ANNUAL REPORT
FOR THE PERIOD ENDED APRIL 30, 1993
FIDELITY
MARKET INDEX
FUND
(registered trademark)
FMI-6-93A
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Jonathan F. Weed, VICE PRESIDENT
Gary L. French, TREASURER
John H. Costello, ASSISTANT TREASURER
Arthur S. Loring, SECRETARY
Robert H. Morrison, MANAGER,
SECURITY TRANSACTIONS
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox
Phyllis Burke Davis
Richard J. Flynn
Edward C. Johnson 3d
E. Bradley Jones
Donald J. Kirk
Peter S. Lynch
Edward H. Malone
Gerald C. McDonough
Thomas R. Williams
Bertram H. Witham
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
CORPORATE HEADQUARTERS
82 Devonshire Street
Boston, MA 02109
1-800-544-8888
PERFORMANCE UPDATE
CUMULATIVE TOTAL RETURNS
FOR THE PERIOD ENDED APRIL 30, 1993
Fidelity Market Index Fund S&P 500
Percent
Row: 1, Col: 1, Value: 8.850000000000001
Row: 1, Col: 2, Value: 9.239999999999998
Row: 2, Col: 1, Value: 43.69
Row: 2, Col: 2, Value: 43.98
43.69
43.98
8.85
9.24
One Year Life of Fund
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED MARCH 31, 1993
TOP TEN
EQUITY HOLDINGS
AS OF APRIL 30, 1993
Exxon Corp.
General Electric Co.
American Telephone &
Telegraph Co.
Wal-Mart Stores, Inc.
Coca-Cola Company (The)
Royal Dutch Petroleum Co.
Merck & Co., Inc.
Philip Morris Companies, Inc.
du Pont (E.I.) de Nemours &
Co.
GTE Corp.
THE CHART SHOWS FIDELITY MARKET INDEX FUND'S TOTAL RETURNS WHICH INCLUDE
CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS.
TOTAL RETURN FIGURES DO NOT REFLECT THE EFFECT OF THE .50% REDEMPTION FEE
ON SHARES HELD LESS THAN 180 DAYS OR THE EFFECT OF THE ANNUAL $10 INDEX
ACCOUNT FEE. IF THESE FEES HAD BEEN INCLUDED, THE FUND'S RETURNS WOULD HAVE
BEEN LOWER. FIGURES FOR THE S&P 500, AN UNMANAGED INDEX OF COMMON STOCK
PRICES, INCLUDE REINVESTMENT OF DIVIDENDS. THE S&P 500 IS A REGISTERED
TRADEMARK OF STANDARD & POOR'S CORPORATION.
One Year Life of Fund
14.87% 13.45%
AVERAGE ANNUAL TOTAL RETURNS for more than one year assume a steady
compounded rate of return and are not the fund's year-by-year results,
which fluctuated over the periods shown. The LIFE OF FUND figures are from
commencement of operations, March 6, 1990, to the periods listed above.
If the adviser had not reimbursed certain fund expenses during the periods
shown, the total returns would have been lower.
ALL PERFORMANCE NUMBERS ARE HISTORICAL; THE FUND'S SHARE PRICE AND RETURN
WILL VARY AND YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES.
AN INTERVIEW WITH
JAY WEED,
PORTFOLIO MANAGER OF
FIDELITY MARKET INDEX FUND
Q. HOW DID THE FUND PERFORM, JAY?
A. The fund returned 8.85% for the year ended April 30, 1993 compared to
the benchmark against which it's measured, the Standard & Poor's 500 index,
which was up 9.24%. Expenses account for the difference. The fund
outperformed the average growth and income fund, which was up 7.73%, as
measured by Lipper Analytical Services.
Q. WHAT SECTORS CONTRIBUTED MOST TO THE FUND'S PERFORMANCE?
A. Keep in mind that because the fund is constructed to mimic the S&P 500
index, its sector emphasis is determined by the index. That said, the
positive story during the past twelve months has been in financial stocks.
Banking, insurance, and other financial stocks were up 10% to 40%. The
financial sector as a whole rose 19% during the 12 months. The bad news was
concentrated in consumer non-durables, which account for more than 20% of
the index and include sectors such as health care, tobacco, and food. These
sectors declined 20% or more, with former stalwarts such as Philip Morris
hit hard by the recent devaluation of its brand names.
Q. WHAT EFFECT DID THE PERFORMANCE OF THE GOLD SECTOR HAVE ON THE INDEX?
A. Not as much as you might think from reading the daily financial news.
Before you can get excited about a particular sector's performance, it
helps to know how much of the index it represents. Because gold represents
less than 1% of the index, its 40% rise had very little influence on the
fund's total return. A lot of the interest in the stock market relates to
the big stories, such as gold recently. Technology provides a slightly
different example. Semiconductor companies, such as Intel and Motorola,
rose an average of 70% while computer systems stocks, which included the
battered IBM, fell 40%. The gains in one area of technology more than
offset losses in the other. Overall, because technology makes up just 11%
of the index, the sector had only a modest, positive effect on return.
Q. DID THE DOWNSIZING OF IBM CHANGE THE INDEX?
A. Somewhat. As recently as three years ago, IBM was the largest stock in
the index. With a market capitalization of $63 billion, in fact, it was the
largest company in the world. At that point, it represented 3% of the
index. Since the company has contracted, it's now down to 1% of the index.
Exxon is now the largest stock in the index, followed by Wal-Mart, which
climbed from fourth position to second in less than one year.
Q. WHAT FACTORS LIMITED THE STOCK MARKET TO A BELOW-AVERAGE HISTORICAL
RETURN?
A. In the words of last year's presidential campaign, "It's the economy,
stupid!" Remember the soft landing that everyone talked about back in the
late 1980s? Well, we had it. It sounded like a great concept back then, but
a soft landing, it turns out, became a feeble take-off. And that's what
we've seen in the market in the past twelve months. Consumer confidence,
after a modest post-election spike upward, has slipped again. And, the fact
that the market has experienced the lowest volatility in its history in
1992 suggests that there is no clear view of the future. It's interesting:
there's less volatility but greater apparent uncertainty in the stock
market today than three years ago. On top of that, the market appears to be
fully valued. The market's current levels already reflect expectations that
earnings are going to catch up with market valuation. If those gains fail
to materialize, it's a potential source of disappointment. On the other
hand, if earnings rise according to expectations, the market's valuation
levels won't appear to be inflated.
Q. WHAT'S YOUR OUTLOOK FOR THE STOCK MARKET IN THE MONTHS AHEAD?
A. Although the stock market may not be able to continue to deliver the
returns that investors became accustomed to in the '80s, low interest rates
and low inflation continue to favor stocks over other financial
instruments. And, if major foreign economies, many of which are still in
recession, strengthen in the year ahead, the U.S. stock market could get a
related boost. That's because almost half the earnings on the S&P 500 come
from overseas, through multinational companies. For long-term investors who
are willing to accept the risks that come along with investing in stocks,
the U.S. stock market offers not only a way to participate in economic
growth here at home, but also a way to take advantage of the global
recovery.
FIDELITY MARKET INDEX FUND
INVESTMENTS/APRIL 30, 1993
(Showing Percentage of Total Value of Investments)
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - 97.5%
AEROSPACE AND DEFENSE - 1.5%
AEROSPACE AND DEFENSE - 1.1%
Boeing Co. 32,880 $ 1,245,330
General Dynamics Corp. 2,800 267,050
Grumman Corp. 3,200 114,000
Lockheed Corp. 5,860 364,053
Martin Marietta Corp. 4,640 338,720
McDonnell Douglas Corp. 3,750 225,938
Northrop Corp. 4,500 175,500
Rockwell International Corp. 21,200 704,900
3,435,491
DEFENSE ELECTRONICS - 0.4%
E-Systems, Inc. 3,100 125,163
Loral Corp. 3,900 212,550
Raytheon Co. 13,020 756,788
1,094,501
TOTAL AEROSPACE AND DEFENSE 4,529,992
BASIC INDUSTRIES - 7.3%
CHEMICALS AND PLASTICS - 4.2%
Air Products & Chemicals, Inc. 11,120 486,500
Avery Dennison Corp. 5,900 178,475
Dow Chemical Co. 26,570 1,448,065
du Pont (E.I.) de Nemours & Co. 65,430 3,410,539
Engelhard Corp. 6,450 217,688
Ethyl Corp. 11,400 329,175
FMC Corp. (a) 3,400 149,175
First Mississippi Corp. 2,000 20,000
Goodrich (B.F.) Company 2,410 112,668
Grace (W.R.) & Co. 8,800 345,400
Great Lakes Chemical Corp. 7,000 481,250
Hercules, Inc. 4,340 328,755
Minnesota Mining & Manufacturing Co. 21,360 2,376,300
Monsanto Co. 11,920 645,170
Morton International, Inc. 4,800 363,000
NL Industries, Inc. 4,875 24,375
Nalco Chemical Co. 6,880 236,500
PPG Industries, Inc. 10,400 767,000
Praxair, Inc. 12,600 198,450
Quantum Chemical Corp. (a) 3,004 40,179
Raychem Corp. 4,100 169,125
Rohm & Haas Co. 6,500 391,625
Union Carbide Corp. 14,300 278,850
12,998,264
IRON AND STEEL - 0.4%
Armco, Inc. (a) 10,000 $ 72,500
Bethlehem Steel Corp. (a) 8,700 170,738
Inland Steel Industries, Inc. (a) 3,500 79,188
Nucor Corp. 4,300 389,688
USX-U.S. Steel Group 5,860 250,515
Worthington Industries, Inc. 5,750 153,813
1,116,442
NONFERROUS METALS AND MINING - 0.7%
AMAX, Inc. 8,500 143,438
ASARCO, Inc. 4,100 83,538
Alcan Aluminium Ltd. 21,872 397,681
Aluminum Co. of America 8,410 556,111
Cyprus Minerals Co. 4,700 122,200
Inco Ltd. 10,531 239,087
Phelps Dodge Corp. 6,740 306,670
Reynolds Metals Co. 5,740 253,995
2,102,720
PACKAGING AND CONTAINERS - 0.2%
Alltrista Corp. (a) 625 8,281
Ball Corp. 2,500 77,188
Bemis Co., Inc. 4,900 105,963
Crown Cork & Seal Co., Inc. (a) 8,480 324,360
515,792
PAPER AND FOREST PRODUCTS - 1.8%
Boise Cascade Corp. 3,600 91,800
Champion International Corp. 9,100 302,575
Federal Paper Board Co., Inc. 4,000 93,000
Georgia-Pacific Corp. 8,500 567,375
International Paper Co. 11,800 775,850
James River Corp. of Virginia 8,000 166,000
Kimberly-Clark Corp. 15,680 750,680
Louisiana-Pacific Corp. 5,230 381,790
Mead Corp. 5,800 263,175
Potlatch Corp. 2,740 132,548
Scott Paper Co. 7,110 245,295
Stone Container Corp. 6,814 56,216
Temple-Inland, Inc. 5,300 238,500
Union Camp Corp. 6,700 304,013
Westvaco Corp. 6,400 218,400
Weyerhaeuser Co. 19,900 883,063
5,470,280
TOTAL BASIC INDUSTRIES 22,203,498
CONGLOMERATES - 1.3%
Allied-Signal, Inc. 13,850 903,713
Crane Co. 2,900 77,575
Dial Corp. (The) 4,600 177,675
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
CONGLOMERATES - CONTINUED
Harris Corp. 3,900 $ 143,813
ITT Corp. 11,670 956,940
Litton Industries, Inc. (a) 3,840 221,760
Teledyne, Inc. 5,460 104,423
Textron, Inc. 8,500 399,500
Tyco Laboratories, Inc. 4,590 196,223
United Technologies Corp. 12,070 594,448
Whitman Corp. 10,300 146,775
3,922,845
CONSTRUCTION AND REAL ESTATE - 0.6%
BUILDING MATERIALS - 0.3%
Armstrong World Industries, Inc. 3,510 116,269
Masco Corp. 14,700 474,075
Owens-Corning Fiberglas Corp. (a) 4,000 159,500
Sherwin-Williams Co. 8,640 277,560
1,027,404
CONSTRUCTION - 0.1%
Centex Corp. 3,060 87,210
Kaufman & Broad Home Corp. 3,300 55,275
Morrison-Knudsen Corp. 3,000 63,000
PHM Corp. 2,700 75,600
Skyline Corp. 1,000 18,750
299,835
ENGINEERING - 0.2%
EG&G, Inc. 5,520 129,030
Fluor Corp. 7,830 313,200
Foster Wheeler Corp. 3,400 93,500
535,730
TOTAL CONSTRUCTION AND REAL ESTATE 1,862,969
DURABLES - 4.2%
AUTOS, TIRES, AND ACCESSORIES - 3.2%
Chrysler Corp. 33,300 1,373,625
Cooper Tire & Rubber Co. 8,200 280,850
Cummins Engine Co., Inc. 1,600 149,400
Dana Corp. 4,400 217,800
Eaton Corp. 3,440 312,610
Echlin, Inc. 5,700 140,363
Ford Motor Co. 47,350 2,592,413
General Motors Corp. 68,430 2,805,630
Genuine Parts Company 12,125 415,281
Goodyear Tire & Rubber Co. 6,900 514,913
Johnson Controls, Inc. 3,600 174,600
Navistar International Corp. (a) 24,600 61,500
PACCAR, Inc. 3,190 $ 192,995
Pep Boys - Manny, Moe & Jack 5,800 131,225
SPX Corp. 1,300 21,125
Snap-on Tools Corp. 4,200 154,350
TRW, Inc. 6,160 397,320
9,936,000
CONSUMER ELECTRONICS - 0.4%
Black & Decker Corp. 8,200 157,850
Fedders USA, Inc. (a) 1,800 10,350
Maytag Co. 10,400 145,600
Newell Co. 7,500 291,563
Stanley Works 4,500 208,125
Whirlpool Corp. 6,700 365,150
1,178,638
FURNITURE - 0.0%
Bassett Furniture Industries, Inc. 1,200 56,700
TEXTILES AND APPAREL - 0.6%
Hartmarx Corp. (a) 3,000 19,125
Liz Claiborne, Inc. 8,100 283,500
NIKE, Inc. Class B 7,280 495,950
Oshkosh B'Gosh, Inc. Class A 1,500 25,125
Reebok International Ltd. 8,800 322,300
Russell Corp. 3,900 126,263
Springs Industries, Inc. Class A 1,800 79,425
Stride Rite Corp. 5,000 80,625
VF Corp. 6,200 298,375
1,730,688
TOTAL DURABLES 12,902,026
ENERGY - 10.5%
COAL - 0.0%
Eastern Enterprises Co. 2,100 57,488
Pittston Company 3,500 56,000
Westmoreland Coal Co. 700 6,388
119,876
ENERGY SERVICES - 1.0%
Baker Hughes, Inc. 13,400 361,800
Dresser Industries, Inc. 13,240 276,385
Halliburton Co. 10,980 443,318
Helmerich & Payne, Inc. 2,300 69,863
McDermott International, Inc. 5,100 135,788
Rowan Companies, Inc. (a) 7,200 69,300
Schlumberger Ltd. 23,580 1,509,120
2,865,574
OIL AND GAS - 9.5%
Amerada Hess Corp. 8,940 477,173
Amoco Corp. 48,110 2,640,036
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
ENERGY - CONTINUED
OIL AND GAS - CONTINUED
Ashland Oil, Inc. 5,730 $ 149,696
Atlantic Richfield Co. 15,520 1,930,300
Chevron Corp. 33,040 2,845,570
Exxon Corp. 120,660 7,978,643
Kerr-McGee Corp. 4,760 251,685
Louisiana Land & Exploration Co. 2,840 121,055
Maxus Energy Corp. (a) 13,000 117,000
Mobil Corp. 38,650 2,739,319
Occidental Petroleum Corp. 29,300 648,263
Oryx Energy Co. 9,460 212,850
Pennzoil Co. 4,030 251,875
Phillips Petroleum Co. 25,200 733,950
Royal Dutch Petroleum Co. 52,120 4,625,650
Santa Fe Energy Resources, Inc. 8,766 94,235
Sun Company, Inc. 10,380 269,880
Texaco, Inc. 25,040 1,583,780
USX-Marathon Group 27,900 516,150
Unocal Corp. 23,400 716,625
28,903,735
TOTAL ENERGY 31,889,185
FINANCE - 10.9%
BANKS - 5.1%
Banc One Corp. 24,940 1,374,818
BankAmerica Corp. 33,664 1,556,960
Bank of Boston Corp. 8,161 184,643
Bankers Trust New York Corp. 8,150 570,500
Barnett Banks, Inc. 9,800 431,200
Boatmen's Bancshares, Inc. 4,600 270,250
Chase Manhattan Corp. 15,014 456,050
Chemical Banking Corp. 23,967 916,738
Citicorp (a) 35,563 986,873
CoreStates Financial Corp. 5,700 311,363
First Chicago Corp. 7,958 316,331
First Fidelity Bancorporation 7,065 317,042
First Interstate Bancorp 7,210 396,550
First Union Corp. 15,524 717,985
Fleet Financial Group, Inc. 13,162 411,313
Mellon Bank Corp. 5,766 317,130
Morgan (J.P.) & Co., Inc. 18,763 1,261,812
NBD Bancorp, Inc. 15,650 492,975
NationsBank Corp. 23,879 1,184,995
Norwest Corp. 14,100 724,388
PNC Financial Corp. 22,360 715,520
Shawmut National Corp. (a) 9,000 190,125
SunTrust Banks, Inc. 12,200 $ 552,050
U.S. Bancorp 9,650 236,425
Wells Fargo & Co. 5,170 548,020
15,442,056
CREDIT AND OTHER FINANCE - 1.0%
American Express Co. 46,500 1,302,000
Beneficial Corp. 2,600 184,600
Household International, Inc. 4,501 313,945
MBNA Corp. 9,700 230,375
Primerica Corp. 16,050 738,300
Transamerica Corporation 7,550 372,781
3,142,001
FEDERAL SPONSORED CREDIT - 0.9%
Federal Home Loan Mortgage Corporation 17,400 861,300
Federal National Mortgage Association 26,570 2,062,496
2,923,796
INSURANCE - 3.3%
Aetna Life & Casualty Co. 10,630 562,061
Alexander & Alexander Services, Inc. 3,900 100,425
American General Corp. 20,920 622,370
American International Group, Inc. 20,450 2,589,481
CIGNA Corp. 7,020 427,343
CNA Financial Corp. (a) 6,080 585,200
Capital Holding Corp. 9,020 355,727
Chubb Corp. (The) 8,580 766,838
Continental Corp. 5,400 147,825
General Re Corp. 8,140 940,170
Jefferson Pilot Corp. 4,815 254,593
Lincoln National Corp. 4,380 350,948
Marsh & McLennan Companies, Inc. 7,160 640,820
SAFECO Corp. 6,160 356,510
St. Paul Companies, Inc. (The) 4,150 329,925
Torchmark Corp. 7,120 388,930
Travelers Corp. (The) 13,900 382,250
USF&G Corp. 8,300 141,100
USLIFE Corp. 2,080 78,000
10,020,516
SAVINGS AND LOANS - 0.2%
Ahmanson (H.F.) & Co. 11,200 204,400
Golden West Financial Corp. 6,100 266,113
Great Western Financial Corp. 12,785 217,345
687,858
SECURITIES INDUSTRY - 0.4%
Merrill Lynch & Co., Inc. 9,900 696,713
Salomon, Inc. 11,300 412,450
1,109,163
TOTAL FINANCE 33,325,390
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
HEALTH - 8.5%
DRUGS AND PHARMACEUTICALS - 5.7%
ALZA Corp. Class A (a) 7,200 $ 199,800
Allergan, Inc. 6,600 160,875
American Cyanamid Co. 8,850 466,838
American Home Products Corp. 30,360 2,030,325
Amgen, Inc. (a) 13,200 528,000
Bristol-Myers Squibb Co. 50,390 3,029,699
IMCERA Group, Inc. 7,330 199,743
Lilly (Eli) & Co. 28,360 1,403,820
Merck & Co., Inc. 111,490 4,125,130
Pfizer, Inc. 31,940 2,179,905
Schering-Plough Corp. 19,270 1,267,003
Syntex Corporation 21,760 416,160
Upjohn Co. 16,960 504,560
Warner-Lambert Co. 13,040 955,180
17,467,038
MEDICAL EQUIPMENT AND SUPPLIES - 2.6%
Abbott Laboratories 81,220 2,264,008
Bard (C.R.), Inc. 5,200 130,000
Bausch & Lomb, Inc. 5,840 296,380
Baxter International, Inc. 27,000 742,500
Becton, Dickinson & Co. 7,500 259,688
Biomet, Inc. (a) 11,100 116,550
Johnson & Johnson 63,520 2,763,120
McKesson Corp. 3,900 163,313
Medtronic, Inc. 5,700 372,638
Millipore Corp. 2,800 83,300
National Intergroup, Inc. 2,000 26,000
Pall Corp. 11,166 206,571
St. Jude Medical, Inc. 4,700 152,750
U.S. Surgical Corp. 5,300 164,300
7,741,118
MEDICAL FACILITIES MANAGEMENT - 0.2%
Beverly Enterprises, Inc. (a) 7,100 82,538
Community Psychiatric Centers 4,200 39,900
Galen Health Care, Inc. (a) 15,365 182,459
Manor Care, Inc. 5,650 115,825
National Medical Enterprises, Inc. 16,200 125,550
546,272
TOTAL HEALTH 25,754,428
INDUSTRIAL MACHINERY AND EQUIPMENT - 5.6%
ELECTRICAL EQUIPMENT - 3.6%
Corning, Inc. 18,840 664,110
Emerson Electric Co. 21,770 1,243,611
General Electric Co. 82,850 $ 7,508,222
General Signal Corp. 1,980 124,988
Grainger (W.W.), Inc. 5,100 314,288
Honeywell, Inc. 13,280 463,140
Westinghouse Electric Corp. 33,530 507,141
Zenith Electronics Corp. (a) 2,800 18,900
10,844,400
INDUSTRIAL MACHINERY AND EQUIPMENT - 1.3%
Briggs & Stratton Corp. 1,500 94,313
Caterpillar, Inc. 9,730 673,803
Cincinnati Milacron, Inc. 2,600 66,300
Clark Equipment Co. (a) 1,740 47,633
Cooper Industries, Inc. 11,010 513,341
Deere & Co. 7,490 450,336
Dover Corp. 5,460 254,573
Giddings & Lewis, Inc. 3,000 68,625
Harnischfeger Industries, Inc. 2,800 51,450
Illinois Tool Works, Inc. 5,380 384,670
Ingersoll-Rand Co. 10,240 335,360
Interlake, Inc. (a) 2,100 7,613
NACCO Industries, Inc. Class A 800 40,800
Parker-Hannifin Corp. 4,800 142,800
TRINOVA Corp. 2,800 74,900
Tenneco, Inc. 14,370 675,390
Timken Co. 2,870 89,688
Varity Corp. (a) 2,990 101,286
4,072,881
POLLUTION CONTROL - 0.7%
Browning-Ferris Industries, Inc. 16,560 438,840
Ogden Corp. 4,100 93,788
Rollins Environmental Services, Inc. 5,800 44,950
Safety Kleen Corp. 5,525 93,925
Waste Management, Inc. 47,560 1,527,865
Zurn Industries, Inc. 1,110 41,625
2,240,993
TOTAL INDUSTRIAL MACHINERY
AND EQUIPMENT 17,158,274
MEDIA AND LEISURE - 4.5%
BROADCASTING - 0.7%
CBS, Inc. 1,221 278,388
Capital Cities/ABC, Inc. 1,541 811,337
Comcast Corp. Class A 13,200 239,250
Tele-Communications, Inc. Class A (a) 41,400 765,900
2,094,875
ENTERTAINMENT - 0.9%
Disney (Walt) Co. 50,820 2,070,915
King World Productions, Inc. (a) 3,600 118,800
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
MEDIA AND LEISURE - CONTINUED
ENTERTAINMENT - CONTINUED
Paramount Communications, Inc. 11,400 $ 592,800
2,782,515
LEISURE DURABLES AND TOYS - 0.3%
Brunswick Corp. 9,300 125,550
Fleetwood Enterprises, Inc. 4,500 87,188
Hasbro, Inc. 8,350 274,506
Mattel, Inc. 9,212 217,634
Outboard Marine Corp. 1,800 30,600
735,478
LODGING AND GAMING - 0.2%
Bally Manufacturing Corp. (a) 4,500 31,500
Hilton Hotels Corp. 4,540 203,165
Marriott Corp. 9,700 236,438
Promus Companies, Inc. (a) 6,400 256,000
727,103
PUBLISHING - 1.7%
American Greetings Corp. Class A 3,630 196,020
Dow Jones & Co. Inc. 9,900 306,900
Dun & Bradstreet Corp. 17,220 1,007,370
Gannett Co., Inc. 14,050 734,113
Harcourt General, Inc. 7,476 245,774
Knight-Ridder, Inc. 5,380 307,333
McGraw-Hill, Inc. 4,850 295,244
Meredith Corp. 1,400 41,475
New York Times Co. (The) Class A 7,700 221,375
Time Warner, Inc. 36,078 1,149,986
Times Mirror Co., Series A 12,400 396,800
Tribune Co. 6,390 349,853
5,252,243
RESTAURANTS - 0.7%
Luby's Cafeterias, Inc. 2,550 58,331
McDonald's Corp. 35,400 1,703,625
Ryan's Family Steak Houses, Inc. (a) 5,100 43,988
Shoney's, Inc. (a) 4,100 82,000
Wendy's International, Inc. 9,500 125,875
2,013,819
TOTAL MEDIA AND LEISURE 13,606,033
NONDURABLES - 11.5%
BEVERAGES - 3.5%
Anheuser-Busch Companies, Inc. 26,970 1,291,189
Brown-Forman Corp. Class B 2,760 222,870
Coca-Cola Company (The) 127,140 5,022,030
Coors (Adolph) Co. Class B 3,700 $ 64,288
PepsiCo, Inc. 77,260 2,906,908
Seagram Co. Ltd. 36,520 1,094,724
10,602,009
FOODS - 3.4%
Archer-Daniels-Midland Co. 31,767 794,175
Borden, Inc. 13,600 321,300
CPC International, Inc. 14,720 627,440
Campbell Soup Co. 24,380 941,678
ConAgra, Inc. 23,950 589,769
General Mills, Inc. 15,820 1,050,053
Gerber Products Co. 7,300 200,750
Heinz (H.J.) Co. 24,500 900,375
Hershey Foods Corp. 8,660 444,908
Kellogg Co. 23,040 1,330,560
Pet, Inc. 10,500 158,813
Quaker Oats Co. 7,100 462,388
Ralston Purina Co. 10,180 479,733
SYSCO Corp. 18,340 456,208
Sara Lee Corp. 47,100 1,224,600
Wrigley (Wm.) Jr. Company 11,280 363,780
10,346,530
HOUSEHOLD PRODUCTS - 2.9%
Alberto Culver Co. Class B 2,700 68,850
Avon Products, Inc. 6,910 380,914
Clorox Co. 5,360 263,310
Colgate-Palmolive Co. 15,560 929,710
Gillette Company 21,280 1,122,520
International Flavors & Fragrances, Inc. 3,650 409,713
Premark International, Inc. 3,000 146,625
Procter & Gamble Co. 66,060 3,245,198
Rubbermaid, Inc. 15,480 487,620
Unilever NV ADR 15,470 1,751,978
8,806,438
TOBACCO - 1.7%
American Brands, Inc. 19,760 619,970
Philip Morris Companies, Inc. 86,960 4,097,990
UST, Inc. 20,300 586,163
5,304,123
TOTAL NONDURABLES 35,059,100
PRECIOUS METALS - 0.3%
Echo Bay Mines Ltd. 10,300 79,972
Homestake Mining Co. 13,200 216,150
Newmont Mining Corp. 6,560 319,800
Placer Dome, Inc. 23,100 395,035
1,010,957
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
RETAIL AND WHOLESALE - 6.8%
APPAREL STORES - 0.7%
Brown Group, Inc. 1,600 $ 51,600
Charming Shoppes, Inc. 10,000 142,500
Gap, Inc. 14,080 413,600
Genesco, Inc. (a) 2,300 22,138
Limited, Inc. (The) 35,300 781,013
Melville Corp. 10,060 452,700
TJX Companies, Inc. 7,000 210,875
2,074,426
DRUG STORES - 0.2%
Long Drug Stores, Inc. 2,070 69,863
Rite Aid Corporation 8,500 154,063
Walgreen Co. 12,020 456,760
680,686
GENERAL MERCHANDISE STORES - 4.0%
Dayton Hudson Corp. 6,850 488,063
Dillard Department Stores, Inc. Class A 10,960 417,850
K mart Corp. 39,400 891,425
May Department Stores Co. (The) 11,940 828,338
Mercantile Stores Co., Inc. 3,510 121,534
Nordstrom, Inc. 7,900 221,200
Penney (J.C.) Co., Inc. 22,620 974,074
Sears, Roebuck and Co. 33,610 1,760,324
Wal-Mart Stores, Inc. 223,160 5,969,530
Woolworth Corp. 12,640 383,940
12,056,278
GROCERY STORES - 0.7%
Albertson's, Inc. 12,940 714,935
American Stores Co. 6,940 283,673
Bruno's, Inc. 7,500 60,000
Fleming Companies, Inc. 3,510 114,514
Giant Food, Inc. Class A 5,700 145,350
Great Atlantic & Pacific Tea Co., Inc. 3,650 103,113
Kroger Co. (The) (a) 10,200 197,625
Supervalu, Inc. 7,000 221,375
Winn-Dixie Stores, Inc. 7,520 413,600
2,254,185
RETAIL, MISCELLANEOUS - 1.2%
Circuit City Stores, Inc. 9,400 271,425
Handleman Co. 3,300 47,850
Home Depot, Inc. (The) 42,982 1,821,362
Lowe's Companies, Inc. 7,180 218,990
Price Co. (The) (a) 4,570 132,530
Tandy Corp. 6,066 $ 179,705
Toys "R" Us, Inc. (a) 28,325 1,044,484
3,716,346
TOTAL RETAIL AND WHOLESALE 20,781,921
SERVICES - 0.9%
ADVERTISING - 0.0%
Interpublic Group of Companies , Inc. 7,200 201,600
LEASING AND RENTAL - 0.2%
Blockbuster Entertainment Corp. 18,300 322,538
Ryder Systems, Inc. 7,200 199,800
522,338
PRINTING - 0.4%
Alco Standard Corp. 4,600 217,925
Deluxe Corp. 8,100 363,488
Donnelley (R.R.) & Sons Co. 15,320 417,470
Harland (John H.) Co. 3,300 90,338
Moore Corporation Ltd. 9,237 149,792
1,239,013
SERVICES - 0.3%
Block (H&R), Inc. 10,480 362,870
Ecolab, Inc. 3,000 112,125
JWP, Inc. (a) 3,900 10,725
Jostens, Inc. 4,500 84,375
National Education Corp. (a) 3,000 19,875
National Service Industries, Inc. 4,900 129,238
Service Corp. International 7,950 154,031
873,239
TOTAL SERVICES 2,836,190
TECHNOLOGY - 6.4%
COMMUNICATIONS EQUIPMENT - 0.4%
Andrew Corp. (a) 1,700 40,375
DSC Communications Corp. (a) 4,100 138,888
M/A-Com, Inc. (a) 2,400 15,900
Northern Telecom Ltd. 24,000 879,821
Scientific-Atlanta, Inc. 3,650 92,163
1,167,147
COMPUTER SERVICES AND SOFTWARE - 0.9%
Autodesk, Inc. 2,420 98,010
Automatic Data Processing, Inc. 13,560 666,135
Ceridian Corp. 4,100 60,475
Computer Associates International, Inc. 16,200 370,575
Computer Sciences Corp. (a) 1,550 112,763
Lotus Development Corp. (a) 4,100 104,550
Novell, Inc. (a) 29,100 873,000
Oracle Systems Corp. (a) 13,700 488,063
Shared Medical Systems Corp. 2,100 42,788
2,816,359
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
TECHNOLOGY - CONTINUED
COMPUTERS AND OFFICE EQUIPMENT - 2.7%
Amdahl Corp. 10,900 $ 54,500
Apple Computer, Inc. 11,550 591,938
Compaq Computer Corp. (a) 7,460 355,283
Cray Research, Inc. (a) 2,460 71,033
Data General Corp. (a) 3,400 32,725
Digital Equipment Corp. (a) 12,720 554,910
Hewlett-Packard Co. 24,280 1,817,965
Intergraph Corp. (a) 4,700 47,000
International Business Machines Corp. 55,470 2,697,229
Pitney Bowes, Inc. 15,340 621,270
Sun Microsystems, Inc. (a) 9,800 264,600
Tandem Computers, Inc. (a) 10,800 117,450
Unisys Corp. (a) 15,800 185,650
Xerox Corp. 9,150 705,694
8,117,247
ELECTRONIC INSTRUMENTS - 0.1%
Perkin-Elmer Corp. 4,300 147,813
Tektronix, Inc. 3,000 75,750
223,563
ELECTRONICS - 1.8%
AMP, Inc. 10,290 626,404
Advanced Micro Devices, Inc. (a) 8,600 241,875
Intel Corp. 20,290 1,930,086
Motorola, Inc. 26,100 1,905,300
National Semiconductor Corp. (a) 10,300 133,900
Texas Instruments, Inc. 8,080 460,560
Thomas & Betts Corp. 1,760 121,440
5,419,565
PHOTOGRAPHIC EQUIPMENT - 0.5%
Eastman Kodak Co. 31,670 1,543,913
Polaroid Corp. 4,640 157,760
1,701,673
TOTAL TECHNOLOGY 19,445,554
TRANSPORTATION - 1.9%
AIR TRANSPORTATION - 0.4%
AMR Corp. (a) 7,370 494,711
Delta Air Lines, Inc. 4,780 277,838
UAL Corp. (a) 2,440 333,365
USAir Group, Inc. (a) 4,500 94,500
1,200,414
RAILROADS - 1.3%
Burlington Northern, Inc. 8,450 $ 466,863
CSX Corp. 10,100 728,463
Consolidated Rail Corp. 7,640 396,325
Norfolk Southern Corp. 13,740 843,293
Santa Fe Pacific Corp. 17,642 280,067
Union Pacific Corp. 19,840 1,222,640
3,937,651
TRUCKING AND FREIGHT - 0.2%
Consolidated Freightways, Inc. (a) 3,500 59,063
Federal Express Corp. (a) 5,390 260,741
Roadway Services, Inc. 3,800 224,200
Yellow Corp. 2,800 64,400
608,404
TOTAL TRANSPORTATION 5,746,469
UTILITIES - 14.8%
ELECTRIC UTILITY - 5.1%
American Electric Power Co., Inc. 18,000 668,250
Baltimore Gas & Electric Co. 14,050 358,275
Carolina Power & Light Co. 15,700 529,875
Central & South West Corp. 18,380 606,540
Commonwealth Edison Co. 20,600 579,375
Consolidated Edison Co. of New York, Inc. 22,800 806,550
Detroit Edison Company 14,200 498,775
Dominion Resources, Inc. (Va.) 15,910 696,063
Duke Power Co. 19,960 783,430
Entergy Corp. 17,100 607,050
FPL Group, Inc. 17,700 663,750
Houston Industries, Inc. 12,500 575,000
Niagara Mohawk Power Corp. 13,400 301,500
Northern States Power Co. (Minn.) 6,160 279,510
Ohio Edison Co. 14,900 366,913
PSI Resources, Inc. 5,300 125,875
Pacific Gas & Electric Co. 41,500 1,353,938
PacifiCorp 26,100 466,538
Philadelphia Electric Co. 21,500 636,938
Public Service Enterprise Group, Inc. 23,200 791,700
SCEcorp 21,800 1,040,950
Southern Co. 30,800 1,297,450
Texas Utilities Co. 21,380 1,002,188
Union Electric Co. 10,000 391,250
15,427,683
GAS - 0.9%
Arkla, Inc. 11,800 106,200
Coastal Corp. (The) 10,000 273,750
Columbia Gas System, Inc. (The) (a) 4,820 107,245
Consolidated Natural Gas Co. 8,890 444,500
VALUE MATURITY VALUE
SHARES (NOTE 1) AMOUNT (NOTE 1)
COMMON STOCKS - CONTINUED
UTILITIES - CONTINUED
GAS - CONTINUED
ENSERCH Corp. 6,500 $ 121,875
Enron Corp. 11,320 635,335
NICOR, Inc. 5,240 147,375
ONEOK, Inc. 2,500 58,125
Pacific Enterprises (a) 7,380 172,508
Panhandle Eastern Corp. 10,600 227,900
Peoples Energy Corp. 3,300 99,000
Sonat, Inc. 4,080 238,170
Transco Energy Co. 3,900 54,600
Williams Companies, Inc. 4,400 211,750
2,898,333
TELEPHONE SERVICES - 8.8%
American Telephone & Telegraph Co. 129,662 7,261,072
Ameritech Corp. 26,200 2,001,025
Bell Atlantic Corp. 41,950 2,155,181
BellSouth Corp. 48,020 2,545,060
GTE Corp. 90,480 3,245,970
MCI Communications Corp. 25,580 1,195,865
NYNEX Corp. 20,110 1,694,268
Pacific Telesis Group 39,330 1,823,929
Southwestern Bell Corp. 29,160 2,252,610
Sprint Corporation 33,590 1,041,290
U.S. West, Inc. 40,240 1,700,140
26,916,410
TOTAL UTILITIES 45,242,426
TOTAL COMMON STOCKS
(Cost $258,448,773) 297,277,257
PRINCIPAL
AMOUNT
U.S. TREASURY OBLIGATIONS - 0.9%
8%, 8/15/93 $ 300,000 304,173
9%, 11/15/93 550,000 566,758
8 7/8%, 2/15/94 (b) 250,000 260,860
9 1/2%, 10/15/94 (b) 300,000 324,984
8 5/8%, 10/15/95 (b) 1,000,000 1,106,410
8 1/2%, 11/15/95 (b) 100,000 110,531
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $2,699,295) 2,673,716
REPURCHASE AGREEMENTS - 1.6%
Investments in repurchase agreements,
(U.S. Treasury obligations), in a joint
trading account at 2.99% dated
4/30/93 due 5/3/93 $4,997,245 $ 4,996,000
TOTAL INVESTMENTS - 100%
(Cost $266,144,068) $ 304,946,973
LEGEND:
(a) Non-income producing
(b) A portion of the securities were pledged to cover margin requirements
for futures contracts. At the period end, securities pledged amounted to
$1,557,577.
OTHER INFORMATION:
The fund had the following futures contracts open at period end (see Notes
2 and 3 of Notes to Financial Statements):
NUMBER OF AGGREGATE EXPIRATION UNREALIZED
CONTRACTS CONTRACTS FACE VALUE DATE GAIN/LOSS
Purchased:
S&P 500 Index
Futures 35 $7,822,375 June 1993 $(146,350)
INCOME TAX INFORMATION:
At April 30, 1993, the aggregate cost of investment securities for income
tax purposes was $266,150,541. Net unrealized appreciation aggregated
$38,796,432, of which $53,740,026 related to appreciated investment
securities and $14,943,594 related to depreciated investment securities.
The fund hereby designates $183,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
April 30, 1993
ASSETS
Investment in securities, at value (including repurchase agreements of $4,996,000) (cost $266,144,068) $ 304,946,973
(Notes 1 and 2) - See accompanying schedule
Cash 411
Receivable for fund shares sold 332,853
Dividends receivable 567,433
Interest receivable 40,828
Redemption fees receivable (Note1) 10,114
Other receivables 145
Total assets 305,898,757
LIABILITIES
Payable for fund shares redeemed $ 873,226
Accrued management fee 115,226
Payable for daily variation on futures contracts 10,005
Other payables and accrued expenses 1,369
Total liabilities 999,826
NET ASSETS $ 304,898,931
Net Assets consist of:
Paid in capital $ 263,871,074
Undistributed net investment income 215,489
Accumulated undistributed net realized gain (loss) on investments (Note 1) 2,155,813
Net unrealized appreciation (depreciation) on:
Investment securities 38,802,905
Futures contracts (146,350)
NET ASSETS, for 9,283,980 shares outstanding $ 304,898,931
NET ASSET VALUE, offering price and redemption price per share ($304,898,931 (divided by) 9,283,980 shares) $32.84
</TABLE>
STATEMENT OF OPERATIONS
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
Year Ended April 30, 1993
INVESTMENT INCOME $ 7,195,765
Dividends
Interest 718,916
Total income 7,914,681
EXPENSES
Management fee (Note 4) $ 1,199,082
Non-interested trustees' compensation 2,294
Total expenses before 1,201,376
reimbursement
Reimbursement of expenses (Note 5) (26,921) 1,174,455
Net investment income 6,740,226
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1, 2 AND 3)
Net realized gain (loss) on:
Investment securities (46,360)
Futures contracts 2,358,665 2,312,305
Change in net unrealized appreciation (depreciation) on:
Investment securities 13,870,112
Futures contracts (403,200) 13,466,912
Net gain (loss) 15,779,217
Net increase (decrease) in net assets resulting from $ 22,519,443
operations
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
DRAFT
YEARS ENDED APRIL 30,
INCREASE (DECREASE) IN NET ASSETS 1993 1992
<TABLE>
<CAPTION>
<S> <C> <C>
Operations $ 6,740,226 $ 4,822,551
Net investment income
Net realized gain (loss) on investments 2,312,305 20,338
Change in net unrealized appreciation (depreciation) on investments 13,466,912 17,813,387
Net increase (decrease) in net assets resulting from operations 22,519,443 22,656,276
Distributions to shareholders from: (6,696,837) (4,788,174)
Net investment income
Net realized gain - (376,435)
Share transactions 130,822,814 161,060,109
Net proceeds from sales of shares
Reinvestment of distributions from: 6,448,141 4,687,031
Net investment income
Net realized gain - 374,810
Cost of shares redeemed (77,810,587) (66,128,017)
Redemption fees (Note 1) 62,997 136,170
Net increase (decrease) in net assets resulting from share transactions 59,523,365 100,130,103
Total increase (decrease) in net assets 75,345,971 117,621,770
NET ASSETS
Beginning of period 229,552,960 111,931,190
End of period (including undistributed net investment income of $215,489 and $172,100, respectively)$ 304,898,931 $ 229,552,960
OTHER INFORMATION
Shares
Sold 4,094,013 5,490,178
Issued in reinvestment of distributions from: 201,211 161,356
Net investment income
Net realized gain - 13,283
Redeemed (2,430,144) (2,235,277)
Net increase (decrease) 1,865,080 3,429,540
</TABLE>
PER-SHARE DATA AND RATIOS
Selected data for a share outstanding throughout each period:
DRAFT
MARCH 6, 1990
(COMMENCEMENT OF
YEARS ENDED APRIL 30, OPERATIONS) TO
1993 1992 1991 APRIL 30, 1990
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Investment income $ .95 $ .92 $ .82 $ .14
Expenses (dagger) .14 .10 .06 .01
Net investment income .81 .82 .76 .13
Distributions from net investment income (.81) (.83) (.85) -
Net realized and unrealized gain (loss) on investments 1.89 2.94 3.49 (.57)
Redemption fees .01 .02 .08 .02
Distributions from net realized gain on investments - (.07) - -
Increase (decrease) in net asset value 1.90 2.88 3.48 (.42)
Net asset value 30.94 28.06 24.58 25.00
Beginning of period
End of period $ 32.84 $ 30.94 $ 28.06 $ 24.58
Expenses borne by the investment adviser (dagger) $ - $ .03 $ .04 $ .01
Ratio of net investment income to average net assets 2.54% 2.84% 3.52% 3.41%*
Ratio of expenses to average net assets (dagger) .44% .35% .28% .28%*
Ratio of expenses to average net assets before voluntary expense limitation (dagger) .45% .45% .45% .45%*
Portfolio turnover rate 0% 1% 1% 0%
Shares outstanding at end of period (000 omitted) 9,284 7,419 3,989 601
</TABLE>
* ANNUALIZED
(dagger) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
