THE
N
C
ORTH
AROLINA
CAPITAL MANAGEMENT TRUST
CASH PORTFOLIO
TERM PORTFOLIO
SEMIANNUAL REPORT
DECEMBER 31, 1997
NC-SANN-0298
48258
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.
FINANCIAL STATEMENTS 9 STATEMENTS OF ASSETS AND LIABILITIES, OPERATIONS, AND CHANGES IN
NET ASSETS, AS WELL AS FINANCIAL HIGHLIGHTS.
TERM PORTFOLIO:
PERFORMANCE 13 HOW THE FUND HAS DONE OVER TIME.
FUND TALK 16 THE MANAGER'S REVIEW OF THE FUND'S PERFORMANCE, STRATEGY,
AND OUTLOOK.
INVESTMENTS 17 A COMPLETE LIST OF THE FUND'S INVESTMENTS WITH THEIR
MARKET VALUES.
FINANCIAL STATEMENTS 18 STATEMENTS OF ASSETS AND LIABILITIES, OPERATIONS, AND CHANGES IN
NET ASSETS, AS WELL AS FINANCIAL HIGHLIGHTS.
NOTES 22 NOTES TO THE FINANCIAL STATEMENTS.
</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, FEDERAL RESERVE BOARD
OR ANY OTHER AGENCY, AND
ARE SUBJECT TO INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF
PRINCIPAL AMOUNT INVESTED.
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 historical performance, you can look
at either total return or yield. Total return reflects the change in
the value of an investment, assuming reinvestment of the fund's
dividend income and capital gains (the profits earned upon the sale of
securities that have grown in value). 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 10 years total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
NCCMT - CASH PORTFOLIO 2.72% 5.38% 25.48% 74.65%
ALL TAXABLE MONEY MARKET FUNDS AVERAGE 2.55% 5.10% 23.95% 70.27%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had 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 all taxable money market
funds average, which reflects the performance of taxable money market
funds with similar objectives tracked by IBC Financial Data, Inc. The
past six months average represents a peer group of 880 money market
funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
NCCMT - CASH PORTFOLIO 5.38% 4.64% 5.73%
ALL TAXABLE MONEY MARKET FUNDS AVERAGE 5.10% 4.39% 5.46%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
12/29/97 9/30/97 7/1/97 4/1/97 12/31/96
5.48% 5.31% 5.35% 5.09% 5.13%
CASH PORTFOLIO
ALL TAXABLE MONEY 5.12% 5.04% 5.04% 4.96% 4.90%
MARKET FUNDS AVERAGE
12/31/97 10/1/97 7/2/97 4/2/97 12/30/96
2.60% 2.65% 2.65% 2.63% 2.64%
MMDA
Row: 1, Col: 1, Value: 5.48
Row: 1, Col: 2, Value: 5.119999999999999
Row: 1, Col: 3, Value: 2.6
Row: 2, Col: 1, Value: 5.31
Row: 2, Col: 2, Value: 5.04
Row: 2, Col: 3, Value: 2.65
Row: 3, Col: 1, Value: 5.35
Row: 3, Col: 2, Value: 5.04
Row: 3, Col: 3, Value: 2.65
Row: 4, Col: 1, Value: 5.09
Row: 4, Col: 2, Value: 4.96
Row: 4, Col: 3, Value: 2.63
Row: 5, Col: 1, Value: 5.13
Row: 5, Col: 2, Value: 4.9
Row: 5, Col: 3, Value: 2.64
6% -
5% -
4% -
3% -
2% -
1% -
0%
Cash Portfolio
All Taxable Money
Market Funds Average
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 all
taxable money market funds average and the average bank money market
deposit account (MMDA). Figures for the all taxable money market funds
average
are from IBC Financial Data, Inc. 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
NOTE TO
SHAREHOLDERS: TIM
HUYCK BECAME
PORTFOLIO MANAGER
OF THE NORTH
CAROLINA CAPITAL
MANAGEMENT TRUST:
CASH PORTFOLIO ON
NOVEMBER 10,
1997
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE OVER THE PAST SIX MONTHS,
TIM?
A. It was an interesting environment, despite the fact that the
target for the federal funds rate - the rate banks charge each other
for overnight loans - remained unchanged. The Federal Reserve Board
last changed that rate in March to 5.50% from 5.25%. The lack of any
Fed activity did not, however, prevent large swings in investor
sentiment in the second half of the year. During late spring and early
summer, short-term rates fell as inflation remained subdued and the
consensus view was that the economy would slow. Rates turned abruptly
higher in August as economic reports showed continued strength and the
Fed expressed concern that this higher growth would spark inflation.
However, in late October, as word of the financial problems facing
many Asian countries began to spread, expectations of a possible rate
hike again began to fade.
Q. WHAT HAPPENED AT THE END OF THE PERIOD?
A. We saw a few conflicting signals. While most of the market paused
to assess the potential effects of the financial problems in Asia, we
saw short-term rates rise slightly at the end of the year. Year-end
typically is a time when supply in the markets becomes thin as
broker-dealer balance sheets are constrained, resulting in upward
pressure on short-term rates. These pressures were magnified this year
by concerns over the stability of Asian financial markets and banking
systems.
Q. WHAT WAS YOUR STRATEGY AS THIS UNFOLDED?
A. The fund's average maturity remained in the neutral 40- to 50-day
range throughout most of the second half of the year. When rates rise
- - as they did in November and December - I tend to buy longer-maturity
securities that are offering increasingly attractive yields. As a
result, the fund's average maturity lengthened seven days from the end
of October through the end of December, ending the year at 49 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on December 31, 1997, was 5.48%,
compared to 5.35% six months ago. Through December 31, 1997, the
fund's six-month total return was 2.72%, compared to 2.55% for the all
taxable money market funds average, according to IBC Financial Data,
Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I think monetary policy will remain steady, at least until the Fed
determines what effect the Asian turmoil will have on U.S. economic
activity and inflation. During 1997, the Fed displayed a willingness
to stand pat in the face of a growing economy and a tight labor market
as long as inflation was benign. I believe the Fed will show the same
restraint now, choosing to stay on the sidelines until the impact from
the downturn in Asia can begin to be measured, particularly since the
economy continues to show few signs of slowing. In fact, growth rates
in interest-rate-sensitive sectors of the economy, such as housing,
should accelerate in response to continued reduction of long-term
borrowing costs. That said, if the situation in Asia worsens and
demand for U.S. exports slows dramatically as a result, it is
conceivable that the Fed would lower rates in order to avoid a
pronounced and sudden slowdown in domestic economic activity.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: seeks to obtain high current income
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 December 31, 1997, more than
$2.3 billion
MANAGER: Tim Huyck, since November 1997;
joined Fidelity in 1990
(checkmark)
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: CASH PORTFOLIO
INVESTMENTS DECEMBER 31, 1997 (UNAUDITED)
Showing Percentage of Total Value of Investments in Securities
COMMERCIAL PAPER (A) - 93.4%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
AC Acquisition Holding Co.
1/27/98 5.70% $ 5,000,000 $ 4,979,669
2/17/98 5.77 20,000,000 19,851,688
A.H. Robins Company, Inc.
1/29/98 5.70 25,000,000 24,890,722
American General Finance Corp.
1/13/98 5.63 35,000,000 34,935,250
2/9/98 5.76 35,000,000 34,784,254
Asset Securitization Coop. Corp.
1/21/98 5.70 7,000,000 6,978,144
1/28/98 6.04 10,000,000 9,955,000
2/9/98 5.86 20,000,000 19,851,688
2/17/98 5.82 15,000,000 14,887,200
2/23/98 5.78 25,000,000 24,790,576
2/24/98 5.84 30,000,000 29,740,349
Associates Corp. of North America
1/5/98 5.58 20,000,000 19,987,777
1/27/98 5.65 20,000,000 19,919,544
2/9/98 5.77 29,000,000 28,821,239
2/10/98 5.77 10,000,000 9,936,777
2/11/98 5.77 25,000,000 24,837,993
2/12/98 5.77 5,000,000 4,966,808
3/19/98 5.83 7,000,000 6,913,909
AVCO Financial Services
2/2/98 5.65 25,000,000 24,876,888
2/4/98 5.69 10,000,000 9,947,016
2/17/98 5.77 13,000,000 12,903,598
3/30/98 5.83 20,000,000 19,719,377
Bank of New York Company, Inc.
3/30/98 5.84 10,000,000 9,859,444
Bear Stearns Co., Inc.
1/14/98 5.69 20,000,000 19,959,411
1/21/98 5.72 4,000,000 3,987,644
1/27/98 5.69 20,000,000 19,918,822
2/23/98 5.80 10,000,000 9,915,788
2/23/98 5.81 20,000,000 19,831,577
3/23/98 5.84 30,000,000 29,611,875
3/25/98 5.84 5,000,000 4,933,715
Beneficial Corp.
1/28/98 5.68 20,000,000 19,916,000
2/2/98 5.86 10,000,000 9,948,444
2/3/98 5.71 30,000,000 29,845,175
2/9/98 5.78 20,000,000 19,876,500
3/18/98 5.83 15,000,000 14,817,916
3/23/98 5.83 10,000,000 9,870,625
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
CIESCO, L.P.
1/26/98 5.67% $ 35,000,000 $ 34,863,888
2/5/98 5.80 10,000,000 9,944,097
2/20/98 5.89 10,000,000 9,919,027
CIT Group Holdings, Inc.
2/10/98 5.77 50,000,000 49,683,889
6/25/98 5.82 30,000,000 29,176,041
Citibank Credit Card Master Trust I (Dakota Certificate Program)
1/22/98 5.69 25,000,000 24,918,041
1/26/98 5.70 20,000,000 19,921,805
1/26/98 5.81 3,128,000 3,115,509
1/27/98 5.81 5,000,000 4,979,236
2/5/98 5.85 5,000,000 4,971,805
2/10/98 5.86 15,000,000 14,903,333
2/24/98 5.87 5,000,000 4,956,500
Commercial Credit Co.
1/7/98 5.59 15,000,000 14,986,225
2/10/98 5.77 30,000,000 29,810,333
du Pont (E.I.) de Nemours & Co.
1/29/98 5.60 10,000,000 9,957,222
3/17/98 5.68 15,000,000 14,827,187
3/23/98 5.64 25,000,000 24,690,625
5/6/98 5.68 15,000,000 14,712,500
Enterprise Funding Corp.
1/15/98 5.83 6,703,000 6,687,959
1/20/98 5.98 3,487,000 3,476,049
1/22/98 5.80 3,002,000 2,991,931
1/26/98 5.88 20,000,000 19,919,028
1/28/98 5.73 5,000,000 4,978,812
1/28/98 5.81 5,000,000 4,978,437
1/30/98 5.81 10,000,000 9,953,680
2/2/98 5.85 15,000,000 14,922,755
2/4/98 5.87 15,000,000 14,917,550
2/5/98 5.86 5,000,000 4,974,222
2/10/98 5.86 16,505,000 16,388,634
Ford Motor Credit Corp.
1/6/98 5.60 5,000,000 4,996,166
1/8/98 5.65 35,000,000 34,962,025
1/20/98 5.64 30,000,000 29,911,808
1/28/98 5.67 25,000,000 24,895,000
2/3/98 5.66 15,000,000 14,924,375
General Electric Capital Corp.
1/12/98 5.61 5,000,000 4,991,566
1/27/98 5.64 5,000,000 4,979,958
2/6/98 5.77 20,000,000 19,886,200
COMMERCIAL PAPER (A) - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
General Electric Capital Corp. - continued
2/10/98 5.72% $ 20,000,000 $ 19,875,111
2/11/98 5.77 20,000,000 19,870,394
3/10/98 5.71 10,000,000 9,895,166
3/16/98 5.70 10,000,000 9,886,122
3/25/98 5.71 15,000,000 14,808,062
4/1/98 5.68 20,000,000 19,724,000
General Electric Capital Services Inc.
3/18/98 5.68 10,000,000 9,883,255
3/27/98 5.82 10,000,000 9,865,180
4/27/98 5.73 20,000,000 19,641,044
General Electric Co.
3/24/98 5.68 15,000,000 14,810,716
3/27/98 5.80 10,000,000 9,865,416
Goldman Sachs Group L.P. (The)
1/26/98 6.10 20,000,000 19,919,027
H.J. Heinz Co.
2/17/98 5.83 10,000,000 9,924,538
Household Finance Corp.
2/10/98 5.78 10,000,000 9,936,667
2/11/98 5.78 50,000,000 49,675,416
3/2/98 5.80 40,000,000 39,618,666
J.C. Penney Funding Corp.
1/12/98 5.66 20,000,000 19,965,777
Kitty Hawk Funding Corp.
2/17/98 5.86 5,000,000 4,962,139
3/2/98 5.83 10,000,000 9,904,166
Merrill Lynch & Co., Inc.
1/14/98 5.71 3,000,000 2,993,987
2/4/98 5.82 25,000,000 24,863,764
2/10/98 5.78 10,000,000 9,936,666
3/17/98 5.83 19,500,000 19,266,967
Monsanto Co.
2/25/98 5.84 15,000,000 14,867,541
3/9/98 5.63 9,200,000 9,105,828
3/20/98 5.70 10,000,000 9,879,967
4/6/98 5.66 5,400,000 5,321,625
Morgan Stanley, Dean Witter, Discover & Co.
1/15/98 5.63 20,000,000 19,956,833
1/22/98 5.65 15,000,000 14,951,262
1/29/98 5.68 10,000,000 9,956,367
2/19/98 5.78 25,000,000 24,806,041
3/3/98 5.80 30,000,000 29,709,233
3/9/98 5.81 15,000,000 14,840,316
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Morgan (J.P.) & Co.
4/17/98 5.81% $ 20,000,000 $ 19,664,333
6/19/98 5.80 75,000,000 73,024,249
New Center Asset Trust
2/10/98 5.80 10,000,000 9,936,444
2/17/98 5.78 22,000,000 21,836,283
3/19/98 5.83 15,000,000 14,815,520
PHH Corp.
1/30/98 5.70 25,000,000 24,886,819
2/17/98 5.78 5,000,000 4,962,792
2/26/98 5.83 5,000,000 4,955,278
3/16/98 5.83 10,000,000 9,881,805
3/25/98 5.82 20,000,000 19,735,783
Preferred Receivables Funding Corp.
1/20/98 5.83 5,000,000 4,984,773
1/21/98 5.99 5,000,000 4,983,472
1/27/98 5.82 13,000,000 12,946,014
2/3/98 5.85 8,000,000 7,957,466
2/12/98 5.86 11,425,000 11,347,690
2/20/98 5.98 7,000,000 6,942,444
2/25/98 5.91 5,225,000 5,178,301
Southern Co. Group
2/17/98 5.76 38,000,000 37,718,209
2/17/98 5.78 2,550,000 2,531,023
2/24/98 5.82 10,000,000 9,913,900
3/6/98 5.81 20,000,000 19,796,340
3/9/98 5.80 19,000,000 18,797,734
Three Rivers Funding Corp.
1/12/98 5.95 15,000,000 14,972,866
1/15/98 5.94 11,317,000 11,291,033
1/15/98 6.03 5,000,000 4,988,333
Transamerica Financial Corp.
1/26/98 5.77 15,000,000 14,940,625
1/26/98 5.78 14,000,000 13,944,388
1/28/98 5.77 15,000,000 14,935,875
1/28/98 5.78 15,000,000 14,935,650
Triple A One Funding Corp.
1/13/98 5.94 13,000,000 12,974,433
2/5/98 5.85 10,000,000 9,943,611
2/6/98 5.92 4,000,000 3,976,520
TOTAL COMMERCIAL PAPER 2,191,029,085
FEDERAL AGENCIES - 2.7%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FANNIE MAE - DISCOUNT NOTES - 2.7%
1/16/98 5.54% $ 19,285,000 $ 19,283,896
3/10/98 5.72 25,000,000 24,753,666
4/15/98 6.06 20,000,000 19,993,446
TOTAL FEDERAL AGENCIES 64,031,008
REPURCHASE AGREEMENTS - 3.9%
MATURITY
AMOUNT
In a joint trading account
dated 12/31/97 due 1/2/98:
(U.S. Treasury Obligation)
At 6.59% $ 92,407,823 92,374,000
TOTAL INVESTMENTS - 100% $ 2,347,434,093
Total Cost for Income Tax Purposes $ 2,347,434,093
LEGEND
1. 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, 1997, the fund had a capital loss carryforward of
approximately $58,500 of which $53,000 and $5,500 will expire on June
30, 2002 and 2004, respectively.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: CASH PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1997 (UNAUDITED)
2.ASSETS 3. 4.
5.INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE AGREEMENTS OF $92,374,000) - 6. $ 2,347,434,093
SEE ACCOMPANYING SCHEDULE
7.CASH 8. 18,897
9.INTEREST RECEIVABLE 10. 770,877
11. 12.TOTAL ASSETS 13. 2,348,223,867
14.LIABILITIES 15. 16.
17.DISTRIBUTIONS PAYABLE $ 1,767,461 18.
19.ACCRUED MANAGEMENT FEE 697,238 20.
21.DEFERRED TRUSTEES' COMPENSATION 320,047
22. 23.TOTAL LIABILITIES 24. 2,784,746
25.26.NET ASSETS 27. $ 2,345,439,121
28.NET ASSETS CONSIST OF: 29. 30.
31.PAID IN CAPITAL 32. $ 2,345,497,491
33.ACCUMULATED NET REALIZED GAIN (LOSS) ON INVESTMENTS 34. (58,370)
35.36.NET ASSETS, FOR 2,345,471,527 SHARES OUTSTANDING 37. $ 2,345,439,121
38.39.NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE 40. $1.00
($2,345,439,121 (DIVIDED BY) 2,345,471,527 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
41.42.INTEREST INCOME 43. $ 62,883,308
44.EXPENSES 45. 46.
47.MANAGEMENT FEE $ 3,859,112 48.
49.NON-INTERESTED TRUSTEES' COMPENSATION 32,657 50.
51. TOTAL EXPENSES BEFORE REDUCTIONS 3,891,769 52.
53. EXPENSE REDUCTIONS (5,690) 3,886,079
54.55.NET INTEREST INCOME 56. 58,997,229
57.58.NET REALIZED GAIN (LOSS) ON INVESTMENTS 59. 153
60.61.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 62. $ 58,997,382
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1997 JUNE 30,
(UNAUDITED) 1997
63.INCREASE (DECREASE) IN NET ASSETS
64.OPERATIONS $ 58,997,229 $ 106,084,220
NET INTEREST INCOME
65. NET REALIZED GAIN (LOSS) 153 5,054
66. 67.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 58,997,382 106,089,274
68.DISTRIBUTIONS TO SHAREHOLDERS FROM NET INTEREST INCOME (58,997,229) (106,084,220)
69.SHARE TRANSACTIONS AT NET ASSET VALUE OF $1.00 PER SHARE 3,603,464,122 6,770,047,301
PROCEEDS FROM SALES OF SHARES
70. REINVESTMENT OF DISTRIBUTIONS FROM NET INTEREST INCOME 50,583,528 93,293,085
71. COST OF SHARES REDEEMED (3,292,533,366) (6,619,741,151)
72.73. 361,514,284 243,599,235
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
74. 75.TOTAL INCREASE (DECREASE) IN NET ASSETS 361,514,437 243,604,289
76.NET ASSETS 77. 78.
79. BEGINNING OF PERIOD 1,983,924,684 1,740,320,395
80. END OF PERIOD $ 2,345,439,121 $ 1,983,924,684
</TABLE>
FINANCIAL HIGHLIGHTS
81. SIX MONTHS ENDED YEARS ENDED JUNE 30,
DECEMBER 31, 1997
82. (UNAUDITED) 1997 1996 1995 1994 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
83.SELECTED PER-SHARE DATA
84.NET ASSET VALUE, BEGINNING OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
85.INCOME FROM INVESTMENT OPERATIONS .027 .051 .053 .052 .031 .030
NET INTEREST INCOME
86.LESS DISTRIBUTIONS
87. FROM NET INTEREST INCOME (.027) (.051) (.053) (.052) (.031) (.030)
88.NET ASSET VALUE, END OF PERIOD $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
89.TOTAL RETURN B 2.72% 5.25% 5.43% 5.28% 3.10% 3.04%
90.RATIOS AND SUPPLEMENTAL DATA
91.NET ASSETS, END OF PERIOD (IN MILLIONS) $ 2,345 $ 1,984 $ 1,740 $ 1,589 $ 1,221 $ 1,303
92.RATIO OF EXPENSES TO AVERAGE NET ASSETS .35% A .35% .36% .39% .39% .39%
93.RATIO OF NET INTEREST INCOME TO AVERAGE NET ASSETS 5.35% A 5.13% 5.27% 5.22% 3.05% 3.00%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
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. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain expenses, the past 10 years total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED DECEMBER 31, 1997 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
NCCMT - TERM PORTFOLIO 2.88% 5.78% 27.41% 81.97%
SB 1-YEAR U.S. TREASURY BENCHMARK 3.03% 6.11% 29.14% 87.25%
SHORT U.S. GOVERNMENT BOND FUNDS AVERAGE 3.22% 5.82% 27.79% 89.68%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, six months, one year, five
years or 10 years. For example, if you had 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 1-Year U.S. Treasury Benchmark - 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 short U.S. government bond funds average, which
reflects the performance of mutual funds with similar objectives
tracked by Lipper Analytical Services, Inc. The past six months
average represents a peer group of 73 mutual funds. These benchmarks
include reinvested dividends and capital gains, if any, and exclude
the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
NCCMT - TERM PORTFOLIO 5.78% 4.96% 6.17%
SB 1-YEAR U.S. TREASURY BENCHMARK 6.11% 5.25% 6.47%
SHORT U.S. GOVERNMENT BOND FUNDS AVERAGE 5.82% 5.02% 6.58%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19971231 19980120 145503 S00000000000001
NCCMT-Term Portfolio SB 1-Year Treas Benchmark
00620 SB010
1987/12/31 10000.00 10000.00
1988/01/31 10098.07 10099.00
1988/02/29 10160.03 10157.57
1988/03/31 10194.07 10198.20
1988/04/30 10237.11 10226.76
1988/05/31 10261.60 10250.28
1988/06/30 10336.29 10326.13
1988/07/31 10374.76 10367.44
1988/08/31 10424.99 10398.54
1988/09/30 10506.29 10478.61
1988/10/31 10589.68 10556.15
1988/11/30 10607.49 10571.98
1988/12/31 10672.53 10610.04
1989/01/31 10749.15 10694.92
1989/02/28 10800.58 10738.77
1989/03/31 10860.51 10804.28
1989/04/30 10975.02 10925.29
1989/05/31 11081.00 11044.37
1989/06/30 11208.40 11186.85
1989/07/31 11325.61 11305.43
1989/08/31 11349.67 11318.99
1989/09/30 11419.26 11385.77
1989/10/31 11538.20 11520.13
1989/11/30 11619.24 11613.44
1989/12/31 11690.12 11678.48
1990/01/31 11737.34 11718.18
1990/02/28 11800.15 11788.49
1990/03/31 11869.25 11848.61
1990/04/30 11923.32 11909.04
1990/05/31 12041.79 12028.13
1990/06/30 12121.49 12129.17
1990/07/31 12241.79 12244.39
1990/08/31 12299.79 12314.19
1990/09/30 12380.29 12399.16
1990/10/31 12488.94 12511.99
1990/11/30 12594.40 12594.57
1990/12/31 12716.21 12720.51
1991/01/31 12812.75 12826.09
1991/02/28 12901.34 12899.20
1991/03/31 12967.06 12992.08
1991/04/30 13067.87 13086.92
1991/05/31 13130.72 13145.81
1991/06/30 13192.00 13199.71
1991/07/31 13268.73 13286.82
1991/08/31 13384.68 13406.41
1991/09/30 13469.92 13500.25
1991/10/31 13555.45 13604.20
1991/11/30 13652.41 13710.32
1991/12/31 13791.76 13832.34
1992/01/31 13826.37 13868.30
1992/02/29 13868.35 13905.75
1992/03/31 13873.37 13936.34
1992/04/30 13975.98 14018.56
1992/05/31 14047.34 14087.25
1992/06/30 14096.45 14157.69
1992/07/31 14138.73 14261.04
1992/08/31 14223.14 14332.35
1992/09/30 14306.57 14425.51
1992/10/31 14207.94 14411.08
1992/11/30 14165.29 14419.73
1992/12/31 14282.50 14500.48
1993/01/31 14429.47 14577.33
1993/02/28 14483.87 14628.35
1993/03/31 14522.85 14673.70
1993/04/30 14573.72 14725.06
1993/05/31 14580.16 14725.06
1993/06/30 14629.20 14792.79
1993/07/31 14671.53 14832.73
1993/08/31 14725.19 14899.48
1993/09/30 14761.88 14942.69
1993/10/31 14801.27 14975.56
1993/11/30 14824.71 15002.52
1993/12/31 14862.99 15055.03
1994/01/31 14916.43 15116.75
1994/02/28 14891.85 15101.64
1994/03/31 14901.89 15101.64
1994/04/30 14895.45 15088.05
1994/05/31 14935.79 15118.22
1994/06/30 14990.45 15171.14
1994/07/31 15060.93 15266.71
1994/08/31 15104.03 15318.62
1994/09/30 15152.00 15343.13
1994/10/31 15202.36 15406.04
1994/11/30 15209.09 15396.79
1994/12/31 15268.02 15452.22
1995/01/31 15406.72 15608.29
1995/02/28 15489.74 15745.64
1995/03/31 15583.24 15838.54
1995/04/30 15672.46 15947.83
1995/05/31 15782.06 16089.76
1995/06/30 15870.59 16183.08
1995/07/31 15929.13 16262.38
1995/08/31 16002.67 16342.07
1995/09/30 16073.58 16413.97
1995/10/31 16162.55 16505.89
1995/11/30 16265.82 16604.92
1995/12/31 16358.89 16702.89
1996/01/31 16448.89 16809.79
1996/02/29 16470.58 16829.96
1996/03/31 16497.87 16883.82
1996/04/30 16556.56 16941.23
1996/05/31 16614.16 17010.68
1996/06/30 16703.90 17104.24
1996/07/31 16765.71 17169.24
1996/08/31 16834.42 17251.65
1996/09/30 16956.19 17367.24
1996/10/31 17063.70 17499.23
1996/11/30 17150.51 17588.47
1996/12/31 17202.55 17648.28
1997/01/31 17274.95 17736.52
1997/02/28 17352.63 17800.37
1997/03/31 17374.37 17848.43
1997/04/30 17485.46 17957.30
1997/05/31 17585.79 18070.44
1997/06/30 17687.16 18177.05
1997/07/31 17793.50 18307.93
1997/08/31 17845.76 18372.00
1997/09/30 17958.95 18471.21
1997/10/31 18045.61 18574.65
1997/11/30 18096.17 18637.81
1997/12/31 18196.92 18725.40
IMATRL PRASUN SHR__CHT 19971231 19980120 145506 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in North Carolina Term Portfolio on December 31, 1987. As the
chart shows, by December 31, 1997, the value of the investment would
have grown to $18,197 - an 81.97% increase on the initial investment.
For comparison, look at how the Salomon Brothers 1-Year U.S. Treasury
Benchmark did over the same period. With dividends and capital gains,
if any, reinvested, the same $10,000 investment would have grown to
$18,725 - an 87.25% 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> <C>
SIX MONTHS YEARS ENDED JUNE 30,
ENDED
DECEMBER 31,
1997 1997 1996 1995 1994 1993
DIVIDEND RETURN 3.61% 7.62% 6.16% 5.26% 3.17% 3.48%
CAPITAL APPRECIATION RETURN -0.73% -1.73% -0.91% 0.61% -0.70% 0.30%
TOTAL RETURN 2.88% 5.89% 5.25% 5.87% 2.47% 3.78%
</TABLE>
TOTAL RETURN COMPONENTS include both dividend returns and capital
appreciation returns. 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 capital gains paid by the fund are reinvested, if any.
DIVIDENDS AND YIELD
PERIODS ENDED DECEMBER 31, 1997 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR
DIVIDENDS PER SHARE 4.33(CENTS) 34.37(CENTS) 71.37(CENTS)
ANNUALIZED DIVIDEND RATE 5.32% 7.10% 7.40%
30-DAY ANNUALIZED YIELD 5.43% - -
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 $9.58
over the past one month, $9.60 over the past six months and $9.65 over
the past one 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
CURT HOLLINGSWORTH,
PORTFOLIO MANAGER OF
THE NORTH CAROLINA
CAPITAL MANAGEMENT
TRUST: TERM PORTFOLIO
Q. HOW DID THE FUND PERFORM, CURT?
A. For the six-month period that ended December 31, 1997, the fund had
a total return of 2.88%, compared to the 3.22% return of the short
U.S. government bond funds average for the same period, according to
Lipper Analytical Services. The Salomon Brothers 1-Year U.S. Treasury
Benchmark, which most closely resembles the securities held in the
fund, returned 3.03% over the same six-month period. For the 12-month
period that ended December 31, 1997, the fund had a total return of
5.78%, while the short U.S. government bond funds average returned
5.82%. For the same one-year period, the Salomon Brothers 1-Year U.S.
Treasury Benchmark had a return of 6.11%.
Q. WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PAST SIX
MONTHS?
A. Increasingly positive, although the consensus was somewhat negative
when the period began. In July, investors worried that the economy was
in danger of overheating, setting off fears that inflation would rise
and ultimately force the Federal Reserve Board to raise short-term
interest rates. Unemployment had hit a quarter-century low of 4.6% and
the economy - as measured by the gross domestic product (GDP) - was
growing at a fairly quick 4% annual pace. Those factors sent yields on
one-year Treasury notes higher - and their prices lower - through late
summer and early fall. After that, however, sentiment turned decidedly
more positive and provided the underpinnings for a bond market rally
that lasted throughout the remainder of the period.
Q. WHY WAS THERE RENEWED OPTIMISM FOR BONDS?
A. There were several factors for the shift in sentiment. Not only did
the U.S. economy show signs of slowing, but low unemployment failed to
translate into higher wages - often a major ingredient in rising
inflation. Troubles abroad provided an added boost for the U.S.
Treasury market. Investors seeking shelter from the spreading storm of
currency and economic problems in Southeast Asia fled to the Treasury
market, pushing yields lower and prices higher. While long- and
intermediate-term bonds benefited most from those developments,
one-year Treasury note prices also rose as their yields fell.
Q. HOW DID YOU STRUCTURE THE PORTFOLIO DURING THE PERIOD?
A. Throughout the past six months, I kept the fund almost exclusively
invested in Treasury securities. I did that because I didn't feel that
agency securities - which are the other types of securities in which
the fund can invest - offered attractive yields. I selected Treasury
issues with maturities close to a one-year bill so that the fund's
holdings closely replicated the characteristics of that security.
Q. WHAT'S YOUR OUTLOOK?
A. The yield on the one-year Treasury bill closed the year just a hair
below the federal funds rate - which is the rate banks charge each
other for overnight loans. That suggests that investors believe the
Fed will cut short-term interest rates. If the Fed does "ease" by
taking rates lower, bonds could continue their rally. If not, the bond
market probably would react negatively by forcing yields higher and
prices lower. If the Fed neither raises nor lowers interest rates, the
market would likely remain relatively stable.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
FUND FACTS
GOAL: seeks to obtain high current income as
is consistent with the preservation of capital
START DATE: March 19, 1987
SIZE: as of December 31, 1997, more than
$70 million
MANAGER: Curtis Hollingsworth, since 1995;
manager, various Fidelity taxable bond funds;
joined Fidelity in 1983
(checkmark)
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: TERM PORTFOLIO
INVESTMENTS DECEMBER 31, 1997 (UNAUDITED)
Showing Percentage of Total Value of Investments in Securities
U.S. TREASURY OBLIGATIONS - 99.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NOTES, YIELDS AT DATE OF PURCHASE
5.50%, 11/15/98 $ 70,300,000 $ 70,223,373
(Cost $70,146,457)
CASH EQUIVALENTS - 0.1%
MATURITY
AMOUNT
In a joint trading account
dated 12/31/97 due 1/2/98
(U.S. Treasury Obligation)
At 6.40% $ 76,027 76,000
TOTAL INVESTMENTS - 100%
(Cost $70,222,457) $ 70,299,373
INCOME TAX INFORMATION
At December 31, 1997 the aggregate cost of investment securities for
income tax purposes was $70,222,457. Net unrealized appreciation
aggregated $76,916, all of which related to appreciated investment
securities.
At June 30, 1997 the fund had a capital loss carryforward of
approximately $694,300 of which $244,200 and $450,100 will expire on
June 30, 2003, and 2004, respectively.
The fund intends to elect to defer to its fiscal year ending June 30,
1998 approximately $1,001,200 of losses recognized during the period
November 1, 1996 to June 30, 1997.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: TERM PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1997 (UNAUDITED)
94.ASSETS 95. 96.
97.INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE AGREEMENTS OF $76,000) (COST
$70,222,457) - 98. $ 70,299,373
SEE ACCOMPANYING SCHEDULE
99.CASH 100. 600
101.INTEREST RECEIVABLE 102. 491,323
103. 104.TOTAL ASSETS 105. 70,791,296
106.LIABILITIES 107. 108.
109.DISTRIBUTIONS PAYABLE $ 121,739 110.
111.ACCRUED MANAGEMENT FEE 21,499 112.
113.DEFERRED TRUSTEES' COMPENSATION 12,785 114.
115. 116.TOTAL LIABILITIES 117. 156,023
118.119.NET ASSETS 120. $ 70,635,273
121.NET ASSETS CONSIST OF: 122. 123.
124.PAID IN CAPITAL 125. $ 73,042,297
126.UNDISTRIBUTED NET INVESTMENT INCOME 127. 4,457
128.ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS 129. (2,488,397)
130.NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 131. 76,916
132.133.NET ASSETS, FOR 7,370,181 SHARES OUTSTANDING 134. $ 70,635,273
135.136.NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE ($70,635,273
(DIVIDED BY) 7,370,181 137. $9.58
SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED DECEMBER 31, 1997 (UNAUDITED)
138.INVESTMENT INCOME 140. $ 2,572,056
139.INTEREST
141.EXPENSES 142. 143.
144.MANAGEMENT FEE $ 124,806 145.
146.NON-INTERESTED TRUSTEES' COMPENSATION 563 147.
148. TOTAL EXPENSES BEFORE REDUCTIONS 125,369 149.
150. EXPENSE REDUCTIONS (294) 125,075
151.152.NET INVESTMENT INCOME 153. 2,446,981
154.REALIZED AND UNREALIZED GAIN (LOSS) 156. (791,143)
155.NET REALIZED GAIN (LOSS) ON INVESTMENT SECURITIES
157.CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENT SECURITIES 158. 363,735
159.160.NET GAIN (LOSS) 161. (427,408)
162.163.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 164. $ 2,019,573
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED YEAR ENDED
DECEMBER 31, 1997 JUNE 30,
(UNAUDITED) 1997
165.INCREASE (DECREASE) IN NET ASSETS
166.OPERATIONS $ 2,446,981 $ 4,979,596
NET INVESTMENT INCOME
167. NET REALIZED GAIN (LOSS) (791,143) (1,179,282)
168. CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 363,735 (16,766)
169. 2,019,573 3,783,548
170.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS
171.DISTRIBUTIONS TO SHAREHOLDERS FROM NET INVESTMENT INCOME (2,455,490) (4,981,644)
172.SHARE TRANSACTIONS 3,417,672 11,213,091
NET PROCEEDS FROM SALES OF SHARES
173. REINVESTMENT OF DISTRIBUTIONS 1,649,574 3,349,754
174. COST OF SHARES REDEEMED (2,723,089) (8,992,521)
175.176. 2,344,157 5,570,324
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS
177. 1,908,240 4,372,228
178.TOTAL INCREASE (DECREASE) IN NET ASSETS
179.NET ASSETS 180. 181.
182. BEGINNING OF PERIOD 68,727,033 64,354,805
183. $ 70,635,273 $ 68,727,033
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $4,457 AND $12,966,
RESPECTIVELY)
184.OTHER INFORMATION 186. 187.
185.SHARES
188. SOLD 356,142 1,151,372
189. ISSUED IN REINVESTMENT OF DISTRIBUTIONS 171,843 344,271
190. REDEEMED (282,999) (925,196)
191. NET INCREASE (DECREASE) 244,986 570,447
</TABLE>
FINANCIAL HIGHLIGHTS
192. SIX MONTHS ENDED YEARS ENDED JUNE 30,
DECEMBER 31, 1997
193. (UNAUDITED) 1997 1996 1995 1994 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
194.SELECTED PER-SHARE DATA
195.NET ASSET VALUE, BEGINNING OF PERIOD $ 9.650 $ 9.820 $ 9.910 $ 9.850 $ 9.940 $ 9.910
196.INCOME FROM INVESTMENT OPERATIONS .345 C .729 C .601 .505 .288 .337
NET INVESTMENT INCOME
197. NET REALIZED AND UNREALIZED GAIN (LOSS) (.071) (.170) (.093) .059 (.046) .031
198. TOTAL FROM INVESTMENT OPERATIONS .274 .559 .508 .564 .242 .368
199.LESS DISTRIBUTIONS
200. FROM NET INVESTMENT INCOME (.344) (.729) (.598) (.504) (.312) (.338)
201. IN EXCESS OF NET REALIZED GAIN - - - - (.020) -
202. TOTAL DISTRIBUTIONS (.344) (.729) (.598) (.504) (.332) (.338)
203.NET ASSET VALUE, END OF PERIOD $ 9.580 $ 9.650 $ 9.820 $ 9.910 $ 9.850 $ 9.940
204.TOTAL RETURN B 2.88% 5.89% 5.25% 5.87% 2.47% 3.78%
205.RATIOS AND SUPPLEMENTAL DATA
206.NET ASSETS, END OF PERIOD (IN MILLIONS) $ 71 $ 69 $ 64 $ 70 $ 66 $ 80
207.RATIO OF EXPENSES TO AVERAGE NET ASSETS .36% A .37% .38% .41% .41% .41%
208.RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 7.05% A 7.48% 6.06% 5.12% 3.14% 3.41%
209.PORTFOLIO TURNOVER RATE 357% A 232% 89% 519% 494% 612%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1997 (Unaudited)
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 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.
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. Securities for
which quotations are not readily available are valued at their fair
value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which quotations are not readily available are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
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
among 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 investment income. Distributions from realized gains, 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.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
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. 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 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 for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the funds, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). 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. PURCHASES AND SALES OF INVESTMENTS.
TERM PORTFOLIO. Purchases and sales of securities, other than
short-term securities, aggregated $119,564,838 and $116,742,761,
respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR pays most
expenses, except the compensation of the non-interested Trustees and
certain exceptions such as interest, taxes, brokerage commissions and
extraordinary expenses. The management fee paid to FMR by each fund is
reduced by an amount equal to the fees and expenses paid by the fund
to the non-interested Trustees. FMR receives a fee that is based upon
a graduated series of rates ranging from .330% to .365% of each fund's
average net assets. For the period, the management fees paid to FMR
were equivalent to an annualized rate of .35% and .36% for the Cash
and Term Portfolios, respectively. Effective January 1, 1998, FMR
receives a fee that is based upon a graduated series of rates ranging
from .290% to .350% of each fund's average net assets.
SUB-ADVISER FEE. As Cash Portfolio's investment sub-adviser, Fidelity
Investments Money Management Inc. (formerly 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 Cash Portfolio'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 .15% to .16% of each fund's
average net assets. For the period, FMR paid FDC $1,746,124 and
$55,070 on behalf of the Cash and Term Portfolios, respectively, all
of which FDC paid to Sterling Capital Distributors, Inc., a
wholly-owned subsidiary of Sterling Capital Management Company.
Effective January 1, 1998, FMR pays FDC a distribution and service fee
that is based on a graduated series of rates ranging from .14% to .15%
of each fund's average net assets.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of each fund with its
transfer agent whereby credits realized as a result of uninvested cash
balances were used to reduce a portion of the fund's expenses. During
the period, Cash and Term Portfolios' expenses were reduced by $5,690
and $294, respectively, under these arrangements.
6. DEFERRED TRUSTEE COMPENSATION.
The non-interested Trustees may elect to defer receipt of all or a
portion of their annual fees under the Trustees' Deferred Compensation
Plan ("the Plan"). Interest is accrued on amounts deferred under the
Plan based on the prevailing 90 day Treasury Bill rate.
TRUSTEES
William L. Byrnes
John David "J.D." Foust *
W. Olin Nisbet III
Helen A. Powers *
Bertram H. Witham *
OFFICERS
William L. Byrnes, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
W. Olin Nisbet III, VICE PRESIDENT
J. Calvin Rivers, Jr., VICE PRESIDENT
Fred L. Henning, Jr., VICE PRESIDENT
Dwight D. Churchill, VICE PRESIDENT, TERM PORTFOLIO
Curtis Hollingsworth, VICE PRESIDENT, TERM PORTFOLIO
Boyce Greer, VICE PRESIDENT, CASH PORTFOLIO
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Thomas D. Maher, ASSISTANT VICE PRESIDENT, CASH PORTFOLIO
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
Thomas J. Simpson, ASSISTANT TREASURER, CASH PORTFOLIO
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
Fidelity Investments Money Management, Inc.
Merrimack, NH
TRANSFER AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
