FIDELITY
(registered trademark)
CONTRAFUND
ANNUAL REPORT
DECEMBER 31, 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 36 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 40 Notes to the financial statements.
REPORT OF INDEPENDENT 47 The auditors' opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
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:
Although stocks managed to post solid returns throughout 1996, signs of
strength in the economy have led to inflation fears, causing some
uncertainty in both the stock and bond markets. 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. 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 DECEMBER 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Contrafund 21.94% 131.23% 532.76%
Contrafund (incl. 3% sales charge) 18.28% 124.29% 513.78%
S&P 500(registered trademark) 22.96% 103.09% 314.99%
Growth Funds Average 19.24% 87.06% 266.86%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, 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 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 669 mutual funds
with similar objectives tracked by Lipper Analytical Services, Inc. over
the past one year. Both benchmarks reflect reinvestment of dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Contrafund 21.94% 18.25% 20.26%
Contrafund (incl. 3% sales charge) 18.28% 17.53% 19.90%
S&P 500 22.96% 15.22% 15.27%
Growth Funds Average 19.24% 13.04% 13.47%
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
IMAHDR PRASUN SHR__CHT 19961231 19970109 104853 S00000000000001
Contrafund SP Standard & Poor 500
00022 SP001
1986/12/31 9700.00 10000.00
1987/01/31 11100.44 11347.00
1987/02/28 11779.14 11795.21
1987/03/31 11974.42 12136.09
1987/04/30 12001.05 12028.08
1987/05/31 12107.57 12132.72
1987/06/30 12551.40 12745.42
1987/07/31 13163.88 13391.62
1987/08/31 13643.21 13891.12
1987/09/30 13368.04 13586.91
1987/10/31 9506.75 10660.29
1987/11/30 8983.04 9781.88
1987/12/31 9515.63 10526.28
1988/01/31 10128.11 10969.44
1988/02/29 10589.69 11480.61
1988/03/31 10607.44 11125.86
1988/04/30 10820.47 11249.36
1988/05/31 10669.57 11347.23
1988/06/30 11184.41 11868.07
1988/07/31 11264.30 11822.97
1988/08/31 11015.76 11420.99
1988/09/30 11468.46 11907.52
1988/10/31 11770.26 12238.55
1988/11/30 11681.50 12063.54
1988/12/31 11516.02 12274.65
1989/01/31 12280.72 13173.16
1989/02/28 12207.89 12845.14
1989/03/31 12854.25 13144.44
1989/04/30 13682.67 13826.63
1989/05/31 14392.75 14386.61
1989/06/30 14301.72 14304.61
1989/07/31 15612.63 15596.31
1989/08/31 16058.71 15902.00
1989/09/30 16368.23 15836.80
1989/10/31 15876.63 15469.39
1989/11/30 16240.78 15784.96
1989/12/31 16485.40 16163.80
1990/01/31 15611.03 15079.21
1990/02/28 15935.23 15273.73
1990/03/31 16279.09 15678.49
1990/04/30 16112.07 15286.53
1990/05/31 17634.86 16776.96
1990/06/30 17860.82 16662.88
1990/07/31 17526.79 16609.56
1990/08/31 16161.19 15108.05
1990/09/30 15483.31 14372.29
1990/10/31 15561.90 14310.49
1990/11/30 16485.40 15234.95
1990/12/31 17134.27 15660.00
1991/01/31 18803.26 16342.78
1991/02/28 20225.36 17511.29
1991/03/31 21410.43 17935.06
1991/04/30 21528.94 17978.11
1991/05/31 22901.66 18754.76
1991/06/30 21617.82 17895.79
1991/07/31 23148.55 18729.74
1991/08/31 24313.88 19173.63
1991/09/30 24383.01 18853.43
1991/10/31 25084.18 19106.07
1991/11/30 23760.84 18336.09
1991/12/31 26544.16 20433.74
1992/01/31 27301.08 20053.67
1992/02/29 28187.04 20314.37
1992/03/31 27422.07 19918.24
1992/04/30 27719.56 20503.84
1992/05/31 28017.04 20604.31
1992/06/30 27337.07 20297.30
1992/07/31 28027.67 21127.46
1992/08/31 27507.06 20694.35
1992/09/30 27974.55 20938.54
1992/10/31 28601.40 21011.83
1992/11/30 29982.59 21728.33
1992/12/31 30763.07 21995.59
1993/01/31 31737.36 22180.35
1993/02/28 31946.73 22482.00
1993/03/31 33473.39 22956.37
1993/04/30 33699.56 22400.83
1993/05/31 35033.98 23001.17
1993/06/30 35045.28 23067.88
1993/07/31 35429.78 22975.60
1993/08/31 37148.68 23846.38
1993/09/30 37227.84 23662.76
1993/10/31 37555.79 24152.58
1993/11/30 36142.22 23923.13
1993/12/31 37354.42 24212.60
1994/01/31 38529.32 25035.83
1994/02/28 38252.88 24357.36
1994/03/31 36740.33 23295.38
1994/04/30 37191.65 23593.56
1994/05/31 36984.29 23980.49
1994/06/30 35557.12 23392.97
1994/07/31 36276.80 24160.26
1994/08/31 37789.35 25150.83
1994/09/30 37289.23 24534.64
1994/10/31 38350.46 25086.67
1994/11/30 36606.15 24173.01
1994/12/31 36935.49 24531.50
1995/01/31 36337.79 25167.60
1995/02/28 37801.55 26148.38
1995/03/31 39179.92 26920.02
1995/04/30 40948.63 27712.81
1995/05/31 41936.67 28820.49
1995/06/30 44595.83 29489.99
1995/07/31 48011.26 30467.88
1995/08/31 48645.56 30544.36
1995/09/30 49536.01 31833.33
1995/10/31 48633.36 31719.68
1995/11/30 49914.15 33112.18
1995/12/31 50335.72 33749.92
1996/01/31 51474.30 34898.76
1996/02/29 51788.11 35222.28
1996/03/31 53225.51 35561.47
1996/04/30 54872.23 36085.64
1996/05/31 55332.76 37016.29
1996/06/30 54914.10 37157.32
1996/07/31 52346.32 35515.71
1996/08/31 54341.93 36264.74
1996/09/30 56574.78 38305.72
1996/10/31 58388.97 39362.19
1996/11/30 61780.10 42337.58
1996/12/31 61377.83 41498.87
IMATRL PRASUN SHR__CHT 19961231 19970109 104856 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Contrafund on December 31, 1986, and the current maximum 3%
sales charge was paid. As the chart shows, by December 31, 1996, the value
of the investment would have grown to $61,378 - a 513.78% 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 $41,499 - a 314.99% 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
MARKET RECAP
Paced by the robust performance
of blue chip stocks, the U.S. stock
market posted strong gains for
the year that ended December
31, 1996. The Standard & Poor's
500 Index returned 22.96%
during the period - well above its
long-term average of about 12%.
The stock market spent much of
the past year breaking price and
trading volume records. Solid
corporate earnings reports, large
cash inflows into mutual funds,
widespread optimism and a
generally favorable interest rate
environment propelled share
prices higher. Large capitalization
stocks thrived as investors
sought their lower volatility and
higher degree of liquidity over
smaller cap stocks in an
environment where it was
sometimes difficult to discern the
health of the economy. While
short-term confusion over the
direction of interest rates created
a volatile backdrop in the summer
months, stocks rallied again
when the Federal Reserve Board
left short-term interest rates
unchanged and it appeared
inflation would not be an issue for
the remainder of 1996. The Dow
Jones Industrial Average closed
above 6500 for the first time in
November. Stock markets ended
the year on an up note after
experiencing some volatility
sparked by comments by Fed
Chairman Alan Greenspan in
December about the market's
exuberance.
An interview with Will Danoff, Portfolio Manager of Fidelity Contrafund
Q. HOW DID THE FUND PERFORM, WILL?
A. The fund provided shareholders a return of 21.94% for the one-year
period that ended on December 31, 1996. In comparison, the growth funds
average was 19.24%, according to Lipper Analytical Services, and the
Standard & Poor's 500 Index rose 22.96% during the same time frame.
Q. WHAT WAS THE INVESTING ENVIRONMENT LIKE IN 1996?
A. The market environment was more difficult than the Dow Jones Industrial
Index's 28.70% performance would indicate. Market breadth, measured by the
number of stocks participating in a rally, was only fair.
Larger-capitalization companies led the market's advance, and broader
measures of market performance lagged. Specifically, the Russell 2000
Index, which measures the performance of smaller-cap companies, and the
Standard & Poor's MidCap 400 Index rose 16.49% and 19.20%, respectively,
both below the S&P 500 Index's advance in 1996. In addition, the sectors
leading the market changed frequently during the year, a phenomenon called
market rotation. For example, the technology sector - and particularly the
semiconductor stocks - was borderline schizophrenic. Semiconductor stocks
plunged by a third or more in July's correction after performing poorly
during the first six months of the year, then rose sharply in the second
half of the year. This volatility made for a more challenging year than
usual for stock fund portfolio managers.
Q. WHAT FACTORS CONTRIBUTED TO THE FUND'S PERFORMANCE SINCE YOUR REPORT TO
SHAREHOLDERS EARLY IN THE SUMMER?
A. The fund's investments in the energy and energy services sectors, which
accounted for approximately 24% of the fund's holdings on December 31,
helped it to perform better than most of its peers. I started adding to our
holdings in these sectors because I felt that the market was too
pessimistic about the prospects for energy-related companies and was
under-valuing them as a result. As it turned out, the sector rose about 45%
during the year, and our holdings in Schlumberger, Halliburton, British
Petroleum, ENSCO and Unocal, among others, appreciated nicely since the
last report to you. Production capacity in the energy industry has been
shrinking for the past decade, and capacity utilization exceeded 90 percent
in 1996. With conditions so tight in the sector, earnings exploded when oil
and natural gas prices rose throughout the year.
Q. YOU SIGNIFICANTLY INCREASED THE FUND'S HOLDINGS IN TECHNOLOGY FROM SIX
MONTHS AGO. HOW DID IT WORK OUT?
A. Since many technology stocks were temporarily out of favor after the
summer correction I mentioned earlier, I boosted the fund's technology
holdings to almost 14% of our investments from just 5% at the end of June.
Computing and electronics continue to play a growing part in the global
economy, and earnings in both sectors rebounded significantly after the
industry's excessive inventory position returned to normal levels during
the second quarter. The fund's holdings in IBM, Intel and EMC did
particularly well during the period.
Q. DESPITE OUTPERFORMING ITS PEER GROUP, THE FUND MUST HAVE SUFFERED SOME
DISAPPOINTMENTS. WHAT DECISIONS DO YOU REGRET?
A. The biggest disappointment to me as both the manager and a shareholder
of the fund was carrying too much cash during the year. While I reduced the
fund's cash position from 15% six months ago to under 10% at the end of
December, not being more fully invested in the stock market undeniably hurt
the fund's performance. Given the market's strong performance, I estimate
the fund's cash position detracted 2% from the fund's showing in 1996. I
was correct to hold cash during the technology rout in the spring, but I
regret not moving faster to build the fund's technology positions after
fundamentals began to improve in the late summer.
Q. WHAT'S YOUR OUTLOOK FOR THE FIRST HALF OF 1997, WILL?
A. While the stock market outlook appears bright, expectations are high.
Inflation remains low, and corporate profit growth remains good, fueled by
excellent productivity gains. I have attempted to position the fund to
participate if the market continues its ascent in 1997. But, as I did last
year, I have tried to dampen some of the downside risk should unforeseen
events cloud the otherwise clear economic skies. Stocks could fall
meaningfully if interest rates continue their recent rise, or if a slowing
economy or the strong U.S. dollar hurt corporate earnings growth. With the
help of Fidelity's large research staff, I'll continue to look for those
investment ideas that will perform well regardless of the market
environment.
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 December 31,
1996, more than $23 billion
MANAGER: Will Danoff,
since 1990; manager, VIP II:
Contrafund, since 1995;
Fidelity Select Retailing
Portfolio, 1986-1989; joined
Fidelity in 1986
(checkmark)
WILL DANOFF ON CONTRAFUND'S
INVESTMENT STYLE:
"The fund continually seeks
companies experiencing
positive fundamental change
and accelerating earnings
growth. Examples of
improving fundamentals
include such corporate
developments as a dynamic
new management team, a
successful new product
launch, a significant
cost-cutting initiative, a sale of
a losing or underearning
subsidiary, a merger or
acquisition that improves the
company's growth prospects,
or a reduction in industry
capacity leading to improved
pricing. Several of the fund's
energy and energy service
holdings, for instance,
benefited from rising prices
derived from tight industry
supply that have led to strong
performance over the past
year.
"I also attempt to invest in
companies that I perceive to be
improving their business
prospects and are in better
health than is appreciated by
the general market. In keeping
with the fund's contrarian
philosophy, I try to find these
companies before the market
has fully appreciated their
potential - not necessarily
before anyone has heard of the
stock, but while the general
investing public is, in my view,
still too pessimistic about the
company's prospects to buy
its stock."
DISTRIBUTIONS
A total of 6.80% of the dividends
distributed during the fiscal year
was derived from interest on
U.S. Government securities
which is generally exempt from
state income tax.
The fund notified
shareholders in January 1997
of the applicable percentage
for use in preparing 1996
income tax returns.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF DECEMBER 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Schlumberger Ltd. 2.2 1.9
International Business Machines 1.5 0.0
Corp.
Intel Corp. 1.4 0.2
Royal Dutch Petroleum Co. ADR 1.2 1.3
ENSCO International, Inc. 1.1 0.6
Halliburton Co. 1.1 1.0
British Petroleum PLC ADR 1.0 0.8
BankAmerica Corp. 0.8 0.6
Federal National Mortgage 0.8 0.5
Association
Smith International, Inc. 0.7 0.6
TOP FIVE MARKET SECTORS AS OF DECEMBER 31, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET
SECTORS
6 MONTHS AGO
Energy 23.5 21.1
Technology 13.9 5.2
Finance 10.7 7.8
Retail & Wholesale 6.4 8.1
Basic Industries 4.1 5.7
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF DECEMBER 31, 1996 * AS OF JUNE 30, 1996 **
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
Row: 1, Col: 1, Value: 15.1
Row: 1, Col: 2, Value: 2.3
Row: 1, Col: 3, Value: 42.6
Row: 1, Col: 4, Value: 40.0
Stocks 88.3%
Bonds 5.0%
Short-term
investments 6.7%
FOREIGN
INVESTMENTS 11.4%
Stocks 82.6%
Bonds 2.3%
Short-term
investments 15.1%
FOREIGN
INVESTMENTS 15.2%
*
**
INVESTMENTS DECEMBER 31, 1996
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 88.2%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 1.5%
AEROSPACE & DEFENSE - 1.3%
BE Aerospace, Inc. (a) 68,200 $ 1,849
Boeing Co. 1,275,560 135,688
Gulfstream Aerospace Corp. (a) 1,110,800 26,937
Lockheed Martin Corp. 695,200 63,611
McDonnell Douglas Corp. 933,400 59,738
Orbital Sciences Corp. (a) 398,500 6,874
Sundstrand Corp. 305,700 12,992
307,689
SHIP BUILDING & REPAIR - 0.2%
Avondale Industries, Inc. (a) 258,000 5,547
General Dynamics Corp. 718,100 50,626
56,173
TOTAL AEROSPACE & DEFENSE 363,862
BASIC INDUSTRIES - 4.1%
CHEMICALS & PLASTICS - 2.4%
Air Products & Chemicals, Inc. 645,700 44,634
Avery Dennison Corp. 656,600 23,227
Betz Dearborn, Inc. 237,700 13,905
Cambrex Corp. (c) 632,250 20,706
Crompton & Knowles Corp. 3,433,217 66,089
Cytec Industries, Inc. (a) 343,600 13,959
du Pont (E.I.) de Nemours & Co. 1,221,300 115,260
FMC Corp. (a) 47,700 3,345
International Specialty Products, Inc. (a) 231,400 2,835
Monsanto Co. 2,617,000 101,736
Nalco Chemical Co. 306,900 11,087
Olin Corp. 105,400 3,966
Potash Corp. of Saskatchewan 59,200 5,040
Praxair, Inc. 1,481,500 68,334
Raychem Corp. 10,700 857
Sealed Air Corp. (a) 1,285,600 53,513
Union Carbide Corp. 297,900 12,177
Witco Corp. 325,700 9,934
570,604
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
IRON & STEEL - 0.0%
Steel Dynamics, Inc. (a) 475,400 $ 9,092
METALS & MINING - 0.4%
Alcan Aluminium Ltd. 200,400 6,761
Aluminum Co. of America 200,200 12,763
Falconbridge Ltd. 272,000 5,794
Falconbridge Ltd. 2nd Installment Receipt (f) 957,100 13,684
Freeport-McMoRan Copper & Gold, Inc. Class B 818,300 24,447
Inco Ltd. 60,100 1,918
QNI Ltd. 2,788,700 5,608
Tongkah Holdings BHD (c) 9,587,000 14,729
85,704
PACKAGING & CONTAINERS - 0.5%
Corning, Inc. 507,200 23,457
Crown Cork & Seal Co., Inc. 397,400 21,609
Owens-Illinois, Inc. (a) 3,025,400 68,828
113,894
PAPER & FOREST PRODUCTS - 0.8%
Arab Malaysian Corp. BHD 7,961,000 39,718
American Pad & Paper Co. (a) 635,000 14,367
James River Corp. of Virginia 572,400 18,961
Kimberly-Clark Corp. 861,100 82,020
Malakoff BHD 8,544,000 41,950
197,016
TOTAL BASIC INDUSTRIES 976,310
CONGLOMERATES - 1.3%
AlliedSignal, Inc. 1,047,000 70,149
American Standard Companies, Inc. (a) 568,900 21,760
Berkshire Hathaway, Inc. (a) 270 9,208
Brascan Ltd. Class A 459,700 10,228
Coltec Industries, Inc. (a) 231,300 4,366
GenCorp, Inc. 409,700 7,426
Lancaster Colony Corp. 123,500 5,681
Textron, Inc. 32,800 3,091
Tyco International Ltd. 2,836,900 150,001
United Technologies Corp. 203,000 13,398
295,308
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - 3.3%
BUILDING MATERIALS - 0.8%
Armstrong World Industries, Inc. 38,200 $ 2,655
Dexter Corp. 925,200 29,491
Hume Industries BHD 6,798,000 42,799
Lilly Industrial Coatings, Inc. Class A 377,500 6,889
Masco Corp. 649,000 23,365
Nortek, Inc. (a) 12,500 250
Sherwin-Williams Co. 572,400 32,054
Southdown, Inc. 474,200 14,759
USG Corp. (a) 911,000 30,860
183,122
CONSTRUCTION - 0.3%
Bouygues Offshore SA sponsored ADR (a) 915,600 11,789
Fairfield Communities, Inc. (a) 120,200 2,975
Oakwood Homes Corp. 652,600 14,928
YTL Corp. BHD 7,076,250 38,106
67,798
ENGINEERING - 0.1%
Fluor Corp. 512,800 32,178
REAL ESTATE - 0.3%
Bandar Raya Development BHD 4,483,000 8,591
Grand Palais Management Co., LP (d) 398,400 -
New World Development Co. Ltd. 192,000 1,297
Rouse Co. (The) 2,232,876 70,894
80,782
REAL ESTATE INVESTMENT TRUSTS - 1.8%
Arden Realty Group, Inc. 883,800 24,526
Bay Apartment Communities, Inc. 19,400 699
Beacon Properties Corp. 1,295,300 47,440
Bradley Real Estate Trust (SBI) 253,000 4,554
Cali Realty Corp. 654,700 20,214
Capstead Mortgage Corp. 185,100 4,442
CenterPoint Properties Corp. 407,700 13,352
Crescent Real Estate Equities, Inc. 1,364,800 71,993
Duke Realty Investors, Inc. 440,643 16,965
Equity Residential Properties Trust (SBI) 191,500 7,899
Essex Property Trust, Inc. 87,900 2,582
Felcor Suite Hotels, Inc. 199,600 7,061
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
REAL ESTATE INVESTMENT TRUSTS - CONTINUED
First Industrial Realty Trust, Inc. 971,200 $ 29,500
Kimco Realty Corp. 4,900 171
LTC Properties, Inc. 572,200 10,586
Macerich Co. 704,000 18,392
Patriot American Hospitality, Inc. 727,300 31,365
Public Storage, Inc. 246,300 7,635
Reckson Associates Realty Corp. 252,400 10,664
Regency Realty Group 79,500 2,087
Sovran Self Storage, Inc. 9,100 284
Speiker Properties, Inc. 814,500 29,322
Starwood Lodging Trust combined certificate (SBI) 1,106,000 60,968
Vornado Realty Trust 14,600 767
Weeks Corp. 314,500 10,457
433,925
TOTAL CONSTRUCTION & REAL ESTATE 797,805
DURABLES - 3.5%
AUTOS, TIRES, & ACCESSORIES - 2.1%
Chrysler Corp. 3,178,900 104,904
Cross-Continent Auto Retailers, Inc. (a)(c) 450,800 9,410
Danaher Corp. 1,584,500 73,877
Federal-Mogul Corp. 47,600 1,047
Federal Signal Co. 77,700 2,010
General Motors Corp. 2,927,700 163,220
Johnson Controls, Inc. 199,200 16,509
Lear Corp. (a) 1,024,700 34,968
Lucas Varity PLC sponsored ADR (a) 148,248 5,633
O'Gara Co. (a)(c) 183,000 1,784
PACCAR, Inc. 79,400 5,399
Pep Boys-Manny, Moe & Jack 115,500 3,552
SPX Corp. (c) 1,106,700 42,885
Smith (A.O.) Corp. Class B 38,100 1,138
Snap-on Tools Corp. 310,600 11,065
Toyota Motor Corp. 210,000 6,031
United Auto Group, Inc. (a)(c) 524,800 13,514
496,946
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
CONSUMER DURABLES - 0.2%
Minnesota Mining & Manufacturing Co. 691,900 $ 57,341
CONSUMER ELECTRONICS - 0.2%
Harman International Industries, Inc. 131,800 7,332
Oyl Industries BHD 2,962,000 31,080
Sunbeam-Oster, Inc. 438,500 11,291
49,703
HOME FURNISHINGS - 0.3%
Furniture Brands International, Inc. (a) 1,253,500 17,549
Leggett & Platt, Inc. 492,000 17,036
Miller (Herman), Inc. 430,400 24,371
58,956
TEXTILES & APPAREL - 0.7%
Fruit of the Loom, Inc. Class A (a) 621,300 23,531
Jones Apparel Group, Inc. (a) 241,700 9,034
Liz Claiborne, Inc. 1,177,000 45,462
NIKE, Inc. Class B 410,700 24,539
Nine West Group, Inc. (a) 1,400 65
Reebok International Ltd. 1,036,300 43,525
Russell Corp. 200,100 5,953
Stride Rite Corp. 320,400 3,204
Timberland Co. Class A (a) 154,900 5,886
Unifi, Inc. 253,700 8,150
Warnaco Group, Inc. Class A 87,600 2,595
Westpoint Stevens, Inc. Class A (a) 65,900 1,969
173,913
TOTAL DURABLES 836,859
ENERGY - 23.4%
COAL - 0.0%
MAPCO, Inc. 63,600 2,162
ENERGY SERVICES - 10.3%
Atwood Oceanics, Inc. (a) 8,600 548
BJ Services Co. (a)(c) 1,946,547 99,274
Baker Hughes, Inc. 4,047,600 139,642
Carbo Ceramics, Inc. 311,900 6,550
Diamond Offshore Drilling, Inc. (a) 2,400,348 136,820
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Dresser Industries, Inc. 4,923,000 $ 152,613
ENSCO International, Inc. (a)(c) 5,602,700 271,731
Eni Spa 4,953,800 25,464
Falcon Drilling, Inc. (a) 1,101,200 43,222
Global Marine, Inc. (a) 3,554,200 73,305
Halliburton Co. 4,339,400 261,449
Helmerich & Payne, Inc. 614,600 32,036
Nabors Industries, Inc. (a)(c) 5,890,300 113,388
Newpark Resources, Inc. (a) 285,100 10,620
Noble Drilling Corp. (a) 2,938,800 58,409
Oceaneering International, Inc. (a) 138,800 2,203
Reading & Bates Corp. (a) 1,811,900 48,015
Smedvig:
AS (c) 1,623,900 35,645
AS, Series B (a) 621,100 12,952
Schlumberger Ltd. 5,255,800 524,923
Smith International, Inc. (a)(c) 3,993,100 179,190
Tidewater, Inc. 1,804,833 81,669
Transocean Offshore, Inc. 1,522,146 95,324
Varco International, Inc. (a)(c) 1,864,900 43,126
Western Atlas, Inc. (a) 168,100 11,914
2,460,032
OIL & GAS - 13.1%
Amerada Hess Corp. 115,200 6,667
American Exploration Co. (a)(c) 732,600 11,722
Amoco Corp. 136,600 10,996
Anadarko Petroleum Corp. 1,259,100 81,527
Ashland, Inc. 468,200 20,542
Atlantic Richfield Co. 179,500 23,784
Barrett Resources Corp. (a) 1,434,500 61,146
British Petroleum PLC ADR 1,670,788 236,208
Burlington Resources, Inc. 2,555,500 128,733
Camco International, Inc. (c) 2,264,300 104,441
Canadian Natural Resources Ltd. (a) 2,679,100 73,483
Canada Occidental Petroleum Ltd. 1,208,900 19,445
Chesapeake Energy Corp. (a) 935,400 52,032
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Chieftain International, Inc. (a) 190,400 $ 5,000
Coastal Corp. (The) 1,643,000 80,302
Cooper Cameron Corp. (a)(c) 1,974,200 151,026
Dorset Exploration Ltd. (a) 36,500 161
Enron Oil & Gas Co. 2,921,300 73,763
Enterprise Oil PLC 2,024,100 22,399
Exxon Corp. 407,000 39,886
Flores & Rucks, Inc. (a) 362,700 19,314
Forcenergy Gas Exploration, Inc. (a) 1,123,800 40,738
Imperial Oil Ltd. 40,700 1,915
Kerr-McGee Corp. 392,400 28,253
Louisiana Land & Exploration Co. 749,400 40,187
Monterey Resources, Inc. (a) 297,900 4,804
Murphy Oil Corp. 692,400 38,515
National-Oilwell, Inc. (a)(c) 316,100 9,720
Nationale Elf Aquitaine 49,700 4,523
Newfield Exploration Co. (a)(c) 2,486,400 64,646
Noble Affiliates, Inc. 1,422,400 68,097
Norcen Energy Resources Ltd. 186,700 4,140
Northstar Energy Corp. (a) 1,538,800 17,904
Occidental Petroleum Corp. 1,611,000 37,657
Oryx Energy Co. (a) 856,800 21,206
Parker & Parsley Petroleum Co. 656,100 24,112
Penn West Petroleum Ltd. (a) 261,400 2,670
Penn West Petroleum Ltd. (a)(e) 923,400 9,430
Pennzoil Co. 56,900 3,215
Petro-Canada 1,121,400 15,829
Petro-Canada 2nd installment receipt (g) 1,547,100 16,980
Petroleum Securities Australia Ltd. sponsored ADR (a) 865,400 19,688
Phillips Petroleum Co. 3,074,800 136,060
Poco Petroleums Ltd. (a) 228,200 2,181
Pogo Producing Co. (c) 1,899,800 89,766
Renaissance Energy Ltd. (a) 3,910,288 133,067
Rio Alto Exploration Ltd. (a) 31,900 232
Rio Alto Exploration Ltd. (a)(e) 549,700 3,990
Royal Dutch Petroleum Co. ADR 1,684,900 287,697
Santa Fe Energy Resources, Inc. (a) 3,970,700 55,093
Saga Petroleum AS Class B 444,400 6,968
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Stone Energy Corp. (a) 49,500 $ 1,479
Suncor, Inc. 390,100 16,135
Swift Energy Co. (a) 203,200 6,071
Texaco, Inc. 858,600 84,250
Tosco Corp. 1,038,100 82,140
Total SA:
Class B 681,873 55,443
sponsored ADR 157,800 6,351
USX-Marathon Group 1,135,700 27,115
Ultramar Diamond Shamrock Corp. 1,551,114 49,054
Union Pacific Resources Group, Inc. 1,296,200 37,914
United Meridian Corp. (a) (c) 2,306,900 119,382
Unocal Corp. 4,238,618 172,194
Valero Energy Corp. 38,300 1,096
Vastar Resources, Inc. 717,500 27,265
Vintage Petroleum, Inc. (c) 1,235,500 42,625
3,140,374
TOTAL ENERGY 5,602,568
FINANCE - 10.7%
BANKS - 3.7%
Bangkok Bank Ltd. (For. Reg.) 2,049,700 19,816
Bank International Indonesia PT (For. Reg.) 10,506,524 10,342
Bank of New York Co., Inc. 2,092,400 70,619
BankAmerica Corp. 1,868,800 186,413
Citicorp 366,000 37,698
Comerica, Inc. 20,000 1,048
Cullen Frost Bankers, Inc. 304,800 10,135
Fifth Third Bancorp 61,500 3,863
First Bank System, Inc. 1,617,700 110,408
First Empire State Corp. 7,300 2,102
Fleet Financial Group, Inc. 1,539,300 76,773
HSBC Holdings PLC 5,055,018 109,972
Hang Seng Bank Ltd. 3,471,000 42,183
Hong Leong Bank BHD 2,289,000 7,976
Krung Thai Bank Ltd. (For. Reg.) 2,259,300 4,404
North Fork Bancorporation, Inc. 829,000 29,533
Norwest Corp. 755,900 32,882
Regions Financial Corp. 36,700 1,897
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Texas Regional Bancshares, Inc. Class A (vtg) 106,800 $ 3,631
U.S. Bancorp 1,492,500 67,069
Westpac Banking Corp. 3,633,000 20,676
Zions Bancorp 253,400 26,354
875,794
CLOSED END INVESTMENT COMPANY - 0.2%
GT Global Developing Markets Fund 642,000 7,462
Morgan Stanley Emerging Markets Fund, Inc. 341,900 4,744
Morgan Stanley Asia-Pacific Fund, Inc. 1,608,500 15,683
Schroder Asian Growth Fund, Inc. 435,500 5,172
Templeton Dragon Fund, Inc. 742,500 11,973
45,034
CREDIT & OTHER FINANCE - 1.7%
American Express Co. 1,581,600 89,360
Associates First Capital Corp. 542,100 23,920
Beneficial Corp. 321,800 20,394
Finova Group, Inc. 148,000 9,509
First Chicago NBD Corp. 231,300 12,432
Green Tree Financial Corp. 110,900 4,284
Greenpoint Financial Corp. 1,593,600 75,497
Household International, Inc. 1,249,388 115,256
Hong Leong Credit BHD 2,931,000 18,453
Hong Leong Finance Ltd. (For. Reg.) 1,199,000 4,164
Transamerica Corp. 350,700 27,705
TA Enterprise BHD 7,017,000 9,280
410,254
FEDERAL SPONSORED CREDIT - 1.2%
Federal Home Loan Mortgage Corporation 1,015,900 111,875
Federal National Mortgage Association 4,887,300 182,052
Student Loan Marketing Association 29,600 2,757
296,684
INSURANCE - 2.6%
ACE Ltd. 90,300 5,429
Aetna, Inc. 751,000 60,080
Allmerica Financial Corp. 679,900 22,777
Allstate Corp. 2,658,200 153,843
American International Group, Inc. 1,216,600 131,697
Chubb Corp. (The) 76,600 4,117
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Conseco, Inc. 383,200 $ 24,429
General Re Corp. 57,200 9,023
ITT Hartford Group, Inc. 473,900 31,988
MMI Companies, Inc. 349,600 11,275
Marsh & McLennan Companies, Inc. 192,000 19,968
Mercury General Corp. 52,600 2,762
Mid Ocean Ltd. 257,400 13,514
Penncorp. Financial Group, Inc. 39,200 1,411
Progressive Corp. 127,300 8,577
Provident Companies, Inc. 48,500 2,346
Providian Corp. 179,000 9,196
Reinsurance Group of America, Inc. 19,600 924
Reliastar Financial Corp. 73,506 4,245
SunAmerica, Inc. 751,000 33,326
Travelers/Aetna Property Casualty Corp. Class A 82,100 2,904
Travelers Group, Inc. (The) 1,350,533 61,280
UNUM Corp. 75,300 5,440
USF&G Corp. 476,100 9,939
630,490
SAVINGS & LOANS - 1.1%
Ahmanson (H.F.) & Co. 263,300 8,557
Charter One Financial Corp. 202,215 8,493
Dime Bancorp., Inc. (a) 553,400 8,163
Glendale Federal Bank FSB (a) 1,874,800 43,589
Golden West Financial Corp. 1,111,500 70,163
Great Western Financial Corp. 967,500 28,058
Long Island Bancorp., Inc. 73,100 2,559
Sovereign Bancorp., Inc. 4,600 60
TCF Financial Corp. 259,600 11,293
Washington Mutual, Inc. 1,740,400 75,381
256,316
SECURITIES INDUSTRY - 0.2%
Guoco Group Ltd. 1,947,000 10,900
Peregrine Investments Holdings Ltd. 9,410,000 16,120
Salomon, Inc. 237,600 11,197
Schwab (Charles) Corp. 252,500 8,080
46,297
TOTAL FINANCE 2,560,869
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - 3.7%
DRUGS & PHARMACEUTICALS - 1.4%
Alkermes, Inc. (a) 72,900 $ 1,697
Alliance Pharmaceutical Corp. (a) 51,200 698
Andrx Corp. 15,900 256
Biogen, Inc. 123,000 4,766
Bristol-Myers Squibb Co. 632,700 68,806
Human Genome Sciences, Inc. (a) 93,800 3,822
Lilly (Eli) & Co. 194,300 14,184
Merck & Co., Inc. 150,100 11,895
Millennium Pharmaceuticals, Inc. (a) 148,100 2,573
Novartis AG (Reg.) 47,660 54,463
PerSeptive Biosystem, Inc. Class G (warrants) (a) 2,251 -
Pfizer, Inc. 246,500 20,429
Schering-Plough Corp. 286,400 18,544
Sepracor, Inc. (a) 1,165,300 19,373
Sequus Pharmaceuticals, Inc. (a) 50,000 800
Warner-Lambert Co. 1,479,900 110,993
333,299
MEDICAL EQUIPMENT & SUPPLIES - 0.8%
Acuson Corp. (a) 194,100 4,731
Boston Scientific Corp. (a) 547,900 32,874
Cardinal Health, Inc. 231,550 13,488
Datascope Corp. (a) 50,100 1,002
Guidant Corp. 27,300 1,556
InControl, Inc. (a) 367,600 2,941
Mallinckrodt, Inc. 696,800 30,746
Medtronic, Inc. 700,600 47,641
St. Jude Medical, Inc. (a) 639,700 27,267
U.S. Surgical Corp. 870,700 34,284
196,530
MEDICAL FACILITIES MANAGEMENT - 1.5%
Beverly Enterprises, Inc. (a) 662,600 8,448
Carematrix Corp. (a) 187,500 2,461
Columbia/HCA Healthcare Corp. 1,932,350 78,743
HEALTHSOUTH Rehabilitation Corp. (a) 3,227,100 124,647
Health Management Associates, Inc. Class A (a) 2,371,750 53,364
Integrated Health Services, Inc. 338,000 8,239
National Surgery Centers, Inc. (a) 86,200 3,276
NovaCare, Inc. (a) 373,400 4,107
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - CONTINUED
Oxford Health Plans, Inc. (a) 531,300 $ 31,114
PacifiCare Health Systems, Inc. Class B (a) 71,200 6,070
Quorum Health Group, Inc. (a) 72,200 2,148
Sunrise Assisted Living, Inc. (a) 492,600 13,731
Tenet Healthcare Corp. (a) 1,084,800 23,730
360,078
TOTAL HEALTH 889,907
HOLDING COMPANIES - 0.4%
Astra International PT (For. Reg.) 3,580,000 9,851
CINergy Corp. 296,600 9,899
Citic Pacific Ltd. Ord. 2,336,000 13,561
Malaysian Plantations BHD 14,164,000 17,947
Norfolk Southern Corp. 419,800 36,733
PartnerRe Ltd. 246,600 8,384
96,375
INDUSTRIAL MACHINERY & EQUIPMENT - 4.1%
ELECTRICAL EQUIPMENT - 1.4%
Alcatel Alsthom Compagnie Generale d'Electricite SA 419,200 33,666
Allen Group, Inc. (The) (a) 5,000 111
American Power Conversion Corp. (a) 667,500 18,189
AMETEK, Inc. 509,000 11,325
Common Development International Ltd. (a)(e) 604,900 5,405
Computer Products, Inc. (a) 20,400 398
Emerson Electric Co. 32,400 3,135
Hutchison Whampoa Ltd. Ord. 4,994,000 39,225
Loral Space & Communications Ltd. (a) 3,739,400 68,711
Roper Industries, Inc. 407,800 15,955
United Engineers BHD 2,356,000 21,270
Westinghouse Electric Corp. 5,994,000 119,131
336,521
INDUSTRIAL MACHINERY & EQUIPMENT - 2.0%
Case Corp. 1,855,900 101,146
Caterpillar, Inc. 1,597,500 120,212
Deere & Co. 59,200 2,405
Detroit Diesel Corp. (a) 382,000 8,786
Dover Corp. 50,400 2,533
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Harnischfeger Industries, Inc. 728,600 $ 35,064
Illinois Tool Works, Inc. 396,300 31,654
Ingersoll-Rand Co. 925,000 41,163
Kaydon Corp. (c) 1,113,500 52,474
Manitowoc Co., Inc. 249,200 10,093
New Holland NV (a)(c) 2,572,400 53,699
Parker-Hannifin Corp. 45,800 1,775
Thermo Fibergen, Inc. (a) 158,300 1,662
Thermo Fibergen, Inc. (rights) (a) 158,300 396
Thermo Fibertek, Inc. (a) 25,500 237
UCAR International, Inc. (a) 66,800 2,513
Van Der Horst Ltd. 2,573,000 10,755
476,567
POLLUTION CONTROL - 0.7%
Republic Industries, Inc. (a) 225,800 7,042
Sevenson Environmental Services, Inc. 168,800 3,081
USA Waste Services, Inc. (a) 3,045,670 97,081
United Waste Systems, Inc. (a) 1,614,900 55,512
162,716
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 975,804
MEDIA & LEISURE - 3.3%
BROADCASTING - 0.7%
American Radio Systems Corp. Class A (a) 423,900 11,551
Asia Satellite Telecommunications Holdings Ltd. (a) 905,800 2,102
Carlton Communications PLC 210,100 1,841
HSN, Inc. (a) 534,645 12,698
Infinity Broadcasting Corp. Class A 2,635,800 88,629
Jacor Communications, Inc. Class A (a) 462,000 12,647
Renaissance Communications Corp. (a) 647,800 23,159
Young Broadcasting, Inc. Class A (a) 420,400 12,297
164,924
ENTERTAINMENT - 0.2%
Disney (Walt) Co. 138,000 9,608
Multi-Purpose Holdings BHD 12,703,000 24,647
Regal Cinemas, Inc. (a) 45,600 1,402
Viacom, Inc.:
Class A (a) 186,700 6,441
Class B (non-vtg.) (a) 46,400 1,618
43,716
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LEISURE DURABLES & TOYS - 0.7%
Brunswick Corp. 53,700 $ 1,289
Champion Enterprises, Inc. (a) 1,538,400 29,999
Golden Bear Golf, Inc. (a) 103,500 1,164
Hasbro, Inc. 2,621,700 101,919
Mattel, Inc. 717,925 19,922
Nintendo Co. Ltd. Ord. 290,300 20,755
175,048
LODGING & GAMING - 0.5%
Circus Circus Enterprises, Inc. (a) 594,800 20,446
HFS, Inc. (a) 672,760 40,197
Hilton Hotels Corp. 487,400 12,733
Host Marriott Corp. (a) 2,075,800 33,213
US Franchise Services, Inc. Class A (a) 44,300 449
107,038
PUBLISHING - 1.1%
ACNielsen Corp. (a) 259,100 3,918
Cognizant Corp. (a) 785,300 25,915
Gannett Co., Inc. 501,400 37,542
Gibson Greetings, Inc. (a) 7,800 154
Harcourt General, Inc. 336,900 15,540
Knight-Ridder, Inc. 367,700 14,065
Meredith Corp. 488,600 25,774
New York Times Co. (The) Class A 1,460,000 55,480
Playboy Enterprises, Inc. Class B (a) 301,000 2,935
Times Mirror Co. Class A 1,257,300 62,551
Tribune Co. 239,800 18,914
262,788
RESTAURANTS - 0.1%
Landry's Seafood Restaurants, Inc. (a) 1,105,900 23,638
Papa John's International, Inc. (a) 101,200 3,416
Shoney's, Inc. (a) 51,700 362
Starbucks Corp. (a) 133,100 3,810
31,226
TOTAL MEDIA & LEISURE 784,740
NONDURABLES - 1.8%
AGRICULTURE - 0.1%
Pioneer Hi-Bred International, Inc. 363,600 25,452
BEVERAGES - 0.0%
Pete's Brewing Co. (a) 484,300 3,874
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
FOODS - 0.6%
Campbell Soup Co. 1,516,400 $ 121,691
Ralston Purina Group 393,100 28,844
Tyson Foods, Inc. 42,600 1,459
151,994
HOUSEHOLD PRODUCTS - 0.7%
Dial Corp. 1,591,700 23,478
Gillette Co. 1,225,800 95,306
Metro Pacific, Inc. Class B 129,651,000 32,043
Premark International, Inc. 355,300 7,905
158,732
TOBACCO - 0.4%
Consolidated Cigar Holdings, Inc. Class A (a) 200,400 4,960
Dimon, Inc. 38,200 883
Grupo Carso SA de CV Class A-1 9,781,000 51,713
Gudang Garam PT Perusahaan (For. Reg.) 1,727,500 7,460
Philip Morris Companies, Inc. 50,600 5,699
RJR Nabisco Holdings Corp. 100,200 3,407
Swisher International Group, Inc. Class A (c) 555,500 8,819
Universal Corp. 120,400 3,868
86,809
TOTAL NONDURABLES 426,861
PRECIOUS METALS - 1.6%
Agnico Eagle Mines Ltd. 333,200 4,678
Barrick Gold Corp. 370,200 10,600
Bre-X Minerals Ltd. (a) 4,393,800 69,552
Euro-Nevada Mining Ltd. 1,356,100 40,460
Euro-Nevada Mining Ltd. (e) 143,000 4,266
Franco Nevada Mining Corp. (c) 1,960,300 89,732
Getchell Gold Corp. (a) 1,004,756 38,558
Greenstone Resources Ltd. (a) 1,010,700 11,760
Indochina Goldfields Ltd. (a) 811,700 9,533
Indochina Goldfields Ltd. (a)(e) 948,400 11,139
Kinross Gold Corp. (a) 947,400 6,704
Newmont Mining Corp. 1,840,000 82,340
TVI Pacific, Inc. (a)(e) 1,769,700 1,640
380,962
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - 6.3%
APPAREL STORES - 1.2%
Abercrombie & Fitch Co. (a) 39,700 $ 656
Baby Superstore, Inc. (a) 586,100 14,066
Cato Corp. Class A (c) 1,189,200 5,946
Charming Shoppes, Inc. (a)(c) 9,979,500 50,521
Footstar, Inc. (a) 1,051,037 26,145
Gap, Inc. 307,700 9,269
Goody's Family Clothing (a)(c) 1,535,300 27,443
Limited, Inc. (The) 270,704 4,974
Payless ShoeSource, Inc. (a) 1,032,132 38,705
Ross Stores, Inc. 4,600 230
Saks Holdings, Inc. (a) 98,000 2,646
TJX Companies, Inc. 2,061,100 97,645
278,246
DRUG STORES - 0.9%
Arbor Drugs, Inc. 457,800 7,954
CVS Corp. 3,461,400 143,216
Revco (D.S.), Inc. (a) 1,725,400 63,840
Rite Aid Corp. 22,800 906
215,916
GENERAL MERCHANDISE STORES - 1.2%
Dayton Hudson Corp. 889,100 34,897
Family Dollar Stores, Inc. 84,400 1,720
Federated Department Stores, Inc. (a) 913,700 31,180
Kohls Corp. (a) 566,200 22,223
MacFrugals Bargains Closeouts, Inc. (a) 125,700 3,284
Mazel Stores, Inc. (a)(c) 111,400 2,507
Price/Costco, Inc. (a) 2,148,100 53,971
Stein Mart, Inc. (a) 968,200 19,606
Woolworth Corp. (a) 5,992,600 131,088
300,476
GROCERY STORES - 1.6%
Ahold NV 154,951 9,683
American Stores Co. 307,600 12,573
Asda Group PLC 7,588,900 15,990
Dominick's Supermarkets, Inc. (a)(c) 870,100 18,925
Food Lion, Inc.:
Class A 8,662,800 84,733
Class B 1,161,400 11,759
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
GROCERY STORES - CONTINUED
Giant Food, Inc. Class A 486,400 $ 16,781
Loblaw Companies Ltd. 693,500 7,158
Performance Food Group Co. (a) 11,350 176
Provigo, Inc. (a) 132,100 534
Quality Food Centers, Inc. (a) 118,900 4,013
Richfood Holdings, Inc. Class A (c) 3,297,950 79,975
Safeway, Inc. (a) 2,501,100 106,922
Weis Markets, Inc. 206,300 6,576
375,798
RETAIL & WHOLESALE, MISCELLANEOUS - 1.4%
Bulgari Spa 45,800 929
Circuit City Stores, Inc. 1,454,100 43,805
Home Depot, Inc. (The) 2,973,100 149,027
Lowe's Companies, Inc. 430,800 15,293
Staples, Inc. (a) 1,470,200 26,555
Toys "R" Us, Inc. (a) 2,903,600 87,108
U.S. Office Products Co. (a) 620,500 21,175
343,892
TOTAL RETAIL & WHOLESALE 1,514,328
SERVICES - 1.2%
ADVERTISING - 0.2%
Interpublic Group of Companies, Inc. 81,700 3,881
Omnicom Group, Inc. 580,000 26,535
Snyder Communications, Inc. (a)(c) 788,700 21,295
51,711
EDUCATIONAL SERVICES - 0.0%
Education Management Corp. (a)(c) 338,000 7,098
LEASING & RENTAL - 0.0%
Ryder Systems, Inc. 118,400 3,330
Team Rental Group, Inc. Class A (a) 40,900 660
3,990
PRINTING - 0.3%
ASM Lithography Holding NV (a) 461,500 22,989
Deluxe Corp. 123,400 4,041
Harland (John H.) Co. 907,900 29,961
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - CONTINUED
PRINTING - CONTINUED
Reynolds & Reynolds Co. Class A 27,400 $ 712
Standard Register Co. 12,000 390
Valassis Communications, Inc. (a) 73,700 1,557
59,650
SERVICES - 0.7%
APAC Teleservices, Inc. (a) 2,276,300 87,351
CDI Corp. (a) 4,600 131
Ecolab, Inc. 1,082,900 40,744
Orion Network Systems, Inc. (a) 18,300 236
Registry, Inc. 24,700 1,139
Robert Half International, Inc. (a) 616,800 21,203
Signature Resorts, Inc. (a) 152,200 5,365
Telespectrum Worldwide, Inc. (a)(c) 889,500 14,121
Teletech Holdings, Inc. (a) 8,300 216
Zebra Technologies Corp. Class A (a) 65,400 1,529
172,035
TOTAL SERVICES 294,484
TECHNOLOGY - 13.8%
COMMUNICATIONS EQUIPMENT - 1.3%
ADC Telecommunications, Inc. (a) 293,800 9,145
Ascend Communications, Inc. (a) 237,300 14,742
Aspect Telecommunications Corp. (a) 117,300 7,449
Cisco Systems, Inc. (a) 756,400 48,126
Dynatech Corp. (a) 733,800 32,471
Ericsson (L.M.) Telephone Co. Class B ADR 384,100 11,595
Lucent Technologies, Inc. 1,536,200 71,049
Nokia Corp. AB sponsored ADR 255,100 14,700
Northern Telecom Ltd. 440,500 27,378
Tellabs, Inc. (a) 538,000 20,242
3Com Corp. (a) 606,900 44,531
U.S. Robotics Corp. (a) 29,700 2,138
303,566
COMPUTER SERVICES & SOFTWARE - 2.0%
America Online, Inc. (a) 261,700 8,700
Autodesk, Inc. 50,000 1,400
Automatic Data Processing, Inc. 1,428,400 61,243
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
BMC Software, Inc. (a) 32,200 $ 1,332
Borland International, Inc. (a) 50,200 273
CBT Group PLC sponsored ADR 18,200 987
CUC International, Inc. (a) 704,600 16,734
CACI International, Inc. Class A (a) 374,900 7,873
Ceridian Corp. (a) 1,016,500 41,168
Computer Sciences Corp. (a) 435,900 35,798
DST Systems, Inc. 198,400 6,225
Electronic Arts, Inc. (a) 152,900 4,577
Equifax, Inc. 1,549,600 47,457
First Data Corp. 392,400 14,323
Intuit (a) 472,000 14,868
Keane, Inc. (a) 764,000 24,257
McAfee Associates, Inc. (a) 124,200 5,465
Microsoft Corp. (a) 912,100 75,362
Midway Games, Inc. (a)(c) 483,900 9,799
Ontrack Data International, Inc. (a)(c) 350,700 5,261
Open Market, Inc. (a) 258,700 3,492
Oracle Corp. (a) 775,000 32,356
Parametric Technology Corp. (a) 428,200 21,999
Paychex, Inc. 115,200 5,926
Scopus Technology, Inc. (a) 72,700 3,381
SunGard Data Systems, Inc. (a) 468,300 18,498
Viisage Technology, Inc. (a) 51,000 740
469,494
COMPUTERS & OFFICE EQUIPMENT - 5.4%
Adaptec, Inc. (a) 657,600 26,304
Amdahl Corp. (a) 1,287,700 15,613
Applied Magnetics Corp. (a)(c) 1,356,128 40,514
Bay Networks, Inc. (a) 4,045,500 84,450
Bell & Howell Co. (a) 558,200 13,257
Comdisco, Inc. 181,500 5,763
Compaq Computer Corp. (a) 1,349,500 100,200
Dell Computer Corp. (a) 141,200 7,500
Diebold, Inc. 811,900 51,048
Digital Equipment Corp. (a) 815,300 29,657
EMC Corp. (a) 4,908,600 162,597
Gateway 2000, Inc. (a) 40,300 2,159
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Hewlett-Packard Co. 322,400 $ 16,201
Ingram Micro, Inc. Class A (a) 68,100 1,566
International Business Machines Corp. 2,356,500 355,832
Kronos, Inc. (a)(c) 789,400 25,261
Lexmark International Group, Inc. (a) 1,087,700 30,048
Pitney Bowes, Inc. 1,059,100 57,721
Procom Technology, Inc. (c) 500,900 4,759
Quantum Corp. (a) 437,500 12,523
Seagate Technology (a) 3,978,400 157,147
Sequent Computer Systems, Inc. (a) 150,500 2,671
Silicon Graphics, Inc. (a) 1,694,700 43,215
Symbol Technologies, Inc. (a) 96,000 4,248
Tech Data Corp. (a) 18,700 512
Trident Microsystems, Inc. (a) 114,800 1,937
Western Digital Corp. (a) 794,700 45,199
1,297,902
ELECTRONIC INSTRUMENTS - 0.5%
Applied Materials, Inc. (a) 223,400 8,028
Perkin-Elmer Corp. 1,380,000 81,248
Silicon Valley Group, Inc. (a) 27,300 549
Teradyne, Inc. (a) 367,700 8,963
Thermo Electron Corp. 18,500 763
Waters Corp. (a) 842,100 25,579
125,130
ELECTRONICS - 4.2%
AVX Corp. 88,700 1,907
Altera Corp. (a) 528,400 38,408
Arrow Electronics, Inc. (a) 135,200 7,233
Atmel Corp. (a) 586,900 19,441
Avnet, Inc. 324,600 18,908
Chips & Technologies, Inc. (a) 824,800 15,053
Cirrus Logic, Inc. (a) 644,400 9,988
Griffon Corp. (a) 366,600 4,491
Integrated Device Technology, Inc. (a) 3,366,000 45,862
Intel Corp. 2,643,400 346,120
KEMET Corp. (a) 337,100 7,838
Kent Electronics Corp. (a) 819,600 21,105
Lattice Semiconductor Corp. (a) 781,900 35,967
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Linear Technology Corp. 283,100 $ 12,421
Maxim Integrated Products, Inc. (a) 267,700 11,578
Microchip Technology, Inc. (a) 506,700 25,776
Micron Technology, Inc. 657,300 19,144
Motorola, Inc. 554,400 34,026
National Semiconductor Corp. (a) 2,081,200 50,729
SGS Thomson Microelectronics NV (a) 149,900 10,493
S3, Inc. (a) 72,300 1,175
Sanmina Corp. (a) 309,000 17,459
Solectron Corp. (a) 334,100 17,833
Storage Technology Corp. (a) 2,754,500 131,183
Texas Instruments, Inc. 908,500 57,917
Thomas & Betts Corp. 439,800 19,516
VLSI Technology, Inc. (a) 210,700 5,030
Xilinx, Inc. (a) 340,400 12,531
Zero Corp. (c) 635,600 12,712
Zilog, Inc. (a) 100,500 2,626
1,014,470
PHOTOGRAPHIC EQUIPMENT - 0.4%
Eastman Kodak Co. 791,000 63,478
Imation Corp. (a) 988,900 27,813
91,291
TOTAL TECHNOLOGY 3,301,853
TRANSPORTATION - 1.3%
AIR TRANSPORTATION - 0.1%
AMR Corp. (a) 125,400 11,051
Continental Airlines, Inc. Class B (a) 400,800 11,323
Delta Air Lines, Inc. 4,000 284
Northwest Airlines Corp. Class A (a) 114,000 4,460
UAL Corp. (a) 27,300 1,706
28,824
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
RAILROADS - 1.0%
Bombardier, Inc. Class B 893,200 $ 16,485
Burlington Northern Santa Fe Corp. 534,600 46,176
CSX Corp. 510,300 21,560
Canadian Pacific Ltd. 2,477,200 65,144
Conrail, Inc. 245,300 24,438
Tranz Rail Holdings Ltd. sponsored ADR (a) 276,900 4,898
Trinity Industries, Inc. 50,100 1,879
Wisconsin Central Transportation Corp. (a) 1,549,700 61,406
241,986
SHIPPING - 0.0%
Kirby Corp. (a) 93,900 1,855
TRUCKING & FREIGHT - 0.2%
Air Express International Corp. 198,000 6,386
Consolidated Freightways, Inc. 237,000 5,273
Expeditors International of Washington, Inc. 312,400 7,185
USFreightways Corp. 123,600 3,391
Werner Enterprises, Inc. 31,200 566
Yellow Corp. (a) 1,064,300 15,299
38,100
TOTAL TRANSPORTATION 310,765
UTILITIES - 2.9%
CELLULAR - 0.1%
McLeod, Inc. (a) 366,500 9,346
Palmer Wireless, Inc. (a) 334,900 3,516
12,862
ELECTRIC UTILITY - 0.6%
Allegheny Power System, Inc. 160,300 4,869
American Electric Power Co., Inc. 920,500 37,856
Consolidated Edison Co. of New York, Inc. 66,400 1,942
DQE, Inc. 45,800 1,328
DPL, Inc. 158,500 3,883
Entergy Corp. 370,400 10,279
FPL Group, Inc. 332,300 15,286
GPU, Inc. 17,900 602
KU Energy Corp. 173,700 5,211
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
ELECTRIC UTILITY - CONTINUED
Korea Electric Power Corp. 633,400 $ 18,440
National Grid Co. PLC 11,560,400 38,616
Pinnacle West Capital Corp. 209,200 6,642
Public Service Co. of Colorado 50,300 1,955
Sevillana de Electricidad 180,555 2,050
Tucson Electric Power Co. (a) 141,300 2,349
151,308
GAS - 0.7%
Noram Energy Corp. 197,249 3,032
Consolidated Natural Gas Co. 50,200 2,774
Enron Corp. 1,843,400 79,497
Italgas Spa 2,624,000 10,980
ONEOK, Inc. 85,100 2,553
Sonat, Inc. 1,238,600 63,788
Tejas Gas Corp. (a) 17,500 833
163,457
TELEPHONE SERVICES - 1.5%
BCE, Inc. 1,646,300 78,421
British Telecommunications PLC Ord. 1,459,900 9,878
Cincinnati Bell, Inc. 330,000 20,336
MCI Communications Corp. 1,752,200 57,275
MFS Communications, Inc. 659,000 35,916
Smartalk Teleservices, Inc. (a)(c) 785,700 13,357
Teleport Communications Group, Inc. Class A (a) 298,100 9,092
WorldCom, Inc. (a) 5,080,600 132,413
356,688
WATER - 0.0%
Yorkshire Water PLC Ord. 188,600 2,278
TOTAL UTILITIES 686,593
TOTAL COMMON STOCKS
(Cost $17,029,868) 21,096,253
CONVERTIBLE PREFERRED STOCKS - 0.1%
SHARES VALUE (NOTE 1)
(000S)
ENERGY - 0.0%
OIL & GAS - 0.0%
Tosco Financing Trust $2.875 (e) 112,900 $ 5,800
Ultramar Diamond Shamrock Corp. $2.50 (e) 160,800 9,929
15,729
RETAIL & WHOLESALE - 0.1%
APPAREL STORES - 0.1%
TJX Companies, Inc., Series E, $7.00 73,500 19,248
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $28,139) 34,977
CORPORATE BONDS - 0.3%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) (B) AMOUNT (000S)
ENERGY - 0.1%
ENERGY SERVICES - 0.0%
Nabors Industries, Inc. 5%, 5/1/06 Ba2 $ 9,476 11,655
OIL & GAS - 0.1%
Pogo Producing Co.
5 1/2%, 6/15/06 (e) B2 13,900 17,549
TOTAL ENERGY 29,204
HEALTH - 0.1%
MEDICAL FACILITIES MANAGEMENT - 0.1%
NovaCare, Inc. 5 1/2%, 1/15/00 B1 20,870 18,731
MEDIA & LEISURE - 0.0%
BROADCASTING - 0.0%
Home Shopping Network, Inc.
5 7/8%, 3/1/06 (e) B- 4,152 4,463
RETAIL & WHOLESALE - 0.0%
APPAREL STORES - 0.0%
Charming Shoppes, Inc. 7 1/2%, 7/15/06 B2 4,850 4,705
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) (B) AMOUNT (000S) (000S)
TECHNOLOGY - 0.1%
ELECTRONICS - 0.1%
National Semiconductor Corp.
6 1/2%, 10/1/02 (e) Ba2 $ 15,440 $ 15,208
TOTAL CORPORATE BONDS
(Cost $64,181) 72,311
U.S. TREASURY OBLIGATIONS - 4.7%
7 1/4%, 2/ 15/23 Aaa 33,100 34,559
6 1/4%, 8/15/23 Aaa 175,500 164,531
7 1/2%, 11/15/24 Aaa 90,400 98,875
7 5/8%, 2/15/25 Aaa 425,110 472,204
6 7/8%, 8/15/25 Aaa 96,000 97,890
6%, 2/15/26 Aaa 127,000 115,590
6 3/4%, 8/15/26 Aaa 144,000 145,080
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,127,385) 1,128,729
CASH EQUIVALENTS - 6.7%
MATURITY
AMOUNT (000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account dated 12/31/96 due 1/2/97:
at 6.75% $ 96,888 96,852
at 6.87% 5,974 5,972
SHARES
Taxable Central Cash Fund (h) 1,495,546,935 1,495,547
TOTAL CASH EQUIVALENTS
(Cost $1,598,371) 1,598,371
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $19,847,944) $ 23,930,641
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
LEGEND
1. Non-income producing
2. Standard & Poor's credit ratings are used in the absence of a rating by
Moody's Investors Service, Inc.
3. Affiliated company (see Note 7 of Notes to Financial Statements).
4. 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 $ -
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 $88,819,000 or 0.4% of net
assets.
6. Purchased on an installment basis. Market value reflects only those
payments made through December 31, 1996. The remaining installment
aggregating CAD 9,092,000 is due January 31, 1997.
7. Purchased on an installment basis. Market value reflects only those
payments made through December 31, 1996. The remaining installment
aggregating CAD 6,575,000 is due March 24, 1997.
8. At period end, the seven-day yield on the Taxable Central Cash Fund was
5.57%. The yield refers to the income earned by investing in the fund over
the seven-day period, expressed as an annual percentage.
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 88.6%
Canada 3.5
Netherlands 1.6
United Kingdom 1.4
Malaysia 1.3
Hong Kong 1.0
Others (individually less than 1%) 2.6
TOTAL 100.0%
INCOME TAX INFORMATION
At December 31, 1996, the aggregate cost of investment securities for
income tax purposes was $19,917,895,000. Net unrealized appreciation
aggregated $4,012,746,000, of which $4,256,683,000 related to appreciated
investment securities and $243,937,000 related to depreciated investment
securities.
The fund hereby designates approximately $170,122,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) DECEMBER 31, 1996
ASSETS
Investment in securities, at value (including repurchase $ 23,930,641
agreements of $102,824) (cost $19,847,944) -
See accompanying schedule
Cash 269
Receivable for investments sold 183,428
Receivable for fund shares sold 93,739
Dividends receivable 21,369
Interest receivable 34,596
Other receivables 779
U.S. Treasury obligations, at value, held as collateral for 73,735
securities loaned
TOTAL ASSETS 24,338,556
LIABILITIES
Payable for investments purchased $ 53,743
Payable for fund shares redeemed 61,889
Distributions payable 10,419
Accrued management fee 10,325
Other payables and accrued expenses 10,938
Collateral on securities loaned, at value 362,418
TOTAL LIABILITIES 509,732
NET ASSETS $ 23,828,824
Net Assets consist of:
Paid in capital $ 19,245,068
Undistributed net investment income 40,761
Accumulated undistributed net realized gain (loss) on 460,301
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 4,082,694
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 565,372 shares outstanding $ 23,828,824
NET ASSET VALUE and redemption price per share $42.15
($23,828,824 (divided by) 565,372 shares)
Maximum offering price per share (100/97.00 of $42.15) $43.45
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED DECEMBER 31, 1996
INVESTMENT INCOME $ 240,776
Dividends (including $4,538 received from affiliated
issuers)
Interest (including income on securities loaned of 160,627
$3,687)
TOTAL INCOME 401,403
EXPENSES
Management fee $ 117,554
Basic fee
Performance adjustment (6,130)
Transfer agent fees 43,399
Accounting and security lending fees 954
Non-interested trustees' compensation 105
Custodian fees and expenses 2,053
Registration fees 2,903
Audit 157
Legal 105
Miscellaneous 161
Total expenses before reductions 161,261
Expense reductions (7,538) 153,723
NET INVESTMENT INCOME 247,680
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain of 1,292,420
$25,075 on sales of investments in affiliated issuers)
Foreign currency transactions 8,809 1,301,229
Change in net unrealized appreciation (depreciation) on:
Investment securities 2,383,026
Assets and liabilities in foreign currencies (5,789) 2,377,237
NET GAIN (LOSS) 3,678,466
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 3,926,146
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1996 1995
INCREASE (DECREASE) IN NET ASSETS
Operations $ 247,680 $ 50,900
Net investment income
Net realized gain (loss) 1,301,229 2,153,716
Change in net unrealized appreciation (depreciation) 2,377,237 1,261,176
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,926,146 3,465,792
FROM OPERATIONS
Distributions to shareholders (205,408) (32,239)
From net investment income
From net realized gain (1,597,799) (1,121,208)
TOTAL DISTRIBUTIONS (1,803,207) (1,153,447)
Share transactions 9,573,613 5,506,303
Net proceeds from sales of shares
Reinvestment of distributions 1,776,511 1,134,123
Cost of shares redeemed (4,502,101) (2,789,091)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 6,848,023 3,851,335
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,970,962 6,163,680
NET ASSETS
Beginning of period 14,857,862 8,694,182
End of period (including under (over) distribution $ 23,828,824 $ 14,857,862
of net investment income of $40,761 and
$(2,312), respectively)
OTHER INFORMATION
Shares
Sold 242,915 150,801
Issued in reinvestment of distributions 44,832 30,067
Redeemed (113,133) (77,218)
Net increase (decrease) 174,614 103,650
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED DECEMBER 31,
1996 1995 1994 1993 D 1992
SELECTED PER-SHARE DATA
Net asset value, $ 38.02 $ 30.28 $ 30.84 $ 27.47 $ 25.60
beginning of period
Income from
Investment Operations
Net investment income .46 .03 .06 .14 .32 C
Net realized and 7.50 10.93 (.40) 5.66 3.67
unrealized gain (loss)
Total from investment 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 gain (3.45) (3.13) (.22) (2.25) (1.92)
Total distributions (3.83) (3.22) (.22) (2.43) (2.12)
Net asset value, $ 42.15 $ 38.02 $ 30.28 $ 30.84 $ 27.47
end of period
TOTAL RETURN A, B 21.94% 36.28% (1.12)% 21.43% 15.89%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 23,829 $ 14,858 $ 8,694 $ 6,208 $ 1,986
(in millions)
Ratio of expenses to .83% .98% 1.03% 1.08% .87%
average net assets
Ratio of expenses to .79% E .96% E 1.00% 1.06% .87%
average net assets after E E
expense reductions
Ratio of net investment 1.28% .44% .59% .46% 1.19%
income to average
net assets
Portfolio turnover rate 159% 223% 235% 255% 297%
Average commission rate F $ .0358
</TABLE>
A 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).
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
D 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.
E 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).
F 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.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1996
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 and foreign currency options, 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 the fair market value of
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
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 that
mature in 60 days or less from the date of purchase for U.S. Treasury or
Federal Agency obligations.
2. OPERATING POLICIES -
CONTINUED
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.
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. 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, and may be utilized by the fund as an
additional cash management option. Dividends 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.
OPTIONS. The fund may use options to manage its exposure to the stock
market and to fluctuations in interest rates. Writing puts and buying calls
tend to increase the fund's exposure to the underlying instrument. 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.
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.
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 or 0% of net
assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $33,068,172,000 and $27,714,201,000, respectively, of which U.S.
government and government agency obligations aggregated $1,422,672,000 and
$1,157,703,000, 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 .20%
of the fund's average net assets over the performance period) based on the
fund's investment performance as compared to the appropriate index over a
specified period of time. For the period, the management fee was equivalent
to an annual rate of .57% 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 $16,029,000 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 annual rate of .22%
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 $10,768,000 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 $351,120,000 and
$362,418,000, 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
$6,567,000 under this arrangement.
In addition, the fund has entered into arrangements with its 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 custodian and transfer agent fees were
reduced by $37,000 and $934,000, respectively, 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 Exploration Co. - - - 11,722
American Radio Systems Corp.
Class A 19,453 17,158 - -
Applied Magnetics Corp. 3,943 3,138 - 40,514
BDM International, Inc. 2,089 3,799 - -
BJ Services Co. 1,732 - - 99,274
Bell & Howell Co. 167 2,191 - -
CACI International, Inc.
Class A - 2,513 - -
C A E Industries Ltd. 243 1,272 139 -
Cambrex Corp. 2,031 5,442 58 20,706
Camco International, Inc. 9,256 10,103 445 104,441
Cato Corp. Class A 1,721 8,260 237 5,946
Central Garden & Pet Co. 810 1,470 - -
Charming Shoppes, Inc. 30,589 - - 50,521
Computer Products, Inc. 1,644 4,540 - -
Cooper Cameron Corp. 32,296 1,517 - 151,026
Cross Continent Auto Retailers, Inc. 5,062 - - 9,410
CyCare Systems, Inc. - 5,031 - -
Designer Holdings Ltd. 2,173 3,348 - -
Diamond Shamrock R&M, Inc. 6,171 5,554 704 -
Dominick's Supermarkets, Inc. 9,833 - - 18,925
Dynatech Corp. 2,801 7,471 - -
EZ Communications, Inc. Class A - 3,962 - -
Education Management Corp. 939 - - 7,098
Emmis Broadcasting Corp. Class A - 6,664 - -
ENSCO International, Inc. 62,249 3,405 - 271,731
Falcon Drilling, Inc. 8,106 2,580 - -
FileNet Corp. 30,281 37,885 - -
Franco Nevada Mining Corp. 19,462 - - 89,732
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS
PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
Gleason Corp. $ - $ 1,134 $ 34 $ -
Glendale Federal Bank Federal
Savings Bank 1,508 5,132 - -
Goody's Family Clothing - 346 - 27,443
K lll Communications Corp. 1,795 2,145 - -
Kaydon Corp. 11,828 97 282 52,474
Kronos, Inc. 4,698 1,407 - 25,261
Landry's Seafood Restaurants, Inc. 2,847 3,257 - -
Loehmans Inc. - 5,021 - -
Malaysian Plantations BHD 158 - - -
Mazel Stores, Inc. - - - 2,507
Metro Pacific Corp., Inc.
Class B 448 2,688 - -
Midway Games, Inc. 395 1,059 - 9,799
Nabors Industries, Inc. 24,975 6,080 - 113,388
National-Oilwell, Inc. 649 - - 9,720
New Holland NV 3,543 - - 53,699
Newfield Exploration Co. 15,106 702 - 64,646
O'Gara Co. - - - 1,784
Ontrack Data International, Inc. 2,759 - - 5,261
Pogo Producing 8,521 1,157 58 89,766
Procom Technology, Inc. 2,250 - - 4,759
Progress Software Corp. - 7,088 - -
Richfood Holdings, Inc. Class A 17,825 5,031 327 79,975
Rohr Industries, Inc. - 620 - -
Rykoff-Sexton, Inc. - 6,736 - -
SPX Corp. 10,854 509 198 42,885
Smartalk Teleservices, Inc. 6,869 - - 13,357
Sepracor, Inc. 1,649 7,702 - -
Sevenson Environmental
Services, Inc. - 2,060 47 -
Showboat, Inc. 12,116 17,974 52 -
Smedvig AS 13,585 12,588 558 35,645
Smith International, Inc. 7,073 2,883 - 179,190
Snyder Communications, Inc. 10,896 2,798 - 21,295
Sonat Offshore Drilling, Inc. 17,417 18,367 96 -
Special Devices, Inc. - 1,984 - -
Swisher International Group, Inc.
Class A 1,725 - - 8,819
Tech-Sym Corp. 1,101 5,946 - -
Tel-Save Holdings, Inc. - 1,518 - -
Telespectrum Worldwide, Inc. 3,952 1,415 - 14,121
Tidewater, Inc. 34,010 34,970 1,303 -
Tongkah Holdings BHD - - - 14,729
Truevision, Inc. - 1,251 - -
Uniroyal Chemical Corp. 742 - - -
United Auto Group, Inc. 389 - - 13,514
United Meridian Corp. 1,247 2,064 - 119,382
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS
PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
Vanstar Corp. $ 2,735 $ 2,320 $ - $ -
Varco International, Inc. 4,617 - - 43,126
Vintage Petroleum, Inc. 905 - - 42,625
Zero Corp. 411 - - 12,712
Zycon Corp. - 2,594 - -
TOTALS $ 484,649 $ 310,044 $ 4,538 $ 1,982,928
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Fidelity Contrafund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Contrafund, including the schedule of portfolio investments, as of
December 31, 1996, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and
financial highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1996 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Contrafund as of December 31, 1996, the results of its
operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended, in conformity with
generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 3, 1997
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
* INDEPENDENT TRUSTEES
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
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress 1-800-544-5555
SM
AUTOMATED LINE FOR QUICKEST SERVICE
FIDELITY CONTRAFUND
82 DEVONSHIRE STREET
BOSTON, MASSACHUSETTS 02109
TO THE SHAREHOLDERS:
The Board of Trustees of Fidelity Contrafund voted to pay on February 10,
1997, to shareholders of record at the opening of business on February 7,
1997, a distribution of $0.71 derived from capital gains realized from
sales of portfolio securities.
In the opinion of management, regardless of whether you took payments in
cash or in additional shares, the distribution will be reportable for tax
purposes for the year 1997. You will be notified at a later date as to the
tax treatment of this distribution.
If your account is a Fidelity prototype retirement plan such as an
Individual Retirement Account (IRA), a Keogh Plan, a 403(b), or a qualified
pension or profit sharing plan, the above information is provided for
informational purposes only and is not reportable for tax purposes in 1997.
FIDELITY CONTRAFUND
February 7, 1997
