FIDELITY HEREFORD STREET TRUST, N-30D, 1996-12-10

FIDELITY HEREFORD STREET TRUST
N-30D, 1996-12-10

Previous: RAINIER INVESTMENT MANAGEMENT MUTUAL FUNDS, N-30B-2, 1996-12-10

Next: HEALTH POWER INC /DE/, SC 13G/A, 1996-12-10

SPARTAN

(registered trademark)
(registered trademark)
U.S. GOVERNMENT
MONEY MARKET
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1996
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 value.

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

NOTES 16 Notes to the financial statements.

To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will begin eliminating duplicate
copies of most financial reports and prospectuses to most households, even
if they have more than one account in the fund. If additional copies of
financial reports, prospectuses or historical account information are
needed, please call 1-800-544-6666.

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,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
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

(PHOTO_OF_EDWARD_C_JOHNSON_3D)DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first 10
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in both the stock and bond markets so far
this year. In 1995, both stock and bond markets posted strong results,
while the year before, stocks posted below-average returns and bonds had
one of the worst years in history.
These market ups and downs are a normal part of investing, and there are
some basic principles that can help investors in every type of market.
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. A fund's total return reflects the change in share price
over a given period, reinvestment of its dividends (or income) and the
effect of the fund's $5 account closeout fee on an average size account.
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 past five years and life of fund total returns would have been
lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan U.S. Government 2.57% 5.25% 23.23% 39.50%
Money Market Fund

Government Money Market 2.36% 4.84% 21.07% 34.82%
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, 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, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the government money market
funds average, which reflects the performance of 227 government money
market funds with similar objectives tracked by IBC Financial Data, Inc.
over the past six months. (The periods covered by IBC Financial Data, Inc.
numbers are the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan U.S. Government 5.25% 4.27% 5.06%
Money Market Fund

Government Money Market 4.82% 3.89% 4.58%
Funds Average

AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
YIELDS
10/31/95 1/30/96 4/30/96 7/30/96 10/29/96

Spartan U.S. Government 5.42% 5.23% 5.03% 5.04% 5.04%
Money Market Fund

Government Money Market 5.05% 4.82% 4.57% 4.65% 4.66%
Funds Average

11/1/95 1/31/96 5/1/96 7/31/96 10/30/96

2.85% 2.81% 2.67% 2.69% 2.66%
MMDA

Row: 1, Col: 1, Value: 5.42
Row: 1, Col: 2, Value: 5.05
Row: 1, Col: 3, Value: 2.8
Row: 2, Col: 1, Value: 5.23
Row: 2, Col: 2, Value: 4.819999999999999
Row: 2, Col: 3, Value: 2.8
Row: 3, Col: 1, Value: 5.03
Row: 3, Col: 2, Value: 4.470000000000001
Row: 3, Col: 3, Value: 2.65
Row: 4, Col: 1, Value: 5.04
Row: 4, Col: 2, Value: 4.6
Row: 4, Col: 3, Value: 2.7
Row: 5, Col: 1, Value: 5.04
Row: 5, Col: 2, Value: 4.619999999999999
Row: 5, Col: 3, Value: 2.63
Spartan U.S.
Government
Money Market
Government
Money
Market Funds
Average
MMDA
6% -
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. You can
compare these yields to the government money market funds average and the
bank money market deposit account (MMDA) average. Figures for the
government money market funds average are from IBC Financial Data, Inc.
The MMDA average is supplied by BANK RATE MONITOR.(Trademark)
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 THE INVESTMENT CLIMATE BEEN LIKE OVER THE PAST SIX
MONTHS?
A. It's been an interesting six months. Early on, there were signs that the
economy was growing rapidly, as evidenced by an acceleration in the gross
domestic product (GDP). Further, the unemployment rate remained at an
extremely low level, which was a concern because over the long term it's
typically a tight labor market and rising wages that drive inflation
pressures. This backdrop led much of the market to anticipate that the
Federal Reserve Board would increase the interest rate banks charge each
other for overnight loans - known as the fed funds rate - in order to slow
the economy and prevent inflationary pressures from building. For several
months, an interesting pattern developed. The market traded within a narrow
range, selling off when strong employment numbers were reported, then
bouncing back when other statistics such as retail sales showed some
weakness. In the second half of the period, the market broke out of this
range, as further data reinforced the belief that the economy was indeed
slowing from the robust pace of the second quarter. Given this slowdown and
continued modest inflation, expectations of a Fed tightening have been
almost completely removed from the current level of short-term rates.
Q. GIVEN THIS ENVIRONMENT, WHAT WAS YOUR STRATEGY?
A. First of all, I tried to make purchases when interest rates were at the
top of the range I talked about. Second, I let the fund's average maturity
decline into the 30-day range in July and August, when I felt the chances
were good that the Fed would raise short-term rates. When the Fed's August
meeting passed and it appeared there would be no action on interest rates,
I increased the fund's average maturity to the mid-40s. Beyond that, I used
floating-rate securities to keep the portfolio flexible. These investments
have shorter maturities, but provide a yield advantage over other
opportunities in the market.
Q. HOW HAS THE FUND PERFORMED?
A. Better than most of its competitors. On October 31, 1996, the fund's
seven-day yield was 5.05%, compared to 5.03% six months ago. The fund's
total return for the six months was 2.57%. That beat the average total
return during the same period of 2.36% for the government money market
funds average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I think it's likely we'll see no change in Fed policy over the next few
months. One of the reasons is that the increase in GDP for the third
quarter was to a large degree due to a higher level of inventory
accumulation. The key from here is whether the economy rekindles due to a
pick-up in retail sales, helping to work off those inventories. I believe
the economy will continue along at a good pace - not at one so strong that
the Fed feels it has to increase short-term rates, but also not one weak
enough to create concerns about a recession. This backdrop should create a
stable fed funds rate environment and a trading range within the short end
of the market similar to what we saw in April, May and June. As a result,
I'll probably keep the fund flexible, with an average maturity in the
mid-40s.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: high current income
while maintaining a stable
$1 share price by investing
in U.S. government money
market securities
START DATE: February 5, 1990
SIZE: as of October 31, 1996,
more than $872 million
MANAGER: Leland Barron,
since 1991; manager, Fidelity
U.S. Government Reserves
and Spartan U.S. Treasury
Money Market Fund, since
1991; joined Fidelity in 1981
(checkmark)
WORDS TO KNOW
AGENCY ISSUE: Debt security
issued by a government
agency, such as the Federal
National Mortgage Association
(Fannie Mae). Although their
credit ratings are high, most
agency issues are not backed
by the full faith and credit of the
U.S. government.
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.
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.
MATURITY: The amount of time
remaining before a debt
security is scheduled to be
redeemed.
REPURCHASE AGREEMENT:
Agreement between a seller
and a buyer in which the seller
promises to repurchase a block
of securities at a set price and
time. Also known as a "repo."
TREASURY OBLIGATION: Debt
security issued directly by the
U.S. government. Payment of
principal and interest are
guaranteed.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/96 4/30/96 10/31/95

0 - 30 71 34 74

31 - 90 13 15 8

91 - 180 9 16 7

181 - 397 7 35 11

WEIGHTED AVERAGE MATURITY
10/31/96 4/30/96 10/31/95

Spartan U.S. Government
Money Market Fund 42 days 36 days 43 days

Government Money
Market 49 days 51 days 50 days
Funds Average *

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF OCTOBER 31, 1996 AS OF APRIL 30, 1996

Row: 1, Col: 1, Value: 59.0
Row: 1, Col: 2, Value: 9.0
Row: 1, Col: 3, Value: 32.0
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 1, Value: 62.0
Row: 1, Col: 2, Value: 6.0
Row: 1, Col: 3, Value: 31.0
Row: 1, Col: 4, Value: 1.0
Federal agency
issues 59%
U.S. Treasury
obligations 9%
Repurchase
agreements 32%
Other 0%
Federal agency
issues 62%
U.S. Treasury
obligations 6%
Repurchase
agreements 31%
Other 1%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

FEDERAL AGENCIES - 58.7%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
FEDERAL FARM CREDIT BANK - AGENCY COUPON (A) - 2.4%
11/1/96 5.59% $ 21,000,000 $ 20,993,691
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 6.4%
11/1/96 5.78 9,000,000 8,998,265
11/2/96 5.35 32,000,000 31,977,109
11/28/96 5.30 16,000,000 15,989,749
56,965,123
FEDERAL HOME LOAN BANK - DISCOUNT NOTES - 1.3%
1/29/97 5.64 11,310,000 11,156,775
FEDERAL HOME LOAN MORTGAGE CORP. - DISCOUNT NOTES - 7.7%
11/4/96 5.36 16,000,000 15,992,947
11/4/96 5.42 15,000,000 14,993,325
1/3/97 5.30 8,000,000 7,926,640
1/3/97 5.31 30,000,000 29,724,900
68,637,812
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 29.0%
11/1/96 5.29 39,000,000 38,987,273
11/1/96 5.30 33,000,000 32,990,092
11/1/96 5.34 21,000,000 21,110,970
11/1/96 5.39 5,000,000 5,006,347
11/1/96 5.42 40,000,000 39,977,613
11/1/96 5.59 19,000,000 18,991,002
11/1/96 5.85 30,000,000 30,000,000
11/5/96 5.27 25,000,000 24,999,398
11/5/96 5.33 10,000,000 9,991,544
11/21/96 5.40 6,000,000 5,998,459
12/4/96 (c) 5.25 21,000,000 20,981,629
12/20/96 5.54 10,000,000 9,995,964
259,030,291
FEDERAL NATIONAL MORTGAGE ASSOC. - DISCOUNT NOTES - 9.0%
11/8/96 5.36 3,000,000 2,996,914
1/22/97 5.30 19,000,000 18,773,657
2/4/97 5.45 26,000,000 25,636,361
4/21/97 5.40 12,000,000 11,700,750
4/28/97 5.39 3,000,000 2,922,125
4/28/97 5.69 6,000,000 5,838,020
4/30/97 5.40 13,000,000 12,658,100
80,525,927
FEDERAL AGENCIES - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
STUDENT LOAN MARKETING ASSOC. - AGENCY COUPONS (A) - 2.9%
11/5/96 5.42% $ 26,000,000 $ 26,000,000
TOTAL FEDERAL AGENCIES 523,309,619
U.S. TREASURY OBLIGATIONS - 9.0%
U.S. TREASURY BILLS
4/3/97 5.54 19,000,000 18,575,659
4/3/97 5.55 16,000,000 15,642,320
8/21/97 5.63 4,000,000 3,826,479
8/21/97 5.66 4,000,000 3,825,828
8/21/97 5.67 16,000,000 15,301,951
9/18/97 5.68 9,000,000 8,568,255
9/18/97 5.70 5,000,000 4,759,747
9/18/97 5.71 10,000,000 9,518,226
TOTAL U.S. TREASURY OBLIGATIONS 80,018,465
MEDIUM-TERM NOTES (A)(B) - 0.3%
EXPORT-IMPORT BANK, U.S. (AS GUARANTOR FOR K.A. LEASING, LTD.)
11/15/96 5.50 3,077,174 3,077,174
REPURCHASE AGREEMENTS - 32.0%
MATURITY
AMOUNT
In a joint trading account (U.S. Government Obligations):
dated 9/16/96 due 12/2/96
At 5.40% $ 22,254,100 22,000,000
dated 10/3/96 due 11/5/96
At 5.32% 21,102,410 21,000,000
dated 10/7/96 due 11/6/96
At 5.30% 25,110,417 25,000,000
dated 10/8/96 due 11/12/96
At 5.30% 42,216,417 42,000,000
dated 10/15/96 due 11/18/96
At 5.30% 37,185,206 37,000,000
REPURCHASE AGREEMENTS - CONTINUED
MATURITY VALUE
AMOUNT (NOTE 1)
In a joint trading account (U.S. Government Obligations): - continued
dated 10/21/96 due 11/18/96
At 5.30% $ 18,074,200 $ 18,000,000
dated 10/31/96 due 11/1/96
At 5.60% 120,883,801 120,865,000
TOTAL REPURCHASE AGREEMENTS 285,865,000
TOTAL INVESTMENTS - 100% $ 892,270,258
Total Cost for Income Tax Purposes $ 892,270,258
LEGEND
1. 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.
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
Export-Import Bank,
U.S. (as guarantor for
K.A. Leasing, Ltd.) 7/8/94 $3,077,174
3. Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
INCOME TAX INFORMATION
At April 30,1996, the fund had a capital loss carryforward of approximately
$171,000 of which $20,000, $10,000, $52,000, $53,000 and $36,000 will
expire on April 30, 1999, 2001, 2002, 2003 and 2004, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
OCTOBER 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (including $ 892,270,258
repurchase agreements of $285,865,000) -
See accompanying schedule

Interest receivable 3,509,468

TOTAL ASSETS 895,779,726

LIABILITIES

Payable for investments purchased

Delayed delivery $ 20,981,629

Share transactions in process 2,047,488

Distributions payable 164,037

Accrued management fee 333,382

TOTAL LIABILITIES 23,526,536

NET ASSETS $ 872,253,190

Net Assets consist of:

Paid in capital $ 872,421,564

Accumulated net realized gain (loss) on investments (168,374)

NET ASSETS, for 872,421,564 shares outstanding $ 872,253,190

NET ASSET VALUE, offering price and redemption price per $1.00
share ($872,253,190 (divided by) 872,421,564 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)

INTEREST INCOME $ 22,773,792

EXPENSES

Management fee $ 1,877,672

Non-interested trustees' compensation 1,777

Total expenses before reductions 1,879,449

Expense reductions (10,419) 1,869,030

NET INTEREST INCOME 20,904,762

NET REALIZED GAIN (LOSS) ON INVESTMENTS 2,984

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 20,907,746

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED APRIL 30,
OCTOBER 31, 1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 20,904,762 $ 40,672,383
Net interest income

Net realized gain (loss) 2,984 (36,511)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 20,907,746 40,635,872
FROM OPERATIONS

Distributions to shareholders from net interest income (20,904,762) (40,672,383)

Share transactions at net asset value of $1.00 per share 488,882,268 809,405,827
Proceeds from sales of shares

Reinvestment of distributions from net interest income 20,196,398 38,628,312

Cost of shares redeemed (398,303,709) (793,716,471)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 110,774,957 54,317,668
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 110,777,941 54,281,157

NET ASSETS

Beginning of period 761,475,249 707,194,092

End of period $ 872,253,190 $ 761,475,249

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED APRIL 30,
ENDED
OCTOBER 31, 1996

(UNAUDITED) 1996 1995 1994 1993 1992

<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 .025 .054 .047 .029 .032 .052
Investment
Operations
Net interest income

Less Distributions (.025) (.054) (.047) (.029) (.032) (.052)
From net interest
income

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

TOTAL RETURN B 2.57% 5.52% 4.79% 2.89% 3.24% 5.33%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 872,253 $ 761,475 $ 707,194 $ 780,295 $ 897,792 $ 1,411,348
period (000 omitted)

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

Ratio of expenses to .45% .41% .45% .45% .45% .40%
average net assets A D
after expense
reductions

Ratio of net interest 5.01% 5.42% 4.67% 2.85% 3.25% 5.29%
income to average A
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 FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1996 (Unaudited)

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan U.S. Government Money Market Fund (the fund) is a fund of Fidelity
Hereford Street 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 financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. 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 substantially 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 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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase for U.S. Treasury or Federal
Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
2. OPERATING POLICIES -
CONTINUED
REVERSE REPURCHASE AGREEMENTS. At all times that a reverse repurchase
agreement is outstanding, the fund identifies cash and liquid securities as
segregated in its custodian records with a value at least equal to its
obligation under the agreement.
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. The
market value of the securities purchased or sold on a when-issued or
forward commitment basis are identified as such in the fund's schedule of
investments. The fund may receive compensation for interest forgone in the
purchase of a delayed delivery security. Losses may arise due to changes in
the market value of the underlying securities or if the counterparty does
not perform under the contract.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $3,077,174 or
.35% of net assets.
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 maturity values of the joint trading account
investments were $22,254,100 at 5.40%, $21,102,410 at 5.32%, $25,110,417 at
5.30%, $42,216,417 at 5.30%, $37,185,206 at 5.30%, $18,074,200 at 5.30% and
$120,883,801 at 5.60%. The investments in repurchase agreements through the
joint trading account are summarized as follows:
SUMMARY OF JOINT TRADING
DATED SEPTEMBER 16, 1996 DUE DECEMBER 2, 1996 AT 5.40%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $202,310,000
Aggregate market value of transferred assets $207,024,952
Coupon rates of transferred assets 9.0% to 9.50%
Maturity dates of transferred assets 4/15/16 to 11/15/22
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED OCTOBER 3, 1996 DUE NOVEMBER 5, 1996 AT 5.32%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $200,975,333
Aggregate market value of transferred assets $206,006,911
Coupon rates of transferred assets 6.50% to 7.00%
Maturity dates of transferred assets 2/15/26 to 6/15/26
DATED OCTOBER 7, 1996 DUE NOVEMBER 6, 1996 AT 5.30%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $100,000,000
Aggregate maturity amount of agreements $100,441,667
Aggregate market value of transferred assets $103,930,187
Coupon rates of transferred assets 0.0% to 12.50%
Maturity dates of transferred assets 10/1/01 to 11/1/26
DATED OCTOBER 8, 1996 DUE NOVEMBER 12, 1996 AT 5.30%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $850,000,000
Aggregate maturity amount of agreements $854,379,861
Aggregate market value of transferred assets $963,050,001
Coupon rates of transferred assets 4.42% to 10.50%
Maturity dates of transferred assets 12/1/99 to 7/1/35
DATED OCTOBER 15, 1996 DUE NOVEMBER 18, 1996 AT 5.30%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $200,000,000
Aggregate maturity amount of agreements $201,001,111
Aggregate market value of transferred assets $206,929,966
Coupon rates of transferred assets 0.0% to 9.50%
Maturity dates of transferred assets 9/1/01 to 12/1/35
3. JOINT TRADING ACCOUNT - CONTINUED
SUMMARY OF JOINT TRADING - CONTINUED
DATED OCTOBER 21, 1996 DUE NOVEMBER 18, 1996 AT 5.30%
Number of dealers or banks 1
Maximum amount with one dealer or bank 100%
Aggregate principal amount of agreements $475,000,000
Aggregate maturity amount of agreements $476,958,056
Aggregate market value of transferred assets $490,222,755
Coupon rates of transferred assets 0.0% to 11.00%
Maturity dates of transferred assets 9/1/00 to 4/1/35
DATED OCTOBER 31, 1996 DUE NOVEMBER 1, 1996 AT 5.60%
Number of dealers or banks 4
Maximum amount with one dealer or bank 32.9%
Aggregate principal amount of agreements $1,516,192,000
Aggregate maturity amount of agreements $1,516,427,852
Aggregate market value of transferred assets $1,561,270,943
Coupon rates of transferred assets 0.0% to 11.00%
Maturity dates of transferred assets 11/15/96 to 10/1/26
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, 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
.45% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$9,006 for the period.
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.
5. EXPENSE REDUCTIONS.
FMR has entered into an arrangement on behalf of the fund with the fund's
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of the fund's expenses. During the period, the fund's
expenses were reduced by $10,419 under this arrangement.
MANAGING YOUR INVESTMENTS

Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate the
service, and on your first call, the system will help you create a personal
identification number (PIN) for security.
SM
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
1
For quotes.*
2
For account balances and holdings.
3
To review orders and mutual
fund activity.
4
To change your PIN.
5
To speak to a Fidelity representative.
*
0
BY PC
Fidelity's Web site on the Internet provides a wide range of information,
including daily financial news, fund performance, interactive planning
tools and news about Fidelity products and services.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at 1-800-544-7272
for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)(PHONE_GRAPHIC)(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity at
1-800-544-7272 or visit our Web site for more information on how to manage
your investments via your PC.
* 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 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)(LETTER_GRAPHIC)(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)(LETTER_GRAPHIC)(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 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)(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
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
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 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
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, 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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
56 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
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
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI

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
Sarah H. Zenoble, Vice President
Leland C. Barron, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
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*
ADVISORY BOARD
William O. McCoy
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
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress 1-800-544-5555
SM
* INDEPENDENT TRUSTEES
AUTOMATED LINE FOR QUICKEST SERVICE

SPARTAN

(registered trademark)
(registered trademark)
U.S. TREASURY
MONEY MARKET
FUND
SEMIANNUAL REPORT
OCTOBER 31, 1996
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.

To measure a money market fund's performance, you can look at either total
return or yield. A fund's total return reflects the change in share price
over a given period, reinvestment of its dividends (or income) and the
effect of the fund's $5 account closeout fee on an average sized account.
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, the past five years
and the life of fund total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1996 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND

Spartan U.S. Treasury Money Marke 2.44% 4.98% 22.24% 60.62%
t

100% U.S. Treasury Money Market 2.34% 4.77% 20.98% n/a
Funds Average

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, 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, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the 100% U.S. Treasury money
market funds average, which reflects the performance of 34 100% U.S.
Treasury money market funds with similar objectives tracked by IBC
Financial Data, Inc. over the past six months. (The periods covered by IBC
Financial Data, Inc. numbers are the closest available match to those
covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan U.S. Treasury Money Market 4.98% 4.10% 5.51%

100% U.S. Treasury Money Market 4.76% 3.88% n/a
Funds Average

Spartan U.S. Treasury 5.08% 4.98% 4.77% 4.77% 4.82%
Money Market

100% U.S. Treasury Money 4.88% 4.72% 4.51% 4.58% 4.60%
Market Funds Average

11/1/95 1/31/96 5/1/96 7/31/96 10/30/96

2.85% 2.81% 2.67% 2.69% 2.66%
MMDA

Row: 1, Col: 1, Value: 5.08
Row: 1, Col: 2, Value: 4.88
Row: 1, Col: 3, Value: 2.85
Row: 2, Col: 1, Value: 4.98
Row: 2, Col: 2, Value: 4.72
Row: 2, Col: 3, Value: 2.81
Row: 3, Col: 1, Value: 4.77
Row: 3, Col: 2, Value: 4.51
Row: 3, Col: 3, Value: 2.67
Row: 4, Col: 1, Value: 4.77
Row: 4, Col: 2, Value: 4.58
Row: 4, Col: 3, Value: 2.69
Row: 5, Col: 1, Value: 4.819999999999999
Row: 5, Col: 2, Value: 4.6
Row: 5, Col: 3, Value: 2.66
Spartan
U.S. Treasury
Money Market
100% U.S.
Treasury Money
Market Funds
Average
MMDA
6% -
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. You can
compare these yields to the 100% U.S. Treasury money market funds average
and the bank money market deposit account (MMDA) average. Figures for the
100% U.S. Treasury money market funds average are from IBC Financial Data,
Inc. The MMDA average is supplied by BANK RATE MONITOR(Trademark).
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, WHAT HAS THE INVESTMENT CLIMATE BEEN LIKE OVER THE PAST SIX
MONTHS?
A. It's been an interesting six months. Early on, there were signs that the
economy was growing rapidly, as evidenced by an acceleration in the gross
domestic product (GDP). Further, the unemployment rate remained at an
extremely low level, which was a concern because it's typically a tight
labor market and rising wages that drive inflation pressures over the long
term. This backdrop led much of the market to anticipate that the Federal
Reserve Board would increase the interest rate banks charge each other for
overnight loans - known as the fed funds rate - in order to slow the
economy and prevent inflationary pressures from building. For several
months, an interesting pattern developed. The market traded within a narrow
range, selling off when strong employment numbers were reported, then
bouncing back when other statistics such as retail sales showed some
weakness. In the second half of the period, the market broke out of this
range, as further data reinforced the belief that the economy was indeed
slowing from the robust pace of the second quarter. Given this slowdown and
continued modest inflation, expectations for a Fed tightening have been
almost completely removed from the current level of short-term rates.
Q. GIVEN THIS ENVIRONMENT, WHAT WAS YOUR STRATEGY?
A. First of all, I tried to make purchases when interest rates were at the
top of the range I talked about. Second, I let the fund's average maturity
decline into the 50-day range in July and August, when I felt the chances
were good that the Fed would raise short-term rates. When the Fed's August
meeting passed and it appeared there would be no action on interest rates,
I increased the fund's average maturity to the 70-day range, and it's now
at 73 days. More recently, there has been little incentive to invest in
securities too far out on the yield curve. That's because the yield curve
has been relatively flat, with longer-term investments offering less of a
yield advantage over shorter-term ones.
Q. HOW HAS THE FUND PERFORMED?
A. Better than most of its competitors. On October 31, 1996, the fund's
seven-day yield was 4.83%, compared to 4.77% six months ago. The fund's
total return for the six months was 2.44%. That beat the average total
return during the same period of 2.34% for the 100% U.S. Treasury money
market funds average, according to IBC Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. I think it's likely we'll see no change in Fed policy over the next few
months. One of the reasons is that the increase in GDP for the third
quarter was due to a large degree to a higher level of inventory
accumulation. The key determinant is whether the economy rekindles due to a
pick-up in retail sales, helping to work off those inventories. I believe
the economy will continue along at a good pace - not at one so strong that
the Fed feels it has to increase short-term rates, but also not one weak
enough to create concerns about a recession. This backdrop should create a
stable fed funds rate environment and a trading range within the short end
of the market similar to what we saw in April, May and June. As a result,
I'll probably keep the fund flexible, with an average maturity in the
70-day range.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: income while
maintaining a stable $1 share
price by investing in U.S.
Treasury money market
securities whose interest is
free from state and local
income taxes
START DATE: January 5, 1988
SIZE: as of October 31,
1996, more than $1.8 billion
MANAGER: Leland Barron,
since 1991; manager,
Fidelity U.S. Government
Reserves and Spartan U.S.
Government Money Market
Fund, since 1991; 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.
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 before a debt
security is scheduled to be
redeemed.
TREASURY OBLIGATION: Debt
security issued directly by the
U.S. government. Payment of
principal and interest are
guaranteed.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/96 4/30/96 10/31/95

0 - 30 25 21 27

31 - 90 39 37 27

91 - 180 33 34 42

181 - 397 3 8 4

WEIGHTED AVERAGE MATURITY
10/31/96 4/30/96 10/31/95

Spartan U.S. Treasury 73 days 79 days 74 days
Money Market Fund

100% U.S. Treasury 63 days 62 days 64 days
Money Market Funds
Average*

ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF OCTOBER 31, 1996 AS OF APRIL 30, 1996

Row: 1, Col: 1, Value: 55.0
Row: 1, Col: 2, Value: 45.0
Row: 1, Col: 1, Value: 25.0
Row: 1, Col: 2, Value: 75.0
U.S. Treasury
bills 55%
U.S. Treasury
notes 45%
U.S. Treasury
bills 25%
U.S. Treasury
notes 75%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

U.S. TREASURY OBLIGATIONS - 100.0%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY BILLS - 55.3%
11/7/96 5.24% $ 36,048 $ 36,017
11/7/96 5.25 22,830 22,810
11/7/96 5.30 50,000 49,957
11/14/96 5.25 2,450 2,446
11/14/96 5.27 4,842 4,833
11/14/96 5.31 100,000 99,811
12/5/96 5.26 10,612 10,560
12/12/96 5.13 39,928 39,698
12/12/96 5.26 112,000 111,338
12/19/96 5.22 116,000 115,199
1/9/97 5.03 67,231 66,590
1/9/97 5.07 23,679 23,452
1/16/97 5.07 61,139 60,494
1/23/97 5.05 50,000 49,425
1/23/97 5.06 111,330 110,047
2/20/97 5.25 15,000 14,764
2/20/97 5.26 80,000 78,737
4/3/97 5.67 7,041 6,880
7/24/97 5.55 456 438
7/24/97 5.58 322 309
8/21/97 5.74 240 229
8/21/97 5.75 6,591 6,300
8/21/97 5.84 12,045 11,502
9/18/97 5.72 33,720 32,093
953,929
U.S. TREASURY NOTES - 44.7%
11/15/96 4.95 101,921 101,896
11/15/96 4.97 29,000 29,022
11/15/96 4.98 31,780 31,770
11/15/96 5.04 1,130 1,130
11/15/96 5.22 3,300 3,302
11/15/96 5.23 898 899
11/30/96 5.23 30,000 30,041
11/30/96 5.24 21,000 21,029
1/15/97 5.24 55,000 55,284
1/15/97 5.29 25,000 25,126
2/28/97 5.25 65,582 65,854
4/15/97 5.32 298 302
1/31/97 5.25 36,929 37,117
1/31/97 5.30 210,000 211,034
2/28/97 5.21 1,422 1,429
2/28/97 5.22 100,000 100,485
2/28/97 5.24 26,694 26,816
2/28/97 5.25 1,328 1,334
U.S. TREASURY OBLIGATIONS - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
U.S. TREASURY NOTES - CONTINUED
2/28/97 5.51% $ 23,000 $ 23,092
3/31/97 5.29 3,135 3,154
770,116
TOTAL INVESTMENTS - 100% $ 1,724,045
Total Cost for Income Tax Purposes $ 1,724,045

INCOME TAX INFORMATION
At April 30, 1996 the fund had a capital loss carryforward of approximately
$266,000 of which $219,000 and $47,000 will expire on April 30, 2002 and
2004, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
(EXCEPT PER-SHARE AMOUNT) OCTOBER 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value - See $ 1,724,045
accompanying schedule

Cash 18,828

Receivable for investments sold 317,789

Interest receivable 14,544

TOTAL ASSETS 2,075,206

LIABILITIES

Payable for investments purchased $ 135,547

Distributions payable 230

Accrued management fee 711

Payable for reverse repurchase agreement 89,921

TOTAL LIABILITIES 226,409

NET ASSETS $ 1,848,797

Net Assets consist of:

Paid in capital $ 1,848,870

Accumulated net realized gain (loss) on investments (73)

NET ASSETS, for 1,848,870 shares outstanding $ 1,848,797

NET ASSET VALUE, offering price and redemption price $1.00
per share ($1,848,797 (divided by) 1,848,870 shares)

</TABLE>

STATEMENT OF OPERATIONS
SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)

INTEREST INCOME $ 48,279

EXPENSES

Management fee $ 4,148

Non-interested trustees' compensation 4

Total expenses before reductions 4,152

Expense reductions (34) 4,118

NET INTEREST INCOME 44,161

NET REALIZED GAIN (LOSS) ON INVESTMENTS 62

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 44,223

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED OCTOBER APRIL 30,
31, 1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 44,161 $ 91,555
Net interest income

Net realized gain (loss) 62 (47)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 44,223 91,508
FROM OPERATIONS

Distributions to shareholders from net interest income (44,161) (91,555)

Share transactions at net asset value of $1.00 per share 916,926 1,906,021
Proceeds from sales of shares

Reinvestment of distributions from net interest income 42,686 87,350

Cost of shares redeemed (905,640) (1,876,256)

NET INCREASE (DECREASE) IN NET ASSETS AND SHARES 53,972 117,115
RESULTING FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 54,034 117,068

NET ASSETS

Beginning of period 1,794,763 1,677,695

End of period $ 1,848,797 $ 1,794,763

</TABLE>

FINANCIAL HIGHLIGHTS

<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR NINE MONTH YEAR ENDED JULY 31,
ENDED OCTOBER ENDED PERIOD
31, 1996 APRIL 30, ENDED
APRIL 30,

(UNAUDITED) 1996 1995 1994 1993 1992

</TABLE>

<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 .024 .051 .036 .030 .028 .046
Investment
Operations
Net interest income

Less Distributions

From net interest (.024) (.051) (.036) (.030) (.028) (.046)
income

Net asset value, $ .1000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
end of period

TOTAL RETURN B 2.44% 5.25% 3.66% 2.99% 2.87% 4.70%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 1,849 $ 1,795 $ 1,678 $ 1,556 $ 1,749 $ 2,475
period (in millions)

Ratio of expenses to .45% .45% .45% A .45% .42% .25%
average net assets A ,C C C C

Ratio of expenses to .45% .43% .45% A .45% .42% .25%
average net assets A D
after expense
reductions

Ratio of net interest 4.79% 5.14% 4.85% A 2.94% 2.85% 4.61%
income to average A
net assets

</TABLE>

6. SIGNIFICANT ACCOUNTING POLICIES.
Spartan U.S. Treasury Money Market Fund (the fund) is a fund of Fidelity
Hereford Street 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 financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. 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 substantially 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 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.
7. OPERATING POLICIES.
REVERSE REPURCHASE AGREEMENTS. At all times that a reverse repurchase
agreement is outstanding, the fund identifies cash and liquid securities as
segregated in its custodian records with a value at least equal to its
obligation under the agreement. On October 31, 1996, the fund had a reverse
repurchase agreement amounting to $89,921,000 at 4.25% outstanding. The
agreement, which matured November 1, 1996 was collateralized by $90,000,000
of U.S. Treasury Bills due November 7, 1996.
8. 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 .45% of the fund's average net
assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$18,000 for the period.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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.
9. EXPENSE REDUCTIONS.
FMR has entered into arrangements on behalf of the fund with the fund's
custodian and transfer agent whereby interest earned on uninvested cash
balances was used to offset a portion of the fund's expenses. During the
period, the fund's expenses were reduced by $34,000 under these
arrangements.
MANAGING YOUR INVESTMENTS

TO WRITE FIDELITY

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
Sarah H. Zenoble, Vice President
Leland C. Barron, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assistant Treasurer
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*
ADVISORY BOARD
William O. McCoy
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
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress 1-800-544-5555
SM
* INDEPENDENT TRUSTEES
AUTOMATED LINE FOR QUICKEST SERVICE

SPARTAN(registered trademark)

(registered trademark)
MONEY MARKET
FUND

SEMIANNUAL REPORT
OCTOBER 31, 1996
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 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.

NOTES 24 Notes to the financial statements.

Spartan Money Market Fund 2.58% 5.28% 24.29% 54.72%

All Taxable Money Market Funds Averag 2.44% 5.01% 21.82% 49.05%
e

CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set 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, the value of your
investment would be $1,050. To measure how the fund's performance stacked
up against its peers, you can compare it to the all taxable money market
funds average, which reflects the performance of 815 taxable money market
funds with similar objectives tracked by IBC Financial Data, Inc. over the
past six months. (The periods covered by IBC Financial Data, Inc. numbers
are the closest available match to those covered by the fund.)
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1996 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND

Spartan Money Market Fund 5.28% 4.44% 5.77%

All Taxable Money Market Funds Averag 5.00% 4.02% 5.28%
e

5.44% 5.30% 5.02% 5.11% 5.12%
Spartan Money Market
Fund

All Taxable Money Market 5.22% 5.01% 4.75% 4.82% 4.82%
Funds Average

11/1/95 1/31/96 5/1/96 7/31/96 10/30/96

2.85% 2.81% 2.67% 2.69% 2.66%
MMDA

Row: 1, Col: 1, Value: 5.805
Row: 1, Col: 2, Value: 5.649999999999999
Row: 1, Col: 3, Value: 2.9
Row: 2, Col: 1, Value: 5.705
Row: 2, Col: 2, Value: 5.31
Row: 2, Col: 3, Value: 2.865
Row: 3, Col: 1, Value: 5.319999999999999
Row: 3, Col: 2, Value: 4.95
Row: 3, Col: 3, Value: 2.65
Row: 4, Col: 1, Value: 5.42
Row: 4, Col: 2, Value: 5.0
Row: 4, Col: 3, Value: 2.66
Row: 5, Col: 1, Value: 5.44
Row: 5, Col: 2, Value: 5.0
Row: 5, Col: 3, Value: 2.635
6% -
5% -
4% -
3% -
2% -
1% -
0%
Spartan
Money Market Fund
All Taxable Money
Market Funds Average
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. You can
compare these yields to the all taxable money market funds average and the
bank money market deposit account (MMDA) average. Figures for the all
taxable money market funds average are from IBC Financial Data, Inc. The
MMDA average is supplied by BANK RATE MONITOR.(Trademark)
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, WHAT HAS THE INVESTMENT ENVIRONMENT BEEN LIKE OVER THE PAST SIX
MONTHS?
A. At the beginning of the period, many market participants felt the
economy was doing better than expected. Inflationary pressures were
building, long-term interest rates were rising and the short-term yield
curve was getting steeper. The market sentiment about a strong economy came
on the heels of rising commodity prices and other indications of economic
strength through the first four months of the year. As a result of these
signs, the market anticipated that the Federal Reserve Board would raise
the interest rate banks charge each other, known as the federal funds rate,
in order to slow economic growth and head off possible inflation. Each
month over the summer, interest rates in the credit markets tended to trade
within a range. Interest rates tended to rise immediately following the
release of each month's employment report, only to decline following benign
inflation readings later. Interest rates would back up again as the Fed's
regular meeting approached - because the market feared an increase in the
fed funds rate - and then would fall once the Fed didn't tighten. While the
economy was expanding at a strong pace, the Fed stayed on the sidelines
waiting for its forecasted slowdown to take shape. As we moved into the
fall, consumption slowed, and it became evident to many in the market that
the Fed would stand pat for the foreseeable future, at least through
November.
Q. WHAT SORT OF STRATEGY DID YOU PURSUE IN RESPONSE TO THIS CLIMATE?
A. Over the first half of the period, I kept the fund more aggressively
positioned than similar funds, with a weighted average maturity of about 60
to 65 days. As we progressed through July and into August, I was
comfortable maintaining this longer maturity and capturing higher yields.
While there was a risk the Fed would raise rates, I didn't feel it would do
so for several months. As the risk of Fed tightening became more palpable
toward the end of August, though, I backed off somewhat, reducing the
fund's average maturity for a time. When the Fed met at the end of August
and took no action, I started to lengthen the fund's maturity again, so
that it stood at 60 days at the end of October.
Q. HOW DID THE FUND PERFORM?
A. Better than its peers. Spartan Money Market Fund's seven-day yield on
October 31, 1996, was 5.12% compared to 5.02% six months ago. Through
October 31, 1996, the fund's six-month total return was 2.58% compared to
2.44% for the all taxable money market funds average, according to IBC
Financial Data, Inc.
Q. WHAT'S YOUR OUTLOOK?
A. For now, it appears the market has priced out any notion that the Fed is
going to raise interest rates until late in the first quarter of 1997. Even
if we see a bounce in consumer activity in the fourth quarter of 1996, I
don't think that the increase will hurt the market because it looks as if
that's what the market expects. While the market probably will stay fairly
static in the foreseeable future, it is unlikely to stay that way for a
protracted period of time. Evidence at this time suggests that the Fed is
likely to remain on hold until late in the first quarter or early in the
second quarter of 1997. In the meantime, I'll probably keep the fund more
aggressively positioned than other funds heading into the new year.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.

FUND FACTS
GOAL: seeks high current
income with share price
stability by investing in
high-quality, short-term
money market securities of all
types
START DATE: January 23, 1989
SIZE: as of October 31, 1996,
more than $8 billion
MANAGER: John Todd, since
1989; manager, Fidelity
Select Money Market
Portfolio, since 1991; Daily
Money Fund: Money Market
Portfolio and Fidelity
Institutional Cash
Portfolios: Money Market
Portfolio, since 1992; joined
Fidelity in 1981
(checkmark)
WORDS TO KNOW
BANKERS' ACCEPTANCE (BA): A
short-term note whose
payment is guaranteed by a
bank.
CERTIFICATE OF DEPOSIT (CD): An
interest-bearing deposit with a
specific maturity. Large
denomination CDs, like the
fund buys, have negotiable
interest rates and can be sold
in the secondary market.
COMMERCIAL PAPER: A short-term
note from a bank or
corporation.
FEDERAL FUNDS RATE: The interest
rate banks charge each other
for overnight loans.
MATURITY: The time remaining
before an issuer is scheduled
to repay the principal amount
on a debt security. When the
fund's average maturity,
weighted by dollar amount, is
short, the fund manager is
expecting rates to rise. When
the average maturity is
neutral, the manager wants the
flexibility to respond to rising
rates, while still capturing a
portion of the higher yields
available from issues with
longer maturities.
TIME DEPOSIT (TD): An
interest-bearing deposit with a
specific maturity. Large
denomination TDs, like the
fund buys, differ from CDs in
that they can't be sold in the
secondary market.
INVESTMENT CHANGES

MATURITY DIVERSIFICATION
DAYS % OF FUND ASSETS % OF FUND ASSETS % OF FUND ASSETS
10/31/96 4/30/96 10/31/95

0 - 30 45 25 51

31 - 90 26 34 22

91 - 180 25 23 23

181 - 397 4 18 4

WEIGHTED AVERAGE MATURITY
10/31/96 4/30/96 10/31/95

Spartan Money Market
Fund 60 days 55 days 62 days

All Taxable 53 days
Money Market Funds 52 days 56 days
Average *

ASSET ALLOCATION (% OF FUNDS INVESTMENTS)
AS OF OCTOBER 31, 1996 AS OF APRIL 30, 1996

Row: 1, Col: 1, Value: 51.0
Row: 1, Col: 2, Value: 34.0
Row: 1, Col: 3, Value: 11.0
Row: 1, Col: 4, Value: 4.0
Row: 1, Col: 1, Value: 53.0
Row: 1, Col: 2, Value: 33.0
Row: 1, Col: 3, Value: 11.0
Row: 1, Col: 4, Value: 3.0
Bank CDs,
BAs, TDs,
and notes 51%
Commercial
paper 34%
Government
securities 11%
Other 4%
Bank CDs,
BAs, TDs,
and notes 53%
Commercial
paper 33%
Government
securities 11%
Other 3%
* SOURCE: IBC'S MONEY FUND REPORT(registered trademark)
INVESTMENTS OCTOBER 31, 1996 (UNAUDITED)

Showing Percentage of Total Value of Investments

CERTIFICATES OF DEPOSIT - 33.7%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
DOMESTIC CERTIFICATES OF DEPOSIT - 3.9%
Bank of New York - Delaware
1/29/97 5.31% (a) $ 27,000 $ 27,000
Chase Manhattan Bank, NA
1/8/97 5.85 100,000 100,000
3/10/97 5.75 30,000 30,000
Harris Trust & Savings Bank, Chicago
12/16/96 5.32 100,000 100,000
Mellon Bank, NA
3/4/97 5.82 20,000 20,000
Morgan Guaranty Trust Co.
8/12/97 5.80 75,000 74,959
U.S. National Bank of Oregon
11/7/96 5.28 10,000 10,000
361,959
CHICAGO BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 1.4%
ABN-AMRO Bank
12/02/96 5.51 50,000 50,000
2/3/97 5.55 75,000 75,000
125,000
PORTLAND BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 0.8%
Bank of Nova Scotia
12/17/96 5.30 50,000 50,000
2/19/97 5.54 25,000 25,000
75,000
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - 20.9%
ABN-AMRO Bank
11/15/96 5.45 60,000 60,000
3/3/97 5.77 75,000 75,000
Bank of Tokyo - Mitsubishi Ltd.
11/7/96 5.51 6,000 6,000
Banque Nationale de Paris
11/4/96 5.37 75,000 75,000
11/5/96 5.36 35,000 35,000
12/2/96 5.30 40,000 40,000
3/10/97 5.77 25,000 25,000
3/11/97 5.76 25,000 25,003
3/13/97 5.65 20,000 20,009
Bayerische Hypotheken und Weschel
11/18/96 5.28 24,000 24,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Bayerische Landesbank Girozentrale
1/22/97 5.53% (a) $ 57,000 $ 57,000
Bayerische Vereinsbank A.G.
2/3/97 5.57 70,000 70,000
Caisse Nationale de Credit Agricole
2/18/97 5.41 50,000 50,000
3/24/97 5.62 150,000 150,000
Canadian Imperial Bank of Commerce
12/5/96 5.63 20,000 20,000
Commonwealth Bank of Australia
11/8/96 5.42 20,000 20,000
Deutsche Bank, A.G.
11/13/96 5.45 5,000 5,000
12/2/96 5.28 137,000 137,000
2/10/97 5.41 50,000 50,000
3/4/97 5.76 50,000 50,000
9/10/97 6.10 35,000 34,997
Landesbank Hessen - Thuringen
9/5/97 6.20 55,000 55,004
National Westminster Bank, PLC
2/12/97 5.54 50,000 50,000
2/18/97 5.42 75,000 75,000
2/24/97 5.42 17,000 17,000
Rabobank Nederland, N.V.
11/14/96 5.45 45,000 45,000
Royal Bank of Canada
12/31/96 5.52 20,000 19,999
Sanwa Bank, Ltd.
11/4/96 5.69 52,000 52,000
11/15/96 5.37 40,000 40,000
11/18/96 5.36 11,000 11,000
Societe Generale
11/1/96 5.38 50,000 50,000
12/13/96 5.30 75,000 75,002
2/7/97 5.45 50,000 50,003
4/8/97 5.50 25,000 24,999
Sumitomo Bank, Ltd.
11/14/96 5.50 17,000 17,000
11/18/96 5.37 51,000 51,000
1/21/97 5.54 27,000 27,000
Swiss Bank Corp.
2/10/97 5.41 60,000 60,000
3/4/97 5.45 14,000 13,984
4/21/97 5.50 15,000 15,000
6/3/97 5.96 50,000 50,000
CERTIFICATES OF DEPOSIT - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
NEW YORK BRANCH, YANKEE DOLLAR, FOREIGN BANKS - CONTINUED
Westdeutsche Landesbank
11/25/96 5.28% $ 50,000 $ 50,000
4/7/97 5.50 25,000 25,000
4/21/97 5.50 18,000 18,000
Westpac Banking Corp.
3/3/97 5.80 12,000 12,000
1,933,000
LONDON BRANCH, EURODOLLAR, FOREIGN BANKS - 6.7%
Abbey National Treasury Services
12/30/96 5.34 50,000 50,000
2/18/97 5.42 30,000 30,000
Bank of Scotland
2/7/97 5.41 13,000 13,003
Bank of Scotland Treasury Service
2/20/97 5.55 20,000 20,000
3/17/97 5.75 20,000 20,000
Bank of Tokyo - Mitsubishi Ltd.
1/28/97 5.50 8,000 8,001
Bayerische Hypotheken-und Weschel
11/29/96 5.50 50,000 49,999
12/6/96 5.44 15,000 15,002
12/17/96 5.64 40,000 40,002
2/21/97 5.78 25,000 24,981
3/10/97 5.80 27,000 27,000
Bayerische Landesbank Girozentrale
2/19/97 5.75 25,000 24,983
Bayerische Vereinsbank A.G.
12/3/96 5.51 50,000 50,000
Krediet Bank
11/18/96 5.40 50,000 50,000
National Westminster Bank, PLC
11/7/96 5.40 100,000 100,000
Sanwa Bank, Ltd.
1/24/97 5.52 10,000 10,000
1/27/97 5.51 5,000 5,000
1/29/97 5.51 17,000 17,001
1/31/97 5.53 18,000 18,001
Sumitomo Bank, Ltd.
1/6/97 5.52 21,000 21,001
1/6/97 5.55 6,000 6,001
Swiss Bank Corp.
12/13/96 5.31 18,000 18,004
617,979
TOTAL CERTIFICATES OF DEPOSIT 3,112,938
COMMERCIAL PAPER - 33.7%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
ABN-AMRO North America Finance, Inc.
3/6/97 5.76% $ 50,000 $ 49,028
AC Aquisition Holding Co.
11/19/96 5.30 7,640 7,620
11/20/96 5.30 12,000 11,967
ANZ (DE), Inc.
11/27/96 5.37 25,000 24,904
American Express Credit Corp.
11/18/96 5.30 30,000 29,925
11/25/96 5.30 50,000 49,825
American Home Food Products, Inc.
11/19/96 5.29 20,000 19,947
American Home Products
11/5/96 5.35 30,000 29,982
11/12/96 5.30 10,000 9,984
11/20/96 5.30 5,000 4,986
Associates Corp. of North America
11/1/96 5.75 100,000 100,000
Bank of Scotland Treasury Services
11/8/96 5.39 7,000 6,993
Barclays U.S. Funding Corp.
11/1/96 5.30 70,000 70,000
Bayerische Vereinsbank A.G.
12/30/96 5.65 25,000 24,775
2/18/97 5.42 22,000 21,646
Bear Stearns Cos., Inc.
11/6/96 5.33 20,000 19,985
11/20/96 5.40 20,000 19,944
Beneficial Corp.
12/11/96 5.32 27,000 26,842
Bradford & Bingley Building Society
11/25/96 5.65 10,000 9,963
CIT Group Holdings, Inc.
11/25/96 5.39 25,000 24,911
12/2/96 5.40 25,000 24,885
Caisse d'Amortissement de la Dette Sociale
12/20/96 5.64 45,000 44,664
12/23/96 5.64 25,000 24,802
12/27/96 5.66 50,000 49,572
12/27/96 5.67 20,000 19,828
3/5/97 5.76 30,000 29,421
4/29/97 5.90 100,000 97,191
6/3/97 6.01 125,000 120,727
Caisse des Depots et Consignation
11/6/96 5.30 50,000 49,963
2/19/97 5.41 17,000 16,724
Cheltenham & Gloucester Building Society
11/21/96 5.39 10,000 9,970
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Chrysler Financial Corporation
11/4/96 5.40% $ 10,000 $ 9,995
11/12/96 5.43 5,000 4,992
11/19/96 5.38 18,000 17,952
11/20/96 5.38 18,000 17,949
12/2/96 5.45 9,000 8,958
12/3/96 5.38 9,000 8,957
12/4/96 5.39 17,000 16,917
12/12/96 5.39 10,000 9,939
Citibank Credit Card Master Trust I (Dakota Certificate Program)
11/6/96 5.38 10,000 9,993
11/12/96 5.39 15,000 14,976
11/19/96 5.31 15,000 14,960
11/20/96 5.39 16,000 15,955
Commercial Credit Co.
11/12/96 5.30 9,000 8,986
CoreStates Capital Corp.
11/8/96 5.37 (a) 20,000 20,000
Deutsche Bank, A.G.
4/11/97 5.70 20,000 19,506
Eiger Capital Corp.
11/25/96 5.37 35,000 34,876
12/2/96 5.30 25,000 24,887
12/5/96 5.31 25,000 24,875
Electronic Data Systems
11/12/96 5.42 17,000 16,972
Enterprise Funding Corp.
11/5/96 5.35 30,000 29,982
11/8/96 5.40 5,665 5,659
12/3/96 5.30 22,089 21,986
Fina Oil & Chemical Co.
11/4/96 5.34 10,000 9,996
11/5/96 5.35 10,000 9,994
Ford Motor Credit Corp.
11/12/96 5.30 50,000 49,919
11/13/96 5.30 50,000 49,912
11/18/96 5.43 12,000 11,970
GTE Corp.
11/19/96 5.34 15,000 14,960
General Electric Capital Corp.
11/1/96 5.65 60,000 60,000
11/15/96 5.61 75,000 74,840
11/25/96 5.37 50,000 49,823
1/22/97 5.75 50,000 49,365
1/27/97 5.76 50,000 49,323
2/10/97 5.75 50,000 49,217
2/19/97 5.42 25,000 24,594
3/5/97 5.76 35,000 34,325
3/12/97 5.76 50,000 48,981
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
General Electric Co.
11/25/96 5.27% $ 100,000 $ 99,650
12/31/96 5.49 25,000 24,775
General Motors Acceptance Corp.
11/26/96 5.68 27,000 26,896
12/4/96 5.70 26,000 25,868
2/20/97 5.70 17,000 16,709
2/24/97 5.71 17,000 16,699
2/25/97 5.71 36,000 35,356
3/31/97 5.70 32,000 31,261
4/14/97 5.63 35,000 34,127
4/15/97 5.63 17,000 16,573
Generale Bank
12/5/96 5.46 25,000 24,873
2/5/97 5.57 25,000 24,639
4/23/97 5.50 50,000 48,715
4/25/97 5.50 25,000 24,350
Goldman Sachs Group, L.P. (The)
11/5/96 5.33 10,000 9,994
4/29/97 5.50 45,000 43,803
IBM Credit Corp.
11/26/96 5.38 45,000 44,833
Merrill Lynch & Co., Inc.
2/4/97 5.63 25,000 24,639
3/11/97 5.76 24,000 23,515
3/12/97 5.68 12,000 11,757
Morgan Stanley Group, Inc.
2/4/97 5.40 25,000 24,649
National Australia Funding, Inc.
11/15/96 5.45 50,000 49,897
1/27/97 5.78 25,000 24,661
National Bank of Canada
11/25/96 5.40 10,000 9,964
12/30/96 5.50 10,000 9,911
2/27/97 5.44 5,000 4,912
Nationwide Building Society
11/7/96 5.42 50,000 49,955
11/8/96 5.42 13,000 12,986
2/10/97 5.43 8,000 7,880
2/24/97 5.45 10,000 9,829
2/25/97 5.45 9,000 8,848
New Center Asset Trust
11/13/96 5.31 40,000 39,930
12/2/96 5.63 15,000 14,929
2/20/97 5.63 18,000 17,696
3/11/97 5.79 10,000 9,797
COMMERCIAL PAPER - CONTINUED
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
Philip Morris Cos., Inc.
11/5/96 5.33% $ 20,000 $ 19,988
Preferred Receivables Funding Corp.
11/4/96 5.36 10,000 9,996
SBC Finance (DE), Inc.
3/11/97 5.76 75,000 73,483
Sherwood Medical Company
11/5/96 5.35 10,000 9,994
Textron, Inc.
11/4/96 5.53 4,000 3,998
11/6/96 5.44 2,000 1,998
11/6/96 5.50 6,000 5,995
11/15/96 5.43 4,000 3,992
11/18/96 5.43 4,000 3,990
12/3/96 5.40 1,000 995
12/5/96 5.41 2,000 1,990
Toronto Dominion Holdings USA, Inc.
2/3/97 5.75 25,000 24,636
3/5/97 5.80 19,000 18,631
Unifunding, Inc.
12/6/96 5.33 5,000 4,974
Westpac Capital Corp.
3/11/97 5.76 25,000 24,494
Woolwich Equitable Building Society
11/29/96 5.44 10,000 9,958
TOTAL COMMERCIAL PAPER 3,121,453
FEDERAL AGENCIES - 8.7%
FEDERAL HOME LOAN BANK - AGENCY COUPONS (A) - 0.6%
12/13/96 5.51 29,000 28,998
12/20/96 5.51 29,000 28,998
57,996
FEDERAL NATIONAL MORTGAGE ASSOC. - AGENCY COUPONS (A) - 8.1%
11/1/96 5.42 200,000 199,925
11/2/96 5.37 200,000 199,855
11/5/96 5.33 35,000 34,970
11/15/96 5.32 75,000 74,964
11/29/96 5.31 58,000 57,971
12/20/96 5.51 87,000 86,991
12/20/96 5.54 30,000 29,988
1/17/97 5.42 68,000 67,989
752,653
TOTAL FEDERAL AGENCIES 810,649
U.S. TREASURY OBLIGATIONS - 2.7%
DUE ANNUALIZED YIELD AT PRINCIPAL AMOUNT VALUE (NOTE 1)
DATE TIME OF PURCHASE (000S) (000S)
U.S. TREASURY BILLS - 2.7%
12/19/96 5.17% $ 250,000 $ 248,384
BANK NOTES - 3.8%
Bank of America National Trust & Savings Assoc.
3/12/97 5.75 25,000 25,000
Beneficial Corp.
11/3/96 5.65 (a) 8,000 8,000
First Bank N.A. - Minnesota
11/20/96 5.35 (a) 24,000 24,000
First Union National Bank of North Carolina, N.A.
11/13/96 5.46 25,000 25,000
12/27/96 5.56 (a) 45,000 44,997
Household Bank, N.A.
11/15/96 5.42 10,000 10,000
Key Bank, NA
11/1/96 5.37 (a) 25,000 24,988
11/1/96 5.38 (a) 44,000 43,978
LaSalle National Bank
9/8/97 6.12 10,000 10,000
9/10/97 6.15 15,000 15,000
Morgan Guaranty Trust Co.
6/6/97 6.00 25,000 24,993
PNC Bank, N.A.
11/8/96 5.42 47,000 46,981
11/20/96 5.38 (a) 50,000 49,997
TOTAL BANK NOTES 352,934
MASTER NOTES (A) - 2.5%
Goldman Sachs Group, L.P. (The) (b)
11/8/96 5.50 47,000 47,000
J.P. Morgan Securities
11/7/96 5.38 105,000 105,000
11/7/96 5.39 29,000 29,000
Norwest Corp.
11/1/96 5.38 53,000 53,000
TOTAL MASTER NOTES 234,000
MEDIUM-TERM NOTES (A) - 3.6%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Beneficial Corp.
12/5/96 5.64 $ 35,000 $ 34,994
Commonwealth Life Insurance Co. (b)
11/1/96 5.64 35,000 35,000
General Motors Acceptance Corp.
11/1/96 5.68 47,000 47,000
2/13/97 5.42 18,000 18,000
Merrill Lynch & Co.
11/18/96 5.38 35,000 34,995
Morgan Stanley Group, Inc.
11/1/96 5.40 41,000 41,000
Norwest Corp.
4/22/97 5.55 50,000 50,000
Pacific Mutual Life Insurance Co. (b)
12/9/96 5.72 18,000 18,000
Transamerica Life Insurance and Annuity Co. (b)
11/1/96 5.46 20,000 20,000
12/15/96 5.59 30,000 30,000
TOTAL MEDIUM-TERM NOTES 328,989
SHORT-TERM NOTES (A) - 4.6%
Capital One Funding Corp. (1994-E)
11/7/96 5.42 7,755 7,755
Capital One Funding Corp. (1995-D)
11/7/96 5.42 10,006 10,006
Capital One Funding Corp. (1995-E)
11/7/96 5.42 5,900 5,900
Capital One Funding Corp. (1996-B)
11/7/96 5.42 9,900 9,900
Capital One Funding Corp. (1996-H)
11/7/96 5.42 8,682 8,682
Liquid Asset Backed Securities Trust (1996-1) (c)
11/15/96 5.55 41,000 41,000
Liquid Asset Backed Securities Trust (1996-2) (c)
11/1/96 5.47 57,000 57,000
SMM Trust (1995-N) (c)
11/8/96 5.55 19,000 19,000
SMM Trust (1995-P) (c)
12/15/96 5.68% 37,000 37,000
SMM Trust (1996-I) (c)
11/29/96 5.43 50,000 50,000
SMM Trust (1996-V) (c)
12/26/96 5.71 175,000 175,000
TOTAL SHORT-TERM NOTES 421,243
TIME DEPOSITS - 2.9%
DUE ANNUALIZED YIELD AT PRINCIPAL VALUE
DATE TIME OF PURCHASE AMOUNT (NOTE 1)
Bank of Tokyo - Mitsubishi Ltd.
11/1/96 5.75 $ 75,000 $ 75,000
11/4/96 5.47 36,000 36,000
11/12/96 5.38 25,000 25,000
12/2/96 5.38 51,000 51,000
12/4/96 5.38 10,000 10,000
Caisse Nationale de Credit Agricole
11/1/96 5.75 50,000 50,000
Sumitomo Bank, Ltd.
11/12/96 5.41 25,000 25,000
TOTAL TIME DEPOSITS 272,000
MUNICIPAL SECURITIES (A) - 0.1%
New York Aviation Board
11/14/96 5.32 10,450 10,450
REPURCHASE AGREEMENTS - 3.7%
MATURITY AMOUNT
(000S)
In a joint trading account:
(U.S. Government Obligations):
dated 10/2/96 due 11/4/96
At 5.32% $ 100,488 100,000
dated 10/8/96 due 11/12/96
At 5.30% 100,515 100,000
dated 10/16/96 due 11/18/96
At 5.30% 40,194 40,000
dated 10/31/96 due 11/1/96
At 5.60% 106,177 106,160
TOTAL REPURCHASE AGREEMENTS 346,160
TOTAL INVESTMENTS - 100% $ 9,259,200
Total Cost for Income Tax Purposes $ 9,259,200
LEGEND
10. 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.
11. Restricted security; subject to resale restrictions.
12. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in trans- actions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $379,000,000 or 4.24% of net
assets.
INCOME TAX INFORMATION
At April 30, 1996, the fund had a capital loss carryforward of
approximately $2,831,000 of which $301,000, $1,893,000, $476,000 and
$161,000 will expire on April 30, 2001, 2002, 2003 and 2004, respectively.
FINANCIAL STATEMENTS

STATEMENT OF ASSETS AND LIABILITIES

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) OCTOBER 31, 1996 (UNAUDITED)

ASSETS

Investment in securities, at value (including $ 9,259,200
repurchase agreements of $346,160) -
See accompanying schedule

Interest receivable 45,392

TOTAL ASSETS 9,304,592

LIABILITIES

Payable to custodian bank $ 7

Payable for investments purchased 348,389

Share transactions in process 18,299

Distributions payable 755

Accrued management fee 3,381

TOTAL LIABILITIES 370,831

NET ASSETS $ 8,933,761

Net Assets consist of:

Paid in capital $ 8,936,515

Accumulated net realized gain (loss) on investments (2,754)

NET ASSETS, for 8,936,004 shares outstanding $ 8,933,761

NET ASSET VALUE, offering price and redemption price per $1.00
share ($8,933,761 (divided by) 8,936,004 shares)

</TABLE>

STATEMENT OF OPERATIONS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED OCTOBER 31, 1996 (UNAUDITED)

INTEREST INCOME $ 238,004

EXPENSES

Management fee $ 19,448

Non-interested trustees' compensation 20

Total expenses before reductions 19,468

Expense reductions (89) 19,379

NET INTEREST INCOME 218,625

NET REALIZED GAIN (LOSS) ON INVESTMENTS 77

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 218,702

</TABLE>

STATEMENT OF CHANGES IN NET ASSETS

<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED APRIL 30,
OCTOBER 31, 1996 1996
(UNAUDITED)

INCREASE (DECREASE) IN NET ASSETS

Operations $ 218,625 $ 451,857
Net interest income

Net realized gain (loss) 77 (161)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 218,702 451,696
FROM OPERATIONS

Distributions to shareholders from net interest income (218,625) (451,857)

Share transactions at net asset value of $1.00 per share 5,920,497 12,078,072
Proceeds from sales of shares

Reinvestment of distributions from net interest income 213,586 435,783

Cost of shares redeemed (5,650,944) (11,698,500)

NET INCREASE (DECREASE) IN NET ASSETS RESULTING 483,139 815,355
FROM SHARE TRANSACTIONS

TOTAL INCREASE (DECREASE) IN NET ASSETS 483,216 815,194

NET ASSETS

Beginning of period 8,450,545 7,635,351

End of period $ 8,933,761 $ 8,450,545

</TABLE>

FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED APRIL 30,
ENDED
OCTOBER 31,
1996

(UNAUDITED) 1996 1995 1994 1993 1992

<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 .026 .054 .049 .031 .035 .053
Investment
Operations
Net interest income

Less Distributions (.026) (.054) (.049) (.031) (.035) (.053)
From net interest
income

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

TOTAL RETURN B 2.59% 5.57% 4.97% 3.14% 3.51% 5.41%

RATIOS AND SUPPLEMENTAL DATA

Net assets, end of $ 8,934 $ 8,451 $ 7,635 $ 6,453 $ 4,542 $ 5,371
period (in millions)

Ratio of expenses to .45% A .45% .44% .31% .30% .34%
average net assets C C

Ratio of expenses to .45% A .42% .44% .31% .30% .34%
average net assets D
after expense
reductions

Ratio of net interest 5.05% A 5.45% 4.89% 3.12% 3.46% 5.32%
income to average
net assets

</TABLE>

1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan Money Market Fund (the fund) is a fund of Fidelity Hereford Street
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 financial statements have been
prepared in conformity with generally accepted accounting principles which
permit management to make certain estimates and assumptions at the date of
the financial statements. 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 substantially 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 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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase for U.S. Treasury or Federal
Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
3. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, 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
.45% of the fund's average net assets.
FMR also bears the cost of providing shareholder services to the fund. To
offset the cost of providing these services, FMR or its affiliates collect
certain transaction fees from the fund's shareholders which amounted to
$109,000 for the period.
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.
4. EXPENSE REDUCTIONS.
FMR has entered into an arrangement on behalf of the fund with the fund's
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of the fund's expenses. During the period, the fund's
expenses were reduced by $89,000 under this arrangement.
MANAGING YOUR INVESTMENTS

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
Sarah H. Zenoble, Vice President
John Todd, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Thomas D. Maher, Assistant Vice President
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
Thomas J. Simpson, Assitant Treasurer
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*
ADVISORY BOARD
William O. McCoy
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
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress 1-800-544-5555
SM
* INDEPENDENT TRUSTEES
AUTOMATED LINE FOR QUICKEST SERVICE