-----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, scuzQPP/At4EPVT4RpIWrkmpn7T0p/mJJsfjJi21E+gkovGMTpYSDXOE3NlqDNuM XM+PlkN3gtBlKa53ANPwUw== 0000028540-95-000002.txt : 19950609 0000028540-95-000002.hdr.sgml : 19950609 ACCESSION NUMBER: 0000028540-95-000002 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19950131 FILED AS OF DATE: 19950306 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: DAILY MONEY FUND/MA/ CENTRAL INDEX KEY: 0000028540 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 042778694 STATE OF INCORPORATION: MA FISCAL YEAR END: 0731 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-03480 FILM NUMBER: 95518769 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-30D 1 FIDELITY U.S. TREASURY INCOME PORTFOLIO SEMIANNUAL REPORT JANUARY 31, 1995 FIDELITY U.S. TREASURY INCOME PORTFOLIO INVESTMENTS/JANUARY 31, 1995 (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) U.S. Treasury Obligations - 100.0% U.S. TREASURY BILLS - 66.5% 2/2/95 5.34% $ 9,161,000 $ 9,159,656 2/2/95 5.38 26,601,000 26,597,069 2/9/95 4.52 36,803,000 36,766,197 2/9/95 5.29 3,290,000 3,286,180 2/9/95 5.44 20,000,000 19,976,133 2/16/95 4.83 8,158,000 8,141,684 3/2/95 5.53 20,115,000 20,026,365 3/2/95 5.67 15,296,000 15,227,183 3/2/95 5.72 9,060,000 9,018,764 3/9/95 5.39 4,360,000 4,336,761 3/9/95 5.65 50,000,000 49,721,000 3/9/95 5.71 10,581,000 10,521,429 3/9/95 5.80 9,373,000 9,319,386 3/9/95 5.81 2,151,000 2,138,664 3/16/95 5.50 17,550,000 17,436,069 3/16/95 5.62 20,000,000 19,867,536 3/16/95 5.67 25,000,000 24,833,226 3/16/95 5.69 13,623,000 13,531,877 3/23/95 5.52 3,182,000 3,158,091 3/23/95 5.67 40,000,000 39,689,451 3/23/95 5.68 10,000,000 9,922,431 3/23/95 5.70 15,000,000 14,883,333 3/23/95 5.72 436,000 432,597 4/6/95 5.54 3,810,000 3,773,390 4/6/95 5.73 84,497,000 83,649,777 4/6/95 5.75 15,532,000 15,375,714 4/6/95 5.81 10,602,000 10,494,472 4/6/95 5.89 7,612,000 7,533,918 4/13/95 5.73 12,000,000 11,866,757 4/13/95 5.84 67,027,000 66,266,895 4/13/95 5.87 815,000 805,742 4/20/95 5.80 5,455,000 5,387,453 4/20/95 5.86 60,000,000 59,252,500 4/27/95 5.80 20,156,000 19,884,258 4/27/95 5.93 25,518,000 25,166,738 5/4/95 5.74 1,560,000 1,537,754 5/4/95 6.10 51,375,000 50,591,189 5/11/95 6.33 11,685,000 11,487,056 741,064,695 U.S. TREASURY NOTES - 33.5% 2/15/95 5.01% $ 18,600,000 $ 18,618,122 2/15/95 5.22 18,750,000 18,766,440 2/15/95 5.24 2,612,000 2,614,272 2/15/95 5.43 8,449,000 8,455,593 2/15/95 5.55 75,000,000 74,992,188 2/15/95 5.76 5,162,000 5,172,020 2/28/95 5.03 50,514,000 50,470,259 2/28/95 5.30 22,776,000 22,750,429 2/28/95 5.36 20,000,000 19,977,290 2/28/95 5.46 25,000,000 24,970,178 4/30/95 5.92 22,319,000 22,206,572 4/30/95 6.18 20,000,000 19,884,884 4/30/95 6.26 11,000,000 10,934,952 4/30/95 6.28 21,076,000 20,950,280 5/15/95 6.33 25,000,000 25,145,149 5/15/95 6.38 1,652,000 1,661,287 5/31/95 6.09 3,844,000 3,818,555 5/31/95 6.10 12,029,000 11,948,592 5/31/95 6.13 10,060,000 9,991,802 373,328,864 TOTAL INVESTMENTS - 100% $ 1,114,393,559 Total Cost for Income Tax Purposes - $1,114,393,559 INCOME TAX INFORMATION: At July 31, 1994, the fund had a capital loss carryforward of approximately $222,000 of which $60,000 and $162,000 will expire on July 31, 2001 and 2002, respectively. Statement of Assets and Liabilities
January 31, 1995 (Unaudited) ASSETS Investment in securities, at value - See accompanying schedule $ 1,114,393,559 Cash 207,880 Interest receivable 7,269,975 Receivable from investment adviser for expense 238,179 reductions TOTAL ASSETS 1,122,109,593 LIABILITIES Dividends payable $ 4,700,973 Accrued management fee 454,706 TOTAL LIABILITIES 5,155,679 NET ASSETS $ 1,116,953,914 Net Assets consist of: Paid in capital $ 1,116,923,217 Accumulated net realized gain (loss) on investments 30,697 NET ASSETS, for 1,116,923,217 shares outstanding $ 1,116,953,914 NET ASSET VALUE, offering price and redemption price per share ($1,116,953,914 (divided by) 1,116,923,217 $1.00 shares)
Statement of Operations
Six Months Ended January 31, 1995 (Unaudited) INTEREST INCOME $ 29,506,867 EXPENSES Management fee $ 2,476,265 Non-interested trustees' compensation 2,928 Total expenses before 2,479,193 reductions Expense reductions (1,298,625) 1,180,568 NET INTEREST INCOME 28,326,299 NET REALIZED GAIN (LOSS) ON 50,345 INVESTMENTS NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 28,376,644
Statement of Changes in Net Assets
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1995 JULY 31, (UNAUDITED) 1994 INCREASE (DECREASE) IN NET ASSETS Operations $ 28,326,299 $ 36,180,457 Net interest income Net realized gain (loss) 50,345 (162,127) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 28,376,644 36,018,330 Dividends to shareholders from net interest income (28,326,299) (36,180,457) Share transactions at net asset value of $1.00 per share 2,572,766,932 4,258,629,047 Proceeds from sales of shares Reinvestment of dividends from net interest income 6,332,458 9,408,877 Cost of shares redeemed (2,511,365,437) (4,266,497,201) Net increase (decrease) in net assets and shares resulting from share transactions 67,733,953 1,540,723 TOTAL INCREASE (DECREASE) IN NET ASSETS 67,784,298 1,378,596 NET ASSETS Beginning of period 1,049,169,616 1,047,791,020 End of period $ 1,116,953,914 $ 1,049,169,616
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 3, 1990 ENDED (COMMENCEMENT JANUARY 31, 1995 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1994 1993 1992 1991 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .024 .032 .031 .045 .055 Net interest income Less Distributions (.024) (.032) (.031) (.045) (.055) From net interest income Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 2.43% 3.27% 3.10% 4.64% 5.63% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted)$ 1,116,954 $ 1,049,170 $ 1,047,791 $ 1,197,559 $ 705,543 Ratio of expenses to average net assets C .20%A .20% .20% .20% .03%A Ratio of expenses to average net assets before .42%A .42% .42% .42% .42%A expense reductions C Ratio of net interest income to average net assets 4.80%A 3.22% 3.05% 4.43% 6.34%A
A ANNUALIZED B 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. C SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS. NOTES TO FINANCIAL STATEMENTS FOR THE PERIOD ENDED JANUARY 31, 1995 (UNAUDITED) 1. SIGNIFICANT ACCOUNTING POLICIES. Fidelity U.S. Treasury Income Portfolio (the fund) is a fund of Daily Money Fund (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 Delaware business trust. The following summarizes the significant accounting policies of the fund: 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, the fund is not subject to income taxes to the extent that it distributes all of its taxable income for its fiscal year. The schedule of investments includes 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. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management & Research Company (FMR) pays all expenses, except the compensation of the non-interested Trustees and certain exceptions such as interest, taxes, brokerage commissions and extraordinary expenses. FMR receives a fee that is computed daily at an annual rate of .42% of the fund's average net assets. SUB-ADVISER FEE. As the 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 fee is paid prior to any voluntary expense reimbursements which may be in effect, and after reducing the fee for any payments by FMR pursuant to the fund's Distribution and Service Plan. 3. EXPENSE REDUCTIONS. FMR voluntarily agreed to reimburse the fund's operating expenses (excluding interest, taxes, brokerage commissions and extraordinary expenses) above an annual rate of .20% of average net assets. For the period, the reimbursement reduced the expenses by $1,298,625. 4. 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 fund, totaling 46%. 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. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. 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 Leland Barron, VICE PRESIDENT Fred L. Henning, VICE PRESIDENT Thomas D. Maher, ASSISTANT VICE PRESIDENT Arthur S. Loring, SECRETARY Stephen P. Jonas, TREASURER John H. Costello, ASSISTANT TREASURER Leonard M. Rush, ASSISTANT TREASURER 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 FUST-3-95S DAILY MONEY FUND SEMIANNUAL REPORT JANUARY 31, 1995 DAILY MONEY FUND: MONEY MARKET PORTFOLIO INVESTMENTS/JANUARY 31, 1995 (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 - 3.8% DOMESTIC BANKERS' ACCEPTANCES - 2.2% Chase Manhattan Bank 2/6/95 5.74% $ 22,200,000 $ 22,182,363 2/9/95 5.75 3,200,000 3,195,932 Morgan Bank (Delaware) 2/7/95 6.10 20,000,000 19,979,833 45,358,128 NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.6% Barclays Bank, PLC 3/13/95 5.35 8,000,000 7,953,689 Dai-Ichi Kangyo Bank, Ltd. 2/6/95 5.81 11,900,000 11,890,447 2/6/95 6.26 10,000,000 9,991,389 Rabobank Nederland, N.V. 2/9/95 5.72 2,900,000 2,896,327 32,731,852 TOTAL BANKERS' ACCEPTANCES 78,089,980 Certificates of Deposit - 16.1% NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS Bank of Montreal 2/15/95 5.82 25,000,000 25,000,000 Bayerische Landesbank Girozentrale 2/3/95 5.82 50,000,000 50,000,000 Caisse Nationale de Credit Agricole 4/28/95 5.91 10,000,000 9,998,451 Canadian Imperial Bank of Commerce 2/17/95 5.77 25,000,000 25,000,000 Commerzbank, Germany 4/7/95 5.75 10,000,000 10,000,492 4/14/95 5.73 20,000,000 20,000,000 Rabobank Nederland, N.V. 2/1/95 5.84 5,000,000 5,000,000 3/7/95 5.20 25,000,000 24,999,770 Sanwa Bank, Ltd. 2/17/95 5.90 6,000,000 5,999,640 2/27/95 6.00 10,000,000 10,000,144 Societe Generale 2/6/95 5.75 25,000,000 25,000,000 3/1/95 6.00 25,000,000 25,000,000 3/17/95 5.93 30,000,000 30,000,000 4/5/95 5.80 10,000,000 10,000,000 Swiss Bank Corp. 3/6/95 6.32 25,000,000 25,000,000 3/27/95 5.63 25,000,000 25,000,000 TOTAL CERTIFICATES OF DEPOSIT 325,998,497 Commercial Paper - 47.9% Abbey National Treasury Services 5/9/95 6.02% $ 13,000,000 $ 12,795,088 Associates Corp. of North America 2/27/95 6.03 25,000,000 24,891,667 3/2/95 6.08 20,000,000 19,902,528 B.B.V. Finance (Delaware), Inc. 2/27/95 6.03 25,500,000 25,389,500 BHF Finance (Delaware), Inc. 2/7/95 5.81 25,000,000 24,975,833 2/8/95 5.67 25,000,000 24,972,535 BP America, Inc. 2/16/95 5.68 35,000,000 34,917,604Bank of New York Company, Inc. 2/1/95 5.85 15,000,000 15,000,000 Bayerische Vereinsbank A.G. 4/12/95 5.70 20,000,000 19,784,167 Caisse Nationale des Telecommunications 3/6/95 6.33 9,000,000 8,948,603 Canadian Wheat Board 2/2/95 6.00 4,800,000 4,799,200 2/10/95 5.23 15,000,000 14,980,875 4/25/95 5.86 5,000,000 4,934,407 Commerzbank U.S. Finance, Inc. 2/7/95 5.62 10,000,000 9,990,657 2/7/95 6.01 14,500,000 14,485,500 2/14/95 5.72 30,000,000 29,938,250 2/16/95 5.24 5,000,000 4,989,375 Deutsche Bank, A.G. 5/1/95 5.92 10,000,000 9,857,847 5/1/95 6.02 5,000,000 4,927,564 Dresdner U.S. Finance Inc. 2/17/95 5.89 5,000,000 4,987,089 Eiger Capital Corp. 2/9/95 5.78 4,815,000 4,808,848 Exxon Imperial U.S., Inc. 2/6/95 5.62 38,730,000 38,699,877 Ford Motor Credit Corp. 2/6/95 6.19 25,000,000 24,978,750 Ford Motor Credit, PLC 2/7/95 5.63 15,000,000 14,985,975 Gaz de France 2/15/95 5.67 20,000,000 19,956,056 General Electric Capital Corp. 2/1/95 5.91(a) 40,000,000 40,000,000 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 Hewlett-Packard Co. 2/21/95 5.18% $ 7,750,000 $ 7,728,257 2/27/95 5.20 20,000,000 19,926,767 ITT Hartford Group, Inc. 2/13/95 5.73 21,500,000 21,459,150 International Nederlanden U.S. Funding Corp. 2/9/95 6.01 11,547,000 11,531,604 Matterhorn Capital Corp. (LOC Union Bank of Switzerland) 2/7/95 5.78 36,124,000 36,089,381 2/17/95 5.88 16,751,000 16,707,447 Morgan Stanley Group, Inc. 2/13/95 6.26 35,000,000 34,927,783 Nestle Capital Corp. 2/16/95 5.68 67,800,000 67,640,388 New Center Asset Trust 2/6/95 6.18 30,000,000 29,974,500 New South Wales Treasury Corp. 2/6/95 6.17 20,000,000 19,983,028 2/6/95 6.19 50,000,000 49,957,500 Pfizer 2/7/95 5.62 25,000,000 24,976,667 Preferred Receivables Funding Corp. 2/13/95 5.67 7,125,000 7,111,581 2/15/95 5.68 25,100,000 25,044,850 Principal Mutual Life Insurance Co. 2/13/95 5.67 10,000,000 9,981,167 Toronto Dominion Holdings USA, Inc. 3/1/95 5.20 5,000,000 4,980,283 3/1/95 5.21 10,000,000 9,960,489 5/2/95 6.03 5,000,000 4,926,750 UBS Finance (DE), Inc. 2/1/95 5.90 45,000,000 45,000,000 U.S. West Communications 2/7/95 6.01 3,700,000 3,696,300 2/15/95 5.80 16,200,000 16,163,586 2/16/95 5.80 20,000,000 19,951,917 Westdeutsche Landesbank 2/17/95 5.78 25,000,000 24,936,111 TOTAL COMMERCIAL PAPER 971,553,301 Federal Agencies - 7.9% FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 0.7% 2/21/95 5.39% $ 15,000,000 $ 14,956,083 FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 0.7% 3/27/95 5.55 5,000,000 4,959,500 5/22/95 6.17 10,000,000 9,817,278 14,776,778 FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 6.5% 2/8/95 5.61 35,000,000 34,961,889 3/2/95 5.48 26,900,000 26,783,635 3/9/95 5.19 25,000,000 24,873,500 3/22/95 5.55 25,000,000 24,816,250 5/17/95 6.10 10,000,000 9,827,333 5/17/95 6.14 10,000,000 9,826,163 131,088,770 TOTAL FEDERAL AGENCIES 160,821,631 U.S. Treasury Obligations - 1.5% U.S. Treasury Bills 2/9/95 3.83 30,000,000 29,975,433 Bank Notes - 1.5% Fifth Third Bank - Cincinnati 2/15/95 6.25 5,000,000 4,999,156 NBD Bank, N.A. 2/6/95 5.78 15,000,000 15,000,056 4/7/95 5.80 10,000,000 10,000,000 TOTAL BANK NOTES 29,999,212 Medium-Term Notes (a) - 0.5% Beneficial Corp. 3/31/95 6.15 10,000,000 10,000,000 Short-Term Notes (a) (b) - 2.7% CSA Funding - A 2/7/95 6.30 10,000,000 10,000,000 CSA Funding - B 2/7/95 6.30 22,000,000 22,000,000 CSA Funding - C 2/7/95 6.30 23,000,000 23,000,000 TOTAL SHORT-TERM NOTES 55,000,000 ANNUALIZED YIELD AT DUE TIME OF PRINCIPAL VALUE MATURITY VALUE DATE PURCHASE AMOUNT (NOTE 1) AMOUNT (NOTE 1) Time Deposits - 12.7% Bank of Tokyo 2/2/95 5.56% $ 65,000,000 $ 65,000,000 Canadian Imperial Bank of Commerce 2/1/95 5.88 50,000,000 50,000,000 Dai-Ichi Kangyo Bank, Ltd. 2/2/95 5.56 10,000,000 10,000,000 Mitsubishi Bank, Ltd. 2/6/95 6.00 17,000,000 17,000,000 Norddeutsche Landesbank 2/2/95 5.56 50,000,000 50,000,000 Westdeutsche Landesbank 2/1/95 5.88 65,000,000 65,000,000 TOTAL TIME DEPOSITS 257,000,000 Municipal Securities (a) - 1.9% Illinois Student Assistance Commission 2/7/95 6.01 10,000,000 10,000,000 New Orleans Aviation Board (MBIA Insured) 2/7/95 6.09 9,300,000 9,300,000 New York General Obligation 2/17/95 5.93 20,000,000 20,000,000 TOTAL MUNICIPAL SECURITIES 39,300,000 Repurchase Agreements - 3.5% In a joint trading account (U.S. Treasury Obligations) dated 1/31/95 due 2/1/95 At 5.82% $ 71,387,540 $ 71,376,000 TOTAL INVESTMENTS - 100% $ 2,029,114,054 Total Cost for Income Tax Purposes - $2,029,114,054 LEGEND: (a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due date on these types of securities reflects the next interest rate reset date or, when applicable, the final maturity date. (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 CSA Funding - A 10/28/93 $ 10,000,000 CSA Funding - B 10/28/93 $ 22,000,000 CSA Funding - C 10/28/93 $ 23,000,000 INCOME TAX INFORMATION: At July 31, 1994, the fund had a capital loss carryforward of approximately $190,000 of which $30,000, $35,000 and $125,000 will expire on July 31, 2000, 2001 and 2002 respectively. MONEY MARKET PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities
January 31, 1995 (Unaudited) ASSETS Investment in securities, at value (including repurchase agreements of $71,376,000) - See accompanying $ 2,029,114,054 schedule Cash 52,075 Interest receivable 3,947,938 Receivable from investment adviser for expense 372,159 reductions TOTAL ASSETS 2,033,486,226 LIABILITIES Payable for investments $ 10,000,000 purchased Share transactions in process 5,395,840 Dividends payable 532,843 Accrued management fee 848,161 Other payables and accrued expenses 685,742 TOTAL LIABILITIES 17,462,586 NET ASSETS $ 2,016,023,640 Net Assets consist of: Paid in capital $ 2,016,911,551 Accumulated net realized gain (loss) on investments (887,911) NET ASSETS, for 2,016,911,551 shares outstanding $ 2,016,023,640 NET ASSET VALUE, offering price and redemption price per share ($2,016,023,640 (divided by) 2,016,911,551 $1.00 shares)
Statement of Operations
Six Months Ended January 31, 1995 (Unaudited) INTEREST INCOME $ 47,050,652 EXPENSES Management fee $ 4,409,174 Transfer agent fees 2,809,224 Accounting fees and expenses 90,593 Non-interested trustees' compensation 19,887 Custodian fees and expenses 53,717 Registration fees 78,416 Audit 9,560 Legal 15,621 Miscellaneous 12,864 Total expenses before 7,499,056 reductions Expense reductions (1,767,130) 5,731,926 NET INTEREST INCOME 41,318,726 NET REALIZED GAIN (LOSS) ON (698,016) INVESTMENTS NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 40,620,710
Statement of Changes in Net Assets
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1995 JULY 31, (UNAUDITED) 1994 INCREASE (DECREASE) IN NET ASSETS Operations $ 41,318,726 $ 44,783,808 Net interest income Net realized gain (loss) (698,016) (124,844) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 40,620,710 44,658,964 Dividends to shareholders from net interest income (41,318,726) (44,783,808) Share transactions at net asset value of $1.00 per share 4,728,223,133 9,151,729,228 Proceeds from sales of shares Reinvestment of dividends from net interest income 37,260,596 37,385,748 Cost of shares redeemed (4,273,630,276) (9,115,524,819) Net increase (decrease) in net assets and shares resulting from share transactions 491,853,453 73,590,157 TOTAL INCREASE (DECREASE) IN NET ASSETS 491,155,437 73,465,313 NET ASSETS Beginning of period 1,524,868,203 1,451,402,890 End of period $ 2,016,023,640 $ 1,524,868,203
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED JULY 31, ENDED JANUARY 31, 1995 (UNAUDITED) 1994 1993 1992 1991 1990 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 .023 .029 .028 .041 .067 .080 Net interest income Less Distributions (.023) (.029) (.028) (.041) (.067) (.080) From net interest income Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 2.35% 2.98% 2.82% 4.21% 6.90% 8.34% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 2,016,024 $ 1,524,868 $ 1,451,403 $ 1,531,364 $ 1,714,108 $ 1,349,670 Ratio of expenses to average net assets .65%A .65% .61% .59% .60% .61% Ratio of expenses to average net assets .85%A .74% .61% .59% .60% .61% before expense reductions Ratio of net interest income to average 4.69%A 2.96% 2.76% 4.19% 6.61% 7.99% net assets
A ANNUALIZED B 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. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. DAILY MONEY FUND: U.S. TREASURY PORTFOLIO INVESTMENTS/JANUARY 31, 1995 (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 - 24.3% U.S. TREASURY BILLS - 12.0% 3/2/95 5.06% $ 24,000,000 $ 23,904,702 5/4/95 5.68 36,000,000 35,492,160 7/13/95 6.63 77,000,000 74,777,203 7/27/95 6.40 44,000,000 42,666,311 8/24/95 5.48 59,000,000 57,261,467 234,101,843 U.S. TREASURY NOTES - 12.3% 2/15/95 5.29 32,000,000 32,027,375 2/15/95 5.31 20,000,000 20,016,961 2/28/95 5.03 18,000,000 17,984,332 4/30/95 5.54 55,000,000 54,762,434 5/15/95 5.66 23,000,000 23,001,446 5/15/95 6.23 24,000,000 23,972,915 5/15/95 6.33 23,000,000 22,967,611 5/15/95 6.45 23,000,000 23,125,713 5/15/95 6.46 22,000,000 21,959,874 239,818,661 TOTAL U.S. TREASURY OBLIGATIONS 473,920,504 Repurchase Agreements - 75.7% In a joint trading account (U.S. Treasury Obligations) dated 1/31/95 due 2/1/95: At 5.80% $ 1,419,228,734 $ 1,419,000,000 At 5.82% 58,415,443 58,406,000 TOTAL REPURCHASE AGREEMENTS 1,477,406,000 TOTAL INVESTMENTS - 100% $ 1,951,326,504 Total Cost for Income Tax Purposes - $1,951,326,504 INCOME TAX INFORMATION: At July 31, 1994, the fund had a capital loss carryforward of approximately $505,000 of which $44,000 and $461,000 will expire on July 31, 2001 and 2002, respectively. U.S. TREASURY PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities
January 31, 1995 (Unaudited) ASSETS Investment in securities, at value (including repurchase agreements of $1,477,406,000) - See accompanying $ 1,951,326,504 schedule Interest receivable 4,529,976 Receivable from investment adviser for expense 6,081 reductions TOTAL ASSETS 1,955,862,561 LIABILITIES Payable to custodian bank $ 9,633 Share transactions in process 8,333,543 Dividends payable 4,203,398 Accrued management fee 820,207 Other payables and accrued expenses 311,331 TOTAL LIABILITIES 13,678,112 NET ASSETS $ 1,942,184,449 Net Assets consist of: Paid in capital $ 1,942,610,523 Accumulated net realized gain (loss) on investments (426,074) NET ASSETS $ 1,942,184,449 INITIAL CLASS: $1.00 NET ASSET VALUE, offering price and redemption price per share ($1,933,787,011 (divided by) 1,934,211,243 shares) CLASS B: $1.00 NET ASSET VALUE, offering price and redemption price per share ($8,397,438 (divided by) 8,399,280 shares)
Statement of Operations
Six Months Ended January 31, 1995 (Unaudited) INTEREST INCOME $ 50,183,179 EXPENSES Management fee $ 4,959,198 Transfer agent fees 770,734 Initial Class Class B 23,580 Distribution fees - Class B 18,062 Accounting fees and expenses 98,736 Non-interested trustees' compensation 36,202 Custodian fees and expenses 46,392 Registration fees - Initial Class 117,755 Registration fees - Class B 8,505 Audit 17,858 Legal 14,918 Miscellaneous 18,464 Total expenses before 6,130,404 reductions Expense reductions - (27,832) 6,102,572 Class B NET INTEREST INCOME 44,080,607 NET REALIZED GAIN (LOSS) ON 28,931 INVESTMENTS NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 44,109,538
Statement of Changes in Net Assets
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1995 JULY 31, (UNAUDITED) 1994 INCREASE (DECREASE) IN NET ASSETS Operations $ 44,080,607 $ 75,067,061 Net interest income Net realized gain (loss) 28,931 (460,852) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 44,109,538 74,606,209 Distributions to shareholders from: Net interest income Initial Class (43,974,373) (75,066,532) Class B (106,234) (529) Share transactions - net increase (decrease) at net asset value of $1.00 per share (83,621,702) (922,932,430) TOTAL INCREASE (DECREASE) IN NET ASSETS (83,592,771) (923,393,282) NET ASSETS Beginning of period 2,025,777,220 2,949,170,502 End of period $ 1,942,184,449 $ 2,025,777,220
FINANCIAL HIGHLIGHTS - Initial Class
SIX MONTHS YEARS ENDED JULY 31, ENDED January 31, 1995 (UNAUDITED) 1994 1993 1992 1991 1990 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 Net interest income .022 .029 .027 .042 .065 .079 Less Distributions From net interest income (.022) (.029) (.027) (.042) (.065) (.079) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 2.26% 2.89 2.78 4.25 6.69 8.24 % % % % % RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted)$ 1,933,787 $ 2,025,149 $ 2,949,171 $ 3,093,714 $ 1,701,704 $ 1,177,290 Ratio of expenses to average net assets.61%A .60 .57 .59 .59 .59 % % % % % Ratio of net interest income to average net assets 4.45%A 2.81 2.73 4.14 6.42 7.91 % % % % %
A ANNUALIZED B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. FINANCIAL HIGHLIGHTS - Class B
SIX MONTHS JULY 1, 1994 ENDED (COMMENCEMENT JANUARY 31, 1995 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1994 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 Income from Investment Operations Net interest income .019 .002 Less Distributions From net interest income (.019) (.002) Net asset value, end of period $ 1.000 $ 1.000 TOTAL RETURN B 1.89% 0.25% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 8,397 $ 628 Ratio of expenses to average net assets 1.35%A 1.35%A Ratio of expenses to average net assets before expense reductions 2.38%A 2.52%A Ratio of net interest income to average net assets 3.92%A 2.06%A
A ANNUALIZED B 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. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. NOTES TO FINANCIAL STATEMENTS FOR THE PERIOD ENDED JANUARY 31, 1995 (UNAUDITED) 5. SIGNIFICANT ACCOUNTING POLICIES. Money Market Portfolio and U.S. Treasury 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 Delaware Business trust. Each fund is authorized to issue an unlimited number of shares. U.S. Treasury Portfolio offers two classes of shares, Initial Class and Class B, each of which has equal rights to earnings, assets and voting privileges except that each class bears different distribution and transfer agent expenses and certain registration fees. Each class has exclusive voting rights with respect to its distribution plans. The Class B shares are offered by exchange only, to investors in Class B shares of certain Fidelity Advisor Funds. Class B commenced operations on July 1, 1994. 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. ALLOCATED EARNINGS AND EXPENSES. Interest income, expenses (other than expenses incurred under each class' Distribution and Service Plans, Transfer Agent Agreements and certain registration fees) and realized and unrealized gains or losses on investments are allocated to each class of shares based upon their relative net assets. 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. 6. 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 affiliated entities of FMR, may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements that mature in 60 days or less from the date of purchase, and are collateralized by U.S. Treasury or Federal Agency obligations. RESTRICTED SECURITIES. The Money Market fund is 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 $55,000,000 or 2.7% of net assets. 7. 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, 1995 and due February 1, 1995. The maturity values of the joint trading account investments were $1,419,228,734 at 5.80% and $58,415,443 at 5.82%. 3. JOINT TRADING ACCOUNT - CONTINUED 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 5.80% 11 22.9% $ 4,611,000,000 $ 4,611,743,265 $ 4,706,138,025 0%-12.50% 2/2/95-11/15/24 At 5.82% 5 34.5% $ 580,000,000 $ 580,093,778 $ 591,966,560 0%-12.50% 2/2/95-11/15/24 8. 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) adopted on behalf of shares of the Money Market fund and the Initial shares of U.S. Treasury fund 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 each 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 $1,952,575 and $3,163,191 for the Money Market fund and the Initial shares of the U.S. Treasury fund, respectively, for the period. In accordance with Rule 12b-1 of the 1940 Act, the Trustees have adopted a separate distribution plan with respect to the U.S. Treasury fund's Class B shares (Class B Plan), pursuant to which the fund pays FDC a distribution and service fee. This fee is based on an annual rate of 1.00% (of which .75% represents a distribution fee and is net of payments made by FMR to FDC of up to .38%, and .25% which represents a shareholder service fee) of the average net assets of the Class B shares. For the period, the fund and FMR paid FDC $18,062 and $8,932, respectively, under the Class B Plan, of which $6,692 was paid to investment professionals for providing shareholder support services to investors. SALES LOAD. FDC receives the proceeds of a contingent deferred sales charge levied on Class B share redemptions occurring within five years of purchase. The charge is based on declining rates which range from 4% to 1% of the lesser of the cost of shares at the initial date of purchase or the net asset value of the redeemed shares, excluding any reinvested dividends and capital gains. For the period, FDC received contingent deferred sales charges of $2,457 on Class B share redemptions from the fund. When Class B shares are sold, FDC pays commissions from its own resources to dealers through which the sales are made. 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. 9. EXPENSE REDUCTIONS. FMR voluntarily agreed to reimburse the Money Market, U.S. Treasury Initial Class and U.S. Treasury Class B funds' operating expenses (excluding interest, taxes, brokerage commissions and extraordinary expenses) above an annual rate of .65%, .65% and 1.35%, respectively, of average net assets. For the period, the reimbursement reduced the expenses of the Money Market and U.S. Treasury Class B funds by $1,767,130 and $29,994, respectively. 10. SHARE TRANSACTIONS. Share transactions for both classes of the U.S. Treasury fund at net asset value of $1.00 per share were as follows: INITIAL CLASS SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1995 JULY 31, (UNAUDITED) 1994
Proceeds from sales of shares $ 5,231,749,343 $ 13,798,065,709 Reinvestment of dividends from net interest income 21,688,781 41,469,354 Cost of shares redeemed (5,344,830,909) (14,763,095,690) Net increase (decrease) in net assets and shares resulting from share transactions $ (91,392,785) $ (923,560,627)
CLASS B SIX MONTHS JULY 1, 1994 ENDED (COMMENCEMENT JANUARY 31, 1995 OF OPERATIONS) TO (UNAUDITED) JULY 31, 1994 Proceeds from sales of shares $ 10,695,734 $ 627,668 Reinvestment of dividends from net interest income 100,028 529 Cost of shares redeemed (3,024,679) - Net increase (decrease) in net assets and shares resulting from share transactions $ 7,771,083 $ 628,197
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. Page 18 = BLANK Do NOT strip-in this type Page 19 = BLANK Do NOT strip-in this type 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 Leland Barron, VICE PRESIDENT Fred L. Henning, Jr., VICE PRESIDENT Arthur S. Loring, SECRETARY Stephen P. Jonas, TREASURER John H. Costello, ASSISTANT TREASURER Leonard M. Rush, ASSISTANT TREASURER 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-3-95S CAPITAL RESERVES SEMIANNUAL REPORT JANUARY 31, 1995 CAPITAL RESERVES: MONEY MARKET PORTFOLIO INVESTMENTS/JANUARY 31, 1995 (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 - 6.4% DOMESTIC BANKERS' ACCEPTANCES - 3.3% Chemical Bank 3/6/95 5.22% $ 7,125,492 $ 7,092,246 CoreStates Bank of Delaware, N.A. 5/12/95 6.68 5,000,000 4,909,722 Morgan Bank (Delaware) 2/7/95 6.10 5,000,000 4,994,958 Trust Company Bank of Georgia 2/6/95 5.76 8,000,000 7,993,622 24,990,548 NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 3.1% Barclays Bank, PLC 3/13/95 5.35 5,000,000 4,971,056 Dai-Ichi Kangyo Bank, Ltd. 2/6/95 6.26 5,000,000 4,995,694 Mitsubishi Bank, Ltd. 2/6/95 5.76 2,650,000 2,647,909 2/13/95 5.77 2,350,000 2,345,551 Sanwa Bank, Ltd. 2/6/95 5.95 1,600,000 1,598,680 Societe Generale 2/1/95 5.63 2,646,700 2,646,700 2/3/95 5.63 128,015 127,975 2/6/95 5.64 2,461,098 2,459,177 2/8/95 5.64 659,606 658,885 2/9/95 5.64 840,832 839,782 23,291,409 TOTAL BANKERS' ACCEPTANCES 48,281,957 Certificates of Deposit - 14.3% DOMESTIC CERTIFICATES OF DEPOSIT - 1.9% Citibank, N.A. 2/6/95 5.80 10,000,000 10,000,000 Old Kent Bank & Trust Co. 2/21/95 5.25 4,000,000 4,000,000 14,000,000 NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 9.9% Canadian Imperial Bank of Commerce 2/9/95 5.75 10,000,000 10,000,000 Fuji Bank, Ltd. 2/10/95 5.79 5,000,000 5,000,000 3/1/95 6.06 5,000,000 5,000,000 Industrial Bank of Japan, Ltd. 2/10/95 5.75 5,000,000 5,000,000 National Westminster Bank, PLC 3/3/95 6.13% $ 5,000,000 $ 5,000,161 Sakura Bank, Ltd. 2/27/95 6.00 5,000,000 5,000,000 Sanwa Bank, Ltd. 2/6/95 5.90 8,000,000 8,000,022 2/27/95 6.02 5,000,000 4,999,785 Societe Generale 2/6/95 5.75 5,000,000 5,000,000 2/13/95 5.62 1,000,000 999,863 2/13/95 5.75 1,000,000 999,801 3/17/95 5.93 5,000,000 5,000,000 4/5/95 5.80 5,000,000 5,000,000 Sumitomo Bank, Ltd. 2/17/95 5.71 5,000,000 5,000,000 Swiss Bank Corp. 3/28/95 5.63 5,000,000 5,000,000 74,999,632 LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 1.3% Bankers Trust Co. 4/12/95 5.70 5,000,000 5,000,000 4/13/95 5.74 5,000,000 5,000,000 10,000,000 LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 1.2% Barclays Bank, PLC 4/28/95 5.87 5,000,000 5,000,000 Dresdner Bank, A.G. 2/7/95 5.72 4,000,000 3,999,887 8,999,887 TOTAL CERTIFICATES OF DEPOSITS 107,999,519 Commercial Paper - 46.9% A.H. Robins Company, Incorporated 2/8/95 5.77 3,000,000 2,996,646 American Express Credit Corp. 2/9/95 5.75 6,000,000 5,992,373 American Home Food Products Corp. 2/7/95 6.00 5,000,000 4,995,067 2/21/95 6.04 5,000,000 4,983,472 B.B.V. Finance (Delaware), Inc. 3/15/95 6.24 5,000,000 4,964,125 BHF Finance (Delaware), Inc. 2/10/95 5.75 5,000,000 4,992,850 Bank of New York Company, Inc. 2/1/95 5.85 5,000,000 5,000,000 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 Bank of Scotland 4/25/95 5.87% $ 5,000,000 $ 4,934,292 Bankers Trust Corp. 2/7/95 5.88 5,000,000 4,995,167 Bayerische Vereinsbank A.G. 4/12/95 5.70 5,000,000 4,946,042 Bear Stearns Cos., Inc. 2/6/95 5.78 10,000,000 9,992,083 CIESCO, L.P. 2/6/95 5.87 15,000,000 14,987,833 CIT Group Holdings, Inc. 2/8/95 5.78 10,000,000 9,988,819 Chrysler Financial Corporation 2/13/95 6.29 5,000,000 4,989,633 Commerzbank U.S. Finance, Inc. 2/7/95 5.62 5,000,000 4,995,328 Cooper Industries, Inc. 2/3/95 6.05 5,000,000 4,998,319 Corestates Capital Corp. 2/15/95 5.83 (a) 5,000,000 5,000,000 Enterprise Funding Corp. 2/10/95 5.87 3,470,000 3,464,925 2/15/95 5.87 6,000,000 5,986,350 Ford Motor Credit Corp. 2/16/95 5.93 1,000,000 997,542 General Electric Capital Corp. 2/1/95 5.91 (a) 5,000,000 5,000,000 2/10/95 5.24 5,000,000 4,993,625 2/10/95 5.57 5,000,000 4,993,163 4/12/95 5.74 5,000,000 4,945,750 General Motors Acceptance Corp. 2/6/95 6.27 4,000,000 3,996,556 2/14/95 5.98 4,000,000 3,991,406 2/22/95 6.04 5,000,000 4,982,646 3/13/95 6.20 5,000,000 4,965,944 4/11/95 6.41 5,000,000 4,939,529 5/1/95 5.95 5,000,000 4,928,553 Generale Bank 3/27/95 5.66 10,000,000 9,917,500 4/13/95 5.75 5,000,000 4,944,876 Golden Peanut Co. 2/22/95 5.65 6,000,000 5,980,575 Goldman Sachs Group, L.P. (The) 2/1/95 6.09 5,000,000 5,000,000 Hanson Finance, PLC 2/6/95 5.73% $ 5,000,000 $ 4,996,076 2/16/95 6.10 3,000,000 2,992,450 Household Finance Corp. 2/27/95 6.05 11,000,000 10,952,135 ITT Corp. 2/6/95 6.23 5,000,000 4,995,715 International Nederlanden U.S. Funding Corp. 2/2/95 5.21 2,000,000 1,999,717 Merrill Lynch & Co., Inc. 2/2/95 6.16 2,000,000 1,999,661 5/15/95 6.19 5,000,000 4,914,167 Morgan Stanley Group, Inc. 2/13/95 6.26 5,000,000 4,989,683 3/6/95 6.37 5,000,000 4,971,263 National Rural Util. Coop. Fin. Corp. 2/10/95 5.77 10,000,000 9,985,625 New Center Asset Trust 2/13/95 5.80 5,000,000 4,990,467 New South Wales Treasury Corp. 2/6/95 5.72 2,800,000 2,797,783 2/6/95 5.74 1,400,000 1,398,888 Norwest Corp. 2/10/95 5.73 7,000,000 6,990,025 Pfizer 2/7/95 5.62 8,000,000 7,992,533 Preferred Receivables Funding Corp. 2/9/95 5.76 2,725,000 2,721,518 Prospect Street Senior Portfolio LP 2/8/95 6.27 3,853,000 3,848,355 2/15/95 6.25 3,538,000 3,529,497 2/22/95 5.94 1,168,000 1,164,014 3/1/95 6.08 11,137,000 11,084,594 Seagram & Sons, Joseph E. (Inc.) 2/2/95 5.77 5,000,000 4,999,208 2/9/95 5.80 5,000,000 4,993,644 2/23/95 5.93 4,427,000 4,411,173 Sears Roebuck Acceptance Corp. 2/7/95 5.70 5,000,000 4,995,325 2/8/95 5.84 5,000,000 4,994,410 2/14/95 5.94 5,000,000 4,989,438 Siemens Corp. 4/25/95 5.86 5,000,000 4,934,292 4/25/95 5.90 3,000,000 2,960,298 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 Smith Barney, Inc. 2/9/95 5.73% $ 5,000,000 $ 4,993,667 2/10/95 5.71 5,000,000 4,992,900 Textron, Inc. 2/15/95 5.83 5,000,000 4,988,722 Toronto Dominion Holdings USA, Inc. 5/2/95 5.90 5,000,000 4,928,375 U.S.L. Capital, Inc. 3/3/95 6.08 5,000,000 4,974,792 Union Pacific Corp. 2/6/95 6.31 5,000,000 4,995,667 TOTAL COMMERCIAL PAPER 354,247,066 Federal Agencies - 0.7% FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 0.7% 5/11/95 5.98 5,000,000 4,920,113 U.S. Treasury Obligations - 0.7% U.S. Treasury Bills 4/6/95 5.15 5,000,000 4,955,556 Bank Notes - 7.9% Bank of New York 2/1/95 6.23 (a) 5,000,000 4,999,537 Bank One - Delaware 2/1/95 6.22 (a) 5,000,000 5,000,000 Bank One - Milwaukee 2/1/95 5.95 (a) 10,000,000 9,999,178 Comerica Bank - Detroit 2/1/95 6.23 (a) 5,000,000 5,000,000 2/1/95 6.24 (a) 5,000,000 4,999,479 First of America Bank - Western Michigan 3/13/95 6.40 5,000,000 4,999,884 NBD Bank, N.A. 2/6/95 5.78 10,000,000 10,000,038 4/28/95 5.88 5,000,000 5,000,232 PNC Bank, N.A. 2/7/95 5.64 (a) 5,000,000 4,997,123 Society National Bank 2/1/95 6.24 (a) 5,000,000 4,999,473 TOTAL BANK NOTES 59,994,944 Master Notes (a) - 2.5% J.P. Morgan Securities 2/1/95 6.14% $ 5,000,000 $ 5,000,000 2/1/95 6.17 10,000,000 10,000,000 Norwest Corp. 2/1/95 6.06 4,000,000 4,000,000 TOTAL MASTER NOTES 19,000,000 Medium-Term Notes (a) - 9.9% Abbey National Treasury Services (c) 2/1/95 6.23 5,000,000 4,999,773 3/31/95 6.50 26,000,000 26,000,000 Beneficial Corp. 2/15/95 5.91 10,000,000 9,997,876 3/31/95 6.40 4,000,000 4,000,000 General Motors Acceptance Corp. 2/7/95 5.85 6,000,000 6,000,000 Goldman Sachs Group, L.P. (The) (c) 2/16/95 5.80 6,000,000 6,000,000 3/1/95 5.61 6,000,000 6,000,000 Norwest Corp. 3/15/95 6.46 7,000,000 7,000,000 PHH Corp. 2/1/95 6.19 5,000,000 5,000,000 TOTAL MEDIUM-TERM NOTES 74,997,649 Short-Term Notes (a) (b) - 2.5% SMM Trust Company (1994-A) 3/17/95 6.37 18,000,000 18,000,000 SMM Trust Company (1994-D) 4/28/95 6.36 1,000,000 1,000,000 TOTAL SHORT-TERM NOTES 19,000,000 Time Deposits - 2.7% Fleet Bank of Massachusetts 2/2/95 5.63 10,000,000 10,000,000 Westdeutsche Landesbank 2/1/95 5.88 10,000,000 10,000,000 TOTAL TIME DEPOSITS 20,000,000 Municipal Securities (a) - 1.0% New Orleans Aviation Board (MBIA Insured) 2/7/95 6.09 1,500,000 1,500,000 New York General Obligation 2/17/95 5.93 6,000,000 6,000,000 TOTAL MUNICIPAL SECURITIES 7,500,000 MATURITY VALUE AMOUNT (NOTE 1) Repurchase Agreements - 4.5% With First Boston Corporation: At 5.75%, dated 1/10/95 due 2/9/95 U.S. Government Obligations (principal amount $10,480,635) 7% to 8%, 1/1/00 to 7/1/09 $ 10,047,917 $ 10,000,000 With Goldman Sachs & Co.: At 5.82%, dated 1/23/95 due 2/15/95 U.S. Government Obligations (principal amount $5,150,001) 6.356% to 10%, 11/1/21 to 4/1/23 5,018,592 5,000,000 In a joint trading account (U.S. Treasury Obligations) dated 1/31/95 due 2/1/95 At 5.82% 19,359,131 19,356,000 TOTAL REPURCHASE AGREEMENTS 34,356,000 TOTAL INVESTMENTS - 100% $ 755,252,804 Total Cost for Income Tax Purposes - $755,252,804 LEGEND: (c) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. The due date on these types of securities reflects the next interest rate reset date or, when applicable, the final maturity date. (d) 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: (1994-A) 3/18/94 $ 18,000,000 (1994-D) 10/28/94 $ 1,000,000 (e) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $42,999,773 or 5.7% of net assets. INCOME TAX INFORMATION: At July 31, 1994, the fund had a capital loss carryforward of approximately $157,000 of which $8,000 and $149,000 will expire on July 31, 2001 and 2002, respectively. MONEY MARKET PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities
January 31, 1995 (Unaudited) ASSETS Investment in securities, at value (including repurchase agreements of $34,356,000) - See accompanying $ 755,252,804 schedule Interest receivable 2,056,905 Receivable from investment adviser for expense 69,372 reductions TOTAL ASSETS 757,379,081 LIABILITIES Payable to custodian bank $ 135,978 Payable for investments 4,000,000 purchased Share transactions in process 1,751,331 Dividends payable 244,057 Accrued management fee 308,569 Other payables and accrued expenses 369,231 TOTAL LIABILITIES 6,809,166 NET ASSETS $ 750,569,915 Net Assets consist of: Paid in capital $ 750,719,820 Accumulated net realized gain (loss) on investments (149,905) NET ASSETS, for 750,719,820 shares outstanding $ 750,569,915 NET ASSET VALUE, offering price and redemption price per share ($750,569,915 (divided by) 750,719,820 shares) $1.00
Statement of Operations
Six Months Ended January 31, 1995 (Unaudited) INTEREST INCOME $ 19,036,966 EXPENSES Management fee $ 1,795,215 Transfer agent fees 647,270 Distribution fees 1,256,651 Accounting fees and expenses 51,715 Non-interested trustees' compensation 1,798 Custodian fees and expenses 26,798 Registration fees 124,494 Audit 7,894 Legal 6,917 Miscellaneous 5,235 Total expenses before 3,923,987 reductions Expense reductions (369,461) 3,554,526 NET INTEREST INCOME 15,482,440 NET REALIZED GAIN (LOSS) ON (5,293) INVESTMENTS NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,477,147
Statement of Changes in Net Assets
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1995 JULY 31, (UNAUDITED) 1994 INCREASE (DECREASE) IN NET ASSETS Operations $ 15,482,440 $ 17,953,417 Net interest income Net realized gain (loss) (5,293) (148,964) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 15,477,147 17,804,453 Dividends to shareholders from net interest income (15,482,440) (17,953,417) Share transactions at net asset value of $1.00 per share 2,150,794,351 3,974,385,280 Proceeds from sales of shares Reinvestment of dividends from net interest income 14,105,473 16,240,483 Cost of shares redeemed (2,094,473,395) (3,911,825,770) Net increase (decrease) in net assets and shares resulting from share transactions 70,426,429 78,799,993 TOTAL INCREASE (DECREASE) IN NET ASSETS 70,421,136 78,651,029 NET ASSETS Beginning of period 680,148,779 601,497,750 End of period $ 750,569,915 $ 680,148,779
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, 1990 ENDED (COMMENCEMENT JANUARY 31, 1995 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1994 1993 1992 1991 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .022 .027 .025 .041 .047 Net interest income Less Distributions (.022) (.027) (.025) (.041) (.047) From net interest income Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 2.19% 2.72% 2.57% 4.13% 4.79% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 750,570 $ 680,149 $ 601,498 $ 354,189 $ 108,991 Ratio of expenses to average net assets .99%A .98% .95% .82% .83%A Ratio of expenses to average net assets before 1.09%A 1.12% 1.14% 1.17% 1.25%A expense reductions Ratio of net interest income to average net assets 4.31%A 2.70% 2.52% 3.81% 5.71%A
A ANNUALIZED B 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. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO INVESTMENTS/JANUARY 31, 1995 (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 - 32.1% U.S. TREASURY BILLS - 14.1% 5/4/95 5.68% $ 7,000,000 $ 6,901,253 7/13/95 6.63 10,000,000 9,711,325 7/27/95 6.40 2,000,000 1,939,378 8/24/95 5.48 10,000,000 9,705,050 28,257,006 U.S. TREASURY NOTES - 18.0% 2/15/95 5.30 7,000,000 7,005,961 2/15/95 5.31 4,000,000 4,003,392 2/28/95 5.03 3,000,000 2,997,389 4/30/95 5.54 9,000,000 8,961,126 5/15/95 5.66 4,000,000 4,000,251 5/15/95 6.23 2,000,000 1,997,743 5/15/95 6.33 3,000,000 2,995,775 5/15/95 6.45 2,000,000 2,010,932 5/15/95 6.46 2,000,000 1,996,352 35,968,921 TOTAL U.S. TREASURY OBLIGATIONS 64,225,927 Repurchase Agreements - 67.9% In a joint trading account (U.S. Treasury Obligations) dated 1/31/95, due 2/1/95 At 5.80% $ 111,017,892 $ 111,000,000 At 5.82% 24,766,004 24,762,000 TOTAL REPURCHASE AGREEMENTS 135,762,000 TOTAL INVESTMENTS - 100% $ 199,987,927 Total Cost for Income Tax Purposes - $199,987,927 INCOME TAX INFORMATION: At July 31, 1994, the fund had a capital loss carryforward of approximately $41,000 of which $6,000 and $35,000 will expire on July 31, 2001 and 2002, respectively. U.S. GOVERNMENT PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities
January 31, 1995 (Unaudited) ASSETS Investment in securities, at value (including repurchase agreements of $135,762,000) - See accompanying $ 199,987,927 schedule Cash 6,014,196 Interest receivable 730,658 Receivable from investment adviser for expense 7,016 reductions TOTAL ASSETS 206,739,797 LIABILITIES Dividends payable $ 98,325 Accrued management fee 100,161 Other payables and accrued expenses 118,675 TOTAL LIABILITIES 317,161 NET ASSETS $ 206,422,636 Net Assets consist of: Paid in capital $ 206,461,593 Accumulated net realized gain (loss) on investments (38,957) NET ASSETS, for 206,461,593 shares outstanding $ 206,422,636 NET ASSET VALUE, offering price and redemption price per share ($206,422,636 (divided by) 206,461,593 shares) $1.00
Statement of Operations
Six Months Ended January 31, 1995 (Unaudited) INTEREST INCOME $ 8,086,479 EXPENSES Management fee $ 807,314 Transfer agent fees 147,578 Distribution fees 565,118 Accounting fees and expenses 28,057 Non-interested trustees' compensation 3,785 Custodian fees and expenses 15,061 Registration fees 125,786 Audit 5,908 Legal 3,236 Miscellaneous 2,467 Total expenses before 1,704,310 reductions Expense reductions (105,829) 1,598,481 NET INTEREST INCOME 6,487,998 NET REALIZED GAIN (LOSS) ON (497) INVESTMENTS NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,487,501
Statement of Changes in Net Assets
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1995 JULY 31, (UNAUDITED) 1994 INCREASE (DECREASE) IN NET ASSETS Operations $ 6,487,998 $ 7,851,980 Net interest income Net realized gain (loss) (497) (34,704) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 6,487,501 7,817,276 Dividends to shareholders from net interest income (6,487,998) (7,851,980) Share transactions at net asset value of $1.00 per share 1,322,259,321 2,416,632,169 Proceeds from sales of shares Reinvestment of dividends from net interest income 4,784,601 6,256,268 Cost of shares redeemed (1,426,881,490) (2,381,075,779) Net increase (decrease) in net assets and shares resulting from share transactions (99,837,568) 41,812,658 TOTAL INCREASE (DECREASE) IN NET ASSETS (99,838,065) 41,777,954 NET ASSETS Beginning of period 306,260,701 264,482,747 End of period $ 206,422,636 $ 306,260,701
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, 1990 ENDED (COMMENCEMENT JANUARY 31, 1995 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1994 1993 1992 1991 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .020 .025 .024 .041 .046 Net interest income Less Distributions (.020) (.025) (.024) (.041) (.046) From net interest income Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 2.06% 2.52% 2.40% 4.15% 4.66% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted)$ 206,423 $ 306,261 $ 264,483 $ 308,542 $ 80,762 Ratio of expenses to average net assets.99%A .98% .95% .65% .70%A Ratio of expenses to average net assets before 1.06%A 1.03% 1.07% 1.14% 1.27%A expense reductions Ratio of net interest income to average net assets 4.02%A 2.50% 2.39% 3.82% 5.65%A
A ANNUALIZED B 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. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO INVESTMENTS/JANUARY 31, 1995 (UNAUDITED) (SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS) PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - 100% ALABAMA - 0.6% Talladega Ind. Dev. Rev. (Wehadkee Yarn Mills Proj.) Series 1990, 3.80%, LOC Trust Company Bank of Georgia, VRDN (b) $ 750,000 $ 750,000 ARIZONA - 6.6% Cochise County Poll. Cont. Rev. Bonds (Arizona Elec. Pwr. Coop.) 3.80%, tender 3/1/95 (CFC Guaranteed Nat'l. Rural Util. Coop) (b) 700,000 700,000 Mojave County Ind. Dev. Auth. Ind. Dev. Rev. Bonds (Citizen Utilities Co.) Series 1993 E, 3.70%, tender 2/10/95 (b) 2,360,000 2,360,000 Phoenix Civic Impt. Corp. Airport Rev. Bonds 8% 7/1/95 (b) 1,000,000 1,015,403 Pinal County Ind. Dev. Auth. Ind. Dev. Rev. (Sunbelt Refining Co. LP Proj.) Series 1988, 3.85%, LOC Bankers Trust Co., VRDN (b) 600,000 600,000 Yavapai County Ind. Dev. Auth. Ind. Dev. Bonds (Citizen Utilities Co.) Series 1993, 3.70%, tender 2/10/95 (b) 3,000,000 3,000,000 7,675,403 CALIFORNIA - 6.0% California Gen. Oblig. Adj. Rate RAN Series 1994-95 B, 3.71% 6/28/95 2,000,000 2,000,000 California Student Ed. Loan Mktg. Corp. Student Loan Rev. Bonds Series 1994 A, 4.35%, tender 6/1/95, LOC Dresdner Bank (b) 500,000 500,000 California TRAN (Cash Reserve Prog. Auth.) Series A, 4.50% 7/5/95 2,000,000 2,006,092 Orange County Apt. Dev. Rev., VRDN: (WLCO Partners) Series 1985 C, 4.90% LOC Tokai Bank Ltd. 1,500,000 1,500,000 (Niguel Summit I) Issue 1985 U, Series A, 4.50%, LOC Tokai Bank Ltd. 1,000,000 1,000,000 7,006,092 COLORADO - 2.1% Fort Collins County Ind. Dev. Rev. (Phelps -Tointon Millwork Proj.) Series 1993, 4%, LOC Bank One, Milwaukee, VRDN (b) 1,450,000 1,450,000 Wheat Ridge County Ind. Dev. Rev. (Adolph Coors Co. Proj.) Series 1993, 3.85%, LOC Wachovia Bank Georgia, VRDN (b) 1,000,000 1,000,000 2,450,000 DISTRICT OF COLUMBIA - 0.6% Dist. of Columbia Hsg. Fin. Auth. Multi-Family Hsg. Rev. Rfdg. (Mount Vernon Plaza Apts.) Series 91, 3.95%, LOC Bank One, VRDN (b) 650,000 650,000 FLORIDA - 7.3% Broward County Ind. Dev. Auth. Rev. Rfdg. (Goldline Lab, Inc. Proj.) Series 1989 B, 3.80%, LOC Barnett Bank, VRDN (b) 247,000 247,000 Dade County Hsg. Fin. Corp. Participating VRDN, Series 1991 A, 4.20% (Liquidity Facility Bank One) (b) (c) 1,795,000 1,795,000 Dade County Ind. Dev. Rev. (Montenay-Dade Proj.) Series 1988, 3.80%, LOC Banque Paribas, VRDN (b) 1,475,000 1,475,000 Dade County Multi-Family Hsg. Rev. (Biscayne View Apts. Proj.) Series 1993, 4.05% (BPA Commonwealth Life Ins. Co.), VRDN (b) 1,475,000 1,475,000 Indian Trace Commty. Dev. Dist. Bonds (Broward County-Basin I Wtr. Mgmt.) 4.25%, tender 2/1/95, LOC Tokai Bank Ltd. 1,600,000 1,600,000 Okeechobee County Solid Wst. Rev. (Chambers Waste Sys.) Series 1992, 3.90%, LOC NationsBank, VRDN (b) 1,000,000 1,000,000 Palm Beach County Health Facs. Auth. Bonds, 4.50%, tender 4/27/95 (MBIA Insured) (Liquidity Facility Credit Suisse) 1,000,000 1,000,000 8,592,000 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED GEORGIA - 0.6% Pierce County Ind. Dev. & Bldg. Auth. Rev. (American Egg Prods. Inc. Proj.) Series 1989, 3.80%, LOC Trust Company Bank, VRDN (b) $ 170,000 $ 170,000 Rockdale County Ind. Dev. Rev. (Takahashi Works USA) Series 1990, 3.80%, LOC Sanwa Bank, VRDN (b) 500,000 500,000 670,000 ILLINOIS - 3.7% Chicago O'Hare Int'l. Arpt. Rev. (Northwest Orient Airlines) 3.90%, LOC Mitsubishi Bank, VRDN (b) 300,000 300,000 Illinois Dev. Fin. Auth. Ind. Dev. Rev., VRDN (b): (Kindlon Partners Proj.) 3.85%, LOC Lasalle Bank 900,000 900,000 (MTI Corp. Proj.) Series 1989, 4%, LOC Industrial Bank of Japan 1,000,000 1,000,000 (R.S. Anderson Co. Proj.) 4.35%, LOC Comerica 200,000 200,000 Illinois Gen. Oblig. TRAN 4.75% 4/17/95 1,900,000 1,903,236 4,303,236 INDIANA - 1.3% Indiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds Series 1994 C, 4.40% 7/3/95 (FGIC Insured) (b) 1,000,000 1,000,000 Shelbyville Ind. Econ. Dev. Rev. (Nippisun Indiana Corp. Proj.) 4.10%, LOC Industrial Bank of Japan, VRDN (b) 500,000 500,000 1,500,000 KENTUCKY - 0.9% Cynthiana Ind. Dev. Rev. (E.D. Bullard Co. Proj.) 3.90%, LOC NationsBank, VRDN (b) 1,100,000 1,100,000 LOUISIANA - 2.6% Calcaseiu Parish Pub. Trust Auth. Solid Waste Disp. Rev. (PPG Industries Inc. Proj.) Series 1994, 4%, VRDN (b) 1,000,000 1,000,000 Lake Charles Harbor and Terminal Dist. Port Impt. Rev., 4%, LOC Nat'l. Westminster Bank, VRDN (b) 2,000,000 2,000,000 3,000,000 MAINE - 0.5% Maine Fin. Auth. Econ. Dev. Rev. Series 1992 B, 4%, LOC Sumitomo Bank Ltd., VRDN (b) 640,000 640,000 MARYLAND - 0.8% Maryland Commty. Dev. Administration Participating VRDN, Series PT-36, 3.80% (Liquidity Facility Industrial Bank of Japan) (b) (c) 1,000,000 1,000,000 MASSACHUSETTS - 0.9% Massachusetts Gen. Oblig. BAN Series 1994 A, 5% 6/15/95 1,000,000 1,002,863 MICHIGAN - 1.0% Michigan Strategic Fund Ltd. Oblig. Rev. (Ultimate Hydroforming Inc. Proj.) 3.60%, LOC National Bank of Detroit, VRDN (b) 1,200,000 1,200,000 MINNESOTA - 0.8% Osseo Ind. School Dist. Participating VRDN, 3.85% (Liquidity Facility First Bank National) (c) 1,000,000 1,000,000 MISSOURI - 0.9% University of Missouri RAN Series 1994-95A, 4.50% 6/30/95 1,000,000 1,002,554 MONTANA - 0.9% Montana TRAN Series 1994, 5% 6/30/95 1,000,000 1,003,977 NEVADA - 4.8% Clark County Poll Cont. Rev. Bonds (Southern California Edison) (b): Series 1987 A: 3.80%, tender 2/16/95 1,500,000 1,500,000 4%, tender 3/8/95 1,810,000 1,810,000 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED NEVADA - CONTINUED Henderson Pub. Impt. Trust Multi-Family Hsg. Bonds (Victory Village Proj.) 5.90%, tender 3/27/95 (b) $ 1,290,000 $ 1,290,000 Washoe County Wtr. Fac. Rev. Bonds (Sierra Pacific Pwr. County) Series 1990, 3.80%, tender, 2/13/95, LOC Union Bank Switzerland (b) 1,000,000 1,000,000 5,600,000 NEW MEXICO - 1.3% New Mexico Ed. Assistance Fund Student Loan Rev. Series I, 3.75%, VRDN (b) 1,505,000 1,505,000 NEW YORK - 4.4% New York Auth. Gen. Rev. BAN Series 1994, 4.19% 4/14/95 600,000 600,000 New York City: TAN 4.25% 2/15/95 2,000,000 2,000,372 RAN Series A, 4.50% 4/12/95 2,500,000 2,502,807 5,103,179 NORTH CAROLINA - 0.8% Piedmont Triad Arpt. Auth. Spl. Facs. Rev. (Triad Int'l. Maintenance Corp. Proj.) Series 1989, 3.65%, LOC Mellon Bank, VRDN (b) 900,000 900,000 OHIO - 1.3% Dayton Spl. Facs. Rev. Rfdg. (Emery Air Freight Corp. Proj.) Series 1988 D, 4.25%, LOC Mellon Bank, VRDN (b) 1,500,000 1,500,000 PENNSYLVANIA - 9.8% Bucks County Ind. Dev. Auth. Ind. Dev., VRDN (b): (Associates Proj.) Series 1993, 4.15%, LOC Meridian Bank 1,510,000 1,510,000 (Double H Plastics Inc. Proj.) Series 1993, 4.15%, LOC Meridian Bank NA 2,445,000 2,445,000 Carbon County Ind. Dev. Auth. Resource Recovery Bonds (Panther Creek Partners Proj.) 4%, tender 3/16/95, LOC Nat'l. Westminster Bank (b) 1,060,000 1,060,000 Northumberland County Ind. Dev. Resource Recovery (Foster Wheeler Mt. Carmel Inc.) Series 1987 B, 3.85%, LOC Union Bank of Switzerland (b) 200,000 200,000 Pennsylvania Econ. Dev. Fing. Auth. Ind. Dev. Rev. (ASK Foods, Inc.) Series A-1, 3.95%, LOC Pittsburgh Nat'l. Bank, VRDN (b) 535,000 535,000 Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN (b): (Kaminski Lumber Proj.) Series 1989 A6, 3.95%, LOC Pittsburgh Nat'l. Bank 875,000 875,000 (Port Erie Plastics Proj.) Series 1989 D9, 3.95%, LOC Pittsburgh Nat'l. Bank 80,000 80,000 Pennsylvania Higher Ed. Assistance Agcy. Student Loan Rev. Series 1994 A, 3.65%, LOC Student Loan Marketing Assoc., VRDN (b) 3,700,000 3,700,000 Philadelphia TRAN Series 1994-95D, 4.75% 6/15/95, LOC Morgan Guaranty Trust Co. 1,000,000 1,003,188 11,408,188 SOUTH CAROLINA - 3.7% South Carolina Jobs Econ. Dev. Auth. Rev., VRDN (b): (Elec. City Printing Proj.) 3.85%, LOC South Carolina National Bank 3,300,000 3,300,000 (Wellman Inc. Proj.) Series 92, 4.30%, LOC Wachovia Bank 1,000,000 1,000,000 4,300,000 TENNESSEE - 5.1% Cookeville Ind. Dev. Board Ind. Dev. Rev. (Delbar Products Inc. Proj.) 3.95%, LOC PNC Bank, VRDN (b) 1,300,000 1,300,000 Morristown Ind. Rev., VRDN (b): (Lakeway Container Inc. Proj.) Series 1993, 4.20%, LOC First Tennessee Bank, NA 2,500,000 2,500,000 (Tuff Torq Corp. Proj.) Series 1989, 4.20%, LOC Bank of Tokyo 1,450,000 1,450,000 Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990, 3.80%, LOC Trust Company Bank of Georgia, VRDN (b) 685,000 685,000 5,935,000 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED TEXAS - 8.1% Brazos River Harbor Navigation Dist. of Brazoria County Rev. Bonds (b): (Dow Chemical): Series 1988: 4%, tender 3/10/95 $ 1,730,000 $ 1,730,000 4.30%, tender 4/13/95 1,000,000 1,000,000 Series 1992, 3.80%, tender 2/16/95 1,000,000 1,000,000 Greater East Texas Higher Ed. Auth. Student Loan Rev., Series 1988 A, 3.80%, BPA Citibank (AMBAC Insured) VRDN (b) 300,000 300,000 Gulf Coast Waste Disp. Auth. Poll. Cont. (Amoco Oil Co.) 4.30%, VRDN (b) 1,000,000 1,000,000 Houston Airport Sys. Series 1993 A, CP (b): 3.65% 2/7/95, LOC Canadian Imperial Bank 1,000,000 1,000,000 3.90% 2/10/95, LOC Canadian Imperial Bank 1,000,000 1,000,000 Texas Gen. Oblig. TRAN 5% 8/31/95 2,000,000 2,002,914 Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev., VRDN (b): (Primecrest Ltd. Proj.): Series 1990 A, 3.75%, LOC Algemene Bank 300,000 300,000 Series 1990 B, 3.75%, LOC Algemene Bank 200,000 200,000 9,532,914 UTAH - 1.4% Intermountain Pwr. Agcy. Participating VRDN, Series BT-49, 4.125% (Liquidity Facility Bankers Trust Co.) (c) 1,698,300 1,698,300 VIRGINIA - 6.1% Halifax County Ind. Dev. Auth. Poll. Cont. Rev. Bonds (VA Elec. Pwr. Co.) Series 1992,3.80%, tender 3/13/95 (b) 2,000,000 2,000,000 Mecklenburg County Ind. Auth. (American Bldgs. Co. Proj.) 4.05%, LOC Lasalle Nat'l. Bank, VRDN (b) 1,700,000 1,700,000 Virginia Hsg. Dev. Auth. Mtg. Bonds Series 1993-I, 4.20%, tender 5/11/95 (b) 2,000,000 2,000,000 Virginia Hsg. Dev. Auth. Participating VRDN, Series PA-80B, 3.80% (Liquidity Facility Merrill Lynch) (b) (c) 1,480,000 1,480,000 7,180,000 WASHINGTON - 6.4% Algona Econ. Dev. Corp. Ind. Rev. (Aitchison Family Partnership) Series 1992, 3.90%, LOC Wells Fargo Bank, VRDN (b) 2,740,000 2,740,000 Port Angeles Ind. Dev. Corp. (Daishowa America Proj.) Series 1991, 3.90%, LOC Industrial Bank of Japan, VRDN (b) 200,000 200,000 Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev. (Weyerhaeuser Co. Proj.) Series 1993, 4.08%, VRDN 2,000,000 2,000,000 Port of Grays Harbor Solid Waste Fac. Rev. (Pacific Veneer, Weyerhaeuser Co.) Series 1993, 4.10%, VRDN, (b) 2,500,000 2,500,000 7,440,000 WEST VIRGINIA - 1.3% Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.) Series 1988, 4.20%, LOC Svenska Handelsbanken, VRDN (b) 1,500,000 1,500,000 WISCONSIN - 4.1% Appleton Ind. Dev. Rev. (Pensar Corp. Proj.) Series 1993, 4%, LOC Bank One, Milwaukee, VRDN (b) 1,080,000 1,080,000 Racine Ind. Dev. Rev. (Burlington Graphic Sys.) Series 1994, 4%, LOC Bank One, Milwaukee, VRDN (b) 1,835,000 1,835,000 Wisconsin Gen. Oblig. BAN Series 1995 A, 5% 3/1/95 900,000 900,000 Wisconsin TRAN Series 1994, 4.50% 6/15/95 1,000,000 1,002,193 4,817,193 PRINCIPAL VALUE AMOUNT (NOTE 1) MUNICIPAL SECURITIES (a) - CONTINUED WYOMING - 3.3% Gillette Poll. Cont. Rev. Bonds (Campbell Co.) Series 1988, 3.75%, tender 2/9/95, LOC Deutsche Bank $ 2,500,000 $ 2,500,000 Sweetwater County Env. Impt. Rev. Bonds (Pacific Corp. Proj.) Series 1990 A, 4.20%, tender 2/21/95, LOC Nat'l. Westminster Bank 1,400,000 1,400,000 3,900,000 TOTAL INVESTMENTS - 100% $ 116,865,899 Total Cost for Income Tax Purposes - $116,865,899 SECURITY TYPE ABBREVIATIONS: BAN - Bond Anticipation Notes CP - Commercial Paper RAN - Revenue Anticipation Notes TAN - Tax Anticipation Notes TRAN - Tax & Revenue Anticipation Notes VRDN - Variable Rate Demand Notes LEGEND: (a) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. (b) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. (c) Provides evidence of ownership in one or more underlying municipal bonds. INCOME TAX INFORMATION: At July 31, 1994, the fund had a capital loss carryforward of approximately $13,000 of which $200, $5,600, $2,200 and $5,000 will expire on July 31, 1999, 2000, 2001 and 2002, respectively. MUNICIPAL MONEY MARKET PORTFOLIO FINANCIAL STATEMENTS Statement of Assets and Liabilities
January 31, 1995 (Unaudited) ASSETS Investment in securities, at value - See accompanying schedule $ 116,865,899 Cash 172,050 Interest receivable 898,300 TOTAL ASSETS 117,936,249 LIABILITIES Share transactions in process $ 2,069,737 Dividends payable 3,665 Accrued management fee 49,242 Other payables and accrued expenses 75,125 TOTAL LIABILITIES 2,197,769 NET ASSETS $ 115,738,480 Net Assets consist of: Paid in capital $ 115,749,242 Accumulated net realized gain (loss) on investments (10,762) NET ASSETS, for 115,749,242 shares outstanding $ 115,738,480 NET ASSET VALUE, offering price and redemption price per share ($115,738,480 (divided by) 115,749,242 shares) $1.00
Statement of Operations
Six Months Ended January 31, 1995 (Unaudited) INTEREST INCOME $ 2,235,359 EXPENSES Management fee $ 307,922 Transfer agent, accounting and custodian fees and expenses 36,864 Distribution fees 215,546 Non-interested trustees' compensation 747 Registration fees 123,704 Audit 10,536 Legal 2,510 Miscellaneous 8,801 Total expenses before 706,630 reductions Expense reductions (96,946) 609,684 NET INTEREST INCOME 1,625,675 NET REALIZED GAIN (LOSS) ON 2,161 INVESTMENTS NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,627,836
Statement of Changes in Net Assets
SIX MONTHS YEAR ENDED ENDED JANUARY 31, 1995 JULY 31, (UNAUDITED) 1994 INCREASE (DECREASE) IN NET ASSETS Operations $ 1,625,675 $ 2,358,367 Net interest income Net realized gain (loss) 2,161 (4,997) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,627,836 2,353,370 Dividends to shareholders from net interest income (1,625,675) (2,358,367) Share transactions at net asset value of $1.00 per share 202,906,601 502,816,505 Proceeds from sales of shares Reinvestment of dividends from net interest income 1,565,702 2,273,420 Cost of shares redeemed (205,233,107) (504,861,716) Net increase (decrease) in net assets and shares resulting from share transactions (760,804) 228,209 TOTAL INCREASE (DECREASE) IN NET ASSETS (758,643) 223,212 NET ASSETS Beginning of period 116,497,123 116,273,911 End of period $ 115,738,480 $ 116,497,123
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED JULY 31, NOVEMBER 29, 1990 ENDED (COMMENCEMENT JANUARY 31, 1995 OF OPERATIONS) TO JULY 31, (UNAUDITED) 1994 1993 1992 1991 SELECTED PER-SHARE DATA Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 Income from Investment Operations .013 .018 .019 .031 .028 Net interest income Less Distributions (.013) (.018) (.019) (.031) (.028) From net interest income Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 1.34% 1.80% 1.96% 3.14% 2.82% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 115,738 $ 116,497 $ 116,274 $ 68,497 $ 19,578 Ratio of expenses to average net assets .99%A .98% .95% .95% .95%A Ratio of expenses to average net assets before 1.15%A 1.04% 1.23% 1.40% 2.63%A expense reductions Ratio of net interest income to average net assets 2.64%A 1.78% 1.92% 2.89% 3.97%A
A ANNUALIZED B 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. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS. NOTES TO FINANCIAL STATEMENTS FOR THE PERIOD ENDED JANUARY 31, 1995 (UNAUDITED) 11. 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 Delaware business trust. Each fund is authorized to issue an unlimited number of shares. 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. 12. 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 affiliated entities of FMR, may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements that mature in 60 days or less from the date of purchase, and 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 $19,000,000 or 2.5% of net assets for the Money Market fund. 13. 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, 1995 and due February 1,1995. The maturity values of the joint trading account investments were $111,017,892 at 5.80% and $24,766,004 at 5.82%, respectively. The investments in repurchase agreements through the joint trading account are summarized as follows: 3. JOINT TRADING ACCOUNT - CONTINUED 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 5.80% 11 22.9% $4,611,000,000 $4,611,743,265 $4,706,138,025 0%-12.50% 2/2/95-11/15/24 5.82% 5 34.5% $580,000,000 $580,093,778 $591,966,560 0%-12.50% 2/2/95-11/15/24 14. 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 up to .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 $875,147, $393,704 and $158,040 for the Money Market, U.S. Government and Municipal Money Market funds, respectively. TRANSFER AGENT AND ACCOUNTING FEES. 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. During the period August 1, 1994 to December 31, 1994, FIIOC received fees based on the type, size, number of accounts and the number of transactions made by shareholders. Effective January 1, 1995, the Board of Trustees approved a revised transfer agent fee contract pursuant to which FIIOC receives an annual fee and an asset-based fee that vary according to account size. 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 $11,989 for the Municipal Money Market fund. 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 $14,994 for the Municipal Money Market fund. 15. EXPENSE REDUCTIONS. FMR voluntarily agreed to reimburse the funds' operating expenses (excluding interest, taxes, brokerage commissions and extraordinary expenses) above an annual rate of .99% of average net assets. For the period, the reimbursement reduced expenses by $369,461, $105,829 and $96,946 for 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 FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. 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 Leland Barron, VICE PRESIDENT Fred L. Henning, Jr., VICE PRESIDENT Robert Litterst, VICE PRESIDENT Sarah Zenoble, VICE PRESIDENT Thomas D. Maher, ASSISTANT VICE PRESIDENT Arthur S. Loring, SECRETARY Stephen P. Jonas, TREASURER John H. Costello, ASSISTANT TREASURER Leonard M. Rush, ASSISTANT TREASURER 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-3-95S -----END PRIVACY-ENHANCED MESSAGE-----