FIDELITY(REGISTERED TRADEMARK)
EXCHANGE
FUND
SEMIANNUAL REPORT
JUNE 30, 2000
(2_FIDELITY_LOGOS)(registered trademark)
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 8 A summary of major shifts in
the fund's investments over
the past six months.
INVESTMENTS 9 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS 15 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 19 Notes to the financial
statements.
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.
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
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
In stark contrast to the final six months of 1999, most major equity
market indexes posted negative returns for the first half of 2000, due
mainly to a correction in the technology sector during the second
quarter. The majority of bond markets - with the notable exception of
high yield - fared better, as Treasuries and non-Treasuries alike
benefited as a haven from the volatility of stocks and riskier
investment alternatives.
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).
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 2000 PAST 6 MONTHS PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY EXCHANGE 1.06% 2.96% 145.37% 323.00%
S&P 500 (registered trademark) -0.42% 7.25% 190.84% 414.73%
Growth & Income Funds Average -0.47% 2.15% 127.55% 284.77%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case six months, one year, five
years or 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 500SM Index - a market
capitalization-weighted index of common stocks. To measure how the
fund's performance stacked up against its peers, you can compare it to
the growth & income funds average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
six months average represents a peer group of 1,007 mutual funds.
These benchmarks include reinvested dividends and capital gains, if
any, and exclude the effect of sales charges. Lipper has created new
comparison categories that group funds according to portfolio
characteristics and capitalization, as well as by capitalization only.
These averages are listed on page 5 of this report.*
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY EXCHANGE 2.96% 19.66% 15.51%
S&P 500 7.25% 23.80% 17.80%
Growth & Income Funds Average 2.15% 17.45% 14.14%
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 different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Exchange S&P 500
00033 SP001
1990/06/30 10000.00 10000.00
1990/07/31 9933.04 9968.00
1990/08/31 9100.80 9066.89
1990/09/30 8677.51 8625.34
1990/10/31 8609.35 8588.25
1990/11/30 9153.41 9143.05
1990/12/31 9431.14 9398.14
1991/01/31 9741.54 9807.90
1991/02/28 10459.18 10509.16
1991/03/31 10741.02 10763.48
1991/04/30 10705.02 10789.32
1991/05/31 11171.86 11255.41
1991/06/30 10627.02 10739.92
1991/07/31 11169.61 11240.40
1991/08/31 11408.25 11506.79
1991/09/30 11190.96 11314.63
1991/10/31 11405.74 11466.25
1991/11/30 11049.04 11004.16
1991/12/31 12394.11 12263.03
1992/01/31 12123.29 12034.94
1992/02/29 12335.62 12191.39
1992/03/31 12099.13 11953.66
1992/04/30 12325.45 12305.10
1992/05/31 12400.46 12365.39
1992/06/30 12087.79 12181.15
1992/07/31 12651.96 12679.36
1992/08/31 12483.61 12419.43
1992/09/30 12535.01 12565.98
1992/10/31 12648.10 12609.96
1992/11/30 13033.64 13039.96
1992/12/31 12974.72 13200.35
1993/01/31 12873.72 13311.24
1993/02/28 12913.07 13492.27
1993/03/31 13209.50 13776.96
1993/04/30 12951.11 13443.55
1993/05/31 13280.33 13803.84
1993/06/30 13288.95 13843.87
1993/07/31 13042.29 13788.50
1993/08/31 13518.37 14311.08
1993/09/30 13405.65 14200.89
1993/10/31 13807.46 14494.84
1993/11/30 13616.50 14357.14
1993/12/31 13823.31 14530.86
1994/01/31 14046.49 15024.91
1994/02/28 13717.79 14617.74
1994/03/31 13156.14 13980.40
1994/04/30 13378.09 14159.35
1994/05/31 13600.04 14391.57
1994/06/30 13256.01 14038.97
1994/07/31 13674.70 14499.45
1994/08/31 14264.44 15093.93
1994/09/30 14127.61 14724.13
1994/10/31 14499.78 15055.42
1994/11/30 14242.54 14507.10
1994/12/31 14467.10 14722.24
1995/01/31 14992.43 15103.99
1995/02/28 15506.38 15692.59
1995/03/31 15768.33 16155.68
1995/04/30 16273.61 16631.47
1995/05/31 16881.96 17296.23
1995/06/30 17239.63 17698.02
1995/07/31 17812.21 18284.88
1995/08/31 17614.12 18330.78
1995/09/30 18451.30 19104.34
1995/10/31 18532.27 19036.14
1995/11/30 19301.50 19871.82
1995/12/31 19642.37 20254.55
1996/01/31 20360.40 20944.02
1996/02/29 20680.02 21138.17
1996/03/31 20897.47 21341.73
1996/04/30 21147.03 21656.31
1996/05/31 21735.18 22214.82
1996/06/30 21866.52 22299.46
1996/07/31 20745.38 21314.27
1996/08/31 21179.42 21763.79
1996/09/30 22390.30 22988.66
1996/10/31 22637.48 23622.68
1996/11/30 24260.33 25408.32
1996/12/31 23767.66 24904.98
1997/01/31 25160.41 26461.05
1997/02/28 25422.86 26668.50
1997/03/31 24638.50 25572.69
1997/04/30 25980.55 27099.38
1997/05/31 27504.52 28749.19
1997/06/30 28863.40 30037.16
1997/07/31 30657.89 32427.21
1997/08/31 28594.83 30610.64
1997/09/30 30281.29 32287.18
1997/10/31 29721.64 31208.79
1997/11/30 31102.01 32653.45
1997/12/31 31927.93 33214.11
1998/01/31 32207.21 33581.45
1998/02/28 34163.64 36003.35
1998/03/31 35513.22 37847.08
1998/04/30 36047.62 38227.82
1998/05/31 35294.33 37570.69
1998/06/30 36188.28 39096.81
1998/07/31 35261.19 38680.43
1998/08/31 30800.24 33088.01
1998/09/30 32328.19 35207.63
1998/10/31 34972.90 38071.42
1998/11/30 36481.12 40378.93
1998/12/31 37911.96 42705.56
1999/01/31 38313.01 44491.51
1999/02/28 38035.48 43108.71
1999/03/31 39342.31 44833.49
1999/04/30 40559.18 46569.89
1999/05/31 40237.43 45470.38
1999/06/30 41083.04 47993.98
1999/07/31 40108.74 46495.61
1999/08/31 40448.83 46265.46
1999/09/30 38342.44 44997.32
1999/10/31 40436.57 47844.75
1999/11/30 40853.25 48817.43
1999/12/31 41857.51 51692.78
2000/01/31 40176.50 49095.74
2000/02/29 38347.85 48166.35
2000/03/31 41123.89 52878.47
2000/04/30 41426.87 51287.35
2000/05/31 41548.37 50234.94
2000/06/30 42300.30 51473.23
IMATRL PRASUN SHR__CHT 20000630 20000720 120442 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Exchange Fund on June 30, 1990. As the chart
shows, by June 30, 2000, the value of the investment would have grown
to $42,300 - a 323.00% increase on the initial investment. For
comparison, look at how the Standard & Poor's 500 Index did over the
same period. With dividends and capital gains, if any, reinvested, the
same $10,000 would have grown to $51,473 - a 414.73% increase.
(checkmark)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.
* THE LIPPER LARGE-CAP VALUE FUNDS AVERAGE REFLECTS THE PERFORMANCE
(EXCLUDING SALES CHARGES) OF MUTUAL FUNDS WITH SIMILAR PORTFOLIO
CHARACTERISTICS AND CAPITALIZATION. THE LIPPER LARGE-CAP SUPERGROUP
AVERAGE REFLECTS THE PERFORMANCE (EXCLUDING SALES CHARGES) OF MUTUAL
FUNDS WITH SIMILAR CAPITALIZATION. AS OF JUNE 30, 2000, THE SIX MONTH,
ONE YEAR, FIVE YEAR AND 10 YEAR CUMULATIVE TOTAL RETURNS FOR THE
LIPPER LARGE-CAP VALUE FUNDS AVERAGE WERE, -1.65%, -0.93%, 130.65%,
AND 301.03%, RESPECTIVELY; AND THE ONE YEAR, FIVE YEAR AND 10 YEAR
AVERAGE ANNUAL TOTAL RETURNS WERE, -0.93%, 18.01%, AND 14.75%,
RESPECTIVELY. THE SIX MONTH, ONE YEAR, FIVE YEAR AND 10 YEAR
CUMULATIVE TOTAL RETURNS FOR THE LIPPER LARGE-CAP SUPERGROUP AVERAGE
WERE, 1.12%, 13.48%, 176.32%, AND 374.41%, RESPECTIVELY; AND THE ONE
YEAR, FIVE YEAR AND 10 YEAR AVERAGE ANNUAL TOTAL RETURNS WERE 13.48%,
22.13%, 16.55%, RESPECTIVELY.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Historically, presidential election
years have been kind to investors.
The stock market - as measured
by the Dow Jones Industrial Average
- posted positive returns in every
election year but three in the past
60 years. At the outset of 2000, it
appeared that tradition would
continue, as the Dow, the Standard &
Poor's 500SM Index and the
NASDAQ Composite Index reached
record highs in the year's first
quarter. Beginning in mid-March,
however, a major correction in the
technology sector, coupled with
rampant inflation fears and several
interest-rate hikes by the Federal
Reserve Board, sparked a dramatic
decline in the equity markets, leaving
all of the aforementioned indexes
with negative returns by mid-year.
For the six months ending June 30,
2000, the Dow was down 8.42%,
the S&P 500(registered trademark) declined 0.42% and
the tech-heavy NASDAQ index -
which in 1999 set a record for the
best one-year return of any major
U.S. market index - had a negative
2.44% return. Whether the equity
markets can rally during the second
half of the year remains to be seen,
but early indicators looked
promising. Technology took off
again in the final month of the
period, with the NASDAQ posting a
16.64% return in June. Also,
economic indicators suggested the
economy was finally slowing,
leaving many investors hopeful that
the Fed's series of rate hikes had
come to an end.
(photograph of Tim Heffernan)
An interview with Tim Heffernan, Portfolio Manager of Fidelity
Exchange Fund
Q. HOW DID THE FUND PERFORM, TIM?
A. For the six months that ended June 30, 2000, the fund posted a
total return of 1.06%, outperforming the -0.42% return for the
Standard & Poor's 500 Index and the -0.47% return for the growth &
income funds average, as tracked by Lipper Inc. During the 12-month
period that ended June 30, 2000, the fund returned 2.96%, trailing the
7.25% return of the S&P 500 index but ahead of the 2.15% return for
the Lipper peer group.
Q. WHAT HELPED THE FUND OUTPERFORM THE INDEX AND PEER GROUP DURING THE
SIX-MONTH PERIOD?
A. A significant boost to fund performance was the fund's
overweighting in health, energy and consumer services stocks. The
health sector rebounded after being out of favor for some time. Stocks
such as American Home Products, Pfizer, Eli Lilly and Schering-Plough
came to life as investors sought less-volatile stocks during a
correction in technology shares in the spring. Similarly, the fund's
overweighted stake in the downtrodden energy sector enhanced relative
performance as oil prices hit historical highs during the period as a
result of a supply shortage. Further, the fund's holdings in what were
otherwise weak sectors - including basic industries and media and
leisure - outperformed those of the index.
Q. WHAT OTHER FACTORS INFLUENCED PERFORMANCE?
A. Not owning stocks in several underperforming industries - namely
real-estate construction and precious metals - allowed the fund to
outdistance its benchmark. Conversely, the fund's underweighting in
technology relative to the index was our biggest detractor.
Specifically, the fund's underweighting in several semiconductor
stocks - such as Intel, Applied Materials, Analog Devices and Texas
Instruments - hurt the fund. However, we were rewarded for our
overweighting in computer servicing and imaging provider
Hewlett-Packard, as investors reacted positively to a number of the
firm's new strategic alliances.
Q. WHAT OTHER STOCKS WERE TOP PERFORMERS?
A. Walt Disney, one of the fund's largest positions, was the
second-largest contributor. Shares of the entertainment company rose
steadily after several analysts upgraded the stock in March and April,
and the company released a positive earnings report in May. The
primary reason for strength in the stock was due to its media networks
unit, particularly ABC, which won consistent ratings battles thanks to
"Who Wants to Be a Millionaire." Positive research reports on a new
drug to treat sepsis - a bacterial infection that leads to
cardiovascular abnormalities - boosted Eli Lilly, while American Home
Products rose on a stronger-than-expected earnings announcement.
Shares of Pfizer rose briskly in the second half of the period on
positive sentiment concerning the company's acquisition of
Warner-Lambert.
Q. WHAT STOCKS DISAPPOINTED?
A. Weaker operating margins for telephone handsets compared to its
competitors hurt the performance of Motorola, the fund's biggest
underachiever. Additionally, shares of Procter & Gamble suffered from
disappointing earnings, which were due in part to higher operating
costs.
Q. WHAT'S YOUR OUTLOOK?
A. Much of the market's strength during the next six months will
depend on the U.S. economy and the Federal Reserve Board's decisions
regarding interest rates. At the end of the period, we began to see
some economic reports that suggested a slowdown in the economy may be
in its infant stage. If that slowdown is realized, the fund should be
well-positioned to benefit from a broadening of the market due to our
diversification across a variety of sectors.
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.
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF JUNE 30,
2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
General Electric Co. 9.1 8.6
Hewlett-Packard Co. 7.2 6.6
Walt Disney Co. 4.4 3.3
American Express Co. 4.1 4.4
Exxon Mobil Corp. 3.5 3.8
Johnson & Johnson 3.2 2.8
Bristol-Myers Squibb Co. 3.0 3.3
McDonald's Corp. 2.7 3.3
American Home Products Corp. 2.7 1.7
Pfizer, Inc. 2.6 2.2
42.5 40.0
TOP FIVE MARKET SECTORS AS OF
JUNE 30, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Health 19.5 16.8
Media & Leisure 15.2 15.2
Technology 13.2 12.7
Industrial Machinery & 10.8 11.0
Equipment
Energy 10.3 10.0
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF JUNE 30, 2000 * AS OF DECEMBER 31, 1999 **
Stocks 97.5% Stocks 97.6%
Short-Term Investments and Short-Term Investments and
Net Other Assets 2.5% Net Other Assets 2.4%
* FOREIGN INVESTMENTS 3.1% ** FOREIGN INVESTMENTS 2.9%
Row: 1, Col: 1, Value: 97.5 Row: 1, Col: 1, Value: 97.59999999999999
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0 Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 0.0 Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0 Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0 Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 2.5 Row: 1, Col: 8, Value: 2.4
</TABLE>
INVESTMENTS JUNE 30, 2000 (UNAUDITED)
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 97.5%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 1.1%
AEROSPACE & DEFENSE - 0.9%
United Technologies Corp. 53,344 $ 3,140,628
DEFENSE ELECTRONICS - 0.2%
Raytheon Co.:
Class A 1,913 37,184
Class B 35,627 685,820
723,004
TOTAL AEROSPACE & DEFENSE 3,863,632
BASIC INDUSTRIES - 1.3%
CHEMICALS & PLASTICS - 1.3%
Air Products & Chemicals, 95,268 2,935,445
Inc.
Cabot Corp. 53,400 1,455,150
4,390,595
DURABLES - 2.8%
AUTOS, TIRES, & ACCESSORIES -
1.9%
Dana Corp. 80,670 1,709,196
Delphi Automotive Systems 18,280 266,203
Corp.
General Motors Corp. 19,671 1,142,147
SPX Corp. 27,908 3,375,124
6,492,670
CONSUMER DURABLES - 0.7%
Minnesota Mining & 30,000 2,475,000
Manufacturing Co.
CONSUMER ELECTRONICS - 0.2%
General Motors Corp. Class H 6,905 605,914
(a)
TOTAL DURABLES 9,573,584
ENERGY - 10.3%
ENERGY SERVICES - 3.1%
Halliburton Co. 132,094 6,233,186
Schlumberger Ltd. (NY Shares) 53,568 3,997,512
Transocean Sedco Forex, Inc. 10,370 554,147
10,784,845
OIL & GAS - 7.2%
BP Amoco PLC sponsored ADR 55,996 3,167,274
Chevron Corp. 56,410 4,784,273
Exxon Mobil Corp. 152,616 11,980,356
Kerr-McGee Corp. 13,480 794,478
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Royal Dutch Petroleum Co. (NY 60,000 $ 3,693,750
Shares)
Union Pacific Resources 13,243 291,346
Group, Inc.
24,711,477
TOTAL ENERGY 35,496,322
FINANCE - 6.8%
CREDIT & OTHER FINANCE - 4.1%
American Express Co. 273,183 14,239,664
INSURANCE - 1.9%
Berkshire Hathaway, Inc. 2,452 4,315,520
Class B (a)
Highlands Insurance Group, 370 3,469
Inc. (a)
Torchmark Corp. 83,232 2,054,790
6,373,779
SECURITIES INDUSTRY - 0.8%
Lehman Brothers Holdings, 18,357 1,735,884
Inc.
Waddell & Reed Financial, Inc.:
Class A 7,102 233,034
Class B 30,574 888,557
2,857,475
TOTAL FINANCE 23,470,918
HEALTH - 19.5%
DRUGS & PHARMACEUTICALS - 13.8%
American Home Products Corp. 156,668 9,204,245
Bristol-Myers Squibb Co. 180,666 10,523,795
Eli Lilly & Co. 48,608 4,854,724
Merck & Co., Inc. 67,238 5,152,112
Pfizer, Inc. 187,249 8,987,952
Schering-Plough Corp. 177,593 8,968,447
47,691,275
MEDICAL EQUIPMENT & SUPPLIES
- 5.7%
Becton, Dickinson & Co. 99,468 2,853,488
Guidant Corp. (a) 114,574 5,671,413
Johnson & Johnson 107,095 10,910,303
19,435,204
TOTAL HEALTH 67,126,479
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - 10.8%
ELECTRICAL EQUIPMENT - 9.1%
General Electric Co. 591,204 $ 31,333,808
INDUSTRIAL MACHINERY &
EQUIPMENT - 1.5%
Parker-Hannifin Corp. 135,907 4,654,815
The Stanley Works 28,748 682,765
5,337,580
POLLUTION CONTROL - 0.2%
Waste Management, Inc. 36,250 688,750
TOTAL INDUSTRIAL MACHINERY & 37,360,138
EQUIPMENT
MEDIA & LEISURE - 15.2%
BROADCASTING - 0.4%
Cox Communications, Inc. 28,976 1,320,219
Class A (a)
ENTERTAINMENT - 5.0%
Viacom, Inc. Class B 30,566 2,084,219
(non-vtg.) (a)
Walt Disney Co. 389,494 15,117,236
17,201,455
PUBLISHING - 7.1%
Gannett Co., Inc. 107,228 6,413,575
Harcourt General, Inc. 40,000 2,175,000
Knight-Ridder, Inc. 60,000 3,191,250
McGraw-Hill Companies, Inc. 139,024 7,507,296
Media General, Inc. Class A 7,482 363,345
Tribune Co. 136,530 4,778,550
24,429,016
RESTAURANTS - 2.7%
McDonald's Corp. 283,026 9,322,169
TOTAL MEDIA & LEISURE 52,272,859
NONDURABLES - 9.7%
BEVERAGES - 3.2%
Anheuser-Busch Companies, 81,409 6,080,235
Inc.
The Coca-Cola Co. 83,303 4,784,716
10,864,951
FOODS - 1.8%
Agribrands International, 2,134 89,495
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - CONTINUED
FOODS - CONTINUED
General Mills, Inc. 66,558 $ 2,545,844
Sara Lee Corp. 192,510 3,717,849
6,353,188
HOUSEHOLD PRODUCTS - 3.7%
Colgate-Palmolive Co. 71,695 4,292,738
Gillette Co. 134,571 4,701,574
Procter & Gamble Co. 66,700 3,818,575
12,812,887
TOBACCO - 1.0%
Philip Morris Companies, Inc. 132,450 3,518,203
TOTAL NONDURABLES 33,549,229
RETAIL & WHOLESALE - 1.4%
APPAREL STORES - 0.2%
Payless ShoeSource, Inc. (a) 13,140 673,425
GENERAL MERCHANDISE STORES -
0.8%
Neiman Marcus Group, Inc. 12,052 334,443
Class B (a)
The May Department Stores Co. 100,339 2,408,136
2,742,579
GROCERY STORES - 0.4%
SUPERVALU, Inc. 70,160 1,337,425
TOTAL RETAIL & WHOLESALE 4,753,429
TECHNOLOGY - 13.2%
COMPUTER SERVICES & SOFTWARE
- 1.1%
Microsoft Corp. (a) 49,000 3,920,000
COMPUTERS & OFFICE EQUIPMENT
- 8.3%
Hewlett-Packard Co. 197,999 24,725,125
International Business 36,388 3,986,760
Machines Corp.
28,711,885
ELECTRONIC INSTRUMENTS - 1.7%
Agilent Technologies, Inc. 77,153 5,690,034
ELECTRONICS - 2.1%
Motorola, Inc. 245,718 7,141,179
TOTAL TECHNOLOGY 45,463,098
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - 0.2%
RAILROADS - 0.2%
Union Pacific Corp. 19,090 $ 709,909
UTILITIES - 5.2%
CELLULAR - 0.9%
ALLTEL Corp. 1,756 108,762
Sprint Corp. - PCS Group 50,000 2,975,000
Series 1 (a)
3,083,762
GAS - 0.8%
Williams Companies, Inc. 70,040 2,919,793
TELEPHONE SERVICES - 3.5%
Sprint Corp. - FON Group 100,000 5,100,000
WorldCom, Inc. (a) 149,268 6,847,670
11,947,670
TOTAL UTILITIES 17,951,225
TOTAL COMMON STOCKS 335,981,417
(Cost $21,168,381)
CASH EQUIVALENTS - 2.5%
MATURITY AMOUNT
Investments in repurchase $ 8,699,769 8,695,000
agreements (U.S. Treasury
Obligations), in a joint
trading account at 6.58%,
dated 6/30/00 due 7/3/00
(Cost $8,695,000)
TOTAL INVESTMENT PORTFOLIO - 344,676,417
100.0%
(Cost $29,863,381)
NET OTHER ASSETS - 0.0% 26,019
NET ASSETS - 100% $ 344,702,436
</TABLE>
LEGEND
(a) Non-income producing
INCOME TAX INFORMATION
At June 30, 2000, the aggregate cost of investment securities for
income tax purposes was $29,863,381. Net unrealized appreciation
aggregated $314,813,036, of which $316,060,389 related to appreciated
investment securities and $1,247,353 related to depreciated investment
securities.
At December 31, 1999, the fund had a capital loss carryforward of
approximately $20,000 all of which will expire on December 31, 2007.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
JUNE 30, 2000 (UNAUDITED)
ASSETS
Investment in securities, at $ 344,676,417
value (including repurchase
agreements of $8,695,000)
(cost $29,863,381) - See
accompanying schedule
Cash 705
Receivable for investments 154,831
sold
Dividends receivable 228,087
TOTAL ASSETS 345,060,040
LIABILITIES
Payable for fund shares $ 164,349
redeemed
Accrued management fee 155,061
Other payables and accrued 38,194
expenses
TOTAL LIABILITIES 357,604
NET ASSETS $ 344,702,436
Net Assets consist of:
Paid in capital $ 18,787,638
Distributions in excess of (63,731)
net investment income
Accumulated undistributed net 11,165,493
realized gain (loss) on
investments
Net unrealized appreciation 314,813,036
(depreciation) on investments
NET ASSETS, for 1,257,914 $ 344,702,436
shares outstanding
NET ASSET VALUE, offering $274.03
price and redemption price
per share ($344,702,436
(divided by) 1,257,914
shares)
STATEMENT OF OPERATIONS
SIX MONTHS ENDED JUNE 30,
2000 (UNAUDITED)
INVESTMENT INCOME $ 1,970,749
Dividends
Interest 259,401
TOTAL INCOME 2,230,150
EXPENSES
Management fee $ 915,967
Transfer agent fees 115,612
Accounting fees and expenses 380
Non-interested trustees' 721
compensation
Custodian fees and expenses 4,268
Audit 15,534
Legal 604
Miscellaneous 79
Total expenses before 1,053,165
reductions
Expense reductions (4,284) 1,048,881
NET INVESTMENT INCOME 1,181,269
REALIZED AND UNREALIZED GAIN 11,185,635
(LOSS)
Net realized gain (loss) on
investment securities
Change in net unrealized (8,996,969)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) 2,188,666
NET INCREASE (DECREASE) IN $ 3,369,935
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED JUNE 30, YEAR ENDED DECEMBER 31, 1999
2000 (UNAUDITED)
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 1,181,269 $ 3,055,002
income
Net realized gain (loss) 11,185,635 33,215,397
Change in net unrealized (8,996,969) (655,818)
appreciation (depreciation)
NET INCREASE (DECREASE) IN 3,369,935 35,614,581
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (1,267,264) (3,058,436)
from net investment income
Share transactions
Reinvestment of distributions 314,979 891,613
Cost of shares redeemed (11,964,672) (37,886,876)
NET INCREASE (DECREASE) IN (11,649,693) (36,995,263)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) (9,547,022) (4,439,118)
IN NET ASSETS
NET ASSETS
Beginning of period 354,249,458 358,688,576
End of period (including $ 344,702,436 $ 354,249,458
under (over) distribution of
net investment income of
$(63,731) and $22,264,
respectively)
OTHER INFORMATION
Shares
Issued in reinvestment of 1,160 3,392
distributions
Redeemed (44,886) (144,471)
Net increase (decrease) (43,726) (141,079)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
SIX MONTHS ENDED JUNE 30, 2000 YEARS ENDED DECEMBER 31,
(UNAUDITED) 1999 1998 1997 1996
SELECTED PER-SHARE DATA
Net asset value, beginning $ 272.16 $ 248.62 $ 211.50 $ 159.39 $ 134.59
of period
Income from Invest- ment
Operations
Net investment income .92 D 2.21 D 2.39 D 2.46 D 2.59
Net realized and unrealized 1.95 23.58 37.17 52.10 25.58
gain (loss)
Total from investment 2.87 25.79 39.56 54.56 28.17
operations
Less Distributions
From net investment income (1.00) (2.25) (2.44) (2.45) (2.60)
From net realized gain - - - - (.77)
Total distributions (1.00) (2.25) (2.44) (2.45) (3.37)
Net asset value, end of $ 274.03 $ 272.16 $ 248.62 $ 211.50 $ 159.39
period
TOTAL RETURN B, C 1.06% 10.41% 18.74% 34.33% 21.00%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 344,702 $ 354,249 $ 358,689 $ 320,091 $ 255,136
(000 omitted)
Ratio of expenses to average .62% A .62% .62% .63% .64%
net assets
Ratio of expenses to average .62% A .62% .62% .63% .63% E
net assets after expense
reductions
Ratio of net invest- ment .70% A .84% 1.04% 1.31% 1.72%
income to average net assets
Portfolio turnover rate 0% 1% 0% 0% 0%
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED DECEMBER 31,
1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 102.72
of period
Income from Invest- ment
Operations
Net investment income 2.45
Net realized and unrealized 33.59
gain (loss)
Total from investment 36.04
operations
Less Distributions
From net investment income (2.45)
From net realized gain (1.72)
Total distributions (4.17)
Net asset value, end of $ 134.59
period
TOTAL RETURN B, C 35.77%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 232,768
(000 omitted)
Ratio of expenses to average .63%
net assets
Ratio of expenses to average .63%
net assets after expense
reductions
Ratio of net invest- ment 2.05%
income to average net assets
Portfolio turnover rate 0%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
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.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 2000 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Exchange Fund (the fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company organized as a Massachusetts business trust and is authorized
to issue 10 million shares. Shares of the fund are not currently
available for purchase. 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. 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. Foreign securities are valued based
on quotations from the principal market in which such securities are
normally traded. If trading or events occurring in other markets after
the close of the principal market in which foreign securities are
traded, and before the close of the business of the fund, are expected
to materially affect the value of those securities, then they are
valued at their fair value taking this trading or these events into
account. Fair value is determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. 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. 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. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. 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."
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the fund is
informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of
such taxes is uncertain.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for redemptions in kind and capital loss carryforwards.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Distributions in excess of net investment income and accumulated
undistributed net realized gain (loss) on investments may include
temporary book and tax basis differences that 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.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other
affiliated entities of Fidelity Management & Research Company (FMR),
may transfer uninvested cash 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,
or other obligations found to be satisfactory by FMR 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.
3. PURCHASES AND SALES OF INVESTMENTS.
Sales of securities other than short-term securities aggregated
$11,883,518, of which $11,883,518 represents the value of securities
delivered in redemption of fund shares. The realized gain of
$11,185,723 on securities delivered in redemption of fund shares is
not taxable to the fund. There were no purchases of securities during
the period.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a fee
at a rate of 1/20 of 1% per month (which is equivalent to an annual
rate of 6/10 of 1%) of the fund's average net assets determined as of
the close of business on each business day throughout the month. In
addition, under the Management Contract, FMR provides portfolio
accounting and bookkeeping services to the fund and determines the net
asset value per share of the fund. The management fee is subject to a
reduction to the extent that the monthly average net assets of all
mutual funds advised by FMR exceed $4 billion in any month. The
management fee payable by the fund on its portion of the excess is
reduced by 10%. For the period, the management fee was equivalent to
an annualized rate of .54% of average net assets.
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 annualized rate of .07% of average net assets.
5. EXPENSE REDUCTIONS.
Through arrangements with the fund's custodian and transfer agent,
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 $10 and $4,274,
respectively, under these arrangements.
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(registered trademark))
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
INVESTMENT ADVISER
Fidelity Management &
Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Robert A. Lawrence, Vice President
Eric D. Roiter, Secretary
Robert A. Dwight, 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 *
ADVISORY BOARD
J. Michael Cook
Abigail P. Johnson
Marie L. Knowles
* INDEPENDENT TRUSTEES
EXC-SANN-0800 108696
1.705567.102
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S GROWTH AND INCOME FUNDS
Balanced Fund
Convertible Securities Fund
Equity-Income Fund
Equity-Income II Fund
Fidelity (registered trademark) Fund
Global Balanced Fund
Growth & Income Portfolio
Growth & Income II Portfolio
Puritan(registered trademark) Fund
Real Estate Investment Portfolio
Utilities Fund
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(registered trademark)) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
