(2_FIDELITY_LOGOS)FIDELITY
CAPITAL APPRECIATION
FUND
ANNUAL REPORT
OCTOBER 31, 1995
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 16 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 20 Notes to the financial statements.
REPORT OF INDEPENDENT 26 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 27
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 RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although the markets have been fairly positive this year, no one can
predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
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, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in 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 OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Capital Appreciation 15.42% 120.98% 238.94%
Capital Appreciation (incl. 3% sales charge) 11.96% 114.35% 228.77%
S&P 500(registered trademark) 26.44% 121.65% 210.56%
Average Capital Appreciation Fund 21.09% 135.99% 176.15%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or since the fund
started on November 26, 1986. 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 Composite Index of 500 Stocks - a common proxy for the
U.S. stock market. To measure how the fund's performance stacked up against
its peers, you can compare it to the average capital appreciation fund,
which reflects the performance of 150 capital appreciation funds with
similar objectives tracked by Lipper Analytical Services over the past 12
months. Both benchmarks include reinvested dividends and capital gains, if
any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Capital Appreciation 15.42% 17.18% 14.63%
Capital Appreciation (incl. 3% sales charge) 11.96% 16.47% 14.24%
S&P 500(registered trademark) 26.44% 17.26% 13.52%
Average Capital Appreciation Fund 21.09% 18.05% 11.24%
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
Capital AppreStandard &
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 11024.66 10306.01
01/31/88 11498.05 10739.89
02/29/88 12507.95 11240.37
03/31/88 12928.73 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 14012.26 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 15171.97 12017.79
01/31/89 15915.17 12897.49
02/28/89 15745.30 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 19231.24 15505.40
10/31/89 18432.60 15145.67
11/30/89 18805.30 15454.65
12/31/89 19254.57 15825.56
01/31/90 18374.62 14763.66
02/28/90 18617.77 14954.11
03/31/90 18756.70 15350.40
04/30/90 18096.75 14966.64
05/31/90 19057.74 16425.88
06/30/90 18884.07 16314.19
07/31/90 18525.14 16261.98
08/31/90 16591.58 14791.90
09/30/90 15375.87 14071.53
10/31/90 14878.00 14011.03
11/30/90 15653.74 14916.14
12/31/90 16234.17 15332.30
01/31/91 16914.50 16000.79
02/28/91 18228.25 17144.84
03/31/91 18662.26 17559.75
04/30/91 18732.64 17601.89
05/31/91 18978.97 18362.29
06/30/91 18415.93 17521.30
07/31/91 19119.72 18337.79
08/31/91 19107.99 18772.40
09/30/91 18521.50 18458.90
10/31/91 18157.87 18706.25
11/30/91 17078.72 17952.39
12/31/91 17856.62 20006.14
01/31/92 18898.50 19634.03
02/29/92 19679.91 19889.27
03/31/92 19636.50 19501.43
04/30/92 20200.85 20074.77
05/31/92 20446.85 20173.14
06/30/92 20432.38 19872.56
07/31/92 20533.67 20685.34
08/31/92 19708.85 20261.30
09/30/92 19737.79 20500.38
10/31/92 19853.56 20572.13
11/30/92 20070.61 21273.64
12/31/92 20779.52 21535.31
01/31/93 21361.41 21716.20
02/28/93 21820.88 22011.54
03/31/93 23049.36 22475.99
04/30/93 24154.99 21932.07
05/31/93 24799.94 22519.85
06/30/93 24876.72 22585.15
07/31/93 25414.18 22494.81
08/31/93 25752.01 23347.37
09/30/93 25153.13 23167.59
10/31/93 26627.31 23647.16
11/30/93 26535.17 23422.51
12/31/93 27722.80 23705.93
01/31/94 29230.18 24511.93
02/28/94 28601.27 23847.65
03/31/94 27411.64 22807.90
04/30/94 27579.19 23099.84
05/31/94 27797.01 23478.67
06/30/94 26875.47 22903.45
07/31/94 27461.91 23654.68
08/31/94 28551.00 24624.52
09/30/94 28651.53 24021.22
10/31/94 28483.98 24561.70
11/30/94 28668.29 23667.16
12/31/94 28421.43 24018.15
01/31/95 29275.37 24640.94
02/28/95 29813.73 25601.19
03/31/95 29813.73 26356.68
04/30/95 30649.11 27132.89
05/31/95 30797.62 28217.39
06/30/95 31503.05 28872.88
07/31/95 33006.73 29830.30
08/31/95 33990.62 29905.18
09/30/95 34399.03 31167.18
10/31/95 32876.78 31055.91
$10,000 OVER LIFE OF FUND:
Let's say you invested $10,000 in
Fidelity Capital Appreciation Fund on November 26, 1986, when the fund
started, and paid a 3% sales charge. As the chart shows, by October 31,
1995, the value of your investment would have grown to $32,877 - a 228.77%
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 $31,056 - a 210.56% 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
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post robust returns
for the 12 months ended October
31, 1995. The Standard & Poor's
Composite Index of 500 Stocks
finished the 12-month period with
a total return of 26.44% - well
above its historical annual
average of roughly 12%. With
inflation posing little threat,
interest rates fell during the first
half of 1995. The Federal
Reserve Board cut the federal
funds rate - the rate banks
charge each other for overnight
loans - by 0.25% on July 6 to
5.75%. Large-capitalization
stocks led the rally. Technology
companies - whose goods and
services benefited from both
corporate and consumer demand
- - posted the strongest earnings
growth and stock price gains.
Lower interest rates and
continued merger and acquisition
activity helped financial stocks
perform especially well. In June,
the Dow Jones Industrial Average
closed above 4500 for the first
time. Returns from foreign
markets suffered as investors
brought capital back to the U.S.
The Morgan Stanley Emerging
Markets Free Index was down
19.43% for the 12 months ended
October 31. The Morgan Stanley
EAFE (Europe, Australia, Far
East) Index was down 0.37% for
the year ended October 31.
European markets have fared
well through the first 10 months of
1995, while the Japanese market
has struggled through much of
the year.
An interview with Tom Sweeney, Portfolio Manager of Fidelity Capital
Appreciation Fund
Q. HOW DID THE FUND PERFORM, TOM?
A. For the 12 months ended October 31, 1995, Capital Appreciation returned
15.42% while the average capital appreciation fund was up 21.09% for the
same time period, according to Lipper Analytical Services.
Q. WHY DID THE FUND UNDERPERFORM ITS PEERS?
A. There are a few reasons. The most obvious is that the fund owned
virtually no technology stocks during a period in which technology stocks
outperformed the market. The fund didn't own tech stocks because I look for
bargains and I don't think there are many bargains in technology these
days. Secondly, the fund was overweighted in some sectors, such as electric
utilities and energy, which didn't do as well as the S&P during the period.
Finally, the fund had 47.1% of its securities invested overseas and the
stocks there have remained undervalued since the U.S. market has
outperformed most foreign markets.
Q. IS IT TOUGH TO FIND VALUE WHEN THE MARKET HAS BEEN SO HIGH?
A. Not at all. The sectors I have had strong weighting in were at extremely
low valuations both on a relative and absolute basis. Even though the
market is high, I have had no problems finding value in market sectors such
as electric utilities, which despite underperformance recently, have good
potential.
Q. THE FUND'S HOLDING IN ELECTRIC UTILITIES HAS NEARLY DOUBLED IN THE PAST
SIX MONTHS. WHAT IS YOUR THINKING?
A. I had been invested in utilities during the 1980s and sold out
completely by 1993. In 1994, interest rates went up, utilities stocks went
down and the market feared the effects of deregulation on the industry.
Though deregulation still poses a threat to the industry, the fact is that
deregulation should take a number of years to kick in - probably not until
1998. In the meantime, I plan to buy stocks of companies that have cash
flow to pay down debt so that when deregulation occurs a few years from
now, they should be in good financial shape to weather the changes. As of
October 31, 1995, Centerior Energy and Entergy were the fund's two largest
holdings.
Q. ENERGY HAS BEEN ANOTHER LARGE SECTOR WEIGHTING . . .
A. Yes. Oil and gas prices are currently very low, and as a result,
consumption is growing at a rapid rate. However, not much more capacity
could be produced worldwide if prices started going up, especially in oil.
Also, institutions have been underweighted and investors have gotten tired
of the lackluster results of the group. Elf Aquitaine was the largest
energy holding in the fund at the end of October. A French company, it was
only selling at three times price-to-cash flow - a common method of valuing
energy stocks. At the same time, similar U.S. energy companies have been
selling at five to six times cash flow. Elf was undervalued because it was
privatized in 1994 and I think investors are waiting for a couple of years
of good results before jumping in. My feeling is that, over time, Elf
Aquitaine will come more into line with its U.S. competitors and when the
price of energy recovers, it will be well poised to prosper. I've also been
buying smaller independent oil and gas companies in the U.S. because I
think they've been selling at very low valuations.
Q. WHY HAVE YOU LOWERED THE FUND'S HOLDINGS IN TRANSPORTATION AND FINANCIAL
STOCKS DURING THE PAST SIX MONTHS?
A. Both of those sector's weightings were reduced because of recent profit
taking. I sold the fund's position in Southern Pacific Railroad in the
merger bid from Union Pacific that occurred during the period. Because of
the complicated regulation process, Union Pacific offered to buy a portion
of the stock at $25 in cash and, if it gets all the approvals, it should
finish the acquisition next year. This was a very good gain for the fund.
As for the reduction in the financial position, I sold American Express
during the period when the stock finally began to show strong results from
a management change that took place almost three years ago. The fund did
well on the position and I used the proceeds to invest in some
opportunities in other industries.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. I'll continue looking for companies or industries that are selling at
low valuations where I believe business prospects are improving and that
the industry will recover. I'll continue to seek low priced stocks in
industries where there is positive demand growth and good prospects for
recovery.
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 October 31, 1995,
more than $1.6 billion
MANAGER: Tom Sweeney,
since 1986; manager Fidelity
Select Paper and Forest
Products Portfolio, 1986;
joined Fidelity in 1985
(checkmark)
TOM SWEENEY ON FOREIGN
INVESTMENTS:
"During the past six months,
some foreign stocks have
performed better than the
S&P 500 Index, but most
have done worse because
there are only one or two
markets in the entire world
that have done as well as the
U.S. market. Nevertheless,
Capital Appreciation has
maintained a large holding in
foreign stocks because I think
they're undervalued.
"Each time I buy a stock
overseas it's because I think
it's a better value than the
equivalent stock in the U.S.
When I find a stock that is
selling at half the valuation
overseas and has the same
business as a company in the
U.S., I have to consider it. The
United States is only one-third
the market capitalization of
the world and I believe
discrepancies between
markets even out over time.
Of course, because of
currency savings and other
factors, foreign investing is
not without risk."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Centerior Energy Corp. 6.0 7.1
Entergy Corp. 6.0 4.0
Lonrho Ltd. Ord. 5.9 6.2
Elf Aquitaine 5.1 5.1
Brierley Investments Ltd. 4.7 5.9
Niagara Mohawk Power Corp. 4.5 0.0
Northeast Utilities 4.2 0.0
Lehman Brothers Holdings, Inc. 3.9 3.4
Cytec Industries, Inc. 3.3 2.1
Minsur SA Class T 2.5 0.1
TOP FIVE MARKET SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
Utilities 24.1 12.2
Transportation 14.4 16.6
Energy 14.3 10.2
Basic Industries 12.6 7.8
Holding Companies 10.6 12.1
ASSET ALLOCATION
AS OF OCTOBER 31, 1995* AS OF APRIL 30, 1995**
1
Row: 1, Col: 1, Value: 7.6
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 40.4
Row: 1, Col: 4, Value: 50.0
Row: 1, Col: 1, Value: 12.3
Row: 1, Col: 2, Value: 1.6
Row: 1, Col: 3, Value: 35.6
Row: 1, Col: 4, Value: 50.5
Stocks 92.2%
Bonds 0.2%
Short-term
Investments 7.6%
FOREIGN
INVESTMENTS 47.1%
Stocks 87.6%
Bonds 0.1%
Short-term
Investments 12.3%
FOREIGN
INVESTMENTS 42.0%
**
*
INVESTMENTS OCTOBER 31, 1995
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 91.3%
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - 11.7%
CHEMICALS & PLASTICS - 3.3%
Cytec Industries, Inc. (a)(c) 1,000,000 $ 54,750
METALS & MINING - 6.5%
Energy Resources of Australia Ltd. 1,500,000 5,133
Maxco, Inc. (a)(c) 431,700 3,346
Minsur SA Class T (c) 5,950,000 41,380
Paranapanema SA PN (Pfd. Reg.) (non-vtg.) (f) 2,050,000 23,581
Pechiney International SA 550,000 28,725
South Crofty Holdings Ltd. (a)(c) 2,000,000 2,826
Tambang Timah PT, Series B GDR (a)(e) 225,000 2,558
107,549
PAPER & FOREST PRODUCTS - 1.9%
James River Corp. of Virginia 1,000,000 32,125
TOTAL BASIC INDUSTRIES 194,424
CONSTRUCTION & REAL ESTATE - 2.0%
BUILDING MATERIALS - 1.6%
CalMat Co. (c) 1,612,500 27,211
CONSTRUCTION - 0.3%
McDermott (J. Ray) SA 350,000 5,294
REAL ESTATE - 0.1%
Major Realty Corp. (a)(c) 680,000 1,445
TOTAL CONSTRUCTION & REAL ESTATE 33,950
DURABLES - 0.0%
AUTOS, TIRES, & ACCESSORIES - 0.0%
Oakhurst Capital, Inc. (a) 115,000 216
Oakhurst Capital, Inc. (a)(d) 174,000 277
Steel City Products, Inc. (a)(d) 174,000 5
498
ENERGY - 14.3%
ENERGY SERVICES - 6.0%
Arethusa Offshore Ltd. 500,000 9,688
Diamond Offshore Drilling, Inc. (a) 41,000 1,020
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Dual Drilling Co. (a)(c) 1,025,000 $ 9,994
Dual Invest AS:
Class A 100,000 562
Class B (non-vtg.) 2,000,000 11,565
Mosvold Shipping Ltd. 2,100,000 2,024
Smedvig AS (c) 1,500,000 26,022
Transocean Drilling AS (a)(c) 2,500,000 38,149
99,024
OIL & GAS - 8.3%
Atlantic Richfield Co. 100,000 10,675
Benton Oil & Gas Co. (a) 120,000 1,455
Cabot Oil & Gas Corp. Class A 170,000 2,274
Chieftain International, Inc. (a) 104,500 1,438
Comstock Resources, Inc. (a) 240,000 1,050
Cross Timbers Oil Co. 130,000 1,885
Elf Aquitaine 1,250,000 85,253
HS Resources, Inc. (a) 120,000 1,665
Louis Dreyfus Natural Gas Corp. (a) 116,000 1,624
Mesa, Inc. (a) 500,000 2,125
Oryx Energy Co. (a) 145,000 1,668
Parker & Parsley Petroleum Co. 120,000 2,220
Saga Petroleum AS:
Class A 133,900 1,678
Class B 1,000,000 12,047
Santa Fe Energy Resources, Inc. (a) 175,000 1,553
Seagull Energy Corp. (a) 135,000 2,312
Snyder Oil Corp. 120,000 1,230
Union Pacific Resources Group, Inc. (a) 160,000 3,640
Union Texas Petroleum Holdings, Inc. 170,000 3,060
138,852
TOTAL ENERGY 237,876
FINANCE - 10.6%
INSURANCE - 6.7%
Abtrust Lloyds Insurance Trust PLC (c) 3,000,000 3,841
Acceptance Insurance Co., Inc. (a)(c) 1,095,500 16,432
Angerstein Underwriting Trust PLC (c) 10,000,000 13,987
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Angerstein Underwriting Trust PLC (warrants) (a) 1,000,000 $ 364
Archer (AJ) Holdings PLC (c) 2,559,300 2,144
CLM Insurance Fund PLC (c) 8,600,000 12,641
Euclidian PLC (a) 865,000 1,189
Finsbury Underwriting Investment Trust PLC (c) 3,000,000 4,884
HCG Lloyds Investment Trust PLC (c) 6,500,000 9,246
Hiscox Select Insurance Fund PLC 1,000,000 1,612
London Insurance Market Investment Trust PLC 12,000,000 19,725
Masthead Insurance Underwriting PLC (c) 4,000,000 5,753
Matheson Lloyds Investment Trust PLC (c) 2,500,000 3,121
New London Capital PLC (c) 6,000,000 7,966
Ockham Holdings PLC (c) 5,050,000 4,110
Syndicate Capital Trust PLC (c) 3,000,000 4,362
111,377
SECURITIES INDUSTRY - 3.9%
Lehman Brothers Holdings, Inc. 3,000,000 65,250
TOTAL FINANCE 176,627
HOLDING COMPANIES - 10.6%
Brierley Investments Ltd. 100,000,000 77,733
Lonrho Ltd. Ord. (c) 40,000,000 98,939
176,672
INDUSTRIAL MACHINERY & EQUIPMENT - 0.4%
ELECTRICAL EQUIPMENT - 0.4%
Genlyte Group, Inc. (a)(c) 1,280,000 7,040
NONDURABLES - 0.0%
AGRICULTURE - 0.0%
Alico, Inc. 12,500 219
PRECIOUS METALS - 1.7%
Coeur d'Alene Mines Corp. (c) 1,500,000 25,313
Pan American Silver Corp. (a) 275,400 1,818
War Eagle Mining, Inc. (a)(c) 750,000 965
28,096
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - 1.2%
Hancock Fabrics, Inc. (c) 2,135,000 $ 18,681
House of Fabrics, Inc. (a)(c) 700,000 394
19,075
TECHNOLOGY - 0.5%
ELECTRONIC INSTRUMENTS - 0.5%
Medar, Inc. (a)(c) 870,000 7,395
TRANSPORTATION - 14.2%
SHIPPING - 14.2%
Argonaut AB:
Class A Free shares 1,000,000 1,539
Class B Free shares (a)(c) 9,500,000 14,617
Atlantic Container Lines AB (a)(c)(e) 582,200 7,388
BT Shipping Ltd. ADR (a)(c) 875,000 2,406
Benor Tankers (a) 650,000 3,132
Bergesen Group:
Class A 1,550,000 32,118
Class B 1,550,000 31,869
Bona Shipholdings Ltd. (a) 1,000,000 10,280
Bonheur AS (c) 730,000 14,716
Concordia Maritime AB Class B Free shares (a)(c) 2,000,000 4,525
First Olsen Tankers Ltd. (a)(c) 2,000,000 12,208
Frontline (a)(c) 3,400,000 8,770
Ganger Rolf (c) 850,000 17,340
ICB Shipping Class B (c) 2,800,000 23,230
International Shipholding Corp. (c) 480,000 11,460
London & Overseas Freighters PLC 225,000 284
London & Overseas Freighters PLC sponsored ADR 80,000 990
Nordstroem & Thulin AB Class B Free shares (c) 7,410,000 19,896
Teekay Shipping Corp. (c) 780,000 18,135
Wah Kwong Shipping Holdings Ltd. 1,380,000 1,937
236,840
UTILITIES - 24.1%
ELECTRIC UTILITY - 24.1%
Centerior Energy Corp. (c) 10,000,000 100,000
Entergy Corp. 3,500,000 99,750
New York State Electric & Gas Corp. 100,000 2,525
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
ELECTRIC UTILITY - CONTINUED
Niagara Mohawk Power Corp. 6,900,000 $ 74,175
Northeast Utilities 2,820,000 69,795
Ohio Edison Co. 520,000 11,895
Peco Energy Co. 350,000 10,238
Public Service Co. of New Mexico (a) 500,000 8,375
Tucson Electric Power Co. (a) 8,000,000 24,000
400,753
TOTAL COMMON STOCKS
(Cost $1,408,587) 1,519,465
NONCONVERTIBLE PREFERRED STOCKS - 0.9%
BASIC INDUSTRIES - 0.9%
METALS & MINING - 0.9%
Freeport-McMoran Copper & Gold, Inc.
depositary shares representing
0.025 silver denominated pfd. (Cost $14,776) 750,000 15,750
CONVERTIBLE BONDS - 0.2%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) AMOUNT (B) (000S)
TRANSPORTATION - 0.2%
SHIPPING - 0.2%
Concordia Maritime AB 7%, 4/30/02
(Cost $2,161) - SEK 16,100 3,060
REPURCHASE AGREEMENTS - 7.6%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements,
(U.S. Treasury obligations), in a joint
trading account at 5.88% dated
10/31/95 due 11/1/95 $ 126,591 126,570
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,552,094) $ 1,664,845
CURRENCY ABBREVIATIONS
SEK - Swedish krona
LEGEND
1. Non-income producing
2. Principal amount is stated in United States dollars unless otherwise
noted.
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 COST
SECURITY DATE (000S)
Oakhurst Capital, Inc. 9/27/94 $ 581
Steel City Products, Inc. 9/27/94 $ 5
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 $9,946,000 or 0.6% of net
assets.
6. Shares in thousands.
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 52.9%
Norway 12.8
United Kingdom 11.7
France 6.9
Sweden 5.0
New Zealand 4.7
Peru 2.5
Brazil 1.4
Others (individually less than 1%) 2.1
TOTAL 100.0%
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $1,554,979,000. Net unrealized appreciation aggregated
$109,866,000, of which $208,126,000 related to appreciated investment
securities and $98,260,000 related to depreciated investment securities.
The fund hereby designates $17,165,000 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) OCTOBER 31, 1995
ASSETS
Investment in securities, at value (including repurchase $ 1,664,845
agreements of $126,570) (cost $1,552,094) -
See accompanying schedule
Receivable for investments sold 38,762
Receivable for fund shares sold 964
Dividends receivable 3,860
Interest receivable 8
Other receivables 367
TOTAL ASSETS 1,708,806
LIABILITIES
Payable for investments purchased $ 29,458
Payable for fund shares redeemed 3,332
Accrued management fee 1,126
Other payables and accrued expenses 727
Collateral on securities loaned, at value 14,166
TOTAL LIABILITIES 48,809
NET ASSETS $ 1,659,997
Net Assets consist of:
Paid in capital $ 1,409,531
Undistributed net investment income 34,952
Accumulated undistributed net realized gain (loss) on 102,774
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 112,740
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 93,747 shares outstanding $ 1,659,997
NET ASSET VALUE and redemption price per share $17.71
($1,659,997 (divided by) 93,747 shares)
Maximum offering price per share (100/97.00 of $17.71) $18.26
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31, 1995
INVESTMENT INCOME $ 46,518
Dividends (including $17,935 received from
affiliated issuers)
Interest (including income on securities loaned of $111) 10,815
TOTAL INCOME 57,333
EXPENSES
Management fee $ 10,498
Basic fee
Performance adjustment 2,841
Transfer agent fees 4,167
Accounting fees and expenses 678
Non-interested trustees' compensation 35
Custodian fees and expenses 276
Audit 36
Total expenses before reductions 18,531
Expense reductions (524) 18,007
NET INVESTMENT INCOME 39,326
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain (loss) of 118,162
$(18,453) on sales of investments in affilated issues)
Foreign currency transactions (221) 117,941
Change in net unrealized appreciation (depreciation) on:
Investment securities 85,601
Assets and liabilities in foreign currencies (45) 85,556
NET GAIN (LOSS) 203,497
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 242,823
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 39,326 $ 20,973
Net investment income
Net realized gain (loss) 117,941 187,351
Change in net unrealized appreciation (depreciation) 85,556 (130,144)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 242,823 78,180
FROM OPERATIONS
Distributions to shareholders (16,152) (7,623)
From net investment income
From net realized gain (138,737) (121,427)
TOTAL DISTRIBUTIONS (154,889) (129,050)
Share transactions 711,829 1,446,506
Net proceeds from sales of shares
Reinvestment of distributions 152,268 126,664
Cost of shares redeemed (961,510) (1,143,652)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (97,413) 429,518
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (9,479) 378,648
NET ASSETS
Beginning of period 1,669,476 1,290,828
End of period (including undistributed net investment $ 1,659,997 $ 1,669,476
income of $34,952 and $18,112, respectively)
OTHER INFORMATION
Shares
Sold 43,318 84,808
Issued in reinvestment of distributions 10,084 7,499
Redeemed (57,882) (68,525)
Net increase (decrease) (4,480) 23,782
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,
1995 1994 D 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning $ 17.00 $ 17.34 $ 13.72 $ 15.48 $ 12.85
of period
Income from Investment
Operations
Net investment income .36 .17 .14 .26 .85
C
Net realized and 1.98 1.00 4.30 .73 1.96
unrealized gain (loss)
Total from investment 2.34 1.17 4.44 .99 2.81
operations
Less Distributions (.17) (.10) (.18) (.62) (.17)
From net investment
income
From net realized gain (1.46) (1.41) (.64) (2.13) (.01)
Total distributions (1.63) (1.51) (.82) (2.75) (.18)
Net asset value, end of $ 17.71 $ 17.00 $ 17.34 $ 13.72 $ 15.48
period
TOTAL RETURN A,B 15.42 6.97 34.12 9.34 22.05
% % % % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,660 $ 1,669 $ 1,291 $ 1,009 $ 1,110
(in millions)
Ratio of expenses to 1.09 1.19 .87 .71 .83
average net assets % % % % %
Ratio of expenses to 1.06 1.17 .86 .71 .83
average net assets after % % % % %
expense reductions
Ratio of net investment 2.31 1.22 .93 1.63 3.87
income to average net % % % % %
assets
Portfolio turnover rate 87 124 120 99 72
% % % % %
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO
$0.43 PER SHARE.
D 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, NET INVESTMENT INCOME PER SHARE MAY REFLECT
CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995
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 (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange) are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
of their purchase date are valued at amortized cost or original cost plus
accrued interest, both of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts , disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
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, which may result in distribution
reclassifications, are primarily due to differing treatments for litigation
proceeds, 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.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the 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, and are collateralized
by U.S. Treasury or Federal Agency obligations.
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. 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.
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 $282,000 or 0.0%
of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,322,531,000 and $1,397,975,000 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 .2700% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. The
basic fee is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on the fund's investment performance as compared
to the appropriate index over a specified period of time. For the period,
the management fee was equivalent to an annual rate of .78% of average net
assets after the performance adjustment.
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 before
October 12, 1990 are subject to the deferred sales charge upon redemption.
For the period, FDC received sales
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD - CONTINUED
charges and deferred sales charges of $715,000 and $178,000, respectively,
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.
During the period November 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number of accounts and the number of transactions
made by shareholders. Effective January 1, 1995, the Board of Trustees
approved a revised transfer agent contract pursuant to which 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.
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 $1,480,000 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 $13,902,000 and
$14,166,000, 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
$524,000 under this arrangement.
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
DOLLAR AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Abtrust Lloyds Insurance Trust PLC $ - $ - $ 214 $ 3,841
Acceptance Insurance Co., Inc. 7,301 12,305 - 16,432
Angerstein Underwriting Trust PLC 7,739 125 239 13,987
Archer (AJ) Holdings PLC 418 - - 2,144
Argonaut AB Class B Free shares 10,168 - - 14,617
Atlantic Container Lines AB 888 686 - 7,388
Bergesen Group Class A 17,260 4,649 138 32,118
Bonheur AS 2,260 - - 14,716
Borden, Inc. - 49,365 287 -
Bowater, Inc. 1,282 4,785 600 -
BT Shipping Ltd. ADR - - - 2,406
CLM Insurance Fund PLC 3,519 - 289 12,641
CalMat Co. 7,378 151 398 27,211
Centerior Energy Corp. 1,239 54,775 9,644 100,000
Coeur d'Alene Mines Corp. - - 225 25,313
Concordia Maritime AB
Class B Free shares 1,048 - - 4,525
Cytec Industries, Inc. - - - 54,750
Delian Lloyds Investment Trust PLC - 7,739 127 -
Dual Drilling Co. 2,442 2,620 - 9,994
Finsbury Underwriting Investment
Trust PLC - - 81 4,884
First Olsen Tankers Ltd. - - - 12,208
Four Seasons Hotels, Inc. - - - -
Frontline 1,788 - - 8,770
Ganger Rolf 5,527 - 195 17,340
Genlyte Group, Inc. - - - 7,040
Hallwood Group, Inc. - 1,007 - -
Hancock Fabrics, Inc. 1,316 1,272 670 18,681
HCG Lloyds Investment Trust PLC - - 129 9,246
House of Fabrics, Inc. - 2,404 - 394
ICB Shipping Class B - - 25 23,230
International Shipholding Corp. - 400 100 11,460
Kahler Realty Corp. - 898 27 -
Lonrho Ltd. Ord. 3,109 3,531 3,188 98,939
Major Realty Corp. - 53 - 1,445
Masthead Insurance Underwriting PLC - - 198 5,753
Matheson Lloyds Investment Trust PLC 3,128 - 32 3,121
Maxco, Inc. - 8 - 3,346
Medar, Inc. 2,057 585 - 7,395
Minsur SA Class T 11,692 468 - 41,380
Neiman-Marcus Group, Inc. 7,864 35,818 153 -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
New London Capital PLC $ - $ - $ 252 $ 7,966
Nordstroem & Thulin AB
Class B Free shares 10,951 - - 19,896
Ockham Holdings PLC 231 - 79 4,110
Premium Trust - 1,511 - -
Smedvid Tankships Ltd. 3,736 15,477 191 -
Smedvig AS 250 1,476 155 26,022
South Crofty Holdings Ltd. 473 - - 2,826
Syndicate Capital Trust PLC - - 131 4,362
Teekay Shipping Corp. - - 168 18,135
Transocean Drilling AS - 5,588 - -
War Eagle Mining, Inc. - - - 965
Wilrig AS - 4,184 - -
TOTALS $ 115,064 $ 211,880 $ 17,935 $ 700,997
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Capital Trust and the Shareholders of Fidelity
Capital Appreciation Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Capital Trust: Fidelity Capital Appreciation Fund, including the
schedule of portfolio investments, as of October 31, 1995, 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 October 31, 1995 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 Capital Trust: Fidelity Capital Appreciation Fund as of October
31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 4, 1995
DISTRIBUTIONS
The Board of Trustees of Fidelity Capital Appreciation Fund voted to pay on
December 11, 1995, to shareholders of record at the opening of business on
December 8, 1995, a distribution of $1.00 derived from capital gains
realized from sales of portfolio securities and a dividend of $.40 from net
investment income.
A total of 23% of the dividends distributed during the fiscal year
qualifies for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of the applicable
percentage for use in preparing 1995 income tax returns.
(2_FIDELITY_LOGOS)FIDELITY
STOCK SELECTOR
ANNUAL REPORT
OCTOBER 31, 1995
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 23 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 27 Notes to the financial statements.
REPORT OF INDEPENDENT 31 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 32
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 RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although the markets have been fairly positive this year, no one can
predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
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, as we witnessed last year. 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 of change in value, the average annual
percentage change, or the growth of a hypothetical $10,000 investment. A
fund's total return includes changes in 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 OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Stock Selector 31.54% 198.08% 192.11%
S&P 500(registered trademark) 26.44% 121.65% 124.48%
Average Growth Fund 22.14% 125.83% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or since the fund
started on September 28, 1990. 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 Composite Index of 500 Stocks - a common proxy for
the U.S. stock market. 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 558 growth funds with similar objectives
tracked by Lipper Analytical Services over the past 12 months. Both
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Stock Selector 31.54% 24.41% 23.41%
S&P 500 26.44% 17.26% 17.20%
Average Growth Fund 22.14% 17.24% n/a
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
Fidelity StStandard &
09/28/90 10000.00 10000.00
09/30/90 10000.00 10171.45
10/31/90 9800.00 10127.71
11/30/90 10660.00 10781.96
12/31/90 11150.69 11082.78
01/31/91 12313.89 11565.99
02/28/91 13376.82 12392.96
03/31/91 13948.39 12692.87
04/30/91 14179.02 12723.33
05/31/91 14800.74 13272.98
06/30/91 13988.50 12665.08
07/31/91 14640.29 13255.27
08/31/91 14921.07 13569.42
09/30/91 14870.93 13342.81
10/31/91 15231.92 13521.60
11/30/91 14670.38 12976.68
12/31/91 16273.85 14461.21
01/31/92 16763.21 14192.24
02/29/92 17408.75 14376.73
03/31/92 17065.16 14096.39
04/30/92 16940.21 14510.82
05/31/92 17002.68 14581.92
06/30/92 16721.56 14364.65
07/31/92 17398.34 14952.17
08/31/92 16940.21 14645.65
09/30/92 17127.63 14818.47
10/31/92 17460.81 14870.33
11/30/92 18210.47 15377.41
12/31/92 18783.92 15566.55
01/31/93 19306.58 15697.31
02/28/93 19263.92 15910.80
03/31/93 19957.25 16246.51
04/30/93 19338.58 15853.35
05/31/93 19882.58 16278.22
06/30/93 20277.25 16325.42
07/31/93 20234.58 16260.12
08/31/93 21119.91 16876.38
09/30/93 21706.57 16746.43
10/31/93 21493.24 17093.08
11/30/93 20767.91 16930.70
12/31/93 21408.36 17135.56
01/31/94 22447.38 17718.17
02/28/94 22344.62 17238.01
03/31/94 21339.85 16486.43
04/30/94 21945.00 16697.46
05/31/94 21750.89 16971.30
06/30/94 21088.66 16555.50
07/31/94 21408.36 17098.52
08/31/94 22607.23 17799.56
09/30/94 21785.15 17363.47
10/31/94 22207.60 17754.15
11/30/94 21134.33 17107.54
12/31/94 21574.27 17361.25
01/31/95 20851.51 17811.42
02/28/95 22176.56 18505.53
03/31/95 22995.69 19051.63
04/30/95 23814.81 19612.70
05/31/95 24212.33 20396.62
06/30/95 26091.49 20870.44
07/31/95 28091.12 21562.50
08/31/95 28295.90 21616.62
09/30/95 29645.04 22528.84
10/31/95 29211.39 22448.42
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Stock Selector on September 28, 1990, when the fund started. As the chart
shows, by October 31, 1995, the value of your investment would have grown
to $29,211 - a 192.11% 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 $22,448 - a
124.48% 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
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post robust returns
for the 12 months ended October
31, 1995. The Standard & Poor's
Composite Index of 500 Stocks
finished the 12-month period with
a total return of 26.44% - well
above its historical annual
average of roughly 12%. With
inflation posing little threat,
interest rates fell during the first
half of 1995. The Federal
Reserve Board cut the federal
funds rate - the rate banks
charge each other for overnight
loans - by 0.25% on July 6 to
5.75%. Large-capitalization
stocks led the rally. Technology
companies - whose goods and
services benefited from both
corporate and consumer demand
- - posted the strongest earnings
growth and stock price gains.
Lower interest rates and
continued merger and acquisition
activity helped financial stocks
perform especially well. In June,
the Dow Jones Industrial Average
closed above 4500 for the first
time. Returns from foreign
markets suffered as investors
brought capital back to the U.S.
The Morgan Stanley Emerging
Markets Free Index was down
19.43% for the 12 months ended
October 31, 1995. The Morgan
Stanley EAFE (Europe, Australia,
Far East) Index was down 0.37%
for the year ended October 31,
1995. European markets have
fared well through the first 10
months of 1995, while the
Japanese market has struggled
through much of the year.
An interview with Brad Lewis, Portfolio Manager of Fidelity Stock Selector
Q. BRAD, HOW DID THE FUND PERFORM?
A. The fund performed very well. For the 12 months ended October 31, 1995,
Stock Selector returned 31.54% while the average growth fund returned
22.14%, according to Lipper Analytical Services.
Q. WHAT FACTORS LED THE FUND TO SUCH STRONG RETURNS DURING THE PAST SIX
MONTHS?
A. Stock Selector benefited from its ability to overweight certain
industries. For most of the period, the fund was heavily invested in
technology stocks, which performed well during the period. Basically, the
fund's performance during the period was due to good stock selection in a
market where big cap stocks have done quite well. Broader market averages
such as the Russell 2000 and Value Line Index have substantially lagged
Stock Selector's return.
Q. DID YOU MAKE ANY SIGNIFICANT CHANGES TO THE FUND'S STOCK SELECTION
METHODOLOGY DURING THE PERIOD?
A. Not really. Though I'm always fine tuning, I haven't made any major
adjustments since the fund began using a new artificial intelligence
algorithm in place of the neural network in February 1995. The database now
consists of more than 15,000 stock observations and the algorithms measure
cause-and-effect relationships. I use artificial intelligence to analyze
seven to 10 years of data on a particular stock and the computer reaches
some conclusions about how it's behaved in a variety of circumstances and
market conditions. Then I reconcile this information with current data to
determine expected returns in the future.
Q. THOUGH TECHNOLOGY IS STILL A FAIRLY LARGE SECTOR HOLDING IN THE FUND, IT
DROPPED FROM 33.5% OF TOTAL INVESTMENTS SIX MONTHS AGO TO 12% AS OF OCTOBER
31, 1995. WHY DID YOU REDUCE THE FUND'S TECHNOLOGY HOLDING?
A. At the end of July 1995, my top-down econometric models, which I use to
help me make purchase and sale decisions, turned cautious on the fund's
investment mix. In order to revise the fund's investments to be consistent
with the models, I began cutting back on technology stocks. As a result,
the fund benefited accordingly when technology stocks suffered a setback in
September.
Q. WHAT OTHER STRATEGIC CHANGES DID YOU MAKE TO THE FUND DURING THE PERIOD?
A. While reducing the fund's investment in technology, I increased its
holdings in market sectors such as health and financial stocks. The
quantitative models that I use indicated that larger capitalized companies
with stable earnings growth would have the best prospects going forward. As
a result, the fund is more defensively positioned in stocks such as
Schering Plough and Citicorp.
Q. WHAT IMPACT DID THE FUND'S INVESTMENTS IN FOREIGN STOCKS HAVE DURING THE
PERIOD?
A. At the end of October 1995 the fund had about 10% of its total
investments invested overseas. The fund's foreign investments produced a
somewhat negative effect on results since European countries haven't shown
returns that have been nearly as strong as those in the U.S.
Q. WHICH PARTICULAR STOCKS PERFORMED WELL?
A. On the foreign side, Nokia performed well during the period, returning
36% during the past six months. So did Micron Technology, the fund's
largest holding before I reduced it considerably in August. Between May and
October 1995 it rose more than 70%, contributing positively to the fund's
performance. Another strong contributor was Oxford Health Plans, which
increased more than 80% during the period.
Q. THE FUND HAS ABOUT 12% OF ITS ASSETS INVESTED IN S&P 500 FUTURES. WHAT'S
YOUR STRATEGY?
A. When the market looks vulnerable - as the models indicated it did
towards the end of the period - I like to have liquidity in the fund.
However, with the market doing well, I still want to participate rather
than hold cash. Therefore, I've found that futures are an effective way to
get returns that mirror the market while maintaining liquidity in the fund.
Of course, futures are not without risk and can be vulnerable to shifts in
the market.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. Well, I think it's highly unlikely that we'll see the kind of returns in
the next six months that we have in the past six months. I expect to
increase the fund's holdings in foreign stocks in the next three to six
months as the market outlook improves there. Investors should know,
however, that no investment method is foolproof and that anything can
happen in the short term.
FUND FACTS
GOAL: to increase the value of
the fund's shares by investing
mainly in common stocks that
are determined through both
technical and fundamental
analysis, to be undervalued
compared to others in their
industries
START DATE: September 28,
1990
SIZE: as of October 31, 1995,
more than $1.1 billion
MANAGER: Bradford Lewis,
since 1990; manager,
Fidelity Disciplined Equity,
since 1988, and Fidelity
Small Cap Stock, since
1993; joined Fidelity in 1985
(checkmark)
BRAD LEWIS ON INVESTING IN
QUANT FUNDS:
"Most equity fund managers
make choices based on
research derived from a
traditional research department.
Quantitative funds are different.
The quant funds at Fidelity
are driven by a unique
methodology, which often
drives them to invest in
different stocks than you
might find in a traditionally
managed fund. Investors who
own quantitative funds in their
portfolios will derive the
benefits of style
diversification. By owning
funds with differing
investment methodologies,
portfolio risk can be lowered.
"In addition, since computer
models are dispassionate,
investors in quant funds get a
certain consistency in stock
selection. A quant fund is more
likely to ride out temporary
shifts in the market than to
react to them."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Oxford Health Plans, Inc. 3.6 0.0
NIKE, Inc. Class B 2.7 1.1
Scott Paper Co. 2.7 2.6
Schering-Plough Corp. 2.6 0.0
Medtronic, Inc. 2.6 0.8
St. Jude Medical, Inc. 2.4 0.0
Citicorp 2.3 0.0
Micron Technology, Inc. 2.3 5.0
Exxon Corp. 2.3 0.0
HealthCare COMPARE Corp. 2.0 0.0
TOP FIVE MARKET SECTORS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
Health 20.9 8.9
Finance 12.8 4.8
Technology 12.0 33.5
Basic Industries 7.7 10.7
Energy 6.1 0.0
ASSET ALLOCATION
AS OF OCTOBER 31, 1995* AS OF APRIL 30, 1995**
Row: 1, Col: 1, Value: 6.3
Row: 1, Col: 2, Value: 43.7
Row: 1, Col: 3, Value: 50.0
Row: 1, Col: 1, Value: 23.5
Row: 1, Col: 2, Value: 46.5
Row: 1, Col: 3, Value: 30.0
Stocks and
equity futures 93.7%
Short-term
investments 6.3%
FOREIGN
INVESTMENTS 10.2%
Stocks 76.5%
Short-term
investments 23.5%
FOREIGN
INVESTMENTS 10.1%
*
**
INVESTMENTS OCTOBER 31, 1995
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 81.4%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 1.5%
AEROSPACE & DEFENSE - 1.4%
McDonnell Douglas Corp. 192,500 $ 15,737
SHIP BUILDING & REPAIR - 0.1%
Celsius Industrier AB Class B 32,000 606
TOTAL AEROSPACE & DEFENSE 16,343
BASIC INDUSTRIES - 7.7%
CHEMICALS & PLASTICS - 2.3%
BASF AG 4,000 877
Bayer AG 10,000 2,658
CGIP 3,000 568
Cytec Industries, Inc. (a) 11,600 635
Eastman Chemical Co. 136,800 8,140
Engelhard Corp. 58,200 1,448
Great Lakes Chemical Corp. 10,700 718
Hercules, Inc. 71,100 3,795
Hoechst AG Ord. 2,000 525
Kemira OY 25,000 210
Minerals Technologies, Inc. 5,800 231
Sealed Air Corp. (a) 34,700 915
Sekisui Chemical Co. Ltd. 60,000 782
Terra Industries, Inc. 345,000 4,356
25,858
IRON & STEEL - 0.0%
Algoma Steel, Inc. (a) 2,700 12
Thyssen AG Ord. (a) 1,500 270
282
METALS & MINING - 0.2%
Eramet SA 10,000 676
Nittetsu Mining Co. Ltd. 30,000 260
Phelps Dodge Corp. 6,500 412
RTZ Corp. PLC Ord. 20,000 277
1,625
PAPER & FOREST PRODUCTS - 5.2%
Boise Cascade Corp. 234,400 8,497
Bowater, Inc. 57,300 2,536
Champion International Corp. 88,600 4,740
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS - CONTINUED
Enso-Gutzeit OY Class R Free shares 50,000 $ 392
Georgia-Pacific Corp. 33,200 2,739
Mo Och Domsjoe AB Class B 5,000 255
Scott Paper Co. 570,200 30,363
Willamette Industries, Inc. 160,100 9,286
58,808
TOTAL BASIC INDUSTRIES 86,573
CONSTRUCTION & REAL ESTATE - 0.2%
BUILDING MATERIALS - 0.2%
Coflexip sponsored ADR 124,900 1,748
Lafarge Coppee SA 4,000 266
2,014
CONSTRUCTION - 0.0%
Sekisui House Ltd. 50,000 578
TOTAL CONSTRUCTION & REAL ESTATE 2,592
DURABLES - 3.5%
AUTOS, TIRES, & ACCESSORIES - 0.4%
Danaher Corp. 32,000 991
Honda Motor Co. Ltd. 30,000 523
Magna International, Inc. Class A 15,000 653
Michelin SA Cie Generale des Etablissements Class B 15,000 607
Toyota Motor Corp. 50,000 931
Transpro, Inc. (a) 17,000 187
Volvo AB Class B 30,000 677
4,569
CONSUMER DURABLES - 0.2%
Department 56, Inc. (a) 37,600 1,706
CONSUMER ELECTRONICS - 0.2%
Citizen Watch Co. Ltd. Ord. (a) 50,000 343
Matsushita Electric Industrial Co. Ltd. 100,000 1,421
1,764
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
TEXTILES & APPAREL - 2.7%
Jones Apparel Group, Inc. (a) 4,600 $ 158
NIKE, Inc. Class B 545,000 30,929
31,087
TOTAL DURABLES 39,126
ENERGY - 6.1%
ENERGY SERVICES - 0.2%
Sonat Offshore Drilling, Inc. 78,000 2,476
INDEPENDENT POWER - 0.9%
Thermo Electron Corp. (a) 214,600 9,872
OIL & GAS - 5.0%
Atlantic Richfield Co. 158,500 16,920
Chieftain International, Inc. (a) 50,000 688
Elf Aquitaine sponsored ADR 15,000 506
Exxon Corp. 338,600 25,861
Mobil Corp. 117,900 11,878
Norsk Hydro AS ADR 5,000 200
Saga Petroleum AS Class B 30,000 361
Total SA sponsored ADR 10,000 309
56,723
TOTAL ENERGY 69,071
FINANCE - 12.8%
BANKS - 3.6%
ABN-AMRO Holdings NV 12,500 525
Banco de Galicia Y Buenos Aires SA sponsored
ADR representing Class B shares 25,000 478
Banco Frances del Rio de la Plata SA ADR 25,000 547
Bank of Boston Corp. 6,000 267
Bank of New York Co., Inc. 91,000 3,822
Citicorp 404,000 26,208
Commerce Bancshares, Inc. 38,400 1,440
Deutsche Bank AG 27,500 1,243
Fokus Bank AS (a) 69,900 371
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Fokus Bank AS (a)(b) 42,000 $ 223
Mercantile Bankshares Corp. 129,000 3,548
Nordbanken AB (b) 38,000 562
Societe Generale Class A 4,000 458
Skandinaviska Enskilda Banken Class A Free shares 40,000 270
Toronto Dominion Bank 25,000 442
40,404
CLOSED END INVESTMENT COMPANY - 1.4%
All Seasons Global Fund, Inc. 13,100 56
Alliance Global Environment Fund (a) 70,000 656
Central European Equity Fund (a) 60,000 960
Emerging Germany Fund, Inc. 150,000 1,088
Emerging Markets Infrastructure Fund, Inc. 70,300 668
Five Arrows Chile Investment Trust Ltd. 1,650,000 4,784
GT Global Developing Markets Fund 200,000 1,875
Global Health Sciences Fund (a) 20,000 295
Growth Fund of Spain, Inc. 50,000 525
Morgan Stanley Asia-Pacific Fund, Inc. 100,000 1,100
The New Germany Fund, Inc. 45,000 551
Southern Africa Fund, Inc. 30,600 474
TCW/DW Emerging Markets Opportunities Trust (SBI) 175,000 1,663
Templeton Dragon Fund, Inc. 85,000 1,020
15,715
CREDIT & OTHER FINANCE - 1.7%
Bank of International Settlements 100 924
Green Tree Financial Corp. 685,800 18,259
Mercury Finance Co. 2,400 31
19,214
INSURANCE - 5.0%
CIGNA Corp. 13,500 1,338
Dai-Tokyo Fire & Marine Insurance Ord. 100,000 644
Dowa Fire & Marine Industries Co. Ltd. 50,000 233
General Re Corp. 53,600 7,765
HealthCare COMPARE Corp. (a) 613,000 22,681
International Nederlanden Groep NV 12,500 745
MGIC Investment Corp. 126,900 7,217
Mercury General Corp. 9,000 378
Providian Corp. 209,000 8,203
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Prudential Reinsurance Holdings, Inc. (a) 13,700 $ 279
Royal Insurance Holdings PLC 394,852 2,437
SunAmerica, Inc. 69,000 4,295
56,215
SECURITIES INDUSTRY - 1.1%
Canadian General Investment Ltd. 25,000 588
Donaldson Lufkin & Jenrette, Inc. 1,200 36
Franklin Resources, Inc. 138,100 7,009
Nomura Securities Co. Ltd. 30,000 550
Price (T. Rowe) Associates, Inc. 20,300 1,010
Schwab (Charles) Corp. 124,000 2,837
Yamaichi Securities Co. Ltd. 30,000 158
12,188
TOTAL FINANCE 143,736
HEALTH - 20.9%
DRUGS & PHARMACEUTICALS - 8.5%
Amgen, Inc. (a) 468,500 22,488
Andrea-Noris Zahn 2,500 657
Astra AB Class A Free shares 15,000 552
Bristol-Myers Squibb Co. 133,100 10,149
Depotech Corp. (a) 1,700 25
Elf Sanofi SA 8,800 562
Glaxo PLC sponsored ADR 40,000 1,085
Merck & Co., Inc. 304,800 17,526
Myriad Genetics (a) 1,100 30
Novo-Nordisk AS Class B 7,500 955
Pfizer, Inc. 130,900 7,510
Pharmacia AB Class A Free shares 20,000 697
Schering-Plough Corp. 557,400 29,890
Sigma Aldrich Corp. 37,600 1,786
SmithKline Beecham PLC ADR 10,000 519
Takeda Chemical Industries Ltd. 100,000 1,411
95,842
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES - 8.6%
Abbott Laboratories 524,900 $ 20,865
Becton, Dickinson & Co. 51,000 3,315
Biomet, Inc. (a) 211,800 3,521
Boston Scientific Corp. (a) 131,000 5,518
Cardinal Health, Inc. 2,300 118
Gehe AG 1,200 589
Instrumentarium OY Class B 10,000 259
Medtronic, Inc. 511,400 29,533
Millipore Corp. 180,900 6,399
Orthofix International 10,000 98
St. Jude Medical, Inc. (a) 499,400 26,593
Scandinavian Mobility (b) 12,000 286
97,094
MEDICAL FACILITIES MANAGEMENT - 3.8%
Health Management Associates, Inc. Class A (a) 4,500 97
Oxford Health Plans, Inc. (a) 520,200 40,705
Sterling House Corp. 2,400 30
Total Renal Care Holdings 1,500 23
Vivra, Inc. 66,900 2,208
43,063
TOTAL HEALTH 235,999
HOLDING COMPANIES - 0.0%
Sanluis Corp. Unit 4,600 22
INDUSTRIAL MACHINERY & EQUIPMENT - 1.3%
ELECTRICAL EQUIPMENT - 1.1%
Alcatel Alsthom sponsored ADR 80,000 1,350
Allen Group, Inc. (The) 68,000 1,666
Amphenol Corp. Class A (a) 26,000 562
Glenayre Technologies, Inc. 91,100 5,853
Omron Corp. 100,000 2,342
Philips Electronics NV (Bearer) 10,000 386
Twentsche Kabel Holding NV 8,400 287
12,446
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - 0.2%
Bucher Holding AG (Bearer) 500 $ 315
Cardo AB (a) 20,000 311
Dover Corp. 4,700 186
Illinois Tool Works, Inc. 5,700 331
Mitsubishi Heavy Industries Ltd. 150,000 1,160
SKF AB Ord. 15,000 284
2,587
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 15,033
MEDIA & LEISURE - 2.0%
BROADCASTING - 0.0%
Carlton Communications 25,000 381
LEISURE DURABLES & TOYS - 1.4%
Cobra Golf, Inc. (a) 88,500 2,301
Mattel, Inc. 422,300 12,141
Salomon SA 500 289
Takara Co. Ltd. 80,000 619
15,350
LODGING & GAMING - 0.6%
Forte PLC 600,000 2,390
La Quinta Motor Inns, Inc. 141,875 3,653
6,043
PUBLISHING - 0.0%
Marieberg Tidnings Class A Free shares 11,000 262
Telegraaf 2,000 288
550
RESTAURANTS - 0.0%
Royal Co. Ltd. 30,000 450
TOTAL MEDIA & LEISURE 22,774
NONDURABLES - 1.5%
BEVERAGES - 0.6%
Bass PLC Ord. 260,000 2,723
Brahma (Cia Cervejaria) PN Class B (Pfd. Reg.) 625,000 239
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
BEVERAGES - CONTINUED
Heineken NV 2,000 $ 355
Kirin Brewery Co. Ltd. 40,000 404
PepsiCo, Inc. 49,800 2,627
6,348
FOODS - 0.8%
Eridania Beghin Say Group Ord. 3,000 505
Cultor OY Ord., Series 2 10,000 415
Hillsdown Holdings PLC 71,153 188
IBP, Inc. 107,400 6,431
Nestle SA (Reg.) 1,000 1,047
8,586
HOUSEHOLD PRODUCTS - 0.1%
Orkla AS Class B (non-vtg.) 10,000 487
Kao Corp. 60,000 729
Unilever NV Ord. 1,500 196
1,412
TOTAL NONDURABLES 16,346
PRECIOUS METALS - 0.1%
Anglo American Corp. of South Africa Ltd.:
ADR 10,000 568
(Reg.) 15,000 853
1,421
RETAIL & WHOLESALE - 2.7%
DRUG STORES - 0.7%
Eckerd Corp. (a) 12,600 499
General Nutrition Companies, Inc. (a) 98,000 2,438
Walgreen Co. 177,700 5,064
8,001
GENERAL MERCHANDISE STORES - 0.0%
Izumiya Co. Ltd. 30,000 462
GROCERY STORES - 2.0%
Safeway, Inc. (a) 363,400 17,170
Tesco PLC Ord. 1,000,000 4,742
21,912
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISCELLANEOUS - 0.0%
Circuit City Stores, Inc. 300 $ 10
TOTAL RETAIL & WHOLESALE 30,385
SERVICES - 1.5%
PRINTING - 1.4%
Alco Standard Corp. 152,300 13,478
Reynolds & Reynolds Co. Class A 82,300 2,932
16,410
SERVICES - 0.1%
Robert Half International, Inc. (a) 25,000 913
TOTAL SERVICES 17,323
TECHNOLOGY - 12.0%
COMMUNICATIONS EQUIPMENT - 0.9%
Andrew Corp. (a) 53,000 2,239
Cisco Systems, Inc. (a) 17,500 1,356
Microdyne Corp. (a) 11,300 314
Newbridge Networks Corp. (a) 25,000 763
Nokia Corp. AB, Series K 100,000 5,844
10,516
COMPUTER SERVICES & SOFTWARE - 1.0%
Cadence Design Systems, Inc. (a) 94,650 3,052
Cooper & Cheyan Technology 1,900 21
DST Systems, Inc. 5,700 120
Equifax Inc. 162,700 6,345
Smith Micro Software, Inc. (a) 500 6
SunGard Data Systems, Inc. (a) 72,500 1,994
11,538
COMPUTERS & OFFICE EQUIPMENT - 1.5%
Canon, Inc. 100,000 1,715
Fujitsu Ltd. 100,000 1,195
NEC Corp. 100,000 1,323
OKI Electric Industry Co. Ltd. (a) 100,000 928
Read Rite Corp. (a) 301,400 10,511
Ricoh Co. Ltd. Ord. 150,000 1,617
17,289
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONIC INSTRUMENTS - 2.3%
KLA Instruments Corp. (a) 428,400 $ 18,314
Lam Research Corp. (a) 120,900 7,360
Plasma & Materials Technologies, Inc. (a) 700 8
25,682
ELECTRONICS - 6.1%
AVX Corp. 3,600 112
Alliance Semiconductor Corp. (a) 248,100 7,629
Analog Devices, Inc. (a) 10,900 394
Arrow Electronics, Inc. (a) 270,300 13,718
Hitachi Ltd. 200,000 2,058
Kyocera Corp. 20,000 1,642
Micron Technology, Inc. 368,100 25,995
Nitto Denko Corp. 30,000 479
SGS Thomson Microelectronics NV 15,000 679
Speedfam International, Inc. (a) 6,100 100
TDK Corp. 50,000 2,582
Tegal Corp. 4,300 55
Tencor Instruments (a) 200,200 8,534
Toshiba Corp. 200,000 1,452
Vishay Intertechnology, Inc. 80,300 2,831
68,260
PHOTOGRAPHIC EQUIPMENT - 0.2%
Fuji Photo Film Co. Ltd. 75,000 1,859
Konica Corp. 70,000 470
2,329
TOTAL TECHNOLOGY 135,614
TRANSPORTATION - 4.1%
AIR TRANSPORTATION - 3.8%
Cathay Pacific Airways Ltd. 2,000,000 2,948
Comair Holdings, Inc. 195,700 5,492
Delta Air Lines, Inc. 100 7
Helikopter Services AS 50,000 626
Maruzen Showa Unyu Co. Ltd. 30,000 146
Northwest Airlines Corp. Class A (a) 200,000 8,025
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
AIR TRANSPORTATION - CONTINUED
Qantas Airways Ltd. sponsored ADR (a)(b) 16,200 $ 286
UAL Corp. (a) 123,000 21,633
Valuejet, Inc. (a) 80,000 4,170
43,333
SHIPPING - 0.2%
Shun Tak Holdings Ltd. 2,500,000 1,972
TRUCKING & FREIGHT - 0.1%
New World Infrastructure Ltd. (b) 703,000 1,237
TOTAL TRANSPORTATION 46,542
UTILITIES - 3.5%
CELLULAR - 0.2%
Millicom International Cellular SA 4,000 132
Vodafone Group PLC sponsored ADR 50,000 2,044
2,176
ELECTRIC UTILITY - 0.2%
Consolidated Electric Power Asia Ltd. 250,000 506
Empresa Nacional De Electricidad SA sponsored ADR 3,000 151
Hidroelectrisa de Cantabrico SA 10,000 301
Veba AG Ord. 40,000 1,641
2,599
TELEPHONE SERVICES - 2.6%
BellSouth Corp. 112,000 8,568
Koninklijke PPT Nederland 10,000 352
NYNEX Corp. 366,500 17,223
Stet (Societa Finanziaria Telefonica) Spa Ord. 300,000 850
Tel-Save Holdings, Inc. (a) 1,000 14
Tele Danmark AS Class B ADR 20,000 523
Telecom Argentina Class B sponsored ADR 10,000 384
Telecom Italia Mobile Spa (a) 200,000 337
Telecom Italia Ord. 200,000 307
Telefonica de Argentina SA sponsored ADR 15,500 322
Telefonica de Espana SA sponsored ADR 10,000 376
Telefonos de Mexico SA sponsored ADR representing
shares Ord. Class L 5,000 138
29,394
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
WATER - 0.5%
Northumbrian Water Group PLC Ord. 40,000 $ 627
Severn Trent PLC Ord. 50,000 508
South West Water PLC Ord. 75,000 594
Yorkshire Water Ord. 399,999 3,872
5,601
TOTAL UTILITIES 39,770
TOTAL COMMON STOCKS
(Cost $777,756) 918,670
NONCONVERTIBLE PREFERRED STOCKS - 0.1%
FINANCE - 0.0%
CLOSED END INVESTMENT COMPANY - 0.0%
Thai Prime Fund 26,800 402
NONDURABLES - 0.0%
FOODS - 0.0%
Suedzucker AG 800 324
TECHNOLOGY - 0.0%
COMPUTER SERVICES & SOFTWARE - 0.0%
SAP AG 2,000 307
UTILITIES - 0.1%
TELEPHONE SERVICES - 0.1%
Stet (Societa Finanziaria Telefonica) Spa 300,000 655
TOTAL NONCONVERTIBLE PREFERRED STOCKS
(Cost $1,845) 1,688
U.S. TREASURY OBLIGATIONS - 0.7%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) AMOUNT (B) (000S)
U.S. Treasury Bill, yield at date of purchase
5 1/4%, 12/7/95 (c)
(Cost $7,559) $ 7,600 7,562
REPURCHASE AGREEMENTS - 17.8%
MATURITY VALUE (NOTE 1)
AMOUNT (000S) (000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 200,808 $ 200,775
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $987,935) $ 1,128,695
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED DATE AMOUNT AT VALUE
GAIN/(LOSS)
(000S) (000S)
PURCHASED
470 S&P 500 Futures Contracts Dec. 1995 $ 137,205 $ (788)
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 12.2%
LEGEND
1. Non-income producing
2. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $2,594,000 or 0.2% of net
assets.
3. A portion of the security was pledged to cover margin requirements for
futures contracts. At the period end, the value of securities pledged
amounted to $3,979,000.
OTHER INFORMATION
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 89.8%
Japan 2.8
United Kingdom 2.4
Others (individually less than 1%) 5.0
TOTAL 100.0%
INCOME TAX INFORMATION
At October 31, 1995, the aggregate cost of investment securities for income
tax purposes was $988,185,000. Net unrealized appreciation aggregated
$140,510,000, of which $158,141,000 related to appreciated investment
securities and $17,631,000 related to depreciated investment securities.
The fund hereby designates $17,160,000 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 AMOUNT) OCTOBER 31, 1995
ASSETS
Investment in securities, at value (including repurchase $ 1,128,695
agreements of $200,775) (cost $987,935) -
See accompanying schedule
Receivable for investments sold 35,092
Receivable for fund shares sold 14,756
Dividends receivable 978
Other receivables 107
TOTAL ASSETS 1,179,628
LIABILITIES
Payable for investments purchased $ 34,132
Payable for fund shares redeemed 8,656
Accrued management fee 679
Payable for daily variation on futures contracts 828
Other payables and accrued expenses 335
TOTAL LIABILITIES 44,630
NET ASSETS $ 1,134,998
Net Assets consist of:
Paid in capital $ 869,859
Undistributed net investment income 6,897
Accumulated undistributed net realized gain (loss) on 118,271
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 139,971
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 46,811 shares outstanding $ 1,134,998
NET ASSET VALUE, offering price and redemption price per $24.25
share ($1,134,998 (divided by) 46,811 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31, 1995
INVESTMENT INCOME $ 8,346
Dividends
Interest 8,711
TOTAL INCOME 17,057
EXPENSES
Management fee $ 5,264
Basic fee
Performance adjustment 763
Transfer agent fees 2,159
Accounting fees and expenses 409
Non-interested trustees' compensation 9
Custodian fees and expenses 86
Registration fees 110
Audit 29
Legal 8
Miscellaneous 8
Total expenses before reductions 8,845
Expense reductions (258) 8,587
NET INVESTMENT INCOME 8,470
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities 116,669
Foreign currency transactions 1
Futures contracts 7,918 124,588
Change in net unrealized appreciation (depreciation) on:
Investment securities 100,447
Assets and liabilities in foreign currencies (6)
Futures contracts (788) 99,653
NET GAIN (LOSS) 224,241
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 232,711
FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 8,470 $ 7,152
Net investment income
Net realized gain (loss) 124,588 36,860
Change in net unrealized appreciation (depreciation) 99,653 (22,969)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 232,711 21,043
FROM OPERATIONS
Distributions to shareholders (6,170) (8,458)
From net investment income
From net realized gain (33,320) (30,736)
TOTAL DISTRIBUTIONS (39,490) (39,194)
Share transactions 739,878 823,786
Net proceeds from sales of shares
Reinvestment of distributions 38,745 38,406
Cost of shares redeemed (648,629) (631,684)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 129,994 230,508
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 323,215 212,357
NET ASSETS
Beginning of period 811,783 599,426
End of period (including undistributed net investment $ 1,134,998 $ 811,783
income of $6,897 and $4,515, respectively)
OTHER INFORMATION
Shares
Sold 35,180 42,751
Issued in reinvestment of distributions 2,220 2,080
Redeemed (32,323) (32,841)
Net increase (decrease) 5,077 11,990
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,
1995 1994 B 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, $ 19.45 $ 20.15 $ 16.77 $ 15.19 $ 9.80
beginning of period
Income from Investment
Operations
Net investment income .19 .16 .19 .16 .12
Net realized and unrealized 5.57 .44 3.61 1.97 5.30
gain (loss)
Total from investment 5.76 .60 3.80 2.13 5.42
operations
Less Distributions (.15) (.28) (.10) (.08) (.03)
From net investment income
From net realized gain (.81) (1.02) (.32) (.47) -
Total distributions (.96) (1.30) (.42) (.55) (.03)
Net asset value, end of period $ 24.25 $ 19.45 $ 20.15 $ 16.77 $ 15.19
TOTAL RETURN A 31.54% 3.32% 23.09% 14.63% 55.43%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,134,998 $ 811,783 $ 599,426 $ 260,980 $ 98,737
(000 omitted)
Ratio of expenses to average 1.03% 1.12% 1.11% 1.22% 1.43%
net assets
Ratio of expenses to average 1.00% 1.09% 1.10% 1.22% 1.43%
net assets after expense
reductions
Ratio of net investment income .99% 1.01% 1.52% 1.43% 1.20%
to average net assets
Portfolio turnover rate 220% 187% 192% 268% 317%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
B 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, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFACTIONS RELATED TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Stock Selector (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 of their purchase date are valued at
amortized cost or original cost plus accrued interest, both of which
approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments
are translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING POLICIES. - CONTINUED
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.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for litigation
proceeds, futures and options transactions, foreign currency transactions,
passive foreign investment companies (PFIC), partnerships, non-taxable
dividends and losses deferred due to wash sales. The fund also utilized
earnings and profits distributed to shareholders on redemption of shares as
a part of the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences 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.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash
2. OPERATING POLICIES. - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
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, and are collateralized by U.S. Treasury or
Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
FUTURES CONTRACTS AND OPTIONS.
The fund may use futures and options contracts to manage its exposure to
the stock and bond markets and to fluctuations in interest rates and
currency values. Buying futures, writing puts, and buying calls tend to
increase the fund's exposure to the underlying instrument. Selling futures,
buying puts, and writing calls tend to decrease the fund's exposure to the
underlying instrument, or hedge other fund investments. Futures contracts
involve, to varying degrees, risk of loss in excess of the futures
variation margin reflected in the Statement of Assets and Liabilities. The
underlying face amount at value is shown in the schedule of investments
under the caption "Futures Contracts." This amount reflects each contract's
exposure to the underlying instrument at period end. Losses may arise from
changes in the value of the underlying instruments, if there is an illiquid
secondary market for the contracts, or if the counterparties do not perform
under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,627,017,000 and $1,586,752,000, respectively.
The market value of futures contracts opened and closed during the period
amounted to $1,470,558,000 and $1,340,483,000, 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
MANAGEMENT FEE - CONTINUED
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 .2700% to .5200% for the
period. In the event that these rates were lower than the contractual rates
in effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The annual
individual fund fee rate is .30%. The basic fee is subject to a performance
adjustment (up to a maximum of (plus/minus) .20%) based on the fund's
investment performance as compared to the appropriate index over a
specified period of time. For the period, the management fee was equivalent
to an annual rate of .70% of average net assets after the performance
adjustment.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
During the period November 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number of accounts and the number of transactions
made by shareholders. Effective January 1, 1995, the Board of Trustees
approved a revised transfer agent contract pursuant to which 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.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The 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 $227,000 for the period.
5. 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
$258,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Capital Trust and the Shareholders of Fidelity
Stock Selector:
We have audited the accompanying statement of assets and liabilities of
Fidelity Capital Trust: Fidelity Stock Selector, including the schedule of
portfolio investments, as of October 31, 1995, 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 October 31, 1995 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 Capital Trust: Fidelity Stock Selector as of October 31, 1995,
the results of its operations for the year then ended, the changes in its
net assets for each of the two years in the period then ended, and the
financial highlights for each of the five years in the period then ended,
in conformity with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 4, 1995
DISTRIBUTIONS
The Board of Trustees of Fidelity Stock Selector voted to pay on December
11, 1995, to shareholders of record at the opening of business on December
8, 1995, a distribution of $2.08 derived from capital gains realized from
sales of portfolio securities and a dividend of $.20 from net investment
income.
A total of 4.55% 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.
A total of 100% of the dividends distributed during the fiscal year
qualifies for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of these applicable
percentages for use in preparing 1995 income tax returns.
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)(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)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 East Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, 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
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
7401 Wisconsin Avenue
Bethesda, MD
1 West Pennsylvania Ave.
Towson, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
44 Mall Road
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
29155 Northwestern Hwy.
Southfield, MI
MINNESOTA
7600 France Avenue South
Edina, MN
MISSOURI
700 West 47th Street
Kansas City, MO
8885 Ladue Road
Ladue, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the
Americas
New York, NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, OH
1903 East Ninth Street
Cleveland, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
2701 Drexel Drive
Houston, TX
1010 Lamar Street
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
215 South State Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
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
Bradford F. Lewis, 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 *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty
Growth Company Fund
Large Cap Stock Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)FIDELITY
DISCIPLINED EQUITY
FUND
ANNUAL REPORT
OCTOBER 31, 1995
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 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 24 Notes to the financial statements.
REPORT OF INDEPENDENT 28 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 29
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 RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although the markets have been fairly positive this year, no one can
predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
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, as we witnessed last year. 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 of change in value, the average annual
percentage change, or the growth of a hypothetical $10,000 investment. A
fund's total return includes changes in 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 OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Disciplined Equity 26.98% 159.07% 217.49%
S&P 500(registered trademark) 26.44% 121.65% 159.34%
Average Growth Fund 22.14% 125.83% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, five years, or since the fund
started on December 28, 1988. 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 Composite Index of 500 Stocks - a common proxy for the
U.S. stock market. 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 558 growth funds with similar objectives tracked by
Lipper Analytical Services over the past 12 months. Both benchmarks include
reinvested dividends and capital gains, if any, and exclude the effects of
sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1995 PAST 1 PAST 5 LIFE OF
YEAR YEARS FUND
Disciplined Equity 26.98% 20.97% 18.38%
S&P 500 26.44% 17.26% 14.93%
Average Growth Fund 22.14% 17.24% n/a
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. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking the 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 LIFE OF FUND
Disciplined Standard &
12/28/88 10000.00 10000.00
12/31/88 10110.00 10035.74
01/31/89 10980.00 10770.35
02/28/89 10970.00 10502.17
03/31/89 11330.00 10746.87
04/30/89 11920.00 11304.64
05/31/89 12360.00 11762.47
06/30/89 12150.00 11695.43
07/31/89 13130.00 12751.52
08/31/89 13610.00 13001.45
09/30/89 13680.00 12948.15
10/31/89 13250.00 12647.75
11/30/89 13440.00 12905.76
12/31/89 13784.10 13215.50
01/31/90 12825.74 12328.74
02/28/90 13131.60 12487.78
03/31/90 13661.76 12818.71
04/30/90 13274.34 12498.24
05/31/90 14497.78 13716.82
06/30/90 14650.71 13623.55
07/31/90 14599.73 13579.95
08/31/90 13182.58 12352.32
09/30/90 12428.12 11750.77
10/31/90 12254.80 11700.24
11/30/90 13233.55 12456.07
12/31/90 13676.69 12803.60
01/31/91 14479.98 13361.83
02/28/91 15637.96 14317.20
03/31/91 16013.52 14663.68
04/30/91 16159.57 14698.87
05/31/91 16785.50 15333.87
06/30/91 15909.20 14631.57
07/31/91 16702.05 15313.41
08/31/91 17098.47 15676.33
09/30/91 17035.88 15414.54
10/31/91 17463.60 15621.09
11/30/91 16806.37 14991.56
12/31/91 18603.46 16706.60
01/31/92 18983.82 16395.86
02/29/92 19444.88 16609.00
03/31/92 19202.82 16285.13
04/30/92 19444.88 16763.91
05/31/92 19479.46 16846.05
06/30/92 19283.51 16595.05
07/31/92 20205.61 17273.78
08/31/92 19721.51 16919.67
09/30/92 19848.30 17119.32
10/31/92 19905.93 17179.24
11/30/92 20620.56 17765.05
12/31/92 21063.98 17983.56
01/31/93 21471.19 18134.62
02/28/93 21335.45 18381.26
03/31/93 21989.46 18769.10
04/30/93 21261.41 18314.89
05/31/93 21915.42 18805.73
06/30/93 22310.29 18860.26
07/31/93 22199.24 18784.82
08/31/93 23211.10 19496.77
09/30/93 23939.14 19346.64
10/31/93 24037.86 19747.12
11/30/93 23297.48 19559.52
12/31/93 23999.42 19796.19
01/31/94 25174.30 20469.26
02/28/94 24870.68 19914.54
03/31/94 23629.79 19046.27
04/30/94 24329.44 19290.06
05/31/94 24184.23 19606.42
06/30/94 23497.78 19126.06
07/31/94 24078.62 19753.40
08/31/94 25306.31 20563.29
09/30/94 24580.26 20059.48
10/31/94 25002.69 20510.82
11/30/94 24250.23 19763.82
12/31/94 24721.07 20056.92
01/31/95 24335.23 20576.99
02/28/95 25534.08 21378.88
03/31/95 26167.95 22009.77
04/30/95 26843.16 22657.96
05/31/95 27669.96 23563.59
06/30/95 28910.14 24110.98
07/31/95 30660.18 24910.50
08/31/95 30770.42 24973.02
09/30/95 32024.39 26026.88
10/31/95 31762.57 25933.97
$10,000 OVER LIFE OF FUND Let's say you invested $10,000 in Fidelity
Disciplined Equity Fund on December 28, 1988, when the fund started. As the
chart shows, by October 31, 1995, the value of your investment would have
grown to $31,749 - a 217.49% 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
$25,934 - a 159.34% 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
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post robust returns
for the 12 months ended October
31, 1995. The Standard & Poor's
Composite Index of 500 Stocks
finished the 12-month period with
a total return of 26.44% - well
above its historical annual
average of roughly 12%. With
inflation posing little threat,
interest rates fell during the first
half of 1995. The Federal
Reserve Board cut the federal
funds rate - the rate banks
charge each other for overnight
loans - by 0.25% on July 6 to
5.75%. Large-capitalization
stocks led the rally. Technology
companies - whose goods and
services benefited from both
corporate and consumer demand
- - posted the strongest earnings
growth and stock price gains.
Lower interest rates and
continued merger and acquisition
activity helped financial stocks
perform especially well. In June,
the Dow Jones Industrial Average
closed above 4500 for the first
time. Returns from foreign
markets suffered as investors
brought capital back to the U.S.
The Morgan Stanley Emerging
Markets Free Index was down
19.43% for the 12 months ended
October 31. The Morgan Stanley
EAFE (Europe, Australia, Far
East) Index was down 0.37% for
the year ended October 31.
European markets have fared
well through the first 10 months of
1995, while the Japanese market
has struggled through much of
the year.
An interview with Brad Lewis,
Portfolio Manager of Fidelity
Disciplined Equity Fund
Q. HOW DID THE FUND DO, BRAD?
A. The fund performed quite well. For the 12 months ended October 31, 1995,
Disciplined Equity returned 26.98% while the average growth fund returned
22.14%, according to Lipper Analytical Services.
Q. WHAT FACTORS CONTRIBUTED TO PERFORMANCE DURING THE PAST SIX MONTHS?
A. Disciplined Equity seeks to outperform the S&P 500 index by having
similar industry weightings, but with different individual stocks. For the
12 months ended October 31, 1995, the fund achieved its goal since the S&P
slightly lagged the fund, returning 26.44%. Basically, the fund's
performance during the period was due to good stock choices in a market
where big cap stocks have done quite well. Broader market averages such as
the Russell 2000 and Value Line Index have substantially lagged Disciplined
Equity's return. Beneficial to the fund was the fact that the stock market
has continued its rally, especially in technology, financial and health
care stocks - sectors in which the fund was heavily invested.
Q. DID YOU MAKE ANY SIGNIFICANT CHANGES TO THE FUND'S STOCK SELECTION
METHODOLOGY DURING THE PERIOD?
A. Not really. Though I'm always fine tuning, I haven't made any major
adjustments since the fund began using a new artificial intelligence
algorithm in place of the neural network in February 1995. I've tried to
design a process to accurately forecast stock returns. The database now
consists of more than 15,000 stock observations and the algorithms measure
cause-and-effect relationships. I use artificial intelligence to analyze
seven to 10 years of data on a particular stock and the computer reaches
some conclusions about how it's behaved in a variety of circumstances and
market conditions. Then I reconcile this information with current data to
determine expected returns in the future.
Q. THOUGH TECHNOLOGY IS STILL A FAIRLY LARGE SECTOR HOLDING IN THE FUND, IT
DROPPED FROM 15.6% OF INVESTMENTS SIX MONTHS AGO TO 11.5% AS OF OCTOBER 31,
1995. WHY DID YOU REDUCE THE FUND'S TECHNOLOGY HOLDING?
A. At the end of July 1995, my top-down econometric models, which I use to
help me make purchase and sale decisions, turned cautious on the fund's
investment mix. In order to revise the fund's investments to be consistent
with the models, I began cutting back on technology stocks. As a result,
the fund benefited accordingly when technology stocks suffered a setback in
September.
Q. WHAT OTHER STRATEGIC CHANGES DID YOU MAKE TO THE FUND DURING THE PERIOD?
A. While reducing the fund's investment in technology, I increased its
holdings in market sectors such as health and finance. The quantitative
models that I use indicated that larger capitalized companies with stable
earnings growth would have the best prospects going forward. As a result,
the fund is more defensively positioned than it was six months ago.
Q. WHICH PARTICULAR STOCKS PERFORMED WELL?
A. Micron Technology was one of the fund's largest holdings before I
reduced it considerably in August. Between May and October 1995, the stock
price rose more than 70%, contributing positively to the fund's
performance. Another strong contributor was Schering-Plough, which
increased by about 42% during the period.
Q. THE FUND HAS NEARLY 10% OF ITS ASSETS INVESTED IN S&P 500 FUTURES.
WHAT'S YOUR STRATEGY?
A. When the market looks vulnerable - as the models indicated it did
towards the end of the period - I like to have liquidity in the fund.
However, with the market doing well, I still want to participate rather
than holding cash. With futures I get the best of both worlds. Having 15%
to 30% of the fund in cash would hurt returns if the markets continue to go
up since overbought markets can still appreciate. Therefore, I've found
that futures, which are highly liquid, are an effective way to get returns
that mirror the market while maintaining liquidity
in the fund. Of course, futures are not without risk and can be vulnerable
to shifts in the market.
Q. WHAT'S AHEAD FOR THE NEXT
SIX MONTHS?
A. Well, I think it's highly unlikely that we'll see the kind of returns in
the next six months that we have in the past six months. However, I'll
continue to manage the fund with an eye toward capitalizing on trends in
the market by seeking to own stocks with better-than-average prospects
priced at attractive valuations. Investors should know, however, that no
method is foolproof and that anything can happen in the short term.
FUND FACTS
GOAL: to increase the value of
the fund's shares by investing
mainly in common stocks that
are determined through both
technical and fundamental
analysis, to be undervalued
compared to others in their
industries
START DATE: September 28,
1990
SIZE: as of October 31, 1995,
more than $1.1 billion
MANAGER: Bradford Lewis,
since 1990; manager,
Fidelity Disciplined Equity,
since 1988, and Fidelity
Small Cap Stock, since
1993; joined Fidelity in 1985
(checkmark)
BRAD LEWIS ON INVESTING IN
QUANT FUNDS:
"Most equity fund managers
make choices based on
research derived from a
traditional research department.
Quantitative funds are different.
The quant funds at Fidelity
are driven by a unique
methodology, which often
drives them to invest in
different stocks than you
might find in a traditionally
managed fund. Investors who
own quantitative funds in their
portfolios will derive the
benefits of style
diversification. By owning
funds with differing
investment methodologies,
portfolio risk can be lowered.
"In addition, since computer
models are dispassionate,
investors in quant funds get a
certain consistency in stock
selection. A quant fund is more
likely to ride out temporary
shifts in the market than to
react to them."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Coca-Cola Company (The) 3.3 0.9
Mobil Corp. 3.2 1.8
Citicorp 2.9 0.0
Pfizer, Inc. 2.9 1.7
Aetna Life & Casualty Co. 2.5 0.0
Bank of Boston Corp. 2.4 1.0
Philip Morris Companies, Inc. 2.4 0.6
NIKE, Inc., Class B 2.3 0.0
Amgen, Inc. 2.2 0.0
Schering-Plough Corp 2.1 1.9
TOP FIVE INDUSTRIES AS OF OCTOBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Finance 17.4 7.6
Health 14.5 8.4
Utilities 11.5 7.5
Technology 11.5 15.6
Nondurables 8.9 4.1
ASSET ALLOCATION
AS OF OCTOBER 31, 1995 AS OF APRIL 30, 1995
Row: 1, Col: 1, Value: 6.1
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 4, Value: 53.9
Row: 1, Col: 1, Value: 23.5
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 4, Value: 36.5
Stocks and
equity futures 93.9%
Short-term
investments 6.1%
Stocks 76.5%
Short-term
investments 23.5%
INVESTMENTS OCTOBER 31, 1995
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 84.3%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 2.1%
AEROSPACE & DEFENSE - 2.1%
Boeing Co. 471,900 $ 30,968
McDonnell Douglas Corp. 148,400 12,132
43,100
SHIP BUILDING & REPAIR - 0.0%
General Dynamics Corp. 21,200 1,165
TOTAL AEROSPACE & DEFENSE 44,265
BASIC INDUSTRIES - 3.8%
CHEMICALS & PLASTICS - 0.4%
Engelhard Corp. 156,700 3,898
Goodrich (B.F.) Company 41,400 2,727
NL Industries, Inc. (a) 21,700 282
Sealed Air Corp. (a) 23,400 617
7,524
METALS & MINING - 2.0%
Aluminum Co. of America 247,800 12,638
Phelps Dodge Corp. 445,800 28,253
Reynolds Metals Co. 20,100 1,013
41,904
PAPER & FOREST PRODUCTS - 1.4%
Bowater, Inc. 175,000 7,744
Champion International Corp. 311,100 16,644
Chesapeake Corp. 1,000 31
Consolidated Papers, Inc. 60,400 3,458
Potlatch Corp. 19,300 813
28,690
TOTAL BASIC INDUSTRIES 78,118
CONSTRUCTION & REAL ESTATE - 0.5%
BUILDING MATERIALS - 0.3%
ACX Technologies, Inc. (a) 87,900 1,362
USG Corp. (a) 167,200 4,870
6,232
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
CONSTRUCTION - 0.0%
Blount, Inc. Class A 9,000 $ 390
REAL ESTATE - 0.2%
Stewart Enterprises, Inc. Class A 96,000 3,240
TOTAL CONSTRUCTION & REAL ESTATE 9,862
DURABLES - 2.7%
AUTOS, TIRES, & ACCESSORIES - 0.1%
Danaher Corp. 68,500 2,124
Transpro, Inc. (a) 36,600 403
2,527
CONSUMER DURABLES - 0.0%
Department 56 Inc. (a) 7,400 336
TEXTILES & APPAREL - 2.6%
Jones Apparel Group, Inc. (a) 147,800 5,062
NIKE, Inc. Class B 829,800 47,091
Nine West Group, Inc. (a) 25,000 1,113
53,266
TOTAL DURABLES 56,129
ENERGY - 6.2%
ENERGY SERVICES - 0.1%
Smith International, Inc. (a) 145,700 2,331
OIL & GAS - 6.1%
Atlantic Richfield Co. 290,000 30,958
Enron Oil & Gas Co. 4,200 84
Exxon Corp. 260,200 19,873
Kerr-McGee Corp. 61,900 3,412
Mobil Corp. 659,500 66,445
Occidental Petroleum Corp. 278,800 5,994
126,766
TOTAL ENERGY 129,097
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - 17.4%
BANKS - 6.5%
Bank of Boston Corp. 1,143,438 $ 50,883
Citicorp 931,000 60,399
Comerica, Inc. 121,200 4,075
Meridian Bancorp, Inc. 92 4
Michigan National Corp. 38,000 4,171
NationsBank Corp. 200,700 13,196
Star Banc Corp. 2,600 144
Union Bank of San Francisco 68,000 3,409
136,281
CREDIT & OTHER FINANCE - 2.7%
A T & T Capital Corp. 25,400 1,016
Green Tree Financial Corp. 1,089,800 29,016
Mercury Finance Co. 747,000 9,587
Money Store, Inc. 239,600 9,584
United Companies Financial Corp. 245,800 6,944
56,147
INSURANCE - 6.8%
Aetna Life & Casualty Co. 750,000 52,781
Allstate Corp. 590,699 21,708
American Financial Group, Inc. 130,000 3,640
American General Corp. 258,300 8,492
American International Group, Inc. 236,000 19,913
CIGNA Corp. 146,600 14,532
CNA Financial Corp. (a) 26,000 2,964
HealthCare COMPARE Corp. (a) 170,200 6,297
MGIC Investment Corp. 90,500 5,147
Prudential Reinsurance Holdings, Inc. (a) 24,400 497
TIG Holdings, Inc. 212,400 5,390
Transatlantic Holdings, Inc. 24,700 1,664
143,025
SECURITIES INDUSTRY - 1.4%
Donaldson Lufkin & Jenrette, Inc. 2,100 62
Franklin Resources, Inc. 29,200 1,482
Merrill Lynch & Co., Inc. 37,000 2,054
Price (T. Rowe) Associates, Inc. 136,000 6,766
Schwab (Charles) Corp. 783,500 17,923
28,287
TOTAL FINANCE 363,740
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - 14.5%
DRUGS & PHARMACEUTICALS - 8.9%
Amgen, Inc. (a) 974,000 $ 46,752
Bristol-Myers Squibb Co. 76,800 5,856
Depotech Corp. (a) 1,000 15
Genzyme Corp. 97,500 5,679
Merck & Co., Inc. 431,000 24,783
Myriad Genetics (a) 2,000 54
Pfizer, Inc. 1,044,900 59,951
Schering-Plough Corp. 812,200 43,554
186,644
MEDICAL EQUIPMENT & SUPPLIES - 4.7%
Baxter International, Inc. 367,500 14,195
Biomet, Inc. (a) 7,900 131
Boston Scientific Corp. (a) 597,100 25,153
Cardinal Health, Inc. 77,500 3,982
Conmed Corp. (a) 43,200 1,512
Guidant Corp. 455,700 14,582
Johnson & Johnson 37,800 3,081
Medtronic, Inc. 322,100 18,601
Nellcor, Inc. (a) 40,000 2,300
St. Jude Medical, Inc. (a) 278,600 14,835
UroMed Corp. (a) 35,000 372
98,744
MEDICAL FACILITIES MANAGEMENT - 0.9%
Health Management Associates, Inc. Class A (a) 344,850 7,414
Oxford Health Plans, Inc. (a) 135,300 10,587
Sterling House Corp. (a) 4,300 53
Total Renal Care Holdings, Inc. (a) 2,700 55
18,109
TOTAL HEALTH 303,497
INDUSTRIAL MACHINERY & EQUIPMENT - 1.5%
ELECTRICAL EQUIPMENT - 0.2%
Allen Group, Inc. (The) 96,000 2,352
Amphenol Corp. Class A (a) 20,700 448
Holophane Corp. (a) 30,000 810
3,610
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - 1.3%
Dover Corp. 390,800 $ 15,437
Illinois Tool Works, Inc. 59,900 3,482
NN Ball & Roller, Inc. 40,000 830
Parker-Hannifin Corp. 210,000 7,088
26,837
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 30,447
MEDIA & LEISURE - 1.5%
ENTERTAINMENT - 0.0%
King World Productions, Inc. (a) 500 17
LEISURE DURABLES & TOYS - 0.2%
Mattel, Inc. 157,600 4,531
LODGING & GAMING - 0.6%
Grand Casinos, Inc. (a) 293,700 11,675
PUBLISHING - 0.1%
Banta Corp. 5,000 216
Harcourt General, Inc. 48,700 1,930
2,146
RESTAURANTS - 0.6%
Applebee's International, Inc. 279,200 7,853
Lone Star Steakhouse Saloon (a) 132,900 5,133
12,986
TOTAL MEDIA & LEISURE 31,355
NONDURABLES - 8.9%
BEVERAGES - 3.3%
Coca-Cola Company (The) 948,300 68,159
FOODS - 1.8%
CPC International, Inc. 209,200 13,886
Hershey Foods Corp. 88,700 5,300
IBP, Inc. 319,200 19,112
38,298
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - 0.9%
Clorox Co. 21,400 $ 1,535
Gillette Co. 354,500 17,149
18,684
TOBACCO - 2.9%
American Brands, Inc. 263,200 11,285
Philip Morris Companies, Inc. 584,100 49,356
60,641
TOTAL NONDURABLES 185,782
RETAIL & WHOLESALE - 1.8%
APPLIANCE STORES - 0.1%
CellStar Corp. (a) 62,300 1,729
DRUG STORES - 0.9%
General Nutrition Companies, Inc. (a) 754,700 18,773
GENERAL MERCHANDISE STORES - 0.2%
Consolidated Stores Corp. (a) 156,900 3,628
GROCERY STORES - 0.6%
Safeway, Inc. (a) 246,900 11,666
RETAIL & WHOLESALE, MISCELLANEOUS - 0.0%
Viking Office Products, Inc. (a) 20,700 921
TOTAL RETAIL & WHOLESALE 36,717
SERVICES - 0.1%
Cintas Corp. 10,000 420
Robert Half International, Inc. (a) 67,000 2,446
2,866
TECHNOLOGY - 11.5%
COMMUNICATIONS EQUIPMENT - 0.6%
Aspect Telecommunications Corp. (a) 75,600 2,599
Microcom, Inc. (a) 45,000 984
Network Equipment Technologies (a) 180,000 5,873
Symmetricom, Inc. (a) 169,400 3,144
12,600
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - 0.9%
Cooper & Chyan Technology, Inc. (a) 1,200 $ 17
DST Systems, Inc. (a) 10,500 221
Equifax Inc. 13,500 527
Softkey International, Inc. (a) 500,000 15,750
Structural Dynamics Research Corp. (a) 171,500 3,130
19,645
COMPUTERS & OFFICE EQUIPMENT - 1.5%
Auspex Systems, Inc. (a) 70,000 989
Dell Computer Corp. (a) 145,000 6,760
Read-Rite Corp. (a) 649,000 22,634
30,383
ELECTRONIC INSTRUMENTS - 3.8%
Applied Materials, Inc. (a) 146,200 7,328
Electro Scientific Industries, Inc. (a) 89,000 2,759
KLA Instruments Corp. (a) 889,200 38,013
Lam Research Corp. (a) 365,000 22,219
Novellus System, Inc. (a) 103,900 7,156
Teradyne, Inc. (a) 61,400 2,049
79,524
ELECTRONICS - 4.7%
Cirrus Logic, Inc. (a) 687,900 28,978
Electroglas, Inc. (a) 69,900 4,910
Kemet Corp. (a) 244,100 8,421
Micron Technology, Inc. 264,900 18,709
S-3, Inc. (a) 572,000 9,796
Speedfam International, Inc. (a) 11,100 182
Tegal Corp. (a) 8,000 102
Tencor Instruments (a) 492,900 21,010
Vishay Intertechnology, Inc. 174,100 6,137
98,245
TOTAL TECHNOLOGY 240,397
TRANSPORTATION - 0.3%
AIR TRANSPORTATION - 0.1%
Comair Holdings, Inc. 72,400 2,032
Valuejet, Inc. (a) 300 16
2,048
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
RAILROADS - 0.2%
Burlington Northern Santa Fe Corp. 60,200 $ 5,049
TOTAL TRANSPORTATION 7,097
UTILITIES - 11.5%
ELECTRIC UTILITY - 4.9%
Allegheny Power System, Inc. 2,200 58
Atlantic Energy, Inc. 3,900 76
Boston Edison Co. 162,000 4,435
Carolina Power & Light Co. 16,000 524
Centerior Energy Corp. 661,800 6,618
Central & South West Corp. 90,200 2,413
DQE, Inc. 20,300 558
DPL, Inc. 30,800 732
Detroit Edison Co. 143,600 4,847
Entergy Corp. 268,000 7,638
General Public Utilities Corp. 75,400 2,356
Hawaiian Electric Industries, Inc. 43,000 1,677
Illinova Corp. 404,000 11,464
Minnesota Power & Light Co. 5,800 166
New York State Electric & Gas Corp. 13,800 348
Northeast Utilities 253,200 6,267
Ohio Edison Co. 426,000 9,745
Pacific Gas & Electric Co. 562,800 16,532
Pinnacle West Capital Corp. 308,400 8,481
Portland General Corp. 193,000 5,235
Southwestern Public Service Co. 115,000 3,781
Texas Utilities Co. 15,500 570
Unicom Corp. 215,600 7,061
101,582
GAS - 0.0%
Atlanta Gas Light Co. 17,900 691
TELEPHONE SERVICES - 6.6%
Ameritech Corp. 653,200 35,273
Bell Atlantic Corp. 109,100 6,941
BellSouth Corp. 399,300 30,546
Cincinnati Bell, Inc. 76,900 2,259
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
GTE Corp. 227,000 $ 9,364
LCI International, Inc. (a) 216,200 3,892
NYNEX Corp. 824,500 38,752
Pacific Telesis Group 382,200 11,609
138,636
TOTAL UTILITIES 240,909
TOTAL COMMON STOCKS
(Cost $1,567,631) 1,760,278
U.S. TREASURY OBLIGATIONS - 6.4%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) AMOUNT (B) (000S)
U.S. Treasury Bills, yield at date of purchase
5.25% to 5.41%, 11/30/95 to 12/07/95 (b)
(Cost $ 133,196) $ 133,800 133,260
REPURCHASE AGREEMENTS - 9.3%
MATURITY
AMOUNT
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88%, dated
10/31/95 due 11/1/95 $ 194,739 194,707
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,895,534) $ 2,088,245
FUTURES CONTRACTS
AMOUNTS IN THOUSANDS EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
680 S&P 500 Contracts Dec.1995 $ 198,509 $ (1,244)
THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 9.6%
LEGEND
6. Non-income producing
7. A portion of the securities were pledged to cover margin requirement for
futures contracts. At the period end, the value of securities pledged
amounted to $3,984,000.
INCOME TAX INFORMATION
At October 31,1995, the aggregate cost of investment securities for income
tax purposes was $1,896,303,000. Net unrealized appre- ciation aggregated
$191,942,000, of which $225,348,000 related to appreciated investment
securities and $33,406,000 related to depreciated investment securities.
The fund hereby designates approximately $11,880,000 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) OCTOBER 31, 1995
ASSETS
Investment in securities, at value (including repurchase $ 2,088,245
agreements of $194,707) (cost $1,895,534) -
See accompanying schedule
Receivable for investments sold 11,379
Receivable for fund shares sold 24,836
Dividends receivable 2,964
Other receivables 93
TOTAL ASSETS 2,127,517
LIABILITIES
Payable for investments purchased $ 27,194
Payable for fund shares redeemed 9,101
Accrued management fee 1,210
Payable for daily variation on futures contracts 1,286
Other payables and accrued expenses 687
TOTAL LIABILITIES 39,478
NET ASSETS $ 2,088,039
Net Assets consist of:
Paid in capital $ 1,656,876
Undistributed net investment income 21,870
Accumulated undistributed net realized gain (loss) on 217,826
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 191,467
investments
NET ASSETS, for 90,635 shares outstanding $ 2,088,039
NET ASSET VALUE, offering price and redemption price per $23.04
share ($2,088,039 (divided by) 90,635 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31, 1995
INVESTMENT INCOME $ 24,299
Dividends
Interest 16,851
TOTAL INCOME 41,150
EXPENSES
Management fee $ 9,198
Basic fee
Performance adjustment 982
Transfer agent fees 3,229
Accounting fees and expenses 601
Non-interested trustees' compensation 13
Custodian fees and expenses 63
Registration fees 288
Audit 32
Legal 9
Miscellaneous 14
Total expenses before reductions 14,429
Expense reductions (444) 13,985
NET INVESTMENT INCOME 27,165
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities 197,339
Futures contracts 25,822 223,161
Change in net unrealized appreciation (depreciation) on:
Investment securities 128,474
Futures contracts (1,244) 127,230
NET GAIN (LOSS) 350,391
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 377,556
FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
OCTOBER 31, OCTOBER 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 27,165 $ 12,778
Net investment income
Net realized gain (loss) 223,161 34,354
Change in net unrealized appreciation (depreciation) 127,230 (8,999)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 377,556 38,133
FROM OPERATIONS
Distributions to shareholders (14,996) (8,598)
From net investment income
From net realized gain (31,228) (42,587)
TOTAL DISTRIBUTIONS (46,224) (51,185)
Share transactions 1,143,822 606,456
Net proceeds from sales of shares
Reinvestment of distributions 44,136 48,929
Cost of shares redeemed (513,551) (349,866)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 674,407 305,519
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,005,739 292,467
NET ASSETS
Beginning of period 1,082,300 789,833
End of period (including undistributed net investment $ 2,088,039 $ 1,082,300
income of $21,870 and $10,834, respectively)
OTHER INFORMATION
Shares
Sold 56,254 32,828
Issued in reinvestment of distributions 2,513 2,732
Redeemed (25,272) (18,967)
Net increase (decrease) 33,495 16,593
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED OCTOBER 31,
1995 1994 B 1993 1992 1991
SELECTED PER-SHARE DATA
Net asset value, beginning $ 18.94 $ 19.48 $ 17.27 $ 16.74 $ 12.02
of period
Income from Investment
Operations
Net investment income .30 .21 .19 .19 .29
Net realized and unrealized 4.57 .50 3.20 1.89 4.73
gain (loss)
Total from investment 4.87 .71 3.39 2.08 5.02
operations
Less Distributions (.25) (.21) (.19) (.23) (.30)
From net investment income
From net realized gain (.52) (1.04) (.99) (1.32) -
Total distributions (.77) (1.25) (1.18) (1.55) (.30)
Net asset value, end of period $ 23.04 $ 18.94 $ 19.48 $ 17.27 $ 16.74
TOTAL RETURN A 26.98% 4.01% 20.76% 13.99% 42.50%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,088 $ 1,082 $ 790 $ 341 $ 154
(in millions)
Ratio of expenses to average .96% 1.07% 1.11% 1.16% 1.19%
net assets
Ratio of expenses to average net .93% 1.05% 1.09% 1.16% 1.19%
assets after expense
reductions
Ratio of net investment income 1.81% 1.43% 1.39% 1.79% 2.05%
to average net assets
Portfolio turnover rate 221% 139% 279% 255% 210%
</TABLE>
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D 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, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1995
8. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Disciplined Equity 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 of their purchase date are valued at
amortized cost or original cost plus accrued interest, both of which
approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions. Net realized gains and losses on foreign currency
transactions represent net gains and losses from sales and maturities of
forward currency contracts, disposition of foreign currencies, currency
gains and losses realized between the trade and settlement dates on
securities transactions, and the difference between the amount of net
investment income accrued and the U.S. dollar amount actually received. The
effects of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or loss
on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for litigation
proceeds, futures and options transactions, partnerships 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 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.
9. OPERATING POLICIES.
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, and are collateralized
by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency Securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the stock market. Buying futures,
writing puts, and buying calls tend to increase
2. OPERATING POLICIES - CONTINUED
FUTURES CONTRACTS AND OPTIONS - CONTINUED
the fund's exposure to the underlying instrument. Selling futures, buying
puts, and writing calls tend to decrease the fund's exposure to the
underlying instrument, or hedge other fund investments. Futures contracts
involve, to varying degrees, risk of loss in excess of the futures
variation margin reflected in the Statement of Assets and Liabilities. The
underlying face amount at value is shown in the schedule of investments
under the caption "Futures Contracts." This amount reflects each contract's
exposure to the underlying instrument at period end. Losses may arise from
changes in the value of the underlying instruments, if there is an illiquid
secondary market for the contracts, or if the counterparties do not perform
under the contracts' terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
10. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $3,246,328,000 and $2,708,400,000, respectively.
The market value of futures contracts opened and closed during the period
amounted to $2,840,933,000 and $2,667,002,000, respectively.
11. 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 .2700% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. The
basic fee is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on the fund's investment performance as compared
to the appropriate index over a specified period of time. For the period,
the management fee was equivalent to an annual rate of .68% of average net
assets after the performance adjustment.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
During the period November 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number of accounts and the number of transactions
made by shareholders.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
Effective January 1, 1995, the Board of Trustees approved a revised
transfer agent contract pursuant to which 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.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The 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 $424,000 for the period.
12. 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
$444,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Capital Trust and the Shareholders of Fidelity
Disciplined Equity Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Capital Trust: Fidelity Disciplined Equity Fund, including the
schedule of portfolio investments, as of October 31, 1995, 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 October 31, 1995, 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 Capital Trust: Fidelity Disciplined Equity Fund, as of October
31, 1995, the results of its operations for the year then ended, the
changes in its net assets for each of the two years in the period then
ended, and the financial highlights for each of the five years in the
period then ended, in conformity with generally accepted accounting
principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 4, 1995
DISTRIBUTIONS
The Board of Trustees of Fidelity Disciplined Equity Fund voted to pay on
December 11, 1995, to shareholders of record at the opening of business on
December 8, 1995, a distribution of $2.23 derived from capital gains
realized from sales of portfolio securities and a dividend of $.30 from net
investment income.
A total of 1.8% 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.
A total of 57% of the dividends distributed during the fiscal year
qualifies for the dividends-received deductions for corporate shareholders.
The fund will notify shareholders in January 1996 of these percentages for
use in preparing 1995 income tax returns.
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)(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)(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND
ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
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
Bradford F. Lewis, 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 *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty
Growth Company Fund
Large Cap Stock Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
