(2_FIDELITY_LOGOS)FIDELITY
VALUE
FUND
ANNUAL REPORT
OCTOBER 31, 1997
CONTENTS
PRESIDENT'S MESSAGE 3 NED JOHNSON ON INVESTING STRATEGIES.
PERFORMANCE 4 HOW THE FUND HAS DONE OVER TIME.
FUND TALK 6 THE MANAGER'S REVIEW OF FUND
PERFORMANCE, STRATEGY AND OUTLOOK.
INVESTMENT CHANGES 9 A SUMMARY OF MAJOR SHIFTS IN THE FUND'S
INVESTMENTS OVER THE PAST SIX MONTHS.
INVESTMENTS 10 A COMPLETE LIST OF THE FUND'S INVESTMENTS
WITH THEIR MARKET VALUES.
FINANCIAL STATEMENTS 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 32 THE AUDITORS' OPINION.
ACCOUNTANTS
DISTRIBUTIONS 33
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
To reduce expenses and demonstrate respect for our environment, we
have initiated a project through which we will begin eliminating
duplicate copies of most financial reports and prospectuses to most
households, even if they have more than one account in the fund. If
additional copies of financial reports, prospectuses or historical
account information are needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Although financial turmoil in Pacific Basin countries was a catalyst
for significant volatility in U.S. markets in late October, the
Standard & Poor's 500 Index remained up more than 25% year-to-date,
twice its historical annual average. Meanwhile, bond markets -
primarily influenced by a relatively steady flow of positive news on
the inflation front - continued to post moderate returns through the
first 10 months of 1997.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that there is no assurance that a money market fund will
achieve its goal of maintaining a stable net asset value of $1.00 per
share, and that these types of funds are neither insured nor
guaranteed by any agency of the U.S. government.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We are
available 24 hours a day, seven days a week to provide you the
information you need to make the investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY VALUE 24.31% 147.80% 380.99%
S&P 500 (REGISTERED TRADEMARK) 32.11% 147.49% 387.82%
CAPITAL APPRECIATION FUNDS AVERAGE 22.74% 119.38% 316.22%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the
Standard & Poor's 500 Index - a widely recognized, unmanaged index of
common stocks. To measure how the fund's performance stacked up
against its peers, you can compare it to the capital appreciation
funds average, which reflects the performance of mutual funds with
similar objectives tracked by Lipper Analytical Services, Inc. The
past one year average represents a peer group of 203 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED OCTOBER 31, 1997 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
FIDELITY VALUE 24.31% 19.90% 17.01%
S&P 500 32.11% 19.87% 17.16%
CAPITAL APPRECIATION FUNDS AVERAGE 22.74% 16.49% 14.50%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a slightly different figure than
that obtained by averaging the cumulative total returns and
annualizing the result.)
$10,000 OVER 10 YEARS
IMAHDR PRASUN SHR__CHT 19971031 19971111 103237 S00000000000001
Value S&P 500
00039 SP001
1987/10/31 10000.00 10000.00
1987/11/30 9247.98 9176.00
1987/12/31 9819.13 9874.29
1988/01/31 10190.39 10290.00
1988/02/29 11132.79 10769.52
1988/03/31 11061.40 10436.74
1988/04/30 11032.84 10552.59
1988/05/31 11009.04 10644.39
1988/06/30 11475.49 11132.97
1988/07/31 11523.08 11090.67
1988/08/31 11394.57 10713.58
1988/09/30 12222.75 11169.98
1988/10/31 12936.70 11480.51
1988/11/30 12394.10 11316.34
1988/12/31 12671.30 11514.37
1989/01/31 13170.59 12357.22
1989/02/28 12870.05 12049.53
1989/03/31 13417.81 12330.28
1989/04/30 14154.63 12970.22
1989/05/31 14610.29 13495.52
1989/06/30 15032.02 13418.59
1989/07/31 16432.94 14630.29
1989/08/31 16495.96 14917.05
1989/09/30 16185.72 14855.89
1989/10/31 15104.73 14511.23
1989/11/30 15473.14 14807.26
1989/12/31 15578.73 15162.63
1990/01/31 14170.79 14145.22
1990/02/28 14251.40 14327.69
1990/03/31 14568.45 14707.38
1990/04/30 14444.85 14339.69
1990/05/31 15379.90 15737.81
1990/06/30 14912.38 15630.80
1990/07/31 14772.66 15580.78
1990/08/31 13477.56 14172.28
1990/09/30 12977.80 13482.09
1990/10/31 12687.61 13424.11
1990/11/30 13262.61 14291.31
1990/12/31 13581.24 14690.04
1991/01/31 14302.56 15330.52
1991/02/28 15164.77 16426.66
1991/03/31 15463.45 16824.18
1991/04/30 15666.32 16864.56
1991/05/31 16539.80 17593.11
1991/06/30 15773.39 16787.34
1991/07/31 16545.44 17569.63
1991/08/31 16945.55 17986.03
1991/09/30 16815.94 17685.67
1991/10/31 17013.17 17922.66
1991/11/30 16043.89 17200.37
1991/12/31 17138.93 19168.09
1992/01/31 17847.72 18811.57
1992/02/29 18544.90 19056.12
1992/03/31 18388.03 18684.52
1992/04/30 18905.11 19233.85
1992/05/31 19096.83 19328.10
1992/06/30 18847.01 19040.11
1992/07/31 19445.42 19818.85
1992/08/31 18992.25 19412.56
1992/09/30 19329.22 19641.63
1992/10/31 19410.56 19710.37
1992/11/30 20264.60 20382.50
1992/12/31 20763.87 20633.20
1993/01/31 21333.63 20806.52
1993/02/28 21445.23 21089.49
1993/03/31 22496.64 21534.48
1993/04/30 22619.99 21013.34
1993/05/31 23089.90 21576.50
1993/06/30 23089.90 21639.07
1993/07/31 23583.30 21552.52
1993/08/31 24405.63 22369.36
1993/09/30 24393.88 22197.11
1993/10/31 25128.11 22656.59
1993/11/30 24617.09 22441.36
1993/12/31 25526.51 22712.90
1994/01/31 26852.64 23485.14
1994/02/28 26611.53 22848.69
1994/03/31 25564.58 21852.49
1994/04/30 26154.68 22132.20
1994/05/31 26535.39 22495.17
1994/06/30 26510.00 21944.03
1994/07/31 27334.87 22663.80
1994/08/31 28305.68 23593.01
1994/09/30 27893.25 23014.99
1994/10/31 28369.13 23532.82
1994/11/30 27093.76 22675.76
1994/12/31 27473.85 23012.04
1995/01/31 27157.44 23608.74
1995/02/28 27972.03 24528.77
1995/03/31 28786.62 25252.62
1995/04/30 29439.64 25996.31
1995/05/31 30092.65 27035.38
1995/06/30 30442.73 27663.41
1995/07/31 31647.78 28580.73
1995/08/31 32004.58 28652.47
1995/09/30 33074.99 29861.60
1995/10/31 32395.05 29755.00
1995/11/30 33835.72 31061.24
1995/12/31 34928.03 31659.48
1996/01/31 35870.89 32737.17
1996/02/29 35990.51 33040.64
1996/03/31 36891.15 33358.82
1996/04/30 37862.15 33850.53
1996/05/31 38375.80 34723.54
1996/06/30 38045.10 34855.83
1996/07/31 36110.12 33315.90
1996/08/31 37432.94 34018.54
1996/09/30 38389.87 35933.10
1996/10/31 38692.43 36924.13
1996/11/30 40880.71 39715.23
1996/12/31 40813.90 38928.47
1997/01/31 41692.90 41360.72
1997/02/28 42120.52 41684.99
1997/03/31 41653.31 39972.15
1997/04/30 41962.14 42358.49
1997/05/31 45303.91 44937.28
1997/06/30 47346.98 46950.47
1997/07/31 50474.94 50686.31
1997/08/31 49413.81 47846.87
1997/09/30 51567.74 50467.44
1997/10/31 48099.27 48781.83
IMATRL PRASUN SHR__CHT 19971031 19971111 103241 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Value Fund on October 31, 1987. As the chart
shows, by October 31, 1997, the value of the investment would have
grown to $48,099 - a 380.99% increase on the 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
$48,782 - a 387.82% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
If the U.S. stock market is one of
multiple personalities - and most
would agree that it is - then the
12-month period that ended
October 31, 1997 was a fitting
showcase. Overall, the market
turned in a strong performance.
The Standard & Poor's 500 Index
- - a broad gauge of the U.S. stock
market - returned 32.11% in that
time, well ahead of its long-term
annual average of approximately
11%. Favorable economic
conditions and healthy corporate
earnings sent stock prices soaring,
particularly those of large,
well-known companies. The market
paused briefly to collect its breath
in March - when the Federal
Reserve Board expressed its
concern about an overheating
economy by raising a key
short-term interest rate - but kept
rolling through July. The latter
months of the period, however, told
a different story. Inflation fears, a
weakened dollar and sluggish
corporate earnings knocked many
large-company stocks from their
perch, and stocks of smaller
companies began to perform well.
But while market followers saw this
"broadening" as a positive trend,
events began to unfold overseas
that would show still another side
of the market - and an extremely
volatile one. Currency and
economic problems in Southeast
Asia during the last week of
October sent the world's capital
markets running for cover. The
Dow Jones Industrial Average
tumbled 554 points in one day -
the biggest one-day point drop in
its history - then snapped back
the next, reclaiming almost 337
points.
An interview with Richard Fentin, Portfolio Manager of Fidelity Value
Fund
Q. HOW DID THE FUND PERFORM, RICH?
A. Pretty well. For the 12 months that ended October 31, 1997, the
fund had a total return of 24.31%. This performance topped the capital
appreciation funds average, as tracked by Lipper Analytical Services,
which returned 22.74% during the same period.
Q. WHAT ACCOUNTED FOR THE FUND'S PERFORMANCE RELATIVE TO ITS PEER
GROUP?
A. The fund is somewhat of an anomaly within its peer group. By that I
mean that many of its competitors tend to invest in stocks of smaller,
more aggressive stocks. My primary emphasis, meanwhile, is on finding
cheap stocks that I feel have the potential to appreciate over a
certain period of time. This discipline, I think, leads me to a wider
cross-section of stocks than many of the fund's competitors. That
being said, the fund performed well compared to its peer group in the
first half of the period as small-cap, emerging-growth stocks
struggled. While smaller stocks rebounded in the second half of the
period, the performance of several individual holdings helped the fund
maintain its return advantage against its peers.
Q. RUBBERMAID AND BROWNING-FERRIS - TWO OF THE FUND'S TOP 10 HOLDINGS
AS OF OCTOBER 31 - HAD UP-AND-DOWN PERIODS . . .
A. Both companies experienced difficulties during the period, but I
remained optimistic about their future. Rubbermaid became a cheap
stock early in the period for two reasons. First, the price of basic
plastics - which are used to make a significant portion of
Rubbermaid's products - went up sharply. A second issue was that of
de-stocking. In a trend becoming popular in the retail industry, one
of Rubbermaid's retail customers decided it wanted to reduce the
amount of inventory it had been carrying. BFI, on the other hand, was
an innocent victim of industry perception. Waste Management - another
of the fund's holdings - went through a tough period and the entire
waste industry was negatively affected.
Q. HOW ABOUT OTHER INDIVIDUAL STOCKS?
A. Wal-Mart - with its well-received superstore concept, strong
balance sheet and wise capital management - performed very well.
Airborne Freight - an overnight delivery company no longer owned by
the fund - endured a pricing war and volume concerns and also
contributed positively. Disappointments included Waste Management,
which I mentioned earlier, and Fluor, an engineering and construction
company with some exposure to Southeast Asia. When economic troubles
hit Southeast Asia toward the end of the period, Fluor suffered as
well.
Q. WERE THERE ANY PARTICULAR INDUSTRY GROUPS THAT DREW YOUR ATTENTION
DURING THE PERIOD?
A. Because I'm a value investor, I never pinpoint one particular
industry. That's just not the way it works. Instead, I'm looking for
stocks that are becoming cheaper. Specialty chemical stocks were a
good example. Specialty chemicals have their own unique marketplace
and are derived from commodity chemicals. When commodity chemicals are
in tight supply - as they were early in the period - prices rise and
the profit margins for specialty chemical companies decline. I scooped
up a number of these stocks when they were cheap, including Nalco -
one of the fund's top 10 positions - and Witco. Since the summer of
1997, the supply of commodity chemicals has widened and prices have
been coming down, helping specialty chemical stocks. Oil services
stocks - such as Schlumberger - were also appealing, as were many of
the fund's HMO-related positions, including United HealthCare, Aetna
and Humana.
Q. WHAT'S YOUR OUTLOOK?
A. The problems we saw in Southeast Asia toward the end of the period
may create some interesting buying opportunities, especially in
engineering and construction stocks. Also, the world's fiscal
policymakers are on the spot. Investors will be watching closely to
see their response to the recent market turmoil and its potential
ricochet effect on other markets. In terms of the fund itself - and at
the risk of sounding boring - I'll continue to seek out the best value
opportunities I can find.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
RICH FENTIN DISCUSSES
SOUTHEAST ASIA'S PROBLEMS
AND WHAT IT MEANS FOR THE
FUND:
"The problems in Southeast Asia
started with regional currency
problems and, within weeks, were
wreaking havoc across the world's
financial markets. Southeast Asia
has accounted for a considerable
portion of the world's economic
growth, so we may see negative
effects on other markets in the
near term.
"From a value standpoint, though,
down markets typically create
more opportunities. When a
market average tumbles 500 or so
points, which we saw in the U.S.
in late October, it means that the
universe of cheaper stocks just got
bigger. As the dust settles, the next
few months could be fruitful for
adding new stocks to the portfolio.
"In addition to more opportunities
resulting from this volatility, value
stocks stand to be hurt less than
other types of stocks. When I buy
a value stock, its price usually
has hit some sort of ground level.
Because they've started at such
a low valuation, value stocks
typically have less room to fall in
a market decline than their more
richly priced counterparts do."
FUND FACTS
GOAL: to increase the value of
the fund's shares by investing
in companies that own
valuable assets or are
undervalued in the
marketplace
FUND NUMBER: 039
TRADING SYMBOL: FDVLX
START DATE: December 1, 1978
SIZE: as of October 31, 1997,
more than $7.8 billion
MANAGER: Richard Fentin, since
1996; manager, Fidelity Puritan
Fund, 1987-1996; Fidelity Value
Fund, April 1992-December
1992; Fidelity Growth Company
Fund, 1983-1987; joined
Fidelity in 1980
(checkmark)
INVESTMENT CHANGES
TOP TEN STOCKS AS OF OCTOBER 31, 1997
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE STOCKS
6 MONTHS AGO
WAL-MART STORES, INC. 3.1 2.7
BROWNING-FERRIS INDUSTRIES, INC. 2.6 2.1
DOLE FOOD, INC. 2.4 1.6
AMP, INC. 2.3 2.1
DELUXE CORP. 1.9 2.0
ALUMINUM CO. OF AMERICA 1.9 2.1
FEDERATED DEPARTMENT STORES, INC. 1.9 1.2
DONNELLEY (R.R.) & SONS CO. 1.8 2.0
RUBBERMAID, INC. 1.8 1.5
NALCO CHEMICAL CO. 1.8 1.8
TOP FIVE MARKET SECTORS AS OF OCTOBER 31, 1997
% OF FUND'S % OF FUND'S INVESTMENTS
INVESTMENTS IN THESE MARKET SECTORS
6 MONTHS AGO
BASIC INDUSTRIES 16.0 12.5
INDUSTRIAL MACHINERY & EQUIPMENT 12.4 11.3
DURABLES 10.6 12.1
TECHNOLOGY 9.1 6.8
RETAIL & WHOLESALE 8.9 11.2
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF OCTOBER 31, 1997 * AS OF APRIL 30, 1997 **
ROW: 1, COL: 1, VALUE: 3.9
ROW: 1, COL: 2, VALUE: 2.0
ROW: 1, COL: 3, VALUE: 46.0
ROW: 1, COL: 4, VALUE: 50.0
STOCKS 95.2%
BONDS 0.1%
SHORT-TERM
INVESTMENTS 4.7%
FOREIGN
INVESTMENTS 8.5%
STOCKS 96.0%
BONDS 0.1%
SHORT-TERM
INVESTMENTS 3.9%
FOREIGN
INVESTMENTS 6.5%
ROW: 1, COL: 1, VALUE: 4.7
ROW: 1, COL: 2, VALUE: 2.0
ROW: 1, COL: 3, VALUE: 45.2
ROW: 1, COL: 4, VALUE: 50.0
*
**
INVESTMENTS OCTOBER 31, 1997
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
COMMON STOCKS - 95.8%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 2.3%
AEROSPACE & DEFENSE - 2.0%
AlliedSignal, Inc. 200 $ 7
Doncasters PLC sponsored ADR 63,800 1,719
GenCorp, Inc. 1,740,500 42,533
Harsco Corp. 2,068,800 85,855
Lockheed Martin Corp. 204,700 19,459
Rockwell International Corp. 35,000 1,715
151,288
DEFENSE ELECTRONICS - 0.3%
Litton Industries, Inc. (a) 8,900 452
Raytheon Co. 460,900 25,004
25,456
SHIP BUILDING & REPAIR - 0.0%
Fred Olsen Energy ASA (a) 50,000 1,254
TOTAL AEROSPACE & DEFENSE 177,998
BASIC INDUSTRIES - 16.0%
CHEMICALS & PLASTICS - 9.4%
Betz Dearborn, Inc. 161,700 10,369
Cabot Corp. 2,533,300 62,224
du Pont (E.I.) de Nemours & Co. 128,800 7,326
Engelhard Corp. 20,000 348
Ferro Corp. 1,148,600 43,001
Geon Co. 138,100 2,995
Goodrich (B.F.) Co. 668,400 29,786
Great Lakes Chemical Corp. 299,980 14,099
Hercules, Inc. 1,688,700 77,469
IMC Global, Inc. 954,800 32,165
Lawter International, Inc. (d) 2,668,500 29,854
Monsanto Co. 1,191,900 50,954
Morton International, Inc. 10,000 330
Nalco Chemical Co. (d) 3,463,800 138,552
Olin Corp. 969,600 44,056
PPG Industries, Inc. 647,800 36,682
Praxair, Inc. 10,000 436
Solutia, Inc. 63,380 1,402
Union Carbide Corp. 1,654,700 75,599
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
CHEMICALS & PLASTICS - CONTINUED
W.R. Grace & Co. 72,800 $ 4,950
Witco Corp. 1,565,500 68,098
730,695
IRON & STEEL - 2.2%
Allegheny Teledyne, Inc. 10,000 263
Inland Steel Industries, Inc. 1,775,000 34,834
Nucor Corp. 1,496,800 78,208
Quanex Corp. 164,400 4,542
Steel Dynamics, Inc. 25,000 531
TriMas Corp. 1,904,000 55,692
174,070
METALS & MINING - 2.9%
Alcan Aluminium Ltd. 661,579 18,789
Aluminum Co. of America 2,034,600 148,526
General Cable Corp. 37,600 1,217
Olympic Steel, Inc. (a) 357,500 5,363
Pechiney SA Class A 954,562 39,194
Ryerson Tull, Inc. Class A (a)(d) 527,400 7,812
220,901
PACKAGING & CONTAINERS - 0.3%
Crown Cork & Seal Co., Inc. 10,000 451
Owens-Illinois, Inc. (a) 10,000 344
Tupperware Corp. 873,400 21,890
22,685
PAPER & FOREST PRODUCTS - 1.2%
Bowater, Inc. 149,100 6,234
Chesapeake Corp. 195,900 6,208
Domtar, Inc. 400,000 3,110
Fort James Corp. 697,562 27,684
Georgia-Pacific Corp. 81,700 6,929
Glatfelter (P.H.) Co. 384,600 7,596
Kimberly-Clark Corp. 18,200 945
Pentair, Inc. 342,800 13,241
Unisource Worldwide, Inc. 1,069,000 17,438
89,385
TOTAL BASIC INDUSTRIES 1,237,736
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - 5.0%
BUILDING MATERIALS - 2.6%
American Standard Companies, Inc. (a) 3,201,100 $ 114,439
Caradon PLC 4,075,860 12,960
Lilly Industrial Coatings, Inc. Class A 92,600 1,754
Masco Corp. 1,444,300 63,369
Sherwin-Williams Co. 10,000 278
USG Corp. (a) 172,800 8,153
200,953
ENGINEERING - 2.3%
EG & G, Inc. (d) 4,069,600 84,192
Fluor Corp. 1,004,800 41,321
Foster Wheeler Corp. 485,700 15,937
Stone & Webster, Inc. (d) 829,700 38,477
179,927
REAL ESTATE INVESTMENT TRUSTS - 0.1%
Redwood Trust, Inc. 254,454 6,393
TOTAL CONSTRUCTION & REAL ESTATE 387,273
DURABLES - 10.6%
AUTOS, TIRES, & ACCESSORIES - 2.3%
Bandag, Inc. 210,600 10,635
Cooper Tire & Rubber Co. 85,000 1,801
Circuit City Stores, Inc. - CarMax Group 31,000 430
Cummins Engine Co., Inc. 878,600 53,540
Danaher Corp. 3,400 186
Eaton Corp. 824,500 79,667
Federal Signal Co. 203,100 4,912
Genuine Parts Co. 15,000 470
Meritor Automotive, Inc. (a) 11,666 260
Navistar International Corp. (a) 304,700 7,065
Scania AB Class A 661,100 15,917
Snap-On Tools Corp. 35,000 1,506
176,389
CONSUMER DURABLES - 0.0%
Minnesota Mining & Manufacturing Co. 10,000 915
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
CONSUMER ELECTRONICS - 3.9%
Black & Decker Corp. 2,827,600 $ 107,626
Newell Co. 1,826,300 70,084
Whirlpool Corp. 2,050,100 124,287
301,997
HOME FURNISHINGS - 0.9%
Furniture Brands International, Inc. (a) 423,000 7,085
Heilig-Meyers Co. (d) 4,763,500 63,712
70,797
TEXTILES & APPAREL - 3.5%
Fruit of the Loom, Inc. Class A (a) 752,800 19,620
Intimate Brands, Inc. Class A (d) 2,695,100 57,608
Liz Claiborne, Inc. 157,000 7,958
NIKE, Inc. Class B 335,000 15,745
Reebok International Ltd. 1,648,000 60,770
Russell Corp. 10,000 294
Stride Rite Corp. 31,500 370
Unifi, Inc. 2,794,800 107,425
269,790
TOTAL DURABLES 819,888
ENERGY - 6.9%
COAL - 0.0%
MAPCO, Inc. 10,000 330
ENERGY SERVICES - 0.9%
Baker Hughes, Inc. 10,000 459
Eni Spa 3,450,000 19,498
Helmerich & Payne, Inc. 10,000 807
McDermott International, Inc. 10,000 363
Schlumberger Ltd. 10,000 875
Weatherford Enterra, Inc. (a) 880,047 44,937
66,939
OIL & GAS - 6.0%
Amerada Hess Corp. 1,609,200 98,865
British Petroleum PLC ADR 446,562 39,186
Burlington Resources, Inc. 1,673,500 81,897
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Coastal Corp. (The) 10,000 $ 601
Norcen Energy Resources Ltd. 213,400 4,833
Occidental Petroleum Corp. 3,337,600 93,036
Oryx Energy Co. (a) 643,800 17,745
Royal Dutch Petroleum Co. 586,000 30,838
Tosco Corp. 892,600 29,456
Total SA Class B 445,000 49,299
USX-Marathon Group 38,500 1,376
Valero Energy Corp. 559,200 16,847
463,979
TOTAL ENERGY 531,248
FINANCE - 1.0%
CREDIT & OTHER FINANCE - 0.0%
American Express Co. 10,000 780
Associates First Capital Corp. 10,000 636
Beneficial Corp. 12,350 947
2,363
INSURANCE - 1.0%
Aetna, Inc. 410,200 29,150
Allstate Corp. 3,300 274
Berkley (W.R.) Corp. 445,950 18,340
Enhance Financial Services Group Corp. 9,400 496
Loews Corp. 10,000 1,117
MBIA, Inc. 126,200 7,540
Progressive Corp. 900 94
Terra Nova (Bermuda) Holdings Ltd. 646,600 16,731
73,742
TOTAL FINANCE 76,105
HEALTH - 4.1%
DRUGS & PHARMACEUTICALS - 0.4%
Sigma Aldrich Corp. 10,100 355
Takeda Chemical Industries Ltd. 1,179,000 32,119
32,474
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES - 1.5%
Bausch & Lomb, Inc. 2,444,100 $ 95,931
Boston Scientific Corp. (a) 76,700 3,490
Hillenbrand Industries, Inc. 20,700 885
Pall Corp. 732,500 15,153
115,459
MEDICAL FACILITIES MANAGEMENT - 2.2%
Columbia/HCA Healthcare Corp. 1,504,250 42,495
Humana, Inc. (a) 402,700 8,457
NovaCare, Inc. (a) 133,300 1,741
Quest Diagnostics, Inc. (a) 677,700 11,309
United HealthCare Corp. 2,336,000 108,186
172,188
TOTAL HEALTH 320,121
HOLDING COMPANIES - 0.4%
Cookson Group PLC 3,750,000 14,999
Norfolk Southern Corp. 30,300 973
U.S. Industries, Inc. 438,900 11,796
27,768
INDUSTRIAL MACHINERY & EQUIPMENT - 12.4%
ELECTRICAL EQUIPMENT - 3.7%
Alcatel Alsthom Compagnie Generale d'Electricite SA 600,000 72,287
AMETEK, Inc. (d) 3,305,000 77,874
General Signal Corp. 20,000 803
Scientific-Atlanta, Inc. 2,529,300 46,950
Sensormatic Electronics Corp. 1,016,100 15,178
Westinghouse Electric Corp. 2,847,300 75,275
288,367
INDUSTRIAL MACHINERY & EQUIPMENT - 3.0%
Cooper Industries, Inc. 10,000 521
Flowserve Corp. 204,859 6,095
Harnischfeger Industries, Inc. 853,400 33,603
Ingersoll-Rand Co. 888,600 34,600
Komatsu Ltd. Ord. 728,000 3,888
Stewart & Stevenson Services, Inc. 392,700 8,541
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Tenneco, Inc. 46,500 $ 2,090
THK Co. Ltd. 268,500 3,590
Tyco International Ltd. 3,579,622 135,130
228,058
POLLUTION CONTROL - 5.7%
Browning-Ferris Industries, Inc. 6,142,900 199,644
Ogden Corp. 1,199,800 30,295
Safety Kleen Corp. (d) 5,295,700 117,167
USA Waste Services, Inc. (a) 842,700 31,180
Waste Management, Inc. 2,746,100 64,191
442,477
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 958,902
MEDIA & LEISURE - 4.4%
ENTERTAINMENT - 0.9%
MGM Grand, Inc. (a) 709,800 31,142
Viacom, Inc. (a):
Class A 1,098,000 32,803
Class B (non-vtg.) 226,900 6,864
70,809
LEISURE DURABLES & TOYS - 0.2%
Brunswick Corp. 430,600 14,532
LODGING & GAMING - 1.3%
Circus Circus Enterprises, Inc. (a) 1,106,600 24,622
ITT Corp. (a) 595,900 44,506
Mirage Resorts, Inc. (a) 1,342,300 33,558
102,686
PUBLISHING - 1.6%
Banta Corp. 1,300,100 33,965
Cognizant Corp. 380,800 14,923
Gibson Greetings, Inc. (a) 209,100 5,149
Harcourt General, Inc. 427,500 21,402
Scholastic Corp. (a) 344,700 13,960
Times Mirror Co. Class A 10,000 541
US WEST Media Group (a) 1,410,000 35,603
125,543
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
RESTAURANTS - 0.4%
Brinker International, Inc. (a) 1,914,200 $ 26,799
Darden Restaurants, Inc. 15,900 181
26,980
TOTAL MEDIA & LEISURE 340,550
NONDURABLES - 6.9%
AGRICULTURE - 0.0%
Fresh Del Monte Produce, Inc. 100,000 1,613
BEVERAGES - 0.1%
Seagram Co. Ltd. 250,000 8,449
FOODS - 2.7%
Dean Foods Co. 10,000 473
Dole Food, Inc. (d) 4,106,800 181,983
Flowers Industries, Inc. 174,500 3,316
IBP, Inc. 100,000 2,319
Quaker Oats Co. 10,000 479
Sara Lee Corp. 110,000 5,624
Tyson Foods, Inc. 698,200 13,177
207,371
HOUSEHOLD PRODUCTS - 3.2%
Brady (W.H.) Co. Class A 10,000 320
First Brands Corp. (d) 2,929,700 74,707
Playtex Products, Inc. (a) 858,400 8,584
Rubbermaid, Inc. 5,778,000 139,033
Unilever NV ADR 393,600 21,008
West, Inc. 5,000 169
243,821
TOBACCO - 0.9%
Dimon, Inc. 10,000 259
Gallaher Group PLC 3,300,000 15,739
Philip Morris Companies, Inc. 600,000 23,775
RJR Nabisco Holdings Corp. 904,667 28,667
68,440
TOTAL NONDURABLES 529,694
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
PRECIOUS METALS - 0.3%
Agnico Eagle Mines Ltd. 1,184,800 $ 8,351
Newmont Mining Corp. 483,500 16,923
25,274
RETAIL & WHOLESALE - 8.9%
APPAREL STORES - 1.8%
AnnTaylor Stores Corp. (a)(d) 1,370,600 19,617
Filene's Basement Corp. (a)(d) 1,927,310 14,214
Gymboree Corp. (a) 468,400 11,359
Kenneth Cole Productions, Inc. Class A (a) 108,500 1,492
Limited, Inc. (The) 3,776,921 88,994
Payless ShoeSource, Inc. (a) 25,318 1,410
137,086
GENERAL MERCHANDISE STORES - 5.7%
Consolidated Stores Corp. (a) 31,250 1,246
Dayton Hudson Corp. 162,200 10,188
Dillards, Inc. Class A 1,099,600 42,217
Federated Department Stores, Inc. (a) 3,313,800 145,807
May Department Stores Co. (The) 10,000 539
Nordstrom, Inc. 20,000 1,225
Proffitts, Inc. (a) 7,500 215
Wal-Mart Stores, Inc. 6,775,900 238,003
Woolworth Corp. (a) 10,000 191
439,631
GROCERY STORES - 0.0%
Albertson's, Inc. 20,000 738
Ahold NV 139,077 3,554
Supervalu, Inc. 6,600 241
4,533
RETAIL & WHOLESALE, MISCELLANEOUS - 1.3%
Brylane, Inc. 200,000 8,688
Corporate Express, Inc. 562,300 8,259
Pier 1 Imports, Inc. 2,300,600 41,986
Staples, Inc. (a) 1,437,400 37,732
Toys "R" Us, Inc. (a) 169,900 5,786
102,451
TRADING COMPANIES - 0.1%
Inchcape PLC Ord. 2,000,000 7,296
TOTAL RETAIL & WHOLESALE 690,997
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - 5.6%
LEASING & RENTAL - 0.0%
Hertz Corp. Class A 92,000 $ 3,180
PRINTING - 4.6%
Deluxe Corp. (d) 4,540,100 148,688
Donnelley (R.R.) & Sons Co. 4,295,200 140,131
Harland (John H.) Co. (d) 2,044,100 45,864
Reynolds & Reynolds Co. Class A 1,033,000 17,691
352,374
SERVICES - 1.0%
CPI Corp. 561,000 14,586
Jostens, Inc. 1,179,900 27,506
Sotheby's Holdings, Inc. Class A (d) 1,981,100 37,146
79,238
TOTAL SERVICES 434,792
TECHNOLOGY - 9.1%
COMPUTER SERVICES & SOFTWARE - 2.9%
Automatic Data Processing, Inc. 10,000 511
CUC International, Inc. (a) 3,734,500 110,168
Electronic Data Systems Corp. 1,556,300 60,209
Information Resources, Inc. (a) 1,230,000 20,295
NCR Corp. (a) 264,825 8,028
Sabre Group Holdings, Inc. Class A (a) 577,000 15,291
Sybase, Inc. (a) 500,000 8,156
222,658
COMPUTERS & OFFICE EQUIPMENT - 1.4%
Bell & Howell Co. (a) 691,300 19,054
International Business Machines Corp. 20,000 1,961
Quantum Corp. (a) 10,000 316
Seagate Technology (a) 400,000 10,850
Silicon Graphics, Inc. (a) 218,100 3,203
Unisys Corp. (a) 2,438,600 32,464
Wang Laboratories, Inc. (a) 1,845,751 42,684
110,532
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - 3.5%
AMP, Inc. 3,926,400 $ 176,688
Methode Electronics, Inc. Class A 83,100 1,641
Micron Technology, Inc. (a) 2,637,100 70,707
Texas Instruments, Inc. 10,000 1,067
Thomas & Betts Corp. 416,500 20,721
270,824
PHOTOGRAPHIC EQUIPMENT - 1.3%
Fuji Photo Film Co. Ltd. 770,000 27,884
Imation Corp. (a) 344,450 7,362
Polaroid Corp. 1,478,500 66,440
101,686
TOTAL TECHNOLOGY 705,700
TRANSPORTATION - 0.8%
RAILROADS - 0.3%
Burlington Northern Santa Fe Corp. 5,742 545
CSX Corp. 427,500 23,379
23,924
TRUCKING & FREIGHT - 0.5%
CNF Transportation, Inc. 51,900 2,316
Laidlaw, Inc. 1,700,000 24,140
Laidlaw, Inc. (installment receipt) (e) 1,200,000 9,372
35,828
TOTAL TRANSPORTATION 59,752
UTILITIES - 1.1%
ELECTRIC UTILITY - 0.2%
Niagara Mohawk Power Corp. (a) 686,500 6,650
Northeast Utilities 657,900 7,566
14,216
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
TELEPHONE SERVICES - 0.9%
AT&T Corp. 10,000 $ 489
WorldCom, Inc. (a) 2,030,500 68,275
68,764
TOTAL UTILITIES 82,980
TOTAL COMMON STOCKS
(Cost $6,501,182) 7,406,778
CONVERTIBLE PREFERRED STOCKS - 0.2%
MEDIA & LEISURE - 0.1%
LODGING & GAMING - 0.1%
Host Marriott Financial Trust $3.375 (c) 100,000 6,438
RETAIL & WHOLESALE - 0.0%
GENERAL MERCHANDISE STORES - 0.0%
K mart Financing I $3.875 75,000 4,270
TECHNOLOGY - 0.0%
COMPUTERS & OFFICE EQUIPMENT - 0.0%
Wang Laboratories, Inc. $3.25 67,500 3,544
UTILITIES - 0.1%
TELEPHONE SERVICES - 0.1%
Enhance Financial Services Group, Inc. $7.625 120,000 5,385
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $17,481) 19,637
CONVERTIBLE BONDS - 0.1%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
HEALTH - 0.0%
MEDICAL EQUIPMENT & SUPPLIES - 0.0%
Ventritex, Inc. 5 3/4%, 8/15/01 - $ 2,000 $ 2,228
SERVICES - 0.1%
ADT Operations, Inc. liquid yield option notes
0%, 7/6/10 Ba3 4,920 5,048
TOTAL CONVERTIBLE CORPORATE BONDS
(Cost $4,187) 7,276
CASH EQUIVALENTS - 3.9%
SHARES
Taxable Central Cash Fund (b)
(Cost $299,145) 299,144,562 299,145
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $6,821,995) $ 7,732,836
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
LEGEND
1. Non-income producing
2. At period end, the seven-day yield on the Taxable Central Cash Fund
was 5.64%. The yield refers to the income earned by investing in the
fund over the seven-day period, expressed as an annual percentage.
3. 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 $6,438,000 or
0.1% of net assets.
4. Affiliated company (see Note 6 of Notes to Financial Statements).
5. Purchased on an installment basis. Market value reflects only those
payments made through October 31,1997. The remaining installment
aggregating CAD 11,280,000 is due July 2, 1998.
INCOME TAX INFORMATION
At October 31, 1997, the aggregate cost of investment securities for
income tax purposes was $6,825,483,000. Net unrealized appreciation
aggregated $907,353,000, of which $1,205,943,000 related to
appreciated investment securities and $298,590,000 related to
depreciated investment securities.
The fund hereby designates approximately $166,031,000 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, 1997
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (COST $6,821,995) - $ 7,732,836
SEE ACCOMPANYING SCHEDULE
RECEIVABLE FOR INVESTMENTS SOLD 191,856
RECEIVABLE FOR FUND SHARES SOLD 27,030
DIVIDENDS RECEIVABLE 6,784
INTEREST RECEIVABLE 1,403
OTHER RECEIVABLES 31
TOTAL ASSETS 7,959,940
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 87,541
PAYABLE FOR FUND SHARES REDEEMED 12,995
ACCRUED MANAGEMENT FEE 3,097
OTHER PAYABLES AND ACCRUED EXPENSES 1,480
TOTAL LIABILITIES 105,113
NET ASSETS $ 7,854,827
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 5,701,580
UNDISTRIBUTED NET INVESTMENT INCOME 70,900
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON 1,171,461
INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS 910,886
AND ASSETS AND LIABILITIES IN FOREIGN CURRENCIES
NET ASSETS, FOR 129,320 SHARES OUTSTANDING $ 7,854,827
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER $60.74
SHARE ($7,854,827 (DIVIDED BY) 129,320 SHARES)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED OCTOBER 31, 1997
INVESTMENT INCOME $ 110,835
DIVIDENDS (INCLUDING $20,166 RECEIVED
FROM AFFILIATED ISSUERS)
INTEREST 13,824
TOTAL INCOME 124,659
EXPENSES
MANAGEMENT FEE $ 44,633
BASIC FEE
PERFORMANCE ADJUSTMENT (10,509)
TRANSFER AGENT FEES 14,956
ACCOUNTING FEES AND EXPENSES 816
NON-INTERESTED TRUSTEES' COMPENSATION 44
CUSTODIAN FEES AND EXPENSES 322
REGISTRATION FEES 180
AUDIT 79
LEGAL 40
MISCELLANEOUS 72
TOTAL EXPENSES BEFORE REDUCTIONS 50,633
EXPENSE REDUCTIONS (1,371) 49,262
NET INVESTMENT INCOME 75,397
REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:
INVESTMENT SECURITIES (INCLUDING REALIZED GAIN OF $77,029 1,175,064
ON SALES OF INVESTMENTS IN AFFILIATED ISSUERS)
FOREIGN CURRENCY TRANSACTIONS (114) 1,174,950
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON:
INVESTMENT SECURITIES 317,216
ASSETS AND LIABILITIES IN FOREIGN CURRENCIES 62 317,278
NET GAIN (LOSS) 1,492,228
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 1,567,625
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,
1997 1996
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 75,397 $ 84,986
NET INVESTMENT INCOME
NET REALIZED GAIN (LOSS) 1,174,950 906,734
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) 317,278 49,101
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,567,625 1,040,821
FROM OPERATIONS
DISTRIBUTIONS TO SHAREHOLDERS (66,150) (50,880)
FROM NET INVESTMENT INCOME
FROM NET REALIZED GAIN (738,893) (183,376)
TOTAL DISTRIBUTIONS (805,043) (234,256)
SHARE TRANSACTIONS 2,482,105 3,538,040
NET PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS 789,418 229,199
COST OF SHARES REDEEMED (3,113,462) (2,702,903)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 158,061 1,064,336
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 920,643 1,870,901
NET ASSETS
BEGINNING OF PERIOD 6,934,184 5,063,283
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT $ 7,854,827 $ 6,934,184
INCOME OF $70,900 AND $64,954, RESPECTIVELY)
OTHER INFORMATION
SHARES
SOLD 43,542 68,260
ISSUED IN REINVESTMENT OF DISTRIBUTIONS 15,352 4,685
REDEEMED (55,676) (52,066)
NET INCREASE (DECREASE) 3,218 20,879
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED OCTOBER 31,
1997 1996 1995 1994 D 1993
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING $ 54.99 $ 48.12 $ 44.71 $ 42.78 $ 33.41
OF PERIOD
INCOME FROM INVESTMENT OPERATIONS
NET INVESTMENT INCOME B .58 .70 .70 .54 .55 C
NET REALIZED AND UNREALIZED 11.62 8.38 5.16 4.53 9.20
GAIN (LOSS)
TOTAL FROM INVESTMENT OPERATIONS 12.20 9.08 5.86 5.07 9.75
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (.53) (.48) (.17) (.34) (.23)
FROM NET REALIZED GAIN (5.92) (1.73) (2.28) (2.80) (.15)
TOTAL DISTRIBUTIONS (6.45) (2.21) (2.45) (3.14) (.38)
NET ASSET VALUE, END OF PERIOD $ 60.74 $ 54.99 $ 48.12 $ 44.71 $ 42.78
TOTAL RETURN A 24.31% 19.44% 14.19% 12.90% 29.46%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD $ 7,855 $ 6,934 $ 5,063 $ 3,715 $ 1,623
(IN MILLIONS)
RATIO OF EXPENSES TO AVERAGE .68% .89% .97% 1.10% 1.12%
NET ASSETS
RATIO OF EXPENSES TO AVERAGE NET .66% .88% .96% 1.08% 1.11%
ASSETS AFTER EXPENSE REDUCTIONS E E E E E
RATIO OF NET INVESTMENT INCOME TO 1.01% 1.34% 1.58% 1.29% 1.43%
AVERAGE NET ASSETS
PORTFOLIO TURNOVER RATE 56% 112% 125% 112% 117%
AVERAGE COMMISSION RATE F $ .0423 $ .0358
</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 NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
C INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.11 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.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR
SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY
FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES
EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION
RATE STRUCTURES MAY DIFFER.
NOTES TO FINANCIAL STATEMENTS
For the period ended October 31, 1997
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Value 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 financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are
readily available are valued at the last sale price, or if no sale
price, at the closing bid price. Securities (including restricted
securities) for which exchange quotations are not readily available
(and in certain cases debt securities which trade on an exchange) are
valued primarily using dealer-supplied valuations or at their fair
value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which quotations are not readily available are valued at amortized
cost or original cost plus accrued interest, both of which approximate
current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Income
receipts and expense payments are translated into U.S. dollars at the
prevailing exchange rate on the respective dates of the transactions.
Purchases and sales of securities are translated into U.S. dollars at
the contractual currency exchange rates established at the time of
each trade.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, and the
difference between the amount of net investment income accrued and the
U.S. dollar amount actually received. The effects of changes in
foreign currency exchange rates on investments in securities are
included with the net realized and unrealized gain or loss on
investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the fund is
informed of the ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
Non-cash dividends included in dividend income, if any, are recorded
at the fair market value of the securities received. 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.
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 foreign currency transactions and losses deferred due
to wash sales. The fund also utilized earnings and profits distributed
to shareholders on redemption of shares as a part of the dividends
paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments and foreign currency transactions
may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade. The cost of the foreign currency contracts is
included in the cost basis of the associated investment.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one ormore joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the SEC, the fund may invest in the Taxable Central Cash Fund (the
Cash Fund) managed by FMR Texas, Inc., an affiliate of FMR. The Cash
Fund is an open-end money market fund available only to investment
companies and other accounts managed by FMR and its affiliates. The
Cash Fund seeks preservation of capital, liquidity, and current income
by investing in U.S. Treasury securities and repurchase agreements for
these securities. Income distributions from the Cash Fund are declared
daily and paid monthly from net interest income. Income distributions
received by the fund are recorded as interest income in the
accompanying financial statements.
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, the fund had no investments in restricted
securities (excluding 144A issues).
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $4,009,321,000 and $4,751,463,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly basic fee that is calculated on the basis of a group fee rate
plus a fixed individual fund fee rate applied to the average net
assets of the fund. The group fee rate is the weighted average of a
series of rates and is based on the monthly average net assets of all
the mutual funds advised by FMR. The rates ranged from .2500% to
.5200% for the period. The annual individual fund fee rate is .30%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The basic fee
is subject to a performance adjustment (up to a maximum of
(plus/minus).20% of the fund's average net assets over the performance
period) based on the fund's investment performance as compared to the
appropriate index over
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
a specified period of time. For the period, the management fee was
equivalent to an annual rate of .46% of average net assets after the
performance adjustment.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the fund's transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. For the period, the transfer agent fees were
equivalent to an annual rate of .20% of average net assets.
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 $1,438,000 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 $1,255,000 under this arrangement.
In addition, the fund has entered into arrangements with its custodian
and transfer agent whereby credits realized as a result of uninvested
cash balances were used to reduce a portion of the fund's expenses.
During the period, the fund's custodian and transfer agent fees were
reduced by $4,000 and $112,000, respectively, under these
arrangements.
6. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of
at least 5% of the voting securities. Transactions during the period
with companies which are or were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
AMOUNTS IN THOUSANDS
PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
Airborne Freight Corp. $ 4,929 $ 26,224 $ 597 $ -
AMETEK, Inc. - - 595 77,874
Ann Taylor Stores Corp. 1,106 - - 19,617
Brinker International, Inc. 1,951 32,812 - -
CPI Corp. - 1,957 389 -
Deluxe Corp. 11,784 - 4,814 148,688
Dole Food, Inc. 42,298 - 363 181,983
Duty Free International, Inc. 3,779 13,515 450 -
EG & G, Inc. 21,984 - 2,006 84,192
Filene's Basement Corp. - - - 14,214
First Brands Corp. 21,700 - 219 74,707
Harland (John H.) Co. 10,967 - 266 45,864
Heilig-Meyers Co. 11,766 - 1,186 63,712
Intimate Brands, Inc. Class A - - 1,375 57,608
Lawter International, Inc. 4,581 - 267 29,854
Measurex Corp. 4,307 6,795 113 -
Nalco Chemical Co. 3,832 - 1,731 138,552
Pier 1 Imports, Inc. 1,418 18,140 604 -
Quest Diagnostics, Inc. 2,073 1,722 - -
Ryerson Tull, Inc. Class A 2,790 - - 7,812
Safety Kleen Corp. - - 1,906 117,167
Sensormatic Electronics Corp. 5,338 6,640 437 -
Sotheby's Holdings, Inc. Class A - - 753 37,146
Stone & Webster, Inc. 4,548 36 499 38,477
Sunbeam-Oster, Inc. - 8,854 - -
Unifi, Inc. - 10,000 1,596 -
TOTALS $ 161,151 $ 126,695 $ 20,166 $ 1,137,467
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Capital Trust and the Shareholders of
Fidelity Value Fund:
We have audited the accompanying statement of assets and liabilities
of Fidelity Capital Trust: Fidelity Value Fund, including the schedule
of portfolio investments, as of October 31, 1997, 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, 1997 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 Value Fund as
of October 31, 1997, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five
years in the period then ended, in conformity with generally accepted
accounting principles.
/s/COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
December 12, 1997
DISTRIBUTIONS
The Board of Trustees of Fidelity Value Fund voted to pay on December
8, 1997, to shareholders of record at the opening of business on
December 5, 1997, a distribution of $7.95 per share derived from
capital gains realized from sales of portfolio securities and a
dividend of $.48 per share from net investment income.
A total of .70% 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 18% of the dividends distributed during the fiscal year
qualifies for the dividends-received deduction for corporate
shareholders.
The fund will notify shareholders in January 1998 of these percentages
for use in preparing 1997 income tax returns.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpressprovides a single toll-free number to access
account balances, positions, quotes and trading. It's easy to navigate
the service, and on your first call, the system will help you create a
personal identification number (PIN) for security.
SM
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
For mutual fund and brokerage trading.
For quotes.*
For account balances and holdings.
To review orders and mutual
fund activity.
To change your PIN.
To speak to a Fidelity representative.
0
*
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(PHONE_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call Fidelity at
1-800-544-7272 for significant savings on Web access from internetMCI.
SM
(PHONE_GRAPHIC)
FIDELITY ON-LINE XPRESS+
TM
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD
AND RETURN WILL VARY AND,
EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS
THAT YOU MAY HAVE A GAIN
OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY
MARKET FUNDS WILL BE ABLE TO
MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND
IS NOT INSURED OR
GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND
INCLUDE CHANGES IN SHARE PRICE,
REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY
SALES CHARGES.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and
send you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
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 500
Merrimack, NH 03054-0500
(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 500
Merrimack, NH 03054-0500
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
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
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
950 Northgate Drive
San Rafael, CA
1400 Civic Drive
Walnut Creek, CA
6300 Canoga Avenue
Woodland Hills, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
48 West Putnam Avenue
Greenwich, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
29 South Main Street
West Hartford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
90 Alhambra Plaza
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
1907 West State Road 434
Longwood, FL
4001 Tamiami Trail, North
Naples, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
1502 N. Westshore Blvd.
Tampa, FL
GEORGIA
3445 Peachtree Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
One North Franklin Street
Chicago, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
3232 Lake Avenue
Wilmette, IL
INDIANA
4729 East 82nd Street
Indianapolis, IN
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
155 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
150 Essex Street
Millburn, NJ
56 South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
NEW YORK
1055 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
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
16850 SW 72 Avenue
Tigard, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
Dallas, TX
1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, 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
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
William J. Hayes, Vice President
Abigail Johnson, Vice President
Richard B. Fentin, Vice President
Arthur S. Loring, Secretary
Richard A. Silver, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export and Multinational Fund
Fidelity Fifty
Growth Company Fund
Large Cap Stock Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(registered trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
TechnoQuantGrowth Fund
SM
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
TouchTone Xpress 1-800-544-5555
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AUTOMATED LINE FOR QUICKEST SERVICE
