INVESTMENTS AUGUST 31, 1997
Showing Percentage of Total Value of Investments in Securities
FEDERAL AGENCIES - 47.8%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS - 3.5%
4/1/98 6.01% $ 73,000,000 $ 72,907,891
9/2/98 5.70 30,000,000 29,961,600
102,869,491
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 11.2%
9/2/97 5.50 (a) 45,000,000 44,965,350
9/2/97 5.54 (a) 93,000,000 92,993,844
9/19/97 5.65 (a) 55,000,000 54,978,137
3/18/98 5.88 75,000,000 75,000,000
6/9/98 5.89 33,000,000 32,996,659
6/11/98 5.88 5,000,000 4,998,023
6/12/98 5.81 23,000,000 22,983,894
328,915,907
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 1.8%
10/30/97 5.79 32,000,000 31,704,738
12/31/97 5.59 19,640,000 19,281,224
50,985,962
FEDERAL HOME LOAN MORTGAGE CORP. - AGENCY COUPONS - 1.9%
3/17/98 5.79 27,000,000 26,978,432
4/8/98 6.04 28,000,000 27,955,766
54,934,198
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 21.7%
9/2/97 5.58 (a) 65,000,000 65,160,204
9/2/97 5.67 (a) 121,000,000 120,997,968
9/4/97 5.54 (a) 61,000,000 60,990,643
9/9/97 5.71 (a) 49,000,000 48,988,437
9/13/97 5.71 (a) 25,000,000 24,990,601
9/15/97 5.53 125,000,000 124,899,635
3/18/98 5.91 25,000,000 24,962,806
4/15/98 6.06 33,000,000 32,976,502
4/17/98 6.11 28,000,000 27,968,572
5/21/98 5.96 34,000,000 33,964,490
8/14/98 5.71 55,000,000 54,902,070
9/9/98 5.72 16,000,000 15,978,080
636,780,008
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 7.7%
9/4/97 5.50 32,525,000 32,510,222
9/5/97 5.58 115,375,000 115,304,493
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
10/14/97 5.60% $ 10,000,000 $ 9,934,544
10/24/97 5.78 69,000,000 68,429,102
226,178,361
TOTAL FEDERAL AGENCIES 1,400,663,927
MEDIUM-TERM NOTES - 0.1%
EXPORT-IMPORT BANK, U.S.
(AS GUARANTOR FOR K.A. LEASING, LTD.) (A)(B)
9/15/97 5.75 2,926,915 2,926,915
REPURCHASE AGREEMENTS - 52.1%
MATURITY
AMOUNT
In a joint trading account (Note 2 & 3):
(U.S. Treasury Obligations)
dated 8/29/97 due 9/2/97
At 5.62% $ 910,534,720 909,967,000
(U.S. Government Obligations):
dated 8/11/97 due 9/2/97
At 5.58% 32,109,120 32,000,000
dated 8/20/97 due 9/2/97
At 5.50% 13,025,819 13,000,000
dated 8/29/97 due 9/2/97
At 5.58% 47,029,142 47,000,000
dated 8/1/97 due 9/3/97
At 5.55% 164,834,350 164,000,000
dated 8/7/97 due 9/8/97
At 5.55% 119,587,067 119,000,000
dated 8/4/97 due 11/3/97
At 5.58% 197,750,475 195,000,000
dated 8/19/97 due 11/6/97
At 5.58% 48,587,760 48,000,000
TOTAL REPURCHASE AGREEMENTS 1,527,967,000
TOTAL INVESTMENTS - 100% $ 2,931,557,842
Total Cost for Income Tax Purposes $ 2,931,557,842
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2. 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 $2,926,915
INCOME TAX INFORMATION
At August 31, 1997, the fund had a capital loss carryforward of
approximately $278,000 of which $171,000, $105,000 and $2,000 will
expire on August 31, 2002, 2003, and 2004, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1997
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE AGREEMENTS OF $1,527,967,000) - $ 2,931,557,842
SEE ACCOMPANYING SCHEDULE
CASH 321
INTEREST RECEIVABLE 16,103,877
TOTAL ASSETS 2,947,662,040
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 45,939,680
SHARE TRANSACTIONS IN PROCESS 679,248
DISTRIBUTIONS PAYABLE 144,421
ACCRUED MANAGEMENT FEE 1,038,198
OTHER PAYABLES AND ACCRUED EXPENSES 19,009
TOTAL LIABILITIES 47,820,556
NET ASSETS $ 2,899,841,484
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 2,900,119,880
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (278,396)
NET ASSETS, FOR 2,900,022,080 SHARES OUTSTANDING $ 2,899,841,484
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE $1.00
($2,899,841,484 (DIVIDED BY) 2,900,022,080 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1997
INTEREST INCOME $ 152,063,136
EXPENSES
MANAGEMENT FEE $ 11,491,015
NON-INTERESTED TRUSTEES' COMPENSATION 19,642
TOTAL EXPENSES BEFORE REDUCTIONS 11,510,657
EXPENSE REDUCTIONS (862,945) 10,647,712
NET INTEREST INCOME 141,415,424
NET REALIZED GAIN (LOSS) ON INVESTMENTS 57,726
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 141,473,150
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1997 1996
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 141,415,424 $ 126,313,882
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 57,726 (1,541)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 141,473,150 126,312,341
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (141,415,424) (126,313,882)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 3,458,323,232 2,194,070,961
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 141,415,424 124,852,098
COST OF SHARES REDEEMED (3,222,561,829) (2,066,690,779)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS 377,176,827 252,232,280
TOTAL INCREASE (DECREASE) IN NET ASSETS 377,234,553 252,230,739
NET ASSETS
BEGINNING OF PERIOD 2,522,606,931 2,270,376,192
END OF PERIOD $ 2,899,841,484 $ 2,522,606,931
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED AUGUST 31,
1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS .052 .052 .053 .032 .029
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.052) (.052) (.053) (.032) (.029)
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 5.31% 5.36% 5.46% 3.27% 2.95%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000 OMITTED) $ 2,899,841 $ 2,522,607 $ 2,270,376 $ 1,655,404 $ 1,393,583
RATIO OF EXPENSES TO AVERAGE NET ASSETS .42% .37% B .42% .42% .42%
RATIO OF EXPENSES TO AVERAGE NET ASSETS
AFTER EXPENSE REDUCTIONS .39% C .34% C .42% .42% .42%
RATIO OF NET INTEREST INCOME TO AVERAGE
NET ASSETS 5.16% 5.27% 5.38% 3.26% 2.90%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
B 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.
C 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, 1997
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 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 SEC),
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 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 $2,926,915 or 0.1% 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 $13,025,819 at 5.50%,
$32,109,120 at 5.58%, $164,834,350 at 5.55%, $119,587,067 at 5.55%,
$197,750,475 at 5.58%, $48,587,460 at 5.58%, $47,029,142 at 5.58%, and
3. JOINT TRADING ACCOUNT - CONTINUED
$910,534,720 at 5.62%. The investments in repurchase agreements
through the joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
DATED AUGUST 29, 1997, DUE SEPTEMBER 2, 1997 5.62%
Number of dealers or banks 8
Maximum amount with one dealer or bank 23.0%
Aggregate principal amount of agreements $1,654,926,000
Aggregate maturity amount of agreements $1,655,958,493
Aggregate market value of transferred assets $1,705,214,891
Coupon rates of transferred assets 0% to 14.50%
Maturity dates of transferred assets 11/1/01 to 4/1/37
DATED AUGUST 20, 1997, DUE SEPTEMBER 2, 1997 5.50%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $225,000,000
Aggregate maturity amount of agreements $225,446,875
Aggregate market value of transferred assets $233,057,959
Coupon rates of transferred assets 0% to 12%
Maturity dates of transferred assets 1/1/04 to 12/1/33
DATED AUGUST 11, 1997, DUE SEPTEMBER 2, 1997 5.58%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $100,000,000
Aggregate maturity amount of agreements $100,341,000
Aggregate market value of transferred assets $103,291,421
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 8/1/01 to 11/1/35
DATED AUGUST 29, 1997, DUE SEPTEMBER 2, 1997 5.58%
Number of dealers or banks 10
Maximum amount with one dealer or bank 22.4%
Aggregate principal amount of agreements $6,161,592,000
Aggregate maturity amount of agreements $6,165,412,489
Aggregate market value of transferred assets $6,294,517,367
Coupon rates of transferred assets 0% to 15.75%
Maturity dates of transferred assets 8/31/97 to 7/1/35
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED AUGUST 1, 1997, DUE SEPTEMBER 3, 1997 5.58%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $525,000,000
Aggregate maturity amount of agreements $527,670,938
Aggregate market value of transferred assets $540,750,001
Coupon rates of transferred assets 0.59% to 8.35%
Maturity dates of transferred assets 7/1/19 to 9/1/36
DATED AUGUST 7, 1997, DUE SEPTEMBER 8, 1997 5.55%
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 $200,986,667
Aggregate market value of transferred assets $207,446,405
Coupon rates of transferred assets 0% to 8.50%
Maturity dates of transferred assets 9/1/97 to 12/1/34
DATED AUGUST 4, 1997, DUE NOVEMBER 3, 1997 5.58%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $600,000,000
Aggregate maturity amount of agreements $608,463,000
Aggregate market value of transferred assets $620,397,119
Coupon rates of transferred assets 0% to 12%
Maturity dates of transferred assets 9/1/98 to 2/1/37
DATED AUGUST 19, 1997, DUE NOVEMBER 6, 1997 5.58%
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 $202,449,000
Aggregate market value of transferred assets $206,356,026
Coupon rates of transferred assets 5.50% to 12%
Maturity dates of transferred assets 4/1/00 to 9/1/27
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.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the
fund's custodian and transfer agent whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of
the fund's expenses. During the period, the fund's expenses were
reduced by $862,945 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, 1997, and 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 five years in the period then ended. 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, 1997 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: Retirement
Government Money Market Portfolio as of August 31, 1997, 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 five years in the period then
ended, in conformity with generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
October 10, 1997
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Fred L. Henning, Jr., VICE PRESIDENT
Boyce I. Greer, VICE PRESIDENT
Robert Litterst, VICE PRESIDENT
Arthur S. Loring, SECRETARY
Richard A. Silver, 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
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
INVESTMENTS AUGUST 31, 1997
Showing Percentage of Total Value of Investments in Securities
CERTIFICATES OF DEPOSIT - 41.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
DOMESTIC CERTIFICATES OF DEPOSIT - 2.1%
Chase Manhattan Bank (USA) Delaware
9/9/97 5.57% $ 25,000,000 $ 25,000,000
2/9/98 5.75 34,000,000 34,000,000
CoreStates Capital Corp. (a)
9/4/97 5.59 8,000,000 8,000,000
9/30/97 5.59 10,000,000 9,999,090
Morgan Guaranty Trust, NY
3/20/98 6.00 29,000,000 28,990,890
8/6/98 5.90 26,000,000 25,992,847
131,982,827
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 31.0%
Bank of Montreal
9/16/97 5.53 116,000,000 116,000,000
Bank of Nova Scotia
11/12/97 5.60 29,000,000 29,000,000
7/21/98 5.97 8,000,000 7,989,047
8/31/98 5.97 20,000,000 19,987,507
Bank of Tokyo - Mitsubishi Ltd.
9/30/97 5.76 35,000,000 35,000,000
10/7/97 5.70 4,000,000 4,000,344
Banque Nationale de Paris
9/3/97 5.52 25,000,000 25,000,006
9/22/97 5.56 84,000,000 84,000,000
9/24/97 5.58 50,000,000 50,004,370
9/30/97 5.85 25,000,000 25,000,000
Barclays Bank, PLC
9/8/97 5.58 80,000,000 80,000,000
9/22/97 5.52 80,000,000 80,000,000
1/26/98 5.80 25,000,000 24,994,032
Caisse Nationale de Credit Agricole
9/8/97 5.57 30,000,000 30,000,000
10/20/97 5.60 35,000,000 35,000,000
10/22/97 5.59 46,000,000 46,000,000
11/13/97 5.86 12,000,000 12,000,000
Canadian Imperial Bank of Commerce
9/22/97 5.53 18,000,000 18,000,000
8/28/98 5.97 60,000,000 59,965,960
Commerzbank, Germany
9/10/97 5.56 25,000,000 25,000,000
9/10/97 5.62 25,000,000 25,000,000
Deutsche Bank, Germany
9/22/97 5.56 94,000,000 94,000,000
10/28/97 5.70 9,000,000 8,998,216
4/10/98 6.25 25,000,000 24,992,783
8/10/98 5.91 25,000,000 24,986,521
8/11/98 5.90 55,000,000 54,975,206
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Hong Kong & Shanghai Banking Corp.
9/11/97 5.55% $ 15,000,000 $ 15,000,071
Landesbank Hessen - Thuringen
9/5/97 6.20 25,000,000 25,000,026
Midland Bank PLC
9/5/97 5.57 14,000,000 14,000,138
9/10/97 5.57 5,000,000 5,000,012
National Westminster Bank, PLC
6/23/98 6.00 60,000,000 59,958,748
8/10/98 6.00 8,675,000 8,663,706
Rabobank Nederland, N.V.
3/20/98 6.00 25,000,000 24,996,072
4/10/98 6.25 20,000,000 19,994,227
Royal Bank of Canada
3/3/98 5.82 25,000,000 24,997,601
8/7/98 5.90 27,000,000 26,992,782
8/13/98 6.00 10,000,000 9,995,017
Sanwa Bank, Ltd. Japan
9/25/97 5.75 29,000,000 29,000,191
10/2/97 5.65 23,000,000 23,000,000
10/3/97 5.70 18,000,000 18,001,176
Societe Generale, France
9/3/97 5.70 25,000,000 24,999,817
10/1/97 5.60 9,000,000 8,999,714
10/14/97 5.56 50,000,000 50,001,622
10/15/97 5.56 6,000,000 6,000,199
10/20/97 5.56 138,000,000 138,000,000
11/12/97 5.90 34,000,000 34,000,000
Sumitomo Bank, Ltd. Japan
9/2/97 5.75 19,000,000 19,000,000
Swiss Bank Corp.
9/2/97 5.58 50,000,000 50,000,000
9/8/97 5.57 35,000,000 35,000,000
12/22/97 5.99 50,000,000 50,000,000
12/30/97 6.04 30,000,000 30,000,000
1/20/98 5.70 90,000,000 90,000,000
2/27/98 5.88 12,000,000 12,000,000
8/28/98 5.97 30,000,000 29,985,817
Westdeutsche Landesbank
9/4/97 5.58 15,000,000 15,000,087
9/18/97 5.53 23,000,000 23,000,000
12/22/97 5.62 20,000,000 20,000,000
1,980,481,015
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.7%
Bank of Nova Scotia
4/1/98 6.20 30,000,000 29,990,027
National Westminster Bank, PLC
2/12/98 5.75 12,000,000 12,000,000
41,990,027
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
SAN FRANCISCO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.1%
Banque Nationale de Paris
11/17/97 5.61% $ 8,000,000 $ 8,000,293
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 0.4%
Bankers Trust Co.
10/10/97 5.63 16,000,000 16,000,151
11/20/97 5.60 9,000,000 9,000,754
25,000,905
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 7.1%
ABN-AMRO Bank
9/17/97 5.56 18,000,000 18,000,152
9/22/97 5.65 6,000,000 6,000,035
9/23/97 5.56 4,000,000 4,000,188
1/14/98 5.70 11,000,000 11,000,365
Abbey National, Treasury Services
3/4/98 5.87 27,000,000 27,000,000
Australia & New Zealand Banking
2/20/98 5.70 6,000,000 5,999,393
Banco Bilbao Vizcaya, S.A.
1/21/98 5.70 6,000,000 6,000,230
Bank of Nova Scotia
9/9/97 5.58 26,000,000 26,000,000
11/12/97 5.86 20,000,000 20,000,000
Banque Bruxelles Lambert SA
10/21/97 5.60 15,000,000 15,000,411
Banque Nationale de Paris
10/1/97 5.55 25,000,000 25,001,659
Barclays Bank, PLC
10/3/97 5.55 74,000,000 74,000,000
Bayerische Landesbank Girozentrale
9/30/97 5.60 21,000,000 21,000,855
12/31/97 5.75 10,000,000 10,000,297
Bayerische Vereinsbank A.G.
9/17/97 5.65 11,000,000 10,999,939
12/29/97 5.75 20,000,000 20,000,321
National Australia Bank
9/23/97 5.65 10,000,000 10,000,000
National Westminster Bank, PLC
10/1/97 5.53 22,000,000 21,999,485
Norddeutsche Landesbank
1/20/98 5.70 20,000,000 20,000,761
Royal Bank of Scotland, PLC
12/29/97 5.75 15,000,000 15,000,482
Sumitomo Bank, Ltd. Japan
10/1/97 5.75 26,000,000 26,000,428
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Toronto-Dominion Bank
9/22/97 5.64% $ 25,000,000 $ 25,000,000
Westdeutsche Landesbank
10/1/97 5.55 6,000,000 5,999,915
11/24/97 5.60 29,000,000 29,000,666
453,005,582
TOTAL CERTIFICATES OF DEPOSIT 2,640,460,649
COMMERCIAL PAPER - 35.1%
AC Acquisition Holding Co.
9/9/97 5.58 13,000,000 12,984,024
9/10/97 5.60 5,000,000 4,993,075
9/16/97 5.55 22,000,000 21,949,583
American Express Credit Corp.
9/8/97 5.57 15,000,000 14,983,900
9/30/97 5.54 19,000,000 18,915,819
Associates Corp. of North America
9/17/97 5.64 100,000,000 99,752,889
9/17/97 5.65 13,000,000 12,967,817
9/25/97 5.54 20,000,000 19,926,666
Bank of Nova Scotia
9/17/97 5.66 20,000,000 19,950,400
9/18/97 5.64 6,000,000 5,984,247
Bear Stearns Cos., Inc.
10/14/97 5.62 14,000,000 13,907,359
10/21/97 5.60 20,000,000 19,846,667
10/27/97 5.58 11,000,000 10,905,547
11/17/97 5.60 7,000,000 6,917,353
Berliner Handels-und Frankfurter Bank
9/23/97 5.66 7,000,000 6,976,130
BHF Finance (Delaware), Inc.
10/3/97 5.56 22,000,000 21,892,249
10/10/97 5.62 7,000,000 6,957,988
BMW US Capital Corp.
9/9/97 5.61 6,000,000 5,992,600
9/18/97 5.55 3,000,000 2,992,166
9/22/97 5.54 9,000,000 8,971,072
10/7/97 5.60 4,000,000 3,977,720
11/10/97 5.62 14,000,000 13,849,189
B.B.V. Finance (Delaware), Inc.
10/8/97 5.88 21,000,000 20,876,759
Caisse des Depots et Consignations
9/18/97 5.64 19,750,000 19,698,145
9/26/97 5.56 25,000,000 24,904,514
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
CIESCO, L.P.
9/12/97 5.57% $ 12,000,000 $ 11,979,760
CIT Group Holdings, Inc.
9/17/97 5.57 40,000,000 39,902,044
Citibank Credit Card Master Trust I (Dakota Certificate Program)
9/3/97 5.56 10,535,000 10,531,769
9/3/97 5.59 5,500,000 5,498,307
9/22/97 5.59 4,000,000 3,987,096
9/24/97 5.56 7,000,000 6,975,313
11/10/97 5.62 4,000,000 3,956,911
11/13/97 5.62 4,000,000 3,955,064
CoreStates Capital Corp. (a)
9/5/97 5.58 5,000,000 5,000,000
Cregem North America, Inc.
9/11/97 5.66 10,000,000 9,984,500
9/16/97 5.64 6,000,000 5,986,100
9/18/97 5.65 13,000,000 12,965,806
9/23/97 5.66 7,000,000 6,976,130
9/24/97 5.66 9,000,000 8,967,915
10/17/97 5.62 14,000,000 13,900,896
Eiger Capital Corp.
9/4/97 5.56 15,634,000 15,626,795
9/8/97 5.56 14,000,000 13,984,946
9/10/97 5.56 7,000,000 6,990,323
9/22/97 5.55 10,000,000 9,967,800
Enterprise Funding Corp.
9/2/97 5.57 8,000,000 7,998,769
9/5/97 5.60 16,000,000 15,990,133
9/12/97 5.58 3,000,000 2,994,930
9/18/97 5.60 9,366,000 9,341,498
9/19/97 5.57 11,000,000 10,969,640
10/15/97 5.59 3,000,000 2,979,650
Fina Oil and Chemical Company
9/8/97 5.64 2,000,000 1,997,830
9/17/97 5.57 4,000,000 3,990,151
Ford Motor Credit Corp.
10/7/97 5.54 100,000,000 99,450,000
10/7/97 5.55 75,000,000 74,587,500
10/20/97 5.58 60,000,000 59,550,833
11/5/97 5.87 75,000,000 74,228,125
General Electric Capital Corp.
9/19/97 5.54 100,000,000 99,725,000
9/22/97 5.54 35,000,000 34,887,708
9/22/97 5.80 38,000,000 37,874,980
9/23/97 5.80 65,000,000 64,775,967
10/7/97 5.55 35,000,000 34,807,500
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
General Motors Acceptance Corp.
9/10/97 5.61% $ 34,000,000 $ 33,952,400
9/15/97 5.55 27,000,000 26,941,935
9/22/97 5.56 13,000,000 12,958,140
10/14/97 6.00 51,000,000 50,645,465
10/16/97 6.01 8,000,000 7,941,750
10/20/97 6.03 18,000,000 17,856,798
10/29/97 6.02 11,000,000 10,896,414
11/3/97 6.02 17,000,000 16,826,409
11/10/97 6.02 34,000,000 33,613,911
11/12/97 6.02 12,000,000 11,859,960
Generale Banque
9/23/97 5.65 3,000,000 2,989,788
Goldman Sachs Group, L.P. (The)
9/17/97 5.55 18,000,000 17,955,840
11/12/97 5.87 40,000,000 39,544,000
Grand Capital Corp.
1/7/98 5.70 8,000,000 7,842,133
GTE Corp.
9/2/97 5.57 11,000,000 10,998,304
Household Finance Corp.
9/8/97 5.59 6,000,000 5,993,537
Merrill Lynch & Co., Inc.
9/23/97 5.54 25,000,000 24,915,819
11/4/97 5.60 50,000,000 49,509,333
1/14/98 5.71 13,000,000 12,729,438
Morgan Stanley Dean Witter Discover, Inc.
9/23/97 5.58 (a) 95,000,000 95,000,000
10/6/97 5.56 20,000,000 19,892,861
10/7/97 5.56 50,000,000 49,724,500
10/22/97 5.57 27,000,000 26,789,243
Nationwide Building Society
9/5/97 5.80 30,000,000 29,981,183
10/8/97 5.62 13,365,000 13,288,901
11/17/97 5.62 12,000,000 11,857,807
New Center Asset Trust
11/7/97 5.89 5,000,000 4,946,772
Norfolk Southern Corp.
9/8/97 5.72 2,000,000 1,997,783
9/18/97 5.73 6,500,000 6,482,504
10/1/97 5.75 5,000,000 4,976,167
10/2/97 5.75 16,000,000 15,921,191
PHH Corp.
9/9/97 5.60 17,000,000 16,979,071
10/9/97 5.62 7,000,000 6,959,066
10/31/97 5.61 7,000,000 6,935,483
Preferred Receivables Funding Corp.
9/18/97 5.56 3,000,000 2,992,180
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Sears Roebuck Acceptance Corp.
9/17/97 5.56% $ 13,000,000 $ 12,968,107
Textron, Inc.
9/15/97 5.71 4,000,000 3,991,164
9/18/97 5.73 10,650,000 10,621,333
9/22/97 5.68 10,000,000 9,967,042
Toronto Dominion Holdings USA, Inc.
12/23/97 5.75 15,000,000 14,736,804
Triple A One Funding Corp.
9/3/97 5.59 2,000,000 1,999,384
9/8/97 5.55 20,000,000 19,978,533
9/8/97 5.56 8,500,000 8,490,860
9/11/97 5.68 8,000,000 7,987,556
9/18/97 5.58 3,000,000 2,992,152
UBS Finance, Inc.
9/2/97 5.63 142,000,000 141,977,793
Unifunding, Inc.
9/10/97 5.68 12,000,000 11,983,200
9/15/97 5.66 7,000,000 6,984,810
10/1/97 5.61 5,000,000 4,976,917
10/20/97 5.60 20,000,000 19,849,733
TOTAL COMMERCIAL PAPER 2,244,563,041
FEDERAL AGENCIES - 2.4%
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 0.4%
9/4/97 5.71 22,000,000 21,995,069
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 2.0%
9/9/97 5.71 80,000,000 79,981,122
9/13/97 5.71 50,000,000 49,981,202
129,962,324
TOTAL FEDERAL AGENCIES 151,957,393
BANK NOTES - 4.3%
Bank of New York, NY
3/3/98 5.85 30,000,000 29,992,802
3/17/98 6.00 10,000,000 9,997,937
Bank One, Columbus, NA
9/2/97 5.73 46,000,000 45,975,343
Comerica, Inc.
9/17/97 5.61 (a) 15,000,000 14,990,964
Comerica Bank - Detroit
3/27/98 6.20 25,000,000 24,972,951
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Huntington National Bank
9/30/97 5.50% $ 10,000,000 $ 10,001,677
Key Bank National Association
9/2/97 5.61 19,000,000 18,987,222
9/24/97 5.58 26,000,000 25,986,445
9/29/97 5.58 25,000,000 24,983,159
National City Bank - Pennsylvania
9/2/97 5.59 18,000,000 17,988,050
Northern Trust Bank
9/2/97 5.58 (a) 14,000,000 13,992,087
PNC Bank
9/2/97 5.66 (a) 14,000,000 13,989,538
9/11/97 5.59 (a) 25,000,000 24,995,654
TOTAL BANK NOTES 276,853,829
MASTER NOTES (A) - 3.1%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Goldman Sachs Group, L.P. (The)
9/16/97 (c) 5.81 58,000,000 58,000,000
11/7/97 (c) 5.72 12,000,000 12,000,000
J.P. Morgan Securities
9/2/97 5.75 84,000,000 84,000,000
Norwest Corp.
9/2/97 5.66 36,000,000 36,000,000
Suntrust Banks Inc.
9/2/97 5.61 10,000,000 10,000,000
TOTAL MASTER NOTES 200,000,000
MEDIUM-TERM NOTES (A) - 3.2%
BankBoston NA
9/11/97 5.66 15,000,000 15,000,000
Beneficial Corp.
9/5/97 5.61 12,000,000 11,996,740
9/25/97 5.72 10,000,000 9,993,578
First Bank NA - Minnesota
9/17/97 5.59 10,000,000 9,993,268
General Motors Acceptance Corp.
9/2/97 5.81 11,000,000 10,999,003
11/1/97 5.71 26,000,000 26,000,000
Merrill Lynch & Co., Inc.
9/4/97 5.61 11,000,000 10,998,546
Norwest Corp.
10/22/97 5.77 31,000,000 31,000,000
MEDIUM-TERM NOTES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Pacific Mutual Life Insurance Co. (b)
9/9/97 5.87% $ 10,000,000 $ 10,000,000
12/9/97 (d) 5.76 25,000,000 25,000,000
PNC Bank
9/27/97 5.59 18,000,000 17,992,294
Transamerica Life Insurance and Annuity Co.
9/2/97 (c) 5.66 10,000,000 10,000,000
9/16/97 5.81 16,000,000 16,000,000
TOTAL MEDIUM-TERM NOTES 204,973,429
SHORT-TERM NOTES (A) - 3.9%
Capital One Funding Corp. (1994-C)
9/8/97 5.56 8,745,000 8,745,000
Capital One Funding Corp. (1994-E)
9/8/97 5.56 8,477,000 8,477,000
Capital One Funding Corp. (1995-D)
9/8/97 5.56 11,585,000 11,585,000
Capital One Funding Corp. (1995-E)
9/8/97 5.56 10,075,000 10,075,000
CSA Funding - C
9/8/97 5.60 5,000,000 5,000,000
Liquid Asset Backed Securities Trust (1996-1)
9/15/97 (b) 5.68 28,000,000 28,000,000
Liquid Asset Backed Securities Trust (1996-2)
9/2/97 (b) 5.66 35,000,000 35,000,000
SMM Trust (1996-P)
9/16/97 (b) 5.66 35,000,000 35,000,000
SMM Trust (1997-I)
9/29/97 (b) 5.63 31,000,000 31,000,000
SMM Trust (1997-V)
9/26/97 (b) 5.63 39,000,000 39,000,000
SMM Trust (1997-W)
9/16/97 (b) 5.64 35,000,000 35,000,000
TOTAL SHORT-TERM NOTES 246,882,000
TIME DEPOSITS - 4.8%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Bank of Tokyo - Mitsubishi Ltd.
9/2/97 5.63% $ 6,000,000 $ 6,000,000
9/8/97 5.63 18,000,000 18,000,000
9/22/97 5.61 14,000,000 14,000,000
10/2/97 5.60 23,000,000 23,000,000
10/2/97 5.67 11,000,000 11,000,000
First National Bank of Chicago
9/2/97 5.63 150,000,000 150,000,000
Sumitomo Bank, Ltd. Japan
9/3/97 5.69 11,000,000 11,000,000
9/9/97 5.66 22,000,000 22,000,000
9/19/97 5.65 14,000,000 14,000,000
9/23/97 5.63 10,000,000 10,000,000
9/25/97 5.63 17,000,000 17,000,000
10/3/97 5.69 11,000,000 11,000,000
TOTAL TIME DEPOSITS 307,000,000
REPURCHASE AGREEMENTS - 1.8%
MATURITY
AMOUNT
In a joint trading account (Note 2):
(U.S. Treasury Obligations)
dated 8/27/97 due 9/2/97
At 5.65% $ 64,060,267 64,000,000
(U.S. Government Obligations)
dated 8/29/97 due 9/2/97
At 5.58% 53,326,044 53,293,000
TOTAL REPURCHASE AGREEMENTS 117,293,000
TOTAL INVESTMENTS - 100% $ 6,389,983,341
Total Cost for Income Tax Purposes $ 6,389,983,341
LEGEND
3. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
4. 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 $ 238,000,000 or
approximately 3.8% of net assets.
5. 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 COST
SECURITY DATE (000S)
Goldman Sachs Group,
L.P. (The) 6/11/97 $ 58,000,000
Goldman Sachs Group,
L.P. (The) 8/5/97 $ 12,000,000
Transamerica Life Insurance
and Annuity Co. 12/11/96 $ 10,000,000
6. Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
INCOME TAX INFORMATION
At August 31, 1997, the fund had a capital loss carryforward of
approximately $394,000 of which $278,000, $42,000, and $74,000 will
expire on August 31, 2002, 2004, and 2005, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AUGUST 31, 1997
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE AGREEMENTS OF $117,293,000) - $ 6,389,983,341
SEE ACCOMPANYING SCHEDULE
INTEREST RECEIVABLE 38,461,038
TOTAL ASSETS 6,428,444,379
LIABILITIES
PAYABLE TO CUSTODIAN BANK $ 67,233
PAYABLE FOR INVESTMENTS PURCHASED 164,040,038
REGULAR DELIVERY
DELAYED DELIVERY 25,000,000
SHARE TRANSACTIONS IN PROCESS 10,167,762
DISTRIBUTIONS PAYABLE 53,760
ACCRUED MANAGEMENT FEE 2,237,046
OTHER PAYABLES AND ACCRUED EXPENSES 37,648
TOTAL LIABILITIES 201,603,487
NET ASSETS $ 6,226,840,892
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 6,227,234,682
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (393,790)
NET ASSETS, FOR 6,227,162,672 SHARES OUTSTANDING $ 6,226,840,892
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE $1.00
($6,226,840,892 (DIVIDED BY) 6,227,162,672 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1997
INTEREST INCOME $ 333,032,817
EXPENSES
MANAGEMENT FEE $ 24,915,789
NON-INTERESTED TRUSTEES' COMPENSATION 39,323
TOTAL EXPENSES BEFORE REDUCTIONS 24,955,112
EXPENSE REDUCTIONS (1,740,959) 23,214,153
NET INTEREST INCOME 309,818,664
NET REALIZED GAIN (LOSS) ON INVESTMENTS (73,225)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 309,745,439
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1997 1996
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 309,818,664 $ 256,164,758
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (73,225) (42,074)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 309,745,439 256,122,684
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (309,818,664) (256,164,758)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 7,484,258,226 5,429,621,106
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 309,818,664 252,826,219
COST OF SHARES REDEEMED (6,894,419,990) (4,704,989,059)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS 899,656,900 977,458,266
TOTAL INCREASE (DECREASE) IN NET ASSETS 899,583,675 977,416,192
NET ASSETS
BEGINNING OF PERIOD 5,327,257,217 4,349,841,025
END OF PERIOD $ 6,226,840,892 $ 5,327,257,217
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED AUGUST 31,
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
1997 1996 1995 1994 1993
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
INCOME FROM INVESTMENT OPERATIONS .052 .053 .054 .034 .030
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.052) (.053) (.054) (.034) (.030)
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 5.37% 5.40% 5.57% 3.41% 3.09%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000 OMITTED) $ 6,226,841 $ 5,327,257 $ 4,349,841 $ 2,799,925 $ 1,705,966
RATIO OF EXPENSES TO AVERAGE NET ASSETS .42% .37% .42% .42% .42%
B
RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER .39% C .34% .42% .42% .42%
EXPENSE REDUCTIONS C
RATIO OF NET INTEREST INCOME TO AVERAGE NET ASSETS 5.21% 5.31% 5.49% 3.44% 3.05%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 4 OF NOTES TO
FINANCIAL STATEMENTS).
B 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.
C 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, 1997
6. 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.
7. 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 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.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased 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 when-issued security. With respect to purchase
commitments, the fund identifies securities as segregated in its
custodial records with a value at least equal to the amount of the
commitment. The payables and receivables associated with the purchases
and sales of when-issued securities having the same settlement date
and broker are offset. When-issued securities that have been purchased
from and sold to different brokers are reflected as both payables and
receivables in the statement of assets and liabilities under the
caption "Delayed delivery." Losses may arise due to changes in the
market value of the underlying securities, if the counterparty does
not perform under the contract, or if the issuer does not issue the
securities due to political, economic, or other factors.
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
2. OPERATING POLICIES - CONTINUED
RESTRICTED SECURITIES - CONTINUED
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 $80,000,000
or 1.3% of net assets.
8. 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.
9. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the
fund's custodian and transfer agent whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of
the fund's expenses. During the period, the fund's expenses were
reduced by $1,740,959 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,
1997, and 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
five years in the period then ended. 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, 1997 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: Retirement Money
Market Portfolio as of August 31, 1997, 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 five years in the period then ended, in conformity with
generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
October 10, 1997
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Fred L. Henning, Jr., VICE PRESIDENT
Boyce I. Greer, VICE PRESIDENT
Robert K. Duby, VICE PRESIDENT
Arthur S. Loring, SECRETARY
Richard A. Silver, 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
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
