SPARTAN(REGISTERED TRADEMARK)
CALIFORNIA MUNICIPAL
FUNDS
AND
FIDELITY
CALIFORNIA MUNICIPAL
MONEY MARKET FUND
ANNUAL REPORT
FEBRUARY 28, 1999
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING
STRATEGIES
SPARTAN CALIFORNIA MUNICIPAL
INCOME FUND
4 PERFORMANCE
7 FUND TALK: THE MANAGER'S
OVERVIEW
10 INVESTMENT CHANGES
11 INVESTMENTS
31 FINANCIAL STATEMENTS
SPARTAN CALIFORNIA MUNICIPAL
MONEY MARKET FUND
35 PERFORMANCE
37 FUND TALK: THE MANAGER'S
OVERVIEW
39 INVESTMENT CHANGES
40 INVESTMENTS
50 FINANCIAL STATEMENTS
FIDELITY CALIFORNIA MUNICIPAL
MONEY MARKET FUND
54 PERFORMANCE
56 FUND TALK: THE MANAGER'S
OVERVIEW
58 INVESTMENT CHANGES
59 INVESTMENTS
70 FINANCIAL STATEMENTS
NOTES 74 NOTES TO THE FINANCIAL
STATEMENTS
REPORT OF INDEPENDENT 80 THE AUDITORS' OPINION.
ACCOUNTANTS
DISTRIBUTIONS 81
OF SPECIAL NOTE 82
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT
AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888
FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND
MONEY.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
February proved to be a challenging month for the U.S. stock and bond
markets. Instances of profit worries and brisk selling in the
technology sector hampered the equity markets at times. Financial
shares, however, turned in their strongest performance in recent
months. Meanwhile, bond markets were unsettled by strong economic data
and Federal Reserve Chairman Alan Greenspan's concerns that the Fed's
rate cuts last fall may have overstimulated the economy.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
The longer your investment time frame, the less likely it is that you
will be affected by short-term market volatility. A 10-year investment
horizon appropriate for saving for a college education, for example,
enables you to weather market cycles in a long-term fund, which may
have a higher risk potential, but also has a higher potential rate of
return.
An intermediate-length fund could make sense if your investment
horizon is two to four years, while a short-term bond fund could be
the right choice if you need your money in one or two years.
If your time horizon is less than a year, you might want to consider
moving some of your bond investment into a money market fund. These
funds seek income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain fund expenses, the past 5 year and past 10 year
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
1999
SPARTAN CA MUNICIPAL INCOME 6.00% 36.32% 112.74%
LB California Municipal Bond 6.49% 39.97% n/a
California Municipal Debt 5.43% 34.14% 107.96%
Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the
Lehman Brothers California Municipal Bond Index - a market
value-weighted index of California investment-grade municipal bonds
with maturities of at least one year or more. To measure how the
fund's performance stacked up against its peers, you can compare it to
the California municipal debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past one year average represents a peer group of 107 mutual
funds. These benchmarks include reinvested dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
1999
SPARTAN CA MUNICIPAL INCOME 6.00% 6.39% 7.84%
LB California Municipal Bond 6.49% 6.96% n/a
California Municipal Debt 5.43% 6.04% 7.58%
Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Spartan CA Muni Income LB Municipal Bond
00091 LB015
1989/02/28 10000.00 10000.00
1989/03/31 9985.32 9976.10
1989/04/30 10275.03 10212.93
1989/05/31 10492.69 10425.06
1989/06/30 10626.33 10566.63
1989/07/31 10722.62 10710.44
1989/08/31 10592.27 10605.58
1989/09/30 10605.92 10573.98
1989/10/31 10711.56 10703.30
1989/11/30 10878.10 10890.61
1989/12/31 10921.85 10979.69
1990/01/31 10845.47 10927.76
1990/02/28 10984.08 11025.02
1990/03/31 11008.38 11028.32
1990/04/30 10851.45 10948.48
1990/05/31 11112.26 11187.48
1990/06/30 11214.41 11285.82
1990/07/31 11387.70 11451.72
1990/08/31 11230.07 11285.44
1990/09/30 11274.64 11291.88
1990/10/31 11420.33 11496.71
1990/11/30 11637.78 11727.91
1990/12/31 11681.82 11778.93
1991/01/31 11787.88 11937.00
1991/02/28 11831.41 12040.85
1991/03/31 11844.37 12045.19
1991/04/30 11984.04 12205.39
1991/05/31 12103.10 12313.89
1991/06/30 12105.80 12301.70
1991/07/31 12258.39 12451.54
1991/08/31 12368.23 12615.52
1991/09/30 12500.80 12779.78
1991/10/31 12655.16 12894.80
1991/11/30 12657.05 12930.77
1991/12/31 12868.54 13208.27
1992/01/31 12937.85 13238.38
1992/02/29 12959.92 13242.62
1992/03/31 12952.86 13247.52
1992/04/30 13055.38 13365.42
1992/05/31 13217.86 13522.73
1992/06/30 13424.16 13749.64
1992/07/31 13839.90 14161.86
1992/08/31 13647.96 14023.78
1992/09/30 13717.60 14115.49
1992/10/31 13463.33 13976.74
1992/11/30 13777.39 14227.06
1992/12/31 13989.93 14372.32
1993/01/31 14156.93 14539.47
1993/02/28 14804.28 15065.36
1993/03/31 14628.72 14906.12
1993/04/30 14759.95 15056.53
1993/05/31 14845.86 15141.14
1993/06/30 15085.11 15393.85
1993/07/31 15085.09 15414.01
1993/08/31 15452.94 15734.93
1993/09/30 15648.32 15914.16
1993/10/31 15675.04 15944.87
1993/11/30 15513.19 15804.40
1993/12/31 15869.23 16138.03
1994/01/31 16048.85 16322.32
1994/02/28 15605.44 15899.57
1994/03/31 14807.41 15252.14
1994/04/30 14869.61 15381.48
1994/05/31 14971.99 15514.84
1994/06/30 14818.99 15420.04
1994/07/31 15121.01 15702.69
1994/08/31 15173.06 15757.02
1994/09/30 14940.26 15525.71
1994/10/31 14573.72 15249.97
1994/11/30 14215.78 14974.25
1994/12/31 14459.78 15303.84
1995/01/31 14977.92 15741.22
1995/02/28 15463.26 16198.98
1995/03/31 15622.08 16385.10
1995/04/30 15625.04 16404.44
1995/05/31 16149.54 16927.90
1995/06/30 15939.99 16780.63
1995/07/31 16085.74 16939.71
1995/08/31 16273.87 17154.51
1995/09/30 16418.76 17263.09
1995/10/31 16695.15 17514.10
1995/11/30 17027.19 17804.66
1995/12/31 17232.20 17975.76
1996/01/31 17337.10 18111.48
1996/02/29 17203.28 17989.23
1996/03/31 16940.59 17759.32
1996/04/30 16885.16 17709.06
1996/05/31 16873.07 17701.98
1996/06/30 17096.39 17894.76
1996/07/31 17263.10 18057.60
1996/08/31 17294.20 18053.26
1996/09/30 17533.59 18306.01
1996/10/31 17762.46 18513.05
1996/11/30 18141.53 18851.84
1996/12/31 18051.62 18772.66
1997/01/31 18083.96 18808.14
1997/02/28 18262.31 18980.80
1997/03/31 18000.81 18727.79
1997/04/30 18155.26 18884.54
1997/05/31 18452.79 19168.56
1997/06/30 18654.73 19372.71
1997/07/31 19268.04 19909.33
1997/08/31 19031.51 19722.78
1997/09/30 19282.85 19956.89
1997/10/31 19378.36 20085.21
1997/11/30 19502.45 20203.31
1997/12/31 19822.08 20498.08
1998/01/31 20062.09 20709.62
1998/02/28 20069.22 20715.83
1998/03/31 20020.91 20734.06
1998/04/30 19909.00 20640.55
1998/05/31 20253.21 20967.29
1998/06/30 20299.85 21049.90
1998/07/31 20346.63 21102.74
1998/08/31 20708.52 21428.78
1998/09/30 21035.71 21695.78
1998/10/31 21031.75 21695.34
1998/11/30 21092.18 21771.50
1998/12/31 21122.23 21826.36
1999/01/31 21372.62 22085.87
1999/02/26 21273.66 21989.36
IMATRL PRASUN SHR__CHT 19990228 19990309 110246 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Spartan California Municipal Income Fund on February 28,
1989. As the chart shows, by February 28, 1999, the value of the
investment would have grown to $21,274 - a 112.74% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index - a market value-weighted index of
investment-grade municipal bonds with maturities of one year or more -
did over the same period. With dividends and capital gains, if any,
reinvested, the same $10,000 would have grown to $21,989 - a 119.89%
increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the share
price, return and yield of a
fund that invests in bonds will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TOTAL RETURN COMPONENTS
YEARS ENDED FEBRUARY 28, YEAR ENDED FEBRUARY 29, YEAR ENDED FEBRUARY 28,
1999 1998 1997 1996 1995
Dividend returns 4.73% 5.23% 5.37% 5.86% 5.96%
Capital returns 1.27% 4.66% 0.79% 5.39% -6.87%
Total returns 6.00% 9.89% 6.16% 11.25% -0.91%
</TABLE>
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital return reflects both the amount paid by the fund to
shareholders as capital gain distributions and changes in the fund's
share price. Both returns assume the dividends or capital gains, if
any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED FEBRUARY 28, PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
1999
Dividends per share 4.21(cents) 27.67(cents) 56.91(cents)
Annualized dividend rate 4.40% 4.46% 4.60%
30-day annualized yield 3.87% - -
30-day annualized 6.67% - -
tax-equivalent yield
DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$12.46 over the past one month, $12.50 over the past six months and
$12.38 over the past one year, you can compare the fund's income over
these three periods. The 30-day annualized YIELD is a standard formula
for all bond funds based on the yields of the bonds in the fund,
averaged over the past 30 days. This figure shows you the yield
characteristics of the fund's investments at the end of the period. It
also helps you compare funds from different companies on an equal
basis. The tax-equivalent yield shows what you would have to earn on a
taxable investment to equal the fund's tax-free yield, if you're in
the 41.95% combined effective 1999 federal and state income tax
bracket, but does not reflect the payment of the federal alternative
minimum tax, if applicable.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Backed by strong showings in
January and February, municipal
bonds narrowed the performance
gap between themselves and
taxable-bond sectors for the 12
months that ended February 28,
1999. During that time, the Lehman
Brothers Municipal Bond Index -
an index of approximately 48,000
investment-grade, fixed-rate and
tax-exempt bonds - returned
6.15%. In contrast, the Lehman
Brothers Aggregate Bond Index -
a widely followed measure of
taxable bond performance -
gained 6.27%. As is often the case,
the performance of municipal
bonds throughout the period was
dictated largely by supply and
demand. Overall, new supply
during the 12-month period was
strong - just short of the record
$292 billion issued in 1993 - but
demand did not keep pace. This
demand shortfall was in part linked
to a global flight to safety into U.S.
Treasuries that occurred in the late
summer and early fall. Then, when
equity markets rallied in the fourth
quarter of 1998, municipals
became mixed. As the municipal
bond market bid adieu to 1998
and welcomed 1999, though,
supply was beginning to level off.
This positive development, coupled
with an increase in demand from
retail investors, continued through
the first two months of 1999,
helping municipal bonds
outperform Treasuries in both
January and February.
(photograph of Christine Thompson)
An interview with Christine Thompson, Portfolio Manager of Spartan
California Municipal Income Fund
Q. HOW DID THE FUND PERFORM, CHRISTINE?
A. For the 12-month period that ended February 28, 1999, the fund had
a total return of 6.00%. To get a sense of how the fund did relative
to its competitors, the California municipal debt funds average
returned 5.43% for the same 12-month period, according to Lipper Inc.
Additionally, the Lehman Brothers California Municipal Bond Index -
which tracks the types of securities in which the fund invests -
returned 6.49%.
Q. WHAT HELPED THE FUND BEAT ITS PEERS DURING THE PAST SIX MONTHS?
A. One of the main reasons for the fund's outperformance was its
larger-than-average stake in intermediate-maturity bonds of between
five and 15 years, which performed well during the year. I emphasized
intermediate-maturity bonds because I felt they offered the most
attractive value given their interest-rate sensitivity - meaning the
magnitude with which their prices go up and down as interest rates
fluctuate.
Q. WHAT OTHER INVESTMENTS MADE A POSITIVE CONTRIBUTION TO PERFORMANCE?
A. Non-callable bonds - which can't be redeemed by their issuer before
maturity - were some of the market's best performers during the past
12 months. Municipal issuers, like homeowners, often refinance their
debt when interest rates fall. When they do so, they call - or redeem
- - their outstanding bonds. Since many investors didn't want to face
the prospects of having to invest the proceeds from called bonds at
lower, prevailing interest rates, they tended to gravitate toward
non-callable bonds.
Q. HOW DID YOU ALLOCATE THE FUND'S INVESTMENTS ACROSS BONDS WITH
VARIOUS CREDIT RATINGS?
A. Generally speaking, the fund's investments were concentrated in
bonds rated A or higher because I felt that was where the best values
could be found. In my view, bonds rated A or higher typically offered
an attractive amount of yield given their credit quality. Because the
yield differential - or yield spread - was narrow, it signaled that
investors didn't demand a lot of additional yield from Baa-rated
securities to compensate for their slightly lower credit quality. That
said, the fund continued to hold about 11% of investments in Baa-rated
securities that, with the help of Fidelity's research team, I
identified as having both an attractive yield and good prospects for
appreciation resulting from possible credit improvement.
Q. WERE THERE ANY DISAPPOINTMENTS DURING THE PERIOD?
A. My focus on non-callable bonds and my emphasis on higher-quality
securities meant that the fund had fewer of the types of bonds that
benefited from advance refunding. Through a process known as
defeasance, a bond that is advance refunded becomes backed by U.S.
government securities and assumes a shorter maturity date equal to its
first permissible call date. This process, which generally results in
a boost to the bond's price, is a form of refinancing which usually
follows a decline in interest rates.
Q. WHAT FACTORS DO YOU CONSIDER WHEN CHOOSING VARIOUS GENERAL
OBLIGATION BONDS (GOS) - WHICH MADE UP THE FUND'S LARGEST SECTOR
CONCENTRATION THROUGHOUT THE PERIOD?
A. Let me begin by saying that a GO is backed by the full faith and
credit of its issuer and is repaid with general revenues, including
taxes and other fee revenues. I've tended to favor GOs that are issued
by cities, towns and counties. Many of these issuers have reaped the
benefits of strong local economies in California, collecting higher
property taxes and other revenues and enjoying better fiscal health.
Q. WHAT'S YOUR OUTLOOK FOR THE MUNICIPAL MARKET?
A. The direction of interest rates will be the most important
determinant for municipal bond performance, but no one can predict
that with any certainty. At the end of the period, it appeared that
the market had begun to turn its focus away from international events
and was more attuned to domestic issues. As a result, bond prices
currently reflect expectations that the Federal Reserve may raise
interest rates in order to thwart the inflationary pressures that can
stem from fast-paced economic growth. One factor that could benefit
municipals is that they were priced attractively compared to their
U.S. Treasury counterparts at the end of the period. If investors
recognize and act on that relative value by investing in them,
municipals could perform well relative to Treasuries.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: high level of current
income, exempt from federal
and California state personal
income tax for California
residents
FUND NUMBER: 091
TRADING SYMBOL: FCTFX
START DATE: July 7, 1984
SIZE: as of February 28,
1999, more than $1.3
billion
MANAGER: Christine Thompson,
since 1998; manager,
various Fidelity and Spartan
municipal income funds;
joined Fidelity in 1985
CHRISTINE THOMPSON ON THE
CALIFORNIA ECONOMY:
"California continued to enjoy an
economic expansion in 1998,
and ended the year as one of the
10 fastest-growing states in the
nation. That said, the state's
economy does show some signs of
slowing. Exports to Asia are down
as that region continues to struggle
with prolonged economic and fiscal
problems. Sales of high-tech
electronics, particularly
semiconductors, were off
substantially in the second half of
this past year, although they have
shown recent signs of strength. Weak
global demand has also clouded the
outlook for the state's aircraft
industry, and Boeing is expected
to lay off more than 6,000 workers in
the coming year. Until Asian
demand firms, the state's economic
growth could slow from its
somewhat torrid pace. Even so, I
expect that over the long term,
California will continue to grow
faster than the nation as a whole."
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP FIVE SECTORS AS OF
FEBRUARY 28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE SECTORS 6 MONTHS AGO
General Obligations 22.4 21.8
Escrowed/Pre-Refunded 13.6 10.6
Electric Utilities 12.6 14.9
Transportation 11.4 10.0
Special Tax 10.0 10.1
AVERAGE YEARS TO MATURITY AS
OF FEBRUARY 28, 1999
6 MONTHS AGO
Years 13.3 14.2
</TABLE>
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF FEBRUARY 28,
1999
6 MONTHS AGO
Years 7.0 7.2
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
QUALITY DIVERSIFICATION
(MOODY'S RATINGS)
AS OF FEBRUARY 28, 1999
Aaa 57.2%
Aa, A 28.8%
Baa 11.4%
Not Rated 0.2%
Short-term
investments 2.4%
Row: 1, Col: 1, Value: 56.4
Row: 1, Col: 2, Value: 28.8
Row: 1, Col: 3, Value: 11.4
Row: 1, Col: 4, Value: 1.0
Row: 1, Col: 5, Value: 2.4
AS OF AUGUST 31, 1998
Aaa 56.7%
Aa, A 26.5%
Baa 10.7%
Not Rated 0.3%
Short-term
investments 5.8%
Row: 1, Col: 1, Value: 55.9
Row: 1, Col: 2, Value: 26.5
Row: 1, Col: 3, Value: 10.7
Row: 1, Col: 4, Value: 1.1
Row: 1, Col: 5, Value: 5.8
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MUNICIPAL BONDS - 97.6%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 94.8%
Alameda Corridor Trans. Auth.
Rev. Series A:
5% 10/1/29 (MBIA Insured) Aaa $ 3,150 $ 3,122
5.25% 10/1/21 (MBIA Insured) Aaa 7,475 7,652
Buena Park Cmnty. Redev. BBB+ 3,500 3,815
Agcy. Tax Allocation Rfdg.
(Central Bus. District
Proj.) Series A, 7.1% 9/1/14
Burbank Redev. Agcy. Tax
Allocation Rfdg.:
(City Ctr. Redev. Proj.) Aaa 4,000 4,027
Series A, 5% 12/1/15
Series A, 5.75% 12/1/08 Baa1 4,655 4,981
Cabrillo Unified School Aaa 2,150 1,298
District (Cap. Appreciation)
Series A, 0% 8/1/10 (AMBAC
Insured)
California Dept. of Wtr.
Resources Rev. (Central
Valley Proj.):
Series J1, 7% 12/1/12 Aa2 1,000 1,261
Series J2, 5.9% 12/1/05 Aa2 6,400 7,164
Series J3, 5.9% 12/1/05 Aa2 1,005 1,125
Series S, 5% 12/1/19 Aa2 3,160 3,156
California Edl. Facilities
Auth. Rev.:
(California Ln. Prog.) Series Aaa 4,900 5,212
A, 6% 3/1/16 (MBIA Insured)
(e)
(Claremont McKenna College):
5% 11/1/29 Aa1 5,000 4,947
5.1% 11/1/17 Aa1 1,000 1,015
(Pooled Facilities Prog.) Aaa 185 187
7.625% 11/1/12 (MBIA Insured)
(Stanford Univ.) Series N, Aaa 32,475 32,974
5.2% 12/1/27
(Univ. of San Diego) 5% Aaa 5,000 4,948
10/1/28 (AMBAC Insured)
Rfdg.:
(Chapman Univ.) 5.375% AAA 2,000 2,080
10/1/16 (Connie Lee Insured)
(Stanford Univ.) Series O, Aaa 7,500 7,545
5.125% 1/1/31
(Univ. of Southern California):
Series A:
5.65% 10/1/10 Aa2 2,840 3,155
5.7% 10/1/15 Aa2 4,500 4,862
Series C, 5.125% 10/1/28 Aa2 7,725 7,756
California Franchise Tax A1 1,825 1,988
Board Ctfs. of Partn. Rfdg.
5.5% 10/1/06
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.:
Rfdg.:
5% 2/1/20 Aa3 $ 10,000 $ 9,961
5% 2/1/21 Aa3 7,000 6,963
5% 10/1/18 Aa3 10,000 10,003
5% 10/1/23 Aa3 8,000 7,934
5.25% 10/1/13 Aa3 1,700 1,774
5.25% 10/1/14 Aa3 3,000 3,114
5.25% 10/1/17 Aa3 1,500 1,537
5.5% 3/1/20 (FSA Insured) Aaa 3,500 3,691
6.1% 11/1/01 Aa3 1,250 1,337
6.1% 2/1/02 Aa3 1,000 1,070
6.2% 9/1/05 Aa3 1,250 1,416
6.4% 2/1/05 Aa3 3,375 3,822
6.5% 2/1/07 Aa3 1,000 1,159
6.9% 4/1/05 Aa3 2,350 2,725
7% 10/1/04 Aa3 1,000 1,158
7% 10/1/10 Aa3 6,695 8,294
California Health Facilities
Fing. Auth. Rev.:
(Gould Med. Foundation) A 4,500 4,782
Series A, 7.3% 4/1/20
(Escrowed to Maturity) (f)
(Kaiser Permante) Series A, Aaa 4,720 4,862
5.55% 8/15/25 (MBIA Insured)
(Summit Med. Ctr.) Series A, Aaa 2,400 2,605
5.5% 5/1/05 (FSA Insured)
Rfdg.:
(Alexian Brothers-San Jose):
7.05% 1/1/09 (MBIA Insured) Aaa 4,500 4,712
7.125% 1/1/16 (MBIA Insured) Aaa 2,510 2,625
(Catholic Healthcare West)
Series A:
4.5% 7/1/00 A2 3,000 3,049
4.5% 7/1/02 A2 7,065 7,242
4.5% 7/1/03 A2 1,210 1,240
4.5% 7/1/04 A2 1,500 1,530
5% 7/1/01 A2 3,615 3,739
(Children's Hosp.):
6% 7/1/03 (MBIA Insured) Aaa 1,200 1,310
6% 7/1/05 (MBIA Insured) Aaa 1,850 2,064
6% 7/1/06 (MBIA Insured) Aaa 1,500 1,687
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Health Facilities
Fing. Auth. Rev.: - continued
(Sutter Health) Series C, Aaa $ 650 $ 714
5.5% 8/15/07 (FSA Insured)
California Hsg. Fin. Agcy.
Rev.:
(Home Mtg.):
Series C:
7.6% 8/1/30 (e) Aa2 3,720 3,844
8.3% 8/1/19 (e) Aa2 500 507
Series F, 7.875% 8/1/19 Aa2 530 538
Series I, 4.95% 8/1/28 (MBIA Aaa 3,235 3,280
Insured) (e)
Series J, 4.85% 8/1/27 (MBIA Aaa 3,500 3,529
Insured) (e)
Series L, 5.7% 8/1/25 (MBIA Aaa 1,710 1,750
Insured) (e)
(Home Mtg.) (Cap.
Appreciation):
Series 1983 A, 0% 2/1/15 Aa2 8,187 1,819
Series 1983 B, 0% 8/1/15 Aa2 170 32
Series A, 0% 8/1/23 (e) Aa2 1,060 163
Series C, 0% 8/1/21 (e) Aa2 3,645 660
Rfdg. (Home Mtg.) Series A, Aaa 1,835 1,898
5% 8/1/03 (MBIA Insured)
California Poll. Cont. Fing.
Auth. Rev. Rfdg.:
(Gen. Motors Corp.) 5.5% A3 1,500 1,530
4/1/08
(San Diego Gas & Elec.) A2 4,000 4,532
Series A, 5.9% 6/1/14
California Pub. Cap. Impt. Aaa 8,965 9,137
Fin. Auth. Rev. (Pooled
Proj.) Series B, 8.1% 3/1/18
(MBIA Insured)
California Pub. Works Board
Lease Rev.:
(California Science Ctr.)
Series A:
4.6% 10/1/06 A1 1,060 1,100
5% 10/1/10 A1 1,300 1,367
(California State Univ. Proj.):
Series A, 6.625% 10/1/10 Aaa 2,600 2,917
(Pre-Refunded to 10/1/2002
@ 102) (f)
Series C, 5.125% 9/1/22 Aaa 10,000 10,056
(AMBAC Insured)
(Cmnty. College Proj.) Series A 2,000 2,205
A, 5.875% 10/1/08
(Dept. of Corrections State A1 1,000 1,055
Prison, Central California
Womens Facility) Series A,
7% 9/1/00
(Dept. of Corrections State Aaa 5,000 5,550
Prison, Corcoran II) Series
A, 6% 1/1/05 (AMBAC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Pub. Works Board
Lease Rev.: - continued
(Dept. of Corrections State
Prison, Madera) Series E:
5.5% 6/1/15 A1 $ 6,750 $ 7,310
5.5% 6/1/19 A1 3,000 3,123
6% 6/1/07 A1 2,090 2,363
(Dept. of Corrections State Aaa 4,000 4,243
Prison, Susanville) Series
D, 5.25% 6/1/15 (FSA Insured)
(Franchise Tax Board-PH II) A1 1,150 1,252
Series A, 6.25% 9/1/11
(Pre-Refunded to 9/1/2001 @
102) (f)
(Substance Abuse Treatment Aaa 3,000 3,217
Facilities, Corcoran II)
Series A, 5.5% 1/1/14 (AMBAC
Insured)
(Various California State
Univ. Projs.):
Series A:
6.1% 10/1/06 A1 1,210 1,360
6.3% 10/1/10 (Pre-Refunded to A1 3,000 3,439
10/1/2004 @ 102) (f)
6.5% 9/1/03 A 1,045 1,164
6.5% 9/1/04 A 1,090 1,230
Series B:
5.5% 6/1/14 Aa3 2,750 2,905
5.5% 6/1/19 Aa3 2,000 2,083
5.55% 6/1/10 Aa3 3,195 3,547
6.4% 12/1/09 Aa3 3,700 4,386
Rfdg.:
(California Cmnty. Colleges):
Series A 5.25% 12/1/16 A1 4,450 4,590
Series B 5.25% 3/1/09 A1 2,915 3,142
Series D, 5.375% 3/1/12 A 1,500 1,585
(California State Univ.) A1 2,710 2,988
Series A 5.5% 10/1/09
(Dept. of Corrections State
Prison, Monterey County)
Series D:
5.375% 11/1/11 A1 2,500 2,681
5.375% 11/1/12 A1 1,250 1,330
5.375% 11/1/13 A1 4,500 4,771
5.375% 11/1/14 A1 5,000 5,261
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Pub. Works Board
Lease Rev.: - continued
Rfdg.:
(Library & Courts Annex) A1 $ 1,290 $ 1,418
Series A 5.5% 5/1/09
(Various California State Aa3 8,250 9,027
Univ. Projs.) Series A,
5.5% 6/1/14
California Statewide Cmnty.
Dev. Auth. Rev.:
(Sisters Charity Leavenworth) Aa3 1,315 1,318
5% 12/1/14
Ctfs. of Prtn.:
(Villaview Cmnty. Hosp., A+ 1,885 2,056
Inc.) Series A, 7% 9/1/09
(California Gen. Oblig.
Guaranteed)
5.375% 10/1/13 (California A+ 1,250 1,297
Gen. Oblig. Guaranteed)
5.616% 7/1/13 (MBIA Insured) Aaa 10,000 10,603
(California Gen. Oblig.
Guaranteed)
Ctfs. of Prtn. Rfdg.:
(Children's Hosp.) 6% 6/1/13 Aaa 2,470 2,831
(MBIA Insured)
(Hosp. Triad Healthcare):
5.9% 8/1/01 (California Gen. A+ 200 212
Oblig. Guaranteed) (Escrowed
to Maturity) (f)
6.25% 8/1/06 (California Gen. A+ 5,000 5,538
Oblig. Guaranteed) (Escrowed
to Maturity) (f)
(St. Joseph Health Sys.):
5.5% 7/1/07 Aa3 1,425 1,549
5.5% 7/1/14 Aa3 4,500 4,647
5.5% 7/1/23 Aa3 3,000 3,067
Campbell Gen. Oblig. Ctfs. of A2 4,965 5,305
Prtn. Rfdg. (Civic Ctr.
Proj.) 6% 10/1/18
Carson Redev. Agcy. Rev. Rfdg.:
(Redev. Proj. Area #1):
6.375% 10/1/12 Baa1 3,965 4,276
6.375% 10/1/16 Baa1 2,000 2,149
(Redev. Proj. Area #2):
5.5% 10/1/02 Baa2 100 105
5.875% 10/1/09 Baa2 2,000 2,115
Castaic Lake Wtr. Agcy. Ctfs.
of Prtn. Rfdg. (Wtr. Sys.
Impt. Proj.) Series A:
7% 8/1/11 (MBIA Insured) Aaa 1,500 1,865
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Castaic Lake Wtr. Agcy. Ctfs.
of Prtn. Rfdg. (Wtr. Sys.
Impt. Proj.) Series A: -
continued
7% 8/1/12 (MBIA Insured) Aaa $ 1,000 $ 1,256
7% 8/1/13 (MBIA Insured) Aaa 4,740 5,963
7.25% 8/1/07 (MBIA Insured) Aaa 1,755 2,143
Central Coast Wtr. Auth. Rev. Aaa 1,420 1,410
Rfdg. (State Wtr. Reg'l.
Facilities Proj.) Series A,
5% 10/1/22 (AMBAC Insured)
Central Valley Fin. Auth.
Cogeneration Proj. Rev.
(Carson Ice Gen. Proj.):
5.5% 7/1/01 BBB- 1,400 1,457
6% 7/1/09 BBB- 4,800 5,139
6.1% 7/1/13 (Pre-Refunded to BBB- 2,000 2,233
7/1/2003 @ 102) (f)
Chino Basin Reg'l. Fing.
Auth. Rev. Rfdg. (Muni. Wtr.
District Swr. Sys. Proj.):
7% 8/1/05 (AMBAC Insured) Aaa 1,185 1,390
7% 8/1/09 (AMBAC Insured) Aaa 350 431
Clovis Unified School
District (Cap. Appreciation)
Series B:
0% 8/1/02 (MBIA Insured) Aaa 300 265
(Escrowed to Maturity) (f)
0% 8/1/03 (MBIA Insured) Aaa 3,485 2,958
(Escrowed to Maturity) (f)
Coalinga Gen. Oblig. Ctfs. of BBB+ 1,655 1,724
Prtn. 7% 4/1/10
Contra Costa County Ctfs. of
Prtn. (Merrithew Mem. Hosp.)
(Cap. Appreciation):
0% 11/1/13 (Escrowed to Aaa 6,805 3,420
Maturity) (f)
0% 11/1/14 (Escrowed to Aaa 3,000 1,419
Maturity) (f)
Contra Costa School Fing. Aaa 3,420 1,095
Auth. (Vista Unified School
District School Sites) (Cap.
Appreciation) Series A, 0%
9/1/17 (FSA Insured)
(Pre-Refunded to 9/1/2002 @
36.3395) (f)
Contra Costa Trans. Auth.
Sales Tax Rev. Series A:
5.5% 3/1/03 (FGIC Insured) Aaa 11,845 12,653
6% 3/1/03 (FGIC Insured) Aaa 2,530 2,749
Contra Costa Wtr. District Aaa 2,000 2,184
Wtr. Rev. Series G, 5.75%
10/1/14 (MBIA Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Desert Hosp. District Hosp. Aaa $ 13,000 $ 14,324
Rev. Ctfs. of Prtn. 6.392%
7/28/20 (FSA Insured)
(Pre-Refunded to 7/23/2002 @
102) (f)
Duarte Ctfs. of Prtn. (City
of Hope Med. Ctr.):
6% 4/1/08 Baa1 4,930 5,223
6.25% 4/1/23 Baa1 15,100 15,881
East Bay Muni. Util. District Aaa 1,550 1,731
Wastewtr. Treatment Sys.
Rev. Rfdg. 6% 6/1/05 (FGIC
Insured)
East Bay Muni. Util. District
Wtr. Sys. Rev. Rfdg.:
6% 6/1/02 (FGIC Insured) Aaa 2,000 2,149
6% 6/1/03 (FGIC Insured) Aaa 2,000 2,185
6% 6/1/09 (AMBAC Insured) Aaa 1,000 1,084
East Bay Reg'l. Park District Aaa 1,285 1,437
Series C, 6.5% 9/1/03 (FGIC
Insured)
Eastern Muni. Wtr. District Aaa 3,600 4,429
Wtr. & Swr. Rev. Ctfs. of
Prtn. 6.75% 7/1/12 (FGIC
Insured)
Elk Grove Unified School
District Spl. Tax Rfdg.
(Cmnty. Facilities District
#1):
6.5% 12/1/07 (AMBAC Insured) Aaa 1,340 1,578
6.5% 12/1/24 (AMBAC Insured) Aaa 4,000 4,885
Encinitas Union School
District (Cap. Appreciation):
0% 8/1/03 (MBIA Insured) Aaa 1,750 1,485
0% 8/1/04 (MBIA Insured) Aaa 1,750 1,419
0% 8/1/10 (MBIA Insured) Aaa 1,000 604
Escondido Joint Pwrs Fing. Aaa 570 461
Auth. Lease Rev. Rfdg.
(California Ctr. for the
Arts) (Cap. Appreciation) 0%
9/1/04 (AMBAC Insured)
Eureka Union School District
Ctfs. of Prtn.:
Series A, 6.9% 9/1/27 (FSA Aaa 660 718
Insured)
Series B, 6.9% 9/1/27 (FSA Aaa 1,555 1,669
Insured)
Fairfield-Suisun Swr.
District Swr. Rev.:
Rfdg. Series A:
0% 5/1/07 (MBIA Insured) Aaa 1,635 1,164
0% 5/1/08 (MBIA Insured) Aaa 2,085 1,418
0% 5/1/09 (MBIA Insured) Aaa 2,080 1,341
Folsom Pub. Fing. Auth. Local BBB+ 1,285 1,355
Agcy. Rev. Series A, 7.25%
10/1/10
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Fontana Redev. Agcy. Tax BBB+ $ 6,500 $ 7,318
Allocation Rfdg. (Jurupa
Hills Redev. Proj.) Series
A, 7% 10/1/14
Foothill/Eastern Trans.
Corridor Agcy. Toll Road
Rev. (Cap. Appreciton)
Series A:
0% 1/1/04 Baa3 1,600 1,294
0% 1/1/05 Baa3 1,000 770
0% 1/1/08 (b) Baa3 2,000 1,608
Foster City Pub. Fing. Auth.
Rev. (Foster City Cmnty.
Dev. Proj. Ln.) Series A:
5.5% 9/1/09 A- 370 396
5.8% 9/1/16 A- 1,000 1,062
6% 9/1/06 A- 1,355 1,455
6% 9/1/07 A- 1,440 1,543
6% 9/1/13 A- 1,925 2,038
Fremont Unified School Aaa 1,000 639
District Alameda County
(Cap. Appreciation) Series
F, 0% 8/1/09 (MBIA Insured)
Inglewood Hosp. Rev. (Daniel A+ 1,000 1,066
Freeman Hosp., Inc.) 6.5%
5/1/01 (California Gen.
Oblig. Guaranteed) (Escrowed
to Maturity) (f)
Kern High School District 7% A1 1,090 1,345
8/1/09 (Escrowed to
Maturity) (f)
King Gen. Oblig. Ctfs. of - 2,490 2,567
Prtn. 7.5% 7/1/04
La Quinta Redev. Agcy. Tax
Allocation:
(Redev. Proj. Area #1) 7.3% Aaa 1,000 1,192
9/1/05 (MBIA Insured)
Rfdg. (Redev. Proj. Area #1):
7.3% 9/1/06 (MBIA Insured) Aaa 620 751
7.3% 9/1/11 (MBIA Insured) Aaa 555 710
Local Govt. Fin. Auth. Rev.
(Oakland Central District)
(Cap. Appreciation):
0% 9/1/08 (MBIA Insured) Aaa 3,710 2,489
0% 9/1/09 (MBIA Insured) Aaa 3,565 2,265
Long Beach Hbr. Rev.:
Rfdg. Series A:
5.5% 5/15/08 (FGIC Insured) Aaa 4,390 4,816
(e)
6% 5/15/09 (FGIC Insured) (e) Aaa 3,000 3,414
5.125% 5/15/13 (e) Aa3 4,500 4,601
5.5% 5/15/11 (MBIA Insured) Aaa 700 752
(e)
5.5% 5/15/15 (MBIA Insured) Aaa 3,710 3,890
(e)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Long Beach Hbr. Rev.: -
continued
5.75% 5/15/07 (MBIA Insured) Aaa $ 3,845 $ 4,244
(e)
6% 5/15/06 (MBIA Insured) (e) Aaa 3,000 3,358
Los Angeles Cmnty. Redv. Aaa 1,780 1,976
Agcy. Tax Allocation
(Hollywood Redev. Proj.)
Series C, 5.5% 7/1/10 (MBIA
Insured)
Los Angeles County Ctfs. of
Prtn.:
(Correctional Facilities)
(Cap. Appreciation):
0% 9/1/10 (MBIA Insured) Aaa 3,770 2,225
(Escrowed to Maturity) (f)
0% 9/1/11 (MBIA Insured) Aaa 6,400 3,578
(Escrowed to Maturity) (f)
(Disney Parking Proj.) (Cap.
Appreciation):
0% 3/1/10 Baa1 2,000 1,177
0% 3/1/11 Baa1 1,950 1,086
0% 3/1/12 Baa1 2,180 1,146
0% 3/1/13 Baa1 6,490 3,204
0% 3/1/18 Baa1 3,000 1,075
0% 3/1/19 Baa1 3,175 1,073
0% 3/1/20 Baa1 1,000 319
Los Angeles County Metro.
Trans. Auth. Sales Tax Rev.:
(Proposition A) 1st Tier Aaa 1,585 1,755
Series A, 5.9% 7/1/14 (MBIA
Insured)
(Proposition C) Second Series
A:
5.9% 7/1/02 (AMBAC Insured) Aaa 1,200 1,288
5.9% 7/1/03 (AMBAC Insured) Aaa 1,655 1,804
5.9% 7/1/04 (AMBAC Insured) Aaa 1,005 1,107
6% 7/1/23 (MBIA Insured) Aaa 20,000 21,946
(Pre-Refunded to 7/1/2002 @
102) (f)
Rfdg. (Proposition A) Series Aaa 3,230 3,439
A, 5.25% 7/1/11 (MBIA
Insured)
Los Angeles County Pub. Works Aa3 6,000 5,992
Fing. Auth. Rev. (Reg'l.
Park & Open Space District)
Series A, 5% 10/1/19
Los Angeles Dept. of Wtr. &
Pwr. Elec. Plant Rev.:
Second Issue:
4.75% 10/15/20 Aa3 1,800 1,729
6.75% 10/15/04 (AMBAC Insured) Aaa 2,400 2,757
9% 10/15/01 Aa3 110 125
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles Dept. of Wtr. &
Pwr. Elec. Plant Rev.: -
continued
Rfdg.:
Second Issue:
4.75% 11/15/19 (MBIA Insured) Aaa $ 4,000 $ 3,867
5.25% 11/15/26 (MBIA Insured) Aaa 17,760 18,078
5.4% 11/15/31 (MBIA Insured) Aaa 4,000 4,105
4.75% 8/15/12 (FGIC Insured) Aaa 6,035 6,101
4.75% 8/15/16 (FGIC Insured) Aaa 2,700 2,656
6.375% 2/1/20 Aa3 1,000 1,082
Los Angeles Dept. of Wtr. &
Pwr. Wtrwks. Rev. Rfdg.:
5.5% 10/15/10 Aa3 2,630 2,897
5.5% 10/15/11 (MBIA Insured) Aa3 3,670 4,009
Los Angeles:
Ctfs. of Prtn. 7.3% 4/1/20 A 3,000 3,157
(California Gen. Oblig.
Guaranteed)
Series A, 5% 9/1/04 Aa2 5,000 5,302
Los Angeles Hbr. Dept. Rev.:
Series B:
5.25% 11/1/10 (e) Aa3 9,105 9,675
5.3% 8/1/06 (e) Aa3 2,000 2,156
7.6% 10/1/18 (Escrowed to AAA 14,810 18,867
Maturity) (f)
Los Angeles Ontario Int'l. Aaa 1,000 1,070
Arpt. Rev. (Los Angeles
Int'l. Arpt.) Series D,
5.625% 5/15/12 (FGIC
Insured) (e)
Los Angeles Unified School
District Series A:
6% 7/1/14 (FGIC Insured) Aaa 1,200 1,379
6% 7/1/15 (FGIC Insured) Aaa 1,000 1,146
Los Angeles Wastewtr. Sys. Aaa 2,485 2,594
Rev. Rfdg. Series B, 5%
6/1/02 (FGIC Insured)
M-S-R Pub. Pwr. Agcy. Rev. Aaa 2,500 3,014
Rfdg. (San Juan Proj.)
Series D, 6.75% 7/1/20 (MBIA
Insured) (Escrowed to
Maturity) (f)
Madera County Ctfs. of Prtn. Aaa 1,480 1,664
(Valley Children's Hosp.)
6.25% 3/15/05 (MBIA Insured)
Manhattan Beach Unified Aaa 975 619
School District (Cap.
Appreciation) Series A, 0%
9/1/09 (FGIC Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Metro. Wtr. District of
Southern California:
Rfdg. Series A:
4.75% 7/1/22 Aa2 $ 10,000 $ 9,632
5.25% 3/1/13 Aaa 2,500 2,642
5.25% 3/1/14 Aaa 4,000 4,196
Series A, 5% 7/1/26 Aa2 5,050 4,999
5.95% 8/5/22 (Pre-Refunded to Aa2 2,600 2,819
2/7/2003 @ 102) (f)
Modesto Irrigation District
Ctfs. of Prtn.:
(Geysers Geothermal Pwr. A1 5,000 4,970
Proj.) Series 1986 A, 5%
10/1/17
(Geysers Geothermal Pwr. Aaa 2,140 1,643
Proj.) (Cap. Appreciation)
Series A, 0% 10/1/05 (MBIA
Insured)
(Rfdg. & Cap. Impts.) (Cap.
Appreciation) Series A:
0% 10/1/08 (MBIA Insured) Aaa 2,270 1,510
(Escrowed to Maturity) (f)
0% 10/1/09 (MBIA Insured) Aaa 2,270 1,430
(Escrowed to Maturity) (f)
0% 10/1/10 (MBIA Insured) Aaa 2,270 1,353
(Escrowed to Maturity) (f)
Modesto Gen. Oblig. Ctfs. of
Prtn.:
(Cmnty. Ctr. Refing. Proj.)
Series A:
5% 11/1/23 (AMBAC Insured) Aaa 2,500 2,511
5.6% 11/1/14 (AMBAC Insured) Aaa 1,370 1,517
(Golf Course Refing. Proj.) Aaa 1,585 1,592
Series B, 5% 11/1/23 (FGIC
Insured)
Modesto Pub. Fing. Auth. Aaa 4,000 4,016
Lease Rev. Rfdg. (Cap.
Impts. & Refing. Proj.)
5.125% 9/1/33 (AMBAC Insured)
Moreno Valley Unified School Aaa 2,350 2,575
District Ctfs. of Prtn.
(Land Acquisition) Series F,
6.7% 9/1/11 (FSA Insured)
(Pre-Refunded to 9/1/2002 @
102) (f)
Northern California Pub. Pwr.
Auth.:
Multiple Cap. Facilities Rev. Aaa 7,600 8,384
6.538% 8/1/25 (MBIA Insured)
(Pre-Refunded to 9/3/2002 @
102) (f)
Pwr. Proj. Rev. Rfdg.:
(Geothermal Proj. #3) Series Aaa 2,250 2,454
A, 5.5% 7/1/05 (AMBAC
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Northern California Pub. Pwr.
Auth.: - continued
Pwr. Proj. Rev. Rfdg.: -
continued
(Hydro Elec. Prroj. # 1) Aaa $ 3,825 $ 5,044
Series A, 7.5% 7/1/23 (AMBAC
Insured) (Pre-Refunded to
7/1/2021 @ 100) (f)
Transmission Proj. Rev. (Ore Aaa 7,100 8,824
Trans. Proj.) Series A, 7%
5/1/13 (MBIA Insured)
Oakland Ctfs. of Prtn. Rfdg. Aaa 2,750 1,958
(Oakland Museum) (Cap.
Appreciation) Series A, 0%
4/1/07 (AMBAC Insured)
Oakland Redev. Agcy. Tax Aaa 1,000 1,007
Allocation (Central District
Redev.) 5% 9/1/21 (MBIA
Insured)
Ontario Redev. Fing. Auth.
Rev.:
(Ctr. City Cimarron Proj. #1)
(Cap. Appreciation):
0% 8/1/08 (MBIA Insured) Aaa 3,255 2,191
0% 8/1/09 (MBIA Insured) Aaa 3,260 2,079
0% 8/1/10 (MBIA Insured) Aaa 3,255 1,966
Rfdg. (Ontario Redev. Proj.
#1):
6.65% 8/1/07 (MBIA Insured) Aaa 1,000 1,182
6.95% 8/1/11 (MBIA Insured) Aaa 1,000 1,244
Orange County Arpt. Rev. Rfdg.:
5.5% 7/1/04 (MBIA Insured) (e) Aaa 2,000 2,155
6% 7/1/07 (MBIA Insured) (e) Aaa 3,135 3,536
Orange County Pub. Fin. Auth.
Waste Mgt. Sys. Rev. Rfdg.:
5.25% 12/1/13 (AMBAC Insured) Aaa 4,000 4,236
(e)
5.75% 12/1/09 (AMBAC Insured) Aaa 1,620 1,815
(e)
5.75% 12/1/11 (AMBAC Insured) Aaa 4,000 4,455
(e)
Orange County Wtr. District Aaa 1,000 1,077
Rfdg. Ctfs. of Prtn. Series
A, 5.5% 8/15/09 (AMBAC
Insured)
Palomar Pomerado Health Sys. Aaa 3,075 2,353
Rev. Rfdg. (Cap.
Appreciation) 0% 11/1/05
(MBIA Insured)
Placer County Wtr. Agcy. Rev. A+ 8,830 8,160
(Middle Fork Proj.) Series
A, 3.75% 7/1/12
Pleasanton Joint Powers Fing.
Auth. Rev. Reassessment
Series A:
5.7% 9/2/01 Baa1 1,155 1,210
5.8% 9/2/02 Baa1 5,005 5,313
6% 9/2/05 Baa1 2,150 2,349
6.15% 9/2/12 Baa1 12,305 13,336
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Port of Oakland Port Rev.:
Rfdg. (Cap. Appreciation)
Series F:
0% 11/1/05 (MBIA Insured) Aaa $ 300 $ 230
0% 11/1/06 (MBIA Insured) Aaa 2,890 2,117
0% 11/1/07 (MBIA Insured) Aaa 4,250 2,965
Series G, 6% 11/1/07 (MBIA Aaa 900 1,019
Insured) (e)
Rancho Wtr. District Fing.
Auth. Rev.:
Rfdg.:
6.5% 11/1/03 (FGIC Insured) Aaa 1,300 1,459
6.5% 11/1/04 (FGIC Insured) Aaa 1,985 2,258
6.427% 8/17/21 (AMBAC Aaa 6,900 7,481
Insured) (Pre-Refunded to
9/11/2001 @ 102) (f)
Redding Elec. Sys. Rev. Rfdg.
Ctfs. of Prtn. (Cap.
Appreciation) Series A:
0% 6/1/06 (FGIC Insured) Aaa 1,730 1,289
0% 6/1/07 (FGIC Insured) Aaa 1,890 1,341
0% 6/1/08 (FGIC Insured) Aaa 1,300 881
Richmond Redev. Agcy. Tax Aaa 105 117
Allocation Hbr. Redev. 7%
7/1/09 (FSA Insured)
Riverside County Asset
Leasing Corp. Leasehold Rev.
(Riverside County Hosp.
Proj.):
Series A:
5.75% 6/1/01 (MBIA Insured) Aaa 1,250 1,313
6.375% 6/1/09 (MBIA Insured) Aaa 5,000 5,564
6.5% 6/1/12 (MBIA Insured) Aaa 18,000 21,579
Series B, 5.7% 6/1/16 (MBIA Aaa 1,950 2,159
Insured)
Riverside County Pub. Fing.
Auth. Tax Allocation Rev.
(Redev. Proj.) Series A:
4.8% 10/1/07 Baa2 1,080 1,093
5% 10/1/08 Baa2 1,135 1,163
5% 10/1/09 Baa2 1,140 1,158
5.1% 10/1/10 Baa2 1,245 1,264
5.25% 10/1/12 Baa2 1,375 1,395
5.5% 10/1/22 Baa2 4,500 4,514
Riverside County Redev. Agcy.
Tax Allocation (Redev. Proj.
#4) Series A:
7.5% 10/1/10 (Pre-Refunded to BBB 1,000 1,120
10/1/2001 @ 102) (f)
7.5% 10/1/26 (Pre-Refunded to BBB 2,500 2,800
10/1/2001 @ 102) (f)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Riverside Unified School Aaa $ 5,485 $ 6,117
District Ctfs. of Prtn.
(Land Acquisition Proj.)
Series B, 7.375% 9/1/26 (FSA
Insured) (Pre-Refunded to
9/1/2001 @ 102) (f)
Roseville Joint Union High Aaa 1,060 1,014
School District (Cap.
Appreciation) Series B, 0%
8/1/00 (FGIC Insured)
Sacramento City Fing. Auth. Aaa 2,000 2,135
Lease Rev. Rfdg. Series A,
5.4% 11/1/20 (AMBAC Insured)
Sacramento Cogeneration Pwr.
Auth. Cogeneration Proj. Rev.:
(Procter & Gamble Proj.):
5.7% 7/1/00 BBB- 1,200 1,237
5.9% 7/1/02 BBB- 1,000 1,065
6% 7/1/03 BBB- 700 757
6.375% 7/1/10 BBB- 700 770
6.5% 7/1/21 (Pre-Refunded to BBB- 3,200 3,722
7/1/2005 @ 102) (f)
6% 7/1/22 BBB- 2,700 2,879
6.5% 7/1/06 BBB- 4,500 5,111
6.5% 7/1/07 BBB- 2,000 2,280
6.5% 7/1/08 BBB- 1,000 1,133
Sacramento County Rfdg. Ctfs.
of Prtn. (Pub. Facilities
Proj.):
4.8% 10/1/10 (AMBAC Insured) Aaa 1,000 1,035
5% 10/1/11 (AMBAC Insured) Aaa 1,625 1,693
Sacramento Muni. Util.
District Elec. Rev.:
Rfdg (MBIA Insured) Series L, Aaa 4,000 4,022
5.125% 7/1/22 (MBIA Insured)
5.45% 11/15/08 (FGIC Insured) Aaa 17,700 19,100
San Bernardino County:
(Med. Ctr. Fing. Proj.) 5.5% Aaa 2,500 2,735
8/1/06 (MBIA Insured)
Ctfs. of Prtn (Cap. AAA 7,500 9,501
Facilities Proj.) Series B,
6.875% 8/1/24 (Escrowed to
Maturity) (f)
Ctfs. of Prtn. (Med. Ctr. Aaa 2,750 2,994
Fing. Proj.) 5.5% 8/1/05
(MBIA Insured)
Rfdg. Ctfs. of Prtn. (Med.
Ctr. Fing. Proj.):
5.25% 8/1/04 A3 915 962
5.5% 8/1/22 A3 10,000 10,363
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Diego County Ctfs. of Aaa $ 1,670 $ 1,805
Prtn. (Sharp Healthcare)
5.25% 8/15/09 (MBIA Insured)
San Diego County Reg'l.
Trans. Commission Sales Tax
Rev. Series A:
6% 4/1/04 (FGIC Insured) Aaa 5,900 6,501
6.25% 4/1/03 (FGIC Insured) Aaa 8,000 8,787
San Diego County Wtr. Auth. Aaa 5,000 5,448
Wtr. Rev. Ctfs. of Prtn.
5.632% 4/25/07 (FGIC Insured)
San Diego Multi-Family Hsg. AAA 1,585 1,588
Rev. (Island Gardens Apts.
Proj.) Series B, 9.5%
10/20/20, LOC Govt. Nat'l.
Mortgage Assoc.
San Diego Pub. Facilities Aaa 1,000 1,047
Fing. Auth. Swr. Rev. Series
B, 5.375% 5/15/15 (FGIC
Insured)
San Francisco Bay Area Rapid
Trans. District Sales Tax
Rev. Rfdg.:
5% 7/1/28 (AMBAC Insured) Aaa 24,650 24,505
5.25% 7/1/12 Aa3 8,920 9,486
5.25% 7/1/14 Aa3 5,110 5,355
5.25% 7/1/18 Aa3 4,500 4,618
San Francisco Bldg. Auth. A1 2,640 2,802
Lease Rev. (Dept. Gen. Svcs.
Lease) Series A, 5% 10/1/08
San Francisco City & County:
(SFO Fuel Co. LLC) Series A:
5.125% 1/1/17 (AMBAC Insured) Aaa 6,000 6,064
(e)
5.25% 1/1/18 (AMBAC Insured) Aaa 4,515 4,591
(e)
5.25% 1/1/19 (AMBAC Insured) Aaa 4,750 4,822
(e)
Issue 16A 5.375% 5/1/18 (FSA Aaa 5,035 5,175
Insured) (e)
Issue 18A:
5.25% 5/1/11 (MBIA Insured) Aaa 3,280 3,486
(e)
6% 5/1/05 (MBIA Insured) (e) Aaa 2,375 2,636
Rfdg. Second Series Issue 1:
6.2% 5/1/05 (AMBAC Insured) Aaa 1,380 1,507
6.2% 5/1/05 (AMBAC Insured) Aaa 920 1,013
(Pre-Refunded to 5/1/2002 @
102) (f)
Second Series Issue 10A, 5.3% Aaa 3,680 3,959
5/1/06 (MBIA Insured) (e)
Second Series Issue 15A, 5.6% Aaa 4,295 4,543
5/1/02 (FSA Insured) (e)
Second Series Issue 22, 5% Aaa 2,605 2,746
5/1/09 (AMBAC Insured) (e)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County:
- - continued
Series 2, 5.125% 5/1/07 (FGIC Aaa $ 2,000 $ 2,117
Insured) (e)
San Francisco City & County A1 1,000 1,106
Pub. Util. Commission Wtr.
Rev. Rfdg. Series A, 6.5%
11/1/09
San Francisco City & County
Redev. Fing. Auth. Tax
Allocation Rev.:
(Cap. Appreciation) Series A:
0% 8/1/08 (FGIC Insured) Aaa 1,085 730
0% 8/1/09 (FGIC Insured) Aaa 1,085 692
0% 8/1/10 (FGIC Insured) Aaa 1,085 655
Rfdg. (San Francisco Redev. Aaa 1,475 891
Proj.) (Cap. Appreciation)
Series B, 0% 8/1/10 (MBIA
Insured)
San Francisco City & County
Swr. Rev.:
(Cap. Appreciation) Series B:
0% 10/1/06 (FGIC Insured) Aaa 3,690 2,712
0% 10/1/07 (FGIC Insured) Aaa 4,770 3,339
0% 10/1/08 (FGIC Insured) Aaa 1,600 1,070
Rfdg. 5.9% 10/1/08 (AMBAC Aaa 5,000 5,444
Insured)
San Joaquin County Ctfs. of
Prtn. (Gen. Hosp. Proj.):
5.7% 9/1/01 A3 2,250 2,354
5.8% 9/1/02 A3 450 478
6.25% 9/1/13 A3 2,500 2,679
6.625% 9/1/20 A3 2,500 2,711
San Jose Arpt. Rev. Rfdg. Aaa 1,905 2,134
5.875% 3/1/07 (FGIC Insured)
San Jose Redev. Agcy. Tax Aaa 3,000 3,450
Allocation Rfdg. (Merged
Area Redev. Proj.) 6% 8/1/15
(MBIA Insured)
Santa Clara County Fing.
Auth. Lease Rev. (VMC
Replacement Proj.) Series A:
7.75% 11/15/08 (AMBAC Insured) Aaa 1,175 1,508
7.75% 11/15/09 (AMBAC Insured) Aaa 3,725 4,824
Santa Clara County Tran. AA 8,500 8,610
District Sales Tax Rev.
Rfdg. Series A, 5.25% 6/1/21
Santa Margarita/Dana Point
Auth. Rev. Rfdg. (Impt.
Dists. 1&2 - 2A&8) Series A:
7.25% 8/1/06 (MBIA Insured) Aaa 1,500 1,808
7.25% 8/1/07 (MBIA Insured) Aaa 2,200 2,686
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Santa Margarita/Dana Point
Auth. Rev. Rfdg. (Impt.
Dists. 1&2 - 2A&8) Series A:
- - continued
7.25% 8/1/08 (MBIA Insured) Aaa $ 1,780 $ 2,212
7.25% 8/1/12 (MBIA Insured) Aaa 1,865 2,390
South Orange County Pub.
Fing. Auth. Spl. Tax Rev.:
(Foothill Area) Series C:
7.5% 8/15/06 (FGIC Insured) Aaa 2,000 2,445
7.5% 8/15/07 (FGIC Insured) Aaa 2,290 2,838
8% 8/15/09 (FGIC Insured) Aaa 3,650 4,783
Rfdg. Series A, 7% 9/1/10 Aaa 3,300 4,084
(MBIA Insured)
Southern California Pub. Pwr.
Auth.:
Pwr. Proj. Rev. (Multi Projs.):
6.75% 7/1/10 (Pittsburgh A 1,400 1,691
Nat'l. Bank Guaranteed)
6.75% 7/1/11 (Pittsburgh A 6,500 7,898
Nat'l. Bank Guaranteed)
Pwr. Proj. Rev. Rfdg.:
(Mead Adelanto Proj.) Series Aaa 2,000 1,967
A, 4.75% 7/1/16 (AMBAC
Insured)
(Palo Verde Proj.) Series A, Aaa 14,645 15,441
5% 7/1/03 (FSA Insured) (c)
Series A:
5% 7/1/15 (AMBAC Insured) Aaa 1,800 1,804
(Escrowed to Maturity) (f)
7% 7/1/05 (AMBAC Insured) A 2,300 2,449
Transmission Proj. Rev. Rfdg.:
Series A, 6% 7/1/06 (MBIA Aaa 2,000 2,256
Insured)
5.5% 7/1/20 Aa3 1,000 1,025
6.75% 7/1/01 A 2,000 2,126
Stanislaus County Rfdg. Ctfs. Aaa 1,500 1,561
of Prtn. (Cap. Impt. Prog.)
Series A, 5.25% 5/1/14 (MBIA
Insured)
Sulpher Springs Union School
District:
(Cap. Appreciation) Series A:
0% 9/1/08 (MBIA Insured) Aaa 4,745 3,183
0% 9/1/09 (MBIA Insured) Aaa 2,485 1,579
0% 9/1/12 (MBIA Insured) Aaa 2,750 1,474
Series A, 0% 9/1/07 (MBIA Aaa 4,445 3,122
Insured)
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Tahoe-Truckee Joint Unified Aaa $ 6,625 $ 3,986
School District (Cap.
Appreciation) Series A, 0%
9/1/10 (FGIC Insured)
Univ. of California Gen.
Oblig.:
(Multiple Purp. Proj.) Series
D:
6% 9/1/08 (MBIA Insured) Aaa 2,515 2,769
(Pre-Refunded to 9/1/2002 @
102) (f)
6.25% 9/1/12 (MBIA Insured) Aaa 3,855 4,276
(Pre-Refunded to 9/1/2002 @
102) (f)
6.375% 9/1/19 (MBIA Insured) Aaa 16,300 18,146
(Pre-Refunded to 9/1/2002 @
102) (f)
6.375% 9/1/24 (MBIA Insured) Aaa 6,000 6,680
(Pre-Refunded to 9/1/2002 @
102) (f)
Rfdg. (Multiple Purp. Proj.) Aaa 100 117
Series C, 9% 9/1/02 (AMBAC
Insured)
Upland Rfdg. Ctfs. of Prtn.
(San Antonio Cmnty. Hosp.):
5.25% 1/1/08 A 3,700 3,824
5.25% 1/1/13 A 8,500 8,552
West Covina Ctfs. of Prtn.
(Queen of The Valley Hosp.):
5.9% 8/15/02 (Escrowed to A2 875 943
Maturity) (f)
6% 8/15/03 (Escrowed to A2 925 1,016
Maturity) (f)
6.125% 8/15/04 (Escrowed to A2 980 1,096
Maturity) (f)
1,294,309
PUERTO RICO - 2.8%
Puerto Rico Commonwealth Gen.
Oblig.:
(Pub. Impt.):
Series B, 5.5% 7/1/02 (AMBAC Aaa 7,860 8,329
Insured)
5% 7/1/00 Baa1 7,015 7,171
5% 7/1/01 Baa1 4,000 4,129
5% 7/1/02 Baa1 3,305 3,434
Rfdg. 5.5% 7/1/11 Baa1 5,675 6,223
Puerto Rico Muni. Fin. Agcy.:
Rfdg. Series B, 5.5% 7/1/02 Aaa 5,105 5,401
(FSA Insured)
Series A, 5.5% 7/1/02 (FSA Aaa 2,845 3,010
Insured)
37,697
TOTAL MUNICIPAL BONDS 1,332,006
(Cost $1,247,641)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL NOTES - 2.4%
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 2.4%
California Econ. Dev. Fin.
Auth. Ind. Dev. Rev.:
(California ISO Corp. Proj.) $ 1,100 $ 1,100
Series 1998 B, 3%, LOC Bank
of America Nat'l. Trust &
Savings Assoc., VRDN (d)
(Mercury Air Group Proj.) 3,000 3,000
2.65%, LOC BankBoston NA,
VRDN (d)(e)
California Poll. Cont. Fing.
Auth. Rev.:
(Pacific Gas & Elec. Co.):
Series 1996 F, 3.1%, LOC 3,500 3,500
Banque Nationale de Paris,
VRDN (d)
Series 1996 G, 3.1%, VRDN (d) 5,300 5,300
Series 1997 B, 3.15%, LOC 11,900 11,900
Deutsche Bank AG, VRDN (d)(e)
(Southern California Edison):
Series B, 3.55%, VRDN (d) 1,000 1,000
Series C, 3.55%, VRDN (d) 400 400
Solid Waste Disp. Rev. (Shell
Martinez Refining Co. Proj.):
Series 1994 B, 3.1%, VRDN 1,600 1,600
(d)(e)
Series 1996 A, 3%, VRDN (d)(e) 1,200 1,200
Series 1996 B, 3.1%, VRDN 1,600 1,600
(d)(e)
Orange County Irvine Coast 2,800 2,800
Assessment District #88-1
3.1%, LOC Societe Generale,
France, LOC Kredietbank NV,
VRDN (d)
TOTAL MUNICIPAL NOTES 33,400
(Cost $33,400)
TOTAL INVESTMENT IN $ 1,365,406
SECURITIES - 100%
(Cost $1,281,041)
</TABLE>
SECURITY TYPE ABBREVIATION
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(b) Debt obligation initially issued in zero coupon form which
converts to coupon form at a specified rate and date. The rate shown
is the rate at period end.
(c) Security purchased on a delayed delivery or when-issued basis.
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(f) Security collateralized by an amount sufficient to pay interest
and principal.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 79.9% AAA, AA, A 86.3%
Baa 7.8% BBB 6.1%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 0.2%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investments in securities, is as follows:
General Obligations 22.4%
Escrowed/Pre-Refunded 13.6
Electric Utilities 12.6
Transportation 11.4
Special Tax 10.0
Water & Sewer 8.2
Health Care 7.3
Lease Revenue 6.4
Education 5.7
Others (individually less 2.4
than 5%)
TOTAL 100.0%
INCOME TAX INFORMATION
At February 28, 1999, the aggregate cost of investment securities for
income tax purposes was $1,281,042,000. Net unrealized appreciation
aggregated $84,364,000, of which $85,110,000 related to appreciated
investment securities and $746,000 related to depreciated investment
securities.
The fund hereby designates approximately $11,818,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
At February 28, 1999 the fund was required to defer approximately
$5,014,000 of losses on futures contracts.
During the fiscal year ended February 28, 1999, 100% of the fund's
income dividends was free from federal income tax and 8.68% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN CALIFORNIA MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) FEBRUARY
28, 1999
ASSETS
Investment in securities, at $ 1,365,406
value (cost $1,281,041) -
See accompanying schedule
Cash 63
Receivable for investments 518
sold
Receivable for fund shares 3,384
sold
Interest receivable 17,961
Other receivables 51
TOTAL ASSETS 1,387,383
LIABILITIES
Payable for investments $ 10,612
purchased Regular delivery
Delayed delivery 14,980
Payable for fund shares 1,154
redeemed
Distributions payable 1,258
Accrued management fee 431
Other payables and accrued 198
expenses
TOTAL LIABILITIES 28,633
NET ASSETS $ 1,358,750
Net Assets consist of:
Paid in capital $ 1,274,766
Accumulated undistributed net (381)
realized gain (loss) on
investments
Net unrealized appreciation 84,365
(depreciation) on investments
NET ASSETS, for 109,502 $ 1,358,750
shares outstanding
NET ASSET VALUE, offering $12.41
price and redemption price
per share ($1,358,750
(divided by) 109,502 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED FEBRUARY 28, 1999
INTEREST INCOME $ 65,462
EXPENSES
Management fee $ 4,914
Transfer agent fees 1,117
Accounting fees and expenses 360
Non-interested trustees' 4
compensation
Custodian fees and expenses 70
Registration fees 196
Audit 32
Legal 8
Interest 1
Miscellaneous 13
Total expenses before 6,715
reductions
Expense reductions (29) 6,686
NET INTEREST INCOME 58,776
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 15,200
Futures contracts (47) 15,153
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 899
Futures contracts (13) 886
NET GAIN (LOSS) 16,039
NET INCREASE (DECREASE) IN $ 74,815
NET ASSETS RESULTING FROM
OPERATIONS
OTHER INFORMATION
Expense reductions: Custodian $ 14
credits
Transfer agent credits 15
$ 29
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 28, 1999 YEAR ENDED FEBRUARY 28, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 58,776 $ 42,098
Net realized gain (loss) 15,153 17,182
Change in net unrealized 886 23,703
appreciation (depreciation)
NET INCREASE (DECREASE) IN 74,815 82,983
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (58,776) (42,098)
From net interest income
From net realized gain (10,872) -
TOTAL DISTRIBUTIONS (69,648) (42,098)
Share transactions - Net 115,182 711,618
increase (decrease) (Note 7)
TOTAL INCREASE (DECREASE) 120,349 752,503
IN NET ASSETS
NET ASSETS
Beginning of period 1,238,401 485,898
End of period $ 1,358,750 $ 1,238,401
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 12.360 $ 11.810 $ 11.720 $ 11.120 $ 12.100
of period
Income from Investment .569 .589 .599 .625 .685
Operations Net interest
income
Net realized and unrealized .154 .550 .096 .597 (.830)
gain (loss)
Total from investment .723 1.139 .695 1.222 (.145)
operations
Less Distributions
From net interest income (.569) (.589) (.602) (.622) (.685)
From net realized gain (.104) - (.003) - (.150)
Total distributions (.673) (.589) (.605) (.622) (.835)
Net asset value, end of period $ 12.410 $ 12.360 $ 11.810 $ 11.720 $ 11.120
TOTAL RETURN A 6.00% 9.89% 6.16% 11.25% (.91)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,359 $ 1,238 $ 486 $ 498 $ 477
(in millions)
Ratio of expenses to average .52% .54% B .57% .58% .56%
net assets
Ratio of expenses to average .52% .53% C .57% .58% .56%
net assets after expense
reductions
Ratio of net interest income 4.59% 4.85% 5.19% 5.44% 6.16%
to average net assets
Portfolio turnover rate 34% 37% D 17% 37% 29%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
D THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGER.
E FOR THE YEAR ENDED FEBRUARY 29.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance. If Fidelity had not reimbursed
certain fund expenses, the past five year and life of fund total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
1999
SPARTAN CA MUNICIPAL MONEY 2.84% 16.93% 38.03%
MARKET
California Tax-Free Money 2.65% 15.37% n/a
Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or since
the fund started on November 27, 1989. For example, if you had
invested $1,000 in a fund that had a 5% return over the past year, the
value of your investment would be $1,050. To measure how the fund's
performance stacked up against its peers, you can compare it to the
California tax-free money market funds average, which reflects the
performance of California tax-free money market funds with similar
objectives tracked by IBC Financial Data, Inc. The past one year
average represents a peer group of 54 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
1999
SPARTAN CA MUNICIPAL MONEY 2.84% 3.18% 3.54%
MARKET
California Tax-Free Money 2.65% 2.90% n/a
Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
3/1/99 11/30/98 8/31/98 6/1/98 3/2/98
Spartan California Municipal 2.42% 2.68% 2.61% 3.30% 2.95%
Money Market
California Tax-Free Money 2.17% 2.45% 2.42% 3.07% 2.73%
Market Funds Average
Spartan California Municipal 4.08% 4.56% 4.49% 5.68% 5.08%
Money Market - Tax-equivalent
Portion of fund's income 20.62% 11.92% 1.21% 0.00% 0.00%
subject to state taxes
Spartan California
Municipal Money
Market
California Tax-Free
Money Market
Funds Average
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 2.42
Row: 1, Col: 2, Value: 2.17
Row: 2, Col: 1, Value: 2.68
Row: 2, Col: 2, Value: 2.45
Row: 3, Col: 1, Value: 2.61
Row: 3, Col: 2, Value: 2.42
Row: 4, Col: 1, Value: 3.3
Row: 4, Col: 2, Value: 3.07
Row: 5, Col: 1, Value: 2.95
Row: 5, Col: 2, Value: 2.73
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
table above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
California tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1999 federal and state
income tax rate of 41.95% and reflects that a portion of the fund's
income was subject to state taxes. A portion of the fund's income may
be subject to the federal alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
(checkmark)COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight comparison
between the two may be
misleading because it ignores
the way taxes reduce taxable
returns. Tax-equivalent yield -
the yield you'd have to earn on
a similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Diane McLaughlin)
An interview with Diane McLaughlin, Portfolio Manager of Spartan
California Municipal Money Market Fund
Q. DIANE, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PERIOD?
A. The U.S. economy was very strong in 1998. Growth in real GDP -
gross domestic product adjusted for inflation - approached 4% over the
course of the year, expanding at an annual rate of 6.1% in the fourth
quarter. Employment was also quite robust, with the unemployment rate
averaging only 4.5% in 1998. Economic conditions like these are
usually accompanied by inflation. Wages started to creep upward as
employers increased pay to attract or retain workers. But consumers
didn't have to pay higher prices as the CPI (consumer price index)
hovered at a tame rate of 1.6% for the year. The strength of the
economy beat expectations; most market observers felt global economic
and financial crises would hurt growth in the U.S. much more than they
did. While the manufacturing sector experienced a downturn - with
exports from the U.S. suffering from increased competition - it
rebounded recently and its weakness was more than offset by solid
domestic demand. Robust consumer activity - especially in the holiday
shopping season - sustained growth through the end of 1998 and the
beginning of 1999.
Q. HOW DID THIS BACKDROP AFFECT FEDERAL RESERVE BOARD MONETARY POLICY?
A. Despite this economic strength, the expectation of an eventual
slowdown prompted the Fed to lower the rate banks charge each other
for overnight loans - known as the fed funds target rate - by 0.25
percentage points in late September. The Fed followed with a second
rate cut in October, responding to financial instability in the
markets, the near-collapse of a highly leveraged hedge fund and
increased aversion to risk by investors in the market. The Fed
implemented an additional cut in November, citing the presence of
downside risks in global financial markets.
Q. WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
A. The fund's average maturity at the beginning of the 12-month period
stood at 44 days, and peaked at 50 days in mid-July. I extended the
fund's maturity through the summer months by buying fixed-rate,
one-year notes. There were two main reasons behind these purchases.
First, most California issuers bring their one-year municipal
securities to market in late June and early July; the additional
supply typically drives yields on these securities higher. In
addition, it made sense to lock in attractive one-year yields since it
became clear the Fed was going to make a move to cut short-term
interest rates. Since reaching its July peak, the average maturity has
since rolled back down to 44 days at the end of the period. In
addition, I turned some of my focus - within the limits set by the
fund's prospectus - to out-of-state investment opportunities that
offered more appealing after-tax yields than tax-free alternatives in
the California market. Even though more of shareholders' income will
be taxable at the state level this year because of the out-of-state
investments, I pursued this strategy so the fund could provide higher
yields on a tax-adjusted basis than if I had chosen to invest the same
assets in lower-yielding tax-exempt California securities.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 28, 1999, was 2.41%,
compared to 2.91% 12 months ago. The latest yield was the equivalent
of a 4.07% taxable yield for California investors in the 41.95%
combined state and federal tax bracket, and reflects that a portion of
the fund's income was subject to state taxes. Through February 28,
1999, the fund's 12-month total return was 2.84%, compared to 2.65%
for the California tax-free money market funds average, according to
IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. In the minutes from its Open Market Committee meeting in November,
the Fed indicated that its decision to implement the latest
interest-rate cut was a tough one given continued economic strength in
the U.S. At the same meeting, the Fed shifted from a bias toward
lowering rates to a neutral stance, and has kept rates unchanged at
its subsequent meetings. Going forward, the Fed might reverse course
and increase rates if continued strength in the economy is finally
reflected in higher prices. On the other hand, there is still a risk
that outside factors might threaten U.S. economic growth and encourage
the Fed to ease credit by lowering rates once again. Given the
uncertainty about the future course of interest rates, I'll seek to
maintain a flexible, neutral positioning with the fund's average
maturity.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: high level of current
income, exempt from federal
income tax and California
state personal income tax,
as is consistent with the
preservation of capital
FUND NUMBER: 457
TRADING SYMBOL: FSPXX
START DATE: November 27,
1989
SIZE: as of February 28,
1999, more than $1.2
billion
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in
1992
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 2/28/99 % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
8/31/98 2/28/98
0 - 30 73 72 65
31 - 90 4 17 15
91 - 180 15 2 14
181 - 397 8 9 6
WEIGHTED AVERAGE MATURITY
2/28/99 8/31/98 2/28/98
Spartan California Municipal 44 Days 41 Days 44 Days
Money Market Fund
California Tax Free Money 40 Days 43 Days 40 Days
Market Funds Average *
</TABLE>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF FEBRUARY 28, 1999
Variable rate demand
notes (VRDNs) 46%
Commercial paper
(including CP mode) 11%
Tender bonds 1%
Municipal notes 20%
Municipal Money
Market Funds 21%
Other 1%
Row: 1, Col: 1, Value: 46.0
Row: 1, Col: 2, Value: 11.0
Row: 1, Col: 3, Value: 1.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 21.0
Row: 1, Col: 6, Value: 1.0
AS OF AUGUST 31, 1998
Row: 1, Col: 1, Value: 63.0
Row: 1, Col: 2, Value: 20.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 1.0
Variable rate demand
notes (VRDNs) 63%
Commercial paper
(including CP mode) 20%
Tender bonds 3%
Municipal notes 13%
Municipal Money
Market Funds 0%
Other 1%
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.0%
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 76.9%
Alameda County Ind. Dev.
Auth. Rev.:
(Edward L. Shimmon, Inc. $ 2,900 $ 2,900
Proj.) Series 1996 A, 2.8%,
LOC Banque Nationale de
Paris, VRDN (a)(d)
(Meskimen Family Trust Proj.) 5,200 5,200
Series 1998 A, 2.8%, VRDN
(a)(d)
Series 1998 A, 2.6%, LOC 4,000 4,000
Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
Alameda County Multi-family 3,600 3,600
Hsg. Rev. (Berkeley Proj.)
Series 1998 A, 2.8%, LOC
Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
Barstow Multi-family Hsg. 4,650 4,650
Rev. (Rimrock Village Apt.
Proj.) Series 1996, 2.65%,
LOC Fed. Home Ln. Bank
Indianapolis, VRDN (a)(d)
Butte County Office of Ed. 8,300 8,342
TRAN 4% 10/15/99
California Econ. Dev. Fin.
Auth. Ind. Dev. Rev.:
(Calco, LLC Proj.) Series 1,100 1,100
1997, 3.05%, LOC Wells Fargo
Bank NA, San Francisco, VRDN
(a)(d)
(Joseph Schmidt Proj.) Series 2,000 2,000
A, 2.8%, LOC Banque
Nationale de Paris, VRDN
(a)(d)
(Kuhnash Properties III, 1,500 1,500
LLC/Arkay Plastics, LLC
Proj.) Series 1997, 2.85%,
LOC PNC Bank NA, VRDN (a)(d)
California Edl. Facilities
Auth. Rev.:
Participating VRDN Series 6,885 6,885
FR/RI 37, 3% (AMBAC
Guaranteed) (Liquidity
Facility Bank of New York
NA) (a)(d)(e)
(Foundation for Edl. 2,500 2,500
Achievement) Series 1996 A,
2.6%, LOC Banque Nationale
de Paris, VRDN (a)
California Gen. Oblig.:
Participating VRDN:
Series 1996 L, 2.75% 16,775 16,775
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(e)
Series PA 237, 2.75% 6,925 6,925
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series SG 84, 2.75% 2,735 2,735
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SG 85, 2.75% 10,500 10,500
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGA 58, 2.85% 1,300 1,300
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 15, 2.87% 5,875 5,875
(Liquidity Facility Societe
Generale, France) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: -
continued
Dept. of Veterans Affairs:
Bonds Series BJ, 4.125%, $ 6,800 $ 6,800
tender 6/1/99 (d)
Participating VRDN:
Series FR/RI A17, 3% 18,560 18,560
(Liquidity Facility Nat'l.
Westminster Bank PLC)
(a)(d)(e)
Series PA 315, 2.77% 3,270 3,270
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
RAN 4% 6/30/99 52,000 52,159
Rfdg.:
3.5% 10/1/99 12,130 12,168
Participating VRDN:
Series 55, 2.84% (Liquidity 13,200 13,200
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Series MS 98-8, 2.84% 13,275 13,275
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series SGB 7, 2.87% 2,100 2,100
(Liquidity Facility Societe
Generale, France) (a)(e)
2.9% 3/5/99, CP 19,300 19,300
2.9% 3/8/99, CP 12,500 12,500
6% 11/1/99 1,000 1,018
California Health Facilities
Fing. Auth. Rev.:
Participating VRDN Series PA 2,400 2,400
438, 2.75% (Liquidity
Facility Merrill Lynch &
Co.) (a)(e)
(Catholic Healthcare West) 1,440 1,446
4.5% 7/1/99
(Southern California 3,200 3,200
Presbeterian Proj.) Series
1998, 2.7% (MBIA Insured),
VRDN (a)
California Hsg. Fin. Agcy.
Rev.:
Bonds Series 1998 E, 3.55%, 2,170 2,170
tender 3/12/99 (d)
Participating VRDN:
Series 1994-1, 3.07% 6,524 6,524
(Liquidity Facility State
Street Bank & Trust Co.)
(a)(d)(e)
Series 1996 C1, 3.02% 1,925 1,925
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(d)(e)
Series 1996 C2, 3.02% 4,075 4,075
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(d)(e)
Series 96C0505, 2.87% 2,665 2,665
(Liquidity Facility
Citibank, New York NA)
(a)(d)(e)
Series PA 112, 2.77% 1,980 1,980
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy.
Rev.: - continued
Participating VRDN:
Series PA 90, 2.77% $ 2,030 $ 2,030
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PT 14, 2.72% 3,060 3,060
(Liquidity Facility
Commerzbank AG) (a)(e)
Series PT 40A, 2.77% 1,300 1,300
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 40B, 2.77% 13,305 13,305
(Liquidity Facility
Bayerische Hypotheken-und
Wechselbank AG) (a)(d)(e)
Series PT 40D, 2.77% 8,300 8,300
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PT 56, 2.77% 480 480
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PT 68, 2.77% 3,420 3,420
(Liquidity Facility Cr.
Suisse First Boston, Inc.)
(a)(d)(e)
California Poll. Cont. Fing.
Auth. Rev.:
Bonds (Pacific Gas & Elec. 3,200 3,200
Co.) Series 1996 E, 2.5%
3/10/99, LOC Morgan Guaranty
Trust Co., NY, CP mode
(Pacific Gas & Elec. Co.) 5,000 5,000
Series 1997 B, 3.15%, LOC
Deutsche Bank AG, VRDN (a)(d)
Resource Recovery (Atlantic 13,800 13,800
Richfield Co.) Series 1994
A, 3.2%, VRDN (a)(d)
California School Cash 42,500 42,617
Reserve Prog. Auth. TRAN
Series A, 4.5% 7/2/99 (AMBAC
Insured)
California Statewide Cmnty.
Dev. Auth. Rev.:
(American River Packaging) 1,725 1,725
2.7%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Bro-Co. Gen. Partnership 3,400 3,400
Proj.) Series 1990, 2.65%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Carvin Corp. Proj.) 2.65%, 2,230 2,230
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Covenant Retirement Cmnty., 7,600 7,600
Inc.) Series 1995, 2.75%,
LOC LaSalle Nat'l. Bank,
Chicago, VRDN (a)
(Covenant Retirement Cmnty., 7,700 7,700
Inc) 2.75%, LOC LaSalle
Nat'l. Bank, Chicago, VRDN
(a)
(Duke, Inc. Proj.) Series 1,320 1,320
1996 E, 2.7%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Fibrebond West, Inc. Proj.) 2,275 2,275
Series 1996 N, 2.65%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Grundfos Pumps Corp. Proj.) 6,000 6,000
Series 1989, 2.65%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Statewide Cmnty.
Dev. Auth. Rev.: - continued
(JDI Partners Proj.) 2.65%, $ 1,300 $ 1,300
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Lynwood Enterprises LLC 2,000 2,000
Proj.) Series 1997 D, 2.7%,
LOC Fleet Nat'l. Bank, VRDN
(a)(d)
(Northwest Pipe & Casing Co. 3,000 3,000
Proj.) Series 1990, 2.65%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Pasco Scientific Proj.) 2,295 2,295
2.65%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Peets Cofffee & Tea, Inc.) 1,920 1,920
Series 1995, 2.65%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Propak-Ca. Corp. Proj.) 2,020 2,020
Series 1994 B, 2.65%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Rapelli of California, Inc. 2,500 2,500
Proj.) 2.65%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Rix Ind. Proj.) Series 1996 1,800 1,800
I, 2.7%, LOC Wells Fargo
Bank NA, San Francisco, VRDN
(a)(d)
(Setton Properties, Inc. 760 760
Proj.) Series 1995 E, 2.7%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Sunclipse, Inc., Alhambra 3,200 3,200
Proj.) Series 1989, 2.65%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
(Sunclipse, Inc., Union City 2,135 2,135
Proj.) Series 1989, 2.65%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
Ctfs. of Prtn. (Northern 1,570 1,570
California Retired Officers
Cmnty.) 3.05%, LOC Dresdner
Bank AG, VRDN (a)
Chula Vista Ind. Dev. Rev.
Bonds (San Diego Gas & Elec.
Co.):
Series C:
2.75% 4/8/99, CP mode (d) 5,000 5,000
2.75% 4/8/99, CP mode (d) 6,000 6,000
Series D, 2.45% 3/1/99, CP 6,500 6,500
mode (d)
Series E, 2.45% 3/4/99, CP 2,500 2,500
mode (d)
Clovis Unified School 6,000 6,005
District TRAN 4% 6/30/99
Desert Sands Unified School 2,600 2,609
District TRAN 4% 7/9/99
Fairfield Ind. Dev. Auth.:
(Meyer Cookward Ind. Proj.) 4,400 4,400
2.8%, LOC Banque Nationale
de Paris, VRDN (a)(d)
2.75%, LOC Wells Fargo Bank 1,800 1,800
NA, San Francisco, VRDN
(a)(d)
Garden Grove Hsg. Auth. 6,200 6,200
Multi-family Rev. (Valley
View Senior Villas Proj.)
Series 1990 A, 2.75%, LOC
Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Huntington Beach Gen. Oblig. $ 9,800 $ 9,847
TRAN 4% 9/30/99
Huntington Beach Multi-family 4,400 4,400
Hsg. Rev. Bond (Five Point
Seniors Proj.) Series 1991
A, 2.85%, LOC Wells Fargo
Bank NA, San Francisco, VRDN
(a)(d)
Huntington Park Multi-family 4,200 4,200
Hsg. Rev. (Casa Rita Apts.)
Series 1994 A, 2.65%, LOC
Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
Lassen Muni. Util. District 5,755 5,755
Rev. Rfdg. Series 1996 A, 3%
(FSA Insured) (BPA Cr. Local
de France), VRDN (a)(d)
LaVerne Ind. Dev. Auth. 5,195 5,195
(Paper-Pak Products, Inc.
Proj.) 3.1%, LOC Nationsbank
of Texas, LOC NationsBank
NA, VRDN (a)(d)
Long Beach Hbr. Rev.:
Participating VRDN Series SG 5,880 5,880
73, 2.77% (Liquidity
Facility Societe Generale,
France) (a)(d)(e)
Series A:
2.25% 3/9/99, CP (d) 1,000 1,000
2.5% 4/7/99, CP (d) 4,900 4,900
Los Angeles County Cap. Asset
Leasing Corp.:
TRAN Series 1998-1999 A, 4.5% 18,025 18,098
6/30/99
2.75% 3/24/99, LOC 6,000 6,000
Westdeutsche Landesbank
Girozentrale, LOC Bayerische
Landesbank Girozentrale, CP
Los Angeles County Metro.
Trans. Auth. Rev.:
Participating VRDN:
Series SG 2, 2.87% (Liquidity 12,700 12,700
Facility Societe Generale,
France) (a)(e)
Series SG 3, 2.87% (Liquidity 10,570 10,570
Facility Societe Generale,
France) (a)(e)
Series SG 46, 2.75% 3,600 3,600
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SG 54, 2.75% 1,500 1,500
(Liquidity Facility Societe
Generale, France) (a)(e)
Series A:
2.7% 3/9/99, LOC Bayerische 3,850 3,850
Hypo-und Vereinsbank AG, LOC
Canadian Imperial Bank of
Commerce, CP
2.7% 5/13/99, LOC Bayerische 10,000 10,000
Hypo-und Vereinsbank AG, LOC
Canadian Imperial Bank of
Commerce, CP
Los Angeles Gen. Oblig. TRAN 11,800 11,826
Series 1998, 4.25% 6/30/99
Los Angeles Hbr. Dept. Rev.
Participating VRDN:
Series FR/RI 7, 3% (BPA Bank 19,800 19,800
of New York NA) (a)(d)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles Hbr. Dept. Rev.
Participating VRDN: -
continued
Series SG 59, 2.77% $ 8,950 $ 8,950
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Los Angeles Ontario Int'l. 2,600 2,600
Arpt. Rev. Participating
VRDN Series SG 61, 2.77%
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Los Angeles Unified School
District Participating VRDN:
Series 60, 2.84% (Liquidity 3,975 3,975
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Series FR/RI A26, 2.95% 24,300 24,300
(Liquidity Facility Bank of
New York NA) (a)(e)
Los Angeles Wastewtr. Sys.
Rev.:
Participating VRDN Series SGA 15,970 15,970
26, 2.83% (Liquidity
Facility Societe Generale,
France) (a)(e)
2.55% 4/1/99, LOC Union Bank 2,600 2,600
of Switzerland, LOC Morgan
Guaranty Trust Co., NY, CP
2.85% 4/8/99, LOC Union Bank 2,500 2,500
of Switzerland, LOC Morgan
Guaranty Trust Co., NY, CP
3.1% 4/9/99, LOC Union Bank 4,300 4,300
of Switzerland, LOC Morgan
Guaranty Trust Co., NY, CP
Metro. Wtr. District of
Southern California:
Participating VRDN Series 10,560 10,560
98-19, 2.84% (Liquidity
Facility Bank of America
Nat'l. Trust & Savings
Assoc.) (a)(e)
Series A, 2.55% 6/16/99, CP 1,800 1,800
Series B:
2.55% 6/16/99, CP 15,600 15,600
2.9% 3/10/99, CP 2,000 2,000
Monterey Ind. Dev. Auth. 3,350 3,350
(Slautterback Corp. Proj.)
Series 1996 A, 2.65%, LOC
Bayerische Hypo-und
Vereinsbank AG, LOC
Bayerische Hypo-und
Vereinsbank AG, VRDN (a)(d)
Newark Ind. Dev. Auth. (Gas 3,000 3,000
Tech Proj.) Series 1989 A,
2.6%, LOC Union Bank of
Switzerland, VRDN (a)(d)
Northern California Pub. Pwr. 4,600 4,600
Auth. Participating VRDN
Series FR/RI 16, 2.95%, LOC
Bank of New York NA,
(Liquidity Facility Bank of
New York NA) (a)(e)
Oceanside Multi-family Rev. 6,000 6,000
(Lakeridge Apt. Proj.)
Series 1994, 3.2%
(Continental Casualty Co.
Guaranteed), VRDN (a)
Orange Ind. Dev. Rev. (Cont. 1,000 1,000
Air Conditioning Corp./Ellis
Enterprises) Series 1997,
2.65%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Pleasant Hill Redev. Agcy. $ 1,460 $ 1,460
Multi-family Hsg. Rev.
(Chateau III Proj.) Series
1996 A, 2.85%, LOC
Commerzbank AG, VRDN (a)(d)
Riverside County Gen. Oblig. 11,500 11,585
TRAN 4.5% 9/30/99
Riverside County Ind. Dev. 1,320 1,320
Auth. Ind. Dev. Rev.
(Merrick Engineering, Inc.)
3.05%, LOC Wells Fargo Bank
NA, San Francisco, VRDN
(a)(d)
Riverside County Teeter 4,000 4,000
Oblig. Series B, 2.25%
3/8/99, LOC Westdeutsche
Landesbank Girozentrale, CP
Sacramento County Arpt. Sys.
Rev. Participating VRDN:
Series SG 8, 2.87% (Liquidity 8,685 8,685
Facility Societe Generale,
France) (a)(e)
Series SGA 33, 2.83% 5,810 5,810
(Liquidity Facility Societe
Generale, France) (a)(e)
Sacramento County Hsg. Auth. 8,000 8,000
Multi-family Hsg. Rev.
(Chesapeake Commons) Series
1997 A, 2.65%, LOC Bank One,
Arizona NA, VRDN (a)(d)
Sacramento County Office of 8,800 8,846
Ed. TRAN 3.5% 1/21/00
Sacramento Muni. Util. 3,600 3,600
District Elec. Rev. Series
I, 2.65% 3/12/99, LOC
Bayerische Landesbank
Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP
Sacramento Unified School 10,400 10,420
District TRAN 3.25% 10/27/99
San Bernardino County Ind.
Dev. Auth.:
(McClain Citrus, Inc. Proj.) 2,900 2,900
2.65%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(NRI, Inc. Proj.) 2.65%, LOC 1,505 1,505
California Teachers
Retirement Sys., VRDN (a)(d)
(W & H Voortman, Inc. Proj.) 2,360 2,360
2.65%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
San Bernardino County Gen. 11,800 11,890
Oblig. TRAN 4.5% 9/30/99
San Diego Ind. Dev. Rev. 6,000 6,000
Participating VRDN Series
1992 A, 2.95% (Liquidity
Facility Bank of New York
NA) (a)(e)
San Diego Multi-Family Hsg. 5,000 5,000
Rev. Rfdg. (Coral Pointe
Apt. Proj.) Series 1993 A,
3.2% (Continental Casualty
Co. Guaranteed), VRDN (a)
San Francisco Bay Area
Transit Fing. Auth. Series A:
2.85% 4/5/99, LOC Union Bank 4,700 4,700
of Switzerland, CP
2.85% 4/12/99, LOC Union Bank 3,550 3,550
of Switzerland, CP
San Francisco City & County:
Participating VRDN:
Series 1996 AA2, 2.97% 1,740 1,740
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County:
- - continued
Participating VRDN:
Series 1984, 2.89% (Liquidity $ 4,745 $ 4,745
Facility Morgan Stanley,
Dean Witter & Co.) (a)(d)(e)
Series 1996 AA3, 2.97% 4,210 4,210
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series 1996 AA4, 2.97% 4,450 4,450
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series 98-31, 3.02% 16,890 16,890
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Arpt. Commission Int'l. Arpt. 1,015 1,015
Rev. Series 1997 B, 2.9%
4/12/99, CP
San Francisco City & County 11,300 11,383
Unified School District TRAN
Series 1998, 4.5% 9/22/99
San Leandro Multi-family Hsg. 5,000 5,000
Rev. (Carlton Plaza) 2.85%,
LOC Commerzbank AG, VRDN
(a)(d)
Santa Barbara County Gen. 1,000 1,009
Oblig. TRAN Series
1998-1999, 4.5% 10/1/99
Santa Clara County Gen. 5,200 5,241
Oblig. TRAN 4.5% 10/1/99
Santa Clara Unified School 1,000 1,006
District TRAN Series 1998,
4.25% 10/1/99
Santa Rosa Multi-Family Hsg. 5,850 5,850
Rev. (Quail Run Apts./Santa
Rosa Hsg. Partners) Series
1997 A, 2.85%, LOC US Bank
NA, VRDN (a)(d)
South Coast California Local 27,500 27,582
Ed. Agcy. TRAN 4.5% 6/30/99
(MBIA Insured)
Univ. of California Gen. 20,000 20,000
Oblig. Rfdg. Participating
VRDN Series 1997 G, 2.95%
(Liquidity Facility First
Union Nat'l. Bank of North
Carolina) (a)(e)
Vista City Ind. Dev. Auth. 5,770 5,770
Ind. Dev. Rev. (Desalination
Sys., Inc.) Series 1995,
2.75%, LOC Wells Fargo Bank
NA, San Francisco, VRDN
(a)(d)
931,546
GUAM - 0.8%
Guam Pwr. Auth. 3% 3/9/99 9,800 9,800
(AMBAC Insured), CP
PUERTO RICO - 1.8%
Puerto Rico Commonwealth Gen. 5,065 5,065
Oblig. Participating VRDN
2.84% (Liquidity Facility
Morgan Stanley, Dean Witter
& Co.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PUERTO RICO - CONTINUED
Puerto Rico Commonwealth Hwy. $ 3,700 $ 3,700
& Trans. Auth. Participating
VRDN Series ROC 11, 2.87%
(Liquidity Facility
Commerzbank AG) (a)(e)
Puerto Rico Commonwealth
Infrastructure Fing. Auth.
Participating VRDN:
Series 1998-99, 2.84% 4,935 4,935
(Liquidity Facility Morgan
Stanley, Dean Witter & Co.)
(a)(e)
Series 79, 2.84% (Liquidity 2,725 2,725
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Puerto Rico Elec. Pwr. Auth. 5,000 5,000
Participating VRDN Series
2-99-3, 2.87% (Liquidity
Facility Commerzbank AG)
(a)(e)
21,425
SHARES (000S)
OTHER - 20.5%
Municipal Central Cash Fund 248,885 248,885
(b)(c)
TOTAL INVESTMENT IN $ 1,211,656
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 1,211,656
</TABLE>
SECURITY TYPE ABBREVIATIONS
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
TRAN - TAX AND REVENUE
ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(c) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 2.95%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At February 28, 1999, the fund had a capital loss carryforward of
approximately $602,000 of which $562,000 and $40,000 will expire on
February 28, 2003 and 2006, respectively.
During the fiscal year ended February 28, 1999, 100% of the fund's
income dividends was free from federal income tax, and 34.67% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS(EXCEPT
PER-SHARE AMOUNT) FEBRUARY
28, 1999
ASSETS
Investment in securities, at $ 1,211,656
value - See accompanying
schedule
Cash 75
Receivable for investments 6,076
sold
Receivable for fund shares 4,915
sold
Interest receivable 10,486
TOTAL ASSETS 1,233,208
LIABILITIES
Payable for fund shares $ 3,197
redeemed
Distributions payable 107
Accrued management fee 474
Other payables and accrued 10
expenses
TOTAL LIABILITIES 3,788
NET ASSETS $ 1,229,420
Net Assets consist of:
Paid in capital $ 1,230,022
Accumulated net realized gain (602)
(loss) on investments
NET ASSETS, for 1,230,018 $ 1,229,420
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,229,420
(divided by) 1,230,018
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED FEBRUARY 28, 1999
INTEREST INCOME $ 42,885
EXPENSES
Management fee $ 6,490
Non-interested trustees' 5
compensation
Total expenses before 6,495
reductions
Expense reductions (134) 6,361
NET INTEREST INCOME 36,524
NET REALIZED GAIN (LOSS) ON 23
INVESTMENTS
NET INCREASE IN NET ASSETS $ 36,547
RESULTING FROM OPERATIONS
OTHER INFORMATION
Expense reductions: Custodian $ 7
credits
Transfer agent credits 127
$ 134
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 28, 1999 YEAR ENDED FEBRUARY 28, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 36,524 $ 42,978
Net realized gain (loss) 23 (33)
NET INCREASE (DECREASE) IN 36,547 42,945
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (36,524) (42,978)
from net interest income
Share transactions at net 1,272,706 1,481,851
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 35,094 42,120
distributions from net
interest income
Cost of shares redeemed (1,431,158) (1,515,041)
NET INCREASE (DECREASE) IN (123,358) 8,930
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) (123,335) 8,897
IN NET ASSETS
NET ASSETS
Beginning of period 1,352,755 1,343,858
End of period $ 1,229,420 $ 1,352,755
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment .028 .032 .031 .035 .030
Operations Net interest
income
Less Distributions
From net interest income (.028) (.032) (.031) (.035) (.030)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A, B 2.84% 3.26% 3.18% 3.60% 3.00%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,229 $ 1,353 $ 1,344 $ 1,307 $ 1,163
(in millions)
Ratio of expenses to average .50% .45% C .35% C .31% C .28% C
net assets
Ratio of expenses to average .49% D .45% .34% D .31% .28%
net assets after expense
reductions
Ratio of net interest income 2.81% 3.21% 3.14% 3.55% 2.96%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
E FOR THE YEAR ENDED FEBRUARY 29.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income. Yield measures the income paid by a fund. Since a
money market fund tries to maintain a $1 share price, yield is an
important measure of performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
1999
FIDELITY CA MUNICIPAL MONEY 2.71% 15.35% 38.86%
MARKET
California Tax-Free Money 2.65% 15.37% 38.77%
Market Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. To measure how the fund's performance stacked up against its
peers, you can compare it to the California tax-free money market
funds average, which reflects the performance of California tax-free
money market funds with similar objectives tracked by IBC Financial
Data, Inc. The past one year average represents a peer group of 54
money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
1999
FIDELITY CA MUNICIPAL MONEY 2.71% 2.90% 3.34%
MARKET
California Tax-Free Money 2.65% 2.90% 3.33%
Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
3/1/99 11/30/98 8/31/98 6/1/98 3/2/98
California Municipal Money 2.30% 2.56% 2.52% 3.18% 2.82%
Market
California Tax-Free Money 2.17% 2.45% 2.42% 3.07% 2.73%
Market Funds Average
California Municipal Money 3.88% 4.35% 4.33% 5.48% 4.86%
Market Tax-equivalent
Portion of fund's income 20.53% 13.54% 1.62% 0.00% 0.10%
subject to state taxes
California Municipal
Money Market
California Tax-Free
Money Market
Funds Average
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 2.3
Row: 1, Col: 2, Value: 2.17
Row: 2, Col: 1, Value: 2.56
Row: 2, Col: 2, Value: 2.45
Row: 3, Col: 1, Value: 2.52
Row: 3, Col: 2, Value: 2.42
Row: 4, Col: 1, Value: 3.18
Row: 4, Col: 2, Value: 3.07
Row: 5, Col: 1, Value: 2.82
Row: 5, Col: 2, Value: 2.73
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
table above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
California tax-free money market funds average as tracked by IBC
Financial Data, Inc. Or you can look at the fund's tax-equivalent
yield, which is based on a combined effective 1999 federal and state
income tax rate of 41.95% and reflects that a portion of the fund's
income was subject to state taxes. A portion of the fund's income may
be subject to the federal alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
(checkmark)COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields
on taxable investments.
However, a straight
comparison between the two
may be misleading because it
ignores the way taxes
reduce taxable returns.
Tax-equivalent yield - the
yield you'd have to earn on a
similar taxable investment to
match the tax-free yield -
makes the comparison more
meaningful. Keep in mind that
the U.S. government neither
insures nor guarantees a
money market fund. And there
is no assurance that a money
market fund will maintain a
$1 share price.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Diane McLaughlin)
An interview with Diane McLaughlin, Portfolio Manager of Fidelity
California Municipal Money Market Fund
Q. DIANE, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PERIOD?
A. The U.S. economy was very strong in 1998. Growth in real GDP -
gross domestic product adjusted for inflation - approached 4% over the
course of the year, expanding at an annual rate of 6.1% in the fourth
quarter. Employment was also quite robust, with the unemployment rate
averaging only 4.5% in 1998. Economic conditions like these are
usually accompanied by inflation. Wages started to creep upward as
employers increased pay to attract or retain workers. But consumers
didn't have to pay higher prices as the CPI (consumer price index)
hovered at a tame rate of 1.6% for the year. The strength of the
economy beat expectations; most market observers felt global economic
and financial crises would hurt growth in the U.S. much more than they
did. While the manufacturing sector experienced a downturn - with
exports from the U.S. suffering from increased competition - it
rebounded recently and its weakness was more than offset by solid
domestic demand. Robust consumer activity - especially in the holiday
shopping season - sustained growth through the end of 1998 and the
beginning of 1999.
Q. HOW DID THIS BACKDROP AFFECT FEDERAL RESERVE BOARD MONETARY POLICY?
A. Despite this economic strength, the expectation of an eventual
slowdown prompted the Fed to lower the rate banks charge each other
for overnight loans - known as the fed funds target rate - by 0.25
percentage points in late September. The Fed followed with a second
rate cut in October, responding to financial instability in the
markets, the near-collapse of a highly leveraged hedge fund and
increased aversion to risk by investors in the market. The Fed
implemented an additional cut in November, citing the presence of
downside risks in global financial markets.
Q. WHAT WAS YOUR STRATEGY DURING THIS PERIOD?
A. The fund's average maturity at the beginning of the 12-month period
stood at 46 days, and peaked at 50 days in mid-July. I extended the
fund's maturity through the summer months by buying fixed-rate,
one-year notes. There were two main reasons behind these purchases.
First, most California issuers bring their one-year municipal
securities to market in late June and early July; the additional
supply typically drives yields on these securities higher. In
addition, it made sense to lock in attractive one-year yields since it
became clear the Fed was going to make a move to cut short-term
interest rates. Since reaching its July peak, the average maturity has
since rolled down to 41 days at the end of the period. In addition, I
turned some of my focus - within the limits set by the fund's
prospectus - to out-of-state investment opportunities that offered
more appealing after-tax yields than tax-free alternatives in the
California market. Even though more of shareholders' income will be
taxable at the state level this year because of the out-of-state
investments, I pursued this strategy so the fund could provide higher
yields on a tax-adjusted basis than if I had chosen to invest the same
assets in lower-yielding tax-exempt California securities.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on February 28, 1999, was 2.28%,
compared to 2.77% 12 months ago. The latest yield was the equivalent
of a 3.85% taxable yield for California investors in the 41.95%
combined state and federal tax bracket, and reflects that a portion of
the fund's income was subject to state taxes. Through February 28,
1999, the fund's 12-month total return was 2.71%, compared to 2.65%
for the California tax-free money market funds average, according to
IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK GOING FORWARD?
A. In the minutes from its Open Market Committee meeting in November,
the Fed indicated that its decision to implement the latest
interest-rate cut was a tough one given continued economic strength in
the U.S. At the same meeting, the Fed shifted from a bias toward
lowering rates to a neutral stance. The Fed might reverse course and
increase rates if continued strength in the economy is finally
reflected in higher prices. On the other hand, there is still a risk
that outside factors might threaten U.S. economic growth and encourage
the Fed to ease credit by lowering rates once again. Given the
uncertainty about the future course of interest rates, I'll seek to
maintain a flexible, neutral positioning with the fund's average
maturity.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: high level of current
income, exempt from federal
income tax and California
state personal income tax as is
consistent with the
preservation of capital
FUND NUMBER: 097
TRADING SYMBOL: FCFXX
START DATE: July 7, 1984
SIZE: as of February 28,
1999, more than $1.3
billion
MANAGER: Diane McLaughlin,
since 1997; manager,
various Fidelity and Spartan
municipal money market
funds; joined Fidelity in
1992
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 2/28/99 % OF FUND'S INVESTMENTS 8/31/98 % OF FUND'S INVESTMENTS 2/28/98
0 - 30 74 73 60
31 - 90 5 17 20
91 - 180 13 2 14
181 - 397 8 8 6
WEIGHTED AVERAGE MATURITY
2/28/99 8/31/98 2/28/98
Fidelity California
Municipal 41 DAYS 39 Days 46 Days
Money Market Fund
California Tax
Free Money 40 DAYS 43 Days 40 Days
Market Funds Average *
</TABLE>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF FEBRUARY 28, 1999
Variable rate demand
notes (VRDNs) 47%
Commercial paper
(including CP mode) 13%
Tender bonds 1%
Municipal notes 18%
Municipal Money
Market Funds 20%
Other 1%
Row: 1, Col: 1, Value: 46.4
Row: 1, Col: 2, Value: 13.0
Row: 1, Col: 3, Value: 1.3
Row: 1, Col: 4, Value: 18.0
Row: 1, Col: 5, Value: 20.0
Row: 1, Col: 6, Value: 1.3
AS OF AUGUST 31, 1998
Variable rate demand
notes (VRDNs) 63%
Commercial paper
(including CP mode) 21%
Tender bonds 3%
Municipal notes 12%
Municipal Money
Market Funds 0%
Other 1%
Row: 1, Col: 1, Value: 62.7
Row: 1, Col: 2, Value: 21.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 12.0
Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 1.3
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.0%
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - 75.8%
Alameda County Ind. Dev.
Auth. Rev.:
(Edward L. Shimmon, Inc. $ 2,100 $ 2,100
Proj.) Series 1996 A, 2.8%,
LOC Banque Nationale de
Paris, VRDN (a)(d)
(Longview Fibre Co.) Series 1,750 1,750
1988, 3%, LOC ABN-AMRO Bank
NV, VRDN (a)
(Meskimen Family Trust Proj.) 2,000 2,000
Series 1998 A, 2.8%, VRDN
(a)(d)
Alameda County Multi-family 2,400 2,400
Hsg. Rev. (Berkeley Proj.)
Series 1998 A, 2.8%, LOC
Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
Butte County Office of Ed. 7,450 7,488
TRAN 4% 10/15/99
California Econ. Dev. Fin.
Auth. Ind. Dev. Rev.:
(California ISO Corp. Proj.) 3,400 3,400
Series 1998 B, 3%, LOC Bank
of America Nat'l. Trust &
Savings Assoc., VRDN (a)
(Joseph Schmidt Proj.) Series 1,500 1,500
A, 2.8%, LOC Banque
Nationale de Paris, VRDN
(a)(d)
(Kuhnash Properties III, 1,000 1,000
LLC/Arkay Plastics, LLC
Proj.) Series 1997, 2.85%,
LOC PNC Bank NA, VRDN (a)(d)
(Mercury Air Group Proj.) 4,900 4,900
2.65%, LOC BankBoston NA,
VRDN (a)(d)
California Edl. Facilities 5,200 5,200
Auth. Rev. Participating
VRDN Series FR/RI 37, 3%
(AMBAC Guaranteed)
(Liquidity Facility Bank of
New York NA) (a)(d)(e)
California Gen. Oblig.:
Participating VRDN:
Series 1996 L, 2.75% 7,485 7,485
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(e)
Series PA 238, 2.75% 6,525 6,525
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series SG 84, 2.75% 9,500 9,500
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SGB 15, 2.87% 5,000 5,000
(Liquidity Facility Societe
Generale, France) (a)(e)
Dept. of Veterans Affairs:
Bonds Series BJ, 4.125%, 6,200 6,200
tender 6/1/99 (d)
Participating VRDN:
Series FR/RI A17, 3% 14,350 14,350
(Liquidity Facility Nat'l.
Westminster Bank PLC)
(a)(d)(e)
Series PA 315, 2.77% 2,100 2,100
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
RAN 4% 6/30/99 50,700 50,860
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Gen. Oblig.: -
continued
Rfdg.:
3.5% 10/1/99 $ 11,200 $ 11,235
Participating VRDN:
Series 55, 2.84% (Liquidity 12,025 12,025
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Series MS 98-8, 2.84% 5,500 5,500
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series SGB 7, 2.87% 2,700 2,700
(Liquidity Facility Societe
Generale, France) (a)(e)
2.9% 3/5/99, CP 18,700 18,700
2.9% 3/8/99, CP 12,500 12,500
2.95% 3/5/99, CP 2,000 2,000
California Health Facilities
Fing. Auth. Rev.:
Participating VRDN:
Series 1998, 2.84% (Liquidity 6,065 6,065
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Series 90, 2.84% (Liquidity 9,995 9,995
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
(Southern California 2,800 2,800
Presbeterian Proj.) Series
1998, 2.7% (MBIA Insured),
VRDN (a)
3.1%, LOC Morgan Guaranty 4,315 4,315
Trust Co., NY, VRDN (a)
California Hsg. Fin. Agcy.
Rev.:
Bonds Series 1998 E, 3.55%, 1,585 1,585
tender 3/12/99 (d)
Participating VRDN:
Series 1994-1, 3.07% 4,000 4,000
(Liquidity Facility State
Street Bank & Trust Co.)
(a)(d)(e)
Series 1996 C1, 3.02% 3,225 3,225
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(d)(e)
Series 83, 2.89% (Liquidity 3,995 3,995
Facility Morgan Stanley,
Dean Witter & Co.) (a)(d)(e)
Series 96C0505, 2.87% 2,000 2,000
(Liquidity Facility
Citibank, New York NA)
(a)(d)(e)
Series PA 112, 2.77% 2,085 2,085
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PA 58, 2.72% 1,040 1,040
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
Series PA 90, 2.77% 730 730
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PT 14, 2.72% 3,065 3,065
(Liquidity Facility
Commerzbank AG) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Hsg. Fin. Agcy.
Rev.: - continued
Participating VRDN:
Series PT 40A, 2.77% $ 6,700 $ 6,700
(Liquidity Facility
Commerzbank AG) (a)(d)(e)
Series PT 40B, 2.77% 10,450 10,450
(Liquidity Facility
Bayerische Hypotheken-und
Wechselbank AG) (a)(d)(e)
Series PT 40D, 2.77% 60 60
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series PT 56, 2.77% 385 385
(Liquidity Facility Merrill
Lynch & Co.) (a)(d)(e)
Series RI A2, 3.05% 4,490 4,490
(Liquidity Facility
Bayerische Hypotheken-und
Wechselbank AG) (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
California Poll. Cont. Fing.
Auth. Rev.:
Bonds:
(Southern California Edison 4,400 4,400
Co.) Series 1985 D, 2.75%
4/9/99, CP mode
(Pacific Gas & Elec. Co.): 15,000 15,000
Series 1996 D, 2.7% 3/8/99,
LOC Union Bank of
Switzerland, CP mode
Series 1996 E, 2.5% 3/10/99, 3,400 3,400
LOC Morgan Guaranty Trust
Co., NY, CP mode
(Pacific Gas & Elec. Co.): 8,000 8,000
Series 1996 C, 3.05%, LOC
Bank of America Nat'l. Trust
& Savings Assoc., VRDN (a)
Series 1997 D, 2.7%, VRDN 2,500 2,500
(a)(d)
(Shell Oil Co. Martinez 7,500 7,500
Proj.) Series 1994 A, 3.1%,
VRDN (a)(d)
Resource Recovery (Atlantic 8,400 8,400
Richfield Co.) Series 1994
A, 3.2%, VRDN (a)(d)
Solid Waste Disp. Rev. (Shell
Martinez Refining Co. Proj.):
Series 1996 A, 3%, VRDN (a)(d) 7,600 7,600
Series 1996 B, 3.1%, VRDN 5,200 5,200
(a)(d)
California School Cash 31,500 31,588
Reserve Prog. Auth. TRAN
Series A, 4.5% 7/2/99 (AMBAC
Insured)
California Statewide Cmnty.
Dev. Auth. Rev.:
(Aegis of Aptos Proj.) Series 2,350 2,350
1998-Y 3.15%, LOC Key Bank,
NA, VRDN (a)(d)
(Andercraft Prod., Inc.) 600 600
Series 1989, 2.7%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Canyon Creek Apts.) Series 2,000 2,000
1995 C, 2.7% (Fannie Mae
Guaranteed), VRDN (a)(d)
(Cordeiro Vault Co., Inc. 1,070 1,070
Proj.) Series 1996 M, 2.7%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
California Statewide Cmnty.
Dev. Auth. Rev.: - continued
(Eurodesign Cabinets, Inc. $ 800 $ 800
Proj.) 2.7%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Fibrebond West, Inc. Proj.) 1,825 1,825
Series 1996 N, 2.65%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Fulton Properties Ltd., 3,485 3,485
Inc.) Series 1996 F, 2.7%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
(JTF Enterprises LLC Proj.) 3,000 3,000
Series 1996 A, 2.7%, LOC
Bank of America Nat'l. Trust
& Savings Assoc., VRDN (a)(d)
(Lansmont Corp. Proj.) Series 1,000 1,000
1996 G, 2.7%, LOC Wells
Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Lynwood Enterprises LLC 1,400 1,400
Proj.) Series 1997 D, 2.7%,
LOC Fleet Nat'l. Bank, VRDN
(a)(d)
(Marcel & Margrit Shurman 1,625 1,625
Proj.) 2.7%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Multi-family Hsg. Dev.) 1,330 1,330
(Evapco, Inc.) Series 1996
K, 2.7%, LOC NationsBank NA,
VRDN (a)(d)
(Oakmont Stokton) Series 1997 5,960 5,960
C, 2.65%, LOC Heller Finl.,
Inc., VRDN (a)(d)
(Redline Synthetic Oil Corp.) 1,035 1,035
2.7%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Setton Properties, Inc. 2,245 2,245
Proj.) Series 1995 E, 2.7%,
LOC Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
(Sunrise of Danville Proj.) 6,165 6,165
2.65%, LOC Commerzbank AG,
VRDN (a)(d)
(Sunrise of Moraga) Series 1,200 1,200
1997, 2.85%, LOC Heller
Finl., Inc., VRDN (a)(d)
(Sys. Engineering & Mgmt. 1,580 1,580
Co.) 2.7%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(W&H Voortman, Inc. Proj.) 1,020 1,020
Series 1990, 2.7%, LOC
California Teachers
Retirement Sys., VRDN (a)(d)
(Zarn, Inc. Proj.) Series 455 455
1989, 2.7%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
(Zieman Manufacturing Co. 420 420
Proj.) Series 1990, 2.7%,
LOC California Teachers
Retirement Sys., VRDN (a)(d)
Chula Vista Ind. Dev. Rev.
Bonds (San Diego Gas & Elec.
Co.):
Series C:
2.75% 4/8/99, CP mode (d) 6,000 6,000
2.75% 4/8/99, CP mode (d) 4,000 4,000
Series D, 2.45% 3/1/99, CP 3,500 3,500
mode (d)
Series E, 2.45% 3/4/99, CP 2,500 2,500
mode (d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Clovis Unified School $ 4,000 $ 4,004
District TRAN 4% 6/30/99
Desert Sands Unified School 2,400 2,408
District TRAN 4% 7/9/99
Fairfield Ind. Dev. Auth. 4,100 4,100
(Meyer Cookward Ind. Proj.)
2.8%, LOC Banque Nationale
de Paris, VRDN (a)(d)
Fowler Ind. Dev. Auth. Ind. 1,600 1,600
Dev. Rev. (Bee Sweet Citrus,
Inc. Proj.) Series 1995,
2.85%, LOC Bank of America
Nat'l. Trust & Savings
Assoc., VRDN (a)(d)
Garden Grove Hsg. Auth. 1,700 1,700
Multi-family Rev. (Valley
View Senoir Villas Proj.)
Series 1990 A, 2.75%, LOC
Wells Fargo Bank NA, San
Francisco, VRDN (a)(d)
Huntington Beach Gen. Oblig. 8,650 8,692
TRAN 4% 9/30/99
Irvine Ranch Wtr. District
Rfdg.:
(Impt. District #103, 105, 3,500 3,500
109) Series 1993 A, 3%, LOC
Bank of America Nat'l. Trust
& Savings Assoc., VRDN (a)
Series B, 3%, LOC Landesbank 3,900 3,900
Hessen-Thuringen, VRDN (a)
Kern County Gen. Oblig. TRAN 10,500 10,566
4.25% 10/1/99
Lassen Muni. Util. District 3,065 3,065
Rev. Rfdg. Series 1996 A, 3%
(FSA Insured) (BPA Cr. Local
de France), VRDN (a)(d)
Long Beach Hbr. Rev.:
Participating VRDN:
Series 1998 A, 3% (Liquidity 9,900 9,900
Facility Bayerische
Hypotheken-und Wechselbank
AG) (Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (a)(d)(e)
Series SG 73, 2.77% 3,000 3,000
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Series A:
2.25% 3/9/99, CP (d) 1,500 1,500
2.5% 4/7/99, CP (d) 7,600 7,600
2.65% 3/4/99, CP (d) 4,000 4,000
Los Angeles County Cap. Asset
Leasing Corp.:
TRAN Series 1998-1999 A, 4.5% 20,525 20,614
6/30/99
2.75% 3/24/99, LOC 5,550 5,550
Westdeutsche Landesbank
Girozentrale, LOC Bayerische
Landesbank Girozentrale, CP
Los Angeles County Metro.
Trans. Auth. Rev.:
Participating VRDN:
Series 1993 B, 2.95% 2,000 2,000
(Liquidity Facility Bank of
New York NA) (e)
Series SG 2, 2.87% (Liquidity 26,850 26,850
Facility Societe Generale,
France) (a)(e)
Series SG 3, 2.87% (Liquidity 5,500 5,500
Facility Societe Generale,
France) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Los Angeles County Metro.
Trans. Auth. Rev.: - continued
Participating VRDN:
Series SG 46, 2.75% $ 2,930 $ 2,930
(Liquidity Facility Societe
Generale, France) (a)(e)
Series SG 54, 2.75% 2,525 2,525
(Liquidity Facility Societe
Generale, France) (a)(e)
Series A:
2.25% 3/8/99, LOC Bayerische 5,000 5,000
Hypo-und Vereinsbank AG, LOC
Canadian Imperial Bank of
Commerce, CP
2.7% 5/13/99, LOC Bayerische 10,200 10,200
Hypo-und Vereinsbank AG, LOC
Canadian Imperial Bank of
Commerce, CP
Los Angeles Gen. Oblig. TRAN
Series 1998:
4% 6/30/99 2,630 2,634
4.25% 6/30/99 9,600 9,621
Los Angeles Hbr. Dept. Rev.
Participating VRDN:
Series FR/RI 7, 3% (BPA Bank 11,185 11,185
of New York NA) (a)(d)(e)
Series SG 59, 2.77% 4,725 4,725
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Los Angeles Multi-family Hsg. 22,095 22,095
Rev. Series 1985 K, 2.4%,
LOC Fed. Home Ln. Bank, San
Francisco, VRDN (a)
Los Angeles Ontario Int'l. 3,400 3,400
Arpt. Rev. Participating
VRDN Series SG 61, 2.77%
(Liquidity Facility Societe
Generale, France) (a)(d)(e)
Los Angeles Unified School
District Participating VRDN:
Series 60, 2.84% (Liquidity 3,600 3,600
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Series FR/RI A26, 2.95% 37,000 37,000
(Liquidity Facility Bank of
New York NA) (a)(e)
Los Angeles Wastewtr. Sys.
Rev.:
Participating VRDN Series SGA 1,000 1,000
26, 2.83% (Liquidity
Facility Societe Generale,
France) (a)(e)
2.55% 4/1/99, LOC Union Bank 2,400 2,400
of Switzerland, LOC Morgan
Guaranty Trust Co., NY, CP
2.85% 4/8/99, LOC Union Bank 2,500 2,500
of Switzerland, LOC Morgan
Guaranty Trust Co., NY, CP
3.1% 4/9/99, LOC Union Bank 3,200 3,200
of Switzerland, LOC Morgan
Guaranty Trust Co., NY, CP
Metro. Wtr. District of
Southern California:
Participating VRDN Series 9,900 9,900
98-19, 2.84% (Liquidity
Facility Bank of America
Nat'l. Trust & Savings
Assoc.) (a)(e)
Series A, 2.55% 6/17/99, CP 8,200 8,200
Series B, 2.55% 6/16/99, CP 6,400 6,400
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Northern California Pub. Pwr. $ 5,000 $ 5,000
Auth. Participating VRDN
Series FR/RI 16, 2.95%, LOC
Bank of New York NA,
(Liquidity Facility Bank of
New York NA) (a)(e)
Oceanside Multi-family Rev. 6,700 6,700
(Lakeridge Apt. Proj.)
Series 1994, 3.2%
(Continental Casualty Co.
Guaranteed), VRDN (a)
Ontario Ind. Dev. Auth. Rev. 2,500 2,500
(Safari Land Proj.) Series
1989, 2.65%, LOC Bank of
America Nat'l. Trust &
Savings Assoc., VRDN (a)(d)
Orange Ind. Dev. Rev. (Cont. 800 800
Air Conditioning Corp./Ellis
Enterprises) Series 1997,
2.65%, LOC California
Teachers Retirement Sys.,
VRDN (a)(d)
Orange County Apt. Dev. Rev.:
(Foothill Oaks Apts. Proj.) 3,400 3,400
Series 1989 B, 2.7%, LOC
Bank of America Nat'l. Trust
& Savings Assoc., LOC
Freddie Mac, VRDN (a)(d)
(Wood Canyon Villas) Series 4,900 4,900
1991 B, 2.75%, LOC Bank of
America Nat'l. Trust &
Savings Assoc., VRDN (a)(d)
Oxnard Redev. Agcy. Ctfs. of 3,195 3,195
Prtn. (Channel Islands Bus.
Ctr. Proj.) 3.275%, LOC
Wells Fargo Bank NA, San
Francisco, VRDN (a)
Pittsburg Multi-family Mtg. 8,000 8,000
Rev. (Fountain Plaza Apt.)
2.95% (Fannie Mae
Guaranteed), VRDN (a)
Pleasant Hill Redev. Agcy. 710 710
Multi-family Hsg. Rev.
(Chateau III Proj.) Series
1996 A, 2.85%, LOC
Commerzbank AG, VRDN (a)(d)
Redondo Beach Redev. Agcy. 3,500 3,500
Multi-family Rev.
(McCandless Senior Hsg.
Proj.) Series 1995 A, 2.65%,
LOC Comerica Bank, Detroit,
VRDN (a)
Riverside County Gen. Oblig. 12,500 12,595
TRAN 4.5% 9/30/99
Riverside County Ind. Dev. 985 985
Auth. Ind. Dev. Rev.
(Merrick Engineering, Inc.)
3.05%, LOC Wells Fargo Bank
NA, San Francisco, VRDN
(a)(d)
Riverside County Teeter 3,800 3,800
Oblig. Series B, 2.75%
4/5/99, LOC Westdeutsche
Landesbank Girozentrale, CP
Sacramento County Arpt. Sys. 3,100 3,100
Rev. Participating VRDN
Series SGA 33, 2.83%
(Liquidity Facility Societe
Generale, France) (a)(e)
Sacramento County Hsg. Auth. 4,500 4,500
Multi-family Hsg. Rev.
California Place) Series B,
2.65%, LOC Bank One, Arizona
NA, VRDN (a)(d)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Sacramento County Office of
Ed. TRAN:
3.5% 1/21/00 $ 9,200 $ 9,248
4.25% 3/17/99 3,300 3,302
Sacramento Muni. Util.
District Elec. Rev.:
Participating VRDN Series SGB 4,000 4,000
4, 2.87% (Liquidity Facility
Societe Generale, France)
(a)(e)
Series I, 2.65% 3/12/99, LOC 3,800 3,800
Bayerische Landesbank
Girozentrale, LOC
Westdeutsche Landesbank
Girozentrale, CP
Sacramento Unified School 9,600 9,618
District TRAN 3.25% 10/27/99
San Bernardino County Gen. 8,300 8,372
Oblig. TRAN 4.5% 9/30/99
San Diego County Gen. Oblig. 2,700 2,722
TRAN 4.5% 9/30/99
San Diego Ind. Dev. Rev.:
Participating VRDN Series
1992 A:
2.95% (Liquidity Facility 8,000 8,000
Bank of New York NA) (a)(e)
2.95% (Liquidity Facility 5,000 5,000
Bank of New York NA) (a)(e)
Rfdg. Bonds Series B, 2.25% 2,500 2,500
3/8/99, CP mode
San Diego Multi-Family Hsg. 3,265 3,265
Rev. Rfdg. (Coral Pointe
Apt. Proj.) Series 1993 A,
3.2% (Continental Casualty
Co. Guaranteed), VRDN (a)
San Diego Unified School 3,000 3,028
District TRAN 4.5% 10/1/99
San Diego Wtr. Util. 15,670 15,670
Participating VRDN Series PT
1076, 2.72% (FGIC Insured)
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
San Francisco Bay Area
Transit Fing. Auth. Series A:
2.85% 4/5/99, LOC Union Bank 4,700 4,700
of Switzerland, CP
2.85% 4/12/99, LOC Union Bank 3,550 3,550
of Switzerland, CP
San Francisco City & County:
Participating VRDN:
Series 1996 AA1, 2.97% 3,775 3,775
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series 1996 AA2, 2.97% 2,240 2,240
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series 1996 A, 2.72% 10,075 10,075
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series 1997 T, 2.72% 3,905 3,905
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(e)
Series 98-31, 3.02% 21,000 21,000
(Liquidity Facility Bank of
America Nat'l. Trust &
Savings Assoc.) (a)(e)
Series PT-125, 2.72% 3,180 3,180
(Liquidity Facility Merrill
Lynch & Co.) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
San Francisco City & County $ 10,700 $ 10,781
Unified School District TRAN
Series 1998, 4.5% 9/22/99
San Joaquin Hills Trans. 3,940 3,940
Corridor Agcy. Participating
VRDN Series PT 137, 2.72%
(Liquidity Facility
Commerzbank AG) (a)(e)
San Jose Redev. Agcy. 3,400 3,400
Participating VRDN Series PA
42I, 2.72% (Liquidity
Facility Merrill Lynch &
Co.) (a)(e)
San Jose Multi-Family Hsg.
Rev.:
(Almaden Lake Village Apt. 10,000 10,000
Assoc.) Series 1997 A,
2.75%, LOC Bank of America
Nat'l. Trust & Savings
Assoc., VRDN (a)(d)
(Carlton Plaza) Series 1998 4,000 4,000
A, 2.8%, LOC Commerzbank AG,
VRDN (a)(d)
(Siena Ranaissance Apts.) 6,000 6,000
Series 1996 A, 2.75%, LOC
Key Bank, NA, VRDN (a)(d)
San Leandro Multi-family Hsg. 3,220 3,220
Rev. (Carlton Plaza) 2.85%,
LOC Commerzbank AG, VRDN
(a)(d)
Santa Barbara County Gen. 1,100 1,108
Oblig. TRAN Series
1998-1999, 4.5% 10/1/99
Santa Clara County Gen. 9,800 9,875
Oblig. TRAN 4.5% 10/1/99
Santa Rosa Multi-Family Hsg. 1,750 1,750
Rev. (Quail Run Apts./Santa
Rosa Hsg. Partners) Series
1997 A, 2.85%, LOC US Bank
NA, VRDN (a)(d)
South Coast California Local 22,500 22,567
Ed. Agcy. TRAN 4.5% 6/30/99
(MBIA Insured)
Southern California Pub. Pwr. 9,300 9,300
Auth. Participating VRDN
Series SG 35, 2.72%
(Liquidity Facility Societe
Generale, France) (a)(e)
Stanislaus County Office of 2,350 2,362
Ed. TRAN Series 1998, 4.5%
7/30/99
Torrance Hosp. Rev. (Little 10,800 10,800
Co. of Mary Hosp.-Torrance
Mem. Med. Ctr.) Series 1992,
2.7%, LOC Chase Manhattan
Bank, VRDN (a)
Univ. of California Gen.
Oblig.:
Rfdg. Participating VRDN 13,430 13,430
Series 1997 G, 2.95%
(Liquidity Facility First
Union Nat'l. Bank of North
Carolina) (a)(e)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
CALIFORNIA - CONTINUED
Univ. of California Gen.
Oblig.: - continued
Series A:
2.8% 4/6/99, CP $ 5,000 $ 5,000
2.85% 4/7/99, CP 5,000 5,000
Vista City Ind. Dev. Auth. 1,680 1,680
Ind. Dev. Rev. (Desalination
Sys., Inc.) Series 1995,
2.75%, LOC Wells Fargo Bank
NA, San Francisco, VRDN
(a)(d)
1,012,968
GUAM - 1.3%
Guam Pwr. Auth.:
2.75% 4/9/99 (AMBAC Insured), 3,700 3,700
CP
2.75% 4/15/99 (AMBAC 5,000 5,000
Insured), CP
3% 3/9/99 (AMBAC Insured), CP 8,300 8,300
17,000
PUERTO RICO - 2.8%
Puerto Rico Commonwealth Gen. 15,300 15,300
Oblig. Participating VRDN
2.84% (Liquidity Facility
Morgan Stanley, Dean Witter
& Co.) (a)(e)
Puerto Rico Commonwealth Hwy. 3,400 3,400
& Trans. Auth. Participating
VRDN Series ROC 11, 2.87%
(Liquidity Facility
Commerzbank AG) (a)(e)
Puerto Rico Commonwealth 7,525 7,525
Infrastructure Fing. Auth.
Participating VRDN Series
79, 2.84% (Liquidity
Facility Morgan Stanley,
Dean Witter & Co.) (a)(e)
Puerto Rico Elec. Pwr. Auth.
Participating VRDN:
Series 2-99-3, 2.87% 5,400 5,400
(Liquidity Facility
Commerzbank AG) (a)(e)
Series SGA 44, 2.8% 6,100 6,100
(Liquidity Facility Societe
Generale, France) (a)(e)
37,725
SHARES (000S)
OTHER - 20.1%
Municipal Central Cash Fund 268,424 268,424
(b)(c)
TOTAL INVESTMENT IN $ 1,336,117
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 1,336,117
</TABLE>
SECURITY TYPE ABBREVIATIONS
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
TRAN - TAX AND REVENUE
ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Information in this report regarding holdings by state and
security types does not reflect the holdings of the Municipal Central
Cash Fund. A listing of the Municipal Central Cash Fund's holdings as
of its most recent fiscal period end is available upon request.
(c) At the period end, the seven-day yield of the Municipal Central
Cash Fund was 2.95%. The yield refers to the income earned by
investing in the fund over the seven-day period, expressed as an
annual percentage.
(d) Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
(e) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At February 28, 1999, the fund had a capital loss carryforward of
approximately $491,000 of which $446,000, $7,000, $18,000 and $20,000
will expire on February 28, 2003, 2005, 2006 and 2007, respectively.
During the fiscal year ended February 28, 1999, 100% of the fund's
income dividends was free from federal income tax, and 29.92% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) FEBRUARY
28, 1999
ASSETS
Investment in securities, at $ 1,336,117
value - See accompanying
schedule
Cash 51
Receivable for fund shares 30,039
sold
Interest receivable 10,703
Prepaid expenses 47
TOTAL ASSETS 1,376,957
LIABILITIES
Payable for investments $ 6,076
purchased
Payable for fund shares 15,883
redeemed
Distributions payable 20
Accrued management fee 425
Other payables and accrued 323
expenses
TOTAL LIABILITIES 22,727
NET ASSETS $ 1,354,230
Net Assets consist of:
Paid in capital $ 1,354,721
Accumulated net realized gain (491)
(loss) on investments
NET ASSETS, for 1,354,742 $ 1,354,230
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,354,230
(divided by) 1,354,742
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED FEBRUARY 28, 1999
INTEREST INCOME $ 36,922
Expenses
Management fee $ 4,369
Transfer agent fees 1,894
Accounting fees and expenses 159
Non-interested trustees' 4
compensation
Custodian fees and expenses 60
Registration fees 159
Audit 33
Legal 8
Miscellaneous 8
Total expenses before 6,694
reductions
Expense reductions (10) 6,684
NET INTEREST INCOME 30,238
NET REALIZED GAIN (LOSS) ON (18)
INVESTMENTS
NET INCREASE IN NET ASSETS $ 30,220
RESULTING FROM OPERATIONS
OTHER INFORMATION
Expense reductions: Custodian $ 10
credits
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED FEBRUARY 28, 1999 YEAR ENDED FEBRUARY 28, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 30,238 $ 26,074
Net realized gain (loss) (18) (15)
NET INCREASE (DECREASE) IN 30,220 26,059
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (30,238) (26,074)
from net interest income
Share transactions at net 5,945,037 3,543,308
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 29,603 25,455
distributions from net
interest income
Cost of shares redeemed (5,596,173) (3,412,672)
NET INCREASE (DECREASE) IN 378,467 156,091
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 378,449 156,076
IN NET ASSETS
NET ASSETS
Beginning of period 975,781 819,705
End of period $ 1,354,230 $ 975,781
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 1997 1996 C 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .027 .030 .029 .032 .026
Operations Net interest
income
Less Distributions
From net interest income (.027) (.030) (.029) (.032) (.026)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 2.71% 3.07% 2.90% 3.21% 2.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,354 $ 976 $ 820 $ 733 $ 675
(in millions)
Ratio of expenses to average .59% .62% .62% .64% .62%
net assets
Ratio of expenses to average .59% .61% B .61% B .64% .62%
net assets after expense
reductions
Ratio of net interest income 2.66% 3.02% 2.86% 3.17% 2.58%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE YEAR ENDED FEBRUARY 29.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan California Municipal Income Fund (the income fund) is a fund
of Fidelity California Municipal Trust. Spartan California Municipal
Money Market Fund and Fidelity California Municipal Money Market Fund
(the money market funds) are funds of Fidelity California Municipal
Trust II. Each trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company. Fidelity California Municipal Trust and Fidelity California
Municipal Trust II (the trusts) are organized as a Massachusetts
business trust and a Delaware business trust, respectively. Each fund
is authorized to issue an unlimited number of shares. The financial
statements have been prepared in conformity with generally accepted
accounting principles which require management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the income
and the money market funds:
SECURITY VALUATION
INCOME FUND. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Securities for
which quotations are not readily available are valued at their fair
value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which quotations are not readily available are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
MONEY MARKET FUNDS. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of original issue discount, is accrued as
earned. For the money market funds, accretion of discount represents
unrealized gain until realized at the time of a security disposition
or maturity.
EXPENSES. Most expenses of each trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income. Distributions to shareholders from
realized capital gains on investments, if any, are recorded on the
ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS -
CONTINUED
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, market discount, capital loss
carryforwards, and losses deferred due to wash sales and futures. The
income fund also utilized earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and
may affect the per-share allocation between net interest income and
realized and unrealized gain (loss). Accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable gain remaining at fiscal year end is distributed in the
following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the Securities and Exchange Commission (the SEC), the funds may invest
in the Municipal Central Cash Fund (the Cash Fund) managed by Fidelity
Investments Money Management, Inc. (FIMM), an affiliate of Fidelity
Management & Research Company (FMR). The Cash Fund is an open-end
money market fund available only to investment companies and other
accounts managed by FMR and its affiliates. The Cash Fund seeks
preservation of capital, liquidity, and current income by investing in
high-quality, short-term municipal securities of various states and
municipalities. Income distributions from the Cash Fund are declared
daily and paid monthly from net interest income. Income distributions
earned by the funds are recorded as interest income in the
accompanying financial statements.
WHEN-ISSUED SECURITIES. Each fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased on a when-issued or forward
commitment basis are identified as such in each applicable fund's
schedule of investments. Each fund may receive compensation for
interest forgone in the purchase of a when-issued security. Losses may
arise due to changes in the market value of the underlying securities,
if the counterparty does not perform under the contract, or if the
issuer does not issue the securities due to political, economic, or
other factors.
2. OPERATING POLICIES -
CONTINUED
FUTURES CONTRACTS. The income fund may use futures contracts to manage
its exposure to the bond market and to fluctuations in interest rates.
Buying futures tends to increase the fund's exposure to the underlying
instrument, while selling futures tends to decrease the fund's
exposure to the underlying instrument or hedge other fund investments.
Losses may arise from changes in the value of the underlying
instruments or if the counterparties do not perform under the
contracts' terms. Gains (losses) are realized upon the expiration or
closing of the futures contracts. Futures contracts are valued at the
settlement price established each day by the board of trade or
exchange on which they are traded.
RESTRICTED SECURITIES. Certain funds are permitted to invest in
securities that are subject to legal or contractual restrictions on
resale. These securities generally may be resold in transactions
exempt from registration or to the public if the securities are
registered. Disposal of these securities may involve time-consuming
negotiations and expense, and prompt sale at an acceptable price may
be difficult. At the end of the period, the funds had no investment in
restricted securities.
3. PURCHASES AND SALES
OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities, other than short-term
securities, aggregated $476,450,000 and $422,797,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $113,591,000 and $163,725,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the funds' investment adviser for the income fund
and Fidelity California Municipal Money Market Fund, FMR receives a
monthly fee that is calculated on the basis of a group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
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 0.1100% to 0.3700% for the
period. The annual individual fund fee rate for each fund is 0.25%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. For the
period, the management fees were equivalent to annual rates of 0.38%
of average net assets for the income fund and Fidelity California
Municipal Money Market Fund.
As Spartan California Municipal Money Market Fund's investment
adviser, FMR pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest,
taxes, brokerage commissions and extraordinary expenses. FMR receives
a fee that is computed daily at an annual rate of 0.50% of the fund's
average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
MANAGEMENT FEE - CONTINUED
FMR also bears the cost of providing shareholder services to Spartan
California Municipal Money Market Fund. To offset the cost of
providing these services, FMR or its affiliates collect certain
transaction fees from the fund's shareholders which amounted to
$13,000 for the period.
SUB-ADVISER FEE. As the money market and the income (effective January
1, 1999) funds' investment sub-adviser, FIMM, a wholly owned
subsidiary of FMR, receives a fee from FMR of 50% of the management
fee payable to FMR. The fee is paid prior to any voluntary expense
reimbursements which may be in effect.
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the
custodian and transfer and shareholder servicing agent for the income
fund and Fidelity California Municipal Money Market 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 funds' transfer and shareholder servicing agent
and accounting functions. The funds pay account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. The accounting fee is based on the level of
average net assets for the month plus out-of-pocket expenses.
For the period, the transfer agent fees were equivalent to an annual
rate of 0.09% and 0.17% of average net assets for the income fund and
Fidelity California Municipal Money Market Fund, respectively.
MONEY MARKET INSURANCE. Pursuant to an Exemptive Order issued by the
SEC, the money market funds, along with other money market funds
advised by FMR or its affiliates, have entered into insurance
agreements with FIDFUNDS Mutual Limited (FIDFUNDS), an affiliated
mutual insurance company, effective January 1, 1999. FIDFUNDS provides
limited coverage for certain loss events including issuer default as
to payment of principal or interest and bankruptcy or insolvency of a
credit enhancement provider. The insurance does not cover losses
resulting from changes in interest rates, ratings downgrades or other
market conditions. The funds may be subject to a special assessment of
up to approximately 2.5 times the funds' annual gross premium if
covered losses exceed certain levels. During the period, Fidelity
California Municipal Money Market Fund paid premiums of $56,796 to
FIDFUNDS which are being amortized over one year. During the period,
FMR has borne the cost of Spartan California Municipal Money Market
Fund's premium payable to FIDFUNDS.
5. BANK BORROWINGS.
The income fund is permitted to have bank borrowings for temporary or
emergency purposes to fund shareholder redemptions. The fund has
established borrowing
5. BANK BORROWINGS -
CONTINUED
arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a
market value in excess of 220% of the total bank borrowings. The
interest rate on the borrowings is the bank's base rate, as revised
from time to time. The maximum loan and the average daily loan
balances during the period for which loans were outstanding amounted
to $3,211,000 and $1,611,500, respectively. The weighted average
interest rate was 6.2%.
6. EXPENSE REDUCTIONS.
The income fund, Fidelity California Municipal Money Market Fund and
FMR, on behalf of Spartan California Municipal Money Market Fund, have
entered into arrangements with their custodians and transfer agents
whereby credits realized as a result of uninvested cash balances were
used to reduce a portion of each applicable fund's expenses. For the
period, the reductions under these arrangements are shown under the
caption "Other Information" on each applicable fund's Statement of
Operations.
7. SHARE TRANSACTIONS.
Share transactions for the income fund were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS
YEAR ENDED YEAR ENDED FEBRUARY 28, YEAR ENDED YEAR ENDED FEBRUARY 28,
FEBRUARY 28, FEBRUARY 28,
AMOUNTS IN THOUSANDS 1999 1998 1999 1998
Shares sold 27,333 15,402 $ 338,914 $ 186,579
Issued in exchange for the - 33,067 - 398,129
net assets of Spartan
California Municipal Income
Fund
Issued in exchange for the - 5,773 - 69,510
net assets of Spartan
California Intermediate
Municipal Income Fund
Issued in exchange for the - 16,576 - 199,247
net assets of Fidelity
California Insured Municipal
Income Fund
Reinvestment of distributions 4,128 2,641 51,113 31,993
Shares redeemed (22,189) (14,378) (274,845) (173,840)
Net increase (decrease) 9,272 59,081 $ 115,182 $ 711,618
</TABLE>
8. MERGER INFORMATION.
On August 14, August 21, and August 28, 1997, the income fund acquired
all of the assets and assumed all of the liabilities of Spartan
California Municipal Income Fund, Spartan California Intermediate
Municipal Income Fund and Fidelity California Insured Municipal Income
Fund (target funds), respectively. Each acquisition was approved by
the shareholders of the target funds on August 4, 1997. Based on the
opinion of fund counsel, the reorganization qualified as a tax-free
reorganization for federal income tax purposes with no gain or loss
recognized to the funds or their shareholders.
The fund's acquisition of Spartan California Municipal Income Fund was
accomplished by an exchange of 33,067,000 shares of the fund for
36,796,000 shares then outstanding of Spartan California Municipal
Income Fund (each valued at $10.82). Spartan California Municipal
Income Fund's net assets, including $21,268,000 of unrealized
appreciation, were combined with the fund for total assets after the
acquisition of $925,132,000.
The fund's acquisition of Spartan California Intermediate Municipal
Income Fund was accomplished by an exchange of 5,773,000 shares of the
fund for 6,889,000 shares then outstanding of Spartan California
Intermediate Municipal Income Fund (each valued at $10.09). Spartan
California Intermediate Municipal Income Fund's net assets, including
$2,672,000 of unrealized appreciation, were combined with the fund for
total assets after the acquisition of $999,946,000.
The fund's acquisition of Fidelity California Insured Municipal Income
Fund was accomplished by an exchange of 16,576,000 shares of the fund
for 18,868,000 shares then outstanding of Fidelity California Insured
Municipal Income Fund (each valued at $10.56). Fidelity California
Insured Municipal Income Fund's net assets, including $9,713,000 of
unrealized appreciation, were combined with the fund for total assets
after the acquisition of $1,206,722,000.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity California Municipal Trust and Fidelity
California Municipal Trust II and the shareholders of Spartan
California Municipal Income Fund, Spartan California Municipal Money
Market Fund and Fidelity California Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Spartan California Municipal Income Fund (a fund of Fidelity
California Municipal Trust), Spartan California Municipal Money Market
Fund and Fidelity California Municipal Money Market Fund (funds of
Fidelity California Municipal Trust II) at February 28, 1999, and the
results of their operations, the changes in their net assets and the
financial highlights for the periods indicated, in conformity with
generally accepted accounting principles. These financial statements
and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the funds' management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at February 28, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 7, 1999
DISTRIBUTIONS
The Board of Trustees of Spartan California Municipal Income Fund
voted to pay on April 5, 1999 to shareholders of record at the opening
of business on April 1, 1999, a distribution of $.032 per share
derived from capital gains realized from sales of portfolio
securities.
The Spartan California Municipal Income Fund hereby designates 100% of
the long-term capital gain dividends distributed during the fiscal
year as 20%-rate capital gain dividends.
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
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 Xpress(registered trademark) provides 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.
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+(registered trademark)
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 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
19200 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
8880 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
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
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
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
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
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 75039-5517
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 75039-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments Money
Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Boyce I. Greer, Vice President -
MONEY MARKET FUNDS
Dwight D. Churchill, Vice President -
INCOME FUND
Diane M. McLaughlin, Vice President -
MONEY MARKET FUNDS
Christine J. Thompson, Vice President -
INCOME FUND
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Stanley N. Griffith, 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 *
* INDEPENDENT TRUSTEES
CMS-ANN-0499 73812
1.700925.101
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
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
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
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(registered trademark) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
