THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST:
CASH PORTFOLIO
TERM PORTFOLIO
SUPPLEMENT TO THE PROSPECTUS AND THE STATEMENT OF ADDITIONAL INFORMATION
DATED NOVEMBER 1, 1995
Until such time as shareholders of each fund approve amendments to the fee
schedules for each fund's Management Contract and Distribution and Service
Plan, the information contained herein replaces that found in the
applicable sections in the prospectus and statement of additional
information on the pages specified below.
The fee table on page P-3 of the Prospectus is replaced by the following:
The following are projections based on historical expenses of each fund,
and are calculated as a percentage of average net assets of each fund.
Cash Term
Portfoli Portfoli
o o
Management fee (after waiver)* 0.19% 0.22%
12b-1 fee (Distribution Fee) 0.16% 0.14%
Other expenses 0.01% 0.01%
Total operating expenses 0.36% 0.37%
* THE RATE FOR MANAGEMENT FEES REPRESENTS THE NET RATE RETAINED BY FMR
AFTER PAYMENT MADE TO THE DISTRIBUTOR. THE MANAGEMENT FEE FOR CASH
PORTFOLIO AND TERM PORTFOLIO BEFORE PAYMENTS MADE TO THE DISTRIBUTOR BY FMR
IS 0.35% AND 0.36%, RESPECTIVELY. EFFECTIVE NOVEMBER 1, 1995, FMR
VOLUNTARILY AGREED TO WAIVE ITS MANAGEMENT FEE TO THE EXTENT IT EXCEEDS THE
PROPOSED MANAGEMENT FEE. IF THIS AGREEMENT WERE NOT IN EFFECT, THE
MANAGEMENT FEE FOR CASH PORTFOLIO AND TERM PORTFOLIO AFTER PAYMENTS MADE TO
THE DISTRIBUTOR BY FMR WOULD HAVE BEEN 0.22% AND 0.26%, RESPECTIVELY, AND
BEFORE PAYMENTS MADE TO THE DISTRIBUTOR BY FMR WOULD HAVE BEEN 0.38% AND
0.40%, RESPECTIVELY.
The expense table example on page P-4 of the Prospectus is replaced by the
following:
EXPENSE TABLE EXAMPLE: You would pay the following expenses on a $1,000
investment assuming a 5% annual return and full redemption, at the end of
each time period:
1 3 5 10
Year Years Years Years
Cash Portfolio $4 $12 $20 $46
Term Portfolio $4 $12 $21 $47
The third sentence in the first paragraph under the heading "Management
Fee" on page P-13 of the Prospectus is replaced by the following:
Each fund pays an annual management fee according to the following
schedule: 0.41% of average net assets through $100 million; 0.40% of
average net assets in excess of $100 million through $200 million; 0.39% of
average net assets in excess of $200 million through $800 million; and
0.38% of average net assets in excess of $800 million. Effective November
1, 1995, FMR voluntarily agreed to waive its management fee to the extent
it exceeds the proposed management fee set forth in the following schedule:
0.365% of average net assets through $400 million; 0.360% of average net
assets in excess of $400 million through $800 million; 0.355% of average
net assets in excess of $800 million through $1.2 billion; 0.350% of
average net assets in excess of $1.2 billion through $1.6 billion; 0.340%
of average net assets in excess of $1.6 billion through $2.0 billion; and
0.330% of average net assets in excess of $2.0 billion.
The fourth sentence of the third paragraph under the heading "Other
Expenses" on pages P-13 and P-14 of the Prospectus is replaced by the
following:
FMR currently pays Sterling, through FDC, monthly on behalf of each fund
according to the following schedule: 0.14% of average net assets through
$100 million; 0.15% of average net assets in excess of $100 million through
$200 million; 0.16% of average net assets in excess of $200 million through
$800 million; and 0.17% of average net assets in excess of $800 million.
The first sentence of the sixth paragraph under the heading "Management
Contracts" on pages S-19 and S-20 of the Statement of Additional
Information is replaced by the following:
For the services of FMR under each contract, each fund pays FMR a monthly
management fee at the annual rate of 0.41% of average net assets through
$100 million; 0.40% of average net assets in excess of $100 million through
$200 million; 0.39% of average net assets in excess of $200 million through
$800 million; and 0.38% of average net assets in excess of $800 million
throughout the month. Effective November 1, 1995, FMR voluntarily agreed to
waive its management fee to the extent it exceeds the proposed management
fee set forth in the following schedule: 0.365% of average net assets
through $400 million; 0.360% of average net assets in excess of $400
million through $800 million; 0.355% of average net assets in excess of
$800 million through $1.2 billion; 0.350% of average net assets in excess
of $1.2 billion through $1.6 billion; 0.340% of average net assets in
excess of $1.6 billion through $2.0 billion; and 0.330% of average net
assets in excess of $2.0 billion.
The third paragraph under the heading "Distribution and Service Plans" on
page S-21 of the Statement of Additional Information is replaced by the
following:
Pursuant to the Plans, from its management fees, FMR pays Sterling, through
FDC, a distribution fee according to the following schedule: 0.14% of
average net assets through $100 million; 0.15% of average net assets in
excess of $100 million through $200 million; 0.16% of average net assets in
excess of $200 million through $800 million; and 0.17% of average net
assets in excess of $800 million.
The disclosure that this sticker is meant to replace on pages P-3, P-4,
P-13, P-14, S-19, S-20 and S-21 of the Prospectus and Statement of
Additional Information will become effective on February 1, 1996 (the first
day of the first month following shareholder approval), if shareholder
approval of the proposed changes in each fund's management fee and 12b-1
fee by a majority vote of each fund's shareholders is obtained prior to
that date.
