THE
N
C
ORTH
AROLINA
CAPITAL MANAGEMENT TRUST
CASH PORTFOLIO
TERM PORTFOLIO
ANNUAL REPORT
JUNE 30, 1995
NC-ANN0895
2635
CONTENTS
<TABLE>
<CAPTION>
<S> <C> <C>
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST:
CASH PORTFOLIO:
PERFORMANCE 3 How the fund has done over time.
FUND TALK 5 The manager's review of the fund's performance,
strategy, and outlook.
INVESTMENTS 6 A complete list of the fund's investments with their
market values.
FINANCIAL STATEMENTS 9 Statements of assets and liabilities, operations,
and changes in net assets, as well as financial
highlights.
TERM PORTFOLIO:
PERFORMANCE 12 How the fund has done over time.
FUND TALK 15 The manager's review of the fund's performance,
strategy, and outlook.
INVESTMENTS 16 A complete list of the fund's investments with their
market values.
FINANCIAL STATEMENTS 17 Statements of assets and liabilities, operations,
and changes in net assets, as well as financial
highlights.
NOTES 21 Notes to the financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS 23 The auditors' opinion.
</TABLE>
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION.
SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT
TO INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION NOR STERLING
CAPITAL DISTRIBUTORS, INC. IS A BANK.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - CASH PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, and reinvestment of its dividends (or income). Yield
measures the income paid by a fund. Since a money market fund tries to
maintain a $1 share price, yield is an important measure of performance. If
Fidelity had not reimbursed certain expenses, the past five and 10 year
total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Cash Portfolio 5.28% 25.53% 80.72%
Average All Taxable Money Market Fund 4.99% 24.19% 75.81%
Consumer Price Index 3.04% 17.40% 41.73%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years or ten years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. To measure how the
fund's performance stacked up against its peers, you can compare it to the
average all taxable money market fund, which reflects the performance of
741 taxable money market funds with similar objectives tracked by
IBC/Donoghue over the past 12 months. Comparing the fund's performance to
the consumer price index (CPI) helps show how your fund did compared to
inflation. (The periods covered by the CPI and IBC/Donoghue numbers are the
closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Cash Portfolio 5.28% 4.65% 6.10%
Average All Taxable Money Market Fund 4.99% 4.43% 5.80%
Consumer Price Index 3.04% 3.26% 3.55%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
6/28/94 9/27/94 12/27/94 03/28/95 6/27/95
4.01% 4.49% 5.54% 5.79% 5.70%
Cash Portfolio
Average All Taxable 3.64% 4.20% 5.12% 5.53% 5.46%
Money Market Fund
6/28/94 10/2/94 12/28/94 3/29/95 6/28/95
2.41% 2.50% 2.74% 2.89% 2.87%
MMDA
Row: 1, Col: 1, Value: 4.01
Row: 1, Col: 2, Value: 3.64
Row: 1, Col: 3, Value: 2.41
Row: 2, Col: 1, Value: 4.49
Row: 2, Col: 2, Value: 4.2
Row: 2, Col: 3, Value: 2.5
Row: 3, Col: 1, Value: 5.54
Row: 3, Col: 2, Value: 5.119999999999999
Row: 3, Col: 3, Value: 2.74
Row: 4, Col: 1, Value: 5.79
Row: 4, Col: 2, Value: 5.53
Row: 4, Col: 3, Value: 2.89
Row: 5, Col: 1, Value: 5.7
Row: 5, Col: 2, Value: 5.46
Row: 5, Col: 3, Value: 2.87
6% -
5% -
4% -
3% -
2% -
1% -
0%
Cash Portfolio
Average All Taxable
Money Market Fund
MMDA
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. You can
compare these yields to the average all taxable money market fund and the
average bank money market deposit account (MMDA). Figures for the average
all taxable money market fund
are from IBC/Donoghue. The MMDA average is supplied by BANK RATE
MONITOR.(Trademark)
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS
WILL VARY, AND REFLECT PAST RESULTS RATHER THAN
PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
There are some important differences between
a bank money market deposit account (MMDA)
and a money market fund. First, the U.S.
government neither insures nor guarantees a
money market fund. In fact, there is no
assurance that a money market fund will
maintain a $1 share price. Second, a money
market fund returns to its shareholders income
earned by the fund's investments after
expenses. This is in contrast to banks, which
set their MMDA rates periodically based on
current interest rates, competitors' rates, and
internal criteria.
(checkmark)
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - CASH PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An Interview with
Burnell Stehman:
Portfolio Manager
of The
North Carolina
Capital
Management
Trust:
Cash Portfolio
Q. BURNIE, HOW DID THE CASH PORTFOLIO PERFORM?
A. The fund's seven-day yield on June 30, 1995 was 5.70%, compared to 4.02%
a year ago. For the year ended June 30, 1995, the fund's total return was
5.28%. That compares favorably with the average total return of 4.99%
during the same period for the average all taxable money market funds,
according to IBC/Donoghue.
Q. WHAT CAN YOU TELL US ABOUT THE INTEREST RATE ENVIRONMENT?
A. We haven't seen such a dramatic shift in the middle of the fund's fiscal
year since the late 1980s. Throughout the second half of 1994, everything
the Federal Reserve did was designed to slow down the pace of economic
growth and prevent an outbreak of inflation. As recently as the fourth
quarter of 1994, when growth surged ahead at an annual rate of more than
5%, it looked as if the Fed still had a lot of work to do. But then very
quickly we began to see signs of weakness throughout the economy. The
first-quarter 1995 growth rate was slightly above the Fed's
non-inflationary trend rate of 2.5%, but there was no denying that the
economy had slowed down dramatically. In fact, by early summer, some
economists were speculating that the Fed had overshot its goal of a soft
landing for the economy, and began to have concerns that an extended
downturn could lead to a recession.
Q. WHAT KIND OF STRATEGIC ADJUSTMENTS DID YOU MAKE DURING THE PERIOD?
A. As long as the economy was heating up and the Fed was raising interest
rates, I positioned the fund very defensively. My aim was to keep pace with
current rates and maintain as much flexibility as I could. By the end of
December, the fund's average maturity was around 25 days. Later in the
period, as signs of economic weakness accumulated and prospects for an
eventual Fed rate cut improved, I began buying longer-term securities and
gradually extending the fund's average maturity. By the end of June, I had
the fund out around 55 days.
Q. GIVEN THE CURRENT RATE ENVIRONMENT, DO YOU HAVE PLANS TO EXTEND THE
FUND'S AVERAGE MATURITY FURTHER IN THE MONTHS AHEAD?
A. I would characterize the fund's average maturity at the end of the
period as being toward the aggressive side of neutral. If I thought we were
headed for a recession, I might want to extend the fund further, but that
seems unlikely. Among the historical prerequisites for a recession are high
inflation, tight credit conditions and an inverted yield curve, with
longer-term securities yielding less than shorter-term securities. None of
those conditions currently apply. The upshot is, while I may want to extend
the fund slightly, I probably won't go much beyond 60 days until the
economic picture becomes clearer.
FUND FACTS
GOAL: Cash Portfolio seeks to obtain as high a
level of current income as is consistent with the
preservation of capital and liquidity, and to
maintain a constant net asset value per share
of $1.00
START DATE: September 2, 1982
SIZE: as of June 30, 1995, more than $1.5
billion
MANAGER: Burnell Stehman, since 1984;
manager, Fidelity Daily Income Trust, since
1986;
Fidelity Money Market Trust - Domestic, since
1992; Fidelity Institutional Cash Portfolios -
Domestic, since 1992; vice president, FMR
Texas, since 1989; previously managed
Massachusetts Municipal Depository Trust and
Fidelity Variable Insurance funds; joined
Fidelity in 1979
(checkmark)
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - CASH PORTFOLIO
INVESTMENTS JUNE 30, 1995
Showing Percentage of Total Value of Investments
BANKERS' ACCEPTANCES - 4.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NationsBank of Florida
8/24/95 6.12% $ 25,000,000 $ 24,775,000
10/2/95 6.22 3,493,336 3,438,737
10/23/95 5.85 5,000,000 4,909,116
NationsBank of Georgia
7/17/95 6.01 5,000,000 4,986,778
8/1/95 6.00 4,700,000 4,675,919
8/11/95 6.00 5,477,000 5,439,948
NationsBank of Tennessee
8/8/95 6.09 2,000,000 1,987,333
Wachovia Bank of North Carolina, N.A.
8/30/95 5.97 20,000,000 19,804,000
TOTAL BANKERS' ACCEPTANCES 70,016,831
COMMERCIAL PAPER (DAGGER) - 82.8%
AT&T Capital Corp.
7/25/95 6.09 3,000,000 2,988,000
AVCO Financial Services, Inc.
7/25/95 6.02 20,000,000 19,920,666
7/27/95 6.02 10,000,000 9,957,028
8/22/95 6.05 10,000,000 9,914,056
9/5/95 6.02 18,000,000 17,804,640
9/11/95 5.85 15,000,000 14,827,200
American Express Credit Corp.
7/3/95 6.09 15,000,000 14,994,916
7/3/95 6.10 10,000,000 9,996,611
8/14/95 6.20 10,000,000 9,925,751
American General Finance Corp.
7/26/95 6.09 25,000,000 24,895,833
8/28/95 6.14 10,000,000 9,903,173
9/19/95 5.85 15,000,000 14,808,334
American Telephone & Telegraph Co.
7/25/95 6.06 3,500,000 3,486,070
8/1/95 6.00 10,000,000 9,949,023
8/2/95 6.28 15,000,000 14,918,266
8/7/95 6.43 25,000,000 24,839,924
10/30/95 5.96 14,500,000 14,216,844
Asset Securitization Cooperative Corporation
8/7/95 5.99 25,000,000 24,847,118
Associates Corp. of North America
8/4/95 5.99 15,000,000 14,915,850
8/11/95 5.96 20,000,000 19,865,611
8/30/95 5.83 25,000,000 24,760,417
9/1/95 5.98 5,000,000 4,949,109
9/5/95 6.07 10,000,000 9,890,917
COMMERCIAL PAPER (DAGGER) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Banc One Corp.
8/7/95 6.04% $ 10,000,000 $ 9,938,848
9/22/95 6.00 10,000,000 9,863,972
10/25/95 6.10 20,000,000 19,617,845
Bear Stearns Cos., Inc.
7/31/95 6.03 10,000,000 9,950,417
7/31/95 6.11 4,000,000 3,979,933
Beneficial Corp.
9/18/95 5.99 6,000,000 5,922,317
CIESCO, L.P.
7/19/95 6.09 5,000,000 4,985,000
7/27/95 6.02 15,000,000 14,935,541
8/16/95 5.96 8,908,000 8,840,843
8/18/95 6.02 20,000,000 19,841,867
CIT Group Holdings, Inc.
9/21/95 6.20 5,000,000 4,931,211
9/28/95 6.22 23,000,000 22,655,990
Corporate Asset Funding Co., Inc.
7/19/95 6.01 15,000,000 14,955,376
8/3/95 5.86 10,000,000 9,946,834
8/8/95 5.86 20,000,000 19,877,555
8/23/95 5.96 5,000,000 4,956,790
Dean Witter, Discover & Co.
7/10/95 5.93 10,500,000 10,484,512
7/21/95 6.01 25,000,000 24,917,361
Deere & Co.
8/11/95 5.94 15,000,000 14,899,550
du Pont (E.I.) de Nemours & Co.
7/25/95 6.06 6,000,000 5,976,080
7/27/95 6.06 25,000,000 24,892,209
11/10/95 5.86 15,000,000 14,684,851
11/17/95 5.87 10,000,000 9,778,758
Electronic Data Systems Corp.
8/15/95 5.98 16,428,000 16,306,432
8/15/95 6.00 20,000,000 19,851,500
Ford Motor Credit Corp.
7/24/95 6.04 10,000,000 9,961,858
7/24/95 6.08 10,000,000 9,961,730
8/3/95 6.09 9,000,000 8,950,500
8/9/95 6.21 20,000,000 19,868,267
9/5/95 6.03 2,000,000 1,978,257
9/18/95 5.95 10,000,000 9,871,406
General Electric Capital Corp.
7/6/95 6.30 6,761,000 6,755,225
7/18/95 6.31 10,000,000 9,970,958
8/29/95 6.14 15,000,000 14,852,255
9/6/95 6.02 20,000,000 19,780,389
10/2/95 6.07 12,000,000 11,816,170
General Electric Corp.
9/7/95 5.92 10,000,000 9,889,500
9/8/95 5.92 15,000,000 14,831,812
COMMERCIAL PAPER (DAGGER) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Golden Peanut Co.
8/4/95 6.01% $ 1,000,000 $ 994,361
Goldman Sachs Group, L.P. (The)
9/18/95 6.02 10,000,000 9,870,308
Household Finance Corp.
7/21/95 6.00 6,000,000 5,980,151
9/14/95 6.00 6,000,000 5,926,125
IBM Corp.
7/7/95 6.15 20,000,000 19,979,834
7/25/95 5.99 10,000,000 9,960,334
9/1/95 5.97 7,000,000 6,928,872
John Deere Capital Corp.
10/31/95 5.85 10,000,000 9,805,817
Merrill Lynch & Co., Inc.
8/10/95 6.06 20,000,000 19,867,333
MetLife Funding, Inc.
7/11/95 6.01 20,000,000 19,966,944
7/28/95 5.90 4,000,000 3,982,450
7/28/95 6.07 3,310,000 3,295,154
9/1/95 5.91 25,000,000 24,748,126
Monsanto Co.
8/16/95 6.39 5,000,000 4,960,389
9/11/95 5.96 9,600,000 9,487,296
9/14/95 6.06 5,000,000 4,938,021
Morgan (J.P.) & Co. Inc.
7/24/95 6.00 25,000,000 24,905,125
10/30/95 6.24 20,000,000 19,593,306
Morgan Stanley Group, Inc.
8/7/95 6.01 10,000,000 9,938,950
10/6/95 5.91 10,000,000 9,843,183
National Rural Util. Coop. Fin. Corp.
9/7/95 5.98 1,500,000 1,483,284
9/15/95 5.99 4,800,000 4,740,213
NationsBank Corp.
7/17/95 6.11 2,000,000 1,994,649
8/22/95 6.01 20,000,000 19,828,977
New Center Asset Trust
7/17/95 6.15 10,000,000 9,973,067
9/19/95 5.88 22,000,000 21,716,933
Norfolk Southern Corp.
8/4/95 6.07 10,000,000 9,943,523
9/11/95 5.91 5,000,000 4,941,800
Norwest Corp.
8/29/95 6.01 6,000,000 5,941,787
Penny (JC) Funding Corp.
7/13/95 6.01 25,000,000 24,950,417
Philip Morris Cos., Inc.
8/1/95 6.09 5,000,000 4,974,167
8/10/95 5.99 10,000,000 9,934,111
Pitney Bowes Inc.
9/21/95 5.83 17,000,000 16,777,347
COMMERCIAL PAPER (DAGGER) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Preferred Receivables Funding Corp.
7/6/95 5.98% $ 2,650,000 $ 2,647,810
7/12/95 5.92 12,050,000 12,028,313
8/3/95 6.03 8,975,000 8,925,720
Principal Mutual Life Insurance Co.
7/5/95 5.96 5,000,000 4,996,704
7/6/95 5.96 5,000,000 4,995,882
SYSCO Corp.
7/18/95 6.10 5,000,000 4,985,810
8/2/95 6.09 10,000,000 9,946,667
Transamerica Financial Corp.
8/1/95 6.09 15,000,000 14,922,500
9/19/95 5.94 3,500,000 3,454,500
USAA Capital Corp.
7/21/95 6.02 30,000,000 29,900,833
U.S.L. Capital, Inc.
7/7/95 6.01 7,300,000 7,292,736
7/10/95 5.90 5,000,000 4,992,662
7/13/95 6.01 10,000,000 9,980,133
7/14/95 5.92 12,000,000 11,974,520
U.S. West Communications
7/28/95 6.06 22,000,000 21,901,495
TOTAL COMMERCIAL PAPER 1,317,173,915
FEDERAL AGENCIES - 10.6%
FEDERAL FARM CREDIT BANK - DISCOUNT NOTES - 0.4%
7/12/95 5.92 6,360,000 6,348,612
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 4.6%
7/5/95 5.90 11,165,000 11,157,744
7/20/95 5.94 15,000,000 14,953,530
9/5/95 5.78 3,500,000 3,463,426
9/11/95 5.90 44,400,000 43,884,072
73,458,772
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 5.6%
8/9/95 6.37 2,700,000 2,681,953
8/31/95 6.20 2,700,000 2,672,550
8/31/95 6.27 8,460,000 8,372,844
9/14/95 5.88 10,000,000 9,879,167
9/28/95 6.00 50,000,000 49,274,403
10/20/95 5.80 15,400,000 15,130,057
88,010,974
TOTAL FEDERAL AGENCIES 167,818,358
REPURCHASE AGREEMENTS - 2.2%
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account
(U.S. Treasury Obligations)
dated 6/30/95 due 7/3/95
At 6.15% $ 35,469,158 $ 35,451,000
TOTAL INVESTMENTS - 100% $ 1,590,460,104
Total Cost for Income Tax Purposes $ 1,590,460,104
(dagger) Cash Portfolio only purchases commercial paper with the highest
possible rating from at least one nationally recognized rating service. A
substantial portion of Cash Portfolio's investments are in commercial paper
of banks, finance companies and companies in the securities industry.
INCOME TAX INFORMATION
At June 30, 1995, Cash Portfolio had a capital loss carryforward of
approximately $54,000 which will expire on June 30, 2002.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - CASH PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995
1.ASSETS 2. 3.
4.Investment in securities, at value (including repurchase agreements of $35,451,000) - 5. $ 1,590,460,104
See accompanying schedule
6.Cash 7. 11,583
8.Interest receivable 9. 6,053
10. 11.TOTAL ASSETS 12. 1,590,477,740
13.LIABILITIES 14. 15.
16.Distributions payable $ 871,978 17.
18.Accrued management fee 504,696 19.
20. 21.TOTAL LIABILITIES 22. 1,376,674
23.24.NET ASSETS 25. $ 1,589,101,066
26.Net Assets consist of: 27. 28.
29.Paid in capital 30. $ 1,589,133,210
31.Accumulated net realized gain (loss) on investments 32. (32,144)
33.34.NET ASSETS, for 1,589,133,210 shares outstanding 35. $ 1,589,101,066
36.37.NET ASSET VALUE, offering price and redemption price per share 38. $1.00
($1,589,101,066 (divided by) 1,589,133,210 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JUNE 30, 1995
39.40.INTEREST INCOME 41. $ 81,522,484
42.EXPENSES 43. 44.
45.Management fee $ 5,555,766 46.
47.Non-interested trustees' compensation 78,485 48.
49. 50.TOTAL EXPENSES 51. 5,634,251
52.53.NET INTEREST INCOME 54. 75,888,233
55.56.NET REALIZED GAIN (LOSS) ON INVESTMENTS 57. 49,400
58.59.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 60. $ 75,937,633
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JUNE 30,
1995 1994
61.INCREASE (DECREASE) IN NET ASSETS
62.Operations $ 75,888,233 $ 42,506,073
Net interest income
63. Net realized gain (loss) 49,400 (60,018)
64. 65.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 75,937,633 42,446,055
66.Distributions to shareholders from net interest income (75,888,233) (42,506,073)
67.Share transactions at net asset value of $1.00 per share 5,637,903,067 5,225,281,864
Proceeds from sales of shares
68. Reinvestment of distributions from net interest income 67,002,434 37,442,132
69. Cost of shares redeemed (5,337,300,557) (5,344,335,280)
70.71. 367,604,944 (81,611,284)
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
72. 73.TOTAL INCREASE (DECREASE) IN NET ASSETS 367,654,344 (81,671,302)
74.NET ASSETS 75. 76.
77. Beginning of period 1,221,446,722 1,303,118,024
78. End of period $ 1,589,101,066 $ 1,221,446,722
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
79. YEARS ENDED JUNE 30,
80. 1995 1994 1993 1992 1991
81.SELECTED PER-SHARE DATA
82.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
83.Income from Investment Operations .052 .031 .030 .046 .070
Net interest income
84.Less Distributions (.052) (.031) (.030) (.046) (.070)
From net interest income
85.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
86.TOTAL RETURN A 5.28% 3.10% 3.04% 4.67% 7.23%
87.RATIOS AND SUPPLEMENTAL DATA
88.Net assets, end of period (000 omitted) $ 1,589,101 $ 1,221,447 $ 1,303,118 $ 1,651,078 $ 1,405,579
89.Ratio of expenses to average net assets .39% .39% .39% .39% .40%
90.Ratio of expenses to average net assets before .39% .39% .39% .39% .41%
expense reductions
91.Ratio of net interest income to average net assets 5.22% 3.05% 3.00% 4.47% 6.90%
</TABLE>
A TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - TERM PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each figure
includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells bonds that have grown in value). You can also look at the fund's
income to measure performance. If Fidelity had not reimbursed certain
expenses, the past 5 years and life of fund total returns would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Term Portfolio 5.87% 30.93% 65.90%
Salomon Brothers 12-Month T-Bill Index 6.66% 33.42% n/a
Average Short U.S. Government Bond Fund 7.33% 38.87% n/a
Consumer Price Index 3.04% 17.40% 36.04%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or since the fund
started on March 19, 1987. For example, if you invested $1,000 in a fund
that had a 5% return over the past year, the value of your investment would
be $1,050. You can compare the fund's returns to the performance of the
Salomon Brothers 12-Month T-Bill Index - a broad measure of the performance
of short-term treasury bills. To measure how the fund's performance stacked
up against its peers, you can compare it to the average short U. S.
government bond fund, which reflects the performance of 35 funds with
similar objectives tracked by Lipper Analytical Services over the past 12
months. These benchmarks include reinvested dividends and capital gains, if
any. Comparing the fund's performance to the consumer price index (CPI)
helps show how your fund did compared to inflation. (The CPI returns begin
on the month end closest to the fund's start date.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Term Portfolio 5.87% 5.54% 6.30%
Salomon Brothers 12-Month T-Bill Index 6.66% 5.94% n/a
Average Short U.S. Government Bond Fund 7.33% 6.77% n/a
Consumer Price Index 3.04% 3.26% 3.80%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
NCCMT-Term Portfsb010
03/31/87 10000.00 10000.00
04/30/87 9952.14 10026.00
05/31/87 9987.11 10060.09
06/30/87 10075.11 10130.51
07/31/87 10117.21 10173.06
08/31/87 10150.09 10206.63
09/30/87 10173.02 10204.59
10/31/87 10313.86 10367.86
11/30/87 10350.31 10395.85
12/31/87 10431.70 10449.91
01/31/88 10534.01 10553.37
02/29/88 10598.64 10614.58
03/31/88 10634.15 10657.03
04/30/88 10679.05 10686.87
05/31/88 10704.60 10711.45
06/30/88 10782.51 10790.72
07/31/88 10822.64 10833.88
08/31/88 10875.04 10866.38
09/30/88 10959.85 10950.05
10/31/88 11046.84 11031.08
11/30/88 11065.42 11047.63
12/31/88 11133.27 11087.40
01/31/89 11213.19 11176.10
02/28/89 11266.85 11221.92
03/31/89 11329.36 11290.38
04/30/89 11448.81 11416.83
05/31/89 11559.37 11541.27
06/30/89 11692.27 11690.16
07/31/89 11814.54 11814.07
08/31/89 11839.64 11828.25
09/30/89 11912.23 11898.03
10/31/89 12036.31 12038.43
11/30/89 12120.85 12135.94
12/31/89 12194.78 12203.90
01/31/90 12244.05 12245.40
02/28/90 12309.56 12318.87
03/31/90 12381.65 12381.70
04/30/90 12438.06 12444.84
05/31/90 12561.64 12569.29
06/30/90 12644.78 12674.87
07/31/90 12770.27 12795.28
08/31/90 12830.77 12868.22
09/30/90 12914.75 12957.01
10/31/90 13028.09 13074.92
11/30/90 13138.10 13161.21
12/31/90 13265.17 13292.82
01/31/91 13365.88 13403.15
02/28/91 13458.29 13479.55
03/31/91 13526.85 13576.60
04/30/91 13632.01 13675.71
05/31/91 13697.57 13737.25
06/30/91 13761.51 13793.58
07/31/91 13841.54 13884.61
08/31/91 13962.50 14009.58
09/30/91 14051.42 14107.64
10/31/91 14140.65 14216.27
11/30/91 14241.79 14327.16
12/31/91 14387.15 14454.67
01/31/92 14423.26 14492.25
02/29/92 14467.05 14531.38
03/31/92 14472.29 14563.35
04/30/92 14579.33 14649.28
05/31/92 14653.77 14721.06
06/30/92 14705.00 14794.66
07/31/92 14749.11 14902.66
08/31/92 14837.16 14977.18
09/30/92 14924.19 15074.53
10/31/92 14821.30 15059.45
11/30/92 14776.81 15068.49
12/31/92 14899.08 15152.87
01/31/93 15052.40 15233.18
02/28/93 15109.15 15286.50
03/31/93 15149.80 15333.89
04/30/93 15202.87 15387.56
05/31/93 15209.59 15387.56
06/30/93 15260.75 15458.34
07/31/93 15304.90 15500.08
08/31/93 15360.89 15569.83
09/30/93 15399.16 15614.98
10/31/93 15440.25 15649.33
11/30/93 15464.70 15677.50
12/31/93 15504.63 15732.37
01/31/94 15560.38 15796.87
02/28/94 15534.74 15781.08
03/31/94 15545.21 15781.08
04/30/94 15538.49 15766.87
05/31/94 15580.58 15798.41
06/30/94 15637.59 15853.70
07/31/94 15711.11 15953.58
08/31/94 15756.07 16007.82
09/30/94 15806.12 16033.44
10/31/94 15858.66 16099.17
11/30/94 15865.67 16089.51
12/31/94 15927.15 16147.44
01/31/95 16071.84 16310.52
02/28/95 16158.44 16454.06
03/31/95 16255.97 16551.14
04/30/95 16349.05 16665.34
05/31/95 16463.38 16813.66
06/30/95 16555.73 16911.18
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in North
Carolina Term Portfolio on March 31, 1987, shortly after the fund started.
As the chart shows, by June 30, 1995, the value of your investment would
have grown to $16,556 - a 65.56% increase on your initial investment. For
comparison, look at how the Salomon Brothers 12-Month Treasury Bill Index
did over the same period. With dividends reinvested, the same $10,000
investment would have grown to $16,911 -
a 69.11% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is no guarantee of
how it will do tomorrow. Bond prices, for
example, generally move in the opposite
direction of interest rates. In turn, the share
price, return, and yield of a fund that invests in
bonds will vary. That means if you sell your
shares during a market downturn, you might
lose money. But if you can ride out the
market's ups and downs, you may have a gain.
(checkmark)
TOTAL RETURN COMPONENTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED JUNE 30,
1995 1994 1993 1992 1991
Dividend return 5.26% 3.17% 3.48% 5.94% 7.91%
Capital appreciation return 0.61% -0.70% 0.30% 0.92% 0.92%
Total return 5.87% 2.47% 3.78% 6.86% 8.83%
</TABLE>
DIVIDEND returns and capital appreciation returns are both part of a bond
fund's total return. A dividend return reflects the actual dividends paid
by the fund. A capital appreciation return reflects both the amount paid by
the fund to shareholders as capital gain distributions and changes in the
fund's share price. Both returns assume the dividends or gains are
reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1995 PAST PAST 6 PAST
MONTH MONTHS 1 YEAR
Dividends per share 4.55(cents) 28.29(cents) 50.40(cents)
Annualized dividend rate 5.59% 5.78% 5.11%
30-day annualized yield 5.33% - -
DIVIDENDS per share show the income paid by the fund for a set period. If
you annualize this number, based on an average share price of $9.91 over
the past month, $9.87 over the past six months and $9.86 over the past
year, you can compare the fund's income over these three periods. The
30-day annualized YIELD is a standard formula for all
funds based on the yields of the bonds in the fund, averaged over the past
30 days. This figure shows you the yield characteristics of the fund's
investments at the end of the period. It also helps you compare funds from
different companies on an equal basis.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - TERM PORTFOLIO
FUND TALK: THE MANAGER'S OVERVIEW
An Interview with
Robert Duby:
Portfolio Manager
of The
North Carolina
Capital
Management
Trust:
Term Portfolio
Q. BOB, HOW DID THE TERM PORTFOLIO PERFORM?
A. Not as well as I would have liked. Although the fund had a decent first
half of the year, the overall results were disappointing. That's because
the fund was positioned too conservatively while the bond market was
rallying during the last six months of its fiscal year. For the 12 months
ended June 30, 1995, the fund's total return was 5.87%. That was less than
the 6.66% total return for the Salomon Brothers 12-month Treasury Bill
Index. Going forward, I'll be measuring the fund's performance more closely
against this index, which is a representation of the 12-month Treasury bill
market. My goal will continue to be to generate returns that are better
than the 12-month Treasury bill market as a whole, while attempting to
dampen relative volatility.
Q. HOW HAS THE INTEREST-RATE ENVIRONMENT CHANGED SINCE THE PERIOD BEGAN?
A. The difference is like night and day. A year ago, the Federal Reserve
was still aggressively pursuing a policy designed to slow down the pace of
economic growth and prevent an outbreak of inflation. The rate on the
one-year Treasury Bill was rising steadily along with the Fed's primary
tool for carrying out its monetary policy, the federal funds rate, which is
the rate banks charge each other for overnight loans. By the end of 1994 -
the halfway point in the fund's fiscal year - the one-year Treasury was
yielding 7.16%. There was still one more rate increase to come, in
February, but since then, as the economy has slowed down, rates have fallen
sharply. Several factors have fueled the rally, including continued
deterioration in the economy; a stable U.S. dollar, which has encouraged
foreign investors to become more active in the U.S. market; and lately,
aggressive buying on the part of market participants who had stayed on the
sidelines during the early stages of the rally. By the end of June, the
one-year Treasury was yielding 5.63%.
Q. HOW DID YOUR STRATEGY CHANGE?
A. The fund's average maturity for much of the period was less than one
year. That was an advantage as long as interest rates were rising and bond
prices were falling. It quickly became a disadvantage once rates started
moving the other way in February 1995 and bond prices rose. As rates have
continued falling, I've taken steps in recent months to extend the fund's
average maturity to closer to one year.
Q. WHAT'S THE OUTLOOK FOR THE REST OF 1995?
A. It's clear that the pace of economic activity has slowed markedly.
During the first quarter of 1995, the gross domestic product grew at an
annual rate of 2.7%, compared to 5.1% during the fourth quarter of 1994. By
the end of June, economists were predicting a second-quarter 1995 growth
rate of less than 1%, and speculation centered on when the Fed might cut
rates. As we all know by now, the Fed did cut the federal funds rate
one-quarter percentage point on July 6, shortly after the period ended.
While the Fed may not be through cutting yet, the economy has shown signs
of unexpected strength lately; housing has improved slightly and consumer
confidence appears to be rising. Given the uncertain outlook, I'd probably
rather have the added flexibility that comes with an average maturity of
slightly less than one year.
FUND FACTS
GOAL: Term Portfolio seeks to obtain as high a
level of current income as is consistent with the
preservation of capital
START DATE: March 19, 1987
SIZE: as of June 30, 1995, more than $70
million
MANAGER: Robert Duby, since 1991; also
manages several institutional funds; previously
managed
Fidelity Daily Income Trust and Fidelity Money
Market Trust; joined Fidelity in 1986
(checkmark)
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - TERM PORTFOLIO
INVESTMENTS JUNE 30, 1995
Showing Percentage of Total Value of Investments
U.S. TREASURY OBLIGATIONS - 67.8%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
BILLS, YIELDS AT DATE OF PURCHASE
6.47%, 3/7/96 $ 10,000,000 $ $9,631,400
5.53%, 5/2/96 25,000,000 23,860,000
5.81%, 5/2/96 15,000,000 14,316,000
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $47,737,770) 47,807,400
U.S. GOVERNMENT AGENCY OBLIGATIONS - 27.1%
Federal National Mortgage
Association discount notes,
0% 4/26/96
(Cost $19,031,500) 20,000,000 19,087,800
REPURCHASE AGREEMENTS - 5.1%
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account
(U.S. Treasury obligations),
at 6.15%, dated 6/30/95
due 7/3/95 $ 3,584,836 $ 3,583,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $70,352,270) $ 70,478,200
INCOME TAX INFORMATION
At June 30, 1995, the aggregate cost of investment securities for income
tax purposes was $70,352,270. Net unrealized appreciation aggregated
$125,930, of which $154,430 related to appreciated investment securities
and $28,500 related to depreciated investment securities.
At June 30, 1995, Term Portfolio had a capital loss carryforward of
approximately $301,000 which will expire on June 30, 2003.
For the period, 100% of the fund's dividends to shareholders was derived
from interest on U.S. government obligations.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST - TERM PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
JUNE 30, 1995
92.ASSETS 93. 94.
95.Investment in securities, at value (including repurchase agreements of $3,583,000) (cost 96. $ 70,478,200
$70,352,270) - See accompanying schedule
97.Cash 98. 141
99. 100.TOTAL ASSETS 101. 70,478,341
102.LIABILITIES 103. 104.
105.Distributions payable $ 103,876 106.
107.Accrued management fee 23,952 108.
109. 110.TOTAL LIABILITIES 111. 127,828
112.113.NET ASSETS 114. $ 70,350,513
115.Net Assets consist of: 116. 117.
118.Paid in capital 119. $ 70,531,116
120.Distributions in excess of net investment income 121. (5,679)
122.Accumulated undistributed net realized gain (loss) 123. (300,854)
124.Net unrealized appreciation (depreciation) on investments 125. 125,930
126.127.NET ASSETS, for 7,098,160 shares outstanding 128. $ 70,350,513
129.130.NET ASSET VALUE, offering price and redemption price per share ($70,350,513 (divided by)
7,098,160 131. $9.91
shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED JUNE 30, 1995
132.INVESTMENT INCOME 134. $ 3,615,759
133.Interest Income
135.EXPENSES 136. 137.
138.Management fee $ 261,780 139.
140.Non-interested trustees' compensation 6,454 141.
142. 143.TOTAL EXPENSES 144. 268,234
145.146.NET INVESTMENT INCOME 147. 3,347,525
148.REALIZED AND UNREALIZED GAIN (LOSS) 150. (82,924)
149.Net realized gain (loss) on investment securities
151.Change in net unrealized appreciation (depreciation) on investment securities 152. 494,133
153.154.NET GAIN (LOSS) 155. 411,209
156.157.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 158. $ 3,758,734
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED JUNE 30,
1995 1994
159.INCREASE (DECREASE) IN NET ASSETS
160.Operations $ 3,347,525 $ 2,328,084
Net investment income
161. Net realized gain (loss) (82,924) (35,609)
162. Change in net unrealized appreciation (depreciation) 494,133 (423,150)
163. 3,758,734 1,869,325
164.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
165.Distributions to shareholders (3,346,756) (2,331,093)
From net investment income
166. In excess of net realized gain - (150,872)
167. 168.TOTAL DISTRIBUTIONS (3,346,756) (2,481,965)
169.Share transactions 7,077,317 13,152,053
Net proceeds from sales of shares
170. Reinvestment of distributions 2,267,207 1,744,308
171. Cost of shares redeemed (5,900,951) (27,554,108)
172.173. 3,443,573 (12,657,747)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
174. 3,855,551 (13,270,387)
175.TOTAL INCREASE (DECREASE) IN NET ASSETS
176.NET ASSETS 177. 178.
179. Beginning of period 66,494,962 79,765,349
180. $ 70,350,513 $ 66,494,962
End of period (including distributions in excess of net investment income of
$5,679 and $15,526, respectively
181.OTHER INFORMATION 183. 184.
182.Shares
185. Sold 717,405 1,327,420
186. Issued in reinvestment of distributions 229,823 176,025
187. Redeemed (597,979) (2,782,280)
188. Net increase (decrease) 349,249 (1,278,835)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
189. YEARS ENDED JUNE 30,
190. 1995 1994B 1993 1992 1991
191.SELECTED PER-SHARE DATA
192.Net asset value, beginning of period $ 9.850 $ 9.940 $ 9.910 $ 9.820 $ 9.730
193.Income from Investment Operations .505 .288 .337 .560 .741
Net investment income
194. Net realized and unrealized gain (loss) .059 (.046) .031 .097 .090
195. Total from investment operations .564 .242 .368 .657 .831
196.Less Distributions (.504) (.312) (.338) (.567) (.741)
From net investment income
197. In excess of net realized gain on investments - (.020) - - -
198. Total distributions (.504) (.332) (.338) (.567) (.741)
199.Net asset value, end of period $ 9.910 $ 9.850 $ 9.940 $ 9.910 $ 9.820
200.TOTAL RETURN A 5.87% 2.47% 3.78% 6.86% 8.83%
201.RATIOS AND SUPPLEMENTAL DATA
202.Net assets, end of period (000 omitted) $ 70,351 $ 66,495 $ 79,765 $ 89,303 $ 83,656
203.Ratio of expenses to average net assets .41% .41% .41% .41% .41%
204.Ratio of expenses to average net assets before .41% .41% .41% .41% .45%
expense reductions
205.Ratio of net investment income to average net assets 5.12% 3.14% 3.41% 5.69% 7.56%
206.Portfolio turnover rate 519% 494% 612% 424% 78%
</TABLE>
A TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B EFFECTIVE JULY 1, 1994, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1995
1. SIGNIFICANT ACCOUNTING POLICIES.
Cash Portfolio and Term Portfolio (the funds) are funds of The North
Carolina Capital Management Trust (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 Massachusetts
business trust. Shares of the trust are offered exclusively to local
governments and public authorities of the State of North Carolina. Each
fund is authorized to issue an unlimited number of shares. The following
summarizes the significant accounting policies of the funds:
SECURITY VALUATION.
CASH PORTFOLIO. 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.
TERM PORTFOLIO. Securities are valued based upon a computerized matrix
system and/or appraisals by a pricing service, both of which consider
market transactions and dealer-supplied valuations. Short-term securities
maturing within sixty days of their purchase date are valued either at
amortized cost or original cost plus accrued interest, both of which
approximate current value. Securities for which quotations are not readily
available through the pricing service are valued at their fair value as
determined in good faith under consistently applied procedures under the
general supervision of the Board of Trustees.
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."
INVESTMENT INCOME.
CASH PORTFOLIO. Interest income, which includes amortization of premium and
accretion of original issue discount, is accrued as earned.
TERM PORTFOLIO. Interest income, which includes accretion of original issue
discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS.
CASH PORTFOLIO. Dividends are declared daily and paid monthly from net
interest income.
TERM PORTFOLIO. Distributions are declared daily and
paid monthly from net interest income. Distributions
to shareholders from realized gains on investments,
if any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for capital
loss carryforwards and losses deferred due to excise tax regulations. Term
Portfolio also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for income
tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income (loss) and
realized and unrealized gain (loss). Undistributed net investment income
and accumulated undistributed net realized gain (loss) on investments may
include temporary book and tax basis differences which will reverse in a
subsequent period. Distributions in excess of net investment income and
accumulated undistributed net realized gain (loss) on investments may
include temporary book and tax basis differences that will reverse in a
subsequent period. Any taxable income or gain remaining at fiscal year end
is distributed in the following year.
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 SEC), the funds, along with other
affiliated entities of Fidelity Management & Research Company (FMR), may
transfer uninvested cash balances into one or more joint trading accounts.
These balances are invested in one or more repurchase agreements that
mature in 60 days or less from the date of purchase, and are collateralized
by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. The funds' investment adviser, FMR, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
TERM PORTFOLIO. Purchases and sales of securities, other than short-term
securities, aggregated $19,847,656 and $19,683,594 respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser,
FMR pays all expenses, except the compensation of the non-interested
Trustees and certain exceptions such as interest, taxes, brokerage
commissions and extraordinary expenses.
FMR receives a fee that is based upon a graduated series of rates ranging
from .38% to .41% of each fund's average net assets. For the period the
management fees paid to FMR were equivalent to an annualized rate of .39%
and .41% for the Cash and Term Portfolios, respectively.
SUB-ADVISER FEE. As Cash Portfolio's investment sub-adviser, FMR Texas
Inc., a wholly owned subsidiary of FMR, receives a fee from FMR of 50% of
the management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plans (the Plans), and in accordance with Rule 12b-1 of the 1940 Act, FMR
pays Fidelity Distributors Corporation (FDC), an affiliate of FMR, a
distribution and service fee that is based on a graduated series of rates
ranging from .14% to .17% of each fund's average net assets. For the
period, FMR paid FDC $2,361,376 and $91,592 on behalf of the Cash and the
Term Portfolios, respectively, all of which FDC paid to Sterling Capital
Distributors, Inc., a wholly-owned subsidiary of Sterling Capital
Management Company.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
The North Carolina Capital Management Trust:
Cash Portfolio and Term Portfolio:
We have audited the accompanying statements of assets and liabilities of
The North Carolina Capital Management Trust (comprised of the Cash
Portfolio and the Term Portfolio), including the schedules of portfolio
investments, as of June 30, 1995, and the related statements of operations
for the year then ended, the statements of changes in net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended. These financial statements
and financial highlights are the responsibility of the Trust's management.
Our responsibility is to express an opinion on these financial statements
and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of June 30,1995 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of the respective aforementioned Portfolios comprising The North Carolina
Capital Management Trust as of June 30, 1995, the results of their
operations for the year then ended, the changes in their net assets for
each of the two years in the period then ended, and the financial
highlights for each of the five years in the period then ended, in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
August 8, 1995
TRUSTEES
William L. Byrnes
John David "J.D." Foust
W. Olin Nisbet III
Helen A. Powers
Bertram H. Witham
OFFICERS
William L. Byrnes, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
W. Olin Nisbet III, VICE PRESIDENT
J. Calvin Rivers, Jr., VICE PRESIDENT
Robert K. Duby, VICE PRESIDENT, TERM PORTFOLIO
Burnell R. Stehman, VICE PRESIDENT, CASH PORTFOLIO
Arthur S. Loring, SECRETARY
John H. Costello, TREASURER
Thomas D. Maher, ASSISTANT VICE PRESIDENT, CASH PORTFOLIO
Leonard M. Rush, ASSISTANT TREASURER
David H. Potel, ASSISTANT SECRETARY
DISTRIBUTION AGENT
Sterling Capital Distributors, Inc.
Charlotte, NC
CUSTODIAN
First Union National Bank of North Carolina
Charlotte, NC
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER FOR CASH PORTFOLIO
FMR Texas, Inc.
Irving, TX
TRANSFER AGENT
Fidelity Investments Institutional Operations Company
Boston, MA
