FIDELITY
(Registered trademark)
CONTRAFUND
ANNUAL REPORT
DECEMBER 31, 1993
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the last six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 35 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 39 Footnotes to the financial
statements.
REPORT OF INDEPENDENT 44 The auditor's opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider adding to your tax-free investments, either municipal bonds
or municipal bond funds. Often these can provide higher after-tax yields
than comparable taxable investments. For example, if you're in the new 36%
federal income tax bracket and invest $10,000 in a taxable investment
yielding 7%, you'll pay $252 in federal taxes and receive $448 in income.
That same $10,000 invested in a tax-free bond fund yielding 5.5% would
allow you to keep $550 in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage of change in value, the average annual
percentage change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Contrafund 21.43% 224.37% 408.62%
Contrafund (incl. 3% sales charge) 17.78% 214.64% 393.36%
S&P 500(Registered trademark) 10.08% 97.26% 302.35%
Average Growth Fund 10.61% 99.76% 234.70%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one, five, or 10 years. For example, if
you had invested $1,000 in a fund that had a 5% return over the past year,
you would have $1,050. You can compare these figures to the performance of
the Standard & Poor's 500 Composite Stock Price Index - a common proxy
for the U.S. stock market. You can also compare them to the average growth
fund, which reflects the performance of over 488 growth funds tracked by
Lipper Analytical Services. Both benchmarks include reinvested dividends
and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Contrafund 21.43% 26.53% 17.66%
Contrafund (incl. 3% sales charge) 17.78% 25.77% 17.30%
S&P 500(Registered trademark) 10.08% 14.55% 14.94%
Average Growth Fund 10.61% 14.51% 12.38%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
Contrafund (022) S&P 500
12/31/83 9700.01 10000.00
01/31/84 9315.36 9944.00
02/29/84 8511.09 9593.97
03/31/84 8484.58 9759.95
04/30/84 8396.20 9852.67
05/31/84 7998.48 9306.83
06/30/84 8122.21 9508.79
07/31/84 7689.15 9390.88
08/31/84 8758.56 10428.57
09/30/84 8758.56 10430.66
10/31/84 8714.37 10471.34
11/30/84 8652.50 10354.06
12/31/84 8897.59 10627.40
01/31/85 9744.54 11455.28
02/28/85 9808.29 11596.18
03/31/85 9890.26 11604.30
04/30/85 9780.97 11593.85
05/31/85 9972.22 12263.98
06/30/85 10035.97 12456.52
07/31/85 10145.25 12437.84
08/31/85 10336.50 12332.11
09/30/85 9817.40 11946.12
10/31/85 10345.61 12498.03
11/30/85 10892.03 13355.39
12/31/85 11305.65 14001.80
01/31/86 11407.92 14080.21
02/28/86 12529.40 15133.40
03/31/86 13088.30 15977.85
04/30/86 12844.41 15797.30
05/31/86 13169.59 16637.72
06/30/86 13108.62 16918.89
07/31/86 12143.26 15973.13
08/31/86 12935.87 17158.33
09/30/86 12163.58 15739.34
10/31/86 12976.52 16647.50
11/30/86 12976.52 17052.03
12/31/86 12811.28 16617.21
01/31/87 14660.92 18855.54
02/28/87 15557.31 19600.34
03/31/87 15815.23 20166.79
04/30/87 15850.40 19987.30
05/31/87 15991.09 20161.19
06/30/87 16577.27 21179.33
07/31/87 17386.20 22253.12
08/31/87 18019.28 23083.17
09/30/87 17655.85 22577.65
10/31/87 12556.05 17714.42
11/30/87 11864.35 16254.75
12/31/87 12567.77 17491.74
01/31/88 13376.71 18228.14
02/29/88 13986.34 19077.57
03/31/88 14009.79 18488.08
04/30/88 14291.15 18693.29
05/31/88 14091.85 18855.92
06/30/88 14771.82 19721.41
07/31/88 14877.34 19646.47
08/31/88 14549.07 18978.49
09/30/88 15146.98 19786.97
10/31/88 15545.59 20337.05
11/30/88 15428.35 20046.23
12/31/88 15209.80 20397.04
01/31/89 16219.78 21890.10
02/28/89 16123.59 21345.04
03/31/89 16977.27 21842.38
04/30/89 18071.41 22976.00
05/31/89 19009.25 23906.53
06/30/89 18889.01 23770.26
07/31/89 20620.41 25916.71
08/31/89 21209.56 26424.68
09/30/89 21618.36 26316.34
10/31/89 20969.09 25705.80
11/30/89 21450.03 26230.20
12/31/89 21773.12 26859.73
01/31/90 20618.29 25057.44
02/28/90 21046.49 25380.68
03/31/90 21500.64 26053.27
04/30/90 21280.05 25401.94
05/31/90 23291.27 27878.62
06/30/90 23589.71 27689.05
07/31/90 23148.54 27600.44
08/31/90 21344.93 25105.36
09/30/90 20449.61 23882.73
10/31/90 20553.41 23780.04
11/30/90 21773.12 25316.23
12/31/90 22630.13 26022.55
01/31/91 24834.44 27157.13
02/28/91 26712.68 29098.87
03/31/91 28277.87 29803.06
04/30/91 28434.39 29874.59
05/31/91 30247.41 31165.17
06/30/91 28551.78 29737.81
07/31/91 30573.50 31123.59
08/31/91 32112.60 31861.22
09/30/91 32203.91 31329.13
10/31/91 33129.98 31748.94
11/30/91 31382.18 30469.46
12/31/91 35058.25 33955.17
01/31/92 36057.96 33323.60
02/29/92 37228.09 33756.81
03/31/92 36217.75 33098.55
04/30/92 36610.66 34071.65
05/31/92 37003.57 34238.60
06/30/92 36105.49 33728.44
07/31/92 37017.60 35107.94
08/31/92 36330.01 34388.23
09/30/92 36947.44 34794.01
10/31/92 37775.36 34915.79
11/30/92 39599.57 36106.41
12/31/92 40630.38 36550.52
01/31/93 41917.18 36857.55
02/28/93 42193.72 37358.81
03/31/93 44210.06 38147.08
04/30/93 44508.77 37223.92
05/31/93 46271.20 38221.52
06/30/93 46286.14 38332.36
07/31/93 46793.96 38179.04
08/31/93 49064.20 39626.02
09/30/93 49168.75 39320.90
10/31/93 49601.89 40134.84
11/30/93 47734.91 39753.56
12/31/93 49335.92 40234.58
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity
Contrafund on December 31, 1983, and paid a 3% sales charge. As the chart
shows, by December 31, 1993, the value of your investment would have grown
to $49,336 - a 393.36% increase on your initial investment. For comparison,
look at how the S&P 500 did over the same period. With dividends
reinvested, the same $10,000 investment would have grown to $40,235 - a
302.35% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
DISTRIBUTIONS
The Board of Trustees of Fidelity <FUND> voted to pay on February 7,
1994, to shareholders of record at the opening of business on February 4,
1994, a distribution of $___ derived from capital gains realized from sales
of portfolio securities.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF DECEMBER 31, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
International Business Machines
Corp. 1.8 -
Citicorp 1.0 .5
British Petroleum PLC ADR 1.0 .4
United Technologies Corp. 1.0 -
Philip Morris Companies, Inc. .9 -
Anadarko Petroleum Corp. .9 .3
Lotus Development Corp. .9 .5
Columbia Healthcare Corp. .8 -
Ford Motor Co. .8 .3
Caterpillar, Inc. .8 .5
TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Technology 11.1 16.2
Energy 10.0 16.3
Media & Leisure 8.4 6.8
Health 7.2 1.8
Basic Industries 5.6 2.4
ASSET ALLOCATION
AS OF DECEMBER 31, 1993 * AS OF JUNE 30, 1993 *
Row: 1, Col: 1, Value: 19.1
Row: 1, Col: 2, Value: 1.5
Row: 1, Col: 3, Value: 40.1
Row: 1, Col: 4, Value: 40.0
Row: 1, Col: 1, Value: 15.9
Row: 1, Col: 2, Value: 1.5
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 4, Value: 43.3
Stocks 80.1%
Bonds 0.8%
Short-term and
other investments 19.1%
Stocks 83.3%
Bonds 0.8%
Short-term and
other investments 15.9%
* FOREIGN
INVESTMENTS 18.2%
* FOREIGN
INVESTMENTS 13.5%
INVESTMENTS DECEMBER 31, 1993
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 79.3%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 1.4%
AEROSPACE & DEFENSE - 0.5%
Alliant Techsystems, Inc. (a) 172,800 $ 5,119 01880410
Greenwich Air Services, Inc. (a) 1,000 8 39678110
Martin Marietta Corp. 115,000 5,118 57290010
McDonnell Douglas Corp. 18,500 1,980 58016910
Precision Castparts Corp. 32,300 937 74018910
Sturm Ruger & Co., Inc. 638,900 15,892 86415910
Thiokol Corp. 102,500 2,716 88410310
31,770
DEFENSE ELECTRONICS - 0.9%
ESCO Electronics Corp. (trust receipt) (a)(e) 604,600 7,784 26903020
E-Systems, Inc. 12,600 547 26915730
Flir Systems, Inc. (a) 154,100 1,503 30244510
Loral Corp. 1,075,000 40,581 54385910
Tech-Sym Corp. (a) 242,600 5,186 87830810
Tracor, Inc. (a) 10,000 90 89234920
Trimble Navigation Ltd. (a) 12,200 108 89623910
55,799
TOTAL AEROSPACE & DEFENSE 87,569
BASIC INDUSTRIES - 5.6%
CHEMICALS & PLASTICS - 1.8%
Akzo NV Ord. 137,700 13,303 01019910
Cabot Corp. 206,000 11,098 12705510
Cambrex Corp. 370,200 7,404 13201110
Foamex International, Inc. (a) 355,000 6,035 34412310
GEON 223,300 5,275 37246W10
Georgia Gulf Corp. (a) 182,400 4,081 37320020
Hanna (M.A.) Co. 184,400 6,016 41052210
IMC Fertilizer Group, Inc. 30,585 1,388 44966910
Monsanto Co. 285,200 20,927 61166210
Sealed Air Corp. (a) 20,000 633 81211510
Terra Industries, Inc. (a) 458,800 3,498 88091510
Union Carbide Corp. 1,285,000 28,752 90558110
Vigoro Corp. 200,600 6,068 92675410
114,478
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
IRON & STEEL - 0.9%
Allegheny Ludlum Industries, Inc. 210,900 $ 5,035 01690010
Geneva Steel Class A (a) 97,100 1,651 37225210
Inland Steel Industries, Inc. (a) 255,400 8,460 45747210
Iscor Ltd. (a) 604,100 346 46499C22
LTV Corp. 492,100 7,935 50192110
Mueller Industries, Inc. (a) 350,800 12,453 62475610
Nucor Corp. 310,000 16,430 67034610
52,310
METALS & MINING - 0.4%
Alcan Aluminium Ltd. 220,000 4,619 01371610
Inco Ltd. 100,000 2,686 45325840
Noranda, Inc. 235,000 4,600 65542210
Phelps Dodge Corp. 50,000 2,437 71726510
Wolverine Tube, Inc. (a) 381,000 7,525 97809310
21,867
PAPER & FOREST PRODUCTS - 2.5%
Abitibi-Price Inc. 100,000 1,182 00368010
Domain Industries Ltd, Class B (non-vtg.) Series 2 300,000 4,227
25703930
Domtar Inc. (a) 1,311,100 8,307 25756110
Fletcher Challenge Canada Ltd. Class A 232,307 3,625 33932D10
Georgia-Pacific Corp. 250,000 17,187 37329810
IP Timberlands, Ltd. Class A 8,600 229 44984210
International Forest Products Class A (a) 600,400 9,766 45953E10
International Paper Co. 300,000 20,325 46014610
Longview Fibre Co. 454,300 10,279 54321310
Louisiana-Pacific Corp. 301,900 12,453 54634710
Metsa Serla B 246,000 9,889 59299992
Noranda Forest, Inc. 160,000 1,453 65542L10
Plum Creek Timber Co. LP (depositary unit) 83,900 2,192 72923710
Pope & Talbot, Inc. 97,300 2,797 73282710
Repola OY 723,200 11,242 75999A92
Riverside Forest Products 90,000 1,958 76890410
St. Joe Paper Co. 4,600 233 79016110
Scott Paper Co. 45,000 1,851 80987710
Slocan Forest Products Ltd. 353,800 8,934 83158C10
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS - CONTINUED
Temple-Inland, Inc. 327,500 $ 16,498 87986810
Timberwest Forest Ltd. (a)(f) 200,000 2,572 88690820
Union Camp Corp. 206,000 9,811 90553010
Willamette Industries, Inc. 26,700 1,322 96913310
158,332
TOTAL BASIC INDUSTRIES 346,987
CONGLOMERATES - 2.0%
CONGLOMERATES - 2.0%
Alexander & Baldwin, Inc. 10,000 268 01448210
Allied-Signal, Inc. 108,100 8,540 01951210
Canadian Pacific Ltd. Ord. 1,074,000 17,571 13644030
ITT Corp. 254,000 23,177 45067910
Litton Industries, Inc. (a) 100,000 6,438 53802110
Textron, Inc. 110,000 6,408 88320310
United Technologies Corp. 1,000,000 62,000 91301710
124,402
CONSTRUCTION & REAL ESTATE - 3.0%
BUILDING MATERIALS - 0.9%
Armstrong World Industries, Inc. 672,300 35,800 04247610
Lafarge Corp. 323,800 7,407 50586210
Lilly Industrial Coatings, Inc. Class A 175,400 4,210 53249110
Medusa Corp. 16,900 547 58507230
Southdown, Inc. (a) 99,600 2,440 84129710
Tecumseh Products Co. Class A 183,500 8,487 87889520
USG Corp. (a) 10,000 292 90329340
59,183
CONSTRUCTION - 1.5%
Butler Manufacturing Co. (Del) (a) 15,300 415 12365510
Centex Corp. 145,100 6,094 15231210
Clayton Homes, Inc. (a) 165,875 4,022 18419010
Continental Homes Holding Corp. (e) 400,600 9,214 21148C10
Kaufman & Broad Home Corp. (a) 260,000 6,175 48616810
Oakwood Homes Corp. 395,100 10,668 67409810
Pulte Corp. 173,800 6,300 74586710
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
CONSTRUCTION - CONTINUED
Redman Industries (a) (e) 376,700 $ 7,628 75764210
Schuler Homes, Inc. (a) 856,100 23,971 80818810
Southern Energy Homes, Inc. (a) 166,000 3,133 84281410
Standard Pacific Corp. 434,300 4,832 85375C10
Toll Brothers, Inc. (a) 463,600 7,939 88947810
90,391
ENGINEERING - 0.2%
CBI Industries, Inc. 215,300 6,540 12480010
Corrpro Companies, Inc. (a) 12,000 232 22031710
Insituform Mid-America, Inc. Class A 160,000 2,240 45766H10
Rust International, Inc. (a) 10,000 228 78307510
SNC Group, Inc. Class A 95,000 1,348 78460T10
10,588
REAL ESTATE - 0.0%
Hovnanian Enterprises, Inc. Class A (a) 133,900 2,025 44248720
REAL ESTATE INVESTMENT TRUSTS - 0.4%
Equity Residential Property Trust, shares beneficial interest 85,000
2,709 29476L10
Manufactured Home Community 122,800 5,281 56468210
McArthur/Glen Realty Corp. (a) 85,800 2,091 57918810
Nationwide Health Properties, Inc 22,900 813 63862010
Simon Properties Group, Inc. (a) 539,000 12,195 82880510
23,089
TOTAL CONSTRUCTION & REAL ESTATE 185,276
DURABLES - 5.3%
AUTOS, TIRES, & ACCESSORIES - 3.2%
Chrysler Corp. 650,100 34,618 17119610
Custom Chrome, Inc. (a) 116,900 2,601 23190510
Echlin, Inc. 80,000 2,660 27874910
Federal-Mogul Corp. 380,000 11,020 31354910
Ford Motor Co. 795,200 51,290 34537010
General Motors Corp. 685,000 37,589 37044210
Goodyear Tire & Rubber Co. 900,000 41,175 38255010
Jason, Inc. (a) 95,000 1,259 47117110
Smith (A.O.) Corp. Class B 96,900 3,464 83186520
Spartan Motors, Inc. 88,050 1,497 84681910
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES - CONTINUED
Titan Wheel International, Inc. (a) 76,800 $ 1,958 88832810
Wabash National Corp. 266,600 9,065 92956610
198,196
CONSUMER ELECTRONICS - 0.3%
Aktiebolaget Electrolux 346,000 11,778 01019810
Fedders USA Inc. (a) 223,600 1,425 31313510
Harman International Industries, Inc. (a) 163,000 4,686 41308610
Whirlpool Corp. 71,500 4,755 96332010
22,644
HOME FURNISHINGS - 0.4%
Ethan Allen Interiors, Inc. (a) 119,900 3,747 29760210
Haverty Furniture Companies, Inc.(e) 530,300 9,081 41959610
Haverty Furniture Companies, Inc. Class A 52,350 877 41959620
Miller (Herman), Inc. 60,100 1,841 60054410
Rhodes, Inc. (a) 449,000 7,521 76235P10
Rowe Furniture Corp. 16,200 344 77952810
23,411
TEXTILES & APPAREL - 1.4%
Donnkenny, Inc. (Del.) (a) (e) 328,300 6,149 25800610
Forstmann & Co., Inc. (a) (e) 281,400 3,236 34659270
Haggar Corp. 20,000 510 40517310
Kellwood Co. 224,800 9,020 48804410
Mohawk Industries, Inc. (a) 201,400 6,898 60819010
Nantucket Industries, Inc. (a)(e) 165,000 1,072 63018310
Nine West Group, Inc. (a) 958,500 28,276 65440D10
Orbit Instrument Corp. (a) 306,100 1,416 68555910
Oshkosh B'Gosh, Inc. Class A 113,400 2,211 68822220
Stride Rite Corp. 814,000 13,329 86331410
Tandy Brands Accessories, Inc. (a) 172,300 3,403 87537810
Unifi, Inc. 309,100 8,307 90467710
Vista Resources, Inc. (a) 113,000 2,444 92838410
Westpoint Stevens, Inc. Class A (a) 10,000 188 96123810
86,459
TOTAL DURABLES 330,710
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - 10.0%
ENERGY SERVICES - 2.0%
Chiles Offshore Corp. (a) 1,234,000 $ 6,170 16888710
Energy Service, Inc. (a) 7,516,900 24,430 29271910
Global Marine, Inc. (a) 4,420,700 18,235 37935240
Halliburton Co. 200,000 6,375 40621610
Marine Drilling Companies, Inc. (a) 1,248,800 7,180 56824020
Nabors Industries, Inc. (a) 894,700 7,046 62956810
Nowsco Well Service Ltd. 361,000 5,189 67012210
Offshore Logistics, Inc. (a) 430,000 5,912 67625510
Offshore Pipelines, Inc. (a)(e) 631,100 9,940 67626910
Rowan Companies, Inc. (a) 165,900 1,493 77938210
Schlumberger Ltd. 200,000 11,825 80685710
Smith International, Inc. (a) 547,300 4,789 83211010
Tuboscope Vetco Corp. (a) 469,200 2,874 89860010
Weatherford International, Inc. (a) 787,500 8,367 94707610
Wheatley TXT Corp. 60,000 683 96271810
120,508
OIL & GAS - 8.0%
Amerada Hess Corp. 390,900 17,639 02355110
Anadarko Petroleum Corp. 1,211,400 54,967 03251110
Anderson Exploration Ltd. (a) 101,000 2,207 03390110
Apache Corp. 13,000 304 03741110
Ashland Oil, Inc. 135,900 4,638 04454010
Beau Canada Exp. 1,946,300 3,461 07428010
Benton Oil & Gas Co. (a) 455,000 2,275 08328810
Blue Range Resource Corp. Class A (a) 290,500 2,143 09579K10
British Borneo Petroleum 240,800 697 11099D22
British Petroleum PLC ADR 985,900 63,098 11088940
Brown Tom, Inc. (a) (e) 883,300 9,937 11566020
Burlington Resources, Inc. 680,000 28,815 12201410
Cabot Oil & Gas Corp. Class A 307,800 6,502 12709710
Cabre Exploration Ltd. (a) 76,600 797 12690610
Canadian Natural Resources Ltd. (a) 2,446,300 33,315 13638510
Chauvco Resources Ltd. Class A (a) 500,000 6,526 16260010
Clyde Petroleum (a) 5,100,000 3,465 18958499
DEKALB Energy Corp. Class B (a) 102,500 1,409 24487410
Encal Energy Ltd. (a) 535,000 1,842 29250D10
Enron Oil & Gas Co. 155,300 6,057 29356210
Excel Energy, Inc. (a) 76,600 319 30065410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Grad & Walker Energy Corp.(e) 636,100 $ 6,016 38391010
HS Resources, Inc. (a)(e) 623,000 13,083 40429710
Horsham Corp. 1,024,000 15,010 44090710
Intensity Resources Ltd. (a) 988,700 2,020 45816E10
Inverness Petroleum Ltd. (a) 986,000 7,273 46190810
Jordan Petroleum Ltd. Class A (a) 472,800 3,219 48076110
Kerr-McGee Corp. 124,900 5,636 49238610
Louis Dreyfus Natural Gas Corp. (a) 192,900 3,086 54601110
Louisiana Land & Exploration Co. 39,800 1,597 54626810
Mitchell Energy & Development Corp. Class A 57,700 1,255 60659220
Murphy Oil Corp. 726,500 29,060 62671710
Newfield Exploration Co. (a) 70,600 1,244 65129010
Noble Affiliates, Inc. 667,300 17,683 65489410
Norsk Hydro AS ADR (a) 113,600 3,181 65653160
Northrock Resources Ltd. (a) 518,300 2,990 66679810
Northstar Energy Corp. (a) 378,000 7,436 66703R10
Nuevo Energy Corporation (a) 116,800 2,278 67050910
Paramount Resources Ltd. (a) 142,000 2,108 69932010
Parker & Parsley Petroleum Co. 380,500 9,417 70101810
Petromet Resources Ltd. Ord. (a) 668,600 3,162 71673110
Phillips Petroleum Co. 525,000 15,225 71850710
Pinnacle Resources Ltd. (a) 350,000 4,766 72348R10
Poco Petroleums Ltd. (a) 291,700 1,959 73036110
Renaissance Energy Ltd. (a) 936,600 20,018 75966610
Rio Alto Exploration Ltd. (a) 1,738,300 10,850 76689210
Sceptre Resources Ltd. 479,600 4,626 80621470
Snyder Oil Corp. 115,600 2,052 83348210
Summit Resources Ltd. 322,000 2,101 86624610
Sun Company, Inc. 49,200 1,445 86676210
Tarragon Oil & Gas Ltd. (a) 515,000 6,721 87629E20
Tri Link Resources Ltd. Class A (a) 85,000 900 89557D10
United Meridian Corp. (a) 85,300 1,162 91086510
Unocal Corp. 1,250,000 34,844 91528910
Vintage Petroleum, Inc. 390,900 7,085 92746010
500,921
TOTAL ENERGY 621,429
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - 2.9%
BANKS - 2.2%
Allied Irish Bank 3,500,000 $ 15,043 01908810
Bank International Indonesia Ord. (a) 1,000,000 4,902 06199B92
Bank of New York Co., Inc. 31,000 1,767 06405710
Bank South Corp. 268,300 4,091 06506810
Citicorp (a) 1,755,000 64,496 17303410
Dresdner Bank AG Ord. 40,000 10,655 26156110
HUBCO, Inc. 155,940 3,508 40438210
Integra Financial Corp. 247,900 10,660 45810410
Liberty Bancorporation, Inc. 12,100 339 53017510
National Westminster Bank PLC Ord. 900,000 8,242 63853930
North Fork Bancorporation, Inc. (a) 116,800 1,504 65942410
Shawmut National Corp. 102,000 2,218 82048410
Signet Banking Corp. 1,031 36 82668110
Westpac Banking Corp. 3,274,200 10,294 96121410
137,755
CLOSED END INVESTMENT COMPANY - 0.3%
Free State Consolidated Gold Mines Ltd. ADR 276,800 4,706 35614220
Korea Fund, Inc. (a) 50,000 1,200 50063410
Orange Free State Investments Ltd. ADR 228,400 10,050 68486520
15,956
CREDIT & OTHER FINANCE - 0.3%
Argentaria Corp. Bancaria de Esp. (a) 327,525 13,819 21991392
Gencor Ltd. (Reg.) (a) 1,700,000 3,428 36868193
Mercer International, Inc. SBI (a) 185,000 2,613 58805610
Mercury Finance Co. 13,800 264 58939510
20,124
SAVINGS & LOANS - 0.1%
Crossland Federal Savings Bank, Brooklyn, NY (a) 200,000 5,600 22764B10
Progressive Bancorporation Inc. 21,200 350 74331310
Standard Federal Bank 100,000 3,000 85338910
8,950
TOTAL FINANCE 182,785
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - 7.2%
DRUGS & PHARMACEUTICALS - 3.5%
Astra A Free 1,000,000 $ 22,772 04632292
COR Therapeutics, Inc. (a) 235,400 3,560 21775310
Cellpro, Inc. (a) 453,900 15,773 15115610
Celtrix Laboratories, Inc. (a) 245,000 2,695 15118610
Chiron Corp. (a) 285,000 23,940 17004010
Cocensys, Inc. (a) 36,500 146 19126310
Collagen Corp. (a) 25,000 694 19419410
Cytotheraputics, Inc. (a) 196,300 2,405 23292310
Elan PLC ADR (a) 676,700 28,675 28413120
Genentech, Inc. (a) 346,200 17,483 36871020
Genetics Institute, Inc. (depositary share) 30,700 1,481 37185530
Magainin Pharmaceuticals, Inc. (a) 247,000 3,396 55903610
Merck & Co., Inc. 1,107,468 38,069 58933110
Nature's Bounty, Inc. (a)(e) 10,000 208 63901730
Perspective Biosystems, Inc. (a) 109,800 3,157 71527110
Pfizer, Inc. 547,900 37,805 71708110
Protein Design Labs, Inc. (a) 169,700 4,115 74369L10
Repligen Corp. (a) 150,000 1,031 75991610
Rexall Sundown, Inc. (a) 20,000 300 76164810
Schering-Plough Corp. 130,000 8,905 80660510
Sciclone Pharmaceuticals, Inc. (a) 107,600 2,475 80862K10
219,085
MEDICAL EQUIPMENT & SUPPLIES - 1.2%
Cardinal Distribution, Inc. 432,300 20,534 14148710
Cordis Corp. (a) 173,300 8,557 21852510
FoxMeyer Corp. 225,600 2,566 35165410
Herbalife International, Inc. 10,000 177 42690810
Kendall International, Inc. (a) 40,000 1,840 48875110
Kirschner Medical Corp. (a) 30,000 195 49766010
Maxxim Medical, Inc. (a) 48,900 984 57777G10
McKesson Corp. 40,200 2,171 58155610
Medtronic, Inc. 310,000 25,459 58505510
Owens & Minor, Inc. 35,300 812 69073010
Patterson Dental Co. (a) 176,200 5,727 70341210
Sybron Corp. (a) 75,300 2,410 87114F10
Thermedics, Inc. (a) 55,750 843 88390110
72,275
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - 2.5%
Abbey Healthcare Group, Inc. (a) 173,200 $ 4,806 00278610
America Medical Holdings, Inc. (a) 20,000 383 02742810
Columbia Healthcare Corp. 1,584,965 52,700 19767910
HEALTHSOUTH Rehabilitation Corp. (a) 505,700 12,769 42192410
Health Management Associates, Inc. Class A (a) 940,450 27,508 42193310
Homecare Management, Inc. (a) 320,000 4,360 43738620
Lincare Holdings, Inc. (a) 200,300 4,982 53279110
Multicare Companies, Inc. (a) 80,800 1,475 62543V10
Rehabcare Corp. (a)(e) 227,000 2,554 75914810
U.S. Healthcare, Inc. 571,700 32,944 91191010
United HealthCare Corp. 200,000 15,175 91058110
Universal Health Services, Inc. Class B (a) 3,500 72 91390310
159,728
TOTAL HEALTH 451,088
INDUSTRIAL MACHINERY & EQUIPMENT - 2.3%
ELECTRICAL EQUIPMENT - 0.7%
BMC Industries, Inc. (a) 127,400 2,691 05560710
California Microwave Corp. (a) 1,400 34 13044210
General Electric Co. 125,000 13,109 36960410
Itel Corp. (a) 77,500 2,170 46564210
Philips NV (a) 775,000 15,985 71833750
Roper Industries, Inc. 195,600 6,357 77669610
Willcox & Gibbs, Inc. (a) 360,300 2,792 96920710
Yurtec Corp. (a) 16,650 381 97299492
43,519
INDUSTRIAL MACHINERY & EQUIPMENT - 1.2%
Astec Industries, Inc. (a) 419,100 6,444 04622410
Bearings, Inc. 400 11 07400520
CMI Corp. Oklahoma Class A 785,300 5,399 12576130
Caterpillar, Inc. 550,000 48,950 14912310
Dover Corp. 36,000 2,187 26000310
FSI International, Inc. (a) 10,000 120 30263310
Indresco, Inc. (a) 304,000 4,712 45590510
JLG Industries, Inc. 15,000 371 46621010
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Park-Ohio Industries, Inc. (a) 343,200 $ 4,419 70067710
Regal-Beloit Corp. 80,500 2,123 75875010
TRINOVA Corp. 42,600 1,337 89667810
76,073
POLLUTION CONTROL - 0.4%
Allied Waste Industries, Inc. (a) 20,000 105 01958930
Envirotest Systems Corp. (a) 12,000 258 29409W10
Harding Associates, Inc. (a) 38,800 349 41226410
OHM Corp.(a) 1,353,500 15,734 67083910
Sanifill, Inc. (a) 127,400 2,771 80101810
TRC Companies, Inc. (a) 20,000 215 87262510
United Waste Systems, Inc. (a) 347,400 5,385 91317410
24,817
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 144,409
MEDIA & LEISURE - 8.4%
BROADCASTING - 3.7%
Adelphia Communications Class A (a) 32,000 600 00684810
BET Holdings, Inc. Class A (a) 20,000 395 08658510
Broadcasting Partners, Inc. Class A (a)(e) 439,200 6,917 11131910
CBS, Inc. 60,000 17,310 12484510
Capital Cities/ABC, Inc. 60,000 37,170 13985910
Clear Channel Communications, Inc. (a) 464,000 21,344 18450210
Comcast Corp. Class A (special) 339,800 12,233 20030020
EZ Communications, Inc. (a) 294,200 4,634 26928810
Heritage Media Corp. Class A (a) 762,800 15,161 42724120
Home Shopping Network, Inc. 1,796,500 26,723 43735110
Infinity Broadcasting Corp. (a) 210,842 6,378 45662610
Jacor Communications, Inc. Class A 603,000 8,668 46985840
Liberty Media Corp. Class A (a) 125,000 3,640 53071530
Saga Communications, Inc. Class A (a) (e) 327,800 5,614 78659810
Scandinavian Broadcasting Corp. (a) 40,000 840 80699E92
TCA Cable TV, Inc. 60,000 1,710 87224110
Tele-Communications, Inc. Class A (a) 883,900 26,738 87924010
Time Warner, Inc. 775,944 34,335 88731510
230,410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
ENTERTAINMENT - 0.5%
Cedar Fair LP (depositary units) 60,500 $ 2,125 15018510
Disney (Walt) Co. 10,000 426 25468710
Players International, Inc. (a) 332,900 8,239 72790310
PolyGram N.V. ADR 315,000 12,403 73173310
Royal Caribbean Cruises Ltd. 440,000 11,770 78015392
34,963
LEISURE DURABLES & TOYS - 0.7%
ARCTCO, Inc. 525,200 12,605 03966510
Authentic Fitness Corp. (a) 12,100 340 05266110
Fleetwood Enterprises, Inc. 160,300 3,807 33909910
Hasbro, Inc. 270,000 9,788 41805610
Mattel, Inc. 440,175 12,160 57708110
Thor Industries, Inc. 106,100 2,732 88516010
41,432
LODGING & GAMING - 2.4%
Autotote Corp. Class A (a) 10,000 220 05332310
Genting BHD (ML EX) 677,000 9,424 37245210
Grand Palais Enterprises, Inc. (a)(g) 398,400 6,597 38699522
Hilton Hotels Corp. 221,400 13,450 43284810
Hong Kong & Shanghai Hotels 9,000,000 17,354 71899292
Hospitality Franchise Systems, Inc. (a) 785,300 41,719 44091210
La Quinta Motor Inns, Inc. 464,250 16,365 50419510
Lottery Enterprises, Inc. (a) 25,000 413 54569410
Marriott International, Inc. 400,000 11,600 57190010
Mirage Resorts, Inc. (a) 483,350 11,540 60462E10
Station Casinos, Inc. (a) 212,500 4,197 85768910
WMS Industries, Inc. (a) 518,900 14,918 92929710
147,797
PUBLISHING - 0.7%
American Greetings Corp. Class A 95,200 3,237 02637510
Belo (A.H.) Corp. Class A 111,700 5,920 08055510
Enquirer/Star Group, Inc. Class A 283,400 5,385 29355410
Gannett Co., Inc. 250,000 14,313 36473010
Harte Hanks Communications, Inc. (a) 40,000 780 41619610
MaClean Hunter Ltd. 463,300 4,425 55474980
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
PUBLISHING - CONTINUED
Meredith Corp. 263,600 $ 10,544 58943310
Park Communications, Inc. (a) 90,000 1,890 70025210
Score Board, Inc. (a) 25,000 459 80917320
46,953
RESTAURANTS - 0.4%
Consolidated Products, Inc. (a) 224,030 2,240 20979810
Ground Round Restaurants, Inc. (a) (e) 755,200 5,947 39942710
IHOP Corp. (a) 309,500 8,976 44962310
McDonald's Corp. 50,000 2,850 58013510
Quantum Restaurant Group, Inc. (a) 153,100 1,875 74763T10
Shoney's, Inc. (a) 110,000 2,544 82503910
Uno Restaurant Corp. (a) 27,700 270 91490010
24,702
TOTAL MEDIA & LEISURE 526,257
NONDURABLES - 3.7%
AGRICULTURE - 0.1%
Pioneer Hi-Bred International, Inc. 119,700 4,668 72368610
BEVERAGES - 0.6%
Canadaigua Wine Co. Class A (a) 406,900 12,817 13721920
Coca-Cola Bottling Co. Consolidated 10,100 369 19109810
Dr. Pepper/Seven-Up Companies, Inc. (a) 1,110,000 26,640 25613130
39,826
FOODS - 0.6%
CPC International, Inc. 295,700 14,083 12614910
Chock Full-O-Nuts Corp. 498,000 3,984 17026810
Dean Foods Co. 137,800 4,496 24236110
IBP, Inc. 529,600 13,703 44922310
Michael Foods, Inc. 20,000 160 59407410
Pet, Inc. 125,400 2,195 71582510
38,621
HOUSEHOLD PRODUCTS - 1.3%
DEP Corp. Class A (a) 406,000 2,132 23320220
Gillette Company 750,800 44,766 37576610
Paragon Trade Brands, Inc. (a) 332,600 9,812 69912K10
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - CONTINUED
Premark International, Inc. 160,000 $ 12,840 74045910
Safeskin Corp. 431,900 6,910 78645410
Stanhome, Inc. 202,100 6,846 85442510
83,306
TOBACCO - 1.1%
Philip Morris Companies, Inc. 1,000,000 55,750 71815410
RJR Nabisco Holdings Corp. (a) 1,782,700 11,365 74960K10
67,115
TOTAL NONDURABLES 233,536
PRECIOUS METALS - 3.4%
PRECIOUS METALS - 3.4%
Agnico Eagle Mines Ltd. 167,900 2,191 00847410
American Barrick Resources Corp. 830,000 23,627 02451E10
Anglo American Corp. South Africa:
(Reg.) 57,600 2,947 03486110
ADR (a) 159,400 8,349 03486130
Cambior Inc. 791,400 11,975 13201L10
Euro-Nevada Mining Corp. 511,500 18,237 29870P10
Franco Nevada Mining Corp. 276,000 19,002 35186010
Golden Star Resources, Ltd. Canada (a) 362,200 4,864 38119T10
Homestake Mining Co. 1,500,000 33,000 43761410
Newmont Mining Corp. 365,000 21,033 65163910
Placer Dome Inc. 1,015,000 25,245 72590610
St. Helena Gold Mines Ltd. Ord. 11,300 116 78967010
TVX Gold, Inc. (a) 400,000 2,648 87308K10
Vaal Reefs Exploration & Mining Co. Ltd. ADR 29,200 296 91850640
Western Deep Levels Ltd. ADR 380,000 18,430 95807720
Western Mining Corp. Holdings Ltd 3,000,000 14,342 95869410
Zapopan NL (a) 4,298,500 8,698 98999293
215,000
RETAIL & WHOLESALE - 3.6%
APPAREL STORES - 0.8%
AnnTaylor Stores Corp. (a) 414,800 10,266 03611510
Filene's Basement Corp. (a) 337,200 3,667 31686610
Gap, Inc. 650,000 25,594 36476010
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
APPAREL STORES - CONTINUED
Merry-Go-Round Enterprises, Inc. 650,000 $ 2,194 59043610
Petrie Stores Corp. 138,500 4,034 71643410
Sportmart, Inc. (a) 35,000 621 84892210
Talbots, Inc. 1,000 26 87416110
United States Shoe Corp. 280,000 4,200 91260510
50,602
APPLIANCE STORES - 0.2%
Cellstar Corp. (a) 674,500 11,298 15092510
GENERAL MERCHANDISE STORES - 0.9%
Hills Stores Co. (a) 8,000 163 43169210
Hudsons Bay Co. Ord. 284,500 8,502 44420410
Kohls Corp. (a) 600 30 50025510
Neiman-Marcus Group, Inc. 397,800 7,459 64020410
Penney (J.C.) Co., Inc. 300,000 15,712 70816010
Price/Costco, Inc. 1,050,000 20,213 74143W10
Value City Department Stores, Inc. (a) 68,700 1,005 92038710
53,084
GROCERY STORES - 0.4%
Food Lion, Inc. Class A 201,600 1,310 34477520
Ingles Markets, Inc. Class A 87,900 967 45703010
Pick N Pay Stores Ltd. (a) 998,000 3,024 72199422
Richfood Holdings, Inc. Class A 767,000 13,423 76340810
Ruddick Corp. 20,000 463 78125810
Rykoff-Sexton, Inc. 236,300 5,169 78375910
24,356
RETAIL & WHOLESALE, MISC - 1.3%
Amway Asia Pacific Ltd. (a) 10,500 374 03299H22
50-Off Stores, Inc. (a) 477,000 3,279 31681110
Fabri-Centers of America, Inc. (a) 174,200 3,266 30284610
Fingerhut Companies, Inc. 45,500 1,280 31786710
Friedmans, Inc. Class A (a) 125,000 1,719 35843810
Futures Shops Ltd. 97,000 2,275 36091310
Good Guys, Inc. (a) 89,300 1,161 38209110
Lowe's Companies, Inc. 410,000 24,293 54866110
Luria (L.) & Son, Inc. (a) 251,900 3,778 55048410
Musicland Stores Corp. 515,000 10,686 62758B10
Office Depot, Inc. (a) 225,000 7,566 67622010
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISC - CONTINUED
Toys "R" Us, Inc. (a) 500,000 $ 20,437 89233510
Wickes Lumber Co. (a) 150,000 2,681 96744610
82,795
TOTAL RETAIL & WHOLESALE 222,135
SERVICES - 2.1%
ADVERTISING - 0.2%
Foote Cone & Belding Communications, Inc. 13,300 639 34487210
Regal Communication Corp. (a) (e) 1,837,900 7,696 75875630
8,335
LEASING & RENTAL - 0.0%
Agency Rent-A-Car, Inc. (a) 167,500 2,198 00845010
PRINTING - 0.4%
Cadmus Communications Corp. 140,700 1,970 12758710
Cryk, Inc. (a) 50,000 1,150 23281710
Moore Corporation Ltd. 660,000 12,733 61578510
Reynolds & Reynolds Co. Class A 160,600 7,327 76169510
Valassis Communications, Inc. 69,400 928 91886610
Wallace Computer Services, Inc. 68,600 2,324 93227010
26,432
SERVICES - 1.5%
Barefoot, Inc. (a) 225,700 7,787 06751210
Block (H&R), Inc. 60,000 2,445 09367110
CDI Corp. (a) 254,200 3,177 12507110
Catalina Marketing Corp. (a) 6,500 325 14886710
Ecolab, Inc. 164,600 7,407 27886510
Fair Issac & Company, Inc. 70,000 1,575 30325010
Franklin Quest Co. (a) 175,400 6,183 35459610
Medaphis Corp. 350,200 11,557 58402810
Michael Anthony Jewelers, Inc. (a)(e) 500,000 4,187 59406010
Oroamerica, Inc. (a) 82,700 1,241 68702710
Pittston Company Services Group 1,084,100 31,303 72570110
Robert Half International, Inc. (a) 428,700 11,253 77032310
Service Corp. International 110,000 2,888 81756510
91,328
TOTAL SERVICES 128,293
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - 11.0%
COMMUNICATIONS EQUIPMENT - 1.3%
Cisco Systems, Inc. (a) 224,300 $ 14,495 17275R10
DSC Communications Corp. (a) 30,000 1,845 23331110
Harmon Industries, Inc. (a)(e) 150,500 3,461 41313610
Inter-Tel, Inc. (a) 766,900 6,710 45837210
Lo Jack Corp. (a) 120,000 825 53945110
MB Communications, Inc. (a) (e) 1,024,600 21,773 55262M10
Porta Systems Corp. (e) 433,200 4,278 73564710
3Com Corp. (a) 337,800 15,877 88553510
VMX, Inc. (a) 1,123,000 4,352 91827610
Wellfleet Communications, Inc. (a) 140,000 9,030 94949710
82,646
COMPUTER SERVICES & SOFTWARE - 2.7%
ASK Computer Systems, Inc. (a) 25,000 328 00190310
Adobe Systems, Inc. 202,300 4,501 00724F10
BancTec, Inc. (a) 153,500 3,722 05978410
Computer Associates International, Inc. 239,600 9,584 20491210
CompuCom Systems, Inc. (a) 339,500 1,379 20478010
Electronic Arts (a) 30,000 900 28551210
Electronic Information Systems, Inc. (a) 277,800 3,681 28573810
Equifax Inc. 640,000 17,520 29442910
Government Technology Services, Inc. (a) 50,300 641 38375010
HBO & Co. 1,000 46 40410010
Intelligent Electronics, Inc. 62,200 1,703 45815710
KnowledgeWare, Inc. (a) 400,000 6,150 49924510
Lotus Development Corp. (a) 988,000 54,340 54570010
Micrografx, Inc. (a) 150,000 1,359 59507710
Microsoft Corp. (a) 316,700 25,534 59491810
Payco American Corp. (a) 27,500 289 70432710
SafeCard Services, Inc. 733,500 13,845 78642110
State of The Art, Inc. (a) 426,400 3,145 85730710
Sterling Software, Inc. (a) 68,800 1,952 85954710
Stratacom, Inc. (a) 457,500 7,663 86268310
Symantec Corp. (a) 35,000 639 87150310
Systems & Computer Technology Corp. 40,000 720 87187310
VMark Software, Inc. (a)(e) 455,600 6,492 92856110
Warner Insurance Services, Inc. (e) 440,950 2,205 93446710
168,338
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - 5.7%
ADAPTEC, Inc. (a) 105,000 $ 4,174 00651F10
AST Research, Inc. (a) 850,000 19,338 00190710
Amdahl Corp. 1,509,600 9,058 02390510
Compaq Computer Corp. (a) 525,000 38,850 20449310
Creative Technologies, Corp. (a) 193,900 6,156 22599992
Dell Computer Corporation (a) 733,200 16,589 24702510
Diebold, Inc. 337,300 20,322 25365110
Digital Biometrics, Inc. (a) 206,200 2,681 25383310
Exabyte (a) 325,900 5,744 30061510
Hewlett-Packard Co. 325,700 25,730 42823610
Hutchinson Technology, Inc. (a) 15,500 453 44840710
International Business Machines Corp. 2,016,500 113,932 45920010
Itron, Inc. (a) 50,000 900 46574110
Media Vision Technology, Inc. 485,900 21,258 58445H10
Merisel, Inc. (a) 261,400 4,803 58984910
Micropolis Corp. (a) 612,300 4,286 59490710
Miltope Group, Inc. (a)(e) 384,700 1,587 60219110
NAI Technologies, Inc. (a) 260,000 1,690 62872H10
Norand Corp. (a) 12,500 341 65542110
Photonics Corp. (a) (e) 222,500 1,391 71937W10
Quantum Corp. (a) 337,000 4,760 74790610
Seagate Technology (a) 6,700 159 81180410
Sequent Computer Systems, Inc. (a) 500,000 7,625 81733810
Sun Microsystems, Inc. (a) 216,700 6,311 86681010
Symbol Technologies, Inc. (a) 290,000 5,256 87150810
Syquest Technology, Inc. (a) (e) 610,800 6,261 87166010
Tech Data Corp. (a) 110,000 3,960 87823710
Xerox Corp. 250,000 22,344 98412110
Xylogics, Inc. (a) (e) 70,000 1,155 98415210
357,114
ELECTRONIC INSTRUMENTS - 0.0%
Fisher Scientific International, Inc. 50,000 1,769 33803210
ELECTRONICS - 1.3%
Analog Devices, Inc. (a) 20,000 493 03265410
Dovatron International, Inc. (a)(e) 414,300 11,393 25985910
Intel Corp. 225,000 13,950 45814010
International Rectifier Corp. (a) 368,400 5,158 46025410
LSI Logic Corp. (a) 301,200 4,819 50216110
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Linear Technology Corp. 109,800 $ 4,255 53567810
Maxim Integrated Products, Inc. (a) 54,900 2,628 57772K10
Motorola, Inc. 110,000 10,161 62007610
Photronics, Inc. (a) 47,500 760 71940510
Samsung Electronics Co. Ltd. GDR (a)(f) 6,574 222 79605030
Sanmina Corp. (a) 369,600 9,887 80090710
Solectron Corp. (a) 50,000 1,419 83418210
Storage Technology Corp. (a) 55,000 1,739 86211120
Texas Instruments, Inc. 174,400 11,074 88250810
77,958
TOTAL TECHNOLOGY 687,825
TRANSPORTATION - 4.3%
AIR TRANSPORTATION - 1.0%
AMR Corp. (a) 245,000 16,415 00176510
Comair Holdings, Inc. 123,300 2,820 19978910
Mesa Airlines, Inc. (a) 50,000 888 59048110
Southwest Airlines Co. 20,000 750 84474110
UAL Corp. (a) 273,100 39,873 90254910
60,746
RAILROADS - 2.2%
Burlington Northern, Inc. 425,000 24,597 12189710
CSX Corp. 413,200 33,469 12640810
Chicago & North Western Holdings Corp. (a) 170,000 4,250 16715510
Conrail, Inc. 344,100 23,012 20836810
Illinois Central Corp., Series A 186,500 6,690 45184110
Santa Fe Pacific Corp. 1,507,300 33,537 80218310
Southern Pacific Rail Corp. (a) 120,000 2,370 84358410
Trinity Industries, Inc. 89,850 3,875 89652210
Wisconsin Central Transportation Corp. (a) 153,100 9,148 97659210
140,948
TRUCKING & FREIGHT - 1.1%
Airborne Freight Corp. 104,000 3,653 00926610
American Freightways Corp. (a) 22,500 444 02629V10
Consolidated Freightways, Inc. (a) 1,077,300 25,451 20923710
Federal Express Corp. (a) 445,000 31,539 31330910
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
TRUCKING & FREIGHT - CONTINUED
Frozen Food Express Industries, Inc. 41,333 $ 754 35936010
Harper Group 57,500 1,035 41345910
Landstar System, Inc. (a) 187,100 4,140 51509810
Swift Transportation Co., Inc. (a) 22,500 484 87075610
TNT Freightways Corp. 31,950 863 87259J10
Werner Enterprises, Inc. 31,100 949 95075510
69,312
TOTAL TRANSPORTATION 271,006
UTILITIES - 3.1%
CELLULAR - 0.7%
BCE Mobile Communications, Inc. 200,000 6,261 05534G10
Cellular, Inc. (a) 10,000 175 15116310
LIN Broadcasting Corp. (a) 31,300 3,459 53276310
Metrocall, Inc. (a) 30,700 537 59164710
Rogers Cantel Mobile Communications, Inc.
Class B (non-vtg.) (a) 438,000 11,764 77510210
Rogers Communications, Inc. Class B (a) 204,100 3,378 77510920
Vodafone Group PLC 2,450,000 21,477 92857T92
47,051
ELECTRIC UTILITY - 1.6%
Baltimore Gas & Electric Co. 50,000 1,269 05916510
Central & South West Corp. 278,900 8,437 15235710
DPL, Inc. 32,400 668 23329310
DQE, Inc. 91,200 3,146 23329J10
Entergy Corp. 789,900 28,436 29364F10
General Public Utilities Corp. 40,000 1,235 37055010
Gulf States Utilities Corp. (a) 816,800 16,336 40255010
Houston Industries, Inc. 259,400 12,354 44216110
Idaho Power Co. 56,300 1,710 45138010
LG&E Energy Corp. 13,400 543 50191710
NIPSCO Industries, Inc. 63,000 2,071 62914010
Philadelphia Electric Co. 67,300 2,036 71753710
Pinnacle West Capital Corp. (a) 79,900 1,788 72348410
Public Service Co. of Colorado 84,600 2,718 74444810
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
ELECTRIC UTILITY - CONTINUED
Southern Co. 179,400 $ 7,916 84258710
Texas Utilities Co. 162,900 7,045 88284810
97,708
GAS - 0.1%
British Gas PLC Ord. 400,000 2,021 11090199
Equitable Resources, Inc. 95,000 3,479 29454910
Southern Union Company (a) 112,160 2,972 84403010
8,472
TELEPHONE SERVICES - 0.7%
Ameritech Corp. 220,000 16,885 03095410
BCE, Inc. 80,000 2,792 05534B10
Bell Atlantic Corp. 200,000 11,800 07785310
LDDS Communications, Inc. (a) 20,000 965 50182L10
Southern New England Telecommunications Corp. 20,000 722 84348510
Southwestern Bell Corp. 55,000 2,283 84533310
Telefonos de Mexico SA sponsored ADR representing
shares Ord. Class L 105,000 7,087 87940378
42,534
TOTAL UTILITIES 195,765
TOTAL COMMON STOCKS
(Cost $4,586,266) 4,954,472
PREFERRED STOCKS - 0.8%
CONVERTIBLE PREFERRED STOCKS - 0.4%
CONSTRUCTION & REAL ESTATE - 0.1%
REAL ESTATE - 0.1%
Rouse Co. Series A 100,900 5,423 77927320
TRANSPORTATION - 0.3%
AIR TRANSPORTATION - 0.3%
UAL, Inc. 6 1/4% (f) 175,600 19,338 90254930
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONVERTIBLE PREFERRED STOCKS - CONTINUED
TRANSPORTATION - CONTINUED
TRUCKING & FREIGHT - 0.0%
Consolidated Freightways, Inc. Series C, $1.54 30,000 $ 664 20923720
TOTAL TRANSPORTATION 20,002
TOTAL CONVERTIBLE PREFERRED STOCKS 25,425
NONCONVERTIBLE PREFERRED STOCKS - 0.4%
UTILITIES - 0.4%
TELEPHONE SERVICES - 0.4%
SIP (Societa Ital Per L'Eser) Spa Di Risp N/C Ord. 5,657,200 10,299
78401796
Stet Societa Finanziaria Telefonica Spa 7,500,000 15,140 85982592
25,439
TOTAL PREFERRED STOCKS
(Cost $50,439 ) 50,864
CORPORATE BONDS - 0.8%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) (C) AMOUNT (000S)
CONVERTIBLE BONDS - 0.4%
DURABLES - 0.1%
TEXTILES & APPAREL - 0.1%
Unifi, Inc. 6%, 3/15/02 Baa1 $ 6,500 7,215 904677AC
HEALTH - 0.0%
MEDICAL FACILITIES MANAGEMENT - 0.0%
Abbey Healthcare Group, Inc. 6 1/2%,
12/1/02 (f) B2 290 409 002786AA
RETAIL & WHOLESALE - 0.2%
RETAIL & WHOLESALE, MISC - 0.2%
Fabri-Centers of America, Inc. 6 1/4%, 3/1/02 B2 7,300 6,497 302846AB
Intertan Inc. 9%, 8/30/00 - 5,270 4,226 461120AA
10,723
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (C) AMOUNT (000S) (000S)
CONVERTIBLE BONDS - CONTINUED
TECHNOLOGY - 0.1%
COMMUNICATIONS EQUIPMENT - 0.1%
General Instrument Corp. 5%, 6/15/00 B1 $ 3,000 $ 4,020 370121AA
Porta Systems Corp. euro 6%, 7/1/02 - 130 96 7356479A
4,116
TOTAL CONVERTIBLE BONDS 22,463
NONCONVERTIBLE BONDS - 0.4%
FINANCE - 0.2%
BANKS - 0.2%
International Bank for Reconstruction &
Development euro 5 1/4%, 3/20/02 - 1,200,000 12,212 4590569J
MEDIA & LEISURE - 0.0%
BROADCASTING - 0.0%
Time Warner, Inc. 0%, 8/15/02 (d) Ba1 3,300 2,999 887315AG
RETAIL & WHOLESALE - 0.2%
GROCERY STORES - 0.2%
Rykoff Sexton, Inc. 8 7/8%, 11/1/03 Ba2 12,000 12,300 783759AC
TOTAL NONCONVERTIBLE BONDS 27,511
TOTAL CORPORATE BONDS
(Cost $47,798) 49,974
U.S. TREASURY OBLIGATIONS - 8.0%
U.S. Treasury Bills, yields at date of purchase
0%-3.13%, 2/24/94 (Cost $497,596) 500,000 497,720 99399H5H
OTHER SECURITIES - 0.1%
PURCHASED BANK DEBT - 0.1%
Macy (R.H.) & Co., Inc.: (b)
funded letter of credit 5/27/95 1,896 1,517
mortgage loan participation 5/27/94 2,500 1,988 556994BK
revolver loan variable rate 5/27/95 605 484 556994CH
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (000S) (000S)
PURCHASED BANK DEBT - CONTINUED
Macy (R.H.) & Co., Inc. (b) - continued
special real estate capitalization 9/30/95 $ 287 $ 229 557991AA
term loan variable rate note:
5/27/95 799 639 556994CG
5/27/96 304 243 556993BD
5/27/96 728 583 556993BE
TOTAL OTHER SECURITIES
(Cost $4,859) 5,683
REPURCHASE AGREEMENTS - 11.0%
MATURITY
AMOUNT (000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.23%
dated 12/31/93 due 1/3/94 $ 684,233 684,049
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $5,871,007) $ 6,242,762
FORWARD FOREIGN CURRENCY CONTRACTS
AMOUNTS IN THOUSANDS SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
3,723,846 JPY
(Payable amount $34,829) 2/10/94 $ 33,344 $ (1,485)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.5%
CONTRACTS TO SELL
5,494,296 JPY
(Receivable amount $50,782) 2/10/94 $ 49,196 $ 1,586
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 0.8%
LEGEND
1. Non-income producing
2. Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
3. Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
4. Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
5. Affiliated company (see Note 6 of Notes to Financial Statements).
6. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $22,541,000 or .4% of net
assets.
7. Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Grand Palais
Enterprises, Inc. 6/11/93 $ 6,598,000
OTHER INFORMATION
Distribution of investments by country, as a percentage of total value of
investment in securities, is as follows:
United States 86.5%
Canada 6.3
United Kingdom 1.6
Others (individually less than 1%) 5.6
TOTAL 100.0%
INCOME TAX INFORMATION
At December 31, 1993 the aggregate cost of investment securities for income
tax purposes was $5,886,032,000. Net unrealized appreciation aggregated
$356,730,000, of which $462,590,000 related to appreciated investment
securities and $105,860,000 related to depreciated investment securities.
The fund hereby designates $68,130,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) DECEMBER 31, 1993
ASSETS
Investment in securities, at value (including repurchase $ 6,242,762
agreements of $684,049) (cost $5,871,007) (Notes 1
and 2) - See accompanying schedule
Long foreign currency contracts held, at value (cost 33,344
$34,829) (Note 2)
Short foreign currency contracts (Note 2) $ (49,196)
Contracts held, at value
Receivable for contracts held 50,782 1,586
Cash 1
Receivable for investments sold 228,706
Receivable for fund shares sold 37,179
Dividends receivable 5,257
Interest receivable 752
Other receivables 173
TOTAL ASSETS 6,549,760
LIABILITIES
Payable for foreign currency contracts held (Note 2) 34,829
Payable for investments purchased 168,396
Payable for fund shares redeemed 40,915
Dividends payable 7,568
Accrued management fee 3,454
Other payables and accrued expenses 3,607
Collateral on securities loaned, at value (Note 5) 83,431
TOTAL LIABILITIES 342,200
NET ASSETS $ 6,207,560
Net Assets consist of (Note1):
Paid in capital $ 5,738,003
Distributions in excess of net investment income (174)
Accumulated undistributed net realized gain (loss) on 97,875
investments
Net unrealized appreciation (depreciation) on:
Investment securities 371,755
Foreign currency contracts 101
NET ASSETS, for 201,286 shares outstanding $ 6,207,560
NET ASSET VALUE and redemption price per share $30.84
($6,207,560 (divided by) 201,286 shares)
Maximum offering price per share (100/97.00 of $30.84) $31.79
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED DECEMBER 31, 1993
INVESTMENT INCOME $ 41,707
Dividends (including $167 from affiliated issuers) (Note
6)
Interest (including security lending fees of $62) (Note 5) 21,114
TOTAL INCOME 62,821
EXPENSES
Management fee (Note 4) $ 25,826
Basic fee
Performance adjustment 2,669
Transfer agent fees (Note 4) 12,923
Accounting fees and expenses (Note 4) 802
Non-interested trustees' compensation 25
Custodian fees and expenses 581
Registration fees 1,668
Audit 52
Legal 45
Miscellaneous 113
Total expenses before reductions 44,704
Expense reductions (Note 7) (954) 43,750
NET INVESTMENT INCOME 19,071
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1 AND 3)
Net realized gain (loss) on:
Investment securities (including realized gain of $6,738 474,500
on sale of affiliated issuers)
Foreign currency contracts 6,113 480,613
Change in net unrealized appreciation (depreciation) on:
Investment securities 180,257
Foreign currency contracts 101 180,358
NET GAIN (LOSS) 660,971
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 680,042
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED DECEMBER 31,
1993 1992
INCREASE (DECREASE) IN NET ASSETS
Operations $ 19,071 $ 15,913
Net investment income
Net realized gain (loss) on investments 480,613 155,091
Change in net unrealized appreciation (depreciation) 180,358 42,217
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 680,042 213,221
FROM
OPERATIONS
Distributions to shareholders: (19,956) (13,036)
From net investment income
In excess of net investment income (12,201) -
Net realized gain (387,128) (109,733)
TOTAL DISTRIBUTIONS (419,285) (122,769)
Share transactions 5,259,147 1,803,211
Net proceeds from sales of shares
Reinvestment of distributions from: 31,301 12,740
Net investment income
Net realized gain 379,054 108,001
Cost of shares redeemed (1,709,099) (1,028,207)
Net increase (decrease) in net assets resulting from 3,960,403 895,745
share
transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,221,160 986,197
NET ASSETS
Beginning of period 1,986,400 1,000,203
End of period (including under (over) distribution of $ 6,207,560 $ 1,986,400
net investment income of ($174) and $22,785,
respectively)
OTHER INFORMATION
Shares
Sold 170,736 67,906
Issued in reinvestment of distributions from: 1,036 468
Net investment income
Net realized gain 12,573 4,002
Redeemed (55,382) (39,126)
Net increase (decrease) 128,963 33,250
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31,
1993 1992# 1991 1990 1989
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 27.47 $ 25.60 $ 17.35 $ 16.78 $ 12.65
period
Income from Investment
Operations
Net investment income (.09) .32(dagger) .22 .51 .63(double dagger)
Net realized and unrealized 5.89 3.67 9.20 .15 4.82
gain (loss) on investments
Total from investment 5.80 3.99 9.42 .66 5.45
operations
Less Distributions
From net investment income (.11) (.20) (.11) (.09) (.25)
In excess of net investment (.07) - - - -
income
From net realized gain (2.25) (1.92) (1.06) - (1.07)
Total distributions (2.43) (2.12) (1.17) (.09) (1.32)
Net asset value, end of period $ 30.84 $ 27.47 $ 25.60 $ 17.35 $ 16.78
TOTAL RETURN * ** 21.43% 15.89% 54.92% 3.94% 43.15%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 6,208 $ 1,986 $ 1,000 $ 332 $ 298
(in millions)
Ratio of expenses to average 1.06% .87% .89% 1.06% .95%
net assets (diamond)
Ratio of expenses to average 1.08% .87% .89% 1.06% .95%
net assets before expense (diamond)
reductions
Ratio of net investment income .46% 1.19% 1.01% 3.02% 4.01%
to average net assets
Portfolio turnover rate 255% 297% 217% 320% 266%
</TABLE>
* TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
** THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.
# AS OF JANUARY 1, 1992 THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
(dagger) NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
(double dagger) INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.20 PER SHARE.
(diamond)SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1993
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Contrafund (the fund) is registered under the Investment Company
Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust and is
authorized to issue an unlimited number of shares. The following summarizes
the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
are valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities, other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Dividend and
interest income is recorded net of foreign taxes where recovery of such
taxes is not assured.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
market discount, partnerships, non-taxable
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
dividends and losses deferred due to wash sales, futures and options,
excise tax regulations. The fund also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes. Permanent book and tax
basis differences relating to shareholder distributions will result in
reclassifications to paid in capital.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective January
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of December 31, 1992 have been reclassified to
reflect an increase in paid in capital of $88,294,000 a decrease in
undistributed net investment income of $19,725,000 and a decrease in
accumulated net realized gain on investments of $68,569,000.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
2. OPERATING POLICIES -
CONTINUED
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with other
registered investment companies having management contracts with FMR, may
transfer uninvested cash balances into a joint trading account. These
balances are invested in one or more repurchase agreements that are
collateralized by U.S. Treasury or Federal Agency obligations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $6,597,000 or .1% of net assets.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $12,208,779,000 and $9,289,698,000, respectively, of which U.S.
government and government agency obligations aggregated $262,056,000 and
$124,000,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.30% to .52% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .30%.
The basic fee is subject to a performance adjustment (up to a maximum of +
or - .20%) based on the fund's investment performance as compared to the
appropriate index over a specified period of time. For the period, the
management fee was equivalent to an annual rate of .69% of average net
assets after the performance adjustment.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an
affiliate of FMR and the general distributor of the fund, received sales
charges of $32,505,000 on sales of shares of the fund.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size,
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEE - CONTINUED
number of accounts and the number of transactions made by shareholders. FSC
pays for typesetting, printing and mailing of all shareholder reports,
except proxy statements.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the fund's accounting
records and administers the security lending program. The security lending
fee is based on the number and duration of lending transactions. The
accounting fee is based on the level of average net assets for the month
plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $6,592,000 for the period.
5. SECURITY LENDING.
The fund loaned securities to certain brokers who paid the fund negotiated
lenders' fees. These fees are included in interest income. The fund
receives U.S. Treasury obligations and/or cash as collateral against the
loaned securities, in an amount at least equal to 102% of the market value
of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 100% of the market value of the loaned
securities during the period of the loan. At period end, the value of the
securities loaned and the value of collateral amounted to $79,295,000 and
$83,431,000, respectively.
6. TRANSACTIONS WITH
AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. TRANSACTIONS WITH COMPANIES WHICH ARE OR
WERE AFFILIATES ARE AS FOLLOWS:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
DOLLAR AMOUNTS IN THOUSANDS PURCHASES SALES DIVIDEND MARKET
COST COST INCOME VALUE
AFFILIATES
Action Industries, Inc. $ - $ 725 $ - $ -
Broadcasting Partners, Inc.
Class A (a) 3,016 - - 6,917
Brown Tom Inc. (a) 4,532 30 - 9,937
Cambrex Corp. 2,401 - 61 7,404
Centigram Communications Corp. 1,193 707 - -
Continental Homes Holdings Corp. 129 - 20 9,214
Control Data Systems, Inc. 1,016 1,297 - -
Donnkenny Inc. (a) 208 - - 6,624
Dovatron lnternational, Inc. 11,500 1,971 - 11,393
Electro Scientific Industries, Inc. 494 332 - -
Esco Electronics Corp. 619 - - -
Exide Electronics Group, Inc. 4,664 4,591 - -
Forstmann & Co, Inc. (a) 14 - - 3,236
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS PURCHASES SALES DIVIDEND MARKET
COST COST INCOME VALUE
AFFILIATES
Grad & Walker Energy Corp. $ 334 $ - $ - $ 6,016
Grand Palais Enterprises, Inc. - - - 6,598
Ground Round Restaurants, Inc. (a) 1,505 - - 5,947
HS Resources, Inc. (a) - - - 13,083
Haverty Furniture Companies, Inc. 1,667 - 65 9,081
Harmon Industries, Inc. (a) 705 813 - 3,462
Hyde Athletic Industries, Inc. 17 95 - -
Intensity Resources Ltd. (a) 6,376 5,529 - 2,020
Inter-Tel, Inc. (a) 2,399 - - 6,710
Just Toys, Inc. 1,348 1,484 - 4,530
Mb Communications, Inc. (a) 9,469 - - 21,773
Michael Anthony Jewelers, Inc. (a) - - - 4,188
Miltope Group, Inc. (a) 441 - - 1,587
Nantucket Industries, Inc. (a) 479 761 - 1,073
Natures Bounty, Inc. (a) 719 4,557 - 208
Ohm Corp. - - - 15,734
Offshore Pipelines, Inc. (a) 1,316 83 - 9,940
Orbit International Corp. - 7 - 1,416
Photonics Corp. (a) - 135 - 1,391
Porta Systems Corp. 779 - - 96
Redman Industries (a) 165 - - 7,628
Regal Communication Corp. (a) 3,795 - - 7,696
Rehabcare Corp. (a) 1,035 - - 2,554
Saga Communications, Inc.
Class A (a) 1,908 - - 5,614
Southwest Bancshares, Inc. - 586 - -
Syquest Technology, Inc. (a) 835 1,142 - 6,261
TETRA Technologies, Inc. 819 1,538 - 6,796
Vmark Software, Inc. (a) - 33 - 6,492
Warner Insurance Services, Inc. 2,098 2,937 21 2,205
Xylogics, Inc. (a) 1,946 1,032 - 1,155
Younkers, Inc. 5,202 1,473 - -
TOTALS $ 75,143 $ 31,858 $ 167 $ 215,979
(a) NON-INCOME PRODUCING
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the
fund's expenses were reduced by $954,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and the Shareholders of Fidelity Contrafund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Contrafund, including the schedule of portfolio investments, as of
December 31, 1993, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and
financial highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1993 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating
the overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of
Fidelity Contrafund as of December 31, 1993, the results of its operations
for the year then ended, the changes in its net assets for each of the two
years in the period then ended, and the financial highlights for each of
the five years in the period then ended in conformity with generally
accepted accounting principles.
COOPERS & LYBRAND
COOPERS & LYBRAND
Boston, Massachusetts
February 2, 1994
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
1.For quotes on funds you own.
2. For an individual fund quote.
3. For the ten most frequently
requested Fidelity fund quotes.
4. For quotes on Fidelity Select
Portfolios.(Registered trademark)
5. To change your Personal
Identification Number (PIN).
6. To speak with a Fidelity
representative.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
1. For balances on funds you own.
2. For your most recent fund activity
(purchases, redemptions, and
dividends).
3. To change your Personal
Identification Number (PIN).
4. To speak with a Fidelity
representative.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
32 West Central Boulevard
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8300 Boone Boulevard
Vienna, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Will Danoff, 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*
Marvin L. Mann *
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Fidelity Fifty Fund
Growth Company Fund
Low-Priced Stock Fund
Magellan(Registered trademark) Fund
New Millennium Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
