(2_FIDELITY_LOGOS)FIDELITY
CAPITAL APPRECIATION
FUND
SEMIANNUAL REPORT
APRIL 30, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
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 last six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 16 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 20 Footnotes 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. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first few months of 1994 were an unsettling time for many investors.
After three years of a nearly perfect environment for stock market
investing, stock prices fell in March and April. Investors disagree about
whether this decline represents only a short-term correction or signals the
beginning of a longer bear market. One can collect statistics to support
either opinion, but of course, nobody knows for sure what will happen to
stock prices in the months ahead.
We do know, however, that market declines are a normal part of stock market
investing. We have historically seen corrections of 10% or more every two
years. That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful stock market
investors in every market cycle.
First, take a long-term approach when investing in stocks and stock funds.
If you can afford to leave your money invested through the market's
inevitable ups and downs, you will greatly reduce your vulnerability to any
single decline. Over time, stock prices have gone up - and have
significantly outperformed other types of investments and stayed ahead of
inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.
We look forward to hearing from 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. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1994 PAST 6 PAST 1 PAST 5 LIFE OF
MONTHS YEAR YEARS FUND
Capital Appreciation 3.57% 14.18% 62.25% 184.32%
Capital Appreciation (incl. 3% sales 0.47% 10.75% 57.38% 175.79%
charge)
S&P 500(Registered trademark) -2.31% 5.32% 70.64% 131.00%
Average Capital Appreciation Fund -3.09% 10.84% 74.26% 119.35%
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
since the fund began on November 26, 1986. For example, if you invested
$1,000 in a fund that had a 5% return, over the past year, you would end up
with $1,050. You can compare the fund's returns to the performance of the
Standard & Poor's 500 Composite Stock Price Index - a common proxy for
the U.S. stock market. You can also compare them to the average capital
appreciation fund, which reflects the performance of over 152 capital
appreciation funds with similar objectives tracked by Lipper Analytical
Services, Inc. Both benchmarks include reinvested dividends and capital
gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1994 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Capital Appreciation 14.18% 10.16% 15.09%
Capital Appreciation (incl. 3% sales charge) 10.75% 9.49% 14.62%
S&P 500(Registered trademark) 5.32% 11.28% 11.92%
Average Capital Appreciation Fund 10.84% 11.32% 10.56%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Date Capital ApprS&P 500
11/26/86 9700.00 10000.00
11/30/86 9544.80 10046.93
12/31/86 9244.10 9790.74
01/31/87 10805.80 11109.55
02/28/87 11610.90 11548.38
03/31/87 12163.80 11882.13
04/30/87 12280.20 11776.38
05/31/87 12338.40 11878.83
06/30/87 12852.50 12478.71
07/31/87 14501.50 13111.38
08/31/87 14278.40 13600.44
09/30/87 14520.90 13302.59
10/31/87 10543.90 10437.21
11/30/87 10505.10 9577.18
12/31/87 11024.67 10306.01
01/31/88 11498.05 10739.89
02/29/88 12507.95 11240.37
03/31/88 12928.74 10893.04
04/30/88 13360.04 11013.95
05/31/88 13496.80 11109.78
06/30/88 14233.18 11619.71
07/31/88 14170.06 11575.56
08/31/88 14012.27 11181.99
09/30/88 14548.77 11658.34
10/31/88 14895.92 11982.44
11/30/88 14738.13 11811.10
12/31/88 15171.96 12017.79
01/31/89 15915.17 12897.49
02/28/89 15745.29 12576.34
03/31/89 16244.30 12869.37
04/30/89 16998.39 13537.29
05/31/89 17646.86 14085.55
06/30/89 18050.83 14005.27
07/31/89 19220.20 15269.94
08/31/89 19294.61 15569.23
09/30/89 19231.25 15505.40
10/31/89 18432.61 15145.67
11/30/89 18805.30 15454.65
12/31/89 19254.58 15825.56
01/31/90 18374.64 14763.66
02/28/90 18617.78 14954.11
03/31/90 18756.72 15350.40
04/30/90 18096.76 14966.64
05/31/90 19057.75 16425.88
06/30/90 18884.08 16314.19
07/31/90 18525.15 16261.98
08/31/90 16591.59 14791.90
09/30/90 15375.88 14071.53
10/31/90 14878.01 14011.03
11/30/90 15653.75 14916.14
12/31/90 16234.18 15332.30
01/31/91 16914.52 16000.79
02/28/91 18228.26 17144.84
03/31/91 18662.27 17559.75
04/30/91 18732.65 17601.89
05/31/91 18978.98 18362.29
06/30/91 18415.94 17521.30
07/31/91 19119.74 18337.79
08/31/91 19108.01 18772.40
09/30/91 18521.51 18458.90
10/31/91 18157.89 18706.25
11/30/91 17078.73 17952.39
12/31/91 17856.63 20006.14
01/31/92 18898.51 19634.03
02/29/92 19679.92 19889.27
03/31/92 19636.51 19501.43
04/30/92 20200.86 20074.77
05/31/92 20446.86 20173.14
06/30/92 20432.39 19872.56
07/31/92 20533.68 20685.34
08/31/92 19708.86 20261.30
09/30/92 19737.80 20500.38
10/31/92 19853.57 20572.13
11/30/92 20070.63 21273.64
12/31/92 20779.52 21535.31
01/31/93 21361.41 21716.20
02/28/93 21820.89 22011.54
03/31/93 23049.37 22475.99
04/30/93 24155.00 21932.07
05/31/93 24799.96 22519.85
06/30/93 24876.74 22585.15
07/31/93 25414.20 22494.81
08/31/93 25752.03 23347.37
09/30/93 25153.14 23167.59
10/31/93 26627.32 23647.16
11/30/93 26535.19 23422.51
12/31/93 27722.81 23705.93
01/31/94 29230.20 24511.93
02/28/94 28601.28 23847.65
03/31/94 27411.65 22807.90
04/30/94 27579.21 23099.84
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Capital Appreciation Fund on November 26, 1986, and paid a 3% sales charge.
As the chart shows, by April 30, 1994, the value of your investment would
have grown to $27,579 - a 175.79% increase on your initial investment. For
comparison, look at how the S&P 500 did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$23,100 - a 131.00% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Tom Sweeney, Portfolio Manager of Fidelity
Capital Appreciation Fund
Q. TOM, HOW DID THE FUND PERFORM?
A. The past few months were rocky, but the fund still managed to outperform
most of its peers. It had a total return of 3.57% for the six months ended
April 30, 1994. The average capital appreciation fund tracked by Lipper
Analytical Services, Inc. returned -3.09% during the same period. For the
12 months ended April 30, the fund returned 14.18%, compared to 10.84% for
the Lipper average.
Q. WHAT'S YOUR TAKE ON THE STOCK MARKET DOWNTURN THAT BEGAN IN FEBRUARY AND
CONTINUED THROUGH APRIL?
A. It's hard to say exactly why the market fell. We do know rising interest
rates appeared to trigger the sell-off. But by the time the Federal Reserve
Board raised short-term rates in early February, the stock market seemed
like a spring that had been stretched too far. By most historical measures
such as dividend yields and price-to-earnings ratios, stocks were very
highly valued and ripe for a correction. While no investor is comfortable
watching stock prices head south, out of downturns arise opportunities. I
used the correction as a buying opportunity.
Q. WHERE DID YOU BEGIN?
A. Mostly, I increased the fund's stake in stocks it already owned.
However, several are new names to the fund's top 10 investments from six
months ago. These newer companies have common traits that I look for in all
of my stocks. Broadly speaking, I'm attracted to stocks that investors have
beaten up and left for dead, but have business prospects in place that
signal a turnaround. Borden is a good example. It's stock price has fallen
70% from where it was just a few years ago. But, late last year, new
management came up with a plan to sell off unprofitable segments, keep the
good parts, and pay down debt. The plan appears to be working; the company
went from an operating loss in the fourth quarter of 1993 to an operating
profit in the first quarter of 1994.
Q. ANY OTHER EXAMPLES?
A. Sure, I'm thinking of the fund's investment in Centerior Energy. For the
past two years, Gulf States Utilities was the only electric utility in the
fund. Late last year, Gulf States agreed to merge with another utility,
Entergy, whose stock valuation - its price relative to other measures such
as earnings - wasn't attractive enough to make me want to keep it in the
fund. So I sold the fund's stake in Gulf States, which had doubled since I
bought it. Meanwhile, Centerior's stock price had fallen 50% from its high
a year earlier, and I felt it had hit bottom. So, shortly after selling one
utility, I bought a replacement. I'm optimistic about a rebound for
Centerior because the company doesn't need to add any new plants until
after the year 2000. That should allow Centerior to put cash back into the
business and pay down debt.
Q. AND UAL - THE PARENT COMPANY OF UNITED AIRLINES - HAD BECOME THE FUND'S
TOP INVESTMENT BY THE END OF APRIL . . .
A. Even though United's stock lost ground over the past six months, I
increased the fund's stake after the market correction because I believed
in the underlying story. Historically, major airlines have added capacity -
bought new planes - as fast as they've gained passengers. But the majors
haven't made money in such a long time that they can no longer afford to
add capacity. Yet, I believe that passenger traffic should rise an
additional 5% to 7% in 1994. Those dynamics should help boost United's
stock within the next year or two.
Q. WHAT WERE THE FUND'S OTHER BIG WINNERS DURING THE PERIOD?
A. Paper and forest products companies - 12.5% of the fund at the end of
April - had a solid recovery. A strengthening economy helped these
companies raise the prices of their products and still grow earnings. U.S.
paper stocks such as Bowater - the largest newsprint company in America -
as well as Canadian paper names such as Abitibi Price, Avenor and Domtar,
all helped the fund's performance.
Q. WERE THERE ANY REGRETS?
A. There are always a few. Perhaps the biggest was another paper company,
Boise Cascade. Boise hadn't cut costs as effectively and made as many
internal improvements as other paper companies when times were tough.
Consequently, its stock didn't rebound as well as the others when the
economy picked up. Also, I wish my timing had been better on Borden and
Centerior. The stock prices of both have fallen a bit since I bought them.
But I still believe very strongly in their prospects going forward.
Q. THE FUND'S FOREIGN INVESTMENTS HAVE DROPPED FROM 44.4% OF THE FUND SIX
MONTHS AGO TO 36.9% ON APRIL 30. WHY?
A. Two reasons. When the fund gained assets early in 1994, I put most of
the money to work in U.S. stocks because that's where I found the best
values. That decreased the percentage of the fund invested overseas. Also,
I took profits on some foreign stocks that performed well over the past
year. Swiss bank Safra Republic - the fund's top investment six months ago
- - - - is a good example. As interest rates fell in Europe, Safra's profit
margins rose, and so did the stock. I still like the stock's long-term
prospects. I've just cut back a bit on the fund's investment.
Q. DID YOU MAKE ANY NEW INVESTMENTS OVERSEAS?
A. The only sizable foreign stock purchase I made during the period, I sold
a short time later. But in that brief span, Montedison - an Italian
chemical company - helped the fund immensely. The stock was down and out
last winter when I bought 100 million shares at 55 cents a share. Shortly
after, a major change in the Italian government sent stocks there soaring.
I had planned to hold onto the fund's stake in Montedison, but after it
went up 60% in just a few months, I decided I'd better take my profits and
go home.
Q. HOW DO YOU SEE THE NEXT SIX MONTHS SHAPING UP?
A. I think what interest rates do in the next few months is key. If they
settle down, the broad market should be okay since corporate earnings are
healthy. However, if rates continue to rise at a good clip, it may spell
trouble. Every day that rates rise, a few people will transfer assets out
of stocks and into safer bond or money market investments. On the other
hand, if a company is doing well because of specific steps it has taken to
boost earnings, and not solely because the economy is strengthening, that
stock should weather potential downturns better than most others. The
market may be choppy in the months ahead. But if I've chosen the right
stocks, the fund will be well positioned for long-term growth.
FUND FACTS
GOAL: to increase the value
of the fund's shares by
investing mainly in common
stocks
START DATE: November 26, 1986
SIZE: As of April 30, 1994,
more than $1.8 billion
MANAGER: Tom Sweeney,
since November 1986;
manager, Fidelity Select
Paper and Forest Products
Portfolio, 1986; joined
Fidelity in 1985
(checkmark)
TOM SWEENEY ON
"BOTTOM-FISHING" THE MARKET:
"I search for stocks of
distressed companies that
most other investors have
given up on. However, there
must be solid evidence that
the company is well
positioned to recover. Three
telltale signs are good cash
flow, tax write-offs and stock
purchases by a company's
officers and directors. First, I
look at the stock's price
compared to the amount of
cash flow the company
generates after capital
expenditures. A healthy cash
flow means a company has
money to pay down debt and
reinvest in the business.
Second, companies that have
recently generated operating
losses can write off those
losses. That may mean they
won't have to pay taxes for a
while, which can increase
their future cash flow. Finally, I
like to see company
executives buying their own
stock. If the officers and
directors who know the
company better than you or I
are choosing their stock over
any other investment, it sends
me a good sign."
(bullet) Over the past six months,
the fund has increased its
stake in financial stocks, from
8.2% to 13.7%. Recent buys
include CNA Financial, a
large insurance company, and
Astoria Financial and GP
Financial, which are two large
New York-based savings and
loans.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF APRIL 30, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
UAL Corp. 8.0 4.2
Borden, Inc. 5.7 -
Brierley Investments Ltd. 4.9 6.2
Centerior Energy Corp. 4.6 -
Lonrho Ltd. Ord. 4.5 6.0
CNA Financial Corp. 4.0 -
Loews Corp. 3.7 -
Southern Pacific Rail Corp. 3.7 3.2
Safra Republic Holding S.A. Ord. 3.4 6.8
British Petroleum PLC ADR 2.7 3.7
TOP FIVE INDUSTRIES AS OF APRIL 30, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Transportation 17.5 17.4
Basic Industries 16.9 17.1
Finance 13.7 8.2
Conglomerates 13.2 12.3
Nondurables 9.8 9.2
ASSET ALLOCATION
AS OF APRIL 30, 1994* AS OF OCTOBER 31, 1993**
Row: 1, Col: 1, Value: 6.8
Row: 1, Col: 2, Value: 1.0
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 4, Value: 43.0
Row: 1, Col: 1, Value: 11.8
Row: 1, Col: 2, Value: 1.0
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 4, Value: 47.9
Stocks 93.0%
Bonds 0.2%
Short-term
Investments 6.8%
FOREIGN
INVESTMENTS 36.9%
Stocks 87.9%
Bonds 0.3%
Short-term
Investments 11.8%
FOREIGN
INVESTMENTS 44.4%
*
**
INVESTMENTS APRIL 30, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
COMMON STOCKS - 92.8%
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - 16.9%
CHEMICALS & PLASTICS - 1.1%
Cytec Industries, Inc. (b) 1,250,000 $ 17,968 23282010
IMC Fertilizer Group, Inc. (a) 100,000 3,760 44966910
21,728
METALS & MINING - 3.3%
Alcan Aluminum Ltd. 200,000 4,195 01371610
Alumax, Inc. 200,000 4,775 02219710
Cameco, Inc. 2,500,000 42,263 13321L10
Energy Resources of Australia Ltd. (a) 2,056,600 1,927 29299592
Maxco, Inc. (a)(b) 435,000 4,350 57772310
Reynolds Metals Co. 150,000 6,300 76176310
63,810
PAPER & FOREST PRODUCTS - 12.5%
Abitibi-Price, Inc. 2,800,000 33,160 00368010
Alliance Forest Products (c) 1,000,000 12,301 01859J92
Avenor, Inc. 1,000,000 15,278 05356K10
Avenor, Inc. installment receipt (e) 4,000,000 26,759 05356K20
Boise Cascade Corp. 1,980,000 42,570 09738310
Bowater, Inc. (b) 2,190,000 45,991 10218310
Champion International Corp. 500,000 15,250 15852510
Domtar, Inc. (a) 6,750,000 36,613 25756110
Stone Consolidated Corp. (a) 1,000,000 12,204 86158K10
240,126
TOTAL BASIC INDUSTRIES 325,664
CONGLOMERATES - 13.2%
Berkshire Hathaway, Inc. (a) 10 161 08467010
Brierley Investments Ltd. (d) 125,000 94,549 10901410
Loews Corp. 800,000 71,600 54042410
Lonrho Ltd. Ord. 40,950,000 87,620 54337410
253,930
CONSTRUCTION & REAL ESTATE - 0.7%
CONSTRUCTION - 0.6%
Paranapanema SA PN (d) 660,000 11,653 69999822
REAL ESTATE - 0.1%
Major Realty Corp. (a)(b) 683,900 1,154 56084010
TOTAL CONSTRUCTION & REAL ESTATE 12,807
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - 0.0%
AUTOS, TIRES, & ACCESSORIES - 0.0%
Oakhurst Capital, Inc. (a) 115,000 $ 316 67220210
ENERGY - 4.7%
ENERGY SERVICES - 2.0%
Mosvold Shipping AS 'B' 640,600 3,755 62099294
Smedvig AS 500,000 5,721 79799892
Smedvig AS (rights) (a) 496,100 17 79799895
Transocean Drilling AS 3,500,000 21,002 93499492
Wilrig AS (a) 2,050,000 8,153 97199092
38,648
OIL & GAS - 2.7%
British Petroleum PLC ADR 750,000 52,500 11088940
TOTAL ENERGY 91,148
FINANCE - 13.7%
BANKS - 3.4%
Safra Republic Holdings S.A. Ord. 725,000 64,888 78510099
INSURANCE - 7.4%
Abtrust Lloyds Insurance Trust PLC 2,800,000 3,484 00199B22
Acceptance Insurance Co., Inc. (b) 700,000 8,750 00430810
Acceptance Insurance Co., Inc. (warrants) (a) 300,000 863 00430812
Angerstein Underwriting Trust PLC (a) 2,400,000 3,715 03499A22
CLM Insurance Fund PLC 100,000 150 18899322
CNA Financial Corp. (a) 1,225,000 77,787 12611710
Delian Lloyds Investment Trust PLC 4,909,200 7,450 24699622
Finsbury Underwriting Investment Trust PLC 700,000 1,094 31799J22
HCG Lloyds Investment Trust PLC 4,950,000 7,361 40499722
Hiscox Select Insurance Fund PLC 250,000 361 46699B22
London Insurance Market Investment Trust PLC 11,600,000 17,426 54199F22
Masthead Insurance Underwriting PLC 1,923,800 2,919 57699F22
New London Capital PLC 5,000,000 7,588 64699822
Premium Trust PLC 1,050,000 1,275 74099G22
Syndicate Capital Trust PLC 2,250,000 3,244 87199B22
143,467
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SAVINGS & LOANS - 2.9%
Astoria Financial Corp. (a)(b) 800,000 $ 23,200 04626510
GP Financial Corp. (a) 1,700,000 32,300 36193510
55,500
TOTAL FINANCE 263,855
HEALTH - 4.2%
DRUGS & PHARMACEUTICALS - 4.2%
American Cyanamid Co. 750,000 35,250 02532110
Pfizer, Inc. 100,000 5,900 71708110
Schering-Plough Corp. 100,000 6,100 80660510
Warner-Lambert Co. 500,000 33,938 93448810
81,188
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
ELECTRICAL EQUIPMENT - 0.5%
Genlyte Group, Inc. (a)(b) 1,280,000 5,760 37230210
Westinghouse Electric Corp. 400,000 4,650 96040210
10,410
MEDIA & LEISURE - 1.2%
BROADCASTING - 0.2%
BET Holdings, Inc. Class A (a) 200,000 3,275 08658510
LODGING & GAMING - 0.8%
Four Seasons Hotels, Inc. 1,175,000 10,410 35100E10
Kahler Corp. (b) 325,000 3,331 48283610
Sonesta International Hotel Corp. Class A (a)(b) 122,800 982 83543840
14,723
RESTAURANTS - 0.2%
Foodmaker, Inc. (a) 282,600 2,155 34483920
ShowBiz Pizza Time, Inc. (b) 319,000 3,190 82538830
5,345
TOTAL MEDIA & LEISURE 23,343
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - 9.8%
AGRICULTURE - 0.5%
Alico, Inc. (b) 465,000 $ 8,893 01623010
FOODS - 8.3%
Borden, Inc. (b) 8,525,000 110,825 09959910
IBP, Inc. 1,730,000 44,980 44922310
Seaboard Corp. (a) 30,850 5,430 81154310
161,235
TOBACCO - 1.0%
RJR Nabisco Holdings Corp. (a) 3,000,000 19,125 74960K10
TOTAL NONDURABLES 189,253
PRECIOUS METALS - 1.5%
Coeur d'Alene Mines Corp. (b) 1,500,000 28,313 19210810
RETAIL & WHOLESALE - 3.4%
APPAREL STORES - 0.3%
Petrie Stores Corp. 188,300 4,802 71643410
GENERAL MERCHANDISE STORES - 1.8%
Neiman-Marcus Group, Inc. (b) 2,310,000 35,516 64020410
GROCERY STORES - 0.4%
Associated British Foods Ltd. Ord. (a) 850,000 7,701 04551910
RETAIL & WHOLESALE, MISCELLANEOUS - 0.9%
Hancock Fabrics, Inc. (b) 2,040,000 17,085 40990010
TOTAL RETAIL & WHOLESALE 65,104
SERVICES - 0.8%
PRINTING - 0.7%
CSS Industries, Inc. (a)(b) 820,000 14,248 12590610
SERVICES - 0.1%
Hallwood Group, Inc. (a)(b) 590,000 1,696 40636430
TOTAL SERVICES 15,944
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - 0.1%
ELECTRONICS - 0.1%
Esquire Radio & Electronics, Inc. (b) 48,000 $ 2,315 29667710
TRANSPORTATION - 17.5%
AIR TRANSPORTATION - 8.0%
UAL Corp. (a) 1,200,000 154,950 90254910
RAILROADS - 3.7%
Southern Pacific Rail Corp. (a) 3,200,000 70,400 84358410
SHIPPING - 5.8%
BT Shipping Ltd. ADR (a)(b) 875,000 2,625 05600720
Bergesen Group:
Class A 1,000,000 22,188 08399010
Class B 1,000,000 22,188 08399011
Bona Shipholdings Ltd. 500,000 4,688 09776C92
Bonheur A/S 500,000 9,838 09799399
First Olsen Tankers Ltd. 2,000,000 15,350 33599522
Frontline (a) 2,600,000 6,997 35999F22
Ganger Rolf 500,000 9,698 36472010
International Shipholding Corp. (a)(b) 500,000 10,437 46032120
Wah Kwong Shipping Holdings Ltd 6,000,000 8,544 93056692
112,553
TOTAL TRANSPORTATION 337,903
UTILITIES - 4.6%
ELECTRIC UTILITY - 4.6%
Centerior Energy Corp. (b) 8,000,000 89,000 15188310
TOTAL COMMON STOCKS
(Cost $1,714,405) 1,790,493
PREFERRED STOCKS - 0.2%
BASIC INDUSTRIES - 0.2%
METALS & MINING - 0.2%
Freeport McMoran Copper & Gold:
pfd. B (a) 81,500 3,036 35671D60
pfd. C 7,100 264 35671D88
TOTAL PREFERRED STOCKS
(Cost $3,591) 3,300
NONCONVERTIBLE BONDS - 0.2%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (A) (000S)
(000S)
SERVICES - 0.2%
Hallwood Group, Inc. collateralized 7%, 7/31/00
(Cost $5,030) $ 4,350 $ 2,828 406364AE
REPURCHASE AGREEMENTS - 6.8%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.56%
dated 4/29/94 due 5/2/94, $ 132,052 132,013
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,855,039) $ 1,928,634
LEGEND
(a) Non-income producing
(b) Affiliated company (see Note 8 of Notes to Financial Statements).
(c) 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 $12,301,000 or 0.7% of net
assets.
(d) Shares in thousands.
(e) Market value reflects the payment of the first installment. Additional
equal payments of $26,000,000 CAD are payable in September 1994 and 1995,
respectively.
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
OTHER INFORMATION
Distribution of investments by country, as a percentage of total value of
investment in securities, is as follows:
United States 63.1%
United Kingdom 10.6
Canada 10.0
Norway 6.1
New Zealand 4.9
Luxembourg 3.4
Others (individually less than 1%) 1.9
TOTAL 100.0%
INCOME TAX INFORMATION
At April 30, 1994, the aggregate cost of investment securities for income
tax purposes was $1,855,552,000. Net unrealized appreciation aggregated
$73,082,000 of which $196,757,000 related to appreciated investment
securities and $123,675,000 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) APRIL 30, 1994 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 1,928,634
agreements of $132,013) (cost $1,855,039) (Notes 1
and 2) - See accompanying schedule
Cash 68
Receivable for investments sold 30,562
Receivable for fund shares sold 10,060
Dividends receivable 2,600
Interest receivable 67
Other receivables 548
TOTAL ASSETS 1,972,539
LIABILITIES
Payable for investments purchased $ 78,170
Payable for fund shares redeemed 7,480
Accrued management fee 1,372
Other payables and accrued expenses 990
Collateral on securities loaned, at value (Note 5) 8,551
TOTAL LIABILITIES 96,563
NET ASSETS $ 1,875,976
Net Assets consist of (Note 1):
Paid in capital $ 1,702,427
Undistributed net investment income 8,283
Accumulated undistributed net realized gain (loss) on 91,671
investments
Net unrealized appreciation (depreciation) on investment 73,595
securities
NET ASSETS, for 113,938 shares outstanding $ 1,875,976
NET ASSET VALUE and redemption price per share $16.46
($1,875,976 (divided by) 113,938 shares)
Maximum offering price per share (100/97.00 of $16.46) $16.97
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED APRIL 30, 1994 (UNAUDITED)
INVESTMENT INCOME $ 13,685
Dividends (including $2,986 received from affiliated
issuers) (Note 8)
Interest (including security lending fees of $18) (Note 5) 4,094
TOTAL INCOME 17,779
EXPENSES
Management fee (Note 4) $ 5,494
Basic fee
Performance adjustment 1,202
Transfer agent fees (Note 4) 2,800
Accounting and security lending fees (Note 4) 334
Non-interested trustees' compensation 5
Custodian fees and expenses 217
Registration fees 389
Audit 34
Legal 10
Interest (Note 6) 9
Miscellaneous 10
Total expenses before reductions 10,504
Expense reductions (Note 7) (134) 10,370
NET INVESTMENT INCOME 7,409
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1, 2 AND 3)
Net realized gain (loss) on:
Investment securities (including realized loss of 108,265
$375 on sales of investments in affiliated issuers)
(Note 8)
Foreign currency contracts (1,501) 106,764
Change in net unrealized appreciation (depreciation) on:
Investment securities (85,234)
Foreign currency contracts 1,501 (83,733)
NET GAIN (LOSS) 23,031
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 30,440
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED APRIL 30, OCTOBER 31,
1994 1993
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 7,409 $ 10,594
Net investment income
Net realized gain (loss) on investments 106,764 95,486
Change in net unrealized appreciation (depreciation) (83,733) 219,970
on investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 30,440 326,050
FROM OPERATIONS
Distributions to shareholders: (7,683) (12,598)
From net investment income
From net realized gain (121,428) (44,848)
TOTAL DISTRIBUTIONS (129,111) (57,446)
Share transactions 1,136,409 544,501
Net proceeds from sales of shares
Reinvestment of distributions 126,725 56,373
Cost of shares redeemed (579,315) (587,940)
Net increase (decrease) in net assets resulting from 683,819 12,934
share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 585,148 281,538
NET ASSETS
Beginning of period 1,290,828 1,009,290
End of period (including undistributed net investment $ 1,875,976 $ 1,290,828
income of $8,283 and $51,357, respectively)
OTHER INFORMATION
Shares
Sold 66,108 35,222
Issued in reinvestment of distributions 7,502 4,195
Redeemed (34,117) (38,541)
Net increase (decrease) 39,493 876
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED OCTOBER 31,
ENDED
APRIL 30,1994+
(UNAUDITED)
1993 1992 1991 1990 1989
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE
DATA
Net asset value, $ 17.34 $ 13.72 $ 15.48 $ 12.85 $ 17.31 $ 14.16
beginning of period
Income from
Investment
Operations
Net investment .07 .14 .26 .85(double dagger) .32 .28
income
Net realized and .56 4.30 .73 1.96 (3.37) 3.05
unrealized gain
(loss) on
investments
Total from investment .63 4.44 .99 2.81 (3.05) 3.33
operations
Less Distributions
From net investment (.10) (.18) (.62) (.17) (.24) (.13)
income
From net realized (1.41) (.64) (2.13) (.01) (1.17) (.05)
gain
Total distributions (1.51) (.82) (2.75) (.18) (1.41) (.18)
Net asset value, end of $ 16.46 $ 17.34 $ 13.72 $ 15.48 $ 12.85 $ 17.31
period
TOTAL RETURN(dagger) 3.57% 34.12% 9.34% 22.05% (19.28) 23.74%
%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 1,876 $ 1,291 $ 1,009 $ 1,110 $ 1,354 $ 2,155
period (in millions)
Ratio of expenses to 1.24%* .86% .71% .83% 1.14% 1.14%
average net assets
(diamond)
Ratio of expenses to 1.26%* .87% .71% .83% 1.14% 1.14%
average net assets
before expense
reductions (diamond)
Ratio of net investment .89%* .93% 1.63% 3.87% 1.61% 1.84%
income to average
net assets
Portfolio turnover rate 107%* 120% 99% 72% 56% 73%
</TABLE>
* ANNUALIZED
(dagger) TOTAL RETURNS DO NOT INCLUDE ONE TIME SALES CHARGE AND FOR PERIODS
OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
(double dagger) INVESTMENT INCOME PER SHARE INCLUDES A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.43 PER SHARE.
(diamond) SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS.
+ NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Capital Appreciation Fund (the fund) is a fund of Fidelity
Capital Trust (the trust) and is authorized to issue an unlimited number of
shares. The trust 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. 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 for which exchange quotations are not
readily available (and in certain cases debt securities which trade on an
exchange), are valued primarily using dealer-supplied valuations or at
their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practicable to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes where recovery of such taxes is not assured.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions, market discount 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.
Undistributed net investment income 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.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective November
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of October 31, 1993 have been reclassified to
reflect an increase in paid in capital of $185,189,000, a decrease in
undistributed net investment income of $42,800,000 and a decrease in
accumulated net realized gain on investments of $142,389,000.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,421,173,000 and $770,820,000, respectively.
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.31% to .52% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .30%.
The basic fee is subject to a performance adjustment (up to a maximum of +
or - .20%) based on the fund's investment performance as compared to the
appropriate index over a specified period of time. For the period, the
management fee was equivalent to an annualized rate of .80% of average net
assets after the performance adjustment.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of FMR,
is the general distributor of the fund. FDC is paid a 3% sales charge on
sales of shares of the fund. Prior to October 12, 1990, FDC was paid a 2%
sales charge and a 1% deferred sales charge. Shares purchased prior to
October 12, 1990, are subject to the deferred sales charge upon redemption.
For the period, FDC received sales charges and deferred sales charges of
$3,736,000 and $172,000, respectively, on sales of shares of the fund.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES -
CONTINUED
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 $942,000 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 $8,079,000 and
$8,551,000, 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 periods for
which loans were outstanding amounted to $42,648,000 and $25,577,000,
respectively. The weighted average interest rate was 4.125%.
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
$134,000 under this arrangement.
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 with companies which are or
were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND MARKET
COST COST INCOME VALUE
AFFILIATE
Acceptance Insurance Co., Inc. $ - $ - $ - $ 8,750
Alico, Inc. - 90 - 8,893
Astoria Financial Corp. (a) 3,719 - - 23,200
BT Shipping Ltd. ADR (a) - - - 2,625
Borden, Inc. 18,451 - 110,825
Bowater, Inc. 13,643 9,748 603 45,991
CSS Industries, Inc. (a) 4 1,734 - 14,248
Centerior Energy Corp. 7,290 - 1,600 89,000
Coeur d'Alene Mines Corp. - - 225 28,313
Cytec Industries, Inc. 4,577 - - 17,968
Esquire Radio & Electronics, Inc. - - - 2,315
Genlyte Group, Inc. (a) - - - 5,760
Hallwood Group, Inc. (a) - 144 - 1,696
Hancock Fabrics, Inc. 6,573 - 264 17,085
International Shipholding
Corp. (a) - - 50 10,437
Kahler Corp. - 49 13 3,331
Major Realty Corp. (a) - - - 1,154
Maxco, Inc. (a) - 149 - 4,350
Neiman-Marcus Group, Inc. 4,980 426 213 35,516
ShowBiz Pizza Time, Inc. 1,363 12,240 - -
Sonesta International Hotel
Corp. Class A (a) - - 18 982
TOTALS $ 60,600 $ 24,580 $ 2,986 $ 432,439
(f) Non-income producing
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Thomas P. Sweeney, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
Robert H. Morrison, Manager,
Security Transactions
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Fidelity Fifty Fund
Growth Company Fund
Low-Priced Stock Fund
Magellan(Registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Growth Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
