INVESTMENTS AUGUST 31, 1996
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 0.3%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
DOMESTIC BANKERS' ACCEPTANCES
Chase Manhattan Bank
9/12/96 5.51% $ 11,819,376 $ 11,799,730
10/7/96 5.48 3,940,606 3,919,525
10/23/96 5.50 1,265,000 1,255,225
TOTAL BANKERS' ACCEPTANCES 16,974,480
CERTIFICATES OF DEPOSIT - 22.0%
DOMESTIC CERTIFICATES OF DEPOSIT - 0.6%
First Tennessee Bank, N.A. Memphis
10/21/96 5.34 10,000,000 10,000,000
Mellon Bank, N.A.
9/4/96 5.43 10,000,000 10,000,000
10/7/96 5.38 10,000,000 10,000,000
30,000,000
CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.6%
ABN-AMRO Bank
12/2/96 5.51 30,000,000 30,000,000
SAN FRANCISCO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.2%
Banque Nationale de Paris
9/3/96 5.12 10,000,000 9,999,951
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 11.7%
Bank of Tokyo-Mitsubishi
10/15/96 5.67 79,000,000 79,000,000
11/7/96 5.51 6,000,000 6,000,164
Bayerische Landesbank Girozentrale (a)
10/30/96 5.74 40,000,000 40,000,000
4/22/97 5.85 32,000,000 32,000,000
Canadian Imperial Bank of Commerce
12/5/96 5.63 12,000,000 12,000,000
Commerzbank, Germany
9/6/96 5.40 40,000,000 40,000,056
9/9/96 5.40 90,000,000 90,000,000
9/13/96 5.32 33,000,000 33,000,000
Commonwealth Bank of Australia
11/8/96 5.42 11,000,000 11,000,000
Deutsche Bank, Germany
12/23/96 5.52 30,000,000 30,000,000
Landesbank Hessen - Thuringen
9/9/96 5.40 25,000,000 24,999,996
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Sanwa Bank, Ltd.
9/3/96 5.49% $ 22,000,000 $ 22,000,000
10/1/96 5.41 4,000,000 3,999,951
10/28/96 5.66 12,000,000 12,000,000
10/31/96 5.68 10,000,000 10,000,000
11/4/96 5.69 32,000,000 32,000,000
Societe Generale
9/3/96 5.13 50,000,000 50,000,000
11/6/96 5.36 17,000,000 17,000,592
12/2/96 5.52 33,000,000 33,000,000
Sumitomo Bank, Ltd.
10/9/96 5.50 23,000,000 23,000,000
10/15/96 5.50 11,000,000 11,000,000
11/14/96 5.50 15,000,000 15,000,000
627,000,759
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 0.6%
Morgan Guaranty Trust Co.
9/6/96 5.45 30,000,000 30,000,244
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 8.3%
Abbey National, Treasury Services
12/3/96 5.52 25,000,000 25,000,000
Bank of Tokyo-Mitsubishi
9/5/96 5.40 5,000,000 5,000,021
10/2/96 5.47 25,000,000 25,002,737
Banque Nationale de Paris
11/12/96 5.39 13,000,000 12,999,987
12/3/96 5.53 20,000,000 20,000,503
Bayerische Hypotheken-und Weschel
9/17/96 5.40 18,000,000 17,999,877
9/23/96 5.41 40,000,000 39,999,467
11/27/96 5.50 40,000,000 39,998,118
Bayerische Vereinsbank A.G.
12/3/96 5.51 48,000,000 48,001,206
Deutsche Bank, A.G.
9/4/96 5.38 30,000,000 30,000,000
9/9/96 5.41 50,000,000 50,000,000
Kredietbank, N.V.
10/15/96 5.38 15,000,000 15,000,273
Swiss Bank Corp.
9/11/96 5.40 10,000,000 10,000,221
10/11/96 5.55 100,000,000 100,002,191
439,004,601
TOTAL CERTIFICATES OF DEPOSIT 1,166,005,555
COMMERCIAL PAPER - 23.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
A.H. Robins Company, Incorporated
9/25/96 5.35% $ 10,253,000 $ 10,216,636
American Express Credit Corp.
10/21/96 5.35 10,000,000 9,926,389
American Home Food Products, Inc.
9/5/96 5.28 4,000,000 3,997,658
American Home Products
9/26/96 5.35 5,000,000 4,981,528
9/27/96 5.36 8,000,000 7,969,262
10/28/96 5.40 5,000,000 4,957,646
Asset Securitization Cooperative Corporation
10/1/96 5.45 10,000,000 9,955,000
10/15/96 5.33 10,000,000 9,935,344
10/21/96 5.35 29,000,000 28,786,528
Associates Corp. of North America
9/10/96 5.33 25,000,000 24,966,875
10/21/96 5.35 22,000,000 21,838,056
10/24/96 5.35 15,000,000 14,882,958
11/8/96 5.43 15,000,000 14,848,417
BHF Finance (Delaware), Inc.
11/18/96 5.37 10,400,000 10,280,573
Bear Stearns Cos., Inc.
10/21/96 5.41 13,000,000 12,903,403
10/31/96 5.44 15,000,000 14,865,875
Beneficial Corp.
10/3/96 5.51 25,000,000 24,878,667
Bradford & Bingley Building Society
10/28/96 5.50 10,000,000 9,914,025
11/25/96 5.65 6,742,000 6,654,288
CIT Group Holdings, Inc.
9/30/96 5.43 15,000,000 14,934,992
Caisse d'Amortissement de la dette Sociale
10/21/96 5.35 5,000,000 4,963,194
10/22/96 5.50 9,000,000 8,930,768
Cheltenham & Gloucester Building Society
10/21/96 5.53 50,000,000 49,621,528
11/21/96 5.39 5,000,000 4,940,150
Citibank Credit Card Master Trust I (Dakota Certificate Program)
10/21/96 5.36 9,000,000 8,933,625
11/12/96 5.39 10,000,000 9,893,600
11/20/96 5.39 14,000,000 13,834,489
CoreStates Capital Corp. (a)
9/5/96 5.42 10,000,000 10,000,000
9/9/96 5.39 5,000,000 5,000,000
Delaware Funding Corporation
10/21/96 5.34 7,108,000 7,055,776
10/21/96 5.35 10,000,000 9,926,389
Eiger Capital Corp.
10/15/96 5.34 7,000,000 6,954,656
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Enterprise Funding Corp.
9/24/96 5.32% $ 14,080,000 $ 14,032,414
10/3/96 5.34 10,000,000 9,952,800
10/3/96 5.47 10,000,000 9,951,822
10/23/96 5.39 10,000,000 9,922,722
11/12/96 5.39 2,015,000 1,993,560
Ford Motor Credit Corp.
10/7/96 5.49 25,000,000 24,864,250
10/22/96 5.52 10,000,000 9,922,933
10/30/96 5.52 12,000,000 11,893,013
GTE Corp.
9/26/96 5.40 9,000,000 8,966,500
9/27/96 5.38 7,000,000 6,972,953
10/4/96 5.38 6,000,000 5,970,575
Generale Bank
10/23/96 5.44 23,000,000 22,821,597
General Electric Capital Corp.
10/22/96 5.51 25,000,000 24,807,688
1/27/97 5.76 33,000,000 32,240,267
1/28/97 5.74 50,000,000 48,845,250
General Electric Co.
10/22/96 5.35 26,000,000 25,804,783
General Motors Acceptance Corp.
9/24/96 5.36 32,000,000 31,891,031
11/26/96 5.68 16,000,000 15,788,631
12/4/96 5.70 20,000,000 19,710,950
2/20/97 5.70 10,000,000 9,735,072
2/24/97 5.71 10,000,000 9,728,667
2/25/97 5.71 21,500,000 20,913,319
Goldman Sachs Group, L.P. (The)
9/10/96 5.32 30,000,000 29,960,250
9/24/96 5.33 10,000,000 9,966,139
Household Finance Corp.
10/22/96 5.35 10,000,000 9,924,917
International Lease Finance Corp.
9/23/96 5.33 5,000,000 4,983,806
Merrill Lynch & Co., Inc.
9/9/96 5.50 25,000,000 24,969,750
Morgan Stanley Group, Inc.
10/21/96 5.35 20,000,000 19,852,778
Nationwide Building Society
9/6/96 5.50 8,000,000 7,993,956
10/15/96 5.53 20,000,000 19,866,778
10/21/96 5.53 60,000,000 59,545,833
11/7/96 5.40 30,000,000 29,702,408
11/8/96 5.42 6,000,000 5,939,367
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
New Center Asset Trust
9/27/96 5.43% $ 22,000,000 $ 21,915,948
9/30/96 5.43 2,000,000 1,991,477
12/2/96 5.63 6,000,000 5,915,667
2/19/97 5.63 12,000,000 11,687,640
Philip Morris Cos., Inc.
9/9/96 5.47 10,000,000 9,987,956
10/30/96 5.50 14,000,000 13,875,412
Preferred Receivables Funding Corp.
9/10/96 5.45 23,200,000 23,168,680
9/19/96 5.31 15,000,000 14,960,325
10/15/96 5.37 25,000,000 24,837,444
Sears Roebuck Acceptance Corp.
10/8/96 5.51 10,000,000 9,943,986
10/21/96 5.36 10,000,000 9,926,250
10/30/96 5.58 15,000,000 14,864,792
Sherwood Medical Company
9/4/96 5.46 2,000,000 1,999,097
9/26/96 5.36 11,303,000 11,261,242
Textron, Inc.
9/6/96 5.49 3,000,000 2,997,725
9/11/96 5.50 2,000,000 1,996,956
9/16/96 5.50 6,000,000 5,986,326
9/18/96 5.47 5,000,000 4,987,132
10/1/96 5.50 5,000,000 4,977,208
Unifunding, Inc.
9/3/96 5.44 18,000,000 17,994,635
Woolwich Building Society
9/9/96 5.45 25,000,000 24,970,278
TOTAL COMMERCIAL PAPER 1,241,431,250
FEDERAL AGENCIES - 23.3%
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 1.5%
9/13/96 5.49 25,000,000 24,995,573
9/20/96 5.44 20,000,000 19,996,218
10/2/96 5.46 35,000,000 34,997,367
79,989,158
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 2.8%
9/30/96 5.30 93,445,000 93,049,053
1/17/97 5.54 15,215,000 14,902,966
1/21/97 5.54 8,785,000 8,599,612
1/23/97 5.54 30,995,000 30,331,707
146,883,338
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 3.4%
9/3/96 5.32% $ 10,000,000 $ 9,997,083
9/5/96 5.37 45,483,000 45,456,115
9/9/96 5.32 39,000,000 38,954,500
9/16/96 5.38 53,684,000 53,565,000
10/15/96 5.40 19,681,000 19,552,909
10/17/96 5.43 11,540,000 11,460,964
178,986,571
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 8.6%
9/2/96 5.41 65,000,000 64,966,395
9/3/96 5.44 100,000,000 100,000,000
9/3/96 5.47 40,000,000 40,000,000
9/15/96 5.36 50,000,000 49,966,911
9/20/96 5.44 90,000,000 89,979,053
9/20/96 5.47 15,000,000 14,991,289
9/29/96 5.35 33,000,000 32,977,886
10/5/96 5.68 14,000,000 13,998,904
10/17/96 5.56 36,000,000 35,989,476
11/1/96 5.59 15,000,000 14,991,355
457,861,269
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 6.6%
9/3/96 5.32 40,000,000 39,988,333
9/5/96 5.33 6,200,000 6,196,376
9/6/96 5.34 80,000,000 79,941,445
9/6/96 5.37 10,000,000 9,992,611
9/9/96 5.34 40,000,000 39,953,200
9/12/96 5.34 60,000,000 59,903,475
9/13/96 5.38 7,535,000 7,521,638
9/17/96 5.38 48,600,000 48,485,088
10/21/96 5.44 10,000,000 9,925,555
2/3/97 5.62 50,000,000 48,824,583
350,732,304
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 0.4%
10/16/96 5.68 20,000,000 20,000,000
TOTAL FEDERAL AGENCIES 1,234,452,640
U.S. TREASURY OBLIGATIONS - 0.8%
U.S. TREASURY BILLS
8/21/97 5.79 45,000,000 42,575,100
BANK NOTES - 8.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Bank of America National Trust & Savings Assoc. (a)
9/3/96 5.43% $ 25,000,000 $ 24,999,921
Bank of America, NW, N.A. (a)
9/4/96 5.44 10,000,000 9,996,949
Bank of New York
9/3/96 5.16 10,000,000 10,000,000
Bank of New York - Delaware (a)
10/30/96 5.78 25,000,000 25,000,000
Bank One, Milwaukee, N.A. (a)
9/3/96 5.39 50,000,000 49,976,351
Comerica Bank - Detroit (a)
9/1/96 5.45 30,000,000 29,999,879
First National Bank of Chicago
9/4/96 5.41 30,000,000 30,000,000
First Union National Bank of North Carolina, N.A. (a)
9/27/96 5.51 25,000,000 24,996,130
Household Bank FSB
10/22/96 5.35 8,000,000 8,000,000
Huntington National Bank (a)
10/30/96 5.73 25,000,000 25,000,000
Key Bank, N.A. (a)
9/3/96 5.39 15,000,000 14,991,324
9/3/96 5.40 25,000,000 24,981,420
Key Bank of New York (a)
9/3/96 5.40 27,000,000 26,983,273
Morgan Guaranty Trust Co. (a)
6/6/97 6.00 10,000,000 9,996,344
NationsBank of Texas
10/17/96 5.78 40,000,000 39,996,137
Nova Scotia Bank (a)
11/3/96 5.65 25,000,000 25,000,000
PNC Bank (a)
9/9/96 5.44 32,000,000 31,982,776
9/20/96 5.42 10,000,000 9,998,697
9/20/96 5.44 26,000,000 25,996,210
Wachovia Bank of North Carolina, N.A. (a)
9/26/96 5.37 25,000,000 24,997,857
TOTAL BANK NOTES 472,893,268
MASTER NOTES (A) - 2.6%
Goldman Sachs Group, L.P. (The)
11/8/96 5.50 25,000,000 25,000,000
J.P. Morgan Securities
9/6/96 5.43 84,000,000 84,000,000
Norwest Corp.
9/3/96 5.41 32,000,000 32,000,000
TOTAL MASTER NOTES 141,000,000
MEDIUM-TERM NOTES (A) - 4.3%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Abbey National Treasury Services (b)
9/9/96 5.57% $ 54,000,000 $ 54,000,000
Beneficial Corp.
9/27/96 5.39 9,000,000 8,999,690
10/19/96 5.63 20,000,000 19,996,642
11/3/96 5.65 8,000,000 7,998,758
CIT Group Holdings, Inc.
9/3/96 5.40 20,000,000 19,998,815
General Motors Acceptance Corp.
10/23/96 5.67 11,000,000 11,007,636
11/1/96 5.68 26,000,000 26,000,000
2/13/97 5.35 11,000,000 10,999,637
Merrill Lynch & Co., Inc.
9/18/96 5.42 22,000,000 21,995,637
Norwest Corp.
9/10/96 5.61 22,000,000 22,000,000
Transamerica Life Insurance and Annuity Co.
9/3/96 (c) 5.47 10,000,000 10,000,000
9/15/96 5.61 16,000,000 16,000,000
TOTAL MEDIUM-TERM NOTES 228,996,815
SHORT-TERM NOTES (A) - 5.7%
CSA Funding - C
9/9/96 5.45 5,000,000 5,000,000
Capital One Funding Corp. (1994-C)
9/9/96 5.42 9,261,000 9,261,000
Capital One Funding Corp. (1994-E)
9/9/96 5.42 8,709,000 8,709,000
Capital One Funding Corp. (1995-D)
9/9/96 5.42 17,403,000 17,403,000
Capital One Funding Corp. (1995-E)
9/9/96 5.42 10,400,000 10,400,000
Liquid Asset Backed Securities Trust (1996-1) (b)
9/15/96 5.45 28,000,000 28,000,000
Liquid Asset Backed Securities Trust (1996-2) (b)
9/3/96 5.41 35,000,000 35,000,000
SMM Trust (1995-D) (b)
10/27/96 5.68 23,000,000 23,000,000
SMM Trust (1995-N) (b)
11/8/96 5.55 12,000,000 12,000,000
SMM Trust (1995-P) (b)
9/15/96 5.66 20,000,000 20,000,000
SMM Trust (1996-I) (b)
9/30/96 5.46 45,000,000 45,000,000
SMM Trust (1996-V) (b)
9/26/96 5.62 89,000,000 89,000,000
TOTAL SHORT-TERM NOTES 302,773,000
TIME DEPOSITS - 3.2%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Canadian Imperial Bank of Commerce
9/3/96 5.31% $ 100,000,000 $ 100,000,000
Sanwa Bank, Ltd.
10/4/96 5.44 15,000,000 15,000,000
Sumitomo Bank, Ltd.
9/12/96 5.50 28,000,000 28,000,000
9/13/96 5.47 12,000,000 12,000,000
9/30/96 5.41 15,000,000 15,000,000
TOTAL TIME DEPOSITS 170,000,000
MUNICIPAL SECURITIES - 0.1%
New York Gen. Oblig.
9/10/96 5.52 6,665,000 6,665,000
REPURCHASE AGREEMENTS - 5.4%
MATURITY
AMOUNT
In a joint trading account
(U.S. Government Obligations):
dated 8/30/96 due 9/3/96
At 5.31% $ 136,644,591 136,564,000
dated 8/5/96 due 9/5/96
At 5.37% 50,231,208 50,000,000
dated 8/22/96 due 9/5/96
At 5.27% 100,204,944 100,000,000
TOTAL REPURCHASE AGREEMENTS 286,564,000
TOTAL INVESTMENTS - 100% $ 5,310,331,108
Total Cost for Income Tax Purposes $ 5,310,331,108
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 $306,000,000 or 5.7% of net
assets.
3. 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
Transamerica Life Insurance
and Annuity Co. 5/8/96 $ 10,000,000
INCOME TAX INFORMATION
At August 31, 1996, the fund had a capital loss carryforward of
approximately $320,000 of which $278,000 and $42,000 will expire on August
31, 2002 and 2004, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1996
4.ASSETS 5. 6.
7.Investment in securities, at value (including repurchase agreements of $286,564,000) - 8. $ 5,310,331,108
See accompanying schedule
9.Cash 10. 3,966,668
11.Interest receivable 12. 31,895,457
13. 14.TOTAL ASSETS 15. 5,346,193,233
16.LIABILITIES 17. 18.
19.Payable for investments purchased $ 15,000,000 20.
21.Distributions payable 2,035,315 22.
23.Accrued management fee 1,900,701 24.
25. 26.TOTAL LIABILITIES 27. 18,936,016
28.29.NET ASSETS 30. $ 5,327,257,217
31.Net Assets consist of: 32. 33.
34.Paid in capital 35. $ 5,327,505,772
36.Accumulated net realized gain (loss) on investments 37. (248,555)
38.39.NET ASSETS, for 5,327,505,772 shares outstanding 40. $ 5,327,257,217
41.42.NET ASSET VALUE, offering price and redemption price per share 43. $1.00
($5,327,257,217 (divided by) 5,327,505,772 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1996
44.45.INTEREST INCOME 46. $ 272,488,399
47.EXPENSES 48. 49.
50.Management fee $ 20,243,808 51.
52.Non-interested trustees' compensation 19,733 53.
54. Total expenses before reductions 20,263,541 55.
56. Expense reductions (3,939,900) 16,323,641
57.58.NET INTEREST INCOME 59. 256,164,758
60.61.NET REALIZED GAIN (LOSS) ON INVESTMENTS 62. (42,074)
63.64.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 65. $ 256,122,684
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1996 1995
66.INCREASE (DECREASE) IN NET ASSETS
67.Operations $ 256,164,758 $ 199,750,161
Net interest income
68. Net realized gain (loss) (42,074) 115,303
69. 70.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 256,122,684 199,865,464
71.Distributions to shareholders from net interest income (256,164,758) (199,750,161)
72.Share transactions at net asset value of $1.00 per share 5,429,621,106 4,357,739,794
Proceeds from sales of shares
73. Reinvestment of distributions from net interest income 252,826,219 199,183,708
74. Cost of shares redeemed (4,704,989,059) (3,007,122,850)
75.76. 977,458,266 1,549,800,652
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
77. 78.TOTAL INCREASE (DECREASE) IN NET ASSETS 977,416,192 1,549,915,955
79.NET ASSETS 80. 81.
82. Beginning of period 4,349,841,025 2,799,925,070
83. End of period $ 5,327,257,217 $ 4,349,841,025
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
84. YEARS ENDED AUGUST 31, TEN MONTHS
ENDED
AUGUST 31,
85. 1996 1995 1994 1993 1992
86.SELECTED PER-SHARE DATA
87.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
88.Income from Investment Operations .053 .054 .034 .030 .035
Net interest income
89.Less Distributions (.053) (.054) (.034) (.030) (.035)
From net interest income
90.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
91.TOTAL RETURN B 5.40% 5.57% 3.41% 3.09% 3.50%
92.RATIOS AND SUPPLEMENTAL DATA
93.Net assets, end of period (000 omitted) $ 5,327,257 $ 4,349,841 $ 2,799,925 $ 1,705,966 $ 1,516,346
94.Ratio of expenses to average net assets .37% .42% .42% .42% .42%
C A
95.Ratio of expenses to average net assets after .34% .42% .42% .42% .42%
expense reductions D A
96.Ratio of net interest income to average net assets 5.31% 5.49% 3.44% 3.05% 4.12%
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).
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 4 OF
NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1996
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 for U.S. Treasury or Federal
Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, 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 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 $10,000,000 or
0.2% 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 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.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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 its 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. FMR or FDC has informed the fund that
payments made to third parties under the Plan, including expenses incurred
in connection with marketing, sales, servicing, and other activities,
amounted to approximately $37,000 for the period.
4. EXPENSE REDUCTIONS.
FMR agreed to reimburse a portion of the fund's operating expenses. For the
period, the reimbursement reduced the expenses by $2,546,262.
In addition, FMR has entered into arrangements on behalf of the fund with
the fund's custodian and transfer agent whereby interest earned on
uninvested cash balances was used to offset a portion of the fund's
expenses. During the period, the fund's expenses were reduced by $1,393,638
under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Money Market Trust and the Shareholders of
Retirement Money Market Portfolio:
We have audited the accompanying statement of assets and liabilities of
Fidelity Money Market Trust: Retirement Money Market Portfolio, including
the schedule of portfolio investments, as of August 31, 1996, the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended, and the
financial highlights for each of the four years in the period then ended,
and for the ten month period ended August 31, 1992. 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, 1996 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 the Fidelity Money Market Trust: Retirement Money Market Portfolio as of
August 31, 1996, 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 applicable periods set
forth above, in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
October 8, 1996
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 K. Duby, 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 *
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 *
ADVISORY BOARD
Willian O. McCoy
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
INVESTMENTS AUGUST 31, 1996
Showing Percentage of Total Value of Investments
FEDERAL AGENCIES - 66.3%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS (A) - 2.3%
9/3/96 5.59% $ 60,000,000 $ 59,973,231
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 6.6%
9/3/96 5.78 24,000,000 23,992,782
9/20/96 5.34 50,000,000 49,997,358
9/24/96 5.34 55,000,000 54,996,649
9/28/96 5.32 46,000,000 45,964,536
174,951,325
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 1.2%
1/29/97 5.64 33,000,000 32,246,500
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 3.7%
9/17/96 5.43 53,000,000 52,873,978
11/4/96 5.43 46,000,000 45,562,489
98,436,467
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 30.7%
9/3/96 5.23 77,000,000 76,990,069
9/3/96 5.31 119,000,000 118,945,583
9/3/96 5.32 102,000,000 101,947,902
9/3/96 (b) 5.33 121,000,000 120,893,447
9/3/96 5.34 65,000,000 65,378,670
9/3/96 5.44 31,000,000 31,000,000
9/3/96 5.46 32,000,000 31,967,190
9/3/96 5.47 71,000,000 71,000,000
9/3/96 5.85 59,000,000 59,000,000
9/11/96 5.33 32,000,000 31,996,643
9/20/96 5.47 30,000,000 29,982,579
11/1/96 5.59 58,000,000 57,966,572
11/21/96 5.40 19,000,000 18,992,463
816,061,118
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 18.4%
9/5/96 5.03 61,000,000 60,966,789
9/6/96 5.34 37,000,000 36,972,918
9/9/96 5.34 27,000,000 26,968,410
9/11/96 5.34 44,000,000 43,935,650
9/17/96 5.43 80,000,000 79,809,778
10/16/96 5.37 63,000,000 62,588,925
10/21/96 5.43 23,000,000 22,829,097
10/23/96 5.43 19,650,000 19,498,149
11/4/96 5.35 40,000,000 39,624,533
11/8/96 5.36 19,000,000 18,810,148
2/4/97 5.45 79,000,000 77,185,633
489,190,030
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 3.4%
9/3/96 5.31% $ 55,000,000 $ 55,043,059
9/3/96 5.45 35,000,000 35,000,000
90,043,059
TOTAL FEDERAL AGENCIES 1,760,901,730
U.S. TREASURY OBLIGATIONS - 6.7%
U.S. TREASURY BILLS
4/3/97 5.54 59,000,000 57,155,470
4/3/97 5.55 53,000,000 51,344,293
8/21/97 5.63 13,000,000 12,316,019
8/21/97 5.66 13,000,000 12,318,720
8/21/97 5.67 47,500,000 44,996,228
TOTAL U.S. TREASURY OBLIGATIONS 178,130,730
MEDIUM-TERM NOTES (A) (C) - 0.3%
Export-Import Bank, U.S. (as guarantor for K.A. Leasing, Ltd.)
9/15/96 5.44 6,728,794 6,728,794
REPURCHASE AGREEMENTS - 26.7%
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account
(Notes 2 and 3)
(U.S. Government Obligations):
dated 8/30/96 due 9/3/96
At 5.31% $ 409,791,688 409,550,000
dated 8/5/96 due 9/4/96
At 5.37% 31,138,725 31,000,000
dated 8/22/96 due 9/5/96
At 5.27% 49,100,423 49,000,000
REPURCHASE AGREEMENTS - CONTINUED
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account
(Notes 2 and 3)
(U.S. Government Obligations): - continued
dated 8/8/96 due 9/10/96
At 5.34% $ 109,533,555 $ 109,000,000
dated 8/19/96 due 9/18/96
At 5.33% 110,488,583 110,000,000
TOTAL REPURCHASE AGREEMENTS 708,550,000
TOTAL INVESTMENTS - 100% $ 2,654,311,254
Total Cost for Income Tax Purposes $ 2,654,311,254
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 purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
3. 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
Export-Import Bank, U.S.
(As guarantor for
K.A. Leasing, Ltd.) 7/8/94 $ 6,728,794
INCOME TAX INFORMATION
At August 31, 1996, the fund had a capital loss carryforward of
approximately $336,000 of which $4,000, $47,000, $178,000, $105,000 and
$2,000 will expire on August 31, 2000, 2001, 2002, 2003 and 2004,
respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1996
4.ASSETS 5. 6.
7.Investment in securities, at value (including repurchase agreements of $708,550,000) - 8. $ 2,654,311,254
See accompanying schedule
9.Interest receivable 10. 9,797,639
11. 12.TOTAL ASSETS 13. 2,664,108,893
14.LIABILITIES 15. 16.
17.Payable for investments purchased $ 120,893,447 18.
Delayed delivery
19.Share transactions in process 18,606,601 20.
21.Distributions payable 1,089,259 22.
23.Accrued management fee 912,655 24.
25. 26.TOTAL LIABILITIES 27. 141,501,962
28.29.NET ASSETS 30. $ 2,522,606,931
31.Net Assets consist of: 32. 33.
34.Paid in capital 35. $ 2,522,845,253
36.Accumulated net realized gain (loss) on investments 37. (238,322)
38.39.NET ASSETS, for 2,522,845,253 shares outstanding 40. $ 2,522,606,931
41.42.NET ASSET VALUE, offering price and redemption price per share 43. $1.00
($2,522,606,931 (divided by) 2,522,845,253 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1996
44.45.INTEREST INCOME 46. $ 134,456,680
47.EXPENSES 48. 49.
50.Management fee $ 10,049,935 51.
52.Non-interested trustees' compensation 9,919 53.
54. Total expenses before reductions 10,059,854 55.
56. Expense reductions (1,917,056) 8,142,798
57.58.NET INTEREST INCOME 59. 126,313,882
60.61.NET REALIZED GAIN (LOSS) ON INVESTMENTS 62. (1,541)
63.64.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 65. $ 126,312,341
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1996 1995
66.INCREASE (DECREASE) IN NET ASSETS
67.Operations $ 126,313,882 $ 107,569,666
Net interest income
68. Net realized gain (loss) (1,541) (105,133)
69. 70.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 126,312,341 107,464,533
71.Distributions to shareholders from net interest income (126,313,882) (107,569,666)
72.Share transactions at net asset value of $1.00 per share 2,194,070,961 1,748,370,223
Proceeds from sales of shares
73. Reinvestment of distributions from net interest income 124,852,098 107,368,815
74. Cost of shares redeemed (2,066,690,779) (1,240,661,774)
75.76. 252,232,280 615,077,264
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
77. 78.TOTAL INCREASE (DECREASE) IN NET ASSETS 252,230,739 614,972,131
79.NET ASSETS 80. 81.
82. Beginning of period 2,270,376,192 1,655,404,061
83. End of period $ 2,522,606,931 $ 2,270,376,192
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
84. YEARS ENDED AUGUST 31, TEN MONTHS
ENDED
AUGUST 31,
85. 1996 1995 1994 1993 1992
86.SELECTED PER-SHARE DATA
87.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
88.Income from Investment Operations .052 .053 .032 .029 .034
Net interest income
89.Less Distributions (.052) (.053) (.032) (.029) (.034)
From net interest income
90.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
91.TOTAL RETURN B 5.36% 5.46% 3.27% 2.95% 3.47%
92.RATIOS AND SUPPLEMENTAL DATA
93.Net assets, end of period (000 omitted) $ 2,522,607 $ 2,270,376 $ 1,655,404 $ 1,393,583 $ 1,236,529
94.Ratio of expenses to average net assets .37% .42% .42% .42% .42%
C A
95.Ratio of expenses to average net assets after .34% .42% .42% .42% .42%
expense reductions D A
96.Ratio of net interest income to average net assets 5.27% 5.38% 3.26% 2.90% 4.08%
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 5 OF NOTES TO FINANCIAL STATEMENTS).
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 5 OF
NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1996
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 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 for U.S. Treasury or Federal
Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, 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 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 $6,728,794 or
0.3% of net assets.
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. 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 $409,791,688 at 5.31%, $31,138,725 at 5.37%, $49,100,423
at $5.27%, $109,533,555 at 5.34% and $110,488,583 at 5.33%, respectively.
The investments in repurchase agreements through the joint trading account
are summarized as follows:
SUMMARY OF JOINT TRADING
DATED AUGUST 30, 1996, DUE SEPTEMBER 3, 1996 5.31%
Number of dealers or banks 6
Maximum amount with one dealer or bank 38.7%
Aggregate principal amount of agreements $2,325,000,000
Aggregate maturity amount of agreements $2,326,372,056
Aggregate market value of transferred assets $2,395,040,864
Coupon rates of transferred assets 0.0% to 12.50%
Maturity dates of transferred assets 9/16/96 to 4/1/35
DATED AUGUST 5, 1996, DUE SEPTEMBER 4, 1996 5.37%
Number of dealers or banks 2
Maximum amount with one dealer or bank 51.7%
Aggregate principal amount of agreements $207,000,000
Aggregate maturity amount of agreements $207,926,325
Aggregate market value of transferred assets $213,579,234
Coupon rates of transferred assets 6.00% to 12.00%
Maturity dates of transferred assets 2/15/98 to 7/15/26
DATED AUGUST 22, 1996, DUE SEPTEMBER 5, 1996 5.27%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $475,000,000
Aggregate maturity amount of agreements $475,973,486
Aggregate market value of transferred assets $489,400,164
Coupon rates of transferred assets 5.35% to 9.50%
Maturity dates of transferred assets 12/1/97 to 4/1/35
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED AUGUST 8, 1996, DUE SEPTEMBER 10, 1996 5.34%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,979,000
Aggregate market value of transferred assets $206,672,670
Coupon rates of transferred assets 5.50% to 11.00%
Maturity dates of transferred assets 6/1/01 to 8/1/26
DATED AUGUST 19, 1996, DUE SEPTEMBER 18, 1996 5.33%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,888,333
Aggregate market value of transferred assets $206,341,504
Coupon rates of transferred assets 6.50% to 8.00%
Maturity dates of transferred assets 6/1/03 to 11/1/35
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 its 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. FMR or FDC has informed the fund that
payments made to third parties under the Plan, including expenses incurred
in connection with marketing, sales, servicing, and other activities,
amounted to approximately $44,000 for the period.
5. EXPENSE REDUCTIONS.
FMR agreed to reimburse a portion of the fund's operating expenses. For the
period, the reimbursement reduced the expenses by $1,307,783.
In addition, FMR has entered into arrangements on behalf of the fund with
the fund's custodian and transfer agent whereby interest earned on
uninvested cash balances was used to offset a portion of the fund's
expenses. During the period, the fund's expenses were reduced by $609,273
under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Money Market Trust and the Shareholders of
Retirement Government Money Market Portfolio:
We have audited the accompanying statement of assets and liabilities of
Fidelity Money Market Trust: Retirement Government Money Market Portfolio,
including the schedule of portfolio investments, as of August 31, 1996, the
related statement of operations for the year then ended, the statement of
changes in net assets for each of the two years in the period then ended,
and the financial highlights for each of the four years in the period then
ended, and for the ten month period ended August 31, 1992. 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, 1996 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 the Fidelity Money Market Trust: Retirement Government Money Market
Portfolio as of August 31, 1996, 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 applicable
periods set forth above, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
October 8, 1996
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
Leland C. Barron, 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 *
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 *
ADVISORY BOARD
Willian O. McCoy
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
