FIDELITY NEW YORK MUNICIPAL
INCOME FUND (NOW KNOWN AS
SPARTAN(registered trademark) NEW YORK MUNICIPAL
INCOME FUND)
(REGISTERED TRADEMARK)
SPARTAN(registered trademark) NEW YORK MUNICIPAL MONEY MARKET FUND
AND
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
ANNUAL REPORT
JANUARY 31, 1998
CONTENTS
CHECK PAGE NUMBERS !!!
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PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES
FIDELITY NEW YORK MUNICIPAL INCOME FUND (NOW KNOWN AS
SPARTAN NEW YORK MUNICIPAL INCOME FUND)
4 PERFORMANCE
7 FUND TALK: THE MANAGER'S OVERVIEW
10 INVESTMENT CHANGES
11 INVESTMENTS
27 FINANCIAL STATEMENTS
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
31 PERFORMANCE
33 FUND TALK: THE MANAGER'S OVERVIEW
35 INVESTMENT CHANGES
36 INVESTMENTS
46 FINANCIAL STATEMENTS
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
50 PERFORMANCE
52 FUND TALK: THE MANAGER'S OVERVIEW
54 INVESTMENT CHANGES
55 INVESTMENTS
65 FINANCIAL STATEMENTS
NOTES 69 NOTES TO THE FINANCIAL STATEMENTS
REPORT OF INDEPENDENT 76 THE AUDITORS' OPINION
ACCOUNTANTS
DISTRIBUTIONS 77
</TABLE>
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.
To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
As we entered 1998, the pesky economic and currency crises in
Southeast Asia were still very much with us. Adding to these concerns
was the possibility that U.S. corporate earnings might decline in the
face of lower global product demand. But the news wasn't all bad as
low inflation, low interest rates and moderate economic growth
continued to prevail. The bond market performed well, as it benefited
from the favorable economic backdrop and a "flight-to-safety"
mentality on the part of stock investors.
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 there is no assurance that a money market fund will
achieve its goal of maintaining a stable net asset value of $1.00 per
share, and that these types of funds are neither insured nor
guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
FIDELITY NEW YORK MUNICIPAL INCOME FUND
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate 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 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 its yield, to
measure performance. If Fidelity had not reimbursed certain fund
expenses, the total returns and dividends would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY NY MUNI INCOME 10.82% 41.25% 117.33%
LB NY 4 PLUS YEAR 11.50% N/A N/A
MUNI BOND
NEW YORK MUNICIPAL DEBT FUNDS AVERAGE 10.09% 37.36% 111.49%
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 New York 4 Plus Year Municipal Bond Index - a total
return performance benchmark for New York investment-grade municipal
bonds with maturities of at least four years. To measure how the
fund's performance stacked up against its peers, you can compare it to
the New York municipal debt funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. The past one year average represents a peer
group of 94 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 JANUARY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY NY MUNI INCOME 10.82% 7.15% 8.07%
LB NY 4 PLUS YEAR 11.50% N/A N/A
MUNI BOND
NEW YORK MUNICIPAL DEBT FUNDS AVERAGE 10.09% 6.53% 7.74%
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 slightly different figure than
that obtained by averaging the cumulative total returns and
annualizing the result.)
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19980131 19980209 151708 S00000000000001
NY Muni Income LB Municipal Bond
00071 LB015
1988/01/31 10000.00 10000.00
1988/02/29 10108.34 10105.70
1988/03/31 9843.62 9988.47
1988/04/30 9883.33 10064.39
1988/05/31 9932.31 10035.30
1988/06/30 10105.46 10182.12
1988/07/31 10172.16 10248.50
1988/08/31 10203.70 10257.52
1988/09/30 10417.01 10443.18
1988/10/31 10660.66 10626.98
1988/11/30 10547.52 10529.64
1988/12/31 10710.72 10637.36
1989/01/31 10838.39 10857.34
1989/02/28 10752.43 10733.46
1989/03/31 10732.05 10707.80
1989/04/30 11050.32 10962.01
1989/05/31 11246.55 11189.69
1989/06/30 11405.42 11341.64
1989/07/31 11507.84 11496.00
1989/08/31 11446.89 11383.46
1989/09/30 11398.17 11349.54
1989/10/31 11461.67 11488.34
1989/11/30 11626.40 11689.39
1989/12/31 11704.88 11785.01
1990/01/31 11640.08 11729.26
1990/02/28 11716.92 11833.65
1990/03/31 11686.67 11837.20
1990/04/30 11560.97 11751.50
1990/05/31 11821.17 12008.04
1990/06/30 11979.52 12113.59
1990/07/31 12179.93 12291.66
1990/08/31 11979.20 12113.18
1990/09/30 11977.13 12120.09
1990/10/31 12047.70 12339.95
1990/11/30 12262.92 12588.10
1990/12/31 12300.88 12642.86
1991/01/31 12467.77 12812.53
1991/02/28 12546.72 12924.00
1991/03/31 12606.26 12928.65
1991/04/30 12785.39 13100.60
1991/05/31 12877.24 13217.06
1991/06/30 12915.03 13203.98
1991/07/31 13117.68 13364.80
1991/08/31 13278.12 13540.82
1991/09/30 13506.24 13717.12
1991/10/31 13644.90 13840.57
1991/11/30 13704.69 13879.19
1991/12/31 13947.05 14177.04
1992/01/31 13826.38 14209.36
1992/02/29 13885.51 14213.91
1992/03/31 13905.51 14219.17
1992/04/30 14038.32 14345.72
1992/05/31 14254.14 14514.57
1992/06/30 14536.95 14758.12
1992/07/31 14988.46 15200.57
1992/08/31 14795.14 15052.36
1992/09/30 14883.04 15150.81
1992/10/31 14651.30 15001.87
1992/11/30 14989.51 15270.56
1992/12/31 15199.23 15426.47
1993/01/31 15386.05 15605.88
1993/02/28 15987.59 16170.34
1993/03/31 15816.56 15999.42
1993/04/30 15976.40 16160.86
1993/05/31 16078.01 16251.68
1993/06/30 16350.82 16522.92
1993/07/31 16365.54 16544.57
1993/08/31 16741.60 16889.02
1993/09/30 16915.91 17081.39
1993/10/31 16929.28 17114.36
1993/11/30 16749.19 16963.58
1993/12/31 17159.21 17321.68
1994/01/31 17340.68 17519.50
1994/02/28 16825.45 17065.74
1994/03/31 15962.86 16370.82
1994/04/30 16092.57 16509.65
1994/05/31 16266.86 16652.79
1994/06/30 16068.16 16551.04
1994/07/31 16407.42 16854.42
1994/08/31 16471.42 16912.73
1994/09/30 16143.41 16664.46
1994/10/31 15760.92 16368.50
1994/11/30 15276.98 16072.55
1994/12/31 15784.00 16426.31
1995/01/31 16338.44 16895.77
1995/02/28 16898.91 17387.10
1995/03/31 17092.98 17586.88
1995/04/30 17126.42 17607.63
1995/05/31 17745.13 18169.49
1995/06/30 17528.40 18011.42
1995/07/31 17634.27 18182.17
1995/08/31 17889.37 18412.72
1995/09/30 17982.21 18529.27
1995/10/31 18316.40 18798.68
1995/11/30 18661.90 19110.55
1995/12/31 18873.08 19294.21
1996/01/31 18999.71 19439.88
1996/02/29 18802.68 19308.66
1996/03/31 18522.08 19061.89
1996/04/30 18464.00 19007.95
1996/05/31 18454.59 19000.35
1996/06/30 18687.93 19207.26
1996/07/31 18848.44 19382.05
1996/08/31 18791.08 19377.39
1996/09/30 19105.09 19648.68
1996/10/31 19345.98 19870.90
1996/11/30 19711.39 20234.54
1996/12/31 19589.67 20149.56
1997/01/31 19611.70 20187.64
1997/02/28 19816.00 20372.96
1997/03/31 19502.40 20101.39
1997/04/30 19682.73 20269.64
1997/05/31 20028.83 20574.49
1997/06/30 20242.88 20793.61
1997/07/31 20883.18 21369.60
1997/08/31 20625.08 21169.36
1997/09/30 20856.15 21420.64
1997/10/31 21008.54 21558.38
1997/11/30 21124.29 21685.14
1997/12/31 21494.42 22001.53
1998/01/30 21733.05 22228.58
IMATRL PRASUN SHR__CHT 19980131 19980209 151715 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity New York Municipal Income Fund on January 31,
1988. As the chart shows, by January 31, 1998, the value of the
investment would have grown to $21,733 - a 117.33% increase on the
initial investment. For comparison, look at how the Lehman Brothers
Municipal Bond Index - which reflects the performance of the
investment-grade municipal bond market - did over the same period.
With dividends reinvested, the same $10,000 would have grown to
$22,229 - a 122.29% increase.
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.
(CHECKMARK)
TOTAL RETURN COMPONENTS
YEARS ENDED JANUARY 31,
1998 1997 1996 1995 1994
Dividend returns 5.36% 5.20% 5.93% 5.27% 5.78%
Capital appreciation returns 5.46% -1.98% 10.36% -11.05% 6.92%
Total returns 10.82% 3.22% 16.29% -5.78% 12.70%
TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. A dividend return reflects the actual dividends
paid by the fund. A capital appreciation 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 paid by the fund are reinvested.
DIVIDENDS AND YIELD
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PERIODS ENDED JANUARY 31, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR
DIVIDENDS PER SHARE 5.27(CENTS) 31.03(CENTS) 62.35(CENTS)
ANNUALIZED DIVIDEND RATE 4.79% 4.84% 4.98%
30-DAY ANNUALIZED YIELD 4.21% - -
30-DAY ANNUALIZED TAX-EQUIVALENT YIELD 7.41% - -
</TABLE>
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
$12.95 over the past one month, $12.71 over the past six months and
$12.53 over the past one year, you can compare the fund's income over
these three periods. Dividends per share show the income paid by the
fund for a set period and do not reflect any tax reclassifications.
The 30-day annualized YIELD is a standard formula for all 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 43.21% combined effective 1997
federal, state and New York City tax bracket, but does not reflect the
payment of the alternative minimum tax, if applicable.
FIDELITY NEW YORK MUNICIPAL INCOME FUND
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
With investor sentiment, shifting
supply/demand conditions and
Federal Reserve Board policymaking
playing integral roles, municipal
bonds performed quite well for the
12 months that ended January 31,
1998. During this period, the Lehman
Brothers Municipal Bond Index - a
measure of the municipal bond market
- - returned 10.11%. To compare,
the Lehman Brothers Aggregate Bond
Index - a measure of the
investment-grade taxable bond
market in the U.S. - returned
10.72%. Through much of the first
half of 1997, low supply and high
demand helped boost muni bond
prices. One notable hiccup came in
March, when the Fed raised a key
short-term interest rate to try to
stave off inflation. Although
investors anticipated this move, the
market nonetheless reacted negatively.
From April through mid- September,
encouraging economic data -
coupled with the Fed's reluctance to
raise rates further - tempered
concerns. The supply of muni bonds
increased in the second half of
1997 while demand varied, leading to
mixed performance. However,
volatility in Asia toward the end of
the period helped prop up the muni
bond market, because investors felt
that currency devaluations in that
region would translate into cheaper
prices for Asian goods and help
control the inflation that can eat into
bonds' fixed payments. In January
1998, muni bond supply increased
as many issuers took advantage of
lower interest rates to refinance
their debt at lower rates.
Nevertheless, a positive inflation
outlook helped sustain the muni
market.
NOTE TO SHAREHOLDERS: Effective March 24, 1998, Fidelity New York
Municipal Income Fund will change its name to Spartan New York
Municipal Income Fund. The following is an interview with Norm Lind,
Portfolio Manager.
Q. HOW DID THE FUND PERFORM, NORM?
A. For the 12-month period that ended January 31, 1998, the fund had a
total return of 10.82%. To get a sense of how the fund did relative to
its competitors, the New York municipal debt funds average returned
10.09% for the same 12-month period, according to Lipper Analytical
Services. Additionally, the Lehman Brothers New York 4 Plus Year
Municipal Bond Index - which tracks the types of securities in which
the fund invests - returned 11.50% for the same one-year period.
Q. WHY DID THE FUND BEAT ITS PEERS?
A. I think it comes down to three factors. First, the fund held more
bonds issued by New York City than many of its competitors. With the
city's economy so vibrant and its fiscal situation a primary
beneficiary of that economic strength, bonds issued by New York City
were some of the municipal market's best performers. Likewise, the
fund's larger-than-average stake in bonds issued by the state also
helped its performance compared to its competitors. In light of the
state's excellent economic and fiscal health, one of the municipal
credit rating agencies upgraded the credit rating of some of the
state's agencies, which helped boost state-appropriated bond prices.
Finally, the fund's heavy stake in non-callable bonds - which can't be
redeemed by their issuers before maturity - also was a plus. When
interest rates fall, municipal bond issuers often do the same thing
with their bonds that homeowners do with their mortgages: They take
advantage of current lower interest rates by refinancing their older,
more expensive debt. But what's good for municipal issuers is not
always so for investors holding a callable - or redeemable - bond. If
a bond is called, investors often are forced to reinvest the money at
a time when yields are lower. For that reason, non-callable bonds were
very much in investors' favor as interest rates fell.
Q. EVEN THOUGH THE FUND BEAT ITS COMPETITORS, IT LAGGED ITS BENCHMARK
- - THE LEHMAN BROTHERS NEW YORK 4 PLUS YEAR MUNICIPAL BOND INDEX. WHAT
EXPLAINS THAT DIVERGENCE?
A. The index had about twice the amount of general obligation bonds
issued by New York City. Since New York City bonds were among the best
performers in the municipal market, having fewer of them caused the
fund to lag its benchmark. Since I don't like having the fund overly
dependent on the performance of one municipal issuer, I kept New York
City investments at a level I was comfortable with, diversifying the
remainder of the fund across a variety of municipal issuers.
Q. IN JANUARY, 1998, SPARTAN NEW YORK MUNICIPAL INCOME FUND, SPARTAN
NEW YORK INTERMEDIATE MUNICIPAL INCOME FUND AND FIDELITY NEW YORK
INSURED MUNICIPAL INCOME FUND EACH MERGED INTO THIS FUND. WHAT EFFECT
DID THAT HAVE ON THE FUND?
A. One obvious change was that as a result of the merger, the fund's
assets increased by more than $673 million compared to six months ago.
However, the merger had no dramatic effect on my investment strategy.
Over the past several years I managed all four funds with similar
strategies, and many of their investments were generally comparable in
terms of maturity, credit quality, issuer and structure - meaning
factors such as a fund's call feature. That said, the fund had a
slightly larger weighting in intermediate-maturity and insured bonds
at the end of the period than it did prior to the merger because two
of the merged funds emphasized those types of bonds.
Q. WHAT'S AHEAD FOR THE MUNICIPAL MARKET AND THE FUND?
A. The direction of interest rates will be the primary determinant of
municipal performance, and it's anybody's guess where they will be six
months or a year from now. As far as the fund goes, I'll continue to
emphasize bonds that I think offer good value given their yields and
their risk. For example, I'm comfortable sticking with a fairly large
weighting in high-quality bonds for the time being, because I feel
that lower-quality securities currently do not offer enough additional
yield given their risks.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
NORM LIND ON HIS OUTLOOK FOR
NEW YORK'S FISCAL AND
ECONOMIC HEALTH:
"In November, 1997, Standard &
Poor's - one of the major
municipal bond credit rating
agencies - upgraded the credit
rating of certain New York state
agencies in recognition of the
strength of the state's economy
and more sound fiscal situation.
The impressive stock market rally
of 1996 and 1997 - which
translated into improving profits
at Wall Street firms and rising
income for those who work at them
- - had a lot to do with the state's
rising economic and fiscal
fortunes. In my view, the windfall
that came from Wall Street over
the past several years may not be
sustainable in the next several
years. The question then becomes:
Will the state and New York City
plan for a day when the good times
stop? The answer to that will be a
primary factor in determining the
state's and New York City's fiscal
well-being in the years to come."
FUND FACTS
GOAL: high current income free
from federal, state and New
York City income taxes by
investing primarily in longer-
term, investment-grade New
York municipal securities
FUND NUMBER: 071
TRADING SYMBOL: FTFMX
START DATE: July 10, 1984
SIZE: as of January 31, 1998,
more than $1.1 billion
MANAGER: Norm Lind, since
1993; manager, various Fidelity
and Spartan municipal income
funds; joined Fidelity in 1986
(checkmark)
FIDELITY NEW YORK MUNICIPAL INCOME FUND
INVESTMENT CHANGES
TOP FIVE SECTORS AS OF JANUARY 31, 1998
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE SECTORS
6 MONTHS AGO
GENERAL OBLIGATION 37.7 36.5
TRANSPORTATION 16.5 15.5
SPECIAL TAX 11.2 12.8
WATER & SEWER 8.6 8.9
INDUSTRIAL DEVELOPMENT 6.1 5.3
AVERAGE YEARS TO MATURITY AS OF JANUARY 31, 1998
6 MONTHS AGO
YEARS 13.4 14.5
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 JANUARY 31, 1998
6 MONTHS AGO
YEARS 7.2 7.6
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 JANUARY 31, 1998 AS OF JULY 31, 1997
AAA 40.8%
AA, A 29.9%
BAA 22.7%
NON-RATED 1.0%
SHORT-TERM
INVESTMENTS 5.6%
AAA 24.3%
AA, A 36.1%
BAA 31.9%
NON-RATED 0.0%
SHORT-TERM
INVESTMENTS 7.7%
ROW: 1, COL: 1, VALUE: 40.8
ROW: 1, COL: 2, VALUE: 29.9
ROW: 1, COL: 3, VALUE: 22.7
ROW: 1, COL: 4, VALUE: 0.0
ROW: 1, COL: 5, VALUE: 2.0
ROW: 1, COL: 6, VALUE: 4.6
ROW: 1, COL: 1, VALUE: 24.3
ROW: 1, COL: 2, VALUE: 36.1
ROW: 1, COL: 3, VALUE: 31.9
ROW: 1, COL: 4, VALUE: 0.0
ROW: 1, COL: 5, VALUE: 7.7
WHERE MOODY'S RATINGS ARE NOT AVAILABLE, WE HAVE USED S&P RATINGS.
AMOUNTS SHOWN ARE AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
FIDELITY NEW YORK MUNICIPAL INCOME FUND
INVESTMENTS JANUARY 31, 1998
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
MUNICIPAL BONDS - 94.4%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - 90.9%
Albany County Gen. Oblig.:
5.85% 6/1/13 (FGIC Insured) Aaa $ 1,275,000 $ 1,369,554
Rfdg. 5% 10/1/12 (FGIC Insured) Aaa 6,600,000 6,813,510
Brookhaven Gen. Oblig. 5.30%
10/1/04 (FGIC Insured) Aaa 1,075,000 1,151,981
Buffalo Swr. Auth. Rev. Rfdg. (Swr. Sys.)
Series G, 5% 7/1/12 (FGIC Insured) Aaa 2,700,000 2,711,718
Canandaigua School Dist. Rfdg.
5.25% 6/1/07 (AMBAC Insured) Aaa 515,000 551,580
Cherry Valley Springfield Central School Dist.:
7.80% 5/1/14 (MBIA Insured) Aaa 435,000 578,085
7.80% 5/1/15 (MBIA Insured) Aaa 435,000 581,952
7.80% 5/1/16 (MBIA Insured) Aaa 435,000 584,118
7.80% 5/1/17 (MBIA Insured) Aaa 435,000 587,768
7.80% 5/1/18 (MBIA Insured) Aaa 434,000 589,728
Erie County Gen. Oblig. Series A:
6% 2/1/04 (FGIC Insured) Aaa 1,100,000 1,209,879
6% 2/1/05 (FGIC Insured) Aaa 1,000,000 1,111,300
6% 2/1/06 (FGIC Insured) Aaa 1,030,000 1,156,443
Erie County Wtr. Auth. Impt. & Extension
Rev. 3rd Series, 6.10% 12/1/04
(Escrowed to Maturity) (c) Aa 2,000,000 2,166,480
Erie County Wtr. Auth. Wtr. Rev. Rfdg.
(Cap. Appreciation) (Fourth Resolution)
0% 12/1/17 (AMBAC Insured) Aaa 1,210,000 292,094
Metropolitan Trans. Auth. Dedicated Tax Fund
Series A, 5.25% 4/1/26 (MBIA Insured) Aaa 3,000,000 3,021,240
Metropolitan Trans. Auth. Rev. (Commuter Facs.):
Series E, 5.50% 7/1/09 (AMBAC Insured) Aaa 2,705,000 2,918,425
Series R, 5.40% 7/1/10 (f) Baa1 2,960,000 3,039,802
Metropolitan Trans. Auth. Svc. Contract:
(Cap. Appreciation) (Trans. Facs.)
Series 7, 0% 7/1/10 Baa1 9,500,000 5,198,210
(Commuter Facs.) Series 3, 7.375% 7/1/08 Baa1 5,400,000 6,601,230
Rev. Rfdg. Series R, 5.30% 7/1/09 (f) Baa1 4,000,000 4,115,720
Series 3, 7.375% 7/1/08 Baa1 1,830,000 2,237,084
(Trans.Facs.):
Rfdg.:
Series 5, 6.90% 7/1/05 Baa1 4,100,000 4,502,579
Series 7, 5.45% 7/1/07 Baa1 4,930,000 5,260,113
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Metropolitan Trans. Auth. Trans. Facs. Rev.
Rfdg.:
(Cap. Appreciation) Series N,
0% 7/1/11 (FGIC Insured) Aaa $ 5,980,000 $ 3,174,961
Series K:
6.30% 7/1/06 (MBIA Insured) Aaa 10,150,000 11,587,342
6.30% 7/1/07 (MBIA Insured) Aaa 5,000,000 5,756,400
Series A:
6% 7/1/16 (FSA Insured) Aaa 9,090,000 9,994,091
5.75% 7/1/21 (MBIA Insured) Aaa 10,000,000 10,811,200
6.10% 7/1/21 (FSA Insured) Aaa 8,990,000 9,945,907
6.10% 7/1/26 (FSA Insured) Aaa 3,250,000 3,583,645
Monroe County Gen. Oblig. 6% 6/1/05 Aa2 2,155,000 2,404,635
Monroe County Pub. Impt.:
7% 6/1/03 (FGIC Insured) Aaa 1,000,000 1,144,890
6.10% 3/1/04 (MBIA Insured) Aaa 5,300,000 5,715,891
6% 6/1/04 Aa2 1,510,000 1,669,969
6.50% 6/1/04 Aa2 2,310,000 2,602,261
7% 6/1/04 (FGIC Insured) Aaa 2,150,000 2,507,072
6.50% 6/1/05 Aa2 3,450,000 3,933,966
6.50% 6/1/06 Aa2 3,745,000 4,316,150
5% 6/1/07 (AMBAC Insured) Aaa 1,500,000 1,585,080
6.50% 6/1/07 (AMBAC Insured) Aaa 905,000 1,056,560
6.50% 6/1/07 (AMBAC Insured)
(Escrowed to Maturity) (c) Aaa 95,000 110,910
Monroe Woodbury Central School Dist.:
5.625% 5/15/22 (MBIA Insured) Aaa 1,245,000 1,306,316
5.625% 5/15/24 (MBIA Insured) Aaa 2,645,000 2,764,422
Nassau County Rfdg. (Combined Swr. Dist.)
Series F, 5.30% 7/1/07 (MBIA Insured) Aaa 350,000 374,717
Nassau County Gen. Impt.:
Rfdg. Series A, 6.50% 5/1/07 (FGIC Insured) Aaa 4,000,000
4,640,040
Series R, 5.125% 11/1/05 (FGIC Insured) Aaa 2,565,000 2,717,053
Series T, 5.20% 9/1/11 (FGIC Insured) Aaa 2,695,000 2,800,509
Nassau County Gen. Oblig.:
Rfdg. Series A, 6% 7/1/09 (FGIC Insured) Aaa 3,320,000 3,749,907
Series P, 6.30% 11/1/03 (FGIC Insured) Aaa 1,000,000 1,115,620
Series U, 5.25% 11/1/11 (AMBAC Insured) Aaa 1,500,000 1,565,670
Series U, 5.25% 11/1/15 (AMBAC Insured) Aaa 2,150,000 2,213,017
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Edl. Construction Fund Rev.
Series A, 6.25% 10/1/03 (MBIA Insured) Aaa $ 1,895,000 $ 2,108,529
New York City Gen. Oblig. Bonds:
Rfdg.:
Series A:
7% 8/1/03 Baa1 2,000,000 2,240,440
6.25% 8/1/08 Baa1 1,000,000 1,105,230
Series B:
5.70% 8/15/02 Baa1 2,335,000 2,462,351
6.20% 8/15/06 Baa1 945,000 1,038,857
Series C:
5.70% 8/15/02 Baa1 1,310,000 1,381,447
6% 2/1/22 Baa1 3,500,000 3,685,080
Series E:
6.50% 2/15/06 Baa1 1,000,000 1,115,140
6.20% 8/1/07 (MBIA Insured) Aaa 1,750,000 1,992,988
Series F, 6% 8/1/16 Baa1 7,750,000 8,242,203
Series H:
6% 8/1/07 (FGIC Insured) Aaa 6,000,000 6,740,700
6% 8/1/14 Baa1 5,000,000 5,317,250
6% 8/1/17 Baa1 1,000,000 1,058,820
Series I, 5.875% 3/15/12 Baa1 5,000,000 5,332,550
Series J, 6.125% 8/1/12 Baa1 1,000,000 1,093,170
Series A-1, 6.25% 8/1/03 (AMBAC Insured) Aaa 9,200,000 10,166,552
Series B:
7.50% 2/1/02 Baa1 1,000,000 1,113,120
7.50% 2/1/03 Baa1 5,000,000 5,593,550
7.50% 2/1/07 Baa1 5,500,000 6,148,615
7.20% 8/15/08 Baa1 1,000,000 1,143,480 6.50% 8/15/11 Baa1
1,000,000 1,137,520
5.875% 8/15/13 Baa1 3,870,000 4,087,726
Series C, 6.40% 8/1/03 Baa1 6,000,000 6,522,540
Series D:
5.75% 2/15/08 Baa1 1,000,000 1,063,250
5.375% 8/1/17 Baa1 2,500,000 2,506,425
5.25% 8/1/21 (MBIA Insured) Aaa 6,000,000 6,043,980
Series E:
6% 8/1/08 (FGIC Insured) Aaa 8,000,000 8,923,360
6% 8/1/26 Baa1 3,750,000 3,985,500
Series F:
3% 11/15/00 (MBIA Insured) Aaa 1,000,000 973,120
5.75% 2/1/15 Baa1 2,500,000 2,600,975
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Gen. Oblig. Bonds: - continued
Series G, 6% 10/15/26 Baa1 $ 5,000,000 $ 5,266,650
Series H:
7% 2/1/05 Baa1 1,645,000 1,810,569
7% 2/1/05
(Pre-Refunded to 2/1/02 @ 101.50) (c) Aaa 385,000 431,393
7% 2/1/06 Baa1 420,000 462,273
7% 2/1/06
(Pre-Refunded to 2/1/02 @ 101.50) (c) - 3,080,000 3,445,072Series
I, 6.125% 4/15/11 Baa1 25,000,000 27,275,250
Series K, 6.25% 4/1/11 Baa1 1,000,000 1,095,120
Series L, 5.75% 8/1/12 Baa1 3,700,000 3,894,620
New York City Ind. Dev. Agcy. Civic Facs. Rev.
(USTA Nat'l. Tennis Ctr. Proj.)
6.40% 11/15/08 (FSA Insured) Aaa 1,000,000 1,132,860
New York City Ind. Dev. Agcy. Spl. Facs. Rev.:
(American Airlines, Inc. Proj.):
Series 1990, 8% 7/1/20 (b) Baa2 4,325,000 4,533,854
6.90% 8/1/24 (b) Baa2 10,000,000 11,228,200
(Terminal One Group Assoc. Proj.):
5.70% 1/1/04 (b) A 1,500,000 1,599,345
6% 1/1/08 (b) A 500,000 538,525
6% 1/1/15 (b) A 12,560,000 13,313,600
New York City Ind. Dev. Auth. Ind. Dev. Rev.
(Japan Airlines Co. Ltd. Proj.)
Series 91, 6% 11/1/15 (FSA Insured)
LOC Morgan Guaranty Trust Co., NY (b) Aaa 3,000,000 3,244,800
New York City Muni. Assistance Corp.:
Rfdg.:
Series D, 6% 7/1/05 (AMBAC Insured) Aaa 10,000,000 11,143,000
Series E:
6% 7/1/03 Aa2 1,000,000 1,091,040
6% 7/1/04 Aa2 14,500,000 15,977,115
6% 7/1/05 Aa2 12,945,000 14,381,118
Series I, 5.25% 7/1/02 Aa2 2,250,000 2,356,943
Series J, 5.75% 7/1/03 Aa2 1,000,000 1,079,020
Series G, 5.50% 7/1/04 Aa2 2,800,000 3,007,172
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev.:
Rfdg. Series A, 5.125% 6/15/21 A2 $ 8,450,000 $ 8,433,100
Series A, 7% 6/15/16 (FGIC Insured)
(Pre-Refunded to 6/15/01 @ 101.50) (c) Aaa 500,000 554,140
Series B:
5.375% 6/15/07 (AMBAC Insured) Aaa 500,000 531,945
5.875% 6/15/26 A2 21,250,000 22,615,100
5.50% 6/15/27 (MBIA Insured) Aaa 4,275,000 4,451,130
Series C, 7.375% 6/15/09
(Pre-Refunded to 6/15/99 @ 101.50) (c) A2 1,850,000 1,964,608
New York City Trust Cultural Resources Rev.:
(American Museum of Natural History)
Series A, 5.65% 4/1/22 (MBIA Insured) Aaa 4,850,000 5,107,438
(New York Botanical Gardens)
5.75% 7/1/16 (MBIA Insured) Aaa 1,250,000 1,321,900
New York State Crossover Rfdg.
7.50% 11/15/00 A2 1,000,000 1,094,180
New York State Dorm. Auth. Lease Rev. Rfdg.
(State Univ. Dorm. Facs.) Series A:
6% 7/1/03 (AMBAC Insured) Aaa 7,370,000 8,044,724
6% 7/1/04 (AMBAC Insured) Aaa 5,225,000 5,751,105
6% 7/1/05 (AMBAC Insured) (e) Aaa 2,240,000 2,488,506
5.30% 7/1/24 (AMBAC Insured) Aaa 3,150,000 3,164,427
New York State Dorm. Auth. Rev.:
(Cap. Appreciation) (Manhattanville College)
0% 7/1/10 (MBIA Insured) Aaa 2,175,000 1,217,913
(Champlain Valley Physicians):
6% 7/1/08 (Connie Lee Insured) Aaa 600,000 673,362
6% 7/1/09 (Connie Lee Insured) Aaa 370,000 416,853
6% 7/1/10 (Connie Lee Insured) Aaa 250,000 285,545
(City Univ. Sys. Consolidated):
Series A:
5.50% 7/1/04 Baa1 2,000,000 2,102,000
5.50% 7/1/05 (f) Baa1 2,000,000 2,109,320
5.75% 7/1/09 Baa1 5,000,000 5,448,400
Series C:
6.25% 7/1/05 (AMBAC Insured) Aaa 6,320,000 7,099,382
7.50% 7/1/10 Baa1 4,000,000 4,991,400
Series D, 7% 7/1/09 Baa1 6,000,000 7,194,120
Series 1, 5% 7/1/11 Baa1 11,095,000 11,059,052
(Second Gen.) Series A, 5.75% 7/1/07 Baa1 1,965,000 2,141,280
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
(Columbia Univ.) Series A, 5.75% 7/1/09 Aaa $ 9,700,000 $ 10,870,596
(Ideal Sr. Living Hsg.)
7.625% 8/1/28 (MBIA Insured) Aaa 2,000,000 2,107,040
(Ithaca College)
5.25% 7/1/26 (AMBAC Insured) Aaa 9,805,000 9,808,922
(Judicial Facs. Lease) Series B, 7% 4/15/16 Baa1 2,000,000
2,171,860
(Mental Health Svcs. Facs.):
Series A:
6% 2/15/01 Baa1 500,000 526,075
5.75% 8/15/11 Baa1 3,000,000 3,164,340
(New York & Presbyterian Hosp.) 4.40% 8/1/13
(AMBAC Insured) Aaa 5,000,000 4,980,750
(New York Law School) 7.625%
7/1/09 (BIG Insured) Aaa 3,090,000 3,296,196
Rfdg.:
(City Univ. Sys. Consolidated):
Series A, 5.75% 7/1/07 Baa1 500,000 539,295
Series C, 8.20% 7/1/14 Baa1 1,000,000 1,035,630
Series D, 5.75% 7/1/12 Baa1 4,230,000 4,615,903
Series D, 8.20% 7/1/12 Baa1 1,260,000 1,305,688
Series U, 6.25% 7/1/03 Baa1 525,000 573,253
5.50% 7/1/16 (AMBAC Insured) Aaa 2,500,000 2,619,975
(Colgate Univ.):
6% 7/1/16 (MBIA Insured) Aaa 1,450,000 1,653,450
6% 7/1/21 (MBIA Insured) Aaa 2,500,000 2,884,900
(FIT Student Hsg.):
5.75% 7/1/03 (AMBAC Insured) Aaa 1,590,000 1,716,437
5.75% 7/1/04 (AMBAC Insured) Aaa 1,680,000 1,825,740
5.75% 7/1/05 (AMBAC Insured) Aaa 1,650,000 1,801,553
5.75% 7/1/06 (AMBAC Insured) Aaa 1,500,000 1,647,945
(Mental Health Svcs. Facs.)
Series B, 5.75% 2/15/11 Baa1 2,550,000 2,689,689
(New York Hosp. Med. Ctr.)
Series B, 5.25% 2/1/07 (AMBAC Insured) Aaa 5,500,000 5,698,055
(State Univ. Edl. Facs.):
Series A:
6.50% 5/15/04 A3 3,000,000 3,357,630
6.50% 5/15/05 A3 7,080,000 7,992,895
6.50% 5/15/06 A3 3,400,000 3,876,340
5.50% 5/15/07 (FGIC Insured) Aaa 6,700,000 7,268,964
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. Rev.: - continued
Rfdg.:
(State Univ. Edl. Facs.):
Series A:
5.50% 5/15/09 (AMBAC Insured) Aaa $ 6,000,000 $ 6,562,800
5.25% 5/15/15 A3 7,000,000 7,307,440
6% 5/15/16 A3 8,000,000 8,534,640
6% 5/15/25 A3 2,725,000 2,892,588
Series B:
5.25% 5/15/05 A3 2,250,000 2,366,483
5.25% 5/15/11 (FGIC Insured) Aaa 2,950,000 3,120,009
7.50% 5/15/11 A3 3,445,000 4,393,167
7.375% 5/15/14 A3 275,000 298,023
(Vassar College):
6% 7/1/03 Aa3 300,000 328,074
6% 7/1/04 Aa3 745,000 821,772 6% 7/1/06 Aa3 850,000
954,423
(St. Josephs Hosp. Health Ctr.):
6% 7/1/08 (MBIA Insured) Aaa 1,260,000 1,409,612
6% 7/1/09 (MBIA Insured) Aaa 1,500,000 1,671,630
(St. Vincent's Hosp. & Med. Ctr.):
6% 2/1/03 (AMBAC Insured) Aaa 1,820,000 1,979,232
6% 8/1/03 (AMBAC Insured) Aaa 1,875,000 2,053,950
(Univ. of Rochester - Strong Memorial Hosp.):
5.10% 7/1/04 A1 1,470,000 1,533,357
5.20% 7/1/05 A1 1,000,000 1,052,050
New York State Energy Research & Dev. Auth. Facs.
Rev. Rfdg. (Consolidated Edison Co.)
Series A, 6.10% 8/15/20 A1 10,600,000 11,457,646
New York State Energy Research & Dev. Auth. Gas
Facs. Rev. Rfdg. (Brooklyn Union Gas Co. Proj.)
Series A, 5.50% 1/1/21 (MBIA Insured) Aaa 1,000,000 1,038,180
New York State Energy Research & Dev. Auth. Poll.
Cont. Rev.:
(Central Hudson Gas) Series B,
7.375% 10/1/14 (FGIC Insured) Aaa 2,250,000 2,435,603
Rfdg. (New York Gas & Electric)
Series E, 5.90% 12/1/06 (MBIA Insured) Aaa 1,000,000 1,118,260
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Envir. Facs. Corp. Poll. Cont.
Rev. (State Wtr. Revolving Fund):
(Pooled Loan) Series B, 5.20% 5/15/14 Aaa $ 2,220,000 $ 2,358,017
Series A:
6.80% 6/15/01 Aa2 2,000,000 2,174,480
6.90% 6/15/02 Aa 265,000 292,875
6.90% 6/15/02
(Pre-Refunded to 6/15/01 @ 102) (c) Aa 835,000 925,071
7%, 6/15/12 Aa 190,000 210,134
7% 6/15/12
(Pre-Refunded to 6/15/01 @ 102) (c) Aa 3,885,000 4,316,157
5.85% 7/15/15 Aaa 3,060,000 3,297,793
Series D:
5.90% 5/15/01 Aaa 1,000,000 1,062,860
6.10% 5/15/03 Aaa 5,480,000 6,004,710
6.20% 11/15/04 Aaa 2,500,000 2,806,300
6.30% 5/15/05 Aaa 2,000,000 2,266,500
6.30% 11/15/05 Aaa 2,725,000 3,107,536
6.40% 11/15/06 Aaa 2,940,000 3,373,709
Series E:
6.25% 6/15/05 Aa 1,200,000 1,354,116
6.25% 6/15/05
(Pre-Refunded to 6/15/04 @ 101.50) (c) Aa 900,000 1,012,401
6.50% 6/15/14 Aa 130,000 141,626
6.50% 6/15/14
(Pre-Refunded to 6/15/01 @ 102) (c) Aa 3,370,000 3,691,498
New York State Envir. Facs. Corp. Resources
Recovery Rev. (Huntington Proj.) Series A,
7.50% 10/1/12 Baa1 12,500,000 13,284,500
New York State Hsg. Fin. Agcy. Rev. (St. John
Village Proj.) 8.25% 5/1/09 - 4,925,000 5,019,314
New York State Local Gov't. Assistance Corp.:
Rfdg.:
Series C, 5.50% 4/1/17 A3 13,675,000 14,598,473
Series E, 5.25% 4/1/16 A3 23,600,000 24,525,592
Series A, 7% 4/1/04 Aaa 2,000,000 2,214,660
Series A, 5.80% 4/1/10 A3 4,585,000 4,901,457
Series B, 6% 4/1/18 A3 17,245,000 18,411,969
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Med. Care Facs. Fin. Agcy. Rev.:
(Beth Israel Med. Ctr.) Series A,
7.50% 11/1/10 (MBIA Insured) Aaa $ 4,000,000 $ 4,442,600
(Long-Term Health Care) Series A,
6.80% 11/1/14 (FSA Insured) Aaa 1,250,000 1,383,013
(Mary Imogene Basset Hosp.) Series A,
7.125% 11/1/20 (MBIA Insured) Aaa 2,290,000 2,523,488
(Mental Health Svcs. Facs.):
Series A:
7.50% 2/15/21 Baa1 50,000 55,439
7.50% 2/15/21 (Pre-Refunded to
2/15/01 @ 102) (c) Aaa 85,000 95,047
Series B, 7.875% 8/15/20 Baa1 445,000 491,422
Series D, 7.40% 2/15/18 Baa1 450,000 502,439
(North Shore Univ. Hosp. Mtg. Proj.) Series A:
7.25% 11/1/11 (MBIA Insured) Aaa 3,200,000 3,513,216
7.20% 11/1/20 (MBIA Insured) Aaa 6,000,000 6,561,540
Rfdg. (Mental Health Svcs. Facs.):
Series A, 8.875% 8/15/07 Baa1 1,735,000 1,775,842
Series B, 7.875% 8/15/20
(Pre-Refunded to 8/15/00 @ 102) (c) Aaa 755,000 840,330
Rfdg. (Presbyterian Hosp.)
Series A, 5.25% 8/15/14 Aa2 3,000,000 3,067,200
New York State Med. Care Facs. Fin. Agcy. Spl.
Oblig. (Mental Health Svcs. Facs. Impt.)
Series A, 8.40% 5/1/06 Aaa 1,000,000 1,278,230
New York State Mtg. Agcy. Rev.:
(Homeowner Mtg.):
Series HH-3, 7.95% 4/1/22 (b) Aa2 2,500,000 2,661,050
Series SS, 7.95% 10/1/22 (b) Aa2 2,415,000 2,575,622
Series 53, 5.90% 10/1/17 Aa2 2,000,000 2,103,800
Series 60, 6.05% 4/1/26 (b) Aaa 7,170,000 7,598,909
5.50% 4/1/19 (AMBAC Insured) (b) Aaa 4,500,000 4,569,930
New York State Pwr. Auth. Rev. & Gen. Purp.
Rfdg. Series W, 6.50% 1/1/08 Aa2 250,000 291,250
New York State Thruway Auth. Gen. Rev.:
Series A, 5.80% 1/1/06 Aa3 3,000,000 3,202,020
Series D, 5.375% 1/1/27 Aa3 3,000,000 3,051,870
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Thruway Auth. Hwy. & Bridge
Trust Fund:
Series A, 6.25% 4/1/04 (MBIA Insured) Aaa $ 7,840,000 $ 8,770,530
Series B:
6% 4/1/03 (AMBAC Insured) Aaa 9,240,000 10,108,560
6% 4/1/04 (MBIA Insured) Aaa 8,900,000 9,836,013
6.40% 4/1/04 (FGIC Insured) Aaa 1,000,000 1,123,890
5.50% 4/1/09 (FSA Insured) Aaa 2,000,000 2,150,060
New York State Thruway Auth. Svc. Contract Rev.
(Local Hwy. & Bridge):
5.75% 4/1/08 Baa1 1,000,000 1,067,750
6% 4/1/11 Baa1 4,000,000 4,358,280
New York State Urban Dev. Corp. Rev.:
(Correctional Cap. Facs.):
Series 1, 7.75% 1/1/14
(Pre-Refunded to 1/1/00 @ 102) (c) Aaa 1,000,000 1,089,640
Series 5, 5.90% 1/1/08 Baa1 1,455,000 1,569,014
Rfdg.:
(Correctional Cap. Facs.)
Series A, 6.30% 1/1/03 Baa1 700,000 760,445
(Syracuse Univ. Ctr.) 5.20% 1/1/03 Baa1 1,000,000 1,027,890
(Sports Fac. Assistance Prog.)
Series A, 6.25% 4/1/06 (MBIA Insured) Aaa 2,515,000 2,859,102
Niagara Falls Wtr. Treatment Plant 7% 11/1/13
(MBIA Insured) (b) Aaa 1,000,000 1,167,030
Niagara Falls (Pub. Impt.):
7.50% 3/1/08 (MBIA Insured) Aaa 995,000 1,243,481
7.50% 3/1/10 (MBIA Insured) Aaa 1,155,000 1,462,415
7.50% 3/1/11 (MBIA Insured) Aaa 1,245,000 1,582,432
7.50% 3/1/16 (MBIA Insured) Aaa 1,060,000 1,388,112
7.50% 3/1/17 (MBIA Insured) Aaa 1,200,000 1,584,060
Niagara Falls Bridge Commission Toll Rev. Rfdg.
Series B, 5.25% 10/1/15 (FGIC Insured) Aaa 10,000,000 10,482,000
North Hempstead Gen. Oblig. Rfdg. Series B,
6.10% 4/1/06 (FGIC Insured) Aaa 2,000,000 2,245,800
Onondaga County Ind. Dev. Agcy. Swr. Facs.
Rev. (Bristol-Meyers Squibb Co. Proj.)
5.75% 3/1/24 (b) Aaa 9,000,000 9,979,920
Rockland County Gen. Oblig. 6% 8/15/05
(AMBAC Insured) Aaa 1,475,000 1,647,044
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Suffolk County Gen. Oblig.:
Rfdg. (Southwest Swr. Dist.)
Series II, 6% 2/1/04 (MBIA Insured) Aaa $ 4,570,000 $ 5,001,088
Series A, 6% 8/1/05 (AMBAC Insured) Aaa 3,380,000 3,756,464
Suffolk County Ind. Dev. Agcy. Civic Fac. Rev.
(Downing College) 8.25% 12/1/20
(Pre-Refunded to 12/1/00 @ 102) (c) BBB 955,000 1,080,764
Suffolk County Ind. Dev. Agcy. Rev. Rfdg.
(Southwest Swr. Sys.):
6% 2/1/07 (FGIC Insured) Aaa 3,090,000 3,479,340
6% 2/1/08 (FGIC Insured) Aaa 2,500,000 2,826,075
Suffolk County Wtr. Auth. Wtrwks. Rev. Rfdg.:
Series C, 5.75% 6/1/10 (AMBAC Insured)
(Pre-Refunded to 6/1/02 @ 102) (c) Aaa 30,000 32,507
(Sr. Lien):
5.10% 6/1/09 (MBIA Insured) Aaa 2,000,000 2,112,040
5.10% 6/1/10 (MBIA Insured) Aaa 4,500,000 4,725,585
(Sub-Lien) 6% 6/1/17 (MBIA Insured) Aaa 6,560,000 7,526,485
7.375% 6/1/12 (AMBAC Insured) Aaa 30,000 31,249
Syracuse Ind. Dev. Agcy. Civic Facs. Rev.
(St. Joseph's Hosp. Health Ctr. Proj.) 7.50%
6/1/18 (Pre-Refunded to 6/1/01 @ 102) (c) Baa1 1,265,000 1,423,631
Syracuse Ind. Dev. Agcy. Parking Facs. Rev.
(Syracuse Econ. Dev. Corp.) Series A, 7.70%
6/1/15 (Pre-Refunded to 6/1/99 @ 102) (c) - 2,445,000 2,613,387
Triborough Bridge & Tunnel Auth. Rev.:
(Convention Ctr. Proj.) Series E:
7.25% 1/1/10 Baa1 9,870,000 12,091,737
6% 1/1/11 Baa1 4,000,000 4,448,560
(Gen. Purp.):
Series A:
6% 1/1/11 Aa3 500,000 565,875
4.75% 1/1/14 Aa3 1,685,000 1,679,086
Series X, 6.20% 1/1/03 Aa3 1,000,000 1,090,150
Series Y, 5.50% 1/1/03 Aa3 1,500,000 1,591,245
Rfdg.:
Series A, 5.25% 1/1/28 Aa3 5,400,000 5,455,566
Series B:
6% 1/1/03 Aa3 2,500,000 2,707,150
6% 1/1/04 Aa3 5,000,000 5,462,850
5% 1/1/14 Aa3 2,000,000 2,048,280
MUNICIPAL BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Triborough Bridge & Tunnel Auth. Rev.: - continued
(Gen. Purp.):
Rfdg.:
Series Q, 6.75% 1/1/09 Aa3 $ 1,000,000 $ 1,190,020
Series Y, 6% 1/1/12 Aa3 14,110,000 15,964,477
Series Y, 5.50% 1/1/17 Aa3 18,700,000 20,144,949
Series R, 6% 1/1/20 (MBIA Insured)
(Pre-Refunded to 1/1/00 @ 100) (c) Aaa 90,000 93,524
United Nations Dev. Corp. Rev. Rfdg.
Series B, 5.60% 7/1/26 A2 4,000,000 4,016,920
Upper Mohawk Valley Regional Wtr. Fin. Auth. Rfdg.
Series A, 5.125% 10/1/26 (FSA Insured) Aaa 5,000,000 5,004,250
Yonkers Gen. Oblig. Series A:
6% 8/1/04 (FGIC Insured) Aaa 1,020,000 1,124,530
6% 8/1/05 (FGIC Insured) Aaa 1,080,000 1,198,080
1,034,275,128
NEW YORK & NEW JERSEY - 2.5%
New York & New Jersey Port Auth.:
Consolidated 73rd Series, 6.75% 10/15/06 (b) A1 2,000,000 2,159,080
Consolidated 85th Series, 5.20% 9/1/15 A1 2,400,000 2,498,376
Consolidated 85th Series, 5.20% 9/1/16 A1 2,000,000 2,084,980
Consolidated 85th Series, 5.20% 9/1/18 A1 1,675,000 1,746,389
Consolidated 99th Series,
7% 11/1/04 (FGIC Insured) Aaa 5,040,000 5,860,764
Consolidated 109th Series, 5.375% 1/15/32 A1 12,500,000
12,801,250
Rfdg. Consolidated 107th Series,
6% 10/15/06 (b) A1 1,530,000 1,691,629
28,842,468
PUERTO RICO - 1.0%
Puerto Rico Commonwealth Urban Renewal &
Hsg. Corp. Commonwealth Appropriation
Rfdg. 7.875% 10/1/04 Baa 6,270,000 6,745,580
Puerto Rico Tel. Auth. Rev. 7.255% 1/6/15
(MBIA Insured) INFL (d) Aaa 4,800,000 5,094,432
11,840,012
TOTAL MUNICIPAL BONDS
(cost $999,954,015) 1,074,957,608
MUNICIPAL NOTES (A) - 5.6%
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - 5.2%
Chautauqua County Ind. Dev. Agcy. Rev.
(Busch Industries, Inc. Proj.)
3.825%, LOC Marine Midland Bank, NA, VRDN - $ 600,000 $ 600,000
Erie County Ind. Dev. Auth. Ind. Dev. Rev.
(National Wire Prods.) Series E,
3.60%, LOC Marine Midland Bank,
NA, VRDN (b) A-1 100,000 100,000
New York City Gen. Oblig.:
Sub Series A-4, 3.70%,
LOC Chase Manhattan Bank, VRDN VMIG 1 200,000 200,000
Series A-7, 3.65%,
LOC Morgan Guaranty Trust Co., NY, VRDN VMIG 1 900,000 900,000
Series E-4, 3.65%,
LOC State Street Bank & Trust Co., VRDN VMIG 1 3,800,000 3,800,000
New York City Muni. Assistance Corp.
Series K-1, 3.45%, LOC Westdeutsche
Landesbank Girozentrale, VRDN VMIG 1 1,100,000 1,100,000
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr.
Sys. Rev. Series G, 3.65% (FGIC Insured) VRDN VMIG 1 3,500,000
3,500,000
New York City Trust Cultural Resources Rev.
(Museum of Broadcasting)
3.40%, LOC KredietBank, NV, VRDN VMIG 1 2,500,000 2,500,000
New York State Dorm. Auth. Rev. (Cornell Univ.)
Series 1990 B, 3.50% (BPA Morgan
Guaranty Trust Co., NY) VRDN VMIG 1 1,100,000 1,100,000
New York State Energy Research & Dev. Auth.
Elec. Facs. Rev. (Long Island Lighting Co.)
Series 1994 A, 3.50%, LOC Union
Bank of Switzerland, VRDN (b) VMIG 1 1,100,000 1,100,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev. (Niagara Mohawk Pwr. Corp. Proj.):
Series 1985-B, 3.65%, LOC
Toronto-Dominion Bank, VRDN P-1 3,000,000 3,000,000
Series 1985-C, 3.65%, LOC Mitsubishi
Trust & Banking Corp., VRDN P-1 1,100,000 1,100,000
Series 1986-A, 3.70%, LOC Citibank, VRDN P-1 7,500,000 7,500,000
Series 1987-B, 3.95%, LOC
Morgan Guaranty Trust Co., NY, VRDN A-1+ 4,400,000 4,400,000
Series 1988-A, 3.95%, LOC
Morgan Guaranty Trust Co., NY, VRDN A-1+ 4,500,000 4,500,000
New York State Hsg. Fin. Agcy. Rev.:
(Tribeca Park)
Series 1997 A, 3.50%, LOC Bayerische
Hypotheken-und Wechsel Bank, VRDN (b) VMIG 1 20,500,000
20,500,000
MUNICIPAL NOTES (A) - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE
(UNAUDITED) (G) AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Hsg. Fin. Agcy. Rev.: - continued
(Normandie Court II)
Series A, 3.30%, LOC Fleet Bank, NA, VRDN VMIG 1 $ 400,000 $ 400,000
Triborough Bridge & Tunnel Auth. Spl. Oblig.
Series 1994, 3.45% (FGIC Insured) VRDN VMIG 1 2,600,000 2,600,000
58,900,000
NEW YORK & NEW JERSEY - 0.4%
New York & New Jersey Port. Auth. Spl. Oblig.
Rev.:
Series 3, 3.60% (BPA Morgan Guaranty
Trust Co., NY) VRDN VMIG 1 2,790,000 2,790,000
Series 5, 3.60% (BPA Bayerische
Landesbank Girozentrale) VRDN VMIG 1 1,600,000 1,600,000
4,390,000
TOTAL MUNICIPAL NOTES
(Cost $63,290,000) 63,290,000
TOTAL INVESTMENTS - 100%
(Cost $1,063,244,015) $ 1,138,247,608
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
150 Municipal Bond Contracts Mar. 98 $ 18,529,275 $ 117,600
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 1.6%
SECURITY TYPE ABBREVIATIONS
INFL - Inverse Floating Rate Security
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
2. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
3. Security collateralized by an amount sufficient to pay interest and
principal.
4. Coupon is inversely indexed to a floating interest rate. The price
will be more volatile than the price of a comparable fixed rate
security. The rate shown is the rate at period end.
5. Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end, the value of
securities pledged amounted to $472,150.
6. Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
7. Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investment in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 70.4% AAA, AA, A 69.5%
Baa 22.6% BBB 20.7%
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 1.0%.
The distribution of municipal securities by revenue source, as a
percentage of total value of investment in securities, is as follows:
General Obligation 37.7%
Transportation 16.5
Special Tax 11.2
Water and Sewer 8.6
Industrial Development 6.1
Education 5.4
Others (individually less than 5%) 14.5
TOTAL 100.0%
INCOME TAX INFORMATION
At January 31, 1998 the aggregate cost of investment securities for
income tax purposes was $1,063,244,015. Net unrealized appreciation
aggregated $75,003,593, of which $75,074,512 related to appreciated
investment securities and $70,919 related to depreciated investment
securities.
The fund hereby designates approximately $502,698 as a capital gain
dividend for the purpose of the dividend paid deduction.
At January 31, 1998 the fund had a capital loss carryforward of
approximately $4,544,418 which will expire on January 31, 2003. All of
the loss carryforwards expiring in 2003 were acquired in the merger
and is available to offset future capital gains of the fund to the
extent provided by regulations (see Note 7 of Notes to Financial
Statements).
During fiscal year ended 1998, 100% of the fund's income dividends was
free from federal income tax, and 5.88% of the fund's income dividends
was subject to the federal alternative minimum tax (unaudited).
FIDELITY NEW YORK MUNICIPAL INCOME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1998
8.ASSETS 9. 10.
11.INVESTMENT IN 12. $ 1,138,247,608
SECURITIES, AT
VALUE (COST
$1,063,244,0
15) - SEE
ACCOMPANYING
SCHEDULE
13.RECEIVABLE 14. 332,753
FOR FUND SHARES
SOLD
15.RECEIVABLE 16. 3,650,713
FOR INVESTMENTS
SOLD
17.INTEREST 18. 14,567,597
RECEIVABLE
19.RECEIVABLE 20. 35,884
FOR DAILY
VARIATION ON
FUTURES
CONTRACTS
21. 22.TOTAL 23. 1,156,834,555
ASSETS
24.LIABILITIES 25. 26.
27.PAYABLE TO $ 62,722 28.
CUSTODIAN BANK
29.PAYABLE FOR 10,654,849 30.
INVESTMENTS
PURCHASED
REGULAR
DELIVERY
31. DELAYED 10,995,137 32.
DELIVERY
33.DISTRIBUTIONS 891,118 34.
PAYABLE
35.ACCRUED 378,736 36.
MANAGEMENT
FEE
37.OTHER 184,370 38.
PAYABLES AND
ACCRUED
EXPENSES
39. 40.TOTAL 41. 23,166,932
LIABILITIES
42.43.NET 44. $ 1,133,667,623
ASSETS
45.NET ASSETS 46. 47.
CONSIST OF:
48.PAID IN 49. $ 1,060,944,131
CAPITAL
50.ACCUMULATED 51. (2,397,701)
UNDISTRIBUTED
NET REALIZED
GAIN (LOSS) ON
INVESTMENTS
52.NET 53. 75,121,193
UNREALIZED
APPRECIATION
(DEPRECIATION)
ON INVESTMENTS
54.55.NET 56. $ 1,133,667,623
ASSETS, FOR
87,634,516
SHARES
OUTSTANDING
57.58.NET 59. $12.94
ASSET VALUE,
OFFERING PRICE
AND
REDEMPTION
PRICE PER SHARE
($1,133,667,
623 (DIVIDED BY)
87,634,516
SHARES)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 1998
60.61.INTEREST INCOME 62. $ 24,592,678
63.EXPENSES 64. 65.
66.MANAGEMENT FEE $ 1,731,659 67.
68.TRANSFER AGENT FEES 498,854 69.
70.ACCOUNTING FEES AND 186,274 71.
EXPENSES
72.NON-INTERESTED TRUSTEES' 1,696 73.
COMPENSATION
74.CUSTODIAN FEES AND 23,002 75.
EXPENSES
76.REGISTRATION FEES 26,600 77.
78.AUDIT 55,683 79.
80.LEGAL 5,060 81.
82.MISCELLANEOUS 89 83.
84. TOTAL EXPENSES BEFORE 2,528,917 85.
REDUCTIONS
86. EXPENSE REDUCTIONS (78,939) 2,449,978
87.88.NET INTEREST INCOME 89. 22,142,700
90.REALIZED AND UNREALIZED 92. 93.
GAIN (LOSS)
91.NET REALIZED GAIN (LOSS) ON:
94. INVESTMENT SECURITIES 7,275,991 95.
96. FUTURES CONTRACTS (97,425) 7,178,566
97.CHANGE IN NET UNREALIZED 98. 99.
APPRECIATION (DEPRECIATION)
ON:
100. INVESTMENT SECURITIES 14,346,110 101.
102. FUTURES CONTRACTS 117,600 14,463,710
103.104.NET GAIN (LOSS) 105. 21,642,276
106.107.NET INCREASE 108. $ 43,784,976
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
109.OTHER INFORMATION 111. 112.
110.EXPENSE REDUCTIONS
113. CUSTODIAN CREDITS $ 869
114. TRANSFER AGENT CREDITS 1,373
115. FMR REIMBURSEMENT 76,697
116. $ 78,939
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
1998 1997
117.INCREASE (DECREASE) IN
NET ASSETS
118.OPERATIONS $ 22,142,700 $ 21,136,283
NET INTEREST INCOME
119. NET REALIZED GAIN (LOSS) 7,178,566 2,985,921
120. CHANGE IN NET UNREALIZED 14,463,710 (11,611,995)
APPRECIATION (DEPRECIATION)
121. 43,784,976 12,510,209
122.NET INCREASE
(DECREASE) IN NET ASSETS
RESULTING
FROM OPERATIONS
123.DISTRIBUTIONS TO (22,142,700) (21,198,336)
SHAREHOLDERS
FROM NET INTEREST INCOME
124. FROM NET REALIZED GAIN (689,878) (68,591)
125. 126.TOTAL DISTRIBUTIONS (22,832,578) (21,266,927)
127.SHARE TRANSACTIONS - NET 711,644,417 (23,850,792)
INCREASE (DECREASE) (NOTE 6)
128. 732,596,815 (32,607,510)
129.TOTAL INCREASE
(DECREASE) IN NET ASSETS
130.NET ASSETS 131. 132.
133. BEGINNING OF PERIOD 401,070,808 433,678,318
134. END OF PERIOD $ 1,133,667,623 $ 401,070,808
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
135. YEAR ENDED JANUARY 31,
136. 1998 1997 1996 1995 1994 F
137.SELECTED
PER-SHARE
DATA
138.NET ASSET $ 12.290 $ 12.540 $ 11.370 $ 13.050 $ 12.660
VALUE,
BEGINNING
OF PERIOD
139.INCOME .624 .629 .635 .673 .714
FROM
INVESTMENT
OPERATIONS
NET INTEREST
INCOME
140. NET .670 (.246) 1.177 (1.440) .850
REALIZED AND
UNREALIZED
GAIN (LOSS)
141. TOTAL FROM 1.294 .383 1.812 (.767) 1.564
INVESTMENT
OPERATIONS
142.
143.LESS
DISTRIBUTIONS
144. FROM NET (.624) (.631) B (.642) B (.673) (.714)
INTEREST INCOME
145. FROM NET (.020) (.002) B - (.210) (.460)
REALIZED GAIN
146. IN EXCESS - - - (.030) -
OF NET REALIZED
GAIN
147. TOTAL (.644) (.633) (.642) (.913) (1.174)
DISTRIBUTIONS
148.NET ASSET $ 12.940 $ 12.290 $ 12.540 $ 11.370 $ 13.050
VALUE, END OF
PERIOD
149.TOTAL 10.82% 3.22% 16.29% (5.78)% 12.70%
RETURN A
150.RATIOS AND
SUPPLEMENTAL
DATA
151.NET ASSETS, $ 1,133,668 $ 401,071 $ 433,678 $ 394,234 $ 491,421
END OF PERIOD
(000 OMITTED)
152.RATIO OF .55% D .59% .59% .58% .58%
EXPENSES TO
AVERAGE
NET ASSETS
153.RATIO OF .55% .59% .58% C .58% .58%
EXPENSES TO
AVERAGE NET
ASSETS AFTER
EXPENSE
REDUCTIONS
154.RATIO OF NET 4.97% 5.15% 5.26% 5.77% 5.45%
INTEREST INCOME
TO AVERAGE NET
ASSETS
155.PORTFOLIO 43% E 44% 83% 34% 70%
TURNOVER RATE
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK
TO TAX DIFFERENCES.
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 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 (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
E THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGER (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS).
F EFFECTIVE FEBRUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION
93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION
OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY
INVESTMENT COMPANIES." AS A RESULT, NET INTEREST INCOME PER SHARE MAY
REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either
total return or yield. Total return reflects the change in value of an
investment, assuming reinvestment of the fund's dividend income and
the effect of the fund's $5 account closeout fee on an average-sized
account. Yield measures the income paid by a fund. Since a money
market fund tries to maintain a $1 share price, yield is an important
measure of performance. If Fidelity had not reimbursed certain fund
expenses, the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
SPARTAN NY MUNI MONEY MARKET 3.26% 15.18% 29.97%
NY TAX-FREE 3.05% 14.16% 26.87%
MONEY MARKET FUNDS AVERAGE
CUMULATIVE TOTAL RETURNS show the fund's performance over a set period
- - in this case, one year, five years or since the fund started on
February 3, 1990. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. To measure how the fund's performance stacked up
against its peers, you can compare it to the New York tax-free money
market funds average, which reflects the performance of mutual funds
with similar objectives tracked by IBC Financial Data, Inc. The past
one year average represents a peer group of 37 mutual funds. (The
periods covered by the IBC Financial Data, Inc. numbers are the
closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1998 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
SPARTAN NY MUNI MONEY MARKET 3.26% 2.87% 3.33%
NY TAX-FREE 3.05% 2.68% 3.05%
MONEY 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
2/2/98 11/3/97 7/28/97 4/28/97 2/3/97
SPARTAN NEW YORK 3.12% 3.24% 3.22% 3.69% 3.08%
MUNICIPAL MONEY MARKET
NEW YORK TAX-FREE MONEY 2.92% 3.04% 3.01% 3.46% 2.86%
MARKET FUNDS AVERAGE
SPARTAN NEW YORK 5.49% 5.71% 5.67% 6.50% 5.42%
MUNICIPAL MONEY MARKET -
TAX-EQUIVALENT
Row: 1, Col: 1, Value: 3.12
Row: 1, Col: 2, Value: 2.92
Row: 2, Col: 1, Value: 3.24
Row: 2, Col: 2, Value: 3.04
Row: 3, Col: 1, Value: 3.22
Row: 3, Col: 2, Value: 3.01
Row: 4, Col: 1, Value: 3.69
Row: 4, Col: 2, Value: 3.46
Row: 5, Col: 1, Value: 3.08
Row: 5, Col: 2, Value: 2.86
4% -
3% -
2% -
1% -
0%
Spartan New York
Municipal Money
Market
New York Tax-Free
Money Market
Funds Average
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the New
York 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 1997 federal, state and New York City
income tax rate of 43.21%. 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.
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.
(checkmark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Diane McLaughlin, Portfolio Manager of Spartan New
York Municipal Money Market Fund
Q. WHAT WAS THE MARKET ENVIRONMENT LIKE DURING THE PAST 12 MONTHS?
A. Real gross domestic product - GDP adjusted for inflation - averaged
3.8% in 1997, signaling strong economic growth throughout the year. In
addition, unemployment averaged 4.9% in 1997 - a rate that
historically would have meant higher inflation due to wage pressures.
However, 1997 was different. The 1997 producer price index (PPI) - a
measure of wholesale prices - dropped 1.2%, representing the biggest
one-year drop since 1986. Similarly, the consumer price index (CPI)
finished the year up 1.7%, the slowest gain in that same 11-year time
period. Several reasons are cited for this lack of inflation. Most
notably, productivity improvements over the past few years have
reduced the risk of inflationary pressures that had previously
accompanied similar periods of low unemployment. Nevertheless, the
Federal Reserve Board did raise the rate banks charge each other for
overnight loans - known as the fed funds target rate - from 5.25% to
5.50% in March. This move was seen as a preemptive strike against
future inflation that was expected to emerge along with robust
economic growth. Although economic strength persisted and the market
expected another rate hike, no signs of inflation arose - causing the
Fed to hold off on raising rates further.
Q. WHAT HAPPENED AT THE END OF THE PERIOD?
A. In October, the financial crisis in Southeast Asia took center
stage. This unusual turn of events shifted focus from growth in the
domestic economy to the possible impact the Asian crisis would have on
the economy in the U.S. and other parts of the world. The dollar
appreciated markedly against many Asian currencies, making Asian
imports to the U.S. less expensive and, consequently, suppressing
inflation. Many market observers became concerned that the U.S.
economy would slow significantly if exports to Asian countries began
to decline. At the end of the period, the Fed shifted to a more
neutral stance, giving itself flexibility to raise interest rates if
inflation started to surface or to lower rates if the spillover from
the crisis in Asia significantly hurt the U.S. economy.
Q. WHAT WAS YOUR STRATEGY AS THIS UNFOLDED?
A. The fund's average maturity at the beginning of the period was 45
days. During the first half of the period, my investment focus was on
the short end of the money market yield curve, as increased supply of
these shorter-term securities made that part of the market attractive.
The fund did participate, however, in the one-year market during the
summer when supply became more plentiful and when yields factored in
potential future interest-rate increases. Despite purchases of these
securities, though, the fund's average maturity shortened to 42 days
at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1998, was 3.10%, compared
to 3.05% 12 months ago. The latest yield was the equivalent of a 5.46%
taxable yield for New York investors in the 43.21% combined federal,
state and New York City tax bracket. Through January 31, 1998, the
fund's 12-month total return was 3.26%, compared to 3.05% for the New
York tax-free money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. Domestic growth might continue at the pace set in 1997, leading to
an even tighter labor market. In this case, I think eventual wage
increases would be passed on to the consumer - meaning inflation. The
spillover from the Asian turmoil may, however, significantly dampen
growth in the U.S. and suppress inflation. I believe the Fed is
waiting for more evidence to evaluate the extent of the Asian
situation, so I expect steady policy in the near term. The market,
however, has priced in an easing - or lowering of rates. I expect to
keep the fund's average maturity shorter than that of its peers,
giving me the flexibility to extend the fund's maturity if this easing
outlook shifts and rates get more attractive.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
NORM LIND ON HIS OUTLOOK FOR
NEW YORK'S FISCAL AND
ECONOMIC HEALTH:
"In November, 1997, Standard &
Poor's - one of the major
municipal bond credit rating
agencies - upgraded the credit
rating of certain New York state
agencies in recognition of the
strength of the state's economy
and more sound fiscal situation.
The impressive stock market rally
of 1996 and 1997 - which
translated into improving profits
at Wall Street firms and rising
income for those who work at them
- - had a lot to do with the state's
rising economic and fiscal
fortunes. In my view, the windfall
that came from Wall Street over
the past several years may not be
sustainable in the next several
years. The question then becomes:
Will the state and New York City
plan for a day when the good times
stop? The answer to that will be a
primary factor in determining the
state's and New York City's fiscal
well-being in the years to come."
FUND FACTS
GOAL: high current income free
from federal, state and New
York City income taxes by
investing primarily in longer-
term, investment-grade New
York municipal securities
FUND NUMBER: 071
TRADING SYMBOL: FTFMX
START DATE: July 10, 1984
SIZE: as of January 31, 1998,
more than $1.1 billion
MANAGER: Norm Lind, since
1993; manager, various Fidelity
and Spartan municipal income
funds; joined Fidelity in 1986
(checkmark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
1/31/98 7/31/97 1/31/97
0 - 30 65 74 74
31 - 90 21 13 7
91 - 180 9 6 12
181 - 397 5 7 7
WEIGHTED AVERAGE MATURITY
1/31/98 7/31/97 1/31/97
SPARTAN NEW YORK
MUNICIPAL MONEY MARKET 42 DAYS 39 DAYS 45 DAYS
NEW YORK TAX-FREE
MONEY MARKET FUNDS AVERAGE* 44 DAYS 49 DAYS 51 DAYS
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JANUARY 31, 1998 AS OF JULY 31, 1997
ROW: 1, COL: 1, VALUE: 59.0
ROW: 1, COL: 2, VALUE: 21.0
ROW: 1, COL: 3, VALUE: 2.0
ROW: 1, COL: 4, VALUE: 16.5
ROW: 1, COL: 5, VALUE: 1.5
ROW: 1, COL: 6, VALUE: 25.8
ROW: 1, COL: 1, VALUE: 68.0
ROW: 1, COL: 2, VALUE: 14.0
ROW: 1, COL: 3, VALUE: 3.0
ROW: 1, COL: 4, VALUE: 13.5
ROW: 1, COL: 5, VALUE: 1.5
VARIABLE RATE DEMAND
NOTES (VRDNS) 59%
COMMERCIAL PAPER
(INCLUDING CP MODE) 21%
TENDER BONDS 2%
MUNICIPAL NOTES 17%
OTHER 1%
VARIABLE RATE DEMAND
NOTES (VRDNS) 68%
COMMERCIAL PAPER
(INCLUDING CP MODE) 14%
TENDER BONDS 3%
MUNICIPAL NOTES 14%
OTHER 1%
*SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
INVESTMENTS JANUARY 31, 1998
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 92.7%
Albany County Arpt. Auth. Participating
VRDN, Trust Receipts 1997, 3.70%
(Liquidity Facility Bank of New York) (b)(c) $ 2,500,000 $ 2,500,000
Amherst Ind. Dev. Auth. Rev. (Maple Dev. Proj.) Series 1986, 3.60%,
LOC Marine Midland Bank, NA,VRDN (b) 5,095,000 5,095,000
Babylon Ind. Dev. Rev. (Southern Container Corp.) 3.65%, LOC Fleet
Bank, NA, VRDN (b) 3,000,000 3,000,000
Buffalo Gen. Oblig. RAN 4.40% 8/5/98, LOC Landesbank Hessen-Thuringen
8,000,000 8,022,698
Byram Hills City School Dist. BAN 4.25% 7/3/98 1,400,000 1,402,491
Chemung County Ind. Dev. Agcy. Ind. Dev. Rev. (MMARS Second Prog.)
(Trayer Products Inc.) Series A, 3.60%, LOC Marine Midland Bank, NA,
VRDN 2,400,000 2,400,000
Dutchess County Ind. Dev. Auth. Ind. Dev. Rev. (Toys "R" Us/Nynex Inc.
Proj.) 3.47%, LOC Bankers Trust Co., VRDN 500,000 500,000
Erie County Gen. Oblig. RAN:
Series A, 4.50% 6/25/98, LOC Union Bank of Switzerland 5,500,000
5,514,418
Series B, 4.50% 10/29/98, LOC Union Bank of Switzerland 4,100,000
4,119,712
Erie County Ind. Dev. Auth., VRDN:
(Canfibre of Lackawanna) Series 1997, 3.55%
(Bayerische Landesbank Girozentrale Guaranteed) (b) 4,300,000
4,300,000
(Niagara Envelope Co. Proj.) 3.60%, LOC Bankers Trust Co. (b)
1,700,000 1,700,000
(Uniland Dev./Buffalo Campus) Series 1986 D, 3.60%, LOC Marine
Midland Bank, NA (b) 1,230,000 1,230,000
Herkimer County Ind. Dev. Agcy.
(H.M. Quackenbush, Inc.) Series 1988 A,
3.60%, LOC Marine Midland Bank, NA, VRDN (b) 890,000 890,000
Huntington Unified School Dist. TAN 4.25% 6/29/98 3,200,000
3,204,933
Hyde Park Central School Dist. BAN 3.95% 2/27/98 1,090,100 1,090,100
Islip Gen. Oblig. BAN 4.10% 7/24/98 2,300,000 2,302,064
Islip Ind. Dev. Agcy. Rev. (Interstate Litho Corp.) Series 1996 A,
3.60%, LOC Marine Midland Bank, NA, VRDN (b) 1,200,000 1,200,000
Lewis County Ind. Dev. Agcy. Ind. Dev. Rev. Rfdg.(Philip Morris Proj.)
3.65%, VRDN 1,300,000 1,300,000
Monroe County Arpt. Auth. Participating VRDN,
Series PT-98, 3.65%, LOC Bayerische Hypotheken-und
Wechsel Bank (b)(c) 1,500,000 1,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Monroe County Ind. Dev. Agcy. Rev., VRDN:
(Advent Tool & Mold) Series 1990 D,
3.60%, LOC Marine Midland Bank, NA (b) $ 950,000 $ 950,000
(AJL Manufacturing) Series 1996 A,
3.60%, LOC Marine Midland Bank, NA (b) 1,900,000 1,900,000
(Illbruck Office Prod. Inc.) Series 1997,
3.55%, LOC Key Bank, NA (b) 1,200,000 1,200,000
(JMT Prop. Proj.) Series 1988 B,
3.60%, LOC Marine Midland Bank, NA (b) 1,440,000 1,440,000
Nassau County Gen. Oblig.:
BAN:
Series C, 4.25% 3/17/98 6,600,000 6,603,945
Series 1998 A, 4.25% 8/17/98 4,240,000 4,255,933
TAN Series A, 4.25% 3/31/98 10,035,000 10,043,787
New Rochelle County School Dist. TAN 4.25% 6/30/98 3,600,000
3,606,314
New York City Gen. Oblig.:
Bonds, CP mode:
Series H-3, 3.80% 3/25/98 (FSA Insured)
(BPA State Street Bank & Trust Co.) 1,600,000 1,600,000
Series H-3, 3.55% 4/9/98 (FSA Insured)
(BPA State Street Bank & Trust Co.) 1,500,000 1,500,000
Series 1994 H-2, 3.55% 4/9/98 (MBIA Insured)
(BPA Banco de Santander, SA) 3,000,000 3,000,000
Series 1994 H-5, 3.70% 3/31/98 (MBIA Insured)
(BPA Landesbank Hessen-Thuringen) 4,300,000 4,300,000
Series 1994 H-6, 3.55% 4/9/98 (MBIA Insured)
(BPA RaboBank) 1,400,000 1,400,000
Participating VRDN (c):
Series I BTP-234, 3.55%
(Liquidity Facility Bankers Trust Co.) 6,200,000 6,200,000
Series 1994 C-3, 3.68% (Liquidity Facility Citibank) 10,100,000
10,100,000
RAN Series 1998 A, 4.50% 6/30/98,
LOC Westdeutsche Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY 27,000,000 27,069,895
Series 1992 D, 3.50% (FGIC Insured) (BPA FGIC-SPI) VRDN 3,100,000
3,100,000
New York City Health & Hosp. Corp. (Health Sys.) Series 1997 A,
3.30%, LOC Morgan Guaranty Trust Co., NY, VRDN 10,200,000 10,200,000
New York City Hsg. Dev. Corp. Multi-Family Hsg. Rev., VRDN:
(Gerard Court Proj.) Series 1997A, 3.65%, LOC Bayerische
Hypotheken-und Wechsel Bank (b) 3,500,000 3,500,000
(Related-Carnegie Park) Series 1997 A, 3.35% (Fannie Mae Guaranteed)
8,600,000 8,600,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Hsg. Dev. Corp. Multi-Family
Hsg. Rev., VRDN: - continued
(Related-Monterey) Series 1997 A, 3.35% (Fannie Mae Guaranteed) $
4,400,000 $ 4,400,000
(Related-Tribeca Tower) Series 1997 A, 3.45% (Fannie Mae Guaranteed)
(b) 4,700,000 4,700,000
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev., VRDN:
(400 West 59th Str. Proj.):
3.40%, LOC Bayerische
Hypotheken-und Wechsel Bank (b) 9,400,000 9,400,000
3.50%, LOC Bayerische Hypotheken-und Wechsel Bank (b) 2,200,000
2,200,000
3.50%, LOC Bayerische
Hypotheken-und Wechsel Bank (b) 6,100,000 6,100,000
(West 43rd Str. Dev.) Series 1996 B, 3.50%,
LOC Fleet Bank, NA, VRDN (b) 19,000,000 19,000,000
New York City Hsg. Fin. Agcy. Rev. (240 East 39th Str.) Series 1997-A,
3.55%, LOC Chase Manhattan Bank, VRDN (b) 12,400,000 12,400,000
New York City Ind. Dev. Agcy.:
Participating VRDN (c):
Series 1996-H, 3.65% (Liquidity
Facility Caisse des Depots et Consignations) (b) 1,695,000
1,695,000
Series 1997-E, 3.65% (Liquidity Facility Caisse des Depots et
Consignations) (b) 4,460,000 4,460,000
Series 1997-H, 3.65% (Liquidity
Facility Caisse des Depots et Consignations) (b) 3,260,000
3,260,000
Rev. (Korean Airlines Proj.) VRDN:
Series 1997-B, 3.50%, LOC Bankers Trust Co. (b) 4,100,000
4,100,000
Series 1997-C, 3.40%, LOC Bankers Trust Co. (b) 1,900,000
1,900,000
New York City Ind. Dev. Agcy. Ind. Dev. Rev.:
(Andin Int'l.) 3.35%, LOC ABN-Amro Bank, NV, VRDN (b) 2,050,000
2,050,000
(Apache II Realty) 3.35%, LOC ABN-Amro Bank,
NV, VRDN (b) 1,050,000 1,050,000
(Raisin Realty Inc.\Bowe Industries, Inc.) Series K, 3.35%,
LOC ABN-Amro Bank, NV, VRDN (b) 1,650,000 1,650,000
New York City Metropolitan Trans. Auth. Participating VRDN (c):
Series 1997 D, 3.65% (Liquidity Facility Merrill Lynch & Co.)
6,770,000 6,770,000
Series 1997 P, 3.65% (Liquidity Facility CoreStates Bank)
10,000,000 10,000,000
3.63% (Liquidity Facility Citibank) 15,800,000 15,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Assistance Corp.:
Bonds Series L, 4.50% 7/1/98 $ 4,000,000 $ 4,011,010
Participating VRDN, Series G, 3.55%
(Liquidity Facility Bankers Trust Co.) (c) 9,300,000 9,300,000
Series K-3, 3.45% 4/8/98,
LOC Landesbank Hessen-Thuringen, CP 5,300,000 5,300,000
New York City Muni. Wtr. Fin. Auth.:
CP:
Series 1:
3.45% 3/11/98, LOC Canadian
Imperial Bank of Commerce 2,500,000 2,500,000
3.80% 3/19/98, LOC Canadian
Imperial Bank of Commerce 4,300,000 4,300,000
3.80% 3/20/98, LOC Canadian
Imperial Bank of Commerce 28,900,000 28,900,000
Series 3:
3.55% 2/27/98, LOC Bank of Nova Scotia,
LOC Toronto-Dominion Bank 3,300,000 3,300,000
3.75% 4/7/98, LOC Bank of Nova Scotia,
LOC Toronto-Dominion Bank 9,400,000 9,400,000
Series 4, 3.80% 3/31/98, LOC Credit Suisse First Boston 2,700,000
2,700,000
Series 5 B, 3.80% 3/26/98 5,700,000 5,700,000
Participating VRDN, Series 1997 B, 3.65% (Liquidity Facility
Societe Generale) (c) 2,200,000 2,200,000
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Rev. Series 1994 C,
3.65% (FGIC Insured) VRDN 3,400,000 3,400,000
New York City Trust for Cultural Resources (The Jewish Museum) 4% (BPA
Sumitomo Bank, Ltd.) VRDN 2,925,000 2,925,000
New York State Dorm. Auth.:
Participating VRDN (c):
Series PA-60, 3.60%
(Liquidity Facility Merrill Lynch & Co.) 2,500,000 2,500,000
Series 97C3202, 3.63% (Liquidity Facility Citibank) 2,700,000
2,700,000
Rev. Bonds (Memorial Sloan-Kettering Cancer Ctr.) CP mode:
Series 1989-A:
3.50% 3/30/98, LOC Chase Manhattan Bank 3,000,000 3,000,000
3.45% 4/6/98, LOC Chase Manhattan Bank 3,500,000 3,500,000
Series 1989-B, 3.45% 4/6/98, LOC Chase Manhattan Bank 2,500,000
2,500,000
Series 1989-C:
3.45% 4/6/98, LOC Chase Manhattan Bank 2,000,000 2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth.: - continued
Rev. Bonds (Memorial Sloan-Kettering Cancer Ctr.) CP mode:
Series 1989-C:
3.45% 4/6/98, LOC Chase Manhattan Bank $ 3,035,000 $ 3,035,000
3.45% 4/6/98, LOC Chase Manhattan Bank 1,740,000 1,740,000
3.55% 4/7/98, LOC Chase Manhattan Bank 1,400,000 1,400,000
Series 1989-D, 3.65% 3/9/98,
LOC Chase Manhattan Bank 4,835,000 4,835,000
New York State Energy Research & Dev. Auth.:
Participating VRDN (c):
Series 943202, 3.68% (Liquidity Facility Citibank) 11,600,000
11,600,000
3.63% (Liquidity Facility Citibank) 5,700,000 5,700,000
Rev. (Long Island Lighting Co.) VRDN:
Series 1993 A, 3.55%, LOC Toronto-Dominion Bank (b) 23,800,000
23,800,000
Series 1994 A, 3.50%,
LOC Union Bank of Switzerland (b) 12,200,000 12,200,000
Series 1995 A, 3.50%,
LOC Union Bank of Switzerland (b) 16,200,000 16,200,000
New York State Energy Research & Dev. Auth. Poll. Cont. Rev. (Niagara
Mohawk Pwr. Proj.):
Series 1987 B, 3.95%,
LOC Morgan Guaranty Trust Co., NY, VRDN (b) 500,000 500,000
Series 1988 A, 3.95%, LOC Morgan Guaranty Trust Co., NY, VRDN (b)
4,800,000 4,800,000
New York State Gen. Oblig.:
Bonds, CP mode:
Series 1997 A:
3.65% 2/27/98,
LOC Bayerische Landesbank Girozentrale 5,200,000 5,200,000
3.50% 4/9/98,
LOC Bayerische Landesbank Girozentrale 8,200,000 8,200,000
CP:
Series S:
3.55% 2/23/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 13,250,000 13,250,000
3.60% 3/2/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 3,500,000 3,500,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Gen. Oblig.: - continued
CP:
Series T:
3.45% 4/1/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) $ 5,200,000 $ 5,200,000
3.45% 4/8/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 3,900,000 3,900,000
Series U:
3.45% 4/1/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 4,000,000 4,000,000
3.45% 4/8/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 1,000,000 1,000,000
New York State Hsg. Dev. Corp. Mtg. Rev.
(York Ave. Proj.) Series 1994 A, 3.50% (92nd Realty Co.)
LOC Midland Bank, PLC, VRDN (b) 10,650,000 10,650,000
New York State Hsg. Fin. Agcy. Rev.:
(East 48th St. Proj.) Series 1995 A,
3.50%, LOC Fleet Bank, NA, VRDN (b) 1,500,000 1,500,000
Series 1997 A, 3.50%, LOC Fleet Bank, NA, VRDN (b) 10,000,000
10,000,000
(Tribeca Park) Series 1997 A, 3.50%,
LOC Bayerische Hypotheken-und Wechsel Bank, VRDN 6,000,000
6,000,000
New York State Local Gov't. Assistance Corp.:
Participating VRDN, Series 1997 SG-99, 3.65%
(Liquidity Facility Societe Generale) (c) 3,050,000 3,050,000
Rfdg. Bonds Series 1997 B, 4.50% 4/1/98 3,845,000 3,849,540
New York State Med. Care Facs. Fin. Agcy.
Participating VRDN (c): Series PA-89, 3.65% (Liquidity Facility
Merrill Lynch & Co.) 3,960,000 3,960,000
Series PT-145A, 3.65% (Liquidity Facility Bayerische Hypotheken-und
Wechsel Bank) 3,700,000 3,700,000
New York State Mtg. Agcy. Homeowner Mtg. Rev:
Participating VRDN (c):
Series 1997, 3.75%
(Liquidity Facility Bank of New York) (b) 3,000,000 3,000,000
Series 1997 G, 3.65% (Liquidity Facility Caisse
des Depots et Consignations) (b) 6,840,000 6,840,000
Series 1997 J, 3.70%
(Liquidity Facility CoreStates Bank) (b) 4,600,000 4,600,000
Series PA-29, 3.65%, (Liquidity Facility Merrill Lynch & Co.)
6,000,000 6,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy. Homeowner Mtg. Rev: - continued
Participating VRDN (c):
Series PA-87, 3.65% (Liquidity Facility
Merrill Lynch & Co.) (b) $ 2,860,000 $ 2,860,000
Series PA-153, 3.65% (Liquidity Facility
Merrill Lynch & Co.) (b) 2,890,000 2,890,000
Series PT-11, 3.65% (Liquidity Facility
Commerzbank, AG) (b) 1,660,000 1,660,000
Series PT-15 A, 3.65% (Liquidity Facility
Commerzbank, AG) (b) 4,500,000 4,500,000
Series PT-15 B, 3.65% (Liquidity Facility
Commerzbank, AG) (b) 2,840,000 2,840,000
Series PT-26, 3.65%, (Liquidity Facility
Merrill Lynch & Co.) (b) 2,170,000 2,170,000
Series PT-108, 3.65% (Liquidity Facility
Banco de Santander, SA) (b) 2,845,000 2,845,000
New York State Pwr. Auth.:
CP:
3.80% 2/12/98 (Liquidity Facility Bank of America Nat'l. Trust &
Savings) 2,200,000 2,200,000
3.80% 2/12/98 (Liquidity Facility
Bank of America Nat'l. Trust & Savings) 4,600,000 4,600,000
3.85% 3/9/98 (Liquidity Facility Bank of America Nat'l. Trust &
Savings) 1,000,000 1,000,000
3.85% 3/18/98 (Liquidity Facility Bank of America Nat'l. Trust &
Savings) 7,100,000 7,100,000
3.45% 4/6/98 (Liquidity Facility
Bank of America Nat'l. Trust & Savings) 1,500,000 1,500,000
Series 2, 3.45% 3/10/98 (Liquidity Facility Bank of Nova Scotia)
5,000,000 5,000,000
Rev. Bonds 3.75%, tender 3/1/98 18,000,000 18,000,000
Northport-East Northport Unified School Dist. TAN 4.25% 6/30/98
8,175,000 8,187,368
Oneida County Ind. Dev. Agcy. Ind. Dev. Rev. (Utica Corp.) Series
1996, 3.60%, LOC Fleet Bank, NA, VRDN (b) 2,500,000 2,500,000
Oswego County Ind. Dev. Agcy. Ind. Dev. Rev.(Engraph Inc. Proj.)
Series 1989, 3.60%, LOC SunTrust Bank, Atlanta, VRDN (b) 5,620,000
5,620,000
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.(Philip Morris Co.
Proj.) 3.55%, VRDN 5,200,000 5,200,000
Oyster Bay Gen. Oblig. BAN 4% 2/27/98 4,300,000 4,300,642
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Plainview-Old Bethpage County School Dist. TAN 4.25% 6/30/98 $
4,600,000 $ 4,606,423
Riverhead Central School Dist. BAN Series 1997, 4.25% 12/4/98
3,455,000 3,465,244
Rochester Gen. Oblig. Bonds 4% 10/1/98 2,490,000 2,492,010
Rockland Gen. Oblig. BAN 4% 3/6/98 6,800,000 6,801,736
Rockland County Ind. Dev. Agcy. Rev. (INSL-X Prod. Corp. Proj.) Series
1990, 3.55%, LOC Bank of New York, VRDN (b) 2,675,000 2,675,000
Roslyn Unified School Dist. TAN 4.25% 6/29/98 2,950,000 2,954,548
St. Lawrence County Ind. Dev. Agcy. Envir. Impt. Rev. (Reynolds Metals
Proj.) 3.55%, LOC Royal Bank of Canada, VRDN 5,300,000 5,300,000
Saratoga County Ind. Dev. Agcy. (Spurlock Adhesives Inc.) Series 1997
A, 3.75%, LOC KeyBank, NA, VRDN 2,700,000 2,700,000
Schenectady Ind. Dev. Agcy. Rev.
(Super Steel Schenectady Proj.) Series 1996 A, 3.60%,
LOC Key Bank of New York, VRDN 2,100,000 2,100,000
Seneca County Ind. Dev. Agcy. Rev. (New York Chiropractic College)
Series 1997, 3.50%, LOC Fleet Bank, NA, VRDN 3,100,000 3,100,000
Southampton Unified School Dist. TAN 4.25% 6/25/98 4,450,000
4,456,841
Suffolk County Gen. Oblig. TAN
Series II, 4.50% 9/10/98, LOC National Westminster Bank,
LOC Canadian Imperial Bank of Commerce 15,700,000 15,761,327
Suffolk County Ind. Dev. Agcy. Rev.
(Maryhaven Center of Hope Inc.) Series 1997 A, 3.60%, LOC Key Bank,
NA, VRDN 2,625,000 2,625,000
Suffolk County Ind. Dev. Agcy. Rev. (Nissequogue Cogeneration Partner
Fac.) 3.55%, LOC Toronto-Dominion Bank, VRDN (b) 7,800,000 7,800,000
Tompkins Gen. Oblig. County BAN 4.25% 4/10/98 3,600,000 3,601,591
Triborough Bridge & Tunnel Auth. Participating VRDN (c): Series
BT-162, 3.55% (Liquidity Facility Bankers Trust Co.) 2,346,000
2,346,000
Series BT-184, 3.55% (Liquidity Facility Bankers Trust Co.)
4,420,000 4,420,000
Westchester County Board of Coop. Edl. Svc. RAN Series 1997, 4.25%
7/10/98 2,250,000 2,253,574
730,554,144
NEW YORK & NEW JERSEY - 7.3%
New York & New Jersey Port. Auth.:
(New Jersey Equip. Notes) VRDN:
Series 1997-1D, 3.55% 4,500,000 4,500,000
Series 1997-3B, 3.55% 8,300,000 8,300,000
Series 1997-4B, 3.65% (b) 2,000,000 2,000,000
Participating VRDN (c): Series 6, 3.65% (Liquidity Facility Societe
Generale) (b) 5,300,000 5,300,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - CONTINUED
New York & New Jersey Port. Auth.: - continued
Participating VRDN (c):
Series 6, 3.65% (Liquidity Facility Societe Generale) (b) $
7,500,000 $ 7,500,000
Series 6, 3.65% (Liquidity Facility Societe Generale) (b) 5,800,000
5,800,000
Series 1991, 3.85%, VRDN (b)(d) 9,800,000 9,800,000
Series 1997, 3.70% (Liquidity Facility Bank of
New York) (b) 8,400,000 8,400,000
Series 1997, 3.70% (Liquidity Facility Bank of New York) 3,000,000
3,000,000
Series A, 3.80% 2/18/98 (Liquidity Facility Bank of Nova Scotia) CP
(b) 2,130,000 2,130,000
New York & New Jersey Versatile Structure.
3.55% (BPA Morgan Guaranty Trust Co., NY) VRDN 500,000 500,000
57,230,000
TOTAL INVESTMENTS - 100% $ 787,784,144
Total Cost for Income Tax Purposes $ 787,784,144
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1.The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2.Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
3.Provides evidence of ownership in one or more underlying municipal
bonds.
4.Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
New York & New Jersey
Port. Auth. Series 1991,
3.85%, VRDN 6/18/91 $ 9,800
OTHER INFORMATION
At the end of the period, restricted securities (excluding 144A
issues) amounted to $9,800,000 or 1.2% of net assets.
INCOME TAX INFORMATION
At January 31, 1998, the fund had a capital loss carryforward of
approximately $141,000 of which $20, $20,930, $50,780, $28,210 and
$41,060 will expire on January 31, 2000, 2001, 2002, 2005 and 2006,
respectively.
During fiscal year ended 1998, 100% of the fund's income dividends was
free from federal income tax, and 39.74% of the fund's income
dividends was subject to the federal alternative minimum tax
(unaudited).
SPARTAN NEW YORK MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1998
5.ASSETS 6. 7.
8.INVESTMENT IN SECURITIES, AT 9. $ 787,784,144
VALUE - SEE
ACCOMPANYING SCHEDULE
10.CASH 11. 2,338,174
12.INTEREST RECEIVABLE 13. 5,951,575
14. 15.TOTAL ASSETS 16. 796,073,893
17.LIABILITIES 18. 19.
20.PAYABLE FOR INVESTMENTS $ 9,015,177 21.
PURCHASED
22.DISTRIBUTIONS PAYABLE 49,077 23.
24.ACCRUED MANAGEMENT FEE 324,733 25.
26.OTHER PAYABLES AND 6,095 27.
ACCRUED EXPENSES
28. 29.TOTAL LIABILITIES 30. 9,395,082
31.32.NET ASSETS 33. $ 786,678,811
34.NET ASSETS CONSIST OF: 35. 36.
37.PAID IN CAPITAL 38. $ 786,819,799
39.ACCUMULATED NET REALIZED 40. (140,988)
GAIN (LOSS) ON INVESTMENTS
41.42.NET ASSETS, FOR 43. $ 786,678,811
786,802,808 SHARES
OUTSTANDING
44.45.NET ASSET VALUE, 46. $1.00
OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($786,678,811 (DIVIDED BY)
786,802,808 SHARES)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 1998
47.48.INTEREST INCOME 49. $ 28,226,172
50.EXPENSES 51. 52.
53.MANAGEMENT FEE $ 3,798,941 54.
55.NON-INTERESTED TRUSTEES' 3,126 56.
COMPENSATION
57. TOTAL EXPENSES BEFORE 3,802,067 58.
REDUCTIONS
59. EXPENSE REDUCTIONS (17,057) 3,785,010
60.61.NET INTEREST INCOME 62. 24,441,162
63.REALIZED AND UNREALIZED 65. (41,045)
GAIN (LOSS)
64.NET REALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
66.INCREASE (DECREASE) IN NET 67. (2,163)
UNREALIZED GAIN FROM
ACCRETION
OF DISCOUNT
68.69.NET GAIN (LOSS) 70. (43,208)
71.72.NET INCREASE IN NET 73. $ 24,397,954
ASSETS RESULTING FROM
OPERATIONS
74.OTHER INFORMATION
75.EXPENSE REDUCTIONS
76. CUSTODIAN CREDITS $ 13,008
77. TRANSFER AGENT CREDITS 4,049
78. $ 17,057
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
1998 1997
79.INCREASE (DECREASE) IN NET
ASSETS
80.OPERATIONS $ 24,441,162 $ 21,292,941
NET INTEREST INCOME
81. NET REALIZED GAIN (LOSS) (41,045) (28,170)
82. INCREASE (DECREASE) IN NET (2,163) 2,163
UNREALIZED GAIN FROM
ACCRETION OF DISCOUNT
83. 84.NET INCREASE 24,397,954 21,266,934
(DECREASE) IN NET ASSETS
RESULTING
FROM OPERATIONS
85.DISTRIBUTIONS TO (24,441,162) (21,292,941)
SHAREHOLDERS FROM NET INTEREST
INCOME
86.SHARE TRANSACTIONS AT NET 782,843,921 706,921,287
ASSET VALUE OF $1.00 PER
SHARE
PROCEEDS FROM SALES OF SHARES
87. REINVESTMENT OF 24,030,268 20,914,495
DISTRIBUTIONS FROM NET INTEREST
INCOME
88. COST OF SHARES REDEEMED (764,080,261) (660,356,695)
89.90. 42,793,928 67,479,087
NET INCREASE (DECREASE) IN
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
91. 92.TOTAL INCREASE 42,750,720 67,453,080
(DECREASE) IN NET ASSETS
93.NET ASSETS 94. 95.
96. BEGINNING OF PERIOD 743,928,091 676,475,011
97. END OF PERIOD $ 786,678,811 $ 743,928,091
FINANCIAL HIGHLIGHTS
98. YEARS ENDED JANUARY 31,
99. 1998 1997 1996 1995 1994
100.SELECTED
PER-SHARE
DATA
101.NET ASSET $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
VALUE,
BEGINNING
OF PERIOD
102.INCOME .032 .030 .034 .025 .020
FROM
INVESTMENT
OPERATIONS
NET INTEREST
INCOME
103.
104.LESS
DISTRIBUTIONS
105. FROM NET (.032) (.030) (.034) (.025) (.020)
INTEREST INCOME
106.NET ASSET $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
VALUE, END OF
PERIOD
107.TOTAL 3.26% 3.07% 3.46% 2.56% 1.99%
RETURN A, B
108.RATIOS AND
SUPPLEMENTAL
DATA
109.NET ASSETS, $ 786,679 $ 743,928 $ 676,475 $ 570,708 $ 462,124
END OF PERIOD
(000 OMITTED)
110.RATIO OF .50% .50% .50% .50% .50%
EXPENSES TO
AVERAGE
NET ASSETS
111.RATIO OF .50% .49% C .50% .50% .50%
EXPENSES TO
AVERAGE NET
ASSETS AFTER
EXPENSE
REDUCTIONS
112.RATIO OF NET 3.21% 3.03% 3.41% 2.55% 1.97%
INTEREST INCOME
TO AVERAGE NET
ASSETS
A TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE.
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
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.
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either
total return or yield. Total return reflects the change in 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 10 years total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY NY MUNI MONEY MARKET 3.13% 14.42% 40.88%
NY TAX-FREE MONEY MARKET FUNDS AVERAGE 3.05% 14.16% 40.38%
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 New York tax-free money market funds
average, which reflects the performance of 37 New York tax-free money
market funds with similar objectives tracked by IBC Financial Data,
Inc. over the past year.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1998 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY NY MUNI MONEY MARKET 3.13% 2.73% 3.49%
NY TAX-FREE MONEY MARKET FUNDS AVERAGE 3.05% 2.68% 3.45%
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
2/2/98 11/3/97 7/28/97 4/28/97 2/3/97
NEW YORK MUNICIPAL 2.99% 3.13% 3.12% 3.50% 2.88%
MONEY MARKET
NEW YORK TAX-FREE MONEY 2.92% 3.04% 3.01% 3.46% 2.86%
MARKET FUNDS AVERAGE
NEW YORK MUNICIPAL 5.27% 5.51% 5.49% 6.16% 5.07%
MONEY MARKET TAX-EQUIVALENT
Row: 1, Col: 1, Value: 2.99
Row: 1, Col: 2, Value: 2.92
Row: 2, Col: 1, Value: 3.13
Row: 2, Col: 2, Value: 3.04
Row: 3, Col: 1, Value: 3.12
Row: 3, Col: 2, Value: 3.01
Row: 4, Col: 1, Value: 3.5
Row: 4, Col: 2, Value: 3.46
Row: 5, Col: 1, Value: 2.88
Row: 5, Col: 2, Value: 2.86
New York
Municipal
Money Market
New York Tax-Free
Money Market
Funds Average
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period.
Yields for money market funds are usually for seven-day periods,
expressed as annual percentage rates. A yield that assumes income
earned is reinvested or compounded is called an effective yield. The
chart above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the New
York 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 1997 federal, state and New York City
income tax rate of 43.21%, but does not reflect the payment of the
alternative minimum tax.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
Yields on tax-free investments
are usually lower than yields on
taxable investments. However, a
straight comparison between the
two may be misleading because
it ignores the way taxes reduce
taxable returns. Tax-equivalent
yield - the yield you'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 fund
will maintain a $1 share price.
(checkmark)
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Diane McLaughlin, Portfolio Manager of Fidelity New
York Municipal Money Market Fund
Q. WHAT WAS THE MARKET ENVIRONMENT LIKE DURING THE PAST 12 MONTHS?
A. Economic growth was strong throughout the year: Real gross domestic
product - GDP adjusted for inflation - averaged 3.8% in 1997. In
addition, unemployment averaged 4.9% in 1997 - a rate that
historically would have meant higher inflation due to wage pressures.
However, 1997 was different. The 1997 producer price index (PPI) - a
measure of wholesale prices - dropped 1.2%, representing the biggest
one-year drop since 1986. Similarly, the consumer price index (CPI)
finished the year up 1.7%, the slowest gain in that same 11-year time
period. Several reasons are cited for this lack of inflation. Most
notably, productivity improvements over the past few years have
reduced the risk of inflationary pressures that had previously
accompanied similar periods of low unemployment. Nevertheless, the
Federal Reserve Board did raise the rate banks charge each other for
overnight loans - known as the fed funds target rate - from 5.25% to
5.50% in March. This move was seen as a preemptive strike against
future inflation that was expected to emerge along with robust
economic growth. Although economic strength persisted and the market
expected another rate hike, no signs of inflation arose - causing the
Fed to hold off on raising rates further.
Q. WHAT HAPPENED AT THE END OF THE PERIOD?
A. In October, the financial crisis in Southeast Asia took center
stage. This unusual turn of events shifted focus from growth in the
domestic economy to the possible impact the Asian crisis would have on
the economy in the U.S. and other parts of the world. The dollar
appreciated markedly against many Asian currencies, making Asian
imports to the U.S. less expensive and, consequently, suppressing
inflation. Many market observers became concerned that the U.S.
economy would slow significantly if exports to Asian countries began
to decline. At the end of the period, the Fed shifted to a more
neutral stance, giving itself flexibility to raise interest rates if
inflation started to surface or to lower rates if the spillover from
the crisis in Asia significantly hurt the U.S. economy.
Q. WHAT WAS YOUR STRATEGY AS THIS UNFOLDED?
A. At the beginning of the period, the fund's average maturity was 45
days. For most of the year, my investment focus was on the short end
of the money market yield curve, as increased supply of these
shorter-term securities made that part of the market attractive. The
fund did participate, however, in the one-year market during the
summer when supply became more plentiful and when yields factored in
potential future interest-rate increases. Despite purchases of these
securities, though, the fund's average maturity shortened to 37 days
at the end of the period.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on January 31, 1998, was 2.98%, compared
to 2.86% 12 months ago. The latest yield was the equivalent of a 5.25%
taxable yield for New York investors in the 43.21% combined federal,
state and New York City tax bracket. Through January 31, 1998, the
fund's 12-month total return was 3.13%, compared to 3.05% for the New
York tax-free money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I see two possible scenarios going forward. Domestic growth might
continue at the pace set in 1997, leading to an even tighter labor
market. In this case, I think eventual wage increases would be passed
on to the consumer - meaning inflation. On the other hand, the
spillover from the Asian turmoil may significantly dampen growth in
the U.S. and suppress inflation. I believe the Fed is waiting for more
evidence to evaluate the extent of the Asian situation, so I expect
steady policy in the near term. The market, however, has priced in an
easing - or lowering - of rates. I expect to keep the fund's average
maturity shorter than that of its peers, giving me the flexibility to
extend the fund's maturity if this easing outlook shifts and rates get
more attractive.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
NORM LIND ON HIS OUTLOOK FOR
NEW YORK'S FISCAL AND
ECONOMIC HEALTH:
"In November, 1997, Standard &
Poor's - one of the major
municipal bond credit rating
agencies - upgraded the credit
rating of certain New York state
agencies in recognition of the
strength of the state's economy
and more sound fiscal situation.
The impressive stock market rally
of 1996 and 1997 - which
translated into improving profits
at Wall Street firms and rising
income for those who work at them
- - had a lot to do with the state's
rising economic and fiscal
fortunes. In my view, the windfall
that came from Wall Street over
the past several years may not be
sustainable in the next several
years. The question then becomes:
Will the state and New York City
plan for a day when the good times
stop? The answer to that will be a
primary factor in determining the
state's and New York City's fiscal
well-being in the years to come."
FUND FACTS
GOAL: high current income free
from federal, state and New
York City income taxes by
investing primarily in longer-
term, investment-grade New
York municipal securities
FUND NUMBER: 071
TRADING SYMBOL: FTFMX
START DATE: July 10, 1984
SIZE: as of January 31, 1998,
more than $1.1 billion
MANAGER: Norm Lind, since
1993; manager, various Fidelity
and Spartan municipal income
funds; joined Fidelity in 1986
(checkmark)
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
1/31/98 7/31/97 1/31/97
0 - 30 69 74 73
31 - 90 19 13 8
91 - 180 8 6 12
181 - 397 4 7 7
WEIGHTED AVERAGE MATURITY
1/31/98 7/31/97 1/31/97
FIDELITY NEW YORK MUNICIPAL
MONEY MARKET FUND 37 DAYS 39 DAYS 45 DAYS
NEW YORK TAX-FREE
MONEY MARKET FUNDS AVERAGE* 44 DAYS 49 DAYS 51 DAYS
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JANUARY 31, 1998 AS OF JULY 31, 1997
Row: 1, Col: 1, Value: 63.0
Row: 1, Col: 2, Value: 20.0
Row: 1, Col: 3, Value: 2.5
Row: 1, Col: 4, Value: 13.0
Row: 1, Col: 5, Value: 1.5
Row: 1, Col: 6, Value: 25.8
Row: 1, Col: 1, Value: 67.0
Row: 1, Col: 2, Value: 16.0
Row: 1, Col: 3, Value: 3.0
Row: 1, Col: 4, Value: 12.5
Row: 1, Col: 5, Value: 1.5
Variable rate demand
notes (VRDNs) 63%
Commercial paper
(including CP mode) 20%
Tender bonds 2%
Municipal notes 14%
Other 1%
Variable rate demand
notes (VRDNs) 67%
Commercial paper
(incuding CP mode) 16%
Tender bonds 3%
Municipal notes 13%
Other 1%
* SOURCE: IBC'S MONEY FUND REPORT (registered trademark)
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
INVESTMENTS JANUARY 31, 1998
Showing Percentage of Total Value of Investment in Securities
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - 93.9%
Albany County Arpt. Auth. Participating
VRDN, Trust Receipts 1997, 3.70% (Liquidity
Facility Bank of New York) (b)(c) $ 2,800,000 $ 2,800,000
Albany County Ind. Dev. Auth. Rev. (Campus
Plaza 7 Inc. Proj.) 3.60%, LOC Marine Midland Bank, NA,
VRDN (b) 785,000 785,000
Amherst Ind. Dev. Auth. Ind. Dev. Rev. (Maple Dev. Proj.)
Series 1986, 3.60%, LOC Marine Midland Bank, NA,
VRDN (b) 900,000 900,000
Amsterdam Ind. Dev. Agcy. Ind. Dev. Rev. (Longview
Fiber Co.) Series 1987, 3.50%,
LOC ABN-AMRO Bank, NV, VRDN 1,880,000 1,880,000
Babylon Ind. Dev. Rev. (Southern Container Corp.) 3.65%,
LOC Fleet Bank, NA, VRDN (b) 3,600,000 3,600,000
Buffalo Gen. Oblig. RAN 4.40% 8/5/98,
LOC Landesbank Hessen-Thuringen 10,000,000 10,028,372
Byram Hills City School Dist. BAN 4.25% 7/3/98 1,631,000 1,633,902
Chemung County Ind. Dev. Agcy. Rev. (McWayne Inc. Proj.)
Series 1992 A, 3.60%, LOC AmSouth Bank, NA, VRDN (b) 2,670,000
2,670,000
Chemung County Ind. Dev. Agcy. Ind. Dev. Rev. (MMARS
Second Prog.) (Trayer Products Inc.) Series A, 3.60%, LOC
Marine Midland Bank, NA, VRDN 1,000,000 1,000,000
Columbia County Ind. Dev. Auth. Ind. Dev. Rev. (Philip Morris
Proj.) 3.65%, VRDN 1,800,000 1,800,000
Commack Unified School Dist. BAN 4.25% 6/26/98 2,000,000 2,003,688
Erie County Gen. Oblig. RAN:
Series A, 4.50% 6/25/98, LOC Union Bank of Switzerland 3,000,000
3,007,965
Series B, 4.50% 10/29/98, LOC Union Bank of Switzerland 4,900,000
4,923,758
Erie County Ind. Dev. Auth., VRDN:
(Canfibre of Lackawanna) Series 1997, 3.55%
(Bayerische Landesbank Girozentrale Guaranteed) (b) 24,700,000
24,700,000
(Nat'l. Wire Products) Series 1988 E,
3.60%, LOC Marine Midland Bank, NA (b) 180,000 180,000
(Niagara Envelope Co.Proj.)
3.60%, LOC Bankers Trust Co. (b) 1,600,000 1,600,000
(Uniland Dev./Buffalo Campus) Series 1986 D,
3.60%, LOC Marine Midland Bank, NA (b) 1,320,000 1,320,000
Huntington Unified School Dist. TAN:
4.10% 6/29/98 3,600,000 3,603,597
4.25% 6/29/98 3,800,000 3,805,819
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Islip Gen. Oblig. BAN 4.10% 7/24/98 $ 2,700,000 $ 2,702,623
Islip Ind. Dev. Agcy. Rev. (Interstate Litho Corp.) Series 1996 A,
3.60%, LOC Marine Midland Bank, NA, VRDN (b) 1,350,000 1,350,000
Jefferson County Ind. Dev. Agcy. Ind. Dev. Rev. (Fisher Gauge
Facs) Series 1996, 3.60%, LOC Fleet Bank, NA, VRDN (b) 2,700,000
2,700,000
Monroe County Arpt. Auth. Participating VRDN,
Series PT-98, 3.65%, LOC Bayerische
Hypotheken-und Wechsel Bank (b)(c) 1,745,000 1,745,000
Monroe County Ind. Dev. Agcy. Rev. VRDN:
(Advent Tool & Mold) Series 1990 D, 3.60%,
LOC Marine Midland Bank, NA (b) 700,000 700,000
(AJL Manufacturing.) Series 1996 A, 3.60%
LOC Marine Midland Bank, NA (b) 1,900,000 1,900,000
(Illbruck Office Prod. Inc.) Series 1997, 3.55%,
LOC Key Bank, NA (b). 3,690,000 3,690,000
Nassau County Gen. Oblig.:
BAN Series C, 4.25% 3/17/98 5,400,000 5,403,064
TAN Series A, 4.25% 3/31/98 12,935,000 12,945,548
Nassau County Ind. Dev. Auth. (CR/PL Inc. Proj.)
Series 1985, 3.65%, LOC First Nat'l. Bank of
Chicago, VRDN 4,930,000 4,930,000
New Rochelle County School Dist. TAN 4.25% 6/30/98 4,400,000
4,407,717
New York City Gen. Oblig.:
Bonds CP mode:
Series H-3, 3.80% 3/25/98 (FSA Insured)
(BPA State Street Bank & Trust Co.) 1,900,000 1,900,000
Series H-3, 3.55% 4/9/98 (FSA Insured)
(BPA State Street Bank & Trust Co.) 4,100,000 4,100,000
Series 1994 H-2, 3.55% 4/9/98 (MBIA Insured)
(BPA Banco de Santander, SA) 2,700,000 2,700,000
Series 1994 H-5, 3.70% 3/31/98 (MBIA Insured)
(BPA Landesbank Hessen-Thuringen) 6,700,000 6,700,000
Series 1994 H-6, 3.55% 4/9/98 (MBIA Insured)
(BPA RaboBank) 1,600,000 1,600,000
Participating VRDN (c):
Series FR-26, 4%
(Liquidity Facility Bank of New York) 2,110,000 2,110,000
Series I BTP-234, 3.55%
(Liquidity Facility Bankers Trust Co.) 3,890,000 3,890,000
Series 1994 C-3, 3.68% (Liquidity Facility Citibank) 17,000,000
17,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Gen. Oblig.: - continued
RAN Series 1998 A, 4.50% 6/30/98,
LOC Westdeutsche Landesbank Girozentrale,
LOC Morgan Guaranty Trust Co., NY $ 35,850,000 $ 35,941,843
VRDN:
Series 1992 D, 3.50% (FGIC Insured) (BPA FGIC-SPI) 14,000,000
14,000,000
Series 1994 A-7, 3.65%,
LOC Morgan Guaranty Trust Co., NY 3,000,000 3,000,000
Series 1994 A-7, 3.65%,
LOC Morgan Guaranty Trust Co., NY 2,900,000 2,900,000
Series 1994 E-5, 3.65%,
LOC Morgan Guaranty Trust Co., NY 1,200,000 1,200,000
Series 1995 F-5, 3.45%,
LOC Bayerische Landesbank Girozentrale 600,000 600,000
New York City Health & Hosp. Corp. (Health Sys.)
Series 1997 A, 3.30%, LOC Morgan Guaranty
Trust Co., NY, VRDN 16,100,000 16,100,000
New York City Hsg. Dev. Corp. Multi-Family Hsg. Rev., VRDN:
(Gerard Court Proj.) Series 1997A, 3.65% LOC
Bayerische Hypotheken-und Wechsel Bank (b) 4,600,000 4,600,000
(Related-Carnegie Park) Series 1997 A, 3.35%
(Fannie Mae Guaranteed) 11,400,000 11,400,000
(Related-Monterey) Series 1997 A,
3.35% (Fannie Mae Guaranteed) 5,600,000 5,600,000
(Related-Tribeca Tower) Series 1997 A, 3.45%
(Fannie Mae Guaranteed) (b) 6,300,000 6,300,000
New York City Hsg. Dev. Corp. Multi-Family Mtg. Rev., VRDN:
(100 Jane St. Dev. Proj.) Series 1995 A, 3.50%,
LOC Fleet Bank, NA (b) 9,600,000 9,600,000
(400 West 59th Str. Proj.):
3.40%, LOC Bayerische Hypotheken-und
Wechsel Bank (b) 15,200,000 15,200,000
3.50%, LOC Bayerische Hypotheken-und
Wechsel Bank (b) 25,700,000 25,700,000
3.50%, LOC Bayerische Hypotheken-und
Wechsel Bank (b) 7,000,000 7,000,000
(West 43rd Str. Dev.) Series1996 B, 3.50%,
LOC Fleet Bank, NA 25,300,000 25,300,000
New York City Hsg. Dev. Corp. Residential Rev. (East 17th
Str. Property) Series 1993 A, 3.65%,
LOC Chase Manhattan Bank, VRDN 800,000 800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Hsg. Fin. Agcy. Rev. (240 East 39th Str.)
Series 1997-A, 3.55%, LOC Chase Manhattan
Bank, VRDN (b) $ 35,600,000 $ 35,600,000
New York City Ind. Dev. Agcy.:
Rev. (Korean Airlines Proj.) VRDN:
Series 1997-B, 3.50%, LOC Bankers Trust Co. (b) 5,000,000 5,000,000
Series 1997-C, 3.40%, LOC Bankers Trust Co. (b) 9,100,000
9,100,000
Participating VRDN (c):
Series 1996-H, 3.65% (Liquidity Facility Caisse
des Depots et Consignations) (b) 1,795,000 1,795,000
Series 1997-E, 3.65% (Liquidity Facility Caisse
des Depots et Consignations) (b) 5,220,000 5,220,000
Series 1997-H, 3.65% (Liquidity Facility Caisse
des Depots et Consignations) (b) 3,740,000 3,740,000
New York City Metropolitan Trans. Auth. Participating VRDN (c):
Series 1997 D, 3.65%
(Liquidity Facility Merrill Lynch & Co.) 8,900,000 8,900,000
Series 1997 P, 3.65%
(Liquidity Facility CoreStates Bank) 12,395,000 12,395,000
3.63% (Liquidity Facility Citibank) 15,800,000 15,800,000
New York City Muni. Assistance Corp.:
Bonds Series L, 4.50% 7/1/98 4,525,000 4,537,490
Participating VRDN, Series G, 3.55%
(Liquidity Facility Bankers Trust Co.) (c) 10,500,000 10,500,000
Series K-3, 3.45% 4/8/98,
LOC Landesbank Hessen-Thuringen, CP 12,300,000 12,300,000
New York City Muni. Wtr. Fin. Auth.:
CP:
Series 1:
3.80% 3/19/98, LOC Canadian
Imperial Bank of Commerce 5,700,000 5,700,000
3.80% 3/20/98, LOC Canadian
Imperial Bank of Commerce 18,100,000 18,100,000
Series 3:
3.55% 2/27/98, LOC Bank of Nova Scotia,
LOC Toronto-Dominion Bank 8,700,000 8,700,000
3.75% 4/7/98 LOC Bank of Nova Scotia,
LOC Toronto-Dominion Bank 11,600,000 11,600,000
Series 4, 3.80% 3/31/98,
LOC Credit Suisse First Boston 3,200,000 3,200,000
Series 5 B:
3.50% 3/26/98 1,000,000 1,000,000
3.80% 3/23/98 7,100,000 7,100,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York City Muni. Wtr. Fin. Auth.: - continued
Participating VRDN (c):
Series 1997 B:
3.65% (Liquidity Facility Societe Generale) $ 1,800,000 $
1,800,000
3.65% (Liquidity Facility Societe Generale) 4,500,000 4,500,000
New York City Trust for Cultural Resources (The Jewish
Museum) 4% (BPA Sumitomo Bank, Ltd.) VRDN 3,300,000 3,300,000
New York State Dorm. Auth.:
Participating VRDN (c):
Series PA-60, 3.60%
(Liquidity Facility Merrill Lynch & Co.) 4,500,000 4,500,000
Series 97C3202, 3.63% (Liquidity Facility Citibank) 3,000,000
3,000,000
Rev. Bonds (Memorial Sloan-Kettering Cancer Ctr.) CP mode:
Series 1989-A:
3.45% 4/6/98, LOC Chase Manhattan Bank 4,800,000 4,800,000
3.55% 4/6/98, LOC Chase Manhattan Bank 1,500,000 1,500,000
3.65% 4/6/98, LOC Chase Manhattan Bank 6,160,000 6,160,000
Series 1989-B:
3.45% 4/6/98, LOC Chase Manhattan Bank 13,400,000 13,400,000
3.50% 3/30/98, LOC Chase Manhattan Bank 2,150,000 2,150,000
Series 1989-C,
3.45% 4/6/98, LOC Chase Manhattan Bank 2,100,000 2,100,000
New York State Energy Research & Dev. Auth.:
Rev. (Long Island Lighting Co.) VRDN:
Series 1993, 3.55%,
LOC Toronto-Dominion Bank (b) 11,300,000 11,300,000
Series 1993 A, 3.55%,
LOC Toronto-Dominion Bank (b) 6,200,000 6,200,000
Series 1994 A, 3.50%,
LOC Union Bank of Switzerland (b) 14,800,000 14,800,000
Series 1995 A, 3.50%,
LOC Union Bank of Switzerland (b) 8,800,000 8,800,000
Participating VRDN (c):
Series 943202, 3.68% (Liquidity Facility Citibank) 15,400,000
15,400,000
3.63% (Liquidity Facility Citibank) 8,700,000 8,700,000
New York State Energy Research & Dev. Auth.
Poll. Cont. Rev., VRDN:
(Niagara Mohawk Pwr. Proj.) Series 1988 A, 3.95%,
LOC Morgan Guaranty Trust Co., NY (b) 3,200,000 3,200,000
(New York Elec. & Gas Corp.) Series 1994 D,
3.60%, LOC Union Bank of Switzerland 1,300,000 1,300,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Gen. Oblig.:
Bonds Series 1997 A, 3.50% 4/9/98,
LOC Bayerische Landesbank Girozentrale, CP mode $ 3,200,000 $
3,200,000
CP:
Series S:
3.55% 2/23/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 22,450,000 22,450,000
3.60% 3/2/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 10,000,000 10,000,000
3.70% 3/10/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 5,000,000 5,000,000
3.75% 3/10/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 2,000,000 2,000,000
Series T, 3.45% 4/8/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 6,500,000 6,500,000
Series U, 3.45% 4/1/98 (Liquidity Facility
Westdeutsche Landesbank Girozentrale) 6,200,000 6,200,000
New York State Hsg. Dev. Corp. Mtg. Rev. (York Ave. Proj.)
Series 1994 A, 3.50% (92nd Realty Co.)
LOC Midland Bank PLC, VRDN (b) 15,650,000 15,650,000
New York State Hsg. Fin. Agcy.:
Rev., VRDN:
(East 48th Str. Proj.) Series 1995 A, 3.50%,
LOC Fleet Bank, NA (b) 4,700,000 4,700,000
(Normandie Court II Proj.) Series 1987 A, 3.30%,
LOC Fleet Bank, NA (b) 1,500,000 1,500,000
(240 East 39th Str.) Series 1997 A, 3.50%,
LOC Fleet Bank, NA (b) 17,000,000 17,000,000
(Tribeca Park) Series 1997 A, 3.50%,
LOC Bayerische Hypotheken-und Wechsel Bank (b) 6,500,000 6,500,000
New York State Hsg. Fin. Agcy. Multi-Family Hsg. Rev.,
Series 1988 A, 3.40%, (AMBAC Insured)
(BPA Bank of Tokyo-Mitsubishi Ltd.) VRDN 1,000,000 1,000,000
New York State Local Gov't Assistance Corp.:
Participating VRDN, Series 1997 SG-99, 3.65%
(Liquidity Facility Societe Generale) (c) 6,150,000 6,150,000
Rfdg. Bonds Series 1997 B, 4.50% 4/1/98 5,010,000 5,016,122
New York State Med. Care Facs. Fin. Agcy. Participating VRDN:
Series SG1, 3.60% (Liquidity Facility Societe Generale) (c) 7,520,000
7,520,000
Series PA-89, 3.65%
(Liquidity Facility Merrill Lynch & Co.) (c) 4,895,000 4,895,000
Series PT-145A, 3.65% (Liquidity Facility Bayerische
Hypotheken-und Wechsel Bank) (c) 4,655,000 4,655,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
New York State Mtg. Agcy. Homeowner Mtg. Agency
Participating VRDN (c):
Series PA-87, 3.65%
(Liquidity Facility Merrill Lynch & Co.) (b) $ 3,300,000 $ 3,300,000
Series PA-153, 3.65%
(Liquidity Facility Merrill Lynch & Co.) (b) 2,000,000 2,000,000
Series PT-11, 3.65%
(Liquidity Facility Commerzbank, AG) 7,810,000 7,810,000
Series PT-15 A, 3.65%
(Liquidity Facility Commerzbank, AG) (b) 6,880,000 6,880,000
Series PT-15 B, 3.65%
(Liquidity Facility Commerzbank, AG) (b) 2,720,000 2,720,000
Series PT-26, 3.65%
(Liquidity Facility Merrill Lynch & Co.) (b) 6,790,000 6,790,000
Series PT-108, 3.65%
(Liquidity Facility Banco de Santander, SA) (b) 3,500,000
3,500,000
Series 1997, 3.75%
(Liquidity Facility Bank of New York) (b) 3,400,000 3,400,000
Series 1997 G, 3.65% (Liquidity Facility
Caisse des Depots et Consignations) (b) 7,970,000 7,970,000
Series 1997 J, 3.70%
(Liquidity Facility CoreStates Bank) (b) 5,400,000 5,400,000
New York State Pwr. Auth.:
CP:
3.80% 2/12/98 (Liquidity Facility Bank
of America Nat'l. Trust & Savings) 2,800,000 2,800,000
3.80% 2/12/98 (Liquidity Facility Bank
of America Nat'l. Trust & Savings) 5,400,000 5,400,000
3.85% 3/18/98 (Liquidity Facility Bank
of America Nat'l. Trust & Savings) 8,900,000 8,900,000
3.50% 3/19/98 (Liquidity Facility Bank
of America Nat'l. Trust & Savings) 3,800,000 3,800,000
3.45% 4/6/98 (Liquidity Facility
Bank of America Nat'l. Trust & Savings) 1,800,000 1,800,000
Rev. Bonds, 3.75%, tender 3/1/98 22,000,000 22,000,000
Series 2, 3.50% 3/5/98 (Liquidity Facility
Bank of Nova Scotia) 20,000,000 20,000,000
New York State Urban Dev. Corp. Participating VRDN,
Series BT-113, 3.60% (Liquidity Facility Bankers Trust Co.) (c)
7,854,000 7,854,000
Northport-East Northport Unified School Dist.
TAN 4.25% 6/30/98 9,500,000 9,514,372
Oneida County Ind. Dev. Agcy. Ind. Dev. Rev. (Utica Corp.)
Series 1996, 3.60%, LOC Fleet Bank, NA, VRDN (b) 2,800,000 2,800,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK - CONTINUED
Oswego County Ind. Dev. Agcy. Poll. Cont. Rev. Rfdg.
(Philip Morris Co. Proj.) 3.55%, VRDN $ 9,500,000 $ 9,500,000
Oyster Bay Gen. Oblig. BAN 4% 2/27/98 5,200,000 5,200,777
Plainview-Old Bethpage County School Dist.
TAN 4.25% 6/30/98 6,720,000 6,729,333
Riverhead Central School Dist. BAN Series 1997
4.25% 12/4/98 4,300,000 4,312,882
Rochester Gen. Oblig.:
BAN Series I, 4% 3/10/98 4,398,000 4,399,418
Bonds 4% 10/1/98 2,900,000 2,902,541
St. Lawrence County Ind. Dev. Agcy. Envir. Impt. Rev.
(Reynolds Metals Proj.) 3.55%, LOC Royal
Bank of Canada, VRDN 6,400,000 6,400,000
Saratoga County Ind. Dev. Agcy. (Spurlock Adhesives Inc.)
Series 1997 A, 3.75%, LOC KeyBank, NA, VRDN 3,300,000 3,300,000
Schenectady Ind. Dev. Agcy. Rev.
(Super Steel Schenectady Proj.) Series 1996 A, 3.60%,
LOC Key Bank of New York, VRDN 2,400,000 2,400,000
Seneca County Ind. Dev. Agcy. Rev.
(New York Chiropractic College) Series 1997, 3.50%,
LOC Fleet Bank, NA, VRDN 3,900,000 3,900,000
Southampton Unified School Dist. TAN 4.25% 6/25/98 5,200,000
5,208,107
Suffolk County Gen. Oblig. TAN
Series II, 4.50% 9/10/98, LOC National Westminster Bank,
LOC Canadian Imperial Bank of Commerce 19,300,000 19,375,389
Suffolk County Ind. Dev. Agcy. Rev.
(Maryhaven Center of Hope Inc.) Series 1997 A,
3.60%, LOC Key Bank, NA, VRDN 3,125,000 3,125,000
Suffolk County Ind. Dev. Agcy. Rev. (Nissequogue
Cogeneration Partner Fac.) 3.55%, LOC Toronto-Dominion
Bank, VRDN (b) 15,700,000 15,700,000
Tompkins County Gen. Oblig. BAN 4.25% 4/10/98 4,224,400 4,226,212
Triborough Bridge & Tunnel Auth. Rev. Participating VRDN,
Series BT-162, 3.55% (Liquidity Facility Bankers
Trust Co.) (c) 2,703,000 2,703,000
West Irindequoit County School Dist. BAN 4.50% 4/10/98 1,400,000
1,401,215
Westchester County Board of Coop. Edl. Svc. RAN
Series 1997, 4.25% 7/10/98 2,750,000 2,754,668
Wyoming County Ind. Dev. Auth. (American Precision)
Series 1988 A, 3.60%, LOC Marine Midland
Bank, NA, VRDN (b) 520,000 520,000
1,005,788,422
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW YORK & NEW JERSEY - 6.1%
New Jersey & New York Port Auth.:
Participating VRDN (c):
Series 6, 3.65% (Liquidity Facility Societe Generale) (b) $ 6,200,000
$ 6,200,000
Series 6, 3.65% (Liquidity Facility Societe Generale) (b) 9,100,000
9,100,000
Series 1997, 3.70%
(Liquidity Facility Bank of New York) 3,660,000 3,660,000
Series 1997, 3.70%
(Liquidity Facility Bank of New York) (b) 9,800,000 9,800,000
VRDN (New Jersey Equip. Notes):
Series 1997-1C, 3.55% 3,800,000 3,800,000
Series 1997-2, 3.65% (b) 1,600,000 1,600,000
Series 1997-3A, 3.55% 10,200,000 10,200,000
Series 1997-4A, 3.65% (b) 2,300,000 2,300,000
New York & New Jersey Port Auth. Spl. Oblig. Rev. Series 6,
3.65% (Liquidity Facility Bank of Nova Scotia) VRDN 1,300,000
1,300,000
New York & New Jersey Port Auth. Spl. Proj.
Participating VRDN, Series 6, 3.65% (Liquidity Facility
Societe Generale) (b) 8,755,000 8,755,000
New York & New Jersey Versatile Structure VRDN:
3.55% (BPA Morgan Guaranty Trust Co., NY) 4,950,000 4,950,000
Series 3, 3.60% (BPA Morgan Guaranty Trust Co., NY) 3,300,000
3,300,000
64,965,000
TOTAL INVESTMENTS - 100% $1,070,753,422
Total Cost for Income Tax Purposes $ 1,070,753,422
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2. Private activity obligations whose interest is subject to the
federal alternative minimum tax for individuals.
3. Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At January 31, 1998, the fund had a capital loss carryforward of
approximately $124,000 of which $38,000, $3,000, $33,000 and $50,000
will expire on January 31, 2001, 2004, 2005 and 2006, respectively.
During fiscal year ended 1998, 100% of the fund's income dividends was
free from federal income tax, and 34.61% of the fund's income
dividends was subject to the federal alternative minimum tax
(unaudited).
FIDELITY NEW YORK MUNICIPAL MONEY MARKET FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1998
4.ASSETS 5. 6.
7.INVESTMENT IN SECURITIES, AT 8. $ 1,070,753,422
VALUE - SEE ACCOMPANYING
SCHEDULE
9.CASH 10. 17,080,930
11.INTEREST RECEIVABLE 12. 7,469,404
13. 14.TOTAL ASSETS 15. 1,095,303,756
16.LIABILITIES 17. 18.
19.PAYABLE FOR INVESTMENTS $ 12,020,234 20.
PURCHASED
21.DISTRIBUTIONS PAYABLE 70,580 22.
23.ACCRUED MANAGEMENT FEE 333,331 24.
25.OTHER PAYABLES AND 237,437 26.
ACCRUED EXPENSES
27. 28.TOTAL LIABILITIES 29. 12,661,582
30.31.NET ASSETS 32. $ 1,082,642,174
33.NET ASSETS CONSIST OF: 34. 35.
36.PAID IN CAPITAL 37. $ 1,082,768,937
38.ACCUMULATED NET REALIZED 39. (126,763)
GAIN (LOSS) ON INVESTMENTS
40.41.NET ASSETS, FOR 42. $ 1,082,642,174
1,082,603,646 SHARES
OUTSTANDING
43.44.NET ASSET VALUE, 45. $1.00
OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
($1,082,642,174 (DIVIDED BY)
1,082,603,646 SHARES)
STATEMENT OF OPERATIONS
YEAR ENDED JANUARY 31, 1998
46.47.INTEREST INCOME 48. $ 34,161,169
49.EXPENSES 50. 51.
52.MANAGEMENT FEE $ 3,589,395 53.
54.TRANSFER AGENT FEES 1,626,693 55.
56.ACCOUNTING FEES AND 144,596 57.
EXPENSES
58.NON-INTERESTED TRUSTEES' 3,627 59.
COMPENSATION
60.CUSTODIAN FEES AND 50,009 61.
EXPENSES
62.REGISTRATION FEES 71,580 63.
64.AUDIT 32,387 65.
66.LEGAL 24,939 67.
68.REPORTS TO SHAREHOLDERS 39,799 69.
70.MISCELLANEOUS 3,639 71.
72. TOTAL EXPENSES BEFORE 5,586,664 73.
REDUCTIONS
74. EXPENSE REDUCTIONS (2,178) 5,584,486
75.76.NET INTEREST INCOME 77. 28,576,683
78.REALIZED AND UNREALIZED 80. (52,805)
GAIN (LOSS)
79.NET REALIZED GAIN (LOSS) ON
INVESTMENT SECURITIES
81.INCREASE (DECREASE) IN NET 82. (2,400)
UNREALIZED GAIN FROM
ACCRETION
OF DISCOUNT
83.84.NET GAIN (LOSS) 85. (55,205)
86.87.NET INCREASE IN NET 88. $ 28,521,478
ASSETS RESULTING FROM
OPERATIONS
89.OTHER INFORMATION 91.
90.EXPENSE REDUCTIONS
92. CUSTODIAN CREDITS 93. $ 2,178
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31,
1998 1997
94.INCREASE (DECREASE) IN NET
ASSETS
95.OPERATIONS $ 28,576,683 $ 23,880,427
NET INTEREST INCOME
96. NET REALIZED GAIN (LOSS) (52,805) (33,281)
97. INCREASE (DECREASE) IN NET (2,400) 2,400
UNREALIZED GAIN FROM
ACCRETION
OF DISCOUNT
98. 99.NET INCREASE 28,521,478 23,849,546
(DECREASE) IN NET ASSETS
RESULTING
FROM OPERATIONS
100.DISTRIBUTIONS TO (28,576,683) (23,880,427)
SHAREHOLDERS FROM NET INTEREST
INCOME
101.SHARE TRANSACTIONS AT NET 2,792,087,742 2,139,223,899
ASSET VALUE OF $1.00 PER
SHARE
PROCEEDS FROM SALES OF SHARES
102. REINVESTMENT OF 27,750,434 23,071,469
DISTRIBUTIONS FROM NET INTEREST
INCOME
103. COST OF SHARES REDEEMED (2,617,216,206) (2,105,054,985)
104.105. 202,621,970 57,240,383
NET INCREASE (DECREASE) IN
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
106. 202,566,765 57,209,502
107.TOTAL INCREASE
(DECREASE) IN NET ASSETS
108.NET ASSETS 109. 110.
111. BEGINNING OF PERIOD 880,075,409 822,865,907
112. END OF PERIOD $ 1,082,642,174 $ 880,075,409
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<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
113. YEARS ENDED JANUARY 31,
114. 1998 1997 1996 1995 1994
115.SELECTED
PER-SHARE
DATA
116.NET ASSET $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
VALUE,
BEGINNING
OF PERIOD
117.INCOME .031 .029 .033 .024 .018
FROM
INVESTMENT
OPERATIONS
NET INTEREST
INCOME
118.
119.LESS
DISTRIBUTIONS
120. FROM NET (.031) (.029) (.033) (.024) (.018)
INTEREST INCOME
121.NET ASSET $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
VALUE, END OF
PERIOD
122.TOTAL 3.13% 2.94% 3.32% 2.44% 1.84%
RETURN
123.RATIOS AND
SUPPLEMENTAL
DATA
124.NET ASSETS, $ 1,082,642 $ 880,075 $ 822,866 $ 737,282 $ 608,444
END OF PERIOD
(000 OMITTED)
125.RATIO OF .61% .61% .62% .60% .62%
EXPENSES TO
AVERAGE
NET ASSETS
126.RATIO OF NET 3.10% 2.89% 3.26% 2.42% 1.83%
INTEREST INCOME
TO AVERAGE NET
ASSETS
</TABLE>
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JANUARY 31, 1998
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity New York Municipal Income Fund (the income fund) is a fund of
Fidelity New York Municipal Trust and Spartan New York Municipal Money
Market Fund and Fidelity New York Municipal Money Market Fund (the
money market funds) are funds of Fidelity New York 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 New York Municipal Trust and Fidelity New York 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 permit management to make certain estimates and
assumptions at the date of the financial statements. Effective March
24, 1998, Fidelity New York Municipal Income Fund will change its name
to Spartan New York Municipal Income Fund. The following summarizes
the significant accounting policies of the income fund 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 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.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
EXPENSES. Most expenses of Fidelity New York Municipal Trust II 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.
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 futures. The 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) (formerly FMR Texas Inc.), an
affiliate of Fidelity Management & Research Company (FMR). The Cash
Fund is an open-end money market fund available only to investment
companies and other accounts managed by FMR and its affiliates. The
Cash Fund seeks preservation of capital, liquidity, and current income
by investing in high-quality, short-term municipal securities of
various states and municipalities. Income distributions from the Cash
Fund are declared daily and paid monthly from net interest income.
Income distributions earned by the funds are recorded as interest
income in the accompanying financial statements.
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
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS - CONTINUED
the fund's exposure to the underlying instrument or hedge other fund
investments. Futures contracts involve, to varying degrees, risk of
loss in excess of the futures variation margin reflected in the
Statement of Assets and Liabilities. The underlying face amount at
value of any open futures contracts at period end is shown in the
schedule of investments under the caption "Futures Contracts." This
amount reflects each contract's exposure to the underlying instrument
at period end. 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. Information regarding restricted securities is included
under the caption "Other Information" at the end of each applicable
fund's schedule of investments.
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. With
respect to purchase commitments, each fund identifies securities as
segregated in its custodial records with a value at least equal to the
amount of the commitment. The payables and receivables associated with
the purchases and sales of when-issued securities having the same
settlement date and broker are offset. When-issued securities that
have been purchased from and sold to different brokers are reflected
as both payables and receivables in the applicable statements of
assets and liabilities under the caption "Delayed delivery." Losses
may arise due to change 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.
3. PURCHASES AND SALES OF INVESTMENTS.
INCOME FUND. Purchases and sales of securities other than short-term
securities, aggregated $173,262,088 and $171,942,191, respectively.
The market value of futures contracts opened and closed during the
period amounted to $81,558,913 and $63,332,225, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the investment adviser for Fidelity New York
Municipal Income Fund and Fidelity New York 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 each fund. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net
assets of all the mutual funds advised by FMR. The rates ranged from
.1100% to .3700% for the period. The annual individual fund fee rate
is .25%. In the event that these rates were lower than the contractual
rates in effect during the period, FMR voluntarily implemented the
above rates, as they resulted in the same or a lower management fee.
For the period, the management fees were equivalent to an annual rate
of .39% of average net assets for Fidelity New York Municipal Income
Fund and Fidelity New York Municipal Money Market Fund.
As Spartan New York Municipal Money Market's 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 .50% of the fund's
average net assets.
FMR also bears the cost of providing shareholder services to Spartan
New York 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 $9,476 for the period.
SUB-ADVISER FEE. As the money market fund's investment sub-adviser,
FIMM 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 Fidelity
New York Municipal Income Fund and Fidelity New York 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
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 annual
rates of .11% and .18% of average net assets for Fidelity New York
Municipal Income Fund and Fidelity New York Municipal Money Market
Fund, respectively.
Fidelity New York Municipal Money Market Fund shareholders
participating in the Fidelity Ultra Service Account(registered
trademark) Program (the Program) pay a $5.00 monthly fee to Fidelity
Brokerage Services, Inc. (FBSI), an affiliate of FMR, for performing
services associated with the Program. For the period, fees paid to
FBSI by shareholders participating in the Program amounted to $37,135.
Effective September 1, 1997, the monthly fee was eliminated.
5. EXPENSE REDUCTIONS.
Effective April 1, 1997, FMR voluntarily agreed to reimburse the
income fund's operating expenses (excluding interest, taxes, brokerage
commissions and extraordinary expenses) above an annual rate of .55%
of the fund's average net assets. Effective January 9, 1998, this
limitation was changed to .53%.
In addition, Fidelity New York Municipal Income Fund, Fidelity New
York Municipal Money Market Fund and FMR (on behalf of Spartan New
York Municipal Money Market Fund) have entered into arrangements with
their custodian and transfer agent whereby credits realized on
uninvested cash balances were used to offset a portion of each
applicable funds' expenses.
For the period, the reductions under these arrangements are shown
under the caption "Other Information" on each applicable fund's
Statement of Operations.
6. SHARE TRANSACTIONS.
Share transactions for the income fund were as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SHARES DOLLARS SHARES DOLLARS
YEAR ENDED YEAR ENDED YEAR ENDED YEAR ENDED
JANUARY 31, JANUARY 31, JANUARY 31, JANUARY 31,
1998 1998 1997 1997
SHARES SOLD 9,891,184 $ 124,707,337 4,305,312 $ 52,530,432
ISSUED IN EXCHANGE FOR THE 24,405,423 315,806,182 - -
NET ASSETS OF SPARTAN
NEW YORK MUNICIPAL
INCOME FUND
ISSUED IN EXCHANGE FOR THE 4,167,207 54,257,038 - -
NET ASSETS OF SPARTAN NEW
YORK INTERMEDIATE
MUNICIPAL INCOME FUND
ISSUED IN EXCHANGE FOR THE 23,431,479 303,437,659 - -
NET ASSETS OF FIDELITY
NEW YORK INSURED
MUNICIPAL INCOME FUND
REINVESTMENT OF DISTRIBUTIONS 1,508,191 19,001,163 1,372,180 16,719,201
SHARES REDEEMED (8,405,380) (105,564,962) (7,633,180) (93,100,425)
NET INCREASE (DECREASE) 54,998,104 $ 711,644,417 (1,955,688) $ (23,850,792)
</TABLE>
7. MERGER INFORMATION.
On January 8, January 15, and January 22, 1998, Fidelity New York
Municipal Income Fund (the fund) acquired all of the assets and
assumed all of the liabilities of Spartan New York Municipal Income
Fund, Spartan New York Intermediate Municipal Income Fund and Fidelity
New York Insured Municipal Income Fund (target funds), respectively.
Each acquisition was approved by the shareholders of the target funds
on December 17, 1997. Based on the opinion of fund counsel, the
reorganizations qualified as tax-free reorganizations for federal
income tax purposes with no gain or loss recognized to the funds or
their shareholders.
The fund's acquisition of Spartan New York Municipal Income Fund was
accomplished by an exchange of 24,405,423 shares of the fund for
28,222,179 shares then outstanding of Spartan New York Municipal
Income Fund(each valued at $11.19). Spartan New York Municipal Income
Fund's net assets, including $23,652,998 of unrealized appreciation
were combined with the fund for total net assets after the acquisition
of $769,705,267.
The fund's acquisition of Spartan New York Intermediate Municipal
Income Fund was accomplished by an exchange of 4,167,207 shares of the
fund for 5,277,922 shares then outstanding of Spartan New York
Intermediate Municipal Income Fund(each valued at $10.28). Spartan New
York Intermediate Municipal Income Fund's net assets, including
$3,126,064 of unrealized appreciation were combined with the fund for
total net assets after the acquisition of $830,969,959.
The fund's acquisition of Fidelity New York Insured Municipal Income
Fund was accomplished by an exchange of 23,431,479 shares of the fund
for 24,974,293 shares then outstanding of Fidelity New York Insured
Municipal Income Fund (each valued at $12.15). Fidelity New York
Insured Municipal Income Fund's net assets, including $21,188,713 of
unrealized appreciation were combined with the fund for total net
assets after the acquisition of $1,130,460,046.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity New York Municipal Trust and Fidelity New
York Municipal Trust II and the Shareholders of Fidelity New York
Municipal Income Fund, Spartan New York Municipal Money Market Fund
and Fidelity New York Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments (except for Moody's and
Standard & Poor's ratings), 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 Fidelity
New York Municipal Income Fund (a fund of Fidelity New York Municipal
Trust) and Spartan New York Municipal Money Market Fund and Fidelity
New York Municipal Money Market Fund (each a fund of Fidelity New York
Municipal Trust II) at January 31, 1998, the results of their
operations for the year then ended, and 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 Fidelity New York
Municipal Trust and Fidelity New York Municipal Trust II's 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 January 31, 1998 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were
not received, provide a reasonable basis for the opinion expressed
above.
/s/Price Waterhouse LLP Price Waterhouse LLP
Boston, Massachusetts
March 5, 1998
DISTRIBUTIONS
The Board of Trustees of Fidelity New York Municipal Income Fund (a
fund of Fidelity New York Municipal Trust), Spartan New York
Intermediate Municipal Income Fund and Fidelity New York Insured
Municipal Income Fund (Formerly funds of Fidelity New York Municipal
Trust) voted to pay to shareholders of record at the opening of
business on record date, the following distributions derived from
capital gains realized from sales of portfolio securities, and
dividends derived from net investment income:
FIDELITY NEW YORK MUNICIPAL INCOME FUND
PAY DATE 12/29/97 3/9/98
RECORD DATE 12/26/97 3/6/98
DIVIDENDS - -
SHORT-TERM
CAPITAL GAINS - -
LONG-TERM
CAPITAL GAINS $.02 $.035
LONG-TERM
CAPITAL GAIN BREAKDOWN:
28% rate - -
20% rate 100.0% 100.0%
SPARTAN NEW YORK INTERMEDIATE MUNICIPAL INCOME FUND
PAY DATE 1/13/98
RECORD DATE 1/12/98
DIVIDENDS -
SHORT-TERM
CAPITAL GAINS -
LONG-TERM
CAPITAL GAINS $.002
LONG-TERM
CAPITAL GAIN BREAKDOWN:
28% rate -
20% rate 100.0%
FIDELITY NEW YORK INSURED MUNICIPAL INCOME FUND
PAY DATE 3/10/97 12/29/97 1/21/98
RECORD DATE 3/7/97 12/26/97 1/20/98
DIVIDENDS - - -
SHORT-TERM
CAPITAL GAINS - $.03 -
LONG-TERM
CAPITAL GAINS $.01 $.05 $.002
LONG-TERM
CAPITAL GAIN BREAKDOWN:
28% rate 100.0% 13.44% -
20% rate - 86.56% 100.0%
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools... all on your desktop. Call Fidelity at
1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER,
MONEY MARKET FUNDS
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
Dwight D. Churchill, Vice President -
INCOME FUND
Boyce Greer, Vice President -
MONEY MARKET FUNDS
Norman Lind, Vice President -
INCOME FUND
Diane M. McLaughlin, Vice President -
MONEY MARKET FUNDS
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Thomas D. Maher, Assistant
Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant
Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Service Company, Inc.
Boston, MA
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 1-800-544-5555
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AUTOMATED LINE FOR QUICKEST SERVICE
