FIDELITY
(REGISTERED TRADEMARK)
MONEY MARKET TRUST:
RETIREMENT GOVERNMENT
MONEY MARKET PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 28, 1998
CONTENTS
SCHEDULE OF INVESTMENTS &
FINANCIAL STATEMENTS
INVESTMENTS 3 A COMPLETE LIST OF THE FUND'S INVESTMENTS.
FINANCIAL STATEMENTS 7 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.
NOTES 11 NOTES TO THE FINANCIAL STATEMENTS.
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, 1998 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS
FEDERAL AGENCIES - 58.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FANNIE MAE - AGENCY COUPONS - 24.3%
3/2/98 5.62% (a) $ 65,000,000 $ 65,047,082
3/2/98 5.66 (a) 49,000,000 48,972,840
3/13/98 5.84 25,000,000 24,996,807
3/15/98 5.49 (a) 125,000,000 124,956,941
3/17/98 5.49 (a) 59,000,000 58,955,208
3/17/98 5.60 41,000,000 41,020,641
3/18/98 5.91 (a) 25,000,000 24,996,591
4/15/98 6.06 33,000,000 32,995,321
4/17/98 6.11 28,000,000 27,993,521
5/21/98 5.96 34,000,000 33,989,022
8/14/98 5.71 32,000,000 31,977,586
8/14/98 5.80 23,000,000 22,975,566
9/9/98 5.77 16,000,000 15,988,417
9/9/98 5.79 12,290,000 12,280,019
10/2/98 5.35 20,365,000 20,377,326
11/20/98 5.73 28,000,000 27,970,837
2/12/99 5.43 30,000,000 29,953,249
2/19/99 5.43 19,000,000 18,972,814
2/23/99 5.45 13,000,000 12,985,788
2/23/99 5.47 16,000,000 15,979,423
2/26/99 5.56 32,000,000 31,920,023
725,305,022
FANNIE MAE - DISCOUNT NOTES - 5.8%
3/4/98 5.67 65,000,000 64,969,721
3/9/98 5.70 40,000,000 39,950,044
3/10/98 5.70 30,000,000 29,957,850
4/2/98 5.58 38,598,000 38,411,700
173,289,315
FEDERAL FARM CREDIT BANK - AGENCY COUPONS - 4.4%
3/10/98 5.50 (a) 30,000,000 29,983,310
4/1/98 6.01 33,000,000 32,994,199
4/1/98 6.05 40,000,000 39,992,332
9/2/98 5.76 30,000,000 29,980,537
132,950,378
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 17.6%
3/2/98 5.50 (a) 45,000,000 44,985,981
3/2/98 5.60 (a) 33,000,000 32,989,643
3/2/98 5.66 (a) 49,000,000 48,972,840
3/18/98 5.88 75,000,000 75,000,000
FEDERAL AGENCIES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL HOME LOAN BANK - AGENCY COUPONS - CONTINUED
3/19/98 5.59% (a) $ 55,000,000 $ 54,998,022
6/9/98 5.89 33,000,000 32,998,811
6/11/98 5.88 5,000,000 4,999,287
6/12/98 5.81 23,000,000 22,994,159
7/7/98 5.45 27,000,000 27,020,480
9/18/98 5.76 46,000,000 45,991,514
9/24/98 5.71 20,000,000 19,989,111
10/23/98 5.70 30,000,000 29,984,977
10/23/98 5.73 30,000,000 29,979,526
10/30/98 5.72 23,795,000 23,791,832
12/17/98 5.81 32,000,000 31,985,713
526,681,896
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 4.5%
3/6/98 5.66 71,000,000 70,944,975
3/11/98 5.57 40,000,000 39,939,778
8/26/98 5.47 24,000,000 23,368,693
134,253,446
FREDDIE MAC - AGENCY COUPONS - 1.8%
3/17/98 5.79 27,000,000 26,998,248
4/8/98 6.04 28,000,000 27,992,325
54,990,573
TOTAL FEDERAL AGENCIES 1,747,470,630
MEDIUM-TERM NOTES (A) - 0.0%
EXPORT-IMPORT BANK, U.S. (AS GUARANTOR FOR K.A. LEASING, LTD.) (B)
3/15/98 5.56 982,937 982,937
REPURCHASE AGREEMENTS - 41.6%
MATURITY
AMOUNT
In a joint trading account (Note 2 & 3):
(U.S. Treasury Obligations)
dated 2/27/98 due 3/2/98
At 5.64% $ 103,048,447 103,000,000
REPURCHASE AGREEMENTS - CONTINUED
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account (Note 2 & 3) - continued
(U.S. Government Obligations):
dated 2/27/98 due 3/2/98
At 5.70% $ 454,022,605 $ 453,807,000
dated 2/5/98 due 3/4/98
At 5.50% 120,495,000 120,000,000
dated 2/19/98 due 3/4/98
At 5.52% 71,141,527 71,000,000
dated 2/5/98 due 3/9/98
At 5.50% 60,293,333 60,000,000
dated 2/12/98 due 3/11/98
At 5.53% 65,269,588 65,000,000
dated 2/18/98 due 3/18/98
At 5.54% 119,512,758 119,000,000
dated 2/3/98 due 3/25/98
At 5.53% 89,683,569 89,000,000
dated 1/7/98 due 4/7/98
At 5.54% 35,484,750 35,000,000
dated 1/16/98 due 4/20/98
At 5.50% 4,057,444 4,000,000
dated 2/26/98 due 4/20/98
At 5.55% 63,514,763 63,000,000
dated 2/3/98 due 5/4/98
At 5.50% 60,825,000 60,000,000
TOTAL REPURCHASE AGREEMENTS 1,242,807,000
TOTAL INVESTMENTS - 100% $ 2,991,260,567
Total Cost for Income Tax Purposes $ 2,991,260,567
LEGEND
1. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
2. Restricted securities - Investment in securities not registered
under the Securities Act of 1933 (see Note 2 of Notes to Financial
Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Export-Import Bank,
U.S. (as guarantor for
K.A. Leasing, Ltd.) 7/8/94 $ 982,937
INCOME TAX INFORMATION
At August 31, 1997, the fund had a capital loss carryforward of
approximately $278,000 of which $171,000, $105,000 and $2,000 will
expire on August 31, 2002, 2003, and 2004, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (INCLUDING $ 2,991,260,567
REPURCHASE AGREEMENTS OF $1,242,807,000) -
SEE ACCOMPANYING SCHEDULE
CASH 2,344,598
INTEREST RECEIVABLE 24,186,167
TOTAL ASSETS 3,017,791,332
LIABILITIES
DISTRIBUTIONS PAYABLE $ 132,862
ACCRUED MANAGEMENT FEE 973,734
OTHER PAYABLES AND ACCRUED EXPENSES 18,485
TOTAL LIABILITIES 1,125,081
NET ASSETS $ 3,016,666,251
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 3,016,938,652
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (272,401)
NET ASSETS, FOR 3,016,840,852 SHARES OUTSTANDING $ 3,016,666,251
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($3,016,666,251 (DIVIDED BY) 3,016,840,852 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED FEBRUARY 28, 1998 (UNAUDITED)
INTEREST INCOME $ 83,246,258
EXPENSES
MANAGEMENT FEE $ 6,112,280
NON-INTERESTED TRUSTEES' COMPENSATION 5,219
TOTAL EXPENSES BEFORE REDUCTIONS 6,117,499
EXPENSE REDUCTIONS (448,012) 5,669,487
NET INTEREST INCOME 77,576,771
NET REALIZED GAIN (LOSS) ON INVESTMENTS 5,995
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 77,582,766
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31,
(UNAUDITED) 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 77,576,771 $ 141,415,424
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) 5,995 57,726
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 77,582,766 141,473,150
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (77,576,771) (141,415,424)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 1,906,417,442 3,458,323,232
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 77,486,992 141,415,424
COST OF SHARES REDEEMED (1,867,085,662) (3,222,561,829)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 116,818,772 377,176,827
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 116,824,767 377,234,553
NET ASSETS
BEGINNING OF PERIOD 2,899,841,484 2,522,606,931
END OF PERIOD $ 3,016,666,251 $ 2,899,841,484
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED AUGUST 31,
FEBRUARY 28, 1998
(UNAUDITED) 1997 1996 1995 1994 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF
PERIOD
INCOME FROM .026 .052 .052 .053 .032 .029
INVESTMENT
OPERATIONS
NET INTEREST
INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST (.026) (.052) (.052) (.053) (.032) (.029)
INCOME
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN B, C 2.67% 5.31% 5.36% 5.46% 3.27% 2.95%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END $ 3,017 $ 2,900 $ 2,523 $ 2,270 $ 1,655 $ 1,394
OF PERIOD
(IN MILLIONS)
RATIO OF EXPENSES .42% A .42% .37% D .42% .42% .42%
TO AVERAGE
NET ASSETS
RATIO OF EXPENSES .39% A, E .39% E .34% E .42% .42% .42%
TO AVERAGE NET
ASSETS AFTER
EXPENSE
REDUCTIONS
RATIO OF NET INTEREST 5.33% A 5.16% 5.27% 5.38% 3.26% 2.90%
INCOME TO
AVERAGE 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 5 OF NOTES TO
FINANCIAL STATEMENTS).
D 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.
E 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 February 28, 1998 (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
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
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 $982,937 or .03% 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 $103,048,447 at 5.64%,
$454,022,605 at 5.70%, $120,495,000 at 5.50%, $71,141,527 at 5.52%,
$60,293,333 at 5.50%, $65,269,588 at 5.53%, $119,512,758 at 5.54%,
$89,683,569 at 5.53%, $35,484,750 at 5.54%, $4,057,444 at 5.50%,
$63,514,763 at 5.55%, and $60,825,000 at 5.50%. The investments in
repurchase agreements through the joint trading account are summarized
as follows:
SUMMARY OF JOINT TRADING
DATED FEBRUARY 27, 1998, DUE MARCH 2, 1998 5.64%
Number of dealers or banks 7
Maximum amount with one dealer or bank 27.5%
Aggregate principal amount of agreements $4,480,402,000
Aggregate maturity amount of agreements $4,482,509,397
Aggregate market value of transferred assets $4,575,359,064
Coupon rates of transferred assets 0% to 14.25%
Maturity dates of transferred assets 3/19/98 to 11/15/27
DATED FEBRUARY 27, 1998, DUE MARCH 2, 1998 5.70%
Number of dealers or banks 4
Maximum amount with one dealer or bank 47.7%
Aggregate principal amount of agreements $1,624,312,000
Aggregate maturity amount of agreements $1,625,083,715
Aggregate market value of transferred assets $1,670,639,426
Coupon rates of transferred assets 0% to 12.50%
Maturity dates of transferred assets 3/2/98 to 9/1/37
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED FEBRUARY 5, 1998, DUE MARCH 4, 1998 5.50%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,825,000
Aggregate market value of transferred assets $206,712,668
Coupon rates of transferred assets 0% to 13.25%
Maturity dates of transferred assets 3/1/98 to 3/1/28
DATED FEBRUARY 19, 1998, DUE MARCH 4, 1998 5.52%
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 $300,598,000
Aggregate market value of transferred assets $309,010,757
Coupon rates of transferred assets 6.21% to 6.50%
Maturity dates of transferred assets 12/1/25 to 4/1/34
DATED FEBRUARY 5, 1998, DUE MARCH 9, 1998 5.50%
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 $100,488,889
Aggregate market value of transferred assets $103,353,439
Coupon rates of transferred assets 6.50% to 8%
Maturity dates of transferred assets 2/1/08 to 11/1/27
DATED FEBRUARY 12, 1998, DUE MARCH 11, 1998 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,829,500
Aggregate market value of transferred assets $206,007,171
Coupon rates of transferred assets 6.21% to 6.50%
Maturity dates of transferred assets 12/1/25 to 4/1/34
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED FEBRUARY 18, 1998, DUE MARCH 18, 1998 5.54%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,861,778
Aggregate market value of transferred assets $206,567,375
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 9/1/22 to 4/1/35
DATED FEBRUARY 3, 1998, DUE MARCH 25, 1998 5.53%
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 $151,152,083
Aggregate market value of transferred assets $155,635,119
Coupon rates of transferred assets 0%
Maturity dates of transferred assets 10/1/09 to 6/1/29
DATED JANUARY 7, 1998, DUE APRIL 7, 1998 5.54%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $202,770,000
Aggregate market value of transferred assets $206,007,171
Coupon rates of transferred assets 6.21% to 6.50%
Maturity dates of transferred assets 12/1/25 to 4/1/34
DATED JANUARY 16, 1998, DUE APRIL 20, 1998 5.50%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $40,000,000
Aggregate maturity amount of agreements $40,574,444
Aggregate market value of transferred assets $42,126,742
Coupon rates of transferred assets 0% to 6.50%
Maturity dates of transferred assets 8/1/26 to 2/1/28
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED FEBRUARY 26, 1998, DUE APRIL 20, 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 $201,634,167
Aggregate market value of transferred assets $206,000,001
Coupon rates of transferred assets 7% to 8.50%
Maturity dates of transferred assets 2/1/24 to 11/1/37
DATED FEBRUARY 3, 1998, DUE MAY 4, 1998 5.50%
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 $101,375,000
Aggregate market value of transferred assets $103,401,715
Coupon rates of transferred assets 0% to 7%
Maturity dates of transferred assets 11/1/27 to 2/1/28
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, Fidelity
Investments Money Management, Inc. (formerly FMR Texas, Inc.), a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the
fund's custodian and transfer agent whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of
the fund's expenses. During the period, the fund's expenses were
reduced by $448,012 under these arrangements.
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
Thomas D. Maher,
ASSISTANT VICE PRESIDENT
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
Thomas J. Simpson, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
FIDELITY
(REGISTERED TRADEMARK)
MONEY MARKET TRUST:
RETIREMENT MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 28, 1998
CONTENTS
SCHEDULE OF INVESTMENTS &
FINANCIAL STATEMENTS
INVESTMENTS 3 A COMPLETE LIST OF THE FUND'S INVESTMENTS.
FINANCIAL STATEMENTS 13 STATEMENTS OF ASSETS AND LIABILITIES,
OPERATIONS, AND CHANGES IN NET ASSETS,
AS WELL AS FINANCIAL HIGHLIGHTS.
NOTES 17 NOTES TO THE FINANCIAL STATEMENTS.
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, 1998 (UNAUDITED)
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
CERTIFICATES OF DEPOSIT - 38.8%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
DOMESTIC CERTIFICATES OF DEPOSIT - 2.7%
Chase Manhattan Bank (USA) Delaware
4/6/98 5.71% $ 35,000,000 $ 34,997,866
4/7/98 5.65 42,000,000 42,000,000
CoreStates Capital Corp.
3/4/98 5.56 (a) 8,000,000 8,000,000
3/31/98 5.59 (a) 10,000,000 9,999,584
Fleet National Bank
6/10/98 5.53 25,000,000 25,000,000
Mellon Bank, NA Pittsburgh
3/2/98 5.80 10,000,000 10,000,000
Morgan Guaranty Trust Co., NY
3/20/98 6.00 29,000,000 28,999,134
8/6/98 5.90 26,000,000 25,996,666
184,993,250
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 27.8%
ABN-AMRO Bank NV
2/2/99 5.54 25,000,000 24,990,921
Bank of Montreal, Canada
5/4/98 5.52 35,000,000 35,000,000
Bank of Nova Scotia
7/21/98 5.97 8,000,000 7,995,185
8/31/98 5.97 20,000,000 19,993,771
Bank of Scotland Treasury Services
5/19/98 5.53 15,000,000 14,999,675
Bank of Tokyo - Mitsubishi Ltd.
4/20/98 6.03 62,000,000 62,000,000
Banque Nationale de Paris
5/5/98 5.52 52,000,000 51,999,982
Barclays Bank, PLC
3/2/98 5.80 57,000,000 57,000,000
5/13/98 5.52 55,000,000 55,000,000
5/20/98 5.52 110,000,000 110,000,000
Bayerische Hypotheken-und Wechsel Bank
3/3/98 5.80 100,000,000 100,000,000
3/16/98 5.66 15,000,000 14,999,489
Bayerische Vereinsbank AG
5/4/98 5.66 30,000,000 30,000,000
2/2/99 5.59 48,000,000 48,006,028
Canadian Imperial Bank of Commerce
3/9/98 5.51 25,000,000 25,000,000
3/23/98 5.80 150,000,000 150,000,000
8/28/98 5.97 60,000,000 59,983,027
3/2/99 5.70 30,000,000 29,981,309
Credit Agricole Indosuez
3/10/98 5.80 35,000,000 35,000,000
5/20/98 5.52 25,000,000 25,000,000
2/26/99 5.70 15,000,000 14,994,296
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Den Danske Bank Group A/S
3/5/98 5.81% $ 15,000,000 $ 15,000,000
Deutsche Bank, AG
4/10/98 6.25 25,000,000 24,998,694
8/3/98 5.52 70,000,000 70,000,000
8/10/98 5.91 25,000,000 24,993,633
8/11/98 5.90 55,000,000 54,988,251
3/2/99 5.70 30,000,000 29,985,623
National Westminster Bank, PLC
4/6/98 5.52 17,000,000 17,000,140
6/23/98 6.00 60,000,000 59,984,058
8/10/98 6.00 8,675,000 8,669,666
9/25/98 5.88 11,000,000 10,994,556
2/26/99 5.70 25,000,000 24,990,494
3/2/99 5.70 30,000,000 29,985,623
Norddeutsche Landesbank Girozentrale
10/21/98 5.97 45,000,000 44,985,520
Rabobank Nederland, COOP Central
3/20/98 6.00 25,000,000 24,999,627
4/10/98 6.25 20,000,000 19,998,955
2/2/99 5.54 25,000,000 24,990,921
Royal Bank of Canada
3/3/98 5.82 25,000,000 24,999,974
8/7/98 5.90 27,000,000 26,996,624
8/13/98 6.00 10,000,000 9,997,624
2/10/99 5.60 25,000,000 24,984,084
2/26/99 5.63 40,000,000 39,975,266
Royal Bank of Scotland, PLC
6/15/98 5.85 8,000,000 8,000,000
Sanwa Bank Ltd. Japan
4/20/98 6.20 37,000,000 37,000,000
4/27/98 6.25 25,000,000 25,000,000
Societe Generale, France
3/4/98 5.81 40,000,000 40,000,000
3/9/98 5.81 25,000,000 25,000,000
3/9/98 5.85 30,000,000 30,000,000
4/14/98 5.75 35,000,000 35,000,000
8/4/98 5.53 10,000,000 10,000,000
8/24/98 5.55 55,000,000 55,000,000
Swiss Bank Corp.
8/28/98 5.97 30,000,000 29,992,928
1,880,455,944
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.4%
Bank of Nova Scotia
4/1/98 6.20 30,000,000 29,998,542
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
SAN FRANCISCO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.5%
Banque Nationale de Paris
3/9/98 5.51% $ 35,000,000 $ 35,000,005
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 7.4%
Abbey National Treasury Services, PLC
3/4/98 5.87 27,000,000 27,000,000
3/11/98 5.83 10,000,000 10,000,000
3/18/98 5.70 80,000,000 80,000,000
9/28/98 5.60 25,000,000 25,000,000
Banco Bilbao Vizcaya, SA
4/7/98 5.65 15,000,000 15,000,152
Banque Nationale de Paris
3/5/98 5.82 5,000,000 5,000,005
Barclays Bank, PLC
4/23/98 5.80 25,000,000 25,000,000
Bayerische Hypotheken-und Wechsel Bank
3/4/98 5.80 40,000,000 40,000,033
Bayerische Vereinsbank AG
3/16/98 5.72 25,000,000 25,000,295
National Westminster Bank, PLC
4/6/98 5.52 75,000,000 74,999,937
Norddeutsche Landesbank Girozentrale
3/16/98 5.73 6,000,000 6,000,024
Toronto-Dominion Bank
4/9/98 5.75 12,000,000 11,999,195
10/14/98 5.93 25,000,000 25,000,000
Union Bank of Switzerland
3/5/98 5.80 20,000,000 20,000,022
Westdeutsche Landesbank Girozentrale
5/5/98 5.52 20,000,000 20,000,356
6/4/98 5.52 45,000,000 45,001,166
7/6/98 5.53 20,000,000 20,000,000
Westpac Banking Corp.
3/9/98 5.81 25,000,000 25,000,099
500,001,284
TOTAL CERTIFICATES OF DEPOSIT 2,630,449,025
COMMERCIAL PAPER - 39.1%
ABN-AMRO North America, Inc.
3/10/98 5.81 15,000,000 14,978,531
AVCO Financial Services, Inc.
3/16/98 5.53 10,000,000 9,977,083
Abbey National North America
3/17/98 5.70 90,000,000 89,778,400
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
American General Finance Corp.
3/5/98 5.51% $ 25,000,000 $ 24,984,806
Aspen Funding Corp.
3/5/98 5.55 20,000,000 19,987,733
3/9/98 5.53 10,000,000 9,987,778
Asset Securitization Coop. Corp.
3/23/98 5.53 6,500,000 6,478,153
4/28/98 5.53 10,000,000 9,911,872
4/30/98 5.53 20,000,000 19,817,667
5/8/98 5.52 25,450,000 25,188,247
Associates Corp. of North America
3/11/98 5.53 25,000,000 24,961,806
3/18/98 5.81 25,000,000 24,932,354
3/20/98 5.83 20,000,000 19,939,306
5/11/98 5.53 5,000,000 4,946,158
5/18/98 5.53 20,000,000 19,763,400
5/19/98 5.53 10,000,000 9,880,183
5/20/98 5.53 30,000,000 29,636,000
BMW US Capital Corp.
3/10/98 5.53 10,385,000 10,370,721
5/26/98 5.65 30,000,000 29,603,683
Bank of New York, Inc.
3/16/98 5.53 10,000,000 9,977,083
Bank of Scotland Treasury Services
5/7/98 5.52 25,000,000 24,746,424
Bear Stearns Cos., Inc.
5/8/98 5.55 15,000,000 14,845,017
Bell Atlantic Financial Services, Inc.
3/11/98 5.53 30,000,000 29,954,166
Beneficial Corp.
3/18/98 5.55 15,000,000 14,960,971
CIESCO, L.P.
3/18/98 5.52 10,000,000 9,974,028
CIT Group, Inc.
5/26/98 5.65 15,000,000 14,801,842
Caisse des Depots et Consignations
3/16/98 5.52 10,000,000 9,977,083
Chrysler Financial Corp.
5/21/98 5.57 20,000,000 19,752,500
Citibank Credit Card Master Trust I (Dakota Certificate Program)
3/2/98 5.70 15,000,000 14,997,625
3/11/98 5.53 5,000,000 4,992,361
3/12/98 5.53 25,000,000 24,957,986
Commercial Credit Group, Inc.
3/4/98 5.50 25,000,000 24,988,604
3/16/98 5.53 10,000,000 9,977,083
4/13/98 5.54 15,000,000 14,901,817
Daimler-Benz North America Corp.
5/7/98 5.52 10,000,000 9,898,476
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Den Danske Corp., Inc.
4/9/98 5.65% $ 10,000,000 $ 9,939,713
Deutsche Bank Financial, Inc.
3/5/98 5.52 115,000,000 114,926,533
Diageo Capital, PLC
3/4/98 5.53 10,000,000 9,995,408
5/28/98 5.58 50,000,000 49,327,778
Dresdner U.S. Finance, Inc.
3/2/98 5.53 50,000,000 49,992,347
Eiger Capital Corp.
3/9/98 5.52 9,186,000 9,174,773
3/16/98 5.55 10,000,000 9,976,958
3/19/98 5.54 21,000,000 20,942,040
3/24/98 5.53 15,000,000 14,947,292
Enterprise Funding Corp.
3/18/98 5.56 7,130,000 7,111,414
3/19/98 5.63 5,000,000 4,986,075
3/30/98 5.87 25,000,000 24,883,597
4/13/98 5.55 5,000,000 4,967,153
5/4/98 5.54 11,000,000 10,893,227
5/12/98 5.54 11,419,000 11,294,076
Fina Oil and Chemical Company
3/5/98 5.60 5,000,000 4,996,906
3/19/98 5.53 5,000,000 4,986,225
Ford Motor Credit Co.
3/4/98 5.80 75,000,000 74,964,250
4/10/98 5.53 110,000,000 109,330,222
5/6/98 5.53 90,000,000 89,100,750
5/11/98 5.53 20,000,000 19,784,633
5/12/98 5.53 40,000,000 39,563,200
GTE Corp.
3/3/98 5.63 6,000,000 5,998,133
3/5/98 5.63 4,000,000 3,997,511
3/16/98 5.58 2,000,000 1,995,367
3/19/98 5.60 5,000,000 4,986,075
3/24/98 5.60 4,000,000 3,985,766
General Electric Capital Corp.
3/16/98 5.70 50,000,000 49,884,583
3/30/98 5.71 50,000,000 49,776,458
4/7/98 5.79 50,000,000 49,712,222
6/3/98 5.54 75,000,000 73,932,708
8/11/98 5.54 100,000,000 97,559,528
General Electric Capital Services, Inc.
3/27/98 5.82 20,000,000 19,948,056
General Electric Co.
3/18/98 5.53 20,000,000 19,917,522
General Motors Acceptance Corp.
3/6/98 5.87 25,000,000 24,979,861
3/9/98 5.76 50,000,000 49,937,889
5/27/98 5.57 55,000,000 54,271,617
5/28/98 5.57 55,000,000 54,263,244
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Generale de Banque, SA
4/7/98 5.72% $ 22,000,000 $ 21,874,282
Grand Metropolitan Capital Corp.
4/6/98 5.66 15,000,000 14,917,500
Household Finance Corp.
3/4/98 5.53 10,000,000 9,995,408
Kitty Hawk Funding Corp.
3/2/98 5.83 5,000,000 4,999,201
Merrill Lynch & Co., Inc.
3/9/98 5.54 10,000,000 9,987,756
3/16/98 5.73 19,000,000 18,955,904
4/20/98 5.55 20,000,000 19,847,500
Morgan Stanley, Dean Witter, Discover & Co.
3/31/98 5.85 20,000,000 19,904,167
4/16/98 5.54 65,000,000 64,544,025
National Bank of Canada
3/2/98 5.83 5,000,000 4,999,201
Nationwide Building Society
3/9/98 5.81 35,000,000 34,955,433
3/10/98 5.82 40,000,000 39,942,650
4/7/98 5.68 15,000,000 14,913,667
New Center Asset Trust
3/2/98 5.53 30,000,000 29,995,408
3/19/98 5.83 15,000,000 14,956,875
5/15/98 5.54 10,000,000 9,886,667
5/18/98 5.55 45,000,000 44,466,675
Norfolk Southern Corp.
3/4/98 5.68 2,000,000 1,999,058
3/18/98 5.68 3,500,000 3,490,662
3/19/98 5.77 5,000,000 4,985,625
4/1/98 5.68 12,000,000 11,941,617
Norwest Corp.
3/2/98 5.68 20,000,000 19,996,844
Preferred Receivables Funding Corp.
3/2/98 5.54 10,000,000 9,998,467
3/12/98 5.53 10,000,000 9,983,194
3/17/98 5.53 10,400,000 10,374,578
3/19/98 5.56 11,875,000 11,842,225
3/24/98 5.53 10,000,000 9,964,861
4/6/98 5.54 25,000,000 24,862,500
4/28/98 5.55 10,000,000 9,911,550
Rabobank U.S.A. Financial Corp.
4/2/98 5.70 17,000,000 16,916,284
Sears Roebuck Acceptance Corp.
3/3/98 5.84 15,000,000 14,995,200
3/18/98 5.54 20,000,000 19,948,056
3/24/98 5.55 5,000,000 4,982,367
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Textron, Inc.
3/3/98 5.65% $ 5,000,000 $ 4,998,439
3/6/98 5.63 3,000,000 2,997,667
4/6/98 5.65 10,000,000 9,944,000
4/9/98 5.65 3,000,000 2,981,800
Three Rivers Funding Corp.
3/18/98 5.52 12,000,000 11,968,833
5/18/98 5.55 10,140,000 10,019,824
Transamerica Finance Corp.
3/27/98 5.52 10,000,000 9,960,422
Triple A One Funding Corp.
3/4/98 5.52 10,000,000 9,995,417
3/6/98 5.62 4,000,000 3,996,906
3/11/98 5.53 16,000,000 15,975,556
UBS Finance (Delaware), Inc.
3/2/98 5.68 25,000,000 24,996,056
3/9/98 5.52 35,000,000 34,957,222
Unifunding, Inc.
3/9/98 5.53 5,000,000 4,993,889
3/9/98 5.82 10,000,000 9,987,267
3/23/98 5.53 5,000,000 4,983,194
TOTAL COMMERCIAL PAPER 2,648,149,956
FEDERAL AGENCIES - 1.3%
FANNIE MAE - AGENCY COUPONS (A) - 0.7%
3/13/98 5.84 50,000,000 49,993,182
FREDDIE MAC - DISCOUNT NOTES - 0.6%
3/2/98 5.64 39,525,000 39,518,863
TOTAL FEDERAL AGENCIES 89,512,045
BANK NOTES - 6.1%
Bank of New York, NA
3/3/98 5.85 30,000,000 29,999,921
3/17/98 6.00 10,000,000 9,999,832
BankOne, Columbus
3/3/98 5.68 (a) 46,000,000 45,991,174
Comerica Bank, Detroit
3/17/98 5.59 (a) 15,000,000 14,996,091
3/27/98 6.20 25,000,000 24,996,602
CoreStates Bank
11/13/98 5.59 10,000,000 10,000,000
BANK NOTES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
First Bank NA - Minnesota
3/18/98 5.58% (a) $ 10,000,000 $ 9,997,112
Key Bank National Association
3/2/98 5.61 (a) 19,000,000 18,993,628
3/2/98 5.81 (a) 15,000,000 14,993,157
3/23/98 5.58 (a) 10,000,000 9,995,558
3/24/98 5.58 (a) 26,000,000 25,993,971
3/30/98 5.58 (a) 25,000,000 24,991,603
Morgan Guaranty Trust Co., NY
8/31/98 5.85 19,000,000 19,004,416
National City Bank - Kentucky
2/5/99 5.58 (a) 25,000,000 24,986,297
National City Bank - Pennsylvania
3/3/98 5.59 18,000,000 17,995,944
Northern Trust Co., Chicago
3/2/98 5.58 (a) 14,000,000 13,996,815
PNC Bank, NA
3/2/98 5.83 (a) 14,000,000 13,995,767
3/27/98 5.59 (a) 18,000,000 17,997,496
4/16/98 5.58 (a) 40,000,000 39,979,560
SouthTrust Bank - Alabama
3/11/98 5.59 (a) 11,000,000 10,996,597
US Bank, NA
3/18/98 5.57 (a) 11,000,000 10,995,833
TOTAL BANK NOTES 410,897,374
MASTER NOTES (A) - 2.5%
Goldman Sachs Group, L.P. (c)
3/13/98 5.91 58,000,000 58,000,000
5/4/98 5.63 12,000,000 12,000,000
J.P. Morgan Securities, Inc.
3/6/98 5.60 92,000,000 92,000,000
Suntrust Banks, Inc.
3/6/98 5.64 10,000,000 10,000,000
TOTAL MASTER NOTES 172,000,000
MEDIUM-TERM NOTES (A) - 3.1%
Beneficial Corp.
3/25/98 5.59 10,000,000 9,997,165
4/11/98 5.55 12,000,000 11,998,486
Merrill Lynch & Co., Inc.
3/2/98 5.74 26,000,000 25,998,486
3/4/98 5.58 11,000,000 10,999,620
MEDIUM-TERM NOTES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Morgan Stanley, Dean Witter, Discover & Co.
3/2/98 5.89% $ 35,000,000 $ 35,000,000
New York Life Insurance Co.
3/23/98 5.89 30,000,000 30,000,000
Norwest Corp.
4/22/98 5.67 31,000,000 31,000,000
Pacific Mutual Life Insurance Co. (b)
3/9/98 5.95 25,000,000 25,000,000
Transamerica Life Insurance and Annuity Co.
3/2/98 (c) 5.65 10,000,000 10,000,000
3/16/98 5.92 16,000,000 16,000,000
TOTAL MEDIUM-TERM NOTES 205,993,757
SHORT-TERM NOTES (A) - 5.9%
Capital One Funding Corp. (1994-C)
3/6/98 5.57 7,305,000 7,305,000
Capital One Funding Corp. (1994-E)
3/6/98 5.57 8,226,000 8,226,000
Capital One Funding Corp. (1995-D)
3/6/98 5.57 11,285,000 11,285,000
Capital One Funding Corp. (1995-E)
3/6/98 5.57 9,939,000 9,939,000
Capital One Funding Corp. (1997-F)
3/6/98 5.57 7,000,000 7,000,000
Liquid Asset Backed Securities Trust (1996-1) (b)
10/15/98 5.61 28,000,000 28,000,000
Liquid Asset Backed Securities Trust (1996-2) (b)
3/2/98 5.61 35,000,000 35,000,000
Liquid Asset Backed Securities Trust (1997-5) (b)
3/17/98 5.61 57,000,000 57,000,000
SMM Trust (1997-I) (b)
3/30/98 5.63 31,000,000 31,000,000
SMM Trust (1997-P) (b)
3/16/98 5.63 20,000,000 20,000,000
SMM Trust (1997-X) (b)
3/12/98 5.63 53,000,000 53,000,000
Strategic Money Market Trust (1997-A) (b)
3/23/98 5.91 82,000,000 82,000,000
Strategic Money Market Trust (1998-B) (b)
3/5/98 5.63 50,000,000 50,000,000
TOTAL SHORT-TERM NOTES 399,755,000
TIME DEPOSITS - 1.8%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Sumitomo Bank, Ltd. Japan
3/2/98 5.97% $ 38,000,000 $ 38,000,000
3/13/98 5.84 23,000,000 23,000,000
4/3/98 6.25 39,000,000 39,000,000
Toronto-Dominion Bank
3/2/98 5.72 20,000,000 20,000,000
TOTAL TIME DEPOSITS 120,000,000
REPURCHASE AGREEMENT - 1.4%
MATURITY
AMOUNT
In a joint trading account (Note 2)
(U.S. Government Obligations)
dated 2/27/98 due 3/2/98
At 5.70% $ 95,653,424 95,608,000
TOTAL INVESTMENTS - 100% $6,772,365,157
Total Cost for Income Tax Purposes $ 6,772,365,157
LEGEND
6. 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.
7. 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 $381,000,000 or
5.7% of net assets.
8. 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
Goldman Sachs
Group, L.P. 6/11/97 $ 58,000,000
Goldman Sachs
Group, L.P. 8/5/97 $12,000,000
Transamerica Life
Insurance and
Annuity Co. 5/7/97 $ 10,000,000
INCOME TAX INFORMATION
At August 31, 1997, the fund had a capital loss carryforward of
approximately $394,000 of which $278,000, $42,000 and $74,000 will
expire on August 31, 2002, 2004, and 2005, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
FEBRUARY 28, 1998 (UNAUDITED)
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE $ 6,772,365,157
AGREEMENTS OF $95,608,000) - SEE
ACCOMPANYING SCHEDULE
RECEIVABLE FOR INVESTMENTS SOLD 19,990,583
INTEREST RECEIVABLE 52,517,425
TOTAL ASSETS 6,844,873,165
LIABILITIES
PAYABLE TO CUSTODIAN BANK $ 522,796
PAYABLE FOR INVESTMENTS PURCHASED 128,952,554
SHARE TRANSACTIONS IN PROCESS 16,419,067
DISTRIBUTIONS PAYABLE 63,766
ACCRUED MANAGEMENT FEE 2,157,318
OTHER PAYABLES AND ACCRUED EXPENSES 42,654
TOTAL LIABILITIES 148,158,155
NET ASSETS $ 6,696,715,010
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 6,697,111,137
ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS (396,127)
NET ASSETS, FOR 6,697,039,127 SHARES OUTSTANDING $ 6,696,715,010
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $1.00
SHARE ($6,696,715,010 (DIVIDED BY) 6,697,039,127 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED FEBRUARY 28, 1998 (UNAUDITED)
INTEREST INCOME $ 182,088,518
EXPENSES
MANAGEMENT FEE $ 13,247,858
NON-INTERESTED TRUSTEES' COMPENSATION 11,401
TOTAL EXPENSES BEFORE REDUCTIONS 13,259,259
EXPENSE REDUCTIONS (965,515) 12,293,744
NET INTEREST INCOME 169,794,774
NET REALIZED GAIN (LOSS) ON INVESTMENTS (2,337)
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 169,792,437
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
FEBRUARY 28, 1998 AUGUST 31,
(UNAUDITED) 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 169,794,774 $ 309,818,664
NET INTEREST INCOME
NET REALIZED GAIN (LOSS) (2,337) (73,225)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 169,792,437 309,745,439
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (169,794,774) (309,818,664)
SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 4,836,903,625 7,484,258,226
PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 169,336,701 309,818,664
COST OF SHARES REDEEMED (4,536,363,871) (6,894,419,990)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 469,876,455 899,656,900
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 469,874,118 899,583,675
NET ASSETS
BEGINNING OF PERIOD 6,226,840,892 5,327,257,217
END OF PERIOD $ 6,696,715,010 $ 6,226,840,892
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED YEARS ENDED AUGUST 31,
FEBRUARY 28, 1998
(UNAUDITED) 1997 1996 1995 1994 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
BEGINNING OF
PERIOD
INCOME FROM .027 .052 .053 .054 .034 .030
INVESTMENT
OPERATIONS
NET INTEREST
INCOME
LESS DISTRIBUTIONS
FROM NET INTEREST (.027) (.052) (.053) (.054) (.034) (.030)
INCOME
NET ASSET VALUE, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
END OF PERIOD
TOTAL RETURN B, C 2.70% 5.37% 5.40% 5.57% 3.41% 3.09%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END $ 6,697 $ 6,227 $ 5,327 $ 4,350 $ 2,800 $ 1,706
OF PERIOD
(IN MILLIONS)
RATIO OF EXPENSES .42% A .42% .37% D .42% .42% .42%
TO AVERAGE
NET ASSETS
RATIO OF EXPENSES .39% A, E .39% E .34% E .42% .42% .42%
TO AVERAGE NET
ASSETS AFTER
EXPENSE
REDUCTIONS
RATIO OF NET INTEREST 5.38% A 5.21% 5.31% 5.49% 3.44% 3.05%
INCOME TO
AVERAGE
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 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.
E 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 February 28, 1998 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Retirement Money Market Portfolio (the fund) is a fund of Fidelity
Money Market Trust (the trust) and is authorized to issue an unlimited
number of shares. The trust is registered under the Investment Company
Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Delaware business trust. The
financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements. The
following summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost
and thereafter assume a constant amortization to maturity of any
discount or premium.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
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
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. With
respect to purchase commitments, the fund identifies securities as
segregated in its custodial records with a value at least equal to the
amount of the commitment. The payables and receivables associated with
the purchases and sales of when-issued securities having the same
settlement date and broker are offset. When-issued securities that
have been purchased from and sold to different brokers are reflected
as both payables and receivables in the statement of assets and
liabilities under the caption "Delayed delivery." Losses may arise due
to changes in the market value of the underlying securities, if the
counterparty does not perform under the contract, or if the issuer
does not issue the securities due to political, economic, or other
factors.
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, restricted securities (excluding 144A
issues) amounted to $80,000,000 or 1.2% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .42% of the fund's average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, Inc. (formerly 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 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 $965,515 under these arrangements.
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
Thomas D. Maher,
ASSISTANT VICE PRESIDENT
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
Thomas J. Simpson, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
* INDEPENDENT TRUSTEES
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
