FIDELITY(REGISTERED TRADEMARK)
(registered trademark)
FOUR-IN-ONE INDEX
FUND
ANNUAL REPORT
FEBRUARY 29, 2000
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 the fund's
investments.
INVESTMENTS 10 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS 11 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 15 Notes to the financial
statements.
REPORT OF INDEPENDENT 18 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 19
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
Other third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
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 1-800-544-6666 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(Photograph of Edward C. Johnson 3d)
DEAR SHAREHOLDER:
In February, the Dow Jones Industrial Average closed below 10,000 for
the first time in 10 months - 16% below its high set in January. A
deeper drop was avoided by a rally late in the period. Meanwhile, the
technology-focused NASDAQ Index continued its record-setting ascent,
while the bellwether 30-year Treasury benefited slightly as a haven
from volatile blue chips and the U.S. Treasury's decision to reduce
long bond supply.
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 an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
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. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-6666, or visit our
web site at www.fidelity.com. 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). If Strategic Advisers had not reimbursed certain
fund expenses, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIOD ENDED FEBRUARY 29, 2000 LIFE OF FUND
FIDELITY FOUR-IN-ONE INDEX 9.24%
Fidelity Four-in-One Composite 9.71%
S&P 500(registered trademark) 1.94%
LB Aggregate Bond 2.06%
MSCI EAFE(registered 16.98%
trademark)
Wilshire 4500 Completion 41.35%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, since the fund started on June
29, 1999. 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 return to the performance of the
Fidelity Four-in-One Composite Index, a hypothetical combination of
unmanaged indices combining the total returns of the Standard & Poor's
500 SM (S&P 500) Index, Wilshire 4500 Completion Index, Morgan Stanley
Capital International Europe, Australasia, Far East Index (MSCI EAFE),
and Lehman Brothers Aggregate Bond Index using a weighting of 55%,
15%, 15%, and 15%, respectively. These benchmarks include reinvested
dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
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. These numbers will be reported once the fund
is a year old.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
$10,000 OVER LIFE OF FUND
Four-in-One Index Fund S&P 500 Four-in-One Composite
00355 SP001 F0251
1999/06/29 10000.00 10000.00 10000.00
1999/06/30 10120.00 10157.65 10114.51
1999/07/31 9928.00 9840.53 9933.86
1999/08/31 9880.00 9791.82 9874.64
1999/09/30 9744.00 9523.43 9746.58
1999/10/31 10216.00 10126.07 10220.90
1999/11/30 10500.00 10331.93 10517.94
1999/12/31 11174.34 10940.48 11210.30
2000/01/31 10726.40 10390.83 10768.31
2000/02/29 10924.14 10194.13 10970.66
IMATRL PRASUN SHR__CHT 20000229 20000314 160036 R00000000000012
</TABLE>
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Fidelity Four-in-One Index Fund on June 29, 1999, when the
fund started. As the chart shows, by February 29, 2000, the value of
the investment would have grown to $10,924 - a 9.24% increase on the
initial investment. For comparison, look at how both the Standard &
Poor's 500 Index, a market capitalization-weighted index of common
stocks, and the Fidelity Four-in-One Composite Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment in the Standard & Poor's 500 Index would have grown
to $10,194, a 1.94% increase. You can also look at how the Fidelity
Four-in-One Composite Index did over the same period. The composite
index combines the total returns of the S&P 500 Index, the Lehman
Brothers Aggregate Bond Index, the Morgan Stanley Capital
International Europe, Australasia, Far East Index and the Wilshire
4500 Completion Index according to the fund's target asset allocation,
and assumes monthly rebalancing of the mix. With dividends and
interest, if any, reinvested, the same $10,000 investment would have
grown to $10,971 - a 9.71% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. 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
(photograph of Jennifer Farrelly)
An interview with Jennifer Farrelly, Portfolio Manager of Fidelity
Four-in-One Index Fund
Q. HOW DID THE FUND PERFORM, JENNIFER?
A. From its inception on June 29, 1999, through February 29, 2000, the
fund returned 9.24%. The fund compares its performance to a composite
benchmark, which comprises various indexes and reflects the fund's
target allocation mix. During this same time frame, the Fidelity
Four-in-One Composite Index returned 9.71%. Going forward, we will
look at the fund's six- and 12-month performance.
Q. HOW WOULD YOU DESCRIBE THE INVESTMENT CLIMATE FOR U.S. STOCKS
DURING THE PAST EIGHT MONTHS?
A. It was feast or famine. Investors swarmed to the areas of the
market expected to lead the economy's growth - namely technology,
communications equipment and services, and biotechnology - snapping up
shares at a frenetic pace. Investors were particularly attracted to
the superior long-term earnings growth potential surrounding the
companies engaged in building Internet infrastructure and pioneering
genetic research. With all of the action clustered in a precious few
sectors, nothing could prevent the rest of the market from slipping
progressively lower. Small-cap stocks generally garnered a lion's
share of the interest during this time, leaving many of the
well-known, larger-cap names outside of these sectors flat or down for
the period. The performance disparity created between these old
economy stocks, such as Coca-Cola, and the newer tech names donning
the new economy label, such as Network Appliance, widened over the
course of the period. The four interest-rate hikes levied by the
Federal Reserve Board in an effort to stave off inflation and cool the
overall economy didn't have much of an effect. In fact, tech shares
proved seemingly resilient to the hikes, while big-cap stocks
retreated further from growing deflationary pressures.
Q. HOW DID THE DOMESTIC EQUITY MARKET FARE?
A. The Standard & Poor's 500 Index - a broad measure of U.S. large-cap
stock performance - was virtually flat for the period, up only 1.94%,
as a handful of winners couldn't escape the pall cast by the rest of
the index. The gains offered by tech leaders Cisco, Intel and Sun
Microsystems were offset by financial stocks such as Bank of America
and Banc One, which suffered from rising rates, and pharmaceutical
giants Merck, Pfizer and Eli Lilly, which recoiled in response to
election-year concerns about government regulation. Conversely, the
Wilshire 4500 Completion Index - a much broader reflection of the
overall market - soared 41.35% on the back of red-hot tech firms such
as JDS Uniphase and Juniper Networks and biotech leaders such as
Immunex and Celera Genomics.
Q. WHAT ABOUT THE U.S. BOND MARKET?
A. Higher interest rates provided a stiff headwind for
investment-grade bonds during the period, with the Lehman Brothers
Aggregate Bond Index - a popular measure of taxable-bond performance -
returning a modest 2.06%. Persistent fears about inflation and further
Fed tightening held Treasuries at bay for much of the period. In
January, however, an anticipated increase in short-term rates, coupled
with the Treasury's announcement of its intent to repurchase
high-yielding, longer-term debt and reduce future issuance, sent the
price of the long bond higher and its yield lower. This caused an
inversion in the two- to 30-year segment of the yield curve, resulting
in wider spreads between long-term Treasuries and comparable duration
spread sector issues - namely corporate bonds, agency and mortgage
securities - sweetening the return on Treasuries. Positive technical
factors emerging in the fall helped the spread sectors to a positive
overall return for the period.
Q. WHAT WAS THE SITUATION LIKE IN OVERSEAS MARKETS DURING THE PERIOD?
A. Similar to the U.S., market performance overseas was highly
polarized, with technology and telecommunications stocks rising and
most other sectors declining. The Morgan Stanley Capital International
Europe, Australasia and Far East (MSCI EAFE) Index returned 16.98%
during the period. New economy - or what is known as "New Japan" -
stocks led the way in that nation, with Sony and Softbank - an
Internet venture-capital firm - contributing the most to performance.
Japan continued to forge ahead with its economic recovery, as
corporate restructuring remained a key theme in the stock market. The
theme was similar in Europe and the United Kingdom, each big
beneficiaries of markedly improved economies, the continued emergence
of the Internet and the worldwide wireless communications boom.
Finland and Sweden were the big winners behind the strength of
wireless leaders Nokia and Ericsson, respectively. On the downside,
financial stocks in the U.K. and Europe sagged, as did select consumer
product and health care issues. Lloyds, Unilever and Novartis were
notable detractors.
Q. WHAT'S YOUR OUTLOOK?
A. Inflation-fighting productivity gains continue to spur the growth
of the domestic economy. The Fed remains concerned, however, that
inflation restraints may be waning in the face of accelerating
domestic demand and widespread global economic recoveries. The real
question for investors surrounds the sustainability of the tech rally
and if and when the broader market will ever regain a semblance of
normalcy. The answer is anyone's guess, but I feel that as long as
interest rates hold steady or decline and corporate earnings growth
remains strong, the market should respond well in the next six to 12
months.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
JENNIFER FARRELLY RECAPS THE
FUND'S INVESTMENT STRATEGY:
"The Four-in-One Index Fund
spreads its assets among a
combination of four Fidelity stock
and bond index funds. It has built-in
diversification that stretches
across domestic and international
investments and across equity and
fixed-income markets. The fund's
investments include an
approximate 55% weighting in
Spartan (registered trademark) 500 Index (formerly
Spartan Market Index), which
tracks the total return of the
Standard & Poor's 500 Index; 15%
in Spartan Extended Market
Index, which seeks to provide
total returns comparable to the
medium- and small-cap oriented
Wilshire 4500 Completion Index;
15% in Spartan International
Index, which aims for results that
correspond to the total return of
foreign stock markets reflected by
the Morgan Stanley Capital
International (MSCI) EAFE
Index; and 15% in Fidelity U.S.
Bond Index, which attempts to
mirror the returns of bonds that
make up the Lehman Brothers
Aggregate Bond Index. The fund
is managed so as to remain close
to its target allocation.
Occasionally, I will re-balance the
portfolio to its target asset mix
due to shifts resulting from
market activity."
FUND FACTS
GOAL: seeks high total return
by investing in a combination
of four Fidelity stock and
bond index funds
FUND NUMBER: 355
TRADING SYMBOL: FFNOX
START DATE: June 29, 1999
SIZE: as of February 29,
2000, more than $314
million
MANAGER: Jennifer Farrelly,
since inception; manager,
various structured portfolios
for Fidelity Management
Trust Company; manager,
various Fidelity and Spartan
domestic equity index funds,
1994-1997; joined Fidelity
in 1988
(checkmark)
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FUND HOLDINGS AS OF FEBRUARY
29, 2000
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6 TARGETED INVESTMENT ALLOCATION
MONTHS AGO
Spartan 500 Index Fund 52.9% 54.9% 55.0%
Spartan Extended Market Index 16.8 14.8 15.0
Fund
Spartan International Index 15.2 15.2 15.0
Fund
Fidelity U.S. Bond Index Fund 15.0 15.1 15.0
Cash Equivalents 0.1 0.0 0.0
100.0% 100.0% 100.0%
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF FEBRUARY 29, 2000 AS OF AUGUST 31, 1999
Domestic Equity Funds 69.7% Domestic Equity Funds 69.7%
International Equity Fund International Equity Fund
15.2% 15.2%
Bond Fund 15.0% Bond Fund 15.1%
Cash Equivalents 0.1%
</TABLE>
Row: 1, Col: 1, Value: 69.7
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 15.2
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 15.0
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 0.1
Row: 1, Col: 1, Value: 69.7
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 15.2
Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 15.1
Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 0.0
INVESTMENTS FEBRUARY 29, 2000
Showing Percentage of Total Value of Investment in Securities
EQUITY FUNDS - 84.9%
SHARES VALUE (NOTE 1)
DOMESTIC EQUITY FUNDS - 69.7%
Spartan Extended Market Index 1,375,986 $ 52,961,698
Fund
Spartan 500 Index Fund 1,774,503 166,785,530
219,747,228
INTERNATIONAL EQUITY FUNDS -
15.2%
Spartan International Index 1,319,217 47,834,797
Fund
TOTAL EQUITY FUNDS 267,582,025
(Cost $256,758,163)
FIXED-INCOME FUNDS - 15.0%
INVESTMENT GRADE FIXED-INCOME
FUNDS - 15.0%
Fidelity U.S. Bond Index Fund 4,639,026 47,178,896
(Cost $47,650,462)
CASH EQUIVALENTS - 0.1%
MATURITY AMOUNT
Investments in repurchase $ 393,063 393,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 5.75%,
dated 2/29/00 due 3/1/00
(Cost $393,000)
TOTAL INVESTMENT IN $ 315,153,921
SECURITIES - 100%
(Cost $304,801,625)
INCOME TAX INFORMATION
At February 29, 2000, the aggregate cost of investment securities for
income tax purposes was $304,883,632. Net unrealized appreciation
aggregated $10,270,289, of which $15,302,493 related to appreciated
investment securities and $5,032,204 related to depreciated investment
securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 29, 2000
ASSETS
Investment in securities, at $ 315,153,921
value (including repurchase
agreements of $393,000)
(cost $304,801,625) - See
accompanying schedule
Cash 416
Receivable for Four-in-One 1,989,126
Index Fund shares sold
Dividends receivable 251,493
TOTAL ASSETS 317,394,956
LIABILITIES
Payable for underlying fund $ 1,567,832
shares purchased
Payable for Four-in-One Index 844,291
Fund shares redeemed
Accrued management fee 20,113
TOTAL LIABILITIES 2,432,236
NET ASSETS $ 314,962,720
Net Assets consist of:
Paid in capital $ 303,772,747
Undistributed net investment 414,025
income
Accumulated undistributed net 423,652
realized gain (loss) on
investments
Net unrealized appreciation 10,352,296
(depreciation) on investments
NET ASSETS, for 11,635,273 $ 314,962,720
shares outstanding
NET ASSET VALUE, offering $27.07
price and redemption price
per share ($314,962,720
(divided by) 11,635,273
shares)
STATEMENT OF OPERATIONS
JUNE 29, 1999 (COMMENCEMENT
OF OPERATIONS) TO FEBRUARY
29, 2000
INVESTMENT INCOME $ 2,124,722
Income distributions from
underlying funds
Interest 3,486
TOTAL INCOME 2,128,208
EXPENSES
Management fee $ 93,084
Non-interested trustees' 208
compensation
Total expenses before 93,292
reductions
Expense reductions (17,125) 76,167
NET INVESTMENT INCOME 2,052,041
REALIZED AND UNREALIZED GAIN
(LOSS)
Realized gain (loss) on sale (54,293)
of underlying fund shares
Capital gain distributions 686,816 632,523
from underlying funds
Change in net unrealized 10,352,296
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 10,984,819
NET INCREASE (DECREASE) IN $ 13,036,860
NET ASSETS RESULTING FROM
OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
JUNE 29, 1999 (COMMENCEMENT
OF OPERATIONS) TO FEBRUARY
29, 2000
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 2,052,041
income
Net realized gain (loss) 632,523
Change in net unrealized 10,352,296
appreciation (depreciation)
NET INCREASE (DECREASE) IN 13,036,860
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (1,846,887)
from net investment income
Share transactions Net 339,727,353
proceeds from sales of
Four-in-One Index Fund shares
Reinvestment of distributions 1,763,136
Cost of Four-in-One Index (37,717,742)
Fund shares redeemed
NET INCREASE (DECREASE) IN 303,772,747
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 314,962,720
IN NET ASSETS
NET ASSETS
Beginning of period -
End of period (including $ 314,962,720
undistributed net investment
income of $414,025)
OTHER INFORMATION
Shares
Sold 12,989,339
Issued in reinvestment of 65,229
distributions
Redeemed (1,419,295)
Net increase (decrease) 11,635,273
FINANCIAL HIGHLIGHTS
YEAR ENDED FEBRUARY 29, 2000 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 25.00
period
Income from Investment
Operations
Net investment income D .37
Net realized and unrealized 1.94
gain (loss)
Total from investment 2.31
operations
Less Distributions
From net investment income (.24)
Net asset value, end of period $ 27.07
TOTAL RETURN B, C 9.24%
RATIOS AND SUPPLEMENTAL DATA
(amounts do not include the
activity of the underlying
funds)
Net assets, end of period $ 314,963
(000 omitted)
Ratio of expenses to average .08% A, E
net assets
Ratio of net investment 2.20% A
income to average net assets
Portfolio turnover rate 4% A
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED.
C THE TOTAL RETURN WOULD HAVE
BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIOD SHOWN.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
E STRATEGIC ADVISERS AGREED
TO REIMBURSE A PORTION OF
THE FUND'S EXPENSES DURING
THE PERIOD. WITHOUT THIS
REIMBURSEMENT, THE FUND'S
EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F FOR THE PERIOD JUNE 29,
1999 (COMMENCEMENT OF
OPERATIONS) TO FEBRUARY 29,
2000.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 29, 2000
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Four-in-One Index Fund (the fund) is a fund of Fidelity
Oxford Street 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 Delaware
business trust. The fund primarily invests in a combination of
Fidelity index funds (the Underlying Funds) managed by Fidelity
Management & Research Company (FMR). The stock funds are sub-advised
by Bankers Trust.
On March 11, 1999, Bankers Trust announced that it had reached an
agreement with the United States Attorney's Office in the Southern
District of New York to resolve an investigation concerning
inappropriate transfers of unclaimed funds and related recordkeeping
problems that occurred between 1994 and early 1996. Pursuant to its
agreement with the U.S. Attorney's Office, Bankers Trust pleaded
guilty to misstating entries in the bank's books and records and
agreed to pay a $60 million fine to federal authorities. On July 26,
1999, Bankers Trust was formally sentenced in United States District
Court to pay the $60 million fine. Separately, Bankers Trust has
agreed to pay a $3.5 million fine to the State of New York. The events
leading up to the guilty plea and formal sentence did not arise out of
the investment advisory or mutual fund management activities of
Bankers Trust or its affiliates.
As a result of the plea and subsequent sentence, absent an order from
the Securities and Exchange Commission (SEC), Bankers Trust would not
be able to continue to provide investment advisory services to the
funds. The SEC has granted a temporary order to permit Bankers Trust
and its affiliates to continue to provide investment advisory services
to registered investment companies. There is no assurance that the SEC
will grant a permanent order.
The financial statements have been prepared in conformity with
generally accepted accounting principles which require 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. Investments in the Underlying Funds are valued at
the closing net asset value per share of each Underlying Fund on the
day of valuation. Short-term securities maturing within sixty days of
their purchase date are valued either at amortized cost or original
cost plus accrued interest, both of which approximate current value.
INCOME TAXES. The fund intends to qualify as a regulated investment
company under Subchapter M of the Internal Revenue Code. By so
qualifying, the fund will not be 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."
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME. Income and capital gain distributions from the
Underlying Funds, if any, are recorded on the ex-dividend date.
Interest income is accrued as earned.
EXPENSES. Expenses included in the accompanying financial statements
reflect the expenses of the fund and do not include any expenses
associated with the Underlying Funds.
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 the short-term gain distributions from the Underlying
Funds and losses deferred due to wash sales.
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 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.
SHORT-TERM TRADING (REDEMPTION) FEES. Shares held in the fund less
than 90 days are subject to a short-term trading fee equal to 0.50% of
the proceeds of the redeemed shares. The fee, which is paid to the
fund, is then paid to the Underlying Funds with short-term trading
fees. For the period, the fund received $76,476, of which $39,127,
$16,007 and $21,342 was paid to Spartan 500 Index Fund, Spartan
Extended Market Index Fund and Spartan International Index Fund,
respectively.
SECURITY TRANSACTIONS. Security transactions, normally shares of the
Underlying Funds, are accounted for as of trade date. Gains and losses
on securities sold are determined on the basis of identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
SEC, the fund, along with other affiliated entities of FMR, may
transfer uninvested cash balances into one or more joint trading
accounts. These balances are invested in one or more repurchase
agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury, Federal Agency,
and other obligations found satisfactory by FMR are transferred to an
account of the funds, 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 is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and redemptions of the Underlying Funds' shares aggregated
$308,515,961 and $4,053,043, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. The fund pays a management fee to Strategic Advisers,
Inc. (Strategic Advisers), an affiliate of FMR. Strategic Advisers
receives a fee that is computed daily at an annual rate of .10% of the
fund's average net assets. The management fee paid to Strategic
Advisers by the fund is reduced by an amount equal to the fees and
expenses paid by the fund to the non-interested Trustees.
OTHER TRANSACTIONS. Strategic Advisers has entered into an
administration agreement with FMR under which FMR provides management
and administrative services (other than investment advisory services)
necessary for the operation of the fund. Pursuant to this agreement,
FMR pays all expenses of the fund, except the compensation of the
non-interested trustees and certain exceptions such as interest,
taxes, brokerage commissions, and extraordinary expenses. FMR also
contracts with other Fidelity companies to perform the services
necessary for the operation of the fund. For the services under the
agreement, Strategic Advisers pays FMR a monthly administration fee
equal to the management fee received by Strategic
Advisers, minus an amount equal to an annual rate of .02% of the
fund's average net assets.
5. EXPENSE REDUCTIONS.
Strategic Advisers voluntarily agreed to reimburse the fund's total
operating expenses (excluding interest, taxes, brokerage commissions
and extraordinary expenses) above an annual rate of .08% of the fund's
average net assets. For the period, the reimbursement reduced expenses
by $17,051.
In addition, Strategic Advisers has entered into an arrangement with
the fund's custodian, 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 fees were reduced by $74 under this
arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Oxford Street Trust and the Shareholders
of Fidelity Four-in-One Index Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Four-in-One Index Fund (a fund of Fidelity Oxford Street
Trust) at February 29, 2000, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with accounting principles generally accepted
in the United States. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fidelity Four-in-One Index Fund's management;
our responsibility is to express an opinion on these financial
statements based on our audits. We conducted our audits of these
financial statements in accordance with auditing standards generally
accepted in the United States which require that we plan and perform
the audit to obtain reasonable assurance about whether the financial
statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at February
29, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 7, 2000
DISTRIBUTIONS
The Board of Trustees of Fidelity Four-in-One Index Fund voted to pay
on April 10, 2000, to shareholders of record at the opening of
business on April 7, 2000, a distribution of $.04 per share derived
from capital gains realized from sales of portfolio securities and a
dividend of $.04 per share from net investment income.
The fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends.
A total of 34% of the dividends distributed during the fiscal year
qualifies for the dividends-received deduction for corporate
shareholders.
A total of 7.29% of the dividends distributed during the fiscal year
was derived from interest on U.S. Government securities which is
generally exempt from state income tax.
The fund will notify shareholders in January 2001 of amounts for use
in preparing 2000 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 Automated Service Telephone provides 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.
(PHONE_GRAPHIC)
FIDELITY AUTOMATED
SERVICE TELEPHONE (FAST) SM
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
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.
(COMPUTER_GRAPHIC)
FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+(registered trademark)
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 1-800-544-0240 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 75039-5587
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 75039-5587
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
19200 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
8 Montgomery 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
8880 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
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
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
OHIO
600 Vine Street
Cincinnati, OH
28699 Chagrin Boulevard
Woodmere Village, 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
VIRGINIA
1861 International 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
Strategic Advisers, Inc.
Boston, MA
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Robert A. Lawrence, VICE PRESIDENT
Jennifer G. Farrelly, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Robert A. Dwight, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
Maria F. Dwyer, DEPUTY TREASURER
John H. Costello, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
Bank of New York
New York, NY
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FAST SM) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
