-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U+p4HCzK6GdhOScBcRtNKUjg0mNyj6jBYcVS6t8b8cs0gyZNqE935PUQIgbDQAe6 Vd0H0GClUAC9dHkt33r1WA== 0000028540-97-000026.txt : 19970311 0000028540-97-000026.hdr.sgml : 19970311 ACCESSION NUMBER: 0000028540-97-000026 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970131 FILED AS OF DATE: 19970310 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: 97553898 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 (registered trademark) CAPITAL RESERVES PORTFOLIOS SEMIANNUAL REPORT JANUARY 31, 1997 CAPR-SANN-0397 27873 CHECK PAGE NUMBERS !!! CONTENTS SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS CAPITAL RESERVES PORTFOLIOS: MONEY MARKET PORTFOLIO 3 U.S. GOVERNMENT PORTFOLIO 12 MUNICIPAL MONEY MARKET PORTFOLIO 17 NOTES TO THE FINANCIAL STATEMENTS 28 To reduce expenses and demonstrate respect for our environment, we have initiated a project through which we will begin eliminating duplicate copies of most financial reports and prospectuses to most households, even if they have more than one account in the fund. If additional copies of financial reports, prospectuses or historical account information are needed, please call 1-800-544-6666. FUND GOALS: MONEY MARKET PORTFOLIO AND U.S. GOVERNMENT PORTFOLIO EACH SEEK TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT WITH THE PRESERVATION OF PRINCIPAL AND LIQUIDITY BY INVESTING IN HIGH-QUALITY, SHORT-TERM MONEY MARKET SECURITIES. MONEY MARKET PORTFOLIO INVESTS IN HIGH-QUALITY U.S. DOLLAR DENOMINATED SECURITIES OF DOMESTIC AND FOREIGN ISSUERS. U.S. GOVERNMENT PORTFOLIO INVESTS ONLY IN OBLIGATIONS ISSUED OR GUARANTEED AS TO PRINCIPAL AND INTEREST BY THE U.S. GOVERNMENT. MUNICIPAL MONEY MARKET PORTFOLIO SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME, EXEMPT FROM FEDERAL INCOME TAXES, AS IS CONSISTENT WITH THE PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING IN HIGH-QUALITY, SHORT-TERM MUNICIPAL SECURITIES. INVESTMENTS IN THE FUNDS ARE NEITHER INSURED NOR GUARANTEED BY THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUNDS WILL MAINTAIN A STABLE $1.00 SHARE PRICE. 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, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED. NEITHER THE FUNDS NOR NATIONAL FINANCIAL SERVICES CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL THE APPROPRIATE NUMBER LISTED BELOW. READ THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY. RETIREMENT PLAN LEVEL ACCOUNTS CORPORATE CLIENTS 1-800-962-1375 "NOT FOR PROFIT" CLIENTS 1-800-343-0860 FINANCIAL AND OTHER INSTITUTIONS NATIONWIDE 1-800-843-3001 CAPITAL RESERVES: MONEY MARKET PORTFOLIO INVESTMENTS JANUARY 31, 1997 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities BANKERS' ACCEPTANCES - 0.4% DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) DOMESTIC BANKERS' ACCEPTANCES Chase Manhattan Bank 3/6/97 5.46% $ 6,002,696 $ 5,972,983 CERTIFICATES OF DEPOSIT - 34.3% DOMESTIC CERTIFICATES OF DEPOSIT - 2.9% Bankers Trust Company 2/27/97 5.50 5,000,000 4,999,363 Chase Manhattan Bank (USA) 3/10/97 5.77 10,000,000 10,000,000 7/28/97 5.55 5,000,000 5,000,000 CoreStates Capital Corp. 2/10/97 5.46 (a) 10,000,000 9,997,436 Mellon Bank, N.A. 3/4/97 5.82 5,000,000 5,000,000 Morgan Guaranty Trust, NY 8/12/97 5.78 4,000,000 3,998,805 8/12/97 5.80 5,000,000 4,998,166 43,993,770 CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.5% ABN-AMRO Bank 3/10/97 5.40 15,000,000 15,000,000 3/18/97 5.80 3,000,000 2,998,464 12/23/97 5.70 4,000,000 3,998,290 21,996,754 NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 20.4% Bank of Tokyo - Mitsubishi Ltd. 2/24/97 5.45 3,000,000 3,000,000 3/3/97 5.50 9,000,000 9,000,000 3/20/97 5.50 2,000,000 2,000,296 5/5/97 5.60 4,000,000 4,000,000 Banque Nationale de Paris 2/26/97 5.40 2,000,000 1,999,940 Bayerische Hypotheken-und Weschel 4/7/97 5.40 8,000,000 8,000,000 Bayerische Landesbank Girozentrale 4/22/97 5.58 (a) 8,000,000 8,000,000 Bayerische Vereinsbank A.G. 2/3/97 5.57 25,000,000 25,000,000 Caisse Nationale de Credit Agricole 2/18/97 5.41 8,000,000 8,000,000 6/16/97 5.50 5,000,000 5,000,000 Den Danske Bank A/S 7/28/97 5.52 5,000,000 5,001,175 DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED Landesbank Hessen - Thuringen 9/5/97 6.20% $ 15,000,000 $ 15,000,847 9/11/97 6.11 16,000,000 15,998,142 National Bank of Canada 2/24/97 5.40 5,000,000 5,000,000 National Westminster Bank, PLC 2/18/97 5.42 5,000,000 5,000,000 3/10/97 5.43 15,000,000 15,000,000 5/1/97 5.42 3,000,000 3,000,121 Norddeutsche Landesbank 2/28/97 5.55 25,000,000 25,002,861 Rabobank Nederland, N.V. 3/19/97 5.46 1,000,000 999,984 Royal Bank of Canada 8/13/97 5.80 5,000,000 4,998,157 Sanwa Bank, Ltd. 2/28/97 5.50 3,000,000 3,000,011 3/27/97 5.71 2,000,000 2,000,000 Societe Generale, France 3/28/97 5.44 1,000,000 999,962 5/22/97 5.53 8,000,000 8,000,782 6/10/97 5.53 5,000,000 5,006,116 7/28/97 5.55 18,000,000 18,000,000 Sumitomo Bank, Ltd. 2/18/97 5.49 1,000,000 1,000,003 2/18/97 5.50 5,000,000 5,000,000 3/6/97 5.57 3,000,000 3,000,000 4/3/97 5.60 2,000,000 2,000,000 Swiss Bank Corp. 2/3/97 5.33 4,000,000 4,000,003 2/10/97 5.35 5,000,000 5,000,000 4/21/9 5.41 13,000,000 13,000,000 4/23/97 5.41 12,000,000 12,000,000 5/19/97 5.40 25,000,000 25,000,000 7/22/97 5.53 13,000,000 13,000,000 Westdeutsche Landesbank 2/5/97 5.40 5,000,000 5,000,000 3/10/97 5.40 3,000,000 3,000,000 4/9/97 5.45 4,000,000 4,000,000 4/21/97 5.50 3,000,000 3,000,000 304,008,400 LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 9.5% ABN-AMRO Bank 3/27/97 5.60 35,000,000 35,000,511 Abbey National, Treasury Services 2/14/97 5.40 3,000,000 2,999,961 2/18/97 5.42 4,000,000 4,000,000 CERTIFICATES OF DEPOSITS - CONTINUED DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - CONTINUED Abbey National, Treasury Services - continued 2/28/97 5.40% $ 2,000,000 $ 1,999,906 3/17/97 5.43 20,000,000 20,000,000 4/16/97 5.50 5,000,000 4,999,478 6/10/97 5.51 10,000,000 10,011,784 Banco Bilbao Vizcaya, S.A. 3/6/97 5.40 4,000,000 3,999,908 Bank of Nova Scotia 3/6/97 5.40 10,000,000 10,000,000 Bank of Tokyo - Mitsubishi Ltd. 2/18/97 5.46 3,000,000 2,999,995 2/25/97 5.46 3,000,000 3,000,000 3/3/97 5.48 4,000,000 4,000,033 Banque Nationale de Paris 2/13/97 5.56 5,500,000 5,500,032 3/21/97 5.45 2,000,000 2,000,605 Bayerische Hypotheken-und Weschel 3/10/97 5.80 4,000,000 4,000,000 Bayerische Landesbank Girozentrale 7/7/97 5.56 6,000,000 5,998,662 Bayerische Vereinsbank A.G. 3/11/97 5.42 7,000,000 7,000,073 Canadian Imperial Bank of Commerce 3/19/97 5.45 2,000,000 2,000,000 Sumitomo Bank, Ltd. 2/21/97 5.49 2,000,000 2,000,011 Westdeutsche Landesbank 4/7/97 5.40 5,000,000 5,000,089 Westpac Banking Corp. 3/24/97 5.52 5,000,000 5,001,403 141,512,451 TOTAL CERTIFICATES OF DEPOSIT 511,511,375 COMMERCIAL PAPER - 49.6% ABN-AMRO North America Finance, Inc. 2/28/97 5.68 12,800,000 12,746,912 A.H. Robins Company, Inc. 2/27/97 5.40 1,000,000 996,151 AVCO Financial Services 2/10/97 5.39 10,000,000 9,986,725 Abbey National, North America 3/10/97 5.76 4,000,000 3,976,978 American Express Credit Corp. 3/19/97 5.37 50,000,000 49,662,666 DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) American Home Products 2/5/97 5.38% $ 2,108,000 $ 2,106,744 2/24/97 5.40 5,000,000 4,982,990 Asset Securitization Coop. Corp. 2/18/97 5.43 5,000,000 4,987,321 2/18/97 5.44 3,000,000 2,992,365 2/25/97 5.56 25,000,000 24,908,333 2/26/97 5.44 1,000,000 996,264 Associates Corp. of North America 3/5/97 5.40 25,000,000 24,881,555 4/2/97 5.50 10,000,000 9,909,750 BHF Finance (Delaware), Inc. 2/19/97 5.50 4,000,000 3,989,100 BP America, Inc. 2/13/97 5.32 2,000,000 1,996,467 Bank of Nova Scotia 3/17/97 5.40 5,000,000 4,967,489 Bayerische Vereinsbank A.G. 2/18/97 5.42 5,000,000 4,987,439 Bear Stearns Cos., Inc. 2/14/97 5.41 3,000,000 2,994,204 2/26/97 5.38 4,000,000 3,985,264 Beneficial Corp. 3/17/97 5.48 5,000,000 4,966,939 CIESCO, L.P. 2/20/97 5.33 10,000,000 9,972,028 CIT Group Holdings, Inc. 3/17/97 5.48 10,000,000 9,933,878 Caisse d'Amortissement de la Dette Sociale 2/24/97 5.42 15,000,000 14,949,016 2/24/97 5.43 5,000,000 4,982,973 2/28/97 5.75 11,000,000 10,953,800 6/3/97 6.01 10,000,000 9,805,139 Caisse des Depots et Consignations 2/19/97 5.41 2,000,000 1,994,680 Chase Manhattan Corp. 4/15/97 5.48 10,000,000 9,890,500 Cheltenham & Gloucester PLC 2/28/97 5.41 10,000,000 9,960,100 3/11/97 5.47 5,000,000 4,971,764 Chrysler Financial Corporation 2/24/97 5.60 5,000,000 4,982,303 3/11/97 5.48 3,000,000 2,982,773 3/12/97 5.49 2,000,000 1,988,191 Citibank Credit Card Master Trust I (Dakota Certificate Program) 2/6/97 5.41 1,000,000 999,258 2/13/97 5.40 7,000,000 6,987,540 COMMERCIAL PAPER - CONTINUED DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) Citibank Credit Card Master Trust I (Dakota Certificate Program) - continued 2/20/97 5.38% $ 3,000,000 $ 2,991,529 2/20/97 5.42 2,000,000 1,994,364 2/21/97 5.40 5,050,000 5,035,047 Commercial Credit Corp. 2/26/97 5.52 5,000,000 4,981,007 CoreStates Capital Corp. 2/10/97 5.43(a) 5,000,000 5,000,000 Den Danske Corp., Inc. 2/18/97 5.45 10,000,000 9,974,524 4/15/97 5.43 3,000,000 2,967,454 Eiger Capital Corp. 3/19/97 5.40 25,000,000 24,829,097 Electronic Data Systems 2/14/97 5.58 5,000,000 4,990,015 Enterprise Funding Corp. 2/19/97 5.43 2,000,000 1,994,630 2/20/97 5.49 5,000,000 4,985,671 2/24/97 5.46 2,000,000 1,993,100 Fina Oil and Chemical Company 2/24/97 5.56 10,000,000 9,964,861 Ford Motor Credit Corp. 3/11/97 5.38 25,000,000 24,860,139 3/17/97 5.66 10,000,000 9,932,778 GTE Corp. 2/3/97 5.37 3,000,000 2,999,107 2/13/97 5.40 4,000,000 3,992,840 Generale Bank 4/10/97 5.44 6,000,000 5,939,707 6/19/97 5.53 10,000,000 9,793,767 7/30/97 5.53 5,000,000 4,866,247 General Electric Capital Corp. 2/19/97 5.42 15,000,000 14,960,100 3/6/97 5.53 3,000,000 2,984,957 3/12/97 5.76 7,000,000 6,957,533 3/18/97 5.39 15,000,000 14,900,813 5/28/97 5.44 15,000,000 14,743,833 7/28/97 5.52 12,000,000 11,683,170 General Electric Co. 3/3/97 5.37 3,000,000 2,986,750 General Motors Acceptance Corp. 2/20/97 5.70 3,000,000 2,991,220 2/24/97 5.71 3,000,000 2,989,362 2/25/97 5.71 5,000,000 4,981,500 3/3/97 5.45 10,000,000 9,955,250 3/31/97 5.70 5,000,000 4,955,372 4/14/97 5.63 5,000,000 4,945,250 4/15/97 5.63 3,000,000 2,966,694 5/7/97 5.51 7,000,000 6,900,989 DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) 6/23/97 5.62% $ 10,000,000 $ 9,784,436 6/25/97 5.62 5,000,000 4,890,600 Glaxo Wellcome, PLC 2/5/97 5.37 1,683,000 1,682,000 Goldman Sachs Group, L.P. (The) 4/29/97 5.50 10,000,000 9,870,709 5/12/97 5.45 8,000,000 7,882,222 Halifax Building Society 3/13/97 5.40 5,000,000 4,970,556 Household Finance Corp. 2/19/97 5.38 6,000,000 5,984,070 IBM Credit Corp. 3/3/97 5.39 2,000,000 1,991,167 3/12/97 5.38 3,000,000 2,982,775 J.C. Penney Funding Corp. 2/10/97 5.50 1,000,000 998,637 2/13/97 5.50 1,000,000 998,183 MCI Communications Corp. 2/20/97 5.34 10,000,000 9,971,922 Matterhorn Capital Corp. 2/18/97 5.40 3,363,000 3,354,472 Merrill Lynch & Co., Inc. 3/11/97 5.76 3,000,000 2,982,267 3/12/97 5.68 2,000,000 1,988,029 5/15/97 5.44 10,000,000 9,848,361 7/28/97 5.54 10,000,000 9,734,992 Morgan Stanley Group, Inc. 2/4/97 5.40 3,000,000 2,998,670 2/10/97 5.40 3,000,000 2,996,010 2/10/97 5.40 5,000,000 4,993,350 National Australia Funding, Inc. 3/13/97 5.60 5,000,000 4,969,888 Nationwide Building Society 2/25/97 5.45 1,000,000 996,433 2/27/97 5.35 4,300,000 4,283,478 3/6/97 5.40 10,000,000 9,951,188 New Center Asset Trust 2/19/97 5.63 3,000,000 2,991,780 3/17/97 5.39 4,000,000 3,974,089 Norwest Financial 3/12/97 5.39 5,000,000 4,971,292 PG & E 2/19/97 5.36 2,500,000 2,493,338 PHH Corp. 2/6/97 5.43 1,000,000 999,255 2/7/97 5.43 1,000,000 999,104 2/14/97 5.51 5,000,000 4,990,160 2/20/97 5.37 2,990,000 2,981,557 Preferred Receivables Funding Corp. 2/7/97 5.37 4,000,000 3,996,433 COMMERCIAL PAPER - CONTINUED DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) Preferred Receivables Funding Corp. - continued 2/20/97 5.67% $ 2,100,000 $ 2,093,771 2/25/97 5.53 3,000,000 2,989,060 Sears Roebuck Acceptance Corp. 3/14/97 5.44 15,000,000 14,908,007 Southern Company Group 3/12/97 5.40 2,000,000 1,988,409 4/7/97 5.44 3,000,000 2,970,913 Textron, Inc. 2/10/97 5.53 2,000,000 1,997,250 2/12/97 5.50 2,000,000 1,996,658 3/4/97 5.50 1,000,000 995,290 Unifunding, Inc. 2/7/97 5.73 3,500,000 3,496,674 3/6/97 5.41 4,000,000 3,980,347 4/28/97 5.43 3,000,000 2,961,658 Westpac Capital Corp. 3/13/97 5.70 10,000,000 9,938,444 TOTAL COMMERCIAL PAPER 740,182,180 FEDERAL AGENCIES - 4.7% FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 0.3% 3/4/97 5.40 5,000,000 4,996,351 FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 4.4% 2/3/97 5.42 25,000,000 24,986,863 3/9/97 5.40 30,000,000 29,977,761 3/13/97 5.43 10,000,000 9,993,434 64,958,058 TOTAL FEDERAL AGENCIES 69,954,409 BANK NOTES - 3.3% CoreStates Capital Corp. 2/28/97 5.41 (a) 25,000,000 25,000,000 First National Bank of Boston 3/6/97 5.44 13,000,000 13,000,000 First of America Bank - Michigan 6/4/97 5.44 5,000,000 4,999,321 DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) Key Bank of New York 2/3/97 5.21%(a) $ 6,000,000 $ 5,997,986 TOTAL BANK NOTES 48,997,307 MASTER NOTES (A) - 2.1% Goldman Sachs Group, L.P. (The) (c) 2/8/97 5.50 7,000,000 7,000,000 J.P. Morgan Securities 2/7/97 5.49 10,000,000 10,000,000 Norwest Corp. 2/1/97 5.46 7,000,000 7,000,000 2/3/97 5.44 7,000,000 7,000,000 TOTAL MASTER NOTES 31,000,000 MEDIUM-TERM NOTES (A) - 1.5% General Motors Acceptance Corp. 2/1/97 5.50 6,000,000 6,000,000 2/13/97 5.41 3,000,000 2,999,934 Merrill Lynch & Co., Inc. 2/18/97 5.45 5,000,000 4,999,465 Norwest Corp. 4/22/97 5.55 8,000,000 8,000,000 TOTAL MEDIUM-TERM NOTES 21,999,399 SHORT-TERM NOTES (A)(B) - 1.7% Liquid Asset Backed Securities Trust (1996 - 2) 2/3/97 5.53 8,000,000 8,000,000 SMM Trust (1996-I) 2/28/97 5.49 10,000,000 10,000,000 SMM Trust (1996-P) 2/18/97 5.51 7,500,000 7,500,000 TOTAL SHORT-TERM NOTES 25,500,000 TIME DEPOSITS - 0.6% Sumitomo Bank, Ltd. 2/24/97 5.50 10,000,000 10,000,000 REPURCHASE AGREEMENTS - 1.8% MATURITY VALUE AMOUNT (NOTE 1) In a joint trading account (U.S. Treasury Obligations) dated 1/31/97 due 2/3/97: At 5.55% $ 9,189,249 $ 9,185,000 At 5.57% 17,119,949 17,112,000 TOTAL REPURCHASE AGREEMENTS 26,297,000 TOTAL INVESTMENTS - 100% $ 1,491,414,653 Total Cost for Income Tax Purposes $ 1,491,414,653 LEGEND (1.) 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. (2.) 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 $25,500,000 or 1.7% of net assets. (3.) Restricted security; subject to resale restrictions. INCOME TAX INFORMATION At July 31, 1996, the fund had a capital loss carryforward of approximately $79,000 which will expire on July 31, 2002. CAPITAL RESERVES: MONEY MARKET PORTFOLIO FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997 (UNAUDITED) ASSETS Investment in securities, at value (including repurchase agreements of $26,297,000) - $ 1,491,414,653 See accompanying schedule Interest receivable 8,836,047 TOTAL ASSETS 1,500,250,700 LIABILITIES Payable for investments purchased $ 13,000,000 Share transactions in process 3,632,097 Distributions payable 235,224 Accrued management fee 478,325 Other payables and accrued expenses 782,639 TOTAL LIABILITIES 18,128,285 NET ASSETS $ 1,482,122,415 Net Assets consist of: Paid in capital $ 1,482,132,801 Accumulated net realized gain (loss) on investments (10,386) NET ASSETS, for 1,482,132,801 shares outstanding $ 1,482,122,415 NET ASSET VALUE, offering price and redemption price per share $1.00 ($1,482,122,415 (divided by) 1,482,132,801 shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED) INTEREST INCOME $ 37,374,101 EXPENSES Management fee $ 3,366,139 Transfer agent fees 1,708,778 Distribution fees 2,352,220 Accounting fees and expenses 75,442 Non-interested trustees' compensation 2,284 Custodian fees and expenses 18,105 Registration fees 141,740 Audit 5,655 Legal 4,837 Miscellaneous 4,542 Total expenses before reductions 7,679,742 Expense reductions (1,015,168) 6,664,574 NET INTEREST INCOME 30,709,527 NET REALIZED GAIN (LOSS) ON INVESTMENTS 55,978 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 30,765,505
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED JANUARY 31,1997 JULY 31, (UNAUDITED) 1996 INCREASE (DECREASE) IN NET ASSETS Operations $ 30,709,527 $ 51,509,103 Net interest income Net realized gain (loss) 55,978 52,325 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 30,765,505 51,561,428 Distributions to shareholders from net interest income (30,709,527) (51,509,103) Share transactions at net asset value of $1.00 per share 3,830,161,525 6,814,075,501 Proceeds from sales of shares Reinvestment of distributions from net interest income 29,498,121 49,162,495 Cost of shares redeemed (3,608,140,564) (6,608,717,752) NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS 251,519,082 254,520,244 TOTAL INCREASE (DECREASE) IN NET ASSETS 251,575,060 254,572,569 NET ASSETS Beginning of period 1,230,547,355 975,974,786 End of period $ 1,482,122,415 $ 1,230,547,355
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED JULY 31, ENDED JANUARY 31, 1997 (UNAUDITED) 1996 1995 1994 1993 1992 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 .047 .048 .027 .025 .041 Net interest income Less Distributions From net interest income (.023) (.047) (.048) (.027) (.025) (.041) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 2.32% 4.80% 4.86% 2.72% 2.57% 4.13% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 1,482,122 $ 1,230,547 $ 975,975 $ 680,149 $ 601,498 $ 354,189 Ratio of expenses to average net assets .99% A, .99% .99% .98% .95% .82% C C C C C C Ratio of net interest income to average 4.56% A 4.69% 4.80% 2.70% 2.52% 3.81% net assets
A ANNUALIZED B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS). CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO INVESTMENTS JANUARY 31, 1997 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities U.S. TREASURY OBLIGATIONS - 21.8% DUE ANNUALIZED YIELD AT PRINCIPAL VALUE DATE TIME OF PURCHASE AMOUNT (NOTE 1) U.S. TREASURY BILLS - 8.4% 7/24/97 5.73% $ 11,000,000 $ 10,713,493 8/21/97 5.63 1,000,000 970,241 8/21/97 5.66 1,000,000 970,129 8/21/97 5.67 4,000,000 3,880,284 9/18/97 5.68 1,000,000 965,777 9/18/97 5.70 3,000,000 2,897,141 9/18/97 5.71 2,000,000 1,931,268 22,328,333 U.S. TREASURY NOTES - 13.4% 5/15/97 5.27 10,000,000 10,033,058 4/30/97 5.30 10,500,000 10,529,190 5/31/97 5.28 3,000,000 3,006,715 5/31/97 5.29 10,000,000 10,021,846 6/30/97 5.30 1,000,000 1,001,150 11/30/97 5.50 1,000,000 997,908 35,589,867 TOTAL U.S. TREASURY OBLIGATIONS 57,918,200 REPURCHASE AGREEMENTS - 78.2% MATURITY VALUE AMOUNT (NOTE 1) In a joint trading account (U.S. Treasury Obligations) dated 1/31/97 due 2/3/97: (Notes 2 and 3) At 5.55% $ 178,082,338 $ 178,000,000 At 5.57% 30,294,057 30,280,000 TOTAL REPURCHASE AGREEMENTS 208,280,000 TOTAL INVESTMENTS - 100% $ 266,198,200 Total Cost for Income Tax Purposes $ 266,198,200 INCOME TAX INFORMATION At July 31, 1996, the fund had a capital loss carryforward of approximately $53,000 of which $3,000, $35,000 and $15,000 will expire on July 31, 2001, 2002, and 2003, respectively. CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997 (UNAUDITED) ASSETS Investment in securities, at value (including repurchase agreements of $208,280,000) - $ 266,198,200 See accompanying schedule Cash 5,826,947 Interest receivable 499,619 TOTAL ASSETS 272,524,766 LIABILITIES Reverse repurchase payable $ 5,827,793 Distributions payable 47,854 Accrued management fee 99,722 Other payables and accrued expenses 133,074 TOTAL LIABILITIES 6,108,443 NET ASSETS $ 266,416,323 Net Assets consist of: Paid in capital $ 266,463,583 Accumulated net realized gain (loss) on investments (47,260) NET ASSETS, for 266,463,583 shares outstanding $ 266,416,323 NET ASSET VALUE, offering price and redemption price per share $1.00 ($266,416,323 (divided by) 266,463,583 shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED) INTEREST INCOME $ 6,295,887 EXPENSES Management fee $ 581,740 Transfer agent fees 247,025 Distribution fees 407,218 Accounting fees and expenses 20,924 Custodian fees and expenses 1,430 Registration fees 105,870 Audit 5,773 Legal 927 Miscellaneous 392 Total expenses before reductions 1,371,299 Expense reductions (219,472) 1,151,827 NET INTEREST INCOME 5,144,060 NET REALIZED GAIN (LOSS) ON INVESTMENTS 4,085 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 5,148,145
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED JANUARY 31, 1997 JULY 31, (UNAUDITED) 1996 INCREASE (DECREASE) IN NET ASSETS Operations $ 5,144,060 $ 9,545,911 Net interest income Net realized gain (loss) 4,085 2,207 NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 5,148,145 9,548,118 Distributions to shareholders from net interest income (5,144,060) (9,545,911) Share transactions at net asset value of $1.00 per share 744,289,653 1,626,194,942 Proceeds from sales of shares Reinvestment of distributions from net interest income 4,823,956 8,864,200 Cost of shares redeemed (683,205,022) (1,636,522,705) NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS 65,908,587 (1,463,563) TOTAL INCREASE (DECREASE) IN NET ASSETS 65,912,672 (1,461,356) NET ASSETS Beginning of period 200,503,651 201,965,007 End of period $ 266,416,323 $ 200,503,651
FINANCIAL HIGHLIGHTS SIX MONTHS ENDED YEARS ENDED JULY 31, JANUARY 31, 1997
(UNAUDITED) 1996 1995 1994 1993 1992 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 .022 .046 .045 .025 .024 .041 Net interest income Less Distributions From net interest income (.022) (.046) (.045) (.025) (.024) (.041) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 2.24% 4.70% 4.64% 2.52% 2.40% 4.15% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 266,416 $ 200,504 $ 201,965 $ 306,261 $ 264,483 $ 308,542 Ratio of expenses to average net assets .99% A, .99% .99% .98% .95% .65% C C C C C C Ratio of net interest income to average 4.42% A 4.62% 4.41% 2.50% 2.39% 3.82% net assets
A ANNUALIZED B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS) . CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO INVESTMENTS JANUARY 31, 1997 (UNAUDITED) Showing Percentage of Total Value of Investments in Securities MUNICIPAL SECURITIES (A) - 100% PRINCIPAL VALUE AMOUNT (NOTE 1) ALABAMA - 1.7% Phenix City Envir. Impt. Rev. Bonds (Mead Coated Board Proj.) Series 1988, 3.50%, tender 2/7/97, LOC ABN-AMRO Bank (b) $ 1,000,000 $ 1,000,000 Roanoke Ind. Dev. Board Ind. Dev. Rev. (Wehadkee/Rock Mills Proj.) Series 1992, 3.70%, LOC SunTrust Bank, VRDN (b) 1,100,000 1,100,000 Talladega Ind. Dev. Rev. (Wehadkee Yarn Mills Proj.) Series 1990, 3.70%, LOC SunTrust Bank, Atlanta, VRDN (b) 400,000 400,000 2,500,000 ARIZONA - 5.6% Arizona Ed. Loan Mktg. Corp. Series 1991 A, 3.65%, LOC Dresdner Bank, A.G., Germany VRDN (b) 900,000 900,000 Coconino County Poll. Cont. Corp. Poll. Cont. Rev. (Arizona Pub. Svc. Co. Navajo Proj.) Series 1994 A, 3.75%, LOC Bank of America NT & SA, VRDN (b) 200,000 200,000 Maricopa County Poll. Cont. Rev. Bonds (Southern California Edison Co.) Series 1985 E, 3.50%, tender 4/7/97 1,000,000 1,000,000 Phoenix Civic Corp. Arpt. Impt. Series 1995, 3.65%, LOC Landesbank Hessen-Thuringen, VRDN (b) 1,000,000 1,000,000 Pima County Ind. Dev. Auth. (Tucson Elec. Pwr. Co. Proj.) Series 1990 A, 3.60%, LOC Bankers Trust Company, VRDN (b) 900,000 900,000 Pima County School Dist. #1 Participating VRDN, Series 1996 D, 3.75% (FGIC Insured) (Liquidity Facility Norwest Bank NA, Minnesota) (c) 1,000,000 1,000,000 Pinal County Ind. Dev. Auth. Ind. Dev. Rev. (Sunbelt Refining Co. LP Proj.) Series 1988, 3.65%, LOC Bankers Trust Company, VRDN (b) 3,400,000 3,400,000 8,400,000 ARKANSAS - 1.7% Clark County Solid Waste Disp. Rev. (Reynolds Metals Co. Proj.) 3.60%, LOC SunTrust Bank Atlanta, VRDN (b) 2,500,000 2,500,000 CALIFORNIA - 3.5% California Gen. Oblig. RAN Series 1996-97, 4.50% 6/30/97 2,300,000 2,305,267 Los Angeles Commty. College Dist. TRAN Series 1996-97, 4.50% 7/1/97 1,000,000 1,001,973 Los Angeles County TRAN Series 1996-97, 4.50% 6/30/97 1,000,000 1,003,052 Ventura County TRAN Series 1996, 4.75% 7/2/97 1,000,000 1,002,931 5,313,223 COLORADO - 1.3% Fort Collins County Ind. Dev. Rev. (Phelps-Tointon Millwork Proj.) Series 1993, 3.70%, LOC Bank One, Milwaukee, VRDN (b) 1,350,000 1,350,000 Larimer County (Ultimate Support Sys.) Series 1995 B, 3.80%, LOC Bank One, Colorado, NA, VRDN (b) 575,000 575,000 1,925,000 DELAWARE - 0.7% Delaware Econ. Dev. Auth. (Waste Recovery Proj.) Series 1996 B, 3.60%, LOC Canadian Imperial Bank of Commerce, VRDN (b) 1,000,000 1,000,000 MUNICIPAL SECURITIES (A) - CONTINUED PRINCIPAL VALUE AMOUNT (NOTE 1) DISTRICT OF COLUMBIA - 0.3% Metro. Washington Arpt. Port. Auth. Rev. Bonds, 3.60%, tender 3/26/97, LOC NationsBank, NA (b) $ 500,000 $ 500,000 FLORIDA - 5.0% Dade County Hsg. Fin. Corp. Participating VRDN, Series 1991 A, 3.79% (Liquidity Facility Bank One, Colorado) (b)(c) 775,000 775,000 Dade County Multi-Family Hsg. Rev. (Biscayne View Apts. Proj.) Series 1993, 3.80% (Commonwealth Life Insurance Co. Guaranteed) VRDN (b) 1,475,000 1,475,000 Florida Local Gov't. Fin. Commission Series A, 3.65% 2/26/97, LOC First Union Nat'l. Bank, CP 500,000 500,000 Jacksonville Health Fac. Auth. Participating VRDN, Series 1996 M, 3.60% (Liquidity Facility Caisse des Depots et Cosignations) (c) 1,000,000 1,000,000 Okeechobee County Solid Waste Rev. (Chambers Waste Sys.) Series 1992, 3.85%, LOC Morgan Guaranty Trust NY, VRDN (b) 800,000 800,000 Sunshine State Governmental Fing. Commission: Bonds Series 1986, 3.55%, tender 3/7/97 1,000,000 1,000,000 Series 1994, 3.60% 2/19/97, CP 2,000,000 2,000,000 7,550,000 GEORGIA - 2.3% Brunswick & Glynn County Dev. Auth. (Georgia Pacific Corp. Proj.) Series 1996, 3.70%, LOC Commerzbank, Germany, VRDN (b) 1,000,000 1,000,000 Dekalb County Hsg. Auth. Multi-Family Hsg. Rev. (Bryton Hill Apts. Proj.) Series 1996, 3.65%, LOC PNC Bank, Kentucky, VRDN (b) 1,000,000 1,000,000 Georgia Muni. Elec. Auth. Bonds: (Gen. Resolution Projs.) Series 1987 A, 3.55%, tender 3/10/97 400,000 400,000 (Proj. One) Series 1994 E, 3.60%, tender 3/10/97, LOC ABN-AMRO Bank 1,000,000 1,000,000 Pierce County Ind. Dev. & Bldg. Auth. Rev. (American Egg Prods. Inc. Proj.) Series 1989, 3.70%, LOC SunTrust Bank, Atlanta, VRDN (b) 145,000 145,000 3,545,000 IDAHO - 1.7% Idaho TAN Series 1996, 4.50% 6/30/97 2,500,000 2,505,890 ILLINOIS - 4.4% Chicago O' Hare Int'l. Arpt. Rev., Series 1988 A, 3.60%, LOC Bayerische Landesbank Girozentrale, VRDN (b) 3,300,000 3,300,000 Chicago School Reform Participating VRDN, Series 96-BB, 3.68% (Liquidity Facility Bank of America NT & SA) (c) 1,000,000 1,000,000 Illinois Dev. Fin. Auth. (Kindlon Partners Proj.) 3.75%, LOC LaSalle National Bank, VRDN (b) 900,000 900,000 Illinois Hsg. Dev. Auth. Multi-Family Hsg. Rev. (Williamsburg Apt. Proj.) Series 1991, 3.60%, LOC Landesbank Hessen-Thuringen, VRDN 400,000 400,000 Illinois Regional Trans. Auth. Participating VRDN, Series SG-19, 3.65% (Liquidity Facility Societe Generale, France) (b) 1,000,000 1,000,000 6,600,000 INDIANA - 1.4% Indianapolis Gas Util. Sys. (Citizens Gas & Coke) 3.55% 3/27/97 (Liquidity Facility NBD Bank, NA Indiana CP 1,500,000 1,500,000 Portage Township School Trans. TAN 3.86% 12/31/97 650,000 650,913 2,150,913 MUNICIPAL SECURITIES (A) - CONTINUED PRINCIPAL VALUE AMOUNT (NOTE 1) IOWA - 0.7% Iowa School Corp. TRAN, Series 1996-97 A, 4.75% 6/27/97 (FSA Insured) $ 1,000,000 $ 1,004,448 KANSAS - 0.4% Butler County Solid Waste Disposal Fac. (Texaco Inc.) Series 1994 A, 3.80%, VRDN (b) 600,000 600,000 KENTUCKY - 0.5% Cynthiana Ind. Dev. Rev. (E.D. Bullard Co. Proj.) 3.75%, LOC NationsBank, NA, VRDN (b) 700,000 700,000 LOUISIANA - 1.1% Plaquemines Parish Envir. Rev. Rfdg. (BP Exploration & Oil, Inc.) Series 1995, 3.75%, VRDN (b) 1,500,000 1,500,000 West Baton Rouge Parish Ind. Dist. #3 Rev. (Dow Chemical Co. Proj.) Series 1993, 3.80%, VRDN (b) 200,000 200,000 1,700,000 MARYLAND - 0.4% Baltimore Econ. Dev. Rev. (Rock-Tenn Converting Co.) Series 1987, 3.70%, LOC SunTrust Bank, Atlanta , VRDN (b) 570,000 570,000 MICHIGAN - 2.0% Detroit School Dist. RAN 4.50% 5/1/97 1,000,000 1,001,299 Michigan Hsg. Dev. Auth. Participating VRDN, Series PT-58, 3.70% (Liquidity Facility Credit Suisse First Boston) (b)(c) 980,000 980,000 Michigan Muni. Auth. RAN Series 1996 A, 4.50% 7/3/97 1,000,000 1,002,403 2,983,702 MINNESOTA - 0.7% St. Paul Hsg. and Redev. Auth. Participating VRDN, Series 1996 E, 3.75% (FSA Insured) (Liquidity Facility Norwest Bank NA, Minnesota) (c) 1,000,000 1,000,000 MISSOURI - 1.0% Independence Ind. Dev. Auth. (Interlock Realty Co. Proj.) 3.80%, LOC Star Bank, NA, VRDN (b) 480,000 480,000 St. Louis TRAN 4.75% 6/30/97 1,000,000 1,003,336 1,483,336 NEVADA - 4.1% Clark County Ind. Dev. Rev. (Nevada Pwr. Co. Proj.) Series 1995 A, 3.70%, LOC Barclays Bank, PLC, UK, VRDN (b) 3,250,000 3,250,000 Clark County Poll. Cont. Rev. Bonds (Southern California Edison) Series 1987 A, 3.45%, tender 3/10/97 (b) 2,000,000 2,000,000 Clark County School Dist. Participating VRDN, Series BTP-192, 3.70% (Liquidity Facility Bankers Trust Company) VRDN (c) 1,000,000 1,000,000 6,250,000 NEW MEXICO - 0.3% New Mexico State Highway Commission Tax Rev. Highway Bonds Series 1996, 3.70%, tender 2/4/97 (FSA Insured) (Liquidity Facility Canadian Imperial Bank of Commerce) 500,000 500,000 MUNICIPAL SECURITIES (A) - CONTINUED PRINCIPAL VALUE AMOUNT (NOTE 1) NEW YORK - 3.6% Hempstead BAN 3.50% 2/28/97 $ 1,461,000 $ 1,461,229 New York City RAN Series 1996-B, 4.50% 6/30/97 4,000,000 4,012,474 5,473,703 NORTH CAROLINA - 0.5% Piedmont Triad Arpt. Auth. Spl. Facs. Rev. (Triad Int'l. Maintenance Corp. Proj.) Series 1989, 3.75%, LOC Mellon Bank N.A., VRDN (b) 800,000 800,000 OHIO - 1.3% Finneytown BAN 4.38% 7/17/97 1,000,000 1,003,284 Ohio Hsg. Fin. Agcy. Participating VRDN, Series 96-6, 3.70% (Liquidity Facility Bank of New York, NY) (b) (c) 900,000 900,000 1,903,284 OKLAHOMA - 2.2% Guymon Utils. Auth. Rev. (Seaboard Proj.) Series 1995, 3.70%, LOC SunTrust Bank Atlanta (b) 3,300,000 3,300,000 OREGON - 0.3% Oregon Hsg. & Commty. Svcs. Dept. Mtg. Bonds (Single Family Mtg. Prog.) Series K, 3.65%, tender 12/11/97 (b) 500,000 500,000 PENNSYLVANIA - 9.0% Berks County Ind. Dev. Auth. Facs. Rev. (RAM Industries, Inc.) Series 1996, 3.95%, LOC Corestates Bank, VRDN (b) 350,000 350,000 Bucks County Ind. Dev. Auth. Ind. Dev., VRDN (b): (Associates Proj.) Series 1993, 3.95%, LOC Corestates Bank 1,210,000 1,210,000 (Double H Plastics Inc. Proj.) Series 1993, 3.95%, LOC Corestates Bank 2,235,000 2,235,000 Carbon County Ind. Dev. Auth. Resource Recovery Rev. Bonds (Panther Creek Partners Proj.) Series 1991 A, 3.60%, tender 4/9/97, LOC Nat'l. Westminster Bank PLC (b) 750,000 750,000 Emmaus Gen. Auth. Local Gov't. Rev. Series 1989 D-10, 3.60%, LOC Canadian Imperial Bank of Commerce, VRDN 1,800,000 1,800,000 Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN (b): (ASK Foods, Inc.) Series A-1, 3.70%, LOC PNC Bank, NA 435,000 435,000 (Dodge-Regupol, Inc. Proj.) Series D-4, 3.70%, LOC PNC Bank, NA 1,500,000 1,500,000 (Port Erie Plastics Proj.) Series 1989 D-9, 3.70%, LOC PNC Bank, NA 250,000 250,000 (Sun Star, Inc. Proj.) Series 1994 A-5, 3.70%, LOC PNC Bank, NA 1,000,000 1,000,000 Pennsylvania TAN Series 1996-97, 4.50% 6/30/97 3,000,000 3,008,953 Venango Ind. Dev. Auth. Resource Recovery Rev. Bonds (Scrubgrass Proj.) Series 1990 B, 3.50%, tender 3/25/97, LOC Nat'l. Westminster Bank PLC (b) 1,000,000 1,000,000 13,538,953 RHODE ISLAND - 1.2% Rhode Island Ind. Fac. Corp. Ind. Dev. Rev. (NFA Corp Proj.) 3.90%, LOC Bank of Boston, VRDN (b) 1,800,000 1,800,000 SOUTH CAROLINA - 2.5% Lexington County School Dist. Gen. Oblig. Bonds Series 1996, 5.75% 2/1/97 (FSA Insured) 1,125,000 1,125,000 Marlboro County Solid Waste Disposal Fac. (Willamette Ind. Inc. Proj.) Series 1995, 3.65%, LOC Deutsche Bank, A.G., VRDN (b) 700,000 700,000 MUNICIPAL SECURITIES (A) - CONTINUED PRINCIPAL VALUE AMOUNT (NOTE 1) SOUTH CAROLINA - CONTINUED South Carolina Econ. Dev. Rev. (Paxar Corp. Proj.) Series 1996, 3.70%, LOC Wachovia Bank of Georgia, VRDN (b) $ 2,000,000 $ 2,000,000 3,825,000 SOUTH DAKOTA - 0.3% South Dakota Hsg. Dev. Auth. Participating VRDN, Series PA-119, 3.70% (Liquidity Facility Merrill Lynch & Co.) (b) (c) 520,000 520,000 TENNESSEE - 5.1% Cookeville Ind. Dev. Board Ind. Dev. Rev. (Delbar Products Inc. Proj.) 3.70%, LOC PNC Bank, NA, VRDN (b) 800,000 800,000 Memphis-Shelby County Poll. Cont. Rev. (Birmingham Steel) Series 1996, 3.70%, LOC PNC Bank, Kentucky, VRDN (b) 500,000 500,000 Morristown Ind. Dev. (Lakeway Container Inc. Proj.) Series 1993, 3.65%, LOC First Tennessee Bank, NA, VRDN (b) 2,000,000 2,000,000 Tennessee Hsg. Dev. Agcy. Homeownership Prog. Bonds Series 1996-1C, 3.25%, tender 2/6/97 (b) 2,465,000 2,465,000 Tennessee Hsg. Dev. Agcy. Participating VRDN, Series PT-59B, 3.70% (Liquidity Facility Credit Suisse First Boston) (b)(c) 1,000,000 1,000,000 Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990, 3.70%, LOC SunTrust Bank Atlanta, VRDN (b) 995,000 995,000 7,760,000 TEXAS - 16.7% Austin Util. Sys. Rev. Series A, 3.50% 3/20/97, LOC Morgan Guaranty Trust, NY, CP 1,000,000 1,000,000 Brazos Harbor Ind. Dev. Corp. Bonds (Dow Chemical Corp.) Series 1986, 3.55%, tender 4/9/97 960,000 960,000 Brazos River Harbor Navigation Dist. of Brazoria County (Dow Chemical Co. Proj.) (b): Bonds: Series 1988: 3.50%, tender 3/6/97 1,000,000 1,000,000 3.60%, tender 5/6/97 500,000 500,000 Series 1992, 3.55%, tender 3/7/97 1,000,000 1,000,000 Series 1993, 3.80%, VRDN 1,100,000 1,100,000 Cedar Hill ISD Unltd. Tax School Bldg. and Rfdg. Bonds Series 1996, 4% 8/15/97 705,000 706,098 Dallas Area Rapid Transit Sales and Tax Rev. Series A, 3.45% 3/24/97, LOC Credit Suisse First Boston, CP 2,250,000 2,250,000 Denton Util. Sys. Rev. Rfdg. Participating VRDN, Series SG-32, 3.65% (Liquidity Facility Societe Generale, France) (c) 1,000,000 1,000,000 Gulf Coast Waste Disposal Auth. Poll. Cont. Rev.: Rfdg. Bonds (Exxon Proj.) 3.45%, tender 3/20/97 2,000,000 2,000,000 (Amoco Oil Co.) Series 1994, 3.75%, VRDN (b) 400,000 400,000 Gulf Coast Waste Disposal Auth. Rev. (Amoco Oil Co.) 3.75%, VRDN (b) 1,000,000 1,000,000 Lamarque ISD TRAN Series 1996, 4.167% 8/29/97 (d) 1,200,000 1,200,000 Mineral Wells Ind. Dev. Rev. (Ameron Inter Corp.) 3.60%, LOC Commerzbank, Germany, VRDN (b) 1,000,000 1,000,000 Port of Corpus Christi Ind. Dev. Corp. (Citgo Petroleum Proj.) Series 1996, 3.80%, LOC Banque Nationale de Paris, VRDN (b) 1,000,000 1,000,000 MUNICIPAL SECURITIES (A) - CONTINUED PRINCIPAL VALUE AMOUNT (NOTE 1) TEXAS - CONTINUED Port of Corpus Christi Waste Rev. (Coastal Refining & Mktg.) 3.65%, LOC Banque Nationale de Paris, VRDN (b) $ 1,000,000 $ 1,000,000 San Antonio Hsg. Fin. Auth. Rev. (Braesview Apts. Proj.) 3.60%, LOC Swiss Bank Corp., VRDN (b) 3,200,000 3,200,000 Texas Gen. Oblig. TRAN Series 1996, 4.75% 8/29/97 4,900,000 4,921,541 25,237,639 UTAH - 1.0% Salt Lake City Arpt. Rev., Series 1996 A, 3.60%, LOC Union Bank of Switzerland, VRDN (b) 500,000 500,000 Utah Hsg. Fin. Agcy. Single-Family Mtg. Participating VRDN, Series PT-84B, 3.70% (Liquidity Facility Rabobank Nederland, NV) (b)(c) 1,000,000 1,000,000 1,500,000 VIRGINIA - 2.2% Frederick County Ind. Dev. Auth. Rev. (Nat'l. Wildlife Federation Proj.) Series 1996, 3.70%, LOC NationsBank, VRDN (b) 1,000,000 1,000,000 Louisa Ind. Dev. Auth. Poll. Cont. Rev. Bonds (Virginia Elec. Pwr. Co. Proj.) Series 1984, 3.50%, tender 3/20/97 1,000,000 1,000,000 Mecklenburg County Ind. Dev. Auth. Rev. (American Bldgs. Co. Proj.) 3.70%, LOC LaSalle National Bank, VRDN (b) 1,320,000 1,320,000 3,320,000 WASHINGTON - 2.4% Algona Econ. Dev. Corp. Ind. Rev. (Aitchison Family Partnership) Series 1992, 3.70%, LOC Wells Fargo Bank, VRDN (b) 2,680,000 2,680,000 Washington Gen. Oblig. Participating VRDN, Series SGB-11, 3.65% (Liquidity Facility Societe Generale, France) (c) 1,000,000 1,000,000 3,680,000 WEST VIRGINIA - 1.0% Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.) Series 1988, 3.60%, LOC Svenska Handelsbanken, VRDN (b) 1,500,000 1,500,000 WISCONSIN - 4.3% Appleton Ind. Dev. Rev. (Pensar Corp. Proj.) Series 1993, 3.70% LOC Bank One ,Milwaukee, VRDN (b) 840,000 840,000 City of Eau Claire Solid Waste Disp. Rev. (Pope & Talbot Proj.) Series 1994, 3.70%, LOC Wachovia Bank of Georgia, VRDN (b) 2,000,000 2,000,000 Racine Ind. Dev. Rev. (Burlington Graphic Sys.) Series 1994, 3.70%, LOC Bank One, Milwaukee, VRDN (b) 1,720,000 1,720,000 River Falls Ind. Dev. Rev. (Quadion Corp. Proj.) 3.70%, LOC First Bank, Minnesota, VRDN (b ) 1,895,000 1,895,000 6,455,000 MULTIPLE STATES - 1.6% Clipper Participating VRDN, Series 1995 1, 3.73% (Liquidity Facility State Street Bank & Trust Co., Boston) (b)(c) 2,153,291 2,153,291 MUNICIPAL SECURITIES (A) - CONTINUED PRINCIPAL VALUE AMOUNT (NOTE 1) MULTIPLE STATES - CONTINUED Stephens Equity Trust #3 Participating VRDN, Series 1996, 3.78%, LOC Bayerische Hypotheken (c) $ 298,975 $ 298,975 2,452,266 OTHER - 4.0% Municipal Central Cash Fund 3.50% 2/7/97 6,022,151 6,022,151 TOTAL INVESTMENTS - 100% $ 150,869,508 Total Cost for Income Tax Purposes - $ 150,869,508 SECURITY TYPE ABBREVIATIONS BAN - Bond Anticipation Notes CP - Commercial Paper RAN - Revenue Anticipation Notes TAN - Tax Anticipation Notes TRAN - Tax and Revenue Anticipation Notes VRDN - Variable Rate Demand Notes LEGEND (1.) The coupon rate shown on floating or adjustable rate securities represents the rate at period end. (2.) Private activity obligations whose interest is subject to the federal alternative minimum tax for individuals. (3.) Provides evidence of ownership in one or more underlying municipal bonds. (4.) 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 Lamarque ISD TRAN Series 1996, 4.167% 8/29/97 11/18/96 $ 1,200,000 INCOME TAX INFORMATION At July 31, 1996, the fund had a capital loss carryforward of approx- imately $25,000 of which $3,000, $2,000, $5,000 and $15,000 will expire on July 31, 2000, 2001, 2002, and 2004, respectively. CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
JANUARY 31, 1997 (UNAUDITED) ASSETS Investment in securities, at value - See accompanying schedule $ 150,869,508 Cash 21,837 Interest receivable 1,075,726 TOTAL ASSETS 151,967,071 LIABILITIES Share transactions in process $ 165,746 Distributions payable 5,548 Accrued management fee 56,371 Other payables and accrued expenses 90,197 TOTAL LIABILITIES 317,862 NET ASSETS $ 151,649,209 Net Assets consist of: Paid in capital $ 151,671,200 Accumulated net realized gain (loss) on investments (21,991) NET ASSETS, for 151,671,200 shares outstanding $ 151,649,209 NET ASSET VALUE, offering price and redemption price per share $1.00 ($151,649,209 (divided by) 151,671,200 shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JANUARY 31, 1997 (UNAUDITED) INTEREST INCOME $ 2,522,963 EXPENSES Management fee $ 343,891 Transfer agent, accounting and custodian fees and expenses 171,757 Distribution fees 242,192 Non-interested trustees' compensation 231 Registration fees 45,798 Audit 12,096 Legal 918 Miscellaneous 1,030 Total expenses before reductions 817,913 Expense reductions (137,608) 680,305 NET INTEREST INCOME 1,842,658 NET REALIZED GAIN (LOSS) ON INVESTMENTS 2,573 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,845,231
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS YEAR ENDED ENDED JANUARY JULY 31, 31, 1997 1996 (UNAUDITED) INCREASE (DECREASE) IN NET ASSETS Operations $ 1,842,658 $ 3,675,894 Net interest income Net realized gain (loss) 2,573 (14,544) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,845,231 3,661,350 Distributions to shareholders from net interest income (1,842,658) (3,675,894) Share transactions at net asset value of $1.00 per share 391,552,872 802,017,521 Proceeds from sales of shares Reinvestment of distributions from net interest income 1,792,825 3,543,229 Cost of shares redeemed (370,873,487) (800,191,110) NET INCREASE (DECREASE) IN NET ASSETS AND RESULTING FROM SHARE TRANSACTIONS 22,472,210 5,369,640 TOTAL INCREASE (DECREASE) IN NET ASSETS 22,474,783 5,355,096 NET ASSETS Beginning of period 129,174,426 123,819,330 End of period $ 151,649,209 $ 129,174,426
FINANCIAL HIGHLIGHTS SIX MONTHS ENDED YEARS ENDED JULY 31, JANUARY 31, 1997
(UNAUDITED) 1996 1995 1994 1993 1992 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 .014 .028 .029 .018 .019 .031 Net interest income Less Distributions From net interest income (.014) (.028) (.029) (.018) (.019) (.031) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN B 1.36% 2.83% 2.94% 1.80% 1.96% 3.14% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ 151,649 $ 129,174 $ 123,819 $ 116,497 $ 116,274 $ 68,497 Ratio of expenses to average net assets .99% A, .99% .99% .98% .95% .95% C C C C C C Ratio of net interest income to average 2.68% A 2.79% 2.89% 1.78% 1.92% 2.89% net assets
A ANNUALIZED B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS) . NOTES TO FINANCIAL STATEMENTS For the period ended January 31, 1997 (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES. Capital Reserves: Money Market Portfolio, U.S. Government Portfolio and Municipal Money Market Portfolio (the funds) are funds of Daily Money Fund (the trust). The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Delaware business trust. Each fund is authorized to issue an unlimited number of shares. The financial statements have been prepared in conformity with generally accepted accounting principles which permit management to make certain estimates and assumptions at the date of the financial statements. 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 substantially 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 discount represents unrealized gain until realized at the time of a security disposition or maturity. EXPENSES. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned between the funds in the trust. DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid monthly from net interest income. SECURITY TRANSACTIONS. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 2. OPERATING POLICIES. JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the funds, along with other affiliated entities of Fidelity Management & Research Company (FMR), may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements for U.S. Treasury or Federal Agency obligations. MUNICIPAL CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the SEC, the Municipal Money Market fund may invest in the Municipal Central Cash Fund (the Cash Fund) managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end money market fund available only to investment companies and other accounts managed by FMR and its affiliates. The Cash Fund seeks preservation of capital, liquidity, and current income by investing in high-quality, short-term municipal securities, and may be utilized by the fund as an additional cash management option. Dividends from the Cash Fund are declared daily and paid monthly from net interest income. Income distributions received by the fund are recorded as interest income. REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency Securities are transferred to an account of the funds, or to the Joint Trading Account, at a bank custodian. The securities are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). FMR, the funds' investment adviser, is responsible for determining that the value of the underlying securities remains in accordance with the market value requirements stated above. REVERSE REPURCHASE AGREEMENTS. At all times that a reverse repurchase agreement is outstanding, the fund identifies cash and liquid securities as segregated in its custodian records with a value at least equal to its obligation under the agreement. On January 31, 1997, U.S. Government fund had a reverse repurchase agreement amounting to $5,827,793 at 4.90% outstanding. The agreement, which matured February 3, 1997, was collateralized by $6,000,000 of U.S. Treasury Bills due August 21, 1997. RESTRICTED SECURITIES. The Money Market and Municipal Money Market funds are permitted to invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from 2. OPERATING POLICIES - CONTINUED RESTRICTED SECURITIES - CONTINUED 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 $1,200,000 or 0.8% of net assets for the Municipal Money Market fund. The Money Market fund had no investments in restricted securities (excluding 144A issues). 3. JOINT TRADING ACCOUNT. At the end of the period, the U.S. Government fund had 20% or more of its total investments in repurchase agreements through a joint trading account. These repurchase agreements were with entities whose creditworthiness has been reviewed and found satisfactory by FMR. The maturity values of the joint trading account investments were $178,082,338 at 5.55% and $30,294,057 at 5.57%. The investments in repurchase agreements through the joint trading account are summarized as follows: SUMMARY OF JOINT TRADING DATED JANUARY 31, 1997, DUE FEBRUARY 3, 1997 AT 5.55% Number of dealers or banks 15 Maximum amount with one dealer or bank 16.7% Aggregate principal amount of agreements $9,273,176,000 Aggregate maturity amount of agreements $9,277,465,517 Aggregate market value of transferred assets $9,465,984,000 Coupon rates of transferred assets 0% to 15.75% Maturity dates of transferred assets 2/6/97 to 11/15/26 DATED JANUARY 31, 1996, DUE FEBRUARY 3, 1997 AT 5.57% Number of dealers or banks 4 Maximum amount with one dealer or bank 28.3% Aggregate principal amount of agreements $530,000,000 Aggregate maturity amount of agreements $530,246,038 Aggregate market value of transferred assets $541,119,817 Coupon rates of transferred assets 0%- 15.75% Maturity dates of transferred assets 2/6/97 - 11/15/26 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. DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service Plan (the Plan), 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 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED DISTRIBUTION AND SERVICE PLAN - CONTINUED 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 Plan in the amount of $1,683,573, $271,526 and $172,040 for the Money Market, U.S. Government and Municipal Money Market funds, respectively. Of the fees paid by the funds and FMR for the period, the Distributor has reallocated to third parties $3,494,588, $570,513, and $347,387 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. UMB Bank n.a. (UMB) is the custodian and transfer and shareholder servicing agent for the Municipal Money Market fund. UMB has entered into a sub-contract with FIIOC to perform the activities associated with the Municipal Money Market fund's transfer and shareholder servicing agent functions. FIIOC receives account fees and asset-based fees that vary according to account size and type of account. 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 $141,859 for the Municipal Money Market fund. For the period, the transfer agent fees were equivalent to an annualized rate of .25%, .21% and .21% of average net assets for the Money Market , U.S. Government and Municipal Money Market funds, respectively. Fidelity Service Co., Inc. (FSC), an affiliate of FMR, maintains the accounting records for the Money Market and U.S. Government funds. UMB 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 $23,350 for the Municipal Money Market fund. 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 .99% of average net assets. For the period, the reimbursement reduced expenses by $1,014,787, $219,454 and $136,557 for the Money Market, U.S. Government and Municipal Money Market funds, respectively. In addition, each fund has entered into an arrangement with its custodian whereby interest earned on uninvested cash balances was used to offset a portion of each fund's expenses. During the period, the custodian fees were reduced by $381, $18 and $1,051 for the Money Market, U.S. Government and Municipal Money Market funds, respectively, under this arrangement. 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 Sarah H. Zenoble, VICE PRESIDENT Robert Litterst, VICE PRESIDENT Leland C. Barron, VICE PRESIDENT Scott A. Orr, VICE PRESIDENT Arthur S. Loring, SECRETARY Kenneth A. Rathgeber, TREASURER Thomas D. Maher, ASSISTANT VICE PRESIDENT John H. Costello, ASSISTANT TREASURER Leonard M. Rush, ASSISTANT TREASURER Thomas J. Simpson, ASSISTANT TREASURER BOARD OF TRUSTEES J. Gary Burkhead Ralph F. Cox * Phyllis Burke Davis * Edward C. Johnson 3d E. Bradley Jones * Donald J. Kirk * Peter S. Lynch Marvin L. Mann * Gerald C. McDonough * William O. McCoy * Thomas R. Williams * GENERAL DISTRIBUTOR National Financial Services Corporation Boston, MA * INDEPENDENT TRUSTEES TRANSFER AND SHAREHOLDER SERVICING AGENTS Fidelity Investments Institutional Operations Company Boston, MA UMB Bank, n.a. (MUNICIPAL MONEY MARKET PORTFOLIO) Kansas City, MO CUSTODIANS The Bank of New York New York, NY UMB Bank, n.a. (MUNICIPAL MONEY MARKET PORTFOLIO) Kansas City, MO -----END PRIVACY-ENHANCED MESSAGE-----