(registered trademark)
DAILY TAX-EXEMPT MONEY
FUND
SEMIANNUAL REPORT
APRIL 30, 1996
DTE-SANN-0696
13408
CONTENTS
SCHEDULES OF INVESTMENTS & FINANCIAL STATEMENTS
INVESTMENTS 3
FINANCIAL STATEMENTS 12
NOTES TO FINANCIAL STATEMENTS 16
FUND GOAL:
THE FUND SEEKS TO OBTAIN AS HIGH A LEVEL OF INTEREST INCOME, EXEMPT FROM
FEDERAL INCOME TAX, AS IS CONSISTENT WITH A PORTFOLIO OF HIGH-QUALITY,
SHORT-TERM MUNICIPAL OBLIGATIONS SELECTED ON THE BASIS OF LIQUIDITY AND
STABILITY OF PRINCIPAL.
INVESTMENTS IN THE FUND ARE NEITHER INSURED NOR GUARANTEED BY THE U.S.
GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE
FUND WILL MAINTAIN A STABLE $1.00 SHARE PRICE.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE
INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION.
SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER
AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR
FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL THE APPROPRIATE NUMBER LISTED BELOW. READ
THE PROSPECTUS CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
RETIREMENT PLAN LEVEL ACCOUNTS
CORPORATE CLIENTS 1-800-962-1375
"NOT FOR PROFIT" CLIENTS 1-800-343-0860
FINANCIAL AND OTHER INSTITUTIONS
NATIONWIDE 1-800-843-3001
INVESTMENTS APRIL 30, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investments
MUNICIPAL SECURITIES (A) - 100%
PRINCIPAL VALUE
AMOUNT (NOTE 1)
ALABAMA - 0.8%
Alabama Hsg. Fin. Auth. Multi-Family Hsg. Rfdg. Rev. Bonds (Rime Village
Proj.) Series 1988 B,
3.20%, tender 5/10/96, LOC Nationsbank $ 3,275,000 $ 3,275,000
Huntsville Ind. Dev. Board Ind. Dev. Rev. (PPG Inds. Inc. Proj.) Series
1992, 4.10%, VRDN 1,000,000 1,000,000
4,275,000
ALASKA - 0.7%
Valdez Marine Terminal Rev. Rfdg.:
Bonds (Atlantic Richfield Co.) Series 1994 C, 3.30%, tender 5/10/96
3,100,000 3,100,000
(Exxon Pipeline Co. Proj.) Series 1985, 4%, VRDN 800,000 800,000
3,900,000
ARIZONA - 3.1%
Apache County Ind. Dev. Auth. Rev.,VRDN:
(Tucson Elec. Pwr. Co. Springerville Proj.):
Series 1983 A, 4.10%, LOC Barclays Bank PLC 4,000,000 4,000,000
Series 1983 B, 4.10%, LOC Bank of New York 4,700,000 4,700,000
Series 1983 C, 4.10%, LOC Bankers Trust Co. 4,100,000 4,100,000
Arizona Health Facs. Auth. Rev. (Samcor 1986 Loan Pool-Samaritan Health
Care) 4.10%
(BPA Chemical Bank) (FGIC Insured), VRDN 1,710,000 1,710,000
Chandler Ind. Dev. Auth. Multi-Family Hsg. Rev. (Southpark Apts.) 4.15%,
LOC Citibank, VRDN 2,000,000 2,000,000
16,510,000
ARKANSAS - 0.5%
Arkansas Hosp. Equip. Fin. Auth. Rev. (Baptist Health Proj.) Series 1995,
4.20%, LOC Credit Suisse, VRDN 1,575,000 1,575,000
University of Arkansas Rev. 4.25%, LOC Credit Suisse, VRDN 1,000,000
1,000,000
2,575,000
CALIFORNIA - 9.3%
Alameda County TRAN 4.75% 7/25/96, LOC Union Bank of Switzerland
4,000,000 4,006,688
Butte County Office of Ed. TRAN 4.75% 9/12/96 1,800,000 1,803,796
California Higher Ed. Loan Auth. Student Loan Rev. Senior Lien Bonds Series
1992 A, 3.90%,
tender 7/1/96, LOC SLMA 2,850,000 2,850,000
California TRAN (Cash Reserve Prog. Auth.) Series 1995 A, 4.75% 7/3/96
10,000,000 10,016,581
Fremont TRAN 4.50% 7/5/96 3,700,000 3,703,156
Fresno County TRAN 4.50% 7/2/96 1,400,000 1,400,957
Fresno Unified School Dist. TRAN 4.50% 10/11/96 4,000,000 4,008,556
Los Angeles Reg. Arpt. Impt. Corp. Lease Rev. (Los Angeles Int'l. Air
France) 4.30%,
LOC Societe Generale, VRDN 3,100,000 3,100,000
Los Angeles County TRAN 4.50% 7/1/96 9,500,000 9,510,667
Oakland TRAN 4.50% 7/31/96 2,000,000 2,002,972
Oakland Unified School Dist. TRAN 4.50% 8/30/96 1,000,000 1,001,303
San Bernardino County TRAN 4.50% 7/5/96 3,500,000 3,503,287
Santa Clara County TRAN 4.50% 8/2/96 2,000,000 2,002,922
48,910,885
COLORADO - 1.3%
Colorado Springs County School Dist. #11 TAN 3.95% 6/28/96 1,200,000
1,200,092
El Paso County Gen. Oblig. Participating VRDN, Series 1996 D, 4.25%,
(Liquidity Facility Norwest Bank NA, Minnesota) (b) 1,250,000 1,250,000
Fort Lupton Water Rev. BAN 4.10% 1/10/97 700,000 700,000
Larimer County Poudre School Dist. #R-1 TAN, Series 1995, 3.55% 6/28/96
3,500,000 3,500,269
6,650,361
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONNECTICUT - 0.9%
Connecticut Special Assessment Unemployment Rev. Bonds Series 1993 C,
3.85%,
tender 7/1/96 (FGIC Insured) (Liquidity Facility FGIC Security Purchase
Inc.) $ 5,000,000 $ 5,000,000
DELAWARE - 1.1%
Delaware Econ. Dev. Auth. Multi-Family Rev. (Schoolhouse Trust Prog.)
4.55%,
LOC Marine Midland Bank, VRDN 1,250,000 1,250,000
Delaware Econ. Dev. Auth. Rev. (Peninsula United Methodist Homes Inc.)
Series 1992 B,
4.15%, LOC Meridian Bank, VRDN 4,840,000 4,840,000
6,090,000
DISTRICT OF COLUMBIA - 0.2%
District of Columbia Hosp. Rev. Bonds (Medlantic Healthcare) Series A,
4.20% 8/15/96
(MBIA Insured) 1,150,000 1,150,543
FLORIDA - 11.1%
Dade County Health Facs. Auth. Hosp. Rev. (Miami Children's Hosp. Proj.)
Series 1990, 4.20%,
LOC Barnett Bank, VRDN 3,900,000 3,900,000
Duval County Multi-Family Hsg. Fin. Auth. Rev. (Lakes of Mayport Apts.)
Series 1985 F, 4.20%,
LOC Suntrust Bank, VRDN 1,300,000 1,300,000
Florida Local Govt. Fin. Commission Series A, 3.30% 5/13/96,
LOC First Union National Bank, CP 2,000,000 2,000,000
Florida State Board of Ed. Participating VRDN, Series CR-163, 4.26%
(Liquidity Facility Citibank) (b) 2,000,000 2,000,000
Indian River County Hosp. Dist. Rev.:
Rfdg. Series 1985, 4.15%, LOC Kredietbank, VRDN 3,000,000 3,000,000
Bonds Series 1990:
3.25%, tender 5/13/96, LOC Kredietbank 3,200,000 3,200,000
3.20%, tender 5/15/96, LOC Kredietbank 3,000,000 3,000,000
Jacksonville River City Renaissance Prog. 3.35% 5/23/96, CP 10,000,000
10,000,000
Lee County Hosp. Board Hosp. Rev. Bonds:
(Lee Memorial Hosp. Proj.):
Series 1985 C, 3.55%, tender 6/14/96 (Liquidity Facility SunTrust Bank)
10,000,000 10,000,000
Series 1992 B, 3.50%, tender 5/20/96 (Liquidity Facility SunTrust Bank)
5,500,000 5,500,000
Orange County Blood Bank Proj. Series 1988, 4.15%, LOC SunTrust Bank, VRDN
1,345,000 1,345,000
St. Lucie County Poll. Cont. Rev. Rfdg. Bonds (Florida Pwr. & Light Co.
Proj.) Series 1994 A,
3.40%, tender 5/14/96 2,000,000 2,000,000
Sarasota County Pub. Hosp. Dist. Hosp. Bonds:
(Sarasota Memorial Hosp.):
Series 1993 A, 3.25%, tender 5/17/96 (Liquidity Facility Goldman Sachs &
Co.) 2,000,000 2,000,000
Series 1993 A, 3.45%, tender 5/21/96 (Liquidity Facility Goldman Sachs &
Co.) 2,500,000 2,500,000
Sunshine State Governmental Fing. Commission Rev.:
Bonds Series 1986, 3.35%, tender 5/21/96 2,000,000 2,000,000
3.25% 5/17/96, CP 3,700,000 3,700,000
3.50% 7/9/96, CP 1,000,000 1,000,000
58,445,000
GEORGIA - 5.1%
Atlanta Gen. Oblig. Participating VRDN, Series SG-58, 4.15%,
(Liquidity Facility Societe Generale) (b) 2,785,000 2,785,000
Cherokee County Wtr. & Swr. Auth. Participating VRDN, Series 1993, 4.10%,
(MBIA Insured) (Liquidity Facility Merrill Lynch & Co.) (b) 4,420,000
4,420,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
GEORGIA - CONTINUED
Clayton County Hsg. Auth. Multi-Family Hsg. Rev. Rfdg. (Kings Arms Apts.
Proj.) Series1990 D,
4.10%, (BPA Barclays Bank) (FSA Insured) VRDN $ 1,100,000 $ 1,100,000
Fulton County Hsg. Auth. Multi-Family Hsg. Rev. Rfdg. (Champions Green
Apts. Proj)
Series 1994 B, 4.25%, LOC Southtrust Bank, VRDN 5,670,000 5,670,000
Georgia Muni. Elec. Auth. Pwr. Rev.:
Bonds Series L, 7.75% 1/1/97 3,300,000 3,460,587
Participating VRDN, Series SG-40, 4.15% (Liquidity Facility Societe
Generale) (b) 3,000,000 3,000,000
Newton County Ind. Dev. Auth. Rfdg. Rev. (John H. Harland Co. Proj.) 4.20%,
LOC NationsBank, Georgia, VRDN 2,000,000 2,000,000
Rockdale County Hosp. Auth. Rev. Series 1994, 4.15%,
LOC SunTrust Bank, VRDN 2,900,000 2,900,000
Savannah Econ. Dev. Auth. Rev. Rfdg. (La Quinta Motor Inns) Series 1991,
4.25%,
LOC NationsBank, VRDN 1,800,000 1,800,000
27,135,587
IDAHO - 0.6%
Idaho Gen. Oblig. TAN Series 1995, 4.50% 6/27/96 3,000,000 3,003,152
ILLINOIS - 5.9%
Chicago Gen. Oblig. Bonds:
Series 1995, 3.75%, tender 5/1/96, LOC Morgan Guaranty Trust Co.
3,000,000 3,000,000
Series 1996, 3.10%, tender 2/4/97, LOC Landesbank Hessen-Thuringen
1,907,000 1,907,000
Chicago Metropolitan Wtr. Recycling Dist. Bonds 6.75% 1/1/97 340,000
347,665
Cook County Rev. (Catholic Charities Hosp.) Series 1988 A-1, 4.10%,
LOC Nat'l. Westminster Bank, VRDN 1,800,000 1,800,000
East Hazel Crest Multi-Family Hsg. Rev. (I-80 & Halstead Proj.) Series 1985
A,
4.55%, LOC Marine Midland Bank, VRDN 2,945,000 2,945,000
Illinois Dev. Fin. Auth. Poll. Cont. Rev. Rfdg. (UNO-VEN Proj.) Series
1994, 4.10%,
LOC NBD Bank, VRDN 2,000,000 2,000,000
Illinois Edl. Facs. Auth. Rev. (Art Institute of Chicago) Series 1996,
4.15%
(Liquidity Facility Bank of America), VRDN 2,000,000 2,000,000
Illinois Health Facs. Auth. Rev.:
Bonds (Evanston Hosp. Corp. Proj.) Series 1985-B, 3.15%, tender 1/31/97
1,900,000 1,900,000
(Children's Mem. Hosp.) Series 1985 B, 4.10%, LOC First Nat'l Bank of
Chicago, VRDN 3,600,000 3,600,000
Kane, McHenry, Cook & Dekalb Counties Commty. Unit School Dist.
#300 TAN 4.25% 9/27/96 1,000,000 1,001,984
Lombard Ind. Dev. Rev. Rfdg. Proj. (B&H Partnership Proj.) 4.475%,
LOC Comerica Bank, VRDN 3,375,000 3,375,000
Mundelein Ind. Dev. Rev. Rfdg. (1200 Town Line Rd. Proj.) 4.10%,
LOC Harris Trust & Savings Bank, VRDN 1,100,000 1,100,000
Schaumberg Ind. Dev. Rev. Rfdg. (La Quinta Motor Inns Inc. Proj.) 4.25%,
LOC NationsBank, VRDN 1,985,000 1,985,000
Schaumberg Village Gen. Oblig. Series 1996 A, 4.10% (BPA Credit Suisse)
VRDN 1,900,000 1,900,000
Springfield Commty. Impt. Rev. (Kent Family, Inc. Proj.) 4.15%,
LOC PNC Bank, VRDN 1,600,000 1,600,000
Winnebago & Boone County's School Dist. #205 TAN Series 1996, 4.35%
10/30/96
(FSA Insured) 700,000 704,105
31,165,754
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
INDIANA - 4.5%
Indiana Bond Bank:
Rev. Bonds 4.10% 2/1/97 (AMBAC Insured) $ 1,175,000 $ 1,184,082
TAN 4.25% 7/8/96 1,200,000 1,201,994
Indiana Ed. Facs. Auth. Rev. (Tri-State Univ., Inc. Proj.) 4.25%, LOC Bank
One,
Indianapolis, VRDN 2,585,000 2,585,000
Indiana Health Facs. Fin. Auth. Hosp. Rev. (Methodist Hosp. Of Indiana)
Series 1992 B, 4.20%,
LOC Credit Suisse, VRDN 3,000,000 3,000,000
Indiana Hsg. Fin. Auth. Single-Family Mtg. Rev. Bonds Series D-1, 3.85%,
tender 11/1/96 1,500,000 1,500,000
Indianapolis Econ. Dev. Rev. Rfdg. (Rand McNally & Co. Proj.) Series 1989,
4.10%,
LOC First Union Nat'l. Bank of North Carolina, VRDN 4,000,000 4,000,000
Jasper County Poll. Cont. Rev. Bonds (Northern Indiana Pub. Svc. Proj.)
Series 1988 C, 3.25%,
tender 5/20/96, LOC Barclays Bank 2,000,000 2,000,000
Noblesville Econ. Dev. Rev. Rfdg. (River's Edge Apt. Proj.) Series 1992,
4.25%,
LOC Bank One, VRDN 3,160,000 3,160,000
Sullivan Poll. Cont. Rev. Bonds:
(Hoosier Energy Rural Elec. Coop.):
Series 1985 L-3, 3.35%, tender 5/17/96 (Nat'l. Rural Util. Coop. - CFC
Guaranteed) 1,200,000 1,200,000
Series 1985 L-5, 3.35%, tender 5/17/96 (Nat'l. Rural Util. Coop. - CFC
Guaranteed) 1,550,000 1,550,000
Series 1985 L-5, 3.45%, tender 6/14/96 (Nat'l. Rural Util. Coop. - CFC
Guaranteed) 2,200,000 2,200,000
23,581,076
IOWA - 0.4%
Iowa Hsg. Fin. Auth. Multi-Family Hsg. Rev. (Small Bus. Loan Prog.) Series
1985 A, 4.05%,
LOC Federal Home Loan Bank, VRDN 1,100,000 1,100,000
Iowa School TRAN Series 1996 B, 4.25% 1/30/97 (FSA Insured) 1,000,000
1,006,165
2,106,165
KANSAS - 2.0%
Burlington Poll. Cont. Rev. Bonds:
(Kansas City Pwr. & Light Co.) Series 1985 B, 3.25%, tender 5/9/96,
LOC Societe Generale 2,000,000 2,000,000
(Kansas Elec. Pwr. Coop. Inc.) Series 1985 C-1, 3.25%, tender 5/17/96
(Nat'l Rural Util. Coop. - CFC Guaranteed) 5,065,000 5,065,000
Olathe Edl. Facs. Rev. (College Assoc. Pooled Ed. Loan Prog.) Series 1989
A, 4.15%,
LOC Marine Midland Bank, VRDN 2,290,000 2,290,000
Wamego Poll Cont. Rev. Rfdg. (Utilicorp United Inc. Proj.) Series 1996,
4.10%,
LOC Credit Suisse, VRDN 1,000,000 1,000,000
10,355,000
KENTUCKY - 0.3%
Georgetown Ed. Inst. Rev. (Georgetown College Proj.) Series 1992, 4.15%,
LOC PNC Bank, VRDN 1,800,000 1,800,000
LOUISIANA - 0.4%
Louisiana Pub. Facs. Auth. Wtr. Rev. Rfdg. (Louisiana Wtr. Co. Proj.)
Series 1993, 4.10%,
LOC Bank One Texas, VRDN 2,185,000 2,185,000
MARYLAND - 0.9%
Baltimore RAN 4.25% 6/10/96 3,200,000 3,201,641
Baltimore Participating VRDN, Series SGA-20, 4.20%
(Liquidity Facility Societe Generale) (b) 1,500,000 1,500,000
4,701,641
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
MASSACHUSETTS - 0.6%
Massachusetts Gen. Oblig. Participating VRDN, Series SG-47, 4.15%
(Liquidity Facility Societe Generale) (b) $ 1,000,000 $ 1,000,000
Massachusetts Health. & Ed. Facs. Auth. Rev. (Cap. Asset Prog.) Series E,
4.10%,
LOC First Nat'l Bank of Chicago, VRDN 1,900,000 1,900,000
2,900,000
MICHIGAN - 5.2%
Michigan Gen. Oblig. TAN 4% 9/30/96 3,500,000 3,511,431
Michigan Hosp. Fin. Auth. Rev., VRDN:
Rfdg. (Mt. Clemens Gen. Hosp.) Series 1994, 4.15%, LOC Comerica Bank -
Detroit 5,500,000 5,500,000
(Hosp. Equipment Loan Prog.) Series 1995 A, 4.15%, LOC First of America
Bank 2,000,000 2,000,000
Michigan Muni Bond Auth. RAN Series 1995 B, 4.50% 7/3/96 10,000,000
10,011,602
Michigan Strategic Fund Ind. Dev. Rev. (Michigan Sugar Co.-Croswell Proj.)
4.15%,
LOC SunTrust Bank, VRDN 2,500,000 2,500,000
Michigan Strategic Fund Ltd. Oblig. Rev. (Michigan Sugar Co.-Caro Proj.)
Series 1991, 4.15%,
LOC SunTrust Bank, VRDN 1,500,000 1,500,000
Michigan Strategic Fund Rev. Bonds (Dow Chemical Proj.) Series 1986, 3.55%,
tender 6/12/96 2,200,000 2,200,000
27,223,033
MINNESOTA - 1.2%
Minnesota Hsg. Fin. Agcy. Single Family Mtg. Rev. Bonds Series M, 3.50%,
tender 12/12/96 1,000,000 1,000,000
Olmsted County (COP Human Services Campus Infrastructure Proj.) 4.15%,
LOC Toronto Dominion Bank, VRDN 2,535,000 2,535,000
Osseo Independent School Dist. # 279 Participating VRDN: (b)
Series A, 4.25%, (FGIC Insured) (Liquidity Facility Norwest Bank)
1,260,000 1,260,000
Series 94-T1, 4.25% (Liquidity Facility First Bank, Minnesota)
1,000,000 1,000,000
University of Minnesota Bonds Series G, 3.25%, tender 8/1/96 600,000
600,000
6,395,000
MISSOURI - 0.5%
Missouri Health & Ed. Facs. Auth. Rev. (Sisters of Mercy Health Sys.)
Series 1995 A, 3.60% 12/1/96 750,000 750,000
St Louis Planned Expansion Auth. Ind. Dev. Rfdg. Rev. (Alumax Foils Proj.)
Series 1992, 4.10%,
LOC PNC Bank, VRDN 2,000,000 2,000,000
2,750,000
MONTANA - 0.6%
Montana Gen. Oblig. TRAN 4.50% 6/30/96 3,200,000 3,203,816
NEBRASKA - 0.8%
Lancaster County Hosp. Auth. Rev. (St. Elizabeth Commty. Health Ctr. &
Sisters of Charity
Health Care) Series 1, 4.15% (MBIA Insured) VRDN 100,000 100,000
Omaha Pub. Pwr. Dist. Elec. Rev.:
Bonds Series B, 4.10% 2/1/97 1,000,000 1,006,387
Participating VRDN, Series 1993 D, 4.10% (Liquidity Facility Merrill Lynch
& Co. Inc.) (b) 3,070,000 3,070,000
4,176,387
NEW JERSEY - 1.5%
East Brunswick BAN 4% 1/3/97 1,500,000 1,504,495
Hudson County BAN 4.375% 10/10/96 2,600,000 2,603,691
New Jersey Gen. Oblig. Participating VRDN, Series 943005, 4.21%
(Liquidity Facility Citibank) (b) 2,000,000 2,000,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
NEW JERSEY - CONTINUED
Pleasantville Board of Ed. BAN 3.50% 8/29/96 $ 1,000,000 $ 1,000,389
Washington Township BAN 4% 12/13/96 1,000,000 1,002,673
8,111,248
NEW YORK - 2.9%
New York City Gen. Oblig. RAN Series 1996 B, 4.75% 6/28/96 9,550,000
9,562,107
New York City Hsg. Dev. Corp. Residential Rev. (East 17th Street Property)
Series 1993 A, 4%,
LOC Chemical Bank, VRDN 300,000 300,000
New York City Muni. Wtr. Fin. Auth. Wtr. & Swr. Rev. Series 1994 C, 4%
(FGIC Insured) VRDN 2,900,000 2,900,000
New York Metro. Transit Auth. Commuter Facs. Rev. Bonds 8.50% 7/1/96
1,200,000 1,233,475
New York Metro Trans. Auth. Participating VRDN, Series PW-14, 4.25%
(Liquidity Facility Canadian Imperial Bank) (b) 1,300,000 1,300,000
15,295,582
NORTH CAROLINA - 0.3%
Mecklenburg County Gen. Oblig. Rev. Series 1996 C, 4.10%
(Liquidity Facility NationsBank) VRDN 1,400,000 1,400,000
OHIO - 0.2%
Ohio State Air Quality Dev. Auth. Rev. (Cincinnati Gas & Elec.) Series B,
4%,
LOC Canadian Imperial Bank, VRDN 1,000,000 1,000,000
OKLAHOMA - 0.2%
Tulsa Ind. Auth. Rev. Rfdg. (University of Tulsa) Series 1996 B, 4.10%
(MBIA Insured) VRDN 1,200,000 1,200,000
PENNSYLVANIA - 3.1%
Allegheny County Hosp. Dev. Auth. Rev. (St. Margaret Mem. Hosp.) Series
1992 A, 4.30%,
LOC Mellon Bank, VRDN 2,590,000 2,590,000
Dauphin County Gen. Auth. Hosp. Rev. (Reading Hosp. & Med. Ctr.) Series
1994 A,
4.15%, VRDN 1,200,000 1,200,000
Delaware Valley Reg'l. Fin. Auth. Local Gov't. Rev., VRDN:
Series 1985 B, 4.25%, LOC Midland Bank 2,000,000 2,000,000
Series 1985 C, 4.25%, LOC Midland Bank 2,500,000 2,500,000
Series 1986, 4.25%, LOC Hong Kong & Shanghai Banking Corp. 1,700,000
1,700,000
Montgomery County Higher Ed. & Health. (Pottstown Healthcare Corp. Proj.)
Series 1992, 4.025%, LOC Meridian Bank, VRDN 2,565,000 2,565,000
North Lebanon Township Rev. (Grace Commty. Inc. Proj.) Series 1992 B,
4.025%,
LOC Meridian Bank, VRDN 1,895,000 1,895,000
Schuylkill County Ind. Dev. Auth. Resource Recovery Rev. (Gilberton Pwr.)
4.25%,
LOC Mellon Bank, VRDN 2,000,000 2,000,000
16,450,000
SOUTH CAROLINA - 5.3%
South Carolina Hsg. Fin. & Dev. Auth. Multi-Family Hsg. Rev. (Spartanburg
Oxford Proj.)
Series 1990 D, 4.45%, (Continental Casualty Co. Guaranteed) VRDN
9,415,000 9,415,000
South Carolina Jobs Econ. Dev. Auth. (St. Francis Hosp.) 4.20%, LOC
Chemical Bank, VRDN 14,300,000 14,300,000
South Carolina Pub. Svc. Auth. Participating VRDN, Series CR-183, 4.21%,
(Liquidity Facility Citibank) (b) 1,100,000 1,100,000
Walhalla Rev. Rfdg. (Avondale Mills Inc. Proj.) Series 1990, 4.15%,
LOC SunTrust Bank, VRDN 3,000,000 3,000,000
27,815,000
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
TENNESSEE - 2.0%
Clarksville Pub. Bldg. Auth. Pooled Fing. Rev. Series 1995, 4.20%, LOC
NationsBank, VRDN $ 2,000,000 $ 2,000,000
Metropolitan Govt. of Nashville & Davidson County Pooled Loan Ed. Program
Rev.
Series A, 4.20%, LOC NationsBank, VRDN 4,100,000 4,100,000
Nashville Metropolitan Arpt. Auth. Spl. Facs. Rev. (American Airlines
Proj.) Series A, 4.05%,
LOC Credit Suisse, VRDN 1,600,000 1,600,000
Rutherford County (Cumberland-Swan Inc. Proj.) Series 1987, 4.15%,
LOC SunTrust Bank, VRDN 1,075,000 1,075,000
Tennessee Local Dev. Auth. BAN 4.75% 5/31/96 1,500,000 1,501,064
10,276,064
TEXAS - 10.8%
Austin Hsg. Fin. Corp. Multi-Family Hsg. Rev. (Riverchase Proj.) Series
1985 A, 4.15%,
LOC Household Fin. Corp., VRDN 1,000,000 1,000,000
Brazos River Harbor Navigation Dist. Of Brazoria County Rev. Bonds (Dow
Chemical Co.)
Series 1991, 3.65%, tender 7/9/96 2,750,000 2,750,000
El Paso Ind. Dev. Auth. Rev. Rfdg. (La Quinta Motor Inns Inc. Proj.)
Series 1991, 4.25%, LOC NationsBank, VRDN 1,415,000 1,415,000
Guadalupe-Blanco River Auth. Ind. Dev. Rev. (BOC Group Inc. Proj.) Series
1993, 4.15%,
LOC Wachovia Bank, VRDN 1,500,000 1,500,000
Gulf Coast Waste Disp. Auth. Poll. Cont. Rev. (Amoco Oil Co. Proj.) 4%,
VRDN 1,400,000 1,400,000
Harris County Dev. Corp. Rev. Series 1996 A, 4%, LOC Texas Commerce Bank,
VRDN 1,000,000 1,000,000
Harris County Health Facs. Dev. Corp. Hosp. Rev. (St. Luke's Episcopal
Hosp.)
Series 1985 C, 4.10%, (BPA Morgan Guaranty Trust Co.) VRDN 3,100,000
3,100,000
Houston Wtr. & Swr. Sys. Rev.:
Bonds 8.20% 12/1/96 1,000,000 1,046,413
Series A, 3.30% 5/23/96 (Liquidity Facility Swiss Bank Corp./
Westdeutsche Landesbank), CP 2,000,000 2,000,000
Series A, 3.40% 5/30/96 (Liquidity Facility Westdeutsche Landesbank/Swiss
Bank Corp.) CP 1,000,000 1,000,000
Series A, 3.70% 8/20/96 (Liquidity Facility Westdeutsche Landesbank/Swiss
Bank Corp.) CP 1,000,000 1,000,000
La Marque ISD Variable Rate TRAN 4.258% 8/31/96 (c) 1,700,000 1,700,000
Pantego Ind. Dev. Corp. (Minyard Properties) Series 1984, 4%, LOC Citibank,
VRDN 2,000,000 2,000,000
Sabine River Ind. Dev. Auth. Rev. Poll. Cont.. Bonds 4.5%, tender 8/15/96
(BPA Nat'l Rural Utl. Coop. Fin.) 1,000,000 1,000,000
San Antonio Wtr. Sys. Series 1992, 3.20% 5/14/96 (Liquidity Facility Credit
Suisse) CP 4,000,000 4,000,000
Texarkana Ind. Dev. Corp. Rev. Rfdg. (La Quinta Motor Inns Inc. Proj.)
4.25%,
LOC NationsBank, VRDN 2,440,000 2,440,000
Texas Gen. Oblig. TRAN Series 1995 A, 4.75% 8/30/96 14,060,000
14,099,389
Texas Muni. Pwr. Agcy. Rev., CP:
3.25% 5/20/96 5,500,000 5,500,000
3.50% 6/12/96 2,000,000 2,000,000
3.20% 8/9/96 5,000,000 5,000,000
Texas Pub. Ed. Fin. Auth. Participating VRDN, Series CR-170, 4.21%
(Liquidity Facility Citibank) (b) 2,000,000 2,000,000
56,950,802
UTAH - 1.6%
Intermountain Pwr. Agency Pwr. Supply Rev. Bonds:
Rfdg. Series A, 3.90% 7/1/96 1,000,000 1,000,975
Series 1985 E, 3.85%, tender 6/17/96 (BPA Bank of America Nat'l. Trust &
Savings) 2,200,000 2,200,000
Series 1985 F, 3.25%, tender 5/22/96 (BPA Bank of America Nat'l. Trust &
Savings) 4,500,000 4,500,000
Utah County Environmental Impt. Rev. Bonds (USX Corp.)
Series 1995, 3.70%, tender 5/1/96, LOC Wachovia Bank 900,000 900,000
8,600,975
MUNICIPAL SECURITIES (A) - CONTINUED
PRINCIPAL VALUE
AMOUNT (NOTE 1)
VERMONT - 0.3%
Vermont Student Assistance Corp. Student Loan Rev. Series 1985, 3.50%,
LOC Nat'l. Westminster Bank, VRDN $ 1,600,000 $ 1,600,000
VIRGINIA - 5.5%
Fairfax County Gen. Oblig. Rev. Bonds Series 1986 A, 7% 8/1/96 900,000
920,613
Louisa County Ind. Dev. Auth. Adj. Rate Pooled Fin. Rev. Series 1995,
4.20%,
LOC NationsBank, VRDN 3,000,000 3,000,000
Louisa Ind. Dev. Auth. Poll. Cont. Rev. Bonds:
(Virginia Elec. & Pwr. Co.) Series 1985:
3.35%, tender 5/16/96 (BPA Bank of New York) 10,000,000 10,000,000
3.20%, tender 6/11/96 (BPA Bank of New York) 5,125,000 5,125,000
Suffolk Redev. & Hsg. Auth. Multi-Family Rental Hsg. Rev. (Windsor at
Fieldstone Proj.) 4.20%,
LOC NationsBank, VRDN 7,492,000 7,492,000
Virginia Beach Dev. Auth. Rev. Rfdg. (La Quinta Inns) Series 1993, 4.25%,
LOC NationsBank, VRDN 2,675,000 2,675,000
29,212,613
WASHINGTON - 4.6%
King County Gen. Oblig. Rfdg. Bonds Series 1996 A, 5% 1/1/97 1,000,000
1,010,769
Washington Gen. Oblig. Participating VRDN, Series 1993C-A, 4.26%
(Liquidity Facility Citibank) (b) 4,000,000 4,000,0000
Washington Pub. Pwr. Supply Participating VRDN: (b)
Series 94 B, 4.26% (Liquidity Facility Citibank) 10,600,000 10,600,000
(Nuclear Proj. No.3) Series BT-126, 4.35%,
(BPA Bankers Trust Co.) (b) 2,774,400 2,774,400
Washington Pub. Pwr. Supply Sys. Rev. Rfdg.:
(Nuclear Proj. #1) Series 1993-1A1, 4.10%,
LOC Bank of America Nat'l. Trust & Savings, VRDN 4,600,000 4,600,000
Bonds (Nuclear Proj. #2) 4.10% 7/1/96 1,000,000 1,001,068
23,986,237
WISCONSIN - 2.5%
Glendale-River Hills School Dist. TRAN 4.50% 8/20/96 2,400,000 2,402,799
Kenosha Unified School Dist. TRAN 4.50% 9/6/96 1,600,000 1,602,434
Milwaukee Redev. Auth. Dev. Rev. (Bradley Ctr. Parking Facs. Proj.) Series
1986, 4%,
LOC Nat'l. Westminster Bank, VRDN 25,000 25,000
New Berlin School Dist. TRAN 4.25% 8/22/96 1,000,000 1,000,955
Wisconsin Health & Ed. Facs. Auth. (Daughters of Charity - St. Mary's)
Series 1992 A, 4.20%, VRDN 4,000,000 4,000,000
Wisconsin Health & Ed. Facs. Auth Health Facs Rev. (SSM Healthcare Proj.)
Series 1990A, 4%,
LOC Credit Suisse, VRDN 1,400,000 1,400,000
Wisconsin Participating VRDN, Series 1993 R, 4.26%, (Liquidity Facility
Citibank) (b) 3,000,000 3,000,000
13,431,188
MULTIPLE STATES - 1.2%
California Student Loan Mktg. Corp. Student Loan Rev. Rfdg. Series 1993 A,
4.20%,
LOC Dresdner Bank, VRDN 5,000,000 5,000,000
Participating VRDN, Series 1990 A, 4.125%, LOC NationsBank (b) 1,235,000
1,235,000
6,235,000
TOTAL INVESTMENTS - 100% $ 527,753,109
Total Cost for Income Tax Purposes $ 527,753,154
SECURITY TYPE ABBREVIATIONS
BAN - Bond Anticipation Notes
CP - Commercial Paper
RAN - Revenue Anticipation Notes
TAN - Tax Anticipation Notes
TRAN - Tax and Revenue Anticipation Notes
VRDN - Variable Rate Demand Notes
LEGEND
(1.) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(2.) Provides evidence of ownership in one or more underlying municipal
bonds.
(3.) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION
ACQUISITION COST
SECURITY DATE (000S)
La Marque ISD
Variable Rate TRAN 9/7/95 $ 1,700,000
INCOME TAX INFORMATION
At October 31, 1995, the fund had a capital loss carryforward of
approximately $24,000 which will expire on October 31, 2000.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
APRIL 30, 1996 (UNAUDITED)
4.ASSETS 5. 6.
7.Investment in securities, at value - See accompanying schedule 8. $ 527,753,109
9.Cash 10. 808,148
11.Interest receivable 12. 5,791,596
13. 14.TOTAL ASSETS 15. 534,352,853
16.LIABILITIES 17. 18.
19.Payable for investments purchased $ 2,185,000 20.
21.Distributions payable 144,285 22.
23.Accrued management fee 189,081 24.
25.Other payables and accrued expenses 138,421 26.
27. 28.TOTAL LIABILITIES 29. 2,656,787
30.31.NET ASSETS 32. $ 531,696,066
33.Net Assets consist of: 34. 35.
36.Paid in capital 37. $ 531,761,189
38.Accumulated net realized gain (loss) on investments 39. (65,123)
40.41.NET ASSETS, for 531,761,189 shares outstanding 42. $ 531,696,066
43.44.NET ASSET VALUE, offering price and redemption price per share 45. $1.00
($531,696,066 (divided by) 531,761,189 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
46.47.INTEREST INCOME 48. $ 10,137,452
49.EXPENSES 50. 51.
52.Management fee $ 1,381,989 53.
54.Transfer agent, accounting and custodian fees and expenses 576,643 55.
56.Non-interested trustees' compensation 1,828 57.
58.Registration fees 174,520 59.
60.Audit 7,713 61.
62.Legal 3,182 63.
64.Miscellaneous 1,285 65.
66. Total expenses before reductions 2,147,160 67.
68. Expense reductions (353,079) 1,794,081
69.70.NET INTEREST INCOME 71. 8,343,371
72.73.NET REALIZED GAIN (LOSS) ON INVESTMENTS 74. (41,799)
75.76.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 77. $ 8,301,572
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED APRIL OCTOBER 31,
30,1996
(UNAUDITED) 1995
78.INCREASE (DECREASE) IN NET ASSETS
79.Operations $ 8,343,371 $ 16,108,406
Net interest income
80. Net realized gain (loss) (41,799) 32,560
81. Increase (decrease) in net unrealized gain from accretion of market discount - (317)
82. 83.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 8,301,572 16,140,649
84.Distributions to shareholders from net interest income (8,343,371) (16,108,406)
85.Share transactions at net asset value of $1.00 per share 1,017,700,686 1,737,542,023
Proceeds from sales of shares
86. Reinvestment of distributions from net interest income 7,223,683 14,101,845
87. Cost of shares redeemed (1,052,359,694) (1,646,761,931)
88.89. (27,435,325) 104,881,937
NET INCREASE (DECREASE) IN NET ASSETS AND SHARES RESULTING FROM SHARE TRANSACTIONS
90. 91.TOTAL INCREASE (DECREASE) IN NET ASSETS (27,477,124) 104,914,180
92.NET ASSETS 93. 94.
95. Beginning of period 559,173,190 454,259,010
96. End of period $ 531,696,066 $ 559,173,190
</TABLE>
FINANCIAL HIGHLIGHTS
97. SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30, 1996
98. (UNAUDITED) 1995 1994 1993 1992 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
99.SELECTED PER-SHARE DATA
100.Net asset value, beginning of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
101.Income from Investment Operations .015 .033 .022 .021 .029 .044
Net interest income
102.Less Distributions (.015) (.033) (.022) (.021) (.029) (.044)
From net interest income
103.Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
104.TOTAL RETURN B 1.51% 3.36% 2.21% 2.11% 2.93% 4.46%
105.RATIOS AND SUPPLEMENTAL DATA
106.Net assets, end of period (000 $ 531,696 $ 559,173 $ 454,259 $ 538,756 $ 484,999 $ 304,147
omitted)
107.Ratio of expenses to average net .65% A, .65% .65% .61% .63% .65%
assets C C C
108.Ratio of net interest income to 3.02% A 3.31% 2.17% 2.09% 2.86% 4.29%
average
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING
THE PERIODS SHOWN.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER (SEE NOTE 4 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Daily Tax-Exempt Money Fund (the fund) is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Delaware business trust and is
authorized to issue an unlimited number of shares. The financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. 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.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned. Accretion
of market discount represents unrealized gain until realized at the time of
a security disposition or maturity.
DISTRIBUTIONS TO SHAREHOLDERS. Dividends are declared daily and paid
monthly from net interest income.
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.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $1,700,000 or .3%
of net assets.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) receives a fee that is computed daily at an annual
rate of .50% of the fund's average net assets.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $735,977 for the
period.
3. FEES AND OTHER TRANSACTIONS WITH
AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES. UMB Bank, n.a. (UMB) is the custodian
and transfer and shareholder servicing agent for the fund. UMB has entered
into a sub-contract with Fidelity Investments Institutional Operations
Company (FIIOC), an affiliate of FMR, under which FIIOC performs the
activities associated with the fund's transfer and shareholder servicing
agent functions. The fund pays account fees and asset-based fees that vary
according to account size and type of account. FIIOC pays for typesetting,
printing and mailing of all shareholder reports, except proxy statements.
For the period, FIIOC received transfer and shareholder servicing agent
fees amounting to $504,974.
For the period, the transfer agent fees were equivalent to an annualized
rate of .18% of average net assets.
UMB also has a sub-contract with Fidelity Service Co. (FSC), an affiliate
of FMR, under which FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses. For the period, FSC received accounting fees amounting to
$53,143.
4. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .65% of average net assets. For the
period, the reimbursement reduced the expenses by $353,079.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Fred L. Henning, Jr., VICE PRESIDENT
Arthur S. Loring, SECRETARY
Kenneth A. Rathgeber, TREASURER
Thomas D. Maher, ASSISTANT VICE PRESIDENT
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
CUSTODIAN
UMB Bank, n.a.
Kansas City, MO
TRANSFER AND
SHAREHOLDER
SERVICING AGENTS
UMB Bank, n.a.
Kansas City, MO
and
Fidelity Investments Institutional
Operations Company
Boston, MA
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
