SUPPLEMENT TO FIDELITY'S NEW JERSEY MUNICIPAL FUNDS JANUARY 25, 1999,
PROSPECTUS
SHAREHOLDER MEETING. On or about December 15, 1999, a meeting of the
shareholders of Spartan New Jersey Municipal Income Fund will be held
to approve various proposals, including approval of an amended
management contract with a management fee structure change.
Shareholders of record on October 18, 1999 are entitled to vote at the
meeting.
For more detailed information concerning the proposals under
consideration, please contact Fidelity at 1-800-544-8888 to request a
free copy of the proxy statement.
The following information replaces similar information found under the
heading "Principal Investment Strategies" in the "Investment Summary"
section on page 3 for New Jersey Municipal Money Market Fund and
Spartan New Jersey Municipal Money Market Fund.
(small solid bullet) Investing normally in municipal money market
securities, including a municipal money market fund managed by an
affiliate of FMR.
The following information replaces the fourth bullet under the
heading "Principal Investment Strategies" in the "Investment Summary"
section for Spartan New Jersey Municipal Income Fund on page 4.
(small solid bullet) Managing the fund to have similar overall
interest rate risk to the Lehman Brothers New Jersey 4 Plus
Year Municipal Bond Index with Port Authority of New York/New
Jersey.
The following information replaces similar information found under the
heading "Principal Investment Strategies" in the "Investment Details"
section on page 11 for New Jersey Municipal Money Market Fund and
Spartan New Jersey Municipal Money Market Fund.
FMR normally invests the fund's assets in municipal money market
securities, including a municipal money market fund managed by an
affiliate of FMR.
The following information replaces the fifth paragraph under the
heading "Principal Investment Strategies" in the "Investment Details"
section for Spartan New Jersey Municipal Income Fund on page 12.
FMR uses the Lehman Brothers New Jersey 4 Plus Year Municipal
Bond Index with Port Authority of New York/New Jersey as a guide in
structuring the fund and selecting its investments. FMR manages the
fund to have similar overall interest rate risk to the index. As of
October 31, 1999 , the dollar-weighted average maturity of the
fund and the index was approximately 11.2 and 15.0
years, respectively.
The following information replaces similar information found under the
heading "Description of Principal Security Types" in the "Investment
Details" section on page 13.
MONEY MARKET SECURITIES are high-quality, short-term securities that
pay a fixed, variable or floating interest rate. Securities are often
specifically structured so that they are eligible investments for a
money market fund. For example, in order to satisfy the maturity
restrictions for a money market fund, some money market securities
have demand or put features which have the effect of shortening the
security's maturity. Municipal money market securities include
variable rate demand notes, commercial paper, municipal notes and
municipal money market funds.
SUPPLEMENT TO
FIDELITY'S NEW JERSEY MUNICIPAL FUNDS
JANUARY 25, 1999
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING REPLACES SIMILAR INFORMATION FOUND UNDER THE HEADING
"INVESTMENT LIMITATIONS OF SPARTAN NEW JERSEY MUNICIPAL MONEY MARKET
FUND" IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2.
(ii) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (5)).
THE FOLLOWING REPLACES SIMILAR INFORMATION FOUND UNDER THE HEADING
"INVESTMENT LIMITATIONS OF FIDELITY NEW JERSEY MUNICIPAL MONEY MARKET
FUND" IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING
ON PAGE 2.
(ii) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (5)).
THE FOLLOWING REPLACES SIMILAR INFORMATION FOUND UNDER THE HEADING
"INVESTMENT LIMITATIONS OF SPARTAN NEW JERSEY MUNICIPAL INCOME FUND"
IN THE "INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE
2.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)).
THE FOLLOWING REPLACES SIMILAR INFORMATION FOUND IN THE "PERFORMANCE"
SECTION BEGINNING ON PAGE 19.
HISTORICAL BOND FUND RESULTS. The following table shows the fund's
yield, tax-equivalent yield and return for the fiscal periods ended
November 30, 1998.
The tax-equivalent yields for Spartan New Jersey Municipal Money
Market, New Jersey Municipal Money Market and Spartan New Jersey
Municipal Income are based on a combined federal and state income tax
rate of 40.08% and reflect that, as of November 30, 1998, 6.95%, 9.36%
and 0.00%, respectively, of the funds' income was subject to state
taxes. Note that each fund may invest in securities whose income is
subject to the federal alternative minimum tax.
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Average Annual Returns
Seven-Day Yield Tax- Equivalent Yield One Year Five Years Life of Fund*
Spartan NJ Muni Money Market 2.84% 4.72% 3.06% 3.15% 3.38%
</TABLE>
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Cumulative Returns
One Year Five Years Life of Fund*
Spartan NJ Muni Money Market 3.06% 16.75% 33.09%
</TABLE>
* From May 1, 1990 (commencement of operations).
Note: If FMR had not reimbursed certain fund expenses during these
periods, the fund's returns would have been lower.
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Average Annual Returns Cumulative Returns
Seven-Day Yield Tax- Equivalent Yield One Year Five Years Ten Years One Year
NJ Muni Money Market 2.72% 4.51% 2.93% 2.88% 3.55% 2.93%
</TABLE>
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Cumulative Returns
Five Years Ten Years
NJ Muni Money Market 15.25% 41.76%
</TABLE>
Note: If FMR had not reimbursed certain fund expenses during these
periods, the fund's returns would have been lower.
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Average Annual Returns
Thirty-Day Yield Tax- Equivalent Yield One Year Five Years Ten Years
Spartan NJ Muni Income 4.02% 6.71% 6.96% 5.74% 7.95%
</TABLE>
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Cumulative Returns
One Year Five Years Ten Years
Spartan NJ Muni Income 6.96% 32.20% 114.83%
</TABLE>
Note: If FMR had not reimbursed certain fund expenses during these
periods, the fund's returns would have been lower.
THE FOLLOWING INFORMATION REPLACES THE FOURTH PARAGRAPH UNDER THE
HEADING "PERFORMANCE COMPARISONS" IN THE "PERFORMANCE" SECTION ON PAGE
23.
Spartan New Jersey Municipal Income Fund may compare its
performance to the Lehman Brothers Municipal Bond Index, a market
value-weighted index of investment-grade municipal bonds with
maturities of one year or more. Spartan New Jersey Municipal Income
may also compare its performance to that of the Lehman Brothers New
Jersey Municipal Bond Index with Port Authority of NY/NJ, a market
value-weighted index of New Jersey investment-grade municipal bonds,
including Port Authority of New York and New Jersey bonds, with
maturities of one year or more. Spartan New Jersey Municipal Income
may also compare its performance to that of the Lehman Brothers
New Jersey 4 Plus Year Municipal Bond Index with Port Authority
of NY/NJ, a market value-weighted index of New Jersey investment-grade
municipal bonds, including Port Authority of New York and New Jersey
bonds, with maturities of four years or more. Issues
included in each index have been issued after December 31, 1990, have
an outstanding par value of at least $3 million, and have been issued
as part of an offering of at least $50 million . Subsequent to
December 31, 1995, zero coupon bonds and issues subject to the
alternative minimum tax are included in each index. Beginning
January 1, 2000, issues included in each index will have an
outstanding par value of at least $5 million.
THE FOLLOWING INFORMATION REPLACES THE "GROUP FEE RATE" AND "EFFECTIVE
ANNUAL FEE RATE" SCHEDULES FOR FIDELITY NEW JERSEY MUNICIPAL MONEY
MARKET FUND FOUND ON PAGE 30.
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GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate
0 - $3 billion .3700% $ 1 billion .3700%
3 - 6 .3400 50 .2188
6 - 9 .3100 100 .1869
9 - 12 .2800 150 .1736
12 - 15 .2500 200 .1652
15 - 18 .2200 250 .1587
18 - 21 .2000 300 .1536
21 - 24 .1900 350 .1494
24 - 30 .1800 400 .1459
30 - 36 .1750 450 .1427
36 - 42 .1700 500 .1399
42 - 48 .1650 550 .1372
48 - 66 .1600 600 .1349
66 - 84 .1550 650 .1328
84 - 120 .1500 700 .1309
120 - 156 .1450 750 .1291
156 - 192 .1400 800 .1275
192 - 228 .1350 850 .1260
228 - 264 .1300 900 .1246
264 - 300 .1275 950 .1233
300 - 336 .1250 1,000 .1220
336 - 372 .1225 1,050 .1209
372 - 408 .1200 1,100 .1197
408 - 444 .1175 1,150 .1187
444 - 480 .1150 1,200 .1177
480 - 516 .1125 1,250 .1167
516 - 587 .1100 1,300 .1158
587 - 646 .1080 1,350 .1149
646 - 711 .1060 1,400 .1141
711 - 782 .1040
782 - 860 .1020
860 - 946 .1000
946 - 1,041 .0980
1,041 - 1,145 .0960
1,145 - 1,260 .0940
over - 1,260 .0920
</TABLE>
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"TRANSFER AND SERVICE AGENT AGREEMENTS" SECTION BEGINNING ON PAGE 33.
TRANSFER AND SERVICE AGENT AGREEMENTS
Each fund has entered into a transfer agent agreement with Citibank,
N.A., which is located at 111 Wall Street, New York, New York. Under
the terms of the agreements, Citibank, N.A. provides transfer agency,
dividend disbursing, and shareholder services for each fund. Citibank,
N.A. in turn has entered into sub-transfer agent agreements with FSC,
an affiliate of FMR. Under the terms of the sub-agreements, FSC
performs all processing activities associated with providing these
services for each fund and receives all related transfer agency fees
paid to Citibank, N.A.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
EIGHTH PARAGRAPH IN THE "TRANSFER AND SERVICE AGENT AGREEMENTS"
SECTION ON PAGE 33.
In addition, Citibank, N.A. receives the pro rata portion of the
transfer agency fees applicable to shareholder accounts in a qualified
state tuition program (QSTP), as defined under the Small Business Job
Protection Act of 1996, managed by FMR or an affiliate and each
Fidelity Freedom Fund, a fund of funds managed by an FMR affiliate,
according to the percentage of the QSTP's or Freedom Fund's assets
that is invested in a fund.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
TENTH PARAGRAPH IN THE "TRANSFER AND SERVICE AGENT AGREEMENTS" SECTION
ON PAGE 34.
Each fund has also entered into a service agent agreement with
Citibank, N.A. Under the terms of the agreements, Citibank, N.A.
provides pricing and bookkeeping services for each fund. Citibank,
N.A. in turn has entered into sub-service agent agreements with FSC.
Under the terms of the sub-agreements, FSC performs all processing
activities associated with providing these services, including
calculating the NAV and dividends for each fund and maintaining each
fund's portfolio and general accounting records, and receives all
related pricing and bookkeeping fees paid to Citibank, N.A.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DESCRIPTION OF THE TRUSTS" SECTION BEGINNING ON PAGE 34.
CUSTODIAN. Citibank, N.A., 111 Wall Street, New York, New York, is
custodian of the assets of the funds. The custodian is responsible for
the safekeeping of a fund's assets and the appointment of any
subcustodian banks and clearing agencies.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 25.
*EDWARD C. JOHNSON 3d (68), Trustee and President, is Chairman, Chief
Executive Officer and a Director of FMR Corp.; a Director and Chairman
of the Board and of the Executive Committee of FMR; Chairman and a
Director of Fidelity Investments Money Management, Inc. (1998),
Fidelity Management & Research (U.K.) Inc., and Fidelity Management &
Research (Far East) Inc. Abigail Johnson, Member of the Advisory Board
of Fidelity Court Street Trust and Fidelity Court Street Trust II, is
Mr. Johnson's daughter.
THE FOLLOWING INFORMATION FOUND IN THE "TRUSTEES AND OFFICERS" SECTION
BEGINNING ON PAGE 25 HAS BEEN REMOVED.
LEONARD M. RUSH (52), Assistant Treasurer (1994), is an employee of
FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity
funds, Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994)
and Chief Financial Officer of Fidelity Brokerage Services, Inc.
(1990-1993).
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 25.
NED C. LAUTENBACH (55), Member of the Advisory Board (1999), has been
a partner of Clayton, Dubilier & Rice, Inc. (private equity investment
firm) since September 1998. Mr. Lautenbach was Senior Vice President
of IBM Corporation from 1992 until his retirement in July 1998. From
1993 to 1995 he was Chairman of IBM World Trade Corporation. He also
was a member of IBM's Corporate Executive Committee from 1994 to July
1998. He is a Director of PPG Industries Inc. (glass, coating and
chemical manufacturer), Dynatech Corporation (global communications
equipment), Eaton Corporation (global manufacturer of highly
engineered products) and ChoicePoint Inc. (data identification,
retrieval, storage, and analysis).
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COMPENSATION TABLE
Trustees and Members of the Aggregate Compensation from Aggregate Compensation from Aggregate Compensation from
Advisory Board Spartan NJ Muni Money MarketB Fidelity NJ Muni Money MarketB Spartan NJ Muni IncomeB
Edward C. Johnson 3d** $ 0 $ 0 $ 0
Abigail P. Johnson** $ 0 $ 0 $ 0
J. Gary Burkhead** $ 0 $ 0 $ 0
Ralph F. Cox $ 188 $ 191 $ 134
Phyllis Burke Davis $ 187 $ 190 $ 133
Robert M. Gates $ 189 $ 193 $ 135
E. Bradley Jones $ 188 $ 191 $ 134
Donald J. Kirk $ 191 $ 195 $ 137
Ned C. Lautenbach*** $ 0 $ 0 $ 0
Peter S. Lynch** $ 0 $ 0 $ 0
William O. McCoy $ 189 $ 193 $ 135
Gerald C. McDonough $ 233 $ 237 $ 166
Marvin L. Mann $ 186 $ 190 $ 133
Robert C. Pozen** $ 0 $ 0 $ 0
Thomas R. Williams $ 189 $ 193 $ 135
</TABLE>
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COMPENSATION TABLE
Trustees and Members of the Total Compensation from the
Advisory Board Fund Complex*,A
Edward C. Johnson 3d** $ 0
Abigail P. Johnson** $ 0
J. Gary Burkhead** $ 0
Ralph F. Cox $ 223,500
Phyllis Burke Davis $ 220,500
Robert M. Gates $ 223,500
E. Bradley Jones $ 222,000
Donald J. Kirk $ 226,500
Ned C. Lautenbach*** $ 0
Peter S. Lynch** $ 0
William O. McCoy $ 223,500
Gerald C. McDonough $ 273,500
Marvin L. Mann $ 220,500
Robert C. Pozen** $ 0
Thomas R. Williams $ 223,500
</TABLE>
* Information is for the calendar year ended December 31, 1998 for 237
funds in the complex.
** Interested Trustees of the funds, Ms. Johnson and Mr. Burkhead are
compensated by FMR.
*** Effective October 14, Mr. Lautenbach serves as a Member of the
Advisory Board.
A Compensation figures include cash, amounts required to be deferred,
and may include amounts deferred at the election of Trustees. For the
calendar year ended December 31, 1998, the Trustees accrued required
deferred compensation from the funds as follows: Ralph F. Cox,
$75,000; Phyllis Burke Davis, $75,000; Robert M. Gates, $75,000; E.
Bradley Jones, $75,000; Donald J. Kirk, $75,000; William O. McCoy,
$75,000; Gerald C. McDonough, $87,500; Marvin L. Mann, $75,000; and
Thomas R. Williams, $75,000. Certain of the non-interested Trustees
elected voluntarily to defer a portion of their compensation as
follows: Ralph F. Cox, $55,039; William O. McCoy, $55,039; Marvin L.
Mann, $55,039 and Thomas R. Williams, $63,433.
B Compensation figures include cash.
THE FOLLOWING INFORMATION SUPPLEMENTS THE INFORMATION FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 25.
ABIGAIL P. JOHNSON (37), Member of the Advisory Board of Fidelity
Court Street Trust and Fidelity Court Street Trust II (1999), is Vice
President of certain Equity Funds (1997), and is a Director of FMR
Corp. (1994). Before assuming her current responsibilities, Ms.
Johnson managed a number of Fidelity funds. Edward C. Johnson 3d,
Trustee and President of Funds, is Ms. Johnson's father.
