FIDELITY(REGISTERED TRADEMARK)
CASH RESERVES
ANNUAL REPORT
NOVEMBER 30, 1999
(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 30 The auditors' opinion.
ACCOUNTANTS
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:
U.S. equity indexes once again dominated the financial headlines, led
by the NASDAQ's 15 record highs in 21 November sessions. Meanwhile,
the Standard & Poor's 500SM posted two record closings and the Dow
Jones Industrial Average crept above the 11,000 mark for the first
time since mid-September. However, another Federal Reserve Board
interest rate hike and continued inflation concerns drove down the
price of the benchmark 30-year Treasury.
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.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CASH RESERVES 4.94% 29.37% 64.52%
All Taxable Money Market 4.60% 28.01% 60.98%
Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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 IBC Financial Data, Inc. The past
one year average represents a peer group of 947 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY CASH RESERVES 4.94% 5.28% 5.10%
All Taxable Money Market 4.60% 5.06% 4.87%
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
11/30/99 8/31/99 6/1/99 3/2/99 12/1/98
Fidelity Cash Reserves 5.32% 4.93% 4.59% 4.74% 4.92%
All Taxable Money Market 5.03% 4.64% 4.32% 4.37% 4.57%
Funds Average
12/1/99 9/1/99 6/2/99 3/3/99 12/2/98
MMDA 2.07% 2.06% 2.06% 2.16% 2.32%
Fidelity Cash
Reserves
All Taxable Money
Market Funds
Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 5.319999999999999
Row: 1, Col: 2, Value: 5.03
Row: 1, Col: 3, Value: 2.07
Row: 2, Col: 1, Value: 4.930000000000001
Row: 2, Col: 2, Value: 4.64
Row: 2, Col: 3, Value: 2.06
Row: 3, Col: 1, Value: 4.59
Row: 3, Col: 2, Value: 4.319999999999999
Row: 3, Col: 3, Value: 2.06
Row: 4, Col: 1, Value: 4.74
Row: 4, Col: 2, Value: 4.37
Row: 4, Col: 3, Value: 2.16
Row: 5, Col: 1, Value: 4.92
Row: 5, Col: 2, Value: 4.57
Row: 5, Col: 3, Value: 2.32
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 IBC Financial Data, 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 12-MONTH
PERIOD ENDING NOVEMBER 30, 1999?
A. During the first six months of the period, financial markets
recovered from a global crisis that rocked them in 1998. To help
alleviate that crisis, the Federal Reserve Board reduced the rate that
banks charge each other for overnight loans - known as the fed funds
target rate - by 0.25 percentage points three times shortly before the
period began, bringing the fed funds rate down to 4.75%. By the spring
of 1999, economies in Asia, particularly Japan, seemed to be reviving.
That rebirth helped spark increases in the price of oil and other
commodities. With a more positive global outlook, investors turned
their eyes back to the domestic scene, where they saw an economy that
continued to grow at a relatively robust rate. Final demand - meaning
retail sales - remained strong, but standard inflation measures such
as the consumer price index (CPI) and the producer price index (PPI)
remained fairly subdued. In May, however, a report was released
showing an unexpected outsized gain in the CPI for April. This CPI
scare later proved to be short-lived, but put the markets on alert and
also captured the attention of the Fed. In addition, many stock market
indexes reached new highs during this period.
Q. HOW DID THE FED RESPOND TO THESE CONDITIONS?
A. At its May meeting, the Fed shifted from a neutral interest-rate
stance to a bias toward hiking rates to head off inflation. The Fed
followed through with a 0.25 percentage-point increase in the fed
funds rate at the end of June, although it went back to a neutral
stance at that time. Nevertheless, market observers expected the Fed
to take back all three of the rate cuts it implemented in late 1998.
As it turned out, that's exactly what happened. The Fed raised the fed
funds rate by 0.25 percentage points two more times, in August and
November. It stood at 5.50% at the end of the period, the same level
it had been before global turmoil hit in 1998.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. At the beginning of its fiscal year, the fund's average maturity
was relatively long after having locked in yields when the Fed cut
rates. The maturity was allowed to shorten as we moved into the new
calendar year because longer-term securities offered little yield
advantage. But then in February and March, the market became convinced
that higher interest rates were in the offing. Therefore, I lengthened
the fund's average maturity by purchasing one-year securities that
factored in the higher interest rates that I expected. At the same
time, I allocated some assets to very short-maturity instruments to
enable the fund to take advantage of buying opportunities. With the
CPI scare in May, yields in the market rose in anticipation of Fed
action. By the end of July, I increased the fund's average maturity to
71 days by investing again in attractive one-year maturities that
factored in rising interest rates. Meanwhile, I preserved liquidity to
take advantage of expected rising yields brought on by market
pressures. I also increased the fund's holdings in variable-rate
securities, whose yields are reset periodically. These investments
ratcheted up in response to the latest Fed rate hikes and should
continue to rise in response to the higher yields the market
historically experiences at the end of the calendar year.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on November 30, 1999, was 5.32%,
compared to 4.92% 12 months ago. For the 12 months that ended November
30, 1999, the fund had a total return of 4.94%, compared to 4.60% for
the all taxable money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. The fed funds rate is now back at the same level as it was in 1998
before the Fed felt compelled to lower rates to benefit the financial
markets. At that time, the Fed appeared relatively comfortable with
its monetary policy amid a healthy economic backdrop that didn't
exhibit excesses that might lead to inflation. It looks as if the Fed
has reached that comfort level again, as it adopted a neutral stance
toward interest rates following its latest rate hike in November.
While it appears the Fed has indeed adopted a wait-and-see attitude,
market observers remain concerned about several factors and their
effect on both inflation and future Fed policy: the combination of
sustained robust U.S. economic growth, low unemployment and questions
about the sustainability of the productivity growth that has helped
keep inflation at bay. As a result, we expect that short-term interest
rates likely will rise in the first half of 2000, once the uncertainty
surrounding the turn of the century is behind us.
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
preservation of capital and
liquidity
FUND NUMBER: 055
TRADING SYMBOL: FDRXX
START DATE: May 10,1979
SIZE: as of November 30,
1999, more than $37.9
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 % OF FUND'S INVESTMENTS 5/31/99 % OF FUND'S INVESTMENTS
11/30/99 11/30/98
0 - 30 35.8 43.7 33.2
31 - 90 40.5 35.5 33.4
91 - 180 19.7 12.2 29.4
181 - 397 4.0 8.6 4.0
WEIGHTED AVERAGE MATURITY
11/30/99 5/31/99 11/30/98
Fidelity Cash Reserves 62 DAYS 67 Days 70 Days
All Taxable Money Market 54 DAYS 59 Days 59 Days
Funds Average **
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF NOVEMBER 30, 1999 AS OF MAY 31, 1999
Commercial Paper 51.2% Commercial Paper 40.9%
Bank CDs, BAs, TDs, and Bank CDs, BAs, TDs, and
Notes 50.4% Notes 57.4%
Government Securities 0.0% Government Securities 0.8%
Other Investments and Net Other Investments and Net
Other Assets (1.6)%* Other Assets 0.9%
Row: 1, Col: 1, Value: 51.2 Row: 1, Col: 1, Value: 40.9
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 50.4 Row: 1, Col: 3, Value: 57.4
Row: 1, Col: 4, Value: 0.0 Row: 1, Col: 4, Value: nil
Row: 1, Col: 5, Value: 0.0 Row: 1, Col: 5, Value: 0.8
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: 0.9
* OTHER INVESTMENTS AND NET
OTHER ASSETS ARE NOT
INCLUDED IN THE PIE CHART.
** SOURCE: IBC'S MONEY FUND
REPORT(registered trademark)
</TABLE>
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS NOVEMBER 30, 1999
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 33.6%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
DOMESTIC CERTIFICATES OF
DEPOSIT - 1.9%
First Union National Bank,
North Carolina
2/20/00 6.17% (c) $ 232,000 $ 232,000
Fleet National Bank
12/3/99 6.16 (c) 122,000 121,938
Morgan Guaranty Trust Co., NY
2/22/00 6.10 240,000 240,000
US Bank NA, Minnesota
3/20/00 5.95 147,000 147,000
740,938
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - 7.7%
Abbey National Treasury
Services PLC
12/15/99 5.30 100,000 100,000
12/17/99 5.30 125,000 125,000
2/17/00 5.93 170,000 170,000
2/24/00 5.93 325,000 325,000
Bank of Nova Scotia
2/16/00 5.95 100,000 100,000
Bank of Scotland Treasury
Services PLC
2/16/00 5.14 110,000 109,991
4/3/00 6.00 350,000 350,006
Barclays Bank PLC
12/14/99 5.30 50,000 49,999
7/28/00 5.80 175,000 175,000
Bayerische Hypo-und
Vereinsbank AG
3/8/00 6.00 200,000 200,000
Halifax PLC
12/13/99 5.00 175,000 175,000
1/18/00 6.00 300,000 300,000
2/1/00 6.13 350,000 350,000
3/1/00 5.95 105,000 105,000
Nationwide Building Society
2/22/00 5.97 80,000 80,001
3/24/00 5.93 75,000 75,001
Norddeutsche Landesbank
Girozentrale
1/18/00 6.00 45,000 45,000
Northern Rock PLC
3/1/00 6.00 75,000 75,000
2,909,998
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 - 24.0%
Bank of Montreal
3/3/00 5.35% $ 130,000 $ 129,976
Banque Nationale de Paris
12/3/99 5.21 25,000 25,000
3/1/00 6.00 170,000 170,000
8/2/00 5.85 150,000 149,957
Barclays Bank PLC
12/1/99 5.63 (c) 340,000 339,927
12/1/99 5.64 (c) 175,000 174,955
12/15/99 5.53 485,000 485,000
3/1/00 5.30 95,000 94,986
6/14/00 5.66 180,000 179,954
Bayerische Hypo-und
Vereinsbank AG
2/10/00 5.12 170,000 169,987
Canadian Imperial Bank of
Commerce
12/1/99 5.63 (c) 345,000 344,912
2/23/00 5.17 110,000 109,988
2/29/00 5.24 91,000 90,991
5/18/00 5.30 200,000 199,938
Credit Agricole Indosuez
12/1/99 5.40 (c) 125,000 124,875
3/1/00 5.22 150,000 149,989
Credit Communale de Belgique
3/7/00 6.00 195,000 195,000
Deutsche Bank AG
1/13/00 6.00 175,000 175,000
1/28/00 6.00 75,000 74,996
2/10/00 5.11 100,000 99,993
2/16/00 5.12 125,000 124,987
3/2/00 6.00 245,000 245,000
Dresdner Bank AG
12/20/99 5.53 500,000 499,994
12/23/99 5.56 (c) 170,000 169,957
Lloyds Bank PLC
7/17/00 5.70 75,000 74,977
Merita Bank PLC
1/10/00 6.06 50,000 50,000
National Westminster Bank PLC
3/15/00 5.15 150,000 149,983
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
National Westminster Bank PLC
- - continued
7/12/00 5.75% $ 300,000 $ 299,912
Norddeutsche Landesbank
Girozentrale
2/10/00 5.10 60,000 59,996
3/1/00 5.30 105,000 104,987
5/18/00 5.33 75,000 74,977
7/12/00 5.76 95,000 94,972
RaboBank Nederland Coop.
Central
7/12/00 5.75 35,000 34,990
Royal Bank of Canada
12/1/99 5.64 (c) 150,000 149,967
12/20/99 5.95 (c) 120,000 119,959
2/18/00 5.15 125,000 124,991
2/28/00 5.26 70,000 69,993
Royal Bank of Scotland PLC
1/31/00 6.04 345,000 345,000
Societe Generale, France
12/6/99 5.21 305,000 305,000
12/9/99 5.38 (c) 280,000 279,785
12/20/99 5.55 (c) 138,000 137,959
12/29/99 5.60 (c) 121,000 120,874
3/2/00 6.03 105,000 105,000
Svenska Handelsbanken AB
1/18/00 6.07 210,000 210,000
6/12/00 5.60 175,000 174,976
Toronto Dominion Bank
12/8/99 5.22 75,000 75,000
2/18/00 5.15 165,000 164,988
UBS AG
2/28/00 5.20 165,000 164,986
5/18/00 5.35 235,000 234,937
7/5/00 5.80 200,000 199,954
Westdeutsche Landesbank
Girozentrale
12/20/99 5.53 300,000 300,000
2/28/00 5.95 345,000 345,000
9,098,525
TOTAL CERTIFICATES OF DEPOSIT 12,749,461
COMMERCIAL PAPER - 51.2%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
ABN-AMRO North America, Inc.
12/6/99 5.20% $ 87,000 $ 86,939
3/1/00 5.99 170,000 167,465
American Express Credit Corp.
3/1/00 6.00 150,000 147,782
American Home Products Corp.
2/14/00 5.92 50,000 49,401
2/15/00 5.92 25,000 24,697
Aspen Funding Corp.
12/15/99 5.48 (c) 100,000 100,000
1/27/00 6.12 35,000 34,668
1/31/00 6.17 135,000 133,616
Asset Securitization Coop.
Corp.
12/3/99 5.52 (c) 207,000 207,000
12/9/99 5.45 (c) 138,000 137,995
12/10/99 5.45 (c) 230,000 230,000
12/20/99 5.54 (c) 205,000 205,000
1/27/00 6.07 100,000 99,058
2/24/00 6.00 254,000 250,486
Associates Corp. of North
America
3/8/00 5.90 75,000 73,832
Associates First Capital BV
2/8/00 5.95 50,000 49,446
2/9/00 5.95 50,000 49,438
2/11/00 5.95 50,000 49,422
3/7/00 5.98 50,000 49,209
3/8/00 5.98 10,000 9,840
Associates First Capital Corp.
12/13/99 5.39 75,000 74,869
2/17/00 5.92 80,000 78,989
Bank of America Corp.
2/14/00 6.09 85,000 83,941
BankAmerica Corp.
2/24/00 5.90 200,000 197,299
Bradford & Bingley Building
Society
2/17/00 5.95 100,000 98,730
CBA Finance, Inc.
1/18/00 6.01 130,000 128,969
2/17/00 5.94 35,000 34,556
3/22/00 5.94 75,000 73,642
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
CBA Finance, Inc. - continued
5/26/00 6.00% $ 50,000 $ 48,567
Centric Capital Corp.
12/8/99 5.37 62,790 62,725
12/20/99 5.55 25,000 24,927
12/22/99 5.56 31,000 30,900
1/25/00 6.22 26,200 25,955
2/4/00 6.16 20,000 19,781
Chase Manhattan Corp.
4/26/00 6.03 325,000 317,237
CIT Group, Inc.
2/14/00 5.96 120,000 118,533
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
12/1/99 5.65 75,000 75,000
12/7/99 5.36 100,000 99,911
1/13/00 6.08 100,000 99,281
2/4/00 5.99 50,000 49,466
2/8/00 5.98 100,000 98,869
2/9/00 5.98 40,000 39,541
2/10/00 5.98 50,000 49,418
Citicorp
12/14/99 5.52 48,500 48,404
12/20/99 5.55 50,000 49,854
12/21/99 5.55 75,000 74,770
Citigroup, Inc.
12/16/99 5.54 25,000 24,943
ConAgra, Inc.
12/14/99 5.64 30,000 29,939
Corporate Receivables Corp.
12/2/99 5.53 50,000 49,992
12/10/99 5.56 17,600 17,576
12/15/99 5.56 75,000 74,838
1/25/00 6.11 115,000 113,946
1/26/00 6.11 15,000 14,860
2/3/00 6.15 75,000 74,193
2/4/00 6.15 78,000 77,149
2/9/00 6.15 110,000 108,710
2/11/00 6.15 50,000 49,397
Cregem North America, Inc.
2/17/00 5.94 92,500 91,328
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
CXC, Inc.
12/8/99 5.36% $ 100,000 $ 99,896
12/20/99 5.67 (c) 211,000 210,990
2/3/00 6.00 30,000 29,684
2/9/00 6.12 40,000 39,533
Daimler-Chrysler North
America Holding Corp.
12/14/99 5.31 29,000 28,946
2/7/00 5.61 50,000 49,487
2/9/00 5.70 100,000 98,925
2/9/00 5.90 25,000 24,721
2/16/00 5.86 40,000 39,514
2/23/00 6.10 65,000 64,095
2/23/00 6.13 40,000 39,440
3/6/00 6.05 89,000 87,600
3/7/00 5.95 70,000 68,910
3/8/00 6.02 85,000 83,630
Delaware Funding Corp.
12/7/99 5.54 80,236 80,162
1/24/00 6.02 86,323 85,559
2/15/00 6.14 55,000 54,301
2/17/00 6.12 20,000 19,740
Den Danske Corp., Inc.
1/18/00 6.10 65,000 64,480
2/28/00 5.95 65,000 64,058
Deutsche Bank Financial, Inc.
12/8/99 5.21 300,000 299,704
Edison Asset Securitization LLC
2/8/00 5.92 50,000 49,449
2/14/00 6.16 50,000 49,371
3/1/00 5.93 85,109 83,870
3/6/00 5.96 16,000 15,753
3/6/00 6.01 106,000 104,349
3/10/00 5.96 76,000 74,776
3/13/00 5.96 122,647 120,615
3/31/00 5.96 70,000 68,628
Enterprise Funding Corp.
12/1/99 5.75 35,007 35,007
1/28/00 6.21 31,000 30,695
2/9/00 6.16 6,000 5,929
2/24/00 6.01 6,500 6,409
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Enterprise Funding Corp. -
continued
2/24/00 6.04% $ 10,811 $ 10,659
3/13/00 5.98 27,452 26,996
Falcon Asset Securitization
Corp.
12/6/99 5.48 10,112 10,104
12/6/99 5.53 105,425 105,344
12/8/99 5.36 87,000 86,910
12/8/99 5.55 33,575 33,539
12/9/99 5.57 40,000 39,951
12/13/99 5.55 200,000 199,631
12/14/99 5.55 25,450 25,399
12/14/99 5.57 73,910 73,762
12/16/99 5.55 50,000 49,885
12/20/99 5.56 47,320 47,182
12/22/99 5.56 50,230 50,068
1/31/00 6.03 96,000 95,040
2/3/00 6.01 83,000 82,132
2/4/00 6.02 62,000 61,342
2/7/00 6.02 82,000 81,089
2/17/00 5.98 100,000 98,724
2/17/00 5.99 51,625 50,965
2/18/00 6.00 7,000 6,910
2/22/00 5.99 30,000 29,592
Finova Capital Corp.
12/9/99 5.60 (c) 92,000 92,000
Fleet Funding Corp.
2/3/00 6.16 29,087 28,774
2/16/00 6.18 78,000 76,991
Ford Motor Credit Co.
12/2/99 5.55 460,000 459,929
Fortis Funding LLC
3/7/00 5.90 91,000 89,595
3/10/00 5.90 150,000 147,613
GE Capital International
Funding, Inc.
2/22/00 6.09 150,000 147,939
3/10/00 6.11 100,000 98,342
3/13/00 5.91 240,000 236,065
3/15/00 6.06 20,000 19,656
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
General Electric Capital Corp.
2/16/00 5.60% $ 100,000 $ 98,841
2/17/00 5.60 100,000 98,826
2/24/00 5.60 150,000 148,084
3/1/00 6.04 250,000 246,278
3/3/00 6.04 150,000 147,718
3/6/00 5.90 200,000 196,933
3/7/00 5.91 35,000 34,458
3/10/00 5.91 160,000 157,444
3/10/00 6.10 50,000 49,172
General Electric Capital
Services, Inc.
2/14/00 5.60 150,000 148,306
General Electric Credit
Capital Services, Inc.
2/2/00 5.75 30,000 29,707
General Motors Acceptance Corp.
12/1/99 5.73 50,000 50,000
2/14/00 5.96 240,000 237,065
2/16/00 5.60 285,000 281,696
2/22/00 5.90 250,000 246,703
2/23/00 5.60 200,000 197,471
2/23/00 5.90 200,000 197,331
3/6/00 5.90 165,000 162,483
3/7/00 5.90 150,000 147,688
3/7/00 5.91 120,000 118,151
General Motors Corp.
2/14/00 5.98 80,000 79,018
Goldman Sachs Group, Inc.
2/7/00 6.10 125,000 123,583
2/9/00 5.80 230,000 227,484
GTE Corp.
12/3/99 5.59 21,500 21,493
12/6/99 5.58 190,000 189,853
12/10/99 5.60 30,000 29,958
Heller Financial, Inc.
12/6/99 5.61 50,000 49,961
12/13/99 5.57 20,000 19,963
12/14/99 5.57 25,000 24,950
12/15/99 5.63 25,000 24,945
12/16/99 5.64 28,000 27,935
3/6/00 6.14 40,000 39,356
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Household Finance Corp.
12/13/99 5.31% $ 40,000 $ 39,931
2/14/00 5.85 75,000 74,113
J. P. Morgan & Co., Inc.
12/6/99 5.20 150,000 149,894
2/2/00 5.75 60,000 59,413
2/9/00 5.62 75,000 74,205
Kitty Hawk Funding Corp.
12/1/99 5.50 26,044 26,044
12/8/99 5.55 24,500 24,474
1/26/00 6.22 50,000 49,524
2/10/00 5.98 21,694 21,442
2/14/00 5.61 25,806 25,514
2/15/00 5.93 51,259 50,636
2/18/00 5.99 45,283 44,697
Lehman Brothers Holdings, Inc.
1/25/00 6.36 125,000 123,810
2/2/00 6.30 111,000 109,802
Marsh USA, Inc.
2/15/00 5.71 100,000 98,833
3/22/00 5.92 130,000 127,674
MCI WorldCom, Inc.
12/15/99 6.37 (c) 145,000 145,000
Morgan Stanley Dean Witter &
Co.
2/2/00 5.62 260,000 257,520
Nationwide Building Society
3/6/00 6.03 200,000 196,848
5/4/00 5.96 78,500 76,540
New Center Asset Trust
1/31/00 6.12 65,000 64,339
2/10/00 6.00 80,000 79,068
Newport Funding Corp.
12/15/99 5.48 (c) 115,000 115,000
1/26/00 6.16 220,000 217,930
Park Avenue Receivables Corp.
12/7/99 5.57 22,651 22,630
12/10/99 5.56 100,343 100,204
12/15/99 5.54 20,000 19,957
1/26/00 6.22 125,815 124,617
2/15/00 6.13 97,663 96,424
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
PHH Corp.
12/1/99 5.78% $ 25,000 $ 25,000
Preferred Receivables Funding
Corp.
12/10/99 5.53 10,210 10,196
12/16/99 5.57 100,000 99,769
1/26/00 6.14 10,690 10,590
1/27/00 6.14 100,000 99,045
1/31/00 6.01 48,450 47,967
2/3/00 6.00 82,000 81,144
2/4/00 6.00 5,550 5,491
2/8/00 6.00 98,000 96,899
2/14/00 5.99 55,000 54,324
2/17/00 5.99 50,000 49,361
3/20/00 5.97 16,750 16,451
3/21/00 6.01 14,000 13,748
Rohm & Haas Co.
3/8/00 6.35 59,000 58,012
Salomon Smith Barney
Holdings, Inc.
2/8/00 5.63 100,000 98,954
2/9/00 5.90 135,000 133,496
2/14/00 5.85 50,000 49,408
Santander Finance, Inc.
3/14/00 5.96 250,000 245,782
Svenska Handelsbanken, Inc.
3/2/00 6.01 100,000 98,504
The Bear Stearns Companies,
Inc.
2/16/00 5.75 150,000 148,213
2/23/00 5.72 25,000 24,677
Three Rivers Funding Corp.
12/16/99 5.54 25,000 24,943
Triple-A One Funding Corp.
12/8/99 5.56 53,642 53,584
12/14/99 5.56 15,000 14,970
UBS Finance, Inc.
12/7/99 5.27 255,000 254,782
12/13/99 5.00 330,000 329,467
Windmill Funding Corp.
12/7/99 5.36 250,000 249,778
12/8/99 5.57 50,000 49,946
12/13/99 5.57 50,000 49,908
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Windmill Funding Corp. -
continued
12/15/99 5.52% $ 75,000 $ 74,840
12/20/99 5.55 25,000 24,927
1/25/00 6.02 100,000 99,099
1/27/00 6.22 25,000 24,758
1/28/00 6.07 50,000 49,521
2/9/00 6.00 12,000 11,863
2/17/00 6.09 50,000 49,354
2/22/00 5.98 24,000 23,677
2/28/00 6.13 40,000 39,407
3/1/00 6.13 20,000 19,697
Woolwich PLC
2/7/00 5.95 45,000 44,501
2/7/00 6.04 100,000 98,876
TOTAL COMMERCIAL PAPER 19,450,519
FEDERAL AGENCIES - 0.0%
FREDDIE MAC - 0.0%
Discount Notes - 0.0%
12/6/99 5.30 270 270
BANK NOTES - 6.5%
Bank of America NA
2/22/00 6.03 260,000 260,000
2/28/00 5.93 100,000 100,000
3/7/00 5.92 320,000 320,000
Bank One NA, Chicago
12/21/99 6.06 (c) 210,000 209,832
1/19/00 6.17 (c) 200,000 199,876
Comerica Bank, Detroit
12/10/99 5.44 (c) 180,000 179,924
First Union National Bank,
North Carolina
12/1/99 5.70 (c) 116,000 116,000
1/4/00 6.17 (c) 190,000 190,000
1/26/00 6.22 (c) 143,000 143,000
Fleet National Bank
12/1/99 5.71 (c) 150,000 149,956
12/1/99 5.78 (c) 75,000 74,936
BANK NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Key Bank NA
12/16/99 5.56% (c) $ 210,000 $ 210,000
Mellon Bank NA, Pittsburgh
12/1/99 5.63 (c) 85,000 84,979
NationsBank NA
12/1/99 5.65 (c) 100,000 99,983
12/1/99 5.66 (c) 120,000 119,982
TOTAL BANK NOTES 2,458,468
MASTER NOTES - 0.4%
J. P. Morgan Securities, Inc.
12/7/99 5.38 (c) 135,000 135,000
MEDIUM-TERM NOTES - 5.8%
Abbey National Treasury
Services PLC
8/3/00 5.85 150,000 149,952
American Telephone & Telegraph
12/6/99 5.46 (c) 460,000 460,000
Centex Home Mortgage LLC
1/20/00 6.61 (a)(b)(c) 190,000 190,000
CIESCO LP
12/15/99 5.41 (c) 170,000 169,979
CIT Group, Inc.
12/1/99 5.70 (c) 160,000 159,953
Ford Motor Credit Co.
12/1/99 5.70 (c) 228,000 228,000
2/23/00 6.08 (c) 310,000 309,845
General Electric Capital Corp.
1/12/00 6.13 (c) 86,000 86,000
2/14/00 6.01 (c) 100,000 100,000
Goldman Sachs Group L.P.
1/7/00 6.33 (c)(d) 138,000 138,000
1/27/00 6.30 (c)(d) 103,000 103,000
2/10/00 6.12 (a)(c) 95,000 95,000
TOTAL MEDIUM-TERM NOTES 2,189,729
SHORT-TERM NOTES - 3.1%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
Jackson National Life
Insurance Co.
1/1/00 6.23% (c)(d) $ 130,000 $ 130,000
Monumental Life Insurance Co.
12/1/99 5.55 (c)(d) 78,000 78,000
12/1/99 5.58 (c)(d) 115,000 115,000
New York Life Insurance Co.
12/1/99 5.62 (c)(d) 75,000 75,000
12/22/99 6.20 (c)(d) 81,000 81,000
Pacific Life Insurance Co.
12/9/99 5.60 (c)(d) 90,000 90,000
RACERS Series 99 -16MM,
12/2/99 5.43 (a)(c) 121,000 121,000
12/2/99 5.43 (a)(c) 50,000 50,000
SMM Trust Series 1999 E,
1/5/00 6.11 (a)(c) 67,000 67,000
SMM Trust Series 1999-I,
12/27/99 6.10 (a)(c) 78,000 78,000
Strategic Money Market Trust
Series 1999 A6,
1/13/00 6.30 (a)(c) 305,000 305,000
TOTAL SHORT-TERM NOTES 1,190,000
TIME DEPOSITS - 1.0%
Bayerische Hypo-und
Vereinsbank AG
12/1/99 5.75 100,000 100,000
RaboBank Nederland Coop.
Central
12/1/99 5.69 150,000 150,000
Toronto Dominion Bank
12/1/99 5.75 150,000 150,000
TOTAL TIME DEPOSITS 400,000
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 0.0%
MATURITY AMOUNT (000S) VALUE (NOTE 1) (000S)
In a joint trading account $ 3,060 $ 3,060
(U.S. Treasury Obligations)
dated 11/30/99 due 12/1/99
At 5.67%
TOTAL INVESTMENT PORTFOLIO - 38,576,507
101.6%
NET OTHER ASSETS - (1.6)% (595,750)
NET ASSETS - 100% $ 37,980,757
Total Cost for Income Tax Purposes $ 38,576,507
</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 $906,000,000 or 2.4% of net assets.
(b) Security purchased on a delayed delivery or when-issued basis.
(c) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
(d) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE COST (000S)
Goldman Sachs Group L.P.: 1/22/99 $ 103,000
6.30%, 1/27/00
6.33%, 1/7/00 12/7/98 $ 138,000
Jackson National Life 7/6/99 $ 130,000
Insurance Co. 6.23%, 1/1/00
Monumental Life Insurance 7/31/98 - 9/17/98 $ 78,000
Co.: 5.55%, 12/1/99
5.58%, 12/1/99 7/1/98 - 3/12/99 $ 115,000
New York Life Insurance Co.: 8/13/99 $ 75,000
5.62%, 12/1/99
6.20%, 12/22/99 12/21/98 $ 81,000
Pacific Life Insurance Co 8/31/99 $ 90,000
5.60%, 12/9/99
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) NOVEMBER 30, 1999
ASSETS
Investment in securities, at $ 38,576,507
value (including repurchase
agreements of $3,060) - See
accompanying schedule
Receivable for fund shares 480,725
sold
Interest receivable 219,156
Other receivables 20
Prepaid expenses 110
TOTAL ASSETS 39,276,518
LIABILITIES
Payable to custodian bank $ 282
Payable for investments
purchased
Regular delivery 693,509
Delayed delivery 190,000
Payable for fund shares 391,722
redeemed
Distributions payable 3,619
Accrued management fee 6,233
Other payables and accrued 10,396
expenses
TOTAL LIABILITIES 1,295,761
NET ASSETS $ 37,980,757
Net Assets consist of:
Paid in capital $ 37,982,656
Accumulated net realized gain (1,899)
(loss) on investments
NET ASSETS, for 37,981,427 $ 37,980,757
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($37,980,757
(divided by) 37,981,427
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED NOVEMBER 30, 1999
INTEREST INCOME $ 1,839,435
EXPENSES
Management fee $ 61,534
Transfer agent fees 84,785
Accounting fees and expenses 1,043
Non-interested trustees' 114
compensation
Custodian fees and expenses 553
Registration fees 3,084
Audit 163
Legal 110
Interest 6
Miscellaneous 1,309
Total expenses before 152,701
reductions
Expense reductions (486) 152,215
NET INTEREST INCOME 1,687,220
NET REALIZED GAIN (LOSS) ON 221
INVESTMENTS
NET INCREASE IN NET ASSETS $ 1,687,441
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED NOVEMBER 30, 1999 YEAR ENDED NOVEMBER 30, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 1,687,220 $ 1,371,565
Net realized gain (loss) 221 142
NET INCREASE (DECREASE) IN 1,687,441 1,371,707
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (1,687,220) (1,371,565)
from net interest income
Share transactions at net 89,997,182 64,184,824
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 1,646,256 1,338,245
distributions from net
interest income
Cost of shares redeemed (84,362,953) (58,320,882)
NET INCREASE (DECREASE) IN 7,280,485 7,202,187
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 7,280,706 7,202,329
IN NET ASSETS
NET ASSETS
Beginning of period 30,700,051 23,497,722
End of period $ 37,980,757 $ 30,700,051
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED NOVEMBER 30, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .048 .052 .052 .051 .055
Operations Net interest
income
Less Distributions
From net interest income (.048) (.052) (.052) (.051) (.055)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 4.94% 5.34% 5.30% 5.18% 5.67%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 37,981 $ 30,700 $ 23,498 $ 21,241 $ 18,432
(in millions)
Ratio of expenses to average .44% .47% .49% .51% .55%
net assets
Ratio of expenses to average .44% .47% .48% B .51% .55%
net assets after expense
reductions
Ratio of net interest income 4.85% 5.20% 5.22% 5.06% 5.50%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR 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 November 30, 1999
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 or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
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 agreements
were outstanding amounted to $47,800,000. The weighted average
interest rate was 2.125%.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. The values of the securities purchased on a when-issued or
forward commitment basis are identified as such in the fund's schedule
of investments. The fund may receive compensation for interest forgone
in the purchase of a when-issued security. With respect to purchase
commitments, the fund identifies securities as segregated in its
records with a value at least equal to the amount of the commitment.
Losses may arise due to changes in the value of the underlying
securities, if the counterparty does not perform under the contract,
or if the issuer does not issue the securities due to political,
economic, or other factors.
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 $810,000,000 or 2.1% 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 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
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
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 annual rate of .18%. The income-based portion of
this fee was equal to $5,895,000, or an annual rate of .02% 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 annual rate of .24% 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,
effective January 1, 1999. FIDFUNDS provides limited coverage for
certain loss events including issuer default as to payment of
principal or interest and bankruptcy or insolvency of a credit
enhancement provider. The insurance does not cover losses resulting
from changes in interest rates, ratings downgrades or other market
conditions. The fund may be subject to a special assessment of up to
approximately 2.5 times the fund's annual gross premium if covered
losses exceed certain levels. During the period, the fund paid
premiums of $1,321,000 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 the loan
was outstanding amounted to $16,705,000. The weighted average interest
rate was 5.36%. Interest earned from the interfund lending program
amounted to $7,000 and is included in interest income on the Statement
of Operations.
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 $27,000 and
$459,000, respectively, under these arrangements.
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
November 30, 1999, and the results of its operations, the changes in
its net assets and the financial highlights for the periods indicated,
in conformity with generally accepted accounting principles. These
financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the 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 generally
accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at November
30, 1999 by
correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 6, 2000
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 (FASTSM)
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.
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments
Money Management, Inc. (FIMM),
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Boyce I. Greer, Vice President
Fred L. Henning, Jr., Vice President
John J. Todd, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Stanley N. Griffith, Assistant Vice President
John H. Costello, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
William O. McCoy *
Marvin L. Mann *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
Ned C. Lautenbach
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
CAS-ANN-0100 88123
1.539092.102
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 (FASTSM) 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
ANNUAL REPORT
NOVEMBER 30, 1999
(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.
REPORT OF INDEPENDENT 20 The auditors' opinion.
ACCOUNTANTS
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:
U.S. equity indexes once again dominated the financial headlines, led
by the NASDAQ's 15 record highs in 21 November sessions. Meanwhile,
the Standard & Poor's 500SM posted two record closings and the Dow
Jones Industrial Average crept above the 11,000 mark for the first
time since mid-September. However, another Federal Reserve Board
interest rate hike and continued inflation concerns drove down the
price of the benchmark 30-year Treasury.
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.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY US GOVERNMENT RESERVES 4.86% 29.00% 62.07%
Government Money Market Funds 4.39% 26.83% 58.36%
Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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 money market funds
average, which reflects the performance of taxable money market funds
with similar objectives tracked by IBC Financial Data, Inc. The past
one year average represents a peer group of 215 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY US GOVERNMENT RESERVES 4.86% 5.22% 4.95%
Government Money Market Funds 4.39% 4.86% 4.70%
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
11/30/99 8/31/99 6/1/99 3/2/99 12/1/98
Fidelity U.S. Government 5.23% 4.85% 4.58% 4.64% 4.85%
Reserves
Government Money Market Funds 4.80% 4.45% 4.15% 4.19% 4.33%
Average
12/1/99 9/1/99 6/2/99 3/3/99 12/2/98
MMDA 2.07% 2.06% 2.06% 2.16% 2.32%
Fidelity U.S.
Government Reserves
Government Money
Market Funds
Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 5.23
Row: 1, Col: 2, Value: 4.8
Row: 1, Col: 3, Value: 2.07
Row: 2, Col: 1, Value: 4.85
Row: 2, Col: 2, Value: 4.45
Row: 2, Col: 3, Value: 2.06
Row: 3, Col: 1, Value: 4.58
Row: 3, Col: 2, Value: 4.15
Row: 3, Col: 3, Value: 2.06
Row: 4, Col: 1, Value: 4.64
Row: 4, Col: 2, Value: 4.19
Row: 4, Col: 3, Value: 2.16
Row: 5, Col: 1, Value: 4.85
Row: 5, Col: 2, Value: 4.33
Row: 5, Col: 3, Value: 2.32
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 money market funds average and the bank money market
deposit account (MMDA) average. Figures for the government money
market funds average are from IBC Financial Data, 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 12 MONTHS
THAT ENDED NOVEMBER 30, 1999?
A. As we progressed through the fund's fiscal year, the U.S. economy
remained strong and economies abroad revived. This backdrop eventually
led the Federal Reserve Board to take back all three of the short-term
interest-rate cuts it had implemented in late 1998 to maintain global
financial stability. Growth in real GDP - gross domestic product
adjusted for inflation - continued above the rate that is considered
inflationary, driven primarily by consumer spending and business
investment. However, broad inflation measures remained relatively
tame. An exception arose in May, when data from April showed an
unexpected leap in the consumer price index (CPI), its largest
one-month gain in nine years. That report sparked concerns in the
market, and in May the Fed switched from a neutral stance concerning
interest rates to a bias toward raising rates. The market's fears were
confirmed in June, when the Fed raised the rate banks charge each
other for overnight loans - known as the fed funds target rate - from
4.75% to 5.00%. The Fed raised the fed funds rate again, to 5.25% in
August, and to 5.50% in November, taking back the last of 1998's
interest-rate cuts.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. In the last two months of 1998, dampened demand and added supply
caused Fannie Mae and Freddie Mac agency securities to trade at very
attractive yields. I increased the fund's holdings in that area, a
move that helped the fund's performance in early 1999. Through the
first four months of 1999, I focused on the one- to six-month maturity
range, but adopted a cautious approach in the spring. At that time, it
became evident that the Fed was very concerned about the strength of
the domestic economy and the bottoming out of certain inflation
measures, which, taken together, increased the risk of higher
short-term rates. From June on, I kept the fund's average maturity
longer than its peers, ranging from about 60 days up to a high in the
low 80-day range. Admittedly, it's unusual to carry a consistently
longer maturity in a rising interest-rate environment, when one would
normally maintain a shorter maturity to enable the fund to invest in
higher yields quickly. However, shorter-term securities traded at a
premium and, periodically, I purchased securities with six- to
12-month maturities when the market priced in very aggressive Fed
rate-hike expectations. In the third and fourth quarters, I
significantly increased the fund's allocation to variable- and
floating-rate securities, whose interest rates reset based on indexes
such as the prime rate or the three-month LIBOR (London Interbank
Offered Rate). There were two reasons for emphasizing these
securities. First, dealers were offering them at attractive prices.
More importantly, they enabled the fund to capture terrific values
available in certain sectors of the money market more fully than if I
solely utilized fixed-rate government securities. Further, with year
2000 approaching, I started to focus on strategies to earn the highest
possible yield over year-end, while ensuring that the fund maintained
ample liquidity to deal with a variety of potential outcomes.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on November 30, 1999, was 5.23%,
compared to 4.85% 12 months ago. For the 12 months that ended November
30, 1999, the fund had a total return of 4.86%, compared to 4.39% for
the government money market funds average, according to IBC Financial
Data, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. There are clear signs that the downward trend in inflation we've
experienced for some time is reversing. The dollar has weakened
relative to the yen, and we've seen an up-tick in commodity prices. If
factors such as these no longer help subdue inflation amid an economy
that continues to grow at a robust pace, then there is a greater risk
of pricing pressures, which could elicit further action by the Fed.
Looking ahead to next year, the fund will seek to take advantage of
increased issuance and additional liquidity of U.S. government agency
securities. At the same time, the supply of short-term Treasuries will
likely decline. The reduction in short-term Treasuries has caused more
investors to shift to agencies, but, fortunately, agency issuance to
date has kept pace with demand. In addition, I expect to continue
buying longer-term securities when the risk/return trade-off is
favorable.
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 November 30,
1999, 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 % OF FUND'S INVESTMENTS 5/31/99 % OF FUND'S INVESTMENTS
11/30/99 11/30/98
0 - 30 50.3 62.1 43.8
31 - 90 23.5 14.3 26.7
91 - 180 14.2 12.3 22.2
181 - 397 12.0 11.3 7.3
WEIGHTED AVERAGE MATURITY
11/30/99 5/31/99 11/30/98
FIDELITY U.S. GOVERNMENT 60 DAYS 65 Days 65 Days
RESERVES
Government Money Market Funds 54 DAYS 57 Days 56 Days
Average **
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF NOVEMBER 30, 1999 AS OF MAY 31, 1999
Federal Agency Issues 70.6% Federal Agency Issues 70.1%
Repurchase Agreements 28.8% Repurchase Agreements 31.7%
Net Other Assets 0.6% Net Other Assets (1.8)%*
Row: 1, Col: 1, Value: 70.59999999999999 Row: 1, Col: 1, Value: 70.09999999999999
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: 28.8 Row: 1, Col: 4, Value: 31.7
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: 0.6000000000000001 Row: 1, Col: 8, Value: 0.0
</TABLE>
* NET OTHER ASSETS IS NOT INCLUDED IN THE PIE CHART.
**SOURCE: IBCS MONEY FUND REPORT(registered trademark)
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS NOVEMBER 30, 1999
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FEDERAL AGENCIES - 70.6%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
PURCHASE
FANNIE MAE - 22.8%
Agency Coupons - 19.8%
12/1/99 5.62% (a) $ 24,000 $ 23,992
12/2/99 5.23 (a) 15,000 14,993
12/6/99 5.98 (a) 31,000 30,987
12/10/99 5.22 (a) 30,000 29,992
12/27/99 5.40 (a) 31,000 30,993
1/14/00 5.97 (a) 58,000 57,977
2/4/00 4.85 12,000 11,998
2/14/00 5.84 (a) 35,000 34,972
2/22/00 4.93 12,000 12,000
5/5/00 5.04 13,000 12,993
6/7/00 5.25 23,000 22,988
6/9/00 5.38 11,000 10,992
9/25/00 5.82 12,000 11,923
306,800
Discount Notes - 3.0%
3/16/00 5.68 24,000 23,610
5/3/00 5.68 8,000 7,811
7/28/00 5.73 15,000 14,458
45,879
FEDERAL HOME LOAN BANK - 33.7%
Agency Coupons - 28.2%
12/1/99 5.30 (a) 66,000 66,001
12/1/99 5.63 (a) 36,000 35,979
12/1/99 5.79 (a) 15,000 14,991
12/6/99 5.27 (a) 30,000 29,980
12/13/99 5.84 (a) 12,000 11,996
1/4/00 5.92 (a) 58,000 57,966
1/11/00 5.98 (a) 25,000 24,998
1/17/00 5.99 (a) 30,000 29,979
2/11/00 4.92 12,000 11,998
2/16/00 4.90 12,000 12,000
3/1/00 5.00 24,000 23,999
3/3/00 5.06 12,000 11,997
3/8/00 5.17 15,000 14,996
4/5/00 5.03 10,000 9,996
5/19/00 5.13 25,000 24,992
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
6/14/00 5.47% $ 7,000 $ 6,995
8/17/00 5.86 13,000 12,962
11/3/00 6.00 16,000 15,993
11/3/00 6.02 6,000 5,996
12/1/00 6.03 11,000 10,982
434,796
Discount Notes - 5.5%
2/23/00 5.66 35,000 34,550
3/2/00 5.71 18,000 17,743
3/8/00 5.68 10,000 9,850
3/29/00 5.70 24,000 23,560
85,703
FREDDIE MAC - 11.6%
Discount Notes - 11.6%
2/4/00 5.71 39,005 38,611
2/8/00 5.60 34,000 33,640
3/3/00 5.72 36,000 35,483
6/2/00 5.40 15,000 14,607
6/2/00 5.46 14,000 13,629
6/13/00 5.51 12,000 11,661
6/15/00 5.45 12,000 11,661
6/23/00 5.50 11,000 10,672
7/5/00 5.61 9,000 8,711
178,675
STUDENT LOAN MARKETING
ASSOCIATION - 2.5%
Agency Coupons - 2.5%
12/2/99 5.96 (a) 5,000 4,999
12/7/99 6.01 (a) 7,000 6,998
12/7/99 6.06 (a) 16,000 15,995
12/7/99 5.49 (a) 10,000 9,999
37,991
TOTAL FEDERAL AGENCIES 1,089,844
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 28.8%
MATURITY AMOUNT (000S) VALUE (NOTE 1) (000S)
In a joint trading account
(U.S. Government
Obligations) dated:
11/17/99 due 12/1/99 At 5.53% $ 55,118 $ 55,000
11/19/99 due:
12/1/99 At 5.53% 55,101 55,000
12/2/99 At 5.53% 55,110 55,000
11/30/99 due 12/1/99 At 5.73% 278,784 278,740
TOTAL REPURCHASE AGREEMENTS 443,740
TOTAL INVESTMENT PORTFOLIO - 1,533,584
99.4%
NET OTHER ASSETS - 0.6% 8,595
NET ASSETS - 100% $ 1,542,179
Total Cost for Income Tax Purposes $ 1,533,584
</TABLE>
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
INCOME TAX INFORMATION
A total of 24.41% of the dividends distributed during the fiscal year
was derived from interest on U.S Government securities which is
generally exempt from state income tax (unaudited). The fund will
notify shareholders in January 2000 of the applicable percentage for
use in preparing 1999 income tax returns.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) NOVEMBER 30, 1999
ASSETS
Investment in securities, at $ 1,533,584
value (including repurchase
agreements of $443,740) -
See accompanying schedule
Receivable for fund shares 16,169
sold
Interest receivable 7,156
Prepaid expenses 1
TOTAL ASSETS 1,556,910
LIABILITIES
Payable for investments $ 10,982
purchased
Payable for fund shares 3,049
redeemed
Distributions payable 135
Accrued management fee 244
Other payables and accrued 321
expenses
TOTAL LIABILITIES 14,731
NET ASSETS $ 1,542,179
Net Assets consist of:
Paid in capital $ 1,542,179
NET ASSETS, for 1,542,542 $ 1,542,179
shares outstanding
NET ASSET VALUE, offering $1.00
price and redemption price
per share ($1,542,179
(divided by) 1,542,542
shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED NOVEMBER 30, 1999
INTEREST INCOME $ 77,632
EXPENSES
Management fee $ 2,560
Transfer agent fees 3,087
Accounting fees and expenses 154
Non-interested trustees' 5
compensation
Custodian fees and expenses 20
Registration fees 248
Audit 30
Legal 5
Miscellaneous 12
Total expenses before 6,121
reductions
Expense reductions (92) 6,029
NET INTEREST INCOME 71,603
NET REALIZED GAIN (LOSS) ON 13
INVESTMENTS
NET INCREASE IN NET ASSETS $ 71,616
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED NOVEMBER 30, 1999 YEAR ENDED NOVEMBER 30, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 71,603 $ 67,494
Net realized gain (loss) 13 61
NET INCREASE (DECREASE) IN 71,616 67,555
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (71,603) (67,494)
from net interest income
Share transactions at net 1,804,876 1,749,474
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 68,873 64,621
distributions from net
interest income
Cost of shares redeemed (1,758,851) (1,677,134)
NET INCREASE (DECREASE) IN 114,898 136,961
NET ASSETS AND SHARES
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (DECREASE) 114,911 137,022
IN NET ASSETS
NET ASSETS
Beginning of period 1,427,268 1,290,246
End of period $ 1,542,179 $ 1,427,268
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED NOVEMBER 30, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .048 .052 .051 .050 .055
Operations Net interest
income
Less Distributions
From net interest income (.048) (.052) (.051) (.050) (.055)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 4.86% 5.29% 5.26% 5.12% 5.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,542 $ 1,427 $ 1,290 $ 1,243 $ 1,188
(in millions)
Ratio of expenses to average .41% .45% .48% .51% .55%
net assets
Ratio of expenses to average .40% B .44% B .48% .50% B .55%
net assets after expense
reductions
Ratio of net interest income 4.77% 5.16% 5.13% 5.02% 5.43%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR 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 November 30, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity U.S. Goverment 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.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
2. OPERATING POLICIES - CONTINUED
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place 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.
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 NOVEMBER 17, 1999, DUE DECEMBER 1, 1999 AT 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $250,000,000
Aggregate maturity amount of agreements $250,537,639
Aggregate market value of transferred assets $256,020,604
Coupon rates of transferred assets 4.50% to 12.00%
Maturity dates of transferred assets 9/20/01 to 12/1/29
DATED NOVEMBER 19, 1999, DUE DECEMBER 1, 1999 AT 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $250,000,000
Aggregate maturity amount of agreements $250,460,833
Aggregate market value of transferred assets $256,021,234
Coupon rates of transferred assets 6.00% to 13.50%
Maturity dates of transferred assets 6/20/00 to 11/20/29
</TABLE>
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
<TABLE>
<CAPTION>
<S> <C>
DATED NOVEMBER 19, 1999, DUE DECEMBER 2, 1999 AT 5.53%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $250,000,000
Aggregate maturity amount of agreements $250,499,236
Aggregate market value of transferred assets $258,549,457
Coupon rates of transferred assets 5.50% to 11.00%
Maturity dates of transferred assets 11/15/00 to 10/15/29
DATED NOVEMBER 30, 1999, DUE DECEMBER 1, 1999 AT 5.73%
Number of dealers or banks 4
Maximum amount with one dealer or bank 46.4%
Aggregate principal amount of agreements $2,052,112,000
Aggregate maturity amount of agreements $2,052,438,419
Aggregate market value of transferred assets $2,096,659,514
Coupon rates of transferred assets 0.00% to 14.05%
Maturity dates of transferred assets 12/2/99 to 10/1/37
</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
annual rate of .17%. The income-based portion of this fee was equal to
$158,000, or an annual rate of .01% of the fund's average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, Fidelity
Investments Money Management, Inc., a wholly
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE - CONTINUED
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 annual rate of .21% 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
the SEC, the fund, along with other money market funds advised by FMR
or its affiliates, has entered into insurance agreements with FIDFUNDS
Mutual Limited (FIDFUNDS), an affiliated mutual insurance company,
effective January 1, 1999. FIDFUNDS provides limited coverage for
certain loss events including issuer default as to payment of
principal or interest and bankruptcy or insolvency of a credit
enhancement provider. The insurance does not cover losses resulting
from changes in interest rates, ratings downgrades or other market
conditions. The fund may be subject to a special assessment of up to
approximately 2.5 times the fund's annual gross premium if covered
losses exceed certain levels. During the period, the fund paid
premiums of $9,000 to FIDFUNDS, which are being amortized over one
year.
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 $92,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Phillips Street Trust and the Shareholders
of Fidelity U.S. Government 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 U.S. Government Reserves (a fund of Fidelity Phillips Street
Trust) at November 30, 1999, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Fidelity U.S. Government 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 generally accepted auditing
standards which require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements are free
of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities at November 30, 1999 by
correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 6, 2000
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 (FASTSM)
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
455 Market 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
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 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 North 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
200 North Broadway
St. Louis, 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 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
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 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
8180 Greensboro 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. (FIMM)
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Boyce I. Greer, Vice President
Fred L. Henning, Jr., Vice President
Robert A. Litterst, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Stanley N. Griffith, Assistant Vice President
John H. Costello, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
William O. McCoy *
Marvin L. Mann *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
Ned C. Lautenbach
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
FUS-ANN-0100 88397
1.539126.102
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 (FASTSM) 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
