(registered trademark)
FIDELITY
MONEY MARKET
TRUST:
DOMESTIC
MONEY MARKET
PORTFOLIO
ANNUAL REPORT
AUGUST 31, 1995
FDMM-ANN-1095
4129
CONTENTS
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SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
INVESTMENTS 3 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 5 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 9 Notes to the financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS 11 The auditors' opinion.
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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.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ
IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
INVESTMENTS AUGUST 31, 1995
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 5.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Chemical Bank
9/15/95 5.78% $ 2,750,000 $ 2,743,850
9/27/95 5.85 356,067 354,579
10/23/95 5.78 2,300,000 2,281,064
CoreStates Bank of Delaware, N.A.
9/26/95 5.78 1,500,000 1,494,032
9/28/95 5.78 1,000,000 995,702
Mellon Bank, N.A.
9/1/95 6.01 6,000,000 6,000,000
10/25/95 5.76 2,414,136 2,393,567
NationsBank of Georgia
9/18/95 5.80 2,200,000 2,194,037
TOTAL BANKERS' ACCEPTANCES 18,456,831
COMMERCIAL PAPER - 53.6%
AVCO Financial Services, Inc.
9/12/95 5.78 1,000,000 998,243
10/30/95 5.78 5,000,000 4,953,373
American General Finance Corp.
10/4/95 5.75 5,000,000 4,973,875
10/5/95 5.75 5,000,000 4,973,083
11/8/95 5.79 5,000,000 4,946,072
American Telephone & Telegraph Co.
11/30/95 5.72 5,000,000 4,929,876
Associates Corp. of North America
9/1/95 5.98 5,000,000 5,000,000
10/6/95 5.71 4,000,000 3,978,105
Bear Stearns Cos., Inc.
10/13/95 5.78 5,000,000 4,966,576
Beneficial Corp.
10/16/95 5.77 5,000,000 4,964,313
CIESCO, L.P.
10/12/95 5.79 5,000,000 4,967,314
10/13/95 5.79 5,000,000 4,966,516
10/26/95 5.76 5,000,000 4,956,458
CIT Group Holdings, Inc.
9/18/95 6.06 5,000,000 4,985,975
Corporate Asset Funding Co., Inc.
11/2/95 5.77 10,000,000 9,901,833
Electronic Data Systems Corp.
9/15/95 5.75 2,000,000 1,995,567
Enterprise Funding Corp.
9/13/95 5.80 1,400,000 1,397,299
General Electric Capital Corp.
9/19/95 5.85 4,000,000 3,988,500
10/3/95 5.76 5,000,000 4,974,667
11/22/95 5.76 5,000,000 4,935,653
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Georgia Power Co.
9/7/95 5.80% $ 5,250,000 $ 5,244,952
Lilly (Eli) & Co.
10/17/95 5.78 5,000,000 4,963,456
10/18/95 5.78 5,000,000 4,962,661
Morgan (J.P.) & Co.
12/20/95 5.73 5,000,000 4,914,597
Morgan Stanley Group, Inc.
10/10/95 5.78 5,000,000 4,969,017
National Rural Util. Coop. Fin. Corp.
9/5/95 5.93 5,000,000 4,996,744
10/16/95 5.77 10,000,000 9,928,375
Norwest Corp.
9/5/95 6.01 5,000,000 4,996,716
Pitney Bowes Inc.
10/11/95 5.76 4,000,000 3,974,667
Preferred Receivables Funding Corp.
9/11/95 5.78 5,000,000 4,992,014
9/14/95 5.78 5,000,000 4,989,618
Prospect Street Senior Portfolio LP
9/1/95 5.81 4,021,000 4,021,000
9/19/95 5.81 3,821,000 3,809,957
Prudential Funding Corp.
11/15/95 5.78 5,000,000 4,940,729
United Parcel Service
9/8/95 5.95 2,875,000 2,871,719
TOTAL COMMERCIAL PAPER 166,329,520
FEDERAL AGENCIES - 17.7%
FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 3.0%
9/29/95 5.89 4,500,000 4,479,771
2/22/96 5.65 5,000,000 4,867,083
9,346,854
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 3.1%
2/26/96 5.50 10,000,000 9,728,056
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 5.2%
10/20/95 5.68 5,000,000 4,961,889
11/15/95 5.73 10,000,000 9,882,293
2/9/96 5.64 1,298,000 1,266,074
16,110,256
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 3.2%
10/27/95 5.68 5,000,000 4,956,446
11/3/95 5.68 5,000,000 4,951,000
9,907,446
FEDERAL AGENCIES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS - 3.2%
9/5/95 5.66% (a) $ 10,000,000 $ 10,000,000
TOTAL FEDERAL AGENCIES 55,092,612
BANK NOTES - 7.3%
Bank of America - Illinois
9/28/95 5.90 5,000,000 5,000,000
First Bank N.A. - Minnesota
10/10/95 5.78 4,000,000 3,999,915
Harris Trust & Savings Bank, Chicago
10/31/95 5.73 5,000,000 5,000,000
NBD Bank, N.A.
1/31/96 5.73 3,600,000 3,574,092
NationsBank of Texas
10/10/95 6.00 5,000,000 5,000,000
TOTAL BANK NOTES 22,574,007
MASTER NOTES (A) - 1.3%
J.P. Morgan Securities
9/1/95 6.08 4,000,000 4,000,000
MEDIUM-TERM NOTES (A) - 2.9%
Beneficial Corp.
9/15/95 5.89 5,000,000 4,999,857
General Motors Acceptance Corp.
11/7/95 5.98 4,000,000 4,000,000
TOTAL MEDIUM-TERM NOTES 8,999,857
SHORT-TERM NOTES (A) - 4.2%
CSA Funding - A (b)
9/8/95 5.88 6,000,000 6,000,000
Capital One Funding Corp.
9/8/95 5.84 7,100,000 7,100,000
TOTAL SHORT-TERM NOTES 13,100,000
REPURCHASE AGREEMENTS - 7.1%
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account
(U.S. Treasury Obligations)
dated 8/31/95 due 9/1/95:
At 5.83% $ 22,056,573 $ 22,053,000
TOTAL INVESTMENTS - 100% $ 310,605,827
Total Cost for Income Tax Purposes $ 310,605,827
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 $ 6,000,000
INCOME TAX INFORMATION
At August 31, 1995, the fund had a capital loss carryforward of
approximately of $74,000 which $40,000, $32,000 and $2,000 will expire on
August 31, 1996, 1997 and 1998, respectively.
For the period ended August 31, 1995, approximately 4% of the fund's
dividends to shareholders was derived from interest on U.S. Government
obligations.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
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AUGUST 31, 1995
1.ASSETS 2. 3.
4.Investment in securities, at value (including repurchase agreements of $22,053,000) - 5. $ 310,605,827
See accompanying schedule
6.Cash 7. 33,915
8.Interest receivable 9. 456,025
10. 11.TOTAL ASSETS 12. 311,095,767
13.LIABILITIES 14. 15.
16.Payable for investments purchased $ 9,728,055 17.
18.Distributions payable 398,010 19.
20.Accrued management fee 106,950 21.
22. 23.TOTAL LIABILITIES 24. 10,233,015
25.26.NET ASSETS 27. $ 300,862,752
28.Net Assets consist of: 29. 30.
31.Paid in capital 32. $ 300,924,146
33.Accumulated net realized gain (loss) on investments 34. (61,394)
35.36.NET ASSETS, for 300,924,146 shares outstanding 37. $ 300,862,752
38.39.NET ASSET VALUE, offering price and redemption price per share 40. $1.00
($300,862,752 (divided by) 300,924,146 shares)
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STATEMENT OF OPERATIONS
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YEAR ENDED AUGUST 31, 1995
41.42.INTEREST INCOME 43. $ 18,542,323
44.EXPENSES 45. 46.
47.Management fee $ 1,352,919 48.
49.Non-interested trustees' compensation 1,535 50.
51. 52.TOTAL EXPENSES 53. 1,354,454
54.55.NET INTEREST INCOME 56. 17,187,869
57.58.NET REALIZED GAIN (LOSS) ON INVESTMENTS 59. 9,578
60.61.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 62. $ 17,197,447
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STATEMENT OF CHANGES IN NET ASSETS
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YEARS ENDED AUGUST 31,
1995 1994
63.INCREASE (DECREASE) IN NET ASSETS
64.Operations $ 17,187,869 $ 13,764,336
Net interest income
65. Net realized gain (loss) 9,578 2,518
66. 67.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 17,197,447 13,766,854
68.Distributions to shareholders from net interest income (17,187,869) (13,764,336)
69.Share transactions at net asset value of $1.00 per share 2,232,610,577 3,064,984,625
Proceeds from sales of shares
70. Reinvestment of distributions from net interest income 12,093,056 8,647,981
71. Cost of shares redeemed (2,343,183,252) (3,285,712,520)
72.73. (98,479,619) (212,079,914)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
74. 75.TOTAL INCREASE (DECREASE) IN NET ASSETS (98,470,041) (212,077,396)
76.NET ASSETS 77. 78.
79. Beginning of period 399,332,793 611,410,189
80. End of period $ 300,862,752 $ 399,332,793
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FINANCIAL HIGHLIGHTS
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YEARS ENDED AUGUST 31, TEN MONTHS YEAR
ENDED ENDED
AUGUST 31, OCTOBER 31,
1995 1994 1993 1992 1991
81.SELECTED PER-SHARE DATA
82.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
83.Income from Investment Operations .054 .033 .029 .034 .063
Net interest income
84.Less Distributions (.054) (.033) (.029) (.034) (.063)
From net interest income
85.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
86.TOTAL RETURN B 5.53% 3.34% 2.93% 3.44% 6.44%
87.RATIOS AND SUPPLEMENTAL DATA
88.Net assets, end of period (000 omitted) $ 300,863 $ 399,333 $ 611,410 $ 765,721 $ 851,872
89.Ratio of expenses to average net assets .42% .42% .42% .42%A .42%
90.Ratio of net interest income to average net assets 5.33% 3.24% 2.89% 4.04%A 6.38%
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A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES.
Domestic Money Market Portfolio (the fund) is a fund of Fidelity Money
Market Trust (the trust) and is authorized to issue an unlimited number of
shares. The trust is registered under the Investment Company Act of 1940,
as amended (the 1940 Act), as an open-end management investment company. At
a special meeting of the shareholders of the fund held on December 8, 1994,
shareholders approved an Agreement and Plan of Conversion and Termination
(the Plan of Conversion), providing for the conversion of the fund from a
separate series of a Massachusetts business trust, to a separate series of
a Delaware business trust, effective December 29,1994. The individual
investment objective, policies and limitations of the fund remain the same,
except for the proposals approved by shareholders on December 8, 1994. 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 substantially 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. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, 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 that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
RESTRICTED SECURITIES. The fund is 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 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 $6,000,000 or 2%
of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, 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 fees are paid prior to any voluntary
expense
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE - CONTINUED
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.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation, an affiliate of
FMR, may use their resources to pay administrative and promotional expenses
related to the sale of the fund's shares. Subject to the approval of the
Board of Trustees, the Plan also authorizes payments to third parties that
assist in the sale of the fund's shares or render shareholder support
services. No payments were made to third parties under the Plan during the
period.
In connection with the Plan of Conversion, a new Management Contract, new
Sub-Advisory Agreement and new Distribution and Service Plan identical to
those previously in effect became effective on December 29, 1994.
4. BENEFICIAL INTEREST.
At the end of the period, 2 shareholders were each record owners of
approximately 10% or more of the total outstanding shares of the fund,
totaling 30%.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Money Market Trust and the Shareholders of
Domestic Money Market Portfolio:
We have audited the accompanying statements of assets and liabilities of
Fidelity Money Market Trust: Domestic Money Market Portfolio, including the
schedules of portfolio investments, as of August 31, 1995, and the related
statements of operations for the year then ended, the statements of changes
in net assets for each of the two years in the period then ended and the
financial highlights for each of the three years in the period then ended,
the ten month period ended August 31, 1992 and for the year then ended
October 31, 1991. These financial statements and financial highlights are
the responsibility of the fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of August 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Money Market Trust: Domestic Money Market Portfolio as of
August 31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the three years in the
period then ended, the ten month period ended August 31, 1992 and for the
year then ended October 31, 1991, in conformity with generally accepted
accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
September 25, 1995
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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
Burnell Stehman, 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
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*
CUSTODIAN
Morgan Guaranty Trust Company of New York
New York, NY
TRANSFER AND
SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company
Boston, MA
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
