Notes
to
Financial Statements
For the period ended January 31, 2013
(Amounts in thousands except percentages)
1. Organization.
Fidelity New York Municipal Income Fund (the Fund) is a non-diversified fund of Fidelity New York Municipal Trust (the Trust) and is authorized
to issue an unlimited number of shares. 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 Massachusetts business trust. The Fund offers Class A, Class T, Class C, New York
Municipal Income, and Institutional Class shares, each of which, along with Class B shares, has equal rights as to assets and voting privileges. Class
B shares are closed to new accounts and additional purchases, except for exchanges and reinvestments. Each class has exclusive voting rights with
respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the
initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain
fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net
assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions
may also differ by class. The Fund may be affected by economic and political developments in the state of New York.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP),
which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from
those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of
the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation.
Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. In accordance with valuation
policies and procedures approved by the Board of Trustees (the Board), the Fund attempts to obtain prices from one or more third party pricing
vendors or brokers to value its investments. When current market prices, quotations or currency exchange rates are not readily available or
reliable, investments will be fair valued in good faith by the Fidelity Management & Research Company (FMR) Fair Value Committee (the Committee), in accordance with procedures adopted by the Board. Factors used in determining fair value vary by investment type and may include market
or investment specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and they may be utilized to a significant extent. The Committee oversees the Fund's valuation policies and procedures and is responsible for
approving and reporting to the Board all fair value determinations.
Annual Report
2. Significant Accounting Policies - continued
Investment Valuation - continued
The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as
shown below:
Level 1 - quoted prices in active markets for identical investments
Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
Level 3 - unobservable inputs (including the Fund's own assumptions based on the best information available)
Valuation techniques used to value the Fund's investments by major category are as follows:
Debt securities, including restricted securities, are valued based on evaluated prices received from third party pricing vendors or from brokers who
make markets in such securities. For municipal securities, pricing vendors utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as broker-supplied prices. When independent prices are unavailable or unreliable, debt securities
may be valued utilizing pricing methodologies which consider similar factors that would be used by third party pricing vendors. Debt securities are
generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.
Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy.
Investment Transactions and Income.
For financial reporting purposes, the Fund's investment holdings and net asset value (NAV) include
trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as
of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of
the prior business day. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned.
Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities.
Expenses.
Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the
respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate
and adjustments are made when actual amounts are known.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders.
Each year, the Fund intends to qualify as a regulated investment company under
Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for income taxes is required. As of January 31, 2013, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the
Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in
the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. A fund's federal income tax
returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax
returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and
recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain
distributions are determined in accordance with income tax regulations, which may differ from GAAP. In addition, the fund claimed 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 market discount, deferred trustee compensation and futures contracts.
The Fund purchases municipal securities whose interest, in the opinion of the issuer, is free from federal income tax. There is no assurance that
the 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.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
|
Gross unrealized appreciation
|
$ 149,993
|
|
Gross unrealized depreciation
|
(800
)
|
|
Net unrealized appreciation (depreciation) on securities and other investments
|
$ 149,193
|
|
|
|
|
Tax Cost
|
$ 1,884,166
|
Annual Report
2. Significant Accounting Policies - continued
Income Tax Information and Distributions to Shareholders - continued
The tax-based components of distributable earnings as of period end were as follows:
|
Undistributed tax-exempt income
|
$ 100
|
|
Undistributed long-term capital gain
|
$ 178
|
|
Net unrealized appreciation (depreciation)
|
$ 149,193
|
The tax character of distributions paid was as follows:
|
|
January 31, 2013
|
January 31, 2012
|
|
Tax-exempt Income
|
$ 64,026
|
$ 67,040
|
|
Long-term Capital Gains
|
4,813
|
4,341
|
|
Total
|
$ 68,839
|
$ 71,381
|
Short-Term Trading (Redemption) Fees.
Shares held by investors in the Fund less than 30 days are subject to a redemption fee equal to .50% of
the net asset value of shares redeemed. All redemption fees, which reduce the proceeds of the shareholder redemption, are retained by the Fund
and accounted for as an addition to paid in capital.
Delayed Delivery Transactions and When-Issued Securities.
During the period, the Fund transacted in securities on a delayed delivery or
when-issued basis. Payment and delivery may take place after the customary settlement period for that security. The price of the underlying
securities and the date when the securities will be delivered and paid for are fixed at the time the transaction is negotiated. The securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued security. With respect to purchase commitments, the Fund identifies
securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of
the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to
political, economic, or other factors.
3. Purchases and Sales of Investments.
Purchases and sales of securities, other than short-term securities, aggregated $449,457 and $319,140, respectively.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
4. Fees and Other Transactions with Affiliates.
Management Fee.
FMR and its affiliates provide the 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 an annualized 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.
Distribution and Service Plan Fees.
In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans
for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each
of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the
Fund and providing shareholder support services. For the period, the Distribution and Service Fee rates, total fees and amounts retained by FDC were
as follows:
|
|
Distribution
Fee
|
Service
Fee
|
Total Fees
|
Retained
by FDC
|
|
Class A
|
-%
|
.25%
|
$ 121
|
$ 15
|
|
Class T
|
-%
|
.25%
|
22
|
-
|
|
Class B
|
.65%
|
.25%
|
30
|
22
|
|
Class C
|
.75%
|
.25%
|
358
|
62
|
|
|
|
|
$ 531
|
$ 99
|
Sales Load.
FDC may receive a front-end sales charge of up to 4.00% for selling Class A shares and Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. Depending on the holding period, FDC may receive contingent deferred sales charges levied on
Class A, Class T, Class B, and Class C redemptions. The deferred sales charges range from 5.00% to 1.00% for Class B shares, 1.00% for Class C
shares, .75% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.
For the period, sales charge amounts retained by FDC were as follows:
|
|
Retained
by FDC
|
|
Class A
|
$ 19
|
|
Class T
|
1
|
|
Class B
*
|
4
|
|
Class C
*
|
3
|
|
|
$ 27
|
*
When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.
Annual Report
4. Fees and Other Transactions with Affiliates - continued
Transfer Agent and Accounting Fees.
Citibank, N.A. (Citibank) is the custodian, transfer agent, and servicing agent for the Fund's Class A,
Class T, Class B, Class C, New York Municipal Income and Institutional Class shares. Citibank has entered into a sub-arrangement with Fidelity
Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, with respect to all classes of the Fund, to perform the transfer
agency, dividend disbursing, and shareholder servicing functions. FIIOC receives account fees and asset-based fees that vary according to the
account size and type of account of the shareholders of the respective classes of the Fund. All fees are paid to FIIOC by Citibank, which is reimbursed by each class for such payments. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the
period, transfer agent fees for each class were as follows:
|
|
Amount
|
% of
Average
Net Assets
|
|
Class A
|
$ 60
|
.12
|
|
Class T
|
6
|
.07
|
|
Class B
|
3
|
.09
|
|
Class C
|
51
|
.14
|
|
New York Municipal Income
|
1,367
|
.07
|
|
Institutional Class
|
26
|
.13
|
|
|
$ 1,513
|
|
Citibank also has a sub-arrangement with Fidelity Service Company, Inc. (FSC), an affiliate of FMR, under which FSC maintains the Fund's
accounting records.
The fee is paid to Citibank and is based on the level of average net assets for each month.
5. Committed Line of Credit.
The Fund participates with other funds managed by FMR or an affiliate in a $4.25 billion credit facility (the "line of credit") to be utilized for
temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $5 and is reflected in Miscellaneous expenses on the Statement of Operations. During the period, there were no borrowings on this line of credit.
Annual Report
Notes to Financial Statements - continued
(Amounts in thousands except percentages)
6. Expense Reductions.
Through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses.
During the period, these credits reduced the Fund's custody and accounting expenses by $24 and $32, respectively.
7. Distributions to Shareholders.
Distributions to shareholders of each class were as follows:
|
Years ended January 31,
|
2013
|
2012
|
|
From net investment income
|
|
|
|
Class A
|
$ 1,391
|
$ 1,262
|
|
Class T
|
254
|
282
|
|
Class B
|
76
|
109
|
|
Class C
|
758
|
866
|
|
New York Municipal Income
|
60,933
|
64,000
|
|
Institutional Class
|
614
|
521
|
|
Total
|
$ 64,026
|
$ 67,040
|
|
From net realized gain
|
|
|
|
Class A
|
$ 115
|
$ 85
|
|
Class T
|
21
|
20
|
|
Class B
|
8
|
10
|
|
Class C
|
85
|
78
|
|
New York Municipal Income
|
4,535
|
4,114
|
|
Institutional Class
|
49
|
34
|
|
Total
|
$ 4,813
|
$ 4,341
|
8. Share Transactions.
Transactions for each class of shares were as follows:
|
|
Shares
|
Dollars
|
|
Years ended January 31,
|
2013
|
2012
|
2013
|
2012
|
|
Class A
|
|
|
|
|
|
Shares sold
|
1,322
|
946
|
$ 18,008
|
$ 12,308
|
|
Reinvestment of distributions
|
78
|
69
|
1,066
|
896
|
|
Shares redeemed
|
(649
)
|
(526
)
|
(8,823
)
|
(6,767
)
|
|
Net increase (decrease)
|
751
|
489
|
$ 10,251
|
$ 6,437
|
|
Class T
|
|
|
|
|
|
Shares sold
|
88
|
85
|
$ 1,201
|
$ 1,135
|
|
Reinvestment of distributions
|
14
|
18
|
198
|
228
|
|
Shares redeemed
|
(92
)
|
(117
)
|
(1,252
)
|
(1,504
)
|
|
Net increase (decrease)
|
10
|
(14
)
|
$ 147
|
$ (141
)
|
Annual Report
8. Share Transactions - continued
|
|
Shares
|
Dollars
|
|
Years ended January 31,
|
2013
|
2012
|
2013
|
2012
|
|
Class B
|
|
|
|
|
|
Shares sold
|
7
|
6
|
$ 103
|
$ 79
|
|
Reinvestment of distributions
|
4
|
5
|
48
|
67
|
|
Shares redeemed
|
(49
)
|
(79
)
|
(671
)
|
(1,014
)
|
|
Net increase (decrease)
|
(38
)
|
(68
)
|
$ (520
)
|
$ (868
)
|
|
Class C
|
|
|
|
|
|
Shares sold
|
581
|
479
|
$ 7,938
|
$ 6,219
|
|
Reinvestment of distributions
|
35
|
40
|
484
|
521
|
|
Shares redeemed
|
(443
)
|
(533
)
|
(6,063
)
|
(6,833
)
|
|
Net increase (decrease)
|
173
|
(14
)
|
$ 2,359
|
$ (93
)
|
|
New York Municipal Income
|
|
|
|
|
|
Shares sold
|
23,237
|
25,101
|
$ 316,771
|
$ 324,712
|
|
Reinvestment of distributions
|
3,428
|
3,806
|
46,812
|
49,276
|
|
Shares redeemed
|
(20,118
)
|
(21,372
)
|
(274,418
)
|
(274,892
)
|
|
Net increase (decrease)
|
6,547
|
7,535
|
$ 89,165
|
$ 99,096
|
|
Institutional Class
|
|
|
|
|
|
Shares sold
|
688
|
304
|
$ 9,386
|
$ 3,957
|
|
Reinvestment of distributions
|
23
|
21
|
321
|
269
|
|
Shares redeemed
|
(191
)
|
(221
)
|
(2,610
)
|
(2,825
)
|
|
Net increase (decrease)
|
520
|
104
|
$ 7,097
|
$ 1,401
|
9. Other.
The Fund's 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 Fund. In the normal course of business, the Fund may also enter into contracts that provide
general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that
may be made against the Fund. The risk of material loss from such claims is considered remote.
Annual Report
To the Trustees of Fidelity New York Municipal Trust and Shareholders of Fidelity New York Municipal Income Fund:
We have audited the accompanying statement of assets and liabilities of Fidelity New York Municipal Income Fund (the Fund), a fund of Fidelity
New York Municipal Trust, including the schedule of investments, as of January 31, 2013, and the related statement of operations for the year then
ended, the statement of changes in 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. These financial statements and financial highlights are the responsibility of the Fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits 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 and financial highlights are free of
material misstatement. The Fund is not required to have, nor were we engaged to perform, an audit of its internal control over financial reporting.
Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund's internal control over financial reporting. Accordingly, we express no such opinion. An audit also 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, as well as evaluating the overall financial
statement presentation. Our procedures included confirmation of securities owned as of January 31, 2013, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial position of
Fidelity New York Municipal Income Fund as of January 31, 2013, the results of its operations for the year then ended, the changes in its 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.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
March 12, 2013
Annual Report
The Trustees and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible
for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the
fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated
with such activities and contractual arrangements, and review the fund's performance. Except for Elizabeth S. Acton and James C. Curvey, each of
the Trustees oversees 219 Fidelity funds. Ms. Acton oversees 201 Fidelity funds. Mr. Curvey oversees 453 Fidelity funds.
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 month in which his or her 75th birthday
occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers hold
office without limit in time, except that any officer 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.
Experience, Skills, Attributes, and Qualifications of the Fund's Trustees.
The Governance and Nominating Committee has adopted a
statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent
Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a
Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages
professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills
consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent
Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition,
the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing
and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none
of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications,
attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information
about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the
Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Annual Report
Board Structure and Oversight Function.
Abigail P. Johnson is an interested person (as defined in the 1940 Act) and currently serves as
Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman
has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed
business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or
a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees
to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Albert R. Gamper, Jr. serves
as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to
matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, and asset
allocation funds and another Board oversees Fidelity's equity and high income funds. The asset allocation funds may invest in Fidelity funds that
are overseen by such other Board. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity
funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the
separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees,
the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and
associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the
occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls
to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and
(iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification
and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or
through FMR, its affiliates and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the
Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised
primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to
enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the
development of additional risk reporting to the Board. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer
(CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to
the Board's committees, as appropriate, including an annual review of FMR's risk management program for the Fidelity funds. The responsibilities
of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Fund's Trustees."
Annual Report
Trustees and Officers - continued
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, 245 Summer Street, Boston, Massachusetts 02210.
|
Name, Age; Principal Occupations and Other Relevant Experience
+
|
|
Abigail P. Johnson (51)
|
|
|
Year of Election or Appointment: 2009
Ms. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Ms. Johnson serves as President of Fidelity
Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms.
Johnson is Chairman and Director of FMR Co., Inc. (2011-present), Chairman and Director of FMR (2011-present), and
the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of
FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc.,
and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity funds (2001-2005), and managed a number of
Fidelity funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.
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James C. Curvey (77)
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Year of Election or Appointment: 2007
Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director
of Fidelity Investments Money Management, Inc. (2009-present), Director of Fidelity Research & Analysis Co.
(2009-present) and Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2007-present)
and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a
member of the Trustees of Villanova University. Previously, Mr. Curvey was the Vice Chairman (2006-2007) and Director
(2000-2007) of FMR Corp.
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* 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.
+
The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee
should serve as a Trustee for the fund.
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.
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Name, Age; Principal Occupations and Other Relevant Experience
+
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Elizabeth S. Acton (61)
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Year of Election or Appointment: 2013
Ms. Acton is Trustee of certain Trusts. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President,
Finance (November 2011-April 2012), Executive Vice President, Chief Financial Officer (April 2002-November 2011),
and Treasurer (May 2004-May 2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms.
Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer
(2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms.
Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA,
Inc. (homebuilding, 2012-present).
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Albert R. Gamper, Jr. (70)
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Year of Election or Appointment: 2006
Mr. Gamper is Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds (2012-present). 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 (2002-2003). Mr.
Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present),
a member of the Board of Trustees, Rutgers University (2004-present), and Chairman of the Board of Barnabas Health
Care System. Previously, Mr. Gamper served as Vice Chairman of the Independent Trustees of the Fixed Income and Asset
Allocation Funds (2011-2012) and as Chairman of the Board of Governors, Rutgers University (2004-2007).
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Robert F. Gartland (61)
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Year of Election or Appointment: 2010
Mr. Gartland is Chairman and an investor in Gartland and Mellina Group Corp. (consulting, 2009-present). Previously,
Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior
to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including
Managing Director (1987-2007).
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Arthur E. Johnson (66)
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Year of Election or Appointment: 2008
Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation (diversified power management,
2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management
consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic
Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of
Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not
related to Ms. Abigail P. Johnson.
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Michael E. Kenneally (58)
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Year of Election or Appointment: 2009
Previously, Mr. Kenneally served as a Member of the Advisory Board for certain Fidelity Fixed Income and Asset
Allocation Funds (2008-2009). Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive
Officer of Credit Suisse Asset Management (2003-2005). Mr. Kenneally was a Director of the Credit Suisse Funds (U.S.
mutual funds, 2004-2008) and certain other closed-end funds (2004-2005) and was awarded the Chartered Financial
Analyst (CFA) designation in 1991.
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James H. Keyes (72)
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Year of Election or Appointment: 2007
Mr. Keyes serves as a member of the Boards of Navistar International Corporation (manufacture and sale of trucks,
buses, and diesel engines, since 2002) and Pitney Bowes, Inc. (integrated mail, messaging, and document management
solutions, since 1998). Prior to his retirement, Mr. Keyes served as Chairman and Chief Executive Officer of Johnson
Controls (automotive, building, and energy, 1998-2002) and as a member of the Board of LSI Logic Corporation
(semiconductor technologies, 1984-2008).
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Marie L. Knowles (66)
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Year of Election or Appointment: 2001
Ms. Knowles is Vice Chairman of the Independent Trustees of the Fixed Income and Asset Allocation Funds
(2012-present). 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. Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson
Corporation (healthcare service, since 2002). Ms. Knowles is an Honorary Trustee of the Brookings Institution and a
member of the Board of the Catalina Island Conservancy and of the Santa Catalina Island Company (2009-present).
She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern
California and the Foundation Board of the School of Architecture at the University of Virginia (2007-present).
Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing,
1994-2007).
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Kenneth L. Wolfe (73)
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Year of Election or Appointment: 2005
Prior to his retirement, Mr. Wolfe served as Chairman and a Director (2007-2009) and Chairman and Chief Executive
Officer (1994-2001) of Hershey Foods Corporation. He also served as a member of the Boards of Adelphia
Communications Corporation (telecommunications, 2003-2006), Bausch & Lomb, Inc. (medical/pharmaceutical,
1993-2007), and Revlon, Inc. (personal care products, 2004-2009). Mr. Wolfe previously served as Chairman of the
Independent Trustees of the Fixed Income and Asset Allocation Funds (2008-2012).
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+
The information above includes each Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to each Trustee's qualifications to serve as a Trustee, which led to the conclusion that each Trustee
should serve as a Trustee for the fund.
Executive Officers
:
Correspondence intended for each executive officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
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Name, Age; Principal Occupation
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Stephanie J. Dorsey (43)
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Year of Election or Appointment: 2013
President and Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Ms. Dorsey also serves as Assistant
Treasurer of other Fidelity funds (2010-present) and is an employee of Fidelity Investments (2008-present). Previously,
Ms. Dorsey served as Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds (2008-2013), Treasurer
(2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
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Charles S. Morrison (52)
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Year of Election or Appointment: 2012
Vice President of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Morrison also serves as President, Fixed Income
and is an employee of Fidelity Investments. Previously, Mr. Morrison served as Vice President of Fidelity's Money Market
Funds (2005-2009), President, Money Market Group Leader of FMR (2009), and Senior Vice President, Money Market
Group of FMR (2004-2009). Mr. Morrison also served as Vice President of Fidelity's Bond Funds (2002-2005), certain
Balanced Funds (2002-2005), and certain Asset Allocation Funds (2002-2007), and as Senior Vice President
(2002-2005) of Fidelity's Fixed Income Division.
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Robert P. Brown (49)
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Year of Election or Appointment: 2012
Vice President of Fidelity's Bond Funds. Mr. Brown also serves as Executive Vice President of Fidelity Investments Money
Management, Inc. (2010-present), President, Bond Group of FMR (2011-present), Director and Managing Director,
Research of Fidelity Management & Research (U.K.) Inc. (2008-present) and is an employee of Fidelity Investments.
Previously, Mr. Brown served as President, Money Market Group of FMR (2010-2011) and Vice President of Fidelity's
Money Market Funds (2010-2012).
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Scott C. Goebel (45)
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Year of Election or Appointment: 2008
Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as Secretary of Fidelity Investments
Money Management, Inc. (FIMM) (2010-present) and Fidelity Research and Analysis Company (FRAC) (2010-present);
Secretary and CLO of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present); General
Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); employed by FMR
LLC or an affiliate (2001-present); Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited
(2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), and Fidelity
Management & Research (U.K.) Inc. (2008-present). Previously, Mr. Goebel served as Assistant Secretary of FIMM
(2008-2010), FRAC (2008-2010), and the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors
Corporation (FDC) (2005-2007).
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Ramon Herrera (38)
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Year of Election or Appointment: 2012
Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Herrera also serves as Vice President,
Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2004-present).
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Elizabeth Paige Baumann (44)
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Year of Election or Appointment: 2012
Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Baumann also serves as AML Officer of The North
Carolina Capital Management Trust: Cash and Term Portfolios (2012-present), Chief AML Officer of FMR LLC
(2012-present), and is an employee of Fidelity Investments. Previously, Ms. Baumann served as Vice President and Deputy
Anti-Money Laundering Officer (2007-2012).
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Christine Reynolds (54)
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Year of Election or Appointment: 2008
Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management
Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously,
Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007).
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Michael H. Whitaker (45)
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Year of Election or Appointment: 2008
Chief Compliance Officer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Whitaker also serves as Chief
Compliance Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2008-present). Mr.
Whitaker is an employee of Fidelity Investments (2007-present). Prior to joining Fidelity Investments, Mr. Whitaker
worked at MFS Investment Management where he served as Senior Vice President and Chief Compliance Officer
(2004-2006), and Assistant General Counsel.
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Joseph F. Zambello (55)
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Year of Election or Appointment: 2011
Deputy Treasurer of the Fidelity funds. Mr. Zambello is an employee of Fidelity Investments. Previously, Mr. Zambello
served as Vice President of FMR's Program Management Group (2009-2011) and Vice President of the Transfer Agent
Oversight Group (2005-2009).
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Stephen Sadoski (41)
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Year of Election or Appointment: 2013
Deputy Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Sadoski also serves as Deputy Treasurer of
other Fidelity funds (2012-present) and is an employee of Fidelity Investments (2012-present). Previously, Mr. Sadoski
served as Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds (2012-2013), an assistant chief
accountant in the Division of Investment Management of the Securities and Exchange Commission (SEC) (2009-2012) and
as a senior manager at Deloitte & Touche (1997-2009).
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Adrien E. Deberghes (45)
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Year of Election or Appointment: 2010
Assistant Treasurer of Fidelity's Fixed Income and Asset Allocation Funds. Mr. Deberghes also serves as Vice President
and Assistant Treasurer (2011-present) and Deputy Treasurer (2008-present) of other Fidelity funds, and is an employee
of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund
Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank
& Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005).
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Kenneth B. Robins (43)
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Year of Election or Appointment: 2009
Assistant Treasurer of the Fidelity Fixed Income and Asset Allocation Funds. Mr. Robins also serves as President and
Treasurer of other Fidelity funds (2008-present; 2010-present) and is an employee of Fidelity Investments (2004-present).
Previously, Mr. Robins served as Deputy Treasurer of the Fidelity funds (2005-2008) and Treasurer and Chief Financial
Officer of The North Carolina Capital Management Trust: Cash and Term Portfolios (2006-2008).
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Gary W. Ryan (54)
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Year of Election or Appointment: 2005
Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as
Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005).
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Jonathan Davis (44)
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Year of Election or Appointment: 2010
Assistant Treasurer of the Fidelity funds. Mr. Davis is also Assistant Treasurer of Fidelity Rutland Square Trust II and
Fidelity Commonwealth Trust II. Mr. Davis is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice
President and Associate General Counsel of FMR LLC (2003-2010).
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Annual Report
The Board of Trustees of Fidelity New York Municipal Income Fund voted to pay to shareholders of record at the opening of business on record
date, the following distribution per share derived from capital gains realized from sales of portfolio securities:
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Pay Date
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Record Date
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Capital Gains
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Retail Class
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03/11/2013
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03/08/2013
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$0.003
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The fund hereby designates as a capital gain dividend with the respect to the taxable year end January 31, 2013, $3,934,220 or if subsequently
determined to be different, the net capital gain of such year.
During fiscal year ended 2013, 100% of the fund's income dividends was free from federal income tax, and 1.99% of the fund's income dividends
was subject to the federal alternative minimum tax.
The fund will notify shareholders in January 2014 of amounts for use in preparing 2013 income tax returns.
Annual Report
Board
Approval
of Investment Advisory Contracts and Management Fees
Fidelity New York Municipal Income Fund
Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and
sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent
Trustees' counsel, requests and considers a broad range of information relevant to the renewal of the Advisory Contracts throughout the year.
The
Board
meets regularly and, at each of its meetings,
covers an extensive agenda of topics and materials and considers factors that are relevant
to its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established three standing committees, Operations, Audit, and Governance and Nominating, each composed of and chaired
by Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance
effective decision-making by the Board. The Operations Committee, of which all of the Independent Trustees are members, meets regularly
throughout the year and, among other matters, considers matters specifically related to the annual consideration of the renewal of the fund's
Advisory Contracts. The Board, acting directly and through its Committees, requests and receives information concerning the annual consideration
of the renewal of the fund's Advisory Contracts. The Board also meets as needed to consider matters specifically related to the Board's annual
consideration of the renewal of Advisory Contracts. Members of the Board may also meet with trustees of other Fidelity funds through ad hoc joint
committees to discuss certain matters relevant to the Fidelity funds.
At its September 2012 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory
Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the
services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's
management fee and total expense ratio relative to peer funds; (iii) the total costs of the services to be provided by and the profits to be realized by
Fidelity from its relationship with the fund; (iv) the extent to which economies of scale exist and would be realized as the fund grows; and (v)
whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.
In considering whether to renew the Advisory Contracts for the fund, the Board reached a determination, with the assistance of fund counsel and
Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts is in the best interests
of the fund and its shareholders and that the compensation payable under the Advisory Contracts is fair and reasonable. The Board's decision to
renew the Advisory Contracts was not based on any single factor, but rather was based on a comprehensive consideration of all the information
provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, 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
Fidelity's competitors, and that the fund's shareholders, who have 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.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Nature, Extent, and Quality of Services Provided.
The Board considered the staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel, and also considered the fund's investment
objective, strategies, and related investment philosophy. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this
structure provides appropriate incentives to act in the best interests of the fund.
Resources Dedicated to Investment Management and Support Services
. The Board reviewed the general qualifications and capabilities of the
Investment Advisers' investment staff, including its size, education, experience, and resources, as well as the Investment Advisers' approach to
recruiting, managing, and compensating investment personnel. The Board also noted that FMR has continued to increase the resources devoted to
non-U.S. offices, including expansion of Fidelity's global investment organization. The Board noted that Fidelity's analysts have extensive resources, tools and capabilities that allow them to conduct sophisticated quantitative and fundamental analysis, as well as credit analysis of issuers,
counterparties and guarantors. The Board also believes that Fidelity's investment professionals have sufficient access to global information and
data so as to provide competitive investment results over time, and that those professionals also have access to sophisticated tools that permit
them to assess portfolio construction and risk and performance attribution characteristics continuously, as well as to transmit new information and
research conclusions rapidly around the world. Additionally, in its deliberations, the Board considered the Investment Advisers' trading and risk
management capabilities and resources, which are an integral part of the investment management process.
Shareholder and Administrative Services
. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering
transfer agency and pricing and bookkeeping services for the fund; (ii) the nature and extent of the supervision of third party service providers,
principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and
procedures.
Annual Report
The Board noted that the growth of fund assets over time across the complex allows Fidelity to reinvest in the development of services designed to
enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and
market information through telephone representatives and over the Internet, investor education materials and asset allocation tools, and the
expanded availability of Fidelity Investor Centers.
Investment in a Large Fund Family
. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing a large variety of mutual fund investor
services. The Board noted that Fidelity had taken, or had made recommendations that resulted in the Fidelity funds taking, a number of actions over
the previous year that benefited particular funds, including (i) continuing to dedicate additional resources to investment research and support of the
senior management team that oversees asset management; (ii) persisting in efforts to enhance Fidelity's research capabilities, in particular, international research; (iii) launching new funds and making other enhancements to meet client needs for global and income-oriented solutions; (iv)
continuing to launch dedicated lower cost underlying funds to meet investment management's portfolio construction needs related to expanding
underlying fund options, specifically for the Freedom Fund product lines; (v) adopting a sector neutral investment approach for certain funds and
utilizing a team of portfolio managers to manage certain sector-neutral funds; (vi) rationalizing product lines and gaining increased efficiencies
through combinations of several funds with other funds; (vii) strengthening the Spartan Index Fund product line by adding new funds and/or new
low-cost institutional share classes, restructuring fund expenses to accommodate new classes, and reducing investment minimums for certain classes
of shares; (viii) modifying the eligibility criteria for Institutional Class shares to increase their appeal to government entities and charitable investors;
and (ix) reducing certain transfer agent fee rates.
Investment Performance
. The Board considered whether the fund has operated in accordance with its investment objective, as well as its record of
compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's
relative investment performance for each class measured over multiple periods against (i) a broad-based securities market index, and (ii) a peer
group of mutual funds deemed appropriate by Fidelity and reviewed by the Board. The following charts considered by the Board show, over the
one-, three-, and five-year periods ended December 31, 2011, the cumulative total returns of the retail class and Class C of the fund, the cumulative
total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a peer group of mutual funds
identified by Lipper Inc. as having an investment objective similar to that of the fund. The returns of the retail class and Class C show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th
percentile return (top of box) and the 75th percentile return (bottom of box) of the peer group. Returns shown above the box are in the first
quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the
percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity New York Municipal Income Fund
The Board reviewed the fund's relative investment performance against its peer group and noted that the performance of the retail class of the
fund was in the third quartile for the one-year period, the fourth quartile for the three-year period, and the first quartile for the five-year period.
The Board also noted that the investment performance of the fund was lower than its benchmark for all the periods shown. The Board considered
that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher
expense classes. The Board discussed with FMR actions to improve the fund's disappointing performance. The Board noted that this fund had
underperformed in the past and discussed with FMR its disappointment with the continued underperformance of the fund. The Board also reviewed the fund's performance since inception as well as performance in the current year. The Board noted that there was a portfolio management
change for the fund in December 2011. The Board will continue to closely monitor the performance of the fund in the coming year and discuss with
FMR other appropriate actions to address the performance of the fund.
Annual Report
Based on its review, the Board concluded that the nature, extent, and quality of services provided to the fund under the Advisory Contracts should
benefit the fund's shareholders.
Competitiveness of Management Fee and Total Expense Ratio.
The Board considered the fund's management fee and total expense ratio
compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective
categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management
fee and total expense ratio comparisons by broadening the competitive group used for comparison and by reducing the number of universes to
which various Fidelity funds are compared.
Management Fee
. The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The
group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group" and, for the reasons
explained above, is broader than the Lipper peer group used by the Board for performance comparisons. The Total Mapped Group comparison
focuses on a fund's standing relative to the total universe of comparable funds available to investors in terms of gross management fees before
expense reimbursements or caps. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were
lower than the fund's. For example, a TMG % of 7% means that 93% of the funds in the Total Mapped Group had higher management fees than the
fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within
the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management
fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the
ASPG quartile in which the fund's management fee ranked, is also included in the chart and considered by the Board.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
Fidelity New York Municipal Income Fund
The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2011.
Based on its review, the Board concluded that the fund's management fee is fair and reasonable in light of the services that the fund receives and the
other factors considered.
Total Expense Ratio
. In its review of each class's total expense ratio, the Board considered the fund's management fee as well as other fund or class
expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The
Board also noted the effects of any waivers and reimbursements on fees and expenses. As part of its review, the Board also considered the current
and historical total expense ratios of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to
those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.
The Board noted that the total expense ratio of each of Class A, Class T, Class B, Institutional Class, and the retail class ranked below its competitive median for 2011 and the total expense ratio of Class C ranked above its competitive median for 2011. The Board considered that various
factors, including 12b-1 fees and relatively higher other expenses in the case of small fund size, can affect total expense ratios. The Board noted
that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended
to offer a range of pricing options for the intermediary market. The Board also noted that the total expense ratios of the classes vary primarily by
the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.
Annual Report
Fees Charged to Other Fidelity Clients
. The Board also considered Fidelity fee structures and other information with respect to clients of FMR and
its affiliates, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients. The
Board noted the findings of the 2010 ad hoc joint committee (created with the board of other Fidelity funds), which reviewed and compared
Fidelity's institutional investment advisory business with its business of providing services to the Fidelity funds, including the differences in
services provided, fees charged, and costs incurred, as well as competition in their respective marketplaces.
Based on its review of total expense ratios and fees charged to other Fidelity clients, the Board concluded that the total expense ratio of each class of
the fund was reasonable, although Class C was above the median of the universe presented for comparison, in light of the services that the fund and its
shareholders receive and the other factors considered.
Costs of the Services and Profitability.
The Board considered 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. The Board also considered
the level of Fidelity's profits in respect of all the Fidelity funds.
On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as
aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which
originate with the books and records of Fidelity on which Fidelity's audited financial statements are based. The Audit Committee of the Board
reviews any significant changes from the prior year's methodologies.
PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been
engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and
assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After
considering PwC's reports issued under the engagement and information provided by Fidelity, the Board concluded that while other allocation
methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.
The Board also reviewed Fidelity's non-fund businesses and fall-out benefits related to the mutual fund business as well as cases where Fidelity's
affiliates may benefit from or be related to the fund's business.
Annual Report
Board Approval of Investment Advisory Contracts and
Management Fees - continued
The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and was
satisfied that the profitability was not excessive in the circumstances.
Economies of Scale.
The Board considered 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. The Board considered the extent to which the fund will benefit from economies of scale through
increased services to the fund, through waivers or reimbursements, or through fee or expense reductions. The Board also noted that in 2009, it and
the board of other Fidelity funds created an ad hoc committee (the Economies of Scale Committee) to analyze whether FMR attains economies of
scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.
The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total
fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR
calculates the group fee rates based on a tiered asset "breakpoint" schedule that varies based on asset class. The Board considered that the group
fee is designed to deliver the benefits of economies of scale to fund shareholders when total Fidelity fund assets increase, even if assets of any
particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds,
and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders
will benefit from lower management fees as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity
achieves any such economies of scale.
The Board concluded, taking into account the analysis of the Economies of Scale Committee, that economies of scale, if any, are being appropriately shared between fund shareholders and Fidelity.
Additional Information Requested by the Board.
In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory
Contracts, the Board requested and received additional information on certain topics, including: (i) Fidelity's fund profitability methodology,
profitability trends for certain funds, and the impact of certain factors on fund profitability results; (ii) portfolio manager changes that have
occurred during the past year and the amount of the investment that each portfolio manager has made in the Fidelity fund(s) that he or she
manages; (iii) Fidelity's compensation structure for portfolio managers, research analysts, and other key personnel, including its effects on fund
profitability, the rationale for the compensation structure, and the extent to which current market conditions have affected retention and recruitment; (iv) the compensation paid to fund sub-advisers on behalf of the Fidelity funds; (v) Fidelity's fee structures, including the group fee structure, and the rationale for recommending different fees among different categories of funds and classes; (vi) Fidelity's voluntary waiver of its fees
to maintain minimum yields for certain money market funds and classes as well as contractual waivers in place for certain funds; (vii) regulatory
and industry developments, including those affecting money market funds and target date funds, and the potential impact to Fidelity; (viii) Fidelity's transfer agent fees, expenses, and services, and drivers for determining the transfer agent fee structure of different funds and classes;
(ix) management fee rates charged by FMR or Fidelity entities to other Fidelity clients; (x) the allocation of and historical trends in Fidelity's
realization of fall-out benefits; and (xi) explanations regarding the relative total expense ratios of certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expense ratios for certain funds and classes or to achieve further economies of
scale.
Annual Report
Based on its evaluation of all of the conclusions noted above, and after considering all factors it believed relevant, the Board ultimately concluded
that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.
Annual Report
Investment Adviser
Fidelity Management & Research
Company
Boston, MA
Investment Sub-Advisers
Fidelity Investments
Money Management, Inc.
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Hong Kong) Limited
Fidelity Management & Research
(Japan) Inc.
General Distributor
Fidelity Distributors Corporation
Smithfield, RI
Transfer and Service Agents
Citibank, N.A.
New York, NY
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
Fidelity Service Company, Inc.
Boston, MA
Custodian
Citibank, N.A.
New York, NY
The Fidelity Telephone Connection
Mutual Fund 24-Hour Service
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Fidelity Automated Service
Telephone (FAST)
1-800-544-5555
Automated line for quickest service
(Fidelity Investment logo)(registered trademark)
Corporate Headquarters
245 Summer., Boston, MA 02210
www.fidelity.com
NFY-UANN-0313
1.789711.110
(Fidelity Investment logo)(registered trademark)
Fidelity Advisor
®
New York Municipal Income
Fund - Class A, Class T, Class B
and Class C
Annual Report
January 31, 2013
(Fidelity Cover Art)
Class A, Class T, Class B, and Class C are classes of Fidelity
®
New York Municipal Income Fund
Contents
|
Performance
|
(Click
Here)
|
How the fund has done over time.
|
|
Management's Discussion of Fund
Performance
|
(Click
Here)
|
The Portfolio Manager's review of fund performance and strategy.
|
|
Shareholder Expense Example
|
(Click
Here)
|
An example of shareholder expenses.
|
|
Investment Changes
|
(Click
Here)
|
A summary of major shifts in the fund's investments over the past six
months.
|
|
Investments
|
(Click
Here)
|
A complete list of the fund's investments with their market values.
|
|
Financial Statements
|
(Click
Here)
|
Statements of assets and liabilities, operations, and changes in net
assets,
as well as financial highlights.
|
|
Notes
|
(Click
Here)
|
Notes to the financial statements.
|
|
Report of Independent Registered Public
Accounting Firm
|
(Click
Here)
|
|
|
Trustees and Officers
|
(Click
Here)
|
|
|
Distributions
|
(Click
Here)
|
|
|
Board Approval of Investment Advisory
Contracts and Management Fees
|
(Click
Here)
|
|
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit
the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-877-208-0098 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 LLC or an affiliated company. © 2013 FMR LLC. All
rights reserved.
Annual Report
This report and the financial statements contained herein are submitted for the general information
of the shareholders of the fund. This report is not authorized for distribution to prospective investors
in the fund 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 holdings listing, semiannual report, or annual report on Fidelity's web site at
http://www.fidelity.com, http://www.advisor.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED • MAY LOSE VALUE • NO BANK GUARANTEE
Neither the fund nor Fidelity Distributors Corporation is a bank.
Annual Report
Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' distributions from dividend
income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions
or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow. Returns reflect the conversion of Class B
shares to Class A shares after a maximum of seven years.
Average Annual Total Returns
|
Periods ended January 31, 2013
|
Past 1
year
|
Past 5
years
|
Past 10
years
|
|
Class A (incl. 4.00% sales charge)
A
|
-0.02%
|
4.16%
|
4.21%
|
|
Class T (incl. 4.00% sales charge)
|
0.03%
|
4.19%
|
4.20%
|
|
Class B (incl. contingent deferred sales charge)
B
|
-1.49%
|
3.99%
|
4.11%
|
|
Class C (incl. contingent deferred sales charge)
C
|
2.35%
|
4.21%
|
3.80%
|
A
As of April 1, 2007, Class A shares bear a 0.25% 12b-1 fee. Returns between August 1, 2002 and March 31, 2007 reflect a 0.15% 12b-1 fee. Had Class A shares' current
12b-1 fee been reflected, returns prior to April 1, 2007 would have been lower.
B
Class B shares' contingent deferred sales charges included in the past one year, past five years, and past ten years total return figures are 5%, 2%, and 0%,
respectively.
C
Class C shares' contingent deferred sales charges included in the past one year, past five years, and past ten years total return figures are 1%, 0%, and 0%, respectively.
Annual Report
$10,000 Over 10 Years
Let's say hypothetically that $10,000 was invested in Fidelity Advisor® New York Municipal Income Fund - Class A on January 31, 2003, and the
current 4.00% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the
Barclays® Municipal Bond Index performed over the same period. The initial offering of Class A took place on August 1, 2002. See the previous
page for additional information regarding the performance of Class A.
Annual Report