<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
INVESTMENTS AUGUST 31, 1998
Showing Percentage of Total Value of Investment in Securities
FEDERAL AGENCIES - 52.4%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE
FANNIE MAE - 28.5%
Agency Coupons - 22.5%
9/1/98 5.49% (b) $ 49,000,000 $ 48,989,723
9/1/98 5.55 (b) 30,000,000 29,990,178
9/5/98 5.43 (b) 81,000,000 80,951,413
9/9/98 5.77 16,000,000 15,999,520
9/9/98 5.79 12,290,000 12,289,582
9/15/98 5.45 (b) 31,000,000 30,978,452
9/17/98 5.43 (b) 59,000,000 58,978,556
9/28/98 5.44 (b) 48,000,000 47,963,546
10/2/98 5.35 20,365,000 20,366,777
10/30/98 5.54 (b) 48,000,000 47,965,709
11/14/98 5.48 (b) 32,000,000 31,981,333
11/20/98 5.73 28,000,000 27,991,163
11/28/98 5.46 (b) 110,000,000 109,928,335
2/12/99 5.43 30,000,000 29,977,968
2/19/99 5.43 19,000,000 18,986,905
2/23/99 5.45 13,000,000 12,993,100
2/23/99 5.47 16,000,000 15,989,942
2/26/99 5.56 32,000,000 31,960,674
3/16/99 5.52 32,000,000 31,980,239
3/26/99 5.55 45,000,000 44,974,603
4/15/99 5.54 15,000,000 14,980,790
766,218,508
Discount Notes - 6.0%
9/15/98 5.52 24,388,000 24,336,121
9/21/98 5.51 50,000,000 49,849,167
1/15/99 5.53 81,000,000 79,353,720
6/14/99 5.41 25,000,000 23,969,208
8/4/99 5.43 9,865,000 9,388,488
8/4/99 5.44 18,000,000 17,128,855
204,025,559
FEDERAL FARM CREDIT BANK - 1.8%
Agency Coupons - 1.8%
9/2/98 5.76 30,000,000 29,999,895
9/10/98 5.47 (b) 30,000,000 29,992,185
59,992,080
FEDERAL HOME LOAN BANK - 15.1%
Agency Coupons - 13.4%
9/1/98 5.49% (b) $ 79,000,000 $ 78,972,993
9/1/98 5.56 (b) 33,000,000 32,996,081
9/1/98 5.63 (b) 32,000,000 31,984,000
9/18/98 5.76 46,000,000 45,999,282
9/24/98 5.71 20,000,000 19,998,790
10/23/98 5.70 30,000,000 29,996,709
10/23/98 5.73 30,000,000 29,995,470
10/30/98 5.72 23,795,000 23,794,231
11/27/98 5.46 (b) 25,000,000 24,984,764
12/17/98 5.81 32,000,000 31,994,747
3/11/99 5.48 (a) 32,000,000 32,017,087
3/26/99 5.58 30,000,000 29,974,095
5/19/99 5.56 18,000,000 17,999,134
6/22/99 5.58 23,365,000 23,342,792
454,050,175
Discount Notes - 1.7%
1/15/99 5.53 60,000,000 58,780,987
FREDDIE MAC - 6.3%
Agency Coupons - 4.5%
9/21/98 5.44 (b) 32,000,000 31,981,854
11/27/98 5.54 (b) 31,000,000 30,956,461
3/12/99 5.52 24,000,000 24,001,262
8/13/99 5.52 66,000,000 65,966,240
152,905,817
Discount Notes - 1.8%
12/7/98 5.50 63,000,000 62,087,594
STUDENT LOAN MARKETING ASSOCIATION - 0.7%
Agency Coupons - 0.7%
2/10/99 5.53 25,000,000 24,970,975
TOTAL FEDERAL AGENCIES 1,783,031,695
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 47.6%
MATURITY VALUE (NOTE 1)
AMOUNT
In a joint trading account (Note 2)
(U.S. Government Obligations) dated:
6/16/98 due 9/16/98 At 5.55% $ 15,212,750 $ 15,000,000
7/15/98 due 9/16/98 At 5.55% 31,301,088 31,000,000
7/16/98 due 9/16/98 At 5.55% 63,602,175 63,000,000
8/6/98 due 9/8/98 At 5.56% 22,112,127 22,000,000
7/6/98 due:
9/9/98 At 5.56% 91,913,539 91,000,000
9/9/98 At 5.56% 23,230,894 23,000,000
3/23/98 due 9/14/98 At 5.56% 154,054,167 150,000,000
8/13/98 due 9/14/98 At 5.56% 35,172,978 35,000,000
8/20/98 due 10/19/98 At 5.56% 65,602,333 65,000,000
8/24/98 due 9/23/98 At 5.57% 63,292,425 63,000,000
7/2/98 due 9/30/98 At 5.57% 32,445,600 32,000,000
8/25/98 due 11/2/98 At 5.57% 50,533,792 50,000,000
8/12/98 due 11/10/98 At 5.57% 101,392,500 100,000,000
7/30/98 due 9/28/98 At 5.58% 49,455,700 49,000,000
7/1/98 due 9/29/98 At 5.58% 129,785,600 128,000,000
7/31/98 due 10/13/98 At 5.58% 32,367,040 32,000,000
8/26/98 due:
9/2/98 At 5.60% 33,035,933 33,000,000
9/2/98 At 5.60% 33,035,933 33,000,000
8/3/98 due 1/13/99 At 5.60% 35,887,444 35,000,000
8/31/98 due 9/1/98 At 5.86% 572,280,079 572,187,000
TOTAL REPURCHASE AGREEMENTS 1,622,187,000
TOTAL INVESTMENTS - 100% $ 3,405,218,695
</TABLE>
Total Cost for Income Tax Purposes $ 3,405,218,695
LEGEND
(a) Security purchased on a delayed delivery or when-issued basis (see
Note 2 of Notes to Financial Statements).
(b) 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.
INCOME TAX INFORMATION
At August 31, 1998, 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
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1998
ASSETS
Investment in securities, at value (including repurchase $ 3,405,218,695
agreements of $1,622,187,000) -
See accompanying schedule
Receivable for fund shares sold 74,999,021
Interest receivable 22,668,092
TOTAL ASSETS 3,502,885,808
LIABILITIES
Payable to custodian bank $ 237
Payable for investments purchased 31,984,000
Regular delivery
Delayed delivery 32,017,087
Payable for fund shares redeemed 35,575,260
Distributions payable 90,812
Accrued management fee 1,162,686
Other payables and accrued expenses 18,341
TOTAL LIABILITIES 100,848,423
NET ASSETS $ 3,402,037,385
Net Assets consist of:
Paid in capital $ 3,402,328,981
Accumulated net realized gain (loss) on investments (291,596)
NET ASSETS, for 3,402,231,181 shares outstanding $ 3,402,037,385
NET ASSET VALUE, offering price and redemption price per $1.00
share ($3,402,037,385 (divided by) 3,402,231,181 shares)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 1998
INTEREST INCOME $ 171,886,379
EXPENSES
Management fee $ 12,714,749
Non-interested trustees' compensation 11,607
Total expenses before reductions 12,726,356
Expense reductions (962,269) 11,764,087
NET INTEREST INCOME 160,122,292
NET REALIZED GAIN (LOSS) ON INVESTMENTS (13,200)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 160,109,092
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
AUGUST 31, 1998 AUGUST 31, 1997
INCREASE (DECREASE) IN NET ASSETS
Operations $ 160,122,292 $ 141,415,424
Net interest income
Net realized gain (loss) (13,200) 57,726
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 160,109,092 141,473,150
FROM OPERATIONS
Distributions to shareholders from net interest income (160,122,292) (141,415,424)
Share transactions at net asset value of $1.00 per share 4,216,554,049 3,458,323,232
Proceeds from sales of shares
Reinvestment of distributions from net interest income 159,999,327 141,415,424
Cost of shares redeemed (3,874,344,275) (3,222,561,829)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 502,209,101 377,176,827
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 502,195,901 377,234,553
NET ASSETS
Beginning of period 2,899,841,484 2,522,606,931
End of period $ 3,402,037,385 $ 2,899,841,484
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED AUGUST 31,
1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .053 .052 .052 .053 .032
Operations
Net interest income
Less Distributions
From net interest income (.053) (.052) (.052) (.053) (.032)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 5.41% 5.31% 5.36% 5.46% 3.27%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,402 $ 2,900 $ 2,523 $ 2,270 $ 1,655
(in millions)
Ratio of expenses to average .42% .42% .37% B .42% .42%
net assets
Ratio of expenses to average .39% C .39% C .34% C .42% .42%
net assets after expense
reductions
Ratio of net interest income to 5.28% 5.16% 5.27% 5.38% 3.26%
average net assets
</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, 1998
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 require
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
among 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.
2. OPERATING POLICIES -
CONTINUED
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. 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 involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, the fund had no investments in restricted
securities.
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 investments in
repurchase agreements through the joint trading account are summarized
as follows:
SUMMARY OF JOINT TRADING
DATED AUGUST 31, 1998, DUE SEPTEMBER 1, 1998 5.86%
Number of dealers or banks 7
Maximum amount with one dealer or bank 26.8%
Aggregate principal amount of agreements $3,212,361,000
Aggregate maturity amount of agreements $3,212,883,565
Aggregate market value of transferred assets $3,285,651,549
Coupon rates of transferred assets 0% to 13.25%
Maturity dates of transferred assets 9/1/98 to 3/1/38
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED AUGUST 26, 1998, DUE SEPTEMBER 2, 1998 5.60%
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 $100,108,889
Aggregate market value of transferred assets $102,504,965
Coupon rates of transferred assets 6.0% to 9.0%
Maturity dates of transferred assets 8/1/00 to 9/1/28
DATED AUGUST 26, 1998, DUE SEPTEMBER 2, 1998 5.60%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $400,000,000
Aggregate maturity amount of agreements $400,435,556
Aggregate market value of transferred assets $408,034,155
Coupon rates of transferred assets 6.14% to 6.15%
Maturity dates of transferred assets 8/1/08 to 4/1/34
DATED AUGUST 6, 1998, DUE SEPTEMBER 8, 1998 5.56%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $65,000,000
Aggregate maturity amount of agreements $65,331,283
Aggregate market value of transferred assets $66,810,540
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 1/1/24 to 11/1/37
DATED JULY 6, 1998, DUE SEPTEMBER 9, 1998 5.56%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $41,000,000
Aggregate maturity amount of agreements $41,411,594
Aggregate market value of transferred assets $41,970,177
Coupon rates of transferred assets 8.50% to 9.0%
Maturity dates of transferred assets 5/15/16 to 2/15/28
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED JULY 6, 1998, DUE SEPTEMBER 9, 1998 5.56%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $150,000,000
Aggregate maturity amount of agreements $151,505,833
Aggregate market value of transferred assets $153,549,427
Coupon rates of transferred assets 8.50% to 9.0%
Maturity dates of transferred assets 5/15/16 to 2/15/28
DATED MARCH 23, 1998, DUE SEPTEMBER 14, 1998 5.56%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $300,000,000
Aggregate maturity amount of agreements $308,108,333
Aggregate market value of transferred assets $306,496,227
Coupon rates of transferred assets 8.50% to 9.0%
Maturity dates of transferred assets 1/15/16 to 1/15/28
DATED AUGUST 13, 1998, DUE SEPTEMBER 14, 1998 5.56%
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 $100,494,222
Aggregate market value of transferred assets $102,116,015
Coupon rates of transferred assets 5.50% to 10.0%
Maturity dates of transferred assets 1/1/01 to 9/1/28
DATED JUNE 16, 1998, DUE SEPTEMBER 16, 1998 5.55%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $50,000,000
Aggregate maturity amount of agreements $50,709,167
Aggregate market value of transferred assets $51,598,468
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 1/1/18 to 9/1/33
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED JULY 15, 1998, DUE SEPTEMBER 16, 1998 5.55%
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 $100,971,250
Aggregate market value of transferred assets $102,000,000
Coupon rates of transferred assets 0% to 8.50%
Maturity dates of transferred assets 9/1/03 to 4/1/35
DATED JULY 16, 1998, DUE SEPTEMBER 16, 1998 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 $201,911,667
Aggregate market value of transferred assets $204,000,000
Coupon rates of transferred assets 0% to 8.50%
Maturity dates of transferred assets 9/1/03 to 4/1/35
DATED AUGUST 24, 1998, DUE SEPTEMBER 23, 1998 5.57%
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 $100,464,167
Aggregate market value of transferred assets $102,184,428
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 1/1/23 to 8/1/34
DATED JULY 30, 1998, DUE SEPTEMBER 28, 1998 5.58%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $80,000,000
Aggregate maturity amount of agreements $80,744,000
Aggregate market value of transferred assets $82,418,290
Coupon rates of transferred assets 5.50% to 12.0%
Maturity dates of transferred assets 9/1/98 to 8/1/28
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED JULY 1, 1998, DUE SEPTEMBER 29, 1998 5.58%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $400,000,000
Aggregate maturity amount of agreements $405,580,000
Aggregate market value of transferred assets $411,860,802
Coupon rates of transferred assets 0% to 14.0%
Maturity dates of transferred assets 1/1/99 to 8/1/28
DATED JULY 2, 1998, DUE SEPTEMBER 30, 1998 5.57%
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 $101,392,500
Aggregate market value of transferred assets $102,369,112
Coupon rates of transferred assets 8.50% to 9.0%
Maturity dates of transferred assets 4/15/16 to 2/15/28
DATED JULY 31, 1998, DUE OCTOBER 13, 1998 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 $101,147,000
Aggregate market value of transferred assets $102,962,959
Coupon rates of transferred assets 0% to 11.50%
Maturity dates of transferred assets 5/1/99 to 11/1/32
DATED AUGUST 20, 1998, DUE OCTOBER 19, 1998 5.56%
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 $201,853,333
Aggregate market value of transferred assets $205,890,943
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 8/1/25 to 11/1/32
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED AUGUST 25, 1998, DUE NOVEMBER 2, 1998 5.57%
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 $101,067,583
Aggregate market value of transferred assets $102,204,727
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 3/1/19 to 8/1/34
DATED AUGUST 12, 1998, DUE NOVEMBER 10, 1998 5.57%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $140,000,000
Aggregate maturity amount of agreements $141,949,500
Aggregate market value of transferred assets $143,618,395
Coupon rates of transferred assets 0% to 12.50%
Maturity dates of transferred assets 10/1/98 to 8/1/28
DATED AUGUST 3, 1998, DUE JANUARY 13, 1999 5.60%
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 $102,535,556
Aggregate market value of transferred assets $102,000,000
Coupon rates of transferred assets 0% to 8.50%
Maturity dates of transferred assets 9/1/03 to 4/1/35
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 interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .42% of the fund's average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, 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 $962,269 under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Money Market Trust and the Shareholders of
Retirement Government Money Market Portfolio:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Retirement Government Money Market Portfolio (a fund of Fidelity Money
Market Trust) at August 31, 1998, and the results of its operations,
the changes in its net assets and the financial highlights for the
periods indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Retirement Government Money Market Portfolio's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We
believe that our audits, which included confirmation of securities at
August 31, 1998 by correspondence with the custodian and brokers,
provide a reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 6, 1998
DISTRIBUTIONS
A total of 19.14% of the dividends distributed during the fiscal year
was derived from interest on U.S. Government securities which is
generally exempt from state income tax.
The fund will notify shareholders in January 1999 of the applicable
percentage for use in preparing 1998 income tax returns.
INVESTMENT ADVISER
Fidelity Management &
Research Company
Boston, MA
SUB-ADVISER
Fidelity Investments Money
Management, Inc.
Merrimack, NH
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
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Stanley N. Griffith,
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
(registered trademark)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
INVESTMENTS AUGUST 31, 1998
Showing Percentage of Total Value of Investment in Securities
CERTIFICATES OF DEPOSIT - 30.2%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANK - 0.3%
ABN-AMRO Bank NV
2/2/99 5.54% $ 25,000,000 $ 24,995,863
DOMESTIC CERTIFICATES OF DEPOSIT - 0.9%
CoreStates Bank, NA, Philadelphia
9/9/98 5.60 (b) 5,000,000 5,000,000
First Tennessee Bank, NA
9/14/98 5.58 15,000,000 14,999,830
Fleet National Bank
9/15/98 5.55 50,000,000 50,000,000
69,999,830
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 0.4%
NationsBank, NA
2/16/99 5.60 30,000,000 30,000,000
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 7.8%
Abbey National Treasury Services, PLC
9/28/98 5.60 25,000,000 25,000,000
10/6/98 5.61 50,000,000 50,000,000
Australia & New Zealand Banking Group Ltd.
9/30/98 5.63 25,000,000 25,000,306
Banque Nationale de Paris
9/17/98 5.60 25,000,000 25,000,381
Barclays Bank, PLC
9/24/98 5.60 10,000,000 10,000,000
10/6/98 5.63 100,000,000 100,000,000
10/21/98 5.60 10,000,000 10,000,000
10/28/98 5.65 30,000,000 29,998,328
Commerzbank AG
9/28/98 5.55 15,000,000 15,000,000
Deutsche Bank AG
9/28/98 5.55 120,000,000 120,000,000
Halifax, PLC
10/23/98 5.58 50,000,000 50,000,000
National Australia Bank Ltd.
9/16/98 5.60 25,000,000 24,999,729
Norddeutsche Landesbank Girozentrale
9/8/98 5.57 8,000,000 8,000,000
10/13/98 5.57 15,000,000 14,999,790
RaboBank Nederland, Coop. Central
9/9/98 5.61 25,000,000 25,000,000
Toronto-Dominion Bank
10/14/98 5.93% $ 25,000,000 $ 25,000,000
2/11/99 5.60 50,000,000 50,006,219
Westdeutsche Landesbank Girozentrale
10/20/98 5.58 35,000,000 35,000,000
643,004,753
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 20.8%
ABN-AMRO Bank NV
3/12/99 5.72 10,000,000 9,991,944
Banque Nationale de Paris
10/26/98 5.59 50,000,000 50,000,377
Bayerische Landesbank Girozentrale
12/1/98 5.56 25,000,000 25,000,000
Bayerische Vereinsbank AG
2/2/99 5.59 48,000,000 48,002,746
Canadian Imperial Bank of Commerce
9/9/98 5.56 35,000,000 35,000,000
11/4/98 5.55 55,000,000 55,000,000
12/1/98 5.54 45,000,000 45,000,000
3/2/99 5.70 30,000,000 29,990,680
Commerzbank AG
9/10/98 5.55 100,000,000 100,000,000
Credit Agricole Indosuez
10/21/98 5.62 50,000,000 50,000,000
12/2/98 5.48 50,000,000 50,000,000
2/26/99 5.70 15,000,000 14,997,195
Credit Communale de Belgique
11/2/98 5.50 15,000,000 15,000,000
2/3/99 5.64 30,000,000 30,000,000
Deutsche Bank AG
10/20/98 5.63 40,000,000 40,001,385
10/20/98 5.65 30,000,000 30,000,797
3/2/99 5.70 30,000,000 29,992,831
Dresdner Bank AG
9/8/98 5.56 34,000,000 34,000,000
9/15/98 5.55 65,000,000 65,000,000
9/16/98 5.55 55,000,000 55,000,000
National Bank of Canada
9/8/98 5.56% $ 15,000,000 $ 14,999,915
National Westminster Bank, PLC
9/9/98 5.56 65,000,000 65,000,000
9/25/98 5.88 11,000,000 10,999,372
2/26/99 5.70 25,000,000 24,995,326
3/2/99 5.70 30,000,000 29,992,831
6/7/99 5.75 50,000,000 49,975,292
Norddeutsche Landesbank Girozentrale
10/21/98 5.97 45,000,000 44,996,906
RaboBank Nederland, Coop. Central
2/2/99 5.54 25,000,000 24,995,863
2/2/99 5.70 30,000,000 29,961,588
3/2/99 5.50 45,000,000 45,000,000
6/1/99 5.75 25,000,000 24,987,460
Royal Bank of Canada
2/10/99 5.60 25,000,000 24,992,548
2/26/99 5.63 40,000,000 39,987,838
6/11/99 5.80 25,000,000 24,987,007
Royal Bank of Scotland, PLC
11/25/98 5.58 35,000,000 35,000,000
Societe Generale, France
10/28/98 5.57 90,000,000 90,000,000
Swiss Bank Corp.
3/19/99 5.70 50,000,000 49,981,710
3/24/99 5.75 50,000,000 49,972,736
6/3/99 5.75 50,000,000 49,978,346
Toronto-Dominion Bank
12/2/98 5.49 40,000,000 40,000,000
6/4/99 5.75 50,000,000 49,974,645
Westdeutsche Landesbank Girozentrale
9/8/98 5.56 17,000,000 17,000,000
9/28/98 5.55 30,000,000 30,000,000
2/4/99 5.64 35,000,000 35,000,000
1,714,757,338
TOTAL CERTIFICATES OF DEPOSIT 2,482,757,784
COMMERCIAL PAPER - 47.9%
ABN-AMRO North America, Inc.
10/5/98 5.61% $ 40,000,000 $ 39,794,111
AC Acquisition Holding Co.
10/16/98 5.56 20,000,000 19,862,000
American Express Credit Corp.
9/15/98 5.57 25,000,000 24,946,333
American General Finance Corp.
9/22/98 5.60 10,000,000 9,967,742
Aspen Funding Corp.
9/17/98 5.58 10,000,000 9,975,333
10/15/98 5.58 30,000,000 29,797,233
11/23/98 5.60 20,000,000 19,745,697
Asset Securitization Coop. Corp.
9/1/98 5.61 13,100,000 13,100,000
9/1/98 5.68 20,000,000 20,000,000
9/3/98 5.61 38,000,000 37,988,283
9/22/98 5.58 30,000,000 29,903,400
9/23/98 5.57 10,000,000 9,966,144
10/27/98 5.58 72,000,000 71,381,760
11/4/98 5.60 20,000,000 19,803,733
12/8/98 5.59 20,000,000 19,700,556
12/9/98 5.59 20,000,000 19,697,500
Associates Corp. of North America
9/8/98 5.60 15,000,000 14,983,871
9/22/98 5.60 15,000,000 14,951,875
10/20/98 5.59 23,000,000 22,827,506
10/21/98 5.59 10,000,000 9,923,472
AVCO Financial Services, Inc.
10/5/98 5.59 19,000,000 18,900,588
Barclays US Funding Corp.
9/8/98 5.55 110,000,000 109,881,826
Bear Stearns Companies, Inc.
9/23/98 5.57 25,000,000 24,915,819
9/23/98 5.58 25,000,000 24,915,667
BMW US Capital Corp.
9/1/98 5.58 15,000,000 15,000,000
9/2/98 5.58 20,000,000 19,996,922
11/10/98 5.54 33,359,000 33,003,541
11/20/98 5.55 19,617,000 19,378,109
CIESCO L.P.
9/22/98 5.55% $ 20,000,000 $ 19,935,600
CIT Group, Inc.
9/8/98 5.57 15,000,000 14,983,900
9/14/98 5.57 38,000,000 37,924,253
9/15/98 5.57 30,000,000 29,935,600
Citibank Credit Card Master Trust I (Dakota Certificate Program)
9/10/98 5.57 20,000,000 19,972,300
9/21/98 5.58 15,000,000 14,953,917
10/6/98 5.58 25,000,000 24,865,104
10/13/98 5.58 10,000,000 9,935,483
10/20/98 5.59 25,000,000 24,812,507
10/22/98 5.60 25,000,000 24,804,146
10/27/98 5.59 5,000,000 4,956,989
10/28/98 5.58 20,000,000 19,825,200
Commercial Credit Group, Inc.
10/14/98 5.60 10,000,000 9,933,888
Commonwealth Bank of Australia
9/8/98 5.55 10,000,000 9,989,267
Den Danske Corp., Inc.
9/30/98 5.60 10,000,000 9,955,775
Deutsche Bank Financial, Inc.
10/16/98 5.57 55,000,000 54,620,500
11/12/98 5.59 80,000,000 79,118,400
Diageo Capital, PLC
9/28/98 5.60 15,000,000 14,937,900
9/29/98 5.60 30,000,000 29,871,667
11/30/98 5.59 9,500,000 9,369,375
du Pont (E.I.) de Nemours & Co.
9/9/98 5.55 5,000,000 4,993,867
Enterprise Funding Corp.
9/1/98 5.92 20,000,000 20,000,000
9/3/98 5.58 25,000,000 24,992,319
9/16/98 5.57 30,140,000 30,070,301
9/17/98 5.56 5,000,000 4,987,689
9/23/98 5.58 14,651,000 14,601,577
10/22/98 5.58 5,000,000 4,960,829
Finova Capital Corp.
10/28/98 5.60 15,000,000 14,868,425
11/3/98 5.63 10,000,000 9,902,875
Fleet Funding Corp.
10/15/98 5.57% $ 30,000,000 $ 29,797,233
Ford Motor Credit Co.
9/8/98 5.55 200,000,000 199,785,334
9/17/98 5.54 70,000,000 69,828,267
10/5/98 5.57 50,000,000 49,739,333
11/10/98 5.57 30,000,000 29,679,750
2/1/99 5.61 20,000,000 19,535,900
General Electric Capital Corp.
9/10/98 5.61 15,000,000 14,979,338
9/17/98 5.57 40,000,000 39,901,867
9/21/98 5.55 35,000,000 34,892,667
10/8/98 5.63 75,000,000 74,575,271
10/14/98 5.60 50,000,000 49,669,139
10/20/98 5.62 5,000,000 4,962,569
10/27/98 5.59 25,000,000 24,785,333
11/24/98 5.58 20,000,000 19,743,333
2/1/99 5.62 100,000,000 97,675,250
General Electric Capital Services, Inc.
9/17/98 5.57 25,000,000 24,938,667
General Electric Co.
9/24/98 5.60 30,000,000 29,894,008
General Motors Acceptance Corp.
9/23/98 5.60 40,000,000 39,864,822
9/30/98 5.63 40,000,000 39,822,778
10/29/98 5.61 55,000,000 54,510,867
11/12/98 5.62 35,000,000 34,613,600
1/26/99 5.67 35,000,000 34,213,958
General Motors Corp.
9/10/98 5.56 25,000,000 24,965,375
9/15/98 5.59 35,000,000 34,924,458
9/16/98 5.58 5,000,000 4,988,458
9/23/98 5.56 14,000,000 13,952,688
9/23/98 5.57 10,000,000 9,966,144
GTE Corp.
9/3/98 5.60 15,000,000 14,995,350
9/24/98 5.60 5,000,000 4,982,207
10/6/98 5.59 20,000,000 19,891,889
Heller Financial, Inc.
9/16/98 5.69% $ 7,000,000 $ 6,983,521
9/21/98 5.70 12,000,000 11,962,333
9/23/98 5.65 5,000,000 4,982,828
10/28/98 5.70 10,000,000 9,911,017
Household Finance Corp.
9/22/98 5.56 40,000,000 39,870,967
Kitty Hawk Funding Corp.
10/7/98 5.58 25,069,000 24,930,118
11/30/98 5.59 10,000,000 9,862,250
Lehman Brothers Holdings, Inc.
9/8/98 5.59 25,000,000 24,972,924
10/15/98 5.61 25,000,000 24,830,417
Merrill Lynch & Co., Inc.
10/14/98 5.65 50,000,000 49,670,333
11/18/98 5.60 35,000,000 34,582,429
11/30/98 5.65 20,000,000 19,724,000
11/30/98 5.66 100,000,000 98,625,000
Monsanto Co.
11/3/98 5.60 15,000,000 14,855,100
Morgan Stanley, Dean Witter, Discover and Co.
9/15/98 5.60 (b) 25,000,000 25,000,000
10/8/98 5.60 30,000,000 29,829,800
NationsBank Corp.
11/16/98 5.60 10,000,000 9,883,678
Nationwide Building Society
10/5/98 5.61 10,000,000 9,948,056
10/26/98 5.61 90,000,000 89,245,583
11/2/98 5.63 20,000,000 19,810,556
New Center Asset Trust
9/21/98 5.56 30,000,000 29,907,833
9/21/98 5.61 45,000,000 44,861,750
9/22/98 5.62 40,000,000 39,870,733
9/30/98 5.64 35,000,000 34,844,649
Norfolk Southern Corp.
9/9/98 5.73 9,000,000 8,988,600
9/14/98 5.72 10,000,000 9,979,417
9/14/98 5.73 2,000,000 1,995,883
10/14/98 5.74 2,000,000 1,986,383
10/14/98 5.75 5,000,000 4,965,958
10/19/98 5.75 4,000,000 3,969,600
Preferred Receivables Funding Corp.
9/3/98 5.57% $ 65,450,000 $ 65,429,856
9/8/98 5.60 20,000,000 19,978,533
9/16/98 5.56 26,425,000 26,364,112
9/22/98 5.58 17,100,000 17,044,639
9/24/98 5.56 10,000,000 9,964,669
10/8/98 5.59 50,000,000 49,715,819
10/14/98 5.57 50,000,000 49,670,333
10/19/98 5.58 20,000,000 19,852,800
10/20/98 5.58 10,000,000 9,924,731
Royal Bank of Canada
9/25/98 5.56 25,000,000 24,908,000
9/25/98 5.57 30,000,000 29,889,400
Salomon Smith Barney
10/19/98 5.58 10,000,000 9,926,133
11/3/98 5.60 10,000,000 9,903,225
Sears Roebuck Acceptance Corp.
9/16/98 5.58 50,000,000 49,884,792
9/17/98 5.58 50,000,000 49,877,111
10/14/98 5.59 10,000,000 9,933,828
2/25/99 5.55 15,000,000 14,601,750
Societe Generale North America, Inc.
9/15/98 5.58 30,000,000 29,935,483
Textron, Inc.
9/1/98 5.72 10,000,000 10,000,000
9/9/98 5.73 6,953,000 6,944,193
Three Rivers Funding Corp.
9/2/98 5.57 24,543,000 24,539,216
9/3/98 5.57 10,000,000 9,996,917
9/10/98 5.58 10,000,000 9,986,125
9/15/98 5.58 14,341,000 14,309,992
Transamerica Finance Corp.
9/10/98 5.55 20,000,000 19,972,400
Triple A One Funding Corp.
9/9/98 5.58 10,120,000 10,107,519
9/15/98 5.58 10,000,000 9,978,456
9/17/98 5.57 10,000,000 9,975,378
9/17/98 5.58 5,099,000 5,086,422
10/7/98 5.59 10,000,000 9,944,600
10/8/98 5.58 15,000,000 14,914,746
10/19/98 5.58 15,175,000 15,063,110
UBS Finance (Delaware), Inc.
9/14/98 5.54% $ 19,500,000 $ 19,461,165
Unifunding, Inc.
12/16/98 5.65 15,000,000 14,757,525
Vereinsbank Finance (Del.), Inc.
9/2/98 5.60 40,000,000 39,993,789
TOTAL COMMERCIAL PAPER 3,947,153,010
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
BANK NOTES - 6.1%
Abbey National Treasury Services, PLC
11/17/98 5.54 (a)(b) 40,000,000 39,966,630
CoreStates Bank, NA, Philadelphia
9/14/98 5.61 (b) 10,000,000 10,000,000
First National Bank of Chicago
9/2/98 5.56 34,000,000 34,000,005
First Union National Bank of North Carolina
9/1/98 5.65 (b) 35,000,000 34,997,575
9/1/98 5.66 (b) 60,000,000 60,000,000
3/1/99 5.50 100,000,000 100,000,000
Key Bank, NA
9/1/98 5.62 (b) 15,000,000 14,996,927
9/21/98 5.52 (b) 30,000,000 29,980,089
9/23/98 5.52 (b) 10,000,000 9,999,526
LaSalle National Bank, Chicago
9/16/98 5.57 10,000,000 10,000,000
National City Bank, Kentucky
9/7/98 5.55 (b) 25,000,000 24,993,691
PNC Bank, NA
9/1/98 5.54 (b) 40,000,000 39,973,436
10/16/98 5.58 (b) 40,000,000 39,991,168
SouthTrust Bank, Alabama
9/11/98 5.55 (b) 11,000,000 10,999,825
US Bank, NA
9/16/98 5.53 (b) 11,000,000 10,999,667
Westpac Banking Corp.
5/5/99 5.85 35,000,000 34,988,677
TOTAL BANK NOTES 505,887,216
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MASTER NOTES - 2.7%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Goldman Sachs Group L.P. (The)
9/13/98 5.69% (b)(d) $ 110,000,000 $ 110,000,000
11/4/98 5.69 (b) 11,000,000 11,000,000
J.P. Morgan Securities, Inc.
9/8/98 5.63 (b) 25,000,000 25,000,000
9/8/98 5.63 (b) 67,000,000 67,000,000
SunTrust Banks, Inc.
9/4/98 5.60 (b) 10,000,000 10,000,000
TOTAL MASTER NOTES 223,000,000
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MEDIUM-TERM NOTES - 1.4%
Merrill Lynch & Co., Inc.
9/1/98 5.63 (b) 26,000,000 25,999,764
9/4/98 5.62 (b) 25,000,000 24,996,291
Morgan Stanley, Dean Witter, Discover & Co.
9/1/98 5.75 (b) 35,000,000 35,000,000
Norwest Corp.
10/22/98 5.71 (b) 31,000,000 31,000,000
TOTAL MEDIUM-TERM NOTES 116,996,055
SHORT-TERM NOTES - 6.3%
Capital One Funding Corp. (1994-C)
9/8/98 5.61 (b) 6,097,000 6,097,000
Capital One Funding Corp. (1994-E)
9/8/98 5.61 (b) 5,952,000 5,952,000
Capital One Funding Corp. (1995-D)
9/8/98 5.61 (b) 10,970,000 10,970,000
Capital One Funding Corp. (1995-E)
9/8/98 5.61 (b) 9,808,000 9,808,000
Capital One Funding Corp. (1995-F)
9/8/98 5.61 (b) 2,900,000 2,900,000
Liquid Asset Backed Securities Trust (1996-1)
9/15/98 5.63 (a)(b) 28,000,000 28,000,000
Liquid Asset Backed Securities Trust (1996-2)
9/1/98 5.64 (a)(b) 35,000,000 35,000,000
Liquid Asset Backed Securities Trust (1997-5)
9/17/98 5.63 (a)(b) 57,000,000 57,000,000
New York Life Insurance Co.
9/23/98 5.68% (b) $ 30,000,000 $ 30,000,000
11/28/98 5.64 (b) 25,000,000 25,000,000
Pacific Life Insurance Co.
9/9/98 5.73 (a)(b) 25,000,000 25,000,000
12/9/98 5.73(a)(b)(c) 25,000,000 25,000,000
Peoples Security Life Insurance Co.
9/1/98 5.80 (b)(d) 10,000,000 10,000,000
SMM Trust (1997-P)
9/16/98 5.65 (a)(b) 20,000,000 20,000,000
SMM Trust (1997-X)
9/14/98 5.65 (a)(b) 53,000,000 53,000,000
SMM Trust (1998-I)
9/28/98 5.65 (a)(b) 16,000,000 16,000,000
Strategic Money Market Trust (1997-A)
9/23/98 5.69 (a)(b) 82,000,000 82,000,000
Strategic Money Market Trust (1998-B)
9/7/98 5.66 (a)(b) 50,000,000 50,000,000
Transamerica Life Insurance & Annuity Co.
9/8/98 5.70 (b) 16,000,000 16,000,000
9/15/98 5.67 (a)(b) 10,000,000 10,000,000
TOTAL SHORT-TERM NOTES 517,727,000
</TABLE>
TIME DEPOSITS - 1.1%
RaboBank Nederland, Coop. Central
9/1/98 5.88 90,000,000 90,000,000
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 4.3%
MATURITY AMOUNT
In a joint trading account (U.S. Government
Obligations) dated:
8/26/98 due 9/2/98 At 5.60% $ 250,272,222 250,000,000
8/31/98 due 9/1/98 At 5.86% 101,344,483 101,328,000
TOTAL REPURCHASE AGREEMENTS 351,328,000
TOTAL INVESTMENTS - 100% $ 8,234,849,065
</TABLE>
Total Cost for Income Tax Purposes $ 8,234,849,065
LEGEND
(a) 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 $440,966,630 or 5.6% of net assets.
(b) 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.
(c) Security purchased on a delayed delivery or when-issued basis.
Interest rate to be determined at settlement date (see Note 2 of Notes
to Financial Statements).
(d) Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
SECURITY ACQUISTION ACQUISITION
DATE COST
Goldman Sachs 3/10/98 110,000,000
Group LP (The)
5.69% 9/13/98
Peoples Security 7/31/98 10,000,000
Life Insurance Co.
5.80% 9/1/98
INCOME TAX INFORMATION
At August 31, 1998, the fund had a capital loss carryforward of
approximately $395,000 of which $279,000, $42,000, $73,000 and $1,000
will expire on August 31, 2002, 2004, 2005 and 2006, respectively.
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1998
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (INCLUDING $ 8,234,849,065
REPURCHASE AGREEMENTS OF $351,328,000) -
SEE ACCOMPANYING SCHEDULE
RECEIVABLE FOR FUND SHARES SOLD 195,266,654
INTEREST RECEIVABLE 44,121,105
OTHER RECEIVABLES 1,981
TOTAL ASSETS 8,474,238,805
LIABILITIES
PAYABLE TO CUSTODIAN BANK $ 7,396
PAYABLE FOR INVESTMENTS PURCHASED 481,795,022
REGULAR DELIVERY
DELAYED DELIVERY 25,000,000
PAYABLE FOR FUND SHARES REDEEMED 43,108,126
DISTRIBUTIONS PAYABLE 84,450
ACCRUED MANAGEMENT FEE 2,649,738
OTHER PAYABLES AND ACCRUED EXPENSES 50,318
TOTAL LIABILITIES 552,695,050
NET ASSETS $ 7,921,543,755
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 7,921,972,481
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (428,726)
NET ASSETS, FOR 7,921,900,471 SHARES OUTSTANDING $ 7,921,543,755
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($7,921,543,755 (DIVIDED BY) 7,921,900,471 SHARES)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 1998
INTEREST INCOME $ 381,051,939
EXPENSES
MANAGEMENT FEE $ 27,958,963
NON-INTERESTED TRUSTEES' COMPENSATION 25,751
TOTAL EXPENSES BEFORE REDUCTIONS 27,984,714
EXPENSE REDUCTIONS (2,225,308) 25,759,406
NET INTEREST INCOME 355,292,533
NET REALIZED GAIN (LOSS) ON INVESTMENTS (34,936)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 355,257,597
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED YEAR ENDED
AUGUST 31, AUGUST 31,
1998 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 355,292,533 $ 309,818,664
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (34,936) (73,225)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 355,257,597 309,745,439
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (355,292,533) (309,818,664)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 11,617,803,340 7,484,258,226
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 354,492,137 309,818,664
COST OF SHARES REDEEMED (10,277,557,678) (6,894,419,990)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 1,694,737,799 899,656,900
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,694,702,863 899,583,675
NET ASSETS
BEGINNING OF PERIOD 6,226,840,892 5,327,257,217
END OF PERIOD $ 7,921,543,755 $ 6,226,840,892
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED AUGUST 31,
1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF PERIOD
INCOME FROM INVESTMENT OPERATIONS .053 .052 .053 .054 .034
NET INTEREST INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST INCOME (.053) (.052) (.053) (.054) (.034)
NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 5.46% 5.37% 5.40% 5.57% 3.41%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 7,922 $ 6,227 $ 5,327 $ 4,350 $ 2,800
(IN MILLIONS)
RATIO OF EXPENSES TO AVERAGE .42% .42% .37% B .42% .42%
NET ASSETS
RATIO OF EXPENSES TO AVERAGE NET .39% C .39% C .34% C .42% .42%
ASSETS AFTER EXPENSE REDUCTIONS
RATIO OF NET INTEREST INCOME 5.33% 5.21% 5.31% 5.49% 3.44%
TO AVERAGE NET ASSETS
</TABLE>
D 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).
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.
F 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, 1998
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 require 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
among the funds in the trust.
DEFERRED TRUSTEE COMPENSATION. Under a Deferred Compensation Plan (the
Plan) non-interested Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of, their annual
compensation. Deferred amounts are treated as though equivalent dollar
amounts had been invested in shares of the fund or are invested in a
cross-section of other Fidelity money market funds. Deferred amounts
remain in the fund until distributed in accordance with the Plan.
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.
2. OPERATING POLICIES -
CONTINUED
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. 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 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 $120,000,000 or 1.5% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .42% of the fund's average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, 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 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 $2,225,308 under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Money Market Trust and the Shareholders of
Retirement Money Market Portfolio:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Retirement Money Market Portfolio (a fund of Fidelity Money Market
Trust) at August 31, 1998, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Retirement Money Market Portfolio's management;
our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these
financial statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included
confirmation of securities at August 31, 1998 by correspondence with
the custodian and brokers, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 6, 1998
DISTRIBUTIONS
A total of 0.09% of the dividends distributed during the fiscal year
was derived from interest on U.S. Government securities which is
generally exempt from state income tax.
The fund will notify shareholders in January 1999 of the applicable
percentage for use in preparing 1998 income tax returns.
INVESTMENT ADVISER
Fidelity Management &
Research Company
Boston, MA
SUB-ADVISER
Fidelity Investments Money
Management, Inc.
Merrimack, NH
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
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Stanley N. Griffith,
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
(registered trademark)
