(registered trademark)
FIDELITY
MONEY MARKET
TRUST:
RETIREMENT
GOVERNMENT
MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 28, 1997
RGM-SANN-0497
29406
CONTENTS
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SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
INVESTMENTS 3 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 5 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 9 Notes to the financial statements.
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THE FUND SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT
WITH THE PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING IN MONEY MARKET
SECURITIES ISSUED OR GUARANTEED AS TO PRINCIPAL AND INTEREST BY THE U.S.
GOVERNMENT, OR BY ANY OF ITS AGENCIES OR INSTRUMENTALITIES.
INVESTMENTS IN THE FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE
FUND WILL MAINTAIN A STABLE $1.00 SHARE PRICE.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION.
SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL THE APPROPRIATE NUMBER LISTED BELOW. READ
THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
RETIREMENT PLAN LEVEL ACCOUNTS
CORPORATE CLIENTS 1-800-962-1375
"NOT FOR PROFIT" CLIENTS 1-800-343-0860
FINANCIAL AND OTHER INSTITUTIONS
NATIONWIDE 1-800-843-3001
INVESTMENTS FEBRUARY 28, 1997 (UNAUDITED)
Showing Percentage of Total Value of Investments in Securities
FEDERAL AGENCIES - 44.7%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS (A) - 2.3%
3/3/97 5.59% $ 60,000,000 $ 59,998,732
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 5.2%
3/2/97 5.35 93,000,000 92,957,304
3/28/97 5.30 46,000,000 45,982,317
138,939,621
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 1.0%
5/29/97 5.32 28,000,000 27,636,929
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 0.8%
3/7/97 5.31 22,000,000 21,980,878
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 22.0%
3/3/97 5.27 119,000,000 118,991,825
3/3/97 5.34 65,000,000 65,271,518
3/3/97 5.40 31,000,000 31,000,000
3/3/97 5.42 121,000,000 120,944,546
3/4/97 5.33 32,000,000 31,984,255
3/4/97 5.35 61,000,000 60,963,743
3/9/97 5.40 49,000,000 48,966,947
3/13/97 5.43 25,000,000 24,984,511
3/20/97 5.49 30,000,000 29,998,345
5/1/97 5.46 58,000,000 57,984,388
591,090,078
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 12.1%
4/21/97 5.40 33,000,000 32,754,563
4/28/97 5.39 47,000,000 46,602,459
5/21/97 5.31 30,000,000 29,645,625
5/29/97 5.32 18,000,000 17,766,598
6/13/97 5.35 57,000,000 56,142,910
6/17/97 5.37 25,000,000 24,605,875
7/24/97 5.41 43,000,000 42,087,266
7/28/97 5.35 15,705,000 15,366,019
7/28/97 5.41 50,000,000 48,909,403
8/25/97 5.40 11,000,000 10,715,522
324,596,240
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 1.3%
3/3/97 5.39 35,000,000 35,000,000
TOTAL FEDERAL AGENCIES 1,199,242,478
U.S. TREASURY OBLIGATIONS - 13.0%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS - 10.6%
4/3/97 5.54% $ 59,000,000 $ 58,715,788
4/3/97 5.55 53,000,000 52,744,452
8/21/97 5.63 13,000,000 12,667,024
8/21/97 5.66 13,000,000 12,665,774
8/21/97 5.67 47,500,000 46,276,405
9/18/97 5.68 26,000,000 25,219,003
9/18/97 5.70 16,000,000 15,518,493
9/18/97 5.71 32,000,000 31,034,754
3/5/98 5.67 15,000,000 14,186,688
3/5/98 5.68 15,000,000 14,185,550
283,213,931
U.S. TREASURY NOTES - 2.4%
11/15/97 5.46 65,000,000 65,755,703
TOTAL U.S. TREASURY
OBLIGATIONS 348,969,634
MEDIUM-TERM NOTES - 0.2%
Export-Import Bank, U.S. (as guarantor for K.A. Leasing, Ltd.) (b)
3/15/97 5.44 (a) 4,842,058 4,842,058
REPURCHASE AGREEMENTS - 42.1%
MATURITY
AMOUNT
In a joint trading account (Note 3):
(U.S. Government Obligations)
dated 2/20/97 due 3/6/97:
At 5.31% $ 91,187,915 91,000,000
(U.S. Government Obligations)
dated 2/21/97 due 3/7/97:
At 5.30% 69,142,217 69,000,000
(U.S. Government Obligations)
dated 2/28/97 due 3/3/97:
At 5.43% 969,943,927 969,505,000
TOTAL REPURCHASE AGREEMENTS 1,129,505,000
TOTAL INVESTMENTS - 100% $2,682,559,170
Total Cost for Income Tax Purposes $ 2,682,559,170
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. 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 $ 4,842,058
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
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FEBRUARY 28, 1997 (UNAUDITED)
3.ASSETS
Investment in securities, at value (including repurchase agreements of $1,129,505,000) - $ 2,682,559,170
See accompanying schedule
Cash 1,654,479
Interest receivable 9,070,314
4.TOTAL ASSETS 2,693,283,963
5.LIABILITIES
Payable for investments purchased $ 28,372,238
Distributions payable 322,020
Accrued management fee 864,515
Other payables and accrued expenses 19,483
6.TOTAL LIABILITIES 29,578,256
7.NET ASSETS $ 2,663,705,707
Net Assets consist of:
Paid in capital $ 2,663,938,496
Accumulated net realized gain (loss) on investments (232,789)
8.NET ASSETS, for 2,663,938,496 shares outstanding $ 2,663,705,707
9.NET ASSET VALUE, offering price and redemption price per share $1.00
($2,663,705,707 (divided by) 2,663,938,496 shares)
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STATEMENT OF OPERATIONS
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SIX MONTHS ENDED FEBRUARY 28, 1997 (UNAUDITED)
10.11.INTEREST INCOME $ 71,512,231
12.EXPENSES
Management fee $ 5,475,314
Non-interested trustees' compensation 24,983
Total expenses before reductions 5,500,297
Expense reductions (404,765) 5,095,532
13.NET INTEREST INCOME 66,416,699
14.15.NET REALIZED GAIN (LOSS) ON INVESTMENTS 5,533
16.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 66,422,232
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STATEMENT OF CHANGES IN NET ASSETS
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SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, AUGUST 31,
1997
(UNAUDITED) 1996
17.INCREASE (DECREASE) IN NET ASSETS
Operations $ 66,416,699 $ 126,313,882
Net interest income
Net realized gain (loss) 5,533 (1,541)
18.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 66,422,232 126,312,341
Distributions to shareholders from net interest income (66,416,699) (126,313,882)
Share transactions at net asset value of $1.00 per share 1,257,389,949 2,194,070,961
Proceeds from sales of shares
Reinvestment of distributions from net interest income 66,260,300 124,852,098
Cost of shares redeemed (1,182,557,006) (2,066,690,779)
19. NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS 141,093,243 252,232,280
20.TOTAL INCREASE (DECREASE) IN NET ASSETS 141,098,776 252,230,739
21.NET ASSETS
Beginning of period 2,522,606,931 2,270,376,192
End of period $ 2,663,705,707 $ 2,522,606,931
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FINANCIAL HIGHLIGHTS
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SIX MONTHS YEARS ENDED AUGUST 31, TEN MONTHS
ENDED ENDED
FEBRUARY 28, 1997 AUGUST 31,
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(UNAUDITED) 1996 1995 1994 1993 1992
22.SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .025 .052 .053 .032 .029 .034
Net interest income
Less Distributions
From net interest income (.025) (.052) (.053) (.032) (.029) (.034)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
23.TOTAL RETURN B, C 2.57% 5.36% 5.46% 3.27% 2.95% 3.47%
24.RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 2,663,706 $ 2,522,607 $ 2,270,376 $ 1,655,404 $ 1,393,583 $ 1,236,529
Ratio of expenses to average net assets .42% A .37% .42% .42% .42% .42% A
E
Ratio of expenses to average net assets .39% A, .34% .42% .42% .42% .42% A
after expense reductions D D
Ratio of net interest income to average 5.07% A 5.27% 5.38% 3.26% 2.90% 4.08% A
net assets
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A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C 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).
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).
E 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1997 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Retirement Government Money Market Portfolio (the fund) is a fund of
Fidelity Money Market Trust (the trust) and is authorized to issue an
unlimited number of shares. The trust is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Delaware business trust. The financial
statements have been prepared in conformity with generally accepted
accounting principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the 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 $4,842,058 or
0.2% 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 $91,187,915 at 5.31%, $69,142,217 at 5.30%, and
$969,943,927 at 5.43%, respectively. The investments in repurchase
agreements through the joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
DATED FEBRUARY 20, 1997, DUE MARCH 6, 1997 AT 5.31%
Number of dealers or banks 2
Maximum amount with one dealer or bank 66.7%
Aggregate principal amount of agreements $600,000,000
Aggregate maturity amount of agreements $601,239,000
Aggregate market value of transferred assets $610,868,487
Coupon rates of transferred assets 0% to 7.92%
Maturity dates of transferred assets 1/1/00 to 11/1/35
DATED FEBRUARY 21, 1997, DUE MARCH 7, 1997 AT 5.30%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $325,000,000
Aggregate maturity amount of agreements $325,669,861
Aggregate market value of transferred assets $328,785,882
Coupon rates of transferred assets 0% to 7.92%
Maturity dates of transferred assets 1/1/00 to 11/1/35
DATED FEBRUARY 28, 1997, DUE MARCH 3, 1997 AT 5.43%
Number of dealers or banks 5
Maximum amount with one dealer or bank 38.5%
Aggregate principal amount of agreements $1,787,784,000
Aggregate maturity amount of agreements $1,788,593,389
Aggregate market value of transferred assets $1,834,723,804
Coupon rates of transferred assets 0% to 13.50%
Maturity dates of transferred assets 10/1/97 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.
5. EXPENSE REDUCTIONS.
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 $404,765 under these
arrangements.
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 *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
* 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
(registered trademark)
FIDELITY
MONEY MARKET
TRUST:
RETIREMENT
MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 28, 1997
RGM-SANN-0497
29605
CONTENTS
CHECK PAGE NUMBERS !!!
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SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
INVESTMENTS 3 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 8 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 12 Notes to the financial statements.
</TABLE>
THE FUND SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT
WITH THE PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING IN
HIGH-QUALITY, SHORT-TERM MONEY MARKET SECURITIES.
INVESTMENTS IN THE FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE
FUND WILL MAINTAIN A STABLE $1.00 SHARE PRICE.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION.
SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL THE APPROPRIATE NUMBER LISTED BELOW. READ
THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
RETIREMENT PLAN LEVEL ACCOUNTS
CORPORATE CLIENTS 1-800-962-1375
"NOT FOR PROFIT" CLIENTS 1-800-343-0860
FINANCIAL AND OTHER INSTITUTIONS
NATIONWIDE 1-800-843-3001
INVESTMENTS FEBRUARY 28, 1997 (UNAUDITED)
Showing Percentage of Total Value of Investments in Securities
BANKERS' ACCEPTANCES - 0.0%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
DOMESTIC BANKERS' ACCEPTANCES - 0.0%
Chase Manhattan Bank
6/25/97 5.61% $ 2,560,035 $ 2,515,078
CERTIFICATES OF DEPOSIT - 39.2%
DOMESTIC CERTIFICATES OF DEPOSIT - 0.7%
Chase Manhattan Bank (USA)
3/10/97 5.77 25,000,000 25,000,000
7/28/97 5.55 21,000,000 21,000,000
46,000,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 26.7%
ABN-AMRO Bank
3/10/97 5.40 25,000,000 25,000,000
Australia & New Zealand Bank
3/31/97 5.40 50,000,000 50,000,207
Bank of Montreal
6/24/97 5.38 50,000,000 50,000,000
Bank of Nova Scotia
3/17/97 5.47 35,000,000 35,000,000
6/10/97 6.02 5,000,000 4,997,227
Bank of Tokyo - Mitsubishi Ltd.
3/3/97 5.50 38,000,000 38,000,000
3/20/97 5.50 10,000,000 10,000,598
5/5/97 5.60 16,000,000 16,000,000
5/7/97 5.48 8,000,000 8,001,175
5/27/97 5.48 29,000,000 29,000,000
5/30/97 5.48 9,000,000 9,000,000
6/3/97 5.53 32,000,000 32,000,000
6/4/97 5.53 6,000,000 6,000,000
Banque Nationale de Paris
3/3/97 5.38 15,000,000 15,000,000
3/3/97 5.48 100,000,000 99,999,361
3/10/97 5.77 25,000,000 25,000,000
3/26/97 5.40 25,000,000 25,000,000
4/7/97 5.37 22,000,000 22,000,000
Barclays Bank PLC
1/26/98 5.80 25,000,000 24,986,560
Bayerische Hypotheken-und Weschel
5/12/97 5.37 15,000,000 15,000,273
Bayerische Landesbank Girozentrale
4/7/97 5.40 35,000,000 35,000,000
4/22/97 5.58 (a) 32,000,000 32,000,000
Caisse Nationale de Credit Agricole
3/24/97 5.62 75,000,000 75,000,000
4/7/97 5.40 25,000,000 25,000,000
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Canadian Imperial Bank of Commerce
3/14/97 5.30% $ 75,000,000 $ 75,000,270
Commerzbank, Germany
3/5/97 5.38 13,000,000 13,000,000
Den Danske Bank A/S
4/23/97 5.44 10,000,000 10,000,000
7/28/97 5.52 10,000,000 10,001,980
Deutsche Bank, Germany
5/28/97 5.34 75,000,000 75,000,000
Dresdner Bank, A.G., Germany
6/18/97 5.37 45,000,000 45,000,000
Landesbank Hessen - Thuringen
9/5/97 6.20 25,000,000 25,001,228
National Westminster Bank PLC
3/10/97 5.43 30,000,000 30,000,000
5/1/97 5.42 13,000,000 13,000,359
8/6/97 5.50 30,000,000 30,000,000
Rabobank Nederland, N.V.
6/16/97 5.50 20,000,000 20,000,000
Royal Bank of Canada
3/3/98 5.82 25,000,000 24,995,176
Sanwa Bank Ltd.
3/27/97 5.71 11,000,000 11,000,000
4/14/97 5.53 15,000,000 14,999,734
4/18/97 5.50 33,000,000 33,000,000
5/21/97 5.50 5,000,000 5,000,442
5/27/97 5.50 11,000,000 11,000,262
Societe Generale, France
3/21/97 5.40 26,000,000 26,000,316
3/24/97 5.38 50,000,000 50,000,000
6/10/97 5.53 11,000,000 11,010,534
7/25/97 5.55 40,000,000 40,000,000
7/28/97 5.55 15,000,000 15,000,000
Sumitomo Bank Ltd.
3/6/97 5.57 14,000,000 14,000,000
4/1/97 5.51 20,000,000 20,000,000
4/3/97 5.60 15,000,000 15,000,000
4/8/97 5.58 10,000,000 10,000,000
5/19/97 5.52 19,000,000 19,000,000
5/19/97 5.54 6,000,000 6,000,000
5/27/97 5.50 13,000,000 13,000,000
5/27/97 5.51 6,000,000 6,000,000
5/30/97 5.52 6,000,000 6,000,000
Swiss Bank Corp.
4/23/97 5.41 50,000,000 50,000,000
5/19/97 5.40 15,000,000 15,000,000
7/16/97 5.40 39,000,000 39,000,000
8/4/97 5.50 25,000,000 25,000,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Westdeutsche Landesbank
3/10/97 5.40% $ 10,000,000 $ 10,000,000
4/9/97 5.45 15,000,000 15,000,000
4/21/97 5.50 10,000,000 10,000,000
Westpac Banking Corp.
3/19/97 5.48 35,000,000 35,000,000
Westpac Capital Corp.
3/31/97 5.48 15,000,000 15,000,000
1,617,995,702
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 11.8%
ABN-AMRO Bank
3/17/97 5.37 15,000,000 15,000,264
7/24/97 5.45 10,000,000 10,000,688
Abbey National, Treasury Services
3/17/97 5.43 30,000,000 30,000,000
4/24/97 5.42 25,000,000 24,999,910
8/20/97 5.44 75,000,000 75,000,000
3/4/98 5.87 27,000,000 27,000,000
Banco Bilbao Vizcaya, S.A.
4/30/97 5.43 10,000,000 10,000,164
5/19/97 5.39 10,000,000 10,000,216
Bank of Nova Scotia
3/6/97 5.40 25,000,000 25,000,000
Bank of Tokyo - Mitsubishi Ltd.
3/3/97 5.48 14,000,000 14,000,007
Banque Nationale de Paris
6/30/97 5.44 15,000,000 15,001,403
Bayerische Hypotheken-und Weschel
4/7/97 5.37 50,000,000 50,000,510
Bayerische Landesbank Girozentrale
7/29/97 5.51 28,000,000 28,005,580
Bayerische Vereinsbank A.G.
3/3/97 5.38 30,000,000 30,000,012
3/10/97 5.80 16,000,000 16,000,000
3/11/97 5.42 5,000,000 5,000,014
8/26/97 5.44 9,000,000 8,999,965
Berliner Handels-und Frankfurter Bank
6/4/97 5.47 25,000,000 25,000,630
Canadian Imperial Bank of Commerce
3/19/97 5.45 15,000,000 15,000,000
Commerzbank, Germany
6/23/97 5.51 15,000,000 15,000,462
Den Danske Bank A/S
5/20/97 5.35 8,000,000 8,000,059
8/18/97 5.43 17,000,000 17,003,062
National Westminster Bank PLC
4/22/97 5.41 10,000,000 10,000,071
5/1/97 5.42 5,000,000 5,000,227
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Rabobank Nederland, N.V.
4/2/97 5.37% $ 38,500,000 $ 38,500,094
Sanwa Bank Ltd.
3/19/97 5.45 5,000,000 5,000,442
4/11/97 5.54 17,000,000 17,000,384
Societe Generale, France
7/18/97 5.55 40,000,000 40,000,215
Toronto-Dominion Bank
3/5/97 5.38 25,000,000 25,000,000
6/19/97 5.50 50,000,000 50,000,000
Westdeutsche Landesbank
4/7/97 5.40 50,000,000 50,000,507
714,514,886
TOTAL CERTIFICATES OF DEPOSIT 2,378,510,588
COMMERCIAL PAPER - 29.0%
ABN-AMRO North America Finance, Inc.
3/6/97 5.47 6,200,000 6,195,342
5/27/97 5.35 15,000,000 14,808,600
AVCO Financial Services
3/5/97 5.38 10,000,000 9,994,112
Abbey National, North America
8/25/97 5.44 50,000,000 48,698,313
Abbey National, Treasury Services
3/10/97 5.69 14,433,000 14,413,047
Associates Corp. of North America
3/25/97 5.49 27,000,000 26,902,620
BHF Finance (Delaware), Inc.
4/30/97 5.42 5,000,000 4,955,417
BMW US Capital Corp.
4/24/97 5.34 20,000,000 19,841,300
Bear Stearns Cos., Inc.
3/19/97 5.47 35,000,000 34,905,500
3/24/97 5.49 10,000,000 9,965,372
5/28/97 5.35 20,000,000 19,741,866
Beneficial Corp.
3/5/97 5.51 15,000,000 14,990,900
3/17/97 5.48 12,000,000 11,971,146
3/18/97 5.46 50,000,000 49,872,736
CIESCO, L.P.
3/3/97 5.34 23,000,000 22,993,228
3/4/97 5.34 30,000,000 29,986,750
CIT Group Holdings, Inc.
3/17/97 5.48 20,000,000 19,951,911
3/18/97 5.48 20,000,000 19,948,952
Caisse d'Amortissement de la Dette Sociale
3/10/97 5.82 50,000,000 49,929,374
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Chrysler Financial Corp.
3/11/97 5.48% $ 10,000,000 $ 9,984,889
3/12/97 5.48 3,000,000 2,995,013
3/12/97 5.49 10,000,000 9,983,347
3/19/97 5.46 6,000,000 5,983,740
4/14/97 5.48 6,000,000 5,960,217
4/21/97 5.45 17,000,000 16,869,950
4/29/97 5.45 5,000,000 4,955,750
Citibank Credit Card Master Trust I (Dakota Certificate Program)
3/12/97 5.47 10,000,000 9,983,500
3/13/97 5.52 2,000,000 1,996,366
4/28/97 5.34 5,640,000 5,591,931
5/14/97 5.39 2,807,000 2,776,304
5/19/97 5.39 5,000,000 4,941,628
5/30/97 5.44 7,000,000 6,906,025
Commonwealth Bank of Australia
3/5/97 5.38 10,000,000 9,994,100
CoreStates Capital Corp. (a)
3/4/97 5.44 15,000,000 15,000,000
3/7/97 5.40 5,000,000 5,000,000
Cregem North America, Inc.
5/9/97 5.43 25,000,000 24,743,645
6/27/97 5.39 4,000,000 3,930,642
Den Danske Corp., Inc.
4/15/97 5.43 15,000,000 14,899,688
Eiger Capital Corp.
3/19/97 5.40 40,000,000 39,893,000
Enterprise Funding Corp.
4/7/97 5.41 5,226,000 5,197,265
4/14/97 5.35 7,877,000 7,825,975
5/2/97 5.44 3,000,000 2,972,255
Ford Credit Europe PLC
4/28/97 5.36 5,000,000 4,957,306
Ford Motor Credit Corp.
3/10/97 5.38 70,000,000 69,907,250
3/24/97 5.66 25,000,000 24,912,153
4/23/97 5.37 70,000,000 69,452,775
7/28/97 5.51 50,000,000 48,890,778
GTE Corp.
3/10/97 5.36 5,000,000 4,993,325
3/20/97 5.35 5,000,000 4,985,948
General Electric Capital Corp.
3/6/97 5.53 5,000,000 4,996,202
3/12/97 5.76 30,000,000 29,948,667
3/18/97 5.39 50,000,000 49,875,098
5/28/97 5.45 25,000,000 24,673,055
7/29/97 5.52 25,000,000 24,440,625
General Electric Co.
3/3/97 5.37 15,000,000 14,995,583
5/27/97 5.35 50,000,000 49,363,208
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
General Motors Acceptance Corp.
3/3/97 5.45% $ 15,000,000 $ 14,995,525
3/31/97 5.70 15,000,000 14,930,750
4/14/97 5.63 22,000,000 21,852,783
4/15/97 5.63 10,000,000 9,931,562
4/28/97 5.47 60,000,000 59,478,000
5/7/97 5.51 27,000,000 26,730,660
6/30/97 5.62 32,000,000 31,412,208
8/27/97 5.50 21,000,000 20,441,371
Generale Bank
3/14/97 5.69 20,000,000 19,960,062
Goldman Sachs Group, L.P. (The)
4/29/97 5.50 10,000,000 9,912,320
5/12/97 5.45 37,000,000 36,607,800
IBM Credit Corp.
3/12/97 5.38 12,000,000 11,980,567
Merrill Lynch & Co., Inc.
3/11/97 5.76 15,000,000 14,976,666
3/12/97 5.68 9,000,000 8,984,807
6/11/97 5.42 10,000,000 9,849,266
7/28/97 5.54 20,000,000 19,553,828
Morgan Stanley Group, Inc.
4/15/97 5.40 40,000,000 39,733,000
5/14/97 5.38 8,400,000 8,308,314
5/15/97 5.42 25,000,000 24,721,875
Morgan (J.P.) & Co.
3/3/97 5.34 10,000,000 9,997,056
National Bank of Canada
3/3/97 5.43 8,000,000 7,997,618
National Rural Util. Coop. Fin. Corp.
3/4/97 5.34 14,000,000 13,993,817
Nationwide Building Society
4/24/97 5.43 15,000,000 14,879,400
5/13/97 5.38 10,000,000 9,892,325
New Center Asset Trust
3/11/97 5.79 5,000,000 4,992,187
3/17/97 5.39 15,000,000 14,964,666
Norfolk Southern Corp.
3/3/97 5.27 6,525,000 6,523,093
PHH Corp.
4/11/97 5.32 5,405,000 5,372,498
Preferred Receivables Funding Corp.
4/22/97 5.35 20,000,000 19,846,889
4/25/97 5.35 35,000,000 34,717,132
SBC Finance (Del.), Inc.
3/11/97 5.76 50,000,000 49,922,222
Sears Roebuck Acceptance Corp.
3/19/97 5.37 12,000,000 11,968,020
Sherwood Medical Co.
3/10/97 5.43 4,207,000 4,201,367
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Southern Company Group
3/12/97 5.40% $ 3,000,000 $ 2,995,096
4/7/97 5.44 15,000,000 14,917,213
Textron, Inc.
3/3/97 5.50 1,000,000 999,696
3/4/97 5.50 3,000,000 2,998,633
3/5/97 5.48 2,000,000 1,998,789
3/12/97 5.48 3,000,000 2,995,005
3/14/97 5.47 1,500,000 1,497,054
3/21/97 5.47 7,000,000 6,978,844
Unifunding, Inc.
3/6/97 5.41 10,000,000 9,992,555
4/28/97 5.43 12,000,000 11,896,566
Westpac Capital Corp.
3/13/97 5.70 5,000,000 4,990,767
6/3/97 5.44 10,000,000 9,860,306
TOTAL COMMERCIAL PAPER 1,760,593,867
FEDERAL AGENCIES - 10.9%
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 0.3%
3/4/97 5.40 22,000,000 21,985,415
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 0.4%
4/29/97 5.34 25,000,000 24,786,945
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 0.6%
3/7/97 5.31 38,490,000 38,456,514
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 6.7%
3/2/97 5.38 65,000,000 64,991,426
3/3/97 5.40 100,000,000 100,000,000
3/9/97 5.40 80,000,000 79,946,036
3/13/97 5.43 50,000,000 49,969,023
3/15/97 5.36 50,000,000 49,993,412
3/20/97 5.49 15,000,000 14,999,172
3/29/97 5.31 33,000,000 32,994,564
5/1/97 5.46 15,000,000 14,995,963
407,889,596
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 2.9%
3/21/97 5.43 28,260,000 28,175,691
3/26/97 5.44 10,410,000 10,371,179
4/1/97 5.31 50,000,000 49,776,112
4/21/97 5.34 49,500,000 49,134,648
4/30/97 5.34 32,000,000 31,722,667
169,180,297
TOTAL FEDERAL AGENCIES 662,298,767
U.S. TREASURY OBLIGATIONS - 0.8%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS - 0.8%
3/5/98 5.67% $ 50,000,000 $ 47,290,222
BANK NOTES - 4.3%
Bank of America National Trust & Savings Assoc.
3/12/97 5.75 25,000,000 25,000,000
6/19/97 5.50 50,000,000 50,000,000
Bank of New York, NY
3/3/98 5.80 30,000,000 29,985,564
First of America Bank, Michigan
6/4/97 5.44 10,000,000 9,998,952
Huntington National Bank
9/30/97 5.85 10,000,000 10,012,204
Key Bank, N.A. (a)
3/3/97 5.35 15,000,000 14,996,390
3/3/97 5.45 25,000,000 24,994,608
Key Bank of New York
3/3/97 5.36 (a) 27,000,000 26,992,338
Morgan Guaranty Trust, NY
6/6/97 6.00 10,000,000 9,998,725
PNC Bank (a)
3/10/97 5.44 32,000,000 31,995,041
3/11/97 5.35 25,000,000 24,987,823
TOTAL BANK NOTES 258,961,645
MASTER NOTES (A) - 2.3%
Goldman Sachs Group, L.P. (The)
5/8/97 5.55 26,000,000 26,000,000
J.P. Morgan Securities
3/7/97 5.41 14,000,000 14,000,000
3/7/97 5.44 70,000,000 70,000,000
Norwest Corp.
3/3/97 5.44 32,000,000 32,000,000
TOTAL MASTER NOTES 142,000,000
MEDIUM-TERM NOTES (A) - 2.5%
General Motors Acceptance Corp.
5/1/97 5.56 26,000,000 26,000,000
6/23/97 5.62 25,000,000 24,567,354
2/13/98 5.46 11,000,000 10,997,891
Merrill Lynch & Co., Inc.
3/18/97 5.43 22,000,000 21,997,979
Norwest Corp.
4/22/97 5.55 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. (c)
3/9/97 5.61% $ 10,000,000 $ 10,000,000
Transamerica Life Insurance and Annuity Co. (c)
3/3/97 5.47 10,000,000 10,000,000
3/16/97 5.57 16,000,000 16,000,000
TOTAL MEDIUM-TERM NOTES 150,563,224
SHORT-TERM NOTES (A) - 4.6%
CSA Funding - C
3/7/97 5.42 5,000,000 5,000,000
Capital One Funding Corp. (1994-C)
3/7/97 5.37 17,591,000 17,591,000
Capital One Funding Corp. (1995-D)
3/7/97 5.37 16,799,000 16,799,000
Capital One Funding Corp. (1995-E)
3/7/97 5.37 10,244,000 10,244,000
Liquid Asset Backed Securities Trust (1996-1) (b)
3/15/97 5.45 28,000,000 28,000,000
Liquid Asset Backed Securities Trust (1996-2) (b)
3/3/97 5.47 35,000,000 35,000,000
SMM Trust (1996-I) (b)
3/17/97 5.46 35,000,000 35,000,000
SMM Trust (1996-P) (b)
3/31/97 5.43 45,000,000 45,000,000
SMM Trust (1996-V) (b)
3/26/97 5.64 89,000,000 89,000,000
TOTAL SHORT-TERM NOTES 281,634,000
TIME DEPOSITS - 1.8%
Bank of Tokyo - Mitsubishi Ltd.
4/3/97 5.50 16,000,000 16,000,000
SunTrust Bank, Atlanta
3/3/97 5.44 90,000,000 90,000,000
TOTAL TIME DEPOSITS 106,000,000
REPURCHASE AGREEMENTS - 4.6%
MATURITY
AMOUNT
In a joint trading account
(U.S. Treasury Obligations)
dated 2/19/97 due 3/12/97:
At 5.30% $ 150,463,750 150,000,000
MATURITY VALUE
AMOUNT (NOTE 1)
dated 2/24/97 due 3/3/97:
At 5.36% $ 80,083,378 $ 80,000,000
dated 2/25/97 due 3/4/97:
At 5.37% 50,052,208 50,000,000
dated 2/28/97 due 3/3/97:
At 5.43% 544,246 544,000
TOTAL REPURCHASE AGREEMENTS 280,544,000
TOTAL INVESTMENTS - 100% $6,070,911,391
Total Cost for Income Tax Purposes $ 6,070,911,391
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 $232,000,000 or 3.9% of net
assets.
3. Restricted security; subject to resale restrictions.
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>
FEBRUARY 28, 1997 (UNAUDITED)
4.ASSETS
Investment in securities, at value (including repurchase agreements of $280,544,000) - $ 6,070,911,391
See accompanying schedule
Receivable for fund shares sold 5,051,857
Interest receivable 34,028,841
5.TOTAL ASSETS 6,109,992,089
6.LIABILITIES
Payable to custodian bank $ 185,413
Payable for investments purchased 218,601,043
Distributions payable 349,913
Accrued management fee 1,906,067
Other payables and accrued expenses 32,075
7.TOTAL LIABILITIES 221,074,511
8.NET ASSETS $ 5,888,917,578
Net Assets consist of:
Paid in capital $ 5,889,209,086
Accumulated net realized gain (loss) on investments (291,508)
9.NET ASSETS, for 5,889,209,086 shares outstanding $ 5,888,917,578
10.NET ASSET VALUE, offering price and redemption price per share $1.00
($5,888,917,578 (divided by) 5,889,209,086 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED FEBRUARY 28, 1997 (UNAUDITED)
11.12.INTEREST INCOME $ 155,447,432
13.EXPENSES
Management fee $ 11,771,892
Non-interested trustees' compensation 33,014
Total expenses before reductions 11,804,906
Expense reductions (836,409) 10,968,497
14.NET INTEREST INCOME 144,478,935
15.16.NET REALIZED GAIN (LOSS) ON INVESTMENTS (42,953)
17.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 144,435,982
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
FEBRUARY 28, 1997 AUGUST 31, 1996
(UNAUDITED)
18.INCREASE (DECREASE) IN NET ASSETS
Operations $ 144,478,935 $ 256,164,758
Net interest income
Net realized gain (loss) (42,953) (42,074)
19.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 144,435,982 256,122,684
Distributions to shareholders from net interest income (144,478,935) (256,164,758)
Share transactions at net asset value of $1.00 per share 2,809,787,531 5,429,621,106
Proceeds from sales of shares
Reinvestment of distributions from net interest income 144,007,750 252,826,219
Cost of shares redeemed (2,392,091,967) (4,704,989,059)
20. NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS 561,703,314 977,458,266
21.TOTAL INCREASE (DECREASE) IN NET ASSETS 561,660,361 977,416,192
22.NET ASSETS
Beginning of period 5,327,257,217 4,349,841,025
End of period $ 5,888,917,578 $ 5,327,257,217
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED AUGUST 31, TEN MONTHS
ENDED ENDED
FEBRUARY 28, 1997 AUGUST 31,
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
(UNAUDITED) 1996 1995 1994 1993 1992
23.SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .026 .053 .054 .034 .030 .035
Net interest income
Less Distributions
From net interest income (.026) (.053) (.054) (.034) (.030) (.035)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
24.TOTAL RETURN B, C 2.60% 5.40% 5.57% 3.41% 3.09% 3.50%
25.RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 5,888,918 $ 5,327,257 $ 4,349,841 $ 2,799,925 $ 1,705,966 $ 1,516,346
Ratio of expenses to average net .42% A .37% .42% .42% .42% .42% A
assets E
Ratio of expenses to average net .39% A, .34% .42% .42% .42% .42% A
assets after expense reductions D D
Ratio of net interest income to average 5.14% A 5.31% 5.49% 3.44% 3.05% 4.12% A
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C 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).
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).
E 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1997 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Retirement Money Market Portfolio (the fund) is a fund of Fidelity Money
Market Trust (the trust) and is authorized to issue an unlimited number of
shares. The trust is registered under the Investment Company Act of 1940,
as amended (the 1940 Act), as an open-end management investment company
organized as a Delaware business trust. The financial state-
ments 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 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.
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.
4. EXPENSE REDUCTIONS.
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 $836,409 under these
arrangements.
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 *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Thomas R. Williams *
* 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
