SPARTAN
(registered trademark)
(registered trademark)
U.S. TREASURY
MONEY MARKET
FUND
ANNUAL REPORT
JULY 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 8 A summary of major shifts in the
fund's investments over the past six
months
and one year.
INVESTMENTS 9 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 11 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 15 Notes to the financial statements.
REPORT OF INDEPENDENT
ACCOUNTANTS 16 The auditor's opinion.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR
GUARANTEED BY, ANY
DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE FEDERAL
RESERVE BOARD OR
ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISK, INCLUDING THE
POSSIBLE LOSS OF
PRINCIPAL. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A
BANK.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first half of 1994 was an unsettling time for many investors. For
example, after three years of a nearly perfect environment for stock market
investing, stock prices generally fell from February through June. Bond
prices have fallen as well. Investors disagree about whether these declines
represent only a short-term correction or signal the beginning of a longer
bear market. One can collect statistics to support either opinion, but of
course, nobody knows for sure what will happen in the months ahead.
We do know, however, that market declines are a normal part of investing.
We have historically seen corrections of 10% or more every two years.
That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful investors in
every market cycle.
First, take a long-term approach when investing. If you can afford to leave
your money invested through the inevitable ups and downs of financial
markets, you will greatly reduce your vulnerability to any single decline.
Over time, for example, stock prices have gone up - and have significantly
outperformed other types of investments and stayed ahead of inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
To measure a money market fund's performance, you can look at either total
return or yield. Total return reflects the change in a fund's share price
over a given period, reinvestment of its dividends (or income), and the
effect of a $5 account closeout fee. Yield measures the income paid by a
fund. Since a money market fund tries to maintain a $1 share price, yield
is an important measure of performance. If Fidelity had not reimbursed
certain fund expenses during the periods shown, the total returns would
have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan U.S. Treasury Money Market 2.99% 28.26% 43.71%
Consumer Price Index 2.77% 19.29% 28.60%
Average U.S. Treasury
Money Market Fund 2.84% 26.41% 41.49%
CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, one year, five years, or since the fund started on January
5, 1988. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, you would end up with $1,050. Comparing the fund's
performance to the consumer price index (CPI) helps show how your
investment did compared to inflation. To measure how the fund stacked up
against its peers, you can compare its return to the average U.S. Treasury
money market fund's total returns. This average currently reflects the
performance of over 113 U.S. Treasury money market funds tracked by
IBC/Donoghue. (The periods covered by the CPI and IBC/Donoghue numbers are
the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JULY 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Spartan U.S. Treasury Money Market 2.99% 5.10% 5.67%
Consumer Price Index 2.77% 3.59% 3.89%
Average U.S. Treasury
Money Market Fund 2.84% 4.80% 5.42%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had achieved that return
by performing at a constant rate each year.
YIELDS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
7/31/93 10/31/93 1/31/94 4/30/94 7/31/94
Spartan U.S. Treasury 2.65% 2.70% 2.76% 3.05% 3.87%
Money Market
If Fidelity had not reimburs 2.55% 2.60% 2.66% 2.95% 3.77%
ed
certain fund expenses
Average U.S. Treasury 2.54% 2.51% 2.54% 2.96% 3.61%
Money Market Fund
2.45% 2.36% 2.30% 2.31% 2.40%
MMDA
</TABLE>
Row: 1, Col: 1, Value: 2.65
Row: 1, Col: 2, Value: 2.54
Row: 1, Col: 3, Value: 2.45
Row: 2, Col: 1, Value: 2.7
Row: 2, Col: 2, Value: 2.51
Row: 2, Col: 3, Value: 2.36
Row: 3, Col: 1, Value: 2.76
Row: 3, Col: 2, Value: 2.54
Row: 3, Col: 3, Value: 2.3
Row: 4, Col: 1, Value: 3.05
Row: 4, Col: 2, Value: 2.96
Row: 4, Col: 3, Value: 2.31
Row: 5, Col: 1, Value: 3.87
Row: 5, Col: 2, Value: 3.61
Row: 5, Col: 3, Value: 2.4
4% -
3% -
2% -
1% -
0%
Spartan
U.S. Treasury
Money Market
Average U.S.
Treasury Money
Market Fund
MMDA
YIELD refers to the income paid by the fund over a given period. Yields for
money market funds are usually for seven-day periods, expressed as annual
percentage rates. A yield that assumes income earned is reinvested or
compounded is called an effective yield. The chart above shows the fund's
current seven-day yield at quarterly intervals over the past year. If the
adviser had not reimbursed certain portfolio expenses during the periods
shown, the yields would have been lower. You can compare these yields to
the average U.S. Treasury money market fund and the average bank money
market deposit account (MMDA). The MMDA average is supplied by BANK RATE
MONITOR,(Trademark) at month end.
A MONEY MARKET FUND'S TOTAL RETURNS AND YIELDS WILL VARY, AND REFLECT PAST
RESULTS RATHER THAN PREDICT FUTURE PERFORMANCE.
COMPARING
PERFORMANCE
There are some important
differences between a bank
money market deposit
account (MMDA) and a
money market fund. First, the
U.S. government neither
insures nor guarantees a
money market fund. In fact,
there is no assurance that a
money market fund will
maintain a $1 share price.
Second, a money market
fund returns to its
shareholders income earned
by the fund's investments
after expenses. This is in
contrast to banks, which set
their MMDA rates periodically
based on current interest
rates, competitors' rates, and
internal criteria.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Leland Barron,
Portfolio Manager of Spartan U.S.
Treasury Money Market Fund
Q. LELAND, THERE'S BEEN A LOT OF ACTIVITY IN THE MONEY MARKETS IN RECENT
MONTHS. CAN YOU BRING US UP TO DATE?
A. Sure, but let me give you some context first. During the first six
months of the period - meaning last summer and into the fall - long-term
rates were still falling, as they had been for several years. Short-term
rates, meanwhile, were trading in a narrow range around 3%. Lower interest
rates tend to encourage economic expansion, in the form of increased
housing activity, industrial production, higher capacity utilization and an
improving employment picture. All that's fine, even desirable - until the
pace of expansion quickens to the point where inflation becomes a threat.
That's where we were on February 4, 1994, when the Federal Reserve felt
that monetary policy was too stimulative for current business conditions,
and decided to increase the federal funds rate by a quarter-point.
Successive quarter-point increases followed in March and April, and finally
a half-point increase in May, brought the benchmark rate to 4.25%. Since
then, short-term rates remained stable during the period.
Q. HOW DID YOU RESPOND TO CHANGING CONDITIONS?
A. Most observers, myself included, entered 1994 assuming that a rate
increase was inevitable. What surprised us was the timing. Had I known the
Fed was going to act so soon, I might have lowered the fund's average
maturity sooner than I did; a shorter average maturity would have given me
more flexibility to respond to rising rates. The fund's maturity was 86
days at the end of January, but over the next two months, I gradually
reduced the average maturity to around 50 days. Then in mid July, as rates
stabilized, I began extending it again, reaching 65 days by the end of
July.
Q. HOW DID THE FUND PERFORM?
A. The fund's seven-day yield at the end of the period was 3.87%, up from
2.65% a year ago. The total return for the year ended July 31, 1994 was
2.99%. That beat the average total return of 2.84% during the same period
for all U.S. Treasury Money Market Funds, according to IBC/Donoghue.
Q. WHAT'S THE OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. The Fed has to decide if expansion is slowing, only pausing to catch its
breath, or continuing at an unacceptable rate - and adjust monetary policy
accordingly. I continue to believe that short-term rates may head even
higher in the months ahead, possibly reaching 5% by year-end. Given that
possibility, I'll likely preserve the fund's average maturity in the
neutral range, somewhere between the mid-50s and mid-60s. That way, if the
Fed moves rates higher, I can respond; and if not,
I won't have missed out on the higher returns that can come with investing
in longer-term issues.
FUND FACTS
GOAL: income and stability by
investing in money market
investments issued and
guaranteed by the U.S.
government
START DATE: January 5, 1988
SIZE: as of July 31, 1994,
more than $1.5 billion
MANAGER: Leland Barron,
since January 1991; also
manages Fidelity U.S.
Government Reserves, since
January 1991; and Spartan
U.S. Government Money
Market Fund, since February
1990; joined Fidelity in 1981
(checkmark)
WORDS TO KNOW
AVERAGE MATURITY: The
average maturity of debt
securities in a fund, weighted
by dollar amount. When the
average maturity is short, the
fund manager believes
interest rates will rise. When
the average maturity is long,
the fund manager is expecting
rates to fall. When the
average maturity is neutral,
the fund manager wants to
have the flexibility to respond
to rising rates, while still
capturing a portion of the
higher yields available from
issues with longer maturities.
DISCOUNT RATE: The interest
rate the Federal Reserve
charges member banks for
loans.
FEDERAL FUNDS RATE: The
interest rate banks charge
each other for overnight
loans.
FEDERAL RESERVE: The
system designed to regulate
the U.S. monetary and
banking system. If the Fed
tightens the money supply, it
decreases the amount of
money available to the
banking system, which
generally causes interest
rates to rise.
MATURITY: The amount of time
remaining until a debt security
is scheduled to be redeemed.
TREASURY OBLIGATION: Debt
security issued directly by the
U.S. government. Payment of
principal and interest is
guaranteed.
INVESTMENT CHANGES
MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
7/31/94 1/31/94 7/31/93
0 - 30 27 26 33
31 - 90 45 37 50
91 - 180 28 24 17
181 - 397 0 13 0
WEIGHTED AVERAGE MATURITY
7/31/94 1/31/94 7/31/93
Spartan U.S. Treasury
Money Market Fund 65 days 86 days 53 days
Average 100% U.S.
Treasury Money
Market Fund* 40 days 58 days 58 days
ASSET ALLOCATION
AS OF JULY 31, 1994 AS OF JANUARY 31, 1994
Row: 1, Col: 1, Value: 58.0
Row: 1, Col: 2, Value: 42.0
Row: 1, Col: 1, Value: 50.0
Row: 1, Col: 2, Value: 50.0
U.S. Treasury
bills 58%
U.S. Treasury
notes 42%
U.S. Treasury
bills 50%
U.S. Treasury
notes 50%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS JULY 31, 1994
Showing Percentage of Total Value of Investments
U.S. TREASURY OBLIGATIONS - 100.0%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
U.S. TREASURY BILLS - 58.1%
8/18/94 3.56% $ 142 $ 142
8/18/94 4.25 50,000 49,901
8/25/94 3.23 3,710 3,702
8/25/94 3.24 50,000 49,894
8/25/94 3.35 1,383 1,380
8/25/94 3.67 744 742
9/1/94 4.19 35,000 34,875
9/8/94 3.89 5,576 5,554
9/15/94 4.25 6,499 6,465
9/15/94 4.28 23,006 22,884
9/15/94 4.38 2,969 2,953
9/22/94 3.88 1,698 1,689
9/22/94 4.22 146,560 145,675
9/29/94 4.26 2,484 2,467
9/29/94 4.49 13,730 13,631
10/6/94 4.31 81,170 80,538
10/6/94 4.36 3,495 3,467
10/6/94 4.38 50,000 49,603
10/13/94 4.30 77,889 77,219
10/13/94 4.38 1,067 1,058
10/20/94 4.27 6,115 6,058
10/20/94 4.57 39,046 38,656
10/27/94 4.39 30,260 29,943
10/27/94 4.45 578 572
11/3/94 4.45 35,000 34,598
11/17/94 4.70 25,000 24,655
11/17/94 4.95 2,842 2,801
12/1/94 4.53 5,109 5,032
12/8/94 4.59 87,605 86,196
12/15/94 4.60 15,000 14,745
12/22/94 4.68 823 808
12/22/94 4.80 6,647 6,523
1/19/95 4.87 3,498 3,419
807,845
U.S. TREASURY NOTES - 41.9%
8/15/94 3.33 1,920 1,922
8/15/94 3.82 5,184 5,190
8/15/94 3.85 5,157 5,163
8/15/94 3.93 1,630 1,635
8/15/94 3.94 51,160 51,241
8/15/94 3.95 50,000 50,164
8/15/94 4.23 10,000 10,031
8/15/94 4.40 741 742
8/15/94 4.80 40,000 40,116
8/31/94 4.16 1,343 1,343
U.S. TREASURY OBLIGATIONS - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
U.S. TREASURY NOTES - CONTINUED
9/30/94 4.10% $ 1,858 $ 1,858
9/30/94 4.29 32,000 32,210
9/30/94 4.33 62,640 62,687
10/15/94 4.39 18,282 18,462
10/15/94 4.40 40,000 40,391
10/15/94 4.44 7,793 7,868
10/15/94 4.45 2,440 2,464
10/31/94 4.43 15,000 14,988
10/31/94 4.58 59,566 59,497
11/15/94 4.57 2,833 2,888
11/15/94 4.58 52,513 52,705
11/15/94 4.59 30,000 30,583
11/15/94 4.60 9,883 10,027
11/15/94 4.61 653 659
11/15/94 4.62 11,098 11,207
11/15/94 4.73 50,000 50,954
11/30/94 4.62 16,615 16,610
583,605
TOTAL INVESTMENTS - 100% $ 1,391,450
Total Cost for Income Tax Purposes $ 1,391,450
INCOME TAX INFORMATION
At July 31, 1994 the fund had a capital loss carryforward of approximately
$313,000 of which $27,000 and $286,000 will expire on July 31, 2001 and
2002, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) JULY 31, 1994
1.ASSETS 2. 3.
4.Investment in securities, at value (Note 1) - See 5. $ 1,391,450
accompanying schedule
6.Cash 7. 1,127
8.Receivable for investments sold 9. 145,154
10.Interest receivable 11. 19,306
12. 13.TOTAL ASSETS 14. 1,557,037
15.LIABILITIES 16. 17.
18.Dividends payable $ 42 19.
20.Accrued management fee 594 21.
22. 23.TOTAL LIABILITIES 24. 636
25.26.NET ASSETS 27. $ 1,556,401
28.Net Assets consist of: 29. 30.
31.Paid in capital 32. $ 1,556,583
33.Accumulated net realized gain (loss) on investments 34. (182)
35.36.NET ASSETS, for 1,556,583 shares outstanding 37. $ 1,556,401
38.39.NET ASSET VALUE, offering price and redemption 40. $1.00
price per share ($1,556,401 (divided by) 1,556,583 shares)
</TABLE>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED JULY 31, 1994
41.42.INTEREST INCOME 43. $ 54,341
44.EXPENSES 45. 46.
47.Management fee (Note 2) $ 8,799 48.
49.Non-interested trustees' compensation 10 50.
51. Total expenses before reductions 8,809 52.
53. Expense reductions (Note 3) (1,602) 7,207
54.55.NET INTEREST INCOME 56. 47,134
57.58.NET REALIZED GAIN (LOSS) ON INVESTMENTS 59. (286)
(NOTE 1)
60.61.NET INCREASE IN NET ASSETS RESULTING FROM 62. $ 46,848
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED JULY 31,
1994 1993
63.INCREASE (DECREASE) IN NET ASSETS
64.Operations $ 47,134 $ 61,036
Net interest income
65. Net realized gain (loss) (286) (27)
66. 67.NET INCREASE (DECREASE) IN NET ASSETS 46,848 61,009
RESULTING FROM OPERATIONS
68.Dividends to shareholders from net interest income (47,134) (61,036)
69.Share transactions at net asset value of $1.00 per 1,347,224 1,519,444
share
Proceeds from sales of shares
70. Reinvestment of dividends from net interest income 44,987 58,149
71. Cost of shares redeemed (1,584,846) (2,303,189)
72. Net increase (decrease) in net assets resulting (192,635) (725,596)
from
share transactions
73. 74.TOTAL INCREASE (DECREASE) IN NET ASSETS (192,921) (725,623)
75.NET ASSETS 76. 77.
78. Beginning of period 1,749,322 2,474,945
79. End of period $ 1,556,401 $ 1,749,322
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
80. YEARS ENDED JULY 31, SEVEN MONTH YEAR
S ENDED
ENDED DECEMBER 31,
JULY 31,
81. 1994 1993 1992 1991 1990 1989
82.SELECTED PER-SHARE DATA
83.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period
84.Income from .030 .028 .046 .069 .044 .080
Investment
Operations
Net interest income
85. Dividends from net (.030) (.028) (.046) (.069) (.044) (.080)
interest income
86.Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period
87.TOTAL RETURN B 2.99% 2.87% 4.70% 7.12% 4.51% 8.31%
88.RATIOS AND SUPPLEMENTAL
DATA
89.Net assets, end of $ 1,556 $ 1,749 $ 2,475 $ 2,696 $ 364 $ 115
period (in millions)
90.Ratio of expenses to .45% .42% .25% .06% .33%A .63%
average net
assets C
91.Ratio of expenses to .55% .55% .55% .56% .76%A .91%
average net assets
before expense
reductions C
92.Ratio of net interest 2.94% 2.85% 4.61% 6.60% 7.79%A 8.01%
income to average
net assets
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ACCOUNT CLOSEOUT FEE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED. THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN.
C SEE NOTE 3 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended July 31, 1994
1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan U.S. Treasury Money Market Fund (the fund) is registered under the
Investment Company Act of 1940, as amended (the 1940 Act), as an open-end
management investment company organized as a Massachusetts business trust
and is authorized to issue an unlimited number of shares. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. As permitted under Rule 2a-7 of the 1940 Act, and
certain conditions therein, securities are valued initially at cost and
thereafter assume a constant amortization to maturity of any discount or
premium.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INTEREST INCOME. Interest income, which includes amortization of premium
and accretion of original issue discount, is accrued as earned.
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. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses except the compensation of the
non-interested Trustees and certain exceptions such as interest, taxes,
brokerage commissions and extraordinary expenses. FMR receives a fee that
is computed daily at an annual rate of .55% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. For
the period, FMR or its affiliates collected certain transaction fees from
shareholders which aggregated $74,000.
SUB-ADVISER FEE. As the fund's investment sub-adviser, FMR Texas Inc., a
wholly owned subsidiary of FMR, receives a fee from FMR of 50% of the
management fee payable to FMR. The fee is paid prior to any voluntary
expense reimbursements which may be in effect, and after reducing the fee
for any payments by FMR pursuant to the fund's Distribution and Service
Plan.
3. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .45% of average net assets. For the
period, the reimbursement reduced the expenses by $1,602,000.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of
Spartan U.S. Treasury
Money Market Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statement of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of Spartan
U.S. Treasury Money Market Fund at July 31, 1994, and the results of its
operations for the year then ended, the changes in its net assets for each
of the two years then ended, and its financial highlights for the periods
indicated, in conformity with generally accepted accounting principles.
These financial statements and financial highlights (hereafter referred to
as "financial statements") are the responsibility of the Fund's management;
our responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial statements
in accordance with generally accepted auditing standards which require that
we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that
our audits, which included confirmation of securities at July 31, 1994 by
correspondence with the custodian and brokers, provide a reasonable basis
for the opinion expressed above.
PRICE WATERHOUSE
Dallas, Texas
August 26, 1994
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
Page 21 = BLANK
Do NOT strip-in this type
Page 22 = BLANK
Do NOT strip-in this type
Page 23 = BLANK
Do NOT strip-in this type
INVESTMENT ADVISER
(registered trademark)
Fidelity Management & Research
Company
Boston, MA
SUB-ADVISER
FMR Texas Inc.
Irving, TX
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Leland Barron, Vice President
Fred L. Henning, Jr., Vice President
Thomas D. Maher, Assistant
Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Arthur S. Loring, Secretary
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Morgan Guaranty Trust Co. of New York
New York, NY
FIDELITY'S TAXABLE
MONEY MARKET FUNDS
Fidelity Cash Reserves
Fidelity Daily Income Trust
Fidelity U.S. Government Reserves
Spartan Money Market Fund
Spartan U.S. Government
Money Market Fund
Spartan U.S. Treasury
Money Market Fund
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774 (8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE