NEWSLINE
January 22, 1997
FOUR STATE MUNICIPAL MONEY MARKET FUNDS BEGIN PROXY MAILINGS
California, New York municipal money market funds' shareholder meetings
March 19
Fidelity begins mailing proxy packages today to shareholders of four funds
- - Fidelity and Spartan CA Muni Money Market and Fidelity and Spartan NY
Muni Money Market - asking them to vote on several proposals.
Shareholder approval is necessary to change fundamental investment and
procedural guidelines for mutual funds. This approval is accomplished
through shareholder meetings. However, shareholders do not need to attend
the meetings to cast their votes; the proxy solicitation process allows
them to vote by signing and returning proxy cards that are included with
the proxy statements. The statements detail each proposal and explain the
rationale for why Fidelity is proposing the changes. The proxy cards,
which are similar to ballots, include a listing of each proposal.
Shareholders can vote for or against the proposals, or choose to abstain.
The Fidelity and Spartan CA Muni Money Market and Fidelity and Spartan NY
Muni Money Market shareholder meetings will take place on March 19, 1997.
The proposals appear below along with answers to potential questions
customers may have about the proxy process.
PROXY PROPOSAL
ALL FUNDS:
(1) To elect as Trustees the twelve nominees presented in proposal 1; (2)
To ratify the selection of Price Waterhouse LLP as independent accountants
of the trust; and (3) to amend the Trust Instrument to provide voting
rights based on a shareholder's total dollar investment in a fund, rather
than on the number of shares owned.
FIDELITY CALIFORNIA MUNICIPAL MONEY MARKET FUND:
(1) To adopt a new fundamental investment policy for the fund that would
permit it to invest all of its assets in another open-end investment
company managed by Fidelity Management & Research Company (FMR) or an
affiliate with substantially the same investment objective and policies;
(2) to approve an amended management contract for the fund that would
reduce the management fee payable to FMR by the fund as FMR's assets under
management increase; (3) to amend the fund's fundamental investment
limitations concerning the issuance of senior securities; (4) to amend the
borrowing limitation to require a reduction in borrowings if borrowings
exceed the 33 1/3 % limit for any reason rather than solely because of
decline in net assets; and (5) to clarify the fundamental policy with
respect to underwriting.
SPARTAN CALIFORNIA MUNICIPAL MONEY MARKET:
(1) To amend the fund's fundamental investment limitations concerning the
issuance of senior securities.
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND:
(1) To adopt a new fundamental investment policy for the fund that would
permit it to invest all of its assets in another open-end investment
company managed FMR or an affiliate with substantially the same investment
objective and policies; (2) to approve an amended management contract for
the fund that would reduce the management fee payable to FMR by the fund as
FMR's assets under management increase; (3) to amend the senior securities
limitation to add the ability to issue senior securities to the extent
permitted under the Investment Company Act of 1940; (4) to amend the
borrowing limitation to require a reduction in borrowings if borrowings
exceed the 33 1/3% limit for any reason rather than solely because of
decline in net assets; and (5) to clarify the fundamental policy with
respect to underwriting.
QUESTIONS AND ANSWERS REGARDING THE PROXY PROCESS
Below are answers to potential questions about the proxy solicitation
process, including details about how many votes are necessary for approval,
how shareholders complete their proxy card, and how Fidelity notifies
shareholders of the outcome of the vote.
Q: HOW MANY VOTES ARE NEEDED FOR APPROVAL?
A: To pass any fund proposal at a shareholder meeting, we must have the
approval of the majority of outstanding voting securities. That means we
need votes from at least 50 percent of the total voting securities (known
as "quorum"); and of those votes, at least 66.67% must be affirmative.
Q: WHAT HAPPENS IF A QUORUM ISN'T REACHED?
A: If we do not receive a quorum on this proposal, we must send further
mailings to secure one. This is a costly process.
Q: WHO PAYS FOR THE EXPENSES OF A PROXY?
A: That depends on the type of management contract in effect for a fund.
For example, Spartan funds with an "all-inclusive" management fee have this
expense paid by FMR, whereas funds with the more traditional fee
arrangement may pay their own expenses. However, the reason for the proxy
ultimately determines who pays the expenses. The first page of proxy
statements includes information about proxy expenses.
Q: HOW DO I SIGN THE PROXY CARD?
A: For individual accounts, shareholders should sign exactly as their names
appear on the account registration shown on the card. For joint accounts,
either owner may sign, but the name of the person signing should conform
exactly to a name shown in the registration. For all other accounts, the
person signing must indicate his or her capacity. For example, a custodian
for a UGMA account should sign, "Lee Jones, Custodian."
Q: HOW DO YOU RECOMMEND I VOTE?
A: We cannot recommend how you should vote. However, each fund's Board of
Trustees has reviewed the proposed merger and believes that the proposal is
fair, reasonable, and in the best interest of the fund's shareholders. The
Trustees recommend shareholders vote "For" on the proposals.
Q: HOW ARE OTHER PEOPLE VOTING?
A: We do not have that specific information; the voting is strictly
confidential.
Q: CAN I ATTEND THE MEETING?
A: Yes, you are welcome to attend. However, it is not required.
Q: WHERE AND WHEN IS THE MEETING?
A: The actual meeting time and place is indicated on the first page of the
proxy statement and on the proxy card.
The Fidelity and Spartan CA Muni Money Market Funds' shareholder meeting
is scheduled to take place at 9 a.m. Eastern time on March 19, 1997 at 82
Devonshire Street in Boston.
The Fidelity and Spartan NY Funds' shareholder meeting is scheduled to
take place at 1 p.m. Eastern time on March 19, 1997 at 82 Devonshire Street
in Boston.
Q: I DON'T OWN THAT FUND. WHY DID I GET A PROXY? SHOULD I STILL VOTE?
A: There are two possible reasons:
1. Prior to beginning the solicitation process, the Board of Trustees
approves a "record date." Investors who own shares of a fund on that date
receive a proxy statement and proxy card. If you have liquidated your
account in the fund since the record date, you are still entitled to vote
on all proposals affecting the fund.
2. If you never owned shares of any funds involved in the solicitation,
it's likely that we mistakenly sent the information to you. We are sorry
for any inconvenience and you may disregard the mailing.
Q: I LOST MY PROXY CARD. HOW CAN I GET ANOTHER? CAN YOU FAX IT TO ME?
A: You can complete a form to request duplicate proxy cards either by mail
or fax. (Representatives' managers will provide forms that representatives
can complete to request duplicate proxy cards either by mail or fax. Please
see your manager for further instructions.)
