(2_FIDELITY_LOGOS)(registered trademark)
FIDELITY(REGISTERED TRADEMARK)
MONEY MARKET TRUST:
RETIREMENT GOVERNMENT
MONEY MARKET PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 29, 2000
CONTENTS
INVESTMENTS 3 A complete list of the fund's
investments.
FINANCIAL STATEMENTS 6 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 10 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 29, 2000 (UNAUDITED)
Showing Percentage of Net Assets
<TABLE>
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FEDERAL AGENCIES - 71.1%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FANNIE MAE - 30.7%
Agency Coupons - 18.7%
3/1/00 5.87% (b) $ 63,000,000 $ 62,986,143
3/2/00 5.70 (b) 40,000,000 39,988,639
3/10/00 5.71 (b) 80,000,000 79,990,820
3/24/00 5.69 (b) 79,000,000 78,996,550
4/14/00 5.84 (b) 160,000,000 159,961,639
5/4/00 5.92 (b) 83,000,000 82,978,774
5/5/00 5.04 30,000,000 29,993,553
5/15/00 5.88 (b) 97,000,000 96,942,263
6/7/00 5.25 40,000,000 39,988,861
6/9/00 5.38 32,000,000 31,988,284
9/25/00 5.82 33,000,000 32,853,454
3/1/01 6.55 (a) 30,000,000 29,996,700
766,665,680
Discount Notes - 12.0%
3/7/00 5.83 6,500,000 6,493,749
4/27/00 5.84 130,000,000 128,815,429
5/3/00 5.68 27,000,000 26,739,180
5/4/00 5.91 50,000,000 49,482,667
5/11/00 5.87 200,000,000 197,716,170
7/28/00 5.73 42,000,000 41,057,823
8/10/00 6.09 40,000,000 38,936,200
489,241,218
FEDERAL HOME LOAN BANK - 23.8%
Agency Coupons - 22.6%
3/1/00 5.00 62,000,000 62,000,000
3/1/00 5.88 (b) 95,000,000 94,960,420
3/1/00 6.35 (b) 42,000,000 41,984,611
3/3/00 5.06 32,000,000 31,999,857
3/6/00 5.78 (b) 80,000,000 79,962,553
3/8/00 5.17 40,000,000 39,999,281
4/4/00 5.84 (b) 160,000,000 159,934,762
4/5/00 5.03 21,190,000 21,187,852
4/17/00 5.85 (b) 80,000,000 79,960,595
5/12/00 5.87 (b) 31,000,000 30,994,816
5/19/00 5.13 65,000,000 64,990,810
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FEDERAL HOME LOAN BANK -
CONTINUED
Agency Coupons - continued
6/14/00 5.47% $ 22,000,000 $ 21,991,543
8/17/00 5.86 36,860,000 36,789,387
11/3/00 6.00 41,000,000 40,986,165
11/3/00 6.02 16,000,000 15,992,981
12/1/00 6.03 33,000,000 32,960,501
2/7/01 6.48 67,000,000 66,860,530
923,556,664
Discount Notes - 1.2%
8/16/00 6.12 50,000,000 48,614,000
FREDDIE MAC - 14.0%
Agency Coupons - 5.8%
3/20/00 5.89 (b) 126,000,000 125,873,484
4/10/00 5.81 (b) 66,000,000 65,946,037
1/16/01 6.43 48,000,000 45,415,673
237,235,194
Discount Notes - 8.2%
3/2/00 5.83 5,700,000 5,699,086
6/2/00 5.40 40,000,000 39,470,933
6/2/00 5.46 39,000,000 38,478,115
6/13/00 5.51 32,000,000 31,517,440
6/13/00 5.53 25,000,000 24,620,472
6/15/00 5.45 32,000,000 31,513,342
6/23/00 5.50 34,000,000 33,436,903
7/5/00 5.61 22,060,000 21,649,243
7/20/00 6.13 63,260,000 61,783,301
2/7/01 6.50 50,000,000 47,094,028
335,262,863
STUDENT LOAN MARKETING
ASSOCIATION - 2.6%
Agency Coupons - 2.6%
3/2/00 6.43 (b) 18,000,000 17,998,997
3/7/00 6.48 (b) 20,000,000 19,995,765
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
STUDENT LOAN MARKETING
ASSOCIATION - CONTINUED
Agency Coupons - continued
3/7/00 6.50% (b) $ 25,000,000 $ 24,999,580
3/7/00 6.53 (b) 41,000,000 40,991,437
103,985,779
TOTAL FEDERAL AGENCIES 2,904,561,398
</TABLE>
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REPURCHASE AGREEMENTS - 34.2%
MATURITY AMOUNT
In a joint trading account
(U.S. Government
Obligations) dated:
2/3/00 due 3/15/00 At 5.81% $ 166,091,796 165,000,000
2/29/00 due 3/1/00 At 5.86% 1,232,717,630 1,232,517,000
TOTAL REPURCHASE AGREEMENTS 1,397,517,000
TOTAL INVESTMENT PORTFOLIO - 4,302,078,398
105.3%
NET OTHER ASSETS - (5.3)% (214,805,668)
NET ASSETS - 100% $ 4,087,272,730
</TABLE>
Total Cost for Income Tax Purposes $ 4,302,078,398
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, 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
FEBRUARY 29, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 4,302,078,398
value (including repurchase
agreements of
$1,397,517,000) - See
accompanying schedule
Receivable for fund shares 22,183,860
sold
Interest receivable 19,650,441
TOTAL ASSETS 4,343,912,699
LIABILITIES
Payable to custodian bank $ 448
Payable for investment 29,996,700
purchased on a delayed
delivery basis
Payable for fund shares 225,106,798
redeemed
Distributions payable 66,443
Accrued management fee 1,456,457
Other payables and accrued 13,123
expenses
TOTAL LIABILITIES 256,639,969
NET ASSETS $ 4,087,272,730
Net Assets consist of:
Paid in capital $ 4,087,426,520
Accumulated net realized gain (153,790)
(loss) on investments
NET ASSETS, for 4,087,328,720 $ 4,087,272,730
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($4,087,272,730
(divided by) 4,087,328,720
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY
29, 2000 (UNAUDITED)
INTEREST INCOME $ 122,312,516
EXPENSES
Management fee $ 9,141,609
Non-interested trustees' 6,697
compensation
Interest 5,278
Total expenses before 9,153,584
reductions
Expense reductions (624,490) 8,529,094
NET INTEREST INCOME 113,783,422
NET REALIZED GAIN (LOSS) ON 102,387
INVESTMENTS
NET INCREASE IN NET ASSETS $ 113,885,809
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
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SIX MONTHS ENDED FEBRUARY 29, YEAR ENDED AUGUST 31, 1999
2000 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 113,783,422 $ 183,466,664
Net realized gain (loss) 102,387 35,419
NET INCREASE (DECREASE) IN 113,885,809 183,502,083
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (113,783,422) (183,466,664)
from net interest income
Share transactions at net 4,071,832,533 6,653,598,429
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 113,544,131 183,356,937
distributions from net
interest income
Cost of shares redeemed (4,297,130,856) (6,040,103,635)
NET INCREASE (DECREASE) IN (111,754,192) 796,851,731
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) (111,651,805) 796,887,150
IN NET ASSETS
NET ASSETS
Beginning of period 4,198,924,535 3,402,037,385
End of period $ 4,087,272,730 $ 4,198,924,535
</TABLE>
FINANCIAL HIGHLIGHTS
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SIX MONTHS ENDED FEBRUARY 29, YEARS ENDED AUGUST 31,
2000
(UNAUDITED) 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment .026 .048 .053 .052 .052 .053
Operations Net interest
income
Less Distributions
From net interest income (.026) (.048) (.053) (.052) (.052) (.053)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 2.63% 4.86% 5.41% 5.31% 5.36% 5.46%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 4,087 $ 4,199 $ 3,402 $ 2,900 $ 2,523 $ 2,270
millions)
Ratio of expenses to average .42% A .42% .42% .42% .37% D .42%
net assets
Ratio of expenses to average .39% A, E .39% E .39% E .39% E .34% E .42%
net assets after expense
reductions
Ratio of net interest income 5.22% A 4.75% 5.28% 5.16% 5.27% 5.38%
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 29, 2000 (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, Federal Agency,
and other obligations found satisfactory by FMR 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
REVERSE REPURCHASE AGREEMENTS. At all times that a reverse repurchase
agreement is outstanding, the fund identifies cash and liquid
securities as segregated in its custodian records with a value at
least equal to its obligation under the agreement. The average daily
balance during the period for which the reverse repurchase agreement
was outstanding amounted to $40,000,000. The weighted average interest
rate was 4.75%.
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 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 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 FEBRUARY 3, 2000, DUE MARCH 15, 2000 5.81%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $250,000,000
Aggregate maturity amount of agreements $251,654,236
Aggregate market value of transferred assets $256,531,251
Coupon rates of transferred assets 6.00% to 8.00%
Maturity dates of transferred assets 10/1/03 to 2/1/30
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED FEBRUARY 29, 2000, DUE MARCH 1, 2000 5.86%
Number of dealers or banks 6
Maximum amount with one dealer or bank 45.5%
Aggregate principal amount of agreements $3,031,000,000
Aggregate maturity amount of agreements $3,031,493,390
Aggregate market value of transferred assets $3,104,507,301
Coupon rates of transferred assets 0.00% to 14.05%
Maturity dates of transferred assets 3/8/00 to 11/1/38
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a fee
that is computed daily at an annual rate of .42% of the fund's average
net assets. FMR pays all other expenses, except the compensation of
the non-interested Trustees and certain exceptions such as interest,
taxes, brokerage commissions and extraordinary expenses. 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.
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.
Through arrangements with the fund's custodian and transfer agent,
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 $624,490 under these arrangements.
INVESTMENT ADVISER
Fidelity Management &
Research Company
Boston, MA
SUB-ADVISER
Fidelity Investments Money
Management, Inc.
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
Robert A. Dwight, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
Maria F. Dwyer, 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
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
* INDEPENDENT TRUSTEES
ADVISORY BOARD
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)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
FIDELITY(REGISTERED TRADEMARK)
(registered trademark)
MONEY MARKET TRUST:
RETIREMENT MONEY MARKET
PORTFOLIO
SEMIANNUAL REPORT
FEBRUARY 29, 2000
CONTENTS
INVESTMENTS 3 A complete list of the fund's
investments.
FINANCIAL STATEMENTS 14 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 18 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 29, 2000 (UNAUDITED)
Showing Percentage of Net Assets
<TABLE>
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CERTIFICATES OF DEPOSIT - 34.8%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
DOMESTIC CERTIFICATES OF
DEPOSIT - 3.1%
First Union National Bank,
North Carolina
5/17/00 6.00% $ 100,000,000 $ 100,000,000
5/20/00 6.18 (b) 75,000,000 75,000,000
5/30/00 6.00 40,000,000 40,000,000
11/21/00 6.48 50,000,000 50,000,000
U.S. Bank NA, Minnesota
3/20/00 5.95 41,000,000 41,000,000
306,000,000
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - 13.2%
Abbey National Treasury
Services PLC
11/9/00 6.50 75,000,000 75,000,000
ABN-AMRO Bank NV
8/4/00 6.25 50,000,000 50,000,000
Bank of Scotland Treasury
Services PLC
4/12/00 5.91 50,000,000 50,000,223
5/15/00 6.00 25,000,000 24,999,846
Barclays Bank PLC
3/6/00 5.90 50,000,000 50,000,035
5/8/00 6.01 60,000,000 60,000,558
7/28/00 5.80 41,000,000 41,000,000
Bayerische Hypo-und
Vereinsbank AG
3/8/00 6.00 55,000,000 55,000,000
Bayerische Landesbank
Girozentrale
7/28/00 6.25 25,000,000 24,988,204
Commerzbank AG
5/18/00 6.03 50,000,000 50,002,971
Credit Agricole Indosuez
5/8/00 6.02 50,000,000 50,000,930
Den Danske Bank Group AS
3/9/00 6.03 50,000,000 50,000,219
Deutsche Bank AG
6/28/00 6.10 40,000,000 39,998,930
Dresdner Bank AG
3/6/00 6.02 100,000,000 100,000,000
Halifax PLC
3/7/00 6.02 50,000,000 50,000,000
5/22/00 6.00 100,000,000 100,000,000
6/26/00 6.10 75,000,000 75,000,000
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - CONTINUED
ING Bank NV
6/28/00 6.11% $ 50,000,000 $ 50,000,000
8/3/00 6.25 110,000,000 110,002,295
Norddeutsche Landesbank
Girozentrale
8/22/00 6.30 50,000,000 50,004,684
RaboBank Nederland Coop.
Central
6/22/00 6.10 75,000,000 75,000,000
Westdeutsche Landesbank
Girozentrale
5/22/00 6.00 100,000,000 99,996,178
1,330,995,073
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS - 18.5%
Bank of Scotland Treasury
Services
3/2/00 5.81 (b) 45,000,000 44,999,939
Banque Nationale de Paris
8/2/00 5.85 40,000,000 39,991,925
Barclays Bank PLC
3/1/00 5.30 45,000,000 45,000,000
3/1/00 5.88 (b) 35,000,000 34,997,575
3/1/00 5.89 (b) 25,000,000 24,997,138
3/31/00 5.84 100,000,000 100,000,000
6/14/00 5.66 75,000,000 74,989,658
Bayerische Hypo-und
Vereinsbank AG
3/27/00 5.80 (b) 70,000,000 69,968,892
Credit Agricole Indosuez
3/1/00 5.22 50,000,000 50,000,000
Credit Communale de Belgique
3/7/00 6.00 75,000,000 75,000,000
2/22/01 6.81 50,000,000 49,976,749
Den Danske Bank Group AS
3/10/00 5.81 (b) 25,000,000 24,997,635
3/21/00 5.83 (b) 50,000,000 49,990,431
Deutsche Bank AG
3/1/00 5.89 (b) 100,000,000 99,988,197
3/2/00 6.00 35,000,000 35,000,000
3/10/00 5.82 (b) 60,000,000 59,965,651
2/5/01 6.75 50,000,000 49,975,628
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
Dresdner Bank AG
3/23/00 5.85% (b) $ 50,000,000 $ 49,992,280
Landesbank Hessen-Thuringen
3/1/00 5.40 15,000,000 15,000,000
National Westminster Bank PLC
3/15/00 5.15 25,000,000 24,989,665
RaboBank Nederland Coop.
Central
6/5/00 5.54 75,000,000 74,990,536
7/5/00 5.80 50,000,000 49,992,567
7/12/00 5.75 65,000,000 64,988,656
Royal Bank of Canada
3/1/00 5.89 (b) 40,000,000 39,997,322
3/13/00 5.82 (b) 75,000,000 74,947,070
6/5/00 5.55 25,000,000 24,997,476
Royal Bank of Scotland PLC
5/22/00 6.00 75,000,000 75,000,000
Societe Generale
3/9/00 5.87 (b) 80,000,000 79,954,797
3/20/00 5.83 (b) 50,000,000 49,991,026
3/29/00 5.87 (b) 33,000,000 32,975,942
3/31/00 5.95 25,000,000 25,000,000
Svenska Handelsbanken AB
5/5/00 6.01 65,000,000 65,000,000
6/12/00 5.60 50,000,000 49,994,587
UBS AG
5/18/00 5.35 30,000,000 29,996,301
6/2/00 5.52 30,000,000 29,997,065
Westdeutsche Landesbank
Girozentrale
5/23/00 6.03 75,000,000 75,000,000
1,862,644,708
TOTAL CERTIFICATES OF DEPOSIT 3,499,639,781
COMMERCIAL PAPER - 43.5%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Abbey National NA
3/1/00 6.02% $ 80,000,000 $ 80,000,000
Aspen Funding Corp.
6/26/00 6.12 40,000,000 39,220,910
Asset Securitization Coop.
Corp.
3/3/00 6.02 (b) 10,000,000 10,000,000
3/3/00 6.02 (b) 50,000,000 50,000,000
3/14/00 6.17 (b) 55,000,000 55,000,000
3/22/00 5.83 128,000,000 127,566,933
Associates Corp. of North
America
3/7/00 5.91 50,000,000 49,952,083
Bayerische Landesbank
Girozentrale
4/4/00 5.91 100,000,000 99,447,500
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
3/8/00 6.04 20,000,000 19,976,900
3/14/00 5.83 65,000,000 64,863,861
4/11/00 5.92 10,000,000 9,933,261
5/12/00 6.06 10,000,000 9,880,400
Commonwealth Bank of Australia
3/10/00 6.03 10,000,000 9,985,150
ConAgra, Inc.
3/13/00 5.89 14,800,000 14,771,091
3/17/00 5.92 5,000,000 4,986,889
4/4/00 6.08 20,000,000 19,886,289
4/5/00 6.05 10,000,000 9,941,667
4/7/00 6.01 10,000,000 9,938,847
Conoco, Inc.
3/13/00 5.92 10,000,000 9,980,333
3/21/00 5.94 25,000,000 24,917,889
4/5/00 6.05 5,000,000 4,970,833
Corporate Receivables Corp.
3/17/00 5.83 5,541,000 5,526,717
4/17/00 5.92 40,000,000 39,693,978
CXC, Inc.
3/16/00 6.09 25,000,000 24,937,500
3/20/00 5.87 50,000,000 49,846,153
4/27/00 5.96 25,000,000 24,767,646
Daimler-Chrysler North
America Holding Corp.
3/6/00 6.04 10,000,000 9,991,736
3/6/00 6.05 26,000,000 25,978,694
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Daimler-Chrysler North
America Holding Corp. -
continued
3/8/00 5.93% $ 25,000,000 $ 24,972,049
3/15/00 6.09 25,000,000 24,941,667
3/29/00 5.83 25,000,000 24,887,222
5/4/00 6.01 50,000,000 49,473,778
Delaware Funding Corp.
4/24/00 5.96 60,000,000 59,469,000
Deutsche Bank Financial, Inc.
3/15/00 5.82 150,000,000 149,662,250
4/3/00 5.93 60,000,000 59,677,150
Dexia CLF Finance Co.
4/26/00 5.94 30,000,000 29,727,000
Edison Asset Securitization LLC
3/6/00 5.96 12,000,000 11,990,333
3/6/00 6.01 30,000,000 29,975,667
3/8/00 6.04 50,000,000 49,942,250
3/10/00 5.96 20,000,000 19,971,000
3/13/00 5.96 33,000,000 32,936,310
3/16/00 6.04 25,000,000 24,938,125
3/31/00 5.96 20,000,000 19,902,833
4/3/00 5.90 90,000,000 89,517,375
Enterprise Funding Corp.
4/13/00 5.90 96,064,000 95,392,753
Falcon Asset Securitization
Corp.
3/14/00 5.82 25,000,000 24,947,639
3/20/00 5.83 23,715,000 23,642,406
3/21/00 5.83 30,000,000 29,903,333
3/23/00 5.84 25,000,000 24,911,389
4/5/00 5.90 50,000,000 49,715,625
4/10/00 5.94 50,000,000 49,672,222
Finova Capital Corp.
3/1/00 5.90 25,000,000 25,000,000
Ford Motor Credit Co.
3/6/00 6.05 100,000,000 99,917,222
3/21/00 6.20 25,000,000 24,915,278
GE Capital International
Funding, Inc.
3/7/00 5.93 25,000,000 24,975,958
3/13/00 5.90 40,000,000 39,923,733
General Electric Capital Corp.
3/2/00 6.04 290,000,000 289,952,546
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
General Electric Capital
Corp. - continued
3/3/00 5.90% $ 70,000,000 $ 69,977,639
3/7/00 5.91 45,000,000 44,956,875
General Electric Capital
Services, Inc.
5/17/00 6.01 50,000,000 49,366,889
General Motors Acceptance Corp.
3/6/00 5.90 50,000,000 49,960,278
3/7/00 5.91 100,000,000 99,904,667
Goldman Sachs Group, Inc.
3/22/00 6.25 25,000,000 24,910,313
3/27/00 6.23 25,000,000 24,889,410
5/15/00 6.00 45,000,000 44,445,937
GTE Corp.
3/28/00 5.88 5,000,000 4,978,063
Heller Financial, Inc.
3/8/00 6.15 10,000,000 9,988,236
3/15/00 6.15 15,000,000 14,964,708
3/16/00 6.22 5,000,000 4,987,250
3/29/00 5.89 5,000,000 4,977,211
IBM Credit Corp.
3/21/00 5.89 25,000,000 24,920,556
J.P. Morgan & Co., Inc.
3/14/00 6.06 25,000,000 24,946,194
Kitty Hawk Funding Corp.
3/9/00 5.81 25,000,000 24,967,833
3/17/00 5.83 25,000,000 24,935,556
4/6/00 5.90 26,657,000 26,501,057
8/15/00 6.27 30,000,000 29,153,867
Lehman Brothers Holdings, Inc.
4/20/00 6.19 (b) 11,000,000 11,000,000
5/9/00 6.25 (b) 66,000,000 66,000,000
Lower Colorado River Auth.
Tax Rev.
3/8/00 6.19 45,000,000 45,000,000
8/2/00 6.42 10,000,000 10,000,000
Marsh USA, Inc.
3/21/00 5.92 40,000,000 39,872,222
MCI WorldCom, Inc.
3/6/00 5.89 15,000,000 14,987,792
3/21/00 5.89 10,000,000 9,967,444
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Nationwide Building Society
3/8/00 6.04% $ 15,000,000 $ 14,982,646
New Center Asset Trust
3/20/00 6.15 25,000,000 24,920,174
3/20/00 6.27 25,000,000 24,918,590
4/10/00 5.91 65,000,000 64,577,500
5/15/00 6.03 15,000,000 14,815,000
Newport Funding Corp.
3/14/00 5.84 25,000,000 24,947,549
6/21/00 6.12 75,000,000 73,601,400
Norfolk Southern Corp.
3/1/00 5.99 10,000,000 10,000,000
3/13/00 6.00 25,000,000 24,950,250
Norwest Financial, Inc.
3/8/00 6.13 25,000,000 24,970,931
Park Avenue Receivables Corp.
3/10/00 5.84 24,755,000 24,719,043
3/14/00 5.83 25,000,000 24,947,639
3/20/00 5.83 55,545,000 55,374,971
3/28/00 5.84 13,800,000 13,739,867
PHH Corp.
3/1/00 6.03 10,000,000 10,000,000
Preferred Receivables Funding
Corp.
4/6/00 5.90 50,000,000 49,707,500
Rohm & Haas Co.
3/8/00 6.35 17,000,000 16,979,671
Svenska Handelsbanken, Inc.
3/2/00 6.01 50,000,000 49,991,778
The Bear Stearns Companies,
Inc.
4/17/00 5.94 30,000,000 29,769,700
Triple-A One Funding Corp.
3/15/00 5.83 59,023,000 58,889,870
Tyco International Group SA
3/1/00 6.03 10,000,000 10,000,000
3/8/00 6.71 10,000,000 9,987,167
3/8/00 6.72 35,000,000 34,955,083
3/9/00 6.72 20,000,000 19,970,667
4/3/00 6.16 5,000,000 4,972,042
Unifunding, Inc.
3/17/00 6.00 120,000,000 119,688,533
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Westdeutsche Landesbank
Girozentrale
5/24/00 6.04% $ 100,000,000 $ 98,611,667
Windmill Funding Corp.
3/13/00 5.83 80,000,000 79,845,333
3/14/00 5.86 75,000,000 74,842,375
3/22/00 5.83 25,000,000 24,915,417
3/24/00 5.84 48,700,000 48,519,228
TOTAL COMMERCIAL PAPER 4,374,488,961
FEDERAL AGENCIES - 1.9%
FEDERAL HOME LOAN BANK - 1.9%
Discount Notes - 1.9%
8/9/00 6.06 200,000,000 194,740,667
BANK NOTES - 9.5%
American Express Centurion Bank
3/1/00 5.95 (b) 50,000,000 50,000,000
Bank of America NA
5/18/00 6.00 100,000,000 100,000,000
6/21/00 6.10 75,000,000 75,000,000
Bank One NA, Chicago
4/19/00 6.02 (b) 50,000,000 49,977,814
4/24/00 6.00 (b) 60,000,000 59,965,370
5/30/00 6.00 50,000,000 50,000,000
Comerica Bank, Detroit
3/13/00 5.93 (b) 50,000,000 49,985,627
First National Bank, Chicago
7/12/00 5.75 100,000,000 99,982,548
First Union National Bank,
North Carolina
3/1/00 5.95 (b) 34,000,000 34,000,000
3/24/00 5.85 (b) 80,000,000 80,000,000
4/4/00 6.09 (b) 75,000,000 75,000,000
4/26/00 6.04 (b) 41,000,000 41,000,000
Fleet National Bank
3/1/00 5.96 (b) 50,000,000 49,991,213
BANK NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Key Bank NA
3/16/00 6.00% (b) $ 58,000,000 $ 58,000,000
Mellon Bank NA, Pittsburgh
3/1/00 5.88 (b) 24,000,000 23,997,648
NationsBank NA
3/1/00 5.90 (b) 25,000,000 24,998,835
3/1/00 5.91 (b) 30,000,000 29,998,731
TOTAL BANK NOTES 951,897,786
MEDIUM-TERM NOTES - 5.5%
American Telephone & Telegraph
3/7/00 5.95 (b) 130,000,000 130,000,000
Bank of Scotland Treasury
Services PLC
4/19/00 6.04 (b) 35,000,000 35,001,190
Centex Home Mortgage LLC
3/20/00 6.02 (a)(b) 50,000,000 50,000,000
CIESCO LP
3/15/00 5.87 (b) 50,000,000 49,996,282
CIT Group, Inc.
3/1/00 5.95 (b) 40,000,000 39,993,254
Ford Motor Credit Co.
3/1/00 5.95 (b) 100,000,000 100,000,000
5/23/00 6.09 (b) 100,000,000 99,967,142
General Electric Capital Corp.
4/12/00 5.98 (b) 24,000,000 24,000,000
5/12/00 6.05 (b) 30,000,000 30,000,000
TOTAL MEDIUM-TERM NOTES 558,957,868
SHORT-TERM NOTES - 3.9%
Jackson National Life
Insurance Co.
4/2/00 6.16 (b)(c) 36,000,000 36,000,000
Monumental Life Insurance Co.
3/1/00 6.00 (b)(c) 10,000,000 10,000,000
3/1/00 6.03 (b)(c) 45,000,000 45,000,000
5/1/00 6.21 (b)(c) 55,000,000 55,000,000
SHORT-TERM NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
New York Life Insurance Co.
3/1/00 6.23% (b)(c) $ 25,000,000 $ 25,000,000
4/3/00 6.28 (b)(c) 23,000,000 23,000,000
Pacific Life Insurance Co.
3/9/00 6.21 (b)(c) 25,000,000 25,000,000
RACERS Series 1999 16MM,
3/2/00 5.91 (a)(b) 48,000,000 48,000,000
SMM Trust Series 1999 E,
4/5/00 6.02 (a)(b) 19,000,000 19,000,000
SMM Trust Series 1999 I,
5/26/00 6.11 (a)(b) 26,000,000 26,000,000
Strategic Money Market Trust
Series 1999 A6,
4/13/00 6.15 (a)(b) 86,000,000 86,000,000
TOTAL SHORT-TERM NOTES 398,000,000
TIME DEPOSITS - 0.5%
Chase Manhattan Bank USA NA
3/1/00 5.88 50,000,000 50,000,000
</TABLE>
REPURCHASE AGREEMENTS - 0.6%
MATURITY AMOUNT
In a joint trading account $ 6,359,035 6,358,000
(U.S. Government
Obligations) dated 2/29/00
due 3/1/00 At 5.86%
With Morgan Stanley & Co. At 50,008,333 50,000,000
6%, dated 2/29/00 due 3/1/00
(Commercial Paper
Obligations) (principal
amount $51,500,000) 0%,
3/14/00 - 3/22/00
TOTAL REPURCHASE AGREEMENTS 56,358,000
TOTAL INVESTMENT PORTFOLIO - 10,084,083,063
100.2%
NET OTHER ASSETS - (0.2)% (24,932,200)
NET ASSETS - 100% $ 10,059,150,863
Total Cost for Income Tax Purposes $ 10,084,083,063
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 $229,000,000 or 2.3% 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.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE COST
Jackson National Life 7/6/99 $ 36,000,000
Insurance Co. 6.16%, 4/2/00
Monumental Life Insurance 7/31/98 $ 10,000,000
Co.: 6%, 3/1/00
6.03%, 3/1/00 3/12/99 $ 45,000,000
6.21%, 5/1/00 1/28/00 $ 55,000,000
New York Life Insurance Co.: 8/13/99 $ 25,000,000
6.23%, 3/1/00
6.28%, 4/3/00 12/20/99 $ 23,000,000
Pacific Life Insurance Co. 8/31/99 $ 25,000,000
6.21%, 3/9/00
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
FEBRUARY 29, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 10,084,083,063
value (including repurchase
agreements of $56,358,000) -
See accompanying schedule
Receivable for fund shares 40,417,211
sold
Interest receivable 58,497,054
TOTAL ASSETS 10,182,997,328
LIABILITIES
Payable to custodian bank $ 146,453
Payable for investments 35,253,539
purchased
Payable for fund shares 84,906,442
redeemed
Distributions payable 52,284
Accrued management fee 3,420,546
Other payables and accrued 67,201
expenses
TOTAL LIABILITIES 123,846,465
NET ASSETS $ 10,059,150,863
Net Assets consist of:
Paid in capital $ 10,059,508,579
Accumulated undistributed net (357,716)
realized gain (loss) on
investments
NET ASSETS, for $ 10,059,150,863
10,059,436,569 shares
outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($10,059,150,863
(divided by) 10,059,436,569
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED FEBRUARY
29, 2000 (UNAUDITED)
INTEREST INCOME $ 301,135,871
EXPENSES
Management fee $ 21,795,414
Non-interested trustees' 16,827
compensation
Total expenses before 21,812,241
reductions
Expense reductions (1,725,797) 20,086,444
NET INTEREST INCOME 281,049,427
NET REALIZED GAIN (LOSS) ON (102,780)
INVESTMENTS
NET INCREASE IN NET ASSETS $ 280,946,647
RESULTING FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED FEBRUARY 29, YEAR ENDED AUGUST 31, 1999
2000 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 281,049,427 $ 448,397,808
Net realized gain (loss) (102,780) 173,790
NET INCREASE (DECREASE) IN 280,946,647 448,571,598
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (281,049,427) (448,397,808)
from net interest income
Share transactions at net 10,238,237,651 16,462,325,115
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 281,024,919 448,025,762
distributions from net
interest income
Cost of shares redeemed (10,770,484,275) (14,521,593,074)
NET INCREASE (DECREASE) IN (251,221,705) 2,388,757,803
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) (251,324,485) 2,388,931,593
IN NET ASSETS
NET ASSETS
Beginning of period 10,310,475,348 7,921,543,755
End of period $ 10,059,150,863 $ 10,310,475,348
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS ENDED FEBRUARY 29, YEARS ENDED AUGUST 31,
2000
(UNAUDITED) 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment .027 .049 .053 .052 .053 .054
Operations Net interest
income
Less Distributions
From net interest income (.027) (.049) (.053) (.052) (.053) (.054)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 2.72% 4.97% 5.46% 5.37% 5.40% 5.57%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 10,059 $ 10,310 $ 7,922 $ 6,227 $ 5,327 $ 4,350
(in millions)
Ratio of expenses to average .42% A .42% .42% .42% .37% D .42%
net assets
Ratio of expenses to average .39% A, E .38% E .39% E .39% E .34% E .42%
net assets after expense
reductions
Ratio of net interest income 5.41% A 4.85% 5.33% 5.21% 5.31% 5.49%
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 29, 2000 (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 (the 1940 Act), as amended, 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, Federal Agency,
and other obligations found satisfactory by FMR are transferred to an
account of the fund, or to the Joint Trading Account, at a bank
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
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.
INTERFUND LENDING PROGRAM. Pursuant to an Exemptive Order issued by
the SEC, the fund, along with other registered investment companies
having management contracts with FMR, may participate in an interfund
lending program. This program provides an alternative credit facility
allowing the fund to borrow from, or lend money to, other
participating funds.
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 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 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 $219,000,000 or 2.2% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a fee
that is computed daily at an annual rate of .42% of the fund's average
net assets. FMR pays all other expenses, except the compensation of
the non-interested Trustees and certain exceptions such as interest,
taxes, brokerage commissions and extraordinary expenses. 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
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MONEY MARKET INSURANCE - CONTINUED
entered into insurance agreements with FIDFUNDS Mutual Limited
(FIDFUNDS), an affiliated mutual insurance company. 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.
4. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a lender.
The average daily loan balance during the period for which loans were
outstanding amounted to $ 6,013,000. The weighted average interest
rate was 5.38%. Interest earned from the interfund lending program
amounted to $1,796 and is included in interest income on the Statement
of Operations. At period end there were no interfund loans
outstanding.
5. EXPENSE REDUCTIONS.
Through an arrangement with the fund's transfer agent, 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 $1,725,797 under this arrangement.
INVESTMENT ADVISER
Fidelity Management &
Research Company
Boston, MA
SUB-ADVISER
Fidelity Investments Money
Management, Inc.
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
Robert A. Dwight, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
Maria C. Dwyer, 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
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
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
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
