SUPPLEMENT TO THE
DAILY MONEY FUND:
U.S. TREASURY PORTFOLIO - CLASS B
PROSPECTUS
DATED DECEMBER 1, 1995
The following information replaces the fifth paragraph under the heading
"Other Expenses" in the "Breakdown of Expenses" section, beginning on page
10.
The Plan specifically recognizes that FMR may make payments from its
management fee revenue, past profits or other resources to reimburse FDC
for expenses incurred in connection with the distribution of Class B
shares. The Board of Trustees has authorized FMR to pay FDC a distribution
fee from its management fee revenue, past profits or other resources at an
annual rate of up to 0.40% of Class B's average net assets. For the fiscal
year ended July 31, 1995, FMR paid FDC monthly at an annual rate of 0.32%
of Class B's average net assets throughout the month.
SUPPLEMENT TO DAILY MONEY FUND
U.S.TREASURY PORTFOLIO: CLASS B
STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 1, 1995
The following information replaces the first footnote under the heading
"Historical Fund Results" in the "Performance" section, on page 7.
* Average annual and cumulative total returns include the effect of
applicable contingent deferred sales charges (CDSC) of 4% and 1 % for one
and five year periods shown.
Initial offering of Class B shares took place on July 1, 1994. Returns
prior to that date are those of Initial Class, the original class of the
fund and do not reflect Class B's 1.00% 12b-1 fee. Initial Class shares are
sold to eligible investors without a sales load, but with a 12b-1 fee of up
to 0.40%. If FMR had not reimbursed certain fund expenses during the
periods shown, the Class B's seven-day yield would have been 3.49% and
total returns would have been lower.
The following information replaces the third paragraph under the heading
"Historical Fund Results" in the "Performance" section, on page 8.
Explanatory Notes: With an initial investment of $10,000 made on July 31,
1985 the net amount invested in Class B was $10,000. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends for the period covered (their cash value at the time they were
reinvested), amounted to $17,397. If distributions had not been reinvested,
the amount of distributions earned from Class B over time would have been
smaller and the cash payments (dividends) for the period would have
amounted to $5,552. The fund did not distribute any capital gains during
the period. Neither tax consequences of different investments nor CDSC's
have not been factored into the above figures. Initial offering of Class B
shares took place on July 1, 1994. Returns prior to that date are those of
Initial Class, the original class of the fund and do not reflect Class B's
1.00% 12b-1 fee. Initial Class shares are sold to eligible investors
without a sales load, but with a 12b-1 fee of up to 0.40%. If FMR had not
reimbursed certain fund expenses during the periods shown, total returns
would have been lower.
SUPPLEMENT TO THE
DAILY MONEY FUND:
MONEY MARKET PORTFOLIO - INITIAL CLASS
U.S. TREASURY PORTFOLIO - INITIAL CLASS
PROSPECTUS
DATED DECEMBER 1, 1995
The following information replaces the third paragraph under the heading
"Other Expenses" in the "Breakdown of Expenses" section, on page 11.
Initial Class shares of each fund have adopted a DISTRIBUTION AND SERVICE
PLAN. Each Plan recognizes that FMR may use its resources, including
management fees, to pay expenses associated with the sale of Initial Class
shares. The Board of Trustees has authorized FMR to pay FDC a distribution
fee from its management fee revenues, past profits or other resources, at
an annual rate of up to 0.38% of Initial Class's average net assets for
payments made to investment professionals based on average aggregate
balances maintained, and, in special circumstances, up to 0.40% of Initial
Class's average net assets. This additional 0.02% will be paid to
investment professionals who maintain assets in excess of $600 million in a
single omnibus account.
For the fiscal year ended July 31, 1995, FMR paid FDC at an annual rate of
0.22% of Money Market Portfolio's Initial Class average net assets
throughout the month and 0.32% of U.S. Treasury Portfolio's Initial Class
average net assets throughout the month.
SUPPLEMENT TO DAILY MONEY FUND:
MONEY MARKET PORTFOLIO
U.S. TREASURY PORTFOLIO
INITIAL CLASS
STATEMENT OF ADDITIONAL INFORMATION
DATED DECEMBER 1, 1995
The following information replaces the sixth paragraph in the "Distribution
and Service Plan" section, on page 18.
Each Plan allows FDC to make payments to certain third parties with whom
FDC has entered into written Service Contracts and who assist or have
assisted in selling Initial Class shares of the fund or who provide
shareholder support services (investment professionals), for assistance in
selling Initial Class shares of the fund or for providing shareholder
support services. Each Plan authorizes FMR to make payments from its
management fee, its past profits or any other source available to it, to
reimburse FDC for these payments to investment professionals, provided that
such payments cannot exceed the amount of the management fee. The maximum
amount payable to investment professionals under each Plan, as determined
by the Board of Trustees, is currently at the annual rate of up to 0.40% of
the average net asset value of the applicable class for shareholder support
or distribution services.
