FIDELITY(registered trademark)
CASH MANAGEMENT
FUNDS
TREASURY FUND
PRIME FUND
TAX-EXEMPT FUND
SEMIANNUAL REPORT
APRIL 30, 2000
(2_FIDELITY_LOGOS)(registered trademark)\
CONTENTS
SCHEDULES OF INVESTMENTS &
FINANCIAL STATEMENTS
TREASURY FUND 3
PRIME FUND 12
TAX-EXEMPT FUND 26
NOTES TO THE FINANCIAL 45
STATEMENTS
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 BY
INVESTING IN MUNICIPAL MONEY MARKET SECURITIES.
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 APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -
24.9%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
U.S. TREASURY BILLS - 7.4%
6/22/00 5.67% $ 25,000,000 $ 24,800,667
6/29/00 5.57 45,000,000 44,600,152
6/29/00 5.65 20,000,000 19,819,722
7/13/00 5.55 25,000,000 24,726,250
10/5/00 6.00 30,000,000 29,238,332
10/12/00 5.95 10,000,000 9,740,789
10/12/00 5.96 10,000,000 9,740,561
11/9/00 6.05 20,000,000 19,385,600
182,052,073
U.S. TREASURY NOTES - 17.5%
5/15/00 5.50 35,000,000 35,010,693
5/15/00 5.73 20,000,000 20,003,753
5/31/00 5.12 10,000,000 10,007,414
5/31/00 5.55 10,000,000 10,004,809
7/31/00 5.27 25,000,000 25,045,295
7/31/00 5.67 25,000,000 24,969,802
7/31/00 5.68 10,000,000 9,987,695
7/31/00 5.99 49,000,000 48,912,910
7/31/00 6.01 25,000,000 24,954,549
8/15/00 6.05 25,000,000 24,563,981
8/15/00 6.06 90,000,000 89,960,706
8/31/00 5.42 10,000,000 9,986,468
8/31/00 5.43 10,000,000 9,987,466
9/30/00 5.43 15,000,000 14,937,409
11/30/00 6.15 30,000,000 29,717,288
2/15/01 6.25 25,000,000 23,804,199
2/15/01 6.32 15,000,000 14,275,669
426,130,106
TOTAL U.S. TREASURY 608,182,179
OBLIGATIONS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
REPURCHASE AGREEMENTS - 69.0%
MATURITY AMOUNT VALUE (NOTE 1)
In a joint trading account
(U.S. Treasury Obligations)
dated:
4/7/00 due 5/16/00 At 5.95% $ 100,644,583 $ 100,000,000
4/18/00 due 6/1/00 At 6.01% 100,731,910 100,000,000
(a)
4/28/00 due 5/1/00 At:
5.71% 49,554,561 49,531,000
5.77% 1,435,689,602 1,435,000,000
TOTAL REPURCHASE AGREEMENTS 1,684,531,000
TOTAL INVESTMENT PORTFOLIO - 2,292,713,179
93.9%
NET OTHER ASSETS - 6.1% 147,679,414
NET ASSETS - 100% $ 2,440,392,593
Total Cost for Income Tax Purposes $ 2,292,713,179
</TABLE>
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.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 2,292,713,179
value (including repurchase
agreements of
$1,684,531,000) - See
accompanying schedule
Cash 98
Receivable for investments 150,000,000
sold
Receivable for fund shares 21,346,262
sold
Interest receivable 11,312,558
TOTAL ASSETS 2,475,372,097
LIABILITIES
Payable for fund shares $ 29,372,198
redeemed
Distributions payable 3,825,627
Accrued management fee 404,241
Distribution fees payable 846,755
Other payables and accrued 530,683
expenses
TOTAL LIABILITIES 34,979,504
NET ASSETS $ 2,440,392,593
Net Assets consist of:
Paid in capital $ 2,440,719,111
Accumulated net realized gain (326,518)
(loss) on investments
NET ASSETS $ 2,440,392,593
CALCULATION OF MAXIMUM $1.00
OFFERING PRICE DAILY MONEY
CLASS: NET ASSET VALUE,
offering price and
redemption price per share
($1,224,254,022 (divided by)
1,224,391,818 shares)
CAPITAL RESERVES CLASS: NET $1.00
ASSET VALUE, offering price
and redemption price per
share ($1,031,234,468
(divided by) 1,031,350,542
shares)
ADVISOR B CLASS: NET ASSET $1.00
VALUE and offering price per
share ($116,397,864
(divided by) 116,410,967
shares) A
ADVISOR C CLASS: NET ASSET $1.00
VALUE and offering price per
share ($68,506,239
(divided by) 68,513,948
shares) A
A REDEMPTION PRICE PER SHARE IS EQUAL TO NET ASSET VALUE LESS ANY
APPLICABLE CONTINGENT DEFERRED SALES CHARGE.
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INTEREST INCOME $ 71,372,901
EXPENSES
Management fee $ 3,183,749
Transfer agent fees 2,883,735
Distribution fees 5,136,397
Accounting fees and expenses 115,453
Non-interested trustees' 4,262
compensation
Custodian fees and expenses 7,293
Registration fees 183,459
Audit 16,515
Legal 5,684
Miscellaneous 2,624
Total expenses before 11,539,171
reductions
Expense reductions (888,175) 10,650,996
NET INTEREST INCOME 60,721,905
NET REALIZED GAIN (LOSS) ON 120,971
INVESTMENTS
NET INCREASE IN NET ASSETS $ 60,842,876
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
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STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
2000 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 60,721,905 $ 92,935,020
Net realized gain (loss) 120,971 (56,252)
NET INCREASE (DECREASE) IN 60,842,876 92,878,768
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (60,721,905) (92,935,020)
from net interest income
Share transactions - net (63,382,943) 670,713,649
increase (decrease)
TOTAL INCREASE (DECREASE) (63,261,972) 670,657,397
IN NET ASSETS
NET ASSETS
Beginning of period 2,503,654,565 1,832,997,168
End of period $ 2,440,392,593 $ 2,503,654,565
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1999 1998 1997 1996E 1996F
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 .024 .043 .049 .049 .012 .049
Less Distributions
From net interest income (.024) (.043) (.049) (.049) (.012) (.049)
Net asset value, end of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
TOTAL RETURN B, C 2.47% 4.38% 5.04% 4.97% 1.19% 5.06%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,224 $ 1,335 $ 1,261 $ 1,284 $ 1,801 $ 1,801
(in millions)
Ratio of expenses to average .68% A, D .65% D .65%D .65%D .65% A, D .65% D
net assets
Ratio of net interest income 4.91% A 4.30% 4.93% 4.88% 4.66% A 4.94%
to average net assets
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
YEARS ENDED OCTOBER 31,
1995F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000
period
Income from Investment
Operations
Net interest income .049
Less Distributions
From net interest income (.049)
Net asset value, end of $ 1.000
period
TOTAL RETURN B, C 5.02%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,828
(in millions)
Ratio of expenses to average .65%D
net assets
Ratio of net interest income 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 YEAR ENDED JULY 31
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CAPITAL RESERVES CLASS
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000000
period
Income from Investment
Operations
Net interest income .023 .040 .047 .000134
Less Distributions
From net interest income (.023) (.040) (.047) (.000134)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000000
TOTAL RETURN B, C 2.35% 4.12% 4.78% .01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,031 $ 950 $ 480 $ 265
(in millions)
Ratio of expenses to average .93% A, D .90% D .90% D .90% A, D
net assets
Ratio of net interest income 4.68% A 4.06% 4.67% 4.93% A
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 FOR OCTOBER 31, 1997 (COMMENCEMENT OF SALE OF CAPITAL RESERVES CLASS
SHARES)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - ADVISOR B CLASS
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .021 .035 .042 .041 .010
Less Distributions
From net interest income (.021) (.035) (.042) (.041) (.010)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B, C 2.09% 3.61% 4.26% 4.20% 1.01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 116 $ 157 $ 76 $ 46 $ 20
(in millions)
Ratio of expenses to average 1.43% A, D 1.40% D 1.40% D 1.39% D 1.35% A, D
net assets
Ratio of net interest income 4.16% A 3.60% 4.16% 4.24% 3.96% A
to average net assets
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
FINANCIAL HIGHLIGHTS - ADVISOR B CLASS
YEARS ENDED OCTOBER 31,
1996 F 1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .043 .042
Less Distributions
From net interest income (.043) (.042)
Net asset value, end of period $ 1.000 $ 1.000
TOTAL RETURN B, C 4.33% 4.28%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 40 $ 3
(in millions)
Ratio of expenses to average 1.35% D 1.35% D
net assets
Ratio of net interest income 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 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 YEAR ENDED JULY 31
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL HIGHLIGHTS - ADVISOR C CLASS
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .021 .035 .041
Less Distributions
From net interest income (.021) (.035) (.041)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B, C 2.09% 3.61% 4.22%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 69 $ 62 $ 16
millions)
Ratio of expenses to average 1.43% A, D 1.40% D 1.40% A, D
net assets
Ratio of net interest income 4.21% A 3.61% 4.24% A
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 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 APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CERTIFICATES OF DEPOSIT - 33.6%
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
DOMESTIC CERTIFICATES OF
DEPOSIT - 3.6%
American Express Centurion Bank
5/16/00 6.05% $ 50,000,000 $ 50,000,000
Citibank NA, New York
5/24/00 6.07 50,000,000 50,000,000
5/25/00 6.07 50,000,000 50,000,000
First Union National Bank,
North Carolina
5/18/00 6.00 25,000,000 25,000,000
11/21/00 6.48 25,000,000 25,000,000
Harris Trust & Savings Bank,
Chicago
5/12/00 6.05 100,000,000 100,000,000
300,000,000
LONDON BRANCH, EURODOLLAR,
FOREIGN BANKS - 12.5%
Abbey National Treasury
Services PLC
8/15/00 6.27 85,000,000 85,000,000
11/9/00 6.50 25,000,000 25,000,000
Barclays Bank PLC
5/4/00 6.09 75,000,000 75,000,000
5/8/00 6.01 50,000,000 50,000,048
5/8/00 6.09 150,000,000 150,000,000
7/28/00 5.80 25,000,000 25,000,000
Bayerische Hypo-und
Vereinsbank AG
5/17/00 6.06 50,000,000 50,000,000
6/13/00 6.10 75,000,000 75,000,000
6/27/00 6.22 60,000,000 60,000,000
11/1/00 6.70 55,000,000 55,000,000
12/11/00 6.50 50,000,000 50,000,000
Halifax PLC
6/19/00 6.06 100,000,000 100,000,000
6/30/00 6.10 50,000,000 50,000,000
ING Bank NV
6/28/00 6.11 40,000,000 40,000,000
9/25/00 6.39 50,000,000 50,000,988
11/8/00 6.51 40,000,000 40,002,022
RaboBank Nederland Coop.
Central
12/18/00 6.52 30,000,000 30,000,000
Societe Generale
12/18/00 6.54 40,000,000 40,000,000
1,050,003,058
CERTIFICATES OF DEPOSIT -
CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
NEW YORK BRANCH, YANKEE
DOLLAR, FOREIGN BANKS - 17.5%
Barclays Bank PLC
5/1/00 6.14% (b) $ 25,000,000 $ 24,999,558
5/24/00 6.08 45,000,000 45,000,000
6/14/00 5.66 50,000,000 49,997,111
Bayerische Hypo-und
Vereinsbank AG
5/18/00 6.04 75,000,000 75,001,786
Canadian Imperial Bank of
Commerce
5/19/00 6.06 50,000,000 50,000,000
6/20/00 6.19 70,000,000 70,000,000
Credit Communale de Belgique
5/25/00 6.08 100,000,000 100,000,000
Deutsche Bank AG
5/10/00 6.06 (b) 45,000,000 44,979,752
5/16/00 6.02 75,000,000 75,000,000
2/5/01 6.75 50,000,000 49,979,988
Landesbank Hessen-Thuringen
7/3/00 6.28 (b) 200,000,000 199,923,944
Lloyds Bank PLC
7/17/00 5.70 15,000,000 14,998,484
Norddeutsche Landesbank
Girozentrale
2/8/01 6.75 25,000,000 24,990,805
RaboBank Nederland Coop.
Central
7/12/00 5.75 50,000,000 49,995,276
Royal Bank of Canada
5/15/00 6.06 (b) 55,000,000 54,969,434
5/2/01 7.00 25,000,000 24,995,267
5/3/01 7.10 25,000,000 24,992,907
Royal Bank of Scotland PLC
5/8/00 6.08 75,000,000 75,000,000
5/22/00 6.00 50,000,000 50,000,000
Societe Generale
5/9/00 6.11 (b) 55,000,000 54,976,416
5/19/00 6.08 (b) 26,000,000 25,997,367
5/29/00 6.18 (b) 24,000,000 23,987,537
Svenska Handelsbanken AB
5/5/00 6.01 50,000,000 50,000,000
UBS AG
5/18/00 5.35 25,000,000 24,999,328
7/5/00 5.80 25,000,000 24,998,296
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
UBS AG - continued
12/7/00 6.45% $ 25,000,000 $ 24,949,051
5/1/01 7.00 130,000,000 129,975,386
1,464,707,693
TOTAL CERTIFICATES OF DEPOSIT 2,814,710,751
COMMERCIAL PAPER - 41.3%
Aspen Funding Corp.
6/26/00 6.12 35,000,000 34,673,714
9/18/00 6.35 50,000,000 48,804,167
Bank of America Corp.
9/11/00 6.30 50,000,000 48,873,194
Caisse des Depots et
Consignations
5/4/00 6.00 50,000,000 49,975,375
5/5/00 6.00 50,000,000 49,967,167
CBA Finance, Inc.
5/4/00 6.02 50,000,000 49,975,292
5/24/00 5.97 49,300,000 49,117,316
Citibank Credit Card Master
Trust I (Dakota Certificate
Program)
5/8/00 6.03 50,000,000 49,941,958
5/9/00 6.06 15,000,000 14,980,000
5/11/00 6.06 6,000,000 5,990,033
5/11/00 6.11 70,000,000 69,881,972
5/22/00 6.06 26,250,000 26,158,431
6/5/00 6.07 40,000,000 39,767,444
Corporate Receivables Corp.
5/17/00 6.09 100,000,000 99,731,111
Cregem North America, Inc.
11/22/00 6.44 35,000,000 33,774,271
CXC, Inc.
5/11/00 5.98 20,000,000 19,967,167
5/19/00 6.10 25,000,000 24,924,625
Delaware Funding Corp.
5/18/00 6.07 25,358,000 25,285,554
Deutsche Bank Financial, Inc.
5/17/00 6.07 200,000,000 199,464,000
5/31/00 6.03 50,000,000 49,752,500
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Dexia CLF Finance Co.
5/2/00 6.01% $ 35,000,000 $ 34,994,244
5/2/00 6.10 50,000,000 49,991,528
Edison Asset Securitization LLC
5/24/00 6.09 55,819,000 55,603,244
5/25/00 6.07 45,000,000 44,819,100
Falcon Asset Securitization
Corp.
5/12/00 6.10 30,000,000 29,944,450
5/15/00 6.05 43,999,000 43,895,822
5/15/00 6.12 30,000,000 29,929,067
5/16/00 6.10 20,000,000 19,949,500
5/18/00 6.06 26,310,000 26,235,082
6/7/00 6.16 64,605,000 64,198,635
Ford Motor Credit Co.
5/9/00 6.05 100,000,000 99,866,222
GE Capital International
Funding, Inc.
5/10/00 6.08 54,986,000 54,902,971
6/20/00 6.20 30,000,000 29,745,417
General Electric Capital Corp.
5/11/00 6.09 50,000,000 49,915,972
General Electric Capital
Services, Inc.
5/8/00 6.09 100,000,000 99,882,361
General Motors Acceptance Corp.
5/11/00 6.09 100,000,000 99,831,944
Goldman Sachs Group, Inc.
5/15/00 6.00 35,000,000 34,919,558
Kitty Hawk Funding Corp.
5/26/00 6.12 14,318,000 14,257,447
6/5/00 6.29 50,000,000 49,696,181
6/12/00 6.16 15,157,000 15,049,663
6/16/00 6.22 11,155,000 11,067,625
8/11/00 6.27 10,000,000 9,827,733
8/15/00 6.27 10,775,000 10,582,104
9/20/00 6.41 10,000,000 9,755,050
Lower Colorado River Auth.
Tax Rev.
6/5/00 6.08 30,000,000 30,000,000
Merrill Lynch & Co., Inc.
5/22/00 6.02 50,000,000 49,827,042
Morgan Stanley Dean Witter &
Co.
5/1/00 6.06 50,000,000 50,000,000
5/26/00 6.04 25,000,000 24,896,701
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
National Rural Utility Coop.
Finance Corp.
9/13/00 6.30% $ 25,000,000 $ 24,428,125
Nationwide Building Society
5/19/00 6.06 39,000,000 38,882,415
New Center Asset Trust
5/8/00 6.13 50,000,000 49,940,889
Newport Funding Corp.
5/16/00 6.07 43,916,000 43,805,478
Northern Rock PLC
6/6/00 6.18 1,000,000 993,860
Park Avenue Receivables Corp.
5/19/00 6.07 30,779,000 30,686,047
Preferred Receivables Funding
Corp.
5/12/00 6.06 50,000,000 49,907,875
5/16/00 6.06 110,662,000 110,383,962
5/22/00 6.15 14,000,000 13,950,265
5/30/00 6.23 44,593,000 44,370,283
RaboBank Nederland Coop.
Central
5/26/00 6.07 100,000,000 99,580,556
6/22/00 6.10 50,000,000 49,568,111
Salomon Smith Barney
Holdings, Inc.
6/2/00 6.16 50,000,000 49,728,000
Societe Generale NA
5/22/00 6.00 50,000,000 49,828,500
8/3/00 6.25 40,000,000 39,367,067
Svenska Handelsbanken, Inc.
5/25/00 6.02 25,000,000 24,901,667
Three Rivers Funding Corp.
5/11/00 6.07 50,000,000 49,916,111
5/15/00 6.10 68,106,000 67,945,232
Triple-A One Funding Corp.
5/9/00 6.06 37,765,000 37,714,647
5/25/00 6.12 25,616,000 25,511,999
UBS Finance, Inc.
5/9/00 6.08 150,000,000 149,798,333
Variable Funding Capital Corp.
5/12/00 6.07 25,000,000 24,953,861
Westdeutsche Landesbank
Girozentrale
5/24/00 6.04 75,000,000 74,714,896
Windmill Funding Corp.
5/9/00 6.06 25,000,000 24,966,667
COMMERCIAL PAPER - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Windmill Funding Corp. -
continued
5/10/00 6.06% $ 50,000,000 $ 49,924,625
5/11/00 6.06 50,000,000 49,916,250
5/16/00 6.07 20,000,000 19,949,667
5/24/00 6.11 25,000,000 24,902,889
TOTAL COMMERCIAL PAPER 3,455,128,231
FEDERAL AGENCIES - 3.3%
FANNIE MAE - 0.8%
Agency Coupons - 0.8%
5/23/00 5.97 (b) 70,000,000 69,993,918
FEDERAL HOME LOAN BANK - 1.6%
Agency Coupons - 1.6%
7/5/00 6.13 (b) 135,000,000 134,960,429
FREDDIE MAC - 0.9%
Discount Notes - 0.9%
2/1/01 6.57 52,000,000 49,544,213
2/7/01 6.50 25,000,000 23,805,417
73,349,630
TOTAL FEDERAL AGENCIES 278,303,977
BANK NOTES - 8.1%
Bank of America NA
5/18/00 6.00 50,000,000 50,000,000
5/30/00 6.00 25,000,000 25,000,000
6/21/00 6.10 50,000,000 50,000,000
Bank One NA, Chicago
5/26/00 6.00 50,000,000 50,000,000
5/30/00 6.00 25,000,000 25,000,000
7/19/00 6.15 25,000,000 25,000,000
7/24/00 6.27 (b) 40,000,000 39,982,880
Fifth Third Bank, Cincinnati
5/8/00 6.05 200,000,000 199,999,999
First Union National Bank,
North Carolina
5/24/00 6.12 (b) 50,000,000 50,000,000
7/5/00 6.38 (b) 40,000,000 40,000,000
BANK NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
Fleet National Bank
5/1/00 6.21% (b) $ 25,000,000 $ 24,997,607
US Bank NA
5/22/00 6.10 (b) 100,000,000 99,989,010
TOTAL BANK NOTES 679,969,496
MEDIUM-TERM NOTES - 6.3%
CIESCO LP
5/17/00 6.11 (b) 85,000,000 84,996,473
CIT Group, Inc.
5/1/00 6.20 (b) 30,000,000 29,997,512
5/1/00 6.30 (b) 55,000,000 54,979,909
GE Life & Annuity Assurance Co.
5/1/00 6.24 (b)(c) 80,000,000 80,000,000
General Electric Capital Corp.
5/3/00 6.04 (b) 30,000,000 30,000,000
General Motors Acceptance
Corp. Mortgage Credit
5/2/00 6.20 145,000,000 144,975,142
Ikon Receivables LLC
10/16/00 6.04 18,109,065 18,109,065
Merrill Lynch & Co., Inc.
5/3/00 6.10 (b) 40,000,000 39,996,307
Morgan Stanley Dean Witter &
Co.
6/30/00 6.30 (b) 50,000,000 49,997,318
TOTAL MEDIUM-TERM NOTES 533,051,726
SHORT-TERM NOTES - 3.3%
Jackson National Life
Insurance Co.
5/1/00 6.45 (b)(c) 25,000,000 25,000,000
Monumental Life Insurance Co.
5/1/00 6.27 (b)(c) 18,000,000 18,000,000
5/1/00 6.30 (b)(c) 20,000,000 20,000,000
New York Life Insurance Co.
6/1/00 6.22 (b)(c) 17,000,000 17,000,000
7/3/00 6.41 (b)(c) 15,000,000 15,000,000
RACERS Series 1999 16MM,
5/2/00 6.15 (a)(b) 33,000,000 33,000,000
SHORT-TERM NOTES - CONTINUED
DUE DATE ANNUALIZED YIELD AT TIME OF PRINCIPAL AMOUNT VALUE (NOTE 1)
PURCHASE
SMM Trust Series 1999 I,
5/26/00 6.11% (a)(b) $ 12,000,000 $ 12,000,000
Strategic Money Market Trust
Series 1999 A6,
7/13/00 6.40 (a)(b) 60,000,000 60,000,000
Strategic Money Market Trust
Series 2000 B,
6/13/00 6.15 (a)(b) 30,000,000 30,000,000
Transamerica Occidental Life
Insurance
5/30/00 6.56 (b)(c) 40,000,000 40,000,000
TOTAL SHORT-TERM NOTES 270,000,000
TIME DEPOSITS - 3.3%
Abbey National Treasury
Services PLC
5/17/00 6.06 75,000,000 75,000,000
Amsouth Bank NA, Birmingham
5/1/00 6.09 200,000,000 200,000,000
TOTAL TIME DEPOSITS 275,000,000
REPURCHASE AGREEMENTS - 6.1%
MATURITY AMOUNT
In a joint trading account $ 113,006,729 112,953,000
(U.S. Treasury Obligations)
dated 4/28/00 due 5/1/00 At
5.71%
With:
Bank of America NA At 6.14%, 200,102,333 200,000,000
dated 4/28/00 due 5/1/00:
(Commercial Paper
Obligations) (Principal
Amount $200,000,000) 0% -
6.48%, 5/1/00 - 11/3/00
Salomon Smith Barney At 200,102,208 200,000,000
6.13%, dated 4/28/00 due
5/1/00: (Commercial Paper
Obligations) (Principal
Amount $200,000,000) 0% -
6.18%, 5/9/00 - 5/30/00
TOTAL REPURCHASE AGREEMENTS 512,953,000
TOTAL INVESTMENT PORTFOLIO - 8,819,117,181
105.3%
NET OTHER ASSETS - (5.3)% (447,838,075)
NET ASSETS - 100% $ 8,371,279,106
Total Cost for Income Tax Purposes $ 8,819,117,181
</TABLE>
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 $135,000,000 or 1.6% 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 4/6/00 $ 80,000,000
Co. 6.24%, 5/1/00
Jackson National Life 7/6/99 $ 25,000,000
Insurance Co. 6.45%, 5/1/00
Monumental Life Insurance 7/31/98 - 9/17/98 $ 18,000,000
Co.: 6.27%, 5/1/00
6.30%, 5/1/00 3/12/99 $ 20,000,000
New York Life Insurance Co.: 8/13/99 $ 17,000,000
6.22%, 6/1/00
6.41%, 7/3/00 12/20/99 $ 15,000,000
Transamerica Occidental Life 4/28/00 $ 40,000,000
Insurance 6.56%, 5/30/00
OTHER INFORMATION
The fund invested in securities that are not registered under the
Securities Act of 1933. These securities are subject to legal or
contractual restrictions on resale. At the end of the period,
restricted securities (excluding Rule 144A issues) amounted to
$215,000,000 and 2.6% of net assets.
The fund participated in the interfund lending program as a lender.
The average daily loan balance during the period for which loans were
outstanding amounted to $10,324,500. The weighted average interest
rate was 5.83%. Interest earned from the interfund lending program
amounted to $10,024 and is included in interest income on the
Statement of Operations.
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.
PRIME FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 8,819,117,181
value (including repurchase
agreements of $512,953,000)
- See accompanying schedule
Cash 18
Receivable for investments 40,000,000
sold
Receivable for fund shares 165,294,213
sold
Interest receivable 35,921,729
Other receivables 3,518
TOTAL ASSETS 9,060,336,659
LIABILITIES
Payable for investments $ 274,963,559
purchased
Payable for fund shares 404,991,389
redeemed
Distributions payable 2,791,437
Accrued management fee 1,614,592
Distribution fees payable 2,624,567
Other payables and accrued 2,072,009
expenses
TOTAL LIABILITIES 689,057,553
NET ASSETS $ 8,371,279,106
Net Assets consist of:
Paid in capital $ 8,371,995,999
Accumulated net realized gain (716,893)
(loss) on investments
NET ASSETS $ 8,371,279,106
DAILY MONEY CLASS: NET ASSET $1.00
VALUE, offering price and
redemption price per share
($4,576,728,177 (divided by)
4,577,113,448 shares)
CAPITAL RESERVES CLASS: NET $1.00
ASSET VALUE, offering price
and redemption price per
share ($3,794,550,929
(divided by) 3,794,870,357
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INTEREST INCOME $ 243,572,625
EXPENSES
Management fee $ 10,134,185
Transfer agent fees 9,372,480
Distribution fees 14,566,212
Accounting fees and expenses 326,105
Non-interested trustees' 12,302
compensation
Custodian fees and expenses 63,808
Registration fees 775,261
Audit 23,673
Legal 16,554
Miscellaneous 7,945
Total expenses before 35,298,525
reductions
Expense reductions (3,126,859) 32,171,666
NET INTEREST INCOME 211,400,959
NET REALIZED GAIN (LOSS) ON 17,939
INVESTMENTS
NET INCREASE IN NET ASSETS $ 211,418,898
RESULTING FROM OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
2000 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 211,400,959 $ 294,115,962
Net realized gain (loss) 17,939 2,085
NET INCREASE (DECREASE) IN 211,418,898 294,118,047
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (211,400,959) (294,115,962)
from net interest income
Share transactions - net 1,110,934,805 1,607,217,411
increase (decrease)
TOTAL INCREASE (DECREASE) 1,110,952,744 1,607,219,496
IN NET ASSETS
NET ASSETS
Beginning of period 7,260,326,362 5,653,106,866
End of period $ 8,371,279,106 $ 7,260,326,362
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
SIX MONTHS ENDED APRIL 30, YEARS ENDED OCTOBER 31,
2000
(UNAUDITED) 1999 1998 1997 1996 E 1996 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 .026 .046 .050 .050 .012 .050
Less Distributions
From net interest income (.026) (.046) (.050) (.050) (.012) (.050)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B, C 2.68% 4.65% 5.15% 5.06% 1.22% 5.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 4,577 $ 4,336 $ 3,397 $ 2,687 $ 2,663 $ 2,581
(in millions)
Ratio of expenses to average .68% A, D .65% D .65% D .65% D .65% A, D .65% D
net assets
Ratio of net interest income 5.32% A 4.57% 5.03% 4.95% 4.85% A 5.00%
to average net assets
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
YEARS ENDED OCTOBER 31,
1995 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000
period
Income from Investment
Operations
Net interest income .050
Less Distributions
From net interest income (.050)
Net asset value, end of period $ 1.000
TOTAL RETURN B, C 5.16%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,139
(in millions)
Ratio of expenses to average .65% D
net assets
Ratio of net interest income 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 YEAR ENDED JULY 31
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CAPITAL RESERVES CLASS
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1999 1998 1997 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000000
period
Income from Investment
Operations
Net interest income .025 .043 .048 .000131
Less Distributions
From net interest income (.025) (.043) (.048) (.000131)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000000
TOTAL RETURN B, C 2.55% 4.39% 4.89% .01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,795 $ 2,924 $ 2,256 $ 1,764
(in millions)
Ratio of expenses to average .94% A, D .90% D .90% D .90% A, D
net assets
Ratio of net interest income 5.08% A 4.30% 4.79% 4.78% A
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 FOR OCTOBER 31, 1997 (COMMENCEMENT OF SALE OF CAPITAL RESERVES CLASS
SHARES)
TAX-EXEMPT FUND
INVESTMENTS APRIL 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
MUNICIPAL SECURITIES - 101.0%
PRINCIPAL AMOUNT VALUE (NOTE 1)
ALABAMA - 2.1%
Alabama Pub. School & College $ 5,000,000 $ 5,000,000
Auth. Rev. Participating
VRDN Series Putters 124,
5.16% (Liquidity Facility
J.P. Morgan & Co., Inc.)
(a)(b)
Birmingham Pub. Park & 2,800,000 2,800,000
Recreation Board Rev.
(McWane Ctr. Proj.) Series
1997, 5.05%, LOC Amsouth
Bank NA, Birmingham, VRDN (a)
Jefferson County Swr. Rev.
Participating VRDN:
Series MSDW 98 124, 5.15% 4,140,000 4,140,000
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(b)
Series PA 487R, 5.13% 1,500,000 1,500,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(b)
13,440,000
ALASKA - 0.2%
Alaska Hsg. Fin. Corp. 1,100,000 1,100,000
Participating VRDN Series
Merlots 99 D, 5.18%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(b)
ARIZONA - 2.3%
Maricopa County Ind. Dev. 3,000,000 3,000,000
Auth. Multi-family Hsg.
Auth. Rev. (Gran Victoria
Hsg. LLC Proj.) Series 2000
A, 5.9%, LOC Fannie Mae,
VRDN (a)
Maricopa County Poll. Cont. 1,000,000 1,000,000
Rev. (Arizona Pub. Svc. Co.
Proj.) Series 1994 E, 6.05%,
LOC Bank of America NA,
VRDN (a)
Pima County Ind. Dev. Auth. 4,100,000 4,100,000
Multi-family Hsg. Rev. (La
Cholla Apt. Proj.) Series
1996, 5.15%, LOC Chase Bank
of Texas NA, VRDN (a)
Pinal County Ind. Dev. Auth. 6,605,000 6,605,000
Hosp. Rev. (Casa Grande Med.
Ctr. Proj.) Series 1995,
5.05%, LOC Chase Manhattan
Bank, VRDN (a)
14,705,000
ARKANSAS - 0.6%
Pulaski County Health 4,100,000 4,100,000
Facilities Board Rev.
(Catholic Health Initiatives
Proj.) Series 2000 B, 5.1%,
LOC Bank One NA, VRDN (a)
CALIFORNIA - 2.6%
California Higher Ed. Student
Ln. Auth. Rev. Bonds:
Series 1987 A, 3.18%, tender 6,500,000 6,500,000
5/1/00, LOC Nat'l.
Westminster Bank PLC
Series 1992 D3, 4.35%, tender 4,900,000 4,900,000
4/1/01, LOC Student Ln.
Marketing Assoc.
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
CALIFORNIA - CONTINUED
Irvine Ranch Wtr. District $ 2,300,000 $ 2,300,000
Rev. Series 1985 C, 5.9%,
LOC Landesbank
Hessen-Thuringen, VRDN (a)
Los Angeles Reg'l. Arpt. 3,100,000 3,100,000
Impt. Rev. (Los Angeles
Int'l. Arpt., Air France
Proj.) 5.3%, LOC Societe
Generale, VRDN (a)
16,800,000
COLORADO - 0.7%
Colorado Springs Utils. Rev.
Participating VRDN:
Series SGA 88, 5.9% 3,800,000 3,800,000
(Liquidity Facility Societe
Generale) (a)(b)
Series SGB 28, 5.13% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale) (a)(b)
4,800,000
DELAWARE - 0.6%
Delaware Econ. Dev. Auth. 750,000 750,000
Multi-family Rev.
(Schoolhouse Trust Prog.)
5.5%, LOC HSBC Bank USA,
VRDN (a)
Delaware Econ. Dev. Auth. 1,000,000 1,000,000
Rev. (Delmarva Pwr. & Lt.
Co. Proj.) Series 1999 A,
5%, VRDN (a)
Delaware Gen. Oblig. 2,215,000 2,215,000
Participating VRDN Series
ROC 00 9, 5.13% (Liquidity
Facility Salomon Smith
Barney Hldgs., Inc.) (a)(b)
3,965,000
DISTRICT OF COLUMBIA - 0.5%
District of Columbia Rev. 3,575,000 3,575,000
(American Assoc. Med.
College Proj.) 4.57% (AMBAC
Insured), VRDN (a)
FLORIDA - 5.3%
Brevard County School 1,200,000 1,201,142
District TAN 4% 6/30/00
Broward County Fin. Auth. 5,000,000 5,000,000
Multi-family Hsg. Rev. Rfdg.
(Reflections Apts. Proj.)
Series 1999, 5.05%, LOC
Freddie Mac, VRDN (a)
Collier County Health 3,000,000 3,000,000
Facilities Auth. Hosp. Rev.
(Cleveland Clinic Health
Sys. Proj.) Series 1999,
5.95% (Liquidity Facility
Bank One NA, Michigan), VRDN
(a)
Florida Board of Ed. Cap. 3,075,000 3,075,000
Outlay Participating VRDN
Series MSDW 00 233, 5.15%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(b)
Jacksonville Elec. Auth. Rev. 2,500,000 2,500,000
Participating VRDN Series
MSDW 00 226, 5.15%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(b)
Lakeland Elec. & Wtr. Rev. 2,475,000 2,495,120
Rfdg. Bonds (Energy Sys.
Proj.) First Lien Series B,
6.3% 10/1/00 (FSA Insured)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
FLORIDA - CONTINUED
Lee County Hosp. Board
Directors Hosp. Rev. Bonds
(Lee Memorial Hosp. Proj.):
Series 1992 B, 4.1% tender $ 2,800,000 $ 2,800,000
5/5/00, CP mode
Series 1997 B, 4.05% tender 1,000,000 1,000,000
5/5/00, CP mode
Miami-Dade County School 4,600,000 4,604,228
District TAN Series 1999, 4%
6/28/00
Pasco County Hsg. Fin. Auth. 2,000,000 2,000,000
Multi-family Hsg. Rev.
(Carlton Arms of Magnolia
Valley Proj.) Series 1985,
5.225%, LOC First Union
Nat'l. Bank, North Carolina,
VRDN (a)
Saint Petersburg Cap. Impt. 1,000,000 1,000,000
Rev. (Florida Int'l. Museum
Proj.) Series 1997 A, 5.05%,
LOC Suntrust Bank, VRDN (a)
Sarasota County Pub. Hosp. 1,000,000 1,000,000
District Rev. Bonds
(Sarasota Memorial Hosp.
Proj.) Series A, 4.15%
tender 8/10/00, CP mode
Tampa Sports Auth. 4,400,000 4,400,000
Participating VRDN Series
SGA 61, 5.9% (Liquidity
Facility Societe Generale)
(a)(b)
34,075,490
GEORGIA - 8.0%
Brooks County Dev. Auth. Rev. 2,400,000 2,400,000
(Presbyterian Home, Inc.
Proj.) 5.1%, LOC Suntrust
Bank, VRDN (a)
Burke County Ind. Dev. Auth.
Poll. Cont. Rev.:
Bonds (Georgia Pwr. Co. Plant 10,585,000 10,585,000
Vogtle Proj.) Series 1995
S3, 4.9% tender 5/1/00, CP
mode
(Oglethorpe Pwr. Corp. Proj.) 3,200,000 3,200,000
Series A, 6.05% (AMBAC
Insured), VRDN (a)
Fulton County Hsg. Auth. 10,140,000 10,140,000
Multi-family Hsg. Rev. Rfdg.
(Champions Green Apts.
Proj.) Series 1994 B, 5.15%,
LOC Southtrust Bank NA,
VRDN (a)
Georgia Gen. Oblig. 4,600,000 4,600,000
Participating VRDN Series
991002, 5.15% (Liquidity
Facility Citibank NA, New
York) (a)(b)
Georgia Muni. Elec. Auth. 5,000,000 5,000,000
Participating VRDN Series
FRRI A71, 5.2% (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (a)(b)
Macon-Bibb County Hosp. Auth. 1,255,000 1,255,000
Rev. (Med. Ctr. of Central
Georgia Proj.) 5.1%, LOC
Suntrust Bank, VRDN (a)
Metro. Atlanta Rapid Transit 1,075,000 1,075,000
Auth. Sales Tax Rev.
Participating VRDN Series
MSDW 98 59, 5.15% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (a)(b)
Roswell Hsg. Auth. 1,100,000 1,100,000
Multi-family Hsg. Rev.
(Greenhouse Roswell Proj.)
Series 1996, 5.05% (Fannie
Mae Guaranteed), VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
GEORGIA - CONTINUED
Savannah Econ. Dev. Auth. $ 1,300,000 $ 1,300,000
Rev. Rfdg. (La Quinta Motor
Inns, Inc. Proj.) Series
1991, 5.15%, LOC Bank of
America NA, VRDN (a)
South Georgia Hosp. Auth. 11,000,000 11,000,000
Rev. (Alliance Cmnty. Hosp.
Proj.) Series 1999 A, 5.1%
(AMBAC Insured), VRDN (a)
51,655,000
IDAHO - 0.2%
Caribou County Poll. Cont. 1,500,000 1,500,000
Rev. Rfdg. (Monsanto Co.
Proj.) Series 1990, 5.15%,
VRDN (a)
ILLINOIS - 9.9%
Chicago Board of Ed. 3,400,000 3,400,000
Participating VRDN Series BA
96 BB, 5.23% (Liquidity
Facility Bank of America NA)
(a)(b)
Chicago Tax Increment Alloc. 2,700,000 2,700,000
Rev. (Stockyards Southeast
Quad Proj.) Series 1996 B,
5.1%, LOC Northern Trust
Co., Chicago, VRDN (a)
Chicago Wtr. Rev. 1,800,000 1,800,000
Participating VRDN Series
Merlots 97 V, 5.18%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(b)
Dupage Wtr. Commission Rfdg. 1,100,000 1,100,000
Participating VRDN Series
97C1301, 5.13% (Liquidity
Facility Citibank NA, New
York) (a)(b)
Illinois Dev. Fin. Auth. Rev.:
(AMR Pooled Fing. Prog.) 2,700,000 2,700,000
Series A, 5.1% (Bank of
America NA Guaranteed), VRDN
(a)
(Local Govt. Fing. Prog.) 3,900,000 3,900,000
Series 1999 A, 5.1% (AMBAC
Insured), VRDN (a)
Illinois Edl. Facilities
Auth. Rev.:
(Art Institute of Chicago 5,700,000 5,700,000
Proj.) Series 1996, 5.05%
(Liquidity Facility Bank of
America NA), VRDN (a)
(Chicago Children's Museum 1,000,000 1,000,000
Proj.) Series 1994, 5.05%,
LOC Bank One NA, Michigan,
VRDN (a)
(Field Museum of Natural 2,300,000 2,300,000
History Proj.) Series 2000,
5.05%, LOC Bank One NA, VRDN
(a)
Illinois Health Facilities
Auth. Rev.:
(Decatur Memorial Hosp. 3,555,000 3,555,000
Proj.) Series 1996 A, 5%
(MBIA Insured) (BPA Bank One
NA), VRDN (a)
(Little Co. of Mary Hosp. 19,995,000 19,994,998
Proj.) Series 1997 B, 5.13%
(MBIA Insured), VRDN (a)
(Resurrection Health Care
Proj.):
Series 1999A, 6.1% (FSA 2,400,000 2,400,000
Insured), VRDN (a)
Series B, 5.1% (FSA Insured), 5,000,000 5,000,000
VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
ILLINOIS - CONTINUED
Illinois Reg'l. Trans. Auth.
Participating VRDN:
Series SGB 10, 5.13% $ 1,645,000 $ 1,645,000
(Liquidity Facility Societe
Generale) (a)(b)
Series SGB 19, 5.13% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale) (a)(b)
Lombard Ind. Proj. Rev. Rfdg. 3,375,000 3,375,000
(B&H Partnership Proj.)
Series 1995, 5.35%, LOC
Comerica Bank, Detroit,
VRDN (a)
McCook Village Rev. (Saint 1,300,000 1,300,000
Andrew Society Proj.) Series
1996 A, 5.15%, LOC Northern
Trust Co., Chicago, VRDN (a)
Schaumberg Ind. Dev. Rev. 1,420,000 1,420,000
Rfdg. (La Quinta Motor Inns,
Inc. Proj.) Series 1991,
5.15%, LOC Bank of America
NA, VRDN (a)
64,289,998
INDIANA - 3.7%
Indiana Bond Bank TAN Series 3,200,000 3,212,671
2000 A2, 4.75% 1/18/01, LOC
Bank of America NA
Marshall County Ind. Econ. 12,500,000 12,500,000
Dev. Rev. (Culver Edl.
Foundation Prog.) Series
2000, 5.05%, LOC Bank One
NA, VRDN (a)
Richmond Econ. Dev. Rev. 8,100,000 8,100,000
(Friends Fellowship Cmnty.
Proj.) Series 1997, 5.1%,
LOC Bank One, Indiana NA,
VRDN (a)
23,812,671
IOWA - 0.6%
Iowa Fin. Auth. Rev. (Wheaton 3,700,000 3,700,000
Franciscan Svcs. Proj.)
Series 1998 B, 5% (MBIA
Insured), VRDN (a)
KANSAS - 0.4%
La Cygne Envir. Impt. Rev. 2,500,000 2,500,000
Rfdg. (Kansas City Pwr. &
Lt. Co. Proj.) Series 1994,
5.05%, VRDN (a)
KENTUCKY - 1.1%
Jefferson County Poll. Cont.
Rev. Bonds (Louisville Gas &
Elec. Co. Proj.):
Series 1993 A, 4.05% tender 1,635,000 1,635,000
5/1/00, CP mode
Series 1996 A, 4.05% tender 1,400,000 1,400,000
5/1/00, CP mode
Trimble County Poll. Cont.
Rev. Bonds (Louisville Gas &
Elec. Co. Proj.):
Series 1992 A:
4% tender 5/3/00, CP mode 1,000,000 1,000,000
4.15% tender 5/1/00, CP mode 1,000,000 1,000,000
4.9% tender 5/8/00, CP mode 1,000,000 1,000,000
Series 1996 A, 4.25% tender 1,000,000 1,000,000
5/17/00, CP mode
7,035,000
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
LOUISIANA - 0.7%
Calcasieu Parish Ind. Dev. $ 4,450,000 $ 4,450,000
Board Poll. Cont. Rev. Rfdg.
(PPG Industries, Inc.
Proj.) Series 1992, 5.15%,
VRDN (a)
MARYLAND - 0.4%
Montgomery County Hsg. 2,625,000 2,625,000
Opportunity Commission
Single Family Mtg. Rev.
Participating VRDN Series PA
40, 5.13% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(b)
MASSACHUSETTS - 0.3%
Massachusetts Tpk. Auth. 1,925,000 1,925,000
Western Tpk. Rev.
Participating VRDN Series BA
97 N, 5.21% (Liquidity
Facility Bank of America NA)
(a)(b)
MICHIGAN - 2.0%
Detroit Economic Dev. Corp. 4,530,000 4,530,000
Rev. (Waterfront Reclamation
& Casino Dev. Proj.) Series
1999 B, 5.1%, LOC Bank of
America NA, VRDN (a)
Michigan Muni. Bond Auth.
Rev. RAN:
Series B1, 4.25% 8/25/00 1,600,000 1,603,178
Series B2, 4.25% 8/25/00, LOC 2,100,000 2,104,365
Morgan Guaranty Trust Co., NY
Wayne Charter County Arpt. 1,500,000 1,500,000
Rev. Participating VRDN
Series SG 122, 5.13%
(Liquidity Facility Societe
Generale) (a)(b)
Wayne-Westland Cmnty. Schools 3,320,000 3,320,000
Participating VRDN Series
MSDW 98 67, 5.13% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (a)(b)
13,057,543
MINNESOTA - 1.7%
Becker Poll. Cont. Rev. Rfdg. 3,600,000 3,600,000
(Northern States Pwr. Co.-
Sherco 1 & 2 Proj.) Series
2000 A, 5.05%, VRDN (a)
Minneapolis & Saint Paul Hsg. 600,000 600,000
& Redev. Auth. Health Care
Sys. Rev. (Children's Health
Care Proj.) Series B, 6.05%
(FSA Insured) (BPA Norwest
Bank NA, Minnesota), VRDN (a)
Minnesota Gen. Oblig. 3,300,000 3,300,000
Participating VRDN Series
ROC 2 99 4, 5.13% (Liquidity
Facility Salomon Smith
Barney Hldgs., Inc.) (a)(b)
Minnesota Hsg. Fin. Agcy. 1,900,000 1,900,000
Participating VRDN Series PT
114, 5.13% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(b)
Minnetonka Multi-family Hsg. 1,400,000 1,400,000
Rev. Rfdg. (Cliffs at
Ridgedale Proj.) Series
1995, 5.2% (Fannie Mae
Guaranteed), VRDN (a)
10,800,000
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
MISSISSIPPI - 0.2%
Mississippi Dev. Bank Spl. $ 1,100,000 $ 1,100,000
Oblig. Participating VRDN
Series Merlots 00 HH, 5.18%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(b)
NEVADA - 0.4%
Nevada Gen. Oblig. 2,500,000 2,500,000
Participating VRDN Series
SGB 31, 5.13% (Liquidity
Facility Societe Generale)
(a)(b)
NEW JERSEY - 1.7%
Delaware River Port Auth. 1,900,000 1,900,000
Pennsylvania and New Jersey
Rev. Participating VRDN
Series SGA 89, 5.9%
(Liquidity Facility Societe
Generale) (a)(b)
New Jersey Econ. Dev. Auth. 1,400,000 1,400,000
Rev. (El Dorado Term. Co.
Proj.) Series 1999 A, 6%
(Dow Chemical Co.
Guaranteed), VRDN (a)
New Jersey Econ. Dev. Auth. 3,500,000 3,500,000
Wtr. Facilities Rev. Rfdg.
(United Wtr., Inc. Proj.)
Series 1996 B, 6.1% (AMBAC
Insured) (BPA Bank of New
York NA), VRDN (a)
Woodbridge Township Gen. 4,200,000 4,204,874
Oblig. BAN 3.9% 7/28/00
11,004,874
NEW MEXICO - 0.2%
Farmington Poll. Cont. Rev. 1,400,000 1,400,000
Participating VRDN Series
Merlots 00 DD, 5.5%
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(b)
NEW YORK - 4.8%
Long Island Pwr. Auth. Elec.
Sys. Rev.:
Participating VRDN Series PA 1,200,000 1,200,000
544, 5.13% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(b)
Series 5, 5.9%, LOC ABN-AMRO 5,800,000 5,800,000
Bank NV, LOC Morgan Guaranty
Trust Co., NY, VRDN (a)
New York City Gen. Oblig.:
Participating VRDN Series PA 5,995,000 5,995,000
624R, 5.08% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(b)
Series 1994 E2, 6%, LOC 1,550,000 1,550,000
Morgan Guaranty Trust Co.,
NY, VRDN (a)
New York City Transitional
Fin. Auth. Rev.
Participating VRDN:
Series FRRI 99 A46, 5.3% 3,600,000 3,600,000
(Liquidity Facility Bank of
New York NA) (a)(b)
Series FRRI 99 A47, 5.3% 3,200,000 3,200,000
(Liquidity Facility Bank of
New York NA) (a)(b)
Series Merlots 99 G, 5.13% 3,300,000 3,300,000
(Liquidity Facility First
Union Nat'l. Bank, North
Carolina) (a)(b)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
NEW YORK - CONTINUED
New York State Dorm. Auth. $ 4,650,000 $ 4,650,000
Revs. Participating VRDN
Series PT 1229, 5.08%
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(b)
New York State Local Govt. 1,700,000 1,700,000
Assistance Corp.
Participating VRDN Series PT
1040, 5.08% (Liquidity
Facility Bank of America NA)
(a)(b)
30,995,000
NEW YORK & NEW JERSEY - 0.1%
Port Auth. New York & New 1,000,000 1,000,000
Jersey Spl. Oblig. Rev.
Series 3, 6%, VRDN (a)
NON STATE SPECIFIC - 0.4%
Stephens Equity Trust I 2,782,035 2,782,035
Participating VRDN Series
1996, 5.23%, LOC Bayerische
Hypo-und Vereinsbank AG
(a)(b)
NORTH CAROLINA - 2.5%
North Carolina Eastern Muni. 5,995,000 5,995,000
Pwr. Agcy. Pwr. Sys. Rev.
Participating VRDN Series
MSDW 00 209, 5.15%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(b)
North Carolina Edl. 10,000,000 10,000,000
Facilities Fin. Agcy. Rev.
(Providence Day School
Proj.) Series 1999, 5.1%,
LOC Bank of America NA, VRDN
(a)
15,995,000
OHIO - 8.2%
Athens Gen. Oblig. BAN Fourth 2,600,000 2,605,075
Series, 4.6% 11/22/00
Clinton County Hosp. Rev.
(Ohio Hosp. Cap., Inc.
Pooled Prog.):
Series 1998, 5.1%, LOC Fifth 2,000,000 2,000,000
Third Bank, Cincinnati, VRDN
(a)
5.1%, LOC Fifth Third Bank, 11,700,000 11,700,000
Cincinnati, VRDN (a)
5.1%, LOC Nat'l. City Bank, 5,585,000 5,585,000
VRDN (a)
Dayton Gen. Oblig. BAN 4.6% 7,100,000 7,116,029
12/1/00
Franklin County Health Care 2,065,000 2,065,000
Facilities Rev. (Nat'l.
Church Residences Proj.)
Series B, 5.13%, LOC Fifth
Third Bank, Cincinnati, VRDN
(a)
Lorain County Independent 2,100,000 2,100,000
Living Facilities (Elyria
United Methodist Village
Proj.) 5.15%, LOC Bank One
NA, VRDN (a)
Ohio Air Quality Dev. Auth. 3,000,000 3,000,000
Rev. (Cinncinnati Gas &
Elec. Proj.) Series 1985 A,
6.1%, LOC UBS AG, VRDN (a)
Ohio Higher Edl. Facilities 7,200,000 7,200,000
Rev. (Pooled Fing. Prog.)
Series 1997, 5.1%, LOC Fifth
Third Bank, Cincinnati, VRDN
(a)
Ohio Pub. Facilities 3,000,000 3,017,074
Commission Rev. Bonds Series
II B, 5% 11/1/00 (FSA
Insured)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
OHIO - CONTINUED
Ohio Spl. Oblig. Bonds Series $ 2,000,000 $ 2,015,322
B, 5.25% 12/1/00 (FSA
Insured)
Olentangy Local School 5,000,000 5,009,571
District BAN 4.875% 9/15/00
53,413,071
OKLAHOMA - 0.8%
Oklahoma Dev. Fin. Auth. Rev.
(Oklahoma Hosp. Assoc. Proj.):
Series 1999 A, 5.1% (CDC Fdg. 4,200,000 4,200,000
Corp. Guaranteed), VRDN (a)
Series 2000 A, 5.1% (CDC Fdg. 1,200,000 1,200,000
Corp. Guaranteed), VRDN (a)
5,400,000
PENNSYLVANIA - 7.9%
Allegheny County Ind. Dev. 2,000,000 2,000,000
Auth. Rev. Rfdg. (Duquesne
Lt. Co. Proj.) Series 1999
A, 5.1% (AMBAC Insured),
VRDN (a)
Berks County Ind. Dev. Auth. 475,000 475,000
Rev. (Construction Fasteners
Proj.) Series 1996 A, 5.3%,
LOC First Union Nat'l. Bank,
North Carolina, VRDN (a)
Dauphin County Gen. Auth. Rev.:
(All-Health Pooled Fing. 4,985,000 4,985,000
Prog.) Series 1997 B, 5.1%
(FSA Insured) (BPA Cr. Swiss
First Boston Bank), VRDN (a)
(School District Pooled Fing. 11,200,000 11,200,000
Prog.) 5.2% (AMBAC Insured)
(BPA Bank of Nova Scotia)
(BPA Commerzbank AG), VRDN
(a)
Delaware County Indl. Dev. 4,700,000 4,700,000
Auth. Arpt. Facilities Rev.
(United Parcel Svc. Proj.)
Series 1985, 5.95%, VRDN (a)
Emmaus Gen. Auth. Rev. 11,000,000 11,000,000
(Pennsylvania Ln. Prog.)
Series 2000 A, 5.08% (FSA
Insured), VRDN (a)
New Garden Gen. Auth. Muni. 3,700,000 3,700,000
Rev. (Muni. Pooled Fing.
Prog.) Series 1999, 5.2%
(AMBAC Insured), VRDN (a)
North Pennsylvania Wtr. Auth. 1,030,000 1,030,000
Wtr. Rev. Participating VRDN
Series SGA 30, 5.15%
(Liquidity Facility Societe
Generale) (a)(b)
Pennsylvania Gen. Oblig. 3,700,000 3,700,000
Participating VRDN Series
ROC 00 3, 5.13% (Liquidity
Facility Salomon Smith
Barney Hldgs., Inc.) (a)(b)
Pennsylvania 1,700,000 1,700,000
Intergovernmental Coop.
Auth. Spl. Tax Rev.
Participating VRDN Series SG
16, 5.13% (Liquidity
Facility Societe Generale)
(a)(b)
Philadelphia Gen. Oblig. TRAN 1,650,000 1,651,964
Series 1999 2000 A, 4.25%
6/30/00
Philadelphia School District 1,800,000 1,801,573
TRAN Series A, 4% 6/30/00,
LOC First Union Nat'l. Bank,
North Carolina
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
PENNSYLVANIA - CONTINUED
Quakertown Hosp. Auth. Hosp. $ 1,400,000 $ 1,400,000
Rev. (Pooled Fing. Prog.)
Series 1985 A, 5%, LOC PNC
Bank NA, VRDN (a)
Southeastern Pennsylvania 1,660,000 1,660,000
Trans. Auth. Spl. Rev.
Participating VRDN Series
MSDW 98 109, 5.13%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(b)
51,003,537
SOUTH CAROLINA - 4.3%
Charleston County School 2,000,000 2,001,441
District BAN 4.7% 6/29/00
Columbia Wtrwks. & Swr. Rev. 7,495,000 7,495,000
Participating VRDN Series
MSDW 00 212, 5.15%
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(b)
Oconee County Poll. Cont. 2,900,000 2,900,000
Rev. (Duke Energy Corp.
Proj.) Series A, 6.1%, VRDN
(a)
Piedmont Muni. Pwr. Agcy. 1,200,000 1,200,000
Elec. Rev. Series 1997 B,
5.05% (MBIA Insured) (BPA
Cr. Swiss First Boston
Bank), VRDN (a)
South Carolina Edl. 4,925,000 4,925,000
Facilities Auth. (Claflin
College Proj.) Series 1997,
5.28%, LOC Bank of America
NA, VRDN (a)
South Carolina Hsg. Fin. & 9,415,000 9,415,000
Hsg. Dev. Auth. Multi-family
Rev. Rfdg.
(Spartanburg-Oxford Proj.)
Series 1990 D, 5.2%
(Continental Casualty Co.
Guaranteed), VRDN (a)
27,936,441
TENNESSEE - 4.1%
Clarksville Pub. Bldg. Auth. 2,000,000 2,000,000
(Pooled Fing. Prog.) 5.1%,
LOC Bank of America NA, VRDN
(a)
Knox County Health & Ed. Hsg. 2,900,000 2,900,000
Facilities Board Rev.
(Pooled Hosp. Ln. Prog.)
Series 1999 A, 5.1% (CDC
Fdg. Corp. Guaranteed), VRDN
(a)
Memphis Gen. Oblig. 1,200,000 1,200,000
Participating VRDN Series
SGB 23, 5.13% (Liquidity
Facility Societe Generale)
(a)(b)
Sevier County Pub. Bldg.
Auth. Rev.:
(Local Govt. Impt. Proj.) 1,100,000 1,100,000
Series IV A3, 6% (FSA
Insured) (BPA Morgan
Guaranty Trust Co., NY),
VRDN (a)
Series D1, 5.05% (AMBAC 1,500,000 1,500,000
Insured), VRDN (a)
Series IV B12, 6% (FSA 1,200,000 1,200,000
Insured), VRDN (a)
Shelby County Gen. Oblig.:
Series 1999 A, 4.3% 7/7/00, CP 6,700,000 6,700,000
TAN Series B, 4.25% 6/30/00 9,700,000 9,708,202
26,308,202
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
TEXAS - 10.2%
Austin Gen. Oblig. $ 1,100,000 $ 1,100,000
Participating VRDN Series
1999 2, 5.13% (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (a)(b)
Austin Hsg. Fin. Corp. 1,000,000 1,000,000
Multi-family Hsg. Rev.
(Riverchase Proj.) Series
1985 A, 4.67%, LOC Household
Fin. Corp., VRDN (a)
Brazos River Hbr. Navigation 4,000,000 4,000,000
District of Brazoria County
Rev. Bonds (Dow Chemical Co.
Proj.) Series 1991, 4.2%
tender 8/17/00, CP mode
Coastal Wtr. Auth. 1,020,000 1,020,000
Participating VRDN Series
1997 J Class A, 5.13%
(Liquidity Facility Caisse
des Depots et Consignations)
(a)(b)
Comal County Health 2,000,000 2,000,000
Facilities Dev. Rev.
(McKenna Memorial Health
Sys. Proj.) 5.15%, LOC Chase
Bank of Texas NA, VRDN (a)
Denton Util. Sys. Rev. Rfdg. 1,000,000 1,000,000
Participating VRDN Series
SGA 32, 5.15% (Liquidity
Facility Societe Generale)
(a)(b)
Farmers Branch Ind. Dev. 1,300,000 1,300,000
Corp. Rev. Rfdg. (PPG
Industries, Inc. Proj.)
Series 1992, 5.15%, VRDN (a)
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 Cultural Ed. 1,900,000 1,900,000
Facilities Fin. Corp. Rev.
(Houston Music Hall-Hobby
Ctr. Proj.) Series 1999,
5.15%, LOC Chase Bank of
Texas NA, VRDN (a)
Harris County Health
Facilities Dev. Corp. Rev.
(Saint Lukes Hosp. Proj.):
Series A, 6%, VRDN (a) 3,100,000 3,100,000
Series B, 6%, VRDN (a) 2,520,000 2,520,000
Harris County Health 1,500,000 1,500,000
Facilities Dev. Corp. Spl.
Facilities Rev. (Texas Med.
Ctr. Proj.) Series 1999 B,
5.15% (FSA Insured), VRDN (a)
Harris County Ind. Dev. Corp. 1,300,000 1,300,000
Ind. Dev. Rev. (Johann
Haltermann Proj.) Series
1996 A, 5.15%, LOC Chase
Bank of Texas NA, VRDN (a)
Houston Gen. Oblig. Series B, 5,000,000 5,000,000
4.15% 9/14/00, CP
Houston Higher Ed. Fin. Corp. 2,000,000 2,000,000
Higher Ed. Rev.
Participating VRDN Series SG
127, 5.13% (Liquidity
Facility Societe Generale)
(a)(b)
North Central Texas Health
Facilities Dev. Corp. Rev.
(Presbyterian Med. Ctr.
Proj.):
Series C, 6% (MBIA Insured) 1,000,000 1,000,000
(BPA Bank of America NA),
VRDN (a)
Series D, 6% (MBIA Insured) 3,200,000 3,200,000
(BPA Bank of America NA),
VRDN (a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
TEXAS - CONTINUED
Pearland Independent School $ 5,000,000 $ 5,000,000
District Participating VRDN
Series SG 106, 5.13%
(Liquidity Facility Societe
Generale) (a)(b)
San Antonio Arpt. Sys. 8,805,000 8,805,000
Participating VRDN Series
96C4305, 5.13% (Liquidity
Facility Citibank NA, New
York) (a)(b)
San Antonio Elec. & Gas Rev.:
Participating VRDN:
Series SG 101, 5.13% 3,400,000 3,400,000
(Liquidity Facility Societe
Generale) (a)(b)
Series SG 105, 5.13% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale) (a)(b)
Rfdg. Participating VRDN 1,100,000 1,100,000
Series SG 104, 5.13%
(Liquidity Facility Societe
Generale) (a)(b)
San Antonio Wtr. Rev. 2,000,000 2,000,000
Participating VRDN Series
FRRI A79, 5.25% (Liquidity
Facility Bayerische Hypo-und
Vereinsbank AG) (a)(b)
Southwest Higher Ed. Auth. 900,000 900,000
Rev. (Southern Methodist
Univ. Proj.) 6.1%, LOC
Landesbank Hessen-Thuringen,
VRDN (a)
Texarkana Ind. Dev. Corp. 1,690,000 1,690,000
Ind. Dev. Rev. Rfdg. (La
Quinta Motor Inns, Inc.
Proj.) Series 1991, 5.15%,
LOC Bank of America NA, VRDN
(a)
Texas Gen. Oblig. TRAN Series 5,300,000 5,306,082
1999 A, 4.5% 8/31/00
Univ. of Texas Univ. Rev. 2,900,000 2,900,000
Participating VRDN Series
MSDW 98 97, 5.15% (Liquidity
Facility Morgan Stanley Dean
Witter & Co.) (a)(b)
66,041,082
UTAH - 1.4%
Intermountain Pwr. Agcy. 2,000,000 2,000,000
Rfdg. Participating VRDN
Series 96C4402 Class A,
5.13% (Liquidity Facility
Citibank NA, New York) (a)(b)
Intermountain Pwr. Agcy. Pwr. 2,700,000 2,700,000
Supply Rev. Bonds Series
1985 E, 4.075%, tender
9/15/00 (AMBAC Insured)
Provo City Hsg. Rev. 4,230,000 4,230,000
(Branbury Park Proj.) Series
1987 A, 5.2%, LOC Bank One,
Arizona NA, VRDN (a)
8,930,000
VIRGINIA - 0.7%
Newport News Gen. Oblig. BAN 1,000,000 1,000,450
4.5% 6/15/00
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
VIRGINIA - CONTINUED
Roanoke Ind. Dev. Auth. Hosp. $ 2,300,000 $ 2,300,000
Rev. (Carilion Health Svc.
Proj.) Series 1997 B, 6%
(Liquidity Facility Bank of
America NA), VRDN (a)
Virginia Hsg. Dev. Auth. 1,500,000 1,500,000
Commonwealth Mtg. Rev. Bonds
Sub Series B, 4.12%, tender
9/12/00
4,800,450
WASHINGTON - 3.5%
Washington Gen. Oblig.:
Participating VRDN:
Series SG 37, 5.13% 5,500,000 5,500,000
(Liquidity Facility Societe
Generale) (a)(b)
Series SGA 35, 5.15% 1,000,000 1,000,000
(Liquidity Facility Societe
Generale) (a)(b)
Series SGA 36, 5.15% 2,260,000 2,260,000
(Liquidity Facility Societe
Generale) (a)(b)
Series SGB 09, 5.13% 900,000 900,000
(Liquidity Facility Societe
Generale) (a)(b)
Series SGB 11, 5.13% 4,595,000 4,595,000
(Liquidity Facility Societe
Generale) (a)(b)
Ctfs. of Prtn. Participating 5,395,000 5,395,000
VRDN Series 1993 C Class A,
5.13% (Liquidity Facility
Citibank NA, New York) (a)(b)
Washington Health Care 2,815,000 2,815,000
Facilities Auth. Rev.
(Virginia Mason Med. Ctr.
Proj.) Series 1997 B, 6%
(MBIA Insured), VRDN (a)
22,465,000
WISCONSIN - 3.8%
Milwaukee County Gen. Oblig.
Participating VRDN:
Series FRRI 00 A8, 5.2% 2,100,000 2,100,000
(Liquidity Facility Bank of
New York NA) (a)(b)
Series FRRI A37, 5.2% 5,500,000 5,500,000
(Liquidity Facility Bank of
New York NA) (a)(b)
Wisconsin Gen. Oblig.
Participating VRDN:
Series MSDW 00 291, 5.15% 1,827,500 1,827,500
(Liquidity Facility Morgan
Stanley Dean Witter & Co.)
(a)(b)
Series PT 1231, 5.13% 15,000,000 15,000,000
(Liquidity Facility Merrill
Lynch & Co., Inc.) (a)(b)
24,427,500
WYOMING - 1.9%
Lincoln County Poll. Cont. 10,100,000 10,100,000
Rev. (Exxon Corp. Proj.)
Series 1984 D, 5.95%, VRDN
(a)
MUNICIPAL SECURITIES -
CONTINUED
PRINCIPAL AMOUNT VALUE (NOTE 1)
WYOMING - CONTINUED
Platte County Poll. Cont. $ 2,200,000 $ 2,200,000
Rev. Rfdg. (Tri-State
Generation & Transmission
Assoc. Proj.) Series 1984 A,
6.1%, LOC Nat'l. Rural
Util. Coop. Fin. Corp., VRDN
(a)
Wyoming Cmnty. Dev. Auth. 260,000 260,000
Participating VRDN Series
PT 112, 5.13% (Liquidity
Facility Merrill Lynch &
Co., Inc.) (a)(b)
12,560,000
TOTAL INVESTMENT PORTFOLIO - 653,972,894
101.0%
NET OTHER ASSETS - (1.0)% (6,659,899)
NET ASSETS - 100% $ 647,312,995
Total Cost for Income Tax Purposes $ 653,972,894
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) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(b) 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 $64,000, $1,000, $3,000 and $28,000
will expire on October 31, 2004, 2005, 2006 and 2007, respectively.
TAX-EXEMPT FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
APRIL 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 653,972,894
value - See accompanying
schedule
Receivable for fund shares 5,577,404
sold
Interest receivable 4,811,507
TOTAL ASSETS 664,361,805
LIABILITIES
Payable to custodian bank $ 38,566
Payable for investments 4,216,803
purchased
Payable for fund shares 12,211,646
redeemed
Distributions payable 145,662
Accrued management fee 90,612
Distribution fees payable 184,099
Other payables and accrued 161,422
expenses
TOTAL LIABILITIES 17,048,810
NET ASSETS $ 647,312,995
Net Assets consist of:
Paid in capital $ 647,468,781
Accumulated undistributed net (155,786)
realized gain (loss) on
investments
NET ASSETS $ 647,312,995
DAILY MONEY CLASS: NET ASSET $1.00
VALUE, offering price and
redemption price per share
($453,044,300 (divided by)
453,153,121 shares)
CAPITAL RESERVES CLASS: NET $1.00
ASSET VALUE and offering
price per share
($194,268,695 (divided by)
194,315,357 shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED APRIL 30,
2000 (UNAUDITED)
INTEREST INCOME $ 13,246,947
EXPENSES
Management fee $ 873,590
Transfer agent fees 778,548
Distribution fees 1,130,905
Accounting fees and expenses 59,132
Non-interested trustees' 1,099
compensation
Custodian fees and expenses 9,243
Registration fees 113,094
Audit 11,904
Legal 1,538
Miscellaneous 834
Total expenses before 2,979,887
reductions
Expense reductions (336,029) 2,643,858
NET INTEREST INCOME 10,603,089
REALIZED AND UNREALIZED GAIN (60,481)
(LOSS)
Net realized gain (loss) on
investment securities
Increase (decrease) in net (30)
unrealized gain from
accretion of discount
NET GAIN (LOSS) (60,511)
NET INCREASE (DECREASE) IN $ 10,542,578
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED APRIL 30, YEAR ENDED OCTOBER 31, 1999
2000 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net interest income $ 10,603,089 $ 17,508,672
Net realized gain (loss) (60,481) (27,371)
Increase (decrease) in net (30) -
unrealized gain from
accretion of discount
NET INCREASE (DECREASE) IN 10,542,578 17,481,301
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (10,603,089) (17,508,672)
from net interest income
Share transactions - net (25,737,629) (31,698,257)
increase (decrease)
TOTAL INCREASE (DECREASE) (25,798,140) (31,725,628)
IN NET ASSETS
NET ASSETS
Beginning of period 673,111,135 704,836,763
End of period $ 647,312,995 $ 673,111,135
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - DAILY MONEY CLASS
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1999 1998 1997 1996 1995
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 .015 .026 .030 .031 .030 .033
Less Distributions
From net interest income (.015) (.026) (.030) (.031) (.030) (.033)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN B, C 1.56% 2.65% 3.03% 3.10% 3.02% 3.36%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 453 $ 503 $ 519 $ 469 $ 500 $ 559
(in millions)
Ratio of expenses to average .68% A, D .65% D .65% D .65% D .65% D .65% D
net assets
Ratio of net interest income 3.10% A 2.61% 2.99% 3.06% 2.98% 3.31%
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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS - CAPITAL RESERVES CLASS
SIX MONTHS ENDED APRIL 30, 2000 YEARS ENDED OCTOBER 31,
(UNAUDITED) 1999 1998 1997 F
SELECTED PER-SHARE DATA
Net asset value, beginning $ 1.000 $ 1.000 $ 1.000 $ 1.000000
of period
Income from Investment
Operations
Net interest income .014 .024 .027 .000078
Less Distributions
From net interest income (.014) (.024) (.027) (.000078)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000000
TOTAL RETURN B, C 1.43% 2.40% 2.78% .01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 194 $ 170 $ 186 $ 177
(in millions)
Ratio of expenses to average .94% A, D .90% D .90% D .90% A, D
net assets
Ratio of expenses to average .93% A, E .90% .90% .90% A
net assets after expense
reductions
Ratio of net interest income 2.87% A 2.37% 2.73% 2.81% A
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 FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE CLASS' EXPENSES.
F FOR OCTOBER 31, 1997 (COMMENCEMENT OF SALE OF CAPITAL RESERVES CLASS
SHARES)
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 2000 (Unaudited)
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, Federal Agency,
or other obligations found to be satisfactory by FMR are transferred
to an account of the funds, or to the Joint Trading Account, at a bank
custodian. The securities are marked-to-market daily and maintained at
a value at least equal to the principal amount of the repurchase
agreement (including accrued interest). FMR, the funds' investment
adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
INTERFUND LENDING PROGRAM. Pursuant to an Exemptive Order issued by
the SEC, the funds, along with other registered investment companies
having management contracts with FMR, may participate in an interfund
lending program. This program provides an alternative credit facility
allowing the funds to borrow from, or lend money to, other
participating funds. Information regarding each fund's participation
in the program is included under the caption "Other Information" at
the end of each applicable fund's schedule of investments.
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. 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 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 maturity values
of the joint trading account investment having variable rates are
calculated based on the rate at period end. The investments in
repurchase agreements through the joint trading account are summarized
as follows:
<TABLE>
<CAPTION>
<S> <C>
SUMMARY OF JOINT TRADING
DATED APRIL 7, 2000, DUE MAY 16, 2000 AT 5.95%
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 $503,222,917
Aggregate market value of transferred assets $511,640,593
Coupon rates of transferred assets 0.00% to 7.25%
Maturity dates of transferred assets 10/26/00 to 5/15/16
DATED APRIL 18, 2000, DUE JUNE 1, 2000 AT 6.01%
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 $503,636,111
Aggregate market value of transferred assets $515,216,873
Coupon rates of transferred assets 5.25% to 8.00%
Maturity dates of transferred assets 2/28/03 to 2/15/29
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED APRIL 28, 2000, DUE MAY 1, 2000 AT 5.71%
Number of dealers or banks 8
Maximum amount with one dealer or bank 63.2%
Aggregate principal amount of agreements $855,547,000
Aggregate maturity amount of agreements $855,953,961
Aggregate market value of transferred assets $873,622,382
Coupon rates of transferred assets 0.00% to 15.75%
Maturity dates of transferred assets 6/8/00 to 8/15/29
DATED APRIL 28, 2000, DUE MAY 1, 2000 AT 5.77%
Number of dealers or banks 11
Maximum amount with one dealer or bank 23.5%
Aggregate principal amount of agreements $5,329,082,000
Aggregate maturity amount of agreements $5,331,642,939
Aggregate market value of transferred assets $5,453,684,538
Coupon rates of transferred assets 0.00% to 12.75%
Maturity dates of transferred assets 6/22/00 to 8/15/29
</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 has 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 $ 1,711,368 $ 36,918
TREASURY - CAPITAL RESERVES 2,464,492 -
CLASS
TREASURY - ADVISOR B CLASS 652,886 490,566
TREASURY - ADVISOR C CLASS 307,651 172,527
$ 5,136,397 $ 700,011
PRIME - DAILY MONEY CLASS $ 5,702,156 $ 101,121
PRIME - CAPITAL RESERVES CLASS 8,864,056 28,832
$ 14,566,212 $ 129,953
TAX-EXEMPT - DAILY MONEY CLASS $ 616,269 $ 42,517
TAX-EXEMPT - CAPITAL RESERVES 514,636 425
CLASS
$ 1,130,905 $ 42,942
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 $668,504 and $60,250
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
Treasury and Prime. Effective June 21, 1999 Citibank, N.A.(Citibank)
replaced UMB Bank n.a. as the custodian, transfer agent and
shareholder servicing agent for Tax-Exempt. Citibank has entered into
a sub-contract with FIIOC to perform the activities associated with
Tax-Exempt'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 $ 1,577,148 .23
TREASURY - CAPITAL RESERVES FIIOC 1,088,303 .22
CLASS
TREASURY - ADVISOR B CLASS FIIOC 144,375 .22
TREASURY - ADVISOR C CLASS FIIOC 73,909 .24
$ 2,883,735
PRIME - DAILY MONEY CLASS FIIOC $ 5,315,540 .23
PRIME - CAPITAL RESERVES CLASS FIIOC 4,056,940 .23
$ 9,372,480
TAX-EXEMPT - DAILY MONEY CLASS Citibank $ 547,581 .22
TAX-EXEMPT - CAPITAL RESERVES Citibank 230,967 .22
CLASS
$ 778,548
</TABLE>
* ANNUALIZED
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, have entered into insurance agreements with FIDFUNDS
Mutual Limited (FIDFUNDS), an affiliated mutual insurance company.
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 $13,510,
$277,485 and $27,884, respectively, for the calendar year 2000 to
FIDFUNDS, all of which were reimbursed by FMR.
5. EXPENSE REDUCTIONS.
Effective January 1, 2000, 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 0.70% $ 505,105
TREASURY - CAPITAL RESERVES 0.95% 314,814
CLASS
TREASURY - ADVISOR B CLASS 1.45% 43,043
TREASURY - ADVISOR C CLASS 1.45% 25,213
$ 888,175
PRIME - DAILY MONEY CLASS 0.70% $ 1,815,672
PRIME - CAPITAL RESERVES CLASS 0.95% 1,308,664
$ 3,124,336
TAX-EXEMPT - DAILY MONEY CLASS 0.70% $ 237,179
TAX-EXEMPT - CAPITAL RESERVES 0.95% 98,530
CLASS
$ 335,709
For the period November 1, 1999 through December 31, 1999, 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
TREASURY - DAILY MONEY CLASS 0.65%
TREASURY - CAPITAL RESERVES 0.90%
CLASS
TREASURY - ADVISOR B CLASS 1.40%
TREASURY - ADVISOR C CLASS 1.40%
PRIME - DAILY MONEY CLASS 0.65%
PRIME - CAPITAL RESERVES CLASS 0.90%
TAX-EXEMPT - DAILY MONEY CLASS 0.65%
TAX-EXEMPT - CAPITAL RESERVES 0.90%
CLASS
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 $2,523 and $320 under this arrangement
for Prime and Tax-Exempt, respectively.
6. BENEFICIAL INTEREST.
At the end of the period, three shareholders were each record owners
of more than 10% of the total outstanding shares of Treasury, totaling
38%.
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 SIX MONTHS YEAR ENDED OCTOBER 31, 1999
ENDED APRIL 30, 2000
TREASURY - DAILY MONEY CLASS $ 33,645,010 $ 56,266,008
TREASURY - CAPITAL RESERVES 23,069,636 32,147,540
CLASS
TREASURY - ADVISOR B CLASS 2,713,477 3,285,526
TREASURY - ADVISOR C CLASS 1,293,782 1,235,946
TOTAL $ 60,721,905 $ 92,935,020
PRIME - DAILY MONEY CLASS $ 121,359,263 $ 176,390,936
PRIME - CAPITAL RESERVES CLASS 90,041,696 117,725,026
TOTAL $ 211,400,959 $ 294,115,962
TAX-EXEMPT - DAILY MONEY CLASS $ 7,651,572 $ 13,167,682
TAX-EXEMPT - CAPITAL RESERVES 2,951,517 4,340,990
CLASS
TOTAL $ 10,603,089 $ 17,508,672
</TABLE>
8. SHARE TRANSACTIONS.
Share transactions for each class of shares for the periods were as
follows:
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED OCTOBER 31, 1999
ENDED APRIL 30, 2000
TREASURY - DAILY MONEY CLASS 3,430,605,985 5,722,936,674
Shares sold
Reinvestment of distributions 30,313,514 49,125,095
from net interest income
Shares redeemed (3,572,196,227) (5,697,775,047)
Net increase (decrease) (111,276,728) 74,286,722
TREASURY - CAPITAL RESERVES 2,234,775,316 3,416,749,618
CLASS Shares sold
Reinvestment of distributions 6,286,376 10,369,848
from net interest income
Shares redeemed (2,159,355,887) (2,957,403,279)
Net increase (decrease) 81,705,805 469,716,187
TREASURY - ADVISOR B CLASS 163,958,958 318,202,032
Shares sold
Reinvestment of distributions 2,391,950 2,915,643
from net interest income
Shares redeemed (206,620,929) (240,560,462)
Net increase (decrease) (40,270,021) 80,557,213
TREASURY - ADVISOR C CLASS 155,925,733 353,971,617
Shares sold
Reinvestment of distributions 1,093,454 1,010,792
from net interest income
Shares redeemed (150,561,186) (308,828,882)
Net increase (decrease) 6,458,001 46,153,527
PRIME - DAILY MONEY CLASS 13,188,397,578 20,996,467,981
Shares sold
Reinvestment of distributions 112,603,090 164,591,586
from net interest income
Shares redeemed (13,059,829,920) (20,222,203,985)
Net increase (decrease) 241,170,748 938,855,582
PRIME - CAPITAL RESERVES 21,598,500,878 23,390,518,755
CLASS Shares sold
Reinvestment of distributions 82,543,334 109,332,314
from net interest income
Shares redeemed (20,811,280,155) (22,831,489,240)
Net increase (decrease) 869,764,057 668,361,829
TAX-EXEMPT - DAILY MONEY 1,039,033,475 1,751,898,670
CLASS Shares sold
Reinvestment of distributions 6,909,457 11,633,194
from net interest income
Shares redeemed (1,095,934,089) (1,778,973,508)
Net increase (decrease) (49,991,157) (15,441,644)
TAX-EXEMPT - CAPITAL RESERVES 553,513,879 897,724,620
CLASS Shares sold
Reinvestment of distributions 2,872,358 4,146,977
from net interest income
Shares redeemed (532,132,709) (918,128,210)
Net increase (decrease) 24,253,528 (16,256,613)
</TABLE>
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
SUB-ADVISER
Fidelity Investments
Money Management, Inc.
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Dwight D. Churchill, 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
Robert A. Dwight, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Maria F. Dwyer, 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
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Michael Cook
Abigail P. Johnson
* INDEPENDENT TRUSTEES
DMFI-SANN-0600 103975
1.703547.102
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
