FIDELITY U.S. TREASURY INCOME PORTFOLIO
SEMIANNUAL REPORT
JANUARY 31, 1995
FIDELITY U.S. TREASURY INCOME PORTFOLIO
INVESTMENTS/JANUARY 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF
INVESTMENTS)
ANNUALIZED ANNUALIZED
YIELD AT YIELD AT
DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE
DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1)
U.S. Treasury Obligations - 100.0%
U.S. TREASURY BILLS - 66.5%
2/2/95 5.34% $ 9,161,000 $ 9,159,656
2/2/95 5.38 26,601,000 26,597,069
2/9/95 4.52 36,803,000 36,766,197
2/9/95 5.29 3,290,000 3,286,180
2/9/95 5.44 20,000,000 19,976,133
2/16/95 4.83 8,158,000 8,141,684
3/2/95 5.53 20,115,000 20,026,365
3/2/95 5.67 15,296,000 15,227,183
3/2/95 5.72 9,060,000 9,018,764
3/9/95 5.39 4,360,000 4,336,761
3/9/95 5.65 50,000,000 49,721,000
3/9/95 5.71 10,581,000 10,521,429
3/9/95 5.80 9,373,000 9,319,386
3/9/95 5.81 2,151,000 2,138,664
3/16/95 5.50 17,550,000 17,436,069
3/16/95 5.62 20,000,000 19,867,536
3/16/95 5.67 25,000,000 24,833,226
3/16/95 5.69 13,623,000 13,531,877
3/23/95 5.52 3,182,000 3,158,091
3/23/95 5.67 40,000,000 39,689,451
3/23/95 5.68 10,000,000 9,922,431
3/23/95 5.70 15,000,000 14,883,333
3/23/95 5.72 436,000 432,597
4/6/95 5.54 3,810,000 3,773,390
4/6/95 5.73 84,497,000 83,649,777
4/6/95 5.75 15,532,000 15,375,714
4/6/95 5.81 10,602,000 10,494,472
4/6/95 5.89 7,612,000 7,533,918
4/13/95 5.73 12,000,000 11,866,757
4/13/95 5.84 67,027,000 66,266,895
4/13/95 5.87 815,000 805,742
4/20/95 5.80 5,455,000 5,387,453
4/20/95 5.86 60,000,000 59,252,500
4/27/95 5.80 20,156,000 19,884,258
4/27/95 5.93 25,518,000 25,166,738
5/4/95 5.74 1,560,000 1,537,754
5/4/95 6.10 51,375,000 50,591,189
5/11/95 6.33 11,685,000 11,487,056
741,064,695
U.S. TREASURY NOTES - 33.5%
2/15/95 5.01% $ 18,600,000 $ 18,618,122
2/15/95 5.22 18,750,000 18,766,440
2/15/95 5.24 2,612,000 2,614,272
2/15/95 5.43 8,449,000 8,455,593
2/15/95 5.55 75,000,000 74,992,188
2/15/95 5.76 5,162,000 5,172,020
2/28/95 5.03 50,514,000 50,470,259
2/28/95 5.30 22,776,000 22,750,429
2/28/95 5.36 20,000,000 19,977,290
2/28/95 5.46 25,000,000 24,970,178
4/30/95 5.92 22,319,000 22,206,572
4/30/95 6.18 20,000,000 19,884,884
4/30/95 6.26 11,000,000 10,934,952
4/30/95 6.28 21,076,000 20,950,280
5/15/95 6.33 25,000,000 25,145,149
5/15/95 6.38 1,652,000 1,661,287
5/31/95 6.09 3,844,000 3,818,555
5/31/95 6.10 12,029,000 11,948,592
5/31/95 6.13 10,060,000 9,991,802
373,328,864
TOTAL INVESTMENTS - 100% $ 1,114,393,559
Total Cost for Income Tax Purposes - $1,114,393,559
INCOME TAX INFORMATION:
At July 31, 1994, the fund had a capital loss carryforward of approximately
$222,000 of which $60,000 and $162,000 will expire on July 31, 2001 and
2002, respectively.
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
<S> <C> <C>
January 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value - See accompanying schedule $ 1,114,393,559
Cash 207,880
Interest receivable 7,269,975
Receivable from investment adviser for expense 238,179
reductions
TOTAL ASSETS 1,122,109,593
LIABILITIES
Dividends payable $ 4,700,973
Accrued management fee 454,706
TOTAL LIABILITIES 5,155,679
NET ASSETS $ 1,116,953,914
Net Assets consist of:
Paid in capital $ 1,116,923,217
Accumulated net realized gain (loss) on investments 30,697
NET ASSETS, for 1,116,923,217 shares outstanding $ 1,116,953,914
NET ASSET VALUE, offering price and redemption price per share ($1,116,953,914 (divided by) 1,116,923,217 $1.00
shares)
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended January 31, 1995 (Unaudited)
INTEREST INCOME $ 29,506,867
EXPENSES
Management fee $ 2,476,265
Non-interested trustees' compensation 2,928
Total expenses before 2,479,193
reductions
Expense reductions (1,298,625) 1,180,568
NET INTEREST INCOME 28,326,299
NET REALIZED GAIN (LOSS) ON 50,345
INVESTMENTS
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 28,376,644
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 28,326,299 $ 36,180,457
Net interest income
Net realized gain (loss) 50,345 (162,127)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 28,376,644 36,018,330
Dividends to shareholders from net interest income (28,326,299) (36,180,457)
Share transactions at net asset value of $1.00 per share 2,572,766,932 4,258,629,047
Proceeds from sales of shares
Reinvestment of dividends from net interest income 6,332,458 9,408,877
Cost of shares redeemed (2,511,365,437) (4,266,497,201)
Net increase (decrease) in net assets and shares resulting from share transactions 67,733,953 1,540,723
TOTAL INCREASE (DECREASE) IN NET ASSETS 67,784,298 1,378,596
NET ASSETS
Beginning of period 1,049,169,616 1,047,791,020
End of period $ 1,116,953,914 $ 1,049,169,616
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 3, 1990
ENDED (COMMENCEMENT
JANUARY 31, 1995 OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1994 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .024 .032 .031 .045 .055
Net interest income
Less Distributions (.024) (.032) (.031) (.045) (.055)
From net interest income
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 2.43% 3.27% 3.10% 4.64% 5.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted)$ 1,116,954 $ 1,049,170 $ 1,047,791 $ 1,197,559 $ 705,543
Ratio of expenses to average net
assets C .20%A .20% .20% .20% .03%A
Ratio of expenses to average net
assets before .42%A .42% .42% .42% .42%A
expense reductions C
Ratio of net interest income to average
net assets 4.80%A 3.22% 3.05% 4.43% 6.34%A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN.
C SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JANUARY 31, 1995 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity U.S. Treasury Income Portfolio (the fund) is a fund of Daily Money
Fund (the trust) and is authorized to issue an unlimited number of shares.
The trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company
organized as a Delaware business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .42% of the fund's average net
assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
3. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .20% of average net assets. For the
period, the reimbursement reduced the expenses by $1,298,625.
4. BENEFICIAL INTEREST.
At the end of the period, 2 shareholders were each record owners of more
than 10% of the total outstanding shares of the fund, totaling 46%.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS
PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE
NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE
FDIC, THE FEDERAL RESERVE BOARD OR ANY
OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE POSSIBLE
LOSS OF PRINCIPAL. NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
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, VICE PRESIDENT
Thomas D. Maher, ASSISTANT VICE PRESIDENT
Arthur S. Loring, SECRETARY
Stephen P. Jonas, TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
TRUSTEES
J. Gary Burkhead
Ralph F. Cox
Phyllis Burke Davis
Richard J. Flynn
Edward C. Johnson 3d
E. Bradley Jones
Donald J. Kirk
Peter S. Lynch
Edward H. Malone
Marvin L. Mann
Gerald C. McDonough
Thomas R. Williams
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND
SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company
Boston, MA
CUSTODIAN
Morgan Guaranty Trust Company of New York
New York, NY
FUST-3-95S
DAILY MONEY FUND
SEMIANNUAL REPORT
JANUARY 31, 1995
DAILY MONEY FUND: MONEY MARKET PORTFOLIO
INVESTMENTS/JANUARY 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF
INVESTMENTS)
ANNUALIZED ANNUALIZED
YIELD AT YIELD AT
DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE
DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1)
Bankers' Acceptances - 3.8%
DOMESTIC BANKERS' ACCEPTANCES - 2.2%
Chase Manhattan Bank
2/6/95 5.74% $ 22,200,000 $ 22,182,363
2/9/95 5.75 3,200,000 3,195,932
Morgan Bank (Delaware)
2/7/95 6.10 20,000,000 19,979,833
45,358,128
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.6%
Barclays Bank, PLC
3/13/95 5.35 8,000,000 7,953,689
Dai-Ichi Kangyo Bank, Ltd.
2/6/95 5.81 11,900,000 11,890,447
2/6/95 6.26 10,000,000 9,991,389
Rabobank Nederland, N.V.
2/9/95 5.72 2,900,000 2,896,327
32,731,852
TOTAL BANKERS' ACCEPTANCES 78,089,980
Certificates of Deposit - 16.1%
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS
Bank of Montreal
2/15/95 5.82 25,000,000 25,000,000
Bayerische Landesbank Girozentrale
2/3/95 5.82 50,000,000 50,000,000
Caisse Nationale de Credit Agricole
4/28/95 5.91 10,000,000 9,998,451
Canadian Imperial Bank of Commerce
2/17/95 5.77 25,000,000 25,000,000
Commerzbank, Germany
4/7/95 5.75 10,000,000 10,000,492
4/14/95 5.73 20,000,000 20,000,000
Rabobank Nederland, N.V.
2/1/95 5.84 5,000,000 5,000,000
3/7/95 5.20 25,000,000 24,999,770
Sanwa Bank, Ltd.
2/17/95 5.90 6,000,000 5,999,640
2/27/95 6.00 10,000,000 10,000,144
Societe Generale
2/6/95 5.75 25,000,000 25,000,000
3/1/95 6.00 25,000,000 25,000,000
3/17/95 5.93 30,000,000 30,000,000
4/5/95 5.80 10,000,000 10,000,000
Swiss Bank Corp.
3/6/95 6.32 25,000,000 25,000,000
3/27/95 5.63 25,000,000 25,000,000
TOTAL CERTIFICATES OF DEPOSIT 325,998,497
Commercial Paper - 47.9%
Abbey National Treasury Services
5/9/95 6.02% $ 13,000,000 $ 12,795,088
Associates Corp. of North America
2/27/95 6.03 25,000,000 24,891,667
3/2/95 6.08 20,000,000 19,902,528
B.B.V. Finance (Delaware), Inc.
2/27/95 6.03 25,500,000 25,389,500
BHF Finance (Delaware), Inc.
2/7/95 5.81 25,000,000 24,975,833
2/8/95 5.67 25,000,000 24,972,535
BP America, Inc.
2/16/95 5.68 35,000,000 34,917,604Bank of New York Company, Inc.
2/1/95 5.85 15,000,000 15,000,000
Bayerische Vereinsbank A.G.
4/12/95 5.70 20,000,000 19,784,167
Caisse Nationale des Telecommunications
3/6/95 6.33 9,000,000 8,948,603
Canadian Wheat Board
2/2/95 6.00 4,800,000 4,799,200
2/10/95 5.23 15,000,000 14,980,875
4/25/95 5.86 5,000,000 4,934,407
Commerzbank U.S. Finance, Inc.
2/7/95 5.62 10,000,000 9,990,657
2/7/95 6.01 14,500,000 14,485,500
2/14/95 5.72 30,000,000 29,938,250
2/16/95 5.24 5,000,000 4,989,375
Deutsche Bank, A.G.
5/1/95 5.92 10,000,000 9,857,847
5/1/95 6.02 5,000,000 4,927,564
Dresdner U.S. Finance Inc.
2/17/95 5.89 5,000,000 4,987,089
Eiger Capital Corp.
2/9/95 5.78 4,815,000 4,808,848
Exxon Imperial U.S., Inc.
2/6/95 5.62 38,730,000 38,699,877
Ford Motor Credit Corp.
2/6/95 6.19 25,000,000 24,978,750
Ford Motor Credit, PLC
2/7/95 5.63 15,000,000 14,985,975
Gaz de France
2/15/95 5.67 20,000,000 19,956,056
General Electric Capital Corp.
2/1/95 5.91(a) 40,000,000 40,000,000
ANNUALIZED ANNUALIZED
YIELD AT YIELD AT
DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE
DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1)
Commercial Paper - CONTINUED
Hewlett-Packard Co.
2/21/95 5.18% $ 7,750,000 $ 7,728,257
2/27/95 5.20 20,000,000 19,926,767
ITT Hartford Group, Inc.
2/13/95 5.73 21,500,000 21,459,150
International Nederlanden U.S. Funding Corp.
2/9/95 6.01 11,547,000 11,531,604
Matterhorn Capital Corp. (LOC Union Bank of Switzerland)
2/7/95 5.78 36,124,000 36,089,381
2/17/95 5.88 16,751,000 16,707,447
Morgan Stanley Group, Inc.
2/13/95 6.26 35,000,000 34,927,783
Nestle Capital Corp.
2/16/95 5.68 67,800,000 67,640,388
New Center Asset Trust
2/6/95 6.18 30,000,000 29,974,500
New South Wales Treasury Corp.
2/6/95 6.17 20,000,000 19,983,028
2/6/95 6.19 50,000,000 49,957,500
Pfizer
2/7/95 5.62 25,000,000 24,976,667
Preferred Receivables Funding Corp.
2/13/95 5.67 7,125,000 7,111,581
2/15/95 5.68 25,100,000 25,044,850
Principal Mutual Life Insurance Co.
2/13/95 5.67 10,000,000 9,981,167
Toronto Dominion Holdings USA, Inc.
3/1/95 5.20 5,000,000 4,980,283
3/1/95 5.21 10,000,000 9,960,489
5/2/95 6.03 5,000,000 4,926,750
UBS Finance (DE), Inc.
2/1/95 5.90 45,000,000 45,000,000
U.S. West Communications
2/7/95 6.01 3,700,000 3,696,300
2/15/95 5.80 16,200,000 16,163,586
2/16/95 5.80 20,000,000 19,951,917
Westdeutsche Landesbank
2/17/95 5.78 25,000,000 24,936,111
TOTAL COMMERCIAL PAPER 971,553,301
Federal Agencies - 7.9%
FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 0.7%
2/21/95 5.39% $ 15,000,000 $ 14,956,083
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 0.7%
3/27/95 5.55 5,000,000 4,959,500
5/22/95 6.17 10,000,000 9,817,278
14,776,778
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 6.5%
2/8/95 5.61 35,000,000 34,961,889
3/2/95 5.48 26,900,000 26,783,635
3/9/95 5.19 25,000,000 24,873,500
3/22/95 5.55 25,000,000 24,816,250
5/17/95 6.10 10,000,000 9,827,333
5/17/95 6.14 10,000,000 9,826,163
131,088,770
TOTAL FEDERAL AGENCIES 160,821,631
U.S. Treasury Obligations - 1.5%
U.S. Treasury Bills
2/9/95 3.83 30,000,000 29,975,433
Bank Notes - 1.5%
Fifth Third Bank - Cincinnati
2/15/95 6.25 5,000,000 4,999,156
NBD Bank, N.A.
2/6/95 5.78 15,000,000 15,000,056
4/7/95 5.80 10,000,000 10,000,000
TOTAL BANK NOTES 29,999,212
Medium-Term Notes (a) - 0.5%
Beneficial Corp.
3/31/95 6.15 10,000,000 10,000,000
Short-Term Notes (a) (b) - 2.7%
CSA Funding - A
2/7/95 6.30 10,000,000 10,000,000
CSA Funding - B
2/7/95 6.30 22,000,000 22,000,000
CSA Funding - C
2/7/95 6.30 23,000,000 23,000,000
TOTAL SHORT-TERM NOTES 55,000,000
ANNUALIZED
YIELD AT
DUE TIME OF PRINCIPAL VALUE MATURITY VALUE
DATE PURCHASE AMOUNT (NOTE 1) AMOUNT (NOTE 1)
Time Deposits - 12.7%
Bank of Tokyo
2/2/95 5.56% $ 65,000,000 $ 65,000,000
Canadian Imperial Bank of Commerce
2/1/95 5.88 50,000,000 50,000,000
Dai-Ichi Kangyo Bank, Ltd.
2/2/95 5.56 10,000,000 10,000,000
Mitsubishi Bank, Ltd.
2/6/95 6.00 17,000,000 17,000,000
Norddeutsche Landesbank
2/2/95 5.56 50,000,000 50,000,000
Westdeutsche Landesbank
2/1/95 5.88 65,000,000 65,000,000
TOTAL TIME DEPOSITS 257,000,000
Municipal Securities (a) - 1.9%
Illinois Student Assistance Commission
2/7/95 6.01 10,000,000 10,000,000
New Orleans Aviation Board (MBIA Insured)
2/7/95 6.09 9,300,000 9,300,000
New York General Obligation
2/17/95 5.93 20,000,000 20,000,000
TOTAL MUNICIPAL SECURITIES 39,300,000
Repurchase Agreements - 3.5%
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/95 due 2/1/95
At 5.82% $ 71,387,540 $ 71,376,000
TOTAL INVESTMENTS - 100% $ 2,029,114,054
Total Cost for Income Tax Purposes - $2,029,114,054
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, 1994, the fund had a capital loss carryforward of approximately
$190,000 of which $30,000, $35,000 and $125,000 will expire on July 31,
2000, 2001 and 2002 respectively.
MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
<S> <C> <C>
January 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value (including repurchase agreements of $71,376,000) - See accompanying $ 2,029,114,054
schedule
Cash 52,075
Interest receivable 3,947,938
Receivable from investment adviser for expense 372,159
reductions
TOTAL ASSETS 2,033,486,226
LIABILITIES
Payable for investments $ 10,000,000
purchased
Share transactions in process 5,395,840
Dividends payable 532,843
Accrued management fee 848,161
Other payables and accrued expenses 685,742
TOTAL LIABILITIES 17,462,586
NET ASSETS $ 2,016,023,640
Net Assets consist of:
Paid in capital $ 2,016,911,551
Accumulated net realized gain (loss) on investments (887,911)
NET ASSETS, for 2,016,911,551 shares outstanding $ 2,016,023,640
NET ASSET VALUE, offering price and redemption price per share ($2,016,023,640 (divided by) 2,016,911,551 $1.00
shares)
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended January 31, 1995 (Unaudited)
INTEREST INCOME $ 47,050,652
EXPENSES
Management fee $ 4,409,174
Transfer agent fees 2,809,224
Accounting fees and expenses 90,593
Non-interested trustees' compensation 19,887
Custodian fees and expenses 53,717
Registration fees 78,416
Audit 9,560
Legal 15,621
Miscellaneous 12,864
Total expenses before 7,499,056
reductions
Expense reductions (1,767,130) 5,731,926
NET INTEREST INCOME 41,318,726
NET REALIZED GAIN (LOSS) ON (698,016)
INVESTMENTS
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 40,620,710
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 41,318,726 $ 44,783,808
Net interest income
Net realized gain (loss) (698,016) (124,844)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 40,620,710 44,658,964
Dividends to shareholders from net interest income (41,318,726) (44,783,808)
Share transactions at net asset value of $1.00 per share 4,728,223,133 9,151,729,228
Proceeds from sales of shares
Reinvestment of dividends from net interest income 37,260,596 37,385,748
Cost of shares redeemed (4,273,630,276) (9,115,524,819)
Net increase (decrease) in net assets and shares resulting from share transactions 491,853,453 73,590,157
TOTAL INCREASE (DECREASE) IN NET ASSETS 491,155,437 73,465,313
NET ASSETS
Beginning of period 1,524,868,203 1,451,402,890
End of period $ 2,016,023,640 $ 1,524,868,203
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31,
ENDED
JANUARY 31, 1995
(UNAUDITED) 1994 1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value, beginning of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .023 .029 .028 .041 .067 .080
Net interest income
Less Distributions (.023) (.029) (.028) (.041) (.067) (.080)
From net interest income
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 2.35% 2.98% 2.82% 4.21% 6.90% 8.34%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000
omitted) $ 2,016,024 $ 1,524,868 $ 1,451,403 $ 1,531,364 $ 1,714,108 $ 1,349,670
Ratio of expenses to average
net assets .65%A .65% .61% .59% .60% .61%
Ratio of expenses to average net
assets .85%A .74% .61% .59% .60% .61%
before expense reductions
Ratio of net interest income to
average 4.69%A 2.96% 2.76% 4.19% 6.61% 7.99%
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
DAILY MONEY FUND: U.S. TREASURY PORTFOLIO
INVESTMENTS/JANUARY 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF
INVESTMENTS)
ANNUALIZED
YIELD AT
DUE TIME OF PRINCIPAL VALUE MATURITY VALUE
DATE PURCHASE AMOUNT (NOTE 1) AMOUNT (NOTE 1)
U.S. Treasury Obligations - 24.3%
U.S. TREASURY BILLS - 12.0%
3/2/95 5.06% $ 24,000,000 $ 23,904,702
5/4/95 5.68 36,000,000 35,492,160
7/13/95 6.63 77,000,000 74,777,203
7/27/95 6.40 44,000,000 42,666,311
8/24/95 5.48 59,000,000 57,261,467
234,101,843
U.S. TREASURY NOTES - 12.3%
2/15/95 5.29 32,000,000 32,027,375
2/15/95 5.31 20,000,000 20,016,961
2/28/95 5.03 18,000,000 17,984,332
4/30/95 5.54 55,000,000 54,762,434
5/15/95 5.66 23,000,000 23,001,446
5/15/95 6.23 24,000,000 23,972,915
5/15/95 6.33 23,000,000 22,967,611
5/15/95 6.45 23,000,000 23,125,713
5/15/95 6.46 22,000,000 21,959,874
239,818,661
TOTAL U.S. TREASURY OBLIGATIONS 473,920,504
Repurchase Agreements - 75.7%
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/95 due 2/1/95:
At 5.80% $ 1,419,228,734 $ 1,419,000,000
At 5.82% 58,415,443 58,406,000
TOTAL REPURCHASE AGREEMENTS 1,477,406,000
TOTAL INVESTMENTS - 100% $ 1,951,326,504
Total Cost for Income Tax Purposes - $1,951,326,504
INCOME TAX INFORMATION:
At July 31, 1994, the fund had a capital loss carryforward of approximately
$505,000 of which $44,000 and $461,000 will expire on July 31, 2001 and
2002, respectively.
U.S. TREASURY PORTFOLIO
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
<S> <C> <C>
January 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value (including repurchase agreements of $1,477,406,000) - See accompanying $ 1,951,326,504
schedule
Interest receivable 4,529,976
Receivable from investment adviser for expense 6,081
reductions
TOTAL ASSETS 1,955,862,561
LIABILITIES
Payable to custodian bank $ 9,633
Share transactions in process 8,333,543
Dividends payable 4,203,398
Accrued management fee 820,207
Other payables and accrued expenses 311,331
TOTAL LIABILITIES 13,678,112
NET ASSETS $ 1,942,184,449
Net Assets consist of:
Paid in capital $ 1,942,610,523
Accumulated net realized gain (loss) on investments (426,074)
NET ASSETS $ 1,942,184,449
INITIAL CLASS: $1.00
NET ASSET VALUE, offering price and redemption price per share ($1,933,787,011 (divided by) 1,934,211,243
shares)
CLASS B: $1.00
NET ASSET VALUE, offering price and redemption price per share ($8,397,438 (divided by) 8,399,280
shares)
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended January 31, 1995 (Unaudited)
INTEREST INCOME $ 50,183,179
EXPENSES
Management fee $ 4,959,198
Transfer agent fees 770,734
Initial Class
Class B 23,580
Distribution fees - Class B 18,062
Accounting fees and expenses 98,736
Non-interested trustees' compensation 36,202
Custodian fees and expenses 46,392
Registration fees - Initial Class 117,755
Registration fees - Class B 8,505
Audit 17,858
Legal 14,918
Miscellaneous 18,464
Total expenses before 6,130,404
reductions
Expense reductions - (27,832) 6,102,572
Class B
NET INTEREST INCOME 44,080,607
NET REALIZED GAIN (LOSS) ON 28,931
INVESTMENTS
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 44,109,538
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 44,080,607 $ 75,067,061
Net interest income
Net realized gain (loss) 28,931 (460,852)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 44,109,538 74,606,209
Distributions to shareholders from:
Net interest income
Initial Class (43,974,373) (75,066,532)
Class B (106,234) (529)
Share transactions - net increase (decrease) at net asset value of $1.00 per share (83,621,702) (922,932,430)
TOTAL INCREASE (DECREASE) IN NET ASSETS (83,592,771) (923,393,282)
NET ASSETS
Beginning of period 2,025,777,220 2,949,170,502
End of period $ 1,942,184,449 $ 2,025,777,220
</TABLE>
FINANCIAL HIGHLIGHTS - Initial Class
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31,
ENDED
January 31, 1995
(UNAUDITED) 1994 1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations
Net interest income .022 .029 .027 .042 .065 .079
Less Distributions
From net interest income (.022) (.029) (.027) (.042) (.065) (.079)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 2.26% 2.89 2.78 4.25 6.69 8.24
% % % % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted)$ 1,933,787 $ 2,025,149 $ 2,949,171 $ 3,093,714 $ 1,701,704 $ 1,177,290
Ratio of expenses to average net assets.61%A .60 .57 .59 .59 .59
% % % % %
Ratio of net interest income to
average net assets 4.45%A 2.81 2.73 4.14 6.42 7.91
% % % % %
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
FINANCIAL HIGHLIGHTS - Class B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
SIX MONTHS JULY 1, 1994
ENDED (COMMENCEMENT
JANUARY 31, 1995 OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1994
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000
Income from Investment Operations
Net interest income .019 .002
Less Distributions
From net interest income (.019) (.002)
Net asset value, end of period $ 1.000 $ 1.000
TOTAL RETURN B 1.89% 0.25%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 8,397 $ 628
Ratio of expenses to average net assets 1.35%A 1.35%A
Ratio of expenses to average net assets before expense reductions 2.38%A 2.52%A
Ratio of net interest income to average net assets 3.92%A 2.06%A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED AND
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JANUARY 31, 1995 (UNAUDITED)
5. 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 to earnings, assets and voting
privileges except that each class bears different distribution and transfer
agent expenses and certain registration fees. Each class has exclusive
voting rights with respect to its distribution plans. The Class B shares
are offered by exchange only, to investors in Class B shares of certain
Fidelity Advisor Funds. Class B commenced operations on July 1, 1994.
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 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.
ALLOCATED EARNINGS AND EXPENSES. Interest income, expenses (other than
expenses incurred under each class' Distribution and Service Plans,
Transfer Agent Agreements and certain registration fees) and realized and
unrealized gains or losses on investments are allocated to each class of
shares based upon their relative net assets.
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.
6. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The funds' investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of 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.
RESTRICTED SECURITIES. The Money Market fund is permitted to invest in
privately placed restricted securities. These securities 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 2.7% of net assets.
7. 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 repurchase agreements were
dated January 31, 1995 and due February 1, 1995. The maturity values of the
joint trading account investments were $1,419,228,734 at 5.80% and
$58,415,443 at 5.82%.
3. JOINT TRADING ACCOUNT - CONTINUED
The investments in repurchase agreements through the joint trading account
are summarized as follows:
MAXIMUM
AMOUNT AGGREGATE AGGREGATE AGGREGATE
NO. OF WITH ONE PRINCIPAL MATURITY MARKET COUPON MATURITY
DEALERS DEALER AMOUNT OF AMOUNT OF VALUE OF RATES OF DATES OF
OR BANKS OR BANK AGREEMENTS AGREEMENTS COLLATERAL COLLATERAL COLLATERAL
At 5.80% 11 22.9% $ 4,611,000,000 $ 4,611,743,265 $ 4,706,138,025 0%-12.50%
2/2/95-11/15/24
At 5.82% 5 34.5% $ 580,000,000 $ 580,093,778 $ 591,966,560 0%-12.50%
2/2/95-11/15/24
8. 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) adopted on behalf of shares of the Money Market fund and
the Initial shares of 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
$1,952,575 and $3,163,191 for the Money Market fund and the Initial shares
of the 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 the U.S. Treasury fund's Class B
shares (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 is net of payments made by FMR to
FDC of up to .38%, and .25% which represents a shareholder service fee) of
the average net assets of the Class B shares. For the period, the fund and
FMR paid FDC $18,062 and $8,932, respectively, under the Class B Plan, of
which $6,692 was paid to investment professionals for providing shareholder
support services to investors.
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 $2,457 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 FEE. Fidelity Investments Institutional Operations Company
(FIIOC), an affiliate of FMR, is the funds' transfer, dividend disbursing
and shareholder servicing agent. FIIOC receives fees based on the type,
size, number of accounts and the number of transactions made by
shareholders. FIIOC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEE. Fidelity Service Co., 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.
9. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the Money Market, U.S. Treasury Initial
Class and U.S. Treasury Class B funds' operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses) above an
annual rate of .65%, .65% and 1.35%, respectively, of average net assets.
For the period, the reimbursement reduced the expenses of the Money Market
and U.S. Treasury Class B funds by $1,767,130 and $29,994, respectively.
10. 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:
INITIAL CLASS SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994
<TABLE>
<CAPTION>
<S> <C> <C>
Proceeds from sales of shares $ 5,231,749,343 $ 13,798,065,709
Reinvestment of dividends from net interest income 21,688,781 41,469,354
Cost of shares redeemed (5,344,830,909) (14,763,095,690)
Net increase (decrease) in net assets and shares resulting from share transactions $ (91,392,785) $ (923,560,627)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
CLASS B SIX MONTHS JULY 1, 1994
ENDED (COMMENCEMENT
JANUARY 31, 1995 OF OPERATIONS) TO
(UNAUDITED) JULY 31,
1994
Proceeds from sales of shares $ 10,695,734 $ 627,668
Reinvestment of dividends from net interest income 100,028 529
Cost of shares redeemed (3,024,679) -
Net increase (decrease) in net assets and shares resulting from share transactions $ 7,771,083 $ 628,197
</TABLE>
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.
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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
Stephen P. Jonas, TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
David H. Potel, ASSISTANT SECRETARY
TRUSTEES
J. Gary Burkhead
Ralph F. Cox
Phyllis Burke Davis
Richard J. Flynn
Edward C. Johnson 3d
E. Bradley Jones
Donald J. Kirk
Peter S. Lynch
Edward H. Malone
Marvin L. Mann
Gerald C. McDonough
Thomas R. Williams
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND
SHAREHOLDER
SERVICING AGENT
Fidelity Investments Institutional
Operations Company
Boston, MA
CUSTODIAN
Morgan Guaranty Trust Company of New York
New York, NY DMF-3-95S
CAPITAL RESERVES
SEMIANNUAL REPORT
JANUARY 31, 1995
CAPITAL RESERVES: MONEY MARKET PORTFOLIO
INVESTMENTS/JANUARY 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF
INVESTMENTS)
ANNUALIZED ANNUALIZED
YIELD AT YIELD AT
DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE
DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1)
Bankers' Acceptances - 6.4%
DOMESTIC BANKERS' ACCEPTANCES - 3.3%
Chemical Bank
3/6/95 5.22% $ 7,125,492 $ 7,092,246
CoreStates Bank of Delaware, N.A.
5/12/95 6.68 5,000,000 4,909,722
Morgan Bank (Delaware)
2/7/95 6.10 5,000,000 4,994,958
Trust Company Bank of Georgia
2/6/95 5.76 8,000,000 7,993,622
24,990,548
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 3.1%
Barclays Bank, PLC
3/13/95 5.35 5,000,000 4,971,056
Dai-Ichi Kangyo Bank, Ltd.
2/6/95 6.26 5,000,000 4,995,694
Mitsubishi Bank, Ltd.
2/6/95 5.76 2,650,000 2,647,909
2/13/95 5.77 2,350,000 2,345,551
Sanwa Bank, Ltd.
2/6/95 5.95 1,600,000 1,598,680
Societe Generale
2/1/95 5.63 2,646,700 2,646,700
2/3/95 5.63 128,015 127,975
2/6/95 5.64 2,461,098 2,459,177
2/8/95 5.64 659,606 658,885
2/9/95 5.64 840,832 839,782
23,291,409
TOTAL BANKERS' ACCEPTANCES 48,281,957
Certificates of Deposit - 14.3%
DOMESTIC CERTIFICATES OF DEPOSIT - 1.9%
Citibank, N.A.
2/6/95 5.80 10,000,000 10,000,000
Old Kent Bank & Trust Co.
2/21/95 5.25 4,000,000 4,000,000
14,000,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 9.9%
Canadian Imperial Bank of Commerce
2/9/95 5.75 10,000,000 10,000,000
Fuji Bank, Ltd.
2/10/95 5.79 5,000,000 5,000,000
3/1/95 6.06 5,000,000 5,000,000
Industrial Bank of Japan, Ltd.
2/10/95 5.75 5,000,000 5,000,000
National Westminster Bank, PLC
3/3/95 6.13% $ 5,000,000 $ 5,000,161
Sakura Bank, Ltd.
2/27/95 6.00 5,000,000 5,000,000
Sanwa Bank, Ltd.
2/6/95 5.90 8,000,000 8,000,022
2/27/95 6.02 5,000,000 4,999,785
Societe Generale
2/6/95 5.75 5,000,000 5,000,000
2/13/95 5.62 1,000,000 999,863
2/13/95 5.75 1,000,000 999,801
3/17/95 5.93 5,000,000 5,000,000
4/5/95 5.80 5,000,000 5,000,000
Sumitomo Bank, Ltd.
2/17/95 5.71 5,000,000 5,000,000
Swiss Bank Corp.
3/28/95 5.63 5,000,000 5,000,000
74,999,632
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 1.3%
Bankers Trust Co.
4/12/95 5.70 5,000,000 5,000,000
4/13/95 5.74 5,000,000 5,000,000
10,000,000
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 1.2%
Barclays Bank, PLC
4/28/95 5.87 5,000,000 5,000,000
Dresdner Bank, A.G.
2/7/95 5.72 4,000,000 3,999,887
8,999,887
TOTAL CERTIFICATES OF DEPOSITS 107,999,519
Commercial Paper - 46.9%
A.H. Robins Company, Incorporated
2/8/95 5.77 3,000,000 2,996,646
American Express Credit Corp.
2/9/95 5.75 6,000,000 5,992,373
American Home Food Products Corp.
2/7/95 6.00 5,000,000 4,995,067
2/21/95 6.04 5,000,000 4,983,472
B.B.V. Finance (Delaware), Inc.
3/15/95 6.24 5,000,000 4,964,125
BHF Finance (Delaware), Inc.
2/10/95 5.75 5,000,000 4,992,850
Bank of New York Company, Inc.
2/1/95 5.85 5,000,000 5,000,000
ANNUALIZED ANNUALIZED
YIELD AT YIELD AT
DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE
DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1)
Commercial Paper - CONTINUED
Bank of Scotland
4/25/95 5.87% $ 5,000,000 $ 4,934,292
Bankers Trust Corp.
2/7/95 5.88 5,000,000 4,995,167
Bayerische Vereinsbank A.G.
4/12/95 5.70 5,000,000 4,946,042
Bear Stearns Cos., Inc.
2/6/95 5.78 10,000,000 9,992,083
CIESCO, L.P.
2/6/95 5.87 15,000,000 14,987,833
CIT Group Holdings, Inc.
2/8/95 5.78 10,000,000 9,988,819
Chrysler Financial Corporation
2/13/95 6.29 5,000,000 4,989,633
Commerzbank U.S. Finance, Inc.
2/7/95 5.62 5,000,000 4,995,328
Cooper Industries, Inc.
2/3/95 6.05 5,000,000 4,998,319
Corestates Capital Corp.
2/15/95 5.83 (a) 5,000,000 5,000,000
Enterprise Funding Corp.
2/10/95 5.87 3,470,000 3,464,925
2/15/95 5.87 6,000,000 5,986,350
Ford Motor Credit Corp.
2/16/95 5.93 1,000,000 997,542
General Electric Capital Corp.
2/1/95 5.91 (a) 5,000,000 5,000,000
2/10/95 5.24 5,000,000 4,993,625
2/10/95 5.57 5,000,000 4,993,163
4/12/95 5.74 5,000,000 4,945,750
General Motors Acceptance Corp.
2/6/95 6.27 4,000,000 3,996,556
2/14/95 5.98 4,000,000 3,991,406
2/22/95 6.04 5,000,000 4,982,646
3/13/95 6.20 5,000,000 4,965,944
4/11/95 6.41 5,000,000 4,939,529
5/1/95 5.95 5,000,000 4,928,553
Generale Bank
3/27/95 5.66 10,000,000 9,917,500
4/13/95 5.75 5,000,000 4,944,876
Golden Peanut Co.
2/22/95 5.65 6,000,000 5,980,575
Goldman Sachs Group, L.P. (The)
2/1/95 6.09 5,000,000 5,000,000
Hanson Finance, PLC
2/6/95 5.73% $ 5,000,000 $ 4,996,076
2/16/95 6.10 3,000,000 2,992,450
Household Finance Corp.
2/27/95 6.05 11,000,000 10,952,135
ITT Corp.
2/6/95 6.23 5,000,000 4,995,715
International Nederlanden U.S. Funding Corp.
2/2/95 5.21 2,000,000 1,999,717
Merrill Lynch & Co., Inc.
2/2/95 6.16 2,000,000 1,999,661
5/15/95 6.19 5,000,000 4,914,167
Morgan Stanley Group, Inc.
2/13/95 6.26 5,000,000 4,989,683
3/6/95 6.37 5,000,000 4,971,263
National Rural Util. Coop. Fin. Corp.
2/10/95 5.77 10,000,000 9,985,625
New Center Asset Trust
2/13/95 5.80 5,000,000 4,990,467
New South Wales Treasury Corp.
2/6/95 5.72 2,800,000 2,797,783
2/6/95 5.74 1,400,000 1,398,888
Norwest Corp.
2/10/95 5.73 7,000,000 6,990,025
Pfizer
2/7/95 5.62 8,000,000 7,992,533
Preferred Receivables Funding Corp.
2/9/95 5.76 2,725,000 2,721,518
Prospect Street Senior Portfolio LP
2/8/95 6.27 3,853,000 3,848,355
2/15/95 6.25 3,538,000 3,529,497
2/22/95 5.94 1,168,000 1,164,014
3/1/95 6.08 11,137,000 11,084,594
Seagram & Sons, Joseph E. (Inc.)
2/2/95 5.77 5,000,000 4,999,208
2/9/95 5.80 5,000,000 4,993,644
2/23/95 5.93 4,427,000 4,411,173
Sears Roebuck Acceptance Corp.
2/7/95 5.70 5,000,000 4,995,325
2/8/95 5.84 5,000,000 4,994,410
2/14/95 5.94 5,000,000 4,989,438
Siemens Corp.
4/25/95 5.86 5,000,000 4,934,292
4/25/95 5.90 3,000,000 2,960,298
ANNUALIZED ANNUALIZED
YIELD AT YIELD AT
DUE TIME OF PRINCIPAL VALUE DUE TIME OF PRINCIPAL VALUE
DATE PURCHASE AMOUNT (NOTE 1) DATE PURCHASE AMOUNT (NOTE 1)
Commercial Paper - CONTINUED
Smith Barney, Inc.
2/9/95 5.73% $ 5,000,000 $ 4,993,667
2/10/95 5.71 5,000,000 4,992,900
Textron, Inc.
2/15/95 5.83 5,000,000 4,988,722
Toronto Dominion Holdings USA, Inc.
5/2/95 5.90 5,000,000 4,928,375
U.S.L. Capital, Inc.
3/3/95 6.08 5,000,000 4,974,792
Union Pacific Corp.
2/6/95 6.31 5,000,000 4,995,667
TOTAL COMMERCIAL PAPER 354,247,066
Federal Agencies - 0.7%
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 0.7%
5/11/95 5.98 5,000,000 4,920,113
U.S. Treasury Obligations - 0.7%
U.S. Treasury Bills
4/6/95 5.15 5,000,000 4,955,556
Bank Notes - 7.9%
Bank of New York
2/1/95 6.23 (a) 5,000,000 4,999,537
Bank One - Delaware
2/1/95 6.22 (a) 5,000,000 5,000,000
Bank One - Milwaukee
2/1/95 5.95 (a) 10,000,000 9,999,178
Comerica Bank - Detroit
2/1/95 6.23 (a) 5,000,000 5,000,000
2/1/95 6.24 (a) 5,000,000 4,999,479
First of America Bank - Western Michigan
3/13/95 6.40 5,000,000 4,999,884
NBD Bank, N.A.
2/6/95 5.78 10,000,000 10,000,038
4/28/95 5.88 5,000,000 5,000,232
PNC Bank, N.A.
2/7/95 5.64 (a) 5,000,000 4,997,123
Society National Bank
2/1/95 6.24 (a) 5,000,000 4,999,473
TOTAL BANK NOTES 59,994,944
Master Notes (a) - 2.5%
J.P. Morgan Securities
2/1/95 6.14% $ 5,000,000 $ 5,000,000
2/1/95 6.17 10,000,000 10,000,000
Norwest Corp.
2/1/95 6.06 4,000,000 4,000,000
TOTAL MASTER NOTES 19,000,000
Medium-Term Notes (a) - 9.9%
Abbey National Treasury Services (c)
2/1/95 6.23 5,000,000 4,999,773
3/31/95 6.50 26,000,000 26,000,000
Beneficial Corp.
2/15/95 5.91 10,000,000 9,997,876
3/31/95 6.40 4,000,000 4,000,000
General Motors Acceptance Corp.
2/7/95 5.85 6,000,000 6,000,000
Goldman Sachs Group, L.P. (The) (c)
2/16/95 5.80 6,000,000 6,000,000
3/1/95 5.61 6,000,000 6,000,000
Norwest Corp.
3/15/95 6.46 7,000,000 7,000,000
PHH Corp.
2/1/95 6.19 5,000,000 5,000,000
TOTAL MEDIUM-TERM NOTES 74,997,649
Short-Term Notes (a) (b) - 2.5%
SMM Trust Company (1994-A)
3/17/95 6.37 18,000,000 18,000,000
SMM Trust Company (1994-D)
4/28/95 6.36 1,000,000 1,000,000
TOTAL SHORT-TERM NOTES 19,000,000
Time Deposits - 2.7%
Fleet Bank of Massachusetts
2/2/95 5.63 10,000,000 10,000,000
Westdeutsche Landesbank
2/1/95 5.88 10,000,000 10,000,000
TOTAL TIME DEPOSITS 20,000,000
Municipal Securities (a) - 1.0%
New Orleans Aviation Board (MBIA Insured)
2/7/95 6.09 1,500,000 1,500,000
New York General Obligation
2/17/95 5.93 6,000,000 6,000,000
TOTAL MUNICIPAL SECURITIES 7,500,000
MATURITY VALUE
AMOUNT (NOTE 1)
Repurchase Agreements - 4.5%
With First Boston Corporation:
At 5.75%, dated 1/10/95 due 2/9/95
U.S. Government Obligations
(principal amount $10,480,635)
7% to 8%,
1/1/00 to 7/1/09 $ 10,047,917 $ 10,000,000
With Goldman Sachs & Co.:
At 5.82%, dated 1/23/95 due 2/15/95
U.S. Government Obligations
(principal amount $5,150,001)
6.356% to 10%,
11/1/21 to 4/1/23 5,018,592 5,000,000
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/95 due 2/1/95
At 5.82% 19,359,131 19,356,000
TOTAL REPURCHASE AGREEMENTS 34,356,000
TOTAL INVESTMENTS - 100% $ 755,252,804
Total Cost for Income Tax Purposes - $755,252,804
LEGEND:
(c) 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.
(d) 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-A) 3/18/94 $ 18,000,000
(1994-D) 10/28/94 $ 1,000,000
(e) 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 $42,999,773 or 5.7% of net
assets.
INCOME TAX INFORMATION:
At July 31, 1994, the fund had a capital loss carryforward of approximately
$157,000 of which $8,000 and $149,000 will expire on July 31, 2001 and
2002, respectively.
MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
<S> <C> <C>
January 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value (including repurchase agreements of $34,356,000) - See accompanying $ 755,252,804
schedule
Interest receivable 2,056,905
Receivable from investment adviser for expense 69,372
reductions
TOTAL ASSETS 757,379,081
LIABILITIES
Payable to custodian bank $ 135,978
Payable for investments 4,000,000
purchased
Share transactions in process 1,751,331
Dividends payable 244,057
Accrued management fee 308,569
Other payables and accrued expenses 369,231
TOTAL LIABILITIES 6,809,166
NET ASSETS $ 750,569,915
Net Assets consist of:
Paid in capital $ 750,719,820
Accumulated net realized gain (loss) on investments (149,905)
NET ASSETS, for 750,719,820 shares outstanding $ 750,569,915
NET ASSET VALUE, offering price and redemption price per share ($750,569,915 (divided by) 750,719,820 shares) $1.00
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended January 31, 1995 (Unaudited)
INTEREST INCOME $ 19,036,966
EXPENSES
Management fee $ 1,795,215
Transfer agent fees 647,270
Distribution fees 1,256,651
Accounting fees and expenses 51,715
Non-interested trustees' compensation 1,798
Custodian fees and expenses 26,798
Registration fees 124,494
Audit 7,894
Legal 6,917
Miscellaneous 5,235
Total expenses before 3,923,987
reductions
Expense reductions (369,461) 3,554,526
NET INTEREST INCOME 15,482,440
NET REALIZED GAIN (LOSS) ON (5,293)
INVESTMENTS
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,477,147
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 15,482,440 $ 17,953,417
Net interest income
Net realized gain (loss) (5,293) (148,964)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 15,477,147 17,804,453
Dividends to shareholders from net interest income (15,482,440) (17,953,417)
Share transactions at net asset value of $1.00 per share 2,150,794,351 3,974,385,280
Proceeds from sales of shares
Reinvestment of dividends from net interest income 14,105,473 16,240,483
Cost of shares redeemed (2,094,473,395) (3,911,825,770)
Net increase (decrease) in net assets and shares resulting from share transactions 70,426,429 78,799,993
TOTAL INCREASE (DECREASE) IN NET ASSETS 70,421,136 78,651,029
NET ASSETS
Beginning of period 680,148,779 601,497,750
End of period $ 750,569,915 $ 680,148,779
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, 1990
ENDED (COMMENCEMENT
JANUARY 31, 1995 OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1994 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .022 .027 .025 .041 .047
Net interest income
Less Distributions (.022) (.027) (.025) (.041) (.047)
From net interest income
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 2.19% 2.72% 2.57% 4.13% 4.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000
omitted) $ 750,570 $ 680,149 $ 601,498 $ 354,189 $ 108,991
Ratio of expenses to average net
assets .99%A .98% .95% .82% .83%A
Ratio of expenses to average net
assets before 1.09%A 1.12% 1.14% 1.17% 1.25%A
expense reductions
Ratio of net interest income to
average net assets 4.31%A 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 AND
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO
INVESTMENTS/JANUARY 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF
INVESTMENTS)
ANNUALIZED
YIELD AT
DUE TIME OF PRINCIPAL VALUE MATURITY VALUE
DATE PURCHASE AMOUNT (NOTE 1) AMOUNT (NOTE 1)
U.S. Treasury Obligations - 32.1%
U.S. TREASURY BILLS - 14.1%
5/4/95 5.68% $ 7,000,000 $ 6,901,253
7/13/95 6.63 10,000,000 9,711,325
7/27/95 6.40 2,000,000 1,939,378
8/24/95 5.48 10,000,000 9,705,050
28,257,006
U.S. TREASURY NOTES - 18.0%
2/15/95 5.30 7,000,000 7,005,961
2/15/95 5.31 4,000,000 4,003,392
2/28/95 5.03 3,000,000 2,997,389
4/30/95 5.54 9,000,000 8,961,126
5/15/95 5.66 4,000,000 4,000,251
5/15/95 6.23 2,000,000 1,997,743
5/15/95 6.33 3,000,000 2,995,775
5/15/95 6.45 2,000,000 2,010,932
5/15/95 6.46 2,000,000 1,996,352
35,968,921
TOTAL U.S. TREASURY OBLIGATIONS 64,225,927
Repurchase Agreements - 67.9%
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/95, due 2/1/95
At 5.80% $ 111,017,892 $ 111,000,000
At 5.82% 24,766,004 24,762,000
TOTAL REPURCHASE AGREEMENTS 135,762,000
TOTAL INVESTMENTS - 100% $ 199,987,927
Total Cost for Income Tax Purposes - $199,987,927
INCOME TAX INFORMATION:
At July 31, 1994, the fund had a capital loss carryforward of approximately
$41,000 of which $6,000 and $35,000 will expire on July 31, 2001 and 2002,
respectively.
U.S. GOVERNMENT PORTFOLIO
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
<S> <C> <C>
January 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value (including repurchase agreements of $135,762,000) - See accompanying $ 199,987,927
schedule
Cash 6,014,196
Interest receivable 730,658
Receivable from investment adviser for expense 7,016
reductions
TOTAL ASSETS 206,739,797
LIABILITIES
Dividends payable $ 98,325
Accrued management fee 100,161
Other payables and accrued expenses 118,675
TOTAL LIABILITIES 317,161
NET ASSETS $ 206,422,636
Net Assets consist of:
Paid in capital $ 206,461,593
Accumulated net realized gain (loss) on investments (38,957)
NET ASSETS, for 206,461,593 shares outstanding $ 206,422,636
NET ASSET VALUE, offering price and redemption price per share ($206,422,636 (divided by) 206,461,593 shares) $1.00
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended January 31, 1995 (Unaudited)
INTEREST INCOME $ 8,086,479
EXPENSES
Management fee $ 807,314
Transfer agent fees 147,578
Distribution fees 565,118
Accounting fees and expenses 28,057
Non-interested trustees' compensation 3,785
Custodian fees and expenses 15,061
Registration fees 125,786
Audit 5,908
Legal 3,236
Miscellaneous 2,467
Total expenses before 1,704,310
reductions
Expense reductions (105,829) 1,598,481
NET INTEREST INCOME 6,487,998
NET REALIZED GAIN (LOSS) ON (497)
INVESTMENTS
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 6,487,501
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 6,487,998 $ 7,851,980
Net interest income
Net realized gain (loss) (497) (34,704)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 6,487,501 7,817,276
Dividends to shareholders from net interest income (6,487,998) (7,851,980)
Share transactions at net asset value of $1.00 per share 1,322,259,321 2,416,632,169
Proceeds from sales of shares
Reinvestment of dividends from net interest income 4,784,601 6,256,268
Cost of shares redeemed (1,426,881,490) (2,381,075,779)
Net increase (decrease) in net assets and shares resulting from share transactions (99,837,568) 41,812,658
TOTAL INCREASE (DECREASE) IN NET ASSETS (99,838,065) 41,777,954
NET ASSETS
Beginning of period 306,260,701 264,482,747
End of period $ 206,422,636 $ 306,260,701
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, 1990
ENDED (COMMENCEMENT
JANUARY 31, 1995 OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1994 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .020 .025 .024 .041 .046
Net interest income
Less Distributions (.020) (.025) (.024) (.041) (.046)
From net interest income
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 2.06% 2.52% 2.40% 4.15% 4.66%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted)$ 206,423 $ 306,261 $ 264,483 $ 308,542 $ 80,762
Ratio of expenses to average net assets.99%A .98% .95% .65% .70%A
Ratio of expenses to average net
assets before 1.06%A 1.03% 1.07% 1.14% 1.27%A
expense reductions
Ratio of net interest income to average
net assets 4.02%A 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 AND
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENTS/JANUARY 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENTS)
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MUNICIPAL SECURITIES (a) - 100%
ALABAMA - 0.6%
Talladega Ind. Dev. Rev. (Wehadkee Yarn Mills Proj.) Series 1990, 3.80%,
LOC Trust Company Bank of Georgia, VRDN (b) $ 750,000 $ 750,000
ARIZONA - 6.6%
Cochise County Poll. Cont. Rev. Bonds (Arizona Elec. Pwr. Coop.) 3.80%,
tender 3/1/95
(CFC Guaranteed Nat'l. Rural Util. Coop) (b) 700,000 700,000
Mojave County Ind. Dev. Auth. Ind. Dev. Rev. Bonds (Citizen Utilities Co.)
Series 1993 E, 3.70%,
tender 2/10/95 (b) 2,360,000 2,360,000
Phoenix Civic Impt. Corp. Airport Rev. Bonds 8% 7/1/95 (b) 1,000,000
1,015,403
Pinal County Ind. Dev. Auth. Ind. Dev. Rev. (Sunbelt Refining Co. LP Proj.)
Series 1988, 3.85%,
LOC Bankers Trust Co., VRDN (b) 600,000 600,000
Yavapai County Ind. Dev. Auth. Ind. Dev. Bonds (Citizen Utilities Co.)
Series 1993, 3.70%, tender 2/10/95 (b) 3,000,000 3,000,000
7,675,403
CALIFORNIA - 6.0%
California Gen. Oblig. Adj. Rate RAN Series 1994-95 B, 3.71% 6/28/95
2,000,000 2,000,000
California Student Ed. Loan Mktg. Corp. Student Loan Rev. Bonds Series 1994
A, 4.35%, tender 6/1/95,
LOC Dresdner Bank (b) 500,000 500,000
California TRAN (Cash Reserve Prog. Auth.) Series A, 4.50% 7/5/95
2,000,000 2,006,092
Orange County Apt. Dev. Rev., VRDN:
(WLCO Partners) Series 1985 C, 4.90% LOC Tokai Bank Ltd. 1,500,000
1,500,000
(Niguel Summit I) Issue 1985 U, Series A, 4.50%, LOC Tokai Bank Ltd.
1,000,000 1,000,000
7,006,092
COLORADO - 2.1%
Fort Collins County Ind. Dev. Rev. (Phelps -Tointon Millwork Proj.) Series
1993, 4%,
LOC Bank One, Milwaukee, VRDN (b) 1,450,000 1,450,000
Wheat Ridge County Ind. Dev. Rev. (Adolph Coors Co. Proj.) Series 1993,
3.85%,
LOC Wachovia Bank Georgia, VRDN (b) 1,000,000 1,000,000
2,450,000
DISTRICT OF COLUMBIA - 0.6%
Dist. of Columbia Hsg. Fin. Auth. Multi-Family Hsg. Rev. Rfdg. (Mount
Vernon Plaza Apts.) Series 91, 3.95%,
LOC Bank One, VRDN (b) 650,000 650,000
FLORIDA - 7.3%
Broward County Ind. Dev. Auth. Rev. Rfdg. (Goldline Lab, Inc. Proj.) Series
1989 B, 3.80%,
LOC Barnett Bank, VRDN (b) 247,000 247,000
Dade County Hsg. Fin. Corp. Participating VRDN, Series 1991 A, 4.20%
(Liquidity Facility Bank One) (b) (c) 1,795,000 1,795,000
Dade County Ind. Dev. Rev. (Montenay-Dade Proj.) Series 1988, 3.80%, LOC
Banque Paribas, VRDN (b) 1,475,000 1,475,000
Dade County Multi-Family Hsg. Rev. (Biscayne View Apts. Proj.) Series 1993,
4.05%
(BPA Commonwealth Life Ins. Co.), VRDN (b) 1,475,000 1,475,000
Indian Trace Commty. Dev. Dist. Bonds (Broward County-Basin I Wtr. Mgmt.)
4.25%, tender 2/1/95,
LOC Tokai Bank Ltd. 1,600,000 1,600,000
Okeechobee County Solid Wst. Rev. (Chambers Waste Sys.) Series 1992, 3.90%,
LOC NationsBank, VRDN (b) 1,000,000 1,000,000
Palm Beach County Health Facs. Auth. Bonds, 4.50%, tender 4/27/95 (MBIA
Insured)
(Liquidity Facility Credit Suisse) 1,000,000 1,000,000
8,592,000
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MUNICIPAL SECURITIES (a) - CONTINUED
GEORGIA - 0.6%
Pierce County Ind. Dev. & Bldg. Auth. Rev. (American Egg Prods. Inc. Proj.)
Series 1989, 3.80%,
LOC Trust Company Bank, VRDN (b) $ 170,000 $ 170,000
Rockdale County Ind. Dev. Rev. (Takahashi Works USA) Series 1990, 3.80%,
LOC Sanwa Bank, VRDN (b) 500,000 500,000
670,000
ILLINOIS - 3.7%
Chicago O'Hare Int'l. Arpt. Rev. (Northwest Orient Airlines) 3.90%, LOC
Mitsubishi Bank, VRDN (b) 300,000 300,000
Illinois Dev. Fin. Auth. Ind. Dev. Rev., VRDN (b):
(Kindlon Partners Proj.) 3.85%, LOC Lasalle Bank 900,000 900,000
(MTI Corp. Proj.) Series 1989, 4%, LOC Industrial Bank of Japan
1,000,000 1,000,000
(R.S. Anderson Co. Proj.) 4.35%, LOC Comerica 200,000 200,000
Illinois Gen. Oblig. TRAN 4.75% 4/17/95 1,900,000 1,903,236
4,303,236
INDIANA - 1.3%
Indiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds Series 1994 C, 4.40%
7/3/95 (FGIC Insured) (b) 1,000,000 1,000,000
Shelbyville Ind. Econ. Dev. Rev. (Nippisun Indiana Corp. Proj.) 4.10%, LOC
Industrial Bank of Japan, VRDN (b) 500,000 500,000
1,500,000
KENTUCKY - 0.9%
Cynthiana Ind. Dev. Rev. (E.D. Bullard Co. Proj.) 3.90%, LOC NationsBank,
VRDN (b) 1,100,000 1,100,000
LOUISIANA - 2.6%
Calcaseiu 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., 4%, LOC Nat'l.
Westminster Bank, VRDN (b) 2,000,000 2,000,000
3,000,000
MAINE - 0.5%
Maine Fin. Auth. Econ. Dev. Rev. Series 1992 B, 4%, LOC Sumitomo Bank Ltd.,
VRDN (b) 640,000 640,000
MARYLAND - 0.8%
Maryland Commty. Dev. Administration Participating VRDN, Series PT-36,
3.80%
(Liquidity Facility Industrial Bank of Japan) (b) (c) 1,000,000
1,000,000
MASSACHUSETTS - 0.9%
Massachusetts Gen. Oblig. BAN Series 1994 A, 5% 6/15/95 1,000,000
1,002,863
MICHIGAN - 1.0%
Michigan Strategic Fund Ltd. Oblig. Rev. (Ultimate Hydroforming Inc. Proj.)
3.60%,
LOC National Bank of Detroit, VRDN (b) 1,200,000 1,200,000
MINNESOTA - 0.8%
Osseo Ind. School Dist. Participating VRDN, 3.85% (Liquidity Facility First
Bank National) (c) 1,000,000 1,000,000
MISSOURI - 0.9%
University of Missouri RAN Series 1994-95A, 4.50% 6/30/95 1,000,000
1,002,554
MONTANA - 0.9%
Montana TRAN Series 1994, 5% 6/30/95 1,000,000 1,003,977
NEVADA - 4.8%
Clark County Poll Cont. Rev. Bonds (Southern California Edison) (b):
Series 1987 A:
3.80%, tender 2/16/95 1,500,000 1,500,000
4%, tender 3/8/95 1,810,000 1,810,000
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MUNICIPAL SECURITIES (a) - CONTINUED
NEVADA - CONTINUED
Henderson Pub. Impt. Trust Multi-Family Hsg. Bonds (Victory Village Proj.)
5.90%, tender 3/27/95 (b) $ 1,290,000 $ 1,290,000
Washoe County Wtr. Fac. Rev. Bonds (Sierra Pacific Pwr. County) Series
1990, 3.80%, tender, 2/13/95,
LOC Union Bank Switzerland (b) 1,000,000 1,000,000
5,600,000
NEW MEXICO - 1.3%
New Mexico Ed. Assistance Fund Student Loan Rev. Series I, 3.75%, VRDN (b)
1,505,000 1,505,000
NEW YORK - 4.4%
New York Auth. Gen. Rev. BAN Series 1994, 4.19% 4/14/95 600,000 600,000
New York City:
TAN 4.25% 2/15/95 2,000,000 2,000,372
RAN Series A, 4.50% 4/12/95 2,500,000 2,502,807
5,103,179
NORTH CAROLINA - 0.8%
Piedmont Triad Arpt. Auth. Spl. Facs. Rev. (Triad Int'l. Maintenance Corp.
Proj.) Series 1989, 3.65%,
LOC Mellon Bank, VRDN (b) 900,000 900,000
OHIO - 1.3%
Dayton Spl. Facs. Rev. Rfdg. (Emery Air Freight Corp. Proj.) Series 1988 D,
4.25%, LOC Mellon Bank, VRDN (b) 1,500,000 1,500,000
PENNSYLVANIA - 9.8%
Bucks County Ind. Dev. Auth. Ind. Dev., VRDN (b):
(Associates Proj.) Series 1993, 4.15%, LOC Meridian Bank 1,510,000
1,510,000
(Double H Plastics Inc. Proj.) Series 1993, 4.15%, LOC Meridian Bank NA
2,445,000 2,445,000
Carbon County Ind. Dev. Auth. Resource Recovery Bonds (Panther Creek
Partners Proj.) 4%, tender 3/16/95,
LOC Nat'l. Westminster Bank (b) 1,060,000 1,060,000
Northumberland County Ind. Dev. Resource Recovery (Foster Wheeler Mt.
Carmel Inc.) Series 1987 B, 3.85%,
LOC Union Bank of Switzerland (b) 200,000 200,000
Pennsylvania Econ. Dev. Fing. Auth. Ind. Dev. Rev. (ASK Foods, Inc.) Series
A-1, 3.95%,
LOC Pittsburgh Nat'l. Bank, VRDN (b) 535,000 535,000
Pennsylvania Econ. Dev. Fin. Auth. Rev., VRDN (b):
(Kaminski Lumber Proj.) Series 1989 A6, 3.95%, LOC Pittsburgh Nat'l. Bank
875,000 875,000
(Port Erie Plastics Proj.) Series 1989 D9, 3.95%, LOC Pittsburgh Nat'l.
Bank 80,000 80,000
Pennsylvania Higher Ed. Assistance Agcy. Student Loan Rev. Series 1994 A,
3.65%,
LOC Student Loan Marketing Assoc., VRDN (b) 3,700,000 3,700,000
Philadelphia TRAN Series 1994-95D, 4.75% 6/15/95, LOC Morgan Guaranty Trust
Co. 1,000,000 1,003,188
11,408,188
SOUTH CAROLINA - 3.7%
South Carolina Jobs Econ. Dev. Auth. Rev., VRDN (b):
(Elec. City Printing Proj.) 3.85%, LOC South Carolina National Bank
3,300,000 3,300,000
(Wellman Inc. Proj.) Series 92, 4.30%, LOC Wachovia Bank 1,000,000
1,000,000
4,300,000
TENNESSEE - 5.1%
Cookeville Ind. Dev. Board Ind. Dev. Rev. (Delbar Products Inc. Proj.)
3.95%, LOC PNC Bank, VRDN (b) 1,300,000 1,300,000
Morristown Ind. Rev., VRDN (b):
(Lakeway Container Inc. Proj.) Series 1993, 4.20%, LOC First Tennessee
Bank, NA 2,500,000 2,500,000
(Tuff Torq Corp. Proj.) Series 1989, 4.20%, LOC Bank of Tokyo 1,450,000
1,450,000
Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990, 3.80%, LOC
Trust Company Bank of Georgia, VRDN (b) 685,000 685,000
5,935,000
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MUNICIPAL SECURITIES (a) - CONTINUED
TEXAS - 8.1%
Brazos River Harbor Navigation Dist. of Brazoria County Rev. Bonds (b):
(Dow Chemical):
Series 1988:
4%, tender 3/10/95 $ 1,730,000 $ 1,730,000
4.30%, tender 4/13/95 1,000,000 1,000,000
Series 1992, 3.80%, tender 2/16/95 1,000,000 1,000,000
Greater East Texas Higher Ed. Auth. Student Loan Rev., Series 1988 A,
3.80%, BPA Citibank (AMBAC Insured)
VRDN (b) 300,000 300,000
Gulf Coast Waste Disp. Auth. Poll. Cont. (Amoco Oil Co.) 4.30%, VRDN (b)
1,000,000 1,000,000
Houston Airport Sys. Series 1993 A, CP (b):
3.65% 2/7/95, LOC Canadian Imperial Bank 1,000,000 1,000,000
3.90% 2/10/95, LOC Canadian Imperial Bank 1,000,000 1,000,000
Texas Gen. Oblig. TRAN 5% 8/31/95 2,000,000 2,002,914
Travis County Hsg. Fin. Corp. Multi-Family Hsg. Rev., VRDN (b):
(Primecrest Ltd. Proj.):
Series 1990 A, 3.75%, LOC Algemene Bank 300,000 300,000
Series 1990 B, 3.75%, LOC Algemene Bank 200,000 200,000
9,532,914
UTAH - 1.4%
Intermountain Pwr. Agcy. Participating VRDN, Series BT-49, 4.125%
(Liquidity Facility Bankers Trust Co.) (c) 1,698,300 1,698,300
VIRGINIA - 6.1%
Halifax County Ind. Dev. Auth. Poll. Cont. Rev. Bonds (VA Elec. Pwr. Co.)
Series 1992,3.80%, tender 3/13/95 (b) 2,000,000 2,000,000
Mecklenburg County Ind. Auth. (American Bldgs. Co. Proj.) 4.05%, LOC
Lasalle Nat'l. Bank, VRDN (b) 1,700,000 1,700,000
Virginia Hsg. Dev. Auth. Mtg. Bonds Series 1993-I, 4.20%, tender 5/11/95
(b) 2,000,000 2,000,000
Virginia Hsg. Dev. Auth. Participating VRDN, Series PA-80B, 3.80%
(Liquidity Facility Merrill Lynch) (b) (c) 1,480,000 1,480,000
7,180,000
WASHINGTON - 6.4%
Algona Econ. Dev. Corp. Ind. Rev. (Aitchison Family Partnership) Series
1992, 3.90%,
LOC Wells Fargo Bank, VRDN (b) 2,740,000 2,740,000
Port Angeles Ind. Dev. Corp. (Daishowa America Proj.) Series 1991, 3.90%,
LOC Industrial Bank of Japan, VRDN (b) 200,000 200,000
Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev. (Weyerhaeuser Co.
Proj.) Series 1993, 4.08%, VRDN 2,000,000 2,000,000
Port of Grays Harbor Solid Waste Fac. Rev. (Pacific Veneer, Weyerhaeuser
Co.) Series 1993, 4.10%, VRDN, (b) 2,500,000 2,500,000
7,440,000
WEST VIRGINIA - 1.3%
Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.) Series 1988, 4.20%, LOC
Svenska Handelsbanken, VRDN (b) 1,500,000 1,500,000
WISCONSIN - 4.1%
Appleton Ind. Dev. Rev. (Pensar Corp. Proj.) Series 1993, 4%, LOC Bank One,
Milwaukee, VRDN (b) 1,080,000 1,080,000
Racine Ind. Dev. Rev. (Burlington Graphic Sys.) Series 1994, 4%, LOC Bank
One, Milwaukee, VRDN (b) 1,835,000 1,835,000
Wisconsin Gen. Oblig. BAN Series 1995 A, 5% 3/1/95 900,000 900,000
Wisconsin TRAN Series 1994, 4.50% 6/15/95 1,000,000 1,002,193
4,817,193
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MUNICIPAL SECURITIES (a) - CONTINUED
WYOMING - 3.3%
Gillette Poll. Cont. Rev. Bonds (Campbell Co.) Series 1988, 3.75%, tender
2/9/95,
LOC Deutsche Bank $ 2,500,000 $ 2,500,000
Sweetwater County Env. Impt. Rev. Bonds (Pacific Corp. Proj.) Series 1990
A, 4.20%, tender 2/21/95,
LOC Nat'l. Westminster Bank 1,400,000 1,400,000
3,900,000
TOTAL INVESTMENTS - 100% $ 116,865,899
Total Cost for Income Tax Purposes - $116,865,899
SECURITY TYPE ABBREVIATIONS:
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax & 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, 1994, the fund had a capital loss carryforward of approximately
$13,000 of which $200, $5,600, $2,200 and $5,000 will expire on July 31,
1999, 2000, 2001 and 2002, respectively.
MUNICIPAL MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
<S> <C> <C>
January 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value - See accompanying schedule $ 116,865,899
Cash 172,050
Interest receivable 898,300
TOTAL ASSETS 117,936,249
LIABILITIES
Share transactions in process $ 2,069,737
Dividends payable 3,665
Accrued management fee 49,242
Other payables and accrued expenses 75,125
TOTAL LIABILITIES 2,197,769
NET ASSETS $ 115,738,480
Net Assets consist of:
Paid in capital $ 115,749,242
Accumulated net realized gain (loss) on investments (10,762)
NET ASSETS, for 115,749,242 shares outstanding $ 115,738,480
NET ASSET VALUE, offering price and redemption price per share ($115,738,480 (divided by) 115,749,242 shares) $1.00
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended January 31, 1995 (Unaudited)
INTEREST INCOME $ 2,235,359
EXPENSES
Management fee $ 307,922
Transfer agent, accounting and custodian fees and expenses 36,864
Distribution fees 215,546
Non-interested trustees' compensation 747
Registration fees 123,704
Audit 10,536
Legal 2,510
Miscellaneous 8,801
Total expenses before 706,630
reductions
Expense reductions (96,946) 609,684
NET INTEREST INCOME 1,625,675
NET REALIZED GAIN (LOSS) ON 2,161
INVESTMENTS
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,627,836
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1995 JULY 31,
(UNAUDITED) 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 1,625,675 $ 2,358,367
Net interest income
Net realized gain (loss) 2,161 (4,997)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 1,627,836 2,353,370
Dividends to shareholders from net interest income (1,625,675) (2,358,367)
Share transactions at net asset value of $1.00 per share 202,906,601 502,816,505
Proceeds from sales of shares
Reinvestment of dividends from net interest income 1,565,702 2,273,420
Cost of shares redeemed (205,233,107) (504,861,716)
Net increase (decrease) in net assets and shares resulting from share transactions (760,804) 228,209
TOTAL INCREASE (DECREASE) IN NET ASSETS (758,643) 223,212
NET ASSETS
Beginning of period 116,497,123 116,273,911
End of period $ 115,738,480 $ 116,497,123
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, NOVEMBER 29, 1990
ENDED (COMMENCEMENT
JANUARY 31, 1995 OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1994 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
Income from Investment Operations .013 .018 .019 .031 .028
Net interest income
Less Distributions (.013) (.018) (.019) (.031) (.028)
From net interest income
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B 1.34% 1.80% 1.96% 3.14% 2.82%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000
omitted) $ 115,738 $ 116,497 $ 116,274 $ 68,497 $ 19,578
Ratio of expenses to average net
assets .99%A .98% .95% .95% .95%A
Ratio of expenses to average net
assets before 1.15%A 1.04% 1.23% 1.40% 2.63%A
expense reductions
Ratio of net interest income to
average net assets 2.64%A 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 AND
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN. SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED JANUARY 31, 1995 (UNAUDITED)
11. 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 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.
12. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The funds' investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the funds, along with other affiliated
entities of 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.
RESTRICTED SECURITIES. The Money Market and Municipal Money Market funds
are permitted to invest in privately placed restricted securities. These
securities 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 $19,000,000 or 2.5% of net
assets for the Money Market fund.
13. 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 repurchase agreements were
dated January 31, 1995 and due February 1,1995. The maturity values of the
joint trading account investments were $111,017,892 at 5.80% and
$24,766,004 at 5.82%, respectively. The investments in repurchase
agreements through the joint trading account are summarized as follows:
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING ACCOUNT
MAXIMUM
AMOUNT AGGREGATE AGGREGATE AGGREGATE
NO. OF WITH ONE PRINCIPAL MATURITY MARKET COUPON MATURITY
DEALERS DEALER AMOUNT OF AMOUNT OF VALUE OF RATES OF DATES OF
OR BANKS OR BANK AGREEMENTS AGREEMENTS COLLATERAL COLLATERAL COLLATERAL
5.80% 11 22.9% $4,611,000,000 $4,611,743,265 $4,706,138,025 0%-12.50%
2/2/95-11/15/24
5.82% 5 34.5% $580,000,000 $580,093,778 $591,966,560 0%-12.50%
2/2/95-11/15/24
14. 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 $875,147, $393,704 and $158,040 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. United Missouri Bank N.A. (the Bank) is the custodian and
transfer and shareholder servicing agent for the Municipal Money Market
fund. The Bank 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
fee contract pursuant to which FIIOC receives an annual fee and an
asset-based fee that vary according to account size. 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 $11,989 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. The Bank 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 $14,994 for the Municipal Money
Market fund.
15. 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 $369,461, $105,829 and
$96,946 for Money Market, U.S. Government and Municipal Money Market funds,
respectively.
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.
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
Robert Litterst, VICE PRESIDENT
Sarah Zenoble, VICE PRESIDENT
Thomas D. Maher, ASSISTANT VICE PRESIDENT
Arthur S. Loring, SECRETARY
Stephen P. Jonas, 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
United Missouri Bank, N.A.
Kansas City, MO
CUSTODIANS
Morgan Guaranty Trust Company of New York
New York, NY
United Missouri Bank, N.A.
Kansas City, MO CAPR-3-95S
