SUPPLEMENT TO THE FIDELITY CASH MANAGEMENT FUNDS'
CAPITAL RESERVES CLASS
DECEMBER 30, 1998 PROSPECTUS
The following information replaces similar information found under the
heading "Earning Dividends" in the "Dividends and Capital Gains
Distributions" section beginning on page 18:
Capital Reserves Class shares purchased by a wire order prior to 4:00
p.m. Eastern time for Prime Fund and Treasury Fund or prior to 12:00
noon Eastern time for Tax-Exempt Fund, with receipt of the wire in
proper form before the close of the Federal Reserve Wire System on
that day, generally begin to earn dividends on the day of purchase.
Capital Reserves Class shares purchased by all other orders begin to
earn dividends on the first business day following the day of
purchase.
However, on any day that the principal bond markets close early (as
recommended by the Bond Market Association) or the New York Fed closes
early, a class may advance the time on that day by which wire purchase
orders must be placed so that shares earn dividends on the day of
purchase. In addition, on any day that the principal bond markets do
not open (as recommended by the Bond Market Association) or the New
York Fed does not open, shares begin to earn dividends on the first
business day following the day of purchase.
Capital Reserves Class shares redeemed by a wire order prior to 4:00
p.m. Eastern time for Prime Fund and Treasury Fund or prior to 12:00
noon Eastern time for Tax-Exempt Fund, generally earn dividends
through the day prior to the day of redemption.
Capital Reserves Class shares redeemed by all other orders earn
dividends until, but not including, the next business day following
the day of redemption.
However, on any day that the principal bond markets close early (as
recommended by the Bond Market Association) or the New York Fed closes
early, a class may set a time after which shares redeemed by wire
order earn dividends until, but not including, the next business day
following the day of redemption. On any day that the principal bond
markets do not open (as recommended by the Bond Market Association) or
the New York Fed does not open, shares earn dividends until, but not
including, the next business day following the day of redemption.
SUPPLEMENT TO THE FIDELITY CASH MANAGEMENT FUNDS'
DAILY MONEY CLASS
DECEMBER 30, 1998 PROSPECTUS
The following information replaces similar information found under the
heading "Earning Dividends" in the "Dividends and Capital Gains
Distributions" section beginning on page 21:
Daily Money Class shares purchased by a wire order prior to 4:00 p.m.
Eastern time for Prime Fund and Treasury Fund or prior to 12:00 noon
Eastern time for Tax-Exempt Fund, with receipt of the wire in proper
form before the close of the Federal Reserve Wire System on that day,
generally begin to earn dividends on the day of purchase.
Daily Money Class shares purchased by all other orders begin to earn
dividends on the first business day following the day of purchase.
However, on any day that the principal bond markets close early (as
recommended by the Bond Market Association) or the New York Fed closes
early, a class may advance the time on that day by which wire purchase
orders must be placed so that shares earn dividends on the day of
purchase. In addition, on any day that the principal bond markets do
not open (as recommended by the Bond Market Association) or the New
York Fed does not open, shares begin to earn dividends on the first
business day following the day of purchase.
Daily Money Class shares redeemed by a wire order prior to 4:00 p.m.
Eastern time for Prime Fund and Treasury Fund or prior to 12:00 noon
Eastern time for Tax-Exempt Fund, generally earn dividends through the
day prior to the day of redemption.
Daily Money Class shares redeemed by all other orders earn dividends
until, but not including, the next business day following the day of
redemption.
However, on any day that the principal bond markets close early (as
recommended by the Bond Market Association) or the New York Fed closes
early, a class may set a time after which shares redeemed by wire
order earn dividends until, but not including, the next business day
following the day of redemption. On any day that the principal bond
markets do not open (as recommended by the Bond Market Association) or
the New York Fed does not open, shares earn dividends until, but not
including, the next business day following the day of redemption.
SUPPLEMENT TO THE FIDELITY CASH
MANAGEMENT FUNDS'
DECEMBER 30, 1998
STATEMENT OF ADDITIONAL INFORMATION
THE FOLLOWING INFORMATION REPLACES THE SECOND AND SIXTH PARAGRAPHS
FOUND IN THE "TRANSFER AND SERVICE AGENT AGREEMENTS" SECTION BEGINNING
ON PAGE 28.
Each class of Tax-Exempt Fund has entered into a transfer agent
agreement with Citibank, N.A., which is located at 111 Wall Street,
New York, New York. Under the terms of the agreements, Citibank, N.A.
provides transfer agency, dividend disbursing, and shareholder
services for each class of the fund. Citibank, N.A. in turn has
entered into a sub-transfer agent agreement with FIIOC. Under the
terms of the sub-agreement, FIIOC performs all processing activities
associated with providing these services for each class of the fund
and receives all related transfer agency fees paid to Citibank,
N.A.
Tax-Exempt Fund has also entered into a service agent agreement
with Citibank, N.A. Under the terms of the agreement, Citibank, N.A.
provides pricing and bookkeeping services for the fund. Citibank, N.A.
in turn has entered into a sub-service agent agreement with FSC. Under
the terms of the sub-agreement, FSC performs all processing activities
associated with providing these services, including calculating the
NAV and dividends for each class of the fund and maintaining the
fund's portfolio and general accounting records, and receives all
related pricing and bookkeeping fees paid to Citibank, N.A.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DESCRIPTION OF THE TRUST" SECTION BEGINNING ON PAGE 29.
CUSTODIAN. The Bank of New York, 110 Washington Street, New
York, New York, is custodian of the assets of Prime Fund and Treasury
Fund (the taxable funds). Citibank, N.A., 111 Wall Street, New York,
New York, is custodian of the assets of the Tax-Exempt Fund. Each
custodian is responsible for the safekeeping of a fund's assets and
the appointment of any subcustodian banks and clearing agencies. The
Chase Manhattan Bank, headquartered in New York, also may serve as
special purpose custodian of certain assets of the taxable funds in
connection with repurchase agreement transactions.
THE FOLLOWING INFORMATION REPLACES AND SUPPLEMENTS SIMILAR
INFORMATION FOUND IN THE "TRUSTEES AND OFFICERS" SECTION BEGINNING ON
PAGE 20.
*EDWARD C. JOHNSON 3d (68), Trustee and President, is Chairman,
Chief Executive Officer and a Director of FMR Corp.; a Director and
Chairman of the Board and of the Executive Committee of FMR; Chairman
and a Director of Fidelity Investments Money Management, Inc. (1998),
Fidelity Management & Research (U.K.) Inc., and Fidelity Management &
Research (Far East) Inc.; and a Director of FDC. Abigail Johnson,
Member of the Advisory Board of Newbury Street Trust, is Mr. Johnson's
daughter.
ABIGAIL P. JOHNSON (37), Member of the Advisory Board of Newbury
Street Trust (1999), is Vice President of certain Equity Funds (1997),
and is a Director of FMR Corp. (1994). Before assuming her current
responsibilities, Ms. Johnson managed a number of Fidelity funds.
Edward C. Johnson 3d, Trustee and President of the Funds, is Ms.
Johnson's father.
The following table sets forth information describing the
compensation of each Trustee and Member of the Advisory Board of each
fund for his or her services for the fiscal year ended October 31,
1998, or calendar year ended December 31, 1997, as applicable.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMPENSATION TABLE
Trustees and Members of the Aggregate Compensation from Aggregate Compensation from Aggregate Compensation from
Advisory Board Prime FundB,C,D Treasury FundB Tax-Exempt FundB
J. Gary Burkhead** $ 0 $ 0 $ 0
Ralph F. Cox $ 1,787 $ 576 $ 245
Phyllis Burke Davis $ 1,774 $ 573 $ 244
Robert M. Gates*** $ 1,799 $ 581 $ 247
Edward C. Johnson 3d** $ 0 $ 0 $ 0
Abigail P. Johnson** $ 0 $ 0 $ 0
E. Bradley Jones $ 1,786 $ 576 $ 245
Donald J. Kirk $ 1,823 $ 588 $ 250
Peter S. Lynch** $ 0 $ 0 $ 0
William O. McCoy**** $ 1,799 $ 581 $ 247
Gerald C. McDonough $ 2,211 $ 714 $ 304
Marvin L. Mann $ 1,775 $ 572 $ 243
Robert C. Pozen** $ 0 $ 0 $ 0
Thomas R. Williams $ 1,799 $ 580 $ 247
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Trustees and Members of the Total Compensation from the
Advisory Board Fund Complex*,A
J. Gary Burkhead** $ 0
Ralph F. Cox $ 214,500
Phyllis Burke Davis $ 210,000
Robert M. Gates*** $ 176,000
Edward C. Johnson 3d** $ 0
Abigail P. Johnson** $ 0
E. Bradley Jones $ 211,500
Donald J. Kirk $ 211,500
Peter S. Lynch** $ 0
William O. McCoy**** $ 214,500
Gerald C. McDonough $ 264,500
Marvin L. Mann $ 214,500
Robert C. Pozen** $ 0
Thomas R. Williams $ 214,500
</TABLE>
* Information is for the calendar year ended December 31, 1997 for
230 funds in the complex.
** Interested Trustees of the funds, Mr. Burkhead and Ms. Johnson
are compensated by FMR.
*** Mr. Gates was elected to the Board of Trustees of Newbury
Street Trust on May 9, 1997
**** Mr. McCoy was elected to the Board of Trustees of Newbury
Street on May 9, 1997
A Compensation figures include cash, amounts required to be
deferred, and may include amounts deferred at the election of
Trustees. For the calendar year ended December 31, 1997, the Trustees
accrued required deferred compensation from the funds as follows:
Ralph F. Cox, $75,000; Phyllis Burke Davis, $75,000; Robert M. Gates,
$62,500; E. Bradley Jones, $75,000; Donald J. Kirk, $75,000; William
O. McCoy, $75,000; Gerald C. McDonough, $87,500; Marvin L. Mann,
$75,000; and Thomas R. Williams, $75,000. Certain of the
non-interested Trustees elected voluntarily to defer a portion of
their compensation as follows: Ralph F. Cox, $53,699; Marvin L. Mann,
$53,699; and Thomas R. Williams, $62,462.
B Compensation figures include cash, and may include amounts
required to be deferred and amounts deferred at the election of
Trustees.
C The following amounts are required to be deferred by each
non-interested Trustee: Ralph F. Cox, $806; Phyllis Burke Davis, $806;
Robert M. Gates, $806; E. Bradley Jones, $806; Donald J. Kirk, $806;
William O. McCoy, $806; Gerald C. McDonough, $940; Marvin L. Mann,
$806; and Thomas R. Williams, $806.
D Certain of the non-interested Trustees' aggregate compensation
from a fund includes accrued voluntary deferred compensation as
follows: Thomas R. Williams, $684, Prime Fund.
THE FOLLOWING NON-FUNDAMENTAL LIMITATIONS REPLACE LIMITATIONS (IV) AND
(VII) FOR EACH OF PRIME FUND AND TREASURY FUND FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGES 2 AND
3, RESPECTIVELY.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by lending money (up to 15% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser. (This
limitation does not apply to purchases of debt securities or to
repurchase agreements.)
THE FOLLOWING NON-FUNDAMENTAL LIMITATION REPLACES LIMITATION (II) FOR
TAX-EXEMPT FUND FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 4.
(ii) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (5)).
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION" SECTION ON
PAGE 19.
CLASS B AND CLASS C SHARES ONLY
The Class B or Class C CDSC will not apply to the redemption of
shares:
1. For disability or death, provided that the shares are sold within
one year following the death or the initial determination of
disability;
2. That are permitted without penalty at age 70 1/2 pursuant to the
Internal Revenue Code from retirement plans or accounts (other than of
shares purchased on or after February 11, 1999 for traditional IRAs,
Roth IRAs and Rollover IRAs);
3. For disability, payment of death benefits, or minimum required
distributions starting at age 70 1/2 from Traditional IRAs, Roth IRAs
and Rollover IRAs purchased on or after February 11, 1999;
4. Through the Fidelity Advisor Systematic Withdrawal Program; or
5. (Applicable to Class C only) From an employee benefit plan (as
defined in the Employee Retirement Income Security Act), 403(b)
program or plan covering a sole-proprietor (formerly Keogh/H.R. 10
plan).
A waiver form must accompany these transactions.
If the Trustees determine that existing conditions make cash payments
undesirable, redemption payments may be made in whole or in part in
securities or other property, valued for this purpose as they are
valued in computing each class's NAV. Shareholders receiving
securities or other property on redemption may realize a gain or loss
for tax purposes, and will incur any costs of sale, as well as the
associated inconveniences.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"DISTRIBUTION SERVICES" SECTION ON PAGE 27.
Currently and except as provided below, for the first year of
investment, FDC retains the full amount of 12b-1 (distribution) fees
paid by Class C as compensation for providing services intended to
result in the sale of Class C shares and retains the full-amount of
12b-1 (service) fees paid by Class C for providing shareholder support
services. Normally, after the first year of investment, FDC may
reallow up to the full amount of 12b-1 (distribution) fees paid by
Class C to intermediaries, such as banks, broker-dealers and other
service-providers for providing services intended to result in the
sale of Class C shares, and may reallow up to the full amount of 12b-1
(service) fees paid by Class C to intermediaries for providing
shareholder support services. For purchases of Class C shares made for
an employee benefit plan, 403(b) program or plan covering a
sole-proprietor (formerly Keogh/H.R. 10 plan) or through reinvestment
of dividends or capital gain distributions, during the first year of
investment and thereafter, FDC may reallow up to the full amount of
12b-1 (distribution) fees paid by such Class C shares to
intermediaries for providing services intended to result in the sale
of Class C shares and may reallow up to the full amount of 12b-1
(service) fees paid by such Class C shares to intermediaries for
providing shareholder support services.
