SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT (No. 2-69972)
UNDER THE SECURITIES ACT OF 1933 [X]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 59 [X]
and
REGISTRATION STATEMENT (No. 811-3114)
UNDER THE INVESTMENT COMPANY ACT OF 1940 [X]
Amendment No. [ ]
Fidelity Select Portfolios
(Exact Name of Registrant as Specified in Charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address Of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number: 617-563-7000
Arthur S. Loring, Secretary
82 Devonshire Street
Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective
( ) immediately upon filing pursuant to paragraph (b).
(X) on (April 29, 1997) pursuant to paragraph (b).
( ) 60 days after filing pursuant to paragraph (a)(1).
( ) on ( ) pursuant to paragraph (a)(1) of Rule 485.
( ) 75 days after filing pursuant to paragraph (a)(2).
( ) on ( ) pursuant to paragraph (a)(2) of Rule 485.
If appropriate, check the following box:
( ) this post-effective amendment designates a new effective date for a
previously filed
post-effective amendment.
Registrant has filed a declaration pursuant to Rule 24f-2 under the
Investment Company Act of 1940 and intends to file the Notice required by
such Rule before April 29, 1997.
FIDELITY SELECT PORTFOLIOS
CROSS REFERENCE SHEET
FORM N-1A
ITEM NUMBER PROSPECTUS SECTION
<TABLE>
<CAPTION>
<S> <C> <C> <C>
1 .............................. Cover Page
2 a .............................. Expenses
b, c .............................. Contents; The Funds at a Glance; Who May Want
to Invest
3 a .............................. Financial Highlights
b .............................. *
c .............................. Performance
d .............................. Performance
4 a i............................. Charter
ii........................... The Funds at a Glance; Investment Principles and
Risks
b .............................. Investment Principles and Risks
c .............................. Who May Want to Invest; Investment Principles
and Risks
5 a .............................. Charter
b i............................. Cover Page; The Funds at a Glance; Charter;
Doing Business with Fidelity
ii........................... Charter
iii.......................... Expenses; Breakdown of Expenses
c .............................. Charter
d .............................. Charter; Breakdown of Expenses
e .............................. Cover Page; Charter
f .............................. Expenses
g i............................. Charter
.
ii............................ *
..
5A .............................. Performance
6 a i............................. Charter
ii........................... How to Buy Shares; How to Sell Shares;
Transaction Details; Exchange Restrictions
iii.......................... Charter
b ............................. Charter
c .............................. Transactions Details; Exchange Restrictions
d .............................. *
e .............................. Doing Business with Fidelity; How to Buy Shares;
How to Sell Shares; Investor Services
f, g .............................. Dividends, Capital Gains, and Taxes
7 a .............................. Cover Page; Charter
b .............................. Expenses; How to Buy Shares; Transaction Details
c .............................. Sales Charge Reductions and Waivers
d .............................. How to Buy Shares
e .............................. *
f .............................. *
8 .............................. How to Sell Shares; Investor Services; Transaction
Details; Exchange Restrictions
9 .............................. *
</TABLE>
* Not Applicable
FIDELITY SELECT PORTFOLIOS
CROSS REFERENCE SHEET
(CONTINUED)
FORM N-1A
ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION
<TABLE>
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10, 11 ............................ Cover Page
12 ............................ Description of the Trust
13 a - c ............................ Investment Policies and Limitations
d ............................ Portfolio Transactions
14 a - c ............................ Trustees and Officers
15 a, b ............................ *
c ............................ Trustees and Officers
16 a i........................... FMR, Portfolio Transactions
ii.......................... Trustees and Officers
iii......................... Management Contracts
b ............................ Management Contracts
c, d ............................ Contracts with FMR Affiliates
e ............................ *
f ............................ *
g ............................ *
h ............................ Description of the Trust
i ............................ Contracts with FMR Affiliates
17 a - c ............................ Portfolio Transactions
d, e ............................ *
18 a ............................ Description of the Trust
b ............................ *
19 a ............................ Additional Purchase and Redemption Information
b ............................ Additional Purchase and Redemption Information;
Valuation of Portfolio Securities
c ............................ *
20 ............................ Distributions and Taxes
21 a, b ............................ Contracts with FMR Affiliates
c ............................ *
22 a, b ............................ Performance
23 ............................ Financial Statements
</TABLE>
* Not Applicable
Please read this prospectus before investing, and keep it on file for
future reference. It contains important information, including how each
fund invests and the services available to shareholders.
To learn more about each fund and its investments, you can obtain a copy of
the funds' most recent financial report and portfolio listing, or a copy
of the Statement of Additional Information (SAI) dated April 29, 1997.
The SAI has been filed with the Securities and Exchange Commission (SEC)
and is available along with other related materials on the SEC's
Internet Web site (http://www.sec.gov). The SA I is incorporated herein
by reference (legally forms a part of the prospectus). For a free copy of
either document, call Fidelity at 1-800-544-8888.
INVESTMENTS IN THE MONEY MARKET FUND ARE NEITHER INSURED NOR GUARANTEED BY
THE U.S. GOVERNMENT, AND THERE CAN BE NO ASSURANCE THAT THE FUND WILL
MAINTAIN A STABLE $1.00 SHARE PRICE.
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 AMOUNTED INVESTED.
LIKE ALL MUTUAL FUNDS, THESE
SECURITIES HAVE NOT BEEN
APPROVED OR DISAPPROVED BY
THE SECURITIES AND EXCHANGE
COMMISSION OR ANY STATE
SECURITIES COMMISSION, NOR
HAS THE SECURITIES AND
EXCHANGE COMMISSION OR ANY
STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY
OR ADEQUACY OF THIS
PROSPECTUS. ANY
REPRESENTATION TO THE
CONTRARY IS A CRIMINAL
OFFENSE.
SEL-pro-0497
Each stock fund seeks to increase the value of your investment over the
long-term by investing mainly in equity securities of companies within a
particular industry or group of industries. The money market fund seeks
high current income while maintaining a stable $1.00 share price by
investing in high-quality, short-term money market securities.
FIDELITY
SELECT
PORTFOLIOS(REGISTERED TRADEMARK)
Fund Trading
Number Symbol
AIR TRANSPORTATION PORTFOLIO 034 FSAIX
AMERICAN GOLD PORTFOLIO 141 FSAGX
AUTOMOTIVE PORTFOLIO 502 FSAVX
BIOTECHNOLOGY PORTFOLIO 142 FBIOX
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO 068 FSLBX
CHEMICALS PORTFOLIO 069 FSCHX
COMPUTERS PORTFOLIO 007 FDCPX
CONSTRUCTION AND HOUSING PORTFOLIO 511 FSHOX
CONSUMER INDUSTRIES PORTFOLIO 517 FSCPX
CYCLICAL INDUSTRIES PORTFOLIO 515
DEFENSE AND AEROSPACE PORTFOLIO 067 FSDAX
DEVELOPING COMMUNICATIONS PORTFOLIO 518 FSDCX
ELECTRONICS PORTFOLIO 008 FSELX
ENERGY PORTFOLIO 060 FSENX
ENERGY SERVICE PORTFOLIO 143 FSESX
ENVIRONMENTAL SERVICES PORTFOLIO 516 FSLEX
FINANCIAL SERVICES PORTFOLIO 066 FIDSX
FOOD AND AGRICULTURE PORTFOLIO 009 FDFAX
HEALTH CARE PORTFOLIO 063 FSPHX
HOME FINANCE PORTFOLIO 198 FSVLX
INDUSTRIAL EQUIPMENT PORTFOLIO 510 FSCGX
INDUSTRIAL MATERIALS PORTFOLIO 509 FSDPX
INSURANCE PORTFOLIO 145 FSPCX
LEISURE PORTFOLIO 062 FDLSX
MEDICAL DELIVERY PORTFOLIO 505 FSHCX
MULTIMEDIA PORTFOLIO 503 FBMPX
NATURAL GAS PORTFOLIO 513 FSNGX
NATURAL RESOURCES PORTFOLIO 514
PAPER AND FOREST PRODUCTS PORTFOLIO 506 FSPFX
PRECIOUS METALS AND MINERALS PORTFOLIO 061 FDPMX
REGIONAL BANKS PORTFOLIO 507 FSRBX
RETAILING PORTFOLIO 146 FSRPX
SOFTWARE AND COMPUTER SERVICES PORTFOLIO 028 FSCSX
TECHNOLOGY PORTFOLIO 064 FSPTX
TELECOMMUNICATIONS PORTFOLIO 096 FSTCX
TRANSPORTATION PORTFOLIO 512 FSRFX
UTILITIES GROWTH PORTFOLIO 065 FSUTX
MONEY MARKET PORTFOLIO 085 FSMMKT
PROSPECTUS
APRIL 29, 199 7 (FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET,
BOSTON, MA 02109
CONTENTS
<TABLE>
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KEY FACTS THE FUNDS AT A GLANCE
WHO MAY WANT TO INVEST
EXPENSES Each fund's sales charge (load) and its
yearly operating expenses.
FINANCIAL HIGHLIGHTS A summary of each fund's
financial data.
PERFORMANCE How each fund has done over time.
THE FUNDS IN DETAIL CHARTER How each fund is organized.
INVESTMENT PRINCIPLES AND RISKS Each fund's overall
approach to investing.
BREAKDOWN OF EXPENSES How operating costs are
calculated and what they include.
YOUR ACCOUNT DOING BUSINESS WITH FIDELITY
TYPES OF ACCOUNTS Different ways to set up your
account, including tax-sheltered retirement plans.
HOW TO BUY SHARES Opening an account and making
additional investments.
HOW TO SELL SHARES Taking money out and closing
your account.
INVESTOR SERVICES Services to help you manage your
account.
SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES
TRANSACTION DETAILS Share price calculations and the
timing of purchases and redemptions.
EXCHANGE RESTRICTIONS
SALES CHARGE REDUCTIONS AND WAIVERS
APP ENDIX A
</TABLE>
KEY FACTS
THE FUNDS AT A GLANCE
STOCK FUNDS' GOAL: Capital appreciation (increase in the value of a fund's
shares). As with any mutual fund, there is no assurance that a fund will
achieve its goal.
MANAGEMENT: Fidelity Management & Research Company (FMR) is the management
arm of Fidelity Investments, which was established in 1946 and is now
America's largest mutual fund manager. Foreign affiliates of FMR may help
choose investments for some of the stock funds. FMR Texas Inc. ( FMR
Texas ), a subsidiary of FMR, chooses investments for the money market
fund.
AIR TRANSPORTATION
STRATEGY: Invests mainly in equity securities of companies engaged in the
regional, national, and international movement of passengers, mail, and
freight via aircraft.
SIZE: As of February 2 8 , 1997 the fund had over $ 35 million
in assets.
AMERICAN GOLD
STRATEGY: Invests mainly in equity securities of companies engaged in
exploration, mining, processing, or dealing in gold, or, to a lesser
degree, in silver, platinum, diamonds, or other precious metals and
minerals, and may also invest directly in precious metals.
SIZE: As of February 2 8 , 1997 the fund had over $ 428 million
in assets.
AUTOMOTIVE
STRATEGY: Invests mainly in equity securities of companies engaged in the
manufacture, marketing, or sale of automobiles, trucks, specialty vehicles,
parts, tires, and related services.
SIZE: As of February 2 8 , 1997 the fund had over $ 86 million
in assets.
BIOTECHNOLOGY
STRATEGY: Invests mainly in equity securities of companies engaged in the
research, development, and manufacture of various biotechnological
products, services, and processes.
SIZE: As of February 2 8 , 1997 the fund had over $674 million
in assets.
BROKERAGE AND INVESTMENT MANAGEMENT
STRATEGY: Invests mainly in equity securities of companies engaged in stock
brokerage, commodity brokerage, investment banking, tax-advantaged
investment or investment sales, investment management, or related
investment advisory services.
SIZE: As of February 2 8 , 1997 the fund had over $ 458 million
in assets.
CHEMICALS
STRATEGY: Invests mainly in equity securities of companies engaged in the
research, development, manufacture, or marketing of products or services
related to the chemical process industries.
SIZE: As of February 2 8 , 1997 the fund had over $ 111 million
in assets.
COMPUTERS
STRATEGY: Invests mainly in equity securities of companies engaged in
research, design, development, manufacture, or distribution of products,
processes, or services that relate to currently available or experimental
hardware technology within the computer industry.
SIZE: As of February 2 8 , 1997 the fund had over $ 604 million
in assets.
CONSTRUCTION AND HOUSING
STRATEGY: Invests mainly in equity securities of companies engaged in the
design and construction of residential, commercial, industrial, and public
works facilities, as well as companies engaged in the manufacture, supply,
distribution, or sale of products or services to these construction
industries.
SIZE: As of February 2 8 , 1997 the fund had over $ 30 million
in assets.
CONSUM ER IN DUSTRIES
STRATEGY: Invests mainly in equity securities of companies engaged in the
manufacture and distribution of goods to consumers.
SIZE: As of February 2 8 , 1997 the fund had over $ 18 million
in assets.
CYCLICAL INDUSTRIES
STRATEGY: Invests mainly in equity securities of companies engaged in
the research, development, manufacture, distribution, supply, or sale of
materials, equipment, products or services related to cyclical
industries.
DEFENSE AND AEROSPACE
STRATEGY: Invests mainly in equity securities of companies engaged in the
research, manufacture, or sale of products or services related to the
defense or aerospace industries.
SIZE: As of February 2 8 , 1997 the fund had over $ 68 million
in assets.
DEVELOPING COMMUNICATIONS
STRATEGY: Invests mainly in equity securities of companies engaged in the
development, manufacture, or sale of emerging communications services or
equipment.
SIZE: As of February 2 8 , 1997 the fund had over $ 220 million
in assets.
ELECTRONICS
STRATEGY: Invests mainly in equity securities of companies engaged in the
design, manufacture, or sale of electronic components, equipment vendors to
electronic component manufacturers, electronic component distributors, and
electronic instruments and electronics systems vendors.
SIZE: As of February 2 8 , 1997 the fund had over $ 1.7 b illion
in assets.
ENERGY
STRATEGY: Invests mainly in equity securities of companies in the energy
field, including the conventional areas of oil, gas, electricity, and coal,
and newer sources of energy such as nuclear, geothermal, oil shale, and
solar power.
SIZE: As of February 2 8 , 1997 the fund had over $203 million
in assets.
ENERGY SERVICE
STRATEGY: Invests mainly in equity securities of companies in the energy
service field, including those that provide services and equipment to the
conventional areas of oil, gas, electricity, and coal, and newer sources of
energy such as nuclear, geothermal, oil shale, and solar power.
SIZE: As of February 2 8 , 1997 the fund had over $439 million
in assets.
ENVIRONMENTAL SERVICES
STRATEGY: Invests mainly in equity securities of companies engaged in the
research, development, manufacture, or distribution of products, processes,
or services related to waste management or pollution control.
SIZE: As of February 2 8 , 1997 the fund had over $ 32 million
in assets.
FINANCIAL SERVICES
STRATEGY: Invests mainly in equity securities of companies providing
financial services to consumers and industry.
SIZE: As of February 2 8 , 1997 the fund had over $ 426 million
in assets.
FOOD AND AGRICULTURE
STRATEGY: Invests mainly in equity securities of companies engaged in the
manufacture, sale, or distribution of food and beverage products,
agricultural products, and products related to the development of new food
technologies.
SIZE: As of February 2 8 , 1997 the fund had over $ 223 million
in assets.
HEALTH CARE
STRATEGY: Invests mainly in equity securities of companies engaged in the
design, manufacture, or sale of products or services used for, or in
connection with, health care or medicine.
SIZE: As of February 2 8 , 1997 the fund had over $ 1.3 b illion
in assets.
HOME FINANCE
STRATEGY: Invests mainly in equity securities of companies engaged in
investing in real estate, usually through mortgages and other
consumer-related loans.
SIZE: As of February 2 8 , 1997 the fund had over $ 1.1 billion
in assets.
INDUSTRIAL EQUIPMENT
STRATEGY: Invests mainly in equity securities of companies engaged in the
manufacture, distribution, or service of products and equipment for the
industrial sector, including integrated producers of capital equipment,
parts suppliers, and subcontractors.
SIZE: As of February 2 8 , 1997 the fund had over $ 102 million
in assets.
INDUSTRIAL MATERIALS
STRATEGY: Invests mainly in equity securities of companies engaged in the
manufacture, mining, processing, or distribution of raw materials and
intermediate goods used in the industrial sector.
SIZE: As of February 2 8 , 1997 the fund had over $ 66 million
in assets.
INSURANCE
STRATEGY: Invests mainly in equity securities of companies engaged in
underwriting, reinsuring, selling, distributing, or placing of property and
casualty, life, or health insurance.
SIZE: As of February 2 8 , 1997 the fund had over $ 42 million
in assets.
LEISURE
STRATEGY: Invests mainly in equity securities of companies engaged in the
design, production, or distribution of goods or services in the leisure
industries.
SIZE: As of February 2 8 , 1997 the fund had over $ 98 million
in assets.
MEDICAL DELIVERY
STRATEGY: Invests mainly in equity securities of companies engaged in the
ownership or management of hospitals, nursing homes, health maintenance
organizations, and other companies specializing in the delivery of health
care services.
SIZE: As of February 2 8 , 1997 the fund had over $ 192 million
in assets.
MULTIMEDIA
STRATEGY: Invests mainly in equity securities of companies engaged in the
development, production, sale, and distribution of goods or services used
in the broadcast and media industries.
SIZE: As of February 2 8 , 1997 the fund had over $ 54 million
in assets.
NATURAL GAS
STRATEGY: Invests mainly in equity securities of companies engaged in the
production, transmission, and distribution of natural gas, and involved in
the exploration of potential natural gas sources, as well as those
companies that provide services and equipment to natural gas producers,
refineries, cogeneration facilities, converters, and distributors.
SIZE: As of February 2 8 , 1997 the fund had over $ 81 million
in assets.
NATURAL RESOURCES
STRATEGY: Invests mainly in equity securities of companies that own or
develop natural resources, or supply goods and services to such companies,
and may also invest directly in precious metals.
PAPER AND FOREST PRODUCTS
STRATEGY: Invests mainly in equity securities of companies engaged in the
manufacture, research, sale, or distribution of paper products, packaging
products, building materials, and other products related to the paper and
forest products industry.
SIZE: As of February 2 8 , 1997 the fund had over $ 19 million
in assets.
PRECIOUS METALS AND MINERALS
STRATEGY: Invests mainly in equity securities of companies engaged in
exploration, mining, processing, or dealing in gold, silver, platinum,
diamonds, or other precious metals and minerals, and may also invest
directly in precious metals.
SIZE: As of February 2 8 , 1997 the fund had over $ 325 million
in assets.
REGIONAL BANKS
STRATEGY: Invests mainly in equity securities of companies engaged in
accepting deposits and making commercial and principally non-mortgage
consumer loans.
SIZE: As of February 2 8 , 1997 the fund had over $ 837 million
in assets.
RETAILING
STRATEGY: Invests mainly in equity securities of companies engaged in
merchandising finished goods and services primarily to individual
consumers.
SIZE: As of February 2 8 , 1997 the fund had over $ 59 million
in assets.
SOFTWARE AND COMPUTER SERVICES
STRATEGY: Invests mainly in equity securities of companies engaged in
research, design, production, or distribution of products or processes that
relate to software or information-based services.
SIZE: As of February 2 8 , 1997 the fund had over $ 389 million
in assets.
TECHNOLOGY
STRATEGY: Invests mainly in equity securities of companies which FMR
believes have, or will develop, products, processes, or services that will
provide or will benefit significantly from technological advances and
improvements.
SIZE: As of February 2 8 , 1997 the fund had over $ 478 million
in assets.
TELECOMMUNICATIONS
STRATEGY: Invests mainly in equity securities of companies engaged in the
development, manufacture, or sale of communications services or
communications equipment.
SIZE: As of February 2 8 , 1997 the fund had over $ 388 million
in assets.
TRANSPORTATION
STRATEGY: Invests mainly in equity securities of companies engaged in
providing transportation services or companies engaged in the design,
manufacture, distribution, or sale of transportation equipment.
SIZE: As of February 2 8 , 1997 the fund had over $ 8 million in
assets.
UTILITIES GROWTH
STRATEGY: Invests mainly in equity securities of companies in the public
utilities industry and companies deriving a majority of their revenues from
their public utility operations.
SIZE: As of February 2 8 , 1997 the fund had over $ 256 million
in assets.
MONEY MARKET
GOAL: Income while maintaining a stable $1.00 share price. As with any
mutual fund, there is no assurance the fund will achieve its goal.
STRATEGY: Invests in high-quality, short-term money market securities of
all types.
SIZE: As of February 2 8 , 1997 the fund had over $848 million in
assets.
WHO MAY WANT TO INVEST
The stock funds may be appropriate for investors who want to pursue growth
aggressively by concentrating their investment on domestic and foreign
securities within an industry or group of industries. The funds are
designed for those who are interested in actively monitoring the
p rogress, and can accept the risks, of industry-focused investing.
Because the funds are so narrowly focused, changes in a particular industry
can have a substantial impact on a fund's share price. Most of the funds
are non-diversified and may invest a greater portion of their assets in
securities of individual issuers than diversified funds. As a result,
changes in the market value of a single issuer could cause greater
fluctuations in share value than would occur in a more diversified fund.
The value of the stock funds' investments will vary from day to day, and
generally reflect market and industry conditions, interest rates, and other
company, political, or economic news both here and abroad. In the short
term, stock prices can fluctuate dramatically in response to these factors.
The securities of small, less well-known companies may be more volatile
than those of larger companies. Over time, however, stocks have shown
greater growth potential than other types of securities. Investments in
foreign securities may involve risks in addition to those of U.S.
investments, including increased political and economic risk, as well as
exposure to currency fluctuations. When you sell your stock fund shares,
they may be worth more or less than what you paid for them.
The money market fund may be appropriate for investors who would like to
earn income at current money market rates while preserving the value of
their investment. The fund is managed to keep its share price stable at
$1.00. The rate of income will vary from day to day, generally reflecting
short-term interest rates. The money market fund is designed for use in
connection with exchanges between the stock funds. Since the money market
fund is sold with a sales charge, it is not recommended that you invest in
the money market fund unless you intend to use it for that purpose.
By themselves, the funds do not constitute a balanced investment plan.
EXPENSES
SHAREHOLDER TRANSACTION EXPENSES are charges you may pay when you buy,
sell, or exchange shares of a fund. In addition, you may be charged an
annual account maintenance fee if your account balance falls below $2,500.
See "Transaction Details," page , for an explanation of how and when
these charges apply. Lower sales charges may be available for accounts
over $250,000.
Maximum sales charge on 3.00
purchases (as a % of offering price) %
Maximum sales charge on None
reinvested distributions
Deferred sales charge on None
redemptions
Maximum redemption fees (stock 0.75
funds only): %
on shares held 29 days or less (as $ 7. 50
a % of redemption amount) *
on shares held 30 days or more
Exchange fee (stock funds only) $7.50
Annual account maintenance fee $12.0
(for accounts under $2,500) 0
* ON REDEMPT ION AMOUNTS OF UP TO
$1,000, YOU WILL BE CHARGED A FEE
OF 0.75% (AS A PERCENTAGE OF YOUR
REDEMPTION AMOUNT).
ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each
fund pays a management fee that varies based on its performance .
It also incurs other expenses for services such as maintaining
shareholder records and furnishing shareholder statements and financial
reports. A fund's expenses are factored into its share price or dividends
and are not charged directly to shareholder accounts (see page ).
The tables beginning on this page show figures that are based on
estimated or historical expenses, adjusted to reflect current fees, and are
calculated as a percentage of average net assets.
EXAMPLES: Let's say, hypothetically, that each fund's annual return is 5%
and that its operating expenses are exactly as just described. For every
$1,000 you invested, the tables belo w show how much you would pay
in tota l expenses if you close your account after the number of
years indicated.
The examples illustrate the effect of expenses, but are not meant to
suggest actual or expected costs or returns, all of which may vary.
Operating expenses Accoun Accoun
t open t
closed
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AIR Management 0.60 After 1 $49 $57
TRANSPORTATION fee % year
12b-1 fee Non After 3 $88 $96
e years
Other 1.29 After 5 $129 $137
expenses % years
Total fund 1.89 After 10 $245 $253
operating % years
expenses
AMERICAN Management 0.60 After 1 $44 $52
GOLD fee % year
12b-1 fee Non After 3 $74 $82
e years
Other 0.84 After 5 $106 $114
expenses % years
Total fund 1.44 After 10 $197 $205
operating % years
expenses
AUTOMOTIVE Management 0.60 After 1 $45 $53
fee % year
12b-1 fee Non After 3 $78 $86
e years
Other 0.96 After 5 $112 $120
expenses % years
Total fund 1.56 After 10 $210 $218
operating % years
expenses
BIOTECHNOLOGY Management 0.60 After 1 $45 $53
fee % year
12b-1 fee Non After 3 $78 $86
e years
Other 0.97 After 5 $113 $121
expenses % years
Total fund 1.57 After 10 $211 $219
operating % years
expenses
BROKERAGE AND Management 0.62 After 1 $49 $57
INVESTMENT fee % year
MANAGEMENT
12b-1 fee Non After 3 $89 $97
e years
Other 1.32 After 5 $132 $140
expenses % years
Total fund 1.94 After 10 $250 $258
operating % years
expenses
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Operating expenses Accoun Accoun
t open t
closed
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CHEMICALS Management 0.60 After 1 $48 $56
fee % year
12b-1 fee Non After 3 $86 $94
e years
Other 1.23 After 5 $126 $134
expenses % years
Total fund 1.83 After 10 $238 $246
operating % years
expenses
COMPUTERS Management 0.61 After 1 $45 $53
fee % year
12b-1 fee Non After 3 $75 $83
e years
Other 0.87 After 5 $108 $116
expenses % years
Total fund 1.48 After 10 $202 $210
operating % years
expenses
CONSTRUCTION Management 0.60 After 1 $44 $52
AND HOUSING fee % year
12b-1 fee Non After 3 $73 $81
e years
Other 0.81 After 5 $105 $113
expenses % years
Total fund 1.41 After 10 $194 $202
operating % years
expenses
CONSUMER Management 0.60 After 1 $54 $62
INDUSTRIES fee % year
12b-1 fee Non After 3 $105 $113
e years
Other 1.89 After 5 $159 $167
expenses % years
Total fund 2.49 After 10 $304 $312
operating % years
expenses
CYCLICAL Management 0.60 After 1 $50 $58
INDUSTRIES* fee % year
12b-1 fee Non After 3 $93 $101
e years
Other 1.46
expenses %
Total fund 2.06
operating %
expenses
DEFENSE AND Management 0.61 After 1 $48 $56
AEROSPACE fee % year
12b-1 fee Non After 3 $86 $94
e years
Other 1.23 After 5 $127 $135
expenses % years
Total fund 1.84 After 10 $239 $247
operating % years
expenses
DEVELOPING Management 0.60 After 1 $46 $54
COMMUNICATIO fee % year
NS
12b-1 fee Non After 3 $80 $88
e years
Other 1.04 After 5 $116 $124
expenses % years
Total fund 1.64 After 10 $219 $227
operating % years
expenses
E LECTRONICS Management 0.61 After 1 $43 $51
fee % year
12b-1 fee Non After 3 $71 $79
e years
Other 0.72 After 5 $101 $109
expenses % years
Total fund 1.33 After 10 $185 $193
operating % years
expenses
</TABLE>
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Operating expenses Accoun Accoun
t open t
closed
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
ENERGY Management 0.60 After 1 $45 $53
fee % year
12b-1 fee Non After 3 $78 $86
e years
Other 0.97 After 5 $113 $121
expenses % years
Total fund 1.57 After 10 $211 $219
operating % years
expenses
ENERGY Management 0.60 After 1 $45 $53
SERVICE fee % year
12b-1 fee Non After 3 $75 $83
e years
Other 0.87 After 5 $108 $116
expenses % years
Total fund 1.47 After 10 $200 $208
operating % years
expenses
ENVIRONMENTAL Management 0.61 After 1 $51 $59
SERVICES fee % year
12b-1 fee Non After 3 $96 $104
e years
Other 1.57 After 5 $143 $151
expenses % years
Total fund 2.18 After 10 $274 $282
operating % years
expenses
FINANCIAL Management 0.61 After 1 $44 $52
SERVICES fee % year
12b-1 fee Non After 3 $74 $82
e years
Other 0.84 After 5 $107 $115
expenses % years
Total fund 1.45 After 10 $198 $206
operating % years
expenses
FOOD AND Management 0.60 After 1 $45 $53
AGRICULTURE fee % year
12b-1 fee Non After 3 $77 $85
e years
Other 0.92 After 5 $110 $118
expenses % years
Total fund 1.52 After 10 $206 $214
operating % years
expenses
HEALTH CARE Management 0.60 After 1 $43 $51
fee % year
12b-1 fee Non After 3 $71 $79
e years
Other 0.73 After 5 $101 $109
expenses % years
Total fund 1.33 After 10 $185 $193
operating % years
expenses
HOME FINANCE Management 0.61 After 1 $44 $52
fee % year
12b-1 fee Non After 3 $72 $80
e years
Other 0.77 After 5 $103 $111
expenses % years
Total fund 1.38 After 10 $191 $199
operating % years
expenses
INDUSTRIAL Management 0.61 After 1 $45 $53
EQUIPMENT fee % year
12b-1 fee Non After 3 $76 $84
e years
Other 0.90 After 5 $110 $118
expenses % years
Total fund 1.51 After 10 $205 $213
operating % years
expenses
INDUSTRIAL Management 0.60 After 1 $45 $53
MATERIALS fee % year
12b-1 fee Non After 3 $77 $85
e years
Other 0.94 After 5 $111 $119
expenses % years
Total fund 1.54 After 10 $208 $216
operating % years
expenses
</TABLE>
Operating expenses Accoun Accoun
t open t
closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
INSURANCE Management 0.61 After 1 $48 $56
fee % year
12b-1 fee Non After 3 $86 $94
e years
Other 1.21 After 5 $126 $134
expenses % years
Total fund 1.82 After 10 $237 $245
operating % years
expenses
LEISURE Management 0.60 After 1 $45 $53
fee % year
12b-1 fee Non After 3 $78 $86
e years
Other 0.96 After 5 $112 $120
expenses % years
Total fund 1.56 After 10 $210 $218
operating % years
expenses
MEDICAL Management 0.60 After 1 $45 $53
DELIVERY fee % year
12b-1 fee Non After 3 $78 $86
e years
Other 0.97 After 5 $113 $121
expenses % years
Total fund 1.57 After 10 $211 $219
operating % years
expenses
MULTIMEDIA Management 0.60 After 1 $46 $54
fee % year
12b-1 fee Non After 3 $79 $87
e years
Other 1.00 After 5 $114 $122
expenses % years
Total fund 1.60 After 10 $214 $222
operating % years
expenses
NATURAL GAS Management 0.60 After 1 $47 $55
fee % year
12b-1 fee Non After 3 $82 $90
e years
Other 1.10 After 5 $120 $128
expenses % years
Total fund 1.70 After 10 $225 $233
operating % years
expenses
NATURAL Management 0.60 After 1 $50 $58
RESOURCES* fee % year
12b-1 fee Non After 3 $93 $101
e years
Other 1.46
expenses %
Total fund 2.06
operating %
expenses
PAPER AND Management 0.60 After 1 $52 $60
FOREST fee % year
PRODUCTS
12b-1 fee Non After 3 $96 $104
e years
Other 1.59 After 5 $144 $152
expenses % years
Total fund 2.19 After 10 $275 $283
operating % years
expenses
PRECIOUS Management 0.60 After 1 $46 $54
METALS AND fee % year
MINERALS
12b-1 fee Non After 3 $80 $88
e years
Other 1.02 After 5 $115 $123
expenses % years
Total fund 1.62 After 10 $216 $224
operating % years
expenses
</TABLE>
* FIGURES ARE BASED ON ESTIMATED EXPENSES.
Operating expenses Accoun Accoun
t open t
closed
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
REGIONAL Management 0.61 After 1 $44 $52
BANKS fee % year
12b-1 fee Non After 3 $75 $83
e years
Other 0.85 After 5 $107 $115
expenses % years
Total fund 1.46 After 10 $199 $207
operating % years
expenses
RETAILING Management 0.60 After 1 $44 $52
fee % year
12b-1 fee Non After 3 $74 $82
e years
Other 0.85 After 5 $107 $115
expenses % years
Total fund 1.45 After 10 $198 $206
operating % years
expenses
SOFTWARE AND Management 0.60 After 1 $45 $53
COMPUTER fee % year
SERVICES
12b-1 fee Non After 3 $77 $85
e years
Other 0.94 After 5 $111 $119
expenses % years
Total fund 1.54 After 10 $208 $216
operating % years
expenses
TECHNOLOGY Management 0.60 After 1 $45 $53
fee % year
12b-1 fee Non After 3 $76 $84
e years
Other 0.89 After 5 $109 $117
expenses % years
Total fund 1.49 After 10 $203 $211
operating % years
expenses
TELECOMMUNIC Management 0.60 After 1 $45 $53
ATIONS fee % year
12b-1 fee Non After 3 $76 $84
e years
Other 0.91 After 5 $110 $118
expenses % years
Total fund 1.51 After 10 $205 $213
operating % years
expenses
TRANSPORTATION Management 0.40 After 1 $55 $63
fee % year
(after
reimbursemen
t)
12b-1 fee Non After 3 $106 $114
e years
Other 2.10 After 5 $159 $167
expenses % years
Total fund 2.50 After 10 $305 $313
operating % years
expenses
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
UTILITIES Management 0.60 After 1 $45 $53
GROWTH fee % year
12b-1 fee Non After 3 $75 $83
e years
Other 0.87 After 5 $108 $116
expenses % years
Total fund 1.47 After 10 $200 $208
operating % years
expenses
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
MONEY MARKET Management 0.20 After 1 $36 $36
fee % year
12b-1 fee Non After 3 $47 $47
e years
Other 0.36 After 5 $60 $60
expenses % years
Total fund 0.56 After 10 $98 $98
operating % years
expenses
</TABLE>
A portion of the brokerage commissions that a fund pays is used to
reduce tha t fund's expenses. In addition, each fund has
entered into arrangements with its custodian and transfer agent whereby
interest earned on uninvested cash balances is used to reduce custodian
and transfer agent expenses . Including these reductions , the
total operating expenses presented in the preceding tables would have
been:
Air Transportation 1.80
%
American Gold 1.42
%
Automotive 1.52
%
Biotechnology 1.56
%
Brokerage and Investment 1.93
Management %
Chemicals 1.81
%
Computers 1.44
%
Construction and Housing 1.35
%
Consumer Industries 2.44
%
Defense and Aerospace 1.81
%
Developing Communications 1.62
%
Electronics 1.29
%
Energy 1.55
%
Energy Service 1.45
%
Environmental Services 2.11
%
Financial Services 1.43
%
Food and Agriculture 1.50
%
Health Care 1.32
%
Home Finance 1.34
%
Industrial Equipment 1.44
%
Industrial Materials 1.51
%
Insurance 1.77
%
Leisure 1.54
%
Medical Delivery 1.53
%
Multimedia 1.56
%
Natural Gas 1.66
%
Paper and Forest Products 2.16
%
Precious Metals and Minerals 1.61
%
Regional Banks 1.45
%
Retailing 1.39
%
Software and Computer Services 1.51
%
Technology 1.44
%
Telecommunications 1.47
%
Transportation 2.48
%
Utilities Growth 1.46
%
FMR has voluntarily agreed to temporarily limit Transportation's
operating expenses to 2.50% of its average net assets. If this agreement
was not in effect the management fee, other expenses and total expenses
would have been 0.60%, 2.10% and 2.70%, respectively . Expenses
eligible for reimbursement do not include interest, taxes, brokerage
commissions or extraordinary expenses.
FINANCIAL HIGHLIGHTS
The financial highlights tables that follow have been audited by Price
Waterhouse LLP, independent accountants. The funds' financial highlights,
financial statements, and report of the auditor are included in the funds'
Annual Report, and are incorporated by reference into (are legally a part
of) the funds' SAI. Contact Fidelity for a free copy of the Annual Report
or the SAI. Cyclical Industries and Natural Resources commen ced
operations on March 3, 1 99 7.
AIR TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 21.11 $ 13.93 $ 17.12 $ 13.60 $ 12.64 $ 11.53 $ 11.05 $ 11.77 $ 8.61 $ 11.87
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.22) (.01) (.18) (.18) (.09)G (.13) (.04) - (.02) (.08)
investm
ent
income
(loss)
Net (3.12) 7.47 (2.01) 3.78 1.33 1.40 .38 (.16) 3.18 (2.12)
realized
and
unrealiz
ed gain
(loss)
Total (3.34) 7.46 (2.19) 3.60 1.24 1.27 .34 (.16) 3.16 (2.20)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- -- -- -- -- -- -- (.02)
net
investm
ent
income
From (.07) (.46) (.92) (.22) (.36) (.25) -- (.57) -- (1.04)
net
realized
gain
In (.20) -- (.17) (.05) -- -- -- -- -- --
excess
of net
realized
gain
Total (.27) (.46) (1.09) (.27) (.36) (.25) -- (.57) -- (1.06)
distributi
ons
Redemp .22 .18 .09 .19 .08 .09 .14 .01 -- --
tion
fees
added
to paid
in
capital
Net $ 17.72 $ 21.11 $ 13.93 $ 17.12 $ 13.60 $ 12.64 $ 11.53 $ 11.05 $ 11.77 $ 8.61
asset
value,
end of
period
Total (15.06) 54.91% (12.45) 27.94% 10.69% 11.90% 4.34% (1.54) 36.70% (17.05)
returnF, % % % %
K
Net $ 35,958 $ 75,359 $ 18,633 $ 11,035 $ 11,868 $ 6,971 $ 4,372 $ 4,688 $ 11,614 $ 2,728
assets,
end of
period
(000
omitted)
Ratio
of 1.89% 1.47% 2.50% 2.33% 2.48% 2.51% 2.48% 2.55% 2.52% 2.62%
expense E A,E E E E E E
s to
average
net
assets
Ratio
of 1.80% 1.41% 2.50% 2.31% 2.48% 2.51% 2.48% 2.55% 2.52% 2.62%
expense B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio
of (1.10) (.07) (1.31) (1.11) (.90)% (1.04) (.34) (.03) (.18) (.75)
net % % % % A % % % % %
investm
ent
income
(loss) to
average
net
assets
Portf
olio 469% 504% 200% 171% 96% 261% 106% 143% 115% 340%
turnover A
rate
Average $ .0409
commis
sion
rateI
</TABLE>
AMERICAN GOLD
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years
1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net
$ 27.11 $ 18.44 $ 22.66 $ 14.15 $ 11.94 $ 13.08 $ 15.22 $ 14.36 $ 15.82 $ 18.59
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net
(.16) (.06) (.05) (.11) (.05) (.06) (.04) (.06) (.09) .01
investm
ent
income
(loss)
Net
1.60 8.62 (4.25) 8.44 2.16 (1.17) (2.23) .85 (1.37) (2.54)
realized
and
unrealiz
ed gain
(loss)
Total
1.44 8.56 (4.30) 8.33 2.11 (1.23) (2.27) .79 (1.46) (2.53)
from
investm
ent
operatio
ns
Less
Distribut
ions
From
- -- -- -- -- -- -- -- -- -- (.06)
net
investm
ent
income
From
(.50) -- -- -- -- -- -- -- -- (.18)
net
realized
gain
Total
(.50) -- -- -- -- -- -- -- -- (.24)
distributi
ons
Redemp
.16 .11 .08 .18 .10 .09 .13 .07 -- --
tion
fees
added
to paid
in
capital
Net
$ 28.21 $ 27.11 $ 18.44 $ 22.66 $ 14.15 $ 11.94 $ 13.08 $ 15.22 $ 14.36 $ 15.82
asset
value,
end of
period
Total
6.10% 47.02% (18.62) 60.14% 18.51% (8.72) (14.06) 5.99% (9.23) (13.65)
returnF, % % % % %
K
Net
$ 428,103 $ 451,493 $ 278,197 $ 347,406 $ 168,033 $ 130,407 $ 164,137 $ 195,322 $ 175,059 $ 206,313
assets,
end of
period
(000
omitted)
Ratio of
1.44% 1.39% 1.41% 1.50% 1.59% 1.75% 1.75% 1.85% 2.03% 2.33%
expense A
s to
average
net
assets
Ratio of
1.42% 1.39% 1.41% 1.49% 1.59% 1.75% 1.75% 1.85% 2.03% 2.33%
expense
B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of
(.59) (.27) (.22) (.51) (.44) (.47) (.29) (.38) (.61) .06%
net
% % % % %A % % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio
63% 56% 34% 39% 30% 40% 38% 68% 56% 89%
turnover A
rate
Average $ .0270
commis
sion
rateI
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.01 PER SHARE.
H FOR THE YEAR ENDED FEBRUARY 29
I 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.
J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
K THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
AUTOMOTIVE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosL
Years 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 21.85 $ 19.84 $ 25.48 $ 20.69 $ 18.65 $ 12.58 $ 12.17 $ 12.86 $ 11.79 $ 12.58
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .13 .03 .08 .05 .13 .06 .25 .23 .15 .11
investm
ent
income
Net 4.28 1.95 (3.46) 6.00 2.26 6.55 .29 (.52) .92 (.40)
realized
and
unrealiz
ed gain
(loss)
Total 4.41 1.98 (3.38) 6.05 2.39 6.61 .54 (.29) 1.07 (.29)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.17) -- (.05) (.05) (.06) -- (.18) (.41) -- (.04)
net
investm
ent
income
From (.75) -- (2.26) (1.26) (.36) (.70) -- -- -- (.46)
net
realized
gain
Total (.92) -- (2.31) (1.31) (.42) (.70) (.18) (.41) -- (.50)
distributi
ons
Redemp .04 .03 .05 .05 .07 .16 .05 .01 -- --
tion
fees
added
to paid
in
capital
Net $ 25.38 $ 21.85 $ 19.84 $ 25.48 $ 20.69 $ 18.65 $ 12.58 $ 12.17 $ 12.86 $ 11.79
asset
value,
end of
period
Total 20.60% 10.13% (12.59) 30.45% 13.42% 56.27% 4.81% (2.07) 9.08% (1.07)
returnF, % % %
G
Net $ 86,347 $ 55,753 $ 60,075 $ 228,698 $ 110,360 $ 178,445 $ 974 $ 1,213 $ 1,428 $ 8,218
assets,
end of
period
(000
omitted)
Ratio
of 1.56% 1.81% 1.82% 1.69% 1.57% 2.48% 2.25% 2.42% 2.63% 2.49%
expense A E E E E
s to
average
net
assets
Ratio
of 1.52% 1.80% 1.80% 1.68% 1.57% 2.48% 2.25% 2.42% 2.63% 2.49%
expense B B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio
of .54% .13% .34% .22% .72% .36% 2.06% 1.84% 1.22% .91%
net A
investm
ent
income
to
average
net
assets
Port
folio 175% 61% 63% 64% 140% 29% 219% 121% 149% 311%
turnover A
rate
Average $ .0495
commis
sion
rateK
</TABLE>
BIOTECHNOLOGY
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosL
Years
1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net
$ 36.60 $ 25.30 $ 27.61 $ 22.60 $ 27.61 $ 26.78 $ 15.28 $ 11.90 $ 10.31 $ 13.90
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net
(.20) .11 (.06) (.18) (.08) (.11) .05I (.04)H (.04) (.15)
investm
ent
income
(loss)
Net
1.89 11.21 (2.26) 5.15 (1.09) 3.36 11.80 3.60 1.63 (3.16)
realized
and
unrealiz
ed gain
(loss)
Total
1.69 11.32 (2.32) 4.97 (1.17) 3.25 11.85 3.56 1.59 (3.31)
from
investm
ent
operatio
ns
Less
Distribut
ions
From
(.03) (.07) -- -- -- -- -- -- -- --
net
investm
ent
income
In
- -- -- -- -- -- (.02) -- -- -- --
excess
of net
investm
ent
income
From
(4.06) -- -- -- (3.89) (2.52) (.67) (.24) -- (.28)
net
realized
gain
Total
(4.09) (.07) -- -- (3.89) (2.54) (.67) (.24) -- (.28)
distributi
ons
Redemp
.04 .05 .01 .04 .05 .12 .32 .06 -- --
tion
fees
added
to paid
in
capital
Net
$ 34.24 $ 36.60 $ 25.30 $ 27.61 $ 22.60 $ 27.61 $ 26.78 $ 15.28 $ 11.90 $ 10.31
asset
value,
end of
period
Total
5.85% 44.97% (8.37) 22.17% (5.92) 12.36% 81.43% 30.53% 15.42% (23.52)
returnF, % % %
G
Net
$ 674,902 $ 1,096,86 $ 448,197 $ 481,146 $ 507,993 $ 679,877 $ 482,271 $ 70,994 $ 46,946 $ 47,557
assets, 4
end of
period
(000
omitted)
Ratio of
1.57% 1.44% 1.59% 1.62% 1.50% 1.50% 1.63% 2.07% 2.21% 2.51%
expense E A E
s to
average
net
assets
Ratio of
1.56% 1.43% 1.59% 1.61% 1.50% 1.50% 1.63% 2.07% 2.21% 2.51%
expense
B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of
(.59) .35% (.27) (.69) (.37) (.34) .24% (.31) (.43) (1.31)
net
% % % %A % % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio
41% 67% 77% 51% 79% 160% 166% 290% 80% 205%
turnover A
rate
Average $ .0376
commis
sion
rateK
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.05 PER SHARE.
I INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.02 PER SHARE.
J FOR THE YEAR ENDED FEBRUARY 29
K 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.
L NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
BROKERAGE AND INVESTMENT MANAGEMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996J 1995 1994 1993J 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 18.49 $ 15.51 $ 17.75 $ 14.22 $ 11.48 $ 9.28 $ 7.97 $ 8.39 $ 7.14 $ 13.06
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .08 .09 (.03) (.02) -- .02 .08 .08 .09 .01
investm
ent
income
(loss)
Net 7.80 4.29 (2.25) 4.95 2.65 1.96 1.15 (.35) 1.25 (4.75)
realized
and
unrealiz
ed gain
(loss)
Total 7.88 4.38 (2.28) 4.93 2.65 1.98 1.23 (.27) 1.34 (4.74)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.06) (.04) -- (.01) -- (.01) (.09) (.16) (.09) (.03)
net
investm
ent
income
From (.65) (1.09) -- (1.47) -- -- -- -- -- (1.15)
net
realized
gain
In -- (.35) -- -- -- -- -- -- -- --
excess
of net
realized
gain
Total (.71) (1.48) -- (1.48) -- (.01) (.09) (.16) (.09) (1.18)
distributi
ons
Redemp .10 .08 .04 .08 .09 .23 .17 .01 -- --
tion
fees
added
to paid
in
capital
Net $ 25.76 $ 18.49 $ 15.51 $ 17.75 $ 14.22 $ 11.48 $ 9.28 $ 7.97 $ 8.39 $ 7.14
asset
value,
end of
period
Total 44.27% 29.85% (12.62) 35.87% 23.87% 23.84% 17.90% (3.23) 18.93% (34.82)
returnF, % % %
G
Net $ 458,787 $ 38,382 $ 27,346 $ 59,810 $ 24,687 $ 17,915 $ 11,285 $ 2,298 $ 4,340 $ 4,254
assets,
end of
period
(000
omitted)
Ratio of 1.94% 1.64% 2.54% 1.79% 2.21% 2.17% 2.50% 2.50% 2.54% 2.58%
expense E E E E E E E
s to
average
net
assets
Ratio of 1.93% 1.61% 2.54% 1.77% 2.21% 2.17% 2.50% 2.50% 2.54% 2.58%
expense B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .37% .50% (.20) (.14) .02% .16% .94% .91% 1.18% .09%
net % % A
investm
ent
income
(loss) to
average
net
assets
Portfolio 16% 166% 139% 295% 111% 254% 62% 142% 185% 447%
turnover A
rate
Average $ .0392
commis
sion
rateH
</TABLE>
CHEMICALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 39.53 $ 33.91 $ 31.66 $ 28.62 $ 32.81 $ 26.25 $ 22.70 $ 23.77 $ 20.67 $ 20.43
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .28 .01 .36 .29 .30 .12 .28 .41 .28 .33
investm
ent
income
Net 5.49 8.89 2.65 5.97 (.84) 7.27 3.94 (.21) 2.82 (.05)
realized
and
unrealiz
ed gain
(loss)
Total 5.77 8.90 3.01 6.26 (.54) 7.39 4.22 .20 3.10 .28
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.12) (.08) (.22) (.23) (.31) (.18) (.10) (.16) -- --
net
investm
ent
income
From (2.74) (3.22) (.60) (3.05) (3.36) (.71) (.60) (1.13) -- (.04)
net
realized
gain
Total (2.86) (3.30) (.82) (3.28) (3.67) (.89) (.70) (1.29) -- (.04)
distributi
ons
Redemp .09 .02 .06 .06 .02 .06 .03 .02 -- --
tion
fees
added
to paid
in
capital
Net $ 42.53 $ 39.53 $ 33.91 $ 31.66 $ 28.62 $ 32.81 $ 26.25 $ 22.70 $ 23.77 $ 20.67
asset
value,
end of
period
Total 15.06% 27.48% 9.90% 23.63% (1.61) 29.07% 18.99% .71% 15.00% 1.41%
returnF, %
G
Net $ 111,409 $ 89,230 $ 97,511 $ 62,217 $ 28,796 $ 39,566 $ 20,396 $ 21,150 $ 44,914 $ 118,942
assets,
end of
period
(000
omitted)
Ratio of 1.83% 1.99% 1.52% 1.93% 1.89% 2.16% 2.50% 2.37% 2.24% 1.93%
expense A E
s to
average
net
assets
Ratio of 1.81% 1.97% 1.51% 1.93% 1.89% 2.16% 2.50% 2.37% 2.24% 1.93%
expense B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .67% .04% 1.07% .97% 1.21% .40% 1.21% 1.65% 1.27% 1.61%
net A
investm
ent
income
to
average
net
assets
Portfolio 207% 87% 106% 81% 214% 87% 87% 99% 117% 179%
turnover A
rate
Average $ .0458
commis
sion
rateH
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H 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.
I NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
J FOR THE YEAR ENDED FEBRUARY 29
COMPUTERS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosM
Years 1997 1996K 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 41.03 $ 30.67 $ 27.02 $ 20.15 $ 17.63 $ 16.60 $ 12.68 $ 11.60 $ 11.86 $ 16.60
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.36) (.23) (.31) (.21)J (.15) (.03)I .42H (.11) (.13) (.11)
investm
ent
income
(loss)
Net 9.94 16.10 3.68 8.66 2.44 1.18 3.21 .98 (.13) (4.29)
realized
and
unrealiz
ed gain
(loss)
Total 9.58 15.87 3.37 8.45 2.29 1.15 3.63 .87 (.26) (4.40)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- -- -- -- (.12) -- -- (.01)
net
investm
ent
income
In -- -- -- -- -- (.27) -- -- -- --
excess
of net
investm
ent
income
From (2.47) (5.61) -- (1.80) -- (.22) -- -- -- (.33)
net
realized
gain
Total (2.47) (5.61) -- (1.80) -- (.49) (.12) -- -- (.34)
distributi
ons
Redemp .11 .10 .28 .22 .23 .37 .41 .21 -- --
tion
fees
added
to paid
in
capital
Net $ 48.25 $ 41.03 $ 30.67 $ 27.02 $ 20.15 $ 17.63 $ 16.60 $ 12.68 $ 11.60 $ 11.86
asset
value,
end of
period
Total 23.97% 52.79% 13.51% 45.06% 14.29% 9.36% 32.11% 9.31% (2.19) (26.33)
returnF, % %
G
Net $ 604,286 $ 527,337 $ 215,014 $ 120,435 $ 47,596 $ 32,810 $ 29,455 $ 27,561 $ 15,730 $ 23,110
assets,
end of
period
(000
omitted)
Ratio
of 1.48% 1.40% 1.71% 1.90% 1.81% 2.17% 2.26% 2.64% 2.56% 2.62%
expense A E E E
s to
average
net
assets
Ratio
of 1.44% 1.38% 1.69% 1.89% 1.81% 2.17% 2.26% 2.64% 2.56% 2.62%
expense B B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio
of (.83) (.56) (1.12) (.91) (.98) (.18) 2.94% (.94) (1.18) (.75)
net % % % % %A % % % %
investm
ent
income
(loss) to
average
net
assets
Port
folio 255% 129% 189% 145% 254% 568% 695% 596% 466% 284%
turnover A
rate
Average $ .0432
commis
sion
rateL
</TABLE>
CONSTRUCTION AND HOUSING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosM
Years 1997 1996K 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 19.56 $ 16.79 $ 19.82 $ 15.74 $ 13.84 $ 11.76 $ 11.66 $ 13.01 $ 11.25 $ 13.74
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .06 .07 (.02) .01 .02 (.06) .01 -- .14 (.05)
investm
ent
income
(loss)
Net 3.38 3.55 (2.50) 4.26 1.87 2.93 1.45 .34 1.95 (2.31)
realized
and
unrealiz
ed gain
(loss)
Total 3.44 3.62 (2.52) 4.27 1.89 2.87 1.46 .34 2.09 (2.36)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.02) (.07) -- -- -- -- (.16) (.08) (.06) --
net
investm
ent
income
From (1.03) (.81) (.52) (.22) (.01) (.88) (1.27) (1.62) (.27) (.13)
net
realized
gain
Total (1.05) (.88) (.52) (.22) (.01) (.88) (1.43) (1.70) (.33) (.13)
distributi
ons
Redemp .05 .03 .01 .03 .02 .09 .07 .01 -- --
tion
fees
added
to paid
in
capital
Net $ 22.00 $ 19.56 $ 16.79 $ 19.82 $ 15.74 $ 13.84 $ 11.76 $ 11.66 $ 13.01 $ 11.25
asset
value,
end of
period
Total 18.64% 21.77% (12.54) 27.45% 13.81% 26.96% 13.46% 2.39% 19.01% (16.85)
returnF, % %
G
Net $ 30,581 $ 42,668 $ 16,863 $ 80,999 $ 31,111 $ 26,687 $ 4,070 $ 1,217 $ 1,335 $ 3,112
assets,
end of
period
(000
omitted)
Ratio of 1.41% 1.43% 1.76% 1.67% 2.02% 2.50% 2.48% 2.41% 2.56% 2.70%
expense A E E E E
s to
average
net
assets
Ratio of 1.35% 1.40% 1.74% 1.66% 2.02% 2.50% 2.48% 2.41% 2.56% 2.70%
expense B B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .27% .39% (.11) .03% .20% (.49) .08% (.03) 1.16% (.41)
net % A % % %
investm
ent
income
(loss) to
average
net
assets
Port
folio 270% 139% 45% 35% 60% 183% 137% 185% 225% 330%
turnover A
rate
Average $ .0410
commis
sion
rateL
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO
$.08 AND $.36 PER SHARE RELATING TO A NONRECURRING INITIATIVE TO INVEST IN
DIVIDEND INCOME PRODUCING SECURITIES WHICH WAS IN EFFECT FOR A PORTION OF
1991.
I INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.22 PER SHARE RELATING TO A NONRECURRING INITIATIVE TO INVEST
IN DIVIDEND INCOME PRODUCING SECURITIES WHICH WAS IN EFFECT FOR A PORTION
OF 1992.
J INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.07 PER SHARE.
K FOR THE YEAR ENDED FEBRUARY 29
L 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.
M NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
CONSUMER INDUSTRIES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosL
Years 1997 1996J 1995 1994 1993C 1992D 1991B
ended
Februar
y 28
Net $ 17.84 $ 13.91 $ 15.24 $ 12.97 $ 13.81 $ 11.22 $ 10.00
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.22) .08 (.15) (.20) (.09) (.07) .05H
investm
ent
income
(loss)
Net 2.93 3.97 (.60) 3.84 .20 2.86 1.18
realized
and
unrealiz
ed gain
(loss)
Total 2.71 4.05 (.75) 3.64 .11 2.79 1.23
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- (.02) -- -- -- -- (.06)
net
investm
ent
income
From -- (.01) (.60) (1.40) (.97) (.22) --
net
realized
gain
In -- (.20) -- -- -- -- --
excess
of net
realized
gain
Total -- (.23) (.60) (1.40) (.97) (.22) (.06)
distributi
ons
Redemp .11 .11 .02 .03 .02 .02 .05
tion
fees
added
to paid
in
capital
Net $ 20.66 $ 17.84 $ 13.91 $ 15.24 $ 12.97 $ 13.81 $ 11.22
asset
value,
end of
period
Total 15.81% 30.01% (4.59) 28.43% .98% 25.27% 12.89%
returnF, %
G
Net $ 18,392 $ 22,362 $ 20,501 $ 8,374 $ 7,005 $ 7,553 $ 1,877
assets,
end of
period
(000
omitted)
Ratio of 2.49% 1.53% 2.49% 2.48% 2.47% 2.48% 2.43%
expense E E E A,E E A,E
s to
average
net
assets
Ratio of 2.44%I 1.48%I 2.49% 2.48% 2.47% 2.48% 2.43%
expense A A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (1.13) .46% (1.08) (1.34) (.80)% (.56) .62%
net % % % A % A
investm
ent
income
(loss) to
average
net
assets
Portfolio 340% 601% 190% 169% 215% 140% 108%
turnover A A
rate
Average $ .0355
commis
sion
rateK
</TABLE>
DEFENSE AND AEROSPACE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosL
Years 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 26.97 $ 19.64 $ 19.14 $ 15.08 $ 14.37 $ 13.72 $ 11.90 $ 12.42 $ 12.16 $ 16.05
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.11) (.05) (.06) .07 (.02) (.01) .10 .04 (.05) (.12)
investm
ent
income
(loss)
Net 4.18 9.09 .70 4.57 .69 .67 1.72 (.56) .31 (3.31)
realized
and
unrealiz
ed gain
(loss)
Total 4.07 9.04 .64 4.64 .67 .66 1.82 (.52) .26 (3.43)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- (.10) -- (.04) (.12) -- -- --
net
investm
ent
income
In -- -- -- -- -- (.02) -- -- -- --
excess
of net
investm
ent
income
From (2.17) (1.82) (.27) (.62) -- -- -- -- -- (.46)
net
realized
gain
Total (2.17) (1.82) (.27) (.72) -- (.06) (.12) -- -- (.46)
distributi
ons
Redemp .07 .11 .13 .14 .04 .05 .12 -- -- --
tion
fees
added
to paid
in
capital
Net $ 28.94 $ 26.97 $ 19.64 $ 19.14 $ 15.08 $ 14.37 $ 13.72 $ 11.90 $ 12.42 $ 12.16
asset
value,
end of
period
Total 15.87% 47.40% 4.13% 32.04% 4.94% 5.18% 16.42% (4.19) 2.14% (20.90)
returnF, % %
G
Net $ 68,803 $ 26,648 $ 4,985 $ 11,136 $ 1,463 $ 1,280 $ 3,070 $ 1,599 $ 1,759 $ 2,439
assets,
end of
period
(000
omitted)
Ratio of 1.84% 1.77% 2.49% 2.53% 2.48% 2.46% 2.49% 2.43% 2.53% 2.33%
expense E E E A,E E E E E E
s to
average
net
assets
Ratio of 1.81%I 1.75%I 2.49% 2.53% 2.48% 2.46% 2.49% 2.43% 2.53% 2.33%
expense A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.39) (.20) (.32) .40% (.14)% (.10) .78% .34% (.39) (.91)
net % % % A % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 219% 267% 146% 324% 87% 32% 162% 96% 62% 162%
turnover A
rate
Average $ .0335
commis
sion
rateK
</TABLE>
A ANNUALIZED
B FROM JUNE 29,1990 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1991.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.02 PER SHARE.
I FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
J FOR THE YEAR ENDED FEBRUARY 29
K 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.
L NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
DEVELOPING COMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996C 1995 1994 1993D 1992E 1991B
ended
Februar
y 28
Net $ 19.42 $ 20.40 $ 19.65 $ 16.44 $ 13.54 $ 11.95 $ 10.00
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.18) (.17) (.16) (.16) (.07) (.08)J (.10)
investm
ent
income
(loss)
Net .42 4.17 2.55 4.82 2.98 2.42 1.86
realized
and
unrealiz
ed gain
(loss)
Total .24 4.00 2.39 4.66 2.91 2.34 1.76
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- (5.00) (1.67) (1.47) (.03) (.79) --
net
realized
gain
Redemp .02 .02 .03 .02 .02 .04 .19
tion
fees
added
to paid
in
capital
Net $ 19.68 $ 19.42 $ 20.40 $ 19.65 $ 16.44 $ 13.54 $ 11.95
asset
value,
end of
period
Total 1.34% 21.84% 13.63% 30.24% 21.66% 21.41% 19.50%
returnG,
H
Net $ 220,360 $ 333,185 $ 254,426 $ 222,109 $ 83,383 $ 39,261 $ 7,745
assets,
end of
period
(000
omitted)
Ratio of 1.64% 1.53% 1.58% 1.56% 1.88% 2.50% 2.50%
expense A A,K
s to
average
net
assets
Ratio of 1.62% 1.51% 1.56% 1.56% 1.88% 2.50% 2.50%
expense F F F A A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.86) (.78) (.83) (.88) (.59) (.61) (1.23)%
net % % % % %A % A
investm
ent
income
(loss) to
average
net
assets
Portfolio 202% 249% 266% 280% 77% 25% 469%
turnover A A
rate
Average $ .0346
commis
sion
rateL
</TABLE>
ELECTRONICS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996C 1995 1994 1993D 1992E 1991E 1990E 1989E 1988E
ended
Februar
y 28
Net $ 28.18 $ 19.80 $ 17.67 $ 14.28 $ 11.81 $ 10.75 $ 9.11 $ 7.32 $ 7.86 $ 10.79
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.17) (.08) (.18) (.09) (.05) (.12) (.04) -- (.11) (.09)
investm
ent
income
(loss)
Net 9.80 13.51 2.11 6.09 2.33 1.00 1.53 1.62 (.43) (2.84)
realized
and
unrealiz
ed gain
(loss)
Total 9.63 13.43 1.93 6.00 2.28 .88 1.49 1.62 (.54) (2.93)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- -- -- -- (.01) -- -- --
net
investm
ent
income
From -- (5.25) -- (2.75) -- -- -- -- -- --
net
realized
gain
Total -- (5.25) -- (2.75) -- -- (.01) -- -- --
distributi
ons
Redemp .14 .20 .20 .14 .19 .18 .16 .17 -- --
tion
fees
added
to paid
in
capital
Net $ 37.95 $ 28.18 $ 19.80 $ 17.67 $ 14.28 $ 11.81 $ 10.75 $ 9.11 $ 7.32 $ 7.86
asset
value,
end of
period
Total 34.67% 72.75% 12.05% 46.24% 20.91% 9.86% 18.15% 24.45% (6.87) (27.15)
returnG, % %
H
Net $ 1,744,01 $ 1,133,36 $ 216,433 $ 110,993 $ 48,027 $ 34,222 $ 18,178 $ 26,141 $ 8,667 $ 12,963
assets,7 2
end of
period
(000
omitted)
Ratio
of 1.33% 1.25% 1.72% 1.67% 1.69% 2.16% 2.26% 2.57% 2.79% 2.54%
expense A K K K
s to
average
net
assets
Ratio
of 1.29% 1.22% 1.71% 1.67% 1.69% 2.16% 2.26% 2.57% 2.79% 2.54%
expense F F F A
s to
average
net
assets
after
expense
reductio
ns
Ratio
of (.54) (.28) (.98) (.52) (.50) (1.07) (.45) (.02) (1.51) (1.02)
net % % % % %A % % % % %
investm
ent
income
(loss) to
average
net
assets
Port
folio 341% 366% 205% 163% 293% 299% 268% 378% 697% 686%
turnover A
rate
Average $ .0421
commis
sion
rateL
</TABLE>
A ANNUALIZED
B FROM JUNE 29, 1990 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1991
C FOR THE YEAR ENDED FEBRUARY 29
D FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
E FOR THE YEAR ENDED APRIL 30
F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
G TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
H THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
I NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
J INVESTMENT INCOME (LOSS) INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.06 PER SHARE.
K DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
L 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.
ENERGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 18.97 $ 16.10 $ 16.73 $ 15.84 $ 14.70 $ 15.43 $ 16.64 $ 14.40 $ 13.15 $ 13.68
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .13 .18 .07 .06 .23 .17 .16 .27 .32 .24
investm
ent
income
Net 3.59 3.13 (.11) 1.35 1.16 (.75) .15 2.23 1.25 (.47)
realized
and
unrealiz
ed gain
(loss)
Total 3.72 3.31 (.04) 1.41 1.39 (.58) .31 2.50 1.57 (.23)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.13) (.11) (.08) (.03) (.27) (.16) (.15) (.07) (.32) (.03)
net
investm
ent
income
From (1.31) (.36) (.54) (.57) -- (.02) (1.43) (.22) -- (.27)
net
realized
gain
Total (1.44) (.47) (.62) (.60) (.27) (.18) (1.58) (.29) (.32) (.30)
distributi
ons
Redemp .06 .03 .03 .08 .02 .03 .06 .03 -- --
tion
fees
added
to paid
in
capital
Net $ 21.31 $ 18.97 $ 16.10 $ 16.73 $ 15.84 $ 14.70 $ 15.43 $ 16.64 $ 14.40 $ 13.15
asset
value,
end of
period
Total 20.35% 20.92% .04% 9.69% 9.81% (3.55) 2.26% 17.52% 12.37% (1.15)
returnF, % %
G
Net $ 203,265 $ 119,676 $ 96,023 $ 145,490 $ 179,133 $ 77,334 $ 92,611 $ 83,912 $ 80,225 $ 109,429
assets,
end of
period
(000
omitted)
Ratio of 1.57% 1.63% 1.85% 1.67% 1.71% 1.78% 1.79% 1.94% 1.77% 2.09%
expense A
s to
average
net
assets
Ratio of 1.55% 1.63% 1.85% 1.66% 1.71% 1.78% 1.79% 1.94% 1.77% 2.09%
expense B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .62% 1.04% .42% .37% 1.88% 1.16% .99% 1.69% 2.48% 1.72%
net A
investm
ent
income
to
average
net
assets
Portfolio 87% 97% 106% 157% 72% 81% 61% 74% 168% 183%
turnover A
rate
Average $ .0399
commis
sion
rateK
</TABLE>
ENERGY SERVICE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 16.09 $ 11.97 $ 11.66 $ 11.01 $ 9.43 $ 12.51 $ 12.19 $ 8.99 $ 9.22 $ 10.86
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.01) .08I .02 .03 .01 (.12) -- (.05) (.04) (.12)
investm
ent
income
(loss)
Net 5.05 4.49 .67 .51 1.47 (3.11) .15 3.17 (.19) (1.52)
realized
and
unrealiz
ed gain
(loss)
Total 5.04 4.57 .69 .54 1.48 (3.23) .15 3.12 (.23) (1.64)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- (.04) (.01) (.05) -- -- (.02) -- -- --
net
investm
ent
income
In -- -- (.01) -- -- -- -- -- -- --
excess
of net
investm
ent
income
From (.79)L (.48) (.35) -- -- -- -- -- -- --
net
realized
gain
In -- -- (.13) -- -- -- -- -- -- --
excess
of net
realized
gain
Total (.79) (.52) (.50) (.05) -- -- (.02) -- -- --
distributi
ons
Redemp .12 .07 .12 .16 .10 .15 .19 .08 -- --
tion
fees
added
to paid
in
capital
Net $ 20.46 $ 16.09 $ 11.97 $ 11.66 $ 11.01 $ 9.43 $ 12.51 $ 12.19 $ 8.99 $ 9.22
asset
value,
end of
period
Total 32.26% 39.15% 7.60% 6.36% 16.76% (24.62) 2.80% 35.60% (2.49) (15.10)
returnF, % % %
G
Net $ 439,504 $ 273,805 $ 63,794 $ 40,857 $ 85,234 $ 41,322 $ 73,398 $ 61,821 $ 44,003 $ 33,089
assets,
end of
period
(000
omitted)
Ratio of 1.47% 1.59% 1.81% 1.66% 1.76% 2.07% 1.82% 2.29% 2.53% 2.71%
expense A E E
s to
average
net
assets
Ratio of 1.45% 1.58% 1.79% 1.65% 1.76% 2.07% 1.82% 2.29% 2.53% 2.71%
expense B B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.07) .60% .19% .23% .13% (1.13) (.02) (.42) (.45) (1.06)
net % A % % % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 167% 223% 209% 137% 236% 89% 62% 128% 78% 461%
turnover A
rate
Average $ .0374
commis
sion
rateK
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WTIH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H FOR THE YEAR ENDED FEBRUARY 29
I INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.02 PER SHARE.
J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
K 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.
L THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES.
ENVIRONMENTAL SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996H 1995 1994 1993C 1992D 1991D 1990B
ended
Februar
y 28
Net $ 12.42 $ 10.27 $ 11.93 $ 11.36 $ 11.39 $ 12.95 $ 11.41 $ 10.00
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.08) (.17) (.14) (.11) (.06) (.09) (.04) .02
investm
ent
income
(loss)
Net 2.04K 2.95 (1.53) .67 .42 (1.06) 1.55 1.38
realized
and
unrealiz
ed gain
(loss)
Total 1.96 2.78 (1.67) .56 .36 (1.15) 1.51 1.40
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- -- -- -- -- (.01)
net
investm
ent
income
From -- (.65) -- -- (.39) (.42) -- --
net
realized
gain
In (.02) -- -- -- -- -- -- --
excess
of net
realized
gain
Total (.02) (.65) -- -- (.39) (.42) -- (.01)
distributi
ons
Redemp .14 .02 .01 .01 -- .01 .03 .02
tion
fees
added
to paid
in
capital
Net $ 14.50 $ 12.42 $ 10.27 $ 11.93 $ 11.36 $ 11.39 $ 12.95 $ 11.41
asset
value,
end of
period
Total 16.93% 27.49% (13.91) 5.02% 3.34% (8.67) 13.50% 14.20%
returnF, % %
G
Net $ 32,525 $ 27,587 $ 31,270 $ 65,956 $ 65,913 $ 65,132 $ 100,263 $ 101,736
assets,
end of
period
(000
omitted)
Ratio of 2.18% 2.36% 2.04% 2.07% 1.99% 2.03% 2.03% 2.25%
expense A A
s to
average
net
assets
Ratio of 2.11% 2.32% 2.01% 2.03% 1.99% 2.03% 2.03% 2.25%
expense E E E E A A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.59) (1.43) (1.32) (1.02) (.70) (.74) (.30) .16%
net % % % % %A % % j116 A
investm
ent
income
(loss) to
average
net
assets
Portfolio 252% 138% 82% 191% 176% 130% 122% 72%
turnover A A
rate
Average $ .0348
commis
sion
rateJ
</TABLE>
FINANCIAL SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996H 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 65.70 $ 48.23 $ 51.24 $ 53.29 $ 42.42 $ 30.55 $ 28.28 $ 30.64 $ 26.36 $ 32.47
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .74 1.03 .76 .29 .33 .54 .58 .66 1.00 .48
investm
ent
income
Net 21.55 17.56 .87 5.02 14.30 11.35 1.67 (2.53) 4.09 (4.93)
realized
and
unrealiz
ed gain
(loss)
Total 22.29 18.59 1.63 5.31 14.63 11.89 2.25 (1.87) 5.09 (4.45)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.63) (.37) (.79) (.20) (.51) (.35) (.52) (.33) (.81) (.12)
net
investm
ent
income
From (4.56) (.91) (3.93) (7.32) (3.38) -- -- (.19) -- (1.54)
net
realized
gain
Total (5.19) (1.28) (4.72) (7.52) (3.89) (.35) (.52) (.52) (.81) (1.66)
distributi
ons
Redemp .14 .16 .08 .16 .13 .33 .54 .03 -- --
tion
fees
added
to paid
in
capital
Net $ 82.94 $ 65.70 $ 48.23 $ 51.24 $ 53.29 $ 42.42 $ 30.55 $ 28.28 $ 30.64 $ 26.36
asset
value,
end of
period
Total 35.54% 39.05% 4.72% 10.85% 36.46% 40.31% 10.51% (6.20) 19.68% (12.97)
returnF, % %
G
Net $ 426,424 $ 270,466 $ 153,089 $ 116,195 $ 214,612 $ 91,700 $ 35,962 $ 21,087 $ 32,647 $ 28,371
assets,
end of
period
(000
omitted)
Ratio of 1.45% 1.42% 1.56% 1.64% 1.54% 1.85% 2.49% 2.22% 1.07% 2.47%
expense A
s to
average
net
assets
Ratio of 1.43% 1.41% 1.54% 1.63% 1.54% 1.85% 2.49% 2.22% 1.07% 2.47%
expense E E E E A
s to
average
net
assets
after
expense
reductio
ns
Ratio of 1.03% 1.78% 1.52% .53% .86% 1.49% 2.22% 2.03% 3.53% 1.58%
net A
investm
ent
income
to
average
net
assets
Portf
olio 80% 125% 107% 93% 100% 164% 237% 308% 186% 81%
turnover A
rate
Average commission rateJ $ .0433
</TABLE>
A ANNUALIZED
B FROM JUNE 29, 1989 (COMMENCEMENT OF OPERATIONS) TO APRIL 30, 1990
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
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.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H FOR THE YEAR ENDED FEBRUARY 29
I NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
J 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.
K THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING OF SALES
AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUES OF
THE INVESTMENTS OF THE FUND.
FOOD AND AGRICULTURE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosH
Years 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 42.15 $ 32.53 $ 31.49 $ 30.86 $ 29.22 $ 27.87 $ 22.84 $ 20.76 $ 16.05 $ 17.51
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .42 .37 .15 .09 .05 .13 .21 .19 .09 (.01)
investm
ent
income
(loss)
Net 4.91 11.61 2.80 3.29 3.26 2.89 5.78 4.07 4.67 (.87)
realized
and
unrealiz
ed gain
(loss)
Total 5.33 11.98 2.95 3.38 3.31 3.02 5.99 4.26 4.76 (.88)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.24) (.20) (.08) (.06) (.10) (.11) (.27) (.04) (.05) (.03)
net
investm
ent
income
From (2.77) (2.20) (1.85) (2.70) (1.57) (1.59) (.79) (2.17) -- (.55)
net
realized
gain
Total (3.01) (2.40) (1.93) (2.76) (1.67) (1.70) (1.06) (2.21) (.05) (.58)
distributi
ons
Redemp .06 .04 .02 .01 -- .03 .10 .03 -- --
tion
fees
added
to paid
in
capital
Net $ 44.53 $ 42.15 $ 32.53 $ 31.49 $ 30.86 $ 29.22 $ 27.87 $ 22.84 $ 20.76 $ 16.05
asset
value,
end of
period
Total 13.59% 37.92% 10.14% 11.69% 11.72% 11.11% 27.39% 20.83% 29.70% (4.63)
returnF, %
G
Net $ 223,423 $ 301,102 $ 197,130 $ 95,010 $ 108,377 $ 108,922 $ 64,490 $ 25,965 $ 15,536 $ 9,298
assets,
end of
period
(000
omitted)
Ratio of 1.52% 1.43% 1.70% 1.65% 1.67% 1.83% 2.22% 2.53% 2.50% 2.45%
expense A E E E
s to
average
net
assets
Ratio of 1.50% 1.42% 1.68% 1.64% 1.67% 1.83% 2.22% 2.53% 2.50% 2.45%
expense B B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of 1.01% .99% .49% .29% .21% .46% .85% .82% .48% (.04)
net A %
investm
ent
income
(loss) to
average
net ass
ets
Portf
olio 91% 124% 126% 96% 515% 63% 124% 267% 248% 215%
turnover A
rate
Average $ .0326
commis
sion
rateK
</TABLE>
HEALTH CARE
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosH
Years
1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net
$ 100.47 $ 76.13 $ 63.31 $ 52.57 $ 70.42 $ 69.99 $ 46.15 $ 39.79 $ 33.59 $ 41.98
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net
.52 .95 .75 .15 .13 (.02) .73I .72 .33 .02
investm
ent
income
(loss)
Net
18.01 28.85 18.38 10.61 (9.34) 9.47 28.70 6.56 6.15 (7.49)
realized
and
unrealiz
ed gain
(loss)
Total
18.53 29.80 19.13 10.76 (9.21) 9.45 29.43 7.28 6.48 (7.47)
from
investm
ent
operatio
ns
Less
Distribut
ions
From
(.65) (.59) (.62) (.07) (.16) (.34) (.20) (.13) (.28) --
net
investm
ent
income
From
(15.95) (4.92) (5.74) -- (8.51) (8.81) (5.67) (.84) -- (.92)
net
realized
gain
Total
(16.60) (5.51) (6.36) (.07) (8.67) (9.15) (5.87) (.97) (.28) (.92)
distributi
ons
Redemp
.05 .05 .05 .05 .03 .13 .28 .05 -- --
tion
fees
added
to paid
in
capital
Net
$ 102.45 $ 100.47 $ 76.13 $ 63.31 $ 52.57 $ 70.42 $ 69.99 $ 46.15 $ 39.79 $ 33.59
asset
value,
end of
period
Total
20.41% 39.68% 31.24% 20.57% (14.81) 13.92% 69.32% 18.55% 19.44% (17.58)
returnF, %
%
G
Net
$ 1,372,55 $ 1,525,91 $ 943,141 $ 522,890 $ 536,367 $ 838,814 $ 624,018 $ 217,522 $ 210,700 $ 208,048
assets,
4 0
end of
period
(000
omitted)
Ratio of
1.33% 1.31% 1.39% 1.59% 1.46% 1.44% 1.53% 1.74% 1.41% 1.64%
expense j146 A
s to
average
net
assets
Ratio of
1.32% 1.30% 1.36% 1.55% 1.46% 1.44% 1.53% 1.74% 1.41% 1.64%
expense
B B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of
.52% 1.06% 1.08% .26% .24% (.02) 1.28% 1.61% .95% .06%
net j24 A j02 %
investm
ent
income
(loss) to
average
net
assets
Portfolio
59% 54% 151% 213% 112% 154% 159% 126% 114% 122%
turnover j112 A
rate
Average $ .0466
commis
sion
rateK
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
I INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.55 PER SHARE.
J FOR THE YEAR ENDED FEBRUARY 29
K 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.
HOME FINANCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996F 1995 1994 1993D 1992E 1991E 1990E 1989E 1988E
ended
Februar
y 28
Net $ 33.30 $ 23.92 $ 25.03 $ 22.18 $ 15.38 $ 10.84 $ 8.98 $ 10.88 $ 8.57 $ 14.44
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .53 .53 .20 .03 .09 .05 .16 .09 .11 .02
investm
ent
income
Net 14.60 9.72 2.34 4.15 6.80 4.40 1.69 (1.47) 2.33 (2.39)
realized
and
unrealiz
ed gain
(loss)
Total 15.13 10.25 2.54 4.18 6.89 4.45 1.85 (1.38) 2.44 (2.37)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.32) (.19) (.12) (.01) (.01) (.14) (.14) (.04) (.13) --
net
investm
ent
income
From (2.16) (.73) (3.60) (1.40) (.28) -- -- (.49) -- (3.50)
net
realized
gain
Total (2.48) (.92) (3.72) (1.41) (.29) (.14) (.14) (.53) (.13) (3.50)
distributi
ons
Redemp .05 .05 .07 .08 .20 .23 .15 .01 -- --
tion
fees
added
to paid
in
capital
Net $ 46.00 $ 33.30 $ 23.92 $ 25.03 $ 22.18 $ 15.38 $ 10.84 $ 8.98 $ 10.88 $ 8.57
asset
value,
end of
period
Total 47.50% 43.24% 12.43% 19.61% 46.43% 43.62% 22.88% (13.04) 28.76% (11.60)
returnG, % %
H
Net $ 1,176,82 $ 617,035 $ 229,924 $ 155,563 $ 337,903 $ 49,405 $ 8,782 $ 5,432 $ 5,557 $ 6,387
assets, 8
end of
period
(000
omitted)
Ratio of 1.38% 1.35% 1.47% 1.58% 1.55% 2.08% 2.50%I 2.53%I 2.56%I 2.57%I
expense A
s to
average
net
assets
Ratio of 1.34% 1.32% 1.45% 1.58% 1.55% 2.08% 2.50% 2.53% 2.56% 2.57%
expense C C C A
s to
average
net
assets
after
expense
reductio
ns
Ratio of 1.41% 1.80% .80% .11% .61% .40% 1.78% .83% 1.13% .17%
net A
investm
ent
income
to
average
net
assets
Portfolio 78% 81% 124% 95% 61% 134% 159% 282% 216% 456%
turnover A
rate
Average $ .0417
commis
sion
rateK
</TABLE>
INDUSTRIAL EQUIPMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996F 1995 1994 1993D 1992E 1991E 1990E 1989E 1988E
ended
Februar
y 28
Net $ 25.11 $ 20.04 $ 20.61 $ 15.04 $ 13.89 $ 11.60 $ 12.41 $ 11.05 $ 10.52 $ 12.75
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .06 .04 .01 -- .02 (.07) .01 .13B (.07) (.04)
investm
ent
income
(loss)
Net 4.15 7.10 (.44) 5.92 1.09 2.39 (.80) 1.19 .60 (1.96)
realized
and
unrealiz
ed gain
(loss)
Total 4.21 7.14 (.43) 5.92 1.11 2.32 (.79) 1.32 .53 (2.00)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.04) (.05) (.01) (.01) -- -- -- -- -- --
net
investm
ent
income
In -- -- -- -- -- (.11) (.09) -- -- --
excess
of net
investm
ent
income
From (3.84) (2.05) (.16) (.40) -- -- -- -- -- (.23)
net
realized
gain
Total (3.88) (2.10) (.17) (.41) -- (.11) (.09) -- -- (.23)
distributi
ons
Redemp .07 .03 .03 .06 .04 .08 .07 .04 -- --
tion
fees
added
to paid
in
capital
Net $ 25.51 $ 25.11 $ 20.04 $ 20.61 $ 15.04 $ 13.89 $ 11.60 $ 12.41 $ 11.05 $ 10.52
asset
value,
end of
period
Total 18.25% 36.86% (1.93) 40.07% 8.28% 20.91% (5.90) 12.31% 5.04% (15.32)
returnG, % % %
H
Net $ 102,882 $ 137,520 $ 109,968 $ 206,012 $ 14,601 $ 7,529 $ 1,949 $ 3,240 $ 2,965 $ 5,607
assets,
end of
period
(000
omitted)
Ratio of 1.51% 1.54% 1.80% 1.69% 2.49% 2.49%I 2.52%I 2.59%I 2.58%I 2.65%I
expense A,I
s to
average
net
assets
Ratio of 1.44% 1.53% 1.78% 1.68% 2.49% 2.49% 2.52% 2.59% 2.58% 2.65%
expense C C C C A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .25% .19% .06% .01% .15% (.57) .09% 1.06% (.66) (.37)
net A % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 261% 115% 131% 95% 407% 167% 43% 132% 164% 407%
turnover A
rate
Average $ .0401
commis
sions
rateK
</TABLE>
A ANNUALIZED
B INVESTMENT INCOME (loss) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.11 PER SHARE.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
D FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
E FOR THE YEAR ENDED APRIL 30
F FOR THE YEAR ENDED FEBRUARY 29
G TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
H THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
I DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
K 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.
INDUSTRIAL MATERIALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996E 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 26.07 $ 23.13 $ 21.67 $ 17.44 $ 17.12 $ 12.63 $ 12.43 $ 13.73 $ 13.15 $ 14.56
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .06 .12 .17 .15 .12 .04 .15 .17 (.07) .06
investm
ent
income
(loss)
Net 3.12 2.92 1.43 4.07 .19 4.32 .37 (1.50) .86 (1.44)
realized
and
unrealiz
ed gain
(loss)
Total 3.18 3.04 1.60 4.22 .31 4.36 .52 (1.33) .79 (1.38)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.06) (.15) (.18) (.06) (.08) -- -- -- (.21) (.02)
net
investm
ent
income
In -- -- -- -- -- (.06) (.34) -- -- --
excess
of net
investm
ent
income
From (1.57) -- -- -- -- -- -- -- -- (.01)
net
realized
gain
Total (1.63) (.15) (.18) (.06) (.08) (.06) (.34) -- (.21) (.03)
distributi
ons
Redemp .04 .05 .04 .07 .09 .19 .02 .03 -- --
tion
fees
added
to paid
in
capital
Net $ 27.66 $ 26.07 $ 23.13 $ 21.67 $ 17.44 $ 17.12 $ 12.63 $ 12.43 $ 13.73 $ 13.15
asset
value,
end of
period
Total 12.69% 13.38% 7.65% 24.66% 2.36% 36.15% 4.25% (9.47) 6.13% (9.45)
returnF, % %
G
Net $ 66,462 $ 86,338 $ 183,454 $ 155,721 $ 25,041 $ 22,184 $ 2,689 $ 3,140 $ 8,571 $ 42,751
assets,
end of
period
(000
omitted)
Ratio of 1.54% 1.64% 1.56% 2.10% 2.02% 2.47% 2.49% 2.59% 2.68% 2.43%
expense A H H H H H
s to
average
net
assets
Ratio of 1.51% 1.61% 1.53% 2.08% 2.02% 2.47% 2.49% 2.59% 2.68% 2.43%
expense B B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .23% .49% .77% .75% .86% .25% 1.30% 1.22% (.54) .53%
net A %
investm
ent
income
(loss) to
average
net
assets
Portfolio 105% 138% 139% 185% 273% 222% 148% 250% 289% 455%
turnover A
rate
Average $ .0242
commis
sion
rateJ
</TABLE>
INSURANCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996E 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 26.77 $ 21.31 $ 19.41 $ 21.58 $ 18.03 $ 16.73 $ 13.63 $ 12.65 $ 9.90 $ 11.30
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .01 .06 .05 -- (.04) .04 .23 .17 .11 .03
investm
ent
income
(loss)
Net 7.21 6.15 1.78 (.24) 5.12 1.48 2.83 .93 2.73 (1.29)
realized
and
unrealiz
ed gain
(loss)
Total 7.22 6.21 1.83 (.24) 5.08 1.52 3.06 1.10 2.84 (1.26)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.03) (.07) -- (.01) -- (.26) -- (.15) (.09) (.14)
net
investm
ent
income
In -- -- -- -- (.03) -- -- -- -- --
excess
of net
investm
ent
income
From (1.45) (.72) -- (1.96) (1.71) -- -- -- -- --
net
realized
gain
Total (1.48) (.79) -- (1.97) (1.74) (.26) -- (.15) (.09) (.14)
distributi
ons
Redemp .11 .04 .07 .04 .21 .04 .04 .03 - -
tion
fees
added
to paid
in
capital
Net $ 32.62 $ 26.77 $ 21.31 $ 19.41 $ 21.58 $ 18.03 $ 16.73 $ 13.63 $ 12.65 $ 9.90
asset
value,
end of
period
Total 28.28% 29.51% 9.79% (1.24) 31.98% 9.47% 22.74% 8.82% 28.83% (11.04)
returnF, % %
G
Net $ 42,367 $ 38,994 $ 21,838 $ 18,419 $ 26,367 $ 2,573 $ 2,176 $ 2,240 $ 3,160 $ 3,515
assets,
end of
period
(000
omitted)
Ratio of 1.82% 1.77% 2.36% 1.93% 2.49% 2.47% 2.49% 2.50% 2.53% 2.48%
expense A,H H H H H H
s to
average
net
assets
Ratio of 1.77% 1.74% 2.34% 1.93% 2.49% 2.47% 2.49% 2.50% 2.53% 2.48%
expense B B B A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .05% .26% .25% (.02) (.26)% .22% 1.58% 1.15% .98% .28%
net % A
investm
ent
income
(loss) to
average
net
assets
Portfolio 142% 164% 265% 101% 81% 112% 98% 158% 95% 174%
turnover A
rate
Average $ .0261
commis
sion
rateJ
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E FOR THE YEAR ENDED FEBRUARY 29
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUNDS
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
I NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
J 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.
LEISURE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996H 1995 1994 1993B 1992C 1991C 1990C 1989C 1988C
ended
Februar
y 28
Net $ 46.17 $ 40.71 $ 45.30 $ 35.77 $ 31.65 $ 26.32 $ 24.90 $ 28.51 $ 22.38 $ 24.83
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.06)L (.21) (.21) (.29) (.11) (.08) .08 .26G .12 (.03)
investm
ent
income
(loss)
Net 4.47 10.97 (.48) 12.98 4.21 5.40 1.55 (1.81) 6.41 (.39)
realized
and
unrealiz
ed gain
(loss)
Total 4.41 10.76 (.69) 12.69 4.10 5.32 1.63 (1.55) 6.53 (.42)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- -- -- -- (.23) (.07) -- --
net
investm
ent
income
From (2.83) (5.32) (3.93) (3.26) -- -- -- (2.03) (.40) (2.03)
net
realized
gain
Total (2.83) (5.32) (3.93) (3.26) -- -- (.23) (2.10) (.40) (2.03)
distributi
ons
Redemp .08 .02 .03 .10 .02 .01 .02 .04 -- --
tion
fees
added
to paid
in
capital
Net $ 47.83 $ 46.17 $ 40.71 $ 45.30 $ 35.77 $ 31.65 $ 26.32 $ 24.90 $ 28.51 $ 22.38
asset
value,
end of
period
Total 10.14% 27.61% (1.07) 37.14% 13.02% 20.25% 6.78% (6.33) 29.65% .25%
returnE, % %
F
Net $ 98,133 $ 85,013 $ 69,569 $ 105,833 $ 44,824 $ 40,051 $ 40,727 $ 49,609 $ 91,367 $ 56,149
assets,
end of
period
(000
omitted)
Ratio of 1.56% 1.64% 1.64% 1.55% 1.90% 2.21% 2.27% 1.96% 1.73% 1.96%
expense A
s to
average
net
assets
Ratio of 1.54% 1.63% 1.62% 1.53% 1.90% 2.21% 2.27% 1.96% 1.73% 1.96%
expense D D D D A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.12) (.46) (.52) (.69) (.39) (.28) .34% .86% .50% (.13)
net % % % % %A % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 127% 141% 103% 170% 109% 45% 75% 124% 249% 229%
turnover A
rate
Average $ .0370
commis
sion
rateK
</TABLE>
MEDICAL DELIVERY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996H 1995 1994 1993B 1992C 1991C 1990C 1989C 1988C
ended
Februar
y 28
Net $ 29.00 $ 23.18 $ 20.28 $ 14.46 $ 19.64 $ 18.75 $ 11.17 $ 9.85 $ 7.42 $ 8.67
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.23) (.03) .06 (.10) (.13) (.15) (.01) .16 .05 (.05)
investm
ent
income
(loss)
Net 2.92 7.72 3.74 5.84 (3.56) 2.16 7.76 1.43 2.38 (.82)
realized
and
unrealiz
ed gain
(loss)
Total 2.69 7.69 3.80 5.74 (3.69) 2.01 7.75 1.59 2.43 (.87)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- (.06) -- -- -- -- (.05) -- (.02)
net
investm
ent
income
From (3.45) (1.91) (.89) -- (1.55) (1.24) (.39) (.26) -- (.36)
net
realized
gain
Total (3.45) (1.91) (.95) -- (1.55) (1.24) (.39) (.31) -- (.38)
distributi
ons
Redemp .05 .04 .05 .08 .06 .12 .22 .04 --
--
tion
fees
added
to paid
in
capital
Net $ 28.29 $ 29.00 $ 23.18 $ 20.28 $ 14.46 $ 19.64 $ 18.75 $ 11.17 $ 9.85 $ 7.42
asset
value,
end of
period
Total 10.50% 34.15% 19.63% 40.25% (19.63) 11.71% 72.85% 16.35% 32.75% (9.11)
returnE, % %
F
Net $ 192,385 $ 295,489 $ 299,570 $ 188,553 $ 71,809 $ 129,361 $ 131,622 $ 23,559 $ 20,077 $ 3,639
assets,
end of
period
(000
omitted)
Ratio of 1.57% 1.65% 1.48% 1.82% 1.77% 1.69% 1.94% 2.16% 2.48%I 2.48%I
expense A
s to
average
net
assets
Ratio of 1.53% 1.62% 1.45% 1.79% 1.77% 1.69% 1.94% 2.16% 2.48% 2.48%
expense D D D D A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.84) (.13) .29% (.57) (.89) (.71) (.07) 1.43% .59% (.65)
net % % % %A % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 78% 132% 123% 164% 155% 181% 165% 253% 92%
264%
turnover j155 A
rate
Average $ .0434
commis
sion
rateK
</TABLE>
A ANNUALIZED
B FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
C FOR THE YEAR ENDED APRIL 30
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
E TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
F THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
G INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO
$.16 PER SHARE.
H FOR THE YEAR ENDED FEBRUARY 29
I DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
K 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.
L INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND FROM ADVO,
INC. WHICH AMOUNTED TO $.23 PER SHARE.
MULTIMEDIA
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosK
Years 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $27.18 $ 22.35 $ 23.87 $ 18.26 $ 15.93 $ 12.96 $ 11.65 $ 16.20 $ 12.45 $ 12.05
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .35L .02 (.01) (.10) (.07) (.17) (.05) (.02)H (.14) (.06)
investm
ent
income
(loss)
Net (1.58) 7.00 1.67 6.28 2.61 3.08 1.29 (1.96) 4.64 1.25
realized
and
unrealiz
ed gain
(loss)
Total (1.23) 7.02 1.66 6.18 2.54 2.91 1.24 (1.98) 4.50 1.19
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- (.02) -- -- -- -- -- -- -- (.01)
net
investm
ent
income
From (1.07) (2.19) (3.21) (.65) (.23) -- -- (2.57) (.75) (.78)
net
realized
gain
Total (1.07) (2.21) (3.21) (.65) (.23) -- -- (2.57) (.75) (.79)
distributi
ons
Redemp .03 .02 .03 .08 .02 .06 .07 -- -- --
tion
fees
added
to paid
in
capital
Net $24.91 $ 27.18 $ 22.35 $ 23.87 $ 18.26 $ 15.93 $ 12.96 $ 11.65 $ 16.20 $ 12.45
asset
value,
end of
period
Total (4.52) 31.98% 9.35% 34.86% 16.14% 22.92% 11.24% (15.32) 38.22% 11.49%
returnF, % %
G
Net $54,171 $ 94,970 $ 38,157 $ 49,177 $ 16,647 $ 8,393 $ 5,177 $ 7,400 $ 45,670 $ 17,356
assets,
end of
period
(000
omitted)
Ratio of 1.60% 1.56% 2.05% 1.66% 2.49% 2.49%I 2.53%I 2.51%I 2.66%I 2.48%I
expense A,I
s to
average
net
assets
Ratio of 1.56% 1.54% 2.03% 1.63% 2.49% 2.49% 2.53% 2.51% 2.66% 2.48%
expense E E E E A
s to
average
net
assets
after
expense
reductio
ns
Ratio of 1.33% .08% (.07) (.42) (.52) (1.22) (.43) (.14) (1.01) (.52)
net % % %A % % % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 99% 223% 107% 340% 70% 111% 150% 75% 437% 325%
turnover A
rate
Average $ .0400
commis
sion
rateM
</TABLE>
NATURAL GAS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosK
Years 1997 1996J 1995 1994B
ended
Februar
y 28
Net $ 11.36 $ 8.98 $ 9.48 $ 10.00
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.06) .05 .03 .02
investm
ent
income
(loss)
Net 1.30N 2.36 (.53) (.46)
realized
and
unrealiz
ed gain
(loss)
Total 1.24 2.41 (.50) (.44)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.01) (.05) (.02) --
net
investm
ent
income
From (.29) -- -- (.07)
net
realized
gain
In -- -- -- (.06)
excess
of net
realized
gain
Total (.30) (.05) (.02) (.13)
distributi
ons
Redemp .20 .02 .02 .05
tion
fees
added
to paid
in
capital
Net $ 12.50 $ 11.36 $ 8.98 $ 9.48
asset
value,
end of
period
Total 12.45% 27.10% (5.06) (3.84)%
returnF, %
G
Net $ 81,566 $ 60,228 $ 79,894 $ 63,073
assets,
end of
period
(000
omitted)
Ratio of 1.70% 1.68% 1.70% 1.94%
expense A
s to
average
net
assets
Ratio of 1.66% 1.67% 1.66% 1.93%
expense E E E A,E
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.46) .46% .30% .17%
net % A
investm
ent
income
(loss) to
average
net
assets
Portfolio 283% 79% 177% 44%
turnover A
rate
Average $ .0361
commis
sion
rateM
</TABLE>
A ANNUALIZED
B FROM APRIL 21, 1993 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1994
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
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.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.05 PER SHARE.
I DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
J FOR THE YEAR ENDED FEBRUARY 29
K NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
L INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM ADVO, INC.
WHICH AMOUNTED TO $.49 PER SHARE.
M 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.
N THE AMOUNT SHOWN FOR A SHARE OUTSTANDING DOES NOT CORRESPOND WITH THE
AGGREGATE NET LOSS ON INVESTMENTS FOR THE PERIOD DUE TO THE TIMING OF SALES
AND REPURCHASES OF FUND SHARES IN RELATION TO FLUCTUATING MARKET VALUES OF
THE INVESTMENTS OF THE FUND.
PAPER AND FOREST PRODUCTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996G 1995 1994 1993B 1992C 1991C 1990C 1989C 1988C
ended
Februar
y 28
Net $20.78 $21.14 $ 19.61 $ 16.08 $ 15.37 $ 12.64 $ 11.00 $ 12.33 $ 11.71 $ 15.86
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .01 .08 .01 (.01) .06 .13 .19 .11 .01 (.03)
investm
ent
income
(loss)
Net 2.08 1.83 2.53 3.38 .65 2.64 1.56 (1.31) .64 (3.04)
realized
and
unrealiz
ed gain
(loss)
Total 2.09 1.91 2.54 3.37 .71 2.77 1.75 (1.20) .65 (3.07)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.03) (.08) -- (.01) (.09) (.30) (.17) (.15) (.03) (.04)
net
investm
ent
income
In (.07) -- -- -- -- -- -- -- -- --
excess
of net
investm
ent
income
From (1.25) (2.27) (1.17) -- -- -- -- -- -- (1.04)
net
realized
gain
Total (1.35) (2.35) (1.17) (.01) (.09) (.30) (.17) (.15) (.03) (1.08)
distributi
ons
Redemp .11 .08 .16 .17 .09 .26 .06 .02 -- --
tion
fees
added
to paid
in
capital
Net $21.63 $ 20.78 $ 21.14 $ 19.61 $ 16.08 $ 15.37 $ 12.64 $ 11.00 $ 12.33 $ 11.71
asset
value,
end of
period
Total 10.87% 9.18% 14.91% 22.03% 5.25% 24.52% 16.85% (9.68) 5.57% (19.01)
returnE, % %
F
Net $19,484 $27,270 $ 94,219 $ 66,908 $ 25,098 $ 28,957 $ 12,579 $ 5,289 $ 9,479 $ 15,426
assets,
end of
period
(000
omitted)
Ratio of 2.19% 1.91% 1.88% 2.08% 2.21% 2.05% 2.49% 2.57% 2.54% 2.52%
expense A H H H H
s to
average
net
assets
Ratio of 2.16% 1.90% 1.87% 2.07% 2.21% 2.05% 2.49% 2.57% 2.54% 2.52%
expense D D D D A
s to
average
net
assets
after
expense
reductio
ns
Ratio of .04% .34% .05% (.08) .49% .92% 1.73% .92% .07% (.20)
net % A %
investm
ent
income
(loss) to
average
net
assets
Portfolio 180% 78% 209% 176% 222% 421% 171% 221% 154% 209%
turnover A
rate
Average $ .0306
commis
sion
rateJ
</TABLE>
PRECIOUS METALS AND MINERALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosI
Years 1997 1996G 1995 1994 1993B 1992C 1991C 1990C 1989C 1988C
ended
Februar
y 28
Net $20.96 $15.27 $16.62 $9.86 $ 9.90 $ 10.68 $ 12.23 $ 11.35 $ 13.09 $ 18.38
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.01) .07 .17 .21 .09 .10 .18 .13 .26 .41
investm
ent
income
(loss)
Net (1.42) 5.54 (1.42) 6.48 (.05) (.91) (1.71) .84 (1.54) (5.51)
realized
and
unrealiz
ed gain
(loss)
Total (1.43) 5.61 (1.25) 6.69 .04 (.81) (1.53) .97 (1.28) (5.10)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.04) (.06) (.18) (.19) (.17) (.10) (.15) (.18) (.46) (.07)
net
investm
ent
income
In (.01) -- (.05) (.02) -- -- -- -- -- --
excess
of net
investm
ent
income
From -- -- -- -- -- -- -- -- -- (.12)
net
realized
gain
Total (.05) (.06) (.23) (.21) (.17) (.10) (.15) (.18) (.46) (.19)
distributi
ons
Redemp .12 .14 .13 .28 .09 .13 .13 .09 -- --
tion
fees
added
to paid
in
capital
Net $19.60 $20.96 $15.27 $ 16.62 $ 9.86 $ 9.90 $ 10.68 $ 12.23 $ 11.35 $ 13.09
asset
value,
end of
period
Total (6.26) 37.74% (6.86) 70.58% 1.51% (6.46) (11.45) 9.08% (9.63) (27.88)
returnE, % % % % % %
F
Net $325,586 $467,196 $364,204 $409,212 $ 137,922 $ 130,002 $ 155,367 $ 192,551 $ 180,837 $ 242,810
assets,
end of
period
(000
omitted)
Ratio of 1.62% 1.52% 1.46% 1.55% 1.73% 1.81% 1.79% 1.93% 1.88% 2.02%
expense A
s to
average
net
assets
Ratio of 1.61% 1.52% 1.46% 1.55% 1.73% 1.81% 1.79% 1.93% 1.88% 2.02%
expense D A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.05) .39% .99% 1.38% 1.12% .92% 1.52% 1.01% 2.18% 2.42%
net % A
investm
ent
income
(loss) to
average
net
assets
Portfolio 54% 53% 43% 73% 36% 44% 41% 98% 72% 86%
turnover A
rate
Average $ .0141
commis
sion
rateJ
</TABLE>
A ANNUALIZED
B FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
C FOR THE YEAR ENDED APRIL 30
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
E TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
F THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
G FOR THE YEAR ENDED FEBRUARY 29
H DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
I NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
J 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.
REGIONAL BANKS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996B 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $24.37 $18.01 $ 17.99 $ 20.88 $ 16.48 $ 11.40 $ 9.77 $ 11.33 $ 8.94 $ 9.21
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .37 .52 .37 .19 .16 .25 .22 .21 .22 .15
investm
ent
income
Net 9.70 6.78 .87 .93 5.09 5.37 1.41 (1.03) 2.84 (.21)
realized
and
unrealiz
ed gain
(loss)
Total 10.07 7.30 1.24 1.12 5.25 5.62 1.63 (.82) 3.06 (.06)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.27) (.25) (.29) (.15) (.11) (.15) (.15) (.11) (.20) (.06)
net
investm
ent
income
From (1.40) (.72) (.98) (3.92) (.81) (.53) -- (.65) (.47) (.15)
net
realized
gain
Total (1.67) (.97) (1.27) (4.07) (.92) (.68) (.15) (.76) (.67) (.21)
distributi
ons
Redemp .05 .03 .05 .06 .07 .14 .15 .02 -- --
tion
fees
added
to paid
in
capital
Net $32.82 $24.37 $ 18.01 $ 17.99 $ 20.88 $ 16.48 $ 11.40 $ 9.77 $ 11.33 $ 8.94
asset
value,
end of
period
Total 43.33% 40.94% 7.79% 6.46% 33.10% 52.34% 18.73% (7.94) 35.71% (.16)
returnF, % %
G
Net $837,952 $315,178 $164,603 $ 97,429 $ 315,520 $ 156,570 $ 24,212 $ 5,410 $ 17,961 $ 9,087
assets,
end of
period
(000
omitted)
Ratio of 1.46% 1.41% 1.58% 1.62% 1.49% 1.77% 2.51%I 2.55%I 2.53%I 2.48%I
expense A
s to
average
net
assets
Ratio of 1.45% 1.40% 1.56% 1.60% 1.49% 1.77% 2.51% 2.55% 2.53% 2.48%
expense E E E E A
s to
average
net
assets
after
expense
reductio
ns
Ratio of 1.36% 2.42% 1.99% .88% 1.06% 1.80% 2.34% 1.74% 2.24% 1.61%
net A
investm
ent
income
to
average
net
assets
Portfolio 43% 103% 106% 74% 63% 89% 110% 411% 352% 291%
turnover A
rate
Average $ .0384
commis
sion
rateK
</TABLE>
RETAILING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosJ
Years 1997 1996B 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $27.87 $23.91 $ 24.91 $ 23.87 $ 22.13 $ 17.42 $ 13.94 $ 14.60 $ 11.57 $ 13.51
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.13) (.14) (.18) (.22) (.08) (.03) (.05) .32H .06 .02
investm
ent
income
(loss)
Net 5.49 4.07 (.96) 3.85 2.93 5.09 3.43 1.72 3.18 (.97)
realized
and
unrealiz
ed gain
(loss)
Total 5.36 3.93 (1.14) 3.63 2.85 5.06 3.38 2.04 3.24 (.95)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- -- -- -- -- (.16) (.03) (.23)
net
investm
ent
income
From (.08) -- -- (2.63) (1.17) (.50) (.03) (2.57) (.18) (.76)
net
realized
gain
Total (.08) -- -- (2.63) (1.17) (.50) (.03) (2.73) (.21) (.99)
distributi
ons
Redemp .10 .03 .14 .04 .06 .15 .13 .03 -- --
tion
fees
added
to paid
in
capital
Net $33.25 $27.87 $ 23.91 $ 24.91 $ 23.87 $ 22.13 $ 17.42 $ 13.94 $ 14.60 $ 11.57
asset
value,
end of
period
Total 19.59% 16.56% (4.01) 15.61% 13.72% 30.28% 25.26% 15.01% 28.32% (4.95)
returnF, % %
G
Net $59,348 $44,051 $ 31,090 $ 52,790 $ 74,878 $ 48,441 $ 18,069 $ 8,451 $ 9,149 $ 15,103
assets,
end of
period
(000
omitted)
Ratio of 1.45% 1.94% 2.07% 1.86% 1.77% 1.87% 2.54%I 2.50%I 2.51%I 2.47%I
expense A
s to
average
net
assets
Ratio of 1.39% 1.92% 1.96% 1.83% 1.77% 1.87% 2.54% 2.50% 2.51% 2.47%
expense E E E E A
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.39) (.53) (.74) (.87) (.44) (.13) (.34) 2.13% .48% .13%
net % % % % %A % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 278% 235% 481% 154% 171% 205% 115% 212% 290% 294%
turnover A
rate
Average $ .0403
commis
sion
rateK
</TABLE>
A ANNUALIZED
B FOR THE YEAR ENDED FEBRUARY 29
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
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.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.29 PER SHARE.
I DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
J NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
K 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.
SOFTWARE AND COMPUTER SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosH
Years 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 36.20 $ 29.07 $ 28.89 $ 27.62 $ 21.63 $ 19.77 $ 15.58 $ 15.75 $ 14.36 $ 17.35
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.25) (.19) (.26) (.34) (.07)B (.28) (.14)I (.20) (.22) (.10)
investm
ent
income
(loss)
Net 5.87 11.85 .67 7.92 5.88 4.37 4.06 .82 1.61 (2.21)
realized
and
unrealiz
ed gain
(loss)
Total 5.62 11.66 .41 7.58 5.81 4.09 3.92 .62 1.39 (2.31)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (3.31) (4.60) (.33) (6.48) -- (2.50) -- (.86) -- (.68)
net
realized
gain
Redemp .07 .07 .10 .17 .18 .27 .27 .07 -- --
tion
fees
added
to paid
in
capital
Net $ 38.58 $ 36.20 $ 29.07 $ 28.89 $ 27.62 $ 21.63 $ 19.77 $ 15.58 $ 15.75 $ 14.36
asset
value,
end of
period
Total 16.14% 40.17% 1.97% 33.19% 27.69% 25.36% 26.89% 4.64% 9.68% (12.86)
returnF, %
G
Net $ 389,699 $ 337,633 $ 236,445 $ 178,034 $ 151,212 $ 89,571 $ 17,290 $ 10,539 $ 14,046 $ 23,084
assets,
end of
period
(000
omitted)
Ratio of 1.54% 1.48% 1.52% 1.57% 1.64%A 1.98% 2.50%M 2.56%M 2.63%M 2.51%M
expense
s to
average
net
assets
Ratio of 1.51%E 1.47%E 1.50%E 1.57% 1.64%A 1.98% 2.50% 2.56% 2.63% 2.51%
expense
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.66) (.54) (1.01) (1.19) (.37) (1.30) (.84) (1.30) (1.51) (.61)
net % % % % %A % % % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 279% 183% 164% 376% 402%A 348% 326% 284% 434% 134%
turnover
rate
Average $ .0427
commis
sion
rateN
</TABLE>
TECHNOLOGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosH
Years 1997 1996J 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 54.67 $ 42.05 $ 41.83 $ 34.62 $ 32.44 $ 27.06 $ 20.08 $ 18.37 $ 18.22 $ 25.98
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.39) (.28) (.39) (.24)B .13L (.26) .14K (.15) (.12) (.16)
investm
ent
income
(loss)
Net 6.95 20.83 1.95 11.04 4.68 5.56 6.46 1.75 .27 (6.80)
realized
and
unrealiz
ed gain
(loss)
Total 6.56 20.55 1.56 10.80 4.81 5.30 6.60 1.60 .15 (6.96)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- (.13) -- -- -- -- -- --
net
investm
ent
income
In -- -- -- -- -- (.16) -- -- -- --
excess
of net
investm
ent
income
From (3.68) (8.05) (1.50) (3.70) (2.75) -- -- -- -- (.80)
net
realized
gain
Total (3.68) (8.05) (1.50) (3.83) (2.75) (.16) -- -- -- (.80)
distributi
ons
Redemp .15 .12 .16 .24 .12 .24 .38 .11 -- --
tion
fees
added
to paid
in
capital
Net $ 57.70 $ 54.67 $ 42.05 $ 41.83 $ 34.62 $ 32.44 $ 27.06 $ 20.08 $ 18.37 $ 18.22
asset
value,
end of
period
Total 12.64% 50.71% 4.61% 35.62% 16.48% 20.57% 34.76% 9.31% .82% (26.49)
returnF, %
G
Net $ 478,444 $ 483,026 $ 229,761 $ 202,475 $ 132,689 $ 105,954 $ 117,055 $ 78,535 $ 105,604 $ 137,956
assets,
end of
period
(000
omitted)
Ratio of 1.49% 1.40% 1.57% 1.55% 1.64%A 1.72% 1.83% 2.09% 1.86% 1.76%
expense
s to
average
net
assets
Ratio of 1.44%E 1.39%E 1.56%E 1.54%E 1.64%A 1.72% 1.83% 2.09% 1.86% 1.76%
expense
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.72) (.52) (.98) (.65) .52% (.84) .61% (.76) (.67) (.71)
net % % % % A % % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 549% 112% 102% 213% 259%A 353% 442% 327% 397% 140%
turnover
rate
Average $ .0191
commis
sion
rateN
</TABLE>
A ANNUALIZED
B INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A DIVIDENDS RECEIVED IN
ARREARS WHICH AMOUNTED TO $.03 PER SHARE.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
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.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
I INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO
$.02 PER SHARE.
J FOR THE YEAR ENDED FEBRUARY 29
K INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.06 PER SHARE AND $.20 PER SHARE RELATING TO A NONRECURRING
INITIATIVE TO INVEST IN DIVIDEND INCOME PRODUCING SECURITIES WHICH WAS IN
EFFECT FOR A PORTION OF 1991.
L INVESTMENT INCOME PER SHARE REFLECTS A DIVIDENDS RECEIVED IN ARREARS
WHICH AMOUNTED TO $.10 PER SHARE.
M DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
N 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.
TELECOMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosH
Years 1997 1996E 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 44.87 $ 38.34 $ 37.10 $ 34.19 $ 29.22 $ 24.98 $ 23.19 $ 22.76 $ 16.52 $ 15.65
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .12K .51 .29 .25 .29 .36 .31 .46 .30 .27
investm
ent
income
Net 2.92 9.15 2.54 7.00 5.29 4.13 1.86 1.02 6.09 .98
realized
and
unrealiz
ed gain
(loss)
Total 3.04 9.66 2.83 7.25 5.58 4.49 2.17 1.48 6.39 1.25
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.16)M (.39) (.33) (.20) (.18) (.28) (.43) (.12) (.12) (.02)
net
investm
ent
income
From (5.98)M (2.75) (1.27) (4.18) (.48) -- -- (.98) (.03) (.36)
net
realized
gain
Total (6.14) (3.14) (1.60) (4.38) (.66) (.28) (.43) (1.10) (.15) (.38)
distributi
ons
Redemp .03 .01 .01 .04 .05 .03 .05 .05 -- --
tion
fees
added
to paid
in
capital
Net $ 41.80 $ 44.87 $ 38.34 $ 37.10 $ 34.19 $ 29.22 $ 24.98 $ 23.19 $ 22.76 $ 16.52
asset
value,
end of
period
Total 7.85% 25.79% 7.98% 21.90% 19.49% 18.19% 9.83% 6.21% 38.90% 8.45%
returnF,
G
Net $ 388,535 $ 468,300 $ 369,476 $ 371,025 $ 134,338 $ 78,533 $ 55,162 $ 77,019 $ 116,016 $ 36,372
assets,
end of
period
(000
omitted)
Ratio of 1.51% 1.52% 1.56% 1.54% 1.74%A 1.90% 1.97% 1.85% 2.12% 2.48%I
expense
s to
average
net
assets
Ratio of 1.47%B 1.52% 1.55%B 1.53%B 1.74%A 1.90% 1.97% 1.85% 2.12% 2.48%
expense
s to
average
net
assets
after
expense
reductio
ns
Ratio of .27% 1.17% .77% .64% 1.16%A 1.32% 1.35% 1.83% 1.63% 1.64%
net
investm
ent
income
to
average
net
assets
Portfolio 175% 89% 107% 241% 115%A 20% 262% 341% 224% 162%
turnover
rate
Average $ .0321
commis
sion
rateL
</TABLE>
TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Selecte
d
Per-Sha
re Data
and
RatiosH
Years 1997 1996E 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Net $ 21.92 $ 20.53 $ 21.67 $ 18.68 $ 15.49 $ 11.26 $ 12.23 $ 13.59 $ 9.87 $ 11.83
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net (.13) (.09)I (.17) (.20) (.07) (.05) .06 (.03) (.04) (.06)
investm
ent
income
(loss)
Net 1.06 2.60 1.17 5.07 3.55 4.18 (.57) .96 3.76 (1.77)
realized
and
unrealiz
ed gain
(loss)
Total .93 2.51 1.00 4.87 3.48 4.13 (.51) .93 3.72 (1.83)
from
investm
ent
operatio
ns
Less
Distribut
ions
From -- -- -- -- -- (.04) -- -- -- --
net
investm
ent
income
From (.71) (1.22) (2.19) (1.96) (.36) -- (.50) (2.32) -- (.13)
net
realized
gain
Total (.71) (1.22) (2.19) (1.96) (.36) (.04) (.50) (2.32) -- (.13)
distributi
ons
Redemp .09 .10 .05 .08 .07 .14 .04 .03 -- --
tion
fees
added
to paid
in
capital
Net $ 22.23 $ 21.92 $ 20.53 $ 21.67 $ 18.68 $ 15.49 $ 11.26 $ 12.23 $ 13.59 $ 9.87
asset
value,
end of
period
Total 4.67% 12.95% 5.90% 27.47% 23.14% 38.01% (4.10) 6.90% 37.69% (15.17)
returnF, % %
G
Net $ 8,890 $ 11,445 $ 12,704 $ 13,077 $ 10,780 $ 2,998 $ 770 $ 1,630 $ 3,998 $ 1,355
assets,
end of
period
(000
omitted)
Ratio of 2.50%J 2.47%J 2.37% 2.40% 2.48%A,J 2.43%J 2.39%J 2.50%J 2.50%J 2.41%J
expense
s to
average
net
assets
Ratio of 2.48%B 2.44%B 2.36%B 2.39%B 2.48%A 2.43% 2.39% 2.50% 2.50% 2.41%
expense
s to
average
net
assets
after
expense
reductio
ns
Ratio of (.58) (.43) (.83) (.96) (.53) (.34) .52% (.20) (.33) (.59)
net % % % % %A % % % %
investm
ent
income
(loss) to
average
net
assets
Portfolio 148% 175% 178% 115% 116%A 423% 187% 156% 172% 255%
turnover
rate
Average $ .0313
commis
sion
rateL
</TABLE>
A ANNUALIZED
B FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
E FOR THE YEAR ENDED FEBRUARY 29
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
I INVESTMENT INCOME (LOSS) PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.05 PER SHARE.
J DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE
BEEN HIGHER.
K INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM ADVO, INC.
WHICH AMOUNTED TO $.07 PER SHARE.
L 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.
M THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES.
UTILITIES GROWTH
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Years 1997 1996B 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Selecte
d
Per-Sha
re Data
and
RatiosH
Net $ 43.03 $ 34.88 $ 36.61 $ 41.49 $ 37.18 $ 35.57 $ 31.70 $ 28.82 $ 24.67 $ 26.31
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .73 1.10 1.13 1.33 1.19 1.66 1.59 1.27 1.39 1.21
investm
ent
income
Net 6.41 7.86 (1.17) (.16) 6.14 2.82 3.41 2.40 4.18 (1.56)
realized
and
unrealiz
ed gain
(loss)
Total 7.14 8.96 (.04) 1.17 7.33 4.48 5.00 3.67 5.57 (.35)
from
investm
ent
operatio
ns
Less
Distribut
ions
From (.70) (.84) (1.05) (1.13) (1.33) (1.69) (.60) (.81) (1.42) (.45)
net
investm
ent
income
From (3.54) -- (.67) (4.94) (1.70) (1.19) (.58) -- -- (.84)
net
realized
gain
Total (4.24) (.84) (1.72) (6.07) (3.03) (2.88) (1.18) (.81) (1.42) (1.29)
distributi
ons
Redemp .04 .03 .03 .02 .01 .01 .05 .02 -- --
tion
fees
added
to paid
in
capital
Net $ 45.97 $ 43.03 $ 34.88 $ 36.61 $ 41.49 $ 37.18 $ 35.57 $ 31.70 $ 28.82 $ 24.67
asset
value,
end of
period
Total 18.13% 25.82% .21% 2.53% 20.90% 13.23% 16.25% 13.00% 23.39% (1.08)
returnF, %
G
Net $ 256,844 $ 266,768 $ 237,635 $ 250,522 $ 290,718 $ 206,872 $ 197,409 $ 124,931 $ 84,968 $ 85,008
assets,
end of
period
(000
omitted)
Ratio of 1.47% 1.39% 1.43% 1.36% 1.42%A 1.51% 1.65% 1.67% 1.21% 1.94%
expense
s to
average
net
assets
Ratio of 1.46%E 1.38%E 1.42%E 1.35%E 1.42%A 1.51% 1.65% 1.67% 1.21% 1.94%
expense
s to
average
net
assets
after
expense
reductio
ns
Ratio of 1.73% 2.76% 3.24% 3.11% 3.71%A 4.58% 4.75% 3.93% 5.33% 4.71%
net
investm
ent
income
to
average
net
assets
Portfolio 31% 65% 24% 61% 34%A 45% 45% 75% 75% 143%
turnover
rate
Average $ .0287
commis
sion
rateI
</TABLE>
MONEY MARKET
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Years 1997 1996B 1995 1994 1993C 1992D 1991D 1990D 1989D 1988D
ended
Februar
y 28
Selecte
d
Per-Sha
re Data
and
Ratios
Net $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
asset
value,
beginnin
g of
period
Income
from
Investm
ent
Operati
ons
Net .049 .054 .042 .026 .026 .048 .073 .081 .078 .062
interest
income
Less
Distribut
ions
From (.049) (.054) (.042) (.026) (.026) (.048) (.073) (.081) (.078) (.062)
net
interest
income
Net $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
asset
value,
end of
period
Total 5.02% 5.56% 4.28% 2.62% 2.63% 4.93% 7.50% 8.45% 8.07% 6.39%
returnF
Net $ 848,168 $ 610,821 $ 573,144 $ 518,657 $ 431,133 $ 542,620 $ 608,394 $ 643,272 $ 724,452 $ 1,008,010
assets,
end of
period
(000
omitted)
Ratio of .56% .59% .65% .72% .56% .64% .73% .83% .76% .88%
expense
s to
average
net
assets
Ratio of 4.92% 5.39% 4.19% 2.59% 3.09%A 4.84% 7.20% 8.13% 7.74% 6.22%
net
interest
income
to
average
net
assets
</TABLE>
A ANNUALIZED
B FOR THE YEAR ENDED FEBRUARY 29
C FOR THE TEN MONTHS ENDED FEBRUARY 28, 1993
D FOR THE YEAR ENDED APRIL 30
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.
F TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
G THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
H NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
I 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.
PERFORMANCE
Stock fund performance is commonly measured as TOTAL RETURN. Money market
fund performance can be measured as total return or yield. The total
returns that follow are based on historical fund results, do not reflect
the effect of taxes and would have been lower had certain expenses
not been reduced during the periods shown.
Each fund's fiscal year runs from March 1 th ro ugh February 28. The
tables below show each fund's performance over past fiscal years
compared to a comparative index for the stock funds and a measure of
inflation for the money market fund. The charts in Appendix A present
calendar year performance for the stock funds. Performance history will be
available for Cyclical Industries and Natural Resources after the funds
have been in operation for six months.
<TABLE>
<CAPTION>
<S> <C> <C>
Fiscal periods Average Annual Total Return s Cumulative Total Return s
ended February
28, 1997
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 Past 5 Past 10 Past 1 Past 5 Past 10
year years years/ Life year years years/
of fund Life of
fund
AIR -15.06 7.81% 7.47% -15.06 45.62 105.57
TRANSPORTATIO % % % %
N
AIR -17.61 7.15% 7.15% -17.61 41.25 99.40%
TRANSPORTATIO % % %
N (LOAD ADJ.A)
AMERICAN 6.10% 16.33 6.85% 6.10% 113.0 94.06%
GOLD % 6%
AMERICAN 2.91% 15.63 6.53% 2.91% 106.6 88.24%
GOLD (LOAD % 7%
ADJ.A)
AUTOMOTIVE 20.60 13.30 11.97% 20.60 86.68 209.85
% % % % %
AUTOMOTIVE 16.98 12.61 11.63% 16.98 81.08 200.55
(LOAD ADJ.A) % % % % %
BIOTECHNOLOG 5.85% 6.25% 14.07% 5.85% 35.42 273.14
Y % %
BIOTECHNOLOG 2.67% 5.61% 13.73% 2.67% 31.36 261.95
Y (LOAD ADJ.A) % %
BROKERAGE 44.27 19.85 10.35% 44.27 147.2 167.68
AND % % % 7% %
INVESTMENT
MANAGEMENT
BROKERAGE 39.94 19.12 10.01% 39.94 139.8 159.65
AND % % % 5% %
INVESTMENT
MANAGEMENT
(LOAD ADJ.A)
CHEMICALS 15.06 15.07 14.05% 15.06 101.7 272.42
% % % 3% %
CHEMICALS 11.61 14.37 13.71% 11.61 95.67 261.25
(LOAD ADJ.A) % % % % %
COMPUTERS 23.97 26.01 15.38% 23.97 217.7 318.23
% % % 1% %
COMPUTERS 20.25 25.25 15.03% 20.25 208.1 305.68
(LOAD ADJ.A) % % % 8% %
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
CONSTRUCTION 18.64 13.18 10.21% 18.64 85.69 164.41
AND HOUSING % % % % %
CONSTRUCTION 15.08 12.49 9.88% 15.08 80.12 156.47
AND HOUSING % % % % %
(LOAD ADJ.A)
CONSUMER 15.81 13.05 15.61%+ 15.81 84.68 163.43
INDUSTRIES % % % % %+
CONSUMER 12.33 12.37 15.09%+ 12.33 79.14 155.53%
INDUSTRIES % % % % +
(LOAD ADJ.A)
DEFENSE AND 15.87 18.86 8.17% 15.87 137.1 119.24
AEROSPACE % % % 9% %
DEFENSE AND 12.39 18.13 7.84% 12.39 130.0 112.67
AEROSPACE % % % 8% %
(LOAD ADJ.A)
S&P 500 26.16 16.94 14.16% 26.16 118.7 276.74
% % % 5% %
</TABLE>
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING A FUND'S 3% SALES
CHARGE.
<TABLE>
<CAPTION>
<S> <C> <C>
Fiscal periods Average Annual Total Returns Cumulative Total Returns
ended February
28, 1997
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 Past 5 Past 10 Past 1 Past 5 Past 10
year years years/ Life year years years/ Life
o f fund of fund
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
DEVELOPING 1.34% 15.84 19.17%+ 1.34% 108.5 222.52%
COMMUNICATI % 8% +
ONS
DEVELOPING -1.70 15.14 18.63%+ -1.70 102.3 212.84%
COMMUNICATI % % % 2% +
ONS (LOAD
ADJ.A)
ELECTRONICS 34.67 33.02 17.74% 34.67 316.5 411.79
% % % 2% %
ELECTRONICS 30.63 32.22 17.38% 30.63 304.0 396.44
(LOAD ADJ.A) % % % 2% %
ENERGY 20.35 12.71 9.04% 20.35 81.91 137.59
% % % % %
EN ERGY (LOAD 16.74 12.03 8.71% 16.74 76.46 130.46
ADJ.A) % % % % %
ENERGY 32.26 19.84 8.88% 32.26 147.2 134.15
SERVICE % % % 1% %
ENERGY 28.29 19.12 8.55% 28.29 139.8 127.12
SERVICE (LOAD % % % 0% %
ADJ.A)
ENVIRONMENTA 16.93 4.00% 6.73%+ 16.93 21.65 64.87%+
L SERVICES % % %
ENVIRONMENTA 13.42 3.37% 6.31%+ 13.42 18.00 59.92%+
L SERVICES % % %
(LOAD ADJ.A)
FINANCIAL 35.54 24.83 15.09% 35.54 203.0 307.71
SERVICES % % % 6% %
FINANCIAL 31.47 24.07 14.74% 31.47 193.9 295.48
SERVICES (LOAD % % % 7% %
ADJ.A)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
FOOD AND 13.59 15.79 16.68% 13.59 108.1 367.79
AGRICULTURE % % % 1% %
FOOD AND 10.18 15.08 16.33% 10.18 101.8 353.76
AGRICULTURE % % % 7% %
(LOAD ADJ.A)
HEALTH CARE 20.41 14.96 17.35% 20.41 100.8 395.25
% % % 3% %
HEALTH CARE 16.80 14.27 16.99% 16.80 94.80 380.39
(LOAD ADJ.A) % % % % %
HOME 47.50 33.10 20.49% 47.50 317.6 545.07
FINANCE % % % 9% %
HOME 43.07 32.29 20.13% 43.07 305.1 525.72
FINANCE (LOAD % % % 6% %
ADJ.A)
INDUSTRIAL 18.25 18.50 10.21% 18.25 133.6 164.26
EQUIPMENT % % % 6% %
INDUSTRIAL 14.70 17.78 9.87% 14.70 126.6 156.33
EQUIPMENT % % % 5% %
(LOAD ADJ.A)
INDUSTRIAL 12.69 12.65 8.93% 12.69 81.44 135.13
MATERIALS % % % % %
INDUSTRIAL 9.31% 11.97 8.59% 9.31% 76.00 128.08
MATERIALS % % %
(LOAD ADJ.A)
INSURANCE 28.28 17.96 13.24% 28.28 128.3 246.84
% % % 6% %
INSURANCE 24.43 17.24 12.90% 24.43 121.5 236.44
(LOAD ADJ.A) % % % 1% %
LEISURE 10.14 16.38 12.79% 10.14 113.4 233.16
% % % 9% %
LEISURE (LOAD 6.83% 15.67 12.45% 6.83% 107.0 223.17
ADJ.A) % 8% %
MEDICAL 10.50 12.38 17.67% 10.50 79.27 408.97
DELIVERY % % % % %
MEDICAL 7.19% 11.70 17.31% 7.19% 73.89 393.70
DELIVERY (LOAD % % %
ADJ.A)
MULTIMEDIA -4.52 16.39 14.22% -4.52 113.5 277.91
% % % 4% %
MULTIMEDIA -7.38 15.68 13.87% -7.38 107.1 266.57
(LOAD ADJ.A) % % % 4% %
S&P 500 26.16 16.94 14.16% 26.16 118.7 276.74
% % % 5% %
</TABLE>
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING A FUND'S 3% SALES
CHARGE.
<TABLE>
<CAPTION>
<S> <C> <C>
Fiscal periods Average Annual Total Returns Cumulative Total Returns
ended Febru ary
2 8, 1997
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Past 1 Past 5 Past 10 Past 1 Past 5 Past 10
year years years/ Life year years years/ Life
of fund of fund
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
NATURAL GAS 12.45 n/a 7.13%+ 12.45 n/a 30.49%+
% %
NATURAL GAS 9.07% n/a 6.29%+ 9.07% n/a 26.58%+
(LOAD ADJ.A)
PAPER AND 10.87 12.81 7.35% 10.87 82.69 103.28
FOREST % % % % %
PRODUCTS
PAPER AND 7.55% 12.12 7.03% 7.55% 77.21 97.18%
FOREST % %
PRODUCTS
(LOAD ADJ.A)
PRECIOUS -6.26 13.49 5.36% -6.26 88.29 68.58%
METALS AND % % % %
MINERALS
PRECIOUS -9.07 12.80 5.04% -9.07 82.64 63.53%
METALS AND % % % %
MINERALS (LOAD
ADJ.A)
REGIONAL 43.33 26.35 20.69% 43.33 222.0 555.53
BANKS % % % 2% %
REGIONAL 39.03 25.58 20.32% 39.03 212.3 535.86
BANKS (LOAD % % % 6% %
ADJ.A)
RETAILING 19.59 10.58 14.93% 19.59 65.38 302.10
% % % % %
RETAILING (LOAD 16.01 9.91% 14.58% 16.01 60.42 290.04
ADJ.A) % % % %
SOFTWARE AND 16.14 21.24 16.60% 16.14 162.0 364.43
COMPUTER % % % 0% %
SERVICES
SOFTWARE AND 12.66 20.51 16.24% 12.66 154.1 350.50
COMPUTER % % % 4% %
SERVICES (LOAD
ADJ.A)
TECHNOLOGY 12.64 20.54 13.61% 12.64 154.4 258.38
% % % 8% %
TECHNOLOGY 9.26% 19.81 13.27% 9.26% 146.8 247.63
(LOAD ADJ.A) % 4% %
TELECOMMUNI 7.85% 16.39 15.73% 7.85% 113.6 331.02
CATIONS % 0% %
TELECOMMUNI 4.61% 15.68 15.38% 4.61% 107.1 318.09
CATIONS (LOAD % 9% %
ADJ.A)
TRANSPORTATIO 4.67% 14.50 12.58% 4.67% 96.78 226.97
N % % %
TRANSPORTATIO 1.53% 13.80 12.23% 1.53% 90.88 217.16
N (LOAD ADJ.A) % % %
UTILITIES 18.13 13.42 11.97% 18.13 87.72 209.65
GROWTH % % % % %
UTILITIES 14.59 12.73 11.63% 14.59 82.09 200.36
GROWTH (LOAD % % % % %
ADJ.A)
S&P 500 26.16 16.94 14.16% 26.16 118.7 276.74
% % % 5% %
MONEY MARKET 5.02% 4.15% 5.61% 5.02% 22.53 72.59%
%
MONEY MARKET 1.87% 3.51% 5.29% 1.87% 18.85 67.41%
(LOAD ADJ.A) %
Consumer 3.03% 2.86% 3.64% 3.03% 15.15 43.01%
Price Index %
</TABLE>
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING A FUND'S 3% SALES
CHARGE.
+ LIFE OF FUND FIGURES ARE FROM COMMENCEMENT OF OPERATIONS (JUNE 29, 1990
FOR CONSUMER INDUSTRIES AND DEVELOPING COMMUNICATIONS; JUNE 29, 1989 FOR
ENVIRONMENTAL SERVICES; AND APRIL 21, 1993 FOR NATURAL GAS) THROUGH THE
FISCAL PERIODS ENDED FEBRUARY 28, 1997.
EXPLANATION OF TERMS
TOTAL RETURN is the change i n val ue of an investment over a given
period, assuming reinvestment of any dividends and capital gains. A
CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of
time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that,
if achieved annually, would have produced the same cumulative total return
if performance had been constant over the entire period. Average annual
total returns smooth out variations in performance; they are not the same
as actual year-by-year results.
YIELD, for the money market fund, refers to the income generated by an
investment in the fund over a given period of time, expressed as an annual
percentage rate. When a yield assumes that income earned is reinvested, it
is called an EFFECTIVE YIELD.
STANDARD & POOR'S 500 INDEX (S&P 500(registered trademark)) is a
widely recognized, unmanaged index of common stocks.
Unlike each fund's returns, the total returns of the comparative index do
not include the effect of any brokerage commissions, transaction fees, or
other costs of investing.
THE CONSUMER PRICE INDEX is a widely recognized measure of inflation
calculated by the U.S. Government.
Other illustrations of fund performance may show moving average over
specified periods.
The funds' recent strategies, performance, and holdings are detailed twice
a year in financial reports, which are sent to all shareholders. For
current performance or a free annual report, call 1-800-544-8888.
TOTAL RETURNS AND YIELDS ARE BASED ON PAST RESULTS AND ARE NOT AN
INDICATION OF FUTURE PERFORMANCE.
THE FUNDS IN DETAIL
CHARTER
EACH FUND IS A MUTUAL FUND: an investment that pools shareholders' money
and invests it toward a specified goal. The money market fund and
Financial Services, Home Finance and Regional Banks Portfolios are
diversified funds, and each of the other stock funds is a non-diversified
fund, of Fidelity Select Portfolios, an open-end management investment
company organized as a Massachusetts business trust on November 20,
1980.
EACH FUND IS GOVERNED BY A BOARD OF TRUSTEES, which is responsible for
protecting the interests of shareholders. The trustees are experienced
executives who meet throughout the year to oversee the funds' activities,
review contractual arrangements with companies that provide services to the
funds, a nd review the funds' performance. The majority of trustees
are not otherwise affiliated with Fidelity.
THE FUNDS MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These
meetings may be called to elect or remove trustees, change fundamental
policies, approve a management contract, or for other purposes.
Shareholders not attending these meetings are encouraged to vote by proxy.
Fidelity will mail proxy materials in advance, including a voting card and
information about the proposals to be voted on. The number of votes you are
entitled to is based on the dollar value of your investment.
FMR AND ITS AFFILIATES
The funds are managed by FMR, which handles their business affairs and
chooses the stock funds' investments. Fidelity Management & Research (U.K.)
Inc. (FMR U.K.), in London, England, and Fidelity Management & Research
(Far East) Inc. (FMR Far East), in Tokyo, Japan, assist FMR with foreign
investments for the stock funds (except American Gold) . FMR Texas,
located in Irving, Texas, has primary responsibility for providing
investment management services for the money market fund.
Paul Antico is manager of Leisure and Consumer Industries, both of which
he has managed since January 1997. He also manages another Fidelity fund.
Since joining Fidelity in 1991, Mr. Antico has worked as an analyst and
manager.
Tom Allen is manager of Insurance, which he has managed since February
1997. Mr. Allen joined Fidelity as an analyst in 1995, after receiving his
MBA from Harvard Business School. Previously, he worked as a summer intern
at Massachusetts Financial Services in 1994. Before that, he was with Price
Waterhouse LLP, from 1987 to 1993, finishing as an audit manager.
Ramin Arani is manager of Retailing, which he has managed since January
1997. Previously, he was an analyst. Mr. Arani joined Fidelity as a
research associate in 1992, after receiving a bachelor of arts degree from
Tufts University.
John Avery is manager of Chemicals and Regional Banks, which he has managed
since July 1995 and September 1996, respectively. Mr. Avery joined Fidelity
as an analyst in 1995. Previously, he was an analyst for Putnam Investments
from 1993 to 1994. He earned his MBA from The Wharton School at the
University of Pennsylvania in 1993.
Jean-Marc Berteaux is manager of Transportation, which he has managed since
January 1997. Mr. Berteaux joined Fidelity as an analyst in 1994, after
receiving his MBA from the European Institute of Business Administration
(INSEAD) in France. Previously, he was an assistant vice president for the
Banque National de Paris in Montreal from 1992 to 1993.
Stephen Binder is manager of Natural Gas, which he has managed since
November 1996. Previously, he managed other Fidelity funds. Since joining
Fidelity in 1989 he has worked as an analyst and manager.
Minerva Butler is manager of Industrial Equipment, which she has managed
since February 1997. Previously, she managed other Fidelity funds. Ms.
Butler joined Fidelity in 1995 as an analyst, after earning her MBA from
Stanford University. Before that, she was an internal audit supervisor for
US West, Inc., from 1989 to 1992.
Douglas Chase is manager of Industrial Materials and Automotive, which he
has managed since November 1994 and May 1996, respectively. Mr. Chase
joined Fidelity as an analyst in 1993, after receiving his MBA from the
University of Michigan.
George Domolky is manager of Precious Metals and Minerals and American
Gold, both of which he has managed since February 1997. Previously, he
managed Canada from 1987 to 1996 as well as another Fidelity fund. Mr.
Domolky joined Fidelity in 1981.
Robert Ewing is manager of Environmental Services and Energy Service, which
he has managed since January 1996 and November 1996, respectively. Since
joining Fidelity in 1990, Mr. Ewing has worked as an analyst and manager.
Karen Firestone is manager of Biotechnology and Health Care, which she has
managed since July 1992 and February 1995, respectively. She also manages
another Fidelity fund. Since joining Fidelity in 1983, Ms. Firestone has
worked as an analyst and manager.
Peter Fruzzetti is manager of Brokerage and Investment Management, which he
has managed since February 1997. Previously, he worked as an analyst. Mr.
Fruzzetti joined Fidelity as a research associate in 1993, after receiving
a bachelor of science degree in finance from Boston College.
Adam Hetnarski is manager of Technology, which he has managed since March
1996. He also manages another Fidelity fund. Since joining Fidelity in
1991, Mr. Hetnarski has worked as an analyst and manager.
Andy Kaplan is manager of Electronics, which he has managed since August
1996. Mr. Kaplan joined Fidelity as an analyst in 1995. Previously, he was
an analyst with T. Rowe Price in 1994, and an associate director of
consulting for Edward S. Gordon Company in New York City from 1988 through
1993.
John Muresianu is manager of Utilities Growth, which he has managed since
December 1992. He also manages other Fidelity funds. Since joining Fidelity
in 1986, Mr. Muresianu has worked as an analyst and manager.
Scott Offen is manager of Food and Agriculture, which he has managed since
November 1996. Previously, he managed other Fidelity funds. Since joining
Fidelity in 1985, Mr. Offen has worked as an analyst and manager.
John Porter is manager of Multimedia, which he has managed since February
1996. Mr. Porter joined Fidelity as an analyst in 1995, after receiving his
MBA from the University of Chicago. Previously, Mr. Porter was a product
engineer for Ford Motor Company from 1991 to 1993.
Lawrence Rakers is manager of Paper and Forest Products, Energy and Natural
Resources which he has managed since February 1996, January 1997 and March
1997, respectively. He also manages another Fidelity fund. Mr. Rakers
joined Fidelity as an analyst in 1993. Previously, he was a project
engineer for Loral Corporation from 1986 to 1993.
Kevin Richardson is manager of Air Transportation and Defense and
Aerospace, which he has managed since May 1996 and January 1997,
respectively. Mr. Richardson joined Fidelity as an analyst in 1994, after
receiving his MBA from the University of North Carolina at Chapel Hill.
Previously, he was an equity analyst with Kidder, Peabody & Company from
1991 to 1992.
Nick Romano is manager of Developing Communications, which he has managed
since February 1997. Mr. Romano joined Fidelity as an analyst in 1995,
after receiving his MBA from the Stern School of Business at New York
University. Previously, he worked with Bank of New York from 1990 to 1995,
finishing as a credit analyst.
Albert Ruback is manager of Cyclical Industries, which he has managed since
inception. He also manages another Fidelity fund. Mr. Ruback joined
Fidelity as an analyst in 1991, after receiving his MBA from Harvard
Business School.
Bill Rubin is manager of Home Finance, which he has managed since October
1996. Previously, he managed another Fidelity fund. Mr. Rubin joined
Fidelity as an analyst in 1994, after receiving his MBA from Harvard
Business School. He was a corporate financial analyst for VLSI Technologies
from 1990 to 1992.
Louis Salemy is manager of Financial Services, which he has managed since
December 1994. He also manages other Fidelity funds. Mr. Salemy joined
Fidelity as a research analyst in 1992. Previously, he was a security
analyst for Loomis, Sayles and Company from 1989-1992.
Peter Saperstone is manager of Construction and Housing, which he has
managed since August 1996. Previously, he was an equity analyst. Prior to
joining Fidelity in 1995, Mr. Saperstone was an equity research analyst at
Gabelli & Company, Inc., from 1993 to 1995, and a credit analyst at
National Westminster Bank USA from 1991 to 1993.
Erin Sullivan is manager of Software and Computer Services, which she has
managed since January 1997. She also manages another Fidelity fund. Ms.
Sullivan joined Fidelity as a research associate in 1991, after receiving a
bachelor of arts degree from Harvard University. Since then, she has worked
as an analyst, manager and sector leader.
Michael Tempero is manager of Computers, which he has managed since January
1997. Previously, he managed other Fidelity funds. Mr. Tempero joined
Fidelity as an analyst in 1993, after receiving his MBA from the University
of Chicago. Mr. Tempero also earned a master of science degree in economics
from the London School of Economics in 1992.
Nick Thakore is manager of Telecommunications, which he has managed since
July 1996. Mr. Thakore joined Fidelity as an analyst in 1993, after earning
his MBA from The Wharton School at the University of Pennsylvania.
Previously, he was a real estate analyst for Prudential Properties Company
from 1989 to 1991.
Deborah Wheeler is manager of Medical Delivery which she has managed since
November 1996. Previously, she managed other Fidelity funds. Since joining
Fidelity in 1986, Ms. Wheeler has worked as an analyst and manager.
Fidelity investment personnel may invest in securities for their own
account pursuant to a code of ethics that establishes procedures for
personal investing and restricts certain transactions.
Fidelity Distributors Corporation (FDC) distributes and markets
Fidelity's funds and services. Fidelity Service Company, Inc. (FSC)
performs transfer agent servicing functions for each fund.
FMR Corp. is the ultimate parent company of FMR, F MR Texas , FMR
U.K., and FMR Far East. Members of the Edward C. Johnson 3d family are the
predominant owners of a class of shares of common stock representing
approximately 49% of the voting power of FMR Corp. Under the Investment
Company Act of 1940 (the 1940 Act), control of a company is presumed where
one individual or group of individuals owns more than 25% of the voting
stock of that company; therefore, the Johnson family may be deemed under
the 1940 Act to form a controlling group with respect to FMR Corp.
A broker-dealer may use a portion of the commissions paid by a fund to
reduce custodian or transfer agent fees for that f und. FMR may use its
broker-dealer affiliates and other firms that sell fund shares to carry out
a fund's transactions, provided that the fund receives brokerage services
and commission rates comparable to those of other broker-dealers.
INVESTMENT PRINCIPLES AND RISKS
EACH FUND'S INVESTMENT APPROACH
Each stock fund seeks capital appreciation by concentrating its investments
in the securities of companies in a particular industry or group of
industries . Under normal conditions, each fund will invest at least 80%
of its assets in securities of companies principally engaged in the
business activities of its named industry or group of industries .
For this purpose American Gold, Natural Resources, and Precious Metals
and Minerals treat investments in precious metals and instruments whose
value is linked to the price of precious metals, as investments in their
named industries. The stock funds will invest primarily in
equity securities, although they may invest in other types of instruments
as well.
A n issuer is considered to be principally engaged in a business
activity if at least 50% of its assets, gross income, or net profits are
committed to, or derived from, that activity. For Brokerage and Investment
Management and Financial Services, an issuer that derives more than 15%
of revenues or profits from brokerage or investment management
activities is considered to be principally engaged in the business
activities identified for those funds . It is important to note that in
many cases, the focus of one stock fund differs only slightly from another,
so they may invest in many of the same securities.
The stock funds may involve significantly greater risks and therefore may
experience greater volatility than a mutual fund that does not
concentrate its investments. Because of their narrow focus, each fund's
performance is closely tied to and affected by, i ts industry or group of
industries . Companies in an industry are often faced with the same
obstacles, issues, or regulatory burdens, and their securities may react
similarly to and move in unison with these or other market
conditions. This is especially true for funds with a particularly narrow
industry focus. Also because the funds (except Financial Services, Home
Finance, and Regional Banks) are non-diversified, they are further exposed
to increased volatility. Non-diversified funds may have greater investments
in a single issuer than diversified funds, so the performance of a single
issuer can have a substantial impact on a fund's share price. Finally, the
funds' strategies in seeking to achieve their investment objectives may
lead to investments in smaller companies. Securities of smaller companies,
especially those whose business involves emerging products or concepts, may
be more volatile due to their limited product lines, markets, or financial
resources; or their susceptibility to major setbacks or downturns.
The value of the funds' domestic and foreign investments varies in response
to many factors. Stock values fluctuate in response to the activities of
individual companies, and general market and economic conditions.
Investments in foreign securities may involve risks in addition to those of
U.S. investments, including increased political and economic risk, as well
as exposure to currency fluctuations.
FMR may use various investment techniques to hedge a portion of the funds'
risks, but there is no guarantee that these strategies will work as FMR
intends. Of course, when you sell your shares of a stock fund, they may be
worth more or less than what you paid for them.
FMR normally invests each fund's assets according to its investment
strategy. When FMR considers it appropriate for defensive purposes, each
stock fund may temporarily invest substantially in investment-grade debt
securities.
AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the
regional, national, and international movement of passengers, mail, and
freight via aircraft. These companies may include, for example,
airlines, air cargo and express delivery operators, airfreight
forwarders, and companies that provide equipment or services to these
companies , such as aviation service firms and manufacturers of
aeronautical equipment .
The profitability of air transportation companies is
substantially influenced by competition within the industry, domestic and
foreign economies and government regulation, and the price of fuel.
Additionally, the industry is still feeling the effects of deregulation.
AMERICAN GOLD PORTFOLIO invests primarily in companies engaged in
exploration, mining, processing, or dealing in gold, or, to a lesser
degree, in silver, platinum, diamonds, or other precious metals and
minerals. The fund focuses on North, Central, and South American companies
engaged in gold-related activities. This focus may also include gold
bullion or coins and securities indexed to the price of gold as well as, to
a lesser degree, other precious metals in the form of bullion, coins, or
securities indexed to the price of precious metals. The fund may also
invest in companies that manufacture and distribute precious metals and
minerals products (such as jewelry, watches, and metal foils and leaf) and
companies that invest in other companies engaged in gold-related
activities.
The price of gold and other precious metal mining securities can face
substantial short-term volatility caused by international monetary and
political developments such as currency devaluations or revaluations,
economic and social conditions within a country, or trade restrictions
between countries. Since much of the world's gold reserves are located in
South Africa, the social and economic conditions there can affect gold and
gold-related companies located elsewhere. The price of gold bullion or
coins is closely tied to broad economic and political conditions.
The fund is authorized to invest up to 50% of its total assets in
precious metals and securities indexed to the price of gold and other
precious metals. FMR does not currently intend to purchase precious
metals if, as a result, more than 25% of the fund's total assets would be
invested in precious metals and securities indexed to the price of precious
metals. Under current federal tax law, gains from selling precious metals
may not exceed 10% of the fund's annual gross income. This tax requirement
could cause the fund to hold or sell bullion or securities when it would
not otherwise do so.
AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the
manufacture, marketing, or sale of automobiles, trucks, specialty vehicles,
parts, tires, and related services. These companies may include, for
example, companies involved with the manufacture and distribution of
vehicles, vehicle parts and tires (either original equipment or for the
aftermarket) and companies involved in the retail sale of vehicles, parts
or tires. In addition, the fund may invest in companies that provide
automotive-related services to manufacturers, distributors or
consumers.
The automotive industry is highly cyclical and companies in the industry
may suffer periodic operating losses. While most of the major manufacturers
are large, financially strong companies, some are smaller manufacturers
that have a non-diversified product line or customer base.
BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the
research, development, and manufacture of various biotechnological
products, services, and processes. These companies may include, for
example, companies involved with new or experimental technologies such as
genetic engineering , hybridoma and recombinant DNA techniques and
monoclonal antibodies. The fund may also invest in companies that
manufacture and/or distribute biotechnological and biomedical products,
including devices and instruments, and in companies that provide or benefit
significantly from scientific and technological advances in biotechnology.
Some biotechnology companies may provide processes or services instead of,
or in addition to, products.
The description of the biotechnology sector will be interpreted broadly by
FMR, and may include applications and developments in such areas as human
health care (e.g., cancer, infectious disease, diagnostics and
therapeutics); pharmaceuticals (e.g., new drug development and production);
agricultural and veterinary applications (e.g., improved seed varieties,
animal growth hormones); chemicals (e.g., enzymes, toxic waste treatment);
medical/surgical (e.g., epidermal growth factor, in vivo
imaging/therapeutics); and industry (e.g., biochips, fermentation, enhanced
mineral recovery).
Biotechnology companies are affected by patent considerations, intense
competition, rapid technological change and obsolescence, and regulatory
requirements. In addition, many of these companies may not yet offer
products and may have persistent losses or erratic revenue patterns.
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO invests primarily in
companies engaged in stock brokerage, commodity brokerage, investment
banking, tax-advantaged investment or investment sales, investment
management, or related investment advisory services. The fund does not
invest in securities of FMR or its affiliated companies. Under SEC
regulations the fund may not invest more than 5% of its total assets in the
equity securities of any company that derives more than 15% of its revenues
from brokerage or investment management activities.
Legislation is currently being considered which would reduce the separation
between commercial and investment banking businesses. If enacted this could
significantly impact the industry and the fund.
Changes in regulations, brokerage commission structure, stock and bond
market activity, and the competitive environment, combined with the
operating leverage inherent in companies in these industries, can produce
erratic returns over time.
CHEMICALS PORTFOLIO invests primarily in companies engaged in the research,
development, manufacture, or marketing of products or services related to
the chemical process industries. These products may include, for example,
synthetic and natural materials, such as basic and intermediate organic
and inorganic chemicals, plastics, synthetic fibers, fertilizers,
industrial gases, flavorings, fragrances, biological materials, catalysts,
carriers, additives, and process aids . The fund may also invest
in companies providing design, engineering, construction, and
consulting services to companies engaged in chemical processing.
Companies in the chemical processing industries are subject to
intense competition, product obsolescence, and significant governmental
regulation. As regulations are developed and enforced, such companies may
be required to alter or cease production of a product, to pay fines, or to
pay for cleaning up a disposal site. In addition, chemical companies face
unique risks associated with handling hazardous products.
COMPUTERS PORTFOLIO invests primarily in companies engaged in research,
design, development, manufacture, or distribution of products, processes,
or services that relate to currently available or experimental hardware
technology within the computer industry. The fund may invest in companies
that provide products or services such as computer and office equipment
wholesalers, software retailers, data processors, robotics, and
designers of artificial intelligence.
Competitive pressures and changing domestic and international demand may
have a significant effect on the financial condition of companies in the
computer industry. Companies in the computer industry spend heavily
on research and development and are sensitive to the risk of product
obsolescence.
CONSTRUCTION AND HOUSING PORTFOLIO invests primarily in companies engaged
in the design and construction of residential, commercial, industrial, and
public works facilities, as well as companies engaged in the manufacture,
supply, distribution, or sale of products or services to these construction
industries. Examples of companies engaged in these activities include
companies that produce basic building materials such as cement,
aggregates, gypsum, timber, and wall and floor coverings; that supply
home furnishings ; and that provide engineering or contracting
services. The fund also may invest in companies involved in real estate
development and construction financing such as homebuilders, architectural
and design firms, and property managers, and in companies involved in the
home improvement and maintenance industry , including building material
retailers and distributors, household service firms, and those companies
that supply such companies .
Companies in these industries may be affected by a variety of
factors such as government spending on housing subsidies, public works, and
transportation facilities, as well as changes in interest rates, consumer
confidence and spending, taxation, demographic patterns, the level of new
and existing home sales, and other economic activity.
CONSUMER IND USTR IES PORTFOLIO invests primarily in companies engaged
in the manufacture and distribution of goods to consumers both domestically
and internationally. These companies may include, for example,
companies that manufacture or sell durable goods such as homes, cars,
boats, major appliances, and personal computers. The fund also may
invest in companies that manufacture, wholesale, or retail non-durable
goods such as food, beverages, tobacco, health care products, household and
personal care products, apparel, and entertainment products (e.g., books,
magazines, TV, cable, movies, music, gaming, sports). In addition, the fund
may invest in companies that provide consumer products and services such as
lodging, child care, convenience stores, and car rentals.
The success of consumer product manufacturers and retailers is closely tied
to the performance of the overall economy, interest rates, competition, and
consumer confidence. Success depends heavily on disposable household income
and consumer spending. Changes in demographics and consumer tastes can also
affect the demand for, and success of, consumer products in the
marketplace.
CYCLICAL INDUSTRIES PORTFOLIO invests primarily in companies engaged in
the research, development, manufacture, distribution, supply, or sale of
materials, equipment, products or services related to cyclical industries.
These may include the automotive, chemical, construction and housing,
defense and aerospace, environmental services, industrial equipment and
materials, paper and forest products, and transportation industries.
Many companies in these industries are significantly affected by general
economic trends including employment, economic growth, and interest rates.
Other factors that may affect these industries are changes in consumer
sentiment and spending, commodity prices, legislation, government
regulation and spending, import controls, and worldwide competition. At
times, worldwide production of the materials used in cyclical industries
has exceeded demand as a result of, for example, over-building or economic
downturns. During these times, commodity price declines and unit volume
reductions resulted in poor investment returns and losses. Furthermore, a
company in the cyclical industries may be subject to liability for
environmental damage, depletion of resources, and mandated expenditures for
safety and pollution control.
DEFENSE AND AEROSPACE PORTFOLIO invests primarily in companies engaged in
the research, manufacture, or sale of products or services related to the
defense or aerospace industries. For example, the fund may invest in
companies that provide the following products or services: air
transport; defense electronics ; aircraft or spacecraft
production ; missile design ; data processing or
computer-related services ; communications systems; research; development
and manufacture of military weapons and transportation; general aviation
equipment, missiles, space launch vehicles, and spacecraft; units for
guidance, propulsion, and control of flight vehicles; and equipment
components and airborne and ground-based equipment essential to the
testing, operation, and maintenance of flight vehicles.
The financial condition of companies in the industr ies and investor
interest in these companies are heavily influenced by government defense
and aerospace spending policies. Defense spending is currently under
pressure from efforts to control the U.S. budget deficit.
DEVELOPING COMMUNICATIONS PORTFOLIO invests primarily in companies engaged
in the development, manufacture, or sale of emerging communications
services or equipment. Emerging communications are those which derive from
new technologies or new applications of existing technologies. For
example, the fund may invest in companies involved in cellular
communications, software development, video conferencing, or data
processing. The fund places less emphasis on traditional communications
companies such as large long distance carriers.
Products or services provided by this industry may be in the development
stage and can face risks such as failure to obtain financing or regulatory
approval, intense competition, product incompatibility, consumer
preferences, and rapid obsolescence.
ELECTRONICS PORTFOLIO invests primarily in companies engaged in the design,
manufacture, or sale of electronic components (semiconductors, connectors,
printed circuit boards, and other components); equipment vendors to
electronic component manufacturers; electronic component distributors; and
electronic instruments and electronic systems vendors. This may include
companies involved in all aspects of the electronics business and in
new technologies or specialty areas such as defense electronics, advanced
design and manufacturing technologies, or lasers.
Many of the products offered by companies engaged in the design,
production, or distribution of electronic products are subject to risks of
rapid obsolescence and intense competition.
ENERGY PORTFOLIO invests primarily in companies in the energy field,
including the conventional areas of oil, gas, electricity, and coal, and
newer sources of energy such as nuclear, geothermal, oil shale, and solar
power. F or example, the fund may invest in companies that
produce, transmit, market, distribute or measure energy ;
companies involved in providing products and services to companies in
the energy field; and companies involved in the exploration of new
sources of energy , conservation, and energy-related pollution
control .
Securities of companies in the energy field are subject to changes in value
and dividend yield which depend largely on the price and supply of energy
fuels. Swift price and supply fluctuations may be caused by events relating
to international politics, energy conservation, the success of exploration
projects, and tax and other governmental regulatory policies.
ENERGY SERVICE PORTFOLIO invests primarily in companies in the energy
service field, including those that provide services and equipment to the
conventional areas of oil, gas, electricity, and coal, and newer sources of
energy such as nuclear, geothermal, oil shale, and solar power. For
example, the fund may invest in companies providing services such as
onshore or offshore drilling; companies involved in production and well
main tenance; companies involved in exploration engineering, data and
technology; companies involved in energy transport; and companies involved
in equipment and plant design or construction. In addition, the fund may
invest in companies that provide products and services to these
companies.
Energy service firms are affected by supply and demand both for their
specific product or service and for energy products in general. The price
of oil and gas, exploration and production spending, governmental
regulation, world events and economic conditions will likewise affect the
performance of these companies.
ENVIRONMENTAL SERVICES PORTFOLIO invests primarily in companies engaged in
the research, development, manufacture, or distribution of products,
processes, or services related to waste management or pollution control.
Such products, processes or services may include the transportation,
treatment and disposal of both hazardous and solid wastes, including
waste-to-energy and recycling; remedial project efforts, including
groundwater and underground storage tank decontamination, asbestos cleanup
and emergency cleanup response; and the detection, analysis, evaluation,
and treatment of both existing and potential environmental problems
including, among others, contaminated water, air pollution, and acid rain.
The fund may also invest in companies that provide design, engineering,
construction, and consulting services to companies engaged in waste
management or pollution control.
Securities of companies in the environmental services field can be
impacted by legislation, government regulations, and enforcement policies.
As regulations are developed and enforced, companies may be required to
alter or cease production of a product or service. In addition, hazardous
materials may be involved, and companies can face significant liability
risk.
FINANCIAL SERVICES PORTFOLIO invests primarily in companies that provide
financial services to consumers and industry. Examples of companies in the
financial services sector include commercial banks, savings and loan
associations, brokerage companies, insurance companies, real estate and
leasing companies, and companies that span across these segments. Under SEC
regulations, the fund may not invest more than 5% of its total assets in
the equity securities of any company that derives more than 15% of its
revenues from brokerage or investment management activities.
Financial services companies are subject to extensive governmental
regulation which may limit both the amounts and types of loans and other
financial commitments they can make, and the interest rates and fees they
can charge. Profitability is largely dependent on the availability and cost
of capital funds, and can fluctuate significantly when interest rates
change. Credit losses resulting from financial difficulties of borrowers
can negatively impact the sector . Insurance companies may be subject
to severe price competition. Legislation is currently being considered
which would reduce the separation between commercial and investment banking
businesses. If enacted this could significantly impact the sector
and the fund.
FOOD AND AGRICULTURE PORTFOLIO invests primarily in companies engaged in
the manufacture, sale, or distribution of food and beverage products,
agricultural products, and products related to the development of new food
technologies. F or example, the fund may invest in companies
that sell products and services such as meat and poultry processors,
grocery stores , and restaurants; companies that manufacture and
distribute products such as soft drinks , pet foods, wood products,
tobacco, and agricultural machinery ; and companies engaged in the
development of new technologies such as improved hybrid seeds.
The food and agriculture field is impacted by supply and demand,
which may be affected by demographic and product trends, food fads,
marketing campaigns, and environmental factors. In the U nited
S tates , the agricultural products industry is subject to
regulation by numerous government agencies.
HEALTH CARE PORTFOLIO invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection with
health care or medicine. Companies in the health care sector may
include, for example, pharmaceutical companies, companies involved in
research and development, companies involved in the operation of health
care facilities, and other companies involved in the design, manufacture,
or sale of health care- related products or services.
Many of these companies are subject to government regulation and approval
of their products and services, which could have a significant effect on
their price and availability. Furthermore, the types of products or
services produced or provided by these companies may quickly become
obsolete.
HOME FINANCE PORTFOLIO invests primarily in companies engaged in investing
in real estate, usually through mortgages and other consumer-related loans.
These companies may also offer discount brokerage services, insurance
products, leasing services, and joint venture financing. F or
example, the fund may invest in mortgage banking companies, real
estate investment trusts, banks, and other depository institutions.
The residential real estate finance industry has changed rapidly over the
last decade and is expected to continue to change. Regulatory changes at
federally insured institutions, in response to a high failure rate, have
mandated higher capital ratios and more prudent underwriting. This reduced
capacity has created growth opportunities for uninsured companies and
secondary market products to fill unmet demand for home finance. Regulatory
changes, interest rate movements, home mortgage demand, and residential
delinquency trends will affect the industry.
INDUSTRIAL EQUIPMENT PORTFOLIO invests primarily in companies engaged in
the manufacture, distribution, or service of products and equipment for the
industrial sector, including integrated producers of capital equipment
(such as general industrial machinery, farm equipment, and computers),
parts suppliers, and subcontractors. F or example, the fund may
invest in companies that provide service establishment, railroad, textile,
farming, mining, oilfield, semiconductor, and telecommunications equipment;
companies that manufacture products or service equipment for trucks,
construction, transportation or machine tools ; cable equipment
companies; and office automation companies .
The success of equipment manufacturing and distribution companies is
closely tied to overall capital spending levels, which are
influenced by an individual company's profitability and broader
factors such as interest rates and foreign competition. The
industrial sector may also be affected by economic cycles, technical
progress, labor relations, and government regulations.
INDUSTRIAL MATERIALS PORTFOLIO invests primarily in companies engaged in
the manufacture, mining, processing, or distribution of raw materials and
intermediate goods used in the industrial sector. These materials and goods
may include, for example, chemicals, metals, textiles, and wood
products. The fund may also invest in mining, processing,
transportation, and distribution companies, including equipment suppliers
and railroads.
Many companies in the industrial sector are significantly affected
by the level and volatility of commodity prices, the exchange value of the
dollar, import controls, and worldwide competition. At times, worldwide
production of industrial materials has exceeded demand as a result
of over-building or economic downturns, leading to poor investment returns
or losses. Other risks may include liability for environmental damage,
depletion of resources, and mandated expenditures for safety and pollution
control.
INSURANCE PORTFOLIO invests primarily in companies engaged in underwriting,
reinsuring, selling, distributing, or placing of property and casualty,
life, or health insurance. For example, the fund may invest in
companies that provide a specific type of insurance, such as life or
health insurance, those that offer a variety of insurance products ,
and those that provide insurance services such as brokers and claims
processors.
Insurance company profits are affected by interest rate levels, general
economic conditions, and price and marketing competition. Certain types of
insurance may be impacted by events or trends such as natural catastrophes,
mortality rates, or recessions. Companies may be exposed to material risks
including a shortage of cash reserves and the inability to collect
from reinsurance carriers. Also, insurance companies are subject to
extensive governmental regulation, and can be adversely affected by
proposed or potential tax law changes.
LEISURE PORTFOLIO invests primarily in companies engaged in the design,
production, or distribution of goods or services in the leisure industries.
The fund may invest in companies that provide goods or services
such as television and radio broadcast or manufacture (including cable
television); motion pictures and photography; recordings and musical
instruments; publishing, including newspapers and magazines; sporting goods
and camping and recreational equipment; and sports arenas. Other goods and
services may include toys and games (including video and other electronic
games), amusement and theme parks, travel and travel-related services,
hotels and motels, leisure apparel or footwear, fast food, beverages,
restaurants, tobacco products and gaming casinos.
Securities of companies in the leisure industr ies may be considered
speculative and generally exhibit greater volatility than the overall
market. Many companies have unpredictable earnings, due in part to changing
consumer tastes and intense competition. The industries have reacted
strongly to technological developments and to the threat of government
regulation.
MEDICAL DELIVERY PORTFOLIO invests primarily in companies engaged in the
ownership or management of hospitals, nursing homes, health maintenance
organizations, and other companies specializing in the delivery of health
care services. F or example, the fund may invest in companies
that operate acute care, psychiatric, teaching, or specialized treatment
hospitals, as well as home health care providers, medical equipment
suppliers, and companies that provide related services.
Federal and state governments provide a substantial percentage of revenues
to health care service providers via Medicare and Medicaid. These sources
are subject to extensive governmental regulation , and appropriations
are a continued source of debate. The administration is currently examining
the health care industry to determine whether government funds are spent
appropriately and to ensure that adequate health care is available to
everyone.
The demand for health care services should increase as the population ages.
However, studies have shown the ability of health care providers to curtail
unnecessary hospital stays and reduce costs. These changes could alter the
health care industry, focusing it more on home care and placing less
emphasis on inpatient revenues as a source of profit.
MULTIMEDIA PORTFOLIO invests primarily in companies engaged in the
development, production, sale, and distribution of goods or services used
in the broadcast and media industries. The fund may invest in
advertising companies; broadcasting companies; theaters; film
studios ; publishing, printing, cable television and video
companies and equipment providers ; companies involved in emerging
technologies such as cellular communications ; and other companies
involved in the ownership, operation, or development of media products or
services.
Some of the companies in the broadcast and media industries are
undergoing significant change because of federal deregulation of cable and
broadcasting. As a result, competitive pressures are intense and the
securities of these companies are subject to increased price
volatility. FMR abides by Federal Communications Commission rules governing
the concentration of investment in AM, FM, or TV stations, limiting
investment alternatives.
NATURAL GAS PORTFOLIO invests primarily in companies engaged in the
production, transmission, and distribution of natural gas, and involved in
the exploration of potential natural gas sources, as well as those
companies that provide services and equipment to natural gas producers,
refineries, cogeneration facilities, converters, and distributors. These
companies may include, for example, companies participating in gas
research, exploration, or refining, companies working toward technological
advances in the natural gas field , and other companies providing
products or services to the field .
The companies in the natural gas field are subject to changes in
price and supply of both conventional and alternative energy sources. Swift
price and supply fluctuations may be caused by events relating to
international politics, energy conservation, the success of energy source
exploration projects, and tax and other regulatory policies of domestic and
foreign governments.
NATURAL RESOURCES PORTFOLIO invests primarily in companies that own
or develop natur al resources, or supply goods and services to such
co mpanies. T hese may include companies involved either direct ly
or thro ugh subsidiaries in exploring, mining, refining, proce ssing,
tra nsporting, fabricating, dealing in, or owning natural re sources.
N atural resources include precious metals (e.g., gold, plati num,
and silver), ferrous and nonferrous metals (e.g., ir on, alu minum,
and copper), strategic metals (e.g., urani um and titani um),
hydrocarbons (e.g., coal, oil, and natural g ases), che micals, forest
products, real estate, food , textile and tobacco products, and
other basic commodities. The fund may also invest in precious metals
and instruments whose value is linked to precious metals.
PAPER AND FOREST PRODUCTS PORTFOLIO invests primarily in companies engaged
in the manufacture, research, sale, or distribution of paper products,
packaging products, building materials (such as lumber and paneling
products), and other products related to the paper and forest products
industry. The fund may invest in diversified companies with operations
in the aforementioned areas. For example, the fund may invest in paper
production and office product companies, printers, and publishers.
The success of these companies depends on the health of the economy,
worldwide production capacity for the industry's products, and interest
rate levels, which may affect product pricing, costs, and operating
margins. These variables also affect the level of industry and consumer
capital spending for paper and forest products.
PRECIOUS METALS AND MINERALS PORTFOLIO invests primarily in companies
engaged in exploration, mining, processing, or dealing in gold, silver,
platinum, diamonds, or other precious metals and minerals. In addition to
investments in those companies , the fund's focus includes
investments in precious metals such as gold, silver, and platinum, coins,
and securities indexed to the price of gold or other precious metals. The
fund may also invest in companies that manufacture and distribute
precious metals and minerals products (such as jewelry, watches, and metal
foils and leaf) and companies that invest in other companies
engaged in gold-related activities.
The price of precious metals is affected by broad economic and political
conditions. For example, the price of gold and other precious metal mining
securities can face substantial short-term volatility caused by
international monetary and political developments such as currency
devaluations or revaluations, economic and social conditions within a
country, or trade restrictions between countries. Since much of the world's
gold reserves are located in South Africa, the social and economic
conditions there can affect gold and gold-related companies located
elsewhere.
The fund is authorized to invest up to 50% of its total assets in
precious metals and securities indexed to the price of gold and other
precious metals. FMR does not currently intend to purchase precious
metals if, as a result, more than 25% of the fund's total assets would be
invested in precious metals and securities indexed to the price of precious
metals. Under current federal tax law, gains from selling precious metals
may not exceed 10% of the fund's annual gross income. This tax requirement
could cause the fund to hold or sell precious metals or securities when it
would not otherwise do so.
REGIONAL BANKS PORTFOLIO invests primarily in companies engaged in
accepting deposits and making commercial and principally non-mortgage
consumer loans. These companies concentrate their operations in a specific
part of the country and may include, for example, state chartered
banks, savings and loan institutions, and banks that are members of the
Federal Reserve System. The fund may own securities of U.S. institutions
whose deposits are not insured by the federal government.
Legislation is currently being considered which would reduce the separation
between commercial and investment banking businesses. If enacted this could
significantly impact the industry and the fund.
As the services offered by banks expand, banks are becoming more exposed to
well-established competitors. This exposure has also increased due to the
erosion of historical distinctions between regional banks and other
financial institutions. Increased competition may result from the
broadening of regional and national interstate banking powers, which has
already reduced the number of publicly traded regional banks. In addition,
general economic conditions are important to regional banks which face
exposure to credit losses and dependence on interest rate activity.
RETAILING PORTFOLIO invests primarily in companies engaged in merchandising
finished goods and services primarily to individual consumers. These
companies may include, for example, drug and department stores;
suppliers of goods and services for homes, home improvements and yards;
food , clothing, jewelry, electronics and computer retailers;
motor vehicle and marine dealers; warehouse membership clubs; mail
order operations; and companies involved in alternative selling methods.
The success of retailing companies is closely tied to consumer spending,
which is affected by general economic conditions and consumer confidence
levels. The retailing industry is highly competitive, and a company's
success is often tied to its ability to anticipate changing consumer
tastes.
SOFTWARE AND COMPUTER SERVICES PORTFOLIO invests primarily in companies
engaged in research, design, production or distribution of products or
processes that relate to software or information-based services. These
companies may include, for example, companies that design products such
as systems - level software to run the basic functions of a computer;
or applications software for one type of work; and consulting,
communications, and related services.
Competitive pressures may have a significant effect on the financial
condition of companies in the software and computer services industries.
For example, an increasing number of companies and new product offerings
can lead to price cuts and slower selling cycles.
TECHNOLOGY PORTFOLIO invests primarily in companies which FMR believes
have, or will develop, products, processes, or services that will provide
or will benefit significantly from technological advances and improvements.
These companies may include, for example, companies that develop,
produce or distribute products or services in the computer, semi-conductor,
electronics, communications, health care, and biotechnology sectors.
Competitive pressures may have a significant effect on the financial
condition of companies in the technology sector . For example, if
technology continues to advance at an accelerated rate, and the number of
companies and product offerings continues to expand, these companies could
become increasingly sensitive to short product cycles and aggressive
pricing.
TELECOMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the
development, manufacture, or sale of communications services or
communications equipment. Companies in the telecommunications field may
range from traditional local and long-distance telephone service or
equipment providers to companies involved in new technologies such as
cellular telephone or paging services , fiber-optics, and
semiconductors .
Telephone operating companies are subject to both federal and state
regulations governing rates of return and services that may be offered.
Many companies in the industry fiercely compete for market share. Although
telephone companies usually pay an above - average dividend, the
fund's investment decisions are primarily based on growth potential and not
on income.
TRANSPORTATION PORTFOLIO invests primarily in companies engaged in
providing transportation services or companies engaged in the design,
manufacture, distribution, or sale of transportation equipment.
Transportation services may include, for example, companies involved in the
movement of freight or people such as airline, railroad, ship, truck
and bus companies ; equipment manufacturers (including makers
of trucks, automobiles, planes, containers, railcars or other modes of
transportation and related products); parts suppliers ; and
companies involved in leasing, maintenance, and
transportation- related services.
Transportation stocks are cyclical and have occasional sharp price
movements which may result from changes in the economy, fuel prices, labor
agreements, and insurance costs. The U nited States has been
deregulating these industries, but it is uncertain whether this trend will
continue and what its effect will be.
UTILITIES GROWTH PORTFOLIO invests primarily in companies in the
public utilities industry and companies deriving a majority of their
revenues from their public utility operations. Th ese may include,
for example, companies that manufacture, produce, sell, or transmit gas or
electric energy ; water supply, waste disposal and sewerage, and sanitary
service companies; and companies involved in telephone,
satellite, and other communication fields.
Public utility stocks have traditionally produced above-average dividend
income, but the fund's investments are based on growth potential. The
fund may not own more than 5% of the outstanding voting securities of more
than one public utility company as defined by the Public Utility Holding
Company Act of 1935. The public utilities industries may be subject to
broad risks resulting from governmental regulation, financing difficulties,
supply and demand of services or fuel, and special risks associated with
natural resource conservation.
MONEY MARKET PORTFOLIO seeks to earn a high level of current income while
maintaining a stable $1.00 share price by investing in high-quality,
short-term money market securities. The fund invests only in U.S.
dollar-denominated money market securities of domestic and foreign
issuers, including U.S. Government securities and repurchase agreements.
The fund may also enter into reverse repurchase agreements.
The fund earns income at current money market rates. It stresses
preservation of capital, liquidity, and income, and does not seek the
higher yields or capital appreciation that more aggressive investments may
provide. The fund's yield will vary from day to day and generally reflects
current short-term interest rates and other market conditions.
When you sell your shares, they should be worth the same amount as when you
bought them. Of course, there is no guarantee that the fund will maintain a
stable $1.00 share price. The fund follows industry-standard guidelines on
the quality, maturity , and diversification of its investments, which
are designed to help maintain a stable $1.00 share price. The fund will
purchase only high-quality securities that FMR believes present minimal
credit risks and will observe maturity restrictions on securities it buys.
In general, securities with longer maturities are more vulnerable to price
changes, although they may provide higher yields. It is possible that a
major change in interest rates or a default on the fund's investments could
cause its share price (and the value of your investment) to change.
SECURITIES AND INVESTMENT PRACTICES
The following pages contain more detailed information about types of
instruments in which a fund may invest, strategies FMR may employ in
pursuit of a fund's investment objective, and a summary of related risks.
Any restrictions listed supplement those discussed earlier in this section.
A complete listing of each fund's limitations and more detailed information
about each fund's investments are contained in the funds' SAI.
Policies and limitations are considered at the time of purchase; the sale
of instruments is not required in the event of a subsequent change in
circumstances.
FMR may not buy all of these instruments or use all of these techniques
unless it believes that they are consistent with a fund's investment
objective and policies and that doing so will help a fund achieve its goal.
Fund holdings and recent investment strategies are detailed in
each fund's f inancial reports, which are sent to shareholders twice
a year. For a free SAI or financial report, call 1-800-544-8888.
EQUITY SECURITIES may include common stocks, preferred stocks, convertible
securities, and warrants. Common stocks, the most familiar type, represent
an equity (ownership) interest in a corporation. Although equity securities
have a history of long-term growth in value, their prices fluctuate based
on changes in a company's financial condition and on overall market and
economic conditions. Smaller companies are especially sensitive to these
factors.
RESTRICTIONS: With respect to 100% of total assets, each of Financial
Services, Home Finance, and Regional Banks may not purchase more
than 10% of the outstanding voting securities of a single issuer. Utilities
Growth may not own more than 5% of the outstanding voting securities of
more than one public utility company as defined by the Public Utility
Holding Company Act of 1935. Each of Brokerage and Investment
Management and Financial Services may not invest more than 5% of its
total assets in the equity securities of any company that derives more than
15% of its revenues from brokerage or investment management activities.
DEBT SECURITIES. Bonds and other debt instruments are used by issuers to
borrow money from investors. The issuer pays the investor a fixed or
variable rate of interest, and must repay the amount borrowed at maturity.
Some debt securities, such as zero coupon bonds, do not pay current
interest, but are purchased at a discount from their face values. In
general, bond prices rise when interest rates fall, and vice versa. Debt
securities, loans, and other direct debt have varying degrees of quality
and varying levels of sensitivity to changes in interest rates.
Longer-term bonds are generally more sensitive to interest rate changes
than short-term bonds.
Investment-grade debt securities are medium- and high-quality securities.
Some, however, may possess speculative characteristics, and may be more
sensitive to economic changes and to changes in the financial condition of
issuers. Lower-quality debt securities are sometimes called "junk
bonds."
RESTRICTIONS: Purchase of a debt security is consistent with a stock fund's
debt quality policy if it is rated at or above the stated level by Moody's
Investors Service or rated in the equivalent categories by S&P, or
is unrated but judged to be of equivalent quality by FMR. Each stock fund
currently intends to limit its investments in lower than Baa-quality debt
securities to 5% of its assets.
MONEY MARKET SECURITIES are high-quality, short-term instruments issued
by the U.S. Government, corporations, financial i nstitutions, and other
entities. These securities may carry fixed, variable, or floating interest
rates. Some money market securities employ a trust or similar structure to
modify the maturity, price characteristics, or quality of financial assets
so that they are eligible investments for money market funds. If the
structure does not perform as intended, adverse tax or investment
consequences may result.
U.S. GOVERNMENT MONEY MARKET SECURITIES are short-term debt instruments
issued or guaranteed by the U.S. Treasury or by an agency or
instrumentality of the U.S. Government. Not all U.S. Government securities
are backed by the full faith and cre dit of t he United States. For
example, U.S. Government securities such as those issued by Fannie Mae are
supported by the instrumentality's right to borrow money from the U.S.
Treasury under certain circumstances. Other U.S. Government securities such
as those issu ed by the Federal Farm Credit Banks Funding Corporation are
supp orted only by the credit of the entity that issued them.
CREDIT AND LIQUIDITY SUPPORT. Issuers may employ various forms of
credit and liquidity enhancement, including letters of credit, guarantees,
puts and demand features, and insurance, provided by foreign or domestic
entities such as banks and other financial institutions. These arrangements
expose a fund to the credit risk of the entity providing the credit or
liquidity support. Changes in the credit quality of the provider could
affect the value of the security and a fund's share price.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations may
involve additional risks and considerations. These include risks relating
to political or economic conditions in foreign countries, fluctuations in
foreign currencies, withholding or other taxes, operational risks,
increased regulatory burdens, and the potentially less stringent investor
protection and disclosure standards of foreign markets. Additionally,
governmental issuers of foreign debt securities may be unwilling to pay
interest and repay principal when due and may require that the conditions
for payment be renegotiated. All of these factors can make foreign
investments, especially those in developing countries, more volatile than
U.S. invest ments.
ASSET-BACKED SECURITIES include interests in pools of mortgages, loans,
receivables, or other assets. Payment of principal and interest may be
largely dependent upon the cash flows generated by the assets backing the
securities.
VARIABLE AND FLOATING RATE SECURITIES have interest rates that are
periodically adjusted either at specific intervals or whenever a benchmark
rate changes. These interest rate adjustments are designed to help
stabilize the security's price.
STRIPPED SECURITIES are the separate income or principal components of a
debt security. The risks associated with stripped securities are similar to
those of other money market securities, although stripped securities may be
more volatile. U.S. Treasury securities that have been stripped by a
Federal Reserve Bank are obligations issued by the U.S. Treasury.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a security at
one price and simultaneously agrees to sell it back at a higher price.
Delays or losses could result if the other party to the agreement defaults
or becomes insolvent.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund
temporarily transfers possession of a portfolio instrument to another party
in return for cash. This could increase the risk of fluctuation in the
fund's yield or in the market value of its assets.
OTHER MONEY MARKET SECURITIES may include commercial paper,
certificates of deposit, bankers' acceptances, and time deposits.
PUT FEATURES entitle the holder to put (sell back) a security to the issuer
or another party. In exchange for this benefit, a fund may accept a
lower interest rate. The credit quality of the investment may be
affected by the creditworthiness of the put provider. Demand features,
standby commitments, and tender options are types of put features.
ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to
increase or decrease its exposure to changing security prices, interest
rates, currency exchange rates, commodity prices, or other factors that
affect security values. These techniques may involve derivative
transactions such as buying and selling options and futures contracts,
entering into currency exchange contracts or swap agreements, and
purchasing indexed securities.
FMR can use these practices to adjust the risk and return characteristics
of a fund's portfolio of investments. If FMR judges market conditions
incorrectly or employs a strategy that does not correlate well with a
fund's investments, these techniques could result in a loss, regardless of
whether the intent was to reduce risk or increase return. These techniques
may increase the volatility of a fund and may involve a small investment of
cash relative to the magnitude of the risk assumed. In addition, these
techniques could result in a loss if the counterparty to the transaction
does not perform as promised.
ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by
FMR, under the supervision of the Board of Trustees, to be illiquid, which
means that they may be difficult to sell promptly at an acceptable price.
The sale of some illiquid securities and some other securities may be
subject to legal restrictions. Difficulty in selling securities may result
in a loss or may be costly to a fund.
RESTRICTIONS: A fund may not purchase a security if, as a result, more than
10% of its assets would be invested in illiquid securities.
WHEN-ISSUED AND DELAYED-DELIVERY TRANSACTIONS are trading practices in
which payment and delivery for the securities take place at a future date.
The market value of a securi ty could change during this period.
FINANCIAL SERVICES INDUSTRY. Companies in the financial services industry
are subject to various risks related to that industry, such as government
regulation, changes in interest rates, and exposure on loans, including
loans to foreign borrowers. If a fund invests substantially in this
industry, its performance may be affected by conditions affecting the
industry.
RESTRICTIONS: Under normal conditions, the money market fund intends to
invest at least 25% of its assets in securities of companies in the
financial services industry.
OTHER INSTRU MENTS for the stock funds may include securities of
closed-end investment companies and real estate-related instruments.
CASH MANAGEMENT. A fund may invest in money market securities, in
repurchase agreements, and in a money market fund available only to funds
and accounts managed by FMR or its affiliates, whose goal is to seek a high
level of current income while maintaining a stable $1.00 share price. A
major change in interest rates or a default on the money market fund's
investments could cause its share price to change.
RESTRICTIONS: The money market fund does not currently intend to invest in
a money market fund.
DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the
risks of investing. This may include limiting the amount of money invested
in any one issuer or, on a broader scale, in any one industry. A fund that
is not diversified may be more sensitive to changes in the market value of
a single issuer or industry.
RESTRICTIONS: The stock funds (except Financial Services, Home Finance, and
Regional Banks ) are considered non-diversified. Generally, to meet
federal tax requirements at the close of each quarter, each stock
fund does not invest more than 25% of its total assets in any one issuer
and, with respect to 50% of total assets, does not invest more than 5% of
its total assets in any one issuer. These limitations do not apply to
U.S. Government securities or to securities of other investment companies.
Each of Financial Services, Home Finance, and Regional Banks, with respect
to 75% of its total assets, may not purchase a security if, as a result,
more than 5% would be invested in the securities of any one issuer. This
limitation does not apply to U.S. Government securities.
The money market fund may not invest more than 5% of its total assets in
any one issuer, except that it may invest up to 25% of its total assets
in the highest-quality securities of a single issuer for up to three
business days. This limitation does not apply to U.S. Government securities
or to securities of other investment companies.
With the exception of American Gold, Natural Resources, and Precious Metals
and Minerals, each stock fund normally invests at least 80%, but always at
least 25%, of its assets in securities of companies principally engaged in
the business activities identified for that fund. Each of Natural Resources
and Precious Metals and Minerals normally invests at least 80% of its
assets in securities of companies principally engaged in the business
activities identified for the fund, precious metals, and instruments whose
value is linked to the price of precious metals. American Gold normally
invests at least 80% of its assets in securities of North, Central, and
South American companies engaged in gold-related activities, and in gold
bullion or coins, and instruments whose value is linked to the price of
gold.
BORROWING. Each fund may borrow from banks or from other funds
advised by FMR, or through reverse repurchase agreements. If a stock fund
borrows money, its share price may be subject to greater fluctuation until
the borrowing is paid off. If a fund makes additional investments
while borrowings are outstanding, this may be considered a form of
leverage.
RESTRICTIONS: Each fund may borrow only for temporary or emergency
purposes, but not in an amount exceeding 33% of its total assets. The money
market fund may borrow only for temporary or emergency purposes, or engage
in reverse repurchase agreements, but not in an amount exceeding 33% of its
total assets.
LENDING securit ies to broker-dealers and institutions, including
Fidelity Brokerage Services, Inc. (FBSI), an affiliate of FMR, is a means
of earning income. This practice could result in a loss or a delay in
recovering a fund's securities. A fund may also lend money to other funds
advised by FMR.
RESTRICTIONS: Loans, in the aggregate, may not exceed 331/3% of a fund's
total assets.
FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS
Some of the policies and restrictions discussed on the preceding pages are
fundamental, that is, subject to change only by shareholder approval. The
following paragraphs restate all those that are fundamental. All policies
stated throughout this prospectus, other than those identified in the
following paragraphs, can be changed without shareholder approval.
AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the
regional, national and international movement of passengers, mail, and
freight via aircraft.
1.AMERICAN GOLD PORTFOLIO invests primarily in companies engaged in
exploration, mining, processing, or dealing in gold, or, to a lesser
degree, in silver, platinum, diamonds, or other precious metals and
minerals. The fund may not purchase any precious metal if, as a result,
more than 50% of its total assets would be invested in precious metals.
AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the
manufacture, marketing or sale of automobiles, trucks, specialty vehicles,
parts, tires, and related services.
BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the
research, development, and manufacture of various biotechnological
products, services and processes.
2.BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO invests primarily in
companies engaged in stock brokerage, commodity brokerage, investment
banking, tax-advantaged investment or investment sales, investment
management, or related investment advisory service s.
CHEMICALS PORTFOLIO invests primarily in companies engaged in the research,
development, manufacture or marketing of products or services related to
the chemical process industries.
COMPUTERS PORTFOLIO invests primarily in companies engaged in research,
design, development, manufacture or distribution of products, processes or
services that relate to currently available or experimental hardware
technology within the computer industry.
CONSTRUCTION AND HOUSING PORTFOLIO invests primarily in companies engaged
in the design and construction of residential, commercial, industrial and
public works facilities, as well as companies engaged in the manufacture,
supply, distribution or sale of products or services to these construction
industries.
CONSUMER IN DUSTRIE S PORTFOLIO invests primarily in companies engaged
in the manufacture and distribution of goods to consumers both domestically
and internationally.
CYCLICAL INDUSTRIES PORTFOLIO invests primarily in companies
engaged in the research, development, manufacture, distribution, supply, or
sale of materials, equipment, products or services related to cyclical
industries.
DEFENSE AND AEROSPACE PORTFOLIO invests primarily in companies engaged in
the research, manufacture or sale of products or services related to the
defense or aerospace industries.
DEVELOPING COMMUNICATIONS PORTFOLIO invests primarily in companies engaged
in the development, manufacture or sale of emerging communications services
or equipment.
ELECTRONICS PORTFOLIO invests primarily in companies engaged in the design,
manufacture, or sale of electronic components (semiconductors, connectors,
printed circuit boards and other components); equipment vendors to
electronic component manufacturers; electronic component distributors; and
electronic instruments and electronic systems vendors.
ENERGY PORTFOLIO invests primarily in companies in the energy field,
including the conventional areas of oil, gas, electricity and coal, and
newer sources of energy such as nuclear, geothermal, oil shale and solar
power.
ENERGY SERVICE PORTFOLIO invests primarily in companies in the energy
service field, including those that provide services and equipment to the
conventional areas of oil, gas, electricity and coal, and newer sources of
energy such as nuclear, geothermal, oil shale and solar power.
ENVIRONMENTAL SERVICES PORTFOLIO invests primarily in companies engaged in
the research, development, manufacture or distribution of products,
processes or services related to waste management or pollution control.
3.FINANCIAL SERVICES PORTFOLIO invests primarily in companies that
provide financial services to consumers and industry. With respect to
75% of total assets, the fund may not purchas e a secur ity if, as
a result, more than 5% would be invested in the securities of any one
issuer; and with respect to 100% of total assets, the fund may not
purchase more than 10% of the outstanding voting securities of a
single issuer.
FOOD AND AGRICULTURE PORTFOLIO invests primarily in companies engaged in
the manufacture, sale , or distribution of food and beverage
products, agricultural products, and products related to the development of
new food technologies.
HEALTH CARE PORTFOLIO invests primarily in companies engaged in the design,
manufacture, or sale of products or services used for or in connection with
health care or medicine.
HOME FINANCE PORTFOLIO invests primarily in companies engaged in investing
in real estate, usually through mortgages and other consumer-related loans.
With respect to 75% of total assets, the fund may not purchase a
security if, as a result, more than 5% would be invested in the securities
of any one issuer; and with respect to 100% of total assets, the fund may
not purchase more than 10% of the outstanding voting securities of a single
issuer.
INDUSTRIAL EQUIPMENT PORTFOLIO invests primarily in companies engaged in
the manufacture, distribution or service of products and equipment for the
industrial sector, including integrated producers of capital equipment
(such as general industry machinery, farm equipment, and computers), parts
suppliers and subcontractors.
INDUSTRIAL MATERIALS PORTFOLIO invests primarily in companies engaged in
the manufacture, mining, processing, or distribution of raw materials and
intermediate goods used in the industrial sector.
INSURANCE PORTFOLIO invests primarily in companies engaged in underwriting,
reinsuring, selling, distributing, or placing of property and casualty,
life, or health insurance.
LEISURE PORTFOLIO invests primarily in companies engaged in the design,
production, or distribution of goods or services in the leisure industries.
MEDICAL DELIVERY PORTFOLIO invests primarily in companies engaged in the
ownership or management of hospitals, nursing homes, health maintenance
organizations, and other companies specializing in the delivery of health
care services.
MULTIMEDIA PORTFOLIO invests primarily in companies engaged in the
development, production, sale and distribution of goods or services used in
the broadcast and media industries.
NATURAL GAS PORTFOLIO invests primarily in companies engaged in the
production, transmission, and distribution of natural gas, and involved in
the exploration of potential natural gas sources, as well as those
companies that provide services and equipment to natural gas producers,
refineries, cogeneration facilities, converters, and distributors.
4. NATURAL RESOURCES PORTFOLIO invests primarily in companies that own or
develop natural resources, or supply goods and services to such
companies.
PAPER AND FOREST PRODUCTS PORTFOLIO invests primarily in companies engaged
in the manufacture, research, sale, or distribution of paper products,
packaging products, building materials (such as lumber and paneling
products), and other products related to the paper and forest products
industry.
5.PRECIOUS METALS AND MINERALS PORTFOLIO invests primarily in companies
engaged in exploration, mining, processing or dealing in gold, silver,
platinum, diamonds or other precious metals and minerals. The fund may
not purchase any precious metal if, as a result, more than 50% of its total
assets would be invested in precious metals.
REGIONAL BANKS PORTFOLIO invests primarily in companies engaged in
accepting deposits and making commercial and principally non-mortgage
consumer loans. With respect to 75% of total assets, the fund may not
purchase a security if, as a result, more than 5% would be invested in
the securities of any one issuer; and with respect to 100% of total assets,
the fund may not purchase more than 10% of the outstanding voting
securities of a single issuer.
RETAILING PORTFOLIO invests primarily in companies engaged in merchandising
finished goods and services primarily to individual consumers.
SOFTWARE AND COMPUTER SERVICES PORTFOLIO invests primarily in companies
engaged in research, design, production or distribution of products or
processes that relate to software or information-based services.
TECHNOLOGY PORTFOLIO invests primarily in companies which FMR believes
have, or will develop, products, processes or services that will provide or
will benefit significantly from technological advances and improvements.
TELECOMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the
development, manufacture, or sale of communications services or
communications equipment.
TRANSPORTATION PORTFOLIO invests primarily in companies engaged in
providing transportation services or companies engaged in the design,
manufacture, distribution, or sale of transportation equipment.
UTILITIES GROWTH PORTFOLIO invests primarily in companies in the public
utilities industry and companies deriving a majority of their revenues from
their public utility operations.
MONEY MARKET PORTFOLIO seeks to provide high current income, consistent
with preservation of capital and liquidity, by investing in a broad range
of high quality money market instruments. At all times, 80% or more of the
fund's assets will be invested in money market instruments. The fund may
not invest more than 25% of its total assets in any one industry, except
that the fund will invest more than 25% of its total assets in the
financial services industry. The fund may borrow only for temporary or
emergency purposes, or engage in reverse repurchase agreements, but not in
an amount exceeding 33% of its total assets.
EACH STOCK FUND seeks capital appreciation.
With the exception of Cyclical Industries and Natural Resources, each
stock fund seeks to achieve its investment objective by investing primarily
in equity securities, including common stocks and securities
convertible into common stocks, and for American Gold and Precious Metals
and Minerals, in certain precious metals . Normally, for each stock fund
(except American Gold, Cyclical Industries, Natural Resources, and Precious
Metals and Minerals) at least 80%, and in no event less than 25%, of its
assets will be invested in securities of companies principally engaged in
the business activities identified for that fund. Normally at least 80% of
American Gold's assets will be invested in securities of North, Central and
South American companies engaged in gold-related activities, and in gold
bullion or coins. Under normal conditions, Precious Metals and Minerals
will invest at least 80%, of its assets in (i) securities of companies
principally engaged in exploration, mining, processing, or dealing in gold,
silver, platinum, diamonds, or other precious metals and minerals, and (ii)
precious metals. Each of Cyclical Industries and Natural Resources invests
at least 25% of its total assets in securities of companies principally
engaged in the business activities identified for the fund.
For the purposes of the policies for each stock fund (except Cyclical
Industries and Natural Resources), a company is considered to be
"principally engaged" in a designated business activity if at least 50% of
its assets, gross income, or net profits are committed to, or derived from,
that activity. For Brokerage and Investment Management and Financial
Services, an issuer that derives more than 15% of revenues or profits from
brokerage or investment management activities is considered to be
principally engaged in the business activities identified for those funds.
For each stock fund (except Cyclical Industries and Natural Resources), FMR
does not place any emphasis on income when selecting securities, except
when it believes that income may have a favorable effect on a security's
market value.
When FMR considers it appropriate for defensive purposes, each stock
fund (except Cyclical Industries and Natural Resources) may temporarily
invest substantially in investment- grade debt securities.
EACH STOCK FUND may borrow only for temporary or emergency purposes, but
not in an amount exceeding 33% of its total assets.
Loans, in the aggregate, for each fund, may not exceed 33% of total assets.
BREAKDOWN OF EXPENSES
Like all mutual funds, the funds pay fees related to their daily
operations. Expenses paid out of a fund's assets are reflected in its share
price or dividends; they are neither billed directly to shareholders nor
deducted from shareholder accounts.
Each fund pays a MANAGEMENT FEE to FMR for managing its investments and
business affairs. FMR in turn pays fees to affiliates who provide
assistance with these services. Each fund also p ays OTHER EXPENSES,
which are explained on page .
FMR may, from time to time, agree to reimburse the funds for management
fees and other expenses above a specified limit. FMR retains the ability to
be repaid by a fund if expenses fall below the specified limit prior to the
end of the fiscal year. Reimbursement arrangements, which may be terminated
at any time without notice, can decrease a fund's expenses and boost its
performance.
MANAGEMENT FEE
EACH STOCK FUND'S management fee is calculated and paid to FMR every month.
The fee for each fund is calculated by adding a group fee rate to an
individual fund fee rate, and multiplying the result by the respective
fund's average net assets.
The group fee rate is based on the average net assets of all the mutual
funds advised by FMR. This rate cannot rise above .52%, and it drops as
total assets under management increase.
Fo r February 1997, the group fee rate was .3005 %. The
individual fund fee rate is .30% for the stock funds. The total
managem ent fe e rate for each fund for fiscal 1997 is shown in the
table on page .
THE MONEY MARKET FUND'S management fee is calculated by multiplying the sum
of two components by the fund's average net assets and adding an
income-based fee. One component, the group fee rate, is based on the
average net assets of all the mutual funds advised by FMR. It cannot rise
above .37% and it drops as total assets under management increase. The
other component, the individual fund fee rate, is .03%. The income-based
fee is 6% of the fund's gross income in excess of a 5% yield and cannot
rise above .24% of the fund's average net assets.
For February 1997, the group fee rate was .1414%. The money market
fund's total mana gement fee for fiscal 1997 was .20 %.
FMR HAS SUB-ADVISORY AGREEMENTS with FMR U.K. and FMR Far East on behalf of
each of the stock funds (except American Gold Portfolio). These
sub-advisers provide FMR with investment research and advice on issuers
based outside the United States. Under the sub-advisory agreements, FMR
pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively,
of the costs of providing these services.
The sub-advisers may also provide investment management services. In
return, FMR pays FMR U.K. and FMR Far East a fee equal to 50% of its
management fee rate with respect to a fund's investments that the
sub-adviser manages on a discretionary basis.
FMR Texas is the money market fund's sub-adviser and has primary
responsibility for managing its investments. FMR is responsible for
providing other management services. FMR pays FMR Texas 50 % of
its management fee (before expense reimbursements) for FMR Texas's
services. FMR paid FMR Texas a fee equal to 0.10 % of the money
market fund's average net assets for the fiscal year ended
February 1997.
OTHER EXPENSES
While the management fee is a significant component of the funds' annual
operating costs, the funds have other expenses as well.
The funds contract w ith F SC to perform many transaction and
accounting functions. These services include processing shareholder
transactions, valuing each fund's investments, and handling securities
loans. In the fiscal year ended February 1997 , the funds paid
FSC the fees, expressed as a percentage of average net assets,
outlined in the table on page .
The funds also pay other expenses, such as legal, audit, and custodian
fees; proxy solicitation costs; and the compensation of trustees who are
not affiliated with Fidelity. A broker-dealer may use a portion of the
commissions paid by a fund to reduce that fund's custodian or
transfer agent fees.
Each fund's turnover rate varies from year to year, depending on market
conditions. High turnover rates increase transaction costs and may increase
taxable capital gains. FMR considers these effects when evaluating the
anticipated benefits of short-term investing. Each funds' (except
Cyclical Industries, Natural Resources and the money market fund)
portfolio turnover rates for the fiscal year ended February 1997 are
shown in the chart on page . The annualized portfolio turnover rates for
Cyclical Industries and Natural Resources are not expected to exceed 200%
for their first fiscal periods ending February 1998.
6. Management Fees to Turnover
Fund fees FSC rate
Air Transportation .60% 1.11% 469%
American Gold .60% .77% 63%
Automotive .60% .87% 175%
Biotechnology .60% .94% 41%
Brokerage and Investment Management .62% .84% 16%
Chemicals .60% 1.14% 207%
Computers .61% .84% 255%
Construction and Housing .60% .70% 270%
Consumer Industries .60% 1.59% 340%
Defense and Aerospace .61% 1.02% 219%
Developing Communications .60% 1.01% 202%
Electronics .61% .68% 341%
Energy .60% .91% 87%
Energy Service .60% .78% 167%
Environmental Services .61% 1.39% 252%
Financial Services .61% .79% 80%
Food and Agriculture .60% .88% 91%
Health Care .60% .70% 59%
Home Finance .61% .69% 78%
Industrial Equipment .61% .81% 261%
Industrial Materials .60% .87% 105%
Insurance .61% 1.03% 142%
Leisure .60% .90% 127%
Medical Delivery .60% .92% 78%
Multimedia .60% .91% 99%
Natural Gas .60% .98% 283%
Paper and Forest Products .60% 1.38% 180%
Precious Metals and Minerals .60% .93% 54%
Regional Banks .61% .77% 43%
Retailing .60% .78% 278%
Software and Computer Services .60% .88% 279%
Technology .60% .84% 549%
Telecommunications .60% .88% 175%
TransportationA .40% 1.71% 148%
Utilities Growth .60% .83% 31%
Money Market .20% .27% n/a
A AFTER REIMBURSEMENT
YOUR ACCOUNT
DOING BUSINESS WITH FIDELITY
Fidelity Investments was established in 1946 to manage one of America's
first mutual funds. Today, Fidelity is the largest mutual fund company in
the country, and is known as an innovative provider of high-quality
financial services to individuals and institutions.
In addition to its mutual fund business, the company operates one of
America's leading discount brokerage firms, FBSI. Fidelity is also a leader
in providing tax-sheltered retirement plans for individuals investing on
their own or through their employer.
Fidelity is committed to providing investors with practical information to
make investment decisions. Based in Boston, Fidelity provides customers
with complete service 24 hours a day, 365 days a year, through a network of
telephone service centers around the country.
To reach Fidelity for general information, call these numbers:
(small solid bullet) For mutual funds, 1-800-544-8888
(small solid bullet) For brokerage, 1-800-544-7272
If you would prefer to speak with a representative in person, Fidelity has
over 80 walk-in Investor Centers across the country.
TYPES OF ACCOUNTS
You may set up an account directly in a fund or, if you own or intend to
purchase individual securities as part of your total investment portfolio,
you may consider investing in a fund through a brokerage account.
Y ou may purchase or sell shares of the funds through an investment
professional, including a broker, who may charge you a transaction fee for
this service. If you invest through FBSI, another financial institution, or
an investment professional, read their program materials for any special
provisions, additional service features or fees that may apply to your
investment in the fund. Certain features of the fund, such as the minimum
initial or subsequent investment amounts, may be modified.
The different ways to set up (register) your account with Fidelity are
listed in the table that follows.
The account guidelines that follow may not apply to certain retirement
accounts. I f you are investing through a retirement account or if your
employer offers the funds through a retirement program, you may be subject
to additional fees. For more information, please refer to your program
materials, contact your employer, or call your retirement benefits number
or Fidelity directly, as appropri ate.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
Individual accounts are owned by one person. Joint accounts can have two or
more owners (tenants).
RETIREMENT
TO SHELTER YOUR RETIREMENT SAVINGS FROM TAXES
Retirement plans allow individuals to shelter investment income and
capital gains from current taxes. In addition, contributions to these
accounts may be tax deductible. Retirement accounts require special
applications and typically have lower minimums.
(solid bullet) INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow anyone of legal
age and under 70 with earned income to invest up to $2,000 per tax year.
Individuals can also invest in a spouse's IRA if the spouse has earned
income of less than $250.
(solid bullet) ROLLOVER IRAS retain special tax advantages for certain
distributions from employer-sponsored retirement plans.
(solid bullet) KEOGH OR CORPORATE PROFIT SHARING AND MONEY PURCHASE PENSION
PLANS allow self-employed individuals or small business owners (and their
employees) to make tax-deductible contributions for themselves and any
eligible employees up to $30,000 per year.
(solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide small
business owners or those with self-employed income (and their eligible
employees) with many of the same advantages as a Keogh, but with fewer
administrative requirements.
(solid bullet) 403(B) CUSTODIAL ACCOUNTS are available to employees of most
tax-exempt institutions, including schools, hospitals, and other charitable
organizations.
(solid bullet) 401(K) PROGRAMS allow employees of corporations of all sizes
to contribute a percentage of their wages on a tax-deferred basis. These
accounts need to be established by the trustee of the plan.
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
These custodial accounts provide a way to give money to a child and obtain
tax benefits. An individual can give up to $10,000 a year per child without
paying federal gift tax. Depending on state laws, you can set up a
custodial account under the Uniform Gifts to Minors Act (UGMA) or the
Uniform Transfers to Minors Act (UTMA).
TRUST
FOR MONEY BEING INVESTED BY A TRUST
The trust must be established before an account can be opened.
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, OR OTHER
GROUPS
Requires a special application.
FIDELITY FACTS
Fidelity offers the broadest selection of mutual funds
in the world.
(solid bullet) Number of Fidelity mutual funds: over 225
(solid bullet) Assets in Fidelity mutual funds: over $432 billion
(solid bullet) Number of shareholder accounts: over 29 million
(solid bullet) Number of investment analysts and portfolio managers: over
270
(checkmark)
HOW TO BUY SHARES
ONCE EACH HOUR OF EVERY BUSINESS DAY, TWO SHARE PRICES ARE CALCULATED FOR
EACH FUND: the offering price and the net asset value (NAV). If you qualify
for a sales charge waiver as described on page , your share price
will be the NAV. If you pay a sales charge as described on page ,
you r share price will be the offering price. When you buy shares at the
offering price, Fidelity deducts the appropriate sales charge and invests
the rest in the fund.
Shares are purchased at the next share price calculated after your
investment is received and accepted. Share price is normally calculated
hourly, each business day, from 10 a.m. to 4 p.m. Eastern time.
IF YOU ARE NEW TO FIDELITY, complete and sign an account application and
mail it along with your check. You may also open your account in person or
by wire as described in the table that follows. If there is no application
accompanying this prospectus, call 1-800-544-8888.
IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY FUND, you can:
(small solid bullet) Mail in an application with a check, or
(small solid bullet) Open your account by exchanging from another Fidelity
fund.
IF YOU ARE INVESTING THROUGH A TAX-SHELTERED RETIREMENT PLAN, such as an
IRA, for the first time, you will need a special application. Retirement
investing also involves its own investment procedures. Call 1-800-544-8888
for more information and a retirement application.
If you buy shares by check or Fidelity Money Line(registered trademark),
and then sell those shares by any method other than by exchange to another
Fidelity fund, the payment may be delayed for up to seven business days to
ensure that your previous investment has cleared.
MINIMUM INVESTMENTS
TO OPEN AN ACCOUNT $2,500
For Fidelity IRA, Rollover IRA, SEP-IRA and Keogh accounts $500
TO ADD TO AN ACCOUNT $250
For Fidelity IRA, Rollover IRA, SEP-IRA and Keogh accounts $250 Through
regular investment plans* $100
MINIMUM BALANCE $2,000
For Fidelity IRA, Rollover IRA, SEP-IRA and Keogh accounts $500
* FOR MORE INFORMATION ABOUT REGULAR INVESTMENT PLANS, PLEASE REFER TO
INVESTOR SERVICES, PAGE .
These minimums may vary for investments through Fidelity Portfolio Advisory
Services. There is no minimum account ba lance or initial or subsequent
investment minimums for certain retirement accounts funded through salary
reduction, or accounts opened with the proceeds of distributions from such
Fidelity retirement accounts. Refer to the program materials for
details.
(null)Key Information
Phone 1#800#544#7777
S
To open an account, exchange from another Fidelity fund account with the
same
registration, including name, address, and taxpayer ID number.
S
To add to an account, exchange from another Fidelity fund account with the
same registration, including name, address, and taxpayer ID number. You can
also use Fidelity Money Line to transfer from your bank account. Call
before
your first use to verify that this service is in place on your account.
Maximum
Money Line: Up to $100,000
Mail
S
To open an account, complete and sign the application. Make your check
payable
to Fidelity Select Portfolios and specify the fund you are investing in on
the application. Mail to the address indicated on the application.
S
To add to an account, make your check payable to the complete name of the
fund
of your choice. Indicate your fund account number on your check. Mail to
the
address printed on your account statement.
In Person
S
To open an account, bring your application and check to a Fidelity Investor
Center. Call 1#800#544#9797 for the center nearest you.
S
To add to an account, bring your check to a Fidelity Investor Center. Call
1#800#544#9797 for the center nearest you.
S
Orders will be executed at the next hourly price determined after your
investment
is accepted.
Wire
Not available for retirement accounts.
S
To open an account, call 1#800#544#7777 to set up your account and to
arrange
a wire transaction. Wire within 24 hours to the wire address below. Specify
the complete name of the fund and include your new account number and your
name.
S
To add to an account, wire to the wire address below. Specify the complete
name of the fund and include your account number and your name.
S
Wire address: Bankers Trust Company,
Bank Routing #021001033, Account # 00163053.
Automatically
New accounts cannot be opened with these services.
S
Use Fidelity Automatic Account Builder or Direct Deposit to automatically
purchase
more shares. Sign up for these services when opening your account, or call
1#800#544#6666. Direct Deposit is not available for Select stock funds or
for
retirement accounts.
S
Use Directed Dividends or Fidelity Automatic Exchange Service to
automatically
send money from one Fidelity fund into another. Call 1#800#544#6666 for
instructions.
TDD - Service for the Deaf and Hearing#Impaired: 1#800#544#0118
(null)
How to Sell Shares
You can arrange to take money out of your fund account at any time by
selling
(redeeming) some or all of your shares. Your shares will be sold at the
next
share price calculated after your order is received and accepted. Share
price
is normally calculated hourly, each business day, from 10:00 a.m. to 4:00
p.m.
Eastern time.
To sell shares in a non#retirement account,
you may use any of the methods described on these two pages.
To sell shares in a Fidelity retirement account,
your request must be made in writing, except for exchanges to other
Fidelity
funds, which can be requested by phone or in writing. Call 1#800#544#6666
for
a retirement distribution form.
If you are selling some but not all of your shares,
leave at least $2,000 worth of shares in the account to keep it open ($500
for retirement accounts).
To sell shares by bank wire or Fidelity Money Line,
you will need to sign up for these services in advance.
Certain requests must include a signature guarantee.
It is designed to protect you and Fidelity from fraud. Your request must
be
made in writing and include a signature guarantee if any of the following
situations
apply:
S
You wish to redeem more than $100,000 worth of shares,
S
Your account registration has changed within the last 30 days,
S
The check is being mailed to a different address than the one on your
account
(record address),
S
The check is being made payable to someone other than the account owner, or
S
The redemption proceeds are being transferred to a Fidelity account with a
different registration.
You should be able to obtain a signature guarantee from a bank, broker
(including
Fidelity Investor Centers), dealer, credit union (if authorized under state
law), securities exchange or association, clearing agency, or savings
association.
A notary public cannot provide a signature guarantee.
Selling Shares in Writing
Write a "letter of instruction" with:
S
Your name,
S
The fund's name,
S
Your fund account number,
S
The dollar amount or number of shares to be redeemed, and
S
Any other applicable requirements listed in the table that follows.
Unless otherwise instructed, Fidelity will send a check to the record
address.
Deliver your letter to a Fidelity Investor Center, or mail it to:
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266#0602
Fees and Key Information
If you sell shares of a stock fund after holding them 29 days or less, the
fund will deduct a redemption fee equal to 0.75% of the value of those
shares.
For shares held 30 days or more, the redemption fee is equal to the lesser
of $7.50 or 0.75% of the value of those shares redeemed. In addition, there
may be a $7.50 fee for each exchange out of a stock fund.
Phone 1#800#544#7777
All account types except retirement
S
Maximum check request: $100,000.
S
For Money Line transfers to your bank account; minimum: $10; maximum: Up to
$100,000.
All account types
S
You may exchange to other Fidelity funds if both accounts are registered
with
the same name(s), address, and taxpayer ID number.
Mail or in Person
Individual, Joint Tenant, Sole Proprietorship, UGMA, UTMA
S
The letter of instruction must be signed by all persons required to sign
for
transactions, exactly as their names appear on the account.
Retirement account
S
The account owner should complete a retirement distribution form. Call
1#800#544#6666
to request one.
Trust
S
The trustee must sign the letter indicating capacity as trustee. If the
trustee's
name is not in the account registration, provide a copy of the trust
document
certified within the last 60 days.
Business or Organization
S
At least one person authorized by corporate resolution to act on the
account
must sign the letter.
S
Include a corporate resolution with corporate seal or a signature
guarantee.
Executor, Administrator, Conservator, Guardian
S
Call 1#800#544#6666 for instructions.
Wire
All account types except retirement
S
You must sign up for the wire feature before using it. To verify that it is
in place, call 1#800#544#6666. Minimum wire: $5,000.
S
Your wire redemption request must be received and accepted by Fidelity
before
4 p.m. Eastern time for money to be wired on the next business day.
TDD - Service for the Deaf and Hearing#Impaired: 1#800#544#0118
YOUR ACCOUNT
INVESTOR SERVICES
Fidelity provides a variety of services to help you manage your account.
INFORMATION SERVICES
FIDELITY'S TELEPHONE REPRESENTATIVES are available 24 hours a day, 365 days
a year. Whenever you call, you can speak with someone equipped to provide
the information or service you need.
24-HOUR SERVICE
ACCOUNT ASSISTANCE
1-800-544-6666
ACCOUNT TRANSACTIONS
1-800-544-7777
PRODUCT INFORMATION
1-800-544-8888
RETIREMENT ACCOUNT ASSISTANCE
1-800-544-4774
TOUCHTONE XPRESSSM
1-800-544-5555
AUTOMATED SERVICE
(checkmark)
STATEMENTS AND REPORTS that Fidelity sends to you include the following:
(small solid bullet) Confirmation statements (after every transaction,
except reinvestments, that affects your account balance or your account
registration)
(small solid bullet) Account statements (quarterly)
(small solid bullet) Financial reports (every six months)
To reduce expenses, only one copy of most financial reports and
prospectuses will be mailed to your household, even if you have more
than one account in the fund. Call 1-800-544-6666 if you need copies of
financial reports, prospectuses, or histor ical account information.
TRANSACTION SERVICES
EXCHANGE PRIVILEGE. You may sell your fund shares and buy shares of other
Fidelity funds by telephone or in writing. The shares you exchange will
carry credit for any sales charge you previously paid in connection with
their purchase. There is a $7.50 fee for each exchange out of a stock fund,
unless you place your transaction on Fidelity's automated exchange
services. This fee would apply in addition to the redemption fees which you
pay every time you sell your shares.
For exchanges made by mail or phon e orders are executed:
(small solid bullet) Between Select funds or from a Fidelity money market
fund generally at the next hourly price calculated after your order is
received and accepted.
(small solid bullet) From another Fidelity stock or bond fund, generally at
the 4:00 p.m. price calculated after your order is received and
accepted.
Note that exchanges between Select funds are unlimited, but exchanges out
of the funds to other Fidelity funds are limited to four per calendar year.
Exchanges may have tax consequences for you . For details on policies
and restrictions governing exchanges, including circumstances under which a
shareholder's exchange privilege may be suspended or revoked, see
page .
SYSTEMATIC WITHDRAWAL PLANS let you set up periodic redemptions from your
account. Because of the funds' sales charge, you may not want to set up a
systematic withdrawal plan during a period when you are buying shares on a
regular basis.
FIDELITY MONEY LINE(registered trademark) enables you to transfer money by
phone between your bank account and your fund account. Most transfers are
complete within three business days of your call.
REGULAR INVESTMENT PLANS
One easy way to pursue your financial goals is to invest money regularly.
Fidelity offers convenient services that let you transfer money into your
fund account, or between fund accounts, automatically. While regular
investment plans do not guarantee a profit and will not protect you against
a loss in a declining market, they can be an excellent way to invest for
retirement, a home, educational expenses, and other long-term financial
goals. Certain restrictions apply for retirement accounts. Call
1-800-544-6666 for more information.
REGULAR IN VESTM ENT PLANS
FIDELITY AUTOMATIC ACCOUNT BUILDERSM
TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND
MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly or (small solid bullet) For a new account,
quarterly complete the appropriate
section on the fund
application.
(small solid bullet) For existing accounts,
call 1-800-544-6666 for
an application.
(small solid bullet) To change the amount or
frequency of your
investment, call 1-800-
544-6666 at least three
business days prior to
your next scheduled
investment date.
DIRECT DEPOSIT
TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY
FUND A
MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Every pay (small solid bullet) Not available for Select
period stock funds or retirement
accounts.
(small solid bullet) Check the appropriate
box on the fund
application, or call
1-800-544-6666 for an
authorization form.
(small solid bullet) Changes require a new
authorization form.
FIDELITY AUTOMATIC EXCHANGE SERVICE
TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND
MINIMUM FREQUENCY SETTING UP OR CHANGING
$100 Monthly, (small solid bullet) Check the appropriate
bimonthly, box on the fund
quarterly, or application, or call
annually 1-800-544-6666 for an
authorization form.
(small solid bullet) To change the amount or
frequency of your
investment, call
1-800-544-6666
A BECAUSE THE STOCK FUNDS' PRICES FLUCTUATE, THOSE FUNDS MAY NOT BE
APPROPRIATE CHOICES FOR DIRECT DEPOSIT OF YOUR ENTIRE CHECK.
SHAREHOLDER AND ACCOUNT POLICIES
DIVIDENDS, CAPITAL GAINS, AND TAXES
Each stock fund distributes substantially all of its net income and capital
gains to shareholders each year. Normally, capital gains and dividends are
distributed in April and December. Income dividends for the money market
fund are declared daily and paid monthly.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. If the option you prefer is not listed on the
application, call 1-800-544-6666 for instructions. Each stock fund offers
four options (three for the money market fund):
1. REINVESTMENT OPTION. Your dividend and capital gain distributions will
be automatically reinvested in additional shares of the fund. If you do not
indicate a choice on your application, you will be assigned this option.
2. INCOME-EARNED OPTION. Your capital gain distributions will be
automatically reinvested, but you will be sent a check for each dividend
distribution. This option is not available for the money market fund.
3. CASH OPTION. You will be sent a check for your dividend and capital gain
distributions.
4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividend and
capital gain distributions will be automatically invested in another
identically registered Fidelity fund.
FOR RETIREMENT ACCOUNTS, all distributions are automatically reinvested.
When you are over 59 years old, you can receive distributions in cash.
SHARES PURCHASED THROUGH REINVESTMENT of dividend and capital gain
distributions are not subject to the funds' 3% sales charge. Likewise, if
you direct distributions to a fund with a 3% sales charge, you will not pay
a sales charge on those purchases.
For the stock funds, distributions will be reinvested, or deducted from the
share price, at 10:00 a.m. on the ex-dividend date. Shareholders of record
at 4:00 p.m. on the business day before the ex-dividend will be entitled to
receive the distribution. For the money market fund, dividends will be
reinvested at 4:00 p.m. on the last day of the month. Cash distribution
checks will be mailed within seven days.
TAXES
As with any investment, you should consider how your investment in a fund
will be taxed. If your account is not a tax-deferred retirement account,
you should be aware of these tax implications.
TAXES ON DISTRIBUTIONS. Distributions are subject to federal income tax,
and may also be subject to state or local taxes. If you live outside the
United States, your distributions could also be taxed by the country in
which you reside. Your distributions are taxable when they are paid,
whether you take them in cash or reinvest them. However, distributions
declared in December and paid in January are taxable as if they were paid
on December 31.
For federal tax purposes, each fund's income and short-term capital gain
distributions are taxed as dividends; long-term capital gain distributions
are taxed as long-term capital gains. Every January, Fidelity will send you
and the IRS a statement showing the taxable distributions paid to you in
the previous year.
TAXES ON TRANSACTIONS. Your stock fund redemptions - including exchanges to
other Fidelity funds - are subject to capital gains tax. A capital gain or
loss is the difference between the cost of your shares and the price you
receive when you sell them.
Whenever you sell shares of a fund, Fidelity will send you a confirmation
statement showing how many shares you sold and at what price. You will also
receive a consolidated transaction statement every January. However, it is
up to you or your tax preparer to determine whether this sale resulted in a
capital gain and, if so, the amount of tax to be paid. Be sure to keep your
regular account statements; the information they contain will be essential
in calculating the amount of your capital gains.
"BUYING A DIVIDEND." If you buy shares when a stock fund has realized
but not yet distributed income or capital gains, you will pay the full
price for the shares and then receive a portion of the price back in the
form of a taxable distribution.
EFFECT OF FOREIGN TAXES. Foreign governments may impose taxes on a fund and
its investments and these taxes generally will reduce the fund's
distributions. However, an offsetting tax credit or deduction may be
available to you. If so, your tax statement will show more taxable income
or capital gains than were actually distributed by the fund, but will also
show the amount of the available offsetting credit or deduction.
There are tax requirements that all funds must follow in order to avoid
federal taxation. In its effort to adhere to these requirements, a fund may
have to limit its investment activity in some types of instruments.
TRANSACTION DETAILS
THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE)
is open. Fidelity normally calculates each fund's NAV and offering price
hourly, from 10:00 a.m. to 4:00 p.m. Eastern time each business day of
the NYSE.
EACH FUND'S NAV is the value of a single share. The NAV is computed by
adding the value of the fund's investments, cash, and other assets,
subtracting its liabilities, and then dividing the result by the number of
shares outstanding.
Each stock funds' assets are valued primarily on the basis of market
quotations. Foreign securities are valued on the basis of quotations from
the primary market in which they are traded, and are translated from the
local currency into U.S. dollars using current exchange rates.
Short-term securities with remaining maturities of sixty days or less for
which quotations are not readily available are valued on the basis of
amortized cost. This method minimizes the effect of changes in a security's
market value. In addition, if quotations are not readily available, or
if the values have been materially affected by events occurring after the
closing of a foreign market, assets may be valued by a method that the
Board of Trustees believes accurately reflects fair value.
The money market fund values the securities it owns on the basis of
amortized cost. This method minimizes the effect of changes in a security's
market value and helps the fund to maintain a stable $1.00 share price.
THE OFFERING PRICE (price to buy one share) of each fund is its
NAV divided by the difference between one and the applicable sales charge
percentage. The maximum sales charge is 3% of the offering price.
Each fund's REDEMPTION PRICE (price to sell one share) is its NAV
minus the fund's redemption fee, if applicable. Exchanges out of a stock
fund will also be charged an additional $7.50 fee unless you place your
transaction on Fidelity's automated exchange services.
WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that
your Social Security or taxpayer identification number is correct and that
you are not subject to 31% backup withholding for failing to report income
to the IRS. If you violate IRS regulations, the IRS can require a fund to
withhold 31% of your taxable distributions and redemptions.
YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Fidelity may only be
liable for losses resulting from unauthorized transactions if it does not
follow reasonable procedures designed to verify the identity of the caller.
Fidelity will request personalized security codes or other information, and
may also record calls. You should verify the accuracy of your confirmation
statements immediately after you receive them. If you do not want the
ability to redeem and exchange by telephone, call Fidelity for
instructions.
IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods
of unusual market activity), consider placing your order by mail or by
visiting a Fidelity Investor Center.
EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period
of time. Each fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. See "Exchange Restrictions"
on page . Purchase orders may be refused if, in FMR's opinion, they
would disrupt management of a fund.
WHEN YOU PLACE AN ORDER TO BUY SHARES, your order will be processed at the
next offering price calculated after your order is received and accepted.
Note the following:
(small solid bullet) All of your purchases must be made in U.S. dollars and
checks must be drawn on U.S. banks.
(small solid bullet) Fidelity does not accept cash.
(small solid bullet) When making a purchase with more than one check, each
check must have a value of at least $50.
(small solid bullet) Each fund reserves the right to limit the number of
checks processed at one time.
(small solid bullet) If your check does not clear, your purchase will be
cancelled and you could be liable for any losses or fees a fund or its
transfer agent has incurred.
(small solid bullet) If you do not specify a particular stock fund, your
investment will be made in the money market fund until FSC receives
instructions from you.
TO AVOID THE COLLECTION PERIOD associated with check and Money Line
purchases, consider buying shares by bank wire, U.S. Postal money order,
U.S. Treasury check, Federal Reserve check, or direct deposit instead.
FSBI ESTABLISHED A program permitting customers with Fidelity
brokerage accounts to sell short shares of certain Select stock funds. FMR
reserves the right to suspend the short selling program at any time in the
future.
CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with
FDC may enter confirmed purchase orders on behalf of customers by phone,
with payment to follow no later than the time when a fund is priced on the
following business day. If payment is not received by that time, the
financial institution could be held liable for resulting fees or losses.
WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the
next NAV calculated after your request is received and accepted. Note the
following:
(small solid bullet) Normally, redemption proceeds will be mailed to you on
the next business day, but if making immediate payment could adversely
affect a fund, it may take up to seven days to pay you.
(small solid bullet) For the money market fund, shares will earn
dividends through the date of redemption; however, shares redeemed on a
Friday or prior to a holiday will continue to earn dividends until the next
business day.
(small solid bullet) Fidelity Money Line redemptions generally will be
credited to your bank account on the second or third business day after
your phone call.
(small solid bullet) Each fund may hold payment on redemptions until it is
reasonably satisfied that investments made by check or Fidelity Money Line
have been collected, which can take up to seven business days.
(small solid bullet) Redemptions may be suspended or payment dates
postponed when the NYSE is closed (other than weekends or holidays), when
trading on the NYSE is restricted, or as permitted by the SEC.
A REDEMPTION FEE, (stock funds only) of $7.50 or 0.75% of the value
of your redemption, depending on how long your shares were held,
will be deducted from the amount of your redemption. For shares held for
30 days or more, the redemption fee is equal to the lesser of $7.50 or
0.75% of the value of those shares redeemed. For shares held for less than
30 days, the redemption fee is equal to 0.75% of the value of those shares
redeemed. The redemption fee is paid to the fund rather than FMR, and it
does not apply to shares that were acquired through reinvestment of
distributions. If you bought shares on different days, the shares you held
longest will be redeemed first for purposes of determining the fund's
redemption fee.
FIDELITY RESERVES THE RIGHT TO DEDUCT AN ANNUAL MAINTENANCE FEE of $12.00
from accounts with a value of less than $2,500 (including any amount paid
as a sales charge), subject to an annual maximum charge of $24.00 per
shareholder. It is ex pected that accounts will be valued on the second
Friday in November of each year. Accounts opened after September 30 will
not be subject to the fee for that year. The fee, which is payable to the
transfer agent, is designed to offset in part the relatively higher costs
of servicing smaller accounts. This fee will not be deducted from
Fidelity brokerage accounts , retirement accounts (except
non-prototype retirement accounts), accounts using regular investment
plans, or if total assets with Fidelity exceed $30,000.
Eligibility for the $30,000 waiver is determined by aggregating
Fidelit y acc ounts maintained by FSC or FBSI which are registered
under the same social security number or which list the same social
security number for the custodian of a Uniform Gifts/Transfers to Minors
Act account.
IF YOUR ACCOUNT BALANCE FALLS BELOW $ 2 ,000, you will be given 30
days' notice to reestablish the minimum balance. If you do not increase
your balance, Fidelity reserves the right to close your account and send
the proceeds to you. Your shares will be redeemed at the NAV , minus
applicable redemption fees (stock funds only), on the day your account
is closed.
THE SELECT CASH RESERVES ACCOUNT no longer accepts new investments. If you
have an investment in this account, you may leave it there, redeem your
investment, or exchange your shares for shares of a Select fund or another
Fidelity fund. The 1% deferred sales charge will apply to shares in the
Select Cash Reserves Account redeemed or exchanged to another Fidelity
fund, since these shares were available for purchase only when the 1%
deferred sales charge was still in effect. If you redeem by check from
Select Cash Reserves, and the amount of the check is greater than the value
of your account, your check will be returned to you and you may be subject
to extra charges.
FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing
historical account documents, that are beyond the normal scope of its
services.
FDC collects the proceeds from each fund's 3% sales charge and may pay a
portion of them to securities dealers who have sold the fund's shares, or
to others, including banks and other financial institutions (qualified
recipients), under special arrangements in connection with FDC's sales
activities. The sales charge paid to qualified recipients is 1.50% of a
fund's offering price.
FDC may, at its own expense, provide promotional incentives to qualified
recipients who support the sale of shares of the funds without
reimbursement from the funds. In some instances, these incentives may be
offered only to certain institutions whose representatives provide services
in connection with the sale or expected sale of significant amounts of
shares.
EXCHANGE RESTRICTIONS
As a shareholder, you have the privilege of exchanging shares of a fund for
shares of other Fidelity funds. However, you should note the following:
(small solid bullet) The fund you are exchanging into must be available for
sale in your state.
(small solid bullet) You may only exchange between accounts that are
registered in the same name, address, and taxpayer identification number.
(small solid bullet) Before exchanging into a fund, read its prospectus.
(small solid bullet) If you exchange into a fund with a sales charge, you
pay the percentage-point difference between that fund's sales charge and
any sales charge you have previously paid in connection with the shares you
are exchanging. For example, if you had already paid a sales charge of 2%
on your shares and you exchange them into a fund with a 3% sales charge,
you would pay an additional 1% sales charge.
(small solid bullet) Exchanges may have tax consequences for you.
(small solid bullet) Although there is no limit on the number of exchanges
you may make between the Select funds, the funds reserve the right to enact
limitations in the future. Because excessive trading can hurt fund
performance and shareholders, each fund reserves the right to temporarily
or permanently terminate the exchange privilege of any investor who makes
more than four exchanges out of the Select funds to other Fidelity funds
per calendar year. Accounts under common ownership or control, including
accounts with the same taxpayer identification number, will be counted
together for purposes of the four exchange limit.
(small solid bullet) Each fund reserves the right to reject exchange
purchases in excess of 1% of its net assets or $1 million, whichever is
less. For purposes of this policy, accounts under common ownership or
control will be aggregated.
(small solid bullet) Exchange limitations may be modified for accounts in
certain institutional retirement plans to conform to plan exchange limits
and Department of Labor regulations. See your plan materials for further
information.
(small solid bullet) Each fund reserves the right to refuse exchange
purchases by any person or group if, in FMR's judgment, the fund would be
unable to invest the money effectively in accordance with its investment
objective and policies, or would otherwise potentially be adversely
affected.
(small solid bullet) Your exchanges may be restricted or refused if a fund
receives or anticipates simultaneous orders affecting significant portions
of the fund's assets. In particular, a pattern of exchanges that coincides
with a "market timing" strategy may be disruptive to a fund.
(small solid bullet) For cash management purposes, up to three business
days may pass before exchange proceeds are paid from one Select fund to
another, or to another Fidelity equity fund. Exchange proceeds are recorded
in your shareholder account when the transaction occurs. Therefore, when
you exchange from a stock fund to the money market fund, you will earn
money market dividends immediately. When you exchange from the money market
fund to a stock fund, you will not earn money market dividends during the
three business-day period. This policy could increase the volatility of the
money market fund's yield.
Although the funds will attempt to give you prior notice whenever they are
reasonably able to do so, they may impose these restrictions at any time.
The funds reserve the right to terminate or modify the exchange privilege
in the future.
OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose
fees of up to 1.00% on purchases, administrative fees of up to $7.50
and redemption fees of up to 1.50% on exchanges. Check each fund's
prospectus for details.
SALES CHARGE REDUCTIONS AND WAIVERS
REDUCTIONS. Each stock fund's sales charge may be reduced if you invest
directly with Fidelity or through prototype or prototype-like retirement
plans sponsored by FMR or FMR Corp. The amount you invest, plus the value
of your account, must fall within the ranges shown below. However,
purchases made with assistance or intervention from a financial
intermediary are not eligible. Call Fidelity to see if your purchase
qualifies.
<TABLE>
<CAPTION>
<S> <C> <C>
Sales Charge
Ranges As a % of Offering Price As an approximate % of net amount invested
$0 - 249,999 3.00% 3.09%
$250,000 - 499,999 2.00% 2.04%
$500,000 - 999,999 1.00% 1.01%
$1,000,000 or more none none
</TABLE>
The sales charge for the stock funds and the money market fund will also be
reduced by the percentage of any sales charge you previously paid on
investments in other Fidelity funds (not including Fidelity's Foreign
Currency Funds). Similarly, your shares carry credit for any sales charge
you would have paid if the reductions in the table above had not existed.
These sales charge credits only apply to purchases made in one of the ways
listed below, and only if you continuously owned Fidelity fund shares or a
Fidelity brokerage core account, or participated in The CORPORATEplan for
Retirement Program.
1. By exchange from another Fidelity fund.
2. With proceeds of a transaction within a Fidelity brokerage core account,
including any free credit balance, core money market fund, or margin
availability, to the extent such proceeds were derived from redemption
proceeds from another Fidelity fund.
3. With redemption proceeds from one of Fidelity's Foreign Currency Funds,
if the Foreign Currency Fund shares were originally purchased with
redemption proceeds from a Fidelity fund.
4. Through the Directed Dividends Option (see page ).
5. By participants in The CORPORATEplan for Retirement Program when shares
are purchased through plan-qualified loan repayments, and for exchanges
into and out of the Managed Income Portfolio.
WAIVERS. A fund's sales charge will not apply:
1. If you buy shares as part of an employee benefit plan having more than
200 eligible employees or a minimum of $3 million in plan assets invested
in Fidelity mutual funds.
2. T o shares in a Fidelity account purchased with the proceeds of a
distribution from an employee benefit plan, provided that at the time of
the distribution, the employer or its affiliate maintained a plan that both
qualified for waiver (1) above and had at least some of its assets invested
in Fidelity-managed products. (Distributions transferred to an IRA
account must be transferred within 60 days from the date of the
distribution. All other distributions must be transferred directly into a
Fidelity account).
3. If you are a charitable organization (as defined for purposes of Section
501(c)(3) of the Internal Revenue Code) investing $100,000 or more.
4. If you purchase shares for a charitable remainder trust or life income
pool established for the benefit of a charitable organization (as defined
f or purposes of Section 501(c)(3) of the Internal Revenue Code).
5. If you are an investor participating in the Fidelity Trust Portfolios
program.
6. To shares purchased by a mutual fund for which FMR or an affiliate
serves as investment manager.
7. To shares purchased through Portfolio Advisory Services or Fidelity
Charitable Advisory Services.
8. If you are a current or former Trustee or officer of a Fidelity fund or
a current or retired officer, director, or regular employee of FMR Corp. or
Fidelity International Limited or their direct or indirect
subsidiaries (a Fidelity Trustee or employee), the spouse of a Fidelity
Trustee or employee, a Fidelity Trustee or employee acting as custodian for
a minor child, or a person acting as trustee of a trust for the sole
benefit of the minor child of a Fidelity Trustee or employee.
9. If you are a bank trust officer, registered representative, or other
employee of a qualified recipient, as defined on page .
These waivers must be qualified through FDC in advance. More detailed
information about waivers (1), (2), and (5) is contained in the
Statement of Additional Information. A representative of your plan or
organization should call Fidelity for more information.
APPENDIX A
AIR TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
AIR TRANSPORTATION -20.6 29.07 26.33 -18.1 37.06 6.57% 30.89 -21.74 59.54 1.25%
5% % % 8% % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -20.65
Row: 3, Col: 1, Value: 29.07
Row: 4, Col: 1, Value: 26.33
Row: 5, Col: 1, Value: -18.18
Row: 6, Col: 1, Value: 37.06
Row: 7, Col: 1, Value: 6.57
Row: 8, Col: 1, Value: 30.89
Row: 9, Col: 1, Value: -21.74
Row: 10, Col: 1, Value: 59.54
Row: 11, Col: 1, Value: 1.25
(LARGE SOLID BOX) AIR TRANSPORTATION
AMERICAN GOLD
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
AMERICAN GOLD 40.50 -12.4 22.04 -17.2 -6.14 -3.09 78.68 -15.46 11.20 19.92
% 5% % 0% % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 40.5
Row: 3, Col: 1, Value: -12.45
Row: 4, Col: 1, Value: 22.04
Row: 5, Col: 1, Value: -17.2
Row: 6, Col: 1, Value: -6.14
Row: 7, Col: 1, Value: -3.09
Row: 8, Col: 1, Value: 78.67999999999999
Row: 9, Col: 1, Value: -15.46
Row: 10, Col: 1, Value: 11.2
Row: 11, Col: 1, Value: 19.92
(LARGE SOLID BOX) AMERICAN GOLD
AUTOMOTIVE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
AUTOMOTIVE 6.54% 20.06 4.10% -6.72 37.33 41.61 35.38 -12.75 13.43 16.07
% % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 6.54
Row: 3, Col: 1, Value: 20.06
Row: 4, Col: 1, Value: 4.1
Row: 5, Col: 1, Value: -6.72
Row: 6, Col: 1, Value: 37.33
Row: 7, Col: 1, Value: 41.61
Row: 8, Col: 1, Value: 35.38
Row: 9, Col: 1, Value: -12.75
Row: 10, Col: 1, Value: 13.43
Row: 11, Col: 1, Value: 16.07
(LARGE SOLID BOX) AUTOMOTIVE
BIOTECHNOLOGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
BIOTECHNOLOGY -3.37 4.12% 43.93 44.35 99.05 -10.3 0.70% -18.18 49.10 5.61%
% % % % 4% % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -3.37
Row: 3, Col: 1, Value: 4.119999999999999
Row: 4, Col: 1, Value: 43.93
Row: 5, Col: 1, Value: 44.34999999999999
Row: 6, Col: 1, Value: 99.05
Row: 7, Col: 1, Value: -10.34
Row: 8, Col: 1, Value: 0.7000000000000001
Row: 9, Col: 1, Value: -18.18
Row: 10, Col: 1, Value: 49.1
Row: 11, Col: 1, Value: 5.609999999999999
(LARGE SOLID BOX) BIOTECHNOLOGY
BROKERAGE AND INVESTMENT MANAGEMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
BROKERAGE AND INVESTMENT -36.8 18.55 14.06 -16.1 82.26 5.12% 49.33 -17.27 23.59 39.66
MANAGEMENT 5% % % 8% % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -36.84999999999999
Row: 3, Col: 1, Value: 18.55
Row: 4, Col: 1, Value: 14.06
Row: 5, Col: 1, Value: -16.18
Row: 6, Col: 1, Value: 82.26000000000001
Row: 7, Col: 1, Value: 5.119999999999999
Row: 8, Col: 1, Value: 49.33
Row: 9, Col: 1, Value: -17.27
Row: 10, Col: 1, Value: 23.59
Row: 11, Col: 1, Value: 39.66
(LARGE SOLID BOX) BROKERAGE AND INVESTMENT
MANAGEMENT
CHEMICALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
CHEMICALS 14.82 20.96 17.31 -4.13 38.66 8.90% 12.76 14.78 21.45 21.52
% % % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 14.82
Row: 3, Col: 1, Value: 20.96
Row: 4, Col: 1, Value: 17.31
Row: 5, Col: 1, Value: -4.13
Row: 6, Col: 1, Value: 38.66
Row: 7, Col: 1, Value: 8.9
Row: 8, Col: 1, Value: 12.76
Row: 9, Col: 1, Value: 14.78
Row: 10, Col: 1, Value: 21.45
Row: 11, Col: 1, Value: 21.52
(LARGE SOLID BOX) CHEMICALS
COMPUTERS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
COMPUTERS -6.35 -5.05 6.84% 18.41 30.75 21.96 28.87 20.45 51.83 31.62
% % % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -6.35
Row: 3, Col: 1, Value: -5.05
Row: 4, Col: 1, Value: 6.84
Row: 5, Col: 1, Value: 18.41
Row: 6, Col: 1, Value: 30.75
Row: 7, Col: 1, Value: 21.96
Row: 8, Col: 1, Value: 28.87
Row: 9, Col: 1, Value: 20.45
Row: 10, Col: 1, Value: 51.83
Row: 11, Col: 1, Value: 31.62
(LARGE SOLID BOX) COMPUTERS
CONSTRUCTION AND HOUSING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
CONSTRUCTION AND HOUSING -12.4 29.19 16.60 -9.64 41.31 18.71 33.61 -15.94 28.78 13.21
2% % % % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -12.42
Row: 3, Col: 1, Value: 29.19
Row: 4, Col: 1, Value: 16.6
Row: 5, Col: 1, Value: -9.639999999999999
Row: 6, Col: 1, Value: 41.31
Row: 7, Col: 1, Value: 18.71
Row: 8, Col: 1, Value: 33.61
Row: 9, Col: 1, Value: -15.94
Row: 10, Col: 1, Value: 28.78
Row: 11, Col: 1, Value: 31.21
(LARGE SOLID BOX) CONSTRUCTION AND HOUSING
CONSUMER INDUSTRIES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1991 1992 1993 1994 1995 199 6
CONSUMER INDUSTRIES 38.53 8.56% 24.67 -7.07 28.30 13.15
% % % % %
S&P 500 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % %
Consumer Price Index 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: 38.53
Row: 7, Col: 1, Value: 8.56
Row: 8, Col: 1, Value: 24.67
Row: 9, Col: 1, Value: -7.07
Row: 10, Col: 1, Value: 28.3
Row: 11, Col: 1, Value: 13.15
(LARGE SOLID BOX) CONSUMER INDUSTRIES
DEFENSE AND AEROSPACE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
DEFENSE AND AEROSPACE -23.2 4.32% 8.81% -4.58 26.93 0.00% 28.86 1.76% 47.36 25.03
0% % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -23.2
Row: 3, Col: 1, Value: 4.319999999999999
Row: 4, Col: 1, Value: 8.81
Row: 5, Col: 1, Value: -4.58
Row: 6, Col: 1, Value: 26.93
Row: 7, Col: 1, Value: 0.0
Row: 8, Col: 1, Value: 28.86
Row: 9, Col: 1, Value: 1.76
Row: 10, Col: 1, Value: 47.36
Row: 11, Col: 1, Value: 25.03
(LARGE SOLID BOX) DEFENSE AND AEROSPACE
DEVELOPING COMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1991 199 2 199 3 199 4 199 5 199 6
DEVELOPING COMMUNICATIONS 61.39 17.21 31.77 15.14 17.37 14.55
% % % % % %
S&P 500 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % %
Consumer Price Index 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: 61.39
Row: 7, Col: 1, Value: 17.21
Row: 8, Col: 1, Value: 31.77
Row: 9, Col: 1, Value: 15.14
Row: 10, Col: 1, Value: 17.37
Row: 11, Col: 1, Value: 14.55
(LARGE SOLID BOX) DEVELOPING COMMUNICATIONS
ELECTRONICS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
ELECTRONICS -13.48 -8.47 15.67 5.81% 35.29 27.44 32.08 17.17 68.97 41.72
% % % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -13.48
Row: 3, Col: 1, Value: -8.470000000000001
Row: 4, Col: 1, Value: 15.67
Row: 5, Col: 1, Value: 5.81
Row: 6, Col: 1, Value: 35.29000000000001
Row: 7, Col: 1, Value: 27.44
Row: 8, Col: 1, Value: 32.08
Row: 9, Col: 1, Value: 17.17
Row: 10, Col: 1, Value: 68.97
Row: 11, Col: 1, Value: 41.72000000000001
(LARGE SOLID BOX) ELECTRONICS
ENERGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
ENERGY -1.80 15.94 42.83 -4.49 0.04% -2.39 19.15 0.41% 21.38 32.47
% % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -1.8
Row: 3, Col: 1, Value: 15.94
Row: 4, Col: 1, Value: 42.83
Row: 5, Col: 1, Value: -4.49
Row: 6, Col: 1, Value: 0.04
Row: 7, Col: 1, Value: -2.39
Row: 8, Col: 1, Value: 19.15
Row: 9, Col: 1, Value: 0.41
Row: 10, Col: 1, Value: 21.38
Row: 11, Col: 1, Value: 32.47
(LARGE SOLID BOX) ENERGY
ENERGY SERVICE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
ENERGY SERVICE -11.8 -0.40 59.44 1.75% -23.4 3.43% 20.96 0.57% 40.87 49.08
0% % % 8% % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 11.8
Row: 3, Col: 1, Value: -0.4
Row: 4, Col: 1, Value: 59.44
Row: 5, Col: 1, Value: 1.75
Row: 6, Col: 1, Value: -23.48
Row: 7, Col: 1, Value: 3.43
Row: 8, Col: 1, Value: 20.96
Row: 9, Col: 1, Value: 0.5700000000000001
Row: 10, Col: 1, Value: 40.87
Row: 11, Col: 1, Value: 49.08
(LARGE SOLID BOX) ENERGY SERVICE
ENVIRONMENTAL SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns 1990 199 1 199 2 199 3 199 4 199 5 199 6
ENVIRONMENTAL SERVICES -2.48 7.66% -1.37 -0.62 -9.55 26.13 15.61
% % % % % %
S&P 500 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % %
Consumer Price Index 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: -2.48
Row: 6, Col: 1, Value: 7.659999999999999
Row: 7, Col: 1, Value: -1.37
Row: 8, Col: 1, Value: -0.6200000000000001
Row: 9, Col: 1, Value: -9.550000000000001
Row: 10, Col: 1, Value: 26.13
Row: 11, Col: 1, Value: 15.61
(LARGE SOLID BOX) ENVIRONMENTAL SERVICES
FINANCIAL SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
FINANCIAL SERVICES -16.5 12.01 19.34 -24.3 61.63 42.82 17.55 -3.65 47.34 32.12
4% % % 3% % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -16.54
Row: 3, Col: 1, Value: 12.01
Row: 4, Col: 1, Value: 19.34
Row: 5, Col: 1, Value: -24.33
Row: 6, Col: 1, Value: 61.63
Row: 7, Col: 1, Value: 42.82
Row: 8, Col: 1, Value: 17.55
Row: 9, Col: 1, Value: -3.65
Row: 10, Col: 1, Value: 47.34
Row: 11, Col: 1, Value: 32.12
(LARGE SOLID BOX) FINANCIAL SERVICES
FOOD AND AGRICULTURE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
FOOD AND AGRICULTURE 7.51% 26.77 38.87 9.33% 34.09 6.03% 8.82% 6.09% 36.64 13.35
% % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 7.561
Row: 3, Col: 1, Value: 26.77
Row: 4, Col: 1, Value: 38.87
Row: 5, Col: 1, Value: 9.33
Row: 6, Col: 1, Value: 34.09
Row: 7, Col: 1, Value: 6.03
Row: 8, Col: 1, Value: 8.82
Row: 9, Col: 1, Value: 6.09
Row: 10, Col: 1, Value: 36.64
Row: 11, Col: 1, Value: 13.35
(LARGE SOLID BOX) FOOD AND AGRICULTURE
HEALTH CARE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
HEALTH CARE -0.64 8.83% 42.49 24.32 83.69 -17.4 2.42% 21.46 45.86 15.46
% % % % 3% % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -0.6400000000000001
Row: 3, Col: 1, Value: 8.83
Row: 4, Col: 1, Value: 42.49
Row: 5, Col: 1, Value: 24.32
Row: 6, Col: 1, Value: 83.69
Row: 7, Col: 1, Value: -17.43
Row: 8, Col: 1, Value: 2.42
Row: 9, Col: 1, Value: 21.46
Row: 10, Col: 1, Value: 45.86
Row: 11, Col: 1, Value: 15.46
(LARGE SOLID BOX) HEALTH CARE
HOME FINANCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
HOME FINANCE -7.95 18.50 9.33% -15.0 64.61 57.85 27.29 2.68% 53.49 36.88
% % 8% % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -7.95
Row: 3, Col: 1, Value: 18.5
Row: 4, Col: 1, Value: 9.33
Row: 5, Col: 1, Value: -15.08
Row: 6, Col: 1, Value: 64.61
Row: 7, Col: 1, Value: 57.84999999999999
Row: 8, Col: 1, Value: 27.29
Row: 9, Col: 1, Value: 2.68
Row: 10, Col: 1, Value: 53.49
Row: 11, Col: 1, Value: 36.88
(LARGE SOLID BOX) HOME FINANCE
INDUSTRIAL EQUIPMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
INDUSTRIAL EQUIPMENT -9.25 4.89 % 17.95 -15.5 26.84 11.34 43.33 3.13 % 27.81 26.71
% % 1 % % % % % %
S&P 500 5.10 % 16.61 31.69 -3.10 30.47 7.62 % 10.08 1.32 % 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -9.25
Row: 3, Col: 1, Value: 4.89
Row: 4, Col: 1, Value: 17.95
Row: 5, Col: 1, Value: -15.51
Row: 6, Col: 1, Value: 26.84
Row: 7, Col: 1, Value: 11.34
Row: 8, Col: 1, Value: 43.33
Row: 9, Col: 1, Value: 3.13
Row: 10, Col: 1, Value: 27.81
Row: 11, Col: 1, Value: 26.71
(LARGE SOLID BOX) INDUSTRIAL EQUIPMENT
INDUSTRIAL MATERIALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
INDUSTRIAL MATERIALS 15.65 10.84 4.45 % -17.1 35.81 12.37 21.38 8.19 % 15.39 14.01
% % 7 % % % % % %
S&P 500 5.10 % 16.61 31.69 -3.10 30.47 7.62 % 10.08 1.32 % 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 15.65
Row: 3, Col: 1, Value: 10.84
Row: 4, Col: 1, Value: 4.45
Row: 5, Col: 1, Value: -17.17
Row: 6, Col: 1, Value: 35.81
Row: 7, Col: 1, Value: 12.37
Row: 8, Col: 1, Value: 21.38
Row: 9, Col: 1, Value: 8.19
Row: 10, Col: 1, Value: 15.39
Row: 11, Col: 1, Value: 14.01
(LARGE SOLID BOX) INDUSTRIAL MATERIALS
INSURANCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 199 1 199 2 199 3 199 4 199 5 199 6
INSURANCE -12.1 17.40 37.83 -9.81 36.68 22.50 8.18 % -0.35 34.81 23.71
6 % % % % % % % % %
S&P 500 5.10 % 16.61 31.69 -3.10 30.47 7.62 % 10.08 1.32 % 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -12.16
Row: 3, Col: 1, Value: 17.4
Row: 4, Col: 1, Value: 37.83
Row: 5, Col: 1, Value: 9.81
Row: 6, Col: 1, Value: 36.68
Row: 7, Col: 1, Value: 22.5
Row: 8, Col: 1, Value: 8.18
Row: 9, Col: 1, Value: -0.35
Row: 10, Col: 1, Value: 34.81
Row: 11, Col: 1, Value: 23.71
(LARGE SOLID BOX) INSURANCE
LEISURE
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total returns
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
LEISURE
5.70 % 26.01 31.21 -22.2 32.94 16.23 39.55 -6.84 26.96 13.41
% % 9 % % % % % % %
S&P 500
5.10 % 16.61 31.69 -3.10 30.47 7.62 % 10.08 1.32 % 37.58 22.96
% % % % % % %
Consumer Price Index
4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 5.7
Row: 3, Col: 1, Value: 26.01
Row: 4, Col: 1, Value: 31.21
Row: 5, Col: 1, Value: -22.29
Row: 6, Col: 1, Value: 32.94
Row: 7, Col: 1, Value: 16.23
Row: 8, Col: 1, Value: 39.55
Row: 9, Col: 1, Value: -6.84
Row: 10, Col: 1, Value: 26.96
Row: 11, Col: 1, Value: 13.41
(LARGE SOLID BOX) LEISURE
MEDICAL DELIVERY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
MEDICAL DELIVERY -12.0 15.78 58.02 16.26 77.83 -13.1 5.52% 19.84 32.18 11.00
8% % % % % 9% % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -12.08
Row: 3, Col: 1, Value: 15.78
Row: 4, Col: 1, Value: 58.02
Row: 5, Col: 1, Value: 16.26
Row: 6, Col: 1, Value: 77.83
Row: 7, Col: 1, Value: -13.19
Row: 8, Col: 1, Value: 5.52
Row: 9, Col: 1, Value: 19.84
Row: 10, Col: 1, Value: 32.18
Row: 11, Col: 1, Value: 11.0
(LARGE SOLID BOX) MEDICAL DELIVERY
MULTIMEDIA
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
MULTIMEDIA 19.93 26.85 32.54 -26.2 37.85 21.50 38.02 4.00% 33.67 1.07%
% % % 1% % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 19.93
Row: 3, Col: 1, Value: 26.85
Row: 4, Col: 1, Value: 32.54
Row: 5, Col: 1, Value: -26.21
Row: 6, Col: 1, Value: 37.84999999999999
Row: 7, Col: 1, Value: 21.5
Row: 8, Col: 1, Value: 38.02
Row: 9, Col: 1, Value: 4.0
Row: 10, Col: 1, Value: 33.67
Row: 11, Col: 1, Value: 1.07
(LARGE SOLID BOX) MULTIMEDIA
NATURAL GAS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
<C> <C>
Calendar year total returns 1994 1995 1996
NATURAL GAS -6.84 30.38 34.32
% % %
S&P 500 1.32% 37.58 22.96
% %
Consumer Price Index 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: -6.84
Row: 10, Col: 1, Value: 30.38
Row: 11, Col: 1, Value: 34.32
(LARGE SOLID BOX) NATURAL GAS
PAPER AND FOREST PRODUCTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
PAPER AND FOREST PRODUCTS 3.94% 6.77% 4.08% -15.1 34.77 12.05 18.55 14.14 21.91 7.07%
1% % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 3.94
Row: 3, Col: 1, Value: 6.77
Row: 4, Col: 1, Value: 4.08
Row: 5, Col: 1, Value: -15.11
Row: 6, Col: 1, Value: 34.77
Row: 7, Col: 1, Value: 12.05
Row: 8, Col: 1, Value: 18.55
Row: 9, Col: 1, Value: 14.14
Row: 10, Col: 1, Value: 21.91
Row: 11, Col: 1, Value: 7.07
(LARGE SOLID BOX) PAPER AND FOREST PRODUCTS
PRECIOUS METALS AND MINERALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
PRECIOUS METALS AND
MINERALS 37.51 -23.8 32.16 -21.0 1.54% -21.8 111.62 -1.14 -3.34 5.42%
% 6% % 7% 7% % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 37.51
Row: 3, Col: 1, Value: -23.86
Row: 4, Col: 1, Value: 32.16
Row: 5, Col: 1, Value: -21.07
Row: 6, Col: 1, Value: 1.54
Row: 7, Col: 1, Value: -21.87
Row: 8, Col: 1, Value: 111.62
Row: 9, Col: 1, Value: -1.14
Row: 10, Col: 1, Value: -3.34
Row: 11, Col: 1, Value: 5.42
(LARGE SOLID BOX) PRECIOUS METALS AND MINERALS
REGIONAL BANKS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
REGIONAL BANKS -3.05 25.71 26.65 -20.6 65.79 48.52 11.17 0.22% 46.77 35.89
% % % 7% % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -3.05
Row: 3, Col: 1, Value: 25.71
Row: 4, Col: 1, Value: 26.65
Row: 5, Col: 1, Value: -20.67
Row: 6, Col: 1, Value: 65.79000000000001
Row: 7, Col: 1, Value: 48.52
Row: 8, Col: 1, Value: 11.17
Row: 9, Col: 1, Value: 0.22
Row: 10, Col: 1, Value: 46.77
Row: 11, Col: 1, Value: 35.89
(LARGE SOLID BOX) REGIONAL BANKS
RETAILING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
RETAILING -7.36 38.71 29.53 -5.03 68.13 22.08 13.03 -5.01 11.98 20.86
% % % % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -7.359999999999999
Row: 3, Col: 1, Value: 38.71
Row: 4, Col: 1, Value: 29.53
Row: 5, Col: 1, Value: -5.03
Row: 6, Col: 1, Value: 68.13
Row: 7, Col: 1, Value: 22.08
Row: 8, Col: 1, Value: 13.03
Row: 9, Col: 1, Value: -5.01
Row: 10, Col: 1, Value: 11.98
Row: 11, Col: 1, Value: 20.86
(LARGE SOLID BOX) RETAILING
SOFTWARE AND COMPUTER SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
SOFTWARE AND COMPUTER
SERVICES 9.44% 9.05% 12.05 0.86% 45.84 35.54 32.73 0.39% 46.26 21.77
% % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 9.44
Row: 3, Col: 1, Value: 9.050000000000001
Row: 4, Col: 1, Value: 12.05
Row: 5, Col: 1, Value: 0.8600000000000001
Row: 6, Col: 1, Value: 45.84
Row: 7, Col: 1, Value: 35.54
Row: 8, Col: 1, Value: 32.73
Row: 9, Col: 1, Value: 0.39
Row: 10, Col: 1, Value: 46.26000000000001
Row: 11, Col: 1, Value: 21.77
(LARGE SOLID BOX) SOFTWARE AND COMPUTER
SERVICES
TECHNOLOGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
TECHNOLOGY -11.7 -2.70 16.99 10.50 58.97 8.72% 28.65 11.13 43.81 15.82
8% % % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -11.78
Row: 3, Col: 1, Value: -2.7
Row: 4, Col: 1, Value: 16.99
Row: 5, Col: 1, Value: 10.5
Row: 6, Col: 1, Value: 58.97
Row: 7, Col: 1, Value: 8.719999999999999
Row: 8, Col: 1, Value: 28.65
Row: 9, Col: 1, Value: 11.13
Row: 10, Col: 1, Value: 43.81
Row: 11, Col: 1, Value: 15.82
(LARGE SOLID BOX) TECHNOLOGY
TELECOMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
TELECOMMUNICATIONS 15.21 27.76 50.88 -16.4 30.85 15.32 29.72 4.32% 29.66 5.40%
% % % 0% % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 15.21
Row: 3, Col: 1, Value: 27.76
Row: 4, Col: 1, Value: 50.88
Row: 5, Col: 1, Value: -16.4
Row: 6, Col: 1, Value: 30.85
Row: 7, Col: 1, Value: 15.32
Row: 8, Col: 1, Value: 29.72
Row: 9, Col: 1, Value: 4.319999999999999
Row: 10, Col: 1, Value: 29.66
Row: 11, Col: 1, Value: 5.4
(LARGE SOLID BOX) TELECOMMUNICATIONS
TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
TRANSPORTATION -17.4 38.45 28.49 -21.5 54.14 23.79 29.32 3.87% 15.17 9.50%
8% % % 9% % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -17.48
Row: 3, Col: 1, Value: 38.45
Row: 4, Col: 1, Value: 28.49
Row: 5, Col: 1, Value: -21.59
Row: 6, Col: 1, Value: 54.14
Row: 7, Col: 1, Value: 23.79
Row: 8, Col: 1, Value: 29.32
Row: 9, Col: 1, Value: 3.87
Row: 10, Col: 1, Value: 15.17
Row: 11, Col: 1, Value: 9.5
(LARGE SOLID BOX) TRANSPORTATION
UTILITIES GROWTH
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Calendar year total
returns 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996
UTILITIES GROWTH -9.26 16.46 39.02 0.55% 21.03 10.59 12.54 -7.41 34.39 11.37
% % % % % % % % %
S&P 500 5.10% 16.61 31.69 -3.10 30.47 7.62% 10.08 1.32% 37.58 22.96
% % % % % % %
Consumer Price Index 4.43% 4.42% 4.65% 6.11% 3.06% 2.90% 2.75% 2.67% 2.54% 3.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -9.26
Row: 3, Col: 1, Value: 16.46
Row: 4, Col: 1, Value: 39.02
Row: 5, Col: 1, Value: 0.55
Row: 6, Col: 1, Value: 21.03
Row: 7, Col: 1, Value: 10.59
Row: 8, Col: 1, Value: 12.54
Row: 9, Col: 1, Value: -7.41
Row: 10, Col: 1, Value: 34.39
Row: 11, Col: 1, Value: 11.37
(LARGE SOLID BOX) UTILITIES GROWTH
FIDELITY SELECT PORTFOLIOS(registered trademark)
STATEMENT OF ADDITIONAL INFORMATION
APRIL 29, 1997
This Statement of Additional Information (SAI) is not a prospectus but
should be read in conjunction with the funds' current Prospectus (dated
April 29 , 1997). Please retain this document for future reference.
The funds' Annual Report is a separate document supplied with this SAI. To
obtain a free additional copy of the Prospectus or an Annual Report, please
call Fidelity at 1-800-544-8888.
TABLE OF CONTENTS PAGE
Investment Policies and Limitations
Portfolio Transactions
Valuation
Performance
Additional Purchase and Redemption Information
Distributions and Taxes
FMR
Trustees and Officers
Management Contracts
Contracts with FMR Affiliates
Description of the Trust
Financial Statements
Appendix
INVESTMENT ADVISER
Fidelity Management & Research Company (FMR)
INVESTMENT SUB-ADVISER
Fidelity Management & Research (U.K.) Inc. (FMR U.K.) (stock funds)
Fidelity Management & Research (Far East) Inc. (FMR Far East) (stock funds)
FMR Texas Inc. ( FMR Texas ) (money market fund)
DISTRIBUTOR
Fidelity Distributors Corporation (FDC)
TRANSFER AGENT
Fidelity Service Company, Inc. ( FSC )
SEL-ptb- 0497
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the
Prospectus. Unless otherwise noted, whenever an investment policy or
limitation states a maximum percentage of a fund's assets that may be
invested in any security or other asset, or sets forth a policy regarding
quality standards, such standard or percentage limitation will be
determined immediately after and as a result of the fund's acquisition of
such security or other asset. Accordingly, any subsequent change in values,
net assets, or other circumstances will not be considered when determining
whether the investment complies with the fund's investment policies and
limitations.
T he fun d's fundamental investment policies and limitations cannot be
changed without approval by a "majority of the outstanding voting
securities" (as defined in the Investment Company Act of 1940 (1940
Act) ) of the fund. However, except for the fundamental
investment limitations listed below, the investment policies and
limitations described in this SAI are not fundamental and may be
changed without shareholder approval.
THE FOLLOWING ARE EACH STOCK FUND'S (EXCEPT CYCLICAL INDUSTRIES
PORTFOLIO AND NATURAL RESOURCES PORTFOLIO) FUNDAMENTAL INVESTMENT
LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that a fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days ( not including Sundays and
holidays) to the extent necessary to comply with the 33% limitation;
(3) underwrite securities issued by others, except to the extent that a
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase or sell the securities of any issuer, if, as a result of such
purchase or sale, less than 25% of the assets of the fund would be invested
in the securities of issuers principally engaged in the business activities
having the specific characteristics denoted by the fund;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent a fund from
investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent a
fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities). This limitation does not apply to Precious Metals and
Minerals Portfolio or to American Gold Portfolio (see below); or
(7) lend any security or make any other loan if, as a result, more than 33%
of its total assets would be lent to other parties, but this limitation
does not apply to purchases of debt securities or to repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company with substantially the same
fundamental investment objectives, policies, and limitations as the fund.
ADDITIONAL FUNDA MENT AL INVESTMENT LIMITATIONS OF CERTAIN OF THE
STOCK FUNDS.
THE AMERICAN GOLD PORTFOLIO AND PRECIOUS METALS AND MINERALS PORTFOLIO MAY
NOT:
(1) purchase any precious metal if, as a result, more than 50% of its total
assets would be invested in precious metals; or
(2) purchase or sell physical commodities, provided that the fund may
purchase and sell precious metals, and further provided that the fund may
sell physical commodities acquired as a result of ownership of securities.
The fund may not purchase or sell options, options on futures contracts, or
futures contracts on physical commodities other than precious metals.
THE FINANCIAL SERVICES PORTFOLIO, REGIONAL BANKS PORTFOLIO, AND HOME
FINANCE PORTFOLIO MAY NOT:
(1) with respect to 75% of total assets, purchase the securities of any
issuer (other than securities issued or guaranteed by the U.S. government,
or any of its agencies or instrumentalities) if, as a result, more than 5%
of its total assets would be invested in the securities of that issuer;
(2) purchase the securities of any issuer (except securities issued or
guaranteed by the United States government or its agencies or
instrumentalities) if, as a result, more than 10% of the outstanding voting
securities of that issuer would be owned by the fund.
THE FOLLOWING ARE EACH STOCK FUND'S (E XCEPT CYCLICAL INDUSTRIES
PO RTFOLIO AND NATURAL RESOURCES PORTFOLIO) NON-FUNDAMENTAL LIMITATIONS
WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) For each fund except Financial Services, Home Finance and Regional
Banks, in order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in kind and
amount to the securities sold short, and provided that transactions in
futures contracts and options are not deemed to constitute selling
securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that a fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) Th e fund does not currently intend to hedge more than 40% of
its total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an affiliate
serves as investment adviser or (b) by engaging in reverse repurchase
agreements with any party (reverse repurchase agreements are treated as
borrowings for purposes of fundamental investment limitation (2) for all
stock funds). Each fund will not purchase any security while borrowings
representing more than 5% of its total assets are outstanding. Each fund
will not borrow from other funds advised by FMR or its affiliates if total
outstanding borrowings immediately after such borrowing would exceed 15% of
the fund's total assets.
(vi) Th e fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to legal
or contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vii) Th e fund (except American Gold Portfolio and Precious Metals
and Minerals Portfolio) will not purchase physical commodities, or purchase
or sell futures contracts based on physical commodities.
(viii) American Gold Portfolio and Precious Metals and Minerals
Portfolio will each limit investment in precious metals bullion or coins to
no more than 25% of its total assets.
(ix) The fund does not currently intend to lend assets other than
securities to other parties, except (a) by lending money (up to 5% of a
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser, or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
(x) Th e fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company with
substantially the same fundamental investment objectives, policies, and
limitations as the funds.
For purposes of limitation (i), Subchapter M generally requires a fund
to invest no more than 25% of its total assets in securities of any one
issuer and to invest at least 50 % of its total assets so that no more than
5% of the fund's total assets are invested in securities of any one issuer.
However, Subchapter M allows unlimited investments in cash, cash items,
government securities (as defined in Subchapter M) and securities of other
investment companies. These tax requirements are generally applied at the
end of each quarter of the fund's taxable year.
THE FOLLOWING ARE CYCLICAL INDUSTRIES PORTFOLIO'S AND NATURAL RESOURCES
PORTFOLIO'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR
ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33% limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than 25% of
the fund's total assets would be invested in the securities of issuers
principally engaged in the business activities having the specific
characteristics denoted by the fund;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities). This limitation does not apply to Natural Resources Portfolio
(see below); or
(7) lend any security or make any other loan if, as a result, more than 33%
of its total assets would be lent to other parties, but this limitation
does not apply to purchases of debt securities or to repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment policy
or limitation, invest all of its assets in the securities of a single
open-end management investment company managed by Fidelity Management &
Research Company or an affiliate or successor with substantially the same
fundamental investment objective, policies, and limitations as the fund.
NATURAL RESOURCES PORTFOLIO MAY NOT:
(1) purchase or sell physical commodities other than precious metals,
provided that the fund may sell physical commodities acquired as a result
of ownership of securities or other instruments. This limitation shall not
prevent the fund from purchasing or selling options and futures contracts
or from investing in securities or other instruments backed by physical
commodities.
THE FOLLOWING ARE CYCLICAL INDUSTRIES PORTFOLIO'S AND NATURAL RESOURCES
PORTFOLIO'S NON-FUNDAMENTAL LIMITATIONS WHICH M AY BE CHANGED WITHOUT
S HAREHOLDER APPROVAL.
(i) In order to qualify as a "regulated investment company" under
Subchapter M of the Internal Revenue Code of 1986, as amended, the fund
currently intends to comply with certain diversification limits imposed by
Subchapter M.
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its total
assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(vi) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vii) Natural Resources Portfolio does not currently intend to invest more
than 25% of its total assets in readily marketable precious metals.
(viii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which Fidelity Management & Research Company or an affiliate serves as
investment adviser, or (b) acquiring loans, loan participations, or other
forms of direct debt instruments and, in connection therewith, assuming any
associated unfunded commitments of the sellers. (This limitation does not
apply to purchases of debt securities or to repurchase agreements.)
(ix) The fund does not currently intend to invest all of its assets in the
securities of a single open-end management investment company managed by
Fidelity Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires a fund to
invest no more than 25% of its total assets in securities of any one issuer
and to invest at least 50% of its total assets so that no more than 5% of a
fund's total assets are invested in securities of any one issuer. However,
Subchapter M allows unlimited investments in cash, cash items, government
securities (as defined in Subchapter M) and securities of other investment
companies. These tax requirements are generally applied at the end of each
quarter of a fund's taxable year.
For the stock funds' limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
beginning on page .
SELECT MONEY MARKET PORTFOLIO (MONEY MARKET FUND)
THE FOLLOWING ARE THE FUND' S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) with respect to 75% of the fund's total assets, purchase the securities
of any issuer (other than securities issued or guaranteed by the U.S.
Government or any of its agencies or instrumentalities) if, as a result,
(a) more than 5% of the fund's total assets would be invested in the
securities of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer.
(2) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(3) borrow money, except that the fund may (i) borrow money for temporary
or emergency purposes (not for leveraging or investment) and (ii) engage in
reverse repurchase agreements for any purpose; provided that (i) and (ii)
in combination do not exceed 33% of the fund's total assets (including the
amount borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with the
33% limitation;
(4) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer (other than securities issued or
guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose principal
business activities are in the same industry, except that the fund will
invest more than 25% of its total assets in the financial services
industry;
(6) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(7) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments;
(8) lend any security or make any other loan if, as a result, more than 33%
of its total assets would be lent to other parties, but this limitation
does not apply to purchases of debt securities or to repurchase agreements;
or
(9) invest in companies for the purpose of exercising control or
management.
(10) In addition the fund may, notwithstanding any other fundamental
investment policy or limitation, invest all of its assets in the securities
of a single open-end management investment company with substantially the
same fundamental investment objectives, policies, and limitations as the
fund.
THE FOLLOWING ARE THE FUND' S NON-FUNDAMENTAL LIMITATIONS WHICH MAY
BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) The fund does not currently intend to purchase a security (other than a
security issued or guaranteed by the U.S. Government or any of its agencies
or instrumentalities) if, as a result, more than 5% of its total assets
would be invested in the securities of a single issuer; provided that the
fund may invest up to 25% of its total assets in the first tier securities
of a single issuer for up to three business days. (This limit does not
apply to securities of other open-end investment companies managed by FMR
or a successor or affiliate purchased pursuant to an exemptive order
granted by the SEC).
(ii) The fund does not currently intend to sell securities short, unless it
owns or has the right to obtain securities equivalent in kind and amount to
the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on margin,
except that the fund may obtain such short-term credits as are necessary
for the clearance of transactions, and provided that margin payments in
connection with futures contracts and options on futures contracts shall
not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party. The fund will not purchase any security while borrowings
(excluding reverse repurchase agreements) representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to purchase physical commodities or
purchase or sell futures contracts based on physical commodities.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by lending money (up to 10% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser. (This limitation
does not apply to purchases of debt securities or to repurchase
agreements.)
(viii) The fund does not currently intend to invest all of its assets in
the securities of a single open-end management investment company with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
For the money market fund's policies on quality and maturity, see the
section entitled "Quality and Maturity" on page .
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO AND FINANCIAL SERVICES
PORTFOLIO Rule 12d3-1 under the 1940 Act allows investment
portfolios such as these funds to invest in companies engaged in
securities-related activities subject to certain conditions. Purchases of
securities of a company that derived 15% or less of gross revenues during
its most recent fiscal year from securities-related activities (i.e.,
broker/dealer, underwriting, or investment advisory activities) are subject
only to the same percentage limitations as would apply to any other
security the funds may purchase. Each fund may purchase securities of an
issuer that derived more than 15% of its gross revenues in its most recent
fiscal year from securities-related activities, subject to the following
conditions:
a. the purchase cannot cause more than 5% of the fund's total assets to be
invested in securities of that issuer;
b. for an equity security, the purchase cannot result in the fund owning
more than 5% of the issuer's outstanding securities in that class;
c. for a debt security, the purchase cannot result in the fund owning more
than 10% of the outstanding principal amount of the issuer's debt
securities.
In applying the gross revenue test, an issuer's own securities-related
activities must be combined with its ratable share of securities-related
revenues from enterprises in which it owns a 20% or greater voting or
equity interest. All of the above percentage limitations, as well as the
issuer's gross revenue test, are applicable at the time of purchase. With
respect to warrants, rights, and convertible securities, a determination of
compliance with the above limitations shall be made as though such warrant,
right, or conversion privilege had been exercised. Neither fund will be
required to divest its holdings of a particular issuer when circumstances
subsequent to the purchase cause one of the above conditions to not be met.
The funds are not permitted to acquire any security issued by FMR, FDC, or
any affiliated company of these companies that is a securities-related
business. The purchase of a general partnership interest in a
securities-related business is prohibited.
MULTIMEDIA PORTFOLIO
The Federal Communications Commission (FCC) has certain rules which limit
ownership of corporate broadcast licensees in an effort to assure that no
one person or entity (including mutual funds) exercises an unacceptable
degree of influence or control over broadcast facilities. Current FCC rules
prohibit the fund, together with all other funds advised by FMR, from
holding in the aggregate 10% of the voting stock of more than 20 AM, 20 FM,
or 12 TV broadcast stations. If the officer or director of a broadcast
licensee is a representative of the fund, that licensee must also be taken
into account in determining whether the limitation on the number of
stations has been exceeded. FCC rules also limit investment in multiple
stations serving the same area.
The attribution rules are not applicable to noncommercial educational FM
and TV stations, or to TV stations that are primarily "satellite"
operations. In addition, the rules do not restrict the ownership of a
broadcast licensee if any other person holds more than 50% of the
outstanding voting stock of the licensee. These limitations apply to the
aggregate assets of Multimedia Portfolio and of all funds managed by FMR.
AMERICAN GOLD PORTFOLIO AND PRECIOUS METALS AND MINERALS PORTFOLIO
The American Gold Portfolio and the Precious Metals and Minerals Portfolio
each have the authority to invest a portion of their assets in precious
metals, such as gold, platinum, palladium, and silver. No more than 50% of
either fund's total assets may be invested in precious metals, including
gold bullion or coins.
FMR does not currently intend that either fund will hold gold coins, but
the Trustees reserve the right of the funds to do so in the future.
Transactions in gold coins will be entered into only with prior approval by
the Trustees, prior notice to current shareholders, and provided that
disclosure regarding the nature of such investments is set forth in a
subsequent prospectus that is part of the registration statement declared
effective by the Securities and Exchange Commission (SEC). In
addition, the ability of the funds to hold gold coins may be restricted by
the securities laws and/or regulations of states where the funds' shares
are qualified for sale.
The funds may also consider investments in securities indexed to the price
of gold or other precious metals as an alternative to direct investments in
precious metals.
The Precious Metals and Minerals Portfolio's gold-related investments will
often contain securities of companies located in the Republic of South
Africa, which is a principal producer of gold. Unsettled political and
social conditions in South Africa and its neighboring countries, may from
time to time pose certain risks to the Precious Metals and Minerals
Portfolio's investments in South African issuers. These events could also
have an impact on the American Gold Portfolio through their influence on
the price of gold and related mining securities worldwide.
FUND DESCRIPTIONS
THE STOCK FUNDS INVEST PRIMARILY WITHIN THE INVESTMENT AREAS DESCRIBED
BELOW.
AIR TRANSPORTATION PORTFOLIO: COMPANIES ENGAGED IN THE REGIONAL, NATIONAL
AND INTERNATIONAL MOVEMENT OF PASSENGERS, MAIL, AND FREIGHT VIA AIRCRAFT.
These companies include the major airlines, commuter airlines, air
cargo and express delivery operators, air freight forwarders, aviation
service firms, and manufacturers of aeronautical equipment.
Airline deregulation has substantially diminished the government's role in
the air transport industry while promoting an increased level of
competition. However, regulations and policies of various domestic and
foreign governments can still affect the profitability of individual
carriers as well as the entire industry. In addition to regulations and
competition, the air transport industry is also very sensitive to fuel
price levels and the state of foreign and domestic economies.
AMERICAN GOLD PORTFOLIO: COMPANIES ENGAGED IN EXPLORATION, MINING,
PROCESSING, OR DEALING IN GOLD, OR, TO A LESSER DEGREE, IN SILVER,
PLATINUM, DIAMONDS, OR OTHER PRECIOUS METALS AND MINERALS. FMR also may
invest in companies that manufacture and distribute precious metals and
minerals products (such as jewelry, watches, and metal foils and leaf) and
companies that invest in other companies engaged in gold and other precious
metal and mineral-related activities . Normally at least 80% of the
fund's assets will be invested in securities of North, Central and South
American companies engaged in gold-related activities, and in gold bullion
or coins.
The prices of gold and other precious metal mining securities have been
subject to substantial fluctuations over short periods of time and may be
affected by unpredictable international monetary and political developments
such as currency devaluations or revaluations, economic and social
conditions within a country, trade imbalances, or trade or currency
restrictions between countries. Since much of the world's gold reserves are
located in South Africa, the social upheaval and related economic
difficulties there may, from time to time, influence the price of gold and
the share values of precious metals mining companies located elsewhere.
Investors should understand the special considerations and risks related to
such an investment emphasis, and, accordingly, the potential effect on the
fund's value.
In addition to its investments in securities, the fund may invest a portion
of its assets in gold or other precious metals in the form of bullion,
coins, or securities indexed to the price of precious metals. The price of
gold and other precious metals is affected by broad economic and political
conditions, but is less subject to local and company-specific factors than
securities of individual companies. As a result, precious metals may be
more or less volatile in price than securities of companies engaged in
precious metals-related businesses. FMR intends to purchase only those
forms of precious metals that are readily marketable and that can be stored
in accordance with custody regulations applicable to mutual funds. The fund
may incur higher custody and transaction costs for precious metals than for
securities.
The fund is authorized to invest up to 50% of its total assets in precious
metals bullion or coins; however, as a non-fundamental policy (which can be
changed without shareholder approval), FMR does not currently intend to
purchase precious metals if, as a result, more than 25% of the fund's total
assets would be invested in precious metals, and does not currently intend
to purchase coins. As a further limit on precious metals investments, in
order to qualify as a registered investment company , gains from selling
precious metals may not exceed 10% of the fund's annual gross income. This
tax requirement could cause the fund to hold or sell bullion or securities
when it would not otherwise do so. The fund also may purchase securities
whose redemption value is indexed to the price of gold or other precious
metals, which are discussed in this SA I. Because the value of these
securities is directly linked to the price of precious metals, they involve
risks and pricing characteristics similar to direct investments in precious
metals. FMR currently intends to treat such securities as investments in
precious metals for the purposes of the 25% and 50% limitations above
and the 80% policy in the first paragraph of this section.
AUTOMOTIVE PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, MARKETING OR
SALE OF AUTOMOBILES, TRUCKS, SPECIALTY VEHICLES, PARTS, TIRES, AND RELATED
SERVICES. These companies may include, for example , companies
involved with the manufacture and distribution of vehicles, vehicle parts
and tires (either original equipment or for the aftermarket) and
companies involved in the retail sale of vehicles, parts or tires. In
addition, the fund may invest in companies that provide automotive-related
services to manufacturers, distributors or consumers.
The automotive industry is highly cyclical and companies involved in this
business may suffer periodic operating losses. While most of the major
manufacturers are large, financially strong companies, many others are
small and may be non-diversified in both product line and customer base.
BIOTECHNOLOGY PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT,
AND MANUFACTURE OF VARIOUS BIOTECHNOLOGICAL PRODUCTS, SERVICES AND
PROCESSES. These include companies involved with new or experimental
technologies such as genetic engineering, hybridoma and recombinant DNA
techniques and monoclonal antibodies. The fund may also invest in companies
that manufacture and/or distribute biotechnological and biomedical
products, including devices and instruments, and in companies that provide
or benefit significantly from scientific and technological advances in
biotechnology. Some biotechnology companies may provide processes or
services instead of, or in addition to, products.
The description of the biotechnology sector will be interpreted broadly by
FMR, and may include applications and developments in such areas as human
health care (e.g., cancer, infectious disease, diagnostics and
therapeutics); pharmaceuticals (e.g., new drug development and production);
agricultural and veterinary applications (e.g., improved seed varieties,
animal growth hormones); chemicals (e.g., enzymes, toxic waste treatment);
medical/surgical (e.g., epidermal growth factor, in vivo
imaging/therapeutics); and industry (e.g., biochips, fermentation, enhanced
mineral recovery).
Many of these companies may have losses and may not offer products until
the end of the decade . These companies may have persistent losses
during a new product's transition from development to production, and
revenue patterns may be erratic. In addition, biotechnology companies are
affected by patent considerations, intense competition, rapid technological
change and obsolescence, and regulatory requirements of the U.S. Food and
Drug Administration, the Environmental Protection Agency (EPA) ,
state and local governments, and foreign regulatory authorities. Many of
these companies are relatively small and their stock is thinly traded.
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO: COMPANIES ENGAGED IN STOCK
BROKERAGE, COMMODITY BROKERAGE, INVESTMENT BANKING, TAX-ADVANTAGED
INVESTMENT OR INVESTMENT SALES, INVESTMENT MANAGEMENT, OR RELATED
INVESTMENT ADVISORY SERVICES. The fund may invest in diversified
companies with operations in the aforementioned areas, in addition to firms
principally engaged in brokerage activities or investment management. The
fund will not invest in securities of FMR or its affiliated companies.
Changes in regulations, the brokerage commission structure, and the
competitive environment, combined with the operating leverage inherent in
companies in these industries, can produce erratic revenues and earnings
over time. The performance of companies in this industry can be closely
tied to the stock market and can suffer during market declines. Revenues
often depend on overall market activity. SEC regulations provide
that the fund may not invest more than 5% of its total assets in the
securities of any one company that derives more than 15% of its revenues
from brokerage or investment management activities. These companies as well
as those deriving more than 15% of profits from brokerage and investment
management activities will be considered to be "principally engaged" in
this fund's specific business activity.
CHEMICALS PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT,
MANUFACTURE OR MARKETING OF PRODUCTS OR SERVICES RELATED TO THE CHEMICAL
PROCESS INDUSTRIES. Such products may include synthetic and natural
materials, such as basic and intermediate organic and inorganic chemicals,
plastics, synthetic fibers, fertilizers, industrial gases, flavorings,
fragrances, biological materials, catalysts, carriers, additives, and
process aids. The fund may also invest in companies providing
design, engineering, construction, and consulting services to companies
engaged in chemical processing.
Companies in the chemical processing field are subject to regulation by
various federal and state authorities, including the EPA and its
state agency counterparts. As regulations are developed and enforced, such
companies may be required to alter or cease production of a product, to pay
fines or to pay for cleaning up a disposal site, or to agree to
restrictions on their operations. In addition, some of the materials and
processes used by these companies involve hazardous components. There are
risks associated with their production, handling and disposal. These risks
are in addition to the more common risks of intense competition and product
obsolescence.
COMPUTERS PORTFOLIO: COMPANIES ENGAGED IN RESEARCH, DESIGN, DEVELOPMENT,
MANUFACTURE OR DISTRIBUTION OF PRODUCTS, PROCESSES OR SERVICES THAT RELATE
TO CURRENTLY AVAILABLE OR EXPERIMENTAL HARDWARE TECHNOLOGY WITHIN THE
COMPUTER INDUSTRY. The fund may invest in companies that provide the
following products or services: mainframes, minicomputers, microcomputers,
peripherals, data or information processing, office or factory automation,
robotics, artificial intelligence, computer aided design, medical
technology, engineering and manufacturing, data communications and
software.
Competitive pressures may have a significant effect on the financial
conditions of companies in the computer industry. For example, as product
cycles shorten and manufacturing capacity increases, these companies could
become increasingly subject to aggressive pricing, which hampers
profitability. Fluctuating domestic and international demand also affect
profitability.
CONSTRUCTION AND HOUSING PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN AND
CONSTRUCTION OF RESIDENTIAL, COMMERCIAL, INDUSTRIAL AND PUBLIC WORKS
FACILITIES, AS WELL AS COMPANIES ENGAGED IN THE MANUFACTURE, SUPPLY,
DISTRIBUTION OR SALE OF PRODUCTS OR SERVICES TO THESE CONSTRUCTION
INDUSTRIES. Examples of companies engaged in these activities include
companies that provide engineering and contracting services, companies
that supply home furnishings , and companies that produce basic building
materials such as cement, aggregates, gypsum, timber, and wall and floor
coverings.
The fund also may invest in the securities of companies involved in real
estate development and construction financing such as homebuilders,
architectural and design firms, and property managers. Additionally, the
fund may invest in companies involved in the home improvement and
maintenance industry, including building material retailers and
distributors, household service firms, and those companies that supply such
companies.
The companies in which the fund may invest are subject to, among
other factors, changes in government spending on public works and
transportation facilities such as highways and airports, as well as changes
in interest rates and levels of economic activity, government-sponsored
housing subsidy programs, rate of housing turnover, taxation, demographic
patterns, consumer spending, consumer confidence, and new and existing home
sales.
CONSUMER I NDUSTRIES PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE
AND DISTRIBUTION OF GOODS TO CONSUMERS BOTH DOMESTICALLY AND
INTERNATIONALLY. The fund may invest in companies that manufacture or sell
durable products such as homes, cars, boats, furniture, major appliances,
and personal computers.
The fund also may invest in companies that manufacture, wholesale, or
retail non-durable goods such as food, beverages, tobacco, health care
products, household and personal care products, apparel, and entertainment
products ( e.g., books, magazines, TV, cable, movies, music,
gaming, sports. In addition, the fund may invest in consumer
products and services such as lodging, child care, convenience stores, and
car rentals.
The success of durable goods manufacturers and retailers is closely tied to
the performance of the overall economy, interest rates, and consumer
confidence. These segments are very competitive; success depends heavily on
household disposable income and consumer spending. Consumer product and
retailing concepts tend to rise and fall with changes in demographics and
consumer tastes.
CYCLICAL INDUSTRIES PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH,
DEVELOPMENT, MANUFACTURE, DISTRIBUTION, SUPPLY, OR SALE OF MATERIALS,
EQUIPMENT, PRODUCTS OR SERVICES RELATED TO CYCLICAL INDUSTRIES. These may
include the automotive, chemical, construction and housing, defense and
aerospace, environmental services, industrial equipment and materials,
paper and forest products, and transportation industries.
Many companies in these industries are significantly affected by general
economic trends including employment, economic growth, and interest rates.
Other factors that may affect these industries are changes in consumer
sentiment and spending, commodity prices, legislation, government
regulation and spending, import controls, and worldwide competition. At
times, worldwide production of the materials used in cyclical industries
has exceeded demand as a result of, for example, over-building or economic
downturns. During these times, commodity price declines and unit volume
reductions resulted in poor investment returns and losses. Furthermore, a
company in the cyclical industries may be subject to liability for
environmental damage, depletion of resources, and mandated expenditures for
safety and pollution control.
DEFENSE AND AEROSPACE PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH,
MANUFACTURE OR SALE OF PRODUCTS OR SERVICES RELATED TO THE DEFENSE OR
AEROSPACE INDUSTRIES. The fund may invest in companies that provide
the following products or services: air transport; defense electronics;
aircraft or spacecraft production; missile design; data processing or
computer-related services; communications systems; research; development
and manufacture of military weapons and transportation; general aviation
equipment, missiles, space launch vehicles, and spacecraft; units for
guidance, propulsion, and control of flight vehicles; and equipment
components and airborne and ground-based equipment essential to the
testing, operation, and maintenance of flight vehicles.
Companies involved in the defense and aerospace industries rely to a large
extent on U.S. (and other) government demand for their products and
services. The financial condition of such companies and investor interest
in the stocks of these companies are heavily influenced by federal defense
and aerospace spending policies. For example, defense spending is currently
under pressure from efforts to control the U.S. budget deficit.
DEVELOPING COMMUNICATIONS PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT,
MANUFACTURE OR SALE OF EMERGING COMMUNICATIONS SERVICES OR EQUIPMENT. The
fund may invest in companies developing or offering services or products
based on communications technologies such as cellular, paging, personal
communications networks, special mobile radio, facsimile, fiber optic
transmission, voice mail, video conferencing, microwave, satellite, local
and wide area networking, and other transmission electronics. For purposes
of characterizing the fund's investments, communications services or
equipment may be deemed to be "emerging" if they derive from new
technologies or new applications of existing technologies. The fund will
focus on companies whose business is based on these emerging technologies,
with less emphasis on traditional telephone utilities and large long
distance carriers. The fund will attempt to exploit growth opportunities
presented by new technologies and applications in the communications field.
Many of these opportunities may be in the development stage and, as such,
can pose large risks as well as potential rewards. Such risks might include
failure to obtain (or delays in obtaining) adequate financing or necessary
regulatory approvals, intense competition, product incompatibility,
consumer preferences and rapid obsolescence. Securities of small companies
that base their business on emerging technologies may be volatile due to
limited product lines, markets, or financial resources.
ELECTRONICS PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, OR
SALE OF ELECTRONIC COMPONENTS (SEMICONDUCTORS, CONNECTORS, PRINTED CIRCUIT
BOARDS AND OTHER COMPONENTS); EQUIPMENT VENDORS TO ELECTRONIC COMPONENT
MANUFACTURERS; ELECTRONIC COMPONENT DISTRIBUTORS; AND ELECTRONIC
INSTRUMENTS AND ELECTRONIC SYSTEMS VENDORS. In addition, the fund may
invest in companies in the fields of defense electronics, medical
electronics, consumer electronics, advanced manufacturing technologies
(computer-aided design and computer-aided manufacturing [CAD/CAM],
computer-aided engineering, and robotics), lasers and electro-optics, and
other new electronic technologies. Many of the products offered by
companies engaged in the design, production or distribution of electronic
products are subject to risks of rapid obsolescence.
ENERGY PORTFOLIO: COMPANIES IN THE ENERGY FIELD, INCLUDING THE CONVENTIONAL
AREAS OF OIL, GAS, ELECTRICITY AND COAL, AND NEWER SOURCES OF ENERGY SUCH
AS NUCLEAR, GEOTHERMAL, OIL SHALE AND SOLAR POWER. The business activities
of companies in which the fund may invest include: production,
generation, transmission, refining, marketing, control, distribution or
measurement of energy or energy fuels such as petrochemicals; providing
component parts or services to companies engaged in the above activities;
energy research or experimentation; and environmental activities related to
the solution of energy problems, such as energy conservation and pollution
control. Companies participating in new activities resulting from
technological advances or research discoveries in the energy field will
also be considered for this fund.
The securities of companies in the energy field are subject to changes in
value and dividend yield which depend, to a large extent, on the price and
supply of energy fuels. Swift price and supply fluctuations may be caused
by events relating to international politics, energy conservation, the
success of exploration projects, and tax and other regulatory policies of
various governments.
ENERGY SERVICE PORTFOLIO: COMPANIES IN THE ENERGY SERVICE FIELD, INCLUDING
THOSE THAT PROVIDE SERVICES AND EQUIPMENT TO THE CONVENTIONAL AREAS OF OIL,
GAS, ELECTRICITY AND COAL, AND NEWER SOURCES OF ENERGY SUCH AS NUCLEAR,
GEOTHERMAL, OIL SHALE AND SOLAR POWER. The fund may invest in
companies involved in providing services and equipment for drilling
processes such as offshore and onshore drilling, drill bits, drilling rig
equipment, drilling string equipment, drilling fluids, tool joints and
wireline logging. Many energy service companies are engaged in production
and well maintenance, providing such products and services as packers,
perforating equipment, pressure pumping, downhole equipment, valves, pumps,
compression equipment, and well completion equipment and service. Certain
companies supply energy providers with exploration technology such as
seismic data, geological and geophysical services, and interpretation of
this data. The fund may also invest in companies with a variety of
products or services including pipeline construction, oil tool rental,
underwater well services, helicopter services, geothermal plant design or
construction, electric and nuclear plant design or construction,
energy-related capital equipment, mining related equipment or services, and
high technology companies serving the above industries.
Energy service firms are affected by supply, demand and other normal
competitive factors for their specific products or services. They are also
affected by other unpredictable factors such as supply and demand for oil
and gas, prices of oil and gas, exploration and production spending,
governmental regulation, world events and economic conditions.
ENVIRONMENTAL SERVICES PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH,
DEVELOPMENT, MANUFACTURE OR DISTRIBUTION OF PRODUCTS, PROCESSES OR SERVICES
RELATED TO WASTE MANAGEMENT OR POLLUTION CONTROL. Such products, processes
or services may include the transportation, treatment and disposal of both
hazardous and solid wastes, including waste-to-energy and recycling;
remedial project efforts, including groundwater and underground storage
tank decontamination, asbestos cleanup and emergency cleanup response; and
the detection, analysis, evaluation, and treatment of both existing and
potential environmental problems including, among others, contaminated
water, air pollution, and acid rain. The fund may also invest in companies
that provide design, engineering, construction, and consulting services to
companies engaged in waste management or pollution control.
The environmental services field has generally been positively
influenced by legislation resulting in stricter government regulations and
enforcement policies for both commercial and governmental generators of
waste materials, as well as specific expenditures designated for remedial
cleanup efforts. Companies in the environmental services field are also
affected by regulation by various federal and state authorities, including
the federal EPA and its state agency counterparts. As regulations
are developed and enforced, such companies may be required to alter or
cease production of a product or service or to agree to restrictions on
their operations. In addition, since the materials handled and processes
involved include hazardous components, there is significant liability risk.
There are also risks of intense competition within the environmental
services field.
FINANCIAL SERVICES PORTFOLIO: COMPANIES PROVIDING FINANCIAL SERVICES TO
CONSUMERS AND INDUSTRY. Companies in the financial services sector
include: commercial banks and savings and loan associations, consumer and
industrial finance companies, securities brokerage companies, real
estate-related companies, leasing companies, and a variety of firms in all
segments of the insurance industry such as multi-line, property and
casualty, and life insurance.
The financial services sector is currently undergoing relatively
rapid change as existing distinctions between financial service segments
become less clear. For instance, recent business combinations have included
insurance, finance, and securities brokerage under single ownership. Some
primarily retail corporations have expanded into securities and insurance
industries . Moreover, the federal laws generally separating
commercial and investment banking are currently being studied by Congress.
Banks, savings and loan associations, and finance companies are subject to
extensive governmental regulation which may limit both the amounts and
types of loans and other financial commitments they can make and the
interest rates and fees they can charge. The profitability of these groups
is largely dependent on the availability and cost of capital funds, and can
fluctuate significantly when interest rates change. In addition, general
economic conditions are important to the operations of these concerns, with
exposure to credit losses resulting from possible financial difficulties of
borrowers potentially having an adverse effect. Insurance companies are
likewise subject to substantial governmental regulation, predominantly at
the state level, and may be subject to severe price competition.
SEC regulations provide that the fund may not invest more than 5% of
its total assets in the securities of any one company that derives
more than 15% of its revenues from brokerage or investment management
activities. These companies as well as those deriving more than 15% of
profits from brokerage and investment management activities will be
considered to be "principally engaged" in this fund's business activity.
FOOD AND AGRICULTURE PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, SALE
OR DISTRIBUTION OF FOOD AND BEVERAGE PRODUCTS, AGRICULTURAL PRODUCTS, AND
PRODUCTS RELATED TO THE DEVELOPMENT OF NEW FOOD TECHNOLOGIES. The goods and
services provided or manufactured by companies in which the fund may
invest include: packaged food products such as cereals, pet foods
and frozen foods; meat and poultry processing; the production of hybrid
seeds; the wholesale and retail distribution and warehousing of food and
food-related products, including restaurants; and the manufacture and
distribution of health food and dietary products, fertilizer and
agricultural machinery, wood products, tobacco, and tobacco leaf. In
addition, t he fund may invest in food technology companies engaged
in and pioneering the development of new technologies to provide improved
hybrid seeds, new and safer food storage, and new enzyme
technologies .
The success of food and food-related products is closely tied to supply and
demand, which may be strongly affected by demographic and product trends,
stimulated by food fads, marketing campaigns, and environmental factors. In
the United States , the agricultural products industry is subject to
regulation by numerous federal and municipal government agencies.
HEALTH CARE PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, OR
SALE OF PRODUCTS OR SERVICES USED FOR OR IN CONNECTION WITH HEALTH CARE OR
MEDICINE. Companies in the health care sector include pharmaceutical
companies; firms that design, manufacture, sell, or supply medical, dental,
and optical products, hardware or services; companies involved in
biotechnology, medical diagnostic, and biochemical research and
development, as well as companies involved in the operation of health care
facilities. Many of these companies are subject to government regulation of
their products and services, a factor which could have a significant and
possibly unfavorable effect on the price and availability of such products
or services. Furthermore, the types of products or services produced or
provided by these companies may become obsolete quickly.
HOME FINANCE PORTFOLIO: COMPANIES ENGAGED IN INVESTING IN REAL ESTATE,
USUALLY THROUGH MORTGAGES AND OTHER CONSUMER-RELATED LOANS. These companies
may also offer discount brokerage services, insurance products, leasing
services, and joint venture financing. The fund may invest in
mortgage banking companies, government-sponsored enterprises, real estate
investment trusts, consumer finance companies, and similar entities, as
well as savings and loan associations, savings banks, building and loan
associations, cooperative banks, commercial banks, and similar depository
institutions. The fund may invest in U.S. depository institutions
whose customer deposits are insured by the Savings Association Insurance
Fund (SAIF) or the Bank Insurance Fund (BIF).
The residential real estate finance industry has changed rapidly over the
last decade. Regulatory changes at federally insured institutions, in
response to a high failure rate, have mandated higher capital ratios and
more prudent underwriting. This reduced capacity has created growth
opportunities for uninsured companies and secondary market products to fill
unmet demand for home finance. Continued change in the origination,
packaging, selling, holding, and insuring of home finance products is
expected going forward.
The fund will be influenced by potential regulatory changes, interest rate
movements, the level of home mortgage demand, and residential delinquency
trends.
INDUSTRIAL EQUIPMENT PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE,
DISTRIBUTION OR SERVICE OF PRODUCTS AND EQUIPMENT FOR THE INDUSTRIAL
SECTOR, INCLUDING INTEGRATED PRODUCERS OF CAPITAL EQUIPMENT (SUCH AS
GENERAL INDUSTRY MACHINERY, FARM EQUIPMENT, AND COMPUTERS), PARTS SUPPLIERS
AND SUBCONTRACTORS. The fund may invest in companies that manufacture
products or service equipment for the food, clothing or sporting goods
industries; companies that provide service establishment, railroad,
textile, farming, mining, oilfield, semiconductor, and telecommunications
equipment; companies that manufacture products or service equipment for
trucks, construction, transportation or machine tools; cable equipment
companies; and office automation companies.
The success of equipment manufacturing and distribution companies is
closely tied to overall capital spending levels. Capital spending is
influenced by the individual company's profitability and broader factors
such as interest rates and foreign competition, which are partly determined
by currency exchange rates. Equipment manufacturing concerns may also be
affected by economic cycles, technical obsolescence, labor relations
difficulties and government regulations pertaining to products, production
facilities, or production processes.
INDUSTRIAL MATERIALS PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE,
MINING, PROCESSING, OR DISTRIBUTION OF RAW MATERIALS AND INTERMEDIATE GOODS
USED IN THE INDUSTRIAL SECTOR. The products handled by the companies in
which the fund may invest include chemicals, timber, paper,
copper, iron ore, nickel, steel, aluminum, textiles, cement, and gypsum.
The fund may also invest in the securities of mining, processing,
transportation, and distribution companies, including equipment suppliers
and railroads.
Many companies in the industrial sector are significantly affected
by the level and volatility of commodity prices, the exchange value of the
dollar, import controls, and worldwide competition. At times, worldwide
production of these materials has exceeded demand as a result of
over-building or economic downturns. During these times, commodity price
declines, and unit volume reductions have led to poor investment returns
and losses. Other risks include liability for environmental damage,
depletion of resources, and mandated expenditures for safety and pollution
control.
INSURANCE PORTFOLIO: COMPANIES ENGAGED IN UNDERWRITING, REINSURING,
SELLING, DISTRIBUTING, OR PLACING OF PROPERTY AND CASUALTY, LIFE, OR HEALTH
INSURANCE. The fund may invest in multi-line companies that provide
property and casualty coverage, as well as life and health insurance. The
fund may invest in insurance brokers, reciprocals, and claims processors.
The fund may also invest in diversified financial companies with
subsidiaries (including insurance brokers, reciprocals and claims
processors) engaged in underwriting, reinsuring, selling, distributing or
placing insurance with independent third parties.
Insurance company profits are affected by interest rate levels, general
economic conditions, and price and marketing competition. Property and
casualty insurance profits may also be affected by weather catastrophes and
other disasters. Life and health insurance profits may be affected by
mortality and morbidity rates. Individual companies may be exposed to
material risks including reserve inadequacy and the inability to collect
from reinsurance carriers. Insurance companies are subject to extensive
governmental regulation, including the imposition of maximum rate levels,
which may not be adequate for some lines of business. Proposed or potential
tax law changes may also adversely affect insurance companies' policy
sales, tax obligations, and profitability.
LEISURE PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, PRODUCTION, OR
DISTRIBUTION OF GOODS OR SERVICES IN THE LEISURE INDUSTRIES. The goods or
services provided by companies in which the fund may invest
include: television and radio broadcast or manufacture (including cable
television); motion pictures and photography; recordings and musical
instruments; publishing, including newspapers and magazines; sporting goods
and camping and recreational equipment; and sports arenas. Other goods and
services may include toys and games (including video and other electronic
games), amusement and theme parks, travel and travel-related services,
hotels and motels, leisure apparel or footwear, fast food, beverages,
restaurants, tobacco products, and gaming casinos.
Securities of companies in the leisure indust ries may be considered
speculative. Companies engaged in entertainment, gaming, broadcasting,
cable television and cellular communications, for example, have
unpredictable earnings, due in part to changing consumer tastes and intense
competition. Securities of companies in the leisure industr ies
generally exhibit greater volatility than the overall market. The
market has been known to react strongly to technological developments and
to the specter of government regulation in the leisure industr ies .
MEDICAL DELIVERY PORTFOLIO: COMPANIES ENGAGED IN THE OWNERSHIP OR
MANAGEMENT OF HOSPITALS, NURSING HOMES, HEALTH MAINTENANCE ORGANIZATIONS,
AND OTHER COMPANIES SPECIALIZING IN THE DELIVERY OF HEALTH CARE SERVICES.
The fund may invest in companies that operate acute care,
psychiatric, teaching, or specialized treatment hospitals; firms that
provide outpatient surgical, outpatient rehabilitation, or other
specialized care, home health care, drug and alcohol abuse treatment, and
dental care; firms operating comprehensive health maintenance organizations
and nursing homes for the elderly and disabled; and firms that provide
related laboratory services.
Federal and state governments provide a substantial percentage of revenues
to health care service providers via Medicare and Medicaid. The future
growth of this source of funds is subject to great uncertainty.
Additionally, the complexion of the private payment system is changing. For
example, insurance companies are beginning to offer long - term health
care insurance for nursing home patients to supplement or replace
government benefits. Also, membership in health maintenance organizations
or prepaid health plans is displacing individual payments for each service
rendered by a hospital or physician.
The demand for health care services will tend to increase as the population
ages. However, review of patients' need for hospitalization by Medicare and
health maintenance organizations has demonstrated the ability of health
care providers to curtail unnecessary hospital stays and reduce costs.
MULTIMEDIA PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT, PRODUCTION,
SALE AND DISTRIBUTION OF GOODS OR SERVICES USED IN THE BROADCAST AND MEDIA
INDUSTRIES. Business activities of companies in which the fund may
invest include: ownership, operation, or broadcast of free or pay
television, radio or cable stations; publication and sale of newspapers,
magazines, books or video products; and distribution of data-based
information. The fund may also invest in companies involved in the
development, syndication and transmission of the following products:
television and movie programming, pay-per-view television, advertising,
cellular communications, and emerging technology for the broadcast and
media industries.
Some of the companies in the broadcast and media industries are
undergoing significant change because of federal deregulation of cable and
broadcasting. As a result, competitive pressures are intense and the stocks
are subject to increased price volatility. Current FCC rules
prohibit the fund, together with all other funds advised by FMR, from
holding in the aggregate 10% of the voting stock of more than 20 AM, 20 FM
or 12 TV stations.
NATURAL GAS PORTFOLIO: COMPANIES ENGAGED IN THE PRODUCTION, TRANSMISSION,
AND DISTRIBUTION OF NATURAL GAS, AND INVOLVED IN THE EXPLORATION OF
POTENTIAL NATURAL GAS SOURCES, AS WELL AS THOSE COMPANIES THAT PROVIDE
SERVICES AND EQUIPMENT TO NATURAL GAS PRODUCERS, REFINERIES, COGENERATION
FACILITIES, CONVERTERS, AND DISTRIBUTORS. The business activities of
companies in which the fund may invest include: production,
transmission, distribution, marketing, control, or measurement of natural
gas; exploration of potential natural gas sources; providing component
parts or services to companies engaged in the above activities; natural gas
research or experimentation; and environmental activities related to the
solution of energy problems, such as energy conservation or pollution
control through the use of natural gas. The fund may also invest in
companies participating in new activities working toward technological
advances in the natural gas industry.
The companies in the natural gas industry are subject to, among other
factors, changes in price and supply of both conventional and alternative
energy sources. Swift price and supply fluctuations may be caused by events
relating to international politics, energy conservation, the success of
energy source exploration projects, and tax and other regulatory policies
of domestic and foreign governments.
NATURAL RESOURCES PORTFOLIO: COMPANIES THAT OWN OR DEVELOP NATURAL
RESOURCES, OR SUPPLY GOODS AND SERVICES TO SUCH COMPANIES. Natural
resources include precious metals (e.g., gold, platinum, and silver),
ferrous and nonferrous metals (e.g., iron, aluminum, and copper), strategic
metals (e.g., uranium and titanium), hydrocarbons (e.g., coal, oil, and
natural gases), chemicals, forest products, real estate, food, textile and
tobacco products, and other basic commodities. Exploring, mining, refining,
processing, transporting, and fabricating are examples of activities of
companies in the natural resources sector.
The fund may invest up to 25% of its total assets in precious metals and
currently intends to limit its investments to readily marketable precious
metals. Precious metals, at times, have been subject to substantial price
fluctuations over short periods of time and may be affected by
unpredictable international monetary and political policies such as
currency devaluations or revaluations, economic and social conditions
within a country, trade imbalances, or trade or currency restrictions
between countries. The fund may also consider instruments and securities
indexed to the price of gold or other precious metals as an alternative to
direct investments in precious metals.
As a practical matter, investments in physical commodities can present
concerns such as delivery, storage and maintenance, possible illiquidity
and the unavailability of accurate market valuations. FMR, in addressing
these concerns, currently intends to purchase only readily marketable
precious metals and to deliver and store them with a qualified U.S. bank.
Investments in bullion earn no investment income and may involve higher
custody and transaction costs than investments in securities. In order to
qualify as a regulated investment company, gains from selling precious
metals may not exceed 10% of the fund's annual gross income. This tax
requirement could cause the fund to hold or sell bullion or securities when
it would not otherwise do so.
PAPER AND FOREST PRODUCTS PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE,
RESEARCH, SALE, OR DISTRIBUTION OF PAPER PRODUCTS, PACKAGING PRODUCTS,
BUILDING MATERIALS (SUCH AS LUMBER AND PANELING PRODUCTS), AND OTHER
PRODUCTS RELATED TO THE PAPER AND FOREST PRODUCTS INDUSTRY. The fund may
invest in diversified companies with operations in the aforementioned
areas.
The success of these companies depends on, among other things, the health
of the economy, worldwide production capacity and prevailing interest rate
levels, which, in turn, may affect product pricing, costs and operating
margins. These variables also affect the level of industry and consumer
capital spending for paper and forest products.
PRECIOUS METALS AND MINERALS PORTFOLIO: COMPANIES ENGAGED IN EXPLORATION,
MINING, PROCESSING OR DEALING IN GOLD, SILVER, PLATINUM, DIAMONDS OR OTHER
PRECIOUS METALS AND MINERALS. The fund may also invest in companies that
manufacture and distribute precious metals and minerals products (such as
jewelry, watches, and metal foils and leaf) and companies that invest in
other companies engaged in gold and other precious metal and
mineral-related activities. Under normal conditions, the fund will
invest at least 80% of its assets in (i) securities of companies
principally engaged in exploration, mining, processing, or dealing in gold,
silver, platinum, diamonds, or other precious metals and minerals, and (ii)
precious metals. The fund also may invest in securities whose
redemption value is indexed to the price of gold or other precious metals.
The value of the fund's investments may be affected by changes in the price
of gold and other precious metals. Gold has been subject to substantial
price fluctuations over short periods of time and may be affected by
unpredictable international monetary and political developments such
as currency devaluations or revaluations; economic and social conditions
within a country; trade imbalances; or trade or currency restrictions
between countries. Since much of the world's known gold reserves are
located in South Africa, the social upheaval and related economic
difficulties there may, from time to time, influence the price of gold
and the share values of precious metals mining companies located
elsewhere . Because companies involved in exploring, mining, processing,
or dealing in precious metals or minerals are frequently located outside of
the United States, all or a significant portion of this fund may be
invested in securities of foreign issuers. Investors should understand the
special considerations and risks related to such an investment emphasis,
and accordingly, the potential effect on the fund's value.
In addition to its investments in securities, the fund may invest a portion
of its assets in precious metals, such as gold, silver, platinum, and
palladium. The prices of precious metals are affected by broad economic and
political conditions, but are less subject to local and company-specific
factors than securities of individual companies. As a result, precious
metals may be more or less volatile in price than securities of companies
engaged in precious metals-related businesses. The fund may purchase
precious metals in any form, including bullion and coins, provided that FMR
intends to purchase only those forms of precious metals that are readily
marketable and that can be stored in accordance with custody regulations
applicable to mutual funds. The fund may incur higher custody and
transaction costs for precious metals than for securities. Also, precious
metals investments do not pay income.
The fund is authorized to invest up to 50% of its total assets in precious
metals; however, as a non-fundamental policy (which can be changed without
shareholder approval), FMR does not currently intend to purchase precious
metals if, as a result, more than 25% of the fund's total assets would be
invested in precious metals. As a further limit on precious metals
investments, in order to quality as a regulated investment company,
gains from selling precious metals may not exceed 10% of the fund's annual
gross income. This tax requirement could cause the fund to hold or sell
precious metals or securities when it would not otherwise do so.
Securities whose redemption value is indexed to the price of gold or other
precious metals involve risks and pricing characteristics similar to direct
precious metals investments. FMR currently intends to treat such securities
as investments in precious metals for the purposes of the 25% and 50%
limitations above and the 80% policy in the first paragraph of this
section.
REGIONAL BANKS PORTFOLIO: COMPANIES ENGAGED IN ACCEPTING DEPOSITS AND
MAKING COMMERCIAL AND PRINCIPALLY NON-MORTGAGE CONSUMER LOANS. In addition,
these companies may offer the following services: merchant banking,
consumer and commercial finance, discount brokerage, leasing and insurance.
These companies concentrate their operations within a specific part of the
country rather than operating predominantly on a national or international
scale. The fund may invest in securities of foreign institutions, although
the majority of publicly-traded regional banks currently are organized in
the United States.
The fund may invest in U.S. institutions whose customer deposits may
or may not be insured by the federal government. Such U.S. institutions may
include, but are not limited to, state chartered banks, savings and loan
institutions, and banks that are members of the Federal Reserve System.
Federal laws generally separating commercial and investment banking, as
well as laws governing the capitalization and regulation of the savings and
loan industry, are currently being reexamined by Congress. The services
offered by banks may expand if legislation broadening bank powers is
enacted. While providing diversification, expanded powers could expose
banks to well-established competitors, particularly as the historical
distinctions between regional banks and other financial institutions erode.
Increased competition may also result from the broadening of regional and
national interstate banking powers, which has already reduced the number of
publicly traded regional banks. In addition, general economic conditions
are important to regional banking concerns, with exposure to credit losses
resulting from possible financial difficulties of borrowers potentially
having an adverse effect.
RETAILING PORTFOLIO: COMPANIES ENGAGED IN MERCHANDISING FINISHED GOODS AND
SERVICES PRIMARILY TO INDIVIDUAL CONSUMERS. Companies in which the
fund may inves t include: general merchandise retailers, department
stores, food retailers, drug stores, and any specialty retailers selling a
single category of merchandise such as apparel, toys, consumer electronics,
or home improvement products. T he fund may also invest in
companies engaged in selling goods and services through alternative means
such as direct telephone marketing, mail order, membership warehouse clubs,
computer, or video based electronic systems.
The success of retailing companies is closely tied to consumer spending
which, in turn, is affected by general economic conditions and consumer
confidence levels. The retailing industry is highly competitive; success is
often tied to a company's ability to anticipate changing consumer tastes.
SOFTWARE AND COMPUTER SERVICES PORTFOLIO: COMPANIES ENGAGED IN RESEARCH,
DESIGN, PRODUCTION OR DISTRIBUTION OF PRODUCTS OR PROCESSES THAT RELATE TO
SOFTWARE OR INFORMATION-BASED SERVICES. The fund may invest in
companies that provide systems level software (designed to run the
basic functions of a computer) or applications software (designed for one
type of work) directed at either horizontal (general use) or vertical
(certain industries or groups) markets, time-sharing services,
information-based services, computer consulting or facilities management
services, communications software, and data communications services.
Competitive pressures may have a significant effect on the financial
condition of companies in the software and computer services industries.
For example, the increasing number of companies and product offerings in
the vertical and horizontal markets may lead to aggressive pricing and
slower selling cycles.
TECHNOLOGY PORTFOLIO: COMPANIES WHICH FMR BELIEVES HAVE, OR WILL DEVELOP,
PRODUCTS, PROCESSES OR SERVICES THAT WILL PROVIDE OR WILL BENEFIT
SIGNIFICANTLY FROM TECHNOLOGICAL ADVANCES AND IMPROVEMENTS. These may
include, for example, companies that develop, produce, or distribute
products or services in the computer, semi-conductor, electronics,
communications, health care, and biotechnology sectors.
Competitive pressures may have a significant effect on the financial
condition o f companies in the technology sector . For example,
if technology continues to advance at an accelerated rate, and the number
of companies and product offerings continue to expand, these companies
could become increasingly sensitive to short product cycles and aggressive
pricing.
TELECOMMUNICATIONS PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT,
MANUFACTURE, OR SALE OF COMMUNICATIONS SERVICES OR COMMUNICATIONS
EQUIPMENT. Companies in the telecommunications field offer a variety of
services and products, including local and long - distance telephone
service; cellular, paging, local and wide area product networks; satellite,
microwave and cable television; and equipment used to provide these
products and services. Long - distance telephone companies may also
have interests in new technologies, such as fiber optics and data
transmission.
Telephone operating companies are subject to both federal and state
regulation affecting permitted rates of return and the kinds of services
that may be offered. Telephone companies usually pay an
above - average dividend. However, the fund's investment decisions are
based primarily upon capital appreciation potential rather than income
considerations. Certain types of companies in which the fund may
invest are engaged in fierce competition for a share of the market for
their products. In recent years, these companies have been providing
goods or services such as private and local area networks, or engaged in
the sale of telephone set equipment.
TRANSPORTATION PORTFOLIO: COMPANIES ENGAGED IN PROVIDING TRANSPORTATION
SERVICES OR COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, DISTRIBUTION, OR
SALE OF TRANSPORTATION EQUIPMENT. Transportation services may
include, for example, companies i n volved in the movement of
freight or people such as airline, railroad, ship, truck, and bus
companies. Other service companies include those that provide
auto mobile, truck, container, rail car, and plane leasing and
maintenance. Equipment manufacturers include makers of trucks, autos,
planes, containers, rail cars, or any other mode of transportation and
their related products. In addition, the fund may invest in companies that
sell fue l- saving devices to the transportation industries and those
that sell insurance and software developed primarily for transportation
companies.
Risk factors that affect transportation stocks include the state of the
economy, fuel prices, labor agreements, and insurance costs. Transportation
stocks are cyclical and have occasional sharp price movements. The U.S.
trend has been to deregulate these industries, which could have a favorable
long-term effect, but future government decisions may adversely affect
these companies.
UTILITIES GROWTH PORTFOLIO: COMPANIES IN THE PUBLIC UTILITIES INDUSTRY AND
COMPANIES DERIVING A MAJORITY OF THEIR REVENUES FROM THEIR PUBLIC UTILITY
OPERATIONS. The fund may invest in companies engaged in the
manufacture, production, generation, transmission and sale of gas and
electric energy; water supply, waste disposal and sewerage and sanitary
service companies; and companies engaged in the communications field,
including telephone, telegraph, satellite, microwave and the provision of
other communication facilities for the public benefit (not including
companies involved in public broadcasting). Public utility stocks have
traditionally produced above-average dividend income, but the fund's
investments are made based on capital appreciation potential. The fund may
not own more than 5% of the outstanding voting securities of more than one
public utility company as defined by the Public Utility Holding Company Act
of 1935. This policy is non-fundamental and may be changed by the Board of
Trustees.
THE FOLLOWING PAGES CONTAIN MORE DETAILED INFORMATION ABOUT TYPES OF
INSTRUMENTS IN WHICH A FUND MAY INVEST, STRATEGIES FMR MAY EMPLOY IN
PURSUIT OF A FUND'S INVESTMENT OBJECTIVE, AND A SUMMARY OF RELATED RISKS.
FMR MAY NOT BUY ALL OF THESE INSTRUMENTS OR USE ALL OF THESE TECHNIQUES
UNLESS IT BELIEVES THAT DOING SO WILL HELP THE FU ND ACHIEVE ITS GOAL.
AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with
financial institutions that are, or may be considered to be, "affiliated
persons" of the fund under the 1940 Act. These transactions may
include repurchase agreements with custodian banks; short-term obligations
of, and repurchase agreements with, the 50 largest U.S. banks (measured by
deposits); municipal securities; U.S. Government securities with affiliated
financial institutions that are primary dealers in these securities;
short-term currency transactions; and short-term borrowings. In accordance
with exemptive orders issued by the SEC, the Board of Trustees has
established and periodically reviews procedures applicable to transactions
involving affiliated financial institutions.
ASSET-BACKED SECURITIES include pools of mortgages, loans, receivables or
other assets. Payment of principal and interest may be largely dependent
upon the cash flows generated by the assets backing the securities and, in
certain cases, supported by letters of credit, surety bonds, or other
credit enhancements. The value of asset-backed securities may also be
affected by the creditworthiness of the servicing agent for the pool, the
originator of the loans or receivables, or the entities providing the
credit support.
CLOSED-END INVESTMENT COMPANIES. A fund may purchase the shares of
closed-end investment companies to facilitate investment in certain
countries. Shares of closed-end investment companies may trade at a premium
or a discount to their net asset value.
DELAYED-DELIVERY TRANSACTIONS. A fund may buy and sell securities
on a delayed-delivery or when-issued basis. These transactions involve a
commitment by a fund to purchase or sell specific securities at a
predetermined price or yield, with payment and delivery taking place
after the customary settlement period for that type of security. Typically,
no interest accrues to the purchaser until the security is delivered.
The stock funds may receive fees for entering into delayed-delivery
transactions.
When purchasing securities on a delayed-delivery basis, a fund
assumes the rights and risks of ownership, including the risk of price and
yield fluctuations. Because a fund is not required to pay for
securities until the delivery date, these risks are in addition to the
risks associated with the fund's other investments. If a fund
remains substantially fully invested at a time when delayed-delivery
purchases are outstanding, the delayed-delivery purchases may result in a
form of leverage. When delayed-delivery purchases are outstanding, a
fund will set aside appropriate liquid assets in a segregated custodial
account to cover its purchase obligations. When a fund has sold a
security on a delayed-delivery basis, the fund does not participate in
further gains or losses with respect to the security. If the other party to
a delayed-delivery transaction fails to deliver or pay for the securities,
the fund could miss a favorable price or yield opportunity, or could suffer
a loss.
A fund may renegotiate delayed-delivery transactions after they are
entered into, and may sell underlying securities before they are delivered,
which may result in capital gains or losses.
DOMESTIC AND FOREIGN ISSUERS (MONEY MARKET FUND). Investments may be made
in U.S. dollar-denominated time deposits, certificates of deposit, and
bankers' acceptances of U.S. banks and their branches located outside of
the United States, U.S. branches and agencies of foreign banks, and foreign
branches of foreign banks. The fund may also invest in U.S.
dollar-denominated securities issued or guaranteed by other U.S. or foreign
issuers, including U.S. and foreign corporations or other business
organizations, foreign governments, foreign government agencies or
instrumentalities, and U.S. and foreign financial institutions, including
savings and loan institutions, insurance companies, mortgage bankers, and
real estate investment trusts, as well as banks.
The obligations of foreign branches of U.S. banks may be general
obligations of the parent bank in addition to the issuing branch, or may be
limited by the terms of a specific obligation and by governmental
regulation. Payment of interest and principal on these obligations may also
be affected by governmental action in the country of domicile of the branch
(generally referred to as sovereign risk). In addition, evidence of
ownership of portfolio securities may be held outside of the United States
and the fund may be subject to the risks associated with the holding of
such property overseas. Various provisions of federal law governing the
establishment and operation of U.S. branches do not apply to foreign
branches of U.S. banks.
Obligations of U.S. branches and agencies of foreign banks may be general
obligations of the parent bank in addition to the issuing branch, or may be
limited by the terms of a specific obligation and by federal and state
regulation, as well as by governmental action in the country in which the
foreign bank has its head office.
Obligations of foreign issuers involve certain additional risks. These
risks may include future unfavorable political and economic developments,
withholding taxes, seizures of foreign deposits, currency controls,
interest limitations, or other governmental restrictions that might affect
payment of principal or interest, or the ability to honor a credit
commitment. Additionally, there may be less public information available
about foreign entities. Foreign issuers may be subject to less governmental
regulation and supervision than U.S. issuers. Foreign issuers also
generally are not bound by uniform accounting, auditing, and financial
reporting requirements comparable to those applicable to U.S. issuers.
FOREIGN CURRENCY TRANSACTIONS. A stock fund may conduct foreign currency
transactions on a spot (i.e., cash) or forward basis (i.e., by entering
into forward contracts to purchase or sell foreign currencies). Although
foreign exchange dealers generally do not charge a fee for such
conversions, they do realize a profit based on the difference between the
prices at which they are buying and selling various currencies. Thus, a
dealer may offer to sell a foreign currency at one rate, while offering a
lesser rate of exchange should the counterparty desire to resell that
currency to the dealer. Forward contracts are customized transactions that
require a specific amount of a currency to be delivered at a specific
exchange rate on a specific date or range of dates in the future. Forward
contracts are generally traded in an interbank market directly between
currency traders (usually large commercial banks) and their customers.
The parties to a forward contract may agree to offset or terminate the
contract before its maturity, or may hold the contract to maturity and
complete the contemplated currency exchange. A fund may use currency
forward contracts for any purpose consistent with its investment objective.
The following discussion summarizes the principal currency management
strategies involving forward contracts that could be used by a fund. A fund
may also use swap agreements, indexed securities, and options and futures
contracts relating to foreign currencies for the same purposes.
A "settlement hedge" or "transaction hedge" is designed to protect a fund
against an adverse change in foreign currency values between the date a
security is purchased or sold and the date on which payment is made or
received. Entering into a forward contract for the purchase or sale of the
amount of foreign currency involved in an underlying security transaction
for a fixed amount of U.S. dollars "locks in" the U.S. dollar price of the
security. Forward contracts to purchase or sell a foreign currency may also
be used by a fund in anticipation of future purchases or sales of
securities denominated in foreign currency, even if the specific
investments have not yet been selected by FMR.
A fund may also use forward contracts to hedge against a decline in the
value of existing investments denominated in foreign currency. For example,
if a fund owned securities denominated in pounds sterling, it could enter
into a forward contract to sell pounds sterling in return for U.S. dollars
to hedge against possible declines in the pound's value. Such a hedge,
sometimes referred to as a "position hedge," would tend to offset both
positive and negative currency fluctuations, but would not offset changes
in security values caused by other factors. A fund could also hedge the
position by selling another currency expected to perform similarly to
the pound sterling. This type of hedge, sometimes referred to as a "proxy
hedge," could offer advantages in terms of cost, yield, or efficiency,
but generally would not hedge currency exposure as effectively as a direct
hedge into U.S. dollars. Proxy hedges may result in losses if the currency
used to hedge does not perform similarly to the currency in which the
hedged securities are denominated.
A fund may enter into forward contracts to shift its investment
exposure from one currency into another. This may include shifting
exposure from U.S. dollars to a foreign currency, or from one foreign
currency to another foreign currency. This type of strategy, sometimes
known as a "cross-hedge," will tend to reduce or eliminate exposure to the
currency that is sold, and increase exposure to the currency that is
purchased, much as if a fund had sold a security denominated in one
currency and purchased an equivalent security denominated in another.
Cross-hedges protect against losses resulting from a decline in the hedged
currency, but will cause a fund to assume the risk of fluctuations in the
value of the currency it purchases.
Under certain conditions, SEC guidelines require mutual funds to set aside
appropriate liquid assets in a segregated custodial account to cover
currency forward contracts. As required by SEC guidelines, a fund will
segregate assets to cover currency forward contracts, if any, whose purpose
is essentially speculative. A fund will not segregate assets to cover
forward contracts entered into for hedging purposes, including settlement
hedges, position hedges, and proxy hedges.
Successful use of currency management strategies will depend on FMR's
skill in analyzing currency values. Currency ma nagement strategies may
substantially change a fund's investment exposure to changes in currency
exchange rates and could result in losses to a fund if currencies do not
perform as FMR anticipates. For example, if a currency's value rose at a
time when FMR had hedged a fund by selling that currency in exchange for
dollars, a fund would not participate in the currency's appreciation. If
FMR hedges currency exposure through proxy hedges, a fund could realize
currency losses from both the hedge and the security posi tion if the two
currencies do not move in tandem. Similarly , if FMR increases a fund's
exposure to a foreign currency and that currency's value declines, a fund
will realize a loss. There is no assurance that FMR's use of currency
management strategies will be advantageous to a fund or that it will hedge
at appropriate time s .
FUNDS' RIGHTS AS A SHAREHOLDER. The funds do not intend to direct or
administer the day-to-day operations of any company. Each fund, however,
may exercise its rights as a shareholder and may communicate its views on
important matters of policy to management, the Board of Directors, and
shareholders of a company when FMR determines that such matters could have
a significant effect on the value of the fund's investment in the company.
The activities that a fund may engage in, either individually or in
conjunction with others, may include, among others, supporting or opposing
proposed changes in a company's corporate structure or business activities;
seeking changes in a company's directors or management; seeking changes in
a company's direction or policies; seeking the sale or reorganization of
the company or a portion of its assets; or supporting or opposing third
party takeover efforts. This area of corporate activity is increasingly
prone to litigation and it is possible that a fund could be involved in
lawsuits related to such activities. FMR will monitor such activities with
a view to mitigating, to the extent possible, the risk of litigation
against a fund and the risk of actual liability if a fund is involved in
litigation. No guarantee can be made, however, that litigation against a
fund will not be undertaken or liabilities incurred.
FUTURES AND OPTIONS. The following sections pertain to futures and options:
Asset Coverage for Futures and Options Positions, Combined Positions,
Correlation of Price Changes, Futures Contracts, Futures Margin Payments,
Limitations on Futures and Options Transactions, Liquidity of Options and
Futures Contracts, Options and Futures Relating to Foreign Currencies, OTC
Options, Purchasing Put and Call Options, and Writing Put and Call Options.
ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply
with guidelines established by the Securities and Exchange Commission with
respect to coverage of options and futures strategies by mutual funds, and
if the guidelines so require will set aside appropriate liquid assets in a
segregated custodial account in the amount prescribed. Securities held in a
segregated account cannot be sold while the futures or option strategy is
outstanding, unless they are replaced with other suitable assets. As a
result, there is a possibility that segregation of a large percentage of a
fund's assets could impede portfolio management or the fund's ability to
meet redemption requests or other current obligations.
COMBINED POSITIONS. A fund may purchase and write options in combination
with each other, or in combination with futures or forward contracts, to
adjust the risk and return characteristics of the overall position. For
example, a fund may purchase a put option and write a call option on the
same underlying instrument, in order to construct a combined position whose
risk and return characteristics are similar to selling a futures contract.
Another possible combined position would involve writing a call option at
one strike price and buying a call option at a lower price, in order to
reduce the risk of the written call option in the event of a substantial
price increase. Because combined options positions involve multiple trades,
they result in higher transaction costs and may be more difficult to open
and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of types
of exchange-traded options and futures contracts, it is likely that the
standardized contracts available will not match a fund's current or
anticipated investments exactly. The funds may invest in options and
futures contracts based on securities with different issuers, maturities,
or other characteristics from the securities in which they typically
invest, which involves a risk that the options or futures position will not
track the performance of a fund's other investments.
Options and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match a fund's
investments well. Options and futures prices are affected by such factors
as current and anticipated short-term interest rates, changes in volatility
of the underlying instrument, and the time remaining until expiration of
the contract, which may not affect security prices the same way. Imperfect
correlation may also result from differing levels of demand in the options
and futures markets and the securities markets, from structural differences
in how options and futures and securities are traded, or from imposition of
daily price fluctuation limits or trading halts. A fund may purchase or
sell options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to attempt to
compensate for differences in volatility between the contract and the
securities, although this may not be successful in all cases. If price
changes in a fund's options or futures positions are poorly correlated with
its other investments, the positions may fail to produce anticipated gains
or result in losses that are not offset by gains in other investments.
FUTURES CONTRACTS. When a fund purchases a futures contract, it agrees to
purchase a specified underlying instrument at a specified future date. When
a fund sells a futures contract, it agrees to sell the underlying
instrument at a specified future date. The price at which the purchase and
sale will take place is fixed when the fund enters into the contract. Some
currently available futures contracts are based on specific securities,
such as U.S. Treasury bonds or notes, and some are based on indices of
securities prices, such as the Standard & Poor's 500 Index (S&P 500).
Futures c an be held until their delivery dates, or can be closed out
before then if a liquid secondary market is available.
The value of a futures contract tends to increase and decrease in tandem
with the value of its underlying instrument. Therefore, purchasing futures
contracts will tend to increase a fund's exposure to positive and negative
price fluctuations in the underlying instrument, much as if it had
purchased the underlying instrument directly. When a fund sells a futures
contract, by contrast, the value of its futures position will tend to move
in a direction contrary to the market. Selling futures contracts,
therefore, will tend to offset both positive and negative market price
changes, much as if the underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is
not required to deliver or pay for the underlying instrument unless the
contract is held until the delivery date. However, both the purchaser and
seller are required to deposit "initial margin" with a futures broker,
known as a futures commission merchant (FCM), when the contract is entered
into. Initial margin deposits are typically equal to a percentage of the
contract's value. If the value of either party's position declines, that
party will be required to make additional "variation margin" payments to
settle the change in value on a daily basis. The party that has a gain may
be entitled to receive all or a portion of this amount. Initial and
variation margin payments do not constitute purchasing securities on margin
for purposes of a fund's investment limitations. In the event of the
bankruptcy of an FCM that holds margin on behalf of a fund, the fund may be
entitled to return of margin owed to it only in proportion to the amount
received by the FCM's other customers, potentially resulting in losses to
the fund.
LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each fund has filed a
notice of eligibility for exclusion from the definition of the term
"commodity pool operator" with the Commodity Futures Trading Commission
(CFTC) and the National Futures Association, which regulate trading in the
futures markets. The stock funds intend to comply with Rule 4.5 under the
Commodity Exchange Act, which limits the extent to which the funds can
commit assets to initial margin deposits and option premiums.
In addition, each fund will not: (a) sell futures contracts, purchase put
options, or write call options if, as a result, more than 25% of the fund's
total assets would be hedged with futures and options under normal
conditions; (b) purchase futures contracts or write put options if, as a
result, the fund's total obligations upon settlement or exercise of
purchased futures contracts and written put options would exceed 25% of its
total assets; or (c) purchase call options if, as a result, the current
value of option premiums for call options purchased by the fund would
exceed 5% of the fund's total assets. These limitations do not apply to
options attached to or acquired or traded together with their underlying
securities, and do not apply to securities that incorporate features
similar to options.
The above limitations on the funds' investments in futures contracts and
options, and the funds' policies regarding futures contracts and options
discussed elsewhere in this SAI , are not fundamental policies and
may be changed as regulatory agencies permit.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid
secondary market will exist for any particular options or futures contract
at any particular time. Options may have relatively low trading volume and
liquidity if their strike prices are not close to the underlying
instrument's current price. In addition, exchanges may establish daily
price fluctuation limits for options and futures contracts, and may halt
trading if a contract's price moves upward or downward more than the limit
in a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for a fund to
enter into new positions or close out existing positions. If the secondary
market for a contract is not liquid because of price fluctuation limits or
otherwise, it could prevent prompt liquidation of unfavorable positions,
and potentially could require a fund to continue to hold a position until
delivery or expiration regardless of changes in its value. As a result, a
fund's access to other assets held to cover its options or futures
positions could also be impaired.
OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures
contracts are similar to forward currency exchange contracts, except that
they are traded on exchanges (and have margin requirements) and are
standardized as to contract size and delivery date. Most currency futures
contracts call for payment or delivery in U.S. dollars. The underlying
instrument of a currency option may be a foreign currency, which generally
is purchased or delivered in exchange for U.S. dollars, or may be a futures
contract. The purchaser of a currency call obtains the right to purchase
the underlying currency, and the purchaser of a currency put obtains the
right to sell the underlying currency.
The uses and risks of currency options and futures are similar to options
and futures relating to securities or indices, as discussed above. The
funds may purchase and sell currency futures and may purchase and write
currency options to increase or decrease their exposure to different
foreign currencies. A fund may also purchase and write currency options in
conjunction with each other or with currency futures or forward contracts.
Currency futures and options values can be expected to correlate with
exchange rates, but may not reflect other factors that affect the value of
a fund's investments. A currency hedge, for example, should protect a
Yen-denominated security from a decline in the Yen, but will not protect a
fund against a price decline resulting from deterioration in the issuer's
creditworthiness. Because the value of a fund's foreign-denominated
investments changes in response to many factors other than exchange rates,
it may not be possible to match the amount of currency options and futures
to the value of the fund's investments exactly over time.
OTC OPTIONS. Unlike exchange-traded options, which are standardized with
respect to the underlying instrument, expiration date, contract size, and
strike price, the terms of over-the-counter (OTC) options (options not
traded on exchanges) generally are established through negotiation with the
other party to the option contract. While this type of arrangement allows
the funds greater flexibility to tailor an option to its needs, OTC options
generally involve greater credit risk than exchange-traded options, which
are guaranteed by the clearing organization of the exchanges where they are
traded.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund obtains
the right (but not the obligation) to sell the option's underlying
instrument at a fixed strike price. In return for this right, the fund pays
the current market price for the option (known as the option premium).
Options have various types of underlying instruments, including specific
securities, indices of securities prices, and futures contracts. The fund
may terminate its position in a put option it has purchased by allowing it
to expire or by exercising the option. If the option is allowed to expire,
the fund will lose the entire premium it paid. If the fund exercises the
option, it completes the sale of the underlying instrument at the strike
price. A fund may also terminate a put option position by closing it out in
the secondary market at its current price, if a liquid secondary market
exists.
The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price
does not fall enough to offset the cost of purchasing the option, a put
buyer can expect to suffer a loss (limited to the amount of the premium
paid, plus related transaction costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right to
purchase, rather than sell, the underlying instrument at the option's
strike price. A call buyer typically attempts to participate in potential
price increases of the underlying instrument with risk limited to the cost
of the option if security prices fall. At the same time, the buyer can
expect to suffer a loss if security prices do not rise sufficiently to
offset the cost of the option.
WRITING PUT AND CALL OPTIONS. When a fund writes a put option, it takes the
opposite side of the transaction from the option's purchaser. In return for
receipt of the premium, the fund assumes the obligation to pay the strike
price for the option's underlying instrument if the other party to the
option chooses to exercise it. When writing an option on a futures
contract, the fund will be required to make margin payments to an FCM as
described above for futures contracts. A fund may seek to terminate its
position in a put option it writes before exercise by closing out the
option in the secondary market at its current price. If the secondary
market is not liquid for a put option the fund has written, however, the
fund must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes, and must continue to set aside
assets to cover its position.
If security prices rise, a put writer would generally expect to profit,
although its gain would be limited to the amount of the premium it
received. If security prices remain the same over time, it is likely that
the writer will also profit, because it should be able to close out the
option at a lower price. If security prices fall, the put writer would
expect to suffer a loss. This loss should be less than the loss from
purchasing the underlying instrument directly, however, because the premium
received for writing the option should mitigate the effects of the decline.
Writing a call option obligates a fund to sell or deliver the option's
underlying instrument, in return for the strike price, upon exercise of the
option. The characteristics of writing call options are similar to those of
writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the
same time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price, even if its current value is
greater, a call writer gives up some ability to participate in security
price increases.
ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in
the ordinary course of business at approximately the prices at which they
are valued. Under the supervision of the Board of Trustees, FMR determines
the liquidity of a fund's investments and, through reports from FMR, the
Board monitors investments in illiquid instruments. In determining the
liquidity of a fund's investments, FMR may consider various factors,
including (1) the frequency of trades and quotations, (2) the number of
dealers and prospective purchasers in the marketplace, (3) dealer
undertakings to make a market, (4) the nature of the security (including
any demand or tender features), and (5) the nature of the marketplace for
trades (including the ability to assign or offset the fund's rights and
obligations relating to the investment).
For the money market fund, investments currently considered by the fund to
be illiquid include repurchase agreements not entitling the holder to
payment of principal and interest within seven days. Also, FMR may
determine some restricted securities and time deposits to be illiquid.
Investments currently considered by the stock funds to be illiquid include
repurchase agreements not entitling the holder to payment of principal and
interest within seven days, over-the-counter options, and non-government
stripped fixed-rate mortgage-backed securities. Also, FMR may determine
some restricted securities, government-stripped fixed-rate mortgage-backed
securities, loans and other direct debt instruments, emerging market
securities, and swap agreements to be illiquid. However, with respect to
over-the-counter options a fund writes, all or a portion of the value of
the underlying instrument may be illiquid depending on the assets held to
cover the option and the nature and terms of any agreement the fund may
have to close out the option before expiration.
In the absence of market quotations, illiquid investments for the money
market fund are valued for purposes of monitoring amortized cost valuation,
and for the stock funds are priced, at fair value as determined in good
faith by a committee appointed by the Board of Trustees. If through a
change in values, net assets, or other circumstances, a fund were in a
position where more than 10% of its net assets was invested in illiquid
securities, it would seek to take appropriate steps to protect liquidity.
INDEXED SECURITIES. A fund may purchase securities whose prices are
indexed to the prices of other securities, securities indices, currencies,
precious metals or other commodities, or other financial indicators.
Indexed securities typically, but not always, are debt securities or
deposits whose value at maturity or coupon rate is determined by reference
to a specific instrument or statistic. Gold-indexed securities, for
example, typically provide for a maturity value that depends on the price
of gold, resulting in a security whose price tends to rise and fall
together with gold prices. Currency-indexed securities typically are
short-term to intermediate-term debt securities whose maturity values or
interest rates are determined by reference to the values of one or more
specified foreign currencies, and may offer higher yields than U.S.
dollar-denominated securities of equivalent issuers. Currency-indexed
securities may be positively or negatively indexed; that is, their maturity
value may increase when the specified currency value increases, resulting
in a security that performs similarly to a foreign-denominated instrument,
or their maturity value may decline when foreign currencies increase,
resulting in a security whose price characteristics are similar to a put on
the underlying currency. Currency-indexed securities may also have prices
that depend on the values of a number of different foreign currencies
relative to each other.
The performance of indexed securities depends to a great extent on the
performance of the security, currency, or other instrument to which they
are indexed, and may also be influenced by interest rate changes in the
United States and abroad. At the same time, indexed securities are subject
to the credit risks associated with the issuer of the security, and their
values may decline substantially if the issuer's creditworthiness
deteriorates. Recent issuers of indexed securities have included banks,
corporations, and certain U.S. Government agencies. Indexed securities may
be more volatile than the underlying instruments.
American Gold Portfolio, Natural Resources Portfolio, and Precious
Metals and Minerals Portfolio may consider purchasing securities indexed to
the price of precious metals as an alternative to direct investments in
precious metals. The funds will only buy precious metals-indexed securities
when they are satisfied with the creditworthiness of the issuers liable for
payment. The securities generally will earn a nominal rate of interest
while held by a fund, and may have maturities of one year or more. In
addition, the securities may be subject to being put by a fund to the
issuer, with payment to be received on no more than seven days' notice. The
put feature would ensure the liquidity of the notes in the absence of an
active secondary market.
INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive order
issued by the SEC, each fund has received permission to lend money to, and
borrow money from, other funds advised by FMR or its affiliates. Interfund
loans and borrowings normally extend overnight, but can have a maximum
duration of seven days. Loans may be called on one day's notice. A fund
will lend through the program only when the returns are higher than those
available from an investment in repurchase agreements, and will borrow
through the program only when the costs are equal to or lower than the cost
of bank loans. A fund may have to borrow from a bank at a higher interest
rate if an interfund loan is called or not renewed. Any delay in repayment
to a lending fund could result in a lost investment opportunity or
additional borrowing costs.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS are interests in amounts owed by a
corporate, governmental, or other borrower to another party. They may
represent amounts owed to lenders or lending syndicates (loans and loan
participations), to suppliers of goods or services (trade claims or other
receivables), or to other parties. Direct debt instruments involve a risk
of loss in case of default or insolvency of the borrower and may offer less
legal protection to the fund in the event of fraud or misrepresentation. In
addition, loan participations involve a risk of insolvency of the lending
bank or other financial intermediary. Direct debt instruments may also
include standby financing commitments that obligate a fund to supply
additional cash to the borrower on demand.
LOWER-QUALITY DEBT SECURITIES. A fund may purchase lower-quality
debt securities (those rated below Baa by Moody's Investors Service, Inc.
or BBB by Standard and Poor's, and unrated securities judged by FMR to be
of equivalent quality) that have poor protection with respect to the
payment of interest and repayment of principal or may be in default. These
securities are often considered to be speculative and involve greater risk
of loss or price changes due to changes in the issuer's capacity to pay.
The market prices of lower-quality debt securities may fluctuate more than
those of higher-quality debt securities and may decline significantly in
periods of general economic difficulty, which may follow periods of rising
interest rates.
While the market for high-yield corporate debt securities has been in
existence for many years and has weathered previous economic downturns, the
1980s brought a dramatic increase in the use of such securities to fund
highly leveraged corporate acquisitions and restructurings. Past experience
may not provide an accurate indication of the future performance of the
high-yield bond market, especially during periods of economic recession.
The market for lower-quality debt securities may be thinner and less active
than that for higher-quality debt securities, which can adversely affect
the prices at which the former are sold. If market quotations are not
available, lower-quality debt securities will be valued in accordance with
procedures established by the Board of Trustees, including the use of
outside pricing services. Judgment plays a greater role in valuing
high-yield corporate debt securities than is the case for securities for
which more external sources for quotations and last-sale information are
available. Adverse publicity and changing investor perceptions may affect
the ability of outside pricing services to value lower-quality debt
securities and a fund's ability to sell these securities.
Since the risk of default is higher for lower-quality debt securities,
FMR's research and credit analysis are an especially important part of
managing securities of this type held by a fund. In considering investments
for the fund, FMR will attempt to identify those issuers of high-yielding
securities whose financial condition is adequate to meet future
obligations, has improved, or is expected to improve in the future. FMR's
analysis focuses on relative values based on such factors as interest or
dividend coverage, asset coverage, earnings prospects, and the experience
and managerial strength of the issuer.
Each fund may choose, at its expense or in conjunction with others, to
pursue litigation or otherwise to exercise its rights as a security holder
to seek to protect the interests of security holders if it determines this
to be in the best interest of the fund's shareholders.
MONEY MARKET SECURITIES are high-quality, short-term obligations. Some
money market securities employ a trust or other similar structure to modify
the maturity, price characteristics, or quality of financial assets. For
example, put features can be used to modify the maturity of a security or
interest rate adjustment features can be used to enhance price stability.
If the structure does not perform as intended, adverse tax or investment
consequences may result. Neither the Internal Revenue Service (IRS) nor any
other regulatory authority has ruled definitively on certain legal issues
presented by structured securities. Future tax or other regulatory
determinations could adversely affect the value, liquidity, or tax
treatment of the income received from these securities or the nature and
timing of distributions made by the fund.
MUNICIPAL SECURITIES are issued to raise money for a variety of public or
private purposes, including general financing for state and local
governments, or financing for specific projects or public facilities. They
may be issued in anticipation of future revenues and may be backed by the
full taxing power of a municipality, the revenues from a specific project,
or the credit of a private organization. The value of some or all municipal
securities may be affected by uncertainties in the municipal market related
to legislation or litigation involving the taxation of municipal securities
or the rights of municipal securities holders. A fund may own a municipal
security directly or through a participation interest.
PUT FEATURES entitle the holder to sell a security back to the issuer or a
third party at any time or at specified intervals. They are subject to the
risk that the put provider is unable to honor the put feature (purchase the
security). Put providers often support their ability to buy securities on
demand by obtaining letters of credit or other guarantees from other
entities. Demand features, standby commitments, and tender options are
types of put features.
QUALITY AND MATURITY (MONEY MARKET FUND). Pursuant to procedures adopted by
the Board of Trustees, the fund may purchase only high-quality securities
that FMR believes present minimal credit risks. To be considered
high-quality, a security must be rated in accordance with applicable rules
in one of the two highest categories for short-term securities by at least
two nationally recognized rating services (or by one, if only one rating
service has rated the security); or, if unrated, judged to be of equivalent
quality by FMR.
High-quality securities are divided into "first tier" and "second tier"
securities. First tier securities are those deemed to be in the highest
rating category (e.g., Standard & Poor's A-1), and second tier securities
are those deemed to be in the second highest rating category (e.g.,
Standard & Poor's A-2). Split-rated securities may be determined to be
either first tier or second tier based on applicable regulations.
The fund may not invest more than 5% of its total assets in second tier
securities. In addition, the fund may not invest more than 1% of its total
assets or $1 million (whichever is greater) in the second tier securities
of a single issuer.
The fund currently intends to limit its investments to securities with
remaining maturities of 397 days or less, and to maintain a dollar-weighted
average maturity of 90 days or less. When determining the maturity of a
security, the fund may look to an interest rate reset or demand feature.
REAL ESTATE-RELATED INSTRUMENTS include real estate investment trusts,
commercial and residential mortgage-backed securities, and real estate
financings. Real estate-related instruments are sensitive to factors such
as real estate values and property taxes, interest rates, cash flow of
underlying real estate assets, overbuilding, and the management skill and
creditworthiness of the issuer. Real estate-related instruments may also be
affected by tax and regulatory requirements, such as those relating to the
environment.
REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a
security and simultaneously commits to sell that security back to the
original seller at an agreed-upon price. The resale price reflects the
purchase price plus an agreed-upon incremental amount which is unrelated to
the coupon rate or maturity of the purchased security. To protect the fund
from the risk that the original seller will not fulfill its obligation, the
securities are held in an account of the fund at a bank, marked-to-market
daily, and maintained at a value at least equal to the sale price plus the
accrued incremental amount. While it does not presently appear possible to
eliminate all risks from these transactions (particularly the possibility
that the value of the underlying security will be less than the resale
price, as well as delays and costs to a fund in connection with bankruptcy
proceedings), it is each fund's current policy to engage in repurchase
agreement transactions with parties whose creditworthiness has been
reviewed and found satisfactory by FMR.
RESTRICTED SECURITIES generally can be sold in privately negotiated
transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where
registration is required, a fund may be obligated to pay all or part of the
registration expense and a considerable period may elapse between the time
it decides to seek registration and the time it may be permitted to sell a
security under an effective registration statement. If, during such a
period, adverse market conditions were to develop, a fund might obtain a
less favorable price than prevailed when it decided to seek registration of
the security. However, in general, the money market fund anticipates
holding restricted securities to maturity or selling them in an exempt
transaction.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund
sells a portfolio instrument to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase the instrument
at a particular price and time. While a reverse repurchase agreement is
outstanding, the fund will maintain appropriate liquid assets in a
segregated custodial account to cover its obligation under the agreement. A
fund will enter into reverse repurchase agreements only with parties whose
creditworthiness has been found satisfactory by FMR. Such transactions may
increase fluctuations in the market value of the fund's assets and may be
viewed as a form of leverage.
SECURITIES LENDING. A stock fund may lend securities to parties such
as broker-dealers or institutional investors, including Fidelity Brokerage
Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange and
a subsidiary of FMR Corp.
Securities lending allows a fund to retain ownership of the securities
loaned and, at the same time, to earn additional income. Since there may be
delays in the recovery of loaned securities, or even a loss of rights in
collateral supplied should the borrower fail financially, loans will be
made only to parties deemed by FMR to be of good standing. Furthermore,
they will only be made if, in FMR's judgment, the consideration to be
earned from such loans would justify the risk.
FMR understands that it is the current view of the SEC Staff that a fund
may engage in loan transactions only under the following conditions: (1)
the fund must receive 100% collateral in the form of cash or cash
equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the
borrower must increase the collateral whenever the market value of the
securities loaned (determined on a daily basis) rises above the value of
the collateral; (3) after giving notice, the fund must be able to terminate
the loan at any time; (4) the fund must receive reasonable interest on the
loan or a flat fee from the borrower, as well as amounts equivalent to any
dividends, interest, or other distributions on the securities loaned and to
any increase in market value; (5) the fund may pay only reasonable
custodian fees in connection with the loan; and (6) the Board of Trustees
must be able to vote proxies on the securities loaned, either by
terminating the loan or by entering into an alternative arrangement with
the borrower.
Cash received through loan transactions may be invested in any security in
which a fund is authorized to invest. Investing this cash subjects that
investment, as well as the security loaned, to market forces (i.e., capital
appreciation or depreciation).
SHORT SALES "AGAINST THE BOX." A fund may sell securities short when it
owns or has the right to obtain securities equivalent in kind or amount to
the securities sold short. Short sales could be used to protect the net
asset value per share of the money market fund in anticipation of
increased interest rates, without sacrificing the current yield of the
securities sold short. If a fund enters into a short sale against the box,
it will be required to set aside securities equivalent in kind and amount
to the securities sold short (or securities convertible or exchangeable
into such securities) and will be required to hold such securities while
the short sale is outstanding. The fund will incur transaction
costs, including interest expenses, in connection with opening,
maintaining, and closing short sales against the box.
SOURCES OF CREDIT OR LIQUIDITY SUPPORT. FMR may rely on its evaluation of
the credit of a bank or other entity in determining whether to purchase a
security supported by a letter of credit guarantee, put or demand feature,
insurance or other source of credit or liquidity. In evaluating the credit
of a foreign bank or other foreign entities, FMR will consider whether
adequate public information about the entity is available and whether the
entity may be subject to unfavorable political or economic developments,
currency controls, or other government restrictions that might affect its
ability to honor its commitment.
STRIPPED GOVERNMENT SECURITIES. Stripped government securities are
created by separating the income and principal components of a U.S.
Government security and selling them separately. STRIPS (Separate
Trading of Registered Interest and Principal of Securities) are created
when the coupon payments and the principal payment are stripped from an
outstanding U.S. Treasury security by a Federal Reserve Bank.
Privately stripped government securities are created when a dealer deposits
a U.S. Treasury security or other U.S. Government security
with a custodian for safekeeping. The custodian issues separate receipts
for the coupon payments and the principal payment, which the dealer
then sells. Proprietary receipts, such as Certificates of Accrual on
Treasury Securities (CATS) and Treasury Investment Growth Receipts
(TIGRS), and generic receipts, such as Treasury Receipts (TRs), are
privately stripped U.S. Treasury securities.
Because the SEC does not consider privately stripped government
securities to be U.S. Government securities for purposes of Rule 2a-7, the
money market fund must evaluate them as it would non-government securities
pursuant to regulatory guidelines applicable to all money market funds.
SWAP AGREEMENTS. Swap agreements can be individually negotiated and
structured to include exposure to a variety of different types of
investments or market factors. Depending on their structure, swap
agreements may increase or decrease a fund's exposure to long- or
short-term interest rates (in the United States or abroad), foreign
currency values, mortgage securities, corporate borrowing rates, or other
factors such as security prices or inflation rates. Swap agreements can
take many different forms and are known by a variety of names. The stock
funds are not limited to any particular form of swap agreement if FMR
determines it is consistent with a fund's investment objective and
policies.
In a typical cap or floor agreement, one party agrees to make payments only
under specified circumstances, usually in return for payment of a fee by
the other party. For example, the buyer of an interest rate cap obtains the
right to receive payments to the extent that a specified interest rate
exceeds an agreed-upon level, while the seller of an interest rate floor is
obligated to make payments to the extent that a specified interest rate
falls below an agreed-upon level. An interest rate collar combines elements
of buying a cap and selling a floor.
Swap agreements will tend to shift a fund's investment exposure from one
type of investment to another. For example, if the fund agreed to exchange
payments in dollars for payments in foreign currency, the swap agreement
would tend to decrease the fund's exposure to U.S. interest rates and
increase its exposure to foreign currency and interest rates. Caps and
floors have an effect similar to buying or writing options. Depending on
how they are used, swap agreements may increase or decrease the overall
volatility of a fund's investments and its share price.
The most significant factor in the performance of swap agreements is the
change in the specific interest rate, currency, or other factors that
determine the amounts of payments due to and from a fund. If a swap
agreement calls for payments by the fund, the fund must be prepared to make
such payments when due. In addition, if the counterparty's creditworthiness
declined, the value of a swap agreement would be likely to decline,
potentially resulting in losses. Each fund expects to be able to eliminate
its exposure under swap agreements either by assignment or other
disposition, or by entering into an offsetting swap agreement with the same
party or a similarly creditworthy party.
A fund will maintain appropriate liquid assets in a segregated
custodial account to cover its current obligations under swap agreements.
If a fund enters into a swap agreement on a net basis, it will segregate
assets with a daily value at least equal to the excess, if any, of the
fund's accrued obligations under the swap agreement over the accrued amount
the fund is entitled to receive under the agreement. If a fund enters into
a swap agreement on other than a net basis, it will segregate assets with a
value equal to the full amount of the fund's accrued obligations under the
agreement.
VARIABLE AND FLOATING RATE SECURITIES (MONEY MARKET FUND ) provide
for periodic adjustments of the interest rate paid on the security.
Variable rate securities provide for a specified periodic adjustment in the
interest rate, while floating rate securities have interest rates that
change whenever there is a change in a designated benchmark rate. Some
variable or floating rate securities have put features.
PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed on
behalf of each fund by FMR pursuant to authority contained in the
management contract. If FMR grants investment management authority to the
sub-advisers (see the section entitled "Management Contracts"), the
sub-advisers are authorized to place orders for the purchase and sale of
portfolio securities, and will do so in accordance with the policies
described below. FMR is also responsible for the placement of transaction
orders for other investment companies and accounts for which it or its
affiliates act as investment adviser. Securities purchased and sold by the
money market fund will generally be traded on a net basis (i.e., without
commission). In selecting broker-dealers, subject to applicable limitations
of the federal securities laws, FMR considers various relevant factors,
including, but not limited to: the size and type of the transaction; the
nature and character of the markets for the security to be purchased or
sold; the execution efficiency, settlement capability, and financial
condition of the broker-dealer firm; the broker-dealer's execution services
rendered on a continuing basis; the reasonableness of any commissions;
and arrangements for payment of fund expenses. Generally,
commissions for investments traded on foreign exchanges will be higher than
for investments traded on U.S. exchanges and may not be subject to
negotiation.
The funds may execute portfolio transactions with broker-dealers who
provide research and execution services to the funds or other accounts over
which FMR or its affiliates exercise investment discretion. Such services
may include advice concerning the value of securities; the advisability of
investing in, purchasing, or selling securities; and the availability of
securities or the purchasers or sellers of securities. In addition, such
broker-dealers may furnish analyses and reports concerning issuers,
industries, securities, economic factors and trends, portfolio strategy,
and performance of accounts; effect securities transactions, and perform
functions incidental thereto (such as clearance and settlement). FMR
maintains a listing of broker-dealers who provide such services on a
regular basis. However, as many transactions on behalf of the money market
fund are placed with broker-dealers (including broker-dealers on the list)
without regard to the furnishing of such services, it is not possible to
estimate the proportion of such transactions directed to such
broker-dealers solely because such services were provided. The selection of
such broker-dealers generally is made by FMR (to the extent possible
consistent with execution considerations) in accordance with a ranking of
broker-dealers determined periodically by FMR's investment staff based upon
the quality of research and execution services provided. The selection of
such broker-dealers for the money market fund generally is made by FMR (to
the extent possible consistent with execution considerations) based upon
the quality of research and execution services provided.
The receipt of research from broker-dealers that execute transactions on
behalf of the funds may be useful to FMR in rendering investment management
services to the funds or its other clients, and conversely, such research
provided by broker-dealers who have executed transaction orders on behalf
of other FMR clients may be useful to FMR in carrying out its obligations
to the funds. The receipt of such research has not reduced FMR's normal
independent research activities; however, it enables FMR to avoid the
additional expenses that could be incurred if FMR tried to develop
comparable information through its own efforts.
Subject to applicable limitations of the federal securities laws,
broker-dealers may receive commissions for agency transactions that are in
excess of the amount of commissions charged by other broker-dealers in
recognition of their research and execution services. In order to cause
each fund to pay such higher commissions, FMR must determine in good faith
that such commissions are reasonable in relation to the value of the
brokerage and research services provided by such executing broker-dealers,
viewed in terms of a particular transaction or FMR's overall
responsibilities to the funds and its other clients. In reaching this
determination, FMR will not attempt to place a specific dollar value on the
brokerage and research services provided, or to determine what portion of
the compensation should be related to those services.
FMR is authorized to use research services provided by, and to place
portfolio transactions with, brokerage firms that have provided assistance
in the distribution of shares of the funds or shares of other Fidelity
funds to the extent permitted by law. FMR may use research services
provided by and place agency transactions with Fidelity Brokerage Services,
Inc. (FBSI) and Fidelity Brokerage Services (FBS), subsidiaries of FMR
Corp., if the commissions are fair, reasonable, and comparable to
commissions charged by non-affiliated, qualified brokerage firms for
similar services. From September 1992 through December 1994, FBS operated
under the name Fidelity Brokerage Services Limited, Inc. (FBSL). As of
January 1995, FBSL was converted to an unlimited liability company an d
assume d the name FBS.
FMR may allocate brokerage transactions to broker-dealers who have entered
into arrangements with FMR under which the broker-dealer allocates a
portion of the commissions paid by each fund toward payment of the fund's
expenses, such as transfer agent fees or custodian fees. The transaction
quality must, however, be comparable to those of other qualified
broker-dealers.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members of
national securities exchanges from executing exchange transactions for
accounts which they or their affiliates manage, unless certain requirements
are satisfied. Pursuant to such requirements, the Board of Trustees has
authorized FBSI to execute portfolio transactions on national securities
exchanges in accordance with approved procedures and applicable SEC rules.
Each fund's Trustees periodically review FMR's performance of its
responsibilities in connection with the placement of portfolio transactions
on behalf of the funds and review the commissions paid by each fund over
representative periods of time to determine if they are reasonable in
relation to the benefits to the funds.
The stock funds' (except Cyclical Industries and Natural Resources)
portfolio turnover rates for the fiscal years ended February 28, 1997
and February 29, 1996 are presented in the table below. The stock funds'
annual portfolio turnover rates may be substantially greater than those of
other equity investment companies. The significantly higher or lower
portfolio turnover rates from year to year are primarily the result of
fluctuations in asset levels and FMR's assessment of changing economic
conditions throughout each year for various industries. High turnover may
also be the result of short-term shareholder trading activity which
increases brokerage and operating costs. This shareholder activity may also
result in required purchases or sales of portfolio securities at
disadvantageous times. Cyclical Industries' and Natural Resources'
annualized portfolio turnover rates are not expected to exceed 200% in the
first fiscal period.
TURNOVER RATES FISCAL 1997 FISCAL 1996
Air Transportation 469% 504%
American Gold 63% 56%
Automotive 175% 61%
Biotechnology 41% 67%
Brokerage and Investment Management 16% 166%
Chemicals 207% 87%
Computers 255% 129%
Construction and Housing 270% 139%
Consumer Industries 340% 601%
Defense and Aerospace 219% 267%
Developing Communications 202% 249%
Electronics 341% 366 %
Energy 87% 97%
Energy Service 167% 223%
Environmental Services 252% 138%
Financial Services 80% 125 %
Food and Agriculture 91% 124 %
Health Care 59% 54 %
Home Finance 78% 81 %
Industrial Equipment 261% 115 %
Industrial Materials 105% 138 %
Insurance 142% 164 %
Leisure 127% 141 %
Medical Delivery 78% 132 %
Multimedia 99% 223 %
Natural Gas 283% 79 %
Paper and Forest Products 180% 78 %
Precious Metals and Minerals 54% 53 %
Regional Banks 43% 103 %
Retailing 278% 235 %
Software and Computer Services 279% 183 %
Technology 549% 112 %
Telecommunications 175% 89 %
Transportation 148% 175 %
Utilities Growth 31% 65 %
The brokerage commissions incurred by each equity fund (except Cyclical
Industries and Natural Resources) for the fiscal years ended February 1997,
1996, and 1995 are also listed in the table on page . Any significant
changes in brokerage commissions paid by the funds from year to year are
primarily a result of changing asset levels throughout the year. During the
fiscal period ended February 1997, the funds paid commissions to brokerage
firms that provided research services, although the provision of such
services was not necessarily a factor in the placement of all of this
business with these firms.
BROKERAGE COMMISSIONS. The table on page lists the total brokerage
commissions; the percentage of brokerage commissions paid to brokerage
firms that provided research services; and the dollar amount of commissions
paid to FBSI and FBS for fiscal 1997, 1996, and 1995. The
tables also list the percentage of each fund's aggregate brokerage
commissions paid to FBSI and FBS during the 199 7 , 199 6 , and
199 5 fiscal years, as well as the percentage of each fund's
aggregate dollar amount of transactions executed through FBSI and FBS
during the same periods .
% of % of
% of % of Transactions Transactions
Fiscal % Paid to Commissions Commissions Effected Effected
Period Ended Firms Providing Paid Paid through through
February 28 Total Research To FBSI To FBS To FBSI To FBS FBSI FBS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AIR TRANSPORT-
ATION
1997 $ 588,326 85% $ 110,395 $ 609 19% 0 33% 0
1996 $ 686,690 95% $ 108,868 $ 12,126 16% 2% 38% 1%
1995 $ 44,221 95% $ 11,047 $ 858 25% 2% 56% 1%
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
AMERICAN
GOLD
1997 $ 898,281 94% $ 82,611 $ 0 9% 0 14% 0
1996 $ 890,082 95% $ 341,569 $ 0 38% 0 47% 0
1995 $ 434,646 96% $ 66,393 $ 0 15% 0 28% 0
AUTOMOTIVE
1997 $ 422,985 90% $ 66,744 $ 23,371 16% 6% 27% 3%
1996 $ 101,868 89% $ 13,806 $ 9,408 14% 9% 26% 8%
1995 $ 261,551 92% $ 62,506 $ 6,340 24% 2% 33% 1%
BIOTECHNOLOGY
1997 $ 466,616 64% $ 62,674 $ 1,784 13% 0 23% 0
1996 $ 514,556 92% $ 141,230 $ 22,319 27% 4% 41% 2%
1995 $ 269,543 98% $ 86,356 $ -0 32% 0 35% 0
BROKERAGE AND
INVESTMENT
MANAGEMENT
1997 $ 318,063 88% $ 61,662 $ 0 19% 0 25% 0
1996 $ 152,008 88% $ 18,355 $ 0 12% 0 25% 0
1995 $ 285,000 99% $ 9,202 $ 0 3% 0 10% 0
CHEMICALS
1997 $ 442,545 85% $ 71,711 $ 31,240 16% 7% 32% 4%
1996 $ 148,858 95% $ 69,929 $ 452 47% 0 62% 0
1995 $ 299,801 85% $ 92,389 $ 38,585 31% 13% 43% 0
COMPUTERS
1997 $ 1,247,598 93% $ 198,215 $ 0 16% 0 23% 0
1996 $ 666,974 92% $ 88,690 $ 0 13% 0 25% 0
1995 $ 340,960 98% $ 154,477 $ 0 45% 0 59%
CONSTRUCTION
AND HOUSING
1997 $ 348,359 84% $ 63,646 $ 0 18% 0 26% 0
1996 $ 145,931 88% $ 27,836 $ 0 19% 0 32% 0
1995 $ 83,667 93% $ 22,274 $ 0 27% 0 41% 0
CONSUMER
INDUSTRIES
1997 $ 121,479 72% $ 29,979 $ 0 25% 0 36% 0
1996 $ 227,375 94% $ 91,856 $ 0 40% 0 51% 0
1995 $ 37,144 95% $ 14,756 $ 0 40% 0 50% 0
DEFENSE AND
AEROSPACE
1997 $ 170,650 80% $ 24,182 $ 0 14% 0 28% 0
1996 $ 84,977 83% $ 36,879 $ 0 43% 0 60% 0
1995 $ 12,412 97% $ 6,197 $ 0 50% 0 69% 0
DEVELOPING
COMMUNICATI
ONS
1997 $ 657,790 83% $ 92,344 $ 24,230 14% 4% 22% 3%
1996 $ 842,041 92% $ 190,186 $ 10,041 23% 1% 29% 1%
1995 $ 815,766 97% $ 178,340 $ 2,788 22% 0 31% 0
ELECTRONICS
1997 $ 2,768,382 91% $ 595,711 $ 0 22% 0 32% 0
1996 $ 2,508,628 98% $ 395,989 $ 0 16% 0 26% 0
1995 $ 311,242 97% $ 138,231 $ 0 44% 0 53% 0
</TABLE>
% of % of
% of % of Transactions Transactions
Fiscal % Paid to Commissions Commissions Effected Effected
Period Ended Firms Providing Paid Paid through through
February 28 Total Research To FBSI To FBS To FBSI To FBS FBSI FBS
ENERGY
1997 $ 275,437 95% $ 53,327 $ 0 19% 0 28% 0
1996 $ 212,221 93% $ 60,047 $ 0 28% 0 34% 0
1995 $ 284,436 91% $ 96,604 $ 0 34% 0 45% 0
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ENERGY SERVICE
1997 $ 971,677 83% $ 263,380 $ 1,026 27% 0 34% 0
1996 $ 708,875 95% $ 376,373 $ 0 53% 0 64% 0
1995 $ 227,450 91% $ 105,206 $ 0 46% 0 52% 0
ENVIRONMENTAL
SERVICES
1997 $ 240,792 82% $ 42,243 $ 0 18% 0 24% 0
1996 $ 128,959 95% $ 36,310 $ 0 28% 0 35% 0
1995 $ 148,268 97% $ 44,929 $ 0 30% 0 41% 0
FINANCIAL
SERVICES
1997 $ 330,933 96% $ 77,580 $ 0 23% 0 36% 0
1996 $ 286,790 96% $ 115,231 $ 0 40% 0 45% 0
1995 $ 246,696 97% $ 56,906 $ 0 23% 0 34% 0
FOOD AND
AGRICULTURE
1997 $ 439,321 73% $ 97,562 $ 0 22% 0 25% 0
1996 $ 367,085 88% $ 213,864 $ 0 58% 0 67% 0
1995 $ 330,566 95% $ 168,049 $ 0 51% 0 57% 0
HEALTH CARE
1997 $ 1,330,539 89% $ 208,545 $ 19,436 16% 1% 31% 1%
1996 $ 946,588 88% $ 226,621 $ 63,489 24% 7% 41% 4%
1995 $ 1,456,527 97% $ 270,239 $ 2,567 19% 0 27% 0
HOME FINANCE
1997 $ 824,781 89% $ 201,617 $ 0 24% 0 31% 0
1996 $ 584,457 97% $ 139,402 $ 0 24% 0 30% 0
1995 $ 251,035 97% $ 87,018 $ 0 35% 0 39% 0
INDUSTRIAL
EQUIPMENT
1997 $ 372,936 82% $ 78,288 $ 1,152 21% 0 30% 0
1996 $ 178,940 93% $ 65,425 $ 0 37% 0 51% 0
1995 $ 300,847 97% $ 59,687 $ 0 20% 0 27% 0
INDUSTRIAL
MATERIALS
1997 $ 281,500 92% $ 37,253 $ 0 13% 0 27% 0
1996 $ 628,984 94% $ 112,184 $ 4,705 18% 1% 31% 1%
1995 $ 420,047 98% $ 73,573 $ 0 18% 0 27% 0
INSURANCE
1997 $ 51,916 56% $ 12,029 $ 0 23% 0 23% 0
1996 $ 52,255 87% $ 28,422 $ 0 54% 0 65% 0
1995 $ 41,494 90% $ 22,909 $ 0 55% 0 69% 0
LEISURE
1997 $ 234,434 85% $ 56,198 $ 0 24% 0 31% 0
1996 $ 241,001 88% $ 61,874 $ 0 26% 0 32% 0
1995 $ 216,511 88% $ 55,302 $ 0 26% 0 37% 0
MEDICAL
DELIVERY
1997 $ 409,668 94% $ 62,985 $ 0 15% 0 26% 0
1996 $ 430,449 94% $ 101,216 $ 0 24% 0 33% 0
1995 $ 444,242 96% $ 112,144 $ 0 25% 0 28% 0
MULTIMEDIA
1997 $ 181,181 84% $ 19,584 $ 0 11% 0 16% 0
1996 $ 429,967 86% $ 76,336 $ 0 18% 0 29% 0
1995 $ 79,153 93% $ 12,190 $ 0 15% 0 25% 0
NATURAL GAS
1997 $ 591,400 84% $ 75,903 $ 904 13% 0 14% 0
1996 $ 175,038 93% $ 87,403 $ 0 50% 0 61% 0
1995 $ 441,760 92% $ 165,488 $ 0 37% 0 47% 0
</TABLE>
% of % of
% of % of Transactions Transactions
Fiscal % Paid to Commissions Commissions Effected Effected
Period Ended Firms Providing Paid Paid through through
February 28 Total Research To FBSI To FBS To FBSI To FBS FBSI FBS
PAPER AND
FOREST
PRODUCTS
1997 $ 104,451 72% $ 22,646 $ 1,146 22% 1% 36% 1%
1996 $ 175,147 92% $ 40,660 $ 1,839 23% 1% 48% 1%
1995 $ 317,019 90% $ 71,722 $ 0 23% 0 46% 0
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
PRECIOUS
METALS AND
MINERALS
1997 $ 655,032 95% $ 43,075 $ 0 7% 0 12% 0
1996 $ 668,532 90% $ 179,259 $ 0 27% 0 33% 0
1995 $ 466,587 91% $ 40,501 $ 0 9% 0 17% 0
REGIONAL
BANKS
1997 $ 385,163 89% $ 86,165 $ 0 22% 0 32% 0
1996 $ 346,066 88% $ 101,949 $ 0 29% 0 35% 0
1995 $ 243,598 93% $ 83,609 $ 0 34% 0 44% 0
RETAILING
1997 $ 1,026,572 86% $ 250,241 $ 0 24% 0 32% 0
1996 $ 144,844 90% $ 55,131 $ 0 38% 0 50% 0
1995 $ 519,888 97% $ 163,684 $ 0 31% 0 45% 0
SOFTWARE AND
COMPUTER
SERVICES
1997 $ 559,248 90% $ 86,634 $ 0 15% 0 24% 0
1996 $ 317,440 97% $ 42,554 $ 0 13% 0 23% 0
1995 $ 304,193 99% $ 49,029 $ 0 16% 0 29% 0
TECHNOLOGY
1997 $1,737,289 88% $ 339,229 $ 574 20% 0 27% 0
1996 $ 407,855 91% $ 55,981 $ 586 14% 0 26% 0
1995 $ 235,440 97% $ 110,367 $ 0 47% 0 58% 0
TELECOMMUNIC
ATIONS
1997 $1,288,951 74% $ 103,768 $ 58,688 8% 5% 12% 3%
1996 $ 476,696 94% $ 113,105 $ 1,744 24% 0 34% 0
1995 $ 745,067 95% $ 164,640 $ 0 22% 0 37% 0
TRANSPORTATIO
N
1997 $ 23,737 77% $ 4,001 $ 44 17% 0 23% 0
1996 $ 34,585 84% $ 7,224 $ 127 21% 0 43% 0
1995 $ 56,044 96% $ 13,666 $ 201 24% 0 46% 0
UTILITIES
GROWTH
1997 $ 167,248 79% $ 23,690 $ 2,643 14% 2% 17% 1%
1996 $ 334,639 92% $ 100,887 $ 6,273 30% 2% 44% 1%
1995 $ 143,954 98% $ 47,308 $ 0 33% 0 47% 0
</TABLE>
From time to time the Trustees will review whether the recapture for the
benefit of the funds of some portion of the brokerage commissions or
similar fees paid by the funds on portfolio transactions is legally
permissible and advisable. Each fund seeks to recapture soliciting
broker-dealer fees on the tender of portfolio securities, but at present no
other recapture arrangements are in effect. The Trustees intend to continue
to review whether recapture opportunities are available and are legally
permissible and, if so, to determine in the exercise of their business
judgment whether it would be advisable for each fund to seek such
recapture.
Although the Trustees and officers of each fund are substantially the same
as those of other funds managed by FMR, investment decisions for each fund
are made independently from those of other funds managed by FMR or accounts
managed by FMR affiliates. It sometimes happens that the same security is
held in the portfolio of more than one of these funds or accounts.
Simultaneous transactions are inevitable when several funds and accounts
are managed by the same investment adviser, particularly when the same
security is suitable for the investment objective of more than one fund or
account.
When two or more funds are simultaneously engaged in the purchase or sale
of the same security, the prices and amounts are allocated in accordance
with procedures believed to be appropriate and equitable for each fund. In
some cases this system could have a detrimental effect on the price or
value of the security as far as each fund is concerned. In other cases,
however, the ability of the funds to participate in volume transactions
will produce better executions and prices for the funds. It is the current
opinion of the Trustees that the desirability of retaining FMR as
investment adviser to each fund outweighs any disadvantages that may be
said to exist from exposure to simultaneous transactions.
VALUATION
Fidelity Service Company, Inc. (FSC) normally determines each stock fund's
net asset value (NAV) hourly during business hours observed by the New
York Stock Exchange (NYSE). Currently, the NYSE is open from 9:30
a.m. to 4:00 p.m. Eastern time, Monday through Friday. The Board has
approved the following "valuation times" for the determination of each
fund's net asset value: 10:00 a.m., 11:00 a.m., 12:00 noon, 1:00 p.m., 2:00
p.m., 3:00 p.m. and 4:00 p.m. FSC normally determines the money market's
NAV as of the close of the NYSE (normally 4:00 p.m. Eastern time). For all
funds the valuation of portfolio securities is determined as of these times
for the purpose of computing each fund's NAV . At each valuation time,
the value of each fund's assets will be determined in the manner described
below.
STOCK FUNDS. Portfolio securities are valued by various methods
depending on the primary market or exchange on which they trade. Most
equity securities for which the primary market is the United States are
valued at last sale price or, if no sale has occurred, at the closing bid
price. Most equity securities for which the primary market is outside the
United States are valued using the official closing price or the last sale
price in the principal market in which they are traded. If the last sale
price (on the local exchange) is unavailable, the last evaluated quote or
last bid price normally is used.
Fixed-income securities and other assets for which market quotations are
readily available may be valued at market values determined by such
securities' most recent bid prices (sales prices if the principal market is
an exchange) in the principal market in which they normally are traded, as
furnished by recognized dealers in such securities or assets. Fixed-income
securities and convertible securities may also be valued on the basis of
information furnished by a pricing service that uses a valuation matrix
which incorporates both dealer-supplied valuations and electronic data
processing techniques. Use of pricing services has been approved by the
Board of Trustees. A number of pricing services are available, and the fund
may use various pricing services or discontinue the use of any pricing
service.
Futures contracts and options are valued on the basis of market quotations,
if available.
Foreign securities are valued based on prices furnished by independent
brokers or quotation services which express the value of securities in
their local currency. FSC gathers all exchange rates daily at the close of
the NYSE using the last quoted price on the local currency and then
translates the value of foreign securities from their local currencies into
U.S. dollars. Any changes in the value of forward contracts due to exchange
rate fluctuations and days to maturity are included in the calculation of
NAV. If an extraordinary event that is expected to materially affect the
value of a portfolio security occurs after the close of an exchange on
which that security is traded, then that security will be valued as
determined in good faith by a committee appointed by the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less for
which market quotations are not readily available are valued either at
amortized cost or at original cost plus accrued interest, both of which
approximate current value. In addition, securities and other assets for
which there is no readily available market value may be valued in good
faith by a committee appointed by the Board of Trustees. The procedures set
forth above need not be used to determine the value of the securities owned
by a fund if, in the opinion of a committee appointed by the Board of
Trustees, some other method would more accurately reflect the fair market
value of such securities.
MONEY MARKET FUND. Portfolio securities and other assets are valued
on the basis of amortized cost. This technique involves initially valuing
an instrument at its cost as adjusted for amortization of premium or
accretion of discount rather than its current market value. The amortized
cost value of an instrument may be higher or lower than the price the fund
would receive if it sold the instrument.
Securities of other open-end investment companies are valued at their
respective NAVs.
During periods of declining interest rates, the fund's yield based on
amortized cost valuation may be higher than would result if the fund used
market valuations to determine its NAV. The converse would apply during
periods of rising interest rates.
Valuing the fund's investments on the basis of amortized cost and use of
the term "money market fund" are permitted pursuant to Rule 2a-7 under the
1940 Act. The fund must adhere to certain conditions under Rule 2a-7, as
summarized in the section entitled "Quality and Maturity" on page .
The Board of Trustees oversees FMR's adherence to the provisions of Rule
2a-7 and has established procedures designed to stabilize the money market
fund's NAV at $1.00. At such intervals as they deem appropriate, the
Trustees consider the extent to which NAV calculated by using market
valuations would deviate from $1.00 per share. If the Trustees believe that
a deviation from the fund's amortized cost per share may result in material
dilution or other unfair results to shareholders, the Trustees have agreed
to take such corrective action, if any, as they deem appropriate to
eliminate or reduce, to the extent reasonably practicable, the dilution or
unfair results. Such corrective action could include selling portfolio
instruments prior to maturity to realize capital gains or losses or to
shorten average portfolio maturity; withholding dividends; redeeming shares
in kind; establishing NAV by using available market quotations; and such
other measures as the Trustees may deem appropriate.
PERFORMANCE
The funds may quote performance in various ways. All performance
information supplied by the funds in advertising is historical and is not
intended to indicate future returns. The stock funds' share prices, the
money market fund's yield, and each fund's total return fluctuate in
response to market conditions and other factors, and the value of the stock
funds' shares when redeemed may be more or less than their original cost.
YIELD CALCULATIONS. To compute the money market fund's yield for a period,
the net change in value of a hypothetical account containing one share
reflects the value of additional shares purchased with dividends from the
one original share and dividends declared on both the original share and
any additional shares. The net change is then divided by the value of the
account at the beginning of the period to obtain a base period return. This
base period return is annualized to obtain a current annualized yield. The
fund also may calculate an effective yield by compounding the base period
return over a one year period. In addition to the current yield, the fund
may quote yields in advertising based on any historical seven-day period.
Yields for the fund are calculated on the same basis as other money market
funds, as required by applicable regulations.
Yield information may be useful in reviewing the fund's performance and in
providing a basis for comparison with other investment alternatives.
However, the fund's yield fluctuates, unlike investments that pay a fixed
interest rate over a stated period of time. When comparing investment
alternatives, investors should also note the quality and maturity of the
portfolio securities of respective investment companies they have chosen to
consider.
Investors should recognize that in periods of declining interest rates the
fund's yield will tend to be somewhat higher than prevailing market rates,
and in periods of rising interest rates the fund's yield will tend to be
somewhat lower. Also, when interest rates are falling, the inflow of net
new money to a fund from the continuous sale of its shares will likely be
invested in instruments producing lower yields than the balance of the
fund's holdings, thereby reducing the fund's current yield. In periods of
rising interest rates, the opposite can be expected to occur.
TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all
aspects of a fund's return, including the effect of reinvesting dividends
and capital gain distributions, and any change in the fund's NAV over a
stated period. Average annual total returns are calculated by determining
the growth or decline in value of a hypothetical historical investment in a
fund over a stated period, and then calculating the annually compounded
percentage rate that would have produced the same result if the rate of
growth or decline in value had been constant over the period. For example,
a cumulative total return of 100% over ten years would produce an average
annual total return of 7.18%, which is the steady annual rate of return
that would equal 100% growth on a compounded basis in ten years. Average
annual total returns covering periods of less than one year are calculated
by determining a fund's total return for the period, extending that return
for a full year (assuming that return remains constant over the year), and
quoting the result as an annual return. While average annual total
returns are a convenient means of comparing investment alternatives,
investors should realize that a fund's performance is not constant over
time, but changes from year to year, and that average annual total returns
represent averaged figures as opposed to the actual year-to-year
performance of the fund.
In addition to average annual total returns, a fund may quote unaveraged or
cumulative total returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative total
returns may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a series of
redemptions, over any time period. Total returns may be broken down into
their components of income and capital (including capital gains and changes
in share price) in order to illustrate the relationship of these factors
and their contributions to total return. Total returns may be quoted on a
before-tax or after-tax basis and may be quoted with or without taking each
fund's 3% maximum sales charge into account and may or may not include the
effect of a fund's redemption fees. Excluding a fund's sales charge and/or
redemption fee from a total return calculation produces a higher total
return figure. Total returns, yields, and other performance information may
be quoted numerically or in a table, graph, or similar illustration.
NET ASSET VALUE. Charts and graphs using a fund's net asset values,
adjusted net asset values, and benchmark indices may be used to exhibit
performance. An adjusted NAV includes any distributions paid by a fund and
reflects all elements of its return. Unless otherwise indicated, a fund's
adjusted NAVs are not adjusted for sales charges, if any.
MOVING AVERAGES. A stock fund may illustrate performance using moving
averages. A long-term moving average is the average of each week's adjusted
closing NAV for a specified period. A short-term moving average is the
average of each day's adjusted closing NAV for a specified period. Moving
Average Activity Indicators combine adjusted closing NAVs from the last
business day of each week with moving averages for a specified period to
produce indicators showing when an NAV has crossed, stayed above, or stayed
below its moving average. On February 28, 1997, the 13-week and 39-week
short-term moving averages were as follows:
13-WEEK SHORT-TERM 39-WEEK SHORT-TERM
FUND NAME MOVING AVERAGE MOVING AVERAGE
Air $ 19.00 $ 18.50
Transportation
American Gold $ 25.72 $ 26.97
Automotive $ 24.74 $ 23.75
Biotechnology $ 33.08 $ 31.33
Brokerage and $ 24.16 $ 21.16
Investment
Management
Chemicals $ 41.99 $ 40.21
Computers $ 51.26 $ 43.89
Construction and $ 21.37 $ 20.69
Housing
Consumer $ 20.06 $ 19.43
Industries
Defense and $ 29.00 $ 27.70
Aerospace
Developing $ 21.42 $ 20.87
Communications
Electronics $ 38.82 $ 32.79
Energy $ 23.15 $ 21.70
Energy Service $ 21.94 $ 19.70
Environmental $ 14.24 $ 13.79
Services
Financial $ 79.66 $ 71.16
Services
Food and $ 42.58 $ 40.33
Agriculture
Health Care $ 98.25 $ 91.64
Home Finance $ 42.56 $ 37.57
Industrial $ 25.37 $ 23.42
Equipment
Industrial $ 27.22 $ 26.21
Materials
Insurance $ 31.34 $ 28.48
Leisure $ 47.00 $ 46.31
Medical Delivery $ 26.97 $ 25.64
Multimedia $ 25.40 $ 25.59
Natural Gas $ 14.38 $ 13.61
Paper and Forest $ 21.63 $ 20.85
Products
Precious Metals $ 17.83 $ 19.03
and Minerals
Regional Banks $ 30.71 $ 27.21
Retailing $ 32.51 $ 32.50
Software and $ 40.79 $ 37.42
Computer
Services
Technology $ 58.87 $ 52.47
Telecommunicati $ 41.45 $ 40.53
ons
Transportation $ 22.42 $ 21.77
Utilities Growth $ 44.41 $ 41.69
HISTORICAL FUND RESULTS. The following table shows the funds'
(except Cylical Industries and Natural Resources) total returns for the
periods ended Februar y 28, 1997 . Total return figures include the
effect of the funds' 3% sales charge, but do not include the effects of
certain fees paid by the stock funds' shareholders upon
exchange or redemption and would have been lower had certain
expenses not been reduced during the periods shown.
AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
One FiveYears TenYears/Li One FiveYears Ten Years/
Year fe of Fund Year Life of Fund
Air -17.61% 7.15% 7.15% -17.61% 41.25% 99.40%
Transportation
American Gold 2.91% 15.63% 6.53% 2.91% 106.67% 88.24%
Automotive 16.98% 12.61% 11.63% 16.98% 81.08% 200.55%
Biotechnology 2.67% 5.61% 13.73% 2.67% 31.36% 261.95%
Brokerage and 39.94% 19.12% 10.01% 39.94% 139.85% 159.65%
Investment
Management
Chemicals 11.61% 14.37% 13.71% 11.61% 95.67% 261.25%
Computers 20.25% 25.25% 15.03% 20.25% 208.18% 305.68%
Construction 15.08% 12.49% 9.88% 15.08% 80.12% 156.47%
and Housing
Consumer 12.33% 12.37% 15.09%+ 12.33% 79.14% 155.53%+
Industries
Defense and 12.39% 18.13% 7.84% 12.39% 130.08% 112.67%
Aerospace
Developing -1.70% 15.14% 18.63%+ -1.70% 102.32% 212.84%+
Communicatio
ns
Electronics 30.63% 32.22% 17.38% 30.63% 304.02% 396.44%
Energy 16.74% 12.03% 8.71% 16.74% 76.46% 130.46%
Energy Service 28.29% 19.12% 8.55% 28.29% 139.80% 127.12%
Environmental 13.42% 3.37% 6.31%+ 13.42% 18.00% 59.92%+
Services
Financial 31.47% 24.07% 14.74% 31.47% 193.97% 295.48%
Services
Food and 10.18% 15.08% 16.33% 10.18% 101.87% 353.76%
Agriculture
Health Care 16.80% 14.27% 16.99% 16.80% 94.80% 380.39%
Home Finance 43.07% 32.29% 20.13% 43.07% 305.16% 525.72%
Industrial 14.70% 17.78% 9.87% 14.70% 126.65% 156.33%
Equipment
Industrial 9.31% 11.97% 8.59% 9.31% 76.00% 128.08%
Materials
Insurance 24.43% 17.24% 12.90% 24.43% 121.51% 236.44%
Leisure 6.83% 15.67% 12.45% 6.83% 107.08% 223.17%
Medical 7.19% 11.70% 17.31% 7.19% 73.89% 393.70%
Delivery
Multimedia -7.38% 15.68% 13.87% -7.38% 107.14% 266.57%
Natural Gas 9.07% n/a 6.29%+ 9.07% n/a 26.58%+
Paper and 7.55% 12.12% 7.03% 7.55% 77.21% 97.18%
Forest Products
Precious -9.07% 12.80% 5.04% -9.07% 82.64% 63.53%
Metals and
Minerals
Regional 39.03% 25.58% 20.32% 39.03% 212.36% 535.86%
Banks
Retailing 16.01% 9.91% 14.58% 16.01% 60.42% 290.04%
Software and 12.66% 20.51% 16.24% 12.66% 154.14% 350.50%
Computer
Services
Technology 9.26% 19.81% 13.27% 9.26% 146.84% 247.63%
Telecommunic 4.61% 15.68% 15.38% 4.61% 107.19% 318.09%
ations
Transportation 1.53% 13.80% 12.23% 1.53% 90.88% 217.16%
Utilities 14.59% 12.73% 11.63% 14.59% 82.09% 200.36%
Growth
Money Market 1.87% 3.51% 5.29% 1.87% 18.85% 67.41%
</TABLE>
+ Life of fund figures are from commencement of operations (June 29,
1990 for Consumer Industires and Developing Communications; June 29, 1989
for Environmental Services; and April 21, 1993 for Natural Gas) through the
fiscal periods ended February 28, 1997.
The following tables show the income and capital elements of each fund's
cumulative total return. The tables compare each fund's return to the
record of the S&P 500, the Dow Jones Industrial Average (DJIA), and
the cost of living, as measured by the Consumer Price Index (CPI), over the
same period. The CPI information is as of the month end closest to the
initial investment date for each fund. The S&P 500 and DJIA comparisons are
provided to show how each fund's total return compared to the record of a
broad unmanaged index of common stocks and a narrower set of stocks of
major industrial companies, respectively, over the same period. Because
the money market fund invests in short-term fixed-income securities, common
stocks represent a different type of investment from the fund. Common
stocks generally offer greater growth potential than the money market fund,
but generally experience greater price volatility, which means greater
potential for loss. In addition, common stocks generally provide lower
income than a fixed-income investment such as the money market fund. Each
stock fund has the ability to invest in securites not included in either
index, and its investment portfolio may or may not be similar in
composition to the indexes. The S&P 500 and DJIA returns are based on the
prices of unmanaged groups of stocks and, unlike the stock fund's returns,
do not include the effect of brokerage commissions or other costs of
investing.
The following tables show the growth in value of a hypothetical $10,000
investment in each fund during the past 10 fiscal years ended February 28,
1997 or life of each fund, as applicable, assuming all distributions were
reinvested. The figures below reflect the fluctuating interest rates and
stock prices of the specified periods and should not be considered
representative of the dividend income or capital gain or loss that could be
realized from an investment in a fund today. The figures in the table for
each stock fund do not include the effect of each stock fund's .75%
redemption fee applicable to shares held 29 days or less or, for shares
held at least 30 days, the effect of the fund's .75% redemption fee or
$7.50 fee, whichever is less or each stock fund's $7.50 exchange fee, if
applicable. Tax consequences of different investments (with the exception
of foreign tax withholdings) have not been factored into the figures below.
AIR TRANSPORTATION: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Air Transportation would
have grown to $19,940, including the effect of the fund's 3% maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT AIR TRANSPORTATION INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/2 8 /97 $ 13,997 $ 38 $ 5,905 $ 19,940 $ 37,674 $ 41,930 $ 14,301
2/2 9 /96 16,675 45 6,755 23,475 29,862 32,749 13,880
2/28/95 11,003 30 4,121 15,154 22,169 23,391 13,522
2/28/94 13,523 37 3,750 17,310 20,650 21,749 13,145
2/2 8 /93 10,743 29 2,758 13,530 19,060 18,604 12,823
2/2 9 /92 11,185 31 2,478 13,694 17,223 17,508 12,419
2/28/91 9,376 25 1,845 11,246 14,846 14,958 12,079
2/28/90 8,610 23 1,694 10,327 12,949 13,122 11,470
2/2 8 /89 8,515 23 1,200 9,738 10,890 10,864 10,896
2/2 9 / 88 6,596 18 929 7,543 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Air
Transportation on March 1, 1987, assuming the 3% maximum sales charge had
been in effect, the net amount invested in Air Transportation shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $14,124. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $16 for dividends
and $3,404 for capital gain distributions.
AMERICAN GOLD: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select American Gold would have
grown to $18,824, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT AMERICAN GOLD INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 18,194 $ 67 $ 563 $ 18,824 $ 37,674 $ 41,930 $ 14,301
2/29/96 17,485 64 193 17,742 29,862 32,749 13,880
2/28/95 11,893 43 132 12,068 22,169 23,391 13,522
2/28/94 14,614 54 162 14,830 20,650 21,749 13,145
2/28/93 9,126 34 101 9,261 19,060 18,604 12,823
2/29/92 8,707 32 96 8,835 17,223 17,508 12,419
2/28/91 8,778 32 97 8,907 14,846 14,958 12,079
2/28/90 11,454 42 127 11,623 12,949 13,122 11,470
2/28/89 10,087 37 112 10,236 10,890 10,864 10,896
2/29/88 9,216 34 102 9,352 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in American Gold
on March 1, 1987, assuming the 3% maximum sales charge had been in effect,
the net amount invested in American Gold shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $10,482. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $39 for dividends and $439 for capital gain
distributions.
AUTOMOTIVE: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Automotive would have
grown to $30,055, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT AUTOMOTIVE INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 20,397 $ 1,559 $ 8,099 $ 30,055 $ 37,674 $ 41,930 $ 14,301
2/29/96 17,560 1,166 6,196 24,922 29,862 32,749 13,880
2/28/95 15,944 1,059 5,626 22,629 22,169 23,391 13,522
2/28/94 20,477 1,289 4,122 25,888 20,650 21,749 13,145
2/28/93 16,627 1,000 2,218 19,845 19,060 18,604 12,823
2/29/92 13,791 778 1,531 16,100 17,223 17,508 12,419
2/28/91 9,917 560 507 10,984 14,846 14,958 12,079
2/28/90 9,459 390 483 10,332 12,949 13,122 11,470
2/28/89 9,708 43 496 10,247 10,890 10,864 10,896
2/29/88 8,687 39 444 9,170 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Automotive on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Automotive shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $16,623. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $772 for dividends and $4,653 for capital
gain distributions.
BIOTECHNOLOGY: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Biotechnology would have
grown to $36,195, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT BIOTECHNOLOGY INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 23,489 $ 115 $ 12,591 $ 36,195 $ 37,674 $ 41,930 $ 14,301
2/29/96 25,107 94 8,994 34,195 29,862 32,749 13,880
2/28/95 17,356 14 6,217 23,587 22,169 23,391 13,522
2/28/94 18,940 16 6,785 25,741 20,650 21,749 13,145
2/28/93 15,504 13 5,553 21,070 19,060 18,604 12,823
2/29/92 22,604 18 4,105 26,727 17,223 17,508 12,419
2/28/91 17,411 0 1,480 18,891 14,846 14,958 12,079
2/28/90 9,933 0 478 10,411 12,949 13,122 11,470
2/28/89 7,354 0 228 7,582 10,890 10,864 10,896
2/29/88 7,251 0 225 7,476 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Biotechnology
on March 1, 1987, assuming the 3% maximum sales charge had been in effect,
the net amount invested in Biotechnology shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $20,006. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $82 for dividends and $7,999 for capital gain
distributions.
BROKERAGE AND INVESTMENT MANAGEMENT: During the 10-year period ended
February 28, 1997, a hypothetical $10,000 investment in Fidelity Select
Brokerage and Investment Management would have grown to $25,965, including
the effect of the fund's 3% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT BROKERAGE AND INVESTMENT INDICES
MANAGEMENT
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 16,975 $ 1,135 $ 7,855 $ 25,965 $ 37,674 $ 41,930 $ 14,301
2/29/96 12,184 763 5,051 17,998 29,862 32,749 13,880
2/28/95 10,221 607 3,033 13,861 22,169 23,391 13,522
2/28/94 11,697 695 3,471 15,863 20,650 21,749 13,145
2/28/93 9,371 549 1,755 11,675 19,060 18,604 12,823
2/29/92 8,428 494 1,579 10,501 17,223 17,508 12,419
2/28/91 5,469 314 1,024 6,807 14,846 14,958 12,079
2/28/90 5,483 229 1,027 6,739 12,949 13,122 11,470
2/28/89 5,469 106 1,024 6,599 10,890 10,864 10,896
2/29/88 4,751 23 890 5,664 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Brokerage and
Investment Management on March 1, 1987, assuming the 3% maximum sales
charge had been in effect, the net amount invested in Brokerage and
Investment Management shares was $9,700. The cost of the initial investment
($10,000) together with the aggregate cost of reinvested dividends and
capital gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $14,321. If distributions had not
been reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $323 for dividends and $3,104 for capital gain distributions.
CHEMICALS: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Chemicals would have
grown to $36,125, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT CHEMICALS INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 21,265 $ 1,260 $ 13,600 $ 36,125 $ 37,674 $ 41,930 $ 14,301
2/29/96 19,765 1,080 10,551 31,396 29,862 32,749 13,880
2/28/95 16,955 868 6,805 24,628 22,169 23,391 13,522
2/28/94 15,830 655 5,926 22,411 20,650 21,749 13,145
2/28/93 14,310 442 3,375 18,127 19,060 18,604 12,823
2/29/92 15,945 291 1,672 17,908 17,223 17,508 12,419
2/28/91 12,920 144 988 14,052 14,846 14,958 12,079
2/28/90 11,285 76 567 11,928 12,949 13,122 11,470
2/28/89 11,430 0 26 11,456 10,890 10,864 10,896
2/29/88 9,720 0 22 9,742 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Chemicals on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Chemicals shares was $9,700. The cost of the initial
investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $21,062. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $700 for dividends and $7,725 for capital
gain distributions.
COMPUTERS: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Computers would have
grown to $40,568, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT COMPUTERS INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 29,070 $ 796 $ 10,702 $ 40,568 $ 37,674 $ 41,930 $ 14,301
2/29/96 24,720 677 7,327 32,724 29,862 32,749 13,880
2/28/95 18,478 506 2,433 21,417 22,169 23,391 13,522
2/28/94 16,279 446 2,143 18,868 20,650 21,749 13,145
2/28/93 12,140 333 535 13,008 19,060 18,604 12,823
2/29/92 11,917 327 525 12,769 17,223 17,508 12,419
2/28/91 9,911 102 299 10,312 14,846 14,958 12,079
2/28/90 7,326 7 221 7,554 12,949 13,122 11,470
2/28/89 6,597 6 199 6,802 10,890 10,864 10,896
2/29/88 6,904 7 208 7,119 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Computers on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Computers shares was $9,700. The cost of the initial
investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $17,727. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $241 for dividends and $6,284 for capital
gain distributions.
CONSTRUCTION AND HOUSING: During the 10-year period ended February 28,
1997, a hypothetical $10,000 investment in Fidelity Select Construction and
Housing would have grown to $25,647, including the effect of the fund's 3%
maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT CONSTRUCTION AND HOUSING INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 15,353 $ 547 $ 9,747 $ 25,647 $ 37,674 $ 41,930 $ 14,301
2/29/96 13,650 466 7,502 21,618 29,862 32,749 13,880
2/28/95 11,717 335 5,700 17,752 22,169 23,391 13,522
2/28/94 13,831 397 6,071 20,299 20,650 21,749 13,145
2/28/93 10,984 315 4,628 15,927 19,060 18,604 12,823
2/29/92 9,533 273 4,006 13,812 17,223 17,508 12,419
2/28/91 7,886 225 2,480 10,591 14,846 14,958 12,079
2/28/90 7,934 95 1,444 9,473 12,949 13,122 11,470
2/28/89 8,521 45 338 8,904 10,890 10,864 10,896
2/29/88 7,334 0 114 7,448 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Construction
and Housing on March 1, 1987, assuming the 3% maximum sales charge had been
in effect, the net amount invested in Construction and Housing shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $16,493. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $272 for dividends
and $4,717 for capital gain distributions.
CONSUMER INDUSTRIES: During the period from June 29, 1990 (commencement of
operations) to February 28, 1997, a hypothetical $10,000 investment in
Fidelity Select Consumer Industries would have grown to $25,553, including
the effect of the fund's 3% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT CONSUMER INDUSTRIES INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 20,040 $ 152 $ 5,361 $ 25,553 $ 26,701 $ 28,811 $ 12,286
2/29/96 17,305 130 4,630 22,065 21,164 22,502 11,925
2/28/95 13,493 82 3,397 16,972 15,712 16,072 11,617
2/28/94 14,783 90 2,916 17,789 14,636 14,944 11,293
2/28/93 12,581 77 1,193 13,851 13,509 12,783 11,016
2/29/92 13,512 83 241 13,836 12,206 12,030 10,670
2/28/91* 10,505 65 0 10,570 10,522 10,278 10,377
</TABLE>
* From June 29, 1990 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Consumer
Industries on June 29, 1990, assuming the 3% maximum sales charge had been
in effect, the net amount invested in Consumer Industries shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $13,735. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $78 for dividends
and $3,298 for capital gain distributions.
DEFENSE AND AEROSPACE: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Defense and Aerospace
would have grown to $21,267, including the effect of the fund's 3% maximum
sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT DEFENSE AND AEROSPACE INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 16,416 $ 339 $ 4,512 $ 21,267 $ 37,674 $ 41,930 $ 14,301
2/29/96 15,299 315 2,740 18,354 29,862 32,749 13,880
2/28/95 11,141 229 1,082 12,452 22,169 23,391 13,522
2/28/94 10,857 224 877 11,958 20,650 21,749 13,145
2/28/93 8,554 125 377 9,056 19,060 18,604 12,823
2/29/92 8,469 124 373 8,966 17,223 17,508 12,419
2/28/91 7,346 75 323 7,744 14,846 14,958 12,079
2/28/90 6,631 0 292 6,923 12,949 13,122 11,470
2/28/89 6,665 0 294 6,959 10,890 10,864 10,896
2/29/88 6,960 0 307 7,267 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Defense and
Aerospace on March 1, 1987, assuming the 3% maximum sales charge had been
in effect, the net amount invested in Defense and Aerospace shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $13,627. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $159 for dividends
and $3,029 for capital gain distributions.
DEVELOPING COMMUNICATIONS: During the period from June 29, 1990
(commencement of operations) to February 28, 1997, a hypothetical $10,000
investment in Fidelity Select Developing Communications would have grown to
$31,284, including the effect of the fund's 3% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT DEVELOPING COMMUNICATIONS INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 19,090 $ 0 $ 12,194 $ 31,284 $ 26,701 $ 28,811 $ 12,886
2/29/96 18,837 0 12,034 30,871 21,164 22,502 11,925
2/28/95 19,788 0 5,549 25,337 15,712 16,072 11,617
2/28/94 19,061 0 3,238 22,299 14,636 14,944 11,293
2/28/93 15,947 0 1,174 17,121 13,509 12,783 11,016
2/29/92 13,997 0 1,002 14,999 12,206 12,030 10,670
2/28/91* 10,777 0 0 10,777 10,522 10,278 10,377
</TABLE>
* From June 29, 1990 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Developing
Communications on June 29, 1990, assuming the 3% maximum sales charge had
been in effect, the net amount invested in Developing Communications shares
was $9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $20,847. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $8,691 for capital
gain distributions.
ELECTRONICS: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Electronics would have
grown to $49,644, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT ELECTRONICS INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 34,565 $ 42 $ 15,037 $ 49,644 $ 37,674 $ 41,930 $ 14,301
2/29/96 25,666 31 11,166 36,863 29,862 32,749 13,880
2/28/95 18,034 22 3,284 21,340 22,169 23,391 13,522
2/28/94 16,094 20 2,930 19,044 20,650 21,749 13,145
2/28/93 13,006 16 0 13,022 19,060 18,604 12,823
2/29/92 11,904 15 0 11,919 17,223 17,508 12,419
2/28/91 9,245 11 0 9,256 14,846 14,958 12,079
2/28/90 7,878 0 0 7,878 12,949 13,122 11,470
2/28/89 6,230 0 0 6,230 10,890 10,864 10,896
2/29/88 6,949 0 0 6,949 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Electronics on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Electronics shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $18,187. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $9.00 for dividends and $7,286 for capital
gain distributions.
ENERGY: During the 10-year period ended February 28, 1997, a hypothetical
$10,000 investment in Fidelity Select Energy would have grown to $23,046,
including the effect of the fund's 3% maximum sales charge.
FIDELITY SELECT ENERGY INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 15,901 $ 1,715 $ 5,430 $ 23,046 $ 37,674 $ 41,930 $ 14,301
2/29/96 14,155 1,406 3,589 19,150 29,862 32,749 13,800
2/28/95 12,013 1,096 2,727 15,836 22,169 23,391 13,522
2/28/94 12,483 1,028 2,319 15,830 20,650 21,749 13,145
2/28/93 11,819 946 1,667 14,432 19,060 18,604 12,823
2/29/92 10,573 605 1,491 12,669 17,223 17,508 12,419
2/28/91 11,543 509 1,610 13,662 14,846 14,958 12,079
2/28/90 12,841 438 503 13,782 12,949 13,122 11,470
2/28/89 9,827 292 251 10,370 10,890 10,864 10,896
2/29/88 8,827 26 225 9,078 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Energy on March
1, 1987, assuming the 3% maximum sales charge had been in effect, the net
amount invested in Energy shares was $9,700. The cost of the initial
investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $15,471. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $1,030 for dividends and $3,499 for capital
gain distributions.
ENERGY SERVICE: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Energy Service would
have grown to $22,712, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT ENERGY SERVICE INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 20,006 $ 227 $ 2,479 $ 22,712 $ 37,674 $ 41,930 $ 14,301
2/29/96 15,733 170 1,270 17,173 29,862 32,749 13,880
2/28/95 11,705 92 544 12,341 22,169 23,391 13,522
2/28/94 11,401 69 0 11,470 20,650 21,749 13,145
2/28/93 10,766 18 0 10,784 19,060 18,604 12,823
2/29/92 9,172 15 0 9,187 17,223 17,508 12,419
2/28/91 13,201 22 0 13,223 14,846 14,958 12,079
2/28/90 12,008 0 0 12,008 12,949 13,122 11,470
2/28/89 7,891 0 0 7,891 10,890 10,864 10,896
2/29/88 8,351 0 0 8,351 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Energy Service
on March 1, 1987, assuming the 3% maximum sales charge had been in effect,
the net amount invested in Energy Service shares was $9,700. The cost of
the initial investment ($10,000) together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested) amounted to $11,949. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $137 for dividends and $1,701 for capital
gain distributions.
ENVIRONMENTAL SERVICES: During the period from June 29, 1989 (commencement
of operations) to February 28, 1997, a hypothetical $10,000 investment in
Fidelity Select Environmental Services would have grown to $15,992,
including the effect of the fund's 3% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT ENVIRONMENTAL SERVICES INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 14,065 $ 12 $ 1,915 $ 15,992 $ 30,323 $ 34,376 $ 12,861
2/29/96 12,047 11 1,619 13,677 24,035 26,849 12,482
2/28/95 9,962 9 757 10,728 17,843 19,177 12,160
2/28/94 11,572 10 880 12,462 16,621 17,831 11,821
2/28/93 11,019 10 838 11,867 15,341 15,252 11,531
2/29/92 12,649 11 486 13,146 13,862 14,354 11,168
2/28/91 12,600 11 0 12,611 11,949 12,263 10,862
2/28/90* 10,554 9 0 10,563 10,422 10,758 10,314
</TABLE>
* From June 29, 1989 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Environmental
Services on June 29, 1989, assuming the 3% maximum sales charge had been in
effect, the net amount invested in Environmental Services shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $11,512. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $10 for dividends
and $1,436 for capital gain distributions.
FINANCIAL SERVICES: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Financial Services would
have grown to $39,548, including the effect of the fund's 3% maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT FINANCIAL SERVICES INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 22,335 $ 3,339 $ 13,874 $ 39,548 $ 37,674 $ 41,930 $ 14,301
2/29/96 17,693 2,381 9,105 29,179 29,862 32,749 13,880
2/28/95 12,988 1,622 6,374 20,984 22,169 23,391 13,522
2/28/94 13,799 1,438 4,801 20,038 20,650 21,749 13,145
2/28/93 14,351 1,421 2,304 18,076 19,060 18,604 12,823
2/29/92 11,254 967 828 13,049 17,223 17,508 12,419
2/28/91 7,605 563 559 8,727 14,846 14,958 12,079
2/28/90 8,020 386 590 8,996 12,949 13,122 11,470
2/28/89 7,551 279 505 8,335 10,890 10,864 10,896
2/29/88 7,352 38 491 7,881 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Financial
Services on March 1, 1987, assuming the 3% maximum sales charge had been in
effect, the net amount invested in Financial Services shares was $9,700.
The cost of the initial investment ($10,000) together with the aggregate
cost of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted to
$19,674. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller, and
cash payments for the period would have amounted to $1,193 for dividends
and $5,933 for capital gain distributions.
FOOD AND AGRICULTURE: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Food and Agriculture
would have grown to $45,376, including the effect of the fund's 3% maximum
sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT FOOD AND AGRICULTURE INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 25,334 $ 1,384 $ 18,658 $ 45,376 $ 37,674 $ 41,930 $ 14,301
2/29/96 23,980 1,070 14,897 39,947 29,862 32,749 13,880
2/28/95 18,507 672 9,784 28,963 22,169 23,391 13,522
2/28/94 17,915 579 7,804 26,298 20,650 21,749 13,145
2/28/93 17,557 503 5,486 23,546 19,060 18,604 12,823
2/29/92 17,198 418 4,187 21,803 17,223 17,508 12,419
2/28/91 15,349 304 2,709 18,362 14,846 14,958 12,079
2/28/90 12,505 85 1,739 14,329 12,949 13,122 11,470
2/28/89 10,821 54 415 11,290 10,890 10,864 10,896
2/29/88 9,040 19 347 9,406 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Food and
Agriculture on March 1, 1987, assuming the 3% maximum sales charge had been
in effect, the net amount invested in Food and Agriculture shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $23,645. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $683 for dividends
and $9,199 for capital gain distributions.
HEALTH CARE: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Health Care would have
grown to $48,039, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT HEALTH CARE INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 22,972 $ 1,471 $ 23,596 $ 48,039 $ 37,674 $ 41,930 $ 14,301
2/29/96 22,528 1,165 16,203 39,896 29,862 32,749 13,880
2/28/95 17,070 703 10,788 28,561 22,169 23,391 13,522
2/28/94 14,196 385 7,181 21,762 20,650 21,749 13,145
2/28/93 11,788 299 5,963 18,050 19,060 18,604 12,823
2/29/92 17,826 388 5,707 23,921 17,223 17,508 12,419
2/28/91 14,664 231 2,484 17,379 14,846 14,958 12,079
2/28/90 9,951 115 497 10,563 12,949 13,122 11,470
2/28/89 8,036 68 242 8,346 10,890 10,864 10,896
2/29/88 7,846 0 236 8,082 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Health Care on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Health Care shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $28,206. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $682 for dividends and $11,516 for capital
gain distributions.
HOME FINANCE: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Home Finance would have
grown to $62,572, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT HOME FINANCE INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 27,425 $ 3,269 $ 31,878 $ 62,572 $ 37,674 $ 41,930 $ 14,301
2/29/96 19,853 1,997 20,572 42,422 29,862 32,749 13,880
2/28/95 14,261 1,257 14,098 29,616 22,169 23,391 13,522
2/28/94 14,923 1,157 10,261 26,341 20,650 21,749 13,145
2/28/93 13,223 1,016 7,783 22,022 19,060 18,604 12,823
2/29/92 9,134 694 5,153 14,981 17,223 17,508 12,419
2/28/91 5,974 335 3,370 9,679 14,846 14,958 12,079
2/28/90 5,473 150 3,088 8,711 12,949 13,122 11,470
2/28/89 6,141 130 3,006 9,277 10,890 10,864 10,896
2/29/88 5,169 0 2,530 7,699 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Home Finance on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Home Finance shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $23,040. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $656 for dividends and $7,250 for capital
gain distributions.
INDUSTRIAL EQUIPMENT: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Industrial Equipment
would have grown to $25,633, including the effect of the fund's 3% maximum
sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT INDUSTRIAL EQUIPMENT INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 18,746 $ 413 $ 6,474 $ 25,633 $ 37,674 $ 41,930 $ 14,301
2/29/96 18,452 370 2,856 21,678 29,862 32,749 13,880
2/28/95 14,726 261 852 15,839 22,169 23,391 13,522
2/28/94 15,145 267 738 16,150 20,650 21,749 13,145
2/28/93 11,052 188 290 11,530 19,060 18,604 12,823
2/29/92 10,516 178 276 10,970 17,223 17,508 12,419
2/28/91 8,686 60 228 8,974 14,846 14,958 12,079
2/28/90 8,679 0 227 8,906 12,949 13,122 11,470
2/28/89 7,466 0 196 7,662 10,890 10,864 10,896
2/29/88 7,400 0 194 7,594 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Industrial
Equipment on March 1, 1987, assuming the 3% maximum sales charge had been
in effect, the net amount invested in Industrial Equipment shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $15,879. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $220 for dividends
and $4,916 for capital gain distributions.
INDUSTRIAL MATERIALS: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Industrial Materials
would have grown to $22,808, including the effect of the fund's 3% maximum
sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT INDUSTRIAL MATERIALS INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 19,993 $ 1,513 $ 1,302 $ 22,808 $ 37,674 $ 41,930 $ 14,301
2/29/96 18,843 1,380 16 20,239 29,862 32,749 13,880
2/28/95 16,718 1,119 14 17,851 22,169 23,391 13,522
2/28/94 15,663 907 13 16,583 20,650 21,749 13,145
2/28/93 12,606 685 11 13,302 19,060 18,604 12,823
2/29/92 11,970 590 10 12,570 17,223 17,508 12,419
2/28/91 8,992 401 8 9,401 14,846 14,958 12,079
2/28/90 9,411 171 8 9,590 12,949 13,122 11,470
2/28/89 9,729 177 8 9,914 10,890 10,864 10,896
2/29/88 9,324 16 8 9,348 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Industrial
Materials on March 1, 1987, assuming the 3% maximum sales charge had been
in effect, the net amount invested in Industrial Materials shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $12,110. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $838 for dividends
and $1,142 for capital gain distributions.
INSURANCE: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Insurance would have
grown to $33,644, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT INSURANCE INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 24,377 $ 1,416 $ 7,851 $ 33,644 $ 37,674 $ 41,930 $ 14,301
2/29/96 20,005 1,132 5,090 26,227 29,862 32,749 13,880
2/28/95 15,925 841 3,485 20,251 22,169 23,391 13,522
2/28/94 14,505 765 3,175 18,445 20,650 21,749 13,145
2/28/93 16,127 842 1,709 18,678 19,060 18,604 12,823
2/29/92 14,027 706 0 14,733 17,223 17,508 12,419
2/28/91 11,792 401 0 12,193 14,846 14,958 12,079
2/28/90 10,604 361 0 10,965 12,949 13,122 11,470
2/28/89 8,945 213 0 9,158 10,890 10,864 10,896
2/29/88 7,630 117 0 7,747 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Insurance on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Insurance shares was $9,700. The cost of the initial
investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $15,800. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $583 for dividends and $4,364 for capital
gain distributions.
LEISURE: During the 10-year period ended February 28, 1997, a hypothetical
$10,000 investment in Fidelity Select Leisure would have grown to $32,317,
including the effect of the fund's 3% maximum sales charge.
FIDELITY SELECT LEISURE INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 18,477 $ 279 $ 13,561 $ 32,317 $ 37,674 $ 41,930 $ 14,301
2/29/96 17,835 269 11,238 29,342 29,862 32,749 13,880
2/28/95 15,726 237 7,030 22,993 22,169 23,391 13,522
2/28/94 17,499 264 5,479 23,242 20,650 21,749 13,145
2/28/93 13,818 209 2,921 16,948 19,060 18,604 12,823
2/29/92 12,342 187 2,609 15,138 17,223 17,508 12,419
2/28/91 9,974 151 2,108 12,233 14,846 14,958 12,079
2/28/90 9,932 27 2,099 12,058 12,949 13,122 11,470
2/29/89 9,955 0 1,314 11,269 10,890 10,864 10,896
2/29/88 8,313 0 934 9,247 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Leisure on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Leisure shares was $9,700. The cost of the initial
investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $20,434. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $116 for dividends and $7,649 for capital
gain distributions.
MEDICAL DELIVERY: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Medical Delivery would
have grown to $49,370, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT MEDICAL DELIVERY INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 29,731 $ 370 $ 19,269 $ 49,370 $ 37,674 $ 41,930 $ 14,301
2/29/96 30,477 379 13,823 44,679 29,862 32,749 13,880
2/28/95 24,360 303 8,642 33,305 22,169 23,391 13,522
2/28/94 21,313 169 6,359 27,841 20,650 21,749 13,145
2/28/93 15,196 121 4,534 19,851 19,060 18,604 12,823
2/29/92 23,015 183 4,342 27,540 17,223 17,508 12,419
2/28/91 17,687 140 2,018 19,845 14,846 14,958 12,079
2/28/90 11,108 89 907 12,104 12,949 13,122 11,470
2/28/89 9,185 30 539 9,754 10,890 10,864 10,896
2/29/88 7,535 24 443 8,002 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Medical
Delivery on March 1, 1987, assuming the 3% maximum sales charge had been in
effect, the net amount invested in Medical Delivery shares was $9,700. The
cost of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted to
$24,145. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller, and
cash payments for the period would have amounted to $147 for dividends and
$10,551 for capital gain distributions.
MONEY MARKET: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Money Market would have
grown to $16,741, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT MONEY MARKET INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 9,700 $ 7,041 $ 0 $ 16,741 $ 37,674 $ 41,930 $ 14,301
2/29/96 9,700 6,241 0 15,941 29,862 32,749 13,880
2/28/95 9,700 5,401 0 15,101 22,169 23,391 13,522
2/28/94 9,700 4,781 0 14,481 20,650 21,749 13,145
2/28/93 9,700 4,411 0 14,111 19,060 18,604 12,823
2/29/92 9,700 3,963 0 13,663 17,223 17,508 12,419
2/28/91 9,700 3,274 0 12,974 14,846 14,958 12,079
2/28/90 9,700 2,338 0 12,038 12,949 13,122 11,470
2/28/89 9,700 1,367 0 11,067 10,890 10,864 10,896
2/29/88 9,700 599 0 10,299 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Money Market on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Money Market shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $17,041. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $5,307 for dividends. The fund did not
distribute any capital gains during the period.
MULTIMEDIA: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Multimedia would have
grown to $36,657, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT MULTIMEDIA INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 19,676 $ 45 $ 16,936 $ 36,657 $ 37,674 $ 41,930 $ 14,301
2/29/96 21,470 49 16,874 38,393 29,862 32,749 13,880
2/28/95 17,654 18 11,419 29,091 22,169 23,391 13,522
2/28/94 18,855 19 7,729 26,603 20,650 21,749 13,145
2/28/93 14,424 14 5,287 19,725 19,060 18,604 12,823
2/29/92 12,717 13 4,436 17,166 17,223 17,508 12,419
2/28/91 9,637 10 3,361 13,008 14,846 14,958 12,079
2/28/90 9,755 10 3,403 13,168 12,949 13,122 11,470
2/28/89 11,454 11 1,664 13,129 10,890 10,864 10,896
2/29/88 9,313 9 727 10,049 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Multimedia on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Multimedia shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $22,649. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $24 for dividends and $9,044 for capital gain
distributions.
NATURAL GAS: During the period from April 21, 1993 (commencement of
operations) to February 28, 1997, a hypothetical $10,000 investment in
Fidelity Select Natural Gas would have grown to $12,658, including the
effect of the fund's 3% maximum sales charge.
FIDELITY SELECT NATURAL GAS INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 12,125 $ 97 $ 436 $ 12,658 $ 19,627 $ 21,973 $ 11,083
2/29/96 11,019 78 159 11,256 15,557 17,161 10,757
2/28/95 8,711 20 125 8,856 11,549 12,258 10,479
2/28/94* 9,196 0 132 9,328 10,758 11,397 10,188
</TABLE>
* From April 21, 1993 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Natural Gas on
April 21, 1993, assuming the 3% maximum sales charge had been in effect,
the net amount invested in Natural Gas shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $10,494. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $78 for dividends and $407 for capital gain
distributions.
PAPER AND FOREST PRODUCTS: During the 10-year period ended February 28,
1997, a hypothetical $10,000 investment in Fidelity Select Paper and Forest
Products would have grown to $19,718, including the effect of the fund's 3%
maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT PAPER AND FOREST PRODUCTS INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 13,398 $ 1,143 $ 5,177 $ 19,718 $ 37,674 $ 41,930 $ 14,301
2/29/96 12,871 1,010 3,903 17,784 29,862 32,749 13,880
2/28/95 13,094 966 2,229 16,289 22,169 23,391 13,522
2/28/94 12,147 896 1,133 14,176 20,650 21,749 13,145
2/28/93 9,960 728 929 11,617 19,060 18,604 12,823
2/29/92 9,310 615 868 10,793 17,223 17,508 12,419
2/28/91 7,315 285 682 8,282 14,846 14,958 12,079
2/28/90 7,086 142 661 7,889 12,949 13,122 11,470
2/28/89 7,365 47 687 8,099 10,890 10,864 10,896
2/29/88 7,408 27 691 8,126 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Paper and
Forest Products on March 1, 1987, assuming the 3% maximum sales charge had
been in effect, the net amount invested in Paper and Forest Products shares
was $9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $15,047. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $601 for dividends
and $3,549 for capital gain distributions.
PRECIOUS METALS AND MINERALS: During the 10-year period ended February 28,
1997, a hypothetical $10,000 investment in Fidelity Select Precious Metals
and Minerals would have grown to $16,353, including the effect of the
fund's 3% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT PRECIOUS METALS AND MINERALS INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 14,220 $ 2,019 $ 114 $ 16,353 $ 37,674 $ 41,930 $ 14,301
2/29/96 15,207 2,116 122 17,445 29,862 32,749 13,880
2/28/95 11,078 1,498 89 12,665 22,169 23,391 13,522
2/28/94 12,058 1,442 97 13,597 20,650 21,749 13,145
2/28/93 7,153 761 57 7,971 19,060 18,604 12,823
2/29/92 7,944 677 64 8,685 17,223 17,508 12,419
2/28/91 7,923 596 64 8,583 14,846 14,958 12,079
2/28/90 10,338 625 83 11,046 12,949 13,122 11,470
2/28/89 8,626 410 69 9,105 10,890 10,864 10,896
2/29/88 9,069 42 73 9,184 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Precious Metals
and Minerals on March 1, 1987, assuming the 3% maximum sales charge had
been in effect, the net amount invested in Precious Metals and Minerals
shares was $9,700. The cost of the initial investment ($10,000) together
with the aggregate cost of reinvested dividends and capital gain
distributions for the period covered (their cash value at the time they
were reinvested) amounted to $11,393. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $1,219 for dividends and $87 for capital gain distributions.
REGIONAL BANKS: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Regional Banks would
have grown to $63,586, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT REGIONAL BANKS INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 32,552 $ 5,158 $ 25,876 $ 63,586 $ 37,674 $ 41,930 $ 14,301
2/29/96 24,171 3,371 16,822 44,364 29,862 32,749 13,880
2/28/95 17,863 2,154 11,460 31,477 22,169 23,391 13,522
2/28/94 17,843 1,685 9,675 29,203 20,650 21,749 13,145
2/28/93 20,709 1,722 4,999 27,430 19,060 18,604 12,823
2/29/92 15,661 1,182 2,903 19,746 17,223 17,508 12,419
2/28/91 10,027 615 1,355 11,997 14,846 14,958 12,079
2/28/90 10,533 428 1,424 12,385 12,949 13,122 11,470
2/28/89 10,117 302 723 11,142 10,890 10,864 10,896
2/29/88 8,768 71 179 9,018 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Regional Banks
on March 1, 1987, assuming the 3% maximum sales charge had been in effect,
the net amount invested in Regional Banks shares was $9,700. The cost of
the initial investment ($10,000) together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested) amounted to $26,107. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $1,696 for dividends and $9,581 for capital
gain distributions.
RETAILING: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Retailing would have
grown to $39,004, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT RETAILING INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 23,838 $ 1,000 $ 14,166 $ 39,004 $ 37,674 $ 41,930 $ 14,301
2/29/96 19,981 838 11,795 32,614 29,862 32,749 13,880
2/28/95 17,142 719 10,119 27,980 22,169 23,391 13,522
2/28/94 17,859 749 10,542 29,150 20,650 21,749 13,145
2/28/93 17,113 718 7,383 25,214 19,060 18,604 12,823
2/29/92 16,876 708 6,001 23,585 17,223 17,508 12,419
2/28/91 11,155 468 3,578 15,201 14,846 14,958 12,079
2/28/90 9,370 393 2,975 12,738 12,949 13,122 11,470
2/28/89 9,456 266 950 10,672 10,890 10,864 10,896
2/29/88 7,944 202 670 8,816 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Retailing on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Retailing shares was $9,700. The cost of the initial
investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $17,768. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $301 for dividends and $5,678 for capital
gain distributions.
SOFTWARE AND COMPUTER SERVICES: During the 10-year period ended February
28, 1997, a hypothetical $10,000 investment in Fidelity Select Software and
Computer Services would have grown to $45,050, including the effect of the
fund's 3% maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT SOFTWARE AND COMPUTER SERVICES INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 22,748 $ 0 $ 22,302 $ 45,050 $ 37,674 $ 41,930 $ 14,301
2/29/96 20,926 0 17,861 38,787 29,862 32,749 13,880
2/28/95 16,804 0 10,867 27,671 22,169 23,391 13,522
2/28/94 16,700 0 10,435 27,135 20,650 21,749 13,145
2/28/93 15,966 0 4,407 20,373 19,060 18,604 12,823
2/29/92 13,475 0 3,719 17,194 17,223 17,508 12,419
2/28/91 10,897 0 1,238 12,135 14,846 14,958 12,079
2/28/90 8,688 0 988 9,676 12,949 13,122 11,470
2/28/89 8,509 0 449 8,958 10,890 10,864 10,896
2/29/88 7,989 0 422 8,411 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Software and
Computer Services on March 1, 1987, assuming the 3% maximum sales charge
had been in effect, the net amount invested in Software and Computer
Services shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital gain
distributions for the period covered (their cash value at the time they
were reinvested) amounted to $25,991. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $10,845 for capital gain distributions.
TECHNOLOGY: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Technology would have
grown to $34,763, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT TECHNOLOGY INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 20,907 $ 228 $ 13,628 $ 34,763 $ 37,674 $ 41,930 $ 14,301
2/29/96 19,809 216 10,836 30,861 29,862 32,749 13,880
2/28/95 15,237 165 5,075 20,477 22,169 23,391 13,522
2/28/94 15,157 165 4,253 19,575 20,650 21,749 13,145
2/28/93 12,544 76 1,814 14,434 19,060 18,604 12,823
2/29/92 12,957 79 625 13,661 17,223 17,508 12,419
2/28/91 9,548 0 460 10,008 14,846 14,958 12,079
2/28/90 7,280 0 351 7,631 12,949 13,122 11,470
2/28/89 6,323 0 305 6,628 10,890 10,864 10,896
2/29/88 6,428 0 310 6,738 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Technology on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Technology shares was $9,700. The cost of the
initial investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $19,842. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $105 for dividends and $7,421 for capital
gain distributions.
TELECOMMUNICATIONS: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Telecommunications would
have grown to $41,809, including the effect of the fund's 3% maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FIDELITY SELECT TELECOMMUNICATIONS INDICES
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 25,200 $ 2,506 $ 14,103 $ 41,809 $ 37,674 $ 41,930 $ 14,301
2/29/96 27,050 2,419 9,297 38,766 29,862 32,749 13,880
2/28/95 23,114 1,787 5,916 30,817 22,169 23,391 13,522
2/28/94 22,366 1,310 4,864 28,540 20,650 21,749 13,145
2/28/93 20,612 1,074 1,727 23,413 19,060 18,604 12,823
2/29/92 17,597 802 1,175 19,574 17,223 17,508 12,419
2/28/91 14,342 489 958 15,789 14,846 14,958 12,079
2/28/90 14,517 188 970 15,675 12,949 13,122 11,470
2/28/89 12,256 100 339 12,695 10,890 10,864 10,896
2/29/88 9,604 14 249 9,867 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in
Telecommunications on March 1, 1987, assuming the 3% maximum sales charge
had been in effect, the net amount invested in Telecommunications shares
was $9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions for
the period covered (their cash value at the time they were reinvested)
amounted to $24,294. If distributions had not been reinvested, the amount
of distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $1,531 for
dividends and $9,477 for capital gain distributions.
TRANSPORTATION: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Transportation would
have grown to $31,716, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT TRANSPORTATION INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 18,352 $ 75 $ 13,289 $ 31,716 $ 37,674 $ 41,930 $ 14,301
2/29/96 18,096 73 12,131 30,300 29,862 32,749 13,880
2/28/95 16,948 70 9,808 26,826 22,169 23,391 13,522
2/28/94 17,889 74 7,368 25,331 20,650 21,749 13,145
2/28/93 15,421 63 4,388 19,872 19,060 18,604 12,823
2/29/92 12,771 53 3,294 16,118 17,223 17,508 12,419
2/28/91 9,312 0 2,402 11,714 14,846 14,958 12,079
2/28/90 10,187 0 2,116 12,303 12,949 13,122 11,470
2/28/89 10,534 0 176 10,710 10,890 10,864 10,896
2/29/88 7,884 0 132 8,016 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Transportation
on March 1, 1987, assuming the 3% maximum sales charge had been in effect,
the net amount invested in Transportation shares was $9,700. The cost of
the initial investment ($10,000) together with the aggregate cost of
reinvested dividends and capital gain distributions for the period covered
(their cash value at the time they were reinvested) amounted to $20,317. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $33 for dividends and $7,752 for capital gain
distributions.
UTILITIES GROWTH: During the 10-year period ended February 28, 1997, a
hypothetical $10,000 investment in Fidelity Select Utilities would have
grown to $30,036, including the effect of the fund's 3% maximum sales
charge.
FIDELITY SELECT UTILITIES GROWTH INDICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
Year Ended Value of Value of Value of Total S&P 500 DJIA Cost of
Initial Reinvested Reinvested Value Living**
$10,000 Dividend Capital Gain
Investment Distributions Distributions
2/28/97 $ 15,657 $ 6,153 $ 8,226 $ 30,036 $ 37,674 $ 41,930 $ 14,301
2/29/96 14,656 5,310 5,459 25,425 29,862 32,749 13,880
2/28/95 11,880 3,903 4,425 20,208 22,169 23,391 13,522
2/28/94 12,469 3,447 4,249 20,165 20,650 21,749 13,145
2/28/93 14,131 3,320 2,216 19,667 19,060 18,604 12,823
2/29/92 12,455 2,341 1,205 16,001 17,223 17,508 12,419
2/28/91 12,033 1,563 674 14,270 14,846 14,958 12,079
2/28/90 11,328 1,233 406 12,967 12,949 13,122 11,470
2/28/89 9,179 720 329 10,228 10,890 10,864 10,896
2/29/88 8,624 165 309 9,098 9,733 9,614 10,394
</TABLE>
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Utilities on
March 1, 1987, assuming the 3% maximum sales charge had been in effect, the
net amount invested in Utilities shares was $9,700. The cost of the initial
investment ($10,000) together with the aggregate cost of reinvested
dividends and capital gain distributions for the period covered (their cash
value at the time they were reinvested) amounted to $21,744. If
distributions had not been reinvested, the amount of distributions earned
from the fund over time would have been smaller, and cash payments for the
period would have amounted to $5,320 for dividends and $3,040 for capital
gain distributions.
PERFORMANCE COMPARISONS . A fund's performance may be compared to the
performance of other mutual funds in general, or to the performance of
particular types of mutual funds. These comparisons may be expressed as
mutual fund rankings prepared by Lipper Analytical Services, Inc. (Lipper),
an independent service located in Summit, New Jersey that monitors the
performance of mutual funds. Generally, Lipper rankings are based on total
return, assume reinvestment of distributions, do not take sales charges
or redemption fees into consideration, and are prepared without regard to
tax consequences. Lipper may also rank money market funds based on
yield. In addition to the mutual fund rankings, a fund's performance may be
compared to stock, bond, and money market mutual fund performance indices
prepared by Lipper or other organizations. When comparing these indices, it
is important to remember the risk and return characteristics of each type
of investment. For example, while stock mutual funds may offer higher
potential returns, they also carry the highest degree of share price
volatility. Likewise, money market funds may offer greater stability of
principal, but generally do not offer the higher potential returns
available from stock mutual funds.
From time to time, a fund's performance may also be compared to other
mutual funds tracked by financial or business publications and periodicals.
For example, the fund may quote Morningstar, Inc. in its advertising
materials. Morningstar, Inc. is a mutual fund rating service that rates
mutual funds on the basis of risk-adjusted performance. Rankings that
compare the performance of Fidelity funds to one another in appropriate
categories over specific periods of time may also be quoted in advertising.
A fund's performance may also be compared to that of a benchmark index
representing the universe of securities in which the fund may invest. The
total return of a benchmark index reflects reinvestment of all dividends
and capital gains paid by securities included in the index. Unlike a fund's
returns, however, the index returns do not reflect brokerage commissions,
transaction fees, or other costs of investing directly in the securities
included in the index.
Each stock fund may compare its performance to that of the Standard &
Poor's 500 Index, a widely recognized, unmanaged index of common
stocks.
A fund may be compared in advertising to Certificates of Deposit (CDs) or
other investments issued by banks or other depository institutions. Mutual
funds differ from bank investments in several respects. For example, a fund
may offer greater liquidity or higher potential returns than CDs, a fund
does not guarantee your principal or your return, and fund shares are not
FDIC insured.
Fidelity may provide information designed to help individuals understand
their investment goals and explore various financial strategies. Such
information may include information about current economic, market, and
political conditions; materials that describe general principles of
investing, such as asset allocation, diversification, risk tolerance, and
goal setting; questionnaires designed to help create a personal financial
profile; worksheets used to project savings needs based on assumed rates of
inflation and hypothetical rates of return; and action plans offering
investment alternatives. Materials may also include discussions of
Fidelity's asset allocation funds and other Fidelity funds, products, and
services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical
returns of the capital markets in the United States, including common
stocks, small capitalization stocks, long-term corporate bonds,
intermediate-term government bonds, long-term government bonds, Treasury
bills, the U.S. rate of inflation (based on the CPI), and combinations of
various capital markets. The performance of these capital markets is based
on the returns of different indices.
Fidelity funds may use the performance of these capital markets in order to
demonstrate general risk-versus-reward investment scenarios. Performance
comparisons may also include the value of a hypothetical investment in any
of these capital markets. The risks associated with the security types in
any capital market may or may not correspond directly to those of the
funds. Ibbotson calculates total returns in the same method as the funds.
The funds may also compare performance to that of other compilations or
indices that may be developed and made available in the future.
The money market fund may compare its performance or the performance of
securities in which it may invest to averages published by IBC Financial
Data, Inc. of Ashland, Massachusetts. These averages assume
reinvestment of distributions. The IBC 's MONEY FUND
REPORT (Trademark)/ ALL TAXABLE , which is reported in the
IBC'S MONEY FUND REPORT (Trademark) , covers over 823
taxable money market funds.
In advertising materials, Fidelity may reference or discuss its products
and services, which may include other Fidelity funds; retirement investing;
brokerage products and services; model portfolios or allocations; saving
for college or other goals; charitable giving; and the Fidelity credit
card. In addition, Fidelity may quote or reprint financial or business
publications and periodicals as they relate to current economic and
political conditions, fund management, portfolio composition, investment
philosophy, investment techniques, the desirability of owning a particular
mutual fund, and Fidelity services and products. Fidelity may also reprint,
and use as advertising and sales literature, articles from Fidelity
Focus(registered trademark), a quarterly magazine provided free of charge
to Fidelity fund shareholders.
A fund may present its fund number, Quotron(trademark) number, and CUSIP
number, and discuss or quote its current portfolio manager.
VOLATILITY. A stock fund may quote various measures of volatility and
benchmark correlation in advertising. In addition, the fund may compare
these measures to those of other funds. Measures of volatility seek to
compare the fund's historical share price fluctuations or total returns to
those of a benchmark. Measures of benchmark correlation indicate how valid
a comparative benchmark may be. All measures of volatility and correlation
are calculated using averages of historical data.
MOMENTUM INDICATORS indicate a stock fund's price movements over specific
periods of time. Each point on the momentum indicator represents the fund's
percentage change in price movements over that period.
A stock fund may advertise examples of the effects of periodic investment
plans, including the principle of dollar cost averaging. In such a program,
an investor invests a fixed dollar amount in a fund at periodic intervals,
thereby purchasing fewer shares when prices are high and more shares when
prices are low. While such a strategy does not assure a profit or guard
against loss in a declining market, the investor's average cost per share
can be lower than if fixed numbers of shares are purchased at the same
intervals. In evaluating such a plan, investors should consider their
ability to continue purchasing shares during periods of low price levels.
A fund may be available for purchase through retirement plans or other
programs offering deferral of, or exemption from, income taxes, which may
produce superior after-tax returns over time. For example, a $1,000
investment earning a taxable return of 10% annually would have an after-tax
value of $1,949 after ten years, assuming tax was deducted from the return
each year at a 31% rate. An equivalent tax-deferred investment would have
an after-tax value of $2,100 after ten years, assuming tax was deducted at
a 31% rate from the tax-deferred earnings at the end of the ten-year
period.
As of February 28, 1997, FMR advised over $ 28 billion in
tax-free fund assets, $ 96 billion in money market fund assets,
$ 317 billion in equity fund assets, $ 65 billion in
international fund assets, and $ 25 billion in Spartan fund assets.
The funds may reference the growth and variety of money market mutual funds
and the adviser's innovation and participation in the industry. The equity
funds under management figure represents the largest amount of equity fund
assets under management by a mutual fund investment adviser in the United
States, making FMR America's leading equity (stock) fund manager. FMR, its
subsidiaries, and affiliates maintain a worldwide information and
communications network for the purpose of researching and managing
investments abroad.
In addition to performance rankings, the money market fund may compare its
total expense ratio to the average total expense ratio of similar funds
tracked by Lipper. A fund's total expense ratio is a significant factor in
comparing bond and money market investments because of its effect on yield.
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
Pursuant to Rule 22d-1 under the Investment Company Act of 1940 (the 1940
Act), FDC exercises its right to waive each fund's front-end sales charge
on shares acquired through reinvestment of dividends and capital gain
distributions or in connection with the fund's merger with or acquisition
of any investment company or trust. In addition, FDC has chosen to waive
each fund's sales charge in certain instances because of efficiencies
involved in those sales of shares. The sales charge will not apply:
1. to shares purchased in connection with an employee benefit plan
(including the Fidelity-sponsored 403(b) and corporate IRA programs but
otherwise as defined in the Employee Retirement Income Security Act)
maintained by a U.S. employer and having more than 200 eligible employees,
or a minimum of $3,000,000 in plan assets invested in Fidelity mutual
funds, or as part of an employee benefit plan maintained by a U.S. employer
that is a member of a parent-subsidiary group of corporations (within the
meaning of Section 1563(a)(1) of the Internal Revenue Code, with "50%"
substituted for "80%") any member of which maintains an employee benefit
plan having more than 200 eligible employees, or a minimum of $3,000,000 in
plan assets invested in Fidelity mutual funds, or as part of an employee
benefit plan maintained by a non-U.S. employer having 200 or more eligible
employees, or a minimum of $3,000,000 in assets invested in Fidelity mutual
funds, the assets of which are held in a bona fide trust for the exclusive
benefit of employees participating therein;
2. to shares purchased by an insurance company separate account used to
fund annuity contracts purchased by employee benefit plans (including
403(b) programs, but otherwise as defined in the Employee Retirement Income
Security Act), which, in the aggregate, have either more than 200 eligible
employees or a minimum of $3,000,000 in assets invested in Fidelity funds;
3. to shares in a Fidelity account purchased (including purchases by
exchange) with the proceeds of a distribution from an employee benefit plan
provided that: (i) at the time of the distribution, the employer, or an
affiliate (as described in exemption 1 above) of such employer, maintained
at least one employee benefit plan that qualified for exemption 1 and that
had at least some portion of its assets invested in one or more mutual
funds advised by FMR, or in one or more accounts or pools advised by
Fidelity Management Trust Company; and (ii) either (a) the distribution
is transferred from the plan to a Fidelity IRA account within 60 days from
the date of the distribution or (b) the distribution is transferred
directly from the plan into another Fidelity account;
4. to shares purchased by a charitable organization (as defined for
purposes of Section 501(c)(3) of the Internal Revenue Code) investing
$100,000 or more;
5. to shares purchased for a charitable remainder trust or life income pool
established for the benefit of a charitable organization (as defined for
purposes of Section 501(c)(3) of the Internal Revenue Code);
6. to shares purchased by an investor participating in the Fidelity Trust
Portfolios program (these investors must make initial investments of
$100,000 or more in the Trust Portfolios funds and must, during the initial
six-month period, reach and maintain an aggregate balance of at least
$500,000 in all accounts and subaccounts purchased through the Trust
Portfolios program);
7. to shares purchased by a mutual fund for which FMR or an affiliate
serves as investment manager;
8. to shares purchased through Portfolio Advisory Services or Fidelity
Charitable Advisory Services;
9. to shares purchased by a current or former Trustee or officer of a
Fidelity fund or a current or retired officer, director, or regular
employee of FMR Corp. or Fidelity International Limited (FIL) or their
direct or indirect subsidiaries (a Fidelity Trustee or employee), the
spouse of a Fidelity Trustee or employee, a Fidelity Trustee or employee
acting as custodian for a minor child, or a person acting as trustee of a
trust for the sole benefit of the minor child of a Fidelity Trustee or
employee; or
10. to shares purchased by a bank trust officer, registered representative,
or other employee of a qualified recipient. Qualified recipients are
securities dealers or other entities, including banks and other financial
institutions, who have sold the fund's shares under special arrangements in
connection with FDC's sales activities.
Each fund's sales charge may be reduced to reflect sales charges previously
paid, or that would have been paid absent a reduction for some purchases
made directly with Fidelity as noted in the prospectus, in connection with
investments in other Fidelity funds. This includes reductions for
investments in the following prototype or prototype-like retirement plans
sponsored by FMR or FMR Corp.: The Fidelity IRA, The Fidelity Rollover IRA,
The Fidelity SEP-IRA and SARSEP, The Fidelity SIMPLE IRA , The
Fidelity Retirement Plan, Fidelity Defined Benefit Plan, The Fidelity Group
IRA, The Fidelity 403(b) Program, The Fidelity Investments 401(a) Prototype
Plan for Tax-Exempt Employers, and The CORPORATEplan for Retirement (Profit
Sharing and Money Purchase Plan).
On October 12, 1990, the funds changed their sales charge policy from a
2% sales charge upon purchase and a 1% deferred sales charge upon
redemption, to a 3% sales charge upon purchase. If you purchased your
shares prior to that date, when you redeem those shares a redemption fee
will be deducted and a deferred sales charge of 1% of this net redemption
amount will be deducted. Th e deferred sales charge does not apply to
exchanges between Select funds.
Each fund is open for business and its NAV is calculated each day the New
York Stock Exchange (NYSE) is open for trading. The NYSE has designated the
following holiday closings for 1997: New Year's Day, Presidents'
Day (observed) , Good Friday, Memorial Day (observed) ,
Independence Day, Labor Day, Thanksgiving Day, and Christmas Day. Although
FMR expects the same holiday schedule to be observed in the future, the
NYSE may modify its holiday schedule at any time. In addition, the funds
will not process wire purchases and redemptions on days when the Federal
Reserve Wire System is closed.
FSC normally determines each fund's NAV hourly, from 10:00 a.m. to 4:00
p.m., and the final determination of each fund's NAV will coincide with the
close of the NYSE (normally 4:00 p.m. Eastern time). However, NAV may be
calculated earlier if trading on the NYSE is restricted or as permitted by
the Securities and Exchange Commission (SEC). To the extent that portfolio
securities are traded in other markets on days when the NYSE is closed, a
fund's NAV may be affected on days when investors do not have access to the
fund to purchase or redeem shares. In addition, trading in some of a fund's
portfolio securities may not occur on days when the fund is open for
business.
If the Trustees determine that existing conditions make cash payments
undesirable, redemption payments may be made in whole or in part in
securities or other property, valued for this purpose as they are valued in
computing a fund's NAV. Shareholders receiving securities or other property
on redemption may realize a gain or loss for tax purposes, and will incur
any costs of sale, as well as the associated inconveniences.
Pursuant to Rule 11a-3 under the Investment Company Act of 1940 (the 1940
Act), each fund is required to give shareholders at least 60 days' notice
prior to terminating or modifying its exchange privilege. Under the Rule,
the 60-day notification requirement may be waived if (i) the only effect of
a modification would be to reduce or eliminate an administrative fee,
redemption fee, or deferred sales charge ordinarily payable at the time of
an exchange, or (ii) the fund suspends the redemption of the shares to be
exchanged as permitted under the 1940 Act or the rules and regulations
thereunder, or the fund to be acquired suspends the sale of its shares
because it is unable to invest amounts effectively in accordance with its
investment objective and policies.
In the Prospectus, each fund has notified shareholders that it reserves the
right at any time, without prior notice, to refuse exchange purchases by
any person or group if, in FMR's judgment, the fund would be unable to
invest effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
DISTRIBUTIONS AND TAXES
DISTRIBUTIONS. If you request to have distributions mailed to you and the
U.S. Postal Service cannot deliver your checks, or if your checks remain
uncashed for six months, Fidelity may reinvest your distributions at the
then-current NAV. All subsequent distributions will then be reinvested
until you provide Fidelity with alternate instructions.
DIVIDENDS. A portion of each stock fund's income may qualify for the
dividends-received deduction available to corporate shareholders to the
extent that each fund's income is derived from qualifying dividends.
Because each fund may earn other types of income, such as interest, income
from securities loans, non-qualifying dividends, and short-term capital
gains, the percentage of dividends from the fund that qualifies for the
deduction generally will be less than 100%. Each fund will notify corporate
shareholders annually of the percentage of fund dividends that qualifies
for the dividends-received deduction. A portion of each fund's dividends
derived from certain U.S. government obligations may be exempt from state
and local taxation. Gains (losses) attributable to foreign currency
fluctuations are generally taxable as ordinary income, and therefore will
increase (decrease) dividend distributions. Short-term capital gains are
distributed as dividend income. Each fund will send each shareholder a
notice in January describing the tax status of dividends and capital gain
distributions for the prior year.
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by each
fund on the sale of securities and distributed to shareholders are
federally taxable as long-term capital gains, regardless of the length of
time shareholders have held their shares. If a shareholder receives a
long-term capital gain distribution on shares of a fund, and such shares
are held six months or less and are sold at a loss, the portion of the loss
equal to the amount of the long-term capital gain distribution will be
considered a long-term loss for tax purposes. Short-term capital gains
distributed by each fund are taxable to shareholders as dividends, not as
capital gains. The money market fund may distribute any net realized
short-term capital gains once a year or more often as necessary, to
maintain its net asset value at $1.00 per share.
As of February 28, 1997, the following funds hereby designate a capital
gain dividend for the purpose of the dividend-paid deduction:
CAPITAL GAIN DIVIDEND
Fund Dollar Amount
American Gold $ 717,000
Automotive 1,457,000
Biotechnology 37,190,000
Brokerage and 532,000
Investment
Management
Chemicals 10,131,000
Computers 29,796,000
Construction 5,543,000
and Housing
Consumer 46,000
Industries
Defense and 674,000
Aerospace
Electronics 169,000
Energy 6,259,000
Energy Service 27,919,000
Financial 9,742,000
Services
Food and 18,228,000
Agriculture
Health Care 50,739,000
Home Finance 32,867,000
Industrial 6,195,000
Equipment
Industrial 2,739,000
Materials
Insurance 1,624,000
Leisure 3,267,000
Medical 11,872,000
Delivery
Multimedia 1,264,000
Natural Gas 4,048,000
Paper and 716,000
Forest Products
Regional 11,170,000
Banks
Retailing 2,146,000
Software and 12,796,000
Computer
Services
Technology 32,750,000
Telecommunic 8,694,000
ations
Transportation 436,000
Utilities 3,803,000
Growth
As of February 28, 1997, the funds had capital loss carryforwards available
to offset future capital gains, approximated as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Aggregate Capital Loss Amount that Expires on February 28, (or 29, if a leap year)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Fund Carryforward 1997 1998 1999 2000 2001 2002 2003 2004 2005
Air Trans. $4,508,000 $4,508,000
Develop
ing 1,633,000 1,633,000
Communications
Precious
Metals 1,376,000 1,376,000
and Minerals
Environ
mental 797,000 797,000
Services
</TABLE>
Subsequent to the reorganization of certain funds of the trust on October
26, 1990, the Industrial Equipment Portfolio acquired substantially
all of the assets of the Automation and Machinery Portfolio. The Automation
and Machinery Portfolio has a capital loss carryforward of
approximately $ 3 7,000, available to offset future realized capital
gains in the Industrial Equipment Portfolio, to the extent provided by
regulations.
To the extent that capital loss carryforwards are used to offset any future
capital gains, it is unlikely that the gains so offset will be distributed
to shareholders since any such distributions may be taxable to shareholders
as ordinary income.
FOREIGN TAXES. Foreign governments may withhold taxes on dividends and
interest paid with respect to foreign securities. Foreign governments may
also impose taxes on other payments or gains with respect to foreign
securities. If, at the close of its fiscal year, more than 50% of a fund's
total assets are invested in securities of foreign issuers, the fund may
elect to pass through foreign taxes paid and thereby allow shareholders to
take a credit or deduction on their individual tax returns.
TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a
"regulated investment company" for tax purposes so that it will not be
liable for federal tax on income and capital gains distributed to
shareholders. In order to qualify as a regulated investment company and
avoid being subject to federal income or excise taxes at the fund level,
each fund intends to distribute substantially all of its net investment
income and net realized capital gains within each calendar year as well as
on a fiscal year basis. Each fund intends to comply with other tax rules
applicable to regulated investment companies, including a requirement that
capital gains from the sale of securities held less than three months
constitute less than 30% of the fund's gross income for each fiscal year.
Gains from some forward currency contracts, futures contracts, and options
are included in this 30% calculation, which may limit a fund's investments
in such instruments.
If a fund purchases shares in certain foreign investment entities, defined
as passive foreign investment companies (PFICs) in the Internal Revenue
Code, it may be subject to U.S. federal income tax on a portion of any
excess distribution or gain from the disposition of such shares. Interest
charges may also be imposed on a fund with respect to deferred taxes
arising from such distributions or gains. Generally, each fund will elect
to mark-to-market any PFIC shares. Unrealized gains will be recognized as
income for tax purposes and must be distributed to shareholders as
dividends.
Each fund is treated as a separate entity from the other funds of Fidelity
Select Portfolios for tax purposes.
OTHER TAX INFORMATION. The information above is only a summary of some of
the tax consequences generally affecting each fund and its shareholders,
and no attempt has been made to discuss individual tax consequences. In
addition to federal income taxes, shareholders may be subject to state and
local taxes on fund distributions, and shares may be subject to state and
local personal property taxes. Investors should consult their tax advisers
to determine whether a fund is suitable to their particular tax situation.
FMR
All of the stock of FMR is owned by FMR Corp., its parent organized in
1972. The voting common stock of FMR Corp. is divided into two classes.
Class B is held predominantly by members of the Edward C. Johnson 3d family
and is entitled to 49% of the vote on any matter acted upon by the voting
common stock. Class A is held predominantly by non-Johnson family member
employees of FMR Corp. and its affiliates and is entitled to 51% of the
vote on any such matter. The Johnson family group and all other Class B
shareholders have entered into a shareholders' voting agreement under which
all Class B shares will be voted in accordance with the majority vote of
Class B shares. Under the 1940 Act, control of a company is presumed where
one individual or group of individuals owns more than 25% of the voting
stock of that company. Therefore, through their ownership of voting common
stock and the execution of the shareholders' voting agreement, members of
the Johnson family may be deemed, under the 1940 Act, to form a controlling
group with respect to FMR Corp.
At present, the principal operating activities of FMR Corp. are those
conducted by its division, Fidelity Investments Retail Marketing Company,
which provides marketing services to various companies within the Fidelity
organization.
Fidelity investment personnel may invest in securities for their own
account pursuant to a code of ethics that sets forth all employees'
fiduciary responsibilities regarding the funds, establishes procedures for
personal investing and restricts certain transactions. For example, all
personal trades in most securities require pre-clearance, and participation
in initial public offerings is prohibited. In addition, restrictions on the
timing of personal investing in relation to trades by Fidelity funds and on
short-term trading have been adopted.
TRUSTEES AND OFFICERS
The Trustees and executive officers of the trust are listed below. Except
as indicated, each individual has held the office shown or other offices in
the same company for the last five years. All persons named as Trustees
also serve in similar capacities for other funds advised by FMR. The
business address of each Trustee and officer who is an "interested person"
(as defined in the 1940 Act) is 82 Devonshire Street, Boston,
Massachusetts 02109, which is also the address of FMR. The business address
of all the other Trustees is Fidelity Investments, P.O. Box 9235, Boston,
Massachusetts 02205-9235. Those Trustees who are "interested persons" by
virtue of their affiliation with either the trust or FMR are indicated by
an asterisk (*).
*EDWARD C. JOHNSON 3d ( 66) , Trustee and President, is Chairman,
Chief Executive Officer and a Director of FMR Corp.; a Director and
Chairman of the Board and of the Executive Committee of FMR; Chairman and a
Director of FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and
Fidelity Management & Research (Far East) Inc.
*J. GARY BURKHEAD ( 55 ), Trustee and Senior Vice President, is
President of FMR; and President and a Director of FMR Texas Inc., Fidelity
Management & Research (U.K.) Inc., and Fidelity Management & Research (Far
East) Inc.
RALPH F. COX ( 64 ), Trustee (1991), is a management consultant
(1994). Prior to February 1994, he was President of Greenhill Petroleum
Corporation (petroleum exploration and production). Until March 1990, Mr.
Cox was President and Chief Operating Officer of Union Pacific Resources
Company (exploration and production). He is a Director of Sanifill
Corporation (non-hazardous waste, 1993), CH2M Hill Companies (engineering),
Rio Grande, Inc. (oil and gas production), and Daniel Industries (petroleum
measurement equipment manufacturer). In addition, he is a member of
advisory boards of Texas A&M University and the University of Texas at
Austin.
PHYLLIS BURKE DAVIS ( 65 ), Trustee (1992). Prior to her retirement in
September 1991, Mrs. Davis was the Senior Vice President of Corporate
Affairs of Avon Products, Inc. She is currently a Director of BellSouth
Corporation (telecommunications), Eaton Corporation (manufacturing, 1991),
and the TJX Companies, Inc. (retail stores), and previously served as a
Director of Hallmark Cards, Inc. (1985-1991) and Nabisco Brands, Inc. In
addition, she is a member of the President's Advisory Council of The
University of Vermont School of Business Administration.
ROBERT M. GATES (53), Trustee (1997), is a consultant, author, and
lecturer (1993). Mr. Gates was Director of the Central Intelligence Agency
(CIA) from 1991-1993. From 1989 to 1991, Mr. Gates served as Assistant to
the President of the United States and Deputy National Security Advisor.
Mr. Gates is currently a Trustee for the Forum For International Policy, a
Board Member for the Virginia Neurological Institute, and a Senior Advisor
of the Harvard Journal of World Affairs. In addition, Mr. Gates also serves
as a member of the corporate board for Lucas Varity PLC (automotive
components and diesel engines), Charles Stark Draper Laboratory
(non-profit), NACCO Industries, Inc. (mining and manufacturing), and TRW
Inc. (original equipment and replacement products).
E. BRADLEY JONES ( 69 ), Trustee. Prior to his retirement in 1984, Mr.
Jones was Chairman and Chief Executive Officer of LTV Steel Company. He is
a Director of TRW Inc. (original equipment and replacement products),
Cleveland-Cliffs Inc (mining), Consolidated Rail Corporation, Birmingham
Steel Corporation, and RPM, Inc. (manufacturer of chemical products), and
he previously served as a Director of NACCO Industries, Inc. (mining and
marketing, 1985-1995) and Hyster-Yale Materials Handling, Inc. (1985-1995).
In addition, he serves as a Trustee of First Union Real Estate Investments,
a Trustee and member of the Executive Committee of the Cleveland Clinic
Foundation, a Trustee and member of the Executive Committee of University
School (Cleveland), and a Trustee of Cleveland Clinic Florida.
DONALD J. KIRK ( 64 ), Trustee, is Executive-in-Residence (1995) at
Columbia University Graduate School of Business and a financial consultant.
From 1987 to January 1995, Mr. Kirk was a Professor at Columbia University
Graduate School of Business. Prior to 1987, he was Chairman of the
Financial Accounting Standards Board. Mr. Kirk is a Director of General Re
Corporation (reinsurance), and he previously served as a Director of
Valuation Research Corp. (appraisals and valuations, 1993-1995). In
addition, he serves as Chairman of the Board of Directors of the National
Arts Stabilization Fund, Chairman of the Board of Trustees of the Greenwich
Hospital Association, a Member of the Public Oversight Board of the
American Institute of Certified Public Accountants' SEC Practice Section
(1995), and as a Public Governor of the National Association of Securities
Dealers, Inc. (1996).
*PETER S. LYNCH ( 54 ), Trustee, is Vice Chairman and Director of FMR
(1992). Prior to May 31, 1990, he was a Director of FMR and Executive Vice
President of FMR (a position he held until March 31, 1991); Vice President
of Fidelity Magellan Fund and FMR Growth Group Leader; and Managing
Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity
Investments Corporate Services (1991-1992). He is a Director of W.R. Grace
& Co. (chemicals) and Morrison Knudsen Corporation (engineering and
construction). In addition, he serves as a Trustee of Boston College,
Massachusetts Eye & Ear Infirmary, Historic Deerfield (1989) and Society
for the Preservation of New England Antiquities, and as an Overseer of the
Museum of Fine Arts of Boston.
GERALD C. McDONOUGH ( 67 ), Trustee and Chairman of the non-interested
Trustees, is Chairman of G.M. Management Group (strategic advisory
services). Prior to his retirement in July 1988, he was Chairman and Chief
Executive Officer of Leaseway Transportation Corp. (physical distribution
services). Mr. McDonough is a Director of Brush-Wellman Inc. (metal
refining), York International Corp. (air conditioning and refrigeration),
Commercial Intertech Corp. (hydraulic systems, building systems, and
metal products, 1992), CUNO, Inc. (liquid and gas filtration products,
1996), and Associated Estates Realty Corporation (a real estate investment
trust, 1993). Mr. McDonough served as a Director of ACME-Cleveland Corp.
(metal working, telecommunications, and electronic products) from
1987-1996.
MARVIN L. MANN ( 63 ), Trustee (1993) is Chairman of the Board,
President, and Chief Executive Officer of Lexmark International, Inc.
(office machines, 1991). Prior to 1991, he held the positions of Vice
President of International Business Machines Corporation ("IBM") and
President and General Manager of various IBM divisions and subsidiaries.
Mr. Mann is a Director of M.A. Hanna Company (chemicals, 1993) and Infomart
(marketing services, 1991), a Trammell Crow Co. In addition, he serves as
the Campaign Vice Chairman of the Tri-State United Way (1993) and is a
member of the University of Alabama President's Cabinet.
WILLIAM O. McCOY (63), Trustee (1997), is the Vice President of Finance
for the University of North Carolina (16-school system, 1995). Prior to his
retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of
BellSouth Corporation (telecommunications, 1984) and President of BellSouth
Enterprises (1986). He is currently a Director of Liberty Corporation
(holding company, 1984), Weeks Corporation of Atlanta (real estate, 1994),
Carolina Power and Light Company (electric utility, 1996), and the Kenan
Transport Co. (1996). Previously, he was a Director of First American
Corporation (bank holding company, 1979- 1996). In addition, Mr. McCoy
serves as a member of the Board of Visitors for the University of North
Carolina at Chapel Hill (1994) and for the Kenan-Flager Business School
(University of North Carolina at Chapel Hill, 1988).
THOMAS R. WILLIAMS ( 68 ), Trustee, is President of The Wales Group,
Inc. (management and financial advisory services). Prior to retiring in
1987, Mr. Williams served as Chairman of the Board of First Wachovia
Corporation (bank holding company), and Chairman and Chief Executive
Officer of The First National Bank of Atlanta and First Atlanta Corporation
(bank holding company). He is currently a Director of BellSouth Corporation
(telecommunications), ConAgra, Inc. (agricultural products), Fisher
Business Systems, Inc. (computer software), Georgia Power Company (electric
utility), Gerber Alley & Associates, Inc. (computer software), National
Life Insurance Company of Vermont, American Software, Inc., and AppleSouth,
Inc. (restaurants, 1992).
WILLIAM J. HAYES ( 62 ), Vice President (1994), is Vice President of
Fidelity's equity funds; Senior Vice President of FMR; and Managing
Director of FMR Corp.
SARAH H. ZENOBLE (47), Vice President, is Vice President of Fidelity's
money market funds (1996) and Vice President of FMR Texas Inc.
ARTHUR S. LORING ( 49 ), Secretary, is Senior Vice President (1993)
and General Counsel of FMR, Vice President-Legal of FMR Corp., and Vice
President and Clerk of FDC.
KENNETH A. RATHGEBER ( 49 ), Treasurer (1995), is Treasurer of the
Fidelity funds and is an employee of FMR (1995). Before joining FMR, Mr.
Rathgeber was a Vice President of Goldman Sachs & Co. (1978-1995), where he
served in various positions, including Vice President of Proprietary
Accounting (1988-1992), Global Co-Controller (1992-1994), and Chief
Operations Officer of Goldman Sachs (Asia) LLC (1994-1995).
ROBERT H. MORRISON ( 56 ), Manager of Security Transactions of
Fidelity's equity funds is Vice President of FMR.
THOMAS D. MAHER ( 52 ), Assistant Vice President, is Assistant Vice
President of Fidelity's municipal bond funds (1996) and of Fidelity's
money market funds and Vice President and Associate General Counsel of
FMR Texas Inc.
JOHN H. COSTELLO ( 50 ), Assistant Treasurer, is an employee of FMR.
LEONARD M. RUSH ( 51 ), Assistant Treasurer (1994), is an employee of
FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity funds,
Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994) and Chief
Financial Officer of Fidelity Brokerage Services, Inc. (1990-1993).
THOMAS J. SIMPSON ( 38 ), Assistant Treasurer, is Assistant Treasurer
of Fidelity's municipal bond funds (1996) and of Fidelity's money
market funds (1996) and an employee of FMR (1996). Prior to joining
FMR, Mr. Simpson was Vice President and Fund Controller of Liberty
Investment Services (1987-1995).
The table on page sets forth information describing the
compensation of each Trustee of each fund for his or her services for the
fiscal year ended February 28, 1997 or calendar year ended December 31,
1996, as applicable.
COMPENSATION TABLE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
AGGREGATE J. Gary Ralph F. Phyllis Richard Edward E.
COMPENSATION Burkhead Cox Burke J. Flynn C. Bradley Donald
FROM A FUNDA ** Davis *** Johnson Jones J. Kirk
3d**
Air
Transport
ationC $0 $33 $36 $32 $0 $36 $ 35
American
GoldD $0 $151 $143 $148 $0 $143 $ 145
Auto
motiveE $0 $41 $40 $44 $ 0 $40 $ 40
Biotech
nologyF $0 $271 $251 $254 $0 $251 $254
Brokerage
and
$0 $19 $18 $14 $0 $18 $18
Investment
Management
ChemicalsG
$0 $45 $42 $44 $0 $42 $43
Computers
H $0 $194 $189 $171 $0 $189 $191
Construction
and $0 $25 $24 $22 $0 $24 $25
HousingI
Consumer $0 $9 $12 $14 $0 $12 $ 0
Industries
Cyclical $0 $9 $9 $0 $ 0 $9 $ 0
Industries+
Defense and
$0 $14 $14 $13 $ 0 $14 $14
Aerospace
Developing
$0 $112 $108 $110 $0 $108 $110
CommunicationsJ
Elec
tronicsK $0 $448 $432 $389 $0 $432 $436
EnergyL $0 $62 $59 $54 $0 $59 $60
Energy
ServiceM $0 $161 $152 $133 $0 $152 $153
Envi
ronmental $0 $15 $14 $15 $0 $14 $14
ServicesN
Financial $0 $96 $93 $89 $0 $93 $94
ServicesO
Food and $0 $101 $97 $6 $0 $97 $98
AgricultureP
Health
CareQ,B,GG $0 $462 $447 $442 $0 $447 $0
Home
FinanceR $0 $239 $234 $215 $0 $234 $236
Industrial
$0 $33 $32 $32 $0 $32 $32
EquipmentS
Industrial
$0 $35 $35 $37 $0 $35 $36
MaterialsT
Insurance $0 $12 $11 $11 $0 $11 $11
LeisureU $0 $37 $36 $36 $0 $36 $36
Medical
DeliveryV $0 $81 $76 $79 $0 $76 $76
Multi
mediaW $0 $31 $30 $31 $0 $30 $30
Natural
GasX $0 $39 $38 $34 $0 $38 $38
Natural $0 $9 $9 $0 $0 $9 $0
Resources+
Paper and
Forest $0 $11 $11 $13 $0 $11 $11
Products
Precious
Metals $0 $125 $117 $123 $0 $117 $119
and MineralsY
Regional
BanksZ $0 $140 $137 $127 $0 $137 $138
Retailing
AA $0 $76 $73 $79 $0 $73 $74
Software
and $0 $149 $145 $145 $0 $145 $147
Computer
ServicesBB
Tech
nologyCC $0 $166 $161 $153 $0 $161 $163
Tele
communi
catio $0 $172 $166 $169 $0 $166 $168
nsDD
Transpor
tation $0 $4 $4 $4 $0 $4 $4
Utilities
GrowthEE $0 $87 $85 $83 $0 $85 $86
Money
MarketFF $0 $271 $270 $265 $0 $270 $273
TOTAL $ 0 $ 137,700 $ 134,700 $ 168,000 $ 0 $ 134,700 $ 0
COMPENSATION
FROM THE FUND
COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
AGGREGATE William Gerald C. Edward H. Marvin L. Thomas R.
COMPENSATION PeterS. O.McCoy McDonough Malone Mann Williams
FROM A FUNDA Lynch** **** ***
Air TransportationC $ 0 $ 27 $ 38 $ 23 $ 33 $ 36
American GoldD $ 0 $ 117 $ 153 $ 122 $ 148 $ 146
AutomotiveE $ 0 $ 35 $ 43 $ 34 $ 40 $ 41
BiotechnologyF $ 0 $ 194 $ 267 $ 217 $ 266 $ 256
Brokerage and $ 0 $ 17 $ 20 $ 11 $ 19 $ 19
Investment
Management
ChemicalsG $ 0 $ 36 $ 45 $ 36 $ 43 $ 43
ComputersH $ 0 $ 158 $ 207 $ 137 $ 190 $ 193
Construction and $ 0 $ 21 $ 26 $ 17 $ 24 $ 25
HousingI
Consumer $ 0 $ 7 $ 13 $ 7 $ 9 $ 13
Industries
Cyclical $ 0 $ 9 $ 11 $ 0 $ 9 $ 9
Industries+
Defense and $ 0 $ 12 $ 15 $ 10 $ 14 $ 14
Aerospace
Developing $ 0 $ 88 $ 116 $ 88 $ 109 $ 111
CommunicationsJ
ElectronicsK $ 0 $ 369 $ 470 $ 313 $ 439 $ 442
EnergyL $ 0 $ 52 $ 65 $ 42 $ 60 $ 61
Energy ServiceM $ 0 $ 138 $ 165 $ 110 $ 157 $ 155
Environmental $ 0 $ 12 $ 15 $ 12 $ 14 $ 15
ServicesN
Financial $ 0 $ 80 $ 101 $ 69 $ 94 $ 95
ServicesO
Food and $ 0 $ 79 $ 104 $ 79 $ 99 $ 99
AgricultureP
Health CareQ,B,GG $ 0 $ 352 $ 478 $ 360 $ 453 $ 456
Home FinanceR $ 0 $ 194 $ 253 $ 172 $ 236 $ 238
Industrial $ 0 $ 25 $ 34 $ 26 $ 32 $ 32
EquipmentS
Industrial $ 0 $ 28 $ 38 28 $ 34 $ 36
MaterialsT
Insurance $ 0 $ 9 $ 12 9 $ 12 $ 11
LeisureU $ 0 $ 31 $ 39 $ 28 $ 36 $ 37
Medical DeliveryV $ 0 $ 60 $ 81 $ 66 $ 79 $ 77
MultimediaW $ 0 $ 24 $ 32 $ 25 $ 30 $ 31
Natural GasX $ 0 $ 34 $ 41 $ 27 $ 38 $ 39
Natural $ 0 $ 9 $ 11 $ 0 $ 9 $ 9
Resources+
Paper and Forest $ 0 $ 9 $ 12 $ 9 $ 11 $ 12
Products
Precious Metals $ 0 $ 92 $ 124 $ 103 $ 122 $ 120
and MineralsY
Regional BanksZ $ 0 $ 121 $ 140 $ 98 $ 137 $ 140
RetailingAA $ 0 $ 70 $ 79 $ 62 $ 73 $ 75
Software and $ 0 $ 123 $ 156 $ 113 $ 145 $ 149
Computer
ServicesBB
TechnologyCC $ 0 $ 133 $ 173 $ 124 $ 163 $ 164
Telecommunicatio $ 0 $ 136 $ 178 $ 135 $ 168 $ 170
nsDD
Transportation $ 0 $ 4 $ 5 $ 3 $ 4 $ 4
Utilities GrowthEE $ 0 $ 67 $ 91 $ 66 $ 85 $ 87
Money MarketFF $ 0 $ 224 $ 289 $ 208 $ 267 $ 275
TOTAL $ 0 $ 85,333 $ 136,200 $ 136,200 $ 134,700 $ 136,200
COMPENSATION
FROM THE FUND
COMPLEX*,A
</TABLE>
* Information is for the calendar year ended December 31, 1996 for
235 funds in the complex.
** Interested Trustees of the funds are compensated by FMR.
*** Richard J. Flynn and Edward H. Malone served on the Board of Trustees
through December 31, 1996.
**** During the period from May 1, 1996 through December 31, 1996, William
O. McCoy served as a Member of the Advisory Board of the trust. Mr. McCoy
was appointed to the Board of Trustees effective January 1, 1997.
+ Estimated
A Compensation figures include cash, and may include a pro rata portion of
benefits accrued under the retirement program for the period ended December
30, 1996 and required to be deferred, and may include amounts deferred at
the election of Trustees.
B Compensation figures include cash, and may include amounts required to be
deferred, a pro rata portion of benefits accrued under the retirement
program for the period ended December 30, 1996 and required to be deferred,
and amounts deferred at the election of Trustees.
C The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
D The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $6, Phyllis
Burke Davis, $6, Richard J. Flynn, $0, E. Bradley Jones, $6, Donald J.
Kirk, $6, William O. McCoy, $0, Gerald C. McDonough, $6, Edward H. Malone,
$6, Marvin L. Mann, $6, and Thomas R. Williams, $6.
E The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $2, Phyllis
Burke Davis, $2, Richard J. Flynn, $0, E. Bradley Jones, $2, Donald J.
Kirk, $2, William O. McCoy, $0, Gerald C. McDonough, $2, Edward H. Malone,
$2, Marvin L. Mann, $2, and Thomas R. Williams, $2.
F T he following amounts are required to be deferred by each
non-interested Trustee, most of which is subject to vesting: Ralph F. Cox,
$ 10 , Phyllis Burke Davis, $ 10 , Richard J. Flynn, $0, E.
Bradley Jones, $ 10 , Donald J. Kirk, $ 10 , William O. McCoy,
$ 0 , Gerald C. McDonough, $ 10 , Edward H. Malone, $ 10 ,
Marvin L. Mann, $ 10 , and Thomas R. Williams, $ 10 .
G The following amounts are required to be deferred by each
non-interested Trustee, most of which is subject to vesting: Ralph F. Cox,
$2, Phyllis Burke Davis, $2, Richard J. Flynn, $0, E. Bradley Jones, $2,
Donald J. Kirk, $2, William O. McCoy, $0, Gerald C. McDonough, $2, Edward
H. Malone, $2, Marvin L. Mann, $2, and Thomas R. Williams, $2.
H The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $6, Phyllis
Burke Davis, $6, Richard J. Flynn, $0, E. Bradley Jones, $6, Donald J.
Kirk, $6, William O. McCoy, $0, Gerald C. McDonough, $6, Edward H. Malone,
$6, Marvin L. Mann, $6, and Thomas R. Williams, $6.
I The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
J The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $4, Phyllis
Burke Davis, $4, Richard J. Flynn, $0, E. Bradley Jones, $4, Donald J.
Kirk, $4, William O. McCoy, $0, Gerald C. McDonough, $4, Edward H. Malone,
$4, Marvin L. Mann, $4, and Thomas R. Williams, $4.
K The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $14, Phyllis
Burke Davis, $14, Richard J. Flynn, $0, E. Bradley Jones, $14, Donald J.
Kirk, $14, William O. McCoy, $0, Gerald C. McDonough, $14, Edward H.
Malone, $14, Marvin L. Mann, $14, and Thomas R. Williams, $14.
L The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $2, Phyllis
Burke Davis, $2, Richard J. Flynn, $0, E. Bradley Jones, $2, Donald J.
Kirk, $2, William O. McCoy, $0, Gerald C. McDonough, $2, Edward H. Malone,
$2, Marvin L. Mann, $2, and Thomas R. Williams, $2.
M The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $5, Phyllis
Burke Davis, $5, Richard J. Flynn, $0, E. Bradley Jones, $5, Donald J.
Kirk, $5, William O. McCoy, $0, Gerald C. McDonough, $5, Edward H. Malone,
$5, Marvin L. Mann, $5, and Thomas R. Williams, $5.
N The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
O The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $3, Phyllis
Burke Davis, $3, Richard J. Flynn, $0, E. Bradley Jones, $3, Donald J.
Kirk, $3, William O. McCoy, $0, Gerald C. McDonough, $3, Edward H. Malone,
$3, Marvin L. Mann, $3, and Thomas R. Williams, $3.
P The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $4, Phyllis
Burke Davis, $4, Richard J. Flynn, $0, E. Bradley Jones, $4, Donald J.
Kirk, $4, William O. McCoy, $0, Gerald C. McDonough, $4, Edward H. Malone,
$4, Marvin L. Mann, $4, and Thomas R. Williams, $4.
Q The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $62, Phyllis
Burke Davis, $62, Richard J. Flynn, $0, E. Bradley Jones, $62, Donald J.
Kirk, $62, William O. McCoy, $45, Gerald C. McDonough, $69, Edward H.
Malone, $17, Marvin L. Mann, $62, and Thomas R. Williams, $62.
R The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $8, Phyllis
Burke Davis, $8, Richard J. Flynn, $0, E. Bradley Jones, $8, Donald J.
Kirk, $8, William O. McCoy, $0, Gerald C. McDonough, $8, Edward H. Malone,
$8, Marvin L. Mann, $8, and Thomas R. Williams, $8.
S The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
T The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
U The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
V The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $3, Phyllis
Burke Davis, $3, Richard J. Flynn, $0, E. Bradley Jones, $3, Donald J.
Kirk, $3, William O. McCoy, $0, Gerald C. McDonough, $3, Edward H. Malone,
$3, Marvin L. Mann, $3, and Thomas R. Williams, $3.
W The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
X The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $1, Phyllis
Burke Davis, $1, Richard J. Flynn, $0, E. Bradley Jones, $1, Donald J.
Kirk, $1, William O. McCoy, $0, Gerald C. McDonough, $1, Edward H. Malone,
$1, Marvin L. Mann, $1, and Thomas R. Williams, $1.
Y The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $5, Phyllis
Burke Davis, $5, Richard J. Flynn, $0, E. Bradley Jones, $5, Donald J.
Kirk, $5, William O. McCoy, $0, Gerald C. McDonough, $5, Edward H. Malone,
$5, Marvin L. Mann, $5, and Thomas R. Williams, $5.
Z The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $4, Phyllis
Burke Davis, $4, Richard J. Flynn, $0, E. Bradley Jones, $4, Donald J.
Kirk, $4, William O. McCoy, $0, Gerald C. McDonough, $4, Edward H. Malone,
$4, Marvin L. Mann, $4, and Thomas R. Williams, $4.
AA The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $3, Phyllis
Burke Davis, $3, Richard J. Flynn, $0, E. Bradley Jones, $3, Donald J.
Kirk, $3, William O. McCoy, $0, Gerald C. McDonough, $3, Edward H. Malone,
$3, Marvin L. Mann, $3, and Thomas R. Williams, $3.
BB The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $5, Phyllis
Burke Davis, $5, Richard J. Flynn, $0, E. Bradley Jones, $5, Donald J.
Kirk, $5, William O. McCoy, $0, Gerald C. McDonough, $5, Edward H. Malone,
$5, Marvin L. Mann, $5, and Thomas R. Williams, $5.
CC The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $6, Phyllis
Burke Davis, $6, Richard J. Flynn, $0, E. Bradley Jones, $6, Donald J.
Kirk, $6, William O. McCoy, $0, Gerald C. McDonough, $6, Edward H. Malone,
$6, Marvin L. Mann, $6, and Thomas R. Williams, $6.
DD The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $6, Phyllis
Burke Davis, $6, Richard J. Flynn, $0, E. Bradley Jones, $6, Donald J.
Kirk, $6, William O. McCoy, $0, Gerald C. McDonough, $6, Edward H. Malone,
$6, Marvin L. Mann, $6, and Thomas R. Williams, $6.
EE The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $3, Phyllis
Burke Davis, $3, Richard J. Flynn, $0, E. Bradley Jones, $3, Donald J.
Kirk, $3, William O. McCoy, $0, Gerald C. McDonough, $3, Edward H. Malone,
$3, Marvin L. Mann, $3, and Thomas R. Williams, $3.
FF The following amounts are required to be deferred by each non-interested
Trustee, most of which is subject to vesting: Ralph F. Cox, $10, Phyllis
Burke Davis, $10, Richard J. Flynn, $0, E. Bradley Jones, $10, Donald J.
Kirk, $10, William O. McCoy, $0, Gerald C. McDonough, $10, Edward H.
Malone, $10, Marvin L. Mann, $10, and Thomas R. Williams, $10.
G G For the fiscal year ended February 28, 1997, certain of the
non-interested Trustees' aggregate compensation from Health Care
Portfolio includes accrued voluntary deferred compensation as follows:
Cox $384, Malone $343, Mann $375, Williams $37.
Under a retirement program adopted in July 1988 and modified in November
1995 and November 1996, each non-interested Trustee who retired before
December 30, 1996 may receive payments from a Fidelity fund during his or
her lifetime based on his or her basic trustee fees and length of service.
The obligation of a fund to make such payments is neither secured nor
funded. A Trustee became eligible to participate in the program at the end
of the calendar year in which he or she reached age 72, provided that, at
the time of retirement, he or she had served as a Fidelity fund Trustee for
at least five years.
The non-interested Trustees may elect to defer receipt of all or a
percentage of their annual fees in accordance with the terms of a Deferred
Compensation Plan (the Plan). Under the Plan, compensation deferred by a
Trustee is periodically adjusted as though an equivalent amount had been
invested and reinvested in shares of one or more funds in the complex
designated by such Trustee (designated securities). The amount paid to the
Trustee under the Plan will be determined based upon the performance of
such investments. Deferral of fees in accordance with the Plan will
have a negligible effect on the fund's assets, liabilities, and net income
per share, and will not obligate the fund to retain the services of any
Trustee or to pay any particular level of compensation to the Trustee. A
fund may invest in such designated securities under the Plan without
shareholder approval.
As of December 30, 1996, the non-interested Trustees terminated the
retirement program for Trustees who retire after such date. In connection
with the termination of the retirement program, each then-existing
non-interested Trustee received a credit to his or her Plan account equal
to the present value of the estimated benefits that would have been payable
under the retirement program. The amounts credited to the non-interested
Trustees' Plan accounts are subject to vesting. The termination of the
retirement program and related crediting of estimated benefits to the
Trustees' Plan accounts did not result in a material cost to the funds.
As of February 28, 199 7, the Trustees and officers of each fund
owned, in the aggregate, less than 1% of each fund's total
outstanding shares.
As of February 28, 1997, National Financial Services Corporation,
Boston, MA owned of record 22.22% , 14.51%, 25.74%, 36.03%, 29.23%,15.40%,
15.43%, 31.60%, 34.01%, 26.00%, 6.43%, 26.52%, 18.21%, 27.75%, 23.45%,
20.02%, 9.20%, 17.51%, 25.25%, 13.78%, 23.25%, 9.62%, 22.83%, 8.68%,
16.85%, 29.37%, 26.17%, 19.26%, 20.72%, 28.75%, 18.85%, 19.59%, 15.47%,
24.47%, and 11.85% of the outstanding shares of Air Transportation,
American Gold, Automotive, Brokerage and Investment Management, Chemicals,
Computers, Construction and Housing, Consumer Industries, Defense and
Aerospace, Developing Communications, Electronics, Energy, Energy Service,
Environmental Services, Financial Services, Food and Agriculture, Health
Care, Home Finance, Industrial Equipment, Industrial Materials, Insurance,
Leisure, Medical Delivery, Money Market, Multimedia, Natural Gas, Paper and
Forest Products, Precious Metals and Minerals, Regional Banks, Retailing,
Software and Computers, Technology, Telecommunications, Transportation, and
Utilities Growth. First Trust Corp., Denver, CO owned of record or
beneficially 10.30%, 5.65%, 9.16%, 5.17%, 13.31%, and 10.48% of the
outstanding shares of Consumer Industries, Financial Services, Insurance,
Money Market, Retailing, and Transportation. Charles Schwab and Co., Inc.,
San Francisco, CA owned of record or beneficially 5.05% of the outstanding
shares of Transportation.
At each fund's commencement of operations, FMR owns the majority of the
outstanding shares of Cyclical Industries and Natural Resources.
A shareholder owning of record or beneficially more than 25% of a fund's
outstanding shares may be considered a controlling person. That
shareholder's vote could have a more significant effect on matters
presented at a shareholders' meeting than votes of other shareholders.
MANAGEMENT CONTRACTS
Each fund employs FMR to furnish investment advisory and other services.
Under its management contract with each fund, FMR acts as investment
adviser and, subject to the supervision of the Board of Trustees, directs
the investments of each fund in accordance with its investment objective,
policies, and limitations. FMR also provides each fund with all necessary
office facilities and personnel for servicing each fund's investments,
compensates all officers of each fund and all Trustees who are "interested
persons" of the trust or of FMR, and all personnel of each fund or FMR
performing services relating to research, statistical, and investment
activities.
In addition, FMR or its affiliates, subject to the supervision of the Board
of Trustees, provide the management and administrative services necessary
for the operation of each fund. These services include providing facilities
for maintaining each fund's organization; supervising relations with
custodians, transfer and pricing agents, accountants, underwriters, and
other persons dealing with each fund; preparing all general shareholder
communications and conducting shareholder relations; maintaining each
fund's records and the registration of each fund's shares under federal and
state laws; developing management and shareholder services for each fund;
and furnishing reports, evaluations, and analyses on a variety of subjects
to the Trustees.
In addition to the management fee payable to FMR and the fees payable to
FSC, each fund pays all of its expenses, without limitation, that are not
assumed by those parties. Each fund pays for the typesetting, printing, and
mailing of its proxy materials to shareholders, legal expenses, and the
fees of the custodian, auditor and non-interested Trustees. Although each
fund's current management contract provides that each fund will pay for
typesetting, printing, and mailing prospectuses, statements of additional
information, notices, and reports to shareholders, the trust, on behalf of
each fund has entered into a revised transfer agent agreement with FSC,
pursuant to which FSC bears the costs of providing these services to
existing shareholders. Other expenses paid by each fund include interest,
taxes, brokerage commissions, and each fund's proportionate share of
insurance premiums and Investment Company Institute dues. Each fund is also
liable for such non-recurring expenses as may arise, including costs of any
litigation to which each fund may be a party, and any obligation it may
have to indemnify its officers and Trustees with respect to litigation.
MONEY MARKET FUND. FMR is the money market fund's manager pursuant to a
management contract dated March 1, 1994, which was approved by shareholders
on February 16, 1994.
For the services of FMR under the contract, the money market fund pays FMR
a monthly management fee composed of a group fee rate, an individual fund
fee rate (.03%), and an income-based component of 6% of the fund's gross
income in excess of a 5% yield. The maximum income-based component is .24%
of average net assets.
The group fee rate is based on the monthly average net assets of all of the
registered investment companies with which FMR has management contracts and
is calculated on a cumulative basis pursuant to the graduated fee rate
schedule shown below on the left. The schedule below on the right shows the
effective annual group fee rate at various asset levels,which is the result
of cumulatively applying the annualized rates on the left. For example,
the effective annual fee rate at $472 billion of group net assets - the
approximate level for February 1997 - was .1414%, which is the weighted
average of the respective fee rates for each level of group net assets up
to $472 billion.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate
0 - $3 billion .3700% $ 0.5 billion .3700%
3 - 6 .3400 25 .2664
6 - 9 .3100 50 .2188
9 - 12 .2800 75 .1986
12 - 15 .2500 100 .1869
15 - 18 .2200 125 .1793
18 - 21 .2000 150 .1736
21 - 24 .1900 175 .1695
24 - 30 .1800 200 .1658
30 - 36 .1750 225 .1629
36 - 42 .1700 250 .1604
42 - 48 .1650 275 .1583
48 - 66 .1600 300 .1565
66 - 84 .1550 325 .1548
84 - 120 .1500 350 .1533
120 - 174 .1450 400 .1507
174 - 228 .1400
228 - 282 .1375
282 - 336 .1350
Over 336 .1325
Prior to March 1, 1994, the group fee rate was based on a schedule with
breakpoints ending at .1500% for average group assets in excess of $84
billion. The group fee rate breakpoints shown above for average group
assets in excess of $120 billion and under $228 billion were voluntarily
adopted by FMR on January 1, 1992. The additional breakpoints shown above
for average group assets in excess of $228 billion were voluntarily adopted
by FMR on November 1, 1993. The fund's current management contract reflects
these extensions of the group fee rate schedule.
On August 1, 1994, FMR voluntarily revised the prior extensions to the
group fee rate schedule, and added new breakpoints for average group assets
in excess of $156 billion and under $372 billion as shown in the schedule
below. The revised group fee rate schedule was identical to the above
schedule for average group assets under $156 billion.
On January 1, 1996, FMR voluntarily added new breakpoints to the revised
schedule for average group assets in excess of $372 billion, pending
shareholder approval of a new management contract reflecting the revised
schedule and additional breakpoints. The revised group fee rate schedule
and its extensions provide for lower management fee rates as FMR's assets
under management increase. For average group assets in excess of $156
billion, the revised group fee rate schedule with additional breakpoints
voluntarily adopted by FMR is as follows on page :
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate
120 - $156 billion .1450% $ 150 billion .1736%
156 - 192 .1400 175 .1690
192 - 228 .1350 200 .1652
228 - 264 .1300 225 .1618
264 - 300 .1275 250 .1587
300 - 336 .1250 275 .1560
336 - 372 .1225 300 .1536
372 - 408 .1200 325 .1514
408 - 444 .1175 350 .1494
444 - 480 .1150 375 .1476
480 - 516 .1125 400 .1459
Over 516 .1100 425 .1443
450 .1427
475 .1413
500 .1399
525 .1385
550 .1372
The individual fund fee rate is .03%.
One twelfth of the sum of the group fee rate and the individual fund fee
rate is applied to the fund's average net assets for the current month,
giving a dollar amount which is the fee for that month.
If the fund's monthly gross yield is 5% or less, the total management fee
is the sum of the group fee and the individual fund fee. If the fund's
monthly gross yield is greater than 5%, the management fee that FMR
receives includes an income-based component. The income-based component
equals 6% of that portion of the fund's gross income that represents a
gross yield of more than 5% per year. The maximum income-based component is
.24% (annualized) of average net assets, at a fund gross yield of 9% or
more. Gross income for this purpose, includes interest accrued and/or
discount earned (including both original issue discount and market
discount) on portfolio obligations, less amortization of premium. Realized
and unrealized gains and losses, if any, are not included in gross income.
The fund's management contract with FMR prior to March 1, 1994 was dated
May 1, 1987. For the services of FMR under the contract, the money market
fund paid FMR a monthly management fee computed on the basis of the fund's
gross income. To the extent that the fund's monthly gross income equalled
an annualized yield of 5% or less, FMR received 4% of that amount of the
fund's gross income. To the extent that the fund's monthly income exceeded
an annualized yield of 5%, FMR received 6% of that excess. For this
purpose, gross income includes interest accrued or discount earned
(including both original issue and market discount), less amortization of
premium. The amount of discount or premium on portfolio instruments is
fixed at the time of purchase. Realized and unrealized gains and losses, if
any, are not included in gross income.
Pursuant to the terms of the contract, limitations were imposed on the
compensation FMR could receive under the above formula. These limitations
were based on the fund's average monthly net assets as follows:
Annualized Rate
On the first $1.5 billion .50%
On the portion in excess of $1.5 to $3.0 billion .45%
On the portion in excess of $3.0 billion to $4.5 billion .43%
On the portion in excess of $4.5 billion to $6.0 billion .41%
On the portion in excess of $6.0 billion .40%
SUB-ADVISER . On behalf of the money market fund, FMR has entered
into a sub-advisory agreement with FMR Texas, pursuant to which FMR Texas,
has primary responsibility for providing portfolio investment management
services to the fund.
Under the sub-advisory agreement, dated March 1, 1994, which was approved
by shareholders on February 16, 1994, FMR pays FMR Texas fees equal to 50%
of the management fee payable to FMR under its management contract with the
fund. The fees paid to FMR Texas are not reduced by any voluntary or
mandatory expense reimbursements that may be in effect from time to time.
On behalf of the money market fund, for fiscal 1997, 1996, and 1995, FMR
paid FMR Texas, fees of $792,040, $779,003, and $690,183, respectively.
STOCK FUNDS (EXCEPT CYCLICAL INDUSTRIES AND NATURAL RESOURCES). FMR
is each fund's manager pursuant to management co ntracts dated March 1,
1994, which were approved by shareholders on February 16, 1994.
For the services of FMR under the contract, each fund pays FMR a monthly
management fee composed of the sum of two elements: a group fee rate and an
individual fund fee rate.
The group fee rate is based on the monthly average net assets of all of the
registered investment companies with which FMR has management contracts and
is calculated on a cumulative basis pursuant to the graduated schedule
shown below on the left. The schedule below on the right shows the
effective annual group fee rate at various asset levels, which is the
result of cumulative ly applying the annualized rates on the left. For
example, the effective annual fee rate at $472 billion of group net assets
- - the approximate level for February 1997 - was .3005%, which is the
weighted average of the respective fee rates for each level of group net
assets up to $472 billion.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate
$ 0 - 3 billion .5200% $ 0.5 billion .5200%
3 - 6 .4900 25 .4238
6 - 9 .4600 50 .3823
9 - 12 .4300 75 .3626
12 - 15 .4000 100 .3512
15 - 18 .3850 125 .3430
18 - 21 .3700 150 .3371
21 - 24 .3600 175 .3325
24 - 30 .3500 200 .3284
30 - 36 .3450 225 .3253
36 - 42 .3400 250 .3223
42 - 48 .3350 275 .3198
48 - 66 .3250 300 .3175
66 - 84 .3200 325 .3153
84 - 102 .3150 350 .3133
102 - 138 .3100
138 - 174 .3050
174 - 228 .3000
228 - 282 .2950
282 - 336 .2900
Over 336 .2850
Prior to March 1, 1994, the group fee rate was based on a schedule with
breakpoints ending at .3100% for average group assets in excess of $102
billion. The group fee rate breakpoints shown above for average group
assets in excess of $138 billion and under $228 billion were voluntarily
adopted by FMR on January 1, 1992. The additional breakpoints shown above
for average group assets in excess of $228 billion were voluntarily adopted
by FMR on November 1, 1993. Each fund's current management contract
reflects these extensions of the group fee rate schedule.
On August 1, 1994, FMR voluntarily revised the prior extensions to the
group fee rate schedule, and added new breakpoints for average group assets
in excess of $210 billion and under $390 billion as shown in the schedule
below. The revised group fee rate schedule was identical to the above
schedule for average group assets under $210 billion.
On January 1, 1996, FMR voluntarily added new breakpoints to the revised
schedule for average group assets in excess of $390 billion, pending
shareholder approval of a new management contract reflecting the revised
schedule and additional breakpoints. The revised group fee rate schedule
and its extensions provide for lower management fee rates as FMR's assets
under management increase. For average group assets in excess of $210
billion, the revised group fee rate schedule with additional breakpoints
voluntarily adopted by FMR is as follows:
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual
Assets Rate Assets Fee Rate
174 - $210 billion .3000% $ 150 billion .3371%
210 - 246 .2950 175 .3325
246 - 282 .2900 200 .3284
282 - 318 .2850 225 .3249
318 - 354 .2800 250 .3219
354 - 390 .2750 275 .3190
390 - 426 .2700 300 .3163
426 - 462 .2650 325 .3137
462 - 498 .2600 350 .3113
498 - 534 .2550 375 .3090
Over 534 .2500 400 .3067
425 .3046
450 .3024
475 .3003
500 .2982
525 .2962
550 .2942
The individual fund fee rate is .30%. Based on the average group net assets
of funds advised by FMR for February 1997 , the annual management fee
rate would be calculated as follows:
Group Fee Rate Individual Fund Fee Rate Basic Fee Rate
. 3005 % + .30% = . 6005 %
One twelfth (1/12) of this annual management fee rate is applied to each
fund's net assets averaged for the most recent month, giving a dollar
amount, which is the fee for that month.
CYCLICAL INDUSTRIES AND NATURAL RESOURCES PORTFOLIOS. FMR is each
fund's manager pursuant to management contracts dated January 16, 1997,
which were approved by FMR, the then sole shareholder, on February 14,
1997.
For the services of FMR under the contracts, each fund pays FMR a monthly
management fee composed of the sum of two elements: a group fee rate and an
individual fund fee rate.
The group fee rate is based on the monthly average net assets of all of the
registered investment companies with which FMR has management contracts and
is calculated on a cumulative basis pursuant to the graduated schedule
shown below on the left. The schedule below on the right shows the
effective annual group fee rate at various asset levels, which is the
result of cumulatively applying the annualized rates on the left. For
example, the effective annual fee rate at $472 billion of group net assets
- - the approximate level for February 1997 - was .3005%, which is the
weighted average of the respective fee rates for each level of group net
assets up to $472 billion.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Fee
Assets Rate Assets Rate
0 - $3 billion .5200% $ 0.5 billion .5200%
3 - 6 .4900 25 .4238
6 - 9 .4600 50 .3823
9 - 12 .4300 75 .3626
12 - 15 .4000 100 .3512
15 - 18 .3850 125 .3430
18 - 21 .3700 150 .3371
21 - 24 .3600 175 .3325
24 - 30 .3500 200 .3284
30 - 36 .3450 225 .3249
36 - 42 .3400 250 .3219
42 - 48 .3350 275 .3190
48 - 66 .3250 300 .3163
66 - 84 .3200 325 .3137
84 - 102 .3150 350 .3113
102 - 138 .3100 375 .3090
138 - 174 .3050 400 .3067
174 - 210 .3000 425 .3046
210 - 246 .2950 450 .3024
246 - 282 .2900 475 .3003
282 - 318 .2850 500 .2982
318 - 354 .2800 525 .2962
354 - 390 .2750 550 .2942
390 - 426 .2700
426 - 462 .2650
462 - 498 .2600
498 - 534 .2550
Over 534 .2500
The individual fund fee rate is .30%. Based on the average group net
assets of funds advised by FMR for February 1997, the annual management fee
rate would be calculated as follows:
Group Fee Rate Individual Fund Fee Rate Basic Fee Rate
.3005 % + .30% = .6005 %
One twelfth (1/12) of this annual management fee rate is applied to each
fund's net assets averaged for the most recent month, giving a dollar
amount, which is the fee for that month.
FEES COLLECTED BY FMR. The table on page provides information about
the management fees payable to FMR under the management contracts in effect
for the last three fiscal periods. The column entitled "Gross Management
Fees" provides the dollar amount of management fees provided for under
those contracts. The column entitled "Reimbursements by FMR" lists the sum
of any fees and other expenses of the fund that FMR effectively assumed by
reimbursing the funds for those expenses, as discussed below. Expense
reimbursements represent reductions of FMR's revenues from the funds. The
column entitled "Net Fees" represents the gross management fees payable to
FMR, less the amount of fee and expense reimbursements by FMR during the
period.
FMR may, from time to time, voluntarily reimburse all or a portion of each
fund's operating expenses (exclusive of interest, taxes, brokerage
commissions, and extraordinarily expenses). FMR retains the ability to be
repaid for these expense reimbursements in the amount that expenses fall
below the limit prior to the end of the fiscal year. Expense reimbursements
by FMR will increase each fund's total returns and yield (money market
fund) and repayment of the reimbursement by each fund will lower its total
returns and yield (money market fund).
1MANAGEMENT FEES
Fiscal 1997 Fiscal 1996 Fiscal 1995
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Gross Ex
pense Net Fees Gross Ex
pense Net Fees Gross Expense Net Fees
Management Limit
ation Management Limit
ation Management Limitation
Fees Reim
burse
ments Fees Reim
burse
ments Fees Reimburse
ments
Air $ 539,940 $ 0 $539,940 $425,938 $0 $425,938 $58,574 $ 35,895 $22,679
Transportation
American Gold 2,501,556 0 2,501,556 2,155,590 0 2,155,590 2,170,533 0 2,170,533
Automotive 726,743 0 726,743 363,327 0 363,327 628,194 0 628,194
Biotechnology 4,324,960 0 4,324,960 3,676,822 0 3,676,822A 2,565,447 0 2,565,447
Brokerage and 448,938 0 448,938 204,478 0 204,478A 188,068 111,215 76,853
Investment
Management
Chemicals 745,680 0 745,680 481,260 0 481,260 888,515 0 888,515
Computers 3,309,228 0 3,309,228 2,922,505 0 2,922,505 818,112 0 818,112
Construction and 408,988 0 408,988 258,650 0 258,650 251,922 0 251,922
Housing
Consumer 154,434 0 154,434 219,534 0 219,534A 49,334 25,374 23,960
Industries
Defense and 268,010 0 268,010 131,560 0 131,560A 32,632 75,680 0
Aerospace
Developing 1,856,888 0 1,856,888 2,034,963 0 2,034,963 1,383,242 0 1,383,242
Communications
Electronics 7,859,173 0 7,859,173 5,626,255 0 5,626,255 967,445 0 967,445
Energy 1,066,783 0 1,066,783 691,768 0 691,768 646,577 0 646,577
Energy Service 2,790,650 0 2,790,650 983,400 0 983,400 369,132 0 369,132
Environmental 252,081 0 252,081 195,326 0 195,326 277,824 0 277,824
Services
Financial 1,661,452 0 1,661,452 1,203,738 0 1,203,738 671,165 0 671,165
Services
Food and 1,682,437 0 1,682,437 1,286,233 0 1,286,233 577,884 0 577,884
Agriculture
Health Care 7,661,331 0 7,661,331 6,868,340 0 6,868,340 3,999,219 0 3,999,219
Home Finance 4,201,147 0 4,201,147 2,401,434 0 2,401,434 1,238,263 0 1,238,263
Industrial 560,442 0 560,442 623,645 0 623,645 767,043 0 767,043
Equipment
Industrial 590,927 0 590,927 777,296 0 777,296 1,097,939 0 1,097,939
Materials
Insurance 204,881 0 204,881 129,061 0 129,061 64,796 0 64,796
Leisure 643,761 0 643,761 486,216 0 486,216 452,572 0 452,572
Medical Delivery 1,307,251 0 1,307,251 1,208,374 0 1,208,374 1,329,801 0 1,329,801
Money Market 1,584,080 0 1,584,080 1,558,005 0 1,558,005 1,380,366 0 1,380,366
Multimedia 513,562 0 513,562 587,354 0 587,354 195,423 0 195,423
Natural Gas 679,330 0 679,330 431,858 0 431,858 478,146 0 478,146
Paper and Forest 194,763 0 194,763 355,643 0 355,643 348,896 0 348,896
Products
Precious Metals 2,005,219 0 2,005,219 2,345,736 0 2,345,736 2,704,371 0 2,704,371
and Minerals
Regional Banks 2,534,699 0 2,534,699 1,410,233 0 1,410,233 892,544 0 892,544
Retailing 1,338,783 0 1,338,783 226,958 0 226,958 377,628 0 377,628
Software and 2,546,782 0 2,546,782 1,899,182 0 1,899,182 1,132,169 0 1,132,169
Computer
Services
Technology 2,800,144 0 2,800,144 2,349,322 0 2,349,322 1,278,290 0 1,278,290
Telecommunicati 2,878,937 0 2,878,937 2,590,151 0 2,590,151 2,320,344 0 2,320,344
ons
Transportation 75,979 25,611 50,368 66,606 15,090 51,516A 79,035 0 79,035
Utilities Growth 1,440,039 0 1,440,039 1,615,924 0 1,615,924 1,391,823 0 1,391,823
</TABLE>
A During the period, FMR issued a one-time credit reducing management
fees. The amount of the credit issued to the respective funds was:
Biotechnology $503,762; Brokerage and Investment Management $79,974;
Consumer Industries $22,835; Defense and Aerospace $24,455; and
Transportation $7,559.
SUB-ADVISERS. On behalf of the stock funds (except American Gold
Portfolio), FMR has entered into sub-advisory agreements with FMR U.K. and
FMR Far East. Pursuant to the sub-advisory agreements, FMR may receive
investment advice and research services outside the United States from the
sub-advisers. FMR may also grant the sub-advisers investment management
authority as well as the authority to buy and sell securities if FMR
believes it would be beneficial to the funds.
Currently, FMR U.K. and FMR Far East each focus on issuers in countries
other than the United States such as those in Europe, Asia, and the Pacific
Basin.
FMR U.K. and FMR Far East, which were organized in 1986, are wholly owned
subsidiaries of FMR. Under the sub-advisory agreements FMR pays the fees of
FMR U.K. and FMR Far East. For providing non-discretionary investment
advice and research services, FMR pays FMR U.K. and FMR Far East fees equal
to 110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs
incurred in connection with providing investment advice and research
services.
For providing discretionary investment management and executing portfolio
transactions, FMR pays FMR U.K. and FMR Far East a fee equal to 50% of its
monthly management fee with respect to the fund's average net assets
managed by the sub-adviser on a discretionary basis.
The table below shows the fees paid to the sub-advisers for providing
investment advice and research services on behalf of the funds for the
fiscal years ended February 1997, 1996, and 1995.
For the fiscal years ended 1997, 1996, and 1995, no fees were paid by FMR
to the sub-advisers on behalf of the funds for providing discretionary
investment management or executing portfolio transactions.
FEES PAID BY FMR TO FOREIGN SUB-ADVISERS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FUND FEES PAID BY FMR TO FMR U.K. FEES PAID BY FMR TO FMR FAR EAST
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1997 1996 1995 1997 1996 1995
Air $ 1,385 $7,281 $ 1,184 $ 1,429 $ 7,977 $ 141
Transportation
Auto
motive 16,190 2,829 1,021 14,746 3,065 1,953
Biotech
nology 57,555 43,136 14,099 55,421 45,732 0
Brokerage
and 1,593 1,737 2,134 1,549 1,873 5,666
Investment
Management
Chemicals
11,460 4,067 9,005 11,730 4,360 1,430
Computers
14,494 44,800 1,071 14,124 48,650 6,480
Construc
tion 463 0 9 439 0 61
and Housing
Consumer
190 477 256 189 521 3
Industries
Defense
and 928 323 23 853 367 0
Aerospace
Develop
ing 16,341 31,635 21,581 15,580 35,287 683
Communication
s
Elec
tronics 26,600 50,403 957 22,356 59,693 7,701
Energy 27,154 14,746 12,700 25,283 15,810 0
Energy
Service 26,346 8,516 968 25,339 9,360 0
Environ
mental 1,352 1,469 2,261 1,317 1,640 3
Services
Financial
0 0 907 0 0 855
Services
Food and
1,856 2,915 2,898 1,799 3,087 204
Agriculture
Health
Care 140,931 62,044 18,349 132,786 66,180 0
Home
Finance 13,987 0 9 12,464 0 61
Industrial
1,764 787 41 1,518 907 52
Equipment
Industrial
12,985 10,004 7,396 12,586 11,002 0
Materials
Insurance
153 34 0 146 40 0
Leisure
2,080 5,700 1,372 1,990 6,340 501
Medical 741 0 0 642 0 0
Delivery
Multimedia
3,001 6,935 626 2,963 7,504 296
Natural
Gas 786 1,012 2,100 660 1,005 360
Paper
and 1,218 2,270 2,521 1,118 2,457 34
Forest Products
Precious
Metals 104,793 118,405 107,341 101,856 126,271 23,056
and Minerals
Regional
Banks 2,772 0 0 2,458 0 0
Retailing
1,846 585 107 1,805 632 0
Software
and 16,414 5,397 7,534 15,288 6,305 115
Computer
Services
Technology
16,385 36,101 3,283 14,600 39,503 7,604
Tele
communic 24,984 53,688 38,500 24,546 57,717 5,830
ations
Transport
ation 563 289 657 539 310 248
Utilities
3,110 4,286 2,167 3,012 4,379 176
Growth
</TABLE>
CONTRACTS WITH FMR AFFILIATES
FSC, an affiliate of FMR, is transfer, dividend disbursing, and
shareholder servicing agent for each fund. FSC receives an annual account
fee and an asset-based fee each based on account size and fund type for
each retail account and certain institutional accounts. With respect to
certain institutional retirement accounts, FSC receives an annual account
fee and an asset-based fee based on account type or fund type. These annual
account fees are subject to increase based on postal rate changes.
The asset-based fees are subject to adjustment if the year-to-date
total return of the S&P 500 exceeds a positive or negative 15%. FSC
also collects small account fees from certain accounts with balances of
less than $2,500.
FSC pays out-of-pocket expenses associated with providing transfer agent
services. In addition, FSC bears the expense of typesetting, printing, and
mailing prospectuses, statements of additional information, and all other
reports, notices, and statements to shareholders, with the exception of
proxy statements.
FSC also performs the calculations necessary to determine each fund's net
asset value per share and dividends, and maintains each fund's accounting
records. The annual fee rates for these pricing and bookkeeping services
are based on each fund's average net assets, specifically, .1000% for the
first $500 million of average net assets and .0500% of average net
assets in excess of $500 million. The fee is limited to a minimum of
$60,000 and a maximum of $800,000 per year.
The table below shows the fees paid to FSC for pricing and bookkeeping
services, including related out-of-pocket expenses during each fund's last
three fiscal years.
PRICING AND BOOKKEEPING FEES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FISCAL 1997 FISCAL 1996 FISCAL 1995
</TABLE>
Air $ 92,138 $ 73,290 $ 45,044
Transportation
American Gold 416,410 351,847 351,263
Automotive 120,805 60,082 101,598
Biotechnology 612,580 527,898 427,062
Brokerage and 88,697 47,818 45,614
Investment
Management
Chemicals 123,784 78,925 144,351
Computers 520,629 454,150 132,274
Construction 76,325 49,539 49,640
and Housing
Consumer 60,450 59,535 45,039
Industries
Defense and 61,443 47,698 45,035
Aerospace
Developing 308,377 333,332 223,703
Communicatio
ns
Electronics 799,758 651,136 159,153
Energy 177,681 112,800 116,560
Energy Service 445,567 160,802 61,676
Environmental 64,394 47,732 49,038
Services
Financial 276,349 196,984 108,517
Services
Food and 279,388 210,607 93,455
Agriculture
Health Care 805,100 738,412 593,155
Home Finance 596,198 382,635 200,207
Industrial 93,288 102,205 123,986
Equipment
Industrial 98,357 127,391 177,982
Materials
Insurance 60,415 47,689 45,049
Leisure 107,125 79,740 73,182
Medical 215,825 197,086 217,243
Delivery
Money Market 108,892 99,064 100,919
Multimedia 85,280 96,559 45,584
Natural Gas 113,435 70,811 77,295
Paper and 60,429 62,846 62,045
Forest Products
Precious Metals 333,124 383,741 431,938
and Minerals
Regional Banks 408,850 231,139 144,275
Retailing 222,542 47,630 67,016
Software and 419,686 307,359 188,418
Computer
Services
Technology 466,774 378,688 206,675
Telecommunic 479,593 418,462 380,164
ations
Transportation 60,368 47,681 45,053
Utilities 239,403 264,628 225,235
Growth
FSC also receives fees for administering each fund's securities lending
program. Securities lending fees are based on the number and duration of
individual securities loans. The table below shows the securities lending
fees paid by the affected funds to FSC during each fund's last three
fiscal years. No securities lending fees were incurred by those funds
not listed below.
SECURITIES LENDING FEES
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FISCAL 1997 FISCAL 1996 FISCAL 1995
American Gold $ 3,065 $ 3,985 $ 0
Biotechnology 9,415 10,900 12,005
Chemicals 770 180 690
Computers 6,265 11,060 0
Construction 445 0 0
and Housing
Electronics 13,690 12,190 3,015
Energy 2,320 1,115 230
Energy Service 1,290 380 595
Financial 0 305 0
Services
Health Care 7,915 12,373 20,600
Industrial 0 2,065 400
Materials
Medical 8,900 3,795 2,120
Delivery
Paper and 0 375 230
Forest Products
Precious Metals 710 325 50
and Minerals
Retailing 4,965 2,010 3,535
Software and 5,940 5,525 4,245
Computer
Services
Technology 16,005 11,840 0
Telecommunic 10,530 11,295 5,140
ations
Utilities 780 120 140
Growth
Regional Banks 3,860 0 0
</TABLE>
Currently, FSC is credited with a $7.50 exchange fee for each exchange from
a stock fund, including each exchange from a stock fund to another Fidelity
fund. The aggregate exchange fees retained by FSC during fiscal 1997,
1996, and 1995 amounted to $4,585,238, $4,400,274, and $2,942,608,
respectively. The funds are credited with redemption fees, the amounts of
which are based on the length of time shares are held in an equity fund
prior to redemption.
Each fund has a distribution agreement with FDC, a Massachusetts
corporation organized on July 18, 1960. FDC is a broker-dealer registered
under the Securities Exchange Act of 1934 and is a member of the National
Association of Securities Dealers, Inc. The distribution agreements call
for FDC to use all reasonable efforts, consistent with its other business,
to secure purchasers for shares of each fund, which are continuously
offered. Promotional and administrative expenses in connection with the
offer and sale of shares are paid by FDC.
For fiscal 1997, 1996, and 1995, FDC collected, in the aggregate,
$550,208, $560,711, and $657,652, respectively, of deferred sales charges
from the total value of shares redeemed by shareholders in all funds and
from the Select Cash Reserves Account. On October 12, 1990, the fund's 2%
sales charge was increased to 3% and the 1% deferred sales charge was
eliminated. For fiscal 1997, 1996, and 1995, FDC collected in the
aggregate, $51,023,883, $71,957,898, and $33,024,875, respectively of
front-end sales charges. The following table shows the sales charge revenue
paid to, and retained by, FDC for the following fiscal periods.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1997 1996 1995
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
Sales Deferred Sales Deferred Sales Deferred
Charges Sales Charges Sales Charges Sales
Charges Charges Charges
Air $688,390 $ 1,386 $ 880,267 $ 1,398 $ 105,357 $ 1,000
Transportation
American
Gold 1,162,696 43,678 1,434,655 40,619 1,481,818 43,732
Automotive
466,135 2,159 381,296 3,109 444,228 7,057
Biotech
nology 1,854,442 41,551 3,591,690 28,707 937,105 38,451
Brokerage
and 903,649 1,311 222,268 5,017 147,041 3,502
Investment
Management
Chemicals
579,393 6,478 529,419 23,318 1,051,981 6,676
Computers
2,540,952 5,155 7,703,101 10,256 2,229,925 6,636
Construc
tion 174,919 1,261 309,250 1,448 128,632 4,159
and Housing
Consumer
169,639 682 372,748 1,264 28,529 1,621
Industries
Defense
and 292,571 1,408 256,417 4,056 55,192 654
Aerospace
Developing
733,692 7,987 2,513,224 4,453 1,273,859 6,404
Communication
s
Electronics
9,021,074 9,923 15,086,139 18,130 2,406,616 6,916
Energy 1,029,850 14,667 555,520 29,054 508,448 19,469
Energy
Service 4,165,989 10,974 1,453,689 6,886 348,174 8,516
Environ
mental 177,009 9,944 80,412 12,652 97,853 24,202
Services
Financial
1,400,884 8,487 1,419,292 10,479 350,591 10,842
Services
Food and
1,095,115 7,683 1,756,887 2,759 288,346 6,662
Agriculture
Health
Care 2,553,184 69,909 5,991,249 54,291 1,959,254 69,232
Home
Finance 5,869,188 4,653 4,216,342 1,985 1,612,246 6,186
Industrial
252,021 2,660 541,013 7,928 1,442,065 6,353
Equipment
Industrial
866,268 4,072 596,846 12,636 1,749,955 4,699
Materials
Insurance
248,750 1,364 300,141 6,193 103,690 732
Leisure
282,104 14,717 451,945 17,764 210,050 24,969
Medical
567,463 6,016 1,501,132 6,879 1,314,731 8,345
Delivery
Money
Market 2,788,424 97,630 4,472,949 76,760 3,280,023 156,149
Multimedia
338,283 4,261 923,712 3,278 177,841 3,103
Natural
Gas 682,901 2,332 268,316 7,860 367,823 3,010
Paper
and 126,407 2,892 526,735 3,068 691,097 2,973
Forest Products
Precious
Metals 669,762 45,427 1,543,064 52,879 2,403,153 55,156
and Minerals
Regional
Banks 3,497,512 3,702 2,017,787 3,130 1,112,238 4,584
Retailing
838,536 4,812 266,970 5,475 307,005 2,778
Software
and 1,921,006 5,034 3,293,250 6,803 1,239,048 8,732
Computer
Services
Technology
1,543,709 36,252 3,609,138 41,004 1,145,527 25,706
Telecomm
unica 1,182,016 30,536 2,050,876 25,598 1,442,750 19,309
tions
Transport
ation 101,332 682 157,256 2,170 96,688 771
Utilities
Growth 238,618 38,523 682,903 21,405 485,996 58,366
Totals $51,023,883 $ 550,208 $ 71,957,898 $ 560,711 $ 33,024,875 $ 657,652
</TABLE>
DESCRIPTION OF THE TRUST
TRUST ORGANIZATION. Fidelity Select Portfolios is an open-end management
investment company organized as a Massachusetts business trust on November
20, 1980. Subsequent to the reorganization of certain funds of the trust on
October 26, 1990, Automation and Machinery Portfolio, Life Insurance
Portfolio, and Restaurant Industry Portfolio no longer exist. Also due to
the reorganization, Capital Goods Portfolio was renamed "Industrial
Technology Portfolio," and Property and Casualty Insurance Portfolio was
renamed "Insurance Portfolio." Subsequent to an additional reorganization
on February 25, 1994, Electric Utilities Portfolio no longer exists.
On July 18, 1996, Consumer Products Portfolio was renamed "Consumer
Industries."
On August 3, 1994 Utilities Portfolio was renamed "Utilities Growth
Portfolio."
On April 30, 1994, Broadcast and Media Portfolio was renamed "Multimedia
Portfolio."
On February 17, 1993, Savings and Loan Portfolio was renamed "Home Finance
Portfolio."
On June 29, 1992, Industrial Technology Portfolio was renamed "Industrial
Equipment Portfolio."
On June 14, 1990, Housing Portfolio was renamed "Construction and Housing
Portfolio."
On July 10, 1987, Health Care Delivery Portfolio was renamed "Medical
Delivery Portfolio."
On July 29, 1985, Leisure and Entertainment Portfolio was renamed "Leisure
Portfolio."
Currently there are thirty-eight funds of the trust: Air Transportation
Portfolio, American Gold Portfolio, Automotive Portfolio, Biotechnology
Portfolio, Brokerage and Investment Management Portfolio, Chemicals
Portfolio, Computers Portfolio, Construction and Housing Portfolio,
Consumer Industries Portfolio, Cyclical Industries Portfolio, Defense and
Aerospace Portfolio, Developing Communications Portfolio, Electronics
Portfolio, Energy Portfolio, Energy Service Portfolio, Environmental
Services Portfolio, Financial Services Portfolio, Food and Agriculture
Portfolio, Health Care Portfolio, Home Finance Portfolio, Industrial
Equipment Portfolio, Industrial Materials Portfolio, Insurance Portfolio,
Leisure Portfolio, Medical Delivery Portfolio, Multimedia Portfolio,
Natural Gas Portfolio, Natural Resources Portfolio, Paper and Forest
Products Portfolio, Precious Metals and Minerals Portfolio, Regional Banks
Portfolio, Retailing Portfolio, Software and Computer Services Portfolio,
Technology Portfolio, Telecommunications Portfolio, Transportation
Portfolio, Utilities Growth Portfolio, Money Market Portfolio. The
Declaration of Trust permits the Trustees to create additional funds.
In the event that FMR ceases to be the investment adviser to the trust or a
fund, the right of the trust or fund to use the identifying name "Fidelity"
may be withdrawn. There is a remote possibility that one fund might become
liable for any misstatement in its prospectus or statement of additional
information about another fund.
The assets of the trust received for the issue or sale of shares of each
fund and all income, earnings, profits, and proceeds thereof, subject only
to the rights of creditors, are especially allocated to such fund, and
constitute the underlying assets of such fund. The underlying assets of
each fund are segregated on the books of account, and are to be charged
with the liabilities with respect to such fund and with a share of the
general expenses of the trust. Expenses with respect to the trust are to be
allocated in proportion to the asset value of the respective funds, except
where allocations of direct expense can otherwise be fairly made. The
officers of the trust, subject to the general supervision of the Board of
Trustees, have the power to determine which expenses are allocable to a
given fund, or which are general or allocable to all of the funds. In the
event of the dissolution or liquidation of the trust, shareholders of each
fund are entitled to receive as a class the underlying assets of such fund
available for distribution.
SHAREHOLDER AND TRUSTEE LIABILITY. The trust is an entity of the type
commonly known as "Massachusetts business trust." Under Massachusetts law,
shareholders of such a trust may, under certain circumstances, be held
personally liable for the obligations of the trust. The Declaration of
Trust provides that the trust shall not have any claim against shareholders
except for the payment of the purchase price of shares and requires that
each agreement, obligation, or instrument entered into or executed by the
trust or the Trustees shall include a provision limiting the obligations
created thereby to the trust and its assets. The Declaration of Trust
provides for indemnification out of each fund's property of any
shareholders held personally liable for the obligations of the fund. The
Declaration of Trust also provides that each fund shall, upon request,
assume the defense of any claim made against any shareholder for any act or
obligation of the fund and satisfy any judgment thereon. Thus, the risk of
a shareholder incurring financial loss on account of shareholder liability
is limited to circumstances in which the fund itself would be unable to
meet its obligations. FMR believes that, in view of the above, the risk of
personal liability to shareholders is remote.
The Declaration of Trust further provides that the Trustees, if they have
exercised reasonable care, will not be liable for any neglect or
wrongdoing, but nothing in the Declaration of Trust protects Trustees
against any liability to which they would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence, or reckless disregard of
the duties involved in the conduct of their office.
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. As a shareholder, you receive one vote for each dollar value of
net asset value you own. The shares have no preemptive or conversion
rights; the voting and dividend rights, the right of redemption, and the
privilege of exchange are described in the Prospectus. Shares are fully
paid and nonassessable, except as set forth under the heading "Shareholder
and Trustee Liability" above. Shareholders representing 10% or more of the
trust or a fund may, as set forth in the Declaration of Trust, call
meetings of the trust or a fund for any purpose related to the trust or
fund, as the case may be, including, in the case of a meeting of the entire
trust, the purpose of voting on removal of one or more Trustees. The trust
or any fund may be terminated upon the sale of its assets to another
open-end management investment company, or upon liquidation and
distribution of its assets, if approved by vote of the holders of a
majority of the trust or the fund, as determined by the current value of
each shareholder's investment in the fund or trust. If not so terminated,
the trust and the funds will continue indefinitely. Each fund may invest
all of its assets in another investment company.
CUSTODIAN. Brown Brothers Harriman & Co., 40 Water Street, Boston,
Massachusetts, is custodian of the assets of the stock funds. The Bank of
New York, 110 Washington Street, New York, New York is custodian of the
assets of the money market fund. The custodian is responsible for the
safekeeping of a fund's assets and the appointment of the subcustodian
banks and clearing agencies. The custodian takes no part in determining the
investment policies of a fund or in deciding which securities are purchased
or sold by a fund. However, a fund may invest in obligations of the
custodian and may purchase securities from or sell securities to the
custodian. The Bank of New York (stock funds only) and The Chase
Manhattan Bank , each headquartered in New York, also may serve as a
special purpose custodian of certain assets in connection with
repurchase agreement transactions.
FMR, its officers and directors, its affiliated companies, and the Board of
Trustees may, from time to time, conduct transactions with various banks,
including banks serving as custodians for certain funds advised by FMR. The
Boston branch of the stock funds' custodian leases its office space from an
affiliate of FMR at a lease payment which, when entered into, was
consistent with prevailing market rates. Transactions that have occurred to
date include mortgages and personal and general business loans. In the
judgment of FMR, the terms and conditions of those transactions were not
influenced by existing or potential custodial or other fund relationships.
AUDITOR. Price Waterhouse LLP, 160 Federal Street, Boston, Massachusetts,
serves as the trust's independent accountant. The auditor examines
financial statements for the funds and provides other audit, tax, and
related services.
LITIGATION. In December 1995, a single individual who purchased shares
of Apple Computer, Inc. ("Apple") in September 1995 filed a purported class
action complaint in the United States District Court in Boston against
Select Technology Portfolio, Select Computers Portfolio and others. The
complaint alleges that, in violation of a federal securities law and state
common law, the funds' portfolio manager made misleading statements
regarding Apple and the funds' holdings of Apple. The defendants deny the
allegations in the complaint and intend to defend the lawsuits
vigorously.
FINANCIAL STATEMENTS
Each fund's financial statements and financial highlights for the fiscal
year ended February 28 , 1997 and report of the auditor, are included
in the funds' Annual Report, which is a separate report supplied with this
SAI. The funds' financial statements, including the financial highlights,
and report of the auditor are incorporated herein by reference. For a free
additional copy of the funds' Annual Report, contact Fidelity at
1-800-544-8888, 82 Devonshire Street, Boston, MA 02109.
APPENDIX
DESCRIPTION OF MOODY'S INVESTORS SERVICE RATINGS OF COMMERCIAL PAPER
Moody's assigns short-term debt ratings to obligations which have an
original maturity not exceeding one year.
Issuers rated PRIME-1 (or related supporting institutions) have a
superior ability for repayment of principal and payment of interest.
Issuers rated PRIME-2 (or related supporting institutions) have a
strong ability for repayment of principal and payment of interest.
DESCRIPTION OF STANDARD & POOR'S RATINGS OF COMMERCIAL PAPER
Debt issues considered short-term in the relevant market may be assigned a
Standard & Poor's commercial paper rating.
A-1 - This highest category indicates that the degree of safety
regarding timely payment is strong. Those issues determined to possess
extremely strong safety characteristics are denoted with a plus sign (+)
designation.
A-2 - Capacity for timely payment on issues with this designation is
satisfactory. However, the relative degree of safety is not as high as for
issues designated A-1.
DESCRIPTION OF MOODY'S INVESTORS SERVICE RATINGS OF CORPORATE BONDS
Moody's ratings for obligations with an original remaining maturity in
excess of one year fall within nine categories. They range from Aaa
(highest quality) to C (lowest quality). Moody applies numerical modifiers
of 1, 2, or 3 to each generic rating classification from Aa through B. The
modifier 1 indicates that the security ranks in the higher end of its
generic rating category; the modifier 2 indicates a mid-range ranking; and
the modifier 3 indicates that the issue ranks on the lower end of its
generic rating category.
AAA - Bonds that are rated Aaa are judged to be of the best quality.
They carry the smallest degree of investment risk and are generally
referred to as "gilt edged." Interest payments are protected by a large or
by an exceptionally stable margin and principal is secure. While the
various protective elements are likely to change, such changes as can be
visualized are most unlikely to impair the fundamentally strong position of
such issues.
AA - Bonds that are rated Aa are judged to be of high quality by all
standards. Together with the Aaa group they comprise what are generally
known as high-grade bonds. They are rated lower than the best bonds because
margins of protection may not be as large as in Aaa securities or
fluctuation of protective elements may be of greater amplitude or there may
be other elements present which make the long-term risks appear somewhat
larger than the Aaa securities.
A - Bonds that are rated A possess many favorable investment
attributes and are to be considered as upper-medium-grade obligations.
Factors giving security to principal and interest are considered adequate
but elements may be present which suggest a susceptibility to impairment
sometime in the future.
BAA - Bonds that are rated Baa are considered as medium-grade
obligations, (i.e., they are neither highly protected nor poorly secured).
Interest payments and principal security appear adequate for the present
but certain protective elements may be lacking or may be characteristically
unreliable over any great length of time. Such bonds lack outstanding
investment characteristics and in fact have speculative characteristics as
well.
BA - Bonds that are rated Ba are judged to have speculative
elements; their future cannot be considered as well assured. Often the
protection of interest and principal payments may be very moderate and
thereby not well safeguarded during both good and bad times over the
future. Uncertainty of position characterizes bonds in this class.
B - Bonds that are rated B generally lack characteristics of the
desirable investment. Assurance of interest and principal payments or of
maintenance of other terms of the contract over any long period of time may
be small.
CAA - Bonds that are rated Caa are of poor standing. Such issues may
be in default or there may be present elements of danger with respect to
principal or interest.
CA - Bonds that are rated Ca represent obligations which are
speculative in a high degree. Such issues are often in default or have
other marked short-comings.
C - Bonds that are rated C are the lowest-rated class of bonds and
issues so rated can be regarded as having extremely poor prospects of ever
attaining any real investment standing.
DESCRIPTION OF STANDARD & POOR'S RATINGS OF CORPORATE BONDS
Debt issues may be designated by Standard & Poor's as either investment
grade ("AAA" through "BBB") or speculative grade ("BB" through "D"). While
speculative grade debt will likely have some quality and protective
characteristics, these are outweighed by large uncertainties or major
exposures to adverse conditions. Ratings from AA to CCC may be modified by
the addition of a plus sign (+) or minus sign (-) to show relative standing
within the major rating categories.
AAA - Debt rated AAA has the highest rating assigned by Standard &
Poor's to a debt obligation. Capacity to pay interest and repay principal
is extremely strong.
AA - Debt rated AA has a very strong capacity to pay interest and
repay principal and differs from the higher-rated issues only in small
degree.
A - Debt rated A has a strong capacity to pay interest and repay
principal, although it is somewhat more susceptible to the adverse effects
of changes in circumstances and economic conditions than debt in higher
rated categories.
BBB - Debt rated BBB is regarded as having an adequate capacity to
pay interest and repay principal. Whereas it normally exhibits adequate
protection parameters, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity to pay
interest and repay principal for debt in this category than in higher-rated
categories.
BB - Debt rated BB has less near-term vulnerability to default than
other speculative issues. However, it faces major ongoing uncertainties or
exposure to adverse business, financial, or economic conditions which could
lead to inadequate capacity to meet timely interest and principal payments.
The BB rating category is also used for debt subordinated to senior debt
that is assigned an actual or implied BBB- rating.
B - Debt rated B has a greater vulnerability to default but
currently has the capacity to meet interest payments and principal
repayments. Adverse business, financial, or economic conditions will likely
impair capacity or willingness to pay interest and repay principal. The B
rating category is also used for debt subordinated to senior debt that is
assigned an actual or implied BB or BB- rating.
CCC - Debt rated CCC has a currently identifiable vulnerability to
default, and is dependent upon favorable business, financial, and economic
conditions to meet timely payment of interest and repayment of principal.
In the event of adverse business, financial, or economic conditions, it is
not likely to have the capacity to pay interest and repay principal. The
CCC rating category is also used for debt subordinated to senior debt that
is assigned an actual or implied B or B- rating.
CC - Debt rated CC is typically applied to debt subordinated to
senior debt which is assigned an actual or implied CCC debt rating.
C - The rating C is typically applied to debt subordinated to senior
debt which is assigned an actual or implied CCC- debt rating. The C rating
may be used to cover a situation where a bankruptcy petition has been filed
but debt service payments are continued.
CI - The rating CI is reserved for income bonds on which no interest
is being paid.
D - Debt rated D is in payment default. The D rating category is
used when interest payments or principal payments are not made on the date
due even if the applicable grace period has not expired, unless S&P
believes that such payments will be made during such grace period. The D
rating will also be used upon the filing of a bankruptcy petition if debt
service payments are jeopardized.
PART C. OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements and Financial Highlights, included in the Annual
Report, for the Fidelity Select Portfolios for the fiscal year ended
February 28, 1997, are incorporated by reference into the funds' Statement
of Additional Information and were filed on April 22, 1997 for Fidelity
Select Portfolios (No. 811-3114) pursuant to Rule 30d-1 under the
Investment Company Act of 1940 and are incorporated herein by reference.
(b) Exhibits.
(1)(a) Amended and Restated Declaration of Trust, dated April 14, 1994, is
incorporated herein by reference to Exhibit 1(a) of Post-Effective
Amendment No. 48.
(2) Bylaws of the Trust, as amended, are incorporated herein by reference
to Exhibit 2(a) of Fidelity Union Street Trust's (File no. 2-50318)
Post-Effective Amendment No. 87.
(3) Not applicable.
(4) Not applicable.
(5)(a) Management Contracts, dated March 1, 1994, between the Registrant's
Air Transportation, American Gold, Automotive, Biotechnology, Brokerage and
Investment Management, Chemicals, Computers, Construction and Housing
(formerly Housing), Consumer Industries (formerly Consumer Products),
Defense and Aerospace, Developing Communications, Electronics, Energy,
Energy Service, Environmental Services, Financial Services, Food and
Agriculture, Health Care, Home Finance (formerly Savings and Loan),
Industrial Equipment (formerly Industrial Technology), Industrial
Materials, Insurance (formerly Property and Casualty Insurance), Leisure,
Medical Delivery, Multimedia (formerly Broadcast and Media), Natural Gas,
Paper and Forest Products, Precious Metals and Minerals, Regional Banks,
Retailing, Software and Computer Services, Technology, Telecommunications,
Transportation, Utilities Growth (formerly Utilities), and Money Market
Portfolios and Fidelity Management & Research Company, are incorporated
herein by reference to Exhibit Nos. 5(a)(1-36) of Post-Effective Amendment
No. 48.
(b) Sub-Advisory Agreements, dated March 1, 1994, between Fidelity
Management & Research Company and Fidelity Management & Research (U.K.)
Inc. and between Fidelity Management & Research Company and Fidelity
Management & Research (Far East) Inc., respectively, with respect to the
Registrant's Air Transportation, Automotive, Biotechnology, Brokerage and
Investment Management, Chemicals, Computers, Construction and Housing
(formerly Housing), Consumer Industries (formerly Consumer Products),
Defense and Aerospace, Developing Communications, Electronics, Energy,
Energy Service, Environmental Services, Financial Services, Food and
Agriculture, Health Care, Home Finance (formerly Savings and Loan),
Industrial Equipment (formerly Industrial Technology), Industrial
Materials, Insurance (formerly Property and Casualty Insurance), Leisure,
Medical Delivery, Multimedia (formerly Broadcast and Media), Natural Gas,
Paper and Forest Products, Precious Metals and Minerals, Regional Banks,
Retailing, Software and Computer Services, Technology, Telecommunications,
Transportation, and Utilities Growth (formerly Utilities) Portfolios, are
incorporated herein by reference to Exhibit Nos. 5(b)(1-34) of
Post-Effective Amendment No. 48.
(c) Sub-Advisory Agreement, dated January 1, 1990, between Fidelity
Management & Research Company and FMR Texas Inc. with respect to the Money
Market Portfolio, is incorporated herein by reference to Exhibit 5(c) of
Post-Effective Amendment No. 51.
(d) Management Contract, dated January 16, 1997, between Cyclical
Industries Portfolio and Fidelity Management & Research Company, is filed
herein as Exhibit 5(d).
(e) Management Contract, dated January 16, 1997, between Natural
Resources Portfolio and Fidelity Management & Research Company, is
incorporated herein by reference to Exhibit 5(e) of Post-Effective
Amendement 58.
(f) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity
Management & Research (U.K.) Inc. and Fidelity Management & Research
Company on behalf of Cyclical Industries Portfolio, is filed herein as
Exhibit 5(f).
(g) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity
Management & Research (Far East) Inc. and Fidelity Management & Research
Company on behalf of Cyclical Industries Portfolio, is filed herein as
Exhibit 5(g).
(h) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity
Management & Research (U.K.) Inc. and Fidelity Management & Research
Company on behalf of Natural Resources Portfolio, is filed herein as
Exhibit 5(h).
(i) Sub-Advisory Agreement, dated January 16, 1997, between Fidelity
Management & Research (Far East) Inc. and Fidelity Management & Research
Company on behalf of Natural Resources Portfolio, is filed herein as
Exhibit 5(i).
(6)(a) General Distribution Agreements, dated April 1, 1987, between the
Registrant's Air Transportation, American Gold, Automotive, Biotechnology,
Brokerage and Investment Management, Chemicals, Computers, Construction and
Housing (formerly Housing), Defense and Aerospace, Electronics, Energy,
Energy Service, Financial Services, Food and Agriculture, Health Care, Home
Finance (formerly Savings and Loan), Industrial Materials, Insurance
(formerly Property and Casualty Insurance), Leisure, Medical Delivery,
Money Market, Multimedia (formerly Broadcast and Media), Paper and Forest
Products, Precious Metals and Minerals, Regional Banks, Retailing, Software
and Computer Services, Technology, Telecommunications, Transportation, and
Utilities Growth (formerly Utilities) Portfolios and Fidelity Distributors
Corporation, are incorporated herein by reference to Exhibit Nos.
6(a)(1-31) of Post-Effective Amendment No. 51.
(b) Amendment to General Distribution Agreements, dated January 1,
1988, between the Registrant's Air Transportation, American Gold,
Automotive, Biotechnology, Brokerage and Investment Management, Chemicals,
Computers, Construction and Housing (formerly Housing), Defense and
Aerospace, Electronics, Energy, Energy Service, Financial Services, Food
and Agriculture, Health Care, Home Finance (formerly Savings and Loan),
Industrial Materials, Industrial Equipment (formerly Capital Goods),
Insurance (formerly Property and Casualty Insurance), Leisure, Medical
Delivery, Money Market, Multimedia (formerly Broadcast and Media), Paper
and Forest Products, Precious Metals and Minerals, Regional Banks,
Retailing, Software and Computer Services, Technology, Telecommunications,
Transportation, and Utilities Growth (formerly Utilities) Portfolios and
Fidelity Distributors Corporation, is incorporated herein by reference to
Exhibit 6(b) of Post-Effective Amendment No. 51.
(c) General Distribution Agreement, dated June 29, 1989, between the
Registrant's Environmental Services Portfolio and Fidelity Distributors
Corporation, is incorporated herein by reference to Exhibit 6(c) of
Post-Effective Amendment No. 51.
(d) General Distribution Agreement, dated June 14, 1990, between the
Registrant's Consumer Industries (formerly Consumer Products) Portfolio and
Fidelity Distributors Corporation, is incorporated herein by reference to
Exhibit 6(d) of Post-Effective Amendment No. 51.
(e) General Distribution Agreement, dated June 14, 1990 between the
Registrant's Developing Communications Portfolio and Fidelity Distributors
Corporation, is incorporated herein by reference to Exhibit 6(e) of
Post-Effective Amendment No. 51.
(f) General Distribution Agreement, dated April 15, 1993, between the
Registrant's Natural Gas Portfolio and Fidelity Distributors Corporation,
is incorporated herein by reference to Exhibit 6(f) of Post-Effective
Amendment No. 46.
(g) Amendment, dated May 10, 1994, to the General Distribution
Agreement, dated April 15, 1993, between the Registrant's Natural Gas
Portfolio and Fidelity Distributors Corporation, is incorporated herein by
reference to Exhibit 6(g) of Post-Effective Amendment No. 50.
(h) General Distribution Agreement, dated April 1, 1987, between the
Registrant's Industrial Equipment (formerly Capital Goods) Portfolio and
Fidelity Distributors Corporation, is incorporated herein by reference to
Exhibit 6(h) of Post-Effective Amendment No. 54.
(i) General Distribution Agreement, dated January 16, 1997, between
Cyclical Industries Portfolio and Fidelity Distributors Corporation, is
filed herein as Exhibit 6(i).
(j) General Distribution Agreement, dated January 16, 1997, between
Natural Resources Portfolio and Fidelity Distributors Corporation, is filed
herein as Exhibit 6(j).
(k) Amendments, dated March 14, 1996 and July 15, 1996, to the General
Distribution Agreement between Fidelity Select Portfolios on behalf of each
Fidelity Select Portfolio except Fidelity Select Natural Gas Portfolio,
Fidelity Select Cyclical Industries Portfolio, and Fidelity Select Natural
Resources Portfolio and Fidelity Distributors Corporation are incorporated
herein by reference to Exhibit 6(k) of Post-Effective Amendement No. 57.
(l) Amendments, dated March 14, 1996 and July 15, 1996, to the General
Distribution Agreement between Fidelity Select Portfolios on behalf of
Fidelity Select Natural Gas Portfolio and Fidelity Distributors Corporation
are incorporated herein by reference to Exhibit 6(l) of Post-Effective
Amendement No. 57.
(m) Form of Bank Agency Agreement (most recently revised January,
1997) is filed herein as Exhibit 6(m).
(n) Form of Selling Dealer Agreement for Bank-Related Transactions
(most recently revised January, 1997) is filed herein as Exhibit 6(n).
(7)(a) Retirement Plan for Non-Interested Person Trustees, Directors or
General Partners, as amended November 16, 1995, is incorporated herein by
reference to Exhibit 7(a) of Post-Effective Amendment No. 54.
(b) The Fee Deferral Plan for Non-Interested Person Directors and
Trustees of the Fidelity Funds, effective as of December 1, 1995, is
incorporated herein by reference to Exhibit 7(b) of Fidelity School Street
Trust's (File No. 2-57167) Post-Effective Amendment No. 47.
(8)(a) Custodian Agreement and Appendix C, dated September 1, 1994,
between Brown Brothers Harriman & Company and Fidelity Select Portfolios on
behalf of the equity portfolios with the exception of Cyclical Industries
and Natural Resources Portfolios is incorporated herein by reference to
Exhibit 8(a) of Fidelity Commonwealth Trust's Post-Effective Amendment No.
56 (File No. 2-52322).
(b) Appendix A, dated January 18, 1996, to the Custodian Agreement,
dated September 1, 1994, between Brown Brothers Harriman & Company and
Fidelity Select Portfolios on behalf of the equity portfolios with the
exception of Cyclical Industries and Natural Resources Portfolios is
incorporated herein by reference to Exhibit 8(d) of Fidelity Investment
Trust's Post-Effective Amendment No. 65 (File No. 2-90649).
(c) Appendix B, dated May 16, 1996, to the Custodian Agreement, dated
September 1, 1994, between Brown Brothers Harriman & Company and Fidelity
Select Portfolios on behalf of the equity portfolios with the exception of
Cyclical Industries and Natural Resources Portfolios is incorporated herein
by reference to Exhibit 8(e) of Fidelity Securities Fund's Post-Effective
Amendment No. 35 (File No. 2-93601).
(d) Custodian Agreement and Appendix C, dated December 1, 1994,
between The Bank of New York and Fidelity Select Portfolios on behalf of
Select Money Market Portfolio is incorporated herein by reference to
Exhibit 8(a) of Fidelity Hereford Street Trust's Post-Effective Amendment
No. 4 (File No. 33-52577).
(e) Appendix A, dated May 16, 1996, to the Custodian Agreement, dated
December 1, 1994, between The Bank of New York and Fidelity Select
Portfolios on behalf of Select Money Market Portfolio is incorporated
herein by reference to Exhibit 8(e) of Post-Effective Amendment No. 57.
(f) Appendix B, dated July 31, 1996, to the Custodian Agreement, dated
December 1, 1994, between The Bank of New York and Fidelity Select
Portfolios on behalf of Select Money Market Portfolio is incorporated
herein by reference to Exhibit 8(c) of Fidelity Income Fund's
Post-Effective Amendment No. 35 (File No. 2-92661).
(g) Fidelity Group Repo Custodian Agreement among The Bank of New
York, J. P. Morgan Securities, Inc., and Fidelity Select Portfolios on
behalf of all of the portfolios with the exception of Cyclical Industries
and Natural Resources Portfolios, dated February 12, 1996, is incorporated
herein by reference to Exhibit 8(d) of Fidelity Institutional Cash
Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31.
(h) Schedule 1 to the Fidelity Group Repo Custodian Agreement between
The Bank of New York and Fidelity Select Portfolios on behalf of all of the
portfolios with the exception of Cyclical Industries and Natural Resources
Portfolios, dated February 12, 1996, is incorporated herein by reference to
Exhibit 8(e) of Fidelity Institutional Cash Portfolios' (File No. 2-74808)
Post-Effective Amendment No. 31.
(i) Fidelity Group Repo Custodian Agreement among Chemical Bank,
Greenwich Capital Markets, Inc., and Fidelity Select Portfolios on behalf
of all of the portfolios with the exception of Cyclical Industries and
Natural Resources Portfolios, dated November 13, 1995, is incorporated
herein by reference to Exhibit 8(f) of Fidelity Institutional Cash
Portfolios' (File No. 2-74808) Post-Effective Amendment No. 31.
(j) Schedule 1 to the Fidelity Group Repo Custodian Agreement between
Chemical Bank and Fidelity Select Portfolios on behalf of all of the
portfolios with the exception of Cyclical Industries and Natural Resources
Portfolios, dated November 13, 1995, is incorporated herein by reference to
Exhibit 8(g) of Fidelity Institutional Cash Portfolios' (File No. 2-74808)
Post-Effective Amendment No. 31.
(k) Joint Trading Account Custody Agreement between The Bank of New
York and Fidelity Select Portfolios on behalf of all of the portfolios with
the exception of Cyclical Industries and Natural Resources Portfolios,
dated May 11, 1995, is incorporated herein by reference to Exhibit 8(h) of
Fidelity Institutional Cash Portfolios' (File No. 2-74808) Post-Effective
Amendment No. 31.
(l) First Amendment to Joint Trading Account Custody Agreement between
The Bank of New York and Fidelity Select Portfolios on behalf of all of the
portfolios with the exception of Cyclical Industries and Natural Resources
Portfolios, dated July 14, 1995, is incorporated herein by reference to
Exhibit 8(i) of Fidelity Institutional Cash Portfolios' (File No. 2-74808)
Post-Effective Amendment No. 31.
(m) Form of Custodian Agreement and Appendix B and C, between Brown
Brothers Harriman & Company and Fidelity Select Portfolios on behalf of the
Cyclical Industries and Natural Resources Portfolios are incorporated
herein by reference to Exhibit 8(m) of Post-Effective Amendment No. 57.
(n) Forms of Fidelity Group Repo Custodian Agreement and Schedule 1
among The Bank of New York, J. P. Morgan Securities, Inc., and Fidelity
Select Portfolios on behalf of Cyclical Industries and Natural Resources
Portfolios are incorporated herein by reference to Exhibit 8(n) of
Post-Effective Amendment No. 57.
(o) Forms of Fidelity Group Repo Custodian Agreement and Schedule 1
among Chemical Bank, Greenwich Capital Markets, Inc., and Fidelity Select
Portfolios on behalf of Cyclical Industries and Natural Resources
Portfolios are incorporated herein by reference to Exhibit 8(o) of
Post-Effective Amendment No. 57.
(p) Forms of Joint Trading Account Custody Agreement and First
Amendment to Joint Trading Account Custody Agreement between The Bank of
New York and Fidelity Select Portfolios on behalf of Cyclical Industries
and Natural Resources Portfolios are incorporated herein by reference to
Exhibit 8(p) of Post-Effective Amendment No. 57.
(9) Not applicable.
(10) Not applicable.
(11) Consent of Price Waterhouse LLP is filed herein as Exhibit 11.
(12) Not applicable.
(13) Not applicable.
(14)(a) Fidelity Individual Retirement Account Custodial Agreement and
Disclosure Statement, as currently in effect, is incorporated herein by
reference to Exhibit 14(a) of Fidelity Union Street Trust's (File No.
2-50318) Post-Effective Amendment No. 87.
(b) Fidelity Institutional Individual Retirement Account Custodial
Agreement and Disclosure Statement, as currently in effect, is incorporated
herein by reference to Exhibit 14(d) of Fidelity Union Street Trust's (File
No. 2-50318) Post-Effective Amendment No. 87.
(c) National Financial Services Corporation Individual Retirement
Account Custodial Agreement and Disclosure Statement, as currently in
effect, is incorporated herein by reference to Exhibit 14(h) of Fidelity
Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(d) Fidelity Portfolio Advisory Services Individual Retirement
Account Custodial Agreement and Disclosure Statement, as currently in
effect, is incorporated herein by reference to Exhibit 14(i) of Fidelity
Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(e) Fidelity 403(b)(7) Custodial Account Agreement, as currently in
effect, is incorporated herein by reference to Exhibit 14(e) of Fidelity
Union Street Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(f) National Financial Services Corporation Defined Contribution
Retirement Plan and Trust Agreement, as currently in effect, is
incorporated herein by reference to Exhibit 14(k) of Fidelity Union Street
Trust's (File No. 2-50318) Post-Effective Amendment No. 87.
(g) The CORPORATEplan for Retirement Profit Sharing/401K Plan, as
currently in effect, is incorporated herein by reference to Exhibit 14(l)
of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 87.
(h) The CORPORATEplan for Retirement Money Purchase Pension Plan, as
currently in effect, is incorporated herein by reference to Exhibit 14(m)
of Fidelity Union Street Trust's (File No. 2-50318) Post-Effective
Amendment No. 87.
(i) Fidelity Investments Section 403(b)(7) Individual Custodial
Account Agreement and Disclosure Statement, as currently in effect, is
incorporated herein by reference to Exhibit 14(f) of Fidelity Commonwealth
Trust's (File No. 2-52322) Post-Effective Amendment No. 57.
(j) Plymouth Investments Defined Contribution Retirement Plan and
Trust Agreement, as currently in effect, is incorporated herein by
reference to Exhibit 14(o) of Fidelity Commonwealth Trust's (File No.
2-52322) Post-Effective Amendment No. 57.
(k) The Fidelity Prototype Defined Benefit Pension Plan and Trust
Basic Plan Document and Adoption Agreement, as currently in effect, is
incorporated herein by reference to Exhibit 14(d) of Fidelity Securities
Fund's (File No. 2-93601) Post-Effective Amendment No. 33.
(l) The Institutional Prototype Plan Basic Plan Document,
Standardized Adoption Agreement, and Non-Standardized Adoption Agreement,
as currently in effect, is incorporated herein by reference to Exhibit
14(o) of Fidelity Securities Fund's (File No. 2-93601) Post-Effective
Amendment No. 33.
(m) The CORPORATEplan for Retirement 100SM Profit Sharing/401(k)
Basic Plan Document, Standardized Adoption Agreement, and Non-Standardized
Adoption Agreement, as currently in effect, is incorporated herein by
reference to Exhibit 14(f) of Fidelity Securities Fund's (File No. 2-93601)
Post-Effective Amendment No. 33.
(n) The Fidelity Investments 401(a) Prototype Plan for Tax-Exempt
Employers Basic Plan Document, Standardized Profit Sharing Plan Adoption
Agreement, Non-Standardized Discretionary Contribution Plan No. 002
Adoption Agreement, and Non-Standardized Discretionary Contribution Plan
No. 003 Adoption Agreement, as currently in effect, is incorporated herein
by reference to Exhibit 14(g) of Fidelity Securities Fund's (File No.
2-93601) Post-Effective Amendment No. 33.
(o) Fidelity Investments 403(b) Sample Plan Basic Plan Document and
Adoption Agreement, as currently in effect, is incorporated herein by
reference to Exhibit 14(p) of Fidelity Securities Fund's (File No. 2-93601)
Post-Effective Amendment No. 33.
(p) Fidelity Defined Contribution Retirement Plan and Trust
Agreement, as currently in effect, is incorporated herein by reference to
Exhibit 14(c) of Fidelity Securities Fund's (File No. 2-93601)
Post-Effective Amendment No. 33.
(15) Not applicable.
(16)(a) Schedules for the computation of performance calculations and
yield calculations for Select Natural Gas Portfolio and Select Money Market
Portfolio on behalf of the trust were filed as Exhibit 16(a) of
Post-Effective Amendment No. 51.
(b) A schedule for the computation of a moving average for Select
Insurance Portfolio on behalf of the equity portfolios in the trust was
filed as Exhibit 16(b) of Post-Effective Amendment No. 51.
(17) Financial Data Schedules are filed herein as Exhibit 27.
(18) Not applicable.
Item 25. Persons Controlled by or under Common Control with Registrant
The Board of Trustees of the Registrant is substantially the same as the
boards of other funds advised by FMR, each of which has Fidelity Management
& Research Company as its investment adviser. In addition, the officers of
these funds are substantially identical. Nonetheless, the Registrant takes
the position that it is not under common control with these other funds
since the power residing in the respective boards and officers arises as
the result of an official position with the respective funds.
Item 26. Number of Holders of Securities February 28, 1997
Title of Class: Shares of Beneficial Interest
Title of Class Number of Record Holders
Air Transportation Portfolio 4,512
American Gold Portfolio 28,390
Automotive Portfolio 7,064
Biotechnology Portfolio 62,202
Brokerage and Investment Management Portfolio 21,805
Chemicals Portfolio 11,366
Computers Portfolio 50,233
Construction and Housing Portfolio 1,943
Consumer Industries Portfolio 1,834
Cyclical Industries Portfolio 0
Defense and Aerospace Portfolio 6,924
Developing Communications Portfolio 27,882
Electronics Portfolio 115,808
Energy Portfolio 20,311
Energy Service Portfolio 35,034
Environmental Services Portfolio 5,027
Financial Services Portfolio 28,096
Food and Agriculture Portfolio 19,999
Health Care Portfolio 91,861
Home Finance Portfolio 67,167
Industrial Equipment Portfolio 3,996
Industrial Materials Portfolio 7,692
Insurance Portfolio 3,304
Leisure Portfolio 9,027
Medical Delivery Portfolio 16,443
Money Market Portfolio 30,133
Multimedia Portfolio 5,607
Natural Gas Portfolio 9,013
Natural Resources Portfolio 0
Paper and Forest Products Portfolio 2,637
Precious Metals and Minerals Portfolio 28,782
Regional Banks Portfolio 54,421
Retailing Portfolio 5,986
Software and Computer Services Portfolio 38,680
Technology Portfolio 39,811
Telecommunications Portfolio 38,835
Transportation Portfolio 1,143
Utilities Growth Portfolio 18,865
Item 27. Indemnification
Article XI, Section 2 of the Declaration of Trust sets forth the
reasonable and fair means for determining whether indemnification shall be
provided to any past or present Trustee or officer. It states that the
Registrant shall indemnify any present or past Trustee or officer to the
fullest extent permitted by law against liability and all expenses
reasonably incurred by him in connection with any claim, action, suit, or
proceeding in which he is involved by virtue of his service as a Trustee,
an officer, or both. Additionally, amounts paid or incurred in settlement
of such matters are covered by this indemnification. Indemnification will
not be provided in certain circumstances, however. These include instances
of willful misfeasance, bad faith, gross negligence, and reckless disregard
of the duties involved in the conduct of the particular office involved.
Pursuant to Section 11 of the Distribution Agreement, the Registrant
agrees to indemnify and hold harmless the Distributor and each of its
directors and officers and each person, if any, who controls the
Distributor within the meaning of Section 15 of the 1933 Act against any
loss, liability, claim, damages or expense arising by reason of any person
acquiring any shares, based upon the ground that the registration
statement, Prospectus, Statement of Additional Information, shareholder
reports or other information filed or made public by the Registrant
included a materially misleading statement or omission. However, the
Registrant does not agree to indemnify the Distributor or hold it harmless
to the extent that the statement or omission was made in reliance upon, and
in conformity with, information furnished to the Registrant by or on behalf
of the Distributor. The Registrant does not agree to indemnify the parties
against any liability to which they would be subject by reason of willful
misfeasance, bad faith, gross negligence, and reckless disregard of the
obligations and duties under the Distribution Agreement.
Pursuant to the agreement by which Fidelity Service Company, Inc.
("Service") is appointed transfer agent, the Registrant agrees to indemnify
and hold Service harmless against any losses, claims, damages, liabilities
or expenses (including reasonable counsel fees and expenses) resulting
from:
(1) any claim, demand, action or suit brought by any person other than the
Registrant, including by a shareholder, which names the Service and/or the
Registrant as a party and is not based on and does not result from
Service's willful misfeasance, bad faith or negligence or reckless
disregard of duties, and arises out of or in connection with Service's
performance under the Transfer Agency Agreement; or
(2) any claim, demand, action or suit (except to the extent contributed to
by Service's willful misfeasance, bad faith or negligence or reckless
disregard of duties) which results from the negligence of the Registrant,
or from Service's acting upon any instruction(s) reasonably believed by it
to have been executed or communicated by any person duly authorized by the
Registrant, or as a result of Service's acting in reliance upon advice
reasonably believed by Service to have been given by counsel for the
Registrant, or as a result of Service's acting in reliance upon any
instrument or stock certificate reasonably believed by it to have been
genuine and signed, countersigned or executed by the proper person.
Item 28. Business and Other Connections of Investment Adviser
(1) FIDELITY MANAGEMENT & RESEARCH COMPANY (FMR)
FMR serves as investment adviser to a number of other investment
companies. The directors and officers of the Adviser have held, during the
past two fiscal years, the following positions of a substantial nature.
<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman of the Executive Committee of FMR;
President and Chief Executive Officer of FMR Corp.;
Chairman of the Board and Director of FMR, FMR
Corp., FMR Texas Inc., FMR (U.K.) Inc., and FMR
(Far East) Inc.; Chairman of the Board and
Representative Director of Fidelity Investments Japan
Limited; President and Trustee of funds advised by
FMR.
J. Gary Burkhead President and Director of FMR, FMR Texas Inc., FMR
(U.K.) Inc., and FMR (Far East) Inc.; Managing
Director of FMR Corp.; Senior Vice President and
Trustee of funds advised by FMR.
Peter S. Lynch Vice Chairman of the Board and Director of FMR.
Marta Amieva Vice President of FMR.
Dwight D. Churchill Vice President of FMR.
John D. Crumrine Assistant Treasurer of FMR, FMR (U.K.) Inc., FMR
(Far East) Inc., and FMR Texas Inc.; Vice President
and Treasurer of FMR Corp.
William Danoff Vice President of FMR and of a fund advised by FMR.
Scott E. DeSano Vice President of FMR.
Craig P. Dinsell Vice President of FMR.
Penelope Dobkin Vice President of FMR and of a fund advised by FMR.
George C. Domolky Vice President of FMR.
Larry A. Domash Vice President of FMR.
Bettina Doulton Vice President of FMR and of funds advised by FMR.
Margaret L. Eagle Vice President of FMR and a fund advised by FMR.
Richard B. Fentin Senior Vice President of FMR and Vice President of a
fund advised by FMR.
Gregory Fraser Vice President of FMR and of a fund advised by FMR.
Jay Freedman Assistant Clerk of FMR; Clerk of FMR Corp., FMR
(U.K.) Inc., and FMR (Far East) Inc.; Secretary of
FMR Texas Inc.
Robert Gervis Vice President of FMR.
David L. Glancy Vice President of FMR and of a fund advised by FMR.
Kevin E. Grant Vice President of FMR and of funds advised by FMR.
Barry A. Greenfield Vice President of FMR and of a fund advised by FMR.
Boyce I. Greer Vice President of FMR.
Bart Grenier Vice President of FMR.
Robert Haber Vice President of FMR.
Richard C. Habermann Senior Vice President of FMR; Vice President of funds
advised by FMR.
William J. Hayes Senior Vice President of FMR; Vice President of
Equity funds advised by FMR.
Richard Hazlewood Vice President of FMR and of a fund advised by FMR.
Fred L. Henning Jr. Senior Vice President of FMR; Vice President of
Fixed-Income funds advised by FMR.
John R. Hickling Vice President of FMR and of a fund advised by FMR.
Robert F. Hill Vice President of FMR; Director of Technical
Research.
Curt Hollingsworth Vice President of FMR and of funds advised by FMR.
Abigail P. Johnson Vice President of FMR and of a fund advised by FMR.
Stephen P. Jonas Vice President of FMR; Treasurer of FMR, FMR
(U.K.) Inc., FMR (Far East) Inc., and FMR Texas Inc.
David B. Jones Vice President of FMR.
Steven Kaye Vice President of FMR and of a fund advised by FMR.
Francis V. Knox Vice President of FMR; Compliance Officer of FMR
(U.K.) Inc.
David P. Kurrasch Vice President of FMR.
Robert A. Lawrence Senior Vice President of FMR; Vice President of High
Income funds advised by FMR.
Alan Leifer Vice President of FMR.
Harris Leviton Vice President of FMR and of a fund advised by FMR.
Bradford E. Lewis Vice President of FMR and of funds advised by FMR.
Arthur S. Loring Senior Vice President, Clerk, and General Counsel of
FMR; Vice President/Legal, and Assistant Clerk of
FMR Corp.; Secretary of funds advised by FMR.
Richard R. Mace Jr. Vice President of FMR and of funds advised by FMR.
Malcolm W. MacNaught II Vice President of FMR and of a fund advised by FMR.
Robert H. Morrison Vice President of FMR; Director of Equity Trading.
David L. Murphy Vice President of FMR and of funds advised by FMR.
Jacques Perold Vice President of FMR.
Anne Punzak Vice President of FMR.
Kenneth A. Rathgeber Vice President of FMR; Treasurer of funds advised by
FMR.
Lee H. Sandwen Vice President of FMR.
Patricia A. Satterthwaite Vice President of FMR and of a fund advised by FMR.
Thomas T. Soviero Vice President of FMR and of a fund advised by FMR.
Richard Spillane Vice President of FMR; Senior Vice President and
Director of Operations and Compliance of FMR (U.K.)
Inc.
Robert E. Stansky Senior Vice President of FMR; Vice President of a
fund advised by FMR.
Thomas Sweeney Vice President of FMR and of a fund advised by FMR.
Beth F. Terrana Senior Vice President of FMR; Vice President of a
fund advised by FMR.
Yoko Tilley Vice President of FMR.
Joel C. Tillinghast Vice President of FMR and of a fund advised by FMR.
Robert Tuckett Vice President of FMR.
Jennifer Uhrig Vice President of FMR and of funds advised by FMR.
George A. Vanderheiden Senior Vice President of FMR; Vice President of funds
advised by FMR.
</TABLE>
(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.)
Pembroke Hall, 42 Crow Lane, Pembroke, Bermuda
FMR U.K. provides investment advisory services to Fidelity Management &
Research Company and Fidelity Management Trust Company. The directors and
officers of the Sub-Adviser have held the following positions of a
substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman of the Board and Director of FMR U.K.,
FMR, FMR Corp., FMR Texas Inc., and FMR (Far
East) Inc.; Chairman of the Executive Committee of
FMR; President and Chief Executive Officer of FMR
Corp.; Chairman of the Board and Representative
Director of Fidelity Investments Japan Limited;
President and Trustee of funds advised by FMR.
J. Gary Burkhead President and Director of FMR U.K., FMR, FMR (Far
East) Inc., and FMR Texas Inc.; Managing Director of
FMR Corp.; Senior Vice President and Trustee of
funds advised by FMR.
Richard Spillane Senior Vice President and Director of Operations and
Compliance of FMR U.K.; Vice President of FMR.
Stephen P. Jonas Treasurer of FMR U.K., FMR, FMR (Far East) Inc.,
and FMR Texas Inc.; Vice President of FMR.
John D. Crumrine Assistant Treasurer of FMR U.K., FMR, FMR (Far
East) Inc., and FMR Texas Inc.; Vice President and
Treasurer of FMR Corp.
Francis V. Knox Compliance Officer of FMR U.K.; Vice President of
FMR.
Jay Freedman Clerk of FMR U.K., FMR (Far East) Inc., and FMR
Corp.; Assistant Clerk of FMR; Secretary of FMR
Texas Inc.
(3) FIDELITY MANAGEMENT & RESEARCH COMPANY (FAR EAST) INC. (FMR FAR EAST)
Shiroyama JT Mori Bldg., 4-3-1 Toranomon Minato-ku, Tokyo 105, Japan
FMR Far East provides investment advisory services to Fidelity Management
& Research Company and Fidelity Management Trust Company. The directors
and officers of the Sub-Adviser have held the following positions of a
substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman of the Board and Director of FMR Far
East, FMR, FMR Corp., FMR Texas Inc., and
FMR (U.K.) Inc.; Chairman of the Executive
Committee of FMR; President and Chief
Executive Officer of FMR Corp.; Chairman of
the Board and Representative Director of
Fidelity Investments Japan Limited; President
and Trustee of funds advised by FMR.
J. Gary Burkhead President and Director of FMR Far East, FMR
Texas Inc., FMR, and FMR (U.K.) Inc.;
Managing Director of FMR Corp.; Senior Vice
President and Trustee of funds advised by FMR.
William R. Ebsworth Vice President of FMR Far East; Director of
FIIA.
Bill Wilder Vice President of FMR Far East; President and
Representative Director of Fidelity Investments
Japan Limited.
Stephen P. Jonas Treasurer of FMR Far East, FMR, FMR (U.K.)
Inc., and FMR Texas Inc.; Vice President of
FMR.
John D. Crumrine Assistant Treasurer of FMR Far East, FMR,
FMR (U.K.) Inc., and FMR Texas Inc.; Vice
President and Treasurer of FMR Corp.
Jay Freedman Clerk of FMR Far East, FMR (U.K.) Inc., and
FMR Corp.; Assistant Clerk of FMR; Secretary
of FMR Texas Inc.
(4) FMR TEXAS INC. (FMR Texas)
FMR Texas provides investment advisory services to Fidelity Management &
Research Company. The directors and officers of the Sub-Adviser have held
the following positions of a substantial nature during the past two fiscal
years.
Edward C. Johnson 3d Chairman of the Board and Director of FMR
Texas, FMR, FMR Corp., FMR (Far East) Inc.,
and FMR (U.K.) Inc.; Chairman of the
Executive Committee of FMR; President and
Chief Executive Officer of FMR Corp.;
Chairman of the Board and Representative
Director of Fidelity Investments Japan Limited;
President and Trustee of funds advised by FMR.
J. Gary Burkhead President and Director of FMR Texas, FMR,
FMR (Far East) Inc., and FMR (U.K.) Inc.;
Managing Director of FMR Corp.; Senior Vice
President and Trustee of funds advised by FMR.
Robert H. Auld Vice President of FMR Texas.
Leland C. Barron Vice President of FMR Texas and of funds
advised by FMR.
Robert K. Duby Vice President of FMR Texas and of funds
advised by FMR.
Robert Litterst Vice President of FMR Texas and of funds
advised by FMR.
Thomas D. Maher Vice President of FMR Texas and Assistant Vice
President of Money Market funds advised by
FMR.
Scott A. Orr Vice President of FMR Texas and of funds
advised by FMR.
Burnell R. Stehman Vice President of FMR Texas and of funds
advised by FMR.
John J. Todd Vice President of FMR Texas and of funds
advised by FMR.
Sarah H. Zenoble Vice President of FMR Texas and of Money
Market funds advised by FMR.
Stephen P. Jonas Treasurer of FMR Texas, FMR (U.K.) Inc.,
FMR (Far East) Inc., and FMR; Vice President
of FMR.
John D. Crumrine Assistant Treasurer of FMR Texas, FMR (U.K.)
Inc., FMR (Far East) Inc., and FMR; Vice
President and Treasurer of FMR Corp.
Jay Freedman Secretary of FMR Texas; Clerk of FMR (U.K.)
Inc., FMR (Far East) Inc., and FMR Corp.;
Assistant Clerk of FMR.
Item 29. Principal Underwriters
(a) Fidelity Distributors Corporation (FDC) acts as distributor for most
funds advised by FMR.
(b)
Name and Principal Positions and Offices Positions and Offices
Business Address* With Underwriter With Registrant
Edward C. Johnson 3d Director Trustee and President
Michael Mlinac Director None
Mark Peterson Director None
Paul Hondros President None
Arthur S. Loring Vice President and Clerk Secretary
Caron Ketchum Treasurer and Controller None
Gary Greenstein Assistant Treasurer None
Jay Freedman Assistant Clerk None
Linda Holland Compliance Officer None
* 82 Devonshire Street, Boston, MA
(c) Not applicable.
Item 30. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by
Section 31a of the 1940 Act and the Rules promulgated thereunder are
maintained by Fidelity Management & Research Company or Fidelity Service
Company, Inc., 82 Devonshire Street, Boston, MA 02109, or the funds'
respective custodians The Bank of New York, 110 Washington Street, New
York, N.Y. and Brown Brothers Harriman & Co., 40 Water Street, Boston, MA.
Item 31. Management Services
Not applicable.
Item 32. Undertakings
(a) The Registrant undertakes to file a Post-Effective Amendment, using
financial statements for Cyclical Industries Portfolio and Natural
Resources Portfolio, which need not be certified, within six months of the
funds' effectiveness, unless permitted by the SEC to extend this period.
(b) The Registrant undertakes for Natural Gas Portfolio, Cyclical
Industries Portfolio, and Natural Resources Portfolio: 1) to call a
meeting of shareholders for the purpose of voting upon the questions of
removal of a trustee or trustees, when requested to do so by record holders
of not less than 10% of its outstanding shares; and 2) to assist in
communications with other shareholders pursuant to Section 16(c)(1) and
(2), whenever shareholders meeting the qualifications set forth in Section
16(c) seek the opportunity to communicate with other shareholders with a
view toward requesting a meeting.
(c) The Registrant, on behalf of Fidelity Select Portfolios, provided the
information required for the stock funds by Item 5A is contained in the
annual report, undertakes to furnish to each person to whom a prospectus
has been delivered, upon their request and without charge, a copy of the
Registrant's latest annual report to shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all
of the requirements for the effectiveness of this Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Post-Effective Amendment No. 59 to the Registration Statement
to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Boston, and Commonwealth of Massachusetts, on the 22nd day
of April 1997.
FIDELITY SELECT PORTFOLIOS
By /s/Edward C. Johnson 3d (dagger)
Edward C. Johnson 3d, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities and on the dates indicated.
(Signature) (Title) (Date)
<TABLE>
<CAPTION>
<S> <C> <C>
/s/Edward C. Johnson 3d (dagger) President and Trustee April 22, 1997
Edward C. Johnson 3d (Principal Executive Officer)
/s/Kenneth A. Rathgeber * Treasurer April 22, 1997
Kenneth A. Rathgeber
/s/J. Gary Burkhead Trustee April 22, 1997
J. Gary Burkhead
/s/Ralph F. Cox ** Trustee April 22, 1997
Ralph F. Cox
/s/Phyllis Burke Davis ** Trustee April 22, 1997
Phyllis Burke Davis
/s/Robert M. Gates *** Trustee April 22, 1997
Robert M. Gates
/s/E. Bradley Jones ** Trustee April 22, 1997
E. Bradley Jones
/s/Donald J. Kirk ** Trustee April 22, 1997
Donald J. Kirk
/s/Peter S. Lynch ** Trustee April 22, 1997
Peter S. Lynch
/s/Marvin L. Mann ** Trustee April 22, 1997
Marvin L. Mann
/s/William O. McCoy ** Trustee April 22, 1997
William O. McCoy
/s/Gerald C. McDonough ** Trustee April 22, 1997
Gerald C. McDonough
/s/Thomas R. Williams ** Trustee April 22, 1997
Thomas R. Williams
</TABLE>
(dagger) Signatures affixed by J. Gary Burkhead pursuant to a power of
attorney dated January 3, 1997 and filed herewith.
* Signature affixed by John H. Costello pursuant to a power of attorney
dated December 19, 1996 and filed herewith.
** Signature affixed by Robert C. Hacker pursuant to a power of attorney
dated December 19, 1996 and filed herewith.
*** Signature affixed by Robert C. Hacker pursuant to a power of attorney
dated March 6, 1997 and filed herewith.
POWER OF ATTORNEY
I, the undersigned President and Director, Trustee, or General Partner, as
the case may be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Plans Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Destiny Portfolios Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Union Street Trust
Fidelity Devonshire Trust Fidelity Union Street Trust II
Fidelity Exchange Fund Fidelity Yen Performance Portfolio, L.P.
Fidelity Financial Trust Variable Insurance Products Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund II
</TABLE>
plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as President and Director, Trustee, or
General Partner (collectively, the "Funds"), hereby constitute and appoint
J. Gary Burkhead my true and lawful attorney-in-fact, with full power of
substitution, and with full power to him to sign for me and in my name in
the appropriate capacity, all Registration Statements of the Funds on Form
N-1A, Form N-8A, Form N-8B-2, or any successor thereto, any and all
subsequent Amendments, Pre-Effective Amendments, or Post-Effective
Amendments to said Registration Statements on Form N-1A or any successor
thereto, any Registration Statements on Form N-14, and any supplements or
other instruments in connection therewith, and generally to do all such
things in my name and behalf in connection therewith as said
attorney-in-fact deems necessary or appropriate, to comply with the
provisions of the Securities Act of 1933 and the Investment Company Act of
1940, and all related requirements of the Securities and Exchange
Commission. I hereby ratify and confirm all that said attorney-in-fact or
his substitutes may do or cause to be done by virtue hereof. This power of
attorney is effective for all documents filed on or after January 3, 1997.
WITNESS my hand on the date set forth below.
/s/Edward C. Johnson 3d January 3, 1997
Edward C. Johnson 3d
POWER OF ATTORNEY
I, the undersigned Treasurer and principal financial and accounting
officer of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II
</TABLE>
plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as President and Director, Trustee, or
General Partner (collectively, the "Funds"), hereby constitute and appoint
John H. Costello and John E. Ferris each of them singly my true and lawful
attorneys-in-fact, with full power of substitution, and with full power to
each of them to sign for me and in my name in the appropriate capacity, all
Registration Statements of the Funds on Form N-1A, Form N-8A or any
successor thereto, any and all subsequent Amendments, Pre-Effective
Amendments, or Post-Effective Amendments to said Registration Statements on
Form N-1A or any successor thereto, any Registration Statements on Form
N-14, and any supplements or other instruments in connection therewith, and
generally to do all such things in my name and behalf in connection
therewith as said attorneys-in-fact deems necessary or appropriate, to
comply with the provisions of the Securities Act of 1933 and the Investment
Company Act of 1940, and all related requirements of the Securities and
Exchange Commission. I hereby ratify and confirm all that said
attorneys-in-fact or their substitutes may do or cause to be done by virtue
hereof. This power of attorney is effective for all documents filed on or
after January 1, 1997.
WITNESS my hand on the date set forth below.
/s/Kenneth A. Rathgeber__________ December 19, 1996
Kenneth A. Rathgeber
POWER OF ATTORNEY
We, the undersigned Directors, Trustees, or General Partners, as the case
may be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II
</TABLE>
plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as Directors, Trustees, or General Partners
(collectively, the "Funds"), hereby constitute and appoint Arthur J. Brown,
Arthur C. Delibert, Stephanie A. Djinis, Robert C. Hacker, Thomas M.
Leahey, Richard M. Phillips, and Dana L. Platt, each of them singly, our
true and lawful attorneys-in-fact, with full power of substitution, and
with full power to each of them, to sign for us and in our names in the
appropriate capacities, all Registration Statements of the Funds on Form
N-1A, Form N-8A or any successor thereto, any and all subsequent
Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said
Registration Statements on Form N-1A or any successor thereto, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
our names and behalf in connection therewith as said attorneys-in-fact
deems necessary or appropriate, to comply with the provisions of the
Securities Act of 1933 and the Investment Company Act of 1940, and all
related requirements of the Securities and Exchange Commission. I hereby
ratify and confirm all that said attorneys-in-fact or their substitutes may
do or cause to be done by virtue hereof. This power of attorney is
effective for all documents filed on or after January 1, 1997.
WITNESS our hands on this nineteenth day of December, 1996.
/s/Edward C. Johnson 3d___________ /s/Peter S. Lynch________________
Edward C. Johnson 3d Peter S. Lynch
/s/J. Gary Burkhead_______________ /s/William O. McCoy______________
J. Gary Burkhead William O. McCoy
/s/Ralph F. Cox __________________ /s/Gerald C. McDonough___________
Ralph F. Cox Gerald C. McDonough
/s/Phyllis Burke Davis_____________ /s/Marvin L. Mann________________
Phyllis Burke Davis Marvin L. Mann
/s/E. Bradley Jones________________ /s/Thomas R. Williams ____________
E. Bradley Jones Thomas R. Williams
/s/Donald J. Kirk __________________
Donald J. Kirk
POWER OF ATTORNEY
I, the undersigned Director, Trustee, or General Partner, as the case may
be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Aberdeen Street Trust Fidelity Government Securities Fund
Fidelity Advisor Annuity Fund Fidelity Hastings Street Trust
Fidelity Advisor Series I Fidelity Hereford Street Trust
Fidelity Advisor Series II Fidelity Income Fund
Fidelity Advisor Series III Fidelity Institutional Cash Portfolios
Fidelity Advisor Series IV Fidelity Institutional Tax-Exempt Cash Portfolios
Fidelity Advisor Series V Fidelity Institutional Trust
Fidelity Advisor Series VI Fidelity Investment Trust
Fidelity Advisor Series VII Fidelity Magellan Fund
Fidelity Advisor Series VIII Fidelity Massachusetts Municipal Trust
Fidelity Beacon Street Trust Fidelity Money Market Trust
Fidelity Boston Street Trust Fidelity Mt. Vernon Street Trust
Fidelity California Municipal Trust Fidelity Municipal Trust
Fidelity California Municipal Trust II Fidelity Municipal Trust II
Fidelity Capital Trust Fidelity New York Municipal Trust
Fidelity Charles Street Trust Fidelity New York Municipal Trust II
Fidelity Commonwealth Trust Fidelity Phillips Street Trust
Fidelity Congress Street Fund Fidelity Puritan Trust
Fidelity Contrafund Fidelity Revere Street Trust
Fidelity Corporate Trust Fidelity School Street Trust
Fidelity Court Street Trust Fidelity Securities Fund
Fidelity Court Street Trust II Fidelity Select Portfolios
Fidelity Covington Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Daily Money Fund Fidelity Summer Street Trust
Fidelity Daily Tax-Exempt Fund Fidelity Trend Fund
Fidelity Destiny Portfolios Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity U.S. Investments-Government Securities
Portfolio, L.P. Fund, L.P.
Fidelity Devonshire Trust Fidelity Union Street Trust
Fidelity Exchange Fund Fidelity Union Street Trust II
Fidelity Financial Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Variable Insurance Products Fund II
</TABLE>
plus any other investment company for which Fidelity Management & Research
Company or an affiliate acts as investment adviser and for which the
undersigned individual serves as Director, Trustee, or General Partner
(collectively, the "Funds"), hereby constitute and appoint Arthur J. Brown,
Arthur C. Delibert, Stephanie A. Djinis, Robert C. Hacker, Thomas M.
Leahey, Richard M. Phillips, and Dana L. Platt, each of them singly, my
true and lawful attorneys-in-fact, with full power of substitution, and
with full power to each of them, to sign for me and in my name in the
appropriate capacities, all Registration Statements of the Funds on Form
N-1A, Form N-8A or any successor thereto, any and all subsequent
Amendments, Pre-Effective Amendments, or Post-Effective Amendments to said
Registration Statements on Form N-1A or any successor thereto, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
my name and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and the Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission. I hereby ratify
and confirm all that said attorneys-in-fact or their substitutes may do or
cause to be done by virtue hereof. This power of attorney is effective for
all documents filed on or after March 1, 1997.
WITNESS my hand on the date set forth below.
/s/Robert M. Gates March 6, 1997
Robert M. Gates
Exhibit 5(f)
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY MANAGEMENT & RESEARCH COMPANY
AND
FIDELITY MANAGEMENT & RESEARCH (U.K.) INC.
AND
FIDELITY SELECT PORTFOLIOS ON BEHALF OF CYCLICAL INDUSTRIES PORTFOLIO
AGREEMENT made this 16th day of January, 1997, by and between Fidelity
Management & Research Company, a Massachusetts corporation with principal
offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called
the "Advisor"); Fidelity Management & Research (U.K.) Inc. (hereinafter
called the "Sub-Advisor"); and Fidelity Select Portfolios, a Massachusetts
business trust which may issue one or more series of shares of beneficial
interest (hereinafter called the "Trust") on behalf of Cyclical Industries
Portfolio (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract
on behalf of the Portfolio, pursuant to which the Advisor is to act as
investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons
have personnel in various locations throughout the world and have been
formed in part for the purpose of researching and compiling information and
recommendations with respect to the economies of various countries, and
securities of issuers located in such countries, and providing investment
advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises
hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as
follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor
to perform one or more of the following services with respect to all or a
portion of the investments of the Portfolio. The services and the portion
of the investments of the Portfolio to be advised or managed by the
Sub-Advisor shall be as agreed upon from time to time by the Advisor and
the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all
personnel of the Sub-Advisor performing services for the Portfolio relating
to research, statistical and investment activities.
(a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the
Sub-Advisor shall provide investment advice to the Portfolio and the
Advisor with respect to all or a portion of the investments of the
Portfolio, and in connection with such advice shall furnish the Portfolio
and the Advisor such factual information, research reports and investment
recommendations as the Advisor may reasonably require. Such information
may include written and oral reports and analyses.
(b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor,
the Sub-Advisor shall, subject to the supervision of the Advisor, manage
all or a portion of the investments of the Portfolio in accordance with the
investment objective, policies and limitations provided in the Portfolio's
Prospectus or other governing instruments, as amended from time to time,
the Investment Company Act of 1940 (the "1940 Act") and rules thereunder,
as amended from time to time, and such other limitations as the Trust or
Advisor may impose with respect to the Portfolio by notice to the
Sub-Advisor. With respect to the portion of the investments of the
Portfolio under its management, the Sub-Advisor is authorized to make
investment decisions on behalf of the Portfolio with regard to any stock,
bond, other security or investment instrument, and to place orders for the
purchase and sale of such securities through such broker-dealers as the
Sub-Advisor may select. The Sub-Advisor may also be authorized, but only
to the extent such duties are delegated in writing by the Advisor, to
provide additional investment management services to the Portfolio,
including but not limited to services such as managing foreign currency
investments, purchasing and selling or writing futures and options
contracts, borrowing money or lending securities on behalf of the
Portfolio. All investment management and any other activities of the
Sub-Advisor shall at all times be subject to the control and direction of
the Advisor and the Trust's Board of Trustees.
(c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all
of the services contemplated by this Agreement directly or through such of
its subsidiaries or other affiliated persons as the Sub-Advisor shall
determine; provided, however, that performance of such services through
such subsidiaries or other affiliated persons shall have been approved by
the Trust to the extent required pursuant to the 1940 Act and rules
thereunder.
2. Information to be Provided to the Trust and the Advisor: The
Sub-Advisor shall furnish such reports, evaluations, information or
analyses to the Trust and the Advisor as the Trust's Board of Trustees or
the Advisor may reasonably request from time to time, or as the Sub-Advisor
may deem to be desirable.
3. Brokerage: In connection with the services provided under
subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall
place all orders for the purchase and sale of portfolio securities for the
Portfolio's account with brokers or dealers selected by the Sub-Advisor,
which may include brokers or dealers affiliated with the Advisor or
Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute
portfolio transactions at prices which are advantageous to the Portfolio
and at commission rates which are reasonable in relation to the benefits
received. In selecting brokers or dealers qualified to execute a
particular transaction, brokers or dealers may be selected who also provide
brokerage and research services (as those terms are defined in Section
28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to
the other accounts over which the Sub-Advisor or Advisor exercise
investment discretion. The Sub-Advisor is authorized to pay a broker or
dealer who provides such brokerage and research services a commission for
executing a portfolio transaction for the Portfolio which is in excess of
the amount of commission another broker or dealer would have charged for
effecting that transaction if the Sub-Advisor determines in good faith that
such amount of commission is reasonable in relation to the value of the
brokerage and research services provided by such broker or dealer. This
determination may be viewed in terms of either that particular transaction
or the overall responsibilities which the Sub-Advisor has with respect to
accounts over which it exercises investment discretion. The Trustees of
the Trust shall periodically review the commissions paid by the Portfolio
to determine if the commissions paid over representative periods of time
were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the
following basis for the services to be furnished hereunder.
(a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a)
of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor
a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 110% of
the Sub-Advisor's costs incurred in connection with rendering the services
referred to in subparagraph (a) of paragraph 1 of this Agreement. The
Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or
fee waivers by the Advisor, if any, in effect from time to time.
(b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph
(b) of paragraph 1 of this Agreement, the Advisor agrees to pay the
Sub-Advisor a monthly Investment Management Fee. The Investment Management
Fee shall be equal to: (i) 50% of the monthly management fee rate
(including performance adjustments, if any) that the Portfolio is obligated
to pay the Advisor under its Management Contract with the Advisor,
multiplied by: (ii) the fraction equal to the net assets of the Portfolio
as to which the Sub-Advisor shall have provided investment management
services divided by the net assets of the Portfolio for that month. If in
any fiscal year the aggregate expenses of the Portfolio exceed any
applicable expense limitation imposed by any state or federal securities
laws or regulations, and the Advisor waives all or a portion of its
management fee or reimburses the Portfolio for expenses to the extent
required to satisfy such limitation, the Investment Management Fee paid to
the Sub-Advisor will be reduced by 50% of the amount of such waivers or
reimbursements multiplied by the fraction determined in (ii). If the
Sub-Advisor reduces its fees to reflect such waivers or reimbursements and
the Advisor subsequently recovers all or any portion of such waivers or
reimbursements, then the Sub-Advisor shall be entitled to receive from the
Advisor a proportionate share of the amount recovered. To the extent that
waivers and reimbursements by the Advisor required by such limitations are
in excess of the Advisor's management fee, the Investment Management Fee
paid to the Sub-Advisor will be reduced to zero for that month, but in no
event shall the Sub-Advisor be required to reimburse the Advisor for all or
a portion of such excess reimbursements.
(c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have
provided both investment advisory services under subparagraph (a) and
investment management services under subparagraph (b) of paragraph (1) for
the same portion of the investments of the Portfolio for the same period,
the fees paid to the Sub-Advisor with respect to such investments shall be
calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its
expenses other than those expressly stated to be payable by the Sub-Advisor
hereunder or by the Advisor under the Management Contract with the
Portfolio, which expenses payable by the Portfolio shall include, without
limitation, (i) interest and taxes; (ii) brokerage commissions and other
costs in connection with the purchase or sale of securities and other
investment instruments; (iii) fees and expenses of the Trust's Trustees
other than those who are "interested persons" of the Trust, the Sub-Advisor
or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and
transfer agent fees and expenses; (vi) fees and expenses related to the
registration and qualification of the Trust and the Portfolio's shares for
distribution under state and federal securities laws; (vii) expenses of
printing and mailing reports and notices and proxy material to shareholders
of the Portfolio; (viii) all other expenses incidental to holding meetings
of the Portfolio's shareholders, including proxy solicitations therefore;
(ix) a pro rata share, based on relative net assets of the Portfolio and
other registered investment companies having Advisory and Service or
Management Contracts with the Advisor, of 50% of insurance premiums for
fidelity and other coverage; (x) its proportionate share of association
membership dues; (xi) expenses of typesetting for printing Prospectuses and
Statements of Additional Information and supplements thereto; (xii)
expenses of printing and mailing Prospectuses and Statements of Additional
Information and supplements thereto sent to existing shareholders; and
(xiii) such non-recurring or extraordinary expenses as may arise, including
those relating to actions, suits or proceedings to which the Portfolio is a
party and the legal obligation which the Portfolio may have to indemnify
the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and
shareholders of the Trust are or may be or become interested in the Advisor
or the Sub-Advisor as directors, officers or otherwise and that directors,
officers and stockholders of the Advisor or the Sub-Advisor are or may be
or become similarly interested in the Trust, and that the Advisor or the
Sub-Advisor may be or become interested in the Trust as a shareholder or
otherwise.
7. Services to Other Companies or Accounts: The services of the
Sub-Advisor to the Advisor are not to be deemed to be exclusive, the
Sub-Advisor being free to render services to others and engage in other
activities, provided, however, that such other services and activities do
not, during the term of this Agreement, interfere, in a material manner,
with the Sub-Advisor's ability to meet all of its obligations hereunder.
The Sub-Advisor shall for all purposes be an independent contractor and not
an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard of obligations or duties hereunder
on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to
liability to the Advisor, the Trust or to any shareholder of the Portfolio
for any act or omission in the course of, or connected with, rendering
services hereunder or for any losses that may be sustained in the purchase,
holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this
paragraph 9, this Agreement shall continue in force until July 31, 1997 and
indefinitely thereafter, but only so long as the continuance after such
period shall be specifically approved at least annually by vote of the
Trust's Board of Trustees or by vote of a majority of the outstanding
voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the
Sub-Advisor and the Portfolio, such consent on the part of the Portfolio to
be authorized by vote of a majority of the outstanding voting securities of
the Portfolio.
(c) In addition to the requirements of subparagraphs (a) and (b) of this
paragraph 9, the terms of any continuance or modification of this Agreement
must have been approved by the vote of a majority of those Trustees of the
Trust who are not parties to this Agreement or interested persons of any
such party, cast in person at a meeting called for the purpose of voting on
such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time
on sixty (60) days' prior written notice to the other parties, terminate
this Agreement, without payment of any penalty, by action of its Board of
Trustees or Directors, or with respect to the Portfolio by vote of a
majority of its outstanding voting securities. This Agreement shall
terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on
notice of the limitation of shareholder liability as set forth in the
Declaration of Trust or other organizational document of the Trust and
agrees that any obligations of the Trust or the Portfolio arising in
connection with this Agreement shall be limited in all cases to the
Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction
of any such obligation from the shareholders or any shareholder of the
Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such
obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed
in accordance with, the laws of the Commonwealth of Massachusetts, without
giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the
outstanding voting securities," "assignment," and "interested persons,"
when used herein, shall have the respective meanings specified in the 1940
Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be
signed in their behalf by their respective officers thereunto duly
authorized, and their respective seals to be hereunto affixed, all as of
the date written above.
FIDELITY MANAGEMENT & RESEARCH (U.K.) INC.
BY: /s/ Stephen P. Jonas
Stephen P. Jonas
Treasurer
FIDELITY MANAGEMENT & RESEARCH COMPANY
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
President
FIDELITY SELECT PORTFOLIOS on behalf of
Cyclical Industries Portfolio
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
Senior Vice President
Exhibit 5(g)
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY MANAGEMENT & RESEARCH COMPANY
AND
FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC.
AND
FIDELITY SELECT PORTFOLIOS ON BEHALF OF CYCLICAL INDUSTRIES PORTFOLIO
AGREEMENT made this 16th day of January, 1997, by and between Fidelity
Management & Research Company, a Massachusetts corporation with principal
offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called
the "Advisor"); Fidelity Management & Research (Far East) Inc. (hereinafter
called the "Sub-Advisor"); and Fidelity Select Portfolios, a Massachusetts
business trust which may issue one or more series of shares of beneficial
interest (hereinafter called the "Trust") on behalf of Cyclical Industries
Portfolio (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract
on behalf of the Portfolio, pursuant to which the Advisor is to act as
investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons
have personnel in various locations throughout the world and have been
formed in part for the purpose of researching and compiling information and
recommendations with respect to the economies of various countries, and
securities of issuers located in such countries, and providing investment
advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises
hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as
follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor
to perform one or more of the following services with respect to all or a
portion of the investments of the Portfolio. The services and the portion
of the investments of the Portfolio to be advised or managed by the
Sub-Advisor shall be as agreed upon from time to time by the Advisor and
the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all
personnel of the Sub-Advisor performing services for the Portfolio relating
to research, statistical and investment activities.
(a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the
Sub-Advisor shall provide investment advice to the Portfolio and the
Advisor with respect to all or a portion of the investments of the
Portfolio, and in connection with such advice shall furnish the Portfolio
and the Advisor such factual information, research reports and investment
recommendations as the Advisor may reasonably require. Such information
may include written and oral reports and analyses.
(b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor,
the Sub-Advisor shall, subject to the supervision of the Advisor, manage
all or a portion of the investments of the Portfolio in accordance with the
investment objective, policies and limitations provided in the Portfolio's
Prospectus or other governing instruments, as amended from time to time,
the Investment Company Act of 1940 (the "1940 Act") and rules thereunder,
as amended from time to time, and such other limitations as the Trust or
Advisor may impose with respect to the Portfolio by notice to the
Sub-Advisor. With respect to the portion of the investments of the
Portfolio under its management, the Sub-Advisor is authorized to make
investment decisions on behalf of the Portfolio with regard to any stock,
bond, other security or investment instrument, and to place orders for the
purchase and sale of such securities through such broker-dealers as the
Sub-Advisor may select. The Sub-Advisor may also be authorized, but only
to the extent such duties are delegated in writing by the Advisor, to
provide additional investment management services to the Portfolio,
including but not limited to services such as managing foreign currency
investments, purchasing and selling or writing futures and options
contracts, borrowing money, or lending securities on behalf of the
Portfolio. All investment management and any other activities of the
Sub-Advisor shall at all times be subject to the control and direction of
the Advisor and the Trust's Board of Trustees.
(c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all
of the services contemplated by this Agreement directly or through such of
its subsidiaries or other affiliated persons as the Sub-Advisor shall
determine; provided, however, that performance of such services through
such subsidiaries or other affiliated persons shall have been approved by
the Trust to the extent required pursuant to the 1940 Act and rules
thereunder.
2. Information to be Provided to the Trust and the Advisor: The
Sub-Advisor shall furnish such reports, evaluations, information or
analyses to the Trust and the Advisor as the Trust's Board of Trustees or
the Advisor may reasonably request from time to time, or as the Sub-Advisor
may deem to be desirable.
3. Brokerage: In connection with the services provided under
subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall
place all orders for the purchase and sale of portfolio securities for the
Portfolio's account with brokers or dealers selected by the Sub-Advisor,
which may include brokers or dealers affiliated with the Advisor or
Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute
portfolio transactions at prices which are advantageous to the Portfolio
and at commission rates which are reasonable in relation to the benefits
received. In selecting brokers or dealers qualified to execute a
particular transaction, brokers or dealers may be selected who also provide
brokerage and research services (as those terms are defined in Section
28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to
the other accounts over which the Sub-Advisor or Advisor exercise
investment discretion. The Sub-Advisor is authorized to pay a broker or
dealer who provides such brokerage and research services a commission for
executing a portfolio transaction for the Portfolio which is in excess of
the amount of commission another broker or dealer would have charged for
effecting that transaction if the Sub-Advisor determines in good faith that
such amount of commission is reasonable in relation to the value of the
brokerage and research services provided by such broker or dealer. This
determination may be viewed in terms of either that particular transaction
or the overall responsibilities which the Sub-Advisor has with respect to
accounts over which it exercises investment discretion. The Trustees of
the Trust shall periodically review the commissions paid by the Portfolio
to determine if the commissions paid over representative periods of time
were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the
following basis for the services to be furnished hereunder.
(a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a)
of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor
a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 105% of
the Sub-Advisor's costs incurred in connection with rendering the services
referred to in subparagraph (a) of paragraph 1 of this Agreement. The
Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or
fee waivers by the Advisor, if any, in effect from time to time.
(b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph
(b) of paragraph 1 of this Agreement, the Advisor agrees to pay the
Sub-Advisor a monthly Investment Management Fee. The Investment Management
Fee shall be equal to: (i) 50% of the monthly management fee rate
(including performance adjustments, if any) that the Portfolio is obligated
to pay the Advisor under its Management Contract with the Advisor,
multiplied by: (ii) the fraction equal to the net assets of the Portfolio
as to which the Sub-Advisor shall have provided investment management
services divided by the net assets of the Portfolio for that month. If in
any fiscal year the aggregate expenses of the Portfolio exceed any
applicable expense limitation imposed by any state or federal securities
laws or regulations, and the Advisor waives all or a portion of its
management fee or reimburses the Portfolio for expenses to the extent
required to satisfy such limitation, the Investment Management Fee paid to
the Sub-Advisor will be reduced by 50% of the amount of such waivers or
reimbursements multiplied by the fraction determined in (ii). If the
Sub-Advisor reduces its fees to reflect such waivers or reimbursements and
the Advisor subsequently recovers all or any portion of such waivers and
reimbursements, then the Sub-Advisor shall be entitled to receive from the
Advisor a proportionate share of the amount recovered. To the extent that
waivers and reimbursements by the Advisor required by such limitations are
in excess of the Advisor's management fee, the Investment Management Fee
paid to the Sub-Advisor will be reduced to zero for that month, but in no
event shall the Sub-Advisor be required to reimburse the Advisor for all or
a portion of such excess reimbursements.
(c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have
provided both investment advisory services under subparagraph (a) and
investment management services under subparagraph (b) of paragraph 1 for
the same portion of the investments of the Portfolio for the same period,
the fees paid to the Sub-Advisor with respect to such investments shall be
calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its
expenses other than those expressly stated to be payable by the Sub-Advisor
hereunder or by the Advisor under the Management Contract with the
Portfolio, which expenses payable by the Portfolio shall include, without
limitation, (i) interest and taxes; (ii) brokerage commissions and other
costs in connection with the purchase or sale of securities and other
investment instruments; (iii) fees and expenses of the Trust's Trustees
other than those who are "interested persons" of the Trust, the Sub-Advisor
or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and
transfer agent fees and expenses; (vi) fees and expenses related to the
registration and qualification of the Trust and the Portfolio's shares for
distribution under state and federal securities laws; (vii) expenses of
printing and mailing reports and notices and proxy material to shareholders
of the Portfolio; (viii) all other expenses incidental to holding meetings
of the Portfolio's shareholders, including proxy solicitations therefore;
(ix) a pro rata share, based on relative net assets of the Portfolio and
other registered investment companies having Advisory and Service or
Management Contracts with the Advisor, of 50% of insurance premiums for
fidelity and other coverage; (x) its proportionate share of association
membership dues; (xi) expenses of typesetting for printing Prospectuses and
Statements of Additional Information and supplements thereto; (xii)
expenses of printing and mailing Prospectuses and Statements of Additional
Information and supplements thereto sent to existing shareholders; and
(xiii) such non-recurring or extraordinary expenses as may arise, including
those relating to actions, suits or proceedings to which the Portfolio is a
party and the legal obligation which the Portfolio may have to indemnify
the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and
shareholders of the Trust are or may be or become interested in the Advisor
or the Sub-Advisor as directors, officers or otherwise and that directors,
officers and stockholders of the Advisor or the Sub-Advisor are or may be
or become similarly interested in the Trust, and that the Advisor or the
Sub-Advisor may be or become interested in the Trust as a shareholder or
otherwise.
7. Services to Other Companies or Accounts: The services of the
Sub-Advisor to the Advisor are not to be deemed to be exclusive, the
Sub-Advisor being free to render services to others and engage in other
activities, provided, however, that such other services and activities do
not, during the term of this Agreement, interfere, in a material manner,
with the Sub-Advisor's ability to meet all of its obligations hereunder.
The Sub-Advisor shall for all purposes be an independent contractor and not
an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard of obligations or duties hereunder
on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to
liability to the Advisor, the Trust or to any shareholder of the Portfolio
for any act or omission in the course of, or connected with, rendering
services hereunder or for any losses that may be sustained in the purchase,
holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this
paragraph 9, this Agreement shall continue in force until July 31, 1997
and indefinitely thereafter, but only so long as the continuance after such
period shall be specifically approved at least annually by vote of the
Trust's Board of Trustees or by vote of a majority of the outstanding
voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the
Sub-Advisor and the Portfolio, such consent on the part of the Portfolio to
be authorized by vote of a majority of the outstanding voting securities of
the Portfolio.
(c) In addition to the requirements of subparagraphs (a) and (b) of this
paragraph 9, the terms of any continuance or modification of this Agreement
must have been approved by the vote of a majority of those Trustees of the
Trust who are not parties to this Agreement or interested persons of any
such party, cast in person at a meeting called for the purpose of voting on
such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time
on sixty (60) days' prior written notice to the other parties, terminate
this Agreement, without payment of any penalty, by action of its Board of
Trustees or Directors, or with respect to the Portfolio by vote of a
majority of its outstanding voting securities. This Agreement shall
terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on
notice of the limitation of shareholder liability as set forth in the
Declaration of Trust or other organizational document of the Trust and
agrees that any obligations of the Trust or the Portfolio arising in
connection with this Agreement shall be limited in all cases to the
Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction
of any such obligation from the shareholders or any shareholder of the
Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such
obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed
in accordance with, the laws of the Commonwealth of Massachusetts, without
giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the
outstanding voting securities," "assignment," and "interested persons,"
when used herein, shall have the respective meanings specified in the 1940
Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be
signed in their behalf by their respective officers thereunto duly
authorized, and their respective seals to be hereunto affixed, all as of
the date written above.
FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC.
BY: /s/ Stephen P. Jonas
Stephen P. Jonas
Treasurer
FIDELITY MANAGEMENT & RESEARCH COMPANY
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
President
FIDELITY SELECT PORTFOLIOS on behalf of
Cyclical Industries Portfolio
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
Senior Vice President
Exhibit 5(h)
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY MANAGEMENT & RESEARCH COMPANY
AND
FIDELITY MANAGEMENT & RESEARCH (U.K.) INC.
AND
FIDELITY SELECT PORTFOLIOS ON BEHALF OF NATURAL RESOURCES PORTFOLIO
AGREEMENT made this 16th day of January, 1997, by and between Fidelity
Management & Research Company, a Massachusetts corporation with principal
offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called
the "Advisor"); Fidelity Management & Research (U.K.) Inc. (hereinafter
called the "Sub-Advisor"); and Fidelity Select Portfolios, a Massachusetts
business trust which may issue one or more series of shares of beneficial
interest (hereinafter called the "Trust") on behalf of Natural Resources
Portfolio (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract
on behalf of the Portfolio, pursuant to which the Advisor is to act as
investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons
have personnel in various locations throughout the world and have been
formed in part for the purpose of researching and compiling information and
recommendations with respect to the economies of various countries, and
securities of issuers located in such countries, and providing investment
advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises
hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as
follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor
to perform one or more of the following services with respect to all or a
portion of the investments of the Portfolio. The services and the portion
of the investments of the Portfolio to be advised or managed by the
Sub-Advisor shall be as agreed upon from time to time by the Advisor and
the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all
personnel of the Sub-Advisor performing services for the Portfolio relating
to research, statistical and investment activities.
(a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the
Sub-Advisor shall provide investment advice to the Portfolio and the
Advisor with respect to all or a portion of the investments of the
Portfolio, and in connection with such advice shall furnish the Portfolio
and the Advisor such factual information, research reports and investment
recommendations as the Advisor may reasonably require. Such information
may include written and oral reports and analyses.
(b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor,
the Sub-Advisor shall, subject to the supervision of the Advisor, manage
all or a portion of the investments of the Portfolio in accordance with the
investment objective, policies and limitations provided in the Portfolio's
Prospectus or other governing instruments, as amended from time to time,
the Investment Company Act of 1940 (the "1940 Act") and rules thereunder,
as amended from time to time, and such other limitations as the Trust or
Advisor may impose with respect to the Portfolio by notice to the
Sub-Advisor. With respect to the portion of the investments of the
Portfolio under its management, the Sub-Advisor is authorized to make
investment decisions on behalf of the Portfolio with regard to any stock,
bond, other security or investment instrument, and to place orders for the
purchase and sale of such securities through such broker-dealers as the
Sub-Advisor may select. The Sub-Advisor may also be authorized, but only
to the extent such duties are delegated in writing by the Advisor, to
provide additional investment management services to the Portfolio,
including but not limited to services such as managing foreign currency
investments, purchasing and selling or writing futures and options
contracts, borrowing money or lending securities on behalf of the
Portfolio. All investment management and any other activities of the
Sub-Advisor shall at all times be subject to the control and direction of
the Advisor and the Trust's Board of Trustees.
(c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all
of the services contemplated by this Agreement directly or through such of
its subsidiaries or other affiliated persons as the Sub-Advisor shall
determine; provided, however, that performance of such services through
such subsidiaries or other affiliated persons shall have been approved by
the Trust to the extent required pursuant to the 1940 Act and rules
thereunder.
2. Information to be Provided to the Trust and the Advisor: The
Sub-Advisor shall furnish such reports, evaluations, information or
analyses to the Trust and the Advisor as the Trust's Board of Trustees or
the Advisor may reasonably request from time to time, or as the Sub-Advisor
may deem to be desirable.
3. Brokerage: In connection with the services provided under
subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall
place all orders for the purchase and sale of portfolio securities for the
Portfolio's account with brokers or dealers selected by the Sub-Advisor,
which may include brokers or dealers affiliated with the Advisor or
Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute
portfolio transactions at prices which are advantageous to the Portfolio
and at commission rates which are reasonable in relation to the benefits
received. In selecting brokers or dealers qualified to execute a
particular transaction, brokers or dealers may be selected who also provide
brokerage and research services (as those terms are defined in Section
28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to
the other accounts over which the Sub-Advisor or Advisor exercise
investment discretion. The Sub-Advisor is authorized to pay a broker or
dealer who provides such brokerage and research services a commission for
executing a portfolio transaction for the Portfolio which is in excess of
the amount of commission another broker or dealer would have charged for
effecting that transaction if the Sub-Advisor determines in good faith that
such amount of commission is reasonable in relation to the value of the
brokerage and research services provided by such broker or dealer. This
determination may be viewed in terms of either that particular transaction
or the overall responsibilities which the Sub-Advisor has with respect to
accounts over which it exercises investment discretion. The Trustees of
the Trust shall periodically review the commissions paid by the Portfolio
to determine if the commissions paid over representative periods of time
were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the
following basis for the services to be furnished hereunder.
(a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a)
of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor
a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 110% of
the Sub-Advisor's costs incurred in connection with rendering the services
referred to in subparagraph (a) of paragraph 1 of this Agreement. The
Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or
fee waivers by the Advisor, if any, in effect from time to time.
(b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph
(b) of paragraph 1 of this Agreement, the Advisor agrees to pay the
Sub-Advisor a monthly Investment Management Fee. The Investment Management
Fee shall be equal to: (i) 50% of the monthly management fee rate
(including performance adjustments, if any) that the Portfolio is obligated
to pay the Advisor under its Management Contract with the Advisor,
multiplied by: (ii) the fraction equal to the net assets of the Portfolio
as to which the Sub-Advisor shall have provided investment management
services divided by the net assets of the Portfolio for that month. If in
any fiscal year the aggregate expenses of the Portfolio exceed any
applicable expense limitation imposed by any state or federal securities
laws or regulations, and the Advisor waives all or a portion of its
management fee or reimburses the Portfolio for expenses to the extent
required to satisfy such limitation, the Investment Management Fee paid to
the Sub-Advisor will be reduced by 50% of the amount of such waivers or
reimbursements multiplied by the fraction determined in (ii). If the
Sub-Advisor reduces its fees to reflect such waivers or reimbursements and
the Advisor subsequently recovers all or any portion of such waivers or
reimbursements, then the Sub-Advisor shall be entitled to receive from the
Advisor a proportionate share of the amount recovered. To the extent that
waivers and reimbursements by the Advisor required by such limitations are
in excess of the Advisor's management fee, the Investment Management Fee
paid to the Sub-Advisor will be reduced to zero for that month, but in no
event shall the Sub-Advisor be required to reimburse the Advisor for all or
a portion of such excess reimbursements.
(c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have
provided both investment advisory services under subparagraph (a) and
investment management services under subparagraph (b) of paragraph (1) for
the same portion of the investments of the Portfolio for the same period,
the fees paid to the Sub-Advisor with respect to such investments shall be
calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its
expenses other than those expressly stated to be payable by the Sub-Advisor
hereunder or by the Advisor under the Management Contract with the
Portfolio, which expenses payable by the Portfolio shall include, without
limitation, (i) interest and taxes; (ii) brokerage commissions and other
costs in connection with the purchase or sale of securities and other
investment instruments; (iii) fees and expenses of the Trust's Trustees
other than those who are "interested persons" of the Trust, the Sub-Advisor
or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and
transfer agent fees and expenses; (vi) fees and expenses related to the
registration and qualification of the Trust and the Portfolio's shares for
distribution under state and federal securities laws; (vii) expenses of
printing and mailing reports and notices and proxy material to shareholders
of the Portfolio; (viii) all other expenses incidental to holding meetings
of the Portfolio's shareholders, including proxy solicitations therefore;
(ix) a pro rata share, based on relative net assets of the Portfolio and
other registered investment companies having Advisory and Service or
Management Contracts with the Advisor, of 50% of insurance premiums for
fidelity and other coverage; (x) its proportionate share of association
membership dues; (xi) expenses of typesetting for printing Prospectuses and
Statements of Additional Information and supplements thereto; (xii)
expenses of printing and mailing Prospectuses and Statements of Additional
Information and supplements thereto sent to existing shareholders; and
(xiii) such non-recurring or extraordinary expenses as may arise, including
those relating to actions, suits or proceedings to which the Portfolio is a
party and the legal obligation which the Portfolio may have to indemnify
the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and
shareholders of the Trust are or may be or become interested in the Advisor
or the Sub-Advisor as directors, officers or otherwise and that directors,
officers and stockholders of the Advisor or the Sub-Advisor are or may be
or become similarly interested in the Trust, and that the Advisor or the
Sub-Advisor may be or become interested in the Trust as a shareholder or
otherwise.
7. Services to Other Companies or Accounts: The services of the
Sub-Advisor to the Advisor are not to be deemed to be exclusive, the
Sub-Advisor being free to render services to others and engage in other
activities, provided, however, that such other services and activities do
not, during the term of this Agreement, interfere, in a material manner,
with the Sub-Advisor's ability to meet all of its obligations hereunder.
The Sub-Advisor shall for all purposes be an independent contractor and not
an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard of obligations or duties hereunder
on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to
liability to the Advisor, the Trust or to any shareholder of the Portfolio
for any act or omission in the course of, or connected with, rendering
services hereunder or for any losses that may be sustained in the purchase,
holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this
paragraph 9, this Agreement shall continue in force until July 31, 1997 and
indefinitely thereafter, but only so long as the continuance after such
period shall be specifically approved at least annually by vote of the
Trust's Board of Trustees or by vote of a majority of the outstanding
voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the
Sub-Advisor and the Portfolio, such consent on the part of the Portfolio to
be authorized by vote of a majority of the outstanding voting securities of
the Portfolio.
(c) In addition to the requirements of subparagraphs (a) and (b) of this
paragraph 9, the terms of any continuance or modification of this Agreement
must have been approved by the vote of a majority of those Trustees of the
Trust who are not parties to this Agreement or interested persons of any
such party, cast in person at a meeting called for the purpose of voting on
such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time
on sixty (60) days' prior written notice to the other parties, terminate
this Agreement, without payment of any penalty, by action of its Board of
Trustees or Directors, or with respect to the Portfolio by vote of a
majority of its outstanding voting securities. This Agreement shall
terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on
notice of the limitation of shareholder liability as set forth in the
Declaration of Trust or other organizational document of the Trust and
agrees that any obligations of the Trust or the Portfolio arising in
connection with this Agreement shall be limited in all cases to the
Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction
of any such obligation from the shareholders or any shareholder of the
Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such
obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed
in accordance with, the laws of the Commonwealth of Massachusetts, without
giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the
outstanding voting securities," "assignment," and "interested persons,"
when used herein, shall have the respective meanings specified in the 1940
Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be
signed in their behalf by their respective officers thereunto duly
authorized, and their respective seals to be hereunto affixed, all as of
the date written above.
FIDELITY MANAGEMENT & RESEARCH (U.K.) INC.
BY: /s/ Stephen P. Jonas
Stephen P. Jonas
Treasurer
FIDELITY MANAGEMENT & RESEARCH COMPANY
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
President
FIDELITY SELECT PORTFOLIOS on behalf of
Natural Resources Portfolio
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
Senior Vice President
Exhibit 5(i)
SUB-ADVISORY AGREEMENT
BETWEEN
FIDELITY MANAGEMENT & RESEARCH COMPANY
AND
FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC.
AND
FIDELITY SELECT PORTFOLIOS ON BEHALF OF NATURAL RESOURCES PORTFOLIO
AGREEMENT made this 16th day of January, 1997, by and between Fidelity
Management & Research Company, a Massachusetts corporation with principal
offices at 82 Devonshire Street, Boston, Massachusetts (hereinafter called
the "Advisor"); Fidelity Management & Research (Far East) Inc. (hereinafter
called the "Sub-Advisor"); and Fidelity Select Portfolios, a Massachusetts
business trust which may issue one or more series of shares of beneficial
interest (hereinafter called the "Trust") on behalf of Natural Resources
Portfolio (hereinafter called the "Portfolio").
WHEREAS the Trust and the Advisor have entered into a Management Contract
on behalf of the Portfolio, pursuant to which the Advisor is to act as
investment manager of the Portfolio; and
WHEREAS the Sub-Advisor and its subsidiaries and other affiliated persons
have personnel in various locations throughout the world and have been
formed in part for the purpose of researching and compiling information and
recommendations with respect to the economies of various countries, and
securities of issuers located in such countries, and providing investment
advisory services in connection therewith;
NOW, THEREFORE, in consideration of the premises and the mutual promises
hereinafter set forth, the Trust, the Advisor and the Sub-Advisor agree as
follows:
1. Duties: The Advisor may, in its discretion, appoint the Sub-Advisor
to perform one or more of the following services with respect to all or a
portion of the investments of the Portfolio. The services and the portion
of the investments of the Portfolio to be advised or managed by the
Sub-Advisor shall be as agreed upon from time to time by the Advisor and
the Sub-Advisor. The Sub-Advisor shall pay the salaries and fees of all
personnel of the Sub-Advisor performing services for the Portfolio relating
to research, statistical and investment activities.
(a) INVESTMENT ADVICE: If and to the extent requested by the Advisor, the
Sub-Advisor shall provide investment advice to the Portfolio and the
Advisor with respect to all or a portion of the investments of the
Portfolio, and in connection with such advice shall furnish the Portfolio
and the Advisor such factual information, research reports and investment
recommendations as the Advisor may reasonably require. Such information
may include written and oral reports and analyses.
(b) INVESTMENT MANAGEMENT: If and to the extent requested by the Advisor,
the Sub-Advisor shall, subject to the supervision of the Advisor, manage
all or a portion of the investments of the Portfolio in accordance with the
investment objective, policies and limitations provided in the Portfolio's
Prospectus or other governing instruments, as amended from time to time,
the Investment Company Act of 1940 (the "1940 Act") and rules thereunder,
as amended from time to time, and such other limitations as the Trust or
Advisor may impose with respect to the Portfolio by notice to the
Sub-Advisor. With respect to the portion of the investments of the
Portfolio under its management, the Sub-Advisor is authorized to make
investment decisions on behalf of the Portfolio with regard to any stock,
bond, other security or investment instrument, and to place orders for the
purchase and sale of such securities through such broker-dealers as the
Sub-Advisor may select. The Sub-Advisor may also be authorized, but only
to the extent such duties are delegated in writing by the Advisor, to
provide additional investment management services to the Portfolio,
including but not limited to services such as managing foreign currency
investments, purchasing and selling or writing futures and options
contracts, borrowing money, or lending securities on behalf of the
Portfolio. All investment management and any other activities of the
Sub-Advisor shall at all times be subject to the control and direction of
the Advisor and the Trust's Board of Trustees.
(c) SUBSIDIARIES AND AFFILIATES: The Sub-Advisor may perform any or all
of the services contemplated by this Agreement directly or through such of
its subsidiaries or other affiliated persons as the Sub-Advisor shall
determine; provided, however, that performance of such services through
such subsidiaries or other affiliated persons shall have been approved by
the Trust to the extent required pursuant to the 1940 Act and rules
thereunder.
2. Information to be Provided to the Trust and the Advisor: The
Sub-Advisor shall furnish such reports, evaluations, information or
analyses to the Trust and the Advisor as the Trust's Board of Trustees or
the Advisor may reasonably request from time to time, or as the Sub-Advisor
may deem to be desirable.
3. Brokerage: In connection with the services provided under
subparagraph (b) of paragraph 1 of this Agreement, the Sub-Advisor shall
place all orders for the purchase and sale of portfolio securities for the
Portfolio's account with brokers or dealers selected by the Sub-Advisor,
which may include brokers or dealers affiliated with the Advisor or
Sub-Advisor. The Sub-Advisor shall use its best efforts to seek to execute
portfolio transactions at prices which are advantageous to the Portfolio
and at commission rates which are reasonable in relation to the benefits
received. In selecting brokers or dealers qualified to execute a
particular transaction, brokers or dealers may be selected who also provide
brokerage and research services (as those terms are defined in Section
28(e) of the Securities Exchange Act of l934) to the Portfolio and/or to
the other accounts over which the Sub-Advisor or Advisor exercise
investment discretion. The Sub-Advisor is authorized to pay a broker or
dealer who provides such brokerage and research services a commission for
executing a portfolio transaction for the Portfolio which is in excess of
the amount of commission another broker or dealer would have charged for
effecting that transaction if the Sub-Advisor determines in good faith that
such amount of commission is reasonable in relation to the value of the
brokerage and research services provided by such broker or dealer. This
determination may be viewed in terms of either that particular transaction
or the overall responsibilities which the Sub-Advisor has with respect to
accounts over which it exercises investment discretion. The Trustees of
the Trust shall periodically review the commissions paid by the Portfolio
to determine if the commissions paid over representative periods of time
were reasonable in relation to the benefits to the Portfolio.
4. Compensation: The Advisor shall compensate the Sub-Advisor on the
following basis for the services to be furnished hereunder.
(a) INVESTMENT ADVISORY FEE: For services provided under subparagraph (a)
of paragraph 1 of this Agreement, the Advisor agrees to pay the Sub-Advisor
a monthly Sub-Advisory Fee. The Sub-Advisory Fee shall be equal to 105% of
the Sub-Advisor's costs incurred in connection with rendering the services
referred to in subparagraph (a) of paragraph 1 of this Agreement. The
Sub-Advisory Fee shall not be reduced to reflect expense reimbursements or
fee waivers by the Advisor, if any, in effect from time to time.
(b) INVESTMENT MANAGEMENT FEE: For services provided under subparagraph
(b) of paragraph 1 of this Agreement, the Advisor agrees to pay the
Sub-Advisor a monthly Investment Management Fee. The Investment Management
Fee shall be equal to: (i) 50% of the monthly management fee rate
(including performance adjustments, if any) that the Portfolio is obligated
to pay the Advisor under its Management Contract with the Advisor,
multiplied by: (ii) the fraction equal to the net assets of the Portfolio
as to which the Sub-Advisor shall have provided investment management
services divided by the net assets of the Portfolio for that month. If in
any fiscal year the aggregate expenses of the Portfolio exceed any
applicable expense limitation imposed by any state or federal securities
laws or regulations, and the Advisor waives all or a portion of its
management fee or reimburses the Portfolio for expenses to the extent
required to satisfy such limitation, the Investment Management Fee paid to
the Sub-Advisor will be reduced by 50% of the amount of such waivers or
reimbursements multiplied by the fraction determined in (ii). If the
Sub-Advisor reduces its fees to reflect such waivers or reimbursements and
the Advisor subsequently recovers all or any portion of such waivers and
reimbursements, then the Sub-Advisor shall be entitled to receive from the
Advisor a proportionate share of the amount recovered. To the extent that
waivers and reimbursements by the Advisor required by such limitations are
in excess of the Advisor's management fee, the Investment Management Fee
paid to the Sub-Advisor will be reduced to zero for that month, but in no
event shall the Sub-Advisor be required to reimburse the Advisor for all or
a portion of such excess reimbursements.
(c) PROVISION OF MULTIPLE SERVICES: If the Sub-Advisor shall have
provided both investment advisory services under subparagraph (a) and
investment management services under subparagraph (b) of paragraph 1 for
the same portion of the investments of the Portfolio for the same period,
the fees paid to the Sub-Advisor with respect to such investments shall be
calculated exclusively under subparagraph (b) of this paragraph 4.
5. Expenses: It is understood that the Portfolio will pay all of its
expenses other than those expressly stated to be payable by the Sub-Advisor
hereunder or by the Advisor under the Management Contract with the
Portfolio, which expenses payable by the Portfolio shall include, without
limitation, (i) interest and taxes; (ii) brokerage commissions and other
costs in connection with the purchase or sale of securities and other
investment instruments; (iii) fees and expenses of the Trust's Trustees
other than those who are "interested persons" of the Trust, the Sub-Advisor
or the Advisor; (iv) legal and audit expenses; (v) custodian, registrar and
transfer agent fees and expenses; (vi) fees and expenses related to the
registration and qualification of the Trust and the Portfolio's shares for
distribution under state and federal securities laws; (vii) expenses of
printing and mailing reports and notices and proxy material to shareholders
of the Portfolio; (viii) all other expenses incidental to holding meetings
of the Portfolio's shareholders, including proxy solicitations therefore;
(ix) a pro rata share, based on relative net assets of the Portfolio and
other registered investment companies having Advisory and Service or
Management Contracts with the Advisor, of 50% of insurance premiums for
fidelity and other coverage; (x) its proportionate share of association
membership dues; (xi) expenses of typesetting for printing Prospectuses and
Statements of Additional Information and supplements thereto; (xii)
expenses of printing and mailing Prospectuses and Statements of Additional
Information and supplements thereto sent to existing shareholders; and
(xiii) such non-recurring or extraordinary expenses as may arise, including
those relating to actions, suits or proceedings to which the Portfolio is a
party and the legal obligation which the Portfolio may have to indemnify
the Trust's Trustees and officers with respect thereto.
6. Interested Persons: It is understood that Trustees, officers, and
shareholders of the Trust are or may be or become interested in the Advisor
or the Sub-Advisor as directors, officers or otherwise and that directors,
officers and stockholders of the Advisor or the Sub-Advisor are or may be
or become similarly interested in the Trust, and that the Advisor or the
Sub-Advisor may be or become interested in the Trust as a shareholder or
otherwise.
7. Services to Other Companies or Accounts: The services of the
Sub-Advisor to the Advisor are not to be deemed to be exclusive, the
Sub-Advisor being free to render services to others and engage in other
activities, provided, however, that such other services and activities do
not, during the term of this Agreement, interfere, in a material manner,
with the Sub-Advisor's ability to meet all of its obligations hereunder.
The Sub-Advisor shall for all purposes be an independent contractor and not
an agent or employee of the Advisor or the Trust.
8. Standard of Care: In the absence of willful misfeasance, bad faith,
gross negligence or reckless disregard of obligations or duties hereunder
on the part of the Sub-Advisor, the Sub-Advisor shall not be subject to
liability to the Advisor, the Trust or to any shareholder of the Portfolio
for any act or omission in the course of, or connected with, rendering
services hereunder or for any losses that may be sustained in the purchase,
holding or sale of any security.
9. Duration and Termination of Agreement; Amendments:
(a) Subject to prior termination as provided in subparagraph (d) of this
paragraph 9, this Agreement shall continue in force until July 31, 1997
and indefinitely thereafter, but only so long as the continuance after such
period shall be specifically approved at least annually by vote of the
Trust's Board of Trustees or by vote of a majority of the outstanding
voting securities of the Portfolio.
(b) This Agreement may be modified by mutual consent of the Advisor, the
Sub-Advisor and the Portfolio, such consent on the part of the Portfolio to
be authorized by vote of a majority of the outstanding voting securities of
the Portfolio.
(c) In addition to the requirements of subparagraphs (a) and (b) of this
paragraph 9, the terms of any continuance or modification of this Agreement
must have been approved by the vote of a majority of those Trustees of the
Trust who are not parties to this Agreement or interested persons of any
such party, cast in person at a meeting called for the purpose of voting on
such approval.
(d) Either the Advisor, the Sub-Advisor or the Portfolio may, at any time
on sixty (60) days' prior written notice to the other parties, terminate
this Agreement, without payment of any penalty, by action of its Board of
Trustees or Directors, or with respect to the Portfolio by vote of a
majority of its outstanding voting securities. This Agreement shall
terminate automatically in the event of its assignment.
10. Limitation of Liability: The Sub-Advisor is hereby expressly put on
notice of the limitation of shareholder liability as set forth in the
Declaration of Trust or other organizational document of the Trust and
agrees that any obligations of the Trust or the Portfolio arising in
connection with this Agreement shall be limited in all cases to the
Portfolio and its assets, and the Sub-Advisor shall not seek satisfaction
of any such obligation from the shareholders or any shareholder of the
Portfolio. Nor shall the Sub-Advisor seek satisfaction of any such
obligation from the Trustees or any individual Trustee.
11. Governing Law: This Agreement shall be governed by, and construed
in accordance with, the laws of the Commonwealth of Massachusetts, without
giving effect to the choice of laws provisions thereof.
The terms "registered investment company," "vote of a majority of the
outstanding voting securities," "assignment," and "interested persons,"
when used herein, shall have the respective meanings specified in the 1940
Act as now in effect or as hereafter amended.
IN WITNESS WHEREOF the parties hereto have caused this instrument to be
signed in their behalf by their respective officers thereunto duly
authorized, and their respective seals to be hereunto affixed, all as of
the date written above.
FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC.
BY: /s/ Stephen P. Jonas
Stephen P. Jonas
Treasurer
FIDELITY MANAGEMENT & RESEARCH COMPANY
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
President
FIDELITY SELECT PORTFOLIOS on behalf of
Natural Resources Portfolio
BY: /s/ J. Gary Burkhead
J. Gary Burkhead
Senior Vice President
Exhibit 6(i)
GENERAL DISTRIBUTION AGREEMENT
between
FIDELITY SELECT PORTFOLIOS
and
FIDELITY DISTRIBUTORS CORPORATION
Agreement made this 16th day of January, 1997, between Fidelity Select
Portfolios, a Massachusetts business trust having its principal place of
business in Boston, Massachusetts and which may issue one or more series of
beneficial interest ("Issuer"), with respect to shares of Cyclical
Industries Portfolio, a series of the Issuer, and Fidelity Distributors
Corporation, a Massachusetts corporation having its principal place of
business in Boston, Massachusetts ("Distributors").
In consideration of the mutual promises and undertakings herein contained,
the parties agree as follows:
1. Sale of Shares - The Issuer grants to Distributors the right to sell
shares on behalf of the Issuer during the term of this Agreement and
subject to the registration requirements of the Securities Act of 1933, as
amended ("1933 Act"), and of the laws governing the sale of securities in
the various states ("Blue Sky Laws") under the following terms and
conditions: Distributors (i) shall have the right to sell, as agent on
behalf of the Issuer, shares authorized for issue and registered under the
1933 Act, and (ii) may sell shares under offers of exchange, if available,
between and among the funds advised by Fidelity Management & Research
Company ("FMR") or any of its affiliates.
2. Sale of Shares by the Issuer - The rights granted to Distributors shall
be nonexclusive in that the Issuer reserves the right to sell its shares to
investors on applications received and accepted by the Issuer. Further,
the Issuer reserves the right to issue shares in connection with the merger
or consolidation, or acquisition by the Issuer through purchase or
otherwise, with any other investment company, trust, or personal holding
company.
3. Shares Covered by this Agreement - This Agreement shall apply to
unissued shares of the Issuer, shares of the Issuer held in its treasury in
the event that in the discretion of the Issuer treasury shares shall be
sold, and shares of the Issuer repurchased for resale.
4. Public Offering Price - Except as otherwise noted in the Issuer's
current Prospectus and/or Statement of Additional Information, all shares
sold to investors by Distributors or the Issuer will be sold at the public
offering price. The public offering price for all accepted subscriptions
will be the net asset value per share, as determined in the manner
described in the Issuer's current Prospectus and/or Statement of Additional
Information, plus a sales charge (if any) described in the Issuer's current
Prospectus and/or Statement of Additional Information. The Issuer shall in
all cases receive the net asset value per share on all sales. If a sales
charge is in effect, Distributors shall have the right subject to such
rules or regulations of the Securities and Exchange Commission as may then
be in effect pursuant to Section 22 of the Investment Company Act of 1940
to pay a portion of the sales charge to dealers who have sold shares of the
Issuer. If a fee in connection with shareholder redemptions is in effect,
the Issuer shall collect the fee on behalf of Distributors and, unless
otherwise agreed upon by the Issuer and Distributors, Distributors shall be
entitled to receive all of such fees.
5. Suspension of Sales - If and whenever the determination of net asset
value is suspended and until such suspension is terminated, no further
orders for shares shall be processed by Distributors except such
unconditional orders as may have been placed with Distributors before it
had knowledge of the suspension. In addition, the Issuer reserves the
right to suspend sales and Distributors' authority to process orders for
shares on behalf of the Issuer if, in the judgment of the Issuer, it is in
the best interests of the Issuer to do so. Suspension will continue for
such period as may be determined by the Issuer.
6. Solicitation of Sales - In consideration of these rights granted to
Distributors, Distributors agrees to use all reasonable efforts, consistent
with its other business, to secure purchasers for shares of the Issuer.
This shall not prevent Distributors from entering into like arrangements
(including arrangements involving the payment of underwriting commissions)
with other issuers. This does not obligate Distributors to register as a
broker or dealer under the Blue Sky Laws of any jurisdiction in which it is
not now registered or to maintain its registration in any jurisdiction in
which it is now registered. If a sales charge is in effect, Distributors
shall have the right to enter into sales agreements with dealers of its
choice for the sale of shares of the Issuer to the public at the public
offering price only and fix in such agreements the portion of the sales
charge which may be retained by dealers, provided that the Issuer shall
approve the form of the dealer agreement and the dealer discounts set forth
therein and shall evidence such approval by filing said form of dealer
agreement and amendments thereto as an exhibit to its currently effective
Registration Statement under the 1933 Act.
7. Authorized Representations - Distributors is not authorized by the
Issuer to give any information or to make any representations other than
those contained in the appropriate registration statements or Prospectuses
and Statements of Additional Information filed with the Securities and
Exchange Commission under the 1933 Act (as these registration statements,
Prospectuses and Statements of Additional Information may be amended from
time to time), or contained in shareholder reports or other material that
may be prepared by or on behalf of the Issuer for Distributors' use. This
shall not be construed to prevent Distributors from preparing and
distributing sales literature or other material as it may deem appropriate.
8. Portfolio Securities - Portfolio securities of the Issuer may be bought
or sold by or through Distributors, and Distributors may participate
directly or indirectly in brokerage commissions or "spreads" for
transactions in portfolio securities of the Issuer.
9. Registration of Shares - The Issuer agrees that it will take all action
necessary to register shares under the 1933 Act (subject to the necessary
approval of its shareholders) so that there will be available for sale the
number of shares Distributors may reasonably be expected to sell. The
Issuer shall make available to Distributors such number of copies of its
currently effective Prospectus and Statement of Additional Information as
Distributors may reasonably request. The Issuer shall furnish to
Distributors copies of all information, financial statements and other
papers which Distributors may reasonably request for use in connection with
the distribution of shares of the Issuer.
10. Expenses - The Issuer shall pay all fees and expenses (a) in connection
with the preparation, setting in type and filing of any registration
statement, Prospectus and Statement of Additional Information under the
1933 Act and amendments for the issue of its shares, (b) in connection with
the registration and qualification of shares for sale in the various states
in which the Board of Trustees of the Issuer shall determine it advisable
to qualify such shares for sale (including registering the Issuer as a
broker or dealer or any officer of the Issuer as agent or salesman in any
state), (c) of preparing, setting in type, printing and mailing any report
or other communication to shareholders of the Issuer in their capacity as
such, and (d) of preparing, setting in type, printing and mailing
Prospectuses, Statements of Additional Information and any supplements
thereto sent to existing shareholders.
It is recognized by the Issuer that FMR may make payment to Distributors
with respect to any expenses incurred in the distribution of shares of the
Issuer, such payments payable from the past profits or other resources of
FMR including management fees paid to it by the Issuer.
11. Indemnification - The Issuer agrees to indemnify and hold harmless
Distributors and each of its directors and officers and each person, if
any, who controls Distributors within the meaning of Section 15 of the 1933
Act against any loss, liability, claim, damages or expense (including the
reasonable cost of investigating or defending any alleged loss, liability,
claim, damages, or expense and reasonable counsel fees incurred in
connection therewith) arising by reason of any person acquiring any shares,
based upon the ground that the registration statement, Prospectus,
Statement of Additional Information, shareholder reports or other
information filed or made public by the Issuer (as from time to time
amended) included an untrue statement of a material fact or omitted to
state a material fact required to be stated or necessary in order to make
the statements not misleading under the 1933 Act, or any other statute or
the common law. However, the Issuer does not agree to indemnify
Distributors or hold it harmless to the extent that the statement or
omission was made in reliance upon, and in conformity with, information
furnished to the Issuer by or on behalf of Distributors. In no case (i) is
the indemnity of the Issuer in favor of Distributors or any person
indemnified to be deemed to protect Distributors or any person against any
liability to the Issuer or its security holders to which Distributors or
such person would otherwise be subject by reason of wilful misfeasance, bad
faith or gross negligence in the performance of its duties or by reason of
its reckless disregard of its obligations and duties under this Agreement,
or (ii) is the Issuer to be liable under its indemnity agreement contained
in this paragraph with respect to any claim made against Distributors or
any person indemnified unless Distributors or person, as the case may be,
shall have notified the Issuer in writing of the claim within a reasonable
time after the summons or other first written notification giving
information of the nature of the claim shall have been served upon
Distributors or any such person (or after Distributors or such person shall
have received notice of service on any designated agent). However, failure
to notify the Issuer of any claim shall not relieve the Issuer from any
liability which it may have to Distributors or any person against whom such
action is brought otherwise than on account of its indemnity agreement
contained in this paragraph. The Issuer shall be entitled to participate
at its own expense in the defense, or, if it so elects, to assume the
defense of any suit brought to enforce any claims, but if the Issuer elects
to assume the defense, the defense shall be conducted by counsel chosen by
it and satisfactory to Distributors or person or persons, defendant or
defendants in the suit. In the event the Issuer elects to assume the
defense of any suit and retain counsel, Distributors, officers or directors
or controlling person or persons, defendant or defendants in the suit,
shall bear the fees and expenses of any additional counsel retained by
them. If the Issuer does not elect to assume the defense of any suit, it
will reimburse Distributors, officers or directors or controlling person or
persons, defendant or defendants in the suit, for the reasonable fees and
expenses of any counsel retained by them. The Issuer agrees to notify
Distributors promptly of the commencement of any litigation or proceedings
against it or any of its officers or trustees in connection with the
issuance or sale of any of the shares.
Distributors also covenants and agrees that it will indemnify and hold
harmless the Issuer and each of its Board members and officers and each
person, if any, who controls the Issuer within the meaning of Section 15 of
the 1933 Act, against any loss, liability, damages, claim or expense
(including the reasonable cost of investigating or defending any alleged
loss, liability, damages, claim or expense and reasonable counsel fees
incurred in connection therewith) arising by reason of any person acquiring
any shares, based upon the 1933 Act or any other statute or common law,
alleging any wrongful act of Distributors or any of its employees or
alleging that the registration statement, Prospectus, Statement of
Additional Information, shareholder reports or other information filed or
made public by the Issuer (as from time to time amended) included an untrue
statement of a material fact or omitted to state a material fact required
to be stated or necessary in order to make the statements not misleading,
insofar as the statement or omission was made in reliance upon, and in
conformity with information furnished to the Issuer by or on behalf of
Distributors. In no case (i) is the indemnity of Distributors in favor of
the Issuer or any person indemnified to be deemed to protect the Issuer or
any person against any liability to which the Issuer or such person would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of its duties or by reason of its reckless
disregard of its obligations and duties under this Agreement, or (ii) is
Distributors to be liable under its indemnity agreement contained in this
paragraph with respect to any claim made against the Issuer or any person
indemnified unless the Issuer or person, as the case may be, shall have
notified Distributors in writing of the claim within a reasonable time
after the summons or other first written notification giving information of
the nature of the claim shall have been served upon the Issuer or any such
person (or after the Issuer or such person shall have received notice of
service on any designated agent). However, failure to notify Distributors
of any claim shall not relieve Distributors from any liability which it may
have to the Issuer or any person against whom the action is brought
otherwise than on account of its indemnity agreement contained in this
paragraph. In the case of any notice to Distributors, it shall be entitled
to participate, at its own expense, in the defense or, if it so elects, to
assume the defense of any suit brought to enforce the claim, but if
Distributors elects to assume the defense, the defense shall be conducted
by counsel chosen by it and satisfactory to the Issuer, to its officers and
Board and to any controlling person or persons, defendant or defendants in
the suit. In the event that Distributors elects to assume the defense of
any suit and retain counsel, the Issuer or controlling persons, defendant
or defendants in the suit, shall bear the fees and expense of any
additional counsel retained by them. If Distributors does not elect to
assume the defense of any suit, it will reimburse the Issuer, officers and
Board or controlling person or persons, defendant or defendants in the
suit, for the reasonable fees and expenses of any counsel retained by them.
Distributors agrees to notify the Issuer promptly of the commencement of
any litigation or proceedings against it in connection with the issue and
sale of any of the shares.
12. Effective Date - This agreement shall be effective upon its execution,
and unless terminated as provided, shall continue in force until January
31, 1997 and thereafter from year to year, provided continuance is approved
annually by the vote of a majority of the Board members of the Issuer, and
by the vote of those Board members of the Issuer who are not "interested
persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment
Company Act of 1940 is in effect, by the vote of those Board members of the
Issuer who are not "interested persons" of the Issuer and who are not
parties to the Distribution and Service Plan or this Agreement and have no
financial interest in the operation of the Distribution and Service Plan or
in any agreements related to the Distribution and Service Plan, cast in
person at a meeting called for the purpose of voting on the approval. This
Agreement shall automatically terminate in the event of its assignment. As
used in this paragraph, the terms "assignment" and "interested persons"
shall have the respective meanings specified in the Investment Company Act
of 1940 as now in effect or as hereafter amended. In addition to
termination by failure to approve continuance or by assignment, this
Agreement may at any time be terminated by either party upon not less than
sixty days' prior written notice to the other party.
13. Notice - Any notice required or permitted to be given by either party
to the other shall be deemed sufficient if sent by registered or certified
mail, postage prepaid, addressed by the party giving notice to the other
party at the last address furnished by the other party to the party giving
notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts,
and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts.
14. Limitation of Liability - Distributors is expressly put on notice of
the limitation of shareholder liability as set forth in the Declaration of
Trust or other organizational document of the Issuer and agrees that the
obligations assumed by the Issuer under this contract shall be limited in
all cases to the Issuer and its assets. Distributors shall not seek
satisfaction of any such obligation from the shareholders or any
shareholder of the Issuer. Nor shall Distributors seek satisfaction of any
such obligation from the Trustees or any individual Trustee of the Issuer.
Distributors understands that the rights and obligations of each series of
shares of the Issuer under the Issuer's Declaration of Trust or other
organizational document are separate and distinct from those of any and all
other series.
15. This agreement shall be governed by, and construed in accordance with,
the laws of the Commonwealth of Massachusetts, without giving effect to the
choice of laws provisions thereof.
IN WITNESS WHEREOF, the Issuer has executed this instrument in its name
and behalf, and its seal affixed, by one of its officers duly authorized,
and Distributors has executed this instrument in its name and behalf by one
of its officers duly authorized, as of the day and year first above
written.
FIDELITY SELECT PORTFOLIOS
By /s/ J. Gary Burkhead
FIDELITY DISTRIBUTORS CORPORATION
By /s/ Paul J. Hondros
Exhibit 6(j)
GENERAL DISTRIBUTION AGREEMENT
between
FIDELITY SELECT PORTFOLIOS
and
FIDELITY DISTRIBUTORS CORPORATION
Agreement made this 16th day of January, 1997, between Fidelity Select
Portfolios, a Massachusetts business trust having its principal place of
business in Boston, Massachusetts and which may issue one or more series of
beneficial interest ("Issuer"), with respect to shares of Natural Resources
Portfolio, a series of the Issuer, and Fidelity Distributors Corporation, a
Massachusetts corporation having its principal place of business in Boston,
Massachusetts ("Distributors").
In consideration of the mutual promises and undertakings herein contained,
the parties agree as follows:
1. Sale of Shares - The Issuer grants to Distributors the right to sell
shares on behalf of the Issuer during the term of this Agreement and
subject to the registration requirements of the Securities Act of 1933, as
amended ("1933 Act"), and of the laws governing the sale of securities in
the various states ("Blue Sky Laws") under the following terms and
conditions: Distributors (i) shall have the right to sell, as agent on
behalf of the Issuer, shares authorized for issue and registered under the
1933 Act, and (ii) may sell shares under offers of exchange, if available,
between and among the funds advised by Fidelity Management & Research
Company ("FMR") or any of its affiliates.
2. Sale of Shares by the Issuer - The rights granted to Distributors shall
be nonexclusive in that the Issuer reserves the right to sell its shares to
investors on applications received and accepted by the Issuer. Further,
the Issuer reserves the right to issue shares in connection with the merger
or consolidation, or acquisition by the Issuer through purchase or
otherwise, with any other investment company, trust, or personal holding
company.
3. Shares Covered by this Agreement - This Agreement shall apply to
unissued shares of the Issuer, shares of the Issuer held in its treasury in
the event that in the discretion of the Issuer treasury shares shall be
sold, and shares of the Issuer repurchased for resale.
4. Public Offering Price - Except as otherwise noted in the Issuer's
current Prospectus and/or Statement of Additional Information, all shares
sold to investors by Distributors or the Issuer will be sold at the public
offering price. The public offering price for all accepted subscriptions
will be the net asset value per share, as determined in the manner
described in the Issuer's current Prospectus and/or Statement of Additional
Information, plus a sales charge (if any) described in the Issuer's current
Prospectus and/or Statement of Additional Information. The Issuer shall in
all cases receive the net asset value per share on all sales. If a sales
charge is in effect, Distributors shall have the right subject to such
rules or regulations of the Securities and Exchange Commission as may then
be in effect pursuant to Section 22 of the Investment Company Act of 1940
to pay a portion of the sales charge to dealers who have sold shares of the
Issuer. If a fee in connection with shareholder redemptions is in effect,
the Issuer shall collect the fee on behalf of Distributors and, unless
otherwise agreed upon by the Issuer and Distributors, Distributors shall be
entitled to receive all of such fees.
5. Suspension of Sales - If and whenever the determination of net asset
value is suspended and until such suspension is terminated, no further
orders for shares shall be processed by Distributors except such
unconditional orders as may have been placed with Distributors before it
had knowledge of the suspension. In addition, the Issuer reserves the
right to suspend sales and Distributors' authority to process orders for
shares on behalf of the Issuer if, in the judgment of the Issuer, it is in
the best interests of the Issuer to do so. Suspension will continue for
such period as may be determined by the Issuer.
6. Solicitation of Sales - In consideration of these rights granted to
Distributors, Distributors agrees to use all reasonable efforts, consistent
with its other business, to secure purchasers for shares of the Issuer.
This shall not prevent Distributors from entering into like arrangements
(including arrangements involving the payment of underwriting commissions)
with other issuers. This does not obligate Distributors to register as a
broker or dealer under the Blue Sky Laws of any jurisdiction in which it is
not now registered or to maintain its registration in any jurisdiction in
which it is now registered. If a sales charge is in effect, Distributors
shall have the right to enter into sales agreements with dealers of its
choice for the sale of shares of the Issuer to the public at the public
offering price only and fix in such agreements the portion of the sales
charge which may be retained by dealers, provided that the Issuer shall
approve the form of the dealer agreement and the dealer discounts set forth
therein and shall evidence such approval by filing said form of dealer
agreement and amendments thereto as an exhibit to its currently effective
Registration Statement under the 1933 Act.
7. Authorized Representations - Distributors is not authorized by the
Issuer to give any information or to make any representations other than
those contained in the appropriate registration statements or Prospectuses
and Statements of Additional Information filed with the Securities and
Exchange Commission under the 1933 Act (as these registration statements,
Prospectuses and Statements of Additional Information may be amended from
time to time), or contained in shareholder reports or other material that
may be prepared by or on behalf of the Issuer for Distributors' use. This
shall not be construed to prevent Distributors from preparing and
distributing sales literature or other material as it may deem appropriate.
8. Portfolio Securities - Portfolio securities of the Issuer may be bought
or sold by or through Distributors, and Distributors may participate
directly or indirectly in brokerage commissions or "spreads" for
transactions in portfolio securities of the Issuer.
9. Registration of Shares - The Issuer agrees that it will take all action
necessary to register shares under the 1933 Act (subject to the necessary
approval of its shareholders) so that there will be available for sale the
number of shares Distributors may reasonably be expected to sell. The
Issuer shall make available to Distributors such number of copies of its
currently effective Prospectus and Statement of Additional Information as
Distributors may reasonably request. The Issuer shall furnish to
Distributors copies of all information, financial statements and other
papers which Distributors may reasonably request for use in connection with
the distribution of shares of the Issuer.
10. Expenses - The Issuer shall pay all fees and expenses (a) in connection
with the preparation, setting in type and filing of any registration
statement, Prospectus and Statement of Additional Information under the
1933 Act and amendments for the issue of its shares, (b) in connection with
the registration and qualification of shares for sale in the various states
in which the Board of Trustees of the Issuer shall determine it advisable
to qualify such shares for sale (including registering the Issuer as a
broker or dealer or any officer of the Issuer as agent or salesman in any
state), (c) of preparing, setting in type, printing and mailing any report
or other communication to shareholders of the Issuer in their capacity as
such, and (d) of preparing, setting in type, printing and mailing
Prospectuses, Statements of Additional Information and any supplements
thereto sent to existing shareholders.
It is recognized by the Issuer that FMR may make payment to Distributors
with respect to any expenses incurred in the distribution of shares of the
Issuer, such payments payable from the past profits or other resources of
FMR including management fees paid to it by the Issuer.
11. Indemnification - The Issuer agrees to indemnify and hold harmless
Distributors and each of its directors and officers and each person, if
any, who controls Distributors within the meaning of Section 15 of the 1933
Act against any loss, liability, claim, damages or expense (including the
reasonable cost of investigating or defending any alleged loss, liability,
claim, damages, or expense and reasonable counsel fees incurred in
connection therewith) arising by reason of any person acquiring any shares,
based upon the ground that the registration statement, Prospectus,
Statement of Additional Information, shareholder reports or other
information filed or made public by the Issuer (as from time to time
amended) included an untrue statement of a material fact or omitted to
state a material fact required to be stated or necessary in order to make
the statements not misleading under the 1933 Act, or any other statute or
the common law. However, the Issuer does not agree to indemnify
Distributors or hold it harmless to the extent that the statement or
omission was made in reliance upon, and in conformity with, information
furnished to the Issuer by or on behalf of Distributors. In no case (i) is
the indemnity of the Issuer in favor of Distributors or any person
indemnified to be deemed to protect Distributors or any person against any
liability to the Issuer or its security holders to which Distributors or
such person would otherwise be subject by reason of wilful misfeasance, bad
faith or gross negligence in the performance of its duties or by reason of
its reckless disregard of its obligations and duties under this Agreement,
or (ii) is the Issuer to be liable under its indemnity agreement contained
in this paragraph with respect to any claim made against Distributors or
any person indemnified unless Distributors or person, as the case may be,
shall have notified the Issuer in writing of the claim within a reasonable
time after the summons or other first written notification giving
information of the nature of the claim shall have been served upon
Distributors or any such person (or after Distributors or such person shall
have received notice of service on any designated agent). However, failure
to notify the Issuer of any claim shall not relieve the Issuer from any
liability which it may have to Distributors or any person against whom such
action is brought otherwise than on account of its indemnity agreement
contained in this paragraph. The Issuer shall be entitled to participate
at its own expense in the defense, or, if it so elects, to assume the
defense of any suit brought to enforce any claims, but if the Issuer elects
to assume the defense, the defense shall be conducted by counsel chosen by
it and satisfactory to Distributors or person or persons, defendant or
defendants in the suit. In the event the Issuer elects to assume the
defense of any suit and retain counsel, Distributors, officers or directors
or controlling person or persons, defendant or defendants in the suit,
shall bear the fees and expenses of any additional counsel retained by
them. If the Issuer does not elect to assume the defense of any suit, it
will reimburse Distributors, officers or directors or controlling person or
persons, defendant or defendants in the suit, for the reasonable fees and
expenses of any counsel retained by them. The Issuer agrees to notify
Distributors promptly of the commencement of any litigation or proceedings
against it or any of its officers or trustees in connection with the
issuance or sale of any of the shares.
Distributors also covenants and agrees that it will indemnify and hold
harmless the Issuer and each of its Board members and officers and each
person, if any, who controls the Issuer within the meaning of Section 15 of
the 1933 Act, against any loss, liability, damages, claim or expense
(including the reasonable cost of investigating or defending any alleged
loss, liability, damages, claim or expense and reasonable counsel fees
incurred in connection therewith) arising by reason of any person acquiring
any shares, based upon the 1933 Act or any other statute or common law,
alleging any wrongful act of Distributors or any of its employees or
alleging that the registration statement, Prospectus, Statement of
Additional Information, shareholder reports or other information filed or
made public by the Issuer (as from time to time amended) included an untrue
statement of a material fact or omitted to state a material fact required
to be stated or necessary in order to make the statements not misleading,
insofar as the statement or omission was made in reliance upon, and in
conformity with information furnished to the Issuer by or on behalf of
Distributors. In no case (i) is the indemnity of Distributors in favor of
the Issuer or any person indemnified to be deemed to protect the Issuer or
any person against any liability to which the Issuer or such person would
otherwise be subject by reason of willful misfeasance, bad faith or gross
negligence in the performance of its duties or by reason of its reckless
disregard of its obligations and duties under this Agreement, or (ii) is
Distributors to be liable under its indemnity agreement contained in this
paragraph with respect to any claim made against the Issuer or any person
indemnified unless the Issuer or person, as the case may be, shall have
notified Distributors in writing of the claim within a reasonable time
after the summons or other first written notification giving information of
the nature of the claim shall have been served upon the Issuer or any such
person (or after the Issuer or such person shall have received notice of
service on any designated agent). However, failure to notify Distributors
of any claim shall not relieve Distributors from any liability which it may
have to the Issuer or any person against whom the action is brought
otherwise than on account of its indemnity agreement contained in this
paragraph. In the case of any notice to Distributors, it shall be entitled
to participate, at its own expense, in the defense or, if it so elects, to
assume the defense of any suit brought to enforce the claim, but if
Distributors elects to assume the defense, the defense shall be conducted
by counsel chosen by it and satisfactory to the Issuer, to its officers and
Board and to any controlling person or persons, defendant or defendants in
the suit. In the event that Distributors elects to assume the defense of
any suit and retain counsel, the Issuer or controlling persons, defendant
or defendants in the suit, shall bear the fees and expense of any
additional counsel retained by them. If Distributors does not elect to
assume the defense of any suit, it will reimburse the Issuer, officers and
Board or controlling person or persons, defendant or defendants in the
suit, for the reasonable fees and expenses of any counsel retained by them.
Distributors agrees to notify the Issuer promptly of the commencement of
any litigation or proceedings against it in connection with the issue and
sale of any of the shares.
12. Effective Date - This agreement shall be effective upon its execution,
and unless terminated as provided, shall continue in force until January
31, 1997 and thereafter from year to year, provided continuance is approved
annually by the vote of a majority of the Board members of the Issuer, and
by the vote of those Board members of the Issuer who are not "interested
persons" of the Issuer and, if a plan under Rule 12b-1 under the Investment
Company Act of 1940 is in effect, by the vote of those Board members of the
Issuer who are not "interested persons" of the Issuer and who are not
parties to the Distribution and Service Plan or this Agreement and have no
financial interest in the operation of the Distribution and Service Plan or
in any agreements related to the Distribution and Service Plan, cast in
person at a meeting called for the purpose of voting on the approval. This
Agreement shall automatically terminate in the event of its assignment. As
used in this paragraph, the terms "assignment" and "interested persons"
shall have the respective meanings specified in the Investment Company Act
of 1940 as now in effect or as hereafter amended. In addition to
termination by failure to approve continuance or by assignment, this
Agreement may at any time be terminated by either party upon not less than
sixty days' prior written notice to the other party.
13. Notice - Any notice required or permitted to be given by either party
to the other shall be deemed sufficient if sent by registered or certified
mail, postage prepaid, addressed by the party giving notice to the other
party at the last address furnished by the other party to the party giving
notice: if to the Issuer, at 82 Devonshire Street, Boston, Massachusetts,
and if to Distributors, at 82 Devonshire Street, Boston, Massachusetts.
14. Limitation of Liability - Distributors is expressly put on notice of
the limitation of shareholder liability as set forth in the Declaration of
Trust or other organizational document of the Issuer and agrees that the
obligations assumed by the Issuer under this contract shall be limited in
all cases to the Issuer and its assets. Distributors shall not seek
satisfaction of any such obligation from the shareholders or any
shareholder of the Issuer. Nor shall Distributors seek satisfaction of any
such obligation from the Trustees or any individual Trustee of the Issuer.
Distributors understands that the rights and obligations of each series of
shares of the Issuer under the Issuer's Declaration of Trust or other
organizational document are separate and distinct from those of any and all
other series.
15. This agreement shall be governed by, and construed in accordance with,
the laws of the Commonwealth of Massachusetts, without giving effect to the
choice of laws provisions thereof.
IN WITNESS WHEREOF, the Issuer has executed this instrument in its name
and behalf, and its seal affixed, by one of its officers duly authorized,
and Distributors has executed this instrument in its name and behalf by one
of its officers duly authorized, as of the day and year first above
written.
FIDELITY SELECT PORTFOLIOS
By /s/ J. Gary Burkhead
FIDELITY DISTRIBUTORS CORPORATION
By /s/ Paul J. Hondros
Exhibit 11
CONSENT OF INDEPENDENT ACCOUNTANTS
We hereby consent to the incorporation by reference, into the Prospectus
and Statement of Additional Information in Post-Effective Amendment No. 59
to the Registration Statement on Form N-1A of Fidelity Select Portfolios,
of our report dated April 18, 1997 on the financial statements and
financial highlights included in the February 28, 1997 Annual Report to
Shareholders of Fidelity Select Portfolios.
We further consent to the references to our Firm under the headings
"Financial Highlights" in the Prospectus and "Auditor" in the Statement of
Additional Information.
/s/PRICE WATERHOUSE LLP
PRICE WATERHOUSE LLP
Boston, Massachusetts
April 22, 1997
[ARTICLE] 6
[CIK] 0000320351
[NAME] Fidelity Select Portfolios
[SERIES]
[NUMBER] 11
[NAME] Select-Energy
[MULTIPLIER] 1,000
<TABLE>
<S>
<C>
[PERIOD-TYPE] year
[FISCAL-YEAR-END] Feb-28-1997
[PERIOD-END] feb-28-1997
[INVESTMENTS-AT-COST] 195,064
[INVESTMENTS-AT-VALUE] 202,045
[RECEIVABLES] 7,348
[ASSETS-OTHER] 0
[OTHER-ITEMS-ASSETS] 0
[TOTAL-ASSETS] 209,393
[PAYABLE-FOR-SECURITIES] 0
[SENIOR-LONG-TERM-DEBT] 0
[OTHER-ITEMS-LIABILITIES] 6,128
[TOTAL-LIABILITIES] 6,128
[SENIOR-EQUITY] 0
[PAID-IN-CAPITAL-COMMON] 179,721
[SHARES-COMMON-STOCK] 9,538
[SHARES-COMMON-PRIOR] 6,310
[ACCUMULATED-NII-CURRENT] 429
[OVERDISTRIBUTION-NII] 0
[ACCUMULATED-NET-GAINS] 16,134
[OVERDISTRIBUTION-GAINS] 0
[ACCUM-APPREC-OR-DEPREC] 6,981
[NET-ASSETS] 203,265
[DIVIDEND-INCOME] 3,092
[INTEREST-INCOME] 723
[OTHER-INCOME] 0
[EXPENSES-NET] 2,728
[NET-INVESTMENT-INCOME] 1,087
[REALIZED-GAINS-CURRENT] 20,637
[APPREC-INCREASE-CURRENT] (2,356)
[NET-CHANGE-FROM-OPS] 19,368
[EQUALIZATION] 0
[DISTRIBUTIONS-OF-INCOME] 1,000
[DISTRIBUTIONS-OF-GAINS] 9,661
[DISTRIBUTIONS-OTHER] 0
[NUMBER-OF-SHARES-SOLD] 15,419
[NUMBER-OF-SHARES-REDEEMED] 12,699
[SHARES-REINVESTED] 508
[NET-CHANGE-IN-ASSETS] 83,589
[ACCUMULATED-NII-PRIOR] 486
[ACCUMULATED-GAINS-PRIOR] 7,398
[OVERDISTRIB-NII-PRIOR] 0
[OVERDIST-NET-GAINS-PRIOR] 0
[GROSS-ADVISORY-FEES] 1,067
[INTEREST-EXPENSE] 1
[GROSS-EXPENSE] 2,766
[AVERAGE-NET-ASSETS] 176,396
[PER-SHARE-NAV-BEGIN] 18.970
[PER-SHARE-NII] .130
[PER-SHARE-GAIN-APPREC] 3.590
[PER-SHARE-DIVIDEND] .130
[PER-SHARE-DISTRIBUTIONS] 1.310
[RETURNS-OF-CAPITAL] 0
[PER-SHARE-NAV-END] 21.310
[EXPENSE-RATIO] 157
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0
</TABLE>
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 21
<NAME> Select-Precious Metals
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
<INVESTMENTS-AT-COST> 303,110
<INVESTMENTS-AT-VALUE> 340,692
<RECEIVABLES> 21,789
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 362,481
<PAYABLE-FOR-SECURITIES> 28,275
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 8,620
<TOTAL-LIABILITIES> 36,895
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 290,085
<SHARES-COMMON-STOCK> 16,611
<SHARES-COMMON-PRIOR> 22,286
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 45
<ACCUMULATED-NET-GAINS> (2,037)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 37,583
<NET-ASSETS> 325,586
<DIVIDEND-INCOME> 4,552
<INTEREST-INCOME> 625
<OTHER-INCOME> 0
<EXPENSES-NET> 5,358
<NET-INVESTMENT-INCOME> (181)
<REALIZED-GAINS-CURRENT> 16,412
<APPREC-INCREASE-CURRENT> (43,173)
<NET-CHANGE-FROM-OPS> (26,942)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 1,023
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 22,221
<NUMBER-OF-SHARES-REDEEMED> 27,946
<SHARES-REINVESTED> 49
<NET-CHANGE-IN-ASSETS> (141,610)
<ACCUMULATED-NII-PRIOR> 847
<ACCUMULATED-GAINS-PRIOR> (18,136)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,005
<INTEREST-EXPENSE> 3
<GROSS-EXPENSE> 5,379
<AVERAGE-NET-ASSETS> 331,984
<PER-SHARE-NAV-BEGIN> 20.960
<PER-SHARE-NII> (.010)
<PER-SHARE-GAIN-APPREC> (1.420)
<PER-SHARE-DIVIDEND> .050
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 19.600
<EXPENSE-RATIO> 162
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<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
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<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 31
<NAME> Select-Technology
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
<INVESTMENTS-AT-COST> 489,115
<INVESTMENTS-AT-VALUE> 500,279
<RECEIVABLES> 47,650
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 547,929
<PAYABLE-FOR-SECURITIES> 32,169
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 37,316
<TOTAL-LIABILITIES> 69,485
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 379,271
<SHARES-COMMON-STOCK> 8,292
<SHARES-COMMON-PRIOR> 8,835
<ACCUMULATED-NII-CURRENT> 0
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 88,008
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 11,165
<NET-ASSETS> 478,444
<DIVIDEND-INCOME> 757
<INTEREST-INCOME> 2,572
<OTHER-INCOME> 0
<EXPENSES-NET> 6,654
<NET-INVESTMENT-INCOME> (3,325)
<REALIZED-GAINS-CURRENT> 119,116
<APPREC-INCREASE-CURRENT> (64,794)
<NET-CHANGE-FROM-OPS> 50,997
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 0
<DISTRIBUTIONS-OF-GAINS> 30,475
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 8,803
<NUMBER-OF-SHARES-REDEEMED> 9,888
<SHARES-REINVESTED> 542
<NET-CHANGE-IN-ASSETS> (4,582)
<ACCUMULATED-NII-PRIOR> 0
<ACCUMULATED-GAINS-PRIOR> 31,673
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 2,800
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 6,894
<AVERAGE-NET-ASSETS> 463,106
<PER-SHARE-NAV-BEGIN> 54.670
<PER-SHARE-NII> (.390)
<PER-SHARE-GAIN-APPREC> 6.950
<PER-SHARE-DIVIDEND> 0
<PER-SHARE-DISTRIBUTIONS> 3.680
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 57.700
<EXPENSE-RATIO> 149
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 41
<NAME> Select-Health Care
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
<INVESTMENTS-AT-COST> 1,095,588
<INVESTMENTS-AT-VALUE> 1,369,053
<RECEIVABLES> 23,844
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 1,392,897
<PAYABLE-FOR-SECURITIES> 1,158
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 19,185
<TOTAL-LIABILITIES> 20,343
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 967,142
<SHARES-COMMON-STOCK> 13,398
<SHARES-COMMON-PRIOR> 15,188
<ACCUMULATED-NII-CURRENT> 1,993
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 129,963
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 273,456
<NET-ASSETS> 1,372,554
<DIVIDEND-INCOME> 15,987
<INTEREST-INCOME> 7,324
<OTHER-INCOME> 0
<EXPENSES-NET> 16,674
<NET-INVESTMENT-INCOME> 6,637
<REALIZED-GAINS-CURRENT> 276,138
<APPREC-INCREASE-CURRENT> (55,054)
<NET-CHANGE-FROM-OPS> 227,721
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 7,843
<DISTRIBUTIONS-OF-GAINS> 188,057
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 4,420
<NUMBER-OF-SHARES-REDEEMED> 8,234
<SHARES-REINVESTED> 2,024
<NET-CHANGE-IN-ASSETS> (153,355)
<ACCUMULATED-NII-PRIOR> 4,464
<ACCUMULATED-GAINS-PRIOR> 63,002
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 7,661
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 16,857
<AVERAGE-NET-ASSETS> 1,266,726
<PER-SHARE-NAV-BEGIN> 100.470
<PER-SHARE-NII> .520
<PER-SHARE-GAIN-APPREC> 18.010
<PER-SHARE-DIVIDEND> .650
<PER-SHARE-DISTRIBUTIONS> 15.950
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 102.450
<EXPENSE-RATIO> 133
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
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<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 51
<NAME> Select-Utilities Growth
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
<INVESTMENTS-AT-COST> 208,290
<INVESTMENTS-AT-VALUE> 256,947
<RECEIVABLES> 839
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 257,786
<PAYABLE-FOR-SECURITIES> 0
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 942
<TOTAL-LIABILITIES> 942
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 198,909
<SHARES-COMMON-STOCK> 5,587
<SHARES-COMMON-PRIOR> 6,199
<ACCUMULATED-NII-CURRENT> 1,654
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 7,624
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 48,657
<NET-ASSETS> 256,844
<DIVIDEND-INCOME> 7,189
<INTEREST-INCOME> 406
<OTHER-INCOME> 0
<EXPENSES-NET> 3,484
<NET-INVESTMENT-INCOME> 4,111
<REALIZED-GAINS-CURRENT> 12,599
<APPREC-INCREASE-CURRENT> 21,791
<NET-CHANGE-FROM-OPS> 38,501
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> 3,870
<DISTRIBUTIONS-OF-GAINS> 20,287
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,987
<NUMBER-OF-SHARES-REDEEMED> 4,169
<SHARES-REINVESTED> 570
<NET-CHANGE-IN-ASSETS> (9,923)
<ACCUMULATED-NII-PRIOR> 2,165
<ACCUMULATED-GAINS-PRIOR> 22,424
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1,440
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 3,508
<AVERAGE-NET-ASSETS> 238,175
<PER-SHARE-NAV-BEGIN> 43.030
<PER-SHARE-NII> .730
<PER-SHARE-GAIN-APPREC> 6.410
<PER-SHARE-DIVIDEND> .700
<PER-SHARE-DISTRIBUTIONS> 3.540
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 45.970
<EXPENSE-RATIO> 147
<AVG-DEBT-OUTSTANDING> 0
<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
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<CIK> 0000320351
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<SERIES>
<NUMBER> 61
<NAME> Select-Financial Services
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
<INVESTMENTS-AT-COST> 353,085
<INVESTMENTS-AT-VALUE> 434,582
<RECEIVABLES> 4,180
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 438,762
<PAYABLE-FOR-SECURITIES> 8,602
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 3,736
<TOTAL-LIABILITIES> 12,338
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 319,358
<SHARES-COMMON-STOCK> 5,142
<SHARES-COMMON-PRIOR> 4,117
<ACCUMULATED-NII-CURRENT> 1,356
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 24,213
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 81,497
<NET-ASSETS> 426,424
<DIVIDEND-INCOME> 5,424
<INTEREST-INCOME> 1,294
<OTHER-INCOME> 0
<EXPENSES-NET> 3,906
<NET-INVESTMENT-INCOME> 2,812
<REALIZED-GAINS-CURRENT> 37,306
<APPREC-INCREASE-CURRENT> 40,110
<NET-CHANGE-FROM-OPS> 80,228
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<NAME> Fidelity Select Portfolios
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<NAME> Select-Leisure
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<NAME> Fidelity Select Portfolios
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<NAME> Select-Defense and Aerospace
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<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
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<NAME> Select-Brokerage and Investment Management
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<C>
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<TABLE> <S> <C>
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<NAME> Fidelity Select Portfolios
<SERIES>
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<NAME> Select-Chemicals
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<S>
<C>
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<TABLE> <S> <C>
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<CIK> 0000320351
<NAME> Fidelity Select Portfolios
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<NUMBER> 111
<NAME> Select-Computer
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<C>
<PERIOD-TYPE> year
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 121
<NAME> Select-Electronics
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<S>
<C>
<PERIOD-TYPE> year
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<PERIOD-END> feb-28-1997
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<PER-SHARE-NII> (.170)
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 131
<NAME> Select-Food and Agriculture
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<S>
<C>
<PERIOD-TYPE> year
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<PERIOD-END> feb-28-1997
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<TABLE> <S> <C>
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<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 141
<NAME> Select-Software and Computers
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 151
<NAME> Select-Telecommunication
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
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<PERIOD-END> feb-28-1997
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
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<NAME> Fidelity Select Portfolios
<SERIES>
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<C>
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 98
<NAME> Select-Multimedia
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
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<PERIOD-END> feb-28-1997
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<ACCUM-APPREC-OR-DEPREC> (61)
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<NET-CHANGE-IN-ASSETS> (40,799)
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 97
<NAME> Select-Industrial Equipment
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
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<PERIOD-END> feb-28-1997
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<SHARES-COMMON-PRIOR> 5,477
<ACCUMULATED-NII-CURRENT> 126
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<ACCUMULATED-NET-GAINS> 11,583
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 5,250
<NET-ASSETS> 102,882
<DIVIDEND-INCOME> 1,181
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<EXPENSES-NET> 1,335
<NET-INVESTMENT-INCOME> 228
<REALIZED-GAINS-CURRENT> 20,831
<APPREC-INCREASE-CURRENT> (7,538)
<NET-CHANGE-FROM-OPS> 13,521
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<DISTRIBUTIONS-OF-INCOME> 140
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<NUMBER-OF-SHARES-SOLD> 3,536
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<SHARES-REINVESTED> 542
<NET-CHANGE-IN-ASSETS> (34,638)
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<GROSS-EXPENSE> 1,401
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<PER-SHARE-NAV-BEGIN> 25.110
<PER-SHARE-NII> .060
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 96
<NAME> Select-Medical Delivery
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
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<PAID-IN-CAPITAL-COMMON> 143,109
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<ACCUMULATED-NET-GAINS> 23,679
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 25,597
<NET-ASSETS> 192,385
<DIVIDEND-INCOME> 670
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<EXPENSES-NET> 3,304
<NET-INVESTMENT-INCOME> (1,816)
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<SHARES-REINVESTED> 921
<NET-CHANGE-IN-ASSETS> (103,104)
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<GROSS-EXPENSE> 3,403
<AVERAGE-NET-ASSETS> 216,347
<PER-SHARE-NAV-BEGIN> 29.000
<PER-SHARE-NII> (.230)
<PER-SHARE-GAIN-APPREC> 2.920
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<PER-SHARE-NAV-END> 28.290
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 95
<NAME> Select-Construction and Housing
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
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<INVESTMENTS-AT-VALUE> 31,609
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<TOTAL-LIABILITIES> 2,787
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<PAID-IN-CAPITAL-COMMON> 20,910
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<SHARES-COMMON-PRIOR> 2,182
<ACCUMULATED-NII-CURRENT> 68
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<ACCUMULATED-NET-GAINS> 8,693
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 910
<NET-ASSETS> 30,581
<DIVIDEND-INCOME> 689
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<NET-INVESTMENT-INCOME> 181
<REALIZED-GAINS-CURRENT> 10,159
<APPREC-INCREASE-CURRENT> (2,418)
<NET-CHANGE-FROM-OPS> 7,922
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<DISTRIBUTIONS-OF-GAINS> 3,094
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<SHARES-REINVESTED> 161
<NET-CHANGE-IN-ASSETS> (12,087)
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<PER-SHARE-NAV-BEGIN> 19.560
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<PER-SHARE-NAV-END> 22.000
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 94
<NAME> Select-Industrial Materials
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
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<PERIOD-END> feb-28-1997
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<SHARES-COMMON-PRIOR> 3,311
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<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 3,403
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<EXPENSES-NET> 1,474
<NET-INVESTMENT-INCOME> 220
<REALIZED-GAINS-CURRENT> 8,999
<APPREC-INCREASE-CURRENT> 1,202
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<NUMBER-OF-SHARES-SOLD> 4,148
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<SHARES-REINVESTED> 212
<NET-CHANGE-IN-ASSETS> (19,876)
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<ACCUMULATED-GAINS-PRIOR> 2,154
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<GROSS-EXPENSE> 1,510
<AVERAGE-NET-ASSETS> 97,881
<PER-SHARE-NAV-BEGIN> 26.070
<PER-SHARE-NII> .060
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<PER-SHARE-NAV-END> 27.660
<EXPENSE-RATIO> 154
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<AVG-DEBT-PER-SHARE> 0
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 93
<NAME> Select-Paper and Forest Products
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
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<PAID-IN-CAPITAL-COMMON> 18,614
<SHARES-COMMON-STOCK> 901
<SHARES-COMMON-PRIOR> 1,312
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<ACCUMULATED-NET-GAINS> 938
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (22)
<NET-ASSETS> 19,484
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<NET-INVESTMENT-INCOME> 13
<REALIZED-GAINS-CURRENT> 1,735
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<NUMBER-OF-SHARES-SOLD> 3,915
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<SHARES-REINVESTED> 119
<NET-CHANGE-IN-ASSETS> (7,787)
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<ACCUMULATED-GAINS-PRIOR> 5,367
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<INTEREST-EXPENSE> 1
<GROSS-EXPENSE> 705
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<PER-SHARE-NAV-BEGIN> 20.780
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 92
<NAME> Select-Regional Banks
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
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<OVERDISTRIBUTION-NII> 0
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<NUMBER-OF-SHARES-SOLD> 27,686
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<GROSS-EXPENSE> 6,086
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 89
<NAME> Select-Transportation
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
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<NET-ASSETS> 8,890
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<NET-INVESTMENT-INCOME> (73)
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<APPREC-INCREASE-CURRENT> (640)
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<SHARES-REINVESTED> 16
<NET-CHANGE-IN-ASSETS> (2,555)
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<GROSS-EXPENSE> 340
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<PER-SHARE-NII> (.130)
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<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000320351
<NAME> Fidelity Select Portfolios
<SERIES>
<NUMBER> 88
<NAME> Select-Environmental Services
<MULTIPLIER> 1,000
<S>
<C>
<PERIOD-TYPE> year
<FISCAL-YEAR-END> Feb-28-1997
<PERIOD-END> feb-28-1997
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<SHARES-COMMON-PRIOR> 2,222
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<ACCUMULATED-NET-GAINS> (847)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> (1,151)
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<NET-INVESTMENT-INCOME> (244)
<REALIZED-GAINS-CURRENT> (600)
<APPREC-INCREASE-CURRENT> (1,590)
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