(registered trademark)
CAPITAL
RESERVES
PORTFOLIOS
ANNUAL REPORT
JULY 31, 1995
CAPR-ANN-0995
3346
CONTENTS
SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
CAPITAL RESERVES PORTFOLIOS:
MONEY MARKET PORTFOLIO 3
U.S. GOVERNMENT PORTFOLIO 11
MUNICIPAL MONEY MARKET PORTFOLIO 16
NOTES TO THE FINANCIAL STATEMENTS 26
REPORTS OF INDEPENDENT ACCOUNTANTS 29
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUNDS 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 RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ
IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
CAPITAL RESERVES: MONEY MARKET PORTFOLIO
INVESTMENTS JULY 31, 1995
Showing Percentage of Total Value of Investments
(c)BANKERS' ACCEPTANCES - 1.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
DOMESTIC BANKERS' ACCEPTANCES - 0.8%
CoreStates Bank of Delaware, N.A.
10/2/95 6.89% $ 3,038,718 $ 3,004,178
1/19/96 5.78 5,000,000 4,866,525
7,870,703
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.1%
Dai-Ichi Kangyo Bank, Ltd.
9/29/95 5.94 6,100,000 6,041,716
Sanwa Bank, Ltd.
9/12/95 6.37 4,600,000 4,566,888
10,608,604
TOTAL BANKERS' ACCEPTANCES 18,479,307
(c)CERTIFICATES OF DEPOSIT - 21.5%
CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 3.6%
ABN-AMRO Bank
8/3/95 6.25 5,000,000 5,000,003
9/20/95 6.19 5,000,000 5,000,000
9/25/95 6.00 5,000,000 5,000,000
10/19/95 6.25 15,000,000 15,000,000
Sanwa Bank, Ltd.
8/15/95 6.04 5,000,000 5,000,019
35,000,022
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 11.3%
Banque Nationale de Paris
10/31/95 5.75 5,000,000 5,000,249
Bayerische Hypotheken-und Weschel
11/2/95 5.75 5,000,000 5,000,127
11/8/95 6.03 5,000,000 5,000,626
Bayerische Vereinsbank A.G.
10/31/95 5.75 5,000,000 5,000,000
Canadian Imperial Bank of Commerce
9/5/95 5.88 10,000,000 10,000,930
9/29/95 5.90 5,000,000 5,000,000
11/1/95 6.25 4,000,000 3,998,586
Credit Suisse
11/27/95 5.75 5,000,000 5,000,000
Dresdner Bank, A.G.
9/12/95 5.75 5,000,000 5,000,000
Mitsubishi Bank, Ltd.
8/31/95 6.01 10,000,000 10,000,000
Rabobank Nederland, N.V.
11/21/95 5.75 5,000,000 5,000,000
2/16/96 6.32 2,000,000 2,005,718
(c)CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Societe Generale
8/14/95 6.02% $ 10,000,000 $ 10,000,000
8/21/95 6.00 10,000,000 10,000,000
Sumitomo Bank, Ltd.
8/7/95 6.01 5,000,000 5,000,000
8/14/95 6.05 5,000,000 5,000,000
8/22/95 6.03 5,000,000 5,000,000
Swiss Bank Corp.
10/17/95 5.73 10,000,000 10,000,000
111,006,236
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 1.0 %
Bank of America National Trust & Savings Assoc.
9/29/95 5.91 5,000,000 5,000,000
11/27/95 6.00 5,000,000 5,000,000
10,000,000
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 5.6%
Bayerische Hypotheken-und Weschel
10/16/95 5.75 5,000,000 5,000,104
Deutsche Bank, A.G.
4/12/96 5.70 5,000,000 5,026,930
Mitsubishi Bank, Ltd.
8/10/95 6.04 5,000,000 5,000,085
Royal Bank of Scotland, PLC
10/27/95 6.00 5,000,000 5,011,007
Sanwa Bank, Ltd.
8/7/95 6.02 5,000,000 4,999,824
Societe Generale
12/4/95 6.37 5,000,000 5,000,090
Toronto-Dominion Bank
10/2/95 5.90 5,000,000 5,000,000
12/11/95 5.74 15,000,000 15,015,869
Westdeutsche Landesbank
11/1/95 5.75 5,000,000 5,000,045
55,053,954
TOTAL CERTIFICATES OF DEPOSIT 211,060,212
(c)COMMERCIAL PAPER - 55.8%
AVCO Financial Services, Inc.
8/28/95 6.05 20,000,000 19,910,750
10/5/95 6.00 5,000,000 4,946,736
American Express Credit Corp.
8/9/95 6.21 5,000,000 4,993,244
8/14/95 6.20 5,000,000 4,989,031
(c)COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
American Express Credit Corp. - continued
8/30/95 6.17% $ 3,000,000 $ 2,985,379
9/20/95 6.04 5,000,000 4,958,889
11/9/95 5.89 10,000,000 9,840,278
11/16/95 5.75 5,000,000 4,916,183
American Home Food Products, Inc.
9/20/95 5.83 5,000,000 4,959,861
American Home Products
9/7/95 5.99 6,000,000 5,963,493
9/22/95 5.83 3,163,000 3,136,638
American Telephone & Telegraph Co.
9/27/95 6.09 5,000,000 4,952,975
Associates Corp. of North America
9/28/95 6.10 5,000,000 4,952,069
BHF Finance (Delaware), Inc.
10/12/95 5.75 5,000,000 4,943,300
Bear Stearns Cos., Inc.
8/1/95 6.06 6,000,000 6,000,000
8/1/95 6.13 10,000,000 10,000,000
8/18/95 6.00 20,000,000 19,943,711
Beneficial Corp.
8/29/95 6.01 15,000,000 14,930,933
9/18/95 5.99 5,000,000 4,960,667
Bradford & Bingley Building Society
10/19/95 5.75 5,000,000 4,937,788
CIT Group Holdings, Inc.
9/18/95 6.06 5,000,000 4,960,400
9/21/95 6.20 5,000,000 4,957,217
Campbell Soup Co.
11/6/95 6.07 310,000 305,072
Canadian Wheat Board
11/6/95 6.00 10,000,000 9,843,049
Chrysler Financial Corporation
8/28/95 6.05 10,000,000 9,955,000
8/29/95 6.06 2,000,000 1,990,667
Commerzbank U.S. Finance, Inc.
11/15/95 6.08 3,100,000 3,046,146
11/20/95 6.29 7,200,000 7,065,246
CoreStates Capital Corp.
8/8/95 5.85 (a) 10,000,000 10,000,000
8/15/95 5.84 (a) 4,000,000 4,000,000
8/15/95 5.87 (a) 5,000,000 5,000,000
Den Danske Corp., Inc.
10/19/95 5.77 10,000,000 9,875,136
Electronic Data Systems Corp.
9/15/95 5.78 6,000,000 5,957,100
Ford Motor Credit Corp.
8/21/95 6.03 4,000,000 3,986,800
8/30/95 6.23 15,000,000 14,926,533
9/11/95 6.25 5,000,000 4,965,321
10/27/95 5.86 9,000,000 8,875,590
(c)
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Ford Motor Credit, PLC
8/1/95 6.10% $ 6,000,000 $ 6,000,000
Generale Bank
10/17/95 6.07 5,000,000 4,936,689
General Electric Capital Corp.
8/1/95 6.09 (a) 5,000,000 5,000,000
9/15/95 5.94 5,000,000 4,963,313
9/15/95 6.68 4,000,000 3,967,900
10/11/95 6.79 7,300,000 7,206,418
10/12/95 6.66 3,000,000 2,961,720
11/1/95 6.13 10,000,000 9,847,944
General Electric Corp.
9/27/95 6.25 10,000,000 9,903,892
General Motors Acceptance Corp.
8/2/95 6.19 12,000,000 11,997,970
8/16/95 6.12 5,000,000 4,987,438
8/16/95 6.15 5,000,000 4,987,396
8/22/95 6.10 3,000,000 2,989,483
9/15/95 6.05 5,000,000 4,962,688
Goldman Sachs Group, L.P. (The)
9/18/95 6.02 9,000,000 8,929,080
Hanson Finance (UK), PLC
8/7/95 6.03 15,000,000 14,985,150
9/13/95 5.93 11,000,000 10,923,006
Household Finance Corp.
10/25/95 5.80 4,000,000 3,945,978
IBM Corp.
9/1/95 5.97 5,000,000 4,974,597
International Nederlanden U.S. Funding Corp.
8/28/95 6.35 6,000,000 5,972,325
Merrill Lynch & Co., Inc.
9/28/95 6.00 5,000,000 4,952,633
Morgan Stanley Group, Inc.
8/31/95 6.01 10,000,000 9,950,750
10/6/95 5.91 5,000,000 4,946,650
National Rural Util. Coop. Fin. Corp.
10/19/95 5.91 8,000,000 7,898,178
10/31/95 5.86 5,000,000 4,927,453
11/15/95 5.90 5,000,000 4,915,200
11/16/95 5.91 4,250,000 4,177,177
Nationwide Building Society
8/11/95 6.06 5,000,000 4,991,708
New Center Asset Trust
8/14/95 5.80 7,000,000 6,985,415
9/19/95 5.81 2,000,000 1,984,347
Norwest Financial
9/11/95 6.06 5,000,000 4,966,175
Philip Morris Cos., Inc.
9/5/95 6.07 5,000,000 4,971,076
(c)COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Prospect Street Senior Portfolio LP
8/24/95 6.11% $ 3,540,000 $ 3,526,317
Prudential Funding Corp.
8/9/95 5.99 20,000,000 19,973,511
Sears Roebuck Acceptance Corp.
8/23/95 5.84 4,000,000 3,985,822
9/18/95 5.98 6,000,000 5,952,840
9/18/95 6.00 13,000,000 12,897,560
9/25/95 5.81 10,000,000 9,912,153
Sherwood Medical Company
8/21/95 5.99 5,000,000 4,983,500
Textron, Inc.
8/7/95 6.08 3,000,000 2,996,975
8/7/95 6.19 5,785,000 5,779,070
Toronto Dominion Holdings USA, Inc.
9/11/95 6.11 4,000,000 3,972,758
9/29/95 5.90 10,000,000 9,904,781
Woolwich Equitable Building Society
10/16/95 5.94 5,000,000 4,938,567
TOTAL COMMERCIAL PAPER 545,864,805
(c)FEDERAL AGENCIES - 2.2%
FEDERAL FARM CREDIT BANK - AGENCY COUPONS - 0.5%
8/1/95 5.92 (a) 5,000,000 4,997,639
FEDERAL HOME LOAN BANK - AGENCY COUPONS - 0.2%
9/7/95 6.13 2,000,000 2,016,585
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 1.5%
9/11/95 6.32 10,000,000 9,930,300
10/20/95 6.04 5,000,000 4,934,667
14,864,967
TOTAL FEDERAL AGENCIES 21,879,191
(c)U.S. TREASURY OBLIGATIONS - 0.5%
U.S. TREASURY BILLS
7/25/96 5.76 5,000,000 4,728,756
(c)BANK NOTES - 7.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Bank of America - Illinois
10/19/95 5.76% $ 7,525,000 $ 7,525,000
Boatmen's National Bank of St. Louis
9/22/95 6.01 (a) 5,000,000 4,996,234
Comerica Bank - Detroit
5/28/96 5.83 5,000,000 5,013,395
Fifth Third Bank - Cincinnati
10/27/95 6.07 5,000,000 5,001,461
First National Bank of Boston
8/8/95 6.04 (a) 5,000,000 5,000,269
First National Bank of Chicago
9/28/95 6.15 5,000,000 5,001,162
First of America Bank - Indiana
8/17/95 6.05 (a) 10,000,000 10,003,054
Household Bank, N.A.
9/21/95 5.93 5,000,000 5,000,000
Mellon Bank, N.A.
11/1/95 6.24 5,000,000 5,000,000
NBD Bank, N.A.
10/16/95 6.27 5,000,000 5,000,000
NationsBank of Texas
9/26/95 6.38 5,000,000 5,000,000
10/27/95 6.25 5,000,000 5,000,000
U.S. National Bank of Oregon
8/22/95 6.37 5,000,000 5,000,028
TOTAL BANK NOTES 72,540,603
(c)MASTER NOTES (A) - 1.7%
J.P. Morgan Securities
8/1/95 6.08 9,000,000 9,000,000
Norwest Corp.
8/1/95 5.87 4,000,000 4,000,000
8/1/95 5.89 4,000,000 4,000,000
TOTAL MASTER NOTES 17,000,000
(c)MEDIUM-TERM NOTES (A) - 5.7%
Abbey National Treasury Services
9/30/95 6.00 (c) 10,000,000 10,000,000
Beneficial Corp.
8/15/95 5.84 5,000,000 4,999,660
Dean Witter, Discover & Co.
8/15/95 5.86 5,305,000 5,308,911
8/16/95 5.84 5,000,000 5,004,446
(c)MEDIUM-TERM NOTES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
General Electric Capital Corp.
3/29/96 6.00% $ 5,000,000 $ 4,999,110
General Motors Acceptance Corp.
8/7/95 6.22 6,000,000 6,000,000
Goldman Sachs Group, L.P. (The)
9/1/95 6.00 (c) 6,000,000 6,000,000
9/16/95 5.92 (c) 6,000,000 6,000,000
Norwest Corp.
9/15/95 6.03 7,000,000 7,000,000
TOTAL MEDIUM-TERM NOTES 55,312,127
(c)SHORT-TERM NOTES (A) (B) - 2.6%
SMM Trust Company (1994-D)
10/27/95 5.96 1,000,000 1,000,000
SMM Trust Company (1995-I)
8/9/95 5.92 8,000,000 7,998,078
SMM Trust Company (1995-J)
8/15/95 5.88 16,000,000 16,000,000
TOTAL SHORT-TERM NOTES 24,998,078
(c)MUNICIPAL SECURITIES (A) - 0.1%
New Orleans Aviation Board (MBIA Insured)
8/7/95 6.02 900,000 900,000
(c)REPURCHASE AGREEMENTS - 0.6%
MATURITY
AMOUNT
In a joint trading account
(U.S. Treasury Obligations)
dated 7/31/95 due 8/1/95:
At 5.85% $ 5,944,966 5,944,000
TOTAL INVESTMENTS - 100% $ 978,707,079
Total Cost for Income Tax Purposes $ 978,707,079
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.
(b) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
SMM Trust Company:
(1994-D) 10/28/94 $ 1,000,000
(1995-I) 5/25/95 $ 7,997,684
(1995-J) 5/16/95 $ 16,000,000
(c) 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 $22,000,000 or 2.3% of net
assets.
INCOME TAX INFORMATION
At July 31, 1995, the fund had a capital loss carryforward of approximately
$131,000 which will expire on July 31, 2002.
For the period ended July 31, 1995, approximately 1% of the fund's
dividends to shareholders was derived from interest on U.S. Government
obligations.
CAPITAL RESERVES: MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995
1.ASSETS 2. 3.
4.Investment in securities, at value (including repurchase agreements of $5,944,000) - 5. $ 978,707,079
See accompanying schedule
6.Cash 7. 2,716,264
8.Receivable for investments sold 9. 600,000
10.Interest receivable 11. 4,008,553
12.Receivable from investment adviser for expense reductions 13. 167,533
14. 15.TOTAL ASSETS 16. 986,199,429
17.LIABILITIES 18. 19.
20.Payable for investments purchased $ 9,000,127 21.
22.Distributions payable 189,469 23.
24.Accrued management fee 401,204 25.
26.Other payables and accrued expenses 633,843 27.
28. 29.TOTAL LIABILITIES 30. 10,224,643
31.32.NET ASSETS 33. $ 975,974,786
34.Net Assets consist of: 35. 36.
37.Paid in capital 38. $ 976,093,475
39.Accumulated net realized gain (loss) on investments 40. (118,689)
41.42.NET ASSETS, for 976,093,475 shares outstanding 43. $ 975,974,786
44.45.NET ASSET VALUE, offering price and redemption price per share 46. $1.00
($975,974,786 (divided by) 976,093,475 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JULY 31, 1995
47.48.INTEREST INCOME 49. $ 44,173,230
50.EXPENSES 51. 52.
53.Management fee $ 3,817,736 54.
55.Transfer agent fees 1,832,726 56.
57.Distribution fees 2,672,415 58.
59.Accounting fees and expenses 107,425 60.
61.Non-interested trustees' compensation 10,044 62.
63.Custodian fees and expenses 52,457 64.
65.Registration fees 279,379 66.
67.Audit 32,568 68.
69.Legal 8,319 70.
71.Miscellaneous 6,441 72.
73. Total expenses before reductions 8,819,510 74.
75. Expense reductions (1,260,394) 7,559,116
76.77.NET INTEREST INCOME 78. 36,614,114
79.80.NET REALIZED GAIN (LOSS) ON INVESTMENTS 81. 25,923
82.83.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 84. $ 36,640,037
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JULY 31,
1995 1994
85.INCREASE (DECREASE) IN NET ASSETS
86.Operations $ 36,614,114 $ 17,953,417
Net interest income
87. Net realized gain (loss) 25,923 (148,964)
88. 89.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 36,640,037 17,804,453
90.Distributions to shareholders from net interest income (36,614,114) (17,953,417)
91.Share transactions at net asset value of $1.00 per share 4,573,488,050 3,974,385,280
Proceeds from sales of shares
92. Reinvestment of distributions from net interest income 33,809,364 16,240,483
93. Cost of shares redeemed (4,311,497,330) (3,911,825,770)
94.95. 295,800,084 78,799,993
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
96. 97.TOTAL INCREASE (DECREASE) IN NET ASSETS 295,826,007 78,651,029
98.NET ASSETS 99. 100.
101. Beginning of period 680,148,779 601,497,750
102. End of period $ 975,974,786 $ 680,148,779
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
103. YEARS ENDED JULY 31, OCTOBER 23, 1990
(COMMENCEMENT
OF OPERATIONS) TO
JULY 31,
104. 1995 1994 1993 1992 1991
105.SELECTED PER-SHARE DATA
106.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
107.Income from Investment Operations .048 .027 .025 .041 .047
Net interest income
108.Less Distributions (.048) (.027) (.025) (.041) (.047)
From net interest income
109.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
110.TOTAL RETURN B, C 4.86% 2.72% 2.57% 4.13% 4.79%
111.RATIOS AND SUPPLEMENTAL DATA
112.Net assets, end of period (000
omitted) $ 975,975 $ 680,149 $ 601,498 $ 354,189 $ 108,991
113.Ratio of expenses to average net
assets .99% .98% .95% .82% .83%
A
114.Ratio of expenses to average net
assets before 1.16% 1.12% 1.14% 1.17% 1.25%
expense reductions A
115.Ratio of net interest income to
average net assets 4.80% 2.70% 2.52% 3.81% 5.71%
A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO
INVESTMENTS JULY 31, 1995
Showing Percentage of Total Value of Investments
(c)U.S. TREASURY OBLIGATIONS - 16.7%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS - 3.9%
8/10/95 6.29% $ 2,000,000 $ 1,996,950
8/31/95 6.19 6,000,000 5,970,000
7,966,950
U.S. TREASURY NOTES - 12.8%
1/31/96 5.71 5,000,000 4,954,403
2/15/96 5.49 1,000,000 994,466
2/15/96 6.18 3,000,000 2,973,436
2/15/96 6.21 5,000,000 4,955,733
2/29/96 5.60 5,000,000 4,967,480
4/15/96 5.51 2,000,000 2,049,456
4/30/96 5.65 5,000,000 4,988,915
25,883,889
TOTAL U.S. TREASURY OBLIGATIONS 33,850,839
(c)REPURCHASE AGREEMENTS - 83.3%
MATURITY
AMOUNT
With First Boston Corporation:
dated 4/28/95 due 8/25/95:
U.S. Treasury Obligations
(principal amount $13,437,000)
At 5.85% (a)
11.625%, 11/15/04 $ 18,348,075 (b)$ 18,000,000
With Merrill Lynch Government Securities, Inc.:
dated 5/19/95 due 9/29/95:
U.S. Treasury Obligations
(principal amount $2,695,000)
At 5.8375% (a),
8.125%, 8/15/19 3,064,699 (b) 3,000,000
In a joint trading account
(U.S. Treasury Obligations)
dated 7/31/95 due 8/1/95
(Notes 2 and 3)
At 5.82% 123,019,892 123,000,000
At 5.83% 25,129,071 25,125,000
TOTAL REPURCHASE AGREEMENTS 169,125,000
TOTAL INVESTMENTS - 100% $ 202,975,839
Total Cost for Income Tax Purposes $ 202,975,839
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.
(b) For financial statement purposes, the maturity amount is calculated
based on the rate at period end.
INCOME TAX INFORMATION
At July 31, 1995, the fund had a capital loss carryforward of approximately
$56,000 of which $6,000, $35,000 and $15,000 will expire on July 31, 2001,
2002 and 2003, respectively.
For the period ended July 31, 1995, approximately 27% of the fund's
dividends to shareholders was derived from interest on U.S. Government
obligations.
CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995
116.ASSETS 117. 118.
119.Investment in securities, at value (including repurchase agreements of $169,125,000) - 120. $ 202,975,839
See accompanying schedule
121.Interest receivable 122. 760,854
123.Receivable from investment adviser for expense reductions 124. 26,318
125. 126.TOTAL ASSETS 127. 203,763,011
128.LIABILITIES 129. 130.
131.Share transactions in process $ 1,525,556 132.
133.Distributions payable 58,682 134.
135.Accrued management fee 84,705 136.
137.Other payables and accrued expenses 129,061 138.
139. 140.TOTAL LIABILITIES 141. 1,798,004
142.143.NET ASSETS 144. $ 201,965,007
145.Net Assets consist of: 146. 147.
148.Paid in capital 149. $ 202,018,559
150.Accumulated net realized gain (loss) on investments 151. (53,552)
152.153.NET ASSETS, for 202,018,559 shares outstanding 154. $ 201,965,007
155.156.NET ASSET VALUE, offering price and redemption price per share 157. $1.00
($201,965,007 (divided by) 202,018,559 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JULY 31, 1995
158.159.INTEREST INCOME 160. $ 13,984,615
161.EXPENSES 162. 163.
164.Management fee $ 1,295,663 165.
166.Transfer agent fees 376,308 167.
168.Distribution fees 906,961 169.
170.Accounting fees and expenses 45,446 171.
172.Non-interested trustees' compensation 4,866 173.
174.Custodian fees and expenses 27,848 175.
176.Registration fees 160,510 177.
178.Audit 22,400 179.
180.Legal 3,841 181.
182.Miscellaneous 2,865 183.
184. Total expenses before reductions 2,846,708 185.
186. Expense reductions (281,298) 2,565,410
187.188.NET INTEREST INCOME 189. 11,419,205
190.191.NET REALIZED GAIN (LOSS) ON INVESTMENTS 192. (15,092)
193.194.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 195. $ 11,404,113
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JULY 31,
1995 1994
196.INCREASE (DECREASE) IN NET ASSETS
197.Operations $ 11,419,205 $ 7,851,980
Net interest income
198. Net realized gain (loss) (15,092) (34,704)
199. 11,404,113 7,817,276
200.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
201.Distributions to shareholders from net interest income (11,419,205) (7,851,980)
202.Share transactions at net asset value of $1.00 per share 2,024,521,368 2,416,632,169
Proceeds from sales of shares
203. Reinvestment of distributions from net interest income 9,304,614 6,256,268
204. Cost of shares redeemed (2,138,106,584) (2,381,075,779)
205.206. (104,280,602) 41,812,658
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
207. (104,295,694) 41,777,954
208.TOTAL INCREASE (DECREASE) IN NET ASSETS
209.NET ASSETS 210. 211.
212. Beginning of period 306,260,701 264,482,747
213. End of period $ 201,965,007 $ 306,260,701
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
214. YEARS ENDED JULY 31, OCTOBER 23, 1990
(COMMENCEMENT
OF OPERATIONS) TO
JULY 31,
215. 1995 1994 1993 1992 1991
216.SELECTED PER-SHARE DATA
217.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
218.Income from Investment Operations .045 .025 .024 .041 .046
Net interest income
219.Less Distributions (.045) (.025) (.024) (.041) (.046)
From net interest income
220.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
221.TOTAL RETURN B, C 4.64% 2.52% 2.40% 4.15% 4.66%
222.RATIOS AND SUPPLEMENTAL DATA
223.Net assets, end of period (000 omitted) $ 201,965 $ 306,261 $ 264,483 $ 308,542 $ 80,762
224.Ratio of expenses to average net assets .99% .98% .95% .65% .70%
A
225.Ratio of expenses to average net assets
before 1.10% 1.03% 1.07% 1.14% 1.27%
expense reductions A
226.Ratio of net interest income to
average net assets 4.41% 2.50% 2.39% 3.82% 5.65%
A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENTS JULY 31, 1995
Showing Percentage of Total Value of Investments
(c)MUNICIPAL SECURITIES (A) - 100%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
ALABAMA - 4.2%
Phoenix City Environmental Improvement Rev. Bonds (Mead Coated Board Proj.)
Series 1988, 3.80%, tender 10/16/95, LOC ABN-Amro Bank (b) $ 3,000,000 $
3,000,000
Roanoke Ind. Dev. Ind. Dev. Rev. (Wehadkee/Rock Mills Proj.) Series 1992,
4%,
LOC Trust Company Bank, VRDN (b) 1,400,000 1,400,000
Talladega Ind. Poll. Cont. Dev. (Wehadkee Yarn Mills Proj.) Series 1990,
4%,
LOC Trust Company Bank of Georgia, VRDN (b) 750,000 750,000
5,150,000
ARIZONA - 6.1%
Arizona Ed. Loan Mktg. Corp. Series 1991 A, 3.90%, LOC Dresdner Bank,
VRDN (b) 1,000,000 1,000,000
Coconino County Poll. Cont. Corp. Poll. Cont. Rev. (Arizona Pub. Svc. Co. -
Navajo Proj.)
Series 1994 A, 4.05%, LOC Bank of America, VRDN (b) 400,000 400,000
Mojave County Ind. Dev. Auth. Ind. Dev. Rev. (Citizen Utils. Co.) Series
1993 E, 4.25%,
tender 9/8/95 (b) 1,360,000 1,360,000
Phoenix Civic Improvement Corp. Airport Rev. Series 1995, 3.95%,
LOC Landesbank Hessen, VRDN (b) 1,000,000 1,000,000
Pinal County Ind. Dev. Auth. Ind. Dev. Rev. (Sunbelt Refining Co. LP Proj.)
Series 1988, 3.90%,
LOC Bankers Trust Co., VRDN (b) 700,000 700,000
Yavapai County Ind. Dev. Auth. Ind. Dev. Rev. Bonds (Citizens Utils. Co.)
Series 1993, 4.25%, tender 9/12/95 (b) 3,000,000 3,000,000
7,460,000
CALIFORNIA -11.3%
Alameda County TRAN 4.75% 7/25/96, LOC Union Bank of Switzerland
1,000,000 1,007,062
California Higher Ed. Loan Auth. Rev. Bonds Series E-5, 4.25%, tender
6/1/96,
LOC SLMA (b) 700,000 700,000
California Higher Ed. Student Loan Auth. Rev. Bonds, Series 1987 C, 4.10%,
tender 6/1/96,
LOC SLMA (b) 1,500,000 1,500,000
California Student Ed. Loan Mktg. Corp. Student Loan Rev. Bonds Series 1994
A, 4.35%,
tender 7/25/96, LOC Dresdner Bank (b) 500,000 500,000
California TRAN (Cash Reserve Prog. Auth.) Series 1995 A, 4.75% 7/3/96,
LOC Industrial Bank of Japan 3,000,000 3,026,608
Los Angeles TRAN 4.50% 7/1/96, LOC Credit Suisse 4,500,000 4,527,748
Orange County Apt. Dev. Rev. (WLCO Partners) Series 1985 C-3,
4.50%, LOC Tokai Bank, VRDN 1,500,000 1,500,000
San Bernardino County TRAN 4.50% 7/5/96, LOC Bank of Nova Scotia
1,000,000 1,004,899
13,766,317
COLORADO - 2.0%
Fort Collins County Ind. Dev. Rev. (Phelps -Tointon Millwork Proj.) Series
1993, 4.10%,
LOC Bank One, Milwaukee, VRDN (b) 1,450,000 1,450,000
Wheat Ridge County Ind. Dev. Rev. (Adolph Coors Co. Proj.) Series 1993, 4%,
LOC Wachovia Bank Georgia, VRDN (b) 1,000,000 1,000,000
2,450,000
(c)MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
CONNECTICUT - 0.8%
Connecticut Hsg. Fin. Auth Hsg. Mtg. Bonds Series 1993 H-2, 3.75%,
tender 4/15/96 (b) $ 1,000,000 $ 1,000,000
FLORIDA - 6.9%
Broward County Ind. Dev. Auth. Rev. Rfdg. (Goldline Lab., Inc. Proj.)
Series 1989 B, 3.95%,
LOC Barnett Bank, VRDN (b) 247,000 247,000
Dade County Hsg. Fin. Corp. Participating VRDN,
Series 1991 A, 4.30%, (Liquidity Facility Bank One) (b) (c) 1,350,000
1,350,000
Dade County Ind. Dev. Rev. (Montenay-Dade Proj.) VRDN (b):
Series 1988, 4.05%, LOC Banque Paribas 1,455,000 1,455,000
Series 1990 A, 4.05%, LOC Banque Paribas 3,000,000 3,000,000
Dade County Multi-Family Hsg. Rev. (Biscayne View Apts. Proj.) Series 1993,
4.15%
(BPA Commonwealth Life Ins. Co.) VRDN (b) 1,475,000 1,475,000
Okeechobee County Solid Waste Rev. (Chambers Waste Sys.) Series 1992,
4.10%,
LOC NationsBank, VRDN (b) 900,000 900,000
8,427,000
GEORGIA - 1.2%
Floyd County Dev. Auth. Ind. Dev. Rev. (Marglen Ind. Inc. Proj.) 4%,
LOC Trust Company Bank of Georgia, VRDN (b) 800,000 800,000
Pierce County Ind. Dev. & Bldg. Auth. Rev. (American Egg Prods. Inc. Proj.)
Series 1989, 4%, LOC Trust Company Bank of Georgia, VRDN (b) 170,000
170,000
Rockdale County Ind. Dev. Rev. (Takahashi Works USA) Series 1990, 4%,
LOC Sanwa Bank, VRDN (b) 500,000 500,000
1,470,000
ILLINOIS - 1.8%
Chicago O'Hare Int'l. Arpt. Rev. (Northwest Orient Airlines) 4%,
LOC Mitsubishi Bank, VRDN (b) 300,000 300,000
Illinois Dev. Fin. Auth. Ind. Dev. Rev., VRDN (b):
(Kindlon Partners Proj.) 4.05%, LOC Lasalle Nat'l. Bank 900,000 900,000
(MTI Corp. Proj.) Series 1989, 4.125%, LOC Industrial Bank of Japan
1,000,000 1,000,000
2,200,000
INDIANA - 0.8%
Indiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds Series 1994 C, 4%,
tender 7/1/96 (FGIC Insured) (b) 500,000 500,000
Shelbyville Ind. Econ. Dev. Rev. (Nippisun Indiana Corp. Proj.) 4.10%,
LOC Industrial Bank of Japan, VRDN (b) 500,000 500,000
1,000,000
IOWA - 0.3%
Iowa Fin. Auth. Solid Waste Disp. Rev. (Cedar River Paper Co.) Series 1994
A, 3.90%
LOC Swiss Bank, VRDN (b) 400,000 400,000
KENTUCKY - 0.8%
Cynthiana Ind. Dev. Rev. (E.D. Bullard Co. Proj.) 4.10%, LOC NationsBank of
North Carolina,
VRDN (b) 1,000,000 1,000,000
(c)MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
LOUISIANA - 3.5%
Calcasie Parish Pub. Trust Auth. Solid Waste Disp. Rev. (PPG Industries
Inc. Proj.)
Series 1994, 4%, VRDN (b) $ 1,000,000 $ 1,000,000
Lake Charles Harbor and Terminal Dist. Port Impt. Rev., 3.94%,
LOC Nat'l. Westminster Bank, VRDN (b) 2,000,000 2,000,000
Plaquemines Parish Environmental Rev. (BP Exploration & Oil, Inc.) Series
1994, 4.05%,
VRDN (b) 1,300,000 1,300,000
4,300,000
MAINE - 0.5%
Maine Fin. Auth. Econ. Dev. Rev. Series 1992, 4%, LOC Sumitomo Bank, VRDN
(b) 580,000 580,000
MARYLAND - 0.8%
Maryland Commty. Dev. Administration Dept. of Hsg. & Commty. Dev. Single
Family Mtg.
Participating VRDN, Series PT-36, 4% (Liquidity Facility Industrial Bank of
Japan) (b) (c) 980,000 980,000
MICHIGAN - 3.9%
Michigan Hsg. Dev. Auth. Participating VRDN, Series PT-58, 4.10%
(Liquidity Facility Credit Suisse) (b) (c) 1,000,000 1,000,000
Michigan RAN Series 1995 B, 4.50% 7/3/96 2,500,000 2,515,515
Michigan Strategic Fund Ltd. Oblig. Rev. (Ultimate Hydroforming Inc. Proj.)
3.70%,
LOC National Bank of Detroit, VRDN (b) 1,200,000 1,200,000
4,715,515
MISSOURI - 1.6%
Missouri Higher Ed. Loan Student Loan Auth. Rev., Series 1990 B, 3.90%,
LOC Nat'l. Westminster Bank, VRDN (b) 1,000,000 1,000,000
University of Missouri RAN Series 1995-96, 4.75% 6/28/96 1,000,000
1,009,206
2,009,206
NEVADA - 5.8%
Clark County Poll. Cont. Rev. Bonds (Southern California Edison Co.) (b):
Series 1987 A:
4.20%, tender 8/7/95 1,810,000 1,810,000
4.15%, tender 8/14/95 1,500,000 1,500,000
Washoe County Gas. Fac. Rev. Bonds (Sierra Pacific Pwr. Co.) (b):
Series 1990:
3.60%, tender 8/21/95, LOC Union Bank of Switzerland 1,800,000
1,800,000
3.75%, tender 9/18/95, LOC Union Bank of Switzerland 2,000,000
2,000,000
7,110,000
NORTH CAROLINA - 0.7%
Piedmont Triad Arpt. Auth. Spl. Facs. Rev. (Triad Int'l. Maintenance Corp.
Proj.)
Series 1989, 4.05%, LOC Mellon Bank, VRDN (b) 900,000 900,000
OKLAHOMA - 2.8%
Guymon Utils. Auth. Rev. (Seaboard Proj.) Series 1995, 4%,
LOC Trust Company Bank of Georgia, VRDN (b) 3,300,000 3,300,000
(c)MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
OREGON - 0.8%
Portland Econ. Dev. Rev. (Columbia Aluminum Recycling) 4.15%,
LOC U.S. Bank of Oregon, VRDN (b) $ 1,000,000 $ 1,000,000
PENNSYLVANIA - 8.3%
Bucks County Ind. Dev. Auth. Ind. Dev., VRDN (b):
(Associates Proj.) Series 1993, 4.40%, LOC Meridian Bank 1,510,000
1,510,000
(Double H Plastics Inc. Proj.) Series 1993, 4.40%, LOC Meridian Bank
2,445,000 2,445,000
Carbon County Ind. Dev. Auth. Resource Recovery Bonds (Panther Creek
Partners Proj.)
3.70%, tender 8/17/95, LOC National Westminster Bank (b) 1,060,000
1,060,000
Northumberland County Ind. Dev. Resource Recovery (Foster Wheeler Mt.
Carmel Inc.)
Series 1987 B, 4%, LOC Union Bank of Switzerland, VRDN (b) 200,000
200,000
Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN (b):
(ASK Foods, Inc.) Series A-1, 4.05%, LOC PNC Bank 485,000 485,000
(Port Erie Plastics Proj.) Series 1989 D-9, 4.05%, LOC PNC Bank 80,000
80,000
Philadelphia School Dist. TRAN, Series 1995-96, 4.50% 6/28/96 1,000,000
1,004,810
Venango Ind. Dev. Auth. Resource Recovery Rev. Bonds (b):
(Scrubgrass Proj.) Series 1990:
3.60%, tender 8/21/95, LOC Nat'l. Westminster Bank 1,115,000 1,115,000
4.25%, tender 9/7/95, LOC Nat'l. Westminister Bank 1,300,000 1,300,000
3.80%, tender 10/27/95, LOC Nat'l. Westminster Bank 900,000 900,000
10,099,810
RHODE ISLAND - 3.2%
Providence Pub. Parking (Washington Street Garage Proj.) Series 1991,
3.95%,
LOC Credit Suisse, VRDN (b) 2,050,000 2,050,000
Rhode Island Hsg. & Mtg. Fin. Corp. Homeownership Opportunities Bonds
Series 17C,
4.40%, tender 2/1/96 (b) 750,000 750,000
Rhode Island Ind. Facs. Corp. Ind. Rev. (NFA Corp Proj.) 4%, LOC Bank of
Boston,
VRDN (b) 1,100,000 1,100,000
3,900,000
TENNESSEE - 6.2%
Cookeville Ind. Dev. Board Ind. Dev. Rev. (Delbar Products Inc. Proj.)
4.05%,
LOC PNC Bank, VRDN (b) 1,200,000 1,200,000
Memphis-Shelby County Airport Auth., 4.20% 8/18/95,
LOC Canadian Imperial Bank, CP (b) 1,000,000 1,000,000
Morristown Ind. Dev., VRDN (b):
(Lakeway Container Inc. Proj.) Series 1993, 3.75%, LOC First Tennessee
Bank 2,300,000 2,300,000
(Tuff Torq Corp. Proj.) Series 1989, 3.75%, LOC Bank of Tokyo 1,450,000
1,450,000
Tennessee Hsg. Dev. Agcy. Participating VRDN, Series PT-59B, 4.05%
(Liquidity Facility Credit Suisse) (b) (c) 1,000,000 1,000,000
Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990, 4%,
LOC Trust Company Bank of Georgia, VRDN (b) 685,000 685,000
7,635,000
(c)MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
TEXAS - 7.9%
Brazos River Harbor Navigation Dist. of Brazoria County Rev. Bonds (b):
(Dow Chemical Proj.):
Series 1988:
3.60%, tender 10/10/95 $ 1,000,000 $ 1,000,000
3.85%, tender 10/23/95 2,230,000 2,230,000
Series 1992, 4.15%, tender 8/14/95 1,000,000 1,000,000
Greater East Texas Higher Ed. Auth. Student Loan Rev., Series 1988 A, 4%,
(AMBAC Insured) (BPA Citibank) VRDN (b) 1,000,000 1,000,000
Gulf Coast Waste Disp. Auth. (Amoco Oil Co. Proj.) 4%, VRDN (b) 1,100,000
1,100,000
North Texas Higher Ed. Auth. Student Loan Rev. Series 1993 A, 3.90%,
LOC SLMA,VRDN (b) 800,000 800,000
Texas Gen. Oblig. TRAN Series 1994, 5% 8/31/95 2,000,000 2,000,414
Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev. (Primecrest Ltd.
Proj.) VRDN (b):
Series 1990 A, 3.95%, LOC ABN AMRO Bank 300,000 300,000
Series 1990 B, 3.95%, LOC ABN AMRO Bank 200,000 200,000
9,630,414
UTAH - 0.9%
Castle Dale Ind. Dev. Rev. Rfdg. Bonds (Safeway Inc. Proj.) Series 1992,
4.90%,
tender 8/1/95, LOC Bankers Trust Co. 1,150,000 1,150,000
VIRGINIA - 2.6%
Mecklenburg County Ind. Auth. (American Bldgs. Co. Proj.) 4.15%,
LOC Lasalle Nat'l. Bank, VRDN (b) 1,700,000 1,700,000
Virginia Hsg. Dev. Auth. Participating VRDN, Series PA-80B, 4%
(Liquidity Facility Merrill Lynch) (b) (c) 1,480,000 1,480,000
3,180,000
WASHINGTON - 7.6%
Algona Econ. Dev. Corp. Ind. Rev. (Aitchison Family Partnership) Series
1992, 4.05%,
LOC Wells Fargo Bank, VRDN (b) 2,710,000 2,710,000
Port Angeles Ind. Dev. Corp. (Daishowa America Proj.) Series 1991, 4.30%,
LOC Industrial Bank of Japan, VRDN (b) 200,000 200,000
Port of Grays Harbor Solid Waste Fac. Rev. (Pacific Veneer, Weyerhaeuser
Co.)
Series 1993, 4.05%, VRDN (b) 2,500,000 2,500,000
Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev. (Weyerhaeuser Co.
Proj.)
Series 1993, 4.05%, VRDN 2,000,000 2,000,000
Washington Commty. Econ. Revitalization Rev. (Sanken USA) Series 1988-1,
4.15%,
LOC Industrial Bank of Japan, VRDN (b) 1,540,000 1,540,000
Washington Hsg. Fin. Comm. Bonds, 4.10%, tender 6/1/96 (FGIC Insured) (b)
400,000 400,000
9,350,000
WEST VIRGINIA - 3.2%
Marion County Solid Waste Disp. Rev. (Grant Town Cogeneration Proj.)
Series 1990 C, 3.95%, LOC Nat'l. Westminster Bank, VRDN (b) 1,000,000
1,000,000
West Virginia Pub. Energy Auth. Energy Rev. Bonds (Morgantown Energy
Assoc.) 3.40%,
tender 9/7/95, LOC Swiss Bank (b) 1,400,000 1,400,000
Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.) Series 1988, 4.05%,
LOC Svenska Handelsbanken, VRDN (b) 1,500,000 1,500,000
3,900,000
(c)MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
WISCONSIN - 2.3%
Appleton Ind. Dev. Rev. (Pensar Corp. Proj.) Series 1993, 4.10%
LOC Bank One, Milwaukee, VRDN (b) $ 1,080,000 $ 1,080,000
Racine Ind. Dev. Rev. (Burlington Graphic Sys.) Series 1994, 4.10%,
LOC Bank One, Milwaukee, VRDN (b) 1,780,000 1,780,000
2,860,000
WYOMING - 1.2%
Sweetwater County Env. Improvement Rev. Bonds (Pacific Proj.) Series 1990
A, 3.85%,
tender 8/14/95, LOC Nat'l. Westminster Bank 1,400,000 1,400,000
TOTAL INVESTMENTS - 100% $ 122,323,262
Total Cost for Income Tax Purposes $ 122,323,262
SECURITY TYPE ABBREVIATIONS
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At July 31, 1995, the fund had a capital loss carryforward of approximately
$10,000 of which $3,000, $2,000 and $5,000 will expire on July 31, 2000,
2001 and 2002, respectively.
CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995
227.ASSETS 228. 229.
230.Investment in securities, at value - See accompanying schedule 231. $ 122,323,262
232.Cash 233. 134,066
234.Receivable for investments sold 235. 900,681
236.Interest receivable 237. 650,698
238.Receivable from investment adviser for expense reductions 239. 4,746
240. 241.TOTAL ASSETS 242. 124,013,453
243.LIABILITIES 244. 245.
246.Share transactions in process $ 29,955 247.
248.Distributions payable 6,952 249.
250.Accrued management fee 52,578 251.
252.Other payables and accrued expenses 104,638 253.
254. 255.TOTAL LIABILITIES 256. 194,123
257.258.NET ASSETS 259. $ 123,819,330
260.Net Assets consist of: 261. 262.
263.Paid in capital 264. $ 123,829,350
265.Accumulated net realized gain (loss) on investments 266. (10,020)
267.268.NET ASSETS, for 123,829,350 shares outstanding 269. $ 123,819,330
270.271.NET ASSET VALUE, offering price and redemption price per share 272. $1.00
($123,819,330 (divided by) 123,829,350 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JULY 31, 1995
273.274.INTEREST INCOME 275. $ 4,638,314
276.EXPENSES 277. 278.
279.Management fee $ 597,379 280.
281.Transfer agent, accounting and custodian fees and expenses 202,837 282.
283.Distribution fees 418,166 284.
285.Non-interested trustees' compensation 1,259 286.
287.Registration fees 142,525 288.
289.Audit 16,817 290.
291.Legal 5,012 292.
293.Miscellaneous 106 294.
295. Total expenses before reductions 1,384,101 296.
297. Expense reductions (201,292) 1,182,809
298.299.NET INTEREST INCOME 300. 3,455,505
301.302.NET REALIZED GAIN (LOSS) ON INVESTMENTS 303. 2,903
304.305.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 306. $ 3,458,408
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JULY 31,
1995 1994
307.INCREASE (DECREASE) IN NET ASSETS
308.Operations $ 3,455,505 $ 2,358,367
Net interest income
309. Net realized gain (loss) 2,903 (4,997)
310. 3,458,408 2,353,370
311.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
312.Distributions to shareholders from net interest income (3,455,505) (2,358,367)
313.Share transactions at net asset value of $1.00 per share 442,429,728 502,816,505
Proceeds from sales of shares
314. Reinvestment of distributions from net interest income 3,324,065 2,273,420
315. Cost of shares redeemed (438,434,489) (504,861,716)
316.317. 7,319,304 228,209
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
318. 7,322,207 223,212
319.TOTAL INCREASE (DECREASE) IN NET ASSETS
320.NET ASSETS 321. 322.
323. Beginning of period 116,497,123 116,273,911
324. End of period $ 123,819,330 $ 116,497,123
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
325. YEARS ENDED JULY 31, NOVEMBER 29, 1990
(COMMENCEMENT
OF OPERATIONS) TO
JULY 31,
326. 1995 1994 1993 1992 1991
327.SELECTED PER-SHARE DATA
328.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
329.Income from Investment Operations .029 .018 .019 .031 .028
Net interest income
330.Less Distributions (.029) (.018) (.019) (.031) (.028)
From net interest income
331.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
332.TOTAL RETURN B, C 2.94% 1.80% 1.96% 3.14% 2.82%
333.RATIOS AND SUPPLEMENTAL DATA
334.Net assets, end of period (000 omitted)$ 123,819 $ 116,497 $ 116,274 $ 68,497 $ 19,578
335.Ratio of expenses to average net assets .99% .98% .95% .95% .95%A
336.Ratio of expenses to average net assets
before 1.16% 1.04% 1.23% 1.40% 2.63%A
expense reductions
337.Ratio of net interest income to
average net assets 2.89% 1.78% 1.92% 2.89% 3.97%A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES.
Capital Reserves: Money Market Portfolio, U.S. Government Portfolio and
Municipal Money Market Portfolio (the funds) are funds of Daily Money
Fund(the trust). 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. Each fund is authorized to
issue an unlimited number of shares. The following summarizes the
significant accounting policies of the funds:
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, each fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
the fiscal year. The schedules of investments include 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. For the
Municipal Money Market fund, accretion of market discount represents
unrealized gain until realized at the time of a security disposition or
maturity.
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. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, 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 that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. The funds' investment adviser, FMR, 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.
RESTRICTED SECURITIES. The Money Market and Municipal Money Market funds
are 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 $24,998,078 or 2.6% of net assets for
the
Money Market fund.
3. JOINT TRADING ACCOUNT.
At the end of the period, the U.S. Government 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 maturity
3. JOINT TRADING ACCOUNT - CONTINUED
values of the joint trading account investments having variable rates are
calculated based on the rate at period end. The maturity values of the
joint trading account investments were $123,019,892 at 5.82% and
$25,129,071 at 5.83% . The investments in repurchase agreements through the
joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
DATED JULY 31, 1995, DUE AUGUST 1, 1995 AT 5.82%
Number of dealers or banks 13
Maximum amount with one dealer or bank 33.7%
Aggregate principal amount of agreements $4,742,000,000
Aggregate maturity amount of agreements $4,742,766,902
Aggregate market value of collateral $4,842,463,694
Coupon rates of collateral 0% to 14.25%
Maturity dates of collateral 8/10/95 to 2/15/25
DATED JULY 31, 1995, DUE AUGUST 1, 1995 AT 5.83%
Number of dealers or banks 5
Maximum amount with one dealer or bank 34.5%
Aggregate principal amount of agreements $580,000,000
Aggregate maturity amount of agreements $580,093,981
Aggregate market value of collateral $592,014,958
Coupon rates of collateral 0% to 14.25%
Maturity dates of collateral 8/10/95 to 2/15/25
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a fee that
is computed daily at an annual rate of .50% of the fund's average net
assets.
SUB-ADVISER FEE. As each 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 fees are paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to each fund's Distribution and Service
Plan.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, each
fund is authorized to pay its distributor, National Financial Services
Corporation (the Distributor), an affiliate of FMR, a monthly distribution
fee at an annual rate of .35% of its average net assets. The Distributor
may pay all or a portion of the fee to securities dealers or banks
(Qualified Recipients) that have selling agreements with each fund. In
addition, FMR may use its resources to pay Qualified Recipients who provide
shareholder support or distribution services at a maximum annual rate of up
to .25% of each fund's average net assets. Qualified Recipients, including
the Distributor acting in the capacity of a Qualified Recipient, may at
their discretion, retain any portion of their compensation and reallocate
the balance to their correspondents. For the period, FMR made payments
under the Plans in the amount of $1,895,583, $607,170 and $304,074 for the
Money Market, U.S. Government and
4. FEES AND OTHER TRANSACTIONS WITH
AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
Municipal Money Market funds, respectively. Of the fees paid by the funds
and FMR for the period, the Distributor has reallocated to third parties
$3,743,100, $1,401,924 and $575,257 for the Money Market, U.S. Government
and Municipal Money Market funds, respectively.
TRANSFER AGENT AND ACCOUNTING FEES. Fidelity Investments Institutional
Operations Company (FIIOC), an affiliate of FMR, is the transfer, dividend
disbursing and shareholder servicing agent for the Money Market and U.S.
Government funds. UMB Bank n.a. (UMB) is the custodian and transfer and
shareholder servicing agent for the Municipal Money Market fund. UMB has
entered into a sub-contract with FIIOC to perform the activities associated
with the Municipal Money Market fund's transfer and shareholder servicing
agent functions. During the period August 1, 1994 to December 31, 1994,
FIIOC received fees based on the type, size, number of accounts and the
number of transactions made by shareholders. Effective January 1, 1995, the
Board of Trustees approved a revised transfer agent contract pursuant to
which FIIOC receives account fees and asset-based fees that vary according
to account size and type of account. FIIOC pays for typesetting, printing
and mailing of all shareholder reports, except proxy statements. For the
period, FIIOC received transfer and shareholder servicing agent fees
amounting to $158,296 for the Municipal Money Market fund.
Fidelity Service Co. (FSC), an affiliate of FMR, maintains the accounting
records for the Money Market and U.S. Government funds. UMB also has a
sub-contract with FSC to maintain the Municipal Money Market fund's
accounting records. The accounting fee is based on the level of average net
assets for the month plus out-of-pocket expenses. For the period, FSC
received accounting fees amounting to $27,568 for the Municipal Money
Market fund.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .99% of average net assets. For the
period, the reimbursement reduced expenses by $1,260,394, $281,298 and
$201,292 for the Money Market, U.S. Government and Municipal Money Market
funds, respectively.
6. BENEFICIAL INTEREST.
At the end of the period, one shareholder was record owner of 10% or more
of the total outstanding shares of the U.S. Government fund.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Shareholders and Trustees of Daily Money Fund:
Capital Reserves: Money Market Portfolio
Capital Reserves: U.S. Government Portfolio
Capital Reserves: Municipal Money Market Portfolio
We have audited the accompanying statements of assets and liabilities of
Daily Money Fund: Capital Reserves: Money Market Portfolio, Capital
Reserves: U.S. Government Portfolio and Capital Reserves: Municipal Money
Market Portfolio, including the schedules of portfolio investments, as of
July 31, 1995 and the related statements of operations for the year then
ended, the statements of changes in net assets for each of the two years in
the period then ended, and the financial highlights for each of the four
years then ended and for the period October 23, 1990 (Commencement of
Operations) to July 31, 1991 for the Money Market and U.S. Government
Portfolios and November 29, 1990 (Commencement of Operations) to July 31,
1991 for the Municipal Money Market Portfolio. 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 audits to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 1995, by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of the Daily Money Fund: Capital Reserves: Money Market Portfolio, Capital
Reserves: U.S. Government Portfolio and Capital Reserves: Municipal Money
Market Portfolio as of July 31, 1995, the results of their operations for
the year then ended, the changes in their net assets for each of the two
years in the period then ended, and the financial highlights for each of
the four years then ended and for the period October 23, 1990 (Commencement
of Operations) to July 31, 1991 for the Money Market and U.S. Government
Portfolios and November 29, 1990 (Commencement of Operations) to July 31,
1991 for the Municipal Money Market Portfolio, in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
August 24, 1995
Page 30
Strip-in ONLY Page numbers & "Annual Report"
DO NOT STRIP-IN THIS NOTE
Page 31
Strip-in ONLY Page numbers & "Annual Report"
DO NOT STRIP-IN THIS NOTE
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
Leland Barron, VICE PRESIDENT
Fred L. Henning, Jr., VICE PRESIDENT
Burnell Stehman, VICE PRESIDENT
John Todd, VICE PRESIDENT
Deborah F. Watson, VICE PRESIDENT
Sarah H. Zenoble, VICE PRESIDENT
Arthur S. Loring, SECRETARY
Kenneth A. Rathgeber, TREASURER
Thomas D. Maher, ASSISTANT VICE PRESIDENT
Michael D. Conway, ASSISTANT TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
National Financial Services Corporation
Boston, MA
TRANSFER AND
SHAREHOLDER
SERVICING AGENTS
Fidelity Investments Institutional Operations Company
Boston, MA
UMB Bank, n.a.
Kansas City, MO
CUSTODIANS
Morgan Guaranty Trust Company of New York
New York, NY
UMB Bank, n.a. (MUNICIPAL MONEY MARKET PORTFOLIO)
Kansas City, MO
* INDEPENDENT TRUSTEES
(registered trademark)
DAILY MONEY
FUND
ANNUAL REPORT
JULY 31, 1995
CAPR-ANN-0995
3346
CHECK PAGE NUMBERS !!!
CONTENTS
SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
DAILY MONEY FUND:
MONEY MARKET PORTFOLIO 3
U.S. TREASURY PORTFOLIO 10
NOTES TO THE FINANCIAL STATEMENTS 16
REPORTS OF INDEPENDENT ACCOUNTANTS 20
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUNDS 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 RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ
IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
DAILY MONEY FUND: MONEY MARKET PORTFOLIO
INVESTMENTS JULY 31, 1995
Showing Percentage of Total Value of Investments
(c)BANKERS' ACCEPTANCES - 0.2%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.2%
Royal Bank of Canada
8/1/95 6.03% $ 5,000,000 $ 5,000,000
(c)CERTIFICATES OF DEPOSIT - 31.3%
CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.7%
ABN-AMRO Bank
9/11/95 6.00 15,000,000 15,000,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 19.3%
Banque Nationale de Paris
10/31/95 5.75 15,000,000 15,000,747
Bayerische Hypotheken-und Weschel
11/8/95 6.03 5,000,000 5,000,626
11/9/95 6.05 25,000,000 25,001,348
11/2/95 5.75 25,000,000 25,000,637
Bayerische Landesbank Girozentrale
10/23/95 5.75 25,000,000 25,000,000
Bayerische Vereinsbank A.G.
8/15/95 5.75 25,000,000 25,000,000
Canadian Imperial Bank of Commerce
8/16/95 6.04 25,000,000 25,000,000
9/29/95 5.90 15,000,000 15,000,000
10/23/95 5.75 6,000,000 6,000,000
Credit Suisse
8/14/95 5.75 25,000,000 25,000,000
Dai-Ichi Kangyo Bank, Ltd.
8/1/95 6.02 10,000,000 10,000,000
Dresdner Bank, A.G.
9/12/95 5.75 20,000,000 20,000,000
9/14/95 5.75 20,000,000 20,000,000
10/16/95 5.75 5,000,000 5,000,000
Industrial Bank of Japan, Ltd.
8/7/95 6.03 3,000,000 3,000,024
National Westminster Bank, PLC
10/31/95 6.00 25,000,000 25,003,865
Rabobank Nederland, N.V.
11/21/95 5.75 10,000,000 10,000,000
Societe Generale
8/3/95 6.00 25,000,000 25,000,000
8/14/95 6.02 15,000,000 15,000,000
8/21/95 6.00 35,000,000 35,000,000
11/27/95 5.75 5,000,000 5,000,000
Sumitomo Bank, Ltd.
8/7/95 6.01 10,000,000 10,000,000
Swiss Bank Corp.
10/17/95 5.73 35,000,000 35,000,000
(c)CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Westdeutsche Landesbank
10/19/95 5.75% $ 6,000,000 $ 6,000,000
415,007,247
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 0.5%
Bank of America National Trust & Savings Assoc.
9/29/95 5.91 10,000,000 10,000,000
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 10.1%
Abbey National (UK), PLC
10/20/95 5.75 30,000,000 30,001,314
ABN-AMRO Bank
9/27/95 6.26 10,000,000 10,000,789
Bayerische Hypotheken-und Weschel
9/20/95 5.95 15,000,000 14,999,960
National Westminster Bank, PLC
8/8/95 5.95 62,000,000 61,999,071
11/28/95 5.75 15,000,000 15,000,486
Toronto-Dominion Bank
10/10/95 6.02 35,000,000 35,003,251
10/24/95 5.76 5,000,000 5,000,000
Westdeutsche Landesbank
11/1/95 5.75 37,000,000 37,000,848
Westpac Banking Corp.
9/7/95 5.95 10,000,000 9,998,433
219,004,152
PORTLAND BRANCH, EURODOLLAR, FOREIGN BANKS - 0.7%
Bank of Nova Scotia
8/1/95 6.00 15,000,000 15,000,000
TOTAL CERTIFICATES OF DEPOSIT 674,011,399
(c)COMMERCIAL PAPER - 53.1%
ABN-AMRO North America Finance, Inc.
8/10/95 6.26 14,250,000 14,228,269
9/11/95 5.90 25,000,000 24,834,007
Abbey National Treasury Services
8/21/95 6.04 10,000,000 9,966,944
Associates Corp. of North America
8/4/95 5.99 2,000,000 1,999,010
8/4/95 6.03 25,000,000 24,987,625
8/7/95 6.02 5,000,000 4,995,058
11/2/95 6.02 5,000,000 4,924,438
Banc One Corp.
8/31/95 5.96 25,000,000 24,877,083
9/22/95 5.99 10,000,000 9,914,779
(c)COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Bank of Montreal
10/30/95 5.75% $ 10,000,000 $ 9,858,550
Bank of Nova Scotia
8/1/95 5.94 5,000,000 5,000,000
CIESCO, L.P.
8/18/95 5.96 10,000,000 9,972,044
10/12/95 5.75 4,000,000 3,954,640
Caisse Nationale des Telecommunications
8/15/95 6.04 11,470,000 11,443,460
Canadian Wheat Board
8/4/95 6.44 9,450,000 9,445,078
8/16/95 6.40 15,000,000 14,961,250
Citizens Utilities Company
9/8/95 5.94 18,750,000 18,634,219
Commerzbank U.S. Finance, Inc.
8/21/95 6.40 3,100,000 3,089,322
9/12/95 5.97 4,130,000 4,101,668
9/13/95 5.77 45,000,000 44,693,088
9/25/95 5.89 45,000,000 44,601,250
10/10/95 5.82 5,000,000 4,944,486
Commonwealth Bank of Australia
8/21/95 5.76 15,000,000 14,952,250
Dean Witter, Discover & Co.
8/22/95 5.76 17,000,000 16,943,178
Den Danske Corp., Inc.
10/19/95 5.77 8,000,000 7,900,109
Dresdner Bank, A.G.
8/11/95 5.79 25,000,000 24,960,000
du Pont (E.I.) de Nemours & Co.
8/30/95 6.00 25,000,000 24,881,181
9/20/95 5.94 25,000,000 24,797,569
Eiger Capital Corp.
8/9/95 5.98 30,000,000 29,960,333
Exxon Imperial U.S.
8/18/95 6.00 8,780,000 8,755,331
8/21/95 6.00 2,000,000 1,993,389
9/6/95 5.75 38,109,000 37,891,779
9/7/95 5.84 30,000,000 29,822,708
10/19/95 5.75 15,000,000 14,813,363
11/9/95 6.03 12,135,000 11,937,806
Ford Motor Credit Corp.
9/18/95 5.95 35,000,000 34,726,533
9/29/95 5.78 22,925,000 22,710,842
Generale Bank
10/17/95 6.07 25,000,000 24,683,444
General Electric Capital Corp.
8/1/95 6.09 (a) 40,000,000 40,000,000
8/3/95 6.02 20,000,000 19,993,411
9/19/95 5.85 10,000,000 9,921,736
(c)
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
General Electric Capital Services Inc.
9/15/95 5.80% $ 15,000,000 $ 14,893,125
General Electric Corp.
9/27/95 6.25 30,000,000 29,711,675
Golden Peanut Co.
9/8/95 5.90 17,000,000 16,895,204
Government of Canada
9/7/95 6.15 20,000,000 19,876,667
H.J. Heinz Co.
8/10/95 6.00 12,100,000 12,081,971
Hewlett-Packard Co.
9/12/95 5.94 4,515,000 4,484,238
International Nederlanden U.S. Funding Corp.
8/28/95 6.35 10,000,000 9,953,875
MetLife Funding Corp.
8/15/95 6.00 27,442,000 27,378,502
9/5/95 5.92 20,000,000 19,886,250
Morgan Stanley Group, Inc.
8/7/95 6.01 30,000,000 29,970,300
National Rural Util. Coop. Fin. Corp.
9/15/95 5.99 10,000,000 9,926,250
New Center Asset Trust
8/15/95 5.79 13,000,000 12,970,829
New South Wales Treasury Corp.
8/16/95 6.40 5,000,000 4,987,083
8/17/95 6.43 10,000,000 9,972,311
Norwest Corp.
8/29/95 6.01 8,000,000 7,963,164
9/6/95 6.01 20,000,000 19,881,800
11/21/95 5.77 3,000,000 2,947,173
11/27/95 5.77 15,000,000 14,721,717
Norwest Financial
9/11/95 6.06 23,000,000 22,844,405
Northern States Power Co.
8/4/95 6.01 33,000,000 32,983,665
Toronto Dominion Holdings USA, Inc.
8/15/95 6.40 25,000,000 24,939,722
9/29/95 5.90 25,000,000 24,761,951
U.S. West Communications
9/14/95 5.93 16,500,000 16,382,025
United Parcel Service
9/8/95 5.95 15,000,000 14,907,375
Wool International
8/16/95 6.40 30,000,000 29,922,500
TOTAL COMMERCIAL PAPER 1,142,315,007
(c)FEDERAL AGENCIES - 1.6%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS - 0.7%
8/1/95 5.92% (a) $ 14,000,000 $ 13,993,389
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 0.9%
8/14/95 6.40 20,000,000 19,955,222
TOTAL FEDERAL AGENCIES 33,948,611
(c)BANK NOTES - 3.6%
First Bank N.A. - Minnesota
8/7/95 6.00 25,000,000 25,000,000
First Union National Bank of North Carolina
11/13/95 5.75 13,000,000 13,000,000
Wachovia Bank of North Carolina, N.A.
8/25/95 5.92 40,000,000 40,000,768
TOTAL BANK NOTES 78,000,768
(c)MEDIUM-TERM NOTES (A) - 2.3%
Exxon Shipping Co.
8/1/95 6.08 25,000,000 25,000,000
General Electric Capital Corp.
8/1/95 6.00 25,000,000 24,995,555
TOTAL MEDIUM-TERM NOTES 49,995,555
(c)SHORT-TERM NOTES (A) (B) - 2.6%
CSA Funding - A
8/7/95 5.87 10,000,000 10,000,000
CSA Funding - B
8/7/95 5.87 22,000,000 22,000,000
CSA Funding - C
8/7/95 5.87 23,000,000 23,000,000
TOTAL SHORT-TERM NOTES 55,000,000
(c)TIME DEPOSITS - 3.0%
Deutsche Bank, A.G.
8/1/95 5.88 65,000,000 65,000,000
(c)MUNICIPAL SECURITIES (A) - 0.7%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Illinois Student Assistance Commission
8/2/95 5.94% $ 10,000,000 $ 10,000,000
New Orleans Aviation Board (MBIA Insured)
8/2/95 6.02 5,500,000 5,500,000
TOTAL MUNICIPAL SECURITIES 15,500,000
(c)REPURCHASE AGREEMENTS - 1.6%
MATURITY
AMOUNT
In a joint trading account
(U.S. Treasury Obligations)
dated 7/31/95 due 8/1/95:
At 5.83% $ 34,760,632 34,755,000
TOTAL INVESTMENTS - 100% $ 2,153,526,340
Total Cost for Income Tax Purposes $ 2,153,526,340
LEGEND
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due date on these types of
securities reflects the next interest rate reset date or, when applicable,
the final maturity date.
(e) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
CSA Funding - A 10/28/93 $ 10,000,000
CSA Funding - B 10/28/93 $ 22,000,000
CSA Funding - C 10/28/93 $ 23,000,000
INCOME TAX INFORMATION
At July 31, 1995, the fund had a capital loss carryforward of approximately
$774,000 of which $30,000, $35,000, $125,000 and $584,000 will expire on
July 31, 2000, 2001, 2002 and 2003, respectively.
For the period ended July 31, 1995, approximately 2% of the fund's
dividends to shareholders was derived from interest on U.S. Government
obligations.
DAILY MONEY FUND: MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995
7.ASSETS 8. 9.
10.Investment in securities, at value (including repurchase agreements of $34,755,000) - 11. $ 2,153,526,340
See accompanying schedule
12.Cash 13. 3,854,819
14.Receivable for investments sold 15. 3,800,000
16.Interest receivable 17. 5,480,990
18.Receivable from investment adviser for expense reductions 19. 246,600
20. 21.TOTAL ASSETS 22. 2,166,908,749
23.LIABILITIES 24. 25.
26.Payable for investments purchased $ 25,000,637 27.
28.Distributions payable 1,010,703 29.
30.Accrued management fee 882,354 31.
32.Other payables and accrued expenses 625,843 33.
34. 35.TOTAL LIABILITIES 36. 27,519,537
37.38.NET ASSETS 39. $ 2,139,389,212
40.Net Assets consist of: 41. 42.
43.Paid in capital 44. $ 2,140,162,843
45.Accumulated net realized gain (loss) on investments 46. (773,631)
47.48.NET ASSETS, for 2,140,162,843 shares outstanding 49. $ 2,139,389,212
50.51.NET ASSET VALUE, offering price and redemption price per share 52. $1.00
($2,139,389,212 (divided by) 2,140,162,843 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JULY 31, 1995
53.54.INTEREST INCOME 55. $ 106,285,814
56.EXPENSES 57. 58.
59.Management fee $ 9,232,796 60.
61.Transfer agent fees 5,094,304 62.
63.Accounting fees and expenses 188,697 64.
65.Non-interested trustees' compensation 28,984 66.
67.Custodian fees and expenses 94,819 68.
69.Registration fees 188,623 70.
71.Audit 34,150 72.
73.Legal 19,405 74.
75.Reports to shareholders 873 76.
77.Miscellaneous 15,281 78.
79. Total expenses before reductions 14,897,932 80.
81. Expense reductions (2,895,313) 12,002,619
82.83.NET INTEREST INCOME 84. 94,283,195
85.86.NET REALIZED GAIN (LOSS) ON INVESTMENTS 87. (583,736)
88.89.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 90. $ 93,699,459
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JULY 31,
1995 1994
91.INCREASE (DECREASE) IN NET ASSETS
92.Operations $ 94,283,195 $ 44,783,808
Net interest income
93. Net realized gain (loss) (583,736) (124,844)
94. 95.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 93,699,459 44,658,964
96.Distributions to shareholders from net interest income (94,283,195) (44,783,808)
97.Share transactions at net asset value of $1.00 per share 9,812,791,289 9,151,729,228
Proceeds from sales of shares
98. Reinvestment of distributions from net interest income 85,047,974 37,385,748
99. Cost of shares redeemed (9,282,734,518) (9,115,524,819)
100.101. 615,104,745 73,590,157
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
102. 614,521,009 73,465,313
103.TOTAL INCREASE (DECREASE) IN NET ASSETS
104.NET ASSETS 105. 106.
107. Beginning of period 1,524,868,203 1,451,402,890
108. End of period $ 2,139,389,212 $ 1,524,868,203
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
109. YEARS ENDED JULY 31,
110. 1995 1994 1993 1992 1991
111.SELECTED PER-SHARE DATA
112.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
113.Income from Investment Operations .050 .029 .028 .041 .067
Net interest income
114.Less Distributions (.050) (.029) (.028) (.041) (.067)
From net interest income
115.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
116.TOTAL RETURN A 5.16 2.98 2.82 4.21 6.90
% % % % %
117.RATIOS AND SUPPLEMENTAL DATA
118.Net assets, end of period (000 omitted) $ 2,139,389 $ 1,524,868 $ 1,451,403 $ 1,531,364 $ 1,714,108
119.Ratio of expenses to average net assets .65 .65 .61 .59 .60
% % % % %
120.Ratio of expenses to average net assets before .81 .74 .61 .59 .60
expense reductions % % % % %
121.Ratio of net interest income to average net
assets 5.11 2.96 2.76 4.19 6.61
% % % % %
</TABLE>
A TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
DAILY MONEY FUND: U.S. TREASURY PORTFOLIO
INVESTMENTS JULY 31, 1995
Showing Percentage of Total Value of Investments
(c)U.S. TREASURY OBLIGATIONS - 23.5%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS - 10.2%
8/10/95 6.29% $ 65,000,000 $ 64,900,875
8/24/95 5.48 59,000,000 58,803,989
8/31/95 6.19 65,000,000 64,675,000
188,379,864
U.S. TREASURY NOTES - 13.3%
1/31/96 5.71 15,000,000 14,863,208
1/31/96 5.90 20,000,000 19,800,298
2/15/96 5.83 10,000,000 10,094,660
2/15/96 5.84 7,000,000 7,065,699
2/15/96 5.88 4,000,000 3,970,337
2/15/96 6.18 31,000,000 30,725,510
2/15/96 6.21 45,000,000 44,601,593
2/29/96 5.52 16,000,000 15,905,203
2/29/96 5.60 10,000,000 9,934,960
4/15/96 5.51 21,000,000 21,519,283
4/15/96 5.59 25,000,000 25,603,985
4/30/96 5.65 40,000,000 39,911,324
243,996,060
TOTAL U.S. TREASURY OBLIGATIONS 432,375,924
(c)REPURCHASE AGREEMENTS - 76.5%
MATURITY
AMOUNT
With First Boston Corporation:
At 5.78%, dated 6/5/95 due 8/4/95:
U.S. Treasury Obligations
(principal amount $23,663,000)
7/25/96 $ 22,211,933 $ 22,000,000
With Merrill Lynch Government Securities, Inc.:
At 5.80% (a), dated 5/11/95 due 9/8/95:
U.S. Treasury Obligations
(principal amount $23,605,000)
7.75% to 9.875%,
12/31/99 to 11/15/15 24,810,573 (b) 24,340,000
At 5.8375% (a),
dated 5/19/95 due 9/29/95:
U.S. Treasury Obligations
(principal amount $24,100,000)
8.125% to 11.25%,
2/15/15 to 8/15/19 27,582,291 (b) 27,000,000
In a joint trading account
(U.S. Treasury Obligations)
dated 7/31/95 due 8/1/95
(Notes 2 and 3):
At 5.82% 1,279,206,847 1,279,000,000
At 5.83% 53,746,707 53,738,000
TOTAL REPURCHASE AGREEMENTS 1,406,078,000
TOTAL INVESTMENTS - 100% $ 1,838,453,924
Total Cost for Income Tax Purposes $ 1,838,453,924
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due date on these types of
securities reflects the next interest rate reset date or, when applicable,
the final maturity date.
(b) For financial statement purposes, the maturity amount is calculated
based on the rate at period end.
INCOME TAX INFORMATION
At July 31, 1995 the fund had a capital loss carryforward of approximately
$476,000 of which $15,000 and $461,000 will expire on July 31, 2001 and
2002, respectively.
For the period ended July 31, 1995, approximately 28% of the fund's
dividends to shareholders was derived from interest on U.S. Government
obligations.
DAILY MONEY FUND: U.S. TREASURY PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JULY 31, 1995
122.ASSETS 123. 124.
125.Investment in securities, at value (including repurchase agreements of $1,406,078,000) - 126. $ 1,838,453,924
See accompanying schedule
127.Cash 128. 1,259
129.Interest receivable 130. 5,736,505
131.Receivable from investment adviser for expense reductions 132. 87,604
133. 134.TOTAL ASSETS 135. 1,844,279,292
136.LIABILITIES 137. 138.
139.Share transactions in process $ 8,757,734 140.
141.Distributions payable 3,435,216 142.
143.Accrued management fee 800,772 144.
145.Other payables and accrued expenses 434,537 146.
147. 148.TOTAL LIABILITIES 149. 13,428,259
150.151.NET ASSETS 152. $ 1,830,851,033
153.Net Assets consist of: 154. 155.
156.Paid in capital 157. $ 1,831,276,830
158.Accumulated net realized gain (loss) on investments 159. (425,797)
160.161.NET ASSETS 162. $ 1,830,851,033
163.164.INITIAL CLASS: 166. $1.00
165.NET ASSET VALUE, offering price and redemption price per share
($1,827,696,737 (divided by) 1,828,121,801 shares)
167.CLASS B: 169. $1.00
168.NET ASSET VALUE, offering price and redemption price per share
($3,154,296 (divided by) 3,155,029 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JULY 31, 1995
170.171.INTEREST INCOME 172. $ 108,425,162
173.EXPENSES 174. 175.
176.Management fee $ 9,784,211 177.
178.Transfer agent fees 2,435,547 179.
Initial Class
180. Class B 28,380 181.
182.Distribution fees - Class B 33,311 183.
184.Accounting fees and expenses 196,883 185.
186.Non-interested trustees' compensation 46,444 187.
188.Custodian fees and expenses 81,307 189.
190.Registration fees - Initial Class 251,232 191.
192.Registration fees - Class B 37,382 193.
194.Audit 42,688 195.
196.Legal 18,535 197.
198.Reports to shareholders 748 199.
200.Miscellaneous 20,954 201.
202. Total expenses before reductions 12,977,622 203.
204. Expense reductions (228,240) 12,749,382
205.206.NET INTEREST INCOME 207. 95,675,780
208.209.NET REALIZED GAIN (LOSS) ON INVESTMENTS 210. 29,208
211.212.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 213. $ 95,704,988
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JULY 31,
1995 1994
214.INCREASE (DECREASE) IN NET ASSETS
215.Operations $ 95,675,780 $ 75,067,061
Net interest income
216. Net realized gain (loss) 29,208 (460,852)
217. 95,704,988 74,606,209
218.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
219.Distributions to shareholders from:
Net interest income
220. (95,473,806) (75,066,532)
Initial Class
221. (201,974) (529)
Class B
222.Share transactions - net increase (decrease) (194,955,395) (922,932,430)
223. (194,926,187) (923,393,282)
224.TOTAL INCREASE (DECREASE) IN NET ASSETS
225.NET ASSETS 226. 227.
228. Beginning of period 2,025,777,220 2,949,170,502
229. End of period $ 1,830,851,033 $ 2,025,777,220
</TABLE>
FINANCIAL HIGHLIGHTS - INITIAL CLASS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
230. YEARS ENDED JULY 31,
231. 1995 1994 1993 1992 1991
232.SELECTED PER-SHARE DATA
233.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
234.Income from Investment Operations
235. Net interest income .049 .029 .027 .042 .065
236.Less Distributions
237. From net interest income (.049) (.029) (.027) (.042) (.065)
238.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
239.TOTAL RETURN A 5.02 2.89 2.78 4.25 6.69
% % % % %
240.RATIOS AND SUPPLEMENTAL DATA
241.Net assets, end of period (000 omitted) $ 1,827,697 $ 2,025,149 $ 2,949,171 $ 3,093,714 $ 1,701,704
242.Ratio of expenses to average net assets .65 .60 .57 .59 .59
% % % % %
243.Ratio of expenses to average net assets before .66 .60 .57 .59 .59
expense reductions % % % % %
244.Ratio of net interest income to average net
assets 4.89 2.81 2.73 4.14 6.42
% % % % %
</TABLE>
A TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
FINANCIAL HIGHLIGHTS - CLASS B
<TABLE>
<CAPTION>
<S> <C> <C> <C>
YEAR JULY 1, 1994
ENDED (COMMENCEMENT
JULY 31, OF OPERATIONS) TO
1995 JULY 31,
1994
245.SELECTED PER-SHARE DATA
246.Net asset value, beginning of period $ 1.000 $ 1.000
247.Income from Investment Operations
248. Net interest income .042 .002
249.Less Distributions
250. From net interest income (.042) (.002)
251.Net asset value, end of period $ 1.000 $ 1.000
252.TOTAL RETURN B, C 4.28 .25%
%
253.RATIOS AND SUPPLEMENTAL DATA
254.Net assets, end of period (000 omitted) $ 3,154 $ 628
255.Ratio of expenses to average net assets 1.35 1.35%
% A
256.Ratio of expenses to average net assets before expense reductions 2.59 2.52%
% A
257.Ratio of net interest income to average net assets 4.22 3.03%
% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE LEVIED
ON CLASS B SHARE REDEMPTIONS AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES.
Money Market Portfolio and U.S. Treasury Portfolio(the funds) are funds of
Daily Money Fund(the trust). 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. Each fund is
authorized to issue an unlimited number of shares.
U.S. Treasury Portfolio offers two classes of shares, Initial Class and
Class B, each of which has equal rights as to assets and voting privileges.
Each class has exclusive voting rights with respect to its distribution
plan. The fund commenced sale of Class B shares on July 1, 1994. Interest
income, realized and unrealized capital gains and losses, and the common
expenses of the fund are allocated on a pro rata basis to each class based
on the relative net assets of each class to the total net assets of the
fund. Each class of shares differs in its respective distribution, transfer
agent, registration, and certain other class-specific fees and expenses.
The Class B shares are offered by exchange only to investors in Class B
shares of certain Fidelity Advisor Funds.
The following summarizes the significant accounting policies of the funds:
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, each fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
the fiscal year. The schedules of investments include 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. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, 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 that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. The funds' investment adviser, FMR, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
RESTRICTED SECURITIES. The Money Market 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
$55,000,000 or 2.6% of net assets.
3. JOINT TRADING ACCOUNT.
At the end of the period, the U.S. Treasury 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 maturity values of the
joint trading account investments having variable rates are calculated
based on the rate at period end. The maturity values of the joint trading
account investments were $1,279,206,847 at 5.82% and $53,746,707 at 5.83%.
The investments in repurchase agreements through the joint trading account
are summarized as follows:
SUMMARY OF JOINT TRADING
DATED JULY 31, 1995, DUE AUGUST 1, 1995 AT 5.82%
Number of dealers or banks 13
Maximum amount with one dealer or bank 33.7%
Aggregate principal amount of agreements $4,742,000,000
Aggregate maturity amount of agreements $4,742,766,902
Aggregate market value of collateral $4,842,463,694
Coupon rates of collateral 0% to 14.25%
Maturity dates of collateral 8/10/95 to 2/15/25
DATED JULY 31, 1995, DUE AUGUST 1, 1995 AT 5.83%
Number of dealers or banks 5
Maximum amount with one dealer or bank 34.5%
Aggregate principal amount of agreements $580,000,000
Aggregate maturity amount of agreements $580,093,981
Aggregate market value of collateral $592,014,958
Coupon rates of collateral 0% to 14.25%
Maturity dates of collateral 8/10/95 to 2/15/25
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a fee that
is computed daily at an annual rate of .50% of the funds' average net
assets.
SUB-ADVISER FEE. As each 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 fees are paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to each fund's Distribution and Service
Plan.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans) adopted on behalf of the Money Market fund and Initial
shares of the U.S. Treasury fund, and in accordance with Rule 12b-1 of the
1940 Act, FMR or the funds' distributor, Fidelity Distributors Corporation
(FDC), an affiliate of FMR, may use their resources to pay administrative
and promotional expenses related to the sale of each fund's shares. Subject
to the approval of each Board of Trustees, the Plans also authorize
payments to third parties that assist in the sale of each fund's shares or
render shareholder support services. FMR or FDC has informed the funds that
payments made to third parties under the Plans amounted to $4,120,195 and
$6,010,828 for the Money Market fund and the Initial shares of U.S.
Treasury fund, respectively, for the period.
In accordance with Rule 12b-1 of the 1940 Act, the Trustees have adopted a
separate distribution plan with respect to
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
the Class B shares of the U.S. Treasury fund ("Class B Plan"), pursuant to
which the fund pays FDC a distribution and service fee. This fee is based
on an annual rate of 1.00% (of which .75% represents a distribution fee and
.25% represents a shareholder service fee) of the average net assets of the
Class B shares. For the period, the fund paid FDC $33,311 under the Class B
Plan, of which $11,949 was paid to securities dealers, banks and other
financial institutions for the distribution of Class B shares, and
providing shareholder support services.
SALES LOAD. FDC receives the proceeds of a contingent deferred sales charge
levied on Class B share redemptions occurring within five years of
purchase. The charge is based on declining rates which range from 4% to 1%
of the lesser of the cost of shares at the initial date of purchase or the
net asset value of the redeemed shares, excluding any reinvested dividends
and capital gains. For the period, FDC received contingent deferred sales
charges of $8,806 on Class B share redemptions from the fund. When Class B
shares are sold, FDC pays commissions from its own resources to dealers
through which the sales are made.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations Company
(FIIOC), an affiliate of FMR, is the funds' transfer, dividend disbursing
and shareholder servicing agent. During the period August 1, 1994 to
December 31, 1994, FIIOC received fees based on the type, size, number of
accounts and the number of transactions made by shareholders. Effective
January 1, 1995, the Board of Trustees approved a revised transfer agent
contract pursuant to which FIIOC receives account fees and asset-based fees
that vary according to account size and type of account. FIIOC pays for
typesetting, printing and mailing of all shareholder reports, except proxy
statements.
ACCOUNTING FEES. Fidelity Service Co. (FSC), an affiliate of FMR, maintains
the funds' accounting records. The fee is based on the level of average net
assets for the month plus out-of-pocket expenses.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above a specified percentage of average net assets.
(I) MONEY MARKET. For the period, this expense limitation was .65% of
average net assets and the reimbursement reduced expenses by $2,895,313.
(II) U.S. TREASURY INITIAL CLASS. For the period, this expense limitation
was .65% of average net assets and the reimbursement reduced expenses by
$168,921.
(III) U.S. TREASURY CLASS B. For the period, this expense limitation was
1.35% of average net assets and the reimbursement reduced expenses by
$59,319.
6. 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 U.S. Treasury fund,
totaling 44%.
7. SHARE TRANSACTIONS.
Share transactions for both classes of the U.S. Treasury fund at net asset
value of $1.00 per share were as follows:
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR YEAR
ENDED ENDED
JULY 31, 1995 JULY 31, 1994
INITIAL CLASS:
Proceeds from sales of shares $ 10,338,354,217 $ 13,798,065,709
Reinvestment of distributions from net interest income 49,283,595 41,469,354
Cost of shares redeemed (10,585,120,039) (14,763,095,690)
Net increase (decrease) in net assets and shares resulting from share transactions $ (197,482,227) $ (923,560,627)
YEAR JULY 1,1994
ENDED (COMMENCEMENT
JULY 31, 1995 OF OPERATIONS) TO
JULY 31, 1994
CLASS B:
Proceeds from sales of shares $ 17,802,599 $ 627,668
Reinvestment of distributions from net interest income 185,089 529
Cost of shares redeemed (15,460,856) -
Net increase (decrease) in net assets and shares resulting from share transactions $ 2,526,832 $ 628,197
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Daily Money Fund and the Shareholders of Money Market
Portfolio and U.S. Treasury Portfolio:
We have audited the accompanying statements of assets and liabilities of
Daily Money Fund: Money Market Portfolio and U.S. Treasury Portfolio,
including the schedules of portfolio investments, as of July 31, 1995, and
the related statements of operations for the year then ended, the
statements of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the
period then ended for the Money Market Portfolio and each of the five years
in the period then ended for the U.S. Treasury Portfolio (Initial Class)
and for the year then ended July 31, 1995 and for the period July 1, 1994
(commencement of operations) to July 31, 1994 for the U.S. Treasury
Portfolio (Class B). These financial statements and financial highlights
are the responsibility of the fund's management. Our responsibility is to
express an opinion on these financial statements and financial highlights
based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of July 31, 1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Daily Money Fund: Money Market Portfolio and U.S. Treasury Portfolio as
of July 31, 1995, the results of their operations for the year then ended,
the changes in their net assets for each of the two years in the period
then ended, and the financial highlights for each of the five years in the
period then ended for the Money Market Portfolio and each of the five years
in the period then ended for the U.S. Treasury Portfolio (Initial Class)
and for the year then ended July 31, 1995 and for the period July 1, 1994
(commencement of operations) to July 31, 1994 for the U.S. Treasury
Portfolio (Class B), in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
August 25, 1995
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INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Leland Barron, VICE PRESIDENT
Fred L. Henning, Jr., VICE PRESIDENT
Arthur S. Loring, SECRETARY
Kenneth A. Rathgeber, TREASURER
Thomas D. Maher, ASSISTANT VICE PRESIDENT
Michael D. Conway, ASSISTANT TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND
SHAREHOLDER
SERVICING AGENTS
Fidelity Investments Institutional Operations Company
Boston, MA
CUSTODIAN
Morgan Guaranty Trust Company of New York
New York, NY
* INDEPENDENT TRUSTEES
