UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-2861
Fidelity Money Market Trust
(Exact name of registrant as specified in charter)
245 Summer St., Boston, Massachusetts 02210
(Address of principal executive offices) (Zip code)
Marc Bryant, Secretary
245 Summer St.
Boston, Massachusetts 02210
(Name and address of agent for service)
Registrant's telephone number, including area code:
617-563-7000
| |
Date of fiscal year end: | August 31 |
| |
Date of reporting period: | August 31, 2016 |
Item 1.
Reports to Stockholders
Fidelity Money Market Trust Retirement Government Money Market Portfolio
Annual Report August 31, 2016 |
 |
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
The fund seeks to obtain as high a level of current income as is consistent with the preservation of capital and liquidity by investing in high-quality, short-term money market securities issued or guaranteed as to principal and interest by the U.S. Government, or by any of its agencies or instrumentalities.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary/Performance (Unaudited)
Effective Maturity Diversification
| Days | % of fund's investments 8/31/16 | % of fund's investments 2/29/16 | % of fund's investments 8/31/15 |
| 1 - 7 | 29.5 | 26.1 | 37.4 |
| 8 - 30 | 18.7 | 27.1 | 30.3 |
| 31 - 60 | 16.7 | 22.3 | 12.9 |
| 61 - 90 | 24.4 | 17.0 | 7.7 |
| 91 - 180 | 10.1 | 6.5 | 11.7 |
| > 180 | 0.6 | 1.0 | 0.0 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940.
Asset Allocation (% of fund's net assets)
| As of August 31, 2016 |
| | U.S. Treasury Debt | 9.0% |
| | U.S. Government Agency Debt | 69.5% |
| | Repurchase Agreements | 22.5% |
| | Net Other Assets (Liabilities)* | (1.0)% |
* Net Other Assets (Liabilities) are not included in the pie chart
| As of February 29, 2016 |
| | U.S. Treasury Debt | 3.7% |
| | U.S. Government Agency Debt | 76.6% |
| | Repurchase Agreements | 20.9% |
| | Net Other Assets (Liabilities)* | (1.2)% |
* Net Other Assets (Liabilities) are not included in the pie chart
Current And Historical 7-Day Yields
| | 8/31/16 | 5/31/16 | 2/29/16 | 11/30/15 | 8/31/15 |
| Retirement Government Money Market Portfolio | 0.07% | 0.03% | 0.01% | 0.01% | 0.01% |
Yield refers to the income paid by the Fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money investing in the Fund.
Percentages shown as 0.0% may reflect amounts less than 0.05%.
Investments August 31, 2016
Showing Percentage of Net Assets
| U.S. Treasury Debt - 9.0% | | | | |
| | | Yield(a) | Principal Amount (000s) | Value (000s) |
| U.S. Treasury Obligations - 9.0% | | | | |
| U.S. Treasury Bills | | | | |
| 10/20/16 to 2/23/17 | | 0.31 to 0.50 (b)% | $197,000 | $196,729 |
| U.S. Treasury Notes | | | | |
| 10/31/16 to 1/31/17 | | 0.34 to 0.45 | 78,000 | 78,213 |
| TOTAL U.S. TREASURY DEBT | | | | |
| (Cost $274,942) | | | | 274,942 |
|
| U.S. Government Agency Debt - 69.5% | | | | |
| Federal Agencies - 69.5% | | | | |
| Fannie Mae | | | | |
| 12/19/16 to 1/11/18 | | 0.41 to 0.63 (c) | 72,500 | 72,435 |
| Federal Farm Credit Bank | | | | |
| 9/8/16 to 2/10/17 | | 0.44 to 0.53 (c) | 37,000 | 37,007 |
| Federal Home Loan Bank | | | | |
| 9/1/16 to 2/26/18 | | 0.32 to 0.77 (c)(d) | 1,912,585 | 1,912,273 |
| Freddie Mac | | | | |
| 11/14/16 to 1/12/18 | | 0.47 to 0.75 (c) | 104,000 | 103,963 |
| TOTAL U.S. GOVERNMENT AGENCY DEBT | | | | |
| (Cost $2,125,678) | | | | 2,125,678 |
| U.S. Government Agency Repurchase Agreement - 14.7% | | | |
| | | Maturity Amount (000s) | Value (000s) |
| In a joint trading account at 0.34% dated 8/31/16 due 9/1/16 (Collateralized by U.S. Government Obligations) # | | $246,584 | $246,582 |
| With: | | | |
| BNP Paribas, S.A. at 0.35%, dated 7/8/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $3,062,005, 0.00% - 7.25%, 11/26/19 - 8/20/45) | | 3,002 | 3,000 |
| Citibank NA at: | | | |
| 0.33%, dated 8/30/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $3,088,919, 0.13% - 7.50%, 11/15/16 - 5/15/51) | | 3,000 | 3,000 |
| 0.34%, dated 8/30/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $16,477,530, 0.13% - 5.13%, 10/18/16 - 12/15/42) | | 16,001 | 16,000 |
| Deutsche Bank Securities, Inc. at: | | | |
| 0.35%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $1,020,054, 2.25%, 11/30/17) | | 1,000 | 1,000 |
| 0.37%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $4,080,112, 2.25%, 11/30/17) | | 4,000 | 4,000 |
| ING Financial Markets LLC at: | | | |
| 0.38%, dated 8/3/16 due 10/3/16 (Collateralized by U.S. Government Obligations valued at $2,041,761, 5.00%, 3/01/40) | | 2,001 | 2,000 |
| 0.4%, dated 8/26/16 due 11/1/16 (Collateralized by U.S. Government Obligations valued at $3,060,301, 5.00%, 3/01/40) | | 3,002 | 3,000 |
| 0.41%, dated: | | | |
| 8/23/16 due 10/5/16: | | | |
| (Collateralized by U.S. Government Obligations valued at $5,101,166, 4.00%, 8/01/26) | | 5,005 | 5,000 |
| (Collateralized by U.S. Government Obligations valued at $4,081,181, 5.00%, 3/01/40) | | 4,004 | 4,000 |
| 8/24/16 due 10/5/16: | | | |
| (Collateralized by U.S. Government Obligations valued at $6,123,914, 3.50%, 12/01/42) | | 6,006 | 6,000 |
| (Collateralized by U.S. Government Obligations valued at $6,123,914, 3.50%, 12/01/42) | | 6,006 | 6,000 |
| 8/30/16 due 10/5/16 (Collateralized by U.S. Government Obligations valued at $5,101,166, 4.00%, 8/01/26) | | 5,005 | 5,000 |
| 0.42%, dated: | | | |
| 7/6/16 due 9/1/16: | | | |
| (Collateralized by U.S. Government Obligations valued at $3,062,642, 5.00%, 3/01/40) | | 3,003 | 3,000 |
| (Collateralized by U.S. Government Obligations valued at $3,062,642, 5.00%, 3/01/40) | | 3,003 | 3,000 |
| 7/12/16 due 10/5/16 (Collateralized by U.S. Government Obligations valued at $6,123,657, 4.00%, 8/01/26) | | 6,006 | 6,000 |
| Merrill Lynch, Pierce, Fenner & Smith at 0.36%, dated 8/17/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $16,322,448, 4.50%, 4/20/44) | | 16,010 | 16,000 |
| Mitsubishi UFJ Securities (U.S.A.), Inc. at: | | | |
| 0.39%, dated: | | | |
| 8/3/16 due 9/1/16 (Collateralized by U.S. Government Obligations valued at $4,081,282, 2.31% - 4.10%, 10/01/36 - 8/01/46) | | 4,001 | 4,000 |
| 8/4/16 due 10/7/16 (Collateralized by U.S. Government Obligations valued at $3,060,928, 2.42% - 4.50%, 7/01/36 - 8/01/46) | | 3,002 | 3,000 |
| 8/8/16 due 10/11/16 (Collateralized by U.S. Government Obligations valued at $4,081,061, 2.13% - 4.16%, 7/01/38 - 6/01/46) | | 4,003 | 4,000 |
| 8/9/16 due 10/12/16 (Collateralized by U.S. Government Obligations valued at $9,182,287, 2.13% - 4.50%, 11/01/23 - 9/01/46) | | 9,006 | 9,000 |
| 8/17/16 due 10/17/16 (Collateralized by U.S. Government Obligations valued at $3,060,498, 3.50% - 4.00%, 6/15/42 - 8/20/46) | | 3,002 | 3,000 |
| 8/24/16 due: | | | |
| 10/26/16 (Collateralized by U.S. Government Obligations valued at $4,080,354, 2.03% - 4.00%, 6/15/42 - 9/01/46) | | 4,003 | 4,000 |
| 10/28/16 (Collateralized by U.S. Government Obligations valued at $6,120,530, 2.20% - 5.00%, 8/01/26 - 6/01/46) | | 6,004 | 6,000 |
| 0.44%, dated 7/25/16 due 10/24/16 (Collateralized by U.S. Government Obligations valued at $3,061,421, 2.00% - 4.50%, 5/20/31 - 8/01/46) | | 3,003 | 3,000 |
| Mizuho Securities U.S.A., Inc. at 0.5%, dated 8/8/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $5,151,717, 2.00% - 6.50%, 3/15/41 - 5/25/42) | | 5,006 | 5,000 |
| RBC Capital Markets Corp. at: | | | |
| 0.34%, dated 7/5/16 due 9/6/16 (Collateralized by U.S. Government Obligations valued at $6,128,082, 0.76% - 4.87%, 1/01/26 - 7/01/46) | | 6,004 | 6,000 |
| 0.35%, dated: | | | |
| 7/1/16 due 9/1/16 (Collateralized by U.S. Government Obligations valued at $4,083,637, 1.50% - 4.87%, 9/01/33 - 7/01/46) | | 4,002 | 4,000 |
| 7/11/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $7,143,768, 1.50% - 4.87%, 4/01/27 - 7/01/46) | | 7,004 | 7,000 |
| 7/15/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $6,122,857, 2.31% - 6.00%, 8/01/31 - 7/01/46) | | 6,004 | 6,000 |
| 7/18/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $9,184,077, 2.39% - 5.50%, 6/01/28 - 7/01/46) | | 9,005 | 9,000 |
| 7/19/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $3,061,677, 2.31% - 6.00%, 6/01/28 - 7/01/46) | | 3,002 | 3,000 |
| 7/20/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $3,061,293, 2.45% - 4.50%, 6/01/28 - 7/01/46) | | 3,002 | 3,000 |
| 8/3/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $5,101,509, 2.31% - 3.50%, 4/01/36 - 7/01/46) | | 5,003 | 5,000 |
| 0.36%, dated 8/30/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $2,040,050, 2.36% - 4.50%, 3/01/40 - 7/01/46) | | 2,001 | 2,000 |
| Wells Fargo Securities, LLC at: | | | |
| 0.34%, dated: | | | |
| 8/25/16 due 9/1/16 (Collateralized by U.S. Government Obligations valued at $3,060,202, 3.50% - 4.00%, 5/01/46 - 9/01/46) | | 3,000 | 3,000 |
| 8/30/16 due 9/6/16 (Collateralized by U.S. Government Obligations valued at $16,480,312, 0.90% - 3.00%, 8/25/27 - 5/15/40) | | 16,001 | 16,000 |
| 0.42%, dated: | | | |
| 7/7/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $11,337,402, 0.90%, 5/15/40) | | 11,008 | 11,000 |
| 7/11/16 due 9/9/16 (Collateralized by U.S. Government Obligations valued at $2,041,238, 4.00%, 6/01/46) | | 2,001 | 2,000 |
| TOTAL U.S. GOVERNMENT AGENCY REPURCHASE AGREEMENT | | | |
| (Cost $450,582) | | | 450,582 |
|
| U.S. Treasury Repurchase Agreement - 7.8% | | | |
| With: | | | |
| Barclays Capital, Inc. at: | | | |
| 0.34%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $6,120,120, 0.75% - 8.88%, 6/30/17 - 8/15/44) | | 6,000 | 6,000 |
| 0.35%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $4,080,100, 1.00% - 2.13%, 3/31/17 - 6/30/21) | | 4,000 | 4,000 |
| BNP Paribas, S.A. at: | | | |
| 0.36%, dated 8/15/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $8,161,753, 1.38% - 4.75%, 5/31/19 - 5/15/44) | | 8,007 | 8,000 |
| 0.37%, dated: | | | |
| 8/26/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $19,571,318, 3.63% - 3.75%, 8/15/43 - 11/15/43) | | 19,017 | 19,000 |
| 8/29/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $29,720,788, 1.38% - 3.75%, 8/31/23 - 11/15/43) | | 29,025 | 29,000 |
| Commerz Markets LLC at 0.5%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $45,900,166, 1.50%, 5/31/20) | | 45,001 | 45,000 |
| Deutsche Bank Securities, Inc. at: | | | |
| 0.34%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $4,080,112, 2.25%, 11/30/17) | | 4,000 | 4,000 |
| 0.35%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $6,120,117, 2.25%, 11/30/17) | | 6,000 | 6,000 |
| 0.37%, dated 8/17/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $7,141,195, 2.25%, 11/30/17) | | 7,001 | 7,000 |
| Nomura Securities International, Inc. at 0.38%, dated 8/29/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $46,070,024, 2.50%, 8/15/23) | | 45,004 | 45,000 |
| Royal Bank of Canada at: | | | |
| 0.33%, dated 8/25/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $5,135,786, 1.63% - 2.25%, 12/31/22 - 8/15/46) | | 5,000 | 5,000 |
| 0.34%, dated: | | | |
| 8/24/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $12,355,638, 2.00% - 2.25%, 9/30/20 - 8/15/46) | | 12,002 | 12,000 |
| 8/26/16 due 9/2/16 (Collateralized by U.S. Treasury Obligations valued at $11,245,701, 2.00% - 2.25%, 9/30/20 - 8/15/46) | | 11,001 | 11,000 |
| 8/29/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $10,263,003, 2.13%, 6/30/21) | | 10,001 | 10,000 |
| 8/30/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $9,257,603, 2.25%, 3/31/21) | | 9,001 | 9,000 |
| 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $6,118,936, 1.13%, 8/31/21) | | 6,000 | 6,000 |
| 0.35%, dated 8/31/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $6,153,852, 1.38% - 1.50%, 3/31/20 - 1/31/22) | | 6,000 | 6,000 |
| Wells Fargo Securities, LLC at 0.4%, dated: | | | |
| 7/5/16 due 9/2/16 (Collateralized by U.S. Treasury Obligations valued at $3,062,066, 0.50%, 1/31/17) | | 3,002 | 3,000 |
| 7/7/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $5,103,268, 0.63%, 6/30/17) | | 5,003 | 5,000 |
| TOTAL U.S. TREASURY REPURCHASE AGREEMENT | | | |
| (Cost $240,000) | | | 240,000 |
| TOTAL INVESTMENT PORTFOLIO - 101.0% | | | |
| (Cost $3,091,202) | | | 3,091,202 |
| NET OTHER ASSETS (LIABILITIES) - (1.0)% | | | (30,408) |
| NET ASSETS - 100% | | | $3,060,794 |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets.
Legend
(a) Yield represents either the annualized yield at the date of purchase, or the stated coupon rate, or, for floating and adjustable rate securities, the rate at period end.
(b) Security or a portion of the security was sold in a reverse repurchase transaction and pledged for the benefit of a counterparty as collateral to secure the future obligations of the Fund to repurchase the securities at an agreed-upon date and price within 7 days of period end. At period end, the value of securities pledged by the Fund for reverse repurchase transactions was $3,998,000 and the principal amount of obligations of the Fund with respect to reverse repurchase transactions was $4,000,000.
(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
(d) Security or a portion of the security purchased on a delayed delivery or when-issued basis.
Investment Valuation
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Other Information
# Additional information on each counterparty to the repurchase agreement is as follows:
| Repurchase Agreement / Counterparty | Value (Amounts in thousands) |
| $246,582,000 due 9/01/16 at 0.34% | |
| BNP Paribas, S.A. | $14,183 |
| BNY Mellon Capital Markets LLC | 4,190 |
| Bank of America NA | 18,038 |
| Bank of Nova Scotia | 1,524 |
| Citibank NA | 12,894 |
| Credit Agricole CIB New York Branch | 31,641 |
| Credit Suisse Securities (USA) LLC | 89,610 |
| ING Financial Markets LLC | 1,289 |
| J.P. Morgan Securities, Inc. | 7,736 |
| Mizuho Securities USA, Inc. | 9,670 |
| Societe Generale | 2,024 |
| Wells Fargo Bank, NA | 7,414 |
| Wells Fargo Securities LLC | 46,369 |
| | $246,582 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amount) | | August 31, 2016 |
| Assets | | |
Investment in securities, at value (including repurchase agreements of $690,582) — See accompanying schedule:
Unaffiliated issuers (cost $3,091,202) | | $3,091,202 |
| Cash | | 1 |
| Receivable for fund shares sold | | 5,823 |
| Interest receivable | | 1,670 |
| Receivable from investment adviser for expense reductions | | 1 |
| Total assets | | 3,098,697 |
| Liabilities | | |
| Payable for investments purchased | | |
| Regular delivery | $20,099 | |
| Delayed delivery | 4,000 | |
| Payable for fund shares redeemed | 8,726 | |
| Accrued management fee | 1,077 | |
| Payable for reverse repurchase agreement | 4,000 | |
| Other affiliated payables | 1 | |
| Total liabilities | | 37,903 |
| Net Assets | | $3,060,794 |
| Net Assets consist of: | | |
| Paid in capital | | $3,060,760 |
| Accumulated undistributed net realized gain (loss) on investments | | 34 |
| Net Assets, for 3,060,244 shares outstanding | | $3,060,794 |
| Net Asset Value, offering price and redemption price per share ($3,060,794 ÷ 3,060,244 shares) | | $1.00 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | | Year ended August 31, 2016 |
| Investment Income | | |
| Interest | | $11,038 |
| Expenses | | |
| Management fee | $13,425 | |
| Independent trustees' fees and expenses | 15 | |
| Miscellaneous | 1 | |
| Total expenses before reductions | 13,441 | |
| Expense reductions | (3,099) | 10,342 |
| Net investment income (loss) | | 696 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | | 52 |
| Total net realized gain (loss) | | 52 |
| Net increase in net assets resulting from operations | | $748 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended August 31, 2016 | Year ended August 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $696 | $330 |
| Net realized gain (loss) | 52 | 2 |
| Net increase in net assets resulting from operations | 748 | 332 |
| Distributions to shareholders from net investment income | (696) | (330) |
| Share transactions at net asset value of $1.00 per share | | |
| Proceeds from sales of shares | 3,487,252 | 3,463,093 |
| Reinvestment of distributions | 696 | 330 |
| Cost of shares redeemed | (3,637,008) | (3,599,112) |
| Net increase (decrease) in net assets and shares resulting from share transactions | (149,060) | (135,689) |
| Total increase (decrease) in net assets | (149,008) | (135,687) |
| Net Assets | | |
| Beginning of period | 3,209,802 | 3,345,489 |
| End of period | $3,060,794 | $3,209,802 |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Retirement Government Money Market Portfolio
| Years ended August 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)A | – | – | – | – | – |
| Net realized and unrealized gain (loss)A | – | – | – | – | – |
| Total from investment operationsA | – | – | – | – | – |
| Distributions from net investment incomeA | – | – | – | – | – |
| Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total ReturnB | .02% | .01% | .01% | .01% | .01% |
| Ratios to Average Net AssetsC | | | | | |
| Expenses before reductions | .42% | .42% | .42% | .42% | .42% |
| Expenses net of fee waivers, if any | .32% | .13% | .11% | .17% | .17% |
| Expenses net of all reductions | .32% | .13% | .11% | .17% | .17% |
| Net investment income (loss) | .02% | .01% | .01% | .01% | .01% |
| Supplemental Data | | | | | |
| Net assets, end of period (in millions) | $3,061 | $3,210 | $3,345 | $3,988 | $4,000 |
A Amount represents less than $.0005 per share.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended August 31, 2016
(Amounts in thousands except percentages)
1. Organization.
Retirement Government Money Market Portfolio (the Fund) is a fund of Fidelity Money Market Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 statutory trust.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
Investment Transactions and Income. The net asset value per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. During the period, the Fund incurred an excise tax liability on undistributed net investment income which is included as Miscellaneous expense on the Statement of Operations. As of August 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $– |
| Gross unrealized depreciation | – |
| Net unrealized appreciation (depreciation) on securities | $– |
| Tax Cost | $3,091,202 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $34 |
| Undistributed long-term capital gain | $1 |
The tax character of distributions paid was as follows:
| | August 31, 2016 | August 31, 2015 |
| Ordinary Income | $696 | $ 330 |
Repurchase Agreements. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the Fund along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR), or other affiliated entities of FMR, are permitted to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Reverse Repurchase Agreements. To enhance its yield, the Fund may enter into reverse repurchase transactions under master repurchase agreements whereby the Fund sells securities to a counterparty in return for cash and agrees to repurchase those securities at a future date and agreed upon price. During the period that reverse repurchase transactions are outstanding, the Fund identifies the securities as pledged in its records with an initial value at least equal to its principal obligation under the agreement. The cash proceeds received by the Fund may be invested in other securities. To the extent cash proceeds received from the counterparty exceed the value of the securities sold, the counterparty may request additional collateral from the Fund. If the counterparty defaults on its obligation, because of insolvency or other reasons, the Fund could experience delays and costs in recovering the securities sold. Information regarding securities sold under a reverse repurchase agreement is included at the end of the Fund's Schedule of Investments and the cash proceeds are recorded as a liability in the accompanying Statement of Assets and Liabilities. The Fund continues to receive interest and dividend payments on the securities sold during the term of the reverse repurchase agreement. During the period, the average principal balance of reverse repurchase transactions was $6,702 and the weighted average interest rate was .06% with payments included in the Statement of Operations as a component of interest expense in the amount of less than five hundred dollars.
Delayed Delivery Transactions and When-Issued Securities. During the period, the Fund transacted in securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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 securities purchased on a delayed delivery or when-issued 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 or when-issued security. With respect to purchase commitments, the Fund identifies securities as segregated in its records with a value at least equal to the amount of the commitment. Losses may arise due to changes in the value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.
3. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .42% of the Fund's average net assets. Under the management contract, the investment adviser pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act.
4. Expense Reductions.
The investment adviser or its affiliates voluntarily agreed to waive certain fees in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by the investment adviser at any time. For the period, the amount of the waiver was $3,091.
Through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's management fee. During the period, these credits reduced the Fund's management fee by $7.
In addition, during the period the investment adviser reimbursed and/or waived a portion of operating expenses in the amount of $1.
5. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Money Market Trust and Shareholders of Retirement Government Money Market Portfolio:
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Retirement Government Money Market Portfolio (a fund of Fidelity Money Market Trust) at August 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Retirement Government Money Market Portfolio’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 18, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jennifer Toolin McAuliffe and Mark A. Murray, each of the Trustees oversees 244 funds. Ms. McAuliffe and Mr. Murray each oversees 191 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Marie L. Knowles serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, asset allocation and certain equity funds, and other Boards oversee Fidelity's high income, sector and other equity funds. The asset allocation funds may invest in Fidelity® funds that are overseen by such other Boards. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Abigail P. Johnson (1961)
Year of Election or Appointment: 2009
Trustee
Chairman of the Board of Trustees
Ms. Johnson also serves as Trustee of other Fidelity® funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC (diversified financial services company), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (investment adviser firm, 2011-present), Chairman and Director of FMR (investment adviser firm, 2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc. (investment adviser firm), and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity® funds (2001-2005), and managed a number of Fidelity® funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.
Jennifer Toolin McAuliffe (1959)
Year of Election or Appointment: 2016
Trustee
Ms. McAuliffe also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Ms. McAuliffe previously served as Co-Head of Fixed Income of Fidelity Investments Limited (now known as FIL Limited (FIL)) (diversified financial services company). Earlier roles at FIL included Director of Research for FIL’s credit and quantitative teams in London, Hong Kong and Tokyo. Ms. McAuliffe also was the Director of Research for taxable and municipal bonds at Fidelity Investments Money Management, Inc. Ms. McAuliffe is also a director or trustee of several not-for-profit entities.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Elizabeth S. Acton (1951)
Year of Election or Appointment: 2015
Trustee
Ms. Acton also serves as Trustee of other Fidelity® funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). Previously, Ms. Acton served as a Member of the Advisory Board of certain Fidelity® funds (2013-2016).
John Engler (1948)
Year of Election or Appointment: 2015
Trustee
Mr. Engler also serves as Trustee of other Fidelity® funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present) and K12 Inc. (technology-based education company, 2012-present). Previously, Mr. Engler served as a Member of the Advisory Board of certain Fidelity® funds (2014-2016), a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011), member of the Board of Trustees of the Annie E. Casey Foundation (2004-2015), and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association.
Albert R. Gamper, Jr. (1942)
Year of Election or Appointment: 2006
Trustee
Mr. Gamper also serves as Trustee of other Fidelity® funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Chairman (2012-2015) and Vice Chairman (2011-2012) of the Independent Trustees of certain Fidelity® funds and as Chairman of the Board of Governors, Rutgers University (2004-2007).
Robert F. Gartland (1951)
Year of Election or Appointment: 2010
Trustee
Mr. Gartland also serves as Trustee of other Fidelity® funds. Mr. Gartland is Chairman and an investor in Gartland & Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007).
Arthur E. Johnson (1947)
Year of Election or Appointment: 2008
Trustee
Vice Chairman of the Independent Trustees
Mr. Johnson also serves as Trustee of other Fidelity® funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson.
Michael E. Kenneally (1954)
Year of Election or Appointment: 2009
Trustee
Mr. Kenneally also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991.
James H. Keyes (1940)
Year of Election or Appointment: 2007
Trustee
Mr. Keyes also serves as Trustee of other Fidelity® funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008).
Marie L. Knowles (1946)
Year of Election or Appointment: 2001
Trustee
Chairman of the Independent Trustees
Ms. Knowles also serves as Trustee of other Fidelity® funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company (pipeline and tanker operations). Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Santa Catalina Island Company (real estate, 2009-present). Ms. Knowles is a Member of the Investment Company Institute Board of Governors and a Member of the Governing Council of the Independent Directors Council (2014-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). Ms. Knowles previously served as Vice Chairman of the Independent Trustees of certain Fidelity® funds (2012-2015).
Mark A. Murray (1954)
Year of Election or Appointment: 2016
Trustee
Mr. Murray also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Murray is Vice Chairman (2013-present) of Meijer, Inc. (regional retail chain). Previously, Mr. Murray served as Co-Chief Executive Officer (2013-2016) and President (2006-2013) of Meijer, Inc. Mr. Murray serves as a member of the Board of Directors and Nuclear Review and Public Policy and Responsibility Committees of DTE Energy Company (diversified energy company, 2009-present). Mr. Murray also serves as a member of the Board of Directors of Spectrum Health (not-for-profit health system, 2015-present). Mr. Murray previously served as President of Grand Valley State University (2001-2006), Treasurer for the State of Michigan (1999-2001), Vice President of Finance and Administration for Michigan State University (1998-1999), and a member of the Board of Directors and Audit Committee and Chairman of the Nominating and Corporate Governance Committee of Universal Forest Products, Inc. (manufacturer and distributor of wood and wood-alternative products, 2004-2016). Mr. Murray is also a director or trustee of many community and professional organizations.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (U.K.) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2013
President and Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Mr. Goebel serves as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present). Previously, Mr. Goebel served as Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present).
Timothy Huyck (1964)
Year of Election or Appointment: 2015
Vice President of Fidelity's Money Market Funds
Mr. Huyck also serves as Vice President of other funds. Mr. Huyck serves as Chief Investment Officer of Fidelity's Money Market Funds (2015-present) and is an employee of Fidelity Investments (1990-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John B. McGinty, Jr. (1962)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. McGinty also serves as Chief Compliance Officer of other funds. Mr. McGinty is Senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2016-present). Mr. McGinty previously served as Vice President, Senior Attorney at Eaton Vance Management (investment management firm, 2015-2016), and prior to Eaton Vance as global CCO for all firm operations and registered investment companies at GMO LLC (investment management firm, 2009-2015). Before joining GMO LLC, Mr. McGinty served as Senior Vice President, Deputy General Counsel for Fidelity Investments (2007-2009).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2015
Assistant Secretary
Mr. Pogorelec also serves as Assistant Secretary of other funds. Mr. Pogorelec serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2006-present).
Nancy D. Prior (1967)
Year of Election or Appointment: 2014
Vice President
Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present), President (2016-present) and Director (2014-present) of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm), President, Fixed Income (2014-present), Vice Chairman of FIAM LLC (investment adviser firm, 2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond Group of Fidelity Management & Research (FMR) (investment adviser firm, 2013-2014), President, Money Market Group of FMR (2011-2013), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of certain Fidelity® funds (2008-2009).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2016 to August 31, 2016).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
March 1, 2016 | Ending
Account Value
August 31, 2016 | Expenses Paid
During Period-B
March 1, 2016
to August 31, 2016 |
| Actual | .42% | $1,000.00 | $1,000.20 | $2.11 |
| Hypothetical-C | | $1,000.00 | $1,023.03 | $2.14 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
The fund hereby designates as a capital gain dividend with respect to the taxable year ended August 31, 2016, $1,273, or, if subsequently determined to be different, the net capital gain of such year.
A total of 74.08% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $583,972 of distributions paid during the period January 1, 2016 to August 31, 2016 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
RGM-ANN-1016
1.768777.114
Fidelity Money Market Trust Retirement Government Money Market II Portfolio (formerly Retirement Money Market)
Annual Report August 31, 2016 |
|
Contents
To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov.
You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.
Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.
Other third-party marks appearing herein are the property of their respective owners.
All other marks appearing herein are registered or unregistered trademarks or service marks of FMR LLC or an affiliated company. © 2016 FMR LLC. All rights reserved.
The fund seeks to obtain as high a level of current income as is consistent with the preservation of capital and liquidity by investing in high-quality, short-term money market securities issued or guaranteed as to principal and interest by the U.S. Government, or by any of its agencies or instrumentalities.
An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.
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.
A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC’s web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330.
For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com, http://www.institutional.fidelity.com, or http://www.401k.com, as applicable.
NOT FDIC INSURED •MAY LOSE VALUE •NO BANK GUARANTEE
Neither the Fund nor Fidelity Distributors Corporation is a bank.
Investment Summary/Performance (Unaudited)
Effective Maturity Diversification
| Days | % of fund's investments 8/31/16 | % of fund's investments 2/29/16 | % of fund's investments 8/31/15 |
| 1 - 7 | 22.5 | 21.4 | 27.5 |
| 8 - 30 | 16.0 | 29.9 | 24.0 |
| 31 - 60 | 26.7 | 22.6 | 19.1 |
| 61 - 90 | 26.4 | 13.6 | 10.1 |
| 91 - 180 | 7.3 | 11.0 | 13.7 |
| > 180 | 1.1 | 1.5 | 5.6 |
Effective maturity is determined in accordance with the requirements of Rule 2a-7 under the Investment Company Act of 1940.
Asset Allocation (% of fund's net assets)
| As of August 31, 2016 |
| | U.S. Treasury Debt | 15.4% |
| | U.S. Government Agency Debt | 68.0% |
| | Repurchase Agreements | 17.0% |
| | Net Other Assets (Liabilities)* | (0.4)% |
* Net Other Assets (Liabilities) are not included in the pie chart
| As of February 29, 2016 |
| | U.S. Treasury Debt | 8.0% |
| | U.S. Government Agency Debt | 75.3% |
| | Repurchase Agreements | 17.9% |
| | Net Other Assets (Liabilities)* | (1.2)% |
* Net Other Assets (Liabilities) are not included in the pie chart
Current And Historical 7-Day Yields
| | 8/31/16 | 5/31/16 | 2/29/16 | 11/30/15 | 8/31/15 |
| Retirement Government Money Market II Portfolio | 0.05% | 0.03% | 0.01% | 0.01% | 0.01% |
Yield refers to the income paid by the Fund over a given period. Yields for money market funds are usually for seven-day periods, as they are here, though they are expressed as annual percentage rates. Past performance is no guarantee of future results. Yield will vary and it's possible to lose money investing in the Fund.
Investments August 31, 2016
Showing Percentage of Net Assets
| U.S. Treasury Debt - 15.4% | | | | |
| | | Yield(a) | Principal Amount (000s) | Value (000s) |
| U.S. Treasury Obligations - 15.4% | | | | |
| U.S. Treasury Bills | | | | |
| 9/8/16 to 2/9/17 | | 0.29 to 0.48 (b)% | $1,094,000 | $1,093,197 |
| U.S. Treasury Notes | | | | |
| 10/31/16 to 1/31/17 | | 0.33 to 0.45 | 580,000 | 582,726 |
| TOTAL U.S. TREASURY DEBT | | | | |
| (Cost $1,675,923) | | | | 1,675,923 |
|
| U.S. Government Agency Debt - 68.0% | | | | |
| Federal Agencies - 68.0% | | | | |
| Fannie Mae | | | | |
| 1/11/18 | | 0.63 (c) | 114,000 | 114,000 |
| Federal Home Loan Bank | | | | |
| 9/1/16 to 2/26/18 | | 0.32 to 0.74 (c) | 6,691,890 | 6,690,051 |
| Freddie Mac | | | | |
| 9/16/16 to 1/12/18 | | 0.44 to 0.75 (c) | 579,000 | 578,893 |
| TOTAL U.S. GOVERNMENT AGENCY DEBT | | | | |
| (Cost $7,382,944) | | | | 7,382,944 |
| U.S. Government Agency Repurchase Agreement - 8.9% | | | |
| | | Maturity Amount (000s) | Value (000s) |
| In a joint trading account at 0.34% dated 8/31/16 due 9/1/16 (Collateralized by U.S. Government Obligations) # | | $228,442 | $228,440 |
| With: | | | |
| BNP Paribas, S.A. at 0.35%, dated 7/8/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $10,260,958, 0.00% - 7.25%, 7/28/17 - 10/20/65) | | 10,006 | 10,000 |
| Citibank NA at: | | | |
| 0.33%, dated 8/30/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $9,183,502, 0.13% - 7.50%, 11/15/16 - 1/15/25) | | 9,001 | 9,000 |
| 0.34%, dated 8/30/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $57,319,725, 0.13% - 8.60%, 11/15/16 - 3/01/45) | | 56,004 | 56,000 |
| Deutsche Bank Securities, Inc. at: | | | |
| 0.35%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $5,100,063, 2.25%, 11/30/17) | | 5,000 | 5,000 |
| 0.37%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $16,320,253, 1.38%, 10/31/20) | | 16,000 | 16,000 |
| ING Financial Markets LLC at: | | | |
| 0.38%, dated 8/3/16 due 10/3/16 (Collateralized by U.S. Government Obligations valued at $6,122,134, 3.50% - 4.00%, 8/01/26 - 12/01/42) | | 6,004 | 6,000 |
| 0.4%, dated 8/26/16 due 11/1/16 (Collateralized by U.S. Government Obligations valued at $9,181,788, 3.50%, 12/01/42) | | 9,007 | 9,000 |
| 0.41%, dated: | | | |
| 8/23/16 due 10/5/16: | | | |
| (Collateralized by U.S. Government Obligations valued at $19,383,494, 3.50%, 8/01/42) | | 19,019 | 19,000 |
| (Collateralized by U.S. Government Obligations valued at $15,302,423, 3.50%, 8/01/42) | | 15,015 | 15,000 |
| 8/24/16 due 10/5/16: | | | |
| (Collateralized by U.S. Government Obligations valued at $23,462,054, 4.00%, 8/01/26 - 11/01/31) | | 23,024 | 23,000 |
| (Collateralized by U.S. Government Obligations valued at $21,423,964, 4.00%, 11/01/31) | | 21,022 | 21,000 |
| 8/30/16 due 10/5/16 (Collateralized by U.S. Government Obligations valued at $19,382,384, 3.50% - 4.00%, 11/01/31- 8/01/42) | | 19,019 | 19,000 |
| 0.42%, dated: | | | |
| 7/6/16 due 9/1/16: | | | |
| (Collateralized by U.S. Government Obligations valued at $13,271,438, 3.50%, 8/01/42) | | 13,014 | 13,000 |
| (Collateralized by U.S. Government Obligations valued at $13,271,438, 3.50%, 8/01/42) | | 13,014 | 13,000 |
| 7/12/16 due 10/5/16 (Collateralized by U.S. Government Obligations valued at $21,434,149, 4.00%, 11/01/31) | | 21,022 | 21,000 |
| Merrill Lynch, Pierce, Fenner Smith at 0.36%, dated 8/17/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $58,148,721, 3.50%, 1/20/43 - 7/20/46) | | 57,035 | 57,000 |
| Mitsubishi UFJ Securities (U.S.A.), Inc. at: | | | |
| 0.39%, dated: | | | |
| 8/3/16 due 9/1/16 (Collateralized by U.S. Government Obligations valued at $16,325,127, 1.67% - 6.06%, 11/01/23 - 7/20/46) | | 16,005 | 16,000 |
| 8/4/16 due 10/7/16 (Collateralized by U.S. Government Obligations valued at $12,243,713, 3.00% - 4.00%, 11/01/26 - 6/01/46) | | 12,008 | 12,000 |
| 8/8/16 due 10/11/16 (Collateralized by U.S. Government Obligations valued at $16,324,243, 2.55% - 5.34%, 1/01/19 - 6/01/46) | | 16,011 | 16,000 |
| 8/9/16 due 10/12/16 (Collateralized by U.S. Government Obligations valued at $33,668,387, 2.27% - 5.70%, 11/01/23 - 8/01/46) | | 33,023 | 33,000 |
| 8/17/16 due 10/17/16 (Collateralized by U.S. Government Obligations valued at $10,201,658, 3.00% - 4.50%, 9/20/41 - 7/01/46) | | 10,007 | 10,000 |
| 8/24/16 due: | | | |
| 10/26/16 (Collateralized by U.S. Government Obligations valued at $15,301,326, 2.25% - 5.32%, 1/01/19 - 8/01/46) | | 15,010 | 15,000 |
| 10/28/2016 (Collateralized by U.S. Government Obligations valued at $21,421,856, 2.13% - 4.50%, 10/01/26 - 8/01/46) | | 21,015 | 21,000 |
| 0.44%, dated 7/25/16 due 10/24/16 (Collateralized by U.S. Government Obligations valued at $10,204,738, 2.13% - 4.50%, 9/01/26 - 8/01/46) | | 10,011 | 10,000 |
| Mizuho Securities U.S.A., Inc. at 0.5%, dated 8/8/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $20,606,867, 3.00%, 1/25/43) | | 20,025 | 20,000 |
| RBC Capital Markets Corp. at: | | | |
| 0.34%, dated 7/5/16 due 9/6/16 (Collateralized by U.S. Government Obligations valued at $20,494,225, 0.76% - 5.50%, 4/01/27 - 7/01/46) | | 20,012 | 20,000 |
| 0.35%, dated: | | | |
| 7/1/16 due 9/1/16 (Collateralized by U.S. Government Obligations valued at $14,288,781, 2.36% - 5.50%, 9/01/33 - 7/01/46) | | 14,008 | 14,000 |
| 7/11/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $27,554,023, 2.00% - 5.50%, 3/01/31 - 7/01/46) | | 27,017 | 27,000 |
| 7/15/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $20,409,521, 2.39% - 6.00%, 6/01/28 - 7/01/46) | | 20,012 | 20,000 |
| 7/18/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $31,634,115, 2.12% - 6.00%, 4/01/27 - 7/01/46) | | 31,018 | 31,000 |
| 7/19/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $10,204,479, 2.35% - 5.50%, 9/01/33 - 6/01/46) | | 10,006 | 10,000 |
| 7/20/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $11,224,832, 0.76% - 6.00%, 6/01/28 - 7/01/46) | | 11,007 | 11,000 |
| 8/3/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $19,385,570, 2.35% - 4.50%, 3/01/27 - 7/01/46) | | 19,011 | 19,000 |
| 0.36%, dated 8/30/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $7,145,172, 0.76% - 4.50%, 3/01/40 - 7/01/46) | | 7,004 | 7,000 |
| Wells Fargo Securities, LLC at: | | | |
| 0.34%, dated: | | | |
| 8/25/16 due 9/1/16 (Collateralized by U.S. Government Obligations valued at $9,180,607, 3.50%, 6/01/46) | | 9,001 | 9,000 |
| 8/30/16 due 9/6/16 (Collateralized by U.S. Government Obligations valued at $57,121,080, 3.50%, 6/01/46) | | 56,004 | 56,000 |
| 0.42%, dated: | | | |
| 7/7/16 due 9/7/16 (Collateralized by U.S. Government Obligations valued at $41,847,323, 4.00%, 5/01/46 - 7/01/46) | | 41,030 | 41,000 |
| 7/11/16 due 9/9/16 (Collateralized by U.S. Government Obligations valued at $8,164,951, 4.00%, 8/01/46) | | 8,006 | 8,000 |
| TOTAL U.S. GOVERNMENT AGENCY REPURCHASE AGREEMENT | | | |
| (Cost $966,440) | | | 966,440 |
|
| U.S. Treasury Repurchase Agreement - 8.1% | | | |
| With: | | | |
| Barclays Capital, Inc. at: | | | |
| 0.34%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $23,460,316, 0.75% - 9.13%, 6/30/17 - 5/15/21) | | 23,000 | 23,000 |
| 0.35%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $33,660,414, 1.75% - 6.50%, 7/31/17 - 11/15/26) | | 33,000 | 33,000 |
| BNP Paribas, S.A. at: | | | |
| 0.36%, dated 8/15/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $29,697,543, 1.00% - 4.75%, 9/30/19 - 2/15/46) | | 29,026 | 29,000 |
| 0.37%, dated: | | | |
| 8/26/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $69,752,954, 1.25% - 4.25%, 12/15/18 - 8/15/45) | | 68,061 | 68,000 |
| 8/29/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $103,858,299, 1.38% - 3.75%, 9/30/20 - 5/15/45) | | 101,088 | 101,000 |
| Commerz Markets LLC at 0.5%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $165,240,351, 2.50%, 5/15/24) | | 162,002 | 162,000 |
| Deutsche Bank Securities, Inc. at: | | | |
| 0.34%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $14,280,196, 1.38%, 10/31/20) | | 14,000 | 14,000 |
| 0.35%, dated 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $23,460,250, 1.38%, 10/31/20) | | 23,000 | 23,000 |
| 0.37%, dated 8/17/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $24,483,830, 1.38%, 10/31/20) | | 24,004 | 24,000 |
| Nomura Securities International, Inc. at 0.38%, dated 8/29/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $166,921,357, 2.25%, 11/15/25) | | 162,014 | 162,000 |
| Royal Bank of Canada at: | | | |
| 0.33%, dated 8/25/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $18,481,664, 2.13% - 2.25%, 12/31/22 - 8/15/46) | | 18,001 | 18,000 |
| 0.34%, dated: | | | |
| 8/24/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $42,087,401, 2.00% - 2.25%, 9/30/20 - 8/15/46) | | 41,005 | 41,000 |
| 8/26/16 due 9/2/16 (Collateralized by U.S. Treasury Obligations valued at $38,756,261, 2.00% - 2.25%, 9/30/20 - 8/15/46) | | 38,003 | 38,000 |
| 8/29/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $37,820,169, 2.00% - 2.13%, 2/28/21 - 6/30/21) | | 37,003 | 37,000 |
| 8/30/16 due 9/6/16 (Collateralized by U.S. Treasury Obligations valued at $32,915,210, 2.25%, 3/31/21) | | 32,002 | 32,000 |
| 8/31/16 due 9/1/16 (Collateralized by U.S. Treasury Obligations valued at $20,396,120, 1.13%, 8/31/21) | | 20,000 | 20,000 |
| 0.35%, dated 8/31/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $20,514,737, 1.38%, 3/31/20) | | 20,001 | 20,000 |
| Wells Fargo Securities, LLC at 0.4%, dated: | | | |
| 7/5/16 due 9/2/16 (Collateralized by U.S. Treasury Obligations valued at $12,247,965, 0.50%, 1/31/17) | | 12,008 | 12,000 |
| 7/7/16 due 9/7/16 (Collateralized by U.S. Treasury Obligations valued at $17,350,851, 0.63%, 6/30/17) | | 17,012 | 17,000 |
| TOTAL U.S. TREASURY REPURCHASE AGREEMENT | | | |
| (Cost $874,000) | | | 874,000 |
| TOTAL INVESTMENT PORTFOLIO - 100.4% | | | |
| (Cost $10,899,307) | | | 10,899,307 |
| NET OTHER ASSETS (LIABILITIES) - (0.4)% | | | (47,987) |
| NET ASSETS - 100% | | | $10,851,320 |
The date shown for securities represents the date when principal payments must be paid, taking into account any call options exercised by the issuer and any permissible maturity shortening features other than interest rate resets.
Legend
(a) Yield represents either the annualized yield at the date of purchase, or the stated coupon rate, or, for floating and adjustable rate securities, the rate at period end.
(b) Security or a portion of the security was sold in a reverse repurchase transaction and pledged for the benefit of a counterparty as collateral to secure the future obligations of the Fund to repurchase the securities at an agreed-upon date and price within 7 days of period end. At period end, the value of securities pledged by the Fund for reverse repurchase transactions was $32,986,000 and the principal amount of obligations of the Fund with respect to reverse repurchase transactions was $33,000,000.
(c) Coupon rates for floating and adjustable rate securities reflect the rates in effect at period end.
Investment Valuation
All investments are categorized as Level 2 under the Fair Value Hierarchy. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs please refer to the Investment Valuation section in the accompanying Notes to Financial Statements.
Other Information
# Additional information on each counterparty to the repurchase agreement is as follows:
| Repurchase Agreement / Counterparty | Value |
| $228,440,000 due 9/01/16 at 0.34% | (Amounts in
thousands) |
| BNP Paribas, S.A. | $13,139 |
| BNY Mellon Capital Markets LLC | 3,882 |
| Bank of America NA | 16,711 |
| Bank of Nova Scotia | 1,412 |
| Citibank NA | 11,945 |
| Credit Agricole CIB New York Branch | 29,313 |
| Credit Suisse Securities (USA) LLC | 83,017 |
| ING Financial Markets LLC | 1,194 |
| J.P. Morgan Securities, Inc. | 7,167 |
| Mizuho Securities USA, Inc. | 8,959 |
| Societe Generale | 1,875 |
| Wells Fargo Bank, NA | 6,868 |
| Wells Fargo Securities LLC | 42,958 |
| | $228,440 |
See accompanying notes which are an integral part of the financial statements.
Financial Statements
Statement of Assets and Liabilities
| Amounts in thousands (except per-share amount) | | August 31, 2016 |
| Assets | | |
Investment in securities, at value (including repurchase agreements of $1,840,440) — See accompanying schedule:
Unaffiliated issuers (cost $10,899,307) | | $10,899,307 |
| Receivable for fund shares sold | | 37,233 |
| Interest receivable | | 8,112 |
| Other receivables | | 329 |
| Total assets | | 10,944,981 |
| Liabilities | | |
| Payable for investments purchased | $33,362 | |
| Payable for fund shares redeemed | 23,131 | |
| Accrued management fee | 3,836 | |
| Payable for reverse repurchase agreement | 33,000 | |
| Other affiliated payables | 2 | |
| Other payables and accrued expenses | 330 | |
| Total liabilities | | 93,661 |
| Net Assets | | $10,851,320 |
| Net Assets consist of: | | |
| Paid in capital | | $10,851,614 |
| Distributions in excess of net investment income | | (294) |
| Net Assets, for 10,849,851 shares outstanding | | $10,851,320 |
| Net Asset Value, offering price and redemption price per share ($10,851,320 ÷ 10,849,851 shares) | | $1.00 |
See accompanying notes which are an integral part of the financial statements.
Statement of Operations
| Amounts in thousands | | Year ended August 31, 2016 |
| Investment Income | | |
| Interest | | $41,423 |
| Expenses | | |
| Management fee | $47,450 | |
| Independent trustees' fees and expenses | 51 | |
| Interest | 3 | |
| Total expenses before reductions | 47,504 | |
| Expense reductions | (8,302) | 39,202 |
| Net investment income (loss) | | 2,221 |
| Realized and Unrealized Gain (Loss) | | |
| Net realized gain (loss) on: | | |
| Investment securities: | | |
| Unaffiliated issuers | | 108 |
| Total net realized gain (loss) | | 108 |
| Net increase in net assets resulting from operations | | $2,329 |
See accompanying notes which are an integral part of the financial statements.
Statement of Changes in Net Assets
| Amounts in thousands | Year ended August 31, 2016 | Year ended August 31, 2015 |
| Increase (Decrease) in Net Assets | | |
| Operations | | |
| Net investment income (loss) | $2,221 | $1,213 |
| Net realized gain (loss) | 108 | 128 |
| Net increase in net assets resulting from operations | 2,329 | 1,341 |
| Distributions to shareholders from net investment income | (2,221) | (1,217) |
| Distributions to shareholders from net realized gain | (580) | – |
| Total distributions | (2,801) | (1,217) |
| Share transactions at net asset value of $1.00 per share | | |
| Proceeds from sales of shares | 10,968,452 | 10,311,962 |
| Reinvestment of distributions | 2,799 | 1,216 |
| Cost of shares redeemed | (12,054,496) | (11,090,647) |
| Net increase (decrease) in net assets and shares resulting from share transactions | (1,083,245) | (777,469) |
| Total increase (decrease) in net assets | (1,083,717) | (777,345) |
| Net Assets | | |
| Beginning of period | 11,935,037 | 12,712,382 |
| End of period | $10,851,320 | $11,935,037 |
| Other Information | | |
| Undistributed net investment income end of period | $– | $178 |
| Distributions in excess of net investment income end of period | $(294) | $– |
See accompanying notes which are an integral part of the financial statements.
Financial Highlights — Retirement Government Money Market II Portfolio
| Years ended August 31, | 2016 | 2015 | 2014 | 2013 | 2012 |
| Selected Per–Share Data | | | | | |
| Net asset value, beginning of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Income from Investment Operations | | | | | |
| Net investment income (loss)A | – | – | – | – | – |
| Net realized and unrealized gain (loss)A | – | – | – | – | – |
| Total from investment operationsA | – | – | – | – | – |
| Distributions from net investment incomeA | – | – | – | – | – |
| Distributions from net realized gain | –A | – | – | – | – |
| Total distributionsA | – | – | – | – | – |
| Net asset value, end of period | $1.00 | $1.00 | $1.00 | $1.00 | $1.00 |
| Total ReturnB | .02% | .01% | .01% | .01% | .01% |
| Ratios to Average Net AssetsC | | | | | |
| Expenses before reductions | .42% | .42% | .42% | .42% | .42% |
| Expenses net of fee waivers, if any | .35% | .27% | .24% | .31% | .38% |
| Expenses net of all reductions | .35% | .27% | .24% | .31% | .38% |
| Net investment income (loss) | .02% | .01% | .01% | .01% | .01% |
| Supplemental Data | | | | | |
| Net assets, end of period (in millions) | $10,851 | $11,935 | $12,712 | $14,006 | $14,660 |
A Amount represents less than $.0005 per share.
B Total returns would have been lower if certain expenses had not been reduced during the applicable periods shown.
C Expense ratios reflect operating expenses of the Fund. Expenses before reductions do not reflect amounts reimbursed or waived or reductions from expense offset arrangements and do not represent the amount paid by the Fund during periods when reimbursements, waivers or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement and waivers but prior to reductions from expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the Fund.
See accompanying notes which are an integral part of the financial statements.
Notes to Financial Statements
For the period ended August 31, 2016
(Amounts in thousands except percentages)
1. Organization.
Retirement Government Money Market II Portfolio (formerly Retirement Money Market) (the Fund) is a fund of Fidelity Money Market Trust (the Trust) and is authorized to issue an unlimited number of shares. Share transactions on the Statement of Changes in Net Assets may contain exchanges between affiliated funds. 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 statutory trust.
2. Significant Accounting Policies.
The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (GAAP), which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Subsequent events, if any, through the date that the financial statements were issued have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:
Investment Valuation. The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below:
- Level 1 – quoted prices in active markets for identical investments
- Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)
- Level 3 – unobservable inputs (including the Fund's own assumptions based on the best information available)
As permitted by compliance with certain conditions under Rule 2a-7 of the 1940 Act, securities are valued at amortized cost, which approximates fair value. The amortized cost of an instrument is determined by valuing it at its original cost and thereafter amortizing any discount or premium from its face value at a constant rate until maturity. Securities held by a money market fund are generally high quality and liquid; however, they are reflected as Level 2 because the inputs used to determine fair value are not quoted prices in an active market.
Investment Transactions and Income. The net asset value per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. Interest income is accrued as earned and includes coupon interest and amortization of premium and accretion of discount on debt securities as applicable.
Expenses. Expenses directly attributable to a fund are charged to that fund. Expenses attributable to more than one fund are allocated among the respective funds on the basis of relative net assets or other appropriate methods. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.
Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent Trustees may elect to defer receipt of a portion of their annual compensation. Deferred amounts are invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.
Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code, including distributing substantially all of its taxable income and realized gains. As a result, no provision for U.S. Federal income taxes is required. As of August 31, 2016, the Fund did not have any unrecognized tax benefits in the financial statements; nor is the Fund aware of any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly change in the next twelve months. The Fund files a U.S. federal tax return, in addition to state and local tax returns as required. The Fund's federal income tax returns are subject to examination by the Internal Revenue Service (IRS) for a period of three fiscal years after they are filed. State and local tax returns may be subject to examination for an additional fiscal year depending on the jurisdiction.
Dividends are declared and recorded daily and paid monthly from net investment income. Distributions from realized gains, if any, are declared and recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from GAAP.
Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Capital accounts are not adjusted for temporary book-tax differences which will reverse in a subsequent period.
Book-tax differences are primarily due to deferred trustees compensation.
The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:
| Gross unrealized appreciation | $– |
| Gross unrealized depreciation | – |
| Net unrealized appreciation (depreciation) on securities | $– |
| Tax Cost | $10,899,307 |
The tax-based components of distributable earnings as of period end were as follows:
| Undistributed ordinary income | $37 |
The tax character of distributions paid was as follows:
| | August 31, 2016 | August 31, 2015 |
| Ordinary Income | $2,801 | $ 1,217 |
Repurchase Agreements. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the Fund along with other registered investment companies having management contracts with Fidelity Management & Research Company (FMR), or other affiliated entities of FMR, are permitted to transfer uninvested cash balances into joint trading accounts which are then invested in repurchase agreements. The Fund may also invest directly with institutions in repurchase agreements. Repurchase agreements may be collateralized by government or non-government securities. Upon settlement date, collateral is held in segregated accounts with custodian banks and may be obtained in the event of a default of the counterparty. The Fund monitors, on a daily basis, the value of the collateral to ensure it is at least equal to the principal amount of the repurchase agreement (including accrued interest). In the event of a default by the counterparty, realization of the collateral proceeds could be delayed, during which time the value of the collateral may decline.
Reverse Repurchase Agreements. To enhance its yield, the Fund may enter into reverse repurchase transactions under master repurchase agreements whereby the Fund sells securities to a counterparty in return for cash and agrees to repurchase those securities at a future date and agreed upon price. During the period that reverse repurchase transactions are outstanding, the Fund identifies the securities as pledged in its records with an initial value at least equal to its principal obligation under the agreement. The cash proceeds received by the Fund may be invested in other securities. To the extent cash proceeds received from the counterparty exceed the value of the securities sold, the counterparty may request additional collateral from the Fund. If the counterparty defaults on its obligation, because of insolvency or other reasons, the Fund could experience delays and costs in recovering the securities sold. Information regarding securities sold under a reverse repurchase agreement is included at the end of the Fund's Schedule of Investments and the cash proceeds are recorded as a liability in the accompanying Statement of Assets and Liabilities. The Fund continues to receive interest and dividend payments on the securities sold during the term of the reverse repurchase agreement. During the period, the average principal balance of reverse repurchase transactions was $50,111 and the weighted average interest rate was .06% with payments included in the Statement of Operations as a component of interest expense.
3. Fees and Other Transactions with Affiliates.
Management Fee. Fidelity Management & Research Company (the investment adviser) and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee that is based on an annual rate of .42% of the Fund's average net assets. Under the management contract, the investment adviser pays all other expenses, except the compensation of the independent Trustees and certain other expenses such as interest expense. The management fee is reduced by an amount equal to the fees and expenses paid by the Fund to the independent Trustees.
Interfund Trades. The Fund may purchase from or sell securities to other Fidelity Funds under procedures adopted by the Board. The procedures have been designed to ensure these interfund trades are executed in accordance with Rule 17a-7 of the 1940 Act.
4. Expense Reductions.
The investment adviser or its affiliates voluntarily agreed to waive certain fees in order to maintain a minimum annualized yield of .01%. Such arrangements may be discontinued by the investment adviser at any time. For the period, the amount of the waiver was $8,302.
In addition, through arrangements with the Fund's custodian, credits realized as a result of certain uninvested cash balances were used to reduce the Fund's management fee. During the period, these credits reduced the Fund's management fee by one hundred twenty eight dollars.
5. Other.
The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.
Report of Independent Registered Public Accounting Firm
To the Trustees of Fidelity Money Market Trust and Shareholders of Retirement Government Money Market II Portfolio (formerly Retirement Money Market):
In our opinion, the accompanying statement of assets and liabilities, including the schedule of investments, and the related statements of operations and of changes in net assets and the financial highlights present fairly, in all material respects, the financial position of Retirement Government Money Market II Portfolio (a fund of Fidelity Money Market Trust) at August 31, 2016, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as “financial statements”) are the responsibility of the Retirement Government Money Market II Portfolio’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these financial statements in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits, which included confirmation of securities at August 31, 2016 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.
PricewaterhouseCoopers LLP
Boston, Massachusetts
October 18, 2016
Trustees and Officers
The Trustees, Members of the Advisory Board (if any), and officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, oversee management of the risks associated with such activities and contractual arrangements, and review the fund's performance. Except for Jennifer Toolin McAuliffe and Mark A. Murray, each of the Trustees oversees 244 funds. Ms. McAuliffe and Mr. Murray each oversees 191 funds.
The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) of the trust and the fund is referred to herein as an Independent Trustee. Each Independent Trustee shall retire not later than the last day of the calendar year in which his or her 75th birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. Officers and Advisory Board Members hold office without limit in time, except that any officer or Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.
The fund’s Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.
Experience, Skills, Attributes, and Qualifications of the Trustees. The Governance and Nominating Committee has adopted a statement of policy that describes the experience, qualifications, attributes, and skills that are necessary and desirable for potential Independent Trustee candidates (Statement of Policy). The Board believes that each Trustee satisfied at the time he or she was initially elected or appointed a Trustee, and continues to satisfy, the standards contemplated by the Statement of Policy. The Governance and Nominating Committee also engages professional search firms to help identify potential Independent Trustee candidates who have the experience, qualifications, attributes, and skills consistent with the Statement of Policy. From time to time, additional criteria based on the composition and skills of the current Independent Trustees, as well as experience or skills that may be appropriate in light of future changes to board composition, business conditions, and regulatory or other developments, have also been considered by the professional search firms and the Governance and Nominating Committee. In addition, the Board takes into account the Trustees' commitment and participation in Board and committee meetings, as well as their leadership of standing and ad hoc committees throughout their tenure.
In determining that a particular Trustee was and continues to be qualified to serve as a Trustee, the Board has considered a variety of criteria, none of which, in isolation, was controlling. The Board believes that, collectively, the Trustees have balanced and diverse experience, qualifications, attributes, and skills, which allow the Board to operate effectively in governing the fund and protecting the interests of shareholders. Information about the specific experience, skills, attributes, and qualifications of each Trustee, which in each case led to the Board's conclusion that the Trustee should serve (or continue to serve) as a trustee of the fund, is provided below.
Board Structure and Oversight Function. Abigail P. Johnson is an interested person and currently serves as Chairman. The Trustees have determined that an interested Chairman is appropriate and benefits shareholders because an interested Chairman has a personal and professional stake in the quality and continuity of services provided to the fund. Independent Trustees exercise their informed business judgment to appoint an individual of their choosing to serve as Chairman, regardless of whether the Trustee happens to be independent or a member of management. The Independent Trustees have determined that they can act independently and effectively without having an Independent Trustee serve as Chairman and that a key structural component for assuring that they are in a position to do so is for the Independent Trustees to constitute a substantial majority for the Board. The Independent Trustees also regularly meet in executive session. Marie L. Knowles serves as Chairman of the Independent Trustees and as such (i) acts as a liaison between the Independent Trustees and management with respect to matters important to the Independent Trustees and (ii) with management prepares agendas for Board meetings.
Fidelity® funds are overseen by different Boards of Trustees. The fund's Board oversees Fidelity's investment-grade bond, money market, asset allocation and certain equity funds, and other Boards oversee Fidelity's high income, sector and other equity funds. The asset allocation funds may invest in Fidelity® funds that are overseen by such other Boards. The use of separate Boards, each with its own committee structure, allows the Trustees of each group of Fidelity® funds to focus on the unique issues of the funds they oversee, including common research, investment, and operational issues. On occasion, the separate Boards establish joint committees to address issues of overlapping consequences for the Fidelity® funds overseen by each Board.
The Trustees operate using a system of committees to facilitate the timely and efficient consideration of all matters of importance to the Trustees, the fund, and fund shareholders and to facilitate compliance with legal and regulatory requirements and oversight of the fund's activities and associated risks. The Board, acting through its committees, has charged FMR and its affiliates with (i) identifying events or circumstances the occurrence of which could have demonstrably adverse effects on the fund's business and/or reputation; (ii) implementing processes and controls to lessen the possibility that such events or circumstances occur or to mitigate the effects of such events or circumstances if they do occur; and (iii) creating and maintaining a system designed to evaluate continuously business and market conditions in order to facilitate the identification and implementation processes described in (i) and (ii) above. Because the day-to-day operations and activities of the fund are carried out by or through FMR, its affiliates, and other service providers, the fund's exposure to risks is mitigated but not eliminated by the processes overseen by the Trustees. While each of the Board's committees has responsibility for overseeing different aspects of the fund's activities, oversight is exercised primarily through the Operations and Audit Committees. In addition, an ad hoc Board committee of Independent Trustees has worked with FMR to enhance the Board's oversight of investment and financial risks, legal and regulatory risks, technology risks, and operational risks, including the development of additional risk reporting to the Board. The Operations Committee also worked and continues to work with FMR to enhance the stress tests required under SEC regulations for money market funds. Appropriate personnel, including but not limited to the fund's Chief Compliance Officer (CCO), FMR's internal auditor, the independent accountants, the fund's Treasurer and portfolio management personnel, make periodic reports to the Board's committees, as appropriate, including an annual review of Fidelity's risk management program for the Fidelity® funds. The responsibilities of each standing committee, including their oversight responsibilities, are described further under "Standing Committees of the Trustees."
Interested Trustees*:
Correspondence intended for a Trustee who is an interested person may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Abigail P. Johnson (1961)
Year of Election or Appointment: 2009
Trustee
Chairman of the Board of Trustees
Ms. Johnson also serves as Trustee of other Fidelity® funds. Ms. Johnson serves as President (2013-present) and Chief Executive Officer (2014-present) of FMR LLC (diversified financial services company), President of Fidelity Financial Services (2012-present) and President of Personal, Workplace and Institutional Services (2005-present). Ms. Johnson is Chairman and Director of FMR Co., Inc. (investment adviser firm, 2011-present), Chairman and Director of FMR (investment adviser firm, 2011-present), and the Vice Chairman and Director (2007-present) of FMR LLC. Previously, Ms. Johnson served as President and a Director of FMR (2001-2005), a Trustee of other investment companies advised by FMR, Fidelity Investments Money Management, Inc. (investment adviser firm), and FMR Co., Inc. (2001-2005), Senior Vice President of the Fidelity® funds (2001-2005), and managed a number of Fidelity® funds. Ms. Abigail P. Johnson and Mr. Arthur E. Johnson are not related.
Jennifer Toolin McAuliffe (1959)
Year of Election or Appointment: 2016
Trustee
Ms. McAuliffe also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Ms. McAuliffe previously served as Co-Head of Fixed Income of Fidelity Investments Limited (now known as FIL Limited (FIL)) (diversified financial services company). Earlier roles at FIL included Director of Research for FIL’s credit and quantitative teams in London, Hong Kong and Tokyo. Ms. McAuliffe also was the Director of Research for taxable and municipal bonds at Fidelity Investments Money Management, Inc. Ms. McAuliffe is also a director or trustee of several not-for-profit entities.
* Determined to be an “Interested Trustee” by virtue of, among other things, his or her affiliation with the trust or various entities under common control with FMR.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Independent Trustees:
Correspondence intended for an Independent Trustee may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.
Name, Year of Birth; Principal Occupations and Other Relevant Experience+
Elizabeth S. Acton (1951)
Year of Election or Appointment: 2015
Trustee
Ms. Acton also serves as Trustee of other Fidelity® funds. Prior to her retirement in April 2012, Ms. Acton was Executive Vice President, Finance (2011-2012), Executive Vice President, Chief Financial Officer (2002-2011), and Treasurer (2004-2005) of Comerica Incorporated (financial services). Prior to joining Comerica, Ms. Acton held a variety of positions at Ford Motor Company (1983-2002), including Vice President and Treasurer (2000-2002) and Executive Vice President and Chief Financial Officer of Ford Motor Credit Company (1998-2000). Ms. Acton currently serves as a member of the Board of Directors and Audit and Finance Committees of Beazer Homes USA, Inc. (homebuilding, 2012-present). Previously, Ms. Acton served as a Member of the Advisory Board of certain Fidelity® funds (2013-2016).
John Engler (1948)
Year of Election or Appointment: 2015
Trustee
Mr. Engler also serves as Trustee of other Fidelity® funds. He serves as president of the Business Roundtable (2011-present), and on the board of directors for Universal Forest Products (manufacturer and distributor of wood and wood-alternative products, 2003-present) and K12 Inc. (technology-based education company, 2012-present). Previously, Mr. Engler served as a Member of the Advisory Board of certain Fidelity® funds (2014-2016), a trustee of The Munder Funds (2003-2014), president and CEO of the National Association of Manufacturers (2004-2011), member of the Board of Trustees of the Annie E. Casey Foundation (2004-2015), and as governor of Michigan (1991-2003). He is a past chairman of the National Governors Association.
Albert R. Gamper, Jr. (1942)
Year of Election or Appointment: 2006
Trustee
Mr. Gamper also serves as Trustee of other Fidelity® funds. Prior to his retirement in December 2004, Mr. Gamper served as Chairman of the Board of CIT Group Inc. (commercial finance). During his tenure with CIT Group Inc. Mr. Gamper served in numerous senior management positions, including Chairman (1987-1989; 1999-2001; 2002-2004), Chief Executive Officer (1987-2004), and President (2002-2003). Mr. Gamper currently serves as a member of the Board of Directors of Public Service Enterprise Group (utilities, 2000-present), and Member of the Board of Trustees of Barnabas Health Care System (1997-present). Previously, Mr. Gamper served as Chairman (2012-2015) and Vice Chairman (2011-2012) of the Independent Trustees of certain Fidelity® funds and as Chairman of the Board of Governors, Rutgers University (2004-2007).
Robert F. Gartland (1951)
Year of Election or Appointment: 2010
Trustee
Mr. Gartland also serves as Trustee of other Fidelity® funds. Mr. Gartland is Chairman and an investor in Gartland & Mellina Group Corp. (consulting, 2009-present). Previously, Mr. Gartland served as a partner and investor of Vietnam Partners LLC (investments and consulting, 2008-2011). Prior to his retirement, Mr. Gartland held a variety of positions at Morgan Stanley (financial services, 1979-2007) including Managing Director (1987-2007).
Arthur E. Johnson (1947)
Year of Election or Appointment: 2008
Trustee
Vice Chairman of the Independent Trustees
Mr. Johnson also serves as Trustee of other Fidelity® funds. Mr. Johnson serves as a member of the Board of Directors of Eaton Corporation plc (diversified power management, 2009-present), AGL Resources, Inc. (holding company, 2002-present) and Booz Allen Hamilton (management consulting, 2011-present). Prior to his retirement, Mr. Johnson served as Senior Vice President of Corporate Strategic Development of Lockheed Martin Corporation (defense contractor, 1999-2009). He previously served on the Board of Directors of IKON Office Solutions, Inc. (1999-2008) and Delta Airlines (2005-2007). Mr. Arthur E. Johnson is not related to Ms. Abigail P. Johnson.
Michael E. Kenneally (1954)
Year of Election or Appointment: 2009
Trustee
Mr. Kenneally also serves as Trustee of other Fidelity® funds. Prior to his retirement, Mr. Kenneally served as Chairman and Global Chief Executive Officer of Credit Suisse Asset Management. Before joining Credit Suisse, he was an Executive Vice President and Chief Investment Officer for Bank of America Corporation. Earlier roles at Bank of America included Director of Research, Senior Portfolio Manager and Research Analyst, and Mr. Kenneally was awarded the Chartered Financial Analyst (CFA) designation in 1991.
James H. Keyes (1940)
Year of Election or Appointment: 2007
Trustee
Mr. Keyes also serves as Trustee of other Fidelity® funds. Mr. Keyes serves as a member of the Board and Non-Executive Chairman of Navistar International Corporation (manufacture and sale of trucks, buses, and diesel engines, since 2002). Previously, Mr. Keyes served as a member of the Board of Pitney Bowes, Inc. (integrated mail, messaging, and document management solutions, 1998-2013). Prior to his retirement, Mr. Keyes served as Chairman (1993-2002) and Chief Executive Officer (1988-2002) of Johnson Controls (automotive, building, and energy) and as a member of the Board of LSI Logic Corporation (semiconductor technologies, 1984-2008).
Marie L. Knowles (1946)
Year of Election or Appointment: 2001
Trustee
Chairman of the Independent Trustees
Ms. Knowles also serves as Trustee of other Fidelity® funds. Prior to Ms. Knowles' retirement in June 2000, she served as Executive Vice President and Chief Financial Officer of Atlantic Richfield Company (ARCO) (diversified energy, 1996-2000). From 1993 to 1996, she was a Senior Vice President of ARCO and President of ARCO Transportation Company (pipeline and tanker operations). Ms. Knowles currently serves as a Director and Chairman of the Audit Committee of McKesson Corporation (healthcare service, since 2002). Ms. Knowles is a member of the Board of the Santa Catalina Island Company (real estate, 2009-present). Ms. Knowles is a Member of the Investment Company Institute Board of Governors and a Member of the Governing Council of the Independent Directors Council (2014-present). She also serves as a member of the Advisory Board for the School of Engineering of the University of Southern California. Previously, Ms. Knowles served as a Director of Phelps Dodge Corporation (copper mining and manufacturing, 1994-2007), URS Corporation (engineering and construction, 2000-2003) and America West (airline, 1999-2002). Ms. Knowles previously served as Vice Chairman of the Independent Trustees of certain Fidelity® funds (2012-2015).
Mark A. Murray (1954)
Year of Election or Appointment: 2016
Trustee
Mr. Murray also serves as Trustee or Member of the Advisory Board of other Fidelity® funds. Mr. Murray is Vice Chairman (2013-present) of Meijer, Inc. (regional retail chain). Previously, Mr. Murray served as Co-Chief Executive Officer (2013-2016) and President (2006-2013) of Meijer, Inc. Mr. Murray serves as a member of the Board of Directors and Nuclear Review and Public Policy and Responsibility Committees of DTE Energy Company (diversified energy company, 2009-present). Mr. Murray also serves as a member of the Board of Directors of Spectrum Health (not-for-profit health system, 2015-present). Mr. Murray previously served as President of Grand Valley State University (2001-2006), Treasurer for the State of Michigan (1999-2001), Vice President of Finance and Administration for Michigan State University (1998-1999), and a member of the Board of Directors and Audit Committee and Chairman of the Nominating and Corporate Governance Committee of Universal Forest Products, Inc. (manufacturer and distributor of wood and wood-alternative products, 2004-2016). Mr. Murray is also a director or trustee of many community and professional organizations.
+ The information includes the Trustee's principal occupation during the last five years and other information relating to the experience, attributes, and skills relevant to the Trustee's qualifications to serve as a Trustee, which led to the conclusion that the Trustee should serve as a Trustee for the fund.
Advisory Board Members and Officers:
Correspondence intended for an officer may be sent to Fidelity Investments, 245 Summer Street, Boston, Massachusetts 02210. Officers appear below in alphabetical order.
Name, Year of Birth; Principal Occupation
Marc R. Bryant (1966)
Year of Election or Appointment: 2015
Secretary and Chief Legal Officer (CLO)
Mr. Bryant also serves as Secretary and CLO of other funds. Mr. Bryant serves as CLO, Secretary, and Senior Vice President of Fidelity Management & Research Company (investment adviser firm, 2015-present) and FMR Co., Inc. (investment adviser firm, 2015-present); Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2015-present) and Fidelity Investments Money Management, Inc. (investment adviser firm, 2015-present); and CLO of Fidelity Management & Research (Hong Kong) Limited and FMR Investment Management (U.K.) Limited (investment adviser firms, 2015-present) and Fidelity Management & Research (Japan) Limited (investment adviser firm, 2016-present). He is Senior Vice President and Deputy General Counsel of FMR LLC (diversified financial services company). Previously, Mr. Bryant served as Secretary and CLO of Fidelity Rutland Square Trust II (2010-2014) and Assistant Secretary of Fidelity's Fixed Income and Asset Allocation Funds (2013-2015). Prior to joining Fidelity Investments, Mr. Bryant served as a Senior Vice President and the Head of Global Retail Legal for AllianceBernstein L.P. (2006-2010), and as the General Counsel for ProFund Advisors LLC (2001-2006).
Jeffrey S. Christian (1961)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Christian also serves as Assistant Treasurer of other funds. Mr. Christian is an employee of Fidelity Investments (2003-present).
Jonathan Davis (1968)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Davis also serves as Assistant Treasurer of other funds, and is an employee of Fidelity Investments. Previously, Mr. Davis served as Vice President and Associate General Counsel of FMR LLC (diversified financial services company, 2003-2010).
Adrien E. Deberghes (1967)
Year of Election or Appointment: 2010
Assistant Treasurer
Mr. Deberghes also serves as an officer of other funds. He serves as Executive Vice President of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2016-present) and is an employee of Fidelity Investments (2008-present). Prior to joining Fidelity Investments, Mr. Deberghes was Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005). Previously, Mr. Deberghes served in other fund officer roles.
Stephanie J. Dorsey (1969)
Year of Election or Appointment: 2013
President and Treasurer
Ms. Dorsey also serves as an officer of other funds. She is an employee of Fidelity Investments (2008-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Dorsey served as Treasurer (2004-2008) of the JPMorgan Mutual Funds and Vice President (2004-2008) of JPMorgan Chase Bank.
Howard J. Galligan III (1966)
Year of Election or Appointment: 2014
Chief Financial Officer
Mr. Galligan also serves as Chief Financial Officer of other funds. Mr. Galligan serves as President of Fidelity Pricing and Cash Management Services (FPCMS) (2014-present) and as a Director of Strategic Advisers, Inc. (investment adviser firm, 2008-present). Previously, Mr. Galligan served as Chief Administrative Officer of Asset Management (2011-2014) and Chief Operating Officer and Senior Vice President of Investment Support for Strategic Advisers, Inc. (2003-2011).
Scott C. Goebel (1968)
Year of Election or Appointment: 2015
Vice President
Mr. Goebel serves as Vice President of other funds and is an employee of Fidelity Investments (2001-present). Mr. Goebel serves as Senior Vice President of Fidelity Management & Research Company (FMR) (investment adviser firm, 2016-present). Previously, Mr. Goebel served as Secretary of Fidelity SelectCo, LLC (investment adviser firm, 2013-2015), Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm, 2010-2015), and Fidelity Research and Analysis Company (FRAC) (investment adviser firm, 2010-2015); General Counsel, Secretary, and Senior Vice President of FMR (investment adviser firm, 2008-2015) and FMR Co., Inc. (investment adviser firm, 2008-2015); Assistant Secretary of Fidelity Management & Research (Japan) Limited (investment adviser firm, 2008-2015) and Fidelity Management & Research (U.K.) Inc. (investment adviser firm, 2008-2015); Chief Legal Officer (CLO) of Fidelity Management & Research (Hong Kong) Limited (investment adviser firm, 2008-2015); Secretary and CLO of certain Fidelity® funds (2008-2015); Assistant Secretary of FIMM (2008-2010), FRAC (2008-2010), and certain funds (2007-2008); and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).
Colm A. Hogan (1973)
Year of Election or Appointment: 2016
Assistant Treasurer
Mr. Hogan also serves as an officer of other funds. Mr. Hogan is an employee of Fidelity Investments (2005-present).
Timothy Huyck (1964)
Year of Election or Appointment: 2015
Vice President of Fidelity's Money Market Funds
Mr. Huyck also serves as Vice President of other funds. Mr. Huyck serves as Chief Investment Officer of Fidelity's Money Market Funds (2015-present) and is an employee of Fidelity Investments (1990-present).
Chris Maher (1972)
Year of Election or Appointment: 2013
Assistant Treasurer
Mr. Maher serves as Assistant Treasurer of other funds. Mr. Maher is Vice President of Valuation Oversight and is an employee of Fidelity Investments. Previously, Mr. Maher served as Vice President of Asset Management Compliance (2013), Vice President of the Program Management Group of FMR (investment adviser firm, 2010-2013), and Vice President of Valuation Oversight (2008-2010).
John B. McGinty, Jr. (1962)
Year of Election or Appointment: 2016
Chief Compliance Officer
Mr. McGinty also serves as Chief Compliance Officer of other funds. Mr. McGinty is Senior Vice President of Asset Management Compliance for Fidelity Investments and is an employee of Fidelity Investments (2016-present). Mr. McGinty previously served as Vice President, Senior Attorney at Eaton Vance Management (investment management firm, 2015-2016), and prior to Eaton Vance as global CCO for all firm operations and registered investment companies at GMO LLC (investment management firm, 2009-2015). Before joining GMO LLC, Mr. McGinty served as Senior Vice President, Deputy General Counsel for Fidelity Investments (2007-2009).
John F. Papandrea (1972)
Year of Election or Appointment: 2016
Anti-Money Laundering (AML) Officer
Mr. Papandrea also serves as AML Officer of other funds. Mr. Papandrea is Vice President of FMR LLC (diversified financial services company, 2008-present) and is an employee of Fidelity Investments (2005-present).
Jason P. Pogorelec (1975)
Year of Election or Appointment: 2015
Assistant Secretary
Mr. Pogorelec also serves as Assistant Secretary of other funds. Mr. Pogorelec serves as Vice President, Associate General Counsel (2010-present) and is an employee of Fidelity Investments (2006-present).
Nancy D. Prior (1967)
Year of Election or Appointment: 2014
Vice President
Ms. Prior also serves as Vice President of other funds. Ms. Prior serves as a Director of FMR Investment Management (U.K.) Limited (investment adviser firm, 2015-present), President (2016-present) and Director (2014-present) of Fidelity Investments Money Management, Inc. (FIMM) (investment adviser firm), President, Fixed Income (2014-present), Vice Chairman of FIAM LLC (investment adviser firm, 2014-present), and is an employee of Fidelity Investments (2002-present). Previously, Ms. Prior served as Vice President of Fidelity's Money Market Funds (2012-2014), President, Money Market and Short Duration Bond Group of Fidelity Management & Research (FMR) (investment adviser firm, 2013-2014), President, Money Market Group of FMR (2011-2013), Managing Director of Research (2009-2011), Senior Vice President and Deputy General Counsel (2007-2009), and Assistant Secretary of certain Fidelity® funds (2008-2009).
Stacie M. Smith (1974)
Year of Election or Appointment: 2013
Assistant Treasurer
Ms. Smith also serves as an officer of other funds. She is an employee of Fidelity Investments (2009-present) and has served in other fund officer roles. Prior to joining Fidelity Investments, Ms. Smith served as Senior Audit Manager of Ernst & Young LLP (1996-2009). Previously, Ms. Smith served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Renee Stagnone (1975)
Year of Election or Appointment: 2016
Assistant Treasurer
Ms. Stagnone also serves as an officer of other funds. Ms. Stagnone is an employee of Fidelity Investments (1997-present). Previously, Ms. Stagnone served as Deputy Treasurer of certain Fidelity® funds (2013-2016).
Shareholder Expense Example
As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.
The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (March 1, 2016 to August 31, 2016).
Actual Expenses
The first line of the accompanying table provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes
The second line of the accompanying table provides information about hypothetical account values and hypothetical expenses based on the Fund's actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Fund's actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.
| | Annualized Expense Ratio-A | Beginning
Account Value
March 1, 2016 | Ending
Account Value
August 31, 2016 | Expenses Paid
During Period-B
March 1, 2016
to August 31, 2016 |
| Actual | .42% | $1,000.00 | $1,000.10 | $2.11 |
| Hypothetical-C | | $1,000.00 | $1,023.03 | $2.14 |
A Annualized expense ratio reflects expenses net of applicable fee waivers.
B Expenses are equal to the Fund's annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/366 (to reflect the one-half year period).
C 5% return per year before expenses
Distributions (Unaudited)
A total of 70.89% of the dividends distributed during the fiscal year was derived from interest on U.S. Government securities which is generally exempt from state income tax.
The fund designates $1,712,963 of distributions paid during the period January 1, 2016 to August 31, 2016 as qualifying to be taxed as interest-related dividends for nonresident alien shareholders.
The fund will notify shareholders in January 2017 of amounts for use in preparing 2016 income tax returns.
Proxy Voting Results
A special meeting of shareholders was held on October 5, 2015. The results of votes taken among shareholders on the proposal before them are reported below. Each vote reported represents one dollar of net asset value held on the record date for the meeting.
PROPOSAL 2
| To modify the fund's fundamental concentration policy. |
| | # of
Votes | % of
Votes |
| Affirmative | 4,746,455,620.09 | 79.045 |
| Against | 425,894,111.92 | 7.093 |
| Abstain | 832,191,855.36 | 13.858 |
| Broker Non–Votes | 282,088.11 | 0.004 |
| TOTAL | 6,004,823,675.48 | 100.000 |
Corporate Headquarters
245 Summer St.
Boston, MA 02210
www.fidelity.com
RMM-ANN-1016
1.768778.114
Item 2.
Code of Ethics
As of the end of the period, August 31, 2016, Fidelity Money Market Trust (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.
Item 3.
Audit Committee Financial Expert
The Board of Trustees of the trust has determined that Elizabeth S. Acton is an audit committee financial expert, as defined in Item 3 of Form N-CSR. Ms. Acton is independent for purposes of Item 3 of Form N-CSR.
Item 4.
Principal Accountant Fees and Services
Fees and Services
The following table presents fees billed by PricewaterhouseCoopers LLP (“PwC”) in each of the last two fiscal years for services rendered to Retirement Government Money Market Portfolio and Retirement Government Money Market II Portfolio (the “Funds”):
Services Billed by PwC
August 31, 2016 FeesA
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Retirement Government Money Market Portfolio | $48,000 | $- | $2,200 | $2,300 |
Retirement Government Money Market II Portfolio | $51,000 | $- | $2,200 | $3,300 |
| | | | |
| Audit Fees | Audit-Related Fees | Tax Fees | All Other Fees |
Retirement Government Money Market Portfolio | $47,000 | $- | $2,100 | $2,800 |
Retirement Government Money Market II Portfolio | $54,000 | $- | $2,100 | $6,000 |
A Amounts may reflect rounding.
The following table presents fees billed by PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company (“FMR”) and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds (“Fund Service Providers”):
Services Billed by PwC
| | |
| August 31, 2016A | August 31, 2015A |
Audit-Related Fees | $5,760,000 | $4,730,000 |
Tax Fees | $10,000 | $- |
All Other Fees | $- | $- |
A Amounts may reflect rounding.
“Audit-Related Fees” represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.
“Tax Fees” represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.
“All Other Fees” represent fees billed for services provided to the fund or Fund Service Provider, a significant portion of which are assurance related, that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.
Assurance services must be performed by an independent public accountant.
* * *
The aggregate non-audit fees billed by PwC for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:
| | |
Billed By | August 31, 2016 A | August 31, 2015 A |
PwC | $6,535,000 | $6,065,000 |
A Amounts may reflect rounding.
The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR’s review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.
Audit Committee Pre-Approval Policies and Procedures
The trust’s Audit Committee must pre-approve all audit and non-audit services provided by a fund’s independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.
The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee’s consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund (“Covered Service”) are subject to approval by the Audit Committee before such service is provided.
All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair’s absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.
Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.
Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X (“De Minimis Exception”)
There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds’ last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.
Item 5.
Audit Committee of Listed Registrants
Not applicable.
Item 6.
Investments
(a)
Not applicable.
(b)
Not applicable
Item 7.
Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not applicable.
Item 8.
Portfolio Managers of Closed-End Management Investment Companies
Not applicable.
Item 9.
Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers
Not applicable.
Item 10.
Submission of Matters to a Vote of Security Holders
There were no material changes to the procedures by which shareholders may recommend nominees to the trust’s Board of Trustees.
Item 11.
Controls and Procedures
(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.
(a)(ii) There was no change in the trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust’s internal control over financial reporting.
Item 12.
Exhibits
| | |
(a) | (1) | Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH. |
(a) | (2) | Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT. |
(a) | (3) | Not applicable. |
(b) | | Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT. |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Fidelity Money Market Trust
| |
By: | /s/ Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
| |
Date: | October 26, 2016 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
| |
By: | /s/Stephanie J. Dorsey |
| Stephanie J. Dorsey |
| President and Treasurer |
| |
Date: | October 26, 2016 |
| |
By: | /s/Howard J. Galligan III |
| Howard J. Galligan III |
| Chief Financial Officer |
| |
Date: | October 26, 2016 |
