FIDELITY
(registered trademark)
CASH RESERVES
SEMIANNUAL REPORT
MAY 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 9 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 24 Footnotes to the financial
statements.
REPORT OF INDEPENDENT 26 The auditor's opinion.
ACCOUNTANTS
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. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
No one wants to pay more taxes than they have to. But a recent survey of
500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed
that few people took steps to reduce their taxes under the new tax laws
that went into effect last year. In fact, many people were not completely
aware of the changes until they filed their 1993 tax returns.
Whether or not you're someone whose tax bill increased as a result of these
changes, it may make sense to consider ways to keep more of what you earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments, either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your 1994 tax
bill. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center. We look
forward to talking with you.
Best regards,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects both the change in a fund's share
price over a given period, and reinvestment of
its dividends (or income). Yield measures the income paid by a fund. Since
a money market fund tries to maintain
a $1 share price, yield is an important measure of performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Fidelity Cash Reserves 1.53% 2.98% 29.81% 87.37%
Consumer Price Index 1.17% 2.29% 19.14% 42.65%
Average All Taxable
Money Market Fund 1.46% 2.81% 28.58% 83.86%
CUMULATIVE TOTAL RETURNS reflect actual performance over a set period - in
this case, six months, one year, five years, or ten years. For example, if
you invested $1,000 in a fund that had a 5% return over the past year, you
would end up with $1,050. Comparing the fund's performance to the consumer
price index helps show how your investment did compared to inflation. To
measure how the fund stacked up against its peers, you can compare its
return to the average taxable money market fund's total return. This
average currently reflects the performance of 569 money market funds
tracked by IBC/Donoghue's MONEY FUND REPORT.(registered trademark)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Cash Reserves 2.98% 5.36% 6.48%
Consumer Price Index 2.29% 3.57% 3.62%
Average All Taxable
Money Market Fund 2.81% 5.15% 6.28%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
YIELDS
5/31/93 8/31/93 11/30/93 2/28/94 5/31/94
2.83% 2.81% 2.87% 2.87% 3.50%
Fidelity Cash Reserves
Average All Taxable 2.62% 2.64% 2.69% 2.79% 3.51%
Money Market Fund
2.49% 2.42% 2.35% 2.29% 2.35%
MMDA
Row: 1, Col: 1, Value: 2.83
Row: 1, Col: 2, Value: 2.62
Row: 1, Col: 3, Value: 2.49
Row: 2, Col: 1, Value: 2.81
Row: 2, Col: 2, Value: 2.64
Row: 2, Col: 3, Value: 2.42
Row: 3, Col: 1, Value: 2.87
Row: 3, Col: 2, Value: 2.69
Row: 3, Col: 3, Value: 2.35
Row: 4, Col: 1, Value: 2.87
Row: 4, Col: 2, Value: 2.79
Row: 4, Col: 3, Value: 2.29
Row: 5, Col: 1, Value: 3.5
Row: 5, Col: 2, Value: 3.51
Row: 5, Col: 3, Value: 2.35
Fidelity Cash
Reserves
Average All
Taxable Money
Market Fund
MMDA
4% -
3% -
2% -
1% -
0%
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. This
would have been lower if Fidelity had not reimbursed certain fund expenses.
This is compared to similar yields for the average all taxable money market
fund and the average bank money market deposit account (MMDA). Figures for
the average taxable money market fund are from the IBC/Donoghue's MONEY
FUND REPORT.(registered trademark) The MMDA average is supplied by BANK
RATE MONITOR.(double dagger)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
There are some important
differences between a bank
money market deposit
account (MMDA) and a
money market fund. First, the
U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money fund will maintain a $1
share price. Second, a money
market fund returns to its
shareholders income earned
by the fund's investments
after expenses. This is in
contrast to banks, which set
their MMDA rates periodically
based on current interest
rates, competitors' rates, and
internal criteria.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Bob Litterst,
Portfolio Manager of Cash Reserves
Q. BOB, WHAT HAPPENED IN THE SHORT-TERM MARKET THE PAST SIX MONTHS?
A. There were important changes in the Federal Reserve's monetary policy,
and as a result short-term interest rates fluctuated considerably. Early in
the period, rates rose somewhat, reflecting year-end rate pressures, but
they fell back in January as we entered the new year and investors
scrambled to reinvest their early January maturities. That changed
dramatically on February 4. After 17 months of stable monetary policy, the
Federal Reserve acted to raise short-term interest rates for the first time
in five years. They raised rates four times in four months in an effort to
head off inflationary pressures that could build up if the economy
continued to grow too rapidly relative to its potential. As a result, the
Federal funds rate ranged from 3% to 4.25% during the period. Yields on
six-month Treasury bills ranged from 3.15% to 4.90%, and the fund's yield
was as low as 2.83% on February 17, 1994 and as high as 3.50% on May 31,
1994 .
Q. HOW DID YOU POSITION THE FUND BEFORE THE INCREASE IN RATES?
A. In late 1993, I took advantage of year-end pressures that tend to push
short-term rates outside their normal ranges. These opportunities tend to
present themselves around financial statement dates, particularly at year
end, because of bank and corporate balance sheet constraints. I increased
the fund's average maturity to around 75 days so that the fund could
capture those higher rates for a longer period.
Q. WHAT DID YOU DO AFTER THE FEDERAL RESERVE INCREASED INTEREST RATES?
A. When the Fed moved to boost rates in February, we sold securities with
longer maturities such as six-month Treasury bills and discount notes, and
reduced the fund's average maturity from around 76 days on January 31 to 63
days one month later. That figure continued to decline, and stood at around
48 days on May 31. Our neutral maturity is around 40 to 50 days.
Q. WHY DIDN'T YOU REDUCE THE AVERAGE MATURITY EVEN MORE AS RATES CLIMBED?
A. When the Fed began raising rates, the short-term yield curve began to
steepen to reflect the possibility of additional future rate increases.
Those yields out on the curve became attractive compared to those on
extremely short maturity securities.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 1994, was 3.50%, compared to 2.87%
at the end of November. For the six months ended May 31, the fund's total
return was 1.53%. That beat the 1.46% average total return for all taxable
money market funds tracked by IBC/Donoghue.
Q. WHAT'S YOUR OUTLOOK FOR THE SHORT-TERM MARKET?
A. After the Federal Reserve's fourth interest rate increase in May,
policymakers at the Fed indicated that for the time being they had achieved
their goal of essentially removing through higher short-term rates, the
degree of monetary accommodation which prevailed throughout 1993. Simply
stated, the Fed will likely pause for a brief period to assess the affect
of the rate increases already implemented. After a brief hiatus, it is
likely that fundamental factors will induce the fed to resume the process
of raising short-term interest rates. Meanwhile, I plan to maintain the
fund's average maturity at around 40 to 50 days, though I will move toward
the longer end of that range when I spot opportunities to increase the
fund's yield without taking undue interest rate risk.
FUND FACTS
GOAL: income and share price
stability by investing in high
quality, short-term investments
START DATE: May 10, 1979
SIZE: as of May 31, 1994,
more than $13.2 billion
MANAGER: Robert Litterst,
since January 1992; manager,
Capital
Reserves Money Market,
Fidelity VIP: Money Market
Portfolio, and Fidelity Money
Market Trust:
Retirement Money Market,
since January 1992; joined
Fidelity in 1991
(checkmark)
MONEY MARKETS AND
DERIVATIVES:
The word "derivatives" covers
a wide range of financial
agreements, of varying
degrees of complexity, that
have market values based on
security or market indices. All
"derivative" securities in
Fidelity's money market funds
are designed to have the price
characteristics of typical
money market securities.
During the recent Federal
Reserve Board interest rate
increases, all Fidelity money
market holdings performed as
designed and the funds
maintained a stable share
price of $1.00.
The more complex of these
instruments, such as floating
rate notes with unusual and
complex floating rate
formulas, frequently have too
much price volatility to be
appropriate investments for
money market funds. Many of
them do not offer the degree
of price stability Fidelity
believes is required in order
for its funds to maintain a
stable $1.00 share price.
Therefore, despite their
frequent higher yields at the
time they are sold, Fidelity
has not purchased these
volatile securities. While this
may sometimes have caused
Fidelity money market funds
to have lower gross yields
than certain other funds,
Fidelity believes its investors
value prudence as well as
performance.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
5/31/94 11/30/93 5/31/93
0 - 30 58 28 38
31 - 90 20 46 28
91 - 180 18 18 25
181 - 397 4 8 9
WEIGHTED AVERAGE MATURITY
5/31/94 11/30/93 5/31/93
Fidelity Cash Reserves 48 days 79 days 73 days
Average All Taxable
Money Market Fund* 44 days 61 days 64 days
ASSET ALLOCATION
AS OF MAY 31, 1994 AS OF NOVEMBER 30, 1993
Row: 1, Col: 1, Value: 44.0
Row: 1, Col: 2, Value: 42.0
Row: 1, Col: 3, Value: 7.0
Row: 1, Col: 4, Value: 7.0
Row: 1, Col: 1, Value: 28.0
Row: 1, Col: 2, Value: 34.0
Row: 1, Col: 3, Value: 22.0
Row: 1, Col: 4, Value: 16.0
Bank CDs, BAs,
TDs, and notes 44%
Commercial
paper 42%
Government
securities 7%
Other 7%
Bank CDs, BAs,
TDs, and notes 28%
Commercial
paper 34%
Government
securities 22%
Other 16%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(Registered trademark)
INVESTMENTS MAY 31, 1994
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 0.2%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
DOMESTIC BANKERS ACCEPTANCE - 0.1%
Sakura Bank, Ltd.
6/14/94 4.40% $ 20,000 $ 19,968
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.1%
Bank of Tokyo
6/20/94 4.31 2,000 1,996
Dai-Ichi Kangyo Bank, Ltd.
7/11/94 4.42 1,200 1,194
Fuji Bank, Ltd.
7/14/94 4.43 3,600 3,581
7/18/94 4.43 5,400 5,369
12,140
TOTAL BANKERS' ACCEPTANCES 32,108
CERTIFICATES OF DEPOSIT - 10.8%
DOMESTIC CERTIFICATES OF DEPOSIT - 0.2%
Swedish National Housing Finance Corp. (a)
8/23/94 4.53 33,000 33,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 8.3%
Banque Nationale de Paris
7/19/94 3.92 30,000 29,976
Credit Lyonnais
6/1/94 4.44 80,000 80,000
7/1/94 4.40 20,000 20,001
Fuji Bank, Ltd.
6/1/94 3.90 50,000 50,000
HYPO U.S. Finance
9/1/94 3.90 50,000 50,000
Industrial Bank of Japan, Ltd.
6/13/94 4.37 70,000 70,000
Mitsubishi Bank, Ltd.
6/22/94 3.45 25,000 25,000
7/7/94 3.45 110,000 110,000
10/18/94 4.60 13,000 12,945
National Bank of Canada
7/11/94 4.65 55,000 55,000
Sakura Bank, Ltd.
7/5/94 4.37 20,000 20,000
7/5/94 4.37 50,000 50,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Sanwa Bank, Ltd.
6/30/94 3.41% $ 25,000 $ 25,000
7/20/94 4.23 125,000 125,000
10/19/94 4.60 5,000 5,000
Societe Generale
6/1/94 3.75 80,000 80,000
8/17/94 4.30 40,000 40,000
9/1/94 4.00 127,000 127,000
Sumitomo Bank, Ltd.
6/7/94 3.43 30,000 30,000
6/20/94 4.05 40,000 40,000
7/27/94 4.40 35,000 34,988
7/29/94 4.40 25,000 24,991
1,104,901
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 2.3%
Mitsubishi Bank, Ltd.
11/16/94 5.25 50,000 50,002
NBD Bank, N.A.
7/29/94 3.87 25,000 24,980
Sumitomo Bank, Ltd.
6/8/94 3.82 130,000 130,000
6/13/94 3.82 50,000 50,000
6/20/94 3.31 20,000 20,001
7/6/94 3.42 25,000 25,002
299,985
TOTAL CERTIFICATES OF DEPOSIT 1,437,886
COMMERCIAL PAPER - 42.1%
American Brands, Inc.
7/12/94 4.58 50,000 49,741
Associates Corporation of North America
6/9/94 3.99 55,000 54,951
6/14/94 4.37 37,000 36,942
7/25/94 4.43 37,000 36,756
B.B.V. Finance (Delaware), Inc.
7/1/94 4.37 32,000 31,884
BHF Finance (Delaware), Inc.
6/17/94 4.31 30,000 29,943
6/20/94 4.32 38,000 37,914
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Bear Stearns Companies Inc.
6/6/94 4.33% $ 20,000 $ 19,988
7/14/94 4.42 40,000 39,790
7/27/94 4.43 50,000 49,658
Beneficial Corporation
6/7/94 3.99 65,000 64,957
Berliner Handels-und Frankfurter Bank
6/3/94 4.11 100,000 99,977
Bradford & Bingley Building Society
6/14/94 3.99 30,000 29,957
Budget Funding Corporation
6/9/94 4.41 20,000 19,980
CIT Group Holdings, Inc.
6/6/94 3.99 30,000 29,983
6/7/94 3.99 40,000 39,973
6/28/94 4.18 75,000 74,767
7/21/94 4.75 35,000 34,771
7/26/94 4.43 39,000 38,738
7/27/94 4.43 25,000 24,829
9/6/94 3.53 30,000 29,721
Commercial Credit Company
6/10/94 4.02 25,000 24,975
7/25/94 4.43 12,000 11,921
Concord Leasing, Inc. (LOC Hong Kong & Shanghai Banking Corp.)
6/9/94 4.00 20,000 19,982
8/30/94 4.60 25,000 24,716
CoreStates Capital Corp. (a)
6/15/94 4.38 25,000 25,000
Dean Witter, Discover & Co.
6/1/94 3.92 35,000 35,000
6/14/94 4.02 10,000 9,985
6/27/94 4.31 50,000 49,845
7/11/94 4.64 30,000 29,847
Den Danske Corporation, Inc.
6/30/94 3.79 25,000 24,925
Eastman Kodak
6/7/94 4.36 10,000 9,993
6/8/94 4.57 13,000 12,988
6/13/94 4.36 50,000 49,927
6/14/94 4.36 50,000 49,921
Electronic Data Systems Corporation
6/1/94 4.36 10,000 10,000
6/8/94 3.82 15,000 14,989
6/13/94 3.87 19,000 18,976
Ford Motor Credit Corporation
6/8/94 3.95 155,000 154,882
6/9/94 4.41 16,400 16,384
6/13/94 3.95 45,000 44,941
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Ford Motor Credit Corporation - continued
6/14/94 4.37% $ 40,000 $ 39,937
7/6/94 4.43 100,000 99,572
7/7/94 4.43 100,000 99,560
9/26/94 4.75 150,000 147,723
Ford Motor Credit PLC, UK
6/9/94 4.41 50,000 49,951
Grand Metropolitan Investment Corporation
10/24/94 5.12 43,000 42,134
11/17/94 4.90 38,500 37,638
GTE Corporation
6/30/94 4.31 100,000 99,654
General Electric Capital Corporation
6/10/94 3.78 (a) 50,000 50,000
6/15/94 4.08 (a) 30,000 30,000
9/7/94 3.51 150,000 148,599
9/8/94 3.51 50,000 49,528
9/19/94 4.09 67,000 66,181
10/5/94 3.43 50,000 49,414
10/6/94 3.43 50,000 49,409
12/20/94 4.85 50,000 48,681
12/21/94 4.85 50,000 48,675
General Motors Acceptance Corporation
6/1/94 3.75 25,000 25,000
6/1/94 3.75 50,000 50,000
6/6/94 3.89 24,000 23,987
6/6/94 4.12 50,000 49,971
6/13/94 4.50 50,000 49,925
6/13/94 4.50 5,000 4,993
6/15/94 4.45 50,000 49,914
6/27/94 4.00 284,000 283,196
7/26/94 4.49 24,000 23,836
Goldman Sachs Group, L.P. (The)
7/5/94 4.00 100,000 99,626
7/6/94 4.00 20,000 19,923
10/25/94 3.42 25,000 24,661
Government Development Bank of Puerto Rico
6/17/94 4.04 10,000 9,982
Government of Canada
10/18/94 4.50 100,000 98,301
Hanson Finance (UK), PLC
6/6/94 3.85 36,000 35,981
6/20/94 4.42 68,000 67,842
Household Finance Corporation
6/1/94 3.81 50,000 50,000
6/1/94 4.35 25,000 25,000
6/20/94 4.05 25,000 24,947
6/21/94 4.03 40,000 39,911
7/5/94 4.04 40,000 39,849
8/23/94 4.55 20,000 19,793
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
IBM Corporation
6/9/94 4.42% $ 83,000 $ 82,919
6/13/94 4.41 31,500 31,454
6/13/94 4.42 30,000 29,956
6/14/94 4.41 50,000 49,921
7/18/94 4.48 50,000 49,709
IBM Credit Corporation
6/13/94 4.42 33,000 32,952
ITT Corporation
6/13/94 3.82 26,000 25,967
7/18/94 4.45 28,000 27,838
8/15/94 4.60 7,000 6,934
ITT Financial
6/1/94 4.00 32,000 32,000
6/16/94 4.42 100,000 99,816
7/11/94 4.64 50,000 49,744
7/26/94 4.48 25,000 24,830
Merrill Lynch & Co., Inc.
6/1/94 3.80 25,000 25,000
7/12/94 4.58 20,000 19,896
Morgan Stanley Group, Inc.
7/1/94 4.58 25,000 24,905
7/1/94 4.58 50,000 49,810
7/6/94 4.63 150,000 149,328
Nationwide Building Society
6/13/94 4.42 27,000 26,960
7/25/94 4.43 25,000 24,835
New Center Asset Trust
6/9/94 4.42 53,000 52,948
7/20/94 4.45 10,000 9,940
7/20/94 4.45 50,000 49,699
7/28/94 4.43 20,000 19,861
New South Wales Treasury Corp.
8/30/94 3.90 46,000 45,560
Norwest Corporation
6/2/94 4.00 10,000 9,999
Ontario Hydro
7/6/94 4.01 75,000 74,711
PHH Corporation
6/14/94 4.31 20,000 19,969
6/14/94 4.33 38,000 37,941
PNC Financial/PNC Funding
10/11/94 4.34 75,000 73,831
Preferred Receivables Funding Corporation
6/7/94 4.01 40,000 39,973
6/10/94 4.39 20,000 19,978
6/13/94 4.38 12,450 12,432
6/13/94 4.39 50,000 49,927
6/14/94 4.38 25,000 24,961
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Prudential Home Mortgage Company
6/13/94 4.34% $ 20,000 $ 19,971
7/25/94 4.43 50,000 49,670
Smith Barney Shearson, Inc.
7/21/94 4.43 25,000 24,847
7/26/94 4.45 25,000 24,831
Sears Credit Corp. - B
6/13/94 4.39 28,000 27,959
Sears Roebuck Acceptance Corp.
6/6/94 4.16 17,000 16,990
6/7/94 4.49 45,000 44,966
6/20/94 4.36 39,000 38,910
Texaco Inc.
6/1/94 4.40 30,300 30,300
7/29/94 4.43 25,000 24,823
UNOCAL Corp.
6/7/94 4.38 5,000 4,996
6/15/94 4.41 12,000 11,979
WCP Funding
6/13/94 4.39 43,700 43,636
Whirlpool Corporation
7/13/94 4.53 5,000 4,974
Whirlpool Financial Corporation
6/8/94 4.12 12,000 11,990
6/16/94 3.82 23,000 22,964
7/22/94 4.43 10,000 9,938
TOTAL COMMERCIAL PAPER 5,607,959
FEDERAL AGENCIES - 5.7%
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 0.6%
8/12/94 4.51 20,000 19,822
8/17/94 4.54 55,014 54,486
74,308
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 3.8%
10/4/94 4.23 45,000 44,351
10/4/94 4.27 25,000 24,637
10/26/94 4.45 180,000 176,803
10/27/94 4.50 260,000 255,297
501,088
FEDERAL AGENCIES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
INTERNATIONAL BANK OF RECONSTRUCTION AND DEVELOPMENT - DISCOUNT NOTES -
0.9%
12/27/94 3.54% $ 40,000 $ 39,206
12/30/94 3.57 80,000 78,374
117,580
TENNESSEE VALLEY AUTHORITY - DISCOUNT NOTES - 0.4%
7/21/94 4.43 55,000 54,664
TOTAL FEDERAL AGENCIES 747,640
U.S. TREASURY OBLIGATIONS - 1.5%
U.S. TREASURY BILLS
1/12/95 3.52 80,000 78,297
1/12/95 3.55 76,000 74,371
1/12/95 3.59 50,000 48,916
201,584
BANK NOTES - 4.0%
Bank of New York
6/6/94 3.78 20,000 20,000
6/6/94 3.78 50,000 50,000
Fifth Third Bank, Cincinnati
6/6/94 3.95 60,000 59,999
7/5/94 4.35 50,000 49,999
7/7/94 4.33 24,000 23,999
First National Bank of Boston
8/22/94 4.58 60,000 60,000
Old Kent Bank - Southwest
6/15/94 4.39 25,000 25,000
PNC Bank, N.A.
6/10/94 3.46 45,000 44,997
11/10/94 4.74 40,000 39,794
1/20/95 3.69 50,000 49,956
Trust Company Bank
1/31/95 3.75 61,000 60,869
1/31/95 3.78 50,000 49,893
TOTAL BANK NOTES 534,506
MEDIUM-TERM NOTES (A) - 9.4%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Abbey National PLC, UK
6/24/94 4.05% $ 45,000 $ 45,000
Abbey National Treasury Service
9/30/94 3.87 435,000 435,000
Bank of New York
6/1/94 4.97 30,000 29,987
Comerica Bank-Detroit
6/1/94 4.97 60,000 59,987
General Motors Acceptance Corporation
6/23/94 4.12 5,000 5,005
8/7/94 4.67 93,000 93,000
Goldman Sachs Group, L.P. (The)
6/1/94 4.89 27,000 27,000
6/16/94 (c) 3.50 95,000 95,000
9/1/94 3.50 94,000 94,000
12/13/94 4.97 35,000 34,448
Huntington National Bank
6/1/94 4.94 50,000 49,917
Norwest Corporation
9/15/94 3.89 114,000 114,000
PHH Corporation
6/1/94 4.95 50,000 50,000
Society National Bank
6/1/94 4.97 70,000 69,969
6/2/94 4.54 49,945 49,945
TOTAL MEDIUM-TERM NOTES 1,252,258
SHORT-TERM NOTES (A) - 11.3%
CSA Funding - A
6/7/94 4.59 22,000 22,000
CSA Funding - B
6/7/94 4.59 6,000 6,000
CSA Funding - C
6/7/94 4.59 22,000 22,000
J.P. Morgan Securities
6/1/94 4.60 190,000 190,000
6/1/94 4.62 150,000 150,000
Morgan Stanley Group, Inc.
6/1/94 4.58 100,000 100,000
Norwest Corporation
6/1/94 4.36 78,000 78,000
PepsiCo.
6/1/94 4.44 60,000 60,000
SMM Trust Company (1993-D)(b)
7/28/94 4.28 79,000 79,000
SHORT-TERM NOTES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
SMM Trust Company (1994-A)(b)
6/18/94 3.89% $ 395,000 $ 395,000
6/18/94 3.99 22,000 21,984
SMM Trust Company (1994-E)(b)
7/13/94 4.03 66,000 66,000
7/13/94 4.11 19,986 18,986
Sweden, Kingdom of - A
6/23/94 4.25 72,000 72,000
Sweden, Kingdom of - B
6/23/94 4.62 72,000 72,000
Sweden, Kingdom of - C
6/23/94 3.94 71,500 71,500
Swedish National Housing Finance Corp.
8/23/94 4.40 32,000 32,000
8/23/94 4.65 32,000 32,000
U.S. Leasing International, Inc.
6/16/94 3.84 15,000 15,031
SHORT-TERM NOTES 1,503,501
TIME DEPOSITS - 8.0%
Bank of Nova Scotia
6/13/94 4.37 105,000 105,000
Bank of Tokyo
6/1/94 4.34 100,000 100,000
Fuji Bank, Ltd.
6/1/94 4.34 350,000 350,000
Mitsubishi Bank, Ltd.
6/1/94 4.37 170,000 170,000
6/1/94 4.37 100,000 100,000
Sakura Bank, Ltd.
6/8/94 4.25 130,000 130,000
Sumitomo Bank, Ltd.
6/1/94 4.31 100,000 100,000
TOTAL TIME DEPOSITS 1,055,000
MUNICIPAL BONDS (A) - 0.3%
Louisiana Public Facilities Authority
7/5/94 4.37 25,000 25,000
New York Public Housing Authority
6/28/94 3.98 20,055 20,055
TOTAL MUNICIPAL BONDS 45,055
REPURCHASE AGREEMENTS - 6.7%
MATURITY AMOUNT VALUE (NOTE 1)
(000S) (000S)
WITH FIRST BOSTON CORPORATION
At 4.26%, dated 5/24/94 due 6/7/94: $ 230,381 $ 230,000
U.S. Goovervment Obligations
(principal amount $236,031)
0% to 9%, 3/1/2 to 9/1/23
At 4.25%, dated 5/25/94 due 6/8/94: 35,058 35,000
U.S. Treasury Obligations
(principal amount $37,591)
0% to 12.50%, 2/1/9 to 9/1/23
At 4.26%, dated 5/25/94 due 6/8/94: 400,663 400,000
U.S. Treasury Obligations
(principal amount $413,108)
0% to 11%, 3/1/8 to 2/1/24
WITH PAINE WEBBER, INC.
At 4.30%, dated 5/26/94 due 6/20/94: 100,098 99,800
U.S. Government Obligations
(principal amount $102,929)
4.137% to 8.956%, 1/1/20 to 10/1/23
In a joint trading account
(U.S. Treasury Obligations)
dated 5/31/94, due 6/1/94
(Note 2)
At 4.26% 2,019 2,019
At 4.37% 125,371 125,356
TOTAL REPURCHASE AGREEMENTS 892,175
TOTAL INVESTMENTS - 100% $ 13,309,672
Total Cost for Income Tax Purposes $ 13,309,672
LEGEND
(1.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(2.) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST (000'S)
SMM Trust
Company:
(1993-D) 10/28/93 $ 79,000
(1994-A) 3/18/94 $ 395,000(1994-A) 5/12/94 $ 21,985(1994-E) 4/13/94 $
66,000(1994-E) 5/23/94 $ 18,987
(3.) 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 $95,000,000 or 0.7% of net
assets.
INCOME TAX INFORMATION
At November 30, 1993, the fund had a capital loss carryforward of
approximately $1,195,000 which will expire on November 30, 2001.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) MAY 31, 1994
4.ASSETS 5. 6.
7.Investment in securities, at value (including repurchas 8. $ 13,309,672
e
agreements of $892,175) (Notes 1 and 2) - See
accompanying schedule
9.Cash 10. 435
11.Interest receivable 12. 32,968
13. 14.TOTAL ASSETS 15. 13,343,075
16.LIABILITIES 17. 18.
19.Payable for investments purchased $ 119,945 20.
21.Share transactions in process 9,711 22.
23.Dividends payable 235 24.
25.Accrued management fee 2,160 26.
27.Other payables and accrued expenses 3,706 28.
29. 30.TOTAL LIABILITIES 31. 135,757
32.33.NET ASSETS 34. $ 13,207,318
35.Net Assets consist of: 36. 37.
38.Paid in capital 39. $ 13,208,574
40.Accumulated net realized gain (loss) on investments 41. (1,256)
42.43.NET ASSETS, for 13,208,574 shares outstanding 44. $ 13,207,318
45.46.NET ASSET VALUE, offering price and redemption p 47. $1.00
rice
per share ($13,207,318(divided by)13,208,574 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED MAY 31, 1994
48.49.INTEREST INCOME 50. $ 208,081
51.EXPENSES 52. 53.
54.Management fee (Note 4) $ 10,843 55.
56.Transfer agent fees (Note 4) 21,042 57.
58.Accounting fees and expenses (Note 4) 375 59.
60.Non-interested trustees' compensation 34 61.
62.Custodian fees and expenses 129 63.
64.Registration fees 255 65.
66.Audit 57 67.
68.Legal 36 69.
70.Miscellaneous 54 71.
72. 73.TOTAL EXPENSES 74. 32,825
75.76.NET INTEREST INCOME 77. 175,256
78.79.NET REALIZED GAIN (LOSS) ON INVESTMENTS (NOT 80. (1,289)
E 1)
81.82.NET INCREASE IN NET ASSETS RESULTING FROM OPER 83. $ 173,967
ATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR
ENDED ENDED
MAY 31, NOVEMBER 30,
1994 1993
84.INCREASE (DECREASE) IN NET ASSETS
85.Operations $ 175,256 $ 284,873
Net interest income
86. Net realized gain (loss) on investments (1,289) (1,196)
87. 88.NET INCREASE (DECREASE) IN NET ASSETS RESULTI 173,967 283,677
NG FROM
OPERATIONS
89.Dividends to shareholders from net interest income (175,256) (284,873)
90.Share transactions at net asset value of $1.00 per sh 15,101,884 17,583,679
are
Proceeds from sales of shares
91. Reinvestment of dividends from net interest income 168,973 276,200
92. Cost of shares redeemed (12,376,189) (17,584,689)
93. Net increase (decrease) in net assets resulting fro 2,894,668 275,190
m
share transactions
94. 95.TOTAL INCREASE (DECREASE) IN NET ASSETS 2,893,379 273,994
96.NET ASSETS 97. 98.
99. Beginning of period 10,313,939 10,039,945
100. End of period $ 13,207,318 $ 10,313,939
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
101. SIX MONTHS YEARS ENDED NOVEMBER 30,
ENDED
MAY 31,
102. 1994 1993 1992 1991 1990 1989
103.SELECTED PER-SHARE DATA
104.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
105.Income from .015 .029 .038 .061 .076 .086
Investment
Operations
Net interest
income
106. Dividends from (.015) (.029) (.038) (.061) (.076) (.086)
net
interest income
107.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
108.TOTAL RETURN (dagger) 1.53% 2.97 3.90 6.23 7.87 8.94
% % % % %
109.RATIOS AND SUPPLEMENTAL D
ATA
110.Net assets, end $ 13,207 $ 10,314 $ 10,040 $ 10,519 $ 10,921 $ 10,897
of
period
(in millions)
111.Ratio of expens .58% .48 .48 .58 .69 .74
es to * % % % % %
average net
assets
112.Ratio of net inter 3.08% 2.92 3.86 6.03 7.62 8.60
est * % % % % %
income to average
net assets
</TABLE>
* ANNUALIZED
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended May 31, 1994
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Cash Reserves (the fund) is a fund of Fidelity Phillips Street
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 following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 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 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 original issue discount, is accrued as earned.
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.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities 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 $580,972,000 or 4.4% of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a basic fund fee rate of .03% of the
fund's average net assets, plus a fixed income group fee rate and an
income-based fee. The group fee rate is the weighted average of a series of
rates ranging from .1325% to .3700% and is based on the monthly average net
assets of all the mutual funds advised by FMR. The income-based fee is
added only when the fund's yield exceeds 5%. At that time the income-based
fee would equal 6% of that portion of the fund's gross income that
represents a gross yield of more than 5% per year. The maximum income-based
component is 0.24% (annualized) of average net assets. For the period, the
management fee was equivalent to an annual rate of .19% of average net
assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders
of Fidelity Cash Reserves:
We have audited the accompanying statement of assets and liabilities of
Fidelity Cash Reserves including the schedule of portfolio investments, as
of May 31, 1994, and the related statement of operations for the six months
then ended, the statements of changes in net assets for the six months then
ended and for the year ended November 30, 1993, and the financial
highlights for the six months ended May 31, 1994 and for each of the five
years in the period ended November 30, 1993. These financial statements and
financial highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of May 31, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of
Fidelity Cash Reserves as of May 31, 1994, the results of its operations
for the six months then ended, the changes in its net assets for the six
months then ended and for the year ended November 30, 1993, and the
financial highlights for for the six months ended May 31, 1994 and for each
of the five years in the period ended November 30, 1993, in conformity with
generally accepted accounting principles.
COOPERS & LYBRAND
Dallas, Texas
June 23, 1994
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
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INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Robert Litterst, Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
FIDELITY'S TAXABLE
MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan(registered trademark) Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
