(registered trademark)
DAILY MONEY
FUND
SEMIANNUAL REPORT
JANUARY 31, 1996
DMF-SANN-0396
9596
CONTENTS
SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
DAILY MONEY FUND:
MONEY MARKET PORTFOLIO 3
U.S. TREASURY PORTFOLIO 11
NOTES TO THE FINANCIAL STATEMENTS 17
EACH FUND SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME AS IS
CONSISTENT WITH THE PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING IN
HIGH-QUALITY, SHORT-TERM MONEY MARKET SECURITIES. MONEY MARKET PORTFOLIO
INVESTS IN A BROAD RANGE OF MONEY MARKET SECURITIES. U.S. TREASURY
PORTFOLIO INVESTS IN MONEY MARKET SECURITIES ISSUED BY THE U.S. TREASURY
AND BACKED BY THE FULL FAITH AND CREDIT OF THE U.S. GOVERNMENT.
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, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL 1-800-843-3001 FOR A FREE PROSPECTUS. READ
IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
DAILY MONEY FUND: MONEY MARKET PORTFOLIO
INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 0.5%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
DOMESTIC BANKERS' ACCEPTANCES - 0.5%
Chemical Bank
3/26/96 5.88% $ 2,000,000 $ 1,982,840
Republic New York Corp.
3/11/96 5.71 5,500,000 5,466,931
3/12/96 5.70 4,000,000 3,975,378
TOTAL BANKERS' ACCEPTANCES 11,425,149
CERTIFICATES OF DEPOSIT - 37.0%
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 17.8%
Banque Nationale de Paris
3/15/96 5.49 10,000,000 10,000,118
Bayerische Landesbank Girozentrale
2/5/96 5.75 25,000,000 25,000,000
3/1/96 5.72 15,000,000 15,000,119
Bayerische Vereinsbank A.G.
5/28/96 5.30 6,000,000 6,000,000
Caisse Nationale de Credit Agricole
3/1/96 5.71 15,000,000 15,000,119
4/22/96 5.72 20,000,000 20,000,000
Canadian Imperial Bank of Commerce
3/11/96 5.50 15,000,000 15,000,000
3/12/96 5.50 15,000,000 15,000,000
Commerzbank, Germany
4/23/96 5.36 15,000,000 15,000,337
5/1/96 5.25 25,000,000 25,000,000
Deutsche Bank, A.G.
4/18/96 5.38 18,000,000 18,011,997
National Westminster Bank, PLC
3/12/96 5.50 20,000,000 20,000,000
Rabobank Nederland, N.V.
7/29/96 5.18 10,000,000 10,000,000
Societe Generale
2/13/96 5.63 25,000,000 25,000,640
3/5/96 5.50 30,000,000 30,000,000
3/25/96 5.40 40,000,000 40,000,000
4/4/96 5.47 15,000,000 15,000,000
Swiss Bank Corp.
2/29/96 5.73 40,000,000 40,000,000
3/7/96 5.70 20,000,000 20,000,000
3/25/96 5.75 19,000,000 19,000,000
6/3/96 5.40 29,000,000 29,000,000
7/29/96 5.20 15,000,000 15,000,000
Westdeutsche Landesbank
7/24/96 5.23 6,000,000 6,000,000
448,013,330
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.6%
Bank of Nova Scotia
2/14/96 5.74% $ 15,000,000 $ 15,000,054
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 3.6%
Chemical Bank
3/4/96 5.81 25,000,000 25,000,000
Harris Trust & Savings Bank, Chicago
3/4/96 5.73 15,000,000 15,000,000
Morgan Guaranty Trust Co.
2/7/96 5.78 50,000,000 50,000,162
90,000,162
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 15.0%
ABN-AMRO Bank
2/13/96 5.77 5,000,000 5,000,164
5/20/96 5.39 10,000,000 10,005,725
Abbey National Treasury Services
4/9/96 5.45 20,000,000 19,999,969
4/29/96 5.40 10,000,000 10,006,683
Abbey National (UK), PLC
3/11/96 5.68 20,000,000 20,000,485
3/13/96 5.75 13,000,000 13,000,000
4/23/96 5.75 15,000,000 15,000,000
Bank of Scotland
2/20/96 5.77 5,000,000 5,000,045
Bayerische Hypotheken-und Weschel
2/20/96 5.75 15,000,000 15,000,211
3/14/96 5.71 15,000,000 15,000,170
Bayerische Landesbank Girozentrale
6/4/96 5.25 10,000,000 10,000,338
Bayerische Vereinsbank A.G.
5/7/96 5.43 5,000,000 5,001,425
Commerzbank, Germany
6/27/96 5.25 15,000,000 15,000,000
Deutsche Bank, A.G.
2/1/96 5.75 5,000,000 5,000,000
3/1/96 5.72 15,000,000 14,999,989
3/11/96 5.70 10,000,000 10,000,000
4/24/96 5.73 20,000,000 20,000,000
Landesbank Hessen - Thuringen
3/14/96 5.71 10,000,000 10,000,057
7/18/96 5.18 12,000,000 12,000,547
Lloyds Bank, PLC
2/7/96 5.75 5,000,000 4,999,976
National Australia Bank
3/4/96 5.80 25,000,000 25,000,217
National Westminster Bank, PLC
5/22/96 5.30 4,000,000 4,000,233
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - CONTINUED
Royal Bank of Scotland, PLC
3/18/96 5.71% $ 15,000,000 $ 15,000,000
Westdeutsche Landesbank
4/9/96 5.37 20,000,000 20,001,787
4/9/96 5.42 50,000,000 50,000,170
5/1/96 5.26 10,000,000 10,000,494
5/1/96 5.32 20,000,000 20,001,052
379,019,737
TOTAL CERTIFICATES OF DEPOSITS 932,033,283
COMMERCIAL PAPER - 37.5%
American Telephone & Telegraph Co.
3/12/96 5.70 40,000,000 39,753,778
3/13/96 5.75 10,000,000 9,935,881
Asset Securitization Cooperative Corporation
4/4/96 5.43 11,000,000 10,896,627
Associates Corp. of North America
2/27/96 5.80 10,000,000 9,958,906
3/20/96 5.74 10,000,000 9,924,667
4/4/96 5.70 12,000,000 11,882,610
Bank of Scotland Treasury Services
4/18/96 5.75 13,500,000 13,338,300
Bear Stearns Cos., Inc.
3/1/96 5.52 10,000,000 9,955,936
Bradford & Bingley Building Society
4/12/96 5.45 20,000,000 19,787,789
CIESCO, L.P.
2/14/96 5.75 25,000,000 24,948,813
2/23/96 5.68 9,500,000 9,467,373
4/9/96 5.44 5,000,000 4,949,283
Cheltenham & Gloucester Building Society
4/4/96 5.44 20,000,000 19,811,700
Commerzbank U.S. Finance, Inc.
2/5/96 5.53 30,000,000 29,981,667
Corporate Asset Funding Co., Inc.
2/28/96 5.71 19,000,000 18,919,488
Dakota
2/21/96 5.59 5,000,000 4,984,583
2/22/96 5.61 5,000,000 4,983,754
Delaware Funding Corporation
2/2/96 5.83 12,098,000 12,096,058
Deutsche Bank, A.G.
4/2/96 5.46 15,000,000 14,863,004
Dresdner Bank, A.G.
4/3/96 5.47 15,000,000 14,860,758
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Eiger Capital Corp.
2/9/96 5.69% $ 10,000,000 $ 9,987,444
Electricite de France
2/23/96 5.75 20,000,000 19,930,944
7/16/96 5.23 25,000,000 24,411,507
Enterprise Funding Corp.
2/1/96 5.83 7,600,000 7,600,000
2/8/96 5.70 6,000,000 5,993,397
2/14/96 5.58 10,000,000 9,979,958
3/7/96 5.53 1,042,000 1,036,448
3/27/96 5.45 9,000,000 8,925,750
Ford Motor Credit Corp.
2/12/96 5.76 28,000,000 27,951,404
2/13/96 5.76 9,000,000 8,982,960
2/15/96 5.77 32,000,000 31,929,067
3/27/96 5.76 30,000,000 29,741,958
4/4/96 5.54 5,000,000 4,952,225
4/4/96 5.77 5,000,000 4,950,738
6/3/96 5.28 6,000,000 5,893,810
General Electric Capital Corp.
3/14/96 5.75 (a) 19,000,000 19,000,000
3/28/96 5.80 14,000,000 13,877,173
3/29/96 5.80 10,000,000 9,910,700
6/24/96 5.23 10,000,000 9,795,200
Goldman Sachs Group, L.P. (The)
3/18/96 5.75 20,000,000 19,855,611
Government of Canada
3/18/96 5.69 50,000,000 49,646,694
3/19/96 5.70 25,000,000 24,819,507
Hanson Finance (UK), PLC
4/22/96 5.37 25,000,000 24,701,875
Lilly (Eli) & Co.
4/8/96 5.54 10,000,000 9,898,569
Merrill Lynch & Co., Inc.
3/6/96 5.50 20,000,000 19,897,056
Morgan (J.P.) & Co.
2/20/96 5.74 15,000,000 14,955,271
Morgan Stanley Group, Inc.
3/28/96 5.58 25,000,000 24,786,111
National Rural Util. Coop. Fin. Corp.
4/12/96 5.56 5,000,000 4,946,060
Nationwide Building Society
4/18/96 5.40 30,000,000 29,657,992
New Center Asset Trust
2/1/96 6.00 50,000,000 50,000,000
2/28/96 5.82 10,000,000 9,956,875
Preferred Receivables Funding Corp.
2/28/96 5.71 18,775,000 18,695,441
Prudential Insurance Co. of America
3/8/96 5.48 41,000,000 40,776,960
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Royal Bank of Canada
3/14/96 5.70% $ 25,000,000 $ 24,838,271
Societe Generale North America, Inc.
3/7/96 5.52 5,000,000 4,973,410
7/24/96 5.22 3,000,000 2,926,268
Wool International
6/20/96 5.22 20,000,000 19,602,556
TOTAL COMMERCIAL PAPER 945,086,185
FEDERAL AGENCIES - 14.1%
FEDERAL FARM CREDIT BANK - AGENCY COUPONS (A) - 0.6%
2/1/96 5.76 14,000,000 13,999,502
FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 0.1%
4/23/96 5.27 2,360,000 2,332,047
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 4.8%
2/20/96 5.50 35,000,000 34,977,417
2/26/96 5.47 50,000,000 49,978,022
3/13/96 5.69 11,000,000 10,994,024
3/20/96 5.69 11,000,000 10,993,892
4/2/96 5.51 13,000,000 12,992,303
119,935,658
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 0.9%
6/25/96 5.13 24,000,000 23,514,733
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 0.0%
4/23/96 5.23 1,000,000 988,224
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 4.6%
2/16/96 5.56 40,000,000 39,986,249
3/20/96 5.69 33,000,000 32,977,447
4/17/96 5.45 19,000,000 18,985,873
5/1/96 5.34 25,000,000 24,976,748
116,926,317
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 1.7%
6/12/96 5.12 44,440,000 43,622,008
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 1.4%
4/16/96 5.60 35,000,000 35,000,000
TOTAL FEDERAL AGENCIES 356,318,489
BANK NOTES - 4.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Bank of America National Trust & Savings Assoc.
2/1/96 5.65% (a) $ 12,000,000 $ 11,995,906
Bayerische Landesbank Girozentrale
4/30/96 5.61 (a) 25,000,000 25,000,000
First Union National Bank
3/27/96 5.63 (a) 12,000,000 11,994,761
NBD Bank, N.A.
6/24/96 5.25 20,000,000 20,000,000
NationsBank of Texas
3/5/96 5.52 10,000,000 10,000,690
Seattle First National Bank
2/5/96 5.62 (a) 12,000,000 11,988,042
Society National Bank
4/15/96 5.41 10,000,000 10,022,561
Wachovia Bank of North Carolina, NA
2/3/96 5.81 (a) 10,000,000 10,000,628
TOTAL BANK NOTES 111,002,588
MEDIUM-TERM NOTES (A) - 2.7%
Exxon Shipping Co.
2/1/96 5.69 18,100,000 18,100,000
2/1/96 5.72 25,000,000 25,000,000
General Electric Capital Corp.
2/1/96 5.78 25,000,000 24,998,948
TOTAL MEDIUM-NOTES 68,098,948
SHORT-TERM NOTES (A) - 2.2%
CSA Funding - A
2/7/96 5.55 10,000,000 10,000,000
CSA Funding - B
2/7/96 5.55 22,000,000 22,000,000
CSA Funding - C
2/7/96 5.55 23,000,000 23,000,000
TOTAL SHORT-TERM NOTES 55,000,000
REPURCHASE AGREEMENTS - 1.6%
MATURITY
AMOUNT
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/96 due 2/1/96:
At 5.90% $ 40,085,571 40,079,000
TOTAL INVESTMENTS - 100% $ 2,519,043,642
Total Cost for Income Tax Purposes $ 2,519,043,642
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.
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.
DAILY MONEY FUND: MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1996 (UNAUDITED)
1.ASSETS 2. 3.
4.Investment in securities, at value (including repurchase agreements of $40,079,000) - 5. $ 2,519,043,642
See accompanying schedule
6.Cash 7. 1,153,910
8.Receivable for investments sold 9. 24,383,854
10.Interest receivable 11. 12,295,156
12. 13.TOTAL ASSETS 14. 2,556,876,562
15.LIABILITIES 16. 17.
18.Payable for investments purchased $ 109,382,681 19.
20.Distributions payable 652,433 21.
22.Accrued management fee 843,449 23.
24.Other payables and accrued expenses 644,667 25.
26. 27.TOTAL LIABILITIES 28. 111,523,230
29.30.NET ASSETS 31. $ 2,445,353,332
32.Net Assets consist of: 33. 34.
35.Paid in capital 36. $ 2,446,103,920
37.Accumulated net realized gain (loss) on investments 38. (750,588)
39.40.NET ASSETS, for 2,446,103,920 shares outstanding 41. $ 2,445,353,332
42.43.NET ASSET VALUE, offering price and redemption price per share 44. $1.00
($2,445,353,332 (divided by) 2,446,103,920 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
45.46.INTEREST INCOME 47. $ 68,493,047
48.EXPENSES 49. 50.
51.Management fee $ 5,832,802 52.
53.Transfer agent fees 2,936,360 54.
55.Accounting fees and expenses 112,034 56.
57.Non-interested trustees' compensation 1,013 58.
59.Custodian fees and expenses 50,624 60.
61.Registration fees 145,051 62.
63.Audit 7,502 64.
65.Legal 8,640 66.
67.Miscellaneous 3,847 68.
69. Total expenses before reductions 9,097,873 70.
71. Expense reductions (1,515,232) 7,582,641
72.73.NET INTEREST INCOME 74. 60,910,406
75.76.NET REALIZED GAIN (LOSS) ON INVESTMENTS 77. 23,043
78.79.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 80. $ 60,933,449
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1996 JULY 31, 1995
(UNAUDITED)
81.INCREASE (DECREASE) IN NET ASSETS
82.Operations $ 60,910,406 $ 94,283,195
Net interest income
83. Net realized gain (loss) 23,043 (583,736)
84. 85.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 60,933,449 93,699,459
86.Distributions to shareholders from net interest income (60,910,406) (94,283,195)
87.Share transactions at net asset value of $1.00 per share 6,258,962,825 9,812,791,289
Proceeds from sales of shares
88. Reinvestment of distributions from net interest income 56,364,553 85,047,974
89. Cost of shares redeemed (6,009,386,301) (9,282,734,518)
90.91. 305,941,077 615,104,745
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
92. 93.TOTAL INCREASE (DECREASE) IN NET ASSETS 305,964,120 614,521,009
94.NET ASSETS 95. 96.
97. Beginning of period 2,139,389,212 1,524,868,203
98. End of period $ 2,445,353,332 $ 2,139,389,212
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31,
ENDED
JANUARY 31, 1996
(UNAUDITED) 1995 1994 1993 1992 1991
99.SELECTED PER-SHARE DATA
100.Net asset value,
beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
101.Income from Investment
Operations .026 .050 .029 .028 .041 .067
Net interest income
102.Less Distributions (.026) (.050) (.029) (.028) (.041) (.067)
From net interest income
103.Net asset value, end of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
104.TOTAL RETURN B 2.66% 5.16% 2.98% 2.82% 4.21% 6.90%
105.RATIOS AND SUPPLEMENTAL DATA
106.Net assets, end of period $ 2,445,353 $ 2,139,389 $ 1,524,868 $ 1,451,403 $ 1,531,364 $ 1,714,108
(000 omitted)
107.Ratio of expenses to
average net .65%A, .65%C .65% .61% .59% .60%
assets C C
108.Ratio of net interest
income to 5.22%A 5.11% 2.96% 2.76% 4.19% 6.61%
average
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE
TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
DAILY MONEY FUND: U.S. TREASURY PORTFOLIO
INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
U.S. TREASURY NOTES - 28.5%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
2/15/96 5.83% $ 10,000,000 $ 10,006,693
2/15/96 5.84 7,000,000 7,004,645
2/15/96 5.88 4,000,000 3,997,903
2/15/96 6.18 31,000,000 30,980,592
2/15/96 6.21 45,000,000 44,971,830
2/29/96 5.60 10,000,000 9,991,410
4/15/96 5.51 21,000,000 21,148,942
4/15/96 5.59 25,000,000 25,173,236
4/30/96 5.18 6,000,000 6,033,412
4/30/96 5.58 19,000,000 19,082,201
4/30/96 5.59 67,000,000 67,286,682
4/30/96 5.65 40,000,000 39,971,091
5/15/96 5.15 85,000,000 85,503,689
5/15/96 5.18 45,000,000 44,871,460
5/15/96 5.20 77,000,000 77,445,445
5/15/96 5.43 30,000,000 30,140,993
6/30/96 5.16 20,000,000 20,211,245
TOTAL U.S. TREASURY NOTES 543,821,469
REPURCHASE AGREEMENTS - 71.5%
MATURITY
AMOUNT
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/96 due 2/1/96
(Notes 2 and 3):
At 5.90% $ 54,927,004 $ 54,918,000
At 5.91% 1,310,214,930 1,310,000,000
TOTAL REPURCHASE AGREEMENTS 1,364,918,000
TOTAL INVESTMENTS - 100% $ 1,908,739,469
Total Cost for Income Tax Purposes $ 1,908,739,469
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.
DAILY MONEY FUND: U.S. TREASURY PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1996 (UNAUDITED)
109.ASSETS 110. 111.
112.Investment in securities, at value (including repurchase agreements of $1,364,918,000) - 113. $ 1,908,739,469
See accompanying schedule
114.Cash 115. 7,773,165
116.Interest receivable 117. 9,968,564
118. 119.TOTAL ASSETS 120. 1,926,481,198
121.LIABILITIES 122. 123.
124.Distributions payable $ 2,988,635 125.
126.Accrued management fee 721,759 127.
128.Other payables and accrued expenses 449,505 129.
130. 131.TOTAL LIABILITIES 132. 4,159,899
133.134.NET ASSETS 135. $ 1,922,321,299
136.Net Assets consist of: 137. 138.
139.Paid in capital 140. $ 1,922,734,144
141.Accumulated net realized gain (loss) on investments 142. (412,845)
143.144.NET ASSETS 145. $ 1,922,321,299
146.INITIAL CLASS: 148. $1.00
147.NET ASSET VALUE, offering price and redemption price per share
($1,916,300,252 (divided by) 1,916,711,804 shares)
149.CLASS B: 151. $1.00
150.NET ASSET VALUE, offering price and redemption price per share ($6,021,047 (divided by)
6,022,340
shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
152.153.INTEREST INCOME 154. $ 57,396,999
155.EXPENSES 156. 157.
158.Management fee $ 4,907,921 159.
160.Transfer agent fees 1,722,163 161.
Initial Class
162. Class B 9,940 163.
164.Distribution fees - Class B 19,952 165.
166.Accounting fees and expenses 98,215 167.
168.Custodian fees and expenses 32,766 169.
170.Registration fees - Initial Class 92,672 171.
172.Registration fees - Class B 17,460 173.
174.Legal 8,057 175.
176.Miscellaneous 1,682 177.
178. Total expenses before reductions 6,910,828 179.
180. Expense reductions (509,650) 6,401,178
181.182.NET INTEREST INCOME 183. 50,995,821
184.185.NET REALIZED GAIN (LOSS) ON INVESTMENTS 186. 12,952
187.188.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 189. $ 51,008,773
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1996 JULY 31, 1995
(UNAUDITED)
190.INCREASE (DECREASE) IN NET ASSETS
191.Operations $ 50,995,821 $ 95,675,780
Net interest income
192. Net realized gain (loss) 12,952 29,208
193. 51,008,773 95,704,988
194.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
195.Distributions to shareholders from:
Net interest income
196. (50,870,250) (95,473,806)
Initial Class
197. (125,571) (201,974)
Class B
198.Share transactions - net increase (decrease) 91,457,314 (194,955,395)
199. 91,470,266 (194,926,187)
200.TOTAL INCREASE (DECREASE) IN NET ASSETS
201.NET ASSETS 202. 203.
204. Beginning of period 1,830,851,033 2,025,777,220
205. End of period $ 1,922,321,299 $ 1,830,851,033
</TABLE>
FINANCIAL HIGHLIGHTS - INITIAL CLASS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31,
ENDED
JANUARY 31, 1996
(UNAUDITED) 1995 1994 1993 1992 1991
206.SELECTED PER-SHARE DATA
207.Net asset value, beginning
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
208.Income from Investment Operations
209. Net interest income .026 .049 .029 .027 .042 .065
210.Less Distributions
211. From net interest income (.026) (.049) (.029) (.027) (.042) (.065)
212.Net asset value, end of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
213.TOTAL RETURN B 2.64% 5.02% 2.89 2.78 4.25 6.69
% % % %
214.RATIOS AND SUPPLEMENTAL DATA
215.Net assets, end of period
(000 omitted) $ 1,916,300 $ 1,827,697 $ 2,025,149 $ 2,949,171 $ 3,093,714 $ 1,701,704
216.Ratio of expenses to average
net assets .65%A, .65% .60 .57 .59 .59
C C % % % %
217.Ratio of net interest
income to average 5.20%A 4.89% 2.81 2.73 4.14 6.42
net assets % % % %
</TABLE>
A ANNUALIZED
B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
C FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
FINANCIAL HIGHLIGHTS - CLASS B
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR JULY 1, 1994
ENDED ENDED (COMMENCEMENT
JANUARY 31, 1996 JULY 31, OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1995 1994
218.SELECTED PER-SHARE DATA
219.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000
220.Income from Investment Operations
221. Net interest income .023 .042 .002
222.Less Distributions
223. From net interest income (.023) (.042) (.002)
224.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000
225.TOTAL RETURN B,C 2.28% 4.28% .25%
226.RATIOS AND SUPPLEMENTAL DATA
227.Net assets, end of period (000 omitted) $ 6,021 $ 3,154 $ 628
228.Ratio of expenses to average net assets 1.35%A 1.35% 1.35%A,
,D D D
229.Ratio of net interest income to average net assets 4.51%A 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 THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1996 (Unaudited)
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 financial statements have been prepared in conformity with generally
accepted accounting principles which permit management to make certain
estimates and assumptions at the date of the financial statements.
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, 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 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. FMR, the funds' investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
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 were $54,927,004 at 5.90% and
$1,310,214,930 at 5.91%. The investments in repurchase agreements through
the joint trading account are summarized as follows:
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING
DATED JANUARY 31, 1996, DUE FEBRUARY 1,1996 AT 5.90%
Number of dealers or banks 4
Maximum amount with one dealer or bank 41.7%
Aggregate principal amount of agreements $480,000,000
Aggregate maturity amount of agreements $480,078,694
Aggregate market value of collateral $490,903,041
Maturity dates of collateral 5/30/96 to 2/15/19
Coupon rates of collateral 0.0% to 14.0%
DATED JANUARY 31, 1996, DUE FEBRUARY 1,1996 AT 5.91%
Number of dealers or banks 12
Maximum amount with one dealer or bank 30.4%
Aggregate principal amount of agreements $6,569,596,000
Aggregate maturity amount of agreements $6,570,673,864
Aggregate market value of collateral $6,705,869,261
Maturity dates of collateral 2/15/96 to 2/15/19
Coupon rates of collateral 0.0% to 15.75%
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a fee that
is computed daily at an annual rate of .50% of the fund's average net
assets.
SUB-ADVISER FEE. As each fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fees are paid prior to any voluntary
expense reimbursements which may be in effect.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans) adopted on behalf of the Money Market fund and the
Initial Class 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
$2,606,625 and $2,851,670 for the Money Market fund and the Initial Class
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 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 $19,952 under the Class B Plan, of which
$6,991 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD - CONTINUED
reinvested dividends and capital gains. For the period, FDC received
contingent deferred sales charges of $10,970 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. FIIOC receives account fees and
asset-based fees that vary according to account size and type of account.
FIIOC pays for typesetting, printing and mailing of all shareholder
reports, except proxy statements.
For the period, the transfer agent fees were equivalent to an annualized
rate of .25%, .18% and .36% of average net assets for the Money Market fund
and the Initial Class and Class B shares of U.S. Treasury fund,
respectively.
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 $1,515,232.
(II) U.S. TREASURY INITIAL CLASS. For the period, this expense limitation
was .65% of average net assets and the reimbursement reduced expenses by
$486,093.
(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
$23,557.
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 43%.
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>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1996 JULY 31, 1995
(UNAUDITED)
INITIAL CLASS:
Proceeds from sales of shares $ 5,880,620,964 $ 10,338,354,217
Reinvestment of distributions from net interest income 30,002,952 49,283,595
Cost of shares redeemed (5,822,033,913) (10,585,120,039)
Net increase (decrease) in net assets and shares resulting from share transactions $ 88,590,003 $ (197,482,227)
CLASS B:
Proceeds from sales of shares $ 10,814,582 $ 17,802,599
Reinvestment of distributions from net interest income 110,430 185,089
Cost of shares redeemed (8,057,701) (15,460,856)
Net increase (decrease) in net assets and shares resulting from share transactions $ 2,867,311 $ 2,526,832
</TABLE>
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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
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
The Bank of New York
New York, NY
* INDEPENDENT TRUSTEES
(registered trademark)
CAPITAL
RESERVES
PORTFOLIOS
SEMIANNUAL REPORT
JANUARY 31, 1996
DMF-SANN-0396
9596
CONTENTS
SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
CAPITAL RESERVES PORTFOLIOS:
MONEY MARKET PORTFOLIO 3
U.S. GOVERNMENT PORTFOLIO 11
MUNICIPAL MONEY MARKET PORTFOLIO 16
NOTES TO THE FINANCIAL STATEMENTS 26
MONEY MARKET PORTFOLIO AND U.S. GOVERNMENT PORTFOLIO EACH SEEK TO OBTAIN AS
HIGH A LEVEL OF CURRENT INCOME AS IS CONSISTENT WITH THE PRESERVATION OF
CAPITAL AND LIQUIDITY BY INVESTING IN HIGH-QUALITY, SHORT-TERM MONEY MARKET
SECURITIES. MONEY MARKET PORTFOLIO INVESTS IN A BROAD RANGE OF MONEY MARKET
SECURITIES. U.S. GOVERNMENT PORTFOLIO INVESTS ONLY IN OBLIGATIONS ISSUED OR
GUARANTEED AS TO PRINCIPAL AND INTEREST BY THE U.S. GOVERNMENT.
MUNICIPAL MONEY MARKET PORTFOLIO SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT
INCOME, EXEMPT FROM FEDERAL INCOME TAXES, AS IS CONSISTENT WITH THE
PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING IN HIGH-QUALITY,
SHORT-TERM MUNICIPAL SECURITIES.
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, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL 1-800-843-3001 FOR A FREE PROSPECTUS. READ
IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
CAPITAL RESERVES: MONEY MARKET PORTFOLIO
INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 0.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
DOMESTIC BANKERS' ACCEPTANCES - 0.9%
Chemical Bank
4/17/96 5.81% $ 5,714,286 $ 5,646,126
4/24/96 5.80 4,714,286 4,652,984
TOTAL BANKERS' ACCEPTANCES 10,299,110
CERTIFICATES OF DEPOSIT - 29.2%
DOMESTIC CERTIFICATES OF DEPOSIT - 1.3%
Chase Manhattan Bank
7/24/96 5.20 4,000,000 4,000,000
Old Kent Bank & Trust Co.
7/24/96 5.25 10,000,000 10,000,000
14,000,000
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.8%
Bank of Nova Scotia
2/14/96 5.74 20,000,000 20,000,071
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 10.2%
Bayerische Hypotheken-und Weschel
3/22/96 5.70 5,000,000 4,999,533
4/12/96 5.77 10,000,000 10,000,192
Canadian Imperial Bank of Commerce
3/11/96 5.50 5,000,000 5,000,000
Deutsche Bank, A.G.
4/22/96 5.77 5,000,000 5,000,000
8/1/96 5.19 10,000,000 10,000,000
National Westminster Bank, PLC
3/12/96 5.50 15,000,000 15,000,000
Rabobank Nederland, N.V.
2/16/96 6.32 2,000,000 2,000,431
5/16/96 5.77 2,000,000 2,000,591
7/29/96 5.18 5,000,000 5,000,000
Royal Bank of Canada
3/27/96 5.75 5,000,000 5,000,000
5/10/96 5.77 10,000,000 10,004,255
Swiss Bank Corp.
2/29/96 5.73 15,000,000 15,000,000
3/25/96 5.75 5,000,000 5,000,000
5/6/96 5.47 9,000,000 9,000,000
6/3/96 5.40 10,000,000 10,000,000
113,005,002
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 3.8%
Chemical Bank
3/27/96 5.81% $ 10,000,000 $ 10,000,000
Harris Trust & Savings Bank, Chicago
3/4/96 5.73 7,000,000 7,000,000
Morgan Guaranty Trust Co.
2/7/96 5.78 5,000,000 5,000,016
4/4/96 5.74 15,000,000 15,001,109
7/15/96 5.33 5,000,000 5,000,411
42,001,536
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 12.1%
ABN-AMRO Bank
3/13/96 5.72 10,000,000 10,001,801
5/7/96 5.76 10,000,000 10,000,259
Abbey National Treasury Services
4/23/96 5.75 5,000,000 5,000,000
Bayerische Hypotheken-und Weschel
2/12/96 5.77 9,000,000 9,000,018
2/28/96 5.74 5,000,000 5,000,037
Bayerische Landesbank Girozentrale
4/26/96 5.77 10,000,000 10,000,229
Bayerische Vereinsbank A.G.
3/18/96 5.50 5,000,000 5,000,032
5/7/96 5.43 5,000,000 5,001,425
Commerzbank, Germany
2/29/96 5.74 10,000,000 10,000,077
Deutsche Bank, A.G.
2/26/96 5.76 20,000,000 20,000,172
3/1/96 5.72 5,000,000 4,999,996
4/12/96 5.70 5,000,000 5,007,498
7/29/96 5.20 5,000,000 5,000,000
Landesbank Hessen - Thuringen
3/14/96 5.71 5,000,000 5,000,028
7/18/96 5.18 5,000,000 5,000,228
Norddeutsche Landesbank
4/29/96 5.65 8,000,000 8,001,735
Royal Bank of Scotland, PLC
3/18/96 5.71 10,000,000 10,000,000
Westdeutsche Landesbank
5/1/96 5.32 3,000,000 3,000,148
135,013,683
TOTAL CERTIFICATES OF DEPOSIT 324,020,292
COMMERCIAL PAPER - 52.8%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
ANZ (DE), Inc.
3/5/96 5.68% $ 6,000,000 $ 5,969,200
AT&T Capital Corp.
2/5/96 5.78 11,000,000 10,993,026
3/8/96 5.63 4,000,000 3,977,720
3/27/96 5.58 15,000,000 14,873,958
AVCO Financial Services, Inc.
3/5/96 5.76 5,000,000 4,974,013
American Brands, Inc.
4/23/96 5.32 10,000,000 9,880,417
American Express Credit Corp.
3/1/96 5.80 5,000,000 4,977,283
4/15/96 5.76 9,000,000 8,896,400
4/24/96 5.51 10,000,000 9,875,269
American Home Food Products, Inc.
4/3/96 5.44 1,000,000 990,734
American Home Products
3/15/96 5.48 8,700,000 8,643,573
American Telephone & Telegraph Co.
3/14/96 5.75 10,000,000 9,934,317
3/14/96 5.80 5,000,000 4,967,042
Asset Securitization Cooperative Corporation
3/14/96 5.46 10,000,000 9,936,767
4/4/96 5.43 5,000,000 4,953,013
Associates Corp. of North America
3/15/96 5.75 10,000,000 9,932,275
4/8/96 5.67 5,000,000 4,948,261
4/11/96 5.64 10,000,000 9,892,472
5/16/96 5.35 10,000,000 9,846,583
Beneficial Corp.
2/13/96 5.86 5,000,000 4,990,333
3/1/96 5.73 9,000,000 8,959,038
Bradford & Bingley Building Society
2/6/96 5.76 5,000,000 4,996,056
CIT Group Holdings, Inc.
2/15/96 5.87 5,000,000 4,988,917
2/16/96 5.77 8,000,000 7,981,000
2/20/96 5.76 3,000,000 2,991,023
2/27/96 5.81 7,000,000 6,971,183
3/4/96 5.82 10,000,000 9,949,511
Cheltenham & Gloucester, PLC
3/13/96 5.59 5,000,000 4,968,567
Chemical Banking Corporation
3/15/96 5.69 5,000,000 4,966,556
4/15/96 5.45 8,000,000 7,911,693
4/30/96 5.39 10,000,000 9,868,725
Chrysler Financial Corporation
2/2/96 5.87 5,000,000 4,999,193
2/8/96 5.84 8,000,000 7,991,009
2/9/96 5.84 3,000,000 2,996,147
3/4/96 5.60 2,000,000 1,990,133
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
CoreStates Capital Corp.
2/2/96 5.61% (a) $ 10,000,000 $ 10,000,000
2/2/96 5.67 (a) 5,000,000 5,000,000
2/7/96 5.61 (a) 5,000,000 4,999,872
2/9/96 5.58 (a) 4,000,000 4,000,000
Dakota
2/21/96 5.59 12,110,000 12,072,661
2/23/96 5.57 8,000,000 7,972,964
2/23/96 5.62 2,500,000 2,491,490
Enterprise Funding Corp.
2/2/96 5.84 9,026,000 9,024,546
2/8/96 5.70 8,000,000 7,991,196
2/8/96 5.84 8,080,000 8,070,888
3/1/96 5.53 4,346,000 4,326,745
3/7/96 5.54 1,250,000 1,243,316
3/27/96 5.45 4,000,000 3,967,000
4/3/96 5.44 3,000,000 2,972,203
4/19/96 5.44 4,054,000 4,006,832
Ford Motor Credit Corp.
2/14/96 5.76 10,000,000 9,979,489
2/15/96 5.77 5,000,000 4,988,917
3/27/96 5.76 5,000,000 4,956,993
6/3/96 5.28 3,000,000 2,946,905
General Electric Capital Corp.
3/14/96 5.75 (a) 10,000,000 10,000,000
3/15/96 5.69 5,000,000 4,966,675
3/27/96 5.80 10,000,000 9,913,833
4/29/96 5.73 10,000,000 9,863,844
6/24/96 5.23 4,000,000 3,918,080
General Electric Corp.
5/15/96 5.41 10,000,000 9,846,600
General Motors Acceptance Corp.
2/15/96 5.84 5,000,000 4,988,819
2/20/96 5.84 5,000,000 4,984,826
3/5/96 5.83 5,000,000 4,973,738
3/28/96 5.55 5,000,000 4,957,300
Generale De Banque SA
6/26/96 5.49 10,000,000 9,783,433
Glaxo Wellcome, PLC
2/23/96 5.75 5,000,000 4,982,706
Goldman Sachs Group, L.P. (The)
3/18/96 5.75 10,000,000 9,927,806
Hanson Finance (UK), PLC
2/16/96 5.80 1,800,000 1,795,703
3/4/96 5.74 5,000,000 4,974,889
IBM Corp.
3/12/96 5.72 10,000,000 9,937,667
John Deere Capital Corp.
2/27/96 5.80 5,000,000 4,979,453
Lilly (Eli) & Co.
4/8/96 5.54 6,000,000 5,939,142
5/6/96 5.53 8,000,000 7,885,578
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Merrill Lynch & Co., Inc.
3/8/96 5.76% $ 11,000,000 $ 10,938,400
Morgan Stanley Group, Inc.
3/29/96 5.58 7,000,000 6,939,042
4/30/96 5.40 2,000,000 1,973,696
5/16/96 5.95 5,000,000 4,916,919
National Rural Util. Coop. Fin. Corp.
2/9/96 5.75 5,000,000 4,993,689
Nationwide Building Society
4/18/96 5.42 15,000,000 14,828,354
New Center Asset Trust
2/16/96 5.81 7,000,000 6,983,229
2/28/96 5.82 10,000,000 9,956,875
Norwest Corp.
3/13/96 5.71 5,000,000 4,968,111
Norwest Financial
2/28/96 5.80 5,000,000 4,978,663
PHH Corp.
2/21/96 5.57 (a) 3,000,000 2,999,357
Sears Roebuck Acceptance Corp.
2/12/96 5.83 4,000,000 3,993,015
Societe Generale North America, Inc.
3/4/96 5.75 8,000,000 7,959,893
Textron, Inc.
2/8/96 5.68 2,000,000 1,997,803
Westpac Capital Corp.
7/25/96 5.24 13,000,000 12,677,392
TOTAL COMMERCIAL PAPER 586,717,954
FEDERAL AGENCIES (A) - 0.5%
FEDERAL FARM CREDIT BANK - AGENCY COUPON - 0.5%
2/1/96 5.76 5,000,000 4,999,822
BANK NOTES - 5.6%
Bank of America National Trust & Savings Assoc.
2/1/96 5.65 (a) 5,000,000 4,998,294
Boatmen's National Bank of St. Louis
3/22/96 5.84 (a) 5,000,000 4,998,462
Comerica Bank-Detroit
3/1/96 5.83 (a) 5,000,000 4,997,838
5/28/96 5.83 5,000,000 5,005,207
BANK NOTES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
First of America Bank - Indiana
2/21/96 5.60% (a) $ 10,000,000 $ 10,000,632
First of America Bank - Michigan
2/23/96 5.55 5,000,000 5,000,097
2/23/96 5.58 5,000,000 5,000,024
NBD Bank, N.A.
6/24/96 5.25 4,000,000 4,000,000
PNC Bank, N.A.
2/20/96 5.58 (a) 18,000,000 17,998,933
TOTAL BANK NOTES 61,999,487
MASTER NOTES (A) - 2.1%
J.P. Morgan Securities
2/20/96 5.60 8,000,000 8,000,000
Norwest Corp.
2/1/96 5.30 8,000,000 8,000,000
2/1/96 5.53 7,000,000 7,000,000
TOTAL MASTER NOTES 23,000,000
MEDIUM-TERM NOTES - 5.9%
Abbey National Treasury Services
3/9/96 5.69 (a) (b) 10,000,000 10,000,000
Associates Corp. of North America
6/1/96 5.66 3,000,000 3,023,238
Bear Stearns Cos., Inc.
4/11/96 5.57 (a) 10,000,000 10,001,617
Dean Witter, Discover & Co.
2/20/96 5.56 (a) 5,000,000 5,000,416
General Electric Capital Corp.
2/1/96 5.78 (a) 5,000,000 4,999,790
2/24/96 5.81 (a) 5,000,000 5,001,121
General Motors Acceptance Corp.
2/7/96 6.00 (a) 6,000,000 6,000,000
4/28/96 5.55 (a) 3,000,000 3,010,613
5/1/96 5.43 (a) 6,000,000 6,000,000
Goldman Sachs Group, L.P. (The)
3/1/96 5.91 (a) (b) 6,000,000 6,000,000
Norwest Corp.
3/10/96 5.83 (a) 7,000,000 7,000,000
TOTAL MEDIUM-TERM NOTES 66,036,795
SHORT-TERM NOTES (A) (B) - 2.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
SMM Trust Company (1995-B)
2/2/96 5.74% $ 3,000,000 $ 3,000,000
SMM Trust Company (1995-I)
2/29/96 5.61 8,000,000 7,999,249
SMM Trust Company (1995-J)
2/15/96 5.65 16,000,000 16,000,000
TOTAL SHORT-TERM NOTES 26,999,249
REPURCHASE AGREEMENTS - 0.6%
MATURITY
AMOUNT
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/96 due 2/1/96:
At 5.92% $ 6,833,124 6,832,000
TOTAL INVESTMENTS - 100% $ 1,110,904,709
Total Cost for Income Tax Purposes $ 1,110,904,709
LEGEND
(b) 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.
(c) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $42,999,249 or 4% of net
assets.
INCOME TAX INFORMATION
At July 31, 1995, the fund had a capital loss carryforward of approximately
$131,000 which will expire on July 31, 2002.
CAPITAL RESERVES: MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1996 (UNAUDITED)
8.ASSETS 9. 10.
11.Investment in securities, at value (including repurchase agreements of $6,832,000) - See 12. $ 1,110,904,709
accompanying schedule
13.Receivable for investments sold 14. 10,112,288
15.Interest receivable 16. 5,923,707
17. 18.TOTAL ASSETS 19. 1,126,940,704
20.LIABILITIES 21. 22.
23.Payable for investments purchased $ 32,021,936 24.
25.Share transactions in process 4,359,851 26.
27.Distributions payable 202,807 28.
29.Accrued management fee 335,321 30.
31.Other payables and accrued expenses 596,700 32.
33. 34.TOTAL LIABILITIES 35. 37,516,615
36.37.NET ASSETS 38. $ 1,089,424,089
39.Net Assets consist of: 40. 41.
42.Paid in capital 43. $ 1,089,490,004
44.Accumulated net realized gain (loss) on investments 45. (65,915)
46.47.NET ASSETS, for 1,089,490,004 shares outstanding 48. $ 1,089,424,089
49.50.NET ASSET VALUE, offering price and redemption price per share 51. $1.00
($1,089,424,089 (divided by) 1,089,490,004 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
52.53.INTEREST INCOME 54. $ 30,573,456
55.EXPENSES 56. 57.
58.Management fee $ 2,585,832 59.
60.Transfer agent fees 1,391,396 61.
62.Distribution fees 1,811,752 63.
64.Accounting fees and expenses 63,593 65.
66.Non-interested trustees' compensation 1,240 67.
68.Custodian fees and expenses 34,538 69.
70.Registration fees 200,675 71.
72.Audit 6,152 73.
74.Legal 3,670 75.
76.Miscellaneous 241 77.
78. Total expenses before reductions 6,099,089 79.
80. Expense reductions (979,141) 5,119,948
81.82.NET INTEREST INCOME 83. 25,453,508
84.85.NET REALIZED GAIN (LOSS) ON INVESTMENTS 86. 52,774
87.88.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 89. $ 25,506,282
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1996 JULY 31, 1995
(UNAUDITED)
90.INCREASE (DECREASE) IN NET ASSETS
91.Operations $ 25,453,508 $ 36,614,114
Net interest income
92. Net realized gain (loss) 52,774 25,923
93. 94.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 25,506,282 36,640,037
95.Distributions to shareholders from net interest income (25,453,508) (36,614,114)
96.Share transactions at net asset value of $1.00 per share 3,198,854,971 4,573,488,050
Proceeds from sales of shares
97. Reinvestment of distributions from net interest income 24,244,901 33,809,364
98. Cost of shares redeemed (3,109,703,343) (4,311,497,330)
99.100. 113,396,529 295,800,084
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
101. 113,449,303 295,826,007
102.TOTAL INCREASE (DECREASE) IN NET ASSETS
103.NET ASSETS 104. 105.
106. Beginning of period 975,974,786 680,148,779
107. End of period $ 1,089,424,089 $ 975,974,786
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, 1990
ENDED (COMMENCEMEN
JANUARY 31, 1996 T
OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1995 1994 1993 1992 1991
108.SELECTED PER-SHARE DATA
109.Net asset value,
beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
110.Income from Investment
Operations .025 .048 .027 .025 .041 .047
Net interest income
111.Less Distributions (.025) (.048) (.027) (.025) (.041) (.047)
From net interest income
112.Net asset value, end
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
113.TOTAL RETURN B,C 2.50% 4.86% 2.72% 2.57% 4.13% 4.79%
114.RATIOS AND SUPPLEMENTAL DATA
115.Net assets, end of period
(000 $ 1,089,424 $ 975,975 $ 680,149 $ 601,498 $ 354,189 $ 108,991
omitted)
116.Ratio of expenses to
average net .99%A, .99% .98% .95% .82% .83%A,
assets D D D D D D
117.Ratio of net interest
income to 4.92%A 4.80% 2.70% 2.52% 3.81% 5.71%A
average
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO
INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
U.S. TREASURY OBLIGATIONS - 28.6%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY NOTES - 28.6%
2/15/96 5.49% $ 1,000,000 $ 999,609
2/15/96 6.18 3,000,000 2,998,122
2/15/96 6.21 5,000,000 4,996,870
2/29/96 5.60 5,000,000 4,995,705
4/15/96 5.51 2,000,000 2,014,185
4/30/96 5.18 3,000,000 3,016,706
4/30/96 5.58 4,000,000 4,017,305
4/30/96 5.59 6,000,000 6,025,673
4/30/96 5.65 5,000,000 4,996,386
5/15/96 5.15 9,000,000 9,053,332
5/15/96 5.18 9,000,000 8,974,292
5/15/96 5.20 2,000,000 2,011,570
5/15/96 5.43 3,000,000 3,014,099
6/30/96 5.16 4,000,000 4,042,249
TOTAL U.S. TREASURY OBLIGATIONS 61,156,103
REPURCHASE AGREEMENTS - 71.4%
MATURITY
AMOUNT
In a joint trading account
(U.S. Treasury Obligations)
dated 1/31/96 due 2/1/96:
At 5.90% $ 24,565,027 $ 24,561,000
At 5.91% 128,021,001 128,000,000
TOTAL REPURCHASE AGREEMENTS 152,561,000
TOTAL INVESTMENTS - 100% $ 213,717,103
Total Cost for Income Tax Purposes $ 213,717,103
INCOME TAX INFORMATION
At July 31, 1995, the fund had a capital loss carryforward of approximately
$56,000 of which $6,000, $35,000 and $15,000 will expire on July 31, 2001,
2002 and 2003, respectively.
CAPITAL RESERVES: U.S. GOVERNMENT PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1996 (UNAUDITED)
118.ASSETS 119. 120.
121.Investment in securities, at value (including repurchase agreements of $152,561,000) - 122. $ 213,717,103
See accompanying schedule
123.Cash 124. 5,371,793
125.Interest receivable 126. 1,025,445
127. 128.TOTAL ASSETS 129. 220,114,341
130.LIABILITIES 131. 132.
133.Distributions payable $ 67,971 134.
135.Accrued management fee 79,319 136.
137.Other payables and accrued expenses 131,743 138.
139. 140.TOTAL LIABILITIES 141. 279,033
142.143.NET ASSETS 144. $ 219,835,308
145.Net Assets consist of: 146. 147.
148.Paid in capital 149. $ 219,888,860
150.Accumulated net realized gain (loss) on investments 151. (53,552)
152.153.NET ASSETS, for 219,888,860 shares outstanding 154. $ 219,835,308
155.156.NET ASSET VALUE, offering price and redemption price per share 157. $1.00
($219,835,308 (divided by) 219,888,860 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
158.159.INTEREST INCOME 160. $ 6,293,749
161.EXPENSES 162. 163.
164.Management fee $ 538,583 165.
166.Transfer agent fees 234,180 167.
168.Distribution fees 377,859 169.
170.Accounting fees and expenses 18,746 171.
172.Custodian fees and expenses 15,664 173.
174.Registration fees 154,870 175.
176.Audit 6,116 177.
178.Legal 904 179.
180.Miscellaneous 257 181.
182. Total expenses before reductions 1,347,179 183.
184. Expense reductions (280,785) 1,066,394
185.186.NET INTEREST INCOME 187. 5,227,355
188.189.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 190. $ 5,227,355
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1996 JULY 31, 1995
(UNAUDITED)
191.INCREASE (DECREASE) IN NET ASSETS
192.Operations $ 5,227,355 $ 11,419,205
Net interest income
193. Net realized gain (loss) - (15,092)
194. 5,227,355 11,404,113
195.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
196.Distributions to shareholders from net interest income (5,227,355) (11,419,205)
197.Share transactions at net asset value of $1.00 per share 918,137,256 2,024,521,368
Proceeds from sales of shares
198. Reinvestment of distributions from net interest income 4,856,243 9,304,614
199. Cost of shares redeemed (905,123,198) (2,138,106,584)
200.201. 17,870,301 (104,280,602)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
202. 17,870,301 (104,295,694)
203.TOTAL INCREASE (DECREASE) IN NET ASSETS
204.NET ASSETS 205. 206.
207. Beginning of period 201,965,007 306,260,701
208. End of period $ 219,835,308 $ 201,965,007
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, OCTOBER 23, 1990
ENDED (COMMENCEMENT
JANUARY 31, 1996 OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1995 1994 1993 1992 1991
209.SELECTED PER-SHARE DATA
210.Net asset value,
beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
211.Income from Investment .024 .045 .025 .024 .041 .046
Operations
Net interest income
212.Less Distributions (.024) (.045) (.025) (.024) (.041) (.046)
From net interest income
213.Net asset value, end
of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
214.TOTAL RETURN B, C 2.46% 4.64% 2.52% 2.40% 4.15% 4.66%
215.RATIOS AND SUPPLEMENTAL DATA
216.Net assets, end of
period $ 219,835 $ 201,965 $ 306,261 $ 264,483 $ 308,542 $ 80,762
(000 omitted)
217.Ratio of expenses
to average .99%A .99%D .98%D .95%D .65%D .70%A
net assets ,D ,D
218.Ratio of net interest
income to 4.85%A 4.41% 2.50% 2.39% 3.82% 5.65%A
average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO
INVESTMENTS JANUARY 31, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
ALABAMA - 1.4%
Roanoke Ind. Dev. Ind. Dev. Rev. (Wehadkee/Rock Mills Proj.) Series 1992,
3.45%,
LOC SunTrust Bank, VRDN (b) $ 1,400,000 $ 1,400,000
Talladega Ind. Poll. Cont. Dev. (Wehadkee Yarn Mills Proj.) Series 1990,
3.45%,
LOC SunTrust Bank, VRDN (b) 625,000 625,000
2,025,000
ARIZONA - 3.3%
Phoenix Civic Improvement Corp. Airport Rev. Series 1995, 3.30%,
LOC Landesbank Hessen, VRDN (b) 1,000,000 1,000,000
Yavapi County Ind. Dev. Auth. Ind. Dev. Rev. Bonds (Citizens Utils. Co.)
Series 1993 (b):
3.85%, tender 2/8/96 3,000,000 3,000,000
3.80%, tender 2/13/96 700,000 700,000
4,700,000
ARKANSAS - 3.6%
Clark County Solid Waste Disp. Rev. (Reynolds Metals Co. Proj.), 3.35%,
LOC SunTrust Bank, VRDN (b) 5,100,000 5,100,000
CALIFORNIA - 7.8%
Alameda County TRAN 4.75% 7/25/96, LOC Union Bank of Switzerland
1,000,000 1,003,442
California Higher Ed. Student Loan Auth. Rev. Bonds:
Series E-5, 4.25%, tender 6/1/96, LOC Student Loan Mktg. Assoc. (b)
700,000 700,000
Series 1987 C, 2.80%, tender 6/1/96, LOC Student Loan Mktg. Assoc. (b)
1,500,000 1,500,000
California Higher Ed. Loan Student Loan Auth. Series 1987 C, 3.20%,
LOC Student Loan Mktg. Assoc., VRDN (b) 1,300,000 1,300,000
California Student Ed. Loan Mktg. Corp. Student Loan Rev. Bonds Series 1994
A, 4.35%,
tender 6/1/96, LOC Dresdner Bank (b) 500,000 500,000
Fresno County TRAN 4.50% 7/2/96 500,000 500,838
Los Angeles TRAN 4.50% 7/1/96 4,500,000 4,513,635
San Bernardino County TRAN 4.50% 7/5/96 1,000,000 1,002,240
11,020,155
COLORADO - 1.7%
Fort Collins County Ind. Dev. Rev. (Phelps -Tointon Millwork Proj.) Series
1993, 3.40%,
LOC Bank One, Milwaukee, VRDN (b) 1,400,000 1,400,000
Wheat Ridge County Ind. Dev. Rev. (Adolph Coors Co. Proj.), Series 1993,
3.40%,
LOC Wachovia Bank, VRDN (b) 1,000,000 1,000,000
2,400,000
CONNECTICUT - 0.7%
Connecticut Hsg. Fin. Auth. Hsg. Mtg. Rev. Bonds Series 1993 H-2, 3.75%,
tender 4/15/96 (b) 1,000,000 1,000,000
FLORIDA - 7.2%
Broward County Ind. Dev. Auth. Rev. Rfdg. (Goldline Lab., Inc. Proj.)
Series 1989 B, 3.15%,
LOC Barnett Bank, VRDN (b) 146,000 146,000
Dade County Hsg. Fin. Corp. Participating VRDN, Series 1991 A, 3.60%
(Liquidity Facility Bank One) (b) (c) 1,060,000 1,060,000
Dade County Ind. Dev. Rev. (Montenay-Dade Proj.) VRDN (b):
Series 1988, 3.40%, LOC Banque Paribas 1,345,000 1,345,000
Series 1990 A, 3.40%, LOC Banque Paribas 1,200,000 1,200,000
MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FLORIDA - CONTINUED
Dade County Multi-Family Hsg. Rev. (Biscayne View Apts. Proj.) Series 1993,
3.60%
(Commonwealth Life Insurance Co. Guaranteed) VRDN (b) $ 1,475,000 $
1,475,000
Okeechobee County Solid Waste Rev. (Chambers Waste Sys.) Series 1992,
3.50%,
LOC Morgan Guaranty, VRDN (b) 900,000 900,000
Palm Beach County Health Facs. Auth. Bonds 3.20%, tender 2/2/96 (MBIA
Insured)
(Liquidity Facility Credit Suisse) 4,000,000 4,000,000
10,126,000
GEORGIA - 0.6%
Floyd County Dev. Auth. Ind. Dev. Rev. (Marglen Ind. Inc. Proj.) 3.45%,
LOC SunTrust Bank, VRDN (b) 700,000 700,000
Pierce County Ind. Dev. & Bldg. Auth. Rev. (American Egg Prods. Inc. Proj.)
Series 1989, 3.45%, LOC Barclays Bank, VRDN (b) 160,000 160,000
860,000
ILLINOIS - 1.0%
Chicago Water Rev. Bonds Series 1995, 3.60% 11/1/96 (FGIC Insured)
500,000 500,000
Illinois Dev. Fin. Auth. (Kindlon Partners Proj.) 3.60%, LOC Lasalle Bank,
VRDN (b) 900,000 900,000
1,400,000
INDIANA - 0.7%
Indiana Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds (b):
Series 1994 C, 4%, tender 7/3/96 (FGIC Insured) 500,000 500,000
Series D-2, 3.95%, tender 11/1/96 500,000 500,000
1,000,000
IOWA - 0.7%
Iowa School TRAN Series 1996 B, 4.25% 1/30/97 (MBIA Insured) (d)
1,000,000 1,008,190
KANSAS - 2.0%
Wichita Gen. Oblig. Ban Series B, 4.15% 11/21/96 2,750,000 2,755,299
KENTUCKY - 0.6%
Cynthiana Ind. Dev. Board Rev. (E.D. Bullard Co. Proj.), 3.50%, LOC
NationsBank, VRDN (b) 900,000 900,000
LOUISIANA - 2.5%
Calcasieu Parish Pub. Trust Auth. Solid Waste Disp. Rev. (PPG Industries
Inc. Proj.)
Series 1994, 3.35%, VRDN (b) 1,000,000 1,000,000
Lake Charles Harbor and Terminal Dist. Port Impt. Rev., 3.25%,
LOC Nat'l. Westminster Bank, VRDN (b) 2,000,000 2,000,000
Louisiana Hsg. Fin. Agcy. Mtg. Rev. Bonds Series 1996 A, 3.45%, tender
1//15/97
(FGIC Insured) (b) 500,000 500,000
3,500,000
MARYLAND - 1.1%
Baltimore RAN 4.25% 6/10/96 1,000,000 1,001,667
Washington Suburban Sanitation Dist. Bonds 2nd Series, 8% 1/1/97 500,000
520,409
1,522,076
MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
MICHIGAN - 5.0%
Michigan Hsg. Dev. Auth. Participating VRDN, Series PT-58, 3.65%
(Liquidity Facility Credit Suisse) (b) (c) (e) $ 1,000,000 $ 1,000,000
Michigan Hsg. Fin. Auth. Hosp. Equip. Rev. 3.35%, LOC First of America
Bank,VRDN 1,800,000 1,800,000
Michigan Municipal Bond Auth. RAN Series 1995 B, 4.50% 7/3/96 2,500,000
2,507,044
Michigan Strategic Fund Solid Waste Disp. Rev. (Grayling Gen. Station
Proj.)
Series 1990, 3.30%, LOC Barclays Bank, VRDN (b) 1,700,000 1,700,000
7,007,044
MINNESOTA - 0.6%
Minnesota Hsg. Fin. Agcy. Single-Family Mtg. Rev. Bonds Series 1995 N,
3.60%,
tender 12/12/96 800,000 800,000
MISSOURI - 1.3%
Missouri Health & Ed. Facs. Auth. Bonds (Sisters of Mercy Health Sys.)
Series 1995 A, 3.60% 12/1/96 405,000 405,000
Missouri Higher Ed. Loan Student Loan Auth. Rev. Series 1990 B, 3.25%,
LOC Nat'l. Westminster, VRDN (b) 1,000,000 1,000,000
Missouri Hsg. Dev. Commty. Mtg. Rev. Bonds (Single Family Homeownership
Loan)
Series D, 4.20%, tender 11/1/96 (FGIC Insured) (b) 440,000 440,000
1,845,000
NEVADA - 7.5%
Clark County Poll. Cont. Rev. Bonds (So. California Edison Co.) (b):
Series 1987 A:
3.75%, tender 2/21/96 1,500,000 1,500,000
3.55%, tender 3/21/96 2,000,000 2,000,000
3.45%, tender 3/27/96 1,810,000 1,810,000
Washoe County Water Fac. Rev. Bonds (Sierra Pacific Pwr. Co.) (b):
Series 1990 :
3.75%, tender 3/12/96, LOC Union Bank Switzerland 1,500,000 1,500,000
3.65%, tender 3/13/96, LOC Union Bank Switzerland 2,000,000 2,000,000
3.45%, tender 5/9/96, LOC Union Bank of Switzerland 1,800,000
1,800,000
10,610,000
NEW MEXICO - 0.4%
New Mexico Hsg. Fin. Auth. Single Family Mtg. Rev. Bonds 3.85%, tender
8/28/96 (b) 570,000 570,000
NEW YORK - 1.1%
New York City Gen. Oblig. RAN Series 1996 B, 4.75% 6/28/96 1,490,000
1,496,629
NORTH CAROLINA - 0.6%
Piedmont Triad Arpt. Auth. Spl. Facs. Rev. (Triad Int'l. Maintenance Corp.
Proj.)
Series 1989, 3.45%, LOC Mellon Bank, VRDN (b) 900,000 900,000
OKLAHOMA - 2.3%
Guymon Utils. Auth. Rev. (Seaboard Proj.) Series 1995, 3.45%, LOC SunTrust
Bank, VRDN (b) 3,300,000 3,300,000
PENNSYLVANIA - 7.1%
Bucks County Ind. Dev. Auth. Ind. Dev., VRDN (b):
(Associates Proj.) Series 1993, 3.80%, LOC Meridian Bank 1,360,000
1,360,000
(Double H Plastics Inc. Proj.) Series 1993, 3.80%, LOC Meridian Bank
2,445,000 2,445,000
MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
PENNSYLVANIA - CONTINUED
Carbon County Ind. Dev. Auth. Resource Recovery Bonds (Panther Creek
Partners Proj.)
Series B, 3.75%, tender 2/21/96, LOC Nat'l. Westminster (b) $ 1,060,000 $
1,060,000
Northumberland County Ind. Dev. Resource Recovery (Foster Wheeler Mt.
Carmel Inc.)
Series 1987 B, 3.25%, LOC Union Bank of Switzerland, VRDN (b) 200,000
200,000
Pennsylvania Econ. Dev. Fin. Auth. Ind. Dev. Rev. VRDN (b):
(ASK Foods, Inc.) Series A-1, 3.55%, LOC PNC Bank 485,000 485,000
(Port Erie Plastics Proj.) Series 1989 D9, 3.55%, LOC PNC Bank 55,000
55,000
Pennsylvania Higher Ed. Assistance Agcy. (Student Loan) Series 1988 A,
3.25%,
LOC Fuji Bank, VRDN (b) 1,200,000 1,200,000
Philadelphia School Dist. TRAN, Series 1995-96, 4.50% 6/28/96 1,000,000
1,002,144
Venango Ind. Dev. Auth. Resource Recovery Rev. Bonds (Scrubgrass Proj.)
Series 1990 B (b):
3.75%, tender 3/20/96, LOC Nat'l. Westminster Bank 1,300,000 1,300,000
3.75%, tender 3/25/96, LOC Nat'l. Westminster Bank 900,000 900,000
10,007,144
RHODE ISLAND - 2.0%
Rhode Island Hsg. & Mtg. Fin. Corp. Homeownership Opportunities Bonds (b):
Series 19 D, 3.55%, tender 1/30/97 600,000 600,000
Series 17 C, 4.40%, tender 2/1/96 750,000 750,000
Rhode Island Ind. Dev. Fac. Corp. Ind. Rev. (NFA Corp Proj.) 3.55%,
LOC Bank of Boston, VRDN (b) 1,500,000 1,500,000
2,850,000
SOUTH CAROLINA - 0.3%
Orangeburg County Solid Waste Disposal Fac. Rev. (SC Elec. & Gas Co.)
3.50%,
LOC NationsBank, VRDN (b) 500,000 500,000
SOUTH DAKOTA - 0.7%
South Dakota Hsg. Dev. Auth. Hsg. Rev. Bonds (Homeownership Mtg.)
Series E, 4.05%, tender 10/24/96 1,000,000 1,000,000
TENNESSEE - 5.4%
Cookeville Ind. Dev. Board Ind. Dev. Rev. (Delbar Products Inc. Proj.)
3.55%,
LOC PNC Bank, VRDN (b) 1,000,000 1,000,000
Memphis-Shelby County Arpt. Auth., CP (b):
3.80% 2/13/96, LOC Canadian Imperial Bank 1,000,000 1,000,000
3.75% 3/13/96, LOC Canadian Imperial Bank 1,700,000 1,700,000
Morristown Ind. Dev. Rev. (Lakeway Container Inc. Proj.) Series 1993,
3.55%,
LOC First Tennessee Bank NA, VRDN (b) 2,200,000 2,200,000
Tennessee Hsg. Dev. Agcy. Participating VRDN, Series PT-59B, 3.45%
(Liquidity Facility Credit Suisse) (b) (c) 1,000,000 1,000,000
Trenton Ind. Dev. Rev. (Dyersburg Fabrics Inc.) Series 1990, 3.45%,
LOC SunTrust Bank, VRDN (b) 685,000 685,000
7,585,000
MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
TEXAS - 10.3%
Brazos River Harbor Navigation Dist. of Brazoria County Bonds (Dow Chemical
Proj.)
Series 1988, 3.65%, tender 3/7/96 (b) $ 1,000,000 $ 1,000,000
Greater East Texas Higher Ed. Auth. Student Loan Rev., Series 1988 A, 3.30%
(AMBAC Insured) (BPA Citibank) VRDN (b) 1,000,000 1,000,000
Gulf Coast Waste Disp. Auth. Poll. Cont. Rev. (Amoco Oil Co.) 3.85%, VRDN
(b) 200,000 200,000
North Texas Higher Ed. Student Loan Rev., VRDN (b):
Series 1991 C, 3.25% (AMBAC Insured) (BPA Student Loan Mktg. Assoc.)
1,000,000 1,000,000
Series 1993 A, 3.25%, LOC Student Loan Mktg. Assoc. 1,300,000 1,300,000
Panhandle-Plains Higher Ed. Auth. Student Loan Rev. Bonds Series 1992 A,
3.20%,
tender 3/3/96, LOC Student Loan Mktg. Assoc. (b) 2,200,000 2,200,000
San Antonio Hsg. Fin. Auth. Rev. (Braesview Apts. Proj.) 3.25%,
LOC Swiss Bank Corp.,VRDN (b) 3,200,000 3,200,000
South Texas Higher Ed. Auth. Student Loan Rev. Bonds Series 1995, 3.20%,
LOC Student Loan Mktg. Assoc., VRDN (b) 1,300,000 1,300,000
Texas Gen. Oblig. TRAN Series 1995 A, 4.75% 8/30/96 2,400,000 2,409,609
Texas State College Student Loan Bonds Series 1992, 8.375% 8/1/96 (b)
890,000 908,585
14,518,194
VIRGINIA - 2.1%
Mecklenburg County Ind. Auth. (American Bldgs. Co. Proj.) 3.60%,
LOC Lasalle Nat'l. Bank, VRDN (b) 1,530,000 1,530,000
Virginia Hsg. Dev. Auth. Participating VRDN, Series PA-80B, 3.40%
(Liquidity Facility Merrill Lynch & Co.) (b) (c) 1,480,000 1,480,000
3,010,000
WASHINGTON - 9.2%
Algona Econ. Dev. Corp. Ind. Rev. (Aitchison Family Partnership) Series
1992, 3.50%,
LOC Wells Fargo Bank, VRDN (b) 2,710,000 2,710,000
Clark County Pub. Util. Dist. #1 Water Rev. Rfdg. Bonds, 4.40% 1/1/97
(AMBAC Insured) 500,000 504,360
Port of Grays Harbor Ind. Dev. Solid Waste Fac. Rev. (Pacific Veneer,
Weyerhaeuser Co.)
Series1993, 3.45%, VRDN 2,500,000 2,500,000
Port Longview Ind. Dev. Corp. Solid Waste Disp. Rev. (Weyerhaeuser Co.
Proj.)
Series 1993, 3.40%, VRDN 2,000,000 2,000,000
Washington Hsg. Fin. Comm. Bonds 4.10%, tender 6/1/96 (FGIC Insured) (b)
246,000 246,000
Washington Pub. Pwr. Supply Sys. Rev. Bonds (Nuclear Proj. #3) 4.10% 7/1/96
1,000,000 1,002,643
Washington Student Loan Fin. Assoc. Rev., Series 1988 A, 3.15%,
LOC Nat'l. Westminster Bank, VRDN (b) 4,000,000 4,000,000
12,963,003
WEST VIRGINIA - 4.3%
Marion County Solid Wst. Disp. Rev. (Grant Town Cogeneration Proj.)
Series 1990 C,3.25%, LOC Nat'l. Westminster Bank, VRDN (b) 2,100,000
2,100,000
West Virginia Pub. Energy Auth. Energy Rev. Bonds (Morgantown Energy
Assoc.) (b):
3.65%, tender 3/8/96, LOC Swiss Bank Corp. 1,000,000 1,000,000
3.75%, tender 3/20/96, LOC Swiss Bank Corp. 1,400,000 1,400,000
Wood County Ind. Dev. Rev. (AGA Gas Inc. Proj.) Series 1988, 4.05%,
LOC Svenska Handelsbanken, VRDN (b) 1,500,000 1,500,000
6,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
WISCONSIN - 3.4%
Appleton Ind. Dev. Rev. (Pensar Corp. Proj.) Series 1993, 3.40%
LOC Bank One, Milwaukee, VRDN (b) $ 960,000 $ 960,000
City of Eau Claire Solid Waste Disposal Rev. (Pope & Talbot Proj.) Series
1994, 3.45%,
LOC Wachovia Bank, VRDN (b) 2,000,000 2,000,000
Racine Ind. Dev. Rev. (Burlington Graphic Sys.) Series 1994, 3.40%,
LOC Bank One, Milwaukee, VRDN (b) 1,780,000 1,780,000
4,740,000
MULTIPLE STATES - 1.5%
Clipper Participating VRDN, Series 1995 1, 3.40%
(Liquidity Facility State Street Bank) (b) (c) 2,195,000 2,195,000
TOTAL INVESTMENTS - 100% $ 141,213,734
Total Cost for Income Tax Purposes $ 141,213,734
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) Private activity obligations whose interest is subject to the federal
alternative minimum tax for individuals.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
(d) Security purchased on a delayed delivery basis.
(e) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Michigan Hsg. Dev.
Auth. Participating
VRDN 12/14/95 $ 1,000,000
INCOME TAX INFORMATION
At July 31, 1995, the fund had a capital loss carryforward of approximately
$10,000 of which $3,000, $2,000 and $5,000 will expire on July 31, 2000,
2001 and 2002, respectively.
CAPITAL RESERVES: MUNICIPAL MONEY MARKET PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JANUARY 31, 1996 (UNAUDITED)
219.ASSETS 220. 221.
222.Investment in securities, at value - See accompanying schedule 223. $ 141,213,734
224.Cash 225. 500,288
226.Interest receivable 227. 938,616
228. 229.TOTAL ASSETS 230. 142,652,638
231.LIABILITIES 232. 233.
234.Payable for investments purchased 235.
236. Delayed delivery $ 1,008,190 237.
238. Regular delivery 4,325,618 239.
240.Distributions payable 7,132 241.
242.Accrued management fee 48,926 243.
244.Other payables and accrued expenses 81,813 245.
246. 247.TOTAL LIABILITIES 248. 5,471,679
249.250.NET ASSETS 251. $ 137,180,959
252.Net Assets consist of: 253. 254.
255.Paid in capital 256. $ 137,195,277
257.Accumulated net realized gain (loss) on investments 258. (14,318)
259.260.NET ASSETS, for 137,195,277 shares outstanding 261. $ 137,180,959
262.263.NET ASSET VALUE, offering price and redemption price per share 264. $1.00
($137,180,959 (divided by) 137,195,277 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED JANUARY 31, 1996 (UNAUDITED)
265.266.INTEREST INCOME 267. $ 2,592,281
268.EXPENSES 269. 270.
271.Management fee $ 326,631 272.
273.Transfer agent, accounting and custodian fees and expenses 164,356 274.
275.Distribution fees 228,641 276.
277.Non-interested trustees' compensation 357 278.
279.Registration fees 72,848 280.
281.Audit 12,145 282.
283.Legal 300 284.
285.Miscellaneous 612 286.
287. Total expenses before reductions 805,890 288.
289. Expense reductions (159,161) 646,729
290.291.NET INTEREST INCOME 292. 1,945,552
293.294.NET REALIZED GAIN (LOSS) ON INVESTMENTS 295. (4,298)
296.297.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 298. $ 1,941,254
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR
ENDED ENDED
JANUARY 31, 1996 JULY 31, 1995
(UNAUDITED)
299.INCREASE (DECREASE) IN NET ASSETS
300.Operations $ 1,945,552 $ 3,455,505
Net interest income
301. Net realized gain (loss) (4,298) 2,903
302. 1,941,254 3,458,408
303.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
304.Distributions to shareholders from net interest income (1,945,552) (3,455,505)
305.Share transactions at net asset value of $1.00 per share 390,982,951 442,429,728
Proceeds from sales of shares
306. Reinvestment of distributions from net interest income 1,886,077 3,324,065
307. Cost of shares redeemed (379,503,101) (438,434,489)
308.309. 13,365,927 7,319,304
NET INCREASE (DECREASE) IN NET ASSETS AND ASSETS RESULTING FROM SHARE TRANSACTIONS
310. 13,361,629 7,322,207
311.TOTAL INCREASE (DECREASE) IN NET ASSETS
312.NET ASSETS 313. 314.
315. Beginning of period 123,819,330 116,497,123
316. End of period $ 137,180,959 $ 123,819,330
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, NOVEMBER 29, 1990
ENDED (COMMENCEMENT
JANUARY 31, 1996 OF OPERATIONS) TO
JULY 31,
(UNAUDITED) 1995 1994 1993 1992 1991
317.SELECTED PER-SHARE DATA
318.Net asset value,
beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
319.Income from Investment
Operations .015 .029 .018 .019 .031 .028
Net interest income
320.Less Distributions (.015) (.029) (.018) (.019) (.031) (.028)
From net interest income
321.Net asset value,
end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
322.TOTAL RETURN B, C 1.51% 2.94% 1.80% 1.96% 3.14% 2.82%
323.RATIOS AND SUPPLEMENTAL DATA
324.Net assets, end of
period (000 $ 137,181 $ 123,819 $ 116,497 $ 116,274 $ 68,497 $ 19,578
omitted)
325.Ratio of expenses to
average net .99%A .99% .98% .95% .95% .95%A
assets ,D D D D D ,D
326.Ratio of net interest
income to 2.98%A 2.89% 1.78% 1.92% 2.89% 3.97%A
average
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED .
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D FMR VOLUNTARILY AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES
DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Capital Reserves: Money Market Portfolio, U.S. Government Portfolio and
Municipal Money Market Portfolio (the funds) are funds of Daily Money Fund
(the trust). The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Delaware business trust. Each fund is authorized to
issue an unlimited number of shares. The financial statements have been
prepared in conformity with generally accepted accounting principles which
permit management to make certain estimates and assumptions at the date of
the financial statements. 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 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.
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. FMR, the funds' investment adviser, 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 and Municipal Money Market funds
are permitted to invest in securities that are subject to legal or
contractual restrictions on resale. These securities generally may be
resold in transactions exempt from registration or to the public if the
securities are registered. Disposal of these securities may involve
time-consuming negotiations and expense, and prompt sale at an acceptable
price may be difficult. At the end of the period, restricted securities
(excluding 144A issues) amounted to $1,000,000 or 0.7% of net assets for
the Municipal Money Market fund.
3. JOINT TRADING ACCOUNT.
At the end of the period, the U.S. Government fund had 20% or more of its
total investments in repurchase agreements through a joint trading account.
These repurchase agreements were with entities whose creditworthiness has
been reviewed and found satisfactory by FMR. The maturity values of the
joint trading account investments were $24,565,027 at 5.90% and
$128,021,001 at 5.91% The investments in repurchase agreements through the
joint trading account are summarized as follows:
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING
DATED JANUARY 31, 1996, DUE FEBRUARY 1,1996 AT 5.90%
Number of dealers or banks 4
Maximum amount with one dealer or bank 41.7%
Aggregate principal amount of agreements $480,000,000
Aggregate maturity amount of agreements $480,078,694
Aggregate market value of collateral $490,903,041
Maturity dates of collateral 5/30/96 to 2/15/19
Coupon rates of collateral 0.0% to 14.0%
DATED JANUARY 31, 1996, DUE FEBRUARY 1,1996 AT 5.91%
Number of dealers or banks 12
Maximum amount with one dealer or bank 30.4%
Aggregate principal amount of agreements $6,569,596,000
Aggregate maturity amount of agreements $6,570,673,864
Aggregate market value of collateral $6,705,869,261
Maturity dates of collateral 2/15/96 to 2/15/19
Coupon rates of collateral 0.0% to 15.75%
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a fee that
is computed daily at an annual rate of .50% of the fund's average net
assets.
SUB-ADVISER FEE. As each fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fees are paid prior to any voluntary
expense reimbursements which may be in effect.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, each
fund is authorized to pay its distributor, National Financial Services
Corporation (the Distributor), an affiliate of FMR, a monthly distribution
fee at an annual rate of .35% of its average net assets. The Distributor
may pay all or a portion of the fee to securities dealers or banks
(Qualified Recipients) that have selling agreements with each fund. In
addition, FMR may use its resources to pay Qualified Recipients who provide
shareholder support or distribution services at a maximum annual rate of up
to .25% of each fund's average net assets. Qualified Recipients, including
the Distributor acting in the capacity of a Qualified Recipient, may at
their discretion, retain any portion of their compensation and reallocate
the balance to their correspondents. For the period, FMR made payments
under the Plans in the amount of $1,286,124, $245,412 and $164,511 for the
Money Market, U.S. Government and Municipal Money Market funds,
respectively. Of the fees paid by the funds and FMR for the period, the
Distributor has reallocated to third parties $2,537,308, $513,549 and
$318,056 for the Money Market, U.S. Government and Municipal Money Market
funds, respectively.
TRANSFER AGENT AND ACCOUNTING FEES. Fidelity Investments Institutional
Operations Company (FIIOC), an affiliate of FMR, is the transfer, dividend
disbursing and shareholder servicing agent for the Money Market and U.S.
Government funds. UMB Bank n.a. (UMB) is the custodian and transfer and
shareholder servicing agent for the Municipal Money Market fund. UMB has
entered into a sub-contract with FIIOC to perform the activities associated
with the Municipal Money Market fund's transfer and shareholder servicing
agent functions. FIIOC receives
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES - CONTINUED
account fees and asset-based fees that vary according to account size and
type of account. FIIOC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. For the period, FIIOC
received transfer and shareholder servicing agent fees amounting to
$141,023 for the Municipal Money Market fund.
For the period, the transfer agent fees were equivalent to an annualized
rate of .27%, .22% and .22% of average net assets for the Money Market,
U.S. Government and Municipal Money Market funds, respectively.
Fidelity Service Co. (FSC), an affiliate of FMR, maintains the accounting
records for the Money Market and U.S. Government funds. UMB also has a
sub-contract with FSC to maintain the Municipal Money Market fund's
accounting records. The accounting fee is based on the level of average net
assets for the month plus out-of-pocket expenses. For the period, FSC
received accounting fees amounting to $15,506 for the Municipal Money
Market fund.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the funds' operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses). For the period, the reimbursement reduced expenses by $979,141,
$280,785 and $159,161 for the Money Market, U.S. Government and Municipal
Money Market funds, respectively.
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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
Burnell Stehman, VICE PRESIDENT
John Todd, VICE PRESIDENT
Deborah F. Watson, VICE PRESIDENT
Sarah H. Zenoble, VICE PRESIDENT
Arthur S. Loring, SECRETARY
Kenneth A. Rathgeber, TREASURER
Thomas D. Maher, ASSISTANT VICE PRESIDENT
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
and
UMB Bank, n.a.
Kansas City, MO
CUSTODIANS
The Bank of New York
New York, NY
and
UMB Bank, n.a. (MUNICIPAL MONEY MARKET PORTFOLIO)
Kansas City, MO
* INDEPENDENT TRUSTEES
