Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how each
fund invests and the services available to shareholders.
A Statement of Additional Information dated April 18, 1994 has been filed
with the Securities and Exchange Commission, and is incorporated herein by
reference (is legally considered a part of this prospectus). The Statement
of Additional Information is available free upon request by calling
Fidelity at 1-800-544-8888.
Investments in the money market fund are neither insured nor guaranteed by
the U.S. government, and there can be no assurance that the fund will
maintain a stable $1.00 share price.
Mutual fund shares are not deposits or obligations of, or guaranteed by,
any depository institution. Shares are not insured by the FDIC, the Federal
Reserve Board, or any other agency, and are subject to investment risk,
including the possible loss of principal.
Each of these funds seeks a high level of current income free from federal
income tax and California state personal income tax. The funds have
different strategies, however, and carry varying degrees of risk.
FIDELITY
CALIFORNIA
TAX-FREE
FUNDS
FIDELITY CALIFORNIA TAX-FREE MONEY MARKET PORTFOLIO
FIDELITY CALIFORNIA TAX-FREE INSURED PORTFOLIO
FIDELITY CALIFORNIA TAX-FREE HIGH YIELD PORTFOLIO
PROSPECTUS
APRIL 18, 1994(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON, MA
02109
LIKE ALL MUTUAL
FUNDS, THESE
SECURITIES HAVE NOT
BEEN APPROVED OR
DISAPPROVED BY THE
SECURITIES AND
EXCHANGE
COMMISSION OR ANY
STATE SECURITIES
COMMISSION, NOR HAS
THE SECURITIES AND
EXCHANGE
COMMISSION OR ANY
STATE SECURITIES
COMMISSION PASSED
UPON THE ACCURACY
OR ADEQUACY OF THIS
PROSPECTUS. ANY
REPRESENTATION TO
THE CONTRARY IS A
CRIMINAL OFFENSE.
CFR-pro-494
CONTENTS
KEY FACTS THE FUNDS AT A GLANCE
WHO MAY WANT TO INVEST
EXPENSES Each fund's yearly
operating expenses.
FINANCIAL HIGHLIGHTS A summary
of each fund's financial data.
PERFORMANCE How each fund has
done over time.
THE FUNDS IN DETAIL CHARTER How each fund is
organized.
INVESTMENT PRINCIPLES AND RISKS
Each fund's overall approach to
investing.
BREAKDOWN OF EXPENSES How
operating costs are calculated and
what they include.
YOUR ACCOUNT DOING BUSINESS WITH FIDELITY
TYPES OF ACCOUNTS Different
ways to set up your account.
HOW TO BUY SHARES Opening an
account and making additional
investments.
HOW TO SELL SHARES Taking money
out and closing your account.
INVESTOR SERVICES Services to
help you manage your account.
SHAREHOLDER AND DIVIDENDS, CAPITAL GAINS, AND
ACCOUNT POLICIES TAXES
TRANSACTION DETAILS Share price
calculations and the timing of
purchases and redemptions.
EXCHANGE RESTRICTIONS
KEY FACTS
THE FUNDS AT A GLANCE
MANAGEMENT: Fidelity Management & Research Company (FMR) is the
management arm of Fidelity Investments, which was established in 1946 and
is now America's largest mutual fund manager. FMR Texas Inc. (FTX), a
subsidiary of FMR, chooses investments for California Tax-Free Money
Market.
As with any mutual fund, there is no assurance that a fund will achieve its
goal.
CALIFORNIA MONEY MARKET
GOAL: High current tax-free income for California residents while
maintaining a stable share price.
STRATEGY: Invests in high-quality, short-term securities whose interest is
free from federal income tax and California personal income tax.
CALIFORNIA INSURED
GOAL: High current tax-free income for California residents.
STRATEGY: Invests mainly in long-term securities that are covered by
insurance guaranteeing the timely payment of principal and interest, and
whose interest is free from federal income tax and California personal
income tax.
CALIFORNIA HIGH YIELD
GOAL: High current tax-free income for California residents.
STRATEGY: Invests mainly in long-term investment-grade securities whose
interest is free from federal income tax and California personal income
tax.
WHO MAY WANT TO INVEST
These non-diversified funds may be appropriate for investors in higher tax
brackets who seek high current income that is free from federal and
California income taxes. Each fund's level of risk, and potential reward,
depend on the quality and maturity of its investments. Lower-quality and
longer-term investments typically carry higher risk and yield potential.
Insurance, which covers the timely payment of interest and principal,
provides a high degree of credit quality. However, its cost lowers the
fund's yield. You should consider your tolerance for risk when making an
investment decision.
The value of the funds' investments and the income they generate will vary
from day to day, generally reflecting changes in interest rates, market
conditions, and other federal and state political and economic news. By
themselves, these funds do not constitute a balanced investment plan.
California Tax-Free Money Market is managed to keep its share price stable
at $1.00. When you sell your shares of either of the other funds, they may
be worth more or less than what you paid for them.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy or sell
shares of a fund.
Maximum sales charge on purchases and
reinvested dividends None
Deferred sales charge on redemptions None
Exchange fee None
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each
fund pays a management fee to FMR. It also incurs other expenses for
services such as maintaining shareholder records and furnishing shareholder
statements and financial reports. A fund's expenses are factored into its
share price or dividends and are not charged directly to shareholder
accounts (see page ).
The following are projections based on historical expenses adjusted to
reflect current fees, and are calculated as a percentage of average net
assets.
CALIFORNIA MONEY MARKET
Management fee .41%
12b-1 fee None
Other expenses .23%
Total fund operating expenses .64%
CALIFORNIA INSURED
Management fee .41%
12b-1 fee None
Other expenses .19%
Total fund operating expenses .60%
CALIFORNIA HIGH YIELD
Management fee .41 %
12b-1 fee None
Other expenses .16 %
Total fund operating expenses .57 %
EXAMPLES: Let's say, hypothetically, that each fund's annual return is 5%
and that its operating expenses are exactly as just described. For every
$1,000 you invested, here's how much you would pay in total expenses if you
close your account after the number of years indicated:
After 1 After 3 After 5 After 10
year years years years
California
Money Market $7 $20 $36 $80
California
Insured $6 $19 $33 $75
California
High Yield $6 $18 $32 $71
These examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
FINANCIAL HIGHLIGHTS
The tables that follow have been audited by Price Waterhouse, independent
accountants. Their unqualified reports are included in the funds' Annual
Report. The funds' Annual Report is incorporated by reference into (is
legally a part of) the Statement of Additional Information.
CALIFORNIA TAX-FREE MONEY MARKET
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
1.Selected Per-Share Data
and Ratios
2.Years 1985C 1986D 1987D 1988D 1989D 1990D 1991D 1992D 1993E 1994
ended
February 28
3.Net asset $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
value, 0 0 0 0 0 0 0 0 0 0
beginning of
period
4.Income .046 .048 .038 .042 .052 .054 .047 .035 .019 .020
from
Investment
Operations
Net interest
income
5. Dividend (.046) (.048) (.038) (.042) (.052) (.054) (.047) (.035) (.019) (.020)
s from net
interest
income
6.Net asset $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00 $ 1.00
value, 0 0 0 0 0 0 0 0 0 0
end of period
7.Total 4.48% 4.95% 3.88% 4.27% 5.36% 5.53% 4.85% 3.59% 1.92% 1.97%
returnB
8.Net assets, $ 21,91 $ 120,5 $ 413,4 $ 546,5 $ 735,6 $ 623,7 $ 538,7 $ 556,5 $ 568,2 $ 611,7
end of period 5 94 98 53 23 48 91 16 80 65
(000 omitted)
9.Ratio of .30%A .60% .60% .58% .53% .60% .61% .63% .62%A .64%
expenses to
average net
assetsF
10.Ratios of 1.50% .79% .67% .62% .65% .60% .61% .63% .62%A .64%
expenses to A
average net
assets before
expense
reductions F
11.Ratio of 5.62% 4.92% 3.84% 4.17% 5.31% 5.42% 4.75% 3.50% 2.29% 1.95%
net interest A A
income to
average net
assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN.
C FROM JULY 7, 1984 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1985
D YEARS ENDED APRIL 30
E MAY 1, 1992 TO FEBRUARY 28, 1993
F DURING THE PERIODS SHOWN, FMR VOLUNTARILY REIMBURSED THE FUND FOR CERTAIN
EXPENSES.
CALIFORNIA TAX-FREE INSURED
12.Selected Per-Share
Data and Ratios
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
13.Years ended 1987C 1988D 1989D 1990D 1991D 1992D 1993E 1994
February 28
14.Net asset $ 10.00 $ 9.280 $ 9.200 $ 9.590 $ 9.370 $ 9.740 $ 10.10 $ 11.030
value, beginning of 0 0
period
15.Income from .373 .611 .610 .618 .605 .603 .492 .589
Investment
Operations
Net interest
income
16. Net realized (.720) (.080) .390 (.220) .370 .360 .930 (.090)
and unrealized
gain (loss) on
investments
17. Total from (.347) .531 1.000 .398 .975 .963 1.422 .499
investment
operations
18.Less (.373) (.611) (.610) (.618) (.605) (.603) (.492) (.589)
Distributions
From net interest
income
19. From net -- -- -- -- -- -- -- (.200)
realized gain on
investments
20. Total (.373) (.611) (.610) (.618) (.605) (.603) (.492) (.789)
distributions
21.Net asset $ 9.280 $ 9.200 $ 9.590 $ 9.370 $ 9.740 $ 10.10 $ 11.03 $ 10.740
value, end of 0 0
period
22.Total returnB (3.69) 5.97% 11.20% 4.15% 10.67% 10.14% 14.48% 4.59%
%
23.Net assets, end $ 35,24 $ 42,84 $ 69,35 $ 87,43 $ 113,7 $ 177,7 $ 274,8 $ 291,76
of period (000 7 7 0 8 11 63 72 0
omitted)
24.Ratio of .45%A .65% .83% .75% .72% .66% .63%A .48%
expenses to
average net
assets F
25.Ratio of 1.12%A .88% .83% .75% .72% .66% .63%A .60%
expenses to
average net assets
before expense
reductions F
26.Ratio of net 6.27%A 6.70% 6.54% 6.38% 6.30% 6.06% 5.72%A 5.31%
interest income to
average net assets
27.Portfolio 28%A 76% 32% 10% 14% 19% 27%A 60%
turnover rate
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN.
C FROM SEPTEMBER 18, 1986 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1987
D YEARS ENDED APRIL 30
E MAY 1, 1992 TO FEBRUARY 28, 1993
F DURING THE PERIODS SHOWN, FMR VOLUNTARILY REIMBURSED THE FUND FOR CERTAIN
EXPENSES.
CALIFORNIA TAX-FREE HIGH YIELD
28.Selected
Per-Share Data
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
29.Years 1985C 1986D 1987D 1988D 1989D 1990D 1991D 1992D 1993E 1994
ended
February 28
30.Net asset $ 10.0 $ 10.4 $ 11.51 $ 10.9 $ 10.6 $ 11.08 $ 10.9 $ 11.30 $ 11.54 $ 12.4
value, 00 30 0 50 20 0 40 0 0 30
beginning of
period
31.Income .771 .884 .782 .760 .758 .756 .752 .744 .611 .719
from
Investment
Operations
Net interest
income
32. Net .430 1.080 (.510) (.270) .460 (.140) .360 .240 .890 (.060)
realized and
unrealized
gain
(loss) on
investment
s
33. Total 1.201 1.964 .272 .490 1.218 .616 1.112 .984 1.501 .659
from
investment
operations
34.Less (.771) (.884) (.782) (.760) (.758) (.756) (.752) (.744) (.611) (.719)
Distributions
From net
interest
income
35. From -- -- (.050) (.060) -- -- -- -- -- (.270)
net realized
gain on
investments
36. Total .(.771) (.884) (.832) (.820) (.758) (.756) (.752) (.744) (.611) (.989)
distributions
37.Net asset $ 10.4 $ 11.51 $ 10.9 $ 10.6 $ 11.08 $ 10.9 $ 11.30 $ 11.54 $ 12.4 $ 12.1
value, 30 0 50 20 0 40 0 0 30 00
end of period
38.Total 12.52 19.70 2.22% 4.72% 11.85 5.61% 10.44 8.94% 13.40 5.41%
returnB % % % % %
39.Net $ 30,2 $ 323,6 $ 460,6 $ 399,1 $ 493,9 $ 513,6 $ 523,5 $ 529,4 $ 586,7 $ 575,2
assets, end 35 32 35 86 77 82 90 45 91 89
of period (000
omitted)
40.Ratio of 1.00% .72% .68% .73% .61% .60% .58% .59% .60%A .57%
expenses to A
average net
assetsF
41.Ratio of 1.49% .72% .68% .73% .61% .60% .58% .59% .60%A .57%
expenses to A
average net
assets before
expense
reductionsF
42.Ratio of 9.53% 7.75% 6.68% 7.15% 7.05% 6.73% 6.71% 6.52% 6.17% 5.78%
net interest A A
income to
average net
assets
43.Portfolio 14%A 16% 46% 52% 21% 34% 15% 23% 32%A 44%
turnover rate
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN.
C FROM JULY 7, 1984 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1985
D YEARS ENDED APRIL 30
E MAY 1, 1992 TO FEBRUARY 28, 1993
F DURING THE PERIODS SHOWN, FMR VOLUNTARILY REIMBURSED THE FUND FOR CERTAIN
EXPENSES.
PERFORMANCE
Mutual fund performance can be measured as TOTAL RETURN or YIELD. The total
returns and yields that follow are based on historical fund results.
Each fund's fiscal year runs from March 1 through February 28. The tables
below show each fund's performance over past fiscal years compared to a
measure of inflation. The charts on page 10 help you compare the yields of
these funds to those of their competitors.
AVERAGE ANNUAL TOTAL RETURNS
Fiscal periods ended Past 1 Past 5 Life of
February 28,1994 year years fund
California
Money MarketA 1.97% 3.78% 4.22%
California InsuredB 4.59% 9.32% 7.59%
California
High YieldA 5.41% 9.31% 9.72%
Consumer Price
Index 2.52% 3.82% n/a
CUMULATIVE TOTAL RETURNS
Fiscal periods ended Past 1 Past 5 Life of
February 28, 1994 year years fund
California
Money MarketA 1.97% 20.38% 49.06%
California InsuredB 4.59% 56.12% 72.51%
California
High YieldA 5.41% 56.05% 144.91%
Consumer Price
Index 2.52% 20.64% n/a
A FROM JULY 7, 1984
B FROM SEPTEMBER 18, 1986
UNDERSTANDING
PERFORMANCE
YIELD illustrates the income
earned by a fund over a
recent period. Seven-day
yields are the most common
illustration of money market
performance. 30-day yields
are usually used for bond
funds. Yields change daily,
reflecting changes in interest
rates.
TOTAL RETURN reflects both the
reinvestment of income and
capital gain distributions, and
any change in a fund's share
price.
(checkmark)
EXPLANATION OF TERMS
TOTAL RETURN is the change in value of an investment in a fund over a given
period, assuming reinvestment of any dividends and capital gains. A
CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of
time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that,
if achieved annually, would have produced the same cumulative total return
if performance had been constant over the entire period. Average annual
total returns smooth out variations in performance; they are not the same
as actual year-by-year results.
YIELD refers to the income generated by an investment in a fund over a
given period of time, expressed as an annual percentage rate. When a money
market fund's yield assumes that income earned is reinvested, it is called
an EFFECTIVE YIELD. A TAX-EQUIVALENT YIELD shows what an investor would
have to earn before taxes to equal a tax-free yield. Yields for the bond
funds are calculated according to a standard that is required for all stock
and bond funds. Because this differs from other accounting methods, the
quoted yield may not equal the income actually paid to shareholders.
CALIFORNIA TAX-FREE MONEY MARKET
7-day yields
Percentage (%)
Row: 1, Col: 1, Value: 3.23
Row: 1, Col: 2, Value: 2.69
Row: 2, Col: 1, Value: 3.18
Row: 2, Col: 2, Value: 2.62
Row: 3, Col: 1, Value: 3.55
Row: 3, Col: 2, Value: 2.97
Row: 4, Col: 1, Value: 3.8
Row: 4, Col: 2, Value: 3.07
Row: 5, Col: 1, Value: 3.69
Row: 5, Col: 2, Value: 3.0
Row: 6, Col: 1, Value: 2.83
Row: 6, Col: 2, Value: 2.46
Row: 7, Col: 1, Value: 2.53
Row: 7, Col: 2, Value: 2.14
Row: 8, Col: 1, Value: 2.48
Row: 8, Col: 2, Value: 2.15
Row: 9, Col: 1, Value: 3.03
Row: 9, Col: 2, Value: 2.67
Row: 10, Col: 1, Value: 2.43
Row: 10, Col: 2, Value: 2.13
Row: 11, Col: 1, Value: 2.52
Row: 11, Col: 2, Value: 2.16
Row: 12, Col: 1, Value: 3.21
Row: 12, Col: 2, Value: 2.69
Row: 13, Col: 1, Value: 2.13
Row: 13, Col: 2, Value: 1.81
Row: 14, Col: 1, Value: 2.24
Row: 14, Col: 2, Value: 1.87
Row: 15, Col: 1, Value: 2.49
Row: 15, Col: 2, Value: 1.96
Row: 16, Col: 1, Value: 2.51
Row: 16, Col: 2, Value: 1.98
Row: 17, Col: 1, Value: 2.8
Row: 17, Col: 2, Value: 2.13
Row: 18, Col: 1, Value: 2.33
Row: 18, Col: 2, Value: 1.79
Row: 19, Col: 1, Value: 2.49
Row: 19, Col: 2, Value: 1.86
Row: 20, Col: 1, Value: 2.56
Row: 20, Col: 2, Value: 1.97
Row: 21, Col: 1, Value: 2.71
Row: 21, Col: 2, Value: 2.16
Row: 22, Col: 1, Value: 2.45
Row: 22, Col: 2, Value: 1.95
Row: 23, Col: 1, Value: 2.41
Row: 23, Col: 2, Value: 1.91
Row: 24, Col: 1, Value: 2.69
Row: 24, Col: 2, Value: 2.13
Row: 25, Col: 1, Value: 2.22
Row: 25, Col: 2, Value: 1.71
Row: 26, Col: 1, Value: 2.47
Row: 26, Col: 2, Value: 1.93
California
Tax-Free
Money Market
Competitive
funds average
1993
1992
1994
CALIFORNIA TAX-FREE INSURED
30-day yields
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: nil
Row: 2, Col: 2, Value: nil
Row: 3, Col: 1, Value: nil
Row: 3, Col: 2, Value: nil
Row: 4, Col: 1, Value: nil
Row: 4, Col: 2, Value: nil
Row: 5, Col: 1, Value: nil
Row: 5, Col: 2, Value: nil
Row: 6, Col: 1, Value: nil
Row: 6, Col: 2, Value: nil
Row: 7, Col: 1, Value: nil
Row: 7, Col: 2, Value: nil
Row: 8, Col: 1, Value: nil
Row: 8, Col: 2, Value: nil
Row: 9, Col: 1, Value: nil
Row: 9, Col: 2, Value: nil
Row: 10, Col: 1, Value: nil
Row: 10, Col: 2, Value: nil
Row: 11, Col: 1, Value: nil
Row: 11, Col: 2, Value: nil
Row: 12, Col: 1, Value: nil
Row: 12, Col: 2, Value: nil
Row: 13, Col: 1, Value: 5.649999999999999
Row: 13, Col: 2, Value: 5.78
Row: 14, Col: 1, Value: 5.7
Row: 14, Col: 2, Value: 5.68
Row: 15, Col: 1, Value: 5.8
Row: 15, Col: 2, Value: 5.77
Row: 16, Col: 1, Value: 5.84
Row: 16, Col: 2, Value: 5.819999999999999
Row: 17, Col: 1, Value: 5.83
Row: 17, Col: 2, Value: 5.81
Row: 18, Col: 1, Value: 5.59
Row: 18, Col: 2, Value: 5.38
Row: 19, Col: 1, Value: 5.159999999999999
Row: 19, Col: 2, Value: 5.24
Row: 20, Col: 1, Value: 5.33
Row: 20, Col: 2, Value: 5.35
Row: 21, Col: 1, Value: 5.4
Row: 21, Col: 2, Value: 5.319999999999999
Row: 22, Col: 1, Value: 5.71
Row: 22, Col: 2, Value: 5.56
Row: 23, Col: 1, Value: 5.58
Row: 23, Col: 2, Value: 5.37
Row: 24, Col: 1, Value: 5.38
Row: 24, Col: 2, Value: 5.19
Row: 25, Col: 1, Value: 5.21
Row: 25, Col: 2, Value: 5.23
Row: 26, Col: 1, Value: 4.63
Row: 26, Col: 2, Value: 4.74
Row: 27, Col: 1, Value: 5.04
Row: 27, Col: 2, Value: 4.619999999999999
Row: 28, Col: 1, Value: 5.05
Row: 28, Col: 2, Value: 4.859999999999999
Row: 29, Col: 1, Value: 5.05
Row: 29, Col: 2, Value: 4.85
Row: 30, Col: 1, Value: 5.02
Row: 30, Col: 2, Value: 4.6
Row: 31, Col: 1, Value: 5.109999999999999
Row: 31, Col: 2, Value: 4.64
Row: 32, Col: 1, Value: 4.73
Row: 32, Col: 2, Value: 4.51
Row: 33, Col: 1, Value: 4.64
Row: 33, Col: 2, Value: 4.34
Row: 34, Col: 1, Value: 4.659999999999999
Row: 34, Col: 2, Value: 4.29
Row: 35, Col: 1, Value: 4.87
Row: 35, Col: 2, Value: 4.64
Row: 36, Col: 1, Value: 4.81
Row: 36, Col: 2, Value: 4.5
Row: 37, Col: 1, Value: 4.72
Row: 37, Col: 2, Value: 4.319999999999999
California
Tax-Free
Insured
Competitive
funds average
1993
1992
1994
CALIFORNIA TAX-FREE HIGH YIELD
30-day yields
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 1, Col: 2, Value: nil
Row: 2, Col: 1, Value: nil
Row: 2, Col: 2, Value: nil
Row: 3, Col: 1, Value: nil
Row: 3, Col: 2, Value: nil
Row: 4, Col: 1, Value: nil
Row: 4, Col: 2, Value: nil
Row: 5, Col: 1, Value: nil
Row: 5, Col: 2, Value: nil
Row: 6, Col: 1, Value: nil
Row: 6, Col: 2, Value: nil
Row: 7, Col: 1, Value: nil
Row: 7, Col: 2, Value: nil
Row: 8, Col: 1, Value: nil
Row: 8, Col: 2, Value: nil
Row: 9, Col: 1, Value: nil
Row: 9, Col: 2, Value: nil
Row: 10, Col: 1, Value: nil
Row: 10, Col: 2, Value: nil
Row: 11, Col: 1, Value: nil
Row: 11, Col: 2, Value: nil
Row: 12, Col: 1, Value: nil
Row: 12, Col: 2, Value: nil
Row: 13, Col: 1, Value: 5.38
Row: 13, Col: 2, Value: 5.83
Row: 14, Col: 1, Value: 5.55
Row: 14, Col: 2, Value: 5.79
Row: 15, Col: 1, Value: 5.609999999999999
Row: 15, Col: 2, Value: 5.88
Row: 16, Col: 1, Value: 5.54
Row: 16, Col: 2, Value: 5.859999999999999
Row: 17, Col: 1, Value: 5.55
Row: 17, Col: 2, Value: 5.79
Row: 18, Col: 1, Value: 5.430000000000001
Row: 18, Col: 2, Value: 5.67
Row: 19, Col: 1, Value: 4.99
Row: 19, Col: 2, Value: 5.39
Row: 20, Col: 1, Value: 5.1
Row: 20, Col: 2, Value: 5.35
Row: 21, Col: 1, Value: 5.109999999999999
Row: 21, Col: 2, Value: 5.430000000000001
Row: 22, Col: 1, Value: 5.42
Row: 22, Col: 2, Value: 5.68
Row: 23, Col: 1, Value: 5.28
Row: 23, Col: 2, Value: 5.58
Row: 24, Col: 1, Value: 5.2
Row: 24, Col: 2, Value: 5.49
Row: 25, Col: 1, Value: 5.149999999999999
Row: 25, Col: 2, Value: 5.39
Row: 26, Col: 1, Value: 4.76
Row: 26, Col: 2, Value: 5.14
Row: 27, Col: 1, Value: 4.77
Row: 27, Col: 2, Value: 4.99
Row: 28, Col: 1, Value: 4.81
Row: 28, Col: 2, Value: 4.99
Row: 29, Col: 1, Value: 4.859999999999999
Row: 29, Col: 2, Value: 4.96
Row: 30, Col: 1, Value: 4.84
Row: 30, Col: 2, Value: 4.91
Row: 31, Col: 1, Value: 5.0
Row: 31, Col: 2, Value: 4.9
Row: 32, Col: 1, Value: 4.930000000000001
Row: 32, Col: 2, Value: 4.78
Row: 33, Col: 1, Value: 4.75
Row: 33, Col: 2, Value: 4.59
Row: 34, Col: 1, Value: 4.75
Row: 34, Col: 2, Value: 4.52
Row: 35, Col: 1, Value: 4.96
Row: 35, Col: 2, Value: 4.659999999999999
Row: 36, Col: 1, Value: 4.88
Row: 36, Col: 2, Value: 4.63
Row: 37, Col: 1, Value: 4.8
Row: 37, Col: 2, Value: 4.5
California
Tax-Free
High Yield
Competitive
funds average
1993
1992
1994
THE TOP CHART SHOWS THE 7-DAY EFFECTIVE YIELDS FOR THE FUND AND ITS
COMPETITIVE FUNDS AVERAGE AS OF THE LAST TUESDAY OF EACH MONTH FROM
JANUARY 1992 THROUGH FEBRUARY 1994. THE BOTTOM CHARTS SHOW THE
30-DAY ANNUALIZED NET YIELDS FOR THE FUNDS AND THEIR COMPETITIVE FUNDS
AVERAGE AS OF THE LAST DAY OF EACH MONTH DURING THE SAME PERIOD. YIELDS
FOR CALIFORNIA TAX-FREE INSURED WOULD HAVE BEEN LOWER IF FIDELITY HAD NOT
REIMBURSED CERTAIN FUND EXPENSES.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. government.
THE COMPETITIVE FUNDS AVERAGES for California Tax-Free Money Market are
calculated based on the IBC Donoghue's Money Fund Averages(trademark)/All
Tax-Free /State Specifc category, which currently reflects the performance
of over 140 mutual funds with similar objectives. These averages are
published in the MONEY FUND REPORT(Registered trademark) by IBC USA
(Publications), Inc. The competitive funds averages for the bond funds are
published by Lipper Analytical Services, Inc. California Tax-Free Insured
and California Tax-Free High Yield compare their performance to the Lipper
California Insured Funds category and the Lipper California Municipal Funds
category, respectively, which currently reflects the performance of over 15
and 70 mutual funds with similar objectives, respectively. All of these
averages assume reinvestment of distributions.
The funds' recent strategies, performance, and holdings are detailed twice
a year in financial reports, which are sent to all shareholders. For
current performance or a free annual report, call 1-800-544-8888.
TOTAL RETURNS AND YIELDS ARE BASED ON PAST RESULTS AND ARE NOT AN
INDICATION OF FUTURE PERFORMANCE.
THE FUNDS IN DETAIL
CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money
and invests it toward a specified goal. In technical terms, California
Tax-Free Money Market is currently a non-diversified fund of Fidelity
California Municipal Trust II, and California Tax-Free Insured and
California Tax-Free High Yield are currently non-diversified funds of
Fidelity California Municipal Trust. Both trusts are open-end management
investment companies. Fidelity California Municipal Trust II was organized
as a Delaware business trust on June 20, 1991. Fidelity California
Municipal Trust was organized as a Massachusetts business trust on April
28, 1983. There is a remote possibility that one fund might become liable
for a misstatement in the prospectus about another fund.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES, which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet throughout the year to oversee the funds' activities,
review contractual arrangements with companies that provide services to the
funds, and review performance. The majority of trustees are not otherwise
affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
Fidelity will mail proxy materials in advance, including a voting card and
information about the proposals to be voted on. For the money market fund,
you are entitled to one vote for each share you own. For the bond funds,
the number of votes you are entitled to is based upon the dollar value of
your investment.
FMR AND ITS AFFILIATES
FIDELITY FACTS
Fidelity offers the broadest
selection of mutual funds
in the world.
(bullet) Number of Fidelity mutual
funds: over 200
(bullet) Assets in Fidelity mutual
funds: over $225 billion
(bullet) Number of shareholder
accounts: over 15 million
(bullet) Number of investment
analysts and portfolio
managers: over 200
(checkmark)
The funds are managed by FMR, which chooses their investments and handles
their business affairs. FTX has primary responsibility for providing
investment management services for California Tax-Free Money Market.
John (Jack) Haley Jr. is vice president and manager of California Tax-Free
Insured and California Tax-Free High Yield, which he has managed since 1986
and 1985, respectively. Mr. Haley also manages Advisor Limited Term
Tax-Exempt and Spartan California Municipal High Yield. He joined Fidelity
in 1981.
Fidelity Distributors Corporation(FDC) distributes and markets Fidelity's
funds and services. Fidelity Service Co. (FSC) performs transfer agent
servicing functions for the funds.
FMR Corp. is the parent company of these organizations. Through ownership
of voting common stock, Edward C. Johnson 3d (President and a trustee of
the trusts), Johnson family members, and various trusts for the benefit of
the Johnson family form a controlling group with respect to FMR Corp.
United Missouri Bank, N.A., is each fund's transfer agent, although it
employs FSC to perform these functions for the funds. It is located at 1010
Grand Avenue, Kansas City, Missouri.
To carry out the funds' transactions, FMR may use its broker-dealer
affiliates and other firms that sell fund shares, provided that a fund
receives services and commission rates comparable to those of other
broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
CALIFORNIA TAX-FREE MONEY MARKET seeks high current income that is free
from federal income tax and California personal income tax while
maintaining a stable $1.00 share price by investing in high-quality,
short-term municipal securities of all types. As a result, when you sell
your shares, they should be worth the same amount as when you bought them.
Of course, there is no guarantee that the fund will maintain a stable $1.00
share price. FMR normally invests at least 65% of the fund's total assets
in state tax-free securities, and normally invests so that at least 80% of
the fund's income distributions are free from federal income tax.
The fund follows industry-standard guidelines on the quality and maturity
of its investments, which are designed to help maintain a stable $1.00
share price. The fund will purchase only high-quality securities that FMR
believes present minimal credit risks and will observe maturity
restrictions on securities it buys. It is possible that a major change in
interest rates or a default on the fund's investments could cause its share
price (and the value of your investment) to change.
CALIFORNIA TAX-FREE INSURED seeks high current income that is free from
federal income tax and California personal income tax by investing
primarily in municipal securities that are covered by insurance
guaranteeing the timely payment of interest and principal. It is important
to note, however, that the insurance does not guarantee the market value of
a security or of the fund's shares. The insurance coverage is either
obtained by the bond's issuer or underwriter, or purchased by the fund. FMR
reviews the credit of insurance companies. The fund pays premiums for the
insurance either directly or indirectly, which increases the credit safety
of the fund's investments, but decreases its yield.
The insurance feature provides high credit quality to the fund's portfolio,
but the fund may also invest in some uninsured securities that are judged
by FMR to be of investment-grade quality. The fund normally invests in
long-term bonds, generally maintaining a dollar-weighted average maturity
of at least 20 years, although it may invest in obligations of any
maturity. FMR normally invests so that at least 80% of the fund's income
distributions are free from federal and California personal income taxes.
CALIFORNIA TAX-FREE HIGH YIELD seeks high current income that is free from
federal income tax and California personal income tax by investing
primarily in municipal securities judged by FMR to be of investment-grade
quality, although it can also invest in lower-quality securities. The fund
normally invests in long-term bonds, generally maintaining a
dollar-weighted average maturity of at least 15 years, although it may
invest in obligations of any maturity. FMR normally invests so that at
least 80% of the fund's income distributions are free from federal and
California personal income taxes.
EACH FUND'S yield and each bond fund's share price change daily based on
changes in interest rates, market conditions, other political and economic
news, and on the quality and maturity of its investments. In general, bond
prices rise when interest rates fall, and vice versa. This effect is
usually more pronounced for longer-term securities. Lower-quality
securities offer higher yields, but also carry more risk.
Each fund's performance is closely tied to the economic and political
conditions within the state of California, which has been in a recession
since 1990. As a result, tax revenues have decreased and the state has
accumulated a significant budget deficit despite cost cutting initiatives.
Economic conditions within the state are expected to remain stagnant
throughout 1994.
If you are subject to the federal alternative minimum tax, you should note
that each fund may invest a portion of its assets in municipal securities
issued to finance private activities. The interest from these investments
is a tax-preference item for purposes of the tax.
FMR normally invests each fund's assets according to its investment
strategy. The funds do not expect to invest in federally taxable
obligations, and the bond funds also do not expect to invest in state
taxable obligations. When FMR considers it appropriate for defensive
purposes, however, it temporarily may invest substantially in short-term
instruments, may hold a substantial amount of uninvested cash, or may
invest more than normally permitted in taxable obligations.
SECURITIES AND
INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, and strategies FMR may employ in
pursuit of a fund's investment objective. A summary of risks and
restrictions associated with these instrument types and investment
practices is included as well. Policies and limitations are considered at
the time of purchase; the sale of instruments is not required in the event
of a subsequent change in circumstances.
FMR may not buy all of these instruments or use all of these techniques to
the full extent permitted unless it believes that doing so will help the
funds achieve their goals. As a shareholder, you will receive financial
reports every six months detailing fund holdings and describing recent
investment activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. Debt
securities have varying degrees of quality and varying levels of
sensitivity to changes in interest rates. Longer-term bonds are generally
more sensitive to interest rate changes than short-term bonds.
Lower-quality debt securities may have speculative characteristics, and
involve greater risk of default or price changes due to changes in the
issuer's creditworthiness. The market prices of these securities may
fluctuate more than higher-quality securities and may decline significantly
in periods of general or regional economic difficulty.
The table on page 16 provides a summary of ratings assigned to debt
holdings (not including money market instruments) in California Tax-Free
High Yield's portfolio. These figures are dollar-weighted averages of
month-end portfolio holdings during fiscal 1994, and are presented as a
percentage of total investments. These percentages are historical and do
not necessarily indicate the fund's current or future debt holdings.
CALIFORNIA TAX-FREE HIGH YIELD
Fiscal 1994 Debt Holdings, by Rating MOODY'S STANDARD &
POOR'S
INVESTORS SERVICE, INC. CORPORATION
Rating Average A Rating Averag
eA
INVESTMENT GRADE
Highest quality Aaa AAA
High quality Aa 61.7% AA 73.1%
Upper-medium grade A A
Medium grade Baa 5.2% BBB 7.1%
LOWER QUALITY
Moderately speculative Ba 0.0% BB 0.0%
Speculative B 0.0% B 0.0%
Highly speculative Caa 0.0% CCC 0.0%
Poor quality Ca 0.0% CC 0.0%
Lowest quality, no interest C C
In default, in arrears -- D 0.0%
66.9% 80.2%
A THE DOLLAR-WEIGHTED AVERAGE OF DEBT SECURITIES NOT RATED BY MOODY'S OR
S&P AMOUNTED TO 11.2%. THIS MAY INCLUDE SECURITIES RATED BY OTHER
NATIONALLY RECOGNIZED RATING SERVICES, AS WELL AS UNRATED SECURITIES. FMR
HAS DETERMINED THAT UNRATED SECURITIES THAT ARE LOWER-QUALITY ACCOUNT FOR
3.6% OF THE FUND'S TOTAL INVESTMENTS. REFER TO THE FUND'S STATEMENT OF
ADDITIONAL INFORMATION FOR A MORE COMPLETE DISCUSSION OF THESE RATINGS.
RESTRICTIONS: California Tax-Free Insured does not currently intend to
invest more than 35% of its assets in uninsured securities, and does not
currently intend to invest in uninsured securities judged by FMR to be of
equivalent quality to those rated below Baa by Moody's or BBB by S&P.
California Tax-Free High Yield does not currently intend to invest more
than one-third of its assets in bonds judged by FMR to be of equivalent
quality to those rated Ba or lower by Moody's and BB or lower by S&P,
and does not currently intend to invest in bonds of equivalent quality to
bonds rated lower than B. The fund does not currently intend to invest in
bonds rated below Caa by Moody's or CCC by S&P.
MUNICIPAL SECURITIES are issued to raise money for a variety of public
purposes, including general financing for state and local governments, or
financing for specific projects or public facilities. Municipal securities
may be issued in anticipation of future revenues, and may be backed by the
full taxing power of a municipality, the revenues from a specific project,
or the credit of a private organization. A security's credit may be
enhanced by a bank, insurance company, or other financial institution. A
fund may own a municipal security directly or through a participation
interest.
STATE TAX-FREE SECURITIES include municipal obligations issued by the state
of California or its counties, municipalities, authorities, or other
subdivisions. The ability of issuers to repay their debt can be affected by
many factors that impact the economic vitality of either the state or a
region within the state.
Other state tax-free securities include general obligations of U.S.
territories and possessions such as Guam, the Virgin Islands, and Puerto
Rico, and their political subdivisions and public corporations. The economy
of Puerto Rico is closely linked to the U.S. economy, and will depend on
the strength of the U.S. dollar, interest rates, the price stability of oil
imports, and the continued existence of favorable tax incentives. Recent
legislation reduced these incentives, but it is impossible to predict what
impact the changes will have.
MUNICIPAL LEASE OBLIGATIONS are used by municipalities to acquire land,
equipment, or facilities. If the municipality stops making payments or
transfers its obligations to a private entity, the obligation could lose
value or become taxable.
PRIVATE ENTITIES may be involved in some municipal securities. For example,
industrial revenue bonds are backed by private entities, and resource
recovery bonds often involve private corporations. The viability of a
project or tax incentives could affect the value and credit quality of
these securities.
ASSET-BACKED SECURITIES may include pools of purchase contracts, financing
leases, or sales agreements entered into by municipalities. These
securities usually rely on continued payments by a municipality, and may
also be subject to prepayment risk.
VARIABLE- AND FLOATING-RATE INSTRUMENTS may have interest rates that move
in tandem with a benchmark, helping to stabilize their prices. Inverse
floaters have interest rates that move in the opposite direction from the
benchmark, making the instrument's market value more volatile.
PUT FEATURES entitle the holder to put (sell back) an instrument to the
issuer or a financial intermediary. In exchange for this benefit, a fund
may pay periodic fees or accept a lower interest rate. Demand features,
standby commitments, and tender options are types of put features.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices, interest
rates, or other factors that affect security values. These techniques may
involve derivative transactions such as buying and selling options and
futures contracts and purchasing indexed securities.
FMR can use these practices to adjust the risk and return characteristics
of a fund's portfolio of investments. If FMR judges market conditions
incorrectly or employs a strategy that does not correlate well with the
fund's investments, these techniques could result in a loss, regardless of
whether the intent was to reduce risk or increase return. These techniques
may increase the volatility of the fund and may involve a small investment
of cash relative to the magnitude of the risk assumed. In addition, these
techniques could result in a loss if the counterparty to the transaction
does not perform as promised.
WHEN-ISSUED AND DELAYED-DELIVERY TRANSACTIONS are trading practices in
which payment and delivery for the securities take place at a future date.
The market value of a security could change during this period, which could
affect a fund's yield or the market value of its assets.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by
FMR, under the supervision of the Board of Trustees, to be illiquid, which
means that they may be difficult to sell promptly at an acceptable price.
The sale of other securities, including illiquid securities, may be subject
to legal restrictions. Difficulty in selling securities may result in a
loss or may be costly to a fund.
RESTRICTIONS: A fund may not purchase a security if, as a result, more than
10% of its assets would be invested in illiquid securities.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the
risks of investing. This may include limiting the amount of money invested
in any one issuer or, on a broader scale, in any one industry or type of
project. Economic, business, or political changes can affect all securities
of a similar type. A fund that is not diversified may be more sensitive to
these changes, and also to changes in the market value of a single issuer
or industry.
RESTRICTIONS: The funds are considered non-diversified. Generally, to meet
federal tax requirements at the close of each quarter, a fund does not
invest more than 25% of its total assets in any one issuer and, with
respect to 50% of total assets, does not invest more than 5% of its total
assets in any one issuer. These limitations do not apply to U.S. government
securities. A fund may invest more than 25% of its total assets in tax-free
securities that finance similar types of projects. California Tax-Free
Insured may invest more than 25% of its assets in bonds insured by the same
insurance company.
BORROWING. A fund may borrow from banks or from other funds advised by FMR,
or through reverse repurchase agreements. If a bond fund borrows money, its
share price may be subject to greater fluctuation until the borrowing is
paid off. If the fund makes additional investments while borrowings are
outstanding, this may be considered a form of leverage.
RESTRICTIONS: A fund may borrow only for temporary or emergency purposes,
but not in an amount exceeding 33% of its total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages are
fundamental, that is, subject to change only by shareholder approval. The
following paragraphs restate all those that are fundamental. All policies
stated throughout this prospectus, other than those identified in the
following paragraphs, can be changed without shareholder approval.
CALIFORNIA TAX-FREE MONEY MARKET seeks as high a level of current income,
exempt from federal and California state personal income tax, as is
consistent with the preservation of capital. The fund will normally invest
so that at least 80% of its income distributions are free from federal
income tax.
CALIFORNIA TAX-FREE INSURED seeks as high a level of current income, exempt
from federal and California state personal income tax, available from
investing primarily in municipal securities that are covered by insurance
guaranteeing the timely payment of principal and interest. FMR will invest
the fund's assets primarily in municipal bonds that are (1) insured under
an insurance policy obtained by the issuer or underwriter; or (2) insured
under an insurance policy purchased by the fund. Insurance will be
obtained from recognized insurers. The fund may invest in uninsured
municipal obligations judged to be of quality equivalent to the four
highest ratings assigned by Moody's and S&P (Baa, BBB, or better).
Under normal market conditions, such uninsured obligations may not exceed
35% of the fund's assets. The fund will normally invest so that at least
80% of its income distributions are exempt from federal and California
state personal income taxes. During periods when FMR believes that
California municipals that meet the fund's standards are not available, the
fund may temporarily invest more than 20% of its assets in obligations that
are only federally tax-exempt.
CALIFORNIA TAX-FREE HIGH YIELD seeks as high a level of current income,
exempt from federal and California state personal income tax, available
from investing primarily in municipal securities judged by FMR to be of
investment-grade quality. The fund may invest up to one-third of its
assets in lower-quality bonds, but may not purchase bonds that are judged
by FMR to be equivalent quality to those rated lower than B. The fund will
normally invest so that at least 80% of its income distributions are exempt
from federal and California state personal income taxes. During periods
when FMR believes that California municipals that meet the fund's standards
are not available, the fund may temporarily invest more than 20% of its
assets in obligations that are only federally tax-exempt.
EACH FUND may borrow only for temporary or emergency purposes, but not in
an amount exceeding 33% of its total assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of a fund's assets are reflected in its share
price or dividends; they are neither billed directly to shareholders nor
deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments and
business affairs. FMR in turn pays fees to an affiliate who provides
assistance with these services for California Tax-Free Money Market. Each
fund also pays OTHER EXPENSES, which are explained on page .
FMR may, from time to time, agree to reimburse the funds for management
fees and other expenses above a specified limit. FMR retains the ability to
be repaid by a fund if expenses fall below the specified limit prior to the
end of the fiscal year. Reimbursement arrangements, which may be terminated
at any time without notice, can decrease a fund's expenses and boost its
performance.
MANAGEMENT FEE
The management fee is calculated and paid to FMR every month. The fee is
calculated by adding a group fee rate to an individual fund fee rate, and
multiplying the result by the fund's average net assets.
The group fee rate is based on the average net assets of all the mutual
funds advised by FMR. This rate cannot rise above .37%, and it drops as
total assets under management increase.
For February 1994, the group fee rate was .1604%. Each fund's individual
fund fee rate is .25%. However, because of a reimbursement arrangement, the
total management fee rate for fiscal 1994 was .30% for California Tax-Free
Insured. The total management fee rate for fiscal 1994 was .41% for both
California Tax-Free Money Market and California Tax-Free High Yield.
FMR HAS A SUB-ADVISORY AGREEMENT with FTX, which has primary responsibility
for providing investment management for California Tax-Free Money Market,
while FMR retains responsibility for providing other management services.
FMR pays FTX 50% of its management fee (before expense reimbursements) for
these services.
OTHER EXPENSES
While the management fee is a significant component of the funds' annual
operating costs, the funds have other expenses as well.
FSC performs many transaction and accounting functions. These services
include processing shareholder transactions, valuing each fund's
investments, and handling securities loans. In fiscal 1994, FSC received
fees equal to .21%, .16%, and .14%, respectively, of California Tax-Free
Money Market's, California Tax-Free Insured 's, and California Tax-Free
High Yield's average net assets.
The funds also pay other expenses, such as legal, audit, and custodian
fees; proxy solicitation costs; and the compensation of trustees who are
not affiliated with Fidelity.
Each fund has adopted a Distribution and Service Plan. These plans
recognize that FMR may use its resources, including management fees, to pay
expenses associated with the sale of fund shares. This may include payments
to third parties, such as banks or broker-dealers, that provide shareholder
support services or engage in the sale of the fund's shares. It is
important to note, however, that the funds do not pay FMR any separate fees
for this service.
For fiscal 1994, the portfolio turnover rates for California Tax-Free
Insured and California Tax-Free High Yield were 60% and 44%, respectively.
These rates vary from year to year.
YOUR ACCOUNT
DOING BUSINESS
WITH FIDELITY
Fidelity Investments was established in 1946 to manage one of America's
first mutual funds. Today, Fidelity is the largest mutual fund company in
the country, and is known as an innovative provider of high-quality
financial services to individuals and institutions.
In addition to its mutual fund business, the company operates one of
America's leading discount brokerage firms, Fidelity Brokerage Services,
Inc. (FBSI). Fidelity is also a leader in providing tax-sheltered
retirement plans for individuals investing on their own or through their
employer.
Fidelity is committed to providing investors with practical information to
make investment decisions. Based in Boston, Fidelity provides customers
with complete service 24 hours a day, 365 days a year, through a network of
telephone service centers around the country.
To reach Fidelity for general information, call these numbers:
(bullet) For mutual funds, 1-800-544-8888
(bullet) For brokerage, 1-800-544-7272
If you would prefer to speak with a representative in person, Fidelity has
over 75 walk-in Investor Centers across the country.
TYPES OF ACCOUNTS
You may set up an account directly in a fund or, if you own or intend to
purchase individual securities as part of your total investment portfolio,
you may consider investing in a fund through a brokerage account. You can
choose California Tax-Free Money Market as your core account for your
Fidelity Ultra Service Account(Registered trademark) or FidelityPlusSM
brokerage account.
If you are investing through FBSI or another financial institution or
investment professional, refer to its program materials for any special
provisions regarding your investment in the fund.
The different ways to set up (register) your account with Fidelity are
listed below.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have two or
more owners (tenants).
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and obtain
tax benefits. An individual can give up to $10,000 a year per child without
paying federal gift tax. Depending on state laws, you can set up a
custodial account under the Uniform Gifts to Minors Act (UGMA) or the
Uniform Transfers to Minors Act (UTMA).
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR OTHER
GROUPS
Requires a special application.
HOW TO BUY SHARES
EACH FUND'S SHARE PRICE, called net asset value (NAV), is calculated every
business day. California Tax-Free Money Market is managed to keep its share
price stable at $1.00. Each fund's shares are sold without a sales charge.
Shares are purchased at the next share price calculated after your
investment is received and accepted. Share price is normally calculated at
4 p.m. Eastern time.
IF YOU ARE NEW TO FIDELITY, complete and sign an account application and
mail it along with your check. You may also open your account in person or
by wire as described on page . If there is no application accompanying this
prospectus, call 1-800-544-8888.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY FUND, you can:
(bullet) Mail in an application with a check, or
(bullet) Open your account by exchanging from another Fidelity fund.
If you buy shares by check or Fidelity Money Line(Registered trademark),
and then sell those shares by any method other than by exchange to another
Fidelity fund, the payment may be delayed for up to seven business days to
ensure that your previous investment has cleared.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For California Tax-Free Money $5,000
TO ADD TO AN ACCOUNT $250
Through automatic investment plans $100
MINIMUM BALANCE $1,000
<TABLE>
<CAPTION>
<S> <C> <C>
TO OPEN AN ACCOUNT TO ADD TO AN ACCOUNT
Phone 1-800-544-777 (phone_graphic) (bullet) Exchange from another (bullet) Exchange from another
Fidelity fund account Fidelity fund account
with the same with the same
registration, including registration, including
name, address, and name, address, and
taxpayer ID number. taxpayer ID number.
(bullet) Use Fidelity Money
Line to transfer from
your bank account. Call
before your first use to
verify that this service
is in place on your
account. Maximum
Money Line: $50,000.
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Mail (mail_graphic) (bullet) Complete and sign the (bullet) Make your check
application. Make your payable to the complete
check payable to the name of the fund.
complete name of the Indicate your fund
fund of your choice. account number on
Mail to the address your check and mail to
indicated on the the address printed on
application. your account statement.
(bullet) Exchange by mail: call
1-800-544-6666 for
instructions.
</TABLE>
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In Person (hand_graphic) (bullet) Bring your application (bullet) Bring your check to a
and check to a Fidelity Fidelity Investor Center.
Investor Center. Call Call 1-800-544-9797 for
1-800-544-9797 for the the center nearest you.
center nearest you.
</TABLE>
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Wire (wire_graphic) (bullet) Call 1-800-544-7777 to (bullet) Wire to:
set up your account Bankers Trust
and to arrange a wire Company,
transaction. Bank Routing
(bullet) Wire within 24 hours to: #021001033,
Bankers Trust Account #00163053.
Company, Specify the complete
Bank Routing name of the fund and
#021001033, include your account
Account #00163053. number and your
Specify the complete name.
name of the fund and
include your new
account number and
your name.
</TABLE>
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Automatically (automatic_graphic) (bullet) Not available. (bullet) Use Fidelity Automatic
Account Builder. Sign
up for this service
when opening your
account, or call
1-800-544-6666 to add
it.
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(tdd_graphic) TDD - Service for the Deaf and Hearing Impaired: 1-800-544-0118
</TABLE>
HOW TO SELL SHARES
You can arrange to take money out of your fund account at any time by
selling (redeeming) some or all of your shares. Your shares will be sold at
the next share price calculated after your order is received and accepted.
Share price is normally calculated at 4 p.m. Eastern time.
TO SELL SHARES THROUGH YOUR FIDELITY ULTRA SERVICE OR FIDELITY PLUS
ACCOUNT, call 1-800-544-6262 to receive a handbook with instructions.
IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least $1,000
worth of shares in the account to keep it open.
TO SELL SHARES BY BANK WIRE OR FIDELITY MONEY LINE, you will need to sign
up for these services in advance.
CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to
protect you and Fidelity from fraud. Your request must be made in writing
and include a signature guarantee if any of the following situations apply:
(bullet) You wish to redeem more than $100,000 worth of shares,
(bullet) Your account registration has changed within the last 30 days,
(bullet) The check is being mailed to a different address than the one on
your account (record address),
(bullet) The check is being made payable to someone other than the account
owner, or
(bullet) The redemption proceeds are being transferred to a Fidelity
account with a different registration.
You should be able to obtain a signature guarantee from a bank, broker
(including Fidelity Investor Centers), dealer, credit union (if authorized
under state law), securities exchange or association, clearing agency, or
savings association. A notary public cannot provide a signature guarantee.
SELLING SHARES IN WRITING
Write a "letter of instruction" with:
(bullet) Your name,
(bullet) The fund's name,
(bullet) Your fund account number,
(bullet) The dollar amount or number of shares to be redeemed, and
(bullet) Any other applicable requirements listed in the table at right.
Unless otherwise instructed, Fidelity will send a check to the record
address. Deliver your letter to a Fidelity Investor Center, or mail it to:
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
CHECKWRITING
If you have a checkbook for your account, you may write an unlimited number
of checks. Do not, however, try to close out your account by check.
ACCOUNT TYPE SPECIAL REQUIREMENTS
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Phone 1-800-544-777 (phone_graphic) All account types (bullet) Maximum check request:
$100,000.
(bullet) For Money Line transfers to
your bank account; minimum:
$10; maximum: $100,000.
(bullet) You may exchange to other
Fidelity funds if both
accounts are registered with
the same name(s), address,
and taxpayer ID number.
Mail or in Person (mail_graphic)(hand_graphic) Individual, Joint (bullet) The letter of instruction must
Tenant, be signed by all persons
Sole Proprietorship required to sign for
, UGMA, UTMA transactions, exactly as their
Trust names appear on the
account.
(bullet) The trustee must sign the
letter indicating capacity as
Business or trustee. If the trustee's name
Organization is not in the account
registration, provide a copy of
the trust document certified
within the last 60 days.
(bullet) At least one person
Executor, authorized by corporate
Administrator, resolution to act on the
Conservator, account must sign the letter.
Guardian (bullet) Include a corporate
resolution with corporate seal
or a signature guarantee.
(bullet) Call 1-800-544-6666 for
instructions.
Wire (wire_graphic) All account types (bullet) You must sign up for the wire
feature before using it. To
verify that it is in place, call
1-800-544-6666. Minimum
wire: $5,000.
(bullet) Your wire redemption request
must be received by Fidelity
before 4 p.m. Eastern time
for money to be wired on the
next business day.
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Check (check_graphic) All account types (bullet) Minimum check: $500.
(bullet) All account owners must sign
a signature card to receive a
checkbook.
</TABLE>
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(tdd_graphic) TDD - Service for the Deaf and Hearing Impaired: 1-800-544-0118
</TABLE>
INVESTOR SERVICES
Fidelity provides a variety of services to help you manage your account.
INFORMATION SERVICES
FIDELITY'S TELEPHONE REPRESENTATIVES are available 24 hours a day, 365 days
a year. Whenever you call, you can speak with someone equipped to provide
the information or service you need.
24-HOUR SERVICE
ACCOUNT ASSISTANCE
1-800-544-6666
ACCOUNT BALANCES
1-800-544-7544
ACCOUNT TRANSACTIONS
1-800-544-7777
PRODUCT INFORMATION
1-800-544-8888
QUOTES
1-800-544-8544
RETIREMENT ACCOUNT
ASSISTANCE
1-800-544-4774
AUTOMATED SERVICE
(checkmark)
STATEMENTS AND REPORTS that Fidelity sends to you include the following:
(bullet) Confirmation statements (after every transaction, except
reinvestments, that affects your account balance or your account
registration)
(bullet) Account statements (quarterly)
(bullet) Financial reports (every six months)
To reduce expenses, only one copy of most financial reports will be mailed
to your household, even if you have more than one account in the fund. Call
1-800-544-6666 if you need copies of financial reports or historical
account information.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your fund shares and buy shares of other
Fidelity funds by telephone or in writing.
Note that exchanges out of a fund are limited to four per calendar year
(except for California Tax-Free Money Market), and that they may have tax
consequences for you. For details on policies and restrictions governing
exchanges, including circumstances under which a shareholder's exchange
privilege may be suspended or revoked, see page .
SYSTEMATIC WITHDRAWAL PLANS let you set up periodic redemptions from your
account.
FIDELITY MONEY LINE(Registered trademark) enables you to transfer money by
phone between your bank account and your fund account. Most transfers are
complete within three business days of your call.
REGULAR INVESTMENT PLANS
One easy way to pursue your financial goals is to invest money regularly.
Fidelity offers convenient services that let you transfer money into your
fund account, or between fund accounts, automatically. While regular
investment plans do not guarantee a profit and will not protect you against
loss in a declining market, they can be an excellent way to invest for a
home, educational expenses, and other long-term financial goals.
REGULAR INVESTMENT PLANS
FIDELITY AUTOMATIC ACCOUNT BUILDERSM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND
MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly or (bullet) For a new account, complete the
quarterly appropriate section on the fund
application.
(bullet) For existing accounts, call
1-800-544-6666 for an application.
(bullet) To change the amount or frequency of
your investment, call 1-800-544-6666 at
least three business days prior to your
next scheduled investment date.
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DIRECT DEPOSIT
TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY FUNDA
</TABLE>
MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Every pay (bullet) Check the appropriate box on the fund
period application, or call 1-800-544-6666 for an
authorization form.
(bullet) Changes require a new authorization
form.
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FIDELITY AUTOMATIC EXCHANGE SERVICE
TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND
</TABLE>
<TABLE>
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MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly, (bullet) To establish, call 1-800-544-6666 after
bimonthly, both accounts are opened.
quarterly, or (bullet) To change the amount or frequency of
annually your investment, call 1-800-544-6666.
</TABLE>
A BECAUSE BOND FUND SHARE PRICES FLUCTUATE, THOSE FUNDS MAY NOT BE
APPROPRIATE CHOICES FOR DIRECT DEPOSIT OF YOUR ENTIRE CHECK.
SHAREHOLDER AND ACCOUNT POLICIES
DIVIDENDS, CAPITAL GAINS, AND TAXES
Each fund distributes substantially all of its net investment income and
capital gains. if any, to shareholders each year. Income dividends are
declared daily and paid monthly. Capital gains earned by the bond funds are
normally distributed in April and December.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. If the option you prefer is not listed on the
application, call 1-800-544-6666 for instructions. Each fund offers four
options (three for California Tax-Free Money Market):
1. REINVESTMENT OPTION. Your dividend and capital gain distributions, if
any, will be automatically reinvested in additional shares of the fund. If
you do not indicate a choice on your application, you will be assigned this
option.
2. INCOME-EARNED OPTION. Your capital gain distributions, if any, will be
automatically reinvested, but you will be sent a check for each dividend
distribution. This option is not available for California Tax-Free Money
Market.
3. CASH OPTION. You will be sent a check for your dividend and capital gain
distributions, if any.
4. DIRECTED DIVIDENDS(Registered trademark) OPTION. Your dividend and
capital gain distributions, if any, will be automatically invested in
another identically registered Fidelity fund.
Dividends will be reinvested at the fund's NAV on the last day of the
month. Capital gain distributions, if any, will be reinvested at the NAV as
of the date the fund deducts the distribution from its NAV. The mailing of
distribution checks will begin within seven days.
UNDERSTANDING
DISTRIBUTIONS
As a fund shareholder, you
are entitled to your share of
the fund's net income and
gains on its investments. The
fund passes its earnings
along to its investors as
DISTRIBUTIONS.
Each fund earns interest from
its investments. These are
passed along as DIVIDEND
DISTRIBUTIONS. The fund may
realize capital gains if it sells
securities for a higher price
than it paid for them. These
are passed along as CAPITAL
GAIN DISTRIBUTIONS. Money
market funds usually don't
make capital gain
distributions.
(checkmark)
TAXES
As with any investment, you should consider how an investment in a tax-free
fund could affect you. Below are some of the funds' tax implications.
TAXES ON DISTRIBUTIONS. Interest income that a fund earns is distributed to
shareholders as income dividends. Interest that is federally tax-free
remains tax-free when it is distributed.
However, gain on the sale of tax-free bonds results in taxable
distributions. Short-term capital gains and a portion of the gain on bonds
purchased at a discount are taxed as dividends. Long-term capital gain
distributions are taxed as long-term capital gains. These distributions are
taxable when they are paid, whether you take them in cash or reinvest them.
However, distributions declared in December and paid in January are taxable
as if they were paid on December 31. Fidelity will send you and the IRS a
statement showing the tax status of the distributions paid to you in the
previous year.
The interest from some municipal securities is subject to the federal
alternative minimum tax. A fund may invest so that up to 20% of its income
is derived from these securities. Individuals who are subject to
the tax must report this interest on their tax returns.
To the extent a fund's income dividends are derived from interest on state
tax-free investments, they will be free from California state personal
income tax.
During fiscal 1994, 100% of each fund's income dividends was free from
federal income tax and California state personal income taxes. 18.3% of
California Tax-Free Money Market's income dividends and 0% of both
California Tax-Free Insured's and California Tax-Free High Yield's income
dividends were subject to the federal alternative minimum tax.
TAXES ON TRANSACTIONS. Your bond fund redemptions - including exchanges to
other Fidelity funds - are subject to capital gains tax. A capital gain or
loss is the difference between the cost of your shares and the price you
receive when you sell them.
Whenever you sell shares of a fund, Fidelity will send you a confirmation
statement showing how many shares you sold and at what price. You will also
receive a consolidated transaction statement every January. However, it is
up to you or your tax preparer to determine whether this sale resulted in a
capital gain and, if so, the amount of tax to be paid. Be sure to keep your
regular account statements; the information they contain will be essential
in calculating the amount of your capital gains.
"BUYING A DIVIDEND." If you buy shares just before a fund deducts a capital
gain distribution from its NAV, you will pay the full price for the shares
and then receive a portion of the price back in the form of a taxable
distribution.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE)
is open. Fidelity normally calculates each fund's NAV as of the close of
business of the NYSE, normally 4 p.m. Eastern time.
EACH FUND'S NAV is the value of a single share. The NAV is computed by
adding the value of the fund's investments, cash, and other assets,
subtracting its liabilities, and then dividing the result by the number of
shares outstanding.
The money market fund values the securities it owns on the basis of
amortized cost. This method minimizes the effect of changes in a security's
market value and helps the fund to maintain a stable $1.00 share price. For
the bond funds, assets are valued primarily on the basis of market
quotations, if available. Since market quotations are often unavailable,
assets are usually valued by a method that the Board of Trustees believes
accurately reflects fair value.
EACH FUND'S OFFERING PRICE (price to buy one share) and REDEMPTION PRICE
(price to sell one share) are its NAV.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that
your Social Security or taxpayer identification number is correct and that
you are not subject to 31% backup withholding for failing to report income
to the IRS. If you violate IRS regulations, the IRS can require a fund to
withhold 31% of your taxable distributions and redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Note that Fidelity will
not be responsible for any losses resulting from unauthorized transactions
if it follows reasonable procedures designed to verify the identity of the
caller. Fidelity will request personalized security codes or other
information, and may also record calls. You should verify the accuracy of
your confirmation statements immediately after you receive them. If you do
not want the ability to redeem and exchange by telephone, call Fidelity for
instructions.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods
of unusual market activity), consider placing your order by mail or by
visiting a Fidelity Investor Center.
EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period
of time. Each fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they would
disrupt management of a fund.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your order will be processed at the
next offering price calculated after your order is received and accepted.
Note the following:
(bullet) All of your purchases must be made in U.S. dollars and checks
must be drawn on U.S. banks.
(bullet) Fidelity does not accept cash.
(bullet) When making a purchase with more than one check, each check must
have a value of at least $50.
(bullet) Each fund reserves the right to limit the number of checks
processed at one time.
(bullet) If your check does not clear, your purchase will be cancelled and
you could be liable for any losses or fees a fund or its transfer agent has
incurred.
(bullet) You begin to earn dividends as of the first business day
following the day of your purchase.
TO AVOID THE COLLECTION PERIOD associated with check and Money Line
purchases, consider buying shares by bank wire, U.S. Postal money order,
U.S. Treasury check, Federal Reserve check, or direct deposit instead.
YOU MAY BUY OR SELL SHARES OF THE FUNDS THROUGH A BROKER, who may charge
you a fee for this service. If you invest through a broker or other
institution, read its program materials for any additional service features
or fees that may apply.
CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with
FDC may enter confirmed purchase orders on behalf of customers by phone,
with payment to follow no later than the time when a fund is priced on the
following business day. If payment is not received by that time, the
financial institution could be held liable for resulting fees or losses.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the
next NAV calculated after your request is received and accepted. Note the
following:
(bullet) Normally, redemption proceeds will be mailed to you on the next
business day, but if making immediate payment could adversely affect a
fund, it may take up to seven days to pay you.
(bullet) Shares will earn dividends through the date of redemption;
however, shares redeemed on a Friday or prior to a holiday will continue to
earn dividends until the next business day.
(bullet) Fidelity Money Line redemptions generally will be credited to
your bank account on the second or third business day after your phone
call.
(bullet) Each fund may hold payment on redemptions until it is reasonably
satisfied that investments made by check or Fidelity Money Line have been
collected, which can take up to seven business days.
(bullet) Redemptions may be suspended or payment dates postponed when the
NYSE is closed (other than weekends or holidays), when trading on the NYSE
is restricted, or as permitted by the SEC.
(bullet) If you sell shares by writing a check and the amount of the check
is greater than the value of your account, your check will be returned to
you and you may be subject to additional charges.
IF YOUR ACCOUNT BALANCE FALLS BELOW $1,000, you will be given 30 days'
notice to reestablish the minimum balance. If you do not increase your
balance, Fidelity reserves the right to close your account and send the
proceeds to you. Your shares will be redeemed at the NAV on the day your
account is closed.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC may, at its own expense, provide promotional incentives to qualified
recipients who support the sale of shares of the funds without
reimbursement from the funds. Qualified recipients are securities dealers
who have sold fund shares or others, including banks and other financial
institutions, under special arrangements in connection with FDC's sales
activities. In some instances, these incentives may be offered only to
certain institutions whose representatives provide services in connection
with the sale or expected sale of significant amounts of shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging shares of a fund for
shares of other Fidelity funds. However, you should note the following:
(bullet) The fund you are exchanging into must be registered for sale in
your state.
(bullet) You may only exchange between accounts that are registered in the
same name, address, and taxpayer identification number.
(bullet) Before exchanging into a fund, read its prospectus.
(bullet) If you exchange into a fund with a sales charge, you pay the
percentage-point difference between that fund's sales charge and any sales
charge you have previously paid in connection with the shares you are
exchanging. For example, if you had already paid a sales charge of 2% on
your shares and you exchange them into a fund with a 3% sales charge, you
would pay an additional 1% sales charge.
(bullet) Exchanges may have tax consequences for you.
(bullet) Because excessive trading can hurt fund performance and
shareholders, California Tax-Free Insured and California Tax-Free High
Yield reserve the right to temporarily or permanently terminate the
exchange privilege of any investor who makes more than four exchanges out
of the fund per calendar year. Accounts under common ownership or control,
including accounts with the same taxpayer identification number, will be
counted together for purposes of the four exchange limit.
(bullet) Each fund reserves the right to refuse exchange purchases by any
person or group if, in FMR's judgment, the fund would be unable to invest
the money effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
(bullet) Your exchanges may be restricted or refused if a fund receives or
anticipates simultaneous orders affecting significant portions of the
fund's assets. In particular, a pattern of exchanges that coincide with a
"market timing" strategy may be disruptive to a fund.
Although the funds will attempt to give you prior notice whenever they are
reasonably able to do so, they may impose these restrictions at any time.
The funds reserve the right to terminate or modify the exchange privilege
in the future.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
administrative fees of up to $7.50 and redemption fees of up to 1.50% on
exchanges. Check each fund's prospectus for details.
This prospectus is printed on recycled paper using soy-based inks.
