SUPPLEMENT TO FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
A FUND OF FIDELITY CALIFORNIA MUNICIPAL TRUST II
FIDELITY CALIFORNIA INSURED MUNICIPAL INCOME FUND
FIDELITY CALIFORNIA MUNICIPAL INCOME FUND
FUNDS OF FIDELITY CALIFORNIA MUNICIPAL TRUST
APRIL 19, 1996 STATEMENT OF ADDITIONAL INFORMATION
The following information replaces , supplements and
eliminates similar information found in "Investment Limitations of
Fidelity California Municipal Money Market Fund" beginning on page 2.
The fund's non-fundamental investment limitation (x) has been
eliminated.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces , supplements and
eliminates similar information found in "Investment Limitations of
Fidelity California Insured Municipal Income Fund" beginning on page 3.
The fund's non-fundamental investment limitation (xi) has been
eliminated.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces , supplements and
eliminates similar information found in "Investment Limitations of
Fidelity California Municipal Income Fund" beginning on page 5.
The fund's non-fundamental investment limitation (xi) has been
eliminated.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces similar information found in
"Performance" beginning on page 21.
1996 TAX RATES
Taxable Income* State Combined California
Federal Income Marginal and Federal Effective
Single Return Joint Return Tax Bracket Rate Tax Bracket**
$ 24,001 - 25,083 $40,101 - 50,166 28% 6.0% 32.32%
25,084 - 31,700 50,167 - 63,400 28% 8.0% 33.76%
31,701 - 58,150 63,401 - 96,900 28% 9.3% 34.70%
58,151 - 121,300 96,901 - 147,700 31% 9.3% 37.42%
121,301 - 263,750 147,701 - 263,750 36% 9.3% 41.95%
263,751 + 263,751 + 39.6% 9.3% 45.22%
* Net amount subject to federal income tax after deductions and exemptions.
Assumes ordinary income only.
** Excludes the impact of the phaseout of personal exemptions, limitations
on itemized deductions, and other credits, exclusions, and adjustments
which may increase a taxpayer's marginal tax rate. An increase in a
shareholder's marginal tax rate would increase that shareholder's
tax-equivalent yield.
Having determined your effective tax bracket, use the following table to
determine the tax-equivalent yield for a given tax-free yield.
If your effective combined federal and state personal tax rate in 1996 is:
32.32% 33.76% 34.70% 37.42% 41.95% 45.22%
To match
these
tax-free
yields: Your taxable investment would have to earn the following yield:
2% 2.96% 3.02% 3.06% 3.20% 3.45% 3.65%
3% 4.43% 4.53% 4.59% 4.79% 5.17% 5.48%
4% 5.91% 6.04% 6.13% 6.39% 6.89% 7.30%
5% 7.39% 7.55% 7.66% 7.99% 8.61% 9.13%
6% 8.87% 9.06% 9.19% 9.59% 10.34% 10.95%
7% 10.34% 10.57% 10.72% 11.19% 12.06% 12.78%
8% 11.82% 12.08% 12.25% 12.78% 13.78% 14.60%
9% 13.30% 13.59% 13.78% 14.38% 15.50% 16.43%
10% 14.78% 15.10% 15.31% 15.98% 17.23% 18.25%
11% 16.25% 16.61% 16.85% 17.58% 18.95% 20.08%
The California income tax rates are those in effect for 1996, however the
California income brackets are those in effect for 1995. California law
requires that the brackets be adjusted annually for inflation using 100% of
the California Consumer Price Index through June of the tax year. As of the
date of this Statement of Additional Information, the California Franchise
Tax Board had not published the 1996 inflation adjusted tax brackets.
The following information has been eliminated from "Management
Contracts" on page 34.
To comply with the California Code of Regulations, FMR will reimburse each
fund if and to the extent that each fund's aggregate annual operating
expenses exceed specified percentages of its average net assets. The
applicable percentages are 2 1/2% of the first $30 million, 2% of the next
$70 million, and 1 1/2% of average net assets in excess of $100 million.
When calculating each fund's expenses for purposes of this regulation, each
fund may exclude interest, taxes, brokerage commissions, and extraordinary
expenses, as well as a portion of its distribution plan expenses.
SUPPLEMENT TO THE SPARTAN(registered trademark) CALIFORNIA MUNICIPAL MONEY
MARKET FUND
A FUND OF FIDELITY CALIFORNIA MUNICIPAL TRUST II
SPARTAN(registered trademark) CALIFORNIA INTERMEDIATE MUNICIPAL INCOME FUND
SPARTAN(registered trademark) CALIFORNIA MUNICIPAL INCOME FUND
FUNDS OF FIDELITY CALIFORNIA MUNICIPAL TRUST
APRIL 19, 1996 STATEMENT OF ADDITIONAL INFORMATION
The following information replaces, supplements and eliminates similar
information found in "Investment Limitations of Spartan California
Municipal Money Market Fund" beginning on page 2.
The fund's non-fundamental investment limitation (xi) has been
eliminated.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(x) The fund does not currently intend to (a) purchase securities of other
investment companies, except in the open market where no commission except
the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces, supplements and eliminates similar
information found in "Investment Limitations of Spartan California
Intermediate Municipal Income Fund" beginning on page 3.
The fund's non-fundamental investment limitation (xi) has been
eliminated.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces , supplements and eliminates
similar information found in "Investment Limitations of Spartan
California Municipal Income Fund" beginning on page 5.
The fund's non-fundamental investment limitation (xi) has been
eliminated.
(i) In order to qualify as a regulated investment company under Subchapter
M of the Internal Revenue Code of 1986, as amended, the fund currently
intends to comply with certain diversification limits imposed by Subchapter
M.
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply (i) to securities received as dividends, through
offers of exchange, or as a result of a reorganization, consolidation, or
merger, or (ii) to securities of other open-end investment companies
managed by FMR or a successor or affiliate purchased pursuant to an
exemptive order granted by the SEC.
For purposes of limitation (i), Subchapter M generally requires the fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its assets so that no more than 5% of the
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of the fund's taxable year.
The following information replaces similar information found in
"Performance" beginning on page 20.
Use the first table to find your approximate effective tax bracket taking
into account federal and state taxes for 1996.
1996 TAX RATES
Taxable Income* State Combined California
Federal Income Marginal and Federal Effective
Single Return Joint Return Tax Bracket Rate Tax Bracket**
$ 24,001 - 25,083 $40,101 - 50,166 28% 6.0% 32.32%
25,084 - 31,700 50,167 - 63,400 28% 8.0% 33.76%
31,701 - 58,150 63,401 - 96,900 28% 9.3% 34.70%
58,151 - 121,300 96,901 - 147,700 31% 9.3% 37.42%
121,301 - 263,750 147,701 - 263,750 36% 9.3% 41.95%
263,751 + 263,751 + 39.6% 9.3% 45.22%
* Net amount subject to federal income tax after deductions and exemptions.
Assumes ordinary income only.
** Excludes the impact of the phaseout of personal exemptions, limitations
on itemized deductions, and other credits, exclusions, and adjustments
which may increase a taxpayer's marginal tax rate. An increase in a
shareholder's marginal tax rate would increase that shareholder's
tax-equivalent yield.
Having determined your effective tax bracket, use the following table to
determine the tax-equivalent yield for a given tax-free yield.
If your effective combined federal and state personal tax rate in 1996 is:
32.32% 33.76% 34.70% 37.42% 41.95% 45.22%
To match
these
tax-free
yields: Your taxable investment would have to earn the following yield:
2% 2.96% 3.02% 3.06% 3.20% 3.45% 3.65%
3% 4.43% 4.53% 4.59% 4.79% 5.17% 5.48%
4% 5.91% 6.04% 6.13% 6.39% 6.89% 7.30%
5% 7.39% 7.55% 7.66% 7.99% 8.61% 9.13%
6% 8.87% 9.06% 9.19% 9.59% 10.34% 10.95%
7% 10.34% 10.57% 10.72% 11.19% 12.06% 12.78%
8% 11.82% 12.08% 12.25% 12.78% 13.78% 14.60%
9% 13.30% 13.59% 13.78% 14.38% 15.50% 16.43%
10% 14.78% 15.10% 15.31% 15.98% 17.23% 18.25%
11% 16.25% 16.61% 16.85% 17.58% 18.95% 20.08%
The California income tax rates are those in effect for 1996, however the
California income brackets are those in effect for 1995. California law
requires that the brackets be adjusted annually for inflation using 100% of
the California Consumer Price Index through June of the tax year. As of the
date of this Statement of Additional Information, the California Franchise
Tax Board had not published the 1996 inflation adjusted tax brackets.
The following information has been eliminated from "Management
Contracts" on page 33.
To comply with the California Code of Regulations, FMR will reimburse each
fund if and to the extent that each fund's aggregate annual operating
expenses exceed specified percentages of its average net assets. The
applicable percentages are 2 1/2% of the first $30 million, 2% of the next
$70 million, and 1 1/2% of average net assets in excess of $100 million.
When calculating each fund's expenses for purposes of this regulation, each
fund may exclude interest, taxes, brokerage commissions, and extraordinary
expenses, as well as a portion of its distribution plan expenses and
custodian fees attributable to investments in foreign securities.
