FIDELITY CALIFORNIA TAX-FREE FUNDS
SUPPLEMENT TO THE PROSPECTUS DATED APRIL 16, 1993
TO HELP YOU LEARN MORE ABOUT THE MANAGER OF FIDELITY'S CALIFORNIA HIGH
YIELD AND INSURED FUNDS, WE ARE PROVIDING THE FOLLOWING BACKGROUND
INFORMATION WHICH FOCUSES ON THE MANAGER'S EXPERIENCE DURING THE PAST FIVE
YEARS. THE FINANCIAL HIGHLIGHTS UPDATE THE FUNDS' FINANCIAL HISTORIES ON
PAGES 4-6 IN THE ATTACHED PROSPECTUS. PLEASE CALL US AT 1-800-544-8888 IF
YOU WOULD LIKE A COPY OF THE LATEST ANNUAL OR SEMIANNUAL REPORT FOR THESE
FUNDS.
FUND MANAGER BIOGRAPHY
JOHN (JACK) HALEY JR. has been portfolio manager and vice president of
Fidelity California Tax-Free High Yield Portfolio since 1985, Fidelity
California Tax-Free Insured Portfolio since 1986, and Spartan California
Municipal High Yield Portfolio since December 1989. Since 1985, he has also
managed Fidelity Advisor Limited Term Tax-Exempt Portfolio. He previously
managed Fidelity Limited Term Municipals.
TEMPORARY EXPENSE LIMITATION. Effective September 1, 1993, Fidelity
Management & Research Company (FMR), the funds' Manager, voluntarily
agreed to temporarily limit the total expenses of the insured fund
(excluding interest, taxes, brokerage commissions, and extraordinary
expenses) to an annual rate of ..55% of the fund's average net assets.
As long as this temporary expense limitation continues, it will lower
the insured fund's expenses and increase its yield. This expense limitation
may be terminated or revised at any time, at which time the insured fund's
expenses will go up and its yield will be reduced.
The following information replaces the corresponding sections for the
insured fund found under the heading "Summary of Fund Expenses" on page 2.
INSURED
FUND
B. ANNUAL FUND OPERATING EXPENSES
(as a percentage of average net assets)
Management Fee 0.34 %*
12b-1 Fee None
Other Expenses 0.21 %
TOTAL FUND OPERATING EXPENSES 0.55 %
* NET OF REIMBURSEMENT
C. EXAMPLES
You would pay the following expenses on a $1,000 investment in the insured
fund,
assuming (1) a 5% annual return and (2) full redemption at the end of each
time period:
One year $ 6
Three years $ 18
Five years $ 31
Ten years $ 69
B. ANNUAL FUND OPERATING EXPENSES are based on the funds'
historical expenses after reimbursement. Management fees are paid by each
fund to Fidelity Management & Research Company (FMR) for managing its
investments and business affairs. Each fund incurs other expenses for
maintaining shareholder records, furnishing shareholder statements and
reports, and for other services. Effective September 1, 1993, FMR has
voluntarily agreed to temporarily limit the total operating expenses of the
insured fund to ..55% of its average net assets . If this agreement were
not in effect, the insured fund's management fee, other expenses, and total
operating expenses would have been .42%, .21%, and .63%, respectively.
Management fees and other expenses are reflected in each fund's share price
or dividends and are not charged directly to individual accounts. Please
refer to the section entitled "Management, Distribution, and Service Fees"
on page 16 for further information.
MONEY MARKET FUND FINANCIAL HIGHLIGHTS
July 7, 1984
Ten Months (Commencement
Ended of Operations) to
February 28, Years Ended April 30, April 30,
1993 1992 1991 1990 1989 1988 1987
1986(dagger) 1985(dagger)
SELECTED PER-SHARE DATA
Net asset value, beginning of
period $ 1.000000 $ 1.000000 $ 1.000000 $ 1.000000 $ 1.000000 $ 1.000000
$ 1.000000 $ 1.000000 $ 1.000000
Net interest income .019046 .035312 .047464 .053933 .052308 .041872
.038124 .048426 .045873
Dividends from net interest
income (.019046) (.035312) (.047464) (.053933) (.052308) (.041872)
(.038124) (.048426) (.045873)
Net asset value, end of period $ 1.000000 $ 1.000000 $ 1.000000 $ 1.000000
$ 1.000000 $ 1.000000 $ 1.000000 $ 1.000000 $ 1.000000
TOTAL RETURN (double dagger) 2.31%* 3.59% 4.85% 5.53% 5.36% 4.27% 3.88%
4.95% 5.51%*
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period
(000 omitted) $ 568,280 $ 556,516 $ 538,791 $ 623,748 $ 735,623 $ 546,553
$ 413,498 $ 120,594 $ 21,915
Ratio of expenses to average net
assets .62%* .63% .61% .60% .53% .58% .60% .60% .30%*
Ratio of expenses to average net
assets before voluntary
expense limitation . .62%* .63% .61% .60% .65% .62% .67% .79% 1.50%*
Ratio of net interest income to
average net assets 2.29%* 3.50% 4.75% 5.42% 5.31% 4.17% 3.84% 4.92%
5.62%*
* ANNUALIZED
(dagger) ADJUSTED FOR A 10 FOR 1 SPLIT PAID ON FEBRUARY 1, 1986.
(double dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD THE ADVISER NOT
REIMBURSED CERTAIN EXPENSES DURING THE PERIODS SHOWN.
HIGH YIELD FUND FINANCIAL HIGHLIGHTS July 7, 1984
(Commencement of
Ten Months Ended Years Ended April 30, Operations) to
February 28, 1993 1992 1991 1990
1989 1988 1987 1986 April 30,
1985
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of
$ 11.540000 $ 11.300000 $ 10.940000 $ 11.080000 $ 10.620000 $ 10.950000 $ 11.510000 $ 10.430000 $ 10.000000
period
Income from Investment
Operations
Net interest income
.610568 .743821 .751892 .755701 .758101 .760150 .782454 .883901 .771438
Net realized and unrealized
.890000 .240000 .360000 (.140000) .460000 (.270000) (.510000) 1.080000 .430000
gain (loss) on investments
Total from investment
1.500568 .983821 1.111892 .615701 1.218101 .490150 .272454 1.963901 1.201438
operations
Less Distributions
From net interest income
(.610568) (.743821) (.751892) (.755701) (.758101) (.760150) (.782454) (.883901) (.771438)
From net realized gain on
- - - - - - (.060000) (.050000) - -
investments
Total distributions
(.610568) (.743821) (.751892) (.755701) (.758101) (.820150) (.832454) (.883901) (.771438)
Net asset value, end of
$ 12.430000 $ 11.540000 $ 11.300000 $ 10.940000 $ 11.080000 $ 10.620000 $ 10.950000 $ 11.510000 $ 10.430000
period
TOTAL RETURN (dagger)
16.09%* 8.94% 10.44% 5.61% 11.85% 4.72% 2.22% 19.70% 15.55%*
</TABLE>
RATIOS AND SUPPLEMENTAL DATA
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000
$ 586,791 $ 529,445 $ 523,590 $ 513,682 $ 493,977 $ 399,186 $ 460,635 $ 323,632 $ 30,235
omitted)
Ratio of expenses to average .60%* .59% .58% .60% .61% .73% .68% .72%
1.00%
net assets *
Ratio of expenses to average .60%* .59% .58% .60% .61% .73% .68% .72%
1.49%
net assets before voluntary *
expense limitation
Ratio of net interest income
6.17%* 6.52% 6.71% 6.73% 7.05% 7.15% 6.68% 7.75% 9.53%
to average net assets *
Portfolio turnover rate
32%* 23% 15% 34% 21% 52% 46% 16% 14%
*
</TABLE>
* ANNUALIZED
(dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD THE ADVISER NOT
REIMBURSED CERTAIN EXPENSES DURING THE PERIODS SHOWN.
INSURED FUND FINANCIAL HIGHLIGHTS September 18,
1986
(Commencement of
Ten Months Ended Years Ended April 30, Operations) to
February 28, 1993 1992 1991 1990 1989 1988 April 30, 1987
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 10.100000 $ 9.740000 $ 9.370000 $ 9.590000 $ 9.200000 $ 9.280000 $ 10.000000
period
Income from Investment
Operations
Net interest income .491990 .602911 .605344 .617696 .609839 .611080 .373362
Net realized and unrealized .930000 .360000 .370000 (.220000) .390000 (.080000) (.720000)
gain
(loss) on investments
Total from investment 1.421990 .962911 .975344 .397696 .999839 .531080 (.346638)
operations
Less Distributions
From net interest income (.491990) (.602911) (.605344) (.617696) (.609839) (.611080) (.373362)
Net asset value, end of period $ 11.030000 $ 10.100000 $ 9.740000 $ 9.370000 $ 9.590000 $ 9.200000 $ 9.280000
TOTAL RETURN (dagger) 17.39%* 10.14% 10.67% 4.15% 11.20% 5.97% (5.93)%*
</TABLE>
RATIOS AND
SUPPLEMENTAL
DATA
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Net assets, end of period (000 $ 274,872 $ 177,763 $ 113,711 $ 87,438 $ 69,350 $ 42,847 $ 35,247
omitted)
Ratio of expenses to average net .63%* .66% .72% .75% .83% .65% .45%*
assets
Ratio of expenses to average net .63%* .66% .72% .75% .83% .88% 1.12%*
assets before voluntary
expense limitation
Ratio of net interest income to 5.72%* 6.06% 6.30% 6.38% 6.54% 6.70% 6.27%*
average net assets
Portfolio turnover rate 27%* 19% 14% 10% 32% 76% 28%*
</TABLE>
* ANNUALIZED
(dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD THE ADVISER NOT
REIMBURSED CERTAIN EXPENSES DURING THE PERIODS SHOWN.
The per-share data and ratios have been audited by Price Waterhouse,
independent accountants, whose unqualified report is included in the funds'
annual report. The annual report is incorporated by reference into the
Statement of Additional Information.
