-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, HREhGEcUfq4A5ahwrR75ssiUkeQ95oSTibi+cEmbsLjfPuw5MXiaMGfXeyVBXwsW 7S/Ba9iB2wLZSsvwgzEBBw== 0000028540-94-000015.txt : 19940715 0000028540-94-000015.hdr.sgml : 19940715 ACCESSION NUMBER: 0000028540-94-000015 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940131 FILED AS OF DATE: 19940712 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAILY MONEY FUND/MA/ CENTRAL INDEX KEY: 0000028540 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 042778694 STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-03480 FILM NUMBER: 94538570 BUSINESS ADDRESS: STREET 1: 82 DEVONSHIRE ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 2142816351 MAIL ADDRESS: STREET 1: P.O. BOX 650471 STREET 2: MAILZONE DW4B CITY: DALLAS STATE: TX ZIP: 75265-0471 FORMER COMPANY: FORMER CONFORMED NAME: DEVONSHIRE STREET FUND INC DATE OF NAME CHANGE: 19821213 N-30B-2 1 CAPITAL RESERVES SEMIANNUAL REPORT JANUARY 31, 1994 CAPITAL RESERVES: MONEY MARKET PORTFOLIO INVESTMENTS/JANUARY 31, 1994 (UNAUDITED) (Showing Percentage of Total Value of Investments) ANNUALIZED ANNUALIZED YIELD AT YIELD AT DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1) CERTIFICATES OF DEPOSIT - 24.5% DOMESTIC CERTIFICATES OF DEPOSIT - 0.8% Old Kent Bank & Trust Company 3/31/94 3.40% $ 5,000,000 $ 5,000,000 NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 18.2% Bayerische Landesbank Girozentrale 2/9/94 3.38 4,000,000 4,000,002 Fuji Bank, Ltd. 3/7/94 3.25 5,000,000 5,000,000 Kingdom of Sweden 3/23/94 3.08 (a) 24,000,000 24,000,000Mitsubishi Bank, Ltd. 5/13/94 3.25 5,000,000 5,000,985 7/7/94 3.45 10,000,000 10,000,000 National Bank of Canada 4/6/94 3.30 10,000,000 10,000,000 Sakura Bank, Ltd. 2/7/94 3.40 10,000,000 10,000,000 3/7/94 3.27 5,000,000 5,000,000 Sanwa Bank, Ltd. 7/29/94 3.33 5,000,000 5,000,243 Skandinaviska Enskilda Banken 2/17/94 3.39 5,000,000 5,000,000 Societe Generale 4/18/94 3.41 10,000,000 9,999,275 4/25/94 3.43 15,000,000 15,000,000 Sumitomo Bank, Ltd. 2/24/94 3.45 5,000,000 5,000,000 Swedish National Housing Finance Corp. (a) 2/23/94 3.50 7,000,000 7,000,000 120,000,505 NEW YORK BRANCH, EURODOLLAR, FOREIGN BANKS - 0.8% Sumitomo Bank, Ltd. 6/20/94 3.31 5,000,000 5,001,855 LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 4.7% Mitsubishi Bank, Ltd. 4/18/94 3.24 5,000,000 5,000,363 4/29/94 3.49 10,000,000 9,999,960 Sanwa Bank, Ltd. 2/24/94 3.42 6,000,000 6,000,028 Sumitomo Bank, Ltd. 5/23/94 3.28 10,000,000 10,004,321 31,004,672 TOTAL CERTIFICATES OF DEPOSIT 161,007,032 COMMERCIAL PAPER - 41.3% Bear Stearns Companies Inc. 2/18/94 3.37% $ 4,096,000 $ 4,089,520 3/9/94 3.35 5,000,000 4,983,400 BellAtlantic Financial Services 2/25/94 3.43 5,000,000 4,988,667 2/28/94 3.43 5,000,000 4,987,250 CIT Group Holdings, Inc. 3/24/94 3.38 10,000,000 9,952,542 3/30/94 3.59 10,000,000 9,944,583 CoreStates Capital Corp. 2/15/94 3.14 (a) 5,000,000 5,000,000 Ford Motor Credit Corporation 3/31/94 3.34 5,000,000 4,973,336 General Electric Capital Corporation 2/2/94 3.37 3,000,000 2,999,721 3/10/94 3.37 (a) 5,000,000 5,000,000 3/28/94 3.39 10,000,000 9,948,819 9/8/94 3.51 10,000,000 9,791,342 10/5/94 3.43 5,000,000 4,885,542 General Motors Acceptance Corporation 2/14/94 3.55 15,000,000 14,980,906 Goldman Sachs Group, L.P. (The) 3/11/94 3.40 10,000,000 9,964,481 Grand Metropolitan Finance 5/23/94 3.45 11,000,000 10,885,023 Hanson Finance 3/7/94 3.38 10,000,000 9,968,361 Kingdom of Denmark 2/10/94 3.38 18,000,000 17,985,015 Morgan Stanley Group, Inc. 2/22/94 3.42 10,000,000 9,980,225 2/28/94 3.38 10,000,000 9,974,875 NYNEX Corporation 2/14/94 3.40 3,000,000 2,996,349 2/22/94 3.38 15,000,000 14,970,688 3/7/94 3.36 10,000,000 9,968,550 Nationwide Building Society 2/1/94 3.47 25,000,000 25,000,000 New Center Asset Trust 2/28/94 3.40 5,000,000 4,987,325 3/7/94 3.41 5,000,000 4,984,039 3/8/94 3.41 5,000,000 4,983,569 New South Wales Treasury Corp. 3/8/94 3.39 8,000,000 7,973,867 ANNUALIZED ANNUALIZED YIELD AT YIELD AT DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1) COMMERCIAL PAPER - CONTINUED Norwest Corporation 3/28/94 3.39% $ 5,000,000 $ 4,974,410 Norwest Financial 3/2/94 3.38 10,000,000 9,973,014 Prudential Funding Corporation 2/14/94 3.36 10,000,000 9,988,084 Sears Credit Corp. B 2/23/94 3.13 5,000,000 4,990,467 TOTAL COMMERCIAL PAPER 271,073,970 FEDERAL AGENCIES - 4.3% FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 1.5% 6/16/94 3.37 10,000,000 9,997,033 FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 0.7% 11/25/94 3.46 5,000,000 4,861,400 INTERNATIONAL BANK OF RECONSTRUCTION AND DEVELOPMENT - DISCOUNT NOTES - 2.1% 12/23/94 3.52 13,880,000 13,452,706 Total Federal Agencies 28,311,139 U.S. TREASURY OBLIGATIONS - 4.3% U.S. Treasury Bills 5/26/94 3.35 13,000,000 12,864,150 12/15/94 3.39 10,000,000 9,709,857 12/15/94 3.62 5,000,000 4,846,123 Total U.S. Treasury Obligations 27,420,130 BANK NOTES - 1.5% Bank of New York 3/6/94 3.50 (a) 10,000,000 10,000,000 MEDIUM-TERM NOTES (a) - 7.8% Abbey National PLC, UK 6/24/94 3.17 1,000,000 1,000,000 Abbey National Treasury Service 9/30/94 3.37 26,000,000 26,000,000 Goldman Sachs Group, L.P. (The) 6/16/94 3.48% $ 6,000,000 $ 6,000,000 9/1/94 3.48 6,000,000 6,000,000 Norwest Corporation 3/15/94 3.38 7,000,000 7,000,000 Westdeutsche Landesbank Gironzentrale 1/11/95 3.56 5,000,000 5,004,016 TOTAL MEDIUM-TERM NOTES 51,004,016 SHORT-TERM NOTES (a) - 7.2% J.P. Morgan Securities 2/1/94 3.44 11,000,000 11,000,000 2/1/94 3.46 7,000,000 7,000,000 Norwest Corporation 2/1/94 3.11 4,000,000 4,000,000 SMM Trust Company (1993-A) (b) 3/18/94 3.36 9,000,000 9,000,000 SMM Trust Company (1993-D) (b) 4/28/94 3.30 4,000,000 4,000,000 SMM Trust Company (1993-F) (b) 2/15/94 3.52 12,000,000 12,000,000 TOTAL SHORT-TERM NOTES 47,000,000 FOREIGN GOVERNMENT OBLIGATIONS (UNITED STATES DOLLARS) - 3.0% CANADIAN TREASURY BILLS 5/26/94 3.42 20,000,000 19,787,200 TIME DEPOSITS - 1.5% Dai-Ichi Kangyo Bank, Ltd. 2/24/94 3.16 10,000,000 10,000,000 MUNICIPAL BONDS - 0.2% New Orleans Aviation Board (MBIA Insured) 2/7/94 3.26 (a) 1,600,000 1,600,000 MATURITY VALUE AMOUNT (NOTE 1) REPURCHASE AGREEMENTS - 4.4% With First Boston Corporation: At 3.10%, dated 1/11/94 due 2/1/94: U.S. Government Obligations (principal amount $10,295,885) 6.50% to 10.75%, 2/15/03 to 1/1/24 $ 10,018,083 $ 10,000,000 With Goldman, Sachs & Co.: At 3.10%, dated 1/14/94 due 2/7/94: U.S. Government Obligations (principal amount $3,863,926) 5.22% to 7%, 7/1/20 to 12/1/23 3,507,233 3,500,000 At 3.125%, dated 1/10/94 due 2/14/94: U.S. Government Obligations (principal amount $10,997,329) 5.22% to 7%, 7/1/20 to 12/1/23 10,030,382 10,000,000 In a joint trading account (U.S. Treasury Obligations) dated 1/31/94, due 2/1/94 (Note 2) At 3.20% 5,368,494 5,368,000 TOTAL REPURCHASE AGREEMENTS 28,868,000 TOTAL INVESTMENTS-100% $ 656,071,487 Total Cost for Income Tax Purposes - $656,071,487 LEGEND: (a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. (b) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (see Note 2 of Notes to Financial Statements). Additional information on each holding is as follows: ACQUISITION ACQUISITION SECURITY DATE COST SMM Trust Company: (1993-A) 3/18/93 $9,000,000 (1993-D) 10/21/93 $4,000,000 (1993-F) 11/15/93 $12,000,000 INCOME TAX INFORMATION: At July 31, 1993, the fund had a capital loss carryforward of approximately $8,000 which will expire on July 31, 2001. MONEY MARKET PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities DRAFT
January 31, 1994 (Unaudited) ASSETS Investment in securities, at value (including repurchase agreements of $28,868,000) (Notes 1 and 2) - $ 656,071,487 See accompanying schedule Cash 1,583,108 Interest receivable 1,511,305 Receivable from investment adviser for expense reductions (Note 5) 100,885 TOTAL ASSETS 659,266,785 LIABILITIES Dividends payable $ 92,802 Accrued management fee 290,653 Other payables and accrued expenses 400,734 TOTAL LIABILITIES 784,189 NET ASSETS $ 658,482,596 Net Assets consist of: Paid in capital $ 658,460,348 Accumulated net realized gain (loss) on investments 22,248 NET ASSETS, for 658,460,348 shares outstanding $ 658,482,596 NET ASSET VALUE, offering price and redemption price per share ($658,482,596 (divided by) 658,460,348 shares) $1.00
Statement of Operations DRAFT
Six Months Ended January 31, 1994 (Unaudited) INTEREST INCOME $ 10,618,069 EXPENSES Management fee (Note 4) $ 1,586,843 Transfer agent fees (Note 4) 794,441 Distribution fees (Note 4) 1,110,790 Accounting fees and expenses (Note 4) 48,452 Non-interested trustees' compensation 1,927 Custodian fees and expenses 32,424 Registration fees 79,306 Audit 6,271 Legal 4,783 Miscellaneous 4,721 Total expenses before 3,669,958 reductions Expense reductions (Note 5) (566,477) 3,103,481 NET INTEREST INCOME 7,514,588 NET REALIZED GAIN (LOSS) ON 17,896 INVESTMENTS (NOTE 1) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 7,532,484
Statement of Changes in Net Assets DRAFT
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1994 JULY 31, (UNAUDITED) 1993 INCREASE (DECREASE) IN NET ASSETS Operations $ 7,514,588 $ 11,181,033 Net interest income Net realized gain (loss) on investments 17,896 (8,089) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 7,532,484 11,172,944 Dividends to shareholders from net interest income (7,514,588) (11,181,033) Share transactions at net asset value of $1.00 per share 1,863,085,994 2,536,376,162 Proceeds from sales of shares Reinvestment of dividends from net interest income 6,736,544 10,067,106 Cost of shares redeemed (1,812,855,588) (2,299,126,791) Net increase (decrease) in net assets and shares resulting from share transactions 56,966,950 247,316,477 TOTAL INCREASE (DECREASE) IN NET ASSETS 56,984,846 247,308,388 NET ASSETS Beginning of period 601,497,750 354,189,362 End of period $ 658,482,596 $ 601,497,750
Financial Highlights DRAFT
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, ENDED 1990 JANUARY 31, (COMMENCEMENT 1994 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1993 1992 1991 SELECTED PER-SHARE DATA Net asset value, beginning of period$ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .012 .025 .041 .047 Net interest income Dividends from net interest income (.012) (.025) (.041) (.047) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN (dagger) 1.20% 2.57% 4.13% 4.79% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 658,483 $ 601,498 $ 354,189 $ 108,991 Ratio of expenses to average net assets (dagger)(dagger) .98%* .95% .82% .83%* Ratio of expenses to average net assets before expense reductions (dagger)(dagger) 1.16%* 1.14% 1.17% 1.25%* Ratio of net interest income to average net assets 2.37%* 2.52% 3.81% 5.71%*
* ANNUALIZED (dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. (dagger)(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO INVESTMENTS/JANUARY 31, 1994 (UNAUDITED) (Showing Percentage of Total Value of Investments) ANNUALIZED YIELD AT DUE TIME OF PRINCIPAL VALUE MATURITY VALUE DATE PURCHASE AMOUNT (NOTE 1) AMOUNT (NOTE 1) U.S. TREASURY OBLIGATIONS - 48.8% U.S. TREASURY BILLS - 27.7% 2/3/94 3.30% $ 7,000,000 $ 6,998,736 4/7/94 3.35 9,000,000 8,947,350 4/21/94 3.18 18,000,000 17,876,366 4/28/94 3.23 1,000,000 992,403 5/5/94 3.21 2,500,000 2,479,915 5/5/94 3.27 2,500,000 2,479,527 5/5/94 3.30 7,000,000 6,941,488 5/26/94 3.30 7,000,000 6,927,958 5/26/94 3.35 10,000,000 9,895,511 6/2/94 3.36 12,000,000 11,866,900 6/30/94 3.30 10,000,000 9,867,556 85,273,710 U.S. TREASURY NOTES - 21.1% 2/15/94 3.15 1,000,000 1,001,359 2/28/94 3.11 12,000,000 12,019,705 2/28/94 3.21 7,000,000 7,010,914 3/31/94 3.24 4,000,000 4,015,406 4/30/94 3.14 5,000,000 5,025,077 4/30/94 3.23 2,000,000 2,009,619 5/15/94 3.16 10,000,000 10,103,318 5/15/94 3.22 3,000,000 3,031,252 7/31/94 3.20 2,000,000 2,009,235 8/15/94 3.08 8,500,000 8,920,068 9/30/94 3.22 10,000,000 10,044,391 65,190,344 TOTAL U.S TREASURY OBLIGATIONS 150,464,054 REPURCHASE AGREEMENTS - 51.2% In a joint trading account (U.S. Treasury Obligations) dated 1/31/94, due 2/1/94 (Notes 2 and 3) At 3.19% $ 154,013,629 $ 154,000,000 At 3.22% 3,962,354 3,962,000 TOTAL REPURCHASE AGREEMENTS 157,962,000 TOTAL INVESTMENTS - 100% $ 308,426,054 Total Cost for Income Tax Purposes - $308,426,054 INCOME TAX INFORMATION: At July 31, 1993, the fund had a capital loss carryforward of approximately $5,500 which will expire on July 31, 2001. U.S. GOVERNMENT PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities DRAFT
January 31, 1994 (Unaudited) ASSETS Investment in securities, at value (including repurchase agreements of $157,962,000) (Notes 1 and 2) - $ 308,426,054 See accompanying schedule Interest receivable 1,483,599 Receivable from investment adviser for expense reductions (Note 5) 11,553 TOTAL ASSETS 309,921,206 LIABILITIES Dividends payable $ 106,230 Accrued management fee 129,036 Other payables and accrued expenses 135,512 TOTAL LIABILITIES 370,778 NET ASSETS $ 309,550,428 Net Assets consist of: Paid in capital $ 309,554,371 Accumulated net realized gain (loss) on investments (3,943) NET ASSETS, for 309,554,371 shares outstanding $ 309,550,428 NET ASSET VALUE, offering price and redemption price per share ($309,550,428 (divided by) 309,554,371 shares) $1.00
Statement of Operations DRAFT
Six Months Ended January 31, 1994 (Unaudited) INTEREST INCOME $ 4,832,976 EXPENSES Management fee (Note 4) $ 760,400 Transfer agent fees (Note 4) 146,729 Distribution fees (Note 4) 534,080 Accounting fees and expenses (Note 4) 26,395 Non-interested trustees' compensation 941 Custodian fees and expenses 16,189 Registration fees 73,200 Audit 7,160 Legal 2,412 Miscellaneous 2,132 Total expenses before 1,569,638 reductions Expense reductions (83,816) 1,485,822 (Note 5) NET INTEREST INCOME 3,347,154 NET REALIZED GAIN (LOSS) ON (187) INVESTMENTS (NOTE 1) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 3,346,967
Statement of Changes in Net Assets DRAFT
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1994 JULY 31, (UNAUDITED) 1993 INCREASE (DECREASE) IN NET ASSETS Operations $ 3,347,154 $ 6,429,830 Net interest income Net realized gain (loss) on investments (187) (5,505) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 3,346,967 6,424,325 Dividends to shareholders from net interest income (3,347,154) (6,429,830) Share transactions at net asset value of $1.00 per share 1,164,161,843 1,815,220,928 Proceeds from sales of shares Reinvestment of dividends from net interest income 2,776,206 5,539,936 Cost of shares redeemed (1,121,870,181) (1,864,814,792) Net increase (decrease) in net assets and shares resulting from share transactions 45,067,868 (44,053,928) TOTAL INCREASE (DECREASE) IN NET ASSETS 45,067,681 (44,059,433) NET ASSETS Beginning of period 264,482,747 308,542,180 End of period $ 309,550,428 $ 264,482,747
Financial Highlights DRAFT
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, ENDED 1990 JANUARY 31, (COMMENCEMENT 1994 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1993 1992 1991 SELECTED PER-SHARE DATA Net asset value, beginning of period$ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .011 .024 .041 .046 Net interest income Dividends from net interest income (.011) (.024) (.041) (.046) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN (dagger) 1.11% 2.40% 4.15% 4.66% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 309,550 $ 264,483 $ 308,542 $ 80,762 Ratio of expenses to average net assets (dagger)(dagger) .98%* .95% .65% .70%* Ratio of expenses to average net assets before expense reductions (dagger)(dagger) 1.03%* 1.07% 1.14% 1.27%* Ratio of net interest income to average net assets 2.20%* 2.39% 3.82% 5.65%*
* ANNUALIZED (dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. (dagger)(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO INVESTMENTS/JANUARY 31, 1994 (UNAUDITED) (Showing Percentage of Total Value of Investments) PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - 100% ARIZONA - 4.5% Mojave County Ind. Dev. Auth. Ind. Dev. Rev. (Citizens Utilities) Series 1993 E, 2.55% 4/18/94, VT (b) $ 2,360,000 $ 2,360,000 Student Loan Acquisition Auth. Student Loan Rev., Series 1993 A-1, 2.40%, (FSA Insured) SBPA Barclays Bank, VRDN (b) 945,000 945,000 Yavapai County Ind. Dev. Auth. Ind. Dev. Rev. (Citizens Utilities) Series 1993, 2.55%4/18/94, VT (b) 3,000,000 3,000,000 6,305,000 CALIFORNIA - 6.1% California Gen. Oblig. RAN, 3.50% 6/28/94 2,000,000 2,004,442 Oakland TRAN 3.50% 8/15/94 2,500,000 2,505,829 Orange County Apt. Dev. Rev. (Niguel Summit I) Issue 1985 U, Series A, 2.60%, LOC Tokai Bank, VRDN 1,000,000 1,000,000 Sacramento County TRAN, 3% 7/29/94 3,000,000 3,002,080 8,512,351 COLORADO - 8.6% Arapahoe County Capital Improv. Trust Hwy. Rev. Bonds (E-470 Proj.), OT: Series 1986 H, 2.95% 2/28/94 3,000,000 3,000,000 Series J, 2.85% 2/28/94 1,000,000 1,000,061 Denver County Airport Sys. Rev. Bonds Series 1992 F, 2.45%, LOC Bank of Montreal, VRDN (b) 5,500,000 5,500,000 Fort Collins County Ind. Dev. Rev. (Phelps-Tointon Millwork Proj.) Series 1993, 2.55%, LOC Bank One, VRDN (b) 1,500,000 1,500,000 Wheat Ridge County Ind. Dev. Rev. (Adolph Coors Co. Proj.), Series 1993, 2.55%, LOC Wachovia Bank Georgia, VRDN (b) 1,000,000 1,000,000 12,000,061 DISTRICT OF COLUMBIA - 0.5% Dist. of Columbia Hsg. Fin. Auth. Multi-Family Hsg. Rev. Rfdg., Series 1991, 2.50%, LOC Bank One, VRDN (b) 650,000 650,000 FLORIDA - 9.4% Broward County Ind. Dev. Auth. Rev. Rfdg. (Goldline Lab., Inc. Proj.) Series 1989 B, 2.80%, LOC Barnett Bank, VRDN (b) 279,000 279,000 Dade County Hsg. Fin. Corp. Tax-Exempt Trust Ctfs. of Prtn. Series 1991 A, 2.65%, (Liquidity Enhancement Bank One), VRDN (b) (c) 2,855,000 2,855,000Dade County Ind. Dev. Auth. Rev. (Guastafeste Proj.) Series 1987, 2.45%, LOC Sun Bank, VRDN (b) 300,000 300,000 Dade County Multi-Family Hsg. Rev. (Biscayne View Apts. Proj.) Series 1993, 2.60%, BPA Commonwealth Life Ins. Co., VRDN (b) 1,475,000 1,475,000 Florida Aviation Auth. Tax-Exempt Trust Ctfs, Series 1989 A, 2.75%, LOC NationsBank, VRDN (b) (c) 1,425,000 1,425,000 Indian Trace Commty. Dev. Dist. (Broward County Basin Wtr. Mgmt.), 3.20% 2/2/94, LOC Tokai Bank Ltd., VT 1,650,000 1,650,000 Martin Co. Ind. Dev. Auth. Ind. Dev. Rev. Series 1992 A, (Indiantown Cogeneration Proj.) 2.25% LOC Credit Suisse (b) 1,000,000 1,000,000 Miami TAN 3.25% 9/28/94 1,000,000 1,002,994 Okeechobee County Solid Wst. Rev. (Chambers Wst. Sys.) Series 1992, 2.50%, LOC Nations Bank, VRDN (b) 1,000,000 1,000,000 Orange Co. School Dist. TAN 3% 6/30/94 2,000,000 2,001,278 12,988,272 GEORGIA - 2.8% Floyd County Dev. Auth Ind. Rev. Bonds (Marglen Ind. Inc. Proj.), 2.45%, LOC Trust Co. Bank, VRDN (b) 2,000,000 2,000,000 Georgia Hsg. & Fin. Auth. Rev. (Home Ownership Opportunity Prog.) Series 1992 B, 2.75%, VRDN (b) 1,000,000 1,000,000 Hart County Ind. Dev. Rev. (Dundee Mills Inc. Proj.) Series 1990, 2.45%, LOC Trust Co. of Georgia, VRDN (b) 155,000 155,000 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED GEORGIA - CONTINUED Pierce County Ind. Dev. & Bldg. Auth. Rev. (American Egg Prods. Inc. Proj.) Series 1989, 2.45%, LOC Barclays Bank, VRDN (b) $ 170,000 $ 170,000 Rockdale County Ind. Dev. Rev. (Takahashi Works USA) Series 1990, 2.45%, LOC Sanwa Bank, VRDN (b) 500,000 500,000 3,825,000 ILLINOIS - 3.1% Chicago O'Hare Int'l. Arpt. Rev. (Northwest Orient Airlines), 2.55%, LOC Mitsubishi Bank, VRDN (b) 300,000 300,000 Illinois Dev. Fin. Auth. Ind. Dev. Rev. Bonds, VRDN: (b) (MTI Corp Proj.) Series 1989, 2.575%, LOC Industrial Bank of Japan 1,000,000 1,000,000 (Rich Prods. Corp. Proj.) Series 1993, 2.45%, LOC Trust Company Bank 800,000 800,000 Illinois Dev. Fin. Auth. Rev., VRDN: (b) (Kindlon Partners Proj.) 2.45%, LOC Lasalle Bank 1,000,000 1,000,000 (R.S. Anderson Co. Proj.) 2.50%, LOC Comerica Bank 200,000 200,000 Illinois Gen. Oblig. TRAN 3.50% 6/15/94 1,000,000 1,001,898 4,301,898 INDIANA - 0.4% Shelbyville Ind. Econ. Dev. Rev. (Nippisun Indiana Corp. Proj.) 2.60%, LOC Industrial Bank of Japan, VRDN (b) 500,000 500,000 IOWA - 0.6% Sioux City Hosp. Rev. Rfdg. Bonds (Sisters of Mercy Health Corp.) Oblig. Group) Series 1993, 3.10% 8/15/94 765,000 765,000 KENTUCKY - 1.4% Kentucky Higher Ed. Student Loan Auth., Series 1991 E, 2.75%, LOC Sumitomo Bank, VRDN (b) 2,000,000 2,000,000 LOUISIANA - 0.7% Louisiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds, Series 1992 B, 3.70% 6/2/94, MT (b) 1,000,000 1,000,000 MAINE - 0.5% Maine Fin. Auth. Econ. Dev. Rev. Series 1992, 2.50%, LOC Sumitomo Bank LTD, VRDN (b) 760,000 760,000 MARYLAND - 2.9% Maryland Commty. Dev. Admin. Dept. Hsg. & Commty. Dev. (Single Family Prog.), MT: (b) Series 1993 2nd, 2.80% 6/15/94 1,000,000 1,000,000 Series 1993 14th, 2.90% 11/2/94 1,000,000 1,000,000 Montgomery County Hsg. Opportunity Committee: (Draper Lane Apts.) 2.50%, (FGIC Insured), SBPA Sumitomo Bank, VRDN (b) 1,000,000 1,000,000 (Single Family Mtg.) Series 1993 B, 2.85% 11/1/94, MT 1,000,000 1,000,000 4,000,000 MASSACHUSETTS - 1.4% Massachusetts Gen. Oblig. Tender Option Bonds Series E, 2.50%, (Liquidity Enhancement Dai-Ichi Kangyo Bank), VRDN (c) 2,000,000 2,000,000 MICHIGAN - 2.2% Michigan Hsg. Dev. Auth. Multi-Family Hsg. Rev. Bonds Series 1988 A, 2.30% 2/28/94, LOC Sanwa Bank Ltd., VT (b) 1,935,000 1,935,000 Sterling Heights Econ. Dev. Corp. Ltd. Oblig. Rev. (Cherrywood Ctr. Assoc. Proj.), 2.45%, LOC Comerica Bank, VRDN (b) 1,100,000 1,100,000 3,035,000 MINNESOTA - 0.9% Anoka County Solid Waste Disp. (United Pwr. Assoc.-National Rural Utils.), Series 1988 A, 2.45% 3/24/94, VT (b) 1,300,000 1,300,000 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED NEVADA - 2.7% Clark County Ind. Dev. Rev. (Nevada Pwr. Co. Proj.) Series 1989 A, 2.85%, LOC Citibank, VRDN (b) $ 1,400,000 $ 1,400,000 Henderson Public Improv. Trust Hsg. (Victory Village Proj.), 3.20% 3/8/94, MT (b) 1,290,000 1,290,000 Washoe County Gas Fac. Rev. Bonds (Sierra Pacific Pwr. Co.) Series 1990, 2.40% 3/30/94, LOC Union Bank Switzerland, VT (b) 1,000,000 1,000,000 3,690,000 NORTH CAROLINA - 3.3% Johnston County Ind. Fac. Poll. Cont. Fin. Auth. Ind. Dev. Rev. (Kabivitrum Inc. Proj.), 2.85%, LOC Skandinaviska Enskilda Banken, VRDN 3,750,000 3,750,000 Piedmont Triad Arpt. Auth. Spl. Facs. Rev. (Triad Int'l. Maintenance Corp. Proj.) Series 1989, 2.55%, LOC Mellon Bank, VRDN (b) 900,000 900,000 4,650,000 OHIO - 4.0% Cleveland Public Pwr. Sys. Rev. BAN, Series 1993 B, 3.50% 8/1/94 1,000,000 1,002,023 Ohio Wtr. Dev. Auth. Poll. Contr. Facs. (Toledo Edison Co. Proj.), VT: (b) Series 1988 A, 2.50% 2/22/94, LOC Citibank 1,000,000 1,000,000 Series 1988 A, 2.50% 2/25/94, LOC Citibank 2,500,000 2,500,000 Student Loan Funding Corp. Rev., Series 1990 A-1, 2.70%, LOC Nat'l. Westminster, VRDN (b) 1,000,000 1,000,000 5,502,023 OKLAHOMA - 0.7% Southeastern Ind. Auth. Solid Wst. Disp. Rev. (Weyerhaeuser Co. Proj.) 2.48%, VRDN (b) 1,000,000 1,000,000 OREGON - 1.1% Klamath Falls Elec. Rev. Bonds (Salt Cave Hydroelec Proj.), Series D, 4.75% 5/1/94,MT 1,500,000 1,507,523 PENNSYLVANIA - 9.3% Bucks County Ind. Dev. Auth. Ind. Dev. (Double H Plastics Inc. Proj.) Series 1993, 2.80%, LOC Meridian Bank, NA, VRDN (b) 2,445,000 2,445,000 Carbon County Ind. Dev. Auth. Resource Recovery (Panther Creek Partners Proj.), VT: (b) Series B: 2.40% 3/8/94, LOC Nat'l Westminister 1,700,000 1,700,000 2.50% 4/7/94, LOC Nat'l Westminister 2,375,000 2,375,000 Northumberland County Ind. Dev. Auth Rev. (Foster Wheeler Carmel Proj.), VRDN: (b) Series 1987 A, 2.45%, LOC Union Bank of Switzerland 1,000,000 1,000,000 Series 1987 B, 2.45%, LOC Union Bank of Switzerland 200,000 200,000 Pennsylvania Econ. Dev. Fing. Auth. Ind. Dev. Rev. (ASK Foods, Inc.) Series A-1, 2.50%, LOC Pittsburgh Nat'l. Bank, VRDN (b) 585,000 585,000 Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN: (b) (Kaminski Lumber Proj.) Series 1989 A-6, 2.50%, LOC Pittsburgh Nat'l. Bank 950,000 950,000 (Port Erie Plastics Proj.) Series 1989 D-9, 2.50%, LOC Pittsburgh Nat'l. Bank 90,000 90,000 Philadelphia School Dist. Bonds Series B, 5.75% 7/1/94, (MBIA Insured) 1,500,000 1,517,643Philadelphia School Dist. TRAN, Series 1993-94, 3.625% 6/30/94 1,000,000 1,002,083 Philadelphia TRAN, Series D, 3.25% 6/15/94 LOC Pittsburgh Nat'l. Bank 1,000,000 1,001,787 12,866,513 RHODE ISLAND - 1.4% Cranston Gen. Oblig. BAN, 3.40% 7/15/94 1,000,000 1,001,766 Providence Pub. Parking (Washington Street Garage Proj.) Series 1991, 2.45%, LOC Credit Suisse, VRDN (b) 1,000,000 1,000,000 2,001,766 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED TENNESSEE - 5.4% Knox County Ind. Dev. Rev. (Rock-Tenn Converting CP Proj.) Series 1993, 2.45%, LOC Trust Company Bank, VRDN (b) $ 1,000,000 $ 1,000,000 Memphis Gen. Oblig. Arpt. Rev., Series 1987 D, 2.35%, LOC Industrial Bank of Japan, VRDN (b) 2,300,000 2,300,000 Morristown Ind. Dev. Rev., VRDN ): (b) (Lakeway Container Inc. Proj.) Series 1993, 2.60%, LOC First Tennessee Bank, NA 2,200,000 2,200,000 (Tuff Torq Corp. Proj.) Series 1989, 2.45%, LOC Bank of Tokyo 1,450,000 1,450,000 Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990, 2.45%, LOC Trust Co. of Georgia, VRDN (b) 585,000 585,000 7,535,000 TEXAS - 7.4% Brazos Higher Ed. Auth. Student Loan Rev.,Series 1993B-1, 2.8% 6/1/94 LOC Student Loan Mktg. Assoc., MT (b) 400,000 400,000 Brazos River Harbor Navigation Dist. of Brazoria County (Dow Chemical Proj.) Series 1988, 2.40% 3/8/94, VT (b) 1,000,000 1,000,000 Greater East Texas Higher Ed. Auth. Student Loan Rev., Series 1988 A, 2.30%, (AMBAC Insured) SBPA Citibank, VRDN (b) 300,000 300,000 Greater East Texas Higher Ed. Student Loan Rev. Bonds, Series 1991 A, 2.75% 5/1/94, LOC Student Loan Mktg. Assoc., MT (b) 1,000,000 1,000,000 Heart of Texas Hsg. Fin. Corp. Single Family Mtg. Rev. Rfdg., Series 1993 A, 3.038% 9/1/94, MT (b) 2,070,000 2,070,000 Panhandle Plains Higher Ed. Student Loan Rev. Bonds, Series 1991 A, 2.70% 6/1/94, LOC Student Loan Mktg. Assoc., MT (b) 2,000,000 2,000,000 Texas Gen. Oblig. TRAN, 3.25% 8/31/94 1,000,000 1,002,696 Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev. (Primecrest Ltd. Proj.), VRDN: (b) Series 1990 A, 2.70%, LOC Algemene Bank 300,000 300,000 Series 1990 B, 2.70%, LOC Algemene Bank 200,000 200,000 Waxahachie Ind. Dev. Auth. (Rock-Tenn Converting Co. Proj.) Series 1986, 2.45%, LOC Trust Co. of Georgia, VRDN (b) 2,000,000 2,000,000 10,272,696 UTAH - 4.6% Carbon County Solid Waste Disp. (East Carbon Proj.), Series 1991, 3.05% 5/1/94, (GIC Insured), MT 1,435,000 1,435,000 Tooele County Waste Rev. Bonds (Union Pacific Corp./USPCI Proj.), VT: (b) Series 1992 A: 2.35% 2/28/94 4,000,000 4,000,000 2.35% 3/8/94 1,000,000 1,000,000 6,435,000 VIRGINIA - 4.7% Richmond Redev. & Hsg. Auth. Rev. (Tobacco Row Proj.) Series 1989 B-1, 2.45%, VRDN (b) 2,500,000 2,500,000 Virginia Ed. Loan Auth. Rev. Bonds (Student Loan Prog.) Series 1993 H, 2.85% 2/24/94, MT 2,000,000 2,000,000 Virginia Hsg. Dev. Auth. Commonwealth Mtg. Rev., Series 93-E, 3.05% 8/10/94, MT 2,000,000 2,002,166 6,502,166 WASHINGTON - 7.4% Algona Econ. Dev. Corp. Ind. Rev. (Aitchison Family Partnership) Series 1992, 2.40%, LOC Wells Fargo Bank, VRDN (b) 2,770,000 2,770,000 Pierce County Econ. Dev. Corp. Ind. Dev. Rev. (Pacific N.W. Baking Co. Proj.) Series 1988, 2.30%, LOC Barclays Bank, VRDN (b) 2,000,000 2,000,000 Port Angeles Ind. Dev. Corp. (Daishowa America Proj.) Series 1991 2.50%, LOC Industrial Bank of Japan, VRDN (b) 200,000 200,000 Port of Grays Harbor Ind. Dev. Corp. Solid Waste Fac. Rev., (Pacific Veneer, Weyerhaueser Co.), 2.50%, VRDN 2,500,000 2,500,000 Port Longview Ind. Dev. Corp. (Weyerhaeuser Co. Proj.) Series 1993, 2.50%, VRDN 2,000,000 2,000,000 Washington Gen. Oblig. Bond, Series B, 2.60% 5/1/94 825,000 825,000 10,295,000 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED WEST VIRGINIA - 1.1% Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.) Series 1988, 2.65%, LOC Svenska Handelsbanken, VRDN (b) $ 1,500,000 $ 1,500,000 WISCONSIN - 0.9% Appleton Ind. Dev. Rev. (Pensar Corp. Proj.) Series 1993, 2.55%, LOC Bank One, VRDN (b) 1,200,000 1,200,000 TOTAL INVESTMENTS - 100% $ 138,900,269 Total Cost for Income Tax Purposes - $138,900,488 SECURITY TYPE ABBREVIATIONS: BAN - Bond Anticipation Notes CP - Commercial Paper FRDN - Floating Rate Demand Notes MT - Mandatory Tender OT - Optional Tender RAN - Revenue Anticipation Notes TAN - Tax Anticipation Notes TRAN - Tax & Revenue Anticipation Notes VRDN - Variable Rate Demand Notes VT - Variable Tender 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 (AMT securities). (c) Provides evidence of ownership in one or more underlying municipal bonds. INCOME TAX INFORMATION: At July 31, 1993, the fund had a capital loss carryforward of approximately $8,000 of which $200, $5,600 and $2,200 will expire on July 31, 1999, 2000, and 2001, respectively. MUNICIPAL MONEY MARKET PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities DRAFT
January 31, 1994 (Unaudited) ASSETS Investment in securities, at value (Note 1) - See accompanying schedule $ 138,900,269 Interest receivable 721,639 Receivable from investment adviser for expense reductions (Note 5) 5,830 TOTAL ASSETS 139,627,738 LIABILITIES Share transactions in process $ 5,506,355 Dividends payable 6,505 Accrued management fee 63,286 Other payables and accrued expenses 93,135 TOTAL LIABILITIES 5,669,281 NET ASSETS $ 133,958,457 Net Assets consist of: Paid in capital $ 133,968,771 Accumulated net realized gain (loss) on investments (10,314) NET ASSETS, for 133,968,771 shares outstanding $ 133,958,457 NET ASSET VALUE, offering price and redemption price per share ($133,958,457 (divided by) 133,968,771 shares) $1.00
Statement of Operations DRAFT
Six Months Ended January 31, 1994 (Unaudited) INTEREST INCOME $ 1,783,966 EXPENSES Management fee (Note 4) $ 327,860 Transfer agent, accounting and custodian fees and expenses (Note 4) 56,657 Distribution fees (Note 4) 228,571 Non-interested trustees' compensation 390 Registration fees 57,922 Audit 8,598 Legal 1,375 Miscellaneous 1,416 Total expenses before 682,789 reductions Expense reductions (41,675) 641,114 (Note 5) NET INTEREST INCOME 1,142,852 NET REALIZED GAIN (LOSS) ON (2,388) INVESTMENTS (NOTE 1) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,140,464
Statement of Changes in Net Assets DRAFT
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1994 JULY 31, (UNAUDITED) 1993 INCREASE (DECREASE) IN NET ASSETS Operations $ 1,142,852 $ 1,759,949 Net interest income Net realized gain (loss) on investments (2,388) (2,166) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,140,464 1,757,783 Dividends to shareholders from net interest income (1,142,852) (1,759,949) Share transactions at net asset value of $1.00 per share 235,136,665 364,076,414 Proceeds from sales of shares Reinvestment of dividends from net interest income 1,110,599 1,714,690 Cost of shares redeemed (218,560,330) (318,011,966) Net increase (decrease) in net assets and shares resulting from share transactions 17,686,934 47,779,138 TOTAL INCREASE (DECREASE) IN NET ASSETS 17,684,546 47,776,972 NET ASSETS Beginning of period 116,273,911 68,496,939 End of period $ 133,958,457 $ 116,273,911
Financial Highlights DRAFT
SIX MONTHS YEARS ENDED JULY 31, NOVEMBER 29, ENDED 1990 JANUARY 31, (COMMENCEMENT 1994 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1993 1992 1991 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .009 .019 .031 .028 Net interest income Dividends from net interest income (.009) (.019) (.031) (.028) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN (dagger) .88% 1.96% 3.14% 2.82% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 133,958 $ 116,274 $ 68,497 $ 19,578 Ratio of expenses to average net assets (dagger)(dagger) .98%* .95% .95% .95%* Ratio of expenses to average net assets before expense reductions (dagger)(dagger) 1.04%* 1.23% 1.40% 2.63%* Ratio of net interest income to average net assets 1.74%* 1.92% 2.89% 3.97%*
* ANNUALIZED (dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. (dagger)(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. NOTES TO FINANCIAL STATEMENTS FOR THE PERIOD ENDED JANUARY 31, 1994 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES. Capital Reserves: Money Market Portfolio, U.S. Government Portfolio, and Municipal Money Market Portfolio (the funds) are funds of Daily Money Fund (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 Massachusetts business trust. Each fund is authorized to issue an unlimited number of shares. At a special meeting of the shareholders of the funds held on March 24, 1993 shareholders approved an Agreement and Plan of Conversion and Termination (the Plan of Conversion), providing for the conversion of the funds from separate series of a Massachusetts business trust, to separate series of a Delaware business trust, effective September 29, 1993. The individual investment objective, policies and limitations of the funds remain the same. The following summarizes the significant accounting policies of the funds: SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and certain conditions therein, securities are valued initially at cost and thereafter assume a constant amortization to maturity of any discount or premium. INCOME TAXES. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, each fund is not subject to income taxes to the extent that it distributes all of its taxable income for the fiscal year. The schedules of investments include information regarding income taxes under the caption "Income Tax Information." INTEREST INCOME. Interest income, which includes amortization of premium and accretion of original issue discount, is accrued as earned. For the Municipal Money Market fund, accretion of market discount represents unrealized gain until realized at the time of a security disposition or maturity. EXPENSES. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned between the funds in the trust. DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid monthly from net interest income. SECURITY TRANSACTIONS. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 2. OPERATING POLICIES. REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery of the underlying securities, whose market value is required to be at least 102% of the resale price at the time of purchase. The funds' investment adviser, Fidelity Management & Research Company (FMR), is responsible for determining that the value of these underlying securities remains at least equal to the resale price. JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the funds, along with other registered investment companies having management contracts with FMR, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Federal Agency obligations. RESTRICTED SECURITIES. The Money Market and Municipal Money Market funds are permitted to invest in privately placed restricted securities. These securities 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. At the end of the period, restricted securities (excluding 144A issues) amounted to $25,000,000 or 4% of net assets for the Money Market fund. 3. JOINT TRADING ACCOUNT. At the end of the period, the U.S. Government fund had 20% or more of its total investments in repurchase agreements through a joint trading account. These repurchase agreements were with entities whose creditworthiness has been reviewed and found satisfactory by FMR. The repurchase agreements were dated January 31, 1994 and due February 1, 1994. The maturity values of the joint trading account investments were $154,013,629 at 3.19% and $3,962,354 at 3.22%, respectively. The investments in repurchase agreements through the joint trading account are summarized as follows: SUMMARY OF JOINT TRADING ACCOUNT MAXIMUM AMOUNT AGGREGATE AGGREGATE AGGREGATE NO. OF WITH ONE PRINCIPAL MATURITY MARKET COUPON MATURITY DEALERS DEALER AMOUNT OF AMOUNT OF VALUE OF RATES OF DATES OF OR BANKS OR BANK AGREEMENTS AGREEMENTS COLLATERAL COLLATERAL COLLATERAL At 3.19% 10 18% $3,338,000,000 $3,338,295,423 $3,400,338,433 3.875%-12.375% 2/15/94-2/15/23 At 3.22% 3 41 465,000,000 465,041,224 469,534,224 0%-11.25% 3/10/94-8/15/19 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. MANAGEMENT FEE. As each fund's investment adviser, FMR receives a fee that is computed daily at an annual rate of .50% of the fund's average net assets. SUB-ADVISER FEE. As each fund's investment sub-adviser, FMR Texas Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the management fee payable to FMR. The fees are paid prior to any voluntary expense reimbursements which may be in effect, and after reducing the fee for any payments by FMR pursuant to each fund's Distribution and Service Plan. DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, each fund is authorized to pay its distributor, National Financial Services Corporation (the Distributor), an affiliate of FMR, a monthly distribution fee at an annual rate of .35% of its average net assets. The Distributor may pay all or a portion of the fee to securities dealers or banks (Qualified Recipients) that have selling agreements with each fund. In addition, FMR may use its resources to pay Qualified Recipients who provide shareholder support or distribution services at a maximum annual rate of .25% of each fund's average net assets. Qualified Recipients, including the Distributor acting in the capacity of a Qualified Recipient, may at their discretion, retain any portion of their compensation and reallocate the balance to their correspondents. For the period, FMR made payments under the Plans in the amount of $566,875, $468,679 and $88,372 for the Money Market, U.S. Government and Municipal Money Market funds, respectively. In connection with the Plan of Conversion, a new Management Contract, new Sub-Advisory Agreement and new Distribution and Service Plan identical to those previously in effect, became effective on September 29, 1993. TRANSFER AGENT AND ACCOUNTING FEE. Fidelity Investments Institutional Operations Company (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for the Money Market and U.S. Government funds. United Missouri Bank N.A. (the Bank) is the custodian and transfer and shareholder servicing agent for the Municipal Money Market fund. The Bank has entered into a sub-contract with FIIOC to perform the activities associated with the Municipal Money Market fund's transfer and shareholder servicing agent functions. FIIOC receives fees based on the type, size, number of accounts and the number of transactions made by shareholders of each fund. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, FIIOC received transfer and shareholder servicing agent fees amounting to $28,832 for the Municipal Money Market fund. 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED Fidelity Service Co. (FSC), an affiliate of FMR, maintains the accounting records for the Money Market and U.S. Government funds. The Bank also has a sub-contract with FSC to maintain the Municipal Money Market fund's accounting records. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses. For the period, FSC received accounting fees amounting to $15,012 for the Municipal Money Market fund. 5. EXPENSE REDUCTIONS. FMR has voluntarily agreed to reimburse the funds for total operating expenses (excluding interest, taxes, brokerage commissions and extraordinary expenses) above an annual rate of .95% of average net assets. Effective October 1, 1993, this expense limitation was increased to .99% of average net assets. For the period, the reimbursement reduced expenses by $566,477, $83,816 and $41,675 for the Money Market, U.S. Government and Municipal Money Market funds, respectively. 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. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED BY THE FDIC. INVESTMENT ADVISER Fidelity Management & Research Company Boston, MA SUB-ADVISER FMR Texas Inc. Irving, TX OFFICERS Edward C. Johnson 3d, PRESIDENT J. Gary Burkhead, SENIOR VICE PRESIDENT Thomas D. Maher, ASSISTANT VICE PRESIDENT Gary L. French, TREASURER John H. Costello, ASSISTANT TREASURER Arthur S. Loring, SECRETARY BOARD OF TRUSTEES J. Gary Burkhead Ralph F. Cox Phyllis Burke Davis Richard J. Flynn Edward C. Johnson 3d E. Bradley Jones Donald J. Kirk Peter S. Lynch Edward H. Malone Marvin L. Mann Gerald C. McDonough Thomas R. Williams GENERAL DISTRIBUTOR National Financial Services Corporation Boston, MA TRANSFER AND SHAREHOLDER SERVICING AGENTS Fidelity Investments Institutional Operations Company Boston, MA United Missouri Bank, N.A. Kansas City, MO CUSTODIANS Morgan Guaranty Trust Company of New York New York, NY United Missouri Bank, N.A. Kansas City, MO CAPR-3-94S -----END PRIVACY-ENHANCED MESSAGE-----