Fed raised
the rate banks charge each other for overnight loans - known as the
fed funds target rate - four times, in June, August, and November
1999, and in February 2000. These rate hikes brought the fed funds
target rate up to 5.75% by the end of the period.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. The overriding issue in the California municipal money market was
heavy demand but not enough supply. The combination of these technical
factors caused yields on many California municipal money market
securities to fall to relatively unattractive levels. As a result, I
turned some of my focus - within the limits set by the fund's
prospectus - to out-of-state investment opportunities that offered
more appealing after-tax yields than tax-free alternatives in the
California market. Even though more of shareholders' income will be
taxable at the state level this year because of the out-of-state
investments, I pursued this strategy so the fund could provide higher
yields on a tax-adjusted basis than if I had chosen to invest the same
assets in significantly lower-yielding, tax-exempt California
securities. In addition, for most of the period the fund's average
maturity was longer than its peers, during a time when yields were
expected to move higher. This approach may seem inconsistent with my
fundamental outlook for higher yields in the future. Typically, in a
rising interest-rate environment I would maintain a relatively short
average maturity to enable the fund to re-invest maturing assets at
new, higher rates. However, because of the supply/demand imbalance
within the California market, short-term California money market
securities offered very unattractive yields. As a result, I purchased
longer-term money market securities during periods when they offered
yields that I felt compensated the fund adequately given my outlook
for rising interest rates.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 29, 2000, was 2.49%,
compared to 2.24% 12 months ago. The latest yield was the equivalent
of a 4.28% 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 February 29,
2000, the fund's 12-month total return was 2.69%, compared to 2.51%
for the California tax-free money market funds average, according to
IBC Financial Data, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. Recently, hints of higher prices have emerged, led by increases in
energy prices and higher mortgage rates resulting from rising interest
rates. This change , combined with the continued strength of the U.S.
economy, is likely to prompt the Fed to continue raising short-term
interest rates. The market has priced in at least two more 0.25
percentage point increases in the Fed funds target rate, and the Fed
may be even more aggressive if price increases accelerate. Assets
continue to flow into California municipal money market funds, so I
expect the technical pressures that have characterized the state's
municipal money market to continue. As a result, I anticipate
continuing to look for out-of-state investment opportunities that
offer more attractive yields than those found in California. In
addition, if longer-term securities continue to be relatively
attractive, the fund may have a longer maturity than its peers.
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 February 29,
2000, more than $1.8
billion
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in
1992
(checkmark)
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.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 2/29/00 % OF FUND'S INVESTMENTS 8/31/99 % OF FUND'S INVESTMENTS 2/28/99
0 - 30 76.2 67.4 74.3
31 - 90 3.6 17.4 5.4
91 - 180 15.0 1.2 12.6
181 - 397 5.2 14.0 7.7
WEIGHTED AVERAGE MATURITY
2/29/00 8/31/99 2/28/99
Fidelity California
Municipal 37 DAYS 57 Days 41 Days
Money Market Fund
California Tax Free Money 41 DAYS 58 Days 40 Days
Market Funds Average *
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF FEBRUARY 29, 2000 AS OF AUGUST 31, 1999
Variable Rate Demand Notes Variable Rate Demand Notes
(VRDNs) 46.5% (VRDNs) 38.0%
Commercial Paper (including Commercial Paper (including
CP Mode) 11.2% CP Mode) 14.5%
Tender Bonds 0.2% Tender Bonds 4.6%
Municipal Notes 18.2% Municipal Notes 20.4%
Municipal Money Market Funds Municipal Money Market Funds
19.6% 19.6%
Other Investments and Net Other Investments and Net
Other Assets 4.3% Other Assets 2.9%
</TABLE>
Row: 1, Col: 1, Value: 46.5
Row: 1, Col: 2, Value: nil
Row: 1, Col: 3, Value: 11.2
Row: 1, Col: 4, Value: 0.2
Row: 1, Col: 5, Value: 18.2
Row: 1, Col: 6, Value: 4.3
Row: 1, Col: 7, Value: 19.6
Row: 1, Col: 8, Value: 4.3
Row: 1, Col: 1, Value: 38.0
Row: 1, Col: 2, Value: 14.5
Row: 1, Col: 3, Value: 14.5
Row: 1, Col: 4, Value: 4.6
Row: 1, Col: 5, Value: 20.4
Row: 1, Col: 6, Value: 2.5
Row: 1, Col: 7, Value: 19.6
Row: 1, Col: 8, Value: 2.9
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS FEBRUARY 29, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 96.9%
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 75.0%
Alameda County Ind. Dev. $ 1,750 $ 1,750
Auth. Rev. Rfdg. (Longview
Fibre Co. Proj.) Series
1988, 4.15%, LOC ABN-AMRO
Bank NV, VRDN (a)
Anaheim Hsg. Auth. 5,000 5,000
Multi-family Hsg. Rev. (Bel
Age Apt. Proj.) 2.4% (Fannie
Mae Guaranteed), VRDN (a)(d)
Berkeley Gen. Oblig. BAN 8,300 8,331
Series 1999 2000, 4.25%
12/14/00
California Cmnty. College 11,900 11,909
Fing. Auth. Rev. TRAN Series
1999 B, 4% 7/28/00 (FSA
Insured)
California Dept. of Wtr. 2,038 2,038
Resources Central Valley
Proj. Wtr. Sys. Rev. Series
1, 3% 3/10/00, CP
California Econ. Dev. Fing. 1,000 1,000
Auth. Ind. Dev. Rev.
(Kuhnash Properties III,
LLC/Arkay Plastics, LLC
Proj.) Series 1997, 3.75%,
LOC PNC Bank NA, VRDN (a)(d)
California Econ. Dev. Fing.
Auth. Rev. (California
Independent Sys. Operator
Corp. Proj.):
Series 1998 A, 2.4%, LOC Bank 6,500 6,500
of America NA, VRDN (a)
Series 1998 C, 2.3%, LOC Bank 13,200 13,200
of America NA, VRDN (a)
Series 1998 D, 2.4%, LOC Bank 15,000 15,000
of America NA, VRDN (a)
California Ed. Facilities
Auth. Rev. Participating VRDN:
Series FRRI 37, 2.55% 5,200 5,200
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Series MSDW 98 113, 3.16% 2,520 2,520
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
California Gen. Oblig.:
Bonds Series BJ, 3.2%, tender 3,270 3,270
6/1/00 (d)
Participating VRDN:
Series 990501 Class A, 3.61% 8,000 8,000
(Liquidity Facility
Citibank, New York NA) (a)(e)
Series A39, 2.45% (Liquidity 80,600 80,598
Facility Bank of New York
NA) (a)(e)
Series Merlots 00 A, 3.8% 17,500 17,500
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(d)(e)
Series Merlots 99 M, 3.75% 16,000 16,000
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Series MSDW 98 194, 3.16% 4,000 4,000
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
Series MSDW 98 195, 3.16% 4,120 4,120
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
Series PA 315, 3.16% 2,100 2,100
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: -
continued
Participating VRDN:
Series PA 607R, 3.11% $ 2,100 $ 2,100
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
Series PT 1211, 3.11% 15,990 15,990
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
Series Putters 132, 3.16% 22,215 22,215
(Liquidity Facility J.P.
Morgan & Co., Inc.) (a)(e)
Series Putters 142, 3.18% 1,300 1,300
(Liquidity Facility Morgan
Guaranty Trust Co., NY)
(a)(e)
Series SGB 7, 3.61% 2,700 2,700
(Liquidity Facility Societe
Generale) (a)(e)
RAN Series A, 4% 6/30/00 14,655 14,688
2.3% 3/2/00, CP 3,600 3,600
2.55% 3/14/00, CP 6,200 6,200
2.65% 3/14/00, CP 9,000 9,000
2.7% 3/9/00, CP 11,100 11,100
2.7% 4/6/00, CP 30,900 30,900
2.8% 3/3/00, CP 3,700 3,700
3.1% 3/13/00, CP 37,600 37,600
3.4% 4/6/00, CP 8,800 8,800
California Health Facilities
Fing. Auth. Rev.:
Participating VRDN Series 8,940 8,940
1990, 3.16% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (a)(e)
(Sutter Health Proj.) Series 9,400 9,400
1996 B, 3.2% (AMBAC
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 BA 96 D1, 3.46% 3,225 3,225
(Liquidity Facility Bank of
America NA) (a)(d)(e)
Series PA 58, 3.11% 2,040 2,040
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
Series PA 90, 3.16% 110 110
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PA 112, 3.16% 1,776 1,776
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
Series PT 14, 3.11% 2,240 2,240
(Liquidity Facility
Commerzbank AG) (a)(e)
Series PT 40A, 3.16% 4,255 4,255
(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:
Series PT 40B, 3.16% $ 10,110 $ 10,110
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
Series PT 40D, 3.16% 40 40
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(d)(e)
California Hsg. Fin. Agcy. 13,765 13,765
Single Family Mtg. Bonds
Series 1999 E, 3.4% 8/1/00
(CDC Fdg. Corp. Guaranteed)
(d)
California Poll. Cont. Fing.
Auth. Rev.:
Bonds (Southern California 3,600 3,600
Edison Co. Proj.) Series
1985 C, 3.15% tender
4/14/00, CP mode
(Pacific Gas & Elec. Co.
Proj.):
Series 1996 B, 2.45%, LOC 10,000 10,000
RaboBank Nederland Coop.
Central, VRDN (a)(d)
Series 1997 C, 3.25%, LOC KBC 2,800 2,800
Bank, NV, VRDN (a)(d)
Series E, 3.3%, LOC Morgan 25,600 25,600
Guaranty Trust Co., NY,
VRDN (a)
(Southern California Edison 2,800 2,800
Co. Proj.) Series 1986 A,
3.35%, VRDN (a)
Rfdg. (Pacific Gas & Elec.Co. 3,100 3,100
Proj.) Series 1996 G, 3.2%,
VRDN (a)
California Poll. Cont. Fing.
Auth. Solid Waste Disp. Rev.:
(New United Material 7,615 7,615
Manufacturing Proj.) 2.7%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Western Waste Industries 3,000 3,000
Proj.) Series 1994 A, 2.8%,
LOC BankBoston NA, VRDN
(a)(d)
California Pub. Works Board
Lease Rev. Participating VRDN:
Series 2000 B, 3.49% 2,600 2,600
(Liquidity Facility Bank of
America NA) (a)(e)
Series MSDW 00 210, 3.16% 3,045 3,045
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
California School Cash 60,935 61,071
Reserve Prog. Auth. TRAN
Series 1999 A, 4% 7/3/00
(AMBAC Insured)
California School Fin. Auth. 7,800 7,820
BAN Series A, 4.25% 10/1/00
California Statewide Cmntys.
Dev. Auth. Multi-family Rev.:
(One Park Place Proj.) Series 4,000 4,000
1999, 2.45%, (Irvine Apt.
Cmnty.) LOC Bank of America
NA, VRDN (a)(d)
(Sunrise of Danville Proj.) 6,165 6,165
2.4%, LOC Commerzbank AG,
VRDN (a)(d)
(Sunrise of Moraga Proj.) 1,200 1,200
Series 1997 G, 2.55%, LOC
Commerzbank AG, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Statewide Cmntys.
Dev. Auth. Rev.:
(JTF Enterprises LLC Proj.) $ 3,000 $ 3,000
Series 1996 A, 2.6%, LOC
Bank of America NA, VRDN
(a)(d)
TRAN (Riverside Co. Proj.) 25,300 25,383
Series C2, 4% 9/29/00
California Statewide Cmntys. 4,550 4,550
Dev. Auth. Rev. Ctfs. of
Prtn. (Saint Joseph Health
Sys. Proj.) 2.5%, VRDN (a)
California Statewide Cmntys.
Dev. Corp. Rev.:
(Andercraft Prod., Inc. 525 525
Proj.) Series 1989, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Bro-Co. Gen. Partnership 3,160 3,160
Proj.) Series 1990, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Cordeiro Vault Co., Inc. 990 990
Proj.) Series 1996 M, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Duke, Inc. Proj.) Series 1,230 1,230
1996 E, 2.6%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Evapco, Inc. Proj.) Series 1,330 1,330
1996 K, 2.6%, LOC Bank of
America NA, VRDN (a)(d)
(Fibrebond West, Inc. Proj.) 3,700 3,700
Series 1996 N, 2.6%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Fulton Properties Ltd., Inc. 3,095 3,095
Proj.) Series 1996 F, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Lansmont Corp. Proj.) Series 2,085 2,085
1996 G, 2.6%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Lynwood Enterprises LLC 3,400 3,400
Proj.) Series 1997 D, 2.6%,
LOC Fleet Nat'l. Bank, VRDN
(a)(d)
(Merrill Packaging Proj.) 1,460 1,460
2.6%, LOC Wells Fargo Bank
NA, San Francisco, VRDN
(a)(d)
(Peet's Coffee & Tea, Inc. 2,180 2,180
Proj.) Series 1995 E, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Redline Synthetic Oil Corp. 1,000 1,000
Proj.) 2.6%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Setton Properties, Inc. 2,560 2,560
Proj.) Series 1995 E, 2.6%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Sunclipse, Inc., Union City 2,135 2,135
Proj.) Series 1989, 2.6%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Sys. Engineering & Mgmt. Co. 1,470 1,470
Proj.) 2.6%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Tri-Valleys Growers Proj.) 1,900 1,900
Series 1995 F, 2.6%, LOC
ABN-AMRO Bank NV, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Statewide Cmntys.
Dev. Corp. Rev.: - continued
(W&H Voortman, Inc. Proj.) $ 960 $ 960
Series 1990, 2.6%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
Central Valley Schools Fin. 12,900 12,900
Auth. Participating VRDN
Series FRRI 99 A45, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
Chula Vista Ind. Dev. Rev.
Bonds (San Diego Gas & Elec.
Co. Proj.) Series C:
3.05% tender 3/6/00, CP mode 10,000 10,000
(d)
3.15% tender 4/13/00, CP mode 2,400 2,400
(d)
Contra Costa County TRAN 2,400 2,408
Series A, 4% 9/29/00
Elsinore Valley Muni. Wtr. 7,700 7,700
District Ctfs. of Prtn.
Series A, 2.4% (FGIC
Insured), VRDN (a)
Fowler Ind. Dev. Auth. Ind. 4,200 4,200
Dev. Rev. (Bee Sweet Citrus,
Inc. Proj.) Series 1995,
2.8%, LOC Bank of America
NA, VRDN (a)(d)
Fremont Gen. Oblig. TRAN 3.5% 6,400 6,403
6/30/00
Fresno County Gen. Oblig. 20,000 20,046
TRAN 4% 6/30/00
Kern County Gen. Oblig. TRAN 12,600 12,629
4% 6/30/00
Lassen Muni. Util. District 2,765 2,765
Rev. Rfdg. Series 1996 A,
2.75% (FSA Insured) (BPA Cr.
Local de France), VRDN (a)(d)
Long Beach Hbr. Rev.:
Participating VRDN:
Series FRRI A7, 2.55% 9,900 9,900
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
Series SG 73, 3.16% 3,000 3,000
(Liquidity Facility Societe
Generale) (a)(d)(e)
Series A:
2.4% 3/6/00, CP (d) 4,000 4,000
2.85% 3/1/00, CP (d) 11,600 11,600
Los Angeles County Gen. 58,550 58,670
Oblig. TRAN Series 1999
2000, 4% 6/30/00
Los Angeles County Metro.
Trans. Auth. Rev.
Participating VRDN:
Series SGB 2, 3.61% 26,850 26,850
(Liquidity Facility Societe
Generale) (a)(e)
Series SGB 3, 3.61% 5,500 5,500
(Liquidity Facility Societe
Generale) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles County Metro.
Trans. Auth. Sales Tax Rev.:
Participating VRDN:
Series FRRI 30, 2.45% $ 1,900 $ 1,900
(Liquidity Facility Bank of
New York NA) (a)(e)
Series SG 46, 3.11% 2,930 2,930
(Liquidity Facility Societe
Generale) (a)(e)
Series SG 54, 3.11% 2,525 2,525
(Liquidity Facility Societe
Generale) (a)(e)
Series 1993 A, 2.4% (MBIA 20,455 20,455
Insured) (BPA Cr. Local de
France), VRDN (a)
Los Angeles County Schools 14,100 14,149
Pooled Fing. Prog. Ctfs. of
Prtn. TRAN (Pooled Trans.
Proj.) Series B, 4% 9/29/00
(FSA Insured)
Los Angeles Dept. Arpts. Rev. 3,400 3,400
Participating VRDN Series SG
61, 3.16% (Liquidity
Facility Societe Generale)
(a)(d)(e)
Los Angeles Dept. Wtr. & Pwr.
Wtrwks. Rev.:
Participating VRDN Series 11,500 11,500
1999 L, 3.75% (Liquidity
Facility First Union Nat'l.
Bank, North Carolina) (a)(e)
3.15% 4/5/00, LOC Bayerische 7,600 7,600
Landesbank Girozentrale, LOC
Bank of America NA, CP
Los Angeles Gen. Oblig. TRAN 27,200 27,257
Series 1999, 4% 6/30/00
Los Angeles Hbr. Dept. Rev.
Participating VRDN:
Series FRRI 7, 2.55% 8,520 8,520
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
Series FRRI A17, 2.6% 3,000 3,000
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series SG 59, 3.16% 4,725 4,725
(Liquidity Facility Societe
Generale) (a)(d)(e)
Los Angeles Unified School
District:
Bonds Series 1999 C, 4% 7/1/00 7,715 7,731
Participating VRDN:
Series 1999 A19, 2.45% 8,500 8,500
(Liquidity Facility Bank of
New York NA) (a)(e)
Series MS 98 60, 3.16% 4,345 4,345
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
TRAN Series 1999 2000 A, 4% 4,000 4,009
6/30/00
Los Angeles Wastewtr. Sys.
Rev.:
Participating VRDN Series SGA 6,970 6,970
26, 3% (Liquidity Facility
Societe Generale) (a)(e)
3.3% 3/16/00, LOC UBS AG, LOC 6,500 6,500
Morgan Guaranty Trust Co.,
NY, CP
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Rios Cmnty. College $ 17,100 $ 17,100
District Participating VRDN
Series FRRI A42, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
M-S-R Pub. Pwr. Agcy. San 8,700 8,700
Juan Proj. Rev. Sub Lien
Series F, 3.2% (MBIA
Insured) (BPA Bank One NA,
Chicago), VRDN (a)
Marin County Gen. Oblig. 19,280 19,280
Participating VRDN Series
FRRI A20, 2.45% (Liquidity
Facility Bank of New York
NA) (a)(e)
Merced County Gen. Oblig. 4,700 4,709
TRAN Series 1999 2000, 4%
6/30/00
Metro. Wtr. District Southern 6,100 6,100
California Series B, 2.5%
3/7/00, CP
Metro. Wtr. District Southern 9,500 9,500
California Wtrwks. Rev.
Participating VRDN Series
Merlots 99 O, 3.75%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Newark Ind. Dev. Auth. Rev. 3,000 3,000
(Gas Tech Proj.) Series 1989
A, 3.8%, LOC Chase Manhattan
Bank, VRDN (a)(d)
Northern California Pwr. 1,300 1,300
Transmission Rev.
Participating VRDN Series
FRRI 16, 2.45% (Liquidity
Facility Bank of New York
NA) (a)(e)
Oakland Gen. Oblig. TRAN 5,000 5,016
Series 1999 2000, 4.25%
9/29/00
Oceanside Multi-family Rev. 6,700 6,700
(Lakeridge Apt. Proj.)
Series 1994, 4% (Continental
Casualty Co. Guaranteed),
VRDN (a)
Orange County Apt. Dev. Rev.:
(Aliso Creek Proj.) Series 8,025 8,025
1992 B, 2.35%, LOC Freddie
Mac, VRDN (a)
(Riverbend Apts. Proj.) 20,000 20,000
Series 1999 B, 2.4%, LOC
Freddie Mac, VRDN (a)
Orange County Local Trans. 14,700 14,700
Auth. Sales Tax Rev. 2.8%
3/1/00, LOC Cr. Local de
France, CP
Orange County Spl. Fing. 22,300 22,300
Auth. Teeter Plan Rev.
Series C, 2.65% (AMBAC
Insured), VRDN (a)
Oxnard Redev. Agcy. Ctfs. of 3,195 3,195
Prtn. (Channel Islands Bus.
Ctr. Proj.) 4.225%, (Told
Corp.) 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, 2.7% (Fannie
Mae Guaranteed), VRDN (a)(d)
Peninsula Corridor JT Powers 15,100 15,176
Board Farebox Rev. RAN
Series A, 4.45% 10/13/00
Pittsburg Multi-family Mtg. 7,800 7,800
Rev. (Fountain Plaza Apt.
Proj.) 3.85% (700 Market
Assoc.) (Fannie Mae
Guaranteed), VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Placer County Union High $ 4,000 $ 4,011
School District TRAN 4.125%
10/1/00
Pleasant Hill Redev. Agcy. 710 710
Multi-family Hsg. Rev.
(Chateau III Proj.) Series
1996 A, 2.55%, (Macengle Sr.
Svcs.) LOC Commerzbank AG,
VRDN (a)(d)
Port of Oakland Port Rev.
Participating VRDN:
Series FRRI A1, 2.55% 3,400 3,400
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series FRRI A24, 2.55% 11,925 11,925
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Riverside County School Fing. 5,500 5,512
Auth. Rev. TRAN Series 1999
2000 A, 4% 8/1/00
Sacramento Muni. Util. 4,000 4,000
District Elec. Rev.
Participating VRDN Series
SGB 4, 3.61% (Liquidity
Facility Societe Generale)
(a)(e)
San Bernardino County Indl.
Dev. Auth. Rev.:
(McClain Citrus, Inc. Proj.) 3,000 3,000
2.6%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(NRI, Inc. Proj.) 2.6%, LOC 1,425 1,425
California Teachers
Retirement Sys., VRDN (a)(d)
San Diego County Reg'l. 7,300 7,300
Trans. Commission Sales Tax
Rev. Series A, 2.8% 3/1/00
(Liquidity Facility Morgan
Guaranty Trust Co., NY), CP
San Diego Unified School 4,600 4,619
District TRAN 4.25% 9/29/00
San Francisco Bay Area Rapid 1,250 1,250
Trans. District Sales Tax
Rev. Participating VRDN
Series PA 572, 3.11%
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
San Francisco City & County
Participating VRDN:
Series BA 96 AA1, 3.46% 3,775 3,775
(Liquidity Facility Bank of
America NA) (a)(e)
Series BA 96 AA2, 3.46% 2,240 2,240
(Liquidity Facility Bank of
America NA) (a)(e)
San Francisco City & County
Arpt. Commission Int'l.
Arpt. Rev.:
Participating VRDN:
Series MS 98 31, 3.16% 6,000 6,000
(Liquidity Facility Bank of
America NA) (a)(e)
Series SSP 32, 3.02% 23,600 23,600
(Liquidity Facility Chase
Manhattan Bank) (a)(d)(e)
Series A:
2.65% 3/10/00, LOC Societe 4,700 4,700
Generale, CP (d)
3.3% 3/16/00, CP (d) 2,700 2,700
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County $ 10,075 $ 10,075
Parking Meter Rev.
Participating VRDN Series BA
96A, 3.11% (Liquidity
Facility Bank of America NA)
(a)(e)
San Francisco City & County 3,700 3,700
Swr. Rev. Participating VRDN
Series MSDW 00 237, 3.16%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
San Francisco County & City
Redev. Agcy. Participating
VRDN:
Series 1997 T, 3.11% 3,700 3,700
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(e)
Series PT 125, 3.11% 3,055 3,055
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
San Joaquin County Trans. 5,900 5,900
Auth. Sales Tax Rev. 3.1%
3/16/00, LOC Westdeutsche
Landesbank Girozentrale, CP
San Jose Multi-Family Hsg. 4,000 4,000
Rev. (Carlton Plaza Proj.)
Series 1998 A, 2.62%, LOC
Commerzbank AG, VRDN (a)(d)
San Juan Unified School 16,700 16,700
District Participating VRDN
Series FRRI A41, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
San Leandro Multi-family Hsg. 3,220 3,220
Rev. (Carlton Plaza Proj.)
2.55%, LOC Commerzbank AG,
VRDN (a)(d)
San Luis Obispo County Office 12,475 12,490
of Ed. TRAN Series 1999,
3.75% 6/30/00
Santa Clara County Gen. 11,000 11,000
Oblig. Participating VRDN
Series FRRI A18, 2.45%
(Liquidity Facility Bank of
New York NA) (a)(e)
Santa Cruz Indl. Dev. Auth. 2,505 2,505
Rev. (Santa Cruz-Wilson
Entities Ltd. Proj.) Series
1993, 2.6%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
Santa Rosa Multi-Family Hsg. 1,750 1,750
Rev. (Quail Run Apts./Santa
Rosa Hsg. Partners Proj.)
Series 1997 A, 2.55%, LOC
U.S. Bank NA, Minnesota,
VRDN (a)(d)
Solano County Gen. Oblig. BAN 6,600 6,635
4.5% 12/15/00
South Coast Local Ed. Agcy. 4,480 4,489
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, 3.11% (Liquidity
Facility Societe Generale)
(a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Univ. of California Revs.:
Participating VRDN Series PA $ 2,000 $ 2,000
529, 3.11% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
Rfdg. Participating VRDN 13,430 13,430
Series 1997 G, 3.75%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(e)
Series A:
3.15% 4/5/00, CP 3,400 3,400
3.55% 4/11/00, CP 5,000 5,000
1,384,963
GUAM - 0.4%
Guam Pwr. Auth. Rev. 6,500 6,500
Participating VRDN Series PA
531, 3.71% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
PUERTO RICO - 1.9%
Puerto Rico Commonwealth Gen. 6,000 6,000
Oblig. Participating VRDN
Series PT 1226, 3.11%
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(e)
Puerto Rico Commonwealth Hwy.
& Trans. Auth. Trans. Rev.
Participating VRDN:
Series ROC 2 99 1, 3.61% 6,000 6,000
(Liquidity Facility Salomon
Smith Barney Hldgs., Inc.)
(a)(e)
Series ROC 2 99 2, 3.61% 10,000 10,000
(Liquidity Facility Salomon
Smith Barney Hldgs., Inc.)
(a)(e)
Puerto Rico Elec. Pwr. Auth. 5,400 5,400
Pwr. Rev. Participating VRDN
Series ROC 2 99 3, 3.61%
(Liquidity Facility Salomon
Smith Barney Hldgs., Inc.)
(a)(e)
Puerto Rico Muni. Fin. Agcy. 3,330 3,330
Participating VRDN Series
MSDW 00 225, 3.16%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(e)
Puerto Rico Pub. Fin. Corp. 4,665 4,665
Commonwealth Appropriation
Participating VRDN Series PA
579, 3.11% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(e)
35,395
MUNICIPAL SECURITIES -
CONTINUED
SHARES VALUE (NOTE 1) (000S)
OTHER - 19.6%
Municipal Central Cash Fund, 362,412,265 $ 362,412
3.87% (b)(c)
TOTAL INVESTMENT PORTFOLIO - 1,789,270
96.9%
NET OTHER ASSETS - 3.1% 57,852
NET ASSETS - 100% $ 1,847,122
</TABLE>
Total Cost for Income Tax Purposes $ 1,789,270
SECURITY TYPE ABBREVIATIONS
BAN - BOND ANTICIPATION NOTE
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
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.
INCOME TAX INFORMATION
At February 29, 2000, the fund had a capital loss carryforward of
approximately $352,000 of which $307,000, $7,000, $18,000 and $20,000
will expire on February 28, 2003, 2005, 2006 and 2007, respectively.
During the fiscal year ended February 29, 2000, 100% of the fund's
income dividends was free from federal income tax, and 26.70% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) FEBRUARY
29, 2000
ASSETS
Investment in securities, at $ 1,789,270
value - See accompanying
schedule
Receivable for investments 36,956
sold
Receivable for fund shares 40,515
sold
Interest receivable 16,169
Prepaid expenses 48
TOTAL ASSETS 1,882,958
LIABILITIES
Payable to custodian bank $ 42
Payable for fund shares 34,679
redeemed
Distributions payable 155
Accrued management fee 582
Other payables and accrued 378
expenses
TOTAL LIABILITIES 35,836
NET ASSETS $ 1,847,122
Net Assets consist of:
Paid in capital $ 1,847,483
Accumulated net realized gain (361)
(loss) on investments
NET ASSETS, for 1,847,504 $ 1,847,122
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,847,122
(divided by) 1,847,504
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED FEBRUARY 29, 2000
INTEREST INCOME $ 49,836
EXPENSES
Management fee $ 5,844
Transfer agent fees 2,310
Accounting fees and expenses 178
Non-interested trustees' 5
compensation
Custodian fees and expenses 32
Registration fees 201
Audit 27
Legal 9
Miscellaneous 61
Total expenses before 8,667
reductions
Expense reductions (54) 8,613
NET INTEREST INCOME 41,223
NET REALIZED GAIN (LOSS) ON 130
INVESTMENTS
NET INCREASE (DECREASE) IN $ 41,353
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions:
Custodian credits $ 15
Transfer agent credits 39
$ 54
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 29, 2000 YEAR ENDED FEBRUARY 28, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 41,223 $ 30,238
Net realized gain (loss) 130 (18)
NET INCREASE (DECREASE) IN 41,353 30,220
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (41,223) (30,238)
from net interest income
Share transactions at net 7,583,578 5,945,037
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 40,210 29,603
distributions from net
interest income
Cost of shares redeemed (7,131,026) (5,596,173)
NET INCREASE (DECREASE) IN 492,762 378,467
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 492,892 378,449
IN NET ASSETS
NET ASSETS
Beginning of period 1,354,230 975,781
End of period $ 1,847,122 $ 1,354,230
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED FEBRUARY 28, 2000 C 1999 1998 1997 1996 C
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .027 .027 .030 .029 .032
Operations Net interest
income
Less Distributions
From net interest income (.027) (.027) (.030) (.029) (.032)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 2.69% 2.71% 3.07% 2.90% 3.21%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,847 $ 1,354 $ 976 $ 820 $ 733
(in millions)
Ratio of expenses to average .56% .59% .62% .62% .64%
net assets
Ratio of expenses to average .56% .59% .61% B .61% B .64%
net assets after expense
reductions
Ratio of net interest income 2.67% 2.66% 3.02% 2.86% 3.17%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE YEAR ENDED FEBRUARY 29
NOTES TO FINANCIAL STATEMENTS
For the period ended February 29, 2000
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 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.
Undistributed net interest income and accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences which will reverse in a subsequent period. Any
taxable 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,
2. OPERATING POLICIES -
CONTINUED
WHEN-ISSUED SECURITIES - CONTINUED
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.
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. At the end of the period, no funds had investments in
restricted securities.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $439,952,000 and $490,470,000 respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's 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 .0920% to .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 annual 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 receives a fee that is computed daily at an annual rate
of 0.50% of the fund's average net assets. FMR pays all other
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. 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 $10,000 for the
period.
SUB-ADVISER FEE. As each 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.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
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. 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 annual
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
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. 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 paid premiums of $57,785 for the calendar year 2000 to
FIDFUNDS, which are being amortized over one year. FMR has borne the
cost of Spartan California Municipal Money Market Fund's premium
payable to FIDFUNDS.
5. EXPENSE REDUCTIONS.
Through arrangements with the income fund's and Fidelity California
Municipal Money Market Fund's custodian and transfer agent, 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.
In addition, through arrangements with Spartan California Municipal
Money Market Fund's custodian and transfer agent, credits realized as
a result of uninvested cash balances were used to reduce a portion of
the fund's expenses. For the period, the fund's expenses were reduced
by $73,000 under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity California Municipal Trust and Fidelity
California Municipal Trust II and the Shareholders of Spartan
California Municipal Income fund, Spartan California Municipal Money
Market Fund and Fidelity California Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Spartan California Municipal Income Fund (a fund of Fidelity
California Municipal Trust), Spartan California Municipal Money Market
Fund and Fidelity California Municipal Money Market Fund (funds of
Fidelity California Municipal Trust II) at February 29, 2000, and the
results of their operations, the changes in their net assets and the
financial highlights for the periods indicated, in conformity with
accounting principles generally accepted in the United States. These
financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the funds'
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with auditing standards
generally accepted in the United States which require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at February
29, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 7, 2000
PROXY VOTING RESULTS
A special meeting of Spartan California Municipal Income Fund's
shareholders was held on February 16, 2000. The results of votes taken
among shareholders on proposals before them are reported below. Each
vote reported represents one dollar of net asset value held on the
record date for the meeting.
PROPOSAL 1
To elect a Board of Trustees.*
# OF % OF
VOTES CAST VOTES CAST
RALPH F. COX
Affirmative 718,663,647.32 96.255
Withheld 27,957,812.52 3.745
TOTAL 746,621,459.84 100.000
PHYLLIS BURKE DAVIS
Affirmative 718,151,419.70 96.187
Withheld 28,470,040.14 3.813
TOTAL 746,621,459.84 100.000
ROBERT M. GATES
Affirmative 718,341,808.69 96.212
Withheld 28,279,651.15 3.788
TOTAL 746,621,459.84 100.000
EDWARD C. JOHNSON 3D
Affirmative 718,676,731.12 96.257
Withheld 27,944,728.72 3.743
TOTAL 746,621,459.84 100.000
DONALD J. KIRK
Affirmative 718,218,374.95 96.196
Withheld 28,403,084.89 3.804
TOTAL 746,621,459.84 100.000
NED C. LAUTENBACH
Affirmative 719,213,981.98 96.329
Withheld 27,407,477.86 3.671
TOTAL 746,621,459.84 100.000
# OF % OF
VOTES CAST VOTES CAST
PETER S. LYNCH
Affirmative 718,576,105.73 96.244
Withheld 28,045,354.11 3.756
TOTAL 746,621,459.84 100.000
WILLIAM O. MCCOY
Affirmative 718,982,664.83 96.298
Withheld 27,638,795.01 3.702
TOTAL 746,621,459.84 100.000
GERALD C. MCDONOUGH
Affirmative 718,105,888.19 96.181
Withheld 28,515,571.65 3.819
TOTAL 746,621,459.84 100.000
MARVIN L. MANN
Affirmative 719,019,812.07 96.303
Withheld 27,601,647.77 3.697
TOTAL 746,621,459.84 100.000
ROBERT C. POZEN
Affirmative 718,247,295.76 96.200
Withheld 28,374,164.08 3.800
TOTAL 746,621,459.84 100.000
THOMAS R. WILLIAMS
Affirmative 718,075,056.95 96.177
Withheld 28,546,402.89 3.823
TOTAL 746,621,459.84 100.000
PROPOSAL 2
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of the fund.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 709,546,794.24 95.034
Against 11,503,405.24 1.541
Abstain 25,571,260.36 3.425
TOTAL 746,621,459.84 100.000
PROPOSAL 3
To authorize the Trustees to adopt an amended and restated Declaration
of Trust.*
# OF % OF
VOTES CAST VOTES CAST
Affirmative 646,371,097.65 88.872
Against 35,727,883.82 4.913
Abstain 45,202,816.29 6.215
TOTAL 727,301,797.76 100.000
Not Voting 19,319,662.08
PROPOSAL 4
To approve an amended management contract for the fund.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 672,740,933.05 90.105
Against 25,362,488.04 3.397
Abstain 48,518,038.75 6.498
TOTAL 746,621,459.84 100.000
PROPOSAL 5
To eliminate the fund's fundamental 80% investment policy and adopt a
comparable non-fundamental policy.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 614,789,699.72 84.530
Against 57,045,381.35 7.844
Abstain 55,466,716.69 7.626
TOTAL 727,301,797.76 100.000
Not Voting 19,319,662.08
PROPOSAL 6
To modify the fund's fundamental investment objective and eliminate
certain fundamental investment policies of the fund.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 614,000,678.53 84.422
Against 56,029,401.12 7.703
Abstain 57,271,718.11 7.875
TOTAL 727,301,797.76 100.000
Not Voting 19,319,662.08
PROPOSAL 7
To eliminate the fund's fundamental 20% investment policy.
# OF % OF
VOTES CAST VOTES CAST
Affirmative 605,700,344.04 83.280
Against 62,947,862.74 8.655
Abstain 58,653,590.98 8.065
TOTAL 727,301,797.76 100.000
Not Voting 19,319,662.08
* DENOTES TRUST-WIDE PROPOSALS AND VOTING RESULTS.
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
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(PHONE_GRAPHIC)
FIDELITY AUTOMATED
SERVICE TELEPHONE (FAST SM)
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.
*0 To 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
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FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
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receive a special Fidelity package that includes 30 days of free
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access provider.
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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 1-800-544-0240 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.
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Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75039-5587
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments Money
Management, Inc. (FIMM)
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
Robert A. Dwight, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Maria F. Dwyer, 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
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
Abigail P. Johnson
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
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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 (FAST) SM 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
