(registered trademark)
DAILY MONEY
FUND
ANNUAL REPORT
JULY 31, 1995
DMF-ANN-0995
3345
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
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
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
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
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
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
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
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
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
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
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
TIME DEPOSITS - 3.0%
Deutsche Bank, A.G.
8/1/95 5.88 65,000,000 65,000,000
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
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
(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) 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
1.ASSETS 2. 3.
4.Investment in securities, at value (including repurchase agreements of $34,755,000) - 5. $ 2,153,526,340
See accompanying schedule
6.Cash 7. 3,854,819
8.Receivable for investments sold 9. 3,800,000
10.Interest receivable 11. 5,480,990
12.Receivable from investment adviser for expense reductions 13. 246,600
14. 15.TOTAL ASSETS 16. 2,166,908,749
17.LIABILITIES 18. 19.
20.Payable for investments purchased $ 25,000,637 21.
22.Distributions payable 1,010,703 23.
24.Accrued management fee 882,354 25.
26.Other payables and accrued expenses 625,843 27.
28. 29.TOTAL LIABILITIES 30. 27,519,537
31.32.NET ASSETS 33. $ 2,139,389,212
34.Net Assets consist of: 35. 36.
37.Paid in capital 38. $ 2,140,162,843
39.Accumulated net realized gain (loss) on investments 40. (773,631)
41.42.NET ASSETS, for 2,140,162,843 shares outstanding 43. $ 2,139,389,212
44.45.NET ASSET VALUE, offering price and redemption price per share 46. $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
47.48.INTEREST INCOME 49. $ 106,285,814
50.EXPENSES 51. 52.
53.Management fee $ 9,232,796 54.
55.Transfer agent fees 5,094,304 56.
57.Accounting fees and expenses 188,697 58.
59.Non-interested trustees' compensation 28,984 60.
61.Custodian fees and expenses 94,819 62.
63.Registration fees 188,623 64.
65.Audit 34,150 66.
67.Legal 19,405 68.
69.Reports to shareholders 873 70.
71.Miscellaneous 15,281 72.
73. Total expenses before reductions 14,897,932 74.
75. Expense reductions (2,895,313) 12,002,619
76.77.NET INTEREST INCOME 78. 94,283,195
79.80.NET REALIZED GAIN (LOSS) ON INVESTMENTS 81. (583,736)
82.83.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 84. $ 93,699,459
</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 $ 94,283,195 $ 44,783,808
Net interest income
87. Net realized gain (loss) (583,736) (124,844)
88. 89.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 93,699,459 44,658,964
90.Distributions to shareholders from net interest income (94,283,195) (44,783,808)
91.Share transactions at net asset value of $1.00 per share 9,812,791,289 9,151,729,228
Proceeds from sales of shares
92. Reinvestment of distributions from net interest income 85,047,974 37,385,748
93. Cost of shares redeemed (9,282,734,518) (9,115,524,819)
94.95. 615,104,745 73,590,157
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
96. 97.TOTAL INCREASE (DECREASE) IN NET ASSETS 614,521,009 73,465,313
98.NET ASSETS 99. 100.
101. Beginning of period 1,524,868,203 1,451,402,890
102. End of period $ 2,139,389,212 $ 1,524,868,203
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
103. YEARS ENDED 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 .050 .029 .028 .041 .067
Net interest income
108.Less Distributions (.050) (.029) (.028) (.041) (.067)
From net interest income
109.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
110.TOTAL RETURN A 5.16 2.98 2.82 4.21 6.90
% % % % %
111.RATIOS AND SUPPLEMENTAL DATA
112.Net assets, end of period (000 omitted) $ 2,139,389 $ 1,524,868 $ 1,451,403 $ 1,531,364 $ 1,714,108
113.Ratio of expenses to average net assets .65 .65 .61 .59 .60
% % % % %
114.Ratio of expenses to average net assets before .81 .74 .61 .59 .60
expense reductions % % % % %
115.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
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
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
116.ASSETS 117. 118.
119.Investment in securities, at value (including repurchase agreements of $1,406,078,000) - 120. $ 1,838,453,924
See accompanying schedule
121.Cash 122. 1,259
123.Interest receivable 124. 5,736,505
125.Receivable from investment adviser for expense reductions 126. 87,604
127. 128.TOTAL ASSETS 129. 1,844,279,292
130.LIABILITIES 131. 132.
133.Share transactions in process $ 8,757,734 134.
135.Distributions payable 3,435,216 136.
137.Accrued management fee 800,772 138.
139.Other payables and accrued expenses 434,537 140.
141. 142.TOTAL LIABILITIES 143. 13,428,259
144.145.NET ASSETS 146. $ 1,830,851,033
147.Net Assets consist of: 148. 149.
150.Paid in capital 151. $ 1,831,276,830
152.Accumulated net realized gain (loss) on investments 153. (425,797)
154.155.NET ASSETS 156. $ 1,830,851,033
157.158.INITIAL CLASS: 160. $1.00
159.NET ASSET VALUE, offering price and redemption price per share
($1,827,696,737 (divided by) 1,828,121,801 shares)
161.CLASS B: 163. $1.00
162.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
164.165.INTEREST INCOME 166. $ 108,425,162
167.EXPENSES 168. 169.
170.Management fee $ 9,784,211 171.
172.Transfer agent fees 2,435,547 173.
Initial Class
174. Class B 28,380 175.
176.Distribution fees - Class B 33,311 177.
178.Accounting fees and expenses 196,883 179.
180.Non-interested trustees' compensation 46,444 181.
182.Custodian fees and expenses 81,307 183.
184.Registration fees - Initial Class 251,232 185.
186.Registration fees - Class B 37,382 187.
188.Audit 42,688 189.
190.Legal 18,535 191.
192.Reports to shareholders 748 193.
194.Miscellaneous 20,954 195.
196. Total expenses before reductions 12,977,622 197.
198. Expense reductions (228,240) 12,749,382
199.200.NET INTEREST INCOME 201. 95,675,780
202.203.NET REALIZED GAIN (LOSS) ON INVESTMENTS 204. 29,208
205.206.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 207. $ 95,704,988
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JULY 31,
1995 1994
208.INCREASE (DECREASE) IN NET ASSETS
209.Operations $ 95,675,780 $ 75,067,061
Net interest income
210. Net realized gain (loss) 29,208 (460,852)
211. 95,704,988 74,606,209
212.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
213.Distributions to shareholders from:
Net interest income
214. (95,473,806) (75,066,532)
Initial Class
215. (201,974) (529)
Class B
216.Share transactions - net increase (decrease) (194,955,395) (922,932,430)
217. (194,926,187) (923,393,282)
218.TOTAL INCREASE (DECREASE) IN NET ASSETS
219.NET ASSETS 220. 221.
222. Beginning of period 2,025,777,220 2,949,170,502
223. End of period $ 1,830,851,033 $ 2,025,777,220
</TABLE>
FINANCIAL HIGHLIGHTS - INITIAL CLASS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
224. YEARS ENDED JULY 31,
225. 1995 1994 1993 1992 1991
226.SELECTED PER-SHARE DATA
227.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
228.Income from Investment Operations
229. Net interest income .049 .029 .027 .042 .065
230.Less Distributions
231. From net interest income (.049) (.029) (.027) (.042) (.065)
232.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
233.TOTAL RETURN A 5.02 2.89 2.78 4.25 6.69
% % % % %
234.RATIOS AND SUPPLEMENTAL DATA
235.Net assets, end of period (000 omitted) $ 1,827,697 $ 2,025,149 $ 2,949,171 $ 3,093,714 $ 1,701,704
236.Ratio of expenses to average net assets .65 .60 .57 .59 .59
% % % % %
237.Ratio of expenses to average net assets before .66 .60 .57 .59 .59
expense reductions % % % % %
238.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
239.SELECTED PER-SHARE DATA
240.Net asset value, beginning of period $ 1.000 $ 1.000
241.Income from Investment Operations
242. Net interest income .042 .002
243.Less Distributions
244. From net interest income (.042) (.002)
245.Net asset value, end of period $ 1.000 $ 1.000
246.TOTAL RETURN B, C 4.28 .25%
%
247.RATIOS AND SUPPLEMENTAL DATA
248.Net assets, end of period (000 omitted) $ 3,154 $ 628
249.Ratio of expenses to average net assets 1.35 1.35%
% A
250.Ratio of expenses to average net assets before expense reductions 2.59 2.52%
% A
251.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
