THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: CASH PORTFOLIO
PERFORMANCE: THE BOTTOM LINE
To evaluate 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 year total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Cash Portfolio 5.05% 29.45% 67.54%
All Taxable Money Market 4.68% 27.71% 63.37%
Funds Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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
one year average represents a peer group of 931 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Cash Portfolio 5.05% 5.30% 5.30%
All Taxable Money Market 4.68% 5.01% 5.07%
Funds Average
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
6/29/99 3/30/99 12/29/98 9/29/98 6/30/98
NCCMT - Cash Portfolio 4.69% 4.63% 4.97% 5.29% 5.33%
All Taxable Money Market 4.35% 4.35% 4.53% 4.93% 5.04%
Funds Average
6/30/99 3/31/99 12/30/98 9/30/98 7/1/98
MMDA 2.03% 2.10% 2.23% 2.51% 2.51%
Cash Portfolio
All Taxable Money
Market Funds Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 4.69
Row: 1, Col: 2, Value: 4.35
Row: 1, Col: 3, Value: 2.03
Row: 2, Col: 1, Value: 4.63
Row: 2, Col: 2, Value: 4.35
Row: 2, Col: 3, Value: 2.1
Row: 3, Col: 1, Value: 4.970000000000001
Row: 3, Col: 2, Value: 4.53
Row: 3, Col: 3, Value: 2.23
Row: 4, Col: 1, Value: 5.29
Row: 4, Col: 2, Value: 4.930000000000001
Row: 4, Col: 3, Value: 2.51
Row: 5, Col: 1, Value: 5.33
Row: 5, Col: 2, Value: 5.04
Row: 5, Col: 3, Value: 2.51
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
table 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.
(checkmark)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.
The North Carolina Capital Management Trust: Cash Portfolio
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Robert Duby)
Robert Duby, Portfolio Manager of The North Carolina Capital
Management Trust: Cash Portfolio
Q. BOB, WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE YEAR THAT
ENDED JUNE 30, 1999?
A. The past year was very challenging in the market, with wide
fluctuations in both money market yields and market sentiment.
Consumer and market sentiment were at record-high levels, economic
data continued to exhibit robust strength, unemployment fell to
record-low levels, but inflation remained virtually non-existent. The
Federal Reserve Board lowered and then raised key short-term interest
rates, as global economic conditions changed dramatically. The rate
banks charge each other for overnight loans - known as the fed funds
rate - was initially lowered by 0.75 percentage points during the fall
of 1998 following the meltdown in world markets. It was then increased
by 0.25 percentage points on June 30 following the release of data
showing the continued solid strength of the U.S. economy during the
first half of 1999. At the same time the Fed raised rates, it
announced that its future bias toward monetary policy would be
neutral, meaning that short-term rates could be hiked or cut in the
future.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. My strategy over the past year was quite similar to strategies
followed in the past. The portfolio's average maturity was lengthened
during the crisis in the fall of 1998, when it was evident that
interest rates were being pushed lower. The maturity was then
shortened in the spring of 1999, as the economy continued to exhibit
strong growth. As U.S. Treasury bills rallied during the fall,
government agency notes selling at a discount continued to offer
substantial value and were used to lengthen the portfolio's maturity.
That proved to be a positive influence on performance, because since
that time agency discount notes have become more expensive, offering
lower yields. During May and June, the average maturity of the
portfolio was allowed to decline as economic data continued to show
strength and several comments by Fed members indicated that the next
move would be to increase interest rates. At the end of June 1999, the
average maturity of the fund was 43 days.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on June 30, 1999, was 4.70%, compared to
5.33% 12 months ago. Through June 30, 1999, the fund's 12-month total
return was 5.05%, compared to 4.68% for the all taxable money market
funds average tracked by IBC Financial Data, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. I believe we'll see at least one more rate hike by the Fed in the
next few months, unless growth subsides dramatically or another crisis
develops in the world. The market has already begun to price in the
possibility of another move in the near future, as economic data
remains robust. The other factor in this equation is the Year 2000
issue and how financial market participants will prepare for it.
Issuers have already begun to bring securities to market that come to
maturity in and beyond late January 2000, to avoid any unforeseen
problems over the turn of the year. The fourth quarter of 1999 will
present many challenges in the management of the portfolio, as supply
likely will be minimal and it will be necessary to manage the fund
with an eye toward meeting shareholder flows. The liquidity needs of
the shareholders will have to be assessed and decisions made to
address those needs early in the period. It is expected that the Fed
will maintain an even keel with its policy during the fourth quarter,
and it has already announced that it will be ready to provide any
additional liquidity should the need arise. A cautious approach will
be followed to meet our shareholder needs and necessary steps will be
taken so that all funds are fully invested at year-end.
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 OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE P-2.
(checkmark)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 June 30, 1999, more than $2.7
billion
MANAGER: Robert Duby, since 1998; joined
Fidelity in 1982
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: CASH PORTFOLIO
INVESTMENTS JUNE 30, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (A) - 90.2%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
American Express Credit Corp.
9/2/99 4.94% $ 50,000,000 $ 49,579,125
Asset Securitization Coop.
Corp.
7/26/99 4.95 60,000,000 59,795,000
8/2/99 5.08 15,000,000 14,932,667
Associates Corp. of North
America
8/12/99 5.04 7,000,000 6,959,167
Associates First Capital BV
7/20/99 4.91 12,000,000 11,969,347
Associates First Capital Corp.
8/9/99 4.99 50,000,000 49,731,875
12/14/99 5.39 10,000,000 9,757,917
Bank One Corp.
8/11/99 5.00 50,000,000 49,721,542
Bear Stearns Companies, Inc.
7/8/99 4.94 55,000,000 54,947,811
9/9/99 5.11 8,000,000 7,921,444
Centric Capital Corp.
7/6/99 4.94 10,000,000 9,993,167
7/7/99 5.13 5,000,000 4,995,733
7/16/99 5.10 20,000,000 19,957,667
7/21/99 5.07 10,000,000 9,971,944
7/26/99 4.87 4,500,000 4,484,969
7/27/99 4.87 10,633,000 10,596,062
7/28/99 4.88 4,666,000 4,649,132
8/12/99 4.90 15,000,000 14,915,300
8/16/99 4.93 15,000,000 14,906,658
1/31/00 5.60 35,000,000 33,872,339
CIESCO L.P.
7/12/99 4.95 10,000,000 9,984,936
7/28/99 5.13 30,000,000 29,885,025
8/12/99 5.04 15,000,000 14,912,500
8/18/99 5.29 10,000,000 9,930,000
8/25/99 5.10 75,000,000 74,421,354
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
CIT Group, Inc.
8/12/99 4.88% $ 30,000,000 $ 29,831,300
8/23/99 4.89 30,000,000 29,787,117
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
7/14/99 4.87 12,000,000 11,979,113
7/19/99 4.90 10,000,000 9,975,700
8/12/99 4.89 10,000,000 9,943,650
9/13/99 5.16 12,000,000 11,874,200
CXC, Inc.
7/6/99 4.86 10,000,000 9,993,306
7/19/99 4.95 25,000,000 24,938,500
7/20/99 4.87 8,900,000 8,877,359
11/10/99 5.04 50,000,000 49,098,000
Deere (John) Capital Corp.
8/25/99 4.89 10,000,000 9,926,361
Delaware Funding Corp.
7/14/99 4.95 12,070,000 12,048,556
7/14/99 5.10 10,121,000 10,102,434
7/16/99 4.90 50,000,000 49,898,750
7/22/99 5.05 15,580,000 15,534,286
7/26/99 5.13 17,000,000 16,939,674
8/11/99 4.88 20,000,000 19,890,211
9/15/99 5.17 15,000,000 14,838,500
Falcon Asset Securitization
7/8/99 4.96 10,000,000 9,990,394
7/8/99 5.04 20,000,000 19,980,439
7/9/99 4.94 20,000,000 19,978,133
7/13/99 4.87 5,055,000 5,046,878
7/15/99 4.95 35,000,000 34,933,033
7/19/99 5.06 11,805,000 11,775,251
7/29/99 5.21 10,000,000 9,959,711
8/4/99 5.11 9,590,000 9,543,989
8/16/99 5.19 10,000,000 9,934,194
9/15/99 5.14 10,000,000 9,892,967
Fleet Funding Corp.
7/12/99 5.02 8,128,000 8,115,582
7/14/99 4.95 16,000,000 15,971,573
7/15/99 4.95 10,304,000 10,284,285
COMMERCIAL PAPER (A) -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Ford Motor Credit Co.
7/14/99 4.93% $ 50,000,000 $ 49,911,528
7/16/99 4.86 65,000,000 64,869,729
7/19/99 4.86 25,000,000 24,939,875
GE Capital International
Funding, Inc.
8/16/99 5.10 20,000,000 19,870,689
8/24/99 5.12 5,000,000 4,961,975
8/30/99 5.12 15,000,000 14,873,250
8/31/99 5.12 30,000,000 29,742,275
General Electric Capital Corp.
7/26/99 4.93 20,000,000 19,933,056
8/18/99 4.93 20,000,000 19,871,733
8/30/99 5.00 35,000,000 34,711,833
General Electric Co.
7/19/99 4.89 45,000,000 44,892,450
General Motors Acceptance Corp.
7/20/99 4.86 40,000,000 39,898,667
7/26/99 4.88 10,000,000 9,966,597
8/16/99 4.88 30,000,000 29,815,617
8/18/99 4.88 20,000,000 19,871,733
Household Finance Corp.
12/13/99 5.31 25,000,000 24,407,604
International Business
Machines Corp.
7/1/99 5.80 50,000,000 50,000,000
Kitty Hawk Funding Corp.
7/6/99 4.87 14,000,000 13,990,608
7/15/99 4.91 8,517,000 8,500,870
7/15/99 4.95 46,742,000 46,652,567
7/26/99 4.87 22,278,000 22,203,585
8/16/99 4.97 11,000,000 10,931,831
8/16/99 4.98 20,000,000 19,875,800
8/23/99 5.11 10,000,000 9,925,506
9/13/99 5.16 10,000,000 9,895,372
Merrill Lynch & Co., Inc.
7/15/99 4.87 6,000,000 5,988,753
Monsanto Co.
7/8/99 4.86 12,990,000 12,977,825
7/14/99 5.04 7,500,000 7,486,404
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Morgan (JP) & Co., Inc.
7/14/99 4.87% $ 2,973,000 $ 2,967,825
7/15/99 4.89 5,000,000 4,990,569
7/21/99 4.86 75,000,000 74,800,000
8/4/99 4.87 35,000,000 34,841,003
9/22/99 5.23 25,000,000 24,702,583
National Rural Utility Coop.
Finance Corp.
8/5/99 4.90 38,000,000 37,820,819
8/17/99 4.91 20,000,000 19,873,361
New Center Asset Trust
7/21/99 4.87 20,000,000 19,946,556
7/22/99 4.87 50,000,000 49,859,708
7/28/99 4.88 6,000,000 5,978,310
8/9/99 4.91 21,000,000 20,890,118
8/11/99 5.01 15,000,000 14,915,267
Preferred Receivables Funding
Corp.
7/6/99 5.04 9,740,000 9,733,196
7/12/99 4.86 10,000,000 9,985,272
7/13/99 4.91 31,010,000 30,959,660
7/15/99 4.91 30,000,000 29,943,183
7/15/99 5.02 25,000,000 24,951,389
8/3/99 5.04 4,000,000 3,981,667
8/13/99 5.09 10,000,000 9,939,681
9/1/99 5.02 15,000,000 14,871,867
Salomon Smith Barney
Holdings, Inc.
7/19/99 4.96 50,000,000 49,876,750
7/20/99 4.95 10,000,000 9,974,033
8/3/99 5.08 10,000,000 9,953,708
8/17/99 4.88 25,000,000 24,842,681
Southern Co.
7/21/99 5.17 14,000,000 13,959,944
Three Rivers Funding Corp.
7/15/99 4.90 15,624,000 15,594,471
7/19/99 5.07 20,632,000 20,579,904
7/20/99 5.07 20,000,000 19,946,694
8/17/99 4.92 26,348,000 26,180,822
9/13/99 5.10 15,000,000 14,844,908
COMMERCIAL PAPER (A) -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Triple A One Funding Corp.
7/2/99 4.88% $ 11,624,000 $ 11,622,437
7/7/99 4.89 50,000,000 49,959,500
7/9/99 4.87 5,576,000 5,570,015
7/9/99 4.88 8,092,000 8,083,297
7/9/99 4.90 5,725,000 5,718,804
7/16/99 5.07 4,578,000 4,568,367
8/12/99 5.11 8,100,000 8,052,089
TOTAL COMMERCIAL PAPER 2,519,924,317
FEDERAL AGENCIES - 9.7%
FANNIE MAE - 4.1%
Discount Notes
8/13/99 4.85 13,000,000 12,925,544
8/17/99 4.85 25,000,000 24,843,660
8/17/99 4.86 28,000,000 27,824,533
11/12/99 4.87 50,000,000 49,115,972
114,709,709
FREDDIE MAC - 5.6%
Discount Notes
8/13/99 4.85 10,000,000 9,942,786
11/2/99 4.91 125,000,000 122,933,337
11/10/99 4.88 25,000,000 24,563,667
157,439,790
TOTAL FEDERAL AGENCIES 272,149,499
REPURCHASE AGREEMENTS - 0.1%
MATURITY AMOUNT
In a joint trading account $ 2,836,386 2,836,000
(U.S. Treasury Obligations)
dated 6/30/99 due 7/1/99 At
4.9%
TOTAL INVESTMENT IN $ 2,794,909,816
SECURITIES - 100%
Total Cost for Income Tax Purposes $ 2,794,909,816
</TABLE>
LEGEND
(a) Cash Portfolio only purchases commercial paper with the highest
possible ratings 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.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: CASH PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
ASSETS
Investment in securities, $ 2,794,909,816
at value (including
repurchase agreements of
$2,836,000) - See
accompanying schedule
Cash 779
Receivable for fund shares 255,706
sold
Interest receivable 387
TOTAL ASSETS 2,795,166,688
LIABILITIES
Payable for fund shares $ 532,128
redeemed
Distributions payable 1,620,344
Accrued management fee 766,713
Deferred trustees' 422,109
compensation
TOTAL LIABILITIES 3,341,294
NET ASSETS $ 2,791,825,394
Net Assets consist of:
Paid in capital $ 2,791,831,176
Accumulated net realized (5,782)
gain (loss) on investments
NET ASSETS, for $ 2,791,825,394
2,791,805,212 shares
outstanding
NET ASSET VALUE, $1.00
offering price and
redemption price per share
($2,791,825,394 (divided by)
2,791,805,212 shares)
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1999
INTEREST INCOME $ 153,993,371
EXPENSES
Management fee $ 9,315,346
Non-interested trustees' 120,763
compensation
Total expenses before 9,436,109
reductions
Expense reductions (2,631) 9,433,478
NET INTEREST INCOME 144,559,893
NET REALIZED GAIN 48,942
(LOSS) ON INVESTMENTS
NET INCREASE IN NET $ 144,608,835
ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30, 1999 YEAR ENDED JUNE 30, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest $ 144,559,893 $ 131,344,483
income
Net realized gain (loss) 48,942 3,799
NET INCREASE 144,608,835 131,348,282
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
Distributions to (144,559,893) (131,344,483)
shareholders from net
interest income
Share transactions at net 8,411,139,551 7,892,756,579
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 122,735,206 112,412,218
distributions from net
interest income
Cost of shares redeemed (8,222,523,769) (7,508,671,816)
NET INCREASE 311,350,988 496,496,981
(DECREASE) IN NET ASSETS AND
SHARES RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE 311,399,930 496,500,780
(DECREASE) IN NET ASSETS
NET ASSETS
Beginning of period 2,480,425,464 1,983,924,684
End of period $ 2,791,825,394 $ 2,480,425,464
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED JUNE 30, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .049 .053 .051 .053 .052
Operations Net interest
income
Less Distributions
From net interest income (.049) (.053) (.051) (.053) (.052)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN 5.05% 5.47% 5.25% 5.43% 5.28%
RATIOS AND SUPPLEMENTAL
DATA
Net assets, end of period $ 2,792 $ 2,480 $ 1,984 $ 1,740 $ 1,589
(in millions)
Ratio of expenses to .32% .34% .35% .36% .39%
average net assets
Ratio of net interest 4.92% 5.34% 5.13% 5.27% 5.22%
income to average net assets
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 year total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Term Portfolio 4.94% 30.79% 74.92%
LB 1-Year US Treasury 5.25% 33.69% 79.54%
Short US Government Funds 4.16% 30.95% 79.09%
Average
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, 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
Lehman Brothers 1-Year U.S. Treasury Index - a one security index
which at the beginning of every month selects the Treasury maturing
closest to but not beyond one year from that date. To measure how the
fund's performance stacked up against its peers, you can compare it to
the short U.S. government funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past one year average represents a peer group of 71 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 JUNE 30, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Term Portfolio 4.94% 5.52% 5.75%
LB 1-Year US Treasury 5.25% 5.98% 6.03%
Short US Government Funds 4.16% 5.53% 5.97%
Average
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
NCCMT-Term Portfolio LB 1-Year Treasury Index
00620 LB068
1989/06/30 10000.00 10000.00
1989/07/31 10104.58 10111.76
1989/08/31 10126.04 10153.20
1989/09/30 10188.13 10168.68
1989/10/31 10294.25 10296.76
1989/11/30 10366.55 10381.32
1989/12/31 10429.78 10439.08
1990/01/31 10471.92 10480.10
1990/02/28 10527.95 10542.88
1990/03/31 10589.60 10595.62
1990/04/30 10637.85 10649.62
1990/05/31 10743.55 10759.28
1990/06/30 10814.65 10853.88
1990/07/31 10921.98 10957.26
1990/08/31 10973.72 11021.72
1990/09/30 11045.54 11101.25
1990/10/31 11142.48 11196.68
1990/11/30 11236.57 11278.31
1990/12/31 11345.25 11400.11
1991/01/31 11431.38 11488.85
1991/02/28 11510.42 11557.91
1991/03/31 11569.06 11638.69
1991/04/30 11658.99 11719.06
1991/05/31 11715.07 11768.45
1991/06/30 11769.75 11809.47
1991/07/31 11838.20 11889.83
1991/08/31 11941.66 11995.73
1991/09/30 12017.70 12084.47
1991/10/31 12094.01 12172.78
1991/11/30 12180.52 12267.80
1991/12/31 12304.84 12379.14
1992/01/31 12335.72 12407.60
1992/02/29 12373.18 12436.06
1992/03/31 12377.66 12457.41
1992/04/30 12469.21 12524.80
1992/05/31 12532.87 12577.96
1992/06/30 12576.69 12642.84
1992/07/31 12614.41 12734.08
1992/08/31 12689.72 12791.01
1992/09/30 12764.15 12873.89
1992/10/31 12676.16 12847.10
1992/11/30 12638.10 12811.10
1992/12/31 12742.68 12839.56
1993/01/31 12873.81 12903.60
1993/02/28 12922.34 12945.04
1993/03/31 12957.11 12985.22
1993/04/30 13002.50 13029.59
1993/05/31 13008.25 13029.59
1993/06/30 13052.00 13091.54
1993/07/31 13089.76 13126.28
1993/08/31 13137.64 13186.14
1993/09/30 13170.37 13224.23
1993/10/31 13205.52 13255.20
1993/11/30 13226.43 13278.22
1993/12/31 13260.58 13324.26
1994/01/31 13308.26 13379.93
1994/02/28 13286.34 13364.03
1994/03/31 13295.29 13366.54
1994/04/30 13289.55 13355.24
1994/05/31 13325.54 13383.70
1994/06/30 13374.30 13429.74
1994/07/31 13437.18 13515.55
1994/08/31 13475.63 13562.43
1994/09/30 13518.43 13582.10
1994/10/31 13563.37 13637.77
1994/11/30 13569.37 13633.59
1994/12/31 13621.95 13682.56
1995/01/31 13745.70 13817.34
1995/02/28 13819.76 13941.23
1995/03/31 13903.18 14023.69
1995/04/30 13982.79 14126.66
1995/05/31 14080.57 14250.97
1995/06/30 14159.56 14337.62
1995/07/31 14211.78 14407.94
1995/08/31 14277.39 14476.58
1995/09/30 14340.65 14541.46
1995/10/31 14420.04 14623.92
1995/11/30 14512.17 14709.72
1995/12/31 14595.21 14796.37
1996/01/31 14675.51 14891.38
1996/02/29 14694.86 14910.64
1996/03/31 14719.20 14957.10
1996/04/30 14771.56 15012.35
1996/05/31 14822.95 15071.78
1996/06/30 14903.02 15155.92
1996/07/31 14958.16 15213.68
1996/08/31 15019.47 15288.18
1996/09/30 15128.11 15390.73
1996/10/31 15224.03 15506.68
1996/11/30 15301.49 15587.88
1996/12/31 15347.91 15643.13
1997/01/31 15412.51 15718.05
1997/02/28 15481.81 15774.56
1997/03/31 15501.21 15814.74
1997/04/30 15600.32 15911.43
1997/05/31 15689.83 16009.79
1997/06/30 15780.28 16106.48
1997/07/31 15875.15 16221.59
1997/08/31 15921.77 16277.26
1997/09/30 16022.76 16365.16
1997/10/31 16100.08 16455.99
1997/11/30 16145.19 16512.91
1997/12/31 16235.07 16590.35
1998/01/31 16329.18 16699.59
1998/02/28 16369.36 16742.29
1998/03/31 16449.29 16826.42
1998/04/30 16516.83 16903.86
1998/05/31 16587.26 16977.52
1998/06/30 16669.12 17058.31
1998/07/31 16736.69 17140.35
1998/08/31 16876.67 17278.05
1998/09/30 16997.55 17406.55
1998/10/31 17093.51 17498.22
1998/11/30 17114.45 17501.57
1998/12/31 17175.94 17559.75
1999/01/31 17238.20 17629.23
1999/02/28 17240.73 17648.91
1999/03/31 17339.66 17754.70
1999/04/30 17397.89 17820.02
1999/05/31 17438.76 17869.07
1999/06/30 17492.21 17954.05
IMATRL PRASUN SHR__CHT 19990630 19990714 135610 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in North Carolina Capital Management Trust: Term Portfolio on
June 30, 1989. As the chart shows, by June 30, 1999, the value of the
investment would have grown to $17,492 - a 74.92% increase on the
initial investment. For comparison, look at how the Lehman Brothers
1-Year U.S. Treasury Index did over the same period. With dividends
and capital gains, if any, reinvested, the same $10,000 investment
would have grown to $17,954 - an 79.54% increase.
(checkmark)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.
TOTAL RETURN COMPONENTS
YEARS ENDED JUNE 30,
1999 1998 1997 1996 1995
Dividend returns 6.62% 7.08% 7.62% 6.16% 5.26%
Capital returns -1.68% -1.45% -1.73% -0.91% 0.61%
Total returns 4.94% 5.63% 5.89% 5.25% 5.87%
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital 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, if
any, paid by the fund are reinvested.
DIVIDENDS AND YIELD
PERIODS ENDED JUNE 30, 1999 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 4.87(cents) 31.23(cents) 61.83(cents)
Annualized dividend rate 6.33% 6.69% 6.53%
30-day annualized yield 4.96% - -
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 $9.36
over the past one month, $9.42 over the past six months and $9.47 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
bond 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
(photograph of Robert Duby)
Robert Duby, Portfolio Manager of The North Carolina Capital
Management Trust: Term Portfolio
Q. HOW DID THE FUND PERFORM, BOB?
A. For the 12 months that ended June 30, 1999, the fund returned
4.94%. That compared to the 4.16% return of the short U.S. government
funds average, according to Lipper Inc. The Lehman Brothers 1-Year
U.S. Treasury Index returned 5.25% over the same 12-month period.
Q. WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE YEAR THAT ENDED
JUNE 30, 1999?
A. The past year was challenging, with wide fluctuations in both
yields and market sentiment. Consumer and market sentiment were at
record highs, the economy continued to exhibit robust strength,
unemployment fell to a record low, but inflation remained virtually
non-existent. The Federal Reserve Board lowered and then raised
short-term interest rates, as global economic conditions changed
dramatically. The rate banks charge each other for overnight loans -
the fed funds rate - was initially lowered by 0.75 percentage points
during the fall of 1998 following the meltdown in world markets. It
was then increased by 0.25 percentage points on June 30 following the
release of data showing continued strength in the U.S. economy during
the first half of 1999. At the same time that the Fed raised rates, it
announced a neutral bias toward monetary policy, meaning that
short-term rates could be hiked or cut in the future. In addition,
given the turmoil in the fall and trepidation surrounding Brazil's
financial crisis at the beginning of 1999, newly issued short-term
Treasury bills - Treasuries with three to six months duration -
rallied sharply with each crisis while "off-the-run" coupon securities
- - those that are a bit older and thus somewhat less liquid - barely
moved. This, compounded with concerns related to the Year 2000 issue,
caused the U.S. Treasury bill market to trade at a premium and in a
wide range.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. I structured the duration of the portfolio - its sensitivity to
changes in interest rates - in a similar manner to that of its
benchmark index, the Lehman Brothers 1-Year U.S. Treasury Index. I
used U.S. Treasury coupon securities in the one-year sector to
maintain this duration to benefit from the yield advantage they
enjoyed relative to Treasury bills. This strategy has been used in the
past and it worked well during the past year, even though there were
several months when U. S. Treasury bills outperformed similar
off-the-run coupon securities. This outperformance was due to the
"flight to quality" that occurred during the world economic crisis in
the fall of 1998 and the beginning of 1999 in Brazil.
Q. WHAT IS YOUR OUTLOOK?
A. I believe we'll see at least one more rate hike by the Fed in the
next few months, unless growth subsides dramatically or another crisis
develops in the world. The market has already priced in the
possibility of another move, as economic data remains robust. The
other factor is the Year 2000 issue and how market participants will
prepare for it. Issuers have begun to bring securities to market that
mature in and beyond late January 2000, to avoid unforeseen problems
over the turn of the year. The fourth quarter of 1999 will present
many challenges, as supply likely will be minimal and it will be
necessary to manage the fund with an eye toward meeting shareholder
flows. The liquidity needs of shareholders will be assessed and
decisions made to address those needs early in the period. It is
expected that the Fed will maintain an even keel with its policy
during the fourth quarter, and it has announced that it will be ready
to provide additional liquidity should the need arise. A cautious
approach will be followed to meet shareholder needs and necessary
steps will be taken so that all funds are fully invested at year-end.
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 OR OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE P-2.
(checkmark)FUND FACTS
GOAL: seeks to obtain a high level of current
income consistent with the preservation of
capital
START DATE: March 19, 1987
SIZE: as of June 30, 1999, more than $93
million
MANAGER: Robert Duby, since 1998; joined
Fidelity in 1982
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: TERM PORTFOLIO
INVESTMENTS JUNE 30, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - 98.4%
PRINCIPAL AMOUNT VALUE (NOTE 1)
U.S. TREASURY OBLIGATIONS -
98.4%
U.S. Treasury Notes:
6% 8/15/00 $ 18,140,000 $ 18,256,277
6.375% 5/15/00 37,000,000 37,335,220
7.75% 1/31/00 34,150,000 34,668,865
TOTAL U.S. GOVERNMENT AND 90,260,362
GOVERNMENT AGENCY OBLIGATIONS
(Cost $91,222,341)
CASH EQUIVALENTS - 1.6%
MATURITY AMOUNT
Investments in repurchase $ 1,492,203 1,492,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 4.9%,
dated 6/30/99 due 7/1/99
(Cost $1,492,000)
TOTAL INVESTMENT IN $ 91,752,362
SECURITIES - 100%
(Cost $92,714,341)
</TABLE>
INCOME TAX INFORMATION
At June 30, 1999, the aggregate cost of investment securities for
income tax purposes was $92,714,341. Net unrealized depreciation
aggregated $961,979, all of which was related to depreciated
investment securities.
At June 30, 1999, the fund had a capital loss carryforward of
approximately $2,941,000, of which $244,000, $450,000 $1,410,000 and
$837,000 will expire on June 30, 2003, 2005, 2006 and 2007,
respectively.
The fund intends to elect to defer to its fiscal year ending June 30,
2000 approximately $626,000 of losses recognized during the period
November 1, 1998 to June 30, 1999.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: TERM PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 1999
ASSETS
Investment in securities, $ 91,752,362
at value (including
repurchase agreements of
$1,492,000) (cost
$92,714,341) - See
accompanying schedule
Cash 737
Interest receivable 1,797,408
TOTAL ASSETS 93,550,507
LIABILITIES
Distributions payable $ 169,185
Accrued management fee 27,169
Deferred trustees' 16,927
compensation
TOTAL LIABILITIES 213,281
NET ASSETS $ 93,337,226
Net Assets consist of:
Paid in capital $ 97,870,698
Distributions in excess (4,812)
of net investment income
Accumulated undistributed (3,566,681)
net realized gain (loss) on
investments
Net unrealized (961,979)
appreciation (depreciation)
on investments
NET ASSETS, for $ 93,337,226
9,980,780 shares outstanding
NET ASSET VALUE, $9.35
offering price and
redemption price per share
($93,337,226 (divided by)
9,980,780 shares)
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 1999
INVESTMENT INCOME $ 5,929,347
Interest
EXPENSES
Management fee $ 299,939
Non-interested trustees' 5,412
compensation
Total expenses before 305,351
reductions
Expense reductions (637) 304,714
NET INVESTMENT INCOME 5,624,633
REALIZED AND UNREALIZED (661,202)
GAIN (LOSS)
Net realized gain (loss)
on investment securities
Change in net unrealized (876,705)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (1,537,907)
NET INCREASE $ 4,086,726
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30, 1999 YEAR ENDED JUNE 30, 1998
INCREASE (DECREASE) IN
NET ASSETS
Operations Net investment $ 5,624,633 $ 4,921,448
income
Net realized gain (loss) (661,202) (1,180,156)
Change in net unrealized (876,705) 201,545
appreciation (depreciation)
NET INCREASE 4,086,726 3,942,837
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
Distributions to (5,662,895) (4,929,033)
shareholders from net
investment income
Share transactions Net 19,918,622 8,868,073
proceeds from sales of shares
Reinvestment of 3,730,602 3,286,603
distributions
Cost of shares redeemed (4,274,004) (4,357,338)
NET INCREASE 19,375,220 7,797,338
(DECREASE) IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE 17,799,051 6,811,142
(DECREASE) IN NET ASSETS
NET ASSETS
Beginning of period 75,538,175 68,727,033
End of period (including $ 93,337,226 $ 75,538,175
distributions in excess of
net investment income of
$4,812 and undistributed
net investment income of
$33,450, respectively)
OTHER INFORMATION
Shares
Sold 2,096,305 926,501
Issued in reinvestment 394,533 343,490
of distributions
Redeemed (451,216) (454,028)
Net increase (decrease) 2,039,622 815,963
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED JUNE 30, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, $ 9.510 $ 9.650 $ 9.820 $ 9.910 $ 9.850
beginning of period
Income from Investment .615 B .660 B .729 B .601 .505
Operations Net investment
income
Net realized and unrealized (.157) (.134) (.170) (.093) .059
gain (loss)
Total from investment .458 .526 .559 .508 .564
operations
Less Distributions
From net investment income (.618) (.666) (.729) (.598) (.504)
Net asset value, end of $ 9.350 $ 9.510 $ 9.650 $ 9.820 $ 9.910
period
TOTAL RETURN A 4.94% 5.63% 5.89% 5.25% 5.87%
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period $ 93 $ 76 $ 69 $ 64 $ 70
(in millions)
Ratio of expenses to .35% .36% .37% .38% .41%
average net assets
Ratio of expenses to .35% .35% C .37% .38% .41%
average net assets after
expense reductions
Ratio of net investment 6.51% 6.93% 7.48% 6.06% 5.12%
income to average net assets
Portfolio turnover rate 256% 433% 232% 89% 519%
</TABLE>
A THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.
B NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1999
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 government 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 require 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 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.
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.
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.
Distributions in excess of 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 long-term U.S. government and
government obligations, aggregated $217,076,935 and $197,936,992,
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 .290% to .350% of each fund's
average net assets. For the period, the management fees paid to FMR
were equivalent to an annual rate of .32% and .35% for the Cash and
Term Portfolios, respectively.
SUB-ADVISER FEE. As each funds' investment sub-adviser (effective
January 1, 1999 for Term Portfolio), Fidelity Investments Money
Management, 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 each
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 .15% of each fund's
average net assets. For the period, FMR paid FDC $4,309,638 and
$129,747 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.
5. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of each fund with the
funds' 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 $2,631 and $637, respectively, under these arrangements.
6. BENEFICIAL INTEREST.
At the end of the period, one shareholder was record owner of
approximately 15% of the total outstanding shares of the Term
Portfolio.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of The North Carolina Capital Management Trust and the
Shareholders of Cash Portfolio and Term Portfolio:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Cash Portfolio and Term Portfolio (funds of The North Carolina Capital
Management Trust) at June 30, 1999, and the results of their
operations, the changes in their net assets and the financial
highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements")
are the responsibility of The North Carolina Capital Management
Trust's management; our responsibility is to express an opinion on
these financial statements based on our audits. We conducted our
audits of these financial statements in accordance with generally
accepted auditing standards which require that we plan and perform the
audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at June 30,
1999 by correspondence with the custodian, provide a reasonable basis
for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 10, 1999
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
Boyce I. Greer, VICE PRESIDENT
Robert K. Duby, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
Thomas J. Simpson, 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
Fidelity Investments Money Management, Inc. (FIMM)
Merrimack, NH
TRANSFER AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
*INDEPENDENT TRUSTEES
