UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSRS
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-07038
The Money Market Portfolios
(Exact name of registrant as specified in charter)
One Franklin Parkway
, San Mateo, CA 94403-1906
(Address of principal executive offices) (Zip code)
Craig S. Tyle, One Franklin Parkway, San Mateo, CA 94403-1906
(Name and address of agent for service)
Registrant's telephone number, including area code:__650 312-2000
Date of fiscal year end: 6/30
Date of reporting period: 12/31/20
Item 1. Reports to Stockholders.
a.)
The following is a copy of the report transmitted to shareholders pursuant to Rule30e-1 under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30e-1.)
b.)
A copy of the notice transmitted to shareholders in reliance on Rule 30e-3 under the 1940 Act that contains disclosures specified by paragraph (c)(3) of that rule is included in the Annual Report. Not Applicable.
The
Money
Market
Portfolios
Financial
Highlights
The
U.S.
Government
Money
Market
Portfolio
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
1
a
Six
Months
Ended
December
31,
2020
(unaudited)
Year
Ended
June
30,
2020
2019
2018
2017
2016
Per
share
operating
performance
(for
a
share
outstanding
throughout
the
period)
Net
asset
value,
beginning
of
period
.....
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
Income
from
investment
operations:
Net
investment
income
(loss)
.........
—
a
0.013
0.021
0.011
0.003
0.001
Net
realized
and
unrealized
gains
(losses)
a
........................
(—)
—
—
(—)
—
—
Total
from
investment
operations
........
—
a
0.013
0.021
0.011
0.003
0.001
Less
distributions
from:
Net
investment
income
..............
—
a
(0.013)
(0.021)
(0.011)
(0.003)
(0.001)
Net
asset
value,
end
of
period
..........
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
Total
return
b
.......................
—%
1.29%
2.10%
1.15%
0.35%
0.07%
Ratios
to
average
net
assets
c
Expenses
before
waiver
and
payments
by
affiliates
..........................
0.15%
0.15%
0.15%
0.15%
0.15%
0.15%
Expenses
net
of
waiver
and
payments
by
affiliates
d
..........................
0.13%
0.15%
0.15%
0.15%
0.15%
0.13%
Net
investment
income
...............
—%
e
1.33%
2.09%
1.15%
0.35%
0.06%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$12,365,747
$18,381,976
$23,218,541
$23,700,037
$21,564,546
$22,324,993
a
Amount
rounds
to
less
than
$0.001
per
share.
b
Total
return
is
not
annualized
for
periods
less
than
one
year.
c
Ratios
are
annualized
for
periods
less
than
one
year.
d
Benefit
of
expense
reduction
rounds
to
less
than
0.01%.
e
Rounds
to
less
than
0.01%.
The
Money
Market
Portfolios
Statement
of
Investments
(unaudited),
December
31,
2020
The
U.S.
Government
Money
Market
Portfolio
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
a
Principal
Amount
a
Value
U.S.
Government
and
Agency
Securities
87.9%
FFCB
,
a
1/04/21
.........................................................
$
106,800,000
$
106,799,911
a
1/12/21
.........................................................
40,000,000
39,999,236
b
FRN,
0.19%,
(SOFRRATE
+
0.1%),
1/05/21
..............................
90,000,000
90,000,000
b
FRN,
0.17%,
(SOFRRATE
+
0.08%),
1/14/21
.............................
17,000,000
17,000,000
b
FRN,
0.26%,
(SOFRRATE
+
0.17%),
3/15/22
.............................
66,000,000
66,000,000
b
FRN,
0.29%,
(SOFRRATE
+
0.2%),
6/23/22
..............................
100,000,000
100,000,000
b
FRN,
0.28%,
(SOFRRATE
+
0.19%),
7/14/22
.............................
35,000,000
35,000,000
b
FRN,
0.235%,
(SOFRRATE
+
0.145%),
7/28/22
...........................
9,000,000
9,000,000
b
FRN,
0.155%,
(SOFRRATE
+
0.065%),
11/18/22
..........................
25,000,000
25,000,000
488,799,147
FHLB
,
a
1/04/21
.........................................................
361,500,000
361,497,874
a
1/05/21
.........................................................
339,951,000
339,949,445
a
1/06/21
.........................................................
425,860,000
425,855,002
a
1/07/21
.........................................................
50,000,000
49,999,417
a
1/08/21
.........................................................
278,000,000
277,995,239
a
1/12/21
.........................................................
27,380,000
27,379,247
a
1/13/21
.........................................................
150,000,000
149,996,217
a
1/15/21
.........................................................
240,300,000
240,292,616
a
1/20/21
.........................................................
100,000,000
99,994,722
a
1/22/21
.........................................................
95,000,000
94,995,403
a
2/03/21
.........................................................
137,088,000
137,079,132
a
2/05/21
.........................................................
140,000,000
139,990,336
a
2/10/21
.........................................................
50,000,000
49,995,833
a
2/12/21
.........................................................
100,000,000
99,990,317
a
2/17/21
.........................................................
50,000,000
49,994,451
a
2/19/21
.........................................................
100,000,000
99,988,158
a
3/08/21
.........................................................
10,000,000
9,993,950
a
3/12/21
.........................................................
58,000,000
57,991,542
a
3/17/21
.........................................................
50,000,000
49,991,771
a
3/19/21
.........................................................
150,000,000
149,938,828
b
FRN,
0.25%,
(SOFRRATE
+
0.16%),
1/07/21
.............................
100,000,000
100,000,000
b
FRN,
0.23%,
(SOFRRATE
+
0.14%),
1/08/21
.............................
95,000,000
95,000,000
b
FRN,
0.19%,
(SOFRRATE
+
0.1%),
2/22/21
..............................
230,000,000
229,996,703
b
FRN,
0.125%,
(SOFRRATE
+
0.035%),
2/25/21
...........................
27,500,000
27,500,000
b
FRN,
0.17%,
(SOFRRATE
+
0.08%),
3/04/21
.............................
190,000,000
190,000,000
b
FRN,
0.225%,
(SOFRRATE
+
0.135%),
3/10/21
...........................
60,000,000
60,000,000
b
FRN,
0.32%,
(SOFRRATE
+
0.23%),
4/13/21
.............................
100,000,000
100,000,000
b
FRN,
0.24%,
(SOFRRATE
+
0.15%),
11/15/21
............................
40,000,000
40,000,000
b
FRN,
0.125%,
(SOFRRATE
+
0.035%),
12/10/21
..........................
50,000,000
50,000,000
b
FRN,
0.145%,
(SOFRRATE
+
0.055%),
5/13/22
...........................
50,000,000
50,000,000
b
FRN,
0.15%,
(SOFRRATE
+
0.06%),
11/18/22
............................
50,000,000
50,000,000
3,905,406,203
b
FHLMC
,
FRN,
0.39%,
(SOFRRATE
+
0.3%),
10/25/21
.............................
50,000,000
50,000,000
FRN,
0.25%,
(SOFRRATE
+
0.16%),
4/20/22
.............................
195,000,000
195,000,000
FRN,
0.28%,
(SOFRRATE
+
0.19%),
5/11/22
.............................
100,000,000
100,000,000
345,000,000
b
FNMA
,
FRN,
0.42%,
(SOFRRATE
+
0.33%),
10/15/21
............................
50,000,000
50,000,000
FRN,
0.41%,
(SOFRRATE
+
0.32%),
10/22/21
............................
50,000,000
50,000,000
FRN,
0.45%,
(SOFRRATE
+
0.36%),
1/20/22
.............................
50,000,000
50,000,000
FRN,
0.39%,
(SOFRRATE
+
0.3%),
1/27/22
..............................
50,000,000
50,000,000
FRN,
0.41%,
(SOFRRATE
+
0.32%),
4/27/22
.............................
50,000,000
50,000,000
The
Money
Market
Portfolios
Statement
of
Investments
(unaudited)
The
U.S.
Government
Money
Market
Portfolio
(continued)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
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financial
statements.
Semiannual
Report
3
a
a
Principal
Amount
a
Value
U.S.
Government
and
Agency
Securities
(continued)
b
FNMA,
(continued)
FRN,
0.32%,
(SOFRRATE
+
0.23%),
5/06/22
.............................
$
50,000,000
$
50,000,000
300,000,000
a
U.S.
Treasury
Bills
,
1/05/21
.........................................................
234,015,000
234,012,790
1/07/21
.........................................................
226,790,000
226,786,277
1/12/21
.........................................................
186,550,000
186,546,295
1/14/21
.........................................................
190,000,000
189,992,453
1/19/21
.........................................................
356,660,000
356,647,298
1/21/21
.........................................................
273,760,000
273,747,565
1/26/21
.........................................................
340,000,000
339,978,472
1/28/21
.........................................................
259,260,000
259,243,625
2/02/21
.........................................................
150,000,000
149,990,000
2/04/21
.........................................................
95,000,000
94,992,822
2/09/21
.........................................................
345,000,000
344,968,042
2/11/21
.........................................................
290,000,000
289,963,669
2/16/21
.........................................................
144,340,000
144,325,245
2/18/21
.........................................................
137,255,000
137,235,784
2/23/21
.........................................................
140,000,000
139,981,450
2/25/21
.........................................................
100,000,000
99,984,722
3/04/21
.........................................................
45,000,000
44,991,862
3/11/21
.........................................................
190,000,000
189,967,417
3/18/21
.........................................................
150,000,000
149,969,917
3/23/21
.........................................................
95,000,000
94,981,831
3/30/21
.........................................................
195,000,000
194,952,517
4/01/21
.........................................................
76,020,000
76,000,045
4/08/21
.........................................................
145,000,000
144,968,744
4/13/21
.........................................................
250,000,000
249,932,000
4/15/21
.........................................................
200,000,000
199,950,889
4/20/21
.........................................................
45,000,000
44,986,375
4/22/21
.........................................................
95,000,000
94,973,637
4/27/21
.........................................................
203,380,000
203,321,020
5/06/21
.........................................................
100,000,000
99,961,806
5/20/21
.........................................................
85,000,000
84,967,181
5/25/21
.........................................................
95,000,000
94,965,800
6/01/21
.........................................................
300,000,000
299,880,458
6/10/21
.........................................................
90,000,000
89,964,000
5,827,132,008
Total
U.S.
Government
and
Agency
Securities
(Cost
$10,866,337,358)
.............
10,866,337,358
c
Repurchase
Agreements
11.4%
BNP
Paribas
Securities
Corp.,
0.05%,
1/04/21
(Maturity
Value
$600,003,333)
Collateralized
by
U.S.
Treasury
Note,
1.625%,
11/15/22
(valued
at
$612,113,094)
..
600,000,000
600,000,000
Deutsche
Bank
Securities,
Inc.,
0.06%,
1/04/21
(Maturity
Value
$56,000,373)
Collateralized
by
U.S.
Treasury
Bond,
7.25%,
8/15/22;
and
U.S.
Treasury
Notes,
0.125%
-
4.375%,
2/15/21
-
8/31/25
(valued
at
$57,120,087)
.................
56,000,000
56,000,000
Federal
Reserve
Bank
of
New
York,
0%,
1/04/21
(Maturity
Value
$500,000,000)
Collateralized
by
U.S.
Treasury
Bond,
4.375%,
5/15/40
(valued
at
$500,000,001)
..
500,000,000
500,000,000
Goldman
Sachs
&
Co.
LLC,
0.03%,
1/04/21
(Maturity
Value
$125,000,417)
Collateralized
by
U.S.
Treasury
Note,
2.875%,
5/31/25
(valued
at
$127,602,586)
..
125,000,000
125,000,000
The
Money
Market
Portfolios
Statement
of
Investments
(unaudited)
The
U.S.
Government
Money
Market
Portfolio
(continued)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
4
See
abbreviations
on
page
11
.
a
a
Principal
Amount
a
Value
c
Repurchase
Agreements
(continued)
HSBC
Securities,
Inc.,
0.06%,
1/04/21
(Maturity
Value
$135,000,900)
Collateralized
by
U.S.
Government
Agency
Securities,
4%
-
4.25%,
2/20/49
-
2/20/50
(valued
at
$137,700,000)
............................................
$
135,000,000
$
135,000,000
Total
Repurchase
Agreements
(Cost
$1,416,000,000)
............................
1,416,000,000
Total
Short
Term
Investments
(Cost
$12,282,337,358
)
............................
12,282,337,358
a
Total
Investments
(Cost
$12,282,337,358)
99.3%
................................
$12,282,337,358
Other
Assets,
less
Liabilities
0.7%
............................................
83,409,699
Net
Assets
100.0%
...........................................................
$12,365,747,057
a
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
b
The
coupon
rate
shown
represents
the
rate
at
period
end.
c
See
Note
1(b)
regarding
repurchase
agreement.
The
Money
Market
Portfolios
Financial
Statements
Statement
of
Assets
and
Liabilities
December
31,
2020
(unaudited)
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
5
The
U.S.
Government
Money
Market
Portfolio
Assets:
Investments
in
unaffiliated
securities,
at
amortized
cost
..............................................
$10,866,337,358
Unaffiliated
repurchase
agreements,
at
value
and
cost
...............................................
1,416,000,000
Cash
....................................................................................
84,008,087
Receivables:
Capital
shares
sold
........................................................................
92,311,087
Interest
.................................................................................
785,055
Total
assets
..........................................................................
12,459,441,587
Liabilities:
Payables:
Capital
shares
redeemed
...................................................................
92,396,272
Management
fees
.........................................................................
1,135,675
Distributions
to
shareholders
.................................................................
11,346
Accrued
expenses
and
other
liabilities
...........................................................
151,237
Total
liabilities
.........................................................................
93,694,530
Net
assets,
at
value
.................................................................
$12,365,747,057
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$12,365,747,609
Total
distributable
earnings
(losses)
.............................................................
(552)
Net
assets,
at
value
.................................................................
$12,365,747,057
Shares
outstanding
.........................................................................
12,365,749,209
Net
asset
value
per
share
....................................................................
$1.00
The
Money
Market
Portfolios
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
December
31,
2020
(unaudited)
franklintempleton.com
Semiannual
Report
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
6
The
U.S.
Government
Money
Market
Portfolio
Investment
income:
Interest:
Unaffiliated
issuers
........................................................................
$8,640,133
Expenses:
Management
fees
(Note
3
a
)
...................................................................
9,916,310
Custodian
fees
(Note
4
)
......................................................................
45,658
Reports
to
shareholders
......................................................................
3,239
Registration
and
filing
fees
....................................................................
392
Professional
fees
...........................................................................
70,700
Other
....................................................................................
93,256
Total
expenses
.........................................................................
10,129,555
Expense
reductions
(Note
4
)
...............................................................
(45,331)
Expenses
waived/paid
by
affiliates
(N
ote
3
and
3c)
...............................................
(1,653,760)
Net
expenses
.........................................................................
8,430,464
Net
investment
income
................................................................
209,669
Net
realized
gain
(loss)
from:
Investments:
Unaffiliated
issuers
......................................................................
(552)
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$209,117
The
Money
Market
Portfolios
Financial
Statements
Statements
of
Changes
in
Net
Assets
franklintempleton.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
7
The
U.S.
Government
Money
Market
Portfolio
Six
Months
Ended
December
31,
2020
(unaudited)
Year
Ended
June
30,
2020
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$209,669
$255,196,429
Net
realized
gain
(loss)
.................................................
(552)
101,900
Net
increase
(decrease)
in
net
assets
resulting
from
operations
................
209,117
255,298,329
Distributions
to
shareholders:
..............................................
(306,200)
(255,196,429)
Capital
share
transactions
(Note
2
)
..........................................
(6,016,131,669)
(4,836,667,251)
Net
increase
(decrease)
in
net
assets
...................................
(6,016,228,752)
(4,836,565,351)
Net
assets:
Beginning
of
period
.....................................................
18,381,975,809
23,218,541,160
End
of
period
..........................................................
$12,365,747,057
$18,381,975,809
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
The
U.S.
Government
Money
Market
Portfolio
8
franklintempleton.com
Semiannual
Report
1.
Organization
and
Significant
Accounting
Policies
The
Money
Market
Portfolios
(Trust)
is
registered
under
the
Investment
Company
Act
of
1940
(1940
Act)
as
an
open-
end
management
investment
company,
consisting
of
one
portfolio The
U.S.
Government
Money
Market
Portfolio
(Portfolio)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP).
The
shares
of
the
Portfolio
are
issued
in
private
placements
and
are
exempt
from
registration
under
the
Securities
Act
of
1933.
The
following
summarizes
the
Portfolio's
significant
accounting
policies.
a.
Financial
Instrument
Valuation
Securities
are
valued
at
amortized
cost,
which
approximates
fair
value.
Amortized
cost
is
an
income-based
approach
which
involves
valuing
an
instrument
at
its
cost
and
thereafter
assuming
a
constant
amortization
to
maturity
of
any
discount
or
premium.
Under
compliance
policies
and
procedures
approved
by
the
Portfolio's
Board
of
Trustees
(the
Board),
Franklin
Templeton
Services,
LLC,
an
affiliate
of
the
investment
manager,
has
responsibility
for
oversight
of
valuation,
including
leading
the
cross-functional
Valuation
Committee
(VC).
b.
Repurchase
Agreements
The
Portfolio
enters
into
repurchase
agreements,
which
are
accounted
for
as
a
loan
by
the
Portfolio
to
the
seller,
collateralized
by
securities
which
are
delivered
to
the
Portfolio's
custodian.
The
fair
value,
including
accrued
interest,
of
the
initial
collateralization
is
required
to
be
at
least
102%
(if
the
counterparty
is
a
bank
or
broker-dealer)
or
100%
(if
the
counterparty
is
the
Federal
Reserve
Bank
of
New
York)
of
the
dollar
amount
invested
by
the
Portfolio,
with
the
value
of
the
underlying
securities
marked
to
market
daily
to
maintain
coverage
of
at
least
100%.
Repurchase
agreements
are
subject
to
the
terms
of
Master
Repurchase
Agreements
(MRAs)
with
approved
counterparties
(sellers).
The
MRAs
contain
various
provisions,
including
but
not
limited
to
events
of
default
and
maintenance
of
collateral
for
repurchase
agreements.
In
the
event
of
default
by
either
the
seller
or
the
Portfolio,
certain
MRAs
may
permit
the
non-defaulting
party
to
net
and
close-out
all
transactions,
if
any,
traded
under
such
agreements.
The
Portfolio
may
sell
securities
it
holds
as
collateral
and
apply
the
proceeds
towards
the
repurchase
price
and
any
other
amounts
owed
by
the
seller
to
the
Portfolio
in
the
event
of
default
by
the
seller.
This
could
involve
costs
or
delays
in
addition
to
a
loss
on
the
securities
if
their
value
falls
below
the
repurchase
price
owed
by
the
seller.
All
repurchase
agreements
held
by
the
Portfolio
at
period
end,
as
indicated
in
the
Statement
of
Investments,
had
been
entered
into
on
December
31,
2020.
c.
Income
Taxes
It
is the Portfolio's
policy
to
qualify
as
a
regulated
investment
company
under
the
Internal
Revenue
Code. The Portfolio
intends
to
distribute
to
shareholders
substantially
all
of
its
taxable
income
and
net
realized
gains
to
relieve
it
from
federal
income
and excise
taxes.
As
a
result,
no
provision
for
U.S.
federal
income
taxes
is
required.
The
Portfolio
may
recognize
an
income
tax
liability
related
to
its
uncertain
tax
positions
under
U.S.
GAAP
when
the
uncertain
tax
position
has
a
less
than
50%
probability
that
it
will
be
sustained
upon
examination
by
the
tax
authorities
based
on
its
technical
merits.
As
of
December
31,
2020,
the
Portfolio
has
determined
that
no
tax
liability
is
required
in
its
financial
statements
related
to
uncertain
tax
positions
for
any
open
tax
years
(or
expected
to
be
taken
in
future
tax
years).
Open
tax
years
are
those
that
remain
subject
to
examination
and
are
based
on
the
statute
of
limitations
in
each
jurisdiction
in
which
the
Portfolio
invests.
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
Security
transactions
are
accounted
for
on
trade
date.
Realized
gains
and
losses
on
security
transactions
are
determined
on
a
specific
identification
basis.
Interest
income
and
estimated
expenses
are
accrued
daily.
Amortization
of
premium
and
accretion
of
discount
on
debt
securities
are
included
in
interest
income.
Dividends
from
net
investment
income
are
normally
declared
daily;
these
dividends
may
be
reinvested
or
paid
monthly
to
shareholders.
Distributions
from
net realized
capital
gains
and
other
distributions,
if
any,
are
recorded
on
the
ex-dividend
date.
Distributable
earnings
are
determined
according
to
income
tax
regulations
(tax
basis)
and
may
differ
from
earnings
recorded
in
accordance
with
U.S.
GAAP.
These
differences
may
be
permanent
or
temporary.
Permanent
differences
are
reclassified
among
capital
accounts
to
reflect
their
tax
character.
These
reclassifications
have
no
impact
on
net
assets
or
the
results
of
operations.
Temporary
differences
are
not
reclassified,
as
they
may
reverse
in
subsequent
periods.
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
9
franklintempleton.com
Semiannual
Report
The
U.S.
Government
Money
Market
Portfolio
(continued)
e.
Accounting
Estimates
The
preparation
of
financial
statements
in
accordance
with
U.S.
GAAP
requires
management
to
make
estimates
and
assumptions
that
affect
the
reported
amounts
of
assets
and
liabilities
at
the
date
of
the
financial
statements
and
the
amounts
of
income
and
expenses
during
the
reporting
period.
Actual
results
could
differ
from
those
estimates.
f.
Guarantees
and
Indemnifications
Under
the
Trust's
organizational
documents,
its
officers
and
trustees
are
indemnified
by
the
Trust
against
certain
liabilities
arising
out
of
the
performance
of
their
duties
to
the
Trust.
Additionally,
in
the
normal
course
of
business,
the
Trust, on
behalf
of
the
Portfolio,
enters
into
contracts
with
service
providers
that
contain
general
indemnification
clauses.
The
Trust's
maximum
exposure
under
these
arrangements
is
unknown
as
this
would
involve
future
claims
that
may
be
made
against
the
Trust
that
have
not
yet
occurred.
Currently,
the
Trust
expects
the
risk
of
loss
to
be
remote.
2.
Shares
of
Beneficial
Interest
At
December
31,
2020,
there
were
an
unlimited
number
of
shares
authorized
(without
par
value).
Transactions
in
the
Portfolio’s
shares
at
$1.00
per
share
were
as
follows:
3.
Transactions
with
Affiliates
Franklin
Resources,
Inc.
is
the
holding
company
for
various
subsidiaries
that
together
are
referred
to
as
Franklin
Templeton.
Certain
officers
and
trustees
of
the
Trust
are
also
officers,
directors
and/or
trustees
of
Franklin
U.S
Government
Money
Portfolio,
Institutional
Fiduciary
Trust,
and
of
the
following
subsidiaries:
a.
Management
Fees
The
Portfolio
pays
an
investment
management
fee
to
Advisers
of
0.15%
per
year
of
the
average
daily
net
assets
of
the
Portfolio.
b.
Transfer
Agent
Fees
Investor
Services,
under
terms
of
an
agreement,
performs
shareholder
servicing
for
the
Portfolio
and
is
not
paid
by
the
Portfolio
for
the
services.
Six
Months
Ended
December
31,
2020
Year
Ended
June
30,
2020
Shares
sold
...................................
$15,856,454,377
$37,539,422,141
Shares
issued
in
reinvestment
of
distributions
..........
240,114
255,164,095
Shares
redeemed
...............................
(21,872,826,160)
(42,631,253,487)
Net
increase
(decrease)
..........................
$(6,016,131,669)
$(4,836,667,251)
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
1.
Organization
and
Significant
Accounting
Policies
(continued)
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
10
franklintempleton.com
Semiannual
Report
The
U.S.
Government
Money
Market
Portfolio
(continued)
c.
Other
Affiliated
Transactions
At
December
31,
2020,
the
shares
of
the
Portfolio
were
owned
by
the
following
investment
companies:
4.
Expense
Offset
Arrangement
The Portfolio has
entered
into
an
arrangement
with
its
custodian
whereby
credits
realized
as
a
result
of
uninvested
cash
balances
are
used
to
reduce
a
portion
of
the
Portfolio's
custodian
expenses.
During
the
period
ended
December
31,
2020,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
5.
Income
Taxes
At
December
31,
2020,
the
cost
of
investments
for
book
and
income
tax
purposes
was
the
same.
6. Novel
Coronavirus
Pandemic
The
global
outbreak
of
the
novel
coronavirus
disease,
known
as
COVID-19, has
caused
adverse
effects
on
many
companies,
sectors,
nations,
regions
and
the
markets
in
general, and
may
continue for
an unpredictable duration.
The
effects
of
this
pandemic
may
materially
impact
the
value
and
performance
of
the Fund, its ability
to
buy
and
sell
fund
investments
at
appropriate
valuations
and its ability
to
achieve its investment
objectives.
7.
Fair
Value
Measurements
The
Fund
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Fund's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Fund's financial
instruments
and
are
summarized
in
the
following
fair
value
hierarchy:
Level
1
–
quoted
prices
in
active
markets
for
identical
financial
instruments
Level
2
–
other
significant
observable
inputs
(including
quoted
prices
for
similar
financial
instruments,
interest
rates,
prepayment
speed,
credit
risk,
etc.)
Level
3
–
significant
unobservable
inputs
(including
the
Fund's
own
assumptions
in
determining
the
fair
value
of
financial
instruments)
Shares
Percentage
of
Outstanding
Shares
a
Institutional
Fiduciary
Trust—Money
Market
Portfolio
............................
8,559,123,625
69.2%
Franklin
U.S.
Government
Money
Fund
......................................
3,806,625,584
30.8%
12,365,749,209
100.0%
3.
Transactions
with
Affiliates
(continued)
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
11
franklintempleton.com
Semiannual
Report
The
U.S.
Government
Money
Market
Portfolio
(continued)
The
input
levels
are
not
necessarily
an
indication
of
the
risk
or
liquidity
associated
with
financial
instruments
at
that
level.
Money
market
securities
may
be
valued
using
amortized
cost,
in
accordance
with
the
1940
Act.
Generally,
amortized
cost
reflects
the
current
fair
value
of
a
security,
but
since
the
value
is
not
obtained
from
a
quoted
price
in
an
active
market,
such
financial
instruments
were
valued
using
Level
2
inputs.
At
December
31,
2020,
all
of
the
Portfolio’s
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
8.
Subsequent
Events
The
Portfolio
has
evaluated
subsequent
events
through
the
issuance
of
the
financial
statements
and
determined
that
no
events
have
occurred
that
require
disclosure.
Abbreviations
Selected
Portfolio
FFCB
Federal
Farm
Credit
Banks
Funding
Corp.
FHLB
Federal
Home
Loan
Banks
FHLMC
Federal
Home
Loan
Mortgage
Corp.
FNMA
Federal
National
Mortgage
Association
FRN
Floating
Rate
Note
7.
Fair
Value
Measurements
(continued)
The
Money
Market
Portfolios
Tax
Information
(unaudited)
12
franklintempleton.com
Semiannual
Report
The
U.S.
Government
Money
Market
Portfolio
Under
Section
163(j)
of
the
Internal
Revenue
Code,
the
Portfolio
hereby
reports
100%
of
the
ordinary
income
dividends
as
income
qualifying
as
163(j)
interest
dividends
for
the
fiscal
year
ended
June
30,
2020.
Item 2. Code of Ethics.
(a) The Registrant has adopted a code of ethics that applies to its principal executive officers and principal financial and accounting officer.
(c) N/A
(d) N/A
(f) Pursuant to Item 13(a)(1), the Registrant is attaching as an exhibit a copy of its code of ethics that applies to its principal executive officers and principal financial and accounting officer.
Item 3. Audit Committee Financial Expert.
(a)(1) The Registrant has an audit committee financial expert serving on its audit committee.
(2) The audit committee financial expert is Mary C. Choksi and she is "independent" as defined under the relevant Securities and Exchange Commission Rules and Releases.
Item 4.
Principal Accountant Fees and Services. N/A
Item 5. Audit Committee
of Listed Registrants. N/A
Item 6. Schedule of Investments. N/A
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies. N/A
Item 8. Portfolio Managers of Closed-End Management Investment Companies. N/A
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and
Affiliated Purchasers. N/A
Item 10. Submission of Matters to a Vote of Security Holders.
There have been no changes to the procedures by which shareholders may recommend nominees to the Registrant's Board of Trustees that would require disclosure herein.
Item 11. Controls and Procedures.
(a) Evaluation of Disclosure Controls and Procedures.
The Registrant maintains disclosure controls and procedures that are designed to provide reasonable assurance that information required to be disclosed in the Registrant’s filings under the Securities Exchange Act of 1934, as amended, and the Investment Company Act of 1940 is recorded, processed, summarized and reported within the periods specified in the rules and forms of the Securities and Exchange Commission. Such information is accumulated and communicated to the Registrant’s management, including its principal executive officer and principal financial officer, as appropriate, to allow timely decisions regarding required disclosure. The Registrant’s management, including the principal executive officer and the principal financial officer, recognizes that any set of controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives.
Within 90 days prior to the filing date of this Shareholder Report on Form N-CSR, the Registrant had carried out an evaluation, under the supervision and with the participation of the Registrant’s management, including the Registrant’s principal executive officer and the Registrant’s principal financial officer, of the effectiveness of the design and operation of the Registrant’s disclosure controls and procedures. Based on such evaluation, the Registrant’s principal executive officer and principal financial officer concluded that the Registrant’s disclosure controls and procedures are effective.
(b) Changes in Internal Controls.
During the period covered by this report, a third-party service provider commenced performing certain accounting and administrative services for the Registrant that are subject to Franklin Templeton’s oversight.
Item 12. Disclosure of Securities Lending Activities for Closed-End Management Investment Company. N/A
Item 13. Exhibits.
(a)(1) Code of Ethics
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Gaston Gardey, Chief Financial Officer and Chief Accounting Officer
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.
THE MONEY MARKET PORTFOLIOS
By __ S\MATTHEW T. HINKLE_______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date February 26, 2021
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\MATTHEW T. HINKLE______________________
Matthew T. Hinkle
Chief Executive Officer - Finance and Administration
Date February 26, 2021
By ___S\
Robert G. Kubilis ______________________
Robert G. Kubilis
Chief Financial Officer and Chief Accounting Officer
Date February 26, 2021