(registered trademark)
FIDELITY
MONEY MARKET
TRUST:
RETIREMENT
GOVERNMENT
MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 29, 1996
RGM-SANN-0496
10704
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.
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THE FUND SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT
WITH THE PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING IN MONEY MARKET
SECURITIES ISSUED OR GUARANTEED AS TO PRINCIPAL AND INTEREST BY THE U.S.
GOVERNMENT, OR BY ANY OF ITS AGENCIES OR INSTRUMENTALITIES.
INVESTMENTS IN THE FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE
FUND 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
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, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS 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
INVESTMENTS FEBRUARY 29, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
FEDERAL AGENCIES - 64.7%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS (A) - 2.6%
3/1/96 5.59% $ 60,000,000 $ 59,947,496
FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 1.3%
4/9/96 5.14 4,615,000 4,589,502
4/15/96 5.14 7,100,000 7,054,738
5/9/96 5.06 18,000,000 17,827,500
29,471,740
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 9.7%
3/1/96 5.40 (a) 54,000,000 53,981,782
3/1/96 5.78 (a) 24,000,000 23,984,970
3/8/96 5.63 (a) 27,000,000 26,999,057
3/20/96 5.22 (a) 50,000,000 49,971,771
3/24/96 5.21 (a) 55,000,000 54,969,837
5/15/96 5.08 15,000,000 15,026,633
224,934,050
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 8.0%
3/18/96 5.44 47,348,000 47,227,934
3/19/96 5.44 8,558,000 8,535,022
3/20/96 5.44 29,000,000 28,917,809
4/11/96 5.14 25,000,000 24,854,792
5/7/96 5.06 2,434,000 2,411,350
5/13/96 5.06 75,315,000 74,551,389
186,498,296
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 26.7%
3/1/96 5.38 (a) 28,000,000 28,000,000
3/1/96 5.85 (a) 59,000,000 59,000,000
3/1/96 6.25 (a) 119,000,000 118,898,574
3/5/96 5.22 (a) 77,000,000 76,965,705
3/11/96 5.22 (a) 32,000,000 31,981,199
3/15/96 5.60 29,000,000 29,000,000
3/15/96 5.70 14,000,000 14,004,621
4/25/96 5.27 (a) 102,000,000 101,882,692
5/1/96 5.33 (a) 58,000,000 57,948,845
5/21/96 5.15 (a) 19,000,000 18,984,446
6/10/96 5.66 12,000,000 11,997,782
10/4/96 5.81 (a) 71,000,000 71,000,000
619,663,864
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 11.7%
3/15/96 5.71 54,000,000 53,884,920
3/19/96 5.42 93,835,000 93,583,991
4/3/96 5.13 7,100,000 7,066,807
4/15/96 5.12 60,000,000 59,619,000
5/3/96 5.24 58,000,000 57,475,245
271,629,963
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 4.7%
3/1/96 5.60% $ 20,000,000 $ 20,000,911
3/5/96 5.17 55,000,000 55,089,989
3/5/96 5.24 35,000,000 35,000,000
110,090,900
TOTAL FEDERAL AGENCIES 1,502,236,309
U.S. TREASURY OBLIGATIONS - 9.9%
U.S. TREASURY NOTES
4/30/96 5.58 45,000,000 45,131,250
4/30/96 5.61 55,000,000 55,158,119
4/30/96 5.63 80,000,000 79,962,500
8/15/96 5.00 50,000,000 49,845,599
TOTAL TREASURY OBLIGATIONS 230,097,468
MEDIUM-TERM NOTES (A) (B) - 0.4%
Export-Import Bank, U.S. (as guarantor for K.A. Leasing, Ltd.)
3/15/96 5.25 8,587,544 8,587,544
REPURCHASE AGREEMENTS - 25.0%
MATURITY
AMOUNT
In a joint trading account
(Notes 2 and 3):
(U.S. Government Obligations)
dated 2/29/96, due 3/1/96:
At 5.48% $ 490,860,714 490,786,000
(U.S. Government Obligations)
dated 2/5/96, due 3/4/96:
At 5.30% 61,251,456 61,000,000
(U.S. Government Obligations)
dated 2/7/96, due 3/8/96:
At 5.30% 30,132,500 30,000,000
TOTAL REPURCHASE AGREEMENTS 581,786,000
TOTAL INVESTMENTS - 100% $ 2,322,707,321
Total Cost for Income Tax Purposes $ 2,322,707,321
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).
ACQUISITION ACQUISITION
SECURITY DATE COST
Export-Import Bank, U.S.
(As quarantor for
K.A. Leasing, Ltd.) 7/8/94 $ 8,587,545
INCOME TAX INFORMATION
At August 31, 1995, the fund had a capital loss carryforward of
approximately $334,000 of which $4,000, $47,000, $178,000 and $105,000 will
expire on August 31, 2000, 2001, 2002 and 2003, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
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FEBRUARY 29, 1996 (UNAUDITED)
1.ASSETS 2. 3.
4.Investment in securities, at value (including repurchase agreements of $581,786,000) - See 5. $ 2,322,707,321
accompanying schedule
6.Interest receivable 7. 12,788,887
8. 9.TOTAL ASSETS 10. 2,335,496,208
11.LIABILITIES 12. 13.
14.Payable to custodian bank $ 282 15.
16.Share transactions in process 3,044,323 17.
18.Distributions payable 1,248,665 19.
20.Accrued management fee 773,197 21.
22. 23.TOTAL LIABILITIES 24. 5,066,467
25.26.NET ASSETS 27. $ 2,330,429,741
28.Net Assets consist of: 29. 30.
31.Paid in capital 32. $ 2,330,673,335
33.Accumulated net realized gain (loss) on investments 34. (243,594)
35.36.NET ASSETS, for 2,330,673,339 shares outstanding 37. $ 2,330,429,741
38.39.NET ASSET VALUE, offering price and redemption price per share ($2,330,429,741 (divided by) 40. $1.00
2,330,673,339 shares)
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STATEMENT OF OPERATIONS
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SIX MONTHS ENDED FEBRUARY 29, 1996 (UNAUDITED)
41.42.INTEREST INCOME 43. $ 67,380,510
44.EXPENSES 45. 46.
47.Management fee $ 4,880,780 48.
49.Non-interested trustees' compensation 4,309 50.
51. Total expenses before reductions 4,885,089 52.
53. Expense reductions (1,307,783) 3,577,306
54.55.NET INTEREST INCOME 56. 63,803,204
57.58.NET REALIZED GAIN (LOSS) ON INVESTMENTS 59. (6,813)
60.61.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 62. $ 63,796,391
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STATEMENT OF CHANGES IN NET ASSETS
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SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 1996 AUGUST 31,
(UNAUDITED) 1995
63.INCREASE (DECREASE) IN NET ASSETS
64.Operations $ 63,803,204 $ 107,569,666
Net interest income
65. Net realized gain (loss) (6,813) (105,133)
66. 67.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 63,796,391 107,464,533
68.Distributions to shareholders from net interest income (63,803,204) (107,569,666)
69.Share transactions at net asset value of $1.00 per share 1,062,851,152 1,748,370,223
Proceeds from sales of shares
70. Reinvestment of distributions from net interest income 62,272,825 107,368,815
71. Cost of shares redeemed (1,065,063,615) (1,240,661,774)
72.73. 60,060,362 615,077,264
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
74. 75.TOTAL INCREASE (DECREASE) IN NET ASSETS 60,053,549 614,972,131
76.NET ASSETS 77. 78.
79. Beginning of period 2,270,376,192 1,655,404,061
80. End of period $ 2,330,429,741 $ 2,270,376,192
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FINANCIAL HIGHLIGHTS
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SIX MONTHS YEARS ENDED AUGUST 31, TEN MONTHS YEAR
ENDED ENDED ENDED
FEBRUARY 29, 1996 AUGUST 31, OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992 1991
81.SELECTED PER-SHARE DATA
82.Net asset value,
beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
83.Income from
Investment .027 .053 .032 .029 .034 .061
Operations
Net interest income
84.Less
Distributions (.027) (.053) (.032) (.029) (.034) (.061)
From net interest income
85.Net asset
value, end of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
86.TOTAL
RETURN B 2.71% 5.46% 3.27% 2.95% 3.47% 6.29%
87.RATIOS AND SUPPLEMENTAL DATA
88.Net assets,
end of period $ 2,330,430 $ 2,270,376 $ 1,655,404 $ 1,393,583 $ 1,236,529 $ 936,869
(000 omitted)
89.Ratio of
expenses to
average .31%A, .42% .42% .42% .42% .42%
net assets C A
90.Ratio of net
interest income
to 5.49%A 5.38% 3.26% 2.90% 4.08% 5.98%
average net assets A
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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 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 February 29, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Retirement Government 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 organized as a Delaware business trust. 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 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 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 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 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.
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.
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 $8,587,544 or
0.4% of net assets.
3. JOINT TRADING ACCOUNT.
At the end of the period, the 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 $490,860,714 at 5.48%, $61,251,456 at 5.30% and
$30,132,500 at 5.30%.The investments in repurchase agreements through the
joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
DATED FEBRUARY 29, 1996 DUE MARCH 1, 1996 AT 5.48%
Number of dealers or banks 4
Maximum amount with one dealer or bank 66.7%
Aggregate principal amount of agreements $1,350,000
Aggregate maturity amount of agreements $1,350,205,514
Aggregate market value of collateral $1,398,283,268
Coupon rates of collateral 5.50% to 9.50%
Maturity dates of collateral 8/15/96 to 1/1/26
DATED FEBRUARY 5, 1996 DUE MARCH 4, 1996 AT 5.30%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,824,444
Aggregate market value of collateral $206,847,805
Coupon rates of collateral 0.0% to 11.625%
Maturity dates of collateral 5/2/96 to 2/15/26
DATED FEBRUARY 7, 1996 DUE MARCH 8, 1996 AT 5.30%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $100,000,000
Aggregate maturity amount of agreements $100,444,667
Aggregate market value of collateral $102,882,069
Coupon rates of collateral 0.0% to 13.0%
Maturity dates of collateral 5/9/96 to 5/15/18
4. 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 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.
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 (FDC), 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.
5. EXPENSE REDUCTIONS.
FMR agreed to reimburse a portion of the fund's expenses. For the period,
the reimbursement reduced the expenses by $1,307,783.
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
Kenneth A. Rathgeber, TREASURER
Thomas D. Maher, ASSISTANT VICE PRESIDENT
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
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND
SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
* INDEPENDENT TRUSTEES
(registered trademark)
FIDELITY
MONEY MARKET
TRUST:
RETIREMENT
MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 29, 1996
RGM-SANN-0496
10703
CONTENTS
CHECK PAGE NUMBERS !!!
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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 8 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 12 Notes to the financial statements.
</TABLE>
THE FUND SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT
WITH THE PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING IN
HIGH-QUALITY, SHORT-TERM MONEY MARKET SECURITIES.
INVESTMENTS IN THE FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE
FUND 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
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, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS 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
INVESTMENTS FEBRUARY 29, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 0.2%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.2%
Deutsche Bank, A.G.
6/24/96 5.24% $ 7,786,225 $ 7,658,628
CERTIFICATES OF DEPOSIT - 30.9%
DOMESTIC CERTIFICATES OF DEPOSIT - 1.0%
Chase Manhattan Bank
7/24/96 5.20 20,000,000 20,000,000
Mellon Bank, N.A.
3/7/96 5.70 25,000,000 25,000,000
45,000,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 17.6%
ABN-AMRO Bank
8/7/96 5.10 4,500,000 4,497,976
Australia & New Zealand Banking
7/29/96 5.20 15,000,000 15,000,000
Banque Nationale de Paris
3/15/96 5.49 10,000,000 10,000,039
4/4/96 5.24 50,000,000 50,000,469
4/8/96 5.23 25,000,000 25,000,000
Bayerische Hypotheken-und Weschel
4/12/96 5.77 40,000,000 40,000,454
Bayerische Vereinsbank A.G.
5/28/96 5.30 11,000,000 11,000,000
Caisse Nationale de Credit Agricole
3/11/96 5.67 50,000,000 50,000,000
Canadian Imperial Bank of Commerce
3/11/96 5.50 10,000,000 10,000,000
3/12/96 5.50 20,000,000 20,000,000
4/1/96 5.26 5,000,000 5,000,377
6/4/96 5.19 10,000,000 10,000,000
Commerzbank, Germany
4/30/96 5.25 30,000,000 30,000,950
5/1/96 5.25 22,000,000 22,000,000
Credit Suisse
3/13/96 5.70 50,000,000 50,000,000
4/2/96 5.24 25,000,000 25,000,000
Deutsche Bank, A.G.
4/22/96 5.77 30,000,000 30,000,000
National Westminster Bank, PLC
3/12/96 5.50 20,000,000 20,000,000
4/30/96 5.18 30,000,000 30,000,000
Rabobank Nederland, N.V.
5/16/96 5.32 4,100,000 4,103,957
7/26/96 5.18 25,000,000 25,002,762
Royal Bank of Canada
3/27/96 5.75 15,000,000 15,000,000
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Societe Generale
4/2/96 5.25% $ 30,000,000 $ 30,000,000
4/4/96 5.47 23,000,000 23,000,000
5/1/96 5.25 25,000,000 25,000,000
9/3/96 5.13 50,000,000 50,000,000
Swiss Bank Corp.
3/25/96 5.75 30,000,000 30,000,000
5/6/96 5.47 80,000,000 80,000,000
6/3/96 5.40 40,000,000 40,000,000
7/29/96 5.20 15,000,000 15,000,000
8/8/96 5.16 15,000,000 14,989,195
Westdeutsche Landesbank
7/24/96 5.23 11,000,000 11,000,000
820,596,179
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 1.4%
Chemical Banking Corp.
3/27/96 5.81 45,000,000 45,000,000
Harris Trust & Savings Bank, Chicago
3/4/96 5.73 20,000,000 20,000,000
65,000,000
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 9.9%
ABN-AMRO Bank
7/26/96 5.18 15,000,000 15,002,851
Abbey National (UK), PLC
4/23/96 5.75 15,000,000 15,000,000
Abbey National Treasury Services
4/9/96 5.45 17,000,000 16,999,985
Bank of America National Trust & Savings Assoc.
7/16/96 5.02 22,000,000 22,000,000
Bank of Nova Scotia
3/1/96 5.72 28,000,000 28,000,000
3/29/96 5.50 50,000,000 50,002,140
Bank of Scotland
6/26/96 5.25 20,000,000 20,001,272
Banque Nationale de Paris
3/1/96 5.73 20,000,000 20,000,000
7/8/96 5.04 5,000,000 5,000,302
8/30/96 5.14 10,000,000 10,000,986
Bayerische Hypotheken-und Weschel
3/14/96 5.71 25,000,000 25,000,087
Bayerische Landesbank Girozentrale
6/4/96 5.25 15,000,000 15,000,389
8/30/96 5.12 20,000,000 19,998,942
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - CONTINUED
Commerzbank, Germany
6/27/96 5.25% $ 30,000,000 $ 30,000,000
Deutsche Bank, A.G.
4/4/96 5.24 10,000,000 10,000,072
4/24/96 5.73 30,000,000 30,000,000
7/29/96 5.20 10,000,000 10,000,000
Dresdner Bank, A.G.
3/4/96 5.68 20,000,000 20,000,033
Landesbank Hessen - Thuringen
3/14/96 5.71 25,000,000 25,000,044
7/18/96 5.18 20,000,000 20,000,754
National Westminster Bank, PLC
5/22/96 5.30 9,000,000 9,000,387
Westdeutsche Landesbank
5/1/96 5.24 25,000,000 25,000,836
5/1/96 5.29 10,000,000 10,000,423
5/1/96 5.30 9,000,000 9,000,301
460,009,804
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS (A) - 0.5%
Bank of Nova Scotia
5/3/96 5.33 25,000,000 25,000,000
SAN FRANCISCO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.5%
Banque Nationale de Paris
8/30/96 5.11 15,000,000 14,995,460
9/3/96 5.12 10,000,000 9,995,470
24,990,930
TOTAL CERTIFICATES OF DEPOSIT 1,440,596,913
COMMERCIAL PAPER - 30.4%
ABN-AMRO Bank
8/26/96 5.10 24,000,000 23,410,226
ABN-AMRO North America Finance, Inc.
8/28/96 5.13 13,000,000 12,675,000
AVCO Financial Services, Inc.
3/5/96 5.76 15,000,000 14,990,550
A.H. Robins Company, Incorporated
4/4/96 5.70 13,000,000 12,931,245
5/10/96 5.20 20,000,000 19,799,722
American Express Credit Corp.
3/8/96 5.73 25,000,000 24,972,924
3/11/96 5.74 28,000,000 27,956,211
3/12/96 5.74 28,000,000 27,951,832
4/15/96 5.76 25,000,000 24,825,000
4/24/96 5.51 36,000,000 35,707,860
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
American Express Credit Corp. - continued
4/26/96 5.75% $ 15,000,000 $ 14,869,567
4/30/96 5.51 25,000,000 24,774,583
American Home Products
3/4/96 5.78 5,000,000 4,997,633
3/21/96 5.28 5,625,000 5,608,593
4/3/96 5.71 11,000,000 10,943,534
4/26/96 5.24 10,000,000 9,919,344
5/9/96 5.19 5,000,000 4,950,838
5/10/96 5.20 20,000,000 19,799,916
American Telephone & Telegraph Co.
3/14/96 5.75 35,000,000 34,928,843
5/9/96 5.49 15,000,000 14,845,325
Asset Securitization Cooperative Corporation
4/25/96 5.22 22,000,000 21,826,230
Associates Corp. of North America
3/12/96 5.72 33,000,000 32,943,433
3/15/96 5.75 15,000,000 14,966,925
3/20/96 5.74 10,000,000 9,970,180
4/8/96 5.67 35,000,000 34,794,589
4/11/96 5.64 10,000,000 9,937,020
Beneficial Corp.
4/2/96 5.65 25,000,000 24,876,667
Bradford & Bingley Building Society
4/12/96 5.45 8,000,000 7,949,787
CIT Group Holdings, Inc.
3/1/96 5.40 (a) 20,000,000 19,990,089
3/29/96 5.28 10,000,000 9,959,166
Cheltenham & Gloucester Building Society
4/4/96 5.44 5,000,000 4,974,595
Chemical Banking Corp.
3/15/96 5.69 15,000,000 14,967,333
4/15/96 5.45 9,000,000 8,939,588
Chrysler Financial Corporation
3/4/96 5.60 6,000,000 5,997,225
3/12/96 5.34 10,000,000 9,983,760
3/13/96 5.32 11,000,000 10,980,567
3/27/96 5.38 8,000,000 7,969,147
3/28/96 5.38 8,000,000 7,967,960
4/10/96 5.33 10,000,000 9,941,332
Compagnie Bancaire
3/4/96 5.73 10,000,000 9,995,292
3/13/96 5.60 8,000,000 7,985,253
CoreStates Capital Corp.
3/5/96 5.29 (a) 10,000,000 10,000,000
Dakota
5/15/96 5.18 7,000,000 6,925,333
5/17/96 5.22 11,000,000 10,878,597
Den Danske Corp., Inc.
3/13/96 5.70 15,000,000 14,971,900
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Dresdner Bank, A.G.
3/11/96 5.69% $ 25,000,000 $ 24,961,111
Enterprise Funding Corp.
4/17/96 5.42 5,881,000 5,839,923
5/2/96 5.21 8,300,000 8,226,527
Ford Motor Credit Corp.
3/27/96 5.76 30,000,000 29,878,017
4/4/96 5.77 35,000,000 34,813,897
6/3/96 5.28 12,000,000 11,837,694
Generale Bank
3/6/96 5.74 25,000,000 24,980,382
3/14/96 5.59 15,000,000 14,970,100
8/26/96 5.10 10,000,000 9,754,261
General Electric Capital Corp.
3/14/96 5.75 (a) 15,000,000 15,000,000
3/15/96 5.69 32,000,000 31,930,560
3/27/96 5.80 30,000,000 29,877,800
4/1/96 5.71 15,000,000 14,927,666
4/29/96 5.73 35,000,000 34,680,498
6/24/96 5.23 28,000,000 27,542,045
General Motors Acceptance Corp.
3/5/96 5.83 45,000,000 44,971,350
5/20/96 5.24 20,000,000 19,770,223
5/21/96 5.24 10,000,000 9,883,675
5/22/96 5.24 10,000,000 9,882,239
6/12/96 5.15 18,000,000 17,739,410
Goldman Sachs Group, L.P. (The)
3/18/96 5.75 45,000,000 44,879,938
Lilly (Eli) & Co.
3/11/96 5.82 11,000,000 10,982,675
Morgan Stanley Group, Inc.
3/29/96 5.58 40,000,000 39,828,889
5/16/96 5.95 15,000,000 14,819,596
7/22/96 5.12 4,000,000 3,920,556
National Rural Util. Coop. Fin. Corp.
3/14/96 5.66 8,000,000 7,983,852
4/12/96 5.56 5,000,000 4,968,092
National & Provincial Building Society
4/17/96 5.77 37,000,000 36,729,006
PHH Corp.
3/21/96 5.28 (a) 11,000,000 10,997,979
Sherwood Medical Company
4/19/96 5.25 10,000,000 9,929,222
Societe Generale North America, Inc.
7/24/96 5.22 5,000,000 4,897,593
Textron, Inc.
3/7/96 5.43 4,000,000 3,996,400
3/8/96 5.37 5,000,000 4,994,799
3/21/96 5.37 5,000,000 4,985,139
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Transamerica Finance Corp.
3/22/96 5.23% $ 10,000,000 $ 9,969,667
U.S.L. Capital, Inc.
3/20/96 5.23 20,000,000 19,945,005
Westpac Capital Corp.
4/22/96 5.66 10,000,000 9,920,122
7/11/96 5.28 10,000,000 9,811,167
Wool International
6/20/96 5.22 25,000,000 24,606,104
Woolwich Equitable Building Society
3/18/96 5.81 15,000,000 14,959,908
TOTAL COMMERCIAL PAPER 1,415,143,801
FEDERAL AGENCIES - 8.8%
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 1.7%
3/13/96 5.69 25,000,000 24,987,665
3/20/96 5.69 20,000,000 19,989,892
4/2/96 5.51 35,000,000 34,981,741
79,959,298
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 0.7%
7/17/96 5.05 34,640,000 33,982,706
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 4.8%
3/18/96 5.22 25,000,000 24,992,671
3/20/96 5.69 90,000,000 89,944,015
4/17/96 5.45 36,000,000 35,975,445
5/1/96 5.38 15,000,000 14,986,769
10/4/96 5.81 40,000,000 40,000,000
10/7/96 5.94 14,000,000 13,993,304
219,892,204
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 1.2%
4/9/96 5.12 40,000,000 39,779,867
4/29/96 5.76 15,000,000 14,865,037
54,644,904
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 0.4%
4/16/96 5.60 20,000,000 20,000,000
TOTAL FEDERAL AGENCIES 408,479,112
U.S. TREASURY OBLIGATIONS - 5.1%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS - 4.0%
8/29/96 4.91% $ 90,000,000 $ 87,830,263
9/5/96 (c) 4.96 100,000,000 97,553,111
185,383,374
U.S. TREASURY NOTES - 1.1%
8/15/96 5.00% 50,000,000 49,845,599
TOTAL U.S. TREASURY OBLIGATIONS 235,228,973
BANK NOTES - 10.4%
Bank of America National Trust & Savings Assoc.
3/1/96 5.44 (a) 25,000,000 24,992,621
Bank of New York
9/3/96 5.16 10,000,000 10,000,000
Bank of New York - Delaware
4/30/96 5.65 (a) 25,000,000 25,000,000
Bayerische Landesbank Girozentrale
4/30/96 5.61 (a) 40,000,000 40,000,000
Boatmen's First National Bank of Kansas City
3/1/96 5.47 (a) 25,000,000 25,000,000
Boatmen's National Bank of St. Louis
3/12/96 5.34 (a) 13,000,000 12,999,268
Comerica Bank-Detroit
3/1/96 5.83 (a) 30,000,000 29,988,779
5/28/96 5.83 15,000,000 15,011,749
First of America Bank - Michigan
3/20/96 5.57 24,000,000 23,999,874
First Union National Bank
3/27/96 5.63 (a) 25,000,000 24,990,045
Huntington National Bank
3/1/96 6.30 (a) 25,000,000 24,992,194
4/30/96 5.60 (a) 25,000,000 25,000,000
5/10/96 5.17 (a) 15,000,000 15,002,206
NBD Bank, N.A.
4/25/96 6.45 14,000,000 13,998,950
6/24/96 5.25 17,000,000 17,000,000
NationsBank of Texas
5/24/96 5.27 9,000,000 9,000,000
6/3/96 5.18 15,000,000 15,000,000
10/17/96 5.78 40,000,000 39,980,687
PNC Bank, N.A.
3/20/96 5.30 (a) 10,000,000 9,996,517
3/20/96 5.31 (a) 26,000,000 25,989,871
Seattle First National Bank
3/4/96 5.37 (a) 10,000,000 9,990,977
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Wachovia Bank of North Carolina, N.A.
3/11/96 5.25% $ 20,000,000 $ 20,000,000
3/26/96 5.27 (a) 25,000,000 24,990,555
TOTAL BANK NOTES 482,924,293
MASTER NOTES (A) - 2.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Goldman Sachs Group, L.P. (The)
5/14/96 5.26 25,000,000 25,000,000
J.P. Morgan Securities
3/20/96 5.31 (a) 46,000,000 46,000,000
Norwest Corp.
3/1/96 5.32 (a) 42,000,000 42,000,000
TOTAL MASTER NOTES 113,000,000
MEDIUM-TERM NOTES - 6.0%
Abbey National Treasury Services (b)
3/9/96 5.69 (a) 54,000,000 54,000,000
Beneficial Corp.
3/27/96 5.29 (a) 9,000,000 8,997,496
4/19/96 5.53 (a) 20,000,000 19,992,920
5/3/96 5.85 (a) 8,000,000 7,996,286
General Electric Capital Corp.
3/1/96 5.53 (a) 25,000,000 24,999,484
3/1/96 6.05 (a) 10,000,000 9,999,259
5/22/96 5.19 (a) 25,000,000 25,005,891
General Motors Acceptance Corp.
4/5/96 5.50 (a) 9,000,000 9,008,629
4/28/96 5.55 (a) 11,000,000 11,034,654
5/1/96 5.43 (a) 26,000,000 26,000,000
Goldman Sachs Group, L.P. (The) (b)
3/1/96 5.91 (a) 17,000,000 17,000,000
John Deere Capital Corp.
3/8/96 5.31 (a) 12,000,000 12,000,000
Norwest Corp.
3/10/96 5.83 (a) 22,000,000 22,000,000
Society National Bank
4/15/96 6.09 15,000,000 15,008,002
Transamerica Life Insurance and Annuity Co.
3/15/96 5.84 (a) 16,000,000 16,000,000
TOTAL MEDIUM-TERM NOTES 279,042,621
SHORT-TERM NOTES (A) - 4.6%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Capital One Funding Corp. (1995-D)
3/7/96 5.29% $ 18,000,000 $ 18,000,000
Capital One Funding Corp. (1995-E)
3/7/96 5.29 10,500,000 10,500,000
Capital One Funding Corp.
3/7/96 5.29 18,314,000 18,314,000
CSA Funding - A
3/7/96 5.30 6,000,000 6,000,000
CSA Funding - B
3/7/96 5.30% 5,000,000 5,000,000
SMM Trust Company (1995-B) (b)
3/4/96 5.49 10,000,000 10,000,000
SMM Trust Company (1995-D) (b)
4/27/96 5.55 23,000,000 23,000,000
SMM Trust Company (1995-I) (b)
3/29/96 5.36 26,000,000 25,998,158
SMM Trust Company (1995-J) (b)
3/15/96 5.33 66,000,000 66,000,000
SMM Trust Company (1995-N) (b)
5/8/96 5.30 12,000,000 12,000,000
SMM Trust Company (1995-P) (b)
3/15/96 5.86 20,000,000 20,000,000
TOTAL SHORT-TERM NOTES 214,812,158
REPURCHASE AGREEMENTS - 1.2%
MATURITY
AMOUNT
With Goldman Sachs & Co.:
At 5.38%, dated 2/1/96 due 5/1/96:
U.S. Government Obligations
(principal amount $51,715,499)
6.366% to 7.266%,
11/1/32 to 2/1/35 $ 50,672,500 50,000,000
In a joint trading account
(U.S. Treasury Obligations)
dated 2/29/96 due 3/1/96:
At 5.48% 3,608,549 3,608,000
TOTAL REPURCHASE AGREEMENTS 53,608,000
TOTAL INVESTMENTS - 100% $ 4,650,494,499
Total Cost for Income Tax Purposes $ 4,650,494,499
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) 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 $227,998,158 or 5.2% of net
assets.
(e) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
INCOME TAX INFORMATION
At August 31, 1995, the fund had a capital loss carryforward of
approximately $278,000 which will expire on August 31, 2002.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 29, 1996 (UNAUDITED)
6.ASSETS 7. 8.
9.Investment in securities, at value (including repurchase agreements of $53,608,000) - See 10. $ 4,650,494,499
accompanying schedule
11.Interest receivable 12. 26,955,977
13. 14.TOTAL ASSETS 15. 4,677,450,476
16.LIABILITIES 17. 18.
19.Payable for investments purchased $ 140,033,356 20.
Regular delivery
21. Delayed delivery 97,553,112 22.
23.Share transactions in process 12,630,042 24.
25.Distributions payable 2,209,345 26.
27.Accrued management fee 1,511,421 28.
29. 30.TOTAL LIABILITIES 31. 253,937,276
32.33.NET ASSETS 34. $ 4,423,513,200
35.Net Assets consist of: 36. 37.
38.Paid in capital 39. $ 4,423,675,438
40.Accumulated net realized gain (loss) on investments 41. (162,238)
42.43.NET ASSETS, for 4,423,675,438 shares outstanding 44. $ 4,423,513,200
45.46.NET ASSET VALUE, offering price and redemption price per share ($4,423,513,200 (divided by) 47. $1.00
4,423,675,438 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED FEBRUARY 29, 1996 (UNAUDITED)
48.49.INTEREST INCOME 50. $ 130,283,897
51.EXPENSES 52. 53.
54.Management fee $ 9,359,997 55.
56.Non-interested trustees' compensation 8,141 57.
58. Total expenses before reductions 9,368,138 59.
60. Expense reductions (2,546,262) 6,821,876
61.62.NET INTEREST INCOME 63. 123,462,021
64.65.NET REALIZED GAIN (LOSS) ON INVESTMENTS 66. 44,243
67.68.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 69. $ 123,506,264
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 29, 1996 AUGUST 31,
(UNAUDITED) 1995
70.INCREASE (DECREASE) IN NET ASSETS
71.Operations $ 123,462,021 $ 199,750,161
Net interest income
72. Net realized gain (loss) 44,243 115,303
73. 74.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 123,506,264 199,865,464
75.Distributions to shareholders from net interest income (123,462,021) (199,750,161)
76.Share transactions at net asset value of $1.00 per share 2,105,413,770 4,357,739,794
Proceeds from sales of shares
77. Reinvestment of distributions from net interest income 120,498,204 199,183,708
78. Cost of shares redeemed (2,152,284,042) (3,007,122,850)
79.80. 73,627,932 1,549,800,652
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
81. 82.TOTAL INCREASE (DECREASE) IN NET ASSETS 73,672,175 1,549,915,955
83.NET ASSETS 84. 85.
86. Beginning of period 4,349,841,025 2,799,925,070
87. End of period $ 4,423,513,200 $ 4,349,841,025
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED AUGUST 31, TEN MONTHS YEAR
ENDED ENDED ENDED
FEBRUARY 29, 1996 AUGUST 31, OCTOBER 31,
(UNAUDITED) 1995 1994 1993 1992 1991
88.SELECTED PER-SHARE DATA
89.Net asset value,
beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
90.Income from
Investment .027 .054 .034 .030 .035 .063
Operations
Net interest income
91.Less
Distributions (.027) (.054) (.034) (.030) (.035) (.063)
From net interest income
92.Net asset
value, end of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
93.TOTAL
RETURN B 2.73% 5.57% 3.41% 3.09% 3.50% 6.52%
94.RATIOS AND SUPPLEMENTAL DATA
95.Net assets,
end of period $ 4,423,513 $ 4,349,841 $ 2,799,925 $ 1,705,966 $ 1,516,346 $ 1,287,650
(000 omitted)
96.Ratio of expenses
to average .30%A, .42% .42% .42% .42% .42%
net assets C A
97.Ratio of net
interest income
to 5.50%A 5.49% 3.44% 3.05% 4.12% 6.19%
average net assets A
</TABLE>
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 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 4 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended February 29, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Retirement 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
organized as a Delaware business trust. 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 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 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.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. Losses may arise due to changes in
the market value of the underlying securities or if the counterparty does
not perform under the contract.
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 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
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE - CONTINUED
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.
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 (FDC), 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.
4. EXPENSE REDUCTIONS.
FMR agreed to reimburse a portion of the fund's expenses. For the period,
the reimbursement reduced the expenses by $2,546,262.
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
Fred L. Henning, Jr., 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
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
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND
SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
* INDEPENDENT TRUSTEES
