To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR Corp. or an affiliated company.
Annual Report
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent quarterly holdings report, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com/holdings.
NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE
Neither the funds nor Fidelity Distributors Corporation is a bank.
Annual Report
Chairman's Message
(photo_of_Edward_C_Johnson_3d)
Dear Shareholder:
Substantial single-day losses are not uncommon in the equity markets, and when they occur - as in late February - investors can be better served in the long term by buying good stocks at lower prices than by moving their money to the sidelines. While financial markets are always unpredictable, there are a number of time-tested principles that can put the historical odds in your favor.
One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There are tax advantages and cost benefits to consider as well. The more you sell, the more taxes you pay, and the more you trade, the higher the costs. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.
You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).
A third investment principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces unconstructive "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.
We invite you to contact us via the Internet, through our Investor Centers or over the phone. It is our privilege to provide you the information you need to make the investments that are right for you.
Sincerely,
/s/Edward C. Johnson 3d
Edward C. Johnson 3d
Annual Report
Shareholder Expense Example
As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Funds and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (September 1, 2006 to February 28, 2007).
Actual Expenses
The first line of the accompanying table for each fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table for each fund provides information about hypothetical account values and hypothetical expenses based on a fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
Annual Report
Investments - continued
Beginning Account Value September 1, 2006
Ending Account Value February 28, 2007
Expenses Paid During Period* September 1, 2006 to February 28, 2007
Fidelity California AMT Tax-Free Money Market Fund
Actual
$ 1,000.00
$ 1,016.20
$ 1.75**
Hypothetical A
$ 1,000.00
$ 1,023.06
$ 1.76**
Fidelity California Municipal Money Market Fund
Actual
$ 1,000.00
$ 1,015.50
$ 2.60
Hypothetical A
$ 1,000.00
$ 1,022.22
$ 2.61
A 5% return per year before expenses
* Expenses are equal to each Fund's annualized expense ratio (shown in the table below); multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).
** If fees effective April 1, 2007 had been in effect during the entire period, the annualized expense ratio would have been .30% and the expenses paid in the actual and hypothetical examples above would have been $1.50 and $1.51, respectively.
Annualized Expense Ratio
Fidelity California AMT Tax-Free Money Market Fund
.35%
Fidelity California Municipal Money Market Fund
.52%
Annual Report
Fidelity California AMT Tax-Free Money Market Fund
Investment Changes/Performance
Maturity Diversification
Days
% of fund's investments 2/28/07
% of fund's investments 8/31/06
% of fund's investments 2/28/06
0 - 30
88.8
95.5
88.2
31 - 90
4.7
0.9
5.5
91 - 180
5.4
0.2
5.4
181 - 397
1.1
3.4
0.9
Weighted Average Maturity
2/28/07
8/31/06
2/28/06
Fidelity California AMT Tax-Free Money Market Fund
18 Days
17 Days
18 Days
California Tax Free Money Market Funds Average*
19 Days
26 Days
22 Days
Asset Allocation (% of fund's net assets)
As of February 28, 2007
As of August 31, 2006
Variable Rate Demand Notes (VRDNs) 81.6%
Variable Rate Demand Notes (VRDNs) 87.9%
Commercial Paper (including CP Mode) 11.1%
Commercial Paper (including CP Mode) 6.8%
Tender Bonds 0.9%
Tender Bonds 0.6%
Municipal Notes 5.4%
Municipal Notes 3.9%
Other Investments 0.6%
Other Investments 0.2%
Net Other Assets 0.4%
Net Other Assets 0.6%
Current and Historical Seven-Day Yields
2/26/07
11/27/06
8/28/06
5/29/06
2/27/06
Fidelity California AMT Tax-Free Money Market Fund
3.29%
3.26%
3.25%
3.19%
2.81%
If Fidelity had not reimbursed certain fund expenses
3.17%
3.18%
3.17%
3.11%
2.69%
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it is possible to lose money by investing in the fund.
*Source: iMoneyNet, Inc.
Annual Report
Fidelity California AMT Tax-Free Money Market Fund
Los Angeles County Metropolitan Trans. Auth. Sales Tax Rev.: - continued
Series A, 3.4% 3/8/07, LOC BNP Paribas SA, LOC Dexia Cr. Local de France, CP
$ 21,349
$ 21,349
Los Angeles County Pub. Works Fing. Auth. Lease Rev. Participating VRDN Series Merlots 00 JJJ, 3.54% (Liquidity Facility Wachovia Bank NA) (a)(c)
13,830
13,830
Los Angeles County Sanitation District Fin. Auth. Rev. Participating VRDN Series Solar 06 55, 3.64% (Liquidity Facility U.S. Bank NA, Minnesota) (a)(c)
10,690
10,690
Los Angeles Dept. of Wtr. & Pwr. Rev. Participating VRDN:
Series EGL 7053026 Class A, 3.66% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(c)
18,000
18,000
Series PA 1192, 3.68% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(c)
Series ROC II R 785 CE, 3.67% (Liquidity Facility Citigroup, Inc.) (a)(c)
71,700
71,699
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Participating VRDN:
Series Floaters 682, 3.64% (Liquidity Facility Morgan Stanley) (a)(c)
3,580
3,580
Series MS 1276, 3.64% (Liquidity Facility Morgan Stanley) (a)(c)
15,720
15,720
Series MSDW 00 482, 3.64% (Liquidity Facility Morgan Stanley) (a)(c)
7,170
7,170
Series Putters 268, 3.65% (Liquidity Facility JPMorgan Chase Bank) (a)(c)
1,100
1,100
Series SGA 43, 3.51% (Liquidity Facility Societe Generale) (a)(c)
9,700
9,700
Municipal Securities - continued
Principal Amount (000s)
Value (000s)
Puerto Rico - continued
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Participating VRDN: - continued
Series SGA 44, 3.51% (Liquidity Facility Societe Generale) (a)(c)
$ 9,400
$ 9,400
Puerto Rico Infrastructure Fing. Auth. Bonds Series AAB 00 17, 3.66%, tender 3/7/07 (Liquidity Facility ABN-AMRO Bank NV) (a)(c)
11,000
11,000
237,009
TOTAL INVESTMENT PORTFOLIO - 99.6%
(Cost $3,199,038)
3,199,038
NET OTHER ASSETS - 0.4%
12,677
NET ASSETS - 100%
$ 3,211,715
Security Type Abbreviations
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
TRAN - TAX AND REVENUE ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
Legend
(a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.
(b) Security collateralized by an amount sufficient to pay interest and principal.
(c) Provides evidence of ownership in one or more underlying municipal bonds.
(d) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $5,735,000 or 0.2% of net assets.
Additional information on each holding is as follows:
Security
Acquisition Date
Cost (000s)
Golden West Schools Fing. Auth. Bonds Series PT 2985, 3.55%, tender 10/11/07 (Liquidity Facility Dexia Cr. Local de France)
10/10/06
$ 5,735
Affiliated Central Funds
Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:
Fund
Income earned (Amounts in thousands)
Fidelity Tax-Free Cash Central Fund
$ 7
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Fidelity California AMT Tax-Free Money Market Fund
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount)
February 28, 2007
Assets
Investment in securities, at value - See accompanying schedule:
Unaffiliated issuers (cost $3,199,038)
$ 3,199,038
Cash
20,341
Receivable for investments sold
67,708
Receivable for fund shares sold
7,171
Interest receivable
26,789
Receivable from investment adviser for expense reductions
287
Other receivables
417
Total assets
3,321,751
Liabilities
Payable for investments purchased
$ 98,430
Payable for fund shares redeemed
9,800
Distributions payable
663
Accrued management fee
1,140
Other affiliated payables
3
Total liabilities
110,036
Net Assets
$ 3,211,715
Net Assets consist of:
Paid in capital
$ 3,211,134
Undistributed net investment income
95
Accumulated undistributed net realized gain (loss) on investments
486
Net Assets, for 3,210,774 shares outstanding
$ 3,211,715
Net Asset Value, offering price and redemption price per share ($3,211,715 ÷ 3,210,774 shares)
$ 1.00
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity California AMT Tax-Free Money Market Fund Financial Statements - continued
Statement of Operations
Amounts in thousands
Year ended February 28, 2007
Investment Income
Interest
$ 95,634
Income from Fidelity Central Funds
7
Total income
95,641
Expenses
Management fee
$ 11,920
Independent trustees' compensation
9
Total expenses before reductions
11,929
Expense reductions
(4,585)
7,344
Net investment income
88,297
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers
826
Net increase in net assets resulting from operations
$ 89,123
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands
Year ended February 28, 2007
Year ended February 28, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income
$ 88,297
$ 42,608
Net realized gain (loss)
826
64
Net increase in net assets resulting from operations
89,123
42,672
Distributions to shareholders from net investment income
(88,327)
(42,654)
Distributions to shareholders from net realized gain
(299)
-
Total distributions
(88,626)
(42,654)
Share transactions at net asset value of $1.00 per share Proceeds from sales of shares
3,173,527
2,164,617
Reinvestment of distributions
80,233
38,823
Cost of shares redeemed
(2,248,089)
(1,493,188)
Net increase (decrease) in net assets and shares resulting from share transactions
1,005,671
710,252
Total increase (decrease) in net assets
1,006,168
710,270
Net Assets
Beginning of period
2,205,547
1,495,277
End of period (including undistributed net investment income of $95 and distributions in excess of net investment income of $3, respectively)
$ 3,211,715
$ 2,205,547
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended February 28,
2007
2006
2005
2004 D
2003
Selected Per-Share Data
Net asset value, beginning of period
$ 1.00
$ 1.00
$ 1.00
$ 1.00
$ 1.00
Income from Investment Operations
Net investment income
.032
.023
.010
.007
.011
Net realized and unrealized gain (loss) E
-
-
-
-
-
Total from investment operations
.032
.023
.010
.007
.011
Distributions from net investment income
(.032)
(.023)
(.010)
(.007)
(.011)
Distributions from net realized gain
- E
-
-
- E
-
Total distributions
(.032)
(.023)
(.010)
(.007)
(.011)
Net asset value, end of period
$ 1.00
$ 1.00
$ 1.00
$ 1.00
$ 1.00
Total Return A
3.24%
2.34%
1.04%
.75%
1.15%
Ratios to Average Net Assets B, C
Expenses before reductions
.43%
.43%
.43%
.43%
.43%
Expenses net of fee waivers, if any
.35%
.35%
.35%
.35%
.35%
Expenses net of all reductions
.27%
.27%
.31%
.34%
.32%
Net investment income
3.19%
2.34%
1.05%
.73%
1.14%
Supplemental Data
Net assets, end of period (in millions)
$ 3,212
$ 2,206
$ 1,495
$ 1,240
$ 1,327
ATotal returns would have been lower had certain expenses not been reduced during the periods shown.
BFees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.
CExpense ratios reflect operating expenses of theFund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
DFor the year ended February 29.
EAmount represents less than $.001 per share.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity California Municipal Money Market Fund
Investment Changes/Performance
Maturity Diversification
Days
% of fund's investments 2/28/07
% of fund's investments 8/31/06
% of fund's investments 2/28/06
0 - 30
94.8
97.4
93.5
31 - 90
1.0
0.3
3.4
91 - 180
3.5
0.3
3.1
181 - 397
0.7
2.0
0.0
Weighted Average Maturity
2/28/07
8/31/06
2/28/06
Fidelity California Municipal Money Market
13 Days
13 Days
12 Days
California Tax Free Money Market Funds Average*
19 Days
26 Days
22 Days
Asset Allocation (% of fund's net assets)
As of February 28, 2007
As of August 31, 2006
Variable Rate Demand Notes (VRDNs) 89.5%
Variable Rate Demand Notes (VRDNs) 88.2%
Commercial Paper (including CP Mode) 3.2%
Commercial Paper (including CP Mode) 4.8%
Tender Bonds 0.0%
Tender Bonds 0.9%
Municipal Notes 3.5%
Municipal Notes 2.5%
Other Investments 0.4%
Other Investments 0.2%
Net Other Assets 3.4%
Net Other Assets 3.4%
Current and Historical Seven-Day Yields
2/26/07
11/27/06
8/28/06
5/29/06
2/27/06
Fidelity California Municipal Money Market Fund
3.13%
3.12%
3.15%
2.94%
2.67%
Yield refers to the income paid by the fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it is possible to lose money by investing in the fund.
Santa Ana Hsg. Auth. 3.69%, LOC Fannie Mae, VRDN (a)(b)
8,140
8,140
Santa Clara County Hsg. Auth. Multi-family Hsg. Rev. (Timberwood Apts. Proj.) Series B, 3.81%, LOC Union Bank of California, VRDN (a)(b)
12,445
12,445
Santa Clara Valley Wtr. District Ctfs. of Prtn. Participating VRDN Series Merlots 00 MM, 3.54% (Liquidity Facility Wachovia Bank NA) (a)(c)
14,530
14,530
Santa Clara Valley Wtr. District Wtr. Util. Rev. Series A, 3.52% 3/20/07, LOC WestLB AG, CP
8,200
8,200
Santa Cruz Redev. Agcy. Multi-family Rev.:
(1010 Pacific Ave. Apts. Proj.) Series B, 3.66%, LOC Fannie Mae, VRDN (a)(b)
21,650
21,650
Municipal Securities - continued
Principal Amount (000s)
Value (000s)
California - continued
Santa Cruz Redev. Agcy. Multi-family Rev.: - continued
(Shaffer Road Apts. Proj.) Series A, 3.66%, LOC Fannie Mae, VRDN (a)(b)
$ 19,925
$ 19,925
Santa Rosa Multi-family Hsg. Rev. (Quail Run Apts./Santa Rosa Hsg. Partners Proj.) Series 1997 A, 3.7%, LOC U.S. Bank NA, Minnesota, VRDN (a)(b)
1,850
1,850
Sequoia Union High School District Bonds Series AAB 03 2, 3.66%, tender 3/7/07 (Liquidity Facility ABN-AMRO Bank NV) (a)(c)
12,100
12,100
Simi Valley Multi-family Hsg. Rev. (Parker Ranch Proj.) Series A, 3.66%, LOC Fannie Mae, VRDN (a)(b)
17,500
17,500
Sonoma County Jr. College District Rev. Participating VRDN Series MA 06 1466, 3.64% (Liquidity Facility Morgan Stanley) (a)(c)
3,505
3,505
South Orange County Pub. Fing. Auth. Spl. Tax Rev. Participating VRDN Series Putters 470, 3.65% (Liquidity Facility JPMorgan Chase Bank) (a)(c)
5,200
5,200
Southern California Home Fing. Auth. Single Family Rev. Participating VRDN Series MT 90, 3.71% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(b)(c)
99,530
99,530
Sunnyvale School District Participating VRDN Series PT 2710, 3.65% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(c)
2,000
2,000
Sweetwater Union High School District Participating VRDN Series MS 1456, 3.64% (Liquidity Facility Morgan Stanley) (a)(c)
9,455
9,455
Univ. of California Revs. Participating VRDN:
Series EGL 7050006 Class A, 3.66% (Liquidity Facility Citibank NA) (a)(c)
4,890
4,890
Series EGL 7050084 Class A, 3.66% (Liquidity Facility Citibank NA) (a)(c)
16,500
16,500
Series Merlots 97 G, 3.54% (Liquidity Facility Wachovia Bank NA) (a)(c)
13,430
13,430
Series PA 529, 3.65% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(c)
3,100
3,100
Series PT 872, 3.64% (Liquidity Facility Landesbank Hessen-Thuringen) (a)(c)
8,265
8,265
Series Putters 1201, 3.65% (Liquidity Facility JPMorgan Chase Bank) (a)(c)
5,215
5,215
Walnut Energy Ctr. Auth. Rev. Participating VRDN Series Putters 583, 3.65% (Liquidity Facility JPMorgan Chase & Co.) (a)(c)
5,170
5,170
Municipal Securities - continued
Principal Amount (000s)
Value (000s)
California - continued
William S. Hart Union High School District Participating VRDN Series SG 171, 3.67% (Liquidity Facility Societe Generale) (a)(c)
$ 8,600
$ 8,600
Yucaipa Valley Wtr. District Wtr. Sys. Rev. Participating VRDN Series ROC II R 2130, 3.65% (Liquidity Facility Citigroup, Inc.) (a)(c)
Series MACN 06 H, 3.65% (Liquidity Facility Bank of America NA) (a)(c)
4,500
4,500
Series MACN 06 R, 3.65% (Liquidity Facility Bank of America NA) (a)(c)
7,500
7,500
Series ROC II R 785 CE, 3.67% (Liquidity Facility Citigroup, Inc.) (a)(c)
90,000
90,000
Puerto Rico Commonwealth Infrastructure Fing. Auth. Participating VRDN Series MS 06 1534, 3.66% (Liquidity Facility Morgan Stanley) (a)(c)
3,475
3,475
Puerto Rico Elec. Pwr. Auth. Pwr. Rev. Participating VRDN Series PA 778R, 3.64% (Liquidity Facility Merrill Lynch & Co., Inc.) (a)(c)
3,850
3,850
Univ. of Puerto Rico Rev. Participating VRDN Series LB 06 FC4, 3.56% (Lehman Brothers Hldgs., Inc. Guaranteed) (Liquidity Facility Lehman Brothers Hldgs., Inc.) (a)(c)
15,600
15,600
203,697
TOTAL INVESTMENT PORTFOLIO - 96.6%
(Cost $4,600,312)
4,600,312
NET OTHER ASSETS - 3.4%
161,659
NET ASSETS - 100%
$ 4,761,971
Security Type Abbreviations
CP - COMMERCIAL PAPER
TRAN - TAX AND REVENUE ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
Legend
(a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal bonds.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Statements
Fidelity California Municipal Money Market Fund
Statement of Assets and Liabilities
Amounts in thousands (except per-share amount)
February 28, 2007
Assets
Investment in securities, at value - See accompanying schedule:
Unaffiliated issuers (cost $4,600,312)
$ 4,600,312
Cash
138,870
Receivable for investments sold
23,015
Receivable for fund shares sold
99,996
Interest receivable
30,851
Prepaid expenses
17
Other receivables
928
Total assets
4,893,989
Liabilities
Payable for investments purchased
$ 45,243
Payable for fund shares redeemed
84,059
Distributions payable
113
Accrued management fee
1,445
Other affiliated payables
1,092
Other payables and accrued expenses
66
Total liabilities
132,018
Net Assets
$ 4,761,971
Net Assets consist of:
Paid in capital
$ 4,760,901
Undistributed net investment income
142
Accumulated undistributed net realized gain (loss) on investments
928
Net Assets, for 4,760,047 shares outstanding
$ 4,761,971
Net Asset Value, offering price and redemption price per share ($4,761,971 ÷ 4,760,047 shares)
$ 1.00
See accompanying notes which are an integral part of the financial statements.
Annual Report
Fidelity California Municipal Money Market Fund Financial Statements - continued
Statement of Operations
Amounts in thousands
Year ended February 28, 2007
Investment Income
Interest
$ 148,917
Expenses
Management fee
$ 16,053
Transfer agent fees
5,732
Accounting fees and expenses
366
Custodian fees and expenses
68
Independent trustees' compensation
15
Registration fees
84
Audit
57
Legal
14
Miscellaneous
72
Total expenses before reductions
22,461
Expense reductions
(5,859)
16,602
Net investment income
132,315
Realized and Unrealized Gain (Loss)
Net realized gain (loss) on:
Investment securities:
Unaffiliated issuers
1,018
Net increase in net assets resulting from operations
$ 133,333
See accompanying notes which are an integral part of the financial statements.
Annual Report
Statement of Changes in Net Assets
Amounts in thousands
Year ended February 28, 2007
Year ended February 28, 2006
Increase (Decrease) in Net Assets
Operations
Net investment income
$ 132,315
$ 81,280
Net realized gain (loss)
1,018
47
Net increase in net assets resulting from operations
133,333
81,327
Distributions to shareholders from net investment income
(132,257)
(81,250)
Share transactions at net asset value of $1.00 per share Proceeds from sales of shares
19,929,849
15,764,573
Reinvestment of distributions
130,416
80,226
Cost of shares redeemed
(19,395,177)
(15,222,801)
Net increase (decrease) in net assets and shares resulting from share transactions
665,088
621,998
Total increase (decrease) in net assets
666,164
622,075
Net Assets
Beginning of period
4,095,807
3,473,732
End of period (including undistributed net investment income of $142 and undistributed net investment income of $84, respectively)
$ 4,761,971
$ 4,095,807
See accompanying notes which are an integral part of the financial statements.
Annual Report
Financial Highlights
Years ended February 28,
2007
2006
2005
2004 C
2003
Selected Per-Share Data
Net asset value, beginning of period
$ 1.00
$ 1.00
$ 1.00
$ 1.00
$ 1.00
Income from Investment Operations
Net investment income
.030
.022
.009
.006
.010
Distributions from net investment income
(.030)
(.022)
(.009)
(.006)
(.010)
Net asset value, end of period
$ 1.00
$ 1.00
$ 1.00
$ 1.00
$ 1.00
Total Return A
3.09%
2.19%
.87%
.57%
.99%
Ratios to Average Net Assets B
Expenses before reductions
.52%
.52%
.53%
.52%
.52%
Expenses net of fee waivers, if any
.52%
.52%
.53%
.52%
.52%
Expenses net of all reductions
.38%
.41%
.50%
.50%
.49%
Net investment income
3.05%
2.18%
.88%
.56%
.98%
Supplemental Data
Net assets, end of period (in millions)
$ 4,762
$ 4,096
$ 3,474
$ 2,899
$ 2,626
A Total returns would have been lower had certain expenses not been reduced during the periods shown.
B Expense ratios reflect operating expenses of theFund. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or other expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
C For the year ended February 29.
See accompanying notes which are an integral part of the financial statements.
Annual Report
Notes to Financial Statements
For the period ended February 28, 2007
(Amounts in thousands except ratios)
1. Organization.
Fidelity California AMT Tax-Free Money Market Fund and Fidelity California Municipal Money Market Fund (the Funds) are funds of Fidelity California Municipal Trust II (the trust). The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware statutory trust. On January 18, 2007, the Board of Trustees of Fidelity California AMT Tax-Free Money Market Fund approved the creation of additional classes of shares. The Fund is expected to commence sale of shares of Institutional Class and Service Class and the existing class will be designated California AMT Tax-Free Money Market on or about April 25, 2007. Each Fund is authorized to issue an unlimited number of shares. Each Fund may be affected by economic and political developments in the state of California. The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements.
2. Investments in Fidelity Central Funds.
The Funds may invest in Fidelity Central Funds which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Funds' Schedule of Investments lists each of the Fidelity Central Funds as an investment of each Fund but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Funds indirectly bear their proportionate share of the expenses of the underlying Fidelity Central Funds. A complete unaudited list of holdings for each Fidelity Central Fund is available upon request. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Funds' Report of Independent Registered Public Accounting Firm, are available on the EDGAR Database on the SEC's web site, www.sec.gov, or upon request.
The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM) an affiliate of FMR.
3. Significant Accounting Policies.
The following summarizes the significant accounting policies of the Funds:
Security Valuation. Net asset value per share is calculated as of the close of business of the New York Stock Exchange, normally 4:00 p.m. Eastern time. As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates value. Investments in open-end mutual funds, including the Fidelity Central Funds, are valued at their closing net asset value each business day.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
Investment Transactions and Income. Security transactions including the Funds' investment activity in the Fidelity Central Funds, are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses. Most expenses of each trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned among each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, each Fund intends to qualify as a regulated investment company by distributing all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code. As a result, no provision for income taxes is required in the accompanying financial statements.
Dividends are declared daily and paid monthly from net investment income. Distributions from realized gains, 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. In addition, Certain Funds will claim a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation and losses deferred due to wash sales and excise tax regulations.
The Funds purchase municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that the Internal Revenue Service (IRS) will agree with this opinion. In the event the IRS determines that the issuer does not comply with relevant tax requirements, interest payments from a security could become federally taxable, possibly retroactively to the date the security was issued.
Annual Report
3. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-basis components of distributable earnings and the federal tax cost as of period end were as follows for each Fund:
Cost for Federal Income Tax Purposes
Unrealized Appreciation
Unrealized Depreciation
Net Unrealized Appreciation/ (Depreciation)
Fidelity California AMT Tax-Free Money Market Fund
$ 3,199,038
$ -
$ -
$ -
Fidelity California Municipal Money Market Fund
4,600,312
-
-
-
Undistributed Ordinary Income
Undistributed Long-term Capital Gain
Capital Loss Carryforward
Fidelity California AMT Tax-Free Money Market Fund
$ 98
$ 357
$ -
Fidelity California Municipal Money Market Fund
145
230
-
The tax character of distributions paid was as follows:
February 28, 2007
Tax-exempt Income
Ordinary Income
Long-term Capital Gains
Total
Fidelity California AMT Tax-Free Money Market Fund
$ 88,327
$ -
$ 299
$ 88,626
Fidelity California Municipal Money Market Fund
132,257
-
-
132,257
February 28, 2006
Tax-exempt Income
Ordinary Income
Long-term Capital Gains
Total
Fidelity California AMT Tax-Free Money Market Fund
$ 42,654
$ -
$ -
$ 42,654
Fidelity California Municipal Money Market Fund
81,250
-
-
81,250
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
3. Significant Accounting Policies - continued
New Accounting Pronouncements. In July 2006, Financial Accounting Standards Board Interpretation No. 48, Accounting for Uncertainty in Income Taxes - an interpretation of FASB Statement 109 (FIN 48), was issued and is effective on the last business day of the semiannual reporting period for fiscal years beginning after December 15, 2006. FIN 48 sets forth a threshold for financial statement recognition, measurement and disclosure of a tax position taken or expected to be taken on a tax return. Management is currently evaluating the impact, if any, the adoption of FIN 48 will have on the Funds' net assets, results of operations and financial statement disclosures.
In addition, in September 2006, Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157), was issued and is effective for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value, establishes a framework for measuring fair value and expands disclosures about fair value measurements. Management is currently evaluating the impact the adoption of SFAS 157 will have on the Funds' financial statement disclosures.
4. Operating Policies.
Restricted Securities. Certain Funds may 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 at the end of each applicable Fund's Schedule of Investments.
5. Fees and Other Transactions with Affiliates.
Management Fee and Expense Contract. FMR and its affiliates provide Fidelity California Municipal Money Market Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .25% of the Fund's average net assets and a group fee rate that averaged .12% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. For the period, the total annual management fee rate was .37% of the Fund's average net assets.
FMR and its affiliates provide Fidelity California AMT Tax-Free Money Market Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .43% of the Fund's average net assets. FMR pays all other expenses, except the compensation of the independent Trustees and
Annual Report
5. Fees and Other Transactions with Affiliates - continued
Management Fee and Expense Contract - continued
certain exceptions such as interest expense, including commitment fees. The management fee paid to FMR by the Fund is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
On March 15, 2007, the Board of Trustees approved an amendment to the Fidelity California AMT Tax-Free Money Market Fund's management contract lowering the management fee from .43% to .20% of average net assets. Under the amended management contract, effective April 1, 2007, FMR will pay all other fund-level expenses except the compensation of the independent Trustees and certain other expenses such as interest expense, including commitment fees.
In addition, on March 15, 2007, the Board of Trustees of Fidelity California AMT Tax-Free Money Market Fund approved a new expense contract with FMR for the existing class, effective April 1, 2007. Under the expense contract, FMR will pay class-level expenses so that the total expenses do not exceed .35% of the class' average net assets with certain exceptions such as interest expense, including commitment fees.
Transfer Agent and Accounting Fees. Citibank, N.A. (Citibank) is the custodian, transfer agent and shareholder servicing agent for the Funds. Citibank has entered into a sub-arrangement 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. Under the terms of the management fee contract, FMR pays transfer agent fees on behalf of the Fidelity California AMT Tax-Free Money Market Fund. The Fidelity California Municipal Money Market Fund pays account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. The accounting fee is based on the level of average net assets for the month. For the period, the Fidelity California Municipal Money Market Fund's transfer agent fees were equivalent to the following annual rates expressed as a percentage of average net assets:
Fidelity California Municipal Money Market Fund
.13%
On March 15, 2007, the Board of Trustees of Fidelity California AMT Tax-Free Money Market Fund approved a new transfer agent contract with Citibank and new sub-arrangement with FSC. Effective April 1, 2007 the existing class will pay a transfer agent fee of .10% of average net assets, FSC will pay for typesetting, printing and mailing of shareholder reports, except proxy statements.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except ratios)
6. Expense Reductions.
FMR voluntarily agreed to reimburse funds to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, are excluded from this reimbursement.
The following funds were in reimbursement during the period:
Expense Limitations
Reimbursement from adviser
Fidelity California AMT Tax-Free Money Market Fund
.35%
$ 2,234
Through an arrangement with Fidelity California AMT Tax-Free Money Market Fund's custodian and transfer agent, $2,351 of credits realized as a result of uninvested cash balances were used to reduce the fund's management fee.
In addition, through arrangements with each applicable Fund's transfer agent, credits realized as a result of uninvested cash balances were used to reduce each applicable Fund's expenses. All of the applicable expense reductions are noted in the table below.
Custody expense reduction
Transfer Agent expense reduction
Accounting expense reduction
Fidelity California Municipal Money Market Fund
$ 68
$ 5,588
$ 203
7. Other.
The Funds' organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Funds. In the normal course of business, the Funds may also enter into contracts that provide general indemnifications. The Funds' maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Funds. The risk of material loss from such claims is considered remote.
Annual Report
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity California Municipal Trust II and the Shareholders of Fidelity California AMT Tax-Free Money Market Fund and Fidelity California Municipal Money Market Fund:
In our opinion, the accompanying statements of assets and liabilities, including the schedules of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Fidelity California AMT Tax-Free Money Market Fund and Fidelity California Municipal Money Market Fund (funds of California Municipal Trust II) at February 28, 2007, the results of each of their operations for the year then ended, the changes in each of their net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity California 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at February 28, 2007 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
/s/ PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts April 16, 2007
Annual Report
Trustees and Officers
The Trustees, Member of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. Each of the Trustees oversees 349 funds advised by FMR or an affiliate.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Interested Trustees*:
Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation
Edward C. Johnson 3d (76)
Year of Election or Appointment: 1991
Mr. Johnson is Chairman of the Board of Trustees. Mr. Johnson serves as President (2006-present), Chief Executive Officer, Chairman, and a Director of FMR Corp.; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman (2001-present) and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of Fidelity International Limited (FIL).
Robert L. Reynolds (54)
Year of Election or Appointment: 2003
Mr. Reynolds is President and a Director of FMR (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and FMR Co., Inc. (2005-present). Mr. Reynolds also serves as Vice Chairman (2006- present), a Director (2003-present), and Chief Operating Officer of FMR Corp. and a Director of Strategic Advisers, Inc. (2005-present). He also serves on the Board at Fidelity Investments Canada, Ltd.
* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.
Independent Trustees:
Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Age; Principal Occupation
Dennis J. Dirks (58)
Year of Election or Appointment: 2005
Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC) (1999-2003). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) (1999-2003) and President and Board member of the National Securities Clearing Corporation (NSCC) (1999-2003). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation (2001-2003) and Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation (2001-2003). Mr. Dirks also serves as a Trustee and a member of the Finance Committee of Manhattan College (2005-present) and a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-present).
Albert R. Gamper, Jr. (64)
Year of Election or Appointment: 2006
Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (1989-2002). He currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2001-present), Chairman of the Board of Governors, Rutgers University (2004-present), and Chairman of the Board of Saint Barnabas Health Care System.
George H. Heilmeier (70)
Year of Election or Appointment: 2004
Dr. Heilmeier is Chairman Emeritus of Telcordia Technologies (communication software and systems), where prior to his retirement, he served as company Chairman and Chief Executive Officer. He currently serves on the Boards of Directors of The Mitre Corporation (systems engineering and information technology support for the government), and HRL Laboratories (private research and development, 2004-present). He is Chairman of the General Motors Science & Technology Advisory Board and a Life Fellow of the Institute of Electrical and Electronics Engineers (IEEE). Dr. Heilmeier is a member of the Defense Science Board and the National Security Agency Advisory Board. He is also a member of the National Academy of Engineering, the American Academy of Arts and Sciences, and the Board of Overseers of the School of Engineering and Applied Science of the University of Pennsylvania. Previously, Dr. Heilmeier served as a Director of TRW Inc. (automotive, space, defense, and information technology, 1992-2002), Compaq (1994-2002), Automatic Data Processing, Inc. (ADP) (technology-based business outsourcing, 1995-2002), INET Technologies Inc. (telecommunications network surveillance, 2001-2004), and Teletech Holdings (customer management services). He is the recipient of the 2005 Kyoto Prize in Advanced Technology for his invention of the liquid crystal display, and a member of the Consumer Electronics Hall of Fame.
James H. Keyes (66)
Year of Election or Appointment: 2007
Prior to his retirement in 2003, Mr. Keyes was Chairman, President, and Chief Executive Officer of Johnson Controls, Inc. (automotive supplier, 1993-2003). He currently serves as a member of the boards of LSI Logic Corporation (semiconductor technologies), Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, 2002-present), and Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions).
Marie L. Knowles (60)
Year of Election or Appointment: 2001
Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company. She served as a Director of ARCO from 1996 to 1998. She currently serves as a Director of Phelps Dodge Corporation (copper mining and manufacturing) and McKesson Corporation (healthcare service, 2002-present). Ms. Knowles is a Trustee of the Brookings Institution and the Catalina Island Conservancy and also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California.
Ned C. Lautenbach (63)
Year of Election or Appointment: 2000
Mr. Lautenbach is Chairman of the Independent Trustees (2006-present). Mr. Lautenbach has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Sony Corporation (2006-present) and Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. He also is a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations.
Cornelia M. Small (62)
Year of Election or Appointment: 2005
Ms. Small is a member (2000-present) and Chairperson (2002-present) of the Investment Committee, and a member (2002-present) of the Board of Trustees of Smith College. Previously, she served as Chief Investment Officer (1999-2000), Director of Global Equity Investments (1996-1999), and a member of the Board of Directors of Scudder, Stevens & Clark (1990-1997) and Scudder Kemper Investments (1997-1999). In addition, Ms. Small served as Co-Chair (2000-2003) of the Annual Fund for the Fletcher School of Law and Diplomacy.
William S. Stavropoulos (67)
Year of Election or Appointment: 2001
Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company. Since joining The Dow Chemical Company in 1967, Mr. Stavropoulos served in numerous senior management positions, including President (1993-2000; 2002-2003), CEO (1995-2000; 2002-2004), and Chairman of the Executive Committee (2000-2004). Currently, he is a Director of NCR Corporation (data warehousing and technology solutions), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate, 2002-present), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment firm, 2005-present). He is a special advisor to Clayton, Dubilier & Rice, Inc., a private equity investment firm. He also serves as a member of the Board of Trustees of the American Enterprise Institute for Public Policy Research. In addition, Mr. Stavropoulos is a member of The Business Council, J.P. Morgan International Council and the University of Notre Dame Advisory Council for the College of Science.
Kenneth L. Wolfe (68)
Year of Election or Appointment: 2005
Prior to his retirement in 2001, Mr. Wolfe was Chairman and Chief Executive Officer of Hershey Foods Corporation (1993-2001). He currently serves as a member of the boards of Adelphia Communications Corporation (2003-present), Bausch & Lomb, Inc., and Revlon Inc. (2004-present).
Advisory Board Member and Executive Officers:
Correspondence intended for each executive officer and Mr. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.
Name, Age; Principal Occupation
Peter S. Lynch (63)
Year of Election or Appointment: 2003
Member of the Advisory Board of Fidelity California Municipal Trust II. Mr. Lynch is Vice Chairman and a Director of FMR, and Vice Chairman (2001-present) and a Director of FMR Co., Inc. Previously, Mr. Lynch served as a Trustee of the Fidelity funds (1990-2003). In addition, he serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund.
Kimberley H. Monasterio (43)
Year of Election or Appointment: 2007
President and Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Ms. Monasterio also serves as President and Treasurer of other Fidelity funds (2007-present) and is an employee of FMR (2004-present). Previously, Ms. Monasterio served as Deputy Treasurer of the Fidelity funds (2004-2006). Before joining Fidelity Investments, Ms. Monasterio served as Treasurer (2000-2004) and Chief Financial Officer (2002-2004) of the Franklin Templeton Funds and Senior Vice President of Franklin Templeton Services, LLC (2000-2004).
Boyce I. Greer (51)
Year of Election or Appointment: 2006
Vice President of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Greer also serves as Vice President of certain Equity Funds (2005-present), certain Asset Allocation Funds (2005-present), Fixed-Income Funds (2006-present), and Money Market Funds (2006-present). Mr. Greer is also a Trustee of other investment companies advised by FMR (2003-present). He is an Executive Vice President of FMR (2005-present) and FMR Co., Inc. (2005-present), and Senior Vice President of Fidelity Investments Money Management, Inc. (2006-present). Previously, Mr. Greer served as a Director and Managing Director of Strategic Advisers, Inc. (2002-2005), and Executive Vice President (2000-2002) and Money Market Group Leader (1997-2002) of the Fidelity Investments Fixed Income Division. He also served as Vice President of Fidelity's Money Market Funds (1997-2002), Senior Vice President of FMR (1997-2002), and Vice President of FIMM (1998-2002).
Charles S. Morrison (46)
Year of Election or Appointment: 2005
Vice President of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Morrison also serves as Vice President of Fidelity's Money Market Funds (2005-present) and certain Asset Allocation Funds (2002-present). Previously, he served as Vice President of Fidelity's Bond Funds (2002-2005) and certain Balanced Funds (2002-2005). He served as Vice President (2002-2005) and Bond Group Leader (2002-2005) of Fidelity Investments Fixed Income Division. Mr. Morrison is also Vice President of FIMM (2002-present) and FMR (2002-present). Mr. Morrison joined Fidelity Investments in 1987 as a Corporate Bond Analyst in the Fixed Income Research Division.
David L. Murphy (59)
Year of Election or Appointment: 2002
Vice President of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Murphy also serves as Vice President of Fidelity's Money Market Funds (2002-present), certain Asset Allocation Funds (2003-present), Fixed-Income Funds (2005-present), and Balanced Funds (2005-present). He serves as Senior Vice President (2000-present) and Head (2004-present) of the Fidelity Investments Fixed Income Division. Mr. Murphy is also a Senior Vice President of Fidelity Investments Money Management, Inc. (2003-present) and an Executive Vice President of FMR (2005-present). Previously, Mr. Murphy served as Money Market Group Leader (2002-2004), Bond Group Leader (2000-2002), and Vice President of Fidelity's Taxable Bond Funds (2000-2002) and Fidelity's Municipal Bond Funds (2001-2002).
Douglas T. McGinley (41)
Year of Election or Appointment: 2006
Vice President and manager of California Municipal Money Market and California AMT Tax-Free Municipal Money Market. Mr. McGinley also serves as Vice President of other funds advised by FMR. Prior to assuming his current responsibilities, Mr. McGinley worked as an analyst and manager.
Eric D. Roiter (58)
Year of Election or Appointment: 1998
Secretary of California Municipal Money Market and California AMT Tax-Free Money Market. He also serves as Secretary of other Fidelity funds; Vice President, General Counsel, and Secretary of FMR Co., Inc. (2001-present) and FMR; Assistant Secretary of Fidelity Management & Research (U.K.) Inc. (2001-present), Fidelity Research & Analysis Company (2001-present), and Fidelity Investments Money Management, Inc. (2001-present). Mr. Roiter is an Adjunct Member, Faculty of Law, at Boston College Law School (2003-present). Previously, Mr. Roiter served as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (1998-2005).
Scott C. Goebel (39)
Year of Election or Appointment: 2007
Assistant Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Goebel also serves as Assistant Treasurer of other Fidelity funds (2007-present), Vice President and Secretary of FDC (2006-present), and is an employee of FMR.
R. Stephen Ganis (40)
Year of Election or Appointment: 2006
Anti-Money Laundering (AML) officer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Ganis also serves as AML officer of other Fidelity funds (2006-present) and FMR Corp. (2003-present). Before joining Fidelity Investments, Mr. Ganis practiced law at Goodwin Procter, LLP (2000-2002).
Joseph B. Hollis (58)
Year of Election or Appointment: 2006
Chief Financial Officer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Hollis also serves as Chief Financial Officer of other Fidelity funds. Mr. Hollis is President of Fidelity Pricing and Cash Management Services (FPCMS) (2005-present). Mr. Hollis also serves as President and Director of Fidelity Service Company, Inc. (2006-present). Previously, Mr. Hollis served as Senior Vice President of Cash Management Services (1999-2002) and Investment Management Operations (2002-2005).
Kenneth A. Rathgeber (59)
Year of Election or Appointment: 2004
Chief Compliance Officer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Rathgeber also serves as Chief Compliance Officer of other Fidelity funds (2004-present) and Executive Vice President of Risk Oversight for Fidelity Investments (2002-present). He is Chief Compliance Officer of FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), and Strategic Advisers, Inc. (2005-present). Previously, Mr. Rathgeber served as Executive Vice President and Chief Operating Officer for Fidelity Investments Institutional Services Company, Inc. (1998-2002).
Bryan A. Mehrmann (45)
Year of Election or Appointment: 2005
Deputy Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Mehrmann also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Corporation, Inc. (FIIOC) Client Services (1998-2004).
Kenneth B. Robins (37)
Year of Election or Appointment: 2005
Deputy Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Robins also serves as Deputy Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004) and a Senior Manager (1999-2000). In addition, Mr. Robins served as Assistant Chief Accountant, United States Securities and Exchange Commission (2000-2002).
Robert G. Byrnes (40)
Year of Election or Appointment: 2005
Assistant Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Byrnes also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Byrnes served as Vice President of FPCMS (2003-2005). Before joining Fidelity Investments, Mr. Byrnes worked at Deutsche Asset Management where he served as Vice President of the Investment Operations Group (2000-2003).
Peter L. Lydecker (53)
Year of Election or Appointment: 2004
Assistant Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Lydecker also serves as Assistant Treasurer of other Fidelity funds (2004) and is an employee of FMR.
Gary W. Ryan (48)
Year of Election or Appointment: 2005
Assistant Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Ryan also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Previously, Mr. Ryan served as Vice President of Fund Reporting in FPCMS (1999-2005).
Salvatore Schiavone (41)
Year of Election or Appointment: 2005
Assistant Treasurer of California Municipal Money Market and California AMT Tax-Free Money Market. Mr. Schiavone also serves as Assistant Treasurer of other Fidelity funds (2005-present) and is an employee of FMR (2005-present). Before joining Fidelity Investments, Mr. Schiavone worked at Deutsche Asset Management, where he most recently served as Assistant Treasurer (2003-2005) of the Scudder Funds and Vice President and Head of Fund Reporting (1996-2003).
Annual Report
Distributions
The Board of Trustees of each fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:
Fund
Pay Date
Record Date
Capital Gains
Fidelity California AMT Tax-Free Money Market Fund
04/16/07
04/13/07
$.0001
The funds hereby designate as capital gain dividend the amounts noted below for the taxable year ended February 28, 2007 or, if subsequently determined to be different, the net capital gain of such year.
Fund
Fidelity California AMT Tax-Free Money Market Fund
$736,725
Fidelity California Municipal Money Market Fund
$861,707
The fund will notify shareholders in January 2008 of amounts for use in preparing 2007 income tax returns.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees
Fidelity California AMT Tax-Free Money Market Fund
On March 15, 2007, the Board of Trustees, including the Independent Trustees (together, the Board), voted to approve an amended and restated management contract (the Amended Contract) for the fund, effective April 1, 2007. The Amended Contract lowers the fund's management fee from 43 basis points to 20 basis points of the fund's average daily net assets. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, considered a broad range of information.
In determining whether to approve the Amended Contract for the fund, the Board was aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.
Nature, Extent, and Quality of Services Provided by Fidelity. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the background of the fund's portfolio manager and the fund's investment objective and discipline.
Shareholder and Administrative Services. The Board considered the nature, quality, cost and extent of advisory, administrative, distribution and shareholder services performed by the Investment Advisers and affiliated companies.
Investment Performance. The Board noted that the approval of the Amended Contract would not change the fund's portfolio manager, the investment processes, the level or nature of services provided, the resources and personnel allocated, or its trading and compliance operations.
Based on this review of services, the Board concluded that the nature, extent, and quality of services provided to the fund will benefit shareholders of the fund.
Competitiveness of Management Fees and Total Fund Expenses. The Board considered that under the fund's existing management contract, the fund was paying an all-inclusive management fee, whereby FMR was responsible for payment of virtually all fund-level expenses. In approving the Amended Contract, the Board considered that the Amended Contract requires FMR to pay fund-level expenses (such as custody, pricing and bookkeeping, legal, and audit fees), but not class-level expenses (such as transfer agent fees and 12b-1 fees). The Board also considered that the Amended Contract reduces the fund's management fee from 43 basis points to 20 basis points of the fund's average daily assets. The Board noted that the lower management fee rate proposed for the fund would have ranked the fund's management fee below the median of its competitors for 2006.
Annual Report
Board Approval of Investment Advisory Contracts and Management Fees - continued
In connection with its review of the fund's total expenses, the Board considered the fund's management fee as well as the fund's non-management expenses, such as transfer agent fees. The Board approved changes (effective April 1, 2007) in the contractual arrangements for the fund that (i) set the transfer agent fee at 10 basis points, and (ii) limit total expenses of the fund to 35 basis points, pursuant to a new expense contract. The Board noted that projected total expenses for the fund's shareholders would be 30 basis points, and that total expenses may not exceed 35 basis points without Board and shareholder approval.
The Board recognized that, although the new flat transfer agent fee rate would be higher than the effective rate for calendar year 2006 (approximately 7.6 bp), total expenses paid by shareholders would be 5 to 10 basis points lower under the new contractual expense arrangements. The Board also noted that the projected total expenses of the fund would have ranked below the median of its competitors for 2006.
Based on this review, the Board concluded that the fund's management fee and total expenses were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.
Costs of the Services and Profitability. In connection with its approval of the fund's Amended Contract, the Board did not consider data regarding the impact on Fidelity's costs of services, revenues, or profitability from the new arrangement because it was approving an arrangement that reduces the management fee and total expenses that the fund pays. The Board noted Fidelity's assertion that reducing the management fee for the fund would reduce Fidelity's profitability. In connection with its future renewal of the fund's management contract and sub-advisory agreements, the Board will consider the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders.
Economies of Scale. In connection with its approval of the fund's Amended Contract, the Board did not consider economies of scale because the arrangement lowers the fund's management fee and, under the expense contract, FMR will bear all class-level expenses of the fund's existing class of shareholders so that the class's total expenses do not exceed 35 basis points. In connection with its future renewal of the fund's management contract and sub-advisory agreements, the Board will consider whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale.
Based on its evaluation of all of the conclusions noted above, and after consideration of all material factors, the Board concluded that the advisory fee structure is fair and reasonable, and that the Amended Contract should be approved.
Annual Report
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 Automated Service Telephone provides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security.
(phone_graphic)
Fidelity Automated Service Telephone (FAST®) 1-800-544-5555
Press
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
By PC
Fidelity's web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services.
(computer_graphic)
Fidelity's Web Site www.fidelity.com
* 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.
Annual Report
To Visit Fidelity
For directions and hours, please call 1-800-544-9797.
Arizona
7001 West Ray Road Chandler, AZ
15445 N. Scottsdale Road Scottsdale, AZ
California
815 East Birch Street Brea, CA
1411 Chapin Avenue Burlingame, CA
851 East Hamilton Avenue Campbell, CA
19200 Von Karman Avenue Irvine, CA
601 Larkspur Landing Circle Larkspur, CA
10100 Santa Monica Blvd. Los Angeles, CA
27101 Puerta Real Mission Viejo, CA
73-575 El Paseo Palm Desert, CA
251 University Avenue Palo Alto, CA
123 South Lake Avenue Pasadena, CA
16995 Bernardo Ctr. Drive Rancho Bernardo, CA
1220 Roseville Parkway Roseville, CA
1740 Arden Way Sacramento, CA
7676 Hazard Center Drive San Diego, CA
11943 El Camino Real San Diego, CA
8 Montgomery Street San Francisco, CA
3793 State Street Santa Barbara, CA
1200 Wilshire Boulevard Santa Monica, CA
21701 Hawthorne Boulevard Torrance, CA
2001 North Main Street Walnut Creek, CA
6300 Canoga Avenue Woodland Hills, CA
Colorado
1625 Broadway Denver, CO
9185 Westview Road Lone Tree, CO
Connecticut
48 West Putnam Avenue Greenwich, CT
265 Church Street New Haven, CT
300 Atlantic Street Stamford, CT
29 South Main Street West Hartford, CT
Delaware
400 Delaware Avenue Wilmington, DE
Florida
4400 N. Federal Highway Boca Raton, FL
121 Alhambra Plaza Coral Gables, FL
2948 N. Federal Highway Ft. Lauderdale, FL
4671 Town Center Parkway Jacksonville, FL
1907 West State Road 434 Longwood, FL
8880 Tamiami Trail, North Naples, FL
3501 PGA Boulevard Palm Beach Gardens, FL
3550 Tamiami Trail, South Sarasota, FL
1502 N. Westshore Blvd. Tampa, FL
2465 State Road 7 Wellington, FL
Georgia
3445 Peachtree Road, N.E. Atlanta, GA
1000 Abernathy Road Atlanta, GA
Illinois
One North LaSalle Street Chicago, IL
875 North Michigan Ave. Chicago, IL
1415 West 22nd Street Oak Brook, IL
1572 East Golf Road Schaumburg, IL
3232 Lake Avenue Wilmette, IL
Indiana
4729 East 82nd Street Indianapolis, IN
Kansas
5400 College Boulevard Overland Park, KS
Maine
Three Canal Plaza Portland, ME
Maryland
7315 Wisconsin Avenue Bethesda, MD
One W. Pennsylvania Ave. Towson, MD
Massachusetts
801 Boylston Street Boston, MA
155 Congress Street Boston, MA
300 Granite Street Braintree, MA
44 Mall Road Burlington, MA
238 Main Street Cambridge, MA
405 Cochituate Road Framingham, MA
416 Belmont Street Worcester, MA
Fidelity Brokerage Services, Inc., 100 Summer St., Boston, MA 02110 Member NYSE/SIPC
Annual Report
Michigan
500 E. Eisenhower Pkwy. Ann Arbor, MI
280 Old N. Woodward Ave. Birmingham, MI
43420 Grand River Avenue Novi, MI
29155 Northwestern Hwy. Southfield, MI
Minnesota
7600 France Avenue South Edina, MN
Missouri
1524 South Lindbergh Blvd. St. Louis, MO
Nevada
2225 Village Walk Drive Henderson, NV
New Jersey
150 Essex Street Millburn, NJ
56 South Street Morristown, NJ
396 Route 17, North Paramus, NJ
3518 Route 1 North Princeton, NJ
530 Broad Street Shrewsbury, NJ
New York
1055 Franklin Avenue Garden City, NY
37 West Jericho Turnpike Huntington Station, NY
1271 Avenue of the Americas New York, NY
980 Madison Avenue New York, NY
61 Broadway New York, NY
350 Park Avenue New York, NY
200 Fifth Avenue New York, NY
733 Third Avenue New York, NY
11 Penn Plaza New York, NY
2070 Broadway New York, NY
1075 Northern Blvd. Roslyn, NY
799 Central Park Avenue Scarsdale, NY
North Carolina
4611 Sharon Road Charlotte, NC
7011 Fayetteville Road Durham, NC
Ohio
3805 Edwards Road Cincinnati, OH
1324 Polaris Parkway Columbus, OH
28699 Chagrin Boulevard Woodmere Village, OH
Oregon
7493 SW Bridgeport Road Tigard, OR
Pennsylvania
600 West DeKalb Pike King of Prussia, PA
1735 Market Street Philadelphia, PA
12001 Perry Highway Wexford, PA
Rhode Island
47 Providence Place Providence, RI
Tennessee
6150 Poplar Avenue Memphis, TN
Texas
10000 Research Boulevard Austin, TX
4001 Northwest Parkway Dallas, TX
12532 Memorial Drive Houston, TX
2701 Drexel Drive Houston, TX
6560 Fannin Street Houston, TX
6500 N. MacArthur Blvd. Irving, TX
6005 West Park Boulevard Plano, TX
14100 San Pedro San Antonio, TX
1576 East Southlake Blvd. Southlake, TX
19740 IH 45 North Spring, TX
Utah
279 West South Temple Salt Lake City, UT
Virginia
1861 International Drive McLean, VA
Washington
411 108th Avenue, N.E. Bellevue, WA
1518 6th Avenue Seattle, WA
Washington, DC
1900 K Street, N.W. Washington, DC
Wisconsin
595 North Barker Road Brookfield, WI
Annual Report
To Write Fidelity
We'll give your correspondence immediate attention and send you written confirmation upon completion of your request.
As of the end of the period, February 28, 2007, Fidelity California Municipal Trust II (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3. Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Marie L. Knowles is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Knowles is independent for purposes of Item 3 of Form N-CSR.
Item 4. Principal Accountant Fees and Services
(a) Audit Fees.
For the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate Audit Fees billed by PricewaterhouseCoopers LLP (PwC) for professional services rendered for the audits of the financial statements, or services that are normally provided in connection with statutory and regulatory filings or engagements for those fiscal years, for the Fidelity California AMT Tax-Free Money Market Fund, and Fidelity California Municipal Money Market Fund (the funds) and for all funds in the Fidelity Group of Funds are shown in the table below.
Fund
2007A
2006A
Fidelity California AMT Tax-Free Money Market Fund
$43,000
$38,000
Fidelity California Municipal Money Market Fund
$47,000
$44,000
All funds in the Fidelity Group of Funds audited by PwC
$14,100,000
$12,500,000
A
Aggregate amounts may reflect rounding.
(b) Audit-Related Fees.
In each of the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate Audit-Related Fees billed by PwC for services rendered for assurance and related services to each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Fund
2007A
2006A
Fidelity California AMT Tax-Free Money Market Fund
$0
$0
Fidelity California Municipal Money Market Fund
$0
$0
A
Aggregate amounts may reflect rounding.
In each of the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate Audit-Related Fees that were billed by PwC that were required to be approved by the Audit Committee for services rendered on behalf of Fidelity Management & Research Company (FMR) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the funds ("Fund Service Providers") for assurance and related services that relate directly to the operations and financial reporting of each fund that are reasonably related to the performance of the audit or review of the fund's financial statements, but not reported as Audit Fees, are shown in the table below.
Billed By
2007A
2006A
PwC
$0
$0
A
Aggregate amounts may reflect rounding.
Fees included in the audit-related category comprise assurance and related services (e.g., due diligence services) that are traditionally performed by the independent registered public accounting firm. These audit-related services include due diligence related to mergers and acquisitions, accounting consultations and audits in connection with acquisitions, internal control reviews, attest services that are not required by statute or regulation and consultation concerning financial accounting and reporting standards.
(c) Tax Fees.
In each of the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate Tax Fees billed by PwC for professional services rendered for tax compliance, tax advice, and tax planning for each fund is shown in the table below.
Fund
2007A
2006A
Fidelity California AMT Tax-Free Money Market Fund
$1,900
$1,800
Fidelity California Municipal Money Market Fund
$1,900
$1,800
A
Aggregate amounts may reflect rounding.
In each of the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate Tax Fees billed by PwC that were required to be approved by the Audit Committee for professional services rendered on behalf of the Fund Service Providers for tax compliance, tax advice, and tax planning that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By
2007A
2006A
PwC
$0
$0
A
Aggregate amounts may reflect rounding.
Fees included in the Tax Fees category comprise all services performed by professional staff in the independent registered public accounting firm's tax division except those services related to the audit. Typically, this category would include fees for tax compliance, tax planning, and tax advice. Tax compliance, tax advice, and tax planning services include preparation of original and amended tax returns, claims for refund and tax payment-planning services, assistance with tax audits and appeals, tax advice related to mergers and acquisitions and requests for rulings or technical advice from taxing authorities.
(d) All Other Fees.
In each of the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate Other Fees billed by PwC for all other non-audit services rendered to the funds is shown in the table below.
Fund
2007A
2006A
Fidelity California AMT Tax-Free Money Market Fund
$2,500
$2,200
Fidelity California Municipal Money Market Fund
$3,400
$3,500
A
Aggregate amounts may reflect rounding.
In each of the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate Other Fees billed by PwC that were required to be approved by the Audit Committee for all other non-audit services rendered on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund is shown in the table below.
Billed By
2007A
2006A
PwC
$125,000
$155,000
A
Aggregate amounts may reflect rounding.
Fees included in the All Other Fees category include services related to internal control reviews, strategy and other consulting, financial information systems design and implementation, consulting on other information systems, and other tax services unrelated to the fund.
(e) (1)
Audit Committee Pre-Approval Policies and Procedures:
The trust's Audit Committee must pre-approve all audit and non-audit services provided by the independent registered public accounting firm relating to the operations or financial reporting of the funds. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The trust's Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity Fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (Covered Service) are subject to approval by the Audit Committee before such service is provided. Non-audit services provided by a fund audit firm for a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund (Non-Covered Service) but that are expected to exceed $50,000 are also subject to pre-approval by the Audit Committee.
All Covered Services, as well as Non-Covered Services that are expected to exceed $50,000, must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee. Neither pre-approval nor advance notice of Non-Covered Service engagements for which fees are not expected to exceed $50,000 is required; such engagements are to be reported to the Audit Committee monthly.
(e) (2)
Services approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X:
Audit-Related Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended February 28, 2007 and February 28, 2006 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended February 28, 2007 and February 28, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
Tax Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended February 28, 2007 and February 28, 2006 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended February 28, 2007 and February 28, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
All Other Fees:
There were no amounts that were approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended February 28, 2007 and February 28, 2006 on behalf of each fund.
There were no amounts that were required to be approved by the Audit Committee pursuant to the de minimis exception for the fiscal years ended February 28, 2007 and February 28, 2006 on behalf of the Fund Service Providers that relate directly to the operations and financial reporting of each fund.
(f) Not applicable.
(g) For the fiscal years ended February 28, 2007 and February 28, 2006, the aggregate fees billed by PwC of $1,265,000A and $1,175,000A for non-audit services rendered on behalf of the funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) and Fund Service Providers relating to Covered Services and Non-Covered Services are shown in the table below.
2007A
2006A
Covered Services
$135,000
$175,000
Non-Covered Services
$1,130,000
$1,000,000
A
Aggregate amounts may reflect rounding.
(h) The trust's Audit Committee has considered Non-Covered Services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the funds, taking into account representations from PwC, in accordance with Independence Standards Board Standard No.1, regarding its independence from the funds and their related entities.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. Schedule of Investments
Not applicable.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10. Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.
Item 11. Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.
Item 12. Exhibits
(a)
(1)
Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.
(a)
(2)
Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.
(a)
(3)
Not applicable.
(b)
Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity California Municipal Trust II
By:
/s/Kimberley Monasterio
Kimberley Monasterio
President and Treasurer
Date:
April 19, 2007
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By:
/s/Kimberley Monasterio
Kimberley Monasterio
President and Treasurer
Date:
April 19, 2007
By:
/s/Joseph B. Hollis
Joseph B. Hollis
Chief Financial Officer
Date:
April 19, 2007
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