FIDELITY SELECT PRECIOUS METALS AND MINERALS PORTFOLIO
A FUND OF
FIDELITY SELECT PORTFOLIOS(registered trademark)
82 DEVONSHIRE STREET, BOSTON, MASSACHUSETTS 02109
1-800-544-8888
NOTICE OF SPECIAL MEETING OF SHAREHOLDERS
To the Shareholders of Fidelity Select Precious Metals and Minerals
Portfolio:
NOTICE IS HEREBY GIVEN that a Special Meeting of Shareholders (the
Meeting) of Fidelity Select Precious Metals and Minerals Portfolio
(Precious Metals and Minerals Portfolio) will be held at an office of
Fidelity Select Portfolios (the trust), 27 State Street, 10th Floor,
Boston, Massachusetts 02109 on February 16, 2000, at 9:00 a.m. Eastern
time. The purpose of the Meeting is to consider and act upon the
following proposal, and to transact such other business as may
properly come before the Meeting or any adjournments thereof.
(1) To approve an Agreement and Plan of Reorganization between
Precious Metals and Minerals Portfolio and Fidelity Select Gold
Portfolio (Gold Portfolio), another fund of the trust, providing for
the transfer of all of the assets of Precious Metals and Minerals
Portfolio to Gold Portfolio in exchange solely for shares of
beneficial interest of Gold Portfolio and the assumption by Gold
Portfolio of Precious Metals and Minerals Portfolio's liabilities,
followed by the distribution of Gold Portfolio shares to shareholders
of Precious Metals and Minerals Portfolio in liquidation of Precious
Metals and Minerals Portfolio.
The Board of Trustees has fixed the close of business on December 20,
1999 as the record date for the determination of the shareholders of
Precious Metals and Minerals Portfolio entitled to notice of, and to
vote at, such Meeting and any adjournments thereof.
By order of the Board of Trustees,
ERIC D. ROITER, Secretary
December 20, 1999
YOUR VOTE IS IMPORTANT -
PLEASE RETURN YOUR PROXY CARD PROMPTLY.
SHAREHOLDERS ARE INVITED TO ATTEND THE MEETING IN PERSON. ANY
SHAREHOLDER WHO DOES NOT EXPECT TO ATTEND THE MEETING IS URGED TO
INDICATE VOTING INSTRUCTIONS ON THE ENCLOSED PROXY CARD, DATE AND SIGN
IT, AND RETURN IT IN THE ENVELOPE PROVIDED, WHICH NEEDS NO POSTAGE IF
MAILED IN THE UNITED STATES. IN ORDER TO AVOID UNNECESSARY EXPENSE, WE
ASK YOUR COOPERATION IN MAILING YOUR PROXY CARD PROMPTLY, NO MATTER
HOW LARGE OR SMALL YOUR HOLDINGS MAY BE.
INSTRUCTIONS FOR EXECUTING PROXY CARD
The following general rules for executing proxy cards may be of
assistance to you and help avoid the time and expense involved in
validating your vote if you fail to execute your proxy card properly.
1. INDIVIDUAL ACCOUNTS: Your name should be signed exactly as it
appears in the registration on the proxy card.
2. JOINT ACCOUNTS: Either party may sign, but the name of the party
signing should conform exactly to a name shown in the registration.
3. ALL OTHER ACCOUNTS should show the capacity of the individual
signing. This can be shown either in the form of the account
registration itself or by the individual executing the proxy card. For
example:
REGISTRATION VALID SIGNATURE
A. 1) ABC Corp. John Smith, Treasurer
2) ABC Corp. John Smith, Treasurer
c/o John Smith, Treasurer
B. 1) ABC Corp. Profit Sharing Plan Ann B. Collins, Trustee
2) ABC Trust Ann B. Collins, Trustee
3) Ann B. Collins, Trustee Ann B. Collins, Trustee
u/t/d 12/28/78
C. 1) Anthony B. Craft, Cust. Anthony B. Craft
f/b/o Anthony B. Craft, Jr.
UGMA
FIDELITY SELECT PRECIOUS METALS AND MINERALS PORTFOLIO
A FUND OF
FIDELITY SELECT PORTFOLIOS(registered trademark)
82 DEVONSHIRE STREET, BOSTON, MASSACHUSETTS 02109
1-800-544-8888
PROXY STATEMENT AND PROSPECTUS
DECEMBER 20, 1999
This Proxy Statement and Prospectus (Proxy Statement) is being
furnished to shareholders of Fidelity Select Precious Metals and
Minerals Portfolio (Precious Metals and Minerals Portfolio), a fund of
Fidelity Select Portfolios (the trust), in connection with the
solicitation of proxies by the trust's Board of Trustees for use at
the Special Meeting of Shareholders of Precious Metals and Minerals
Portfolio and at any adjournments thereof (the Meeting). The Meeting
will be held on Wednesday, February 16, 2000, at 9:00 a.m. Eastern
time at 27 State Street, 10th Floor, Boston, Massachusetts 02109, an
office of the trust.
As more fully described in the Proxy Statement, the purpose of the
Meeting is to vote on a proposed reorganization (Reorganization).
Pursuant to an Agreement and Plan of Reorganization (the Agreement),
Precious Metals and Minerals Portfolio would transfer all of its
assets to Fidelity Select Gold Portfolio (Gold Portfolio), another
fund of the trust, in exchange solely for shares of beneficial
interest of Gold Portfolio and the assumption by Gold Portfolio of
Precious Metals and Minerals Portfolio's liabilities. The number of
shares to be issued in the proposed Reorganization will be based upon
the relative net asset values of the funds last determined on the day
of the exchange. As provided in the Agreement, Precious Metals and
Minerals Portfolio will distribute shares of Gold Portfolio to its
shareholders in liquidation of Precious Metals and Minerals Portfolio
on February 29, 2000, or such other date as the parties may agree (the
Closing Date).
Gold Portfolio, is an equity fund, a non-diversified fund of Fidelity
Select Portfolios, an open-end management investment company organized
as a Massachusetts business trust on November 20, 1980. Gold
Portfolio's investment objective is to seek capital appreciation by
investing primarily in common stocks and in certain precious metals.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, NOR HAS THE SECURITIES AND
EXCHANGE COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROXY
STATEMENT AND PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A
CRIMINAL OFFENSE.
This Proxy Statement, which should be retained for future reference,
sets forth concisely the information about the Reorganization and Gold
Portfolio that a shareholder should know before voting on the proposed
Reorganization. The Statement of Additional Information dated December
20, 1999 relating to this Proxy Statement has been filed with the
Securities and Exchange Commission (Commission) and is incorporated
herein by reference. This Proxy Statement is accompanied by the
Prospectus dated April 29, 1999 and supplemented December 13 ,
1999, which offers shares of Gold Portfolio and Precious Metals and
Minerals Portfolio. The Statement of Additional Information for Gold
Portfolio and Precious Metals and Minerals Portfolio dated April 29,
1999 and supplemented November 1, 1999 is available upon
request. Attachment 1 contains excerpts from the Annual Report of Gold
Portfolio dated February 28, 1999. The Prospectus and Statement of
Additional Information for Gold Portfolio and Precious Metals and
Minerals Portfolio have been filed with the Commission and are
incorporated herein by reference. Copies of these documents may be
obtained without charge by contacting the trust at Fidelity
Distributors Corporation, 82 Devonshire Street, Boston, Massachusetts
02109 or by calling 1-800-544-8888.
TABLE OF CONTENTS
Voting Information 1
Synopsis 2
Comparison of Other Policies of The Funds 6
Comparison of Principal Risk Factors 7
The Proposed Transaction 8
Additional Information About Fidelity Select Gold Portfolio 11
Miscellaneous 12
Attachment 1. Excerpts from the Annual Report of Fidelity
Select Gold Portfolio Dated February 28, 1999 13
Exhibit 1. Form of Agreement and Plan of Reorganization
of Fidelity Select Precious Metals and Minerals Portfolio 15
PROXY STATEMENT AND PROSPECTUS
SPECIAL MEETING OF SHAREHOLDERS OF FIDELITY SELECT PRECIOUS METALS AND
MINERALS PORTFOLIO A FUND OF FIDELITY SELECT PORTFOLIOS(registered
trademark)
TO BE HELD ON FEBRUARY 16, 2000
82 DEVONSHIRE STREET, BOSTON, MASSACHUSETTS 02109
1-800-544-8888
VOTING INFORMATION
This Proxy Statement and Prospectus (Proxy Statement) is furnished in
connection with a solicitation of proxies made by, and on behalf of,
the Board of Trustees of Fidelity Select Portfolios (the trust) to be
used at the Special Meeting of Shareholders of Fidelity Select
Precious Metals and Minerals Portfolio (Precious Metals and Minerals
Portfolio) and at any adjournments thereof (the Meeting), to be held
on Wednesday, February 16, 2000, at 9:00 a.m. Eastern time at 27 State
Street, 10th Floor, Boston, Massachusetts 02109, an office of the
trust and Fidelity Management & Research Company (FMR), the fund's
investment adviser.
The purpose of the Meeting is set forth in the accompanying Notice.
The solicitation is made primarily by the mailing of this Proxy
Statement and the accompanying proxy card on or about December 20,
1999. Supplementary solicitations may be made by mail, telephone,
telegraph, facsimile, electronic means or by personal interview by
representatives of the trust. In addition, D.F. King & Co., Inc.
and/or Management Information Services Corp. may be paid on a per-call
basis to solicit shareholders on behalf of the fund at an anticipated
cost of approximately $ 3,000 . The expenses in connection with
preparing this Proxy Statement and its enclosures and of all
solicitations will be paid by the fund . Expenses exceeding the
fund's voluntary expense cap will be paid by FMR. The fund will
reimburse brokerage firms and others for their reasonable expenses in
forwarding solicitation material to the beneficial owners of shares.
If the enclosed proxy card is executed and returned, it may
nevertheless be revoked at any time prior to its use by written
notification received by the trust, by the execution of a later-dated
proxy card, or by attending the Meeting and voting in person.
All proxy cards solicited by the Board of Trustees that are properly
executed and received by the Secretary prior to the Meeting, and which
are not revoked, will be voted at the Meeting. Shares represented by
such proxies will be voted in accordance with the instructions
thereon. If no specification is made on a proxy card, it will be voted
FOR the matters specified on the proxy card. Only proxies that are
voted will be counted toward establishing a quorum. Broker non-votes
are not considered voted for this purpose. Shareholders should note
that while votes to ABSTAIN will count toward establishing a quorum,
passage of any proposal being considered at the Meeting will occur
only if a sufficient number of votes are cast FOR the proposal.
Accordingly, votes to ABSTAIN and votes AGAINST will have the same
effect in determining whether the proposal is approved.
Precious Metals and Minerals Portfolio may also arrange to have votes
recorded by telephone. D.F. King & Co., Inc. may be paid on a per-call
basis for vote-by-phone solicitations on behalf of the fund at an
anticipated cost of approximately $ 4,000 . The expenses in
connection with telephone voting will be paid by the fund .
Expenses exceeding the fund's voluntary expense cap will be paid by
FMR. If the fund records votes by telephone, it will use procedures
designed to authenticate shareholders' identities, to allow
shareholders to authorize the voting of their shares in accordance
with their instructions, and to confirm that their instructions have
been properly recorded. Proxies given by telephone may be revoked at
any time before they are voted in the same manner that proxies voted
by mail may be revoked.
If a quorum is not present at the Meeting, or if a quorum is present
at the Meeting but sufficient votes to approve one or more of the
proposed items are not received, or if other matters arise requiring
shareholder attention, the persons named as proxy agents may propose
one or more adjournments of the Meeting to permit further solicitation
of proxies. Any such adjournment will require the affirmative vote of
a majority of those shares present at the Meeting or represented by
proxy. When voting on a proposed adjournment, the persons named as
proxy agents will vote FOR the proposed adjournment all shares that
they are entitled to vote with respect to each item, unless directed
to vote AGAINST the item, in which case such shares will be voted
against the proposed adjournment with respect to that item. A
shareholder vote may be taken on one or more of the items in this
Proxy Statement or on any other business properly presented at the
Meeting prior to such adjournment if sufficient votes have been
received and it is otherwise appropriate.
On September 30, 1999, there were 16,789,285 and 15,859,749 shares
issued and outstanding for Precious Metals and Minerals Portfolio and
Fidelity Select Gold Portfolio (Gold Portfolio), respectively.
Precious Metals and Minerals Portfolio shareholders of record at the
close of business on December 20, 1999 will be entitled to vote at the
Meeting. Each such shareholder will be entitled to one vote for each
dollar of net asset value held on that date.
As of September 30, 1999, the Trustees, Members of the Advisory
Board, and officers of each fund owned, in the aggregate, less than 1%
of each fund's total outstanding shares.
To the knowledge of the trust and Fidelity Select Portfolios, no
shareholder owned of record or beneficially 5% or more of the
outstanding shares of each fund on that date. If the Reorganization
became effective on September 30, 1999, it is not anticipated that any
shareholders will own of record or beneficially 5% or more of the
outstanding shares of the combined fund.
VOTE REQUIRED: APPROVAL OF THE REORGANIZATION REQUIRES THE AFFIRMATIVE
VOTE OF A "MAJORITY OF THE OUTSTANDING VOTING SECURITIES" OF PRECIOUS
METALS AND MINERALS PORTFOLIO. UNDER THE INVESTMENT COMPANY ACT OF
1940 (THE 1940 ACT), THE VOTE OF A "MAJORITY OF THE OUTSTANDING VOTING
SECURITIES" MEANS THE AFFIRMATIVE VOTE OF THE LESSER OF (A) 67% OR
MORE OF THE VOTING SECURITIES PRESENT AT THE MEETING OR REPRESENTED BY
PROXY IF THE HOLDERS OF MORE THAN 50% OF THE OUTSTANDING VOTING
SECURITIES ARE PRESENT OR REPRESENTED BY PROXY OR (B) MORE THAN 50% OF
THE OUTSTANDING VOTING SECURITIES. BROKER NON-VOTES ARE NOT CONSIDERED
"PRESENT" FOR THIS PURPOSE.
SYNOPSIS
The following is a summary of certain information contained elsewhere
in this Proxy Statement, in the Agreement, and in the Prospectus of
Precious Metals and Minerals Portfolio and Gold Portfolio, which are
incorporated herein by this reference. Shareholders should read the
entire Proxy Statement and the Prospectus of Gold Portfolio carefully
for more complete information.
The proposed reorganization (the Reorganization) would merge Precious
Metals and Minerals Portfolio into Gold Portfolio, an equity fund also
managed by FMR. If the Reorganization is approved, Precious Metals and
Minerals Portfolio will cease to exist and current shareholders of the
fund will become shareholders of Gold Portfolio instead.
INVESTMENT OBJECTIVES AND POLICIES
The following summarizes the investment objective and policy
differences, if any, between Precious Metals and Minerals Portfolio
and Gold Portfolio.
Precious Metals and Minerals Portfolio and Gold Portfolio have
similar investment objectives and policies. Each fund's investment
objective is to seek capital appreciation by investing primarily in
common stocks and in certain precious metals. 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. 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 main difference between the funds is their policies of normally
investing at least 80% of fund assets in a particular industry or
group of industries. Precious Metals and Minerals Portfolio normally
invests at least 80% of its assets in securities of companies
principally engaged in exploration, mining, processing, or dealing in
gold, silver, platinum, diamonds, or other precious metals and
minerals, and in precious metals. Gold Portfolio normally invests at
least 80% of its assets in securities of companies principally engaged
in gold-related activities, and in gold bullion or coins. Precious
Metals and Minerals Portfolio's investment policy includes companies
principally engaged in activities related to platinum, silver,
diamonds and other non-gold precious metals and minerals, while Gold
Portfolio's does not.
EXPENSE STRUCTURES
The funds have identical expense structures.
Each fund pays its management fee and other expenses separately. Each
fund's management fee and other expenses, as a percentage of their
respective average net assets, vary from year to year. Precious Metals
and Minerals Portfolio's and Gold Portfolio's total operating expenses
(the sum of their respective management fee and other expenses) were
1.75% and 1.54%, respectively, of each fund's average net assets for
the 12 months ended August 31, 1999. If the Reorganization is
approved, FMR has agreed to limit the combined fund's total operating
expenses to the lower of the two funds' expense ratios for the 12
months ended August 31, 1999 (1.54% of its average net assets) through
February 28, 2001 (excluding interest, taxes, securities lending
costs , brokerage commissions and extraordinary expenses). After
that date, the combined fund's expenses could increase.
The funds also have identical fee structures. Each fund has a maximum
front-end sales charge of 3.00%. Each fund also has a redemption fee
of $7.50 or 0.75%, depending on how long shareholders held their
shares, which is deducted from the redemption amount when they sell
their shares. For fund shares held 29 days or less, the redemption fee
is equal to 0.75% of the redemption amount. For fund shares held 30
days or more, the redemption fee is equal to the lesser of $7.50 or
0.75% of the redemption amount. Shareholders of each fund may also pay
a $7.50 fee for each exchange out of the funds, unless shareholders
place their transaction through Fidelity's automated exchange
services.
In sum, the proposed merger would provide Precious Metals and
Minerals Portfolio shareholders with the opportunity to participate in
a larger fund with a similar investment objective, strategies, and
expenses guaranteed to be lower than Precious Metals and Minerals
Portfolio's for a period of approximately one year.
The Board of Trustees believes that the Reorganization would benefit
Precious Metals and Minerals Portfolio shareholders and recommends
that shareholders vote in favor of the Reorganization.
THE PROPOSED REORGANIZATION
Shareholders of Precious Metals and Minerals Portfolio will be asked
at the Meeting to vote upon and approve the Reorganization and the
Agreement, which provide for the acquisition by Gold Portfolio of all
of the assets of Precious Metals and Minerals Portfolio in exchange
solely for shares of Gold Portfolio and the assumption by Gold
Portfolio of the liabilities of Precious Metals and Minerals
Portfolio. Precious Metals and Minerals Portfolio will then distribute
the shares of Gold Portfolio to its respective shareholders, so that
each shareholder will receive the number of full and fractional shares
of Gold Portfolio equal in value to the aggregate net asset value of
the shareholder's shares of Precious Metals and Minerals Portfolio as
last determined on the Closing Date (defined below). The exchange of
Precious Metals and Minerals Portfolio's assets for Gold Portfolio's
shares will occur as of the close of business of the New York Stock
Exchange (NYSE) on February 29, 2000, or such other time and date as
the parties may agree (the Closing Date). Precious Metals and Minerals
Portfolio will then be liquidated as soon as practicable thereafter.
Approval of the Reorganization will be determined solely by approval
of the shareholders of the fund.
The funds have received an opinion of counsel that the Reorganization
will not result in any gain or loss for Federal income tax purposes
either to Precious Metals and Minerals Portfolio, or Gold Portfolio,
or to the shareholders of any fund. The rights and privileges of the
former shareholders of Precious Metals and Minerals Portfolio and the
shareholders of Gold Portfolio will be effectively unchanged by the
Reorganization.
COMPARATIVE FEE TABLES
Each fund pays a management fee to FMR for managing its investments
and business affairs which is calculated and paid to FMR every month.
Each fund pays management fees and other expenses separately. Each
fund's management fee is calculated by adding a monthly group fee rate
to an individual fund fee rate, dividing by twelve, and
multiplying the result by each fund's monthly average net assets. The
group fee rate is based on the monthly average net assets of all
mutual funds advised by FMR. In addition to the management fee payable
by the funds, each fund also incurs other expenses for services such
as maintaining shareholder records and furnishing shareholder
statements and financial reports. For the 12 months ended August 31,
1999, Precious Metals and Minerals Portfolio's total management fee
rate and total operating expense ratio were 0.59% and 1.75%,
respectively, and Gold Portfolio's total management fee rate and total
operating expense ratio were 0.59% and 1.54%, respectively. FMR has
voluntarily agreed to limit the total operating expenses of each fund
to 2.50% of their respective average net assets (excluding interest,
taxes, securities lending costs , brokerage commissions and
extraordinary expenses).
If shareholders approve the Reorganization, the combined fund will
retain Gold Portfolio's expense structure, requiring payment of a
management fee and other operating expenses. FMR has agreed to limit
the combined fund's expense ratio to 1.54% of its average net assets
through February 28, 2001 (excluding interest, taxes, securities
lending costs , brokerage commissions and extraordinary
expenses). This expense limitation would lower Precious Metals and
Minerals Portfolio's total operating expenses from 1.75% to 1.54% of
its average net assets beginning on the first business day after the
Closing Date of the Reorganization through February 28, 2001. After
February 28, 2001, the combined fund's expenses could increase. If the
proposed Reorganization is not approved, the fund will maintain its
current fee structure. For more information about the funds' current
fees, refer to their Prospectus.
The following table shows the fees and expenses of Precious Metals
and Minerals Portfolio and Gold Portfolio for the 12 months ended
August 31, 1999, adjusted to reflect current fees, and pro forma fees
for the combined fund based on the same time period after giving
effect to the Reorganization, including the effect of FMR's guaranteed
expense limitation to 1.54% of average net assets through February 28,
2001 (excluding interest, taxes, securities lending costs ,
brokerage commissions and extraordinary expenses).
ANNUAL FUND OPERATING EXPENSES
Annual fund operating expenses are paid out of each fund's assets.
Expenses are factored into each fund's share price and are not charged
directly to shareholder accounts. The following figures are based on
historical expenses, adjusted to reflect current fees, as of August
31, 1999, of each fund and are calculated as a percentage of average
net assets of each fund.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Precious Metals and Minerals Gold Portfolio Combined Fund
Portfolio
Maximum sales charge (load) 3.00% 3.00% 3.00%
on purchases (as a % of
offering price)A
Sales charge (load) on None None None
reinvested distributions
Deferred sales charge (load) None None None
on redemptions
Redemption fee for the funds
(as a % of amount redeemed)
on shares held 29 days or less 0.75% 0.75% 0.75%
on shares held 30 days or
more:
for redemption amounts
of up to $1,000 0.75% 0.75% 0.75%
for
redemption amounts of $1,000
or more $ 7.50 $ 7.50 $ 7.50
Exchange feeB $ 7.50 $ 7.50 $ 7.50
Annual account maintenance $ 12.00 $ 12.00 $ 12.00
fee (for accounts under
$2,500)
</TABLE>
A Lower sales charges may be available for accounts over $250,000.
B Shareholders will not pay an exchange fee if they exchange through
any of Fidelity's automated exchange services.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Precious Metals and Minerals Gold Portfolio Pro Forma
Portfolio ExpensesA -
Combined Fund
Management Fee 0.59% 0.59% 0.59%
12b-1 Fee None None None
Other Expenses 1.16% 0.95% 1.02%
TOTAL OPERATING EXPENSES 1.75%B,C 1.54%B,C 1.61%B
</TABLE>
A FMR has agreed to limit the total operating expenses of the combined
fund to 1.54% of its average net assets (excluding interest, taxes,
securities lending costs , brokerage commissions, and
extraordinary expenses) through February 28, 2001 if the
Reorganization is approved. After giving effect to this expense
limitation, the combined fund's management fee, other expenses and
total operating expenses would be 0.52%, 1.02% and 1.54%,
respectively.
B Each fund has entered into arrangements with its custodian and
transfer agent whereby credits realized as a result of uninvested cash
balances are used to reduce custodian and transfer agent expenses.
Including these reductions, the total fund operating expenses would
have been: 1.69% for Precious Metals and Minerals Portfolio; 1.47% for
Gold Portfolio; and 1.47% for the combined fund, giving effect to
FMR's expense limitation.
C FMR has voluntarily agreed to reimburse each fund to the extent that
total operating expenses (excluding interest, taxes, securities
lending costs , brokerage commissions, and extraordinary
expenses) as a percentage of their respective average net assets,
exceed 2.50%.
EXAMPLES OF EFFECT OF FUND EXPENSES
This example assumes that you invest $10,000 in the funds for the
time periods indicated and then redeem all of your shares at the end
of those periods. The example also assumes that your investment has a
5% return each year and that the funds' operating expenses remain the
same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Precious Metals and Minerals Gold Portfolio Combined Fund (Pro Forma)
Portfolio
1 year $ 480 $ 459 $ 466
3 years $ 842 $ 779 $ 800
5 years $ 1,228 $ 1,122 $ 1,157
10 years $ 2,308 $ 2,087 $ 2,161
</TABLE>
Fees include the effect of each fund's 3.00% maximum front-end sales
charge and $7.50 redemption fee.
You would pay the following expenses if you did not redeem your
shares:
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Precious Metals and Minerals Gold Portfolio Combined Fund (Pro Forma)
Portfolio
1 year $ 473 $ 452 $ 459
3 years $ 835 $ 772 $ 793
5 years $ 1,220 $ 1,114 $ 1,150
10 years $ 2,301 $ 2,079 $ 2,154
</TABLE>
These examples assume that all dividends and other distributions are
reinvested and that the percentage amounts listed under Annual Fund
Operating Expenses remain the same in the years shown. These examples
illustrate the effect of expenses, but are not meant to suggest actual
or expected expenses, which may vary. The assumed return of 5% is not
a prediction of, and does not represent, actual or expected
performance of any fund.
FORMS OF ORGANIZATION
Precious Metals and Minerals Portfolio and Gold Portfolio are
non-diversified funds of Fidelity Select Portfolios, an open-end
management investment company organized as a Massachusetts business
trust on November 20, 1980. The trust is authorized to issue an
unlimited number of shares of beneficial interest. Because the funds
are series of the same Massachusetts business trust, organized under
the same Declaration of Trust, the rights of the security holders of
Precious Metals and Minerals Portfolio under state law and the
governing documents are expected to remain unchanged after the
Reorganization. For more information regarding shareholder rights,
refer to the section of the funds' Statement of Additional Information
called "Description of the Trust."
INVESTMENT OBJECTIVES AND POLICIES
Precious Metals and Minerals Portfolio and Gold Portfolio have
similar investment objectives. Each fund seeks capital appreciation by
investing primarily in common stocks and in certain precious metals.
Precious Metals and Minerals Portfolio and Gold Portfolio have
substantially similar investment strategies. 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. 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 main difference between the funds is their non-fundamental
policies of normally investing at least 80% of fund assets in a
particular industry or group of industries. Precious Metals and
Minerals Portfolio normally invests at least 80% of its assets in
securities of companies principally engaged in exploration, mining,
processing, or dealing in gold, silver, platinum, diamonds, or other
precious metals and minerals, and in precious metals. Gold Portfolio
normally invests at least 80% of its assets in securities of companies
principally engaged in gold-related activities, and in gold bullion or
coins. Precious Metals and Minerals Portfolio's non-fundamental 80%
investment policy, therefore, includes companies principally engaged
in activities related to platinum, silver, diamonds and other non-gold
precious metals and minerals, while Gold Portfolio's does not.
The investment objective of each fund is fundamental and may not be
changed without the approval of a vote of at least a majority of the
outstanding voting securities of the fund. There can be no assurance
that any fund will achieve its objective. With the exception of
fundamental policies, investment policies of the funds can be changed
without shareholder approval. The differences between the funds
discussed above, except as noted, could be changed without a vote of
shareholders.
PERFORMANCE COMPARISONS OF THE FUNDS
The following table compares the funds' annual total returns for the
periods indicated. Please note that total returns are based on past
results and are not an indication of future performance.
ANNUAL TOTAL RETURNS*
(periods ended December 31)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
1994 1995 1996 1997 1998 1999**
Gold Portfolio (15.46%) 11.20% 19.92% (39.39%) (8.64%) (5.50%)
Precious Metals and Minerals (1.14%) (3.34%) 5.42% (44.89%) 0.10% (6.28%)
Portfolio
</TABLE>
* Returns do not include the effect of each fund's 3.00% maximum
front-end sales charge or $7.50 redemption fee.
** Through August 31, 1999.
The following table compares Precious Metals and Minerals Portfolio's
individual cumulative returns to Gold Portfolio's for the periods
indicated. Please note that total returns are based on past results
and are not an indication of future performance.
CUMULATIVE TOTAL RETURNS*
(periods ended August 31, 1999)
1 Year 3 Years 5 Years
Gold Portfolio 45.98% (52.55)% (36.12)%
Precious Metals and Minerals 47.22% (54.07)% (49.48)%
Portfolio
* Returns do not include the effect of each fund's 3.00% maximum
front-end sales charge or $7.50 redemption fee.
The tables above show that the funds have experienced generally
comparable performance over the time periods shown, with Gold
Portfolio slightly outperforming Precious Metals and Minerals
Portfolio.
The following graph shows the value of a hypothetical $10,000
investment in each fund made on August 31, 1994 assuming all
distributions are reinvested. The graph compares the cumulative
returns of the funds on a monthly basis from August 31, 1994 to August
31, 1999, and illustrates the relative volatility of their performance
over shorter periods of time.
SELECT PRECIOUS METALS & MINERALS PORTFOLIO SELECT GOLD PORTFOLIO
Gold Precious Metals&Minerals
00141 00061
1994/08/31 10000.00 10000.00
1994/09/30 10873.56 10765.52
1994/10/31 10087.36 10347.97
1994/11/30 8891.95 9239.83
1994/12/31 9154.02 9588.61
1995/01/31 8197.70 7918.20
1995/02/28 8478.16 8281.57
1995/03/31 9779.31 9122.20
1995/04/30 9742.53 9198.12
1995/05/31 9944.83 9084.23
1995/06/30 10082.76 9192.70
1995/07/31 10354.02 9572.34
1995/08/31 10377.01 9702.50
1995/09/30 10372.41 9729.62
1995/10/31 9121.84 8514.77
1995/11/30 9967.82 9111.35
1995/12/31 10179.31 9268.42
1996/01/31 11986.21 11211.36
1996/02/29 12464.37 11407.29
1996/03/31 12763.22 11341.98
1996/04/30 13066.67 11598.76
1996/05/31 14491.95 12269.81
1996/06/30 12445.98 10562.19
1996/07/31 12216.09 10431.25
1996/08/31 13462.07 10998.64
1996/09/30 13213.79 10540.36
1996/10/31 12850.57 10453.07
1996/11/30 12298.85 9929.33
1996/12/31 12207.07 9771.11
1997/01/31 11686.73 9351.03
1997/02/28 13224.33 10693.12
1997/03/31 11124.19 9105.52
1997/04/30 10452.18 8499.94
1997/05/31 11051.86 8641.79
1997/06/30 10105.26 7747.06
1997/07/31 9946.67 7441.54
1997/08/31 10040.83 7479.73
1997/09/30 10898.22 7828.89
1997/10/31 9228.05 6514.08
1997/11/30 7052.37 5030.13
1997/12/31 7399.29 5384.75
1998/01/31 7810.64 5930.32
1998/02/28 7518.24 5608.43
1998/03/31 8008.88 5984.88
1998/04/30 8474.74 6563.18
1998/05/31 7280.35 5559.33
1998/06/30 6393.23 4735.53
1998/07/31 5922.41 4620.96
1998/08/31 4376.14 3431.62
1998/09/30 6779.79 5215.63
1998/10/31 6576.60 5215.63
1998/11/30 6437.83 5095.60
1998/12/31 6759.97 5390.21
1999/01/31 6571.64 5226.54
1999/02/28 6338.71 4997.40
1999/03/31 6348.62 5008.31
1999/04/30 7339.82 5723.00
1999/05/31 6209.85 4806.45
1999/06/30 6507.21 4981.03
1999/07/31 6120.65 4839.18
1999/08/31 6388.27 5051.95
IMATRL PRASUN SHR__CHT 19990831 19991116 094649 R00000000000123
Fidelity Select Gold Portfolio
Fidelity Select Precious Metals and Minerals Portfolio
$6,388
$5,052
$
* Returns do not include the effect of each fund's 3.00% maximum
front-end sales charge or $7.50 redemption fee.
COMPARISON OF OTHER POLICIES OF THE FUNDS
DIVERSIFICATION. Each fund is a non-diversified fund. In order to
qualify as a regulated investment company under the Internal Revenue
Code of 1986, as amended (the Code), the Code generally requires each
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 each fund's total assets are invested in securities
of any one issuer. However, the Code allows unlimited investments in
cash, cash items, government securities and securities of other
investment companies.
BORROWING. Each fund may borrow money from banks or from other funds
advised by FMR or its affiliates, or through reverse repurchase
agreements. As a matter of fundamental policy, each fund may borrow
money for temporary or emergency purposes, but not in an amount
exceeding 33-1/3% of its total assets.
LENDING. Each fund does not currently intend to lend assets, other
than securities, to other parties, except by lending money (up to 15%
of the fund's net assets) to other funds or portfolios advised by FMR
or an affiliate, or by acquiring loans, loan participations, or other
forms of direct debt instruments. As a matter of fundamental policy,
each fund may not lend more than 33-1/3% of its total assets to other
parties, but this limitation does not apply to purchases of debt
securities or to repurchase agreements.
TEMPORARY DEFENSIVE POLICIES. FMR normally invests each fund's assets
according to the fund's investment strategy. Each fund also reserves
the right to invest without limitation in investment-grade debt
securities for temporary defensive purposes.
For more information about the risks and restrictions associated with
these policies, see the funds' Prospectus, and for a more detailed
discussion of the funds' investments, see their Statement of
Additional Information, which is incorporated herein by reference.
OPERATIONS OF GOLD PORTFOLIO FOLLOWING THE REORGANIZATION
FMR does not expect Gold Portfolio to revise its investment policies
as a result of the Reorganization. In addition, FMR does not
anticipate significant changes to the fund's management or to agents
that provide the fund with services. Specifically, the Trustees and
officers, the investment adviser, distributor, and other agents will
continue to serve Gold Portfolio in their current capacities. Gold
Portfolio and Precious Metals and Minerals Portfolio have the same
portfolio manager.
All of the current investments of Precious Metals and Minerals
Portfolio are permissible investments for Gold Portfolio.
Nevertheless, FMR may sell securities held by Precious Metals and
Minerals Portfolio and Gold Portfolio between the time of shareholder
approval and the Closing Date. Transaction costs associated with such
adjustments that occur between shareholder approval and the Closing
Date will be borne by the fund that incurred them. Transaction costs
associated with such adjustments that occur after the Closing Date
will be borne by Gold Portfolio.
PURCHASES AND REDEMPTIONS
The purchase and redemption policies for each fund are identical.
The price to buy one share of each fund is each fund's net asset
value per share (NAV). Each fund's shares are sold with a maximum
3.00% sales charge. Your shares are purchased at the next NAV
calculated after your investment is received in proper form .
Each fund's NAV is normally calculated each hour, from 10:00 a.m. to
the close of business of the New York Stock Exchange (NYSE), normally
4:00 p.m. Eastern time. Refer to the funds' Prospectus for more
information regarding how to buy shares.
The price to sell one share of each fund is the fund's NAV, minus the
applicable redemption fee. Your shares will be sold at the next NAV
calculated after your order is received and accepted, minus the
applicable redemption fee. Each fund's NAV is normally calculated each
hour, from 10:00 a.m. to the close of business of the NYSE, normally
4:00 p.m. Eastern time. Each fund deducts a redemption fee based on
the length of time shares are held prior to redemption. For shares
held 29 days or less, the redemption fee is equal to 0.75% of the
redemption amount. For shares held 30 days or more, the redemption fee
is equal to the lesser of $7.50 or 0.75% of the redemption amount.
Refer to the funds' Prospectus for more information regarding how to
sell shares. The redemption fee will not apply to transactions
contemplated by the proposed Reorganization.
For each fund, the minimum initial investment amount is $2,500, the
minimum additional investment amount is $250, and the minimum account
balance is $2,000. The minimum investment and balance requirements for
shareholders of Precious Metals and Minerals Portfolio will remain
unchanged by the fund's Reorganization.
On December 20, 1999, Precious Metals and Minerals Portfolio closed
to all new investments pending the Reorganization. Precious Metals and
Minerals Portfolio shareholders as of that date will no longer be able
to purchase shares of the fund except through the reinvestment of
dividends and other distributions. Shareholders of Precious Metals and
Minerals Portfolio may redeem shares through the Closing Date of the
fund's Reorganization. The holding period of the shares of Gold
Portfolio issued in the Reorganization will include the period during
which the shares of Precious Metals and Minerals Portfolio surrendered
were held. If the Reorganization is approved, the purchase and
redemption policies of the combined fund will remain unchanged.
EXCHANGES
The exchange privilege currently offered by each fund is the same and
is not expected to change after the Reorganization. Shareholders of
the funds may exchange their shares of a fund for shares of any other
Fidelity fund available in a shareholder's state. An exchange fee of
$7.50 will be waived if shareholders exchange through any of
Fidelity's automated exchange services. The exchange fee will not
apply to transactions contemplated by the proposed Reorganization.
DIVIDENDS AND OTHER DISTRIBUTIONS
Each fund distributes substantially all of its net investment income
and capital gains to shareholders each year. Each fund normally
distributes dividends and capital gains in April and December. On or
before the Closing Date, Precious Metals and Minerals Portfolio may
declare additional dividends or other distributions in order to
distribute substantially all of its investment company taxable income
and net realized capital gain.
FEDERAL INCOME TAX CONSEQUENCES OF THE REORGANIZATION
Each fund has received an opinion of its counsel, Kirkpatrick &
Lockhart LLP, that the Reorganization will constitute a tax-free
reorganization within the meaning of Section 368(a)(1)(C) of the Code.
Accordingly, no gain or loss will be recognized to the funds or their
shareholders as a result of the Reorganization. Please see the section
entitled "Federal Income Tax Considerations" for more information.
As of September 30, 1999, Precious Metals and Minerals Portfolio and
Gold Portfolio had net unrealized gains of approximately $14,526,843
and $9,208,226, respectively. During the period between shareholder
approval and the Closing Date, FMR may sell certain securities to make
portfolio adjustments in connection with the Reorganization. Selling
these securities may result in realization of capital gains by the
selling fund; however, these gains may be offset by each fund's
existing capital loss carryforwards.
As of February 28, 1999, Precious Metals and Minerals Portfolio and
Gold Portfolio have capital loss carryforwards for federal income tax
purposes of approximately $78 million and $53 million, respectively.
Under current federal tax law, Gold Portfolio may be limited to using
only a portion, if any, of its capital loss carryforward or the
capital loss carryforwards transferred by Precious Metals and Minerals
Portfolio at the time of the Reorganization (capital loss
carryforwards). There is no assurance that Gold Portfolio will be able
to realize sufficient capital gains to use the capital loss
carryforwards before they expire. The capital loss carryforward
attributable to Precious Metals and Minerals Portfolio will expire
between February 28, 2001 and February 28, 2007.
COMPARISON OF PRINCIPAL RISK FACTORS
Because each fund invests primarily in common stocks and in certain
precious metals, the funds have substantially similar levels of
investment risk. Because FMR concentrates each fund's investments in a
particular industry or group of industries, each fund's performance is
expected to be closely tied to economic and market conditions within
that industry or group of industries and to be more volatile than the
performance of less concentrated funds. The precious metals and
minerals industry and gold industry can be significantly affected by
international monetary and political developments such as currency
devaluations or revaluations, central bank movements, economic and
social conditions within a country, trade imbalances, or trade or
currency restrictions between countries. The prices of gold and other
precious metals mining securities can be subject to substantial
fluctuations over short periods of time. Because much of the world's
gold reserves are located in South Africa, the social and economic
conditions there and in neighboring countries can affect gold and
gold-related companies located in South Africa and worldwide.
As non-diversified funds, each fund has the ability to invest a
significant percentage of its assets in the securities of a single
issuer. Thus, changes in the financial condition of an issuer, changes
in general economic conditions, and changes in specific economic
conditions that affect a particular type of issuer have the potential
to have a greater impact on non-diversified funds such as Precious
Metals and Minerals Portfolio and Gold Portfolio than such changes
might have on more diversified funds.
THE PROPOSED TRANSACTION
TO APPROVE AN AGREEMENT AND PLAN OF REORGANIZATION BETWEEN PRECIOUS
METALS AND MINERALS PORTFOLIO AND GOLD PORTFOLIO.
REORGANIZATION PLAN
The terms and conditions under which the proposed transaction may be
consummated are set forth in the Agreement. Significant provisions of
the Agreement are summarized below; however, this summary is qualified
in its entirety by reference to the Agreement, a copy of which is
attached at Exhibit 1 to this Proxy Statement.
The Agreement contemplates (a) Gold Portfolio acquiring as of the
Closing Date all of the assets of Precious Metals and Minerals
Portfolio in exchange solely for shares of Gold Portfolio and the
assumption by Gold Portfolio of Precious Metals and Minerals
Portfolio's liabilities; and (b) the distribution of shares of Gold
Portfolio to the shareholders of Precious Metals and Minerals
Portfolio as provided for in the Agreement.
The assets of Precious Metals and Minerals Portfolio to be acquired
by Gold Portfolio include all cash, cash equivalents, securities,
receivables (including interest or dividends receivables), claims,
choses in action, and other property owned by Precious Metals and
Minerals Portfolio, and any deferred or prepaid expenses shown as an
asset on the books of Precious Metals and Minerals Portfolio on the
Closing Date. Gold Portfolio will assume from Precious Metals and
Minerals Portfolio all liabilities, debts, obligations, and duties of
Precious Metals and Minerals Portfolio of whatever kind or nature,
whether absolute, accrued, contingent, or otherwise, whether or not
arising in the ordinary course of business, whether or not
determinable on the Closing Date, and whether or not specifically
referred to in the Agreement; provided, however, that Precious Metals
and Minerals Portfolio will use its best efforts, to the extent
practicable, to discharge all of its known liabilities prior to the
Closing Date, other than liabilities incurred in the ordinary course
of business. Gold Portfolio also will deliver to Precious Metals and
Minerals Portfolio the number of full and fractional shares of Gold
Portfolio having an aggregate net asset value (as last determined on
the Closing Date) equal to the value of the assets of Precious Metals
and Minerals Portfolio less the liabilities of Precious Metals and
Minerals Portfolio as of the Closing Date. Precious Metals and
Minerals Portfolio shall then distribute the Gold Portfolio shares PRO
RATA to its shareholders.
The value of Precious Metals and Minerals Portfolio's assets to be
acquired by Gold Portfolio and the amount of its liabilities to be
assumed by Gold Portfolio will be determined as of the close of
business of the NYSE on the Closing Date, using the valuation
procedures set forth in Precious Metals and Minerals Portfolio's
then-current Prospectus and Statement of Additional Information. The
net asset value of a share of Gold Portfolio will be determined as of
the same time using the valuation procedures set forth in its
then-current Prospectus and Statement of Additional Information.
As of the Closing Date, Precious Metals and Minerals Portfolio will
distribute to its shareholders of record the shares of Gold Portfolio
it received, so that each Precious Metals and Minerals Portfolio
shareholder will receive the number of full and fractional shares of
Gold Portfolio equal in value to the aggregate net asset value of
shares of Precious Metals and Minerals Portfolio held by such
shareholder as last determined on the Closing Date; Precious Metals
and Minerals Portfolio will be liquidated as soon as practicable
thereafter. Such distribution will be accomplished by opening accounts
on the books of Gold Portfolio in the names of the Precious Metals and
Minerals Portfolio shareholders and by transferring thereto shares of
Gold Portfolio. Each Precious Metals and Minerals Portfolio
shareholder's account shall be credited with the respective PRO RATA
number of full and fractional shares (rounded to the third decimal
place) of Gold Portfolio due that shareholder. Gold Portfolio shall
not issue certificates representing its shares in connection with such
exchange.
Accordingly, immediately after the Reorganization, each former
Precious Metals and Minerals Portfolio shareholder will own shares of
Gold Portfolio equal to the aggregate net asset value of that
shareholder's shares of Precious Metals and Minerals Portfolio
immediately prior to the Reorganization. The net asset value per share
of Gold Portfolio will be unchanged by the transaction. Thus, the
Reorganization will not result in a dilution of any shareholder
interest.
Any transfer taxes payable upon issuance of shares of Gold Portfolio
in a name other than that of the registered holder of the shares on
the books of Precious Metals and Minerals Portfolio as of that time
shall be paid by the person to whom such shares are to be issued as a
condition of such transfer. Any reporting responsibility of Precious
Metals and Minerals Portfolio is and will continue to be its
responsibility up to and including the Closing Date and such later
date on which Precious Metals and Minerals Portfolio is liquidated.
Pursuant to its management contract with FMR, Precious Metals and
Minerals Portfolio will bear the cost of the Reorganization, including
professional fees, expenses associated with the filing of registration
statements, and the cost of soliciting proxies for the Meeting, which
will consist principally of printing and mailing prospectuses and
proxy statements, together with the cost of any supplementary
solicitation . Expenses exceeding the fund's expense cap will be
paid by FMR. In addition, there may be some transaction costs
associated with portfolio adjustments to Precious Metals and Minerals
Portfolio and Gold Portfolio due to the Reorganization prior to the
Closing Date which will be borne by Precious Metals and Minerals
Portfolio and Gold Portfolio, respectively. Any transaction costs
associated with portfolio adjustments to Precious Metals and Minerals
Portfolio and Gold Portfolio due to the Reorganization which occur
after the Closing Date and any additional merger-related costs
attributable to Gold Portfolio which occur after the Closing Date will
be borne by Gold Portfolio. The funds may recognize a taxable gain or
loss on the disposition of securities pursuant to these portfolio
adjustments. See the section entitled "Reasons for the
Reorganization."
The consummation of the Reorganization is subject to a number of
conditions set forth in the Agreement, some of which may be waived by
a fund. In addition, the Agreement may be amended in any mutually
agreeable manner, except that no amendment that may have a materially
adverse effect on the shareholders' interests may be made subsequent
to the Meeting.
REASONS FOR THE REORGANIZATION
The Board of Trustees (the Board) of the funds ha s determined
that the Reorganization is in the best interests of the shareholders
of both funds and that the Reorganization will not result in a
dilution of the interests of shareholders of either fund.
In considering the Reorganization, the Board considered a number of
factors, including the following:
(1) the compatibility of the funds' investment objectives and
policies;
(2) the historical performance of the funds;
(3) the relative expense ratios of the funds;
(4) the costs to be incurred by each fund as a result of the
Reorganization;
(5) the tax consequences of the Reorganization;
(6) the relative size of the funds;
(7) the consolidation of similar funds;
(8) the impact of changes to the Select Portfolios' offerings on the
funds and their shareholders; and
(9) the benefit to FMR and to the shareholders of the funds.
FMR recommended the Reorganization to the Board at a meeting of the
Board on July 15, 1999. In recommending the Reorganization, FMR
advised the Board that the funds have similar investment objectives,
policies, and investment portfolios. FMR advised the Board that the
principal difference in their investment policies is that Precious
Metals and Minerals Portfolio normally invests at least 80% of its
assets in securities of companies principally engaged in exploration,
mining, processing, or dealing in gold, silver, platinum, diamonds, or
other precious metals and minerals, and in precious metals.
The Board considered that the proposed merger would provide
shareholders of Precious Metals and Minerals Portfolio with a fund
that has slightly stronger historical performance on a year-to-year
and cumulative basis.
In addition, the Board also considered that if the Reorganization is
approved, FMR would limit the combined fund's total operating expenses
to the lower of the two funds' expense ratios for the 12 months ended
August 31, 1999 (1.54% of its average net assets) through February 28,
2001 (excluding interest, taxes, securities lending costs ,
brokerage commissions, and extraordinary expenses). This expense
limitation would reduce the total operating expenses of Precious
Metals and Minerals Portfolio from 1.75% to 1.54% of its average net
assets.
Finally, the Board considered the proposed Reorganization in the
context of the general goals of simplifying the Select Portfolios'
offerings by consolidating similar funds and of allowing FMR to
concentrate its investment expertise on one fund without sacrificing
the Select Portfolios' coverage of major industry sectors. While the
consolidation of similar funds potentially would benefit FMR, it
should also benefit shareholders by facilitating increased operational
efficiencies.
DESCRIPTION OF THE SECURITIES TO BE ISSUED
The trust, Fidelity Select Portfolios, is registered with the
Commission as an open-end management investment company. The trust's
Trustees are authorized to issue an unlimited number of shares of
beneficial interest of separate series. Gold Portfolio is one of 40
funds of the trust. Each share of Gold Portfolio represents an equal
proportionate interest with each other share of the fund, and each
such share of Gold Portfolio is entitled to equal voting, dividend,
liquidation, and redemption rights. Each shareholder of the fund is
entitled to one vote for each dollar value of net asset value of the
fund that shareholder owns. Shares of Gold Portfolio have no
preemptive or conversion rights. The voting and dividend rights, the
right of redemption, and the privilege of exchange are described in
the fund's Prospectus. Shares are fully paid and nonassessable, except
as set forth in the fund's Statement of Additional Information under
the heading "Shareholder and Trustee Liability."
The trust does not hold annual meetings of shareholders. There will
normally be no meetings of shareholders for the purpose of electing
Trustees unless less than a majority of the Trustees holding office
have been elected by shareholders, at which time the Trustees then in
office will call a shareholder meeting for the election of Trustees.
Under the 1940 Act, shareholders of record of at least two-thirds of
the outstanding shares of an investment company may remove a Trustee
by votes cast in person or by proxy at a meeting called for that
purpose. The Trustees are required to call a meeting of shareholders
for the purpose of voting upon the question of removal of any Trustee
when requested in writing to do so by the shareholders of record
holding at least 10% of the trust's outstanding shares.
FEDERAL INCOME TAX CONSIDERATIONS
The exchange of Precious Metals and Minerals Portfolio's assets for
Gold Portfolio's shares and the assumption of the liabilities of
Precious Metals and Minerals Portfolio by Gold Portfolio is intended
to qualify for federal income tax purposes as a tax-free
reorganization under the Code. With respect to the Reorganization, the
participating funds have received an opinion from Kirkpatrick &
Lockhart LLP, counsel to Precious Metals and Minerals Portfolio and
Gold Portfolio, substantially to the effect that:
(i) The acquisition by Gold Portfolio of all of the assets of
Precious Metals and Minerals Portfolio solely in exchange for Gold
Portfolio shares and the assumption by Gold Portfolio of Precious
Metals and Minerals Portfolio's liabilities, followed by the
distribution by Precious Metals and Minerals Portfolio of Gold
Portfolio shares to the shareholders of Precious Metals and Minerals
Portfolio pursuant to the liquidation of Precious Metals and Minerals
Portfolio and constructively in exchange for their Precious Metals and
Minerals Portfolio shares, will constitute a reorganization within the
meaning of section 368(a)(1)(C) of the Code, and Precious Metals and
Minerals Portfolio and Gold Portfolio will each be "a party to a
reorganization" within the meaning of section 368(b) of the Code;
(ii) No gain or loss will be recognized by Precious Metals and
Minerals Portfolio upon the transfer of all of its assets to Gold
Portfolio in exchange solely for Gold Portfolio shares and Gold
Portfolio's assumption of Precious Metals and Minerals Portfolio's
liabilities, followed by Precious Metals and Minerals Portfolio's
subsequent distribution of those shares to shareholders in liquidation
of Precious Metals and Minerals Portfolio;
(iii) No gain or loss will be recognized by Gold Portfolio upon the
receipt of the assets of Precious Metals and Minerals Portfolio in
exchange solely for Gold Portfolio shares and its assumption of
Precious Metals and Minerals Portfolio's liabilities;
(iv) The shareholders of Precious Metals and Minerals Portfolio will
recognize no gain or loss upon the exchange of their Precious Metals
and Minerals Portfolio shares solely for Gold Portfolio shares;
(v) The basis of Precious Metals and Minerals Portfolio's assets in
the hands of Gold Portfolio will be the same as the basis of those
assets in the hands of Precious Metals and Minerals Portfolio
immediately prior to the Reorganization, and the holding period of
those assets in the hands of Gold Portfolio will include the holding
period of those assets in the hands of Precious Metals and Minerals
Portfolio;
(vi) The basis of Precious Metals and Minerals Portfolio shareholders
in Gold Portfolio shares will be the same as their basis in Precious
Metals and Minerals Portfolio shares to be surrendered in exchange
therefor; and
(vii) The holding period of the Gold Portfolio shares to be received
by the Precious Metals and Minerals Portfolio shareholders will
include the period during which the Precious Metals and Minerals
Portfolio shares to be surrendered in exchange therefor were held,
provided such Precious Metals and Minerals Portfolio shares were held
as capital assets by those shareholders on the date of the
Reorganization.
Shareholders of Precious Metals and Minerals Portfolio should consult
their tax advisers regarding the effect, if any, of the proposed
Reorganization in light of their individual circumstances. Because the
foregoing discussion only relates to the federal income tax
consequences of the Reorganization, those shareholders also should
consult their tax advisers as to state and local tax consequences, if
any, of the Reorganization.
CAPITALIZATION
The following table shows the capitalization of the funds as of
August 31, 1999 and on a pro forma combined basis (unaudited) as of
that date giving effect to the Reorganization.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
Net Assets NAV Per Share Shares Outstanding
Precious Metals and Minerals $ 131,012,865 $ 9.26 14,141,664
Portfolio
Gold Portfolio $ 177,226,949 $ 12.89 13,752,983
Pro Forma Combined Fund $ 308,239,814 $ 12.89 23,916,898
</TABLE>
CONCLUSION
The Agreement and the transactions provided for therein were approved
by the Board at a meeting held on July 15, 1999. The Board of Trustees
of Fidelity Select Portfolios determined that the proposed
Reorganization is in the best interests of shareholders of each fund
and that the interests of existing shareholders of Precious Metals and
Minerals Portfolio and Gold Portfolio would not be diluted as a result
of the Reorganization. In the event that the Reorganization is not
consummated, Precious Metals and Minerals Portfolio will continue to
engage in business as a fund of a registered investment company and
the Board of Fidelity Select Portfolios will consider other proposals
for the reorganization or liquidation of the fund.
ADDITIONAL INFORMATION ABOUT FIDELITY SELECT GOLD PORTFOLIO
Gold Portfolio's Prospectus, dated April 29, 1999 and supplemented on
December 13 , 1999, is enclosed with this Proxy Statement and is
incorporated herein by reference. The Prospectus contains additional
information about the fund including its investment objective and
policies, investment adviser, advisory fees and expenses,
organization, and procedures for purchasing and redeeming shares. This
Proxy Statement also contains Gold Portfolio's financial highlights
for the five fiscal years ended February 28, 1999, which have been
updated to include the semiannual unaudited data for the six months
ended August 31, 1999, as shown below:
FINANCIAL HIGHLIGHTS
SELECTED PER-SHARE DATA AND RATIOS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS ENDED AUGUST 31, YEARS ENDED FEBRUARY 28,
1999
SELECTED PER-SHARE DATA (UNAUDITED) 1999 1998 1997 1996 F
Net asset value, beginning of $ 12.79 $ 15.17 $ 28.21 $ 27.11 $ 18.44
period
Income from Investment
Operations
Net investment income (loss) D .07 H (.08) (.13) (.16) (.06)
Net realized and unrealized (.01) G (2.43) (11.78) 1.60 8.62
gain (loss)
Total from investment .06 (2.51) (11.91) 1.44 8.56
operations
Less Distributions
From net realized gain - - (1.29) (.50) -
Redemption fees added to paid .04 .13 .16 .16 .11
in capital
Net asset value, end of period $ 12.89 $ 12.79 $ 15.17 $ 28.21 $ 27.11
TOTAL RETURN B, C 0.78% (15.69)% (43.15)% 6.10% 47.02%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 177,227 $ 179,619 $ 219,668 $ 428,103 $ 451,493
(000 omitted)
Ratio of expenses to average 1.52% A 1.57% 1.55% 1.44% 1.39%
net assets
Ratio of expenses to average 1.42% A, E 1.54% E 1.48% E 1.42% E 1.39%
net assets after expense
reductions
Ratio of net investment 1.04% A (.59)% (.67)% (.59)% (.27)%
income (loss) to average
net assets
Portfolio turnover rate 62% A 59% 89% 63% 56%
A ANNUALIZED B THE TOTAL
RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES
NOT BEEN REDUCED DURING THE
PERIODS SHOWN. C TOTAL
RETURNS DO NOT INCLUDE THE
ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE
YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD. E FMR OR THE
FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH
THIRD PARTIES WHO EITHER
PAID OR REDUCED A PORTION OF
THE FUND'S EXPENSES. F FOR
THE YEAR ENDED FEBRUARY 29 G
THE AMOUNT SHOWN FOR A SHARE
OUTSTANDING DOES NOT
CORRESPOND WITH THE
AGGREGATE NET GAIN 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.
H NET INVESTMENT INCOME PER
SHARE REFLECTS A SPECIAL
DIVIDEND FROM GOLD FIELDS
LTD. WHICH AMOUNTED TO $.06
PER SHARE.
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
SELECTED PER-SHARE DATA 1995
Net asset value, beginning of $ 22.66
period
Income from Investment
Operations
Net investment income (loss) D (.05)
Net realized and unrealized (4.25)
gain (loss)
Total from investment (4.30)
operations
Less Distributions
From net realized gain -
Redemption fees added to paid .08
in capital
Net asset value, end of period $ 18.44
TOTAL RETURN B, C (18.62)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 278,197
(000 omitted)
Ratio of expenses to average 1.41%
net assets
Ratio of expenses to average 1.41%
net assets after expense
reductions
Ratio of net investment (.22)%
income (loss) to average
net assets
Portfolio turnover rate 34%
A ANNUALIZED B THE TOTAL
RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES
NOT BEEN REDUCED DURING THE
PERIODS SHOWN. C TOTAL
RETURNS DO NOT INCLUDE THE
ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE
YEAR ARE NOT ANNUALIZED. D
NET INVESTMENT INCOME (LOSS)
PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD. E FMR OR THE
FUND HAS ENTERED INTO
VARYING ARRANGEMENTS WITH
THIRD PARTIES WHO EITHER
PAID OR REDUCED A PORTION OF
THE FUND'S EXPENSES. F FOR
THE YEAR ENDED FEBRUARY 29 G
THE AMOUNT SHOWN FOR A SHARE
OUTSTANDING DOES NOT
CORRESPOND WITH THE
AGGREGATE NET GAIN 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.
H NET INVESTMENT INCOME PER
SHARE REFLECTS A SPECIAL
DIVIDEND FROM GOLD FIELDS
LTD. WHICH AMOUNTED TO $.06
PER SHARE.
</TABLE>
MISCELLANEOUS
LEGAL MATTERS. Certain legal matters in connection with the issuance
of Gold Portfolio shares have been passed upon by Kirkpatrick &
Lockhart LLP, counsel to the trust.
EXPERTS. The audited financial statements of Precious Metals and
Minerals Portfolio and Gold Portfolio incorporated by reference into
the Statement of Additional Information, have been examined by
PricewaterhouseCoopers LLP, independent accountants, whose reports
thereon are included in the Annual Report to Shareholders for the
fiscal year ended February 28, 1999. Unaudited financial statements
for Precious Metals and Minerals Portfolio and Gold Portfolio for the
six-month period ended August 31, 1999 are also incorporated by
reference into the Statement of Additional Information that relates to
this Proxy Statement. The financial statements audited by
PricewaterhouseCoopers LLP have been incorporated by reference in
reliance on their reports given on their authority as experts in
auditing and accounting.
AVAILABLE INFORMATION. Fidelity Select Portfolios is subject to the
informational requirements of the Securities and Exchange Act of 1934
and the 1940 Act, and in accordance therewith files reports, proxy
material, and other information with the Commission. Such reports,
proxy material, and other information can be inspected and copied at
the Public Reference Room maintained by the Commission at 450 Fifth
Street, N.W., Washington D.C. 20549 and 7 World Trade Center, New
York, NY 10048. Copies of such material can also be obtained from the
Public Reference Branch, Office of Consumer Affairs and Information
Services, Securities and Exchange Commission, Washington D.C. 20549,
at prescribed rates.
NOTICE TO BANKS, BROKER-DEALERS AND VOTING TRUSTEES AND THEIR
NOMINEES. Please advise Fidelity Select Portfolios, in care of
Fidelity Service Company, Inc., P.O. Box 789, Boston, Massachusetts,
02102, whether other persons are beneficial owners of shares for which
proxies are being solicited and, if so, the number of copies of the
Proxy Statement you wish to receive in order to supply copies to the
beneficial owners of the respective shares.
ATTACHMENT 1
EXCERPTS FROM THE ANNUAL REPORT OF FIDELITY SELECT GOLD
PORTFOLIO DATED FEBRUARY 28, 1999
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
1999
Select Gold -15.69% -9.46% -1.25%
Select Gold (load adj.) -18.29% -10.03% -1.56%
S&P 500 19.74% 24.15% 18.78%
GS Natural Resources -20.88% n/a n/a
AVERAGE ANNUAL RETURNS take the fund's cumulative return and show you
what would have happened if the fund had performed at a constant rate
each year.
$10,000 OVER 10 YEARS
Gold S&P 500
00041 SP001
1989/02/28 9700.00 10000.00
1989/03/31 9358.89 10233.00
1989/04/30 8906.14 10764.09
1989/05/31 8583.63 11200.04
1989/06/30 9067.39 11136.20
1989/07/31 9160.42 12141.80
1989/08/31 9625.58 12379.78
1989/09/30 9681.39 12329.02
1989/10/31 9780.63 12042.99
1989/11/30 11027.24 12288.66
1989/12/31 10853.58 12583.59
1990/01/31 11331.14 11739.23
1990/02/28 11014.83 11890.67
1990/03/31 10586.89 12205.77
1990/04/30 9439.51 11900.63
1990/05/31 10270.59 13060.94
1990/06/30 9613.17 12972.12
1990/07/31 10282.99 12930.61
1990/08/31 10096.93 11761.68
1990/09/30 10090.73 11188.89
1990/10/31 8434.78 11140.78
1990/11/30 8329.35 11860.47
1990/12/31 8986.76 12191.38
1991/01/31 7740.15 12722.92
1991/02/28 8440.98 13632.61
1991/03/31 8409.97 13962.52
1991/04/30 8112.28 13996.03
1991/05/31 8391.37 14600.66
1991/06/30 8955.75 13931.95
1991/07/31 8856.52 14581.18
1991/08/31 8137.08 14926.75
1991/09/30 8000.64 14677.48
1991/10/31 8614.64 14874.16
1991/11/30 8596.04 14274.73
1991/12/31 8434.78 15907.76
1992/01/31 8639.45 15611.87
1992/02/29 8372.76 15814.83
1992/03/31 7802.17 15506.44
1992/04/30 7405.24 15962.33
1992/05/31 7932.42 16040.54
1992/06/30 8447.19 15801.54
1992/07/31 8980.56 16447.82
1992/08/31 8813.11 16110.64
1992/09/30 8763.49 16300.75
1992/10/31 8503.01 16357.80
1992/11/30 7783.57 16915.60
1992/12/31 8174.30 17123.66
1993/01/31 8019.25 17267.50
1993/02/28 8775.90 17502.34
1993/03/31 9762.02 17871.64
1993/04/30 10996.23 17439.14
1993/05/31 12218.03 17906.51
1993/06/30 12931.27 17958.44
1993/07/31 13960.81 17886.61
1993/08/31 13228.96 18564.51
1993/09/30 11827.30 18421.56
1993/10/31 13594.88 18802.89
1993/11/30 13607.29 18624.26
1993/12/31 14605.82 18849.62
1994/01/31 14612.02 19490.50
1994/02/28 14053.84 18962.31
1994/03/31 14394.95 18135.55
1994/04/30 13179.35 18367.69
1994/05/31 13749.94 18668.92
1994/06/30 13073.91 18211.53
1994/07/31 12881.65 18808.87
1994/08/31 13489.45 19580.03
1994/09/30 14667.84 19100.32
1994/10/31 13607.29 19530.08
1994/11/30 11994.76 18818.79
1994/12/31 12348.27 19097.87
1995/01/31 11058.25 19593.08
1995/02/28 11436.57 20356.63
1995/03/31 13191.75 20957.35
1995/04/30 13142.14 21574.54
1995/05/31 13415.03 22436.88
1995/06/30 13601.09 22958.09
1995/07/31 13967.01 23719.38
1995/08/31 13998.02 23778.91
1995/09/30 13991.82 24782.38
1995/10/31 12304.86 24693.91
1995/11/30 13446.04 25777.97
1995/12/31 13731.33 26274.46
1996/01/31 16168.73 27168.84
1996/02/29 16813.75 27420.69
1996/03/31 17216.88 27684.75
1996/04/30 17626.21 28092.83
1996/05/31 19548.85 28817.34
1996/06/30 16788.94 28927.14
1996/07/31 16478.84 27649.13
1996/08/31 18159.59 28232.26
1996/09/30 17824.68 29821.17
1996/10/31 17334.72 30643.63
1996/11/30 16590.47 32959.99
1996/12/31 16466.67 32307.05
1997/01/31 15764.75 34325.59
1997/02/28 17838.90 34594.71
1997/03/31 15005.92 33173.21
1997/04/30 14099.42 35153.65
1997/05/31 14908.35 37293.80
1997/06/30 13631.44 38964.57
1997/07/31 13417.51 42064.98
1997/08/31 13544.53 39708.50
1997/09/30 14701.10 41883.33
1997/10/31 12448.13 40484.43
1997/11/30 9513.26 42358.45
1997/12/31 9981.24 43085.75
1998/01/31 10536.12 43562.28
1998/02/28 10141.69 46703.99
1998/03/31 10803.54 49095.70
1998/04/30 11431.96 49589.60
1998/05/31 9820.79 48737.16
1998/06/30 8624.11 50716.86
1998/07/31 7989.00 50176.72
1998/08/31 5903.17 42922.17
1998/09/30 9145.57 45671.77
1998/10/31 8871.47 49386.71
1998/11/30 8684.28 52380.04
1998/12/31 9118.83 55398.18
1999/01/31 8864.78 57714.93
1999/02/26 8543.00 55921.15
IMATRL PRASUN SHR__CHT 19990228 19990307 162024 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Select Gold Portfolio on February 28, 1989, and
the current 3.00% sales charge was paid. As the chart shows, by
February 28, 1999, the value of the investment would have been $8,543
- - a 14.57% decrease on the initial investment - and includes the
effect of a $7.50 trading fee. For comparison, look at how the
Standard & Poor's 500 Index did over the same period. With dividends
and capital gains, if any, reinvested, the same $10,000 investment
would have grown to $55,921 - a 459.21% increase.
An interview with George Domolky, Portfolio Manager of Fidelity Select
Gold Portfolio.
Q. HOW DID THE FUND PERFORM, GEORGE?
A. The fund once again had a negative return but performed well
relative to the more meaningful of its two benchmarks. For the 12
months that ended February 28, 1999, the fund had a total return of
- -15.69%, while the Goldman Sachs Natural Resources Index - an index of
96 stocks designed to measure the performance of companies in the
natural resources sector - returned -20.88%. The Standard & Poor's 500
Index posted a return of 19.74% during the same period.
Q. WHY DID THE FUND OUTPERFORM THE GOLDMAN SACHS INDEX BUT LAG THE S&P
500?
A. As always, the price of gold played a major role in determining how
the fund performed. Following a difficult period of steadily falling
prices in 1997, gold stabilized in 1998 and ended the period
essentially where it began, around $290 per ounce. On the other hand,
the prices of some other commodities, such as copper and nickel,
continued to fall during the period. The Goldman Sachs index contains
the stocks of companies involved in the production of a wide variety
of natural resources, including copper and nickel. The weakness of
those commodities, together with the fund's favorable stock selection
process, helped the fund's performance relative to the Goldman Sachs
index. Although gold stabilized, it remained low by historical
standards, and many mining companies found it difficult to do business
profitably. Consequently, investors tended to favor stocks from other
sectors over precious metals shares, as evidenced by the fund's poor
showing against the S&P 500.
Q. WHAT WAS YOUR STRATEGY DURING THE PERIOD?
A. Reflecting the June 1, 1998, change in the fund's investment
policies allowing it to invest in precious metals mining companies
anywhere in the world, I pursued a strategy of broadening the fund's
exposure to companies in Australia and, to a lesser extent, South
Africa. Although foreign investments are commonly viewed as having
greater risk than domestic ones, this strategy enabled the fund to
purchase stocks that, in general, were more modestly valued and
performed better than their peers in the United States and Canada. In
addition, the fund maintained its overall emphasis on finding strong
companies with healthy balance sheets and the ability to add
meaningfully to production.
Q. WHAT STOCKS HELPED THE FUND'S PERFORMANCE?
A. Getchell Gold, the fund's largest holding for much of the period,
was also the holding that made the most positive contribution to
performance. The company received a takeover bid from competitor
Placer Dome at a price considerably above Getchell's market price,
which buoyed the stock. Stillwater Mining was another positive
contributor. The company, which produces platinum and palladium, was
helped by higher prices resulting from cutbacks in Russian exports of
those metals. A third helpful holding was Buenaventura. The company is
a major gold producer in Chile and co-owner, with Newmont Mining, of
one of the lowest-cost mines in the world.
Q. WHAT STOCKS WERE DETRIMENTAL TO PERFORMANCE?
A. Greenstone Resources was the holding that hurt performance most.
The stock performed poorly after the company reported disappointing
production numbers. TVX Gold reacted poorly when the company
encountered delays in starting production at some new mines in Greece.
Pioneer Group suffered from poor gold mining results in Ghana. The
fund did not hold these positions at the end of the period.
Q. WHAT'S YOUR OUTLOOK, GEORGE?
A. The Far East is traditionally a strong source of demand for gold
jewelry, so a recovery in that region, particularly in Japan, would be
favorable for the yellow metal. In addition, gold is traditionally
viewed as a hedge against inflation, so any upturn in the inflation
outlook - a real possibility with the U.S. economy growing faster than
expected and economic forces in Asia beginning to recover - would help
the outlook for gold. Another factor to consider is central bank
sales, which helped to drive gold prices lower for the past several
years. Now that the European Economic Community has officially
launched its currency, the euro, it seems likely that, while central
bank sales in Europe may continue on a smaller scale, they will no
longer occur at levels that will depress the price of gold. Although
these developments seem promising, the fund does not make bets on the
price of gold, but rather attempts to invest in companies that can
benefit regardless of the level of gold prices.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH FEBRUARY 28, 1999. THE MANAGER'S VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET OR OTHER CONDITIONS.
EXHIBIT 1
FORM OF AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF REORGANIZATION (the Agreement) is made as
of December 20, 1999, by and between Fidelity Select Precious Metals
and Minerals Portfolio (Precious Metals and Minerals Portfolio) and
Fidelity Select Gold Portfolio (Gold Portfolio), funds of Fidelity
Select Portfolios (the trust). The trust is a duly organized business
trust under the laws of the Commonwealth of Massachusetts with an
office at 27 State Street, 10th Floor, Boston, Massachusetts 02109.
Gold Portfolio and Precious Metals and Minerals Portfolio may be
referred to herein collectively as the "Funds" or each individually as
the "Fund."
This Agreement is intended to be, and is adopted as, a plan of
reorganization within the meaning of Section 368(a)(1)(C) of the
Internal Revenue Code of 1986, as amended (the Code). The
reorganization will comprise: (a) the transfer of all of the assets of
Precious Metals and Minerals Portfolio to Gold Portfolio solely in
exchange for shares of beneficial interest in Gold Portfolio (the Gold
Portfolio Shares) and the assumption by Gold Portfolio of Precious
Metals and Minerals Portfolio's liabilities; and (b) the constructive
distribution of such shares by Precious Metals and Minerals Portfolio
PRO RATA to its shareholders in complete liquidation and termination
of Precious Metals and Minerals Portfolio in exchange for all of
Precious Metals and Minerals Portfolio's outstanding shares. Precious
Metals and Minerals Portfolio shall receive shares of Gold Portfolio
having an aggregate net asset value equal to the value of the assets
of Precious Metals and Minerals Portfolio as last determined on the
Closing Date (as defined in Section 6), which Precious Metals and
Minerals Portfolio shall then distribute PRO RATA to its shareholders.
The foregoing transactions are referred to herein as the
"Reorganization."
In consideration of the mutual promises and subject to the terms and
conditions herein, the parties covenant and agree as follows:
1. REPRESENTATIONS AND WARRANTIES OF PRECIOUS METALS AND MINERALS
PORTFOLIO.
Precious Metals and Minerals Portfolio represents and warrants to and
agrees with Gold Portfolio that:
(a) Precious Metals and Minerals Portfolio is a series of Fidelity
Select Portfolios, a business trust duly organized, validly existing,
and in good standing under the laws of the Commonwealth of
Massachusetts, and has the power to own all of its properties and
assets and to carry out its obligations under this Agreement. It has
all necessary federal, state, and local authorizations to carry on its
business as now being conducted and to carry out this Agreement;
(b) Fidelity Select Portfolios is an open-end, management investment
company duly registered under the Investment Company Act of 1940, as
amended (the 1940 Act), and such registration is in full force and
effect;
(c) The Prospectus and Statement of Additional Information of
Precious Metals and Minerals Portfolio dated April 29, 1999, the
supplement to the Prospectus dated Decmber 13 , 1999, and the
supplement to the Statement of Additional Information dated
November 1 , 1999, previously furnished to Gold Portfolio, did
not and do not contain any untrue statement of a material fact or omit
to state a material fact required to be stated therein or necessary to
make the statements therein not misleading;
(d) There are no material legal, administrative, or other proceedings
pending or, to the knowledge of Precious Metals and Minerals
Portfolio, threatened against Precious Metals and Minerals Portfolio
which assert liability on the part of Precious Metals and Minerals
Portfolio. Precious Metals and Minerals Portfolio knows of no facts
which might form the basis for the institution of such proceedings;
(e) Precious Metals and Minerals Portfolio is not in, and the
execution, delivery, and performance of this Agreement will not result
in, violation of any provision of its Amended and Restated Declaration
of Trust or By-laws, or, to the knowledge of Precious Metals and
Minerals Portfolio, of any agreement, indenture, instrument, contract,
lease, or other undertaking to which Precious Metals and Minerals
Portfolio is a party or by which Precious Metals and Minerals
Portfolio is bound or result in the acceleration of any obligation or
the imposition of any penalty under any agreement, judgment or decree
to which Precious Metals and Minerals Portfolio is a party or is
bound;
(f) The Statement of Assets and Liabilities, the Statement of
Operations, the Statement of Changes in Net Assets, Financial
Highlights, and the Schedule of Investments (including market values)
of Precious Metals and Minerals Portfolio at February 28, 1999, have
been audited by PricewaterhouseCoopers LLP, independent accountants,
and have been furnished to Gold Portfolio together with such unaudited
financial statements and schedule of investments (including market
values) for the six month period ended August 31, 1999. Said
Statements of Assets and Liabilities and Schedule of Investments
fairly present the Fund's financial position as of such date and said
Statement of Operations, Statement of Changes in Net Assets, and
Financial Highlights fairly reflect its results of operations, changes
in financial position, and financial highlights for the periods
covered thereby in conformity with generally accepted accounting
principles consistently applied;
(g) Precious Metals and Minerals Portfolio has no known liabilities
of a material nature, contingent or otherwise, other than those shown
as belonging to it on its statement of assets and liabilities as of
February 28, 1999 and those incurred in the ordinary course of
Precious Metals and Minerals Portfolio's business as an investment
company since February 28, 1999;
(h) The registration statement (Registration Statement) filed with
the Securities and Exchange Commission (Commission) by Fidelity Select
Portfolios on Form N-14 relating to the shares of Gold Portfolio
issuable hereunder and the proxy statement of Precious Metals and
Minerals Portfolio included therein (Proxy Statement), on the
effective date of the Registration Statement and insofar as they
relate to Precious Metals and Minerals Portfolio (i) comply in all
material respects with the provisions of the Securities Act of 1933,
as amended (the 1933 Act), the Securities Exchange Act of 1934, as
amended (the 1934 Act), and the 1940 Act, and the rules and
regulations thereunder, and (ii) do not contain any untrue statement
of a material fact or omit to state a material fact required to be
stated therein or necessary to make the statements therein not
misleading; and at the time of the shareholders' meeting referred to
in Section 7 and on the Closing Date, the prospectus contained in the
Registration Statement of which the Proxy Statement is a part (the
Prospectus), as amended or supplemented, insofar as it relates to
Precious Metals and Minerals Portfolio, does not contain any untrue
statement of a material fact or omit to state a material fact required
to be stated therein or necessary to make the statements therein not
misleading;
(i) All material contracts and commitments of Precious Metals and
Minerals Portfolio (other than this Agreement) will be terminated
without liability to Precious Metals and Minerals Portfolio prior to
the Closing Date (other than those made in connection with redemptions
of shares and the purchase and sale of portfolio securities made in
the ordinary course of business);
(j) No consent, approval, authorization, or order of any court or
governmental authority is required for the consummation by Precious
Metals and Minerals Portfolio of the transactions contemplated by this
Agreement, except such as have been obtained under the 1933 Act, the
1934 Act, the 1940 Act, and state securities or blue sky laws (which
term as used herein shall include the District of Columbia and Puerto
Rico);
(k) Precious Metals and Minerals Portfolio has filed or will file all
federal and state tax returns which, to the knowledge of Precious
Metals and Minerals Portfolio's officers, are required to be filed by
Precious Metals and Minerals Portfolio and has paid or will pay all
federal and state taxes shown to be due on said returns or provision
shall have been made for the payment thereof, and, to the best of
Precious Metals and Minerals Portfolio's knowledge, no such return is
currently under audit and no assessment has been asserted with respect
to such returns;
(l) Precious Metals and Minerals Portfolio has met the requirements
of Subchapter M of the Code for qualification and treatment as a
regulated investment company for all prior taxable years and intends
to meet such requirements for its current taxable year ending on the
Closing Date;
(m) All of the issued and outstanding shares of Precious Metals and
Minerals Portfolio are, and at the Closing Date will be, duly and
validly issued and outstanding and fully paid and nonassessable as a
matter of Massachusetts law (except as disclosed in the Fund's
Statement of Additional Information), and have been offered for sale
and in conformity with all applicable federal securities laws. All of
the issued and outstanding shares of Precious Metals and Minerals
Portfolio will, at the Closing Date, be held by the persons and in the
amounts set forth in the list of shareholders submitted to Gold
Portfolio in accordance with this Agreement;
(n) As of both the Valuation Time (as defined in Section 4) and the
Closing Date, Precious Metals and Minerals Portfolio will have the
full right, power, and authority to sell, assign, transfer, and
deliver its portfolio securities and any other assets of Precious
Metals and Minerals Portfolio to be transferred to Gold Portfolio
pursuant to this Agreement. As of the Closing Date, subject only to
the delivery of Precious Metals and Minerals Portfolio's portfolio
securities and any such other assets as contemplated by this
Agreement, Gold Portfolio will acquire Precious Metals and Minerals
Portfolio's portfolio securities and any such other assets subject to
no encumbrances, liens, or security interests (except for those that
may arise in the ordinary course and are disclosed to Gold Portfolio)
and without any restrictions upon the transfer thereof; and
(o) The execution, performance, and delivery of this Agreement will
have been duly authorized prior to the Closing Date by all necessary
corporate action on the part of Precious Metals and Minerals
Portfolio, and this Agreement constitutes a valid and binding
obligation of Precious Metals and Minerals Portfolio enforceable in
accordance with its terms, subject to shareholder approval.
2. REPRESENTATIONS AND WARRANTIES OF GOLD PORTFOLIO.
Gold Portfolio represents and warrants to and agrees with Precious
Metals and Minerals Portfolio that:
(a) Gold Portfolio is a series of Fidelity Select Portfolios, a
business trust duly organized, validly existing, and in good standing
under the laws of the Commonwealth of Massachusetts, and has the power
to own all of its properties and assets and to carry out its
obligations under this Agreement. It has all necessary federal, state,
and local authorizations to carry on its business as now being
conducted and to carry out this Agreement;
(b) Fidelity Select Portfolios is an open-end, management investment
company duly registered under the 1940 Act, and such registration is
in full force and effect;
(c) The Prospectus and Statement of Additional Information of Gold
Portfolio, dated April 29, 1999, the supplement to the Prospectus
dated December 13 , 1999, and the supplement to the Statement of
Additional Information dated November 1 , 1999, previously
furnished to Precious Metals and Minerals Portfolio did not and do not
contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading;
(d) There are no material legal, administrative, or other proceedings
pending or, to the knowledge of Gold Portfolio, threatened against
Gold Portfolio which assert liability on the part of Gold Portfolio.
Gold Portfolio knows of no facts which might form the basis for the
institution of such proceedings;
(e) Gold Portfolio is not in, and the execution, delivery, and
performance of this Agreement will not result in, violation of any
provision of its Amended and Restated Declaration of Trust or By-laws,
or, to the knowledge of Gold Portfolio, of any agreement, indenture,
instrument, contract, lease, or other undertaking to which Gold
Portfolio is a party or by which Gold Portfolio is bound or result in
the acceleration of any obligation or the imposition of any penalty
under any agreement, judgment, or decree to which Gold Portfolio is a
party or is bound;
(f) The Statement of Assets and Liabilities, the Statement of
Operations, the Statement of Changes in Net Assets, Financial
Highlights, and the Schedule of Investments (including market values)
of Gold Portfolio at February 28, 1999, have been audited by
PricewaterhouseCoopers LLP, independent accountants, and have been
furnished to Precious Metals and Minerals Portfolio together with such
unaudited financial statements and schedule of investments (including
market values) for the six month period ended August 31, 1999. Said
Statements of Assets and Liabilities and Schedule of Investments
fairly present its financial position as of such date and said
Statement of Operations, Statement of Changes in Net Assets, and
Financial Highlights fairly reflect its results of operations, changes
in financial position, and financial highlights for the periods
covered thereby in conformity with generally accepted accounting
principles consistently applied;
(g) Gold Portfolio has no known liabilities of a material nature,
contingent or otherwise, other than those shown as belonging to it on
its statement of assets and liabilities as of February 28, 1999 and
those incurred in the ordinary course of Gold Portfolio's business as
an investment company since February 28, 1999;
(h) No consent, approval, authorization, or order of any court or
governmental authority is required for the consummation by Gold
Portfolio of the transactions contemplated by this Agreement, except
such as have been obtained under the 1933 Act, the 1934 Act, the 1940
Act, and state securities or blue sky laws (which term as used herein
shall include the District of Columbia and Puerto Rico);
(i) Gold Portfolio has filed or will file all federal and state tax
returns which, to the knowledge of Gold Portfolio's officers, are
required to be filed by Gold Portfolio and has paid or will pay all
federal and state taxes shown to be due on said returns or provision
shall have been made for the payment thereof, and, to the best of Gold
Portfolio's knowledge, no such return is currently under audit and no
assessment has been asserted with respect to such returns;
(j) Gold Portfolio has met the requirements of Subchapter M of the
Code for qualification and treatment as a regulated investment company
for all prior taxable years and intends to meet such requirements for
its current taxable year ending on February 29, 2000;
(k) As of the Closing Date, the shares of beneficial interest of Gold
Portfolio to be issued to Precious Metals and Minerals Portfolio will
have been duly authorized and, when issued and delivered pursuant to
this Agreement, will be legally and validly issued and will be fully
paid and nonassessable (except as disclosed in the Fund's Statement of
Additional Information) by Gold Portfolio, and no shareholder of Gold
Portfolio will have any preemptive right of subscription or purchase
in respect thereof;
(l) The execution, performance, and delivery of this Agreement will
have been duly authorized prior to the Closing Date by all necessary
corporate action on the part of Gold Portfolio, and this Agreement
constitutes a valid and binding obligation of Gold Portfolio
enforceable in accordance with its terms, subject to approval by the
shareholders of Precious Metals and Minerals Portfolio;
(m) The Registration Statement and the Proxy Statement, on the
effective date of the Registration Statement and insofar as they
relate to Gold Portfolio, (i) will comply in all material respects
with the provisions of the 1933 Act, the 1934 Act, and the 1940 Act,
and the rules and regulations thereunder, and (ii) will not contain
any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements
therein not misleading; and at the time of the shareholders' meeting
referred to in Section 7 and on the Closing Date, the Prospectus, as
amended or supplemented, insofar as it relates to Gold Portfolio, will
not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the
statements therein not misleading;
(n) The issuance of the Gold Portfolio Shares pursuant to this
Agreement will be in compliance with all applicable federal securities
laws; and
(o) All of the issued and outstanding shares of beneficial interest
of Gold Portfolio have been offered for sale and sold in conformity
with the federal securities laws.
3. REORGANIZATION.
(a) Subject to the requisite approval of the shareholders of Precious
Metals and Minerals Portfolio and to the other terms and conditions
contained herein, Precious Metals and Minerals Portfolio agrees to
assign, sell, convey, transfer, and deliver to Gold Portfolio as of
the Closing Date all of the assets of Precious Metals and Minerals
Portfolio of every kind and nature existing on the Closing Date. Gold
Portfolio agrees in exchange therefor: (i) to assume all of Precious
Metals and Minerals Portfolio's liabilities existing on or after the
Closing Date, whether or not determinable on the Closing Date, and
(ii) to issue and deliver to Precious Metals and Minerals Portfolio
the number of full and fractional shares of Gold Portfolio having an
aggregate net asset value equal to the value of the assets of Precious
Metals and Minerals Portfolio transferred hereunder, less the value of
the liabilities of Precious Metals and Minerals Portfolio, determined
as provided for under Section 4.
(b) The assets of Precious Metals and Minerals Portfolio to be
acquired by Gold Portfolio shall include, without limitation, all
cash, cash equivalents, securities, receivables (including interest or
dividends receivables), claims, choses in action, and other property
owned by Precious Metals and Minerals Portfolio, and any deferred or
prepaid expenses shown as an asset on the books of Precious Metals and
Minerals Portfolio on the Closing Date. Precious Metals and Minerals
Portfolio will pay or cause to be paid to Gold Portfolio any dividend
or interest payments received by it on or after the Closing Date with
respect to the assets transferred to Gold Portfolio hereunder, and
Gold Portfolio will retain any dividend or interest payments received
by it after the Valuation Time with respect to the assets transferred
hereunder without regard to the payment date thereof.
(c) The liabilities of Precious Metals and Minerals Portfolio to be
assumed by Gold Portfolio shall include (except as otherwise provided
for herein) all of Precious Metals and Minerals Portfolio's
liabilities, debts, obligations, and duties, of whatever kind or
nature, whether absolute, accrued, contingent, or otherwise, whether
or not arising in the ordinary course of business, whether or not
determinable on the Closing Date, and whether or not specifically
referred to in this Agreement. Notwithstanding the foregoing, Precious
Metals and Minerals Portfolio agrees to use its best efforts to
discharge all of its known liabilities prior to the Closing Date,
other than liabilities incurred in the ordinary course of business.
(d) Pursuant to this Agreement, as soon after the Closing Date as is
conveniently practicable, Precious Metals and Minerals Portfolio will
constructively distribute PRO RATA to its shareholders of record,
determined as of the Valuation Time on the Closing Date, the Gold
Portfolio Shares in exchange for such shareholders' shares of
beneficial interest in Precious Metals and Minerals Portfolio and
Precious Metals and Minerals Portfolio will be liquidated in
accordance with Precious Metals and Minerals Portfolio's Amended and
Restated Declaration of Trust. Such distribution shall be accomplished
by the Funds' transfer agent opening accounts on Gold Portfolio's
share transfer books in the names of the Precious Metals and Minerals
Portfolio shareholders and transferring the Gold Portfolio Shares
thereto. Each Precious Metals and Minerals Portfolio shareholder's
account shall be credited with the respective PRO RATA number of full
and fractional (rounded to the third decimal place) Gold Portfolio
Shares due that shareholder. All outstanding Precious Metals and
Minerals Portfolio shares, including any represented by certificates,
shall simultaneously be canceled on Precious Metals and Minerals
Portfolio's share transfer records. Gold Portfolio shall not issue
certificates representing the Gold Portfolio Shares in connection with
the Reorganization.
(e) Any reporting responsibility of Precious Metals and Minerals
Portfolio is and shall remain its responsibility up to and including
the date on which it is terminated.
(f) Any transfer taxes payable upon issuance of the Gold Portfolio
Shares in a name other than that of the registered holder on Precious
Metals and Minerals Portfolio's books of the Precious Metals and
Minerals Portfolio shares constructively exchanged for the Gold
Portfolio Shares shall be paid by the person to whom such Gold
Portfolio Shares are to be issued, as a condition of such transfer.
4. VALUATION.
(a) The Valuation Time shall be as of the close of business of the
New York Stock Exchange on the Closing Date, or such other date as may
be mutually agreed upon in writing by the parties hereto (the
Valuation Time).
(b) As of the Closing Date, Gold Portfolio will deliver to Precious
Metals and Minerals Portfolio the number of Gold Portfolio Shares
having an aggregate net asset value equal to the value of the assets
of Precious Metals and Minerals Portfolio transferred hereunder less
the liabilities of Precious Metals and Minerals Portfolio, determined
as provided in this Section 4.
(c) The net asset value per share of the Gold Portfolio Shares to be
delivered to Precious Metals and Minerals Portfolio, the value of the
assets of Precious Metals and Minerals Portfolio transferred
hereunder, and the value of the liabilities of Precious Metals and
Minerals Portfolio to be assumed hereunder shall in each case be
determined as of the Valuation Time.
(d) The net asset value per share of the Gold Portfolio Shares shall
be computed in the manner set forth in the then-current Gold Portfolio
Prospectus and Statement of Additional Information, and the value of
the assets and liabilities of Precious Metals and Minerals Portfolio
shall be computed in the manner set forth in the then-current Precious
Metals and Minerals Portfolio Prospectus and Statement of Additional
Information.
(e) All computations pursuant to this Section shall be made by or
under the direction of Fidelity Service Company, Inc., a wholly-owned
subsidiary of FMR Corp., in accordance with its regular practice as
pricing agent for Precious Metals and Minerals Portfolio and Gold
Portfolio.
5. FEES; EXPENSES.
(a) Precious Metals and Minerals Portfolio shall be responsible for
all expenses, fees and other charges in connection with the
transactions contemplated by this Agreement, provided that they do not
exceed the fund's 2.50% expense cap. Expenses exceeding the fund's
expense cap will be paid by FMR (but not including costs incurred in
connection with the purchase or sale of portfolio securities). Any
expenses incurred in connection with the transactions contemplated by
this Agreement which may be attributable to Gold Portfolio will be
borne by Gold Portfolio, provided that they do not exceed the fund's
2.50% expense cap. Expenses exceeding the fund's expense cap will be
paid by FMR (but not including costs incurred in connection with the
purchase or sale of portfolio securities).
(b) Each of Gold Portfolio and Precious Metals and Minerals Portfolio
represents that there is no person who has dealt with it who by reason
of such dealings is entitled to any broker's or finder's or other
similar fee or commission arising out of the transactions contemplated
by this Agreement.
6. CLOSING DATE.
(a) The Reorganization, together with related acts necessary to
consummate the same (the Closing), unless otherwise provided herein,
shall occur at an office of the Trust, 27 State Street, 10th Floor,
Boston, Massachusetts, as of the Valuation Time on February 29, 2000,
or at some other time, date, and place agreed to by Precious Metals
and Minerals Portfolio and Gold Portfolio (the Closing Date).
(b) In the event that on the Closing Date: (i) any of the markets for
securities held by the Funds is closed to trading, or (ii) trading
thereon is restricted, or (iii) trading or the reporting of trading on
said market or elsewhere is disrupted, all so that accurate appraisal
of the total net asset value of Precious Metals and Minerals Portfolio
and the net asset value per share of Gold Portfolio is impracticable,
the Valuation Time and the Closing Date shall be postponed until the
first business day after the day when such trading shall have been
fully resumed and such reporting shall have been restored, or such
other date as the parties may agree.
7. SHAREHOLDER MEETING AND TERMINATION OF PRECIOUS METALS AND MINERALS
PORTFOLIO.
(a) Precious Metals and Minerals Portfolio agrees to call a meeting
of its shareholders after the effective date of the Registration
Statement, to consider transferring its assets to Gold Portfolio as
herein provided, adopting this Agreement, and authorizing the
liquidation of Precious Metals and Minerals Portfolio.
(b) Precious Metals and Minerals Portfolio agrees that as soon as
reasonably practicable after distribution of the Gold Portfolio
Shares, Precious Metals and Minerals Portfolio shall be terminated as
a series of Fidelity Select Portfolios pursuant to its Amended and
Restated Declaration of Trust, any further actions shall be taken in
connection therewith as required by applicable law, and on and after
the Closing Date Precious Metals and Minerals Portfolio shall not
conduct any business except in connection with its liquidation and
termination.
8. CONDITIONS TO OBLIGATIONS OF GOLD PORTFOLIO.
(a) That Precious Metals and Minerals Portfolio furnishes to Gold
Portfolio a statement, dated as of the Closing Date, signed by an
officer of Fidelity Select Portfolios, certifying that as of the
Valuation Time and the Closing Date all representations and warranties
of Precious Metals and Minerals Portfolio made in this Agreement are
true and correct in all material respects and that Precious Metals and
Minerals Portfolio has complied with all the agreements and satisfied
all the conditions on its part to be performed or satisfied at or
prior to such dates;
(b) That Precious Metals and Minerals Portfolio furnishes Gold
Portfolio with copies of the resolutions, certified by an officer of
Fidelity Select Portfolios, evidencing the adoption of this Agreement
and the approval of the transactions contemplated herein by the
requisite vote of the holders of the outstanding shares of beneficial
interest of Precious Metals and Minerals Portfolio;
(c) That, on or prior to the Closing Date, Precious Metals and
Minerals Portfolio will declare one or more dividends or distributions
which, together with all previous such dividends or distributions
attributable to its current taxable year, shall have the effect of
distributing to the shareholders of Precious Metals and Minerals
Portfolio substantially all of Precious Metals and Minerals
Portfolio's investment company taxable income and all of its net
realized capital gain, if any, as of the Closing Date;
(d) That Precious Metals and Minerals Portfolio shall deliver to Gold
Portfolio at the Closing a statement of its assets and liabilities,
together with a list of its portfolio securities showing each such
security's adjusted tax basis and holding period by lot, with values
determined as provided in Section 4 of this Agreement, all as of the
Valuation Time, certified on Precious Metals and Minerals Portfolio's
behalf by its Treasurer or Assistant Treasurer;
(e) That Precious Metals and Minerals Portfolio's custodian shall
deliver to Gold Portfolio a certificate identifying the assets of
Precious Metals and Minerals Portfolio held by such custodian as of
the Valuation Time on the Closing Date and stating that as of the
Valuation Time: (i) the assets held by the custodian will be
transferred to Gold Portfolio; (ii) Precious Metals and Minerals
Portfolio's assets have been duly endorsed in proper form for transfer
in such condition as to constitute good delivery thereof; and (iii) to
the best of the custodian's knowledge, all necessary taxes in
conjunction with the delivery of the assets, including all applicable
federal and state stock transfer stamps, if any, have been paid or
provision for payment has been made;
(f) That Precious Metals and Minerals Portfolio's transfer agent
shall deliver to Gold Portfolio at the Closing a certificate setting
forth the number of shares of Precious Metals and Minerals Portfolio
outstanding as of the Valuation Time and the name and address of each
holder of record of any such shares and the number of shares held of
record by each such shareholder;
(g) That Precious Metals and Minerals Portfolio calls a meeting of
its shareholders to be held after the effective date of the
Registration Statement, to consider transferring its assets to Gold
Portfolio as herein provided, adopting this Agreement, and authorizing
the liquidation and termination of Precious Metals and Minerals
Portfolio;
(h) That Precious Metals and Minerals Portfolio delivers to Gold
Portfolio a certificate of an officer of Fidelity Select Portfolios,
dated as of the Closing Date, that there has been no material adverse
change in Precious Metals and Minerals Portfolio's financial position
since February 28, 1999, other than changes in the market value of its
portfolio securities, or changes due to net redemptions of its shares,
dividends paid, or losses from operations; and
(i) That all of the issued and outstanding shares of beneficial
interest of Precious Metals and Minerals Portfolio shall have been
offered for sale and sold in conformity with all applicable state
securities laws and, to the extent that any audit of the records of
Precious Metals and Minerals Portfolio or its transfer agent by Gold
Portfolio or its agents shall have revealed otherwise, Precious Metals
and Minerals Portfolio shall have taken all actions that in the
opinion of Gold Portfolio are necessary to remedy any prior failure on
the part of Precious Metals and Minerals Portfolio to have offered for
sale and sold such shares in conformity with such laws.
9. CONDITIONS TO OBLIGATIONS OF PRECIOUS METALS AND MINERALS
PORTFOLIO.
(a) That Gold Portfolio shall have executed and delivered to Precious
Metals and Minerals Portfolio an Assumption of Liabilities, certified
by an officer of Fidelity Select Portfolios, dated as of the Closing
Date pursuant to which Gold Portfolio will assume all of the
liabilities of Precious Metals and Minerals Portfolio existing at the
Valuation Time in connection with the transactions contemplated by
this Agreement;
(b) That Gold Portfolio furnishes to Precious Metals and Minerals
Portfolio a statement, dated as of the Closing Date, signed by an
officer of Fidelity Select Portfolios, certifying that as of the
Valuation Time and the Closing Date all representations and warranties
of Gold Portfolio made in this Agreement are true and correct in all
material respects, and Gold Portfolio has complied with all the
agreements and satisfied all the conditions on its part to be
performed or satisfied at or prior to such dates; and
(c) That Precious Metals and Minerals Portfolio shall have received
an opinion of Kirkpatrick & Lockhart LLP, counsel to Precious Metals
and Minerals Portfolio and Gold Portfolio, to the effect that the Gold
Portfolio Shares are duly authorized and upon delivery to Precious
Metals and Minerals Portfolio as provided in this Agreement will be
validly issued and will be fully paid and nonassessable by Gold
Portfolio (except as disclosed in Gold Portfolio's Statement of
Additional Information) and no shareholder of Gold Portfolio has any
preemptive right of subscription or purchase in respect thereof.
10. CONDITIONS TO OBLIGATIONS OF GOLD PORTFOLIO AND PRECIOUS METALS
AND MINERALS PORTFOLIO.
(a) That this Agreement shall have been adopted and the transactions
contemplated herein shall have been approved by the requisite vote of
the holders of the outstanding shares of beneficial interest of
Precious Metals and Minerals Portfolio;
(b) That all consents of other parties and all other consents,
orders, and permits of federal, state, and local regulatory
authorities (including those of the Commission and of state Blue Sky
and securities authorities, which term as used herein shall include
the District of Columbia and Puerto Rico, and including "no action"
positions of such federal or state authorities) deemed necessary by
Gold Portfolio or Precious Metals and Minerals Portfolio to permit
consummation, in all material respects, of the transactions
contemplated hereby shall have been obtained, except where failure to
obtain any such consent, order, or permit would not involve a risk of
a material adverse effect on the assets or properties of Gold
Portfolio or Precious Metals and Minerals Portfolio, provided that
either party hereto may for itself waive any of such conditions;
(c) That all proceedings taken by either Fund in connection with the
transactions contemplated by this Agreement and all documents
incidental thereto shall be satisfactory in form and substance to it
and its counsel, Kirkpatrick & Lockhart LLP;
(d) That there shall not be any material litigation pending with
respect to the matters contemplated by this Agreement;
(e) That the Registration Statement shall have become effective under
the 1933 Act, and no stop order suspending such effectiveness shall
have been instituted or, to the knowledge of Gold Portfolio and
Precious Metals and Minerals Portfolio, threatened by the Commission;
and
(f) That Gold Portfolio and Precious Metals and Minerals Portfolio
shall have received an opinion of Kirkpatrick & Lockhart LLP
satisfactory to Gold Portfolio and Precious Metals and Minerals
Portfolio that for federal income tax purposes:
(i) The Reorganization will be a reorganization under section
368(a)(1)(C) of the Code, and Precious Metals and Minerals Portfolio
and Gold Portfolio will each be parties to the Reorganization under
section 368(b) of the Code;
(ii) No gain or loss will be recognized by Precious Metals and
Minerals Portfolio upon the transfer of all of its assets to Gold
Portfolio in exchange solely for the Gold Portfolio Shares and the
assumption of Precious Metals and Minerals Portfolio's liabilities
followed by the distribution of those Gold Portfolio Shares to the
shareholders of Precious Metals and Minerals Portfolio in liquidation
of Precious Metals and Minerals Portfolio;
(iii) No gain or loss will be recognized by Gold Portfolio on the
receipt of Precious Metals and Minerals Portfolio's assets in exchange
solely for the Gold Portfolio Shares and the assumption of Precious
Metals and Minerals Portfolio's liabilities;
(iv) The basis of Precious Metals and Minerals Portfolio's assets in
the hands of Gold Portfolio will be the same as the basis of such
assets in Precious Metals and Minerals Portfolio's hands immediately
prior to the Reorganization;
(v) Gold Portfolio's holding period in the assets to be received
from Precious Metals and Minerals Portfolio will include Precious
Metals and Minerals Portfolio's holding period in such assets;
(vi) A Precious Metals and Minerals Portfolio shareholder will
recognize no gain or loss on the exchange of his or her shares of
beneficial interest in Precious Metals and Minerals Portfolio for the
Gold Portfolio Shares in the Reorganization;
(vii) A Precious Metals and Minerals Portfolio shareholder's basis
in the Gold Portfolio Shares to be received by him or her will be the
same as his or her basis in the Precious Metals and Minerals Portfolio
shares exchanged therefor;
(viii) A Precious Metals and Minerals Portfolio shareholder's
holding period for his or her Gold Portfolio Shares will include the
holding period of Precious Metals and Minerals Portfolio shares
exchanged, provided that those Precious Metals and Minerals Portfolio
shares were held as capital assets on the date of the Reorganization.
Notwithstanding anything herein to the contrary, neither Precious
Metals and Minerals Portfolio nor Gold Portfolio may waive the
conditions set forth in this subsection 10(f).
11. COVENANTS OF GOLD PORTFOLIO AND PRECIOUS METALS AND MINERALS
PORTFOLIO.
(a) Gold Portfolio and Precious Metals and Minerals Portfolio each
covenants to operate its respective business in the ordinary course
between the date hereof and the Closing Date, it being understood that
such ordinary course of business will include the payment of customary
dividends and distributions;
(b) Precious Metals and Minerals Portfolio covenants that it is not
acquiring the Gold Portfolio Shares for the purpose of making any
distribution other than in accordance with the terms of this
Agreement;
(c) Precious Metals and Minerals Portfolio covenants that it will
assist Gold Portfolio in obtaining such information as Gold Portfolio
reasonably requests concerning the beneficial ownership of Precious
Metals and Minerals Portfolio's shares; and
(d) Precious Metals and Minerals Portfolio covenants that its
liquidation and termination will be effected in the manner provided in
its Amended and Restated Declaration of Trust in accordance with
applicable law and after the Closing Date, Precious Metals and
Minerals Portfolio will not conduct any business except in connection
with its liquidation and termination.
12. TERMINATION; WAIVER.
Gold Portfolio and Precious Metals and Minerals Portfolio may
terminate this Agreement by mutual agreement. In addition, either Gold
Portfolio or Precious Metals and Minerals Portfolio may at its option
terminate this Agreement at or prior to the Closing Date because:
(i) of a material breach by the other of any representation,
warranty, or agreement contained herein to be performed at or prior to
the Closing Date; or
(ii) a condition herein expressed to be precedent to the obligations
of the terminating party has not been met and it reasonably appears
that it will not or cannot be met.
In the event of any such termination, there shall be no liability for
damages on the part of Precious Metals and Minerals Portfolio or Gold
Portfolio, or their respective Trustees or officers.
13. SOLE AGREEMENT; AMENDMENTS; WAIVERS; SURVIVAL OF WARRANTIES.
(a) This Agreement supersedes all previous correspondence and oral
communications between the parties regarding the subject matter
hereof, constitutes the only understanding with respect to such
subject matter, may not be changed except by a letter of agreement
signed by each party hereto and shall be construed in accordance with
and governed by the laws of the Commonwealth of Massachusetts.
(b) This Agreement may be amended, modified, or supplemented in such
manner as may be mutually agreed upon in writing by the respective
President, any Vice President, or Treasurer of Gold Portfolio or
Precious Metals and Minerals Portfolio; provided, however, that
following the shareholders' meeting called by Precious Metals and
Minerals Portfolio pursuant to Section 7 of this Agreement, no such
amendment may have the effect of changing the provisions for
determining the number of Gold Portfolio Shares to be paid to Precious
Metals and Minerals Portfolio shareholders under this Agreement to the
detriment of such shareholders without their further approval.
(c) Either Fund may waive any condition to its obligations hereunder,
provided that such waiver does not have any material adverse effect on
the interests of such Fund's shareholders.
The representations, warranties, and covenants contained in the
Agreement, or in any document delivered pursuant hereto or in
connection herewith, shall survive the consummation of the
transactions contemplated hereunder.
14. DECLARATION OF TRUST.
A copy of the Funds' Declaration of Trust, as restated and amended,
is on file with the Secretary of State of the Commonwealth of
Massachusetts, and notice is hereby given that this instrument is
executed on behalf of the Trustees of each Fund as trustees and not
individually and that the obligations of each Fund under this
instrument are not binding upon any of such Fund's Trustees, officers,
or shareholders individually but are binding only upon the assets and
property of such Fund. Each Fund agrees that its obligations hereunder
apply only to such Fund and not to its shareholders individually or to
the Trustees of such Fund.
15. ASSIGNMENT.
This Agreement shall bind and inure to the benefit of the parties
hereto and their respective successors and assigns, but no assignment
or transfer of any rights or obligations hereunder shall be made by
any party without the written consent of the other parties. Nothing
herein expressed or implied is intended or shall be construed to
confer upon or give any person, firm, or corporation other than the
parties hereto and their respective successors and assigns any rights
or remedies under or by reason of this Agreement.
This Agreement may be executed in any number of counterparts, each of
which, when executed and delivered, shall be deemed to be an original.
IN WITNESS WHEREOF, each of the parties hereto has caused this
Agreement to be executed by an appropriate officer.
[SIGNATURE LINES OMITTED]
PMM-pxs-1299 CUSIP #316390400/FUND #061
1.731662.100
IMPORTANT PROXY MATERIALS
PLEASE CAST YOUR VOTE NOW!
Dear Shareholder:
I am writing to ask you for your vote on an important proposal to
merge Fidelity Select Precious Metals and Minerals Portfolio into
Fidelity Select Gold Portfolio. A shareholder meeting is scheduled
for February 16, 2000. Votes received in time to be counted at the
meeting will decide whether the merger takes place. This package
contains information about the proposal and includes all the materials
you will need to vote by mail.
The fund's Board of Trustees has reviewed the proposed merger and has
recommended that the proposed merger be presented to shareholders.
The Trustees, most of whom are not affiliated with Fidelity, are
responsible for protecting your interests as a shareholder. The
Trustees have determined that the proposed merger is in shareholders'
best interest. However, the final decision is up to you.
The proposed merger would give shareholders of Fidelity Select
Precious Metals and Minerals Portfolio the opportunity to participate
in a larger fund with similar investment policies. The combined fund
would also have lower expenses. As you know, in anticipation of the
proposed merger, Fidelity Select Precious Metals and Minerals
Portfolio was closed to new investments at the close of business on
December 20, 1999. We have attached a Q&A to assist you in
understanding the proposal. The enclosed proxy statement includes a
detailed description of the proposed merger.
Please read the enclosed materials and promptly cast your vote on the
proxy card. You are entitled to one vote for each dollar of net asset
value you own of the fund on the record date, which is December 20,
1999. Your vote is extremely important, no matter how large or small
your holdings may be.
VOTING BY MAIL IS QUICK AND EASY. EVERYTHING YOU NEED IS ENCLOSED.
To cast your vote, simply complete the proxy card enclosed in this
package. Be sure to sign the card before mailing it in the
postage-paid envelope provided.
If you have any questions before you vote, please call us at
1-800-544-8888. We will be glad to help you get your vote in quickly.
Thank you for your participation in this important initiative for your
fund.
Sincerely,
Edward C. Johnson 3d
Chairman and Chief Executive Officer
Important information to help you understand and vote on the proposal
Please read the full text of the enclosed proxy statement. Below is a
brief overview of the proposal to be voted upon. Your vote is
important. We appreciate you placing your trust in Fidelity and look
forward to helping you achieve your financial goals.
WHAT PROPOSAL AM I BEING ASKED TO VOTE ON?
You are being asked to approve a merger of Fidelity Select Precious
Metals and Minerals Portfolio into Fidelity Select Gold Portfolio.
WHAT IS THE REASON FOR AND ADVANTAGES OF THIS MERGER?
The merger would allow Fidelity to maintain the Select Portfolios'
coverage of the gold and precious metals sectors while concentrating
its investment expertise on one fund. The merger would also simplify
the Select Portfolios' offerings by consolidating similar funds.
DO THE FUNDS BEING MERGED HAVE SIMILAR INVESTMENT STRATEGIES ?
Both funds have substantially similar investment strategies. Both
funds seek capital appreciation by investing their assets primarily in
common stocks and in certain precious metals. Fidelity Select
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.
Fidelity Select 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. In addition, both funds have generally similar
portfolios in terms of holdings , and both funds have the same
portfolio manager.
WHO IS THE FUND MANAGER FOR THESE FUNDS?
George Domolky currently manages both funds and is expected to manage
the combined fund.
WILL TOTAL EXPENSES BE LIMITED FOLLOWING THE MERGER?
If the merger is approved, Fidelity has agreed to limit the combined
fund's total operating expenses to 1.54% of its average net assets
through February 28, 2001. After that date, the combined fund's
expenses could increase or decrease.
WHAT WILL BE THE NAME OF THE COMBINED FUND AFTER THE MERGER IS
COMPLETED?
If shareholders of Fidelity Select Precious Metals and Minerals
Portfolio approve the merger of their fund into Fidelity Select Gold
Portfolio, the combined fund's name will remain Fidelity Select Gold
Portfolio.
IS THE MERGER A TAXABLE EVENT FOR FEDERAL INCOME TAX PURPOSES?
Typically, the exchange of shares pursuant to a merger does not result
in a gain or loss for federal income tax purposes.
WHAT WILL BE THE SIZE OF FIDELITY SELECT GOLD PORTFOLIO AFTER THE
MERGER?
If the proposal is approved, the combined fund is anticipated to have
over $250 million in assets, based on current asset levels.
HOW WILL YOU DETERMINE THE NUMBER OF SHARES OF FIDELITY SELECT GOLD
PORTFOLIO THAT I WILL RECEIVE?
Shareholders will receive the number of full and fractional shares of
Fidelity Select Gold Portfolio that is equal in value to the net asset
value of their shares of Fidelity Select Precious Metals and Minerals
Portfolio as last determined on the Closing Date of the merger. The
anticipated Closing Date is February 29, 2000.
WHAT IF THERE ARE NOT ENOUGH VOTES TO REACH QUORUM BY THE SCHEDULED
SHAREHOLDER MEETING DATE?
To facilitate receiving sufficient votes, we will need to take further
action. Fidelity, or D.F. King & Co., Inc. or Management Information
Services Corp., proxy solicitation firms, may contact you by mail or
telephone. Therefore, we encourage shareholders to vote as soon as
they review the enclosed proxy materials to avoid additional mailings
or telephone calls.
If there are not sufficient votes to approve the proposal by the time
of the shareholder meeting (February 16, 2000), the meeting may be
adjourned to permit further solicitation of proxy votes.
HAS THE FUND'S BOARD OF TRUSTEES APPROVED THE PROPOSAL?
Yes. The Board of Trustees has unanimously approved the proposal and
recommends that you vote to approve it.
HOW MANY VOTES AM I ENTITLED TO CAST?
As a shareholder, you are entitled to one vote for each dollar of net
asset value you own of Fidelity Select Precious Metals and Minerals
Portfolio on the record date. The record date is December 20, 1999.
HOW DO I VOTE MY SHARES?
You can vote your shares by completing and signing the enclosed proxy
card, and mailing it in the enclosed postage paid envelope. If you
need any assistance, or have any questions regarding the proposal or
how to vote your shares, please call Fidelity at 800-544-8888.
HOW DO I SIGN THE PROXY CARD?
INDIVIDUAL ACCOUNTS: Shareholders should sign exactly as their names
appear on the account registration shown on the
card.
JOINT ACCOUNTS: Either owner may sign, but the name of the person
signing should conform exactly to a name shown in
the registration.
ALL OTHER ACCOUNTS: The person signing must indicate his or her
capacity. For example, a trustee for a trust or
other entity should sign, "Ann B. Collins,
Trustee."
Vote this proxy card TODAY! Your prompt response will
save the expense of additional mailings.
Return the proxy card in the enclosed envelope or mail to:
FIDELITY INVESTMENTS
Proxy Department
P.O. Box 9107
Hingham, MA 02043-9848
PLEASE DETACH AT PERFORATION BEFORE MAILING.
- ----------------------------------------------------------------------
FIDELITY SELECT PORTFOLIOS:
FIDELITY SELECT PRECIOUS METALS AND MINERALS PORTFOLIO
PROXY SOLICITED BY THE TRUSTEES
The undersigned, revoking previous proxies, hereby appoint(s) Edward
C. Johnson 3d, Eric D. Roiter, and Gerald McDonough, or any one or
more of them, attorneys, with full power of substitution, to vote all
shares of FIDELITY SELECT PORTFOLIOS: FIDELITY SELECT PRECIOUS METALS
AND MINERALS PORTFOLIO, which the undersigned is entitled to vote at
the Special Meeting of Shareholders of the fund to be held at an
office of the trust at 27 State Street, 10th Floor, Boston, MA 02109,
on February 16, 2000, at 9:00 a.m. Eastern time and at any
adjournments thereof. All powers may be exercised by a majority of
said proxy holders or substitutes voting or acting or, if only one
votes and acts, then by that one. This Proxy shall be voted on the
proposals described in the Proxy Statement as specified on the reverse
side. Receipt of the Notice of the Meeting and the accompanying Proxy
Statement is hereby acknowledged.
NOTE: Please sign exactly as your name appears on
this Proxy. When signing in a fiduciary capacity,
such as executor, administrator, trustee, attorney,
guardian, etc., please so indicate. Corporate and
partnership proxies should be signed by an authorized
person indicating the person's title.
Date
Signature(s) (Title(s), if applicable)
PLEASE SIGN, DATE, AND RETURN
PROMPTLY IN ENCLOSED ENVELOPE
cusip # 316390400/fund# 061
Please refer to the Proxy Statement discussion of this matter.
IF NO SPECIFICATION IS MADE, THE PROXY SHALL BE VOTED FOR THE
PROPOSAL.
As to any other matter, said attorneys shall vote in accordance with
their best judgment.
THE BOARD OF TRUSTEES RECOMMENDS A VOTE FOR THE FOLLOWING:
PLEASE DETACH AT PERFORATION BEFORE MAILING.
PLEASE VOTE BY FILLING IN THE APPROPRIATE BOX BELOW.
- ----------------------------------------------------------------------
______________________________________________________________________
1. To approve an Agreement and FOR [ ] AGAINST [ ] ABSTAIN [ ] 1.
Plan of Reorganization
between Fidelity Select
Precious Metals and Minerals
Portfolio and Fidelity
Select Gold Portfolio
providing for the transfer
of all of the assets of
Fidelity Select Precious
Metals and Minerals
Portfolio to Fidelity Select
Gold Portfolio in exchange
solely for shares of
beneficial interest of
Fidelity Select Gold
Portfolio and the assumption
by Fidelity Select Gold
Portfolio of Fidelity Select
Precious Metals and Minerals
Portfolio's liabilities,
followed by the distribution
of Fidelity Select Gold
Portfolio shares to
shareholders of Fidelity
Select Precious Metals and
Minerals Portfolio in
liquidation of Fidelity
Select Precious Metals and
Minerals Portfolio.
MET-PXC-1299 cusip # 316390400/fund# 061
Like securities of all mutual funds, these securities have
not been approved or disapproved by the Securities
and Exchange Commission, and the Securities and
Exchange Commission has not determined if this
prospectus is accurate or complete. Any
representation to the contrary is a criminal offense.
FIDELITY
SELECT
PORTFOLIOS(REGISTERED TRADEMARK)
FUND TRADING
NUMBER SYMBOL
AIR TRANSPORTATION PORTFOLIO 034 FSAIX
AUTOMOTIVE PORTFOLIO 502 FSAVX
BIOTECHNOLOGY PORTFOLIO 042 FBIOX
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO 068 FSLBX
BUSINESS SERVICES AND OUTSOURCING 353 FBSOX
CHEMICALS PORTFOLIO 069 FSCHX
COMPUTERS PORTFOLIO 007 FDCPX
CONSTRUCTION AND HOUSING PORTFOLIO 511 FSHOX
CONSUMER INDUSTRIES PORTFOLIO 517 FSCPX
CYCLICAL INDUSTRIES PORTFOLIO 515 FCYCF
DEFENSE AND AEROSPACE PORTFOLIO 067 FSDAX
DEVELOPING COMMUNICATIONS PORTFOLIO 518 FSDCX
ELECTRONICS PORTFOLIO 008 FSELX
ENERGY PORTFOLIO 060 FSENX
ENERGY SERVICE PORTFOLIO 043 FSESX
ENVIRONMENTAL SERVICES PORTFOLIO 516 FSLEX
FINANCIAL SERVICES PORTFOLIO 066 FIDSX
FOOD AND AGRICULTURE PORTFOLIO 009 FDFAX
GOLD PORTFOLIO 041 FSAGX
HEALTH CARE PORTFOLIO 063 FSPHX
HOME FINANCE PORTFOLIO 098 FSVLX
INDUSTRIAL EQUIPMENT PORTFOLIO 510 FSCGX
INDUSTRIAL MATERIALS PORTFOLIO 509 FSDPX
INSURANCE PORTFOLIO 045 FSPCX
LEISURE PORTFOLIO 062 FDLSX
MEDICAL DELIVERY PORTFOLIO 505 FSHCX
MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO 354 FSMEX
MULTIMEDIA PORTFOLIO 503 FBMPX
NATURAL GAS PORTFOLIO 513 FSNGX
NATURAL RESOURCES PORTFOLIO 514 FNATF
PAPER AND FOREST PRODUCTS PORTFOLIO 506 FSPFX
PRECIOUS METALS AND MINERALS PORTFOLIO 061 FDPMX
REGIONAL BANKS PORTFOLIO 507 FSRBX
RETAILING PORTFOLIO 046 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 FSLXX
PROSPECTUS
APRIL 29, 1999
(FIDELITY_LOGO_GRAPHIC)(registered trademark)
82 DEVONSHIRE STREET, BOSTON, MA 02109
CONTENTS
FUND SUMMARY 26 INVESTMENT SUMMARY
41 PERFORMANCE
64 FEE TABLE
FUND BASICS 81 INVESTMENT DETAILS
94 VALUING SHARES
SHAREHOLDER INFORMATION 94 BUYING AND SELLING SHARES
102 EXCHANGING SHARES
102 ACCOUNT FEATURES AND POLICIES
105 DIVIDENDS AND CAPITAL GAINS
DISTRIBUTIONS
105 TAX CONSEQUENCES
FUND SERVICES 106 FUND MANAGEMENT
109 FUND DISTRIBUTION
APPENDIX 110 FINANCIAL HIGHLIGHTS
FUND SUMMARY
INVESTMENT SUMMARY
THE STOCK FUNDS
INVESTMENT OBJECTIVE
AIR TRANSPORTATION PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
Fidelity Management & Research Company (FMR)'s principal investment
strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the regional, national, and
international movement of passengers, mail, and freight via aircraft.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) AIR TRANSPORTATION INDUSTRY CONCENTRATION. The
air transportation industry can be significantly affected by
competition within the industry, domestic and foreign economies,
government regulation, and the price of fuel.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
AUTOMOTIVE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the manufacture, marketing or sale of
automobiles, trucks, specialty vehicles, parts, tires, and related
services.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) AUTOMOTIVE INDUSTRY CONCENTRATION. The automotive
industry is highly cyclical and can be significantly affected by labor
relations and fluctuating component prices.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
BIOTECHNOLOGY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the research, development, and
manufacture of various biotechnological products, services, and
processes.
(small solid bullet) Potentially investing in securities of companies
that distribute biotechnological and biomedical products and companies
that benefit significantly from scientific and technological advances
in biotechnology.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) BIOTECHNOLOGY INDUSTRY CONCENTRATION. The
biotechnology industry can be significantly affected by patent
considerations, intense competition, rapid technological change and
obsolescence, and government regulation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO seeks capital
appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in stock brokerage, commodity brokerage,
investment banking, tax-advantaged investment or investment sales,
investment management, or related investment advisory services.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) BROKERAGE AND INVESTMENT MANAGEMENT INDUSTRY
CONCENTRATION. The brokerage and investment management industry can be
significantly affected by stock and bond market activity, changes in
regulations, brokerage commission structure, and a competitive
environment combined with the high operating leverage inherent in
companies in this industry.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO seeks capital
appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in providing business-related services
to companies and other organizations.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) BUSINESS SERVICES AND OUTSOURCING INDUSTRY
CONCENTRATION. The business services and outsourcing industry is
subject to continued demand for such services and can be significantly
affected by competitive pressures, such as technological developments,
fixed-rate pricing, and the ability to attract and retain skilled
employees.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
CHEMICALS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the research, development,
manufacture or marketing of products or services related to the
chemical process industries.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CHEMICAL INDUSTRY CONCENTRATION. The chemical
industry can be significantly affected by intense competition, product
obsolescence, and government regulation and can be subject to risks
associated with the production, handling and disposal of hazardous
components.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
COMPUTERS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally 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.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) COMPUTER INDUSTRY CONCENTRATION. The computer
industry can be significantly affected by competitive pressures,
changing domestic and international demand, research and development
costs, and product obsolescence.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
CONSTRUCTION AND HOUSING PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally 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.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CONSTRUCTION AND HOUSING INDUSTRY CONCENTRATION.
The construction and housing industry can be significantly affected by
changes in government spending, interest rates, consumer confidence
and spending, taxation, demographic patterns, housing starts and the
level of new and existing home sales.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
CONSUMER INDUSTRIES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the manufacture and distribution of
goods to consumers both domestically and internationally.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CONSUMER INDUSTRY CONCENTRATION. The consumer
industries can be significantly affected by the performance of the
overall economy, interest rates, competition, consumer confidence and
spending, and changes in demographics and consumer tastes.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
CYCLICAL INDUSTRIES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the research, development,
manufacture, distribution, supply, or sale of materials, equipment,
products or services related to cyclical industries.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) CYCLICAL INDUSTRY CONCENTRATION. Cyclical
industries can be significantly affected by general economic trends,
changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition, and can be subject to liability for
environmental damage, depletion of resources, and mandated
expenditures for safety and pollution control.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
DEFENSE AND AEROSPACE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the research, manufacture or sale of
products or services related to the defense or aerospace industries.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) DEFENSE AND AEROSPACE INDUSTRY CONCENTRATION. The
defense and aerospace industry can be significantly affected by
government defense and aerospace regulation and spending policies.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
DEVELOPING COMMUNICATIONS PORTFOLIO seeks capital appreciation.
The fund is subject to the following principal investment risks:
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the development, manufacture or sale
of emerging communications services or equipment.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) DEVELOPING COMMUNICATIONS INDUSTRY CONCENTRATION.
The developing communications industry can be significantly affected
by failure to obtain, or delays in obtaining, financing or regulatory
approval, intense competition, product compatibility, consumer
preferences, and rapid obsolescence.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
ELECTRONICS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the design, manufacture, or sale of
electronic components; equipment vendors to electronic component
manufacturers; electronic component distributors; and electronic
instruments and electronic systems vendors.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) ELECTRONICS INDUSTRY CONCENTRATION. The
electronics industry can be significantly affected by rapid
obsolescence, intense competition and global demand.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
ENERGY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged 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.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) ENERGY INDUSTRY CONCENTRATION. The energy
industry can be significantly affected by fluctuations in price and
supply of energy fuels, energy conservation, the success of
exploration projects, and tax and other government regulations.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
ENERGY SERVICE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged 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.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) ENERGY SERVICE INDUSTRY CONCENTRATION. The energy
service industry can be significantly affected by the supply of and
demand for specific products or services, the supply of and demand for
oil and gas, the price of oil and gas, exploration and production
spending, government regulation, world events, and economic
conditions.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
ENVIRONMENTAL SERVICES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the research, development,
manufacture or distribution of products, processes or services related
to waste management or pollution control.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) ENVIRONMENTAL SERVICES INDUSTRY CONCENTRATION.
The environmental services industry can be significantly affected by
intense competition and legislation resulting in more strict
government regulations and enforcement policies and specific
expenditures for cleanup efforts, and can be subject to risks
associated with hazardous materials.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
FINANCIAL SERVICES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in providing financial services to
consumers and industry.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) FINANCIAL SERVICES INDUSTRY CONCENTRATION. The
financial services industries are subject to extensive government
regulation and relatively rapid change due to increasingly blurred
distinctions between service segments, and can be significantly
affected by availability and cost of capital funds, changes in
interest rates, and price competition.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
FOOD AND AGRICULTURE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the manufacture, sale, or
distribution of food and beverage products, agricultural products, and
products related to the development of new food technologies.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) FOOD AND AGRICULTURE INDUSTRY CONCENTRATION. The
food and agriculture industry can be significantly affected by
demographic and product trends, food fads, marketing campaigns,
environmental factors and government regulation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
GOLD PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks and in
certain precious metals.
(small solid bullet) Investing 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.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in gold-related activities, and in gold
bullion or coins.
(small solid bullet) Potentially investing in other precious metals,
securities indexed to the price of precious metals, and securities of
companies that manufacture and distribute precious metal and minerals
products (such as jewelry, watches, and metal foil and leaf) and
companies that invest in other companies engaged in gold and other
precious metal and mineral-related activities.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) GOLD INDUSTRY CONCENTRATION. The gold industry
can be significantly affected by international monetary and political
developments such as currency devaluations or revaluations, central
bank movements, economic and social conditions within a country, trade
imbalances, or trade or currency restrictions between countries.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
HEALTH CARE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the design, manufacture, or sale of
products or services used for or in connection with health care or
medicine.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) HEALTH CARE INDUSTRY CONCENTRATION. The health
care industries are subject to government regulation and government
approval of products and services, which could have a significant
effect on price and availability, and can be significantly affected by
rapid obsolescence.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
HOME FINANCE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in investing in real estate, usually
through mortgages and other consumer-related loans.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) HOME FINANCE INDUSTRY CONCENTRATION. The home
finance industry can be significantly affected by regulatory changes,
interest rate movements, home mortgage demand, refinancing activity,
and residential delinquency trends.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
INDUSTRIAL EQUIPMENT PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally 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.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) INDUSTRIAL EQUIPMENT INDUSTRY CONCENTRATION. The
industrial equipment industry can be significantly affected by overall
capital spending levels, economic cycles, technical obsolescence,
labor relations, and government regulations.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
INDUSTRIAL MATERIALS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the manufacture, mining, processing,
or distribution of raw materials and intermediate goods used in the
industrial sector.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) INDUSTRIAL MATERIALS INDUSTRY CONCENTRATION. The
industrial materials industry can be significantly affected by the
level and volatility of commodity prices, the exchange value of the
dollar, import controls, worldwide competition, liability for
environmental damage, depletion of resources, and mandated
expenditures for safety and pollution control.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
INSURANCE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in underwriting, reinsuring, selling,
distributing, or placing of property and casualty, life, or health
insurance.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) INSURANCE INDUSTRY CONCENTRATION. The insurance
industry is subject to extensive government regulation and can be
significantly affected by interest rates, general economic conditions,
and price and marketing competition. Different segments of the
industry can be significantly affected by natural disasters, mortality
and morbidity rates, and environmental clean-up.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
LEISURE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the design, production, or
distribution of goods or services in the leisure industries.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) LEISURE INDUSTRY CONCENTRATION. The leisure
industry can be significantly affected by changing consumer tastes,
intense competition, technological developments and government
regulation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
MEDICAL DELIVERY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the ownership or management of
hospitals, nursing homes, health maintenance organizations, and other
companies specializing in the delivery of health care services.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) MEDICAL DELIVERY INDUSTRY CONCENTRATION. The
medical delivery industry is subject to extensive government
regulation and can be significantly affected by government
reimbursement for medical expenses, rising costs of medical products
and services, a shift away from traditional health insurance, and an
increased emphasis on outpatient services.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in research, development, manufacture,
distribution, supply or sale of medical equipment and devices and
related technologies.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) MEDICAL EQUIPMENT AND SYSTEMS INDUSTRY
CONCENTRATION. The medical equipment and systems industry can be
significantly affected by patent considerations, rapid technological
change and obsolescence, government regulation, and government
reimbursement for medical expenses.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
MULTIMEDIA PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the development, production, sale,
and distribution of goods or services used in the broadcast and media
industries.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) MULTIMEDIA INDUSTRY CONCENTRATION. The multimedia
industry can be significantly affected by the federal deregulation of
cable and broadcasting, competitive pressures and government
regulation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
NATURAL GAS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally 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.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) NATURAL GAS INDUSTRY CONCENTRATION. The natural
gas industry is subject to changes in price and supply of energy
sources and can be significantly affected by events relating to
international politics, energy conservation, the success of energy
source exploration projects, and tax and other government regulations.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
NATURAL RESOURCES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks and in
certain precious metals.
(small solid bullet) Investing primarily in companies that own or
develop natural resources, or supply goods and services to such
companies.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in owning or developing natural
resources, or supplying goods and services to such companies, and in
precious metals.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) NATURAL RESOURCES INDUSTRY CONCENTRATION. The
natural resources industries can be significantly affected by events
relating to international political and economic developments, energy
conservation, the success of exploration projects, and tax and other
government regulations.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
PAPER AND FOREST PRODUCTS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally 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.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) PAPER AND FOREST PRODUCTS INDUSTRY CONCENTRATION.
The paper and forest products industry can be significantly affected
by the health of the economy, worldwide production capacity, and
interest rates.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
PRECIOUS METALS AND MINERALS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks and in
certain precious metals.
(small solid bullet) Investing primarily in companies engaged in
exploration, mining, processing, or dealing in gold, silver, platinum,
diamonds, or other precious metals and minerals.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in exploration, mining, processing, or
dealing in gold, silver, platinum, diamonds, or other precious metals
and minerals, and in precious metals.
(small solid bullet) Potentially investing in securities of companies
that invest in other companies engaged in gold and other precious
metal and mineral-related activities.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) PRECIOUS METALS AND MINERALS INDUSTRY
CONCENTRATION. The precious metals and minerals industry can be
significantly affected by international political and monetary
developments such as currency devaluations or revaluations, economic
and social conditions within a country, trade imbalances, or trade or
currency restrictions between countries.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
REGIONAL BANKS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally 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).
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) REGIONAL BANKS INDUSTRY CONCENTRATION. The
regional banking industry can be significantly affected by legislation
that would reduce the separation between commercial and investment
banking businesses and could change capitalization requirements and
the savings and loan industry and increase competition, and by changes
in general economic conditions and interest rates.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
RETAILING PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in merchandising finished goods and
services primarily to individual consumers.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) RETAIL INDUSTRY CONCENTRATION. The retail
industry can be significantly affected by consumer confidence and
spending, intense competition, and changing consumer tastes.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
SOFTWARE AND COMPUTER SERVICES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in research, design, production or
distribution of products or processes that relate to software or
information-based services.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) SOFTWARE AND COMPUTER SERVICES INDUSTRY
CONCENTRATION. The software and computer services industry can be
significantly affected by competitive pressures, which can lead to
aggressive pricing and slower selling cycles.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
TECHNOLOGY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in offering, using or developing
products, processes or services that will provide or will benefit
significantly from technological advances and improvements.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) TECHNOLOGY INDUSTRY CONCENTRATION. The technology
industries can be significantly affected by obsolescence of existing
technology, short product cycles, falling prices and profits, and
competition from new market entrants.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
TELECOMMUNICATIONS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the development, manufacture, or sale
of communications services or communications equipment.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) TELECOMMUNICATIONS INDUSTRY CONCENTRATION. The
telecommunications industry is subject to government regulation of
rates of return and services that may be offered and can be
significantly affected by intense competition.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
TRANSPORTATION PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in providing transportation services or
companies principally engaged in the design, manufacture,
distribution, or sale of transportation equipment.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) TRANSPORTATION INDUSTRY CONCENTRATION. The
transportation industry can be significantly affected by changes in
the economy, fuel prices, labor relations, insurance costs and
government regulation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
INVESTMENT OBJECTIVE
UTILITIES GROWTH PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in the public utilities industry and
companies deriving a majority of their revenues from their public
utility operations.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) STOCK MARKET VOLATILITY. Stock markets are
volatile and can decline significantly in response to adverse issuer,
political, regulatory, market or economic developments. Different
parts of the market can react differently to these developments.
(small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more
volatile than the U.S. market due to increased risks of adverse
issuer, political, regulatory, market or economic developments and can
perform differently than the U.S. market.
(small solid bullet) UTILITIES INDUSTRY CONCENTRATION. The utilities
industries can be significantly affected by government regulation,
financing difficulties, supply and demand of services or fuel, and
natural resource conservation.
(small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an
individual security or particular type of security can be more
volatile than the market as a whole and can perform differently than
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
In addition, each stock fund (except Financial Services, Home Finance
and Regional Banks) is considered non-diversified and can invest a
greater portion of assets in securities of individual issuers than a
diversified fund. As a result, changes in the market value of a single
issuer could cause greater fluctuations in share price than would
occur in a more diversified fund.
An investment in a stock fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency.
When you sell your shares of a stock fund, they could be worth more or
less than what you paid for them.
THE MONEY MARKET FUND
INVESTMENT OBJECTIVE
MONEY MARKET PORTFOLIO seeks to provide high current income,
consistent with preservation of capital and liquidity.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing in U.S. dollar-denominated money market
securities, including U.S. Government securities and repurchase
agreements, and entering into reverse repurchase agreements.
(small solid bullet) Investing at least 80% of assets in money market
instruments.
(small solid bullet) Investing more than 25% of total assets in the
financial services industry.
(small solid bullet) Investing in compliance with industry-standard
requirements for money market funds for the quality, maturity and
diversification of investments.
PRINCIPAL INVESTMENT RISKS
The fund is subject to the following principal investment risks:
(small solid bullet) INTEREST RATE CHANGES. Interest rate increases
can cause the price of a money market security to decrease.
(small solid bullet) FOREIGN EXPOSURE. Entities located in foreign
countries can be affected by adverse political, regulatory, market or
economic developments in those countries.
(small solid bullet) FINANCIAL SERVICES EXPOSURE. Changes in
government regulation and interest rates and economic downturns can
have a significant negative affect on issuers in the financial
services sector.
(small solid bullet) ISSUER-SPECIFIC CHANGES. A decline in the credit
quality of an issuer or the provider of credit support or a
maturity-shortening structure for a security can cause the price of a
money market security to decrease.
An investment in the fund is not a deposit of a bank and is not
insured or guaranteed by the Federal Deposit Insurance Corporation or
any other government agency. Although the fund seeks to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in the fund.
PERFORMANCE
The following information illustrates the changes in the funds'
performance from year to year and compares the stock funds'
performance to the performance of a market index and an additional
index over various periods of time. Returns are based on past results
and are not an indication of future performance.
Because Business Services and Outsourcing and Medical Equipment and
Systems were new when this prospectus was printed, their performance
history is not included. Performance history will be available for
Business Services and Outsourcing and Medical Equipment and Systems
after each fund has been in operation for one calendar year.
YEAR-BY-YEAR RETURNS
The returns in the chart do not include the effect of each fund's
front-end sales charge. If the effect of the sales charge was
reflected, returns would be lower than those shown.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AIR TRANSPORTATION
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
26.33% -18.18% 37.06% 6.57% 30.89% -21.74% 59.54% 1.25% 31.14% 6.42%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 26.33
Row: 2, Col: 1, Value: -18.18
Row: 3, Col: 1, Value: 37.06
Row: 4, Col: 1, Value: 6.57
Row: 5, Col: 1, Value: 30.89
Row: 6, Col: 1, Value: -21.74
Row: 7, Col: 1, Value: 59.54
Row: 8, Col: 1, Value: 1.25
Row: 9, Col: 1, Value: 31.14
Row: 10, Col: 1, Value: 6.42
DURING THE PERIODS SHOWN IN THE CHART FOR AIR TRANSPORTATION, THE
HIGHEST RETURN FOR A QUARTER WAS 23.90% (QUARTER ENDING MARCH 31,
1991) AND THE LOWEST RETURN FOR A QUARTER WAS -26.72% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR AIR TRANSPORTATION
WAS 14.82%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AUTOMOTIVE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
4.10% -6.72% 37.33% 41.61% 35.38% -12.75% 13.43% 16.07% 16.78% 4.94%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 4.1
Row: 2, Col: 1, Value: -6.72
Row: 3, Col: 1, Value: 37.33
Row: 4, Col: 1, Value: 41.61
Row: 5, Col: 1, Value: 35.38
Row: 6, Col: 1, Value: -12.75
Row: 7, Col: 1, Value: 13.43
Row: 8, Col: 1, Value: 16.07
Row: 9, Col: 1, Value: 16.78
Row: 10, Col: 1, Value: 4.94
DURING THE PERIODS SHOWN IN THE CHART FOR AUTOMOTIVE, THE HIGHEST
RETURN FOR A QUARTER WAS 24.59% (QUARTER ENDING MARCH 31, 1992) AND
THE LOWEST RETURN FOR A QUARTER WAS -22.31% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR AUTOMOTIVE WAS
- -7.29%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BIOTECHNOLOGY
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
43.93% 44.35% 99.05% -10.34% 0.70% -18.18% 49.10% 5.61% 15.27% 29.72%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 43.93
Row: 2, Col: 1, Value: 44.34999999999999
Row: 3, Col: 1, Value: 99.05
Row: 4, Col: 1, Value: -10.34
Row: 5, Col: 1, Value: 0.7000000000000001
Row: 6, Col: 1, Value: -18.18
Row: 7, Col: 1, Value: 49.1
Row: 8, Col: 1, Value: 5.609999999999999
Row: 9, Col: 1, Value: 15.27
Row: 10, Col: 1, Value: 29.72
DURING THE PERIODS SHOWN IN THE CHART FOR BIOTECHNOLOGY, THE HIGHEST
RETURN FOR A QUARTER WAS 40.42% (QUARTER ENDING MARCH 31, 1991) AND
THE LOWEST RETURN FOR A QUARTER WAS -19.25% (QUARTER ENDING MARCH 31,
1993).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR BIOTECHNOLOGY WAS
9.08%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BROKERAGE AND INVESTMENT
MANAGEMENT
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
14.06% -16.18% 82.26% 5.12% 49.33% -17.27% 23.59% 39.66% 62.32% 5.67%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 14.06
Row: 2, Col: 1, Value: -16.18
Row: 3, Col: 1, Value: 82.26000000000001
Row: 4, Col: 1, Value: 5.119999999999999
Row: 5, Col: 1, Value: 49.33
Row: 6, Col: 1, Value: -17.27
Row: 7, Col: 1, Value: 23.59
Row: 8, Col: 1, Value: 39.66
Row: 9, Col: 1, Value: 62.32
Row: 10, Col: 1, Value: 5.67
DURING THE PERIODS SHOWN IN THE CHART FOR BROKERAGE AND INVESTMENT
MANAGEMENT, THE HIGHEST RETURN FOR A QUARTER WAS 31.28% (QUARTER
ENDING MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -33.12%
(QUARTER ENDING SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR BROKERAGE AND
INVESTMENT MANAGEMENT WAS 15.47%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CHEMICALS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
17.31% -4.13% 38.66% 8.90% 12.76% 14.78% 21.45% 21.52% 16.48% -15.90%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 17.31
Row: 2, Col: 1, Value: -4.13
Row: 3, Col: 1, Value: 38.66
Row: 4, Col: 1, Value: 8.9
Row: 5, Col: 1, Value: 12.76
Row: 6, Col: 1, Value: 14.78
Row: 7, Col: 1, Value: 21.45
Row: 8, Col: 1, Value: 21.52
Row: 9, Col: 1, Value: 16.48
Row: 10, Col: 1, Value: -15.9
DURING THE PERIODS SHOWN IN THE CHART FOR CHEMICALS, THE HIGHEST
RETURN FOR A QUARTER WAS 17.65% (QUARTER ENDING MARCH 31, 1991) AND
THE LOWEST RETURN FOR A QUARTER WAS -19.95% (QUARTER ENDING SEPTEMBER
30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CHEMICALS WAS -1.38%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMPUTERS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
6.84% 18.41% 30.75% 21.96% 28.87% 20.45% 51.83% 31.62% 0.10% 96.37%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 6.84
Row: 2, Col: 1, Value: 18.41
Row: 3, Col: 1, Value: 30.75
Row: 4, Col: 1, Value: 21.96
Row: 5, Col: 1, Value: 28.87
Row: 6, Col: 1, Value: 20.45
Row: 7, Col: 1, Value: 51.83
Row: 8, Col: 1, Value: 31.62
Row: 9, Col: 1, Value: 0.1
Row: 10, Col: 1, Value: 96.36999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR COMPUTERS, THE HIGHEST
RETURN FOR A QUARTER WAS 39.44% (QUARTER ENDING DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -27.00% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR COMPUTERS WAS 13.50%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CONSTRUCTION AND HOUSING
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
16.60% -9.64% 41.31% 18.71% 33.61% -15.94% 28.78% 13.21% 29.83% 22.84%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 16.6
Row: 2, Col: 1, Value: -9.639999999999999
Row: 3, Col: 1, Value: 41.31
Row: 4, Col: 1, Value: 18.71
Row: 5, Col: 1, Value: 33.61
Row: 6, Col: 1, Value: -15.94
Row: 7, Col: 1, Value: 28.78
Row: 8, Col: 1, Value: 13.21
Row: 9, Col: 1, Value: 29.83
Row: 10, Col: 1, Value: 22.84
DURING THE PERIODS SHOWN IN THE CHART FOR CONSTRUCTION AND HOUSING,
THE HIGHEST RETURN FOR A QUARTER WAS 29.68% (QUARTER ENDING DECEMBER
31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -25.81% (QUARTER
ENDING SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CONSTRUCTION AND
HOUSING WAS -11.39%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CONSUMER INDUSTRIES
Calendar Years 1991 1992 1993 1994 1995 1996 1997 1998
38.53% 8.56% 24.67% -7.07% 28.30% 13.15% 38.06% 27.49%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: 38.53
Row: 4, Col: 1, Value: 8.560000000000001
Row: 5, Col: 1, Value: 24.67
Row: 6, Col: 1, Value: -7.07
Row: 7, Col: 1, Value: 28.3
Row: 8, Col: 1, Value: 13.15
Row: 9, Col: 1, Value: 38.06
Row: 10, Col: 1, Value: 27.49
DURING THE PERIODS SHOWN IN THE CHART FOR CONSUMER INDUSTRIES, THE
HIGHEST RETURN FOR A QUARTER WAS 27.07% (QUARTER ENDING DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -15.37% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CONSUMER INDUSTRIES
WAS 2.51%.
CYCLICAL INDUSTRIES
Calendar Year 1998
8.77%
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 0.0
Row: 3, Col: 1, Value: 0.0
Row: 4, Col: 1, Value: 0.0
Row: 5, Col: 1, Value: 0.0
Row: 6, Col: 1, Value: 0.0
Row: 7, Col: 1, Value: 0.0
Row: 8, Col: 1, Value: 0.0
Row: 9, Col: 1, Value: 0.0
Row: 10, Col: 1, Value: 8.77
DURING THE PERIOD SHOWN IN THE CHART FOR CYCLICAL INDUSTRIES, THE
HIGHEST RETURN FOR A QUARTER WAS 17.39% (QUARTER ENDING DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -19.87% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR CYCLICAL INDUSTRIES
WAS -3.20%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DEFENSE AND AEROSPACE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
8.81% -4.58% 26.93% 0.00% 28.86% 1.76% 47.36% 25.03% 23.57% 4.34%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 8.810000000000001
Row: 2, Col: 1, Value: -4.58
Row: 3, Col: 1, Value: 26.93
Row: 4, Col: 1, Value: 0.0
Row: 5, Col: 1, Value: 28.86
Row: 6, Col: 1, Value: 1.76
Row: 7, Col: 1, Value: 47.36
Row: 8, Col: 1, Value: 25.03
Row: 9, Col: 1, Value: 23.57
Row: 10, Col: 1, Value: 4.34
DURING THE PERIODS SHOWN IN THE CHART FOR DEFENSE AND AEROSPACE, THE
HIGHEST RETURN FOR A QUARTER WAS 23.08% (QUARTER ENDING SEPTEMBER 30,
1997) AND THE LOWEST RETURN FOR A QUARTER WAS -18.25% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR DEFENSE AND AEROSPACE
WAS -0.18%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DEVELOPING COMMUNICATIONS
Calendar Years 1991 1992 1993 1994 1995 1996 1997 1998
61.39% 17.21% 31.77% 15.14% 17.37% 14.55% 6.04% 67.68%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: 61.39
Row: 4, Col: 1, Value: 17.21
Row: 5, Col: 1, Value: 31.77
Row: 6, Col: 1, Value: 15.14
Row: 7, Col: 1, Value: 17.37
Row: 8, Col: 1, Value: 14.55
Row: 9, Col: 1, Value: 6.04
Row: 10, Col: 1, Value: 67.67999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR DEVELOPING COMMUNICATIONS,
THE HIGHEST RETURN FOR A QUARTER WAS 48.91% (QUARTER ENDING DECEMBER
31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -15.48% (QUARTER
ENDING MARCH 31, 1997).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR DEVELOPING
COMMUNICATIONS WAS 25.57%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ELECTRONICS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
15.67% 5.81% 35.29% 27.44% 32.08% 17.17% 68.97% 41.72% 13.72% 51.12%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 15.67
Row: 2, Col: 1, Value: 5.81
Row: 3, Col: 1, Value: 35.29000000000001
Row: 4, Col: 1, Value: 27.44
Row: 5, Col: 1, Value: 32.08
Row: 6, Col: 1, Value: 17.17
Row: 7, Col: 1, Value: 68.97
Row: 8, Col: 1, Value: 41.72000000000001
Row: 9, Col: 1, Value: 13.72
Row: 10, Col: 1, Value: 51.12000000000001
DURING THE PERIODS SHOWN IN THE CHART FOR ELECTRONICS, THE HIGHEST
RETURN FOR A QUARTER WAS 56.77% (QUARTER ENDING DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -31.76% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ELECTRONICS WAS
5.80%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ENERGY
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
42.83% -4.49% 0.04% -2.39% 19.15% 0.41% 21.38% 32.47% 10.28% -14.74%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 42.83
Row: 2, Col: 1, Value: -4.49
Row: 3, Col: 1, Value: 0.04000000000000001
Row: 4, Col: 1, Value: -2.93
Row: 5, Col: 1, Value: 19.15
Row: 6, Col: 1, Value: 0.41
Row: 7, Col: 1, Value: 21.38
Row: 8, Col: 1, Value: 32.47
Row: 9, Col: 1, Value: 10.28
Row: 10, Col: 1, Value: -14.74
DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY, THE HIGHEST RETURN
FOR A QUARTER WAS 16.27% (QUARTER ENDING MARCH 31, 1993) AND THE
LOWEST RETURN FOR A QUARTER WAS -11.75% (QUARTER ENDING SEPTEMBER 30,
1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ENERGY WAS 11.07%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ENERGY SERVICE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
59.44% 1.75% -23.48% 3.43% 20.96% 0.57% 40.87% 49.08% 51.87% -49.72%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 59.44
Row: 2, Col: 1, Value: 1.75
Row: 3, Col: 1, Value: -23.48
Row: 4, Col: 1, Value: 3.43
Row: 5, Col: 1, Value: 20.96
Row: 6, Col: 1, Value: 0.5700000000000001
Row: 7, Col: 1, Value: 40.87
Row: 8, Col: 1, Value: 49.08
Row: 9, Col: 1, Value: 51.87
Row: 10, Col: 1, Value: -49.72000000000001
DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY SERVICE, THE HIGHEST
RETURN FOR A QUARTER WAS 36.86% (QUARTER ENDING SEPTEMBER 30, 1997)
AND THE LOWEST RETURN FOR A QUARTER WAS -34.78% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ENERGY SERVICE WAS
27.02%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ENVIRONMENTAL SERVICES
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998
-2.48% 7.66% -1.37% -0.62% -9.55% 26.13% 15.61% 17.87% -16.96%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: -2.48
Row: 3, Col: 1, Value: 7.659999999999999
Row: 4, Col: 1, Value: -1.37
Row: 5, Col: 1, Value: -0.6200000000000001
Row: 6, Col: 1, Value: -9.550000000000001
Row: 7, Col: 1, Value: 26.13
Row: 8, Col: 1, Value: 15.61
Row: 9, Col: 1, Value: 17.87
Row: 10, Col: 1, Value: -16.96
DURING THE PERIODS SHOWN IN THE CHART FOR ENVIRONMENTAL SERVICES, THE
HIGHEST RETURN FOR A QUARTER WAS 13.75% (QUARTER ENDING MARCH 31,
1991) AND THE LOWEST RETURN FOR A QUARTER WAS -19.57% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR ENVIRONMENTAL
SERVICES WAS -8.78%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL SERVICES
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
19.34% -24.33% 61.63% 42.82% 17.55% -3.65% 47.34% 32.12% 41.98% 14.13%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 19.34
Row: 2, Col: 1, Value: -24.33
Row: 3, Col: 1, Value: 61.63
Row: 4, Col: 1, Value: 42.82
Row: 5, Col: 1, Value: 17.55
Row: 6, Col: 1, Value: -3.65
Row: 7, Col: 1, Value: 47.34
Row: 8, Col: 1, Value: 32.12000000000001
Row: 9, Col: 1, Value: 41.98
Row: 10, Col: 1, Value: 14.13
DURING THE PERIODS SHOWN IN THE CHART FOR FINANCIAL SERVICES, THE
HIGHEST RETURN FOR A QUARTER WAS 27.43% (QUARTER ENDING MARCH 31,
1991) AND THE LOWEST RETURN FOR A QUARTER WAS -29.89% (QUARTER ENDING
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR FINANCIAL SERVICES
WAS 5.74%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOOD AND AGRICULTURE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
38.87% 9.33% 34.09% 6.03% 8.82% 6.09% 36.64% 13.35% 30.34% 15.69%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 38.87
Row: 2, Col: 1, Value: 9.33
Row: 3, Col: 1, Value: 34.09
Row: 4, Col: 1, Value: 6.03
Row: 5, Col: 1, Value: 8.82
Row: 6, Col: 1, Value: 6.09
Row: 7, Col: 1, Value: 36.64
Row: 8, Col: 1, Value: 13.35
Row: 9, Col: 1, Value: 30.34
Row: 10, Col: 1, Value: 15.69
DURING THE PERIODS SHOWN IN THE CHART FOR FOOD AND AGRICULTURE, THE
HIGHEST RETURN FOR A QUARTER WAS 16.88% (QUARTER ENDING DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -10.29% (QUARTER ENDING
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR FOOD AND AGRICULTURE
WAS -8.12%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GOLD
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
22.04% -17.20% -6.14% -3.09% 78.68% -15.46% 11.20% 19.92% -39.39% -8.64%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 22.04
Row: 2, Col: 1, Value: -17.2
Row: 3, Col: 1, Value: -6.14
Row: 4, Col: 1, Value: -3.09
Row: 5, Col: 1, Value: 78.67999999999999
Row: 6, Col: 1, Value: -15.46
Row: 7, Col: 1, Value: 11.2
Row: 8, Col: 1, Value: 19.92
Row: 9, Col: 1, Value: -39.39
Row: 10, Col: 1, Value: -8.639999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR GOLD, THE HIGHEST RETURN FOR
A QUARTER WAS 32.47% (QUARTER ENDING JUNE 30, 1993) AND THE LOWEST
RETURN FOR A QUARTER WAS -32.11% (QUARTER ENDING DECEMBER 31, 1997).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR GOLD WAS -6.09%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HEALTH CARE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
42.49% 24.32% 83.69% -17.43% 2.42% 21.46% 45.86% 15.46% 31.15% 41.28%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 42.49
Row: 2, Col: 1, Value: 24.32
Row: 3, Col: 1, Value: 83.69
Row: 4, Col: 1, Value: -17.43
Row: 5, Col: 1, Value: 2.42
Row: 6, Col: 1, Value: 21.46
Row: 7, Col: 1, Value: 45.86
Row: 8, Col: 1, Value: 15.46
Row: 9, Col: 1, Value: 31.15
Row: 10, Col: 1, Value: 41.28
DURING THE PERIODS SHOWN IN THE CHART FOR HEALTH CARE, THE HIGHEST
RETURN FOR A QUARTER WAS 34.45% (QUARTER ENDING MARCH 31, 1991) AND
THE LOWEST RETURN FOR A QUARTER WAS -13.15% (QUARTER ENDING MARCH 31,
1992).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR HEALTH CARE WAS
1.99%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HOME FINANCE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
9.33% -15.08% 64.61% 57.85% 27.29% 2.68% 53.49% 36.88% 45.75% -14.81%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 9.33
Row: 2, Col: 1, Value: -15.08
Row: 3, Col: 1, Value: 64.61
Row: 4, Col: 1, Value: 57.84999999999999
Row: 5, Col: 1, Value: 27.29
Row: 6, Col: 1, Value: 2.68
Row: 7, Col: 1, Value: 53.49
Row: 8, Col: 1, Value: 36.88
Row: 9, Col: 1, Value: 45.75
Row: 10, Col: 1, Value: -14.81
DURING THE PERIODS SHOWN IN THE CHART FOR HOME FINANCE, THE HIGHEST
RETURN FOR A QUARTER WAS 30.19% (QUARTER ENDING MARCH 31, 1991) AND
THE LOWEST RETURN FOR A QUARTER WAS -25.76% (QUARTER ENDING SEPTEMBER
30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR HOME FINANCE WAS
- -0.62%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INDUSTRIAL EQUIPMENT
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
17.95% -15.51% 26.84% 11.34% 43.33% 3.13% 27.81% 26.71% 18.55% 12.67%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 17.95
Row: 2, Col: 1, Value: -15.51
Row: 3, Col: 1, Value: 26.84
Row: 4, Col: 1, Value: 11.34
Row: 5, Col: 1, Value: 43.33
Row: 6, Col: 1, Value: 3.13
Row: 7, Col: 1, Value: 27.81
Row: 8, Col: 1, Value: 26.71
Row: 9, Col: 1, Value: 18.55
Row: 10, Col: 1, Value: 12.67
DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL EQUIPMENT, THE
HIGHEST RETURN FOR A QUARTER WAS 20.08% (QUARTER ENDING MARCH 31,
1991) AND THE LOWEST RETURN FOR A QUARTER WAS -29.18% (QUARTER ENDING
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR INDUSTRIAL EQUIPMENT
WAS -1.47%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INDUSTRIAL MATERIALS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
4.45% -17.17% 35.81% 12.37% 21.38% 8.19% 15.39% 14.01% 1.75% -11.02%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 4.45
Row: 2, Col: 1, Value: -17.17
Row: 3, Col: 1, Value: 35.81
Row: 4, Col: 1, Value: 12.37
Row: 5, Col: 1, Value: 21.38
Row: 6, Col: 1, Value: 8.19
Row: 7, Col: 1, Value: 15.39
Row: 8, Col: 1, Value: 14.01
Row: 9, Col: 1, Value: 1.75
Row: 10, Col: 1, Value: -11.02
DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL MATERIALS, THE
HIGHEST RETURN FOR A QUARTER WAS 12.69% (QUARTER ENDING MARCH 31,
1991) AND THE LOWEST RETURN FOR A QUARTER WAS -21.26% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR INDUSTRIAL MATERIALS
WAS 0.10%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INSURANCE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
37.83% -9.81% 36.68% 22.50% 8.18% -0.35% 34.81% 23.71% 42.47% 20.32%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 37.83
Row: 2, Col: 1, Value: -9.810000000000001
Row: 3, Col: 1, Value: 36.68
Row: 4, Col: 1, Value: 22.5
Row: 5, Col: 1, Value: 8.18
Row: 6, Col: 1, Value: -0.35
Row: 7, Col: 1, Value: 34.81
Row: 8, Col: 1, Value: 23.71
Row: 9, Col: 1, Value: 42.47
Row: 10, Col: 1, Value: 20.32
DURING THE PERIODS SHOWN IN THE CHART FOR INSURANCE, THE HIGHEST
RETURN FOR A QUARTER WAS 23.68% (QUARTER ENDING MARCH 31, 1991) AND
THE LOWEST RETURN FOR A QUARTER WAS -19.37% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR INSURANCE WAS 0.97%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LEISURE
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
31.21% -22.29% 32.94% 16.23% 39.55% -6.84% 26.96% 13.41% 41.29% 37.92%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 31.21
Row: 2, Col: 1, Value: -22.29
Row: 3, Col: 1, Value: 32.94
Row: 4, Col: 1, Value: 16.23
Row: 5, Col: 1, Value: 39.55
Row: 6, Col: 1, Value: -6.84
Row: 7, Col: 1, Value: 26.96
Row: 8, Col: 1, Value: 13.41
Row: 9, Col: 1, Value: 41.29000000000001
Row: 10, Col: 1, Value: 37.92
DURING THE PERIODS SHOWN IN THE CHART FOR LEISURE, THE HIGHEST RETURN
FOR A QUARTER WAS 32.19% (QUARTER ENDING DECEMBER 31, 1998) AND THE
LOWEST RETURN FOR A QUARTER WAS -22.70% (QUARTER ENDING SEPTEMBER 30,
1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR LEISURE WAS 16.40%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MEDICAL DELIVERY
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
58.02% 16.26% 77.83% -13.19% 5.52% 19.84% 32.18% 11.00% 20.14% -6.16%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 58.02
Row: 2, Col: 1, Value: 16.26
Row: 3, Col: 1, Value: 77.83
Row: 4, Col: 1, Value: -13.19
Row: 5, Col: 1, Value: 5.52
Row: 6, Col: 1, Value: 19.84
Row: 7, Col: 1, Value: 32.18
Row: 8, Col: 1, Value: 11.0
Row: 9, Col: 1, Value: 20.14
Row: 10, Col: 1, Value: -6.159999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR MEDICAL DELIVERY, THE
HIGHEST RETURN FOR A QUARTER WAS 41.61% (QUARTER ENDING MARCH 31,
1991) AND THE LOWEST RETURN FOR A QUARTER WAS -26.26% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR MEDICAL DELIVERY WAS
- -21.50%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MULTIMEDIA
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
32.54% -26.21% 37.85% 21.50% 38.02% 4.00% 33.67% 1.07% 30.93% 35.69%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 32.54
Row: 2, Col: 1, Value: -26.21
Row: 3, Col: 1, Value: 37.84999999999999
Row: 4, Col: 1, Value: 21.5
Row: 5, Col: 1, Value: 38.02
Row: 6, Col: 1, Value: 4.0
Row: 7, Col: 1, Value: 33.67
Row: 8, Col: 1, Value: 1.07
Row: 9, Col: 1, Value: 30.93
Row: 10, Col: 1, Value: 35.69000000000001
DURING THE PERIODS SHOWN IN THE CHART FOR MULTIMEDIA, THE HIGHEST
RETURN FOR A QUARTER WAS 27.35% (QUARTER ENDING DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -24.82% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR MULTIMEDIA WAS
11.37%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NATURAL GAS
Calendar Years 1994 1995 1996 1997 1998
-6.84% 30.38% 34.32% -8.06% -12.40%
</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: -6.84
Row: 7, Col: 1, Value: 30.38
Row: 8, Col: 1, Value: 34.32
Row: 9, Col: 1, Value: -8.060000000000001
Row: 10, Col: 1, Value: -12.4
DURING THE PERIODS SHOWN IN THE CHART FOR NATURAL GAS, THE HIGHEST
RETURN FOR A QUARTER WAS 16.45% (QUARTER ENDING SEPTEMBER 30, 1997)
AND THE LOWEST RETURN FOR A QUARTER WAS -16.04% (QUARTER ENDING MARCH
31, 1997).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR NATURAL GAS WAS
7.20%.
NATURAL RESOURCES
Calendar Year 1998
-16.57%
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: nil
Row: 10, Col: 1, Value: -16.57
DURING THE PERIOD SHOWN IN THE CHART FOR NATURAL RESOURCES, THE
HIGHEST RETURN FOR A QUARTER WAS 4.82% (QUARTER ENDING MARCH 31, 1998)
AND THE LOWEST RETURN FOR A QUARTER WAS -11.34% (QUARTER ENDING
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR NATURAL RESOURCES WAS
10.51%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PAPER AND FOREST PRODUCTS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
4.08% -15.11% 34.77% 12.05% 18.55% 14.14% 21.91% 7.07% 9.35% -7.89%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 4.08
Row: 2, Col: 1, Value: -15.11
Row: 3, Col: 1, Value: 34.77
Row: 4, Col: 1, Value: 12.05
Row: 5, Col: 1, Value: 18.55
Row: 6, Col: 1, Value: 14.14
Row: 7, Col: 1, Value: 21.91
Row: 8, Col: 1, Value: 7.07
Row: 9, Col: 1, Value: 9.350000000000001
Row: 10, Col: 1, Value: -7.89
DURING THE PERIODS SHOWN IN THE CHART FOR PAPER AND FOREST PRODUCTS,
THE HIGHEST RETURN FOR A QUARTER WAS 22.74% (QUARTER ENDING SEPTEMBER
30, 1994) AND THE LOWEST RETURN FOR A QUARTER WAS -21.04% (QUARTER
ENDING SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR PAPER AND FOREST
PRODUCTS WAS 1.41%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PRECIOUS METALS AND MINERALS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
32.16% -21.07% 1.54% -21.87% 111.62% -1.14% -3.34% 5.42% -44.89% 0.10%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 32.16
Row: 2, Col: 1, Value: -21.07
Row: 3, Col: 1, Value: 1.54
Row: 4, Col: 1, Value: -21.87
Row: 5, Col: 1, Value: 111.62
Row: 6, Col: 1, Value: -1.14
Row: 7, Col: 1, Value: -3.34
Row: 8, Col: 1, Value: 5.42
Row: 9, Col: 1, Value: -44.89
Row: 10, Col: 1, Value: 0.1
DURING THE PERIODS SHOWN IN THE CHART FOR PRECIOUS METALS AND
MINERALS, THE HIGHEST RETURN FOR A QUARTER WAS 33.66% (QUARTER ENDING
JUNE 30, 1993) AND THE LOWEST RETURN FOR A QUARTER WAS -31.22%
(QUARTER ENDING DECEMBER 31, 1997).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR PRECIOUS METALS AND
MINERALS WAS -7.09%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
REGIONAL BANKS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
26.65% -20.67% 65.79% 48.52% 11.17% 0.22% 46.77% 35.89% 45.56% 11.85%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 26.65
Row: 2, Col: 1, Value: -20.67
Row: 3, Col: 1, Value: 65.79000000000001
Row: 4, Col: 1, Value: 48.52
Row: 5, Col: 1, Value: 11.17
Row: 6, Col: 1, Value: 0.22
Row: 7, Col: 1, Value: 46.77
Row: 8, Col: 1, Value: 35.89
Row: 9, Col: 1, Value: 45.56
Row: 10, Col: 1, Value: 11.85
DURING THE PERIODS SHOWN IN THE CHART FOR REGIONAL BANKS, THE HIGHEST
RETURN FOR A QUARTER WAS 22.20% (QUARTER ENDING MARCH 31, 1991) AND
THE LOWEST RETURN FOR A QUARTER WAS -25.20% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR REGIONAL BANKS WAS
- -3.13%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RETAILING
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
29.53% -5.03% 68.13% 22.08% 13.03% -5.01% 11.98% 20.86% 41.73% 45.76%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 29.53
Row: 2, Col: 1, Value: -5.03
Row: 3, Col: 1, Value: 68.13
Row: 4, Col: 1, Value: 22.08
Row: 5, Col: 1, Value: 13.03
Row: 6, Col: 1, Value: -5.01
Row: 7, Col: 1, Value: 11.98
Row: 8, Col: 1, Value: 20.86
Row: 9, Col: 1, Value: 41.73
Row: 10, Col: 1, Value: 45.76000000000001
DURING THE PERIODS SHOWN IN THE CHART FOR RETAILING, THE HIGHEST
RETURN FOR A QUARTER WAS 34.78% (QUARTER ENDING DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -27.05% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR RETAILING WAS 5.88%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SOFTWARE AND COMPUTER SERVICES
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
12.05% 0.86% 45.84% 35.54% 32.73% 0.39% 46.26% 21.77% 15.01% 45.77%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 12.05
Row: 2, Col: 1, Value: 0.8600000000000001
Row: 3, Col: 1, Value: 45.84
Row: 4, Col: 1, Value: 35.54
Row: 5, Col: 1, Value: 32.73
Row: 6, Col: 1, Value: 0.3900000000000001
Row: 7, Col: 1, Value: 46.26000000000001
Row: 8, Col: 1, Value: 21.77
Row: 9, Col: 1, Value: 15.01
Row: 10, Col: 1, Value: 45.77
DURING THE PERIODS SHOWN IN THE CHART FOR SOFTWARE AND COMPUTER
SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 30.03% (QUARTER ENDING
MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -30.81%
(QUARTER ENDING SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR SOFTWARE AND COMPUTER
SERVICES WAS 9.12%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
16.99% 10.50% 58.97% 8.72% 28.65% 11.13% 43.81% 15.82% 10.33% 74.16%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 16.99
Row: 2, Col: 1, Value: 10.5
Row: 3, Col: 1, Value: 58.97
Row: 4, Col: 1, Value: 8.719999999999999
Row: 5, Col: 1, Value: 28.65
Row: 6, Col: 1, Value: 11.13
Row: 7, Col: 1, Value: 43.81
Row: 8, Col: 1, Value: 15.82
Row: 9, Col: 1, Value: 10.33
Row: 10, Col: 1, Value: 74.16
DURING THE PERIODS SHOWN IN THE CHART FOR TECHNOLOGY, THE HIGHEST
RETURN FOR A QUARTER WAS 45.96% (QUARTER ENDING DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -25.19% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR TECHNOLOGY WAS
18.63%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TELECOMMUNICATIONS
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
50.88% -16.40% 30.85% 15.32% 29.72% 4.32% 29.66% 5.40% 25.83% 41.04%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 50.88
Row: 2, Col: 1, Value: -16.4
Row: 3, Col: 1, Value: 30.85
Row: 4, Col: 1, Value: 15.32
Row: 5, Col: 1, Value: 29.72
Row: 6, Col: 1, Value: 4.319999999999999
Row: 7, Col: 1, Value: 29.66
Row: 8, Col: 1, Value: 5.4
Row: 9, Col: 1, Value: 25.83
Row: 10, Col: 1, Value: 41.04
DURING THE PERIODS SHOWN IN THE CHART FOR TELECOMMUNICATIONS, THE
HIGHEST RETURN FOR A QUARTER WAS 30.69% (QUARTER ENDING DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -21.14% (QUARTER ENDING
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR TELECOMMUNICATIONS
WAS 10.09%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TRANSPORTATION
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
28.49% -21.59% 54.14% 23.79% 29.32% 3.87% 15.17% 9.50% 32.13% -4.34%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 28.49
Row: 2, Col: 1, Value: -21.59
Row: 3, Col: 1, Value: 54.14
Row: 4, Col: 1, Value: 23.79
Row: 5, Col: 1, Value: 29.32
Row: 6, Col: 1, Value: 3.87
Row: 7, Col: 1, Value: 15.17
Row: 8, Col: 1, Value: 9.5
Row: 9, Col: 1, Value: 32.13
Row: 10, Col: 1, Value: -4.34
DURING THE PERIODS SHOWN IN THE CHART FOR TRANSPORTATION, THE HIGHEST
RETURN FOR A QUARTER WAS 19.76% (QUARTER ENDING DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -25.91% (QUARTER ENDING SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR TRANSPORTATION WAS
15.57%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
39.02% 0.55% 21.03% 10.59% 12.54% -7.41% 34.39% 11.37% 30.31% 43.16%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 39.02
Row: 2, Col: 1, Value: 0.55
Row: 3, Col: 1, Value: 21.03
Row: 4, Col: 1, Value: 10.59
Row: 5, Col: 1, Value: 12.54
Row: 6, Col: 1, Value: -7.41
Row: 7, Col: 1, Value: 34.39
Row: 8, Col: 1, Value: 11.37
Row: 9, Col: 1, Value: 30.31
Row: 10, Col: 1, Value: 43.16
DURING THE PERIODS SHOWN IN THE CHART FOR UTILITIES GROWTH, THE
HIGHEST RETURN FOR A QUARTER WAS 23.01% (QUARTER ENDING DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -6.17% (QUARTER ENDING
DECEMBER 31, 1993).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR UTILITIES GROWTH WAS
3.84%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET
Calendar Years 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998
8.98% 7.79% 5.80% 3.52% 2.69% 3.74% 5.66% 5.06% 5.20% 5.20%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 8.98
Row: 2, Col: 1, Value: 7.79
Row: 3, Col: 1, Value: 5.8
Row: 4, Col: 1, Value: 3.52
Row: 5, Col: 1, Value: 2.69
Row: 6, Col: 1, Value: 3.74
Row: 7, Col: 1, Value: 5.659999999999999
Row: 8, Col: 1, Value: 5.06
Row: 9, Col: 1, Value: 5.2
Row: 10, Col: 1, Value: 5.2
DURING THE PERIODS SHOWN IN THE CHART FOR MONEY MARKET, THE HIGHEST
RETURN FOR A QUARTER WAS 1.91% (QUARTER ENDING JUNE 30, 1990) AND THE
LOWEST RETURN FOR A QUARTER WAS 0.63% (QUARTER ENDING DECEMBER 31,
1993).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 1999 FOR MONEY MARKET WAS
1.14%.
AVERAGE ANNUAL RETURNS
The returns in the following table include the effect of each fund's
3.00% maximum applicable front-end sales charge and $7.50 exchange fee
(stock funds only).
<TABLE>
<CAPTION>
For the periods ended Past 1 year Past 5 years Past 10 years/ Life of fundA
December 31, 1998
<S> <C> <C> <C>
Air Transportation 3.15% 11.33% 12.95%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Automotive 1.72% 6.42% 13.31%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Biotechnology 25.75% 13.31% 21.44%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Health Care Index 40.26% N/A N/A
Brokerage and Investment 2.43% 18.89% 20.58%
Management
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Financial 9.04% N/A N/A
Services Index
Chemicals -18.49% 9.98% 11.91%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Computers 90.41% 35.63% 28.13%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Technology Index 69.16% N/A N/A
Construction and Housing 19.08% 13.64% 16.17%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Consumer Industries 23.59% 18.15% 20.06%B
S&P 500 28.58% 24.06% 20.83%
Goldman Sachs Consumer 24.91% N/A N/A
Industries Index
Cyclical Industries 5.43% N/A 5.43%B
S&P 500 28.58% N/A 28.58%
Goldman Sachs Cyclical 4.74% N/A 4.74%
Industries Index
Defense and Aerospace 1.13% 18.57% 14.81%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Developing Communications 62.57% 21.69% 26.73%B
S&P 500 28.58% 24.06% 20.83%
Goldman Sachs Technology Index 69.16% N/A N/A
Electronics 46.51% 36.14% 29.27%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Technology Index 69.16% N/A N/A
For the periods ended Past 1 year Past 5 years Past 10 years/ Life of fundA
December 31, 1998
Energy -17.37% 8.04% 8.86%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Natural -14.19% N/A N/A
Resources Index
Energy Service -51.30% 9.35% 9.28%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Natural -14.19% N/A N/A
Resources Index
Environmental Services -19.53% 4.59% 2.85%B
S&P 500 28.58% 24.06% 17.90%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Financial Services 10.64% 24.13% 21.86%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Financial 9.04% N/A N/A
Services Index
Food and Agriculture 12.14% 19.16% 18.89%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Consumer 24.91% N/A N/A
Industries Index
Gold -11.45% -9.57% -0.06%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Natural -14.19% N/A N/A
Resources Index
Health Care 36.97% 29.74% 26.04%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Health Care Index 40.26% N/A N/A
Home Finance -17.43% 21.04% 23.08%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Financial 9.04% N/A N/A
Services Index
Industrial Equipment 9.22% 16.69% 15.87%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Industrial Materials -13.76% 4.55% 7.19%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Insurance 16.64% 22.54% 20.06%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Financial 9.04% N/A N/A
Services Index
Leisure 33.71% 20.44% 18.75%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Consumer 24.91% N/A N/A
Industries Index
Medical Delivery -9.05% 13.96% 19.12%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Health Care Index 40.26% N/A N/A
For the periods ended Past 1 year Past 5 years Past 10 years/ Life of fundA
December 31, 1998
Multimedia 31.55% 19.34% 18.53%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Consumer 24.91% N/A N/A
Industries Index
Natural Gas -15.10% 4.96% 4.96%B
S&P 500 28.58% 24.06% 24.06%
Goldman Sachs Utilities Index 34.29% N/A N/A
Natural Resources -19.15% N/A -19.15%B
S&P 500 28.58% N/A 28.58%
Goldman Sachs Natural -14.19% N/A -14.19%
Resources Index
Paper and Forest Products -10.73% 7.79% 8.69%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Precious Metals and Minerals -2.97% -11.65% -0.58%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Natural -14.19% N/A N/A
Resources Index
Regional Banks 8.42% 25.84% 24.12%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Financial 9.04% N/A N/A
Services Index
Retailing 41.32% 20.83% 22.08%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Consumer 24.91% N/A N/A
Industries Index
Software and Computer Services 41.32% 23.79% 24.04%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Technology Index 69.16% N/A N/A
Technology 68.86% 28.10% 25.79%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Technology Index 69.16% N/A N/A
Telecommunications 36.74% 19.66% 19.74%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Utilities Index 34.29% N/A N/A
Transportation -7.28% 9.93% 14.85%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Cyclical 4.74% N/A N/A
Industries Index
Utilities Growth 38.79% 20.18% 18.10%
S&P 500 28.58% 24.06% 19.21%
Goldman Sachs Utilities Index 34.29% N/A N/A
Money Market 2.04% 4.33% 5.03%
</TABLE>
A BEGINNING JANUARY 1 OF THE FIRST CALENDAR YEAR FOLLOWING THE FUND'S
COMMENCEMENT OF OPERATIONS.
B FROM JANUARY 1, 1990 FOR ENVIRONMENTAL SERVICES; JANUARY 1, 1991 FOR
CONSUMER INDUSTRIES AND DEVELOPING COMMUNICATIONS; JANUARY 1, 1994 FOR
NATURAL GAS; AND JANUARY 1, 1998 FOR CYCLICAL INDUSTRIES AND NATURAL
RESOURCES.
If FMR had not reimbursed certain fund expenses during these periods,
each fund's returns would have been lower.
Standard & Poor's 500 Index (S&P 500(registered trademark)) is a
market capitalization-weighted index of common stocks.
Goldman Sachs Consumer Industries Index is a market
capitalization-weighted index of 300 stocks designed to measure the
performance of companies in the consumer industries sector.
Goldman Sachs Cyclical Industries Index is a market
capitalization-weighted index of 277 stocks designed to measure the
performance of companies in the cyclical industries sector.
Goldman Sachs Financial Services Index is a market
capitalization-weighted index of 271 stocks designed to measure the
performance of companies in the financial services sector.
Goldman Sachs Health Care Index is a market capitalization-weighted
index of 93 stocks designed to measure the performance of companies in
the health care sector.
Goldman Sachs Natural Resources Index is a market
capitalization-weighted index of 96 stocks designed to measure the
performance of companies in the natural resources sector.
Goldman Sachs Technology Index is a market capitalization-weighted
index of 190 stocks designed to measure the performance of companies
in the technology sector.
Goldman Sachs Utilities Index is a market capitalization-weighted
index of 136 stocks designed to measure the performance of companies
in the utilities sector.
FEE TABLE
The following table describes the fees and expenses that are incurred
when you buy, hold or sell shares of a fund. The annual fund operating
expenses provided below for each fund do not reflect the effect of any
reduction of certain expenses during the period. The annual fund
operating expenses provided below for Cyclical Industries and Natural
Resources do not reflect the effect of any expense reimbursements
during the period.
SHAREHOLDER FEES (PAID BY THE INVESTOR DIRECTLY)
Maximum sales charge (load) 3.00%
on purchases (as a % of
offering price)A
Sales charge (load) on None
reinvested distributions
Deferred sales charge (load) None
on redemptions
Redemption fee for the stock
funds (as a % of amount
redeemed)
on shares held 29 days or less 0.75%
on shares held 30 days or
more
for redemption amounts
of up to $1,000 0.75%
for
redemption amounts of $1,000
or more $ 7.50
Exchange fee
for the stock funds onlyB $ 7.50
Annual account maintenance $ 12.00
fee (for accounts under
$2,500)
A LOWER SALES CHARGES MAY BE AVAILABLE FOR ACCOUNTS OVER $250,000.
B YOU WILL NOT PAY AN EXCHANGE FEE IF YOU EXCHANGE THROUGH ANY OF
FIDELITY'S AUTOMATED EXCHANGE SERVICES.
ANNUAL FUND OPERATING EXPENSES (PAID FROM FUND ASSETS)
AIR TRANSPORTATION Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.77%
Total annual fund operating 1.35%
expensesA
AUTOMOTIVE Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.86%
Total annual fund operating 1.45%
expensesA
BIOTECHNOLOGY Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.75%
Total annual fund operating 1.34%
expensesA
BROKERAGE AND INVESTMENT Management fee 0.59%
MANAGEMENT
Distribution and Service None
(12b-1) fee
Other expenses 0.67%
Total annual fund operating 1.26%
expensesA
BUSINESS SERVICES AND Management fee 0.59%
OUTSOURCING
Distribution and Service None
(12b-1) fee
Other expenses 1.07%
Total annual fund operating 1.66%
expensesA
CHEMICALS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.99%
Total annual fund operating 1.58%
expensesA
COMPUTERS Management fee 0.60%
Distribution and Service None
(12b-1) fee
Other expenses 0.65%
Total annual fund operating 1.25%
expensesA
CONSTRUCTION AND HOUSING Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.84%
Total annual fund operating 1.43%
expensesA
CONSUMER INDUSTRIES Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.75%
Total annual fund operating 1.34%
expensesA
CYCLICAL INDUSTRIES Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 3.38%
Total annual fund operating 3.97%
expensesA
DEFENSE AND AEROSPACE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.90%
Total annual fund operating 1.48%
expensesA
DEVELOPING COMMUNICATIONS Management fee 0.60%
Distribution and Service None
(12b-1) fee
Other expenses 0.78%
Total annual fund operating 1.38%
expensesA
ELECTRONICS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.59%
Total annual fund operating 1.18%
expensesA
ENERGY Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.87%
Total annual fund operating 1.46%
expensesA
ENERGY SERVICE Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.80%
Total annual fund operating 1.39%
expensesA
ENVIRONMENTAL SERVICES Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 1.61%
Total annual fund operating 2.20%
expensesA
FINANCIAL SERVICES Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.61%
Total annual fund operating 1.20%
expensesA
FOOD AND AGRICULTURE Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.72%
Total annual fund operating 1.31%
expensesA
GOLD Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.98%
Total annual fund operating 1.57%
expensesA
HEALTH CARE Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.48%
Total annual fund operating 1.07%
expensesA
HOME FINANCE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.61%
Total annual fund operating 1.19%
expensesA
INDUSTRIAL EQUIPMENT Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.84%
Total annual fund operating 1.43%
expensesA
INDUSTRIAL MATERIALS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 1.48%
Total annual fund operating 2.07%
expensesA
INSURANCE Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.74%
Total annual fund operating 1.33%
expensesA
LEISURE Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.67%
Total annual fund operating 1.26%
expensesA
MEDICAL DELIVERY Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.81%
Total annual fund operating 1.40%
expensesA
MEDICAL EQUIPMENT AND SYSTEMS Management fee 0.60%
Distribution and Service None
(12b-1) fee
Other expenses 1.79%
Total annual fund operating 2.39%
expensesA
MULTIMEDIA Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.76%
Total annual fund operating 1.35%
expensesA
NATURAL GAS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.98%
Total annual fund operating 1.57%
expensesA
NATURAL RESOURCES Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 2.61%
Total annual fund operating 3.20%
expensesA
PAPER AND FOREST PRODUCTS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 1.71%
Total annual fund operating 2.30%
expensesA
PRECIOUS METALS AND MINERALS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 1.19%
Total annual fund operating 1.78%
expensesA
REGIONAL BANKS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.58%
Total annual fund operating 1.17%
expensesA
RETAILING Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.66%
Total annual fund operating 1.25%
expensesA
SOFTWARE AND COMPUTER SERVICES Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.69%
Total annual fund operating 1.28%
expensesA
TECHNOLOGY Management fee 0.60%
Distribution and Service None
(12b-1) fee
Other expenses 0.64%
Total annual fund operating 1.24%
expensesA
TELECOMMUNICATIONS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.68%
Total annual fund operating 1.27%
expensesA
TRANSPORTATION Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.38%
Total annual fund operating 1.96%
expensesA
UTILITIES GROWTH Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.59%
Total annual fund operating 1.18%
expensesA
MONEY MARKET Management fee 0.20%
Distribution and Service None
(12b-1) fee
Other expenses 0.30%
Total annual fund operating 0.50%
expensesA
A FMR HAS VOLUNTARILY AGREED TO REIMBURSE EACH FUND TO THE EXTENT THAT
TOTAL OPERATING EXPENSES (EXCLUDING INTEREST, TAXES, SECURITIES
LENDING FEES, BROKERAGE COMMISSIONS AND EXTRAORDINARY EXPENSES), AS A
PERCENTAGE OF THEIR RESPECTIVE AVERAGE NET ASSETS, EXCEED 2.50%. THESE
ARRANGEMENTS CAN BE TERMINATED BY FMR AT ANY TIME.
A portion of the brokerage commissions that a fund pays is used to
reduce that fund's expenses. In addition, each fund has entered into
arrangements with its custodian and transfer agent whereby credits
realized as a result of uninvested cash balances are used to reduce
custodian and transfer agent expenses. Including these reductions, the
total fund operating expenses, after reimbursement for Cyclical
Industries and Natural Resources, would have been:
Air Transportation 1.27%
Automotive 1.41%
Biotechnology 1.30%
Brokerage and Investment 1.24%
Management
Business Services and 1.64%
Outsourcing
Chemicals 1.51%
Computers 1.23%
Construction and Housing 1.37%
Consumer Industries 1.32%
Cyclical Industries 2.49%
Defense and Aerospace 1.42%
Developing Communications 1.34%
Electronics 1.15%
Energy 1.42%
Energy Service 1.35%
Environmental Services 2.16%
Financial Services 1.18%
Food and Agriculture 1.29%
Gold 1.54%
Health Care 1.05%
Home Finance 1.18%
Industrial Equipment 1.41%
Industrial Materials 2.04%
Insurance 1.31%
Leisure 1.24%
Medical Delivery 1.37%
Medical Equipment and Systems 2.38%
Multimedia 1.33%
Natural Gas 1.52%
Natural Resources 2.47%
Paper and Forest Products 2.21%
Precious Metals and Minerals 1.74%
Regional Banks 1.16%
Retailing 1.22%
Software and Computer Services 1.27%
Technology 1.20%
Telecommunications 1.25%
Transportation 1.90%
Utilities Growth 1.16%
Money Market 0.49%
This EXAMPLE helps you compare the cost of investing in the funds with
the cost of investing in other mutual funds.
Let's say, hypothetically, that each fund's annual return is 5% and
that your shareholder fees and each fund's annual operating expenses
are exactly as described in the fee table. This example illustrates
the effect of fees and expenses, but is not meant to suggest actual or
expected fees and expenses or returns, all of which may vary. For
every $10,000 you invested, here's how much you would pay in total
expenses if you close your account after the number of years indicated
and if you leave your account open:
Account open Account closed
AIR TRANSPORTATION 1 year $ 433 $ 441
3 years $ 715 $ 722
5 years $ 1,017 $ 1,025
10 years $ 1,875 $ 1,883
AUTOMOTIVE 1 year $ 443 $ 451
3 years $ 745 $ 752
5 years $ 1,068 $ 1,076
10 years $ 1,983 $ 1,991
BIOTECHNOLOGY 1 year $ 432 $ 440
3 years $ 712 $ 719
5 years $ 1,012 $ 1,020
10 years $ 1,864 $ 1,872
BROKERAGE AND INVESTMENT 1 year $ 425 $ 432
MANAGEMENT
3 years $ 688 $ 695
5 years $ 971 $ 978
10 years $ 1,777 $ 1,784
BUSINESS SERVICES AND 1 year $ 464 $ 471
OUTSOURCING
3 years $ 808 $ 815
5 years $ 1,175 $ 1,183
10 years $ 2,206 $ 2,214
CHEMICALS 1 year $ 456 $ 463
3 years $ 784 $ 791
5 years $ 1,135 $ 1,142
10 years $ 2,122 $ 2,129
COMPUTERS 1 year $ 424 $ 431
3 years $ 685 $ 692
5 years $ 966 $ 973
10 years $ 1,766 $ 1,773
CONSTRUCTION AND HOUSING 1 year $ 441 $ 449
3 years $ 739 $ 746
5 years $ 1,058 $ 1,066
10 years $ 1,962 $ 1,969
CONSUMER INDUSTRIES 1 year $ 432 $ 440
3 years $ 712 $ 719
5 years $ 1,012 $ 1,020
10 years $ 1,864 $ 1,872
CYCLICAL INDUSTRIES 1 year $ 687 $ 695
3 years $ 1,473 $ 1,481
5 years $ 2,276 $ 2,283
10 years $ 4,355 $ 4,363
DEFENSE AND AEROSPACE 1 year $ 446 $ 454
3 years $ 754 $ 761
5 years $ 1,084 $ 1,091
10 years $ 2,015 $ 2,023
DEVELOPING COMMUNICATIONS 1 year $ 436 $ 444
3 years $ 724 $ 731
5 years $ 1,033 $ 1,040
10 years $ 1,908 $ 1,915
ELECTRONICS 1 year $ 417 $ 424
3 years $ 663 $ 671
5 years $ 930 $ 937
10 years $ 1,689 $ 1,696
ENERGY 1 year $ 444 $ 452
3 years $ 748 $ 755
5 years $ 1,073 $ 1,081
10 years $ 1,994 $ 2,001
ENERGY SERVICE 1 year $ 437 $ 445
3 years $ 727 $ 734
5 years $ 1,038 $ 1,045
10 years $ 1,919 $ 1,926
ENVIRONMENTAL SERVICES 1 year $ 516 $ 524
3 years $ 968 $ 975
5 years $ 1,444 $ 1,452
10 years $ 2,758 $ 2,765
FINANCIAL SERVICES 1 year $ 419 $ 426
3 years $ 670 $ 677
5 years $ 940 $ 947
10 years $ 1,711 $ 1,718
FOOD AND AGRICULTURE 1 year $ 429 $ 437
3 years $ 703 $ 710
5 years $ 997 $ 1,004
10 years $ 1,832 $ 1,839
GOLD 1 year $ 455 $ 462
3 years $ 781 $ 788
5 years $ 1,129 $ 1,137
10 years $ 2,111 $ 2,119
HEALTH CARE 1 year $ 406 $ 413
3 years $ 630 $ 638
5 years $ 872 $ 880
10 years $ 1,566 $ 1,574
HOME FINANCE 1 year $ 418 $ 425
3 years $ 667 $ 674
5 years $ 935 $ 942
10 years $ 1,700 $ 1,707
INDUSTRIAL EQUIPMENT 1 year $ 441 $ 449
3 years $ 739 $ 746
5 years $ 1,058 $ 1,066
10 years $ 1,962 $ 1,969
INDUSTRIAL MATERIALS 1 year $ 504 $ 511
3 years $ 929 $ 937
5 years $ 1,380 $ 1,388
10 years $ 2,628 $ 2,636
INSURANCE 1 year $ 431 $ 439
3 years $ 709 $ 716
5 years $ 1,007 $ 1,014
10 years $ 1,853 $ 1,861
LEISURE 1 year $ 425 $ 432
3 years $ 688 $ 695
5 years $ 971 $ 978
10 years $ 1,777 $ 1,784
MEDICAL DELIVERY 1 year $ 438 $ 446
3 years $ 730 $ 737
5 years $ 1,043 $ 1,050
10 years $ 1,929 $ 1,937
MEDICAL EQUIPMENT AND SYSTEMS 1 year $ 535 $ 542
3 years $ 1,023 $ 1,031
5 years $ 1,537 $ 1,545
10 years $ 2,944 $ 2,952
MULTIMEDIA 1 year $ 433 $ 441
3 years $ 715 $ 722
5 years $ 1,017 $ 1,025
10 years $ 1,875 $ 1,883
NATURAL GAS 1 year $ 455 $ 462
3 years $ 781 $ 788
5 years $ 1,129 $ 1,137
10 years $ 2,111 $ 2,119
NATURAL RESOURCES 1 year $ 613 $ 621
3 years $ 1,257 $ 1,264
5 years $ 1,923 $ 1,931
10 years $ 3,698 $ 3,706
PAPER AND FOREST PRODUCTS 1 year $ 526 $ 534
3 years $ 997 $ 1,004
5 years $ 1,493 $ 1,501
10 years $ 2,857 $ 2,864
PRECIOUS METALS AND MINERALS 1 year $ 475 $ 483
3 years $ 843 $ 851
5 years $ 1,236 $ 1,243
10 years $ 2,332 $ 2,339
REGIONAL BANKS 1 year $ 416 $ 423
3 years $ 660 $ 668
5 years $ 924 $ 932
10 years $ 1,678 $ 1,685
RETAILING 1 year $ 424 $ 431
3 years $ 685 $ 692
5 years $ 966 $ 973
10 years $ 1,766 $ 1,773
SOFTWARE AND COMPUTER SERVICES 1 year $ 426 $ 434
3 years $ 694 $ 701
5 years $ 981 $ 989
10 years $ 1,799 $ 1,806
TECHNOLOGY 1 year $ 423 $ 430
3 years $ 682 $ 689
5 years $ 961 $ 968
10 years $ 1,755 $ 1,762
TELECOMMUNICATIONS 1 year $ 425 $ 433
3 years $ 691 $ 699
5 years $ 976 $ 984
10 years $ 1,788 $ 1,796
TRANSPORTATION 1 year $ 493 $ 501
3 years $ 897 $ 904
5 years $ 1,326 $ 1,333
10 years $ 2,517 $ 2,524
UTILITIES GROWTH 1 year $ 417 $ 424
3 years $ 663 $ 671
5 years $ 930 $ 937
10 years $ 1,689 $ 1,696
MONEY MARKET 1 year $ 350 $ 350
3 years $ 456 $ 456
5 years $ 571 $ 571
10 years $ 909 $ 909
FUND BASICS
INVESTMENT DETAILS
THE STOCK FUNDS
INVESTMENT OBJECTIVE
Each fund seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
AIR TRANSPORTATION PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the regional, national, and
international movement of passengers, mail, and freight via aircraft.
These companies may include, for example, major airlines, commuter
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.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
AUTOMOTIVE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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 after market) and
companies involved in the retail sale of vehicles, parts, or tires.
They may also include companies that provide automotive-related
services to manufacturers, distributors or consumers.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
BIOTECHNOLOGY PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development, and
manufacture of various biotechnological products, services, and
processes. These companies may include, for example, companies
involved with 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). They may also include
companies that manufacture biotechnological and biomedical products,
including devices and instruments; companies that provide
biotechnological processes or services; companies that provide
scientific and technological advances in biotechnology; and companies
involved with new or experimental technologies such as genetic
engineering, hybridoma and recombinant DNA techniques and monoclonal
antibodies.
FMR may also invest the fund's assets in securities of companies that
distribute biotechnological and biomedical products, including devices
and instruments, and companies that benefit significantly from
scientific and technological advances in biotechnology.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in stock brokerage, commodity
brokerage, investment banking, tax-advantaged investment or investment
sales, investment management, or related investment advisory services.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in providing business-related
services to companies and other organizations. These companies may
include those that provide, for example, data processing, consulting,
outsourcing, temporary employment, market research or database
services, printing, advertising, computer programming, credit
reporting, claims collection, mailing and photocopying, typically on a
contractual or fee basis.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
CHEMICALS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development,
manufacture or marketing of products or services related to the
chemical process industries. These companies may include, for example,
companies involved with products 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. They may
also include companies providing design, engineering, construction,
and consulting services to companies engaged in chemical processing.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
COMPUTERS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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. These companies may include, for
example, companies that provide products or services such as
mainframes, minicomputers, microcomputers, peripherals, computer and
office equipment wholesalers, software retailers, data or information
processing, office or factory automation, robotics, artificial
intelligence, computer-aided design, medical technology, engineering
and manufacturing, data communications and software.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
CONSTRUCTION AND HOUSING PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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. These
companies may include, for example, companies that produce basic
building materials such as cement, aggregates, gypsum, timber, and
wall and floor coverings; companies that supply home furnishings; and
companies that provide engineering or contracting services. They may
also include companies involved in real estate development and
construction financing such as homebuilders, architectural and design
firms, and property managers, and 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.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
CONSUMER INDUSTRIES PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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, furniture, major appliances,
and personal computers; and 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). They may also include companies that provide
consumer services such as lodging, child care, convenience stores, and
car rentals.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
CYCLICAL INDUSTRIES PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development,
manufacture, distribution, supply, or sale of materials, equipment,
products or services related to cyclical industries. These companies
may include, for example, companies in the the automotive, chemical,
construction and housing, defense and aerospace, environmental
services, industrial equipment and materials, paper and forest
products, and transportation industries.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
DEFENSE AND AEROSPACE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, manufacture or sale
of products or services related to the defense or aerospace
industries. These companies may include, for example, 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.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
DEVELOPING COMMUNICATIONS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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. These companies may include,
for example, companies involved in cellular communications, software
development, video conferencing, data processing, paging, personal
communications networks, special mobile radio, facsimile, fiber optic
transmission, voicemail, microwave, satellite, local and wide area
networking, and other transmission electronics. FMR places less
emphasis on traditional communications companies such as traditional
telephone utilities and large long distance carriers.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
ELECTRONICS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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. These companies
may include, for example, companies involved in all aspects of the
electronics business and in new technologies or specialty areas such
as defense electronics, medical electronics, consumer electronics,
advanced design and manufacturing technologies (e.g., computer-aided
design and computer-aided manufacturing, computer-aided engineering,
and robotics), and lasers and electro-optics.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
ENERGY PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged 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. These companies may include, for example, companies that
produce, generate, refine, control, transmit, market, distribute or
measure energy or energy fuels such as petro-chemicals; companies
involved in providing products and services to companies in the energy
field; companies involved in energy research or experimentation; and
companies involved in the exploration of new sources of energy,
conservation, and energy-related pollution control.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
ENERGY SERVICE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged 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. These companies may include, for example, companies providing
services and equipment for drilling processes such as offshore and
onshore drilling; companies involved in production and well
maintenance; companies involved in exploration engineering, data and
technology; companies that provide geological and geophysical
services; companies involved in energy transport; companies involved
in geothermal, electric or nuclear plant design or construction; and
companies with a variety of products or services including oil tool
rental, underwater well services, helicopter services, energy-related
capital equipment, and mining-related equipment or services. They may
also include companies that provide products and services to these
companies.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
ENVIRONMENTAL SERVICES PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development,
manufacture or distribution of products, processes, or services
related to waste management or pollution control. These companies may
include, for example, companies involved in 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. They may also include companies that provide design,
engineering, construction, and consulting services to companies
engaged in waste management or pollution control.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
FINANCIAL SERVICES PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80%, of the fund's assets in securities
of companies principally engaged in providing financial services to
consumers and industry. These companies may include, for example,
commercial banks, savings and loan associations, brokerage companies,
insurance companies, real estate-related companies, leasing companies,
and consumer and industrial finance companies.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
FOOD AND AGRICULTURE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the manufacture, sale, or
distribution of food and beverage products, agricultural products, and
products related to the development of new food technologies. These
companies may include, for example, companies that sell products and
services such as meat and poultry processing and wholesale and retail
distribution and warehousing of food and food-related products,
including restaurants and grocery stores; companies that manufacture
and distribute products including soft drinks, packaged food products
(such as cereals, pet foods, and frozen foods), health food and
dietary products, wood products, tobacco, fertilizer and agricultural
machinery; and companies engaged in the development of new
technologies to provide, for example, improved hybrid seeds, new and
safer food storage and new enzyme technologies.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
GOLD PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks and
in certain precious metals. FMR invests the fund's assets 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.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in gold-related activities, and in
gold bullion or coins. Gold-related activities may include
exploration, mining, processing, or dealing in gold or the manufacture
or distribution of gold products such as jewelry, watches and gold
foil and leaf. FMR treats investments in instruments whose value is
linked to the price of gold as investments in gold bullion or coins.
FMR may also invest the fund's assets in other precious metals in the
form of bullion, coins, securities indexed to the price of precious
metals, and securities of companies that manufacture and distribute
precious metal 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.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
HEALTH CARE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the design, manufacture, or sale
of products or services used for or in connection with health care or
medicine. These companies may include, for example, pharmaceutical
companies; companies involved in biotechnology, medical diagnostic,
biochemical or other health care 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 such as medical, dental and optical
products, hardware or services.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
HOME FINANCE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in investing in real estate, usually
through mortgages and other consumer-related loans. These companies
may include, for example, mortgage banking companies, real estate
investment trusts, government-sponsored enterprises, consumer finance
companies, savings and loan associations, savings banks, building and
loan associations, cooperative banks, commercial banks, and other
depository institutions.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INDUSTRIAL EQUIPMENT PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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. These companies may include, for example, 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; companies that
manufacture products or service equipment for the food, clothing or
sporting goods industries; cable equipment companies; and office
automation companies.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INDUSTRIAL MATERIALS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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, wood products, cement and
gypsum. These companies may include, for example, mining, processing,
transportation, and distribution companies, including equipment
suppliers and railroads.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
INSURANCE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in underwriting, reinsuring, selling,
distributing, or placing of property and casualty, life, or health
insurance. These companies may include, for example, 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 insurance brokers, reciprocals
and claims processors.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
LEISURE PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the design, production, or
distribution of goods or services in the leisure industries. These
companies may include, for example, companies that provide goods or
services including: 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;
sports arenas and gaming casinos; 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, and tobacco products.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
MEDICAL DELIVERY PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the ownership or management of
hospitals, nursing homes, health maintenance organizations, and other
companies specializing in the delivery of health care services. These
companies may include, for example, companies that operate acute care,
psychiatric, teaching, or specialized treatment hospitals; companies
that provide outpatient surgical, outpatient rehabilitation, or other
specialized care, home health care, drug and alcohol abuse treatment,
and dental care; companies that operate comprehensive health
maintenance organizations and nursing homes for the elderly and
disabled; companies that supply medical equipment; and companies that
provide related services.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in research, development,
manufacture, distribution, supply or sale of medical equipment and
devices and related technologies. These companies may include, for
example, companies involved in the design and manufacture of medical
equipment and devices, drug delivery technologies, hospital equipment
and supplies, medical instrumentation and medical diagnostics.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
MULTIMEDIA PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the development, production, sale,
and distribution of goods or services used in the broadcast and media
industries. These companies may include, for example, advertising
companies; companies that own, operate or broadcast free or pay
television, radio or cable stations; theaters; film studios;
publishers or sellers of newspapers, magazines, books or video
products; printing, cable television and video companies and equipment
providers; pay-per-view television companies; companies involved in
emerging technologies for the broadcast and media industries; cellular
communications companies; companies involved in the development,
syndication and transmission of television, movie programming,
advertising and cellular communications; companies that distribute
data-based information; and other companies involved in the ownership,
operation, or development of media products or services.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
NATURAL GAS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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 involved in the production,
refinement, transmission, distribution, marketing, control, or
measurement of natural gas; companies involved in exploration of
potential natural gas sources; companies involved in natural gas
research or experimentation; companies working toward the solution of
energy problems, such as energy conservation or pollution control
through the use of natural gas; companies working toward technological
advances in the natural gas field; and other companies providing
equipment or services to the field.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
NATURAL RESOURCES PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks and
in certain precious metals. FMR invests the fund's assets primarily in
companies that own or develop natural resources, or supply goods and
services to such companies.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in owning or developing natural
resources, or supplying goods and services to such companies, and in
precious metals. These companies may include, for example, companies
involved either directly or through subsidiaries in exploring, mining,
refining, processing, transporting, fabricating, dealing in, or owning
natural resources. 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. FMR treats investments in
instruments whose value is linked to the price of precious metals as
investments in precious metals.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
PAPER AND FOREST PRODUCTS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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. These companies may
include, for example, paper production and office product companies,
printers, and publishers.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
PRECIOUS METALS AND MINERALS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks and
in certain precious metals. FMR invests the fund's assets primarily in
companies engaged in exploration, mining, processing, or dealing in
gold, silver, platinum, diamonds, or other precious metals and
minerals.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in exploration, mining, processing,
or dealing in gold, silver, platinum, diamonds, or other precious
metals and minerals, and in precious metals. These companies may
include, for example, companies that manufacture and distribute
precious metal and minerals products (such as jewelry, watches, and
metal foils and leaf). FMR treats investments in instruments whose
value is linked to the price of precious metals as investments in
precious metals.
FMR may also invest the fund's assets in securities of companies that
invest in other companies engaged in gold and other precious metal and
mineral-related activities.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
REGIONAL BANKS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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, banks that are members of the Federal Reserve
System, and U.S. institutions whose deposits are not insured by the
federal government. In addition, these companies may offer merchant
banking, consumer and commercial finance, discount brokerage, leasing
and insurance.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
RETAILING PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in merchandising finished goods and
services primarily to individual consumers. These companies may
include, for example, general merchandise retailers; drug and
department stores; suppliers of goods and services for homes and
yards; specialty retailers selling a single category of merchandise
such as food, apparel, jewelry, toys, electronics, computers or home
improvement products; motor vehicle and marine dealers; warehouse
membership clubs; mail order operations; and companies involved in
alternative selling methods such as direct telephone marketing, mail
order, membership warehouse clubs, computer, or video-based electronic
systems.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
SOFTWARE AND COMPUTER SERVICES PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally 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) for general use or use by certain industries or groups;
companies that provide communications software; and companies that
provide time-sharing services, computer consulting or facilities
management services, and data communications services.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
TECHNOLOGY PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in offering, using or developing
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.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
TELECOMMUNICATIONS PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the development, manufacture, or
sale of communications services or communications equipment. These
companies may include, for example, companies that provide traditional
local and long-distance telephone service or equipment; companies that
provide cellular, paging, local and wide area product networks or
equipment; companies that provide satellite, microwave and cable
television or equipment; and companies involved in new technologies
such as fiber optics, semiconductors, and data transmission.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
TRANSPORTATION PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in providing transportation services
or companies principally engaged in the design, manufacture,
distribution, or sale of transportation equipment. These companies 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; companies that provide leasing and
maintenance for automobiles, trucks, containers, railcars and planes;
and companies that sell fuel-saving devices to the transportation
industry and those that sell insurance and software developed
primarily for transportation companies.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
UTILITIES GROWTH PORTFOLIO
FMR normally invests the fund's assets primarily in common stocks.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the public utilities industry and
companies deriving a majority of their revenues from their public
utility operations. These companies may include, for example,
companies that manufacture, produce, generate, transmit or sell gas or
electric energy; water supply, waste disposal and sewerage, and
sanitary service companies; and companies involved in the
communication field, including telephone, telegraph, satellite,
microwave and the provision of other communication facilities for the
public benefit.
FMR may invest the fund's assets in securities of foreign issuers in
addition to securities of domestic issuers.
Because the fund is considered non-diversified, FMR may invest a
significant percentage of the fund's assets in a single issuer.
In buying and selling securities for the fund, FMR relies on
fundamental analysis of each issuer and its potential for success in
light of its current financial condition, its industry position, and
economic and market conditions. Factors considered include growth
potential, earnings estimates and management.
FMR may lend the fund's securities to broker-dealers or other
institutions to earn income for the fund.
FMR may use various techniques, such as buying and selling futures
contracts, to increase or decrease the fund's exposure to changing
security prices or other factors that affect security values. If FMR's
strategies do not work as intended, the fund may not achieve its
objective.
DESCRIPTION OF PRINCIPAL SECURITY TYPES
EQUITY SECURITIES represent an ownership interest, or the right to
acquire an ownership interest, in an issuer. Different types of equity
securities provide different voting and dividend rights and priority
in the event of the bankruptcy of the issuer. Equity securities
include common stocks, preferred stocks, convertible securities and
warrants.
PRINCIPAL INVESTMENT RISKS
Many factors affect each fund's performance. A fund's share price
changes daily based on changes in market conditions and interest rates
and in response to other economic, political or financial
developments. A fund's reaction to these events will be affected by
the types of the securities in which the fund invests, the financial
condition, industry and economic sector, and geographic location of an
issuer, and the fund's level of investment in the securities of that
issuer. Because FMR concentrates each fund's investments in a
particular industry or group of industries, each fund's performance is
expected to be closely tied to economic and market conditions within
that industry or group of industries and to be more volatile than the
performance of less concentrated funds. In addition, because FMR may
invest a significant percentage of the assets of each fund (except
Financial Services, Home Finance and Regional Banks) in a single
issuer, the fund's performance could be closely tied to the market
value of that one issuer and could be more volatile than the
performance of more diversified funds. When you sell your shares of a
fund, they could be worth more or less than what you paid for them.
The following factors may significantly affect a fund's performance:
STOCK MARKET VOLATILITY. The value of equity securities fluctuates in
response to issuer, political, market and economic developments. In
the short term, equity prices can fluctuate dramatically in response
to these developments. Different parts of the market and different
types of equity securities can react differently to these
developments. For example, large cap stocks can react differently than
small cap stocks, and "growth" stocks can react differently than
"value" stocks. Issuer, political or economic developments can affect
a single issuer, issuers within an industry or economic sector or
geographic region, or the market as a whole.
FOREIGN EXPOSURE. Foreign securities, foreign currencies, and
securities issued by U.S. entities with substantial foreign operations
can involve additional risks relating to political, economic or
regulatory conditions in foreign countries. These risks include
fluctuations in foreign currencies; withholding or other taxes;
trading, settlement, custodial and other operational risks; and the
less stringent investor protection and disclosure standards of some
foreign markets. All of these factors can make foreign investments,
especially those in emerging markets, more volatile and potentially
less liquid than U.S. investments. In addition, foreign markets can
perform differently than the U.S. market.
INDUSTRY CONCENTRATION. Market conditions, interest rates, and
economic, regulatory or financial developments could significantly
affect a single industry or a group of related industries, and the
securities of companies in that industry or group of industries could
react similarly to these or other developments.
The AIR TRANSPORTATION industry can be significantly affected by
competition within the industry, domestic and foreign economies,
government regulation, and the price of fuel. 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.
The AUTOMOTIVE industry can be highly cyclical and companies in the
industry may suffer periodic operating losses. The industry can be
significantly affected by labor relations and fluctuating component
prices. 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.
The BIOTECHNOLOGY industry can be significantly affected by patent
considerations, intense competition, rapid technological change and
obsolescence, and government regulation. Biotechnology companies may
have persistent losses during a new product's transition from
development to production, and revenue patterns may be erratic.
The BROKERAGE AND INVESTMENT MANAGEMENT industry can be significantly
affected by changes in regulations, brokerage commission structure,
and a competitive environment combined with the high operating
leverage inherent in companies in this industry. The performance of
companies in this industry can be closely tied to the stock and bond
markets and can suffer during market declines. Revenues often depend
on overall market activity.
The BUSINESS SERVICES AND OUTSOURCING industry is, in part, subject to
continued demand for such services as companies and other
organizations seek alternative, cost effective means to meet their
economic goals. The industry can be significantly affected by
competitive pressures, such as technological developments, fixed-rate
pricing, and the ability to attract and retain skilled employees.
The CHEMICAL industry can be significantly affected by intense
competition, product obsolescence, and government regulation. As
regulations are developed and enforced, chemical companies may be
required to alter or cease production of a product, to pay fines, 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.
The COMPUTER industry can be significantly affected by competitive
pressures. For example, as product cycles shorten and manufacturing
capacity increases, these companies could become increasingly subject
to aggressive pricing, which hampers profitability. Profitability can
also be affected by changing domestic and international demand,
research and development costs, and product obsolescence.
The CONSTRUCTION AND HOUSING industry can be significantly affected by
changes in government spending on housing subsidies, public works and
transportation facilities such as highways and airports, as well as
changes in interest rates, consumer confidence and spending, taxation,
demographic patterns, housing starts, and the level of new and
existing home sales.
The CONSUMER industries can be significantly affected by 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.
The CYCLICAL industries can be significantly affected by general
economic trends, including employment, economic growth and interest
rates, changes in consumer sentiment and spending, commodity prices,
legislation, government regulation and spending, import controls, and
worldwide competition. For example, commodity price declines and unit
volume reductions resulting from an over-supply of materials used in
cyclical industries can adversely affect those industries.
Furthermore, a company in the cyclical industries can be subject to
liability for environmental damage, depletion of resources, and
mandated expenditures for safety and pollution control.
The DEFENSE AND AEROSPACE industry can be significantly affected by
government defense and aerospace regulation and spending policies
because companies involved in the defense and aerospace industry rely
to a large extent on U.S. (and other) government demand for their
products and services. Defense spending is currently under pressure
from efforts to control the U.S. budget deficit.
The DEVELOPING COMMUNICATIONS industry can be significantly affected
by failure to obtain, or delays in obtaining, financing or regulatory
approval, intense competition, product compatibility, consumer
preferences, and rapid obsolescence.
The ELECTRONICS industry can be significantly affected by rapid
obsolescence, intense competition and global demand.
The ENERGY industry can be significantly affected by fluctuations in
price and supply of energy fuels caused by events relating to
international politics, energy conservation, the success of
exploration projects, and tax and other government regulations.
The ENERGY SERVICE industry can be significantly affected by the
supply of and demand for specific products or services, the supply of
and demand for oil and gas, the price of oil and gas, exploration and
production spending, government regulation, world events, and economic
conditions.
The ENVIRONMENTAL SERVICES industry can be significantly affected by
intense competition and legislation resulting in more strict
government regulations and enforcement policies for both commercial
and governmental generators of waste materials as well as specific
expenditures designated for remedial cleanup efforts. As regulations
are developed and enforced, companies may be required to alter or
cease production of a product or service or to agree to restrictions
on their operations. In addition, hazardous materials involved in
environmental services present significant liability risk.
The FINANCIAL SERVICES industries are subject to extensive government
regulation which can 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 affect the
financial services industries. Insurance companies can be subject to
severe price competition. The financial services industries are
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.
The FOOD AND AGRICULTURE industry can be significantly affected by
demographic and product trends, food fads, marketing campaigns, and
environmental factors. In the United States, the agricultural products
industry is subject to regulation by numerous federal and state
government agencies.
The GOLD industry can be significantly affected by international
monetary and political developments such as currency devaluations or
revaluations, central bank movements, economic and social conditions
within a country, trade imbalances, or trade or currency restrictions
between countries. The prices of gold and other precious metal mining
securities can be subject to substantial fluctuations over short
periods of time. Because much of the world's gold reserves are located
in South Africa, the social and economic conditions there and in
neighboring countries can affect gold and gold-related companies
located in South Africa and worldwide.
The HEALTH CARE industries are subject to government regulation and
government approval of products and services, which could have a
significant effect on price and availability. Furthermore, the types
of products or services produced or provided by health care companies
quickly can become obsolete.
The HOME FINANCE industry can be significantly affected by regulatory
changes, interest rate movements, home mortgage demand, refinancing
activity and residential delinquency trends. 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. Change continues in the
origination, packaging, selling, holding, and insuring of home finance
products.
The INDUSTRIAL EQUIPMENT industry can be significantly affected by
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 equipment industry can also be
significantly affected by economic cycles, technical obsolescence,
labor relations, and government regulations.
The INDUSTRIAL MATERIALS industry can be 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, which leads to
commodity price declines and unit price reductions. Companies in the
industry can also be adversely affected by liability for environmental
damage, depletion of resources, and mandated expenditures for safety
and pollution control.
The INSURANCE industry can be significantly affected by interest
rates, general economic conditions, and price and marketing
competition. Property and casualty insurance profits can be affected
by weather catastrophes and other natural disasters. Life and health
insurance profits can be affected by mortality and morbidity rates.
Insurance companies can be adversely affected by inadequacy of cash
reserves, the inability to collect from reinsurance carriers,
liability for the coverage of environmental clean-up costs from past
years, and as yet unanticipated liabilities. Also, insurance companies
are subject to extensive government regulation, including the
imposition of maximum rate levels, and can be adversely affected by
proposed or potential tax law changes.
The LEISURE industry can be significantly affected by changing
consumer tastes and intense competition. The industry has reacted
strongly to technological developments and to the threat of government
regulation.
The MEDICAL DELIVERY industry is subject to extensive government
regulation, and can be significantly affected by government
reimbursement for medical expenses. Federal and state governments
provide a substantial percentage of revenues to health care service
providers via Medicare and Medicaid. The industry can also be
significantly affected by rising costs of medical products and
services, a shift away from traditional health insurance toward health
maintenance organizations, and increased emphasis on outpatient
services.
The MEDICAL EQUIPMENT AND SYSTEMS industry can be significantly
affected by patent considerations, rapid technological change and
obsolescence, government regulation, and government reimbursement for
medical expenses.
The MULTIMEDIA industry can be significantly affected by the federal
deregulation of cable and broadcasting, competitive pressures, and
government regulation, including regulation of the concentration of
investment in AM, FM, or TV stations.
The NATURAL GAS industry is 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 domestic and foreign
government regulations.
The NATURAL RESOURCES industries can be significantly affected by
events relating to international political and economic developments,
energy conservation, the success of exploration projects, and tax and
other government regulations.
The PAPER AND FOREST PRODUCTS industry can be significantly affected
by the health of the economy, worldwide production capacity, and
interest rates, which may affect product pricing, costs and operating
margins. These variables can also affect the level of industry and
consumer capital spending for paper and forest products.
The PRECIOUS METALS AND MINERALS industry can be significantly
affected by 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. The prices of precious metal mining securities can
be subject to substantial fluctuations over short periods of time.
Because much of the world's gold reserves are located in South Africa,
the social and economic conditions there and in neighboring countries
can affect gold and gold-related companies located in South Africa and
worldwide.
The REGIONAL BANKINg industry can be significantly affected by
legislation currently being considered that would reduce the
separation between commercial and investment banking businesses and
could change the laws governing capitalization and the savings and
loan industry. The services offered by banks could 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 can 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 banks which face
exposure to credit losses and are significantly affected by changes in
interest rates.
The RETAIL industry can be significantly affected by 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.
The SOFTWARE AND COMPUTER SERVICES industry can be significantly
affected by competitive pressures. For example, an increasing number
of companies and new product offerings can lead to aggressive pricing
and slower selling cycles.
The TECHNOLOGY industries can be significantly affected by
obsolescence of existing technology, short product cycles, falling
prices and profits, and competition from new market entrants.
The TELECOMMUNICATIONS industry, particularly telephone operating
companies, is subject to both federal and state government regulations
of rates of return and services that may be offered. Many
telecommunications companies fiercely compete for market share.
The TRANSPORTATION industry can be significantly affected by changes
in the economy, fuel prices, labor relations, and insurance costs. The
trend in the United States has been to deregulate the transportation
industry, which could have a favorable long-term effect, but future
government decisions may adversely affect transportation companies.
The UTILITIES industries can be significantly affected by government
regulation, financing difficulties, supply and demand of services or
fuel, and natural resource conservation.
ISSUER-SPECIFIC CHANGES. Changes in the financial condition of an
issuer, changes in specific economic or political conditions that
affect a particular type of security or issuer, and changes in general
economic or political conditions can affect the value of an issuer's
securities. The value of securities of smaller, less well-known
issuers can be more volatile than that of larger issuers. Smaller
issuers can have more limited product lines, markets or financial
resources.
In response to market, economic, political or other conditions, FMR
may temporarily use a different investment strategy for defensive
purposes. If FMR does so, different factors could affect a fund's
performance and the fund may not achieve its investment objective.
THE MONEY MARKET FUND
INVESTMENT OBJECTIVE
MONEY MARKET PORTFOLIO seeks to provide high current income,
consistent with preservation of capital and liquidity.
PRINCIPAL INVESTMENT STRATEGIES
FMR invests the fund's assets in U.S. dollar-denominated money market
securities of domestic and foreign issuers, including U.S. Government
securities and repurchase agreements. FMR also may enter into reverse
repurchase agreements for the fund. FMR invests at least 80% of the
fund's assets in money market instruments.
FMR will invest more than 25% of the fund's total assets in the
financial services industry.
In buying and selling securities for the fund, FMR complies with
industry-standard requirements for money market funds regarding the
quality, maturity and diversification of the fund's investments. FMR
stresses maintaining a stable $1.00 share price, liquidity and income.
DESCRIPTION OF PRINCIPAL SECURITY TYPES
MONEY MARKET SECURITIES are high-quality, short-term securities that
pay a fixed, variable or floating interest rate. Securities are often
specifically structured so that they are eligible investments for a
money market fund. For example, in order to satisfy the maturity
restrictions for a money market fund, some money market securities
have demand or put features which have the effect of shortening the
security's maturity. Taxable money market securities include bank
certificates of deposit, bank acceptances, bank time deposits, notes,
commercial paper and U.S. Government securities.
PRINCIPAL INVESTMENT RISKS
Many factors affect the fund's performance. The fund's yield will
change daily based on changes in interest rates and other market
conditions. Although the fund is managed to maintain a stable $1.00
share price, there is no guarantee that the fund will be able to do
so. For example, a major increase in interest rates or a decrease in
the credit quality of the issuer of one of the fund's investments
could cause the fund's share price to decrease. While the fund will be
charged premiums by a mutual insurance company for coverage of
specified types of losses related to default or bankruptcy on certain
securities, the fund may incur losses regardless of the insurance.
The following factors may significantly affect the fund's performance:
INTEREST RATE CHANGES. Money market securities have varying levels of
sensitivity to changes in interest rates. In general, the price of a
money market security can fall when interest rates rise and can rise
when interest rates fall. Securities with longer maturities and the
securities of issuers in the financial services sector can be more
sensitive to interest rate changes. Short-term securities tend to
react to changes in short-term interest rates.
FOREIGN EXPOSURE. Issuers located in foreign countries and entities
located in foreign countries that provide credit support or a
maturity-shortening structure can involve increased risks. Extensive
public information about the issuer or provider may not be available
and unfavorable political, economic or governmental developments could
affect the value of the security.
FINANCIAL SERVICES EXPOSURE. Financial services companies are highly
dependent on the supply of short-term financing. The value of
securities of issuers in the financial services sector can be
sensitive to changes in government regulation and interest rates and
to economic downturns in the United States and abroad.
ISSUER-SPECIFIC CHANGES. Changes in the financial condition of an
issuer, changes in specific economic or political conditions that
affect a particular type of issuer, and changes in general economic or
political conditions can affect the credit quality or value of an
issuer's securities. Entities providing credit support or a
maturity-shortening structure also can be affected by these types of
changes. If the structure of a security fails to function as intended,
the security could decline in value.
FUNDAMENTAL INVESTMENT POLICIES
The policies discussed below are fundamental, that is, subject to
change only by shareholder approval.
AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in
the regional, national and international movement of passengers, mail,
and freight via aircraft.
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.
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.
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO invests primarily in
companies that provide business-related services to companies and
other organizations.
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 INDUSTRIES 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.
FINANCIAL SERVICES PORTFOLIO invests primarily in companies that
provide financial services to consumers and industry.
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.
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.
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.
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.
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.
MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO invests primarily in companies
engaged in research, development, manufacture, distribution, supply or
sale of medical equipment and devices and related technologies.
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.
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.
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.
REGIONAL BANKS PORTFOLIO invests primarily in companies engaged in
accepting deposits and making commercial and principally non-mortgage
consumer loans.
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.
EACH STOCK FUND seeks capital appreciation.
With the exception of Business Services and Outsourcing, Cyclical
Industries, Medical Equipment and Systems, 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 Gold and Precious Metals and
Minerals, in certain precious metals. For each stock fund (except
Business Services and Outsourcing, Cyclical Industries, Medical
Equipment and Systems, 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 Business Services and Outsourcing, Cyclical Industries,
Medical Equipment and Systems, and Natural Resources) may temporarily
invest substantially in investment-grade debt securities.
VALUING SHARES
Each fund is open for business each day the New York Stock Exchange
(NYSE) is open.
Each fund's net asset value per share (NAV) is the value of a single
share. Fidelity normally calculates each stock fund's NAV as of each
hour, from 10:00 a.m. to the close of business of the NYSE, normally
4:00 p.m. Eastern time. On days when the NYSE closes early, Fidelity
will calculate the last NAV for the stock funds as of the close of the
NYSE. In addition, Fidelity will not calculate a stock fund's NAV if
trading on the NYSE is restricted or as permitted by the Securities
and Exchange Commission (SEC). Fidelity normally calculates the money
market fund's NAV as of the close of the NYSE, normally 4:00 p.m.
Eastern time. However, the money market fund's NAV may be calculated
earlier if trading on the NYSE is restricted or as permitted by the
SEC. Each fund's assets are valued as of these times for the purpose
of computing the fund's NAV.
To the extent that each fund's assets are traded in other markets on
days when the NYSE is closed, the value of the fund's assets may be
affected on days when the fund is not open for business. In addition,
trading in some of a fund's assets may not occur on days when the fund
is open for business.
The money market fund's assets are valued on the basis of amortized
cost.
Each stock fund's assets are valued primarily on the basis of market
quotations. Certain short-term securities are valued on the basis of
amortized cost. If market quotations are not readily available for a
security or if a security's value has been materially affected by
events occurring after the close of the exchange or market on which
the security is principally traded (for example, a foreign exchange or
market), that security may be valued by another method that the Board
of Trustees believes accurately reflects fair value. A security's
valuation may differ depending on the method used for determining
value.
SHAREHOLDER INFORMATION
BUYING AND SELLING SHARES
GENERAL INFORMATION
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, Fidelity Brokerage
Services, Inc. (FBSI). Fidelity is also a leader in providing
tax-advantaged retirement plans for individuals investing on their own
or through their employer.
For account, product and service information, please use the following
Web site and phone numbers:
(small solid bullet) For information over the Internet, visit
Fidelity's Web site at www.fidelity.com.
(small solid bullet) For accessing account information automatically
by phone, use TouchTone Xpress(registered trademark), 1-800-544-5555.
(small solid bullet) For exchanges and redemptions, 1-800-544-7777.
(small solid bullet) For account assistance, 1-800-544-6666.
(small solid bullet) For mutual fund and retirement information,
1-800-544-8888.
(small solid bullet) For brokerage information, 1-800-544-7272.
(small solid bullet) TDD - Service for the Deaf and Hearing-Impaired,
1-800-544-0118 (9:00 a.m.-9:00 p.m. Eastern time).
Please use the following addresses:
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
OVERNIGHT EXPRESS
Fidelity Investments
2300 Litton Lane - KH1A
Hebron, KY 41048
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75039-5517
You may buy or sell shares of the funds through a retirement account
or an investment professional. If you invest through a retirement
account or an investment professional, the procedures for buying,
selling and exchanging shares of a fund and the account features and
policies may differ. Additional fees may also apply to your investment
in a fund, including a transaction fee if you buy or sell shares of
the fund through a broker or other investment professional.
Certain methods of contacting Fidelity, such as by telephone or
electronically, may be unavailable or delayed (for example, during
periods of unusual market activity). In addition, the level and type
of service available may be restricted based on criteria established
by Fidelity.
The different ways to set up (register) your account with Fidelity are
listed in the following table.
WAYS TO SET UP YOUR ACCOUNT
INDIVIDUAL OR JOINT TENANT
FOR YOUR GENERAL INVESTMENT NEEDS
RETIREMENT
FOR TAX-ADVANTAGED RETIREMENT SAVINGS
(solid bullet) TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS)
(solid bullet) ROTH IRAS
(solid bullet) ROLLOVER IRAS
(solid bullet) 401(K) PLANS AND CERTAIN OTHER 401(A)-QUALIFIED PLANS
(solid bullet) KEOGH PLANS
(solid bullet) SIMPLE IRAS
(solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS)
(solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS)
(solid bullet) 403(B) CUSTODIAL ACCOUNTS
(solid bullet) DEFERRED COMPENSATION PLANS (457 PLANS)
GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA)
TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS
TRUST
FOR MONEY BEING INVESTED BY A TRUST
BUSINESS OR ORGANIZATION
FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS OR
OTHER GROUPS
BUYING SHARES
The price to buy one share of each fund is the fund's offering price
or the fund's NAV, depending on whether you pay a sales charge.
If you pay a sales charge, your price will be the fund's offering
price. When you buy shares of a fund at the offering price, Fidelity
deducts the appropriate sales charge and invests the rest in the fund.
If you qualify for a sales charge waiver, your price will be the
fund's NAV.
The offering price of each fund is its NAV divided by the difference
between one and the applicable sales charge percentage. The maximum
sales charge is 3.00% of the offering price.
Your shares will be bought at the next offering price or NAV, as
applicable, calculated after your investment is received in proper
form.
Short-term or excessive trading into and out of a fund may harm
performance by disrupting portfolio management strategies and by
increasing expenses. Accordingly, a fund may reject any purchase
orders, including exchanges, particularly from market timers or
investors who, in FMR's opinion, have a pattern of short-term or
excessive trading or whose trading has been or may be disruptive to
that fund. For these purposes, FMR may consider an investor's trading
history in that fund or other Fidelity funds, and accounts under
common ownership or control.
Each fund may stop offering shares completely or may offer shares only
on a limited basis, for a period of time or permanently.
When you place an order to buy shares, 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) Fidelity 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 canceled and you could be liable for any losses or fees a fund or
Fidelity 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 Fidelity
receives instructions in proper form from you.
Certain financial institutions that have entered into sales agreements
with Fidelity Distributors Corporation (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 order will
be canceled and the financial institution could be held liable for
resulting fees or losses.
MINIMUMS
TO OPEN AN ACCOUNT $2,500
For certain Fidelity retirement accountsA $500
TO ADD TO AN ACCOUNT $250
Through regular investment plans $100
MINIMUM BALANCE $2,000
For certain Fidelity retirement accountsA $500
A FIDELITY TRADITIONAL IRA, ROTH IRA, ROLLOVER IRA, SEP-IRA, AND KEOGH
ACCOUNTS.
There is no minimum account balance or initial or subsequent purchase
minimum for investments through Fidelity Portfolio Advisory Services
SM, a qualified state tuition program, certain Fidelity retirement
accounts funded through salary deduction, or accounts opened with the
proceeds of distributions from such retirement accounts.
In addition, each fund may waive or lower purchase minimums in other
circumstances.
KEY INFORMATION
PHONE 1-800-544-7777 TO OPEN AN ACCOUNT
(small solid bullet) Exchange
from another Fidelity fund.
Call the phone number at left.
TO ADD TO AN ACCOUNT
(small solid bullet) Exchange
from another Fidelity fund.
Call the phone number at left.
(small solid bullet) Use
Fidelity Money
Line(registered trademark)
to transfer from your bank
account.
INTERNET WWW.FIDELITY.COM TO OPEN AN ACCOUNT
(small solid bullet) Complete
and sign the application.
Make your check payable to
the complete name of the
fund. Mail to the address
under "Mail" below.
TO ADD TO AN ACCOUNT
(small solid bullet) Exchange
from another Fidelity fund.
(small solid bullet) Use
Fidelity Money Line to
transfer from your bank
account.
MAIL FIDELITY INVESTMENTS TO OPEN AN ACCOUNT
P.O. BOX 770001 CINCINNATI, (small solid bullet) Complete
OH 45277-0002 and sign the application.
Make your check payable to
the complete name of the
fund. Mail to the address at
left.
TO ADD TO AN ACCOUNT
(small solid bullet) Make
your check payable to the
complete name of the fund.
Indicate your fund account
number on your check and
mail to the address at left.
(small solid bullet) Exchange
from another Fidelity fund.
Send a letter of instruction
to the address at left,
including your name, the
funds' names, the fund
account numbers, and the
dollar amount or number of
shares to be exchanged.
IN PERSON TO OPEN AN ACCOUNT
(small solid bullet) Bring
your application and check
to a Fidelity Investor
Center. Call 1-800-544-9797
for the center nearest you.
TO ADD TO AN ACCOUNT
(small solid bullet) Bring
your check to a Fidelity
Investor Center. Call
1-800-544-9797 for the
center nearest you.
WIRE TO OPEN AN ACCOUNT
(small solid bullet) Call
1-800-544-7777 to set up
your account and to arrange
a wire transaction.
(small solid bullet) Wire
within 24 hours to: Bankers
Trust Company, Bank Routing
# 021001033, Account #
00163053.
(small solid bullet) Specify
the complete name of the
fund and include your new
fund account number and your
name.
TO ADD TO AN ACCOUNT
(small solid bullet) Wire to:
Bankers Trust Company, Bank
Routing # 021001033, Account
# 00163053.
(small solid bullet) Specify
the complete name of the
fund and include your fund
account number and your name.
AUTOMATICALLY TO OPEN AN ACCOUNT
(small solid bullet) Not
available.
TO ADD TO AN ACCOUNT
(small solid bullet) Use
Fidelity Automatic Account
Builder(registered
trademark) or Direct Deposit.
(small solid bullet) Direct
Deposit is not available for
Select stock funds.
(small solid bullet) Use
Fidelity Automatic Exchange
Service to exchange from a
Fidelity money market fund.
SELLING SHARES
The price to sell one share of the money market fund is the fund's
NAV. The price to sell one share of each stock fund is the fund's NAV
minus the applicable redemption fee (trading fee).
Each stock fund will deduct a trading fee of $7.50 or 0.75%, depending
on how long you held your shares, from the redemption amount when you
sell your shares. For stock fund shares held 29 days or less, the
trading fee is equal to 0.75% of the redemption amount. For stock fund
shares held 30 days or more, the trading fee is equal to the lesser of
$7.50 or 0.75% of the redemption amount. This fee is paid to the fund
rather than Fidelity, and is designed to offset the brokerage
commissions, market impact, and other costs associated with
fluctuations in fund asset levels and cash flow caused by shareholder
trading.
If you bought shares on different days, the shares you held longest
will be redeemed first for purposes of determining the trading fee.
The trading fee does not apply to shares that were acquired through
reinvestment of distributions.
Your shares will be sold at the next NAV calculated after your order
is received in proper form, minus the applicable trading fee.
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:
(small solid bullet) You wish to sell more than $100,000 worth of
shares;
(small solid bullet) Your account registration has changed within the
last 30 days;
(small solid bullet) The check is being mailed to a different address
than the one on your account (record address);
(small solid bullet) The check is being made payable to someone other
than the account owner; or
(small solid bullet) 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.
When you place an order to sell shares, note the following:
(small solid bullet) 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), except accounts not subject to
account minimums.
(small solid bullet) Normally, Fidelity will process redemptions by
the next business day, but Fidelity may take up to seven days to
process redemptions if making immediate payment would adversely affect
a fund.
(small solid bullet) Redemption proceeds may be delayed until money
from prior purchases sufficient to cover your redemption has been
received and collected. This can take up to seven business days after
a purchase. Exchange proceeds are paid from one Select fund to another
Select fund or to another Fidelity equity fund in three business days.
Exchange proceeds are recorded in your shareholder account when the
transaction occurs.
(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.
(small solid bullet) Redemption proceeds may be paid in securities or
other assets rather than in cash if the Board of Trustees determines
it is in the best interests of a fund.
(small solid bullet) You will not receive interest on amounts
represented by uncashed redemption checks.
(small solid bullet) Unless otherwise instructed, Fidelity will send a
check to the record address.
KEY INFORMATION
PHONE 1-800-544-7777 (small solid bullet) Call the
phone number at left to
initiate a wire transaction
or to request a check for
your redemption.
(small solid bullet) Use
Fidelity Money Line to
transfer to your bank account.
(small solid bullet) Exchange
to another Fidelity fund.
Call the phone number at left.
INTERNET WWW.FIDELITY.COM (small solid bullet) Exchange
to another Fidelity fund.
(small solid bullet) Use
Fidelity Money Line to
transfer to your bank account.
MAIL FIDELITY INVESTMENTS INDIVIDUAL, JOINT TENANT,
P.O. BOX 660602 DALLAS, TX SOLE PROPRIETORSHIP, UGMA,
75266-0602 UTMA
(small solid bullet) Send a
letter of instruction to the
address at left, including
your name, the fund's name,
your fund account number,
and the dollar amount or
number of shares to be sold.
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
(small solid bullet) The
account owner should
complete a retirement
distribution form. Call
1-800-544-6666 to request one.
TRUST
(small solid bullet) Send a
letter of instruction to the
address at left, including
the trust's name, the fund's
name, the trust's fund
account number, and the
dollar amount or number of
shares to be sold. The
trustee must sign the letter
of instruction 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
(small solid bullet) Send a
letter of instruction to the
address at left, including
the firm's name, the fund's
name, the firm's fund
account number, and the
dollar amount or number of
shares to be sold. At least
one person authorized by
corporate resolution to act
on the account must sign the
letter of instruction.
(small solid bullet) Include
a corporate resolution with
corporate seal or a
signature guarantee.
EXECUTOR, ADMINISTRATOR,
CONSERVATOR, GUARDIAN
(small solid bullet) Call
1-800-544-6666 for
instructions.
IN PERSON INDIVIDUAL, JOINT TENANT,
SOLE PROPRIETORSHIP, UGMA,
UTMA
(small solid bullet) Bring a
letter of instruction to a
Fidelity Investor Center.
Call 1-800-544-9797 for the
center nearest you. 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
(small solid bullet) The
account owner should
complete a retirement
distribution form. Visit a
Fidelity Investor Center to
request one. Call
1-800-544-9797 for the
center nearest you.
TRUST
(small solid bullet) Bring a
letter of instruction to a
Fidelity Investor Center.
Call 1-800-544-9797 for the
center nearest you. The
trustee must sign the letter
of instruction 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
(small solid bullet) Bring a
letter of instruction to a
Fidelity Investor Center.
Call 1-800-544-9797 for the
center nearest you. At least
one person authorized by
corporate resolution to act
on the account must sign the
letter of instruction.
(small solid bullet) Include
a corporate resolution with
corporate seal or a
signature guarantee.
EXECUTOR, ADMINISTRATOR,
CONSERVATOR, GUARDIAN
(small solid bullet) Visit a
Fidelity Investor Center for
instructions. Call
1-800-544-9797 for the
center nearest you.
AUTOMATICALLY (small solid bullet) Use
Personal Withdrawal Service
to set up periodic
redemptions from your stock
fund account.
EXCHANGING SHARES
An exchange involves the redemption of all or a portion of the shares
of one fund and the purchase of shares of another fund.
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 policies and restrictions
governing exchanges:
(small solid bullet) The fund you are exchanging into must be
available for sale in your state.
(small solid bullet) You may exchange only 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) You may pay a $7.50 fee for each exchange out of
the stock funds, unless you place your transaction through Fidelity's
automated exchange services.
(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 may enact
limitations in the future. Each fund may 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 will be
counted together for purposes of the four exchange limit.
(small solid bullet) Each fund may reject exchange purchases in excess
of 1% of its net assets or $1 million, whichever is less.
(small solid bullet) The exchange limit may be modified for accounts
held by 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 may 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.
The funds may terminate or modify the exchange privileges in the
future.
Other funds may have different exchange restrictions, and may impose
administrative fees of up to 1.00% and trading fees of up to 3.00% of
the amount exchanged. Check each fund's prospectus for details.
ACCOUNT FEATURES AND POLICIES
FEATURES
The following features are available to buy and sell shares of the
funds.
AUTOMATIC INVESTMENT AND WITHDRAWAL PROGRAMS. Fidelity offers
convenient services that let you automatically transfer money into
your account, between accounts or out of your account. While automatic
investment programs do not guarantee a profit and will not protect you
against 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. Automatic withdrawal or exchange programs
can be a convenient way to provide a consistent income flow or to move
money between your investments.
<TABLE>
<CAPTION>
<S> <C> <C>
FIDELITY AUTOMATIC ACCOUNT
BUILDER(registered
trademark) TO MOVE MONEY
FROM YOUR BANK ACCOUNT TO A
FIDELITY FUND.
MINIMUM FREQUENCY PROCEDURES
$100 Monthly or quarterly (small solid bullet) To set
up for a new account,
complete the appropriate
section on the fund
application.
(small solid bullet) To set
up for existing accounts,
call 1-800-544-6666 or visit
Fidelity's Web site for an
application.
(small solid bullet) To make
changes, 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.
MINIMUM FREQUENCY PROCEDURES
$100 Every pay period (small solid bullet) Not
available for Select stock
funds.
(small solid bullet) To set
up for a new account, check
the appropriate box on the
fund application.
(small solid bullet) To set
up for an existing account,
call 1-800-544-6666 or visit
Fidelity's Web site for an
authorization form.
(small solid bullet) To make
changes you will need a new
authorization form. Call
1-800-544-6666 or visit
Fidelity's Web site to
obtain one.
FIDELITY AUTOMATIC EXCHANGE
SERVICE TO MOVE MONEY FROM A
FIDELITY MONEY MARKET FUND
TO ANOTHER FIDELITY FUND.
MINIMUM FREQUENCY PROCEDURES
$100 Monthly, bimonthly, (small solid bullet) To set
quarterly, or annually up, call 1-800-544-6666
after both accounts are
opened.
(small solid bullet) To make
changes, call 1-800-544-6666
at least three business days
prior to your next scheduled
exchange date.
</TABLE>
PERSONAL WITHDRAWAL SERVICE
TO SET UP PERIODIC
REDEMPTIONS FROM YOUR STOCK
FUND ACCOUNT TO YOU OR TO
YOUR BANK ACCOUNT.
FREQUENCY PROCEDURES
Monthly (small solid bullet) To set
up, call 1-800-544-6666.
(small solid bullet) To make
changes, call Fidelity at
1-800-544-6666 at least
three business days prior to
your next scheduled
withdrawal date.
(small solid bullet) Because
of each fund's front-end
sales charge, you may not
want to set up a systematic
withdrawal program when you
are buying shares on a
regular basis.
OTHER FEATURES. The following other features are also available to buy
and sell shares of the funds.
WIRE
TO PURCHASE AND SELL SHARES VIA THE FEDERAL RESERVE WIRE SYSTEM.
(small solid bullet) You must sign up for the Wire feature before
using it. Complete the appropriate section on the application when
opening your account, or call 1-800-544-7777 to add the feature after
your account is opened. Call 1-800-544-7777 before your first use to
verify that this feature is set up on your account.
(small solid bullet) To sell shares by wire, you must designate the
U.S. commercial bank account(s) into which you wish the redemption
proceeds deposited.
FIDELITY MONEY LINE
TO TRANSFER MONEY BETWEEN YOUR BANK ACCOUNT AND YOUR FUND ACCOUNT.
(small solid bullet) You must sign up for the Money Line feature
before using it. Complete the appropriate section on the application
and then call 1-800-544-7777 or visit Fidelity's Web site before your
first use to verify that this feature is set up on your account.
(small solid bullet) Most transfers are complete within three business
days of your call.
(small solid bullet) Maximum purchase: $100,000
FIDELITY ON-LINE XPRESS+(registered trademark)
TO MANAGE YOUR INVESTMENTS THROUGH YOUR PC.
CALL 1-800-544-7272 OR VISIT FIDELITY'S WEB SITE FOR MORE INFORMATION.
(small solid bullet) For account balances and holdings;
(small solid bullet) To review recent account history;
(small solid bullet) For mutual fund and brokerage trading; and
(small solid bullet) For access to research and analysis tools.
FIDELITY ONLINE TRADING
TO ACCESS AND MANAGE YOUR ACCOUNT OVER THE INTERNET AT FIDELITY'S WEB
SITE.
(small solid bullet) For account balances and holdings;
(small solid bullet) To review recent account history;
(small solid bullet) To obtain quotes;
(small solid bullet) For mutual fund and brokerage trading; and
(small solid bullet) To access third-party research on companies,
stocks, mutual funds and the market.
TOUCHTONE XPRESS(registered trademark)
TO ACCESS AND MANAGE YOUR ACCOUNT AUTOMATICALLY BY PHONE.
CALL 1-800-544-5555.
(small solid bullet) For account balances and holdings;
(small solid bullet) For mutual fund and brokerage trading;
(small solid bullet) To obtain quotes;
(small solid bullet) To review orders and mutual fund activity; and
(small solid bullet) To change your personal identification number
(PIN).
POLICIES
The following policies apply to you as a shareholder.
STATEMENTS AND REPORTS that Fidelity sends to you include the
following:
(small solid bullet) Confirmation statements (after transactions
affecting your account balance except reinvestment of distributions in
the fund or another fund and certain transactions through automatic
investment or withdrawal programs).
(small solid bullet) Monthly or quarterly account statements
(detailing account balances and all transactions completed during the
prior month or quarter).
(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 a fund. Call Fidelity at 1-800-544-8544 if you
need additional copies of financial reports or prospectuses.
Electronic copies of most financial reports and prospectuses are
available at Fidelity's Web site. To participate in Fidelity's
electronic delivery program, call Fidelity or visit Fidelity's Web
site for more information.
You may initiate many TRANSACTIONS BY TELEPHONE OR ELECTRONICALLY.
Fidelity will not be responsible for any losses resulting from
unauthorized transactions if it follows reasonable security procedures
designed to verify the identity of the investor. Fidelity will request
personalized security codes or other information, and may also record
calls. For transactions conducted through the Internet, Fidelity
recommends the use of an Internet browser with 128-bit encryption. You
should verify the accuracy of your confirmation statements immediately
after you receive them. If you do not want the ability to sell and
exchange by telephone, call Fidelity for instructions.
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.
Fidelity may 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 expected 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 Fidelity, 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 accounts with
Fidelity maintained by Fidelity Service Company, Inc. 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 (except accounts not
subject to account minimums), you will be given 30 days' notice to
reestablish the minimum balance. If you do not increase your balance,
Fidelity may close your account and send the proceeds to you. Your
shares will be sold at the NAV, minus the applicable trading fee for
the stock funds, on the day your account is closed.
Fidelity may charge a FEE FOR CERTAIN SERVICES, such as providing
historical account documents.
DIVIDENDS AND CAPITAL GAINS DISTRIBUTIONS
Each fund earns dividends, interest and other income from its
investments, and distributes this income (less expenses) to
shareholders as dividends. Each fund also realizes capital gains from
its investments, and distributes these gains (less any losses) to
shareholders as capital gains distributions.
Each stock fund normally pays dividends and capital gains
distributions in April and December.
Distributions you receive from the money market fund consist primarily
of dividends. The money market fund normally declares dividends daily
and pays them monthly.
EARNING DIVIDENDS
For the money market fund, shares begin to earn dividends on the first
business day following the day of purchase.
For the money market fund, shares earn dividends until, but not
including, the next business day following the day of redemption.
When you exchange from a stock fund to the money market fund, you will
earn dividends the next business day. When you exchange from the money
market fund to a stock fund, you will earn dividends until, but not
including, the next business day following the day of redemption.
Exchange proceeds are paid from one Select fund to another or from a
Select fund to a Fidelity equity fund in three business days. As a
result, the delay in paying exchange proceeds when exchanging between
the money market fund and a stock fund or a Fidelity equity fund could
result in a lower or more volatile money market fund yield.
DISTRIBUTION OPTIONS
When you open an account, specify on your application how you want to
receive your distributions. The following options may be available for
each fund's distributions:
1. REINVESTMENT OPTION. Your dividends and capital gains 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. (stock funds only) Your capital gains
distributions will be automatically reinvested in additional shares of
the fund. Your dividends will be paid in cash.
3. CASH OPTION. Your dividends and capital gains distributions will be
paid in cash.
4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividends
will be automatically invested in shares of another identically
registered Fidelity fund. Your capital gains distributions will be
automatically invested in shares of another identically registered
Fidelity fund, automatically reinvested in additional shares of the
fund, or paid in cash.
Not all distribution options are available for every account. If the
option you prefer is not listed on your account application, or if you
want to change your current option, call Fidelity.
If you elect to receive distributions paid in cash by check and the
U.S. Postal Service does not deliver your checks, your distribution
option may be converted to the Reinvestment Option. You will not
receive interest on amounts represented by uncashed distribution
checks.
TAX CONSEQUENCES
As with any investment, your investment in a fund could have tax
consequences for you. If you are not investing through a
tax-advantaged retirement account, you should consider these tax
consequences.
TAXES ON DISTRIBUTIONS. Distributions you receive from each fund are
subject to federal income tax, and may also be subject to state or
local taxes.
For federal tax purposes, each fund's dividends and distributions of
short-term capital gains are taxable to you as ordinary income. Each
fund's distributions of long-term capital gains are taxable to you
generally as capital gains.
If you buy shares when a fund has realized but not yet distributed
income (stock funds only) or capital gains, you will be "buying a
dividend" by paying the full price for the shares and then receiving a
portion of the price back in the form of a taxable distribution.
Any taxable distributions you receive from a fund will normally be
taxable to you when you receive them, regardless of your distribution
option. For the money market fund, if you elect to receive
distributions in cash or to invest distributions automatically in
shares of another Fidelity fund, you will receive certain December
distributions in January, but those distributions will be taxable as
if you received them on December 31.
TAXES ON TRANSACTIONS. Your stock fund redemptions, including
exchanges, may result in a capital gain or loss for federal tax
purposes. A capital gain or loss on your investment in a fund is the
difference between the cost of your shares and the price you receive
when you sell them.
FUND SERVICES
FUND MANAGEMENT
Each fund is a mutual fund, an investment that pools shareholders'
money and invests it toward a specified goal.
FMR is each fund's manager.
As of April 30, 1998, FMR had approximately $529 billion in
discretionary assets under management.
As the manager, FMR is responsible for choosing the funds' investments
and handling their business affairs.
Affiliates assist FMR with foreign investments:
(small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR
U.K.), in London, England, serves as a sub-adviser for each stock
fund. FMR U.K. was organized in 1986 to provide investment research
and advice to FMR. Currently, FMR U.K. provides investment research
and advice on issuers based outside the United States and may also
provide investment advisory services for each stock fund.
(small solid bullet) Fidelity Management & Research Far East Inc. (FMR
Far East), in Tokyo, Japan, serves as sub-adviser for each stock fund.
FMR Far East was organized in 1986 to provide investment research and
advice to FMR. Currently, FMR Far East provides investment research
and advice on issuers based outside the United States and may also
provide investment advisory services for each stock fund.
Fidelity Investments Money Management, Inc. (FIMM), in Merrimack, New
Hampshire, serves as sub-adviser for the money market fund. FIMM is
primarily responsible for choosing investments for the money market
fund.
FIMM is an affiliate of FMR. As of May 1, 1998, FIMM had approximately
$99 billion in discretionary assets under management.
A fund could be adversely affected if the computer systems used by FMR
and other service providers do not properly process and calculate
date-related information from and after January 1, 2000. FMR has
advised each fund that it is actively working on necessary changes to
its computer systems and expects that its systems, and those of other
major service providers, will be modified prior to January 1, 2000.
However, there can be no assurance that there will be no adverse
impact on a fund.
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 his bachelor of arts
degree from Tufts University.
James Catudal is manager of Energy Service, which he has managed since
January 1998. Mr. Catudal joined Fidelity in 1997 as a research
analyst. Previously, he was an equity analyst with State Street
Research & Management. He received an MBA from the Amos Tuck School at
Dartmouth College in 1995.
Douglas Chase is manager of Consumer Industries, which he has managed
since August 1997. He also manages other Fidelity funds. Mr. Chase
joined Fidelity as an equity analyst in 1993 after receiving his MBA
from the University of Michigan.
Tim Cohen is manager of Insurance, which he has managed since February
1999. Mr. Cohen Joined Fidelity as an analyst in 1996, after receiving
an MBA from The Wharton School at the University of Pennsylvania.
Previously, he was a senior associate in the business assurance group
at Coopers & Lybrand (now PricewaterhouseCoopers LLP), Boston, from
1991 to 1994.
George Domolky is manager of Precious Metals and Minerals and Gold,
both of which he has managed since February 1997. Previously, he
managed Canada from 1987 to 1996 as well as other Fidelity funds. Mr.
Domolky joined Fidelity in 1981, and has worked as an analyst and
manager.
Jeff Dorsey is manager of Multimedia and Leisure, which he has managed
since December 1997 and January 1998, respectively. Since joining
Fidelity in 1991, Mr. Dorsey has worked as an analyst, senior analyst,
corporate strategist and manager.
Noah Eccles is manager of Paper and Forest Products, which he has
managed since January 1999. Previously, he worked as an analyst. Mr.
Eccles joined Fidelity as a research associate in 1997, after
receiving a bachelor of arts degree in economics from Trinity College
in 1992 and an MBA from The Wharton School at the University of
Pennsylvania in 1997.
Robert Ewing is Manager of Financial Services, which he has managed
since January 1998. He also manages another Fidelity fund. Since
joining Fidelity in 1990, Mr. Ewing has worked as a research
associate, analyst and manager.
Jeffrey Feingold is manager of Defense and Aerospace, which he has
managed since November 1998. Mr. Feingold joined Fidelity in 1997 and
has worked as an equity analyst following the apparel, textile and
footwear industries.
Subra Ghose is manager of Environmental Services, which he has managed
since October 1998. Since joining Fidelity in 1995, Mr. Ghose has
worked as an analyst following the electric and gas utilities
industries. Prior to this, Mr. Ghose received a bachelor of science
degree in computer science from Birla Institute of Technology, India,
in 1991, and an MBA from Northeastern University in 1996.
Matthew Grech is manager of Electronics, which he has managed since
June 1998. Mr. Grech joined Fidelity in 1996 as an equity analyst,
after receiving his MBA from the University of Chicago. Previously, he
was a mutual fund accountant for Franklin/Templeton, in California,
from 1993 to 1994.
Albert Grosman is manager of Automotive, which he has managed since
December 1997. Mr. Grosman joined Fidelity in 1996 as an analyst. He
received his MBA from Columbia University in 1997. From 1993 to 1995,
Mr. Grosman managed investment portfolios on a discretionary basis in
Toronto, Canada.
Peter Hirsch is manager of Industrial Materials, which he has managed
since September 1998. Mr. Hirsch joined Fidelity in 1995 as a
portfolio analyst. He received his Masters in Public and Private
Management (MPPM) at Yale School of Management in 1994 and began his
career as an associate at CS First Boston in New York.
Brian Hogan is manager of Construction and Housing, which he has
managed since April 1999. Since joining Fidelity in 1994, Mr. Hogan
has worked as a fixed income analyst, research analyst and manager.
Previously, he worked as an analyst for Conseco Capital Management
from 1993 to 1994.
Andrew Kaplan is manager of Developing Communications and Technology,
which he has managed since April 1998 and July 1998, respectively.
Previously, he managed another Fidelity fund. Mr. Kaplan joined
Fidelity as an analyst in 1995. Before that, 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.
Rajiv Kaul is manager of Biotechnology, which he has managed since
June 1998. Since joining Fidelity in 1996, Mr. Kaul has worked as a
research associate and equity analyst. He received a bachelor of arts
degree in government from Harvard College in 1995.
Yolanda McGettigan is manager of Regional Banks, which she has managed
since April 1999. Ms. McGettigan joined Fidelity as an analyst in
1997, after receiving her MBA from the Fuqua School of Business at
Duke University. Previously, she was employed as a sales
representative for Robinson-Humphrey from 1994 to 1995 and a trader
for Cantor Fitzgerald from 1992 to 1994.
Kerry Nelson is manager of Medical Equipment and Systems, which she
has managed since April 1998. Since joining Fidelity in 1995, Ms.
Nelson has worked as a research associate, analyst and manager.
Previously, she was an analyst with Grandview Partners, L.P., in
Boston, from 1991 to 1994.
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.
Ted Orenstein is manager of Brokerage and Investment Management, which
he has managed since January 1999. Mr. Orenstein joined Fidelity as an
analyst in May 1998, after receiving a bachelor's degree in business
administration from Babson College in 1994 and an MBA from The Wharton
School at the University of Pennsylvania in 1998.
John Porter is manager of Software and Computer Services and Medical
Delivery, which he has managed since June 1997 and January 1998,
respectively. Previously, he managed another Fidelity fund. Mr. Porter
joined Fidelity as an analyst in 1995, after receiving his MBA from
the University of Chicago.
Lawrence Rakers is manager of Energy and Natural Resources, which he
has managed since January 1997 and March 1997, respectively. He also
manages another Fidelity fund. Mr. Rakers joined Fidelity as an
analyst in 1993.
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.
Peter Saperstone is manager of Telecommunications, which he has
managed since October 1998. Mr. Saperstone joined Fidelity in 1995 and
has worked as an analyst and manager.
Beso Sikharulidze is manager of Health Care, which he has managed
since June 1997. He also manages another Fidelity fund. Mr.
Sikharulidze joined Fidelity as an analyst in 1992, after receiving
his MBA from Harvard University.
Michael Tarlowe is manager of Business Services and Outsourcing
Portfolio, which he has managed since February 1998. Mr. Tarlowe
joined Fidelity in 1994 as an analyst, after receiving a bachelor of
business administration degree in finance from the University of
Michigan.
Michael Tempero is manager of Computers, which he has managed since
January 1997. He also manages another Fidelity fund. Mr. Tempero
joined Fidelity as an analyst in 1993, after receiving his MBA from
the University of Chicago.
Victor Thay is manager of Natural Gas and Home Finance, which he has
managed since December 1997 and March 1999, respectively. Mr. Thay
joined Fidelity as a research associate in 1995, after receiving
undergraduate degrees in political science and business administration
from the University of California at Berkeley in 1995.
Simon Wolf is manager of Industrial Equipment, which he has managed
since August 1997. Mr. Wolf joined Fidelity in 1996 as a research
associate. Previously, he worked for Salomon Brothers as an analyst
from 1993 to 1996. Mr. Wolf received a bachelor of science degree in
economics from the University of Pennsylvania in 1992.
Dylan Yolles is manager of Chemicals, which he has managed since
January 1999. Mr. Yolles joined Fidelity in 1997 as an equity analyst,
after receiving a bachelor of arts degree in 1991 and an MBA in 1997,
both from Stanford University.
Jonathan Zang is manager of Utilities Growth, which he has managed
since July 1998. Mr. Zang joined Fidelity in 1997 as an equity
analyst, after receiving his MBA from the University of Chicago in
1997. Previously, he was an investment officer with Hawaiian Trust
Company, in Honolulu, from 1992 to 1995.
Chris Zepf is Manager of Transportation and Air Transportation, which
he has managed since September 1998 and October 1998, respectively.
Mr. Zepf joined Fidelity in 1997 and has worked as an analyst and
manager.
Fidelity investment personnel may invest in securities for their own
investment accounts pursuant to a code of ethics that establishes
procedures for personal investing and restricts certain transactions.
Each fund pays a management fee to FMR.
The management fee is calculated and paid to FMR every month. For the
stock funds, the fee is calculated by adding a group fee rate to an
individual fund fee rate, dividing by twelve, and multiplying the
result by the fund's average net assets throughout the month.
For the money market fund, the fee is calculated by adding a group fee
rate to an individual fund fee rate, dividing by twelve and
multiplying the result by the fund's average net assets throughout the
month, and then adding an income-based fee.
The income-based fee is 6% of the fund's monthly gross income in
excess of an annualized 5% yield, but it cannot rise above an annual
rate of 0.24% of the fund's average net assets throughout that month.
The group fee rate is based on the average net assets of all the
mutual funds advised by FMR. This rate cannot rise above 0.52% for
each stock fund or 0.37% for the money market fund, and it drops as
total assets under management increase.
For February 1999, the group fee rate was 0.2843% for each stock fund
and the group fee rate was 0.1312% for the money market fund. The
individual fund fee rate is 0.30% for each stock fund and 0.03% for
the money market fund.
The total management fee for the fiscal year ended February 28, 1999
for each fund, as a percentage of each fund's average net assets, is
shown in the table below.
Fund Management Fees
Air Transportation 0.58%
Automotive 0.59%
Biotechnology 0.59%
Brokerage and Investment 0.59%
Management
Business Services and 0.59%
Outsourcing
Chemicals 0.59%
Computers 0.60%
Construction and Housing 0.59%
Consumer Industries 0.59%
Cyclical Industries 0.59%
Defense and Aerospace 0.58%
Developing Communications 0.60%
Electronics 0.59%
Energy 0.59%
Energy Service 0.59%
Environmental Services 0.59%
Financial Services 0.59%
Food and Agriculture 0.59%
Gold 0.59%
Health Care 0.59%
Home Finance 0.58%
Industrial Equipment 0.59%
Industrial Materials 0.59%
Insurance 0.59%
Leisure 0.59%
Medical Delivery 0.59%
Medical Equipment and SystemsA 0.60%
Multimedia 0.59%
2.Fund Management Fees
Natural Gas 0.59%
Natural Resources 0.59%
Paper and Forest Products 0.59%
Precious Metals and Minerals 0.59%
Regional Banks 0.59%
Retailing 0.59%
Software and Computer Services 0.59%
Technology 0.60%
Telecommunications 0.59%
Transportation 0.58%
Utilities Growth 0.59%
Money Market 0.20%
A ANNUALIZED
FMR pays FIMM, FMR U.K. and FMR Far East for providing assistance with
investment advisory services.
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 by FMR at any time, can decrease
a fund's expenses and boost its performance.
As of February 28, 1999, approximately 38.73% of Cyclical Industries'
total outstanding shares were held by an FMR affiliate.
FUND DISTRIBUTION
FDC distributes each fund's shares.
You may pay a sales charge when you buy your shares.
FDC collects the sales charge.
Each fund's sales charge may be reduced if you buy directly through
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. Purchases made
with assistance or intervention from a financial intermediary are not
eligible for a sales charge reduction.
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
FDC may pay a portion of sales charge proceeds to securities dealers
who have sold a 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.
The sales charge will also be reduced by the percentage of any sales
charge you previously paid on investments in other Fidelity funds or
by the percentage of 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, maintained a
Fidelity brokerage core account, or participated in The CORPORATEplan
for Retirement Program.
1. By exchange from another Fidelity fund.
2. With proceeds from a transaction in 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. As a participant in The CORPORATEplan for Retirement Program when
shares are bought through plan-qualified loan repayments, and for
exchanges into and out of the Managed Income Portfolio.
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. To shares in a Fidelity account bought 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 buy shares 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).
5. If you are an investor participating in the Fidelity Trust
Portfolios program.
6. To shares bought by a mutual fund or a qualified state tuition
program for which FMR or an affiliate serves as investment manager.
7. To shares bought 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 .
More detailed information about waivers (1), (2) and (5) is contained
in the Statement of Additional Information (SAI). A representative of
your plan or organization should call Fidelity for more information.
To qualify for a sales charge reduction or waiver, you must notify
Fidelity in advance of your purchase.
To receive sales concessions and waivers, qualified recipients must
sign the appropriate agreement with FDC in advance.
FMR may allocate brokerage transactions in a manner that takes into
account the sale of shares of a fund, provided that the fund receives
brokerage services and commission rates comparable to those of other
broker-dealers.
No dealer, sales representative, or any other person has been
authorized to give any information or to make any representations,
other than those contained in this Prospectus and in the related SAI,
in connection with the offer contained in this Prospectus. If given or
made, such other information or representations must not be relied
upon as having been authorized by the funds or FDC. This Prospectus
and the related SAI do not constitute an offer by the funds or by FDC
to sell shares of the funds or to buy shares of the funds to any
person to whom it is unlawful to make such offer.
APPENDIX
FINANCIAL HIGHLIGHTS
The financial highlights table is intended to help you understand each
fund's financial history for the past 5 years (past 2 years for
Business Services and Outsourcing, Cyclical Industries and Natural
Resources, and past year for Medical Equipment and Systems). Certain
information reflects financial results for a single fund share. Total
returns for each period include the reinvestment of all dividends and
distributions. This information has been audited by
PricewaterhouseCoopers LLP, independent accountants, whose report,
along with each fund's financial highlights and financial statements,
are included in the funds' Annual Report. A free copy of the Annual
Report is available upon request.
AIR TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 26.86 $ 17.72 $ 21.11 $ 13.93 $ 17.12
period
Income from Investment
Operations
Net investment income (loss) (.14) (.19) (.22) (.01) (.18)
C
Net realized and unrealized 1.06 10.59 (3.12) 7.47 (2.01)
gain (loss)
Total from investment .92 10.40 (3.34) 7.46 (2.19)
operations
Less Distributions
From net realized gain (.21) (1.43) (.07) (.46) (.92)
In excess of net realized - - (.20) - (.17)
gain
Total distributions (.21) (1.43) (.27) (.46) (1.09)
Redemption fees added to paid .19 .17 .22 .18 .09
in capital
Net asset value, end of period $ 27.76 $ 26.86 $ 17.72 $ 21.11 $ 13.93
TOTAL RETURN A, B 4.11% 61.10% (15.06)% 54.91% (12.45)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 65,949 $ 181,185 $ 35,958 $ 75,359 $ 18,633
(000 omitted)
Ratio of expenses to average 1.35% 1.93% 1.89% 1.47% 2.50% D
net assets
Ratio of expenses to average 1.27% E 1.87% E 1.80% E 1.41% E 2.50%
net assets after expense
reductions
Ratio of net investment (.50)% (.84)% (1.10)% (.07)% (1.31)%
income (loss) to average net
assets
Portfolio turnover rate 260% 294% 469% 504% 200%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D 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.
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 FOR THE YEAR ENDED FEBRUARY
29.
AUTOMOTIVE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 27.50 $ 25.38 $ 21.85 $ 19.84 $ 25.48
period
Income from Investment
Operations
Net investment income C .03 .05 .13 .03 .08
Net realized and unrealized (2.09) 5.21 4.28 1.95 (3.46)
gain (loss)
Total from investment (2.06) 5.26 4.41 1.98 (3.38)
operations
Less Distributions
From net investment income (.01) (.08) (.17) - (.05)
From net realized gain (2.17) (3.09) (.75) - (2.26)
Total distributions (2.18) (3.17) (.92) - (2.31)
Redemption fees added to paid .02 .03 .04 .03 .05
in capital
Net asset value, end of period $ 23.28 $ 27.50 $ 25.38 $ 21.85 $ 19.84
TOTAL RETURN A, B (8.52)% 22.78% 20.60% 10.13% (12.59)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 64,541 $ 32,489 $ 86,347 $ 55,753 $ 60,075
(000 omitted)
Ratio of expenses to average 1.45% 1.60% 1.56% 1.81% 1.82%
net assets
Ratio of expenses to average 1.41% D 1.56% D 1.52% D 1.80% D 1.80% D
net assets after expense
reductions
Ratio of net investment .11% .17% .54% .13% .34%
income to average net assets
Portfolio turnover rate 96% 153% 175% 61% 63%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
BIOTECHNOLOGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 34.52 $ 34.24 $ 36.60 $ 25.30 $ 27.61
period
Income from Investment
Operations
Net investment income (loss) (.26) (.27) (.20) .11 (.06)
C
Net realized and unrealized 9.15 5.20 1.89 11.21 (2.26)
gain (loss)
Total from investment 8.89 4.93 1.69 11.32 (2.32)
operations
Less Distributions
From net investment income - - (.03) (.07) -
From net realized gain (2.09) (4.71) (4.06) - -
Total distributions (2.09) (4.71) (4.09) (.07) -
Redemption fees added to paid .03 .06 .04 .05 .01
in capital
Net asset value, end of period $ 41.35 $ 34.52 $ 34.24 $ 36.60 $ 25.30
TOTAL RETURN A, B 27.13% 16.11% 5.85% 44.97% (8.37)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 741,530 $ 579,542 $ 674,902 $ 1,096,864 $ 448,197
(000 omitted)
Ratio of expenses to average 1.34% 1.49% 1.57% 1.44% D 1.59%
net assets
Ratio of expenses to average 1.30% E 1.47% E 1.56% E 1.43% E 1.59%
net assets after expense
reductions
Ratio of net investment (.75)% (.81)% (.59)% .35% (.27)%
income (loss) to average net
assets
Portfolio turnover rate 86% 162% 41% 67% 77%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
BROKERAGE AND INVESTMENT MANAGEMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 39.78 $ 25.76 $ 18.49 $ 15.51 $ 17.75
period
Income from Investment
Operations
Net investment income (loss) .10 .16 .08 .09 (.03)
C
Net realized and unrealized 1.72 14.46 7.80 4.29 (2.25)
gain (loss)
Total from investment 1.82 14.62 7.88 4.38 (2.28)
operations
Less Distributions
From net investment income (.01) (.09) (.06) (.04) -
From net realized gain (.52) (.61) (.65) (1.09) -
In excess of net realized - - - (.35) -
gain
Total distributions (.53) (.70) (.71) (1.48) -
Redemption fees added to paid .09 .10 .10 .08 .04
in capital
Net asset value, end of period $ 41.16 $ 39.78 $ 25.76 $ 18.49 $ 15.51
TOTAL RETURN A, B 4.76% 57.56% 44.27% 29.85% (12.62)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 482,525 $ 676,067 $ 458,787 $ 38,382 $ 27,346
(000 omitted)
Ratio of expenses to average 1.26% 1.33% 1.94% 1.64% D 2.54% D
net assets
Ratio of expenses to average 1.24% E 1.29% E 1.93% E 1.61% E 2.54%
net assets after expense
reductions
Ratio of net investment .26% .49% .37% .50% (.20)%
income (loss) to average net
assets
Portfolio turnover rate 59% 100% 16% 166% 139%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE .
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D 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.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
BUSINESS SERVICES AND OUTSOURCING
Years ended February 28, 1999 1998E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 10.89 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.11) -
D
Net realized and unrealized 2.92 .89
gain (loss)
Total from investment 2.81 .89
operations
Less Distributions
From net realized gain (.16) -
Redemption fees added to paid .03 -
in capital
Net asset value, end of period $ 13.57 $ 10.89
TOTAL RETURN B, C 26.23% 8.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 64,123 $ 15,915
(000 omitted)
Ratio of expenses to average 1.66% 2.50% A, F
net assets
Ratio of expenses to average 1.64% G 2.50% A
net assets after expense
reductions
Ratio of net investment (.91)% (.49)% A
income (loss) to average net
assets
Portfolio turnover rate 115% 36% A
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FOR THE PERIOD FEBRUARY 4,
1998 (COMMENCEMENT OF
OPERATIONS) TO FEBRUARY 28,
1998.
F FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
CHEMICALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 45.90 $ 42.53 $ 39.53 $ 33.91 $ 31.66
period
Income from Investment
Operations
Net investment income (loss) .17 (.02) .28 .01 .36
C
Net realized and unrealized (10.77) 7.88 5.49 8.89 2.65
gain (loss)
Total from investment (10.60) 7.86 5.77 8.90 3.01
operations
Less Distributions
From net investment income (.05) - (.12) (.08) (.22)
From net realized gain (3.52) (4.54) (2.74) (3.22) (.60)
In excess of net realized (0.68) - - - -
gain
Total distributions (4.25) (4.54) (2.86) (3.30) (.82)
Redemption fees added to paid .05 .05 .09 .02 .06
in capital
Net asset value, end of period $ 31.10 $ 45.90 $ 42.53 $ 39.53 $ 33.91
TOTAL RETURN A, B (23.66)% 19.47% 15.06% 27.48% 9.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 31,862 $ 69,349 $ 111,409 $ 89,230 $ 97,511
(000 omitted)
Ratio of expenses to average 1.58% 1.68% 1.83% 1.99% 1.52%
net assets
Ratio of expenses to average 1.51% D 1.67% D 1.81% D 1.97% D 1.51% D
net assets after expense
reductions
Ratio of net investment .44% (.05)% .67% .04% 1.07%
income (loss) to average net
assets
Portfolio turnover rate 141% 31% 207% 87% 106%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
COMPUTERS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 41.08 $ 48.25 $ 41.03 $ 30.67 $ 27.02
period
Income from Investment
Operations
Net investment income (loss) (.29) (.32) (.36) (.23) (.31)
C
Net realized and unrealized 27.39 6.42 9.94 16.10 3.68
gain (loss)
Total from investment 27.10 6.10 9.58 15.87 3.37
operations
Less Distributions
From net realized gain - (10.64) (2.47) (5.61) -
In excess of net realized - (2.75) - - -
gain
Total distributions - (13.39) (2.47) (5.61) -
Redemption fees added to paid .19 .12 .11 .10 .28
in capital
Net asset value, end of period $ 68.37 $ 41.08 $ 48.25 $ 41.03 $ 30.67
TOTAL RETURN A, B 66.43% 20.33% 23.97% 52.79% 13.51%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,831,435 $ 785,465 $ 604,286 $ 527,337 $ 215,014
(000 omitted)
Ratio of expenses to average 1.25% 1.40% 1.48% 1.40% 1.71%
net assets
Ratio of expenses to average 1.23% D 1.34% D 1.44% D 1.38% D 1.69% D
net assets after expense
reductions
Ratio of net investment (.54)% (.67)% (.83)% (.56)% (1.12)%
income (loss) to average net
assets
Portfolio turnover rate 133% 333% 255% 129% 189%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
CONSTRUCTION AND HOUSING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 25.63 $ 22.00 $ 19.56 $ 16.79 $ 19.82
period
Income from Investment
Operations
Net investment income (loss) (.06) (.25) .06 .07 (.02)
C
Net realized and unrealized (.53) 7.67 3.38 3.55 (2.50)
gain (loss)
Total from investment (.59) 7.42 3.44 3.62 (2.52)
operations
Less Distributions
From net investment income - (.02) (.02) (.07) -
From net realized gain (.06) (3.87) (1.03) (.81) (.52)
Total distributions (.06) (3.89) (1.05) (.88) (.52)
Redemption fees added to paid .04 .10 .05 .03 .01
in capital
Net asset value, end of period $ 25.02 $ 25.63 $ 22.00 $ 19.56 $ 16.79
TOTAL RETURN A, B (2.16)% 40.04% 18.64% 21.77% (12.54)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 51,652 $ 57,484 $ 30,581 $ 42,668 $ 16,863
(000 omitted)
Ratio of expenses to average 1.43% 2.50% D 1.41% 1.43% 1.76%
net assets
Ratio of expenses to average 1.37% E 2.43% E 1.35% E 1.40% E 1.74% E
net assets after expense
reductions
Ratio of net investment (.23)% (1.10)% .27% .39% (.11)%
income (loss) to average net
assets
Portfolio turnover rate 226% 404% 270% 139% 45%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSED DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
CONSUMER INDUSTRIES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 27.31 $ 20.66 $ 17.84 $ 13.91 $ 15.24
period
Income from Investment
Operations
Net investment income (loss) (.04) (.22) (.22) .08 (.15)
C
Net realized and unrealized 5.41 8.34 2.93 3.97 (.60)
gain (loss)
Total from investment 5.37 8.12 2.71 4.05 (.75)
operations
Less Distributions
From net investment income - - - (.02) -
From net realized gain (.90) (1.52) - (.01) (.60)
In excess of net realized - - - (.20) -
gain
Total distributions (.90) (1.52) - (.23) (.60)
Redemption fees added to paid .03 .05 .11 .11 .02
in capital
Net asset value, end of period $ 31.81 $ 27.31 $ 20.66 $ 17.84 $ 13.91
TOTAL RETURN A, B 20.18% 40.36% 15.81% 30.01% (4.59)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 82,244 $ 72,152 $ 18,392 $ 22,362 $ 20,501
(000 omitted)
Ratio of expenses to average 1.34% 2.01% 2.49% 1.53% D 2.49% D
net assets
Ratio of expenses to average 1.32% E 1.97% E 2.44% E 1.48% E 2.49%
net assets after expense
reductions
Ratio of net investment (.15)% (.90)% (1.13)% .46% (1.08)%
income (loss) to average net
assets
Portfolio turnover rate 150% 199% 340% 601% 190%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D 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.
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 FOR THE YEAR ENDED FEBRUARY
29.
CYCLICAL INDUSTRIES
Years ended February 28, 1999 1998 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 12.07 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.13) (.11)
D
Net realized and unrealized (.49) 2.59
gain (loss)
Total from investment (.62) 2.48
operations
Less Distributions
From net realized gain (.09) (.46)
Redemption fees added to .03 .05
paid in capital
Net asset value, end of $ 11.39 $ 12.07
period
TOTAL RETURN B, C (4.96)% 25.77%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,087 $ 3,965
(000 omitted)
Ratio of expenses to average 2.50% E 2.50% A, E
net assets
Ratio of expenses to average 2.49% G 2.50% A
net assets after expense
reductions
Ratio of net investment (1.09)% (.93)% A
income (loss) to average net
assets
Portfolio turnover rate 103% 140% A
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
F FOR THE PERIOD MARCH 3,
1997 (COMMENCEMENT OF
OPERATIONS) TO FEBRUARY 28,
1998.
G FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
DEFENSE AND AEROSPACE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 37.57 $ 28.94 $ 26.97 $ 19.64 $ 19.14
period
Income from Investment
Operations
Net investment income (loss) (.19) (.29) (.11) (.05) (.06)
D
Net realized and unrealized (3.61) 11.84 4.18 9.09 .70
gain (loss)
Total from investment (3.80) 11.55 4.07 9.04 .64
operations
Less Distributions
From net realized gain - (3.04) (2.17) (1.82) (.27)
Redemption fees added to paid .08 .12 .07 .11 .13
in capital
Net asset value, end of period $ 33.85 $ 37.57 $ 28.94 $ 26.97 $ 19.64
TOTAL RETURN A, B (9.90)% 42.68% 15.87% 47.40% 4.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 28,497 $ 101,805 $ 68,803 $ 26,648 $ 4,985
(000 omitted)
Ratio of expenses to average 1.48% 1.77% 1.84% 1.77% C 2.49% C
net assets
Ratio of expenses to average 1.42% E 1.71% E 1.81% E 1.75% E 2.49%
net assets after expense
reductions
Ratio of net investment (.53)% (.85)% (.39)% (.20)% (.32)%
income (loss) to average net
assets
Portfolio turnover rate 221% 311% 219% 267% 146%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C 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.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
F FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
DEVELOPING COMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 20.14 $ 19.68 $ 19.42 $ 20.40 $ 19.65
period
Income from Investment
Operations
Net investment income (loss) (.16) (.18) (.18) (.17) (.16)
C
Net realized and unrealized 12.72 4.95 .42 4.17 2.55
gain (loss)
Total from investment 12.56 4.77 .24 4.00 2.39
operations
Less Distributions
From net realized gain (.07) (4.35) - (5.00) (1.67)
Redemption fees added to paid .09 .04 .02 .02 .03
in capital
Net asset value, end of period $ 32.72 $ 20.14 $ 19.68 $ 19.42 $ 20.40
TOTAL RETURN A, B 63.01% 28.17% 1.34% 21.84% 13.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 612,061 $ 238,356 $ 220,360 $ 333,185 $ 254,426
(000 omitted)
Ratio of expenses to average 1.38% 1.61% 1.64% 1.53% 1.58%
net assets
Ratio of expenses to average 1.34% D 1.55% D 1.62% D 1.51% D 1.56% D
net assets after expense
reductions
Ratio of net investment (.64)% (.82)% (.86)% (.78)% (.83)%
income (loss) to average net
assets
Portfolio turnover rate 299% 383% 202% 249% 266%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
ELECTRONICS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 34.99 $ 37.95 $ 28.18 $ 19.80 $ 17.67
period
Income from Investment
Operations
Net investment income (loss) (.23) (.17) (.17) (.08) (.18)
C
Net realized and unrealized 12.53 7.32 9.80 13.51 2.11
gain (loss)
Total from investment 12.30 7.15 9.63 13.43 1.93
operations
Less Distributions
From net realized gain - (7.60) - (5.25) -
In excess of net realized - (2.60) - - -
gain
Total distributions - (10.20) - (5.25) -
Redemption fees added to paid .05 .09 .14 .20 .20
in capital
Net asset value, end of period $ 47.34 $ 34.99 $ 37.95 $ 28.18 $ 19.80
TOTAL RETURN A, B 35.30% 24.15% 34.67% 72.75% 12.05%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,885,548 $ 2,668,750 $ 1,744,017 $ 1,133,362 $ 216,433
(000 omitted)
Ratio of expenses to average 1.18% 1.18% 1.33% 1.25% 1.72%
net assets
Ratio of expenses to average 1.15% D 1.12% D 1.29% D 1.22% D 1.71% D
net assets after expense
reductions
Ratio of net investment (.62)% (.42)% (.54)% (.28)% (.98)%
income (loss) to average net
assets
Portfolio turnover rate 160% 435% 341% 366% 205%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
ENERGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 21.20 $ 21.31 $ 18.97 $ 16.10 $ 16.73
period
Income from Investment
Operations
Net investment income C .13 .11 .13 .18 .07
Net realized and unrealized (4.71) 3.93 3.59 3.13 (.11)
gain (loss)
Total from investment (4.58) 4.04 3.72 3.31 (.04)
operations
Less Distributions
From net investment income (.02) E (.09) (.13) (.11) (.08)
From net realized gain (.40)E (4.09) (1.31) (.36) (.54)
Total distributions (.42) (4.18) (1.44) (.47) (.62)
Redemption fees added to paid .03 .03 .06 .03 .03
in capital
Net asset value, end of period $ 16.23 $ 21.20 $ 21.31 $ 18.97 $ 16.10
TOTAL RETURN A, B (22.00)% 20.40% 20.35% 20.92% .04%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 120,004 $ 147,023 $ 203,265 $ 119,676 $ 96,023
(000 omitted)
Ratio of expenses to average 1.46% 1.58% 1.57% 1.63% 1.85%
net assets
Ratio of expenses to average 1.42% D 1.53% D 1.55% D 1.63% 1.85%
net assets after expense
reductions
Ratio of net investment .68% .47% .62% 1.04% .42%
income to average net assets
Portfolio turnover rate 138% 115% 87% 97% 106%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
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 AMOUNTS SHOWN REFLECT SOME
RECLASSIFICATION RELATED TO
BOOK TO TAX DIFFERENCES.
F FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
ENERGY SERVICE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 28.02 $ 20.46 $ 16.09 $ 11.97 $ 11.66
period
Income from Investment
Operations
Net investment income (loss) (.10) (.10) (.01) .08 D .02
C
Net realized and unrealized (13.26) 9.36 5.05 4.49 .67
gain (loss)
Total from investment (13.36) 9.26 5.04 4.57 .69
operations
Less Distributions
From net investment income - - - (.04) (.01)
In excess of net investment - - - - (.01)
income
From net realized gain (1.71) (1.85) (.79) (.48) (.35)
In excess of net realized - - - - (.13)
gain
Total distributions (1.71) (1.85) (.79) (.52) (.50)
Redemption fees added to paid .14 .15 .12 .07 .12
in capital
Net asset value, end of period $ 13.09 $ 28.02 $ 20.46 $ 16.09 $ 11.97
TOTAL RETURN A, B (50.57)% 48.43% 32.26% 39.15% 7.60%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 366,896 $ 919,002 $ 439,504 $ 273,805 $ 63,794
(000 omitted)
Ratio of expenses to average 1.39% 1.25% 1.47% 1.59% 1.81%
net assets
Ratio of expenses to average 1.35% E 1.22% E 1.45% E 1.58% E 1.79% E
net assets after expense
reductions
Ratio of net investment (.49)% (.35)% (.07)% .60% .19%
income (loss) to average net
assets
Portfolio turnover rate 75% 78% 167% 223% 209%
</TABLE>
A THE TOTALS RETURN WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.02 PER
SHARE.
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 FOR THE YEAR ENDED FEBRUARY
29.
ENVIRONMENTAL SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.46 $ 14.50 $ 12.42 $ 10.27 $ 11.93
period
Income from Investment
Operations
Net investment income (loss) (.18) (.13) (.08) (.17) (.14)
c
Net realized and unrealized (3.50) 2.07 2.04 2.95 (1.53)
gain (loss)
Total from investment (3.68) 1.94 1.96 2.78 (1.67)
operations
Less Distributions
From net realized gain - - - (.65) -
In excess of net realized (.03) - (.02) - -
gain
Total distributions (.03) - (.02) (.65) -
Redemption fees added to paid .02 .02 .14 .02 .01
in capital
Net asset value, end of period $ 12.77 $ 16.46 $ 14.50 $ 12.42 $ 10.27
TOTAL RETURN A, b (22.23)% 13.52% 16.93% 27.49% (13.91)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 15,534 $ 25,183 $ 32,525 $ 27,587 $ 31,270
(000 omitted)
Ratio of expenses to average 2.20% 2.23% 2.18% 2.36% 2.04%
net assets
Ratio of expenses to average 2.16% d 2.22% d 2.11% d 2.32% d 2.01% d
net assets after expense
reductions
Ratio of net investment (1.23)% (.84)% (.59)% (1.43)% (1.32)%
income (loss) to average net
assets
Portfolio turnover rate 123% 59% 252% 138% 82%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
FINANCIAL SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 103.28 $ 82.94 $ 65.70 $ 48.23 $ 51.24
period
Income from Investment
Operations
Net investment income C .56 .70 .74 1.03 .76
Net realized and unrealized 7.88 30.65 21.55 17.56 .87
gain (loss)
Total from investment 8.44 31.35 22.29 18.59 1.63
operations
Less Distributions
From net investment income (.19) (.64) (.63) (.37) (.79)
From net realized gain (10.81) (10.51) (4.56) (.91) (3.93)
Total distributions (11.00) (11.15) (5.19) (1.28) (4.72)
Redemption fees added to paid .10 .14 .14 .16 .08
in capital
Net asset value, end of period $ 100.82 $ 103.28 $ 82.94 $ 65.70 $ 48.23
TOTAL RETURN A, B 8.42% 41.08% 35.54% 39.05% 4.72%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 547,000 $ 604,908 $ 426,424 $ 270,466 $ 153,089
(000 omitted)
Ratio of expenses to average 1.20% 1.31% 1.45% 1.42% 1.56%
net assets
Ratio of expenses to average 1.18% D 1.29% D 1.43% D 1.41% D 1.54% D
net assets after expense
reductions
Ratio of net investment .58% .78% 1.03% 1.78% 1.52%
income to average net assets
Portfolio turnover rate 60% 84% 80% 125% 107%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
FOOD AND AGRICULTURE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 48.81 $ 44.53 $ 42.15 $ 32.53 $ 31.49
period
Income from Investment
Operations
Net investment income C .21 .33 .42 .37 .15
Net realized and unrealized 3.50 9.22 4.91 11.61 2.80
gain (loss)
Total from investment 3.71 9.55 5.33 11.98 2.95
operations
Less Distributions
From net investment income (.16) (.37) (.24) (.20) (.08)
From net realized gain (5.47) (4.95) (2.77) (2.20) (1.85)
Total distributions (5.63) (5.32) (3.01) (2.40) (1.93)
Redemption fees added to paid .03 .05 .06 .04 .02
in capital
Net asset value, end of period $ 46.92 $ 48.81 $ 44.53 $ 42.15 $ 32.53
TOTAL RETURN A, B 7.83% 23.58% 13.59% 37.92% 10.14%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 206,007 $ 250,567 $ 223,423 $ 301,102 $ 197,130
(000 omitted)
Ratio of expenses to average 1.31% 1.49% 1.52% 1.43% 1.70%
net assets
Ratio of expenses to average 1.29% D 1.48% D 1.50% D 1.42% D 1.68% D
net assets after expense
reductions
Ratio of net investment .45% .73% 1.01% .99% .49%
income to average net assets
Portfolio turnover rate 68% 74% 91% 124% 126%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
GOLD
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 15.17 $ 28.21 $ 27.11 $ 18.44 $ 22.66
period
Income from Investment
Operations
Net investment income (loss) (.08) (.13) (.16) (.06) (.05)
C
Net realized and unrealized (2.43) (11.78) 1.60 8.62 (4.25)
gain (loss)
Total from investment (2.51) (11.91) 1.44 8.56 (4.30)
operations
Less Distributions
From net realized gain - (1.29) (.50) - -
Redemption fees added to paid .13 .16 .16 .11 .08
in capital
Net asset value, end of period $ 12.79 $ 15.17 $ 28.21 $ 27.11 $ 18.44
TOTAL RETURN A, B (15.69)% (43.15)% 6.10% 47.02% (18.62)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 179,619 $ 219,668 $ 428,103 $ 451,493 $ 278,197
(000 omitted)
Ratio of expenses to average 1.57% 1.55% 1.44% 1.39% 1.41%
net assets
Ratio of expenses to average 1.54% D 1.48% D 1.42% D 1.39% 1.41%
net assets after expense
reductions
Ratio of net investment (.59)% (.67)% (.59)% (.27)% (.22)%
income (loss) to average net
assets
Portfolio turnover rate 59% 89% 63% 56% 34%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
HEALTH CARE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 113.84 $ 102.45 $ 100.47 $ 76.13 $ 63.31
period
Income from Investment
Operations
Net investment income C .17 .33 .52 .95 .75
Net realized and unrealized 29.85 31.94 18.01 28.85 18.38
gain (loss)
Total from investment 30.02 32.27 18.53 29.80 19.13
operations
Less Distributions
From net investment income (.19) (.25) (.65) (.59) (.62)
From net realized gain (6.17) (20.73) (15.95) (4.92) (5.74)
Total distributions (6.36) (20.98) (16.60) (5.51) (6.36)
Redemption fees added to paid .10 .10 .05 .05 .05
in capital
Net asset value, end of period $ 137.60 $ 113.84 $ 102.45 $ 100.47 $ 76.13
TOTAL RETURN A, B 27.20% 36.47% 20.41% 39.68% 31.24%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,145,825 $ 2,224,019 $ 1,372,554 $ 1,525,910 $ 943,141
(000 omitted)
Ratio of expenses to average 1.07% 1.20% 1.33% 1.31% 1.39%
net assets
Ratio of expenses to average 1.05% D 1.18% D 1.32% D 1.30% D 1.36% D
net assets after expense
reductions
Ratio of net investment .14% .31% .52% 1.06% 1.08%
income to average net assets
Portfolio turnover rate 66% 79% 59% 54% 151%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
HOME FINANCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 53.36 $ 46.00 $ 33.30 $ 23.92 $ 25.03
period
Income from Investment
Operations
Net investment income c .28 .33 .53 .53 .20
Net realized and unrealized (10.16) 13.10 14.60 9.72 2.34
gain (loss)
Total from investment (9.88) 13.43 15.13 10.25 2.54
operations
Less Distributions
From net investment income (.07) (.29) (.32) (.19) (.12)
From net realized gain (1.38) (5.84) (2.16) (.73) (3.60)
Total distributions (1.45) (6.13) (2.48) (.92) (3.72)
Redemption fees added to paid .06 .06 .05 .05 .07
in capital
Net asset value, end of period $ 42.09 $ 53.36 $ 46.00 $ 33.30 $ 23.92
TOTAL RETURN a,b (19.12)% 32.39% 47.50% 43.24% 12.43%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 740,440 $ 1,668,610 $ 1,176,828 $ 617,035 $ 229,924
(000 omitted)
Ratio of expenses to average 1.19% 1.21% 1.38% 1.35% 1.47%
net assets
Ratio of expenses to average 1.18% d 1.19% d 1.34% d 1.32% d 1.45% d
net assets after expense
reductions
Ratio of net investment .57% .67% 1.41% 1.80% .80%
income to average net assets
Portfolio turnover rate 18% 54% 78% 81% 124%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
INDUSTRIAL EQUIPMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 25.91 $ 25.51 $ 25.11 $ 20.04 $ 20.61
period
Income from Investment
Operations
Net investment income (loss) (.04) (.08) .06 .04 .01
C
Net realized and unrealized .25 5.73 4.15 7.10 (.44)
gain (loss)
Total from investment .21 5.65 4.21 7.14 (.43)
operations
Less Distributions
From net investment income - (.02) (.04) (.05) (.01)
From net realized gain (.92) (5.26) (3.84) (2.05) (.16)
Total distributions (.92) (5.28) (3.88) (2.10) (.17)
Redemption fees added to paid .03 .03 .07 .03 .03
in capital
Net asset value, end of period $ 25.23 $ 25.91 $ 25.51 $ 25.11 $ 20.04
TOTAL RETURN A, B 1.00% 25.76% 18.25% 36.86% (1.93)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 31,573 $ 50,428 $ 102,882 $ 137,520 $ 109,968
(000 omitted)
Ratio of expenses to average 1.43% 1.67% 1.51% 1.54% 1.80%
net assets
Ratio of expenses to average 1.41% D 1.60% D 1.44% D 1.53% D 1.78% D
net assets after expense
reductions
Ratio of net investment (.16)% (.32)% .25% .19% .06%
income (loss) to average net
assets
Portfolio turnover rate 84% 115% 261% 115% 131%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
INDUSTRIAL MATERIALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 25.00 $ 27.66 $ 26.07 $ 23.13 $ 21.67
period
Income from Investment
Operations
Net investment income (loss) (.12) (.11) .06 .12 .17
C
Net realized and unrealized (4.60) 1.43 3.12 2.92 1.43
gain (loss)
Total from investment (4.72) 1.32 3.18 3.04 1.60
operations
Less Distributions
From net investment income - (.03) (.06) (.15) (.18)
From net realized gain - (4.00) (1.57) - -
Total distributions - (4.03) (1.63) (.15) (.18)
Redemption fees added to paid .04 .05 .04 .05 .04
in capital
Net asset value, end of period $ 20.32 $ 25.00 $ 27.66 $ 26.07 $ 23.13
TOTAL RETURN A, B (18.72)% 6.59% 12.69% 13.38% 7.65%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 11,162 $ 22,582 $ 66,462 $ 86,338 $ 183,454
(000 omitted)
Ratio of expenses to average 2.07% 1.98% 1.54% 1.64% 1.56%
net assets
Ratio of expenses to average 2.04% D 1.94% D 1.51% D 1.61% D 1.53% D
net assets after expense
reductions
Ratio of net investment (.52)% (.42)% .23% .49% .77%
income (loss) to average net
assets
Portfolio turnover rate 82% 118% 105% 138% 139%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE .
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
INSURANCE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 42.10 $ 32.62 $ 26.77 $ 21.31 $ 19.41
period
Income from Investment
Operations
Net investment income (loss) (.04) .01 .01 .06 .05
C
Net realized and unrealized 4.01 12.93 7.21 6.15 1.78
gain (loss)
Total from investment 3.97 12.94 7.22 6.21 1.83
operations
Less Distributions
From net investment income - - (.03) (.07) -
From net realized gain (3.98) (3.54) (1.45) (.72) -
Total distributions (3.98) (3.54) (1.48) (.79) -
Redemption fees added to paid .05 .08 .11 .04 .07
in capital
Net asset value, end of period $ 42.14 $ 42.10 $ 32.62 $ 26.77 $ 21.31
TOTAL RETURN A, B 9.84% 42.81% 28.28% 29.51% 9.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 82,879 $ 125,151 $ 42,367 $ 38,994 $ 21,838
(000 omitted)
Ratio of expenses to average 1.33% 1.45% 1.82% 1.77% 2.36%
net assets
Ratio of expenses to average 1.31% D 1.43% D 1.77% D 1.74% D 2.34% D
net assets after expense
reductions
Ratio of net investment (.10)% .02% .05% .26% .25%
income (loss) to average net
assets
Portfolio turnover rate 72% 157% 142% 164% 265%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
LEISURE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 62.30 $ 47.83 $ 46.17 $ 40.71 $ 45.30
period
Income from Investment
Operations
Net investment income (loss) (.27) (.25) (.06) E (.21) (.21)
C
Net realized and unrealized 22.78 21.10 4.47 10.97 (.48)
gain (loss)
Total from investment 22.51 20.85 4.41 10.76 (.69)
operations
Less Distributions
From net realized gain (3.44) (6.46) (2.83) (5.32) (3.93)
Redemption fees added to paid .07 .08 .08 .02 .03
in capital
Net asset value, end of period $ 81.44 $ 62.30 $ 47.83 $ 46.17 $ 40.71
TOTAL RETURN A, B 37.54% 47.29% 10.14% 27.61% (1.07)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 346,139 $ 257,199 $ 98,133 $ 85,013 $ 69,569
(000 omitted)
Ratio of expenses to average 1.26% 1.44% 1.56% 1.64% 1.64%
net assets
Ratio of expenses to average 1.24% D 1.39% D 1.54% D 1.63% D 1.62% D
net assets after expense
reductions
Ratio of net investment (.40)% (.46)% (.12)% (.46)% (.52)%
income (loss) to average net
assets
Portfolio turnover rate 107% 209% 127% 141% 103%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 INVESTMENT INCOME (LOSS)
PER SHARE REFLECTS A SPECIAL
DIVIDEND WHICH AMOUNTED TO
$.23 PER SHARE.
F FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
MEDICAL DELIVERY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 28.32 $ 28.29 $ 29.00 $ 23.18 $ 20.28
period
Income from Investment
Operations
Net investment income (loss) (.06) F (.24) (.23) (.03) .06
C
Net realized and unrealized (7.88) 5.45 2.92 7.72 3.74
gain (loss)
Total from investment (7.94) 5.21 2.69 7.69 3.80
operations
Less Distributions
From net investment income - - - - (.06)
From net realized gain (1.21) (5.23) (3.45) (1.91) (.89)
In excess of net realized (.13) - - - --
gain
Total distributions (1.34) (5.23) (3.45) (1.91) (.95)
Redemption fees added to paid .04 .05 .05 .04 .05
in capital
Net asset value, end of period $ 19.08 $ 28.32 $ 28.29 $ 29.00 $ 23.18
TOTAL RETURN A, B (29.47)% 21.97% 10.50% 34.15% 19.63%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 76,842 $ 155,542 $ 192,385 $ 295,489 $ 299,570
(000 omitted)
Ratio of expenses to average 1.40% 1.57% 1.57% 1.65% 1.48%
net assets
Ratio of expenses to average 1.37% d 1.53% d 1.53% d 1.62% d 1.45% d
net assets after expense
reductions
Ratio of net investment (.25)% (.88)% (.84)% (.13)% .29%
income (loss) to average net
assets
Portfolio turnover rate 67% 109% 78% 132% 123%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
F NET INVESTMENT INCOME
(LOSS) PER SHARE REFLECTS A
SPECIAL DIVIDEND FROM
VENCOR, INC., WHICH AMOUNTED
TO $.12 PER SHARE.
</TABLE>
MEDICAL EQUIPMENT AND SYSTEMS
Year ended February 28, 1999 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.11)
D
Net realized and unrealized 2.18
gain (loss)
Total from investment 2.07
operations
Redemption fees added to paid .03
in capital
Net asset value, end of period $ 12.10
TOTAL RETURN B, C 21.00%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 28,594
(000 omitted)
Ratio of expenses to average 2.39% A
net assets
Ratio of expenses to average 2.38% A, E
net assets after expense
reductions
Ratio of net investment (1.21)% A
income (loss) to average net
assets
Portfolio turnover rate 85% A
A ANNUALIZED
B THE TOTAL RETURN WOULD HAVE
BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIOD SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
F FOR THE PERIOD APRIL 28,
1998 (COMMENCEMENT OF
OPERATIONS) TO FEBRUARY 28,
1999.
MULTIMEDIA
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 33.58 $ 24.91 $ 27.18 $ 22.35 $ 23.87
period
Income from Investment
Operations
Net investment income (loss) (.19) (.17) .35 D .02 (.01)
C
Net realized and unrealized 11.85 10.30 (1.58) 7.00 1.67
gain (loss)
Total from investment 11.66 10.13 (1.23) 7.02 1.66
operations
Less Distributions
From net investment income - - - (.02) -
From net realized gain (2.19) (1.52) (1.07) (2.19) (3.21)
Total distributions (2.19) (1.52) (1.07) (2.21) (3.21)
Redemption fees added to paid .08 .06 .03 .02 .03
in capital
Net asset value, end of period $ 43.13 $ 33.58 $ 24.91 $ 27.18 $ 22.35
TOTAL RETURN A, B 36.68% 42.42% (4.52)% 31.98% 9.35%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 159,730 $ 115,485 $ 54,171 $ 94,970 $ 38,157
(000 omitted)
Ratio of expenses to average 1.35% 1.75% 1.60% 1.56% 2.05%
net assets
Ratio of expenses to average 1.33% E 1.71% E 1.56% E 1.54% E 2.03% E
net assets after expense
reductions
Ratio of net investment (.52)% (.59)% 1.33% .08% (.07)%
income (loss) to average net
assets
Portfolio turnover rate 109% 219% 99% 223% 107%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE .
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.49 PER
SHARE.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
NATURAL GAS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.22 $ 12.50 $ 11.36 $ 8.98 $ 9.48
period
Income from Investment
Operations
Net investment income (loss) .12 E (.05) (.06) .05 .03
C
Net realized and unrealized (2.68) 1.06 1.30 2.36 (.53)
gain (loss)
Total from investment (2.56) 1.01 1.24 2.41 (.50)
operations
Less Distributions
From net investment income (.10) - (.01) (.05) (.02)
From net realized gain - (.30) (.29) - -
In excess of net realized - (.03) - - -
gain
Total distributions (.10) (.33) (.30) (.05) (.02)
Redemption fees added to paid .03 .04 .20 .02 .02
in capital
Net asset value, end of period $ 10.59 $ 13.22 $ 12.50 $ 11.36 $ 8.98
TOTAL RETURN A, B (19.17)% 8.74% 12.45% 27.10% (5.06)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 36,828 $ 59,866 $ 81,566 $ 60,228 $ 79,894
(000 omitted)
Ratio of expenses to average 1.57% 1.82% 1.70% 1.68% 1.70%
net assets
Ratio of expenses to average 1.52% D 1.78% D 1.66% D 1.67% D 1.66% D
net assets after expense
reductions
Ratio of net investment .93% (.37)% (.46)% .46% .30%
income (loss) to average net
assets
Portfolio turnover rate 107% 118% 283% 79% 177%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 NET INVESTMENT INCOME PER
SHARE REFLECTS A SPECIAL
DIVIDEND FROM TRANSCANADA
PIPELINES LTD. WHICH
AMOUNTED TO $.10 PER SHARE.
F FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
NATURAL RESOURCES
Years ended February 28, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 10.46 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) (.05) (.09)
d
Net realized and unrealized (2.54) .76
gain (loss)
Total from investment (2.59) .67
operations
Less Distributions
From net realized gain - (.26)
Redemption fees added to paid .02 .05
in capital
Net asset value, end of period $ 7.89 $ 10.46
TOTAL RETURN B, C (24.57)% 7.30%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 5,134 $ 7,520
(000 omitted)
Ratio of expenses to average 2.50% F 2.50% A, F
net assets
Ratio of expenses to average 2.47% G 2.48% A, G
net assets after expense
reductions
Ratio of net investment (.54)% (.86)% A
income (loss) to average net
assets
Portfolio turnover rate 155% 165% A
A ANNUALIZED
B THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
C TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
D NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
E FOR THE PERIOD MARCH 3,
1997 (COMMENCEMENT OF
OPERATIONS) TO FEBRUARY 28,
1998.
F FMR AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
G FMR OR THE FUND HAS ENTERED
INTO VARYING ARRANGEMENTS
WITH THIRD PARTIES WHO
EITHER PAID OR REDUCED A
PORTION OF THE FUND'S
EXPENSES.
PAPER AND FOREST PRODUCTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 22.66 $ 21.63 $ 20.78 $ 21.14 $ 19.61
period
Income from Investment
Operations
Net investment income (loss) (.03) (.12) .01 .08 .01
C
Net realized and unrealized (3.87) 3.13 2.08 1.83 2.53
gain (loss)
Total from investment (3.90) 3.01 2.09 1.91 2.54
operations
Less Distributions
From net investment income - - (.03) (.08) -
In excess of net investment - (.04) (.07) - -
income
From net realized gain -- (2.07) (1.25) (2.27) (1.17)
In excess of net realized (.44) -- -- -- --
gain
Total distributions (.44) (2.11) (1.35) (2.35) (1.17)
Redemption fees added to paid .13 .13 .11 .08 .16
in capital
Net asset value, end of period $ 18.45 $ 22.66 $ 21.63 $ 20.78 $ 21.14
TOTAL RETURN A, B (17.01)% 15.53% 10.87% 9.18% 14.91%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 10,247 $ 31,384 $ 19,484 $ 27,270 $ 94,219
(000 omitted)
Ratio of expenses to average 2.30% 2.18% 2.19% 1.91% 1.88%
net assets
Ratio of expenses to average 2.21% D 2.15% D 2.16% D 1.90% D 1.87% D
net assets after expense
reductions
Ratio of net investment (.13)% (.50)% .04% .34% .05%
income (loss) to average net
assets
Portfolio turnover rate 338% 235% 180% 78% 209%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
PRECIOUS METALS AND MINERALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 10.28 $ 19.60 $ 20.96 $ 15.27 $ 16.62
period
Income from Investment
Operations
Net investment income (loss) (.01) (.04) (.01) .07 .17
C
Net realized and unrealized (1.27) (9.42) (1.42) 5.54 (1.42)
gain (loss)
Total from investment (1.28) (9.46) (1.43) 5.61 (1.25)
operations
Less Distributions
From net investment income - - (.04) (.06) (.18)
In excess of net investment - - (.01) - (.05)
income
Total distributions - - (.05) (.06) (.23)
Redemption fees added to paid .16 .14 .12 .14 .13
in capital
Net asset value, end of period $ 9.16 $ 10.28 $ 19.60 $ 20.96 $ 15.27
TOTAL RETURN A, B (10.89)% (47.55)% (6.26)% 37.74% (6.86)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 123,439 $ 165,960 $ 325,586 $ 467,196 $ 364,204
(000 omitted)
Ratio of expenses to average 1.78% 1.82% 1.62% 1.52% 1.46%
net assets
Ratio of expenses to average 1.74% D 1.76% D 1.61% D 1.52% 1.46%
net assets after expense
reductions
Ratio of net investment (.09)% (.26)% (.05)% .39% .99%
income (loss) to average net
assets
Portfolio turnover rate 53% 84% 54% 53% 43%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
REGIONAL BANKS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 43.18 $ 32.82 $ 24.37 $ 18.01 $ 17.99
period
Income from Investment
Operations
Net investment income C .39 .40 .37 .52 .37
Net realized and unrealized .91 11.41 9.70 6.78 .87
gain (loss)
Total from investment 1.30 11.81 10.07 7.30 1.24
operations
Less Distributions
From net investment income (.28) (.28) (.27) (.25) (.29)
From net realized gain (2.66) (1.23) (1.40) (.72) (.98)
Total distributions (2.94) (1.51) (1.67) (.97) (1.27)
Redemption fees added to paid .03 .06 .05 .03 .05
in capital
Net asset value, end of period $ 41.57 $ 43.18 $ 32.82 $ 24.37 $ 18.01
TOTAL RETURN A, B 3.10% 36.64% 43.33% 40.94% 7.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 925,829 $ 1,338,896 $ 837,952 $ 315,178 $ 164,603
(000 omitted)
Ratio of expenses to average 1.17% 1.25% 1.46% 1.41% 1.58%
net assets
Ratio of expenses to average 1.16% D 1.24% D 1.45% D 1.40% D 1.56% D
net assets after expense
reductions
Ratio of net investment .91% 1.07% 1.36% 2.42% 1.99%
income to average net assets
Portfolio turnover rate 22% 25% 43% 103% 106%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
RETAILING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 50.04 $ 33.25 $ 27.87 $ 23.91 $ 24.91
period
Income from Investment
Operations
Net investment income (loss) (.28) (.27) (.13) (.14) (.18)
C
Net realized and unrealized 18.27 17.14 5.49 4.07 (.96)
gain (loss)
Total from investment 17.99 16.87 5.36 3.93 (1.14)
operations
Less Distributions
From net realized gain (.39) (.51) (.08) - -
In excess of net realized (.30) -- -- - -
gain
Total distributions (.69) (.51) (.08) - -
Redemption fees added to paid .16 .43 .10 .03 .14
in capital
Net asset value, end of period $ 67.50 $ 50.04 $ 33.25 $ 27.87 $ 23.91
TOTAL RETURN A, B 36.66% 52.61% 19.59% 16.56% (4.01)%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 337,513 $ 192,861 $ 59,348 $ 44,051 $ 31,090
(000 omitted)
Ratio of expenses to average 1.25% 1.63% 1.45% 1.94% 2.07%
net assets
Ratio of expenses to average 1.22% D 1.55% D 1.39% D 1.92% D 1.96% D
net assets after expense
reductions
Ratio of net investment (.50)% (.67)% (.39)% (.53)% (.74)%
income (loss) to average net
assets
Portfolio turnover rate 165% 308% 278% 235% 481%
</TABLE>
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
SOFTWARE AND COMPUTER SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 44.26 $ 38.58 $ 36.20 $ 29.07 $ 28.89
period
Income from Investment
Operations
Net investment income (loss) (.39) (.33) (.25) (.19) (.26)
C
Net realized and unrealized 14.46 12.57 5.87 11.85 .67
gain (loss)
Total from investment 14.07 12.24 5.62 11.66 .41
operations
Less Distributions
From net realized gain (1.32) (6.61) (3.31) (4.60) (.33)
Redemption fees added to paid .08 .05 .07 .07 .10
in capital
Net asset value, end of period $ 57.09 $ 44.26 $ 38.58 $ 36.20 $ 29.07
TOTAL RETURN A, B 32.57% 35.50% 16.14% 40.17% 1.97%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 690,852 $ 503,367 $ 389,699 $ 337,633 $ 236,445
(000 omitted)
Ratio of expenses to average 1.28% 1.44% 1.54% 1.48% 1.52%
net assets
Ratio of expenses to average 1.27% D 1.42% D 1.51% D 1.47% D 1.50% D
net assets after expense
reductions
Ratio of net investment (.82)% (.81)% (.66)% (.54)% (1.01)%
income (loss) to average net
assets
Portfolio turnover rate 72% 145% 279% 183% 164%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
TECHNOLOGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 53.13 $ 57.70 $ 54.67 $ 42.05 $ 41.83
period
Income from Investment
Operations
Net investment income (loss) (.34) (.25) (.39) (.28) (.39)
C
Net realized and unrealized 29.79 11.29 6.95 20.83 1.95
gain (loss)
Total from investment 29.45 11.04 6.56 20.55 1.56
operations
Less Distributions
From net realized gain - (12.39) (3.68) (8.05) (1.50)
In excess of net realized - (3.30) - - -
gain
Total distributions - (15.69) (3.68) (8.05) (1.50)
Redemption fees added to paid .12 .08 .15 .12 .16
in capital
Net asset value, end of period $ 82.70 $ 53.13 $ 57.70 $ 54.67 $ 42.05
TOTAL RETURN A, B 55.66% 24.92% 12.64% 50.71% 4.61%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,367,148 $ 691,924 $ 478,444 $ 483,026 $ 229,761
(000 omitted)
Ratio of expenses to average 1.24% 1.38% 1.49% 1.40% 1.57%
net assets
Ratio of expenses to average 1.20% D 1.30% D 1.44% D 1.39% D 1.56% D
net assets after expense
reductions
Ratio of net investment (.54)% (.45)% (.72)% (.52)% (.98)%
income (loss) to average net
assets
Portfolio turnover rate 339% 556% 549% 112% 102%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE .
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
TELECOMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 F 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 53.37 $ 41.80 $ 44.87 $ 38.34 $ 37.10
period
Income from Investment
Operations
Net investment income (loss) (.06) (.25) .12 D .51 .29
C
Net realized and unrealized 11.43 18.20 2.92 9.15 2.54
gain (loss)
Total from investment 11.37 17.95 3.04 9.66 2.83
operations
Less Distributions
From net investment income - - (.16) (.39) (.33)
From net realized gain (2.96) (6.44) (5.98) (2.75) (1.27)
Total distributions (2.96) (6.44) (6.14) (3.14) (1.60)
Redemption fees added to paid .07 .06 .03 .01 .01
in capital
Net asset value, end of period $ 61.85 $ 53.37 $ 41.80 $ 44.87 $ 38.34
TOTAL RETURN A, B 22.21% 46.52% 7.85% 25.79% 7.98%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 824,175 $ 643,449 $ 388,535 $ 468,300 $ 369,476
(000 omitted)
Ratio of expenses to average 1.27% 1.51% 1.51% 1.52% 1.56%
net assets
Ratio of expenses to average 1.25% E 1.48% E 1.47% E 1.52% 1.55% E
net assets after expense
reductions
Ratio of net investment (.11)% (.53)% .27% 1.17% .77%
income (loss) to average net
assets
Portfolio turnover rate 150% 157% 175% 89% 107%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.07 PER
SHARE.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 G 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 28.34 $ 22.23 $ 21.92 $ 20.53 $ 21.67
period
Income from Investment
Operations
Net investment income (loss) (.18) (.02) (.13) (.09) D (.17)
C
Net realized and unrealized (.58) 8.85 1.06 2.60 1.17
gain (loss)
Total from investment (.76) 8.83 .93 2.51 1.00
operations
Less Distributions
From net realized gain (2.64) (2.80) (.71) (1.22) (2.19)
Redemption fees added to paid .10 .08 .09 .10 .05
in capital
Net asset value, end of period $ 25.04 $ 28.34 $ 22.23 $ 21.92 $ 20.53
TOTAL RETURN A, B (1.73)% 41.15% 4.67% 12.95% 5.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 19,855 $ 64,282 $ 8,890 $ 11,445 $ 12,704
(000 omitted)
Ratio of expenses to average 1.96% 1.58% 2.50% E 2.47% E 2.37%
net assets
Ratio of expenses to average 1.90% F 1.54% F 2.48% F 2.44% F 2.36% F
net assets after expense
reductions
Ratio of net investment (.68)% (.06)% (.58)% (.43)% (.83)%
income (loss) to average net
assets
Portfolio turnover rate 182% 210% 148% 175% 178%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
C NET INVESTMENT INCOME
(LOSS) PER SHARE HAS BEEN
CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING
THE PERIOD.
D INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND
WHICH AMOUNTED TO $.05 PER
SHARE.
E 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 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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
UTILITIES GROWTH
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 53.50 $ 45.97 $ 43.03 $ 34.88 $ 36.61
period
Income from Investment
Operations
Net investment income C .44 .54 .73 1.10 1.13
Net realized and unrealized 15.77 14.83 6.41 7.86 (1.17)
gain (loss)
Total from investment 16.21 15.37 7.14 8.96 (.04)
operations
Less Distributions
From net investment income (.25) (.58) (.70) (.84) (1.05)
From net realized gain (7.93) (7.30) (3.54) - (.67)
Total distributions (8.18) (7.88) (4.24) (.84) (1.72)
Redemption fees added to paid .05 .04 .04 .03 .03
in capital
Net asset value, end of period $ 61.58 $ 53.50 $ 45.97 $ 43.03 $ 34.88
TOTAL RETURN A, B 32.17% 36.20% 18.13% 25.82% .21%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 507,841 $ 401,927 $ 256,844 $ 266,768 $ 237,635
(000 omitted)
Ratio of expenses to average 1.18% 1.33% 1.47% 1.39% 1.43%
net assets
Ratio of expenses to average 1.16% D 1.30% D 1.46% D 1.38% D 1.42% D
net assets after expense
reductions
Ratio of net investment .77% 1.11% 1.73% 2.76% 3.24%
income to average net assets
Portfolio turnover rate 113% 78% 31% 65% 24%
A THE TOTAL RETURNS WOULD
HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE .
C NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
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 FOR THE YEAR ENDED FEBRUARY
29.
</TABLE>
MONEY MARKET
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 1999 1998 1997 1996C 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment .050 .051 .049 .054 .042
Operations Net interest
income
Less Distributions
From net interest income (.050) (.051) (.049) (.054) (.042)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A 5.08% 5.26% 5.02% 5.56% 4.28%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,126,174 $ 584,919 $ 848,168 $ 610,821 $ 573,144
(000 omitted)
Ratio of expenses to average .50% .56% .56% .59% .65%
net assets
Ratio of expenses to average .49% B .56% .56% .59% .65%
net assets after expense
reductions
Ratio of net interest income 5.03% 5.13% 4.92% 5.39% 4.19%
to average net assets
</TABLE>
A TOTAL RETURNS DO NOT
INCLUDE THE ONE TIME SALES
CHARGE.
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 YEAR ENDED FEBRUARY
29.
You can obtain additional information about the funds. The funds' SAI
includes more detailed information about each fund and its
investments. The SAI is incorporated herein by reference (legally
forms a part of the prospectus). Each fund's annual and semi-annual
reports include a discussion of the fund's holdings and recent market
conditions and the fund's investment strategies that affected
performance.
For a free copy of any of these documents or to request other
information or ask questions about a fund, call Fidelity at
1-800-544-8544 or visit Fidelity's Web site at www.fidelity.com.
The SAI, the funds' annual and semi-annual reports and other related
materials are available on the SEC's Internet Web site
(http://www.sec.gov). You can obtain copies of this information upon
paying a duplicating fee, by writing the Public Reference Section of
the SEC, Washington, D.C. 20549-6009. You can also review and copy
information about the funds, including the funds' SAI, at the SEC's
Public Reference Room in Washington, D.C. Call 1-800-SEC-0330 for
information on the operation of the SEC's Public Reference Room.
INVESTMENT COMPANY ACT OF 1940, FILE NUMBER 811-3114
Select Portfolios, Fidelity Investments & (Pyramid) Design, Fidelity,
Fidelity Investments, TouchTone Xpress, Fidelity Money Line, Fidelity
Automatic Account Builder, Fidelity On-Line Xpress+, and Directed
Dividends are registered trademarks of FMR Corp.
Portfolio Advisory Services is a service mark of FMR Corp.
The third party marks appearing above are the marks of their
respective owners.
1.701898.101 SEL-pro-0499
SUPPLEMENT TO THE FIDELITY SELECT
PORTFOLIOS(registered trademark) APRIL 29, 1999 PROSPECTUS
Effective the close of business on December 20, 1999, shares of Select
Precious Metals and Minerals Portfolio will no longer be available for
purchase except through the reinvestment of dividends and other
distributions by shareholders of the fund on December 20, 1999.
PROPOSED REORGANIZATION. The Board of Trustees of Fidelity Select
Portfolios has unanimously approved an Agreement and Plan of
Reorganization ("Agreement") between Select Precious Metals and
Minerals Portfolio and Select Gold Portfolio.
The Agreement provides for the transfer of all of the assets and the
assumption of all of the liabilities of Select Precious Metals and
Minerals Portfolio solely in exchange for the number of shares of
Select Gold Portfolio equal in value to the relative net asset value
of the outstanding shares of Select Precious Metals and Minerals
Portfolio. Following such exchange, Select Precious Metals and
Minerals Portfolio will distribute the Select Gold Portfolio shares to
its shareholders pro rata, in liquidation of Select Precious Metals
and Minerals Portfolio as provided in the Agreement (the transactions
contemplated by the Agreement referred to as the "Reorganization").
The Reorganization can be consummated only if, among other things, it
is approved by a majority vote of shareholders. A Special Meeting (the
"Meeting") of the Shareholders of Select Precious Metals and Minerals
Portfolio will be held on February 16, 2000, and approval of the
Agreement will be voted on at that time. In connection with the
Meeting, Select Precious Metals and Minerals Portfolio will be filing
with the Securities and Exchange Commission and delivering to its
shareholders of record a Proxy Statement describing the Reorganization
and a Prospectus for Select Gold Portfolio.
If the Agreement is approved at the Meeting and certain conditions
required by the Agreement are satisfied, the Reorganization is
expected to become effective on or about February 29, 2000. If
shareholder approval of the Agreement is delayed due to failure to
meet a quorum or otherwise, the Reorganization will become effective,
if approved, as soon as practicable thereafter.
In the event Select Precious Metals and Minerals Portfolio
shareholders fail to approve the Agreement, Select Precious Metals and
Minerals Portfolio will continue to engage in business as a registered
investment company and the Board of Trustees will consider other
proposals for the reorganization or liquidation of Select Precious
Metals and Minerals Portfolio.
REGIONAL BANKS PORTFOLIO HAS CHANGED ITS NAME TO "BANKING PORTFOLIO."
References in the Prospectus to "Regional Banks Portfolio" are each
hereby replaced by "Banking Portfolio" and references to "Regional
Banks" are each hereby replaced by "Banking."
The following information replaces similar information for "Banking
Portfolio" found in the "Fund Summary" section on page P-15:
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
The following information replaces similar information found under
the heading "Average Annual Returns" in the "Fund Summary" section on
page P-31:
The returns in the following table include the effect of each
fund's 3.00% maximum applicable front-end sales charge and each stock
fund's $7.50 redemption fee (trading fee).
The following information replaces the second paragraph for
"Environmental Services Portfolio" found under the heading "Principal
Investment Strategies" in the "Fund Basics" section beginning on page
P-46:
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development,
manufacture or distribution of products, processes, or services
related to waste management or pollution control. These companies may
include, for example, companies involved in the transportation,
treatment, or disposal of hazardous or other wastes; transforming
waste into energy; recycling; and remedial projects such as
groundwater and underground storage tank decontamination, asbestos
cleanup, and emergency cleanup response. They may also include
companies involved in the detection, analysis, evaluation, and
treatment of both existing and potential environmental problems such
as contaminated water, air pollution, and acid rain; companies that
provide sanitation or filtration equipment or services; companies
involved in the reduction of hazardous emissions or other pollution
reduction or prevention efforts; and companies that provide design,
engineering, construction, and consulting services to companies
engaged in waste management or pollution control.
The following information replaces the second paragraph for "Banking
Portfolio" found under the heading "Principal Investment Strategies"
in the "Fund Basics" section on page P-52:
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans. These
companies may include, for example, state chartered banks, savings and
loan institutions, banks that are members of the Federal Reserve
System, and U.S. institutions whose deposits are not insured by the
federal government. In addition, these companies may offer merchant
banking, consumer and commercial finance, discount brokerage, leasing
and insurance.
The following information replaces similar information found under the
heading "Fund Management" in the "Fund Services" section beginning on
page P-69:
Ramin Arani is an analyst and manager of Health Care, which he has
managed since August 1999. He also manages other Fidelity funds. Mr.
Arani joined Fidelity as a research associate in 1992.
Steven Calhoun is manager of Retailing, which he has managed since
August 1999. Mr. Calhoun joined Fidelity as a research analyst in
1994.
Matthew Fruhan is manager of Food and Agriculture, which he has
managed since November 1999. Mr. Fruhan joined Fidelity in 1995 and
became an equity analyst in 1999 after receiving his MBA from Harvard
Business School in 1999.
Ian Gutterman is manager of Environmental Services, which he has
managed since November 1999. Mr. Gutterman joined Fidelity as an
equity analyst in 1999 after receiving his MBA from the University of
Chicago.
Douglas Nigen is manager of Automotive, which he has managed since
September 1999. Mr. Nigen joined Fidelity as a research analyst in
1997 after receiving his MBA from the University of Chicago.
Scott Offen is manager of Energy and Natural Resources, both of which
he has managed since September 1999. He also manages another Fidelity
fund. Since joining Fidelity in 1985, Mr. Offen has worked as a
research analyst and portfolio manager.
Shep Perkins is an analyst and manager of Medical Delivery, which he
has managed since August 1999. Mr. Perkins joined Fidelity as an
equity research associate in 1997.
John Porter is manager of Consumer Industries, which he has managed
since September 1999. He also manages another Fidelity fund. Mr.
Porter joined Fidelity as an analyst in 1995, after receiving his MBA
from the University of Chicago.
John Roth is manager of Utilities Growth, which he has managed since
November 1999. Mr. Roth joined Fidelity as an equity analyst in 1999
after receiving his MBA from MIT Sloan School of Management in 1999.
Dylan Yolles is manager of Software and Computer Services, which he
has managed since September 1999. Mr. Yolles joined Fidelity in 1997
as an equity analyst, after receiving a bachelor of arts degree in
1991 and an MBA in 1997, both from Stanford University.
Jonathan Zang is manager of Chemicals, which he has managed since
September 1999. Mr. Zang joined Fidelity in 1997 as an equity analyst,
after receiving his MBA from the University of Chicago in 1997.
Previously, he was an investment officer with Hawaiian Trust Company,
in Honolulu, from 1992 to 1995.
Christian Zann is an analyst and manager of Natural Gas, which he has
managed since August 1999. Mr. Zann joined Fidelity as an equity
research associate in 1996.
The following information replaces the fourth paragraph found under
the heading "Fund Distribution" in the "Fund Services" section on page
P-71:
Each stock fund's sales charge may be reduced if you buy directly
through 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.
Purchases made with assistance or intervention from a financial
intermediary are not eligible for a sales charge reduction.
