SEC Info - Fidelity Newbury Street Trust - N14EL24' On 6-12-97 Registration

12/24/2014
SECInfoFidelityNewburyStreetTrustN14EL24on6/12/97
SECInfoHome SearchMyInterestsHelp SignInPleaseSignIn
FidelityNewburyStreetTrustN14EL24on6/12/97
Asof:Thursday,6/12/97Accession#:353739710File#:33329095
7ReferencedviaAccession#: To:FidelityNewburyStreetTrust497Jon6/4/97
Go
Find
in thisentireFiling.
Show Docssearched and every"hit".
Help... Wildcards:?(anyletter),*(many).Logic:forDocs:&(and),|(or)forText:|(anywhere),"(&)"(near).BOTTOM
AsOfFilerFilingForOnAsDocs:SizeIssuerAgent
6/12/97FidelityNewburyStreetTrustN14EL2412:615KFidelityMunicipalTrust
RegistrationStatementofanOpenEndInvestmentCompany(BusinessCombination)FormN14
FilingTableofContents
Document/ExhibitDescriptionPagesSize
1:N14EL24RegistrationStatementofanOpenEndInvestment154695K
Company(BusinessCombination)
2:EX99.11MiscellaneousExhibit212K
N14EL24RegistrationStatementofanOpenEndInvestmentCompany(BusinessCombination)
DocumentTableofContents
Page
(sequential)
(alphabetic)
Top
1 1stPageFilingSubmission
" ExchangeRestrictions
AlternativeFormats(Word,etal.)
ExchangeRestrictions
AsfiledwiththeSecuritiesandExchangeCommission
onJune12,1997
RegistrationNo.278458
SECURITIESANDEXCHANGECOMMISSION
Washington,D.C.20549
FORMN14
REGISTRATIONSTATEMENT
[DownloadTable]
UNDERTHESECURITIESACTOF1933
PreEffectiveAmendmentNo.[]
http://www.secinfo.com/d12h2.85.htm
1/101
12/24/2014
PostEffectiveAmendmentNo.[]
NewburyStreetTrust
(ExactNameofRegistrantasSpecifiedinCharter)
82DevonshireSt.,Boston,MA02109
(AddressOfPrincipalExecutiveOffices)
Registrant'sTelephoneNumber(617)5637000
ArthurS.Loring,Secretary
82DevonshireStreet
Boston,MA02109
(NameandAddressofAgentforService)
ApproximateDateofProposedPublicOffering:Assoonaspracticableafter
theRegistrationStatementbecomeseffectiveundertheSecuritiesActof
1933.
TheRegistranthasregisteredanindefiniteamountofsecuritiesunderthe
SecuritiesActof1933pursuanttoSection24(f)undertheInvestment
CompanyActof1940;accordingly,nofeeispayableherewithbecauseof
relianceuponRule24f2.ARule24f2NoticefortheRegistrant'smost
recentfiscalyearendedOctober31,1996wasfiledwiththeCommissionon
December18,1996.PursuanttoRule429,thisRegistrationStatement
relatestosharespreviouslyregisteredonFormN1A.
ItisproposedthatthisfilingwillbecomeeffectiveonJuly11,1997,
pursuanttoRule488.
TREASURYFUND(FORMERLYU.S.TREASURYPORTFOLIO)
PRIMEFUND(FORMERLYMONEYMARKETPORTFOLIO)
TAXEXEMPTFUND(FORMERLYDAILYTAXEXEMPTMONEYFUND)
CONTENTSOFREGISTRATIONSTATEMENT
ThisRegistrationStatementcontainsthefollowingpapersanddocuments:
FacingPage
ContentsofRegistrationStatement
CrossReferenceSheet
SolicitationLettertoShareholders
FormsofProxyCard
NoticesofSpecialMeeting
PartAProxyStatementsandProspectuses
PartBStatementsofAdditionalInformation
PartCOtherInformation
SignaturePage
Exhibits
NEWBURYSTREETTRUST(FORMERLYDAILYTAXEXEMPTMONEYFUND):
TREASURYFUND(FORMERLYU.S.TREASURYPORTFOLIO)
FORMN14CROSSREFERENCESHEET
PARTA
[DownloadTable]
FormN14ItemNumberandCaptionProspectus/ProxyStatementCaption
1.BeginningofRegistrationStatementandOutCoverPage
sideFrontCoverPageofProspectus
[Enlarge/DownloadTable]
2.BeginningandOutsideBackCoverPageofProTableofContents
spectus
3.FeeTable,SynopsisInformationandRiskSynopsis;ComparisonofOtherPoliciesofthe
FactorsFunds;ComparisonofPrincipalRiskFactors;The
ProposedTransaction
4.InformationAbouttheTransactionsSynopsis;TheProposedTransaction;
ProspectusofTreasuryFund:DailyMoneyClass
5.InformationAbouttheRegistrantdatedMay30,1997.
Synopsis;ComparisonofOtherPoliciesofthe
Funds;ComparisonofPrincipalRiskFactors;
Miscellaneous;AdditionalInformationAbout
TreasuryFundDailyMoneyClass;Prospectusof
TreasuryFundDailyMoneyClassdatedMay30,
1997;AttachmentI.
6.InformationAbouttheCompanyBeingAcquiredCoverPage;Synopsis;ComparisonofOtherPolicies
oftheFunds;ComparisonofPrincipalRiskFactors;
Miscellaneous;ProspectusofCapitalReserves:U.S.
GovernmentPortfoliodatedNovember29,1996.
2/101
12/24/2014
7.VotingInformationVotingInformation
8.InterestofCertainPersonsandExpertsNotapplicable
9.AdditionalInformationRequiredforReofferingNotapplicable
byPersonsDeemedtobe
Underwriters
PARTB
ItemNumberandCaptionStatementofAdditionalInformationCaption
10.CoverPageCoverPage
11.TableofContentsTableofContents
12.AdditionalInformationAbouttheRegistrantProspectusandStatementofAdditional
InformationofTreasuryFundDailyMoney
ClassdatedMay30,1997
13.AdditionalInformationAbouttheCompanyBeNotapplicable
ingAcquired
14.FinancialStatementsFinancialStatementsofCapitalReserves:
U.S.GovernmentPortfoliofortheFiscal
YearEndedJuly31,1996;Financial
StatementsofU.S.TreasuryPortfolio
InitialClass(currentlyknownasTreasury
FundDailyMoneyClass)fortheFiscal
PeriodEndedOctober31,1996.
FinancialStatementsofCapitalReserves:
U.S.GovernmentPortfolioforthefiscal
periodendedJanuary31,1997;Financial
StatementsofTreasuryFundfortheFiscal
PeriodEndedApril30,1997.
ProFormaFinancialStatementsforthe
FiscalPeriodEndedJanuary31,1997.
PartCInformationrequiredtobeincludedinPartC
issetforthundertheappropriateitemso
numberedinPartCofthisRegistration
Statement.
PRIMEFUND(FORMERLYMONEYMARKETPORTFOLIO)
PARTA
[DownloadTable]
spectus
ProposedTransaction
ProspectusofPrimeFund:DailyMoneyClassdated
5.InformationAbouttheRegistrantMay30,1997.
Miscellaneous;AdditionalInformationAboutPrime
FundDailyMoneyClass;ProspectusofPrime
FundDailyMoneyClassdatedMay30,1997;
AttachmentI.
Miscellaneous;ProspectusofCapitalReserves:
3/101
12/24/2014
MoneyMarketPortfoliodatedNovember29,1996.
byPersonsDeemedtobe
Underwriters
PARTB
InformationofPrimeFundDailyMoney
ClassdatedMay30,1997
ingAcquired
MoneyMarketPortfolioforthefiscalyear
endedJuly31,1996;FinancialStatementsof
MoneyMarketPortfolioInitialClass
(currentlyknownasPrimeFundDaily
MoneyClass)fortheFiscalYearEnded
October31,1996.
MoneyMarketPortfolioforthefiscalperiod
endedJanuary31,1997;Financial
StatementsofPrimeFundfortheFiscal
PeriodEndedApril30,1997.
fiscalperiodEndedJanuary31,1997.
Statement.
TAXEXEMPTFUND(FORMERLYDAILYTAXEXEMPTMONEYFUND)
PARTA
[DownloadTable]
spectus
ProposedTransaction
ProspectusofTaxExemptFund:DailyMoney
5.InformationAbouttheRegistrantClassdatedMay30,1997.
Miscellaneous;AdditionalInformationAbout
TaxExemptFundDailyMoneyClass;Prospectus
ofTaxExemptFundDailyMoneyClassdated
May30,1997;AttachmentI.
4/101
12/24/2014
Miscellaneous;ProspectusofCapitalReserves:
MunicipalMoneyMarketPortfoliodatedNovember
29,1996.
byPersonsDeemedtobe
Underwriters
PARTB
InformationofTaxExemptFundDaily
MoneyClassdatedMay30,1997
ingAcquired
MunicipalMoneyMarketPortfolioforthe
fiscalyearendedJuly31,1996;Financial
StatementsofDailyTaxExemptMoney
FundInitialClass(currentlyknownas
TaxExemptFundDailyMoneyClass)for
theFiscalYearEndedOctober31,1996.
MunicipalMoneyMarketPortfolioforthe
fiscalperiodendedJanuary31,1997;
FinancialStatementsofTaxExemptFund
fortheFiscalPeriodEndedApril30,1997.
fiscalperiodEndedJanuary31,1997.
Statement.
IMPORTANTPROXYMATERIALS...
PLEASECASTYOURVOTENOW!
DearCapitalReservesFundsShareholder:
OnSeptember17,1997,aspecialshareholdermeetingofthefollowing
CapitalReservesPortfolioswillbeheld:
(mediumsolidbullet)MoneyMarketPortfolio
(mediumsolidbullet)U.S.GovernmentPortfolio
(mediumsolidbullet)MunicipalMoneyMarketPortfolio
THISPACKAGECONTAINSASEPARATEVOTINGCARDFOREACHPORTFOLIOYOUOWN.
IFTHEREISMORETHANONECARDINYOURPACKAGE,ITISIMPORTANTTHATYOU
VOTEEACHCARD.
Thematterstobediscussedareimportant,anddirectlyaffectyour
investment.Asashareholder,youcastonevoteforeachshareand
fractionalvotesforfractionalsharesofeachportfolioyouown.YOUMAY
THINKYOURVOTEISINSIGNIFICANT,BUTEVERYVOTEISEXTREMELYIMPORTANT.
Wemustcontinuesendingrequeststovoteuntilamajorityoftheshares
arevotedpriortothemeeting.Additionalmailingsareexpensive,and
thesecostsarechargeddirectlytotheportfolios.
TheenclosedProxyStatement(s)detail(s)theproposalsunder
consideration.Alistofeachissuecanbefoundonthefirstpageofeach
ProxyStatement.Inaddition,wehaveattachedaQ&Atoassistyouin
understandingtheproposalsthatmayrequireyourvote.Afteryouhave
readthematerial,pleasecastyourvotepromptlybysigningandreturning
theenclosedproxycard(s).Itisimportantthatyousignyourproxycard
exactlyasyournameappearsintheregistrationoftheproxycard.A
postagepaidenvelopehasbeenprovided.Yourtimewillbewellspent,and
youwillhelpsavethecostofadditionalmailings.
Theseproposalshavebeencarefullyconsideredbyeachportfolio'sBoardof
Trustees,whichisresponsibleforprotectingyourinterestsasa
shareholder.THEBOARDOFTRUSTEESBELIEVESTHESEPROPOSALSAREFAIRAND
REASONABLE,ANDRECOMMENDSTHATYOUAPPROVETHEM.Ifyouhaveany
questionsaboutanyoftheproposals,pleasedonothesitatetocontact
5/101
12/24/2014
FidelityClientServicesat
8008433001.
Remember,thisisyouropportunitytovoiceyouropiniononmatters
affectingyourportfolio(s).YOURPARTICIPATIONISEXTREMELYIMPORTANTNO
MATTERHOWMANYORHOWFEWSHARESYOUOWN.
Thankyou.Weappreciateyourpromptattention.
Sincerely,
/s/EdwardC.Johnson3d
EdwardC.Johnson3d
ChairmanandChiefExecutiveOfficer
Q&AIMPORTANTINFORMATIONTOHELP
YOUUNDERSTANDTHEPROPOSALS
THATYOUAREBEINGASKEDTO
VOTEON.
PLEASEREADTHEFULLTEXTOFTHISPROXYSTATEMENT.BELOWISABRIEF
OVERVIEWOFTHEMATTERSTOBEVOTEDUPON.YOURVOTEISIMPORTANT.IFYOU
HAVEANYQUESTIONSREGARDINGTHEPROPOSALSPLEASECALLCLIENTSERVICESAT
8008433001.WEAPPRECIATEYOUPLACINGYOURTRUSTINTHECAPITALRESERVES
PORTFOLIOSANDLOOKFORWARDTOHELPINGYOUACHIEVEYOURFINANCIALGOALS.
Q.WHATPROPOSALSAMIBEINGASKEDTOVOTEON?
A.Ifyouareashareholderinthefollowingfund(s),youwillbeaskedto
voteontheindicatedproposals:
CAPITALRESERVES:MONEYMARKETPORTFOLIO
(mediumsolidbullet)ToapproveanAgreementandPlanofReorganization
betweenMoneyMarket
PortfolioandPrimeFund,afundofNewburyStreetTrust.
CAPITALRESERVES:U.S.GOVERNMENTPORTFOLIO
betweenU.S.Government
PortfolioandTreasuryFund,afundofNewburyStreetTrust.
CAPITALRESERVES:MUNICIPALMONEYMARKETPORTFOLIO
betweenMunicipalMoney
MarketPortfolioandTaxExemptFund,afundofNewburyStreetTrust.
Q.WHYARECAPITALRESERVES:MONEYMARKETPORTFOLIO,CAPITALRESERVES:U.S.
GOVERNMENTPORTFOLIOANDCAPITALRESERVES:MUNICIPALMONEYMARKETPORTFOLIO
EACHPROPOSINGTOADOPTANAGREEMENTANDPLANOFREORGANIZATION?
A.TheproposalistomergetheexistingCapitalReserves:MoneyMarket
Portfolio,CapitalReserves:U.S.GovernmentPortfolio,andCapital
Reserves:MunicipalMoneyMarketPortfoliointoanewlycreatedclass
CapitalReservesClassofPrimeFund,TreasuryFund,andTaxExemptFund,
alllargermoneymarketfundsalsomanagedbyFidelityManagement&
ResearchCompany(FMR).FMRispresentingsimilarproposalstoallofthe
CapitalReservesPortfoliositmanages.MergingthefundswillhelpFMR
manageyourmoneymoreefficiently.
Iftheproposalsareapproved,youwillpaylowercostsforyour
investmenttotalfundexpensesof0.90%peryear,insteadof0.99%per
year.(Theseexpensesarebasedonvoluntaryexpenselimitsagreedtoby
FMR.Theycouldchangeinthefuture,whetherornottheReorganization
takesplace.)
Q.WILLTHEREBEANYOTHERCHANGESTOCAPITALRESERVES:MUNICIPALMONEY
MARKETPORTFOLIOONCETHEREORGANIZATIONOCCURS?
A.TaxExemptFund:CapitalReservesClassisdesignedtobesimilarto
CapitalReserves:MunicipalMoneyMarketPortfolio.Youwillnothaveto
changehowyoudobusinesswithFidelity,orhavetotakeanyotheraction
(otherthanvoting)tomaintainyourinvestment.
TaxExemptFundhasslightlydifferentinvestmentpoliciesthanCapital
Reserves:MunicipalMoneyMarketPortfolio.MunicipalMoneyMarket
Portfoliomayinvestupto100%ofitsassetsinsecuritieswhoseinterest
isataxpreferenceitemforpurposesofthefederalalternativeminimum
tax,orAMT.TaxExemptFunddoesnotinvestinAMTsecurities.AMT
securitiesgenerallypayhigheryieldsthanmunicipalsecuritiesthatare
fullytaxexempt,butincreasethetaxliabilityforsomeinvestors.Not
investinginAMTsecuritieswillnegativelyimpactTaxExemptFund:Capital
ReservesClass'syieldapproximately0.03%0.08%peryearcomparedto
MunicipalMoneyMarketPortfolio.However,thisimpactshouldbeoffsetby
the0.09%expensereductioniftheReorganizationisapproved.
Q.WILLTHEREBEANYOTHERCHANGESTOCAPITALRESERVES:MONEYMARKET
PORTFOLIOONCETHEREORGANIZATIONOCCURS?
A.PrimeFund:CapitalReservesClassisdesignedtobesimilartoCapital
Reserves:MoneyMarketPortfolio.Youwillnothavetochangehowyoudo
businesswithFidelity,orhavetotakeanyotheraction(otherthan
voting)tomaintainyourinvestment.
PrimeFundhasslightlydifferentinvestmentpoliciesthanCapital
Reserves:MoneyMarketPortfolio.PrimeFundisratedAAAmandAaaby
Standard&Poor'sandMoody'sInvestorsService,respectively.These
ratingsprohibitthefundfrominvestinginanysecondtierandsplitrated
securities,andlimitsthefund'sweightedaveragematurityto60days.
6/101
12/24/2014
MoneyMarketPortfolioisnotaratedfund,andcanthereforeinvestupto
5%ofitsnetassetsinsecondtiersecurities,andcanpurchasesplit
ratedsecurities.
Q.WILLTHEREBEANYOTHERCHANGESTOCAPITALRESERVES:U.S.GOVERNMENT
PORTFOLIOONCETHEREORGANIZATIONOCCURS?
A.TreasuryFund:CapitalReservesClassisdesignedtobesimilarto
CapitalReserves:U.S.GovernmentPortfolio.Youwillnothavetochange
howyoudobusinesswithFidelity,orhavetotakeanyotheraction(other
thanvoting)tomaintainyourinvestment.
TreasuryFundhasslightlydifferentinvestmentpoliciesthanCapital
Reserves:U.S.GovernmentPortfolio.U.S.GovernmentPortfoliomayinvest
inU.S.Governmentsecuritiesthatarebackedbythefullfaithandcredit
oftheUnitedStatesandinrepurchaseagreementsbackedbythese
securities.TreasuryFundinvestsonlyinU.S.Treasurysecuritiesandin
repurchaseagreementsbackedbythesesecurities.AlthoughU.S.Government
PortfolioispermittedtoinvestinU.S.Governmentsecuritiesotherthan
U.S.Treasurysecurities,itcurrentlydoesnotown,ordoesnotanticipate
purchasing,anysecuritiesthatwouldbeconsideredineligibleforTreasury
Fund.Itsportfolioholdingsarethereforesubstantiallysimilar,andwill
notmateriallychangewhenthereorganizationoccurs.
Q.HASMYFUND'SBOARDOFTRUSTEESAPPROVEDTHEPROPOSALS?
A.Yes.TheBoardofTrusteesofeachfundhasunanimouslyapprovedthe
proposals,andrecommendsthatyouvotetoapproveeachone.
Q.HOWDOIVOTEMYSHARES?
A.Youcanvoteyoursharesbycompletingandsigningtheenclosedproxy
card(s),andmailingthemintheenclosedpostagepaidenvelope.Ifyou
needanyassistance,orhaveanyquestionsregardingtheproposalsorhow
tovoteyourshares,pleasecallFidelityClientServicesat8008433001.
VotethisproxycardTODAY!Yourpromptresponsewill
savetheexpenseofadditionalmailings.
Returntheproxycardintheenclosedenvelopeormailto:
FIDELITYINVESTMENTS
ProxyDepartment
P.O.Box9107
Hingham,MA020439848
PLEASEDETACHATPERFORATIONBEFOREMAILING.
DAILYMONEYFUND:CAPITALRESERVES:U.S.GOVERNMENTPORTFOLIO
PROXYSOLICITEDBYTHETRUSTEES
Theundersigned,revokingpreviousproxies,herebyappoint(s)EdwardC.
Johnson3d,ArthurS.Loring,andDonaldJ.Kirk,oranyoneormoreof
them,attorneys,withfullpowerofsubstitution,tovoteallsharesof
DailyMoneyFund:CapitalReserves:U.S.GovernmentPortfoliowhichthe
undersignedisentitledtovoteattheSpecialMeetingofShareholdersof
thefundtobeheldattheofficeofthetrustat82DevonshireSt.,
Boston,MA02109,onSeptember17,1997at11:30a.m.Easterntimeandat
anyadjournmentsthereof.Allpowersmaybeexercisedbyamajorityof
saidproxyholdersorsubstitutesvotingoractingor,ifonlyonevotes
andacts,thenbythatone.ThisProxyshallbevotedontheproposals
describedintheProxyStatementasspecifiedonthereverseside.Receipt
oftheNoticeoftheMeetingandtheaccompanyingProxyStatementishereby
acknowledged.
NOTE:PleasesignexactlyasyournameappearsonthisProxy.Whensigning
inafiduciarycapacity,suchasexecutor,administrator,trustee,
attorney,guardian,etc.,pleasesoindicate.Corporateandpartnership
proxiesshouldbesignedbyanauthorizedpersonindicatingtheperson's
title.
Date_____________,1997
_______________________________________
_______________________________________
Signature(s)(Title(s),ifapplicable)
PLEASESIGN,DATE,ANDRETURN
PROMPTLYINENCLOSEDENVELOPE
[cusip#233809409/fund#681]
PleaserefertotheProxyStatementdiscussionofthismatter.
IFNOSPECIFICATIONISMADE,THEPROXYSHALLBEVOTEDFORTHEPROPOSAL.
Astoanyothermatter,saidattorneysshallvoteinaccordancewiththeir
bestjudgment.
THEBOARDOFTRUSTEESRECOMMENDSAVOTEFORTHEFOLLOWING:
__________________________________________________________________________
___________________
1.ToapproveanAgreementandPlanofReorganizationFOR[]AGAINST[]ABSTAIN[]1.
betweenCapitalReserves:U.S.Government
PortfolioandTreasuryFund.TheAgreementprovides
forthetransferofalloftheassetsofU.S.Government
PortfoliotoTreasuryFundinexchangesolelyfor
7/101
12/24/2014
CapitalReservesClasssharesofbeneficialinterestof
TreasuryFundandtheassumptionbyTreasuryFund
ofU.S.GovernmentPortfolio'sliabilities,followedby
thedistributionofCapitalReservesClasssharesof
TreasuryFundtoshareholdersofU.S.Government
PortfolioinliquidationofU.S.GovernmentPortfolio.
[CRUSGPXC0797][cusip#233809409/fund#681]
FIDELITYINVESTMENTS
ProxyDepartment
P.O.Box9107
Hingham,MA020439848
DAILYMONEYFUND:CAPITALRESERVES:MONEYMARKETPORTFOLIO
DailyMoneyFund:CapitalReserves:MoneyMarketPortfoliowhichthe
undersignedisentitledtovoteattheSpecialMeetingofShareholdersof
thefundtobeheldattheofficeofthetrustat82DevonshireSt.,
Boston,MA02109,onSeptember17,1997at11:30a.m.Easterntimeandat
anyadjournmentsthereof.Allpowersmaybeexercisedbyamajorityof
saidproxyholdersorsubstitutesvotingoractingor,ifonlyonevotes
andacts,thenbythatone.ThisProxyshallbevotedontheproposals
describedintheProxyStatementasspecifiedonthereverseside.Receipt
oftheNoticeoftheMeetingandtheaccompanyingProxyStatementishereby
acknowledged.
title.
Date_____________,1997
_______________________________________
_______________________________________
[cusip#233809607/fund#682]
bestjudgment.
__________________________________________________________________________
___________________
betweenCapitalReserves:MoneyMarketPortfolio
andPrimeFund.TheAgreementprovidesforthe
transferofalloftheassetsofMoneyMarketPortfolio
toPrimeFundinexchangesolelyforCapitalReserves
ClasssharesofbeneficialinterestofPrimeFundand
theassumptionbyPrimeFundofMoneyMarket
Portfolio'sliabilities,followedbythedistributionof
CapitalReservesClasssharesofPrimeFundto
shareholdersofMoneyMarketPortfolioinliquidation
ofMoneyMarketPortfolio.
[CRMMPPXC0797][cusip#233809607/fund#682]
FIDELITYINVESTMENTS
ProxyDepartment
P.O.Box9107
Hingham,MA020439848
DAILYMONEYFUND:CAPITALRESERVES:MUNICIPALMONEYMARKETPORTFOLIO
8/101
12/24/2014
DailyMoneyFund:CapitalReserves:MunicipalMoneyMarketPortfolio
whichtheundersignedisentitledtovoteattheSpecialMeetingof
Shareholdersofthefundtobeheldattheofficeofthetrustat82
DevonshireSt.,Boston,MA02109,onSeptember17,1997at11:30a.m.
Easterntimeandatanyadjournmentsthereof.Allpowersmaybeexercised
byamajorityofsaidproxyholdersorsubstitutesvotingoractingor,if
onlyonevotesandacts,thenbythatone.ThisProxyshallbevotedon
theproposalsdescribedintheProxyStatementasspecifiedonthereverse
side.ReceiptoftheNoticeoftheMeetingandtheaccompanyingProxy
Statementisherebyacknowledged.
title.
Date_____________,1997
_______________________________________
_______________________________________
[cusip#233809508/fund#683]
bestjudgment.
__________________________________________________________________________
___________________
betweenCapitalReserves:MunicipalMoneyMarket
PortfolioandTaxExemptFund.TheAgreement
providesforthetransferofalloftheassetsof
MunicipalMoneyMarketPortfoliotoTaxExempt
FundinexchangesolelyforCapitalReservesClass
sharesofbeneficialinterestofTaxExemptFundand
theassumptionbyTaxExemptFundofMunicipal
MoneyMarketPortfolio'sliabilities,followedbythe
distributionofCapitalReservesClasssharesof
TaxExemptFundtoshareholdersofMunicipal
MoneyMarketPortfolioinliquidationofMunicipal
MoneyMarketPortfolio.
[CRMMMPXC0797][cusip#233809508/fund#683]
AFUNDOF
DAILYMONEYFUND
82DEVONSHIRESTREET,BOSTON,MASSACHUSETTS02109
18008433001
NOTICEOFSPECIALMEETINGOFSHAREHOLDERS
TotheShareholdersofCapitalReserves:U.S.GovernmentPortfolio:
NOTICEISHEREBYGIVENthataSpecialMeetingofShareholders(the
Meeting)ofCapitalReserves:U.S.GovernmentPortfolio(U.S.Government
Portfolio),willbeheldattheofficeofDailyMoneyFund,82Devonshire
Street,Boston,Massachusetts02109onWednesday,September17,1997,at
11:30a.m.Easterntime.ThepurposeoftheMeetingistoconsiderandact
uponthefollowingproposal,andtotransactsuchotherbusinessasmay
properlycomebeforetheMeetingoranyadjournmentsthereof.
(1)ToapproveanAgreementandPlanofReorganizationbetweenU.S.
GovernmentPortfolioandTreasuryFund,afundofNewburyStreetTrust,
providingforthetransferofalloftheassetsofU.S.Government
PortfoliotoTreasuryFundinexchangesolelyforCapitalReservesClass
sharesofbeneficialinterestofTreasuryFundandtheassumptionby
TreasuryFundofU.S.GovernmentPortfolio'sliabilities,followedbythe
distributionofCapitalReservesClasssharesofTreasuryFundto
shareholdersofU.S.GovernmentPortfolioinliquidationofU.S.Government
Portfolio.
TheBoardofTrusteeshasfixedthecloseofbusinessonJuly21,1997as
therecorddateforthedeterminationoftheshareholdersofU.S.
GovernmentPortfolioentitledtonoticeof,andtovoteat,suchMeeting
andanyadjournmentsthereof.
9/101
12/24/2014
ByorderoftheBoardofTrustees,
ARTHURS.LORING,Secretary
July21,1997
YOURVOTEISIMPORTANT
PLEASERETURNYOURPROXYCARDPROMPTLY.
SHAREHOLDERSAREINVITEDTOATTENDTHEMEETINGINPERSON.ANYSHAREHOLDER
WHODOESNOTEXPECTTOATTENDTHEMEETINGISURGEDTOINDICATEVOTING
INSTRUCTIONSONTHEENCLOSEDPROXYCARD,DATEANDSIGNIT,ANDRETURNITIN
THEENVELOPEPROVIDED,WHICHNEEDSNOPOSTAGEIFMAILEDINTHEUNITED
STATES.INORDERTOAVOIDUNNECESSARYEXPENSE,WEASKYOURCOOPERATIONIN
MAILINGYOURPROXYCARDPROMPTLY,NOMATTERHOWLARGEORSMALLYOUR
HOLDINGSMAYBE.
INSTRUCTIONSFOREXECUTINGPROXYCARD
Thefollowinggeneralrulesforexecutingproxycardsmaybeofassistance
toyouandhelpavoidthetimeandexpenseinvolvedinvalidatingyourvote
ifyoufailtoexecuteyourproxycardproperly.
1.INDIVIDUALACCOUNTS:Yournameshouldbesignedexactlyasitappears
intheregistrationontheproxycard.
2.JOINTACCOUNTS:Eitherpartymaysign,butthenameoftheparty
signingshouldconformexactlytoanameshownintheregistration.
3.ALLOTHERACCOUNTSshouldshowthecapacityoftheindividualsigning.
Thiscanbeshowneitherintheformoftheaccountregistrationitselfor
bytheindividualexecutingtheproxycard.Forexample:
REGISTRATIONVALIDSIGNATURE
A.1)ABCCorp.JohnSmith,Treasurer
2)ABCCorp.JohnSmith,Treasurer
c/oJohnSmith,Treasurer
B.1)ABCCorp.ProfitSharingPlanAnnB.Collins,Trustee
2)ABCTrustAnnB.Collins,Trustee
3)AnnB.Collins,TrusteeAnnB.Collins,Trustee
u/t/d12/28/78
C.1)AnthonyB.Craft,Cust.AnthonyB.Craft
f/b/oAnthonyB.Craft,Jr.
UGMA
AFUNDOF
DAILYMONEYFUND
18008433001
PROXYSTATEMENTANDPROSPECTUS
JULY21,1997
ThisProxyStatementandProspectus(ProxyStatement)isbeingfurnished
toshareholdersofCapitalReserves:U.S.GovernmentPortfolio(U.S.
GovernmentPortfolio),afundofDailyMoneyFund,inconnectionwiththe
solicitationofproxiesbyDailyMoneyFund'sBoardofTrusteesforuseat
theSpecialMeetingofShareholdersofU.S.GovernmentPortfolioandatany
adjournmentsthereof(theMeeting).TheMeetingwillbeheldonWednesday,
September17,1997at11:30a.m.Easterntimeat82DevonshireStreet,
Boston,Massachusetts02109,theprincipalexecutiveofficeofDailyMoney
Fund.
AsmorefullydescribedinthisProxyStatement,thepurposeofthe
Meetingistovoteonaproposedreorganization(Reorganization).Pursuant
toanAgreementandPlanofReorganization(theAgreement),U.S.Government
PortfoliowouldtransferallofitsassetstoTreasuryFund,afundof
NewburyStreetTrust,inexchangesolelyforCapitalReservesClassshares
ofbeneficialinterestofTreasuryFund(CapitalReservesClassShares)and
theassumptionbyTreasuryFundofU.S.GovernmentPortfolio'sliabilities.
CapitalReservesClassShareswouldthenbedistributedtoU.S.Government
Portfolioshareholders,sothateachsuchshareholderwouldreceivethe
numberoffullandfractionalCapitalReservesClassSharesequaltothe
numberoffullandfractionalsharesofU.S.GovernmentPortfolioheldby
suchshareholderonOctober30,1997,orsuchotherdateasthepartiesmay
agree(theClosingDate).U.S.GovernmentPortfoliowilldistribute
CapitalReservesClassSharestoitsshareholdersinliquidation,as
providedintheAgreement.
TreasuryFund,amoneymarketfund,isadiversifiedfundofNewbury
StreetTrust,anopenendmanagementinvestmentcompanyorganizedasa
DelawarebusinesstrustonDecember30,1991.NewburyStreetTrust's
principalexecutiveofficeislocatedat82DevonshireStreet,Boston,
Massachusetts02109(18008433001).TreasuryFund'sinvestmentobjective
istoobtainashighalevelofcurrentincomeasisconsistentwiththe
10/101
12/24/2014
preservationofcapitalandliquidity.TreasuryFundseekstoachieveits
investmentobjectivebyinvestingonlyinU.S.Treasurysecurities,
includingbills,notes,andbonds,andinrepurchaseagreementsforthese
securities.TreasuryFundiscurrentlyauthorizedtoissuethreeclasses
ofsharesdesignatedTreasuryFundDailyMoneyClassshares,whichare
currentlyoutstanding,TreasuryFundAdvisorBClassshares,whichalso
arecurrentlyoutstanding,andTreasuryFundCapitalReservesClass
shares,whichwillbeissuedinitiallytoU.S.GovernmentPortfolio
shareholdersinconnectionwiththeReorganization.
ThisProxyStatement,whichshouldberetainedforfuturereference,sets
forthconciselytheinformationabouttheReorganizationandTreasuryFund
thatashareholdershouldknowbeforevotingontheproposed
Reorganization.ThisProxyStatementisaccompaniedbytheProspectusfor
TreasuryFundDailyMoneyClass,datedMay30,1997.TheStatementof
AdditionalInformationforTreasuryFundDailyMoneyClass,datedMay30,
1997,isavailableuponrequest.TheProspectusandtheStatementof
AdditionalInformationforTreasuryFundDailyMoneyClasshavebeen
filedwiththeSecuritiesandExchangeCommission(theSEC)andare
incorporatedhereinbyreference.AStatementofAdditionalInformation,
datedJuly21,1997,relatingtothisProxyStatementhasbeenfiledwith
theSECandisincorporatedhereinbyreference.AProspectus,dated
November29,1996(assupplementedMarch21,1997),andaStatementof
AdditionalInformation,datedNovember29,1996(assupplementedJanuary2,
1997),forU.S.GovernmentPortfoliohavebeenfiledwiththeSECandare
incorporatedhereinbyreference.Copiesofthesedocuments,aswellas
eachfund'smostrecentannualandsemiannualreports,maybeobtained
withoutchargebycontactingFidelityClientServicesat82Devonshire
Street,Boston,Massachusetts02109orbycalling18008433001.
THESESECURITIESHAVENOTBEENAPPROVEDORDISAPPROVEDBYTHESECURITIES
ANDEXCHANGECOMMISSION,NORHASTHESECURITIESANDEXCHANGECOMMISSION
PASSEDUPONTHEACCURACYORADEQUACYOFTHISPROXYSTATEMENTAND
PROSPECTUS.ANYREPRESENTATIONTOTHECONTRARYISACRIMINALOFFENSE.
TABLEOFCONTENTS
VOTINGINFORMATION
SYNOPSIS
COMPARISONOFOTHERPOLICIESOFTHEFUNDS
COMPARISONOFPRINCIPALRISKFACTORS
THEPROPOSEDTRANSACTION
ADDITIONALINFORMATIONABOUTTREASURYFUND
MISCELLANEOUS
EXHIBIT1.FORMOFAGREEMENTANDPLANOFREORGANIZATIONOFU.S.GOVERNMENT
PORTFOLIO
SPECIALMEETINGOFSHAREHOLDERSOF
AFUNDOFDAILYMONEYFUND
TOBEHELDONSEPTEMBER17,1997
18008433001
_________________________________
VOTINGINFORMATION
ThisProxyStatementandProspectus(ProxyStatement)isfurnishedin
connectionwithasolicitationofproxiesmadeby,andonbehalfof,the
BoardofTrusteesofDailyMoneyFund(DailyMoneyFundorthetrust)tobe
usedattheSpecialMeetingofShareholdersofCapitalReserves:U.S.
GovernmentPortfolio(U.S.GovernmentPortfolioorthefund)andatany
adjournmentsthereof(theMeeting),tobeheldonWednesday,September17,
1997at11:30a.m.Easterntimeat82DevonshireStreet,Boston,
Massachusetts02109,theprincipalexecutiveofficeofthetrustand
FidelityManagement&ResearchCompany(FMR),thefund'sinvestment
adviser.
ThepurposeoftheMeetingissetforthintheaccompanyingNotice.The
solicitationismadeprimarilybythemailingofthisProxyStatementand
theaccompanyingproxycardonoraboutJuly21,1997.Supplementary
solicitationsmaybemadebymail,telephone,telegraph,facsimile,orby
personalinterviewbyrepresentativesofthetrust.Inaddition,D.F.King
&Co.and/orManagementInformationServicesCorp.maybepaidona
percallbasistosolicitshareholdersonbehalfofthefundatan
anticipatedcostofapproximately$26,700.Theexpensesinconnectionwith
preparingthisProxyStatementanditsenclosuresandofallsolicitations
willbebornebythefund;however,becauseFMRhasvoluntarilyagreedto
limitthefund'stotaloperatingexpenses,itisexpectedthatthese
expenseswilleffectivelybebornebyFMR.FMRwillreimbursebrokerage
firmsandothersfortheirreasonableexpensesinforwardingsolicitation
materialtothebeneficialownersofshares.
Iftheenclosedproxycardisexecutedandreturned,itmaynevertheless
berevokedatanytimepriortoitsusebywrittennotificationreceivedby
thetrust,bytheexecutionofalaterdatedproxycard,orbyattending
theMeetingandvotinginperson.
AllproxycardssolicitedbytheBoardofTrusteesthatareproperly
executedandreceivedbytheSecretarypriortotheMeeting,andwhichare
notrevoked,willbevotedattheMeeting.Sharesrepresentedbysuch
proxieswillbevotedinaccordancewiththeinstructionsthereon.Ifno
11/101
12/24/2014
specificationismadeonaproxycard,itwillbevotedFORthematters
specifiedontheproxycard.Onlyproxiesthatarevotedwillbecounted
towardestablishingaquorum.Brokernonvotesarenotconsideredvotedfor
thispurpose.ShareholdersshouldnotethatwhilevotestoABSTAINwill
counttowardestablishingaquorum,passageofanyproposalbeing
consideredattheMeetingwilloccuronlyifasufficientnumberofvotes
arecastFORtheproposal.Accordingly,votestoABSTAINandvotesAGAINST
willhavethesameeffectindeterminingwhethertheproposalisapproved.
U.S.GovernmentPortfoliomayalsoarrangetohavevotesrecordedby
telephone.D.F.King&Co.maybepaidonapercallbasisfor
votebyphonesolicitationsonbehalfofthefundatananticipatedcostof
approximately$8,000.Theexpensesinconnectionwithtelephonevoting
expenseswilleffectivelybebornebyFMR.Ifthefundrecordsvotesby
telephone,itwilluseproceduresdesignedtoauthenticateshareholders'
identities,toallowshareholderstoauthorizethevotingoftheirshares
inaccordancewiththeirinstructions,andtoconfirmthattheir
instructionshavebeenproperlyrecorded.Proxiesgivenbytelephonemay
berevokedatanytimebeforetheyarevotedinthesamemannerthat
proxiesvotedbymailmayberevoked.
IfaquorumisnotpresentattheMeeting,orifaquorumispresentat
theMeetingbutsufficientvotestoapproveoneormoreoftheproposed
itemsarenotreceived,orifothermattersariserequiringshareholder
attention,thepersonsnamedasproxiesmayproposeoneormore
adjournmentsoftheMeetingtopermitfurthersolicitationofproxies.Any
suchadjournmentwillrequiretheaffirmativevoteofamajorityofthose
sharespresentattheMeetingorrepresentedbyproxy.Whenvotingona
proposedadjournment,thepersonsnamedasproxieswillvoteFORthe
proposedadjournmentallsharesthattheyareentitledtovotewithrespect
tothatitem,unlessdirectedtovoteAGAINSTtheitem,inwhichcasesuch
shareswillbevotedagainsttheproposedadjournmentwithrespecttothat
item.Ashareholdervotemaybetakenononeormoreoftheitemsinthis
ProxyStatementoronanyotherbusinessproperlypresentedatthemeeting
priortosuchadjournmentifsufficientvoteshavebeenreceivedanditis
otherwiseappropriate.
OnApril30,1997,therewere1,352,078,103sharesofTreasuryFund
DailyMoneyClass(thenDailyMoneyFund:U.S.TreasuryPortfolioInitial
Class)and43,967,205sharesofTreasuryFundAdvisorBClass(thenDaily
MoneyFund:U.S.TreasuryPortfolioClassB)issuedandoutstanding.
OnApril30,1997,therewere271,615,936sharesofU.S.Government
Portfolioissuedandoutstanding.ShareholdersofrecordofU.S.
GovernmentPortfolioatthecloseofbusinessonJuly21,1997,willbe
entitledtovoteattheMeeting.Eachsuchshareholderwillbeentitledto
onevoteforeachfullshareheldonthatdateandaproportionateshareof
onevoteforeachfractionalshareheldonthatdate.
OnApril30,1997,thetrusteesandofficersofDailyMoneyFundandof
NewburyStreetTrust(thenknownasDailyTaxExemptMoneyFund)ownedin
theaggregatelessthan1%ofthesharesofU.S.GovernmentPortfolioand
TreasuryFund(thenDailyMoneyFund:U.S.TreasuryPortfolio),
respectively.
OnApril30,1997,thefollowingshareholderswereknownbyDailyMoney
FundorbyNewburyStreetTrusttoownofrecordorbeneficially5%ormore
ofU.S.GovernmentPortfolio'sorTreasuryFund'soutstandingshares:
[DownloadTable]
PERCENTAGEOFPERCENTAGEOF
OUTSTANDINGFUNDOUTSTANDINGCLASS
SHAREHOLDERADDRESSSHARESSHARES
U.S.GOVERNMENTPORTFOLIO
SaperstonFinancialGroupBuffalo,NY11.91%
GW&WadeAssetManagementWellesley,MA11.85%
Co.
SecuritiesAmerica,Inc.Omaha,NE8.77%
MurielSiebert&Co.,Inc.NewYork,NY8.40%
OrientalFinancialServicesCorp.HatoRey,PR6.93%
TREASURYFUNDDAILYMONEY
CLASS
TexasCommerceBank,N.A.Houston,TX23.35%24.11%
BankofNewYorkNewYork,NY5.79%5.98%
FirstTrustSt.Paul,MN4.91%5.08%
12/101
12/24/2014
FirstNationalBankofMarylandBaltimore,MD4.90%5.06%
TREASURYFUNDADVISORB
CLASS
AdvantageCapitalCorp.Houston,TX1.57%49.78%
TotheknowledgeofDailyMoneyFundandNewburyStreetTrust,noother
shareholderownedofrecordorbeneficially5%ormoreoftheoutstanding
sharesofU.S.GovernmentPortfolioorTreasuryFundonthatdate.Ifthe
ReorganizationbecameeffectiveatApril30,1997,theaboveshareholders
ofU.S.GovernmentPortfoliowouldhaveownedofrecordorbeneficiallythe
samepercentagesshownaboveofTreasuryFundCapitalReservesClass;the
aboveshareholdersofTreasuryFundDailyMoneyClassandTreasuryFund
AdvisorBClasswouldhaveownedofrecordorbeneficiallythesame
percentagesshownaboveofTreasuryFundDailyMoneyClassandTreasury
FundAdvisorBClass,respectively;andTexasCommerceBank,N.A.would
haveownedofrecordorbeneficially20.07%ofTreasuryFundasawhole.
Ashareholderowningofrecordorbeneficiallymorethan25%ofaFund's
outstandingsharesmaybeconsideredacontrollingperson.That
shareholder'svotecouldhaveamoresignificanteffectonmatters
presentedatashareholders'meetingthanvotesofothershareholders.
VOTEREQUIRED:APPROVALOFTHEREORGANIZATIONREQUIRESTHEAFFIRMATIVE
VOTEOFA"MAJORITYOFTHEOUTSTANDINGVOTINGSECURITIES"OFU.S.
GOVERNMENTPORTFOLIO.UNDERTHEINVESTMENTCOMPANYACTOF1940(THE1940
ACT),THEVOTEOFA"MAJORITYOFTHEOUTSTANDINGVOTINGSECURITIES"MEANS
THEAFFIRMATIVEVOTEOFTHELESSEROF(A)67%ORMOREOFTHEVOTING
SECURITIESPRESENTATTHEMEETINGORREPRESENTEDBYPROXYIFTHEHOLDERSOF
MORETHAN50%OFTHEOUTSTANDINGVOTINGSECURITIESAREPRESENTOR
REPRESENTEDBYPROXYOR(B)MORETHAN50%OFTHEOUTSTANDINGVOTING
SECURITIES.BROKERNONVOTESARENOTCONSIDERED"PRESENT"FORTHISPURPOSE.
SYNOPSIS
SUMMARY
Thefollowingisasummaryofcertaininformationcontainedelsewherein
thisProxyStatement,intheAgreement,andintheProspectusesofU.S.
GovernmentPortfolioandTreasuryFundDailyMoneyClass,whichare
incorporatedhereinbythisreference.Shareholdersshouldreadtheentire
ProxyStatementandtheenclosedProspectusofTreasuryFundDailyMoney
ClasscarefullyformorecompleteinformationabouttheReorganizationand
TreasuryFund.
TheproposalistomergeU.S.GovernmentPortfoliointoanewlycreated
classCapitalReservesClassofTreasuryFund,alargermoneymarket
fundalsomanagedbyFMR.FMRispresentingsimilarproposalstoallof
theCapitalReservesPortfoliositmanages.MergingU.S.Government
PortfoliointoTreasuryFundCapitalReservesClasswillhelpFMRmanage
thefundsmoreefficiently.
Iftheproposalisapprovedyouwillhavelowercostsonyourinvestment
totalfundexpensesof0.90%peryear,insteadof0.99%peryear.(These
expensesarebasedonvoluntaryexpenselimitsagreedtobyFMR.They
couldchangeinthefuture,whetherornottheReorganizationtakesplace.)
TreasuryFundCapitalReservesClassisdesignedtobesimilartoU.S.
GovernmentPortfolio.Youwillnothavetochangehowyoudobusiness
withFidelityorhavetotakeanyotheraction(otherthanvoting)to
maintainyourinvestment.
INVESTMENTOBJECTIVESANDPOLICIES
U.S.GovernmentPortfolioandTreasuryFund(collectivelythe"Funds"or
eachindividuallya"Fund")haveessentiallythesameinvestmentobjective.
U.S.GovernmentPortfolioseeksashighalevelofcurrentincomeasis
consistentwiththepreservationofcapitalandliquiditybyinvestingin
moneymarketinstruments.TreasuryFundseekstoobtainashighalevelof
currentincomeasisconsistentwiththepreservationofcapitaland
liquidity.
U.S.GovernmentPortfolioinvestsonlyinU.S.Governmentsecuritiesthat
arebackedbythefullfaithandcreditoftheUnitedStatesandin
repurchaseagreementsforthesesecurities.TreasuryFundinvestsonlyin
U.S.Treasurysecuritiesandinrepurchaseagreementsforthesesecurities.
AlthoughU.S.GovernmentPortfolioispermittedtoinvestinU.S.
GovernmentsecuritiesotherthanU.S.Treasurysecurities,itcurrently
doesnotown,nordoesitanticipatepurchasing,anyportfoliosecurities
thatwouldbeconsideredineligibleinvestmentsforTreasuryFund.In
addition,TreasuryFundcurrentlydoesnotenterintoreverserepurchase
agreements.U.S.GovernmentPortfoliomayenterintoreverserepurchase
agreementsbuthasdonesoonlyinfrequentlyoverthepastseveralyears.
EXPENSESTRUCTURE
TreasuryFundCapitalReservesClasshaslowerexpensesthanU.S.
GovernmentPortfolio.Thus,ifshareholdersapprovetheReorganization,
theywillhavelowercostsontheirinvestments.
U.S.GovernmentPortfoliocurrentlypaysFMRamonthlymanagementfeeatan
annualrateof0.50%ofitsaveragenetassets.Also,underaDistribution
andServicePlanadoptedpursuanttoRule12b1underthe1940Act,the
Fundpaysitsdistributor,NationalFinancialServicesCorporation(NFSC),
13/101
12/24/2014
amonthlydistributionfeeatanannualrateof0.35%ofitsaveragenet
assets.Thus,U.S.GovernmentPortfoliocurrentlypaystotalmanagement
anddistributionfeesof0.85%.Inaddition,theFund'sDistributionand
ServicePlanspecificallyrecognizesthatFMRmaymakepaymentsfromits
managementfeerevenue,pastprofits,orotherresources(notfromthe
Fund'sassets)tocompensatefinancialintermediaries(includingNFSC)for
providingdistributionrelatedservicesfortheFund.TheBoardof
TrusteesofDailyMoneyFundhasauthorizedFMRtomakesuchpaymentsofup
to0.25%oftheFund'saveragenetassetsthroughoutthemonthbasedupon
thelevelofshareholdersupportanddistributionservicesprovided.FMR
hasvoluntarilyagreedtoreimburseU.S.GovernmentPortfoliototheextent
thatitstotaloperatingexpenses(excludinginterest,taxes,brokerage
commissions,andextraordinaryexpenses)exceed0.99%ofitsaveragenet
assets.
IfU.S.GovernmentPortfolioshareholdersapprovetheReorganization,they
willreceiveTreasuryFundCapitalReservesClassshares,whichwillpay
a0.25%managementfeeanda0.50%distributionfee.Thetotalmanagement
anddistributionfeesof0.75%tobepaidbyTreasuryFundCapital
ReservesClasswillbe0.10%lower,asapercentageofaveragenetassets,
thanthetotalmanagementanddistributionfeesof0.85%currentlypaidby
U.S.GovernmentPortfolio.Inaddition,theDistributionandServicePlan
forTreasuryFundCapitalReservesClassshareswillspecifically
recognizethatFMRmaymakepaymentsfromitsmanagementfeerevenue,past
profitsorotherresources(notfromtheClass'sassets)tocompensate
financialintermediariesforprovidingdistributionrelatedservicestothe
Class.FMRhasvoluntarilyagreedtoreimburseTreasuryFundCapital
ReservesClasstotheextentthatitstotaloperatingexpenses(excluding
interest,taxes,brokeragecommissions,andextraordinaryexpenses)exceed
0.90%ofitsaveragenetassets0.09%lowerthanU.S.Government
Portfolio'scurrent0.99%voluntaryexpenselimitation.AlthoughFMRmay
terminatethevoluntaryexpenselimitationwithrespecttoTreasuryFund
CapitalReservesClassatanytimewithoutpriornoticetoshareholders,
FMRhasnocurrentintentionofdoingso.
Insum,theReorganizationwouldgiveshareholdersofU.S.Government
Portfoliotheopportunitytoparticipateinalargermoneymarketfundwith
essentiallythesameinvestmentobjective,acomparableinvestment
portfolio,0.10%lowertotalmanagementanddistributionfees,anda0.09%
lowertotaloperatingexpenseratio,afterreimbursement.
TheBoardofTrusteesbelievesthattheReorganizationwouldbenefitU.S.
GovernmentPortfolio'sshareholdersandrecommendsthatshareholdersvote
infavoroftheReorganization.
THEPROPOSEDREORGANIZATION
ShareholdersofU.S.GovernmentPortfoliowillbeaskedattheMeetingto
voteuponandapprovetheReorganizationandtheAgreement,whichprovides
fortheacquisitionbyTreasuryFundofalloftheassetsofU.S.
GovernmentPortfolioinexchangesolelyforCapitalReservesClassshares
ofTreasuryFund(CapitalReservesClassShares)andtheassumptionby
TreasuryFundoftheliabilitiesofU.S.GovernmentPortfolio.U.S.
GovernmentPortfoliowillthendistributetheCapitalReservesClassShares
toitsshareholders,sothateachshareholderwillreceivethenumberof
fullandfractionalCapitalReservesClassSharesequaltothenumberof
fullandfractionalsharesofU.S.GovernmentPortfolioheldbysuch
shareholderontheClosingDate(definedbelow).TheexchangeofU.S.
GovernmentPortfolio'sassetsforCapitalReservesClassShareswilloccur
asof4:00p.m.EasterntimeonOctober30,1997,orsuchotherdateasthe
partiesmayagree(theClosingDate).U.S.GovernmentPortfoliowillthen
beliquidatedassoonaspracticablethereafter.
TheFundswillreceiveanopinionofcounselthattheReorganizationwill
notresultinanygainorlossforfederalincometaxpurposestoU.S.
GovernmentPortfolioorTreasuryFundortotheshareholdersofeither
Fund.TherightsandprivilegesoftheformershareholdersofU.S.
GovernmentPortfoliowillbeeffectivelyunchangedbytheReorganization,
exceptasdescribedonpage10undertheheading"FormsofOrganization."
COMPARATIVEFEETABLES
Thefollowingtablesshow(i)theshareholdertransactionexpensesthat
U.S.GovernmentPortfolioshareholderscurrentlyincur,andtheshareholder
transactionexpensesthatTreasuryFundCapitalReservesClass
shareholderswillincuraftergivingeffecttotheReorganization,and(ii)
thecurrentfeesandexpensesofU.S.GovernmentPortfolioforthe12
monthsendedJanuary31,1997(unaudited),andtheproformafeesfor
TreasuryFundCapitalReservesClassbasedonthesameperiod(unaudited)
aftergivingeffecttotheReorganization.
SHAREHOLDERTRANSACTIONEXPENSESarechargesthatshareholdersmaypaywhen
theybuyorsellsharesofaFund.
[DownloadTable]
U.S.GOVERNMENTTREASURYFUNDCAPITAL
PORTFOLIORESERVESCLASS
MaximumsaleschargeonpurchasesNoneNone
andreinvesteddistributions
14/101
12/24/2014
MaximumdeferredsaleschargeNoneNone
RedemptionfeeNoneNone
ExchangefeeNoneNone
ANNUALFUNDOPERATINGEXPENSES
AnnualfundoperatingexpensesarepaidoutofeachFund'sassetsand,in
thecaseofTreasuryFund,areallocatedtotheappropriateClass,as
applicable.TheexpensesofeachFund/Classarefactoredintoitsshare
priceordividendsandarenotchargeddirectlytoshareholderaccounts.
ThefollowingfiguresforU.S.GovernmentPortfolioarebasedonhistorical
expenses.ThefollowingproformaexpensesforTreasuryFundCapital
ReservesClassarebasedontheproposedexpensestructuredescribedabove,
withOtherExpensesestimated.Allfiguresarecalculatedasapercentage
ofaveragenetassets.
PROFORMAEXPENSES
U.S.GOVERNMENTTREASURYFUND
PORTFOLIOCAPITALRESERVESCLASS
ManagementFee0.34%*0.25%
12b1Fee(DistributionFee)0.35%0.50%
OtherExpenses0.30%0.15%**
TotalFundOperatingExpenses0.99%*0.90%**
*FMRhasvoluntarilyagreedtoreimburseU.S.GovernmentPortfoliotothe
extentthattotaloperatingexpenses(excludinginterest,taxes,brokerage
commissions,andextraordinaryexpenses)exceed0.99%oftheFund'saverage
netassets.Ifthisagreementwerenotineffect,theFund'smanagement
feeandtotaloperatingexpenses,asapercentageofaveragenetassets,
wouldhavebeen0.50%and1.15%,respectively.
**FMRhasvoluntarilyagreedtoreimburseTreasuryFundCapitalReserves
Classtotheextentthattotaloperatingexpenses(excludinginterest,
taxes,brokeragecommissions,andextraordinaryexpenses)exceed0.90%of
theClass'saveragenetassets.Ifthisagreementwerenotineffect,the
Class'sotherexpensesandtotaloperatingexpenses,asapercentageof
averagenetassets,wouldbeestimatedtobe0.25%and1.00%,respectively.
EXAMPLEOFEFFECTOFFUNDEXPENSES
Thefollowingtableillustratestheexpensesonahypothetical$1,000
investmentinU.S.GovernmentPortfoliounderitscurrentexpenses,andin
TreasuryFundCapitalReservesClassundertheproformaexpenses,
calculatedattherates(afterreimbursement)statedabove,assuminga5%
annualreturn.
After1YearAfter3YearsAfter5YearsAfter10Years
U.S.GovernmentPortfolio$10$32$55$121
TreasuryFundCapital$9$29$50$111
ReservesClass
Thisexampleassumesthatalldividendsandotherdistributionsare
reinvestedandthatthepercentageamountslistedunderAnnualFund
OperatingExpensesremainthesameintheyearsshown.Theseexamples
illustratetheeffectofexpenses,butarenotmeanttosuggestactualor
expectedcosts,whichmayvary.Theassumedreturnof5%isnota
predictionof,anddoesnotrepresent,theactualorexpectedperformance
ofeitherFund/Class.Longtermshareholdersmaypaymorethanthe
economicequivalentofthemaximumsaleschargespermittedbytheNational
AssociationofSecuritiesDealers,Inc.dueto12b1fees.
ADDITIONALEXPENSEINFORMATION
DISTRIBUTOR.NFSCdistributesU.S.GovernmentPortfolio'sshares.
FidelityDistributorsCorporation(FDC),anaffiliateofFMR,currently
distributesTreasuryFund'ssharesandwilldistributeTreasuryFund
CapitalReservesClasssharesfollowingtheReorganization.
Asstatedabove,underaDistributionandServicePlanadoptedpursuantto
Rule12b1underthe1940Act,U.S.GovernmentPortfoliocurrentlypays
NFSCamonthlydistributionfeeatanannualrateof0.35%oftheFund's
averagenetassets.Inaddition,theU.S.GovernmentPortfolioplan
specificallyrecognizesthatFMRmaymakepaymentsfromitsmanagementfee
revenue,pastprofits,orotherresourcestocompensatefinancial
intermediaries(includingNFSC)forprovidingdistributionrelatedservices
fortheFund.TheBoardofTrusteesofDailyMoneyFundhasauthorizedFMR
tomakesuchpaymentsofupto0.25%oftheFund'saveragenetassets
throughoutthemonthbaseduponthelevelofshareholdersupportand
15/101
12/24/2014
distributionservicesprovided.
IfshareholdersapprovetheReorganization,TreasuryFundCapital
ReservesClassshareswillbesubjecttoaDistributionandServicePlan
adoptedpursuanttoRule12b1underthe1940Act.Undertheplan,Capital
ReservesClasswillbeauthorizedtopayFDCamonthlydistributionfeeas
compensationforitsservicesandexpensesinconnectionwiththe
distributionofCapitalReservesClasssharesofTreasuryFund.Capital
ReservesClasswillpayFDCamonthlydistributionfeeatanannualrateof
0.50%ofitsaveragenetassetsthroughoutthemonth.FDCmaycompensate
intermediariesthatprovideshareholdersupportservices,engageinthe
saleofCapitalReservesClassshares,orpaydistributionexpensesatan
annualrateofupto0.50%oftheaveragenetassetstheymaintain.The
CapitalReservesClassplanwillspecificallyrecognizethatFMRmaymake
paymentsfromitsmanagementfeerevenue,pastprofits,orotherresources
toFDCforexpensesincurredinconnectionwiththedistributionofCapital
ReservesClassshares,includingpaymentsmadetointermediariesthat
provideshareholdersupportservicesorengageinthesaleofCapital
ReservesClassshares.TheBoardofTrusteesofNewburyStreetTrusthas
authorizedsuchpaymentstointermediariesatanannualrateofupto0.10%
oftheaveragenetassetstheymaintain.
IndependentoftheCapitalReservesClassplan,intermediariesthat
maintainanaveragebalanceof$10millionormoreinasingleomnibus
accountmayreceiveanadditionalrecordkeepingfeeofupto0.15%ofthe
averagenetassetstheymaintain.Therecordkeepingfeewillbepaidby
FMRoritsaffiliates,notbyTreasuryFund,andwillnotbepaidfor
distributionservices.
SUBADVISER.Currently,FMRTexasInc.,locatedinIrving,Texas,iseach
Fund'ssubadviserandhasprimaryresponsibilityformanagingits
investments.FMRisresponsibleforprovidingothermanagementservices.
ForFMRTexas'sservicestoU.S.GovernmentPortfolio,FMRpaysFMRTexas
50%ofitsmanagementfee(beforeexpensereimbursementsbutafterpayments
madebyFMRpursuanttotheFund'sDistributionandServicePlan).ForFMR
Texas'sservicestoTreasuryFund,FMRpaysFMRTexas50%ofitsmanagement
fee(beforeexpensereimbursements).
FORMSOFORGANIZATION
U.S.GovernmentPortfolioisadiversifiedfundofDailyMoneyFund,an
openendmanagementinvestmentcompanyorganizedasaDelawarebusiness
trustonSeptember29,1993.DailyMoneyFundisauthorizedtoissuean
unlimitednumberofsharesofbeneficialinterest.U.S.Government
Portfolioisauthorizedtoissueoneclassofshares.
TreasuryFundisadiversifiedfundofNewburyStreetTrust,anopenend
managementinvestmentcompanyorganizedasaDelawarebusinesstruston
December30,1991.BeforeMay30,1997,TreasuryFundwasaseriesofa
differenttrust,DailyMoneyFund,andwasknownasDailyMoneyFund:U.S.
TreasuryPortfolio.Also,beforeMay30,1997,NewburyStreetTrustwas
knownasDailyTaxExemptMoneyFund.EffectiveMay30,1997,DailyMoney
Fund:U.S.TreasuryPortfoliowasreorganizedintoanewlyestablished
separateseriesofDailyTaxExemptMoneyFund,pursuanttoanAgreement
andPlanofReorganizationapprovedonMay9,1997,byshareholdersof
DailyMoneyFund:U.S.TreasuryPortfolio.Inconnectionwiththat
reorganization,DailyMoneyFund:U.S.TreasuryPortfoliowasrenamed
TreasuryFundandDailyTaxExemptMoneyFundwasrenamedNewburyStreet
Trust.NewburyStreetTrustisauthorizedtoissueanunlimitednumberof
sharesofbeneficialinterest.TreasuryFundiscurrentlyauthorizedto
issuethreeclassesofsharesdesignatedTreasuryFundDailyMoneyClass
(formerlyDailyMoneyFund:U.S.TreasuryPortfolioInitialClass)
shares,whicharecurrentlyoutstanding,TreasuryFundAdvisorBClass
(formerlyDailyMoneyFund:U.S.TreasuryPortfolioClassB)shares,
whichalsoarecurrentlyoutstanding,andTreasuryFundCapitalReserves
Classshares,whichwillbeissuedinitiallytoU.S.GovernmentPortfolio
shareholdersinconnectionwiththeReorganization.Aseparatefilingwith
theSecuritiesandExchangeCommission(theSEC)willbemadepriortothe
ClosingDateoftheReorganizationforthepurposeofregisteringTreasury
FundCapitalReservesClasssharesforsale.
BecauseU.S.GovernmentPortfolioandTreasuryFundareseriesofDelaware
businesstrusts,organizedundersubstantiallysimilarTrustInstruments,
therightsofthesecurityholdersofU.S.GovernmentPortfoliounderstate
lawandthegoverningdocumentsareexpectedtoremainunchangedafterthe
Reorganization,exceptwithregardtoshareholdervotingrights.
ShareholdervotingrightsforU.S.GovernmentPortfolioarebasedonthe
numberofFundsharesowned(sharebasedvoting),whereasshareholder
votingrightsforTreasuryFundarebasedonthetotaldollarinterestin
TreasuryFund(dollarbasedvoting).IfU.S.GovernmentPortfolio
shareholdersapprovetheReorganization,theirvotingrightswouldnotbe
affectedbecauseimmediatelyfollowingtheReorganizationNewburyStreet
Trustwillcompriseonlymoneymarketfunds,whicharemanagedtomaintain
astable$1.00shareprice.However,iffundswithfluctuatingnetasset
valuespershareareaddedtoNewburyStreetTrustinthefuture,relative
votingrightswouldbeaffected.Inthatevent,whilethedifferences
betweentheFunds'votingrightswouldhavenobearingonmattersaffecting
onlyonefundofthetrust,onmattersrequiringtrustwidevotesinwhich
allfundsofthetrustparticipate,dollarbasedvotingwouldprovide
shareholderswithvotingpowerthatisproportionatetotheireconomic
16/101
12/24/2014
interest,whereassharebasedvotingmayprovideshareholderswhoown
sharesofafundwithalowernetassetvaluepershare(NAV)thanother
fundsinthetrustwithadisproportionateabilitytoaffectatrustwide
voterelativetoshareholdersofotherfundsinthetrust.IfU.S.
GovernmentPortfolioshareholdersapprovetheReorganization,theirvoting
rightswillchangetoreflectthoseofTreasuryFundshareholders.For
moreinformationregardingshareholderrights,refertothesectionofeach
Fund'sStatementofAdditionalInformationcalled"Descriptionofthe
Trust."
TheFundshaveessentiallythesameinvestmentobjective.U.S.Government
Portfolioseeksashighalevelofcurrentincomeasisconsistentwiththe
preservationofcapitalandliquiditybyinvestinginmoneymarket
instruments.TreasuryFundseekstoobtainashighalevelofcurrent
incomeasisconsistentwiththepreservationofcapitalandliquidity.
InvestmentsintheFundsareneitherinsurednorguaranteedbytheU.S.
Government,andtherecanbenoassurancethataFundwillmaintaina
stable$1.00shareprice.
U.S.GovernmentPortfolioinvestsonlyinU.S.Governmentsecuritiesthat
arebackedbythefullfaithandcreditoftheUnitedStatesandin
repurchaseagreementsforthesesecurities.U.S.Governmentsecuritiesare
debtinstrumentsissuedorguaranteedbytheU.S.Treasuryorbyanagency
orinstrumentalityoftheU.S.Government.TreasuryFundinvestsonlyin
U.S.Treasurysecurities,includingbills,notes,andbonds,andin
repurchaseagreementsforthesesecurities.Theforegoingpoliciesare
nonfundamentaloperatingpoliciesofeachFundandmaybechangedonly
upon90days'noticetoshareholders.Inaddition,TreasuryFundcurrently
doesnotenterintoreverserepurchaseagreements.U.S.Government
Portfoliomayenterintoreverserepurchaseagreementsbuthasdonesoonly
infrequentlyoverthepastseveralyears.
AlthoughU.S.GovernmentPortfolioispermittedtoinvestinU.S.
GovernmentsecuritiesotherthanU.S.Treasurysecurities,itcurrently
doesnotown,nordoesitanticipatepurchasing,anyportfoliosecurities
thatwouldbeconsideredineligibleinvestmentsforTreasuryFund.
Therefore,noportfolioadjustmentsareanticipatedinconnectionwiththe
Reorganization.However,intheeventthatthesaleofeitherFund's
assetsbecomesnecessarypriortotheeffectivedateoftheReorganization,
anytransactioncostsassociatedwithsuchadjustmentswillbebornebythe
individualFundthatincurredthem.
TheinvestmentobjectiveofeachFundisfundamentalandmaynotbe
changedwithouttheapprovalofavoteofatleastamajorityofthe
outstandingvotingsecuritiesoftheFund.Therecanbenoassurancethat
aFundwillachieveitsobjective.Withtheexceptionoffundamental
policies,investmentpoliciesoftheFundscanbechangedwithout
shareholderapproval.ThedifferencesbetweentheFundsdiscussedbelow,
exceptasnoted,couldbechangedwithoutavoteofshareholders.
DIVERSIFICATION.Asamatteroffundamentalpolicy,eachFundmaynot,
withrespectto75%ofitstotalassets,purchasethesecuritiesofany
issuer(otherthansecuritiesissuedorguaranteedbytheU.S.Government
oranyofitsagenciesorinstrumentalitiesor(TreasuryFundonly)
securitiesofotherinvestmentcompanies)if,asaresult,(a)morethan5%
oftheFund'stotalassetswouldbeinvestedinthesecuritiesofthat
issuer,or(b)theFundwouldholdmorethan10%oftheoutstandingvoting
securitiesofthatissuer.
BORROWING.Asamatteroffundamentalpolicy,eachFundmayborrowmoney
onlyfortemporaryoremergencypurposesandengageinreverserepurchase
agreementsforanypurpose,butnotinanamountexceeding331/3%ofits
totalassets(includingtheamountborrowed)lessliabilities(otherthan
borrowings).Asamatterofnonfundamentalpolicy,eachFundmayborrow
moneyonlyfrombanksorotherfundsadvisedbyFMRoranaffiliateofFMR,
or(U.S.GovernmentPortfolioonly)byengaginginreverserepurchase
agreementswithanyparty,andeachFundmaymakeadditionalinvestments
whileborrowingsareoutstanding.TreasuryFundcurrentlydoesnotenter
intoreverserepurchaseagreements.
LENDING.Asamatteroffundamentalpolicy,eachFundmaynotlendany
securityormakeanyotherloan,exceptthroughthepurchaseofdebt
securitiesorrepurchaseagreements,ifasaresultmorethan331/3%of
itstotalassetswouldbelenttootherparties.Asamatterof
nonfundamentalpolicy,withtheexceptionofpurchasingdebtsecurities
andenteringintorepurchaseagreements,neitherFundcurrentlyintendsto
makeloans.
OTHERINVESTMENTPOLICIES.EachFundmayinvestupto10%ofitsassets
inilliquidsecurities.Consistentwithitsinvestmentobjectiveand
policies,eachFundalsomayenterintowhenissuedandforwardpurchaseor
saletransactionsandmayinvestinvariableandfloatingratesecurities,
strippedsecurities,andsecuritieswithputfeatures.NeitherFund
currentlyintendstopurchasefuturescontractsoroptionsonfutures
contracts.WithrespecttoeachFund,thisoperatingpolicymaybechanged
onlywiththeTrustees'approvaland60days'noticetoshareholders.
Forcashmanagementpurposes,eachFundmayinvestinrepurchase
agreementsand(pursuanttoanexemptiveordergrantedbytheSEC)ina
moneymarketfundavailableonlytofundsandaccountsmanagedbyFMRor
17/101
12/24/2014
itsaffiliates,whosegoalistoseekahighlevelofcurrentincomewhile
maintainingastable$1.00shareprice.However,neitherFundcurrently
intendstoinvestinamoneymarketfund.
Inaddition,theBoardofTrusteesofeachFundrecentlyapprovedthe
eliminationofcertainnonfundamentalpolicies,whichwereidenticalfor
bothFunds,regardingaFund'sinvestmentsin(i)thesecuritiesofother
investmentcompanies,(ii)thesecuritiesofunseasonedissuers,and(iii)
oil,gas,andmineralexplorationprograms.Thesenonfundamentalpolicies
wereoriginallyadoptedwithrespecttoeachFundsolelyinresponseto
statelawrequirements,whichwereinadditionto,andinmanycaseswere
morerestrictivethan,federallawrequirements.Thesestatelaw
requirementsarenolongerapplicable.
Asstatedabove,formoreinformationabouttherisksandrestrictions
associatedwiththesepolices,seetheFunds'Prospectusesand,foramore
detaileddiscussionoftheFunds'investments,seetheirStatementsof
AdditionalInformation,whichareincorporatedhereinbyreference.
OPERATIONSOFTREASURYFUNDFOLLOWINGTHEREORGANIZATION
FMRdoesnotexpectTreasuryFundtoreviseitsinvestmentobjectiveor
policiesasaresultoftheReorganization.Inaddition,FMRdoesnot
anticipatesignificantchangestoTreasuryFund'smanagementortoagents
thatprovideTreasuryFundwithservices.Specifically,theTrusteesand
officers,theinvestmentadviserandsubadviser,thedistributor,and
otheragentswillcontinuetoserveTreasuryFundintheircurrent
capacities.
Asexplainedabove,althoughU.S.GovernmentPortfolioispermittedto
investinU.S.GovernmentsecuritiesotherthanU.S.Treasurysecurities,
itcurrentlydoesnotown,nordoesitanticipatepurchasing,anyportfolio
securitiesthatwouldbeconsideredineligibleinvestmentsforTreasury
Fund.Therefore,noportfolioadjustmentsareanticipatedinconnection
withtheReorganization.However,intheeventthatthesaleofeither
Fund'sassetsbecomesnecessarypriortotheeffectivedateofthe
Reorganization,anytransactioncostsassociatedwithsuchadjustmentswill
bebornebytheindividualFundthatincurredthem.
PURCHASESANDREDEMPTIONS
TreasuryFundiscurrentlyauthorizedtoissuethreeclassesofshares
designatedTreasuryFundDailyMoneyClassshares,whicharecurrently
outstanding,TreasuryFundAdvisorBClassshares,whichalsoare
currentlyoutstanding,andTreasuryFundCapitalReservesClassshares,
whichwillbeissuedinitiallytoU.S.GovernmentPortfolioshareholdersin
connectionwiththeReorganization.U.S.GovernmentPortfolioiscurrently
authorizedtoissueonlyoneclassofshares.
BothU.S.GovernmentPortfolioandTreasuryFundCapitalReservesClass
requireaminimuminitialinvestmentof$1,000,aminimumsubsequent
investmentof$250,andaminimumaccountbalanceof$500.BothU.S.
GovernmentPortfoliosharesandTreasuryFundCapitalReservesClass
sharesaresoldwithoutasalescharge.
U.S.GovernmentPortfolioisopenforbusinessanditsNAVisnormally
calculatedeachdaythatboththeFederalReserveBankofNewYork(New
YorkFed)andtheNewYorkStockExchange(NYSE)areopen.TreasuryFund
isopenforbusinessandtheNAVofCapitalReservesClasssharesis
normallycalculatedeachdaythattheNYSEisopen.Thefollowingholiday
closingshavebeenscheduledfor1997:NewYear'sDay,MartinLutherKing's
Birthday,Washington'sBirthday,GoodFriday,MemorialDay,Independence
Day,LaborDay,ColumbusDay(NewYorkFedonly),VeteransDay(NewYork
Fedonly),ThanksgivingDay,andChristmasDay.AlthoughFMRexpectsthe
sameholidayscheduletobeobservedinthefuture,theNewYorkFedorthe
NYSEmaymodifyitsholidayscheduleatanytime.
BothFundsaremanagedtokeeptheirsharepricesstableat$1.00.Both
U.S.GovernmentPortfoliosharesandTreasuryFundCapitalReservesClass
sharesarepurchasedatthenextsharepricecalculatedafteranorderis
receivedandaccepted.Sharepriceisnormallycalculatedat2:00p.m.and
4:00p.m.Easterntime.Sharesmaybepurchasedbymail,bywire,orby
exchangefromanotherFidelityfund.NeitherU.S.GovernmentPortfolionor
TreasuryFundCapitalReservesClassimposesafeeforwirepurchases;
however,ifsharesarepurchasedthroughaninvestmentprofessional,the
investmentprofessionalmayimposeafeeforwirepurchases.Shares
purchasedbefore2:00p.m.Easterntimeareentitledtodividendsdeclared
thatday.Sharespurchasedafter2:00p.m.Easterntimebegintoearn
dividendsonthefollowingbusinessday.
EachFundreservestherighttorejectanyspecificpurchaseorder,
includingcertainpurchasesbyexchange.OnanydaythattheNewYorkFed
(U.S.GovernmentPortfolioonly)ortheNYSEclosesearly,theprincipal
governmentsecuritiesmarketscloseearly(suchasondaysinadvanceof
holidaysgenerallyobservedbyparticipantsinthemarkets),oras
permittedbytheSEC,eachFundreservestherighttoadvancethetimeon
thatdaybywhichpurchaseandredemptionordersmustbereceived.Tothe
extentthatportfoliosecuritiesaretradedinothermarketsondayswhen
theNewYorkFed(U.S.GovernmentPortfolioonly)ortheNYSEisclosed,a
Fund's/Class'ssharepricemaybeaffectedondayswhenshareholdersdonot
haveaccesstotheFundtopurchaseorredeemshares.
BothFundsvaluetheirportfoliosecuritiesonthebasisofamortized
cost.Thismethodminimizestheeffectofchangesinasecurity'smarket
valueandhelpstheFundsmaintainstable$1.00shareprices.
18/101
12/24/2014
FidelityInvestmentsInstitutionalOperationsCompany,Inc.,anaffiliate
ofFMR,performstransferagency,dividenddisbursing,andshareholder
servicesforthesharesofeachFund.FidelityServiceCompany,Inc.,also
anaffiliateofFMR,calculatestheNAVanddividendsforthesharesof
eachFundandmaintainsthegeneralaccountingrecordsforeachFund.NFSC
distributesU.S.GovernmentPortfolio'sshares.FDCcurrentlydistributes
TreasuryFund'ssharesandwilldistributeTreasuryFundCapitalReserves
ClasssharesfollowingtheReorganization.
BothU.S.GovernmentPortfoliosharesandTreasuryFundCapitalReserves
Classsharesmayberedeemedonanybusinessdayattheirrespectiveshare
price.Sharesareredeemedatthenextsharepricecalculatedafteran
orderisreceivedandaccepted.Asstatedabove,sharepriceisnormally
calculatedat2:00p.m.and4:00p.m.Easterntime.Sharesredeemedbefore
2:00p.m.Easterntimedonotreceivethedividenddeclaredonthedayof
redemption.Sharesredeemedafter2:00p.m.Easterntimedoreceivethe
dividenddeclaredonthedayofredemption.
BothU.S.GovernmentPortfoliosharesandTreasuryFundCapitalReserves
Classsharesmayberedeemedbymail,bytelephone,orbywire.BothU.S.
GovernmentPortfolioandTreasuryFundCapitalReservesClassalsooffer
checkwritingprivileges;theminimumamountforacheckis$500.Neither
U.S.GovernmentPortfolionorTreasuryFundCapitalReservesClass
chargesafeeforwireredemptions;however,ifsharesaresoldthroughan
investmentprofessional,theinvestmentprofessionalmaychargeafeefor
wireredemptions.RedemptionproceedswillbewiredviatheFederal
ReserveWireSystemtotheredeemingshareholder'sbankaccountofrecord.
IfaFund'stransferagentreceivesaredemptionrequestbefore2:00p.m.
Easterntime,redemptionproceedswillnormallybewiredonthatday.Ifa
Fund'stransferagentreceivesaredemptionrequestafter2:00p.m.Eastern
time,redemptionproceedswillnormallybewiredonthefollowingbusiness
day.
EachFundreservestherighttotakeuptosevendaystopayredemption
proceedsifmakingimmediatepaymentwouldadverselyaffecttheFund.In
addition,eachFundmaywithholdredemptionproceedsuntilitisreasonably
assuredthatinvestmentscreditedtotheaccounthavebeenreceivedand
collected.WhentheNewYorkFed(U.S.GovernmentPortfolioonly)orthe
NYSEisclosed(orwhentradingisrestricted)foranyreasonotherthan
itscustomaryweekendorholidayclosings,orunderanyemergency
circumstancesasdeterminedbytheSECtomeritsuchaction,eachFundmay
suspendredemptionorpostponepaymentdates.
InthecaseofbothU.S.GovernmentPortfolioandTreasuryFundCapital
ReservesClass,ifashareholder'saccountbalancefallsbelow$500,the
shareholderwillbegiven30days'noticetoreestablishtheminimum
balance.Iftheshareholderdoesnotincreasethebalance,Fidelity
reservestherighttoclosetheshareholder'saccountandsendtheproceeds
totheshareholder.Shareswillberedeemedattheirsharepriceonthe
daytheaccountisclosed.
IftheReorganizationisapproved,thepurchaseandredemptionpolicies
thatcurrentlyapplytoU.S.GovernmentPortfolioshareswillapplyto
TreasuryFundCapitalReservesClassshares.U.S.GovernmentPortfolio
shareholdersmayredeemtheirshares,orexchangetheirsharesforshares
ofanyotheravailableFidelityfund,throughtheClosingDate.
EXCHANGES
U.S.GovernmentPortfoliosharesmaybeexchangedforsharesofanyother
Fidelityfundavailableintheshareholder'sstate.Inaddition,U.S.
GovernmentPortfoliosharesmaybeacquiredthroughanexchangeofshares
ofotherFidelityfunds.Theexchangeprivilegesandrestrictionsthat
currentlyapplytoU.S.GovernmentPortfolioshareswillapplytoTreasury
FundCapitalReservesClasssharesfollowingtheReorganization.Refer
toU.S.GovernmentPortfolio'sProspectusformoreinformationregarding
howtoexchangeshares.
DIVIDENDSANDOTHERDISTRIBUTIONS
EachFunddistributessubstantiallyallofitsnetinvestmentincomeand
capitalgains,ifany,toshareholderseachyear.EachFunddeclaresincome
dividendsdailyandpaysthemmonthly.EachFundautomaticallyreinvests
dividendandcapitalgaindistributionsinadditionalsharesoftheFund
(or,inthecaseofTreasuryFund,sharesofthesameClassoftheFund)
unlessashareholderrequeststhatdividendsandotherdistributionsbe
paidincash.
OnorbeforetheClosingDate,U.S.GovernmentPortfoliowilldeclareone
ormoredividendsordistributionswhich,togetherwithallsuchprevious
dividendsanddistributionsattributabletoitscurrenttaxableyear,will
havetheeffectofdistributingsubstantiallyallofitsinvestmentcompany
taxableincomeandnetrealizedcapitalgains,ifany,inordertomaintain
itstaxstatusasaregulatedinvestmentcompany.
SHAREHOLDERSERVICES
BothU.S.GovernmentPortfolioandTreasuryFundCapitalReservesClass
offersubaccountingandspecialservicesforinstitutionsthatwishto
openmultipleaccounts(amasteraccountandsubaccounts).RefertoU.S.
GovernmentPortfolio'sProspectusformoreinformationregardingthese
services.
FEDERALINCOMETAXCONSEQUENCESOFTHEREORGANIZATION
EachFundhasreceivedanopinionofitscounsel,Kirkpatrick&Lockhart
LLP,thattheReorganizationwillconstituteataxfreereorganization
19/101
12/24/2014
withinthemeaningofSection368(a)(1)(C)oftheInternalRevenueCodeof
1986,asamended(theCode).Accordingly,nogainorlosswillbe
recognizedbytheFundsortheirshareholdersasaresultofthe
Reorganization.Pleaseseethesectionentitled"FederalIncomeTax
Considerations"formoreinformation.
U.S.GovernmentPortfolioandTreasuryFundhadcapitallosscarryforwards
forfederaltaxpurposesaggregatingapproximately$53,000and$421,000as
ofJuly31,1996andOctober31,1996,respectively.Undercurrentfederal
taxlaw,TreasuryFundmaybelimitedtousingonlyaportion,ifany,of
thecapitallosscarryforwardtransferredbyU.S.GovernmentPortfolioat
thetimeoftheReorganization.ThereisnoassurancethatTreasuryFund
willbeabletorealizesufficientcapitalgainstouseitscapitalloss
carryforwardaswellasaportion,ifany,ofU.S.GovernmentPortfolio's
capitallosscarryforward,beforetheyexpire.Thecapitalloss
carryforwardattributabletoU.S.GovernmentPortfoliowillexpirebetween
July31,2001andJuly31,2003.Thecapitallosscarryforwardattributable
toTreasuryFundwillexpireonOctober31,2001.
BecauseeachFundisamoneymarketfund,eachFundmustcomplywith
federalregulatoryrequirementsapplicabletoallmoneymarketfunds
concerningthequalityandmaturityofitsinvestments.Federal
regulationslimitmoneymarketfundinvestmentstohighqualitysecurities.
Tobehighquality,asecuritymustberatedinaccordancewithapplicable
rulesinoneofthetwohighestcategoriesforshorttermsecuritiesbyat
leasttwonationallyrecognizedratingservices(orbyone,ifonlyone
ratingservicehasratedthesecurity),or,ifunrated,judgedtobeof
equivalentqualitybyFMR.Thematurity(calculatedaccordingto
applicableregulations)ofeachinvestmentcannotexceed397days,anda
moneymarketfund'sdollarweightedaveragematuritycannotexceed90days.
Theserequirements,coupledwitheachFund'semphasisonhighqualityU.S.
Governmentsecurities,meanthattheFundshavesubstantiallysimilar
levelsofrisk.
TheFundspursueessentiallythesameinvestmentobjectiveandfollow
similarinvestmentpolicies(see"InvestmentObjectivesandPolicies"on
page11).U.S.GovernmentPortfolioinvestsonlyinU.S.Government
securitiesthatarebackedbythefullfaithandcreditoftheUnited
Statesandinrepurchaseagreementsforthesesecurities.U.S.Government
securitiesaredebtinstrumentsissuedorguaranteedbytheU.S.Treasury
orbyanagencyorinstrumentalityoftheU.S.Government.TreasuryFund
investsonlyinU.S.Treasurysecurities,includingbills,notes,and
bonds,andinrepurchaseagreementsforthesesecurities.Agency
securitiesaregenerallyconsideredmoreriskythanU.S.Treasury
securities.U.S.Treasurysecuritiesarebackedbythefullfaithand
creditoftheUnitedStates.Althoughnotallagencysecuritiesarebacked
bythefullfaithandcreditoftheUnitedStates,U.S.Government
Portfolio'spolicyoflimitingitsinvestmentsinagencysecuritiesto
thosethatarebackedbythefullfaithandcreditoftheUnitedStates
minimizestherelativelygreaterriskassociatedwithagencysecurities.
Inaddition,TreasuryFundiscurrentlyratedAaaandAAAmbyMoody's
InvestorServiceandStandard&Poor's,respectively,andthusgenerally
seekstomaintainanaveragematurityof60daysorless.U.S.Government
Portfolioisnotaratedfund,althoughitsaveragematurityiscurrently
lessthanthe60daymaximumforAaa/AAAmratedfunds.
AlthougheachFundseekstomaintainastable$1.00shareprice,each
Fund'sinvestmentincomeisbasedontheincomeearnedonthesecuritiesit
holds,lessexpensesincurred.Thus,eachFund'sinvestmentincomemay
fluctuateinresponsetochangesinsuchexpensesorchangesininterest
rates.
TOAPPROVEANAGREEMENTANDPLANOFREORGANIZATIONBETWEENU.S.GOVERNMENT
PORTFOLIOANDTREASURYFUND
REORGANIZATIONPLAN
ThetermsandconditionsunderwhichtheReorganizationmaybeconsummated
aresetforthintheAgreement.SignificantprovisionsoftheAgreementare
summarizedbelow;however,thissummaryisqualifiedinitsentiretyby
referencetotheAgreement,acopyofwhichisattachedasExhibit1to
thisProxyStatement.
TheAgreementcontemplates(a)TreasuryFundacquiringasoftheClosing
DatealloftheassetsofU.S.GovernmentPortfolioinexchangesolelyfor
CapitalReservesClassSharesandtheassumptionbyTreasuryFundofU.S.
GovernmentPortfolio'sliabilities;and(b)thedistributionofCapital
ReservesClassSharestotheshareholdersofU.S.GovernmentPortfolioas
providedforintheAgreement.
TheassetsofU.S.GovernmentPortfoliotobeacquiredbyTreasuryFund
includeallcash,cashequivalents,securities,receivables(including
interestordividendsreceivables),claims,chosesinaction,andother
propertyownedbyU.S.GovernmentPortfolio,andanydeferredorprepaid
expensesshownasanassetonthebooksofU.S.GovernmentPortfolioonthe
ClosingDate.TreasuryFundwillassumefromU.S.GovernmentPortfolioall
liabilities,debts,obligations,anddutiesofU.S.GovernmentPortfolioof
whateverkindornature,whetherabsolute,accrued,contingent,or
otherwise,whetherornotarisingintheordinarycourseofbusiness,
whetherornotdeterminableontheClosingDate,andwhetherornot
20/101
12/24/2014
specificallyreferredtointheAgreement;provided,however,thatU.S.
GovernmentPortfoliowilluseitsbestefforts,totheextentpracticable,
todischargeallofitsknownliabilitiespriortotheClosingDate,other
thanliabilitiesincurredintheordinarycourseofbusiness.Treasury
FundwilldeliverCapitalReservesClassSharestoU.S.Government
Portfolio,whichsharesU.S.GovernmentPortfoliowillthendistributeto
itsshareholderssothateachU.S.GovernmentPortfolioshareholderwill
receivethenumberoffullandfractionalCapitalReservesClassShares
equaltothenumberoffullandfractionalsharesofU.S.Government
PortfolioheldbysuchshareholderasoftheClosingDate.
ThevalueofU.S.GovernmentPortfolio'sassetstobeacquiredbyTreasury
Fund,theamountofU.S.GovernmentPortfolio'sliabilitiestobeassumed
byTreasuryFund,andthesharepriceofaCapitalReservesClassShare
willbedeterminedasofthecloseofbusiness(4:00p.m.Easterntime)of
therespectiveFundontheClosingDate.Portfoliosecuritieswillbe
valuedonthebasisofamortizedcost.Thistechniqueinvolvesinitially
valuinganinstrumentatitscostasadjustedforamortizationofpremium
oraccretionofdiscountratherthanatitscurrentmarketvalue.The
amortizedcostvalueofaninstrumentmaybehigherorlowerthantheprice
aFundwouldreceiveifitsoldtheinstrument.IftheBoardofTrustees
ofDailyMoneyFundandtheBoardofTrusteesofNewburyStreetTrust
believethatadeviationfromaFund'samortizedcostpersharemayresult
indilutionorotherunfairresultstoshareholders,theBoardshaveagreed
totakesuchcorrectiveaction,ifany,astheydeemappropriateto
eliminateorreduce,totheextentreasonablypracticable,thedilutionor
unfairresults.
AsoftheClosingDate,U.S.GovernmentPortfoliowilldistributetoits
shareholdersofrecordtheCapitalReservesClassSharesitreceived,so
thateachU.S.GovernmentPortfolioshareholderwillreceivethenumberof
fullandfractionalsharesofU.S.GovernmentPortfolioheldbysuch
shareholderontheClosingDate;U.S.GovernmentPortfoliowillbe
liquidatedassoonaspracticablethereafter.Suchdistributionwillbe
accomplishedbyopeningaccountsonthebooksofTreasuryFundinthenames
oftheU.S.GovernmentPortfolioshareholdersandbytransferringthereto
CapitalReservesClassShares.EachU.S.GovernmentPortfolioshareholder's
accountshallbecreditedwiththerespectivePRORATAnumberoffulland
fractional(roundedtothethirddecimalplace)CapitalReservesClass
Sharesduethatshareholder.TreasuryFundshallnotissuecertificates
representingitssharesinconnectionwithsuchexchange.
Accordingly,immediatelyaftertheReorganization,eachformerU.S.
GovernmentPortfolioshareholderwillownthenumberofCapitalReserves
ClassSharesequaltothenumberofthatshareholder'ssharesofU.S.
GovernmentPortfolioimmediatelypriortotheReorganization.Theshare
priceofTreasuryFundwillbeunchangedbythetransaction.Thus,the
Reorganizationwillnotresultinthedilutionofanyshareholderinterest.
AnytransfertaxespayableuponissuanceofCapitalReservesClassShares
inanameotherthanthatoftheregisteredholderofthesharesonthe
booksofU.S.GovernmentPortfolioasofthattimeshallbepaidbythe
persontowhomsuchsharesaretobeissuedasaconditionofsuch
transfer.AnyreportingresponsibilityofU.S.GovernmentPortfolioisand
willcontinuetobeitsresponsibilityuptoandincludingtheClosingDate
andsuchlaterdateonwhichU.S.GovernmentPortfolioisliquidated.
ItisexpectedthatFMRwillbearthecostoftheReorganization,
includingprofessionalfees,expensesassociatedwiththefilingof
registrationstatements,andthecostofsolicitingproxiesforthe
Meeting,whichwillconsistprincipallyofprintingandmailing
prospectusesandproxystatements,togetherwiththecostofany
supplementalsolicitation.However,theremaybesometransactioncosts
associatedwithportfolioadjustmentstoU.S.GovernmentPortfoliodueto
theReorganizationwhichoccurpriortotheClosingDatewhichwillbe
bornebyU.S.GovernmentPortfolio.Anytransactioncostsassociatedwith
portfolioadjustmentsduetotheReorganizationwhichoccurafterthe
ClosingDatewillbebornebyTreasuryFund.AFundmayrecognizea
taxablegainorlossonthedispositionofsecuritiespursuanttothese
portfolioadjustments.Seethesectionentitled"Reasonsforthe
Reorganization."
TheconsummationoftheReorganizationissubjecttoanumberof
conditionssetforthintheAgreement,someofwhichmaybewaivedbya
Fund.Inaddition,theAgreementmaybeamendedinanymutuallyagreeable
manner,exceptthatnoamendmentthatmayhaveamateriallyadverseeffect
ontheshareholders'interestsmaybemadesubsequenttotheMeeting.
REASONSFORTHEREORGANIZATION
TheBoardsofTrustees(theBoards)ofDailyMoneyFundandNewburyStreet
TrusthavedeterminedthattheReorganizationisinthebestinterestsof
theshareholdersoftheFundsandthattheReorganizationwillnotresult
inadilutionoftheinterestsoftheshareholdersofeitherFund.
InconsideringtheReorganization,theBoardsconsideredanumberof
factors,includingthefollowing:
(1)thecompatibilityoftheFunds'investmentobjectivesandpolicies;
(2)thehistoricalperformanceoftheFunds;
(3)therelativeexpenseratiosoftheFunds;
(4)thecoststobeincurredbyeachFundasaresultofthe
21/101
12/24/2014
Reorganization;
(5)thetaxconsequencesoftheReorganization;
(6)therelativeassetsizesoftheFunds;
(7)theeliminationofduplicativefunds;
(8)theimpactofchangestotheinstitutionalmoneymarketproductlineon
theFundsandtheirshareholders;and
(9)thebenefitstoFMRandtoshareholdersoftheFunds.
FMRrecommendedtheReorganizationtotheBoardsatameetingofthe
BoardsonMarch20,1997.InrecommendingtheReorganization,FMRalso
advisedtheBoardsthattheFundshavegenerallycompatibleinvestment
objectivesandpolicies,withthematerialdifferencesnoted,andthatthe
Fundscurrentlyhavesimilarinvestmentstrategies,withthematerial
differencesnoted.
TheBoardsconsideredthatiftheReorganizationisapproved,former
shareholdersofU.S.GovernmentPortfoliowillreceiveTreasuryFund
CapitalReservesClassshares,whichwillpaya0.25%managementfeeanda
0.50%distributionfee.Thetotalmanagementanddistributionfeesof
0.75%tobepaidbyTreasuryFundCapitalReservesClasswillbe0.10%
lower,asapercentageofaveragenetassets,thanthetotalmanagementand
distributionfeesof0.85%currentlypaidbyU.S.GovernmentPortfolio.
FMRalsoinformedtheBoardsthatitwouldvoluntarilyagreetoreimburse
thetotaloperatingexpensesofTreasuryFundCapitalReservesClassto
theextentthatsuchexpenses(excludinginterest,taxes,brokerage
assets0.09%lowerthanU.S.GovernmentPortfolio's0.99%voluntary
expenselimitation.Inaddition,FMRinformedtheBoardsthatitexpected
topaythecostsassociatedwiththeReorganization,includingprofessional
feesandthecostsofproxysolicitation,underU.S.GovernmentPortfolio's
voluntaryexpenselimitation.FMRfurtherinformedtheBoardsthatalthough
U.S.GovernmentPortfoliowouldbearanycosts(asdescribedabove)
associatedwithportfolioadjustmentsmadeinconnectionwiththe
Reorganization,FMRbelievedthatsuchcostswouldbeminimalandwouldbe
counterbalancedbythereductioninthetotaloperatingexpensesthatU.S.
GovernmentPortfolioshareholderswouldpayasholdersofCapitalReserves
ClassShares.
TheBoardsalsoconsideredthatformershareholdersofU.S.Government
PortfoliowillreceivethenumberofCapitalReservesClassSharesequalto
thenumberoftheirsharesofU.S.GovernmentPortfolio.Inaddition,the
BoardsconsideredthattheFundsexpectedtoreceiveanopinionofcounsel
thattheReorganizationwouldnotresultinanygainorlossforfederal
incometaxpurposestoU.S.GovernmentPortfolioorTreasuryFundortothe
shareholdersofeitherFund.
Finally,theBoardsconsideredtheReorganizationinthecontextofa
generalgoalofreducingthenumberofduplicativefundsmanagedbyFMR.
Whilethereductionofduplicativefundsandfundswithlowerassets
potentiallywouldbenefitFMR,italsoshouldbenefitshareholdersby
increasingoperationalefficienciesand,thereby,loweringexpenseratios.
DESCRIPTIONOFTHESECURITIESTOBEISSUED
NewburyStreetTrustisregisteredwiththeSECasanopenendmanagement
investmentcompany.NewburyStreetTrustisauthorizedtoissuean
unlimitednumberofsharesofbeneficialinterestofseparateseries(no
parvaluepershare).TreasuryFundisoneofthreecurrentfundsofthe
trust.(ForhistoricalinformationregardingTreasuryFundandNewbury
StreetTrust,see"FormsofOrganization,"page10).NewburyStreet
Trust'strusteeshaveauthorizedthepublicofferingofthreeclassesof
sharesofTreasuryFunddesignatedTreasuryFundDailyMoneyClass
shares,whicharecurrentlyoutstanding,TreasuryFundAdvisorBClass
shares,whichalsoarecurrentlyoutstanding,andTreasuryFundCapital
ReservesClassshares,whichwillbeissuedinitiallytoU.S.Government
PortfolioshareholdersinconnectionwiththeReorganization.Aseparate
filingwiththeSECwillbemadepriortotheClosingDateforthepurpose
ofregisteringTreasuryFundCapitalReservesClasssharesforsale.
EachshareinaClassrepresentsanequalproportionateinterestin
TreasuryFundwitheachothershareofthatClass.SharesofTreasuryFund
entitletheirholderstoonevoteforeachdollarofnetassetvalueheld
(numberofsharesownedtimesthenetassetvaluepershare)anda
proportionatefractionalvoteforeachfractionaldollaramountheld,
exceptthateachClassofshareshasexclusivevotingrightsonmatters
pertainingtoitsplanofdistribution.Foradditionalinformation
regardingshareholdervotingrights,see"FormsofOrganization,"page10.
EachshareofeachClassofTreasuryFundisentitledtoparticipate
equallyindividendsandotherdistributionsandintheproceedsofany
liquidation,exceptthatdividendsofeachClassmaybeaffected
differentlybytheallocationofClassspecificexpenses.
NewburyStreetTrustdoesnotholdannualmeetingsofshareholders.There
willnormallybenomeetingsofshareholdersforthepurposeofelecting
TrusteesunlesslessthanamajorityoftheTrusteesholdingofficehave
beenelectedbyshareholders,atwhichtimetheTrusteestheninoffice
willcallashareholders'meetingfortheelectionofTrustees.Underthe
1940Act,shareholdersofrecordofatleasttwothirdsoftheoutstanding
sharesofaninvestmentcompanymayremoveatrusteebyvotescastin
personorbyproxyatameetingcalledforthatpurpose.TheTrusteesare
requiredtocallameetingofshareholdersforthepurposeofvotingupon
22/101
12/24/2014
thequestionofremovalofanyTrusteewhenrequestedinwritingtodoso
bytheshareholdersofrecordholdingatleast10%ofthetrust's
outstandingshares.
FEDERALINCOMETAXCONSIDERATIONS
TheexchangeofU.S.GovernmentPortfolio'sassetsforCapitalReserves
ClassSharesandtheassumptionoftheliabilitiesofU.S.Government
PortfoliobyTreasuryFundisintendedtoqualifyforfederalincometax
purposesasataxfreereorganizationundertheCode.Withrespecttothe
Reorganization,theparticipatingFundshavereceivedanopinionfrom
Kirkpatrick&LockhartLLP,counseltoU.S.GovernmentPortfolioand
TreasuryFund,substantiallytotheeffectthat:
(i)TheacquisitionbyTreasuryFundofalloftheassetsofU.S.
GovernmentPortfoliosolelyinexchangeforCapitalReservesClassShares
andtheassumptionbyTreasuryFundofU.S.GovernmentPortfolio's
liabilities,followedbythedistributionbyU.S.GovernmentPortfolioof
CapitalReservesClassSharestotheshareholdersofU.S.Government
PortfoliopursuanttotheliquidationofU.S.GovernmentPortfolioand
constructivelyinexchangefortheirU.S.GovernmentPortfolioshares,will
constituteareorganizationwithinthemeaningofsection368(a)(1)(C)of
theCode,andU.S.GovernmentPortfolioandTreasuryFundwilleachbe"a
partytoareorganization"withinthemeaningofsection368(b)ofthe
Code;
(ii)NogainorlosswillberecognizedbyU.S.GovernmentPortfolioupon
thetransferofallofitsassetstoTreasuryFundinexchangesolelyfor
CapitalReservesClassSharesandTreasuryFund'sassumptionofU.S.
GovernmentPortfolio'sliabilities,followedbyU.S.GovernmentPortfolio's
subsequentdistributionofthosesharestoitsshareholdersinliquidation
ofU.S.GovernmentPortfolio;
(iii)NogainorlosswillberecognizedbyTreasuryFunduponthereceipt
oftheassetsofU.S.GovernmentPortfolioinexchangesolelyforCapital
ReservesClassSharesanditsassumptionofU.S.GovernmentPortfolio's
liabilities;
(iv)TheshareholdersofU.S.GovernmentPortfoliowillrecognizenogain
orlossupontheexchangeoftheirU.S.GovernmentPortfoliosharessolely
forCapitalReservesClassShares;
(v)ThebasisofU.S.GovernmentPortfolio'sassetsinthehandsof
TreasuryFundwillbethesameasthebasisofthoseassetsinthehandsof
U.S.GovernmentPortfolioimmediatelypriortotheReorganization,andthe
holdingperiodofthoseassetsinthehandsofTreasuryFundwillinclude
theholdingperiodofthoseassetsinthehandsofU.S.Government
Portfolio;
(vi)ThebasisofU.S.GovernmentPortfolioshareholdersinCapital
ReservesClassShareswillbethesameastheirbasisinU.S.Government
Portfoliosharestobesurrenderedinexchangetherefor;and
(vii)TheholdingperiodoftheCapitalReservesClassSharestobe
receivedbytheU.S.GovernmentPortfolioshareholderswillincludethe
periodduringwhichtheU.S.GovernmentPortfoliosharestobesurrendered
inexchangethereforwereheld,providedsuchU.S.GovernmentPortfolio
shareswereheldascapitalassetsbythoseshareholdersonthedateofthe
Reorganization.
ShareholdersofU.S.GovernmentPortfolioshouldconsulttheirtax
advisersregardingtheeffect,ifany,oftheproposedReorganizationin
lightoftheirindividualcircumstances.Becausetheforegoingdiscussion
relatesonlytothefederalincometaxconsequencesoftheReorganization,
U.S.GovernmentPortfolioshareholdersalsoshouldconsulttheirtax
advisersastostateandlocaltaxconsequences,ifany,ofthe
Reorganization.
CAPITALIZATION
ThefollowingtableshowsthecapitalizationofU.S.GovernmentPortfolio
andTreasuryFund(thenDailyMoneyFund:U.S.TreasuryPortfolio)asof
January31,1997(unaudited)andonaproformacombinedbasis(unaudited)
asofthatdategivingeffecttotheReorganization.
[DownloadTable]
NETASSETSNAVPERSHARESHARESOUTSTANDING
U.S.GOVERNMENTPORTFOLIO$266,416,323$1.00266,463,583
TREASURYFUND
DailyMoneyClass$1,725,294,360$1.001,725,661,110
AdvisorBClass$14,478,106$1.0014,482,262
CapitalReservesClass
PROFORMACOMBINEDFUND
AdvisorBClass$14,478,106$1.0014,482,262
23/101
12/24/2014
CapitalReservesClass$266,416,323$1.00266,463,583
CONCLUSION
TheAgreementandPlanofReorganizationandthetransactionsprovidedfor
thereinwereapprovedbytheBoardsatameetingheldonMarch20,1997.
TheBoardsofTrusteesofDailyMoneyFundandNewburyStreetTrust
determinedthattheproposedReorganizationisinthebestinterestsof
shareholdersofeachFundandthattheinterestsofexistingshareholders
ofU.S.GovernmentPortfolioandTreasuryFundwouldnotbedilutedasa
resultoftheReorganization.IntheeventthattheReorganizationisnot
consummated,U.S.GovernmentPortfoliowillcontinuetoengageinbusiness
asafundofaregisteredinvestmentcompanyandtheBoardofDailyMoney
Fundwillconsiderotherproposalsforthereorganizationorliquidationof
theFund.
ADDITIONALINFORMATIONABOUTTREASURYFUND
TreasuryFundcurrentlypaysFMRamonthlymanagementfeeatanannualrate
of0.25%ofitsaveragenetassets.Thismanagementfeeratewasapproved
byshareholdersonMay9,1997,andwentintoeffectonMay31,1997.
Also,effectiveMay31,1997,underanewDistributionandServicePlan
adoptedpursuanttoRule12b1underthe1940Act,TreasuryFundDaily
MoneyClassbeganpayingFDCadistributionfeeof0.25%tocovermostof
theClass'sdistributionrelatedcosts;inconnectionwiththischange,
TreasuryFund'smanagementfeewasreducedfrom0.50%to0.25%.
TheProspectusforTreasuryFundDailyMoneyClass,datedMay30,1997,
isenclosedwiththisProxyStatementandisincorporatedhereinby
reference.TheProspectuscontainsadditionalinformationaboutTreasury
Fundincludingitsinvestmentobjectiveandpolicies,investmentadviser,
advisoryfeesandexpenses,andorganization.Thefinancialhighlights
tablethatfollowsisforTreasuryFundDailyMoneyClass.TreasuryFund
CapitalReservesClassisexpectedtocommenceoperationsonorabout
October31,1997.
TREASURYFUND:DAILYMONEYCLASS(FORMERLYDAILYMONEYFUND:U.S.TREASURY
PORTFOLIOINITIALCLASS)
SelectedPerShareDataand
Ratios
Yearsended1997E1996A1996199519941993199219911990198919881987
July31
Netasset$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
value,
beginningof
period
Incomefrom
Investment
Operations
Net
interest.024.012.049.049.029.027.042.065.079.083.063.057
income
Less
Distributions
Fromnet(.024)(.012)(.049)(.049)(.029)(.027)(.042)(.065)(.079)(.083)(.063)(.057)
interest
income
Netasset$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
value,end
ofperiod
Total
returnB2.39%1.19%5.06%5.02%2.89%2.78%4.25%6.69%8.24%8.64%6.45%5.81%
Netassets,$1,352$1,801$1,801$1,828$2,025$2,949$3,094$1,702$1,177$994$320$240
endof
period
(Inmillions)
Ratioof.65%C,.65%C,.65%C.65%C.60%.57%.59%.59%.59%.64%.64%.58%
expensestoDD
average
netassets
Ratioofnet4.81%D4.66%4.94%4.89%2.81%2.73%4.14%6.42%7.91%8.47%6.26%5.67%
interestD
incometo
average
netassets
ATHREEMONTHSENDEDOCTOBER31,1996
BTOTALRETURNSFORPERIODSOFLESSTHANONEYEARARENOTANNUALIZEDAND
WOULDHAVEBEENLOWERHADCERTAINEXPENSESNOTBEENREDUCEDDURINGTHE
PERIODSSHOWN.
CFMRAGREEDTOREIMBURSEAPORTIONOFTHECLASS'SEXPENSESDURINGTHE
24/101
12/24/2014
PERIOD.WITHOUTTHISREIMBURSEMENTTHECLASS'SEXPENSERATIOWOULDHAVE
BEENHIGHER.
DANNUALIZED
ESIXMONTHSENDEDAPRIL30,1997(UNAUDITED)
MISCELLANEOUS
LEGALMATTERS.Certainlegalmattersinconnectionwiththeissuanceof
CapitalReservesClassShareshavebeenpasseduponbyKirkpatrick&
LockhartLLP,counseltoNewburyStreetTrust.
EXPERTS.TheauditedfinancialstatementsofU.S.GovernmentPortfolio,
incorporatedbyreferenceintotheStatementofAdditionalInformation,
havebeenauditedbyCoopers&LybrandL.L.P.,independentaccountants,
whosereportthereonisincludedintheAnnualReporttoShareholdersfor
thefiscalyearendedJuly31,1996.Theauditedfinancialstatementsof
TreasuryFund,incorporatedbyreferenceintotheStatementofAdditional
Information,havebeenauditedbyCoopers&LybrandL.L.P.,independent
accountants,whosereportthereonisincludedintheAnnualReportto
ShareholdersforthefiscalyearendedOctober31,1996.Thefinancial
statementsauditedbyCoopers&LybrandL.L.P.havebeenincorporatedby
referenceinrelianceontheirreportsgivenontheirauthorityasexperts
inauditingandaccounting.UnauditedfinancialstatementsforU.S.
GovernmentPortfolioforthesixmonthperiodendedJanuary31,1997,and
unauditedfinancialstatementsforTreasuryFundforthesixmonthperiod
endedApril30,1997,arealsoincorporatedbyreferenceintotheStatement
ofAdditionalInformation.
AVAILABLEINFORMATION.DailyMoneyFundandNewburyStreetTrustare
subjecttotheinformationalrequirementsoftheSecuritiesExchangeActof
1934andthe1940Act,andinaccordancetherewithfilereports,proxy
material,andotherinformationwiththeSEC.Suchreports,proxy
material,andotherinformationcanbeinspectedandcopiedatthePublic
ReferenceFacilitiesmaintainedbytheSECat450FifthStreet,N.W.,
WashingtonD.C.20549,andattheNortheastRegionalOfficeoftheSEC,7
WorldTradeCenter,Suite1300,NewYork,NewYork10048.Copiesofsuch
materialalsocanbeobtainedfromthePublicReferenceBranch,Officeof
ConsumerAffairsandInformationServices,SecuritiesandExchange
Commission,WashingtonD.C.20549,atprescribedrates.
NOTICETOBANKS,BROKERDEALERSANDVOTINGTRUSTEESANDTHEIRNOMINEES.
PleaseadviseDailyMoneyFund,incareofFidelityInvestments
InstitutionalOperationsCompany,Inc.,82DevonshireStreet,Boston,
Massachusetts02109,whetherotherpersonsarebeneficialownersofshares
forwhichproxiesarebeingsolicitedand,ifso,thenumberofcopiesof
thisProxyStatementyouwishtoreceiveinordertosupplycopiestothe
beneficialownersoftherespectiveshares.
Exhibit1
FORMOF
AGREEMENTANDPLANOFREORGANIZATION
THISAGREEMENTANDPLANOFREORGANIZATION(theAgreement)ismadeasof
the21stdayofJuly,1997,byandbetweenDailyMoneyFund,aDelaware
businesstrust,onbehalfofCapitalReserves:U.S.GovernmentPortfolio
(U.S.GovernmentPortfolio),aseriesofDailyMoneyFund,andNewbury
StreetTrust,aDelawarebusinesstrust,onbehalfofTreasuryFund
(TreasuryFund),aseriesofNewburyStreetTrust.DailyMoneyFundand
NewburyStreetTrustmaybereferredtohereincollectivelyasthe"Trusts"
oreachindividuallyasa"Trust."TreasuryFundandU.S.Government
Portfoliomaybereferredtohereincollectivelyasthe"Funds"oreach
individuallyasa"Fund."
ThisAgreementisintendedtobe,andisadoptedas,aplanof
reorganizationwithinthemeaningofSection368(a)(1)(C)oftheInternal
RevenueCodeof1986,asamended(theCode).Thereorganizationwill
comprise:(a)thetransferofalloftheassetsofU.S.Government
PortfoliotoTreasuryFundsolelyinexchangeforCapitalReservesClass
sharesofbeneficialinterestinTreasuryFund(theCapitalReservesClass
Shares)andtheassumptionbyTreasuryFundofU.S.GovernmentPortfolio's
liabilities;and(b)theconstructivedistributionofsuchsharesbyU.S.
GovernmentPortfolioPRORATAtoitsshareholdersincompleteliquidation
andterminationofU.S.GovernmentPortfolioinexchangeforallofU.S.
GovernmentPortfolio'soutstandingshares.Theforegoingtransactionsare
referredtohereinasthe"Reorganization."
Inconsiderationofthemutualpromisesandsubjecttothetermsand
conditionsherein,thepartiescovenantandagreeasfollows:
1.REPRESENTATIONSANDWARRANTIESOFU.S.GOVERNMENTPORTFOLIO.U.S.
GovernmentPortfoliorepresentsandwarrantstoandagreeswithTreasury
Fundthat:
(a)U.S.GovernmentPortfolioisaseriesofDailyMoneyFund,abusiness
trustdulyorganized,validlyexisting,andingoodstandingunderthelaws
oftheStateofDelaware,andhasthepowertoownallofitsproperties
andassetsandtocarryoutitsobligationsunderthisAgreement.Ithas
allnecessaryfederal,state,andlocalauthorizationstocarryonits
businessasnowbeingconductedandtocarryoutthisAgreement;
(b)DailyMoneyFundisanopenend,managementinvestmentcompanyduly
registeredundertheInvestmentCompanyActof1940,asamended(the1940
Act),andsuchregistrationisinfullforceandeffect;
(c)TheProspectus,datedNovember29,1996(assupplementedMarch21,
1997),andtheStatementofAdditionalInformation,datedNovember29,1996
25/101
12/24/2014
(assupplementedJanuary2,1997),ofU.S.GovernmentPortfoliopreviously
furnishedtoTreasuryFund,didnotanddonotcontainanyuntruestatement
ofamaterialfactoromittostateamaterialfactrequiredtobestated
thereinornecessarytomakethestatementsthereinnotmisleading;
(d)Therearenomateriallegal,administrative,orotherproceedings
pendingor,totheknowledgeofU.S.GovernmentPortfolio,threatened
againstU.S.GovernmentPortfoliowhichassertliabilityonthepartof
U.S.GovernmentPortfolio.U.S.GovernmentPortfolioknowsofnofacts
whichmightformthebasisfortheinstitutionofsuchproceedings;
(e)U.S.GovernmentPortfolioisnotin,andtheexecution,delivery,and
performanceofthisAgreementwillnotresultin,violationofany
provisionofitsTrustInstrumentorBylaws,or,totheknowledgeofU.S.
GovernmentPortfolio,ofanyagreement,indenture,instrument,contract,
lease,orotherundertakingtowhichU.S.GovernmentPortfolioisaparty
orbywhichU.S.GovernmentPortfolioisboundorresultinthe
accelerationofanyobligationortheimpositionofanypenaltyunderany
agreement,judgmentordecreetowhichU.S.GovernmentPortfolioisaparty
orisbound;
(f)TheStatementofAssetsandLiabilities,theStatementofOperations,
theStatementofChangesinNetAssets,theFinancialHighlights,andthe
ScheduleofInvestments(includingmarketvalues)ofU.S.Government
PortfolioatJuly31,1996,havebeenauditedbyCoopers&LybrandL.L.P.,
independentaccountants,andhavebeenfurnishedtoTreasuryFundtogether
withsuchunauditedfinancialstatementsandscheduleofinvestments
(includingmarketvalues)forthesixmonthperiodendedJanuary31,1997.
SaidStatementofAssetsandLiabilitiesandScheduleofInvestmentsfairly
presenttheFund'sfinancialpositionasofsuchdateandsaidStatementof
Operations,StatementofChangesinNetAssets,andFinancialHighlights
fairlyreflectitsresultsofoperations,changesinfinancialposition,
andfinancialhighlightsfortheperiodscoveredtherebyinconformitywith
generallyacceptedaccountingprinciplesconsistentlyapplied;
(g)U.S.GovernmentPortfoliohasnoknownliabilitiesofamaterial
nature,contingentorotherwise,otherthanthoseshownasbelongingtoit
onitsstatementofassetsandliabilitiesasofJuly31,1996,andthose
incurredintheordinarycourseofU.S.GovernmentPortfolio'sbusinessas
aninvestmentcompanysinceJuly31,1996;
(h)Theregistrationstatement(RegistrationStatement)filedwiththe
SecuritiesandExchangeCommission(Commission)byNewburyStreetTruston
FormN14relatingtotheCapitalReservesClassSharesissuablehereunder
andtheproxystatementofU.S.GovernmentPortfolioincludedtherein
(ProxyStatement),ontheeffectivedateoftheRegistrationStatementand
insofarastheyrelatetoU.S.GovernmentPortfolio(i)complyinall
materialrespectswiththeprovisionsoftheSecuritiesActof1933,as
amended(the1933Act),theSecuritiesExchangeActof1934,asamended
(the1934Act),andthe1940Act,andtherulesandregulationsthereunder,
and(ii)donotcontainanyuntruestatementofamaterialfactoromitto
stateamaterialfactrequiredtobestatedthereinornecessarytomake
thestatementsthereinnotmisleading;andatthetimeoftheshareholders'
meetingreferredtoinSection7andontheClosingDate,theprospectus
containedintheRegistrationStatementofwhichtheProxyStatementisa
part(theProspectus),asamendedorsupplemented,insofarasitrelatesto
U.S.GovernmentPortfolio,doesnotcontainanyuntruestatementofa
materialfactoromittostateamaterialfactrequiredtobestated
(i)AllmaterialcontractsandcommitmentsofU.S.GovernmentPortfolio
(otherthanthisAgreement)willbeterminatedwithoutliabilitytoU.S.
GovernmentPortfoliopriortotheClosingDate(otherthanthosemadein
connectionwithredemptionsofsharesandthepurchaseandsaleof
portfoliosecuritiesmadeintheordinarycourseofbusiness);
(j)Noconsent,approval,authorization,ororderofanycourtor
governmentalauthorityisrequiredfortheconsummationbyU.S.Government
PortfolioofthetransactionscontemplatedbythisAgreement,exceptsuch
ashavebeenobtainedunderthe1933Act,the1934Act,the1940Act,and
statesecuritiesorblueskylaws(whichtermasusedhereinshallinclude
theDistrictofColumbiaandPuertoRico);
(k)U.S.GovernmentPortfoliohasfiledorwillfileallfederalandstate
taxreturnswhich,totheknowledgeofU.S.GovernmentPortfolio's
officers,arerequiredtobefiledbyU.S.GovernmentPortfolioandhas
paidorwillpayallfederalandstatetaxesshowntobedueonsaid
returnsorprovisionshallhavebeenmadeforthepaymentthereof,and,to
thebestofU.S.GovernmentPortfolio'sknowledge,nosuchreturnis
currentlyunderauditandnoassessmenthasbeenassertedwithrespectto
suchreturns;
(l)U.S.GovernmentPortfoliohasmettherequirementsofSubchapterMof
theCodeforqualificationandtreatmentasaregulatedinvestmentcompany
forallpriortaxableyearsandintendstomeetsuchrequirementsforits
currenttaxableyearendingontheClosingDate(asdefinedinSection6);
(m)AlloftheissuedandoutstandingsharesofU.S.GovernmentPortfolio
are,andattheClosingDatewillbe,dulyandvalidlyissuedand
outstandingandfullypaidandnonassessableasamatterofDelawarelaw
(exceptasdisclosedintheFund'sStatementofAdditionalInformation),
andhavebeenofferedforsaleinconformitywithallapplicablefederal
securitieslaws.AlloftheissuedandoutstandingsharesofU.S.
26/101
12/24/2014
GovernmentPortfoliowill,attheClosingDate,beheldbythepersonsand
intheamountssetforthinthelistofshareholderssubmittedtoTreasury
FundinaccordancewiththisAgreement;
(n)AsofboththeValuationTime(asdefinedinSection4)andthe
ClosingDate,U.S.GovernmentPortfoliowillhavethefullright,power,
andauthoritytosell,assign,transfer,anddeliveritsportfolio
securitiesandanyotherassetsofU.S.GovernmentPortfoliotobe
transferredtoTreasuryFundpursuanttothisAgreement.AttheClosing
Date,subjectonlytothedeliveryofU.S.GovernmentPortfolio'sportfolio
securitiesandanysuchotherassetsascontemplatedbythisAgreement,
TreasuryFundwillacquireU.S.GovernmentPortfolio'sportfoliosecurities
andanysuchotherassetssubjecttonoencumbrances,liens,orsecurity
interests(exceptforthosethatmayariseintheordinarycourseandare
disclosedtoTreasuryFund)andwithoutanyrestrictionsuponthetransfer
thereof;and
(o)Theexecution,performance,anddeliveryofthisAgreementwillhave
beendulyauthorizedpriortotheClosingDatebyallnecessarycorporate
actiononthepartofU.S.GovernmentPortfolio,andthisAgreement
constitutesavalidandbindingobligationofU.S.GovernmentPortfolio
enforceableinaccordancewithitsterms,subjecttoshareholderapproval.
2.REPRESENTATIONSANDWARRANTIESOFTREASURYFUND.TreasuryFund
representsandwarrantstoandagreeswithU.S.GovernmentPortfoliothat:
(a)TreasuryFundisaseriesofNewburyStreetTrust,abusinesstrust
dulyorganized,validlyexisting,andingoodstandingunderthelawsof
theStateofDelaware,andhasthepowertoownallofitspropertiesand
assetsandtocarryoutitsobligationsunderthisAgreement.Ithasall
necessaryfederal,state,andlocalauthorizationstocarryonitsbusiness
asnowbeingconductedandtocarryoutthisAgreement;
(b)NewburyStreetTrustisanopenend,managementinvestmentcompany
dulyregisteredunderthe1940Act,andsuchregistrationisinfullforce
andeffect;
(c)TheProspectusandtheStatementofAdditionalInformationofTreasury
Fund,bothdatedMay30,1997,previouslyfurnishedtoU.S.Government
Portfoliodidnotanddonotcontainanyuntruestatementofamaterial
factoromittostateamaterialfactrequiredtobestatedthereinor
necessarytomakethestatementsthereinnotmisleading;
pendingor,totheknowledgeofTreasuryFund,threatenedagainstTreasury
FundwhichassertliabilityonthepartofTreasuryFund.TreasuryFund
knowsofnofactswhichmightformthebasisfortheinstitutionofsuch
proceedings;
(e)TreasuryFundisnotin,andtheexecution,delivery,andperformance
ofthisAgreementwillnotresultin,violationofanyprovisionofits
TrustInstrumentorBylaws,or,totheknowledgeofTreasuryFund,ofany
agreement,indenture,instrument,contract,lease,orotherundertakingto
whichTreasuryFundisapartyorbywhichTreasuryFundisboundorresult
intheaccelerationofanyobligationortheimpositionofanypenalty
underanyagreement,judgment,ordecreetowhichTreasuryFundisaparty
orisbound;
ScheduleofInvestments(includingmarketvalues)ofTreasuryFundat
October31,1996,havebeenauditedbyCoopers&LybrandL.L.P.,
independentaccountants,andhavebeenfurnishedtoU.S.Government
Portfoliotogetherwithsuchunauditedfinancialstatementsandscheduleof
investments(includingmarketvalues)forthesixmonthperiodendedApril
30,1997.SaidStatementofAssetsandLiabilitiesandScheduleof
InvestmentsfairlypresenttheFund'sfinancialpositionasofsuchdate
andsaidStatementofOperations,StatementofChangesinNetAssets,and
FinancialHighlightsfairlyreflectitsresultsofoperations,changesin
financialposition,andfinancialhighlightsfortheperiodscovered
therebyinconformitywithgenerallyacceptedaccountingprinciples
consistentlyapplied;
(g)TreasuryFundhasnoknownliabilitiesofamaterialnature,
contingentorotherwise,otherthanthoseshownasbelongingtoitonits
statementofassetsandliabilitiesasofOctober31,1996andthose
incurredintheordinarycourseofTreasuryFund'sbusinessasan
investmentcompanysinceOctober31,1996;
(h)Noconsent,approval,authorization,ororderofanycourtor
governmentalauthorityisrequiredfortheconsummationbyTreasuryFundof
thetransactionscontemplatedbythisAgreement,exceptsuchashavebeen
obtainedunderthe1933Act,the1934Act,the1940Act,andstate
securitiesorblueskylaws(whichtermasusedhereinshallincludethe
DistrictofColumbiaandPuertoRico);
(i)TreasuryFundhasfiledorwillfileallfederalandstatetaxreturns
which,totheknowledgeofTreasuryFund'sofficers,arerequiredtobe
filedbyTreasuryFundandhaspaidorwillpayallfederalandstatetaxes
showntobedueonsaidreturnsorprovisionshallhavebeenmadeforthe
paymentthereof,and,tothebestofTreasuryFund'sknowledge,nosuch
returniscurrentlyunderauditandnoassessmenthasbeenassertedwith
respecttosuchreturns;
(j)TreasuryFundhasmettherequirementsofSubchapterMoftheCodefor
qualificationandtreatmentasaregulatedinvestmentcompanyforallprior
27/101
12/24/2014
taxableyearsandintendstomeetsuchrequirementsforitscurrenttaxable
yearendingonOctober31,1997;
(k)BytheClosingDate,theCapitalReservesClassSharestobeissuedto
U.S.GovernmentPortfoliowillhavebeendulyauthorizedand,whenissued
anddeliveredpursuanttothisAgreement,willbelegallyandvalidly
issuedandwillbefullypaidandnonassessable(exceptasdisclosedin
TreasuryFund'sStatementofAdditionalInformation)byTreasuryFund,and
noshareholderofTreasuryFundwillhaveanypreemptiverightof
subscriptionorpurchaseinrespectthereof;
(l)Theexecution,performance,anddeliveryofthisAgreementwillhave
actiononthepartofTreasuryFund,andthisAgreementconstitutesavalid
andbindingobligationofTreasuryFundenforceableinaccordancewithits
terms,subjecttoapprovalbytheshareholdersofU.S.Government
Portfolio;
(m)TheRegistrationStatementandtheProxyStatement,ontheeffective
dateoftheRegistrationStatementandinsofarastheyrelatetoTreasury
Fund,(i)willcomplyinallmaterialrespectswiththeprovisionsofthe
1933Act,the1934Act,andthe1940Act,andtherulesandregulations
thereunder,and(ii)willnotcontainanyuntruestatementofamaterial
necessarytomakethestatementsthereinnotmisleading;andatthetimeof
theshareholders'meetingreferredtoinSection7andontheClosingDate,
theProspectus,asamendedorsupplemented,insofarasitrelatesto
TreasuryFund,willnotcontainanyuntruestatementofamaterialfactor
omittostateamaterialfactrequiredtobestatedthereinornecessaryto
makethestatementsthereinnotmisleading;
(n)TheissuanceoftheCapitalReservesClassSharespursuanttothis
Agreementwillbeincompliancewithallapplicablefederalsecurities
laws;and
(o)Alloftheissuedandoutstandingsharesofbeneficialinterestof
TreasuryFundhavebeenofferedforsaleandsoldinconformitywiththe
federalsecuritieslaws.
3.REORGANIZATION.
(a)SubjecttotherequisiteapprovaloftheshareholdersofU.S.
GovernmentPortfolioandtotheothertermsandconditionscontained
herein,U.S.GovernmentPortfolioagreestoassign,sell,convey,transfer,
anddelivertoTreasuryFundasoftheClosingDatealloftheassetsof
U.S.GovernmentPortfolioofeverykindandnatureexistingontheClosing
Date.TreasuryFundagreesinexchangetherefor:(i)toassumeallof
U.S.GovernmentPortfolio'sliabilitiesexistingonoraftertheClosing
Date,whetherornotdeterminableontheClosingDate,and(ii)toissue
anddelivertoU.S.GovernmentPortfoliothenumberoffullandfractional
CapitalReservesClassSharesequaltothenumberoffullandfractional
sharesofU.S.GovernmentPortfoliothenoutstanding.
(b)TheassetsofU.S.GovernmentPortfoliotobeacquiredbyTreasury
Fundshallinclude,withoutlimitation,allcash,cashequivalents,
securities,receivables(includinginterestordividendsreceivables),
claims,chosesinaction,andotherpropertyownedbyU.S.Government
Portfolio,andanydeferredorprepaidexpensesshownasanassetonthe
booksofU.S.GovernmentPortfolioontheClosingDate.U.S.Government
PortfoliowillpayorcausetobepaidtoTreasuryFundanydividendor
interestpaymentsreceivedbyitonoraftertheClosingDatewithrespect
totheassetstransferredtoTreasuryFundhereunder,andTreasuryFund
willretainanydividendorinterestpaymentsreceivedbyitafterthe
ValuationTimewithrespecttotheassetstransferredhereunderwithout
regardtothepaymentdatethereof.
(c)TheliabilitiesofU.S.GovernmentPortfoliotobeassumedbyTreasury
Fundshallinclude(exceptasotherwiseprovidedforherein)allofU.S.
GovernmentPortfolio'sliabilities,debts,obligations,andduties,of
whateverkindornature,whetherabsolute,accrued,contingent,or
otherwise,whetherornotarisingintheordinarycourseofbusiness,
specificallyreferredtointhisAgreement.Notwithstandingtheforegoing,
U.S.GovernmentPortfolioagreestouseitsbesteffortstodischargeall
ofitsknownliabilitiespriortotheClosingDate,otherthanliabilities
incurredintheordinarycourseofbusiness.
(d)PursuanttothisAgreement,assoonaftertheClosingDateasis
convenientlypracticable(theLiquidationDate),U.S.GovernmentPortfolio
willconstructivelydistributePRORATAtoitsshareholdersofrecord,
determinedasoftheValuationTimeontheClosingDate,theCapital
ReservesClassSharesinexchangeforsuchshareholders'sharesof
beneficialinterestinU.S.GovernmentPortfolioandU.S.Government
PortfoliowillbeliquidatedinaccordancewithDailyMoneyFund'sTrust
Instrument.SuchdistributionshallbeaccomplishedbytheFunds'transfer
agentopeningaccountsonTreasuryFund'ssharetransferbooksinthenames
oftheU.S.GovernmentPortfolioshareholdersandtransferringtheCapital
ReservesClassSharesthereto.EachU.S.GovernmentPortfolio
shareholder'saccountshallbecreditedwiththerespectivePRORATAnumber
offullandfractional(roundedtothethirddecimalplace)Capital
ReservesClassSharesduethatshareholder.AlloutstandingU.S.
GovernmentPortfolioshares,includinganyrepresentedbycertificates,
shallsimultaneouslybecanceledonU.S.GovernmentPortfolio'sshare
28/101
12/24/2014
transferrecords.TreasuryFundshallnotissuecertificatesrepresenting
theCapitalReservesClassSharesinconnectionwiththeReorganization.
(e)AnyreportingresponsibilityofU.S.GovernmentPortfolioisandshall
remainitsresponsibilityuptoandincludingthedateonwhichitis
terminated.
(f)AnytransfertaxespayableuponissuanceoftheCapitalReservesClass
SharesinanameotherthanthatoftheregisteredholderonU.S.
GovernmentPortfolio'sbooksoftheU.S.GovernmentPortfolioshares
constructivelyexchangedfortheCapitalReservesClassSharesshallbe
paidbythepersontowhomsuchCapitalReservesClassSharesaretobe
issued,asaconditionofsuchtransfer.
4.VALUATION.
(a)TheValuationTimeshallbe4:00p.m.EasterntimeontheClosing
Date,orsuchotherdateasmaybemutuallyagreeduponinwritingbythe
partieshereto(theValuationTime).
(b)OntheClosingDate,TreasuryFundwilldelivertoU.S.Government
PortfoliothenumberoffullandfractionalCapitalReservesClassShares
equaltothenumberoffullandfractionalsharesofU.S.Government
Portfoliothenoutstanding.
(c)ThesharepriceoftheCapitalReservesClassSharestobedelivered
toU.S.GovernmentPortfolio,thevalueoftheassetsofU.S.Government
Portfoliotransferredhereunder,andthevalueoftheliabilitiesofU.S.
GovernmentPortfoliotobeassumedhereundershallineachcasebe
determinedasoftheValuationTime.
(d)ThesharepriceoftheCapitalReservesClassSharesshallbecomputed
inthemannersetforthinthethencurrentTreasuryFundCapital
ReservesClassProspectusandStatementofAdditionalInformation,andthe
valueoftheassetsandliabilitiesofU.S.GovernmentPortfolioshallbe
computedinthemannersetforthinthethencurrentU.S.Government
PortfolioProspectusandStatementofAdditionalInformation.
(e)AllcomputationspursuanttothisSectionshallbemadebyorunder
thedirectionofFidelityServiceCompany,Inc.,awhollyownedsubsidiary
ofFMRCorp.,inaccordancewithitsregularpracticeaspricingagentfor
U.S.GovernmentPortfolioandTreasuryFund.
5.FEES;EXPENSES.
(a)U.S.GovernmentPortfolioshallberesponsibleforallexpenses,fees
andothercharges,subjecttoFMR'svoluntaryexpenselimitation,if
applicable.Anymergerrelatedexpenseswhichmaybeattributableto
TreasuryFundwillbebornebyTreasuryFund,subjecttoFMR'svoluntary
expenselimitation,ifapplicable.
(b)EachofTreasuryFundandU.S.GovernmentPortfoliorepresentsthat
thereisnopersonwhohasdealtwithitwhobyreasonofsuchdealingsis
entitledtoanybroker'sorfinder'sorothersimilarfeeorcommission
arisingoutofthetransactionscontemplatedbythisAgreement.
6.CLOSINGDATE.
(a)TheReorganization,togetherwithrelatedactsnecessarytoconsummate
thesame(theClosing),unlessotherwiseprovidedherein,shalloccurat
theprincipalofficeoftheTrusts,82DevonshireStreet,Boston,
Massachusetts,asoftheValuationTimeonOctober30,1997,oratsome
othertime,date,andplaceagreedtobyU.S.GovernmentPortfolioand
TreasuryFund(theClosingDate).
(b)IntheeventthatontheClosingDate:(i)anyofthemarketsfor
securitiesheldbytheFundsisclosedtotrading,or(ii)tradingthereon
isrestricted,or(iii)tradingorthereportingoftradingonsaidmarket
orelsewhereisdisrupted,allsothataccurateappraisalofthetotalnet
assetvalueofU.S.GovernmentPortfolioandthenetassetvaluepershare
ofTreasuryFundisimpracticable,theValuationTimeandtheClosingDate
shallbepostponeduntilthefirstbusinessdayafterthedaywhensuch
tradingshallhavebeenfullyresumedandsuchreportingshallhavebeen
restored,orsuchotherdateasthepartiesmayagree.
7.SHAREHOLDERMEETINGANDTERMINATIONOFU.S.GOVERNMENTPORTFOLIO.
(a)U.S.GovernmentPortfolioagreestocallameetingofitsshareholders
aftertheeffectivedateoftheRegistrationStatement,toconsider
transferringitsassetstoTreasuryFundashereinprovided,adoptingthis
Agreement,andauthorizingtheliquidationofU.S.GovernmentPortfolio.
(b)U.S.GovernmentPortfolioagreesthatassoonasreasonably
practicableafterdistributionoftheCapitalReservesClassShares,U.S.
GovernmentPortfolioshallbeterminatedasaseriesofDailyMoneyFund
pursuanttoitsTrustInstrument,anyfurtheractionsshallbetakenin
connectiontherewithasrequiredbyapplicablelaw,andonandafterthe
ClosingDateU.S.GovernmentPortfolioshallnotconductanybusiness
exceptinconnectionwithitsliquidationandtermination.
8.CONDITIONSTOOBLIGATIONSOFTREASURYFUND.Theobligationsof
TreasuryFundhereundershallbesubjecttothefollowingconditions:
(a)ThatU.S.GovernmentPortfoliofurnishestoTreasuryFundastatement,
datedasoftheClosingDate,signedbyanofficerofDailyMoneyFund,
certifyingthatasoftheValuationTimeandtheClosingDateall
representationsandwarrantiesofU.S.GovernmentPortfoliomadeinthis
AgreementaretrueandcorrectinallmaterialrespectsandthatU.S.
GovernmentPortfoliohascompliedwithalltheagreementsandsatisfiedall
theconditionsonitsparttobeperformedorsatisfiedatorpriortosuch
dates;
(b)ThatU.S.GovernmentPortfoliofurnishesTreasuryFundwithcopiesof
29/101
12/24/2014
theresolutions,certifiedbyanofficerofDailyMoneyFund,evidencing
theadoptionofthisAgreementandtheapprovalofthetransactions
contemplatedhereinbytherequisitevoteoftheholdersoftheoutstanding
sharesofbeneficialinterestofU.S.GovernmentPortfolio;
(c)That,onorpriortotheClosingDate,U.S.GovernmentPortfoliowill
declareoneormoredividendsordistributionswhich,togetherwithall
previoussuchdividendsordistributionsattributabletoitscurrent
taxableyear,shallhavetheeffectofdistributingtotheshareholdersof
U.S.GovernmentPortfoliosubstantiallyallofU.S.GovernmentPortfolio's
investmentcompanytaxableincomeandallofitsnetrealizedcapitalgain,
ifany,asoftheClosingDate;
(d)ThatU.S.GovernmentPortfolioshalldelivertoTreasuryFundatthe
Closingastatementofitsassetsandliabilities,togetherwithalistof
itsportfoliosecuritiesshowingeachsuchsecurity'sadjustedtaxbasis
andholdingperiodbylot,withvaluesdeterminedasprovidedinSection4
ofthisAgreement,allasoftheValuationTime,certifiedonU.S.
GovernmentPortfolio'sbehalfbyitsTreasurerorAssistantTreasurer;
(e)ThatU.S.GovernmentPortfolio'scustodianshalldelivertoTreasury
FundacertificateidentifyingtheassetsofU.S.GovernmentPortfolioheld
bysuchcustodianasoftheValuationTimeontheClosingDateandstating
thatasoftheValuationTime:(i)theassetsheldbythecustodianwill
betransferredtoTreasuryFund;(ii)U.S.GovernmentPortfolio'sassets
havebeendulyendorsedinproperformfortransferinsuchconditionasto
constitutegooddeliverythereof;and(iii)tothebestofthecustodian's
knowledge,allnecessarytaxesinconjunctionwiththedeliveryofthe
assets,includingallapplicablefederalandstatestocktransferstamps,
ifany,havebeenpaidorprovisionforpaymenthasbeenmade;
(f)ThatU.S.GovernmentPortfolio'stransferagentshalldeliverto
TreasuryFundattheClosingacertificatesettingforththenumberof
sharesofU.S.GovernmentPortfoliooutstandingasoftheValuationTime
andthenameandaddressofeachholderofrecordofanysuchsharesand
thenumberofsharesheldofrecordbyeachsuchshareholder;
(g)ThatU.S.GovernmentPortfoliocallsameetingofitsshareholdersto
beheldaftertheeffectivedateoftheRegistrationStatement,toconsider
transferringitsassetstoTreasuryFundashereinprovided,adoptingthis
Agreement,andauthorizingtheliquidationandterminationofU.S.
GovernmentPortfolio;
(h)ThatU.S.GovernmentPortfoliodeliverstoTreasuryFundacertificate
ofanofficerofDailyMoneyFund,datedasoftheClosingDate,thatthere
hasbeennomaterialadversechangeinU.S.GovernmentPortfolio's
financialpositionsinceJuly31,1996,otherthanchangesinthemarket
valueofitsportfoliosecurities,orchangesduetonetredemptionsofits
shares,dividendspaid,orlossesfromoperations;and
(i)Thatalloftheissuedandoutstandingsharesofbeneficialinterest
ofU.S.GovernmentPortfolioshallhavebeenofferedforsaleandsoldin
conformitywithallapplicablestatesecuritieslawsand,totheextent
thatanyauditoftherecordsofU.S.GovernmentPortfoliooritstransfer
agentbyTreasuryFundoritsagentsshallhaverevealedotherwise,U.S.
GovernmentPortfolioshallhavetakenallactionsthatintheopinionof
TreasuryFundarenecessarytoremedyanypriorfailureonthepartofU.S.
GovernmentPortfoliotohaveofferedforsaleandsoldsuchsharesin
conformitywithsuchlaws.
9.CONDITIONSTOOBLIGATIONSOFU.S.GOVERNMENTPORTFOLIO.
(a)ThatTreasuryFundshallhaveexecutedanddeliveredtoU.S.
GovernmentPortfolioanAssumptionofLiabilities,certifiedbyanofficer
ofNewburyStreetTrust,datedasoftheClosingDatepursuanttowhich
TreasuryFundwillassumealloftheliabilitiesofU.S.Government
PortfolioexistingattheValuationTimeinconnectionwiththe
transactionscontemplatedbythisAgreement;
(b)ThatTreasuryFundfurnishestoU.S.GovernmentPortfolioastatement,
datedasoftheClosingDate,signedbyanofficerofNewburyStreet
Trust,certifyingthatasoftheValuationTimeandtheClosingDateall
representationsandwarrantiesofTreasuryFundmadeinthisAgreementare
trueandcorrectinallmaterialrespects,andTreasuryFundhascomplied
withalltheagreementsandsatisfiedalltheconditionsonitsparttobe
performedorsatisfiedatorpriortosuchdates;and
(c)ThatU.S.GovernmentPortfolioshallhavereceivedanopinionof
Kirkpatrick&LockhartLLP,counseltoU.S.GovernmentPortfolioand
TreasuryFund,totheeffectthattheCapitalReservesClassSharesare
dulyauthorizedandupondeliverytoU.S.GovernmentPortfolioasprovided
inthisAgreementwillbevalidlyissuedandwillbefullypaidand
nonassessablebyTreasuryFund(exceptasdisclosedinTreasuryFund's
StatementofAdditionalInformation)andnoshareholderofTreasuryFund
hasanypreemptiverightofsubscriptionorpurchaseinrespectthereof.
10.CONDITIONSTOOBLIGATIONSOFTREASURYFUNDANDU.S.GOVERNMENT
PORTFOLIO.
(a)ThatthisAgreementshallhavebeenadoptedandthetransactions
contemplatedhereinshallhavebeenapprovedbytherequisitevoteofthe
holdersoftheoutstandingsharesofbeneficialinterestofU.S.Government
Portfolio;
(b)Thatallconsentsofotherpartiesandallotherconsents,orders,and
permitsoffederal,state,andlocalregulatoryauthorities(including
30/101
12/24/2014
thoseoftheCommissionandofstateBlueSkyandsecuritiesauthorities,
including"noaction"positionsofsuchfederalorstateauthorities)
deemednecessarybyTreasuryFundorU.S.GovernmentPortfoliotopermit
consummation,inallmaterialrespects,ofthetransactionscontemplated
herebyshallhavebeenobtained,exceptwherefailuretoobtainanysuch
consent,order,orpermitwouldnotinvolveariskofamaterialadverse
effectontheassetsorpropertiesofTreasuryFundorU.S.Government
Portfolio,providedthateitherpartyheretomayforitselfwaiveanyof
suchconditions;
(c)ThatallproceedingstakenbyeitherFundinconnectionwiththe
transactionscontemplatedbythisAgreementandalldocumentsincidental
theretoshallbesatisfactoryinformandsubstancetoitanditscounsel,
Kirkpatrick&LockhartLLP;
(d)Thatthereshallnotbeanymateriallitigationpendingwithrespect
tothematterscontemplatedbythisAgreement;
(e)ThattheRegistrationStatementshallhavebecomeeffectiveunderthe
1933Act,andnostopordersuspendingsucheffectivenessshallhavebeen
institutedor,totheknowledgeofTreasuryFundandU.S.Government
Portfolio,threatenedbytheCommission;and
(f)ThatTreasuryFundandU.S.GovernmentPortfolioshallhavereceived
anopinionofKirkpatrick&LockhartLLPsatisfactorytoTreasuryFundand
U.S.GovernmentPortfoliothatforfederalincometaxpurposes:
(i)TheReorganizationwillbeareorganizationundersection
368(a)(1)(C)oftheCode,andU.S.GovernmentPortfolioandTreasuryFund
willeachbepartiestotheReorganizationundersection368(b)ofthe
Code;
(ii)NogainorlosswillberecognizedbyU.S.GovernmentPortfolioupon
thetransferofallofitsassetstoTreasuryFundinexchangesolelyfor
theCapitalReservesClassSharesandtheassumptionofU.S.Government
Portfolio'sliabilitiesfollowedbythedistributionofthoseCapital
ReservesClassSharestotheshareholdersofU.S.GovernmentPortfolioin
liquidationofU.S.GovernmentPortfolio;
(iii)NogainorlosswillberecognizedbyTreasuryFundonthereceipt
ofU.S.GovernmentPortfolio'sassetsinexchangesolelyfortheCapital
ReservesClassSharesandtheassumptionofU.S.GovernmentPortfolio's
liabilities;
(iv)ThebasisofU.S.GovernmentPortfolio'sassetsinthehandsof
TreasuryFundwillbethesameasthebasisofsuchassetsinU.S.
GovernmentPortfolio'shandsimmediatelypriortotheReorganization;
(v)TreasuryFund'sholdingperiodintheassetstobereceivedfromU.S.
GovernmentPortfoliowillincludeU.S.GovernmentPortfolio'sholding
periodinsuchassets;
(vi)AU.S.GovernmentPortfolioshareholderwillrecognizenogainor
lossontheexchangeofhisorhersharesofbeneficialinterestinU.S.
GovernmentPortfoliofortheCapitalReservesClassSharesinthe
Reorganization;
(vii)AU.S.GovernmentPortfolioshareholder'sbasisintheCapital
ReservesClassSharestobereceivedbyhimorherwillbethesameashis
orherbasisintheU.S.GovernmentPortfoliosharesexchangedtherefor;
and
(viii)AU.S.GovernmentPortfolioshareholder'sholdingperiodforhis
orherCapitalReservesClassShareswillincludetheholdingperiodof
U.S.GovernmentPortfoliosharesexchanged,providedthatthoseU.S.
GovernmentPortfolioshareswereheldascapitalassetsonthedateofthe
Reorganization.
Notwithstandinganythinghereintothecontrary,eachofU.S.Government
PortfolioandTreasuryFundmaynotwaivetheconditionssetforthinthis
subsection10(f).
11.COVENANTSOFTREASURYFUNDANDU.S.GOVERNMENTPORTFOLIO.
(a)TreasuryFundandU.S.GovernmentPortfolioeachcovenantstooperate
itsrespectivebusinessintheordinarycoursebetweenthedatehereofand
theClosingDate,itbeingunderstoodthatsuchordinarycourseofbusiness
willincludethepaymentofcustomarydividendsanddistributions;
(b)U.S.GovernmentPortfoliocovenantsthatitisnotacquiringthe
CapitalReservesClassSharesforthepurposeofmakinganydistribution
otherthaninaccordancewiththetermsofthisAgreement;
(c)U.S.GovernmentPortfoliocovenantsthatitwillassistTreasuryFund
inobtainingsuchinformationasTreasuryFundreasonablyrequests
concerningthebeneficialownershipofU.S.GovernmentPortfolio'sshares;
and
(d)U.S.GovernmentPortfoliocovenantsthatitsliquidationand
terminationwillbeeffectedinthemannerprovidedinitsTrustInstrument
inaccordancewithapplicablelawandaftertheClosingDate,U.S.
GovernmentPortfoliowillnotconductanybusinessexceptinconnection
withitsliquidationandtermination.
12.TERMINATION;WAIVER.
TreasuryFundandU.S.GovernmentPortfoliomayterminatethisAgreement
bymutualagreement.Inaddition,eitherTreasuryFundorU.S.Government
PortfoliomayatitsoptionterminatethisAgreementatorpriortothe
ClosingDatebecause:
(i)ofamaterialbreachbytheotherofanyrepresentation,warranty,or
agreementcontainedhereintobeperformedatorpriortotheClosingDate;
31/101
12/24/2014
or
(ii)aconditionhereinexpressedtobeprecedenttotheobligationsof
theterminatingpartyhasnotbeenmetanditreasonablyappearsthatit
willnotorcannotbemet.
Intheeventofanysuchtermination,thereshallbenoliabilityfor
damagesonthepartofU.S.GovernmentPortfolioorTreasuryFund,ortheir
respectiveTrusteesorofficers.
13.SOLEAGREEMENT;AMENDMENTS;WAIVERS;SURVIVALOFWARRANTIES.
(a)ThisAgreementsupersedesallpreviouscorrespondenceandoral
communicationsbetweenthepartiesregardingthesubjectmatterhereof,
constitutestheonlyunderstandingwithrespecttosuchsubjectmatter,may
notbechangedexceptbyaletterofagreementsignedbyeachpartyhereto
andshallbeconstruedinaccordancewithandgovernedbythelawsofthe
StateofDelaware.
(b)ThisAgreementmaybeamended,modified,orsupplementedinsuch
mannerasmaybemutuallyagreeduponinwritingbytherespective
President,anyVicePresident,orTreasurerofTreasuryFundorU.S.
GovernmentPortfolio;provided,however,thatfollowingtheshareholders'
meetingcalledbyU.S.GovernmentPortfoliopursuanttoSection7ofthis
Agreement,nosuchamendmentmayhavetheeffectofchangingtheprovisions
fordeterminingthenumberofCapitalReservesClassSharestobepaidto
U.S.GovernmentPortfolioshareholdersunderthisAgreementtothe
detrimentofsuchshareholderswithouttheirfurtherapproval.
(c)EitherFundmaywaiveanyconditiontoitsobligationshereunder,
providedthatsuchwaiverdoesnothaveanymaterialadverseeffectonthe
interestsofsuchFund'sshareholders.
Therepresentations,warranties,andcovenantscontainedintheAgreement,
orinanydocumentdeliveredpursuantheretoorinconnectionherewith,
shallsurvivetheconsummationofthetransactionscontemplatedhereunder.
14.TRUSTINSTRUMENTS.
AcopyoftheTrustInstrumentofeachTrustisonfilewiththeSecretary
ofStateoftheStateofDelaware,andnoticeisherebygiventhatthis
instrumentisexecutedonbehalfoftheTrusteesofeachFundastrustees
andnotindividuallyandthattheobligationsofeachFundunderthis
instrumentarenotbindinguponanyofsuchFund'sTrustees,officers,or
shareholdersindividuallybutarebindingonlyupontheassetsandproperty
ofsuchFund.EachFundagreesthatitsobligationshereunderapplyonly
tosuchFundandnottoitsshareholdersindividuallyortotheTrusteesof
suchFund.
15.ASSIGNMENT.
ThisAgreementshallbindandinuretothebenefitofthepartieshereto
andtheirrespectivesuccessorsandassigns,butnoassignmentortransfer
ofanyrightsorobligationshereundershallbemadebyanypartywithout
thewrittenconsentoftheotherparties.Nothinghereinexpressedor
impliedisintendedorshallbeconstruedtoconferuponorgiveany
person,firm,orcorporationotherthanthepartiesheretoandtheir
respectivesuccessorsandassignsanyrightsorremediesunderorbyreason
ofthisAgreement.
ThisAgreementmaybeexecutedinanynumberofcounterparts,eachof
which,whenexecutedanddelivered,shallbedeemedtobeanoriginal.
INWITNESSWHEREOF,eachofthepartiesheretohascausedthisAgreement
tobeexecutedbyanappropriateofficer.
SIGNATURELINESOMITTED
AFUNDOF
DAILYMONEYFUND
18008433001
TotheShareholdersofCapitalReserves:MoneyMarketPortfolio:
Meeting)ofCapitalReserves:MoneyMarketPortfolio(MoneyMarket
Portfolio),willbeheldattheofficeofDailyMoneyFund,82Devonshire
Street,Boston,Massachusetts02109onWednesday,September17,1997,at
11:30a.m.Easterntime.ThepurposeoftheMeetingistoconsiderandact
uponthefollowingproposal,andtotransactsuchotherbusinessasmay
properlycomebeforetheMeetingoranyadjournmentsthereof.
(1)ToapproveanAgreementandPlanofReorganizationbetweenMoney
MarketPortfolioandPrimeFund,afundofNewburyStreetTrust,providing
forthetransferofalloftheassetsofMoneyMarketPortfoliotoPrime
FundinexchangesolelyforCapitalReservesClasssharesofbeneficial
interestofPrimeFundandtheassumptionbyPrimeFundofMoneyMarket
Portfolio'sliabilities,followedbythedistributionofCapitalReserves
ClasssharesofPrimeFundtoshareholdersofMoneyMarketPortfolioin
liquidationofMoneyMarketPortfolio.
therecorddateforthedeterminationoftheshareholdersofMoneyMarket
Portfolioentitledtonoticeof,andtovoteat,suchMeetingandany
adjournmentsthereof.
32/101
12/24/2014
July21,1997
YOURVOTEISIMPORTANT
HOLDINGSMAYBE.
u/t/d12/28/78
UGMA
AFUNDOF
DAILYMONEYFUND
18008433001
JULY21,1997
toshareholdersofCapitalReserves:MoneyMarketPortfolio(MoneyMarket
Portfolio),afundofDailyMoneyFund,inconnectionwiththesolicitation
ofproxiesbyDailyMoneyFund'sBoardofTrusteesforuseattheSpecial
MeetingofShareholdersofMoneyMarketPortfolioandatanyadjournments
thereof(theMeeting).TheMeetingwillbeheldonWednesday,September17,
Massachusetts02109,theprincipalexecutiveofficeofDailyMoneyFund.
toanAgreementandPlanofReorganization(theAgreement),MoneyMarket
PortfoliowouldtransferallofitsassetstoPrimeFund,afundofNewbury
StreetTrust,inexchangesolelyforCapitalReservesClasssharesof
beneficialinterestofPrimeFund(CapitalReservesClassShares)andthe
assumptionbyPrimeFundofMoneyMarketPortfolio'sliabilities.Capital
ReservesClassShareswouldthenbedistributedtoMoneyMarketPortfolio
shareholders,sothateachsuchshareholderwouldreceivethenumberof
fullandfractionalsharesofMoneyMarketPortfolioheldbysuch
shareholderonOctober30,1997,orsuchotherdateasthepartiesmay
agree(theClosingDate).MoneyMarketPortfoliowilldistributeCapital
ReservesClassSharestoitsshareholdersinliquidation,asprovidedin
theAgreement.
PrimeFund,amoneymarketfund,isadiversifiedfundofNewburyStreet
Trust,anopenendmanagementinvestmentcompanyorganizedasaDelaware
businesstrustonDecember30,1991.NewburyStreetTrust'sprincipal
executiveofficeislocatedat82DevonshireStreet,Boston,Massachusetts
02109(18008433001).PrimeFund'sinvestmentobjectiveistoobtainas
highalevelofcurrentincomeasisconsistentwiththepreservationof
capitalandliquidity.PrimeFundseekstoachieveitsinvestment
objectivebyinvestingonlyinU.S.dollardenominatedmoneymarket
33/101
12/24/2014
securitiesofdomesticandforeignissuersratedinthehighestrating
categorybyatleasttwonationallyrecognizedratingservices,U.S.
Governmentsecurities,andrepurchaseagreements.PrimeFundiscurrently
authorizedtoissuetwoclassesofsharesdesignatedPrimeFundDaily
MoneyClassshares,whicharecurrentlyoutstanding,andPrimeFund
CapitalReservesClassshares,whichwillbeissuedinitiallytoMoney
MarketPortfolioshareholdersinconnectionwiththeReorganization.
forthconciselytheinformationabouttheReorganizationandPrimeFund
thatashareholdershouldknowbeforevotingontheproposed
PrimeFundDailyMoneyClass,datedMay30,1997.TheStatementof
AdditionalInformationforPrimeFundDailyMoneyClass,datedMay30,
1997,isavailableuponrequest.TheProspectusandtheStatementof
AdditionalInformationforPrimeFundDailyMoneyClasshavebeenfiled
withtheSecuritiesandExchangeCommission(theSEC)andareincorporated
hereinbyreference.AStatementofAdditionalInformation,datedJuly21,
1997,relatingtothisProxyStatementhasbeenfiledwiththeSECandis
incorporatedhereinbyreference.AProspectus,datedNovember29,1996
(assupplementedMarch21,1997),andaStatementofAdditional
Information,datedNovember29,1996(assupplementedJanuary2,1997),for
MoneyMarketPortfoliohavebeenfiledwiththeSECandareincorporated
hereinbyreference.Copiesofthesedocuments,aswellaseachfund'smost
recentannualandsemiannualreports,maybeobtainedwithoutchargeby
contactingFidelityClientServicesat82DevonshireStreet,Boston,
Massachusetts02109orbycalling18008433001.
TABLEOFCONTENTS
VOTINGINFORMATION
SYNOPSIS
ADDITIONALINFORMATIONABOUTPRIMEFUND
MISCELLANEOUS
EXHIBIT1.FORMOFAGREEMENTANDPLANOFREORGANIZATIONOFMONEYMARKET
PORTFOLIO
18008433001
_________________________________
VOTINGINFORMATION
usedattheSpecialMeetingofShareholdersofCapitalReserves:Money
MarketPortfolio(MoneyMarketPortfolioorthefund)andatany
adjournmentsthereof(theMeeting),tobeheldonWednesday,September17,
Massachusetts02109,theprincipalexecutiveofficeofthetrustand
FidelityManagement&ResearchCompany(FMR),thefund'sinvestment
adviser.
anticipatedcostofapproximately$154,300.Theexpensesinconnection
withpreparingthisProxyStatementanditsenclosuresandofall
solicitationswillbebornebythefund;however,becauseFMRhas
voluntarilyagreedtolimitthefund'stotaloperatingexpenses,itis
expectedthattheseexpenseswilleffectivelybebornebyFMR.FMRwill
reimbursebrokeragefirmsandothersfortheirreasonableexpensesin
forwardingsolicitationmaterialtothebeneficialownersofshares.
34/101
12/24/2014
MoneyMarketPortfoliomayalsoarrangetohavevotesrecordedby
telephone.D.F.King&Co.maybepaidonapercallbasisfor
OnApril30,1997,therewere2,512,804,938sharesofPrimeFundDaily
MoneyClass(thenDailyMoneyFund:MoneyMarketPortfolioInitialClass)
issuedandoutstanding.
OnApril30,1997,therewere1,574,300,010sharesofMoneyMarket
Portfolioissuedandoutstanding.ShareholdersofrecordofMoneyMarket
PortfolioatthecloseofbusinessonJuly21,1997,willbeentitledto
voteattheMeeting.Eachsuchshareholderwillbeentitledtoonevote
foreachfullshareheldonthatdateandaproportionateshareofonevote
foreachfractionalshareheldonthatdate.
theaggregatelessthan1%ofthesharesofMoneyMarketPortfolioand
PrimeFund(thenDailyMoneyFund:MoneyMarketPortfolio),respectively.
ofMoneyMarketPortfolio'sorPrimeFund'soutstandingshares:
PERCENTAGEOFOUTSTANDING
SHAREHOLDERADDRESSFUNDSHARES
MONEYMARKETPORTFOLIO
H.D.VestInvestmentIrving,TX5.37%
Securities,Inc.
CommonwealthEquityWaltham,MA5.25%
Services
MMLInvestorsServices,Springfield,MA5.18%
Inc.
PRIMEFUNDDAILY
MONEYCLASS
LNCEquitySalesFortWayne,IN5.49%
sharesofMoneyMarketPortfolioorPrimeFundonthatdate.Ifthe
ReorganizationbecameeffectiveatApril30,1997,theaboveshareholders
ofMoneyMarketPortfoliowouldhaveownedofrecordorbeneficiallythe
samepercentagesshownaboveofPrimeFundCapitalReservesClass;the
aboveshareholderofPrimeFundDailyMoneyClasswouldhaveownedof
recordorbeneficiallythesamepercentageshownaboveofPrimeFund
DailyMoneyClass;andnoneoftheaboveshareholderswouldhaveownedof
recordorbeneficially5%ormoreofPrimeFundasawhole.
35/101
12/24/2014
VOTEOFA"MAJORITYOFTHEOUTSTANDINGVOTINGSECURITIES"OFMONEYMARKET
PORTFOLIO.UNDERTHEINVESTMENTCOMPANYACTOF1940(THE1940ACT),THE
VOTEOFA"MAJORITYOFTHEOUTSTANDINGVOTINGSECURITIES"MEANSTHE
AFFIRMATIVEVOTEOFTHELESSEROF(A)67%ORMOREOFTHEVOTINGSECURITIES
PRESENTATTHEMEETINGORREPRESENTEDBYPROXYIFTHEHOLDERSOFMORETHAN
50%OFTHEOUTSTANDINGVOTINGSECURITIESAREPRESENTORREPRESENTEDBY
PROXYOR(B)MORETHAN50%OFTHEOUTSTANDINGVOTINGSECURITIES.BROKER
NONVOTESARENOTCONSIDERED"PRESENT"FORTHISPURPOSE.
SYNOPSIS
SUMMARY
thisProxyStatement,intheAgreement,andintheProspectusesofMoney
MarketPortfolioandPrimeFundDailyMoneyClass,whichareincorporated
hereinbythisreference.ShareholdersshouldreadtheentireProxy
StatementandtheenclosedProspectusofPrimeFundDailyMoneyClass
carefullyformorecompleteinformationabouttheReorganizationandPrime
Fund.
TheproposalistomergeMoneyMarketPortfoliointoanewlycreatedclass
CapitalReservesClassofPrimeFund,alargermoneymarketfundalso
managedbyFMR.FMRispresentingsimilarproposalstoalloftheCapital
ReservesPortfoliositmanages.MergingMoneyMarketPortfoliointoPrime
FundCapitalReservesClasswillhelpFMRmanagethefundsmore
efficiently.
PrimeFundCapitalReservesClassisdesignedtobesimilartoMoney
MarketPortfolio.Youwillnothavetochangehowyoudobusinesswith
Fidelityorhavetotakeanyotheraction(otherthanvoting)tomaintain
yourinvestment.
PrimeFundhasslightlydifferentinvestmentpoliciesthanMoneyMarket
Portfolio.BothPrimeFundandMoneyMarketPortfolioinvestinU.S.
dollardenominatedmoneymarketsecuritiesratedinthehighestrating
category("firsttier"securities).MoneyMarketPortfolio,however,may
alsoinvestinU.S.dollardenominatedmoneymarketsecuritiesratedinthe
secondhighestratingcategory("secondtier"securities)andinsecurities
thatmaybedeemedtobeeitherfirsttierorsecondtier("splitrated"
securities).Notinvestinginsecondtierorsplitratedsecuritieswill
negativelyimpactPrimeFundCapitalReservesClass'syield
approximately0.02%0.04%peryearcomparedtoMoneyMarketPortfolio.
Thisimpactshouldbeoffset,however,bythe0.09%expensereductionif
theReorganizationisapproved.
MoneyMarketPortfolioandPrimeFund(collectivelythe"Funds"oreach
individuallya"Fund")haveessentiallythesameinvestmentobjective.
MoneyMarketPortfolioseeksashighalevelofcurrentincomeasis
consistentwiththepreservationofcapitalandliquiditybyinvestingin
moneymarketinstruments.PrimeFundseekstoobtainashighalevelof
liquidity.
MoneyMarketPortfolioinvestsonlyinhighqualityU.S.dollardenominated
moneymarketsecuritiesofdomesticandforeignissuers,includingU.S.
Governmentsecuritiesandrepurchaseagreements.PrimeFundinvestsonly
inU.S.dollardenominatedmoneymarketsecuritiesofdomesticandforeign
issuersratedinthehighestratingcategorybyatleasttwonationally
recognizedratingservices,U.S.Governmentsecurities,andrepurchase
agreements.InadditiontopermissibleinvestmentsforPrimeFund,Money
MarketPortfoliomayinvestinfirsttiersecuritiesratedinthehighest
ratingcategorybyonlyoneratingserviceandinsecondtiersecurities.
EachFundalsomayenterintoreverserepurchaseagreements.
EXPENSESTRUCTURE
PrimeFundCapitalReservesClasshaslowerexpensesthanMoneyMarket
Portfolio.Thus,ifshareholdersapprovetheReorganization,theywill
havelowercostsontheirinvestments.
MoneyMarketPortfoliocurrentlypaysFMRamonthlymanagementfeeatan
annualrateof0.50%ofitsaveragenetassets.Also,underaDistribution
andServicePlanadoptedpursuanttoRule12b1underthe1940Act,the
Fundpaysitsdistributor,NationalFinancialServicesCorporation(NFSC),
amonthlydistributionfeeatanannualrateof0.35%ofitsaveragenet
assets.Thus,MoneyMarketPortfoliocurrentlypaystotalmanagementand
distributionfeesof0.85%.Inaddition,theFund'sDistributionand
ServicePlanspecificallyrecognizesthatFMRmaymakepaymentsfromits
managementfeerevenue,pastprofits,orotherresources(notfromthe
Fund'sassets)tocompensatefinancialintermediaries(includingNFSC)for
providingdistributionrelatedservicesfortheFund.TheBoardof
TrusteesofDailyMoneyFundhasauthorizedFMRtomakesuchpaymentsofup
to0.25%oftheFund'saveragenetassetsthroughoutthemonthbasedupon
thelevelofshareholdersupportanddistributionservicesprovided.FMR
hasvoluntarilyagreedtoreimburseMoneyMarketPortfoliototheextent
36/101
12/24/2014
assets.
IfMoneyMarketPortfolioshareholdersapprovetheReorganization,they
willreceivePrimeFundCapitalReservesClassshares,whichwillpaya
0.25%managementfeeanda0.50%distributionfee.Thetotalmanagement
anddistributionfeesof0.75%tobepaidbyPrimeFundCapitalReserves
Classwillbe0.10%lower,asapercentageofaveragenetassets,thanthe
totalmanagementanddistributionfeesof0.85%currentlypaidbyMoney
MarketPortfolio.Inaddition,theDistributionandServicePlanforPrime
FundCapitalReservesClassshareswillspecificallyrecognizethatFMR
maymakepaymentsfromitsmanagementfeerevenue,pastprofitsorother
resources(notfromtheClass'sassets)tocompensatefinancial
intermediariesforprovidingdistributionrelatedservicestotheClass.
FMRhasvoluntarilyagreedtoreimbursePrimeFundCapitalReservesClass
totheextentthatitstotaloperatingexpenses(excludinginterest,taxes,
brokeragecommissions,andextraordinaryexpenses)exceed0.90%ofits
averagenetassets0.09%lowerthanMoneyMarketPortfolio's0.99%
voluntaryexpenselimitation.AlthoughFMRmayterminatethevoluntary
expenselimitationwithrespecttoPrimeFundCapitalReservesClassat
anytimewithoutpriornoticetoshareholders,FMRhasnocurrentintention
ofdoingso.
Insum,theReorganizationwouldgiveshareholdersofMoneyMarket
Portfoliotheopportunitytoparticipateinalargermoneymarketfundwith
essentiallythesameinvestmentobjective,acomparableinvestment
portfolio,0.10%lowertotalmanagementanddistributionfees,anda0.09%
lowertotaloperatingexpenseratio,afterreimbursement.
TheBoardofTrusteesbelievesthattheReorganizationwouldbenefitMoney
MarketPortfolio'sshareholdersandrecommendsthatshareholdersvotein
favoroftheReorganization.
ShareholdersofMoneyMarketPortfoliowillbeaskedattheMeetingto
voteuponandapprovetheReorganizationandtheAgreement,whichprovides
fortheacquisitionbyPrimeFundofalloftheassetsofMoneyMarket
PortfolioinexchangesolelyforCapitalReservesClasssharesofPrime
Fund(CapitalReservesClassShares)andtheassumptionbyPrimeFundof
theliabilitiesofMoneyMarketPortfolio.MoneyMarketPortfoliowill
thendistributetheCapitalReservesClassSharestoitsshareholders,so
thateachshareholderwillreceivethenumberoffullandfractional
sharesofMoneyMarketPortfolioheldbysuchshareholderontheClosing
Date(definedbelow).TheexchangeofMoneyMarketPortfolio'sassetsfor
CapitalReservesClassShareswilloccurasof4:00p.m.Easterntimeon
October30,1997,orsuchotherdateasthepartiesmayagree(theClosing
Date).MoneyMarketPortfoliowillthenbeliquidatedassoonas
practicablethereafter.
notresultinanygainorlossforfederalincometaxpurposestoMoney
MarketPortfolioorPrimeFundortotheshareholdersofeitherFund.The
rightsandprivilegesoftheformershareholdersofMoneyMarketPortfolio
willbeeffectivelyunchangedbytheReorganization,exceptasdescribedon
page10undertheheading"FormsofOrganization."
MoneyMarketPortfolioshareholderscurrentlyincur,andtheshareholder
transactionexpensesthatPrimeFundCapitalReservesClassshareholders
willincuraftergivingeffecttotheReorganization,and(ii)thecurrent
feesandexpensesofMoneyMarketPortfolioforthe12monthsendedJanuary
31,1997(unaudited),andtheproformafeesforPrimeFundCapital
ReservesClassbasedonthesameperiod(unaudited)aftergivingeffectto
theReorganization.
[DownloadTable]
PRIMEFUNDCAPITAL
MONEYMARKETPORTFOLIORESERVESCLASS
ExchangefeeNoneNone
thecaseofPrimeFund,areallocatedtotheappropriateClass,as
37/101
12/24/2014
ThefollowingfiguresforMoneyMarketPortfolioarebasedonhistorical
expenses.ThefollowingproformaexpensesforPrimeFundCapital
ReservesClassarebasedontheproposedexpensestructuredescribedabove,
withOtherExpensesestimated.Allfiguresarecalculatedasapercentage
ofaveragenetassets.
PROFORMAEXPENSES
MONEYPRIMEFUND
MARKETCAPITALRESERVESCLASS
PORTFOLIO
*FMRhasvoluntarilyagreedtoreimburseMoneyMarketPortfoliotothe
extentthattotaloperatingexpenses(excludinginterest,taxes,brokerage
commissions,andextraordinaryexpenses)exceed0.99%oftheFund'saverage
netassets.Ifthisagreementwerenotineffect,theFund'smanagement
feeandtotaloperatingexpenses,asapercentageofaveragenetassets,
wouldhavebeen0.50%and1.15%,respectively.
**FMRhasvoluntarilyagreedtoreimbursePrimeFundCapitalReserves
Classtotheextentthattotaloperatingexpenses(excludinginterest,
taxes,brokeragecommissions,andextraordinaryexpenses)exceed0.90%of
theClass'saveragenetassets.Ifthisagreementwerenotineffect,the
Class'sotherexpensesandtotaloperatingexpenses,asapercentageof
averagenetassets,wouldbeestimatedtobe0.30%and1.05%,respectively.
investmentinMoneyMarketPortfoliounderitscurrentexpenses,andin
PrimeFundCapitalReservesClassundertheproformaexpenses,
calculatedattherates(afterreimbursement)statedabove,assuminga5%
annualreturn.
[DownloadTable]
MoneyMarketPortfolio$10$32$55$121
PrimeFundCapital$9$29$50$111
ReservesClass
DISTRIBUTOR.NFSCdistributesMoneyMarketPortfolio'sshares.Fidelity
DistributorsCorporation(FDC),anaffiliateofFMR,currentlydistributes
PrimeFund'ssharesandwilldistributePrimeFundCapitalReservesClass
sharesfollowingtheReorganization.
Rule12b1underthe1940Act,MoneyMarketPortfoliocurrentlypaysNFSCa
monthlydistributionfeeatanannualrateof0.35%oftheFund'saverage
netassets.Inaddition,theMoneyMarketPortfolioplanspecifically
recognizesthatFMRmaymakepaymentsfromitsmanagementfeerevenue,past
profits,orotherresourcestocompensatefinancialintermediaries
(includingNFSC)forprovidingdistributionrelatedservicesfortheFund.
TheBoardofTrusteesofDailyMoneyFundhasauthorizedFMRtomakesuch
paymentsofupto0.25%oftheFund'saveragenetassetsthroughoutthe
monthbaseduponthelevelofshareholdersupportanddistributionservices
provided.
IfshareholdersapprovetheReorganization,PrimeFundCapitalReserves
ClassshareswillbesubjecttoaDistributionandServicePlanadopted
pursuanttoRule12b1underthe1940Act.Undertheplan,Capital
distributionofCapitalReservesClasssharesofPrimeFund.Capital
38/101
12/24/2014
FMRoritsaffiliates,notbyPrimeFund,andwillnotbepaidfor
ForFMRTexas'sservicestoMoneyMarketPortfolio,FMRpaysFMRTexas50%
ofitsmanagementfee(beforeexpensereimbursementsbutafterpayments
madebyFMRpursuanttotheFund'sDistributionandServicePlan).ForFMR
Texas'sservicestoPrimeFund,FMRpaysFMRTexas50%ofitsmanagement
fee(beforeexpensereimbursements).
FORMSOFORGANIZATION
MoneyMarketPortfolioisadiversifiedfundofDailyMoneyFund,an
trustonSeptember29,1993.DailyMoneyFundisauthorizedtoissuean
unlimitednumberofsharesofbeneficialinterest.MoneyMarketPortfolio
isauthorizedtoissueoneclassofshares.
PrimeFundisadiversifiedfundofNewburyStreetTrust,anopenend
December30,1991.BeforeMay30,1997,PrimeFundwasaseriesofa
differenttrust,DailyMoneyFund,andwasknownasDailyMoneyFund:Money
MarketPortfolio.Also,beforeMay30,1997,NewburyStreetTrustwas
knownasDailyTaxExemptMoneyFund.EffectiveMay30,1997,DailyMoney
Fund:MoneyMarketPortfoliowasreorganizedintoanewlyestablished
separateseriesofDailyTaxExemptMoneyFund,pursuanttoanAgreement
andPlanofReorganizationapprovedonMay9,1997,byshareholdersof
DailyMoneyFund:MoneyMarketPortfolio.Inconnectionwiththat
reorganization,DailyMoneyFund:MoneyMarketPortfoliowasrenamedPrime
FundandDailyTaxExemptMoneyFundwasrenamedNewburyStreetTrust.
NewburyStreetTrustisauthorizedtoissueanunlimitednumberofshares
ofbeneficialinterest.PrimeFundiscurrentlyauthorizedtoissuetwo
classesofsharesdesignatedPrimeFundDailyMoneyClass(formerlyDaily
MoneyFund:MoneyMarketPortfolioInitialClass)shares,whichare
currentlyoutstanding,andPrimeFundCapitalReservesClassshares,
whichwillbeissuedinitiallytoMoneyMarketPortfolioshareholdersin
connectionwiththeReorganization.AseparatefilingwiththeSecurities
andExchangeCommission(theSEC)willbemadepriortotheClosingDateof
theReorganizationforthepurposeofregisteringPrimeFundCapital
ReservesClasssharesforsale.
BecauseMoneyMarketPortfolioandPrimeFundareseriesofDelaware
businesstrusts,organizedundersubstantiallysimilarTrustInstruments,
therightsofthesecurityholdersofMoneyMarketPortfoliounderstate
lawandthegoverningdocumentsareexpectedtoremainunchangedafterthe
Reorganization,exceptwithregardtoshareholdervotingrights.
ShareholdervotingrightsforMoneyMarketPortfolioarebasedonthe
numberofFundsharesowned(sharebasedvoting),whereasshareholder
votingrightsforPrimeFundarebasedonthetotaldollarinterestin
PrimeFund(dollarbasedvoting).IfMoneyMarketPortfolioshareholders
approvetheReorganization,theirvotingrightswouldnotbeaffected
becauseimmediatelyfollowingtheReorganizationNewburyStreetTrustwill
compriseonlymoneymarketfunds,whicharemanagedtomaintainastable
$1.00shareprice.However,iffundswithfluctuatingnetassetvaluesper
shareareaddedtoNewburyStreetTrustinthefuture,relativevoting
rightswouldbeaffected.Inthatevent,whilethedifferencesbetweenthe
Funds'votingrightswouldhavenobearingonmattersaffectingonlyone
fundofthetrust,onmattersrequiringtrustwidevotesinwhichallfunds
ofthetrustparticipate,dollarbasedvotingwouldprovideshareholders
withvotingpowerthatisproportionatetotheireconomicinterest,whereas
sharebasedvotingmayprovideshareholderswhoownsharesofafundwitha
lowernetassetvaluepershare(NAV)thanotherfundsinthetrustwitha
disproportionateabilitytoaffectatrustwidevoterelativeto
shareholdersofotherfundsinthetrust.IfMoneyMarketPortfolio
shareholdersapprovetheReorganization,theirvotingrightswillchangeto
reflectthoseofPrimeFundshareholders.Formoreinformationregarding
shareholderrights,refertothesectionofeachFund'sStatementof
AdditionalInformationcalled"DescriptionoftheTrust."
TheFundshaveessentiallythesameinvestmentobjective.MoneyMarket
Portfolioseeksashighalevelofcurrentincomeasisconsistentwiththe
preservationofcapitalandliquiditybyinvestinginmoneymarket
39/101
12/24/2014
instruments.PrimeFundseekstoobtainashighalevelofcurrentincome
asisconsistentwiththepreservationofcapitalandliquidity.
InvestmentsintheFundsareneitherinsurednorguaranteedbytheU.S.
Government,andtherecanbenoassurancethataFundwillmaintaina
stable$1.00shareprice.
Federalregulationslimitmoneymarketfundinvestmentstohighquality
securities.Tobehighquality,asecuritymustberatedinaccordance
withapplicablerulesinoneofthetwohighestcategoriesforshortterm
securitiesbyatleasttwonationallyrecognizedratingservices(orby
one,ifonlyoneratingservicehasratedthesecurity)or,ifunrated,
judgedtobeofequivalentqualitybyFMR.Highqualitysecuritiesare
dividedinto"firsttier"securities(thosesecuritiesdeemedtobeinthe
highestratingcategory)and"secondtier"securities(thosesecurities
deemedtobeinthesecondhighestratingcategory)."Splitrated"
securitiesmaybedeemedtobeeitherfirsttierorsecondtierbasedon
applicableregulations.
MoneyMarketPortfolioinvestsonlyinhighqualityU.S.
dollardenominatedmoneymarketsecuritiesofdomesticandforeignissuers,
includingU.S.Governmentsecuritiesandrepurchaseagreements.PrimeFund
investsonlyinU.S.dollardenominatedmoneymarketsecuritiesofdomestic
andforeignissuersratedinthehighestratingcategorybyatleasttwo
nationallyrecognizedratingservices,U.S.Governmentsecurities,and
repurchaseagreements.InadditiontopermissibleinvestmentsforPrime
Fund,MoneyMarketPortfoliomayinvestinfirsttiersecuritiesratedin
thehighestratingcategorybyonlyoneratingserviceandinsecondtier
securities.EachFundalsomayenterintoreverserepurchaseagreements.
IfshareholdersapprovetheReorganization,itisanticipatedthatMoney
MarketPortfoliowillsellanysecondtierorsplitratedsecuritiesinthe
periodbetweenshareholderapprovalandtheClosingDate.(See"Comparison
ofPrincipalRiskFactors,"page14.)FMRanticipatesthattheimpactof
notpurchasingsecondtierorsplitratedsecuritiesonMoneyMarket
Portfolio'syieldwillbeapproximately0.02%0.04%.The0.02%0.04%yield
differenceshouldbeoffset,however,bythe0.09%lowertotaloperating
expenseratio(afterreimbursement)ofPrimeFundCapitalReservesClass
sharesfollowingtheReorganization.Intheeventthatthesaleofeither
Fund'sassetsbecomesnecessarypriortotheeffectivedateofthe
Reorganization,anytransactioncostsassociatedwithsuchadjustmentswill
bebornebytheindividualFundthatincurredthem.
oranyofitsagenciesorinstrumentalitiesor(PrimeFundonly)securities
ofotherinvestmentcompanies)if,asaresult,(a)morethan5%ofthe
Fund'stotalassetswouldbeinvestedinthesecuritiesofthatissuer,or
(b)theFundwouldholdmorethan10%oftheoutstandingvotingsecurities
ofthatissuer.Furthermore,eachFundhasanonfundamentalpolicy,which
isrequiredbyfederalregulationsapplicabletotaxablemoneymarket
funds,thatprecludesitfrominvestingmorethan5%ofitstotalassetsin
anyoneissuer,exceptthateachFundmayinvestupto25%ofitstotal
assetsinthehighestqualitysecuritiesofasingleissuerforuptothree
businessdays.
onlyfortemporaryoremergencypurposesandengageinreverserepurchase
agreementsforanypurpose,butnotinanamountexceeding331/3%ofits
totalassets(includingtheamountborrowed)lessliabilities(otherthan
borrowings).Asamatterofnonfundamentalpolicy,eachFundmayborrow
moneyonlyfrombanksorotherfundsadvisedbyFMRoranaffiliateofFMR,
orbyengaginginreverserepurchaseagreementswithanyparty,andeach
Fundmaymakeadditionalinvestmentswhileborrowingsareoutstanding.
nonfundamentalpolicy,withtheexceptionofpurchasingdebtsecurities
andenteringintorepurchaseagreements,neitherFundcurrentlyintendsto
lendassetsotherthansecuritiestootherparties,exceptbylendingmoney
(upto10%ofitsassets)tootherfundsadvisedbyFMRoranaffiliateof
FMR.
inilliquidsecuritiesandwillinvestmorethan25%ofitstotalassetsin
thefinancialservicesindustry.Consistentwithitsinvestmentobjective
andpolicies,eachFundalsomayenterintowhenissuedandforward
purchaseorsaletransactionsandmayinvestinassetbackedsecurities,
variableandfloatingratesecurities,strippedsecurities,commercial
paper,certificatesofdeposit,bankers'acceptances,timedeposits,and
40/101
12/24/2014
securitieswithputfeatures.NeitherFundcurrentlyintendstopurchase
futurescontractsoroptionsonfuturescontracts.Withrespecttoeach
Fund,thisoperatingpolicymaybechangedonlywiththeTrustees'approval
and60days'noticetoshareholders.
itsaffiliates,whosegoalistoseekahighlevelofcurrentincomewhile
maintainingastable$1.00shareprice.However,neitherFundcurrently
intendstoinvestinamoneymarketfund.
bothFunds,regardingaFund'sinvestmentsin(i)thesecuritiesofother
investmentcompanies,(ii)thesecuritiesofunseasonedissuers,and(iii)
oil,gas,andmineralexplorationprograms.Thesenonfundamentalpolicies
wereoriginallyadoptedwithrespecttoeachFundsolelyinresponseto
statelawrequirements,whichwereinadditionto,andinmanycaseswere
morerestrictivethan,federallawrequirements.Thesestatelaw
requirementsarenolongerapplicable.
OPERATIONSOFPRIMEFUNDFOLLOWINGTHEREORGANIZATION
FMRdoesnotexpectPrimeFundtoreviseitsinvestmentobjectiveor
anticipatesignificantchangestoPrimeFund'smanagementortoagentsthat
providePrimeFundwithservices.Specifically,theTrusteesandofficers,
theinvestmentadviserandsubadviser,thedistributor,andotheragents
willcontinuetoservePrimeFundintheircurrentcapacities.
BecausePrimeFund'sinvestmentpoliciesdifferinsomerespectsfrom
MoneyMarketPortfolio'sinvestmentpolicies,certainofthesecurities
currentlyheldbyMoneyMarketPortfoliomayneedtobesoldratherthan
transferredtoPrimeFund.Asexplainedbelowunder"Comparisonof
PrincipalRiskFactors,"MoneyMarketPortfoliomayinvestinsecondtier
securitiesandinsplitratedsecurities,whereasPrimeFundmaynotas
longasitisratedAaaandAAAmbyMoody'sInvestorService(Moody's)and
Standard&Poor's(S&P),respectively.Therefore,ifshareholdersapprove
theReorganization,itisanticipatedthatMoneyMarketPortfoliowillsell
anysecondtierorsplitratedsecuritiesintheperiodbetweenshareholder
approvalandtheClosingDate.Anytransactioncostsassociatedwithsuch
adjustmentstotheportfolioofMoneyMarketPortfoliowillbeborneby
MoneyMarketPortfolio.Intheeventthatthesaleofanyassetsbecomes
necessaryaftertheeffectivedateoftheReorganization,anytransaction
costsassociatedwithsuchadjustmentswillbebornebyPrimeFund.
PrimeFundiscurrentlyauthorizedtoissuetwoclassesofshares
designatedPrimeFundDailyMoneyClassshares,whicharecurrently
outstanding,andPrimeFundCapitalReservesClassshares,whichwillbe
issuedinitiallytoMoneyMarketPortfolioshareholdersinconnectionwith
theReorganization.MoneyMarketPortfolioiscurrentlyauthorizedto
issueonlyoneclassofshares.
BothMoneyMarketPortfolioandPrimeFundCapitalReservesClass
requireaminimuminitialinvestmentof$1,000,aminimumsubsequent
investmentof$250,andaminimumaccountbalanceof$500.BothMoney
MarketPortfoliosharesandPrimeFundCapitalReservesClasssharesare
soldwithoutasalescharge.
MoneyMarketPortfolioisopenforbusinessanditsNAVisnormally
calculatedeachdaythatboththeFederalReserveBankofNewYork(New
YorkFed)andtheNewYorkStockExchange(NYSE)areopen.PrimeFundis
openforbusinessandtheNAVofCapitalReservesClasssharesisnormally
calculatedeachdaythattheNYSEisopen.Thefollowingholidayclosings
havebeenscheduledfor1997:NewYear'sDay,MartinLutherKing's
Day,LaborDay,ColumbusDay(NewYorkFedonly),VeteransDay(NewYork
Fedonly),ThanksgivingDay,andChristmasDay.AlthoughFMRexpectsthe
sameholidayscheduletobeobservedinthefuture,theNewYorkFedorthe
NYSEmaymodifyitsholidayscheduleatanytime.
MoneyMarketPortfoliosharesandPrimeFundCapitalReservesClass
sharesarepurchasedatthenextsharepricecalculatedafteranorderis
receivedandaccepted.Sharepriceisnormallycalculatedat2:00p.m.and
4:00p.m.Easterntime.Sharesmaybepurchasedbymail,bywire,orby
exchangefromanotherFidelityfund.NeitherMoneyMarketPortfolionor
PrimeFundCapitalReservesClassimposesafeeforwirepurchases;
however,ifsharesarepurchasedthroughaninvestmentprofessional,the
investmentprofessionalmayimposeafeeforwirepurchases.Shares
purchasedbefore2:00p.m.Easterntimeareentitledtodividendsdeclared
thatday.Sharespurchasedafter2:00p.m.Easterntimebegintoearn
dividendsonthefollowingbusinessday.
includingcertainpurchasesbyexchange.OnanydaythattheNewYorkFed
(MoneyMarketPortfolioonly)ortheNYSEclosesearly,theprincipal
41/101
12/24/2014
governmentsecuritiesmarketscloseearly(suchasondaysinadvanceof
holidaysgenerallyobservedbyparticipantsinthemarkets),oras
permittedbytheSEC,eachFundreservestherighttoadvancethetimeon
thatdaybywhichpurchaseandredemptionordersmustbereceived.Tothe
extentthatportfoliosecuritiesaretradedinothermarketsondayswhen
theNewYorkFed(MoneyMarketPortfolioonly)ortheNYSEisclosed,a
Fund's/Class'ssharepricemaybeaffectedondayswhenshareholdersdonot
haveaccesstotheFundtopurchaseorredeemshares.
FidelityInvestmentsInstitutionalOperationsCompany,Inc.,anaffiliate
ofFMR,performstransferagency,dividenddisbursing,andshareholder
servicesforthesharesofeachFund.FidelityServiceCompany,Inc.,also
anaffiliateofFMR,calculatestheNAVanddividendsforthesharesof
eachFundandmaintainsthegeneralaccountingrecordsforeachFund.NFSC
distributesMoneyMarketPortfolio'sshares.FDCcurrentlydistributes
PrimeFund'ssharesandwilldistributePrimeFundCapitalReservesClass
sharesfollowingtheReorganization.
BothMoneyMarketPortfoliosharesandPrimeFundCapitalReservesClass
sharesmayberedeemedonanybusinessdayattheirrespectiveshareprice.
Sharesareredeemedatthenextsharepricecalculatedafteranorderis
receivedandaccepted.Asstatedabove,sharepriceisnormallycalculated
at2:00p.m.and4:00p.m.Easterntime.Sharesredeemedbefore2:00p.m.
Easterntimedonotreceivethedividenddeclaredonthedayofredemption.
Sharesredeemedafter2:00p.m.Easterntimedoreceivethedividend
declaredonthedayofredemption.
BothMoneyMarketPortfoliosharesandPrimeFundCapitalReservesClass
sharesmayberedeemedbymail,bytelephone,orbywire.BothMoney
MarketPortfolioandPrimeFundCapitalReservesClassalsooffer
checkwritingprivileges;theminimumamountforacheckis$500.Neither
MoneyMarketPortfolionorPrimeFundCapitalReservesClasschargesa
feeforwireredemptions;however,ifsharesaresoldthroughaninvestment
professional,theinvestmentprofessionalmaychargeafeeforwire
redemptions.RedemptionproceedswillbewiredviatheFederalReserve
WireSystemtotheredeemingshareholder'sbankaccountofrecord.Ifa
Fund'stransferagentreceivesaredemptionrequestbefore2:00p.m.
Easterntime,redemptionproceedswillnormallybewiredonthatday.Ifa
Fund'stransferagentreceivesaredemptionrequestafter2:00p.m.Eastern
time,redemptionproceedswillnormallybewiredonthefollowingbusiness
day.
collected.WhentheNewYorkFed(MoneyMarketPortfolioonly)ortheNYSE
isclosed(orwhentradingisrestricted)foranyreasonotherthanits
customaryweekendorholidayclosings,orunderanyemergencycircumstances
asdeterminedbytheSECtomeritsuchaction,eachFundmaysuspend
redemptionorpostponepaymentdates.
InthecaseofbothMoneyMarketPortfolioandPrimeFundCapital
ReservesClass,ifashareholder'saccountbalancefallsbelow$500,the
shareholderwillbegiven30days'noticetoreestablishtheminimum
balance.Iftheshareholderdoesnotincreasethebalance,Fidelity
reservestherighttoclosetheshareholder'saccountandsendtheproceeds
totheshareholder.Shareswillberedeemedattheirsharepriceonthe
daytheaccountisclosed.
thatcurrentlyapplytoMoneyMarketPortfolioshareswillapplytoPrime
FundCapitalReservesClassshares.MoneyMarketPortfolioshareholders
mayredeemtheirshares,orexchangetheirsharesforsharesofanyother
availableFidelityfund,throughtheClosingDate.
EXCHANGES
MoneyMarketPortfoliosharesmaybeexchangedforsharesofanyother
Fidelityfundavailableintheshareholder'sstate.Inaddition,Money
MarketPortfoliosharesmaybeacquiredthroughanexchangeofsharesof
otherFidelityfunds.Theexchangeprivilegesandrestrictionsthat
currentlyapplytoMoneyMarketPortfolioshareswillapplytoPrimeFund
CapitalReservesClasssharesfollowingtheReorganization.RefertoMoney
MarketPortfolio'sProspectusformoreinformationregardinghowto
exchangeshares.
(or,inthecaseofPrimeFund,sharesofthesameClassoftheFund)
paidincash.
OnorbeforetheClosingDate,MoneyMarketPortfoliowilldeclareoneor
moredividendsordistributionswhich,togetherwithallsuchprevious
dividendsanddistributionsattributabletoitscurrenttaxableyear,will
havetheeffectofdistributingsubstantiallyallofitsinvestmentcompany
42/101
12/24/2014
taxableincomeandnetrealizedcapitalgains,ifany,inordertomaintain
itstaxstatusasaregulatedinvestmentcompany.
SHAREHOLDERSERVICES
BothMoneyMarketPortfolioandPrimeFundCapitalReservesClassoffer
subaccountingandspecialservicesforinstitutionsthatwishtoopen
multipleaccounts(amasteraccountandsubaccounts).RefertoMoney
MarketPortfolio'sProspectusformoreinformationregardingthese
services.
MoneyMarketPortfolioandPrimeFundhadcapitallosscarryforwardsfor
federaltaxpurposesaggregatingapproximately$79,000and$764,000asof
July31,1996andOctober31,1996,respectively.Undercurrentfederaltax
law,PrimeFundmaybelimitedtousingonlyaportion,ifany,ofthe
capitallosscarryforwardtransferredbyMoneyMarketPortfolioatthetime
oftheReorganization.ThereisnoassurancethatPrimeFundwillbeable
torealizesufficientcapitalgainstouseitscapitallosscarryforwardas
wellasaportion,ifany,ofMoneyMarketPortfolio'scapitalloss
carryforward,beforetheyexpire.Thecapitallosscarryforward
attributabletoMoneyMarketPortfoliowillexpireonJuly31,2002.The
capitallosscarryforwardattributabletoPrimeFundwillexpirebetween
October31,2000andOctober31,2003.
ratingservicehasratedthesecurity)or,ifunrated,judgedtobeof
equivalentqualitybyFMR.Highqualitysecuritiesaredividedinto"first
tier"securities(thosesecuritiesdeemedtobeinthehighestrating
category)and"secondtier"securities(thosesecuritiesdeemedtobein
thesecondhighestratingcategory)."Splitrated"securitiesmaybe
deemedtobeeitherfirsttierorsecondtierbasedonapplicable
regulations.Thematurity(calculatedaccordingtoapplicableregulations)
ofeachinvestmentcannotexceed397days,andamoneymarketfund's
dollarweightedaveragematuritycannotexceed90days.These
requirements,coupledwitheachFund'semphasisonfirsttiersecurities,
meanthattheFundshavesubstantiallysimilarlevelsofrisk.
page11).TheFundsdiffer,however,inthequalityoftheirportfolio
securities.PrimeFundiscurrentlyratedAaaandAAAmbyMoody'sandS&P,
respectively,andthus(i)mayinvestonlyinfirsttiersecurities,(ii)
maynotinvestinsplitratedsecurities,and(iii)generallyseeksto
maintainanaveragematurityof60daysorless.MoneyMarketPortfoliois
notaratedfund,althoughitsaveragematurityiscurrentlylessthanthe
60daymaximumforAaa/AAAmratedfunds.MoneyMarketPortfoliomayinvest
infirsttierorsecondtiersecuritiesandinsplitratedsecurities.
AlthoughPrimeFund'scurrentratinglimitsitspermissibleinvestmentsto
firsttiersecurities,eachFundissubjecttoregulationsthatprecludeit
frominvestingmorethan5%ofitstotalassetsinsecondtiersecurities
orinvestingmorethan1%ofitstotalassetsor$1million(whicheveris
greater)inthesecondtiersecuritiesofasingleissuer.
rates.
TOAPPROVEANAGREEMENTANDPLANOFREORGANIZATIONBETWEENMONEYMARKET
PORTFOLIOANDPRIMEFUND
REORGANIZATIONPLAN
thisProxyStatement.
TheAgreementcontemplates(a)PrimeFundacquiringasoftheClosingDate
alloftheassetsofMoneyMarketPortfolioinexchangesolelyforCapital
ReservesClassSharesandtheassumptionbyPrimeFundofMoneyMarket
Portfolio'sliabilities;and(b)thedistributionofCapitalReservesClass
SharestotheshareholdersofMoneyMarketPortfolioasprovidedforinthe
Agreement.
TheassetsofMoneyMarketPortfoliotobeacquiredbyPrimeFundinclude
43/101
12/24/2014
allcash,cashequivalents,securities,receivables(includinginterestor
dividendsreceivables),claims,chosesinaction,andotherpropertyowned
byMoneyMarketPortfolio,andanydeferredorprepaidexpensesshownasan
assetonthebooksofMoneyMarketPortfolioontheClosingDate.Prime
FundwillassumefromMoneyMarketPortfolioallliabilities,debts,
obligations,anddutiesofMoneyMarketPortfolioofwhateverkindor
nature,whetherabsolute,accrued,contingent,orotherwise,whetherornot
arisingintheordinarycourseofbusiness,whetherornotdeterminableon
theClosingDate,andwhetherornotspecificallyreferredtointhe
Agreement;provided,however,thatMoneyMarketPortfoliowilluseitsbest
efforts,totheextentpracticable,todischargeallofitsknown
liabilitiespriortotheClosingDate,otherthanliabilitiesincurredin
theordinarycourseofbusiness.PrimeFundwilldeliverCapitalReserves
ClassSharestoMoneyMarketPortfolio,whichsharesMoneyMarketPortfolio
willthendistributetoitsshareholderssothateachMoneyMarket
Portfolioshareholderwillreceivethenumberoffullandfractional
sharesofMoneyMarketPortfolioheldbysuchshareholderasoftheClosing
Date.
ThevalueofMoneyMarketPortfolio'sassetstobeacquiredbyPrimeFund,
theamountofMoneyMarketPortfolio'sliabilitiestobeassumedbyPrime
Fund,andthesharepriceofaCapitalReservesClassSharewillbe
determinedasofthecloseofbusiness(4:00p.m.Easterntime)ofthe
respectiveFundontheClosingDate.Portfoliosecuritieswillbevalued
onthebasisofamortizedcost.Thistechniqueinvolvesinitiallyvaluing
aninstrumentatitscostasadjustedforamortizationofpremiumor
accretionofdiscountratherthanatitscurrentmarketvalue.The
amortizedcostvalueofaninstrumentmaybehigherorlowerthantheprice
aFundwouldreceiveifitsoldtheinstrument.IftheBoardofTrustees
ofDailyMoneyFundandtheBoardofTrusteesofNewburyStreetTrust
believethatadeviationfromaFund'samortizedcostpersharemayresult
indilutionorotherunfairresultstoshareholders,theBoardshaveagreed
totakesuchcorrectiveaction,ifany,astheydeemappropriateto
eliminateorreduce,totheextentreasonablypracticable,thedilutionor
unfairresults.
AsoftheClosingDate,MoneyMarketPortfoliowilldistributetoits
shareholdersofrecordtheCapitalReservesClassSharesitreceived,so
thateachMoneyMarketPortfolioshareholderwillreceivethenumberof
fullandfractionalsharesofMoneyMarketPortfolioheldbysuch
shareholderontheClosingDate;MoneyMarketPortfoliowillbeliquidated
assoonaspracticablethereafter.Suchdistributionwillbeaccomplished
byopeningaccountsonthebooksofPrimeFundinthenamesoftheMoney
MarketPortfolioshareholdersandbytransferringtheretoCapitalReserves
ClassShares.EachMoneyMarketPortfolioshareholder'saccountshallbe
creditedwiththerespectivePRORATAnumberoffullandfractional
(roundedtothethirddecimalplace)CapitalReservesClassSharesduethat
shareholder.PrimeFundshallnotissuecertificatesrepresentingits
sharesinconnectionwithsuchexchange.
Accordingly,immediatelyaftertheReorganization,eachformerMoney
MarketPortfolioshareholderwillownthenumberofCapitalReservesClass
Sharesequaltothenumberofthatshareholder'ssharesofMoneyMarket
PortfolioimmediatelypriortotheReorganization.ThesharepriceofPrime
Fundwillbeunchangedbythetransaction.Thus,theReorganizationwill
notresultinthedilutionofanyshareholderinterest.
booksofMoneyMarketPortfolioasofthattimeshallbepaidbytheperson
towhomsuchsharesaretobeissuedasaconditionofsuchtransfer.Any
reportingresponsibilityofMoneyMarketPortfolioisandwillcontinueto
beitsresponsibilityuptoandincludingtheClosingDateandsuchlater
dateonwhichMoneyMarketPortfolioisliquidated.
associatedwithportfolioadjustmentstoMoneyMarketPortfolioduetothe
ReorganizationwhichoccurpriortotheClosingDatewhichwillbeborneby
MoneyMarketPortfolio.Anytransactioncostsassociatedwithportfolio
adjustmentsduetotheReorganizationwhichoccuraftertheClosingDate
willbebornebyPrimeFund.AFundmayrecognizeataxablegainorloss
onthedispositionofsecuritiespursuanttotheseportfolioadjustments.
Seethesectionentitled"ReasonsfortheReorganization."
44/101
12/24/2014
Reorganization;
(8)theimpactofchangestotheinstitutionalmoneymarketproductline
ontheFundsandtheirshareholders;and
differencesnoted.
shareholdersofMoneyMarketPortfoliowillreceivePrimeFundCapital
ReservesClassshares,whichwillpaya0.25%managementfeeanda0.50%
distributionfee.Thetotalmanagementanddistributionfeesof0.75%to
bepaidbyPrimeFundCapitalReservesClasswillbe0.10%lower,asa
percentageofaveragenetassets,thanthetotalmanagementand
distributionfeesof0.85%currentlypaidbyMoneyMarketPortfolio.FMR
alsoinformedtheBoardsthatitwouldvoluntarilyagreetoreimbursethe
totaloperatingexpensesofPrimeFundCapitalReservesClasstothe
extentthatsuchexpenses(excludinginterest,taxes,brokerage
assets0.09%lowerthanMoneyMarketPortfolio's0.99%voluntaryexpense
limitation.Inaddition,FMRinformedtheBoardsthatitexpectedtopay
thecostsassociatedwiththeReorganization,includingprofessionalfees
andthecostsofproxysolicitation,underMoneyMarketPortfolio's
voluntaryexpenselimitation.FMRfurtherinformedtheBoardsthatalthough
MoneyMarketPortfoliowouldbearanycosts(asdescribedabove)associated
withportfolioadjustmentsmadeinconnectionwiththeReorganization,FMR
believedthatsuchcostswouldbeminimalandwouldbecounterbalancedby
thereductioninthetotaloperatingexpensesthatMoneyMarketPortfolio
shareholderswouldpayasholdersofCapitalReservesClassShares.
TheBoardsalsoconsideredthatformershareholdersofMoneyMarket
PortfoliowillreceivethenumberofCapitalReservesClassSharesequalto
thenumberoftheirsharesofMoneyMarketPortfolio.Inaddition,the
BoardsconsideredthattheFundsexpectedtoreceiveanopinionofcounsel
thattheReorganizationwouldnotresultinanygainorlossforfederal
incometaxpurposestoMoneyMarketPortfolioorPrimeFundortothe
shareholdersofeitherFund.
parvaluepershare).PrimeFundisoneofthreecurrentfundsofthe
trust.(ForhistoricalinformationregardingPrimeFundandNewburyStreet
Trust,see"FormsofOrganization,"page10).NewburyStreetTrust's
trusteeshaveauthorizedthepublicofferingoftwoclassesofsharesof
PrimeFund,designatedPrimeFundDailyMoneyClassshares,whichare
currentlyoutstanding,andPrimeFundCapitalReservesClassshares,
whichwillbeissuedinitiallytoMoneyMarketPortfolioshareholdersin
connectionwiththeReorganization.AseparatefilingwiththeSECwillbe
madepriortotheClosingDateforthepurposeofregisteringPrimeFund
CapitalReservesClasssharesforsale.EachshareinaClassrepresents
anequalproportionateinterestinPrimeFundwitheachothershareofthat
Class.SharesofPrimeFundentitletheirholderstoonevoteforeach
dollarofnetassetvalueheld(numberofsharesownedtimesthenetasset
valuepershare)andaproportionatefractionalvoteforeachfractional
dollaramountheld,exceptthateachClassofshareshasexclusivevoting
rightsonmatterspertainingtoitsplanofdistribution.Foradditional
informationregardingshareholdervotingrights,see"Formsof
Organization,"page10.EachshareofeachClassofPrimeFundisentitled
toparticipateequallyindividendsandotherdistributionsandinthe
proceedsofanyliquidation,exceptthatdividendsofeachClassmaybe
affecteddifferentlybytheallocationofClassspecificexpenses.
45/101
12/24/2014
outstandingshares.
TheexchangeofMoneyMarketPortfolio'sassetsforCapitalReservesClass
SharesandtheassumptionoftheliabilitiesofMoneyMarketPortfolioby
PrimeFundisintendedtoqualifyforfederalincometaxpurposesasa
taxfreereorganizationundertheCode.WithrespecttotheReorganization,
theparticipatingFundshavereceivedanopinionfromKirkpatrick&
LockhartLLP,counseltoMoneyMarketPortfolioandPrimeFund,
substantiallytotheeffectthat:
(i)TheacquisitionbyPrimeFundofalloftheassetsofMoneyMarket
PortfoliosolelyinexchangeforCapitalReservesClassSharesandthe
assumptionbyPrimeFundofMoneyMarketPortfolio'sliabilities,followed
bythedistributionbyMoneyMarketPortfolioofCapitalReservesClass
SharestotheshareholdersofMoneyMarketPortfoliopursuanttothe
liquidationofMoneyMarketPortfolioandconstructivelyinexchangefor
theirMoneyMarketPortfolioshares,willconstituteareorganization
withinthemeaningofsection368(a)(1)(C)oftheCode,andMoneyMarket
PortfolioandPrimeFundwilleachbe"apartytoareorganization"within
themeaningofsection368(b)oftheCode;
(ii)NogainorlosswillberecognizedbyMoneyMarketPortfolioupon
thetransferofallofitsassetstoPrimeFundinexchangesolelyfor
CapitalReservesClassSharesandPrimeFund'sassumptionofMoneyMarket
Portfolio'sliabilities,followedbyMoneyMarketPortfolio'ssubsequent
distributionofthosesharestoitsshareholdersinliquidationofMoney
MarketPortfolio;
(iii)NogainorlosswillberecognizedbyPrimeFunduponthereceiptof
theassetsofMoneyMarketPortfolioinexchangesolelyforCapital
ReservesClassSharesanditsassumptionofMoneyMarketPortfolio's
liabilities;
(iv)TheshareholdersofMoneyMarketPortfoliowillrecognizenogainor
lossupontheexchangeoftheirMoneyMarketPortfoliosharessolelyfor
CapitalReservesClassShares;
(v)ThebasisofMoneyMarketPortfolio'sassetsinthehandsofPrime
FundwillbethesameasthebasisofthoseassetsinthehandsofMoney
MarketPortfolioimmediatelypriortotheReorganization,andtheholding
periodofthoseassetsinthehandsofPrimeFundwillincludetheholding
periodofthoseassetsinthehandsofMoneyMarketPortfolio;
(vi)ThebasisofMoneyMarketPortfolioshareholdersinCapitalReserves
ClassShareswillbethesameastheirbasisinMoneyMarketPortfolio
sharestobesurrenderedinexchangetherefor;and
receivedbytheMoneyMarketPortfolioshareholderswillincludetheperiod
duringwhichtheMoneyMarketPortfoliosharestobesurrenderedin
exchangethereforwereheld,providedsuchMoneyMarketPortfolioshares
wereheldascapitalassetsbythoseshareholdersonthedateofthe
Reorganization.
ShareholdersofMoneyMarketPortfolioshouldconsulttheirtaxadvisers
regardingtheeffect,ifany,oftheproposedReorganizationinlightof
theirindividualcircumstances.Becausetheforegoingdiscussionrelates
onlytothefederalincometaxconsequencesoftheReorganization,Money
MarketPortfolioshareholdersalsoshouldconsulttheirtaxadvisersasto
stateandlocaltaxconsequences,ifany,oftheReorganization.
CAPITALIZATION
ThefollowingtableshowsthecapitalizationofMoneyMarketPortfolioand
PrimeFund(thenDailyMoneyFund:MoneyMarketPortfolio)asofJanuary
31,1997(unaudited)andonaproformacombinedbasis(unaudited)asof
thatdategivingeffecttotheReorganization.
MONEYMARKETPORTFOLIO$1,482,122,415$1.001,482,132,801
PRIMEFUND
PROFORMACOMBINED
FUND
CapitalReservesClass$1,482,122,415$1.001,482,132,801
CONCLUSION
46/101
12/24/2014
ofMoneyMarketPortfolioandPrimeFundwouldnotbedilutedasaresult
oftheReorganization.IntheeventthattheReorganizationisnot
consummated,MoneyMarketPortfoliowillcontinuetoengageinbusinessas
afundofaregisteredinvestmentcompanyandtheBoardofDailyMoneyFund
willconsiderotherproposalsforthereorganizationorliquidationofthe
Fund.
ADDITIONALINFORMATIONABOUTPRIMEFUND
PrimeFundcurrentlypaysFMRamonthlymanagementfeeatanannualrateof
0.25%ofitsaveragenetassets.Thismanagementfeeratewasapprovedby
shareholdersonMay9,1997,andwentintoeffectonMay31,1997.Also,
effectiveMay31,1997,underanewDistributionandServicePlanadopted
pursuanttoRule12b1underthe1940Act,PrimeFundDailyMoneyClass
beganpayingFDCadistributionfeeof0.25%tocovermostoftheClass's
distributionrelatedcosts;inconnectionwiththischange,PrimeFund's
managementfeewasreducedfrom0.50%to0.25%.
TheProspectusforPrimeFundDailyMoneyClass,datedMay30,1997,is
enclosedwiththisProxyStatementandisincorporatedhereinbyreference.
TheProspectuscontainsadditionalinformationaboutPrimeFundincluding
itsinvestmentobjectiveandpolicies,investmentadviser,advisoryfees
andexpenses,andorganization.Thefinancialhighlightstablethat
followsisforPrimeFundDailyMoneyClass.PrimeFundCapital
ReservesClassisexpectedtocommenceoperationsonoraboutOctober31,
1997.
PRIMEFUND:DAILYMONEYCLASS(FORMERLYDAILYMONEYFUND:MONEYMARKET
PORTFOLIO)
Ratios
Yearsended1997E1996A1996199519941993199219911990198919881987
July31
Netasset$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
value,
beginningof
period
Incomefrom.024.012.050.050.029.028.041.067.080.085.066.057
Investment
Operations
Netinterest
income
Less(.024)(.012)(.050)(.050)(.029)(.028)(.041)(.067)(.080)(.085)(.066)(.057)
Distributions
Fromnet
interest
income
Netasset$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
value,end
ofperiod
TotalreturnB2.43%1.22%5.13%5.16%2.98%2.82%4.21%6.90%8.34%8.81%6.81%5.87%
Netassets,$2,512$2,663$2,581$2,139$1,525$1,451$1,531$1,714$1,350$894$561$441
end
ofperiod
(Inmillions)
Ratioof.65%C,.65%C,.65%C.65%C.65%C.61%.59%.60%.61%.64%C.66%.62%
expensesDD
toaverage
netassets
Ratioofnet4.86%4.85%5.00%5.11%2.96%2.76%4.19%6.61%7.99%8.56%6.57%5.78%
interestDD
incometo
average
netassets
BTOTALRETURNSFORPERIODSOFLESSTHANONEYEARARENOTANNUALIZEDAND
PERIODSSHOWN.
BEENHIGHER.
DANNUALIZED
ESIXMONTHSENDEDAPRIL30,1997(UNAUDITED)
MISCELLANEOUS
EXPERTS.TheauditedfinancialstatementsofMoneyMarketPortfolio,
47/101
12/24/2014
incorporatedbyreferenceintotheStatementofAdditionalInformation,
havebeenauditedbyCoopers&LybrandL.L.P.,independentaccountants,
whosereportthereonisincludedintheAnnualReporttoShareholdersfor
thefiscalyearendedJuly31,1996.Theauditedfinancialstatementsof
PrimeFund,incorporatedbyreferenceintotheStatementofAdditional
ShareholdersforthefiscalyearendedOctober31,1996.Thefinancial
statementsauditedbyCoopers&LybrandL.L.P.havebeenincorporatedby
referenceinrelianceontheirreportsgivenontheirauthorityasexperts
inauditingandaccounting.UnauditedfinancialstatementsforMoney
MarketPortfolioforthesixmonthperiodendedJanuary31,1997,and
unauditedfinancialstatementsforPrimeFundforthesixmonthperiod
endedApril30,1997,arealsoincorporatedbyreferenceintotheStatement
ofAdditionalInformation.
material,andotherinformationwiththeSEC.Suchreports,proxymaterial,
andotherinformationcanbeinspectedandcopiedatthePublicReference
FacilitiesmaintainedbytheSECat450FifthStreet,N.W.,WashingtonD.C.
20549,andattheNortheastRegionalOfficeoftheSEC,7WorldTrade
Center,Suite1300,NewYork,NewYork10048.Copiesofsuchmaterialalso
canbeobtainedfromthePublicReferenceBranch,OfficeofConsumer
AffairsandInformationServices,SecuritiesandExchangeCommission,
WashingtonD.C.20549,atprescribedrates.
Exhibit1
FORMOF
businesstrust,onbehalfofCapitalReserves:MoneyMarketPortfolio
(MoneyMarketPortfolio),aseriesofDailyMoneyFund,andNewburyStreet
Trust,aDelawarebusinesstrust,onbehalfofPrimeFund(PrimeFund),a
seriesofNewburyStreetTrust.DailyMoneyFundandNewburyStreetTrust
maybereferredtohereincollectivelyasthe"Trusts"oreachindividually
asa"Trust."PrimeFundandMoneyMarketPortfoliomaybereferredto
hereincollectivelyasthe"Funds"oreachindividuallyasa"Fund."
comprise:(a)thetransferofalloftheassetsofMoneyMarketPortfolio
toPrimeFundsolelyinexchangeforCapitalReservesClasssharesof
beneficialinterestinPrimeFund(theCapitalReservesClassShares)and
theassumptionbyPrimeFundofMoneyMarketPortfolio'sliabilities;and
(b)theconstructivedistributionofsuchsharesbyMoneyMarketPortfolio
PRORATAtoitsshareholdersincompleteliquidationandterminationof
MoneyMarketPortfolioinexchangeforallofMoneyMarketPortfolio's
outstandingshares.Theforegoingtransactionsarereferredtohereinas
the"Reorganization."
1.REPRESENTATIONSANDWARRANTIESOFMONEYMARKETPORTFOLIO.MoneyMarket
PortfoliorepresentsandwarrantstoandagreeswithPrimeFundthat:
(a)MoneyMarketPortfolioisaseriesofDailyMoneyFund,abusiness
trustdulyorganized,validlyexisting,andingoodstandingunderthelaws
oftheStateofDelaware,andhasthepowertoownallofitsproperties
andassetsandtocarryoutitsobligationsunderthisAgreement.Ithas
allnecessaryfederal,state,andlocalauthorizationstocarryonits
businessasnowbeingconductedandtocarryoutthisAgreement;
(assupplementedJanuary2,1997),previouslyfurnishedtoPrimeFunddid
notanddonotcontainanyuntruestatementofamaterialfactoromitto
thestatementsthereinnotmisleading;
pendingor,totheknowledgeofMoneyMarketPortfolio,threatenedagainst
MoneyMarketPortfoliowhichassertliabilityonthepartofMoneyMarket
Portfolio.MoneyMarketPortfolioknowsofnofactswhichmightformthe
basisfortheinstitutionofsuchproceedings;
(e)MoneyMarketPortfolioisnotin,andtheexecution,delivery,and
performanceofthisAgreementwillnotresultin,violationofany
48/101
12/24/2014
provisionofitsTrustInstrumentorBylaws,or,totheknowledgeofMoney
MarketPortfolio,ofanyagreement,indenture,instrument,contract,lease,
orotherundertakingtowhichMoneyMarketPortfolioisapartyorbywhich
MoneyMarketPortfolioisboundorresultintheaccelerationofany
obligationortheimpositionofanypenaltyunderanyagreement,judgment
ordecreetowhichMoneyMarketPortfolioisapartyorisbound;
ScheduleofInvestments(includingmarketvalues)ofMoneyMarketPortfolio
atJuly31,1996,havebeenauditedbyCoopers&LybrandL.L.P.,
independentaccountants,andhavebeenfurnishedtoPrimeFundtogether
(includingmarketvalues)forthesixmonthperiodendedJanuary31,1997.
(g)MoneyMarketPortfoliohasnoknownliabilitiesofamaterialnature,
statementofassetsandliabilitiesasofJuly31,1996,andthoseincurred
intheordinarycourseofMoneyMarketPortfolio'sbusinessasan
investmentcompanysinceJuly31,1996;
andtheproxystatementofMoneyMarketPortfolioincludedtherein(Proxy
Statement),ontheeffectivedateoftheRegistrationStatementandinsofar
astheyrelatetoMoneyMarketPortfolio(i)complyinallmaterial
respectswiththeprovisionsoftheSecuritiesActof1933,asamended(the
1933Act),theSecuritiesExchangeActof1934,asamended(the1934Act),
andthe1940Act,andtherulesandregulationsthereunder,and(ii)donot
containanyuntruestatementofamaterialfactoromittostateamaterial
factrequiredtobestatedthereinornecessarytomakethestatements
thereinnotmisleading;andatthetimeoftheshareholders'meeting
referredtoinSection7andontheClosingDate,theprospectuscontained
intheRegistrationStatementofwhichtheProxyStatementisapart(the
Prospectus),asamendedorsupplemented,insofarasitrelatestoMoney
MarketPortfolio,doesnotcontainanyuntruestatementofamaterialfact
oromittostateamaterialfactrequiredtobestatedthereinornecessary
tomakethestatementsthereinnotmisleading;
(i)AllmaterialcontractsandcommitmentsofMoneyMarketPortfolio(other
thanthisAgreement)willbeterminatedwithoutliabilitytoMoneyMarket
PortfoliopriortotheClosingDate(otherthanthosemadeinconnection
withredemptionsofsharesandthepurchaseandsaleofportfolio
securitiesmadeintheordinarycourseofbusiness);
governmentalauthorityisrequiredfortheconsummationbyMoneyMarket
PortfolioofthetransactionscontemplatedbythisAgreement,exceptsuch
ashavebeenobtainedunderthe1933Act,the1934Act,the1940Act,and
statesecuritiesorblueskylaws(whichtermasusedhereinshallinclude
theDistrictofColumbiaandPuertoRico);
(k)MoneyMarketPortfoliohasfiledorwillfileallfederalandstatetax
returnswhich,totheknowledgeofMoneyMarketPortfolio'sofficers,are
requiredtobefiledbyMoneyMarketPortfolioandhaspaidorwillpayall
federalandstatetaxesshowntobedueonsaidreturnsorprovisionshall
havebeenmadeforthepaymentthereof,and,tothebestofMoneyMarket
Portfolio'sknowledge,nosuchreturniscurrentlyunderauditandno
assessmenthasbeenassertedwithrespecttosuchreturns;
(l)MoneyMarketPortfoliohasmettherequirementsofSubchapterMofthe
Codeforqualificationandtreatmentasaregulatedinvestmentcompanyfor
allpriortaxableyearsandintendstomeetsuchrequirementsforits
currenttaxableyearendingontheClosingDate(asdefinedinSection6);
(m)AlloftheissuedandoutstandingsharesofMoneyMarketPortfolio
are,andattheClosingDatewillbe,dulyandvalidlyissuedand
securitieslaws.AlloftheissuedandoutstandingsharesofMoneyMarket
Portfoliowill,attheClosingDate,beheldbythepersonsandinthe
amountssetforthinthelistofshareholderssubmittedtoPrimeFundin
accordancewiththisAgreement;
ClosingDate,MoneyMarketPortfoliowillhavethefullright,power,and
authoritytosell,assign,transfer,anddeliveritsportfoliosecurities
andanyotherassetsofMoneyMarketPortfoliotobetransferredtoPrime
FundpursuanttothisAgreement.AttheClosingDate,subjectonlytothe
deliveryofMoneyMarketPortfolio'sportfoliosecuritiesandanysuch
otherassetsascontemplatedbythisAgreement,PrimeFundwillacquire
MoneyMarketPortfolio'sportfoliosecuritiesandanysuchotherassets
subjecttonoencumbrances,liens,orsecurityinterests(exceptforthose
thatmayariseintheordinarycourseandaredisclosedtoPrimeFund)and
49/101
12/24/2014
withoutanyrestrictionsuponthetransferthereof;and
actiononthepartofMoneyMarketPortfolio,andthisAgreement
constitutesavalidandbindingobligationofMoneyMarketPortfolio
enforceableinaccordancewithitsterms,subjecttoshareholderapproval.
2.REPRESENTATIONSANDWARRANTIESOFPRIMEFUND.PrimeFundrepresents
andwarrantstoandagreeswithMoneyMarketPortfoliothat:
(a)PrimeFundisaseriesofNewburyStreetTrust,abusinesstrustduly
organized,validlyexisting,andingoodstandingunderthelawsofthe
StateofDelaware,andhasthepowertoownallofitspropertiesand
andeffect;
(c)TheProspectusandtheStatementofAdditionalInformationofPrime
Fund,bothdatedMay30,1997,previouslyfurnishedtoMoneyMarket
Portfoliodidnotanddonotcontainanyuntruestatementofamaterial
necessarytomakethestatementsthereinnotmisleading;
pendingor,totheknowledgeofPrimeFund,threatenedagainstPrimeFund
whichassertliabilityonthepartofPrimeFund.PrimeFundknowsofno
factswhichmightformthebasisfortheinstitutionofsuchproceedings;
(e)PrimeFundisnotin,andtheexecution,delivery,andperformanceof
thisAgreementwillnotresultin,violationofanyprovisionofitsTrust
InstrumentorBylaws,or,totheknowledgeofPrimeFund,ofany
agreement,indenture,instrument,contract,lease,orotherundertakingto
whichPrimeFundisapartyorbywhichPrimeFundisboundorresultin
theaccelerationofanyobligationortheimpositionofanypenaltyunder
anyagreement,judgment,ordecreetowhichPrimeFundisapartyoris
bound;
ScheduleofInvestments(includingmarketvalues)ofPrimeFundatOctober
31,1996,havebeenauditedbyCoopers&LybrandL.L.P.,independent
accountants,andhavebeenfurnishedtoMoneyMarketPortfoliotogether
(includingmarketvalues)forthesixmonthperiodendedApril30,1997.
(g)PrimeFundhasnoknownliabilitiesofamaterialnature,contingent
orotherwise,otherthanthoseshownasbelongingtoitonitsstatementof
assetsandliabilitiesasofOctober31,1996andthoseincurredinthe
ordinarycourseofPrimeFund'sbusinessasaninvestmentcompanysince
October31,1996;
governmentalauthorityisrequiredfortheconsummationbyPrimeFundof
thetransactionscontemplatedbythisAgreement,exceptsuchashavebeen
obtainedunderthe1933Act,the1934Act,the1940Act,andstate
(i)PrimeFundhasfiledorwillfileallfederalandstatetaxreturns
which,totheknowledgeofPrimeFund'sofficers,arerequiredtobefiled
byPrimeFundandhaspaidorwillpayallfederalandstatetaxesshownto
bedueonsaidreturnsorprovisionshallhavebeenmadeforthepayment
thereof,and,tothebestofPrimeFund'sknowledge,nosuchreturnis
currentlyunderauditandnoassessmenthasbeenassertedwithrespectto
suchreturns;
(j)PrimeFundhasmettherequirementsofSubchapterMoftheCodefor
qualificationandtreatmentasaregulatedinvestmentcompanyforallprior
taxableyearsandintendstomeetsuchrequirementsforitscurrenttaxable
yearendingonOctober31,1997;
MoneyMarketPortfoliowillhavebeendulyauthorizedand,whenissuedand
deliveredpursuanttothisAgreement,willbelegallyandvalidlyissued
andwillbefullypaidandnonassessable(exceptasdisclosedinPrime
Fund'sStatementofAdditionalInformation)byPrimeFund,andno
shareholderofPrimeFundwillhaveanypreemptiverightofsubscriptionor
purchaseinrespectthereof;
actiononthepartofPrimeFund,andthisAgreementconstitutesavalid
andbindingobligationofPrimeFundenforceableinaccordancewithits
terms,subjecttoapprovalbytheshareholdersofMoneyMarketPortfolio;
dateoftheRegistrationStatementandinsofarastheyrelatetoPrime
50/101
12/24/2014
theProspectus,asamendedorsupplemented,insofarasitrelatestoPrime
Fund,willnotcontainanyuntruestatementofamaterialfactoromitto
thestatementsthereinnotmisleading;
laws;and
PrimeFundhavebeenofferedforsaleandsoldinconformitywiththe
3.REORGANIZATION.
(a)SubjecttotherequisiteapprovaloftheshareholdersofMoneyMarket
Portfolioandtotheothertermsandconditionscontainedherein,Money
MarketPortfolioagreestoassign,sell,convey,transfer,anddeliverto
PrimeFundasoftheClosingDatealloftheassetsofMoneyMarket
PortfolioofeverykindandnatureexistingontheClosingDate.Prime
Fundagreesinexchangetherefor:(i)toassumeallofMoneyMarket
Portfolio'sliabilitiesexistingonoraftertheClosingDate,whetheror
notdeterminableontheClosingDate,and(ii)toissueanddeliverto
MoneyMarketPortfoliothenumberoffullandfractionalCapitalReserves
ClassSharesequaltothenumberoffullandfractionalsharesofMoney
MarketPortfoliothenoutstanding.
(b)TheassetsofMoneyMarketPortfoliotobeacquiredbyPrimeFund
shallinclude,withoutlimitation,allcash,cashequivalents,securities,
receivables(includinginterestordividendsreceivables),claims,choses
inaction,andotherpropertyownedbyMoneyMarketPortfolio,andany
deferredorprepaidexpensesshownasanassetonthebooksofMoneyMarket
PortfolioontheClosingDate.MoneyMarketPortfoliowillpayorcauseto
bepaidtoPrimeFundanydividendorinterestpaymentsreceivedbyiton
oraftertheClosingDatewithrespecttotheassetstransferredtoPrime
Fundhereunder,andPrimeFundwillretainanydividendorinterest
paymentsreceivedbyitaftertheValuationTimewithrespecttotheassets
transferredhereunderwithoutregardtothepaymentdatethereof.
(c)TheliabilitiesofMoneyMarketPortfoliotobeassumedbyPrimeFund
shallinclude(exceptasotherwiseprovidedforherein)allofMoneyMarket
Portfolio'sliabilities,debts,obligations,andduties,ofwhateverkind
ornature,whetherabsolute,accrued,contingent,orotherwise,whetheror
notarisingintheordinarycourseofbusiness,whetherornotdeterminable
ontheClosingDate,andwhetherornotspecificallyreferredtointhis
Agreement.Notwithstandingtheforegoing,MoneyMarketPortfolioagreesto
useitsbesteffortstodischargeallofitsknownliabilitiespriortothe
ClosingDate,otherthanliabilitiesincurredintheordinarycourseof
business.
convenientlypracticable(theLiquidationDate),MoneyMarketPortfolio
willconstructivelydistributePRORATAtoitsshareholdersofrecord,
determinedasoftheValuationTimeontheClosingDate,theCapital
ReservesClassSharesinexchangeforsuchshareholders'sharesof
beneficialinterestinMoneyMarketPortfolioandMoneyMarketPortfolio
willbeliquidatedinaccordancewithDailyMoneyFund'sTrustInstrument.
SuchdistributionshallbeaccomplishedbytheFunds'transferagent
openingaccountsonPrimeFund'ssharetransferbooksinthenamesofthe
MoneyMarketPortfolioshareholdersandtransferringtheCapitalReserves
ClassSharesthereto.EachMoneyMarketPortfolioshareholder'saccount
shallbecreditedwiththerespectivePRORATAnumberoffulland
fractional(roundedtothethirddecimalplace)CapitalReservesClass
Sharesduethatshareholder.AlloutstandingMoneyMarketPortfolio
shares,includinganyrepresentedbycertificates,shallsimultaneouslybe
canceledonMoneyMarketPortfolio'ssharetransferrecords.PrimeFund
shallnotissuecertificatesrepresentingtheCapitalReservesClassShares
inconnectionwiththeReorganization.
(e)AnyreportingresponsibilityofMoneyMarketPortfolioisandshall
remainitsresponsibilityuptoandincludingthedateonwhichitis
terminated.
SharesinanameotherthanthatoftheregisteredholderonMoneyMarket
Portfolio'sbooksoftheMoneyMarketPortfoliosharesconstructively
exchangedfortheCapitalReservesClassSharesshallbepaidbytheperson
towhomsuchCapitalReservesClassSharesaretobeissued,asacondition
ofsuchtransfer.
4.VALUATION.
(b)OntheClosingDate,PrimeFundwilldelivertoMoneyMarketPortfolio
thenumberoffullandfractionalCapitalReservesClassSharesequalto
thenumberoffullandfractionalsharesofMoneyMarketPortfoliothen
51/101
12/24/2014
outstanding.
toMoneyMarketPortfolio,thevalueoftheassetsofMoneyMarket
Portfoliotransferredhereunder,andthevalueoftheliabilitiesofMoney
MarketPortfoliotobeassumedhereundershallineachcasebedetermined
asoftheValuationTime.
inthemannersetforthinthethencurrentPrimeFundCapitalReserves
ClassProspectusandStatementofAdditionalInformation,andthevalueof
theassetsandliabilitiesofMoneyMarketPortfolioshallbecomputedin
themannersetforthinthethencurrentMoneyMarketPortfolioProspectus
andStatementofAdditionalInformation.
MoneyMarketPortfolioandPrimeFund.
5.FEES;EXPENSES.
(a)MoneyMarketPortfolioshallberesponsibleforallexpenses,feesand
othercharges,subjecttoFMR'svoluntaryexpenselimitation,if
applicable.AnymergerrelatedexpenseswhichmaybeattributabletoPrime
FundwillbebornebyPrimeFund,subjecttoFMR'svoluntaryexpense
limitation,ifapplicable.
(b)EachofPrimeFundandMoneyMarketPortfoliorepresentsthatthereis
nopersonwhohasdealtwithitwhobyreasonofsuchdealingsisentitled
toanybroker'sorfinder'sorothersimilarfeeorcommissionarisingout
ofthetransactionscontemplatedbythisAgreement.
6.CLOSINGDATE.
othertime,date,andplaceagreedtobyMoneyMarketPortfolioandPrime
Fund(theClosingDate).
assetvalueofMoneyMarketPortfolioandthenetassetvaluepershareof
PrimeFundisimpracticable,theValuationTimeandtheClosingDateshall
bepostponeduntilthefirstbusinessdayafterthedaywhensuchtrading
shallhavebeenfullyresumedandsuchreportingshallhavebeenrestored,
orsuchotherdateasthepartiesmayagree.
7.SHAREHOLDERMEETINGANDTERMINATIONOFMONEYMARKETPORTFOLIO.
(a)MoneyMarketPortfolioagreestocallameetingofitsshareholders
aftertheeffectivedateoftheRegistrationStatement,toconsider
transferringitsassetstoPrimeFundashereinprovided,adoptingthis
Agreement,andauthorizingtheliquidationofMoneyMarketPortfolio.
(b)MoneyMarketPortfolioagreesthatassoonasreasonablypracticable
afterdistributionoftheCapitalReservesClassShares,MoneyMarket
PortfolioshallbeterminatedasaseriesofDailyMoneyFundpursuantto
itsTrustInstrument,anyfurtheractionsshallbetakeninconnection
therewithasrequiredbyapplicablelaw,andonandaftertheClosingDate
MoneyMarketPortfolioshallnotconductanybusinessexceptinconnection
8.CONDITIONSTOOBLIGATIONSOFPRIMEFUND.TheobligationsofPrimeFund
hereundershallbesubjecttothefollowingconditions:
(a)ThatMoneyMarketPortfoliofurnishestoPrimeFundastatement,dated
asoftheClosingDate,signedbyanofficerofDailyMoneyFund,
representationsandwarrantiesofMoneyMarketPortfoliomadeinthis
AgreementaretrueandcorrectinallmaterialrespectsandthatMoney
MarketPortfoliohascompliedwithalltheagreementsandsatisfiedallthe
conditionsonitsparttobeperformedorsatisfiedatorpriortosuch
dates;
(b)ThatMoneyMarketPortfoliofurnishesPrimeFundwithcopiesofthe
resolutions,certifiedbyanofficerofDailyMoneyFund,evidencingthe
adoptionofthisAgreementandtheapprovalofthetransactions
contemplatedhereinbytherequisitevoteoftheholdersoftheoutstanding
sharesofbeneficialinterestofMoneyMarketPortfolio;
(c)That,onorpriortotheClosingDate,MoneyMarketPortfoliowill
previoussuchdividendsordistributionsattributabletoitscurrent
taxableyear,shallhavetheeffectofdistributingtotheshareholdersof
MoneyMarketPortfoliosubstantiallyallofMoneyMarketPortfolio's
investmentcompanytaxableincomeandallofitsnetrealizedcapitalgain,
ifany,asoftheClosingDate;
(d)ThatMoneyMarketPortfolioshalldelivertoPrimeFundattheClosing
astatementofitsassetsandliabilities,togetherwithalistofits
portfoliosecuritiesshowingeachsuchsecurity'sadjustedtaxbasisand
holdingperiodbylot,withvaluesdeterminedasprovidedinSection4of
thisAgreement,allasoftheValuationTime,certifiedonMoneyMarket
Portfolio'sbehalfbyitsTreasurerorAssistantTreasurer;
52/101
12/24/2014
(e)ThatMoneyMarketPortfolio'scustodianshalldelivertoPrimeFunda
certificateidentifyingtheassetsofMoneyMarketPortfolioheldbysuch
custodianasoftheValuationTimeontheClosingDateandstatingthatas
oftheValuationTime:(i)theassetsheldbythecustodianwillbe
transferredtoPrimeFund;(ii)MoneyMarketPortfolio'sassetshavebeen
dulyendorsedinproperformfortransferinsuchconditionasto
constitutegooddeliverythereof;and(iii)tothebestofthecustodian's
knowledge,allnecessarytaxesinconjunctionwiththedeliveryofthe
assets,includingallapplicablefederalandstatestocktransferstamps,
ifany,havebeenpaidorprovisionforpaymenthasbeenmade;
(f)ThatMoneyMarketPortfolio'stransferagentshalldelivertoPrime
FundattheClosingacertificatesettingforththenumberofsharesof
MoneyMarketPortfoliooutstandingasoftheValuationTimeandthename
andaddressofeachholderofrecordofanysuchsharesandthenumberof
sharesheldofrecordbyeachsuchshareholder;
(g)ThatMoneyMarketPortfoliocallsameetingofitsshareholderstobe
heldaftertheeffectivedateoftheRegistrationStatement,toconsider
transferringitsassetstoPrimeFundashereinprovided,adoptingthis
Agreement,andauthorizingtheliquidationandterminationofMoneyMarket
Portfolio;
(h)ThatMoneyMarketPortfoliodeliverstoPrimeFundacertificateofan
officerofDailyMoneyFund,datedasoftheClosingDate,thattherehas
beennomaterialadversechangeinMoneyMarketPortfolio'sfinancial
positionsinceJuly31,1996,otherthanchangesinthemarketvalueofits
portfoliosecurities,orchangesduetonetredemptionsofitsshares,
dividendspaid,orlossesfromoperations;and
ofMoneyMarketPortfolioshallhavebeenofferedforsaleandsoldin
conformitywithallapplicablestatesecuritieslawsand,totheextent
thatanyauditoftherecordsofMoneyMarketPortfoliooritstransfer
agentbyPrimeFundoritsagentsshallhaverevealedotherwise,Money
MarketPortfolioshallhavetakenallactionsthatintheopinionofPrime
FundarenecessarytoremedyanypriorfailureonthepartofMoneyMarket
Portfoliotohaveofferedforsaleandsoldsuchsharesinconformitywith
suchlaws.
9.CONDITIONSTOOBLIGATIONSOFMONEYMARKETPORTFOLIO.
(a)ThatPrimeFundshallhaveexecutedanddeliveredtoMoneyMarket
PortfolioanAssumptionofLiabilities,certifiedbyanofficerofNewbury
StreetTrust,datedasoftheClosingDatepursuanttowhichPrimeFund
willassumealloftheliabilitiesofMoneyMarketPortfolioexistingat
theValuationTimeinconnectionwiththetransactionscontemplatedbythis
Agreement;
(b)ThatPrimeFundfurnishestoMoneyMarketPortfolioastatement,dated
asoftheClosingDate,signedbyanofficerofNewburyStreetTrust,
representationsandwarrantiesofPrimeFundmadeinthisAgreementare
trueandcorrectinallmaterialrespects,andPrimeFundhascompliedwith
alltheagreementsandsatisfiedalltheconditionsonitsparttobe
performedorsatisfiedatorpriortosuchdates;and
(c)ThatMoneyMarketPortfolioshallhavereceivedanopinionof
Kirkpatrick&LockhartLLP,counseltoMoneyMarketPortfolioandPrime
Fund,totheeffectthattheCapitalReservesClassSharesareduly
authorizedandupondeliverytoMoneyMarketPortfolioasprovidedinthis
Agreementwillbevalidlyissuedandwillbefullypaidandnonassessable
byPrimeFund(exceptasdisclosedinPrimeFund'sStatementofAdditional
Information)andnoshareholderofPrimeFundhasanypreemptiverightof
subscriptionorpurchaseinrespectthereof.
10.CONDITIONSTOOBLIGATIONSOFPRIMEFUNDANDMONEYMARKETPORTFOLIO.
holdersoftheoutstandingsharesofbeneficialinterestofMoneyMarket
Portfolio;
deemednecessarybyPrimeFundorMoneyMarketPortfoliotopermit
consummation,inallmaterialrespects,ofthetransactionscontemplated
herebyshallhavebeenobtained,exceptwherefailuretoobtainanysuch
consent,order,orpermitwouldnotinvolveariskofamaterialadverse
effectontheassetsorpropertiesofPrimeFundorMoneyMarketPortfolio,
providedthateitherpartyheretomayforitselfwaiveanyofsuch
conditions;
institutedor,totheknowledgeofPrimeFundandMoneyMarketPortfolio,
threatenedbytheCommission;and
53/101
12/24/2014
(f)ThatPrimeFundandMoneyMarketPortfolioshallhavereceivedan
opinionofKirkpatrick&LockhartLLPsatisfactorytoPrimeFundandMoney
MarketPortfoliothatforfederalincometaxpurposes:
368(a)(1)(C)oftheCode,andMoneyMarketPortfolioandPrimeFundwill
eachbepartiestotheReorganizationundersection368(b)oftheCode;
(ii)NogainorlosswillberecognizedbyMoneyMarketPortfolioupon
thetransferofallofitsassetstoPrimeFundinexchangesolelyforthe
CapitalReservesClassSharesandtheassumptionofMoneyMarket
Portfolio'sliabilitiesfollowedbythedistributionofthoseCapital
ReservesClassSharestotheshareholdersofMoneyMarketPortfolioin
liquidationofMoneyMarketPortfolio;
(iii)NogainorlosswillberecognizedbyPrimeFundonthereceiptof
MoneyMarketPortfolio'sassetsinexchangesolelyfortheCapitalReserves
ClassSharesandtheassumptionofMoneyMarketPortfolio'sliabilities;
(iv)ThebasisofMoneyMarketPortfolio'sassetsinthehandsofPrime
FundwillbethesameasthebasisofsuchassetsinMoneyMarket
Portfolio'shandsimmediatelypriortotheReorganization;
(v)PrimeFund'sholdingperiodintheassetstobereceivedfromMoney
MarketPortfoliowillincludeMoneyMarketPortfolio'sholdingperiodin
suchassets;
(vi)AMoneyMarketPortfolioshareholderwillrecognizenogainorloss
ontheexchangeofhisorhersharesofbeneficialinterestinMoneyMarket
PortfoliofortheCapitalReservesClassSharesintheReorganization;
(vii)AMoneyMarketPortfolioshareholder'sbasisintheCapital
ReservesClassSharestobereceivedbyhimorherwillbethesameashis
orherbasisintheMoneyMarketPortfoliosharesexchangedtherefor;and
(viii)AMoneyMarketPortfolioshareholder'sholdingperiodforhisor
herCapitalReservesClassShareswillincludetheholdingperiodofMoney
MarketPortfoliosharesexchanged,providedthatthoseMoneyMarket
Portfolioshareswereheldascapitalassetsonthedateofthe
Reorganization.
Notwithstandinganythinghereintothecontrary,eachofMoneyMarket
PortfolioandPrimeFundmaynotwaivetheconditionssetforthinthis
subsection10(f).
11.COVENANTSOFPRIMEFUNDANDMONEYMARKETPORTFOLIO.
(a)PrimeFundandMoneyMarketPortfolioeachcovenantstooperateits
respectivebusinessintheordinarycoursebetweenthedatehereofandthe
ClosingDate,itbeingunderstoodthatsuchordinarycourseofbusiness
willincludethepaymentofcustomarydividendsanddistributions;
(b)MoneyMarketPortfoliocovenantsthatitisnotacquiringtheCapital
ReservesClassSharesforthepurposeofmakinganydistributionotherthan
inaccordancewiththetermsofthisAgreement;
(c)MoneyMarketPortfoliocovenantsthatitwillassistPrimeFundin
obtainingsuchinformationasPrimeFundreasonablyrequestsconcerningthe
beneficialownershipofMoneyMarketPortfolio'sshares;and
(d)MoneyMarketPortfoliocovenantsthatitsliquidationandtermination
willbeeffectedinthemannerprovidedinitsTrustInstrumentin
accordancewithapplicablelawandaftertheClosingDate,MoneyMarket
Portfoliowillnotconductanybusinessexceptinconnectionwithits
liquidationandtermination.
PrimeFundandMoneyMarketPortfoliomayterminatethisAgreementby
mutualagreement.Inaddition,eitherPrimeFundorMoneyMarketPortfolio
mayatitsoptionterminatethisAgreementatorpriortotheClosingDate
because:
or
damagesonthepartofMoneyMarketPortfolioorPrimeFund,ortheir
respectiveTrusteesorofficers.
StateofDelaware.
President,anyVicePresident,orTreasurerofPrimeFundorMoneyMarket
Portfolio;provided,however,thatfollowingtheshareholders'meeting
calledbyMoneyMarketPortfoliopursuanttoSection7ofthisAgreement,
nosuchamendmentmayhavetheeffectofchangingtheprovisionsfor
determiningthenumberofCapitalReservesClassSharestobepaidtoMoney
MarketPortfolioshareholdersunderthisAgreementtothedetrimentofsuch
shareholderswithouttheirfurtherapproval.
54/101
12/24/2014
suchFund.
15.ASSIGNMENT.
ofthisAgreement.
AFUNDOF
DAILYMONEYFUND
18008433001
TotheShareholdersofCapitalReserves:MunicipalMoneyMarketPortfolio:
Meeting)ofCapitalReserves:MunicipalMoneyMarketPortfolio(Municipal
MoneyMarketPortfolio),willbeheldattheofficeofDailyMoneyFund,82
DevonshireStreet,Boston,Massachusetts02109onWednesday,September17,
1997,at11:30a.m.Easterntime.ThepurposeoftheMeetingisto
considerandactuponthefollowingproposal,andtotransactsuchother
businessasmayproperlycomebeforetheMeetingoranyadjournments
thereof.
(1)ToapproveanAgreementandPlanofReorganizationbetweenMunicipal
MoneyMarketPortfolioandTaxExemptFund,afundofNewburyStreetTrust,
providingforthetransferofalloftheassetsofMunicipalMoneyMarket
PortfoliotoTaxExemptFundinexchangesolelyforCapitalReservesClass
sharesofbeneficialinterestofTaxExemptFundandtheassumptionby
TaxExemptFundofMunicipalMoneyMarketPortfolio'sliabilities,followed
bythedistributionofCapitalReservesClasssharesofTaxExemptFundto
shareholdersofMunicipalMoneyMarketPortfolioinliquidationof
MunicipalMoneyMarketPortfolio.
therecorddateforthedeterminationoftheshareholdersofMunicipal
MoneyMarketPortfolioentitledtonoticeof,andtovoteat,suchMeeting
andanyadjournmentsthereof.
July21,1997
YOURVOTEISIMPORTANT
HOLDINGSMAYBE.
55/101
12/24/2014
u/t/d12/28/78
UGMA
AFUNDOF
DAILYMONEYFUND
18008433001
JULY21,1997
toshareholdersofCapitalReserves:MunicipalMoneyMarketPortfolio
(MunicipalMoneyMarketPortfolio),afundofDailyMoneyFund,in
connectionwiththesolicitationofproxiesbyDailyMoneyFund'sBoardof
TrusteesforuseattheSpecialMeetingofShareholdersofMunicipalMoney
MarketPortfolioandatanyadjournmentsthereof(theMeeting).TheMeeting
willbeheldonWednesday,September17,1997at11:30a.m.Easterntimeat
82DevonshireStreet,Boston,Massachusetts02109,theprincipalexecutive
officeofDailyMoneyFund.
toanAgreementandPlanofReorganization(theAgreement),MunicipalMoney
MarketPortfoliowouldtransferallofitsassetstoTaxExemptFund,a
fundofNewburyStreetTrust,inexchangesolelyforCapitalReservesClass
sharesofbeneficialinterestofTaxExemptFund(CapitalReservesClass
Shares)andtheassumptionbyTaxExemptFundofMunicipalMoneyMarket
Portfolio'sliabilities.CapitalReservesClassShareswouldthenbe
distributedtoMunicipalMoneyMarketPortfolioshareholders,sothateach
suchshareholderwouldreceivethenumberoffullandfractionalCapital
ReservesClassSharesequaltothenumberoffullandfractionalsharesof
MunicipalMoneyMarketPortfolioheldbysuchshareholderonOctober30,
1997,orsuchotherdateasthepartiesmayagree(theClosingDate).
MunicipalMoneyMarketPortfoliowilldistributeCapitalReservesClass
Sharestoitsshareholdersinliquidation,asprovidedintheAgreement.
TaxExemptFund,amoneymarketfund,isadiversifiedfundofNewbury
StreetTrust,anopenendmanagementinvestmentcompanyorganizedasa
DelawarebusinesstrustonDecember30,1991.NewburyStreetTrust's
principalexecutiveofficeislocatedat82DevonshireStreet,Boston,
Massachusetts02109(18008433001).TaxExemptFund'sinvestment
objectiveistoprovideindividualandinstitutionalinvestorswithashigh
alevelofcurrentincome,exemptfromfederalincometaxes,asis
consistentwithaportfolioofhighquality,shorttermmunicipal
obligationsselectedonthebasisofliquidityandstabilityofprincipal.
TaxExemptFundinvestsinhighqualitymunicipalmoneymarketsecurities
ofalltypes.TaxExemptFundnormallyinvestssothatatleast80%ofits
incomedistributionsisfreefromfederalincometax.TaxExemptFundis
currentlyauthorizedtoissuetwoclassesofsharesdesignatedTaxExempt
FundDailyMoneyClassshares,whicharecurrentlyoutstanding,and
TaxExemptFundCapitalReservesClassshares,whichwillbeissued
initiallytoMunicipalMoneyMarketPortfolioshareholdersinconnection
withtheReorganization.
forthconciselytheinformationabouttheReorganizationandTaxExempt
Fundthatashareholdershouldknowbeforevotingontheproposed
TaxExemptFundDailyMoneyClass,datedMay30,1997.TheStatementof
AdditionalInformationforTaxExemptFundDailyMoneyClass,datedMay
30,1997,isavailableuponrequest.TheProspectusandtheStatementof
AdditionalInformationforTaxExemptFundDailyMoneyClasshavebeen
filedwiththeSecuritiesandExchangeCommission(theSEC)andare
incorporatedhereinbyreference.AStatementofAdditionalInformation,
datedJuly21,1997,relatingtothisProxyStatementhasbeenfiledwith
theSECandisincorporatedhereinbyreference.AProspectus,dated
November29,1996(assupplementedMarch21,1997),andaStatementof
56/101
12/24/2014
AdditionalInformation,datedNovember29,1996(assupplementedJanuary2,
1997),forMunicipalMoneyMarketPortfoliohavebeenfiledwiththeSEC
andareincorporatedhereinbyreference.Copiesofthesedocuments,as
wellaseachfund'smostrecentannualandsemiannualreports,maybe
obtainedwithoutchargebycontactingFidelityClientServicesat82
DevonshireStreet,Boston,Massachusetts02109orbycalling
18008433001.
TABLEOFCONTENTS
VOTINGINFORMATION
SYNOPSIS
ADDITIONALINFORMATIONABOUTTAXEXEMPTFUND
MISCELLANEOUS
EXHIBIT1.FORMOFAGREEMENTANDPLANOFREORGANIZATIONOFMUNICIPALMONEY
MARKETPORTFOLIO
18008433001
_________________________________
VOTINGINFORMATION
usedattheSpecialMeetingofShareholdersofCapitalReserves:Municipal
MoneyMarketPortfolio(MunicipalMoneyMarketPortfolioorthefund)and
atanyadjournmentsthereof(theMeeting),tobeheldonWednesday,
September17,1997at11:30a.m.Easterntimeat82DevonshireStreet,
Boston,Massachusetts02109,theprincipalexecutiveofficeofthetrust
andFidelityManagement&ResearchCompany(FMR),thefund'sinvestment
adviser.
anticipatedcostofapproximately$14,000.Theexpensesinconnectionwith
preparingthisProxyStatementanditsenclosuresandofallsolicitations
expenseswilleffectivelybebornebyFMR.FMRwillreimbursebrokerage
firmsandothersfortheirreasonableexpensesinforwardingsolicitation
materialtothebeneficialownersofshares.
MunicipalMoneyMarketPortfoliomayalsoarrangetohavevotesrecorded
bytelephone.D.F.King&Co.maybepaidonapercallbasisfor
57/101
12/24/2014
OnApril30,1997,therewere434,346,612sharesofTaxExemptFund
DailyMoneyClass(thenknownasDailyTaxExemptMoneyFundInitial
Class)issuedandoutstanding.
OnApril30,1997,therewere143,712,249sharesofMunicipalMoneyMarket
Portfolioissuedandoutstanding.ShareholdersofrecordofMunicipal
MoneyMarketPortfolioatthecloseofbusinessonJuly21,1997,willbe
entitledtovoteattheMeeting.Eachsuchshareholderwillbeentitledto
onevoteforeachfullshareheldonthatdateandaproportionateshareof
onevoteforeachfractionalshareheldonthatdate.
theaggregatelessthan1%ofthesharesofMunicipalMoneyMarket
PortfolioandTaxExemptFund(thenknownasDailyTaxExemptMoneyFund),
respectively.
ofMunicipalMoneyMarketPortfolio'sorTaxExemptFund'soutstanding
shares:
SHAREHOLDERADDRESSPERCENTAGEOF
OUTSTANDINGFUNDSHARES
MUNICIPALMONEYMARKET
PORTFOLIO
TAXEXEMPTFUNDDAILY
MONEYCLASS
TexasCommerceBank,N.A.Houston,TX9.16%
LNCEquitySalesFortWayne,IN5.86%
sharesofMunicipalMoneyMarketPortfolioorTaxExemptFundonthatdate.
IftheReorganizationbecameeffectiveatApril30,1997,theabove
shareholdersofMunicipalMoneyMarketPortfoliowouldhaveownedofrecord
orbeneficiallythesamepercentagesshownaboveofTaxExemptFund
CapitalReservesClass;theaboveshareholdersofTaxExemptFundDaily
MoneyClasswouldhaveownedofrecordorbeneficiallythesamepercentages
shownaboveofTaxExemptFundDailyMoneyClass;andTexasCommerce
Bank,N.A.wouldhaveownedofrecordorbeneficially6.89%ofTaxExempt
Fundasawhole.
VOTEOFA"MAJORITYOFTHEOUTSTANDINGVOTINGSECURITIES"OFMUNICIPAL
MONEYMARKETPORTFOLIO.UNDERTHEINVESTMENTCOMPANYACTOF1940(THE1940
ACT),THEVOTEOFA"MAJORITYOFTHEOUTSTANDINGVOTINGSECURITIES"MEANS
THEAFFIRMATIVEVOTEOFTHELESSEROF(A)67%ORMOREOFTHEVOTING
SECURITIESPRESENTATTHEMEETINGORREPRESENTEDBYPROXYIFTHEHOLDERSOF
MORETHAN50%OFTHEOUTSTANDINGVOTINGSECURITIESAREPRESENTOR
REPRESENTEDBYPROXYOR(B)MORETHAN50%OFTHEOUTSTANDINGVOTING
SECURITIES.BROKERNONVOTESARENOTCONSIDERED"PRESENT"FORTHISPURPOSE.
SYNOPSIS
SUMMARY
thisProxyStatement,intheAgreement,andintheProspectusesof
MunicipalMoneyMarketPortfolioandTaxExemptFundDailyMoneyClass,
whichareincorporatedhereinbythisreference.Shareholdersshouldread
theentireProxyStatementandtheenclosedProspectusofTaxExemptFund
DailyMoneyClasscarefullyformorecompleteinformationaboutthe
ReorganizationandTaxExemptFund.
TheproposalistomergeMunicipalMoneyMarketPortfoliointoa
newlycreatedclassCapitalReservesClassofTaxExemptFund,alarger
moneymarketfundalsomanagedbyFMR.FMRispresentingsimilarproposals
toalloftheCapitalReservesPortfoliositmanages.MergingMunicipal
58/101
12/24/2014
MoneyMarketPortfoliointoTaxExemptFundCapitalReservesClasswill
helpFMRmanagethefundsmoreefficiently.
TaxExemptFundCapitalReservesClassisdesignedtobesimilarto
MunicipalMoneyMarketPortfolio.Youwillnothavetochangehowyoudo
businesswithFidelityorhavetotakeanyotheraction(otherthanvoting)
tomaintainyourinvestment.
TaxExemptFundhasslightlydifferentinvestmentpoliciesthanMunicipal
MoneyMarketPortfolio.MunicipalMoneyMarketPortfoliomayinvestupto
100%ofitsassetsinsecuritieswhoseinterestisataxpreferenceitem
forpurposesofthefederalalternativeminimumtax,orAMT.TaxExempt
FunddoesnotcurrentlyintendtoinvestinAMTsecurities.AMTsecurities
generallypayhigheryieldsthanmunicipalsecuritiesthatarefully
taxexempt,butincreasethetaxliabilityofsomeinvestors.Not
investinginAMTsecuritieswillnegativelyimpactTaxExemptFund
CapitalReservesClass'syieldapproximately0.03%0.08%peryear
comparedtoMunicipalMoneyMarketPortfolio.Thisimpactshouldbe
offset,however,bythe0.09%expensereductioniftheReorganizationis
approved.
MunicipalMoneyMarketPortfolioandTaxExemptFund(collectivelythe
"Funds"oreachindividuallya"Fund")haveessentiallythesameinvestment
objective.MunicipalMoneyMarketPortfolioseekstoprovideinvestors
withashighalevelofcurrentincome,exemptfromfederalincometaxes,
asisconsistentwithaportfolioofhighquality,shorttermmunicipal
obligationsselectedonthebasisofpreservationofcapitalandliquidity.
TaxExemptFundseekstoprovideindividualandinstitutionalinvestors
EachFundinvestsinhighqualitymunicipalmoneymarketsecuritiesand
normallyinvestssothatatleast80%ofitsincomedistributionsisfree
fromfederalincometax.EachFundmayinvestmorethan25%ofitstotal
assetsintaxfreesecuritiesthatfinancesimilartypesofprojects.
Asnotedabove,theFundshavedifferentpoliciesregardingsecurities
whoseinterestisataxpreferenceitemforpurposesoftheAMT.Municipal
MoneyMarketPortfoliomayinvestupto100%ofitsassetsinmunicipal
securitiessubjecttotheAMT.TaxExemptFunddoesnotcurrentlyintend
topurchasemunicipalsecuritiessubjecttotheAMT.AsofApril30,1997,
approximately72%ofMunicipalMoneyMarketPortfolio'sassetswere
investedinsecuritiessubjecttotheAMT.
EXPENSESTRUCTURE
TaxExemptFundCapitalReservesClasshaslowerexpensesthanMunicipal
MoneyMarketPortfolio.Thus,ifshareholdersapprovetheReorganization,
theywillhavelowercostsontheirinvestments.
MunicipalMoneyMarketPortfoliocurrentlypaysFMRamonthlymanagement
feeatanannualrateof0.50%ofitsaveragenetassets.Also,undera
DistributionandServicePlanadoptedpursuanttoRule12b1underthe1940
Act,theFundpaysitsdistributor,NationalFinancialServicesCorporation
(NFSC),amonthlydistributionfeeatanannualrateof0.35%ofits
averagenetassets.Thus,MunicipalMoneyMarketPortfoliocurrentlypays
totalmanagementanddistributionfeesof0.85%.Inaddition,theFund's
DistributionandServicePlanspecificallyrecognizesthatFMRmaymake
(notfromtheFund'sassets)tocompensatefinancialintermediaries
(includingNFSC)forprovidingdistributionrelatedservicesfortheFund.
TheBoardofTrusteesofDailyMoneyFundhasauthorizedFMRtomakesuch
paymentsofupto0.25%oftheFund'saveragenetassetsthroughoutthe
monthbaseduponthelevelofshareholdersupportanddistributionservices
provided.FMRhasvoluntarilyagreedtoreimburseMunicipalMoneyMarket
Portfoliototheextentthatitstotaloperatingexpenses(excluding
0.99%ofitsaveragenetassets.
IfMunicipalMoneyMarketPortfolioshareholdersapprovethe
Reorganization,theywillreceiveTaxExemptFundCapitalReservesClass
shares,whichwillpaya0.25%managementfeeanda0.50%distributionfee.
Thetotalmanagementanddistributionfeesof0.75%tobepaidby
TaxExemptFundCapitalReservesClasswillbe0.10%lower,asa
percentageofaveragenetassets,thanthetotalmanagementand
distributionfeesof0.85%currentlypaidbyMunicipalMoneyMarket
Portfolio.Inaddition,theDistributionandServicePlanforTaxExempt
FundCapitalReservesClasswillspecificallyrecognizethatFMRmaymake
paymentsfromitsmanagementfeerevenue,pastprofitsorotherresources
(notfromtheClass'sassets)tocompensatefinancialintermediariesfor
providingdistributionrelatedservicestotheClass.FMRhasvoluntarily
agreedtoreimburseTaxExemptFundCapitalReservesClasstotheextent
assets0.09%lowerthanMunicipalMoneyMarketPortfolio's0.99%
voluntaryexpenselimitation.AlthoughFMRmayterminatethevoluntary
59/101
12/24/2014
expenselimitationwithrespecttoTaxExemptFundCapitalReservesClass
atanytimewithoutpriornoticetoshareholders,FMRhasnocurrent
intentionofdoingso.
Insum,theReorganizationwouldgiveshareholdersofMunicipalMoney
MarketPortfoliotheopportunitytoparticipateinalargermoneymarket
fundwithessentiallythesameinvestmentobjective,0.10%lowertotal
managementanddistributionfees,anda0.09%lowertotaloperatingexpense
ratio,afterreimbursement.
TheBoardofTrusteesbelievesthattheReorganizationwouldbenefit
MunicipalMoneyMarketPortfolio'sshareholdersandrecommendsthat
shareholdersvoteinfavoroftheReorganization.
ShareholdersofMunicipalMoneyMarketPortfoliowillbeaskedatthe
MeetingtovoteuponandapprovetheReorganizationandtheAgreement,
whichprovidesfortheacquisitionbyTaxExemptFundofalloftheassets
ofMunicipalMoneyMarketPortfolioinexchangesolelyforCapitalReserves
ClasssharesofTaxExemptFund(CapitalReservesClassShares)andthe
assumptionbyTaxExemptFundoftheliabilitiesofMunicipalMoneyMarket
Portfolio.MunicipalMoneyMarketPortfoliowillthendistributethe
CapitalReservesClassSharestoitsshareholders,sothateachshareholder
willreceivethenumberoffullandfractionalCapitalReservesClass
SharesequaltothenumberoffullandfractionalsharesofMunicipalMoney
MarketPortfolioheldbysuchshareholderontheClosingDate(defined
below).TheexchangeofMunicipalMoneyMarketPortfolio'sassetsfor
CapitalReservesClassShareswilloccurasof4:00p.m.Easterntimeon
October30,1997,orsuchotherdateasthepartiesmayagree(theClosing
Date).MunicipalMoneyMarketPortfoliowillthenbeliquidatedassoonas
practicablethereafter.
notresultinanygainorlossforfederalincometaxpurposestoMunicipal
MoneyMarketPortfolioorTaxExemptFundortotheshareholdersofeither
Fund.TherightsandprivilegesoftheformershareholdersofMunicipal
MoneyMarketPortfoliowillbeeffectivelyunchangedbytheReorganization,
exceptasdescribedonpage10undertheheading"FormsofOrganization."
MunicipalMoneyMarketPortfolioshareholderscurrentlyincur,andthe
shareholdertransactionexpensesthatTaxExemptFundCapitalReserves
ClassshareholderswillincuraftergivingeffecttotheReorganization,
and(ii)thecurrentfeesandexpensesofMunicipalMoneyMarketPortfolio
forthe12monthsendedJanuary31,1997(unaudited),andtheproforma
feesforTaxExemptFundCapitalReservesClassbasedonthesameperiod
(unaudited)aftergivingeffecttotheReorganization.
[DownloadTable]
MUNICIPALMONEYTAXEXEMPTFUND
MARKETPORTFOLIOCAPITALRESERVESCLASS
ExchangefeeNoneNone
thecaseofTaxExemptFund,areallocatedtotheappropriateClass,as
ThefollowingfiguresforMunicipalMoneyMarketPortfolioarebasedon
historicalexpenses.ThefollowingproformaexpensesforTaxExemptFund
CapitalReservesClassarebasedontheproposedexpensestructure
describedabove,withOtherExpensesestimated.Allfiguresarecalculated
asapercentageofaveragenetassets.
MUNICIPALPROFORMAEXPENSES
MONEYTAXEXEMPTFUND
MARKETCAPITALRESERVESCLASS
PORTFOLIO
60/101
12/24/2014
*FMRhasvoluntarilyagreedtoreimburseMunicipalMoneyMarketPortfolio
totheextentthattotaloperatingexpenses(excludinginterest,taxes,
brokeragecommissions,andextraordinaryexpenses)exceed0.99%ofthe
Fund'saveragenetassets.Ifthisagreementwerenotineffect,the
Fund'smanagementfeeandtotaloperatingexpenses,asapercentageof
averagenetassets,wouldhavebeen0.50%and1.18%,respectively.
**FMRhasvoluntarilyagreedtoreimburseTaxExemptFundCapital
ReservesClasstotheextentthattotaloperatingexpenses(excluding
0.90%oftheClass'saveragenetassets.Ifthisagreementwerenotin
effect,theClass'sotherexpensesandtotaloperatingexpenses,asa
percentageofaveragenetassets,wouldbeestimatedtobe0.29%and1.04%,
respectively.
investmentinMunicipalMoneyMarketPortfoliounderitscurrentexpenses,
andinTaxExemptFundCapitalReservesClassundertheproforma
expenses,calculatedattherates(afterreimbursement)statedabove,
assuminga5%annualreturn.
[DownloadTable]
MunicipalMoney$10$32$55$121
MarketPortfolio
TaxExemptFund$9$29$50$111
DISTRIBUTOR.NFSCdistributesMunicipalMoneyMarketPortfolio'sshares.
FidelityDistributorsCorporation(FDC),anaffiliateofFMR,currently
distributesTaxExemptFund'ssharesandwilldistributeTaxExemptFund
CapitalReservesClasssharesfollowingtheReorganization.
Rule12b1underthe1940Act,MunicipalMoneyMarketPortfoliocurrently
paysNFSCamonthlydistributionfeeatanannualrateof0.35%ofthe
Fund'saveragenetassets.Inaddition,theMunicipalMoneyMarket
PortfolioplanspecificallyrecognizesthatFMRmaymakepaymentsfromits
managementfeerevenue,pastprofits,orotherresourcestocompensate
financialintermediaries(includingNFSC)forproviding
distributionrelatedservicesfortheFund.TheBoardofTrusteesofDaily
MoneyFundhasauthorizedFMRtomakesuchpaymentsofupto0.25%ofthe
Fund'saveragenetassetsthroughoutthemonthbaseduponthelevelof
shareholdersupportanddistributionservicesprovided.
IfshareholdersapprovetheReorganization,TaxExemptFundCapital
ReservesClassshareswillbesubjecttoaDistributionandServicePlan
adoptedpursuanttoRule12b1underthe1940Act.Undertheplan,Capital
distributionofCapitalReservesClasssharesofTaxExemptFund.Capital
FMRoritsaffiliates,notbyTaxExemptFund,andwillnotbepaidfor
61/101
12/24/2014
ForFMRTexas'sservicestoMunicipalMoneyMarketPortfolio,FMRpaysFMR
Texas50%ofitsmanagementfee(beforeexpensereimbursementsbutafter
paymentsmadebyFMRpursuanttotheFund'sDistributionandServicePlan).
ForFMRTexas'sservicestoTaxExemptFund,FMRpaysFMRTexas50%ofits
managementfee(beforeexpensereimbursements).
FORMSOFORGANIZATION
MunicipalMoneyMarketPortfolioisadiversifiedfundofDailyMoney
Fund,anopenendmanagementinvestmentcompanyorganizedasaDelaware
businesstrustonSeptember29,1993.DailyMoneyFundisauthorizedto
issueanunlimitednumberofsharesofbeneficialinterest.Municipal
MoneyMarketPortfolioisauthorizedtoissueoneclassofshares.
TaxExemptFundisadiversifiedfundofNewburyStreetTrust,anopenend
December30,1991.BeforeMay30,1997,NewburyStreetTrustwasknownas
DailyTaxExemptMoneyFund,andTaxExemptFund,thentheonlyfundofthe
trust,alsowasknownasDailyTaxExemptMoneyFund.NewburyStreetTrust
isauthorizedtoissueanunlimitednumberofsharesofbeneficial
interest.TaxExemptFundiscurrentlyauthorizedtoissuetwoclassesof
sharesdesignatedTaxExemptFundDailyMoneyClass(formerlyknownas
DailyTaxExemptMoneyFundInitialClass)shares,whicharecurrently
outstanding,andTaxExemptFundCapitalReservesClassshares,which
willbeissuedinitiallytoMunicipalMoneyMarketPortfolioshareholders
inconnectionwiththeReorganization.Aseparatefilingwiththe
SecuritiesandExchangeCommission(theSEC)willbemadepriortothe
ClosingDateoftheReorganizationforthepurposeofregistering
TaxExemptFundCapitalReservesClasssharesforsale.
BecauseMunicipalMoneyMarketPortfolioandTaxExemptFundareseriesof
Delawarebusinesstrusts,organizedundersubstantiallysimilarTrust
Instruments,therightsofthesecurityholdersofMunicipalMoneyMarket
Portfoliounderstatelawandthegoverningdocumentsareexpectedto
remainunchangedaftertheReorganization,exceptwithregardto
shareholdervotingrights.ShareholdervotingrightsforMunicipalMoney
MarketPortfolioarebasedonthenumberofFundsharesowned(sharebased
voting),whereasshareholdervotingrightsforTaxExemptFundarebasedon
thetotaldollarinterestinTaxExemptFund(dollarbasedvoting).If
MunicipalMoneyMarketPortfolioshareholdersapprovetheReorganization,
theirvotingrightswouldnotbeaffectedbecauseimmediatelyfollowingthe
ReorganizationNewburyStreetTrustwillcompriseonlymoneymarketfunds,
whicharemanagedtomaintainastable$1.00shareprice.However,if
fundswithfluctuatingnetassetvaluespershareareaddedtoNewbury
StreetTrustinthefuture,relativevotingrightswouldbeaffected.In
thatevent,whilethedifferencesbetweentheFunds'votingrightswould
havenobearingonmattersaffectingonlyonefundofthetrust,onmatters
requiringtrustwidevotesinwhichallfundsofthetrustparticipate,
dollarbasedvotingwouldprovideshareholderswithvotingpowerthatis
proportionatetotheireconomicinterest,whereassharebasedvotingmay
provideshareholderswhoownsharesofafundwithalowernetassetvalue
pershare(NAV)thanotherfundsinthetrustwithadisproportionate
abilitytoaffectatrustwidevoterelativetoshareholdersofotherfunds
inthetrust.IfMunicipalMoneyMarketPortfolioshareholdersapprovethe
Reorganization,theirvotingrightswillchangetoreflectthoseof
TaxExemptFundshareholders.Formoreinformationregardingshareholder
rights,refertothesectionofeachFund'sStatementofAdditional
Informationcalled"DescriptionoftheTrust."
TheFundshaveessentiallythesameinvestmentobjective.MunicipalMoney
MarketPortfolioseekstoprovideinvestorswithashighalevelofcurrent
income,exemptfromfederalincometaxes,asisconsistentwithaportfolio
ofhighquality,shorttermmunicipalobligationsselectedonthebasisof
preservationofcapitalandliquidity.TaxExemptFundseekstoprovide
individualandinstitutionalinvestorswithashighalevelofcurrent
income,exemptfromfederalincometaxes,asisconsistentwithaportfolio
ofhighquality,shorttermmunicipalobligationsselectedonthebasisof
liquidityandstabilityofprincipal.InvestmentsintheFundsareneither
insurednorguaranteedbytheU.S.Government,andtherecanbeno
assurancethataFundwillmaintainastable$1.00shareprice.
EachFundinvestsinhighqualitymunicipalmoneymarketsecuritiesand
normallyinvestssothatatleast80%ofitsincomedistributionsisfree
fromfederalincometax.EachFundmayinvestmorethan25%ofitstotal
assetsintaxfreesecuritiesthatfinancesimilartypesofprojects.
TheFundshavedifferentpoliciesregardingsecuritieswhoseinterestisa
taxpreferenceitemforpurposesoftheAMT.MunicipalMoneyMarket
Portfoliomayinvestupto100%ofitsassetsinmunicipalsecurities
subjecttotheAMT.TaxExemptFunddoesnotcurrentlyintendtopurchase
municipalsecuritiessubjecttotheAMT.AsofApril30,1997,
approximately72%ofMunicipalMoneyMarketPortfolio'sassetswere
investedinsecuritiessubjecttotheAMT.AMTsecuritiesgenerallypay
higheryieldsthanmunicipalsecuritiesthatarefullytaxexempt,but
increasethetaxliabilityofsomeinvestors.
62/101
12/24/2014
IfshareholdersapprovetheReorganization,itisanticipatedthat
MunicipalMoneyMarketPortfoliowillsellanysecuritiessubjecttothe
AMTintheperiodbetweenshareholderapprovalandtheClosingDate.The
yieldspreadonsecuritiessubjecttotheAMTascomparedtosecuritiesnot
subjecttotheAMTisapproximately0.05%0.10%.Thistranslatesintoan
approximate0.03%0.08%yieldadvantageforMunicipalMoneyMarket
Portfoliogivenitsrecentlevelsofinvestmentinsecuritiessubjectto
theAMT.The0.03%0.08%yielddifferenceshouldbeoffset,however,by
the0.09%lowertotaloperatingexpenseratio(afterreimbursement)of
TaxExemptFundCapitalReservesClasssharesfollowingthe
Reorganization.IntheeventthatthesaleofeitherFund'sassetsbecomes
necessarypriortotheeffectivedateoftheReorganization,any
transactioncostsandtaxablegainorlossassociatedwithsuchadjustments
willbebornebytheindividualFundthatincurredthem.
oranyofitsagenciesorinstrumentalitiesor(TaxExemptFundonly)
securitiesofotherinvestmentcompanies)if,asaresult,(a)morethan5%
oftheFund'stotalassetswouldbeinvestedinthesecuritiesofthat
issuer,or(b)theFundwouldholdmorethan10%oftheoutstandingvoting
securitiesofthatissuer.
onlyfortemporaryoremergencypurposes(notforleveragingor
investment),butnotinanamountexceeding331/3%ofitstotalassets
(includingtheamountborrowed)lessliabilities(otherthanborrowings).
Anyborrowingsthatcometoexceedthisamount(byreasonofadeclinein
netassets,inthecaseofTaxExemptFund)willbereducedwithinthree
days(notincludingSundaysandholidays)totheextentnecessarytocomply
withthe331/3%limitation.Asamatterofnonfundamentalpolicy,each
FundmayborrowmoneyonlyfrombanksorotherfundsadvisedbyFMRoran
affiliateofFMR,orbyengaginginreverserepurchaseagreementswithany
party,andeachFundmaymakeadditionalinvestmentswhileborrowingsare
outstanding.
nonfundamentalpolicy,withtheexceptionofpurchasingdebtsecurities,
neitherFundcurrentlyintendstomakeloansorengageinrepurchase
agreements.
SHORTSALES.Asamatterofnonfundamentalpolicy,MunicipalMoney
MarketPortfoliodoesnotcurrentlyintendtosellsecuritiesshort,unless
itownsorhastherighttoobtainsecuritiesequivalentinkindandamount
tothesecuritiessoldshort,andprovidedthattransactionsinfutures
contractsandoptionsarenotdeemedtoconstitutesellingsecurities
short.Asamatteroffundamentalpolicy,TaxExemptFundmaynotmake
shortsalesofsecurities.
MARGINPURCHASES.Asamatterofnonfundamentalpolicy,subjectto
revisionupon60days'noticetoshareholders,MunicipalMoneyMarket
Portfoliodoesnotcurrentlyintendtopurchasesecuritiesonmargin,
exceptthattheFundmayobtainsuchshorttermcreditsasarenecessary
fortheclearanceoftransactions,andprovidedthatmarginpaymentsin
connectionwithfuturescontractsandoptionsonfuturescontractsdonot
constitutepurchasingsecuritiesonmargin.Asamatteroffundamental
policy,TaxExemptFundmaynotpurchaseanysecuritiesonmargin,except
forsuchshorttermcreditsasarenecessaryfortheclearanceof
transactions.
UNDERWRITING.Asamatteroffundamentalpolicy,MunicipalMoneyMarket
Portfoliomaynotunderwritesecuritiesissuedbyothers,excepttothe
extentthattheFundmaybeconsideredanunderwriterwithinthemeaningof
theSecuritiesActof1933inthedispositionofrestrictedsecurities.As
amatteroffundamentalpolicy,TaxExemptFundmaynotunderwriteany
issueofsecurities,excepttotheextentthatthepurchaseofmunicipal
bondsinaccordancewiththeFund'sinvestmentobjective,policies,and
restrictions,eitherdirectlyfromtheissuerorfromanunderwriterforan
issuer,maybedeemedunderwriting.
REALESTATE.Asamatteroffundamentalpolicy,MunicipalMoneyMarket
Portfoliomaynotpurchaseorsellrealestateunlessacquiredasaresult
ofownershipofsecuritiesorotherinstruments,butthispolicydoesnot
preventtheFundfrominvestinginsecuritiesorotherinstrumentsbacked
byrealestateorsecuritiesofcompaniesengagedintherealestate
business.Asamatteroffundamentalpolicy,TaxExemptFundmaynot
purchaseorsellrealestate,butthispolicydoesnotpreventtheFund
frominvestinginmunicipalbondsorotherobligationssecuredbyreal
63/101
12/24/2014
estateorintereststherein.
COMMODITIES.Asamatteroffundamentalpolicy,MunicipalMoneyMarket
Portfoliomaynotpurchaseorsellphysicalcommoditiesunlessacquiredas
aresultofownershipofsecuritiesorotherinstruments.Asamatterof
fundamentalpolicy,TaxExemptFundmaynotpurchaseorsellcommoditiesor
commodity(futures)contracts.
OIL,GAS,ANDMINERALEXPLORATIONPROGRAMS.Asamatteroffundamental
policy,TaxExemptFundmaynotinvestinoil,gasorothermineral
explorationordevelopmentprograms.TheBoardofTrusteesofDailyMoney
FundrecentlyapprovedtheeliminationofMunicipalMoneyMarket
Portfolio'sidenticalnonfundamentalpolicy(forthereasonsstated
below).
inilliquidsecurities.Consistentwithitsinvestmentobjectiveand
policies,eachFundalsomayenterintowhenissuedandforwardpurchaseor
saletransactionsandmayinvestinvariableandfloatingratesecurities,
municipalleaseobligations,andsecuritieswithputfeatures,andin
obligationsofU.S.territoriesandpossessionssuchasGuam,theVirgin
Islands,andPuertoRico,andtheirpoliticalsubdivisionsandpublic
corporations.MunicipalMoneyMarketPortfoliodoesnotcurrentlyintend
topurchasefuturescontractsoroptionsonfuturescontracts.This
operatingpolicymaybechangedonlywiththeTrustees'approvaland60
days'noticetoshareholders.
FMRnormallyinvestseachFund'sassetsaccordingtoitsinvestment
strategyanddoesnotexpecttoinvestinfederallytaxableobligations.
However,eachFundreservestherighttoholdasubstantialamountof
uninvestedcashortoinvestmorethannormallypermittedinfederally
taxableobligationsfortemporary,defensivepurposes.
itsaffiliates,whosegoalistoseekahighlevelofcurrentincomeexempt
fromfederalincometaxwhilemaintainingastable$1.00shareprice.
However,neitherFundcurrentlyintendstoinvestinrepurchaseagreements
andTaxExemptFunddoesnotcurrentlyintendtoinvestinamoneymarket
fund.
bothFunds,regardingaFund's(i)investmentsinthesecuritiesofother
investmentcompanies,(ii)investmentsinthesecuritiesofunseasoned
issuers,and(iii)purchasesandsalesoffuturescontractsandcall
options.Thesenonfundamentalpolicieswereoriginallyadoptedwith
respecttoeachFundsolelyinresponsetostatelawrequirements,which
wereinadditionto,andinmanycasesweremorerestrictivethan,federal
lawrequirements.Thesestatelawrequirementsarenolongerapplicable.
OPERATIONSOFTAXEXEMPTFUNDFOLLOWINGTHEREORGANIZATION
FMRdoesnotexpectTaxExemptFundtoreviseitsinvestmentobjectiveor
anticipatesignificantchangestoTaxExemptFund'smanagementortoagents
thatprovideTaxExemptFundwithservices.Specifically,theTrusteesand
officers,theinvestmentadviserandsubadviser,thedistributor,and
otheragentswillcontinuetoserveTaxExemptFundintheircurrent
capacities.
BecauseTaxExemptFund'sinvestmentpoliciesdifferinsomerespectsfrom
MunicipalMoneyMarketPortfolio'sinvestmentpolicies,certainofthe
securitiescurrentlyheldbyMunicipalMoneyMarketPortfoliomayneedto
besoldratherthantransferredtoTaxExemptFund.Asexplainedabove,
MunicipalMoneyMarketPortfoliomayinvestinsecuritiessubjecttothe
AMT,whereasTaxExemptFunddoesnotcurrentlyintendtopurchase
securitiessubjecttotheAMT.Therefore,ifshareholdersapprovethe
Reorganization,itisanticipatedthatMunicipalMoneyMarketPortfolio
willsellanysecuritiessubjecttotheAMTintheperiodbetween
shareholderapprovalandtheClosingDate.Anytransactioncostsand
taxablegainorlossassociatedwithsuchadjustmentstotheportfolioof
MunicipalMoneyMarketPortfoliowillbebornebyMunicipalMoneyMarket
Portfolio.Intheeventthatthesaleofanyassetsbecomesnecessary
aftertheeffectivedateoftheReorganization,anytransactioncostsand
taxablegainorlossassociatedwithsuchadjustmentswillbeborneby
TaxExemptFund.
TaxExemptFundiscurrentlyauthorizedtoissuetwoclassesofshares
designatedTaxExemptFundDailyMoneyClassshares,whicharecurrently
outstanding,andTaxExemptFundCapitalReservesClassshares,which
willbeissuedinitiallytoMunicipalMoneyMarketPortfolioshareholders
inconnectionwiththeReorganization.MunicipalMoneyMarketPortfoliois
currentlyauthorizedtoissueonlyoneclassofshares.
BothMunicipalMoneyMarketPortfolioandTaxExemptFundCapital
ReservesClassrequireaminimuminitialinvestmentof$1,000,aminimum
subsequentinvestmentof$250,andaminimumaccountbalanceof$500.Both
64/101
12/24/2014
MunicipalMoneyMarketPortfoliosharesandTaxExemptFundCapital
ReservesClasssharesaresoldwithoutasalescharge.
MunicipalMoneyMarketPortfolioisopenforbusinessanditsNAVis
normallycalculatedeachdaythatboththeFederalReserveBankofKansas
City(KansasCityFed)andtheNewYorkStockExchange(NYSE)areopen.
TaxExemptFundisopenforbusinessandtheNAVofCapitalReservesClass
sharesisnormallycalculatedeachdaythattheNYSEisopen.The
followingholidayclosingshavebeenscheduledfor1997:NewYear'sDay,
MartinLutherKing'sBirthday,Washington'sBirthday,GoodFriday,Memorial
Day,IndependenceDay,LaborDay,ColumbusDay(KansasCityFedonly),
VeteransDay(KansasCityFedonly),ThanksgivingDay,andChristmasDay.
AlthoughFMRexpectsthesameholidayscheduletobeobservedinthe
future,theKansasCityFedortheNYSEmaymodifyitsholidayscheduleat
anytime.
MunicipalMoneyMarketPortfoliosharesandTaxExemptFundCapital
ReservesClasssharesarepurchasedatthenextsharepricecalculated
afteranorderisreceivedandaccepted.Sharepriceisnormally
calculatedat12:00noonand4:00p.m.Easterntime.Sharesmaybe
purchasedbymail,bywire,orbyexchangefromanotherFidelityfund.
NeitherMunicipalMoneyMarketPortfolionorTaxExemptFundCapital
ReservesClassimposesafeeforwirepurchases;however,ifsharesare
purchasedthroughaninvestmentprofessional,theinvestmentprofessional
mayimposeafeeforwirepurchases.Sharespurchasedbefore12:00noon
Easterntimeareentitledtodividendsdeclaredthatday.Sharespurchased
after12:00noonEasterntimebegintoearndividendsonthefollowing
businessday.
includingcertainpurchasesbyexchange.OnanydaythattheKansasCity
Fed(MunicipalMoneyMarketPortfolioonly)ortheNYSEclosesearly,the
principalgovernmentsecuritiesmarketscloseearly(suchasondaysin
advanceofholidaysgenerallyobservedbyparticipantsinthemarkets),or
aspermittedbytheSEC,eachFundreservestherighttoadvancethetime
onthatdaybywhichpurchaseandredemptionordersmustbereceived.To
theextentthatportfoliosecuritiesaretradedinothermarketsondays
whentheKansasCityFed(MunicipalMoneyMarketPortfolioonly)orthe
NYSEisclosed,aFund's/Class'ssharepricemaybeaffectedondayswhen
shareholdersdonothaveaccesstotheFundtopurchaseorredeemshares.
UMBBank,n.a.(UMB),locatedat1010GrandAvenue,KansasCity,Missouri,
iseachFund'stransferagent,althoughitemploysFidelityInvestments
InstitutionalOperationsCompany,Inc.(FIIOC),anaffiliateofFMR,to
performthesefunctionsforeachFund.Pursuanttoasubarrangementwith
UMB,FIIOCperformstransferagency,dividenddisbursing,andshareholder
servicesforthesharesofeachFund.Inaddition,pursuanttoa
subarrangementwithUMB,FidelityServiceCompany,Inc.,alsoanaffiliate
ofFMR,calculatestheNAVanddividendsforthesharesofeachFundand
maintainsthegeneralaccountingrecordsforeachFund.NFSCdistributes
MunicipalMoneyMarketPortfolio'sshares.FDCcurrentlydistributes
TaxExemptFund'ssharesandwilldistributeTaxExemptFundCapital
ReservesClasssharesfollowingtheReorganization.
BothMunicipalMoneyMarketPortfoliosharesandTaxExemptFundCapital
ReservesClasssharesmayberedeemedonanybusinessdayattheir
respectiveshareprice.Sharesareredeemedatthenextshareprice
calculatedafteranorderisreceivedandaccepted.Asstatedabove,share
priceisnormallycalculatedat12:00noonand4:00p.m.Easterntime.
Sharesredeemedbefore12:00noonEasterntimedonotreceivethedividend
declaredonthedayofredemption.Sharesredeemedafter12:00noon
Easterntimedoreceivethedividenddeclaredonthedayofredemption.
BothMunicipalMoneyMarketPortfoliosharesandTaxExemptFundCapital
ReservesClasssharesmayberedeemedbymail,bytelephone,orbywire.
ReservesClassalsooffercheckwritingprivileges;theminimumamountfora
checkis$500.NeitherMunicipalMoneyMarketPortfolionorTaxExempt
FundCapitalReservesClasschargesafeeforwireredemptions;however,
ifsharesaresoldthroughaninvestmentprofessional,theinvestment
professionalmaychargeafeeforwireredemptions.Redemptionproceeds
willbewiredviatheFederalReserveWireSystemtotheredeeming
shareholder'sbankaccountofrecord.IfaFund'stransferagentreceives
aredemptionrequestbefore12:00noonEasterntime,redemptionproceeds
willnormallybewiredonthatday.IfaFund'stransferagentreceivesa
redemptionrequestafter12:00noonEasterntime,redemptionproceedswill
normallybewiredonthefollowingbusinessday.
collected.WhentheKansasCityFed(MunicipalMoneyMarketPortfolio
only)ortheNYSEisclosed(orwhentradingisrestricted)foranyreason
otherthanitscustomaryweekendorholidayclosings,orunderany
emergencycircumstancesasdeterminedbytheSECtomeritsuchaction,each
65/101
12/24/2014
Fundmaysuspendredemptionorpostponepaymentdates.
InthecaseofbothMunicipalMoneyMarketPortfolioandTaxExemptFund
CapitalReservesClass,ifashareholder'saccountbalancefallsbelow
$500,theshareholderwillbegiven30days'noticetoreestablishthe
minimumbalance.Iftheshareholderdoesnotincreasethebalance,
Fidelityreservestherighttoclosetheshareholder'saccountandsendthe
proceedstotheshareholder.Shareswillberedeemedattheirshareprice
onthedaytheaccountisclosed.
thatcurrentlyapplytoMunicipalMoneyMarketPortfolioshareswillapply
toTaxExemptFundCapitalReservesClassshares.MunicipalMoneyMarket
Portfolioshareholdersmayredeemtheirshares,orexchangetheirshares
forsharesofanyotheravailableFidelityfund,throughtheClosingDate.
EXCHANGES
MunicipalMoneyMarketPortfoliosharesmaybeexchangedforsharesofany
otherFidelityfundavailableintheshareholder'sstate.Inaddition,
MunicipalMoneyMarketPortfoliosharesmaybeacquiredthroughanexchange
ofsharesofotherFidelityfunds.Theexchangeprivilegesand
restrictionsthatcurrentlyapplytoMunicipalMoneyMarketPortfolio
shareswillapplytoTaxExemptFundCapitalReservesClassshares
followingtheReorganization.RefertoMunicipalMoneyMarketPortfolio's
Prospectusformoreinformationregardinghowtoexchangeshares.
(or,inthecaseofTaxExemptFund,sharesofthesameClassoftheFund)
paidincash.
OnorbeforetheClosingDate,MunicipalMoneyMarketPortfoliowill
suchpreviousdividendsanddistributionsattributabletoitscurrent
taxableyear,willhavetheeffectofdistributingsubstantiallyallofits
investmentcompanytaxableincomeandnetrealizedcapitalgains,ifany,
inordertomaintainitstaxstatusasaregulatedinvestmentcompany.
SHAREHOLDERSERVICES
ReservesClassoffersubaccountingandspecialservicesforinstitutions
thatwishtoopenmultipleaccounts(amasteraccountandsubaccounts).
RefertoMunicipalMoneyMarketPortfolio'sProspectusformoreinformation
regardingtheseservices.
MunicipalMoneyMarketPortfolioandTaxExemptFundhadcapitalloss
carryforwardsforfederaltaxpurposesaggregatingapproximately$25,000
and$98,000asofJuly31,1996andOctober31,1996,respectively.Under
currentfederaltaxlaw,TaxExemptFundmaybelimitedtousingonlya
portion,ifany,ofthecapitallosscarryforwardtransferredbyMunicipal
MoneyMarketPortfolioatthetimeoftheReorganization.Thereisno
assurancethatTaxExemptFundwillbeabletorealizesufficientcapital
gainstouseitscapitallosscarryforwardaswellasaportion,ifany,of
MunicipalMoneyMarketPortfolio'scapitallosscarryforward,beforethey
expire.ThecapitallosscarryforwardattributabletoMunicipalMoney
MarketPortfoliowillexpirebetweenJuly31,2000andJuly31,2004.The
capitallosscarryforwardattributabletoTaxExemptFundwillexpire
betweenOctober31,2000andOctober31,2004.
ratingservicehasratedthesecurity)or,ifunrated,judgedtobeof
equivalentqualitybyFMR.Thematurity(calculatedaccordingto
applicableregulations)ofeachinvestmentcannotexceed397days,anda
moneymarketfund'sdollarweightedaveragematuritycannotexceed90days.
TheserequirementsmeanthattheFundshavesubstantiallysimilarlevelsof
risk.
page11).However,asexplainedabove,MunicipalMoneyMarketPortfolio
mayinvestinsecuritiessubjecttotheAMT,whereasTaxExemptFunddoes
notcurrentlyintendtopurchasesecuritiessubjecttotheAMT.
66/101
12/24/2014
rates.
TOAPPROVEANAGREEMENTANDPLANOFREORGANIZATIONBETWEENMUNICIPALMONEY
MARKETPORTFOLIOANDTAXEXEMPTFUND
REORGANIZATIONPLAN
thisProxyStatement.
TheAgreementcontemplates(a)TaxExemptFundacquiringasoftheClosing
DatealloftheassetsofMunicipalMoneyMarketPortfolioinexchange
solelyforCapitalReservesClassSharesandtheassumptionbyTaxExempt
FundofMunicipalMoneyMarketPortfolio'sliabilities;and(b)the
distributionofCapitalReservesClassSharestotheshareholdersof
MunicipalMoneyMarketPortfolioasprovidedforintheAgreement.
TheassetsofMunicipalMoneyMarketPortfoliotobeacquiredby
TaxExemptFundincludeallcash,cashequivalents,securities,receivables
(includinginterestordividendsreceivables),claims,chosesinaction,
andotherpropertyownedbyMunicipalMoneyMarketPortfolio,andany
deferredorprepaidexpensesshownasanassetonthebooksofMunicipal
MoneyMarketPortfolioontheClosingDate.TaxExemptFundwillassume
fromMunicipalMoneyMarketPortfolioallliabilities,debts,obligations,
anddutiesofMunicipalMoneyMarketPortfolioofwhateverkindornature,
whetherabsolute,accrued,contingent,orotherwise,whetherornotarising
intheordinarycourseofbusiness,whetherornotdeterminableonthe
ClosingDate,andwhetherornotspecificallyreferredtointheAgreement;
provided,however,thatMunicipalMoneyMarketPortfoliowilluseitsbest
efforts,totheextentpracticable,todischargeallofitsknown
liabilitiespriortotheClosingDate,otherthanliabilitiesincurredin
theordinarycourseofbusiness.TaxExemptFundwilldeliverCapital
ReservesClassSharestoMunicipalMoneyMarketPortfolio,whichshares
MunicipalMoneyMarketPortfoliowillthendistributetoitsshareholders
sothateachMunicipalMoneyMarketPortfolioshareholderwillreceivethe
numberoffullandfractionalCapitalReservesClassSharesequaltothe
numberoffullandfractionalsharesofMunicipalMoneyMarketPortfolio
heldbysuchshareholderasoftheClosingDate.
ThevalueofMunicipalMoneyMarketPortfolio'sassetstobeacquiredby
TaxExemptFund,theamountofMunicipalMoneyMarketPortfolio's
liabilitiestobeassumedbyTaxExemptFund,andthesharepriceofa
CapitalReservesClassSharewillbedeterminedasofthecloseofbusiness
(4:00p.m.Easterntime)oftherespectiveFundontheClosingDate.
Portfoliosecuritieswillbevaluedonthebasisofamortizedcost.This
techniqueinvolvesinitiallyvaluinganinstrumentatitscostasadjusted
foramortizationofpremiumoraccretionofdiscountratherthanatits
currentmarketvalue.Theamortizedcostvalueofaninstrumentmaybe
higherorlowerthanthepriceaFundwouldreceiveifitsoldthe
instrument.IftheBoardofTrusteesofDailyMoneyFundandtheBoardof
TrusteesofNewburyStreetTrustbelievethatadeviationfromaFund's
amortizedcostpersharemayresultindilutionorotherunfairresultsto
shareholders,theBoardshaveagreedtotakesuchcorrectiveaction,if
any,astheydeemappropriatetoeliminateorreduce,totheextent
reasonablypracticable,thedilutionorunfairresults.
AsoftheClosingDate,MunicipalMoneyMarketPortfoliowilldistribute
toitsshareholdersofrecordtheCapitalReservesClassSharesit
received,sothateachMunicipalMoneyMarketPortfolioshareholderwill
receivethenumberoffullandfractionalCapitalReservesClassShares
equaltothenumberoffullandfractionalsharesofMunicipalMoneyMarket
PortfolioheldbysuchshareholderontheClosingDate;MunicipalMoney
MarketPortfoliowillbeliquidatedassoonaspracticablethereafter.Such
distributionwillbeaccomplishedbyopeningaccountsonthebooksof
TaxExemptFundinthenamesoftheMunicipalMoneyMarketPortfolio
shareholdersandbytransferringtheretoCapitalReservesClassShares.
EachMunicipalMoneyMarketPortfolioshareholder'saccountshallbe
creditedwiththerespectivePRORATAnumberoffullandfractional
(roundedtothethirddecimalplace)CapitalReservesClassSharesduethat
shareholder.TaxExemptFundshallnotissuecertificatesrepresentingits
sharesinconnectionwithsuchexchange.
Accordingly,immediatelyaftertheReorganization,eachformerMunicipal
MoneyMarketPortfolioshareholderwillownthenumberofCapitalReserves
ClassSharesequaltothenumberofthatshareholder'ssharesofMunicipal
MoneyMarketPortfolioimmediatelypriortotheReorganization.Theshare
priceofTaxExemptFundwillbeunchangedbythetransaction.Thus,the
Reorganizationwillnotresultinthedilutionofanyshareholderinterest.
booksofMunicipalMoneyMarketPortfolioasofthattimeshallbepaidby
thepersontowhomsuchsharesaretobeissuedasaconditionofsuch
transfer.AnyreportingresponsibilityofMunicipalMoneyMarketPortfolio
isandwillcontinuetobeitsresponsibilityuptoandincludingthe
67/101
12/24/2014
ClosingDateandsuchlaterdateonwhichMunicipalMoneyMarketPortfolio
isliquidated.
associatedwithportfolioadjustmentstoMunicipalMoneyMarketPortfolio
duetotheReorganizationwhichoccurpriortotheClosingDatewhichwill
bebornebyMunicipalMoneyMarketPortfolio.Anytransactioncosts
associatedwithportfolioadjustmentsduetotheReorganizationwhichoccur
aftertheClosingDatewillbebornebyTaxExemptFund.AFundmay
recognizeataxablegainorlossonthedispositionofsecuritiespursuant
totheseportfolioadjustments.Seethesectionentitled"Reasonsforthe
Reorganization."
Reorganization;
(8)theimpactofchangestotheinstitutionalmoneymarketproductlineon
theFundsandtheirshareholders;and
differencesnoted.
shareholdersofMunicipalMoneyMarketPortfoliowillreceiveTaxExempt
FundCapitalReservesClassshares,whichwillpaya0.25%managementfee
anda0.50%distributionfee.Thetotalmanagementanddistributionfees
of0.75%tobepaidbyTaxExemptFundCapitalReservesClasswillbe
0.10%lower,asapercentageofaveragenetassets,thanthetotal
managementanddistributionfeesof0.85%currentlypaidbyMunicipalMoney
MarketPortfolio.FMRalsoinformedtheBoardsthatitwouldvoluntarily
agreetoreimbursethetotaloperatingexpensesofTaxExemptFund
CapitalReservesClasstotheextentthatsuchexpenses(excluding
0.90%ofitsaveragenetassets0.09%lowerthanMunicipalMoneyMarket
Portfolio's0.99%voluntaryexpenselimitation.Inaddition,FMRinformed
theBoardsthatitexpectedtopaythecostsassociatedwiththe
Reorganization,includingprofessionalfeesandthecostsofproxy
solicitation,underMunicipalMoneyMarketPortfolio'svoluntaryexpense
limitation.FMRfurtherinformedtheBoardsthatalthoughMunicipalMoney
MarketPortfoliowouldbearanycosts(asdescribedabove)associatedwith
portfolioadjustmentsmadeinconnectionwiththeReorganization,FMR
believedthatsuchcostswouldbeminimalandwouldbecounterbalancedby
thereductioninthetotaloperatingexpensesthatMunicipalMoneyMarket
PortfolioshareholderswouldpayasholdersofCapitalReservesClass
Shares.
TheBoardsalsoconsideredthatformershareholdersofMunicipalMoney
MarketPortfoliowillreceivethenumberofCapitalReservesClassShares
equaltothenumberoftheirsharesofMunicipalMoneyMarketPortfolio.In
addition,theBoardsconsideredthattheFundsexpectedtoreceivean
opinionofcounselthattheReorganizationwouldnotresultinanygainor
lossforfederalincometaxpurposestoMunicipalMoneyMarketPortfolioor
TaxExemptFundortotheshareholdersofeitherFund.
68/101
12/24/2014
parvaluepershare).TaxExemptFundisoneofthreecurrentfundsofthe
trust.NewburyStreetTrust'strusteeshaveauthorizedthepublicoffering
oftwoclassesofsharesofTaxExemptFunddesignatedTaxExemptFund
DailyMoneyClassshares,whicharecurrentlyoutstanding,andTaxExempt
FundCapitalReservesClassshares,whichwillbeissuedinitiallyto
MunicipalMoneyMarketPortfolioshareholdersinconnectionwiththe
Reorganization.AseparatefilingwiththeSECwillbemadepriortothe
ClosingDateforthepurposeofregisteringTaxExemptFundCapital
ReservesClasssharesforsale.EachshareinaClassrepresentsanequal
proportionateinterestinTaxExemptFundwitheachothershareofthat
Class.SharesofTaxExemptFundentitletheirholderstoonevotefor
eachdollarofnetassetvalueheld(numberofsharesownedtimesthenet
assetvaluepershare)andaproportionatefractionalvoteforeach
fractionaldollaramountheld,exceptthateachClassofshareshas
exclusivevotingrightsonmatterspertainingtoitsplanofdistribution.
Foradditionalinformationregardingshareholdervotingrights,see"Forms
ofOrganization,"page10.EachshareofeachClassofTaxExemptFundis
entitledtoparticipateequallyindividendsandotherdistributionsandin
theproceedsofanyliquidation,exceptthatdividendsofeachClassmaybe
affecteddifferentlybytheallocationofClassspecificexpenses.
outstandingshares.
TheexchangeofMunicipalMoneyMarketPortfolio'sassetsforCapital
ReservesClassSharesandtheassumptionoftheliabilitiesofMunicipal
MoneyMarketPortfoliobyTaxExemptFundisintendedtoqualifyfor
federalincometaxpurposesasataxfreereorganizationundertheCode.
WithrespecttotheReorganization,theparticipatingFundshavereceived
anopinionfromKirkpatrick&LockhartLLP,counseltoMunicipalMoney
MarketPortfolioandTaxExemptFund,substantiallytotheeffectthat:
(i)TheacquisitionbyTaxExemptFundofalloftheassetsofMunicipal
MoneyMarketPortfoliosolelyinexchangeforCapitalReservesClassShares
andtheassumptionbyTaxExemptFundofMunicipalMoneyMarketPortfolio's
liabilities,followedbythedistributionbyMunicipalMoneyMarket
PortfolioofCapitalReservesClassSharestotheshareholdersofMunicipal
MoneyMarketPortfoliopursuanttotheliquidationofMunicipalMoney
MarketPortfolioandconstructivelyinexchangefortheirMunicipalMoney
MarketPortfolioshares,willconstituteareorganizationwithinthe
meaningofsection368(a)(1)(C)oftheCode,andMunicipalMoneyMarket
PortfolioandTaxExemptFundwilleachbe"apartytoareorganization"
withinthemeaningofsection368(b)oftheCode;
(ii)NogainorlosswillberecognizedbyMunicipalMoneyMarket
PortfoliouponthetransferofallofitsassetstoTaxExemptFundin
exchangesolelyforCapitalReservesClassSharesandTaxExemptFund's
assumptionofMunicipalMoneyMarketPortfolio'sliabilities,followedby
MunicipalMoneyMarketPortfolio'ssubsequentdistributionofthoseshares
toitsshareholdersinliquidationofMunicipalMoneyMarketPortfolio;
(iii)NogainorlosswillberecognizedbyTaxExemptFunduponthe
receiptoftheassetsofMunicipalMoneyMarketPortfolioinexchange
solelyforCapitalReservesClassSharesanditsassumptionofMunicipal
MoneyMarketPortfolio'sliabilities;
(iv)TheshareholdersofMunicipalMoneyMarketPortfoliowillrecognize
nogainorlossupontheexchangeoftheirMunicipalMoneyMarketPortfolio
sharessolelyforCapitalReservesClassShares;
(v)ThebasisofMunicipalMoneyMarketPortfolio'sassetsinthehands
ofTaxExemptFundwillbethesameasthebasisofthoseassetsinthe
handsofMunicipalMoneyMarketPortfolioimmediatelypriortothe
Reorganization,andtheholdingperiodofthoseassetsinthehandsof
TaxExemptFundwillincludetheholdingperiodofthoseassetsinthe
handsofMunicipalMoneyMarketPortfolio;
(vi)ThebasisofMunicipalMoneyMarketPortfolioshareholdersinCapital
ReservesClassShareswillbethesameastheirbasisinMunicipalMoney
MarketPortfoliosharestobesurrenderedinexchangetherefor;and
receivedbytheMunicipalMoneyMarketPortfolioshareholderswillinclude
theperiodduringwhichtheMunicipalMoneyMarketPortfoliosharestobe
surrenderedinexchangethereforwereheld,providedsuchMunicipalMoney
MarketPortfolioshareswereheldascapitalassetsbythoseshareholders
onthedateoftheReorganization.
ShareholdersofMunicipalMoneyMarketPortfolioshouldconsulttheirtax
advisersregardingtheeffect,ifany,oftheproposedReorganizationin
lightoftheirindividualcircumstances.Becausetheforegoingdiscussion
69/101
12/24/2014
relatesonlytothefederalincometaxconsequencesoftheReorganization,
MunicipalMoneyMarketPortfolioshareholdersalsoshouldconsulttheirtax
advisersastostateandlocaltaxconsequences,ifany,ofthe
Reorganization.
CAPITALIZATION
ThefollowingtableshowsthecapitalizationofMunicipalMoneyMarket
PortfolioandTaxExemptFund(thenknownasDailyTaxExemptMoneyFund)
asofJanuary31,1997(unaudited)andonaproformacombinedbasis
(unaudited)asofthatdategivingeffecttotheReorganization.
MUNICIPALMONEY$151,649,209$1.00151,671,200
MARKETPORTFOLIO
TAXEXEMPTFUND
DailyMoneyClass$475,283,694$1.00475,389,822
PROFORMACOMBINED
FUND
DailyMoneyClass$475,283,694$1.00475,389,822
CapitalReservesClass$151,649,209$1.00151,671,200
CONCLUSION
ofMunicipalMoneyMarketPortfolioandTaxExemptFundwouldnotbe
dilutedasaresultoftheReorganization.Intheeventthatthe
Reorganizationisnotconsummated,MunicipalMoneyMarketPortfoliowill
continuetoengageinbusinessasafundofaregisteredinvestmentcompany
andtheBoardofDailyMoneyFundwillconsiderotherproposalsforthe
reorganizationorliquidationoftheFund.
ADDITIONALINFORMATIONABOUTTAXEXEMPTFUND
TaxExemptFundcurrentlypaysFMRamonthlymanagementfeeatanannual
rateof0.25%ofitsaveragenetassets.Thismanagementfeeratewas
approvedbyshareholdersonMay9,1997,andwentintoeffectonMay31,
1997.Also,effectiveMay31,1997,underanewDistributionandService
PlanadoptedpursuanttoRule12b1underthe1940Act,TaxExemptFund
DailyMoneyClassbeganpayingFDCadistributionfeeof0.25%tocover
mostoftheClass'sdistributionrelatedcosts;inconnectionwiththis
change,TaxExemptFund'smanagementfeewasreducedfrom0.50%to0.25%.
TheProspectusforTaxExemptFundDailyMoneyClass,datedMay30,1997,
isenclosedwiththisProxyStatementandisincorporatedhereinby
reference.TheProspectuscontainsadditionalinformationaboutTaxExempt
Fundincludingitsinvestmentobjectiveandpolicies,investmentadviser,
advisoryfeesandexpenses,andorganization.Thefinancialhighlights
tablethatfollowsisforTaxExemptFundDailyMoneyClass.TaxExempt
FundCapitalReservesClassisexpectedtocommenceoperationsonOctober
31,1997.
TAXEXEMPTFUND:DAILYMONEYCLASS(FORMERLYDAILYTAXEXEMPTMONEYFUND)
SelectedPerShareDataandRatios
Yearsended1997D1996199519941993199219911990198919881987
October31
Netassetvalue,$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
beginningof
period
Incomefrom.015.030.033.022.021.029.044.053.056.045.039
Investment
Operations
Netinterest
income
Less(.015)(.030)(.033)(.022)(.021)(.029)(.044)(.053)(.056)(.045)(.039)
Distributions
Fromnet
interestincome
Netassetvalue,$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
end
ofperiod
TotalreturnA1.47%3.02%3.36%2.21%2.11%2.93%4.46%5.38%5.72%4.55%3.93%
Netassets,end$434$500$559$454$539$485$304$259$204$212$288
70/101
12/24/2014
ofperiod
(Inmillions)
Ratioof.65%B,C.65%B.65%B.65%B.61%.63%.65%B.65%B.64%B.70%B.63%
expenses
toaverage
netassets
Ratioofnet2.95%C2.98%3.31%2.17%2.09%2.86%4.29%5.32%5.64%4.37%3.87%
interest
incometo
average
netassets
ATOTALRETURNSFORPERIODSOFLESSTHANONEYEARARENOTANNUALIZEDAND
PERIODSSHOWN.
BFMRAGREEDTOREIMBURSEAPORTIONOFTHECLASS'SEXPENSESDURINGTHE
BEENHIGHER.
CANNUALIZED
DSIXMONTHSENDEDAPRIL30,1997(UNAUDITED)
MISCELLANEOUS
EXPERTS.TheauditedfinancialstatementsofMunicipalMoneyMarket
Portfolio,incorporatedbyreferenceintotheStatementofAdditional
ShareholdersforthefiscalyearendedJuly31,1996.Theauditedfinancial
statementsofTaxExemptFund,incorporatedbyreferenceintotheStatement
ofAdditionalInformation,havebeenauditedbyPriceWaterhouseLLP,
independentaccountants,whosereportthereonisincludedintheAnnual
ReporttoShareholdersforthefiscalyearendedOctober31,1996.The
financialstatementsauditedbyCoopers&LybrandL.L.P.andbyPrice
WaterhouseLLPhavebeenincorporatedbyreferenceinrelianceontheir
reportsgivenontheirauthorityasexpertsinauditingandaccounting.
UnauditedfinancialstatementsforMunicipalMoneyMarketPortfolioforthe
sixmonthperiodendedJanuary31,1997,andunauditedfinancialstatements
forTaxExemptFundforthesixmonthperiodendedApril30,1997,arealso
incorporatedbyreferenceintotheStatementofAdditionalInformation.
material,andotherinformationwiththeSEC.Suchreports,proxymaterial,
andotherinformationcanbeinspectedandcopiedatthePublicReference
FacilitiesmaintainedbytheSECat450FifthStreet,N.W.,WashingtonD.C.
20549,andattheNortheastRegionalOfficeoftheSEC,7WorldTrade
Center,Suite1300,NewYork,NewYork10048.Copiesofsuchmaterialalso
canbeobtainedfromthePublicReferenceBranch,OfficeofConsumer
AffairsandInformationServices,SecuritiesandExchangeCommission,
WashingtonD.C.20549,atprescribedrates.
Exhibit1
FORMOF
businesstrust,onbehalfofCapitalReserves:MunicipalMoneyMarket
Portfolio(MunicipalMoneyMarketPortfolio),aseriesofDailyMoney
Fund,andNewburyStreetTrust,aDelawarebusinesstrust,onbehalfof
TaxExemptFund(TaxExemptFund),aseriesofNewburyStreetTrust.Daily
MoneyFundandNewburyStreetTrustmaybereferredtohereincollectively
asthe"Trusts"oreachindividuallyasa"Trust."TaxExemptFundand
MunicipalMoneyMarketPortfoliomaybereferredtohereincollectivelyas
the"Funds"oreachindividuallyasa"Fund."
comprise:(a)thetransferofalloftheassetsofMunicipalMoneyMarket
PortfoliotoTaxExemptFundsolelyinexchangeforCapitalReservesClass
sharesofbeneficialinterestinTaxExemptFund(theCapitalReserves
ClassShares)andtheassumptionbyTaxExemptFundofMunicipalMoney
MarketPortfolio'sliabilities;and(b)theconstructivedistributionof
suchsharesbyMunicipalMoneyMarketPortfolioPRORATAtoits
shareholdersincompleteliquidationandterminationofMunicipalMoney
MarketPortfolioinexchangeforallofMunicipalMoneyMarketPortfolio's
outstandingshares.Theforegoingtransactionsarereferredtohereinas
71/101
12/24/2014
the"Reorganization."
1.REPRESENTATIONSANDWARRANTIESOFMUNICIPALMONEYMARKETPORTFOLIO.
MunicipalMoneyMarketPortfoliorepresentsandwarrantstoandagreeswith
TaxExemptFundthat:
(a)MunicipalMoneyMarketPortfolioisaseriesofDailyMoneyFund,a
businesstrustdulyorganized,validlyexisting,andingoodstandingunder
thelawsoftheStateofDelaware,andhasthepowertoownallofits
propertiesandassetsandtocarryoutitsobligationsunderthis
Agreement.Ithasallnecessaryfederal,state,andlocalauthorizations
tocarryonitsbusinessasnowbeingconductedandtocarryoutthis
Agreement;
(assupplementedJanuary2,1997),ofMunicipalMoneyMarketPortfolio
previouslyfurnishedtoTaxExemptFund,didnotanddonotcontainany
untruestatementofamaterialfactoromittostateamaterialfact
requiredtobestatedthereinornecessarytomakethestatementstherein
notmisleading;
pendingor,totheknowledgeofMunicipalMoneyMarketPortfolio,
threatenedagainstMunicipalMoneyMarketPortfoliowhichassertliability
onthepartofMunicipalMoneyMarketPortfolio.MunicipalMoneyMarket
Portfolioknowsofnofactswhichmightformthebasisfortheinstitution
ofsuchproceedings;
(e)MunicipalMoneyMarketPortfolioisnotin,andtheexecution,
delivery,andperformanceofthisAgreementwillnotresultin,violation
ofanyprovisionofitsTrustInstrumentorBylaws,or,totheknowledge
ofMunicipalMoneyMarketPortfolio,ofanyagreement,indenture,
instrument,contract,lease,orotherundertakingtowhichMunicipalMoney
MarketPortfolioisapartyorbywhichMunicipalMoneyMarketPortfoliois
boundorresultintheaccelerationofanyobligationortheimpositionof
anypenaltyunderanyagreement,judgmentordecreetowhichMunicipal
MoneyMarketPortfolioisapartyorisbound;
ScheduleofInvestments(includingmarketvalues)ofMunicipalMoneyMarket
PortfolioatJuly31,1996,havebeenauditedbyCoopers&LybrandL.L.P.,
independentaccountants,andhavebeenfurnishedtoTaxExemptFund
togetherwithsuchunauditedfinancialstatementsandscheduleof
investments(includingmarketvalues)forthesixmonthperiodended
January31,1997.SaidStatementofAssetsandLiabilitiesandScheduleof
(g)MunicipalMoneyMarketPortfoliohasnoknownliabilitiesofamaterial
nature,contingentorotherwise,otherthanthoseshownasbelongingtoit
onitsstatementofassetsandliabilitiesasofJuly31,1996,andthose
incurredintheordinarycourseofMunicipalMoneyMarketPortfolio's
businessasaninvestmentcompanysinceJuly31,1996;
andtheproxystatementofMunicipalMoneyMarketPortfolioincluded
therein(ProxyStatement),ontheeffectivedateoftheRegistration
StatementandinsofarastheyrelatetoMunicipalMoneyMarketPortfolio
(i)complyinallmaterialrespectswiththeprovisionsoftheSecurities
Actof1933,asamended(the1933Act),theSecuritiesExchangeActof
1934,asamended(the1934Act),andthe1940Act,andtherulesand
regulationsthereunder,and(ii)donotcontainanyuntruestatementofa
thereinornecessarytomakethestatementsthereinnotmisleading;andat
thetimeoftheshareholders'meetingreferredtoinSection7andonthe
ClosingDate,theprospectuscontainedintheRegistrationStatementof
whichtheProxyStatementisapart(theProspectus),asamendedor
supplemented,insofarasitrelatestoMunicipalMoneyMarketPortfolio,
doesnotcontainanyuntruestatementofamaterialfactoromittostatea
materialfactrequiredtobestatedthereinornecessarytomakethe
statementsthereinnotmisleading;
(i)AllmaterialcontractsandcommitmentsofMunicipalMoneyMarket
Portfolio(otherthanthisAgreement)willbeterminatedwithoutliability
toMunicipalMoneyMarketPortfoliopriortotheClosingDate(otherthan
thosemadeinconnectionwithredemptionsofsharesandthepurchaseand
saleofportfoliosecuritiesmadeintheordinarycourseofbusiness);
governmentalauthorityisrequiredfortheconsummationbyMunicipalMoney
72/101
12/24/2014
MarketPortfolioofthetransactionscontemplatedbythisAgreement,except
suchashavebeenobtainedunderthe1933Act,the1934Act,the1940Act,
andstatesecuritiesorblueskylaws(whichtermasusedhereinshall
includetheDistrictofColumbiaandPuertoRico);
(k)MunicipalMoneyMarketPortfoliohasfiledorwillfileallfederaland
statetaxreturnswhich,totheknowledgeofMunicipalMoneyMarket
Portfolio'sofficers,arerequiredtobefiledbyMunicipalMoneyMarket
Portfolioandhaspaidorwillpayallfederalandstatetaxesshowntobe
dueonsaidreturnsorprovisionshallhavebeenmadeforthepayment
thereof,and,tothebestofMunicipalMoneyMarketPortfolio'sknowledge,
nosuchreturniscurrentlyunderauditandnoassessmenthasbeenasserted
withrespecttosuchreturns;
(l)MunicipalMoneyMarketPortfoliohasmettherequirementsof
SubchapterMoftheCodeforqualificationandtreatmentasaregulated
investmentcompanyforallpriortaxableyearsandintendstomeetsuch
requirementsforitscurrenttaxableyearendingontheClosingDate(as
definedinSection6);
(m)AlloftheissuedandoutstandingsharesofMunicipalMoneyMarket
Portfolioare,andattheClosingDatewillbe,dulyandvalidlyissuedand
securitieslaws.AlloftheissuedandoutstandingsharesofMunicipal
MoneyMarketPortfoliowill,attheClosingDate,beheldbythepersons
andintheamountssetforthinthelistofshareholderssubmittedto
TaxExemptFundinaccordancewiththisAgreement;
ClosingDate,MunicipalMoneyMarketPortfoliowillhavethefullright,
power,andauthoritytosell,assign,transfer,anddeliveritsportfolio
securitiesandanyotherassetsofMunicipalMoneyMarketPortfoliotobe
transferredtoTaxExemptFundpursuanttothisAgreement.AttheClosing
Date,subjectonlytothedeliveryofMunicipalMoneyMarketPortfolio's
portfoliosecuritiesandanysuchotherassetsascontemplatedbythis
Agreement,TaxExemptFundwillacquireMunicipalMoneyMarketPortfolio's
portfoliosecuritiesandanysuchotherassetssubjecttonoencumbrances,
liens,orsecurityinterests(exceptforthosethatmayariseinthe
ordinarycourseandaredisclosedtoTaxExemptFund)andwithoutany
restrictionsuponthetransferthereof;and
actiononthepartofMunicipalMoneyMarketPortfolio,andthisAgreement
constitutesavalidandbindingobligationofMunicipalMoneyMarket
Portfolioenforceableinaccordancewithitsterms,subjecttoshareholder
approval.
2.REPRESENTATIONSANDWARRANTIESOFTAXEXEMPTFUND.TaxExemptFund
representsandwarrantstoandagreeswithMunicipalMoneyMarketPortfolio
that:
(a)TaxExemptFundisaseriesofNewburyStreetTrust,abusinesstrust
dulyorganized,validlyexisting,andingoodstandingunderthelawsof
theStateofDelaware,andhasthepowertoownallofitspropertiesand
andeffect;
(c)TheProspectusandtheStatementofAdditionalInformationof
TaxExemptFund,bothdatedMay30,1997,previouslyfurnishedtoMunicipal
MoneyMarketPortfoliodidnotanddonotcontainanyuntruestatementofa
pendingor,totheknowledgeofTaxExemptFund,threatenedagainst
TaxExemptFundwhichassertliabilityonthepartofTaxExemptFund.
TaxExemptFundknowsofnofactswhichmightformthebasisforthe
institutionofsuchproceedings;
(e)TaxExemptFundisnotin,andtheexecution,delivery,andperformance
ofthisAgreementwillnotresultin,violationofanyprovisionofits
TrustInstrumentorBylaws,or,totheknowledgeofTaxExemptFund,of
anyagreement,indenture,instrument,contract,lease,orotherundertaking
towhichTaxExemptFundisapartyorbywhichTaxExemptFundisboundor
resultintheaccelerationofanyobligationortheimpositionofany
penaltyunderanyagreement,judgment,ordecreetowhichTaxExemptFund
isapartyorisbound;
ScheduleofInvestments(includingmarketvalues)ofTaxExemptFundat
October31,1996,havebeenauditedbyPriceWaterhouseLLP,independent
accountants,andhavebeenfurnishedtoMunicipalMoneyMarketPortfolio
togetherwithsuchunauditedfinancialstatementsandscheduleof
investments(includingmarketvalues)forthesixmonthperiodendedApril
30,1997.SaidStatementofAssetsandLiabilitiesandScheduleof
73/101
12/24/2014
(g)TaxExemptFundhasnoknownliabilitiesofamaterialnature,
statementofassetsandliabilitiesasofOctober31,1996andthose
incurredintheordinarycourseofTaxExemptFund'sbusinessasan
investmentcompanysinceOctober31,1996;
governmentalauthorityisrequiredfortheconsummationbyTaxExemptFund
ofthetransactionscontemplatedbythisAgreement,exceptsuchashave
beenobtainedunderthe1933Act,the1934Act,the1940Act,andstate
(i)TaxExemptFundhasfiledorwillfileallfederalandstatetax
returnswhich,totheknowledgeofTaxExemptFund'sofficers,arerequired
tobefiledbyTaxExemptFundandhaspaidorwillpayallfederaland
statetaxesshowntobedueonsaidreturnsorprovisionshallhavebeen
madeforthepaymentthereof,and,tothebestofTaxExemptFund's
knowledge,nosuchreturniscurrentlyunderauditandnoassessmenthas
beenassertedwithrespecttosuchreturns;
(j)TaxExemptFundhasmettherequirementsofSubchapterMoftheCode
forqualificationandtreatmentasaregulatedinvestmentcompanyforall
priortaxableyearsandintendstomeetsuchrequirementsforitscurrent
taxableyearendingonOctober31,1997;
MunicipalMoneyMarketPortfoliowillhavebeendulyauthorizedand,when
issuedanddeliveredpursuanttothisAgreement,willbelegallyand
validlyissuedandwillbefullypaidandnonassessable(exceptas
disclosedinTaxExemptFund'sStatementofAdditionalInformation)by
TaxExemptFund,andnoshareholderofTaxExemptFundwillhaveany
preemptiverightofsubscriptionorpurchaseinrespectthereof;
actiononthepartofTaxExemptFund,andthisAgreementconstitutesa
validandbindingobligationofTaxExemptFundenforceableinaccordance
withitsterms,subjecttoapprovalbytheshareholdersofMunicipalMoney
MarketPortfolio;
dateoftheRegistrationStatementandinsofarastheyrelatetoTaxExempt
theProspectus,asamendedorsupplemented,insofarasitrelatesto
TaxExemptFund,willnotcontainanyuntruestatementofamaterialfact
oromittostateamaterialfactrequiredtobestatedthereinornecessary
tomakethestatementsthereinnotmisleading;
laws;and
TaxExemptFundhavebeenofferedforsaleandsoldinconformitywiththe
3.REORGANIZATION.
(a)SubjecttotherequisiteapprovaloftheshareholdersofMunicipal
MoneyMarketPortfolioandtotheothertermsandconditionscontained
herein,MunicipalMoneyMarketPortfolioagreestoassign,sell,convey,
transfer,anddelivertoTaxExemptFundasoftheClosingDateallofthe
assetsofMunicipalMoneyMarketPortfolioofeverykindandnature
existingontheClosingDate.TaxExemptFundagreesinexchangetherefor:
(i)toassumeallofMunicipalMoneyMarketPortfolio'sliabilities
existingonoraftertheClosingDate,whetherornotdeterminableonthe
ClosingDate,and(ii)toissueanddelivertoMunicipalMoneyMarket
PortfoliothenumberoffullandfractionalCapitalReservesClassShares
equaltothenumberoffullandfractionalsharesofMunicipalMoneyMarket
Portfoliothenoutstanding.
(b)TheassetsofMunicipalMoneyMarketPortfoliotobeacquiredby
TaxExemptFundshallinclude,withoutlimitation,allcash,cash
equivalents,securities,receivables(includinginterestordividends
receivables),claims,chosesinaction,andotherpropertyownedby
MunicipalMoneyMarketPortfolio,andanydeferredorprepaidexpenses
shownasanassetonthebooksofMunicipalMoneyMarketPortfolioonthe
ClosingDate.MunicipalMoneyMarketPortfoliowillpayorcausetobepaid
toTaxExemptFundanydividendorinterestpaymentsreceivedbyitonor
aftertheClosingDatewithrespecttotheassetstransferredtoTaxExempt
Fundhereunder,andTaxExemptFundwillretainanydividendorinterest
paymentsreceivedbyitaftertheValuationTimewithrespecttotheassets
transferredhereunderwithoutregardtothepaymentdatethereof.
74/101
12/24/2014
(c)TheliabilitiesofMunicipalMoneyMarketPortfoliotobeassumedby
TaxExemptFundshallinclude(exceptasotherwiseprovidedforherein)all
ofMunicipalMoneyMarketPortfolio'sliabilities,debts,obligations,and
duties,ofwhateverkindornature,whetherabsolute,accrued,contingent,
orotherwise,whetherornotarisingintheordinarycourseofbusiness,
specificallyreferredtointhisAgreement.Notwithstandingtheforegoing,
MunicipalMoneyMarketPortfolioagreestouseitsbesteffortsto
dischargeallofitsknownliabilitiespriortotheClosingDate,other
thanliabilitiesincurredintheordinarycourseofbusiness.
convenientlypracticable(theLiquidationDate),MunicipalMoneyMarket
PortfoliowillconstructivelydistributePRORATAtoitsshareholdersof
record,determinedasoftheValuationTimeontheClosingDate,the
CapitalReservesClassSharesinexchangeforsuchshareholders'sharesof
beneficialinterestinMunicipalMoneyMarketPortfolioandMunicipalMoney
MarketPortfoliowillbeliquidatedinaccordancewithDailyMoneyFund's
TrustInstrument.SuchdistributionshallbeaccomplishedbytheFunds'
transferagentopeningaccountsonTaxExemptFund'ssharetransferbooks
inthenamesoftheMunicipalMoneyMarketPortfolioshareholdersand
transferringtheCapitalReservesClassSharesthereto.EachMunicipal
MoneyMarketPortfolioshareholder'saccountshallbecreditedwiththe
respectivePRORATAnumberoffullandfractional(roundedtothethird
decimalplace)CapitalReservesClassSharesduethatshareholder.All
outstandingMunicipalMoneyMarketPortfolioshares,includingany
representedbycertificates,shallsimultaneouslybecanceledonMunicipal
MoneyMarketPortfolio'ssharetransferrecords.TaxExemptFundshallnot
issuecertificatesrepresentingtheCapitalReservesClassSharesin
connectionwiththeReorganization.
(e)AnyreportingresponsibilityofMunicipalMoneyMarketPortfoliois
andshallremainitsresponsibilityuptoandincludingthedateonwhich
itisterminated.
SharesinanameotherthanthatoftheregisteredholderonMunicipal
MoneyMarketPortfolio'sbooksoftheMunicipalMoneyMarketPortfolio
sharesconstructivelyexchangedfortheCapitalReservesClassSharesshall
bepaidbythepersontowhomsuchCapitalReservesClassSharesaretobe
issued,asaconditionofsuchtransfer.
4.VALUATION.
(b)OntheClosingDate,TaxExemptFundwilldelivertoMunicipalMoney
MarketPortfoliothenumberoffullandfractionalCapitalReservesClass
SharesequaltothenumberoffullandfractionalsharesofMunicipalMoney
MarketPortfoliothenoutstanding.
toMunicipalMoneyMarketPortfolio,thevalueoftheassetsofMunicipal
MoneyMarketPortfoliotransferredhereunder,andthevalueofthe
liabilitiesofMunicipalMoneyMarketPortfoliotobeassumedhereunder
shallineachcasebedeterminedasoftheValuationTime.
inthemannersetforthinthethencurrentTaxExemptFundCapital
ReservesClassProspectusandStatementofAdditionalInformation,andthe
valueoftheassetsandliabilitiesofMunicipalMoneyMarketPortfolio
shallbecomputedinthemannersetforthinthethencurrentMunicipal
MoneyMarketPortfolioProspectusandStatementofAdditionalInformation.
MunicipalMoneyMarketPortfolioandTaxExemptFund.
5.FEES;EXPENSES.
(a)MunicipalMoneyMarketPortfolioshallberesponsibleforall
expenses,feesandothercharges,subjecttoFMR'svoluntaryexpense
limitation,ifapplicable.Anymergerrelatedexpenseswhichmaybe
attributabletoTaxExemptFundwillbebornebyTaxExemptFund,subject
toFMR'svoluntaryexpenselimitation,ifapplicable.
(b)EachofTaxExemptFundandMunicipalMoneyMarketPortfoliorepresents
thatthereisnopersonwhohasdealtwithitwhobyreasonofsuch
dealingsisentitledtoanybroker'sorfinder'sorothersimilarfeeor
commissionarisingoutofthetransactionscontemplatedbythisAgreement.
6.CLOSINGDATE.
othertime,date,andplaceagreedtobyMunicipalMoneyMarketPortfolio
andTaxExemptFund(theClosingDate).
75/101
12/24/2014
assetvalueofMunicipalMoneyMarketPortfolioandthenetassetvalueper
shareofTaxExemptFundisimpracticable,theValuationTimeandthe
ClosingDateshallbepostponeduntilthefirstbusinessdayaftertheday
whensuchtradingshallhavebeenfullyresumedandsuchreportingshall
havebeenrestored,orsuchotherdateasthepartiesmayagree.
7.SHAREHOLDERMEETINGANDTERMINATIONOFMUNICIPALMONEYMARKET
PORTFOLIO.
(a)MunicipalMoneyMarketPortfolioagreestocallameetingofits
shareholdersaftertheeffectivedateoftheRegistrationStatement,to
considertransferringitsassetstoTaxExemptFundashereinprovided,
adoptingthisAgreement,andauthorizingtheliquidationofMunicipalMoney
MarketPortfolio.
(b)MunicipalMoneyMarketPortfolioagreesthatassoonasreasonably
practicableafterdistributionoftheCapitalReservesClassShares,
MunicipalMoneyMarketPortfolioshallbeterminatedasaseriesofDaily
MoneyFundpursuanttoitsTrustInstrument,anyfurtheractionsshallbe
takeninconnectiontherewithasrequiredbyapplicablelaw,andonand
aftertheClosingDateMunicipalMoneyMarketPortfolioshallnotconduct
anybusinessexceptinconnectionwithitsliquidationandtermination.
8.CONDITIONSTOOBLIGATIONSOFTAXEXEMPTFUND.Theobligationsof
TaxExemptFundhereundershallbesubjecttothefollowingconditions:
(a)ThatMunicipalMoneyMarketPortfoliofurnishestoTaxExemptFunda
statement,datedasoftheClosingDate,signedbyanofficerofDaily
MoneyFund,certifyingthatasoftheValuationTimeandtheClosingDate
allrepresentationsandwarrantiesofMunicipalMoneyMarketPortfoliomade
inthisAgreementaretrueandcorrectinallmaterialrespectsandthat
MunicipalMoneyMarketPortfoliohascompliedwithalltheagreementsand
satisfiedalltheconditionsonitsparttobeperformedorsatisfiedator
priortosuchdates;
(b)ThatMunicipalMoneyMarketPortfoliofurnishesTaxExemptFundwith
copiesoftheresolutions,certifiedbyanofficerofDailyMoneyFund,
evidencingtheadoptionofthisAgreementandtheapprovalofthe
transactionscontemplatedhereinbytherequisitevoteoftheholdersof
theoutstandingsharesofbeneficialinterestofMunicipalMoneyMarket
Portfolio;
(c)That,onorpriortotheClosingDate,MunicipalMoneyMarket
Portfoliowilldeclareoneormoredividendsordistributionswhich,
togetherwithallprevioussuchdividendsordistributionsattributableto
itscurrenttaxableyear,shallhavetheeffectofdistributingtothe
shareholdersofMunicipalMoneyMarketPortfoliosubstantiallyallof
MunicipalMoneyMarketPortfolio'sinvestmentcompanytaxableincomeand
allofitsnetrealizedcapitalgain,ifany,asoftheClosingDate;
(d)ThatMunicipalMoneyMarketPortfolioshalldelivertoTaxExemptFund
attheClosingastatementofitsassetsandliabilities,togetherwitha
listofitsportfoliosecuritiesshowingeachsuchsecurity'sadjustedtax
basisandholdingperiodbylot,withvaluesdeterminedasprovidedin
Section4ofthisAgreement,allasoftheValuationTime,certifiedon
MunicipalMoneyMarketPortfolio'sbehalfbyitsTreasurerorAssistant
Treasurer;
(e)ThatMunicipalMoneyMarketPortfolio'scustodianshalldeliverto
TaxExemptFundacertificateidentifyingtheassetsofMunicipalMoney
MarketPortfolioheldbysuchcustodianasoftheValuationTimeonthe
ClosingDateandstatingthatasoftheValuationTime:(i)theassets
heldbythecustodianwillbetransferredtoTaxExemptFund;(ii)
MunicipalMoneyMarketPortfolio'sassetshavebeendulyendorsedinproper
formfortransferinsuchconditionastoconstitutegooddeliverythereof;
and(iii)tothebestofthecustodian'sknowledge,allnecessarytaxesin
conjunctionwiththedeliveryoftheassets,includingallapplicable
federalandstatestocktransferstamps,ifany,havebeenpaidor
provisionforpaymenthasbeenmade;
(f)ThatMunicipalMoneyMarketPortfolio'stransferagentshalldeliverto
TaxExemptFundattheClosingacertificatesettingforththenumberof
sharesofMunicipalMoneyMarketPortfoliooutstandingasoftheValuation
Timeandthenameandaddressofeachholderofrecordofanysuchshares
andthenumberofsharesheldofrecordbyeachsuchshareholder;
(g)ThatMunicipalMoneyMarketPortfoliocallsameetingofits
shareholderstobeheldaftertheeffectivedateoftheRegistration
Statement,toconsidertransferringitsassetstoTaxExemptFundasherein
provided,adoptingthisAgreement,andauthorizingtheliquidationand
terminationofMunicipalMoneyMarketPortfolio;
(h)ThatMunicipalMoneyMarketPortfoliodeliverstoTaxExemptFunda
certificateofanofficerofDailyMoneyFund,datedasoftheClosing
Date,thattherehasbeennomaterialadversechangeinMunicipalMoney
MarketPortfolio'sfinancialpositionsinceJuly31,1996,otherthan
changesinthemarketvalueofitsportfoliosecurities,orchangesdueto
netredemptionsofitsshares,dividendspaid,orlossesfromoperations;
and
ofMunicipalMoneyMarketPortfolioshallhavebeenofferedforsaleand
soldinconformitywithallapplicablestatesecuritieslawsand,tothe
extentthatanyauditoftherecordsofMunicipalMoneyMarketPortfolioor
itstransferagentbyTaxExemptFundoritsagentsshallhaverevealed
76/101
12/24/2014
otherwise,MunicipalMoneyMarketPortfolioshallhavetakenallactions
thatintheopinionofTaxExemptFundarenecessarytoremedyanyprior
failureonthepartofMunicipalMoneyMarketPortfoliotohaveofferedfor
saleandsoldsuchsharesinconformitywithsuchlaws.
9.CONDITIONSTOOBLIGATIONSOFMUNICIPALMONEYMARKETPORTFOLIO.
(a)ThatTaxExemptFundshallhaveexecutedanddeliveredtoMunicipal
MoneyMarketPortfolioanAssumptionofLiabilities,certifiedbyan
officerofNewburyStreetTrust,datedasoftheClosingDatepursuantto
whichTaxExemptFundwillassumealloftheliabilitiesofMunicipalMoney
MarketPortfolioexistingattheValuationTimeinconnectionwiththe
transactionscontemplatedbythisAgreement;
(b)ThatTaxExemptFundfurnishestoMunicipalMoneyMarketPortfolioa
statement,datedasoftheClosingDate,signedbyanofficerofNewbury
StreetTrust,certifyingthatasoftheValuationTimeandtheClosingDate
allrepresentationsandwarrantiesofTaxExemptFundmadeinthis
Agreementaretrueandcorrectinallmaterialrespects,andTaxExempt
Fundhascompliedwithalltheagreementsandsatisfiedalltheconditions
onitsparttobeperformedorsatisfiedatorpriortosuchdates;and
(c)ThatMunicipalMoneyMarketPortfolioshallhavereceivedanopinion
ofKirkpatrick&LockhartLLP,counseltoMunicipalMoneyMarketPortfolio
andTaxExemptFund,totheeffectthattheCapitalReservesClassShares
aredulyauthorizedandupondeliverytoMunicipalMoneyMarketPortfolio
asprovidedinthisAgreementwillbevalidlyissuedandwillbefullypaid
andnonassessablebyTaxExemptFund(exceptasdisclosedinTaxExempt
Fund'sStatementofAdditionalInformation)andnoshareholderof
TaxExemptFundhasanypreemptiverightofsubscriptionorpurchasein
respectthereof.
10.CONDITIONSTOOBLIGATIONSOFTAXEXEMPTFUNDANDMUNICIPALMONEY
MARKETPORTFOLIO.
holdersoftheoutstandingsharesofbeneficialinterestofMunicipalMoney
MarketPortfolio;
deemednecessarybyTaxExemptFundorMunicipalMoneyMarketPortfolioto
permitconsummation,inallmaterialrespects,ofthetransactions
contemplatedherebyshallhavebeenobtained,exceptwherefailureto
obtainanysuchconsent,order,orpermitwouldnotinvolveariskofa
materialadverseeffectontheassetsorpropertiesofTaxExemptFundor
MunicipalMoneyMarketPortfolio,providedthateitherpartyheretomayfor
itselfwaiveanyofsuchconditions;
institutedor,totheknowledgeofTaxExemptFundandMunicipalMoney
MarketPortfolio,threatenedbytheCommission;and
(f)ThatTaxExemptFundandMunicipalMoneyMarketPortfolioshallhave
receivedanopinionofKirkpatrick&LockhartLLPsatisfactoryto
TaxExemptFundandMunicipalMoneyMarketPortfoliothatforfederal
incometaxpurposes:
368(a)(1)(C)oftheCode,andMunicipalMoneyMarketPortfolioand
TaxExemptFundwilleachbepartiestotheReorganizationundersection
368(b)oftheCode;
(ii)NogainorlosswillberecognizedbyMunicipalMoneyMarket
PortfoliouponthetransferofallofitsassetstoTaxExemptFundin
exchangesolelyfortheCapitalReservesClassSharesandtheassumptionof
MunicipalMoneyMarketPortfolio'sliabilitiesfollowedbythedistribution
ofthoseCapitalReservesClassSharestotheshareholdersofMunicipal
MoneyMarketPortfolioinliquidationofMunicipalMoneyMarketPortfolio;
(iii)NogainorlosswillberecognizedbyTaxExemptFundonthe
receiptofMunicipalMoneyMarketPortfolio'sassetsinexchangesolelyfor
theCapitalReservesClassSharesandtheassumptionofMunicipalMoney
MarketPortfolio'sliabilities;
(iv)ThebasisofMunicipalMoneyMarketPortfolio'sassetsinthehands
ofTaxExemptFundwillbethesameasthebasisofsuchassetsin
MunicipalMoneyMarketPortfolio'shandsimmediatelypriortothe
Reorganization;
(v)TaxExemptFund'sholdingperiodintheassetstobereceivedfrom
MunicipalMoneyMarketPortfoliowillincludeMunicipalMoneyMarket
Portfolio'sholdingperiodinsuchassets;
(vi)AMunicipalMoneyMarketPortfolioshareholderwillrecognizeno
gainorlossontheexchangeofhisorhersharesofbeneficialinterestin
MunicipalMoneyMarketPortfoliofortheCapitalReservesClassSharesin
theReorganization;
77/101
12/24/2014
(vii)AMunicipalMoneyMarketPortfolioshareholder'sbasisinthe
CapitalReservesClassSharestobereceivedbyhimorherwillbethesame
ashisorherbasisintheMunicipalMoneyMarketPortfolioshares
exchangedtherefor;and
(viii)AMunicipalMoneyMarketPortfolioshareholder'sholdingperiod
forhisorherCapitalReservesClassShareswillincludetheholding
periodofMunicipalMoneyMarketPortfoliosharesexchanged,providedthat
thoseMunicipalMoneyMarketPortfolioshareswereheldascapitalassets
onthedateoftheReorganization.
Notwithstandinganythinghereintothecontrary,eachofMunicipalMoney
MarketPortfolioandTaxExemptFundmaynotwaivetheconditionssetforth
inthissubsection10(f).
11.COVENANTSOFTAXEXEMPTFUNDANDMUNICIPALMONEYMARKETPORTFOLIO.
(a)TaxExemptFundandMunicipalMoneyMarketPortfolioeachcovenantsto
operateitsrespectivebusinessintheordinarycoursebetweenthedate
hereofandtheClosingDate,itbeingunderstoodthatsuchordinarycourse
ofbusinesswillincludethepaymentofcustomarydividendsand
distributions;
(b)MunicipalMoneyMarketPortfoliocovenantsthatitisnotacquiring
theCapitalReservesClassSharesforthepurposeofmakingany
distributionotherthaninaccordancewiththetermsofthisAgreement;
(c)MunicipalMoneyMarketPortfoliocovenantsthatitwillassist
TaxExemptFundinobtainingsuchinformationasTaxExemptFundreasonably
requestsconcerningthebeneficialownershipofMunicipalMoneyMarket
Portfolio'sshares;and
(d)MunicipalMoneyMarketPortfoliocovenantsthatitsliquidationand
terminationwillbeeffectedinthemannerprovidedinitsTrustInstrument
inaccordancewithapplicablelawandaftertheClosingDate,Municipal
MoneyMarketPortfoliowillnotconductanybusinessexceptinconnection
TaxExemptFundandMunicipalMoneyMarketPortfoliomayterminatethis
Agreementbymutualagreement.Inaddition,eitherTaxExemptFundor
MunicipalMoneyMarketPortfoliomayatitsoptionterminatethisAgreement
atorpriortotheClosingDatebecause:
or
damagesonthepartofMunicipalMoneyMarketPortfolioorTaxExemptFund,
ortheirrespectiveTrusteesorofficers.
StateofDelaware.
President,anyVicePresident,orTreasurerofTaxExemptFundorMunicipal
MoneyMarketPortfolio;provided,however,thatfollowingtheshareholders'
meetingcalledbyMunicipalMoneyMarketPortfoliopursuanttoSection7of
thisAgreement,nosuchamendmentmayhavetheeffectofchangingthe
provisionsfordeterminingthenumberofCapitalReservesClassSharesto
bepaidtoMunicipalMoneyMarketPortfolioshareholdersunderthis
Agreementtothedetrimentofsuchshareholderswithouttheirfurther
approval.
suchFund.
15.ASSIGNMENT.
78/101
12/24/2014
ofthisAgreement.
Pleasereadthisprospectusbeforeinvesting,andkeepitonfilefor
futurereference.Itcontainsimportantinformation,includinghoweach
fundinvestsandtheservicesavailabletoshareholders.
Tolearnmoreabouteachfundanditsinvestments,youcanobtainacopyof
afund'smostrecentfinancialreportandportfoliolistingoracopyof
theStatementofAdditionalInformation(SAI)datedMay30,1997.TheSAI
hasbeenfiledwiththeSecuritiesandExchangeCommission(SEC)andis
availablealongwithotherrelatedmaterialsontheSEC'sInternetWebsite
(http:/www.sec.gov).TheSAIisincorporatedhereinbyreference(legally
formsapartoftheprospectus).Forafreecopyofeitherdocument,
contactFidelityClientServicesat18008433001,oryourinvestment
professional.
INVESTMENTSINTHEFUNDSARENEITHERINSUREDNORGUARANTEEDBYTHEU.S.
GOVERNMENT,ANDTHERECANBENOASSURANCETHATAFUNDWILLMAINTAINA
STABLE$1.00SHAREPRICE.
MUTUALFUNDSHARESARENOTDEPOSITSOR
OBLIGATIONSOF,ORGUARANTEEDBY,ANY
DEPOSITORYINSTITUTION.SHARESARENOT
INSUREDBYTHEFDIC,FEDERALRESERVE
BOARDORANYOTHERAGENCY,ANDARESUBJECT
TOINVESTMENTRISKS,INCLUDINGPOSSIBLE
LOSSOFPRINCIPALAMOUNTINVESTED.
LIKEALLMUTUALFUNDS,THESE
SECURITIESHAVENOTBEENAPPROVEDOR
DISAPPROVEDBYTHESECURITIESAND
EXCHANGECOMMISSION,NORHASTHE
SECURITIESANDEXCHANGECOMMISSION
PASSEDUPONTHEACCURACYOR
ADEQUACYOFTHISPROSPECTUS.ANY
REPRESENTATIONTOTHECONTRARYISA
CRIMINALOFFENSE.
DMFIpro0597
TREASURYFUND
DAILYMONEYCLASS
(FORMERLYU.S.TREASURYPORTFOLIO
INITIALCLASS)
(fundnumber058)
PRIMEFUND
DAILYMONEYCLASS
(FORMERLYMONEYMARKETPORTFOLIO
INITIALCLASS)
(fundnumber083)
TAXEXEMPTFUND
DAILYMONEYCLASS
(FORMERLYDAILYTAXEXEMPTMONEYFUNDINITIALCLASS)
(fundnumber084)
PROSPECTUS
DATEDMAY30,1997
(FIDELITY_LOGO_GRAPHIC)82DEVONSHIRESTREET,BOSTON,MA02109
CONTENTS
KEYFACTSWHOMAYWANTTOINVEST
EXPENSESInitialClass'syearlyoperatingexpenses.
FINANCIALHIGHLIGHTSAsummaryofeachfund's
financialdata.
PERFORMANCE
THEFUNDSINDETAILCHARTERHoweachfundisorganized.
INVESTMENTPRINCIPLESANDRISKSEachfund'soverall
approachtoinvesting.
BREAKDOWNOFEXPENSESHowoperatingcostsare
calculatedandwhattheyinclude.
YOURACCOUNTTYPESOFACCOUNTSDifferentwaystosetupyour
79/101
12/24/2014
account,includingtaxshelteredretirementplans.
HOWTOBUYSHARESOpeninganaccountandmaking
additionalinvestments.
HOWTOSELLSHARESTakingmoneyoutandclosingyour
account.
INVESTORSERVICESServicestohelpyoumanageyour
account.
SHAREHOLDERANDACCOUNTPOLICIESDIVIDENDS,CAPITALGAINS,ANDTAXES
TRANSACTIONDETAILSSharepricecalculationsandthe
timingofpurchasesandredemptions.
EXCHANGERESTRICTIONS
KEYFACTS
WHOMAYWANTTOINVEST
Eachfundoffersinvestorsaconvenientwaytoinvestinaprofessionally
managedportfolioofmoneymarketinstruments.
Eachfundisdesignedforinvestorswhowouldliketoearncurrentincome
whilepreservingthevalueoftheirinvestment.
Therateofincomewillvaryfromdaytoday,generallyreflecting
shortterminterestrates.
Eachfundismanagedtokeepitssharepricestableat$1.00.TreasuryFund
offersanaddedmeasureofsafetywithitsfocusonU.S.Treasury
securities.
Thesefundsdonotconstituteabalancedinvestmentplan.However,because
theyemphasizestability,theycouldbewellsuitedforaportionofyour
investments.Eachfundoffersfreecheckwritingtogiveyoueasyaccessto
yourmoney.
TreasuryFundiscomposedoftwoclassesofshares.Bothclassesofthe
fundhaveacommoninvestmentobjectiveandinvestmentportfolio.Daily
MoneyClasssharesdonothaveasalescharge,butdopayadistribution
fee.AdvisorBClassshares(ClassB)donothaveafrontendsalescharge,
butdohaveacontingentdeferredsalescharge(CDSC)andpaya
distributionfeeandashareholderservicefee.ClassBsharesmaybe
purchaseddirectlyonlyinconnectionwiththeFidelityAdvisorSystematic
ExchangeProgram(theProgram)forpurposesofexchangingintoClassBof
theFidelityAdvisorFunds.Performanceofoneclassofsharesofthefund
maybedifferentfromtheperformanceofanotherclassofsharesbecauseof
differentsaleschargesandexpenses.Forexample,becauseDailyMoney
Classsharesdonothaveasalescharge,havealowerdistributionfeeand
donothaveashareholderservicefee,DailyMoneyClasssharesare
expectedtohaveahighertotalreturnthanClassBshares.Youmayobtain
moreinformationaboutClassBshares,whicharenotofferedthroughthis
prospectus,fromyourinvestmentprofessionalorbycallingFidelityClient
Servicesat18008433001.
EXPENSES
SHAREHOLDERTRANSACTIONEXPENSESarechargesyoumaypaywhenyoubuyor
sellDailyMoneyClasssharesofafund.
[DownloadTable]
MaximumsaleschargeonpurchasesandreinvesteddistributionsNone
MaximumdeferredsaleschargeNone
RedemptionfeeNone
ExchangefeeNone
ANNUALOPERATINGEXPENSESarepaidoutofeachfund'sassets.Eachfund
paysamanagementfeetoFidelityManagement&ResearchCompany(FMR).Each
fundalsoincursotherexpensesforservicessuchasmaintaining
shareholderrecordsandfurnishingshareholderstatementsandfinancial
reports.
12b1feesarepaidbytheDailyMoneyClassofeachfundtothe
distributorforservicesandexpensesinconnectionwiththedistribution
ofDailyMoneyClasssharesofeachfund.
DailyMoneyClass'sexpensesarefactoredintoitssharepriceordividends
andarenotchargeddirectlytoshareholderaccounts(see"Breakdownof
Expenses"onpage).
Thefollowingfiguresarebasedonhistoricalexpenses,adjustedtoreflect
currentfees,ofDailyMoneyClassofeachfundandarecalculatedasa
percentageofaveragenetassetsofDailyMoneyClassofeachfund.
TREASURYFUNDDAILYMONEYCLASS
Managementfee0.25
%
80/101
12/24/2014
12b1fee(DistributionFee)0.25
%
Otherexpenses(afterreimbursement)0.15
%
Totaloperatingexpenses0.65
%
PRIMEFUNDDAILYMONEYCLASS
Managementfee0.25
%
%
%
%
TAXEXEMPTFUNDDAILYMONEYCLASS
Managementfee0.25
%
%
%
%
EXPENSETABLEEXAMPLE:Youwouldpaythefollowingexpensesona$1,000
investmentinDailyMoneyClassshares,assuminga5%annualreturnand
fullredemptionattheendofeachtimeperiod:
1Year3510
YearsYearsYears
TreasuryFund$7$21$36$81
PrimeFund$7$21$36$81
TaxExemptFund$7$21$36$81
THESEEXAMPLESILLUSTRATETHEEFFECTOFEXPENSES,BUTARENOTMEANTTO
SUGGESTACTUALOREXPECTEDCOSTSORRETURNS,ALLOFWHICHMAYVARY.
FMRhasvoluntarilyagreedtoreimburseDailyMoneyClassofeachfundto
theextentthattotaloperatingexpensesexceed0.65%ofitsaveragenet
assets.Iftheseagreementswerenotineffect,otherexpensesandtotal
operatingexpenses,asapercentageofaveragenetassets,ofDailyMoney
Classofeachfundwouldhavebeen,0.19%and0.69%forTreasuryFund;
0.28%and0.78%forPrimeFund;and0.25%and0.75%forTaxExemptFund.
Expenseseligibleforreimbursementdonotincludeinterest,taxes,
brokeragecommissions,andextraordinaryexpenses.
FINANCIALHIGHLIGHTS
ThefinancialhighlightstablesthatfollowforTreasuryFundandPrime
FundhavebeenauditedbyCoopers&LybrandL.L.P.,independent
accountants.ThefinancialhighlightstablethatfollowsforTaxExempt
FundhasbeenauditedbyPriceWaterhouseLLP.,independentaccountants.
Thefunds'financialhighlights,financialstatements,andreportsofthe
auditorsareincludedinthefunds'AnnualReport,andareincorporatedby
referenceinto(arelegallyapartof)thefunds'SAI.ContactFidelity
ClientServices(ClientServices)oryourinvestmentprofessionalfora
freecopyofanAnnualReportortheSAI.
TREASURYFUNDDAILYMONEYCLASS
Ratios
YearsendedJuly311996A1996199519941993199219911990198919881987
Netassetvalue,$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
beginningofperiod
Incomefrom
InvestmentOperations
Netinterestincome.012.049.049.029.027.042.065.079.083.063.057
LessDistributions
81/101
12/24/2014
Fromnetinterest(.012)(.049)(.049)(.029)(.027)(.042)(.065)(.079)(.083)(.063)(.057)
income
Netassetvalue,
endof$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
period
TotalreturnB1.19%5.06%5.02%2.89%2.78%4.25%6.69%8.24%8.64%6.45%5.81%
Netassets,endof$1,801$1,801$1,828$2,025$2,949$3,094$1,702$1,177$994$320$240
period
(Inmillions)
Ratioofexpensesto.65%C,.65%C.65%C.60%.57%.59%.59%.59%.64%.64%.58%
averageD
netassets
Ratioofnetinterest4.66%4.94%4.89%2.81%2.73%4.14%6.42%7.91%8.47%6.26%5.67%
incometoaveragenetD
assets
BTOTALRETURNSFORPERIODSOFLESSTHANONEYEARARENOTANNUALIZED.TOTAL
RETURNSWOULDHAVEBEENLOWERHADCERTAINEXPENSESNOTBEENREDUCEDDURING
THEPERIODSSHOWN.
BEENHIGHER.
DANNUALIZED
PRIMEFUNDDAILYMONEYCLASS
Ratios
YearsendedJuly311996A1996199519941993199219911990198919881987
Netassetvalue,$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
beginningofperiod
Incomefrom.012.050.050.029.028.041.067.080.085.066.057
Netinterestincome
LessDistributions(.012)(.050)(.050)(.029)(.028)(.041)(.067)(.080)(.085)(.066)(.057)
Fromnetinterest
income
Netassetvalue,
endof$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
period
TotalreturnB1.22%5.13%5.16%2.98%2.82%4.21%6.90%8.34%8.81%6.81%5.87%
Netassets,endof$2,663$2,581$2,139$1,525$1,451$1,531$1,714$1,350$894$561$441
period
(Inmillions)
Ratioofexpensesto.65%C,.65%C.65%C.65%C.61%.59%.60%.61%.64%C.66%.62%
averageD
netassets
Ratioofnetinterest4.85%5.00%5.11%2.96%2.76%4.19%6.61%7.99%8.56%6.57%5.78%
incomeD
toaveragenetassets
BTOTALRETURNSFORPERIODSOFLESSTHANONEYEARARENOTANNUALIZED.TOTAL
RETURNSWOULDHAVEBEENLOWERHADCERTAINEXPENSESNOTBEENREDUCEDDURING
THEPERIODSSHOWN.
BEENHIGHER.
DANNUALIZED
TAXEXEMPTFUNDDAILYMONEYCLASS
Ratios
YearsendedOctober1996199519941993199219911990198919881987
31
Netassetvalue,$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
beginningofperiod
Incomefrom.030.033.022.021.029.044.053.056.045.039
Netinterestincome
LessDistributions(.030)(.033)(.022)(.021)(.029)(.044)(.053)(.056)(.045)(.039)
82/101
12/24/2014
Fromnetinterest
income
Netassetvalue,endof$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000$1.000
period
TotalreturnA3.02%3.36%2.21%2.11%2.93%4.46%5.38%5.72%4.55%3.93%
Netassets,endof$500,09$559,17$454,25$538,75$484,99$304,14$259,38$203,51$212,02$288,27
period4396971399
(000omitted)
Ratioofexpensesto.65%B.65%B.65%B.61%.63%.65%B.65%B.64%B.70%B.63%
average
netassets
Ratioofnetinterest2.98%3.31%2.17%2.09%2.86%4.29%5.32%5.64%4.37%3.87%
incometoaveragenet
assets
ATOTALRETURNSWOULDHAVEBEENLOWERHADCERTAINEXPENSESNOTBEENREDUCED
DURINGTHEPERIODSSHOWN.
BFMRAGREEDTOREIMBURSEAPORTIONOFTHECLASS'SEXPENSESDURINGTHE
BEENHIGHER.
PERFORMANCE
MoneymarketfundperformancecanbemeasuredasTOTALRETURNorYIELD.
EXPLANATIONOFTERMS
TOTALRETURNisthechangeinvalueofaninvestmentoveragivenperiod,
assumingreinvestmentofanydividendsandcapitalgains.ACUMULATIVE
TOTALRETURNreflectsactualperformanceoverastatedperiodoftime.An
AVERAGEANNUALTOTALRETURNisahypotheticalrateofreturnthat,if
achievedannually,wouldhaveproducedthesamecumulativetotalreturnif
performancehadbeenconstantovertheentireperiod.Averageannualtotal
returnssmoothoutvariationsinperformance;theyarenotthesameas
actualyearbyyearresults.
YIELDreferstotheincomegeneratedbyaninvestmentinafundovera
givenperiodoftime,expressedasanannualpercentagerate.Whenayield
assumesthatincomeearnedisreinvested,itiscalledanEFFECTIVEYIELD.
ATAXEQUIVALENTYIELDshowswhataninvestorwouldhavetoearnbefore
taxestoequalataxfreeyield.
SEVENDAYYIELDillustratestheincomeearnedbyaninvestmentinamoney
marketfundoverarecentsevendayperiod.Sincemoneymarketfunds
maintainastable$1.00shareprice,currentsevendayyieldsarethemost
commonillustrationofmoneymarketfundperformance.
Thefunds'performanceandholdingsaredetailedtwiceayearinfinancial
reports,whicharesenttoallshareholders.Forcurrentperformancecall
ClientServicesat18008433001.
THEFUNDSINDETAIL
CHARTER
EACHFUNDISAMUTUALFUND:aninvestmentthatpoolsshareholders'money
andinvestsittowardaspecifiedgoal.Eachfundisadiversifiedfundof
FidelityNewburyStreetTrust(formerlyDailyTaxExemptMoneyFund),an
trustDecember30,1991.Thereisaremotepossibilitythatonefundmight
becomeliableforamisstatementintheprospectusaboutanotherfund.
EACHFUNDISGOVERNEDBYABOARDOFTRUSTEESwhichisresponsiblefor
protectingtheinterestsofshareholders.Thetrusteesareexperienced
executiveswhomeetthroughouttheyeartooverseethefunds'activities,
reviewcontractualarrangementswithcompaniesthatprovideservicestothe
funds,andreviewthefunds'performance.Themajorityoftrusteesarenot
otherwiseaffiliatedwithFidelity.
THEFUNDSMAYHOLDSPECIALMEETINGSANDMAILPROXYMATERIALS.These
meetingsmaybecalledtoelectorremovetrustees,changefundamental
policies,approveamanagementcontract,orforotherpurposes.
Shareholdersnotattendingthesemeetingsareencouragedtovotebyproxy.
Thetransferagentwillmailproxymaterialsinadvance,includingavoting
cardandinformationabouttheproposalstobevotedon.Thenumberof
votesyouareentitledtoisbaseduponthedollarvalueofyour
investment.
Separatevotesaretakenbyeachclassofshares,fund,ortrust,ifa
matteraffectsjustthatclassofshares,fund,ortrust,respectively.
FMRANDITSAFFILIATES
FidelityInvestmentsisoneofthelargestinvestmentmanagement
organizationsintheUnitedStatesandhasitsprincipalbusinessaddress
at82DevonshireStreet,Boston,Massachusetts02109.Itincludesanumber
ofdifferentsubsidiariesanddivisionswhichprovideavarietyof
financialservicesandproducts.ThefundsemployvariousFidelity
companiestoperformactivitiesrequiredfortheiroperation.
ThefundsaremanagedbyFMR,whichhandlestheirbusinessaffairs.FMR
TexasInc.(FMRTexas),locatedinIrving,Texas,hasprimary
responsibilityforprovidinginvestmentmanagementservices.
AsofMarch31,1997,FMRadvisedfundshavingapproximately30million
shareholderaccountswithatotalvalueofmorethan$438billion.
Fidelityinvestmentpersonnelmayinvestinsecuritiesfortheirown
83/101
12/24/2014
accountspursuanttoacodeofethicsthatestablishesproceduresfor
personalinvestingandrestrictscertaintransactions.
FidelityDistributorsCorporation(FDC)distributesandmarketsFidelity's
fundsandservices.FidelityInvestmentsInstitutionalOperationsCompany,
Inc.(FIIOC)performstransferagentservicingfunctionsfortheDaily
MoneyClasssharesofeachfund.
FMRCorp.istheultimateparentcompanyofFMRandFMRTexas.Membersof
theEdwardC.Johnson3dfamilyarethepredominantownersofaclassof
sharesofcommonstockrepresentingapproximately49%ofthevotingpower
ofFMRCorp.UndertheInvestmentCompanyActof1940(the1940Act),
controlofacompanyispresumedwhereoneindividualorgroupof
individualsownsmorethan25%ofthevotingstockofthatcompany;
therefore,theJohnsonfamilymaybedeemedunderthe1940Acttoforma
controllinggroupwithrespecttoFMRCorp.
UMBBank,n.a.(UMB)isTaxExemptFund'stransferagent,althoughit
employsFIIOCtoperformthesefunctionsforDailyMoneyClassofthefund.
UMBislocatedat1010GrandAvenue,KansasCity,Missouri.
Tocarryoutthefunds'transactions,FMRmayuseitsbrokerdealer
affiliatesandotherfirmsthatsellfundshares,providedthatafund
receivesservicesandcommissionratescomparabletothoseofother
brokerdealers.
INVESTMENTPRINCIPLESANDRISKS
EACHFUND'SINVESTMENTAPPROACH
Whenyousellyourshares,theyshouldbeworththesameamountaswhenyou
boughtthem.Ofcourse,thereisnoguaranteethatthefundswillmaintain
astable$1.00shareprice.Thefundsfollowindustrystandardguidelines
onthequality,maturity,anddiversificationoftheirinvestments,which
aredesignedtohelpmaintainastable$1.00shareprice.Thefundswill
purchaseonlyhighqualitysecuritiesthatFMRbelievespresentminimal
creditrisksandwillobservematurityrestrictionsonsecuritiestheybuy.
Ingeneral,securitieswithlongermaturitiesaremorevulnerabletoprice
changes,althoughtheymayprovidehigheryields.Itispossiblethata
majorchangeininterestratesoradefaultonthefunds'investmentscould
causetheirshareprices(andthevalueofyourinvestment)tochange.
Thefundsearnincomeatcurrentmoneymarketrates.Eachfundstresses
preservationofcapital,liquidity,andincome(taxfreeincomeinthecase
ofTaxExemptFund)anddoesnotseekthehigheryieldsorcapital
appreciationthatmoreaggressiveinvestmentsmayprovide.Eachfund's
yieldwillvaryfromdaytodayandgenerallyreflectscurrentshortterm
interestratesandothermarketconditions.Itisimportanttonotethat
neitherthefundsnortheiryieldsareguaranteedbytheU.S.Government.
TREASURYFUNDseekstoobtainashighalevelofcurrentincomeasis
consistentwiththepreservationofcapitalandliquidity.
ThefundinvestsonlyinU.S.Treasurysecuritiesandrepurchaseagreements
forthesesecurities.Thefunddoesnotenterintoreverserepurchase
agreements.
PRIMEFUNDseekstoobtainashighalevelofcurrentincomeasis
consistentwiththepreservationofcapitalandliquidity.
ThefundinvestsonlyinU.S.dollardenominatedmoneymarketsecuritiesof
domesticandforeignissuersratedinthehighestratingcategorybyat
leasttwonationallyrecognizedratingservices,U.S.Government
securities,andrepurchaseagreements.Thefundalsomayenterintoreverse
repurchaseagreements.
TAXEXEMPTFUNDseekstoprovideindividualandinstitutionalinvestors
Thefundinvestsinhighqualitymunicipalmoneymarketsecuritiesofall
types.Thefundnormallyinvestssothatatleast80%ofitsincome
distributionsisexemptfromfederalincometax.Thefunddoesnot
currentlyintendtopurchasemunicipalsecuritieswhoseinterestissubject
tothefederalalternativeminimumtax.
FMRnormallyinveststhefund'sassetsaccordingtoitsinvestmentstrategy
anddoesnotexpecttoinvestinfederallytaxableobligations.Thefund
alsoreservestherighttoholdasubstantialamountofuninvestedcashor
toinvestmorethannormallypermittedinfederallytaxableobligationsfor
temporary,defensivepurposes.
SECURITIESANDINVESTMENTPRACTICES
Thefollowingpagescontainmoredetailedinformationabouttypesof
instrumentsinwhichafundmayinvest,strategiesFMRmayemployin
pursuitofafund'sinvestmentobjective,andasummaryofrelatedrisks.
Anyrestrictionslistedsupplementthosediscussedearlierinthissection.
Acompletelistingofeachfund'slimitationsandmoredetailedinformation
abouteachfund'sinvestmentsarecontainedinthefunds'SAI.Policiesand
limitationsareconsideredatthetimeofpurchase;thesaleofinstruments
isnotrequiredintheeventofasubsequentchangeincircumstances.
FMRmaynotbuyalloftheseinstrumentsoruseallofthesetechniques
unlessitbelievesthattheyareconsistentwithafund'sinvestment
objectiveandpoliciesandthatdoingsowillhelpafundachieveitsgoal.
Fundholdingsaredetailedineachfund'sfinancialreports,whicharesent
toshareholderstwiceayear.ForafreeSAIorfinancialreport,call
ClientServicesat18008433001oryourinvestmentprofessional.
MONEYMARKETSECURITIESarehighquality,shortterminstrumentsissuedby
84/101
12/24/2014
theU.S.Government,corporations,financialinstitutions,municipalities,
localandstategovernments,andotherentities.Thesesecuritiesmaycarry
fixed,variable,orfloatinginterestrates.Somemoneymarketsecurities
employatrustorsimilarstructuretomodifythematurity,price
characteristics,orqualityoffinancialassetssothattheyareeligible
investmentsformoneymarketfunds.Ifthestructuredoesnotperformas
intended,adversetaxorinvestmentconsequencesmayresult.
U.S.TREASURYMONEYMARKETSECURITIESareshorttermdebtobligations
issuedbytheU.S.Treasuryandincludebills,notes,andbonds.U.S.
TreasurysecuritiesarebackedbythefullfaithandcreditoftheUnited
States.
U.S.GOVERNMENTMONEYMARKETSECURITIESareshorttermdebtinstruments
issuedorguaranteedbytheU.S.Treasuryorbyanagencyor
instrumentalityoftheU.S.Government.NotallU.S.Governmentsecurities
arebackedbythefullfaithandcreditoftheUnitedStates.Forexample,
U.S.GovernmentsecuritiessuchasthoseissuedbyFannieMaearesupported
bytheinstrumentality'srighttoborrowmoneyfromtheU.S.Treasuryunder
certaincircumstances.OtherU.S.Governmentsecurities,suchasthose
issuedbytheFederalFarmCreditBanksFundingCorporation,aresupported
onlybythecreditoftheentitythatissuedthem.
MUNICIPALSECURITIESareissuedtoraisemoneyforavarietyofpublicor
privatepurposes,includinggeneralfinancingforstateandlocal
governments,orfinancingforspecificprojectsorpublicfacilities.They
maybefullyorpartiallybackedbythelocalgovernment,orbythecredit
ofaprivateissuerorthecurrentoranticipatedrevenuesfromspecific
projectsorassets.Becausemanymunicipalsecuritiesareissuedtofinance
similartypesofprojects,especiallythoserelatingtoeducation,health
care,housing,transportation,andutilities,themunicipalmarketscanbe
affectedbyconditionsinthosesectors.Inaddition,allmunicipal
securitiesmaybeaffectedbyuncertaintiesregardingtheirtaxstatus,
legislativechanges,ortherightsofmunicipalsecuritiesholders.A
municipalsecuritymaybeowneddirectlyorthroughaparticipation
interest.
CREDITANDLIQUIDITYSUPPORT.Issuersmayemployvariousformsofcredit
andliquidityenhancement,includinglettersofcredit,guarantees,puts
anddemandfeatures,andinsurance,providedbyforeignordomestic
entitiessuchasbanksandotherfinancialinstitutions.Thesearrangements
exposeafundtothecreditriskoftheentityprovidingthecreditor
liquiditysupport.Changesinthecreditqualityoftheprovidercould
affectthevalueofthesecurityandafund'sshareprice.
FOREIGNEXPOSURE.Securitiesissuedbyforeignentities,includingforeign
governments,corporations,andbanks,andsecuritiesissuedbyU.S.
entitieswithsubstantialforeignoperationsmayinvolveadditionalrisks
andconsiderations.Likewise,securitiesforwhichforeignentitiesprovide
creditorliquiditysupportmayinvolvedifferentrisksthanthose
supportedbydomesticentities.Extensivepublicinformationaboutthe
foreignentitymaynotbeavailable,andunfavorablepolitical,economic,
orgovernmentaldevelopmentsintheforeigncountryinvolvedcouldaffect
therepaymentofprincipalorpaymentofinterest.
ASSETBACKEDSECURITIESincludeinterestsinpoolsofmortgages,loans,
receivables,orotherassets.Paymentofprincipalandinterestmaybe
largelydependentuponthecashflowsgeneratedbytheassetsbackingthe
securities.
VARIABLEANDFLOATINGRATESECURITIEShaveinterestratesthatare
periodicallyadjustedeitheratspecificintervalsorwheneverabenchmark
ratechanges.Theseinterestrateadjustmentsaredesignedtohelp
stabilizethesecurity'sprice.
STRIPPEDSECURITIESaretheseparateincomeorprincipalcomponentsofa
debtsecurity.Therisksassociatedwithstrippedsecuritiesaresimilarto
thoseofothermoneymarketsecurities,althoughstrippedsecuritiesmaybe
morevolatile.U.S.Treasurysecuritiesthathavebeenstrippedbya
FederalReserveBankareobligationsissuedbytheU.S.Treasury.
REPURCHASEAGREEMENTS.Inarepurchaseagreement,afundbuysasecurityat
onepriceandsimultaneouslyagreestosellitbackatahigherprice.
Delaysorlossescouldresultiftheotherpartytotheagreementdefaults
orbecomesinsolvent.
REVERSEREPURCHASEAGREEMENTS.Inareverserepurchaseagreement,afund
temporarilytransferspossessionofaportfolioinstrumenttoanotherparty
inreturnforcash.Thiscouldincreasetheriskoffluctuationinthe
fund'syieldorinthemarketvalueofitsassets.
OTHERMONEYMARKETSECURITIESmayincludecommercialpaper,certificatesof
deposit,bankers'acceptances,andtimedeposits.
MUNICIPALLEASEOBLIGATIONSareusedbymunicipalitiestoacquireland,
equipment,orfacilities.Ifthemunicipalitystopsmakingpaymentsor
transfersitsobligationstoaprivateentity,theobligationcouldlose
valueorbecometaxable.
OTHERMUNICIPALSECURITIESmayincludeobligationsofU.S.territoriesand
possessionssuchasGuam,theVirginIslands,andPuertoRico,andtheir
politicalsubdivisionsandpubliccorporations.
PUTFEATURESentitletheholdertoput(sellback)asecuritytotheissuer
oranotherparty.Inexchangeforthisbenefit,afundmayacceptalower
interestrate.Thecreditqualityoftheinvestmentmaybeaffectedbythe
creditworthinessoftheputprovider.Demandfeatures,standbycommitments,
85/101
12/24/2014
andtenderoptionsaretypesofputfeatures.
PRIVATEENTITIESmaybeinvolvedinsomemunicipalsecurities.Forexample,
industrialrevenuebondsarebackedbyprivateentities,andresource
recoverybondsofteninvolveprivatecorporations.Theviabilityofa
projectortaxincentivescouldaffectthevalueandcreditqualityof
thesesecurities.
ILLIQUIDANDRESTRICTEDSECURITIES.Someinvestmentsmaybedeterminedby
FMR,underthesupervisionoftheBoardofTrustees,tobeilliquid,which
meansthattheymaybedifficulttosellpromptlyatanacceptableprice.
Thesaleofsomeilliquidsecurities,andsomeothersecurities,maybe
subjecttolegalrestrictions.Difficultyinsellingsecuritiesmayresult
inalossormaybecostlytoafund.
RESTRICTIONS:Afundmaynotpurchaseasecurityif,asaresult,morethan
10%ofitsassetswouldbeinvestedinilliquidsecurities.
WHENISSUEDANDFORWARDPURCHASEORSALETRANSACTIONSaretradingpractices
inwhichpaymentanddeliveryforthesecuritytakeplaceatalaterdate
thaniscustomaryforthattypeofsecurity.Themarketvalueofthe
securitycouldchangeduringthisperiod.
FINANCIALSERVICESINDUSTRY.Companiesinthefinancialservicesindustry
aresubjecttovariousrisksrelatedtothatindustry,suchasgovernment
regulation,changesininterestrates,andexposureonloans,including
loanstoforeignborrowers.Ifafundinvestssubstantiallyinthis
industry,itsperformancemaybeaffectedbyconditionsaffectingthe
industry.
RESTRICTIONS:PrimeFundwillinvestmorethan25%ofitstotalassetsin
thefinancialservicesindustry.
CASHMANAGEMENT.Afundmayinvestinmoneymarketsecurities,in
repurchaseagreements,andinamoneymarketfundavailableonlytofunds
andaccountsmanagedbyFMRoritsaffiliates,whosegoalistoseekahigh
levelofcurrentincome(exemptfromfederalincometaxinthecaseofa
municipalmoneymarketfund)whilemaintainingastable$1.00shareprice.
Amajorchangeininterestratesoradefaultonthemoneymarketfund's
investmentscouldcauseitssharepricetochange.
RESTRICTIONS:TaxExemptFundwillnotinvestinamoneymarketfundand
doesnotcurrentlyintendtoinvestinrepurchaseagreements.TreasuryFund
andPrimeFunddonotcurrentlyintendtoinvestinamoneymarketfund.
DIVERSIFICATION.Diversifyingafund'sinvestmentportfoliocanreducethe
risksofinvesting.Thismayincludelimitingtheamountofmoneyinvested
inanyoneissueror,onabroaderscale,inanyoneindustryortypeof
project.Economic,business,orpoliticalchangescanaffectallsecurities
ofasimilartype.
RESTRICTIONS:PrimeFundmaynotinvestmorethan5%ofitstotalassetsin
anyoneissuer,exceptthatitmayinvestupto25%ofitstotalassetsin
thehighestqualitysecuritiesofasingleissuerforuptothreebusiness
days.
Withrespectto75%ofitstotalassets,TaxExemptFundmaynotpurchasea
securityif,asaresult,morethan5%ofitstotalassetswouldbe
investedinthesecuritiesofasingleissuer.
TheselimitationsdonotapplytoU.S.Governmentsecuritiesorto
securitiesofotherinvestmentcompanies.
TaxExemptFundmayinvestmorethan25%ofitstotalassetsintaxfree
securitiesthatfinancesimilartypesofprojects.
BORROWING.AfundmayborrowfrombanksorfromotherfundsadvisedbyFMR,
orthroughreverserepurchaseagreements,andmaymakeadditional
investmentswhileborrowingsareoutstanding.
RESTRICTIONS:PrimeFundmayborrowonlyfortemporaryoremergency
purposes,orengageinreverserepurchaseagreements,butnotinanamount
exceeding331/3%ofitstotalassets.EachofTreasuryFundandTaxExempt
Fundmayborrowonlyfortemporaryoremergencypurposes,butnotinan
amountexceeding331/3%ofitstotalassets.
LENDING.AfundmaylendmoneytootherfundsadvisedbyFMR.
RESTRICTIONS:Loans,intheaggregate,maynotexceed331/3%ofafund's
totalassets.TreasuryFundandTaxExemptFunddonotlendmoneytoother
fundsadvisedbyFMR.
FUNDAMENTALINVESTMENTPOLICIESANDRESTRICTIONS
Someofthepoliciesandrestrictionsdiscussedontheprecedingpagesare
fundamental,thatis,subjecttochangeonlybyshareholderapproval.The
followingparagraphsrestateallthosethatarefundamental.Allpolicies
statedthroughoutthisprospectus,otherthanthoseidentifiedinthe
followingparagraphs,canbechangedwithoutshareholderapproval.
EachofTreasuryFundandPrimeFundseekstoobtainashighalevelof
liquidity.
TaxExemptFundseekstoprovideindividualandinstitutionalinvestors
Thefundnormallyinvestssothatatleast80%ofitsincomedistributions
isfreefromfederalincometax.
Withrespectto75%ofitstotalassets,TaxExemptFundmaynotpurchasea
securityif,asaresult,morethan5%ofitstotalassetswouldbe
investedinthesecuritiesofasingleissuer.Thislimitationdoesnot
applytoU.S.Governmentsecuritiesortosecuritiesofotherinvestment
86/101
12/24/2014
companies.
PrimeFundwillinvestmorethan25%ofitstotalassetsinthefinancial
servicesindustry.
PrimeFundmayborrowonlyfortemporaryoremergencypurposes,orengage
inreverserepurchaseagreements,butnotinanamountexceeding331/3%of
itstotalassets.TaxExemptFundmayborrowonlyfortemporaryor
emergencypurposes,butnotinanamountexceeding331/3%ofitstotal
assets.
Loans,intheaggregate,maynotexceed331/3%ofafund'stotalassets.
BREAKDOWNOFEXPENSES
Likeallmutualfunds,thefundspayfeesrelatedtotheirdaily
operations.Expensespaidoutofeachclass'sassetsarereflectedinthat
class'ssharepriceordividends;theyareneitherbilleddirectlyto
shareholdersnordeductedfromshareholderaccounts.
EachfundpaysaMANAGEMENTFEEtoFMRformanagingitsinvestmentsand
businessaffairs.FMRinturnpaysfeestoanaffiliatewhoprovides
assistancewiththeseservices.EachfundalsopaysOTHEREXPENSES,which
areexplainedonpage.
MANAGEMENTFEE
EachfundpaysFMRamonthlymanagementfeeatanannualrateof0.25%of
itsaveragenetassets.
FMRTexasisthefunds'subadviserandhasprimaryresponsibilityfor
managingitsinvestments.FMRisresponsibleforprovidingothermanagement
services.FMRpaysFMRTexas50%ofitsmanagementfee(beforeexpense
reimbursements)forFMRTeasesservices.FMRpaidFMRTexasfeesequalto
0.11%(annualized)ofTreasuryFund'sand0.14%(annualized)ofPrime
Fund'saveragenetassetsforthethreemonthperiodendedOctober31,1996
butafterpaymentsmadebyFMRpursuanttothefunds'Distributionand
ServicePlans.FMRpaidFMRTexasafeeequalto0.12%ofTaxExemptFund's
averagenetassetsforthefiscalyearendedOctober31,1996.
OTHEREXPENSES
Whilethemanagementfeeisasignificantcomponentofeachfund'sannual
operatingcosts,thefundshaveotherexpensesaswell.
FIIOCperformscertaintransferagency,dividenddisbursingandshareholder
servicesforDailyMoneyClasssharesofTreasuryFundandPrimeFund(the
TaxableFunds).FidelityServiceCompany,Inc.(FSC)calculatestheNAVand
dividendsforeachTaxableFund,andmaintainsthegeneralaccounting
recordsforeachTaxableFund.
ForthethreemonthperiodendedOctober31,1996,feespaidbyDailyMoney
ClasssharesofTreasuryFundandPrimeFundtoFIIOCamountedto0.17%
(annualized)and0.26%(annualized)ofitsaveragenetassets,
respectively,andfeespaidbyeachTaxableFundtoFSCamountedto0.01%
(annualized)ofitsaveragenetassets.
UMBhasenteredintoasubarrangementwithFIIOC.FIIOCperformstransfer
agency,dividenddisbursingandshareholderservicesfortheDailyMoney
ClasssharesofTaxExemptFund.UMBhasalsoenteredintoa
subarrangementwithFSC.FSCcalculatestheNAVanddividendsforDaily
MoneyClasssharesofTaxExemptFund,andmaintainsthefund'sgeneral
accountingrecords.AllofthefeesarepaidtoFIIOCandFSCbyUMB,which
isreimbursedbyDailyMoneyClassorthefund,asappropriate,forsuch
payments.
ForthefiscalyearendedOctober31,1996,feespaidbyUMBtoFIIOCon
behalfofDailyMoneyClassofTaxExemptFundamountedto0.18%ofaverage
netassets,andfeespaidbyUMBtoFSConbehalfofthefundamountedto
0.02%ofitsaveragenetassets.
DailyMoneyClassofeachfundhasadoptedaDISTRIBUTIONANDSERVICEPLAN.
UnderthePlans,DailyMoneyClassofeachfundisauthorizedtopayFDCa
monthlydistributionfeeascompensationforitsservicesandexpensesin
connectionwiththedistributionofDailyMoneyClassshares.DailyMoney
ClassofeachfundcurrentlypaysFDCamonthlydistributionfeeatan
annualrateof0.25%ofitsaveragenetassetsthroughoutthemonth.FDC
maycompensateintermediariesthatprovideshareholdersupportservices,
engageinthesaleofDailyMoneyClass'ssharesorpaydistribution
expensesatanannualrateofupto0.25%ofaveragenetassetsthey
maintain.
TheDailyMoneyClassPlansspecificallyrecognizethatFMRmaymake
toFDCforexpensesincurredinconnectionwiththedistributionofDaily
MoneyClassshares,includingpaymentsmadetointermediariesthatprovide
shareholdersupportservicesorengageinthesaleofDailyMoneyClass
shares.TheBoardofTrusteesofeachfundhasauthorizedsuchpaymentsfor
certainintermediarieswhomaybeeligibletobecompensatedatprior
compensationamountsexceeding0.25%(upto0.40%ofaveragenetassets
theymaintain)untilJanuary1,1998.
IndependentoftheDailyMoneyClassPlans,intermediariesthatmaintainan
averagebalanceof$10millionormoreinasingleomnibusaccountmay
receiveanadditionalrecordkeepingfeeofupto0.15%oftheaveragenet
assetstheymaintain.TherecordkeepingfeewillbepaidbyFMRorits
affiliates,notbythefund,andwillnotbepaidfordistribution
services.
Intotal,intermediariesmayreceiveannualcompensationofupto0.40%of
theaveragenetassetstheymaintain.
Eachfundalsopaysotherexpenses,suchaslegal,audit,andcustodian
87/101
12/24/2014
fees;insomeinstances,proxysolicitationcosts;andthecompensationof
trusteeswhoarenotaffiliatedwithFidelity.
YOURACCOUNT
TYPESOFACCOUNTS
Ifyouinvestthroughaninvestmentprofessional,yourinvestment
professional,includingabrokerdealerorfinancialinstitution,may
chargeyouatransactionfeewithrespecttothepurchaseandsaleoffund
shares.Readyourinvestmentprofessional'sprogrammaterialsin
conjunctionwiththisprospectusforadditionalservicefeaturesorfees
thatmayapply.Certainfeaturesofthefunds,suchasminimuminitialor
subsequentinvestmentamounts,maybemodified.
Thedifferentwaystosetup(register)youraccountwithFidelityare
listedatright.
Theaccountguidelinesthatfollowmaynotapplytocertainfundsorto
certainretirementaccounts.Forinstance,municipalfundsarenot
availableforpurchaseinretirementaccounts.Ifyouareinvestingthrough
aretirementaccountorifyouremployeroffersafundthrougharetirement
program,youmaybesubjecttoadditionalfees.Formoreinformation,
pleaserefertoyourprogrammaterials,contactyouremployer,orcallyour
retirementbenefitsnumberorClientServicesat18008433001oryour
investmentprofessionaldirectly,asappropriate.
WAYSTOSETUPYOURACCOUNT
INDIVIDUALORJOINTTENANT
FORYOURGENERALINVESTMENTNEEDS
Individualaccountsareownedbyoneperson.Jointaccountscanhavetwoor
moreowners(tenants).
RETIREMENT(THEFOLLOWINGOPTIONSAREAVAILABLEONLYFORTAXABLEFUNDS)
TOSHELTERYOURRETIREMENTSAVINGSFROMTAXES
Retirementplansallowindividualstoshelterinvestmentincomeand
capitalgainsfromcurrenttaxes.Inaddition,contributionstothese
accountsmaybetaxdeductible.Retirementaccountsrequirespecial
applicationsandtypicallyhavelowerminimums.
(solidbullet)INDIVIDUALRETIREMENTACCOUNTS(IRAS)allowanyoneoflegal
ageunder701/2withearnedincometoinvestupto$2,000pertaxyear.
Individualscanalsoinvestinaspouse'sIRAifthespousehasearned
incomeoflessthan$250.
(solidbullet)ROLLOVERIRASretainspecialtaxadvantagesforcertain
distributionsfromemployersponsoredretirementplans.
(solidbullet)SIMPLIFIEDEMPLOYEEPENSIONPLANS(SEPIRAS)providesmall
businessownersorthosewithselfemployedincome(andtheireligible
employees)withmanyofthesameadvantagesasaKeogh,butwithfewer
administrativerequirements.
(solidbullet)401(K)PLANSallowemployeesofcorporationsofallsizesto
contributeapercentageoftheirwagesonataxdeferredbasis.These
accountsneedtobeestablishedbythetrusteeoftheplan.
GIFTSORTRANSFERSTOAMINOR(UGMA,UTMA)
TOINVESTFORACHILD'SEDUCATIONOROTHERFUTURENEEDS
Thesecustodialaccountsprovideawaytogivemoneytoachildandobtain
taxbenefits.Anindividualcangiveupto$10,000ayearperchildwithout
payingfederalgifttax.Dependingonstatelaws,youcansetupa
custodialaccountundertheUniformGiftstoMinorsAct(UGMA)orthe
UniformTransferstoMinorsAct(UTMA).Contactyourinvestment
professional.
TRUST
FORMONEYBEINGINVESTEDBYATRUST
Thetrustmustbeestablishedbeforeanaccountcanbeopened.
BUSINESSORORGANIZATION
FORINVESTMENTNEEDSOFCORPORATIONS,ASSOCIATIONS,PARTNERSHIPS,OROTHER
GROUPS
Contactyourinvestmentprofessional.
HOWTOBUYSHARES
EACHCLASS'SSHAREPRICE,calledNAV,iscalculatedeverybusinessday.The
fundsaremanagedtokeepsharepricesstableat$1.00.
SharesarepurchasedatthenextNAVcalculatedafteryourorderis
receivedandaccepted.NAVisnormallycalculatedatthetimesindicatedin
thetablebelow.
NAVCalculationTimes
Fund(EasternTime)
TreasuryFund2:00p.m.and4:00p.m.
PrimeFund2:00p.m.and4:00p.m.
TaxExemptFund12:00noonand4:00p.m.
Itistheresponsibilityofyourinvestmentprofessionaltotransmityour
ordertobuysharestoFidelitybeforethecloseofbusinessonthedayyou
placeyourorder.
SharecertificatesarenotavailableforDailyMoneyClass.
IFYOUARENEWTOFIDELITY,aninitialinvestmentmustbeprecededor
accompaniedbyacompleted,signedapplication,whichshouldbeforwarded
to:
88/101
12/24/2014
FidelityInvestments
P.O.Box770002
Cincinnati,OH452770081
IFYOUALREADYHAVEMONEYINVESTEDINAFIDELITYFUND,youcan:
(smallsolidbullet)Mailanaccountapplicationwithacheck,
(smallsolidbullet)Placeanorderandwiremoneyintoyouraccount,
(smallsolidbullet)OpenyouraccountbyexchangingfromClassAorClass
TofaFidelityAdvisorfundorfromanotherFidelityfund,or
(smallsolidbullet)ContactyourinvestmentprofessionalorcallFidelity
ClientServices.
BYMAIL.Youoryourinvestmentprofessionalmustsendacheckpayableto
thefundinwhichyouplantoinvest.Whenmakingsubsequentinvestmentsby
check,pleasewriteyourfundaccountnumberonthecheck.Allinvestments
bycheckshouldbesenttotheaboveaddress.
BYWIRE.Youmustsignupforthewirefeaturebeforeusingit.Forwiring
informationandinstructions,youshouldcalltheinvestmentprofessional
throughwhichyoutradeorifyoutradedirectlythroughFidelity,call
ClientServices.Thereisnofeeimposedbythefundsforwirepurchases.
However,ifyoubuysharesthroughaninvestmentprofessional,the
investmentprofessionalmayimposeafeeforwirepurchases.
FidelityClientServices:
Nationwide18008433001
Shareholdersofrecordasofthetimesindicatedinthetablebelowwillbe
entitledtodividendsdeclaredthatday.
FundDividend
Times
(Eastern
Time)
TreasuryFund2:00p.m.
PrimeFund2:00p.m.
TaxExemptFund12:00noon
Sharespurchasedafterthetimesindicatedinthetableabovewillbeginto
earnincomedividendsonthefollowingbusinessday.
Yourwiremustbereceivedandacceptedbythetransferagentatthe
applicablefund'sdesignatedwirebank.
Youareadvisedtowirefundsasearlyinthedayaspossible,andto
provideadvancenoticetoClientServicesforlargepurchases.
MINIMUMINVESTMENTS
TOOPENANACCOUNT$1,000
ForFidelityIRA,RolloverIRA,SEPIRAandKeoghaccounts$500
TOADDTOANACCOUNT$250
ForFidelityIRA,RolloverIRA,SEPIRAandKeoghaccounts$100
Throughregularinvestmentplans*$100
MINIMUMBALANCE$500
*FORMOREINFORMATIONABOUTREGULARINVESTMENTPLANS,PLEASEREFERTO
"INVESTORSERVICES,"PAGE.
HOWTOSELLSHARES
Youcanarrangetotakemoneyoutofyourfundaccountatanytimeby
selling(redeeming)someorallofyourshares.Yourshareswillbesoldat
thenextNAVcalculatedafteryourorderisreceivedandaccepted.NAVis
normallycalculatedatthetimesindicatedinthetableonpage.
Itistheresponsibilityofyourinvestmentprofessionaltotransmityour
ordertoredeemsharestoFidelitybeforethecloseofbusinessontheday
youplaceyourorder.
TOSELLSHARESINANONRETIREMENTACCOUNT,youmayuseanyofthemethods
describedonthesetwopages.
TOSELLSHARESINAFIDELITYRETIREMENTACCOUNT,yourrequestmustbemade
inwriting,exceptforexchangestoClassAorClassTsharesofaFidelity
AdvisorfundorsharesofotherFidelityfunds,whichcanberequestedby
phoneorinwriting.
IFYOUARESELLINGSOMEBUTNOTALLOFYOURSHARES,pleaseleaveatleast
$500worthofsharesintheaccounttokeepitopen.
BYTELEPHONE.RedemptionrequestsmaybemadebycallingClientServicesat
18008433001.
BYMAIL.Sendaletterofinstructionwithsignatureguarantee(s)tothe
addressonpage.Thelettershouldspecifythenameofthefund,the
numberofsharestobesold,name,accountnumbers,address,andshould
includetheadditionalrequirementslistedbelowthatapplytoeach
particularaccount.
TYPEOFREGISTRATIONREQUIREMENTS
Individual,JointTenants,Letterofinstructionsignedbyallperson(s)
SoleProprietorship,Custodial,(UniformGiftsorrequiredtosignfortheaccountexactlyasitis
TransferstoMinorsAct),GeneralPartnersregistered,accompaniedbysignature
guarantee(s).
89/101
12/24/2014
Corporations,AssociationsLetterofinstructionandacorporateresolution,
signedbyperson(s)requiredtosignforthe
accountaccompaniedbysignatureguarantee(s).
TrustsAletterofinstructionsignedbytheTrustee(s)with
signatureguarantee(s).(IftheTrustee'snameis
notregisteredontheaccount,alsoprovideacopy
ofthetrustdocument,certifiedwithinthelast60
days.)
Ifyoudonotfallintoanyoftheseregistrationcategories(i.e.,
executors,administrators,conservators,orguardians)youshouldcallyour
investmentprofessionalorFidelityClientServicesforfurther
instructions.
BYWIRE.RedemptionsmaybemadebycallingClientServicesat
18008433001.
YoumustdesignateonyouraccountapplicationtheU.S.commercialbank
account(s)intowhichyouwishtheredemptionproceedstobedeposited.
ClientServiceswillthennotifyyouthatthisfeaturehasbeenactivated
andthatyoumayrequestwireredemptions.
Youmaychangethebankaccount(s)designatedtoreceiveredemption
proceedsatanytimepriortomakingaredemptionrequest.Youshouldsend
aletterofinstruction,includingasignatureguarantee,toClient
Servicesattheaddressshownonpage.
Youshouldbeabletoobtainasignatureguaranteefromabank,broker,
dealer,creditunion(ifauthorizedunderstatelaw),securitiesexchange
orassociation,clearingagency,orsavingsassociation.Anotarypublic
cannotprovideasignatureguarantee.
Thereisnofeeimposedbythefundsforwiringofredemptionproceeds.
However,ifyousellsharesthroughaninvestmentprofessional,the
investmentprofessionalmayimposeafeeforwireredemptions.
RedemptionproceedswillbewiredviatheFederalReserveWireSystemto
yourbankaccountofrecord.Ifyourredemptionrequestisreceivedand
acceptedbythetransferagentbeforethetimesindicatedinthe"Dividend
Times"tableonpage,redemptionproceedswillnormallybewiredonthat
day.Ifyourredemptionrequestisreceivedandacceptedbythetransfer
agentafterthetimesindicatedinthe"DividendTimes"tableonpage,
redemptionproceedswillnormallybewiredonthefollowingbusinessday.
Afundreservestherighttotakeuptosevendaystopayyouifmaking
immediatepaymentwouldadverselyaffectthefund.
CHECKWRITING
Ifyouhaveacheckbookforyouraccount,youmaywriteanunlimitednumber
ofchecks.Theminimumamountforacheckis$500.Donot,however,tryto
closeoutyouraccountbycheck.
INVESTORSERVICES
Fidelityprovidesavarietyofservicestohelpyoumanageyouraccount.
INFORMATIONSERVICES
FIDELITY'STELEPHONEREPRESENTATIVESareavailableMondaythroughFriday,
8:30a.m.to6:00p.m.Easterntime.
STATEMENTSANDREPORTSthatFidelitysendstoyouincludethefollowing:
(smallsolidbullet)Confirmationstatements(aftereverytransaction,
exceptareinvestment,thataffectsyouraccountbalanceoryouraccount
registration)
(smallsolidbullet)Accountstatements(monthly)
(smallsolidbullet)Financialreports(everysixmonths)
Toreduceexpenses,onlyonecopyofmostfinancialreportsand
prospectuseswillbemailed,evenifyouhavemorethanoneaccountina
fund.CallyourinvestmentprofessionalorFidelityClientServicesifyou
needadditionalcopiesoffinancialreports,prospectuses,orhistorical
accountinformation.
SUBACCOUNTINGANDSPECIALSERVICES.Specialprocessinghasbeenarranged
withFIIOCforinstitutionsthatwishtoopenmultipleaccounts(amaster
accountandsubaccounts).Youmayberequiredtoenterintoaseparate
agreementwithFIIOC.Chargesfortheseservices,ifany,willbe
determinedbasedonthelevelofservicestoberendered.
Oneeasywaytopursueyourfinancialgoalsistoinvestmoneyregularly.
Thefundsofferaconvenientservicethatletsyoutransfermoneybetween
fundaccounts,automatically.Whileregularinvestmentplansdonot
guaranteeaprofitandwillnotprotectyouagainstlossinadeclining
market,theycanbeanexcellentwaytoinvestforretirement,ahome,
educationalexpenses,andotherlongtermfinancialgoals.Certain
restrictionsapplyforretirementaccounts.Callyourinvestment
professionalformoreinformation.
REGULARINVESTMENTPLANS
FIDELITYADVISORSYSTEMATICEXCHANGEPROGRAM
TOMOVEMONEYFROMAFIDELITYMONEYMARKETFUNDTOANOTHERFIDELITYFUND
MINIMUMFREQUENCYSETTINGUPORCHANGING
$100Monthly,quarterly,(smallsolidbullet)Toestablish,callyourinvestmentprofessionalafter
semiannually,orbothaccountsareopened.
annually(smallsolidbullet)Tochangetheamountorfrequencyofyour
90/101
12/24/2014
investment,contactyourinvestmentprofessional
directlyor,ifyoupurchasedyoursharesthrougha
brokerdealerorinsurancerepresentative,call
18005227297.Ifyoupurchasedyourshares
throughabankrepresentative,call18008433001.
(smallsolidbullet)Theaccountfromwhichtheexchangesaretobe
processedmusthaveaminimumbalanceof
$10,000.Theaccountintowhichtheexchangeis
beingprocessedmusthaveaminimumof$1,000.
(smallsolidbullet)Bothaccountsmusthavethesameregistrations
andtaxpayerIDnumbers.
(smallsolidbullet)Callatleast2businessdayspriortoyournext
scheduledexchangedate.
SHAREHOLDERANDACCOUNTPOLICIES
DIVIDENDS,CAPITALGAINS,ANDTAXES
Eachfunddistributessubstantiallyallofitsnetinvestmentincomeand
capitalgains,ifany,toshareholderseachyear.Incomedividendsare
declareddailyandpaidmonthly.
Incomedividendsdeclaredareaccrueddailythroughoutthemonthandare
normallydistributedonthefirstbusinessdayofthefollowingmonth.
Basedonpriorapprovalofeachfund,dividendsrelatingtoDailyMoney
Classsharesredeemedduringthemonthcanbedistributedonthedayof
redemption.Eachfundreservestherighttolimitthisservice.
DISTRIBUTIONOPTIONS
Whenyouopenanaccount,specifyonyouraccountapplicationhowyouwant
toreceiveyourdistributions.DailyMoneyClassofferstwooptions:
1.REINVESTMENTOPTION.Yourdividendandcapitalgaindistributions,if
any,willbeautomaticallyreinvestedinadditionalsharesofthesame
classofthefund.Ifyoudonotindicateachoiceonyourapplication,you
willbeassignedthisoption.
2.CASHOPTION.Youwillbesentacheckorwireforyourdividendand
capitalgaindistributions,ifany.
Forretirementaccounts,alldistributionsareautomaticallyreinvested.
Whenyouareover59yearsold,youcanreceivedistributionsincash.
Dividendswillbereinvestedateachfund'sDailyMoneyClassNAVonthe
lastdayofthemonth.Capitalgaindistributions,ifany,willbe
reinvestedattheNAVasoftherecorddateofthedistribution.The
mailingofdistributioncheckswillbeginwithinsevendays.
TAXES
Aswithanyinvestment,youshouldconsiderhowaninvestmentinthefunds
couldaffectyou.Belowaresomeofthefunds'taximplications.
TAXESONDISTRIBUTIONS.InterestincomethatTaxExemptFundearnsis
distributedtoshareholdersasincomedividends.Interestthatisfederally
taxfreeremainstaxfreewhenitisdistributed.Distributionsfromthe
TaxableFunds,however,aresubjecttofederalincometaxandmayalsobe
subjecttostateorlocaltaxes.IfyouliveoutsidetheUnitedStates,
yourdistributionsfromthesefundscouldalsobetaxedbythecountryin
whichyoureside.
Forfederaltaxpurposes,incomeandshorttermcapitalgaindistributions
fromeachTaxableFundaretaxedasdividends;longtermcapitalgain
distributions,ifany,aretaxedaslongtermcapitalgains.
ForshareholdersofTaxExemptFund,gainonthesaleoftaxfreebonds
resultsintaxabledistributions.Shorttermcapitalgainsandaportionof
thegainonbondspurchasedatmarketdiscountaretaxedasdividends;
longtermcapitalgaindistributions,ifany,aretaxedaslongterm
capitalgains.
MutualfunddividendsfromU.S.Governmentsecuritiesaregenerallyfree
fromstateandlocalincometaxes.However,particularstatesmaylimit
thisbenefit,andsometypesofsecurities,suchasrepurchaseagreements
andsomeagencybackedsecurities,maynotqualifyforthebenefit.In
addition,somestatesmayimposeintangiblepropertytaxes.Youshould
consultyourowntaxadviserfordetailsanduptodateinformationonthe
taxlawsinyourstate.
ForthethreemonthperiodendedOctober31,1996,18.96%ofTreasury
Fund'sand6.68%ofPrimeFund'sincomedistributionswerederivedfrom
interestonU.S.Governmentsecurities,whichisgenerallyexemptfrom
stateincometax.
Distributionsaretaxablewhentheyarepaid,whetheryoutakethemincash
orreinvestthem.However,distributionsdeclaredinDecemberandpaidin
JanuaryaretaxableasiftheywerepaidonDecember31.
EveryJanuary,FidelitywillsendyouandtheIRSastatementshowingthe
taxabledistributionspaidtoyouinthepreviousyear.
AportionofTaxExemptFund'sdividendsmaybefreefromstateorlocal
taxes.Incomefrominvestmentsinyourstateareoftentaxfreetoyou.
Eachyear,Fidelitywillsendyouabreakdownofyourfund'sincomefrom
eachstatetohelpyoucalculateyourtaxes.
DuringthefiscalyearendedOctober31,1996,100%ofTaxExemptFund's
incomedividendswasfreefromfederalincometax.
Therearetaxrequirementsthatallfundsmustfollowinordertoavoid
federaltaxation.Initsefforttoadheretotheserequirements,afundmay
havetolimititsinvestmentactivityinsometypesofinstruments.
91/101
12/24/2014
TRANSACTIONDETAILS
EACHFUNDISOPENFORBUSINESSanditsNAVisnormallycalculatedeachday
theNewYorkStockExchange(NYSE)isopen.Thefollowingholidayclosings
havebeenscheduledfor1997:NewYear'sDay,MartinLutherKing's
Day,LaborDay,ThanksgivingDay,andChristmasDay.AlthoughFMRexpects
thesameholidayscheduletobeobservedinthefuture,theNYSEmaymodify
itsholidayscheduleatanytime.OnanydaythattheNYSEclosesearly,
theprincipalgovernmentsecuritiesmarketscloseearly(suchasondaysin
advanceofholidaysgenerallyobservedbyparticipantsinsuchmarkets),or
aspermittedbytheSEC,therightisreservedtoadvancethetimeonthat
daybywhichpurchaseandredemptionordersmustbereceived.
Totheextentthatportfoliosecuritiesaretradedinothermarketsondays
whentheNYSEisclosed,eachclass'sNAVmaybeaffectedondayswhen
investorsdonothaveaccesstothefundtopurchaseorredeemshares.
CertainFidelityfundsmayfollowdifferentholidayclosingschedules.
ACLASS'SNAVisthevalueofasingleshare.TheNAVofDailyMoneyClass
ofeachfundiscomputedbyaddingDailyMoneyClass'sproratashareof
thevalueofthefund'sinvestments,cash,andotherassets,subtracting
DailyMoneyClass'sproratashareofthevalueofthefund'sliabilities,
subtractingtheliabilitiesallocatedtoDailyMoneyClass,anddividing
theresultbythenumberofDailyMoneyClasssharesofthatfundthatare
outstanding.Eachfundvaluesitsportfoliosecuritiesonthebasisof
amortizedcost.Thismethodminimizestheeffectofchangesinasecurity's
marketvalueandhelpseachfundmaintainastable$1.00shareprice.
THEOFFERINGPRICE(pricetobuyoneshare)andREDEMPTIONPRICE(priceto
selloneshare)ofDailyMoneyClasssharesisitsNAV.
WHENYOUSIGNYOURACCOUNTAPPLICATION,youwillbeaskedtocertifythat
yoursocialsecurityortaxpayeridentificationnumberiscorrectandthat
youarenotsubjectto31%backupwithholdingforfailingtoreportincome
totheIRS.IfyouviolateIRSregulations,theIRScanrequireafundto
withhold31%ofyourtaxabledistributionsandredemptions.
YOUMAYINITIATEMANYTRANSACTIONSBYTELEPHONE.Fidelityandthetransfer
agentmayonlybeliableforlossesresultingfromunauthorized
transactionsiftheydonotfollowreasonableproceduresdesignedtoverify
theidentityofthecaller.Fidelityandthetransferagentwillrequest
personalizedsecuritycodesorotherinformation,andmayalsorecord
calls.Youshouldverifytheaccuracyoftheconfirmationstatements
immediatelyafterreceipt.Ifyoudonotwanttheabilitytoredeemand
exchangebytelephone,callthetransferagentforinstructions.Additional
documentationmayberequiredfromcorporations,associations,andcertain
fiduciaries.
IFYOUAREUNABLETOREACHTHETRANSFERAGENTBYPHONE(forexample,during
periodsofunusualmarketactivity),considerplacingyourorderbymail.
EACHFUNDRESERVESTHERIGHTTOSUSPENDTHEOFFERINGOFSHARESforaperiod
oftime.Eachfundalsoreservestherighttorejectanyspecificpurchase
order,includingcertainpurchasesbyexchange.See"ExchangeRestrictions"
onpage.Purchaseordersmayberefusedif,inFMR'sopinion,theywould
disruptmanagementofafund.
WHENYOUPLACEANORDERTOBUYSHARES,yourshareswillbepurchasedatthe
nextNAVcalculatedafteryourorderisreceivedandaccepted.Notethe
following:
(smallsolidbullet)AllofyourpurchasesmustbemadeinU.S.dollarsand
checksmustbedrawnonU.S.banks.
(smallsolidbullet)Thefundsdonotacceptcash.
(smallsolidbullet)Whenmakingapurchasewithmorethanonecheck,each
checkmusthaveavalueofatleast$50.
(smallsolidbullet)Eachfundreservestherighttolimitthenumberof
checksprocessedatonetime.
(smallsolidbullet)Ifyourcheckdoesnotclear,yourpurchasewillbe
canceledandyoucouldbeliableforanylossesorfeesafundorthe
transferagenthasincurred.
Shareholdersofrecordasofthetimesindicatedinthe"DividendTimes"
tableonpagewillbeentitledtodividendsdeclaredthatday.
Sharespurchasedafterthetimesindicatedinthe"DividendTimes"tableon
pagebegintoearnincomedividendsonthefollowingbusinessday.
WHENYOUPLACEANORDERTOSELLSHARES,yourshareswillbesoldatthe
nextNAVcalculatedafteryourorderisreceivedandaccepted.Notethe
following:
(smallsolidbullet)Sharesredeemedbeforethetimesindicatedinthe
"DividendTimes"tableonpagedonotreceivethedividenddeclaredonthe
dayofredemption.Sharesredeemedafterthetimesindicatedinthe
"DividendTimes"tableonpagedoreceivethedividenddeclaredontheday
ofredemption.
(smallsolidbullet)Afundmaywithholdredemptionproceedsuntilitis
reasonablyassuredthatinvestmentscreditedtoyouraccounthavebeen
receivedandcollected.
(smallsolidbullet)Ifyousellsharesbywritingacheckandtheamount
ofthecheckisgreaterthanthevalueofyouraccount,yourcheckwillbe
returnedtoyouandyoumaybesubjecttoadditionalcharges.
WhentheNYSEisclosed(orwhentradingisrestricted)foranyreason
otherthanitscustomaryweekendorholidayclosings,orunderany
emergencycircumstancesasdeterminedbytheSECtomeritsuchaction,a
92/101
12/24/2014
fundmaysuspendredemptionorpostponepaymentdates.Incasesof
suspensionoftherightofredemption,therequestforredemptionmay
eitherbewithdrawnorpaymentmaybemadebasedontheNAVnextdetermined
aftertheterminationofthesuspension.
IFYOURACCOUNTBALANCEFALLSBELOW$500youwillbegiven30days'notice
toreestablishtheminimumbalance.Ifyoudonotincreaseyourbalance,
Fidelityreservestherighttocloseyouraccountandsendtheproceedsto
you.YourshareswillberedeemedattheNAVonthedayyouraccountis
closed.
THETRANSFERAGENTMAYCHARGEAFEEFORSPECIALSERVICES,suchasproviding
historicalaccountdocuments,thatarebeyondthenormalscopeofits
services.
EXCHANGERESTRICTIONS
Asashareholderyouhavetheprivilegeofexchangingsharesofafundfor
sharesofotherFidelityfunds.
IfyouhavepurchasedDailyMoneyClasssharesofafundinconnectionwith
theFidelityAdvisorfundsprogram,yourDailyMoneyClasssharesmaybe
exchangedonlyforClassAorClassTshares,asapplicable,ofFidelity
AdvisorfundsorDailyMoneyClasssharesofanyotherfundofferedthrough
thisprospectus.OthershareholdersmaynotexchangeDailyMoneyClass
sharesofafundforClassAorClassTsharesofFidelityAdvisorfunds.
Anexchangeinvolvestheredemptionofalloraportionofthesharesof
onefundandthepurchaseofsharesofanotherfund.
BYTELEPHONE.Exchangesmayberequestedonanydayafundisopenfor
businessbycallingClientServicesat18008433001between8:30a.m.and
4:00p.m.Easterntime.
BYMAIL.Youmayexchangesharesonanybusinessdaybysubmittingwritten
instructionswithanauthorizedsignaturewhichisonfileforthat
account.Writtenrequestsforexchangesshouldcontainthefundname,class
name,accountnumber,thenumberofsharestoberedeemed,andthenameof
thefundtobepurchased.Writtenrequestsforexchangeshouldbemailedto
ClientServicesattheaddressonpage.
WHENYOUPLACEANORDERTOEXCHANGESHARES,DailyMoneyClassshareswill
beredeemedatthenextdeterminedNAVafteryourorderisreceivedand
accepted.Sharesofthefundtobeacquiredwillbepurchasedatitsnext
NAVcalculatedafterredemptionproceedsaremadeavailable.Youshould
notethat,undercertaincircumstances,afundmaytakeuptosevendaysto
makeredemptionproceedsavailablefortheexchangepurchaseofsharesof
anotherfund.Inaddition,pleasenotethefollowing:
(smallsolidbullet)Exchangeswillnotbepermitteduntilacompletedand
signedaccountapplicationisonfile.
(smallsolidbullet)Thefundyouareexchangingintomustbeavailablefor
saleinyourstate.
(smallsolidbullet)Youmayonlyexchangebetweenaccountsthatare
registeredinthesamename,address,andtaxpayeridentificationnumber.
(smallsolidbullet)Beforeexchangingintoafund,readitsprospectus.
(smallsolidbullet)Ifyouexchangeintoafundwithasalescharge,you
paythepercentagedifferencebetweenthatfund'ssaleschargeandany
saleschargeyouhavealreadypaidinconnectionwiththesharesyouare
exchanging.
(smallsolidbullet)Exchangesmayhavetaxconsequencesforyou.
(smallsolidbullet)Currently,thereisnolimitonthenumberof
exchangesoutofafund,norarethereanyadministrativeorredemption
feesapplicabletoexchangesoutofafund.
(smallsolidbullet)Eachfundreservestherighttorefuseexchange
purchasesbyanypersonorgroupif,inFMR'sjudgment,thefundwouldbe
unabletoinvestthemoneyeffectivelyinaccordancewithitsinvestment
objectiveandpolicies,orwouldotherwisepotentiallybeadversely
affected.
(smallsolidbullet)Yourexchangesmayberestrictedorrefusedifafund
receivesoranticipatessimultaneousordersaffectingsignificantportions
ofthefund'sassets.Inparticular,apatternofexchangesthatcoincides
witha"markettiming"strategymaybedisruptivetoafund.
Althoughthefundswillattempttogiveyoupriornoticewhenevertheyare
reasonablyabletodoso,theymayimposetheserestrictionsatanytime.
Thefundsreservetherighttoterminateormodifytheexchangeprivilege
inthefuture.
OTHERFUNDSMAYHAVEDIFFERENTEXCHANGERESTRICTIONS,andmayimpose
administrativefeesofupto$7.50andredemptionfeesofupto1.50%on
exchanges.Checkeachfund'sprospectusfordetails.
Nodealer,salesrepresentative,oranyotherpersonhasbeenauthorizedto
giveanyinformationortomakeanyrepresentations,otherthanthose
containedinthisProspectusandintherelatedSAI,inconnectionwiththe
offercontainedinthisProspectus.Ifgivenormade,suchother
informationorrepresentationsmustnotberelieduponashavingbeen
authorizedbythefunds.ThisProspectusandtherelatedSAIdonot
constituteanofferbythefundstosellortobuysharesofthefundsto
anypersontowhomitisunlawfultomakesuchoffer.
CapitalReserves:U.S.GovernmentPortfolio
(AFundofDailyMoneyFund)
TreasuryFund(formerlyDailyMoneyFund:U.S.TreasuryPortfolio)
(AFundofNewburyStreetTrust(formerlyDailyTaxExemptMoneyFund))
93/101
12/24/2014
FORMN14
STATEMENTOFADDITIONALINFORMATION
July21,1997
ThisStatementofAdditionalInformationrelatestotheproposed
reorganizationwherebyTreasuryFundwouldacquirealloftheassetsof
CapitalReserves:U.S.GovernmentPortfolioandassumeallofthe
liabilitiesofCapitalReserves:U.S.GovernmentPortfolioinexchange
solelyforCapitalReservesClasssharesofbeneficialinterestinTreasury
Fund.
ThisStatementofAdditionalInformationconsistsofthiscoverpageand
thefollowingdescribeddocuments,eachofwhichisincorporatedby
referenceinthisStatementofAdditionalInformation:
TheStatementofAdditionalInformationofTreasuryFunddatedMay30,
1997,previouslyfiledonEDGAR(AccessionNumber000035617397000007).
1.TheProspectusdatedNovember29,1996(assupplementedMarch21,1997)
andtheStatementofAdditionalInformationdatedNovember29,1996(as
supplementedJanuary2,1997)ofCapitalReserves:U.S.Government
Portfolio,previouslyfiledonEDGAR(AccessionNumbers
000002854096000081,000002854097
000044,000002854096000081,and000002854097000010,respectively).
2.TheauditedfinancialstatementsofCapitalReserves:U.S.Government
PortfolioincludedintheAnnualReportofCapitalReserves:U.S.
GovernmentPortfolioforthefiscalyearendedJuly31,1996,asfiled
pursuanttoRule30d1undertheInvestmentCompanyActof1940onEDGAR
(AccessionNumber000002854096000073).
3.TheauditedfinancialstatementsofTreasuryFundincludedinthe
AnnualReportofTreasuryFundforthefiscalperiodendedOctober31,
1996,asfiledpursuanttoRule30d1undertheInvestmentCompanyActof
1940onEDGAR(AccessionNumber000002854096000093).
4.TheunauditedfinancialstatementsofCapitalReserves:U.S.Government
PortfolioincludedintheSemiAnnualReportofCapitalReserves:U.S.
GovernmentPortfolioforthefiscalperiodendedJanuary31,1997,asfiled
5.TheunauditedfinancialstatementsofTreasuryFundincludedinthe
SemiAnnualReportofTreasuryFundforthefiscalperiodendedApril30,
1940onEDGAR.
6.TheproformafinancialstatementsofCapitalReserves:U.S.
GovernmentPortfolioandTreasuryFundasofJanuary31,1997.
ThisStatementofAdditionalInformationisnotaprospectus.AProxy
StatementandProspectusdatedJuly21,1997,relatingtothe
abovereferencedmattermaybeobtainedfromFidelityClientServices,82
DevonshireStreet,Boston,Massachusetts,02109.ThisStatementof
AdditionalInformationrelatesto,andshouldbereadinconjunctionwith,
suchProxyStatementandProspectus.
CapitalReserves:MoneyMarketPortfolio
PrimeFund(formerlyDailyMoneyFund:MoneyMarketPortfolio)
FORMN14
July21,1997
reorganizationwherebyPrimeFundwouldacquirealloftheassetsof
CapitalReserves:MoneyMarketPortfolioandassumealloftheliabilities
ofCapitalReserves:MoneyMarketPortfolioinexchangesolelyforCapital
ReservesClasssharesofbeneficialinterestinPrimeFund.
7.TheStatementofAdditionalInformationofPrimeFunddatedMay30,
1997,previouslyfiledonEDGAR(AccessionNumber000035617397000007).
8.TheProspectusdatedNovember29,1996(assupplementedMarch21,1997)
andtheStatementofAdditionalInformationdatedNovember29,1996(as
supplementedJanuary2,1997)ofCapitalReserves:MoneyMarketPortfolio
previouslyfiledonEDGAR(AccessionNumbers000002854096000081,
000002854097
000044,000002854096000081,and000002854097000010,respectively).
9.TheauditedfinancialstatementsofCapitalReserves:MoneyMarket
PortfolioincludedintheAnnualReportofCapitalReserves:MoneyMarket
PortfolioforthefiscalyearendedJuly31,1996,asfiledpursuantto
Rule30d1undertheInvestmentCompanyActof1940onEDGAR(Accession
Number000002854096
000073).
10.TheauditedfinancialstatementsofPrimeFundincludedintheAnnual
ReportofPrimeFundforthefiscalperiodendedOctober31,1996,asfiled
(AccessionNumber
000002854096000093).
11.TheunauditedfinancialstatementsofCapitalReserves:MoneyMarket
94/101
12/24/2014
PortfolioincludedintheSemiAnnualReportofCapitalReserves:Money
MarketPortfolioforthefiscalperiodendedJanuary31,1997,asfiled
12.TheunauditedfinancialstatementsofPrimeFundincludedinthe
SemiAnnualReportofPrimeFundforthefiscalperiodendedApril30,
1940onEDGAR.
13.TheproformafinancialstatementsofCapitalReserves:MoneyMarket
PortfolioandPrimeFundasofJanuary31,1997.
CapitalReserves:MunicipalMoneyMarketPortfolio
TaxExemptFund(formerlyDailyTaxExemptMoneyFund)
FORMN14
July21,1997
reorganizationwherebyTaxExemptFundwouldacquirealloftheassetsof
CapitalReserves:MunicipalMoneyMarketPortfolioandassumeallofthe
liabilitiesofCapitalReserves:MunicipalMoneyMarketPortfolioin
exchangesolelyforCapitalReservesClasssharesofbeneficialinterestin
TaxExemptFund.
14.TheStatementofAdditionalInformationofTaxExemptFunddatedMay
30,1997,previouslyfiledonEDGAR(AccessionNumber
000035617397000007).
15.TheProspectusdatedNovember29,1996(assupplementedMarch21,
1997)andtheStatementofAdditionalInformationdatedNovember29,1996
(assupplementedJanuary2,1997)ofCapitalReserves:MunicipalMoney
MarketPortfolio,previouslyfiledonEDGAR(AccessionNumbers
000002854096000081,000002854097000044,000002854096000081,and
000002854097000010,respectively).
16.TheauditedfinancialstatementsofCapitalReserves:MunicipalMoney
MarketPortfolioincludedintheAnnualReportofCapitalReserves:
MunicipalMoneyMarketPortfolioforthefiscalyearendedJuly31,1996,
asfiledpursuanttoRule30d1undertheInvestmentCompanyActof1940on
EDGAR(AccessionNumber000002854096000073).
17.TheauditedfinancialstatementsofDailyTaxExemptMoneyFund
(currentlyknownasTaxExemptFund)includedintheAnnualReportof
TaxExemptFundforthefiscalperiodendedOctober31,1996,asfiled
18.TheunauditedfinancialstatementsofCapitalReserves:Municipal
MoneyMarketPortfolioincludedintheSemiAnnualReportofCapital
Reserves:MunicipalMoneyMarketPortfolioforthefiscalperiodended
January31,1997,asfiledpursuanttoRule30d1undertheInvestment
CompanyActof1940onEDGAR(AccessionNumber000002854097000026).
19.TheunauditedfinancialstatementsofTaxExemptFundincludedinthe
SemiAnnualReportofTaxExemptFundforthefiscalperiodendedApril30,
1940onEDGAR.
20.TheproformafinancialstatementsofCapitalReserves:Municipal
MoneyMarketPortfolioandTaxExemptFundasofJanuary31,1997.
PARTC.OTHERINFORMATION
Item15.Indemnification
PursuanttoDel.CodeAnn.title12(subsection)3817,aDelaware
businesstrustmayprovideinitsgoverninginstrumentforthe
indemnificationofitsofficersandtrusteesfromandagainstanyandall
claimsanddemandswhatsoever.ArticleX,Section10.02oftheTrust
InstrumentstatesthattheRegistrantshallindemnifyanypresenttrustee
orofficertothefullestextentpermittedbylawagainstliability,and
allexpensesreasonablyincurredbyhimorherinconnectionwithany
claim,action,suitorproceedinginwhichheorsheisinvolvedbyvirtue
ofhisorherserviceasatrustee,officer,orboth,andagainstany
amountincurredinsettlementthereof.Indemnificationwillnotbeprovided
toapersonadjudgedbyacourtorotheradjudicatorybodytobeliableto
theRegistrantoritsshareholdersbyreasonofwillfulmisfeasance,bad
95/101
12/24/2014
faith,grossnegligenceorrecklessdisregardofhisorherduties
(collectively,"disablingconduct"),ornottohaveactedingoodfaithin
thereasonablebeliefthathisorheractionwasinthebestinterestof
theRegistrant.Intheeventofasettlement,noindemnificationmaybe
providedunlesstherehasbeenadetermination,asspecifiedintheTrust
Instrument,thattheofficerortrusteedidnotengageindisabling
conduct.
PursuanttoSection11oftheDistributionAgreement,theRegistrant
agreestoindemnifyandholdharmlesstheDistributorandeachofits
directorsandofficersandeachperson,ifany,whocontrolsthe
DistributorwithinthemeaningofSection15ofthe1933Actagainstany
loss,liability,claim,damagesorexpensearisingbyreasonofanyperson
acquiringanyshares,baseduponthegroundthattheregistration
statement,Prospectus,StatementofAdditionalInformation,shareholder
reportsorotherinformationfiledormadepublicbytheRegistrant
includedamateriallymisleadingstatementoromission.However,the
RegistrantdoesnotagreetoindemnifytheDistributororholditharmless
totheextentthatthestatementoromissionwasmadeinrelianceupon,and
inconformitywith,informationfurnishedtotheRegistrantbyoronbehalf
oftheDistributor.TheRegistrantdoesnotagreetoindemnifytheparties
againstanyliabilitytowhichtheywouldbesubjectbyreasonoftheirown
disablingconduct.
PursuanttotheagreementbywhichFidelityInvestmentsInstitutional
OperationsCompany,Inc.("FIIOC")isappointedsubtransferagent,the
TransferAgentagreestoindemnifyFIIOCforFIIOC'slosses,claims,
damages,liabilitiesandexpenses(includingreasonablecounselfeesand
expenses)(losses)totheextentthattheTransferAgentisentitledtoand
receivesindemnificationfromthePortfolioforthesameevents.Underthe
TransferAgencyAgreement,theRegistrantagreestoindemnifyandholdthe
TransferAgentharmlessagainstanylosses,claims,damages,liabilities,
orexpenses(includingreasonablecounselfeesandexpenses)resulting
from:
(1)anyclaim,demand,actionorsuitbroughtbyanypersonotherthanthe
Registrant,includingbyashareholderwhichnamestheTransferAgent
and/ortheRegistrantasapartyandisnotbasedonanddoesnotresult
fromtheTransferAgent'swillfulmisfeasance,badfaithornegligenceor
recklessdisregardofduties,andarisesoutoforinconnectionwiththe
TransferAgent'sperformanceundertheTransferAgencyAgreement;or
(2)anyclaim,demand,actionorsuit(excepttotheextentcontributedto
bytheTransferAgent'swillfulmisfeasance,badfaithornegligenceor
recklessdisregardofduties)whichresultsfromthenegligenceofthe
Registrant,orfromtheTransferAgent'sactinguponanyinstruction(s)
reasonablybelievedbyittohavebeenexecutedorcommunicatedbyany
persondulyauthorizedbytheRegistrant,orasaresultoftheTransfer
Agent'sactinginrelianceuponadvicereasonablybelievedbytheTransfer
AgenttohavebeengivenbycounselfortheRegistrant,orasaresultof
theTransferAgent'sactinginrelianceuponanyinstrumentorstock
certificatereasonablybelievedbyittohavebeengenuineandsigned,
countersignedorexecutedbytheproperperson.
PursuanttotheagreementbywhichFIIOCisappointedtransferagent,the
RegistrantagreestoindemnifyandholdFIIOCharmlessagainstanylosses,
claims,damages,liabilitiesorexpenses(includingreasonablecounselfees
andexpenses)resultingfrom:
(1)anyclaim,demand,actionorsuitbroughtbyanypersonotherthanthe
Registrant,includingbyashareholder,whichnamesFIIOCand/orthe
RegistrantasapartyandisnotbasedonanddoesnotresultfromFIIOC's
willfulmisfeasance,badfaithornegligenceorrecklessdisregardof
duties,andarisesoutoforinconnectionwithFIIOC'sperformanceunder
theTransferAgencyAgreement;or
(2)anyclaim,demand,actionorsuit(excepttotheextentcontributedto
byFIIOC'swillfulmisfeasance,badfaithornegligenceorreckless
disregardofduties)whichresultsfromthenegligenceoftheRegistrant,
orfromFIIOC'sactinguponanyinstruction(s)reasonablybelievedbyitto
havebeenexecutedorcommunicatedbyanypersondulyauthorizedbythe
Registrant,orasaresultofFIIOC'sactinginrelianceuponadvice
reasonablybelievedbyFIIOCtohavebeengivenbycounselforthe
Registrant,orasaresultofFIIOC'sactinginrelianceuponany
instrumentorstockcertificatereasonablybelievedbyittohavebeen
genuineandsigned,countersignedorexecutedbytheproperperson.
Item16.Exhibits
(1)TrustInstrument,datedJune20,1991,waselectronicallyfiledandis
incorporatedhereinbyreferencetoExhibit1(a)toPostEffective
AmendmentNo.20.
(2)BylawsoftheTrust,asamended,areincorporatedhereinbyreference
toExhibit2(a)toFidelityUnionStreetTrustII'sPostEffective
AmendmentNo.17(fileNo.3343757).
(3)Notapplicable.
(4)(a)AgreementandPlanofReorganizationamongDailyMoneyFund:
CapitalReserves:U.S.GovernmentPortfolioandNewburyStreetTrust:
TreasuryFundisfiledhereinasExhibit1totheCapitalReserves:U.S.
GovernmentPortfolioProxyStatementandProspectus.
(b)AgreementandPlanofReorganizationamongDailyMoneyFund:Capital
Reserves:MoneyMarketPortfolioandNewburyStreetTrust:PrimeFundis
96/101
12/24/2014
filedhereinasExhibit1totheCapitalReserves:MoneyMarketPortfolio
ProxyStatementandProspectus.
(c)AgreementandPlanofReorganizationamongDailyMoneyFund:Capital
Reserves:MunicipalMoneyMarketPortfolioandNewburyStreetTrust:
TaxExemptFundisfiledhereinasExhibit1totheCapitalReserves:
MunicipalMoneyMarketPortfolioProxyStatementandProspectus.
(5)Notapplicable.
(6)(a)FormofManagementContractbetweenNewburyStreetTrust,onbehalf
ofTreasuryFund,andFidelityManagement&ResearchCompanywas
electronicallyfiledandisincorporatedhereinbyreferencetoExhibit
5(a)toPostEffectiveAmendmentNo.29.
(b)SubAdvisoryAgreementdatedDecember30,1991,betweenFidelity
Management&ResearchCo.andFMRTexasInc.(withrespecttoDaily
TaxExemptMoneyFundII(currentlyknownasTaxExemptFund))was
5(b)toPostEffectiveAmendmentNo.25.
(c)FormofManagementContractbetweenNewburyStreetTrust,onbehalfof
PrimeFund,andFidelityManagement&ResearchCompanywaselectronically
filedandisincorporatedhereinbyreferencetoExhibit5(c)to
PostEffectiveAmendmentNo.29.
(d)FormofManagementContractbetweenNewburyStreetTrust,onbehalfof
TaxExemptFund,andFidelityManagement&ResearchCompanywas
5(d)toPostEffectiveAmendmentNo.29.
(e)FormofSubAdvisoryAgreementbetweenFMRTexasInc.andFidelity
Management&ResearchCompany,onbehalfofPrimeFund,waselectronically
filedandisincorporatedhereinbyreferencetoExhibit5(e)to
(f)FormofSubAdvisoryAgreementbetweenFMRTexasInc.andFidelity
Management&ResearchCompany,onbehalfofTreasuryFund,was
5(f)toPostEffectiveAmendmentNo.29.
(7)(a)GeneralDistributionAgreementdatedDecember30,1991,between
DailyTaxExemptMoneyFundIIandFidelityDistributorsCorporationwas
(b)ServiceContractbetweenFidelityDistributorsCorporationand
"QualifiedRecipients"withrespecttosharesofDailyTaxExemptMoney
Fund(currentlyknownasTaxExemptFund)waselectronicallyfiledandis
incorporatedhereinbyreferencetoExhibit6(b)toPostEffective
AmendmentNo.25.
(c)ServiceContract(AdministrativeandRecordkeepingServicesOnly)
betweenFidelityDistributorsCorporationand"QualifiedRecipients"with
respecttosharesofDailyTaxExemptMoneyFund(currentlyknownas
TaxExemptFund)waselectronicallyfiledandisincorporatedhereinby
referencetoExhibit6(c)toPostEffectiveAmendmentNo.25.
(d)AmendmentstotheGeneralDistributionAgreementbetweenDaily
TaxExemptMoneyFundIIonbehalfofDailyTaxExemptMoneyFund
(currentlyknownasTaxExemptFund)andFidelityDistributorsCorporation,
datedMarch14,1996andJuly15,1996,waselectronicallyfiledandis
incorporatedhereinbyreferencetoExhibit6(a)ofFidelityCourtStreet
Trust'sPostEffectiveAmendmentNo.61(FileNo.258774).
(e)AmendmenttotheGeneralDistributionAgreementbetweenDaily
TaxExemptMoneyFundIIonbehalfofDailyTaxExemptMoneyFund
(currentlyknownasTaxExemptFund)andFidelityDistributorsCorporation,
datedOctober1,1996,waselectronicallyfiledandisincorporatedherein
byreferencetoExhibit6(g)ofDailyMoneyFund'sPostEffectiveAmendment
No.40(FileNo.277909).
(f)GeneralDistributionAgreementdatedSeptember30,1993betweenDaily
MoneyFund,onbehalfofMoneyMarketPortfolio(currentlyknownasPrime
Fund),andFidelityDistributorsCorporationwaselectronicallyfiledand
isincorporatedhereinbyreferenceasExhibit6(a)toDailyMoneyFund's
(g)ServiceContractbetweenFidelityDistributorsCorporationand
"QualifiedRecipients"withrespecttosharesofU.S.TreasuryPortfolio
(currentlyTreasuryFund)andMoneyMarketPortfolio(currentlyknownas
PrimeFund)waselectronicallyfiledandisincorporatedhereinby
referenceasExhibit6(g)toDailyMoneyFund'sPostEffectiveAmendment
No.34.
(h)ServiceContract(AdministrativeandRecordkeepingServicesOnly)
betweenFidelityDistributorsCorporationand"QualifiedRecipients"with
respecttosharesofU.S.TreasuryPortfolio(currentlyknownasTreasury
Fund)andMoneyMarketPortfolio(currentlyknownasPrimeFund)was
electronicallyfiledandisincorporatedhereinbyreferenceasExhibit
6(h)toDailyMoneyFund'sPostEffectiveAmendmentNo.34.
(i)FormofSellingDealerAgreementforBankRelatedTransactions(most
recentlyrevisedJanuary,1997)waselectronicallyfiledandis
incorporatedhereinbyreferencetoExhibit6(i)toPostEffective
AmendmentNo.28.
(j)FormofSellingDealerAgreement(mostrecentlyrevisedJanuary,1997)
waselectronicallyfiledandisincorporatedhereinbyreferencetoExhibit
6(j)toPostEffectiveAmendmentNo.28.
(k)AmendmentstotheGeneralDistributionAgreementbetweenDailyMoney
97/101
12/24/2014
FundonbehalfofU.S.TreasuryPortfolio(currentlyknownasTreasury
Fund)andMoneyMarketPortfolio(currentlyknownasPrimeFund)and
FidelityDistributorsCorporation,datedMarch14,1996andJuly15,1996,
areincorporatedhereinbyreferencetoExhibit6(a)ofFidelityCourt
StreetTrust'sPostEffectiveAmendmentNo.61(FileNo.258774).
(l)FormofBankAgencyAgreement(mostrecentlyrevisedJanuary,1997)was
6(l)toPostEffectiveAmendmentNo.28.
(8)(a)RetirementPlanforNonInterestedPersonTrustees,Directorsor
GeneralPartners,asamendedonNovember16,1995,isincorporatedherein
byreferencetoExhibit7(a)ofFidelitySelectPortfolio's(FileNo.
269972)PostEffectiveAmendmentNo.54.
(b)TheFeeDeferralPlanforNonInterestedPersonDirectorsandTrustees
oftheFidelityFunds,effectiveasofSeptember14,1995andamended
throughNovember14,1996,isincorporatedhereinbyreferencetoExhibit
7(b)ofFidelityAberdeenStreetTrust's(FileNo.3343529)PostEffective
AmendmentNo.19.
(9)(a)CustodianAgreement,AppendixB,andAppendixC,datedDecember1,
1994,betweenUMBBank,n.a.andDailyTaxExemptMoneyFundonbehalfof
DailyTaxExemptMoneyFund(currentlyknownasTaxExemptFund)was
electronicallyfiledandisincorporatedhereinbyreferencetoExhibit8
toFidelityCaliforniaMunicipalTrust'sPostEffectiveAmendmentNo.28
(FileNo.283367).
(b)AppendixA,datedOctober17,1996,totheCustodianAgreement,dated
December1,1994,betweenUMBBank,n.a.andDailyTaxExemptMoneyFundon
behalfofDailyTaxExemptMoneyFund(currentlyknownasTaxExemptFund)
8(a)toFidelityCourtStreetTrust'sPostEffectiveAmendmentNo.61(File
No.258774).
(c)CustodianAgreementandAppendixC,datedDecember1,1994,betweenThe
BankofNewYorkandtheFidelityDailyMoneyFundTrustonbehalfofMoney
MarketPortfolio(currentlyknownasPrimeFund)andU.S.Treasury
Portfolio(currentlyknownasTreasuryFund)andMoneyMarketPortfolio
(currentlyknownasPrimeFund)isincorporatedhereinbyreferenceto
Exhibit8(a)ofFidelityHerefordStreetTrust'sPostEffectiveAmendment
No.4(FileNo.3352577).
(d)AppendixA,datedAugust31,1996,totheCustodianAgreement,dated
December1,1994,betweenTheBankofNewYorkandDailyMoneyFundon
behalfofMoneyMarketPortfolio(currentlyknownasPrimeFund)andU.S.
TreasuryPortfolio(currentlyknownasTreasuryFund)waselectronically
filedandisincorporatedhereinbyreferencetoExhibit8(b)toDaily
MoneyFund'sPostEffectiveAmendmentNo.40.
(e)AppendixB,datedJuly31,1996,totheCustodianAgreement,dated
December1,1994,betweenTheBankofNewYorkandFidelityDailyMoney
FundTrustonbehalfofMoneyMarketPortfolio(currentlyknownasPrime
Fund)andU.S.TreasuryPortfolio(currentlyknownasTreasuryFund)is
incorporatedhereinbyreferencetoExhibit8(c)ofFidelityIncomeFund's
PostEffectiveAmendmentNo.35(FileNo.292661).
(f)FidelityGroupRepoCustodianAgreementamongTheBankofNewYork,J.
P.MorganSecurities,Inc.,andtheFidelityFunds,waselectronically
filedandisincorporatedhereinbyreferencetoExhibit8(d)toFidelity
InstitutionalCashPortfolio'sPostEffectiveAmendmentNo.31.
(g)Schedule1totheFidelityGroupRepoCustodianAgreementamongThe
BankofNewYork,J.P.MorganSecurities,Inc.,andtheFidelityFundswas
8(e)toDailyMoneyFund'sPostEffectiveAmendmentNo31.
(h)FidelityGroupRepoCustodianAgreementamongChemicalBank,Greenwich
CapitalMarkets,Inc.,andtheFidelityFundswaselectronicallyfiledand
isincorporatedhereinbyreferencetoExhibit8(f)toDailyMoneyFund's
(i)JointTradingAccountCustodyAgreementbetweentheTheBankofNew
YorkandtheFidelityFundswaselectronicallyfiledandisincorporated
hereinbyreferencetoExhibit8(h)toDailyMoneyFund'sPostEffective
AmendmentNo.31.
(j)FirstAmendmenttoJointTradingAccountCustodyAgreementbetweenthe
TheBankofNewYorkandtheFidelityFundswaselectronicallyfiledandis
incorporatedhereinbyreferencetoExhibit8(i)toDailyMoneyFund's
(10)(a)DistributionandServicePlanforTreasuryFund:DailyMoneyClass
(b)DistributionandServicePlanforPrimeFund:DailyMoneyClasswas
15(b)toPostEffectiveAmendmentNo.29.
(c)DistributionandServicePlanforTaxExemptFund:DailyMoneyClass
15(c)toPostEffectiveAmendmentNo29.
(d)DistributionandServicePlanforTreasuryFund:AdvisorBClasswas
15(d)toPostEffectiveAmendmentNo.29.
(11)(a)Opinionandconsentofcounsel(K&L)astothelegalityofshares
beingregisteredonbehalfofTreasuryFundisfiledhereinasExhibit
11(a).
98/101
12/24/2014
(b)Opinionandconsentofcounsel(K&L)astothelegalityofsharesbeing
registeredonbehalfofPrimeFundisfiledhereinasExhibit11(b).
(c)Opinionandconsentofcounsel(K&L)astothelegalityofsharesbeing
registeredonbehalfofTaxExemptFundisfiledhereinasExhibit11(c).
(12)(a)OpinionandConsentofcounsel(K&L)astotaxmattersin
connectionwiththereorganizationofCapitalReserves:U.S.Government
PortfolioisfiledhereinasExhibit12(a).
(b)OpinionandConsentofcounsel(K&L)astotaxmattersinconnection
withthereorganizationofCapitalReserves:MoneyMarketPortfoliois
filedhereinasExhibit12(b).
(c)OpinionandConsentofcounsel(K&L)astotaxmattersinconnection
withthereorganizationofCapitalReserves:MunicipalMoneyMarket
PortfolioisfiledhereinasExhibit12(c).
(13)Notapplicable.
(14)(a)ConsentofCoopers&LybrandL.L.P.isfiledhereinasExhibit
14(a).
(b)ConsentofPriceWaterhouse,LLP.isfiledhereinasExhibit14(b).
(15)Notapplicable.
(16)PowersofAttorney,datedDecember19,1996,January3,1997,and
March6,1997arefiledhereinasExhibit16.
(17)Rule24f2NoticeforRegistrant'smostrecentfiscalyearended
October31,1996isfiledhereinasExhibit17.
Item17.Undertakings
(1)TheundersignedRegistrantagreesthatpriortoanypublicreoffering
ofthesecuritiesregisteredthroughtheuseoftheprospectuswhichisa
partofthisRegistrationStatementbyanypersonorpartywhoisdeemedto
beanunderwriterwithinthemeaningofRule145(c)oftheSecuritiesAct
of1933,thereofferingprospectuswillcontaintheinformationcalledfor
bytheapplicableregistrationformforreofferingbypersonswhomaybe
deemedunderwriters,inadditiontotheinformationcalledforbytheother
itemsoftheapplicableform.
(2)TheundersignedRegistrantagreesthateveryprospectusthatisfiled
underparagraph(1)abovewillbefiledaspartofanamendmenttothe
RegistrationStatementandwillnotbeuseduntiltheamendmentis
effective,andthat,indetermininganyliabilityundertheSecuritiesAct
of1933,eachPostEffectiveAmendmentshallbedeemedtobeanew
RegistrationStatementforthesecuritiesofferedtherein,andtheoffering
ofsecuritiesatthattimeshallbedeemedtobetheinitialbonafide
offeringofthem.
SIGNATURES
PursuanttotherequirementsoftheSecuritiesActof1933,this
RegistrationStatementhasbeensignedonitsbehalfbytheundersigned,
thereuntodulyauthorized,intheCityofBoston,andCommonwealthof
Massachusetts,onthe11thdayofJune1997.
NEWBURYSTREETTRUST
By/s/EdwardC.Johnson3d(dagger)
EdwardC.Johnson3d,President
PursuanttotherequirementsoftheSecuritiesActof1933,this
RegistrationStatementhasbeensignedbelowbythefollowingpersonsin
thecapacitiesandonthedatesindicated.
(Signature)(Title)(Date)
[DownloadTable]
/s/EdwardC.Johnson3d(dagger)PresidentandTrusteeJune11,1997
EdwardC.Johnson3d(PrincipalExecutiveOfficer)
/s/KennethA.Rathgeber*TreasurerJune11,1997
KennethA.Rathgeber
/s/J.GaryBurkheadTrusteeJune11,1997
J.GaryBurkhead
/s/RalphF.Cox**TrusteeJune11,1997
RalphF.Cox
/s/PhyllisBurkeDavis**TrusteeJune11,1997
PhyllisBurkeDavis
/s/RobertM.Gates***TrusteeJune11,1997
RobertM.Gates
/s/E.BradleyJones**TrusteeJune11,1997
E.BradleyJones
99/101
12/24/2014
/s/DonaldJ.Kirk**TrusteeJune11,1997
DonaldJ.Kirk
/s/PeterS.Lynch**TrusteeJune11,1997
PeterS.Lynch
/s/MarvinL.Mann**TrusteeJune11,1997
MarvinL.Mann
/s/WilliamO.McCoy**TrusteeJune11,1997
WilliamO.McCoy
/s/GeraldC.McDonough**TrusteeJune11,1997
GeraldC.McDonough
/s/ThomasR.Williams**TrusteeJune11,1997
ThomasR.Williams
(dagger)SignaturesaffixedbyJ.GaryBurkheadpursuanttoapowerof
attorneydatedJanuary3,1997andfiledherewith.
*SignatureaffixedbyJohnH.Costellopursuanttoapowerofattorney
datedDecember19,1996andfiledherewith.
**SignatureaffixedbyRobertC.Hackerpursuanttoapowerofattorney
datedDecember19,1996andfiledherewith.
***SignatureaffixedbyRobertC.Hackerpursuanttoapowerofattorney
datedMarch6,1997andfiledherewith.
DatesReferencedHereinandDocumentsIncorporatedbyReference
ThisN14EL24Filing Date
Filedon:
10/31/04
7/31/04
10/31/03
7/31/03
7/31/02
10/31/01
7/31/01
10/31/00
7/31/00
1/1/98
10/31/97
10/30/97
9/17/97
7/21/97
7/11/97
6/12/97
6/11/97
6/4/97
5/31/97
5/30/97
5/9/97
4/30/97
3/31/97
3/25/97
3/21/97
3/20/97
3/10/97
3/6/97
1/31/97
1/7/97
1/3/97
1/2/97
12/19/96
OtherFilings
24F2NT,NCSR,NSARB
NQ
24F2NT,NCSR,NSARB
24F2NT,N30D,NSARB
24F2NT,N30D,NSARB
24F2NT,N30D,NSARB
485APOS
497
497J
485BPOS
DEF14A,PRE14A
N30D
100/101
12/24/2014
12/18/96
11/29/96
11/18/96
11/14/96
10/31/96
10/23/96
10/17/96
10/1/96
8/31/96
7/31/96
7/15/96
3/14/96
11/16/95
9/14/95
12/1/94
9/30/93
9/29/93
485BPOS,N30D
24F2NT,N30D,NSARB
ListallFilings
TOP
FilingSubmission000003537397000010AlternativeFormats(Word/RichText,HTML,PlainText,etal.)
Copyright2014FranFinnegan&Company.AllRightsReserved.
AboutPrivacyRedactionsHelpWed,24Dec15:21:44.1GMT
101/101

SEC Info - Fidelity Newbury Street Trust - N14EL24' On 6-12-97 Registration

Загружено:

Сведения о документе

Оригинальное название

Авторское право

Доступные форматы

Поделиться этим документом

Поделиться или встроить документ

Параметры публикации

Этот документ был вам полезен?

Это неприемлемый материал?

Авторское право:

Доступные форматы

SEC Info - Fidelity Newbury Street Trust - N14EL24' On 6-12-97 Registration

Загружено:

Авторское право:

Доступные форматы

12/24/2014

SECInfoHome SearchMyInterestsHelp SignInPleaseSignIn

Вам также может понравиться