FIDELITY
(REGISTERED TRADEMARK)
NEW JERSEY
MUNICIPAL
MONEY MARKET
FUND
ANNUAL REPORT
NOVEMBER 30, 1997
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.
PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.
FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.
INVESTMENT CHANGES 8 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS
AND ONE YEAR.
INVESTMENTS 9 A COMPLETE LIST OF THE FUND'S INVESTMENTS.
FINANCIAL STATEMENTS 15 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.
NOTES 19 NOTES TO THE FINANCIAL STATEMENTS.
REPORT OF INDEPENDENT 22 THE AUDITORS' OPINION.
ACCOUNTANTS
DISTRIBUTIONS 23
To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY
THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL
AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Although financial turmoil in Pacific Basin countries was a catalyst
for significant volatility in U.S. markets in late October and into
November, the Standard & Poor's 500 Index has risen more than 31%
year-to-date, almost three times its historical annual average.
Meanwhile, bond markets - primarily influenced by a relatively steady
flow of positive news on the inflation front - continued to post solid
returns through the first 11 months of 1997.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the life of fund total return would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
FIDELITY NEW JERSEY MUNICIPAL 3.03% 14.14% 42.90%
MONEY MARKET FUND
NEW JERSEY TAX-FREE MONEY MARKET 3.00% 14.23% 45.25%
FUNDS AVERAGE
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or since
the fund started on March 17, 1988. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. To measure how the fund's performance
stacked up against its peers, you can compare it to the New Jersey
tax-free money market funds average, which reflects the performance of
municipal money market funds with similar objectives tracked by IBC
Financial Data, Inc. The past one year average represents a peer group
of 13 money market funds. (The periods covered by IBC Financial Data,
Inc. numbers are the closest available match to those covered by the
fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1997 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
FIDELITY NEW JERSEY MUNICIPAL 3.03% 2.68% 3.74%
MONEY MARKET FUND
NEW JERSEY TAX-FREE MONEY MARKET 3.00% 2.70% 3.93%
FUNDS AVERAGE
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
12/1/97 9/1/97 6/2/97 3/3/97 12/2/96
FIDELITY NEW JERSEY MUNICIPAL 3.24% 2.84% 3.17% 2.75% 2.88%
MONEY MARKET FUND
NEW JERSEY TAX-FREE 3.06% 2.65% 2.93% 2.69% 2.83%
MONEY MARKET FUNDS
AVERAGE
FIDELITY NEW JERSEY MUNICIPAL 5.41% 4.74% 5.29% 4.59% 4.81%
MONEY MARKET FUND -
TAX-EQUIVALENT
Row: 1, Col: 1, Value: 3.24
Row: 1, Col: 2, Value: 3.06
Row: 2, Col: 1, Value: 2.84
Row: 2, Col: 2, Value: 2.65
Row: 3, Col: 1, Value: 3.17
Row: 3, Col: 2, Value: 2.93
Row: 4, Col: 1, Value: 2.75
Row: 4, Col: 2, Value: 2.69
Row: 5, Col: 1, Value: 2.88
Row: 5, Col: 2, Value: 2.83
Fidelity New Jersey
Municipal Money
Market Fund
New Jersey Tax-Free
Money Market Funds
Average
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the New
Jersey tax-free money market funds average. Or you can look at the
fund's tax-equivalent yield, which is based on a combined effective
1997 federal and state income tax rate of 40.08%. A portion of the
fund's income may be subject to the alternative minimum tax. Figures
for the New Jersey tax-free money market funds average are from IBC
Financial Data, Inc.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However, a
straight comparison between the
two may be misleading because
it ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you would
have to earn on a similar taxable
investment to match the tax-free
yield - makes the comparison
more meaningful. Keep in mind
that the U.S. government neither
insures nor guarantees a money
market fund. And there is no
assurance that a money fund
will maintain a $1 share price.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Scott Orr, Portfolio Manager of Fidelity New Jersey
Municipal Money Market Fund
Q. SCOTT, WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST 12
MONTHS?
A. During the first several months of the period, investors tried to
figure out when the Federal Reserve Board might raise the fed funds
rate, which is the rate banks charge each other for overnight loans.
Over that period, data showed growth in the economy, but the pace of
that growth was inconsistent and there were no signs of inflation. As
a result, the Fed kept the fed funds rate steady at 5.25%. In February
and March, however, signs that the economy was growing at a stronger
clip changed market sentiment. Expectations of a rate increase
culminated in the Fed's announcement at its March 25 meeting that it
had increased the fed funds rate from 5.25% to 5.50%. For the next
month or so, the market expected the Fed to continue to raise rates.
However, at its May meeting, the Fed decided to hold off because
economic growth had moderated and inflation was still benign.
Q. WHAT'S HAPPENED SINCE THEN?
A. Economic activity was moderate to fairly strong, but inflation
remained in check. The Fed opted to keep rates unchanged, but remained
biased toward raising rates if signs of stronger inflation emerge. In
fact, in mid-October, several Fed officials made comments indicating
that they were thinking of raising rates in order to slow the economy.
However, that was before economic and market turmoil hit Southeast
Asia in late October and continued through November. Because of this
instability in the global financial markets, it now appears that the
Fed will hold off raising rates in order to avoid roiling the markets
and causing more anxiety. As a result, most market participants feel
the Fed will wait until the market disruption in Asia moderates before
deciding if a strong U.S. domestic economy still warrants a rate
increase.
Q. WHAT WAS THE FUND'S STRATEGY DURING THIS PERIOD?
A. For most of the period, the environment was one in which we
expected rates to be higher in the ensuing months. As a result, part
of our strategy was to invest in variable-rate securities because they
move up or down with changes in interest rates. At the same time, we
sought to buy fixed-rate notes when they were expected to provide a
higher yield than variable-rate securities over the terms of the
notes. In the New Jersey market, fixed-rate instruments often offer a
yield advantage over variable-rate notes because there is much
stronger demand for the latter. As a result of focusing more on
longer-term, fixed-rate securities in order to pick up extra yield,
the fund tended to maintain an average maturity in the 60-70 day
range. Since September, though, the maturity has come down somewhat
because variable-rate securities and new short-term issues became more
attractive. As a result, the average maturity was down to 50 days as
of November 30.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on November 30, 1997, was 3.24%,
compared to 3.19% six months ago. The more recent seven-day yield was
the equivalent of a 5.41% taxable rate of return for New Jersey
investors in the 40.08% combined state and federal income tax bracket.
Through November 30, 1997, the fund's 12-month total return was 3.03%,
compared to 3.00% for the New Jersey tax-free money market funds
average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Over the next several months, I believe the Fed will still be
biased toward raising rates, and that it is looking for reasons to do
so. At this point, the Fed has held off raising rates in spite of the
strength of the economy, because inflation has remained under control
and the uncertainty created in global financial markets from the
fallout in Asia has continued. With any inkling of inflationary
pressures, however, I believe the Fed would pull the trigger and raise
the fed funds rate at least one more time. As a result, I'm managing
the fund with the expectation that that will happen, although the
timing of a rate increase is unclear. A rate increase in the next few
months may help the U.S. economy, but it might send the worldwide
financial markets into an uproar. Therefore, I think the Fed would
like Asian markets to stabilize before it takes action.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: high current tax-free
income while maintaining
share-price stability by
investing in high-quality,
short-term New Jersey
municipal money market
securities
FUND NUMBER: 417
TRADING SYMBOL: FNJXX
START DATE: March 17, 1988
SIZE: as of November 30,
1997, more than $487 million
MANAGER: Scott Orr, since
April 1997; manager, various
Fidelity and Spartan municipal
money market funds; joined
Fidelity in 1989
(checkmark)
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
11/30/97 5/31/97 11/30/96
0 - 30 67 65 63
31 - 90 15 16 16
91 - 180 9 6 7
181 - 397 9 13 14
WEIGHTED AVERAGE MATURITY
11/30/97 5/31/97 11/30/96
FIDELITY NEW JERSEY
MUNICIPAL MONEY MARKET
FUND 50 DAYS 58 DAYS 59 DAYS
NEW JERSEY TAX-FREE
MONEY MARKET FUNDS
AVERAGE* 51 DAYS 51 DAYS 56 DAYS
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF NOVEMBER 30, 1997 AS OF MAY 31, 1997
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 24.0
Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 17.0
Row: 1, Col: 5, Value: 57.0
Variable rate
demand notes
(VRDNs) 51%
Commercial paper
(including CP
mode) 15%
Tender bonds 1%
Municipal notes 32%
Other 1%
Variable rate
demand notes
(VRDNs) 58%
Commercial paper
(including CP
mode) 17%
Tender bonds 0%
Municipal notes 24%
Other 1%
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 31.5
Row: 1, Col: 3, Value: 2.0
Row: 1, Col: 4, Value: 15.0
Row: 1, Col: 5, Value: 49.5
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS NOVEMBER 30, 1997
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
DELAWARE - 0.5%
Delaware Econ. Dev. Auth. (Delmarva Pwr. & Lt. Proj.)
Series 1994, 4%, VRDN (b) $ 2,375,000 $ 2,375,000
GEORGIA - 0.4%
Burke County Poll. Cont. Rev. (Georgia Pwr. Co. Vogtle Proj.)
Series 1995, 3.80%, VRDN 2,000,000 2,000,000
NEW JERSEY - 77.3%
Bernardsville Borough Gen. Oblig. BAN 4.50% 4/16/98 3,000,000
3,006,724
Bloomingdale Gen. Oblig. BAN 4.25% 3/13/98 1,200,000 1,201,279
Brick Township Gen. Oblig. BAN 4% 3/25/98 3,023,000 3,025,784
Bridgewater Special Assessment BAN 4.25% 5/20/98 1,700,000 1,702,344
Camden County Impt. Auth. Rev. VRDN:
(Jewish Commty. Center Proj.) Series 1995, 4%,
LOC National Westminster Bank PLC 2,200,000 2,200,000
(Parkview Redev. Hsg. Proj.) 3.90%,
LOC General Electric Capital Corp. (b) 6,000,000 6,000,000
Cape May County Gen. Oblig. BAN 4% 2/27/98 1,000,000 1,000,000
Cedar Grove Township Gen. Oblig. BAN 4% 3/9/98 1,553,000 1,553,000
Clark Township Gen. Oblig. BAN 4.14% 3/26/98 764,500 764,701
Cranford Township Gen. Oblig. BAN 4% 3/20/98 2,659,051 2,660,944
Delaware River Port Auth. Participating VRDN, Series SG-53,
4% (Liquidity Facility Societe Generale, France) (c) 9,000,000
9,000,000
Denville Township Board of Ed. BAN 4% 2/19/98 2,000,000 2,001,459
Denville Township Gen. Oblig. BAN 4% 12/26/97 3,908,000 3,909,114
East Windsor Regional School Dist. BAN 4.25% 8/26/98 2,300,000
2,306,477
Emerson Borough Gen. Oblig. BAN 4.125% 2/5/98 600,000 600,386
Essex County Impt. Auth. Rev. Series 1995, 3.65%
(AMBAC Insured)(BPA Morgan Guaranty Trust, NY) VRDN 14,400,000
14,400,000
Essex Fells Gen. Oblig. BAN 4% 12/12/97 2,100,000 2,100,233
Fairlawn Gen. Oblig. BAN 4% 12/12/97 3,668,092 3,668,499
Freehold Borough Gen. Oblig. BAN 4.25% 2/6/98 1,000,000 1,000,985
Gloucester County Ind. Poll. Cont. Fin. Auth. Rev. Rfdg.
(Monsanto Co. Proj.) Series 1992, 3.70%, VRDN 1,500,000 1,500,000
Hillside Township Gen. Oblig. BAN 4.25% 3/9/98 1,000,000 1,001,087
Hudson County Impt. Auth. Rev. (Essential Purp. Pooled
Gov't. Loan Prog.) Series 1986, 3.80%,
LOC Fuji Bank, VRDN 20,095,000 20,095,000
Hunterdon County Gen. Oblig. BAN 4.50% 5/22/98 6,100,000 6,118,182
Lacey Township Gen. Oblig. BAN 4.50% 4/30/98 700,000 701,152
Lavalette Borough Gen. Oblig. BAN:
4% 2/27/98 1,316,750 1,317,534
4.50% 5/1/98 1,000,000 1,001,974
Longbranch Gen. Oblig. BAN 4.25% 12/12/97 1,300,000 1,300,189
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
Montclair Township Gen. Oblig. BAN 4% 1/23/98 $ 2,000,000 $ 2,000,813
Montville Township Gen. Oblig. BAN 4.25% 8/28/98 4,350,000 4,364,235
New Jersey Econ. Dev. Auth. Econ. Dev. Rev., VRDN:
Rfdg.:
(RJB Associates 1983 Proj.) 3.95%,
LOC PNC Bank NA 500,000 500,000
(Assoc. for Retarded Citizens) Series 1989 CC,
3.90%, LOC PNC Bank NA 1,000,000 1,000,000
(AVP Realty Holdings, Inc.) Series 1989 A, 4%,
LOC PNC Bank NA (b) 950,000 950,000
(Catholic Community Services) Series 1995, 3.70%,
LOC First Union Nat'l. Bank 1,250,000 1,250,000
(Guttenplan's Bakery) Series 1989 G, 4%,
LOC PNC Bank NA (b) 550,000 550,000
(Hirsh Enterprises) Series 1989 II, 3.45%,
LOC PNC Bank NA (b) 350,000 350,000
(J.W. Holding Group) Series 1989 GG,
4%, LOC PNC Bank NA (b) 550,000 550,000
(M&S Realty) Series 1988 N, 4%, LOC PNC Bank NA (b) 750,000 750,000
(Philly Venture Fund) Series 1988 P, 3.90%,
LOC PNC Bank NA 950,000 950,000
(PVC Container Corp.) Series 1987 D, 4.10%,
LOC Nat'l. Westminster Bank PLC (b) 1,135,000 1,135,000
(Russ Berrie & Co., Inc.) 3.90%, LOC Bank of New York 1,000,000
1,000,000
New Jersey Econ. Dev. Auth. Econ. Growth Rev. Series F,
3.65%, LOC Fleet Bank, VRDN 700,000 700,000
New Jersey Econ. Dev. Auth. First Mtg. Rev. (Franciscan
Oaks Proj.) Series 1992 B, 3.80%,
LOC Bank of Scotland, VRDN 8,000,000 8,000,000
New Jersey Econ. Dev. Auth. Gas Facs. Rev. (NUI Corp. Proj.)
Series 1996 A, 3.80% (AMBAC Insured)(BPA Bank of
New York) VRDN (b) 2,400,000 2,400,000
New Jersey Econ. Dev. Auth. Ind. & Econ. Dev. Rev.
(Casa DiBertacchi Corp. Facs.) Series 1988, 3.95%,
LOC Marine Midland Bank, VRDN (b) 800,000 800,000
New Jersey Econ. Dev. Auth. Poll. Cont. Rev.
(Hoffman-La Roche Proj.) Series 1985, 3.85%,
LOC Wachovia Bank of North Carolina, VRDN 3,000,000 3,000,000
New Jersey Econ. Dev. Auth. Rev.:
Rfdg.:
(Natural Gas Co. Proj.) Series 1997A, 3.70%
(AMBAC Insured)(BPA Bank of New York) VRDN (b) 2,800,000 2,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Econ. Dev. Auth. Rev.: - continued
Bonds:
(Chambers Cogeneration Proj.) Series 1991:
3.60%, LOC Credit Local de France, CP mode (b) $ 16,900,000 $
16,900,000
3.65%, LOC Credit Local de France, CP mode (b) 9,000,000
9,000,000
VRDN:
(500 International Drive Partners Proj.) Series 1995,
3.90%, LOC First Union Nat'l. Bank 2,800,000 2,800,000 (Paterson
Composite):
Series B, 4.05%, LOC Chase Manhattan Bank (b) 2,000,000 2,000,000
Series C, 4.05%, LOC Chase Manhattan Bank (b) 400,000 400,000
(Peddie School Proj.) 3.80% (BPA PNC Bank) 500,000 500,000
New Jersey Econ. Dev. Auth. Water Fac. Rev. Rfdg., VRDN:
(New Jersey American Water Co.) Series 97B,
3.95% (FGIC Insured) (b) 8,900,000 8,900,000
(United Water New Jersey, Inc.):
Series 96 B, 3.55% (AMBAC Insured) (b) 600,000 600,000
Series 96-C, 3.65% (AMBAC Insured)
(BPA Bank of New York) (b) 400,000 400,000
New Jersey Edl. Facs. Auth. Participating VRDN, Series
SG-48, 4% (Liquidity Facility Societe Generale, France) (c) 2,900,000
2,900,000
New Jersey Gen. Oblig. Participating VRDN:
Series BT-104, 4%
(Liquidity Facility Bankers Trust Company, NY) (c) 2,500,000
2,500,000
Series 1995-CB1, 4.05%
(Liquidity Facility Chase Manhattan Bank) (c) 3,300,000 3,300,000
Series 1997 L, 4.05%
(Liquidity Facility Caisse des Depots et Consignments) (c)
11,000,000 11,000,000
Series 943005, 3.99% (Liquidity Facility Citibank, NA) (c) 3,500,000
3,500,000
New Jersey Gen. Oblig. TRAN Series 1998A,
(Liquidity Facility Bank of Nova Scotia/Commerzbank) CP:
3.75% 12/15/97 4,700,000 4,700,000
3.75% 12/16/97 4,700,000 4,700,000
3.75% 1/14/98 5,500,000 5,500,000
3.75% 1/21/98 2,500,000 2,500,000
3.80% 1/22/98 4,700,000 4,700,000
3.85% 1/22/98 8,000,000 8,000,000
3.75% 1/28/98 3,000,000 3,000,000
3.75% 2/18/98 6,000,000 6,000,000
3.75% 2/19/98 6,000,000 6,000,000
3.70% 2/26/98 6,000,000 6,000,000
New Jersey Health Care Facs. Fing. Auth. Rev.
(Hosp. Cap. Asset Fing. Prog.) Series 1985 B, 3.70%,
LOC Chase Manhattan Bank, VRDN 8,100,000 8,100,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
New Jersey Higher Ed. Assistance Auth. Student Loan
Rev. Bonds Series 1997 B, 3.90%, tender 6/1/98
(BPA Landesbank Hessen-Thuringen)(MBIA Insured) (b) $ 1,600,000 $
1,600,000
New Jersey Hsg. & Mtg. Fin. Agcy. Participating VRDN:
Rev.:
Series 1992-1, 4%
(Liquidity Bank Rabobank Nederland) (b)(c) 4,205,000 4,205,000
Series 1994 C-3003, 4.14% (MBIA Insured)
(Liquidity Facility Citibank, NA) (c) 6,800,000 6,800,000
Series 1994 C-3004, 3.99% (MBIA Insured)
(Liquidity Facility Citibank, NA) (c) 3,500,000 3,500,000
Series 1996 F, 3.94%
(Liquidity Facility Bank of America) (c) 5,060,000 5,060,000
Series PA-117, 4.05%
(Liquidity Facility Merrill Lynch & Co.) (b)(c) 4,580,000
4,580,000
Series PT-92, 4.05% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) (b)(c) 5,300,000 5,300,000
Series PT-118, 4.05%
(Liquidity Facility BANCO Santander) (b)(c) 4,500,000 4,500,000
New Jersey Sports and Exposition Auth. Rev., Series 1992 C,
3.70% (MBIA Insured)(BPA Barclays Bank) VRDN 9,670,000 9,670,000
North Brunswick Gen. Oblig. BAN 4.25% 8/28/98 2,769,965 2,776,823
Ocean City Gen. Oblig. BAN 4.25% 4/3/98 3,900,000 3,904,663
Ocean County Gen. Oblig. BAN 4.25% 6/19/98 7,200,000 7,219,667
Parsippany Troy Hills Gen. Oblig. BAN 4% 2/2/98 5,715,000 5,717,909
Passaic County Gen. Oblig. BAN:
4.50% 4/3/98 6,000,000 6,011,772
4.25% 9/25/98 14,000,000 14,043,319
Pequannock Township Gen. Oblig. BAN 4% 12/4/97 1,000,000 1,000,018
Salem County Poll. Cont. Fin. Auth. Rev. VRDN:
Rfdg.:
(Public Service Electric & Gas) Series 1997 A, 4.10%
(MBIA Insured)(BPA Swiss Bank Corp.) (b) 3,000,000 3,000,000
(Atlantic City Elec. Co. Proj.) Series 1997 A, 3.70%
(MBIA Insured)(BPA Bank of New York, NA) 4,400,000 4,400,000
Somerset County Ind. Poll. Cont. Fing. Auth. Rev.
Series 1982, 4.05% (Minnesota Mining &
Manufacturing Guaranteed) VRDN 600,000 600,000
Sparta Gen. Oblig. BAN 4.25% 6/12/98 2,224,000 2,228,610
Sussex County Gen. Oblig. BAN 4% 2/10/98 4,000,000 4,002,585
Vernon Township Board of Ed. BAN 4.25% 12/5/97 2,250,000 2,250,102
Verona Township Gen. Oblig. BAN 4.25% 11/12/98 3,200,000 3,212,522
Wall Township Gen. Oblig. BAN 4.125% 3/20/98 1,900,000 1,901,838
Washington Township (Gloucester Co.)
BAN 4.25% 4/20/98 3,000,000 3,003,649
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
West Windsor Plainsboro Reg. School Dist. BAN
4% 2/10/98 $ 2,300,000 $ 2,301,703
Woodbridge Township Gen. Oblig. BAN
4.25% 7/31/98 7,000,000 7,016,924
371,894,199
NEW YORK & NEW JERSEY - 19.2%
New York & New Jersey Port Auth. Participating VRDN:
(JFK Arpt. Term.):
Series 6 (Liquidity Facility Societe Generale, France):
4.05% (b)(c) 3,200,000 3,200,000
4.05% (b)(c) 9,000,000 9,000,000
4.05% (b)(c) 6,400,000 6,400,000
Series 1997, 4.20%
(Liquidity Facility Bank of New York) (b)(c) 5,200,000 5,200,000
Series 1997, 4.20%
(Liquidity Facility Bank of New York) (c) 1,900,000 1,900,000
Series PA-67, 4% (Liquidity Facility Merrill Lynch & Co.) (c)
2,000,000 2,000,000
Series SG-52, 4.05%
(Liquidity Facility Societe Generale France) (b)(c) 4,600,000
4,600,000
New York & New Jersey Port Auth. Rev.:
VRDN:
(Equiptment notes):
Series 1996-1, 3.95% 5,000,000 5,000,000
Series 1996-2, 4.05% (b) 3,500,000 3,500,000
Series 1996-4, 3.95% 4,200,000 4,200,000
Series 1997 1A, 3.95% 2,800,000 2,800,000
Series 1991, 3.95% (b)(d) 8,800,000 8,800,000
Series 1992, 3.825% (d) 6,800,000 6,800,000
Series 1995, 3.825% (b)(d) 9,400,000 9,400,000
Series 1997-1, 3.825% (d) 8,900,000 8,900,000
Series A, 3.70% 1/9/98
(Liquidity Facility Bank of Nova Scotia) CP (b) 3,120,000 3,120,000
Series B, 3.75% 3/10/98
(Liquidity Facility Bank of Nova Scotia) CP 1,215,000 1,215,000
New York & New Jersey Port. Auth. Spl. Oblig. Rev.
4% (BPA Bank of Tokyo-Mitsubishi Ltd.)
(BPA Sumitomo Bank Ltd. Japan) VRDN (b) 6,400,000 6,400,000
92,435,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
PUERTO RICO - 1.6%
Puerto Rico Commonwealth Pub. Impt. Participating VRDN:
Series PA-97, 3.75% (MBIA Insured)
(Liquidity Facility Merrill Lynch & Co.) (c) $ 2,145,000 $ 2,145,000
Series PT-63, 3.75% (Liquidity Facility
Bayerische Hypotheken-und Wechsel bank) (c) 3,655,000 3,655,000
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Bonds
Participating VRDN, Series SGA-43, 3.80%
(Liquidity Facility Societe Generale France) (c) 1,800,000 1,800,000
7,600,000
OTHER - 1.0%
Municipal Central Cash Fund (e)(f) 4,749,140 4,749,140
TOTAL INVESTMENTS - 100% $ 481,053,339
Total Cost for Income Tax Purposes $ 481,053,339
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
3. Provides evidence of ownership in one or more underlying municipal
bonds.
4. Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION AMORTIZED
SECURITY DATE COST
New York & New
Jersey Port Auth.
Rev. VRDN:
Series 1991, 3.95% 6/18/91 $ 8,800,000
Series 1992, 3.825% 2/14/92 $ 6,800,000
Series 1995, 3.825% 9/15/95 $ 9,400,000
Series 1997-1, 3.825% 9/15/97 $ 8,900,000
5. Information in this report regarding holdings by state and security
types do not reflect the holdings of the Municipal Central Cash Fund.
A listing of the Municipal Central Cash Fund's holdings as of its most
recent fiscal period end is available upon request.
6. At the period end, the seven-day yield of the Municipal Central
Cash Fund was 3.86% The yield refers to the income earned by investing
in the fund over the seven-day period, expressed as an annual
percentage.
INCOME TAX INFORMATION
At November 30, 1997, the fund had a capital loss carryforward of
approximately $55,000 of which $8,000, $21,000 and $26,000 will expire
on November 30, 2001, 2003 and 2005, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
NOVEMBER 30, 1997
ASSETS
INVESTMENT IN SECURITIES, AT VALUE - SEE ACCOMPANYING $ 481,053,339
SCHEDULE
CASH 2,296,854
INTEREST RECEIVABLE 4,575,123
TOTAL ASSETS 487,925,316
LIABILITIES
ACCRUED MANAGEMENT FEE $ 155,051
OTHER PAYABLES AND ACCRUED EXPENSES 109,049
TOTAL LIABILITIES 264,100
NET ASSETS $ 487,661,216
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 487,716,452
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (55,236)
NET ASSETS, FOR 487,716,515 SHARES OUTSTANDING $ 487,661,216
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($487,661,216 (DIVIDED BY) 487,716,515 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED NOVEMBER 30, 1997
INTEREST INCOME $ 16,542,482
EXPENSES
MANAGEMENT FEE $ 1,796,786
TRANSFER AGENT FEES 831,528
ACCOUNTING AND CUSTODIAN FEES AND EXPENSES 114,268
NON-INTERESTED TRUSTEES' COMPENSATION 719
REGISTRATION FEES 27,029
AUDIT 28,383
LEGAL 8,398
REPORTS TO SHAREHOLDERS 10,945
TOTAL EXPENSES BEFORE REDUCTIONS 2,818,056
EXPENSE REDUCTIONS (6,468) 2,811,588
NET INTEREST INCOME 13,730,894
NET REALIZED GAIN (LOSS) ON INVESTMENTS (26,426)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 13,704,468
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30,
1997 1996
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 13,730,894 $ 12,600,168
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (26,426) 517
INCREASE (DECREASE) IN NET UNREALIZED GAIN FROM ACCRETION - (353)
OF MARKET DISCOUNT
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 13,704,468 12,600,332
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (13,730,894) (12,600,168)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 1,381,762,190 1,156,682,684
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 13,414,508 12,239,915
COST OF SHARES REDEEMED (1,330,712,880) (1,180,407,784)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 64,463,818 (11,485,185)
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 64,437,392 (11,485,021)
NET ASSETS
BEGINNING OF PERIOD 423,223,824 434,708,845
END OF PERIOD $ 487,661,216 $ 423,223,824
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED NOVEMBER 30,
1997 1996 1995 1994 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
OF PERIOD
INCOME FROM INVESTMENT .030 .029 .033 .022 .019
OPERATIONS
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.030) (.029) (.033) (.022) (.019)
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 3.03% 2.93% 3.33% 2.19% 1.94%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 487,661 $ 423,224 $ 434,709 $ 399,548 $ 359,587
(000 OMITTED)
RATIO OF EXPENSES TO AVERAGE .61% .63% .62% .62% .63%
NET ASSETS
RATIO OF EXPENSES TO AVERAGE .61% .61%B .62% .62% .63%
NET ASSETS AFTER
EXPENSE REDUCTIONS
RATIO OF NET INTEREST INCOME TO 2.98% 2.89% 3.28% 2.17% 1.92%
AVERAGE NET ASSETS
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1997
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity New Jersey Municipal Money Market Fund (the fund) is a fund
of Fidelity Court Street Trust II (the trust) and is authorized to
issue an unlimited number of shares. The trust is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Delaware
business trust. The financial statements have been prepared in
conformity with generally accepted accounting principles which permit
management to make certain estimates and assumptions at the date of
the financial statements. The following summarizes the significant
accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. Accretion of market discount represents unrealized gain until
realized at the time of a security disposition or maturity.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
between the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission(the SEC), the fund may invest
in the Municipal Central Cash Fund (the Cash Fund) managed by FMR
Texas Inc. an affiliate of Fidelity Management & Research Company
(FMR). The Cash Fund is an open-end money market fund available only
to investment companies and other accounts managed by FMR and its
affiliates. The Cash Fund seeks preservation of capital, liquidity,
and current income by investing in high-quality, short-term municipal
securities of various states and municipalities. Income distributions
from the Cash Fund are declared daily and paid monthly from net
interest income. Income distributions received by the fund are
recorded as interest income in the accompanying financial statements.
2. OPERATING POLICIES -
CONTINUED
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell
securities on a delayed delivery basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of
the underlying securities and the date when the securities will be
delivered and paid for are fixed at the time the transaction is
negotiated. With respect to purchase commitments, the fund identifies
securities as segregated in its custodial records with a value at
least equal to the amount of the commitment. Losses may arise due to
changes in the market value of the underlying securities or if the
counterparty does not perform under the contract.
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, restricted securities (excluding 144A
issues) amounted to $33,900,000 or 7.0% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
the fund. The group fee rate is the weighted average of a series of
rates and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .1100% to .3700% for the
period. The annual individual fund fee rate is .25%. In the event
that these rates were lower than the contractual rates in effect
during the period, FMR voluntarily implemented the above rates, as
they resulted in the same or a lower management fee. For the period,
the management fee was equivalent to an annual rate of .39% of average
net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc.,
a wholly owned subsidiary of FMR, receives a fee from FMR of 50% of
the management fee payable to FMR. The fee is paid prior to any
voluntary expense reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for the fund.
UMB has entered into a sub-contract with Fidelity Service Company,
Inc. (FSC), an affiliate of FMR, under which FSC performs the
activities associated with the fund's transfer and shareholder
servicing agent and accounting functions. The fund pays account fees
and asset-based fees that vary according to account size and type of
account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. The accounting fee is
based on the level of average net assets for the month plus
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
TRANSFER AGENT AND ACCOUNTING
FEES - CONTINUED
out-of-pocket expenses. For the period, FSC received transfer agent
and accounting fees amounting to $831,528 and $93,106, respectively.
For the period, the transfer agent fees were equivalent to an annual
rate of .18% of average net assets.
Shareholders participating in the Fidelity Ultra Service
Account(registered trademark) Program (the Program) paid a $5.00
monthly fee to Fidelity Brokerage Services, Inc. (FBSI), an affiliate
of FMR, for performing services associated with the Program. For the
period, fees paid to FBSI by shareholders participating in the Program
amounted to $33,909. Effective September 1, 1997, the monthly fee was
eliminated.
4. EXPENSE REDUCTIONS.
FMR has entered into an arrangement on behalf of the fund with the
fund's transfer agent whereby credits realized as a result of
uninvested cash balances were used to reduce a portion of the fund's
expenses. During the period, the fund's expenses were reduced by
$6,468 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Court Street Trust II and the Shareholders
of Fidelity New Jersey Municipal Money Market Fund:
We have audited the accompanying statement of assets and liabilities
of Fidelity Court Street Trust II: Fidelity New Jersey Municipal Money
Market Fund, including the schedule of portfolio investments, as of
November 30, 1997, and the related statement of operations for the
year then ended, the statement of changes in net assets for each of
the two years in the period then ended and the financial highlights
for each of the five years in the period then ended. These financial
statements and financial highlights are the responsibility of the
fund's management. Our responsibility is to express an opinion on
these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit
to obtain reasonable assurance about whether the financial statements
and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements. Our procedures included
confirmation of securities owned as of November 30, 1997 by
correspondence with the custodian. An audit also includes assessing
the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of Fidelity Court Street Trust II: Fidelity New
Jersey Municipal Money Market Fund as of November 30, 1997, the
results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then
ended, in conformity with generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
January 5, 1998
DISTRIBUTIONS
During fiscal year ended 1997, 100% of the fund's income dividends was
free from federal income tax, and 28.59% of the fund's income
dividends was subject to the federal alternative minimum tax.
PROXY VOTING RESULTS
A special meeting of the fund's shareholders was held on December 17,
1997. The results of votes taken among shareholders on proposals
before them are listed below.
PROPOSAL 1
To elect as Trustees the following twelve nominees.
# OF % OF
SHARES VOTED SHARES VOTED
RALPH F. COX
AFFIRMATIVE 742,366,479.909 96.787
WITHHELD 24,642,287.090 3.213
TOTAL 767,008,766.999 100.000
PHYLLIS BURKE DAVIS
AFFIRMATIVE 741,858,140.779 96.721
WITHHELD 25,150,626.220 3.279
TOTAL 767,008,766.999 100.000
ROBERT M. GATES
AFFIRMATIVE 740,326,691.979 96.521
WITHHELD 26,682,075.020 3.479
TOTAL 767,008,766.999 100.000
EDWARD C. JOHNSON 3D
AFFIRMATIVE 742,526,984.799 96.808
WITHHELD 24,481,782.200 3.192
TOTAL 767,008,766.999 100.000
E. BRADLEY JONES
AFFIRMATIVE 738,558,877.569 96.291
WITHHELD 28,449,889.430 3.709
TOTAL 767,008,766.999 100.000
DONALD J. KIRK
AFFIRMATIVE 742,698,625.339 96.831
WITHHELD 24,310,141.660 3.169
TOTAL 767,008,766.999 100.000
# OF % OF
SHARES VOTED SHARES VOTED
PETER S. LYNCH
AFFIRMATIVE 742,804,693.399 96.844
WITHHELD 24,204,073.600 3.156
TOTAL 767,008,766.999 100.000
WILLIAM O. MCCOY
AFFIRMATIVE 742,777,102.439 96.841
WITHHELD 24,231,664.560 3.159
TOTAL 767,008,766.999 100.000
GERALD C. MCDONOUGH
AFFIRMATIVE 740,489,812.019 96.543
WITHHELD 26,518,954.980 3.457
TOTAL 767,008,766.999 100.000
MARVIN L. MANN
AFFIRMATIVE 742,492,623.319 96.804
WITHHELD 24,516,143.680 3.196
TOTAL 767,008,766.999 100.000
ROBERT C. POZEN
AFFIRMATIVE 742,603,015.859 96.818
WITHHELD 24,405,751.140 3.182
TOTAL 767,008,766.999 100.000
THOMAS R. WILLIAMS
AFFIRMATIVE 740,510,918.469 96.545
WITHHELD 26,497,848.530 3.455
TOTAL 767,008,766.999 100.000
PROPOSAL 2
To ratify the selection of Coopers & Lybrand L.L.P. as an independent
accountant of the fund.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 230,756,205.154 92.808
AGAINST 6,367,008.775 2.560
ABSTAIN 11,515,802.530 4.632
TOTAL 248,639,016.459 100.000
PROPOSAL 3
To amend the Trust Instrument to provide voting rights based on a
shareholder's total dollar investment in a fund, rather than on the
number of shares owned.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 689,235,885.364 89.860
AGAINST 38,356,553.755 5.001
ABSTAIN 39,416,327.880 5.139
TOTAL 767,008,766.999 100.000
PROPOSAL 4
To approve an amended management contract for the fund that would
reduce the management fee payable to FMR by the fund as FMR's assets
under management increase.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 209,101,283.159 84.098
AGAINST 15,094,410.540 6.071
ABSTAIN 24,443,322.760 9.831
TOTAL 248,639,016.459 100.000
PROPOSAL 5
To add the ability to issue senior securities to the extent permitted
under the Investment Company Act of 1940.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 204,874,639.374 82.398
AGAINST 17,540,671.975 7.055
ABSTAIN 26,223,705.110 10.547
TOTAL 248,639,016.459 100.000
PROPOSAL 6
To standardize language and explicitly exclude "tax-exempt obligations
issued or guaranteed by a U.S. territory or possession or a state or
local government, or a political subdivision thereof" from the
limitation on industry concentration.
# OF % OF
SHARES VOTED SHARES VOTED
AFFIRMATIVE 205,943,771.240 82.828
AGAINST 20,167,550.359 8.112
ABSTAIN 22,527,694.860 9.060
TOTAL 248,639,016.459 100.000
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
4001 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Boyce I. Greer, Vice President
Scott Orr, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
FIDELITY'S MUNICIPAL
MONEY MARKET FUNDS
California Municipal Money Market
Connecticut Municipal Money Market
Massachusetts Municipal Money Market
Michigan Municipal Money Market
Municipal Money Market
New Jersey Municipal Money Market
New York Municipal Money Market
Ohio Municipal Money Market
Spartan(registered trademark) Arizona Municipal
Money Market
Spartan California Municipal
Money Market
Spartan Connecticut Municipal
Money Market
Spartan Florida Municipal Money Market
Spartan Massachusetts Municipal
Money Market
Spartan Municipal Money Fund
Spartan New Jersey Municipal
Money Market
Spartan New York Municipal
Money Market
Spartan Pennsylvania Municipal
Money Market
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
