SLAM GOVERNMENT'S
PROSPECTUS
PAGE COUNT
IS CURRENTLY
14 PAGES
(PRE-ANNUAL PAGES)
U.S. TREASURY OBLIGATIONS - 39.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS - 27.6%
12/15/94 4.60% $ 22,000,000 $ 21,961,543
1/19/95 4.96 13,000,000 12,914,359
1/26/95 4.96 9,000,000 8,932,240
2/16/95 5.12 9,000,000 8,903,943
5/4/95 5.68 5,000,000 4,881,933
8/24/95 5.48 10,000,000 9,615,778
67,209,796
U.S. TREASURY NOTES - 12.3%
1/31/95 3.63 1,000,000 1,000,919
2/15/95 5.29 8,000,000 8,037,152
2/15/95 5.31 3,000,000 3,013,811
2/28/95 5.03 3,000,000 2,991,392
2/28/95 5.41 4,000,000 3,984,703
4/30/95 5.54 8,000,000 7,941,099
5/15/95 5.66 3,000,000 3,000,302
29,969,378
TOTAL U.S. TREASURY OBLIGATIONS 97,179,174
REPURCHASE AGREEMENTS - 60.1%
MATURITY
AMOUNT
With First Boston Corporation:
At 5.10%, dated 10/18/94 due 12/30/94:
U.S. Treasury Obligations
(principal amount $8,160,000)
7.50% to 12%, 11/15/99 to 11/15/16 $ 8,082,733 8,000,000
In a joint trading account
(U.S. Treasury Obligations)
dated 11/30/94, due 12/1/94
(Notes 2 and 3)
At 5.71% 89,014,110 89,000,000
At 5.74% 49,396,873 49,389,000
TOTAL REPURCHASE AGREEMENTS 146,389,000
TOTAL INVESTMENTS -100% $ 243,568,174
Total Cost for Income Tax Purposes $ 243,568,174
INCOME TAX INFORMATION
At November 30, 1994 the fund had a capital loss carryforward of
approximately $85,400 of which $29,000, $8,400 and $48,000 will expire on
November 30, 1999, 2001 and 2002, respectively.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
NOVEMBER 30, 1994
1.ASSETS 2. 3.
4.Investment in securities, at value (including repurchase agreements of $146,389,000) - 5. $ 243,568,174
See accompanying schedule
6.Cash 7. 255,011
8.Interest receivable 9. 439,518
10. 11.TOTAL ASSETS 12. 244,262,703
13.LIABILITIES 14. 15.
16.Dividends payable $ 32,775 17.
18.Accrued management fee 89,506 19.
20. 21.TOTAL LIABILITIES 22. 122,281
23.24.NET ASSETS 25. $ 244,140,422
26.Net Assets consist of: 27. 28.
29.Paid in capital 30. $ 244,173,435
31.Accumulated net realized gain (loss) on investments 32. (33,013)
33.34.NET ASSETS, for 244,173,435 shares outstanding 35. $ 244,140,422
36.37.NET ASSET VALUE, offering price and redemption price per share 38. $1.00
($244,140,422 (divided by) 244,173,435 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED NOVEMBER 30, 1994
39.40.INTEREST INCOME 41. $ 15,346,160
42.EXPENSES 43. 44.
45.Management fee $ 1,704,235 46.
47.Non-interested trustees' compensation 1,078 48.
49. 50.TOTAL EXPENSES 51. 1,705,313
52.53.NET INTEREST INCOME 54. 13,640,847
55.56.NET REALIZED GAIN (LOSS) ON INVESTMENTS 57. (48,217)
58.59.NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS 60. $ 13,592,630
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED NOVEMBER 30,
1994 1993
61.INCREASE (DECREASE) IN NET ASSETS
62.Operations $ 13,640,847 $ 23,520,412
Net interest income
63. Net realized gain (loss) (48,217) (8,438)
64. 65.NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 13,592,630 23,511,974
66.Dividends to shareholders from net interest income (13,640,847) (23,520,412)
67.Share transactions at net asset value of $1.00 per share 513,135,378 802,949,416
Proceeds from sales of shares
68. Reinvestment of dividends from net interest income 12,343,246 19,518,253
69. Cost of shares redeemed (804,168,405) (1,384,543,667)
70. Net increase (decrease) in net assets and shares resulting from share transactions (278,689,781) (562,075,998)
71. 72.TOTAL INCREASE (DECREASE) IN NET ASSETS (278,737,998) (562,084,436)
73.NET ASSETS 74. 75.
76. Beginning of period 522,878,420 1,084,962,856
77. End of period $ 244,140,422 $ 522,878,420
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1994
1. SIGNIFICANT ACCOUNTING POLICIES.
State and Local Asset Management Series: Government Money Market Portfolio
(the fund) is a fund of Institutional Investors Trust (the trust) and is
authorized to issue an unlimited number of shares. 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. 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. OPERATING POLICIES.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of FMR, may transfer uninvested cash balances into one or more
joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
3. JOINT TRADING ACCOUNT.
At the end of the period, the fund 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 repurchase agreements were dated November
30, 1994 and due December 1, 1994. The maturity values of the joint trading
account investments were $89,014,110 at 5.71% and $49,396,873 at 5.74%. The
investments in repurchase agreements through the joint trading account are
summarized as follows:
MAXIMUM
AMOUNT AGGREGATE AGGREGATE AGGREGATE
NO. OF WITH ONE PRINCIPAL MATURITY MARKET COUPON MATURITY
DEALERS DEALER AMOUNT OF AMOUNT OF VALUE OF RATES OF DATES OF
OR BANKS OR BANK AGREEMENTS AGREEMENTS COLLATERAL COLLATERAL COLLATERAL
At 5.71% 10 44.6% $4,062,000,000 $4,062,643,997 $4,146,229,428 0%-15.75%
12/8/94-8/15/23
At 5.74% 5 33.6% $595,000,000 $595,094,843 $607,194,808 0%-15.75%
1/19/95-8/15/23
4. FEES AND OTHER TRANSACTIONS WITH
AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management &
Research Company (FMR) pays all expenses, including the cost of providing
shareholder services, 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 .43% of the fund's average net assets.
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.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $4,122 for the
period.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. FOR MORE
INFORMATION ON ANY FIDELITY FUND INCLUDING
CHARGES AND EXPENSES, CALL 1-800-343-9222 FOR A FREE PROSPECTUS. READ IT
CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Fidelity Institutional
Investors Trust: State and Local Asset Management Series: Government Money
Market Portfolio:
We have audited the accompanying statement of assets and liabilities of
Fidelity Institutional Investors Trust: State and Local Asset Management
Series: Government Money Market Portfolio, including the schedule of
portfolio investments, as of November 30, 1994, and the related statement
of operations for the year then ended, the statements of changes in net
assets for each of the two years in the period then ended, and the
financial highlights for each of the seven years in the period then ended
and the period August 27,1987 (commencement of operations) to November 30,
1987. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of November 30 ,1994 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Institutional Investors Trust: State and Local Asset Management
Series: Government Money Market Portfolio as of November 30, 1994, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the
financial highlights for each of the seven years in the period then ended,
and the period August 27,1987 (commencement of operations) to November 30,
1987 in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Dallas, Texas
January 3, 1995
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