-----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, dHMv/zLXveIwFGOcW+CoEBmQZfLl9qIXuI/X6I+sYo3ibXgJUGq9PpyXny/xs6gR 8lXQaFor0e/Rv6I1XKpFRQ== 0000028540-94-000004.txt : 19940309 0000028540-94-000004.hdr.sgml : 19940309 ACCESSION NUMBER: 0000028540-94-000004 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940131 FILED AS OF DATE: 19940308 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: 40 SEC FILE NUMBER: 811-03480 FILM NUMBER: 94515035 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 DAILY MONEY FUND SEMIANNUAL REPORT JANUARY 31, 1994 DAILY MONEY FUND: 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) BANKERS' ACCEPTANCES - 3.6% DOMESTIC BANKERS ACCEPTANCE - 1.3% Trust Company Bank 2/7/94 3.08% $ 20,000,000 $ 19,989,766 8982769C NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 2.3% Mitsubishi Bank, Ltd. 2/16/94 3.11 2,000,000 1,997,416 610998US Sakura Bank, Ltd. 2/9/94 3.26 10,000,000 9,992,777 793999KA 2/15/94 3.26 12,000,000 11,984,833 793999KC Sanwa Bank, Ltd. 2/9/94 3.11 4,600,000 4,596,831 804999MB 2/17/94 3.11 5,650,000 5,642,216 804999MD 34,214,073 TOTAL BANKERS' ACCEPTANCES 54,203,839 CERTIFICATES OF DEPOSIT - 31.2% NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 22.5% Bank of Tokyo 2/11/94 3.44 10,000,000 10,000,000 0659932T Canadian Imperial Bank of Commerce 4/4/94 3.27 25,000,000 25,000,000 136990EB 4/5/94 3.27 25,000,000 25,000,000 136990EC Credit Suisse 6/1/94 3.31 40,000,000 40,041,468 225991BS Fuji Bank, Ltd. 2/4/94 3.10 10,000,000 10,000,260 35999DHR 3/7/94 3.25 25,000,000 25,000,000 35999DHL Industrial Bank of Japan, Ltd. 2/15/94 3.10 50,000,000 50,000,000 4559905V 2/22/94 3.10 10,000,000 10,000,000 4559905U Lloyds Bank PLC 2/28/94 3.35 17,000,000 16,999,961 539991AF Societe Generale 3/4/94 3.41 10,000,000 9,998,494 833991SJ 4/18/94 3.41 5,000,000 4,999,641 833991SP 4/25/94 3.43 50,000,000 50,000,000 833991SK 5/17/94 3.48 3,000,000 2,999,595 833991SL Sumitomo Bank, Ltd. 2/24/94 3.45 10,000,000 10,000,000 86699EBL 2/28/94 3.10 30,000,000 30,000,000 86699ECH 2/28/94 3.10 18,000,000 18,000,000 86699ECK 338,039,419 LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 8.7% ABN-AMRO Bank 2/3/94 3.37% $ 5,000,000 $ 5,000,000 032993KM 3/31/94 3.36 15,000,000 14,999,978 032993KL 2/23/94 3.35 25,000,000 25,000,090 032993KN 2/23/94 3.36 20,000,000 19,999,962 032993KK Abbey National PLC, UK 2/28/94 3.37 25,000,000 25,000,145 007994GM Lloyds Bank PLC 4/12/94 3.37 15,000,000 14,994,607 539991AG Rabobank Nederland, N.V. 3/28/94 3.36 15,000,000 14,996,670 216992JC Sumitomo Bank, Ltd. 2/7/94 3.10 10,000,000 10,000,209 86699ECF 129,991,661 TOTAL CERTIFICATES OF DEPOSIT 468,031,080 COMMERCIAL PAPER - 23.8% CIESCO, L.P. 2/16/94 3.10 25,000,000 24,967,813 177996LN Commerzbank U.S. Finance, Inc. 2/1/94 3.35 17,449,000 17,449,000 202995AP Corporate Receivables Corp. 2/3/94 3.08 2,000,000 1,999,658 220992CD Dresdner U.S. Finance Inc. 5/19/94 3.43 13,000,000 12,869,787 261998AC General Electric Capital Corporation 3/1/94 3.39 25,000,000 24,934,861 369998KP 3/10/94 3.37 (a) 25,000,000 25,000,000 369998LE 3/30/94 3.39 20,000,000 19,893,917 369998KW HYPO U.S. Finance 4/4/94 3.30 6,895,000 6,856,170 07299DAC 4/14/94 3.38 10,000,000 9,933,200 07299DAB Hanson Finance Corp. 2/9/94 3.25 40,000,000 39,971,289 41199AAL Kingdom of Denmark 2/14/94 3.39 70,000,000 69,915,825 249998AX Kredietbank, N.A. Finance Corporation 5/17/94 3.48 15,000,000 14,850,375 50099DAC 5/24/94 3.46 5,000,000 4,947,111 50099DAF Merck & Company, Inc. 5/27/94 3.40 15,000,000 14,839,479 5893319S New South Wales Treasury Corp. 2/2/94 3.38 15,000,000 14,998,604 648992AD 2/14/94 3.38 19,500,000 19,476,410 648992AE 2/23/94 3.43 5,000,000 4,989,611 648992AF 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 Principal Mutual Life Insurance Company 2/15/94 3.08% $ 10,000,000 $ 9,988,061 742992JF Texaco Inc. 2/17/94 3.11 10,000,000 9,986,222 920998LV USAA Capital Corporation 2/18/94 3.28 10,000,000 9,984,558 914992FM TOTAL COMMERCIAL PAPER 357,851,951 FEDERAL AGENCIES - 4.6% FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 2.0% 6/14/94 3.33 30,000,000 29,636,467 313993MB FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 1.6% 2/14/94 3.60 (a) 25,000,000 25,000,000 9931287F FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 1.0% 7/6/94 3.47 10,000,000 9,853,611 9931164R 7/20/94 3.47 5,295,000 5,210,486 9931167M 15,064,097 TOTAL FEDERAL AGENCIES 69,700,564 U.S. TREASURY OBLIGATIONS - 1.9% U.S. TREASURY BILLS 12/15/94 3.43 30,000,000 29,120,325 993134FU BANK NOTES - 0.7% PNC Bank, N.A. 4/19/94 3.30 10,000,000 9,997,424 69399EAD FOREIGN GOVERNMENT OBLIGATIONS (U.S. Dollars) - 4.6% Canadian Treasury Bills 5/26/94 3.42 20,000,000 19,787,200 136992ST 5/31/94 3.42 30,000,000 29,666,800 136992SQ 6/13/94 3.35 20,000,000 19,758,000 136992TM TOTAL FOREIGN GOVERNMENT OBLIGATIONS 69,212,000 SHORT-TERM NOTES (a) - 3.7% CSA Funding (A) 2/7/94 3.16 22,000,000 22,000,000 129993AD CSA Funding (B) 2/7/94 3.16 10,000,000 10,000,000 129993AC CSA Funding (C) 2/7/94 3.16 23,000,000 23,000,000 129993AE TOTAL SHORT-TERM NOTES 55,000,000 TIME DEPOSITS - 5.0% Dai-Ichi Kangyo Bank, Ltd. 2/22/94 3.13% $ 25,000,000 $ 25,000,000 2379984G Hong Kong & Shanghai Banking Corp. 2/1/94 3.25 50,000,000 50,000,000 4385609E TOTAL TIME DEPOSITS 75,000,000 MUNICIPAL SECURITIES - 4.8% Harris County Texas Health Facilities Authority 2/25/94 3.13 4,700,000 4,700,000 41415P9H Illinois Student Assistance 2/7/94 3.22 (a) 10,000,000 10,000,000 452281DD Louisiana Public Facilities Authority 2/25/94 3.13 47,200,000 47,200,000 5463969J New Orleans Aviation Board (MBIA Insured) 2/7/94 3.26 (a) 9,700,000 9,700,000 64763H9B TOTAL MUNICIPAL SECURITIES 71,600,000 MATURITY AMOUNT REPURCHASE AGREEMENTS - 16.1% With First Boston Corporation: At 3.10%, dated 1/12/94 due 2/10/94: U.S. Government Obligations (principal amount $31,304,907) 5.5% to 10.75%, 2/15/03 to 8/1/23 $ 30,074,917 30,000,000 At 3.10%, dated 1/12/94 due 2/16/94: U.S. Government Obligations (principal amount $41,705,658) 0% to 10.75%, 2/15/03 to 8/1/24 40,120,556 40,000,000 With Goldman, Sachs & Co.: At 3.17%, dated 1/5/94 due 2/2/94: U.S. Government Obligations (principal amount $25,598,611) 6.50% to 9%, 12/1/99 to 1/1/24 25,061,639 25,000,000 MATURITY VALUE AMOUNT (NOTE 1) REPURCHASE AGREEMENTS - CONTINUED With Goldman, Sachs & Co. - continued At 3.125%, dated 1/10/94 due 2/7/94: U.S. Government Obligations (principal amount $40,960,440) 6.50% to 9%, 12/1/99 to 1/1/24 $ 40,097,222 $ 40,000,000 With Shearson Lehman Government Securities: At 3.10%, dated 1/20/94 due 2/15/94: 65399ENMU.S. Government Obligations (principal amount $32,992,772) 6.50%, 10/15/23 31,983,447 31,912,000 In a joint trading account (U.S. Treasury Obligations) dated 1/31/94, due 2/1/94 (Note 2) At 3.19% 54,004,779 54,000,000 99799MSQAt 3.22% 20,653,846 20,652,000 99799MSU TOTAL REPURCHASE AGREEMENTS 241,564,000 TOTAL INVESTMENTS - 100% $ 1,501,281,183 Total Cost for Income Tax Purposes-$1,501,281,183 LEGEND: (a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. INCOME TAX INFORMATION: At July 31, 1993, the fund had a capital loss carryforward of approximately $65,000 of which $30,000 and $35,000 will expire on July 31, 2000 and 2001, respectively. 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 $241,564,000) (Notes 1 and 2) - See $ 1,501,281,183 accompanying schedule Interest receivable 3,848,241 Receivable from investment adviser for expense reductions (Note 5) 20,307 TOTAL ASSETS 1,505,149,731 LIABILITIES Payable for investments $ 54,120,325 purchased Share transactions in process 4,667,849 Dividends payable 243,158 Accrued management fee 603,707 Other payables and accrued expenses 245,405 TOTAL LIABILITIES 59,880,444 NET ASSETS $ 1,445,269,287 Net Assets consist of: Paid in capital $ 1,445,269,112 Accumulated net realized gain (loss) on investments 175 NET ASSETS, for 1,445,269,112 shares outstanding $ 1,445,269,287 NET ASSET VALUE, offering price and redemption price per share ($1,445,269,287 (divided by) 1,445,269,112 shares) $1.00
Statement of Operations DRAFT
Six Months Ended January 31, 1994 (Unaudited) INTEREST INCOME $ 24,178,244 EXPENSES Management fee (Note 4) $ 3,694,628 Transfer agent fees (Note 4) 904,215 Accounting fees and expenses (Note 4) 80,014 Non-interested trustees' compensation 4,725 Custodian fees and expenses 44,777 Registration fees 57,004 Audit 12,128 Legal 13,177 Miscellaneous 12,656 Total expenses before 4,823,324 reductions Expense reductions (Note 5) (20,307) 4,803,017 NET INTEREST INCOME 19,375,227 NET REALIZED GAIN (LOSS) ON 65,226 INVESTMENTS (NOTE 1) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 19,440,453
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 $ 19,375,227 $ 42,868,040 Net interest income Net realized gain (loss) on investments 65,226 (34,675) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 19,440,453 42,833,365 Dividends to shareholders from net interest income (19,375,227) (42,868,040) Share transactions at net asset value of $1.00 per share 4,715,418,507 8,652,766,139 Proceeds from sales of shares Reinvestment of dividends from net interest income 15,972,805 35,339,347 Cost of shares redeemed (4,737,590,141) (8,768,032,138) Net increase (decrease) in net assets and shares resulting from share transactions (6,198,829) (79,926,652) TOTAL INCREASE (DECREASE) IN NET ASSETS (6,133,603) (79,961,327) NET ASSETS Beginning of period 1,451,402,890 1,531,364,217 End of period $ 1,445,269,287 $ 1,451,402,890
Financial Highlights DRAFT
SIX MONTHS YEARS ENDED JULY 31, ENDED JANUARY 31, 1994 (UNAUDITED) 1993 1992 1991 1990 1989 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .013 .028 .041 .067 .080 .085 Net interest income Dividends from net interest income (.013) (.028) (.041) (.067) (.080) (.085) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN (dagger) 1.33% 2.82% 4.21% 6.90% 8.34% 8.81% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 1,445,269 $ 1,451,403 $ 1,531,364 $ 1,714,108 $ 1,349,670 $ 893,611 Ratio of expenses to average net assets (dagger)(dagger) .65%* .61% .59% .60% .61% .64% Ratio of expenses to average net assets before .65%* .61% .59% .60% .61% .73% expense reductions (dagger)(dagger) Ratio of net interest income to average 2.62%* 2.76% 4.19% 6.61% 7.99% 8.56% net assets
* 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 PERIOD SHOWN. (dagger)(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. DAILY MONEY FUND: U.S. TREASURY 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 - 49.6% U.S. TREASURY BILLS - 27.8% 2/3/94 3.30% $ 76,000,000 $ 75,986,278 99399HWL 4/7/94 3.35 33,500,000 33,304,025 99399HLF 4/21/94 3.18 200,000,000 198,626,277 99399H2P 4/28/94 3.23 20,000,000 19,848,067 99399H3C 5/5/94 3.21 26,000,000 25,791,112 99399HNJ 5/5/94 3.27 26,000,000 25,787,082 99399HNA 5/5/94 3.30 78,000,000 77,348,741 99399HPC 5/26/94 3.30 30,000,000 29,691,250 99399H6B 5/26/94 3.35 90,000,000 89,059,594 99399H5G 6/2/94 3.36 50,000,000 49,445,417 99399H5R 6/30/94 3.30 123,000,000 121,370,934 746,258,777 U.S. TREASURY NOTES - 21.8% 2/15/94 3.14 13,000,000 13,017,818 99399GGL 2/28/94 3.11 37,000,000 37,060,758 99399GHC 3/31/94 3.24 31,000,000 31,119,398 99399GJC 4/30/94 3.14 20,000,000 20,100,310 99399GGN 4/30/94 3.23 28,000,000 28,134,676 99399GFV 5/15/94 3.16 114,000,000 115,177,825 99399GGR 5/15/94 3.22 75,000,000 75,781,296 9931079W 5/31/94 3.20 21,000,000 21,123,228 99399GGM 7/15/94 3.16 50,000,000 51,073,428 993993DG 7/31/94 3.15 45,000,000 45,220,109 993993DF 7/31/94 3.20 23,000,000 23,106,203 9931079X 8/15/94 3.08 93,000,000 97,596,899 993993DE 8/15/94 3.15 25,000,000 25,475,61 993993CY3 583,987,561 TOTAL U.S. TREASURY OBLIGATIONS 1,330,246,338 Repurchase Agreements - 50.4% In a joint trading account (U.S. Treasury Obligations) dated 1/31/94, due 2/1/94 (Note 2) At 3.19% $ 1,313,116,205 $ 1,313,000,000 99799MSQ At 3.22% 37,653,366 37,650,000 99799MSU TOTAL REPURCHASE AGREEMENTS 1,350,650,000 TOTAL INVESTMENTS - 100% $ 2,680,896,338 Total Cost for Income Tax Purposes - $2,680,896,338 INCOME TAX INFORMATION: At July 31, 1993, the fund had a capital loss carryforward of approximately $44,000 which will expire on July 31, 2001. U.S. TREASURY PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities DRAFT
January 31, 1994 (Unaudited) ASSETS Investment in securities, at value (including repurchase agreements of $1,350,650,000) (Notes 1 and 2) - See $ 2,680,896,338 accompanying schedule Cash 5,567,740 Interest receivable 12,101,671 TOTAL ASSETS 2,698,565,749 LIABILITIES Dividends payable $ 2,242,848 Accrued management fee 1,188,240 Other payables and accrued expenses 262,484 TOTAL LIABILITIES 3,693,572 NET ASSETS $ 2,694,872,177 Net Assets consist of: Paid in capital $ 2,694,868,084 Accumulated net realized gain (loss) on investments 4,093 NET ASSETS, for 2,694,868,084 shares outstanding $ 2,694,872,177 NET ASSET VALUE, offering price and redemption price per share ($2,694,872,177 (divided by) 2,694,868,084 shares) $1.00
Statement of Operations DRAFT
Six Months Ended January 31, 1994 (Unaudited) INTEREST INCOME $ 46,089,025 EXPENSES Management fee (Note 4) $ 7,291,961 Transfer agent fees (Note 4) 906,181 Accounting fees and expenses (Note 4) 134,281 Non-interested trustees' compensation 9,383 Custodian fees and expenses 56,702 Registration fees 60,399 Audit 24,354 Legal 21,472 Miscellaneous 24,436 TOTAL EXPENSES 8,529,169 NET INTEREST INCOME 37,559,856 NET REALIZED GAIN (LOSS) ON (1,754) INVESTMENTS (NOTE 1) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 37,558,102
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 $ 37,559,856 $ 77,613,277 Net interest income Net realized gain (loss) on investments (1,754) (44,237) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 37,558,102 77,569,040 Dividends to shareholders from net interest income (37,559,856) (77,613,277) Share transactions at net asset value of $1.00 per share 7,120,277,850 13,719,270,587 Proceeds from sales of shares Reinvestment of dividends from net interest income 21,461,308 42,776,435 Cost of shares redeemed (7,396,035,729) (13,906,546,104) Net increase (decrease) in net assets and shares resulting from share transactions (254,296,571) (144,499,082) TOTAL INCREASE (DECREASE) IN NET ASSETS (254,298,325) (144,543,319) NET ASSETS Beginning of period 2,949,170,502 3,093,713,821 End of period $ 2,694,872,177 $ 2,949,170,502
Financial Highlights DRAFT
SIX MONTHS YEARS ENDED JULY 31, ENDED JANUARY 31, 1994 (UNAUDITED) 1993 1992 1991 1990 1989 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .013 .027 .042 .065 .079 .083 Net interest income Dividends from net interest income (.013) (.027) (.042) (.065) (.079) (.083) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN (dagger) 1.31% 2.78% 4.25% 6.69% 8.24% 8.64% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 2,694,872 $ 2,949,171 $ 3,093,714 $ 1,701,704 $ 1,177,290 $ 994,133 Ratio of expenses to average net assets .58%* .57% .59% .59% .59% .64% Ratio of expenses to average net assets before .58%* .57% .59% .59% .59% .64% expense reductions Ratio of net interest income to average 2.58%* 2.73% 4.14% 6.42% 7.91% 8.47% net assets
* ANNUALIZED (dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. NOTES TO FINANCIAL STATEMENTS FOR THE PERIOD ENDED JANUARY 31, 1994 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES. Money Market Portfolio and U.S. Treasury Portfolio (the funds) are funds of Daily Money Fund (the trust) and are 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. 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. 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 SEC), 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. 3. JOINT TRADING ACCOUNT. At the end of the period, the U.S. Treasury 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 $1,313,116,205 at 3.19% and $37,653,366 at 3.22%. The investments in repurchase agreements through the joint trading account are summarized as follows: 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 $3,338,295,424 $3,400,338,433 3.875%-12.375% 2/15/94-2/15/23 At 3.22% 3 41% 465,000,000 465,041,567 469,534,224 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, FMR or the funds' distributor, Fidelity Distributors Corporation (FDC), an affiliate of FMR, may use their resources to pay administrative and promotional expenses related to the sale of each fund's shares. Subject to the approval of the Board of Trustees, the Plans also authorize payments to third parties that assist in the sale of each fund's shares or render shareholder support services. FMR or FDC has informed the funds that payments made to third parties under the Plans amounted to $1,969,651 and $4,746,877 for the Money Market and U.S. Treasury funds, respectively, for the period. 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 FEE. Fidelity Investments Institutional Operations Company (FIIOC), an affiliate of FMR, is the funds' transfer, dividend disbursing and shareholder servicing agent. FIIOC receives fees based on the type, size, number of accounts and the number of transactions made by shareholders. FIIOC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. ACCOUNTING FEE. Fidelity Service Co., an affiliate of FMR, maintains the funds' accounting records. The fee is based on the level of average net assets for the month plus out-of-pocket expenses. 5. EXPENSE REDUCTIONS. FMR voluntarily agreed to reimburse the funds' operating expenses (excluding interest, taxes, brokerage commissions and extraordinary expenses) above an annual rate of .65% of average net assets. For the period, the reimbursement reduced the expenses of the Money Market fund by $20,307. 6. BENEFICIAL INTEREST. At the end of the period, 2 shareholders were each record owners of more than 10% of the total outstanding shares of the U. S. Treasury fund, totaling 48%. 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. This page is to be BLANK - do not strip-in this type or the BAR at top of page. Thank you 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 Gary L. French, TREASURER John H. Costello, ASSISTANT TREASURER Arthur S. Loring, SECRETARY David H. Potel, ASSISTANT SECRETARY 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 Fidelity Distributors Corporation Boston, MA TRANSFER AND SHAREHOLDER SERVICING AGENT Fidelity Investments Institutional Operations Company Boston, MA CUSTODIAN Morgan Guaranty Trust Company of New York New York, NY DMF-3-94S -----END PRIVACY-ENHANCED MESSAGE-----