FIDELITY U.S. TREASURY INCOME PORTFOLIO
SEMIANNUAL REPORT
JANUARY 31, 1994
FIDELITY U.S. TREASURY INCOME PORTFOLIO
INVESTMENTS/JANUARY 31, 1994 (UNAUDITED)
(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 - 60.8%
2/3/94 3.08% $ 33,000 $ 32,994
2/3/94 3.12 13,289,000 13,286,719
2/10/94 3.13 14,598,000 14,586,723
2/10/94 3.15 59,537,000 59,490,616
2/17/94 3.13 2,706,000 2,702,266
2/24/94 3.13 5,204,000 5,193,677
2/24/94 3.15 8,952,000 8,934,270
3/3/94 3.13 29,887,000 29,809,667
3/10/94 3.14 30,516,000 30,418,459
3/10/94 3.19 14,214,000 14,167,836
3/17/94 3.11 4,799,000 4,781,052
3/17/94 3.15 39,391,000 39,240,548
4/7/94 3.14 5,706,000 5,674,114
4/7/94 3.15 3,373,000 3,354,121
4/7/94 3.23 26,208,000 26,056,813
4/14/94 3.12 50,000,000 49,691,000
4/14/94 3.14 5,949,000 5,912,235
4/14/94 3.20 6,974,000 6,929,924
4/21/94 3.18 27,621,000 27,431,282
4/21/94 3.21 40,000,000 39,722,183
4/28/94 3.28 2,162,000 2,145,318
5/5/94 3.12 54,168,000 53,735,604
5/5/94 3.26 573,000 568,248
5/12/94 3.16 31,346,000 31,074,335
5/12/94 3.20 30,000,000 29,736,667
5/12/94 3.21 4,201,000 4,164,008
5/19/94 3.23 20,000,000 19,810,372
5/19/94 3.24 3,293,000 3,261,680
5/26/94 3.26 25,000,000 24,745,875
5/26/94 3.30 3,790,000 3,750,935
6/2/94 3.32 5,334,000 5,275,375
6/9/94 3.27 13,869,000 13,710,462
6/9/94 3.28 25,000,000 24,712,889
6/16/94 3.26 4,199,000 4,148,455
7/7/94 3.21 2,207,000 2,176,779
7/28/94 3.39 4,575,000 4,501,221
8/25/94 3.24 25,000,000 24,547,292
8/25/94 3.35 1,246,000 1,222,940
640,704,954
U.S. TREASURY NOTES - 39.2%
2/28/94 3.17% $ 40,000,000 $ 40,063,621
2/28/94 3.19 4,790,000 4,797,556
3/31/94 3.15 25,000,000 25,100,183
3/31/94 3.20 30,000,000 30,117,540
3/31/94 3.21 25,660,000 25,870,442
3/31/94 3.25 2,215,000 2,223,502
4/15/94 3.16 12,467,000 12,560,029
4/15/94 3.24 5,402,000 5,441,596
4/30/94 3.16 9,370,000 9,416,604
4/30/94 3.17 26,430,000 26,564,008
4/30/94 3.19 49,940,000 50,190,598
4/30/94 3.20 9,290,000 9,336,305
4/30/94 3.23 25,000,000 25,120,181
5/15/94 3.15 20,000,000 20,207,015
5/15/94 3.24 10,000,000 10,275,273
5/15/94 3.31 10,000,000 10,171,770
6/30/94 3.18 1,535,000 1,546,181
6/30/94 3.24 25,000,000 25,167,600
6/30/94 3.30 30,580,000 30,788,469
7/31/94 3.32 10,000,000 10,040,463
8/15/94 3.14 18,280,000 18,795,936
8/15/94 3.15 13,055,000 13,422,100
8/15/94 3.17 6,000,000 6,113,617
413,330,589
TOTAL INVESTMENTS - 100% $ 1,054,035,543
Total Cost for Income Tax Purposes - $1,054,035,543
INCOME TAX INFORMATION:
At July 31, 1993, the fund had a capital loss carryforward of approximately
$60,000 which will expire on July 31, 2001.
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
DRAFT
January 31, 1994 (Unaudited)
ASSETS
Investment in securities, at value $ 1,054,035,543
(Note 1) - See accompanying
schedule
Interest receivable 7,403,587
TOTAL ASSETS 1,061,439,130
LIABILITIES
Dividends payable $ 2,533,474
Accrued management fee 219,078
TOTAL LIABILITIES 2,752,552
NET ASSETS $ 1,058,686,578
Net Assets consist of:
Paid in capital $ 1,058,557,384
Accumulated net realized gain 129,194
(loss) on investments
NET ASSETS, for 1,058,557,384 $ 1,058,686,578
shares outstanding
NET ASSET VALUE, offering price $1.00
and redemption price per share
($1,058,686,578 (divided by)
1,058,557,384 shares)
Statement of Operations
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended January 31, 1994 (Unaudited)
INTEREST INCOME $ 18,063,349
EXPENSES
Management fee (Note 2) $ 2,396,541
Non-interested trustees' 3,558
compensation
Total expenses before 2,400,099
reductions
Expense reductions (Note 3) (1,257,194) 1,142,905
NET INTEREST INCOME 16,920,444
NET REALIZED GAIN (LOSS) ON (13,285)
INVESTMENTS (NOTE 1)
NET INCREASE IN NET ASSETS $ 16,907,159
RESULTING FROM OPERATIONS
</TABLE>
Statement of Changes in Net Assets
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1994 JULY 31,
(UNAUDITED) 1993
INCREASE (DECREASE) IN NET ASSETS
Operations $ 16,920,444 $ 35,642,094
Net interest income
Net realized gain (loss) on investments (13,285) (59,984)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 16,907,159 35,582,110
Dividends to shareholders from net interest income (16,920,444) (35,642,094)
Share transactions at net asset value of $1.00 per share 2,408,317,016 5,005,239,937
Proceeds from sales of shares
Reinvestment of dividends from net interest income 4,487,356 11,294,869
Cost of shares redeemed (2,401,895,529) (5,166,243,130)
Net increase (decrease) in net assets and shares resulting from share transactions10,908,843 (149,708,324)
TOTAL INCREASE (DECREASE) IN NET ASSETS 10,895,558 (149,768,308)
NET ASSETS
Beginning of period 1,047,791,020 1,197,559,328
End of period $ 1,058,686,578 $ 1,047,791,020
</TABLE>
Financial Highlights
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED OCTOBER 3, 1990
ENDED (COMMENCEMENT
JANUARY 31, OF OPERATIONS) TO
1994 JULY 31, JULY 31,
(UNAUDITED) 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value,
beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment
Operations .015 .031 .045 .055
Net interest income
Dividends from net
interest income (.015) (.031) (.045) (.055)
Net asset value,
end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN (dagger) . 1.50% 3.10% 4.64% 5.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of
period (000 omitted) $ 1,058,687 $ 1,047,791 $ 1,197,559 $ 705,543
Ratio of expenses to
average net assets
(dagger)(dagger) .20%* .20% .20% .03%*
Ratio of expenses to
average net assets
before expense reductions
(dagger)(dagger) .42%* .42% .42% .42%*
Ratio of net interest
income to average net
assets 2.96%* 3.05% 4.43% 6.34%*
</TABLE>
* ANNUALIZED
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED
AND WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN.
(dagger)(dagger) SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JANUARY 31, 1994 (UNAUDITED)
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. At a
special meeting of the shareholders of the fund held on March 24, 1993,
shareholders approved an Agreement and Plan of Conversion and Termination
(the Plan of Conversion), providing for the conversion of the fund from a
separate series of a Massachusetts business trust, to a separate series of
a Delaware business trust, effective September 29, 1993. The individual
investment objective, policies and limitations of the fund remain the same.
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.
In connection with the Plan of Conversion, a new Management Contract, new
Sub-Advisory Agreement and new Distribution and Service Plan identical to
those previously in effect became effective on September 29, 1993.
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 $1,257,194.
4. BENEFICIAL INTEREST.
At the end of the period, 2 shareholders were each record owners of more
than 10% of the total outstanding shares of the fund, totaling 41%.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS
PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS CORPORATION IS A
BANK AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED BY
THE FDIC.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Thomas D. Maher, ASSISTANT VICE PRESIDENT
Gary L. French, TREASURER
John H. Costello, ASSISTANT TREASURER
Arthur S. Loring, SECRETARY
TRUSTEES
J. Gary Burkhead
Ralph F. Cox
Phyllis Burke Davis
Richard J. Flynn
Edward C. Johnson 3d
E. Bradley Jones
Donald J. Kirk
Peter S. Lynch
Edward H. Malone
Marvin L. Mann
Gerald C. McDonough
Thomas R. Williams
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND
SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company
Boston, MA
CUSTODIAN
Morgan Guaranty Trust Company of New York
New York, NY
FUST-3-94S
