INVESTMENTS AUGUST 31, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FEDERAL AGENCIES - 77.7%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FANNIE MAE - 24.3%
Agency Coupons - 15.6%
9/1/99 5.37% (a) $ 63,000,000 $ 62,970,480
9/2/99 5.00 (a) 40,000,000 39,975,213
9/10/99 5.02 (a) 80,000,000 79,966,951
9/24/99 5.14 (a) 79,000,000 78,969,247
10/14/99 5.11 (a) 160,000,000 159,909,923
11/4/99 5.18 (a) 83,000,000 82,954,010
2/4/00 4.85 33,000,000 32,983,780
2/22/00 4.93 32,000,000 31,998,475
5/5/00 5.04 30,000,000 29,975,502
6/7/00 5.25 40,000,000 39,968,175
6/9/00 5.38 32,000,000 31,966,961
671,638,717
Discount Notes - 8.7%
9/2/99 5.07 55,000,000 54,992,315
9/13/99 4.89 29,566,000 29,518,990
9/17/99 4.87 32,000,000 31,932,444
9/24/99 4.82 12,388,000 12,350,643
10/4/99 5.13 34,000,000 33,841,985
10/5/99 5.13 56,600,000 56,328,980
11/5/99 4.87 31,000,000 30,734,132
11/12/99 4.87 48,500,000 48,039,250
2/11/00 5.63 41,000,000 39,984,555
7/28/00 5.73 42,000,000 39,906,977
377,630,271
FEDERAL HOME LOAN BANK - 20.5%
Agency Coupons - 18.7%
9/1/99 4.87 (a) 169,000,000 168,968,931
9/1/99 5.37 (a) 99,000,000 98,992,873
9/1/99 5.52 (a) 74,000,000 73,965,771
9/8/99 5.03 (a) 13,000,000 12,999,820
10/12/99 5.11 (a) 66,000,000 65,983,531
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FEDERAL HOME LOAN BANK -
CONTINUED
Agency Coupons - continued
11/12/99 5.22% (a) $ 31,000,000 $ 30,981,713
2/11/00 4.92 33,000,000 32,987,179
2/16/00 4.90 31,000,000 31,000,000
3/1/00 5.00 62,000,000 61,992,755
3/3/00 5.06 32,000,000 31,986,808
3/8/00 5.17 40,000,000 39,980,584
4/5/00 5.03 21,190,000 21,176,683
5/19/00 5.13 65,000,000 64,969,639
6/14/00 5.47 22,000,000 21,976,883
9/7/00 5.90 16,000,000 15,996,480
9/7/00 5.92 32,000,000 31,986,400
805,946,050
Discount Notes - 1.8%
11/3/99 5.31 79,000,000 78,272,805
FREDDIE MAC - 32.4%
Discount Notes - 32.4%
9/1/99 5.02 53,000,000 53,000,000
9/2/99 4.91 60,000,000 59,992,017
9/2/99 4.96 51,000,000 50,993,058
9/2/99 5.07 65,000,000 64,990,918
9/3/99 4.81 18,000,000 17,995,280
9/3/99 4.83 30,695,000 30,686,926
9/3/99 5.12 195,000,000 194,945,076
9/7/99 5.08 128,000,000 127,892,693
9/8/99 4.81 14,000,000 13,987,151
9/8/99 4.92 7,000,000 6,993,467
9/9/99 4.86 50,000,000 49,947,222
9/10/99 4.84 85,000,000 84,899,275
9/17/99 4.82 50,000,000 49,895,111
9/24/99 4.80 40,000,000 39,879,889
9/24/99 4.83 55,000,000 54,833,617
9/27/99 4.86 75,000,000 74,742,979
10/4/99 5.14 90,000,000 89,580,900
10/4/99 5.15 65,000,000 64,697,317
10/12/99 4.83 50,000,000 49,731,792
6/2/00 5.40 40,000,000 38,435,556
6/2/00 5.46 39,000,000 37,456,792
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FREDDIE MAC - CONTINUED
Discount Notes - continued
6/13/00 5.51% $ 32,000,000 $ 30,672,960
6/13/00 5.53 25,000,000 23,956,299
6/15/00 5.45 32,000,000 30,677,760
6/23/00 5.50 34,000,000 32,537,924
7/5/00 5.61 22,060,000 21,055,927
1,394,477,906
STUDENT LOAN MARKETING
ASSOCIATION - 0.5%
Agency Coupons - 0.5%
9/7/99 5.67 (a) 20,000,000 19,990,792
TOTAL FEDERAL AGENCIES 3,347,956,541
</TABLE>
REPURCHASE AGREEMENTS - 22.3%
MATURITY AMOUNT
In a joint trading account
(U.S. Government
Obligations) dated:
6/24/99 due 9/22/99 At 5.15% $ 48,618,000 48,000,000
7/9/99 due 9/1/99 At 5.09% 50,381,750 50,000,000
8/16/99 due 9/15/99 At 5.25% 63,275,625 63,000,000
8/19/99 due 9/2/99 At 5.17% 94,188,992 94,000,000
8/27/99 due 9/3/99 At 5.31% 48,049,560 48,000,000
8/31/99 due 9/1/99 At 5.51% 658,782,802 658,682,000
TOTAL REPURCHASE AGREEMENTS 961,682,000
TOTAL INVESTMENT IN $ 4,309,638,541
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 4,309,638,541
LEGEND
(a) 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, 1999, the fund had a capital loss carryforward of
approximately $223,000 of which $116,000, $105,000 and $2,000 will
expire on August 31, 2002, 2003 and 2004, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1999
ASSETS
Investment in securities, at $ 4,309,638,541
value (including repurchase
agreements of $961,682,000)
- - See accompanying schedule
Receivable for fund shares 48,190,307
sold
Interest receivable 14,221,745
TOTAL ASSETS 4,372,050,593
LIABILITIES
Payable to custodian bank $ 465
Payable for investments 126,255,685
purchased
Payable for fund shares 45,304,579
redeemed
Distributions payable 62,028
Accrued management fee 1,488,286
Other payables and accrued 15,015
expenses
TOTAL LIABILITIES 173,126,058
NET ASSETS $ 4,198,924,535
Net Assets consist of:
Paid in capital $ 4,199,180,712
Accumulated net realized gain (256,177)
(loss) on investments
NET ASSETS, for 4,199,082,912 $ 4,198,924,535
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($4,198,924,535
(divided by) 4,199,082,912
shares)
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 1999
INTEREST INCOME $ 198,688,533
EXPENSES
Management fee $ 16,202,480
Non-interested trustees' 12,844
compensation
Total expenses before 16,215,324
reductions
Expense reductions (993,455) 15,221,869
NET INTEREST INCOME 183,466,664
NET REALIZED GAIN (LOSS) ON 35,419
INVESTMENTS
NET INCREASE IN NET ASSETS $ 183,502,083
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1999 YEAR ENDED AUGUST 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 183,466,664 $ 160,122,292
Net realized gain (loss) 35,419 (13,200)
NET INCREASE (DECREASE) IN 183,502,083 160,109,092
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (183,466,664) (160,122,292)
from net interest income
Share transactions at net 6,653,598,429 4,216,554,049
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 183,356,937 159,999,327
distributions from net
interest income
Cost of shares redeemed (6,040,103,635) (3,874,344,275)
NET INCREASE (DECREASE) IN 796,851,731 502,209,101
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 796,887,150 502,195,901
IN NET ASSETS
NET ASSETS
Beginning of period 3,402,037,385 2,899,841,484
End of period $ 4,198,924,535 $ 3,402,037,385
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED AUGUST 31, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .048 .053 .052 .052 .053
Operations Net interest
income
Less Distributions
From net interest income (.048) (.053) (.052) (.052) (.053)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 4.86% 5.41% 5.31% 5.36% 5.46%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 4,199 $ 3,402 $ 2,900 $ 2,523 $ 2,270
(in millions)
Ratio of expenses to average .42% .42% .42% .37% B .42%
net assets
Ratio of expenses to average .39% C .39% C .39% C .34% C .42%
net assets after expense
reductions
Ratio of net interest income 4.75% 5.28% 5.16% 5.27% 5.38%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
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.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1999
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 SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. With respect to purchase commitments, the fund identifies
securities
2. OPERATING POLICIES - CONTINUED
WHEN-ISSUED SECURITIES - CONTINUED
as segregated in its records with a value at least equal to the amount
of the commitment. 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.
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 JUNE 24, 1999, DUE SEPTEMBER 22, 1999 5.15%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $75,000,000
Aggregate maturity amount of agreements $75,965,625
Aggregate market value of transferred assets $77,522,830
Coupon rates of transferred assets 5.50% to 8.00%
Maturity dates of transferred assets 2/1/13 to 8/1/29
DATED JULY 9, 1999, DUE SEPTEMBER 1, 1999 5.09%
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 $151,145,250
Aggregate market value of transferred assets $153,000,000
Coupon rates of transferred assets 6.00% to 8.50%
Maturity dates of transferred assets 10/1/08 to 7/1/29
DATED AUGUST 16, 1999, DUE SEPTEMBER 15, 1999 5.25%
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 $100,437,500
Aggregate market value of transferred assets $103,020,463
Coupon rates of transferred assets 0.00%
Maturity dates of transferred assets 2/1/24 to 9/1/34
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED AUGUST 19, 1999, DUE SEPTEMBER 2, 1999 5.17%
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 $300,603,167
Aggregate market value of transferred assets $307,125,145
Coupon rates of transferred assets 5.74 to 6.82%
Maturity dates of transferred assets 9/1/21 to 9/1/37
DATED AUGUST 27, 1999, DUE SEPTEMBER 3, 1999 5.31%
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 $150,154,875
Aggregate market value of transferred assets $153,562,573
Coupon rates of transferred assets 5.74 to 6.82%
Maturity dates of transferred assets 9/1/21 to 09/1/37
DATED AUGUST 31, 1999, DUE SEPTEMBER 1, 1999 5.51%
Number of dealers or banks 11
Maximum amount with one dealer or bank 21.1%
Aggregate principal amount of agreements $3,258,954,000
Aggregate maturity amount of agreements $3,259,452,735
Aggregate market value of transferred assets $3,334,096,605
Coupon rates of transferred assets 0.00% to 15.00%
Maturity dates of transferred assets 9/1/99 to 11/1/38
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. The
management fee paid to FMR by the fund is reduced by an amount equal
to the fees and expenses paid by the fund to the non-interested
Trustees.
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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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.
MONEY MARKET INSURANCE. Pursuant to an Exemptive Order issued by the
SEC, the fund, along with other money market funds advised by FMR or
its affiliates, has entered into insurance agreements with FIDFUNDS
Mutual Limited (FIDFUNDS), an affiliated mutual insurance company,
effective January 1, 1999. FIDFUNDS provides limited coverage for
certain loss events including issuer default as to payment of
principal or interest and bankruptcy or insolvency of a credit
enhancement provider. The insurance does not cover losses resulting
from changes in interest rates, ratings downgrades or other market
conditions. The fund may be subject to a special assessment of up to
approximately 2.5 times the fund's annual gross premium if covered
losses exceed certain levels. During the period, FMR has borne the
cost of the fund's premium payable to FIDFUNDS.
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 $993,455 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, 1999, 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, 1999 by
correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 7, 1999
DISTRIBUTIONS
A total of 18.44% 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 2000 of amounts for use
in preparing 1999 income tax returns.
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
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 A. Litterst, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
Stanley N. Griffith,
ASSISTANT VICE PRESIDENT
John H. Costello, 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 *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
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
RGM-PRO1099 85644
1.700907.102
(Fidelity Logo Graphic)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
INVESTMENTS AUGUST 31, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 32.5%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
DOMESTIC CERTIFICATES OF
DEPOSIT - 1.0%
First Union National Bank,
North Carolina
11/20/99 5.55% (c) $ 75,000,000 $ 75,000,000
Fleet National Bank
11/3/99 5.34 (c) 33,000,000 32,983,173
107,983,173
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - 9.5%
Abbey National Treasury
Services PLC
9/24/99 5.15 20,000,000 20,000,000
9/27/99 5.20 50,000,000 50,000,000
12/17/99 5.30 90,000,000 90,000,000
ABN-AMRO Bank NV
9/16/99 5.34 50,000,000 49,997,456
10/12/99 4.92 60,000,000 60,000,000
Barclays Bank PLC
9/7/99 4.93 10,000,000 10,000,104
9/7/99 5.03 100,000,000 100,000,000
9/7/99 5.04 25,000,000 25,000,000
7/28/00 5.80 41,000,000 41,000,000
Credit Agricole Indosuez
10/12/99 4.93 95,000,000 95,001,897
12/2/99 5.14 25,000,000 25,000,934
Halifax PLC
9/1/99 5.00 30,000,000 30,000,000
11/8/99 4.95 75,000,000 75,000,000
11/17/99 4.95 70,000,000 70,000,000
12/13/99 5.00 100,000,000 100,000,000
National Australia Bank Ltd.
11/8/99 4.96 25,000,000 25,000,000
Northern Rock PLC
9/7/99 5.00 20,000,000 19,999,711
Westdeutsche Landesbank
Girozentrale
9/9/99 5.19 100,000,000 100,000,000
986,000,102
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS - 22.0%
Bank of Scotland Treasury
Services
9/2/99 5.10 (c) 45,000,000 44,988,750
Banque Nationale de Paris
8/2/00 5.85 40,000,000 39,982,381
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS -
CONTINUED
Barclays Bank PLC
9/1/99 5.38% (c) $ 35,000,000 $ 34,987,312
9/1/99 5.39 (c) 25,000,000 24,989,904
9/8/99 5.17 50,000,000 50,000,000
3/1/00 5.30 45,000,000 44,987,048
6/14/00 5.66 75,000,000 74,971,731
Bayerische Hypo-und
Vereinsbank AG
9/27/99 5.26 (c) 70,000,000 69,968,892
Canadian Imperial Bank of
Commerce
9/15/99 5.30 25,000,000 24,998,288
2/23/00 5.17 30,000,000 29,993,072
Commerzbank AG
9/1/99 5.03 50,000,000 50,000,000
Credit Agricole Indosuez
3/1/00 5.22 50,000,000 49,992,799
Credit Communale de Belgique
9/14/99 5.09 50,000,000 50,000,000
12/29/99 5.40 30,000,000 30,000,000
Den Danske Bank Group AS
9/10/99 5.13 (c) 25,000,000 24,991,485
10/21/99 5.13 (c) 50,000,000 49,978,165
Deutsche Bank AG
9/1/99 5.39 (c) 100,000,000 99,958,361
9/28/99 5.30 125,000,000 125,000,000
2/10/00 5.11 30,000,000 29,994,867
2/16/00 5.12 60,000,000 59,986,691
Dresdner Bank AG
9/13/99 4.90 50,000,000 50,000,000
9/23/99 5.29 (c) 50,000,000 49,982,590
Landesbank Hessen-Thuringen
3/1/00 5.40 25,000,000 24,966,209
Lloyds Bank PLC
9/20/99 4.90 65,000,000 65,000,336
National Westminster Bank PLC
9/2/99 5.02 50,000,000 50,000,027
9/2/99 5.03 40,000,000 40,000,000
9/3/99 5.02 5,000,000 5,000,000
3/15/00 5.15 25,000,000 24,989,665
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS -
CONTINUED
Norddeutsche Landesbank
Girozentrale
2/10/00 5.10% $ 20,000,000 $ 19,996,577
RaboBank Nederland Coop.
Central
9/2/99 5.00 35,000,000 35,000,000
6/5/00 5.54 75,000,000 74,972,594
7/5/00 5.80 50,000,000 49,981,830
7/12/00 5.75 65,000,000 64,973,133
Royal Bank of Canada
9/1/99 5.39 (c) 40,000,000 39,985,138
2/18/00 5.15 35,000,000 34,994,502
2/28/00 5.26 20,000,000 19,995,729
6/5/00 5.55 25,000,000 24,992,692
Societe Generale, France
9/20/99 5.27 (c) 50,000,000 49,979,360
10/4/99 5.25 50,000,000 50,000,000
12/6/99 5.21 85,000,000 85,000,000
Svenska Handelsbanken AB
9/27/99 5.30 150,000,000 150,000,000
6/12/00 5.60 50,000,000 49,985,022
Toronto Dominion Bank
2/18/00 5.15 66,000,000 65,989,632
UBS AG
5/18/00 5.35 30,000,000 29,987,671
6/2/00 5.52 30,000,000 29,991,320
Westdeutsche Landesbank
Girozentrale
9/7/99 5.18 100,000,000 100,000,000
2,295,533,773
TOTAL CERTIFICATES OF DEPOSIT 3,389,517,048
COMMERCIAL PAPER - 45.5%
Abbey National North America
12/6/99 5.20 65,000,000 64,121,200
ABN-AMRO North America, Inc.
12/6/99 5.20 24,000,000 23,675,840
Aspen Funding Corp.
10/14/99 5.39 25,000,000 24,840,243
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Asset Securitization Coop.
Corp.
9/10/99 5.26% (c) $ 65,000,000 $ 65,000,000
9/20/99 5.05 (c) 55,000,000 55,000,000
9/20/99 5.30 50,000,000 49,860,667
10/8/99 5.26 (c) 40,000,000 39,996,505
Associates First Capital Corp.
12/14/99 5.39 25,000,000 24,620,833
Baker Hughes, Inc.
9/15/99 5.19 2,000,000 1,996,002
Bank of Scotland Treasury
Services
9/9/99 5.27 45,000,000 44,947,800
Bear Stearns Companies, Inc.
9/9/99 5.11 25,000,000 24,971,944
2/23/00 5.72 35,000,000 34,058,281
Bradford & Bingley Building
Society
10/6/99 5.25 25,000,000 24,873,976
Centric Capital Corp.
9/20/99 5.33 10,000,000 9,971,975
9/24/99 5.32 23,000,000 22,922,119
11/15/99 5.47 29,750,000 29,415,313
CIESCO L.P.
9/22/99 5.29 25,000,000 24,923,146
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
9/2/99 5.19 25,000,000 24,996,410
9/8/99 5.22 33,000,000 32,966,633
9/8/99 5.24 25,000,000 24,974,625
9/13/99 5.16 41,000,000 40,930,300
9/22/99 5.22 32,000,000 31,903,867
10/12/99 5.25 14,000,000 13,917,408
10/18/99 5.26 45,000,000 44,695,675
ConAgra, Inc.
9/2/99 5.32 20,000,000 19,997,056
9/3/99 5.40 8,000,000 7,997,604
9/8/99 5.40 25,000,000 24,973,799
9/9/99 5.39 12,000,000 11,985,653
9/10/99 5.41 11,000,000 10,985,150
10/4/99 5.49 12,000,000 11,939,940
Conoco, Inc.
9/23/99 5.42 9,000,000 8,970,300
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
CXC, Inc.
9/9/99 5.20% $ 30,000,000 $ 29,965,667
9/20/99 5.37 (c) 60,000,000 59,993,824
Daimler-Chrysler North
America Holding Corp.
9/1/99 5.02 16,000,000 16,000,000
9/8/99 5.23 8,000,000 7,991,896
9/9/99 5.23 13,000,000 12,984,949
9/13/99 5.20 30,000,000 29,948,500
9/15/99 5.20 15,000,000 14,969,958
10/13/99 5.26 28,000,000 27,830,460
10/19/99 5.25 15,000,000 14,896,400
2/9/00 5.90 25,000,000 24,359,354
2/16/00 5.86 15,000,000 14,602,400
Delaware Funding Corp.
9/10/99 5.25 5,386,000 5,378,958
Deutsche Bank Financial, Inc.
9/27/99 5.33 100,000,000 99,617,222
12/8/99 5.21 50,000,000 49,309,917
Diageo Capital PLC
9/2/99 4.90 15,000,000 14,997,992
Dresdner US Finance, Inc.
10/28/99 5.39 56,000,000 55,526,520
Edison Asset Securitization LLC
9/16/99 5.29 50,000,000 49,890,208
10/6/99 5.38 40,000,000 39,791,944
10/12/99 5.37 40,000,000 39,757,189
10/25/99 5.39 40,000,000 39,679,000
10/25/99 5.40 55,000,000 54,558,625
2/8/00 5.92 14,000,000 13,642,222
2/14/00 5.93 51,494,000 50,126,319
Enterprise Funding Corp.
9/3/99 5.20 33,149,000 33,139,460
9/9/99 5.20 25,000,000 24,971,278
Falcon Asset Securitization
Corp.
9/8/99 5.22 20,000,000 19,979,778
9/15/99 5.14 10,000,000 9,980,283
10/12/99 5.39 50,000,000 49,695,347
10/14/99 5.42 4,000,000 3,974,296
11/1/99 5.46 15,000,000 14,862,750
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Finova Capital Corp.
9/9/99 5.41% (c) $ 27,000,000 $ 27,000,000
9/28/99 5.39 4,000,000 3,983,890
Ford Motor Credit Co.
10/5/99 5.33 225,000,000 223,873,747
Fortis Funding LLC
9/9/99 5.21 25,000,000 24,971,167
General Electric Capital Corp.
9/2/99 4.89 20,000,000 19,997,328
10/14/99 5.24 50,000,000 49,691,236
2/22/00 5.60 20,000,000 19,477,033
General Electric Capital
International Funding, Inc.
10/6/99 5.36 43,000,000 42,777,176
3/13/00 5.90 40,000,000 38,767,022
General Motors Acceptance Corp.
9/1/99 5.60 40,000,000 40,000,000
10/13/99 5.25 50,000,000 49,697,833
2/23/00 5.60 75,000,000 73,023,958
3/6/00 5.90 50,000,000 48,514,389
3/7/00 5.91 100,000,000 97,012,889
Generale de Banque SA
9/8/99 5.19 17,000,000 16,982,993
Goldman Sachs Group, Inc.
2/9/00 5.80 75,000,000 73,113,281
Heller Financial, Inc.
9/2/99 5.26 10,000,000 9,998,544
9/7/99 5.27 16,000,000 15,986,000
9/8/99 5.25 8,000,000 7,991,911
9/9/99 5.32 5,000,000 4,994,111
J.P. Morgan & Co., Inc.
9/22/99 5.23 50,000,000 49,849,500
12/6/99 5.20 75,000,000 73,986,000
2/2/00 5.75 40,000,000 39,043,489
JC Penney Funding Corp.
9/7/99 5.47 7,000,000 6,993,642
9/8/99 5.47 8,000,000 7,991,522
9/22/99 5.51 8,000,000 7,974,427
9/27/99 5.51 8,000,000 7,968,338
Kitty Hawk Funding Corp.
9/1/99 5.27 33,000,000 33,000,000
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Kitty Hawk Funding Corp. -
continued
9/7/99 5.03% $ 50,000,000 $ 49,958,583
9/7/99 5.29 30,000,000 29,973,600
9/20/99 5.00 25,000,000 24,935,677
Lehman Brothers Holdings, Inc.
9/16/99 5.30 33,000,000 32,927,813
9/21/99 5.30 20,000,000 19,941,667
9/23/99 5.30 10,000,000 9,967,917
Marsh USA, Inc.
9/22/99 5.30 35,500,000 35,390,660
2/15/00 5.71 30,000,000 29,230,408
MCI WorldCom, Inc.
9/1/99 5.28 7,000,000 7,000,000
9/24/99 5.32 8,000,000 7,973,064
11/15/99 5.48 (c) 40,000,000 40,000,000
Nationwide Building Society
10/12/99 5.25 41,300,000 41,056,353
10/14/99 5.25 33,338,000 33,131,730
10/18/99 5.25 30,000,000 29,797,117
11/4/99 4.98 15,000,000 14,870,400
Newport Funding Corp.
9/15/99 5.32 (c) 60,000,000 60,000,000
10/13/99 5.39 40,000,000 39,750,333
10/14/99 5.39 37,000,000 36,763,560
Norfolk Southern Corp.
9/7/99 5.39 5,000,000 4,995,525
9/8/99 5.36 13,000,000 12,986,527
9/8/99 5.40 5,550,000 5,544,194
9/8/99 5.44 3,000,000 2,996,838
10/5/99 5.53 5,000,000 4,974,028
Northern Rock PLC
9/15/99 5.19 10,000,000 9,980,011
10/12/99 5.25 20,000,000 19,882,011
PHH Corp.
9/1/99 5.32 7,000,000 7,000,000
9/7/99 5.35 10,000,000 9,991,117
9/13/99 5.42 8,000,000 7,985,600
9/22/99 5.42 6,000,000 5,981,100
Preferred Receivables Funding
Corp.
9/7/99 5.19 35,000,000 34,970,017
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Preferred Receivables Funding
Corp. - continued
10/7/99 5.39% $ 34,000,000 $ 33,818,100
11/16/99 5.45 17,000,000 16,806,559
11/18/99 5.46 10,000,000 9,883,217
Rohm & Haas Co.
9/22/99 5.41 20,000,000 19,937,117
9/28/99 5.42 25,663,000 25,559,065
Salomon Smith Barney
Holdings, Inc.
9/1/99 5.14 75,000,000 75,000,000
2/9/00 5.90 40,000,000 38,974,967
2/14/00 5.85 35,000,000 34,083,311
Societe Generale, North
America, Inc.
9/7/99 5.22 20,000,000 19,982,667
Three Rivers Funding Corp.
9/10/99 5.23 12,000,000 11,984,370
Triple-A One Funding Corp.
9/8/99 5.18 19,000,000 18,981,011
9/9/99 5.20 43,527,000 43,477,037
9/9/99 5.22 28,227,000 28,194,382
9/16/99 5.19 23,000,000 22,950,742
10/20/99 5.39 10,000,000 9,927,181
Tyco International Group SA
9/7/99 5.37 42,000,000 41,962,550
9/8/99 5.34 17,000,000 16,982,481
9/9/99 5.37 11,000,000 10,986,922
9/16/99 5.37 9,000,000 8,980,125
9/22/99 5.47 24,000,000 23,923,700
UBS Finance (Delaware), Inc.
9/10/99 5.20 65,000,000 64,915,825
11/17/99 5.00 25,000,000 24,739,323
12/7/99 5.27 50,000,000 49,308,875
12/13/99 5.00 200,000,000 197,224,722
Westdeutsche Landesbank
Girozentrale
9/28/99 5.32 85,000,000 84,662,444
Windmill Funding Corp.
9/1/99 5.19 18,637,000 18,637,000
9/3/99 5.19 25,000,000 24,992,819
9/8/99 5.20 25,000,000 24,974,868
9/9/99 5.31 25,000,000 24,970,556
9/13/99 5.23 6,000,000 5,989,600
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Windmill Funding Corp. -
continued
9/13/99 5.27% $ 56,000,000 $ 55,902,000
9/20/99 5.32 30,000,000 29,916,083
9/23/99 5.32 25,000,000 24,919,028
10/25/99 5.27 25,000,000 24,805,000
TOTAL COMMERCIAL PAPER 4,751,823,903
BANK NOTES - 8.0%
American Express Centurion Bank
9/1/99 5.45 (c) 50,000,000 50,000,000
Comerica Bank, Detroit
11/9/99 5.38 (c) 11,000,000 10,999,168
First National Bank, Chicago
9/16/99 5.18 50,000,000 50,000,000
7/12/00 5.75 100,000,000 99,958,666
First Union National Bank,
North Carolina
9/1/99 5.45 (c) 34,000,000 34,000,000
9/24/99 5.30 (c) 80,000,000 80,000,000
10/20/99 5.33 (c) 25,000,000 25,000,000
10/27/99 5.31 (c) 41,000,000 41,000,000
Fleet National Bank
9/1/99 5.46 (c) 50,000,000 49,979,279
Fleet National Bank, Providence
11/4/99 5.36 (c) 33,000,000 32,997,107
LaSalle National Bank, Chicago
10/6/99 5.24 10,000,000 10,000,000
2/1/00 5.75 50,000,000 50,000,000
Mellon Bank NA, Pittsburgh
9/1/99 5.38 (c) 24,000,000 23,990,629
NationsBank NA
9/1/99 5.45 55,000,000 54,984,909
9/1/99 4.90 80,000,000 80,000,000
9/7/99 4.90 50,000,000 50,000,000
9/8/99 5.01 60,000,000 60,000,000
PNC Bank NA, Pittsburgh
11/3/99 5.36 (c) 33,000,000 32,999,160
TOTAL BANK NOTES 835,908,918
MASTER NOTES - 0.7%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Goldman Sachs Group, Inc.
9/1/99 5.18% (c) $ 70,000,000 $ 70,000,000
MEDIUM-TERM NOTES - 6.6%
American Telephone & Telegraph
9/7/99 5.26 (c) 130,000,000 130,000,000
Bishops Gate Resources
Mortgage Trust
9/1/99 5.38 (c) 24,000,000 24,000,000
CIESCO L.P.
9/15/99 5.25 (c) 50,000,000 49,991,378
CIT Group, Inc.
9/1/99 5.45 (c) 40,000,000 39,983,022
Ford Motor Credit Co.
9/1/99 5.45 (c) 100,000,000 100,000,000
11/23/99 5.46 (c) 100,000,000 99,932,970
General Electric Capital Corp.
9/9/99 5.05 (c) 10,000,000 10,000,000
10/12/99 5.26 (c) 24,000,000 24,000,000
11/12/99 5.39 (c) 30,000,000 30,000,000
Goldman Sachs Group L.P.
10/7/99 5.51 (c)(d) 39,000,000 39,000,000
10/27/99 5.41 (c)(d) 33,000,000 33,000,000
11/10/99 5.42 (a)(c) 27,000,000 27,000,000
Morgan Guaranty Trust Co., NY
9/27/99 5.31 (c) 45,000,000 44,998,444
Norwest Corp.
10/22/99 5.33 (c) 31,000,000 31,000,000
TOTAL MEDIUM-TERM NOTES 682,905,814
SHORT-TERM NOTES - 3.7%
Capital One Funding Corp.
Series 1994 C,
9/7/99 5.47 (c) 5,716,000 5,716,000
Capital One Funding Corp.
Series 1994 E,
9/7/99 5.47 (c) 4,380,000 4,380,000
Capital One Funding Corp.
Series 1995 D,
9/7/99 5.47 (c) 9,614,000 9,614,000
SHORT-TERM NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Capital One Funding Corp.
Series 1995 E,
9/7/99 5.47% (c) $ 9,485,000 $ 9,485,000
Capital One Funding Corp.
Series 1997 F,
9/7/99 5.47 (c) 2,700,000 2,700,000
Jackson National Life
Insurance Co.
10/1/99 5.46 (c)(d) 36,000,000 36,000,000
Monumental Life Insurance Co.
9/1/99 5.32 (c)(d) 10,000,000 10,000,000
9/1/99 5.35 (c)(d) 45,000,000 45,000,000
New York Life Insurance Co.
10/1/99 5.47 (c)(d) 23,000,000 23,000,000
12/1/99 5.62 (c)(d) 25,000,000 25,000,000
Pacific Life Insurance Co.
9/9/99 5.14 (c)(d) 25,000,000 25,000,000
12/8/99 5.60 (b)(c)(d) 25,000,000 25,000,000
RACERS Series 1999 -16MM,
9/2/99 5.20 (a)(c) 48,000,000 48,000,000
SMM Trust Series 1999 E,
10/5/99 5.32 (a)(c) 19,000,000 19,000,000
SMM Trust Series 1999 I,
11/26/99 5.49 (a)(c) 26,000,000 26,000,000
Strategic Money Market Trust
Series 1998 A,
9/16/99 5.26 (c) 82,000,000 82,000,000
TOTAL SHORT-TERM NOTES 395,895,000
TIME DEPOSITS - 2.4%
Banco Bilbao Vizcaya SA
9/1/99 5.56 200,000,000 200,000,000
Toronto Dominion Bank
9/1/99 5.59 52,000,000 52,000,000
TOTAL TIME DEPOSITS 252,000,000
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 0.6%
MATURITY AMOUNT VALUE (NOTE 1)
In a joint trading account $ 60,231,216 $ 60,222,000
(U.S. Government
Obligations) dated 8/31/99
due 9/1/99 At 5.51%
TOTAL INVESTMENT IN $ 10,438,272,683
SECURITIES - 100%
</TABLE>
Total Cost for Income Tax Purposes $ 10,438,272,683
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 $120,000,000 or 1.2% of net assets.
(b) Security purchased on a delayed delivery or when-issued basis.
(c) 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.
(d) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE COST
Goldman Sachs Group L.P. 1/22/99 $ 33,000,000
5.41%, 10/27/99
Goldman Sachs Group L.P. 12/7/98 $ 39,000,000
5.51%, 10/7/99
Jackson National Life 7/6/99 $ 36,000,000
Insurance 5.46%, 10/1/99
Monumental Life Insurance Co. 7/31/98 $ 10,000,000
5.32%, 9/1/99
Monumental Life Insurance Co. 3/12/99 $ 45,000,000
5.35%, 9/1/99
New York Life Insurance Co. 12/21/98 $ 23,000,000
5.47%, 10/1/99
New York Life Insurance Co. 8/13/99 $ 25,000,000
5.62%, 12/1/99
Pacific Life Insurance Co. 8/31/99 $ 25,000,000
5.6%, 12/8/99
Pacific Life Insurance Co. 8/21/98 $ 25,000,000
5.14%, 9/9/99
INCOME TAX INFORMATION
At August 31, 1999, the fund had a capital loss carryforward of
approximately $255,000 of which $139,000, $42,000, $73,000 and $1,000
will expire on August 31, 2002, 2004, 2005 and 2006, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AUGUST 31, 1999
ASSETS
Investment in securities, at $ 10,438,272,683
value (including repurchase
agreements of $60,222,000) -
See accompanying schedule
Receivable for fund shares 44,137,698
sold
Interest receivable 57,891,186
TOTAL ASSETS 10,540,301,567
LIABILITIES
Payable to custodian bank $ 200,045
Payable for investments 145,319,198
purchased Regular delivery
Delayed delivery 25,000,000
Payable for fund shares 55,399,534
redeemed
Distributions payable 185,306
Accrued management fee 3,662,888
Other payables and accrued 59,248
expenses
TOTAL LIABILITIES 229,826,219
NET ASSETS $ 10,310,475,348
Net Assets consist of:
Paid in capital $ 10,310,730,284
Accumulated net realized gain (254,936)
(loss) on investments
NET ASSETS, for $ 10,310,475,348
10,310,658,274 shares
outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($10,310,475,348
(divided by) 10,310,658,274
shares)
STATEMENT OF OPERATIONS
YEAR ENDED AUGUST 31, 1999
INTEREST INCOME $ 483,413,423
EXPENSES
Management fee $ 38,781,590
Non-interested trustees' 31,239
compensation
Total expenses before 38,812,829
reductions
Expense reductions (3,797,214) 35,015,615
NET INTEREST INCOME 448,397,808
NET REALIZED GAIN (LOSS) ON 173,790
INVESTMENTS
NET INCREASE IN NET ASSETS $ 448,571,598
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED AUGUST 31, 1999 YEAR ENDED AUGUST 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 448,397,808 $ 355,292,533
Net realized gain (loss) 173,790 (34,936)
NET INCREASE (DECREASE) IN 448,571,598 355,257,597
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (448,397,808) (355,292,533)
from net interest income
Share transactions at net 16,462,325,115 11,617,803,340
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 448,025,762 354,492,137
distributions from net
interest income
Cost of shares redeemed (14,521,593,074) (10,277,557,678)
NET INCREASE (DECREASE) IN 2,388,757,803 1,694,737,799
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 2,388,931,593 1,694,702,863
IN NET ASSETS
NET ASSETS
Beginning of period 7,921,543,755 6,226,840,892
End of period $ 10,310,475,348 $ 7,921,543,755
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED AUGUST 31, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .049 .053 .052 .053 .054
Operations Net interest
income
Less Distributions
From net interest income (.049) (.053) (.052) (.053) (.054)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 4.97% 5.46% 5.37% 5.40% 5.57%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 10,310 $ 7,922 $ 6,227 $ 5,327 $ 4,350
(in millions)
Ratio of expenses to average .42% .42% .42% .37% B .42%
net assets
Ratio of expenses to average .38% C .39% C .39% C .34% C .42%
net assets after expense
reductions
Ratio of net interest income 4.85% 5.33% 5.21% 5.31% 5.49%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
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.
NOTES TO FINANCIAL STATEMENTS
For the period ended August 31, 1999
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 SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account,
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
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 after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. The market values of the securities purchased on a
when-issued or forward commitment basis are identified as such in the
fund's schedule of investments. The fund may receive compensation for
interest forgone in the purchase of a when-issued security. With
respect to purchase commitments, the fund identifies securities as
segregated in its records with a value at least equal to the amount of
the commitment. 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 $261,000,000 or 2.5% 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. The
management fee paid to FMR by the fund is reduced by an amount equal
to the fees and expenses paid by the fund to the non-interested
Trustees.
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.
MONEY MARKET INSURANCE. Pursuant to an Exemptive Order issued by the
SEC, the fund, along with other money market funds advised by FMR or
its affiliates, has entered into insurance agreements with FIDFUNDS
Mutual Limited (FIDFUNDS), an affiliated mutual insurance company,
effective January 1, 1999. FIDFUNDS
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MONEY MARKET INSURANCE - CONTINUED
provides limited coverage for certain loss events including issuer
default as to payment of principal or interest and bankruptcy or
insolvency of a credit enhancement provider. The insurance does not
cover losses resulting from changes in interest rates, ratings
downgrades or other market conditions. The fund may be subject to a
special assessment of up to approximately 2.5 times the fund's annual
gross premium if covered losses exceed certain levels. During the
period, FMR has borne the cost of the fund's premium payable to
FIDFUNDS.
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 $3,797,214 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, 1999, 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, 1999 by
correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 7, 1999
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
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
Matthew N. Karstetter, DEPUTY TREASURER
Stanley N. Griffith,
ASSISTANT VICE PRESIDENT
John H. Costello, 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
Abigail P. Johnson
* 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
RMM-PRO-1099 85643
1.703301.102
(Fidelity Logo Graphic)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
