FIDELITY(REGISTERED TRADEMARK)
CASH RESERVES
SEMIANNUAL REPORT
MAY 31, 2000
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
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.
FINANCIAL STATEMENTS 23 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 27 Notes to the financial
statements.
REPORT OF INDEPENDENT 31 The auditors' opinion.
ACCOUNTANTS
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
Other 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.
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,
THE 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 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
The technology sell-off that began in mid-March continued to hamper
equity markets, driving the tech-heavy NASDAQ index down more than 16%
year to date through the end of May. Broader equity indexes, including
the S&P 500(registered trademark), also were down, but not as much as
more concentrated performance measures. In bond markets, Treasuries
got a boost late in the period as economic reports showed the first
signs of a slowing economy.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-6666, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 2000 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CASH RESERVES 2.87% 5.43% 29.43% 62.86%
All Taxable Money Market 2.69% 5.09% 27.99% 59.21%
Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. To measure how the fund's performance stacked up
against its peers, you can compare it to the all taxable money market
funds average, which reflects the performance of taxable money market
funds with similar objectives tracked by iMoneyNet, Inc. The past six
months average represents a peer group of 989 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CASH RESERVES 5.43% 5.30% 5.00%
All Taxable Money Market 5.09% 5.05% 4.75%
Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
5/30/00 2/29/00 11/30/99 8/31/99 6/1/99
Fidelity Cash Reserves 6.15% 5.53% 5.32% 4.93% 4.59%
All Taxable Money Market 5.76% 5.27% 5.03% 4.64% 4.32%
Funds Average
5/31/00 3/1/00 12/1/99 9/1/99 6/2/99
MMDA 2.10% 2.09% 2.07% 2.06% 2.06%
Fidelity Cash
Reserves
All Taxable Money
Market Funds
Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 6.15
Row: 1, Col: 2, Value: 5.76
Row: 1, Col: 3, Value: 2.1
Row: 2, Col: 1, Value: 5.53
Row: 2, Col: 2, Value: 5.270000000000001
Row: 2, Col: 3, Value: 2.09
Row: 3, Col: 1, Value: 5.319999999999999
Row: 3, Col: 2, Value: 5.03
Row: 3, Col: 3, Value: 2.07
Row: 4, Col: 1, Value: 4.930000000000001
Row: 4, Col: 2, Value: 4.64
Row: 4, Col: 3, Value: 2.06
Row: 5, Col: 1, Value: 4.59
Row: 5, Col: 2, Value: 4.319999999999999
Row: 5, Col: 3, Value: 2.06
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
table above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the all
taxable money market funds average and the bank money market deposit
account (MMDA) average. Figures for the all taxable money market funds
average are from iMoneyNet, Inc. The MMDA average is supplied by BANK
RATE MONITOR(trademark).
(checkmark)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
market 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.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of John Todd)
An interview with John Todd, Portfolio Manager of Fidelity Cash
Reserves
Q. JOHN, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE SIX
MONTHS THAT ENDED MAY 31, 2000?
A. The U.S. economy grew rapidly and unemployment fell to 30-year
lows. Historically, these conditions would have caused inflation to
accelerate, and the Federal Reserve Board moved carefully through most
of the period in an attempt to contain the inflationary pressures that
usually accompany this backdrop. To do so, in February and March the
Fed implemented two 0.25 percentage point increases in the rate banks
charge each other for overnight loans - known as the fed funds rate.
The Fed was concerned about developing imbalances related to U.S.
economic growth in the form of excess spending and tight labor
markets. Until recently, there were very few signs of inflation
problems. New technologies were credited with increasing productivity,
keeping prices down. However, data released in March and April
indicated that inflationary pressures were starting to build. There
was an uptick in the consumer price index, and gross domestic product
in the first quarter came in at a robust annualized rate of more than
5% for the third quarter in a row. Most importantly, at the end of
April there was an unexpected increase in the employment cost index
(ECI), a comprehensive measure of labor costs. Year over year, the ECI
accelerated to 4.3% in the first quarter of 2000 - a high for the
current economic expansion - from a 3.4% rate in the fourth quarter of
1999. Before the release of this data, market participants anticipated
that the Fed would continue to raise rates cautiously. Afterward,
market prices started to reflect the expectation that the Fed would
become more aggressive. The Fed followed through, raising the fed
funds rate by 0.50 percentage points - up to 6.50% - at its May
meeting.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. Our view early in the period was that the Fed would embark on a
protracted program of raising rates, in order to attack the imbalances
that could result in inflationary pressures. As a result, we
structured the portfolio with a relatively short maturity and aimed to
invest in as many securities as possible that matured right around the
dates when the Fed held its Open Market Committee meetings. By doing
so, we were able to reinvest the maturing assets in securities
offering increasing yields. Part of our strategy involved using
floating-rate securities, whose yields are reset at regular intervals
or in response to changes in benchmark money market rates. In order to
keep the fund's average maturity fairly short, we also dedicated a
significant part of the portfolio to asset-backed commercial paper
with one- and two-month maturities. These high-quality, highly liquid
securities helped us achieve our goal of keeping the fund's maturity
fairly short, investing from one Fed meeting to the next.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 2000, was 6.16%, compared to
5.32% six months ago. For the six months that ended May 31, 2000, the
fund had a total return of 2.87%, compared to 2.69% for the all
taxable money market funds average, according to iMoneyNet, Inc.
Q. WHAT IS YOUR OUTLOOK, JOHN?
A. There is a very good chance that the Fed will continue its
anti-inflation efforts by implementing additional short-term rate
increases, because the Fed doesn't want to fall behind the curve. The
effects of monetary policy lag its implementation, and the middle of
2000 will mark the one-year anniversary of the beginning of the Fed's
program of interest-rate hikes. The summer would be a good time for
the Fed to pause to assess the cumulative effects of the rate
increases it has made to that point. Unless there is a major flare-up
in inflation, the general feeling in the marketplace is that the Fed
will step back for a while at that time. The upcoming presidential
election also encourages the Fed to stay in the background, at least
until the elections are over. The Fed does not want to become an issue
in the campaign season, but it will maintain a presence if conditions
warrant it.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks a high level of
current income as is
consistent with the
preservation of capital and
liquidity
FUND NUMBER: 055
TRADING SYMBOL: FDRXX
START DATE: May 10,1979
SIZE: as of May 31, 2000,
more than $42.3 billion
MANAGER: John Todd, since
1997; manager, several
other Fidelity and Spartan
taxable money market funds;
joined Fidelity in 1981
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 5/31/00 % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
11/30/99 5/31/99
0 - 30 53.3 35.8 43.7
31 - 90 25.9 40.5 35.5
91 - 180 10.6 19.7 12.2
181 - 397 10.2 4.0 8.6
WEIGHTED AVERAGE MATURITY
5/31/00 11/30/99 5/31/99
Fidelity Cash Reserves 67 DAYS 62 Days 67 Days
All Taxable Money Market 50 DAYS 54 Days 59 Days
Funds Average**
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF MAY 31, 2000 AS OF NOVEMBER 30, 1999
Commercial Paper 45.3% Commercial Paper 51.2%
Bank CDs, BAs, TDs, and Bank CDs, BAs, TDs, and
Notes 51.2% Notes 50.4%
Government Securities 1.4% Government Securities 0.0%
Other Investments and Net Other Investments and Net
Other Assets 2.1% Other Assets (1.6)%*
* OTHER INVESTMENTS AND NET
OTHER ASSETS ARE NOT
INCLUDED IN THE PIE CHART.
Row: 1, Col: 1, Value: 45.3 Row: 1, Col: 1, Value: 51.2
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 51.2 Row: 1, Col: 3, Value: 50.4
Row: 1, Col: 4, Value: 0.0 Row: 1, Col: 4, Value: nil
Row: 1, Col: 5, Value: 1.4 Row: 1, Col: 5, Value: nil
Row: 1, Col: 6, Value: 0.0 Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 2.1 Row: 1, Col: 8, Value: nil
</TABLE>
**SOURCE: IMONEYNET, INC.
INVESTMENTS MAY 31, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 35.2%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
DOMESTIC CERTIFICATES OF
DEPOSIT - 3.2%
American Express Centurion Bank
6/1/00 6.29% $ 100,000 $ 100,000
Citibank NA, New York
11/3/00 6.78 160,000 160,000
First Tennessee Bank NA,
Memphis
6/12/00 6.20 75,000 74,996
First Union National Bank,
North Carolina
6/20/00 6.89 (b) 232,000 232,000
11/21/00 6.48 280,000 280,000
5/15/01 7.35 300,000 300,000
Firstar Bank NA
6/9/00 6.42 200,000 200,000
1,346,996
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - 15.3%
Abbey National Treasury
Services PLC
8/15/00 6.27 465,000 465,000
11/6/00 6.75 530,000 530,000
11/9/00 6.50 300,000 300,000
Bank of Scotland Treasury
Services PLC
8/24/00 6.75 200,000 200,000
Barclays Bank PLC
6/19/00 6.55 350,000 350,000
6/28/00 6.55 500,000 500,000
7/28/00 5.80 175,000 175,000
Bayerische Hypo-und
Vereinsbank AG
6/13/00 6.10 340,000 340,000
6/27/00 6.22 275,000 275,000
8/21/00 6.76 60,000 60,000
11/1/00 6.70 270,000 270,000
12/11/00 6.50 300,000 300,000
Deutsche Bank AG
6/16/00 6.55 25,000 24,994
Dresdner Bank AG
8/21/00 6.75 240,000 240,000
Halifax PLC
6/30/00 6.10 280,000 280,000
12/7/00 6.43 25,000 25,000
ING Bank NV
6/28/00 6.11 170,000 170,000
8/3/00 6.25 250,000 250,002
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - CONTINUED
ING Bank NV - continued
8/21/00 6.75% $ 90,000 $ 90,000
9/25/00 6.39 280,000 280,004
11/8/00 6.51 210,000 210,009
Landesbank Hessen-Thuringen
11/20/00 7.00 210,000 210,010
National Australia Bank Ltd.
11/30/00 6.43 100,000 100,002
11/30/00 6.50 100,000 100,002
Northern Rock PLC
8/29/00 6.80 50,000 50,001
8/30/00 6.80 50,000 50,001
RaboBank Nederland Coop.
Central
11/6/00 6.83 315,000 315,000
12/18/00 6.52 135,000 135,000
Societe Generale
12/18/00 6.54 210,000 210,000
6,505,025
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS - 16.7%
Banque Nationale de Paris (BNP)
6/26/00 6.10 200,000 200,000
8/2/00 5.85 150,000 149,989
Barclays Bank PLC
6/14/00 5.66 180,000 179,997
Canadian Imperial Bank of
Commerce
6/20/00 6.19 90,000 90,000
6/21/00 6.19 250,000 250,000
6/26/00 6.55 200,000 200,000
8/17/00 6.75 185,000 185,000
11/20/00 7.01 195,000 195,000
Credit Agricole Indosuez
6/1/00 6.17 (b) 125,000 124,950
Credit Communale de Belgique SA
5/2/01 7.11 100,000 99,974
5/3/01 7.10 100,000 99,974
Deutsche Bank AG
6/12/00 6.39 (b) 230,000 229,911
11/16/00 7.01 145,000 145,000
2/5/01 6.75 425,000 424,849
2/22/01 6.82 200,000 199,931
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS -
CONTINUED
Deutsche Bank AG - continued
5/3/01 7.10% $ 100,000 $ 99,974
Dresdner Bank AG
6/23/00 6.58 (b) 170,000 169,990
12/29/00 7.05 345,000 345,000
Lloyds Bank PLC
7/17/00 5.70 75,000 74,995
Merita Bank PLC
8/16/00 6.74 100,000 100,000
National Westminster Bank PLC
7/12/00 5.75 300,000 299,984
Norddeutsche Landesbank
Girozentrale
7/12/00 5.76 95,000 94,995
2/8/01 6.75 110,000 109,964
5/8/01 7.15 215,000 214,962
RaboBank Nederland Coop.
Central
7/12/00 5.75 35,000 34,998
Royal Bank of Canada
6/13/00 6.45 (b) 275,000 274,868
5/2/01 7.00 150,000 149,974
5/3/01 7.10 15,000 14,996
Royal Bank of Scotland PLC
6/6/00 6.40 200,000 200,000
6/9/00 6.45 50,000 50,000
6/22/00 6.20 100,000 100,000
Societe Generale
6/9/00 6.42 (b) 280,000 279,899
6/19/00 6.56 (b) 138,000 137,992
6/29/00 6.61 (b) 121,000 120,950
Svenska Handelsbanken AB
6/12/00 5.60 175,000 174,999
5/2/01 7.00 190,000 189,967
Toronto Dominion Bank
6/19/00 6.06 400,000 400,000
UBS AG
7/5/00 5.80 200,000 199,993
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS -
CONTINUED
UBS AG - continued
12/7/00 6.45% $ 50,000 $ 49,912
5/1/01 7.00 395,000 394,932
7,057,919
TOTAL CERTIFICATES OF DEPOSIT 14,909,940
COMMERCIAL PAPER - 45.3%
Aspen Funding Corp.
6/8/00 6.42 150,000 149,814
9/18/00 6.35 265,000 260,065
Asset Securitization Coop.
Corp.
6/6/00 6.34 78,000 77,932
6/7/00 6.43 150,000 149,840
6/19/00 6.46 85,000 84,728
6/21/00 6.20 75,000 74,746
7/17/00 6.67 45,000 44,620
7/18/00 6.67 100,000 99,138
7/19/00 6.68 225,000 223,020
Bank of America Corp.
6/23/00 6.20 300,000 298,882
11/6/00 6.84 200,000 194,198
Barclays U.S. Funding Corp.
6/15/00 6.53 455,000 453,850
BBL North America Funding Corp.
8/16/00 6.77 100,000 98,594
Caisse des Depots et
Consignations
6/20/00 6.54 250,000 249,142
CBA Finance, Inc.
8/3/00 6.25 100,000 98,940
Centric Capital Corp.
6/26/00 6.56 45,000 44,796
CIT Group, Inc.
6/15/00 6.55 30,000 29,924
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
6/2/00 6.33 40,000 39,993
6/14/00 6.51 25,000 24,942
6/20/00 6.56 25,000 24,914
6/21/00 6.56 25,000 24,909
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Citibank Credit Card Master
Trust I (Dakota Certificate
Program) - continued
7/6/00 6.65% $ 25,000 $ 24,840
7/24/00 6.68 25,000 24,757
Comdisco, Inc.
6/1/00 6.63 18,000 18,000
ConAgra, Inc.
6/6/00 6.72 50,000 49,953
6/8/00 6.72 75,000 74,902
6/15/00 6.72 35,000 34,909
6/15/00 6.73 25,000 24,935
7/6/00 6.84 137,000 136,096
Conoco, Inc.
6/26/00 6.76 50,000 49,767
6/29/00 6.75 25,000 24,870
Corporate Receivables Corp.
8/14/00 6.77 200,000 197,262
8/16/00 6.77 75,000 73,946
Cregem North America, Inc.
11/22/00 6.44 25,000 24,257
11/27/00 6.45 150,000 145,413
11/28/00 6.44 150,000 145,387
CXC, Inc.
6/7/00 6.24 100,000 99,897
7/12/00 6.67 50,000 49,624
7/13/00 6.67 90,450 89,752
8/23/00 6.77 100,000 98,467
Daimler-Chrysler North
America Holding Corp.
6/7/00 6.41 150,000 149,840
8/21/00 6.78 50,000 49,251
Delaware Funding Corp.
6/15/00 6.54 253,266 252,624
Den Danske Corp., Inc.
7/19/00 6.67 72,795 72,154
Deutsche Bank Financial, Inc.
8/15/00 6.76 400,000 394,458
Dexia CLF Finance Co.
8/11/00 6.24 118,500 117,086
Dominion Resources, Inc.
6/8/00 6.82 50,000 49,934
6/8/00 6.83 40,000 39,947
6/9/00 6.83 75,000 74,887
6/12/00 6.83 40,000 39,917
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Dominion Resources, Inc. -
continued
6/13/00 6.85% $ 70,000 $ 69,841
6/15/00 6.85 42,000 41,889
Edison Asset Securitization LLC
6/1/00 6.30 150,000 150,000
6/2/00 6.30 25,000 24,996
6/7/00 6.41 100,000 99,894
6/13/00 6.56 200,000 199,565
6/15/00 6.56 50,000 49,873
6/19/00 6.56 100,406 100,079
6/22/00 6.48 200,000 199,250
6/22/00 6.56 247,352 246,411
7/13/00 6.67 386,747 383,765
7/17/00 6.68 63,813 63,274
7/24/00 6.68 30,000 29,708
7/25/00 6.69 150,000 148,513
Enterprise Funding Corp.
6/20/00 6.23 16,654 16,600
Falcon Asset Securitization
Corp.
6/1/00 6.16 95,695 95,695
6/1/00 6.28 81,740 81,740
6/2/00 6.16 40,000 39,993
6/2/00 6.31 96,000 95,983
6/9/00 6.31 75,940 75,834
6/12/00 6.45 50,000 49,902
6/12/00 6.46 246,140 245,657
6/15/00 6.40 80,000 79,802
6/19/00 6.43 45,000 44,856
6/20/00 6.55 43,500 43,350
6/20/00 6.56 61,930 61,717
6/22/00 6.56 25,000 24,905
6/27/00 6.56 100,000 99,529
6/29/00 6.56 192,425 191,449
8/15/00 6.77 140,705 138,753
Fortis Funding LLC
7/24/00 6.24 25,000 24,777
8/1/00 6.25 50,000 49,487
8/16/00 6.77 50,000 49,297
GE Capital International
Funding, Inc.
6/7/00 6.40 60,000 59,936
6/9/00 6.44 50,000 49,929
6/20/00 6.20 150,000 149,516
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
GE Capital International
Funding, Inc. - continued
7/17/00 6.66% $ 200,000 $ 198,313
General Electric Capital Corp.
8/23/00 6.77 100,000 98,467
8/24/00 6.77 80,000 78,759
11/8/00 6.88 225,000 218,350
General Electric Capital
Services, Inc.
11/7/00 6.88 250,000 242,657
General Motors Acceptance Corp.
7/13/00 6.66 250,000 248,075
7/18/00 6.67 230,000 228,018
8/28/00 6.75 481,620 473,826
Goldman Sachs Group, Inc.
6/14/00 6.11 400,000 399,132
GTE Corp.
7/6/00 6.70 48,200 47,888
7/10/00 6.72 105,000 104,241
7/14/00 6.76 56,000 55,552
Heller Financial, Inc.
6/19/00 6.66 50,000 49,835
6/22/00 6.68 50,000 49,806
6/23/00 6.68 50,000 49,797
6/27/00 6.76 25,000 24,878
ING America Insurance
Holdings, Inc.
6/1/00 6.30 25,000 25,000
7/7/00 6.60 25,000 24,837
11/8/00 6.95 35,000 33,955
Kitty Hawk Funding Corp.
6/16/00 6.20 8,101 8,080
6/16/00 6.59 32,853 32,763
6/20/00 6.56 12,075 12,033
7/24/00 6.68 283,454 280,696
8/15/00 6.27 100,000 98,733
9/20/00 6.41 50,000 49,043
Lehman Brothers Holdings, Inc.
7/20/00 6.44 (b) 58,000 58,000
7/25/00 6.47 (b) 125,000 125,000
8/2/00 6.54 (b) 111,000 111,000
Montauk Funding Corp.
6/12/00 6.45 50,000 49,902
6/14/00 6.46 100,000 99,768
6/15/00 6.57 340,000 339,137
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Montauk Funding Corp. -
continued
8/16/00 6.74% $ 180,000 $ 177,481
Nationwide Building Society
6/8/00 6.43 200,000 199,751
6/9/00 6.43 100,000 99,858
8/21/00 6.77 200,000 197,008
New Center Asset Trust
6/19/00 6.57 300,000 299,021
Newport Funding Corp.
6/1/00 6.24 100,000 100,000
6/16/00 6.56 90,000 89,756
6/26/00 6.12 153,000 152,363
Norfolk Southern Corp.
6/1/00 6.48 47,704 47,704
6/7/00 6.64 6,893 6,885
6/19/00 6.89 20,000 19,932
7/6/00 6.92 28,037 27,850
Park Avenue Receivables Corp.
6/6/00 6.34 25,000 24,978
6/8/00 6.44 31,055 31,016
6/9/00 6.45 150,000 149,786
6/12/00 6.54 82,246 82,082
PHH Corp.
6/1/00 6.90 100,000 100,000
6/5/00 6.63 45,000 44,967
Preferred Receivables Funding
Corp.
6/1/00 6.28 69,297 69,297
6/2/00 6.34 100,000 99,982
6/7/00 6.44 200,000 199,786
6/8/00 6.44 79,300 79,201
6/12/00 6.54 26,570 26,517
6/20/00 6.22 11,740 11,702
6/20/00 6.23 30,560 30,461
6/26/00 6.58 110,000 109,501
6/29/00 6.58 100,000 99,492
7/6/00 6.65 123,895 123,100
7/24/00 6.69 10,000 9,903
RaboBank Nederland Coop.
Central
6/22/00 6.10 85,000 84,703
Rohm & Haas Co.
6/1/00 6.90 35,000 35,000
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Salomon Smith Barney
Holdings, Inc.
6/2/00 6.16% $ 100,000 $ 99,983
6/19/00 6.50 50,000 49,839
7/24/00 6.69 150,000 148,540
Societe Generale NA
8/3/00 6.25 110,000 108,833
12/26/00 6.69 110,000 105,952
Southern Co.
6/26/00 6.60 75,000 74,658
Svenska Handelsbanken, Inc.
11/20/00 6.46 30,000 29,117
Triple-A One Funding Corp.
6/6/00 6.34 42,527 42,490
Tyco International Group SA
6/15/00 6.82 58,000 57,847
6/20/00 6.88 69,000 68,751
6/26/00 6.88 245,000 243,838
UBS Finance, Inc.
6/22/00 6.54 168,750 168,110
6/26/00 6.55 560,000 557,473
Variable Funding Capital Corp.
6/9/00 6.45 50,000 49,929
6/12/00 6.50 375,000 374,260
7/6/00 6.64 100,000 99,359
7/20/00 6.67 50,000 49,551
7/21/00 6.68 50,000 49,542
8/16/00 6.77 50,000 49,297
Ventures Business Trust
6/20/00 6.59 150,000 149,481
Windmill Funding Corp.
6/1/00 6.28 50,000 50,000
6/5/00 6.17 50,000 49,966
6/5/00 6.34 50,000 49,965
6/6/00 6.34 75,000 74,934
6/7/00 6.39 100,000 99,894
6/8/00 6.40 25,000 24,969
6/9/00 6.45 100,000 99,858
6/12/00 6.16 50,000 49,907
6/12/00 6.45 75,000 74,853
6/12/00 6.46 50,000 49,902
6/19/00 6.46 50,000 49,840
6/20/00 6.56 50,000 49,828
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Windmill Funding Corp. -
continued
6/22/00 6.55% $ 25,000 $ 24,905
6/27/00 6.56 50,000 49,765
6/28/00 6.56 100,000 99,511
TOTAL COMMERCIAL PAPER 19,169,455
FEDERAL AGENCIES - 1.4%
FEDERAL HOME LOAN BANK - 0.4%
Discount Notes - 0.4%
2/1/01 6.50 161,000 154,316
FREDDIE MAC - 1.0%
Discount Notes - 1.0%
6/29/00 6.14 160,000 159,247
2/1/01 6.57 86,000 82,392
2/7/01 6.50 200,000 191,494
433,133
TOTAL FEDERAL AGENCIES 587,449
BANK NOTES - 4.8%
Bank of America NA
6/21/00 6.10 410,000 410,000
8/15/00 6.27 15,000 14,997
8/15/00 6.75 190,000 190,000
11/20/00 7.00 120,000 120,000
Bank One NA, Chicago
7/19/00 6.15 120,000 120,000
7/19/00 6.26 (b) 200,000 199,946
7/21/00 6.27 (b) 210,000 209,926
Comerica Bank, Detroit
6/12/00 6.52 (b) 180,000 179,973
First Union National Bank,
North Carolina
7/5/00 6.38 (b) 190,000 190,000
7/26/00 6.32 (b) 143,000 143,000
Fleet National Bank
6/1/00 6.71 (b) 150,000 149,992
6/1/00 6.78 (b) 75,000 74,982
BANK NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Lasalle Bank NA
2/5/01 6.75% $ 30,000 $ 29,990
TOTAL BANK NOTES 2,032,806
MASTER NOTES - 0.7%
J.P. Morgan Securities, Inc.
6/7/00 6.60 (b) 280,000 280,000
MEDIUM-TERM NOTES - 6.1%
Abbey National Treasury
Services PLC
8/3/00 5.85 150,000 149,988
AT&T Corp.
6/7/00 6.48 (b) 460,000 460,000
Bank of Scotland Treasury
Services PLC
7/19/00 6.28 (b) 129,000 129,003
Centex Home Mortgage LLC
6/20/00 6.75 (a)(b) 190,000 190,000
CIESCO LP
6/19/00 6.55 (b) 170,000 169,996
CIT Group, Inc.
6/1/00 6.61 (b) 190,000 189,884
6/1/00 6.70 (b) 160,000 159,994
Ford Motor Credit Co.
6/12/00 6.06 (b) 250,000 249,910
8/23/00 6.80 (b) 310,000 309,952
General Motors Acceptance Corp.
6/14/00 6.05 (b) 140,000 139,934
General Motors Acceptance
Corp. Mortgage Credit
6/1/00 6.25 85,000 85,000
Merrill Lynch & Co., Inc.
6/5/00 6.26 (b) 190,000 189,984
Morgan Stanley Dean Witter &
Co.
6/30/00 6.30 (b) 150,000 149,993
TOTAL MEDIUM-TERM NOTES 2,573,638
SHORT-TERM NOTES - 3.5%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Jackson National Life
Insurance Co.
6/1/00 6.53% (b)(c) $ 130,000 $ 130,000
Monumental Life Insurance Co.
6/1/00 6.32 (b)(c) 78,000 78,000
6/1/00 6.35 (b)(c) 65,000 65,000
8/1/00 6.58 (b)(c) 50,000 50,000
New York Life Insurance Co.
6/1/00 6.22 (b)(c) 75,000 75,000
7/3/00 6.41 (b)(c) 81,000 81,000
Pacific Life Insurance Co.
6/9/00 6.22 (b)(c) 90,000 90,000
RACERS Series 1999 16MM,
6/2/00 6.22 (a)(b) 171,000 171,000
Strategic Money Market Trust
Series 1999 A6,
7/13/00 6.40 (a)(b) 305,000 305,000
Strategic Money Market Trust
Series 2000 B,
6/13/00 6.15 (a)(b) 130,000 130,000
Transamerica Occidental Life
Insurance Co.
8/30/00 6.56 (b)(c) 200,000 200,000
Travelers Insurance Co.
7/28/00 6.61 (b)(c) 95,000 95,000
TOTAL SHORT-TERM NOTES 1,470,000
TIME DEPOSITS - 0.9%
Societe Generale
6/1/00 6.81 400,000 400,000
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 1.6%
MATURITY AMOUNT (000S)
In a joint trading account $ 1,497 1,497
(U.S. Government
Obligations) dated 5/31/00
due 6/1/00 At 6.56%
With:
Bank of America NA At 6.89%, 135,026 135,000
dated 5/31/00 due 6/1/00
(Commercial Paper
Obligations) (principal
amount $135,000,000) 0% -
6.58%, 6/1/00 - 7/5/00
REPURCHASE AGREEMENTS -
CONTINUED
MATURITY AMOUNT (000S) VALUE (NOTE 1) (000S)
With: - continued
Deutsche Bank Securities, $ 500,096 $ 500,000
Inc. At 6.89%, dated
5/31/00 due 6/1/00
(Corporate Obligations)
(principal amount
$500,000,000) 0% - 9.80%,
1/15/02 - 2/15/47
Goldman Sachs & Co. At 6.85%, 50,010 50,000
dated 5/31/00 due 6/1/00
(Commercial Paper
Obligations) (principal
amount $50,000,000) 0%,
6/6/00 - 6/22/00
TOTAL REPURCHASE AGREEMENTS 686,497
TOTAL INVESTMENT PORTFOLIO - 42,109,785
99.5%
NET OTHER ASSETS - 0.5% 196,309
NET ASSETS - 100% $ 42,306,094
Total Cost for Income Tax Purposes $ 42,109,785
</TABLE>
LEGEND
(a) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $796,000,000 or 1.9% 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 (000S)
Jackson National Life 7/6/99 $ 130,000
Insurance Co. 6.53%, 6/1/00
Monumental Life Insurance 7/31/98 - 9/17/98 $ 78,000
Co.: 6.32%, 6/1/00
6.35%, 6/1/00 3/12/99 $ 65,000
6.58%, 8/1/00 2/1/00 $ 50,000
New York Life Insurance Co.: 8/13/99 $ 75,000
6.22%, 6/1/00
6.41%, 7/3/00 12/20/99 $ 81,000
Pacific Life Insurance Co. 8/31/99 $ 90,000
6.22%, 6/9/00
Transamerica Occidental Life 4/28/00 $ 200,000
Insurance Co. 6.56%, 8/30/00
Travelers Insurance Co. 4/28/00 $ 95,000
6.61%, 7/28/00
INCOME TAX INFORMATION
At November 30, 1999, the fund had a capital loss carryforward of
approximately $1,899,000 of which $105,000, $1,634,000 and $160,000
will expire on November 30, 2001, 2002 and 2004, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT)
MAY 31, 2000
ASSETS
Investment in securities, at $ 42,109,785
value (including repurchase
agreements of $686,497) -
See accompanying schedule
Cash 164
Receivable for fund shares 379,735
sold
Interest receivable 250,132
Other receivables 23
Prepaid expenses 858
TOTAL ASSETS 42,740,697
LIABILITIES
Payable for fund shares $ 414,242
redeemed
Distributions payable 3,414
Accrued management fee 8,501
Other payables and accrued 8,446
expenses
TOTAL LIABILITIES 434,603
NET ASSETS $ 42,306,094
Net Assets consist of:
Paid in capital $ 42,307,797
Accumulated net realized gain (1,703)
(loss) on investments
NET ASSETS, for 42,306,568 $ 42,306,094
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($42,306,094
(divided by) 42,306,568
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX
MONTHS ENDED MAY 31, 2000
INTEREST INCOME $ 1,223,151
EXPENSES
Management fee $ 44,624
Transfer agent fees 40,193
Accounting fees and expenses 606
Non-interested trustees' 66
compensation
Custodian fees and expenses 279
Registration fees 1,725
Audit 91
Legal 92
Interest 18
Miscellaneous 731
Total expenses before 88,425
reductions
Expense reductions (605) 87,820
NET INTEREST INCOME 1,135,331
NET REALIZED GAIN (LOSS) ON 196
INVESTMENTS
NET INCREASE IN NET ASSETS $ 1,135,527
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED MAY 31, 2000 YEAR ENDED NOVEMBER 30, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 1,135,331 $ 1,687,220
Net realized gain (loss) 196 221
NET INCREASE (DECREASE) IN 1,135,527 1,687,441
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (1,135,331) (1,687,220)
from net interest income
Share transactions at net 73,135,393 89,997,182
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 1,108,395 1,646,256
distributions from net
interest income
Cost of shares redeemed (69,918,647) (84,362,953)
NET INCREASE (DECREASE) IN 4,325,141 7,280,485
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 4,325,337 7,280,706
IN NET ASSETS
NET ASSETS
Beginning of period 37,980,757 30,700,051
End of period $ 42,306,094 $ 37,980,757
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED MAY 31, YEARS ENDED NOVEMBER 30,
2000 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 .028 .048 .052 .052 .051 .055
Operations Net interest
income
Less Distributions
From net interest income (.028) (.048) (.052) (.052) (.051) (.055)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B, C 2.87% 4.94% 5.34% 5.30% 5.18% 5.67%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 42,306 $ 37,981 $ 30,700 $ 23,498 $ 21,241 $ 18,432
(in millions)
Ratio of expenses to average .44% A .44% .47% .49% .51% .55%
net assets
Ratio of expenses to average .44% A .44% .47% .48% D .51% .55%
net assets after expense
reductions
Ratio of net interest income 5.68% A 4.85% 5.20% 5.22% 5.06% 5.50%
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 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 May 31, 2000
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
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,
or other obligations found to be satisfactory by FMR are transferred
to an account of
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
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.
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 $135,000,000. The weighted average
interest rate was 4.75%.
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 $864,000,000 or 2.0% 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 group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
the fund and an income-based fee. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net
assets of all the mutual funds
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES
MANAGEMENT FEE - CONTINUED
advised by FMR. The rates ranged from .0920% to .3700% for the period.
The annual individual fund fee rate is .03%. In the event that these
rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted
in the same or a lower management fee. The income-based fee is added
only when the fund's gross 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 .24% of average net assets. For the
period, the total management fee was equivalent to an annualized rate
of .22%. The income-based portion of this fee was equal to
$13,469,000, or an annualized rate of .07% of the fund's average net
assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, Inc., a wholly owned subsidiary of FMR,
receives a fee from FMR of 50% of the management fee payable to FMR.
The fee is paid prior to any voluntary expense reimbursements which
may be in effect.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the fund's transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. For the period, the transfer agent fees were
equivalent to an annualized rate of .20% of average net assets.
ACCOUNTING FEES. 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.
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, the fund paid premiums of $1,471,000 for the calendar year
2000 to FIDFUNDS, which are being amortized over one year.
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
4. INTERFUND LENDING PROGRAM - CONTINUED
to $23,256,000. The weighted average interest rate was 5.89%. Interest
earned from the interfund lending program amounted to $23,000 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 transfer
agent fees were reduced by $605,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Phillips Street Trust and the Shareholders
of Fidelity Cash Reserves:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Cash Reserves (a fund of Fidelity Phillips Street Trust) at
May 31, 2000, and the results of its operations, the changes in its
net assets and the financial highlights for the periods indicated, in
conformity with accounting principles generally accepted in the United
States. These financial statements and financial highlights (hereafter
referred to as "financial statements") are the responsibility of the
Fidelity Cash Reserves' management; our responsibility is to express
an opinion on these financial statements based on our audits. We
conducted our audits of these financial statements in accordance with
auditing standards generally accepted in the United States which
require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at May 31, 2000 by correspondence with the custodian,
provide a reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
June 30, 2000
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments
Money Management, Inc.
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Dwight D. Churchill, Vice President
Boyce I. Greer, Vice President
John J. Todd, Vice President
Eric D. Roiter, Secretary
Robert A Dwight, 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
William O. McCoy *
Marvin L. Mann *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Michael Cook
Abigail P. Johnson
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
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
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST(registered trademark)) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
FIDELITY(REGISTERED TRADEMARK)
U.S. GOVERNMENT RESERVES
SEMIANNUAL REPORT
MAY 31, 2000
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
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.
FINANCIAL STATEMENTS 12 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 16 Notes to the financial
statements.
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
Other 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.
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,
THE 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 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
The technology sell-off that began in mid-March continued to hamper
equity markets, driving the tech-heavy NASDAQ index down more than 16%
year to date through the end of May. Broader equity indexes, including
the S&P 500(registered trademark), also were down, but not as much as
more concentrated performance measures. In bond markets, Treasuries
got a boost late in the period as economic reports showed the first
signs of a slowing economy.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. You should also keep money you'll need in the near future in a
more stable investment.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-6666, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To evaluate a money market fund's historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend 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. If Fidelity had not reimbursed
certain fund expenses, the past 10 year total return would have been
lower.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 2000 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY US GOVERNMENT RESERVES 2.79% 5.32% 29.01% 60.45%
Government Retail Money 2.57% 4.86% 26.78% 56.78%
Market Funds Average
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment
would be $1,050. To measure how the fund's performance stacked up
against its peers, you can compare it to the government retail money
market funds average, which reflects the performance of taxable money
market funds with similar objectives tracked by iMoneyNet, Inc. The
past six months average represents a peer group of 224 money market
funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY US GOVERNMENT RESERVES 5.32% 5.23% 4.84%
Government Retail Money 4.86% 4.85% 4.59%
Market Funds Average
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
5/30/00 2/29/00 11/30/99 8/31/99 6/1/99
Fidelity U.S. Government 5.90% 5.44% 5.23% 4.85% 4.58%
Reserves
Government Retail Money 5.53% 5.07% 4.80% 4.45% 4.15%
Market Funds Average
5/31/00 3/1/00 12/1/99 9/1/99 6/2/99
MMDA 2.10% 2.09% 2.07% 2.06% 2.06%
Fidelity U.S.
Government Reserves
Government Retail
Money Market
Funds Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 5.9
Row: 1, Col: 2, Value: 5.53
Row: 1, Col: 3, Value: 2.1
Row: 2, Col: 1, Value: 5.44
Row: 2, Col: 2, Value: 5.07
Row: 2, Col: 3, Value: 2.09
Row: 3, Col: 1, Value: 5.23
Row: 3, Col: 2, Value: 4.8
Row: 3, Col: 3, Value: 2.07
Row: 4, Col: 1, Value: 4.85
Row: 4, Col: 2, Value: 4.45
Row: 4, Col: 3, Value: 2.06
Row: 5, Col: 1, Value: 4.58
Row: 5, Col: 2, Value: 4.15
Row: 5, Col: 3, Value: 2.06
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
table above shows the fund's current seven-day yield at quarterly
intervals over the past year. You can compare these yields to the
government retail money market funds average and the bank money market
deposit account (MMDA) average. Figures for the government retail
money market funds average are from iMoneyNet, Inc. The MMDA average
is supplied by BANK RATE MONITOR(trademark).
(checkmark)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
market 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.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT
PAST RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Robert Litterst)
An interview with Robert Litterst, Portfolio Manager of Fidelity U.S.
Government Reserves
Q. BOB, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE SIX MONTHS
THAT ENDED MAY 31, 2000?
A. U.S. economic growth remained strong, boosted by consumer spending.
Consumers spent freely due to a strong job market, as unemployment
dropped to historically low levels. The wealth effect created by
rising stock and real estate prices as well as high confidence also
encouraged consumers to spend. Until recently, there was little
evidence of inflation. Technological improvements increased
productivity so that the economy could grow at faster rates without
generating the inflationary pressures experienced in the past.
However, in light of very strong growth and some worrisome signals on
the inflation front, the Federal Reserve Board continued to raise
short-term rates during the period, increasing the rate banks charge
each other for overnight loans - known as the fed funds rate - by
increments of 0.25 percentage points in February and March, and by
0.50 percentage points in May.
Q. WHAT HAPPENED MORE RECENTLY?
A. Evidence emerged that inflation was starting to pick up.
Specifically, the employment cost index (ECI) - a measure of the costs
that businesses incur for wages and benefits - rose sharply in the
first quarter of 2000. Combined with continued strong demand in the
economy, this data caused the market to anticipate a more aggressive
Fed policy. As mentioned above, the Fed did in fact follow through
with a more aggressive 0.50 percentage point hike at its May meeting,
bringing the fed funds rate to 6.50% by the end of the period.
Q. THERE WERE RUMBLINGS IN CONGRESS ABOUT EXAMINING THE IMPLICIT
GOVERNMENT GUARANTEE OF AGENCY-SECURITY DEBT. HOW DID THAT AFFECT THE
FUND?
A. U.S. Treasury securities are backed by the full faith and credit of
the U.S. government. However, securities issued by government
sponsored entities (GSEs) - agencies such as Fannie Mae and Freddie
Mac - enjoy only the implied support of the U.S. government, because
the agencies were created by an act of Congress. Recently, the U.S.
Treasury and some in Congress called into question some GSE activities
that fall outside the agencies' original mission. These parties also
are concerned that the agencies have grown so rapidly and to such a
great size that if they encounter significant problems, the entire
financial system may be threatened. So far, these discussions have had
no real impact on agency money market securities. We are confident
that any changes will happen far enough in the future that we will be
able to make any appropriate changes to our approach.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. With interest rates on the rise, I was cautious. Nevertheless, I
kept the fund's average maturity consistently longer than that of its
peers. That may appear to be unusual in a period of rising rates -
when one would normally maintain a shorter maturity to enable the fund
to invest in higher yields quickly. However, I was able to take
advantage of buying opportunities in longer-term securities that
factored in our expectations of future Fed rate hikes. At the end of
1999, we employed tactics that focused on earning the highest possible
yields over the turn from 1999 to 2000. Finally, I'd mention that our
floating-rate investments - whose yields are reset at regular
intervals - generally boosted fund performance. However, our holdings
in these securities declined recently because they became extremely
expensive, so we did not replace maturing positions.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on May 31, 2000, was 5.90%, compared to
5.23% six months ago. For the six months that ended May 31, 2000, the
fund had a total return of 2.79%, compared to 2.57% for the government
retail money market funds average, according to iMoneyNet, Inc.
Q. WHAT IS YOUR OUTLOOK, BOB?
A. Fed rate hikes generally take some time before they influence the
economy, and recent economic data, especially the May employment
report, suggest that past increases are finally influencing the
economy. This development, combined with the Fed's past pattern of not
raising rates at the meeting which follows an aggressive move, has
reduced the odds of a June rate hike. Nonetheless, a further rate hike
is likely later in the summer if consumer demand does not slow or if
the risk of future inflation rises. For my part, I'll continue to
follow a cautious approach until the economic outlook becomes clearer.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: seeks as high a level of
current income as is
consistent with the security of
principal and liquidity
FUND NUMBER: 050
TRADING SYMBOL: FGRXX
START DATE: November 3,
1981
SIZE: as of May 31, 2000,
more than $1.5 billion
MANAGER: Robert Litterst,
since 1997; manager,
several Fidelity and Spartan
taxable money market funds;
joined Fidelity in 1991
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MATURITY DIVERSIFICATION
DAYS % OF FUND'S INVESTMENTS 5/31/00 % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 5/31/99
11/30/99
0 - 30 52.0 50.3 62.1
31 - 90 30.1 23.5 14.3
91 - 180 9.0 14.2 12.3
181 - 397 8.9 12.0 11.3
WEIGHTED AVERAGE MATURITY
5/31/00 11/30/99 5/31/99
FIDELITY U.S. GOVERNMENT 57 DAYS 60 Days 65 Days
RESERVES
Government Retail Money 47 DAYS 54 Days 57 Days
Market Funds Average**
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF MAY 31, 2000 AS OF NOVEMBER 30, 1999
Federal Agency Issues 76.7% Federal Agency Issues 70.6%
Repurchase Agreements 25.9% Repurchase Agreements 28.8%
Net Other Assets (2.6)%* Net Other Assets 0.6%
Row: 1, Col: 1, Value: 76.7 Row: 1, Col: 1, Value: 70.59999999999999
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0 Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 25.9 Row: 1, Col: 4, Value: 28.8
Row: 1, Col: 5, Value: 0.0 Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0 Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 0.0 Row: 1, Col: 8, Value: 0.6000000000000001
</TABLE>
* NET OTHER ASSETS IS NOT INCLUDED IN THE PIE CHART.
**SOURCE: IMONEYNET, INC.
INVESTMENTS MAY 31, 2000 (UNAUDITED)
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FEDERAL AGENCIES - 76.7%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
FANNIE MAE - 35.1%
Agency Coupons - 16.9%
6/1/00 6.62% (b) $ 24,000 $ 23,998
6/2/00 6.02 (b) 15,000 14,998
6/7/00 5.25 23,000 23,000
6/8/00 6.57 (a)(b) 34,000 33,972
6/9/00 5.38 11,000 11,000
7/14/00 6.08 (b) 58,000 57,996
8/4/00 6.39 (b) 31,000 30,997
8/13/00 6.50 (b) 35,000 34,987
3/1/01 6.55 11,000 10,999
3/20/01 6.49 15,000 14,996
256,943
Discount Notes - 18.2%
6/29/00 6.14 40,000 39,812
7/13/00 6.18 53,000 52,623
7/28/00 5.73 15,000 14,871
8/10/00 6.09 13,000 12,851
8/17/00 6.63 60,000 59,162
8/31/00 6.13 25,956 25,566
9/14/00 6.24 10,000 9,824
11/2/00 6.68 15,000 14,585
11/9/00 6.84 18,000 17,468
11/22/00 6.90 10,000 9,677
5/10/01 7.20 22,000 20,591
277,030
FEDERAL HOME LOAN BANK - 20.2%
Agency Coupons - 16.9%
6/1/00 6.63 (b) 36,000 35,991
6/4/00 6.22 (b) 30,000 29,992
6/7/00 6.42 (b) 15,000 14,998
6/14/00 5.47 7,000 7,000
7/5/00 6.13 (b) 58,000 57,986
7/15/00 6.09 (b) 30,000 29,991
8/17/00 5.86 13,000 12,989
9/15/00 6.70 12,000 11,769
11/3/00 6.00 16,000 15,997
11/3/00 6.02 6,000 5,998
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
FEDERAL HOME LOAN BANK -
CONTINUED
Agency Coupons - continued
12/1/00 6.03% $ 11,000 $ 10,991
2/7/01 6.48 22,860 22,825
256,527
Discount Notes - 3.3%
8/16/00 6.10 34,332 33,902
8/16/00 6.12 17,000 16,787
50,689
FREDDIE MAC - 17.9%
Agency Coupons - 3.5%
6/20/00 5.94 (b) 11,000 10,992
7/10/00 6.06 (b) 25,000 24,986
1/16/01 6.43 18,000 17,307
53,285
Discount Notes - 14.4%
6/2/00 5.40 15,000 14,998
6/2/00 5.46 14,000 13,998
6/13/00 5.51 12,000 11,979
6/13/00 6.09 59,000 58,881
6/13/00 6.10 25,000 24,950
6/15/00 5.45 12,000 11,976
6/23/00 5.50 11,000 10,965
7/5/00 5.61 9,000 8,955
7/20/00 6.13 21,000 20,830
11/9/00 6.85 13,000 12,615
2/7/01 6.50 15,000 14,362
5/24/01 7.22 15,000 13,999
218,508
PROJECT AMERICA SHIP I, INC.
- 0.8%
Agency Coupons - 0.8%
1/31/01 6.33 (b) 12,500 12,500
STATE OF ISRAEL (GUARANTEED
BY U.S. GOVERNMENT THROUGH
AGENCY FOR INTERNATIONAL
DEVELOPMENT) - 1.2%
Agency Coupons - 1.2%
9/15/00 6.80 17,250 17,164
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
STUDENT LOAN MARKETING
ASSOCIATION - 1.5%
Agency Coupons - 1.5%
6/6/00 6.63% (b) $ 7,000 $ 6,999
6/6/00 6.68 (b) 16,000 15,998
22,997
TOTAL FEDERAL AGENCIES 1,165,643
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 25.9%
MATURITY AMOUNT (000S)
In a joint trading account
(U.S. Government
Obligations) dated:
4/7/00 due 6/7/00 At 6.1% $ 30,310 30,000
5/3/00 due 6/1/00 At 6.28% 50,253 50,000
5/4/00 due 6/2/00 At 6.29% 44,223 44,000
5/18/00 due 6/29/00 At 6.5% 50,379 50,000
5/25/00 due 6/26/00 At 6.5% 44,254 44,000
5/31/00 due 6/1/00 At 6.56% 176,637 176,605
TOTAL REPURCHASE AGREEMENTS 394,605
TOTAL INVESTMENT PORTFOLIO - 1,560,248
102.6%
NET OTHER ASSETS - (2.6)% (40,101)
NET ASSETS - 100% $ 1,520,147
Total Cost for Income Tax Purposes $ 1,560,248
</TABLE>
LEGEND
(a) Security purchased on a delayed delivery or when-issued basis.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT)
MAY 31, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 1,560,248
value (including repurchase
agreements of $394,605) -
See accompanying schedule
Receivable for fund shares 5,318
sold
Interest receivable 6,654
Prepaid expenses 5
TOTAL ASSETS 1,572,225
LIABILITIES
Payable for investments $ 17,355
purchased Regular delivery
Delayed delivery 33,972
Distributions payable 208
Accrued management fee 291
Other payables and accrued 252
expenses
TOTAL LIABILITIES 52,078
NET ASSETS $ 1,520,147
Net Assets consist of:
Paid in capital $ 1,520,100
Accumulated net realized gain 47
(loss) on investments
NET ASSETS, for 1,520,463 $ 1,520,147
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,520,147
(divided by) 1,520,463
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX
MONTHS ENDED MAY 31, 2000
(UNAUDITED)
INTEREST INCOME $ 44,510
EXPENSES
Management fee $ 1,594
Transfer agent fees 1,331
Accounting fees and expenses 76
Non-interested trustees' 2
compensation
Custodian fees and expenses 9
Registration fees 52
Audit 14
Legal 4
Miscellaneous 5
Total expenses before 3,087
reductions
Expense reductions (52) 3,035
NET INTEREST INCOME 41,475
NET REALIZED GAIN (LOSS) ON 47
INVESTMENTS
NET INCREASE IN NET ASSETS $ 41,522
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED MAY 31, 2000 YEAR ENDED NOVEMBER 30, 1999
(UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 41,475 $ 71,603
Net realized gain (loss) 47 13
NET INCREASE (DECREASE) IN 41,522 71,616
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (41,475) (71,603)
from net interest income
Share transactions at net 967,962 1,804,876
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 39,876 68,873
distributions from net
interest income
Cost of shares redeemed (1,029,917) (1,758,851)
NET INCREASE (DECREASE) IN (22,079) 114,898
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) (22,032) 114,911
IN NET ASSETS
NET ASSETS
Beginning of period 1,542,179 1,427,268
End of period $ 1,520,147 $ 1,542,179
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED MAY 31, 2000 YEARS ENDED NOVEMBER 30,
(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 .028 .048 .052 .051 .050 .055
Operations Net interest
income
Less Distributions
From net interest income (.028) (.048) (.052) (.051) (.050) (.055)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 2.79% 4.86% 5.29% 5.26% 5.12% 5.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,520 $ 1,542 $ 1,427 $ 1,290 $ 1,243 $ 1,188
(in millions)
Ratio of expenses to average .41% A .41% .45% .48% .51% .55%
net assets
Ratio of expenses to average .40% A, D .40% D .44% D .48% .50% D .55%
net assets after expense
reductions
Ratio of net interest income 5.52% A 4.77% 5.16% 5.13% 5.02% 5.43%
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 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 May 31, 2000 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity U.S. Government 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 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.
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,
or other obligations found to be 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.
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
2. OPERATING POLICIES - CONTINUED
WHEN-ISSUED SECURITIES - CONTINUED
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
<TABLE>
<CAPTION>
<S> <C>
DATED APRIL 7, 2000, DUE JUNE 7, 2000 AT 6.10%
Number of dealers or banks 1
Maximum amount with one 100.0%
dealer or bank
Aggregate principal amount of $625,000,000
agreements
Aggregate maturity amount of $631,460,069
agreements
Aggregate market value of $637,616,295
transferred assets
Coupon rates of transferred 5.50% to 6.45%
assets
Maturity dates of transferred 4/29/09 to 11/1/37
assets
DATED MAY 3, 2000, DUE JUNE 1, 2000 AT 6.28%
Number of dealers or banks 1
Maximum amount with one 100.0%
dealer or bank
Aggregate principal amount of $500,000,000
agreements
Aggregate maturity amount of $502,529,444
agreements
Aggregate market value of $510,000,259
transferred assets
Coupon rates of transferred 0.00% to 9.00%
assets
Maturity dates of transferred 9/14/00 to 4/1/34
assets
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED MAY 4, 2000, DUE JUNE 2, 2000 AT 6.29%
Number of dealers or banks 1
Maximum amount with one 100.0%
dealer or bank
Aggregate principal amount of $200,000,000
agreements
Aggregate maturity amount of $201,013,389
agreements
Aggregate market value of $204,511,157
transferred assets
Coupon rates of transferred 5.50% to 11.50%
assets
Maturity dates of transferred 8/1/00 to 6/1/30
assets
DATED MAY 18, 2000, DUE JUNE 29, 2000 AT 6.50%
Number of dealers or banks 1
Maximum amount with one 100.0%
dealer or bank
Aggregate principal amount of $250,000,000
agreements
Aggregate maturity amount of $251,895,833
agreements
Aggregate market value of $255,000,000
transferred assets
Coupon rates of transferred 5.50% to 9.00%
assets
Maturity dates of transferred 12/1/03 to 8/1/37
assets
DATED MAY 25, 2000, DUE JUNE 26, 2000 AT 6.50%
Number of dealers or banks 1
Maximum amount with one 100.0%
dealer or bank
Aggregate principal amount of $200,000,000
agreements
Aggregate maturity amount of $201,155,556
agreements
Aggregate market value of $205,021,076
transferred assets
Coupon rates of transferred 5.50% to 15.00%
assets
Maturity dates of transferred 6/1/00 to 6/1/30
assets
DATED MAY 31, 2000, DUE JUNE 1, 2000 AT 6.56%
Number of dealers or banks 12
Maximum amount with one 15.3%
dealer or bank
Aggregate principal amount of $8,414,000,000
agreements
Aggregate maturity amount of $8,415,533,735
agreements
Aggregate market value of $8,582,777,915
transferred assets
Coupon rates of transferred 0.00% to 17.00%
assets
Maturity dates of transferred 6/1/00 to 11/1/37
assets
</TABLE>
4. 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 group fee rate plus a
fixed individual fund fee rate applied to the average net assets of
the fund and an income-based fee. The group fee rate is the weighted
average of a series of rates and is based on the monthly average net
assets of all the mutual funds advised by FMR. The rates ranged from
.0920% to .3700% for the period. The annual individual fund fee rate
is .03%. In the event that these rates were lower than the contractual
rates in effect during the period, FMR voluntarily implemented the
above rates, as they resulted in the same or a lower management fee.
The income-based fee is added only when the fund's gross 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 .24% of average net
assets. For the period, the total management fee was equivalent to an
annualized rate of .21%. The income-based portion of this fee was
equal to $422,000, or an annualized rate of .06% of the fund's average
net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, Inc., a wholly owned subsidiary of FMR,
receives a fee from FMR of 50% of the management fee payable to FMR.
The fee is paid prior to any voluntary expense reimbursements which
may be in effect.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the fund's transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. For the period, the transfer agent fees were
equivalent to an annualized rate of .18% of average net assets.
ACCOUNTING FEES. 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.
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, the fund paid premiums of $9,430 for the calendar year 2000 to
FIDFUNDS, which are being amortized over one year.
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
custodian and transfer agent fees were reduced by $51,000 and $1,000,
respectively, under these arrangements.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity Automated Service Telephone provides a single toll-free
number to access account balances, positions, quotes and trading. It's
easy to navigate the service, and on your first call, the system will
help you create a personal identification number (PIN) for security.
(PHONE_GRAPHIC)FIDELITY AUTOMATED
SERVICE TELEPHONE (FAST(registered trademark))
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
BY PC
Fidelity's web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+(registered trademark)
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-0240 or visit our web site for more information on how to
manage your investments via your PC.
* 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.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19200 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
8 Montgomery Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
8880 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
MAINE
Three Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
One W. Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
801 Boylston Street
Boston, MA
155 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 Old N. Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
NEW JERSEY
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
16850 SW 72nd Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
RHODE ISLAND
47 Providence Place
Providence, RI
TENNESSEE
6150 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
1861 International Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments
Money Management, Inc.
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Dwight D. Churchill, Vice President
Boyce I. Greer, Vice President
Robert A. Litterst, Vice President
Eric D. Roiter, Secretary
Robert A. Dwight, 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
William O. McCoy *
Marvin L. Mann *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Michael Cook
Abigail P. Johnson
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
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
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST(registered trademark)) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
