FIDELITY U.S. TREASURY INCOME PORTFOLIO
INVESTMENTS/JULY 31, 1994
(Showing Percentage of Total Value of Investments)
ANNUALIZED ANNUALIZED
YIELD AT YIELD AT
DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE
DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1)
U.S. Treasury Obligations - 100.0%
U.S. TREASURY BILLS - 64.8%
8/4/94 3.96% $ 3,394,000 $ 3,392,891 9931342H
8/4/94 4.07 25,000,000 24,991,615 9931342M
8/18/94 4.25 50,000,000 49,900,833 9931343A
8/18/94 4.30 7,957,000 7,941,049 9931342R
8/25/94 4.23 30,839,000 30,753,025 9931343Q
8/25/94 4.27 14,713,000 14,671,656 9931342Y
9/1/94 4.17 44,411,000 44,253,248 9931344A
9/1/94 4.19 15,000,000 14,946,396 9931343X
9/8/94 4.06 20,430,000 20,343,093 9931345B
9/8/94 4.10 18,701,000 18,620,658 9931344X
9/15/94 4.26 5,595,000 5,565,451 9931345S
9/15/94 4.28 11,994,000 11,930,582 9931343Y
9/15/94 4.39 6,564,000 6,528,513 9931343H
9/15/94 4.45 29,781,000 29,617,763 9931342X
9/22/94 4.24 6,627,000 6,586,892 9931344H
9/22/94 4.25 15,690,000 15,594,361 9931345V
9/22/94 4.29 18,512,000 18,398,758 9931344B
9/29/94 4.26 1,762,000 1,749,843 9931344U
9/29/94 4.49 21,270,000 21,116,271 9931342V
10/6/94 4.35 3,942,000 3,910,924 9931345L
10/6/94 4.36 10,743,000 10,658,112 9931345K
10/6/94 4.38 25,000,000 24,801,541 9931345J
10/13/94 4.28 1,951,000 1,934,285 9931344S
10/13/94 4.30 25,000,000 24,785,056 9931344R
10/20/94 4.42 4,745,000 4,698,921 9931346D
10/20/94 4.43 10,956,000 10,849,118 9931346G
10/20/94 4.53 1,372,000 1,358,356 9931345T
10/20/94 4.55 15,097,000 14,946,869 9931343V
10/27/94 4.39 4,740,000 4,690,343 9931345X
10/27/94 4.39 5,323,000 5,267,235 9931345M
10/27/94 4.53 29,935,000 29,613,436 9931343R
11/3/94 4.45 15,000,000 14,827,863 9931345W
11/17/94 4.70 50,000,000 49,310,750 9931343T
12/8/94 4.59 40,395,000 39,745,078 9931344K
12/8/94 4.60 15,322,000 15,075,207 9931344L
12/8/94 4.61 2,605,000 2,562,901 9931344M
12/15/94 4.60 10,000,000 9,830,189 9931344N
12/22/94 4.78 29,046,000 28,506,035 9931345F
1/26/95 4.78 4,773,000 4,662,789 9931346H
648,937,906
U.S. TREASURY NOTES - 35.2%
8/15/94 3.78% $ 15,000,000 $ 15,017,444 993993EA
8/15/94 3.82 4,428,000 4,433,071 993993FC
8/15/94 3.94 474,000 474,833 993993FL
8/15/94 3.95 25,000,000 25,081,812 993993FK
8/15/94 4.23 15,000,000 15,047,102 993993HJ
8/15/94 4.52 35,000,000 35,030,222 993993GE
8/15/94 4.80 23,227,000 23,294,523 993993HF
9/30/94 4.29 18,000,000 18,118,040 993993GT
9/30/94 4.33 27,360,000 27,357,624 993993GX
10/15/94 4.39 6,718,000 6,784,123 993993GV
10/15/94 4.40 10,000,000 10,097,852 993993HD
10/15/94 4.49 40,000,000 40,383,064 993993HH
10/31/94 4.43 10,000,000 9,992,101 993993HK
10/31/94 4.58 10,434,000 10,421,897 993993HS
11/15/94 4.56 2,205,000 2,213,186 993993GW
11/15/94 4.57 26,420,000 26,627,326 993993GQ
11/15/94 4.58 17,487,000 17,550,896 993993GU
11/15/94 4.59 10,000,000 10,194,429 993993HA
11/15/94 4.60 33,965,000 34,622,475 993993HN
11/15/94 4.62 18,902,000 19,088,024 993993HC
TOTAL U.S TREASURY OBLIGATIONS 351,830,044
TOTAL INVESTMENTS - 100% $ 1,000,767,950
Total Cost for Income Tax Purposes - $1,000,767,950
INCOME TAX INFORMATION:
At July 31, 1994, the fund had a capital loss carryforward of approximately
$222,000 of which $60,000, and $162,000 will expire on July 31, 2001 and
2002, respectively.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
DRAFT
July 31, 1994
ASSETS
Investment in securities, at value $ 1,000,767,950
(Note 1) - See accompanying
schedule
Receivable for investments sold 40,305,000
Interest receivable 11,094,211
TOTAL ASSETS 1,052,167,161
LIABILITIES
Share transactions in process $ 141,471
Dividends payable 2,675,166
Accrued management fee 180,908
TOTAL LIABILITIES 2,997,545
NET ASSETS $ 1,049,169,616
Net Assets consist of:
Paid in capital $ 1,049,189,264
Accumulated net realized gain (19,648)
(loss) on investments
NET ASSETS, for 1,049,189,264 $ 1,049,169,616
shares outstanding
NET ASSET VALUE, offering price $1.00
and redemption price per share
($1,049,169,616(divided by)
1,049,189,264 shares)
Statement of Operations
DRAFT
Year Ended July 31, 1994
INTEREST INCOME $ 38,429,861
EXPENSES
Management fee (Note 2) $ 4,716,697
Non-interested trustees' 7,052
compensation
Total expenses before 4,723,749
reductions
Expense reductions (2,474,345) 2,249,404
(Note 3)
NET INTEREST INCOME 36,180,457
NET REALIZED GAIN (LOSS) ON (162,127)
INVESTMENTS (NOTE 1)
NET INCREASE IN NET ASSETS $ 36,018,330
RESULTING FROM OPERATIONS
Statement of Changes in Net Assets
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JULY 31,
1994 1993
INCREASE (DECREASE) IN NET ASSETS
Operations $ 36,180,457 $ 35,642,094
Net interest income
Net realized gain (loss) (162,127) (59,984)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING
FROM OPERATIONS 36,018,330 35,582,110
Dividends to shareholders from net interest income (36,180,457) (35,642,094)
Share transactions at net asset value of $1.00 per share 4,258,629,047 5,005,239,937
Proceeds from sales of shares
Reinvestment of dividends from net interest income 9,408,877 11,294,869
Cost of shares redeemed (4,266,497,201) (5,166,243,130)
Net increase (decrease) in net assets and shares resulting
from share transactions 1,540,723 (149,708,324)
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,378,596 (149,768,308)
NET ASSETS
Beginning of period 1,047,791,020 1,197,559,328
End of period $ 1,049,169,616 $ 1,047,791,020
</TABLE>
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JULY 31, 1994
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity U.S. Treasury Income Portfolio (the fund) is a fund of Daily Money
Fund (the trust) and is authorized to issue an unlimited number of shares.
The trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company
organized as a Delaware business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 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 all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between 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. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .42% of the fund's average net
assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
3. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .20% of average net assets. For the
period, the reimbursement reduced the expenses by $2,474,345.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Daily Money Fund and the Shareholders of Fidelity U.S.
Treasury Income Portfolio:
We have audited the accompanying statement of assets and liabilities of
Daily Money Fund: Fidelity U.S. Treasury Income Portfolio, including the
schedule of portfolio investments, as of July 31, 1994, and the related
statement of operations for the year then ended, the statement of changes
in net assets for each of the two years in the period then ended and the
financial highlights for each of the three years in the period then ended
and for the period October 3, 1990 (commencement of Operations) to July 31,
1991. These financial statements and financial highlights are the
responsibility of the fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
investments and cash held by the custodian as of July 31, 1994. An audit
also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Daily Money Fund: Fidelity U.S. Treasury Income Portfolio as of July 31,
1994, the results of its operations for the year then ended, the changes in
its net assets for each of the two years in the period then ended, and the
financial highlights for each of the three years in the period then ended,
and for the period October 3, 1990 (commencement of operations) to July 31,
1991 in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
August 25, 1994
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK AND FUND
SHARES ARE NOT BACKED OR GUARANTEED BY
ANY BANK OR INSURED BY THE FDIC.
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