FIDELITY HEREFORD STREET TRUST, N-30D, 1994-12-12

FIDELITY HEREFORD STREET TRUST
N-30D, 1994-12-12

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SPARTAN

(registered trademark)
(registered trademark)
U.S. GOVERNMENT
MONEY MARKET
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1994
CONTENTS

PRESIDENT'S MESSAGE 3 Ned Johnson on investing straegies.

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 value.

FINANCIAL STATEMENTS 12 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 16 Footnotes to the financial
statements.

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. FOR MORE
INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL
1-800-544-8888

FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

DEAR SHAREHOLDER:
The year so far has been 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, and bond
prices fell, as well. Although there was a late-summer stock rally, no one
can know for sure what will happen in the months ahead.
We do know, however, that market ups and downs 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.SM
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 voluntarily
reimbursed certain fund expenses during the periods shown, the total
returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND

Spartan U.S. Government
Money Market Fund 2.02% 3.52% 25.48%

Consumer Price Index 1.42% 2.61% 17.35%

Average Government
Money Market Fund 1.88% 3.22% 22.24%

CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, six months, one year, or since the fund started on February
5, 1990. 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 government
money market fund's total returns. This average currently reflects the
performance of 213 government 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 OCTOBER 31, 1994 PAST 1 LIFE OF
YEAR FUND

Spartan U.S. Government
Money Market Fund 3.52% 4.91%

Consumer Price Index 2.61% 3.42%

Average Government
Money Market Fund 3.22% 4.39%

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>
10/31/93 1/31/94 4/30/94 7/31/94 10/31/94

Spartan U.S. Government 2.77% 2.82% 3.34% 3.93% 4.58%
Money Market Fund

Average Government 2.54% 2.55% 2.99% 3.64% 4.21%
Money Market Fund

2.37% 2.30% 2.31% 2.39% 2.54%
MMDA

</TABLE>

Row: 1, Col: 1, Value: 2.77
Row: 1, Col: 2, Value: 2.54
Row: 1, Col: 3, Value: 2.37
Row: 2, Col: 1, Value: 2.82
Row: 2, Col: 2, Value: 2.55
Row: 2, Col: 3, Value: 2.3
Row: 3, Col: 1, Value: 3.34
Row: 3, Col: 2, Value: 2.99
Row: 3, Col: 3, Value: 2.31
Row: 4, Col: 1, Value: 3.92
Row: 4, Col: 2, Value: 3.64
Row: 4, Col: 3, Value: 2.31
Row: 5, Col: 1, Value: 4.58
Row: 5, Col: 2, Value: 4.21
Row: 5, Col: 3, Value: 2.54
Spartan U.S.
Government
Money Market
Fund
Average
Government
Money Market
Fund
MMDA
5% -
4% -
3% -
2% -
1% -
0%
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 fund expenses during the periods shown,
the 7-day yields would have been 2.67% and 2.72% for the periods ended
October 31, 1993 and January 1, 1994, respectively. They are compared to
similar yields for the average government money market fund and the average
bank money market deposit account (MMDA). Figures for the average
government money market fund are from IBC/Donoghue. The MMDA average is
supplied by BANK RATE MONITOR.(Trademark) (Both figures are those available
closest to 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.
Government Money Market Fund
Q. LELAND, WHAT HAS HAPPENED TO SHORT-TERM INTEREST RATES DURING THE PAST
SIX MONTHS?
A. The Federal Reserve Board raised the benchmark Federal funds rate - the
rates banks charge each other for overnight loans - twice during the
period. It boosted it 50 basis points in May and another 50 basis points in
August. Most money market yields climbed slightly more than that. For
example, the yield on three-month Treasury bills climbed about 1.25
percentage points over the period to 5.19% on October 31, 1994.
Essentially, the rate increases implemented by the Fed were a result of the
strong growth exhibited by the economy. The Gross Domestic Product grew at
a 4.1% annual rate during the second quarter of 1994 and a 3.4% rate during
the third quarter. That is well above the 2.5% long-term non-inflationary
growth rate which the Fed feels is more appropriate. Thus, they have been
raising rates to prevent inflationary pressures from becoming embedded in
the economy.
Q. HOW DID YOU MANAGE THE FUND IN THAT ENVIRONMENT OF RISING SHORT-TERM
RATES?
A. The fund's average maturity can go as high as 90 days, but it ranged
from around 40 to 50 days during the period. And most of the time it was
between 45 and 48 days. That maturity structure allowed the fund to invest
in securities with high current yields while maintaining the flexibility to
adjust to higher yields when the Fed increased interest rates.
Q. WITH RATES RISING, WHY DIDN'T YOU SHORTEN THE FUND'S AVERAGE MATURITY
MORE?
A. Unless the Fed is in an extremely aggressive tightening posture you
wouldn't want to shorten the average maturity too much. There were times
when the yields of three-month and six-month money market securities rose
to levels that were attractive even when I factored in the potential for a
rate increase. I was generally able to take advantage of those
opportunities to buy these longer-term securities at good yield levels. As
a result, the fund picked up extra yield it would not get from shorter
alternatives and I think was adequately compensated for additional rate
increases. For example, we bought longer-term money market securities
before the Fed tightened in May and August-and short-term securities
declined after both of those interest rate hikes.
Q. HOW DID THE FUND PERFORM DURING THE PERIOD?
A. The fund's seven-day yield on October 31, 1994, was 4.58%, compared to
3.34% at the end of April. The increase primarily reflects the overall rise
in short-term interest rates. The fund's total return for the six months
ended October 31, 1994, was 2.02%. That compared to a total return of 1.88%
for the average U.S. government and agencies money market fund during the
period, according to IBC/Donoghue.
Q. WHAT DO YOU THINK IS NEXT FOR THE MONEY MARKETS AND THE FUND?
A. The unemployment rate is down to 5.9%, and consumers have been spending
more money. Industrial production is currently strong and so are exports.
As a result, I expect that the Fed could continue to raise rates during the
coming months as the economy continues to grow. I plan to maintain the
fund's 40- to 50-day average maturity so that it will be liquid enough to
capture higher yields if rates climb. But I will buy longer-term money
market securities if investors overreact to the threat of higher rates and
yields rise to attractive levels.

FUND FACTS
GOAL: seeks high current
income while maintaining a
stable share price by investing
in high quality, short-term
securities
START DATE: February 5, 1990
SIZE: as of October 31, 1994,
more than $734 million
MANAGER: Leland Barron,
since July 1991; manager,
Fidelity U.S. Government
Reserves, since July 1991 and
Spartan U.S. Treasury Money
Market Fund, since January
1991; joined
Fidelity in 1981
(checkmark)

MONEY MARKETS AND
DERIVATIVES:
The word "derivatives" covers
a wide range of financial
agreements, of varying
degrees of complexity, that
have market values based on
security or market indices. All
"derivative" securities in
Fidelity's money market funds
are designed to have the price
characteristics of typical
money market securities.
During the recent Federal
Reserve Board interest rate
increases, all Fidelity money
market holdings performed as
designed and the funds
maintained a stable share
price of $1.00.
The more complex of these
instruments, such as floating
rate notes with unusual and
complex floating rate
formulas, frequently have too
much price volatility to be
appropriate investments for
money market funds. Many of
them do not offer the degree
of price stability Fidelity
believes is required in order
for its funds to maintain a
stable $1.00 share price.
Therefore, despite their
frequent higher yields at the
time they are sold, Fidelity
money market funds have not
purchased these volatile
securities. While this may
sometimes have caused
Fidelity money market funds
to have lower gross yields
than certain other funds,
Fidelity believes its investors
value prudence as well as
performance.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/94 4/30/94 10/31/93

0 - 30 61 65 58

31 - 90 18 11 6

91 - 180 14 23 18

181 - 397 7 1 18

WEIGHTED AVERAGE MATURITY
10/31/94 4/30/94 10/31/93

Spartan U.S. Government
Money Market Fund 47 days 48 days 70 days

Average Government
Money Market Fund* 41 days 43 days 61 days

ASSET ALLOCATION
AS OF OCTOBER 31, 1994 AS OF APRIL 30, 1994

Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 3.0
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 4, Value: 2.0
Row: 1, Col: 1, Value: 39.0
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 60.0
Row: 1, Col: 4, Value: 0.0
Federal agency
issues 56%
U.S. Treasury
obligations 3%
Repurchase
agreements 40%
Other 1%
Federal agency
issues 39%
U.S. Treasury
obligations 1%
Repurchase
agreements 60%
Other -
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1994 (UNAUDITED)

Showing Percentage of Total Value of Investments

FEDERAL AGENCIES - 56.6%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPONS - 3.7%
11/1/94 4.70% $ 9,000,000 $ 9,000,000 313993QU
5/1/95 4.85 19,000,000 18,994,844 31393RQ2
27,994,844
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 8.9%
11/1/94 4.80 22,000,000 21,992,072 313390ZC
11/1/94 5.33 9,000,000 8,986,626 313389U9
12/8/94 4.76 9,000,000 8,977,856 3133893S
2/16/95 5.11 7,000,000 6,895,972 567995JW
4/24/95 5.80 20,000,000 19,454,800 567995KB
66,307,326
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 2.7%
11/28/94 4.18 10,000,000 9,969,625 355993RM
2/15/95 5.11 10,000,000 9,852,778 355993WD
19,822,403
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS - 9.7%
11/1/94 4.82 43,000,000 43,000,000 31364A2L
11/1/94 5.35 30,000,000 30,000,000 9931287F
73,000,000
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 26.5%
11/29/94 4.87 22,000,000 21,918,722 995009QE
12/1/94 4.85 35,000,000 34,862,042 995009TF
12/29/94 4.99 30,000,000 29,764,133 9950093K
1/3/95 5.04 11,000,000 10,905,290 995009YD
1/6/95 5.05 11,000,000 10,900,780 995009YB
1/17/95 5.03 11,000,000 10,884,714 9950094H
1/18/95 5.03 8,000,000 7,915,067 9950094C
3/1/95 5.12 14,000,000 13,767,133 9950099P
3/6/95 5.10 11,000,000 10,810,174 9950099W
3/20/95 5.36 10,000,000 9,798,450 995021UR
3/31/95 5.60 11,000,000 10,750,208 995021VU
4/5/95 5.74 11,000,000 10,735,725 9950212A
4/18/95 5.66 16,000,000 15,589,333 9950214C
198,601,771
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 5.1%
11/1/94 5.53 26,000,000 26,000,000 863990PS
6/30/95 5.48 12,400,000 12,400,000 863990PT
38,400,000
TOTAL FEDERAL AGENCIES 424,126,344
U.S. TREASURY OBLIGATIONS - 2.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS
8/24/95 5.47% $ 23,000,000 $ 22,018,513 9931348K
MEDIUM-TERM NOTES (A) - 0.9%
EXPORT-IMPORT BANK, U.S. (AS GUARANTOR FOR KA LEASING, LTD.) (B)
11/15/94 5.56 6,402,401 6,402,401 530993AA
REPURCHASE AGREEMENTS - 39.6%
MATURITY
AMOUNT
With Bear Stearns & Co., Inc.:
At 4.80%, dated 10/20/94 due 11/1/94:
U.S. Government Obligations
(principal amount $21,107,003)
5.123%, 4/1/34 $ 20,032,000 20,000,000 07399CLU
With First Boston Corporation:
At 4.80%, dated 10/31/94 due 11/14/94:
U.S. Government Obligations
(principal amount $37,345,223)
4.958% to 8.50%, 10/1/98 to 6/1/28 36,067,200 36,000,000 07399CLU
With Goldman Sachs & Co.:
At 4.80%, dated 10/20/94 due 11/14/94:
U.S. Government Obligations
(principal amount $36,791,608)
10%,10/21/23 36,120,000 36,000,000 38199MWN
With Lehman Government Securities:
At 4.85%, dated 10/24/94 due 11/14/94:
U.S. Government Obligations
(principal amount $30,909,595)
3.78% to 5.808%, 2/1/23 to 10/1/23 30,084,875 30,000,000 58899A2P
With Paine Webber, Inc.:
At 5.125%, dated 10/31/94 due 12/6/94
U.S. Government Obligations
(principal amount $20,205,000)
4.875, 10/15/18 18,090,240 17,998,000 69599K9M
In a joint trading account
(U.S. Government Obligations)
dated 10/31/94, due 11/1/94
(Notes 2 and 3)
At 4.84% 156,703,076 156,682,000 99799N9J
TOTAL REPURCHASE AGREEMENTS 296,680,000
TOTAL INVESTMENTS - 100% $ 749,227,258
Total Cost for Income Tax Purposes $ 749,227,258

LEGEND
(a) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end. The due date on these types of
securities reflects the next interest rate reset date or when applicable,
the final maturity date.
(b) 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 this security amounted to $6,402,401 or 0.9% of net
assets.
INCOME TAX INFORMATION
At April 30, 1994 the fund had a capital loss carryforward of approximately
$81,000
of which $20,000, $10,000 and $51,000 will expire on April 30, 1999, 2001
and 2002, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1994 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 749,227,258
agreements of $296,680,000) - See accompanying
schedule

Cash 2,958,184

Interest receivable 1,754,517

TOTAL ASSETS 753,939,959

LIABILITIES

Payable for investments purchased $ 18,994,844

Dividends payable 38,115

Accrued management fee 281,082

TOTAL LIABILITIES 19,314,041

NET ASSETS $ 734,625,918

Net Assets consist of:

Paid in capital $ 734,707,304

Accumulated net realized gain (loss) on investments (81,386)

NET ASSETS, for 734,707,304 shares outstanding $ 734,625,918

NET ASSET VALUE, offering price and redemption price per $1.00
share ($734,625,918 (divided by) 734,707,304 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED OCTOBER 31, 1994 (UNAUDITED)

INTEREST INCOME $ 16,921,561

EXPENSES

Management fee $ 1,714,957

Non-interested trustees' compensation 2,177

TOTAL EXPENSES 1,717,134

NET INTEREST INCOME 15,204,427

NET REALIZED GAIN (LOSS) ON INVESTMENTS -

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 15,204,427

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER APRIL 30,
31, 1994 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 15,204,427 $ 22,752,898
Net interest income

Net realized gain (loss) - (51,505)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 15,204,427 22,701,393
FROM OPERATIONS

Dividends to shareholders from net interest income (15,204,427) (22,752,898)

Share transactions at net asset value of $1.00 per share 306,640,833 665,902,289
Proceeds from sales of shares

Reinvestment of dividends from net interest income 14,631,075 21,953,462

Cost of shares redeemed (366,941,250) (805,300,969)

Net increase (decrease) in net assets and shares (45,669,342) (117,445,218)
resulting from share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS (45,669,342) (117,496,723)

NET ASSETS

Beginning of period 780,295,260 897,791,983

End of period $ 734,625,918 $ 780,295,260

</TABLE>

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED APRIL 30, FEBRUARY 5, 1990
ENDED (COMMENCEMEN
OCTOBER 31, T
1994 OF OPERATIONS) TO
APRIL 30,

(UNAUDITED) 1994 1993 1992 1991 1990

SELECTED PER-SHARE DATA

Net asset value, beginning of
period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

Income from Investment Operations .020 .029 .032 .052 .076 .019
Net interest income

Less Distributions (.020) (.029) (.032) (.052) (.076) (.019)
From net interest income

Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000

TOTAL RETURN B 2.03% 2.89% 3.24% 5.33% 7.84% 1.94%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of period (000
omitted) $ 734,626 $ 780,295 $ 897,792 $ 1,411,348 $ 1,878,250 $ 49,339

Ratio of expenses to average net
assets .45% .45% .45% .40% .17% -
A

Ratio of expenses to average net
assets before .45% .54% .55% .55% .55% .55%A
expense reductions A

Ratio of net interest income to
average 3.98% 2.85% 3.25% 5.29% 7.34% 8.49%A
net assets A

</TABLE>

FINANCIAL HIGHLIGHTS
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1994 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan U.S. Government Money Market (the fund) is a fund of Fidelity
Hereford Street Trust (the trust) (formerly Fidelity Summer Street 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. At a special meeting of
the shareholders of the fund held on March 23, 1994, shareholders approved
an Agreement and Plan of Conversion and Termination (the Plan of
Conversion), providing for the conversion of the fund from a separate
series of a Massachusetts business trust, to a separate series of a
Delaware business trust, effective June 17, 1994. The individual investment
objective, policies and limitations of the fund remain the same.
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.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
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 SEC), 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
2. OPERATING POLICIES -
CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
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 October 31,
1994 and due November 1, 1994. The maturity value of the joint trading
account investment was $156,703,076 at 4.84%. The investments in repurchase
agreements through the joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING ACCOUNT
AT 4.84%
Number of Dealers or Banks 3
Maximum Amount With One Dealer or Bank $ 1,700,000,000
Aggregate Principal Amount of Agreements 2,413,600,000
Aggregate Maturity Amount of Agreements 2,413,924,662
Aggregate Market Value of Collateral 2,482,354,462
Coupon Rates of Collateral 3.48%-11.95%
Maturity Dates of Collateral 11/1/94-8/1/24

4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, 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 .45% of the
fund's average net assets.
To offset the cost of providing shareholder services, FMR or its affiliates
collect certain transaction fees from the fund's shareholders. For the
period, fees collected from shareholders amounted to $14,300.
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.
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
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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 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.
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3.
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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.
TO VISIT FIDELITY

For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East 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
90 Alhambra Plaza
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
8885 Ladue Road
Ladue, 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
4611 Sharon Road
Charlotte, 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
215 South State 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

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 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE

SPARTAN

(registered trademark)
(registered trademark)
MONEY MARKET
FUND

SEMIANNUAL REPORT
OCTOBER 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 18 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.

NOTES 22 Notes to the financial statements.

FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE

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 OCTOBER 31, 1994 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan Money Market 2.14% 3.77% 29.30% 39.01%

Consumer Price Index 1.42% 2.61% 19.03% 23.45%

Average All Taxable
Money Market Fund 1.96% 3.38% 26.21% 34.66%

CUMULATIVE TOTAL RETURNS reflect actual performance over a specific period
- - in this case, six months, one year, five years or since the fund started
on January 23, 1989. 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 all taxable
money market fund's total returns. This average currently reflects the
performance of 697 taxable 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 OCTOBER 31, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Money Market 3.77% 5.27% 5.87%

Consumer Price Index 2.61% 3.55% 3.73%

Average All Taxable
Money Market Fund 3.38% 4.76% 5.31%

3.01% 3.08% 3.58% 4.17% 4.75%
Spartan Money Market

Average All Taxable 2.66% 2.68% 3.15% 3.83% 4.40%
Money Market Fund

2.37% 2.30% 2.31% 2.39% 2.54%
MMDA

Row: 1, Col: 1, Value: 3.01
Row: 1, Col: 2, Value: 2.66
Row: 1, Col: 3, Value: 2.37
Row: 2, Col: 1, Value: 3.08
Row: 2, Col: 2, Value: 2.68
Row: 2, Col: 3, Value: 2.3
Row: 3, Col: 1, Value: 3.58
Row: 3, Col: 2, Value: 3.15
Row: 3, Col: 3, Value: 2.31
Row: 4, Col: 1, Value: 4.17
Row: 4, Col: 2, Value: 3.83
Row: 4, Col: 3, Value: 2.39
Row: 5, Col: 1, Value: 4.75
Row: 5, Col: 2, Value: 4.4
Row: 5, Col: 3, Value: 2.54
Spartan
Money Market
Average
All Taxable
Money Market
Fund
MMDA
5% -
4% -
3% -
2% -
1% -
0%
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
Fidelity had not reimbursed certain fund expenses, the 7-day yield would
have been 3.50% for the period ended April 30, 1994. They are compared to
similar yields for the average all taxable money market fund and the
average bank money market deposit account (MMDA). Figures for the average
general purpose money market fund are from IBC/Donoghue. The MMDA average
is supplied by BANK RATE MONITOR.(Trademark) (Both figures are those
available closest to 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 John Todd,
Portfolio Manager of Spartan Money Market Fund
Q. JOHN, HOW HAVE SHORT-TERM INTEREST RATES FLUCTUATED DURING THE PAST SIX
MONTHS?
A. Short-term rates climbed sharply during the period from April to
October. The Federal Reserve Board was in the initial phase of tightening
credit when the period began, and continued to boost short-term interest
rates throughout October. It boosted the Federal funds rate 50 basis points
in May and another 50 basis points in August, lifting the benchmark rate to
4.75%. Other money market rates moved up a bit more during the period: The
three-month Treasury bill rate climbed about 1.25 percentage points to
5.19% at the end of the period, and the yield on six-month Treasury bills
climbed about 1.30 percentage points to 5.72%.
Q. WHY DID RATES RISE SO SHARPLY?
A. The Fed was shifting away from the accommodative posture it had adopted
to combat sub-par economic growth. By early this year, it became evident to
the Fed that the economy was entering a period of stronger, broad-based
growth, and its easier money stance was no longer appropriate. The increase
in the Federal funds rate to 4.75% brought monetary policy back to a more
neutral position.
Q. HOW DID YOU MANAGE THE FUND IN THAT ENVIRONMENT?
A. In general, by reducing the fund's average maturity - I targeted the 45-
to 55-day range. I anticipated that rates would continue to move higher
since the Fed began to boost short-term interest rates back in February. As
short-term rates rise, a shorter average maturity allows the fund to
capture higher current market rates more quickly. However, in addition to
buying paper with shorter maturities, I also bought Treasuries and
government agency securities with longer maturities when I felt the
market's expectations for higher short-term rates were overdone.
Q. CAN YOU OFFER EXAMPLES?
A. Before the May and August Federal Open Market Committee meetings, the
market had priced in more severe Fed action than I thought was likely. As a
result, I purchased some long-dated securities prior to the meetings. In
each case, the market rallied following the actual tightening, and the fund
benefited from the higher yields locked in on its longer holdings.
Q. HOW DID THE FUND PERFORM?
A. On October 31, 1994, the fund's seven-day yield was 4.75%, compared to
3.58% on April 30, 1994. The rise in yield reflects higher short-term
interest rates. The fund's total return for the six months ended October
31, 1994 was 2.14%. That beat the average 1.96% total return for all
taxable money market funds tracked by IBC/Donoghue during the same period.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. The economy appears to be growing in a broad-based manner and has shown
impressive resilience in the face of significant increases in short-term
interest rates this year. I think the Fed will keep the pressure on
short-term rates until it sees solid evidence that the economy is slowing
to a more sustainable pace.

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/94 4/30/94 10/31/93

0 - 30 47 52 24

31 - 90 30 22 39

91 - 180 23 23 25

181 - 397 0 3 12

WEIGHTED AVERAGE MATURITY
10/31/94 4/30/94 10/31/93

Spartan Money Market
Fund 53 days 58 days 83 days

Average All Taxable
Money Market Fund* 42 days 45 days 64 days

ASSET ALLOCATION
AS OF OCTOBER 31, 1994 AS OF APRIL 30, 1994

Row: 1, Col: 1, Value: 56.0
Row: 1, Col: 2, Value: 35.0
Row: 1, Col: 3, Value: 8.0
Row: 1, Col: 4, Value: 2.0
Row: 1, Col: 1, Value: 41.0
Row: 1, Col: 2, Value: 43.0
Row: 1, Col: 3, Value: 12.0
Row: 1, Col: 4, Value: 4.0
Bank CDs,
BAs, TDs,
and notes 56%
Commercial
paper 35%
Government
securities 8%
Other 1%
Bank CDs,
BAs, TDs,
and notes 41%
Commercial
paper 43%
Government
securities 12%
Other 4%
* SOURCE: IBC/DONOGHUE'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1994 (UNAUDITED)

Showing Percentage of Total Value of Investments

BANKERS' ACCEPTANCES - 0.6%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS
Bank of Tokyo
3/15/95 5.62% $ 14,350 $ 14,057 0659934R
3/28/95 5.76 25,000 24,429 0659934S
Dai-Ichi Kangyo Bank, Ltd.
12/21/94 5.25 4,000 3,971 2338049L
TOTAL BANKERS' ACCEPTANCES 42,457
CERTIFICATES OF DEPOSIT - 28.4%
DOMESTIC CERTIFICATES OF DEPOSIT - 0.7%
Old Kent Bank & Trust Co.
2/21/95 5.25 7,000 7,000 679999DL
2/27/95 5.25 15,000 15,000 679999DN
PNC Bank, Ohio (Central Trust)
12/15/94 4.98 30,000 29,948 711990AA
51,948
CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.1%
Sanwa Bank, Ltd.
11/14/94 5.25 75,000 75,000 804999QM
4/7/95 5.87 7,000 7,000 804999QJ
82,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 20.9%
ABN-AMRO Bank
11/16/94 4.82 20,000 19,999 032993LJ
11/16/94 4.88 10,000 10,000 032993LA
2/27/95 5.17 20,000 20,002 032993LB
Bank of Montreal
12/6/94 5.26 50,000 49,997 0636719F
Bank of Nova Scotia
11/10/94 4.85 45,000 44,999 669991DM
11/10/94 4.85 5,000 5,000 669991DM
11/14/94 4.88 50,000 50,000 669991DK
11/15/94 4.93 50,000 50,000 669991DL
Bank of Tokyo
11/14/94 4.86 35,000 35,000 0659934G
11/15/94 4.90 45,000 45,000 0659934H
12/19/94 4.96 90,000 90,001 0659934J
Banque Nationale de Paris
11/4/94 4.80 10,000 10,000 055992NY
4/7/95 5.72 25,000 25,007 055992NU
4/13/95 5.75 25,000 25,002 055992NX
Canadian Imperial Bank of Commerce
11/9/94 5.00 25,000 25,000 136990EM
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Commerzbank, Germany
11/18/94 4.96% $ 25,000 $ 24,998 202990NP
4/14/95 5.73 20,000 20,000 202990NX
4/26/95 5.87 25,000 25,000 202990PC
Credit Lyonnais
11/1/94 5.02 55,000 55,000 227993SG
Dai-Ichi Kangyo Bank, Ltd.
12/21/94 5.22 25,000 25,001 2338049K
Dresdner Bank, A.G.
4/13/95 5.80 25,000 25,001 261990KC
Fuji Bank, Ltd.
12/15/94 5.15 50,000 50,000 35999CHV
12/16/94 5.20 5,000 4,999 35999CJA
Industrial Bank of Japan, Ltd.
11/15/94 4.92 70,000 70,000 4559907W
11/16/94 4.92 50,000 50,000 4559907Y
12/14/94 5.00 10,000 10,000 4559908B
Mitsubishi Bank, Ltd.
12/19/94 4.95 50,000 50,000 610998YA
12/30/94 5.00 90,000 90,000 610998YC
National Bank of Canada
3/20/95 5.50 45,000 45,000 633990EA
Rabobank Nederland, N.V.
12/22/94 4.00 6,000 5,997 216992JK
4/13/95 5.75 25,000 24,995 216992KC
Sanwa Bank, Ltd.
11/3/94 5.05 35,000 35,000 804999QE
11/21/94 4.93 35,000 35,000 804999RC
3/20/95 5.65 25,000 24,974 804999QB
4/7/95 5.86 30,000 29,993 804999RK
Societe Generale
11/15/94 4.86 25,000 25,000 833991UE
12/6/94 5.00 25,000 24,994 833991TQ
12/19/94 5.09 18,000 17,993 833991TS
12/23/94 5.09 25,000 24,994 833991TT
4/5/95 5.80 55,000 55,000 833991UM
Sumitomo Bank, Ltd.
11/16/94 4.87 25,000 25,000 86699EFT
12/7/94 5.34 22,000 22,000 86699EGW
12/19/94 5.00 50,000 50,000 86699EGC
Swiss Bank Corp.
3/27/95 5.63 100,000 100,000 870990YK
1,550,946
LONDON BRANCH, EURODOLLAR, DOMESTIC BANKS - 1.4%
Bankers Trust Co.
4/12/95 5.72 50,000 50,000 06699DDG
4/13/95 5.74 50,000 50,000 06699DDJ
100,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 4.3%
Barclays Bank, PLC
4/28/95 5.87% $ 25,000 $ 25,000 06799MAN
Lloyds Bank, PLC
12/13/94 5.12 25,000 25,003 539991AL
Mitsubishi Bank, Ltd.
11/15/94 5.25 50,000 50,000 610998WF
1/3/95 5.20 25,000 24,999 610998XH
4/5/95 5.87 7,000 6,996 610998YV
National Westminster Bank, PLC
12/8/94 5.00 25,000 25,001 638990JD
12/15/94 5.06 25,000 25,001 638990JF
Sumitomo Bank, Ltd.
12/22/94 5.01 75,000 75,001 86699EGB
Toronto-Dominion Bank
1/31/95 5.30 45,000 44,988 8911609R
2/13/95 5.38 20,000 19,991 8911609Q
321,980
TOTAL CERTIFICATES OF DEPOSIT 2,106,874
COMMERCIAL PAPER - 35.4%

ABN-AMRO North America, Inc.
12/16/94 5.09 12,000 11,924 03299BAQ
Abbey National (UK), PLC
11/30/94 4.91 25,000 24,902 007994GX
Bayerische Vereinsbank A.G.
11/14/94 4.81 43,700 43,624 072992DP
4/12/95 5.70 50,000 48,751 072992DN
Bear Stearns Cos., Inc.
12/12/94 5.08 41,000 40,765 07399CLG
CIT Group Holdings, Inc.
12/8/94 4.93 50,000 49,751 172990SV
Canadian Imperial Bank of Commerce
11/9/94 5.00 50,000 49,945 136993AB
Canadian Wheat Board
12/5/94 5.05 10,000 9,953 136995AH
12/6/94 5.04 23,000 22,890 136995AJ
12/7/94 5.05 20,000 19,901 136995AG
Chevron Corp.
11/16/94 4.90 20,000 19,959 1667519Q
Commercial Credit Co.
11/1/94 5.16 35,000 35,000 2030939A
Commerzbank U.S. Finance, Inc.
1/17/95 5.30 50,000 49,448 202995AY
Concord Leasing, Inc.
11/16/94 4.93 15,000 14,969 206993AT
Corporate Asset Funding Co., Inc.
11/15/94 5.15 (a) 20,000 19,991 1769926S
11/16/94 4.85 25,000 24,950 1769926W
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Corporate Receivables Corp.
11/18/94 4.89% $ 5,000 $ 4,989 220992EH
Cox Enterprises
11/18/94 4.97 8,000 7,981 2240509N
Dayton Hudson Corp.
11/4/94 4.86 1,330 1,329 239992JX
11/14/94 4.87 35,000 34,939 239992JV
11/28/94 5.03 12,000 11,955 239992JS
Dean Witter, Discover & Co.
11/15/94 4.91 25,000 24,953 24299ADS
11/15/94 4.91 45,000 44,915 24299ADQ
Deutsche Bank Financial Inc.
4/4/95 5.80 25,000 24,396 2515299D
Eiger Capital Corp.
11/17/94 4.91 14,986 14,953 278997AQ
Electronic Data Systems Corp.
11/15/94 4.93 10,000 9,981 285998GB
11/15/94 4.94 15,000 14,971 285998GA
Ford Motor Credit Corp.
11/15/94 4.91 60,000 59,887 34599BUL
11/16/94 4.88 25,000 24,950 34599BUA
11/16/94 4.91 50,000 49,899 34599BUJ
12/5/94 5.25 100,000 99,509 34599BVK
12/12/94 5.23 90,000 89,469 34599BVL
1/17/95 5.13 25,000 24,733 34599BUB
Ford Motor Credit, PLC
11/15/94 4.93 25,000 24,953 34599DAQ
General Electric Capital Corp.
11/7/94 4.87 45,000 44,964 369998QL
11/15/94 5.15 (a) 25,000 25,000 369998NE
12/9/94 5.05 20,000 19,896 369998PR
12/12/94 5.02 25,000 24,860 369998PT
1/26/95 5.27 25,000 24,694 369998PU
2/3/95 5.19 25,000 24,670 369998QA
2/13/95 5.24 70,000 68,969 369998QF
4/11/95 5.74 25,000 24,376 369998RD
4/24/95 5.87 50,000 48,623 369998RF
General Electric Capital Services Inc.
12/12/94 5.06 50,000 49,718 36999BBX
General Electric Corp.
4/12/95 5.72 25,000 24,375 369999CE
General Motors Acceptance Corp.
11/16/94 4.92 8,000 7,984 638998VF
11/22/94 4.96 42,000 41,880 638998UM
11/23/94 5.02 83,000 82,746 638998VE
1/26/95 5.50 50,000 49,355 638998UW
Generale Bank
3/27/95 5.66 35,000 34,219 371995CR
Goldman Sachs Group, L.P. (The)
11/21/94 4.92 10,000 9,973 696992MH
11/21/94 4.92 50,000 49,864 696992MH
2/1/95 5.13 70,000 69,106 696992LX
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Grand Metropolitan Finance
11/4/94 4.80% $ 15,000 $ 14,994 385997AR
HYPO U.S. Finance
11/2/94 5.13 40,000 39,994 07299DAG
Household Finance Corp.
11/10/94 4.86 25,000 24,970 44199DLG
11/15/94 4.91 41,000 40,923 44199DLK
IBM Corp.
11/9/94 4.81 10,000 9,989 45499ECM
11/14/94 5.17 10,000 9,981 45499ECJ
11/16/94 4.87 9,000 8,982 45499ECK
IBM Credit Corp.
11/9/94 4.81 25,000 24,973 449991CW
ITT Corp.
11/10/94 4.97 25,000 24,969 450991HP
11/14/94 4.97 8,000 7,986 450991HR
ITT Financial
11/15/94 5.18 30,000 29,940 450990MB
Merrill Lynch & Co., Inc.
11/7/94 4.81 12,000 11,990 59099GDL
Morgan Stanley Group, Inc.
12/13/94 5.17 30,000 29,821 61799ELA
NYNEX Corp.
11/8/94 4.88 25,000 24,976 67099CAX
11/8/94 5.11 3,000 2,997 67099CAW
National & Provincial Building Society
12/19/94 5.00 30,000 29,804 905998DB
Nestle Capital Corp.
11/17/94 4.91 4,500 4,490 641990AY
New Center Asset Trust
11/14/94 4.86 75,000 74,869 643995DE
11/15/94 4.88 50,000 49,906 643995CQ
11/21/94 4.94 55,000 54,851 643995CS
New South Wales Treasury Corp.
11/2/94 4.86 2,500 2,500 648992BL
Preferred Receivables Funding Corp.
11/7/94 4.80 25,150 25,130 748995TV
11/16/94 4.86 13,000 12,974 748995TN
Prudential Home Mortgage Co.
11/9/94 4.81 10,000 9,989 74499FAQ
Sears Roebuck Acceptance Corp.
2/6/95 5.70 35,000 34,471 81299EEW
2/7/95 5.70 5,000 4,924 81299EEX
Siemens Corp.
12/16/94 5.22 24,000 23,845 8269909P
4/10/95 5.70 15,000 14,630 8269909Q
4/13/95 5.71 20,000 19,497 8269909S
Texaco Inc.
11/14/94 4.94 31,000 30,945 920998PC
11/16/94 4.92 10,000 9,980 920998PL
Textron, Inc.
11/2/94 5.22 15,000 14,998 88599CCG
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Toronto Dominion Holdings USA, Inc.
11/16/94 4.87% $ 5,000 $ 4,990 89199AAL
2/2/95 5.08 25,000 24,680 89199AAH
3/1/95 5.21 25,000 24,576 89199AAJ
U.S.L. Capital, Inc.
11/14/94 4.92 17,200 17,170 912998QP
Unocal Corp.
11/16/94 5.10 7,000 6,985 91499HBA
11/18/94 5.05 2,443 2,437 91499HBC
WCP Funding, Inc.
11/17/94 4.92 11,300 11,275 92999KBA
Whirlpool Corp.
12/6/94 5.35 15,000 14,923 962996PR
Woolwich Equitable Building Society
12/28/94 5.20 14,900 14,779 980992FR
TOTAL COMMERCIAL PAPER 2,627,860
FEDERAL AGENCIES - 7.5%
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 6.9%
11/21/94 3.60 59,000 58,885 9931289A
1/19/95 5.10 125,000 123,634 9950095F
3/2/95 5.43 41,675 40,933 995021UW
3/3/95 5.43 15,475 15,197 995021UX
3/9/95 5.19 227,245 223,062 995021RU
3/22/95 5.55 50,000 48,943 995021VE
510,654
STUDENT LOAN MARKETING ASSOC. - DISCOUNT NOTES - 0.6%
4/5/95 5.76 50,000 48,794 863990PY
TOTAL FEDERAL AGENCIES 559,448
BANK NOTES - 8.5%

Bank of New York - Delaware
11/1/94 4.95 (a) 80,000 79,966 0640629C
Bank of New York
11/1/94 5.48 (a) 35,000 34,992 06499ABL
Boatmen's First National Bank of St. Louis
11/15/94 4.98 (a) 40,000 39,980 09699AAC
Comerica Bank-Detroit
11/1/94 5.45 (a) 15,000 14,997 226990AT
11/1/94 5.48 (a) 25,000 25,000 226990AX
BANK NOTES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
First Bank N.A., Minnesota
11/15/94 5.12% (a) $ 42,000 $ 41,984 31899AAA
12/16/94 5.10 (a) 20,000 20,000 31899AAE
First National Bank of Boston
12/19/94 5.40 20,000 20,000 322993AG
First of America Bank-Illinois, N.A.
11/18/94 5.15 5,000 4,999 326992AE
First of America Bank-Michigan, N.A.
12/13/94 5.10 15,000 15,000 326992AF
Huntington National Bank
11/1/94 4.96 (a) 40,000 39,973 4464389T
11/1/94 5.49 (a) 7,000 6,994 4464389N
11/1/94 5.67 (a) 37,800 37,777 4464389L
NationsBank of Texas
11/21/94 4.88 25,000 25,000 632999AD
NBD Bank, N.A.
4/6/95 5.80 45,000 45,000 634990BB
PNC Bank, N.A.
11/1/94 4.94 (a) 50,000 49,956 69399EAK
11/2/94 4.92 (a) 75,000 74,916 69399EAM
Society National Bank
11/1/94 4.94 (a) 28,000 27,982 833995AU
11/1/94 5.49 (a) 20,000 19,995 833995AL
TOTAL BANK NOTES 624,511
MASTER NOTES (A) - 2.7%

J.P. Morgan Securities
11/1/94 5.11 97,000 97,000 6169988F
11/1/94 5.13 70,000 70,000 6169985D
Norwest Corp.
11/1/94 5.01 35,000 35,000 66899CCD
TOTAL MASTER NOTES 202,000
MEDIUM-TERM NOTES - 9.7%

Abbey National Treasury Service
12/31/94 5.23 (a) 237,000 237,000 010998AJ
Beneficial Corp.
11/15/94 4.97 (a) 20,000 19,992 0819909S
11/15/94 4.98 (a) 90,000 89,983 0819909C
General Motors Acceptance Corp.
11/7/94 4.82 (a) 43,000 43,000 638998SX
12/15/94 4.99 5,200 5,221 638998SV
12/19/94 5.14 7,000 7,013 638998SN
1/1/95 5.24 25,000 25,135 638998UP
MEDIUM-TERM NOTES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Goldman Sachs Group, L.P. (The)(c)
11/1/94 5.27% (a) $ 25,000 $ 25,003 696992LW
11/5/94 4.77 (a) 25,000 25,022 696992LY
12/16/94 5.05 (a) 42,500 42,500 696992LQ
3/1/95 4.96 (a) 40,000 40,000 696992KB
Merrill Lynch & Co., Inc.
11/1/94 4.94 (a) 37,000 37,000 59099GBR
Norwest Corp.
3/15/95 5.05 (a) 48,000 48,000 66899CBK
PHH Corp.
11/16/94 4.97 (a) 41,000 40,987 6999903H
Society National Bank
11/1/94 4.93 (a) 37,000 36,976 833995AT
TOTAL MEDIUM-TERM NOTES 722,832
SHORT-TERM NOTES (A)(B) - 4.4%

SMM Trust Company (1994 - A)
12/18/94 5.08 180,000 180,000 83199GAD
12/18/94 5.18 27,000 26,991 83199GAD
12/18/94 5.19 17,000 16,993 83199GAD
SMM Trust Company (1994 - D)
1/28/95 5.73 39,000 39,000 83199GAK
SMM Trust Company (1994 - E)
1/13/95 5.66 46,000 46,000 83199GAF
1/13/95 5.74 16,000 15,994 83199GAF
TOTAL SHORT-TERM NOTES 324,978
TIME DEPOSITS - 1.4%

Dai-Ichi Kangyo Bank, Ltd.
11/10/94 5.22 40,000 40,000 2379989U
11/14/94 5.16 15,000 15,000 2338049D
Sumitomo Bank, Ltd.
11/2/94 4.88 50,000 50,000 86699EHC
TOTAL TIME DEPOSITS 105,000
REPURCHASE AGREEMENTS - 1.4%
MATURITY AMOUNT VALUE (NOTE 1)
(000S) (000S)
With Goldman, Sachs & Co.:
At 4.85%, dated 10/24/94 due 11/14/94
U.S. Government Obligations
(principal amount $102,585)
4.90% to 5.05%, 6/1/23 to 8/1/34 $ 100,283 $ 100,000 38199MXF
In a joint trading account
(U.S. Treasury Obligations)
dated 10/31/94, due 11/1/94
At 4.84% 3,877 3,876 99799N9J
TOTAL REPURCHASE AGREEMENTS 103,876
TOTAL INVESTMENTS - 100% $ 7,419,836
Total Cost for Income Tax Purposes $ 7,419,836

LEGEND
1. 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.
2. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
SMM Trust Company:
(1994-A) 3/17/94 $ 180,000,000
(1994-A) 5/5/94 $ 27,140,000
(1994-A) 6/28/94 $ 17,011,000
(1994-D) 10/28/94 $ 39,000,000
(1994-E) 4/13/94 $ 46,000,000(1994-E) 5/19/94 $ 16,060,000

3. 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 $132,525,000 or 1.8% of net
assets.
INCOME TAX INFORMATION
At April 30, 1994, the fund had a capital loss carryforward of
approximately $2,193,000 of which $301,000 and $1,892,000 will expire on
April 30, 2001 and 2002, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1994 (UNAUDITED)

ASSETS

Investment in securities, at value (including repurchase $ 7,419,836
agreements of $103,876) - See accompanying
schedule

Cash 36,293

Receivable for investments sold - delayed delivery 47,000

Interest receivable 30,304

TOTAL ASSETS 7,533,433

LIABILITIES

Dividends payable $ 764

Accrued management fee 2,844

TOTAL LIABILITIES 3,608

NET ASSETS $ 7,529,825

Net Assets consist of:

Paid in capital $ 7,531,822

Accumulated net realized gain (loss) on investments (1,997)

NET ASSETS, for 7,531,311 shares outstanding $ 7,529,825

NET ASSET VALUE, offering price and redemption price per $1.00
share ($7,529,825 (divided by) 7,531,311 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED OCTOBER 31, 1994 (UNAUDITED)

INTEREST INCOME $ 166,734

EXPENSES

Management fee $ 16,006

Non-interested trustees' compensation 19

Total expenses before reductions 16,025

Expense reductions (500) 15,525

NET INTEREST INCOME 151,209

NET REALIZED GAIN (LOSS) ON INVESTMENTS 196

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 151,405

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED OCTOBER APRIL 30,
31, 1994 1994
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 151,209 $ 140,651
Net interest income

Net realized gain (loss) 196 (1,893)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 151,405 138,758
FROM OPERATIONS

Dividends to shareholders from net interest income (151,209) (140,651)

Share transactions at net asset value of $1.00 per share 5,925,177 7,813,321
Proceeds from sales of shares

Reinvestment of dividends from net interest income 144,986 135,945

Cost of shares redeemed (4,993,932) (6,035,840)

Net increase (decrease) in net assets and shares 1,076,231 1,913,426
resulting from share transactions

TOTAL INCREASE (DECREASE) IN NET ASSETS 1,076,427 1,911,533

NET ASSETS

Beginning of period 6,453,398 4,541,865

End of period $ 7,529,825 $ 6,453,398

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS ENDE YEARS ENDED APRIL 30,
D
OCTOBER 31, 1994

(UNAUDITED) 1994 1993 1992 1991 1990

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA

Net asset value, $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
beginning of
period

Income from Investme .021 .031 .035 .053 .076 .089
nt Operations
Net interest
income

Less Distributions (.021) (.031) (.035) (.053) (.076) (.089)
From net interest
income

Net asset value, $ 1.00 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period

TOTAL RETURN B 2.15% 3.14% 3.51% 5.41% 7.87% 9.32%

RATIOS AND SUPPLEMENTAL DATA

Net assets, $ 7,530 $ 6,453 $ 4,542 $ 5,371 $ 7,190 $ 8,342
end of period
(in millions)

Ratio of expenses to .44%A .31% .30% .34% .28% .09%
average net
assets C

Ratio of expenses to .45%A .32% .30% .34% .47% .53%
average net assets

before expense
reductions C

Ratio of net interest 4.25%A 3.12% 3.46% 5.32% 7.62% 8.77%
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 THE ADVISER NOT REDUCED CERTAIN EXPENSES DURING THE PERIODS
SHOWN.
C SEE NOTE 4 OF NOTES TO FINANCIAL STATEMENTS
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1994 (Unaudited)

1. SIGNIFICANT ACCOUNTING
POLICIES.
Spartan Money Market Fund (the fund) is a fund of Fidelity Hereford Street
Trust (formerly Fidelity Summer Street Trust)and is authorized to issue an
unlimited number of shares. The fund is registered under the Investment
Company Act of 1940, as amended (the 1940 Act), as an open-end management
investment company. At a special meeting of the shareholders of the money
market fund held on March 23, 1994, shareholders approved an Agreement and
Plan of Conversion and Termination (the Plan of Conversion), providing for
the conversion of the fund from a separate series of a Massachusetts trust,
to a separate series of a Delaware trust, effective June 17, 1994. The
individual investment objective, policies and limitations of the fund
remain the same.
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.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
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 SEC), 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
2. OPERATING POLICIES -
CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
that mature in 60 days or less from the date of purchase, and are
collateralized by U.S. Treasury or Federal Agency obligations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities 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 prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $324,978,000 or 4.3% of net assets.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, 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 .45% of the
fund's average net assets.
To offset the cost of providing shareholder services, FMR or its affiliates
collect certain transaction fees from the fund's shareholders. For the
period, fees collected from shareholders amounted to $145,000.
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.
4. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above a specified percentage of average net assets. During the
period, this expense limitation ranged from .39% to .45% of average net
assets and the reimbursement reduced expenses by $500,000.
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
Fred L. Henning, Jr., Vice President
John Todd, 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 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
The Bank 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 1-800-544-0111
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE