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)
Alison Baur, 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: 12/31/22
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.)
Include a copy of each notice transmitted to stockholders in reliance on Rule 30e-3 under the Act (17 CFR 270.30e-3) that contains disclosures specified by paragraph (c)(3) of that rule.
Not Applicable
.
Your
Fund’s
Expenses
The
U.S.
Government
Money
Market
Portfolio
1
ftinstitutional.com
Semiannual
Report
As
a
Fund
shareholder,
you
can
incur
two
types
of
costs:
(1)
transaction
costs,
including
sales
charges
(loads)
on
Fund
purchases
and
redemptions,
if
applicable;
and
(2)
ongoing
Fund
costs,
including
management
fees,
distribution
and
service
(12b-1)
fees,
if
applicable,
and
other
Fund
expenses.
All
mutual
funds
have
ongoing
costs,
sometimes
referred
to
as
operating
expenses.
The
table
below
shows
ongoing
costs
of
investing
in
the
Fund
and
can
help
you
understand
these
costs
and
compare
them
with
those
of
other
mutual
funds.
The
table
assumes
a
$1,000
investment
held
for
the
six
months
indicated.
Actual
Fund
Expenses
The
table
below
provides
information
about
actual
account
values
and
actual
expenses
in
the
columns
under
the
heading
“Actual.”
In
these
columns
the
Fund’s
actual
return,
which
includes
the
effect
of
Fund
expenses,
is
used
to
calculate
the
“Ending
Account
Value”.
You
can
estimate
the
expenses
you
paid
during
the
period
by
following
these
steps
(
of
course,
your
account
value
and
expenses
will
differ
from
those
in
this
illustration
):
Divide
your
account
value
by
$1,000
(
if
your
account
had
an
$8,600
value,
then
$8,600
÷
$1,000
=
8.6
).
Then
multiply
the
result
by
the
number
in
the
row
for
your
class
of
shares
under
the
headings
“Actual”
and
“Expenses
Paid
During
Period”
(
if
Actual
Expenses
Paid
During
Period
were
$7.50,
then
8.6
x
$7.50
=
$64.50
).
In
this
illustration,
the
actual
expenses
paid
this
period
are
$64.50.
Hypothetical
Example
for
Comparison
with
Other
Funds
Under
the
heading
“Hypothetical”
in
the
table,
information
is
provided
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.
This
information
may
not
be
used
to
estimate
the
actual
ending
account
balance
or
expenses
you
paid
for
the
period,
but
it
can
help
you
compare
ongoing
costs
of
investing
in
the
Fund
with
those
of
other
funds.
To
do
so,
compare
this
5%
hypothetical
example
for
the
class
of
shares
you
hold
with
the
5%
hypothetical
examples
that
appear
in
the
shareholder
reports
of
other
funds.
Please
note
that
expenses
shown
in
the
table
are
meant
to
highlight
ongoing
costs
and
do
not
reflect
any
transactional
costs.
Therefore,
information
under
the
heading
“Hypothetical”
is
useful
in
comparing
ongoing
costs
only,
and
will
not
help
you
compare
total
costs
of
owning
different
funds.
In
addition,
if
transactional
costs
were
included,
your
total
costs
would
have
been
higher.
1.
Expenses
are
equal
to
the
annualized
expense
ratio
for
the
six-month
period
as
indicated
above—in
the
far
right
column—multiplied
by
the
simple
average
account
value
over
the
period
indicated,
and
then
multiplied
by
184/365
to
reflect
the
one-half
year
period.
2.
Reflects
expenses
after
fee
waivers
and
expense
reimbursements.
Actual
(actual
return
after
expenses)
Hypothetical
(5%
annual
return
before
expenses)
Beginning
Account
Value
7/1/22
Ending
Account
Value
12/31/22
Expenses
Paid
During
Period
7/1/22–12/31/22
1,2
Ending
Account
Value
12/31/22
Expenses
Paid
During
Period
7/1/22–12/31/22
1,2
a
Annualized
Expense
Ratio
2
$1,000
$1,013.60
$0.78
$1,024.43
$0.78
0.15%
The
Money
Market
Portfolios
Financial
Highlights
The
U.S.
Government
Money
Market
Portfolio
ftinstitutional.com
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The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
2
a
Six
Months
Ended
December
31,
2022
(unaudited)
Year
Ended
June
30,
2022
2021
2020
2019
2018
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
..............
0.013
0.001
—
a
0.013
0.021
0.011
Net
realized
and
unrealized
gains
(losses)
a
........................
—
—
(—)
—
—
(—)
Total
from
investment
operations
........
0.013
0.001
—
a
0.013
0.021
0.011
Less
distributions
from:
Net
investment
income
..............
(0.013)
(0.001)
(—)
a
(0.013)
(0.021)
(0.011)
Net
asset
value,
end
of
period
..........
$1.00
$1.00
$1.00
$1.00
$1.00
$1.00
Total
return
b
.......................
1.36%
0.14%
0.01%
1.29%
2.10%
1.15%
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
..........................
0.15%
0.10%
0.09%
0.15%
0.15%
0.15%
Net
investment
income
...............
2.64%
0.13%
—%
e
1.33%
2.09%
1.15%
Supplemental
data
Net
assets,
end
of
period
(000’s)
........
$11,281,243
$11,102,314
$11,811,420
$18,381,976
$23,218,541
$23,700,037
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
Schedule
of
Investments
(unaudited),
December
31,
2022
The
U.S.
Government
Money
Market
Portfolio
ftinstitutional.com
The
accompanying
notes
are
an
integral
part
of
these
financial
statements.
Semiannual
Report
3
a
a
Principal
Amount
a
Value
U.S.
Government
and
Agency
Securities
68.0%
a
FFCB
,
FRN,
4.34%,
(SOFR
+
0.04%),
3/10/23
.................................
$
14,000,000
$
14,000,000
FRN,
4.31%,
(SOFR
+
0.01%),
6/07/23
.................................
65,000,000
65,000,000
FRN,
4.355%,
(SOFR
+
0.055%),
8/03/23
...............................
70,000,000
69,998,967
FRN,
4.34%,
(SOFR
+
0.04%),
2/05/24
.................................
10,000,000
10,000,000
FRN,
4.34%,
(SOFR
+
0.04%),
3/18/24
.................................
65,000,000
65,000,000
FRN,
4.35%,
(SOFR
+
0.05%),
5/09/24
.................................
54,900,000
54,900,000
FRN,
4.34%,
(SOFR
+
0.04%),
5/15/24
.................................
60,000,000
60,000,000
FRN,
4.345%,
(SOFR
+
0.045%),
5/24/24
...............................
25,000,000
25,000,000
FRN,
4.35%,
(SOFR
+
0.05%),
6/26/24
.................................
100,000,000
100,000,000
FRN,
4.395%,
(SOFR
+
0.095%),
7/18/24
...............................
20,000,000
20,000,000
FRN,
4.49%,
(SOFR
+
0.19%),
11/25/24
.................................
30,000,000
30,000,000
FRN,
4.5%,
(SOFR
+
0.2%),
12/05/24
..................................
10,000,000
10,000,000
523,898,967
FHLB
,
b
1/04/23
.........................................................
252,100,000
252,022,824
b
1/06/23
.........................................................
211,800,000
211,692,053
b
1/11/23
.........................................................
180,000,000
179,801,000
b
1/12/23
.........................................................
73,130,000
73,038,831
b
1/18/23
.........................................................
332,900,000
332,271,044
b
1/20/23
.........................................................
200,000,000
199,579,889
b
1/25/23
.........................................................
392,000,000
390,932,797
b
1/26/23
.........................................................
20,657,000
20,598,185
b
2/01/23
.........................................................
220,000,000
219,222,761
b
2/03/23
.........................................................
44,900,000
44,731,045
b
2/07/23
.........................................................
100,000,000
99,573,986
b
2/10/23
.........................................................
350,000,000
348,365,778
b
2/15/23
.........................................................
200,000,000
198,946,250
b
2/17/23
.........................................................
206,850,000
205,705,478
b
2/22/23
.........................................................
388,000,000
385,567,758
b
2/24/23
.........................................................
143,000,000
142,061,777
b
3/01/23
.........................................................
197,000,000
195,589,743
b
3/14/23
.........................................................
45,793,000
45,390,021
b
3/15/23
.........................................................
34,800,000
34,489,507
b
3/17/23
.........................................................
25,000,000
24,770,312
b
3/29/23
.........................................................
193,000,000
190,908,121
b
3/31/23
.........................................................
195,000,000
192,841,231
b
6/14/23
.........................................................
11,000,000
10,769,489
a
FRN,
4.33%,
(SOFR
+
0.03%),
1/19/23
.................................
145,000,000
145,000,000
a
FRN,
4.32%,
(SOFR
+
0.02%),
1/23/23
.................................
45,000,000
45,000,000
a
FRN,
4.34%,
(SOFR
+
0.04%),
2/10/23
.................................
94,900,000
94,900,000
a
FRN,
4.345%,
(SOFR
+
0.045%),
2/23/23
...............................
130,000,000
130,000,000
a
FRN,
4.33%,
(SOFR
+
0.03%),
3/21/23
.................................
112,000,000
112,000,000
a
FRN,
4.37%,
(SOFR
+
0.07%),
3/27/23
.................................
7,000,000
7,000,000
a
FRN,
4.34%,
(SOFR
+
0.04%),
6/05/23
.................................
94,000,000
94,000,000
a
FRN,
4.4%,
(SOFR
+
0.1%),
9/21/23
...................................
100,000,000
100,000,000
4,726,769,880
b
U.S.
Treasury
Bills
,
1/03/23
.........................................................
160,000,000
159,967,694
1/10/23
.........................................................
308,005,000
307,712,295
1/17/23
.........................................................
245,000,000
244,571,867
1/19/23
.........................................................
94,950,000
94,765,685
1/24/23
.........................................................
139,950,000
139,582,068
1/26/23
.........................................................
90,000,000
89,750,000
2/02/23
.........................................................
90,000,000
89,674,400
2/09/23
.........................................................
189,900,000
189,052,413
The
Money
Market
Portfolios
Schedule
of
Investments
(unaudited)
The
U.S.
Government
Money
Market
Portfolio
(continued)
ftinstitutional.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
U.S.
Government
and
Agency
Securities
(continued)
b
U.S.
Treasury
Bills,
(continued)
2/16/23
.........................................................
$
244,950,000
$
243,939,575
2/23/23
.........................................................
95,000,000
94,409,786
3/02/23
.........................................................
99,900,000
99,186,547
3/16/23
.........................................................
94,950,000
94,273,719
3/21/23
.........................................................
100,000,000
99,052,000
3/30/23
.........................................................
293,000,000
290,006,656
4/18/23
.........................................................
94,000,000
92,759,513
6/15/23
.........................................................
95,000,000
92,984,021
2,421,688,239
Total
U.S.
Government
and
Agency
Securities
(Cost
$7,672,357,086)
..............
7,672,357,086
c
Repurchase
Agreements
31.5%
Bank
of
New
York
Mellon
Corp.
(The),
4.22%,
1/03/23
(Maturity
Value
$400,187,556)
Collateralized
by
U.S.
Treasury
Notes,
1.625%
-
3.875%,
11/30/27
-
5/15/31;
and
U.S.
Treasury
Note,
Index
Linked,
0.125%,
1/15/30
(valued
at
$408,000,008)
.....
400,000,000
400,000,000
BNP
Paribas
Securities
Corp.,
4%,
1/03/23
(Maturity
Value
$725,322,222)
Collateralized
by
U.S.
Treasury
Note,
0.5%
-
2%,
2/15/25
-
3/31/25
(valued
at
$740,679,321)
....................................................
725,000,000
725,000,000
Deutsche
Bank
Securities,
Inc.,
4.24%,
1/03/23
(Maturity
Value
$78,036,747)
Collateralized
by
U.S.
Treasury
Note,
2.375%,
8/15/24
(valued
at
$79,560,076)
...
78,000,000
78,000,000
Federal
Reserve
Bank
of
New
York,
4.3%,
1/03/23
(Maturity
Value
$2,276,086,944)
Collateralized
by
U.S.
Treasury
Notes,
0.375%
-
2%,
5/31/24
-
8/15/24
(valued
at
$2,276,086,978)
...................................................
2,275,000,000
2,275,000,000
Goldman
Sachs
&
Co.
LLC,
4.14%,
1/03/23
(Maturity
Value
$75,034,500)
Collateralized
by
U.S.
Treasury
Note,
2.625%,
5/31/27
(valued
at
$76,652,097)
...
75,000,000
75,000,000
HSBC
Securities
USA,
Inc.,
4.25%,
1/03/23
(Maturity
Value
$5,002,361)
Collateralized
by
U.S.
Government
Agency
Securities,
0%,
1/04/27;
and
U.S.
Treasury
Bond,
3.125%,
5/15/48
(valued
at
$5,100,054)
.....................
5,000,000
5,000,000
Total
Repurchase
Agreements
(Cost
$3,558,000,000)
............................
3,558,000,000
Total
Short
Term
Investments
(Cost
$11,230,357,086
)
............................
11,230,357,086
a
Total
Investments
(Cost
$11,230,357,086)
99.5%
.................................
$11,230,357,086
Other
Assets,
less
Liabilities
0.5%
.............................................
50,885,952
Net
Assets
100.0%
...........................................................
$11,281,243,038
a
The
coupon
rate
shown
represents
the
rate
at
period
end.
b
The
security
was
issued
on
a
discount
basis
with
no
stated
coupon
rate.
c
See
Note
1(b)
regarding
repurchase
agreement.
The
Money
Market
Portfolios
Financial
Statements
Statement
of
Assets
and
Liabilities
December
31,
2022
(unaudited)
ftinstitutional.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
...............................................
$7,672,357,086
Unaffiliated
repurchase
agreements,
at
value
and
cost
...............................................
3,558,000,000
Cash
....................................................................................
46,738,154
Receivables:
Interest
.................................................................................
5,802,140
Total
assets
..........................................................................
11,282,897,380
Liabilities:
Payables:
Management
fees
.........................................................................
1,483,360
Distributions
to
shareholders
.................................................................
123
Accrued
expenses
and
other
liabilities
...........................................................
170,859
Total
liabilities
.........................................................................
1,654,342
Net
assets,
at
value
.................................................................
$11,281,243,038
Net
assets
consist
of:
Paid-in
capital
.............................................................................
$11,281,243,472
Total
distributable
earnings
(losses)
.............................................................
(434)
Net
assets,
at
value
.................................................................
$11,281,243,038
Shares
outstanding
.........................................................................
11,281,233,624
Net
asset
value
per
share
....................................................................
$1.00
The
Money
Market
Portfolios
Financial
Statements
Statement
of
Operations
for
the
six
months
ended
December
31,
2022
(unaudited)
ftinstitutional.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
........................................................................
$163,390,188
Expenses:
Management
fees
(Note
3
a
)
...................................................................
8,754,665
Custodian
fees
(Note
4
)
......................................................................
18,346
Reports
to
shareholders
fees
..................................................................
1,401
Registration
and
filing
fees
....................................................................
31
Professional
fees
...........................................................................
44,003
Trustees'
fees
and
expenses
..................................................................
67,570
Other
....................................................................................
74,965
Total
expenses
.........................................................................
8,960,981
Expense
reductions
(Note
4
)
...............................................................
(5,488)
Net
expenses
.........................................................................
8,955,493
Net
investment
income
................................................................
154,434,695
Net
increase
(decrease)
in
net
assets
resulting
from
operations
..........................................
$154,434,695
The
Money
Market
Portfolios
Financial
Statements
Statements
of
Changes
in
Net
Assets
ftinstitutional.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,
2022
(unaudited)
Year
Ended
June
30,
2022
Increase
(decrease)
in
net
assets:
Operations:
Net
investment
income
.................................................
$154,434,695
$16,128,521
Distributions
to
shareholders
..............................................
(154,434,696)
(16,128,521)
Capital
share
transactions
(Note
2
)
..........................................
178,929,343
(709,105,982)
Net
increase
(decrease)
in
net
assets
...................................
178,929,342
(709,105,982)
Net
assets:
Beginning
of
period
.....................................................
11,102,313,696
11,811,419,678
End
of
period
..........................................................
$11,281,243,038
$11,102,313,696
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
The
U.S.
Government
Money
Market
Portfolio
8
ftinstitutional.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).
The
Trust
follows
the
accounting
and
reporting
guidance
in
Financial
Accounting
Standards
Board
(FASB)
Accounting
Standard
Codification
Topic
946,
Financial
Services
–
Investment
Companies
(ASC
946)
and
applies
the
specialized
accounting
and
reporting
guidance
in
U.S.
Generally
Accepted
Accounting
Principles
(U.S.
GAAP),
including,
but
not
limited
to,
ASC
946.
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),
the
Board
has
designated
the
Portfolio’s
investment
manager
as
the
valuation
designee
and
has
responsibility
for
oversight
of
valuation.
The
investment
manager
is
assisted
by
the
Fund’s
administrator
in
performing
this
responsibility,
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
Schedule
of
Investments,
had
been
entered
into
on
December
30,
2022.
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,
2022,
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
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
9
ftinstitutional.com
Semiannual
Report
The
U.S.
Government
Money
Market
Portfolio
(continued)
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.
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,
2022,
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
Fund,
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,
2022
Year
Ended
June
30,
2022
Shares
sold
...................................
$13,272,910,964
$31,667,180,822
Shares
issued
in
reinvestment
of
distributions
..........
154,468,950
16,125,918
Shares
redeemed
...............................
(13,248,450,571)
(32,392,412,722)
Net
increase
(decrease)
..........................
$178,929,343
$(709,105,982)
Subsidiary
Affiliation
Franklin
Advisers,
Inc.
(Advisers)
Investment
manager
Franklin
Templeton
Investor
Services,
LLC
(Investor
Services)
Transfer
agent
1.
Organization
and
Significant
Accounting
Policies
(continued)
d.
Security
Transactions,
Investment
Income,
Expenses
and
Distributions
(continued)
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
10
ftinstitutional.com
Semiannual
Report
The
U.S.
Government
Money
Market
Portfolio
(continued)
c.
Waiver
and
Expense
Reimbursements
In
efforts
to
maintain
a
minimum
1
basis
point
annualized
yield,
Advisers
and
Investor
Services
have
voluntarily
agreed
to
waive
or
limit
their
respective
fees,
assume
as
their
own
expense
certain
expenses
otherwise
payable
by
the
Fund
and
if
necessary,
make
a
capital
infusion
into
the
Fund.
These
waivers,
expense
reimbursements
and
capital
infusions
are
voluntary
and
may
be
modified
or
discontinued
by
Advisers
or
Investor
Services
at
any
time,
and
without
further
notice.
Total
expenses
waived
or
paid
are
not
subject
to
reimbursement
by
the
Fund
subsequent
to
the
Fund's
fiscal
year
end.
There
is
no
guarantee
that
the
Fund
will
be
able
to
maintain
a
1
basis
point
yield.
There
were
no
expenses
waived
during
the
period
ended
December
31,
2022.
d.
Other
Affiliated
Transactions
At
December
31,
2022,
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,
2022,
the
custodian
fees
were
reduced
as
noted
in
the
Statement
of
Operations.
5.
Income
Taxes
For
tax
purposes,
capital
losses
may
be
carried
over
to
offset
future
capital
gains.
At
June
30,
2022,
the
capital
loss
carryforwards
were
as
follows:
At
December
31,
2022,
the
cost
of
investments
for
book
and
income
tax
purposes
was
the
same.
6.
Geopolitical
Risk
On
February
24,
2022,
Russia
engaged
in
military
actions
in
the
sovereign
territory
of
Ukraine.
The
current
political
and
financial
uncertainty
surrounding
Russia
and
Ukraine
may
increase
market
volatility
and
the
economic
risk
of
investing
in
securities
in
these
countries
and
may
also
cause
uncertainty
for
the
global
economy
and
broader
financial
markets.
The
ultimate
fallout
and
long-term
impact
from
these
events
are
not
known.
The
Fund
will
continue
to
assess
the
impact
on
valuations
and
liquidity
and
will
take
any
potential
actions
needed
in
accordance
with
procedures
approved
by
the
Board.
Shares
Percentage
of
Outstanding
Shares
Institutional
Fiduciary
Trust—Money
Market
Portfolio
............................
6,297,178,815
55.8%
Franklin
U.S.
Government
Money
Fund
......................................
4,984,066,257
44.2%
11,281,245,072
100.0%
Capital
loss
carryforwards
not
subject
to
expiration:
Short
term
................................................................................
$433
3.
Transactions
with
Affiliates
(continued)
The
Money
Market
Portfolios
Notes
to
Financial
Statements
(unaudited)
11
ftinstitutional.com
Semiannual
Report
The
U.S.
Government
Money
Market
Portfolio
(continued)
7.
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.
8.
Fair
Value
Measurements
The
Portfolio
follows
a
fair
value
hierarchy
that
distinguishes
between
market
data
obtained
from
independent
sources
(observable
inputs)
and
the Portfolio's
own
market
assumptions
(unobservable
inputs).
These
inputs
are
used
in
determining
the
value
of
the
Portfolio'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)
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,
2022,
all
of
the
Portfolio’s
investments
in
financial
instruments
carried
at
fair
value
were
valued
using
Level
2
inputs.
9.
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
FRN
Floating
Rate
Note
SOFR
Secured
Overnight
Financing
Rate
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.
There have been no changes in the Registrant’s internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect the internal control over financial reporting.
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 Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
(a)(2)(1) There were no written solicitations to purchase securities under Rule 23c-1 under the Act sent or given during the period covered by the report by or on behalf of the Registrant to 10 or more persons.
(a)(2)(2) There was no change in the Registrant’s independent public accountant during the period covered by the report.
(b) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 of Matthew T. Hinkle, Chief Executive Officer - Finance and Administration, and Christopher Kings, Chief Financial Officer, Chief Accounting Officer and Treasurer
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 27, 2023
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 27, 2023
By S\CHRISTOPHER KINGS______________________
Christopher Kings
Chief Financial Officer, Chief Accounting Officer and Treasurer
Date February 27, 2023