FIDELITY
(registered trademark)
CONTRAFUND
SEMIANNUAL REPORT
JUNE 30, 1997
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 37 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 41 Notes to the financial statements.
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.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will begin eliminating duplicate
copies of most financial reports and prospectuses to most households, even
if they have more than one account in the fund. If additional copies of
financial reports, prospectuses or historical account information are
needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Through the first six months of 1997, stock and bond markets experienced
the kind of short-term volatility that can affect them periodically. The
stock market rebounded strongly from its early spring correction to
continue on its record-setting pace, as seen by the roughly 20%
year-to-date gain by the Standard & Poor's 500 Index. The bond market
posted moderate returns over the first half of the year, as positive news
on the inflation front helped soften the effects of a hike in short-term
interest rates by the Federal Reserve Board in late March.
While it's impossible to predict the future direction of the markets with
any degree of certainty, there are certain basic principles that can help
investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will greatly
reduce your vulnerability to any single decline. We know from experience,
for example, that stock prices have gone up over longer periods of time,
have significantly outperformed other types of investments and have stayed
ahead of inflation.
Second, you can further manage your investing risk through diversification.
A stock mutual fund, for instance, is already diversified, because it
invests in many different companies. You can increase your diversification
further by investing in a number of different stock funds, or in such other
investment categories 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, it's important to
remember that there is no assurance that a money market fund will achieve
its goal of maintaining a stable net asset value of $1.00 per share, and
that these types of funds are neither insured nor guaranteed by any agency
of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it makes
good sense to follow a regular investment plan, investing a certain amount
of money in a fund at the same time each month or quarter and periodically
reviewing your overall portfolio. By doing so, you won't get caught up in
the excitement of a rapidly rising market, nor will you buy all your shares
at market highs. While this strategy - known as dollar cost averaging -
won't assure a profit or protect you from a loss in a declining market, it
should help you lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are available
24 hours a day, seven days a week to provide you 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. Total return
reflects the change in the value of an investment, assuming reinvestment of
the fund's dividend income and capital gains (the profits earned upon the
sale of securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1997 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Fidelity Contrafund 11.22% 24.31% 149.72% 443.88%
Fidelity Contrafund (incl. 3% sales 7.88% 20.58% 142.22% 427.57%
charge)
S&P 500(registered trademark) 20.61% 34.70% 146.59% 292.69%
Growth Funds Average 14.28% 23.96% 121.62% 243.77%
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 had 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 stocks.
To measure how the fund's performance stacked up against its peers, you can
compare it to the average growth fund, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Analytical Services,
Inc. The past six months average represents a peer group of 840 mutual
funds. These benchmarks reflect reinvestment of dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Contrafund 24.31% 20.09% 18.45%
Fidelity Contrafund (incl. 3% sales charge) 20.58% 19.36% 18.09%
S&P 500 34.70% 19.78% 14.64%
Growth Funds Average 23.96% 16.90% 12.73%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and show you
what would have happened if the fund had performed at a constant rate each
year. (Note: Lipper calculates average annual total returns by annualizing
each fund's total return, then taking an arithmetic average. This may
produce a slightly different figure than that obtained by averaging the
cumulative total returns and annualizing the result.)
$10,000 OVER 10 YEARS
1987/06/30 9700.00 10000.00
1987/07/31 10173.34 10507.00
1987/08/31 10543.78 10898.91
1987/09/30 10331.12 10660.22
1987/10/31 7347.03 8364.01
1987/11/30 6942.29 7674.82
1987/12/31 7353.89 8258.87
1988/01/31 7827.23 8606.57
1988/02/29 8183.95 9007.64
1988/03/31 8197.67 8729.30
1988/04/30 8362.31 8826.20
1988/05/31 8245.69 8902.98
1988/06/30 8643.56 9311.63
1988/07/31 8705.30 9276.25
1988/08/31 8513.22 8960.85
1988/09/30 8863.08 9342.59
1988/10/31 9096.32 9602.31
1988/11/30 9027.72 9465.00
1988/12/31 8899.84 9630.63
1989/01/31 9490.82 10335.60
1989/02/28 9434.53 10078.24
1989/03/31 9934.05 10313.06
1989/04/30 10574.28 10848.31
1989/05/31 11123.04 11287.67
1989/06/30 11052.69 11223.33
1989/07/31 12065.79 12236.79
1989/08/31 12410.53 12476.64
1989/09/30 12649.73 12425.48
1989/10/31 12269.82 12137.21
1989/11/30 12551.24 12384.81
1989/12/31 12740.29 12682.05
1990/01/31 12064.55 11831.08
1990/02/28 12315.10 11983.70
1990/03/31 12580.84 12301.27
1990/04/30 12451.77 11993.74
1990/05/31 13628.61 13163.13
1990/06/30 13803.24 13073.62
1990/07/31 13545.10 13031.78
1990/08/31 12489.73 11853.71
1990/09/30 11965.85 11276.43
1990/10/31 12026.59 11227.94
1990/11/30 12740.29 11953.27
1990/12/31 13241.75 12286.77
1991/01/31 14531.58 12822.47
1991/02/28 15630.61 13739.28
1991/03/31 16546.46 14071.77
1991/04/30 16638.05 14105.54
1991/05/31 17698.92 14714.90
1991/06/30 16706.74 14040.96
1991/07/31 17889.72 14695.26
1991/08/31 18790.31 15043.54
1991/09/30 18843.74 14792.31
1991/10/31 19385.62 14990.53
1991/11/30 18362.91 14386.41
1991/12/31 20513.92 16032.22
1992/01/31 21098.89 15734.02
1992/02/29 21783.57 15938.56
1992/03/31 21192.39 15627.76
1992/04/30 21422.29 16087.22
1992/05/31 21652.20 16166.04
1992/06/30 21126.70 15925.17
1992/07/31 21660.41 16576.51
1992/08/31 21258.08 16236.69
1992/09/30 21619.36 16428.28
1992/10/31 22103.80 16485.78
1992/11/30 23171.22 17047.95
1992/12/31 23774.39 17257.64
1993/01/31 24527.34 17402.60
1993/02/28 24689.15 17639.28
1993/03/31 25868.99 18011.46
1993/04/30 26043.78 17575.59
1993/05/31 27075.04 18046.61
1993/06/30 27083.78 18098.95
1993/07/31 27380.93 18026.55
1993/08/31 28709.33 18709.76
1993/09/30 28770.51 18565.69
1993/10/31 29023.96 18950.00
1993/11/30 27931.52 18769.98
1993/12/31 28868.33 18997.10
1994/01/31 29776.32 19643.00
1994/02/28 29562.68 19110.67
1994/03/31 28393.75 18277.45
1994/04/30 28742.54 18511.40
1994/05/31 28582.28 18814.98
1994/06/30 27479.34 18354.02
1994/07/31 28035.53 18956.03
1994/08/31 29204.46 19733.23
1994/09/30 28817.96 19249.76
1994/10/31 29638.09 19682.88
1994/11/30 28290.05 18966.03
1994/12/31 28544.58 19247.30
1995/01/31 28082.66 19746.38
1995/02/28 29213.89 20515.90
1995/03/31 30279.12 21121.32
1995/04/30 31646.02 21743.34
1995/05/31 32409.60 22612.42
1995/06/30 34464.65 23137.71
1995/07/31 37104.18 23904.96
1995/08/31 37594.38 23964.96
1995/09/30 38282.54 24976.28
1995/10/31 37584.95 24887.12
1995/11/30 38574.77 25979.66
1995/12/31 38900.57 26480.03
1996/01/31 39780.49 27381.41
1996/02/29 40023.01 27635.23
1996/03/31 41133.86 27901.36
1996/04/30 42406.49 28312.63
1996/05/31 42762.39 29042.81
1996/06/30 42438.85 29153.46
1996/07/31 40454.41 27865.46
1996/08/31 41996.66 28453.15
1996/09/30 43722.26 30054.49
1996/10/31 45124.30 30883.39
1996/11/30 47745.05 33217.87
1996/12/31 47434.16 32559.82
1997/01/31 49279.76 34594.16
1997/02/28 47985.57 34865.38
1997/03/31 46738.45 33432.76
1997/04/30 47791.07 35428.69
1997/05/31 50662.88 37585.59
1997/06/30 52756.67 39269.43
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Contrafund on June 30, 1987, and the current maximum 3% sales
charge was paid. As the chart shows, by June 30, 1997, the value of the
investment would have grown to $52,757 - a 427.57% increase on the 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 $39,269 - a 292.69% 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
long-term growth and
short-term volatility. 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. Results were disappointing. For the six months that ended June 30, 1997,
the fund returned 11.22%. This was worse than the 14.28% return for the
growth funds average, as tracked by Lipper Analytical Services, and the
20.61% return of the Standard & Poor's 500 Index over the same period. From
a 12-month perspective, the fund returned 24.31% as of June 30, 1997, while
the peer group and index returned 23.96% and 34.70%, respectively. As a
fellow shareholder of the fund, I consider this performance to be
unsatisfactory and I'm working as hard as ever with Fidelity's research
staff to find stocks that can help boost second-half performance.
Q. WHAT FACTORS WERE BEHIND THE FUND'S UNDERPERFORMANCE RELATIVE TO THE S&P
500?
A. A primary reason was the narrowness of the market. By that I mean that
the market's advance was concentrated chiefly among stocks of the largest
companies in the index. To illustrate, shares of the 100 largest S&P 500
stocks appreciated approximately 25% over the past six months, while the
100 smallest stocks in the index rose only around 15%. This phenomenon hurt
the fund, which tends to emphasize small- and mid-sized companies.
Q. WHAT TRIGGERED THE STRONG RUN BY LARGE-CAPS?
A. Many of the big stocks continued to appreciate sharply due to increases
in their price-to-earnings (P/E) ratios - a measure of how much an investor
pays for each dollar of a company's earnings. This occurred as inflation
remained low and the country's budget deficit fell, both factors that
produced lower interest rate levels. Additionally, favorable economic
conditions and an emphasis on increasing efficiency generated strong
corporate earnings growth. The high P/E's we've seen reflect the market's
great expectations on two fronts: that inflation - and interest rates -
will remain low and that earnings growth will stay strong. This is a hard
balance to maintain, but the economy has succeeded thus far.
Q. WERE THERE ANY OTHER SPECIFIC FACTORS THAT HAD A NEGATIVE EFFECT ON THE
FUND'S RETURN?
A. The fund's underweighting in health care stocks relative to the index -
health care stocks make up around 11% of the index, while they comprised
just 4% of the fund - hurt performance. With governments throughout the
world attempting to limit health care expenditure growth and U.S. health
maintenance organizations (HMOs) trying to contain industry costs, I
thought the industry would suffer a slowdown. Unfortunately, many health
care stocks - particularly pharmaceuticals - continued to perform well,
rising about 23% during the period. Thus, my strategy of underweighting
these stocks hurt the fund's return.
Q. ASIDE FROM HEALTH STOCKS, HOW DID OTHER SECTORS PERFORM DURING THE
PERIOD?
A. The finance sector, which accounted for around 14% of the fund's assets
at the end of the period, rose approximately 23%. This strong showing was
due largely to falling interest rates, excellent expense control and
continuing industry consolidation. Some financial stocks held by the fund
included American International Group, a leading insurer with operations in
Asia; Washington Mutual, a rapidly growing West Coast thrift, and First
Bank Systems, a Minneapolis bank with the lowest expense ratio in the
industry and a recent acquiror of another stock in Contrafund's portfolio,
U.S. Bancorp. On the other hand, the fund's energy exploration and
production positions were hurt by falling oil and natural gas prices. These
declining commodity prices caused the earnings estimates and P/E's of many
energy-related stocks to tumble, and as of period end, the fund's exposure
to these stocks had fallen from around 23% six months ago to approximately
13%. I retained my investments in the energy service and drilling
subsectors, where earnings were promising. Low capital investment in the
energy sector has resulted in a tight supply of oil service equipment. Some
stocks that benefited from this positive trend included Schlumberger,
Halliburton, ENSCO International and Smith International, all top 25
positions within the portfolio.
Q. DID YOU PLAY ANY PARTICULAR THEMES DURING THE PERIOD?
A. One area that holds promise is the cable television industry. These
stocks have performed poorly over the last four years as subscriber growth
slowed and government regulation restricted the industry's ability to raise
prices. As a result, the market still holds an overly pessimistic view of
this group. But the increased popularity of the Internet may provide a huge
opportunity for these companies to reaccelerate their growth. Many cable TV
companies are offering access to the "information superhighway" at
dramatically faster speeds than is currently available over telephone
wires. As more and more individuals and companies rely on the Internet for
low-cost communication, offering faster transmission speeds could benefit
the cable TV industry and help turn its fortunes around. Two other groups
that should benefit from the Internet's popularity are the technology and
telecommunications sectors. Two of the fund's top positions - Lucent
Technologies and Alcatel - are leading providers of the equipment being
used to improve the Internet's operating efficiency.
Q. WHAT'S YOUR OUTLOOK?
A. As I mentioned, the biggest stocks in the S&P 500 are quite expensive, a
trend that could continue for several years. If it does, I'll continue my
contrarian approach of looking for undervalued, out-of-favor companies that
are growing their earnings rapidly and therefore have the capability to
produce good share price appreciation.
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
FUND NUMBER: 022
TRADING SYMBOL: FCNTX
START DATE: May 17, 1967
SIZE: as of June 30, 1997,
more than $27.5 billion
MANAGER: Will Danoff, since
1990; manager, VIPII:
Contrafund since 1995;
Fidelity Select Retailing
Portfolio, 1986-1989; joined
Fidelity in 1986
(checkmark)
WILL DANOFF ON "CONTRARIAN"
INVESTING:
"In keeping with Contrafund's
strategy, I try to find
undervalued but potentially
promising companies before
the market catches on. In
many cases, I may feel
market perception concerning
a stock I like is too
pessimistic. But contrarian
investing does not
necessarily translate to
buying only low P/E
companies. In the last six
months, for example, the fund
increased its holdings in very
rapidly growing companies
trading at high P/E multiples.
Despite a sound fundamental
backdrop, this group of stocks
has been under intense
selling pressure over the
past six months. This
pressure came mostly from
redemptions from aggressive
growth funds that were
forced to sell positions due to
falling share prices. In some
cases shares of these
fast-growing companies fell
by more than 50% from their
previous highs. In my view,
because the fundamentals
were still stable to improving,
this created a golden
opportunity to add to or
establish positions in this
area. Stocks such as Blyth
Industries, McLeodUSA and
Thermo Instruments were
representative of this
strategy."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JUNE 30, 1997
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Schlumberger Ltd. 1.6 2.2
Lucent Technologies, Inc. 1.1 0.3
Home Depot, Inc. (The) 1.1 0.6
American International Group, Inc. 1.0 0.0
Royal Dutch Petroleum Co. ADR 1.0 1.2
Alcatel Alsthom Compagnie Generale 1.0 0.1
d'Electricite SA
Texas Instruments, Inc. 1.0 0.2
Tyco International Ltd. 1.0 0.6
Westinghouse Electric Corp. 1.0 0.5
CVS Corp. 1.0 0.6
TOP FIVE MARKET SECTORS AS OF JUNE 30, 1997
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET
SECTORS
6 MONTHS AGO
Technology 14.1 13.9
Finance 13.7 10.7
Energy 12.7 23.5
Retail & Wholesale 7.7 6.4
Industrial Machinery & Equipment 6.3 4.1
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF JUNE 30, 1997 * AS OF DECEMBER 31, 1996 **
Row: 1, Col: 1, Value: 6.4
Row: 1, Col: 2, Value: 2.3
Row: 1, Col: 3, Value: 41.3
Row: 1, Col: 4, Value: 50.0
Stocks 88.3%
Bonds 5.0%
Short-term
investments 6.7%
FOREIGN
INVESTMENTS 11.4%
Stocks 92.3%
Bonds 1.3%
Short-term
investments 6.4%
FOREIGN
INVESTMENTS 16.4%
Row: 1, Col: 1, Value: 6.7
Row: 1, Col: 2, Value: 5.0
Row: 1, Col: 3, Value: 44.0
Row: 1, Col: 4, Value: 44.3
*
**
INVESTMENTS JUNE 30, 1997 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 91.4%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 2.0%
AEROSPACE & DEFENSE - 1.9%
AlliedSignal, Inc. 1,016,400 $ 85,378
Boeing Co. 1,494,920 79,324
GenCorp, Inc. 944,100 21,832
Gulfstream Aerospace Corp. (a) 922,700 27,220
Lockheed Martin Corp. 938,200 97,162
Sundstrand Corp. 779,800 43,523
Textron, Inc. 865,100 57,421
United Technologies Corp. 1,576,200 130,825
542,685
DEFENSE ELECTRONICS - 0.0%
Datum, Inc. (a) 70,300 2,179
Raytheon Co. 109,700 5,595
7,774
SHIP BUILDING & REPAIR - 0.1%
General Dynamics Corp. 222,900 16,718
TOTAL AEROSPACE & DEFENSE 567,177
BASIC INDUSTRIES - 4.8%
CHEMICALS & PLASTICS - 2.3%
Air Products & Chemicals, Inc. 254,700 20,694
Avery Dennison Corp. 56,900 2,283
Cambrex Corp. (d) 799,150 31,766
Crompton & Knowles Corp. 3,122,317 69,472
Cytec Industries, Inc. (a) 1,452,500 54,287
du Pont (E.I.) de Nemours & Co. 594,600 37,385
Engelhard Corp. 9,200 193
FMC Corp. (a) 16,000 1,271
Ferro Corp. 211,700 7,846
Fuller (H.B.) Co. 474,100 26,076
Goodrich (B.F.) Co. 415,800 18,009
Monsanto Co. 2,970,800 127,930
Morton International, Inc. 823,400 24,856
Nalco Chemical Co. 421,100 16,265
Praxair, Inc. 1,165,000 65,240
Raychem Corp. 206,400 15,351
Sealed Air Corp. (a) 1,474,700 70,048
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
CHEMICALS & PLASTICS - CONTINUED
Union Carbide Corp. 375,800 $ 17,686
Witco Corp. 465,800 17,671
W.R. Grace & Co. 553,400 30,506
654,835
IRON & STEEL - 0.2%
Aeroquip Vickers, Inc. 84,300 3,983
Nucor Corp. 448,500 25,340
Steel Dynamics, Inc. (a) 370,100 9,253
38,576
METALS & MINING - 0.7%
Alcan Aluminium Ltd. 388,100 13,240
Aluminum Co. of America 908,900 68,508
Falconbridge Ltd. 693,600 13,614
Reynolds Metals Co. 548,800 39,102
Rio Tinto PLC (Reg.) 2,715,900 47,314
Tongkah Holdings BHD (a)(d) 9,587,000 18,304
200,082
PACKAGING & CONTAINERS - 0.5%
Crown Cork & Seal Co., Inc. 429,900 22,973
Owens-Illinois, Inc. (a) 3,486,600 108,085
Peak International Ltd. 335,700 4,028
Silgan Holdings, Inc. (d) 325,600 12,617
147,703
PAPER & FOREST PRODUCTS - 1.1%
Abitibi-Consolidated, Inc. 256,700 4,583
American Pad & Paper Co. (a) 865,900 14,612
Bowater, Inc. 210,100 9,717
Champion International Corp. 350,700 19,376
Deltic Timber Corp. 146,028 4,280
Fort Howard Corp. (a) 107,600 5,447
Georgia-Pacific Corp. 107,500 9,178
International Paper Co. 258,000 12,529
James River Corp. of Virginia 2,379,800 88,053
Kimberly-Clark Corp. 1,699,300 84,540
Mail-Well, Inc. 9,000 257
Malakoff BHD 8,544,000 37,229
Temple-Inland, Inc. 290,600 15,692
305,493
TOTAL BASIC INDUSTRIES 1,346,689
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - 3.6%
BUILDING MATERIALS - 1.0%
American Residential Services, Inc. (a) 365,600 $ 8,500
American Standard Companies, Inc. (a) 83,100 3,719
Coltec Industries, Inc. 1,305,500 25,457
Hume Industries BHD 6,798,000 31,237
Lilly Industrial Coatings, Inc. Class A 609,500 12,266
Masco Corp. 1,475,800 61,615
Medusa Corp. 176,600 6,777
Sherwin-Williams Co. 1,231,400 38,019
Southdown, Inc. 648,000 28,269
USG Corp. (a) 1,362,900 49,746
York International Corp. 17,900 822
266,427
CONSTRUCTION - 0.2%
Centex Corp. 333,300 13,540
Lennar Corp. 292,000 9,326
Morrison Knudsen Corp. (a) 498,500 6,792
Walter Industries, Inc. (a) 31,400 526
YTL Corp. BHD 7,076,250 21,863
52,047
ENGINEERING - 0.0%
DSP Group, Inc. (a) 121,100 1,814
Stone & Webster, Inc. 11,100 474
2,288
REAL ESTATE - 0.3%
Bandar Raya Development BHD 4,483,000 5,860
Boston Properties, Inc. 580,200 15,956
Catellus Development Corp. (a) 177,000 3,208
Crescent Operating, Inc. 243,470 2,922
Grand Palais Management Co., LP (a)(f) 398,400 0
Rouse Co. (The) 1,746,976 51,536
Stewart Enterprises, Inc. Class A 17,900 752
80,234
REAL ESTATE INVESTMENT TRUSTS - 2.1%
Arden Realty Group, Inc. 733,100 19,061
BRE Properties, Inc. Class A 31,400 789
Bay Apartment Communities, Inc. 354,100 13,102
Bedford Property Investors, Inc. (d) 691,300 13,912
Bradley Real Estate Trust (SBI) 312,000 6,006
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
REAL ESTATE INVESTMENT TRUSTS - CONTINUED
Cali Realty Corp. 439,200 $ 14,933
Crescent Real Estate Equities, Inc. 2,434,700 77,302
Duke Realty Investors, Inc. 223,843 9,066
Equity Residential Properties Trust (SBI) 1,057,500 50,231
Essex Property Trust, Inc. 124,700 4,006
Felcor Suite Hotels, Inc. 1,149,800 42,830
First Industrial Realty Trust, Inc. 735,300 21,508
Glenborough Realty Trust, Inc. 447,200 11,292
Golf Trust of America, Inc. (d) 383,100 10,655
Home Properties of NY, Inc. 82,300 1,852
Irvine Apartment Communities, Inc. 31,400 926
Kilroy Realty Corp. 103,900 2,623
Kimco Realty Corp. 617,000 19,590
LTC Properties, Inc. 473,600 8,584
Macerich Co. 538,000 14,930
Pacific Gulf Properties, Inc. 22,400 493
Patriot American Hospitality, Inc. 1,302,500 33,214
Patriot American Hospitality, Inc. (Pair Certf) 675,932 30,417
Public Storage, Inc. 351,500 10,281
Reckson Associates Realty Corp. 1,096,000 25,208
Speiker Properties, Inc. 679,400 23,906
Starwood Lodging Trust combined certificate (SBI) (d) 2,396,100 102,284
Sunstone Hotel Investors, Inc. 305,300 4,427
Urban Shopping Centers, Inc. 47,100 1,501
Vornado Realty Trust 289,600 20,887
Weeks Corp. 274,800 8,588
604,404
TOTAL CONSTRUCTION & REAL ESTATE 1,005,400
DURABLES - 4.7%
AUTOS, TIRES, & ACCESSORIES - 2.1%
Chrysler Corp. 2,122,800 69,654
Circuit City Stores, Inc. - CarMax Group 919,600 13,162
Cross-Continent Auto Retailers, Inc. (a) 425,900 4,499
Danaher Corp. 1,989,900 101,112
Eaton Corp. 248,500 21,697
Echlin, Inc. 430,800 15,509
Federal-Mogul Corp. 357,600 12,516
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES - CONTINUED
Ford Motor Co. 2,605,100 $ 98,342
General Motors Corp. 975,800 54,340
General Motors Corp. Class H 96,400 5,567
Lear Corp. (a) 1,172,500 52,030
Navistar International Corp. (a) 1,771,700 30,562
OmniQuip International, Inc. 216,900 5,016
SPX Corp. (d) 964,200 62,492
Superior Industries International, Inc. 14,800 392
TRW, Inc. 88,500 5,028
Tower Automotive, Inc. (a) 385,000 16,555
Toyota Motor Corp. 584,000 17,218
United Auto Group, Inc. (a) 440,900 8,735
594,426
CONSUMER DURABLES - 1.2%
Blyth Industries, Inc. (a) 126,600 4,272
Corning, Inc. 2,188,400 121,730
Minnesota Mining & Manufacturing Co. 1,756,300 179,143
Samsonite Corp. (a) 474,400 20,933
326,078
CONSUMER ELECTRONICS - 0.6%
Electrolux AB 61,300 4,430
Gemstar International Group Ltd. (a) 407,000 7,479
Maytag Co. 421,600 11,015
Oyl Industries BHD 2,962,000 18,773
Philips Electronics NV 1,445,000 103,859
Philips Electronics NV (Bearer) 319,400 22,864
Sunbeam-Oster, Inc. 107,500 4,058
172,478
HOME FURNISHINGS - 0.2%
Furniture Brands International, Inc. 107,500 2,083
Leggett & Platt, Inc. 541,200 23,271
Linens 'n Things, Inc. 776,900 23,016
Miller (Herman), Inc. 60,600 2,182
50,552
TEXTILES & APPAREL - 0.6%
Dexter Corp. 444,400 14,221
House of Fraser PLC Class L 5,925,900 15,734
Intimate Brands, Inc. Class A 363,900 7,642
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
TEXTILES & APPAREL - CONTINUED
Kellwood Co. 55,600 $ 1,543
Liz Claiborne, Inc. 912,000 42,522
Mohawk Industries, Inc. (a) 17,800 405
Polo Ralph Lauren Corp. Class A 78,900 2,160
Reebok International Ltd. 1,346,800 62,963
Stride Rite Corp. 438,500 5,646
Unifi, Inc. 196,600 7,347
Warnaco Group, Inc. Class A 394,400 12,571
172,754
TOTAL DURABLES 1,316,288
ENERGY - 12.7%
ENERGY SERVICES - 6.2%
BJ Services Co. (a) 1,562,047 83,765
Baker Hughes, Inc. 1,133,300 43,844
Diamond Offshore Drilling, Inc. (a) 1,833,948 142,819
Dresser Industries, Inc. 1,816,900 67,679
ENSCO International, Inc. (a)(d) 4,207,200 221,930
Falcon Drilling, Inc. 667,300 38,453
Global Marine, Inc. (a) 1,910,400 44,417
Halliburton Co. 2,630,800 208,491
McDermott International, Inc. 1,700,900 49,645
Nabors Industries, Inc. (a) 2,950,000 73,750
Noble Drilling Corp. (a) 2,330,500 52,582
Reading & Bates Corp. (a) 258,000 6,902
Santa Fe International Corp. 62,300 2,118
Schlumberger Ltd. 3,538,300 442,288
Smith International, Inc. (a)(d) 3,181,100 193,252
Varco International, Inc. (a) 635,800 20,504
Weatherford Enterra, Inc. (a) 705,000 27,142
Western Atlas, Inc. (a) 76,200 5,582
1,725,163
OIL & GAS - 6.5%
Amoco Corp. 1,046,400 90,972
Anadarko Petroleum Corp. 53,800 3,228
Atlantic Richfield Co. 108,300 7,635
Barrett Resources Corp. (a) 6,100 183
British Petroleum PLC ADR 2,639,970 197,668
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Burlington Resources, Inc. 1,925,900 $ 84,980
Camco International, Inc. 1,361,400 74,537
Canadian Natural Resources Ltd. (a) 1,633,200 42,408
Chesapeake Energy Corp. (a) 99,200 973
Coastal Corp. (The) 968,300 51,501
Cooper Cameron Corp. (a) 1,471,600 68,797
Enron Oil & Gas Co. 83,800 1,519
Forcenergy Gas Exploration, Inc. (a) 991,700 30,123
Hanover Compressor Co. 20,100 392
Mesa, Inc. (a) 1,402,800 8,066
Mobil Corp. 1,201,100 83,927
Murphy Oil Corp. 1,341,200 65,383
Newfield Exploration Co. (a)(d) 1,886,300 37,726
Norcen Energy Resources Ltd. 157,200 3,746
Ocean Energy, Inc. (a) 67,500 3,122
Oryx Energy Co. (a) 405,800 8,573
Parker & Parsley Petroleum Co. 465,200 16,456
Penn West Petroleum Ltd. (a) 167,800 2,145
Penn West Petroleum Ltd. (a)(e) 771,900 9,868
Petsec Energy Ltd. sponsored ADR 642,900 14,626
Phillips Petroleum Co. 812,100 35,529
Pogo Producing Co. 1,165,000 45,071
Renaissance Energy Ltd. (a) 2,327,988 64,748
Rio Alto Exploration Ltd. (a) 281,600 2,356
Royal Dutch Petroleum Co. ADR 5,239,600 284,903
Santa Fe Energy Resources, Inc. 2,233,000 32,797
Swift Energy Co. (a) 230,600 5,506
Texaco, Inc. 897,600 97,614
Tosco Corp. 3,387,600 101,416
Total SA Class B 1,087,772 109,883
United Meridian Corp. (a) 1,119,200 33,576
Unocal Corp. 2,528,376 98,133
Vastar Resources, Inc. 34,800 1,220
Vintage Petroleum, Inc. 72,700 2,236
YPF Sociedad Anonima sponsored ADR 22,400 689
YPF Sociedad Anonima Class D 35,800 1,103
1,825,334
TOTAL ENERGY 3,550,497
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - 13.7%
BANKS - 3.9%
Bangkok Bank Ltd. (For. Reg.) 427,400 $ 2,937
Bank International Indonesia PT (For. Reg.) 10,506,524 9,072
Bank of New York Co., Inc. 2,009,400 87,409
Bank of Nova Scotia Halifax 22,400 982
BankBoston Corp. 79,500 5,729
BankAmerica Corp. 3,003,700 193,926
Citicorp 211,600 25,511
Comerica, Inc. 619,800 42,146
Credit Suisse Group (Reg.) 764,600 98,093
Credito Italiano Ord. 13,948,300 25,514
Fifth Third Bancorp 204,100 16,749
First Bank System, Inc. 1,967,000 167,933
First Union Corp. 255,600 23,643
HSBC Holdings PLC 2,145,018 63,560
Hong Leong Bank:
BHD 2,289,000 5,758
BHD rights 7/15/97 (a) 258,125 41
Class A 586,200 2,755
Imperial Bancorp 53,800 1,553
Lloyds TSB Group PLC 1,751,800 17,964
Mellon Bank Corp. 246,500 11,123
National City Corp. 873,090 45,837
North Fork Bancorp., Inc. 1,641,100 35,079
Norwest Corp. 378,800 21,308
Royal Bank of Canada 53,800 2,437
Standard Chartered Bank PLC 2,436,000 37,146
Star Banc Corp. 16,800 710
U.S. Bancorp 1,478,300 94,796
Wells Fargo & Co. 100,400 27,058
Zions Bancorp 812,700 30,578
1,097,347
CLOSED END INVESTMENT COMPANY - 0.2%
GT Global Developing Markets Fund 642,000 9,028
Morgan Stanley Emerging Markets Fund, Inc. 341,900 6,111
Morgan Stanley Asia-Pacific Fund, Inc. 1,608,500 16,889
Schroder Asian Growth Fund, Inc. 435,500 5,580
Templeton Dragon Fund, Inc. 742,500 12,066
49,674
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - 2.1%
Arab Malaysian Corp. BHD 7,961,000 $ 29,643
American Express Co. 2,322,700 173,041
Associates First Capital Corp. 201,800 11,200
Finova Group, Inc. 288,800 22,093
Fleet Financial Group, Inc. 2,115,800 133,824
Greenpoint Financial Corp. 1,394,700 92,835
Homeside, Inc. 17,900 392
Household International, Inc. 766,488 90,014
Hong Leong Credit:
BHD 2,931,000 10,914
BHD rights 7/24/97 (a) 293,100 290
BHD warrants/rights 7/24/97 (a) 586,200 0
Hong Leong Finance Ltd. (For. Reg.) 421,000 1,196
TA Enterprise BHD 7,017,000 7,477
572,919
FEDERAL SPONSORED CREDIT - 1.3%
Federal Home Loan Mortgage Corporation 4,270,900 146,812
Federal National Mortgage Association 5,103,300 222,632
369,444
INSURANCE - 4.5%
ACE Ltd. 277,600 20,508
Aetna, Inc. 604,100 61,845
AFLAC, Inc. 346,500 16,372
Allmerica Financial Corp. 732,600 29,212
Allstate Corp. 2,599,900 189,793
AMBAC, Inc. 106,600 8,142
American General Corp. 246,600 11,775
American International Group, Inc. 1,937,300 289,384
Aon Corp. 540,150 27,953
ARM Financial Group, Inc. Class A 20,300 406
Berkshire Hathaway, Inc. (a) 330 15,576
Brascan Ltd. Class A 107,900 2,669
CIGNA Corp. 342,500 60,794
Chubb Corp. (The) 76,100 5,089
Exel Ltd. 53,800 2,838
Hartford Financial Services Group, Inc. 685,400 56,717
MGIC Investment Corp. 277,200 13,288
Mid Ocean Ltd. 41,800 2,192
Old Republic International Corp. 82,500 2,501
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Progressive Corp. 450,100 $ 39,159
Provident Companies, Inc. 170,200 9,106
Providian Financial Corp. (a) 72,300 2,322
Reinsurance Group of America, Inc. 36,100 2,076
Reliastar Financial Corp. 215,200 15,737
St. Paul Companies, Inc. (The) 210,400 16,043
Security-Connecticut Corp. (d) 620,000 34,139
SunAmerica, Inc. 681,300 33,213
Torchmark Corp. 571,100 40,690
Travelers Group, Inc. (The) 2,679,233 168,958
UNUM Corp. 1,093,800 45,940
USF&G Corp. 1,337,500 32,100
1,256,537
SAVINGS & LOANS - 1.6%
Ahmanson (H.F.) & Co. 792,000 34,056
Charter One Financial Corp. 231,515 12,473
Dime Bancorp., Inc. 1,032,900 18,076
Glendale Federal Bank FSB (a) 2,351,400 61,430
Golden West Financial Corp. 669,300 46,851
Great Western Financial Corp. 1,596,700 85,823
TCF Financial Corp. 475,900 23,497
Washington Mutual, Inc. 2,872,200 171,614
453,820
SECURITIES INDUSTRY - 0.1%
Guoco Group Ltd. 3,970,000 20,908
Morgan Stanley Dean Witter Discover and Co. 164,600 7,088
27,996
TOTAL FINANCE 3,827,737
HEALTH - 4.2%
DRUGS & PHARMACEUTICALS - 1.8%
Barr Laboratories, Inc. (a) 198,250 8,723
Bristol-Myers Squibb Co. 1,037,300 84,021
Elan Corp. PLC ADR (a) 483,500 21,878
Glaxo PLC sponsored ADR 107,500 4,495
Immunex Corp. 9,000 326
Interneuron Pharmaceuticals, Inc. 31,400 632
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS - CONTINUED
Merck & Co., Inc. 98,600 $ 10,205
Novartis AG (Reg.) 133,660 213,454
Pfizer, Inc. 513,200 30,664
Schering-Plough Corp. 1,367,100 65,450
Sepracor, Inc. (a) 262,000 6,763
Warner-Lambert Co. 490,900 60,994
507,605
MEDICAL EQUIPMENT & SUPPLIES - 0.5%
Bausch & Lomb, Inc. 490,700 23,124
Baxter International, Inc. 337,600 17,640
Boston Scientific Corp. (a) 20,100 1,235
Cardinal Health, Inc. 198,950 11,390
McKesson Corp. 111,500 8,641
Medtronic, Inc. 453,100 36,701
Nitinol Medical Technologies, Inc. 9,000 136
St. Jude Medical, Inc. (a) 757,500 29,543
Sybron International Corp. (a) 316,900 12,636
141,046
MEDICAL FACILITIES MANAGEMENT - 1.9%
Beverly Enterprises, Inc. (a) 705,600 11,466
Carematrix Corp. (a) 473,100 11,680
Columbia/HCA Healthcare Corp. 73,700 2,897
Coventry Corp. (a) 894,200 13,525
FPA Medical Management, Inc. 98,500 2,333
HEALTHSOUTH Rehabilitation Corp. (a) 5,495,400 137,042
Health Management Associates, Inc. Class A (a) 2,811,450 80,126
Humana, Inc. (a) 142,300 3,291
Integrated Health Services, Inc. (d) 1,684,100 64,838
NovaCare, Inc. (a) 446,500 6,195
Oxford Health Plans, Inc. (a) 523,000 37,525
Quorum Health Group, Inc. (a) 82,100 2,935
Sunrise Assisted Living, Inc. (a)(d) 1,049,000 36,715
Tenet Healthcare Corp. (a) 1,721,000 50,877
Trigon Healthcare, Inc. 1,272,800 30,865
United HealthCare Corp. 285,800 14,862
Vencor, Inc. (a) 279,100 11,792
518,964
TOTAL HEALTH 1,167,615
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HOLDING COMPANIES - 0.7%
Astra International PT (For. Reg.) 3,580,000 $ 14,721
Malaysian Plantations BHD 14,164,000 19,076
Norfolk Southern Corp. 1,413,600 142,420
PartnerRe Ltd. 141,200 5,383
Triarc Companies, Inc. Class A (a) 214,900 4,379
185,979
INDUSTRIAL MACHINERY & EQUIPMENT - 6.3%
ELECTRICAL EQUIPMENT - 2.0%
AMETEK, Inc. 589,600 13,856
Common Development International Ltd. (a)(e) 428,000 7,827
Computer Products, Inc. (a) 20,400 510
General Electric Co. 691,200 45,187
General Instrument Corp. (a) 753,900 18,848
Honeywell, Inc. 405,300 30,752
Kuhlman Corp. 84,700 2,732
Loral Space & Communications Ltd. (a) 7,606,300 114,095
Roper Industries, Inc. 76,900 3,989
Scientific-Atlanta, Inc. 1,256,800 27,493
Spectrain Corp. 26,900 992
United Engineers BHD 2,356,000 16,985
Viasat, Inc. 59,000 856
Westinghouse Electric Corp. 11,815,318 273,228
557,350
INDUSTRIAL MACHINERY & EQUIPMENT - 3.2%
AGCO Corp. 89,800 3,227
Case Corp. 1,788,200 123,162
Caterpillar, Inc. 760,600 81,669
Cooper Industries, Inc. 235,000 11,691
Dover Corp. 304,600 18,733
Harnischfeger Industries, Inc. 658,100 27,311
Illinois Tool Works, Inc. 1,848,200 92,294
Ingersoll-Rand Co. 1,060,000 65,455
Kaydon Corp. (d) 1,032,100 51,218
Keystone International, Inc. 865,000 30,005
New Holland NV (d) 2,840,100 77,748
Parker-Hannifin Corp. 139,000 8,436
Stanley Works 571,000 22,840
Thermo Fibergen, Inc. rights 12/31/01 (a) 158,300 425
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Timken Co. 858 $ 31
Tyco International Ltd. 4,026,800 280,115
894,360
POLLUTION CONTROL - 1.1%
Allied Waste Industries, Inc. (a) 157,900 2,744
Browning-Ferris Industries, Inc. 435,100 14,467
Thermo Instrument Systems, Inc. (a) 602,500 18,452
USA Waste Services, Inc. (a) 5,024,670 194,078
United Waste Systems, Inc. (a) 1,631,300 66,883
Waste Management, Inc. 24,000 770
297,394
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 1,749,104
MEDIA & LEISURE - 5.6%
BROADCASTING - 1.4%
APT Satellite Holdings Ltd. sponsored ADR 2,274,400 28,714
American Radio Systems Corp. Class A (a) 288,600 11,508
Asia Satellite Telecommunications Holdings Ltd. 2,232,500 6,844
Clear Channel Communications, Inc. (a) 364,500 22,440
Cox Communications, Inc. Class A (a) 487,800 11,707
Evergreen Media Corp. Class A (a) 49,600 2,213
HSN, Inc. (a) 72,800 2,275
Jacor Communications, Inc. Class A (a) 1,004,500 38,422
Smartalk Teleservices, Inc. (a) 490,600 7,604
TCA Cable TV, Inc. 80,700 3,036
TCI Group Class A (a) 2,346,600 34,906
Time Warner, Inc. 4,282,636 206,637
Univision Communications, Inc. Class A (a) 86,800 3,397
379,703
ENTERTAINMENT - 0.9%
Airtours PLC 261,800 5,064
Disney (Walt) Co. 2,123,400 170,403
Family Golf Centers, Inc. (a) 21,800 501
Multi-Purpose Holdings BHD 12,703,000 17,813
Premier Parks, Inc. (a) 820,900 30,271
Regal Cinemas, Inc. (a) 172,400 5,689
Viacom, Inc.:
Class A (a) 350,200 10,397
Class B (non-vtg.) (a) 434,500 13,035
253,173
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LEISURE DURABLES & TOYS - 0.9%
Brunswick Corp. 1,451,900 $ 45,373
Callaway Golf Co. 593,600 21,073
Champion Enterprises, Inc. (a) 270,200 4,053
Harley-Davidson, Inc. 310,100 14,865
Hasbro, Inc. 4,081,350 115,808
Mattel, Inc. 1,249,225 42,317
Nintendo Co. Ltd. Ord. 290,300 24,309
267,798
LODGING & GAMING - 0.9%
Bristol Hotel Co. (a) 63,700 2,453
Doubletree Corp. (a) 342,300 14,077
Four Seasons Hotels, Inc. 1,125,600 33,426
HFS, Inc. (a) 2,253,300 130,691
Hilton Hotels Corp. 30,800 818
Host Marriott Corp. (a) 901,400 16,056
ITT Corp. 53,700 3,279
La Quinta Motor Inns, Inc. 1,168,200 25,554
Marriott International, Inc. 26,400 1,620
WMS Industries, Inc. 919,800 23,053
251,027
PUBLISHING - 0.8%
Big Flower Press Holdings, Inc. (a)(d) 1,693,300 35,136
Dow Jones & Co., Inc. 284,200 11,421
Harte Hanks Communications, Inc. 65,900 1,944
Meredith Corp. 471,300 13,668
New York Times Co. (The) Class A 942,600 46,659
Pearson PLC 1,898,500 21,997
Times Mirror Co. Class A 1,435,600 79,317
Tribune Co. 540,200 25,963
236,105
RESTAURANTS - 0.7%
Boston Chicken, Inc. (a) 778,200 10,894
Chart House Enterprises, Inc. 44,800 338
Compass Group PLC Ord. 406,700 4,560
Cracker Barrel Old Country Store, Inc. 94,200 2,496
Fine Host Corp. (a) 279,200 8,795
Landry's Seafood Restaurants, Inc. (a) 845,200 19,440
Lone Star Steakhouse Saloon 22,400 582
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
RESTAURANTS - CONTINUED
McDonald's Corp. 2,012,900 $ 97,248
Papa John's International, Inc. (a) 126,300 4,642
Rainforest Cafe, Inc. (a) 99,000 2,512
ShowBiz Pizza Time, Inc. (a) 546,000 14,401
Starbucks Corp. (a) 153,400 5,973
Wendy's International, Inc. 489,300 12,691
184,572
TOTAL MEDIA & LEISURE 1,572,378
NONDURABLES - 4.0%
AGRICULTURE - 0.0%
Pioneer Hi-Bred International, Inc. 169,700 13,576
BEVERAGES - 0.7%
Cadbury-Schweppes PLC Ord. 9,670,404 86,287
Coors (Adolph) Co. Class B 256,600 6,832
COTT Corp. 53,800 573
PepsiCo, Inc. 3,024,700 113,615
207,307
FOODS - 1.5%
CPC International, Inc. 18,700 1,726
Campbell Soup Co. 1,031,400 51,570
Dean Foods Co. 906,300 36,592
Dole Food, Inc. 266,400 11,389
Earthgrains Co. 54,500 3,573
Flowers Industries, Inc. 267,700 4,501
Hershey Foods Corp. 734,200 40,610
Interstate Bakeries Corp. 68,000 4,033
Nabisco Holdings Corp. Class A 1,598,900 63,756
Nestle SA (Reg.) 59,265 78,101
Ralston Purina Co. 732,200 60,178
Sara Lee Corp. 639,700 26,628
Tasty Baking Co. 4,500 79
Tootsie Roll Industries, Inc. 205,424 9,141
Tyson Foods, Inc. 774,900 14,820
406,697
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - 1.4%
Church & Dwight Co., Inc. 218,600 $ 5,847
Dial Corp. 1,683,300 26,302
Estee Lauder Companies, Inc. 104,300 5,241
Gillette Co. 1,477,300 139,974
Metro Pacific, Inc. Class B 70,863,500 15,314
Premark International, Inc. 611,800 16,366
Stanhome, Inc. 47,200 1,552
Unilever NV:
Ord. 655,370 137,874
ADR 187,600 40,158
388,628
TOBACCO - 0.4%
Consolidated Cigar Holdings, Inc. Class A (a)(d) 870,000 24,143
Culbro Corp. (a) 19,300 2,686
Dimon, Inc. 62,800 1,664
Gallaher Group PLC sponsored ADR (a) 656,300 12,101
General Cigar Holdings, Inc. Class A 102,300 3,011
Grupo Carso SA de CV Class A-1 7,259,000 50,788
Gudang Garam PT Perusahaan (For. Reg.) 1,727,500 7,245
Swisher International Group, Inc. Class A (d) 565,300 9,751
Universal Corp. 72,600 2,305
113,694
TOTAL NONDURABLES 1,129,902
PRECIOUS METALS - 0.7%
Euro-Nevada Mining Ltd. 1,414,300 43,535
Euro-Nevada Mining Ltd. (e) 143,000 4,402
Franco-Nevada Mining Corp. (d) 2,005,400 100,586
Getchell Gold Corp. (a) 419,888 14,801
Indochina Goldfields Ltd. (a) 915,200 4,309
Indochina Goldfields Ltd. (a)(e) 948,400 4,465
Newmont Mining Corp. 453,100 17,671
189,769
RETAIL & WHOLESALE - 7.6%
APPAREL STORES - 0.8%
AnnTaylor Stores Corp. (a) 472,200 9,208
Charming Shoppes, Inc. (a)(d) 10,539,400 55,003
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
APPAREL STORES - CONTINUED
Gap, Inc. 966,700 $ 37,580
Goody's Family Clothing (a)(d) 1,418,300 38,826
Payless ShoeSource, Inc. (a) 370,832 20,280
Ross Stores, Inc. 85,200 2,785
TJX Companies, Inc. 2,049,600 54,058
217,740
DRUG STORES - 1.0%
CVS Corp. 5,280,104 270,605
General Nutrition Companies, Inc. (a) 107,600 3,013
273,618
GENERAL MERCHANDISE STORES - 2.2%
Coles Myer Ltd. 2,304,800 11,971
Costco Companies, Inc. (a) 2,002,400 65,829
Dayton Hudson Corp. 1,505,600 80,079
Dollar Tree Stores (a) 173,000 8,715
Federated Department Stores, Inc. (a) 368,800 12,816
Hudson's Bay Co. Ord. 60,400 1,356
K mart Corp. (a) 2,796,600 34,258
Kohls Corp. (a) 480,700 25,447
Meyer (Fred), Inc. (a) 341,200 17,636
Michaels Stores, Inc. (a) 31,400 665
Nordstrom, Inc. 632,500 31,032
Stein Mart, Inc. (a) 873,200 26,196
Wal-Mart Stores, Inc. 6,004,200 203,017
Woolworth Corp. (a) 3,266,300 78,391
Woolworths Ltd. 3,861,900 12,662
610,070
GROCERY STORES - 1.2%
Ahold NV 207,552 17,499
American Stores Co. 85,400 4,217
Asda Group PLC 7,588,900 15,665
Dominick's Supermarkets, Inc. (a)(d) 1,416,400 37,712
Fleming Companies, Inc. 249,800 4,496
Loblaw Companies Ltd. 327,900 4,512
Quality Food Centers, Inc. (a)(d) 1,249,700 47,489
Richfood Holdings, Inc. Class A (d) 2,942,450 76,504
Safeway, Inc. (a) 2,537,300 117,033
325,127
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISCELLANEOUS - 2.4%
Barnes & Noble, Inc. (a) 19,300 $ 830
Bed Bath & Beyond, Inc. 9,000 273
Circuit City Stores, Inc. - Circuit City Group 2,347,200 83,472
Comcast Corp.:
Class A 946,000 19,807
Class A special 1,075,200 22,982
Fabri-Centers of America, Inc. Class A (a) 30,300 826
Fingerhut Companies, Inc. 201,500 3,514
Hancock Fabrics, Inc. 275,000 3,781
Home Depot, Inc. (The) 4,326,500 298,258
Pier 1 Imports, Inc. 64,100 1,699
Staples, Inc. (a) 2,689,900 62,540
Tiffany & Co., Inc. 348,500 16,096
Toys "R" Us, Inc. (a) 2,284,154 79,945
U.S. Office Products Co. (a) 2,672,300 81,672
Viking Office Products, Inc. (a) 141,300 2,685
Williams-Sonoma, Inc. 9,000 385
678,765
TOTAL RETAIL & WHOLESALE 2,105,320
SERVICES - 2.9%
ADVERTISING - 0.4%
Interpublic Group of Companies, Inc. 659,900 40,460
Lycos, Inc. (a) 35,200 449
Omnicom Group, Inc. 567,300 34,960
Outdoor Systems, Inc. (a) 776,300 29,693
105,562
EDUCATIONAL SERVICES - 0.0%
Apollo Group, Inc. Class A (a) 6,300 222
LEASING & RENTAL - 0.5%
Budget Group, Inc. Class A (a)(d) 937,400 32,340
Danka Business Systems PLC sponsored ADR 187,200 7,652
Hertz Corp. Class A 1,793,500 64,566
Republic Industries, Inc. (a) 1,424,600 35,437
Ryder Systems, Inc. 423,200 13,966
153,961
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - CONTINUED
PRINTING - 0.1%
ASM Lithography Holding NV (a) 293,100 $ 17,146
Valassis Communications, Inc. (a) 315,600 7,575
24,721
SERVICES - 1.9%
ADT Ltd. (a) 4,081,600 134,693
APAC Teleservices, Inc. (a)(d) 4,427,600 86,061
AccuStaff, Inc. (a) 1,178,700 27,920
Assisted Living Concepts, Inc. (a) 32,200 890
Borg Warner Security Corp. (a) 217,600 3,890
Corestaff, Inc. 26,900 726
Corrections Corp. of America (a) 259,700 10,323
Dun & Bradstreet Corp. 425,200 11,162
Ecolab, Inc. 1,023,700 48,882
Hays PLC 2,398,200 22,756
International Service Systems AS Series B (a) 195,490 7,005
Learning Tree International, Inc. (a) 107,800 4,784
National Service Industries, Inc. 418,500 20,376
Norrell Corp. GA 61,600 2,033
Personnel Group of America, Inc. (a) 60,500 1,743
Pittston Co. (Brinks Group) 60,900 1,827
Pierce Leahy Corp. 73,300 1,319
Premier Technologies, Inc. (a) 107,700 2,800
Registry, Inc. 11,100 511
Rentokil Group PLC 6,500,056 22,788
Robert Half International, Inc. (a) 577,100 27,160
Securicor Group PLC 4,663,000 22,123
Securitas AB Class B 732,075 20,670
Service Corp. International 71,700 2,357
Snyder Communications, Inc. (a) 110,100 2,966
Staffmark, Inc. (a) 150,800 3,374
SGS Societe Generale de Surveillance Holdings SA (Bearer) 8,100 17,292
SGS Societe Generale de Surveillance Holdings SA (Reg.) (a) 11,450 4,505
Telespectrum Worldwide, Inc. (a) 1,194,500 8,399
Wackenhut Corp. 23,600 566
Wackenhut Corrections Corp. (a) 241,400 7,031
528,932
TOTAL SERVICES 813,398
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - 13.9%
COMMUNICATIONS EQUIPMENT - 4.1%
ADC Telecommunications, Inc. 96,700 $ 3,227
ACE Commerce Corp. 12,600 247
Advanced Fibre Communication, Inc. 571,900 34,528
Alcatel Alsthom Compagnie Generale d'Electricite SA 2,261,920 283,115
Boston Technology, Inc. (a) 243,900 7,210
Ciena Corp. 767,600 36,173
Cisco Systems, Inc. (a) 228,800 15,358
DSC Communications Corp. (a) 525,800 11,699
Davox Corp. (a) 205,550 7,348
Dynatech Corp. (a) 294,800 10,539
Ericsson (L.M.) Telephone Co.:
Class B 51,200 2,019
Class B ADR 1,025,000 40,359
Lucent Technologies, Inc. 4,229,300 304,774
Newbridge Networks Corp. (a) 1,851,000 80,519
Nokia Corp. AB sponsored ADR 979,800 72,260
Northern Telecom Ltd. 1,610,400 145,159
Tekelec (a) 92,700 3,279
Tellabs, Inc. (a) 1,368,000 76,437
1,134,250
COMPUTER SERVICES & SOFTWARE - 3.1%
Acxiom Corp. (a) 18,400 378
Alphanet Solutions, Inc. (a) 259,200 3,824
Aspen Technology, Inc. (a) 21,700 817
Automatic Data Processing, Inc. 2,456,500 115,456
Broderbund Software, Inc. (a) 428,200 10,571
Baan Co. NV (a) 202,300 13,933
CUC International, Inc. (a) 2,788,900 71,988
Ceridian Corp. (a) 2,209,700 93,360
Citrix Systems, Inc. (a) 541,500 23,758
Computer Learning Centers, Inc. 17,300 727
Computer Sciences Corp. (a) 153,000 11,035
DST Systems, Inc. 828,100 27,586
ECI Telecom Ltd. 443,900 13,206
Electronic Arts, Inc. (a) 121,600 4,089
Electronics for Imaging, Inc. 54,500 2,575
Engineering Animation, Inc. (a)(d) 320,200 10,807
Equifax, Inc. 1,339,600 49,816
First Data Corp. 1,507,000 66,214
GT Interactive Software, Inc. (a) 650,100 7,720
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
HBO & Co. 103,100 $ 7,101
Keane, Inc. (a) 533,400 27,737
Maxis, Inc. (a) 283,500 3,402
McAfee Associates, Inc. (a) 333,800 21,071
Metro Information Services, Inc. 26,900 531
Microsoft Corp. (a) 1,818,200 229,775
Netscape Communications Corp. (a) 107,600 3,450
New Era of Networks, Inc. 290,600 4,795
Ontrack Data International, Inc. 31,400 722
Open Market, Inc. (a) 422,400 5,597
Oracle Systems Corp. (a) 37,600 1,894
Paychex, Inc. 93,750 3,563
RWD Technologies, Inc. 29,700 512
Radiant Systems, Inc. 38,200 797
Saville Systems Ireland PLC sponsored ADR (a) 164,900 8,575
Scopus Technology, Inc. (a) 225,700 5,050
Simulation Sciences, Inc. 69,800 1,064
Symantec Corp. (a) 57,100 1,113
USCS International, Inc. (a) 191,000 6,255
Visio Corp. (a) 82,400 5,809
866,673
COMPUTERS & OFFICE EQUIPMENT - 2.3%
Apex PC Solutions, Inc. 22,400 443
Bay Networks, Inc. (a) 44,800 1,190
Bell & Howell Co. (a) 154,200 4,751
Compaq Computer Corp. (a) 1,300,300 129,055
Comverse Technology, Inc. (a) 127,800 6,646
Creative Technology Corp. Ltd. (a) 321,800 5,471
Data General Corp. (a) 474,000 12,324
Dell Computer Corp. (a) 937,600 110,109
Diebold, Inc. 107,600 4,196
EMC Corp. (a) 3,675,600 143,348
International Business Machines Corp. 422,600 38,113
Kronos, Inc. (a)(d) 568,500 15,634
Pitney Bowes, Inc. 1,059,900 73,663
Procom Technology, Inc. 396,300 4,260
Quantum Corp. (a) 1,269,800 25,793
Seagate Technology (a) 4,500 158
Stratus Computer, Inc. (a) 242,900 12,145
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Sun Microsystems, Inc. (a) 334,500 $ 12,450
Symbol Technologies, Inc. 1,214,800 40,848
640,597
ELECTRONIC INSTRUMENTS - 1.1%
Applied Materials, Inc. (a) 806,100 57,081
KLA Instruments Corp. (a) 276,100 13,460
Novellus Systems, Inc. 1,200 104
Perkin-Elmer Corp. 1,249,100 99,382
Tektronix, Inc. 242,000 14,520
Teradyne, Inc. (a) 441,100 17,313
Thermo Electron Corp. (a) 1,925,300 65,460
Thermoquest Corp. (a) 50,400 781
Waters Corp. (a) 995,700 35,721
303,822
ELECTRONICS - 3.1%
Altera Corp. (a) 811,000 40,955
Analog Devices, Inc. (a) 130,600 3,469
DII Group, Inc. 80,700 3,551
Etec Systems, Inc. (a) 42,600 1,826
Intel Corp. 776,400 110,103
KEMET Corp. (a) 140,000 3,483
Kent Electronics Corp. (a) 65,900 2,418
Lattice Semiconductor Corp. (a) 460,400 26,013
Linear Technology Corp. 275,300 14,247
MRV Communications, Inc. (a) 107,600 3,174
Maxim Integrated Products, Inc. (a) 461,800 26,265
Microchip Technology, Inc. (a) 267,850 7,969
Micron Technology, Inc. 2,265,100 90,462
Motorola, Inc. 1,055,700 80,233
National Semiconductor Corp. (a) 1,881,700 57,627
PMC-Sierra, Inc. (a) 305,300 8,014
Photronics, Inc. (a) 71,900 3,433
SGS Thomson Microelectronics NV 64,800 5,184
Sanmina Corp. (a) 47,100 2,991
Semtech Corp. (a)(d) 456,850 16,675
Solectron Corp. (a) 169,700 11,879
Sterling Commerce, Inc. 81,200 2,669
Storage Technology Corp. (a) 618,500 27,523
Texas Instruments, Inc. 3,358,200 282,299
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Vishay Intertechnology, Inc. 725 $ 21
Vitesse Semiconductor Corp. (a) 292,300 9,555
Zero Corp. (d) 652,000 17,115
859,153
PHOTOGRAPHIC EQUIPMENT - 0.2%
Polaroid Corp. 1,099,000 60,995
TOTAL TECHNOLOGY 3,865,490
TRANSPORTATION - 1.1%
AIR TRANSPORTATION - 0.3%
Comair Holdings, Inc. 118,400 3,279
Continental Airlines, Inc. Class B (a) 1,492,700 52,151
Delta Air Lines, Inc. 298,500 24,477
Ryanair Holdings PLC sponsored ADR 115,400 3,130
Viad Corp. 375,700 7,232
90,269
RAILROADS - 0.3%
Bombardier, Inc. Class B 647,800 14,686
CSX Corp. 223,600 12,410
Canadian Pacific Ltd. 23,100 658
Canadian National Railway Co. 152,400 6,645
Wisconsin Central Transportation Corp. (a) 1,326,100 49,397
83,796
TRUCKING & FREIGHT - 0.5%
Air Express International Corp. 68,000 2,702
Airborne Freight Corp. 12,500 523
CNF Transportation, Inc. 1,478,200 47,672
Expeditors International of Washington, Inc. 327,100 9,281
Roadway Express, Inc. 193,600 4,525
Swift Transportation Co., Inc. (a) 380,700 11,231
USFreightways Corp. 865,000 22,382
Werner Enterprises, Inc. 31,100 603
XTRA Corp. 40,000 1,758
Yellow Corp. (a) 1,112,000 24,881
125,558
TOTAL TRANSPORTATION 299,623
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - 2.9%
CELLULAR - 0.3%
Mobile Telecommunications Technologies, Inc. (a) 1,195,800 $ 17,115
Vodafone Group PLC sponsored ADR 1,122,900 54,390
71,505
ELECTRIC UTILITY - 0.5%
Edison International 2,934,600 72,998
Korea Electric Power Corp. 57,640 1,720
National Grid Co. PLC 14,349,400 52,433
Ogden Corp. 80,700 1,755
128,906
GAS - 0.2%
El Paso Natural Gas Co. 723,600 39,799
Enron Corp. 363,100 14,819
Sonat, Inc. 282,100 14,458
69,076
TELEPHONE SERVICES - 1.9%
Brooks Fiber Properties, Inc. (a) 1,094,300 36,934
Cable & Wireless PLC Ord. 5,837,800 53,450
Cincinnati Bell, Inc. 234,900 7,399
Excel Communication, Inc. 174,200 5,008
MCI Communications Corp. 1,769,300 67,731
McLeodUSA, Inc. 1,164,800 39,312
Qwest Communications International, Inc. 389,000 10,600
Sprint Corp. 49,400 2,600
STAR Telecommunications, Inc. 428,600 5,679
Tel-Save Holdings, Inc. (a) 22,400 342
Telco Communications Group, Inc. 343,100 11,151
Teleport Communications Group, Inc. Class A (a) 887,300 30,279
US WEST Media Group (a) 940,600 19,047
WorldCom, Inc. (a) 7,963,700 254,838
544,370
TOTAL UTILITIES 813,857
TOTAL COMMON STOCKS
(Cost $19,979,967) 25,506,223
PREFERRED STOCKS - 0.9%
SHARES VALUE (NOTE 1)
(000S)
CONVERTIBLE PREFERRED STOCKS - 0.3%
CONSTRUCTION & REAL ESTATE - 0.2%
REAL ESTATE INVESTMENT TRUSTS - 0.2%
Vornado Realty Trust, Series A, $3.25 1,058,300 $ 57,280
RETAIL & WHOLESALE - 0.1%
APPAREL STORES - 0.1%
TJX Companies, Inc., Series E, $7.00 73,500 20,948
TOTAL CONVERTIBLE PREFERRED STOCKS 78,228
NONCONVERTIBLE PREFERRED STOCKS - 0.6%
TECHNOLOGY - 0.2%
COMPUTER SERVICES & SOFTWARE - 0.2%
SAP AG 256,200 52,840
UTILITIES - 0.4%
TELEPHONE SERVICES - 0.4%
Stet (Societa Finanziaria Telefonica) Spa 12,765,500 44,235
Telecom Italia Mobile Spa de Risp 37,958,900 67,377
111,612
TOTAL NONCONVERTIBLE PREFERRED STOCKS 164,452
TOTAL PREFERRED STOCKS
(Cost $224,756) 242,680
CORPORATE BONDS - 0.1%
MOODY'S PRINCIPAL AMOUNT VALUE (NOTE 1)
RATINGS (C) (000S) (000S)
HEALTH - 0.1%
MEDICAL FACILITIES MANAGEMENT - 0.1%
NovaCare, Inc. 5 1/2%, 1/15/00 B1 $ 15,450 $ 14,523
MEDIA & LEISURE - 0.0%
BROADCASTING - 0.0%
Home Shopping Network, Inc.
5 7/8%, 3/1/06 (e) B- 4,152 5,325
TECHNOLOGY - 0.0%
ELECTRONICS - 0.0%
National Semiconductor Corp.
6 1/2%, 10/1/02 (e) Ba2 12,640 13,035
TOTAL CORPORATE BONDS
(Cost $28,713) 32,883
U.S. TREASURY OBLIGATIONS - 1.2%
7 5/8%, 2/15/25 Aaa 260,110 284,821
6 3/4%, 8/15/26 Aaa 44,000 43,546
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $335,557) 328,367
CASH EQUIVALENTS - 6.4%
MATURITY AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account dated 6/30/97 due 7/1/97:
at 5 7/8% $ 12,036 12,034
at 5.93% 21,313 21,309
SHARES
Taxable Central Cash Fund (b) 1,761,666,294 1,761,666
TOTAL CASH EQUIVALENTS
(Cost $1,795,009) 1,795,009
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $22,364,002) $ 27,905,162
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.58%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
3. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
4. Affiliated company (see Note 8 of Notes to Financial Statements).
5. 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 $44,922,000 or 0.2% of net
assets.
6. 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 (000S)
Grand Palais
Management Co., LP 7/24/96 $ --
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 83.6%
Netherlands 4.2
United Kingdom 2.5
Canada 2.2
Switzerland 1.5
France 1.4
Bermuda 1.1
Others (individually less than 1%) 3.5
TOTAL 100.0%
INCOME TAX INFORMATION
At June 30, 1997, the aggregate cost of investment securities for income
tax purposes was $22,382,099,000. Net unrealized appreciation aggregated
$5,523,063,000, of which $5,802,295,000 related to appreciated investment
securities and $279,232,000 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) JUNE 30, 1997 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 27,905,162
agreements of $33,343) (cost $22,364,002) - See
accompanying schedule
Receivable for investments sold 505,563
Receivable for fund shares sold 66,104
Dividends receivable 26,465
Interest receivable 17,406
Other receivables 755
TOTAL ASSETS 28,521,455
LIABILITIES
Payable to custodian bank $ 495
Payable for investments purchased 347,287
Payable for fund shares redeemed 65,605
Accrued management fee 10,881
Other payables and accrued expenses 5,241
Collateral on securities loaned, at value 499,124
TOTAL LIABILITIES 928,633
NET ASSETS $ 27,592,822
Net Assets consist of:
Paid in capital $ 20,828,368
Undistributed net investment income 146,469
Accumulated undistributed net realized gain (loss) on 1,076,867
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 5,541,118
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 598,406 shares outstanding $ 27,592,822
NET ASSET VALUE and redemption price per $46.11
share ($27,592,822 (divided by) 598,406 shares)
Maximum offering price per share (100/97.00 of $46.11) $47.54
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED)
INVESTMENT INCOME $ 150,776
Dividends (including $4,710 received from
affiliated issuers)
Interest (including income on securities loaned of $55) 84,238
TOTAL INCOME 235,014
EXPENSES
Management fee $ 76,501
Basic fee
Performance adjustment (14,516)
Transfer agent fees 26,689
Accounting and security lending fees 511
Non-interested trustees' compensation 57
Custodian fees and expenses 826
Registration fees 859
Audit 113
Legal 40
Interest 3
Miscellaneous 45
Total expenses before reductions 91,128
Expense reductions (5,024) 86,104
NET INVESTMENT INCOME 148,910
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain of 1,156,838
$55,485
on sales of investments in affiliated issuers)
Foreign currency transactions (164) 1,156,674
Change in net unrealized appreciation (depreciation) on:
Investment securities 1,458,463
Assets and liabilities in foreign currencies (39) 1,458,424
NET GAIN (LOSS) 2,615,098
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 2,764,008
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, 1997 1996
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 148,910 $ 247,680
Net investment income
Net realized gain (loss) 1,156,674 1,301,229
Change in net unrealized appreciation (depreciation) 1,458,424 2,377,237
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 2,764,008 3,926,146
FROM OPERATIONS
Distributions to shareholders - (205,408)
From net investment income
From net realized gain (413,188) (1,597,799)
TOTAL DISTRIBUTIONS (413,188) (1,803,207)
Share transactions 4,471,326 9,573,613
Net proceeds from sales of shares
Reinvestment of distributions 407,672 1,776,511
Cost of shares redeemed (3,465,820) (4,502,101)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,413,178 6,848,023
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 3,763,998 8,970,962
NET ASSETS
Beginning of period 23,828,824 14,857,862
End of period (including undistributed net investment $ 27,592,822 $ 23,828,824
income of $146,469 and $40,761, respectively)
OTHER INFORMATION
Shares
Sold 104,200 242,915
Issued in reinvestment of distributions 9,583 44,832
Redeemed (80,749) (113,133)
Net increase (decrease) 33,034 174,614
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1997
(UNAUDITED) 1996 1995 1994 1993 E 1992
SELECTED PER-SHARE DATA
Net asset value, $ 42.15 $ 38.02 $ 30.28 $ 30.84 $ 27.47 $ 25.60
beginning of period
Income from Investment
Operations
Net investment .25 D .46 .03 .06 .14 .32 D
income
Net realized and 4.42 7.50 10.93 (.40) 5.66 3.67
unrealized gain
(loss)
Total from investment 4.67 7.96 10.96 (.34) 5.80 3.99
operations
Less Distributions - (.38) (.09) - (.11) (.20)
From net investment
income
In excess of net - - - - (.07) -
investment income
From net realized (.71) (3.45) (3.13) (.22) (2.25) (1.92)
gain
Total distributions (.71) (3.83) (3.22) (.22) (2.43) (2.12)
Net asset value, end $ 46.11 $ 42.15 $ 38.02 $ 30.28 $ 30.84 $ 27.47
of period
TOTAL RETURN B, C 11.22% 21.94% 36.28% (1.12) 21.43% 15.89
% %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 27,593 $ 23,829 $ 14,858 $ 8,694 $ 6,208 $ 1,986
period (in millions)
Ratio of expenses to .72% A .83% .98% 1.03% 1.08% .87
average net assets %
Ratio of expenses to .68% A .79% .96% 1.00% 1.06% .87
average net assets , F F F F F %
after expense
reductions
Ratio of net investment 1.18% A 1.28% .44% .59% .46% 1.19
income to average %
net assets
Portfolio turnover rate 165% A 159% 223% 235% 255% 297
%
Average commission $ .0346 $ .0358
rate G
A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL
STATEMENTS). C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS
THAN ONE YEAR ARE NOT ANNUALIZED. D NET
INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE
PERIOD. E 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. F 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 7 OF NOTES TO FINANCIAL STATEMENTS). G 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.
</TABLE>
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1997 (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 with remaining maturities
of sixty days or less for which quotations are not readily available 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. Income receipts
and expense payments are translated into U.S. dollars at the prevailing
exchange rate on the respective dates of the transactions. Purchases and
sales of securities are translated into U.S. dollars at the contractual
currency exchange rates established at the time of each trade.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, 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. Non-cash dividends included in dividend income, if any,
are recorded at
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
the fair market value of the securities received. Interest income is
accrued as earned. Investment income is recorded 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, options transactions, foreign currency transactions, passive
foreign investment companies (PFIC), 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 which 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.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated securities.
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 foreign currency contracts is determined using contractual
currency exchange rates established at the time of each trade. The cost of
the foreign currency contracts is included in the cost basis of the
associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), 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 agreements for 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
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
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.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the
SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund)
managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end
money market fund available only to investment companies and other accounts
managed by FMR and its affiliates. The Cash Fund seeks preservation of
capital, liquidity, and current income by investing in U.S. Treasury
securities and repurchase agreements for these securities. Income
distributions from the Cash Fund are declared daily and paid monthly from
net interest income. Income distributions received by the fund are recorded
as interest income in the accompanying financial statements.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally 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 $0.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $20,480,350,000 and $19,328,236,000, respectively, of which U.S.
government and government agency obligations aggregated $0 and
$763,523,000, 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. The annual individual
fund fee rate is .30%. 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 basic fee is subject to a performance adjustment (up to a maximum of
".20% of the fund's average net assets over the performance period) based
on the fund's
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
investment performance as compared to the appropriate index over a
specified period of time. For the period, the management fee was equivalent
to an annualized rate of .49% 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 $5,324,000 on sales of shares of the fund.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (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
.21% 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 $6,415,000 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 $478,785,000 and
$499,124,000, respectively.
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the period for
which loans were outstanding amounted to $9,981,000 and $8,389,500,
respectively. The weighted average interest rate was 5.56%.
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
$4,428,000 under this arrangement.
In addition, the fund has entered into arrangements with its custodian and
transfer agent whereby credits realized as a result of uninvested cash
balances were used to reduce a portion of the
fund's expenses. During the period, the fund's custodian and transfer agent
fees were reduced by $10,000 and $586,000, respectively, under these
arrangements.
8. 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
AFFILIATE COST COST INCOME VALUE
American Exploration Co. $ - $ - $ - $ -
APAC Teleservices, Inc. 55,177 6,793 - 86,061
Applied Magnetics Corp. - 2,916 - -
Bedford Property Investors, Inc. 5,993 2,298 397 13,912
Big Flower Press Holdings, Inc. 33,900 - - 35,136
BJ Services Co. - 1,393 - -
Budget Group, Inc. Class A 4,513 1,255 - 32,340
Cambrex Corp. 5,830 - 33 31,766
Camco International, Inc. - 11,971 200 -
Cato Corp. Class A - 7,804 36 -
Charming Shoppes, Inc. 3,245 - - 55,003
Cooper Cameron Corp. - - - -
Consolidated Cigar Holdings, Inc.
Class A 13,357 - - 24,143
Cross-Continent Auto Retailers, Inc. 1,474 213 - -
Dominick's Supermarkets, Inc. 12,226 - - 37,712
Education Management Corp. - - - -
Engineering Animation, Inc. 9,577 270 - 10,807
ENSCO International, Inc. 17,355 63,959 - 221,930
Franco-Nevada Mining Corp. 1,992 - 935 100,586
Golf Trust of America, Inc. 6,258 1,250 65 10,655
Goody's Family Clothing 2,915 4,098 - 38,826
Integrated Health Services, Inc. 14,965 - - 64,838
Kaydon Corp. - 3,831 144 51,218
Kronos, Inc. - 5,713 - 15,634
Mazel Stores, Inc. - - - -
Midway Games, Inc. - - - -
Nabors Industries, Inc. - 17,944 - -
National-Oilwell, Inc. - - - -
New Holland NV 10,049 3,938 1,303 77,748
Newfield Exploration Co. 1,062 13,145 - 37,726
O'Gara Co. - - - -
8. TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND
AFFILIATE COST COST INCOME VALUE
Ontrack Data International, Inc. $ - $ - $ - $ -
Pogo Producing Co. - 9,170 86 -
Procom Technology, Inc. - - - -
Quality Food Centers, Inc. 8,922 - - 47,489
Richfood Holdings, Inc. Class A 1,471 8,699 191 76,504
SPX Corp. - 4,383 111 62,492
Security-Connecticut Corp. 12,078 - 445 34,139
Semtech Corp. 6,292 - - 16,675
Silgan Holdings, Inc. 3,646 411 - 12,617
Smartalk Teleservices, Inc. - 2,341 - -
Smedvig AS 4,935 7,785 - -
Smith International, Inc. 5,889 20,931 - 193,252
Snyder Communications, Inc. - - - -
Starwood Lodging Trust combined
certificate (SBI) 4,869 - 702 102,284
Sunrise Assisted Living, Inc. 3,447 - - 36,715
Swisher International Group, Inc. 368 242 - 9,751
Telespectrum Worldwide, Inc. 4,219 3,643 - -
Tongkah Holdings BHD - - - 18,304
United Auto Group, Inc. 1,518 553 - -
United Meridian Corp. - 23,635 - -
Varco International, Inc. - 4,973 - -
Vintage Petroleum, Inc. - - 24 -
Zero Corp. 1,610 795 38 17,115
TOTALS $ 259,152 $ 236,352 $ 4,710 $ 1,573,378
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate the
service, and on your first call, the system will help you create a personal
identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
1
For quotes.*
2
For account balances and holdings.
3
To review orders and mutual
fund activity.
4
To change your PIN.
5
To speak to a Fidelity representative.
*
0
BY PC
Fidelity's Web site on the Internet provides a wide range of information,
including daily financial news, fund performance, interactive planning
tools and news about Fidelity products and services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at 1-800-544-7272
for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity at
1-800-544-7272 or visit our Web site for more information on how to manage
your investments via your PC.
* 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.
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
Robert C. Pozen, Senior Vice President
William J. Hayes, Vice President
Abigail Johnson, Vice President
Will Danoff, Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
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