FIDELITY
(registered trademark)
CONTRAFUND
SEMIANNUAL REPORT
JUNE 30, 1996
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
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 past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 34 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 38 Notes to the financial statements.
To reduce expenses and demonstrate respect for our environment, we have
begun mailing only one copy of most financial reports and prospectuses to
most households, even if they have more than one account in the fund. If
you need additional copies of financial reports, prospectuses, or
historical account information, please call 1-800-544-6666.
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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first six
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term. You also can help to manage some of the risks of investing
through diversification. A stock fund is already diversified because it
invests in many issues. You can diversify even further by placing some of
your money in several different types of stock funds or in other investment
categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in share price, plus reinvestment of any dividends
(or income) and capital gains (the profits the fund earns when it sells
securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Contrafund 9.10% 23.14% 154.02% 453.28%
Contrafund (incl. 3% sales charge) 5.82% 19.44% 146.40% 436.69%
S&P 500(registered trademark) 10.10% 26.00% 107.63% 264.95%
Growth Funds Average 10.08% 22.20% 99.86% 216.52%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, five years, or 10
years. For example, if you invested $1,000 in a fund that had a 5% return
over the past year, the value of your investment would be $1,050. You can
compare the fund's returns to the performance of the Standard & Poor's 500
Index - a widely recognized, unmanaged index of common stock prices. The
index figures assume reinvestment of all dividends paid by stocks included
in the index. They do not, however, include any allowance for the brokerage
commissions or other fees you would pay if you actually invested in those
stocks. To measure how the fund's performance stacked up against its peers,
you can compare it to the growth funds average, which reflects the
performance of 668 mutual funds with similar objectives tracked by Lipper
Analytical Services, Inc. over the past six months. Both benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Contrafund 23.14% 20.50% 18.66%
Contrafund (incl. 3% sales charge) 19.44% 19.76% 18.30%
S&P 500 26.00% 15.73% 13.79%
Growth Funds Average 22.20% 14.55% 11.79%
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
IMAHDR PRASUN SHR__CHT 19960630 19960712 105514 S00000000000001
Contrafund SP Standard & Poor 500
00022 SP001
1986/06/30 9700.00 10000.00
1986/07/31 8985.66 9441.00
1986/08/31 9572.17 10141.52
1986/09/30 9000.70 9302.82
1986/10/31 9602.25 9839.59
1986/11/30 9602.25 10078.69
1986/12/31 9479.98 9821.69
1987/01/31 10848.66 11144.67
1987/02/28 11511.96 11584.88
1987/03/31 11702.81 11919.68
1987/04/30 11728.84 11813.60
1987/05/31 11832.94 11916.38
1987/06/30 12266.70 12518.16
1987/07/31 12865.28 13152.83
1987/08/31 13333.74 13643.43
1987/09/30 13064.81 13344.63
1987/10/31 9291.11 10470.20
1987/11/30 8779.28 9607.46
1987/12/31 9299.79 10338.58
1988/01/31 9898.37 10773.84
1988/02/29 10349.48 11275.90
1988/03/31 10366.83 10927.47
1988/04/30 10575.04 11048.77
1988/05/31 10427.56 11144.89
1988/06/30 10930.72 11656.44
1988/07/31 11008.80 11612.15
1988/08/31 10765.89 11217.34
1988/09/30 11208.33 11695.19
1988/10/31 11503.28 12020.32
1988/11/30 11416.53 11848.43
1988/12/31 11254.81 12055.78
1989/01/31 12002.16 12938.26
1989/02/28 11930.99 12616.10
1989/03/31 12562.68 12910.05
1989/04/30 13372.31 13580.08
1989/05/31 14066.29 14130.08
1989/06/30 13977.32 14049.54
1989/07/31 15258.50 15318.21
1989/08/31 15694.45 15618.45
1989/09/30 15996.95 15554.41
1989/10/31 15516.51 15193.55
1989/11/30 15872.39 15503.50
1989/12/31 16111.47 15875.58
1990/01/31 15256.93 14810.33
1990/02/28 15573.78 15001.38
1990/03/31 15909.83 15398.92
1990/04/30 15746.61 15013.95
1990/05/31 17234.85 16477.81
1990/06/30 17455.69 16365.76
1990/07/31 17129.24 16313.39
1990/08/31 15794.62 14838.66
1990/09/30 15132.11 14116.01
1990/10/31 15208.92 14055.32
1990/11/30 16111.47 14963.29
1990/12/31 16745.62 15380.76
1991/01/31 18376.75 16051.37
1991/02/28 19766.59 17199.04
1991/03/31 20924.79 17615.25
1991/04/30 21040.61 17657.53
1991/05/31 22382.19 18420.34
1991/06/30 21127.48 17576.69
1991/07/31 22623.48 18395.76
1991/08/31 23762.38 18831.74
1991/09/30 23829.94 18517.25
1991/10/31 24515.21 18765.38
1991/11/30 23221.89 18009.13
1991/12/31 25942.07 20069.38
1992/01/31 26681.82 19696.09
1992/02/29 27547.68 19952.14
1992/03/31 26800.06 19563.07
1992/04/30 27090.80 20138.23
1992/05/31 27381.54 20236.90
1992/06/30 26716.99 19935.37
1992/07/31 27391.93 20750.73
1992/08/31 26883.13 20325.34
1992/09/30 27340.01 20565.18
1992/10/31 27952.64 20637.16
1992/11/30 29302.51 21340.88
1992/12/31 30065.28 21603.38
1993/01/31 31017.48 21784.85
1993/02/28 31222.10 22081.12
1993/03/31 32714.13 22547.03
1993/04/30 32935.17 22001.39
1993/05/31 34239.32 22591.03
1993/06/30 34250.37 22656.54
1993/07/31 34626.14 22565.92
1993/08/31 36306.05 23421.17
1993/09/30 36383.42 23240.82
1993/10/31 36703.93 23721.91
1993/11/30 35322.42 23496.55
1993/12/31 36507.13 23780.86
1994/01/31 37655.37 24589.41
1994/02/28 37385.20 23923.03
1994/03/31 35906.96 22879.99
1994/04/30 36348.05 23172.85
1994/05/31 36145.39 23552.89
1994/06/30 34750.59 22975.84
1994/07/31 35453.95 23729.45
1994/08/31 36932.19 24702.36
1994/09/30 36443.42 24097.15
1994/10/31 37480.57 24639.34
1994/11/30 35775.83 23741.97
1994/12/31 36097.70 24094.07
1995/01/31 35513.56 24718.82
1995/02/28 36944.11 25682.12
1995/03/31 38291.22 26440.00
1995/04/30 40019.81 27218.65
1995/05/31 40985.43 28306.58
1995/06/30 43584.28 28964.15
1995/07/31 46922.24 29924.60
1995/08/31 47542.15 29999.71
1995/09/30 48412.41 31265.70
1995/10/31 47530.23 31154.08
1995/11/30 48781.97 32521.74
1995/12/31 49193.98 33148.11
1996/01/31 50306.73 34276.47
1996/02/29 50613.42 34594.21
1996/03/31 52018.21 34927.36
1996/04/30 53627.59 35442.19
1996/05/31 54077.67 36356.24
1996/06/28 53668.50 36494.76
IMATRL PRASUN SHR__CHT 19960630 19960712 105519 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Contrafund on June 30, 1986, and a 3% sales charge was paid. As
the chart shows, by June 30, 1996, the value of the investment would have
grown to $53,669 - a 436.69% increase on your initial investment. For
comparison, look at how the S&P 500 did over the same period. With
dividends and capital gains, if any, reinvested, the same $10,000
investment would have grown to $36,495 - a 264.95% 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)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Will Danoff, Portfolio Manager of Fidelity Contrafund
Q. HOW DID THE FUND PERFORM, WILL?
A. For the six months ended June 30, 1996, the fund returned 9.10%. For the
past year, the fund returned 23.14%. For the same periods, the growth funds
average, as tracked by Lipper Analytical Services, was 10.08% and 22.20%,
respectively. Additionally, the S&P 500 Index returned 10.10% and 26.00%,
respectively.
Q. WHAT'S YOUR EVALUATION OF THE FUND'S PERFORMANCE?
A. The fund performed in line with its peers despite taking, in my opinion,
much less risk than the average growth fund. While it is difficult to
quantify risk in a fund, one measure is the fund's price-to-earnings (P/E)
ratio - or the price the fund is paying for one dollar of earnings.
Contrafund's average P/E ratio was about 21 at the end of the period, lower
than the average growth fund's approximately 27 P/E ratio. Additionally,
the fund carried a higher-than-average percentage of short-term investments
- - or cash - during the period. Contrafund had between 13% and 15% of total
investments in cash for the entire period, much more than the cash position
for the average growth fund, which was about 8%. Thus, with the market up
10% for the period, the fund's cash position hurt its performance by
approximately one percentage point.
Q. WHY DID THE FUND HOLD A LARGE CASH POSITION?
A. While in the short term it would have been better for the fund to have
stayed fully invested in stocks, the fund held its relatively high cash
position because I believed that the market was paying incredibly high
prices for most growth companies - particularly small and rapidly growing
companies. While small growth companies produced some of the best returns
in the market during the period, many of these companies were trading at
P/E ratios of more than 60 - which is almost three times as much as the
average stock in Contrafund. I was simply unwilling to buy these expensive
stocks in order to produce potentially better-than-average returns for a
single six-month period. If interest rates increase, or this year's
historically huge cash flows into mutual funds slow or earnings growth
diminishes, these very expensive stocks could fall precipitously.
Q. WHICH SECTORS HELPED THE FUND DURING THE PERIOD? WHICH ONES HURT IT?
A. The energy and energy-services sector contributed nicely to the fund's
performance during the first half of the year despite suffering what I
consider a mild - and healthy - correction in the second quarter. The
sector rose about 15% in the first six months of the year, handily beating
all of the market averages and generating the best returns of all sectors
with the exception of the volatile precious metals group. One dampening
influence on the fund during the period, other than the high cash position,
was its underweighting in the consumer nondurables sector. While the fund
was adequately represented in the retailing sector - which rebounded
sharply after a disastrous 1995 - it missed the strong performance of the
consumer nondurables, which include tobacco, soft drink and personal care
multinationals. Although I underestimated the excellent overseas unit
growth of these companies, their stocks traded at very high P/E multiples
relative to their expected - and admittedly very predictable - earnings
growth rates and, in my opinion, were not the best investments for the
fund.
Q. WHAT HAPPENED WITH THE FUND'S TECHNOLOGY HOLDINGS?
A. It's hard to generalize about the performance of technology stocks over
the past six months. While several groups within technology - such as
semiconductors - performed as poorly as I expected, other groups performed
extremely well. For example, networking companies - which sell equipment to
enable different computers to communicate with one another - experienced
superb demand from corporations and from the surging popularity of the
Internet. Companies producing personal computers and related components
performed in line with the market, but intense competition, generally high
inventories throughout the industry and questionable final demand created
uncertainty for the group's profitability. The fund remained underweighted
in technology because of this uncertain profit outlook as well as
unequivocally high stock valuations.
Q. DID YOU FEEL AS OPTIMISTIC ABOUT THE ENERGY SECTOR AS YOU DID AT THE
BEGINNING OF THE YEAR?
A. Yes, I still believed that the energy sector was one of the most
attractive segments of the stock market. As I outlined in a letter to
shareholders last year, new technological breakthroughs such as
three-dimensional seismic analysis and horizontal drilling techniques now
enable exploration companies to find and extract oil and natural gas much
more economically than in the past. Thus, these energy companies can become
more profitable and can grow faster even if the prices of oil and natural
gas stay at current levels. Additionally, the entire energy industry was
operating very close to effective capacity. In the past decade, the weaker
energy companies have closed part of their operations, gone out of business
entirely or sold themselves to the stronger players. My research showed
that the industry's capacity utilization was approaching 95% - a level not
seen since the last oil crisis in 1979. This tightness suggested that
global oil and gas prices should remain firm, and rates charged by firms in
the energy services sector should begin to increase for the first time in
15 years. These higher prices were extremely positive for the profit growth
of the surviving companies and, consequently, their performance in the
stock market. Based on this optimistic view, the fund held large positions
in Schlumberger, Royal Dutch Petroleum, Halliburton, British Petroleum and
Tidewater - all leading companies in this sector during the period.
Q. GIVEN THE RECORD HIGHS IN THE STOCK MARKET, HOW DO YOU PLAN TO MANAGE
THE FUND GOING FORWARD?
A. Looking forward, the fund will most likely remain in what I believe is a
defensive posture. For example, it may hold a substantial cash position,
own less economically sensitive stocks and hold fewer high P/E stocks.
Nevertheless, I will continue to look for companies with the potential for
good earnings growth over time.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing in
companies that are
undervalued or out of favor
START DATE: May 17, 1967
SIZE: as of June 30, 1996,
more than $19 billion
MANAGER: Will Danoff, since
1990; also manager, Fidelity
Select Retailing Portfolio,
1986- 1989; joined Fidelity in
1986
(checkmark)
WILL DANOFF ON
"CONTRARIAN" INVESTING:
"Typically, contrarian funds
focus on companies that are
doing poorly and whose share
price is at or near its historical
low. My strategy is a variation
on that theme. I attempt to
invest in companies that are
experiencing improving
business prospects and that I
feel are doing better than
generally perceived by the
market. Although this is a
different approach than many
other contrarian funds, the
strategy has been successful
in the past in uncovering
undervalued companies. I try
very hard - with the help of
Fidelity's extensive research
department - to find
companies that have been
staggering but are beginning
to increase their earnings
faster than they have in the
past because of some kind of
catalyst. Examples of
corporate catalysts include a
new, more aggressive
management team, a
meaningful cost cutting
initiative, a sale of a
loss-creating division, a new
product launch, a merger or
acquisition, a significant
improvement in the
company's balance sheet or a
tightening of an industry's
capacity utilization.
"On the sell side, I generally
hold a stock as long as the
company's business prospects
are still improving and I think
the company can earn more
than is generally perceived,
even if the company's share
price has recovered from
historically low levels. As a
fellow shareholder in the fund,
I find this approach has worked
well since I started managing
it six years ago, and believe it
should continue to work in the
future."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JUNE 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Schlumberger Ltd. 1.9 1.3
Royal Dutch Petroleum Co. ADR 1.3 0.0
General Motors Corp. 1.1 1.5
Chrysler Corp. 1.1 1.6
Halliburton Co. 1.0 0.5
WorldCom, Inc. 0.9 0.7
du Pont (E.I.) de Nemours & Co. 0.9 0.3
Home Depot, Inc., (The) 0.9 0.5
British Petroleum PLC ADR 0.8 0.8
Tidewater, Inc. 0.8 0.5
TOP FIVE MARKET SECTORS AS OF JUNE 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
Energy 21.1 10.2
Retail & Wholesale 8.1 3.3
Finance 7.8 17.3
Durables 7.0 5.9
Media & Leisure 6.1 2.9
ASSET ALLOCATION
AS OF JUNE 30, 1996 * AS OF DECEMBER 31, 1995 **
Row: 1, Col: 1, Value: 15.1
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 2.3
Row: 1, Col: 4, Value: 42.6
Row: 1, Col: 5, Value: 40.0
Row: 1, Col: 1, Value: 4.9
Row: 1, Col: 2, Value: 1.3
Row: 1, Col: 3, Value: 11.8
Row: 1, Col: 4, Value: 42.0
Row: 1, Col: 5, Value: 40.0
Stocks 82.6%
Bonds 2.3%
Other 0.0%
Short-term
investments 15.1%
FOREIGN
INVESTMENTS 15.2%
Stocks 83.0%
Bonds 11.8%
Other 0.3%
Short-term
investments 4.9%
FOREIGN
INVESTMENTS 20.4%
*
**
INVESTMENTS JUNE 30, 1996 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 82.3%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 1.4%
AEROSPACE & DEFENSE - 0.9%
Boeing Co. 389,700 $ 33,953
C A E Industries Ltd. 4,678,100 38,940
General Motors Corp. Class H 789,200 47,451
Harsco Corp. 225,100 15,138
Northrop Grumman Corp. 237,800 16,200
Orbital Sciences Corp. (a) 41,700 678
Sundstrand Corp. 798,800 29,256
181,616
DEFENSE ELECTRONICS - 0.2%
Raytheon Co. 690,600 35,652
Tech-Sym Corp. (a) 119,100 3,543
39,195
SHIP BUILDING & REPAIR - 0.3%
Avondale Industries, Inc. (a) 581,000 10,458
General Dynamics Corp. 631,400 39,146
49,604
TOTAL AEROSPACE & DEFENSE 270,415
BASIC INDUSTRIES - 5.7%
CHEMICALS & PLASTICS - 3.3%
Air Products & Chemicals, Inc. 330,600 19,092
Asahi Chemical Industry Co. Ltd. 3,227,000 23,003
Cambrex Corp. 374,100 19,126
Crompton & Knowles Corp. 2,317,900 38,825
Dow Chemical Co. 286,700 21,789
du Pont (E.I.) de Nemours & Co. 2,283,900 180,714
Furon Co. 128,100 3,170
Grace (W.R.) & Co. 556,200 39,421
Hercules, Inc. 769,400 42,509
ICI (Imperial Chemical Industries) PLC Ord. 714,200 8,736
International Specialty Products, Inc. (a) 922,300 10,145
Monsanto Co. 253,500 8,239
Praxair, Inc. 1,537,000 64,938
Raychem Corp. 476,800 34,270
Rohm & Haas Co. 128,500 8,063
Sealed Air Corp. (a) 1,294,000 43,511
Union Carbide Corp. 1,636,200 65,039
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
CHEMICALS & PLASTICS - CONTINUED
Uniroyal Chemical Corp. (a)(c) 1,280,900 $ 19,053
Witco Corp. 325,200 11,179
660,822
IRON & STEEL - 0.2%
Kobe Steel Ltd. (a) 11,093,000 31,852
Mueller Industries, Inc. (a) 148,100 6,146
37,998
METALS & MINING - 1.1%
Aluminum Co. of America 347,600 19,944
Belden, Inc. 25,000 750
Falconbridge Ltd. 620,200 13,509
Falconbridge Ltd. 1st Installment Receipt (d) 1,076,300 8,683
Freeport-McMoRan Copper & Gold, Inc. Class B 2,207,500 70,364
Inco Ltd. 1,842,900 59,400
QNI Ltd. 8,680,400 19,415
SGL Carbon AG 120,900 14,116
Titanium Metals Corp. (a) 213,500 5,524
Tongkah Holdings BHD (c) 9,587,000 15,985
227,690
PACKAGING & CONTAINERS - 0.4%
Bemis Co., Inc. 179,500 6,283
Corning, Inc. 650,900 24,978
Owens-Illinois, Inc. (a) 2,959,700 47,355
78,616
PAPER & FOREST PRODUCTS - 0.7%
Arab Malaysian Corp. BHD 7,961,000 31,270
Boise Cascade Corp. 95,400 3,494
Champion International Corp. 438,900 18,324
Fort Howard Corp. (a) 319,300 6,346
Georgia-Pacific Corp. 312,500 22,188
International Paper Co. 56,800 2,095
Malakoff BHD 8,544,000 37,326
Pentair, Inc. 260,000 7,800
128,843
TOTAL BASIC INDUSTRIES 1,133,969
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONGLOMERATES - 1.1%
Alexander & Baldwin, Inc. 66,300 $ 1,599
Allied-Signal, Inc. 1,156,500 66,065
American Standard Companies, Inc. (a) 269,400 8,890
Berkshire Hathaway, Inc. (a) 270 8,289
Brascan Ltd. Class A 670,200 12,484
Crane Co. 334,700 13,723
Suncor, Inc. 44,100 1,394
Tyco International Ltd. 2,638,100 107,503
United Technologies Corp. 40,800 4,692
224,639
CONSTRUCTION & REAL ESTATE - 2.0%
BUILDING MATERIALS - 0.3%
Dexter Corp. 73,500 2,187
Elcor Corp. 247,700 4,521
Hume Industries BHD 6,798,000 33,241
Masco Corp. 302,000 9,136
Schuller Corp. 809,300 8,396
Southdown, Inc. 212,900 5,003
York International Corp. 36,100 1,868
64,352
CONSTRUCTION - 0.6%
Centex Corp. 74,200 2,309
Daiwa House Industry Co. Ltd. 2,126,000 32,945
Lennar Corp. 831,572 20,789
Oakwood Homes Corp. 1,165,500 24,038
Skyline Corp. 5,600 140
YTL Corp. BHD 7,076,250 36,870
117,091
ENGINEERING - 0.4%
EG & G, Inc. 708,700 15,148
Fluor Corp. 845,500 55,275
Foster Wheeler Corp. 294,000 13,193
MasTec, Inc. (a) 187,400 4,732
88,348
REAL ESTATE - 0.3%
Bandar Raya Development BHD 4,483,000 7,546
Catellus Development Corp. 114,300 1,043
Rouse Co. (The) 1,549,900 40,104
48,693
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
REAL ESTATE INVESTMENT TRUSTS - 0.4%
Crescent Real Estate Equities, Inc. 489,200 $ 17,977
Felcor Suite Hotels, Inc. 215,600 6,576
General Growth Properties, Inc. 126,200 3,045
Speiker Properties, Inc. 1,056,800 28,798
Starwood Lodging Trust combined certificate 446,900 16,256
Weingarten Realty Investors (SBI) 6,000 233
72,885
TOTAL CONSTRUCTION & REAL ESTATE 391,369
DURABLES - 7.0%
AUTOS, TIRES, & ACCESSORIES - 5.1%
Autozone, Inc. (a) 525,600 18,265
Chrysler Corp. 3,439,700 213,261
Dana Corp. 1,473,400 45,675
Danaher Corp. 1,063,900 46,280
Ford Motor Co. 4,688,900 151,803
General Motors Corp. 4,307,600 225,611
Goodyear Tire & Rubber Co. 463,000 22,340
Honda Motor Co. Ltd. 2,010,000 52,034
Intermet Corp. (a) 1,108,900 15,455
Lear Corp. (a) 2,543,300 89,650
Magna International, Inc. Class A 315,000 14,554
PACCAR, Inc. 160,300 7,855
SPX Corp. 699,900 17,147
Scania AB:
Class A 287,300 7,952
Class B 287,300 7,974
Standard Products Co. 162,800 3,785
TRW, Inc. 283,500 25,480
Toyota Motor Corp. 1,266,000 31,620
996,741
CONSUMER DURABLES - 0.0%
Syratech Corp. (a) 173,500 3,904
CONSUMER ELECTRONICS - 0.6%
Harman International Industries, Inc. 403,900 19,892
Maytag Co. 1,650,400 34,452
Oyl Industries BHD 3,150,000 32,826
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
CONSUMER ELECTRONICS - CONTINUED
Oyl Industries BHD (rights) (a) 315,000 $ 1,389
Sony Corp. 532,800 35,016
123,575
HOME FURNISHINGS - 0.1%
Furniture Brands International, Inc. (a) 1,867,700 20,544
Miller (Herman), Inc. 101,700 3,115
23,659
TEXTILES & APPAREL - 1.2%
Adidas AG 277,500 23,281
Designer Holdings Ltd. (a)(c) 533,900 14,215
Fila Holding Spa sponsored ADR 40,100 3,459
Fruit of the Loom, Inc. Class A (a) 233,400 5,952
Gucci Group NV 187,000 12,062
Intimate Brands, Inc. Class A 868,000 19,856
Jones Apparel Group, Inc. (a) 565,800 27,795
Liz Claiborne, Inc. 963,500 33,361
NIKE, Inc. Class B 543,500 55,844
Stride Rite Corp. 387,400 3,196
Unifi, Inc. 253,700 7,135
Warnaco Group, Inc. Class A 1,051,100 27,066
233,222
TOTAL DURABLES 1,381,101
ENERGY - 20.8%
ENERGY SERVICES - 9.1%
BJ Services Co. (a) 850,547 29,875
Baker Hughes, Inc. 2,571,100 84,525
Carbo Ceramics, Inc. (a) 275,100 6,052
Diamond Offshore Drilling, Inc. (a) 1,514,148 86,685
Dresser Industries, Inc. 4,388,300 129,455
ENSCO International, Inc. (a)(c) 3,791,325 123,218
Energy Ventures, Inc. (a) 679,500 22,084
Falcon Drilling, Inc. (a) 524,300 14,222
Global Marine, Inc. (a) 2,803,300 38,896
Halliburton Co. 3,526,900 195,743
Helmerich & Payne, Inc. 1,087,900 39,844
Nabors Industries, Inc. (a)(c) 5,574,500 90,586
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Newpark Resources, Inc. 239,000 $ 8,783
Noble Drilling Corp. 2,149,900 29,830
Powell Industries, Inc. (a) 41,600 484
Reading & Bates Corp. (a) 1,758,100 38,898
Rowan Companies, Inc. (a) 494,500 7,294
Schlumberger Ltd. 4,531,500 381,779
Smedvig AS (c) 1,749,100 40,461
Smith International, Inc. (a)(c) 3,993,100 120,292
Sonat Offshore Drilling, Inc. (c) 1,483,200 74,902
Tidewater, Inc. (c) 3,465,533 152,050
Transocean Drilling AS (a) 236,000 6,112
Varco International, Inc. (a) 609,000 11,038
Weatherford Enterra, Inc. (a) 2,490,180 74,705
1,807,813
INDEPENDENT POWER - 0.1%
Thermo Electron Corp. (a) 764,700 31,831
OIL & GAS - 11.6%
Amerada Hess Corp. 406,500 21,798
Amoco Corp. 73,400 5,312
Anadarko Petroleum Corp. 1,204,600 69,867
Atlantic Richfield Co. 901,200 106,792
Barrett Resources Corp. (a) 901,200 26,811
Benton Oil & Gas Co. (a) 702,900 15,464
British Petroleum PLC ADR 1,456,896 155,706
Burlington Resources, Inc. 1,363,600 58,635
Camco International, Inc. (c) 2,103,100 71,243
Canada Occidental Petroleum Ltd. 1,966,400 33,096
Canadian Natural Resources Ltd. (a) 445,900 8,323
Chesapeake Energy Corp. (a) 567,900 34,027
Coastal Corp. (The) 1,387,600 57,932
Cooper Cameron Corp. (a)(c) 1,794,800 78,523
Devon Energy Corp. 30,200 740
Diamond Shamrock R&M, Inc. (c) 1,681,200 48,544
Elan Energy, Inc. (a) 161,900 1,484
Enron Oil & Gas Co. 2,536,300 70,699
Enterprise Oil PLC 1,866,400 13,328
Exxon Corp. 710,100 61,690
Forcenergy Gas Exploration, Inc. (a) 328,500 6,200
Imperial Oil Ltd. 260,300 10,996
Kerr-McGee Corp. 443,700 27,010
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Louisiana Land & Exploration Co. 138,700 $ 7,993
NGC Corp. 424,100 6,362
Newfield Exploration Co. (a)(c) 1,028,200 39,971
Noble Affiliates, Inc. (a) 1,007,000 38,014
Norcen Energy Resources Ltd. 109,600 1,925
Northstar Energy Corp. (a) 1,499,300 14,569
Occidental Petroleum Corp. 4,641,800 114,884
Petro-Canada 1,221,600 15,185
Petro-Canada 1st installment receipt (e) 1,547,100 9,644
Phillips Petroleum Co. 3,320,400 139,041
Pogo Producing Co. 1,626,200 61,999
Renaissance Energy Ltd. (a) 2,710,288 71,556
Rio Alto Exploration Ltd. (a)(b) 549,700 3,024
Royal Dutch Petroleum Co.:
Ord. 253,200 39,038
ADR 1,660,800 255,348
Rutherford-Moran Oil Corp. 23,100 563
Santa Fe Energy Resources, Inc. (a) 2,152,100 25,556
Swift Energy Co. (a) 221,000 3,978
Texaco, Inc. 1,306,200 109,558
Tosco Corp. 612,200 30,763
USX-Marathon Group 2,520,300 50,721
Union Pacific Resources Group, Inc. 1,926,300 51,529
United Meridian Corp. (a) 802,800 28,901
Unocal Corp. 4,106,602 138,598
Valero Energy Corp. 450,100 11,253
Vastar Resources, Inc. 375,900 14,049
Vintage Petroleum, Inc. 1,014,000 25,857
2,294,099
TOTAL ENERGY 4,133,743
FINANCE - 7.8%
BANKS - 3.5%
Bangkok Bank PCL (For. Reg.) 3,122,200 42,290
Bank International Indonesia PT (For. Reg.) 1,718,000 8,492
Bank of New York Co., Inc. 389,200 19,947
BankAmerica Corp. 1,519,500 115,102
Chase Manhattan Corp. 452,200 31,937
Citicorp 885,900 73,197
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Cullen Frost Bankers, Inc. 238,000 $ 6,605
First Bank System, Inc. 1,413,400 81,977
First Commerce Corp. 354,400 12,537
Firstar Corp. 104,300 4,811
HSBC Holdings PLC 3,660,000 56,021
HUBCO, Inc. 173,800 3,672
Hang Seng Bank Ltd. 897,000 9,038
Hong Leong Bank BHD 2,289,000 6,422
Krung Thai Bank Ltd. (For. Reg.) 5,968,200 27,965
Mitsui Trust and Banking Co. Ltd. 2,040,000 23,802
NationsBank Corp. 423,100 34,959
Regions Financial Corp. 46,400 2,169
Sakura Bank Ltd. 1,153,000 12,822
Siam City Bank PCL (For. Reg.) 8,987,400 9,643
Texas Regional Bancshares, Inc. Class A (vtg) 95,500 2,388
Thai Farmers Bank PCL 1,629,200 17,834
Thai Military Bank Ltd. (For. Reg.) 3,047,640 12,000
U.S. Bancorp. 1,688,800 61,008
Westpac Banking Corp. 3,633,000 16,108
Zions Bancorp. 93,400 6,795
699,541
CLOSED END INVESTMENT COMPANY - 0.4%
Alliance Global Environment Fund 163,000 2,139
Asia Pacific Fund, Inc. 324,400 4,217
Asia Tigers Fund, Inc. 338,400 3,934
Emerging Markets Infrastructure Fund, Inc. 332,600 3,783
GT Global Developing Markets Fund 642,000 7,142
Malaysia Fund, Inc. 86,000 1,613
Mexico Fund, Inc. (The) 249,200 3,800
Morgan Stanley Asia-Pacific Fund, Inc. 1,608,500 19,302
Morgan Stanley Emerging Markets Fund, Inc. 391,900 6,613
Schroder Asian Growth Fund, Inc. (a) 485,500 6,372
TCW/DW Emerging Markets Opportunities Trust (SBI) 233,600 2,570
Templeton Dragon Fund, Inc. 742,500 9,838
Templeton Emerging Markets Fund, Inc. 166,900 3,171
74,494
CREDIT & OTHER FINANCE - 1.7%
Aames Financial Corp. 2,800 100
Acom Co. Ltd. 331,900 12,979
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - CONTINUED
American Express Co. 1,581,600 $ 70,579
Associates First Capital Corp. (a) 490,900 18,470
Cityscape Financial Corp. 225,200 11,542
Greenpoint Financial Corp. 1,112,600 31,431
Hong Leong Credit BHD 2,931,000 13,862
Hong Leong Finance Ltd. (For. Reg.) 1,199,000 4,196
Household International, Inc. 1,904,688 144,756
Industrial Finance Corp. (For. Reg.) 3,101,200 13,920
PHH Corp. 231,200 13,178
TA Enterprise BHD 7,017,000 10,968
345,981
FEDERAL SPONSORED CREDIT - 0.5%
Federal Home Loan Mortgage Corporation 117,500 10,046
Federal National Mortgage Association 2,680,400 89,793
99,839
INSURANCE - 1.1%
ACE Ltd. 21,100 992
Allmerica Financial Corp. 536,800 15,970
Allstate Corp. 1,771,300 80,816
Conseco, Inc. 1,174,600 46,984
Everest Reinsurance Holdings, Inc. 50,000 1,294
Gainsco, Inc. 599,000 5,915
ITT Hartford Group, Inc. 12,500 666
SunAmerica, Inc. 506,200 28,600
Tokio Marine & Fire Insurance Co. Ltd. (The) 417,000 5,550
Travelers/Aetna Property Casualty Corp. Class A (a) 439,200 12,462
Travelers Group, Inc., (The) 654,450 29,859
229,108
SAVINGS & LOANS - 0.3%
Glendale Federal Bank Federal Savings Bank (a) 1,442,000 26,136
Golden West Financial Corp. 568,600 31,842
57,978
SECURITIES INDUSTRY - 0.3%
Nikko Securities Co. Ltd. 2,115,000 23,713
Nomura Securities Co. Ltd. 617,000 12,036
Peregrine Investments Holdings Ltd. 10,398,000 14,977
50,726
TOTAL FINANCE 1,557,667
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - 2.5%
DRUGS & PHARMACEUTICALS - 0.3%
Alliance Pharmaceutical Corp. (a) 598,400 $ 9,874
Andrx Corp. (a) 78,700 1,190
CIBA-GEIGY AG (Reg.) 2,600 3,163
Sandoz AG (Reg.) 1,800 2,054
Sepracor, Inc. (c) 1,319,400 19,791
Takeda Chemical Industries Ltd. 1,169,000 20,672
56,744
MEDICAL EQUIPMENT & SUPPLIES - 0.6%
Acuson Corp. (a) 122,400 1,958
Bard (C.R.), Inc. 54,500 1,853
Becton, Dickinson & Co. 86,700 6,958
Biomet, Inc. (a) 681,900 9,802
Cardinal Health, Inc. 40,100 2,892
Guidant Corp. 312,600 15,396
Hoya Corp. 1,242,000 40,077
InControl, Inc. (a) 562,000 6,604
Pall Corp. 82,400 1,988
Sofamor/Danek Group, Inc. 169,900 4,715
U.S. Surgical Corp. 1,048,200 32,494
124,737
MEDICAL FACILITIES MANAGEMENT - 1.6%
Columbia/HCA Healthcare Corp. 1,217,500 64,985
HEALTHSOUTH Rehabilitation Corp. (a) 3,769,000 135,685
Health Management Associates, Inc. Class A (a) 1,600,750 32,415
Multicare Companies, Inc. (a) 231,900 4,406
National Surgery Centers, Inc. (a) 220,450 5,842
OrNda Healthcorp (a) 313,000 7,512
Physicians Resource Group, Inc. (a) 187,100 6,244
Quorum Health Group, Inc. (a) 190,500 5,024
Tenet Healthcare Corp. (a) 1,491,900 31,889
Total Renal Care Holdings, Inc. (a) 194,300 8,209
Vencor, Inc. (a) 456,600 13,926
316,137
TOTAL HEALTH 497,618
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HOLDING COMPANIES - 0.3%
Astra International PT (For. Reg.) 5,041,000 $ 7,313
First Pacific Co. Ltd. 8,142,000 12,516
Citic Pacific Ltd. Ord. 2,336,000 9,445
Lonrho Ltd. Ord. 3,949,900 11,344
Malaysian Plantations BHD (c) 14,164,000 19,075
59,693
INDUSTRIAL MACHINERY & EQUIPMENT - 4.9%
ELECTRICAL EQUIPMENT - 1.2%
Alcatel Alsthom Cie Generale d'Electricite SA 419,200 36,512
AMETEK, Inc. 312,800 6,803
Avid Technology, Inc. (a) 496,300 9,182
Charter Power Systems, Inc. 42,100 1,463
Computer Products, Inc. (a) 478,100 8,187
Emerson Electric Co. 303,800 27,456
Hutchison Whampoa Ltd. Ord. 294,000 1,850
Loral Space & Communications Ltd. (a) 3,245,700 44,223
Omron Corp. 1,345,000 28,566
Roper Industries, Inc. 43,100 2,101
Sensormatic Electronics Corp. (a) 118,500 1,940
United Engineers BHD 2,356,000 16,336
Westinghouse Electric Corp. 2,392,400 44,859
229,478
INDUSTRIAL MACHINERY & EQUIPMENT - 2.6%
BW/IP Holdings, Inc. Class A 561,600 10,670
Case Corp. 1,416,300 67,982
Caterpillar, Inc. 1,778,400 120,487
Cooper Industries, Inc. 689,100 28,598
Deere & Co. 846,400 33,856
Detroit Diesel Corp. (a) 150,300 2,912
Dover Corp. 611,500 28,205
Global Industrial Technologies, Inc. (a) 46,600 746
Graham-Field Health Products, Inc. (a) 42,300 365
Harnischfeger Industries, Inc. 544,400 18,101
Ingersoll-Rand Co. 1,392,700 60,931
Kaydon Corp. 726,500 31,240
Parker-Hannifin Corp. 193,300 8,191
Stanley Works 1,092,000 32,486
Thermo Fibertek, Inc. (a) 265,650 4,483
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
UCAR International, Inc. (a) 1,200,000 $ 49,950
Van Der Horst Ltd. 2,573,000 12,031
511,234
POLLUTION CONTROL - 1.1%
Allied Waste Industries, Inc. (a) 1,101,600 9,777
Republic Industries, Inc. 132,000 3,845
Sanifill, Inc. (a) 792,100 39,011
Sevenson Environmental Services, Inc. (c) 401,200 6,971
Thermo Instrument Systems, Inc. (a) 109,100 3,518
USA Waste Services, Inc. (a) 1,178,400 34,910
United Waste Systems, Inc. (a) 1,377,600 44,428
WMX Technologies, Inc. 2,475,600 81,075
223,535
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 964,247
MEDIA & LEISURE - 6.1%
BROADCASTING - 1.0%
American Radio Systems Corp. Class A (a)(c) 705,800 30,349
Asia Satellite Telecommunications Holdings Ltd. 2,180,300 6,464
Chancellor Corp. Class A 51,800 1,618
Clear Channel Communications, Inc. (a) 165,200 13,608
Emmis Broadcasting Corp. Class A (a) 95,000 4,750
EZ Communications, Inc. Class A (a) 9,200 219
Home Shopping Network, Inc. (a) 2,041,000 24,492
Infinity Broadcasting Corp. Class A 1,380,800 41,425
Jacor Communications, Inc. Class A (a) 309,500 9,556
PanAmSat Corp. (a) 283,600 8,224
Paxson Communications Corp. (a) 630,500 6,699
Renaissance Communications Corp. (a) 720,600 23,239
TCI Group Class A 494,600 8,965
U.S. Satellite Broadcasting Co., Inc. Class A 195,100 7,365
Viacom, Inc. Class A (a) 12,100 461
187,434
ENTERTAINMENT - 0.2%
Ameristar Casinos, Inc. 95,300 1,239
Carmike Cinemas, Inc. Class A (a) 28,000 756
Disney (Walt) Co. 185,000 11,632
MGM Grand, Inc. (a) 29,000 1,156
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
ENTERTAINMENT - CONTINUED
Multi-Purpose Holdings BHD 12,703,000 $ 20,468
Regal Cinemas, Inc. (a) 213,100 9,749
45,000
LEISURE DURABLES & TOYS - 1.2%
Brunswick Corp. 14,200 284
Callaway Golf Co. 275,100 9,147
Champion Enterprises, Inc. (a) 1,355,100 28,288
Coleman, Inc. (a) 381,600 16,170
Harley Davidson, Inc. 755,700 31,078
Hasbro, Inc. 1,547,200 55,312
K2, Inc. (a) 81,100 2,200
Mattel, Inc. 1,634,225 46,780
Nintendo Co. Ltd. Ord. 521,400 38,782
Polaris Industries, Inc. 428,800 14,633
242,674
LODGING & GAMING - 2.3%
Bally Entertainment Corp. 2,025,000 55,688
Circus Circus Enterprises, Inc. (a) 1,782,900 73,099
HFS, Inc. (a) 880,460 61,632
Hilton Hotels Corp. 847,500 95,344
Host Marriott Corp. (a) 3,077,900 40,397
ITT Corp. 768,000 50,880
International Game Technology Corp. 901,200 15,208
Interstate Hotels Co. 147,200 3,275
Mirage Resorts, Inc. (a) 367,750 19,767
Penske Motorsports, Inc. 84,200 2,231
Promus Hotel Corp. (a) 12,300 364
Renaissance Hotel Group NV 29,600 629
Showboat, Inc. 612,750 18,459
Sun International Hotels Ltd. Ord. (a) 177,300 8,599
445,572
PUBLISHING - 1.1%
Belo (A.H.) Corp. Class A 27,700 1,032
Dow Jones & Co., Inc. 32,500 1,357
Harcourt General, Inc. 915,000 45,750
K-III Communications Corp. (a)(c) 981,800 12,273
Knight-Ridder, Inc. 629,700 45,653
New York Times Co., (The) Class A 1,361,500 44,419
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
PUBLISHING - CONTINUED
Playboy Enterprises, Inc. Class B (a) 476,400 $ 7,027
Times Mirror Co. Class A 1,299,100 56,511
214,022
RESTAURANTS - 0.3%
Daka International, Inc. (a) 18,600 437
Landry's Seafood Restaurants, Inc. (a)(c) 1,143,700 28,307
Outback Steakhouse, Inc. (a) 767,500 26,467
Papa John's International, Inc. (a) 130,200 6,347
Shoney's, Inc. (a) 472,400 5,137
66,695
TOTAL MEDIA & LEISURE 1,201,397
NONDURABLES - 1.0%
BEVERAGES - 0.1%
Coca-Cola Enterprises, Inc. 51,000 1,766
PepsiCo, Inc. 354,600 12,544
Seagram Co. Ltd. 377,800 12,676
26,986
FOODS - 0.0%
Dole Food, Inc. 93,500 4,020
HOUSEHOLD PRODUCTS - 0.4%
Gillette Co. 304,600 18,999
Inbrand Corp. (a) 196,200 5,494
Metro Pacific, Inc. Class B 130,851,000 38,971
Premark International, Inc. 373,500 6,910
Safeskin Corp. (a) 231,500 9,607
79,981
TOBACCO - 0.5%
Grupo Carso SA de CV Class A-1 (a) 9,781,000 69,376
Gudang Garam PT (For. Reg.) 1,955,000 8,382
Sampoerna Hanjaya Mandala (For. Reg.) 1,307,500 14,893
92,651
TOTAL NONDURABLES 203,638
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
PRECIOUS METALS - 2.8%
Agnico Eagle Mines Ltd. 270,700 $ 4,417
Barrick Gold Corp. 1,847,700 50,205
Bre-X Minerals Ltd. (a) 4,433,500 74,133
Bresea Resources Ltd. (a) 323,800 3,028
De Beers Consolidated Mines Ltd. ADR 179,200 6,048
Euro-Nevada Mining Ltd. 502,200 21,546
Euro-Nevada Mining Ltd. (b) 71,500 3,068
Franco Nevada Mining Corp. 709,800 45,028
Getchell Gold Corp. 676,056 22,310
Greenstone Resources Ltd. (a) 505,700 5,934
Indochina Goldfields Ltd. (b) 948,400 8,173
Kinross Gold Corp. (a) 4,196,900 31,703
Newmont Gold Co. 486,300 24,497
Newmont Mining Corp. 3,035,300 149,867
Placer Dome, Inc. 1,785,600 42,756
TVI Pacific, Inc. (a) 679,700 857
TVI Pacific, Inc. (a)(b) 1,769,700 2,232
Western Mining Holdings Ltd. 7,257,100 52,009
547,811
RETAIL & WHOLESALE - 7.9%
APPAREL STORES - 2.4%
AnnTaylor Stores Corp. (a) 497,000 10,064
Burton Group PLC Ord. 4,000,000 9,625
Cato Corp. Class A (c) 1,615,000 9,690
Charming Shoppes, Inc. (c) 7,457,100 52,666
Gap, Inc. 2,284,500 73,390
Goody's Family Clothing (c) 1,535,300 15,737
Limited, Inc. (The) 2,114,204 45,455
Loehmanns, Inc. (a)(c) 327,500 7,533
Melville Corp. 2,841,700 115,089
Payless Shoesource, Inc. (a) 1,071,332 34,015
Ross Stores, Inc. 488,500 16,975
Saks Holdings, Inc. (a) 378,500 12,916
TJX Companies, Inc. 1,912,900 64,560
467,715
GENERAL MERCHANDISE STORES - 1.8%
Consolidated Stores Corp. (a) 191,900 7,052
Dayton Hudson Corp. 668,400 68,929
Dillard Department Stores, Inc. Class A 1,095,300 39,978
Federated Department Stores, Inc. (a) 360,200 12,292
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
GENERAL MERCHANDISE STORES - CONTINUED
K mart Corp. 2,126,200 $ 26,312
Kohls Corp. (a) 135,300 4,955
May Department Stores Co. (The) 180,800 7,910
Mercantile Stores Co., Inc. 163,200 9,568
Meyer (Fred), Inc. (a) 164,600 4,835
Michaels Stores, Inc. (a) 1,107,400 18,826
Price/Costco, Inc. (a) 1,265,400 27,364
Stein Mart, Inc. (a) 797,100 14,547
Value City Department Stores, Inc. (a) 541,800 5,960
Woolworth Corp. (a) 5,044,000 113,490
362,018
GROCERY STORES - 1.9%
Albertson's, Inc. 436,300 18,052
American Stores Co. 606,600 25,022
Central Garden & Pet Co. (a)(c) 465,800 8,384
Food Lion, Inc.:
Class A 5,559,900 44,132
Class B 429,800 3,331
Giant Food, Inc. Class A 106,500 3,821
Great Atlantic & Pacific Tea Co., Inc. 1,130,200 37,155
Loblaw Companies Ltd. 1,620,000 13,128
Performance Food Group Co. (a) 371,600 9,662
Provigo, Inc. (a) 4,196,200 22,465
Quality Food Centers, Inc. (a) 115,900 2,984
Richfood Holdings, Inc. Class A (c) 2,325,700 75,585
Safeway, Inc. (a) 2,841,300 93,763
Vons Companies, Inc. (a) 154,100 5,759
Weis Markets, Inc. 63,300 2,065
Whole Foods Market, Inc. (a) 286,000 7,579
372,887
RETAIL & WHOLESALE, MISCELLANEOUS - 1.8%
Circuit City Stores, Inc. 822,900 29,727
Daisytek International Corp. 12,900 542
Duty Free International, Inc. 338,000 5,155
Home Depot, Inc., (The) 3,302,000 178,308
Lowe's Companies, Inc. 892,400 32,238
Orchard Supply Hardware Corp. (a) 196,600 5,923
Petco Animal Supplies, Inc. (a) 83,700 2,406
PETsMART, Inc. (a) 65,300 3,118
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISCELLANEOUS - CONTINUED
Tiffany & Co., Inc. 124,500 $ 9,089
Toys "R" Us, Inc. 3,138,300 89,442
355,948
TOTAL RETAIL & WHOLESALE 1,558,568
SERVICES - 0.7%
ADVERTISING - 0.1%
Interpublic Group of Companies, Inc. 82,500 3,868
WPP Group PLC 2,434,300 8,200
12,068
LEASING & RENTAL - 0.0%
Team Rental Group, Inc. Class A (a) 4,600 64
PRINTING - 0.1%
Deluxe Corp. 309,000 10,970
Harland (John H.) Co. 119,400 2,940
13,910
SERVICES - 0.5%
APAC Teleservices, Inc. (a) 431,000 15,516
Block (H&R), Inc. 69,100 2,254
Coach USA, Inc. (a) 120,200 2,674
HCIA, Inc. (a) 255,400 16,090
Manpower, Inc. 359,800 14,122
National Service Industries, Inc. 848,800 33,209
Norrell Corp. GA 25,000 1,228
Robert Half International, Inc. (a) 56,600 1,578
Service Corp. International 265,100 15,244
Sitel Corp. (a) 58,600 2,425
104,340
TOTAL SERVICES 130,382
TECHNOLOGY - 5.2%
COMMUNICATIONS EQUIPMENT - 0.5%
Cisco Systems, Inc. (a) 670,500 37,967
Dynatech Corp. (a)(c) 983,300 31,957
Echostar Communications Corp. Class A (a) 274,300 7,749
Northern Telecom Ltd. 555,700 30,260
107,933
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - 1.7%
Acxiom Corp. (a) 44,600 $ 1,522
Ascend Communications, Inc. (a) 63,200 3,555
BBN Corp. 115,900 2,521
BMC Software, Inc. (a) 164,900 9,853
Broadway & Seymour, Inc. (a) 12,700 152
CACI International, Inc. Class A (a) 411,400 6,480
CUC International, Inc. (a) 470,500 16,703
Ceridian Corp. (a) 1,963,800 99,172
Computer Sciences Corp. (a) 233,100 17,424
Compuware Corp. (a) 37,100 1,465
Documentum, Inc. (a) 392,500 11,971
ECI Telecom Ltd. 1,164,500 27,075
Electronic Arts, Inc. 198,500 5,310
Equifax Inc. 649,900 17,060
Fair Issac & Company, Inc. 20,400 903
First Data Corp. 356,100 28,354
Fiserv, Inc. 52,700 1,581
GT Interactive Software, Inc. (a) 225,800 3,782
ICT Group, Inc. (a) 73,000 1,405
Keane, Inc. (a) 412,700 15,218
Metromail Corp. (a) 362,900 8,120
Micrografx, Inc. (a) 295,600 4,323
National Data Corp. 81,600 2,795
Oracle Corp. (a) 608,000 23,978
Policy Management Systems Corp. (a) 90,700 4,535
SunGard Data Systems, Inc. (a) 184,600 7,407
Vanstar Corp. (a)(c) 916,600 15,353
338,017
COMPUTERS & OFFICE EQUIPMENT - 1.3%
Bell & Howell Co. (a)(c) 975,700 31,832
Canon, Inc. 3,965,000 82,406
Compaq Computer Corp. (a) 302,200 14,883
Data General Corp. (a) 234,100 3,043
Dell Computer Corp. (a) 155,400 7,906
Diebold, Inc. 389,600 18,798
FileNet Corp. (a)(c) 809,100 29,532
Hewlett-Packard Co. 75,700 7,542
Kronos, Inc. (a)(c) 761,500 27,033
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Stratus Computer, Inc. (a) 809,600 $ 23,478
Sun Microsystems, Inc. (a) 74,900 4,410
VeriFone, Inc. (a) 241,300 10,195
261,058
ELECTRONIC INSTRUMENTS - 0.4%
ADE Corp. 113,000 1,610
Perkin-Elmer Corp. 1,438,300 69,398
Waters Corp. (a) 385,600 12,725
83,733
ELECTRONICS - 0.7%
ESS Technology, Inc. (a) 412,000 7,622
Griffon Corp. (a) 692,600 5,627
Intel Corp. 606,200 44,519
OnTrak Systems, Inc. (a) 42,700 694
Storage Technology Corp. (a) 1,702,100 65,105
Zero Corp. 482,400 10,311
133,878
PHOTOGRAPHIC EQUIPMENT - 0.6%
Eastman Kodak Co. 281,200 21,863
Fuji Photo Film Co. Ltd. 2,003,000 63,173
Polaroid Corp. 519,500 23,702
108,738
TOTAL TECHNOLOGY 1,033,357
TRANSPORTATION - 2.5%
AIR TRANSPORTATION - 0.6%
AMR Corp. 112,800 10,265
Atlantic Southeast Airlines, Inc. 540,800 15,278
Comair Holdings, Inc. 247,800 6,691
Delta Air Lines, Inc. 713,900 59,253
Mesa Airlines, Inc. 50,000 594
Northwest Airlines Corp. Class A (a) 50,000 1,975
UAL Corp. (a) 429,700 23,095
USAir Group, Inc. 199,100 3,584
120,735
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
RAILROADS - 1.9%
Bombardier, Inc. Class B 2,407,500 $ 36,107
Burlington Northern Santa Fe Corp. 1,719,200 139,040
CSX Corp. 1,932,800 93,258
Canadian Pacific Ltd. Ord. 2,424,200 53,158
Tranz Rail Holdings Ltd. sponsored ADR (a) 276,900 3,842
Wisconsin Central Transportation Corp. (a) 1,549,200 50,349
375,754
SHIPPING - 0.0%
Trico Marine Services, Inc. (a) 103,600 2,305
TRUCKING & FREIGHT - 0.0%
Expeditors International of Washington, Inc. 1,900 59
USFreightways Corp. 320,500 6,250
Yellow Corp. (a) 101,000 1,338
7,647
TOTAL TRANSPORTATION 506,441
UTILITIES - 2.6%
CELLULAR - 0.1%
Advanced Information Services PCL (For. Reg.) 60,100 942
Commnet Cellular, Inc. (a) 23,200 696
Palmer Wireless, Inc. (a) 666,900 13,338
360 Degrees Communications Co. (a) 422,100 10,130
25,106
ELECTRIC UTILITY - 0.2%
Iberdrola SA 900,000 9,232
Korea Electric Power Corp. 696,400 28,124
Korea Electric Power Corp. ADR 119,400 2,895
40,251
GAS - 0.4%
Consolidated Natural Gas Co. 9,200 481
Enron Corp. 709,100 28,984
Nova Corp. 3,364,700 30,475
Sonat, Inc. 516,200 23,229
Williams Companies, Inc. 17,000 842
84,011
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
TELEPHONE SERVICES - 1.9%
BCE, Inc. 1,660,500 $ 65,456
Cincinnati Bell, Inc. 185,500 9,669
Comsat Corp., Series 1 431,400 11,216
DDI Corp. Ord. 209 1,821
LCI International, Inc. (a) 865,500 27,155
Lucent Technologies, Inc. 630,000 23,861
Sprint Corp. 1,260,800 52,954
WorldCom, Inc. (a) 3,328,800 184,333
376,465
TOTAL UTILITIES 525,833
TOTAL COMMON STOCKS
(Cost $14,220,629) 16,321,888
CONVERTIBLE PREFERRED STOCKS - 0.3%
CONSTRUCTION & REAL ESTATE - 0.0%
REAL ESTATE - 0.0%
Rouse Co., Series A 150,400 8,723
ENERGY - 0.1%
OIL & GAS - 0.1%
Diamond Shamrock, Inc. $2.50 (b) 160,800 9,728
Valero Energy Corp. $3.125 100,000 5,250
14,978
MEDIA & LEISURE - 0.0%
BROADCASTING - 0.0%
American Radio System Corp. $3.50 depository shares
representing 1/20 (b) 72,400 4,272
RETAIL & WHOLESALE - 0.2%
APPAREL STORES - 0.1%
TJX Companies, Inc., Series E, $7.00 73,500 13,818
CONVERTIBLE PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
GENERAL MERCHANDISE STORES - 0.1%
K Mart Financing I $3.875 212,200 $ 11,512
TOTAL RETAIL & WHOLESALE 25,330
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $50,944) 53,303
CORPORATE BONDS - 0.3%
MOODY'S PRINCIPAL
RATINGS (F) AMOUNT (000S)
ENERGY - 0.2%
ENERGY SERVICES - 0.1%
Nabors Industries, Inc. 5%, 5/1/06 Ba2 $ 9,476,000 10,518
OIL & GAS - 0.1%
Pogo Producing Co. 5 1/2%, 6/15/06 (b) B2 13,900,000 14,943
TOTAL ENERGY 25,461
HEALTH - 0.1%
MEDICAL FACILITIES MANAGEMENT - 0.1%
NovaCare, Inc. 5 1/2%, 1/15/00 B1 19,870,000 17,486
MEDIA & LEISURE - 0.0%
BROADCASTING - 0.0%
Home Shopping Network, Inc.
5 7/8%, 3/1/06 (b) B- 4,152,000 4,775
Jacor Communications, Inc. liquid yield
option notes 0%, 6/12/11 B 3,870,000 1,828
6,603
TECHNOLOGY - 0.0%
ELECTRONICS - 0.0%
National Semiconductor Corp.
6 1/2%, 10/1/02 (b) Ba2 2,780,000 2,405
TOTAL CORPORATE BONDS
(Cost $49,141) 51,955
U.S. TREASURY OBLIGATIONS - 5.3%
MOODY'S PRINCIPAL VALUE (NOTE 1)
RATINGS (F) AMOUNT (000S) (000S)
U.S. Treasury Bills, yields at date of purchase
4.93% to 5.03%, 7/18/96 to 7/25/96 $ 656,000 $ 654,464
7 1/8%, 2/15/23 Aaa 33,100 33,457
6 1/4%, 8/15/23 Aaa 175,500 159,101
7 1/2%, 11/15/24 Aaa 90,400 95,824
7 5/8%, 2/15/25 Aaa 23,110 24,901
6%, 2/15/26 Aaa 100,000 88,672
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,069,594) 1,056,419
REPURCHASE AGREEMENTS - 11.8%
MATURITY
AMOUNT (000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 5.46%, dated
6/28/96 due 7/1/96 $ 2,347,233 2,346,165
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $17,736,473) $ 19,829,730
CURRENCY TYPE ABBREVIATIONS
CAD - Canadian dollars
LEGEND
1. Non-income producing
2. 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 $52,620,000 or 0.3% of net
assets.
3. Affiliated company (see Note 7 of Notes to Financial Statements).
4. Purchased on an installment basis. Market value reflects only those
payments made through June 30, 1996. The remaining installments aggregating
CAD 10,225,000 are due July 31, 1996 and January 31, 1997.
5. Purchased on an installment basis. Market value reflects only those
payments made through June 30, 1996. The remaining installments aggregating
CAD 6,575,000 are due September 23, 1996 and March 24, 1997.
6. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 84.8%
Canada 4.4
Japan 2.9
Netherlands 1.5
Malaysia 1.4
United Kingdom 1.1
Others (individually less than 1%) 3.9
TOTAL 100.0%
INCOME TAX INFORMATION
At June 30, 1996, the aggregate cost of investment securities for income
tax purposes was $17,748,959,000. Net unrealized appreciation aggregated
$2,080,771,000, of which $2,341,841,000 related to appreciated investment
securities and $261,070,000 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) JUNE 30, 1996 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 19,829,730
agreements of $2,346,165) (cost $17,736,473) -
See accompanying schedule
Cash 957
Receivable for investments sold 267,947
Receivable for fund shares sold 43,206
Dividends receivable 19,521
Interest receivable 9,429
Other receivables 606
TOTAL ASSETS 20,171,396
LIABILITIES
Payable for investments purchased $ 353,906
Payable for fund shares redeemed 27,739
Accrued management fee 9,152
Other payables and accrued expenses 6,657
Collateral on securities loaned, at value 115,337
TOTAL LIABILITIES 512,791
NET ASSETS $ 19,658,605
Net Assets consist of:
Paid in capital $ 16,541,627
Undistributed net investment income 118,083
Accumulated undistributed net realized gain (loss) on 905,752
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 2,093,143
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 499,625 shares outstanding $ 19,658,605
NET ASSET VALUE and redemption price per share $39.35
($19,658,605 (divided by) 499,625 shares)
Maximum offering price per share (100/97.00 of $39.35) $40.57
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED JUNE 30, 1996 (UNAUDITED)
INVESTMENT INCOME $ 102,443
Dividends (including $2,059 received from affiliated
issuers)
Special dividend from Schuller Corp. 14,957
Interest (including income on securities loaned of $992) 77,598
TOTAL INCOME 194,998
EXPENSES
Management fee $ 52,907
Basic fee
Performance adjustment 1,442
Transfer agent fees 19,680
Accounting and security lending fees 447
Non-interested trustees' compensation 29
Custodian fees and expenses 1,223
Registration fees 1,959
Audit 71
Legal 39
Miscellaneous 84
Total expenses before reductions 77,881
Expense reductions (3,850) 74,031
NET INVESTMENT INCOME 120,967
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain of 950,647
$22,645
on sales of investments in affiliated issuers)
Foreign currency transactions 9,363 960,010
Change in net unrealized appreciation (depreciation) on:
Investment securities 393,586
Assets and liabilities in foreign currencies (5,900) 387,686
NET GAIN (LOSS) 1,347,696
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 1,468,663
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED DECEMBER 31,
JUNE 30, 1996 1995
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 120,967 $ 50,900
Net investment income
Net realized gain (loss) 960,010 2,153,716
Change in net unrealized appreciation (depreciation) 387,686 1,261,176
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,468,663 3,465,792
FROM OPERATIONS
Distributions to shareholders - (32,239)
From net investment income
From net realized gain (813,982) (1,121,208)
TOTAL DISTRIBUTIONS (813,982) (1,153,447)
Share transactions 5,068,004 5,506,303
Net proceeds from sales of shares
Reinvestment of distributions 802,684 1,134,123
Cost of shares redeemed (1,724,626) (2,789,091)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 4,146,062 3,851,335
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 4,800,743 6,163,680
NET ASSETS
Beginning of period 14,857,862 8,694,182
End of period (including undistributed net investment $ 19,658,605 $ 14,857,862
income (loss) of $118,083 and $(2,312),
respectively)
OTHER INFORMATION
Shares
Sold 132,076 150,801
Issued in reinvestment of distributions 21,705 30,067
Redeemed (44,914) (77,218)
Net increase (decrease) 108,867 103,650
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1996
(UNAUDITED) 1995 1994 1993 F 1992 D 1991
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 38.02 $ 30.28 $ 30.84 $ 27.47 $ 25.60 $ 17.35
beginning of period
Income from Investment
Operations
Net investment .24 I .03 .06 .14 .32 E .22
income
Net realized and 3.09 10.93 (.40) 5.66 3.67 9.20
unrealized gain
(loss)
Total from investment 3.33 10.96 (.34) 5.80 3.99 9.42
operations
Less Distributions - (.09) - (.11) (.20) (.11)
From net investment
income
In excess of net - - - (.07) - -
investment income
From net realized (2.00) (3.13) (.22) (2.25) (1.92) (1.06)
gain
Total distributions (2.00) (3.22) (.22) (2.43) (2.12) (1.17)
Net asset value, end $ 39.35 $ 38.02 $ 30.28 $ 30.84 $ 27.47 $ 25.60
of period
TOTAL RETURN B, C 9.10% 36.28% (1.12) 21.43% 15.89 54.92
% % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 19,659 $ 14,858 $ 8,694 $ 6,208 $ 1,986 $ 1,000
period (in millions)
Ratio of expenses to .90% A .98% 1.03% 1.08% .87 .89
average net assets % %
Ratio of expenses to .86% A .96% 1.00% 1.06% .87 .89
average net assets , G G G G % %
after expense
reductions
Ratio of net investment 1.40% A .44% .59% .46% 1.19 1.01
income to average % %
net assets
Portfolio turnover rate 199% A 223% 235% 255% 297 217
% %
</TABLE>
Average commission rate H $ .0350
A ANNUALIZED B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. C THE TOTAL RETURNS
WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE
PERIODS SHOWN (SEE NOTE 6 OF NOTES TO FINANCIAL STATEMENTS). D AS OF
JANUARY 1, 1992 THE FUND DISCONTINUED THE USE OF EQUALIZATION ACCOUNTING.
E NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD. F 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, NET INVESTMENT
INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES. G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S
EXPENSES (SEE NOTE 6 OF NOTES TO FINANCIAL STATEMENTS). H FOR FISCAL YEARS
BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS
AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS
ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND
DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING
PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.
I INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM SCHULLER
CORP. WHICH AMOUNTED TO $.03 PER SHARE.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1996 (Unaudited)
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 financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. 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
of their purchase date 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 and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts and foreign currency options, disposition of foreign currencies,
currency gains and losses realized between the trade and settlement dates
on securities transactions, and the difference between the amount of net
investment income accrued and the U.S. dollar amount actually received. The
effects of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or loss
on investment securities.
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 substantially 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. Investment income
is recorded
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
net of foreign taxes withheld where recovery of such taxes is uncertain.
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, which may result in distribution
reclassifications, are primarily due to differing treatments for litigation
proceeds, futures and options transactions, foreign currency transactions,
passive foreign investment companies (PFIC), market discount, partnerships,
non-taxable dividends, and losses deferred due to wash sales. 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 and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences that will reverse in a subsequent period. Any taxable income or
gain remaining at fiscal year end is distributed in the following year.
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.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
agreements that mature in 60 days or less from the date of purchase, and
are collateralized by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the stock market and to fluctuations in
currency values. Buying futures, writing puts, and buying calls tend to
increase the fund's exposure to the underlying instrument. Selling futures,
buying puts, and writing calls tend to decrease the fund's exposure to the
underlying instrument, or hedge other fund investments. Losses may arise
from changes in the value of the underlying instruments, if there is an
illiquid secondary market for the contracts, or if the counterparties do
not perform under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $17,023,412,000 and $14,841,102,000, respectively, of which U.S.
government and government agency obligations aggregated $278,937,000 and
$717,345,000, 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 and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2500% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. The
basic fee is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on the fund's investment performance as compared
to the appropriate index over a specified period of time. For
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
the period, the management fee was equivalent to an annualized rate of .63%
of average net assets after the performance adjustment.
SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an
affiliate of FMR and the general distributor of the fund, received sales
charges of $10,544,000 on sales of shares of the fund.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
FSC receives account fees and asset-based fees that vary according to
account size and type of account. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements. For the
period, the transfer agent fees were equivalent to an annualized rate of
.23% of average net assets.
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 $6,300,000 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 $112,451,000 and
$115,337,000, respectively.
6. 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
$3,346,000 under this arrangement.
In addition, FMR has entered into arrangements on behalf of the fund with
the fund's custodian and transfer agent whereby interest earned on
uninvested cash balances was used to offset a portion of the fund's
expenses. During the period, the fund's expenses were reduced by $10,000
and $494,000 under these arrangements.
7. 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 during the period with
companies which are or were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
AMOUNTS IN THOUSANDS
PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
Adflex Solutions $ - $ 4,098 $ - $ -
American Radio Systems Corp. Class A 16,389 6,912 - 30,349
BDM International, Inc. 2,089 3,799 - -
Bell & Howell Co. 167 107 - 31,832
CACI International, Inc. Class A - 2,513 - -
C A E Industries Ltd. 243 1,272 139 -
Cambrex Corp. 1,203 5,442 27 -
Camco International, Inc. 772 8,285 119 71,243
Cato Corp. Class A 1,721 4,873 136 9,690
Central Garden & Pet Co. 810 741 - 8,384
Charming Shoppes, Inc. 16,489 - - 52,666
Computer Products, Inc. 1,644 4,540 - -
Cooper Cameron Corp. 21,460 - - 78,523
CyCare Systems, Inc. - 5,031 - -
Designer Holdings Ltd. 1,626 1,564 - 14,215
Diamond Shamrock R&M, Inc. 6,171 - 37 48,544
Dynatech Corp. 2,801 6,147 - 31,957
EZ Communications, Inc. Class A - 3,962 - -
Emmis Broadcasting Corp. Class A - 6,664 - -
ENSCO International, Inc. - - - 123,218
Falcon Drilling, Inc. 8,106 2,580 - -
FileNet Corp. 30,281 34,933 - 29,532
Gleason Corp. - 1,134 34 -
Glendale Federal Bank Federal
Savings Bank 1,508 5,132 - -
Goody's Family Clothing - 346 - 15,737
K-III Communications Corp. 1,423 - - 12,273
Kronos, Inc. 3,901 1,407 - 27,033
Landry's Seafood Restaurants, Inc. 583 - - 28,307
Loehmanns, Inc. - 690 - 7,533
Malaysian Plantations BHD 158 - - 19,075
Metro Pacific, Inc. Class B 448 2,689 - -
Nabors Industries, Inc. 16,530 2,731 - 90,586
Newfield Exploration Co. 5,692 66 - 39,971
Progress Software Corp. - 7,088 - -
Richfood Holdings, Inc. Class A 17,825 956 54 75,585
Rohr Industries, Inc. - 620 - -
Rykoff-Sexton, Inc. - 6,736 - -
Sepracor, Inc. 1,649 7,895 - 19,791
Sevenson Environmental Services, Inc. - 657 47 6,971
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS
PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
Showboat, Inc. $ 12,116 $ 17,974 $ 52 $ -
Sinclair Broadcasting Group, Inc.
Class A - 1,439 - -
Smedvig AS 13,585 10,306 558 40,461
Smith International, Inc. 7,073 2,883 - 120,292
Sonat Offshore Drilling, Inc. 17,417 18,367 96 74,902
Special Devices, Inc. - 1,984 - -
Tech-Sym Corp. 1,101 5,946 - -
Tel-Save Holdings, Inc. - 1,518 - -
Tidewater, Inc. 20,118 6,154 760 152,050
Tongkah Holdings BHD - - - 15,985
Truevision, Inc. - 1,251 - -
Uniroyal Chemical Corp. 742 - - 19,053
Vanstar Corp. 2,735 311 - 15,353
Zycon Corp. - 2,594 - -
TOTALS $ 236,576 $ 212,337 $ 2,059 $ 1,311,111
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
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* 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.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East 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
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
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
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
56 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
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, 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
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Will Danoff, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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 *
ADVISORY BOARD
William O. McCoy
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'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty
Growth Company Fund
Large Cap Stock Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) 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)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
