FIDELITY
MONEY MARKET TRUST:
RETIREMENT GOVERNMENT
MONEY MARKET PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 28, 1999
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
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.
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
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, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FEDERAL AGENCIES - 76.5%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FANNIE MAE - 32.0%
Agency Coupons - 13.7%
3/1/99 4.72% (b) $ 48,000,000 $ 47,983,541
3/1/99 5.01 (b) 50,000,000 49,989,344
3/1/99 5.01 (b) 60,000,000 59,987,212
3/2/99 5.15 (b) 30,000,000 29,997,616
3/5/99 4.72 (b) 81,000,000 80,987,162
3/15/99 4.98 (b) 31,000,000 30,992,042
3/16/99 5.52 32,000,000 31,998,488
3/26/99 5.55 45,000,000 44,996,918
4/15/99 5.54 15,000,000 14,996,175
4/30/99 4.74 (b) 48,000,000 47,984,404
5/14/99 4.76 (b) 32,000,000 31,994,583
2/4/00 4.85 33,000,000 32,964,649
2/22/00 4.93 32,000,000 31,996,861
536,868,995
Discount Notes - 18.3%
3/3/99 5.07 26,200,000 26,192,708
3/5/99 5.07 39,564,000 39,541,932
3/11/99 5.03 31,000,000 30,957,177
3/11/99 5.04 50,000,000 49,930,833
3/15/99 5.00 31,000,000 30,940,626
3/15/99 5.31 33,000,000 32,933,652
3/18/99 5.03 92,000,000 91,784,081
5/17/99 4.99 34,000,000 33,645,843
5/18/99 4.81 100,000,000 98,970,833
5/19/99 4.82 80,000,000 79,164,356
6/4/99 5.33 25,000,000 24,661,563
6/14/99 5.41 25,000,000 24,621,563
6/30/99 4.84 60,000,000 59,058,217
8/4/99 5.43 9,865,000 9,644,419
8/4/99 5.44 18,000,000 17,596,740
8/9/99 5.35 30,000,000 29,315,750
8/20/99 5.34 42,230,000 41,205,031
720,165,324
1,257,034,319
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FEDERAL HOME LOAN BANK - 20.3%
Agency Coupons - 17.7%
3/1/99 4.89% (b) $ 50,000,000 $ 49,991,541
3/1/99 4.89 (b) 16,000,000 15,997,293
3/1/99 4.89 (b) 33,000,000 32,984,308
3/1/99 5.01 (b) 25,000,000 24,995,054
3/1/99 5.06 (b) 19,000,000 18,989,464
3/1/99 5.06 (b) 150,000,000 149,916,643
3/3/99 5.09 (b) 30,000,000 29,992,047
3/3/99 5.18 (b) 32,000,000 31,991,890
3/8/99 4.76 (b) 13,000,000 12,995,097
3/11/99 5.45 32,000,000 32,000,944
3/26/99 5.58 30,000,000 29,996,856
4/11/99 4.86 (b) 66,000,000 65,960,574
5/19/99 5.56 18,000,000 17,999,737
6/22/99 5.58 23,365,000 23,356,464
2/11/00 4.92 33,000,000 32,972,706
2/16/00 4.90 31,000,000 31,000,000
3/1/00 5.00 (a) 12,000,000 11,997,180
3/1/00 5.08 (a) 50,000,000 49,988,250
3/3/00 5.06 32,000,000 31,973,760
695,099,808
Discount Notes - 2.6%
3/5/99 4.80 20,000,000 19,989,400
5/12/99 4.80 17,500,000 17,334,100
5/12/99 4.81 30,000,000 29,715,120
5/13/99 4.80 5,900,000 5,843,291
5/14/99 4.81 32,000,000 31,687,556
104,569,467
799,669,275
FREDDIE MAC - 23.2%
Agency Coupons - 3.9%
3/1/99 4.97 (b) 31,000,000 30,978,351
3/12/99 5.52 24,000,000 24,000,072
3/21/99 4.73 (b) 32,000,000 31,994,390
8/13/99 5.52 66,000,000 65,983,901
152,956,714
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FREDDIE MAC - CONTINUED
Discount Notes - 19.3%
3/5/99 5.03% $ 28,000,000 $ 27,984,507
3/8/99 5.04 70,000,000 69,932,217
3/12/99 5.00 1,000,000 998,495
3/12/99 5.07 31,000,000 30,952,639
3/12/99 5.09 34,000,000 33,947,952
3/26/99 4.83 123,129,000 122,720,280
3/26/99 4.85 21,000,000 20,930,000
3/26/99 5.03 61,000,000 60,790,313
3/26/99 5.04 90,000,000 89,690,000
3/31/99 4.81 10,000,000 9,960,333
4/7/99 4.84 70,000,000 69,655,746
4/8/99 5.00 14,800,000 14,723,217
5/20/99 4.81 80,000,000 79,154,667
5/20/99 4.82 7,000,000 6,925,956
5/24/99 4.82 48,000,000 47,466,880
8/19/99 4.85 76,846,000 75,117,637
760,950,839
913,907,553
STATE OF ISRAEL (GUARANTEED
BY U.S. GOVERNMENT THROUGH
AGENCY FOR INTERNATIONAL
DEVELOPMENT) - 1.0%
Agency Coupons - 1.0%
8/15/99 4.74 14,504,000 14,647,087
8/15/99 4.82 24,000,000 24,227,937
38,875,024
TOTAL FEDERAL AGENCIES 3,009,486,171
</TABLE>
<TABLE>
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REPURCHASE AGREEMENTS - 23.5%
MATURITY AMOUNT
In a joint trading account
(U.S. Government
Obligations) dated:
10/19/98 due 3/22/99 At 4.86% $ 51,039,500 50,000,000
10/26/98 due 3/24/99 At 4.81% 25,497,701 25,000,000
1/28/99 due 3/29/99 At 4.83% 60,483,000 60,000,000
2/9/99 due 3/10/99 At 4.85% 63,246,138 63,000,000
2/23/99 due 3/22/99 At 4.85% 77,280,088 77,000,000
REPURCHASE AGREEMENTS -
CONTINUED
MATURITY AMOUNT VALUE (NOTE 1)
In a joint trading account
(U.S. Government
Obligations) dated: -
continued
2/25/99 due 3/29/99 At 4.88% $ 93,403,413 $ 93,000,000
2/26/99 due 3/1/99 At 4.86% 554,796,623 554,572,000
TOTAL REPURCHASE AGREEMENTS 922,572,000
TOTAL INVESTMENT IN $ 3,932,058,171
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 3,932,058,171
</TABLE>
LEGEND
(a) Security purchased on a delayed delivery or when-issued basis.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
INCOME TAX INFORMATION
At August 31, 1998, the fund had a capital loss carryforward of
approximately $278,000 of which $171,000, $105,000 and $2,000 will
expire on August 31, 2002, 2003 and 2004, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 3,932,058,171
value (including repurchase
agreements of $922,572,000)
- - See accompanying schedule
Receivable for fund shares 16,054,613
sold
Interest receivable 14,344,977
TOTAL ASSETS 3,962,457,761
LIABILITIES
Payable for investments $ 31,973,760
purchased Regular delivery
Delayed delivery 61,985,430
Payable for fund shares 24,165,728
redeemed
Distributions payable 27,015
Accrued management fee 1,237,655
Other payables and accrued 15,453
expenses
TOTAL LIABILITIES 119,405,041
NET ASSETS $ 3,843,052,720
Net Assets consist of:
Paid in capital $ 3,843,300,130
Accumulated net realized gain (247,410)
(loss) on investments
NET ASSETS, for 3,843,202,330 $ 3,843,052,720
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($3,843,052,720
(divided by) 3,843,202,330
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY
28, 1999 (UNAUDITED)
INTEREST INCOME $ 96,179,367
EXPENSES
Management fee $ 7,638,685
Non-interested trustees' 6,888
compensation
Total expenses before 7,645,573
reductions
Expense reductions (480,235) 7,165,338
NET INTEREST INCOME 89,014,029
NET REALIZED GAIN (LOSS) ON 44,186
INVESTMENTS
NET INCREASE IN NET ASSETS $ 89,058,215
RESULTING FROM OPERATIONS
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STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED FEBRUARY 28, YEAR ENDED AUGUST 31, 1998
1999
(UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 89,014,029 $ 160,122,292
Net realized gain (loss) 44,186 (13,200)
NET INCREASE (DECREASE) IN 89,058,215 160,109,092
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (89,014,029) (160,122,292)
from net interest income
Share transactions at net 3,092,734,005 4,216,554,049
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 89,014,028 159,999,327
distributions from net
interest income
Cost of shares redeemed (2,740,776,884) (3,874,344,275)
NET INCREASE (DECREASE) IN 440,971,149 502,209,101
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 441,015,335 502,195,901
IN NET ASSETS
NET ASSETS
Beginning of period 3,402,037,385 2,899,841,484
End of period $ 3,843,052,720 $ 3,402,037,385
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED FEBRUARY 28, YEARS ENDED AUGUST 31,
1999
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Invest- ment .024 .053 .052 .052 .053 .032
Operations Net interest
income
Less Distributions
From net interest income (.024) (.053) (.052) (.052) (.053) (.032)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B, C 2.45% 5.41% 5.31% 5.36% 5.46% 3.27%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 3,843 $ 3,402 $ 2,900 $ 2,523 $ 2,270 $ 1,655
millions)
Ratio of expenses to average .42% A .42% .42% .37% D .42% .42%
net assets
Ratio of expenses to average .39% A, E .39% E .39% E .34% E .42% .42%
net assets after expense
reductions
Ratio of net interest income 4.89% A 5.28% 5.16% 5.27% 5.38% 3.26%
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.
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.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1999 (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 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.
2. OPERATING POLICIES -
CONTINUED
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
market values of the securities purchased on a when-issued or forward
commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in
the purchase of a when-issued security. 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.
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
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<CAPTION>
<S> <C>
DATED OCTOBER 19, 1998, DUE MARCH 22, 1999 4.86%
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 $204,158,000
Aggregate market value of transferred assets $204,000,001
Coupon rates of transferred assets 6%
Maturity dates of transferred assets 1/1/27 to 1/1/29
DATED OCTOBER 26, 1998, DUE MARCH 24, 1999 4.81%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $125,000,000
Aggregate maturity amount of agreements $127,488,507
Aggregate market value of transferred assets $127,500,000
Coupon rates of transferred assets 6% to 9%
Maturity dates of transferred assets 2/15/14 to 2/15/29
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED JANUARY 28, 1999, DUE MARCH 29, 1999 4.83%
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 $100,805,000
Aggregate market value of transferred assets $102,407,785
Coupon rates of transferred assets 5.5% to 13.25%
Maturity dates of transferred assets 2/1/04 to 3/1/29
DATED FEBRUARY 9, 1999, DUE MARCH 10, 1999 4.85%
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 $100,390,694
Aggregate market value of transferred assets $102,244,592
Coupon rates of transferred assets 5.5% to 9%
Maturity dates of transferred assets 2/1/09 to 3/1/29
DATED FEBRUARY 23, 1999, DUE MARCH 22, 1999 4.85%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $125,000,000
Aggregate maturity amount of agreements $125,454,688
Aggregate market value of transferred assets $127,558,537
Coupon rates of transferred assets 5.5% to 12%
Maturity dates of transferred assets 9/1/99 to 3/1/29
DATED FEBRUARY 25, 1999, DUE MARCH 29, 1999 4.88%
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 $150,650,667
Aggregate market value of transferred assets $153,025,507
Coupon rates of transferred assets 6% to 12%
Maturity dates of transferred assets 11/1/07 to 3/1/29
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED FEBRUARY 26, 1999, DUE MARCH 1, 1999 4.86%
Number of dealers or banks 7
Maximum amount with one dealer or bank 28.5%
Aggregate principal amount of agreements $2,277,312,000
Aggregate maturity amount of agreements $2,278,234,398
Aggregate market value of transferred assets $2,329,009,028
Coupon rates of transferred assets 0% to 16%
Maturity dates of transferred assets 3/1/99 to 8/1/37
</TABLE>
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR pays all
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .42% of the fund's average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, Inc., a wholly owned subsidiary of FMR,
receives a fee from FMR of 50% of the management fee payable to FMR.
The fee is paid prior to any voluntary expense reimbursements which
may be in effect.
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 $480,235 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 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
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 *
* INDEPENDENT TRUSTEES
RGM-SANN-0499 73295
1.700932.101
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
(registered trademark)
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
FIDELITY
MONEY MARKET TRUST:
RETIREMENT MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 28, 1999
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
INVESTMENTS 3 A complete list of the fund's
investments.
FINANCIAL STATEMENTS 15 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 19 Notes to the financial
statements.
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
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, 1999 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
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CERTIFICATES OF DEPOSIT - 48.6%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
DOMESTIC CERTIFICATES OF
DEPOSIT - 3.4%
Chase Manhattan Bank
3/10/99 5.23% $ 50,000,000 $ 50,000,000
3/22/99 4.95 62,000,000 62,000,000
CoreStates Bank NA,
Philadelphia
3/11/99 4.88 (b) 5,000,000 5,000,000
First National Bank of Chicago
3/16/99 5.11 47,000,000 47,000,000
Fleet National Bank
5/3/99 4.97 (b) 33,000,000 32,983,173
Morgan Guaranty Trust Co., NY
3/10/99 5.25 50,000,000 50,000,000
4/15/99 4.90 75,000,000 75,000,000
321,983,173
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - 20.9%
Abbey National Treasury
Services PLC
3/15/99 5.15 115,000,000 115,000,000
4/8/99 4.95 50,000,000 50,000,000
4/15/99 4.90 75,000,000 75,000,000
8/9/99 4.90 140,000,000 140,006,109
Bank of Nova Scotia
5/5/99 4.93 100,000,000 100,001,776
Bank of Scotland Treasury
Services
3/9/99 5.16 15,000,000 15,000,033
3/10/99 5.12 50,000,000 50,000,035
3/31/99 5.19 20,000,000 20,000,165
4/12/99 5.07 10,000,000 10,000,115
Banque Nationale de Paris
5/4/99 5.05 6,000,000 5,999,584
Barclays Bank PLC
6/14/99 4.84 150,000,000 150,034,947
Bayerische Hypo-und
Vereinsbank AG
3/23/99 5.09 55,000,000 55,000,165
4/26/99 5.06 25,000,000 25,000,381
5/12/99 4.89 100,000,000 100,000,494
6/9/99 4.90 15,000,000 14,999,945
8/18/99 4.95 40,000,000 40,003,686
Commerzbank AG
4/21/99 5.07 34,000,000 33,985,696
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - CONTINUED
Commerzbank AG - continued
5/5/99 4.93% $ 100,000,000 $ 100,001,776
Credit Agricole Indosuez
8/5/99 4.90 75,000,000 75,000,000
8/16/99 4.92 20,000,000 20,000,000
Den Danske Bank Group AS
3/31/99 5.13 25,000,000 25,000,205
Dresdner Bank AG
4/12/99 4.91 50,000,000 50,001,037
Halifax PLC
3/22/99 4.85 60,000,000 60,000,000
8/12/99 4.92 30,000,000 30,000,000
8/19/99 4.95 10,000,000 10,000,000
8/23/99 4.95 75,000,000 75,003,315
9/1/99 5.00 30,000,000 30,000,000
Lloyds Bank PLC
3/18/99 5.12 15,000,000 15,000,000
Norddeutsche Landesbank
Girozentrale
6/30/99 4.93 25,000,000 25,000,826
Northern Rock PLC
6/24/99 4.93 50,000,000 50,000,000
Svenska Handelsbanken
5/4/99 4.87 270,000,000 270,002,362
Toronto Dominion Bank
3/18/99 5.13 50,000,000 50,000,000
6/4/99 5.05 50,000,000 50,000,000
Westdeutsche Landesbank
Girozentrale
5/17/99 4.90 50,000,000 50,001,057
1,985,043,709
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS - 23.6%
ABN-AMRO Bank NV
3/12/99 5.72 10,000,000 9,999,538
6/30/99 5.05 40,000,000 40,000,656
Bank of Nova Scotia
3/10/99 5.20 100,000,000 100,000,000
Bank of Scotland Treasury
Services
4/2/99 4.88 (b) 45,000,000 44,977,500
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
Banque Nationale de Paris
4/6/99 4.95% $ 60,000,000 $ 60,001,185
4/8/99 5.04 46,000,000 46,000,000
Barclays Bank PLC
3/30/99 5.18 10,000,000 10,002,348
3/1/00 5.30 45,000,000 44,973,954
Bayerische Hypo-und
Vereinsbank AG
4/19/99 4.90 85,000,000 85,000,000
Canadian Imperial Bank of
Commerce
3/2/99 5.70 30,000,000 29,999,949
4/5/99 5.09 60,000,000 60,000,000
2/23/00 5.17 30,000,000 29,985,787
Commerzbank AG
5/4/99 5.01 20,000,000 20,000,000
5/10/99 5.13 30,000,000 30,000,000
9/1/99 5.03 50,000,000 50,000,000
Credit Agricole Indosuez
3/1/00 5.22 50,000,000 49,985,519
Credit Communale de Belgique
8/11/99 4.92 35,000,000 35,000,000
Deutsche Bank AG
3/2/99 5.70 30,000,000 29,999,961
5/4/99 4.88 200,000,000 200,000,000
8/10/99 4.93 50,000,000 50,000,000
8/11/99 4.92 25,000,000 25,000,000
2/10/00 5.11 30,000,000 29,989,036
2/16/00 5.12 60,000,000 59,972,114
Dresdner Bank AG
4/26/99 5.05 25,000,000 25,000,000
Generale de Banque SA
3/16/99 5.14 10,000,000 10,000,021
Landesbank Hessen-Thuringen
4/12/99 5.07 40,000,000 40,000,459
Lloyds Bank PLC
5/10/99 5.05 50,000,000 50,000,000
Merita Bank PLC
5/3/99 4.90 50,000,000 50,000,000
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
National Westminster Bank PLC
3/2/99 5.70% $ 30,000,000 $ 29,999,961
3/19/99 5.13 20,000,000 20,002,639
6/7/99 5.75 50,000,000 49,991,321
9/2/99 5.03 40,000,000 40,000,000
3/15/00 5.15 25,000,000 24,989,665
Norddeutsche Landesbank
Girozentrale
2/10/00 5.10 20,000,000 19,992,690
RaboBank Nederland Coop.
Central
3/2/99 5.50 45,000,000 45,000,000
6/1/99 5.75 25,000,000 24,995,774
9/2/99 5.00 35,000,000 35,000,000
Royal Bank of Canada
6/11/99 5.80 25,000,000 24,995,317
8/23/99 5.00 30,000,000 30,064,571
2/18/00 5.15 35,000,000 34,988,552
2/28/00 5.26 20,000,000 19,991,292
Royal Bank of Scotland PLC
3/10/99 5.18 23,000,000 23,000,000
Swiss Bank Corp.
3/19/99 5.70 50,000,000 49,998,346
3/24/99 5.75 50,000,000 49,996,926
6/3/99 5.75 50,000,000 49,992,598
Toronto Dominion Bank
6/4/99 5.75 50,000,000 49,991,273
2/18/00 5.15 66,000,000 65,978,411
Union Bank of Switzerland
3/23/99 4.87 10,000,000 10,003,122
Westdeutsche Landesbank
Girozentrale
3/16/99 5.14 80,000,000 80,000,000
3/17/99 5.12 50,000,000 50,000,000
6/7/99 4.89 100,000,000 100,000,000
2,244,860,485
SAN FRANCISCO BRANCH, YANKEE
DOLLAR, FOREIGN BANKS - 0.7%
Banque Nationale de Paris
4/6/99 4.95 50,000,000 50,000,988
5/4/99 5.01 15,000,000 15,000,000
65,000,988
TOTAL CERTIFICATES OF DEPOSIT 4,616,888,355
COMMERCIAL PAPER - 36.4%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
ABN-AMRO North America, Inc.
3/30/99 5.17% $ 50,000,000 $ 49,794,583
AVCO Financial Services, Inc.
3/30/99 5.19 30,000,000 29,876,267
Abbey National Treasury
Services PLC
8/9/99 4.93 30,000,000 29,354,658
ANZ (Delaware), Inc.
3/22/99 5.10 50,000,000 49,853,146
Aspen Funding Corp.
3/10/99 5.40 20,000,000 19,973,500
5/11/99 4.91 20,000,000 19,808,694
Asset Securitization Coop.
Corp.
3/11/99 5.28 30,000,000 29,956,667
3/24/99 4.87 25,000,000 24,922,535
4/14/99 5.17 25,000,000 24,844,778
4/15/99 5.14 15,000,000 14,905,313
4/15/99 5.17 8,000,000 7,949,200
Associates Corp. of North
America
3/5/99 5.25 60,000,000 59,965,389
Associates First Capital Corp.
3/9/99 5.16 35,000,000 34,960,333
Bank of Nova Scotia
3/1/99 5.21 45,000,000 45,000,000
3/8/99 5.20 25,000,000 24,975,063
BankAmerica Corp.
3/10/99 5.26 25,000,000 24,967,688
Bear Stearns Companies, Inc.
3/11/99 5.40 15,000,000 14,977,875
3/15/99 5.40 15,000,000 14,969,083
Bradford & Bingley Building
Society
3/17/99 5.17 5,000,000 4,988,667
CIESCO L.P.
3/17/99 4.87 10,000,000 9,978,533
Centric Capital Corp.
3/23/99 4.89 11,380,000 11,346,132
5/26/99 4.92 25,000,000 24,709,750
Chase Manhattan Corp.
3/11/99 5.26 25,000,000 24,964,097
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
3/4/99 5.27 28,000,000 27,987,867
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Citibank Credit Card Master
Trust I (Dakota Certificate
Program) - continued
4/21/99 4.88% $ 7,000,000 $ 6,952,202
4/22/99 4.89 70,000,000 69,511,633
5/12/99 4.90 35,000,000 34,661,200
Commonwealth Bank of Australia
3/17/99 5.11 20,000,000 19,955,111
8/12/99 4.92 15,000,000 14,672,000
8/23/99 4.96 20,900,000 20,408,269
ConAgra, Inc.
3/25/99 4.97 5,000,000 4,983,500
3/29/99 4.96 13,000,000 12,950,051
4/1/99 4.99 7,000,000 6,970,163
4/30/99 5.00 10,000,000 9,917,667
4/30/99 5.01 6,000,000 5,950,500
Daimler-Chrysler North
America Corp.
4/28/99 5.15 20,000,000 19,836,956
5/20/99 4.91 33,000,000 32,644,333
5/26/99 4.90 35,000,000 34,595,322
6/10/99 4.91 15,000,000 14,796,317
6/15/99 4.92 25,000,000 24,642,986
Delaware Funding Corp.
3/10/99 4.88 18,689,000 18,666,340
3/22/99 4.88 35,603,000 35,502,066
Den Danske Corp., Inc.
3/29/99 5.20 29,000,000 28,884,290
Deutsche Bank Financial, Inc.
4/19/99 4.94 5,000,000 4,966,857
Enterprise Funding Corp.
3/25/99 4.88 19,000,000 18,938,440
4/22/99 4.88 21,000,000 20,853,793
5/3/99 4.88 30,000,000 29,746,950
Falcon Asset Securitization
3/11/99 4.89 8,880,000 8,868,012
3/16/99 4.88 20,000,000 19,959,583
Finova Capital Corp.
3/26/99 5.39 3,450,000 3,437,302
5/3/99 5.05 7,000,000 6,938,750
Fleet Funding Corp.
3/10/99 4.88 15,000,000 14,981,813
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Ford Motor Credit Co.
3/5/99 5.18% $ 30,000,000 $ 29,982,967
General Electric Capital Corp.
3/1/99 5.15 20,000,000 20,000,000
3/4/99 5.13 25,000,000 24,989,438
3/5/99 5.25 30,000,000 29,982,667
3/10/99 5.24 25,000,000 24,967,813
3/16/99 5.24 65,000,000 64,860,521
5/5/99 4.90 50,000,000 49,563,958
6/2/99 4.90 100,000,000 98,752,250
7/19/99 4.89 19,000,000 18,646,811
8/18/99 4.93 100,000,000 97,728,611
General Electric Capital
Services, Inc.
3/2/99 5.14 25,000,000 24,996,479
3/5/99 5.25 50,000,000 49,971,167
General Electric Co.
4/8/99 5.09 20,000,000 19,894,444
General Motors Acceptance Corp.
4/8/99 4.87 60,000,000 59,694,100
4/22/99 4.87 45,000,000 44,687,350
Generale de Banque SA
8/10/99 4.92 40,000,000 39,136,000
Goldman Sachs Group L.P.
3/11/99 5.34 75,000,000 74,890,625
Heller Financial, Inc.
3/18/99 5.50 8,000,000 7,979,524
3/30/99 5.11 10,000,000 9,959,319
5/5/99 5.03 12,000,000 11,892,533
5/24/99 5.08 7,000,000 6,918,007
Kitty Hawk Funding Corp.
3/1/99 5.32 10,000,000 10,000,000
3/1/99 5.36 10,000,000 10,000,000
3/4/99 5.33 9,000,000 8,996,063
3/10/99 5.24 10,000,000 9,987,075
3/22/99 4.88 17,000,000 16,951,805
Lehman Brothers Holdings, Inc.
3/9/99 5.15 30,000,000 29,965,867
3/16/99 5.15 10,000,000 9,978,667
3/17/99 5.16 20,000,000 19,954,489
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
MCI WorldCom, Inc.
3/26/99 5.54% $ 15,000,000 $ 14,943,229
3/30/99 5.02 32,000,000 31,871,111
5/5/99 5.02 43,000,000 42,615,688
Morgan (JP) & Co., Inc.
4/12/99 5.09 70,000,000 69,591,667
Nationwide Building Society
3/15/99 5.19 15,000,000 14,970,192
3/26/99 4.87 25,000,000 24,916,233
New Center Asset Trust
3/8/99 5.17 40,000,000 39,960,333
4/22/99 4.87 20,000,000 19,861,044
Newport Funding Corp.
5/4/99 4.90 30,000,000 29,741,867
5/12/99 4.91 25,000,000 24,757,500
5/19/99 4.92 25,000,000 24,733,375
Nordbanken, North America, Inc.
3/1/99 5.26 45,000,000 45,000,000
Norfolk Southern Corp.
3/3/99 5.02 34,714,000 34,704,357
3/4/99 5.02 21,000,000 20,991,250
3/8/99 5.02 6,421,000 6,414,757
Northern Rock PLC
6/24/99 4.92 24,289,000 23,913,465
PHH Corp.
3/15/99 5.01 7,000,000 6,986,389
3/23/99 5.04 15,000,000 14,953,983
3/24/99 5.02 35,000,000 34,888,194
3/24/99 5.03 12,000,000 11,961,552
4/21/99 5.12 17,000,000 16,878,379
Preferred Receivables Funding
Corp.
3/1/99 5.22 17,000,000 17,000,000
3/3/99 5.21 10,000,000 9,997,139
3/11/99 5.23 8,595,000 8,582,657
3/25/99 4.87 38,700,000 38,575,386
4/14/99 4.93 45,000,000 44,730,500
4/15/99 4.86 13,000,000 12,921,838
Royal Bank of Scotland PLC
3/10/99 5.22 7,000,000 6,990,988
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Salomon Smith Barney
Holdings, Inc.
3/1/99 5.25% $ 50,000,000 $ 50,000,000
3/15/99 5.26 15,000,000 14,969,783
3/22/99 5.25 13,000,000 12,960,908
Sears Roebuck Acceptance Corp.
3/3/99 5.30 13,000,000 12,996,208
4/7/99 5.14 8,000,000 7,958,478
Societe Generale North
America, Inc.
5/3/99 4.86 90,000,000 89,243,213
8/10/99 4.92 50,000,000 48,920,000
8/10/99 4.95 25,000,000 24,457,188
Three Rivers Funding Corp.
3/22/99 4.89 7,000,000 6,980,114
Triple A One Funding Corp.
3/22/99 4.88 34,000,000 33,903,610
Tyco International Group SA
3/24/99 5.02 8,000,000 7,974,444
3/25/99 5.04 5,600,000 5,581,333
3/29/99 5.02 4,000,000 3,984,444
5/10/99 5.07 17,000,000 16,834,722
5/26/99 5.08 23,000,000 22,724,179
5/27/99 5.09 10,000,000 9,878,683
UBS Finance (Delaware), Inc.
3/1/99 5.05 50,000,000 50,000,000
4/9/99 4.91 20,000,000 19,894,917
5/10/99 5.02 75,000,000 74,282,938
8/9/99 4.90 25,000,000 24,465,569
8/9/99 4.91 50,000,000 48,928,903
8/9/99 4.92 75,000,000 73,390,000
Unifunding, Inc.
5/19/99 4.90 10,000,000 9,893,789
TOTAL COMMERCIAL PAPER 3,459,227,270
FEDERAL AGENCIES - 0.5%
FEDERAL HOME LOAN BANK - 0.5%
Discount Notes - 0.5%
3/31/99 5.00 50,000,000 49,794,167
BANK NOTES - 7.4%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Abbey National Treasury
Services PLC
5/17/99 4.85% (a)(b) $ 40,000,000 $ 39,983,887
Comerica Bank, Detroit
5/10/99 4.99 (b) 11,000,000 10,996,950
First Union National Bank of
North Carolina
3/1/99 4.99 (b) 60,000,000 60,000,000
3/1/99 4.98 (b) 35,000,000 34,999,374
3/1/99 5.50 100,000,000 100,000,000
4/21/99 4.99 (b) 25,000,000 25,000,000
Fleet National Bank, Providence
5/4/99 4.97 (b) 33,000,000 32,988,789
Key Bank NA
3/22/99 4.81 (b) 30,000,000 29,991,247
LaSalle National Bank, Chicago
6/28/99 4.92 25,000,000 25,000,000
NationsBank NA
4/20/99 4.90 50,000,000 50,000,000
6/30/99 5.05 40,000,000 40,000,000
8/24/99 4.95 90,000,000 90,000,000
9/8/99 5.01 60,000,000 60,000,000
PNC Bank NA, Pittsburgh
3/1/99 4.82 (b) 40,000,000 39,989,304
5/3/99 4.98 (b) 33,000,000 32,996,706
Westpac Banking Corp.
5/5/99 5.85 35,000,000 34,997,008
TOTAL BANK NOTES 706,943,265
MASTER NOTES - 1.6%
Goldman Sachs Group L.P.
3/8/99 5.30 (b) 70,000,000 70,000,000
J.P. Morgan Securities, Inc.
3/5/99 4.91 (b) 75,000,000 75,000,000
SunTrust Banks, Inc.
3/1/99 4.91 (b) 10,000,000 10,000,000
TOTAL MASTER NOTES 155,000,000
MEDIUM-TERM NOTES - 2.6%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Bishops Gate Resources
Mortgage Trust
3/1/99 5.14% (b) $ 24,000,000 $ 24,000,000
General Electric Capital Corp.
3/9/99 5.19 (b) 10,000,000 10,000,000
Goldman Sachs Group L.P.
4/7/99 5.26 (b)(c) 39,000,000 39,000,000
4/27/99 5.07 (b)(c) 33,000,000 33,000,000
5/10/99 5.05 (a)(b) 27,000,000 27,000,000
Merrill Lynch & Co., Inc.
3/4/99 5.21 (b) 25,000,000 24,998,723
Morgan Guaranty Trust Co., NY
3/29/99 4.89 (b) 45,000,000 44,987,435
Norwest Corp.
4/22/99 4.99 (b) 31,000,000 31,000,000
Premier Auto Trust
6/8/99 5.41 9,956,241 9,955,650
TOTAL MEDIUM-TERM NOTES 243,941,808
SHORT-TERM NOTES - 2.8%
Capital One Funding Corp.
(1994-C)
3/5/99 4.97 (b) 5,888,000 5,888,000
Capital One Funding Corp.
(1994-E)
3/5/99 4.97 (b) 5,852,000 5,852,000
Capital One Funding Corp.
(1995-D)
3/5/99 4.97 (b) 10,519,000 10,519,000
Capital One Funding Corp.
(1995-E)
3/5/99 4.97 (b) 9,593,000 9,593,000
Capital One Funding Corp.
(1997-F)
3/5/99 4.97 (b) 2,800,000 2,800,000
Monumental Life Insurance Co.
3/1/99 5.08 (b)(c) 10,000,000 10,000,000
New York Life Insurance Co.
3/1/99 5.21 (b) 25,000,000 25,000,000
4/1/99 5.35 (b)(c) 23,000,000 23,000,000
Pacific Life Insurance Co.
3/9/99 5.28 (a)(b) 25,000,000 25,000,000
SHORT-TERM NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
SMM Trust (1998-I)
3/29/99 4.94% (a)(b) $ 16,000,000 $ 16,000,000
Strategic Money Market Trust
(1998-A)
3/16/99 5.32 (b) 82,000,000 82,000,000
Strategic Money Market Trust
(1998-B)
3/5/99 4.94 (a)(b) 50,000,000 50,000,000
TOTAL SHORT-TERM NOTES 265,652,000
REPURCHASE AGREEMENTS - 0.1%
MATURITY AMOUNT
In a joint trading account $ 4,579,854 4,578,000
(U.S. Government
Obligations) dated 2/26/99
due 3/1/99 At 4.86%
TOTAL INVESTMENT IN $ 9,502,024,865
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 9,502,024,865
</TABLE>
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 $157,983,887 or 1.8% of net assets.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
(c) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
SECURITY ACQUISITION DATE COST
Goldman Sachs Group L.P. 12/7/98 $ 39,000,000
5.26%, 4/7/99
Goldman Sachs Group L.P. 1/22/99 $ 33,000,000
5.07%, 4/27/99
Monumental Life Insurance Co. 7/31/98 $ 10,000,000
5.08%, 3/1/99
New York Life Insurance Co. 12/21/98 $ 23,000,000
5.35%, 4/1/99
INCOME TAX INFORMATION
At August 31, 1998, the fund had a capital loss carryforward of
approximately $395,000 of which $279,000, $42,000, $73,000 and $1,000
will expire on August 31, 2002, 2004, 2005 and 2006, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999 (UNAUDITED)
ASSETS
Investment in securities, at $ 9,502,024,865
value (including repurchase
agreements of $4,578,000) -
See accompanying schedule
Receivable for fund shares 32,691,521
sold
Interest receivable 63,231,433
TOTAL ASSETS 9,597,947,819
LIABILITIES
Payable to custodian bank $ 63,982
Payable for investments 294,936,972
purchased
Payable for fund shares 444,686,858
redeemed
Distributions payable 183,850
Accrued management fee 2,966,329
Other payables and accrued 50,828
expenses
TOTAL LIABILITIES 742,888,819
NET ASSETS $ 8,855,059,000
Net Assets consist of:
Paid in capital $ 8,855,301,873
Accumulated net realized gain (242,873)
(loss) on investments
NET ASSETS, for 8,855,229,863 $ 8,855,059,000
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($8,855,059,000
(divided by) 8,855,229,863
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY
28, 1999 (UNAUDITED)
INTEREST INCOME $ 231,934,762
EXPENSES
Management fee $ 18,049,427
Non-interested trustees' 16,434
compensation
Total expenses before 18,065,861
reductions
Expense reductions (2,018,621) 16,047,240
NET INTEREST INCOME 215,887,522
NET REALIZED GAIN (LOSS) ON 185,853
INVESTMENTS
NET INCREASE IN NET ASSETS $ 216,073,375
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED FEBRUARY 28, YEAR ENDED AUGUST 31, 1998
1999 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 215,887,522 $ 355,292,533
Net realized gain (loss) 185,853 (34,936)
NET INCREASE (DECREASE) IN 216,073,375 355,257,597
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (215,887,522) (355,292,533)
from net interest income
Share transactions at net 8,272,135,065 11,617,803,340
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 215,600,383 354,492,137
distributions from net
interest income
Cost of shares redeemed (7,554,406,056) (10,277,557,678)
NET INCREASE (DECREASE) IN 933,329,392 1,694,737,799
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 933,515,245 1,694,702,863
IN NET ASSETS
NET ASSETS
Beginning of period 7,921,543,755 6,226,840,892
End of period $ 8,855,059,000 $ 7,921,543,755
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED FEBRUARY 28, YEARS ENDED AUGUST 31,
1999
(UNAUDITED) 1998 1997 1996 1995 1994
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Invest- ment .025 .053 .052 .053 .054 .034
Operations Net interest
income
Less Distributions
From net interest income (.025) (.053) (.052) (.053) (.054) (.034)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B, C 2.51% 5.46% 5.37% 5.40% 5.57% 3.41%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 8,855 $ 7,922 $ 6,227 $ 5,327 $ 4,350 $ 2,800
millions)
Ratio of expenses to average .42% A .42% .42% .37% D .42% .42%
net assets
Ratio of expenses to average .37% A, E .39% E .39% E .34% E .42% .42%
net assets after expense
reductions
Ratio of net interest income 5.02% A 5.33% 5.21% 5.31% 5.49% 3.44%
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.
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.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1999 (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 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.
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. 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. 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 $105,000,000 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 interest, taxes, brokerage commissions and
extraordinary expenses. FMR receives a fee that is computed daily at
an annual rate of .42% of the fund's average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, Inc., a wholly owned subsidiary of FMR,
receives a fee from FMR of 50% of the management fee payable to FMR.
The fee is paid prior to any voluntary expense reimbursements which
may be in effect.
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
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
MONEY MARKET INSURANCE -
CONTINUED
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 $2,018,621 under these arrangements.
5. BENEFICIAL INTEREST.
At the end of the period, one shareholder was record owner of
approximately 14% of the total outstanding shares of the fund.
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
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
Abigail P. Johnson
* INDEPENDENT TRUSTEES
RMM-SANN-0499 73296
1.700934.101
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
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
