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, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Cash Portfolio 5.69% 29.95% 63.13%
All Taxable Money Market 5.23% 28.03% 59.03%
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 iMoneyNet, Inc. The past one year
average represents a peer group of 970 money market funds.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Cash Portfolio 5.69% 5.38% 5.02%
All Taxable Money Market 5.23% 5.06% 4.74%
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
6/27/00 3/28/00 12/28/99 9/28/99 6/29/99
NCCMT - Cash Portfolio 6.40% 5.77% 5.70% 5.19% 4.69%
All Taxable Money Market 5.91% 5.38% 5.13% 4.71% 4.35%
Funds Average
6/28/00 3/29/00 12/29/99 9/29/99 6/30/99
MMDA 2.11% 2.04% 2.07% 2.08% 2.03%
Cash Portfolio
All Taxable Money
Market Funds Average
MMDA
6% -
5% -
4% -
3% -
2% -
1% -
0%
Row: 1, Col: 1, Value: 6.4
Row: 1, Col: 2, Value: 5.91
Row: 1, Col: 3, Value: 2.11
Row: 2, Col: 1, Value: 5.770000000000001
Row: 2, Col: 2, Value: 5.38
Row: 2, Col: 3, Value: 2.04
Row: 3, Col: 1, Value: 5.7
Row: 3, Col: 2, Value: 5.13
Row: 3, Col: 3, Value: 2.07
Row: 4, Col: 1, Value: 5.19
Row: 4, Col: 2, Value: 4.71
Row: 4, Col: 3, Value: 2.08
Row: 5, Col: 1, Value: 4.69
Row: 5, Col: 2, Value: 4.35
Row: 5, Col: 3, Value: 2.03
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
averageare from iMoneyNet, 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 12 MONTHS
THAT ENDED JUNE 30, 2000?
A. Interest rates rose due to strong economic performance, evidenced
by the lowest unemployment rate in approximately 30 years and robust
gains in real gross domestic product - GDP adjusted for inflation.
Personal consumption, business investment and a strong real estate
market fueled growth. The wealth effect created by appreciating equity
and real estate markets also boosted consumer spending, a significant
component of real GDP. An increase in commodity prices linked to
improving global economic conditions, coupled with strong domestic
demand, created expectations among market participants that the
Federal Reserve Board would hike short-term interest rates in order to
slow growth and head off inflation. In spite of improvements in
productivity, consumer and producer prices ultimately rose during the
period, sparked mainly by increasing energy prices.
Q. WHAT WAS THE FED'S REACTION TO THESE DEVELOPMENTS?
A. Strong real GDP growth and concerns about the impact of wage
pressures within firm labor markets encouraged the Fed to implement a
program of interest-rate hikes. From June 30, 1999, through June 30,
2000, the Fed raised the rate banks charge each other for overnight
loans - known as the fed funds target rate - six times. All of these
rate hikes came in increments of 0.25 percentage points, except for
the last, which occurred in May 2000. Faced with continued strong GDP
growth, an increase in the core rate of inflation, a decline in the
unemployment rate and a larger-than-expected increase in average
hourly earnings, the Fed in May raised the fed funds rate by 0.50
percentage points, the first increase of such magnitude in over five
years. However, recent evidence of an economic slowdown prompted the
Fed to keep rates unchanged at its June 2000 meeting.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. During the period, our strategy shifted to capitalize on Fed rate
hikes while at the same time maintaining adequate portfolio liquidity
to accommodate cash outflows. Early in the period, the fund's average
maturity was lengthened through purchases of securities with
maturities of six months or longer because longer-term securities
offered attractive risk/reward tradeoffs. However, as expectations for
further Fed rate increases developed in the fourth quarter and the
turn to 2000 approached, we became more defensive by shortening the
fund's average maturity. Over the balance of the period, the fund's
average maturity was shortened at times when the market priced in
overly optimistic expectations for changes in monetary policy, and
lengthened when the market priced in overly aggressive expectations of
Fed rate hikes.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield on June 30, 2000, was 6.41%, compared to
4.70% 12 months ago. Through June 30, 2000, the fund's 12-month total
return was 5.69%, compared to 5.23% for the all taxable money market
funds average tracked by iMoneyNet, Inc.
Q. WHAT IS YOUR OUTLOOK?
A. Recent economic data suggests that Fed monetary policy has begun to
dampen economic activity. Fed rate hikes appear to have tempered
consumer spending, as evidenced by recent statistics showing slower
retail and home sales. As a result, manufacturing activity has
softened within interest-rate sensitive sectors, while employment has
recently declined from record levels. It's uncertain at this point if
the economy is taking a breather or if the Fed has achieved a
so-called "soft landing." Market prices currently reflect the belief
that the Fed has finished its rate-hike program. However, we believe
the Fed might implement at least one more rate hike in the near
future.
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
UPON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, PLEASE SEE PAGE
P-2.
(checkmark)FUND FACTS
GOAL: seeks to obtain as high a level of current
income as is consistent with the preservation of
capital and liquidity, and to maintain a constant
net asset value of $1.00 per share
START DATE: September 2, 1982
SIZE: as of June 30, 2000, more than
$2.8 billion
MANAGER: Robert Duby, since 1998;
joined Fidelity in 1982
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: CASH PORTFOLIO
INVESTMENTS JUNE 30, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
COMMERCIAL PAPER (A) - 88.0%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
American General Finance Corp.
8/16/00 6.76% $ 25,000,000 $ 24,787,250
Asset Securitization Coop.
Corp.
7/19/00 6.59 25,000,000 24,918,125
Associates First Capital Corp.
9/11/00 6.71 25,000,000 24,670,000
Bank of America Corp.
8/3/00 6.24 50,000,000 49,722,708
9/11/00 6.30 50,000,000 49,390,000
11/6/00 6.84 21,000,000 20,506,453
11/20/00 7.00 15,000,000 14,600,625
Bear Stearns Companies, Inc.
7/5/00 6.55 50,000,000 49,964,000
Centric Capital Corp.
7/5/00 6.58 9,700,000 9,692,941
7/20/00 6.62 26,540,000 26,447,832
9/5/00 6.71 25,000,000 24,697,042
CIESCO LP
8/16/00 6.69 25,000,000 24,789,167
8/23/00 6.70 50,000,000 49,514,167
CIT Group, Inc.
7/3/00 7.04 50,000,000 49,980,444
7/19/00 6.60 25,000,000 24,918,000
9/5/00 6.72 10,000,000 9,879,000
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
7/10/00 6.59 25,000,000 24,959,063
7/13/00 6.59 35,000,000 34,923,583
7/19/00 6.61 25,000,000 24,917,875
8/10/00 6.77 5,000,000 4,963,000
8/17/00 6.65 20,000,000 19,828,189
Citicorp
7/25/00 6.62 50,000,000 49,780,667
Corporate Receivables Corp.
7/24/00 6.69 50,000,000 49,788,847
8/7/00 6.70 25,000,000 24,829,132
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Delaware Funding Corp.
7/7/00 6.58% $ 25,000,000 $ 24,972,750
7/20/00 6.63 25,000,000 24,913,049
7/20/00 6.71 25,000,000 24,911,861
8/3/00 6.65 30,296,000 30,113,265
8/16/00 6.65 25,000,000 24,789,806
Edison Asset Securitization LLC
7/5/00 7.06 24,273,000 24,253,986
7/20/00 6.59 13,449,000 13,402,508
8/14/00 6.72 50,000,000 49,594,833
8/21/00 6.65 28,504,000 28,238,295
Enterprise Funding Corp.
7/26/00 6.70 35,240,000 35,077,015
8/21/00 6.66 26,183,000 25,938,931
Falcon Asset Securitization
Corp.
7/7/00 6.58 21,480,000 21,456,551
7/27/00 6.71 20,000,000 19,903,656
8/10/00 6.64 30,000,000 29,780,667
Fleet Funding Corp.
7/10/00 6.59 50,000,000 49,918,125
7/12/00 6.59 25,000,000 24,949,965
GE Capital International
Funding, Inc.
9/13/00 6.34 50,000,000 49,368,944
General Electric Capital Corp.
8/23/00 6.77 40,000,000 39,608,389
8/25/00 6.76 45,000,000 44,542,813
General Electric Capital
Services, Inc.
8/17/00 6.28 35,000,000 34,722,635
11/20/00 7.00 75,000,000 73,003,125
General Motors Acceptance Corp.
8/22/00 6.77 100,000,000 99,039,444
8/23/00 6.74 50,000,000 49,512,694
Goldman Sachs Group, Inc.
8/15/00 6.77 50,000,000 49,583,750
8/16/00 6.77 50,000,000 49,574,500
COMMERCIAL PAPER (A) -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Kitty Hawk Funding Corp.
7/18/00 6.65% $ 39,663,000 $ 39,539,571
7/26/00 6.66 10,555,000 10,506,476
8/11/00 6.27 5,000,000 4,965,378
8/15/00 6.27 5,000,000 4,962,000
9/20/00 6.41 5,000,000 4,930,138
Marsh USA, Inc.
9/19/00 6.50 30,000,000 29,580,000
Merrill Lynch & Co., Inc.
8/23/00 6.78 60,000,000 59,411,700
National Rural Utility Coop.
Finance Corp.
9/13/00 6.30 25,000,000 24,686,528
New Center Asset Trust
7/3/00 7.04 50,000,000 49,980,444
7/24/00 6.68 50,000,000 49,788,847
7/28/00 6.64 25,000,000 24,876,625
Park Avenue Receivables Corp.
7/19/00 6.62 23,190,000 23,113,705
7/20/00 6.63 20,000,000 19,930,333
Preferred Receivables Funding
Corp.
7/20/00 6.65 39,993,000 39,853,269
8/4/00 6.64 20,000,000 19,875,711
Salomon Smith Barney
Holdings, Inc.
7/19/00 6.58 25,000,000 24,918,250
7/20/00 6.59 23,000,000 22,920,490
8/15/00 6.76 100,000,000 99,168,750
Three Rivers Funding Corp.
7/18/00 6.62 32,012,000 31,912,532
Triple-A One Funding Corp.
7/7/00 6.58 29,162,000 29,130,198
7/10/00 6.65 20,189,000 20,155,688
7/10/00 6.67 5,601,000 5,591,730
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Variable Funding Capital Corp.
7/10/00 6.58% $ 25,000,000 $ 24,959,125
7/20/00 6.67 49,500,000 49,327,575
8/24/00 6.78 25,000,000 24,750,250
9/12/00 6.74 25,700,000 25,354,485
Ventures Business Trust
7/12/00 6.59 25,000,000 24,949,965
Wells Fargo & Co.
9/12/00 6.71 50,000,000 49,330,833
9/13/00 6.72 25,000,000 24,660,319
TOTAL COMMERCIAL PAPER 2,516,770,582
FEDERAL AGENCIES - 12.2%
FANNIE MAE - 10.1%
Discount Notes - 10.1%
7/27/00 6.01 100,000,000 99,578,765
8/17/00 6.13 15,000,000 14,883,479
8/24/00 6.12 65,612,000 65,027,397
8/24/00 6.13 60,000,000 59,464,500
8/31/00 6.11 50,000,000 49,497,597
288,451,738
FREDDIE MAC - 2.1%
Discount Notes - 2.1%
2/1/01 6.57 12,000,000 11,558,533
2/7/01 6.50 50,000,000 48,127,639
59,686,172
TOTAL FEDERAL AGENCIES 348,137,910
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 0.0%
MATURITY AMOUNT VALUE (NOTE 1)
In a joint trading account $ 553,304 $ 553,000
(U.S. Treasury Obligations)
dated 6/30/00 due 7/3/00 At
6.6% (Cost $553,000)
TOTAL INVESTMENT IN 2,865,461,492
SECURITIES - 100.2%
NET OTHER ASSETS - (0.2)% (6,787,910)
NET ASSETS - 100% $ 2,858,673,582
Total Cost for Income Tax Purposes $ 2,865,461,492
</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.
INCOME TAX INFORMATION
At June 30, 2000, the fund had a capital loss carryforward of
approximately $170,000 all of which will expire on June 30, 2008.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: CASH PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
ASSETS
Investment in securities, $ 2,865,461,492
at value (including
repurchase agreements of
$553,000) - See
accompanying schedule
Cash 363
Receivable for fund shares 70,952
sold
Interest receivable 110
TOTAL ASSETS 2,865,532,917
LIABILITIES
Payable for fund shares $ 3,803,556
redeemed
Distributions payable 1,950,042
Accrued management fee 596,628
Deferred trustees' 509,109
compensation
TOTAL LIABILITIES 6,859,335
NET ASSETS $ 2,858,673,582
Net Assets consist of:
Paid in capital $ 2,858,842,190
Accumulated net realized (168,608)
gain (loss) on investments
NET ASSETS, for $ 2,858,673,582
2,858,816,226 shares
outstanding
NET ASSET VALUE, $1.00
offering price and
redemption price per share
($2,858,673,582 (divided by)
2,858,816,226 shares)
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 2000
INTEREST INCOME $ 170,793,056
EXPENSES
Management fee $ 9,008,982
Non-interested trustees' 169,212
compensation
Total expenses before 9,178,194
reductions
Expense reductions (7,886) 9,170,308
NET INTEREST INCOME 161,622,748
NET REALIZED GAIN (162,826)
(LOSS) ON INVESTMENTS
NET INCREASE IN NET $ 161,459,922
ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30, 2000 YEAR ENDED JUNE 30, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest $ 161,622,748 $ 144,559,893
income
Net realized gain (loss) (162,826) 48,942
NET INCREASE 161,459,922 144,608,835
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
Distributions to (161,622,748) (144,559,893)
shareholders from net
interest income
Share transactions at net 8,069,215,961 8,411,139,551
asset value of $1.00 per
share Proceeds from sales of
shares
Reinvestment of 140,467,872 122,735,206
distributions from net
interest income
Cost of shares redeemed (8,142,672,819) (8,222,523,769)
NET INCREASE 67,011,014 311,350,988
(DECREASE) IN NET ASSETS AND
SHARES RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE 66,848,188 311,399,930
(DECREASE) IN NET ASSETS
NET ASSETS
Beginning of period 2,791,825,394 2,480,425,464
End of period $ 2,858,673,582 $ 2,791,825,394
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED JUNE 30, 2000 1999 1998 1997 1996
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment .056 .049 .053 .051 .053
Operations Net interest
income
Less Distributions
From net interest income (.056) (.049) (.053) (.051) (.053)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN 5.69% 5.05% 5.47% 5.25% 5.43%
RATIOS AND SUPPLEMENTAL
DATA
Net assets, end of period $ 2,859 $ 2,792 $ 2,480 $ 1,984 $ 1,740
(in millions)
Ratio of expenses to .32% .32% .34% .35% .36%
average net assets
Ratio of net interest 5.56% 4.92% 5.34% 5.13% 5.27%
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, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Term Portfolio 5.01% 29.73% 69.85%
LB 1-Year US Treasury 5.11% 31.62% 73.87%
Short US Government Funds 4.49% 27.30% 74.09%
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 75 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, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
NCCMT - Term Portfolio 5.01% 5.34% 5.44%
LB 1-Year US Treasury 5.11% 5.65% 5.69%
Short US Government Funds 4.49% 4.94% 5.68%
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. (Note: Lipper calculates average annual
total returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
results.)
$10,000 OVER 10 YEARS
NCCMT-Term Portfolio LB 1-Year Treasury Index
00620 LB068
1990/06/30 10000.00 10000.00
1990/07/31 10099.25 10095.25
1990/08/31 10147.09 10154.64
1990/09/30 10213.50 10227.91
1990/10/31 10303.14 10315.84
1990/11/30 10390.14 10391.04
1990/12/31 10490.63 10503.26
1991/01/31 10570.27 10585.01
1991/02/28 10643.36 10648.64
1991/03/31 10697.58 10723.07
1991/04/30 10780.74 10797.12
1991/05/31 10832.59 10842.62
1991/06/30 10883.16 10880.41
1991/07/31 10946.45 10954.46
1991/08/31 11042.11 11052.02
1991/09/30 11112.43 11133.78
1991/10/31 11182.99 11215.15
1991/11/30 11262.98 11302.69
1991/12/31 11377.94 11405.27
1992/01/31 11406.49 11431.49
1992/02/29 11441.13 11457.71
1992/03/31 11445.27 11477.38
1992/04/30 11529.92 11539.47
1992/05/31 11588.79 11588.45
1992/06/30 11629.31 11648.22
1992/07/31 11664.19 11732.29
1992/08/31 11733.82 11784.74
1992/09/30 11802.65 11861.09
1992/10/31 11721.28 11836.41
1992/11/30 11686.10 11803.25
1992/12/31 11782.79 11829.47
1993/01/31 11904.04 11888.47
1993/02/28 11948.92 11926.65
1993/03/31 11981.07 11963.67
1993/04/30 12023.04 12004.55
1993/05/31 12028.36 12004.55
1993/06/30 12068.82 12061.63
1993/07/31 12103.73 12093.63
1993/08/31 12148.01 12148.78
1993/09/30 12178.27 12183.87
1993/10/31 12210.77 12212.41
1993/11/30 12230.11 12233.62
1993/12/31 12261.69 12276.04
1994/01/31 12305.77 12327.33
1994/02/28 12285.50 12312.68
1994/03/31 12293.78 12314.99
1994/04/30 12288.47 12304.58
1994/05/31 12321.75 12330.80
1994/06/30 12366.84 12373.22
1994/07/31 12424.98 12452.28
1994/08/31 12460.54 12495.47
1994/09/30 12500.11 12513.59
1994/10/31 12541.66 12564.88
1994/11/30 12547.21 12561.03
1994/12/31 12595.83 12606.15
1995/01/31 12710.26 12730.32
1995/02/28 12778.75 12844.47
1995/03/31 12855.88 12920.44
1995/04/30 12929.49 13015.31
1995/05/31 13019.90 13129.84
1995/06/30 13092.94 13209.67
1995/07/31 13141.23 13274.46
1995/08/31 13201.90 13337.70
1995/09/30 13260.40 13397.48
1995/10/31 13333.80 13473.45
1995/11/30 13418.99 13552.50
1995/12/31 13495.78 13632.33
1996/01/31 13570.03 13719.87
1996/02/29 13587.92 13737.61
1996/03/31 13610.43 13780.42
1996/04/30 13658.85 13831.32
1996/05/31 13706.37 13886.08
1996/06/30 13780.40 13963.60
1996/07/31 13831.39 14016.81
1996/08/31 13888.08 14085.46
1996/09/30 13988.54 14179.94
1996/10/31 14077.23 14286.76
1996/11/30 14148.85 14361.57
1996/12/31 14191.78 14412.48
1997/01/31 14251.51 14481.51
1997/02/28 14315.59 14533.57
1997/03/31 14333.53 14570.59
1997/04/30 14425.17 14659.67
1997/05/31 14507.94 14750.30
1997/06/30 14591.58 14839.38
1997/07/31 14679.30 14945.43
1997/08/31 14722.41 14996.72
1997/09/30 14815.79 15077.71
1997/10/31 14887.29 15161.39
1997/11/30 14929.00 15213.84
1997/12/31 15012.11 15285.18
1998/01/31 15099.13 15385.83
1998/02/28 15136.28 15425.17
1998/03/31 15210.20 15502.68
1998/04/30 15272.65 15574.02
1998/05/31 15337.77 15641.90
1998/06/30 15413.47 15716.32
1998/07/31 15475.94 15791.91
1998/08/31 15605.38 15918.78
1998/09/30 15717.15 16037.18
1998/10/31 15805.88 16121.63
1998/11/30 15825.25 16124.72
1998/12/31 15882.11 16178.32
1999/01/31 15939.67 16242.34
1999/02/28 15942.01 16260.46
1999/03/31 16033.49 16357.93
1999/04/30 16087.33 16418.11
1999/05/31 16125.13 16463.31
1999/06/30 16174.55 16541.60
1999/07/31 16243.83 16612.55
1999/08/31 16293.51 16661.82
1999/09/30 16375.73 16749.02
1999/10/31 16426.57 16796.42
1999/11/30 16474.50 16829.85
1999/12/31 16525.43 16865.54
2000/01/31 16575.08 16909.88
2000/02/29 16655.76 16993.27
2000/03/31 16735.46 17072.78
2000/04/30 16803.42 17170.89
2000/05/31 16875.03 17258.46
2000/06/30 16985.42 17387.13
IMATRL PRASUN SHR__CHT 20000630 20000719 141814 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, 1990. As the chart shows, by June 30, 2000, the value of the
investment would have grown to $16,985 - a 69.85% 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 $17,387 - a 73.87% 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,
2000 1999 1998 1997 1996
Dividend returns 5.76% 6.62% 7.08% 7.62% 6.16%
Capital returns -0.75% -1.68% -1.45% -1.73% -0.91%
Total returns 5.01% 4.94% 5.63% 5.89% 5.25%
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, 2000 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 5.06(cents) 26.55(cents) 52.59(cents)
Annualized dividend rate 6.63% 5.74% 5.65%
30-day annualized yield 6.24% - -
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 $9.28
over the past one month, $9.28 over the past six months and $9.30 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, 2000, the fund returned
5.01%, compared to the 4.49% return of the short U.S. government funds
average for the same period, according to Lipper Inc. The Lehman
Brothers 1-Year U.S. Treasury Index returned 5.11% over the same
period.
Q. WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PERIOD?
A. U.S. economic growth was strong. Real GDP - gross domestic product
adjusted for inflation - grew at a robust rate, sustained by a strong
real estate market as well as vibrant consumer spending and business
investment. Unemployment reached its lowest level in about 30 years.
Appreciating equity and real estate prices fueled a wealth effect,
helping to boost consumer spending, a major component of real GDP. A
renaissance of global economic growth led to rising commodity prices.
Coupled with strong domestic demand, this growth led to anticipation
that the Federal Reserve Board would raise short-term interest rates
in an attempt to subdue growth and inflationary pressures. Producer
and consumer prices also rose during the period, mainly due to higher
energy prices.
Q. DID THE FED FOLLOW THROUGH WITH THE EXPECTED RATE INCREASES?
A. Yes, even though improvements in productivity helped dampen
inflation. Strong growth and tight labor markets spurred the Fed to
embark on an extended program of interest-rate hikes. Starting on June
30, 1999, the Fed raised the rate banks charge each other for
overnight loans - known as the fed funds target rate - six times. All
but one of these rate hikes came in increments of 0.25 percentage
points. The last hike, on May 16, 2000, was an increase of 0.50
percentage points, the first time the Fed raised rates that
dramatically in more than five years. The Fed acted aggressively
because of strong GDP growth, an increase in the core rate of
inflation, a decline in the unemployment rate and a
larger-than-expected increase in average hourly earnings. However, the
Fed held off raising rates at its June 2000 meeting because of
evidence that the economy was slowing.
Q. WHAT WAS YOUR STRATEGY WITH THE FUND?
A. The fund is managed with an eye toward the Lehman Brothers 1-Year
U.S. Treasury Index. This benchmark is composed of the most-recently
issued one-year Treasury bills. Although the fund maintained a
maturity distribution consistent with that of the benchmark, its
composition differed from the index. The fund was largely invested in
"off-the-run" Treasury bills and notes - those that have been in the
market longer than the most-recently issued "on-the-run" Treasury
securities - because they offered modestly higher yields than
"on-the-run" securities of similar maturity. Furthermore, strong
demand for the most-recently issued one-year Treasury bill - resulting
from an expectation that issuance of the instrument would be limited
or eliminated altogether because of reduced Treasury borrowing and a
$30 billion long-term debt buyback program - caused it to trade
expensively. Demand for "on-the-run" Treasury bills caused the
one-year Treasury bill to become relatively illiquid, reducing the
overall yield of the benchmark index. The fund therefore benefited
from focusing on "off-the-run" alternatives.
Q. WHAT IS YOUR OUTLOOK?
A. Recently released economic data suggest that Fed rate hikes are
slowing economic activity. Dampened retail and home sales indicate
consumer spending has declined. In turn, we've seen a manufacturing
slowdown in interest-rate sensitive sectors, and employment has
dropped. We don't know whether this data means the economy has just
paused or if the Fed has successfully orchestrated a "soft landing."
The market has priced in the expectation that the Fed has completed
its rate-hike program, but we feel that the Fed is not done and will
raise rates again.
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
UPON MARKET OR OTHER CONDITIONS. FOR MORE INFORMATION, PLEASE SEE PAGE
P-2.
(checkmark)FUND FACTS
GOAL: seeks to obtain as high a level of current
income as is consistent with the preservation
of capital
START DATE: March 19, 1987
SIZE: as of June 30, 2000, more than $80
million
MANAGER: Robert Duby, since 1998; joined
Fidelity in 1982
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: TERM PORTFOLIO
INVESTMENTS JUNE 30, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - 95.6%
PRINCIPAL AMOUNT VALUE (NOTE 1)
U.S. TREASURY OBLIGATIONS -
95.6%
U.S. Treasury Bills, yield at $ 14,000,000 $ 13,258,896
date of purchase 6.21% to
6.34% 5/31/01
U.S. Treasury Bonds 13.125% 16,200,000 17,098,614
5/15/01
U.S. Treasury Notes:
5.625% 11/30/00 18,690,000 18,640,285
6% 8/15/00 2,740,000 2,740,000
8% 5/15/01 25,000,000 25,308,500
TOTAL U.S. GOVERNMENT AND 77,046,295
GOVERNMENT AGENCY
OBLIGATIONS (Cost
$77,229,935)
CASH EQUIVALENTS - 3.8%
MATURITY AMOUNT
Investments in repurchase $ 3,021,661 3,020,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 6.6%,
dated 6/30/00 due 7/3/00
(Cost $3,020,000)
TOTAL INVESTMENT IN 80,066,295
SECURITIES - 99.4%
(Cost $80,249,935)
NET OTHER ASSETS - 0.6% 485,999
NET ASSETS - 100% $ 80,552,294
</TABLE>
INCOME TAX INFORMATION
At June 30, 2000, the aggregate cost of investment securities for
income tax purposes was $80,249,935. Net unrealized depreciation
aggregated $183,640, of which $96,743 related to appreciated
investment securities and $280,383 related to depreciated investment
securities.
At June 30, 2000, the fund had a capital loss carryforward of
approximately $4,604,000 of which $244,000, $450,000, $1,410,000,
$837,000 and $1,663,000 will expire on June 30, 2003, 2005, 2006, 2007
and 2008, respectively.
THE NORTH CAROLINA CAPITAL MANAGEMENT TRUST: TERM PORTFOLIO
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000
ASSETS
Investment in securities, $ 80,066,295
at value (including
repurchase agreements of
$3,020,000) (cost
$80,249,935) - See
accompanying schedule
Cash 839
Interest receivable 665,767
TOTAL ASSETS 80,732,901
LIABILITIES
Distributions payable $ 141,768
Accrued management fee 18,952
Deferred trustees' 19,887
compensation
TOTAL LIABILITIES 180,607
NET ASSETS $ 80,552,294
Net Assets consist of:
Paid in capital $ 85,761,013
Undistributed net 50,864
investment income
Accumulated undistributed (5,075,943)
net realized gain (loss) on
investments
Net unrealized (183,640)
appreciation (depreciation)
on investments
NET ASSETS, for $ 80,552,294
8,677,238 shares outstanding
NET ASSET VALUE, $9.28
offering price and
redemption price per share
($80,552,294 (divided by)
8,677,238 shares)
STATEMENT OF OPERATIONS
YEAR ENDED JUNE 30, 2000
INVESTMENT INCOME $ 5,309,046
Interest
EXPENSES
Management fee $ 300,927
Non-interested trustees' 5,494
compensation
Total expenses before 306,421
reductions
Expense reductions (389) 306,032
NET INVESTMENT INCOME 5,003,014
REALIZED AND UNREALIZED (1,446,451)
GAIN (LOSS)
Net realized gain (loss)
on investment securities
Change in net unrealized 778,339
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (668,112)
NET INCREASE $ 4,334,902
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED JUNE 30, 2000 YEAR ENDED JUNE 30, 1999
INCREASE (DECREASE) IN
NET ASSETS
Operations Net investment $ 5,003,014 $ 5,624,633
income
Net realized gain (loss) (1,446,451) (661,202)
Change in net unrealized 778,339 (876,705)
appreciation (depreciation)
NET INCREASE 4,334,902 4,086,726
(DECREASE) IN NET ASSETS
RESULTING FROM OPERATIONS
Distributions to (5,010,149) (5,662,895)
shareholders from net
investment income
Share transactions Net 1,816,712 19,918,622
proceeds from sales of shares
Reinvestment of 3,513,868 3,730,602
distributions
Cost of shares redeemed (17,440,265) (4,274,004)
NET INCREASE (12,109,685) 19,375,220
(DECREASE) IN NET ASSETS
RESULTING FROM SHARE
TRANSACTIONS
TOTAL INCREASE (12,784,932) 17,799,051
(DECREASE) IN NET ASSETS
NET ASSETS
Beginning of period 93,337,226 75,538,175
End of period (including $ 80,552,294 $ 93,337,226
under (over) distribution of
net investment income of
$50,864 and $(4,812),
respectively)
OTHER INFORMATION
Shares
Sold 195,561 2,096,305
Issued in reinvestment 377,912 394,533
of distributions
Redeemed (1,877,015) (451,216)
Net increase (decrease) (1,303,542) 2,039,622
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED JUNE 30, 2000 1999 1998 1997 1996
SELECTED PER-SHARE DATA
Net asset value, $ 9.350 $ 9.510 $ 9.650 $ 9.820 $ 9.910
beginning of period
Income from Investment .525 B .615 B .660 B .729 B .601
Operations Net investment
income
Net realized and unrealized (.069) (.157) (.134) (.170) (.093)
gain (loss)
Total from investment .456 .458 .526 .559 .508
operations
Less Distributions
From net investment income (.526) (.618) (.666) (.729) (.598)
Net asset value, end of $ 9.280 $ 9.350 $ 9.510 $ 9.650 $ 9.820
period
TOTAL RETURN A 5.01% 4.94% 5.63% 5.89% 5.25%
RATIOS AND
SUPPLEMENTAL DATA
Net assets, end of period $ 81 $ 93 $ 76 $ 69 $ 64
(in millions)
Ratio of expenses to .35% .35% .36% .37% .38%
average net assets
Ratio of expenses to .35% .35% .35% C .37% .38%
average net assets after
expense reductions
Ratio of net investment 5.64% 6.51% 6.93% 7.48% 6.06%
income to average net assets
Portfolio turnover rate 150% 256% 433% 232% 89%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS 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, 2000
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. Dividends are declared daily and paid monthly from net
investment income. Distributions to shareholders from realized capital
gains on investments, if any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for capital loss carryforwards and losses deferred due to
excise tax regulations.
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 investment may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the 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, Federal Agency,
or other obligations found to be satisfactory by FMR 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 agency obligations aggregated $116,366,065 and
$130,198,721, 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. For the period July 1, 1999 to May 31,
2000, FMR received a fee that was based upon a weighted average series
of rates ranging from .290% to .350% of each fund's average net
assets. Effective June 1, 2000, FMR receives a fee that is based upon
a weighted average series of rates ranging from .215% to .275% of each
fund's average net assets. For the period, the management fees paid to
FMR were equivalent to an annual rate of .31% and .34% for the Cash
and Term Portfolios, respectively.
SUB-ADVISER FEE. As each funds' investment sub-adviser, 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. For the period July 1, 1999 to May 31,
2000, those rates ranged from .14% to .15% of each fund's average net
assets. Effective June 1, 2000, the fee is based upon a graduated
series of rates ranging from .07% to .08% of each fund's average net
assets. For the period, FMR paid FDC $4,101,043 and $127,915 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.
Through an arrangement with each fund's transfer agent, credits
realized as a result of uninvested cash balances were used to reduce a
portion of each fund's expenses. During the period, Cash and Term
Portfolios' expenses were reduced by $7,886 and $389, respectively,
under these arrangements.
6. BENEFICIAL INTEREST.
At the end of the period, one shareholder was record owner of
approximately 17% 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, 2000, and the results of their
operations, the changes in their net assets and the financial
highlights for the periods indicated, in conformity with accounting
principles generally accepted in the United States. These financial
statements and financial highlights (hereafter referred to as
"financial statements") are the responsibility of the 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 auditing standards generally accepted in the United
States 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, 2000 by correspondence
with the custodian, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
August 8, 2000
TRUSTEES
William L. Byrnes
John David "J.D." Foust *
Fred L. Henning, Jr.
James Grubbs Martin *
Helen A. Powers *
OFFICERS
William L. Byrnes, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
J. Calvin Rivers, Jr., VICE PRESIDENT
Dwight D. Churchill., VICE PRESIDENT
Boyce I. Greer, VICE PRESIDENT
Robert K. Duby, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Robert A. Dwight, TREASURER
Maria F. Dwyer, DEPUTY TREASURER
John H. Costello, 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.
TRANSFER AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
