FIDELITY(registered trademark)
CASH MANAGEMENT
FUNDS
TREASURY FUND
PRIME FUND
TAX-EXEMPT FUND
ANNUAL REPORT
OCTOBER 31, 1999
(2_FIDELITY_LOGOS)(registered trademark)
CONTENTS
SCHEDULES OF INVESTMENTS &
FINANCIAL STATEMENTS
TREASURY FUND 3
PRIME FUND 12
TAX-EXEMPT FUND 28
NOTES TO THE FINANCIAL 49
STATEMENTS
REPORT OF INDEPENDENT 60
ACCOUNTANTS
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
EACH FUND SEEKS TO OBTAIN AS HIGH A LEVEL OF CURRENT INCOME AS IS
CONSISTENT WITH THE PRESERVATION OF CAPITAL AND LIQUIDITY BY INVESTING
IN HIGH-QUALITY, SHORT-TERM MONEY MARKET SECURITIES. TREASURY FUND
INVESTS IN MONEY MARKET SECURITIES ISSUED BY THE U.S. TREASURY AND
BACKED BY THE FULL FAITH AND CREDIT OF THE U.S. GOVERNMENT. PRIME FUND
INVESTS IN A BROAD RANGE OF MONEY MARKET SECURITIES. TAX-EXEMPT FUND
SEEKS TO OBTAIN CURRENT INCOME, EXEMPT FROM FEDERAL INCOME TAXES.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUNDS UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-6666 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TREASURY FUND
INVESTMENTS OCTOBER 31, 1999
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -
24.0%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
U.S. TREASURY BILLS - 1.5%
2/3/00 5.03% $ 25,000,000 $ 24,686,240
10/12/00 5.41 15,000,000 14,261,146
38,947,386
U.S. TREASURY NOTES - 22.1%
12/31/99 4.67 10,000,000 10,045,178
1/31/00 4.57 20,000,000 20,035,156
1/31/00 4.62 25,000,000 25,182,644
1/31/00 4.63 20,000,000 20,141,931
1/31/00 4.64 10,000,000 10,070,580
1/31/00 4.66 10,000,000 10,071,897
1/31/00 4.69 50,000,000 50,070,664
1/31/00 4.72 15,000,000 15,104,271
2/15/00 4.73 10,000,000 10,029,803
2/15/00 4.75 18,000,000 18,052,707
2/15/00 4.78 10,000,000 10,028,452
2/15/00 4.83 20,000,000 20,053,653
2/29/00 4.78 20,000,000 20,039,052
2/29/00 5.03 95,000,000 95,084,064
2/29/00 5.16 15,000,000 15,011,649
2/29/00 5.17 30,000,000 30,023,031
2/29/00 5.20 55,000,000 55,037,372
3/31/00 5.09 19,000,000 19,121,512
3/31/00 5.11 10,000,000 10,009,446
3/31/00 5.13 10,000,000 10,062,416
3/31/00 5.21 10,000,000 10,062,718
5/31/00 5.12 10,000,000 10,052,392
7/31/00 5.27 25,000,000 25,135,886
8/31/00 5.42 10,000,000 9,966,281
8/31/00 5.43 10,000,000 9,968,767
9/30/00 5.43 15,000,000 14,862,464
553,323,986
U.S. TREASURY NOTES -
PRINCIPAL ONLY STRIPS - 0.4%
2/15/00 4.81 10,000,000 9,862,757
TOTAL U.S. TREASURY 602,134,129
OBLIGATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 76.9%
MATURITY AMOUNT VALUE (NOTE 1)
In a joint trading account
(U.S. Treasury Obligations)
dated:
7/2/99 due:
1/10/00 At 5.18% $ 25,690,667 $ 25,000,000
1/12/00 At 5.17% 10,278,606 10,000,000
7/6/99 due 1/12/00 At 5.18% 10,273,389 10,000,000
7/15/99 due 1/18/00 At 5.12% 25,664,889 25,000,000
8/10/99 due 1/24/00 At 5.37% 10,249,108 10,000,000
8/17/99 due 1/18/00 At 5.32% 51,056,611 50,000,000
(a)
10/6/99 due 1/18/00 At 5.35% 76,159,167 75,000,000
10/7/99 due 2/1/00 At 5.34% 50,867,750 50,000,000
10/8/99 due 2/8/00 At 5.35% 50,913,958 50,000,000
10/21/99 due 11/10/99 At 5.14% 100,285,556 100,000,000
10/29/99 due 11/1/99 At:
5.17% 33,606,465 33,592,000
5.24% 1,486,648,381 1,486,000,000
TOTAL REPURCHASE AGREEMENTS 1,924,592,000
TOTAL INVESTMENTS PORTFOLIO - 2,526,726,129
100.9%
NET OTHER ASSETS - (0.9)% (23,071,564)
NET ASSETS - 100% $ 2,503,654,565
Total Cost for Income Tax Purposes $ 2,526,726,129
</TABLE>
Prior to this report, certain information related to portfolio
holdings was stated as a percentage of the fund's investments.
LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
INCOME TAX INFORMATION
At October 31, 1999, the fund had a capital loss carryforward of
approximately $439,000 of which $391,000 and $48,000 will expire on
October 31, 2001 and 2007, respectively.
A total of 23% of the dividends distributed during the fiscal year was
derived from interest on U.S Government securities which is generally
exempt from state income tax (unaudited). The fund will notify
shareholders in January 2000 of the applicable percentage for use in
preparing 1999 income tax returns.
TREASURY FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
ASSETS
Investment in securities, at $ 2,526,726,129
value (including repurchase
agreements of
$1,924,592,000) - See
accompanying schedule
Receivable for fund shares 17,321,708
sold
Interest receivable 9,473,681
TOTAL ASSETS 2,553,521,518
LIABILITIES
Payable to custodian bank $ 276
Payable for investments 24,686,240
purchased
Payable for fund shares 20,364,141
redeemed
Distributions payable 3,070,660
Accrued management fee 331,341
Distribution fees payable 874,442
Other payables and accrued 539,853
expenses
TOTAL LIABILITIES 49,866,953
NET ASSETS $ 2,503,654,565
Net Assets consist of:
Paid in capital $ 2,504,102,054
Accumulated net realized gain (447,489)
(loss) on investments
NET ASSETS $ 2,503,654,565
CALCULATION OF MAXIMUM $1.00
OFFERING PRICE DAILY MONEY
CLASS: NET ASSET VALUE,
offering price and
redemption price per share
($1,335,457,506 (divided by)
1,335,668,546 shares)
CAPITAL RESERVES CLASS: NET $1.00
ASSET VALUE, offering price
and redemption price per
share ($949,504,384 (divided
by) 949,644,737 shares)
ADVISOR B CLASS: NET ASSET $1.00
VALUE and offering price per
share ($156,646,534
(divided by) 156,680,988
shares) A
ADVISOR C CLASS: NET ASSET $1.00
VALUE and offering price
price per share
($62,046,141 (divided by)
62,055,947 shares) A
A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
INTEREST INCOME $ 110,319,533
Expenses
Management fee $ 5,563,905
Transfer agent fees 5,156,705
Distribution fees 8,482,271
Accounting fees and expenses 208,303
Non-interested trustees' 7,060
compensation
Custodian fees and expenses 11,369
Registration fees 360,517
Audit 36,125
Legal 8,617
Miscellaneous 11,195
Total expenses before 19,846,067
reductions
Expense reductions (2,461,554) 17,384,513
NET INTEREST INCOME 92,935,020
NET REALIZED GAIN (LOSS) ON (56,252)
INVESTMENTS
NET INCREASE IN NET ASSETS $ 92,878,768
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31, 1999 YEAR ENDED OCTOBER 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 92,935,020 $ 77,778,958
Net realized gain (loss) (56,252) 48,136
NET INCREASE (DECREASE) IN 92,878,768 77,827,094
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (92,935,020) (77,778,958)
from net interest income
Share transactions - net 670,713,649 238,198,887
increase (decrease)
TOTAL INCREASE (DECREASE) 670,657,397 238,247,023
IN NET ASSETS
NET ASSETS
Beginning of period 1,832,997,168 1,594,750,145
End of period $ 2,503,654,565 $ 1,832,997,168
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
YEARS ENDED OCTOBER 31, 1999 1998 1997 1996 E 1996 F 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .043 .049 .049 .012 .049 .049
Less Distributions
From net interest income (.043) (.049) (.049) (.012) (.049) (.049)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 4.38% 5.04% 4.97% 1.19% 5.06% 5.02%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,335 $ 1,261 $ 1,284 $ 1,801 $ 1,801 $ 1,828
(in millions)
Ratio of expenses to average .65% D .65% D .65% D .65% A, D .65% D .65% D
net assets
Ratio of net interest income 4.30% 4.93% 4.88% 4.66% A 4.94% 4.89%
to average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E THREE MONTHS ENDED OCTOBER 31, 1996
F YEARS ENDED JULY 31
FINANCIAL HIGHLIGHTS - CAPITAL RESERVES CLASS
YEARS ENDED OCTOBER 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000000
period
Income from Investment
Operations
Net interest income .040 .047 .000134
Less Distributions
From net interest income (.040) (.047) (.000134)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000000
TOTAL RETURN B, C 4.12% 4.78% .01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 950 $ 480 $ 265
millions)
Ratio of expenses to average .90% D .90% D .90% A, D
net assets
Ratio of net interest income 4.06% 4.67% 4.93% A
to average net assets
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FOR OCTOBER 31, 1997 (COMMENCEMENT OF SALE OF CAPITAL RESERVES CLASS
SHARES)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - ADVISOR B CLASS
YEARS ENDED OCTOBER 31, 1999 1998 1997 1996 E 1996 F 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .035 .042 .041 .010 .043 .042
Less Distributions
From net interest income (.035) (.042) (.041) (.010) (.043) (.042)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 3.61% 4.26% 4.20% 1.01% 4.33% 4.28%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 157 $ 76 $ 46 $ 20 $ 40 $ 3
(in millions)
Ratio of expenses to average 1.40% D 1.40% D 1.39% D 1.35% A, D 1.35% D 1.35% D
net assets
Ratio of net interest income 3.60% 4.16% 4.24% 3.96% A 4.13% 4.22%
to average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E THREE MONTHS ENDED OCTOBER 31, 1996
F YEARS ENDED JULY 31
FINANCIAL HIGHLIGHTS - ADVISOR C CLASS
YEARS ENDED OCTOBER 31, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .035 .041
Less Distributions
From net interest income (.035) (.041)
Net asset value, end of period $ 1.000 $ 1.000
TOTAL RETURN B, C 3.61% 4.22%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 62 $ 16
millions)
Ratio of expenses to average 1.40% D 1.40% A, D
net assets
Ratio of net interest income 3.61% 4.24% A
to average net assets
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE CONTINGENT DEFERRED SALES CHARGE
AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FOR THE PERIOD NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF ADVISOR C
CLASS SHARES) TO OCTOBER 31, 1998
PRIME FUND
INVESTMENTS OCTOBER 31, 1999
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 20.4%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
DOMESTIC CERTIFICATES OF
DEPOSIT - 0.7%
Fleet National Bank
11/3/99 5.34% (b) $ 22,000,000 $ 21,988,782
Morgan Guaranty Trust Co., NY
2/22/00 6.10 25,000,000 25,000,000
46,988,782
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - 5.2%
Abbey National PLC
11/10/99 5.39 45,000,000 45,000,000
ABN-AMRO Bank NV
11/12/99 5.00 25,000,000 24,999,591
Bank of Scotland Treasury
Services PLC
11/30/99 5.40 50,000,000 49,999,309
Barclays Bank PLC
7/28/00 5.80 25,000,000 25,000,000
Dresdner Bank AG
1/31/00 6.04 50,000,000 50,000,000
Halifax PLC
11/8/99 4.95 40,000,000 40,000,000
11/9/99 5.39 45,000,000 45,000,000
12/13/99 5.00 25,000,000 25,000,000
2/1/00 6.13 50,000,000 50,000,000
National Australia Bank Ltd.
11/8/99 4.96 25,000,000 25,000,000
379,998,900
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS - 14.5%
Bank of Scotland Treasury
Services
11/2/99 5.32 (b) 30,000,000 29,995,000
Banque Nationale de Paris
11/1/99 5.33 30,000,000 30,000,000
Barclays Bank PLC
11/1/99 5.38 (b) 65,000,000 64,982,825
11/1/99 5.39 (b) 25,000,000 24,992,247
11/8/99 5.33 15,000,000 15,000,000
6/14/00 5.66 50,000,000 49,985,160
Deutsche Bank AG
11/3/99 5.38 100,000,000 100,000,000
1/13/00 6.00 50,000,000 50,000,000
2/16/00 5.12 15,000,000 14,997,881
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS -
CONTINUED
Landesbank Hessen-Thuringen
1/3/00 6.07% (b) $ 200,000,000 $ 199,873,847
Lloyds Bank PLC
7/17/00 5.70 15,000,000 14,994,901
National Westminster Bank PLC
3/15/00 5.15 30,000,000 29,995,740
RaboBank Nederland Coop.
Central
7/12/00 5.75 50,000,000 49,983,335
Royal Bank of Scotland PLC
1/31/00 6.04 130,000,000 130,000,000
Societe Generale, France
11/19/99 5.36 (b) 26,000,000 25,991,301
11/29/99 5.40 (b) 24,000,000 23,972,516
12/6/99 5.21 57,000,000 57,000,000
Svenska Handelsbanken AB
11/16/99 5.52 (b) 24,000,000 24,000,498
UBS AG
5/18/00 5.35 25,000,000 24,992,136
7/5/00 5.80 25,000,000 24,993,524
Westdeutsche Landesbank
Girozentrale
11/19/99 5.34 25,000,000 25,000,000
11/22/99 5.34 45,000,000 45,000,000
1,055,750,911
TOTAL CERTIFICATES OF DEPOSIT 1,482,738,593
COMMERCIAL PAPER - 59.6%
ABN-AMRO North America, Inc.
12/6/99 5.20 16,000,000 15,921,211
Aspen Funding Corp.
11/1/99 5.38 100,000,000 100,000,000
1/26/00 6.16 44,000,000 43,364,078
1/27/00 6.12 5,000,000 4,927,500
Asset Securitization Coop.
Corp.
11/3/99 5.51 (b) 40,000,000 40,000,000
12/20/99 5.54 (b) 40,000,000 40,000,000
2/14/00 5.60 35,000,000 34,446,708
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Asset Securitization Coop.
Corp. - continued
2/14/00 5.93% $ 50,000,000 $ 49,161,458
2/24/00 6.00 48,000,000 47,101,467
Associates Corp. of North
America
3/6/00 5.91 25,000,000 24,496,875
3/7/00 5.90 75,000,000 73,486,583
Baker Hughes, Inc.
11/1/99 5.35 30,000,000 30,000,000
Bank One Corp.
3/22/00 6.08 25,000,000 24,416,715
Caisse des Depots et
Consignations
11/4/99 5.32 50,300,000 50,277,784
Centric Capital Corp.
11/2/99 5.29 63,000,000 62,990,743
11/3/99 5.30 50,000,000 49,985,306
11/12/99 5.47 45,000,000 44,925,750
11/15/99 5.38 17,700,000 17,663,105
11/26/99 5.37 24,600,000 24,508,604
11/29/99 5.45 22,770,000 22,674,720
1/18/00 6.15 18,900,000 18,652,253
2/4/00 6.16 35,000,000 34,440,292
2/11/00 6.14 17,000,000 16,709,555
2/17/00 6.15 20,000,000 19,638,200
Chase Manhattan Corp.
4/26/00 6.03 50,000,000 48,561,875
CIESCO LP
11/1/99 5.35 50,000,000 50,000,000
11/10/99 5.37 8,000,000 7,989,300
11/17/99 5.35 10,000,000 9,976,311
CIT Group, Inc.
11/15/99 5.33 10,000,000 9,979,389
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
11/2/99 5.33 30,000,000 29,995,567
11/8/99 5.44 13,000,000 12,986,375
11/9/99 5.42 20,000,000 19,976,044
11/9/99 5.43 14,000,000 13,983,200
11/10/99 5.40 8,000,000 7,989,240
11/17/99 5.39 25,000,000 24,940,333
11/23/99 5.39 36,000,000 35,882,080
11/23/99 5.43 30,000,000 29,901,000
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Corporate Receivables Corp.
11/19/99 5.40% $ 40,000,000 $ 39,892,600
11/23/99 5.38 30,000,000 29,901,917
1/25/00 6.11 25,000,000 24,645,833
Cregem North America, Inc.
11/4/99 4.97 25,000,000 24,989,896
CXC, Inc.
11/1/99 5.35 152,500,000 152,500,000
11/15/99 5.37 20,000,000 19,958,389
11/15/99 5.41 10,000,000 9,979,078
11/22/99 5.49 (b) 40,000,000 39,997,318
2/9/00 6.17 25,000,000 24,579,861
Daimler-Chrysler North
America Holding Corp.
11/3/99 5.44 10,000,000 9,997,006
2/23/00 6.10 14,000,000 13,735,330
2/24/00 6.10 40,000,000 39,237,167
3/6/00 6.05 18,000,000 17,628,300
Delaware Funding Corp.
11/8/99 5.42 20,000,000 19,979,039
11/15/99 5.38 68,000,000 67,858,258
1/27/00 6.01 50,000,000 49,288,896
2/4/00 6.12 30,467,000 29,984,606
Deutsche Bank Financial, Inc.
12/8/99 5.21 80,000,000 79,583,133
Edison Asset Securitization LLC
11/8/99 5.44 25,000,000 24,973,701
11/15/99 5.46 10,000,000 9,978,883
11/17/99 5.42 20,000,000 19,952,089
1/21/00 6.05 50,000,000 49,331,750
1/25/00 6.07 20,000,000 19,718,792
2/7/00 5.97 34,748,000 34,195,584
2/25/00 5.98 12,957,000 12,713,596
3/13/00 5.96 22,000,000 21,529,402
Enterprise Funding Corp.
11/2/99 5.40 31,279,000 31,274,352
11/10/99 5.39 23,069,000 23,038,030
11/15/99 5.38 4,849,000 4,838,893
11/15/99 5.41 15,000,000 14,968,617
11/17/99 5.40 5,446,000 5,433,002
11/18/99 5.38 10,000,000 9,974,689
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Enterprise Funding Corp. -
continued
11/22/99 5.38% $ 50,000,000 $ 49,843,667
Falcon Asset Securitization
Corp.
11/1/99 5.30 36,395,000 36,395,000
11/1/99 5.46 15,000,000 15,000,000
11/10/99 5.45 10,000,000 9,986,525
11/15/99 5.38 20,000,000 19,958,311
11/16/99 5.38 16,000,000 15,964,267
11/22/99 5.39 54,000,000 53,831,160
11/22/99 5.42 20,000,000 19,937,117
11/23/99 5.37 45,000,000 44,852,875
1/31/00 6.03 18,000,000 17,731,550
2/4/00 6.02 12,000,000 11,813,800
2/10/00 6.02 16,000,000 15,736,053
Fleet Funding Corp.
2/16/00 6.18 16,000,000 15,712,289
2/28/00 6.04 32,000,000 31,375,911
Fortis Funding LLC
3/7/00 5.90 47,000,000 46,049,934
GE Capital International
Funding, Inc.
2/17/00 6.09 60,000,000 58,927,200
3/7/00 5.93 25,000,000 24,491,118
3/15/00 6.06 25,000,000 24,446,875
General Electric Capital Corp.
2/16/00 5.60 45,000,000 44,275,075
3/3/00 6.04 20,000,000 19,597,517
3/7/00 5.91 40,000,000 39,188,611
3/10/00 6.10 50,000,000 48,923,889
3/13/00 5.90 50,000,000 48,943,389
General Electric Capital
Services, Inc.
2/14/00 5.60 60,000,000 59,051,500
General Electric Co.
11/15/99 5.33 50,000,000 49,896,944
General Motors Acceptance Corp.
2/16/00 5.60 50,000,000 49,194,528
2/23/00 5.60 50,000,000 49,141,833
Household Finance Corp.
12/13/99 5.31 25,000,000 24,849,208
J.P. Morgan & Co., Inc.
12/6/99 5.20 25,000,000 24,876,771
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
J.P. Morgan & Co., Inc. -
continued
2/9/00 5.62% $ 25,000,000 $ 24,621,528
Kitty Hawk Funding Corp.
11/2/99 5.31 10,000,000 9,998,528
11/8/99 5.42 19,637,000 19,616,458
11/10/99 5.39 26,120,000 26,084,934
11/15/99 5.41 15,117,000 15,085,372
11/18/99 5.44 18,000,000 17,954,100
Marsh USA, Inc.
11/3/99 5.31 25,000,000 24,992,639
Merrill Lynch & Co., Inc.
2/22/00 5.60 78,000,000 76,675,452
Morgan Stanley Dean Witter &
Co.
2/2/00 5.62 50,000,000 49,296,042
Nationwide Building Society
11/4/99 4.98 10,000,000 9,995,950
New Center Asset Trust
11/3/99 5.40 36,000,000 35,989,300
11/22/99 5.38 60,000,000 59,812,750
Newport Funding Corp.
11/15/99 5.46 (b) 40,000,000 40,000,000
2/1/00 6.17 25,000,000 24,613,472
Norwest Financial, Inc.
3/6/00 5.91 50,000,000 48,999,000
Park Avenue Receivables Corp.
11/3/99 5.43 21,000,000 20,993,700
Preferred Receivables Funding
Corp.
11/9/99 5.40 40,435,000 40,386,658
11/15/99 5.38 36,000,000 35,924,960
11/15/99 5.47 25,000,000 24,947,500
11/16/99 5.45 12,860,000 12,831,119
11/18/99 5.44 26,000,000 25,933,946
1/25/00 6.14 20,000,000 19,715,250
1/31/00 6.01 10,000,000 9,851,367
2/4/00 6.00 16,000,000 15,752,156
2/9/00 6.00 18,000,000 17,707,000
Salomon Smith Barney
Holdings, Inc.
11/1/99 5.31 50,000,000 50,000,000
2/8/00 5.63 35,000,000 34,474,475
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Svenska Handelsbanken, Inc.
12/2/99 5.15% $ 20,000,000 $ 19,913,544
Three Rivers Funding Corp.
11/9/99 5.37 10,000,000 9,988,111
11/9/99 5.41 5,385,000 5,378,562
11/15/99 5.38 25,000,000 24,947,889
11/16/99 5.40 10,000,000 9,977,583
Triple-A One Funding Corp.
11/3/99 5.42 50,000,000 49,985,000
11/8/99 5.43 24,080,000 24,054,716
11/16/99 5.38 16,768,000 16,730,551
UBS Finance, Inc.
11/17/99 5.00 50,000,000 49,891,667
12/7/99 5.27 55,000,000 54,717,850
12/13/99 5.00 40,000,000 39,773,667
Windmill Funding Corp.
11/1/99 5.38 14,000,000 14,000,000
11/1/99 5.42 10,000,000 10,000,000
11/9/99 5.43 10,000,000 9,988,000
11/18/99 5.40 10,000,000 9,974,642
11/22/99 5.38 25,000,000 24,921,979
11/22/99 5.39 20,000,000 19,937,467
2/22/00 5.98 5,000,000 4,908,501
TOTAL COMMERCIAL PAPER 4,328,943,930
FEDERAL AGENCIES - 4.5%
FANNIE MAE - 1.0%
Agency Coupons - 1.0%
11/23/99 5.23 (b) 70,000,000 69,973,033
FEDERAL HOME LOAN BANK - 2.8%
Agency Coupons - 2.8%
12/1/99 5.30 (b) 72,000,000 71,995,644
1/4/00 5.92 (b) 135,000,000 134,914,263
206,909,907
FEDERAL AGENCIES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
FREDDIE MAC - 0.7%
Discount Notes - 0.7%
3/3/00 5.72% $ 50,000,000 $ 49,050,167
TOTAL FEDERAL AGENCIES 325,933,107
BANK NOTES - 7.3%
American Express Centurion Bank
11/10/99 5.38 (b) 35,000,000 35,000,000
Bank of America NA
2/22/00 6.03 50,000,000 50,000,000
Bank One NA, Chicago
1/24/00 6.16 (b) 40,000,000 39,965,076
Comerica Bank, Detroit
11/9/99 5.38 (b) 8,000,000 7,999,930
First Union National Bank,
North Carolina
11/24/99 5.38 (b) 50,000,000 50,000,000
1/4/00 6.17 (b) 40,000,000 40,000,000
Fleet National Bank
11/1/99 5.46 (b) 25,000,000 24,991,639
Fleet National Bank, Providence
11/4/99 5.36 (b) 22,000,000 21,999,910
Key Bank NA
11/16/99 5.53 (b) 40,000,000 40,000,000
Mellon Bank NA, Pittsburgh
11/18/99 5.38 (b) 50,000,000 49,992,833
NationsBank NA
11/1/99 5.40 (b) 20,000,000 19,995,844
11/1/99 5.41 (b) 25,000,000 24,995,288
PNC Bank NA, Pittsburgh
11/3/99 5.36 (b) 22,000,000 21,999,982
US Bank NA
11/22/99 5.36 (b) 100,000,000 99,964,315
TOTAL BANK NOTES 526,904,817
MEDIUM-TERM NOTES - 6.4%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Bishops Gate Resources
Mortgage Trust
11/1/99 5.60% (b) $ 16,000,000 $ 16,000,000
CIESCO LP
11/15/99 5.39 (b) 85,000,000 84,988,137
CIT Group, Inc.
11/1/99 5.45 (b) 30,000,000 29,989,838
11/1/99 5.55 (b) 55,000,000 54,953,218
GE Life & Annuity Assurance Co.
11/1/99 5.50 (b)(c) 58,000,000 58,000,000
General Electric Capital Corp.
11/3/99 5.29 (b) 30,000,000 30,000,000
1/12/00 6.13 (b) 17,000,000 17,000,000
General Motors Acceptance
Corp. Mortgage Credit
11/1/99 5.48 (b) 30,000,000 30,000,000
12/1/99 5.48 30,000,000 29,863,623
Goldman Sachs Group L.P.
11/10/99 5.42 (a)(b) 19,000,000 19,000,000
1/7/00 6.33 (b)(c) 26,000,000 26,000,000
1/27/00 6.30 (b)(c) 20,000,000 20,000,000
Ikon Receivables LLC
10/16/00 6.04 50,326,000 50,326,000
TOTAL MEDIUM-TERM NOTES 466,120,816
SHORT-TERM NOTES - 2.9%
Jackson National Life
Insurance Co.
1/1/00 6.23 (b)(c) 25,000,000 25,000,000
Monumental Life Insurance Co.
11/1/99 5.54 (c) 18,000,000 18,000,000
11/1/99 5.57 (b)(c) 20,000,000 20,000,000
New York Life Insurance Co.
12/1/99 5.62 (b)(c) 17,000,000 17,000,000
12/22/99 6.20 (b)(c) 15,000,000 15,000,000
RACERS Series 99 -16MM,
11/2/99 5.42 (a)(b) 33,000,000 33,000,000
SMM Trust Series 1999 E,
1/5/00 6.11 (a)(b) 12,000,000 12,000,000
SHORT-TERM NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
SMM Trust Series 1999-I,
11/26/99 5.49% (a)(b) $ 12,000,000 $ 12,000,000
Strategic Money Market Trust
Series 1999 A6,
1/13/00 6.30 (a)(b) 60,000,000 60,000,000
TOTAL SHORT-TERM NOTES 212,000,000
REPURCHASE AGREEMENTS - 0.3%
MATURITY AMOUNT
In a joint trading account $ 22,222,565 22,213,000
(U.S. Treasury Obligations)
dated 10/29/99 due 11/1/99
At 5.17%
TOTAL INVESTMENT PORTFOLIO - 7,364,854,263
101.4%
NET OTHER ASSETS - (1.4)% $ (104,527,901)
NET ASSETS - 100% $ 7,260,326,362
Total Cost for Income Tax Purposes $ 7,364,854,263
</TABLE>
Prior to this report, certain information related to portfolio
holdings was stated as a percentage of the fund's investments.
LEGEND
(a) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $136,000,000 or 1.9% of net assets.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due dates on these types of
securities reflects the next interest rate reset date or, when
applicable, the final maturity date.
(c) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE COST
GE Life & Annuity Assurance 4/8/99 $ 58,000,000
Co. 5.50%, 11/1/99
Goldman Sachs Group L.P.: 1/22/99 $ 20,000,000
6.3%, 1/27/00
6.33%, 1/7/00 12/7/98 $ 26,000,000
Jackson National Life 7/6/99 $ 25,000,000
Insurance Co. 6.23%, 1/1/00
Monumental Life Insurance 7/31/98 - 9/17/98 $ 18,000,000
Co.: 5.54%, 11/1/99
5.57%, 11/1/99 3/12/99 $ 20,000,000
New York Life Insurance Co.: 8/13/99 $ 17,000,000
5.62%, 12/1/99
6.2%, 12/22/99 12/21/98 $ 15,000,000
OTHER INFORMATION
At the end of period, restricted securities (excluding 144A issues)
amounted to $199,000,000 or 2.7% of net assets.
INCOME TAX INFORMATION
At October 31, 1999, the fund had a capital loss carryforward of
approximately $735,000 of which $101,000, $584,000, $48,000 and $2,000
will expire on October 31, 2001, 2002, 2003 and 2005, respectively.
A total of 1.89% of the dividends distributed during the fiscal year
was derived from interest on U.S Government securities which is
generally exempt from state income tax (unaudited). The fund will
notify shareholders in January 2000 of the applicable percentage for
use in preparing 1999 income tax returns.
PRIME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
ASSETS
Investment in securities, at $ 7,364,854,263
value (including repurchase
agreements of $22,213,000) -
See accompanying schedule
Receivable for fund shares 127,069,425
sold
Interest receivable 22,434,847
Other receivables 2,939
TOTAL ASSETS 7,514,361,474
LIABILITIES
Payable to custodian bank $ 107,230
Payable for investments 29,863,623
purchased
Payable for fund shares 216,897,579
redeemed
Distributions payable 1,931,236
Accrued management fee 842,563
Distribution fees payable 2,228,029
Other payables and accrued 2,164,852
expenses
TOTAL LIABILITIES 254,035,112
NET ASSETS $ 7,260,326,362
Net Assets consist of:
Paid in capital $ 7,261,061,194
Accumulated net realized gain (734,832)
(loss) on investments
NET ASSETS $ 7,260,326,362
DAILY MONEY CLASS: NET ASSET $1.00
VALUE, offering price and
redemption price per share
($4,335,866,903 (divided by)
4,335,942,700 shares)
CAPITAL RESERVES CLASS: NET $1.00
ASSET VALUE, offering price
and redemption price per
share ($2,924,459,459
(divided by) 2,925,106,300
shares)
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
INTEREST INCOME $ 343,834,643
EXPENSES
Management fee $ 16,491,603
Transfer agent fees 15,001,545
Distribution fees 23,332,118
Accounting fees and expenses 544,121
Non-interested trustees' 21,319
compensation
Custodian fees and expenses 120,064
Registration fees 1,403,483
Audit 44,877
Legal 26,561
Miscellaneous 252,644
Total expenses before 57,238,335
reductions
Expense reductions (7,519,654) 49,718,681
NET INTEREST INCOME 294,115,962
NET REALIZED GAIN (LOSS) ON 2,085
INVESTMENTS
NET INCREASE IN NET ASSETS $ 294,118,047
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31, 1999 YEAR ENDED OCTOBER 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 294,115,962 $ 247,382,658
Net realized gain (loss) 2,085 54,807
NET INCREASE (DECREASE) IN 294,118,047 247,437,465
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (294,115,962) (247,382,658)
from net interest income
Share transactions - net 1,607,217,411 1,202,246,692
increase (decrease)
TOTAL INCREASE (DECREASE) 1,607,219,496 1,202,301,499
IN NET ASSETS
NET ASSETS
Beginning of period 5,653,106,866 4,450,805,367
End of period $ 7,260,326,362 $ 5,653,106,866
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
YEARS ENDED OCTOBER 31, 1999 1998 1997 1996 E 1996 F 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .046 .050 .050 .012 .050 .050
Less Distributions
From net interest income (.046) (.050) (.050) (.012) (.050) (.050)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 4.65% 5.15% 5.06% 1.22% 5.13% 5.16%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 4,336 $ 3,397 $ 2,687 $ 2,663 $ 2,581 $ 2,139
(in millions)
Ratio of expenses to average .65% D .65% D .65% D .65% A, D .65% D .65% D
net assets
Ratio of net interest income 4.57% 5.03% 4.95% 4.85% A 5.00% 5.11%
to average net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E THREE MONTHS ENDED OCTOBER 31, 1996
F YEARS ENDED JULY 31
FINANCIAL HIGHLIGHTS - CAPITAL RESERVES CLASS
YEARS ENDED OCTOBER 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000000
period
Income from Investment
Operations
Net interest income .043 .048 .000131
Less Distributions
From net interest income (.043) (.048) (.000131)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000000
TOTAL RETURN B, C 4.39% 4.89% .01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 2,924 $ 2,256 $ 1,764
millions)
Ratio of expenses to average .90% D .90% D .90% A, D
net assets
Ratio of net interest income 4.30% 4.79% 4.78% A
to average net assets
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FOR OCTOBER 31, 1997 (COMMENCEMENT OF SALE OF CAPITAL RESERVES CLASS
SHARES)
TAX-EXEMPT FUND
INVESTMENTS OCTOBER 31, 1999
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MUNICIPAL SECURITIES - 100.8%
PRINCIPAL AMOUNT VALUE (NOTE 1)
ALABAMA - 3.2%
Alabama Spl. Care Facilities $ 3,800,000 $ 3,800,000
Fing. Auth. Birmingham Rev.
Bonds (Ascension Health Cr.
Proj.) Series B, 3.8%,
tender 2/16/00 (a)
Alabama Spl. Care Facilities 5,700,000 5,700,000
Fing. Auth. Mobile Rev.
Bonds (Ascension Health Cr.
Proj.) Series B, 3.8%,
tender 1/26/00 (a)
Birmingham Pub. Park & 2,800,000 2,800,000
Recreation Board Rev.
(McWane Ctr. Proj.) Series
1997, 3.55%, LOC Amsouth
Bank, Birmingham, VRDN (b)
Columbia Ind. Dev. Board 8,500,000 8,500,000
Poll. Cont. Rev. Rfdg.
(Alabama Pwr. Co. Proj.)
Series 1999 C, 3.6%, VRDN (b)
Jefferson County 1,055,000 1,055,000
Participating VRDN Series
98-124, 3.55% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (b)(c)
21,855,000
ALASKA - 1.4%
Alaska Hsg. Fin. Corp. 1,100,000 1,100,000
Participating VRDN Series
1999 D, 3.6% (Liquidity
Facility First Union Nat'l.
Bank, North Carolina) (b)(c)
Valdez Marine Term. Rev. 8,495,000 8,495,000
Participating VRDN Series
MSDW 1998 146, 3.55%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(b)(c)
9,595,000
ARIZONA - 2.3%
Maricopa County Poll. Cont. 1,000,000 1,000,000
Corp. Rev. Bonds (Southern
California Edison Co.)
Series 1985 F, 3.55% tender
1/31/00, CP mode
Pima County Ind. Dev. Auth. 4,100,000 4,100,000
Multi-family Hsg. Rev. (La
Cholla Apt. Proj.) Series
1996, 3.55%, LOC Chase Bank
of Texas NA, VRDN (b)
Pinal County Ind. Dev. Auth. 6,800,000 6,800,000
Hosp. Rev. (Casa Grande Med.
Ctr. Proj.) Series 1995,
3.6%, LOC Chase Manhattan
Bank, VRDN (b)
Salt River Proj. Agric. Impt.
& Pwr. District Elec. Sys.
Rev.:
3.55% 11/1/99, CP 1,000,000 1,000,000
3.8% 1/18/00, CP 1,600,000 1,600,000
3.8% 1/25/00, CP 1,000,000 1,000,000
15,500,000
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
CALIFORNIA - 1.6%
California Higher Ed. Student
Ln. Auth. Bonds:
Series 1987 A, 3.18%, tender $ 6,500,000 $ 6,500,000
5/1/00, LOC Nat'l.
Westminster Bank PLC
Series 1992 A2, 3.18%, tender 1,000,000 1,000,000
4/1/00, LOC Student Ln.
Marketing Assoc.
Los Angeles Reg'l. Arpt. 3,100,000 3,100,000
Impt. Rev. (Los Angeles
Int'l. Arpt., Air France)
3.75%, LOC Societe Generale,
France, VRDN (b)
10,600,000
COLORADO - 0.2%
Colorado Springs Util. Sys. 1,000,000 1,000,000
Impt. Rev. Participating
VRDN Series SGB 28, 3.57%
(Liquidity Facility Societe
Generale, France) (b)(c)
CONNECTICUT - 2.2%
Connecticut Health & Edl. 14,500,000 14,500,000
Facilities Auth. Rev. (Yale
Univ. Proj.) Series U2,
3.55%, VRDN (b)
DELAWARE - 0.1%
Delaware Econ. Dev. Auth. 750,000 750,000
Multi-family Rev.
(Schoolhouse Trust Prog.)
3.65%, LOC HSBC Bank USA,
VRDN (b)
DISTRICT OF COLUMBIA - 0.5%
District of Columbia Rev. 3,575,000 3,575,000
(American Assoc. Med.
College) 3.48% (AMBAC
Insured), VRDN (b)
FLORIDA - 8.6%
Brevard County Hsg. Fin. 2,180,000 2,180,000
Auth. (Sun Pointe Bay Apts.
Proj.) Series 1993, 3.6%
(Continental Casualty Co.
Guaranteed), VRDN (b)
Brevard County School 1,200,000 1,204,607
District TAN 4% 6/30/00
Dade County Spl. Rev. (Youth 4,410,000 4,410,000
Fair & Exposition Proj.)
3.6%, LOC SunTrust Bank,
Miami NA, VRDN (b)
Eustis Multi-Purp. Rev. 1,200,000 1,200,000
Series 1997 A, 3.6%, LOC
SunTrust Bank, Central FL
NA, VRDN (b)
Halifax Hosp. Med. Ctr. TAN 3,625,000 3,624,958
3.5% 3/15/00, LOC Bank of
America NA
Indian River County Hosp.
District Hosp. Rev. Bonds:
Series 1988, 3.6% tender 4,000,000 4,000,000
11/2/99, LOC Kredietbank, CP
mode
Series 1989:
3.6% tender 11/2/99, LOC 1,800,000 1,800,000
Kredietbank, CP mode
3.75% tender 12/1/99, LOC 1,200,000 1,200,000
Kredietbank, CP mode
Series 1990, 3.55% tender 1,000,000 1,000,000
11/1/99, LOC Kredietbank, CP
mode
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
FLORIDA - CONTINUED
Jacksonville Elec. Auth. Rev. $ 3,100,000 $ 3,100,000
Series C1, 3.75% 1/20/00, CP
Jacksonville Poll. Cont. Rev.
Bonds (Florida Pwr. & Lt.
Co. Proj.):
Series 1992, 3.55% tender 1,700,000 1,700,000
2/10/00, CP mode
Series 1994, 3.55% tender 1,000,000 1,000,000
2/10/00, CP mode
Lee County Hosp. Board Hosp. 1,100,000 1,100,000
Rev. Bonds (Lee Memorial
Hosp. Proj.) Series 1997 B,
3.4% tender 11/10/99, CP mode
Miami Dade County School 4,600,000 4,617,496
District TAN Series 1999, 4%
6/28/00
Miami Health Facilities Auth. 1,900,000 1,900,000
Rev. (Miami Jewish Home and
Hosp. for the Aged Proj.)
Series 1992, 3.6%, LOC
SunTrust Bank, Miami NA,
VRDN (b)
Orange County Ed. Facilities 2,100,000 2,100,000
Auth. Ed. Rev. (Rollins
College Proj.) Series 1999,
3.6%, LOC Bank of America
NA, VRDN (b)
Pasco County Hsg. Fin. Auth. 2,000,000 2,000,000
Multi-family Hsg. Rev.
(Carlton Arms of Magnolia
Valley) Series 1985, 3.675%,
LOC First Union Nat'l. Bank,
North Carolina, VRDN (b)
Pensacola Rev. (Harborview 2,740,000 2,740,000
Corp. Proj.) 3.55%, LOC
Amsouth Bank, Birmingham,
VRDN (b)
Reedy Creek Impt. District 4,900,000 4,900,000
Participating VRDN Series
96C0904 Class A, 3.54%
(Liquidity Facility
Citibank, New York NA) (b)(c)
Sarasota County Pub. Hosp. 1,000,000 1,000,000
District Rev. Bonds Series
A, 3.8% tender 3/10/00, CP
mode
Sunshine State Govt. Fing. 6,800,000 6,800,000
Commission Rev. Bonds Series
1986, 3.6% tender 11/12/99
(AMBAC Insured), CP mode
Tampa Sports Auth. 1,900,000 1,900,000
Participating VRDN Series
SGA 61, 3.55% (Liquidity
Facility Societe Generale,
France) (b)(c)
Univ. of Florida Athletic 2,200,000 2,200,000
Assoc. Cap. Impt. Rev.
3.75%, LOC SunTrust Bank,
Miami NA, VRDN (b)
57,677,061
GEORGIA - 8.8%
Bibb County Dev. Auth. Rev. 6,100,000 6,100,000
Rfdg. & Impt. Series 1998,
3.6%, LOC SunTrust Bank of
Atlanta, VRDN (b)
Brooks County Dev. Auth. Rev. 2,400,000 2,400,000
(Presbyterian Home, Inc.
Proj.) 3.6%, LOC SunTrust
Bank of Atlanta, VRDN (b)
Burke County Ind. Dev. Auth.
Poll. Cont. Rev. Bonds
(Georgia Pwr. Co. Plant
Vogtle Proj.):
Second Series 1994, 3.75% 1,000,000 1,000,000
tender 1/12/00, CP mode
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
GEORGIA - CONTINUED
Burke County Ind. Dev. Auth.
Poll. Cont. Rev. Bonds
(Georgia Pwr. Co. Plant
Vogtle Proj.): - continued
Second Series 1995, 3.78% $ 1,500,000 $ 1,500,000
tender 4/25/00, CP mode
Third Series 1995, 3.75% 10,585,000 10,585,000
tender 4/24/00, CP mode
DeKalb County Dev. Auth. Rev.:
(BDS Oglethorpe Univ. Proj.) 5,515,000 5,515,000
3.6%, LOC SunTrust Bank of
Atlanta, VRDN (b)
(Marist School, Inc. Proj.) 3,500,000 3,500,000
Series 1999, 3.6%, LOC
SunTrust Bank of Atlanta,
VRDN (b)
Fulton County Hsg. Auth. 5,670,000 5,670,000
Multi-family Hsg. Rev. Rfdg.
(Champions Green Apts.
Proj.) Series 1994 B, 3.5%,
LOC Southtrust Bank NA, VRDN
(b)
Georgia Gen. Oblig. 3,000,000 3,000,000
Participating VRDN 3.57%
(Liquidity Facility J.P.
Morgan & Co., Inc.) (b)(c)
Macon-Bibb County Hosp. Auth. 1,455,000 1,455,000
Rev. (Med. Ctr. of Central
Georgia) 3.6%, LOC SunTrust
Bank of Atlanta, VRDN (b)
Marietta Hsg. Auth. 2,800,000 2,800,000
Multi-family Hsg. Rev. Rfdg.
(Wood Pointe Apts.) Series
1993, 3.5%, LOC First Union
Nat'l. Bank, North Carolina,
VRDN (b)
Metro. Atlanta Rapid Transit 1,080,000 1,080,000
Auth. Sales Tax Rev.
Participating VRDN Series
59, 3.55% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (b)(c)
Putnam County Poll. Cont. 2,600,000 2,600,000
Rev. Bonds (Pwr. Co. Plant
Proj.) Second Series 1997,
3.8% tender 1/13/00, CP mode
Savannah Econ. Dev. Auth. 1,300,000 1,300,000
Rev. Rfdg. (La Quinta Motor
Inns, Inc. Proj.) Series
1991, 3.65%, LOC Bank of
America Na, VRDN (b)
South Georgia Hosp. Auth. 11,000,000 11,000,000
Rev. (Alliance Cmnty. Hosp.
Proj.) Series 1999 A, 3.6%
(AMBAC Insured), VRDN (b)
59,505,000
HAWAII - 0.3%
Hawaii Gen. Oblig. 2,065,000 2,065,000
Participating VRDN Series PA
483, 3.57% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (b)(c)
IDAHO - 0.5%
Caribou County Poll. Cont. 1,500,000 1,500,000
Rev. Rfdg. (Monsanto Co.
Proj.) Series 1990, 3.5%,
VRDN (b)
Idaho TAN Series 1999, 4.25% 2,100,000 2,111,403
6/30/00
3,611,403
ILLINOIS - 10.1%
Chicago Gen. Oblig. Bonds 1,600,000 1,600,000
3.75%, tender 12/1/99
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
ILLINOIS - CONTINUED
Chicago Sales Tax Rev. $ 4,900,000 $ 4,900,000
Participating VRDN Series
FR/RI 24, 3.7% (Liquidity
Facility Bank of New York
NA) (b)(c)
Chicago School Reform Board
of Ed. Participating VRDN:
Series 1996 BB, 3.67% 3,400,000 3,400,000
(Liquidity Facility Bank of
America NA) (b)(c)
Series 1998 115, 3.55% 2,800,000 2,800,000
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(b)(c)
Chicago Tax Increment Alloc. 2,800,000 2,800,000
Rev. (Stockyards Southeast
Quad) Series 1996 B, 3.6%,
LOC Northern Trust Co.,
Chicago, VRDN (b)
Chicago Wtr. Rev. 1,800,000 1,800,000
Participating VRDN Series
1997 V, 3.6% (Liquidity
Facility First Union Nat'l.
Bank, North Carolina) (b)(c)
Dupage Wtr. Commission Rfdg. 1,100,000 1,100,000
Participating VRDN Series
97C1301, 3.54% (Liquidity
Facility Citibank, New York
NA) (b)(c)
Illinois Dev. Fin. Auth. Rev.:
(AMR Pooled Fing. Prog. 2,700,000 2,700,000
Proj.) Series A, 3.7%,
(Liquidity Facility Bank of
Nova Scotia) (Liquidity
Facility Banque Nationale de
Paris) VRDN (b)
(Local Govt. Prog. Proj.) 3,900,000 3,900,000
Series 1999 A, 3.6% (AMBAC
Insured), VRDN (b)
Illinois Health Facilities
Auth. Rev.:
Bonds (SSM Health Care Proj.)
Series 1998 B:
3.7% tender 3/1/00 (MBIA 3,000,000 3,000,000
Insured), CP mode
3.85% tender 1/24/00 (MBIA 1,000,000 1,000,000
Insured), CP mode
Participating VRDN Series PT 6,370,000 6,370,000
113, 3.57% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (b)(c)
(Little Co. of Mary Hosp. 19,995,000 19,995,000
Proj.) Series 1997 B, 3.55%
(MBIA Insured), VRDN (b)
(The Carle Foundation Proj.) 3,000,000 3,000,000
Series 1999, 3.55% (AMBAC
Insured), VRDN (b)
Rfdg. (Franciscan Eldercare & 1,200,000 1,200,000
Cmnty. Svcs. Proj.) Series
1996 C, 3.5%, LOC LaSalle
Nat'l. Bank, Chicago, VRDN
(b)
Illinois Reg'l. Trans. Auth.
Participating VRDN:
Series SGB 10, 3.57% 1,645,000 1,645,000
(Liquidity Facility Societe
Generale, France) (b)(c)
Series SGB 19, 3.57% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale, France) (b)(c)
Lombard Ind. Proj. Rev. Rfdg. 3,375,000 3,375,000
(B&H Partnership Proj.)
Series 1995, 3.9%, LOC
Comerica Bank, Detroit, VRDN
(b)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
ILLINOIS - CONTINUED
McCook Rev. (Saint Andrew $ 1,300,000 $ 1,300,000
Society) Series 1996 A,
3.65%, LOC Northern Trust
Co., Chicago, VRDN (b)
Schaumberg Ind. Dev. Rev. 1,420,000 1,420,000
Rfdg. (La Quinta Motor Inns,
Inc. Proj.) Series 1991,
3.65%, LOC Bank of America
Na, VRDN (b)
68,305,000
INDIANA - 5.1%
Fort Wayne Poll. Cont. Rev. 12,780,000 12,780,000
(Gen. Motors Corp. Proj.)
3.55%, VRDN (b)
Indianapolis Gas Util. Sys.
Rev.:
3.6% 11/12/99, CP 2,800,000 2,800,000
3.65% 1/27/00, CP 1,400,000 1,400,000
Richmond Econ. Dev. Rev. 8,100,000 8,100,000
(Friends Fellowship Cmnty.
Proj.) Series 1997, 3.55%,
LOC Bank One, Indiana NA,
VRDN (b)
South Bend Cmnty. School 1,100,000 1,100,612
Corp. TAN 3.5% 12/31/99
Sullivan Poll. Cont. Rev.
Bonds (Hoosier Energy Rural
Elec. Coop.):
Series 1985 L 1, 3.65% tender 1,000,000 1,000,000
1/28/00 (Nat'l. Rural Util.
Coop. Fin. Corp.
Guaranteed), CP mode
Series 1985 L 3, 3.55% tender 2,200,000 2,200,000
1/21/00 (Nat'l. Rural Util.
Coop. Fin. Corp.
Guaranteed), CP mode
Series 1985 L 5:
3.55% tender 1/26/00 (Nat'l. 1,700,000 1,700,000
Rural Util. Coop. Fin. Corp.
Guaranteed), CP mode
3.55% tender 1/28/00 (Nat'l. 1,100,000 1,100,000
Rural Util. Coop. Fin. Corp.
Guaranteed), CP mode
Series 1985 L 6, 3.55% tender 1,800,000 1,800,000
1/25/00 (Nat'l. Rural Util.
Coop. Fin. Corp.
Guaranteed), CP mode
33,980,612
KANSAS - 0.5%
La Cygne Envir. Impt. Rev. 2,500,000 2,500,000
Rfdg. (Kansas City Pwr. &
Lt. Co.) Series 1994, 3.6%,
VRDN (b)
Wichita Gen. Oblig. BAN 4% 1,000,000 1,001,750
2/24/00
3,501,750
KENTUCKY - 0.8%
Jefferson County Poll. Cont. 1,635,000 1,635,000
Rev. Bonds (Louisville Gas &
Elec. Co. Proj.) Series 1993
A, 3.65% tender 1/28/00, CP
mode
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
KENTUCKY - CONTINUED
Kentucky Asset Liability $ 1,000,000 $ 1,000,000
Commission Agcy. Fund Rev.
Bonds Series 1999, 3.7%
tender 12/10/99 (Liquidity
Facility Westdeutsche
Landesbank Girozentrale), CP
mode
Kentucky Asset Liability 1,500,000 1,501,685
Commission Gen. Fund Rev.
Bonds First Series, 3.5%
3/1/00
Trimble County Poll. Cont. 1,000,000 1,000,000
Rev. Bonds (Louisville Gas &
Elec. Co. Proj.) Series 1992
A, 3.8% tender 1/21/00, CP
mode
5,136,685
LOUISIANA - 2.1%
Calcasieu Parish Ind. Dev. 4,450,000 4,450,000
Board Poll. Cont. Rev. Rfdg.
(PPG Industries) Series
1992, 3.5%, VRDN (b)
Louisiana Pub. Facilities 10,000,000 10,000,000
Auth. Rev. Bonds (Christus
Health Proj.) Series B,
3.55% tender 3/1/00 (AMBAC
Insured), CP mode
14,450,000
MARYLAND - 1.8%
Baltimore County Metro. 7,000,000 7,000,000
District 3.55% 11/1/99
(Liquidity Facility
Westdeutsche Landesbank
Girozentrale), CP
Maryland Cmnty. Dev. 2,185,000 2,185,000
Administration Dept.
Participating VRDN Series
1997 P, 3.57% (Liquidity
Facility Caisse des Depots
et Consignations) (b)(c)
Montgomery County Hsg. 2,850,000 2,850,000
Opportunity Commission
Single Family Mtg. Rev.
Participating VRDN Series PA
40, 3.57% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (b)(c)
12,035,000
MASSACHUSETTS - 0.5%
Massachusetts Ind. Fin. Agcy. 1,700,000 1,700,000
Rev. Rfdg. (Showa Womens
Institute Boston, Inc. 1994
Proj.) 3.75%, VRDN (b)
Massachusetts Tpk. Auth. 1,925,000 1,925,000
Western Tpk. Rev.
Participating VRDN Series
1997 N, 3.65% (Liquidity
Facility Bank of America NA)
(b)(c)
3,625,000
MICHIGAN - 1.0%
Michigan Muni. Bond Auth.
Rev. RAN:
Series B1, 4.25% 8/25/00 1,600,000 1,608,164
Series B2, 4.25% 8/25/00, LOC 2,100,000 2,111,213
Morgan Guaranty Trust Co., NY
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MICHIGAN - CONTINUED
Wayne Charter County $ 1,500,000 $ 1,500,000
Participating VRDN Series SG
122, 3.57% (Liquidity
Facility Societe Generale,
France) (b)(c)
Wayne-Westland Cmnty. Schools 1,320,000 1,320,000
Participating VRDN Series
67, 3.55% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (b)(c)
6,539,377
MINNESOTA - 1.0%
Minnesota Gen. Oblig. 3,300,000 3,300,000
Participating VRDN Series
ROC 2994, 3.57% (Liquidity
Facility Commerzbank AG)
(b)(c)
Minnesota Hsg. Fin. Agcy. 1,900,000 1,900,000
Single Family Mtg.
Participating VRDN Series PT
114, 3.57% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (b)(c)
Minnetonka Multi-family Hsg. 1,300,000 1,300,000
Rev. Rfdg. (Cliffs at
Ridgedale Proj.) Series
1995, 3.6% (Fannie Mae
Guaranteed), VRDN (b)
6,500,000
MISSOURI - 0.2%
Missouri Envir. Impt. & 1,000,000 1,000,000
Energy Resources Auth. Poll.
Cont. Rev. Bonds (Union
Elec. Co. Proj.) Series 1985
A, 3.3% tender 1/27/00, LOC
UBS AG, CP mode
NEBRASKA - 0.9%
Nebraska Pub. Pwr. District 6,250,000 6,253,781
Rev. Bonds Series A, 4.5%
1/1/00
NEVADA - 0.4%
Nevada Gen. Oblig. 2,500,000 2,500,000
Participating VRDN Series
SGB 97 31, 3.57% (Liquidity
Facility Societe Generale,
France) (b)(c)
NEW HAMPSHIRE - 0.5%
New Hampshire Bus. Fin. Auth. 3,300,000 3,300,000
Poll. Cont. Rev. Bonds (New
England Pwr. Co. Proj.)
Series 1990 B, 3.75% tender
3/1/00, CP mode
NEW JERSEY - 0.6%
Woodbridge Township Gen. 4,200,000 4,214,954
Oblig. BAN 3.9% 7/28/00
NEW YORK - 0.6%
Long Island Pwr. Auth. New
York Elec. Sys. Rev.
Participating VRDN:
Series 1998 A, 3.57% 1,200,000 1,200,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(c)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
Long Island Pwr. Auth. New
York Elec. Sys. Rev.
Participating VRDN: -
continued
Series PA 420, 3.57% $ 1,200,000 $ 1,200,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(c)
Metro. Trans. Auth. New York 1,700,000 1,700,000
Trans. Facilities Rev.
Series CP1, 3.45% 1/13/00,
LOC ABN-AMRO Bank NV, CP
4,100,000
NORTH CAROLINA - 1.0%
North Carolina Med. Care 2,400,000 2,400,000
Commission Rev. 3.6%, LOC
Bank of America NA, VRDN (b)
North Carolina Muni. Pwr. 4,200,000 4,200,000
Agcy. #1 Catawba Elec. Rev.
3.7% 11/30/99, LOC Morgan
Guaranty Trust Co., NY, LOC
UBS AG, CP
6,600,000
NORTH DAKOTA - 0.1%
Oliver County Participating 600,000 600,000
VRDN Series 1998 12, 3.55%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(b)(c)
OHIO - 2.0%
Clinton County Hosp. Rev. 2,000,000 2,000,000
(Hosp. Cap., Inc. Pooled
Fing. Prog.) Series 1998,
3.6%, LOC Fifth Third Bank,
Cincinnati, VRDN (b)
Ohio Higher Edl. Facilities 8,200,000 8,200,000
Rev. (Pooled Fing. Prog.)
Series 1997, 3.55%, LOC
Fifth Third Bank,
Cincinnati, VRDN (b)
Ohio Pub. Facilities 3,000,000 3,033,962
Commission Higher Ed. Cap.
Facilities Bonds Series II
B, 5% 11/1/00 (FSA Insured)
13,233,962
OKLAHOMA - 0.6%
Oklahoma Dev. Fin. Auth. Rev. 4,200,000 4,200,000
(Hosp. Assoc. Pool Ln. Prog.
Proj.) Series 1999 A, 3.6%
(Cdc Fdg. Corp. Guaranteed),
VRDN (b)
PENNSYLVANIA - 4.3%
Allegheny County Hosp. Dev. 3,400,000 3,400,000
Auth. Rev. (St. Margaret
Mem. Hosp. Proj.) Series
1992, 3.6%, LOC Mellon Bank
NA, Pittsburgh, VRDN (b)
Beaver County Ind. Dev. Auth. 1,800,000 1,800,000
Poll. Cont. Rev. Bonds
(Duquesne Lt. Co. Proj.)
4.7% tender 11/18/99, CP mode
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
PENNSYLVANIA - CONTINUED
Berks County Ind. Dev. Auth. $ 475,000 $ 475,000
Manufacturing Facilities
Rev. (Construction Fasteners
Proj.) Series 1996 A, 3.6%,
LOC First Union Nat'l. Bank,
North Carolina, VRDN (b)
Dauphin County Gen. Auth. Rev.:
(All-Health Pooled Fing. 4,985,000 4,985,000
Prog.) Series 1997 B, 3.6%
(FSA Insured) (BPA Cr. Swiss
First Boston Bank), VRDN (b)
(School District Pooled Fing. 7,600,000 7,600,000
Prog.) 3.55% (AMBAC Insured)
(BPA Commerzbank AG), VRDN
(b)
North Pennsylvania Wtr. Auth. 1,030,000 1,030,000
Wtr. Rev. Participating VRDN
Series SGA 30, 3.55%
(Liquidity Facility Societe
Generale, France) (b)(c)
Pennsylvania 1,700,000 1,700,000
Intergovernmental Coop.
Auth. Spl. Tax Rev.
Participating VRDN Series
SG-16, 3.57% (Liquidity
Facility Societe Generale,
France) (b)(c)
Philadelphia Gen. Oblig. TRAN 1,650,000 1,657,920
Series A 1999- 2000, 4.25%
6/30/00
Philadelphia School District 4,800,000 4,816,913
TRAN Series A, 4% 6/30/00,
LOC First Union Nat'l. Bank,
North Carolina
Quakertown Hosp. Auth. Hosp. 1,400,000 1,400,000
Rev. (Pooled Fing. Prog.)
Series 1985-A, 3.6%, LOC PNC
Bank NA, VRDN (b)
28,864,833
SOUTH CAROLINA - 2.4%
Oconee County Poll. Cont. 1,500,000 1,500,000
Rev. Bonds (Duke Energy Co.
Proj.) Series A, 3.85%
tender 1/18/00, CP mode
South Carolina Edl. 5,475,000 5,475,000
Facilities Auth. (Claflin
College) Series 1997, 3.7%,
LOC Bank of America NA, VRDN
(b)
South Carolina Hsg. Fin. & 9,415,000 9,415,000
Hsg. Dev. Auth. Multi-family
Rev. Rfdg.
(Spartanburg-Oxford Proj.)
Series 1990 D, 3.65%
(Continental Casualty Co.
Guaranteed), VRDN (b)
16,390,000
TENNESSEE - 3.1%
Knox County Health & Ed. Hsg. 2,900,000 2,900,000
Facilities Board Rev.
(Pooled Hosp. Ln. Prog.)
Series 1999 A, 3.6%
(Liquidity Facility
Landesbank
Hessen-Thuringen), VRDN (b)
Memphis Gen. Oblig. 1,200,000 1,200,000
Participating VRDN Series
SGB 23, 3.57% (Liquidity
Facility Societe Generale,
France) (b)(c)
Sevier County Pub. Bldg. 1,205,000 1,205,000
Auth. Rev. Series 2D3, 3.45%
(AMBAC Insured), VRDN (b)
Shelby County Gen. Oblig.:
Participating VRDN Series SGB 2,600,000 2,600,000
21, 3.57% (Liquidity
Facility Societe Generale,
France) (b)(c)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
TENNESSEE - CONTINUED
Shelby County Gen. Oblig.: -
continued
TAN Series B, 4.25% 6/30/00 $ 9,700,000 $ 9,733,081
3.8% 1/19/00, CP 2,100,000 2,100,000
Tusculum Health Ed. & Hsg. 1,000,000 1,000,000
Facilities Rev. (Tusculum
College Proj.) Series 1998,
3.6%, LOC SunTrust Bank,
Nashville NA, VRDN (b)
20,738,081
TEXAS - 16.3%
Austin Combined Util. Sys.
Rev. Series A:
3.55% 11/1/99, LOC Morgan 1,000,000 1,000,000
Guaranty Trust Co., NY, CP
3.65% 11/1/99, LOC Morgan 2,600,000 2,600,000
Guaranty Trust Co., NY, CP
Austin Gen. Oblig. 1,100,000 1,100,000
Participating VRDN Series
1999 2, 3.57% (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (b)(c)
Austin Hsg. Fin. Corp. 1,000,000 1,000,000
Multi-family Hsg. Rev.
(Riverchase Proj.) Series
1985 A, 3.5%, LOC Household
Fin. Corp., VRDN (b)
Brazos Hbr. Ind. Dev. Corp. 1,500,000 1,500,000
Poll. Cont. Rev. Bonds
Series 1986, 3.8% tender
1/25/00, CP mode
Brazos River Hbr. Navigation 1,000,000 1,000,000
District Bonds (Dow Chemical
Co. Proj.) Series 1990, 3.5%
tender 11/17/99, CP mode
Brazos River Hbr. Navigation 4,000,000 4,000,000
District of Brasoria County
Rev. Bonds (Dow Chemical Co.
Proj.) Series 1991, 3.65%
tender 11/18/99, CP mode
Carroll Independent School 3,040,000 3,040,000
District Participating VRDN
Series PT 1120, 3.57%
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(c)
Coastal Wtr. Auth. 1,020,000 1,020,000
Participating VRDN Series 97
J, Class A 3.57% (Liquidity
Facility Caisse des Depots
et Consignations) (b)(c)
Colorado River Muni. Wtr. 3,161,000 3,161,000
District Rev. Participating
VRDN Series PA 187, 3.57%
(Liquidity Facility Merrill
Lynch & Co., Inc.) (b)(c)
Comal County Health 2,100,000 2,100,000
Facilities Dev. Rev.
(McKenna Memorial Health
Sys.) 3.55%, LOC Chase Bank
of Texas NA, VRDN (b)
Dallas Wtr. & Swr. Sys. Rev.
Series B:
3.7% 12/15/99, CP 2,184,000 2,184,000
3.7% 12/15/99, CP 2,310,000 2,310,000
Denton Util. Sys. Rev. Rfdg. 1,000,000 1,000,000
Participating VRDN Series
SGA 32, 3.55% (Liquidity
Facility Societe Generale,
France) (b)(c)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
TEXAS - CONTINUED
El Paso Ind. Dev. Auth. Rev. $ 825,000 $ 825,000
Rfdg. (La Quinta Motor Inns,
Inc. Proj.) Series 1991,
3.65%, LOC Bank of America
Na, VRDN (b)
Farmers Branch Ind. Dev. 1,300,000 1,300,000
Corp. Rev. Rfdg. (PPG Ind.,
Inc. Proj.) Series 1992,
3.5%, VRDN (b)
Greater East Texas Higher Ed. 1,000,000 1,000,000
Auth. Student Ln. Rev. Rfdg.
Bonds Series 1992 A, 3.8%,
tender 9/1/00, LOC Student
Ln. Marketing Assoc.
Harris County Gen. Oblig.:
Series A:
3.55% 1/31/00, CP 1,294,000 1,294,000
3.8% 1/25/00, CP 1,100,000 1,100,000
Series C, 3.55% 1/28/00, CP 1,500,000 1,500,000
Harris County Health
Facilities Dev. Corp. Spec.
Facilities Rev. (Texas Med.
Ctr. Proj.):
Series 1999 B, 3.55% (FSA 1,500,000 1,500,000
Insured), VRDN (b)
3.75% (MBIA Insured), VRDN (b) 1,000,000 1,000,000
Harris County Ind. Dev. Corp. 1,400,000 1,400,000
Ind. Dev. Rev. (Johann
Haltermann) Series 1996 A,
3.55%, LOC Chase Bank of
Texas NA, VRDN (b)
Houston Wtr. & Swr. Sys. Rev. 1,720,000 1,720,000
Participating VRDN Series RI
32, 3.7% (Liquidity Facility
Bank of New York NA) (b)(c)
Lower Colorado River Auth.
Rev.:
3.75% 1/31/00, CP 1,800,000 1,800,000
3.8% 1/31/00, CP 2,700,000 2,700,000
3.9% 1/31/00, CP 1,400,000 1,400,000
North Central Texas Health
Facilities Dev. Corp. Rev.
Bonds (Dallas Methodist
Hosp. Proj.) Series 1998:
3.55% tender 1/25/00 (AMBAC 9,000,000 9,000,000
Insured), CP mode
3.55% tender 1/31/00 (AMBAC 1,200,000 1,200,000
Insured), CP mode
Nueces River Ind. Dev. Auth. 1,000,000 1,000,000
Poll. Cont. Rev. Rfdg. Bonds
(San Miguel Elec. Coop.,
Inc. Proj.) Series 1984,
3.7% tender 11/9/99 (Nat'l.
Rural Util. Coop. Fin. Corp.
Guaranteed), CP mode
San Antonio Arpt. Sys. 8,805,000 8,805,000
Participating VRDN Series
96C4305, 3.54% (Liquidity
Facility Citibank, New York
NA) (b)(c)
San Antonio Elec. & Gas Rev.
Participating VRDN:
Series SG 101, 3.57% 3,400,000 3,400,000
(Liquidity Facility Societe
Generale, France) (b)(c)
Series SG 105, 3.57% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale, France) (b)(c)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
TEXAS - CONTINUED
Southwest Higher Ed. Auth. $ 1,900,000 $ 1,900,000
Rev. (Southern Methodist
Univ.) 3.55%, LOC Landesbank
Hessen-Thuringen, VRDN (b)
Texarkana Ind. Dev. Corp. 1,690,000 1,690,000
Ind. Dev. Rev. Rfdg. (La
Quinta Motor Inns, Inc.
Proj.) Series 1991, 3.65%,
LOC Bank of America Na, VRDN
(b)
Texas Gen. Oblig. TRAN Series 32,900,000 33,111,123
1999 A, 4.5% 8/31/00
Univ. of Texas Univ. Revs 2,900,000 2,900,000
Participating VRDN Series
1998 97, 3.55% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (b)(c)
109,560,123
UTAH - 3.2%
Intermountain Pwr. Agcy. Pwr.
Supply Rev.:
Bonds Series C, 6% 7/1/00 1,600,000 1,628,690
(MBIA Insured)
Series 1997 B2:
3.45% 1/27/00, CP 2,000,000 2,000,000
3.7% 11/9/99, CP 11,000,000 11,000,000
Series 1998 B5:
3.45% 1/27/00, CP 1,300,000 1,300,000
3.7% 11/9/99, CP 1,000,000 1,000,000
Provo City Hsg. Rev. 4,330,000 4,330,000
(Branbury Park Proj.) Series
1987 A, 3.55%, LOC Bank One,
Arizona NA, VRDN (b)
21,258,690
VERMONT - 0.5%
Vermont Edl. & Health Bldg. 1,500,000 1,500,000
Fin. Agcy. Rev. Bonds
(Middlebury College Proj.)
Series 1988 A, 3.1%, tender
11/1/99
Vermont Hsg. Fin. Agcy. 1,995,000 1,995,000
Single Family Hsg. Rev.
Bonds Series 10 D, 3.1%
4/28/00
3,495,000
VIRGINIA - 3.8%
Chesapeake Ind. Dev. Auth. 1,000,000 1,000,000
Poll. Cont. Rev. Bonds
(Virginia Elec. & Pwr. Co.
Proj.) Series 1985, 3.7%
tender 1/19/00, CP mode
Chesterfield County Ind. Dev.
Auth. Poll. Cont. Rev. Bonds
(Virginia Elec. & Pwr. Co.
Proj.):
Series 1987 A, 3.5% tender 1,000,000 1,000,000
11/1/99, CP mode
Series B, 3.8% tender 2/1/00, 2,335,000 2,335,000
CP mode
Fairfax County Gen. Oblig. 1,000,000 1,000,000
Participating VRDN Series PA
149, 3.57% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (b)(c)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
VIRGINIA - CONTINUED
Louisa Ind. Dev. Auth. Poll.
Cont. Rev. Bonds (Virginia
Elec. & Pwr. Co. Proj.):
Series 1984, 3.7% tender $ 1,000,000 $ 1,000,000
12/20/99, CP mode
Series 1985, 3.8% tender 2,000,000 2,000,000
2/1/00, CP mode
Richmond Pub. Util. Rev. 10,000,000 10,000,000
Series 1998 A, 3.65%, VRDN
(b)
Roanoke Ind. Dev. Auth. Hosp. 5,750,000 5,750,000
Rev. (Carilion Health Sys.)
Series 1997-B, 3.6%
(Liquidity Facility Bank of
America NA), VRDN (b)
Virginia Beach Ind. Dev. 1,475,000 1,475,000
Auth. Rev. Rfdg. (La Quinta
Motor Inns, Inc. Proj.)
Series 1993, 3.65%, LOC Bank
of America Na, VRDN (b)
25,560,000
WASHINGTON - 5.9%
Port of Seattle Rev. Series A:
3.55% 11/1/99, LOC Bank of 1,000,000 1,000,000
America NA, CP
3.7% 12/10/99, LOC Bank of 2,235,000 2,235,000
America NA, CP
Seattle Ltd. Tax:
Bonds Series D, 3.7% tender 2,400,000 2,400,000
4/3/00 (Liquidity Facility
Cr. Communale De Belgique),
CP mode
Participating VRDN Series SGB 5,000,000 5,000,000
12, 3.57% (Liquidity
Facility Societe Generale,
France) (b)(c)
Washington Participating VRDN 5,395,000 5,395,000
Series 1993 C Class A, 3.54%
(Liquidity Facility
Citibank, New York NA) (b)(c)
Washington Gen. Oblig.:
Bonds Series R 1998 B, 4% 2,500,000 2,502,744
1/1/00
Participating VRDN:
Series 984703, 3.54% 6,600,000 6,600,000
(Liquidity Facility
Citibank, New York NA) (b)(c)
Series SG 37, 3.57% 5,500,000 5,500,000
(Liquidity Facility Societe
Generale, France) (b)(c)
Series SGA 35, 3.55% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale, France) (b)(c)
Series SGA 36, 3.55% 2,260,000 2,260,000
(Liquidity Facility Societe
Generale, France) (b)(c)
Series SGB 11, 3.57% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale, France) (b)(c)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
WASHINGTON - CONTINUED
Washington Gen. Oblig.: -
continued
Participating VRDN:
Series SGB 9, 3.57% $ 900,000 $ 900,000
(Liquidity Facility Societe
Generale, France) (b)(c)
Washington Pub. Pwr. Supply 4,100,000 4,100,000
Sys. Rev. Participating VRDN
Series PT 80, 3.62%
(Liquidity Facility
Bayerische Hypo-und
Vereinsbank AG) (b)(c)
39,892,744
WISCONSIN - 1.4%
Milwaukee County 5,500,000 5,500,000
Participating VRDN Series
FR/RI A37, 3.7% (Liquidity
Facility Bank of New York
NA) (b)(c)
Wisconsin Gen. Oblig. Series 1,600,000 1,600,000
1998 B, 3.55% 3/15/00, CP
Wisconsin Trans. Rev. Series 2,581,000 2,581,000
1997, 3.55% 11/1/99, CP
9,681,000
WYOMING - 0.0%
Wyoming Cmnty. Dev. Auth. 280,000 280,000
Participating VRDN Series PT
112, 3.57% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (b)(c)
MULTIPLE STATES - 0.4%
Stephens Equity Trust I 2,782,035 2,782,035
Participating VRDN Series
1996, 3.67%, LOC Bayerische
Hypo-und Vereinsbank AG
(b)(c)
TOTAL INVESTMENT PORTFOLIO - 678,812,091
100.8%
NET OTHER ASSETS - (0.8)% (5,700,956)
NET ASSETS - 100% $ 673,111,135
Total Cost for Income Tax Purposes $ 678,812,356
</TABLE>
Prior to this report, certain information related to portfolio
holdings was stated as a percentage of the fund's investments.
SECURITY TYPE ABBREVIATIONS
BAN - BOND ANTICIPATION NOTE
CP - COMMERCIAL PAPER
RAN - REVENUE ANTICIPATION NOTE
TAN - TAX ANTICIPATION NOTE
TRAN - TAX AND REVENUE
ANTICIPATION NOTE
VRDN - VARIABLE RATE DEMAND NOTE
LEGEND
(a) Security purchased on a delayed delivery or when-issued basis.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(c) Provides evidence of ownership in one or more underlying municipal
bonds.
INCOME TAX INFORMATION
At October 31, 1999, the fund had a capital loss carryforward of
approximately $96,000 of which $65,000, $3,000 and $28,000 will expire
on October 31, 2004, 2005 and 2007, respectively.
During the fiscal year ended October 31, 1999, 100% of the fund's
income dividends was free from federal income tax, and 0% of the
fund's income dividends was subject to the federal alternative minimum
tax (unaudited).
TAX-EXEMPT FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1999
ASSETS
Investment in securities, at $ 678,812,091
value - See accompanying
schedule
Cash 48,803
Receivable for fund shares 4,481,027
sold
Interest receivable 4,056,536
TOTAL ASSETS 687,398,457
LIABILITIES
Payable for investments $ 9,500,000
purchased on a delayed
delivery basis
Payable for fund shares 4,228,528
redeemed
Distributions payable 140,183
Accrued management fee 71,223
Distribution fees payable 177,589
Other payables and accrued 169,799
expenses
TOTAL LIABILITIES 14,287,322
NET ASSETS $ 673,111,135
Net Assets consist of:
Paid in capital $ 673,206,410
Accumulated net realized gain (95,305)
(loss) on investments
Unrealized gain from 30
accretion of discount
NET ASSETS $ 673,111,135
DAILY MONEY CLASS: NET ASSET $1.00
VALUE, offering price and
redemption price per share
($503,073,297 (divided by)
503,144,278 shares)
CAPITAL RESERVES CLASS: NET $1.00
ASSET VALUE, offering price
and redemption price per
share ($170,037,838 (divided
by) 170,061,829 shares)
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1999
INTEREST INCOME $ 22,420,966
Expenses
Management fee $ 1,717,511
Transfer agent fees 1,506,415
Distribution fees 2,175,102
Accounting fees and expenses 120,455
Non-interested trustees' 2,226
compensation
Custodian fees and expenses 40,566
Registration fees 287,417
Audit 31,901
Miscellaneous 33,758
Total expenses before 5,915,351
reductions
Expense reductions (1,003,057) 4,912,294
NET INTEREST INCOME 17,508,672
NET REALIZED GAIN (LOSS) ON (27,371)
INVESTMENTS
NET INCREASE IN NET ASSETS $ 17,481,301
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31, 1999 YEAR ENDED OCTOBER 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 17,508,672 $ 19,827,079
Net realized gain (loss) (27,371) 55,913
Increase (decrease) in net - 30
unrealized gain from
accretion of discount
NET INCREASE (DECREASE) IN 17,481,301 19,883,022
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (17,508,672) (19,827,079)
from net interest income
Share transactions - net (31,698,257) 59,546,704
increase (decrease)
TOTAL INCREASE (DECREASE) (31,725,628) 59,602,647
IN NET ASSETS
NET ASSETS
Beginning of period 704,836,763 645,234,116
End of period $ 673,111,135 $ 704,836,763
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
YEARS ENDED OCTOBER 31, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
of period
Income from Investment
Operations
Net interest income .026 .030 .031 .030 .033
Less Distributions
From net interest income (.026) (.030) (.031) (.030) (.033)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 2.65% 3.03% 3.10% 3.02% 3.36%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 503 $ 519 $ 469 $ 500 $ 559
(in millions)
Ratio of expenses to average .65% B .65% B .65% B .65% B .65% B
net assets
Ratio of net interest income 2.61% 2.99% 3.06% 2.98% 3.31%
to average net assets
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
FINANCIAL HIGHLIGHTS - CAPITAL RESERVES CLASS,038
YEARS ENDED OCTOBER 31, 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000000
period
Income from Investment
Operations
Net interest income .024 .027 .000078
Less Distributions
From net interest income (.024) (.027) (.000078)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000000
TOTAL RETURN B, C 2.40% 2.78% .01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 170 $ 186 $ 177
millions)
Ratio of expenses to average .90% D .90% D .90% A, D
net assets
Ratio of net interest income 2.37% 2.73% 2.81% A
to average net assets
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D FMR AGREED TO REIMBURSE A PORTION OF THE CLASS' EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE CLASS' EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
E FOR OCTOBER 31, 1997 (COMMENCEMENT OF SALE OF CAPITAL RESERVES CLASS
SHARES)
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Treasury Fund (Treasury), Prime Fund (Prime) and Tax-Exempt Fund
(Tax-Exempt) (collectively referred to as "the funds") are funds of
Newbury Street 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 Delaware
business trust. Each Fund is authorized to issue an unlimited number
of shares.
Prime and Tax-Exempt each offer two classes of shares, Daily Money
Class and Capital Reserves Class whereas Treasury offers four classes
of shares, Daily Money Class, Capital Reserves Class, Advisor B Class,
and Advisor C Class, each of which has equal rights as to assets and
voting privileges. Each class has exclusive voting rights with respect
to matters that affect that class. Class B shares will automatically
convert to Daily Money Class shares after a holding period of seven
years from the initial date of purchase. Interest income, realized and
unrealized capital gains and losses, the common expenses of the fund,
and certain fund-level expense reductions, if any, are allocated on a
pro rata basis to each class based on the relative net assets of each
class to the total net assets of the fund. Each class of shares
differs in its respective distribution, transfer agent, and certain
other class-specific fees, expenses, and expense reductions.
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. 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, 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."
INTEREST INCOME. Interest income, which includes amortization of
premium and accretion of discount, is accrued as earned. For
Tax-Exempt, accretion of discount represents unrealized gain until
realized at the time of a security disposition or maturity.
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. Under a Deferred Compensation Plan (the
Plan) non-interested Trustees of the Prime Fund must defer receipt of
a portion of, and may elect to defer receipt of an additional portion
of, their annual compensation. Deferred amounts are treated as though
equivalent dollar amounts had been invested in shares of the fund or
are invested in a cross-section of other Fidelity money market funds.
Deferred amounts remain in the fund until distributed in accordance
with the Plan.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), certain funds, along
with other affiliated entities of Fidelity Management & Research
Company (FMR), may transfer uninvested cash balances into one or more
joint trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the funds, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the funds' investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
WHEN-ISSUED SECURITIES. Each fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place after the
customary settlement period for that security. The price of the
underlying securities is fixed at the time the transaction is
negotiated. The market values of the securities purchased on a
when-issued or forward commitment basis are identified as such in each
applicable fund's schedule of investments. Each fund may receive
compensation for interest forgone in the purchase of a when-issued
security. With respect to purchase commitments, each fund identifies
securities as segregated in its records with a value at least equal to
the amount of the commitment. Losses may arise due to changes in the
market value of the underlying securities, if the counterparty does
not perform under the contract, or if the issuer does not issue the
securities due to political, economic, or other factors.
RESTRICTED SECURITIES. Certain funds are 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
2. OPERATING POLICIES - CONTINUED
RESTRICTED SECURITIES - CONTINUED
prompt sale at an acceptable price may be difficult. Information
regarding restricted securities is included under the caption "Other
Information" at the end of each applicable fund's schedule of
investments.
3. JOINT TRADING ACCOUNT.
At the end of the period, Treasury had 20% or more of its total
investments in repurchase agreements through a joint trading account.
These repurchase agreements were with entities whose creditworthiness
has been reviewed and found satisfactory by FMR. The investments in
repurchase agreements through the joint trading account are summarized
as follows:
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF JOINT TRADING
DATED JULY 2, 1999, DUE JANUARY 10, 2000 AT 5.18%
Number of dealers or banks 1
Maximum amount with one dealer or bank . 100.0%
Aggregate principal amount of agreements $500,000,000
Aggregate maturity amount of agreements $513,813,334
Aggregate market value of transferred assets $511,471,086
Coupon rates of transferred assets 0.00% to 11.63%
Maturity dates of transferred assets 1/31/00 to 2/15/26
DATED JULY 2, 1999, DUE JANUARY 12, 2000 AT 5.17%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $500,000,000
Aggregate maturity amount of agreements $513,930,278
Aggregate market value of transferred assets $511,191,184
Coupon rates of transferred assets 0.00% to 12.00%
Maturity dates of transferred assets 1/31/00 to 11/15/28
</TABLE>
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
<TABLE>
<CAPTION>
<S> <C>
DATED JULY 6, 1999, DUE JANUARY 12, 2000 AT 5.18%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $300,000,000
Aggregate maturity amount of agreements $308,201,666
Aggregate market value of transferred assets $306,138,132
Coupon rates of transferred assets 0.00% to 14.25%
Maturity dates of transferred assets 1/27/00 to 8/15/29
DATED JULY 15, 1999, DUE JANUARY 18, 2000 AT 5.12%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $300,000,000
Aggregate maturity amount of agreements $307,978,667
Aggregate market value of transferred assets $306,138,132
Coupon rates of transferred assets 0.00% to 14.25%
Maturity dates of transferred assets 1/27/00 to 8/15/29
DATED AUGUST 10, 1999, DUE JANUARY 24, 2000 AT 5.37%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $300,000,000
Aggregate maturity amount of agreements $307,473,250
Aggregate market value of transferred assets $306,954,931
Coupon rates of transferred assets 0.00% to 14.00%
Maturity dates of transferred assets 12/16/99 to 2/15/29
DATED AUGUST 17, 1999, DUE JANUARY 18, 2000 AT 5.32%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $500,000,000
Aggregate maturity amount of agreements $510,566,112
Aggregate market value of transferred assets $510,002,936
Coupon rates of transferred assets 4.00% to 7.75%
Maturity dates of transferred assets 9/30/00 to 8/15/04
</TABLE>
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
<TABLE>
<CAPTION>
<S> <C>
DATED OCTOBER 6, 1999, DUE JANUARY 18, 2000 AT 5.35%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $400,000,000
Aggregate maturity amount of agreements $406,182,222
Aggregate market value of transferred assets $409,395,498
Coupon rates of transferred assets 5.25% to 14.00%
Maturity dates of transferred assets 2/29/00 to 8/15/29
DATED OCTOBER 7, 1999, DUE FEBRUARY 1, 2000 AT 5.34%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $500,000,000
Aggregate maturity amount of agreements $508,677,500
Aggregate market value of transferred assets $510,608,264
Coupon rates of transferred assets 4.00% to 14.00%
Maturity dates of transferred assets 12/31/99 to 11/15/28
DATED OCTOBER 8, 1999, DUE FEBRUARY 8, 2000 AT 5.35%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $500,000,000
Aggregate maturity amount of agreements $509,139,583
Aggregate market value of transferred assets $511,596,505
Coupon rates of transferred assets 4.00% to 7.88%
Maturity dates of transferred assets 10/31/00 to 10/15/06
DATED OCTOBER 21, 1999, DUE NOVEMBER 10, 1999 AT 5.14%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100.0%
Aggregate principal amount of agreements $1,000,000,000
Aggregate maturity amount of agreements $1,002,855,556
Aggregate market value of transferred assets $1,023,183,105
Coupon rates of transferred assets 0.00% to 14.00%
Maturity dates of transferred assets 12/16/99 to 2/15/29
</TABLE>
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
<TABLE>
<CAPTION>
<S> <C>
DATED OCTOBER 29, 1999, DUE NOVEMBER 1, 1999 AT 5.17%
Number of dealers or banks 8
Maximum amount with one dealer or bank 53.2%
Aggregate principal amount of agreements $929,791,000
Aggregate maturity amount of agreements $930,191,377
Aggregate market value of transferred assets $948,913,200
Coupon rates of transferred assets 0.00% to 14.00%
Maturity dates of transferred assets 11/4/99 to 8/15/29
DATED OCTOBER 29, 1999, DUE NOVEMBER 1, 1999 AT 5.24%
Number of dealers or banks 10
Maximum amount with one dealer or bank 28.6%
Aggregate principal amount of agreements $5,240,648,000
Aggregate maturity amount of agreements $5,242,934,632
Aggregate market value of transferred assets $5,352,075,250
Coupon rates of transferred assets 0.00% to 14.00%
Maturity dates of transferred assets 11/4/99 to 2/15/29
</TABLE>
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a fee
that is computed daily at an annual rate of 0.25% of the fund's
average net assets.
SUB-ADVISER FEE. As each fund's 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 fees are paid prior to any voluntary expense reimbursements which
may be in effect.
DISTRIBUTION AND SERVICE PLAN. In accordance with Rule 12b-1 of the
1940 Act, the Board of Trustees have adopted separate distribution
plans with respect to each class of shares (collectively referred to
as "the Plans"). Under certain of the Plans, the class pays Fidelity
Distributors Corporation (FDC), an affiliate of FMR, a distribution
and service fee. A portion of this fee may be reallowed to securities
dealers, banks and other financial institutions for the distribution
of each class of shares and providing shareholder support
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN - CONTINUED
services. For the period, this fee was based on the following annual
rates of the average net assets of each applicable class:
DAILY MONEY CLASS .25%
CAPITAL RESERVES CLASS .50%
ADVISOR B CLASS 1.00%*
ADVISOR C CLASS 1.00%*
* .75% REPRESENTS A DISTRIBUTION FEE AND .25% REPRESENTS A SHAREHOLDER
SERVICE FEE.
For the period, each class paid FDC the following amounts, a portion
of which was retained by FDC:
PAID TO FDC RETAINED BY FDC
TREASURY - DAILY MONEY CLASS $ 3,273,024 $ 77,237
TREASURY - CAPITAL RESERVES 3,954,276 -
CLASS
TREASURY - ADVISOR B CLASS 912,764 685,405
TREASURY - ADVISOR C CLASS 342,207 210,182
$ 8,482,271 $ 972,824
PRIME - DAILY MONEY CLASS $ 9,651,089 $ 182,477
PRIME - CAPITAL RESERVES CLASS 13,681,029 -
$ 23,332,118 $ 182,477
TAX-EXEMPT - DAILY MONEY CLASS $ 1,259,920 $ 81,625
TAX-EXEMPT - CAPITAL RESERVES 915,182 -
CLASS
$ 2,175,102 $ 81,625
SALES LOAD. FDC receives the proceeds of contingent deferred sales
charges levied on Treasury - Advisor B Class share redemptions
occurring within six years of purchase and Treasury - Advisor C Class
share redemptions occurring within one year of purchase. Contingent
deferred sales charges are based on declining rates ranging from 5% to
0% for Treasury - Advisor B Class and 1% for Advisor C Class, of the
lesser of the cost of shares at the initial date of purchase or the
net asset value of the redeemed shares, excluding any reinvested
dividends and capital gains. When Advisor B Class shares and Advisor C
Class shares are initially sold, FDC pays commissions from its own
resources to dealers through which the sales are made. For the period,
FDC received contingent deferred sales charges of $821,639 and $61,367
for Treasury - Advisor B Class and Treasury Advisor C Class,
respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT AND ACCOUNTING FEES. Fidelity Investments Institutional
Operations Company, Inc. (FIIOC), an affiliate of FMR, is the
transfer, dividend disbursing and shareholder servicing agent for the
Treasury Fund and Prime Fund. Effective June 21, 1999 Citibank,
N.A.(Citibank) replaced UMB Bank n.a. as the custodian, transfer agent
and shareholder servicing agent for the Tax-Exempt Fund. The Bank has
entered into a sub-contract with FIIOC to perform the activities
associated with the Tax-Exempt Fund's transfer and shareholder
servicing agent functions. FIIOC receives 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TRANSFER AGENT AMOUNT % OF AVERAGE NET ASSETS
TREASURY - DAILY MONEY CLASS FIIOC $ 2,987,485 .23
TREASURY - CAPITAL RESERVES FIIOC 1,872,810 .24
CLASS
TREASURY - ADVISOR B CLASS FIIOC 211,661 .23
TREASURY - ADVISOR C CLASS FIIOC 84,749 .25
$ 5,156,705
PRIME - DAILY MONEY CLASS FIIOC $ 8,888,709 .23
PRIME - CAPITAL RESERVES CLASS FIIOC 6,112,836 .22
$ 15,001,545
TAX-EXEMPT - DAILY MONEY CLASS Citibank $ 1,104,233 .22
TAX-EXEMPT - CAPITAL RESERVES Citibank 402,182 .22
CLASS
$ 1,506,415
</TABLE>
ACCOUNTING FEES. Fidelity Service Company, Inc., an affiliate of FMR,
maintains each fund's accounting records. The fee is based on the
level of average net assets for the month plus out-of-pocket expenses.
MONEY MARKET INSURANCE. Pursuant to an Exemptive Order issued by the
SEC, each fund, along with other money market funds advised by FMR or
its affiliates, has entered into insurance agreements with FIDFUNDS
Mutual Limited (FIDFUNDS), an affiliated mutual insurance company,
effective January 1, 1999. FIDFUNDS provides limited coverage for
certain loss events including issuer default as to payment of
principal or interest and bankruptcy or insolvency of a credit
enhancement provider. The insurance does not cover losses resulting
from changes in interest rates, ratings downgrades or other market
conditions. Each fund may be subject to a special assessment of up to
approximately 2.5 times the fund's annual gross premium if covered
losses exceed certain levels. During the period, Treasury, Prime and
Tax-Exempt paid premiums of $10,691, $247,374 and $32,936,
respectively, to FIDFUNDS, all of which were reimbursed by FMR.
5. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse operating expenses (excluding
interest, taxes, brokerage commissions and extraordinary expenses, if
any) above the following annual rates or range of annual rates of
average net assets for each of the following classes:
FMR EXPENSE LIMITATIONS REIMBURSEMENT
TREASURY - DAILY MONEY CLASS 0.65% $ 1,416,793
TREASURY - CAPITAL RESERVES 0.90% 901,986
CLASS
TREASURY - ADVISOR B CLASS 1.40% 100,079
TREASURY - ADVISOR C CLASS 1.40% 42,696
$ 2,461,554
PRIME - DAILY MONEY CLASS 0.65% $ 4,510,881
PRIME - CAPITAL RESERVES CLASS 0.90% 3,008,773
$ 7,519,654
TAX-EXEMPT - DAILY MONEY CLASS 0.65% $ 727,018
TAX-EXEMPT - CAPITAL RESERVES 0.90% 265,213
CLASS
$ 992,231
In addition, each fund has entered into an arrangement with its
custodian whereby credits realized as a result of uninvested cash
balances were used to reduce a portion of expenses. During the period,
custodian fees were reduced by $10,826 for Tax-Exempt under the
custodian arrangement.
Effective January 1, 2000, each class' expense limitation will be
changed to the following rates of average net assets:
FMR EXPENSE LIMITATIONS
TREASURY - DAILY MONEY CLASS 0.70%
TREASURY - CAPITAL RESERVES 0.95%
CLASS
TREASURY - ADVISOR B CLASS 1.45%
TREASURY - ADVISOR C CLASS 1.45%
PRIME - DAILY MONEY CLASS 0.70%
PRIME - CAPITAL RESERVES CLASS 0.95%
TAX-EXEMPT - DAILY MONEY CLASS 0.70%
TAX-EXEMPT - CAPITAL RESERVES 0.95%
CLASS
6. BENEFICIAL INTEREST.
At the end of the period, two shareholders were record owners of more
than 10% of the total outstanding shares of Treasury, totaling 31%.
7. DISTRIBUTIONS TO SHAREHOLDERS.
Distributions to shareholders of each class for the periods were as
follows:
<TABLE>
<CAPTION>
<S> <C> <C>
FROM NET INTEREST INCOME YEAR ENDED OCTOBER 31, 1999 YEAR ENDED OCTOBER 31, 1998 A
TREASURY - DAILY MONEY CLASS $ 56,266,008 $ 61,024,076
TREASURY - CAPITAL RESERVES 32,147,540 14,650,449
CLASS
TREASURY - ADVISOR B CLASS 3,285,526 1,800,162
TREASURY - ADVISOR C CLASS 1,235,946 304,271
TOTAL $ 92,935,020 $ 77,778,958
PRIME - DAILY MONEY CLASS $ 176,390,936 $ 150,820,165
PRIME - CAPITAL RESERVES CLASS 117,725,026 96,562,493
TOTAL $ 294,115,962 $ 247,382,658
TAX-EXEMPT - DAILY MONEY CLASS $ 13,167,682 $ 14,919,060
TAX-EXEMPT - CAPITAL RESERVES 4,340,990 4,908,019
CLASS
TOTAL $ 17,508,672 $ 19,827,079
</TABLE>
A DISTRIBUTIONS FOR TREASURY - ADVISOR C CLASS ARE FOR THE PERIOD
NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1998.
8. SHARE TRANSACTIONS.
Share transactions for each class of shares for the periods are as
follows:
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED OCTOBER 31, 1999 YEAR ENDED OCTOBER 31, 1998 A
TREASURY - DAILY MONEY CLASS $ 5,722,936,674 $ 6,183,446,431
Shares sold
Reinvestment of distributions 49,125,095 51,096,751
from net interest income
Shares redeemed (5,697,775,047) (6,257,475,931)
Net increase (decrease) $ 74,286,722 $ (22,932,749)
TREASURY - CAPITAL RESERVES $ 3,416,749,618 $ 1,993,751,534
CLASS Shares sold
Reinvestment of distributions 10,369,848 11,646,305
from net interest income
Shares redeemed (2,957,403,279) (1,790,313,607)
$ 469,716,187 $ 215,084,232
TREASURY - ADVISOR B CLASS $ 318,202,032 $ 154,354,745
Shares sold
Reinvestment of distributions 2,915,643 1,654,170
from net interest income
Shares redeemed (240,560,462) (125,863,931)
Net increase (decrease) $ 80,557,213 $ 30,144,984
TREASURY - ADVISOR C CLASS $ 353,971,617 $ 77,740,029
Shares sold
Reinvestment of distributions 1,010,792 247,692
from net interest income
Shares redeemed (308,828,882) (62,085,301)
Net increase (decrease) $ 46,153,527 $ 15,902,420
PRIME - DAILY MONEY CLASS $ 20,996,467,981 $ 17,264,760,055
Shares sold
Reinvestment of distributions 164,591,586 140,399,598
from net interest income
Shares redeemed (20,222,203,985) (16,695,204,676)
Net increase (decrease) $ 938,855,582 $ 709,954,977
PRIME - CAPITAL RESERVES $ 23,390,518,755 $ 45,041,695,815
CLASS Shares sold
Reinvestment of distributions 109,332,314 290,194,746
from net interest income
Shares redeemed (22,831,489,240) (44,839,598,846)
$ 668,361,829 $ 492,291,715
TAX-EXEMPT - DAILY MONEY $ 1,751,898,670 $ 2,154,461,152
CLASS Shares sold
Reinvestment of distributions 11,633,194 13,276,012
from net interest income
Shares redeemed (1,778,973,508) (2,117,850,043)
Net increase (decrease) $ (15,441,644) $ 49,887,121
TAX-EXEMPT - CAPITAL RESERVES $ 897,724,620 $ 828,007,955
CLASS Shares sold
Reinvestment of distributions 4,146,977 4,306,467
from net interest income
Shares redeemed (918,128,210) (822,654,839)
$ (16,256,613) $ 9,659,583
</TABLE>
A SHARE TRANSACTIONS FOR TREASURY - ADVISOR C CLASS ARE FOR THE PERIOD
NOVEMBER 3, 1997 (COMMENCEMENT OF SALE OF SHARES) TO OCTOBER 31, 1998.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Newbury Street Trust and the Shareholders of
Treasury Fund, Prime Fund and Tax-Exempt Fund:
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
Treasury Fund, Prime Fund and Tax-Exempt Fund (funds of Newbury
Street Trust) at October 31, 1999, and the results of their
operations, the changes in their net assets and the financial
highlights for the periods indicated, in conformity with generally
accepted accounting principles. These financial statements and
financial highlights (hereafter referred to as "financial statements")
are the responsibility of the Newbury Street Trust 's management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at October 31, 1999 by correspondence with the custodian
and brokers, provide a reasonable basis for the opinion expressed
above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
December 8, 1999
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
Fidelity Investments
Money Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Fred L. Henning, Jr., Vice President
Boyce I. Greer, Vice President
John J. Todd, Vice President
Robert A. Litterst, Vice President
Scott A. Orr, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Stanley N. Griffith, Assistant Vice President
John H. Costello, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
Ned C. Lautenbach
* INDEPENDENT TRUSTEES
DMFI-ANN-1299 88217
GENERAL DISTRIBUTOR
Fidelity Distributions Corporation (FDC)
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENTS
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA (Prime Fund &
Treasury Fund)
Citibank, N.A.
New York, NY (Tax-Exempt Fund)
CUSTODIAN
The Bank of New York
New York, NY (Prime Fund &
Treasury Fund)
Citibank, N.A.
New York, NY (Tax-Exempt Fund)
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com