SUPPLEMENT TO THE TREASURY FUND, PRIME FUND AND TAX-EXEMPT FUND -
DAILY MONEY CLASS MAY 30, 1997 PROSPECTUS
The name of the Trust has been amended. The new name is Newbury Street
Trust.
The following information replaces the similar information found in
"Contents" on page 2:
EXPENSES Daily Money Class's yearly operating expenses.
The following information replaces similar information in "Who May
Want to Invest" on page 3:
Each fund is composed of multiple classes of shares. All classes of
a fund have a common investment objective and investment portfolio.
Each fund offers Daily Money Class shares and Capital Reserves Class
shares. Treasury Fund also offers Advisor B Class (Class B) shares and
Advisor C Class (Class C) shares. Daily Money Class and Capital
Reserves Class shares do not have a sales charge, but do pay a 12b-1
fee. Class B and Class C shares do not have a front-end sales charge,
but do have a contingent deferred sales charge (CDSC), and pay a 12b-1
fee. Class B and Class C shares may be purchased directly only in
connection with the Fidelity Advisor Systematic Exchange Program (the
Program) for purposes of exchanging into Class B or Class C shares, as
applicable, of the Fidelity Advisor funds. You may obtain more
information about Capital Reserves Class shares, Class B shares and
Class C shares, which are not offered through this prospectus, from
your investment professional or by calling Fidelity Client Services at
1-800-843-3001.
The performance of one class of shares of a fund may be different
from the performance of another class of shares of the same fund
because of different sales charges and class expenses. Contact your
investment professional to discuss which class is appropriate for
you.
In determining which class of shares is appropriate for you, you
should consider, among other factors, the amount you plan to invest,
the length of time you intend to hold your shares, and the package of
services provided to you by your investment professional and the
overall costs of those services.
In general, Daily Money Class shares have lower costs than Capital
Reserves Class, Class B and Class C shares because Daily Money Class
shares do not have a sales charge and have lower 12b-1 fees. Class B
shares have higher costs than Class C shares over a short holding
period because Class B shares have a higher CDSC that declines over
six years, and Class B shares have lower costs than Class C shares
over a longer period because Class B shares convert to Daily Money
Class shares after seven years. If you sell your Class B shares within
six years, you will normally pay a CDSC that varies depending on how
long you have held your shares. If you sell your Class C shares within
one year, you will normally pay a 1.00% CDSC. Class C shares do not
convert to another class of shares. Please note that purchase amounts
of more than $250,000 will not be accepted for Class B shares and
purchase amounts of more than $1,000,000 will not be accepted for
Class C shares.
The following information supplements the information found in
"Management Fee" on page 12:
FMR paid FMR Texas fees equal to 0.11% of Treasury Fund's and 0.14%
of Prime Fund's average net assets for the fiscal year ended July 31,
1996, but after payments made by FMR pursuant to the funds'
Distribution and Service Plans in effect prior to May 31, 1997.
The following information supplements the information found in
"Other Expenses" on page 13:
For the fiscal year ended July 31, 1996, fees paid by Daily Money
Class shares of Treasury Fund and Prime Fund to FIIOC amounted to
0.17% and 0.24%, respectively, of its average net assets and fees paid
by each Taxable Fund to FSC amounted to 0.01% of its average net
assets.
The following information replaces the similar information found in
"Taxes" on page 19:
For federal tax purposes, income and short-term capital gains from
each Taxable Fund are distributed as dividends and taxed as ordinary
income; capital gain distributions, if any, are taxed as long-term
capital gains.
However, for shareholders of Tax-Exempt Fund, gain on the sale of
tax-free bonds results in taxable distributions. Short-term capital
gains and a portion of the gain on bonds purchased at discount are
distributed as dividends and taxed as ordinary income; capital gain
distributions, if any, are taxed as long-term capital gains.
Every January, Fidelity will send you and the IRS a statement
showing the tax characterization of distributions paid to you in the
previous year.
The following information supplements the information found in
"Taxes" on page 19:
For the fiscal year ended July 31, 1996, 21.0% of Treasury Fund's
and 6.9% of Prime Fund's income distributions were derived from
interest on U.S. Government securities which is generally exempt from
state income tax.
The following information replaces the similar information found in
"Other Expenses" on page 13.
Daily Money Class of each fund has adopted a DISTRIBUTION AND
SERVICE PLAN. Under the Plans, Daily Money Class of each fund is
authorized to pay FDC a monthly distribution fee as compensation for
its services and expenses in connection with the distribution of Daily
Money Class shares. Daily Money Class of each fund currently pays FDC
a monthly distribution fee at an annual rate of 0.25% of its average
net assets throughout the month. FDC may compensate intermediaries
that provide shareholder support services, engage in the sale of Daily
Money Class's shares or pay distribution expenses at an annual rate of
up to 0.25% of average net assets they maintain.
The Daily Money Class Plans specifically recognize that FMR may make
payments from its management fee revenue, past profits, or other
resources to FDC for expenses incurred in connection with the
distribution of Daily Money Class shares, including payments made to
intermediaries that provide shareholder support services or engage in
the sale of Daily Money Class shares. The Board of Trustees of each
fund has authorized such payments to intermediaries at an annual rate
of up to 0.10% of the average net assets they maintain.
Independent of the Daily Money Class Plans, intermediaries that
maintain an average balance of $10 million or more in a single omnibus
account may receive an additional recordkeeping fee of up to 0.15% of
the average net assets they maintain. The recordkeeping fee will be
paid by FMR or its affiliates, not by the fund, and will not be paid
for distribution services.
Each fund also pays other expenses, such as legal, audit, and
custodian fees; in some instances, proxy solicitation costs; and the
compensation of trustees who are not affiliated with Fidelity.
SUPPLEMENT TO THE TREASURY FUND - ADVISOR B CLASS MAY 30, 1997
PROSPECTUS
The name of the Trust has been amended. The new name is Newbury Street
Trust.
The fund is composed of multiple classes of shares. All classes of
the fund have a common investment objective and investment portfolio.
The fund offers Daily Money Class shares, Capital Reserves Class
shares, Advisor B Class (Class B) shares, and Advisor C Class (Class
C) shares. Daily Money Class and Capital Reserves Class shares do not
have a sales charge, but do pay a 12b-1 fee. Class B and Class C
shares do not have a front-end sales charge, but do have a contingent
deferred sales charge (CDSC), and pay a 12b-1 fee. Class B and Class C
shares may be purchased directly only in connection with the Fidelity
Advisor Systematic Exchange Program (the Program) for purposes of
exchanging into Class B or Class C shares, as applicable, of the
Fidelity Advisor funds. You may obtain more information about Daily
Money Class shares, Capital Reserves Class shares and Class C shares,
which are not offered through this prospectus, from your investment
professional or by calling Fidelity Client Services at
1-800-843-3001.
The performance of one class of shares of a fund may be different
from the performance of another class of shares of the same fund
because of different sales charges and class expenses. Contact your
investment professional to discuss which class is appropriate for
you.
In determining which class of shares is appropriate for you, you
should consider, among other factors, the amount you plan to invest,
the length of time you intend to hold your shares, and the package of
services provided to you by your investment professional and the
overall costs of those services.
In general, Daily Money Class shares have lower costs than Capital
Reserves Class, Class B and Class C shares because Daily Money Class
shares do not have a sales charge and have lower 12b-1 fees. Class B
shares have higher costs than Class C shares over a short holding
period because Class B shares have a higher CDSC that declines over
six years, and Class B shares have lower costs than Class C shares
over a longer period because Class B shares convert to Daily Money
Class shares after seven years. If you sell your Class B shares within
six years, you will normally pay a CDSC that varies depending on how
long you have held your shares. If you sell your Class C shares within
one year, you will normally pay a 1.00% CDSC. Class C shares do not
convert to another class of shares. See "Transaction Details," page
15, for CDSC and conversion information. Please note that purchase
amounts of more than $250,000 will not be accepted for Class B shares
and purchase amounts of more than $1,000,000 will not be accepted for
Class C shares.
The following information replaces the similar information found in
"Management Fee" on page 9:
FMR Texas is the fund's sub-adviser and has primary responsibility
for managing its investments. FMR is responsible for providing other
management services. FMR pays FMR Texas 50% of its management fee
(before expense reimbursements) for FMR Texas services. FMR paid FMR
Texas a fee equal to 0.11% (annualized) of the fund's average net
assets for the three month period ended October 31, 1996 but after
payments made by FMR pursuant to the fund's Distribution and Service
Plan.
FMR paid FMR Texas fees equal to 0.11% of the fund's average net
assets for the fiscal year ended July 31, 1996, but after payments
made by FMR pursuant to the fund's Distribution and Service Plan in
effect prior to May 31, 1997.
The following information supplements the information found in
"Other Expenses" on page 9:
For the fiscal year ended July 31, 1996, fees paid by Class B to
FIIOC amounted to 0.25% of Class B's average net assets, and fees paid
by the fund to FSC amounted to 0.01% of the fund's average net
assets.
The following information supplements the information in the
"Regular Investment Plans" chart in "Investor Services" on page
14:
Class B shares must be exchanged for Class B shares of a Fidelity
Advisor fund within 18 months from the date of purchase.
The Program is not recommended for purchasing Class B shares of
Fidelity Advisor Intermediate Bond Fund or Fidelity Advisor
Intermediate Income Fund by exchange because of their CDSC schedules.
Contact Fidelity Client Services for additional information.
The following information replaces the similar information found in
"Taxes" on page 15:
For federal tax purposes, the fund's income and short-term capital
gains are distributed as dividends and taxed as ordinary income;
capital gains distributions, if any, are taxed as long-term capital
gains.
Every January, Fidelity will send you and the IRS a statement
showing the tax characterization of distributions paid to you in the
previous year.
The following information supplements the information found in
"Transaction Details" on page 17 under "Daily Money Class shares":
For the fiscal year ended July 31, 1996, total operating expenses
for Daily Money Class was 0.65% of average net assets, after voluntary
expense reimbursements of 0.05% by FMR which reflect the expense
structure in effect on that date.
