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(REGISTERED TRADEMARK)
SELECT
PORTFOLIOS(REGISTERED TRADEMARK)
FUND TRADING
NUMBER SYMBOL
AIR TRANSPORTATION PORTFOLIO 034 FSAIX
AUTOMOTIVE PORTFOLIO 502 FSAVX
BANKING PORTFOLIO 507 FSRBX
BIOTECHNOLOGY PORTFOLIO 042 FBIOX
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO 068 FSLBX
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO 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 FCYIX
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 FNARX
PAPER AND FOREST PRODUCTS PORTFOLIO 506 FSPFX
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, 2000
(FIDELITY_LOGO_GRAPHIC)(registered trademark)
82 DEVONSHIRE STREET, BOSTON, MA 02109
CONTENTS
FUND SUMMARY 2 INVESTMENT SUMMARY
19 PERFORMANCE
45 FEE TABLE
FUND BASICS 61 INVESTMENT DETAILS
74 VALUING SHARES
SHAREHOLDER INFORMATION 75 BUYING AND SELLING SHARES
82 EXCHANGING SHARES
82 ACCOUNT FEATURES AND POLICIES
86 DIVIDENDS AND CAPITAL GAIN
DISTRIBUTIONS
86 TAX CONSEQUENCES
FUND SERVICES 87 FUND MANAGEMENT
90 FUND DISTRIBUTION
APPENDIX 91 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) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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, labor relations, 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
AUTOMOTIVE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
BANKING PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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.
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 from the U.S. market.
(small solid bullet) BANKING INDUSTRY CONCENTRATION. The banking
industry can be significantly affected by legislation that has reduced
the separation between commercial and investment banking businesses,
changed the laws governing capitalization requirements and the savings
and loan industry, and increased competition. In addition, the banking
industry can be significantly affected 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 from
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
BIOTECHNOLOGY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO seeks capital
appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO seeks capital
appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
CHEMICALS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from the U.S. market.
(small solid bullet) CHEMICAL INDUSTRY CONCENTRATION. The chemical
industry can be significantly affected by intense competition, product
obsolescence, raw materials prices, 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
COMPUTERS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
CONSTRUCTION AND HOUSING PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
CONSUMER INDUSTRIES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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
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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
CYCLICAL INDUSTRIES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
DEFENSE AND AEROSPACE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
DEVELOPING COMMUNICATIONS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ELECTRONICS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ENERGY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ENERGY SERVICE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
ENVIRONMENTAL SERVICES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
FINANCIAL SERVICES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from the U.S. market.
(small solid bullet) FINANCIAL SERVICES INDUSTRY CONCENTRATION. The
financial services industries are subject to extensive government
regulation, can be subject to 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 from
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
FOOD AND AGRICULTURE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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, competitive pricing, 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
GOLD PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally 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) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
HEALTH CARE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from the U.S. market.
(small solid bullet) HEALTH CARE INDUSTRY CONCENTRATION. The health
care industries are subject to government regulation and reimbursement
rates, as well as government approval of products and services, which
could have a significant effect on price and availability, and can be
significantly affected by rapid obsolescence and patent expirations.
(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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
HOME FINANCE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
the value of the market as a whole. The value of securities of smaller
issuers can be more volatile than that of larger issuers.
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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
INDUSTRIAL EQUIPMENT PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
INDUSTRIAL MATERIALS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
INSURANCE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
LEISURE PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
MEDICAL DELIVERY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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, pricing pressure, 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
MULTIMEDIA PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
NATURAL GAS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
NATURAL RESOURCES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally 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) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
PAPER AND FOREST PRODUCTS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
RETAILING PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
SOFTWARE AND COMPUTER SERVICES PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
TECHNOLOGY PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
TELECOMMUNICATIONS PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
TRANSPORTATION PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the fund, they could be worth more or
less than what you paid for them.
INVESTMENT OBJECTIVE
UTILITIES GROWTH PORTFOLIO seeks capital appreciation.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Normally investing primarily in common stocks.
(small solid bullet) Normally 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 from 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 from
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, the fund 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 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.
When you sell your shares of the 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 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 effect 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 each fund's
performance from year to year and compares each stock fund's
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.
YEAR-BY-YEAR RETURNS
The returns in the charts do not include the effect of each fund's
front-end sales charge. If the effect of the sales charge were
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 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-18.18% 37.06% 6.57% 30.89% -21.74% 59.54% 1.25% 31.14% 6.42% 34.49%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -18.18
Row: 2, Col: 1, Value: 37.06
Row: 3, Col: 1, Value: 6.57
Row: 4, Col: 1, Value: 30.89
Row: 5, Col: 1, Value: -21.74
Row: 6, Col: 1, Value: 59.54
Row: 7, Col: 1, Value: 1.25
Row: 8, Col: 1, Value: 31.14
Row: 9, Col: 1, Value: 6.42
Row: 10, Col: 1, Value: 34.49
DURING THE PERIODS SHOWN IN THE CHART FOR AIR TRANSPORTATION, THE
HIGHEST RETURN FOR A QUARTER WAS 23.90% (QUARTER ENDED MARCH 31, 1991)
AND THE LOWEST RETURN FOR A QUARTER WAS -26.72% (QUARTER ENDED
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR AIR TRANSPORTATION
WAS 4.45%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
AUTOMOTIVE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-6.72% 37.33% 41.61% 35.38% -12.75% 13.43% 16.07% 16.78% 4.94% -13.47%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -6.72
Row: 2, Col: 1, Value: 37.33
Row: 3, Col: 1, Value: 41.61
Row: 4, Col: 1, Value: 35.38
Row: 5, Col: 1, Value: -12.75
Row: 6, Col: 1, Value: 13.43
Row: 7, Col: 1, Value: 16.07
Row: 8, Col: 1, Value: 16.78
Row: 9, Col: 1, Value: 4.94
Row: 10, Col: 1, Value: -13.47
DURING THE PERIODS SHOWN IN THE CHART FOR AUTOMOTIVE, THE HIGHEST
RETURN FOR A QUARTER WAS 24.59% (QUARTER ENDED MARCH 31, 1992) AND THE
LOWEST RETURN FOR A QUARTER WAS -22.31% (QUARTER ENDED SEPTEMBER 30,
1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR AUTOMOTIVE WAS 5.17%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BANKING
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-20.67% 65.79% 48.52% 11.17% 0.22% 46.77% 35.89% 45.56% 11.85% -10.07%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -20.67
Row: 2, Col: 1, Value: 65.79000000000001
Row: 3, Col: 1, Value: 48.52
Row: 4, Col: 1, Value: 11.17
Row: 5, Col: 1, Value: 0.22
Row: 6, Col: 1, Value: 46.77
Row: 7, Col: 1, Value: 35.89
Row: 8, Col: 1, Value: 45.56
Row: 9, Col: 1, Value: 11.85
Row: 10, Col: 1, Value: -10.07
DURING THE PERIODS SHOWN IN THE CHART FOR BANKING, THE HIGHEST RETURN
FOR A QUARTER WAS 22.20% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST
RETURN FOR A QUARTER WAS -25.20% (QUARTER ENDED SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BANKING WAS -3.59%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BIOTECHNOLOGY
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
44.35% 99.05% -10.34% 0.70% -18.18% 49.10% 5.61% 15.27% 29.72% 77.77%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 44.34999999999999
Row: 2, Col: 1, Value: 99.05
Row: 3, Col: 1, Value: -10.34
Row: 4, Col: 1, Value: 0.7000000000000001
Row: 5, Col: 1, Value: -18.18
Row: 6, Col: 1, Value: 49.1
Row: 7, Col: 1, Value: 5.609999999999999
Row: 8, Col: 1, Value: 15.27
Row: 9, Col: 1, Value: 29.72
Row: 10, Col: 1, Value: 77.77
DURING THE PERIODS SHOWN IN THE CHART FOR BIOTECHNOLOGY, THE HIGHEST
RETURN FOR A QUARTER WAS 40.70% (QUARTER ENDED DECEMBER 31, 1999) AND
THE LOWEST RETURN FOR A QUARTER WAS -19.25% (QUARTER ENDED MARCH 31,
1993).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BIOTECHNOLOGY WAS
12.66%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
BROKERAGE AND INVESTMENT
MANAGEMENT
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-16.18% 82.26% 5.12% 49.33% -17.27% 23.59% 39.66% 62.32% 5.67% 30.65%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -16.18
Row: 2, Col: 1, Value: 82.26000000000001
Row: 3, Col: 1, Value: 5.119999999999999
Row: 4, Col: 1, Value: 49.33
Row: 5, Col: 1, Value: -17.27
Row: 6, Col: 1, Value: 23.59
Row: 7, Col: 1, Value: 39.66
Row: 8, Col: 1, Value: 62.32
Row: 9, Col: 1, Value: 5.67
Row: 10, Col: 1, Value: 30.65
DURING THE PERIODS SHOWN IN THE CHART FOR BROKERAGE AND INVESTMENT
MANAGEMENT, THE HIGHEST RETURN FOR A QUARTER WAS 31.28% (QUARTER ENDED
MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -33.12%
(QUARTER ENDED SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BROKERAGE AND
INVESTMENT MANAGEMENT WAS 14.84%.
BUSINESS SERVICES AND
OUTSOURCING
Calendar Year 1999
29.39%
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: 29.39
DURING THE PERIOD SHOWN IN THE CHART FOR BUSINESS SERVICES AND
OUTSOURCING, THE HIGHEST RETURN FOR A QUARTER WAS 20.62% (QUARTER
ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS
- -6.99% (QUARTER ENDED SEPTEMBER 30, 1999).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BUSINESS SERVICES AND
OUTSOURCING WAS -10.70%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CHEMICALS
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-4.13% 38.66% 8.90% 12.76% 14.78% 21.45% 21.52% 16.48% -15.90% 19.19%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -4.13
Row: 2, Col: 1, Value: 38.66
Row: 3, Col: 1, Value: 8.9
Row: 4, Col: 1, Value: 12.76
Row: 5, Col: 1, Value: 14.78
Row: 6, Col: 1, Value: 21.45
Row: 7, Col: 1, Value: 21.52
Row: 8, Col: 1, Value: 16.48
Row: 9, Col: 1, Value: -15.9
Row: 10, Col: 1, Value: 19.19
DURING THE PERIODS SHOWN IN THE CHART FOR CHEMICALS, THE HIGHEST
RETURN FOR A QUARTER WAS 17.65% (QUARTER ENDED MARCH 31, 1991) AND THE
LOWEST RETURN FOR A QUARTER WAS -19.95% (QUARTER ENDED SEPTEMBER 30,
1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CHEMICALS WAS -2.95%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
COMPUTERS
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
18.41% 30.75% 21.96% 28.87% 20.45% 51.83% 31.62% 0.10% 96.37% 81.10%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 18.41
Row: 2, Col: 1, Value: 30.75
Row: 3, Col: 1, Value: 21.96
Row: 4, Col: 1, Value: 28.87
Row: 5, Col: 1, Value: 20.45
Row: 6, Col: 1, Value: 51.83
Row: 7, Col: 1, Value: 31.62
Row: 8, Col: 1, Value: 0.1
Row: 9, Col: 1, Value: 96.36999999999999
Row: 10, Col: 1, Value: 81.09999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR COMPUTERS, THE HIGHEST
RETURN FOR A QUARTER WAS 41.69% (QUARTER ENDED DECEMBER 31, 1999) AND
THE LOWEST RETURN FOR A QUARTER WAS -27.00% (QUARTER ENDED SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR COMPUTERS WAS 24.38%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
CONSTRUCTION AND HOUSING
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-9.64% 41.31% 18.71% 33.61% -15.94% 28.78% 13.21% 29.83% 22.84% -12.45%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -9.639999999999999
Row: 2, Col: 1, Value: 41.31
Row: 3, Col: 1, Value: 18.71
Row: 4, Col: 1, Value: 33.61
Row: 5, Col: 1, Value: -15.94
Row: 6, Col: 1, Value: 28.78
Row: 7, Col: 1, Value: 13.21
Row: 8, Col: 1, Value: 29.83
Row: 9, Col: 1, Value: 22.84
Row: 10, Col: 1, Value: -12.45
DURING THE PERIODS SHOWN IN THE CHART FOR CONSTRUCTION AND HOUSING,
THE HIGHEST RETURN FOR A QUARTER WAS 29.68% (QUARTER ENDED DECEMBER
31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -25.81% (QUARTER
ENDED SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CONSTRUCTION AND
HOUSING WAS -4.51%.
<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 1999
38.53% 8.56% 24.67% -7.07% 28.30% 13.15% 38.06% 27.49% 10.14%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 38.53
Row: 3, Col: 1, Value: 8.560000000000001
Row: 4, Col: 1, Value: 24.67
Row: 5, Col: 1, Value: -7.07
Row: 6, Col: 1, Value: 28.3
Row: 7, Col: 1, Value: 13.15
Row: 8, Col: 1, Value: 38.06
Row: 9, Col: 1, Value: 27.49
Row: 10, Col: 1, Value: 10.14
DURING THE PERIODS SHOWN IN THE CHART FOR CONSUMER INDUSTRIES, THE
HIGHEST RETURN FOR A QUARTER WAS 27.07% (QUARTER ENDED DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -15.37% (QUARTER ENDED
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CONSUMER INDUSTRIES
WAS -7.41%.
CYCLICAL INDUSTRIES
Calendar Years 1998 1999
8.77% 13.05%
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: 8.77
Row: 10, Col: 1, Value: 13.05
DURING THE PERIODS SHOWN IN THE CHART FOR CYCLICAL INDUSTRIES, THE
HIGHEST RETURN FOR A QUARTER WAS 17.39% (QUARTER ENDED DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -19.87% (QUARTER ENDED
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CYCLICAL INDUSTRIES
WAS -1.49%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
DEFENSE AND AEROSPACE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-4.58% 26.93% 0.00% 28.86% 1.76% 47.36% 25.03% 23.57% 4.34% 11.83%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -4.58
Row: 2, Col: 1, Value: 26.93
Row: 3, Col: 1, Value: 0.0
Row: 4, Col: 1, Value: 28.86
Row: 5, Col: 1, Value: 1.76
Row: 6, Col: 1, Value: 47.36
Row: 7, Col: 1, Value: 25.03
Row: 8, Col: 1, Value: 23.57
Row: 9, Col: 1, Value: 4.34
Row: 10, Col: 1, Value: 11.83
DURING THE PERIODS SHOWN IN THE CHART FOR DEFENSE AND AEROSPACE, THE
HIGHEST RETURN FOR A QUARTER WAS 23.08% (QUARTER ENDED SEPTEMBER 30,
1997) AND THE LOWEST RETURN FOR A QUARTER WAS -18.25% (QUARTER ENDED
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR DEFENSE AND AEROSPACE
WAS 4.42%.
<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 1999
61.39% 17.21% 31.77% 15.14% 17.37% 14.55% 6.04% 67.68% 122.50%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: 61.39
Row: 3, Col: 1, Value: 17.21
Row: 4, Col: 1, Value: 31.77
Row: 5, Col: 1, Value: 15.14
Row: 6, Col: 1, Value: 17.37
Row: 7, Col: 1, Value: 14.55
Row: 8, Col: 1, Value: 6.04
Row: 9, Col: 1, Value: 67.67999999999999
Row: 10, Col: 1, Value: 122.5
DURING THE PERIODS SHOWN IN THE CHART FOR DEVELOPING COMMUNICATIONS,
THE HIGHEST RETURN FOR A QUARTER WAS 63.51%(QUARTER ENDED DECEMBER 31,
1999) AND THE LOWEST RETURN FOR A QUARTER WAS -15.48% (QUARTER ENDED
MARCH 31, 1997).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR DEVELOPING
COMMUNICATIONS WAS 26.81%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ELECTRONICS
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
5.81% 35.29% 27.44% 32.08% 17.17% 68.97% 41.72% 13.72% 51.12% 106.68%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 5.81
Row: 2, Col: 1, Value: 35.29000000000001
Row: 3, Col: 1, Value: 27.44
Row: 4, Col: 1, Value: 32.08
Row: 5, Col: 1, Value: 17.17
Row: 6, Col: 1, Value: 68.97
Row: 7, Col: 1, Value: 41.72000000000001
Row: 8, Col: 1, Value: 13.72
Row: 9, Col: 1, Value: 51.12000000000001
Row: 10, Col: 1, Value: 106.68
DURING THE PERIODS SHOWN IN THE CHART FOR ELECTRONICS, THE HIGHEST
RETURN FOR A QUARTER WAS 56.77% (QUARTER ENDED DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -31.76% (QUARTER ENDED SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ELECTRONICS WAS
42.11%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ENERGY
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-4.49% 0.04% -2.39% 19.15% 0.41% 21.38% 32.47% 10.28% -14.74% 34.23%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -4.49
Row: 2, Col: 1, Value: 0.04000000000000001
Row: 3, Col: 1, Value: -2.39
Row: 4, Col: 1, Value: 19.15
Row: 5, Col: 1, Value: 0.41
Row: 6, Col: 1, Value: 21.38
Row: 7, Col: 1, Value: 32.47
Row: 8, Col: 1, Value: 10.28
Row: 9, Col: 1, Value: -14.74
Row: 10, Col: 1, Value: 34.23
DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY, THE HIGHEST RETURN
FOR A QUARTER WAS 20.65% (QUARTER ENDED JUNE 30, 1999) AND THE LOWEST
RETURN FOR A QUARTER WAS -11.75% (QUARTER ENDED SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ENERGY WAS 14.99%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ENERGY SERVICE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
1.75% -23.48% 3.43% 20.96% 0.57% 40.87% 49.08% 51.87% -49.72% 72.15%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 1.75
Row: 2, Col: 1, Value: -23.48
Row: 3, Col: 1, Value: 3.43
Row: 4, Col: 1, Value: 20.96
Row: 5, Col: 1, Value: 0.5700000000000001
Row: 6, Col: 1, Value: 40.87
Row: 7, Col: 1, Value: 49.08
Row: 8, Col: 1, Value: 51.87
Row: 9, Col: 1, Value: -49.72000000000001
Row: 10, Col: 1, Value: 72.14999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY SERVICE, THE HIGHEST
RETURN FOR A QUARTER WAS 36.86% (QUARTER ENDED SEPTEMBER 30, 1997) AND
THE LOWEST RETURN FOR A QUARTER WAS -34.78% (QUARTER ENDED SEPTEMBER
30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ENERGY SERVICE WAS
35.97%.
<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 1999
-2.48% 7.66% -1.37% -0.62% -9.55% 26.13% 15.61% 17.87% -16.96% -25.85%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -2.48
Row: 2, Col: 1, Value: 7.659999999999999
Row: 3, Col: 1, Value: -1.37
Row: 4, Col: 1, Value: -0.6200000000000001
Row: 5, Col: 1, Value: -9.550000000000001
Row: 6, Col: 1, Value: 26.13
Row: 7, Col: 1, Value: 15.61
Row: 8, Col: 1, Value: 17.87
Row: 9, Col: 1, Value: -16.96
Row: 10, Col: 1, Value: -25.85
DURING THE PERIODS SHOWN IN THE CHART FOR ENVIRONMENTAL SERVICES, THE
HIGHEST RETURN FOR A QUARTER WAS 21.53% (QUARTER ENDED JUNE 30, 1999)
AND THE LOWEST RETURN FOR A QUARTER WAS -30.60% (QUARTER ENDED
SEPTEMBER 30, 1999).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ENVIRONMENTAL
SERVICES WAS -0.49%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL SERVICES
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-24.33% 61.63% 42.82% 17.55% -3.65% 47.34% 32.12% 41.98% 14.13% 1.56%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -24.33
Row: 2, Col: 1, Value: 61.63
Row: 3, Col: 1, Value: 42.82
Row: 4, Col: 1, Value: 17.55
Row: 5, Col: 1, Value: -3.65
Row: 6, Col: 1, Value: 47.34
Row: 7, Col: 1, Value: 32.12000000000001
Row: 8, Col: 1, Value: 41.98
Row: 9, Col: 1, Value: 14.13
Row: 10, Col: 1, Value: 1.56
DURING THE PERIODS SHOWN IN THE CHART FOR FINANCIAL SERVICES, THE
HIGHEST RETURN FOR A QUARTER WAS 27.43% (QUARTER ENDED MARCH 31, 1991)
AND THE LOWEST RETURN FOR A QUARTER WAS -29.89% (QUARTER ENDED
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR FINANCIAL SERVICES
WAS -0.50%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
FOOD AND AGRICULTURE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
9.33% 34.09% 6.03% 8.82% 6.09% 36.64% 13.35% 30.34% 15.69% -20.47%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 9.33
Row: 2, Col: 1, Value: 34.09
Row: 3, Col: 1, Value: 6.03
Row: 4, Col: 1, Value: 8.82
Row: 5, Col: 1, Value: 6.09
Row: 6, Col: 1, Value: 36.64
Row: 7, Col: 1, Value: 13.35
Row: 8, Col: 1, Value: 30.34
Row: 9, Col: 1, Value: 15.69
Row: 10, Col: 1, Value: -20.47
DURING THE PERIODS SHOWN IN THE CHART FOR FOOD AND AGRICULTURE, THE
HIGHEST RETURN FOR A QUARTER WAS 16.88% (QUARTER ENDED DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -10.29% (QUARTER ENDED
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR FOOD AND AGRICULTURE
WAS -4.79%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
GOLD
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-17.20% -6.14% -3.09% 78.68% -15.46% 11.20% 19.92% -39.39% -8.64% 8.36%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -17.2
Row: 2, Col: 1, Value: -6.14
Row: 3, Col: 1, Value: -3.09
Row: 4, Col: 1, Value: 78.67999999999999
Row: 5, Col: 1, Value: -15.46
Row: 6, Col: 1, Value: 11.2
Row: 7, Col: 1, Value: 19.92
Row: 8, Col: 1, Value: -39.39
Row: 9, Col: 1, Value: -8.639999999999999
Row: 10, Col: 1, Value: 8.360000000000001
DURING THE PERIODS SHOWN IN THE CHART FOR GOLD, THE HIGHEST RETURN FOR
A QUARTER WAS 32.47% (QUARTER ENDED JUNE 30, 1993) AND THE LOWEST
RETURN FOR A QUARTER WAS -32.11% (QUARTER ENDED DECEMBER 31, 1997).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR GOLD WAS -15.56%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HEALTH CARE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
24.32% 83.69% -17.43% 2.42% 21.46% 45.86% 15.46% 31.15% 41.28% -2.88%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 24.32
Row: 2, Col: 1, Value: 83.69
Row: 3, Col: 1, Value: -17.43
Row: 4, Col: 1, Value: 2.42
Row: 5, Col: 1, Value: 21.46
Row: 6, Col: 1, Value: 45.86
Row: 7, Col: 1, Value: 15.46
Row: 8, Col: 1, Value: 31.15
Row: 9, Col: 1, Value: 41.28
Row: 10, Col: 1, Value: -2.88
DURING THE PERIODS SHOWN IN THE CHART FOR HEALTH CARE, THE HIGHEST
RETURN FOR A QUARTER WAS 34.45% (QUARTER ENDED MARCH 31, 1991) AND THE
LOWEST RETURN FOR A QUARTER WAS -13.15% (QUARTER ENDED MARCH 31,
1992).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR HEALTH CARE WAS
3.29%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
HOME FINANCE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-15.08% 64.61% 57.85% 27.29% 2.68% 53.49% 36.88% 45.75% -14.81% -12.37%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -15.08
Row: 2, Col: 1, Value: 64.61
Row: 3, Col: 1, Value: 57.84999999999999
Row: 4, Col: 1, Value: 27.29
Row: 5, Col: 1, Value: 2.68
Row: 6, Col: 1, Value: 53.49
Row: 7, Col: 1, Value: 36.88
Row: 8, Col: 1, Value: 45.75
Row: 9, Col: 1, Value: -14.81
Row: 10, Col: 1, Value: -12.37
DURING THE PERIODS SHOWN IN THE CHART FOR HOME FINANCE, THE HIGHEST
RETURN FOR A QUARTER WAS 30.19% (QUARTER ENDED MARCH 31, 1991) AND THE
LOWEST RETURN FOR A QUARTER WAS -25.76% (QUARTER ENDED SEPTEMBER 30,
1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR HOME FINANCE WAS
- -5.34%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INDUSTRIAL EQUIPMENT
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-15.51% 26.84% 11.34% 43.33% 3.13% 27.81% 26.71% 18.55% 12.67% 17.39%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -15.51
Row: 2, Col: 1, Value: 26.84
Row: 3, Col: 1, Value: 11.34
Row: 4, Col: 1, Value: 43.33
Row: 5, Col: 1, Value: 3.13
Row: 6, Col: 1, Value: 27.81
Row: 7, Col: 1, Value: 26.71
Row: 8, Col: 1, Value: 18.55
Row: 9, Col: 1, Value: 12.67
Row: 10, Col: 1, Value: 17.39
DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL EQUIPMENT, THE
HIGHEST RETURN FOR A QUARTER WAS 20.08% (QUARTER ENDED MARCH 31, 1991)
AND THE LOWEST RETURN FOR A QUARTER WAS -29.18% (QUARTER ENDED
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR INDUSTRIAL EQUIPMENT
WAS 5.35%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INDUSTRIAL MATERIALS
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-17.17% 35.81% 12.37% 21.38% 8.19% 15.39% 14.01% 1.75% -11.02% 16.48%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -17.17
Row: 2, Col: 1, Value: 35.81
Row: 3, Col: 1, Value: 12.37
Row: 4, Col: 1, Value: 21.38
Row: 5, Col: 1, Value: 8.19
Row: 6, Col: 1, Value: 15.39
Row: 7, Col: 1, Value: 14.01
Row: 8, Col: 1, Value: 1.75
Row: 9, Col: 1, Value: -11.02
Row: 10, Col: 1, Value: 16.48
DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL MATERIALS, THE
HIGHEST RETURN FOR A QUARTER WAS 16.65% (QUARTER ENDED JUNE 30, 1999)
AND THE LOWEST RETURN FOR A QUARTER WAS -21.26% (QUARTER ENDED
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR INDUSTRIAL MATERIALS
WAS -11.35%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INSURANCE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-9.81% 36.68% 22.50% 8.18% -0.35% 34.81% 23.71% 42.47% 20.32% -5.95%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -9.810000000000001
Row: 2, Col: 1, Value: 36.68
Row: 3, Col: 1, Value: 22.5
Row: 4, Col: 1, Value: 8.18
Row: 5, Col: 1, Value: -0.35
Row: 6, Col: 1, Value: 34.81
Row: 7, Col: 1, Value: 23.71
Row: 8, Col: 1, Value: 42.47
Row: 9, Col: 1, Value: 20.32
Row: 10, Col: 1, Value: -5.95
DURING THE PERIODS SHOWN IN THE CHART FOR INSURANCE, THE HIGHEST
RETURN FOR A QUARTER WAS 23.68% (QUARTER ENDED MARCH 31, 1991) AND THE
LOWEST RETURN FOR A QUARTER WAS -19.37% (QUARTER ENDED SEPTEMBER 30,
1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR INSURANCE WAS -0.67%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
LEISURE
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-22.29% 32.94% 16.23% 39.55% -6.84% 26.96% 13.41% 41.29% 37.92% 32.83%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -22.29
Row: 2, Col: 1, Value: 32.94
Row: 3, Col: 1, Value: 16.23
Row: 4, Col: 1, Value: 39.55
Row: 5, Col: 1, Value: -6.84
Row: 6, Col: 1, Value: 26.96
Row: 7, Col: 1, Value: 13.41
Row: 8, Col: 1, Value: 41.29000000000001
Row: 9, Col: 1, Value: 37.92
Row: 10, Col: 1, Value: 32.83
DURING THE PERIODS SHOWN IN THE CHART FOR LEISURE, THE HIGHEST RETURN
FOR A QUARTER WAS 32.19% (QUARTER ENDED DECEMBER 31, 1998) AND THE
LOWEST RETURN FOR A QUARTER WAS -22.70% (QUARTER ENDED SEPTEMBER 30,
1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR LEISURE WAS -1.65%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MEDICAL DELIVERY
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
16.26% 77.83% -13.19% 5.52% 19.84% 32.18% 11.00% 20.14% -6.16% -29.59%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 16.26
Row: 2, Col: 1, Value: 77.83
Row: 3, Col: 1, Value: -13.19
Row: 4, Col: 1, Value: 5.52
Row: 5, Col: 1, Value: 19.84
Row: 6, Col: 1, Value: 32.18
Row: 7, Col: 1, Value: 11.0
Row: 8, Col: 1, Value: 20.14
Row: 9, Col: 1, Value: -6.159999999999999
Row: 10, Col: 1, Value: -29.59
DURING THE PERIODS SHOWN IN THE CHART FOR MEDICAL DELIVERY, THE
HIGHEST RETURN FOR A QUARTER WAS 41.61% (QUARTER ENDED MARCH 31, 1991)
AND THE LOWEST RETURN FOR A QUARTER WAS -26.26% (QUARTER ENDED
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MEDICAL DELIVERY WAS
- -6.33%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MEDICAL EQUIPMENT AND SYSTEMS
Calendar Year 1999
10.72%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: nil
Row: 2, Col: 1, Value: nil
Row: 3, Col: 1, Value: nil
Row: 4, Col: 1, Value: nil
Row: 5, Col: 1, Value: nil
Row: 6, Col: 1, Value: nil
Row: 7, Col: 1, Value: nil
Row: 8, Col: 1, Value: nil
Row: 9, Col: 1, Value: nil
Row: 10, Col: 1, Value: 10.72
DURING THE PERIOD SHOWN IN THE CHART FOR MEDICAL EQUIPMENT AND
SYSTEMS, THE HIGHEST RETURN FOR A QUARTER WAS 11.16% (QUARTER ENDED
DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -6.54%
(QUARTER ENDED SEPTEMBER 30, 1999).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MEDICAL EQUIPMENT AND
SYSTEMS WAS 13.57%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MULTIMEDIA
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-26.21% 37.85% 21.50% 38.02% 4.00% 33.67% 1.07% 30.93% 35.69% 44.14%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -26.21
Row: 2, Col: 1, Value: 37.84999999999999
Row: 3, Col: 1, Value: 21.5
Row: 4, Col: 1, Value: 38.02
Row: 5, Col: 1, Value: 4.0
Row: 6, Col: 1, Value: 33.67
Row: 7, Col: 1, Value: 1.07
Row: 8, Col: 1, Value: 30.93
Row: 9, Col: 1, Value: 35.69000000000001
Row: 10, Col: 1, Value: 44.14
DURING THE PERIODS SHOWN IN THE CHART FOR MULTIMEDIA, THE HIGHEST
RETURN FOR A QUARTER WAS 27.35% (QUARTER ENDED DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -24.82% (QUARTER ENDED SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MULTIMEDIA WAS
- -0.02%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
NATURAL GAS
Calendar Years 1994 1995 1996 1997 1998 1999
-6.84% 30.38% 34.32% -8.06% -12.40% 26.19%
</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: -6.84
Row: 6, Col: 1, Value: 30.38
Row: 7, Col: 1, Value: 34.32
Row: 8, Col: 1, Value: -8.060000000000001
Row: 9, Col: 1, Value: -12.4
Row: 10, Col: 1, Value: 26.19
DURING THE PERIODS SHOWN IN THE CHART FOR NATURAL GAS, THE HIGHEST
RETURN FOR A QUARTER WAS 19.83% (QUARTER ENDED JUNE 30, 1999) AND THE
LOWEST RETURN FOR A QUARTER WAS -16.04% (QUARTER ENDED MARCH 31,
1997).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR NATURAL GAS WAS
22.38%.
NATURAL RESOURCES
Calendar Years 1998 1999
-16.57% 38.80%
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: -16.57
Row: 10, Col: 1, Value: 38.8
DURING THE PERIODS SHOWN IN THE CHART FOR NATURAL RESOURCES, THE
HIGHEST RETURN FOR A QUARTER WAS 19.96% (QUARTER ENDED JUNE 30, 1999)
AND THE LOWEST RETURN FOR A QUARTER WAS -11.34% (QUARTER ENDED
SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR NATURAL RESOURCES WAS
12.31%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
PAPER AND FOREST PRODUCTS
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-15.11% 34.77% 12.05% 18.55% 14.14% 21.91% 7.07% 9.35% -7.89% 30.51%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -15.11
Row: 2, Col: 1, Value: 34.77
Row: 3, Col: 1, Value: 12.05
Row: 4, Col: 1, Value: 18.55
Row: 5, Col: 1, Value: 14.14
Row: 6, Col: 1, Value: 21.91
Row: 7, Col: 1, Value: 7.07
Row: 8, Col: 1, Value: 9.350000000000001
Row: 9, Col: 1, Value: -7.89
Row: 10, Col: 1, Value: 30.51
DURING THE PERIODS SHOWN IN THE CHART FOR PAPER AND FOREST PRODUCTS,
THE HIGHEST RETURN FOR A QUARTER WAS 22.74% (QUARTER ENDED SEPTEMBER
30, 1994) AND THE LOWEST RETURN FOR A QUARTER WAS -21.04% (QUARTER
ENDED SEPTEMBER 30, 1998).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR PAPER AND FOREST
PRODUCTS WAS -3.88%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
RETAILING
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-5.03% 68.13% 22.08% 13.03% -5.01% 11.98% 20.86% 41.73% 45.76% 5.20%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -5.03
Row: 2, Col: 1, Value: 68.13
Row: 3, Col: 1, Value: 22.08
Row: 4, Col: 1, Value: 13.03
Row: 5, Col: 1, Value: -5.01
Row: 6, Col: 1, Value: 11.98
Row: 7, Col: 1, Value: 20.86
Row: 8, Col: 1, Value: 41.73
Row: 9, Col: 1, Value: 45.76000000000001
Row: 10, Col: 1, Value: 5.2
DURING THE PERIODS SHOWN IN THE CHART FOR RETAILING, THE HIGHEST
RETURN FOR A QUARTER WAS 34.78% (QUARTER ENDED DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -27.05% (QUARTER ENDED SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR RETAILING WAS 0.48%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
SOFTWARE AND COMPUTER SERVICES
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
0.86% 45.84% 35.54% 32.73% 0.39% 46.26% 21.77% 15.01% 45.77% 93.12%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 0.8600000000000001
Row: 2, Col: 1, Value: 45.84
Row: 3, Col: 1, Value: 35.54
Row: 4, Col: 1, Value: 32.73
Row: 5, Col: 1, Value: 0.3900000000000001
Row: 6, Col: 1, Value: 46.26000000000001
Row: 7, Col: 1, Value: 21.77
Row: 8, Col: 1, Value: 15.01
Row: 9, Col: 1, Value: 45.77
Row: 10, Col: 1, Value: 93.11999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR SOFTWARE AND COMPUTER
SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 57.10% (QUARTER ENDED
DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -30.81%
(QUARTER ENDED SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR SOFTWARE AND COMPUTER
SERVICES WAS 4.95%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TECHNOLOGY
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
10.50% 58.97% 8.72% 28.65% 11.13% 43.81% 15.82% 10.33% 74.16% 131.75%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 10.5
Row: 2, Col: 1, Value: 58.97
Row: 3, Col: 1, Value: 8.719999999999999
Row: 4, Col: 1, Value: 28.65
Row: 5, Col: 1, Value: 11.13
Row: 6, Col: 1, Value: 43.81
Row: 7, Col: 1, Value: 15.82
Row: 8, Col: 1, Value: 10.33
Row: 9, Col: 1, Value: 74.16
Row: 10, Col: 1, Value: 131.75
DURING THE PERIODS SHOWN IN THE CHART FOR TECHNOLOGY, THE HIGHEST
RETURN FOR A QUARTER WAS 62.10% (QUARTER ENDED DECEMBER 31, 1999) AND
THE LOWEST RETURN FOR A QUARTER WAS -25.19% (QUARTER ENDED SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR TECHNOLOGY WAS
25.29%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TELECOMMUNICATIONS
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-16.40% 30.85% 15.32% 29.72% 4.32% 29.66% 5.40% 25.83% 41.04% 66.60%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -16.4
Row: 2, Col: 1, Value: 30.85
Row: 3, Col: 1, Value: 15.32
Row: 4, Col: 1, Value: 29.72
Row: 5, Col: 1, Value: 4.319999999999999
Row: 6, Col: 1, Value: 29.66
Row: 7, Col: 1, Value: 5.4
Row: 8, Col: 1, Value: 25.83
Row: 9, Col: 1, Value: 41.04
Row: 10, Col: 1, Value: 66.59999999999999
DURING THE PERIODS SHOWN IN THE CHART FOR TELECOMMUNICATIONS, THE
HIGHEST RETURN FOR A QUARTER WAS 36.02% (QUARTER ENDED DECEMBER 31,
1999) AND THE LOWEST RETURN FOR A QUARTER WAS -21.14% (QUARTER ENDED
SEPTEMBER 30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR TELECOMMUNICATIONS
WAS 16.82%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
TRANSPORTATION
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
-21.59% 54.14% 23.79% 29.32% 3.87% 15.17% 9.50% 32.13% -4.34% 27.69%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: -21.59
Row: 2, Col: 1, Value: 54.14
Row: 3, Col: 1, Value: 23.79
Row: 4, Col: 1, Value: 29.32
Row: 5, Col: 1, Value: 3.87
Row: 6, Col: 1, Value: 15.17
Row: 7, Col: 1, Value: 9.5
Row: 8, Col: 1, Value: 32.13
Row: 9, Col: 1, Value: -4.34
Row: 10, Col: 1, Value: 27.69
DURING THE PERIODS SHOWN IN THE CHART FOR TRANSPORTATION, THE HIGHEST
RETURN FOR A QUARTER WAS 19.76% (QUARTER ENDED DECEMBER 31, 1998) AND
THE LOWEST RETURN FOR A QUARTER WAS -25.91% (QUARTER ENDED SEPTEMBER
30, 1990).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR TRANSPORTATION WAS
- -2.51%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
UTILITIES GROWTH
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
0.55% 21.03% 10.59% 12.54% -7.41% 34.39% 11.37% 30.31% 43.16% 25.92%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 0.55
Row: 2, Col: 1, Value: 21.03
Row: 3, Col: 1, Value: 10.59
Row: 4, Col: 1, Value: 12.54
Row: 5, Col: 1, Value: -7.41
Row: 6, Col: 1, Value: 34.39
Row: 7, Col: 1, Value: 11.37
Row: 8, Col: 1, Value: 30.31
Row: 9, Col: 1, Value: 43.16
Row: 10, Col: 1, Value: 25.92
DURING THE PERIODS SHOWN IN THE CHART FOR UTILITIES GROWTH, THE
HIGHEST RETURN FOR A QUARTER WAS 23.01% (QUARTER ENDED DECEMBER 31,
1998) AND THE LOWEST RETURN FOR A QUARTER WAS -6.17% (QUARTER ENDED
DECEMBER 31, 1993).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR UTILITIES GROWTH WAS
12.81%.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
MONEY MARKET
Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999
7.79% 5.80% 3.52% 2.69% 3.74% 5.66% 5.06% 5.20% 5.20% 4.91%
</TABLE>
Percentage (%)
Row: 1, Col: 1, Value: 7.79
Row: 2, Col: 1, Value: 5.8
Row: 3, Col: 1, Value: 3.52
Row: 4, Col: 1, Value: 2.69
Row: 5, Col: 1, Value: 3.74
Row: 6, Col: 1, Value: 5.659999999999999
Row: 7, Col: 1, Value: 5.06
Row: 8, Col: 1, Value: 5.2
Row: 9, Col: 1, Value: 5.2
Row: 10, Col: 1, Value: 4.91
DURING THE PERIODS SHOWN IN THE CHART FOR MONEY MARKET, THE HIGHEST
RETURN FOR A QUARTER WAS 1.91% (QUARTER ENDED JUNE 30, 1990) AND THE
LOWEST RETURN FOR A QUARTER WAS 0.63% (QUARTER ENDED DECEMBER 31,
1993).
THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MONEY MARKET WAS
1.38%.
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 each stock fund's
$7.50 redemption fee (trading fee).
<TABLE>
<CAPTION>
For the periods ended Past 1 year Past 5 years Past 10 years/Life of fund
December 31, 1999
<S> <C> <C> <C>
Air Transportation 30.39% 24.07% 13.66%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Automotive -16.14% 6.24% 11.24%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Banking -12.84% 23.14% 19.95%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Financial -0.94% n/a n/a
Services Index
Biotechnology 72.37% 32.34% 24.03%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Health Care Index -4.04% n/a n/a
Brokerage and Investment 26.66% 30.27% 22.23%
Management
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Financial -0.94% n/a n/a
Services Index
Business Services and 25.43% n/a 32.83%A
Outsourcing
S&P 500 21.04% n/a 23.66%A
Goldman Sachs Technology Index 88.87% n/a 74.57%A
Chemicals 15.54% 10.81% 12.09%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Computers 75.60% 47.15% 35.08%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Technology Index 88.87% n/a n/a
Construction and Housing -15.14% 14.57% 12.89%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Consumer Industries 6.76% 22.24% 17.70%B
S&P 500 21.04% 28.56% 18.88%B
Goldman Sachs Consumer 8.32% n/a n/a
Industries Index
Cyclical Industries 9.58% n/a 11.66%C
S&P 500 21.04% n/a 26.09%C
Goldman Sachs Cyclical 5.54% n/a 9.67%C
Industries Index
Defense and Aerospace 8.40% 20.83% 15.13%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Developing Communications 115.75% 38.84% 31.38%B
S&P 500 21.04% 28.56% 18.88%B
Goldman Sachs Technology Index 88.87% n/a n/a
Electronics 100.40% 52.51% 37.00%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Technology Index 88.87% n/a n/a
Energy 30.13% 14.50% 8.18%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Natural 27.23% n/a n/a
Resources Index
Energy Service 66.91% 21.77% 10.12%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Natural 27.23% n/a n/a
Resources Index
Environmental Services -28.15% 0.51% -0.46%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Financial Services -1.56% 25.45% 19.91%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Financial -0.94% n/a n/a
Services Index
Food and Agriculture -22.93% 12.49% 12.45%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Consumer 8.32% n/a n/a
Industries Index
Gold 5.03% -4.96% -1.24%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Natural 27.23% n/a n/a
Resources Index
Health Care -5.87% 24.06% 21.30%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Health Care Index -4.04% n/a n/a
Home Finance -15.07% 17.26% 20.39%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Financial -0.94% n/a n/a
Services Index
Industrial Equipment 13.80% 19.75% 15.82%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Industrial Materials 12.91% 6.11% 8.37%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Insurance -8.84% 21.13% 15.55%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Financial -0.94% n/a n/a
Services Index
Leisure 28.77% 29.30% 18.89%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Consumer 8.32% n/a n/a
Industries Index
Medical Delivery -31.78% 2.46% 9.87%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Health Care Index -4.04% n/a n/a
Medical Equipment and Systems 7.33% n/a 17.73%D
S&P 500 21.04% n/a 21.46%D
Goldman Sachs Health Care Index -4.04% n/a 9.45%D
Multimedia 39.74% 27.39% 19.53%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Consumer 8.32% n/a n/a
Industries Index
Natural Gas 22.34% 11.53% 6.52%E
S&P 500 21.04% 28.56% 22.13%E
Goldman Sachs Utilities Index 20.25% n/a n/a
Natural Resources 34.56% n/a 6.51%C
S&P 500 21.04% n/a 26.09%C
Goldman Sachs Natural 27.23% n/a 9.41%C
Resources Index
Paper and Forest Products 26.52% 10.72% 11.18%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Retailing 1.97% 23.32% 19.56%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Consumer 8.32% n/a n/a
Industries Index
Software and Computer Services 87.26% 41.10% 30.98%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Technology Index 88.87% n/a n/a
Technology 124.72% 48.38% 34.69%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Technology Index 88.87% n/a n/a
Telecommunications 61.53% 31.41% 20.93%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Utilities Index 20.25% n/a n/a
Transportation 23.79% 14.57% 14.77%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Cyclical 5.54% n/a n/a
Industries Index
Utilities Growth 22.07% 27.80% 16.94%
S&P 500 21.04% 28.56% 18.21%
Goldman Sachs Utilities Index 20.25% n/a n/a
Money Market 1.76% 4.57% 4.63%
</TABLE>
A FROM FEBRUARY 4, 1998.
B FROM JUNE 29, 1990.
C FROM MARCH 3, 1997.
D FROM APRIL 28, 1998.
E FROM APRIL 21, 1993.
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 301 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 246 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 252 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 97 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 105 stocks designed to measure the
performance of companies in the natural resources sector.
Goldman Sachs Technology Index is a market capitalization-weighted
index of 185 stocks designed to measure the performance of companies
in the technology sector.
Goldman Sachs Utilities Index is a market capitalization-weighted
index of 150 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
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 0.75%
more for redemption amounts
of up to $1,000
for redemption amounts of $7.50
$1,000 or more
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 0.82%
Total annual fund operating 1.40%
expensesA
AUTOMOTIVE Management fee 0.57%
Distribution and Service None
(12b-1) fee
Other expenses 1.37%
Total annual fund operating 1.94%
expensesA
BANKING Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.65%
Total annual fund operating 1.23%
expensesA
BIOTECHNOLOGY Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.57%
Total annual fund operating 1.16%
expensesA
BROKERAGE AND INVESTMENT Management fee 0.58%
MANAGEMENT
Distribution and Service None
(12b-1) fee
Other expenses 0.71%
Total annual fund operating 1.29%
expensesA
BUSINESS SERVICES AND Management fee 0.58%
OUTSOURCING
Distribution and Service None
(12b-1) fee
Other expenses 0.92%
Total annual fund operating 1.50%
expensesA
CHEMICALS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.06%
Total annual fund operating 1.64%
expensesA
COMPUTERS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.49%
Total annual fund operating 1.07%
expensesA
CONSTRUCTION AND HOUSING Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.84%
Total annual fund operating 2.42%
expensesA
CONSUMER INDUSTRIES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.69%
Total annual fund operating 1.27%
expensesA
CYCLICAL INDUSTRIES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 2.35%
Total annual fund operating 2.93%
expensesA
DEFENSE AND AEROSPACE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.03%
Total annual fund operating 1.61%
expensesA
DEVELOPING COMMUNICATIONS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.53%
Total annual fund operating 1.11%
expensesA
ELECTRONICS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.41%
Total annual fund operating 0.99%
expensesA
ENERGY Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.71%
Total annual fund operating 1.29%
expensesA
ENERGY SERVICE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.65%
Total annual fund operating 1.23%
expensesA
ENVIRONMENTAL SERVICES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.89%
Total annual fund operating 2.47%
expensesA
FINANCIAL SERVICES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.61%
Total annual fund operating 1.19%
expensesA
FOOD AND AGRICULTURE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.73%
Total annual fund operating 1.31%
expensesA
GOLD Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.91%
Total annual fund operating 1.49%
expensesB
HEALTH CARE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.49%
Total annual fund operating 1.07%
expensesA
HOME FINANCE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.81%
Total annual fund operating 1.39%
expensesA
INDUSTRIAL EQUIPMENT Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.85%
Total annual fund operating 1.43%
expensesA
INDUSTRIAL MATERIALS Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 1.33%
Total annual fund operating 1.92%
expensesA
INSURANCE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.81%
Total annual fund operating 1.39%
expensesA
LEISURE Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.57%
Total annual fund operating 1.15%
expensesA
MEDICAL DELIVERY Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.15%
Total annual fund operating 1.73%
expensesA
MEDICAL EQUIPMENT AND SYSTEMS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.08%
Total annual fund operating 1.66%
expensesA
MULTIMEDIA Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.59%
Total annual fund operating 1.17%
expensesA
NATURAL GAS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.84%
Total annual fund operating 1.42%
expensesA
NATURAL RESOURCES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.31%
Total annual fund operating 1.89%
expensesA
PAPER AND FOREST PRODUCTS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.31%
Total annual fund operating 1.89%
expensesA
RETAILING Management fee 0.57%
Distribution and Service None
(12b-1) fee
Other expenses 0.68%
Total annual fund operating 1.25%
expensesA
SOFTWARE AND COMPUTER SERVICES Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.53%
Total annual fund operating 1.11%
expensesA
TECHNOLOGY Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.46%
Total annual fund operating 1.05%
expensesA
TELECOMMUNICATIONS Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.54%
Total annual fund operating 1.12%
expensesA
TRANSPORTATION Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 1.19%
Total annual fund operating 1.77%
expensesA
UTILITIES GROWTH Management fee 0.58%
Distribution and Service None
(12b-1) fee
Other expenses 0.49%
Total annual fund operating 1.07%
expensesA
MONEY MARKET Management fee 0.18%
Distribution and Service None
(12b-1) fee
Other expenses 0.30%
Total annual fund operating 0.48%
expensesA
A FMR HAS VOLUNTARILY AGREED TO REIMBURSE THE FUND TO THE EXTENT THAT
TOTAL OPERATING EXPENSES (EXCLUDING INTEREST, TAXES, CERTAIN
SECURITIES LENDING COSTS, BROKERAGE COMMISSIONS AND EXTRAORDINARY
EXPENSES), AS A PERCENTAGE OF ITS AVERAGE NET ASSETS, EXCEED 2.50%.
THIS ARRANGEMENT CAN BE DISCONTINUED BY FMR AT ANY TIME.
B FMR HAS AGREED TO REIMBURSE GOLD PORTFOLIO TO THE EXTENT THAT TOTAL
OPERATING EXPENSES (EXCLUDING INTEREST, TAXES, CERTAIN SECURITIES
LENDING COSTS, BROKERAGE COMMISSIONS AND EXTRAORDINARY EXPENSES), AS A
PERCENTAGE OF ITS AVERAGE NET ASSETS, EXCEED 1.54%. THIS ARRANGEMENT
WILL REMAIN IN EFFECT THROUGH FEBRUARY 28, 2001.
A portion of the brokerage commissions that a fund pays is used to
reduce that fund's expenses. In addition, through arrangements with
each fund's custodian and transfer agent, 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 are shown in the table below.
Total Operating Expenses
AIR TRANSPORTATION 1.35%
AUTOMOTIVE 1.91%
BANKING 1.19%
BIOTECHNOLOGY 1.15%
BROKERAGE AND INVESTMENT 1.28%
MANAGEMENT
BUSINESS SERVICES AND 1.48%
OUTSOURCING
CHEMICALS 1.63%
COMPUTERS 1.05%
CONSTRUCTION AND HOUSING 2.34%
CONSUMER INDUSTRIES 1.25%
CYCLICAL INDUSTRIES 2.49%*
DEFENSE AND AEROSPACE 1.59%
DEVELOPING COMMUNICATIONS 1.11%
ELECTRONICS 0.98%
ENERGY 1.25%
ENERGY SERVICE 1.20%
ENVIRONMENTAL SERVICES 2.39%
FINANCIAL SERVICES 1.17%
FOOD AND AGRICULTURE 1.29%
GOLD 1.41%
HEALTH CARE 1.05%
HOME FINANCE 1.37%
INDUSTRIAL EQUIPMENT 1.41%
INDUSTRIAL MATERIALS 1.89%
INSURANCE 1.36%
LEISURE 1.12%
MEDICAL DELIVERY 1.67%
MEDICAL EQUIPMENT AND SYSTEMS 1.65%
MULTIMEDIA 1.15%
NATURAL GAS 1.39%
NATURAL RESOURCES 1.85%
PAPER AND FOREST PRODUCTS 1.74%
RETAILING 1.20%
SOFTWARE AND COMPUTER SERVICES 1.11%
TECHNOLOGY 1.04%
TELECOMMUNICATIONS 1.09%
TRANSPORTATION 1.71%
UTILITIES GROWTH 1.04%
MONEY MARKET 0.48%
* AFTER REIMBURSEMENT.
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 at the end of each time period
indicated and if you leave your account open:
Account open Account closed
AIR TRANSPORTATION 1 year $ 438 $ 446
3 years $ 730 $ 737
5 years $ 1,043 $ 1,050
10 years $ 1,929 $ 1,937
AUTOMOTIVE 1 year $ 491 $ 499
3 years $ 891 $ 898
5 years $ 1,316 $ 1,323
10 years $ 2,496 $ 2,504
BANKING 1 year $ 422 $ 429
3 years $ 679 $ 686
5 years $ 955 $ 963
10 years $ 1,744 $ 1,751
BIOTECHNOLOGY 1 year $ 415 $ 422
3 years $ 657 $ 665
5 years $ 919 $ 927
10 years $ 1,667 $ 1,674
BROKERAGE AND INVESTMENT 1 year $ 427 $ 435
MANAGEMENT
3 years $ 697 $ 704
5 years $ 986 $ 994
10 years $ 1,810 $ 1,817
BUSINESS SERVICES AND 1 year $ 448 $ 456
OUTSOURCING
3 years $ 760 $ 767
5 years $ 1,094 $ 1,101
10 years $ 2,037 $ 2,044
CHEMICALS 1 year $ 462 $ 469
3 years $ 802 $ 809
5 years $ 1,165 $ 1,172
10 years $ 2,185 $ 2,193
COMPUTERS 1 year $ 406 $ 413
3 years $ 630 $ 638
5 years $ 872 $ 880
10 years $ 1,566 $ 1,574
CONSTRUCTION AND HOUSING 1 year $ 538 $ 545
3 years $ 1,032 $ 1,039
5 years $ 1,552 $ 1,559
10 years $ 2,974 $ 2,981
CONSUMER INDUSTRIES 1 year $ 425 $ 433
3 years $ 691 $ 698
5 years $ 976 $ 984
10 years $ 1,788 $ 1,795
CYCLICAL INDUSTRIES 1 year $ 587 $ 595
3 years $ 1,179 $ 1,187
5 years $ 1,796 $ 1,804
10 years $ 3,454 $ 3,462
DEFENSE AND AEROSPACE 1 year $ 459 $ 466
3 years $ 793 $ 800
5 years $ 1,150 $ 1,157
10 years $ 2,154 $ 2,161
DEVELOPING COMMUNICATIONS 1 year $ 410 $ 417
3 years $ 642 $ 650
5 years $ 893 $ 901
10 years $ 1,611 $ 1,619
ELECTRONICS 1 year $ 398 $ 405
3 years $ 606 $ 613
5 years $ 831 $ 838
10 years $ 1,477 $ 1,484
ENERGY 1 year $ 427 $ 435
3 years $ 697 $ 704
5 years $ 986 $ 994
10 years $ 1,810 $ 1,817
ENERGY SERVICE 1 year $ 422 $ 429
3 years $ 679 $ 686
5 years $ 955 $ 963
10 years $ 1,744 $ 1,751
ENVIRONMENTAL SERVICES 1 year $ 543 $ 550
3 years $ 1,046 $ 1,054
5 years $ 1,576 $ 1,584
10 years $ 3,022 $ 3,029
FINANCIAL SERVICES 1 year $ 418 $ 425
3 years $ 667 $ 674
5 years $ 935 $ 942
10 years $ 1,700 $ 1,707
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 $ 447 $ 455
3 years $ 757 $ 764
5 years $ 1,089 $ 1,096
10 years $ 2,026 $ 2,034
HEALTH CARE 1 year $ 406 $ 413
3 years $ 630 $ 638
5 years $ 872 $ 880
10 years $ 1,566 $ 1,574
HOME FINANCE 1 year $ 437 $ 445
3 years $ 727 $ 734
5 years $ 1,038 $ 1,045
10 years $ 1,919 $ 1,926
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 $ 489 $ 497
3 years $ 885 $ 892
5 years $ 1,306 $ 1,313
10 years $ 2,476 $ 2,483
INSURANCE 1 year $ 437 $ 445
3 years $ 727 $ 734
5 years $ 1,038 $ 1,045
10 years $ 1,919 $ 1,926
LEISURE 1 year $ 414 $ 421
3 years $ 654 $ 662
5 years $ 914 $ 921
10 years $ 1,656 $ 1,663
MEDICAL DELIVERY 1 year $ 471 $ 478
3 years $ 829 $ 836
5 years $ 1,210 $ 1,218
10 years $ 2,280 $ 2,287
MEDICAL EQUIPMENT AND SYSTEMS 1 year $ 464 $ 471
3 years $ 808 $ 815
5 years $ 1,175 $ 1,183
10 years $ 2,206 $ 2,214
MULTIMEDIA 1 year $ 416 $ 423
3 years $ 660 $ 668
5 years $ 924 $ 932
10 years $ 1,678 $ 1,685
NATURAL GAS 1 year $ 440 $ 448
3 years $ 736 $ 743
5 years $ 1,053 $ 1,061
10 years $ 1,951 $ 1,958
NATURAL RESOURCES 1 year $ 486 $ 494
3 years $ 876 $ 884
5 years $ 1,291 $ 1,298
10 years $ 2,445 $ 2,453
PAPER AND FOREST PRODUCTS 1 year $ 486 $ 494
3 years $ 876 $ 884
5 years $ 1,291 $ 1,298
10 years $ 2,445 $ 2,453
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 $ 410 $ 417
3 years $ 642 $ 650
5 years $ 893 $ 901
10 years $ 1,611 $ 1,619
TECHNOLOGY 1 year $ 404 $ 411
3 years $ 624 $ 632
5 years $ 862 $ 869
10 years $ 1,544 $ 1,552
TELECOMMUNICATIONS 1 year $ 411 $ 418
3 years $ 645 $ 653
5 years $ 898 $ 906
10 years $ 1,622 $ 1,630
TRANSPORTATION 1 year $ 474 $ 482
3 years $ 840 $ 848
5 years $ 1,231 $ 1,238
10 years $ 2,321 $ 2,329
UTILITIES GROWTH 1 year $ 406 $ 413
3 years $ 630 $ 638
5 years $ 872 $ 880
10 years $ 1,566 $ 1,574
MONEY MARKET 1 year $ 348 $ 348
3 years $ 449 $ 449
5 years $ 561 $ 561
10 years $ 886 $ 886
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 aftermarket) 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.
BANKING 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 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.
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, and 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.
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;
satellite design; data processing or computer-related services;
communications systems; research; development and manufacture of
military weapons and transportation; general aviation equipment,
missiles, satellites, 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 hazardous or other wastes; transforming
waste into energy; recycling; and participating in remedial projects,
including 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.
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; companies that provide home health care; companies
that provide drug and alcohol abuse treatment; companies that provide
dental care; companies that operate comprehensive health maintenance
organizations or health insurance organizations; companies that
operate nursing homes for the elderly and disabled; companies that
facilitate the development, testing, or regulatory approval of drugs;
companies that supply or distribute medical equipment or drugs;
companies that provide health care information services, including
companies that provide hardware, software, or research services; 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.
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, and 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 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
Banking, Financial Services, and Home Finance) 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 can 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 from
small cap stocks, and "growth" stocks can react differently from
"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 from 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, labor relations, 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 can be non-diversified in
both product line and customer base.
The BANKINg industry can be significantly affected by the recent
adoption of legislation that has reduced the separation between
commercial and investment banking businesses and changed the laws
governing capitalization and the savings and loan industry. While
providing diversification, this new legislation could expose banks to
well-established competitors, particularly as the historical
distinctions between 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 banks. In addition, general economic
conditions are important to banks that face exposure to credit losses
and can be significantly affected by changes in interest rates.
The BIOTECHNOLOGY industry can be significantly affected by patent
considerations, intense competition, rapid technological change and
obsolescence, and government regulation. Biotechnology companies can
have persistent losses during a new product's transition from
development to production, and revenue patterns can 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 can depend on
overall market activity.
The BUSINESS SERVICES AND OUTSOURCING industry is 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, raw materials prices, and
government regulation. As regulations are developed and enforced,
chemical companies could 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 can be 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 can depend 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 could 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 can 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 can be 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 example,
recent business combinations have included insurance, finance, and
securities brokerage under single ownership. Some primarily retail
corporations have expanded into securities and insurance industries.
The FOOD AND AGRICULTURE industry can be significantly affected by
demographic and product trends, competitive pricing, 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.
The HEALTH CARE industries are subject to government regulation and
reimbursement rates, as well as 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. In
addition, pharmaceutical companies and other companies in the health
care industries can be significantly affected by patent expirations.
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 has led 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, pricing pressure from health maintenance organizations, and
an 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 can 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 can 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 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 can be 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 could 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 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. Money market securities include bank certificates
of deposit, bank acceptances, bank time deposits, notes, commercial
paper, and U.S. Government securities.
A REPURCHASE AGREEMENT is an agreement to buy a security at one price
and a simultaneous agreement to sell it back at an agreed-upon price.
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 can 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 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.
BANKING PORTFOLIO invests primarily in companies engaged in accepting
deposits and making commercial and principally non-mortgage consumer
loans.
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.
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, 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(registered trademark) 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 Fidelity Automated Service Telephone (FAST SM),
1-800-544-5555.
(small solid bullet) For exchanges, redemptions, and account
assistance, 1-800-544-6666.
(small solid bullet) For mutual fund and brokerage information,
1-800-544-6666.
(small solid bullet) For retirement information, 1-800-544-4774.
(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 75039-5587
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 1-800-544-6666 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
1-800-544-6666 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 15 or 30 days, depending on your account;
(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.
(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 property rather than in cash if FMR 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 1-800-544-6666 (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
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 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 1-800-544-6666 to add the feature after
your account is opened. Call 1-800-544-6666 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 1-800-544-6666 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) Minimum purchase: $100
(small solid bullet) Maximum purchase: $100,000
FIDELITY ON-LINE XPRESS+(registered trademark)
TO MANAGE YOUR INVESTMENTS THROUGH YOUR PC.
CALL 1-800-544-0240 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.
FAST
TO ACCESS AND MANAGE YOUR ACCOUNT AUTOMATICALLY BY PHONE USING TOUCH
TONE OR SPEECH RECOGNITION.
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 GAIN 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 gain distributions.
Each stock fund normally pays dividends and capital gain 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 in three
business days. As a result, the delay in paying exchange proceeds when
exchanging between the money market fund and a stock 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 gain distributions
will be automatically reinvested in additional shares of the fund. If
you do not indicate a choice on your application, you will be assigned
this option.
2. INCOME-EARNED OPTION. (stock funds only) Your capital gain
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 gain 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 gain 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, while
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 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
generally 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 March 31, 2000, FMR had approximately $639.1 billion in
discretionary assets under management.
As the manager, FMR is responsible for choosing each fund's
investments and handling its 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. FMR U.K. may provide 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) serves as a sub-adviser for each stock fund. FMR Far
East was organized in 1986 to provide investment research and advice
to FMR. FMR Far East may provide 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 Investments Japan Limited (FIJ), in
Tokyo, Japan, serves as a sub-adviser for each stock fund. As of
September 28, 1999, FIJ had approximately $16.3 billion in
discretionary assets under management. FIJ may provide investment
research and advice on issuers based outside the United States 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 March 31, 2000, FIMM had
approximately $206.8 billion in discretionary assets under management.
Beginning January 1, 2001, FMR Co., Inc. (FMRC) will serve as
sub-adviser for each stock fund. FMRC will be primarily responsible
for choosing investments for each stock fund. FMRC is a wholly owned
subsidiary of FMR.
Pratima Abichandani is manager of Medical Delivery, which she has
managed since February 2000. Since joining Fidelity in 1994, Ms.
Abichandani has worked as an analyst and manager. She received an MBA
from Harvard Business School in 1994.
Praveen Abichandani is manager of Industrial Equipment, which he has
managed since January 2000. Mr. Abichandani joined Fidelity as an
equity research analyst in 1998.
Ramin Arani is 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.
Telis Bertsekas is manager of Software and Computer Services, which he
has managed since March 2000. Mr. Bertsekas joined Fidelity in 1997 as
an equity research analyst covering the beverage and tobacco
industries.
Steven Calhoun is manager of Retailing, which he has managed since
August 1999. Mr. Calhoun joined Fidelity as a research analyst in
1994.
James Catudal is manager of Financial Services, which he has managed
since February 2000. He also manages another Fidelity fund. Since
joining Fidelity in 1997, Mr. Catudal has worked as an analyst and
manager. 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.
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.
Jeffrey Feingold is manager of Defense and Aerospace, Transportation
and Air Transportation, which he has managed since November 1998,
February 2000 and February 2000, respectively. Mr. Feingold joined
Fidelity in 1997 and has worked as an equity analyst following the
apparel, textile and footwear industries.
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.
Brian Hanson is manager of Electronics, which he has managed since
February 2000. Since joining Fidelity in 1996, Mr. Hanson has worked
as an equity research analyst.
Brian Hogan is manager of Construction and Housing and Cyclical
Industries, which he has managed since April 1999 and February 2000,
respectively. He also manages another Fidelity fund. Since joining
Fidelity in 1994, Mr. Hogan has worked as a fixed-income analyst,
research analyst and manager.
Rajiv Kaul is manager of Developing Communications, which he has
managed since February 2000. 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.
Niel Marotta is manager of Gold and Industrial Materials, both of
which he has managed since April 2000. Mr. Marotta joined Fidelity in
1997 as an equity research analyst specializing in Canadian funds.
Yolanda McGettigan is manager of Biotechnology, which she has managed
since February 2000. Since joining Fidelity in 1997, Ms. McGettigan
has worked as an analyst and manager. She received an MBA from the
Fuqua School of Business at Duke University in 1997.
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.
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.
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.
Samuel Peters is manager of Banking, which he has managed since
February 2000. Mr. Peters joined Fidelity in 1999 as an equity analyst
after receiving his MBA from the University of Chicago.
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.
Lawrence Rakers is manager of Computers and Technology, which he has
managed since January 2000 and February 2000, respectively. He also
manages another Fidelity fund. Mr. Rakers joined Fidelity as an
analyst in 1993.
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.
Peter Saperstone is manager of Telecommunications, which he has
managed since October 1998. He also manages other Fidelity funds. Mr.
Saperstone joined Fidelity in 1995 and has worked as an analyst and
manager.
Adam Segel is manager of Paper and Forest Products, which he has
managed since March 2000. Mr. Segel joined Fidelity in 1997 as an
equity research analyst.
Michael Tarlowe is manager of Leisure and Multimedia, both of which he
has managed since January 2000. Mr. Tarlowe joined Fidelity as an
analyst in 1994 after receiving a bachelor of business administration
degree in finance from the University of Michigan.
Victor Thay is manager of Home Finance, which he has managed since
March 1999. 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.
Nicholas Tiller is manager of Energy Service, which he has managed
since February 2000. Mr. Tiller joined Fidelity as an equity analyst
in 1998 after receiving his MBA from Harvard Business School in 1998.
Simon Wolf is manager of Business Services and Outsourcing, which he
has managed since January 2000. Mr. Wolf joined Fidelity as a research
associate in 1996. 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.
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 manager of Natural Gas, which he has managed since
August 1999. Mr. Zann joined Fidelity as an equity research associate
in 1996.
From time to time a manager, analyst, or other Fidelity employee may
express views regarding a particular company, security, industry, or
market sector. The views expressed by any such person are the views of
only that individual as of the time expressed and do not necessarily
represent the views of Fidelity or any other person in the Fidelity
organization. Any such views are subject to change at any time based
upon market or other conditions and Fidelity disclaims any
responsibility to update such views. These views may not be relied on
as investment advice and, because investment decisions for a Fidelity
fund are based on numerous factors, may not be relied on as an
indication of trading intent on behalf of any Fidelity fund.
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 2000, the group fee rate was .2755% for each stock fund
and the group fee rate was .1260% 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, as a percentage of a fund's average net
assets, for the fiscal year ended February 29, 2000, for each fund is
shown in the table below.
Fund Total Management Fee
Air Transportation 0.58%
Automotive 0.57%
Banking 0.58%
Biotechnology 0.59%
Brokerage and Investment 0.58%
Management
Business Services and 0.58%
Outsourcing
Chemicals 0.58%
Computers 0.58%
Construction and Housing 0.58%
Consumer Industries 0.58%
Cyclical Industries 0.58%
Defense and Aerospace 0.58%
Developing Communications 0.58%
Electronics 0.58%
Energy 0.58%
Energy Service 0.58%
Environmental Services 0.58%
Financial Services 0.58%
Food and Agriculture 0.58%
Gold 0.58%
Health Care 0.58%
Home Finance 0.58%
Industrial Equipment 0.58%
Industrial Materials 0.59%
Insurance 0.58%
Leisure 0.58%
Medical Delivery 0.58%
Medical Equipment and Systems 0.58%
Multimedia 0.58%
Natural Gas 0.58%
Natural Resources 0.58%
Paper and Forest Products 0.58%
Retailing 0.57%
Software and Computer Services 0.58%
Technology 0.59%
Telecommunications 0.58%
Transportation 0.58%
Utilities Growth 0.58%
Money Market 0.18%
FMR pays FIMM, FMR U.K. and FMR Far East for providing sub-advisory
services. FMR Far East pays FIJ for providing sub-advisory services.
FMR will pay FMRC for providing sub-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, in the case of certain funds, may be discontinued
by FMR at any time, can decrease a fund's expenses and boost its
performance.
As of February 29, 2000, approximately 29.48% and 39.24% of Cyclical
Industries' and Natural Resources' total outstanding shares,
respectively, were held by FMR affiliates.
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 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.
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), (5), and (9) 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 to or to buy shares of the funds from any
person to whom it is unlawful to make such offer.
APPENDIX
FINANCIAL HIGHLIGHTS
The financial highlights tables are intended to help you understand
each fund's financial history for the past 5 years or, if shorter, the
period of the fund's operations. Certain information reflects
financial results for a single fund share. The total returns in the
table represent the rate that an investor would have earned (or lost)
on an investment in the fund (assuming reinvestment of all dividends
and distributions). This information has been audited by
PricewaterhouseCoopers LLP, independent accountants, whose reports,
along with each fund's financial highlights and financial statements,
are included in each fund's annual report. A free copy of each annual
report is available upon request.
AIR TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 27.76 $ 26.86 $ 17.72 $ 21.11 $ 13.93
period
Income from Investment
Operations
Net investment income (loss) C (.15) (.14) (.19) (.22) (.01)
Net realized and unrealized 2.59 1.06 10.59 (3.12) 7.47
gain (loss)
Total from investment 2.44 .92 10.40 (3.34) 7.46
operations
Less Distributions
From net realized gain (3.88) (.21) (1.43) (.07) (.46)
In excess of net realized gain - - - (.20) -
Total distributions (3.88) (.21) (1.43) (.27) (.46)
Redemption fees added to paid .13 .19 .17 .22 .18
in capital
Net asset value, end of period $ 26.45 $ 27.76 $ 26.86 $ 17.72 $ 21.11
TOTAL RETURN A, B 8.50% 4.11% 61.10% (15.06)% 54.91%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 24,463 $ 65,949 $ 181,185 $ 35,958 $ 75,359
(000 omitted)
Ratio of expenses to average 1.40% 1.35% 1.93% 1.89% 1.47%
net assets
Ratio of expenses to average 1.35% D 1.27% D 1.87% D 1.80% D 1.41% D
net assets after expense
reductions
Ratio of net investment (.48)% (.50)% (.84)% (1.10)% (.07)%
income (loss) to average net
assets
Portfolio turnover rate 252% 260% 294% 469% 504%
</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
AUTOMOTIVE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 23.28 $ 27.50 $ 25.38 $ 21.85 $ 19.84
period
Income from Investment
Operations
Net investment income (loss) C (.12) .03 .05 .13 .03
Net realized and unrealized (4.01) (2.09) 5.21 4.28 1.95
gain (loss)
Total from investment (4.13) (2.06) 5.26 4.41 1.98
operations
Less Distributions
From net investment income - (.01) (.08) (.17) -
From net realized gain - (2.17) (3.09) (.75) -
Total distributions - (2.18) (3.17) (.92) -
Redemption fees added to paid .08 .02 .03 .04 .03
in capital
Net asset value, end of period $ 19.23 $ 23.28 $ 27.50 $ 25.38 $ 21.85
TOTAL RETURN A, B (17.40)% (8.52)% 22.78% 20.60% 10.13%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 10,561 $ 64,541 $ 32,489 $ 86,347 $ 55,753
(000 omitted)
Ratio of expenses to average 1.94% 1.45% 1.60% 1.56% 1.81%
net assets
Ratio of expenses to average 1.91% D 1.41% D 1.56% D 1.52% D 1.80% D
net assets after expense
reductions
Ratio of net investment (.49)% .11% .17% .54% .13%
income (loss) to average net
assets
Portfolio turnover rate 29% 96% 153% 175% 61%
</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
BANKING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 41.57 $ 43.18 $ 32.82 $ 24.37 $ 18.01
period
Income from Investment
Operations
Net investment income C .39 .39 .40 .37 .52
Net realized and unrealized (7.74) .91 11.41 9.70 6.78
gain (loss)
Total from investment (7.35) 1.30 11.81 10.07 7.30
operations
Less Distributions
From net investment income (.36) (.28) (.28) (.27) (.25)
From net realized gain (7.44) (2.66) (1.23) (1.40) (.72)
Total distributions (7.80) (2.94) (1.51) (1.67) (.97)
Redemption fees added to paid .05 .03 .06 .05 .03
in capital
Net asset value, end of period $ 26.47 $ 41.57 $ 43.18 $ 32.82 $ 24.37
TOTAL RETURN A , B (22.07)% 3.10% 36.64% 43.33% 40.94%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 363,537 $ 925,829 $ 1,338,896 $ 837,952 $ 315,178
(000 omitted)
Ratio of expenses to average 1.23% 1.17% 1.25% 1.46% 1.41%
net assets
Ratio of expenses to average 1.19% D 1.16% D 1.24% D 1.45% D 1.40% D
net assets after expense
reductions
Ratio of net investment 1.00% .91% 1.07% 1.36% 2.42%
income to average net assets
Portfolio turnover rate 94% 22% 25% 43% 103%
</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
BIOTECHNOLOGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 41.35 $ 34.52 $ 34.24 $ 36.60 $ 25.30
period
Income from Investment
Operations
Net investment income (loss) C (.30) (.26) (.27) (.20) .11
Net realized and unrealized 68.93 9.15 5.20 1.89 11.21
gain (loss)
Total from investment 68.63 8.89 4.93 1.69 11.32
operations
Less Distributions
From net investment income - - - (.03) (.07)
From net realized gain (2.82) (2.09) (4.71) (4.06) -
Total distributions (2.82) (2.09) (4.71) (4.09) (.07)
Redemption fees added to paid .11 .03 .06 .04 .05
in capital
Net asset value, end of period $ 107.27 $ 41.35 $ 34.52 $ 34.24 $ 36.60
TOTAL RETURN A, B 173.22% 27.13% 16.11% 5.85% 44.97%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 5,292,350 $ 741,530 $ 579,542 $ 674,902 $ 1,096,864
(000 omitted)
Ratio of expenses to average 1.16% 1.34% 1.49% 1.57% 1.44% D
net assets
Ratio of expenses to average 1.15% E 1.30% E 1.47% E 1.56% E 1.43% E
net assets after expense
reductions
Ratio of net investment (.51)% (.75)% (.81)% (.59)% .35%
income (loss) to average net
assets
Portfolio turnover rate 72% 86% 162% 41% 67%
</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 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
BROKERAGE AND INVESTMENT MANAGEMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 41.16 $ 39.78 $ 25.76 $ 18.49 $ 15.51
period
Income from Investment
Operations
Net investment income (loss) C (.04) .10 .16 .08 .09
Net realized and unrealized 7.64 1.72 14.46 7.80 4.29
gain (loss)
Total from investment 7.60 1.82 14.62 7.88 4.38
operations
Less Distributions
From net investment income (.05) (.01) (.09) (.06) (.04)
From net realized gain (3.13) (.52) (.61) (.65) (1.09)
In excess of net realized gain - - - - (.35)
Total distributions (3.18) (.53) (.70) (.71) (1.48)
Redemption fees added to paid .11 .09 .10 .10 .08
in capital
Net asset value, end of period $ 45.69 $ 41.16 $ 39.78 $ 25.76 $ 18.49
TOTAL RETURN A, B 19.14% 4.76% 57.56% 44.27% 29.85%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 423,572 $ 482,525 $ 676,067 $ 458,787 $ 38,382
(000 omitted)
Ratio of expenses to average 1.29% 1.26% 1.33% 1.94% 1.64% D
net assets
Ratio of expenses to average 1.28% E 1.24% E 1.29% E 1.93% E 1.61% E
net assets after expense
reductions
Ratio of net investment (.09)% .26% .49% .37% .50%
income (loss) to average net
assets
Portfolio turnover rate 47% 59% 100% 16% 166%
</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 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
BUSINESS SERVICES AND OUTSOURCING
Years ended February 28, 2000 I 1999 1998 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.57 $ 10.89 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) D (.05) E (.11) -
Net realized and unrealized 1.69 2.92 .89
gain (loss)
Total from investment 1.64 2.81 .89
operations
Less Distributions
From net realized gain (1.23) (.16) -
Redemption fees added to paid .02 .03 -
in capital
Net asset value, end of period $ 14.00 $ 13.57 $ 10.89
TOTAL RETURN B, C 12.15% 26.23% 8.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 52,278 $ 64,123 $ 15,915
(000 omitted)
Ratio of expenses to average 1.50% 1.66% 2.50% A, G
net assets
Ratio of expenses to average 1.48% H 1.64% H 2.50% A
net assets after expense
reductions
Ratio of net investment (.37)% (.91)% (.49)% A
income (loss) to average net
assets
Portfolio turnover rate 54% 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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM SABRE
HOLDINGS CORP. CLASS A WHICH AMOUNTED TO $.05 PER SHARE.
F FOR THE PERIOD FEBRUARY 4, 1998 (COMMENCEMENT OF OPERATIONS) TO
FEBRUARY 28, 1998.
G 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.
H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
I FOR THE YEAR ENDED FEBRUARY 29
CHEMICALS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 31.10 $ 45.90 $ 42.53 $ 39.53 $ 33.91
period
Income from Investment
Operations
Net investment income (loss) C .15 .17 (.02) .28 .01
Net realized and unrealized 3.22 (10.77) 7.88 5.49 8.89
gain (loss)
Total from investment 3.37 (10.60) 7.86 5.77 8.90
operations
Less Distributions
From net investment income (.09) (.05) - (.12) (.08)
From net realized gain (.73) (3.52) (4.54) (2.74) (3.22)
In excess of net realized gain - (.68) - - -
Total distributions (.82) (4.25) (4.54) (2.86) (3.30)
Redemption fees added to paid .14 .05 .05 .09 .02
in capital
Net asset value, end of period $ 33.79 $ 31.10 $ 45.90 $ 42.53 $ 39.53
TOTAL RETURN A, B 11.10% (23.66)% 19.47% 15.06% 27.48%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 26,307 $ 31,862 $ 69,349 $ 111,409 $ 89,230
(000 omitted)
Ratio of expenses to average 1.64% 1.58% 1.68% 1.83% 1.99%
net assets
Ratio of expenses to average 1.63% D 1.51% D 1.67% D 1.81% D 1.97% D
net assets after expense
reductions
Ratio of net investment .40% .44% (.05)% .67% .04%
income (loss) to average net
assets
Portfolio turnover rate 132% 141% 31% 207% 87%
</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
COMPUTERS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 68.37 $ 41.08 $ 48.25 $ 41.03 $ 30.67
period
Income from Investment
Operations
Net investment income (loss) C (.41) (.29) (.32) (.36) (.23)
Net realized and unrealized 74.86 27.39 6.42 9.94 16.10
gain (loss)
Total from investment 74.45 27.10 6.10 9.58 15.87
operations
Less Distributions
From net realized gain (14.92) - (10.64) (2.47) (5.61)
In excess of net realized gain - - (2.75) - -
Total distributions (14.92) - (13.39) (2.47) (5.61)
Redemption fees added to paid .05 .19 .12 .11 .10
in capital
Net asset value, end of period $ 127.95 $ 68.37 $ 41.08 $ 48.25 $ 41.03
TOTAL RETURN A, B 119.58% 66.43% 20.33% 23.97% 52.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,824,215 $ 1,831,435 $ 785,465 $ 604,286 $ 527,337
(000 omitted)
Ratio of expenses to average 1.07% 1.25% 1.40% 1.48% 1.40%
net assets
Ratio of expenses to average 1.05% D 1.23% D 1.34% D 1.44% D 1.38% D
net assets after expense
reductions
Ratio of net investment (.47)% (.54)% (.67)% (.83)% (.56)%
income (loss) to average net
assets
Portfolio turnover rate 129% 133% 333% 255% 129%
</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
CONSTRUCTION AND HOUSING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 25.02 $ 25.63 $ 22.00 $ 19.56 $ 16.79
period
Income from Investment
Operations
Net investment income (loss) C (.13) (.06) (.25) .06 .07
Net realized and unrealized (4.11) (.53) 7.67 3.38 3.55
gain (loss)
Total from investment (4.24) (.59) 7.42 3.44 3.62
operations
Less Distributions
From net investment income - - (.02) (.02) (.07)
From net realized gain (3.42) (.06) (3.87) (1.03) (.81)
Total distributions (3.42) (.06) (3.89) (1.05) (.88)
Redemption fees added to paid .08 .04 .10 .05 .03
in capital
Net asset value, end of period $ 17.44 $ 25.02 $ 25.63 $ 22.00 $ 19.56
TOTAL RETURN A, B (18.28)% (2.16)% 40.04% 18.64% 21.77%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 7,925 $ 51,652 $ 57,484 $ 30,581 $ 42,668
(000 omitted)
Ratio of expenses to average 2.42% 1.43% 2.50% D 1.41% 1.43%
net assets
Ratio of expenses to average 2.34% E 1.37% E 2.43% E 1.35% E 1.40% E
net assets after expense
reductions
Ratio of net investment (.53)% (.23)% (1.10)% .27% .39%
income (loss) to average net
assets
Portfolio turnover rate 34% 226% 404% 270% 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 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
CONSUMER INDUSTRIES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 G 1999 1998 1997 1996 G
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 31.81 $ 27.31 $ 20.66 $ 17.84 $ 13.91
period
Income from Investment
Operations
Net investment income (loss) C .02 D (.04) (.22) (.22) .08
Net realized and unrealized (1.29) 5.41 8.34 2.93 3.97
gain (loss)
Total from investment (1.27) 5.37 8.12 2.71 4.05
operations
Less Distributions
From net investment income (.02) - - - (.02)
From net realized gain (2.08) (.90) (1.52) - (.01)
In excess of net realized gain - - - - (.20)
Total distributions (2.10) (.90) (1.52) - (.23)
Redemption fees added to paid .02 .03 .05 .11 .11
in capital
Net asset value, end of period $ 28.46 $ 31.81 $ 27.31 $ 20.66 $ 17.84
TOTAL RETURN A, B (4.55)% 20.18% 40.36% 15.81% 30.01%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 63,331 $ 82,244 $ 72,152 $ 18,392 $ 22,362
(000 omitted)
Ratio of expenses to average 1.27% 1.34% 2.01% 2.49% 1.53% F
net assets
Ratio of expenses to average 1.25% E 1.32% E 1.97% E 2.44% E 1.48% E
net assets after expense
reductions
Ratio of net investment .06% (.15)% (.90)% (1.13)% .46%
income (loss) to average net
assets
Portfolio turnover rate 96% 150% 199% 340% 601%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM
UNILEVER NV (NY SHARES) WHICH AMOUNTED TO $.04 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 DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE
LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
G FOR THE YEAR ENDED FEBRUARY 29
CYCLICAL INDUSTRIES
Years ended February 28, 2000 H 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 11.39 $ 12.07 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) D (.13) (.13) (.11)
Net realized and unrealized .21 (.49) 2.59
gain (loss)
Total from investment .08 (.62) 2.48
operations
Less Distributions
From net realized gain - (.09) (.46)
Redemption fees added to paid .08 .03 .05
in capital
Net asset value, end of period $ 11.55 $ 11.39 $ 12.07
TOTAL RETURN B, C 1.40% (4.96)% 25.77%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 4,112 $ 3,087 $ 3,965
(000 omitted)
Ratio of expenses to average 2.50% F 2.50% F 2.50% A, F
net assets
Ratio of expenses to average 2.49% G 2.49% G 2.50% A
net assets after expense
reductions
Ratio of net investment (1.00)% (1.09)% (.93)% A
income (loss) to average net
assets
Portfolio turnover rate 211% 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 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.
H FOR THE YEAR ENDED FEBRUARY 29
DEFENSE AND AEROSPACE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 33.85 $ 37.57 $ 28.94 $ 26.97 $ 19.64
period
Income from Investment
Operations
Net investment income (loss) C (.15) (.19) (.29) (.11) (.05)
Net realized and unrealized 1.14 (3.61) 11.84 4.18 9.09
gain (loss)
Total from investment .99 (3.80) 11.55 4.07 9.04
operations
Less Distributions
From net realized gain (.59) - (3.04) (2.17) (1.82)
Redemption fees added to paid .11 .08 .12 .07 .11
in capital
Net asset value, end of period $ 34.36 $ 33.85 $ 37.57 $ 28.94 $ 26.97
TOTAL RETURN A, B 3.24% (9.90)% 42.68% 15.87% 47.40%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 21,406 $ 28,497 $ 101,805 $ 68,803 $ 26,648
(000 omitted)
Ratio of expenses to average 1.61% 1.48% 1.77% 1.84% 1.77% D
net assets
Ratio of expenses to average 1.59% E 1.42% E 1.71% E 1.81% E 1.75% E
net assets after expense
reductions
Ratio of net investment (.42)% (.53)% (.85)% (.39)% (.20)%
income (loss) to average net
assets
Portfolio turnover rate 146% 221% 311% 219% 267%
</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
DEVELOPING COMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 32.72 $ 20.14 $ 19.68 $ 19.42 $ 20.40
period
Income from Investment
Operations
Net investment income (loss) C (.22) (.16) (.18) (.18) (.17)
Net realized and unrealized 52.31 12.72 4.95 .42 4.17
gain (loss)
Total from investment 52.09 12.56 4.77 .24 4.00
operations
Less Distributions
From net realized gain (3.07) (.07) (4.35) - (5.00)
Redemption fees added to paid .07 .09 .04 .02 .02
in capital
Net asset value, end of period $ 81.81 $ 32.72 $ 20.14 $ 19.68 $ 19.42
TOTAL RETURN A, B 166.12% 63.01% 28.17% 1.34% 21.84%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 3,452,727 $ 612,061 $ 238,356 $ 220,360 $ 333,185
(000 omitted)
Ratio of expenses to average 1.11% 1.38% 1.61% 1.64% 1.53%
net assets
Ratio of expenses to average 1.11% 1.34% D 1.55% D 1.62% D 1.51% D
net assets after expense
reductions
Ratio of net investment (.47)% (.64)% (.82)% (.86)% (.78)%
income (loss) to average net
assets
Portfolio turnover rate 112% 299% 383% 202% 249%
</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
ELECTRONICS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 47.34 $ 34.99 $ 37.95 $ 28.18 $ 19.80
period
Income from Investment
Operations
Net investment income (loss) C (.33) (.23) (.17) (.17) (.08)
Net realized and unrealized 81.13 12.53 7.32 9.80 13.51
gain (loss)
Total from investment 80.80 12.30 7.15 9.63 13.43
operations
Less Distributions
From net realized gain (6.62) - (7.60) - (5.25)
In excess of net realized gain - - (2.60) - -
Total distributions (6.62) - (10.20) - (5.25)
Redemption fees added to paid .06 .05 .09 .14 .20
in capital
Net asset value, end of period $ 121.58 $ 47.34 $ 34.99 $ 37.95 $ 28.18
TOTAL RETURN A, B 178.06% 35.30% 24.15% 34.67% 72.75%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 9,960,884 $ 2,885,548 $ 2,668,750 $ 1,744,017 $ 1,133,362
(000 omitted)
Ratio of expenses to average .99% 1.18% 1.18% 1.33% 1.25%
net assets
Ratio of expenses to average .98% D 1.15% D 1.12% D 1.29% D 1.22% D
net assets after expense
reductions
Ratio of net investment (.46)% (.62)% (.42)% (.54)% (.28)%
income (loss) to average net
assets
Portfolio turnover rate 125% 160% 435% 341% 366%
</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 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 16.23 $ 21.20 $ 21.31 $ 18.97 $ 16.10
period
Income from Investment
Operations
Net investment income C .10 .13 .11 .13 .18
Net realized and unrealized 7.11 (4.71) 3.93 3.59 3.13
gain (loss)
Total from investment 7.21 (4.58) 4.04 3.72 3.31
operations
Less Distributions
From net investment income (.09) (.02) (.09) (.13) (.11)
From net realized gain (.29) (.40) (4.09) (1.31) (.36)
Total distributions (.38) (.42) (4.18) (1.44) (.47)
Redemption fees added to paid .05 .03 .03 .06 .03
in capital
Net asset value, end of period $ 23.11 $ 16.23 $ 21.20 $ 21.31 $ 18.97
TOTAL RETURN A, B 44.89% (22.00)% 20.40% 20.35% 20.92%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 175,672 $ 120,004 $ 147,023 $ 203,265 $ 119,676
(000 omitted)
Ratio of expenses to average 1.29% 1.46% 1.58% 1.57% 1.63%
net assets
Ratio of expenses to average 1.25% D 1.42% D 1.53% D 1.55% D 1.63%
net assets after expense
reductions
Ratio of net investment .45% .68% .47% .62% 1.04%
income to average net assets
Portfolio turnover rate 124% 138% 115% 87% 97%
</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
ENERGY SERVICE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 f
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 13.09 $ 28.02 $ 20.46 $ 16.09 $ 11.97
period
Income from Investment
Operations
Net investment income (loss) C (.09) (.10) (.10) (.01) .08 d
Net realized and unrealized 15.86 (13.26) 9.36 5.05 4.49
gain (loss)
Total from investment 15.77 (13.36) 9.26 5.04 4.57
operations
Less Distributions
From net investment income - - - - (.04)
From net realized gain - (1.71) (1.85) (.79) (.48)
Total distributions - (1.71) (1.85) (.79) (.52)
Redemption fees added to paid .10 .14 .15 .12 .07
in capital
Net asset value, end of period $ 28.96 $ 13.09 $ 28.02 $ 20.46 $ 16.09
TOTAL RETURN A, B 121.24% (50.57)% 48.43% 32.26% 39.15%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 631,886 $ 366,896 $ 919,002 $ 439,504 $ 273,805
(000 omitted)
Ratio of expenses to average 1.23% 1.39% 1.25% 1.47% 1.59%
net assets
Ratio of expenses to average 1.20% e 1.35% e 1.22% e 1.45% e 1.58% e
net assets after expense
reductions
Ratio of net investment (.40)% (.49)% (.35)% (.07)% .60%
income (loss) to average net
assets
Portfolio turnover rate 69% 75% 78% 167% 223%
</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 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, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 12.77 $ 16.46 $ 14.50 $ 12.42 $ 10.27
period
Income from Investment
Operations
Net investment income (loss) C (.21) (.18) (.13) (.08) (.17)
Net realized and unrealized (3.03) (3.50) 2.07 2.04 2.95
gain (loss)
Total from investment (3.24) (3.68) 1.94 1.96 2.78
operations
Less Distributions
From net realized gain - - - - (.65)
In excess of net realized gain (.01) (.03) - (.02) -
Total distributions (.01) (.03) - (.02) (.65)
Redemption fees added to paid .05 .02 .02 .14 .02
in capital
Net asset value, end of period $ 9.57 $ 12.77 $ 16.46 $ 14.50 $ 12.42
TOTAL RETURN A, B (25.00)% (22.23)% 13.52% 16.93% 27.49%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 17,553 $ 15,534 $ 25,183 $ 32,525 $ 27,587
(000 omitted)
Ratio of expenses to average 2.47% 2.20% 2.23% 2.18% 2.36%
net assets
Ratio of expenses to average 2.39% D 2.16% D 2.22% D 2.11% D 2.32% D
net assets after expense
reductions
Ratio of net investment (1.76)% (1.23)% (.84)% (.59)% (1.43)%
income (loss) to average net
assets
Portfolio turnover rate 206% 123% 59% 252% 138%
</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
FINANCIAL SERVICES
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 100.82 $ 103.28 $ 82.94 $ 65.70 $ 48.23
period
Income from Investment
Operations
Net investment income C .67 .56 .70 .74 1.03
Net realized and unrealized (14.61) 7.88 30.65 21.55 17.56
gain (loss)
Total from investment (13.94) 8.44 31.35 22.29 18.59
operations
Less Distributions
From net investment income (.64) (.19) (.64) (.63) (.37)
From net realized gain (5.09) (10.81) (10.51) (4.56) (.91)
Total distributions (5.73) (11.00) (11.15) (5.19) (1.28)
Redemption fees added to paid .16 .10 .14 .14 .16
in capital
Net asset value, end of period $ 81.31 $ 100.82 $ 103.28 $ 82.94 $ 65.70
TOTAL RETURN A, B (14.53)% 8.42% 41.08% 35.54% 39.05%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 344,152 $ 547,000 $ 604,908 $ 426,424 $ 270,466
(000 omitted)
Ratio of expenses to average 1.19% 1.20% 1.31% 1.45% 1.42%
net assets
Ratio of expenses to average 1.17% D 1.18% D 1.29% D 1.43% D 1.41% D
net assets after expense
reductions
Ratio of net investment .66% .58% .78% 1.03% 1.78%
income to average net assets
Portfolio turnover rate 57% 60% 84% 80% 125%
</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, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 46.92 $ 48.81 $ 44.53 $ 42.15 $ 32.53
period
Income from Investment
Operations
Net investment income C .42 D .21 .33 .42 .37
Net realized and unrealized (13.07) 3.50 9.22 4.91 11.61
gain (loss)
Total from investment (12.65) 3.71 9.55 5.33 11.98
operations
Less Distributions
From net investment income (.42) (.16) (.37) (.24) (.20)
From net realized gain (1.79) (5.47) (4.95) (2.77) (2.20)
In excess of net realized gain (.21) - - - -
Total distributions (2.42) (5.63) (5.32) (3.01) (2.40)
Redemption fees added to paid .03 .03 .05 .06 .04
in capital
Net asset value, end of period $ 31.88 $ 46.92 $ 48.81 $ 44.53 $ 42.15
TOTAL RETURN A, B (27.86)% 7.83% 23.58% 13.59% 37.92%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 78,288 $ 206,007 $ 250,567 $ 223,423 $ 301,102
(000 omitted)
Ratio of expenses to average 1.31% 1.31% 1.49% 1.52% 1.43%
net assets
Ratio of expenses to average 1.29% E 1.29% E 1.48% E 1.50% E 1.42% E
net assets after expense
reductions
Ratio of net investment 1.00% .45% .73% 1.01% .99%
income to average net assets
Portfolio turnover rate 38% 68% 74% 91% 124%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM
UNILEVER NV (NY SHARES) WHICH AMOUNTED TO $.28 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
GOLD
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 12.79 $ 15.17 $ 28.21 $ 27.11 $ 18.44
period
Income from Investment
Operations
Net investment income (loss) C .09 D (.08) (.13) (.16) (.06)
Net realized and unrealized .46 (2.43) (11.78) 1.60 8.62
gain (loss)
Total from investment .55 (2.51) (11.91) 1.44 8.56
operations
Less Distributions
From net realized gain - - (1.29) (.50) -
Redemption fees added to paid .11 .13 .16 .16 .11
in capital
Net asset value, end of period $ 13.45 $ 12.79 $ 15.17 $ 28.21 $ 27.11
TOTAL RETURN A, B 5.16% (15.69)% (43.15)% 6.10% 47.02%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 283,966 $ 179,619 $ 219,668 $ 428,103 $ 451,493
(000 omitted)
Ratio of expenses to average 1.49% 1.57% 1.55% 1.44% 1.39%
net assets
Ratio of expenses to average 1.41% F 1.54% F 1.48% F 1.42% F 1.39%
net assets after expense
reductions
Ratio of net investment .68% (.59)% (.67)% (.59)% (.27)%
income (loss) to average net
assets
Portfolio turnover rate 71% G 59% 89% 63% 56%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM GOLD
FIELDS LTD. WHICH AMOUNTED TO $.06 PER SHARE.
E FOR THE YEAR ENDED FEBRUARY 29
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 THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN
THE MERGER.
HEALTH CARE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 137.60 $ 113.84 $ 102.45 $ 100.47 $ 76.13
period
Income from Investment
Operations
Net investment income C .15 .17 .33 .52 .95
Net realized and unrealized .90 29.85 31.94 18.01 28.85
gain (loss)
Total from investment 1.05 30.02 32.27 18.53 29.80
operations
Less Distributions
From net investment income (.08) (.19) (.25) (.65) (.59)
From net realized gain (7.85) (6.17) (20.73) (15.95) (4.92)
Total distributions (7.93) (6.36) (20.98) (16.60) (5.51)
Redemption fees added to paid .07 .10 .10 .05 .05
in capital
Net asset value, end of period $ 130.79 $ 137.60 $ 113.84 $ 102.45 $ 100.47
TOTAL RETURN A, B 1.15% 27.20% 36.47% 20.41% 39.68%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,365,063 $ 3,145,825 $ 2,224,019 $ 1,372,554 $ 1,525,910
(000 omitted)
Ratio of expenses to average 1.07% 1.07% 1.20% 1.33% 1.31%
net assets
Ratio of expenses to average 1.05% D 1.05% D 1.18% D 1.32% D 1.30% D
net assets after expense
reductions
Ratio of net investment .12% .14% .31% .52% 1.06%
income to average net assets
Portfolio turnover rate 70% 66% 79% 59% 54%
</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, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 42.09 $ 53.36 $ 46.00 $ 33.30 $ 23.92
period
Income from Investment
Operations
Net investment income C .30 .28 .33 .53 .53
Net realized and unrealized (10.64) (10.16) 13.10 14.60 9.72
gain (loss)
Total from investment (10.34) (9.88) 13.43 15.13 10.25
operations
Less Distributions
From net investment income (.19) (.07) (.29) (.32) (.19)
From net realized gain (.69) (1.38) (5.84) (2.16) (.73)
Total distributions (.88) (1.45) (6.13) (2.48) (.92)
Redemption fees added to paid .05 .06 .06 .05 .05
in capital
Net asset value, end of period $ 30.92 $ 42.09 $ 53.36 $ 46.00 $ 33.30
TOTAL RETURN A, B (24.88)% (19.12)% 32.39% 47.50% 43.24%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 213,058 $ 740,440 $ 1,668,610 $ 1,176,828 $ 617,035
(000 omitted)
Ratio of expenses to average 1.39% 1.19% 1.21% 1.38% 1.35%
net assets
Ratio of expenses to average 1.37% D 1.18% D 1.19% D 1.34% D 1.32% D
net assets after expense
reductions
Ratio of net investment .72% .57% .67% 1.41% 1.80%
income to average net assets
Portfolio turnover rate 91% 18% 54% 78% 81%
</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
INDUSTRIAL EQUIPMENT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 25.23 $ 25.91 $ 25.51 $ 25.11 $ 20.04
period
Income from Investment
Operations
Net investment income (loss) C .02 (.04) (.08) .06 .04
Net realized and unrealized 4.44 .25 5.73 4.15 7.10
gain (loss)
Total from investment 4.46 .21 5.65 4.21 7.14
operations
Less Distributions
From net investment income (.01) - (.02) (.04) (.05)
From net realized gain (3.34) (.92) (5.26) (3.84) (2.05)
Total distributions (3.35) (.92) (5.28) (3.88) (2.10)
Redemption fees added to paid .04 .03 .03 .07 .03
in capital
Net asset value, end of period $ 26.38 $ 25.23 $ 25.91 $ 25.51 $ 25.11
TOTAL RETURN A, B 18.98% 1.00% 25.76% 18.25% 36.86%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 26,117 $ 31,573 $ 50,428 $ 102,882 $ 137,520
(000 omitted)
Ratio of expenses to average 1.43% 1.43% 1.67% 1.51% 1.54%
net assets
Ratio of expenses to average 1.41% D 1.41% D 1.60% D 1.44% D 1.53% D
net assets after expense
reductions
Ratio of net investment .06% (.16)% (.32)% .25% .19%
income (loss) to average net
assets
Portfolio turnover rate 119% 84% 115% 261% 115%
</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, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 20.32 $ 25.00 $ 27.66 $ 26.07 $ 23.13
period
Income from Investment
Operations
Net investment income (loss) C .05 (.12) (.11) .06 .12
Net realized and unrealized (.89) (4.60) 1.43 3.12 2.92
gain (loss)
Total from investment (.84) (4.72) 1.32 3.18 3.04
operations
Less Distributions
From net investment income (.03) - (.03) (.06) (.15)
From net realized gain - - (4.00) (1.57) -
Total distributions (.03) - (4.03) (1.63) (.15)
Redemption fees added to paid .19 .04 .05 .04 .05
in capital
Net asset value, end of period $ 19.64 $ 20.32 $ 25.00 $ 27.66 $ 26.07
TOTAL RETURN A, B (3.22)% (18.72)% 6.59% 12.69% 13.38%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 20,627 $ 11,162 $ 22,582 $ 66,462 $ 86,338
(000 omitted)
Ratio of expenses to average 1.92% 2.07% 1.98% 1.54% 1.64%
net assets
Ratio of expenses to average 1.89% D 2.04% D 1.94% D 1.51% D 1.61% D
net assets after expense
reductions
Ratio of net investment .21% (.52)% (.42)% .23% .49%
income (loss) to average net
assets
Portfolio turnover rate 257% 82% 118% 105% 138%
</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, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 42.14 $ 42.10 $ 32.62 $ 26.77 $ 21.31
period
Income from Investment
Operations
Net investment income (loss) C (.05) (.04) .01 .01 .06
Net realized and unrealized (7.92) 4.01 12.93 7.21 6.15
gain (loss)
Total from investment (7.97) 3.97 12.94 7.22 6.21
operations
Less Distributions
From net investment income - - - (.03) (.07)
From net realized gain (6.60) (3.98) (3.54) (1.45) (.72)
Total distributions (6.60) (3.98) (3.54) (1.48) (.79)
Redemption fees added to paid .07 .05 .08 .11 .04
in capital
Net asset value, end of period $ 27.64 $ 42.14 $ 42.10 $ 32.62 $ 26.77
TOTAL RETURN A, B (22.12)% 9.84% 42.81% 28.28% 29.51%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 29,521 $ 82,879 $ 125,151 $ 42,367 $ 38,994
(000 omitted)
Ratio of expenses to average 1.39% 1.33% 1.45% 1.82% 1.77%
net assets
Ratio of expenses to average 1.36% D 1.31% D 1.43% D 1.77% D 1.74% D
net assets after expense
reductions
Ratio of net investment (.12)% (.10)% .02% .05% .26%
income (loss) to average net
assets
Portfolio turnover rate 107% 72% 157% 142% 164%
</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
LEISURE
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 G 1999 1998 1997 1996 G
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 81.44 $ 62.30 $ 47.83 $ 46.17 $ 40.71
period
Income from Investment
Operations
Net investment income (loss) C (.28) D (.27) (.25) (.06) E (.21)
Net realized and unrealized 11.58 22.78 21.10 4.47 10.97
gain (loss)
Total from investment 11.30 22.51 20.85 4.41 10.76
operations
Less Distributions
From net realized gain (8.15) (3.44) (6.46) (2.83) (5.32)
Redemption fees added to paid .14 .07 .08 .08 .02
in capital
Net asset value, end of period $ 84.73 $ 81.44 $ 62.30 $ 47.83 $ 46.17
TOTAL RETURN A, B 13.89% 37.54% 47.29% 10.14% 27.61%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 314,348 $ 346,139 $ 257,199 $ 98,133 $ 85,013
(000 omitted)
Ratio of expenses to average 1.15% 1.26% 1.44% 1.56% 1.64%
net assets
Ratio of expenses to average 1.12% F 1.24% F 1.39% F 1.54% F 1.63% F
net assets after expense
reductions
Ratio of net investment (.32)% (.40)% (.46)% (.12)% (.46)%
income (loss) to average net
assets
Portfolio turnover rate 120% 107% 209% 127% 141%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM SABRE
HOLDINGS CORP. CLASS A WHICH AMOUNTED TO $.04 PER SHARE.
E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.23 PER SHARE.
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
MEDICAL DELIVERY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 19.08 $ 28.32 $ 28.29 $ 29.00 $ 23.18
period
Income from Investment
Operations
Net investment income (loss) C (.18) (.06) E (.24) (.23) (.03)
Net realized and unrealized (3.61) (7.88) 5.45 2.92 7.72
gain (loss)
Total from investment (3.79) (7.94) 5.21 2.69 7.69
operations
Less Distributions
From net realized gain - (1.21) (5.23) (3.45) (1.91)
In excess of net realized gain - (.13) - - -
Total distributions - (1.34) (5.23) (3.45) (1.91)
Redemption fees added to paid .05 .04 .05 .05 .04
in capital
Net asset value, end of period $ 15.34 $ 19.08 $ 28.32 $ 28.29 $ 29.00
TOTAL RETURN A, B (19.60)% (29.47)% 21.97% 10.50% 34.15%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 45,106 $ 76,842 $ 155,542 $ 192,385 $ 295,489
(000 omitted)
Ratio of expenses to average 1.73% 1.40% 1.57% 1.57% 1.65%
net assets
Ratio of expenses to average 1.67% D 1.37% D 1.53% D 1.53% D 1.62% D
net assets after expense
reductions
Ratio of net investment (1.02)% (.25)% (.88)% (.84)% (.13)%
income (loss) to average net
assets
Portfolio turnover rate 154% 67% 109% 78% 132%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.12 PER SHARE.
F FOR THE YEAR ENDED FEBRUARY 29
MEDICAL EQUIPMENT AND SYSTEMS
Years ended February 28, 2000 G 1999 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 12.10 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) D (.08) (.11)
Net realized and unrealized 3.09 2.18
gain (loss)
Total from investment 3.01 2.07
operations
Less Distributions
From net realized gain (.42) -
Redemption fees added to paid .02 .03
in capital
Net asset value, end of period $ 14.71 $ 12.10
TOTAL RETURN B, C 25.68% 21.00%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 52,030 $ 28,594
(000 omitted)
Ratio of expenses to average 1.66% 2.39% A
net assets
Ratio of expenses to average 1.65% E 2.38% A, E
net assets after expense
reductions
Ratio of net investment (.61)% (1.21)% A
income (loss) to average net
assets
Portfolio turnover rate 101% 85% 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 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.
G FOR THE YEAR ENDED FEBRUARY 29
MULTIMEDIA
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 43.13 $ 33.58 $ 24.91 $ 27.18 $ 22.35
period
Income from Investment
Operations
Net investment income (loss) C (.16) (.19) (.17) .35 D .02
Net realized and unrealized 11.90 11.85 10.30 (1.58) 7.00
gain (loss)
Total from investment 11.74 11.66 10.13 (1.23) 7.02
operations
Less Distributions
From net investment income - - - - (.02)
From net realized gain (1.57) (2.19) (1.52) (1.07) (2.19)
Total distributions (1.57) (2.19) (1.52) (1.07) (2.21)
Redemption fees added to paid .09 .08 .06 .03 .02
in capital
Net asset value, end of period $ 53.39 $ 43.13 $ 33.58 $ 24.91 $ 27.18
TOTAL RETURN A, B 27.62% 36.68% 42.42% (4.52)% 31.98%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 238,612 $ 159,730 $ 115,485 $ 54,171 $ 94,970
(000 omitted)
Ratio of expenses to average 1.17% 1.35% 1.75% 1.60% 1.56%
net assets
Ratio of expenses to average 1.15% E 1.33% E 1.71% E 1.56% E 1.54% E
net assets after expense
reductions
Ratio of net investment (.32)% (.52)% (.59)% 1.33% .08%
income (loss) to average net
assets
Portfolio turnover rate 76% 109% 219% 99% 223%
</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 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
NATURAL GAS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 10.59 $ 13.22 $ 12.50 $ 11.36 $ 8.98
period
Income from Investment
Operations
Net investment income (loss) C .00 .12 D (.05) (.06) .05
Net realized and unrealized 4.68 (2.68) 1.06 1.30 2.36
gain (loss)
Total from investment 4.68 (2.56) 1.01 1.24 2.41
operations
Less Distributions
From net investment income (.09) (.10) - (.01) (.05)
From net realized gain - - (.30) (.29) -
In excess of net realized gain - - (.03) - -
Total distributions (.09) (.10) (.33) (.30) (.05)
Redemption fees added to paid .03 .03 .04 .20 .02
in capital
Net asset value, end of period $ 15.21 $ 10.59 $ 13.22 $ 12.50 $ 11.36
TOTAL RETURN A, B 44.70% (19.17)% 8.74% 12.45% 27.10%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 53,976 $ 36,828 $ 59,866 $ 81,566 $ 60,228
(000 omitted)
Ratio of expenses to average 1.42% 1.57% 1.82% 1.70% 1.68%
net assets
Ratio of expenses to average 1.39% E 1.52% E 1.78% E 1.66% E 1.67% E
net assets after expense
reductions
Ratio of net investment .03% .93% (.37)% (.46)% .46%
income (loss) to average net
assets
Portfolio turnover rate 85% 107% 118% 283% 79%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.10 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
NATURAL RESOURCES
Years ended February 28, 2000 H 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 7.89 $ 10.46 $ 10.00
period
Income from Investment
Operations
Net investment income (loss) D (.02) (.05) (.09)
Net realized and unrealized 3.80 (2.54) .76
gain (loss)
Total from investment 3.78 (2.59) .67
operations
Less Distributions
From net realized gain - - (.26)
Redemption fees added to paid .04 .02 .05
in capital
Net asset value, end of period $ 11.71 $ 7.89 $ 10.46
TOTAL RETURN B, C 48.42% (24.57)% 7.30%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 14,057 $ 5,134 $ 7,520
(000 omitted)
Ratio of expenses to average 1.89% 2.50% F 2.50% A, F
net assets
Ratio of expenses to average 1.85% G 2.47% G 2.48% A, G
net assets after expense
reductions
Ratio of net investment (.17)% (.54)% (.86)% A
income (loss) to average net
assets
Portfolio turnover rate 164% 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.
H FOR THE YEAR ENDED FEBRUARY 29
PAPER AND FOREST PRODUCTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 D 1999 1998 1997 1996 D
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 18.45 $ 22.66 $ 21.63 $ 20.78 $ 21.14
period
Income from Investment
Operations
Net investment income (loss) C .20 (.03) (.12) .01 .08
Net realized and unrealized 3.26 (3.87) 3.13 2.08 1.83
gain (loss)
Total from investment 3.46 (3.90) 3.01 2.09 1.91
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)
In excess of net realized gain - (.44) - - -
Total distributions - (.44) (2.11) (1.35) (2.35)
Redemption fees added to paid .26 .13 .13 .11 .08
in capital
Net asset value, end of period $ 22.17 $ 18.45 $ 22.66 $ 21.63 $ 20.78
TOTAL RETURN A, B 20.16% (17.01)% 15.53% 10.87% 9.18%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 12,412 $ 10,247 $ 31,384 $ 19,484 $ 27,270
(000 omitted)
Ratio of expenses to average 1.89% 2.30% 2.18% 2.19% 1.91%
net assets
Ratio of expenses to average 1.74% E 2.21% E 2.15% E 2.16% E 1.90% E
net assets after expense
reductions
Ratio of net investment .85% (.13)% (.50)% .04% .34%
income (loss) to average net
assets
Portfolio turnover rate 383% 338% 235% 180% 78%
</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 FOR THE YEAR ENDED FEBRUARY 29
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.
RETAILING
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 67.50 $ 50.04 $ 33.25 $ 27.87 $ 23.91
period
Income from Investment
Operations
Net investment income (loss) C (.39) (.28) (.27) (.13) (.14)
Net realized and unrealized (6.72) 18.27 17.14 5.49 4.07
gain (loss)
Total from investment (7.11) 17.99 16.87 5.36 3.93
operations
Less Distributions
From net realized gain (10.13) (.39) (.51) (.08) -
In excess of net realized gain - (.30) - - -
Total distributions (10.13) (.69) (.51) (.08) -
Redemption fees added to paid .16 .16 .43 .10 .03
in capital
Net asset value, end of period $ 50.42 $ 67.50 $ 50.04 $ 33.25 $ 27.87
TOTAL RETURN A, B (12.15)% 36.66% 52.61% 19.59% 16.56%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 75,822 $ 337,513 $ 192,861 $ 59,348 $ 44,051
(000 omitted)
Ratio of expenses to average 1.25% 1.25% 1.63% 1.45% 1.94%
net assets
Ratio of expenses to average 1.20% D 1.22% D 1.55% D 1.39% D 1.92% D
net assets after expense
reductions
Ratio of net investment (.60)% (.50)% (.67)% (.39)% (.53)%
income (loss) to average net
assets
Portfolio turnover rate 88% 165% 308% 278% 235%
</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, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 57.09 $ 44.26 $ 38.58 $ 36.20 $ 29.07
period
Income from Investment
Operations
Net investment income (loss) C (.36) F (.39) (.33) (.25) (.19)
Net realized and unrealized 54.60 14.46 12.57 5.87 11.85
gain (loss)
Total from investment 54.24 14.07 12.24 5.62 11.66
operations
Less distributions from net (6.33) (1.32) (6.61) (3.31) (4.60)
realized gain
Redemption fees added to paid .09 .08 .05 .07 .07
in capital
Net asset value, end of period $ 105.09 $ 57.09 $ 44.26 $ 38.58 $ 36.20
TOTAL RETURN A, B 100.83% 32.57% 35.50% 16.14% 40.17%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,447,686 $ 690,852 $ 503,367 $ 389,699 $ 337,633
(000 omitted)
Ratio of expenses to average 1.11% 1.28% 1.44% 1.54% 1.48%
net assets
Ratio of expenses to average 1.11% 1.27% D 1.42% D 1.51% D 1.47% D
net assets after expense
reductions
Ratio of net investment (.51)% (.82)% (.81)% (.66)% (.54)%
income (loss) to average net
assets
Portfolio turnover rate 59% 72% 145% 279% 183%
</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
F INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM SABRE
HOLDINGS CORP. CLASS A WHICH AMOUNTED TO $.01 PER SHARE.
TECHNOLOGY
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 82.70 $ 53.13 $ 57.70 $ 54.67 $ 42.05
period
Income from Investment
Operations
Net investment income (loss) C (.40) D (.34) (.25) (.39) (.28)
Net realized and unrealized 133.30 29.79 11.29 6.95 20.83
gain (loss)
Total from investment 132.90 29.45 11.04 6.56 20.55
operations
Less Distributions
From net realized gain (19.80) - (12.39) (3.68) (8.05)
In excess of net realized gain - - (3.30) - -
Total distributions (19.80) - (15.69) (3.68) (8.05)
Redemption fees added to paid .12 .12 .08 .15 .12
in capital
Net asset value, end of period $ 195.92 $ 82.70 $ 53.13 $ 57.70 $ 54.67
TOTAL RETURN A, B 184.11% 55.66% 24.92% 12.64% 50.71%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 7,919,951 $ 1,367,148 $ 691,924 $ 478,444 $ 483,026
(000 omitted)
Ratio of expenses to average 1.05% 1.24% 1.38% 1.49% 1.40%
net assets
Ratio of expenses to average 1.04% E 1.20% E 1.30% E 1.44% E 1.39% E
net assets after expense
reductions
Ratio of net investment (.34)% (.54)% (.45)% (.72)% (.52)%
income to average net assets
Portfolio turnover rate 210% 339% 556% 549% 112%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM
KONINKLIJKE PHILIPS ELECTRONICS NV ADR 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
TELECOMMUNICATIONS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 F 1999 1998 1997 1996 F
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 61.85 $ 53.37 $ 41.80 $ 44.87 $ 38.34
period
Income from Investment
Operations
Net investment income (loss) C (.12) (.06) (.25) .12 D .51
Net realized and unrealized 49.58 11.43 18.20 2.92 9.15
gain (loss)
Total from investment 49.46 11.37 17.95 3.04 9.66
operations
Less Distributions
From net investment income - - - (.16) (.39)
From net realized gain (10.48) (2.96) (6.44) (5.98) (2.75)
Total distributions (10.48) (2.96) (6.44) (6.14) (3.14)
Redemption fees added to paid .04 .07 .06 .03 .01
in capital
Net asset value, end of period $ 100.87 $ 61.85 $ 53.37 $ 41.80 $ 44.87
TOTAL RETURN A, B 84.89% 22.21% 46.52% 7.85% 25.79%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,888,217 $ 824,175 $ 643,449 $ 388,535 $ 468,300
(000 omitted)
Ratio of expenses to average 1.12% 1.27% 1.51% 1.51% 1.52%
net assets
Ratio of expenses to average 1.09% E 1.25% E 1.48% E 1.47% E 1.52%
net assets after expense
reductions
Ratio of net investment (.15)% (.11)% (.53)% .27% 1.17%
income (loss) to average net
assets
Portfolio turnover rate 173% 150% 157% 175% 89%
</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 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
TRANSPORTATION
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 25.04 $ 28.34 $ 22.23 $ 21.92 $ 20.53
period
Income from Investment
Operations
Net investment income (loss) C (.14) (.18) (.02) (.13) (.09) D
Net realized and unrealized .93 (.58) 8.85 1.06 2.60
gain (loss)
Total from investment .79 (.76) 8.83 .93 2.51
operations
Less Distributions
From net realized gain (4.97) (2.64) (2.80) (.71) (1.22)
Redemption fees added to paid .10 .10 .08 .09 .10
in capital
Net asset value, end of period $ 20.96 $ 25.04 $ 28.34 $ 22.23 $ 21.92
TOTAL RETURN A, B 2.15% (1.73)% 41.15% 4.67% 12.95%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 10,202 $ 19,855 $ 64,282 $ 8,890 $ 11,445
(000 omitted)
Ratio of expenses to average 1.77% 1.96% 1.58% 2.50% F 2.47% F
net assets
Ratio of expenses to average 1.71% G 1.90% G 1.54% G 2.48% G 2.44% G
net assets after expense
reductions
Ratio of net investment (.54)% (.68)% (.06)% (.58)% (.43)%
income (loss) to average net
assets
Portfolio turnover rate 318% 182% 210% 148% 175%
</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 INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.05 PER SHARE.
E FOR THE YEAR ENDED FEBRUARY 29
F 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.
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.
UTILITIES GROWTH
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 E 1999 1998 1997 1996 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 61.58 $ 53.50 $ 45.97 $ 43.03 $ 34.88
period
Income from Investment
Operations
Net investment income C .48 .44 .54 .73 1.10
Net realized and unrealized 16.46 15.77 14.83 6.41 7.86
gain (loss)
Total from investment 16.94 16.21 15.37 7.14 8.96
operations
Less Distributions
From net investment income (.42) (.25) (.58) (.70) (.84)
From net realized gain (9.30) (7.93) (7.30) (3.54) -
Total distributions (9.72) (8.18) (7.88) (4.24) (.84)
Redemption fees added to paid .03 .05 .04 .04 .03
in capital
Net asset value, end of period $ 68.83 $ 61.58 $ 53.50 $ 45.97 $ 43.03
TOTAL RETURN A, B 29.76% 32.17% 36.20% 18.13% 25.82%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 645,105 $ 507,841 $ 401,927 $ 256,844 $ 266,768
(000 omitted)
Ratio of expenses to average 1.07% 1.18% 1.33% 1.47% 1.39%
net assets
Ratio of expenses to average 1.04% D 1.16% D 1.30% D 1.46% D 1.38% D
net assets after expense
reductions
Ratio of net investment .72% .77% 1.11% 1.73% 2.76%
income to average net assets
Portfolio turnover rate 93% 113% 78% 31% 65%
</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
MONEY MARKET
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Years ended February 28, 2000 D 1999 1998 1997 1996 D
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
period
Income from Investment
Operations
Net interest income .050 .050 .051 .049 .054
Less Distributions
From net interest income (.050) (.050) (.051) (.049) (.054)
Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000
TOTAL RETURN A, B 5.08% 5.08% 5.26% 5.02% 5.56%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 888,869 $ 1,126,174 $ 584,919 $ 848,168 $ 610,821
(000 omitted)
Ratio of expenses to average .48% .50% .56% .56% .59%
net assets
Ratio of expenses to average .48% .49% C .56% .56% .59%
net assets after expense
reductions
Ratio of net interest income 4.95% 5.03% 5.13% 4.92% 5.39%
to average net assets
</TABLE>
A THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIOD SHOWN.
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
D FOR THE 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. In addition, you may visit Fidelity's web site at
www.fidelity.com for a free copy of a prospectus or an annual or
semi-annual report or to request other information.
The SAI, the funds' annual and semi-annual reports and other related
materials are available from the Electronic Data Gathering, Analysis,
and Retrieval (EDGAR) Database on the SEC's web site
(http://www.sec.gov). You can obtain copies of this information, after
paying a duplicating fee, by sending a request by e-mail to
[email protected] or by writing the Public Reference Section of the
SEC, Washington, D.C. 20549-0102. 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 1-202-942-8090 for
information on the operation of the SEC's Public Reference Room.
INVESTMENT COMPANY ACT OF 1940, FILE NUMBER, 811-3114.
Fidelity, Select Portfolios, Fidelity Investments & (Pyramid) Design,
Fidelity Investments, Fidelity Money Line, Fidelity Automatic Account
Builder, Fidelity On-Line Xpress+, and Directed Dividends are
registered trademarks of FMR Corp.
FAST and Portfolio Advisory Services are services marks of FMR Corp.
The third party marks appearing above are the marks of their
respective owners.
1.701898.102 SEL-pro-0400
FIDELITY(registered trademark) SELECT PORTFOLIOS(registered trademark)
STATEMENT OF ADDITIONAL INFORMATION
APRIL 29, 2000
This statement of additional information (SAI) is not a prospectus.
Portions of each fund's annual report are incorporated herein. The
annual report is supplied with this SAI.
To obtain a free additional copy of the prospectus, dated April 29,
2000, or an annual report, please call Fidelity at 1-800-544-8544 or
visit Fidelity's web site at www.fidelity.com.
TABLE OF CONTENTS PAGE
Investment Policies and 87
Limitations
Portfolio Transactions 95
Valuation 118
Performance 118
Additional Purchase, Exchange 215
and Redemption Information
Distributions and Taxes 216
Trustees and Officers 217
Control of Investment Advisers 227
Management Contracts 227
Distribution Services 245
Transfer and Service Agent 255
Agreements
Description of the Trust 260
Financial Statements 261
Appendix 261
(fidelity_logo_graphic)(registered trademark)
82 Devonshire Street, Boston, MA 02109
SEL-ptb-0400
1.474722.102
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in
the prospectus. Unless otherwise noted, whenever an investment policy
or limitation states a maximum percentage of a fund's assets that may
be invested in any security or other asset, or sets forth a policy
regarding quality standards, such standard or percentage limitation
will be determined immediately after and as a result of the fund's
acquisition of such security or other asset. Accordingly, any
subsequent change in values, net assets, or other circumstances will
not be considered when determining whether the investment complies
with the fund's investment policies and limitations.
A fund's fundamental investment policies and limitations cannot be
changed without approval by a "majority of the outstanding voting
securities" (as defined in the Investment Company Act of 1940 (the
1940 Act)) of the fund. However, except for the fundamental investment
limitations listed below, the investment policies and limitations
described in this SAI are not fundamental and may be changed without
shareholder approval.
INVESTMENT LIMITATIONS OF EACH STOCK FUND (EXCEPT BUSINESS SERVICES
AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL
EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO)
THE FOLLOWING ARE THE FUNDS' FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. A FUND MAY NOT:
(1) issue senior securities, except in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise permitted
under the Investment Company Act of 1940;
(2) borrow money, except that a fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed)
less liabilities (other than borrowings). Any borrowings that come to
exceed this amount will be reduced within three days (not including
Sundays and holidays) to the extent necessary to comply with the 33
1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
a fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase or sell the securities of any issuer, if, as a result of
such purchase or sale, less than 25% of the assets of the fund would
be invested in the securities of issuers principally engaged in the
business activities having the specific characteristics denoted by the
fund;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent a fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(6) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent a fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities). This limitation does not apply to Gold
Portfolio (see below); or
(7) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company with substantially the
same fundamental investment objectives, policies, and limitations as
the fund.
ADDITIONAL FUNDAMENTAL INVESTMENT LIMITATIONS OF CERTAIN OF THE STOCK
FUNDS.
GOLD PORTFOLIO MAY NOT:
(1) purchase any precious metal if, as a result, more than 50% of its
total assets would be invested in precious metals; or
(2) purchase or sell physical commodities, provided that the fund may
purchase and sell precious metals, and further provided that the fund
may sell physical commodities acquired as a result of ownership of
securities. The fund may not purchase or sell options, options on
futures contracts, or futures contracts on physical commodities other
than precious metals.
FINANCIAL SERVICES PORTFOLIO, BANKING PORTFOLIO, AND HOME FINANCE
PORTFOLIO MAY NOT:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities, or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer.
THE FOLLOWING ARE NON-FUNDAMENTAL LIMITATIONS FOR EACH STOCK FUND
(EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL
INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND
NATURAL RESOURCES PORTFOLIO), WHICH MAY BE CHANGED WITHOUT SHAREHOLDER
APPROVAL.
(i) For each fund (except Home Finance, Financial Services, and
Banking), in order to qualify as a "regulated investment company"
under Subchapter M of the Internal Revenue Code of 1986, as amended,
the fund currently intends to comply with certain diversification
limits imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that a fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)).
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except (a) by lending money (up to 15% of
a fund's net assets) to a registered investment company or portfolio
for which FMR or an affiliate serves as investment adviser, or (b)
acquiring loans, loan participations, or other forms of direct debt
instruments and, in connection therewith, assuming any associated
unfunded commitments of the sellers. (This limitation does not apply
to purchases of debt securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
with substantially the same fundamental investment objectives,
policies, and limitations as the funds.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets were invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity. For each of Brokerage and Investment
Management and Financial Services, an issuer that derives more than
15% of revenues or profits from brokerage or investment management
activities is considered to be principally engaged in the business
activities identified for the fund.
For purposes of limitations (1) and (2) for Gold Portfolio, FMR
currently intends to treat investments in securities whose redemption
value is indexed to the price of gold or other precious metals as
investments in precious metals.
For the funds' limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 10.
INVESTMENT LIMITATIONS OF BUSINESS SERVICES AND OUTSOURCING PORTFOLIO,
CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS
PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO
THE FOLLOWING ARE THE FUNDS' FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. A FUND MAY NOT:
(1) issue senior securities, except in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise permitted
under the Investment Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary
or emergency purposes (not for leveraging or investment) in an amount
not exceeding 33 1/3% of its total assets (including the amount
borrowed) less liabilities (other than borrowings). Any borrowings
that come to exceed this amount will be reduced within three days (not
including Sundays and holidays) to the extent necessary to comply with
the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that
the fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer if, as a result, less than
25% of the fund's total assets would be invested in the securities of
issuers principally engaged in the business activities having the
specific characteristics denoted by the fund;
(5) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(6) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments (but this shall not
prevent the fund from purchasing or selling options and futures
contracts or from investing in securities or other instruments backed
by physical commodities). This limitation does not apply to Natural
Resources Portfolio (see below); or
(7) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements.
(8) The fund may, notwithstanding any other fundamental investment
policy or limitation, invest all of its assets in the securities of a
single open-end management investment company managed by Fidelity
Management & Research Company or an affiliate or successor with
substantially the same fundamental investment objective, policies, and
limitations as the fund.
NATURAL RESOURCES PORTFOLIO MAY NOT:
(1) purchase or sell physical commodities other than precious metals,
provided that the fund may sell physical commodities acquired as a
result of ownership of securities or other instruments. This
limitation shall not prevent the fund from purchasing or selling
options and futures contracts or from investing in securities or other
instruments backed by physical commodities.
THE FOLLOWING ARE NON-FUNDAMENTAL LIMITS FOR BUSINESS SERVICES AND
OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL
EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO,
WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) For each fund, in order to qualify as a "regulated investment
company" under Subchapter M of the Internal Revenue Code of 1986, as
amended, the fund currently intends to comply with certain
diversification limits imposed by Subchapter M.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund does not currently intend to hedge more than 40% of its
total assets with short sales against the box under normal conditions.
(v) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party (reverse repurchase agreements
are treated as borrowings for purposes of fundamental investment
limitation (2)).
(vi) The fund does not currently intend to purchase any security if,
as a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 15% of
the fund's net assets) to a registered investment company or portfolio
for which Fidelity Management & Research Company or an affiliate
serves as investment adviser, or (b) acquiring loans, loan
participations, or other forms of direct debt instruments and, in
connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
managed by Fidelity Management & Research Company or an affiliate or
successor with substantially the same fundamental investment
objective, policies, and limitations as the fund.
For purposes of limitation (i), Subchapter M generally requires the
fund to invest no more than 25% of its total assets in securities of
any one issuer and to invest at least 50% of its total assets so that
no more than 5% of the fund's total assets are invested in securities
of any one issuer. However, Subchapter M allows unlimited investments
in cash, cash items, government securities (as defined in Subchapter
M) and securities of other investment companies. These tax
requirements are generally applied at the end of each quarter of the
fund's taxable year.
With respect to limitation (vi), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets were invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
For purposes of limitation (4), FMR considers an issuer to be
principally engaged in a business activity if: (i) at least 50% of an
issuer's assets, income, sales or profits are committed to, or derived
from, the business activity, or (ii) a third party has given the
issuer an industry or sector classification consistent with the
designated business activity.
For purposes of limitation (1) for Natural Resources Portfolio, FMR
currently intends to treat investments in securities whose redemption
value is indexed to the price of precious metals as investments in
precious metals.
For the funds' limitations on futures and options transactions, see
the section entitled "Limitations on Futures and Options Transactions"
on page 10.
INVESTMENT LIMITATIONS OF SELECT MONEY MARKET PORTFOLIO (MONEY MARKET
FUND)
THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET
FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) with respect to 75% of the fund's total assets, purchase the
securities of any issuer (other than securities issued or guaranteed
by the U.S. Government or any of its agencies or instrumentalities, or
securities of other investment companies) if, as a result, (a) more
than 5% of the fund's total assets would be invested in the securities
of that issuer, or (b) the fund would hold more than 10% of the
outstanding voting securities of that issuer.
(2) issue senior securities, except in connection with the insurance
program established by the fund pursuant to an exemptive order issued
by the Securities and Exchange Commission or as otherwise permitted
under the Investment Company Act of 1940;
(3) borrow money, except that the fund may (i) borrow money for
temporary or emergency purposes (not for leveraging or investment) and
(ii) engage in reverse repurchase agreements for any purpose; provided
that (i) and (ii) in combination do not exceed 33 1/3% of the fund's
total assets (including the amount borrowed) less liabilities (other
than borrowings). Any borrowings that come to exceed this amount will
be reduced within three days (not including Sundays and holidays) to
the extent necessary to comply with the 33 1/3% limitation;
(4) underwrite securities issued by others, except to the extent that
the fund may be considered an underwriter within the meaning of the
Securities Act of 1933 in the disposition of restricted securities;
(5) purchase the securities of any issuer (other than securities
issued or guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose
principal business activities are in the same industry, except that
the fund will invest more than 25% of its total assets in the
financial services industry;
(6) purchase or sell real estate unless acquired as a result of
ownership of securities or other instruments (but this shall not
prevent the fund from investing in securities or other instruments
backed by real estate or securities of companies engaged in the real
estate business);
(7) purchase or sell physical commodities unless acquired as a result
of ownership of securities or other instruments;
(8) lend any security or make any other loan if, as a result, more
than 33 1/3% of its total assets would be lent to other parties, but
this limitation does not apply to purchases of debt securities or to
repurchase agreements; or
(9) invest in companies for the purpose of exercising control or
management.
(10) In addition the fund may, notwithstanding any other fundamental
investment policy or limitation, invest all of its assets in the
securities of a single open-end management investment company with
substantially the same fundamental investment objectives, policies,
and limitations as the fund.
THE FOLLOWING ARE THE FUND'S NON-FUNDAMENTAL LIMITATIONS WHICH MAY BE
CHANGED WITHOUT SHAREHOLDER APPROVAL.
(i) The fund does not currently intend to purchase a security (other
than securities issued or guaranteed by the U.S. Government or any of
its agencies or instrumentalities, or securities of other money market
funds) if, as a result, more than 5% of its total assets would be
invested in securities of a single issuer; provided that the fund may
invest up to 25% of its total assets in the first tier securities of a
single issuer for up to three business days.
(ii) The fund does not currently intend to sell securities short,
unless it owns or has the right to obtain securities equivalent in
kind and amount to the securities sold short, and provided that
transactions in futures contracts and options are not deemed to
constitute selling securities short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a
registered investment company or portfolio for which FMR or an
affiliate serves as investment adviser or (b) by engaging in reverse
repurchase agreements with any party.
(v) The fund does not currently intend to purchase any security if, as
a result, more than 10% of its net assets would be invested in
securities that are deemed to be illiquid because they are subject to
legal or contractual restrictions on resale or because they cannot be
sold or disposed of in the ordinary course of business at
approximately the prices at which they are valued.
(vi) The fund does not currently intend to purchase physical
commodities or purchase or sell futures contracts based on physical
commodities.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by lending money (up to 15% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser. (This
limitation does not apply to purchases of debt securities or to
repurchase agreements.)
(viii) The fund does not currently intend to invest all of its assets
in the securities of a single open-end management investment company
with substantially the same fundamental investment objective,
policies, and limitations as the fund.
For purposes of limitations (1) and (i), certain securities subject to
guarantees (including insurance, letters of credit and demand
features) are not considered securities of their issuer, but are
subject to separate diversification requirements, in accordance with
industry standard requirements for money market funds.
With respect to limitation (v), if through a change in values, net
assets, or other circumstances, the fund were in a position where more
than 10% of its net assets were invested in illiquid securities, it
would consider appropriate steps to protect liquidity.
BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO. The extent to which the
fund may invest in a company that engages in securities-related
activities is limited by federal securities laws.
FINANCIAL SERVICES PORTFOLIO. The extent to which the fund may invest
in a company that engages in securities-related activities is limited
by federal securities laws.
MULTIMEDIA PORTFOLIO. The extent to which the fund may invest in
corporate broadcast licensees is limited by Federal Communications
Commission regulations.
The following pages contain more detailed information about types of
instruments in which a fund may invest, strategies FMR may employ in
pursuit of a fund's investment objective, and a summary of related
risks. FMR may not buy all of these instruments or use all of these
techniques unless it believes that doing so will help a fund achieve
its goal.
AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with
financial institutions that are, or may be considered to be,
"affiliated persons" of the fund under the 1940 Act. These
transactions may involve repurchase agreements with custodian banks;
short-term obligations of, and repurchase agreements with, the 50
largest U.S. banks (measured by deposits); municipal securities; U.S.
Government securities with affiliated financial institutions that are
primary dealers in these securities; short-term currency transactions;
and short-term borrowings. In accordance with exemptive orders issued
by the Securities and Exchange Commission (SEC), the Board of Trustees
has established and periodically reviews procedures applicable to
transactions involving affiliated financial institutions.
ASSET-BACKED SECURITIES represent interests in pools of mortgages,
loans, receivables or other assets. Payment of interest and repayment
of principal may be largely dependent upon the cash flows generated by
the assets backing the securities and, in certain cases, supported by
letters of credit, surety bonds, or other credit enhancements.
Asset-backed security values may also be affected by other factors
including changes in interest rates, the availability of information
concerning the pool and its structure, the creditworthiness of the
servicing agent for the pool, the originator of the loans or
receivables, or the entities providing the credit enhancement. In
addition, these securities may be subject to prepayment risk.
BORROWING. Each fund may borrow from banks or from other funds advised
by FMR or its affiliates, or through reverse repurchase agreements. If
a fund borrows money, its share price may be subject to greater
fluctuation until the borrowing is paid off. If a fund makes
additional investments while borrowings are outstanding, this may be
considered a form of leverage.
CASH MANAGEMENT. A fund can hold uninvested cash or can invest it in
cash equivalents such as money market securities, repurchase
agreements or shares of money market funds. Generally, these
securities offer less potential for gains than other types of
securities.
CENTRAL CASH FUNDS are money market funds managed by FMR or its
affiliates that seek to earn a high level of current income (free from
federal income tax in the case of a municipal money market fund) while
maintaining a stable $1.00 share price. The funds comply with
industry-standard requirements for money market funds regarding the
quality, maturity, and diversification of their investments.
COMMON STOCK represents an equity or ownership interest in an issuer.
In the event an issuer is liquidated or declares bankruptcy, the
claims of owners of bonds and preferred stock take precedence over the
claims of those who own common stock.
CONVERTIBLE SECURITIES are bonds, debentures, notes, preferred stocks
or other securities that may be converted or exchanged (by the holder
or by the issuer) into shares of the underlying common stock (or cash
or securities of equivalent value) at a stated exchange ratio. A
convertible security may also be called for redemption or conversion
by the issuer after a particular date and under certain circumstances
(including a specified price) established upon issue. If a convertible
security held by a fund is called for redemption or conversion, the
fund could be required to tender it for redemption, convert it into
the underlying common stock, or sell it to a third party.
Convertible securities generally have less potential for gain or loss
than common stocks. Convertible securities generally provide yields
higher than the underlying common stocks, but generally lower than
comparable non-convertible securities. Because of this higher yield,
convertible securities generally sell at prices above their
"conversion value," which is the current market value of the stock to
be received upon conversion. The difference between this conversion
value and the price of convertible securities will vary over time
depending on changes in the value of the underlying common stocks and
interest rates. When the underlying common stocks decline in value,
convertible securities will tend not to decline to the same extent
because of the interest or dividend payments and the repayment of
principal at maturity for certain types of convertible securities.
However, securities that are convertible other than at the option of
the holder generally do not limit the potential for loss to the same
extent as securities convertible at the option of the holder. When the
underlying common stocks rise in value, the value of convertible
securities may also be expected to increase. At the same time,
however, the difference between the market value of convertible
securities and their conversion value will narrow, which means that
the value of convertible securities will generally not increase to the
same extent as the value of the underlying common stocks. Because
convertible securities may also be interest-rate sensitive, their
value may increase as interest rates fall and decrease as interest
rates rise. Convertible securities are also subject to credit risk,
and are often lower-quality securities.
COMPANIES "PRINCIPALLY ENGAGED" IN A DESIGNATED BUSINESS ACTIVITY. For
purposes of each stock fund's policy of investing at least 80% of its
assets in securities of companies principally engaged in the business
activities identified for the fund, FMR considers a company to be
principally engaged in a designated business activity if: (i) at least
50% of a company's assets, income, sales or profits are committed to,
or derived from, the business activity, or (ii) a third party has
given the company an industry or sector classification consistent with
the designated business activity. For each of Brokerage and Investment
Management and Financial Services, an issuer that derives more than
15% of revenues or profits from brokerage or investment management
activities is considered to be principally engaged in the business
activities identified for the fund.
DEBT SECURITIES are used by issuers to borrow money. The issuer
usually pays a fixed, variable or floating rate of interest, and must
repay the amount borrowed at the maturity of the security. Some debt
securities, such as zero coupon bonds, do not pay interest but are
sold at a deep discount from their face values. Debt securities
include corporate bonds, government securities, and mortgage and other
asset-backed securities.
DOMESTIC AND FOREIGN INVESTMENTS (MONEY MARKET FUND ONLY) include U.S.
dollar-denominated time deposits, certificates of deposit, and
bankers' acceptances of U.S. banks and their branches located outside
of the United States, U.S. branches and agencies of foreign banks, and
foreign branches of foreign banks. Domestic and foreign investments
may also include U.S. dollar-denominated securities issued or
guaranteed by other U.S. or foreign issuers, including U.S. and
foreign corporations or other business organizations, foreign
governments, foreign government agencies or instrumentalities, and
U.S. and foreign financial institutions, including savings and loan
institutions, insurance companies, mortgage bankers, and real estate
investment trusts, as well as banks.
The obligations of foreign branches of U.S. banks may be general
obligations of the parent bank in addition to the issuing branch, or
may be limited by the terms of a specific obligation and by
governmental regulation. Payment of interest and repayment of
principal on these obligations may also be affected by governmental
action in the country of domicile of the branch (generally referred to
as sovereign risk). In addition, evidence of ownership of portfolio
securities may be held outside of the United States and a fund may be
subject to the risks associated with the holding of such property
overseas. Various provisions of federal law governing the
establishment and operation of U.S. branches do not apply to foreign
branches of U.S. banks.
Obligations of U.S. branches and agencies of foreign banks may be
general obligations of the parent bank in addition to the issuing
branch, or may be limited by the terms of a specific obligation and by
federal and state regulation, as well as by governmental action in the
country in which the foreign bank has its head office.
Obligations of foreign issuers involve certain additional risks. These
risks may include future unfavorable political and economic
developments, withholding taxes, seizures of foreign deposits,
currency controls, interest limitations, or other governmental
restrictions that might affect repayment of principal or payment of
interest, or the ability to honor a credit commitment. Additionally,
there may be less public information available about foreign entities.
Foreign issuers may be subject to less governmental regulation and
supervision than U.S. issuers. Foreign issuers also generally are not
bound by uniform accounting, auditing, and financial reporting
requirements comparable to those applicable to U.S. issuers.
EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies,
and securities issued by U.S. entities with substantial foreign
operations may involve significant risks in addition to the risks
inherent in U.S. investments.
Foreign investments involve risks relating to local political,
economic, regulatory, or social instability, military action or
unrest, or adverse diplomatic developments, and may be affected by
actions of foreign governments adverse to the interests of U.S.
investors. Such actions may include expropriation or nationalization
of assets, confiscatory taxation, restrictions on U.S. investment or
on the ability to repatriate assets or convert currency into U.S.
dollars, or other government intervention. Additionally, governmental
issuers of foreign debt securities may be unwilling to pay interest
and repay principal when due and may require that the conditions for
payment be renegotiated. There is no assurance that FMR will be able
to anticipate these potential events or counter their effects. In
addition, the value of securities denominated in foreign currencies
and of dividends and interest paid with respect to such securities
will fluctuate based on the relative strength of the U.S. dollar.
It is anticipated that in most cases the best available market for
foreign securities will be on an exchange or in over-the-counter (OTC)
markets located outside of the United States. Foreign stock markets,
while growing in volume and sophistication, are generally not as
developed as those in the United States, and securities of some
foreign issuers may be less liquid and more volatile than securities
of comparable U.S. issuers. Foreign security trading, settlement and
custodial practices (including those involving securities settlement
where fund assets may be released prior to receipt of payment) are
often less developed than those in U.S. markets, and may result in
increased risk or substantial delays in the event of a failed trade or
the insolvency of, or breach of duty by, a foreign broker-dealer,
securities depository or foreign subcustodian. In addition, the costs
associated with foreign investments, including withholding taxes,
brokerage commissions and custodial costs, are generally higher than
with U.S. investments.
Foreign markets may offer less protection to investors than U.S.
markets. Foreign issuers are generally not bound by uniform
accounting, auditing, and financial reporting requirements and
standards of practice comparable to those applicable to U.S. issuers.
Adequate public information on foreign issuers may not be available,
and it may be difficult to secure dividends and information regarding
corporate actions on a timely basis. In general, there is less overall
governmental supervision and regulation of securities exchanges,
brokers, and listed companies than in the United States. OTC markets
tend to be less regulated than stock exchange markets and, in certain
countries, may be totally unregulated. Regulatory enforcement may be
influenced by economic or political concerns, and investors may have
difficulty enforcing their legal rights in foreign countries.
Some foreign securities impose restrictions on transfer within the
United States or to U.S. persons. Although securities subject to such
transfer restrictions may be marketable abroad, they may be less
liquid than foreign securities of the same class that are not subject
to such restrictions.
American Depositary Receipts (ADRs) as well as other "hybrid" forms of
ADRs, including European Depositary Receipts (EDRs) and Global
Depositary Receipts (GDRs), are certificates evidencing ownership of
shares of a foreign issuer. These certificates are issued by
depository banks and generally trade on an established market in the
United States or elsewhere. The underlying shares are held in trust by
a custodian bank or similar financial institution in the issuer's home
country. The depository bank may not have physical custody of the
underlying securities at all times and may charge fees for various
services, including forwarding dividends and interest and corporate
actions. ADRs are alternatives to directly purchasing the underlying
foreign securities in their national markets and currencies. However,
ADRs continue to be subject to many of the risks associated with
investing directly in foreign securities. These risks include foreign
exchange risk as well as the political and economic risks of the
underlying issuer's country.
The risks of foreign investing may be magnified for investments in
emerging markets. Security prices in emerging markets can be
significantly more volatile than those in more developed markets,
reflecting the greater uncertainties of investing in less established
markets and economies. In particular, countries with emerging markets
may have relatively unstable governments, may present the risks of
nationalization of businesses, restrictions on foreign ownership and
prohibitions on the repatriation of assets, and may have less
protection of property rights than more developed countries. The
economies of countries with emerging markets may be based on only a
few industries, may be highly vulnerable to changes in local or global
trade conditions, and may suffer from extreme and volatile debt
burdens or inflation rates. Local securities markets may trade a small
number of securities and may be unable to respond effectively to
increases in trading volume, potentially making prompt liquidation of
holdings difficult or impossible at times.
FOREIGN CURRENCY TRANSACTIONS. A stock fund may conduct foreign
currency transactions on a spot (i.e., cash) or forward basis (i.e.,
by entering into forward contracts to purchase or sell foreign
currencies). Although foreign exchange dealers generally do not charge
a fee for such conversions, they do realize a profit based on the
difference between the prices at which they are buying and selling
various currencies. Thus, a dealer may offer to sell a foreign
currency at one rate, while offering a lesser rate of exchange should
the counterparty desire to resell that currency to the dealer. Forward
contracts are customized transactions that require a specific amount
of a currency to be delivered at a specific exchange rate on a
specific date or range of dates in the future. Forward contracts are
generally traded in an interbank market directly between currency
traders (usually large commercial banks) and their customers. The
parties to a forward contract may agree to offset or terminate the
contract before its maturity, or may hold the contract to maturity and
complete the contemplated currency exchange.
The following discussion summarizes the principal currency management
strategies involving forward contracts that could be used by a fund. A
fund may also use swap agreements, indexed securities, and options and
futures contracts relating to foreign currencies for the same
purposes.
A "settlement hedge" or "transaction hedge" is designed to protect a
fund against an adverse change in foreign currency values between the
date a security is purchased or sold and the date on which payment is
made or received. Entering into a forward contract for the purchase or
sale of the amount of foreign currency involved in an underlying
security transaction for a fixed amount of U.S. dollars "locks in" the
U.S. dollar price of the security. Forward contracts to purchase or
sell a foreign currency may also be used by a fund in anticipation of
future purchases or sales of securities denominated in foreign
currency, even if the specific investments have not yet been selected
by FMR.
A fund may also use forward contracts to hedge against a decline in
the value of existing investments denominated in foreign currency. For
example, if a fund owned securities denominated in pounds sterling, it
could enter into a forward contract to sell pounds sterling in return
for U.S. dollars to hedge against possible declines in the pound's
value. Such a hedge, sometimes referred to as a "position hedge,"
would tend to offset both positive and negative currency fluctuations,
but would not offset changes in security values caused by other
factors. A fund could also hedge the position by selling another
currency expected to perform similarly to the pound sterling. This
type of hedge, sometimes referred to as a "proxy hedge," could offer
advantages in terms of cost, yield, or efficiency, but generally would
not hedge currency exposure as effectively as a direct hedge into U.S.
dollars. Proxy hedges may result in losses if the currency used to
hedge does not perform similarly to the currency in which the hedged
securities are denominated.
A fund may enter into forward contracts to shift its investment
exposure from one currency into another. This may include shifting
exposure from U.S. dollars to a foreign currency, or from one foreign
currency to another foreign currency. This type of strategy, sometimes
known as a "cross-hedge," will tend to reduce or eliminate exposure to
the currency that is sold, and increase exposure to the currency that
is purchased, much as if a fund had sold a security denominated in one
currency and purchased an equivalent security denominated in another.
Cross-hedges protect against losses resulting from a decline in the
hedged currency, but will cause a fund to assume the risk of
fluctuations in the value of the currency it purchases.
Successful use of currency management strategies will depend on FMR's
skill in analyzing currency values. Currency management strategies may
substantially change a fund's investment exposure to changes in
currency exchange rates and could result in losses to a fund if
currencies do not perform as FMR anticipates. For example, if a
currency's value rose at a time when FMR had hedged a fund by selling
that currency in exchange for dollars, a fund would not participate in
the currency's appreciation. If FMR hedges currency exposure through
proxy hedges, a fund could realize currency losses from both the hedge
and the security position if the two currencies do not move in tandem.
Similarly, if FMR increases a fund's exposure to a foreign currency
and that currency's value declines, a fund will realize a loss. There
is no assurance that FMR's use of currency management strategies will
be advantageous to a fund or that it will hedge at appropriate times.
FUNDS' RIGHTS AS SHAREHOLDERS. The funds do not intend to direct or
administer the day-to-day operations of any company. A fund, however,
may exercise its rights as a shareholder and may communicate its views
on important matters of policy to management, the Board of Directors,
and shareholders of a company when FMR determines that such matters
could have a significant effect on the value of the fund's investment
in the company. The activities in which a fund may engage, either
individually or in conjunction with others, may include, among others,
supporting or opposing proposed changes in a company's corporate
structure or business activities; seeking changes in a company's
directors or management; seeking changes in a company's direction or
policies; seeking the sale or reorganization of the company or a
portion of its assets; or supporting or opposing third-party takeover
efforts. This area of corporate activity is increasingly prone to
litigation and it is possible that a fund could be involved in
lawsuits related to such activities. FMR will monitor such activities
with a view to mitigating, to the extent possible, the risk of
litigation against a fund and the risk of actual liability if a fund
is involved in litigation. No guarantee can be made, however, that
litigation against a fund will not be undertaken or liabilities
incurred.
FUTURES AND OPTIONS. The following paragraphs pertain to futures and
options: Combined Positions, Correlation of Price Changes, Futures
Contracts, Futures Margin Payments, Limitations on Futures and Options
Transactions, Liquidity of Options and Futures Contracts, Options and
Futures Relating to Foreign Currencies, OTC Options, Purchasing Put
and Call Options, and Writing Put and Call Options.
COMBINED POSITIONS involve purchasing and writing options in
combination with each other, or in combination with futures or forward
contracts, to adjust the risk and return characteristics of the
overall position. For example, purchasing a put option and writing a
call option on the same underlying instrument would construct a
combined position whose risk and return characteristics are similar to
selling a futures contract. Another possible combined position would
involve writing a call option at one strike price and buying a call
option at a lower price, to reduce the risk of the written call option
in the event of a substantial price increase. Because combined options
positions involve multiple trades, they result in higher transaction
costs and may be more difficult to open and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of
types of exchange-traded options and futures contracts, it is likely
that the standardized contracts available will not match a fund's
current or anticipated investments exactly. A fund may invest in
options and futures contracts based on securities with different
issuers, maturities, or other characteristics from the securities in
which the fund typically invests, which involves a risk that the
options or futures position will not track the performance of the
fund's other investments.
Options and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match a
fund's investments well. Options and futures prices are affected by
such factors as current and anticipated short-term interest rates,
changes in volatility of the underlying instrument, and the time
remaining until expiration of the contract, which may not affect
security prices the same way. Imperfect correlation may also result
from differing levels of demand in the options and futures markets and
the securities markets, from structural differences in how options and
futures and securities are traded, or from imposition of daily price
fluctuation limits or trading halts. A fund may purchase or sell
options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to
attempt to compensate for differences in volatility between the
contract and the securities, although this may not be successful in
all cases. If price changes in a fund's options or futures positions
are poorly correlated with its other investments, the positions may
fail to produce anticipated gains or result in losses that are not
offset by gains in other investments.
FUTURES CONTRACTS. In purchasing a futures contract, the buyer agrees
to purchase a specified underlying instrument at a specified future
date. In selling a futures contract, the seller agrees to sell a
specified underlying instrument at a specified future date. The price
at which the purchase and sale will take place is fixed when the buyer
and seller enter into the contract. Some currently available futures
contracts are based on specific securities, such as U.S. Treasury
bonds or notes, and some are based on indices of securities prices,
such as the Standard & Poor's 500 Index SM (S&P 500). Futures can be
held until their delivery dates, or can be closed out before then if a
liquid secondary market is available.
The value of a futures contract tends to increase and decrease in
tandem with the value of its underlying instrument. Therefore,
purchasing futures contracts will tend to increase a fund's exposure
to positive and negative price fluctuations in the underlying
instrument, much as if it had purchased the underlying instrument
directly. When a fund sells a futures contract, by contrast, the value
of its futures position will tend to move in a direction contrary to
the market. Selling futures contracts, therefore, will tend to offset
both positive and negative market price changes, much as if the
underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract
is not required to deliver or pay for the underlying instrument unless
the contract is held until the delivery date. However, both the
purchaser and seller are required to deposit "initial margin" with a
futures broker, known as a futures commission merchant (FCM), when the
contract is entered into. Initial margin deposits are typically equal
to a percentage of the contract's value. If the value of either
party's position declines, that party will be required to make
additional "variation margin" payments to settle the change in value
on a daily basis. The party that has a gain may be entitled to receive
all or a portion of this amount. Initial and variation margin payments
do not constitute purchasing securities on margin for purposes of a
fund's investment limitations. In the event of the bankruptcy of an
FCM that holds margin on behalf of a fund, the fund may be entitled to
return of margin owed to it only in proportion to the amount received
by the FCM's other customers, potentially resulting in losses to the
fund.
LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each stock fund has
filed a notice of eligibility for exclusion from the definition of the
term "commodity pool operator" with the Commodity Futures Trading
Commission (CFTC) and the National Futures Association, which regulate
trading in the futures markets. The funds intend to comply with Rule
4.5 under the Commodity Exchange Act, which limits the extent to which
the funds can commit assets to initial margin deposits and option
premiums.
In addition, each stock fund will not: (a) sell futures contracts,
purchase put options, or write call options if, as a result, more than
25% of the fund's total assets would be hedged with futures and
options under normal conditions; (b) purchase futures contracts or
write put options if, as a result, the fund's total obligations upon
settlement or exercise of purchased futures contracts and written put
options would exceed 25% of its total assets under normal conditions;
or (c) purchase call options if, as a result, the current value of
option premiums for call options purchased by the fund would exceed 5%
of the fund's total assets. These limitations do not apply to options
attached to or acquired or traded together with their underlying
securities, and do not apply to securities that incorporate features
similar to options.
The above limitations on the stock funds' investments in futures
contracts and options, and the funds' policies regarding futures
contracts and options discussed elsewhere in this SAI may be changed
as regulatory agencies permit.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a
liquid secondary market will exist for any particular options or
futures contract at any particular time. Options may have relatively
low trading volume and liquidity if their strike prices are not close
to the underlying instrument's current price. In addition, exchanges
may establish daily price fluctuation limits for options and futures
contracts, and may halt trading if a contract's price moves upward or
downward more than the limit in a given day. On volatile trading days
when the price fluctuation limit is reached or a trading halt is
imposed, it may be impossible to enter into new positions or close out
existing positions. If the secondary market for a contract is not
liquid because of price fluctuation limits or otherwise, it could
prevent prompt liquidation of unfavorable positions, and potentially
could require a fund to continue to hold a position until delivery or
expiration regardless of changes in its value. As a result, a fund's
access to other assets held to cover its options or futures positions
could also be impaired.
OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures
contracts are similar to forward currency exchange contracts, except
that they are traded on exchanges (and have margin requirements) and
are standardized as to contract size and delivery date. Most currency
futures contracts call for payment or delivery in U.S. dollars. The
underlying instrument of a currency option may be a foreign currency,
which generally is purchased or delivered in exchange for U.S.
dollars, or may be a futures contract. The purchaser of a currency
call obtains the right to purchase the underlying currency, and the
purchaser of a currency put obtains the right to sell the underlying
currency.
The uses and risks of currency options and futures are similar to
options and futures relating to securities or indices, as discussed
above. A fund may purchase and sell currency futures and may purchase
and write currency options to increase or decrease its exposure to
different foreign currencies. Currency options may also be purchased
or written in conjunction with each other or with currency futures or
forward contracts. Currency futures and options values can be expected
to correlate with exchange rates, but may not reflect other factors
that affect the value of a fund's investments. A currency hedge, for
example, should protect a Yen-denominated security from a decline in
the Yen, but will not protect a fund against a price decline resulting
from deterioration in the issuer's creditworthiness. Because the value
of a fund's foreign-denominated investments changes in response to
many factors other than exchange rates, it may not be possible to
match the amount of currency options and futures to the value of the
fund's investments exactly over time.
OTC OPTIONS. Unlike exchange-traded options, which are standardized
with respect to the underlying instrument, expiration date, contract
size, and strike price, the terms of OTC options (options not traded
on exchanges) generally are established through negotiation with the
other party to the option contract. While this type of arrangement
allows the purchaser or writer greater flexibility to tailor an option
to its needs, OTC options generally involve greater credit risk than
exchange-traded options, which are guaranteed by the clearing
organization of the exchanges where they are traded.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, the
purchaser obtains the right (but not the obligation) to sell the
option's underlying instrument at a fixed strike price. In return for
this right, the purchaser pays the current market price for the option
(known as the option premium). Options have various types of
underlying instruments, including specific securities, indices of
securities prices, and futures contracts. The purchaser may terminate
its position in a put option by allowing it to expire or by exercising
the option. If the option is allowed to expire, the purchaser will
lose the entire premium. If the option is exercised, the purchaser
completes the sale of the underlying instrument at the strike price. A
purchaser may also terminate a put option position by closing it out
in the secondary market at its current price, if a liquid secondary
market exists.
The buyer of a typical put option can expect to realize a gain if
security prices fall substantially. However, if the underlying
instrument's price does not fall enough to offset the cost of
purchasing the option, a put buyer can expect to suffer a loss
(limited to the amount of the premium, plus related transaction
costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right
to purchase, rather than sell, the underlying instrument at the
option's strike price. A call buyer typically attempts to participate
in potential price increases of the underlying instrument with risk
limited to the cost of the option if security prices fall. At the same
time, the buyer can expect to suffer a loss if security prices do not
rise sufficiently to offset the cost of the option.
WRITING PUT AND CALL OPTIONS. The writer of a put or call option takes
the opposite side of the transaction from the option's purchaser. In
return for receipt of the premium, the writer assumes the obligation
to pay the strike price for the option's underlying instrument if the
other party to the option chooses to exercise it. The writer may seek
to terminate a position in a put option before exercise by closing out
the option in the secondary market at its current price. If the
secondary market is not liquid for a put option, however, the writer
must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes. When writing an option on
a futures contract, a fund will be required to make margin payments to
an FCM as described above for futures contracts.
If security prices rise, a put writer would generally expect to
profit, although its gain would be limited to the amount of the
premium it received. If security prices remain the same over time, it
is likely that the writer will also profit, because it should be able
to close out the option at a lower price. If security prices fall, the
put writer would expect to suffer a loss. This loss should be less
than the loss from purchasing the underlying instrument directly,
however, because the premium received for writing the option should
mitigate the effects of the decline.
Writing a call option obligates the writer to sell or deliver the
option's underlying instrument, in return for the strike price, upon
exercise of the option. The characteristics of writing call options
are similar to those of writing put options, except that writing calls
generally is a profitable strategy if prices remain the same or fall.
Through receipt of the option premium, a call writer mitigates the
effects of a price decline. At the same time, because a call writer
must be prepared to deliver the underlying instrument in return for
the strike price, even if its current value is greater, a call writer
gives up some ability to participate in security price increases.
ILLIQUID SECURITIES cannot be sold or disposed of in the ordinary
course of business at approximately the prices at which they are
valued. Difficulty in selling securities may result in a loss or may
be costly to a fund. Under the supervision of the Board of Trustees,
FMR determines the liquidity of a fund's investments and, through
reports from FMR, the Board monitors investments in illiquid
securities. In determining the liquidity of a fund's investments, FMR
may consider various factors, including (1) the frequency and volume
of trades and quotations, (2) the number of dealers and prospective
purchasers in the marketplace, (3) dealer undertakings to make a
market, and (4) the nature of the security and the market in which it
trades (including any demand, put or tender features, the mechanics
and other requirements for transfer, any letters of credit or other
credit enhancement features, any ratings, the number of holders, the
method of soliciting offers, the time required to dispose of the
security, and the ability to assign or offset the rights and
obligations of the security).
INDEXED SECURITIES are instruments whose prices are indexed to the
prices of other securities, securities indices, currencies, precious
metals or other commodities, or other financial indicators. Indexed
securities typically, but not always, are debt securities or deposits
whose value at maturity or coupon rate is determined by reference to a
specific instrument or statistic.
Gold-indexed securities typically provide for a maturity value that
depends on the price of gold, resulting in a security whose price
tends to rise and fall together with gold prices. Currency-indexed
securities typically are short-term to intermediate-term debt
securities whose maturity values or interest rates are determined by
reference to the values of one or more specified foreign currencies,
and may offer higher yields than U.S. dollar-denominated securities.
Currency-indexed securities may be positively or negatively indexed;
that is, their maturity value may increase when the specified currency
value increases, resulting in a security that performs similarly to a
foreign-denominated instrument, or their maturity value may decline
when foreign currencies increase, resulting in a security whose price
characteristics are similar to a put on the underlying currency.
Currency-indexed securities may also have prices that depend on the
values of a number of different foreign currencies relative to each
other.
The performance of indexed securities depends to a great extent on the
performance of the security, currency, or other instrument to which
they are indexed, and may also be influenced by interest rate changes
in the United States and abroad. Indexed securities may be more
volatile than the underlying instruments. Indexed securities are also
subject to the credit risks associated with the issuer of the
security, and their values may decline substantially if the issuer's
creditworthiness deteriorates. Recent issuers of indexed securities
have included banks, corporations, and certain U.S. Government
agencies.
Gold Portfolio and Natural Resources Portfolio may purchase securities
indexed to the price of precious metals as an alternative to direct
investment in precious metals. Because the value of these securities
is directly linked to the price of gold or other precious metals, they
involve risks and pricing characteristics similar to direct
investments in precious metals. The funds will purchase precious
metals-indexed securities only when FMR is satisfied with the
creditworthiness of the issuers liable for payment. The securities
generally will earn a nominal rate of interest while held by the
funds, and may have maturities of one year or more. In addition, the
securities may be subject to being put by a fund to the issuer, with
payment to be received on no more than seven days' notice. The put
feature would ensure the liquidity of the notes in the absence of an
active secondary market.
INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive
order issued by the SEC, a fund may lend money to, and borrow money
from, other funds advised by FMR or its affiliates. A fund will lend
through the program only when the returns are higher than those
available from an investment in repurchase agreements, and will borrow
through the program only when the costs are equal to or lower than the
cost of bank loans. Interfund loans and borrowings normally extend
overnight, but can have a maximum duration of seven days. Loans may be
called on one day's notice. A fund may have to borrow from a bank at a
higher interest rate if an interfund loan is called or not renewed.
Any delay in repayment to a lending fund could result in a lost
investment opportunity or additional borrowing costs.
INVESTMENT-GRADE DEBT SECURITIES. Investment-grade debt securities are
medium and high-quality securities. Some may possess speculative
characteristics and may be more sensitive to economic changes and to
changes in the financial conditions of issuers. A debt security is
considered to be investment-grade if it is rated investment-grade by
Moody's Investors Service, Standard & Poor's, Duff & Phelps Credit
Rating Co., or Fitch IBCA Inc., or is unrated but considered to be of
equivalent quality by FMR.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS. Direct debt instruments are
interests in amounts owed by a corporate, governmental, or other
borrower to lenders or lending syndicates (loans and loan
participations), to suppliers of goods or services (trade claims or
other receivables), or to other parties. Direct debt instruments
involve a risk of loss in case of default or insolvency of the
borrower and may offer less legal protection to the purchaser in the
event of fraud or misrepresentation, or there may be a requirement
that a fund supply additional cash to a borrower on demand.
Purchasers of loans and other forms of direct indebtedness depend
primarily upon the creditworthiness of the borrower for payment of
interest and repayment of principal. If scheduled interest or
principal payments are not made, the value of the instrument may be
adversely affected. Loans that are fully secured provide more
protections than an unsecured loan in the event of failure to make
scheduled interest or principal payments. However, there is no
assurance that the liquidation of collateral from a secured loan would
satisfy the borrower's obligation, or that the collateral could be
liquidated. Indebtedness of borrowers whose creditworthiness is poor
involves substantially greater risks and may be highly speculative.
Borrowers that are in bankruptcy or restructuring may never pay off
their indebtedness, or may pay only a small fraction of the amount
owed. Direct indebtedness of developing countries also involves a risk
that the governmental entities responsible for the repayment of the
debt may be unable, or unwilling, to pay interest and repay principal
when due.
Investments in loans through direct assignment of a financial
institution's interests with respect to a loan may involve additional
risks. For example, if a loan is foreclosed, the purchaser could
become part owner of any collateral, and would bear the costs and
liabilities associated with owning and disposing of the collateral. In
addition, it is conceivable that under emerging legal theories of
lender liability, a purchaser could be held liable as a co-lender.
Direct debt instruments may also involve a risk of insolvency of the
lending bank or other intermediary.
A loan is often administered by a bank or other financial institution
that acts as agent for all holders. The agent administers the terms of
the loan, as specified in the loan agreement. Unless, under the terms
of the loan or other indebtedness, the purchaser has direct recourse
against the borrower, the purchaser may have to rely on the agent to
apply appropriate credit remedies against a borrower. If assets held
by the agent for the benefit of a purchaser were determined to be
subject to the claims of the agent's general creditors, the purchaser
might incur certain costs and delays in realizing payment on the loan
or loan participation and could suffer a loss of principal or
interest.
Direct indebtedness may include letters of credit, revolving credit
facilities, or other standby financing commitments that obligate
purchasers to make additional cash payments on demand. These
commitments may have the effect of requiring a purchaser to increase
its investment in a borrower at a time when it would not otherwise
have done so, even if the borrower's condition makes it unlikely that
the amount will ever be repaid.
Each fund limits the amount of total assets that it will invest in any
one issuer or in issuers within the same industry (see each fund's
investment limitations). For purposes of these limitations, a fund
generally will treat the borrower as the "issuer" of indebtedness held
by the fund. In the case of loan participations where a bank or other
lending institution serves as financial intermediary between a fund
and the borrower, if the participation does not shift to the fund the
direct debtor-creditor relationship with the borrower, SEC
interpretations require a fund, in appropriate circumstances, to treat
both the lending bank or other lending institution and the borrower as
"issuers" for these purposes. Treating a financial intermediary as an
issuer of indebtedness may restrict a fund's ability to invest in
indebtedness related to a single financial intermediary, or a group of
intermediaries engaged in the same industry, even if the underlying
borrowers represent many different companies and industries.
LOWER-QUALITY DEBT SECURITIES. Lower-quality debt securities have poor
protection with respect to the payment of interest and repayment of
principal, or may be in default. These securities are often considered
to be speculative and involve greater risk of loss or price changes
due to changes in the issuer's capacity to pay. The market prices of
lower-quality debt securities may fluctuate more than those of
higher-quality debt securities and may decline significantly in
periods of general economic difficulty, which may follow periods of
rising interest rates.
The market for lower-quality debt securities may be thinner and less
active than that for higher-quality debt securities, which can
adversely affect the prices at which the former are sold. Adverse
publicity and changing investor perceptions may affect the liquidity
of lower-quality debt securities and the ability of outside pricing
services to value lower-quality debt securities.
Because the risk of default is higher for lower-quality debt
securities, FMR's research and credit analysis are an especially
important part of managing securities of this type. FMR will attempt
to identify those issuers of high-yielding securities whose financial
condition is adequate to meet future obligations, has improved, or is
expected to improve in the future. FMR's analysis focuses on relative
values based on such factors as interest or dividend coverage, asset
coverage, earnings prospects, and the experience and managerial
strength of the issuer.
A fund may choose, at its expense or in conjunction with others, to
pursue litigation or otherwise to exercise its rights as a security
holder to seek to protect the interests of security holders if it
determines this to be in the best interest of the fund's shareholders.
MONEY MARKET INSURANCE. The money market fund participates in a mutual
insurance company solely with other funds advised by FMR or its
affiliates. This company provides insurance coverage for losses on
certain money market instruments held by a participating fund
(eligible instruments), including losses from nonpayment of principal
or interest or a bankruptcy or insolvency of the issuer or credit
support provider, if any. The insurance does not cover losses
resulting from changes in interest rates or other market developments.
The money market fund is charged an annual premium for the insurance
coverage and may be subject to a special assessment of up to
approximately two and one-half times the fund's annual gross premium
if covered losses exceed certain levels. A participating fund may
recover no more than $100 million annually, including all other claims
of insured funds, and may only recover if the amount of the loss
exceeds 0.30% of its eligible instruments. The money market fund may
incur losses regardless of the insurance.
MONEY MARKET SECURITIES are high-quality, short-term obligations.
Money market securities may be structured to be, or may employ a trust
or other form so that they are, eligible investments for money market
funds. For example, put features can be used to modify the maturity of
a security or interest rate adjustment features can be used to enhance
price stability. If a structure fails to function as intended, adverse
tax or investment consequences may result. Neither the Internal
Revenue Service (IRS) nor any other regulatory authority has ruled
definitively on certain legal issues presented by certain structured
securities. Future tax or other regulatory determinations could
adversely affect the value, liquidity, or tax treatment of the income
received from these securities or the nature and timing of
distributions made by the fund.
MUNICIPAL SECURITIES are issued to raise money for a variety of public
or private purposes, including general financing for state and local
governments, or financing for specific projects or public facilities.
They may be issued in anticipation of future revenues and may be
backed by the full taxing power of a municipality, the revenues from a
specific project, or the credit of a private organization. The value
of some or all municipal securities may be affected by uncertainties
in the municipal market related to legislation or litigation involving
the taxation of municipal securities or the rights of municipal
securities holders. A municipal security may be owned directly or
through a participation interest.
PRECIOUS METALS. Precious metals, such as gold, silver, platinum and
palladium, at times have been subject to substantial price
fluctuations over short periods of time and may be affected by
unpredictable monetary and political policies such as currency
devaluations or revaluations, economic and social conditions within a
country, trade imbalances, or trade or currency restrictions between
countries. The prices of gold and other precious metals, however, are
less subject to local and company-specific factors than securities of
individual companies. As a result, precious metals may be more or less
volatile in price than securities of companies engaged in precious
metals-related businesses. Investments in precious metals can present
concerns such as delivery, storage and maintenance, possible
illiquidity, and the unavailability of accurate market valuations.
Although precious metals can be purchased in any form, including
bullion and coins, FMR intends to purchase only those forms of
precious metals that are readily marketable and that can be stored in
accordance with custody regulations applicable to mutual funds. A fund
may incur higher custody and transaction costs for precious metals
than for securities. Also, precious metals investments do not pay
income.
For a fund to qualify as a regulated investment company under current
federal tax law, gains from selling precious metals may not exceed 10%
of the fund's gross income for its taxable year. This tax requirement
could cause a fund to hold or sell precious metals or securities when
it would not otherwise do so.
PREFERRED STOCK represents an equity or ownership interest in an
issuer that pays dividends at a specified rate and that has precedence
over common stock in the payment of dividends. In the event an issuer
is liquidated or declares bankruptcy, the claims of owners of bonds
take precedence over the claims of those who own preferred and common
stock.
PUT FEATURES entitle the holder to sell a security back to the issuer
or a third party at any time or at specified intervals. In exchange
for this benefit, a fund may accept a lower interest rate. Securities
with put features are subject to the risk that the put provider is
unable to honor the put feature (purchase the security). Put providers
often support their ability to buy securities on demand by obtaining
letters of credit or other guarantees from other entities. Demand
features, standby commitments, and tender options are types of put
features.
REAL ESTATE INVESTMENT TRUSTS. Equity real estate investment trusts
own real estate properties, while mortgage real estate investment
trusts make construction, development, and long-term mortgage loans.
Their value may be affected by changes in the value of the underlying
property of the trusts, the creditworthiness of the issuer, property
taxes, interest rates, and tax and regulatory requirements, such as
those relating to the environment. Both types of trusts are dependent
upon management skill, are not diversified, and are subject to heavy
cash flow dependency, defaults by borrowers, self-liquidation, and the
possibility of failing to qualify for tax-free status of income under
the Internal Revenue Code and failing to maintain exemption from the
1940 Act.
REPURCHASE AGREEMENTS involve an agreement to purchase a security and
to sell that security back to the original seller at an agreed-upon
price. The resale price reflects the purchase price plus an
agreed-upon incremental amount which is unrelated to the coupon rate
or maturity of the purchased security. As protection against the risk
that the original seller will not fulfill its obligation, the
securities are held in a separate account at a bank, marked-to-market
daily, and maintained at a value at least equal to the sale price plus
the accrued incremental amount. The value of the security purchased
may be more or less than the price at which the counterparty has
agreed to purchase the security. In addition, delays or losses could
result if the other party to the agreement defaults or becomes
insolvent. The funds will engage in repurchase agreement transactions
with parties whose creditworthiness has been reviewed and found
satisfactory by FMR.
RESTRICTED SECURITIES are subject to legal restrictions on their sale.
Difficulty in selling securities may result in a loss or be costly to
a fund. Restricted securities generally can be sold in privately
negotiated transactions, pursuant to an exemption from registration
under the Securities Act of 1933, or in a registered public offering.
Where registration is required, the holder of a registered security
may be obligated to pay all or part of the registration expense and a
considerable period may elapse between the time it decides to seek
registration and the time it may be permitted to sell a security under
an effective registration statement. If, during such a period, adverse
market conditions were to develop, the holder might obtain a less
favorable price than prevailed when it decided to seek registration of
the security.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a
fund sells a security to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase that
security at an agreed-upon price and time. The funds will enter into
reverse repurchase agreements with parties whose creditworthiness has
been reviewed and found satisfactory by FMR. Such transactions may
increase fluctuations in the market value of fund assets and a fund's
yield and may be viewed as a form of leverage.
SECURITIES OF OTHER INVESTMENT COMPANIES, including shares of
closed-end investment companies, unit investment trusts, and open-end
investment companies, represent interests in professionally managed
portfolios that may invest in any type of instrument. Investing in
other investment companies involves substantially the same risks as
investing directly in the underlying instruments, but may involve
additional expenses at the investment company-level, such as portfolio
management fees and operating expenses. Certain types of investment
companies, such as closed-end investment companies, issue a fixed
number of shares that trade on a stock exchange or over-the-counter at
a premium or a discount to their net asset value. Others are
continuously offered at net asset value, but may also be traded in the
secondary market.
The extent to which a fund can invest in securities of other
investment companies is limited by federal securities laws.
SECURITIES LENDING. A fund may lend securities to parties such as
broker-dealers or other institutions, including Fidelity Brokerage
Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange
(NYSE) and a subsidiary of FMR Corp.
Securities lending allows a fund to retain ownership of the securities
loaned and, at the same time, earn additional income. The borrower
provides the fund with collateral in an amount at least equal to the
value of the securities loaned. The fund maintains the ability to
obtain the right to vote or consent on proxy proposals involving
material events affecting securities loaned. If the borrower defaults
on its obligation to return the securities loaned because of
insolvency or other reasons, a fund could experience delays and costs
in recovering the securities loaned or in gaining access to the
collateral. These delays and costs could be greater for foreign
securities. If a fund is not able to recover the securities loaned, a
fund may sell the collateral and purchase a replacement investment in
the market. The value of the collateral could decrease below the value
of the replacement investment by the time the replacement investment
is purchased. Loans will be made only to parties deemed by FMR to be
in good standing and when, in FMR's judgment, the income earned would
justify the risks.
Cash received as collateral through loan transactions may be invested
in other eligible securities. Investing this cash subjects that
investment, as well as the securities loaned, to market appreciation
or depreciation.
SHORT SALES "AGAINST THE BOX" are short sales of securities that a
fund owns or has the right to obtain (equivalent in kind or amount to
the securities sold short). If a fund enters into a short sale against
the box, it will be required to set aside securities equivalent in
kind and amount to the securities sold short (or securities
convertible or exchangeable into such securities) and will be required
to hold such securities while the short sale is outstanding.
Short sales against the box could be used to protect the net asset
value per share (NAV) of a money market fund in anticipation of
increased interest rates, without sacrificing the current yield of the
securities sold short. A money market fund will incur transaction
costs in connection with opening and closing short sales against the
box. A stock fund will incur transaction costs, including interest
expenses, in connection with opening, maintaining, and closing short
sales against the box.
SOURCES OF LIQUIDITY OR CREDIT SUPPORT. Issuers may employ various
forms of credit and liquidity enhancements, including letters of
credit, guarantees, puts, and demand features, and insurance provided
by domestic or foreign entities such as banks and other financial
institutions. FMR may rely on its evaluation of the credit of the
liquidity or credit enhancement provider in determining whether to
purchase a security supported by such enhancement. In evaluating the
credit of a foreign bank or other foreign entities, FMR will consider
whether adequate public information about the entity is available and
whether the entity may be subject to unfavorable political or economic
developments, currency controls, or other government restrictions that
might affect its ability to honor its commitment. Changes in the
credit quality of the entity providing the enhancement could affect
the value of the security or a fund's share price.
STRIPPED SECURITIES are the separate income or principal components of
a debt security. The risks associated with stripped securities are
similar to those of other money market securities, although stripped
securities may be more volatile. U.S. Treasury securities that have
been stripped by a Federal Reserve Bank are obligations issued by the
U.S. Treasury.
Privately stripped government securities are created when a dealer
deposits a U.S. Treasury security or other U.S. Government security
with a custodian for safekeeping. The custodian issues separate
receipts for the coupon payments and the principal payment, which the
dealer then sells.
Because the SEC does not consider privately stripped government
securities to be U.S. Government securities for purposes of Rule 2a-7,
a fund must evaluate them as it would non-government securities
pursuant to regulatory guidelines applicable to money market funds.
SWAP AGREEMENTS can be individually negotiated and structured to
include exposure to a variety of different types of investments or
market factors. Depending on their structure, swap agreements may
increase or decrease a fund's exposure to long- or short-term interest
rates (in the United States or abroad), foreign currency values,
mortgage securities, corporate borrowing rates, or other factors such
as security prices or inflation rates. Swap agreements can take many
different forms and are known by a variety of names.
In a typical cap or floor agreement, one party agrees to make payments
only under specified circumstances, usually in return for payment of a
fee by the other party. For example, the buyer of an interest rate cap
obtains the right to receive payments to the extent that a specified
interest rate exceeds an agreed-upon level, while the seller of an
interest rate floor is obligated to make payments to the extent that a
specified interest rate falls below an agreed-upon level. An interest
rate collar combines elements of buying a cap and selling a floor.
Swap agreements will tend to shift a fund's investment exposure from
one type of investment to another. For example, if the fund agreed to
exchange payments in dollars for payments in foreign currency, the
swap agreement would tend to decrease the fund's exposure to U.S.
interest rates and increase its exposure to foreign currency and
interest rates. Caps and floors have an effect similar to buying or
writing options. Depending on how they are used, swap agreements may
increase or decrease the overall volatility of a fund's investments
and its share price.
The most significant factor in the performance of swap agreements is
the change in the specific interest rate, currency, or other factors
that determine the amounts of payments due to and from a fund. If a
swap agreement calls for payments by the fund, the fund must be
prepared to make such payments when due. In addition, if the
counterparty's creditworthiness declined, the value of a swap
agreement would be likely to decline, potentially resulting in losses.
A fund may be able to eliminate its exposure under a swap agreement
either by assignment or other disposition, or by entering into an
offsetting swap agreement with the same party or a similarly
creditworthy party.
TEMPORARY DEFENSIVE POLICIES. 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.
Each of Business Services and Outsourcing, Cyclical Industries,
Medical Equipment and Systems and Natural Resources reserves the right
to invest without limitation in preferred stocks and investment-grade
debt instruments for temporary, defensive purposes.
VARIABLE AND FLOATING RATE SECURITIES provide for periodic adjustments
in the interest rate paid on the security. Variable rate securities
provide for a specified periodic adjustment in the interest rate,
while floating rate securities have interest rates that change
whenever there is a change in a designated benchmark rate. Some
variable or floating rate securities are structured with put features
that permit holders to demand payment of the unpaid principal balance
plus accrued interest from the issuers or certain financial
intermediaries.
WARRANTS. Warrants are instruments which entitle the holder to buy an
equity security at a specific price for a specific period of time.
Changes in the value of a warrant do not necessarily correspond to
changes in the value of its underlying security. The price of a
warrant may be more volatile than the price of its underlying
security, and a warrant may offer greater potential for capital
appreciation as well as capital loss.
Warrants do not entitle a holder to dividends or voting rights with
respect to the underlying security and do not represent any rights in
the assets of the issuing company. A warrant ceases to have value if
it is not exercised prior to its expiration date. These factors can
make warrants more speculative than other types of investments.
WHEN-ISSUED AND FORWARD PURCHASE OR SALE TRANSACTIONS involve a
commitment to purchase or sell specific securities at a predetermined
price or yield in which payment and delivery take place after the
customary settlement period for that type of security. Typically, no
interest accrues to the purchaser until the security is delivered.
When purchasing securities pursuant to one of these transactions, the
purchaser assumes the rights and risks of ownership, including the
risks of price and yield fluctuations and the risk that the security
will not be issued as anticipated. Because payment for the securities
is not required until the delivery date, these risks are in addition
to the risks associated with a fund's investments. If a fund remains
substantially fully invested at a time when a purchase is outstanding,
the purchases may result in a form of leverage. When a fund has sold a
security pursuant to one of these transactions, the fund does not
participate in further gains or losses with respect to the security.
If the other party to a delayed-delivery transaction fails to deliver
or pay for the securities, a fund could miss a favorable price or
yield opportunity or suffer a loss.
A fund may renegotiate a when-issued or forward transaction and may
sell the underlying securities before delivery, which may result in
capital gains or losses for the fund.
ZERO COUPON BONDS do not make interest payments; instead, they are
sold at a discount from their face value and are redeemed at face
value when they mature. Because zero coupon bonds do not pay current
income, their prices can be more volatile than other types of
fixed-income securities when interest rates change. In calculating a
fund's dividend, a portion of the difference between a zero coupon
bond's purchase price and its face value is considered income.
PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed
on behalf of each fund by FMR pursuant to authority contained in the
management contract. FMR is also responsible for the placement of
transaction orders for other investment companies and investment
accounts for which it or its affiliates act as investment adviser. In
selecting broker-dealers, subject to applicable limitations of the
federal securities laws, FMR considers various relevant factors,
including, but not limited to: the size and type of the transaction;
the nature and character of the markets for the security to be
purchased or sold; the execution efficiency, settlement capability,
and financial condition of the broker-dealer firm; the broker-dealer's
execution services rendered on a continuing basis; the reasonableness
of any commissions; and, if applicable, arrangements for payment of
fund expenses.
If FMR grants investment management authority to a sub-adviser (see
the section entitled "Management Contracts"), that sub-adviser is
authorized to place orders for the purchase and sale of portfolio
securities, and will do so in accordance with the policies described
above.
Generally, commissions for investments traded on foreign exchanges
will be higher than for investments traded on U.S. exchanges and may
not be subject to negotiation.
Futures transactions are executed and cleared through FCMs who receive
commissions for their services.
Each fund may execute portfolio transactions with broker-dealers who
provide research and execution services to the fund or other
investment accounts over which FMR or its affiliates exercise
investment discretion. Such services may include advice concerning the
value of securities; the advisability of investing in, purchasing, or
selling securities; and the availability of securities or the
purchasers or sellers of securities. In addition, such broker-dealers
may furnish analyses and reports concerning issuers, industries,
securities, economic factors and trends, portfolio strategy, and
performance of investment accounts; and effect securities transactions
and perform functions incidental thereto (such as clearance and
settlement).
The selection of such broker-dealers for transactions in equity
securities is generally made by FMR (to the extent possible consistent
with execution considerations) in accordance with a ranking of
broker-dealers determined periodically by FMR's investment staff based
upon the quality of research and execution services provided.
For transactions in fixed-income securities, FMR's selection of
broker-dealers is generally based on the availability of a security
and its price and, to a lesser extent, on the overall quality of
execution and other services, including research, provided by the
broker-dealer.
The receipt of research from broker-dealers that execute transactions
on behalf of a fund may be useful to FMR in rendering investment
management services to that fund or its other clients, and conversely,
such research provided by broker-dealers who have executed transaction
orders on behalf of other FMR clients may be useful to FMR in carrying
out its obligations to a fund. The receipt of such research has not
reduced FMR's normal independent research activities; however, it
enables FMR to avoid the additional expenses that could be incurred if
FMR tried to develop comparable information through its own efforts.
Fixed-income securities are generally purchased from an issuer or
underwriter acting as principal for the securities, on a net basis
with no brokerage commission paid. However, the dealer is compensated
by a difference between the security's original purchase price and the
selling price, the so-called "bid-asked spread." Securities may also
be purchased from underwriters at prices that include underwriting
fees.
Subject to applicable limitations of the federal securities laws, a
fund may pay a broker-dealer commissions for agency transactions that
are in excess of the amount of commissions charged by other
broker-dealers in recognition of their research and execution
services. In order to cause a fund to pay such higher commissions, FMR
must determine in good faith that such commissions are reasonable in
relation to the value of the brokerage and research services provided
by such executing broker-dealers, viewed in terms of a particular
transaction or FMR's overall responsibilities to that fund or its
other clients. In reaching this determination, FMR will not attempt to
place a specific dollar value on the brokerage and research services
provided, or to determine what portion of the compensation should be
related to those services.
To the extent permitted by applicable law, FMR is authorized to
allocate portfolio transactions in a manner that takes into account
assistance received in the distribution of shares of the funds or
other Fidelity funds and to use the research services of brokerage and
other firms that have provided such assistance. FMR may use research
services provided by and place agency transactions with National
Financial Services Corporation (NFSC) and Fidelity Brokerage Services
Japan LLC (FBSJ), indirect subsidiaries of FMR Corp., if the
commissions are fair, reasonable, and comparable to commissions
charged by non-affiliated, qualified brokerage firms for similar
services. Prior to December 9, 1997, FMR used research services
provided by and placed agency transactions with Fidelity Brokerage
Services (FBS), an indirect subsidiary of FMR Corp.
FMR may allocate brokerage transactions to broker-dealers (including
affiliates of FMR) who have entered into arrangements with FMR under
which the broker-dealer allocates a portion of the commissions paid by
a fund toward the reduction of that fund's expenses. The transaction
quality must, however, be comparable to those of other qualified
broker-dealers.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members
of national securities exchanges from executing exchange transactions
for investment accounts which they or their affiliates manage, unless
certain requirements are satisfied. Pursuant to such requirements, the
Board of Trustees has authorized NFSC to execute portfolio
transactions on national securities exchanges in accordance with
approved procedures and applicable SEC rules.
The Trustees of each fund periodically review FMR's performance of its
responsibilities in connection with the placement of portfolio
transactions on behalf of the fund and review the commissions paid by
the fund over representative periods of time to determine if they are
reasonable in relation to the benefits to the fund.
For the fiscal periods ended February 29, 2000 and February 28, 1999,
the portfolio turnover rates for the stock funds are presented in the
table below. Variations in turnover rate may be due to a fluctuating
volume of shareholder purchase and redemption orders, market
conditions, or changes in FMR's investment outlook.
Turnover Rates Fiscal 2000 Fiscal 1999
Air Transportation 252% 260%
Automotive 29% 96%
Banking 94% 22%
Biotechnology 72% 86%
Brokerage and Investment 47% 59%
Management
Business Services and 54% 115%
Outsourcing
Chemicals 132% 141%
Computers 129% 133%
Construction and Housing 34% 226%
Consumer Industries 96% 150%
Cyclical Industries 211% 103%
Defense and Aerospace 146% 221%
Developing Communications 112% 299%
Electronics 125% 160%
Energy 124% 138%
Energy Service 69% 75%
Environmental Services 206% 123%
Financial Services 57% 60%
Food and Agriculture 38% 68%
Gold 71% 59%
Health Care 70% 66%
Home Finance 91% 18%
Industrial Equipment 119% 84%
Industrial Materials 257% 82%
Insurance 107% 72%
Leisure 120% 107%
Medical Delivery 154% 67%
Medical Equipment and Systems 101% 85%A
Multimedia 76% 109%
Natural Gas 85% 107%
Natural Resources 164% 155%
Paper and Forest Products 383% 338%
Retailing 88% 165%
Software and Computer Services 59% 72%
Technology 210% 339%
Telecommunications 173% 150%
Transportation 318% 182%
Utilities Growth 93% 113%
A Annualized
The following tables show the brokerage commissions paid by the funds.
Significant changes in brokerage commissions paid by a fund from year
to year may result from changing asset levels throughout the year. A
fund may pay both commissions and spreads in connection with the
placement of portfolio transactions. For the fiscal years ended
February 29, 2000, February 28, 1999, and February 28, 1998, the money
market fund paid no brokerage commissions.
The following table shows the total amount of brokerage commissions
paid by each fund.
Fiscal Year Ended Total Amount Paid
Air Transportation February 28
2000(dagger) $ 216,120
1999 466,528
1998 377,945
Automotive
2000(dagger) 52,836
1999 166,706
1998 220,182
Banking
2000(dagger) 1,468,088
1999 615,558
1998 372,550
Biotechnology
2000(dagger) 882,899
1999 443,990
1998 843,401
Brokerage and Investment
Management
2000(dagger) 459,021
1999 775,691
1998 735,065
Business Services and
Outsourcing
2000(dagger) 52,285
1999 100,721
1998* 3,710
Chemicals
2000(dagger) 69,655
1999 152,343
1998 101,154
Computers
2000(dagger) 2,065,190
1999 1,257,001
1998 1,763,117
Construction and Housing
2000(dagger) 42,237
1999 370,610
1998 218,917
Consumer Industries
2000(dagger) 93,000
1999 117,209
1998 76,547
Cyclical Industries
2000(dagger) 10,598
1999 5,884
1998** 5,529
Defense and Aerospace
2000(dagger) 65,399
1999 163,499
1998 321,753
Developing Communications
2000(dagger) 757,426
1999 757,140
1998 699,196
Electronics February 28
2000(dagger) $ 4,409,649
1999 3,599,050
1998 8,057,183
Energy
2000(dagger) 671,869
1999 423,125
1998 481,212
Energy Service
2000(dagger) 1,346,429
1999 1,321,362
1998 1,428,931
Environmental Services
2000(dagger) 109,496
1999 72,365
1998 53,033
Financial Services
2000(dagger) 576,997
1999 506,934
1998 467,674
Food and Agriculture
2000(dagger) 184,348
1999 357,895
1998 271,283
Gold
2000(dagger) 778,215
1999 607,659
1998 1,178,299
Health Care
2000(dagger) 3,265,614
1999 2,810,021
1998 1,780,678
Home Finance
2000(dagger) 1,431,355
1999 858,979
1998 999,285
Industrial Equipment
2000(dagger) 38,997
1999 66,813
1998 186,022
Industrial Materials
2000(dagger) 56,133
1999 25,143
1998 138,995
Insurance
2000(dagger) 108,237
1999 171,027
1998 249,991
Leisure
2000(dagger) 543,147
1999 364,791
1998 444,121
Medical Delivery February 28
2000(dagger) $ 225,169
1999 244,378
1998 294,080
Medical Equipment and Systems
2000(dagger) 36,241
1999*** 14,974
Multimedia
2000(dagger) 190,136
1999 156,430
1998 213,979
Natural Gas
2000(dagger) 138,089
1999 155,015
1998 246,019
Natural Resources
2000(dagger) 51,772
1999 17,047
1998** 23,485
Paper and Forest Products
2000(dagger) 242,728
1999 140,355
1998 118,872
Retailing
2000(dagger) 419,112
1999 587,848
1998 721,512
Software and Computer Services
2000(dagger) 238,397
1999 273,818
1998 444,769
Technology
2000(dagger) 3,205,188
1999 1,912,128
1998 2,228,245
Telecommunications
2000(dagger) 1,996,047
1999 1,198,509
1998 1,091,330
Transportation
2000(dagger) 94,512
1999 86,899
1998 144,625
Utilities Growth
2000(dagger) 807,308
1999 789,881
1998 317,455
(dagger) Fiscal year ended February 29.
* Business Services and Outsourcing commenced operations on February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
*** Medical Equipment and Systems commenced operations on April 28,
1998.
The first table below shows the total amount of brokerage commissions
paid by each fund to NFSC, FBS, and FBSJ, as applicable, for the past
three fiscal years. The second table shows the approximate percentage
of aggregate brokerage commissions paid by a fund to NFSC, FBS, and
FBSJ for transactions involving the approximate percentage of the
aggregate dollar amount of transactions for which the fund paid
brokerage commissions for the fiscal year ended 2000. NFSC, FBS, and
FBSJ are paid on a commission basis.
<TABLE>
<CAPTION>
Total Amount Paid
Fiscal Year Ended To NFSC To FBS To FBSJ
<S> <C> <C> <C> <C>
Air Transportation February 28
2000(dagger) $ 23,162 $ 0 $ 0
1999 $ 73,991 $ 0 $ 0
1998 $ 70,756 $ 0 $ 0
Automotive
2000(dagger) $ 6,617 $ 0 $ 0
1999 $ 23,803 $ 0 $ 0
1998 $ 36,417 $ 0 $ 0
Banking
2000(dagger) $ 34,682 $ 0 $ 0
1999 $ 16,496 $ 0 $ 0
1998 $ 70,122 $ 0 $ 0
Biotechnology
2000(dagger) $ 35,822 $ 0 $ 0
1999 $ 31,302 $ 0 $ 0
1998 $ 114,067 $ 15,773 $ 0
Brokerage and Investment
Management
2000(dagger) $ 17,881 $ 0 $ 912
1999 $ 47,015 $ 0 $ 0
1998 $ 86,544 $ 11,262 $ 0
Business Services and
Outsourcing
2000(dagger) $ 4,996 $ 0 $ 0
1999 $ 16,127 $ 0 $ 0
1998* $ 45 $ 0 $ 0
Chemicals
2000(dagger) $ 8,076 $ 0 $ 0
1999 $ 21,237 $ 0 $ 0
1998 $ 12,782 $ 17,404 $ 0
Computers
2000(dagger) $ 137,531 $ 0 $ 0
1999 $ 217,026 $ 0 $ 0
1998 $ 240,381 $ 0 $ 0
Construction and Housing
2000(dagger) $ 5,722 $ 0 $ 0
1999 $ 51,030 $ 0 $ 0
1998 $ 46,802 $ 0 $ 0
Consumer Industries
2000(dagger) $ 11,823 $ 0 $ 0
1999 $ 17,657 $ 0 $ 0
1998 $ 15,031 $ 0 $ 0
Cyclical Industries
2000(dagger) $ 1,804 $ 0 $ 0
1999 $ 579 $ 0 $ 0
1998** $ 470 $ 0 $ 0
Defense and Aerospace February 28
2000(dagger) $ 6,543 $ 0 $ 0
1999 $ 29,426 $ 0 $ 0
1998 $ 60,895 $ 0 $ 0
Developing Communications
2000(dagger) $ 41,229 $ 0 $ 0
1999 $ 91,601 $ 0 $ 0
1998 $ 100,909 $ 3,085 $ 0
Electronics
2000(dagger) $ 267,827 $ 0 $ 0
1999 $ 363,022 $ 0 $ 0
1998 $ 1,038,942 $ 0 $ 0
Energy
2000(dagger) $ 41,409 $ 0 $ 0
1999 $ 48,921 $ 0 $ 0
1998 $ 56,921 $ 0 $ 0
Energy Service
2000(dagger) $ 117,730 $ 0 $ 0
1999 $ 132,958 $ 0 $ 0
1998 $ 208,445 $ 0 $ 0
Environmental Services
2000(dagger) $ 15,874 $ 0 $ 0
1999 $ 14,545 $ 0 $ 0
1998 $ 4,927 $ 0 $ 0
Financial Services
2000(dagger) $ 19,290 $ 0 $ 0
1999 $ 45,514 $ 0 $ 0
1998 $ 58,925 $ 0 $ 0
Food and Agriculture
2000(dagger) $ 13,213 $ 0 $ 0
1999 $ 54,460 $ 0 $ 0
1998 $ 44,060 $ 0 $ 0
Gold
2000(dagger) $ 17,440 $ 0 $ 0
1999 $ 16,916 $ 0 $ 0
1998 $ 91,784 $ 0 $ 0
Health Care
2000(dagger) $ 143,093 $ 0 $ 0
1999 $ 244,159 $ 0 $ 0
1998 $ 202,696 $ 39,030 $ 0
Home Finance
2000(dagger) $ 66,175 $ 0 $ 0
1999 $ 118,062 $ 0 $ 0
1998 $ 222,404 $ 11,072 $ 0
Industrial Equipment
2000(dagger) $ 4,565 $ 0 $ 0
1999 $ 8,504 $ 0 $ 0
1998 $ 28,906 $ 0 $ 0
Industrial Materials February 28
2000(dagger) $ 11,147 $ 0 $ 0
1999 $ 3,612 $ 0 $ 0
1998 $ 19,267 $ 0 $ 0
Insurance
2000(dagger) $ 6,528 $ 0 $ 0
1999 $ 17,412 $ 0 $ 0
1998 $ 41,261 $ 4,571 $ 0
Leisure
2000(dagger) $ 48,009 $ 0 $ 0
1999 $ 84,286 $ 0 $ 0
1998 $ 113,958 $ 0 $ 0
Medical Delivery
2000(dagger) $ 17,503 $ 0 $ 0
1999 $ 23,772 $ 0 $ 0
1998 $ 54,751 $ 0 $ 0
Medical Equipment and Systems
2000(dagger) $ 5,647 $ 0 $ 0
1999*** $ 3,290 $ 0 $ 0
Multimedia
2000(dagger) $ 24,819 $ 0 $ 0
1999 $ 41,770 $ 0 $ 0
1998 $ 40,201 $ 0 $ 0
Natural Gas
2000(dagger) $ 8,100 $ 0 $ 0
1999 $ 13,630 $ 0 $ 0
1998 $ 38,095 $ 0 $ 0
Natural Resources
2000(dagger) $ 4,865 $ 0 $ 0
1999 $ 2,189 $ 0 $ 0
1998** $ 1,465 $ 0 $ 0
Paper and Forest Products
2000(dagger) $ 15,067 $ 0 $ 0
1999 $ 15,977 $ 0 $ 0
1998 $ 11,543 $ 0 $ 0
Retailing
2000(dagger) $ 31,755 $ 0 $ 0
1999 $ 155,653 $ 0 $ 0
1998 $ 132,299 $ 0 $ 0
Software and Computer Services
2000(dagger) $ 6,868 $ 0 $ 0
1999 $ 38,702 $ 0 $ 0
1998 $ 71,604 $ 0 $ 0
Technology
2000(dagger) $ 325,672 $ 0 $ 0
1999 $ 323,190 $ 0 $ 0
1998 $ 349,497 $ 0 $ 0
Telecommunications February 28
2000(dagger) $ 62,950 $ 0 $ 11,564
1999 $ 123,641 $ 0 $ 0
1998 $ 81,847 $ 0 $ 0
Transportation
2000(dagger) $ 9,783 $ 0 $ 0
1999 $ 12,152 $ 0 $ 0
1998 $ 18,070 $ 0 $ 0
Utilities Growth
2000(dagger) $ 7,727 $ 0 $ 0
1999 $ 23,956 $ 0 $ 0
1998 $ 29,653 $ 1,975 $ 0
</TABLE>
(dagger) Fiscal year ended February 29.
* Business Services and Outsourcing commenced operations on February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
*** Medical Equipment and Systems commenced operations on April 28,
1998.
<TABLE>
<CAPTION>
Fiscal Year Ended 2000 % of Aggregate Commissions % of Aggregate Dollar Amount
Paid to NFSC of Transactions Effected
through NFSC
<S> <C> <C> <C>
Air Transportation(dagger) February 29 10.72% 28.26%
Automotive(dagger) February 29 12.52% 25.78%
Banking(dagger) February 29 2.36% 6.09%
Biotechnology(dagger) February 29 4.06% 7.69%
Brokerage and Investment February 29 3.90% 12.72%
Management(dagger)
Business Services and February 29 9.56% 15.54%
Outsourcing(dagger)
Chemicals(dagger) February 29 11.59% 24.31%
Computers(dagger) February 29 6.66% 10.92%
Construction and February 29 13.54% 32.94%
Housing(dagger)
Consumer Industries(dagger) February 29 12.71% 25.86%
Cyclical Industries(dagger) February 29 17.02% 26.22%
Defense and Aerospace(dagger) February 29 10.01% 19.50%
Developing February 29 5.45% 7.81%
Communications(dagger)
Electronics(dagger) February 29 6.07% 8.05%
Energy(dagger) February 29 6.16% 17.86%
Energy Service(dagger) February 29 8.74% 20.31%
Environmental Services(dagger) February 29 14.50% 30.98%
Financial Services(dagger) February 29 3.34% 8.73%
Food and Agriculture(dagger) February 29 7.17% 18.32%
Gold(dagger) February 29 2.24% 5.02%
Health Care(dagger) February 29 4.38% 10.13%
Home Finance(dagger) February 29 4.62% 4.79%
Industrial Equipment(dagger) February 29 11.71% 16.84%
Industrial Materials(dagger) February 29 19.86% 34.19%
Insurance(dagger) February 29 6.04% 13.40%
Leisure(dagger) February 29 8.84% 18.11%
Medical Delivery(dagger) February 29 7.77% 15.35%
Medical Equipment and February 29 15.59% 29.72%
Systems(dagger)
Multimedia(dagger) February 29 13.06% 27.22%
Natural Gas(dagger) February 29 5.86% 17.36%
Natural Resources(dagger) February 29 9.40% 20.95%
Paper and Forest February 29 6.21% 22.03%
Products(dagger)
Retailing(dagger) February 29 7.57% 16.58%
Software and Computer February 29 2.88% 8.33%
Services(dagger)
Technology(dagger) February 29 10.16% 14.74%
Telecommunications(dagger) February 29 3.16% 6.21%
Transportation(dagger) February 29 10.35% 22.83%
Utilities Growth(dagger) February 29 0.96% 2.18%
</TABLE>
<TABLE>
<CAPTION>
% of Aggregate Commissions % of Aggregate Dollar Amount % of Aggregate Commissions
Paid to FBS of Transactions Effected Paid to FBSJ
through FBS
<S> <C> <C> <C>
Air Transportation(dagger) 0% 0% 0%
Automotive(dagger) 0% 0% 0%
Banking(dagger) 0% 0% 0%
Biotechnology(dagger) 0% 0% 0%
Brokerage and Investment 0% 0% 0.20%
Management(dagger)
Business Services and 0% 0% 0%
Outsourcing(dagger)
Chemicals(dagger) 0% 0% 0%
Computers(dagger) 0% 0% 0%
Construction and 0% 0% 0%
Housing(dagger)
Consumer Industries(dagger) 0% 0% 0%
Cyclical Industries(dagger) 0% 0% 0%
Defense and Aerospace(dagger) 0% 0% 0%
Developing 0% 0% 0%
Communications(dagger)
Electronics(dagger) 0% 0% 0%
Energy(dagger) 0% 0% 0%
Energy Service(dagger) 0% 0% 0%
Environmental Services(dagger) 0% 0% 0%
Financial Services(dagger) 0% 0% 0%
Food and Agriculture(dagger) 0% 0% 0%
Gold(dagger) 0% 0% 0%
Health Care(dagger) 0% 0% 0%
Home Finance(dagger) 0% 0% 0%
Industrial Equipment(dagger) 0% 0% 0%
Industrial Materials(dagger) 0% 0% 0%
Insurance(dagger) 0% 0% 0%
Leisure(dagger) 0% 0% 0%
Medical Delivery(dagger) 0% 0% 0%
Medical Equipment and 0% 0% 0%
Systems(dagger)
Multimedia(dagger) 0% 0% 0%
Natural Gas(dagger) 0% 0% 0%
Natural Resources(dagger) 0% 0% 0%
Paper and Forest 0% 0% 0%
Products(dagger)
Retailing(dagger) 0% 0% 0%
Software and Computer 0% 0% 0%
Services(dagger)
Technology(dagger) 0% 0% 0%
Telecommunications(dagger) 0% 0% 0.58%
Transportation(dagger) 0% 0% 0%
Utilities Growth(dagger) 0% 0% 0%
</TABLE>
<TABLE>
<CAPTION>
% of Aggregate Dollar Amount
of Transactions Effected
through FBSJ
<S> <C>
Air Transportation(dagger) 0%
Automotive(dagger) 0%
Banking(dagger) 0%
Biotechnology(dagger) 0%
Brokerage and Investment 0.29%
Management(dagger)
Business Services and 0%
Outsourcing(dagger)
Chemicals(dagger) 0%
Computers(dagger) 0%
Construction and 0%
Housing(dagger)
Consumer Industries(dagger) 0%
Cyclical Industries(dagger) 0%
Defense and Aerospace(dagger) 0%
Developing 0%
Communications(dagger)
Electronics(dagger) 0%
Energy(dagger) 0%
Energy Service(dagger) 0%
Environmental Services(dagger) 0%
Financial Services(dagger) 0%
Food and Agriculture(dagger) 0%
Gold(dagger) 0%
Health Care(dagger) 0%
Home Finance(dagger) 0%
Industrial Equipment(dagger) 0%
Industrial Materials(dagger) 0%
Insurance(dagger) 0%
Leisure(dagger) 0%
Medical Delivery(dagger) 0%
Medical Equipment and 0%
Systems(dagger)
Multimedia(dagger) 0%
Natural Gas(dagger) 0%
Natural Resources(dagger) 0%
Paper and Forest 0%
Products(dagger)
Retailing(dagger) 0%
Software and Computer 0%
Services(dagger)
Technology(dagger) 0%
Telecommunications(dagger) 0.63%
Transportation(dagger) 0%
Utilities Growth(dagger) 0%
</TABLE>
(dagger) The difference between the percentage of aggregate brokerage
commissions paid to, and the percentage of the aggregate dollar amount
of transactions effected through, NFSC is a result of the low
commission rates charged by NFSC.
The following table shows the dollar amount of brokerage commissions
paid to firms for providing research services and the approximate
dollar amount of the transactions involved for the fiscal year ended
2000.
<TABLE>
<CAPTION>
Fiscal Year Ended 2000 $ Amount of Commissions Paid $ Amount of Brokerage
to Firms for Providing Transactions Involved*
Research Services*
<S> <C> <C> <C>
Air Transportation February 29 $ 197,518 $ 168,971,729
Automotive February 29 $ 40,811 $ 33,978,205
Banking February 29 $ 1,398,705 $ 1,196,892,423
Biotechnology February 29 $ 716,181 $ 761,035,683
Brokerage and Investment February 29 $ 397,589 $ 381,923,504
Management
Business Services and February 29 $ 36,293 $ 26,574,516
Outsourcing
Chemicals February 29 $ 48,525 $ 44,020,808
Computers February 29 $ 1,893,851 $ 2,252,177,306
Construction and Housing February 29 $ 32,299 $ 22,206,775
Consumer Industries February 29 $ 72,652 $ 61,492,977
Cyclical Industries February 29 $ 6,126 $ 7,240,968
Defense and Aerospace February 29 $ 54,420 $ 48,929,369
Developing Communications February 29 $ 525,787 $ 789,733,201
Electronics February 29 $ 3,898,464 $ 3,932,880,277
Energy February 29 $ 597,576 $ 322,411,666
Energy Service February 29 $ 1,268,155 $ 781,581,573
Environmental Services February 29 $ 88,267 $ 31,888,439
Financial Services February 29 $ 525,708 $ 510,253,562
Food and Agriculture February 29 $ 166,210 $ 119,644,938
Gold February 29 $ 697,893 $ 203,483,798
Health Care February 29 $ 3,154,240 $ 2,878,657,848
Home Finance February 29 $ 1,268,540 $ 743,204,206
Industrial Equipment February 29 $ 30,533 $ 33,145,587
Industrial Materials February 29 $ 33,594 $ 31,414,596
Insurance February 29 $ 92,743 $ 99,969,519
Leisure February 29 $ 487,976 $ 491,770,697
Medical Delivery February 29 $ 205,755 $ 69,113,520
Medical Equipment and Systems February 29 $ 27,802 $ 26,736,094
Multimedia February 29 $ 174,939 $ 191,294,364
Natural Gas February 29 $ 120,268 $ 60,896,834
Natural Resources February 29 $ 38,814 $ 22,501,067
Paper and Forest Products February 29 $ 190,711 $ 96,596,204
Retailing February 29 $ 401,260 $ 371,624,261
Software and Computer Services February 29 $ 205,644 $ 264,434,307
Technology February 29 $ 2,835,925 $ 3,845,384,058
Telecommunications February 29 $ 1,610,675 $ 1,870,703,705
Transportation February 29 $ 76,222 $ 64,871,756
Utilities Growth February 29 $ 634,490 $ 533,560,435
</TABLE>
* The provision of research services was not necessarily a factor in
the placement of all this business with such firms.
For the fiscal year ended February 29, 2000 the money market fund paid
no brokerage commissions to firms for providing research services.
The Trustees of each fund have approved procedures in conformity with
Rule 10f-3 under the 1940 Act whereby a fund may purchase securities
that are offered in underwritings in which an affiliate of FMR
participates. These procedures prohibit the funds from directly or
indirectly benefiting an FMR affiliate in connection with such
underwritings. In addition, for underwritings where an FMR affiliate
participates as a principal underwriter, certain restrictions may
apply that could, among other things, limit the amount of securities
that the funds could purchase in the underwriting.
From time to time the Trustees will review whether the recapture for
the benefit of the funds of some portion of the brokerage commissions
or similar fees paid by the funds on portfolio transactions is legally
permissible and advisable. Each fund seeks to recapture soliciting
broker-dealer fees on the tender of portfolio securities, but at
present no other recapture arrangements are in effect. The Trustees
intend to continue to review whether recapture opportunities are
available and are legally permissible and, if so, to determine in the
exercise of their business judgment whether it would be advisable for
each fund to seek such recapture.
Although the Trustees and officers of each fund are substantially the
same as those of other funds managed by FMR or its affiliates,
investment decisions for each fund are made independently from those
of other funds or investment accounts managed by FMR or its
affiliates. It sometimes happens that the same security is held in the
portfolio of more than one of these funds or investment accounts.
Simultaneous transactions are inevitable when several funds and
investment accounts are managed by the same investment adviser,
particularly when the same security is suitable for the investment
objective of more than one fund or investment account.
When two or more funds are simultaneously engaged in the purchase or
sale of the same security, the prices and amounts are allocated in
accordance with procedures believed to be appropriate and equitable
for each fund. In some cases this system could have a detrimental
effect on the price or value of the security as far as each fund is
concerned. In other cases, however, the ability of the funds to
participate in volume transactions will produce better executions and
prices for the funds. It is the current opinion of the Trustees that
the desirability of retaining FMR as investment adviser to each fund
outweighs any disadvantages that may be said to exist from exposure to
simultaneous transactions.
VALUATION
Each fund's NAV is the value of a single share. The NAV of each fund
is computed by adding the value of the fund's investments, cash, and
other assets, subtracting its liabilities, and dividing the result by
the number of shares outstanding.
STOCK FUNDS. Portfolio securities are valued by various methods
depending on the primary market or exchange on which they trade. Most
equity securities for which the primary market is the United States
are valued at last sale price or, if no sale has occurred, at the
closing bid price. Most equity securities for which the primary market
is outside the United States are valued using the official closing
price or the last sale price in the principal market in which they are
traded. If the last sale price (on the local exchange) is unavailable,
the last evaluated quote or closing bid price normally is used.
Securities of other open-end investment companies are valued at their
respective NAVs.
Fixed-income securities and other assets for which market quotations
are readily available may be valued at market values determined by
such securities' most recent bid prices (sales prices if the principal
market is an exchange) in the principal market in which they normally
are traded, as furnished by recognized dealers in such securities or
assets. Or, fixed-income securities and convertible securities may be
valued on the basis of information furnished by a pricing service that
uses a valuation matrix which incorporates both dealer-supplied
valuations and electronic data processing techniques. Use of pricing
services has been approved by the Board of Trustees. A number of
pricing services are available, and the funds may use various pricing
services or discontinue the use of any pricing service.
Futures contracts and options are valued on the basis of market
quotations, if available.
Independent brokers or quotation services provide prices of foreign
securities in their local currency. Fidelity Service Company (FSC)
gathers all exchange rates daily at the close of the NYSE using the
last quoted price on the local currency and then translates the value
of foreign securities from their local currencies into U.S. dollars.
Any changes in the value of forward contracts due to exchange rate
fluctuations and days to maturity are included in the calculation of
NAV. If an event that is expected to materially affect the value of a
portfolio security occurs after the close of an exchange or market on
which that security is traded, then that security will be valued in
good faith by a committee appointed by the Board of Trustees.
Short-term securities with remaining maturities of sixty days or less
for which market quotations and information furnished by a pricing
service are not readily available are valued either at amortized cost
or at original cost plus accrued interest, both of which approximate
current value.
The procedures set forth above need not be used to determine the value
of the securities owned by a fund if, in the opinion of a committee
appointed by the Board of Trustees, some other method would more
accurately reflect the fair value of such securities. For example,
securities and other assets for which there is no readily available
market value may be valued in good faith by a committee appointed by
the Board of Trustees. In making a good faith determination of the
value of a security, the committee may review price movements in
futures contracts and ADRs, market and trading trends, the bid/ask
quotes of brokers and off-exchange institutional trading.
MONEY MARKET FUND. Portfolio securities and other assets are valued on
the basis of amortized cost. This technique involves initially valuing
an instrument at its cost as adjusted for amortization of premium or
accretion of discount rather than its current market value. The
amortized cost value of an instrument may be higher or lower than the
price the fund would receive if it sold the instrument.
Securities of other open-end investment companies are valued at their
respective NAVs.
At such intervals as they deem appropriate, the Trustees consider the
extent to which NAV calculated by using market valuations would
deviate from the $1.00 per share calculated using amortized cost
valuation. If the Trustees believe that a deviation from the fund's
amortized cost per share may result in material dilution or other
unfair results to shareholders, the Trustees have agreed to take such
corrective action, if any, as they deem appropriate to eliminate or
reduce, to the extent reasonably practicable, the dilution or unfair
results. Such corrective action could include selling portfolio
instruments prior to maturity to realize capital gains or losses or to
shorten average portfolio maturity; withholding dividends; redeeming
shares in kind; establishing NAV by using available market quotations;
and such other measures as the Trustees may deem appropriate.
PERFORMANCE
A fund may quote performance in various ways. All performance
information supplied by the funds in advertising is historical and is
not intended to indicate future returns. The share price of a stock
fund, the yield of a money market fund, and return fluctuate in
response to market conditions and other factors, and the value of a
stock fund's shares when redeemed may be more or less than their
original cost.
YIELD CALCULATIONS (MONEY MARKET FUND). To compute the yield for the
money market fund for a period, the net change in value of a
hypothetical account containing one share reflects the value of
additional shares purchased with dividends from the one original share
and dividends declared on both the original share and any additional
shares. The net change is then divided by the value of the account at
the beginning of the period to obtain a base period return. This base
period return is annualized to obtain a current annualized yield. The
money market fund also may calculate an effective yield by compounding
the base period return over a one-year period. In addition to the
current yield, the money market fund may quote yields in advertising
based on any historical seven-day period. Yields for the money market
fund are calculated on the same basis as other money market funds, as
required by applicable regulation.
Yield information may be useful in reviewing the fund's performance
and in providing a basis for comparison with other investment
alternatives. However, the fund's yield fluctuates, unlike investments
that pay a fixed interest rate over a stated period of time. When
comparing investment alternatives, investors should also note the
quality and maturity of the portfolio securities of respective
investment companies they have chosen to consider.
Investors should recognize that in periods of declining interest rates
the fund's yield will tend to be somewhat higher than prevailing
market rates, and in periods of rising interest rates the fund's yield
will tend to be somewhat lower. Also, when interest rates are falling,
the inflow of net new money to the fund from the continuous sale of
its shares will likely be invested in instruments producing lower
yields than the balance of the fund's holdings, thereby reducing the
fund's current yield. In periods of rising interest rates, the
opposite can be expected to occur.
RETURN CALCULATIONS. Returns quoted in advertising reflect all aspects
of a fund's return, including the effect of reinvesting dividends and
capital gain distributions, and any change in a fund's NAV over a
stated period. A cumulative return reflects actual performance over a
stated period of time. Average annual returns are calculated by
determining the growth or decline in value of a hypothetical
historical investment in a fund over a stated period, and then
calculating the annually compounded percentage rate that would have
produced the same result if the rate of growth or decline in value had
been constant over the period. For example, a cumulative return of
100% over ten years would produce an average annual return of 7.18%,
which is the steady annual rate of return that would equal 100% growth
on a compounded basis in ten years. While average annual returns are a
convenient means of comparing investment alternatives, investors
should realize that a fund's performance is not constant over time,
but changes from year to year, and that average annual returns
represent averaged figures as opposed to the actual year-to-year
performance of a fund.
In addition to average annual returns, a fund may quote unaveraged or
cumulative returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative returns
may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a
series of redemptions, over any time period. Returns may be broken
down into their components of income and capital (including capital
gains and changes in share price) in order to illustrate the
relationship of these factors and their contributions to return.
Returns may be quoted on a before-tax or after-tax basis. After-tax
returns reflect the return of a hypothetical account after payment of
federal and/or state taxes using assumed tax rates. After-tax returns
may assume that taxes are paid at the time of distribution or once a
year or are paid in cash or by selling shares, that shares are held
through the entire period, sold on the last day of the period, or sold
at a future date, and distributions are reinvested or paid in cash.
Returns may or may not include the effect of a fund's maximum sales
charge or the effect of a stock fund's trading fee. Excluding a fund's
sales charge or trading fee from a return calculation produces a
higher return figure. Returns, yields, and other performance
information may be quoted numerically or in a table, graph, or similar
illustration.
NET ASSET VALUE. Charts and graphs using a fund's NAVs, adjusted NAVs,
and benchmark indexes may be used to exhibit performance. An adjusted
NAV includes any distributions paid by a fund and reflects all
elements of its return. Unless otherwise indicated, a fund's adjusted
NAVs are not adjusted for sales charges, if any.
MOVING AVERAGES. A stock fund may illustrate performance using moving
averages. A long-term moving average is the average of each week's
adjusted closing NAV for a specified period. A short-term moving
average is the average of each day's adjusted closing NAV for a
specified period. Moving Average Activity Indicators combine adjusted
closing NAVs from the last business day of each week with moving
averages for a specified period to produce indicators showing when an
NAV has crossed, stayed above, or stayed below its moving average. The
13-week and 39-week short-term moving averages for each fund are shown
in the table below.
<TABLE>
<CAPTION>
Fund 13-Week Short-Term Moving 39-Week Short-Term Moving
Average Average
<S> <C> <C>
Air Transportation* $ 28.14 $ 28.10
Automotive* $ 20.18 $ 22.49
Banking* $ 29.82 $ 32.55
Biotechnology* $ 74.75 $ 56.88
Brokerage and Investment $ 44.91 $ 42.23
Management*
Business Services and $ 15.08 $ 14.13
Outsourcing*
Chemicals* $ 36.27 $ 35.96
Computers* $ 105.81 $ 84.89
Construction and Housing* $ 19.29 $ 20.33
Consumer Industries* $ 30.90 $ 30.28
Cyclical Industries* $ 12.52 $ 12.78
Defense and Aerospace* $ 35.29 $ 36.37
Developing Communications* $ 63.40 $ 47.80
Electronics* $ 93.71 $ 73.32
Energy* $ 22.93 $ 23.45
Energy Service* $ 24.66 $ 23.31
Environmental Services* $ 9.76 $ 11.25
Financial Services* $ 89.16 $ 94.23
Food and Agriculture* $ 35.32 $ 39.22
Gold* $ 14.06 $ 13.77
Health Care* $ 128.02 $ 125.33
Home Finance* $ 34.97 $ 39.01
Industrial Equipment* $ 25.81 $ 25.94
Industrial Materials* $ 22.42 $ 23.09
Insurance* $ 31.83 $ 34.43
Leisure* $ 88.08 $ 82.52
Medical Delivery* $ 16.27 $ 16.87
Medical Equipment and Systems* $ 13.43 $ 12.70
Multimedia* $ 54.69 $ 49.08
Natural Gas* $ 14.49 $ 14.91
Natural Resources* $ 11.69 $ 11.66
Paper and Forest Products* $ 23.60 $ 23.40
Retailing* $ 54.24 $ 54.65
Software and Computer Services* $ 93.31 $ 71.48
Technology* $ 153.74 $ 114.94
Telecommunications* $ 89.99 $ 75.16
Transportation* $ 22.47 $ 23.66
Utilities Growth* $ 66.64 $ 63.13
</TABLE>
* On February 29, 2000.
HISTORICAL FUND RESULTS. The following table shows the money market
fund's 7-day yield and each fund's returns for the fiscal periods
ended February 29, 2000. The money market fund has a 3% sales charge,
which is included in the average annual and cumulative returns. Each
stock fund has a 3% sales charge and a trading fee, which are included
in the average annual and cumulative returns.
<TABLE>
<CAPTION>
Average Annual Returns Cumulative Returns
<S> <C> <C> <C> <C> <C>
Seven-Day Yield One Year Five Years Ten Years/ Life of Fund One Year
Air Transportation 5.18% 18.35% 13.04% 5.18%
Automotive -19.95% 3.62% 10.10% -19.95%
Banking -24.48% 16.55% 18.52% -24.48%
Biotechnology 164.95% 43.11% 29.82% 164.95%
Brokerage and Investment 15.49% 29.00% 22.07% 15.49%
Management
Business Services and 8.71% n/a 21.46%* 8.71%
Outsourcing
Chemicals 7.70% 7.58% 11.52% 7.70%
Computers 112.92% 51.87% 36.77% 112.92%
Construction and Housing -20.80% 9.42% 11.39% -20.80%
Consumer Industries -7.48% 18.64% 15.76%* -7.48%
Cyclical Industries -1.71% n/a 5.53%* -1.71%
Defense and Aerospace 0.07% 17.06% 14.74% 0.07%
Developing Communications 158.07% 46.11% 34.37%* 158.07%
Electronics 169.64% 60.16% 39.82% 169.64%
Energy 40.47% 13.94% 8.23% 40.47%
Energy Service 114.53% 23.71% 11.53% 114.53%
Environmental Services -27.32% -0.88% -0.29% -27.32%
Financial Services -17.17% 19.03% 18.75% -17.17%
Food and Agriculture -30.09% 7.87% 11.43% -30.09%
Gold 1.93% -5.29% -2.32% 1.93%
Health Care -1.96% 23.42% 22.72% -1.96%
Home Finance -27.21% 10.50% 18.81% -27.21%
Industrial Equipment 15.34% 18.85% 15.48% 15.34%
Industrial Materials -6.20% 0.76% 6.82% -6.20%
Insurance -24.53% 14.50% 13.78% -24.53%
Leisure 10.40% 25.75% 19.62% 10.40%
Medical Delivery -22.09% -0.12% 10.59% -22.09%
Medical Equipment and Systems 21.84% n/a 23.48%* 21.84%
Multimedia 23.72% 24.87% 20.96% 23.72%
Natural Gas 40.28% 12.00% 7.18%* 40.28%
Natural Resources 43.89% n/a 5.22%* 43.89%
Paper and Forest Products 16.48% 6.22% 10.82% 16.48%
Retailing -14.86% 19.89% 18.46% -14.86%
Software and Computer Services 94.74% 41.62% 32.19% 94.74%
Technology 175.52% 55.52% 37.65% 175.52%
Telecommunications 79.27% 34.22% 23.96% 79.27%
Transportation -0.99% 10.19% 13.48% -0.99%
Utilities Growth 25.80% 27.48% 18.03% 25.80%
Money Market 5.53% 1.93% 4.56% 4.60% 1.93%
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Five Years Ten Years/ Life of Fund
Five Years Ten Years/ Life of Fund
Air Transportation 132.22% 240.79%
Automotive 19.46% 161.72%
Banking 115.07% 446.71%
Biotechnology 500.24% 1,259.94%
Brokerage and Investment 257.26% 634.93%
Management
Business Services and n/a 49.48%*
Outsourcing
Chemicals 44.10% 197.61%
Computers 707.88% 2,190.68%
Construction and Housing 56.84% 193.98%
Consumer Industries 135.07% 311.37%*
Cyclical Industries n/a 17.50%*
Defense and Aerospace 119.79% 295.38%
Developing Communications 565.87% 1,639.44%*
Electronics 953.83% 2,754.56%
Energy 91.99% 120.63%
Energy Service 189.69% 197.74%
Environmental Services -4.33% -2.83%
Financial Services 138.93% 457.42%
Food and Agriculture 46.03% 195.24%
Gold -23.81% -20.89%
Health Care 186.40% 674.49%
Home Finance 64.77% 460.36%
Industrial Equipment 137.15% 321.80%
Industrial Materials 3.85% 93.36%
Insurance 96.78% 263.48%
Leisure 214.46% 499.69%
Medical Delivery -0.62% 173.60%
Medical Equipment and Systems n/a 47.44%*
Multimedia 203.58% 570.77%
Natural Gas 76.25% 60.92%*
Natural Resources n/a 16.45%*
Paper and Forest Products 35.21% 179.25%
Retailing 147.66% 444.06%
Software and Computer Services 469.64% 1,529.22%
Technology 809.68% 2,341.31%
Telecommunications 335.62% 756.50%
Transportation 62.41% 254.20%
Utilities Growth 236.70% 424.75%
Money Market 24.98% 56.79%
</TABLE>
* From commencement of operations (June 29, 1990 for Consumer
Industries and Developing Communications; April 21, 1993 for Natural
Gas; March 3, 1997 for Cyclical Industries and Natural Resources;
February 4, 1998 for Business Services and Outsourcing; and April 28,
1998 for Medical Equipment and Systems).
Note: If FMR had not reimbursed certain fund expenses during these
periods, Air Transportation's, Automotive's, Banking's,
Biotechnology's, Brokerage and Investment Management's, Business
Services and Outsourcing's, Chemicals', Construction and Housing's,
Consumer Industries', Cyclical Industries', Defense and Aerospace's,
Developing Communications', Electronics', Home Finance's, Industrial
Equipment's, Industrial Materials', Insurance's, Multimedia's, Natural
Resources', Paper and Forest Products', Retailing's, Software and
Computer Services', and Transportation's returns would have been
lower.
The following tables show the income and capital elements of each
fund's cumulative return. The tables compare each fund's return to the
record of the S&P 500, the Dow Jones Industrial Average (DJIA), and
the cost of living, as measured by the Consumer Price Index (CPI),
over the same period. The S&P 500 and DJIA comparisons are provided to
show how each fund's return compared to the record of a market
capitalization-weighted index of common stocks and a narrower set of
stocks of major industrial companies, respectively, over the same
period. Because the money market fund invests in short-term
fixed-income securities, common stocks represent a different type of
investment from the fund. Common stocks generally offer greater growth
potential than the fund, but generally experience greater price
volatility, which means greater potential for loss. In addition,
common stocks generally provide lower income than a fixed-income
investment such as the fund. Each of the stock funds has the ability
to invest in securities not included in either index, and its
investment portfolio may or may not be similar in composition to the
indexes. The S&P 500 and DJIA returns are based on the prices of
unmanaged groups of stocks and, unlike each fund's returns, do not
include the effect of brokerage commissions or other costs of
investing.
The following tables show the growth in value of a hypothetical
$10,000 investment in each fund during the 10-year period ended
February 29, 2000 or life of each fund, as applicable, assuming all
distributions were reinvested. Returns are based on past results and
are not an indication of future performance. Tax consequences of
different investments (with the exception of foreign tax withholdings)
have not been factored into the figures below.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Air Transportation Portfolio would have grown to
$34,087, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AIR TRANSPORTATION PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 23,538 $ 0 $ 10,549 $ 34,087
1999 $ 24,704 $ 0 $ 6,711 $ 31,415
1998 $ 23,903 $ 0 $ 6,271 $ 30,174
1997 $ 15,769 $ 0 $ 2,960 $ 18,729
1996 $ 18,786 $ 0 $ 3,263 $ 22,049
1995 $ 12,396 $ 0 $ 1,838 $ 14,234
1994 $ 15,235 $ 0 $ 1,024 $ 16,259
1993 $ 12,103 $ 0 $ 602 $ 12,708
1992 $ 12,601 $ 0 $ 261 $ 12,862
1991 $ 10,563 $ 0 $ 0 $ 10,563
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AIR TRANSPORTATION PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Air
Transportation Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $18,819. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $0 for dividends and $7,315 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Automotive Portfolio would have grown to
$26,179, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AUTOMOTIVE PORTFOLIO
INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 15,848 $ 602 $ 9,729 $ 26,179 $ 52,547
1999 $ 19,186 $ 729 $ 11,778 $ 31,693 $ 47,029
1998 $ 22,664 $ 835 $ 11,146 $ 34,645 $ 39,278
1997 $ 20,916 $ 676 $ 6,625 $ 28,217 $ 29,094
1996 $ 18,007 $ 416 $ 4,974 $ 23,397 $ 23,061
1995 $ 16,351 $ 377 $ 4,517 $ 21,245 $ 17,120
1994 $ 20,999 $ 418 $ 2,888 $ 24,305 $ 15,947
1993 $ 17,051 $ 297 $ 1,284 $ 18,632 $ 14,719
1992 $ 14,142 $ 197 $ 776 $ 15,115 $ 13,300
1991 $ 10,170 $ 142 $ 0 $ 10,312 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
AUTOMOTIVE PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Automotive
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $21,882. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $503 for
dividends and $8,719 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Banking Portfolio would have grown to $54,678,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
BANKING PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 24,177 $ 3,433 $ 27,068 $ 54,678 $ 52,547
1999 $ 37,969 $ 4,691 $ 27,499 $ 70,159 $ 47,029
1998 $ 39,439 $ 4,418 $ 24,190 $ 68,047 $ 39,278
1997 $ 29,977 $ 3,002 $ 16,820 $ 49,799 $ 29,094
1996 $ 22,259 $ 1,870 $ 10,616 $ 34,745 $ 23,061
1995 $ 16,450 $ 1,117 $ 7,085 $ 24,652 $ 17,120
1994 $ 16,432 $ 750 $ 5,689 $ 22,871 $ 15,947
1993 $ 19,071 $ 689 $ 1,723 $ 21,483 $ 14,719
1992 $ 14,422 $ 427 $ 616 $ 15,465 $ 13,300
1991 $ 9,234 $ 162 $ 0 $ 9,396 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
BANKING PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Banking
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $41,941. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $2,064 for
dividends and $18,012 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Biotechnology Portfolio would have grown to
$136,001, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
BIOTECHNOLOGY PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 71,859 $ 338 $ 63,804 $ 136,001 $ 52,547
1999 $ 27,700 $ 130 $ 21,948 $ 49,778 $ 47,029
1998 $ 23,125 $ 108 $ 15,921 $ 39,154 $ 39,278
1997 $ 22,937 $ 108 $ 10,677 $ 33,722 $ 29,094
1996 $ 24,518 $ 87 $ 7,253 $ 31,858 $ 23,061
1995 $ 16,948 $ 13 $ 5,014 $ 21,975 $ 17,120
1994 $ 18,496 $ 15 $ 5,471 $ 23,982 $ 15,947
1993 $ 15,140 $ 11 $ 4,479 $ 19,630 $ 14,719
1992 $ 22,073 $ 17 $ 2,811 $ 24,901 $ 13,300
1991 $ 17,002 $ 0 $ 598 $ 17,600 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
BIOTECHNOLOGY PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in
Biotechnology Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $29,479. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $80 for dividends and $13,907 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Brokerage and Investment Management Portfolio
would have grown to $73,500, including the effect of the fund's
maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
BROKERAGE AND INVESTMENT INDEXES
MANAGEMENT PORTFOLIO
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 53,268 $ 1,357 $ 18,875 $ 73,500 $ 52,547
1999 $ 47,987 $ 1,152 $ 12,555 $ 61,694 $ 47,029
1998 $ 46,378 $ 1,099 $ 11,412 $ 58,889 $ 39,278
1997 $ 30,033 $ 612 $ 6,730 $ 37,375 $ 29,094
1996 $ 21,557 $ 364 $ 3,986 $ 25,907 $ 23,061
1995 $ 18,083 $ 259 $ 1,611 $ 19,952 $ 17,120
1994 $ 20,694 $ 297 $ 1,843 $ 22,834 $ 15,947
1993 $ 16,579 $ 226 $ 0 $ 16,805 $ 14,719
1992 $ 14,911 $ 204 $ 0 $ 15,115 $ 13,300
1991 $ 9,677 $ 122 $ 0 $ 9,799 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Brokerage
and Investment Management Portfolio on March 1, 1990, assuming the
maximum sales charge had been in effect, the net amount invested in
fund shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $21,420. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $420 for dividends and $9,117 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the period from February 4, 1998 (commencement of operations)
to February 29, 2000, a hypothetical $10,000 investment in Business
Services and Outsourcing Portfolio would have grown to $14,955,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
BUSINESS SERVICES AND INDEXES
OUTSOURCING PORTFOLIO
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 13,580 $ 0 $ 1,375 $ 14,955 $ 13,961
1999 $ 13,163 $ 0 $ 172 $ 13,335 $ 12,495
1998* $ 10,563 $ 0 $ 0 $ 10,563 $ 10,435
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
BUSINESS SERVICES AND
OUTSOURCING PORTFOLIO
Fiscal Year Ended DJIA Cost of Living**
2000 $ 12,876 $ 10,501
1999 $ 11,655 $ 10,179
1998* $ 10,524 $ 10,019
</TABLE>
* From February 4, 1998 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Business
Services and Outsourcing Portfolio on February 4, 1998, assuming the
maximum sales charge had been in effect, the net amount invested in
fund shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $11,387. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $0 for dividends and $1,348 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Chemicals Portfolio would have grown to $29,768,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
CHEMICALS PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 14,522 $ 841 $ 14,405 $ 29,768 $ 52,547
1999 $ 13,366 $ 707 $ 12,720 $ 26,793 $ 47,029
1998 $ 19,727 $ 987 $ 14,382 $ 35,096 $ 39,278
1997 $ 18,278 $ 907 $ 10,192 $ 29,377 $ 29,094
1996 $ 16,989 $ 768 $ 7,774 $ 25,531 $ 23,061
1995 $ 14,574 $ 612 $ 4,842 $ 20,028 $ 17,120
1994 $ 13,607 $ 445 $ 4,173 $ 18,225 $ 15,947
1993 $ 12,300 $ 281 $ 2,160 $ 14,741 $ 14,719
1992 $ 13,705 $ 149 $ 709 $ 14,563 $ 13,300
1991 $ 11,105 $ 47 $ 276 $ 11,428 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
CHEMICALS PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Chemicals
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $25,601. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $597 for
dividends and $10,203 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Computers Portfolio would have grown to
$229,076, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
COMPUTERS PORTFOLIO
INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 102,065 $ 2,623 $ 124,388 $ 229,076 $ 52,547
1999 $ 54,539 $ 1,401 $ 48,383 $ 104,323 $ 47,029
1998 $ 32,769 $ 842 $ 29,071 $ 62,682 $ 39,278
1997 $ 38,489 $ 989 $ 12,616 $ 52,094 $ 29,094
1996 $ 32,730 $ 840 $ 8,451 $ 42,021 $ 23,061
1995 $ 24,465 $ 629 $ 2,408 $ 27,502 $ 17,120
1994 $ 21,554 $ 553 $ 2,122 $ 24,229 $ 15,947
1993 $ 16,074 $ 412 $ 217 $ 16,703 $ 14,719
1992 $ 15,778 $ 406 $ 213 $ 16,397 $ 13,300
1991 $ 13,122 $ 120 $ 0 $ 13,242 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
COMPUTERS PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Computers
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $58,702. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $311 for
dividends and $30,640 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Construction and Housing Portfolio would have
grown to $29,405, including the effect of the fund's maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONSTRUCTION AND HOUSING
PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 14,878 $ 318 $ 14,209 $ 29,405
1999 $ 21,345 $ 456 $ 14,180 $ 35,981
1998 $ 21,866 $ 467 $ 14,444 $ 36,777
1997 $ 18,769 $ 372 $ 7,121 $ 26,262
1996 $ 16,687 $ 310 $ 5,139 $ 22,136
1995 $ 14,324 $ 200 $ 3,654 $ 18,178
1994 $ 16,909 $ 236 $ 3,640 $ 20,785
1993 $ 13,428 $ 188 $ 2,693 $ 16,309
1992 $ 11,654 $ 162 $ 2,327 $ 14,143
1991 $ 9,640 $ 135 $ 1,070 $ 10,845
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CONSTRUCTION AND HOUSING INDEXES
PORTFOLIO
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in
Construction and Housing Portfolio on March 1, 1990, assuming the
maximum sales charge had been in effect, the net amount invested in
fund shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $24,890. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $230 for dividends and $10,314 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the period from June 29, 1990 (commencement of operations) to
February 29, 2000, a hypothetical $10,000 investment in Consumer
Industries Portfolio would have grown to $41,144, including the effect
of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CONSUMER INDUSTRIES PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 27,606 $ 234 $ 13,304 $ 41,144
1999 $ 30,856 $ 232 $ 12,016 $ 43,104
1998 $ 26,491 $ 200 $ 9,175 $ 35,866
1997 $ 20,040 $ 152 $ 5,361 $ 25,553
1996 $ 17,305 $ 130 $ 4,630 $ 22,065
1995 $ 13,493 $ 82 $ 3,397 $ 16,972
1994 $ 14,783 $ 90 $ 2,916 $ 17,789
1993 $ 12,581 $ 77 $ 1,193 $ 13,851
1992 $ 13,512 $ 83 $ 241 $ 13,836
1991* $ 10,505 $ 65 $ 0 $ 10,570
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CONSUMER INDUSTRIES PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
2000 $ 48,166 $ 44,518 $ 13,064
1999 $ 43,109 $ 40,297 $ 12,664
1998 $ 36,003 $ 36,385 $ 12,463
1997 $ 26,669 $ 28,785 $ 12,286
1996 $ 21,138 $ 22,483 $ 11,925
1995 $ 15,693 $ 16,058 $ 11,617
1994 $ 14,618 $ 14,931 $ 11,293
1993 $ 13,492 $ 12,772 $ 11,016
1992 $ 12,191 $ 12,019 $ 10,670
1991* $ 10,509 $ 10,269 $ 10,377
</TABLE>
* From June 29, 1990 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Consumer
Industries Portfolio on June 29, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $19,689. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $97 for dividends and $7,663 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the period from March 3, 1997 (commencement of operations) to
February 29, 2000, a hypothetical $10,000 investment in Cyclical
Industries Portfolio would have grown to $11,757, including the effect
of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
CYCLICAL INDUSTRIES PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 11,204 $ 0 $ 553 $ 11,757
1999 $ 11,048 $ 0 $ 546 $ 11,594
1998* $ 11,708 $ 0 $ 492 $ 12,200
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CYCLICAL INDUSTRIES PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
2000 $ 17,956 $ 15,371 $ 10,633
1999 $ 16,071 $ 13,914 $ 10,307
1998* $ 13,422 $ 12,563 $ 10,144
</TABLE>
* From March 3, 1997 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Cyclical
Industries Portfolio on March 3, 1997, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $10,537. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $0 for dividends and $534 for capital gain distributions.
The figures in the table do not include the effect of a stock fund's
trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Defense and Aerospace Portfolio would have grown
to $39,545, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
DEFENSE AND AEROSPACE PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 28,511 $ 562 $ 10,472 $ 39,545
1999 $ 28,088 $ 553 $ 9,663 $ 38,304
1998 $ 31,174 $ 615 $ 10,725 $ 42,514
1997 $ 24,014 $ 473 $ 5,310 $ 29,797
1996 $ 22,379 $ 441 $ 2,896 $ 25,716
1995 $ 16,297 $ 321 $ 828 $ 17,446
1994 $ 15,882 $ 313 $ 559 $ 16,754
1993 $ 12,513 $ 176 $ 0 $ 12,689
1992 $ 12,388 $ 174 $ 0 $ 12,562
1991 $ 10,746 $ 106 $ 0 $ 10,850
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
DEFENSE AND AEROSPACE PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Defense
and Aerospace Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $18,555. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $232 for dividends and $7,061 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the period from June 29, 1990 (commencement of operations) to
February 29, 2000, a hypothetical $10,000 investment in Developing
Communications Portfolio would have grown to $173,951, including the
effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
DEVELOPING COMMUNICATIONS
PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 79,356 $ 0 $ 94,595 $ 173,951
1999 $ 31,738 $ 0 $ 33,627 $ 65,365
1998 $ 19,536 $ 0 $ 20,563 $ 40,099
1997 $ 19,090 $ 0 $ 12,194 $ 31,284
1996 $ 18,837 $ 0 $ 12,034 $ 30,871
1995 $ 19,788 $ 0 $ 5,549 $ 25,337
1994 $ 19,061 $ 0 $ 3,238 $ 22,299
1993 $ 15,947 $ 0 $ 1,174 $ 17,121
1992 $ 13,997 $ 0 $ 1,002 $ 14,999
1991* $ 10,777 $ 0 $ 0 $ 10,777
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
DEVELOPING COMMUNICATIONS INDEXES
PORTFOLIO
Fiscal Year Ended S&P 500 DJIA Cost of Living**
2000 $ 48,166 $ 44,518 $ 13,064
1999 $ 43,109 $ 40,297 $ 12,664
1998 $ 36,003 $ 36,385 $ 12,463
1997 $ 26,669 $ 28,785 $ 12,286
1996 $ 21,138 $ 22,483 $ 11,925
1995 $ 15,693 $ 16,058 $ 11,617
1994 $ 14,618 $ 14,931 $ 11,293
1993 $ 13,492 $ 12,772 $ 11,016
1992 $ 12,191 $ 12,019 $ 10,670
1991* $ 10,509 $ 10,269 $ 10,377
</TABLE>
* From June 29, 1990 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Developing
Communications Portfolio on June 29, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $34,145. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $0 for dividends and $15,957 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Electronics Portfolio would have grown to
$285,464, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ELECTRONICS PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 136,338 $ 169 $ 148,957 $ 285,464 $ 52,547
1999 $ 53,086 $ 66 $ 49,512 $ 102,664 $ 47,029
1998 $ 39,237 $ 49 $ 36,595 $ 75,881 $ 39,278
1997 $ 42,557 $ 52 $ 18,513 $ 61,122 $ 29,094
1996 $ 31,601 $ 39 $ 13,747 $ 45,387 $ 23,061
1995 $ 22,203 $ 28 $ 4,043 $ 26,274 $ 17,120
1994 $ 19,815 $ 24 $ 3,608 $ 23,447 $ 15,947
1993 $ 16,013 $ 20 $ 0 $ 16,033 $ 14,719
1992 $ 14,657 $ 18 $ 0 $ 14,675 $ 13,300
1991 $ 11,382 $ 14 $ 0 $ 11,396 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
ELECTRONICS PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in
Electronics Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $51,970. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $11 for dividends and $27,833 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Energy Portfolio would have grown to $22,070,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ENERGY PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 13,025 $ 1,080 $ 7,965 $ 22,070 $ 52,547
1999 $ 9,148 $ 692 $ 5,393 $ 15,233 $ 47,029
1998 $ 11,949 $ 895 $ 6,686 $ 19,530 $ 39,278
1997 $ 12,011 $ 827 $ 3,383 $ 16,221 $ 29,094
1996 $ 10,692 $ 650 $ 2,136 $ 13,478 $ 23,061
1995 $ 9,074 $ 484 $ 1,588 $ 11,146 $ 17,120
1994 $ 9,429 $ 425 $ 1,288 $ 11,142 $ 15,947
1993 $ 8,928 $ 383 $ 847 $ 10,158 $ 14,719
1992 $ 7,987 $ 172 $ 758 $ 8,917 $ 13,300
1991 $ 8,719 $ 82 $ 815 $ 9,616 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
ENERGY PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Energy
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $17,408. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $648 for
dividends and $5,067 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Energy Service Portfolio would have grown to
$29,782, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
ENERGY SERVICE PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 22,876 $ 259 $ 6,647 $ 29,782
1999 $ 10,340 $ 117 $ 3,004 $ 13,461
1998 $ 22,133 $ 251 $ 4,849 $ 27,233
1997 $ 16,161 $ 183 $ 2,003 $ 18,347
1996 $ 12,710 $ 136 $ 1,026 $ 13,872
1995 $ 9,455 $ 75 $ 439 $ 9,969
1994 $ 9,210 $ 56 $ 0 $ 9,266
1993 $ 8,697 $ 14 $ 0 $ 8,711
1992 $ 7,409 $ 13 $ 0 $ 7,422
1991 $ 10,664 $ 18 $ 0 $ 10,682
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
ENERGY SERVICE PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Energy
Service Portfolio on March 1, 1990, assuming the maximum sales charge
had been in effect, the net amount invested in fund shares was $9,700.
The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $14,931. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $111 for dividends and $4,186 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Environmental Services Portfolio would have
grown to $9,724, including the effect of the fund's maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ENVIRONMENTAL SERVICES INDEXES
PORTFOLIO
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 8,532 $ 0 $ 1,192 $ 9,724 $ 52,547
1999 $ 11,385 $ 0 $ 1,580 $ 12,965 $ 47,029
1998 $ 14,675 $ 0 $ 1,996 $ 16,671 $ 39,278
1997 $ 12,927 $ 0 $ 1,759 $ 14,686 $ 29,094
1996 $ 11,073 $ 0 $ 1,487 $ 12,560 $ 23,061
1995 $ 9,156 $ 0 $ 696 $ 9,852 $ 17,120
1994 $ 10,636 $ 0 $ 808 $ 11,444 $ 15,947
1993 $ 10,128 $ 0 $ 769 $ 10,897 $ 14,719
1992 $ 11,626 $ 0 $ 446 $ 12,072 $ 13,300
1991 $ 11,581 $ 0 $ 0 $ 11,581 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
ENVIRONMENTAL SERVICES
PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in
Environmental Services Portfolio on March 1, 1990, assuming the
maximum sales charge had been in effect, the net amount invested in
fund shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $11,420. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $0 for dividends and $1,355 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Financial Services Portfolio would have grown to
$55,750, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL SERVICES PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 26,484 $ 3,145 $ 26,121 $ 55,750
1999 $ 32,839 $ 3,468 $ 28,922 $ 65,229
1998 $ 33,641 $ 3,439 $ 23,082 $ 60,162
1997 $ 27,015 $ 2,440 $ 13,188 $ 42,643
1996 $ 21,400 $ 1,648 $ 8,414 $ 31,462
1995 $ 15,710 $ 1,074 $ 5,842 $ 22,626
1994 $ 16,690 $ 834 $ 4,082 $ 21,606
1993 $ 17,358 $ 788 $ 1,345 $ 19,491
1992 $ 13,612 $ 459 $ 0 $ 14,071
1991 $ 9,198 $ 211 $ 0 $ 9,409
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL SERVICES PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Financial
Services Portfolio on March 1, 1990, assuming the maximum sales charge
had been in effect, the net amount invested in fund shares was $9,700.
The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $35,660. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $1,511 for dividends and $15,214 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Food and Agriculture Portfolio would have grown
to $29,531, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FOOD AND AGRICULTURE PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 14,069 $ 1,183 $ 14,279 $ 29,531
1999 $ 20,706 $ 1,276 $ 18,952 $ 40,934
1998 $ 21,540 $ 1,193 $ 15,228 $ 37,961
1997 $ 19,652 $ 819 $ 10,246 $ 30,717
1996 $ 18,601 $ 614 $ 7,827 $ 27,042
1995 $ 14,356 $ 370 $ 4,881 $ 19,607
1994 $ 13,897 $ 309 $ 3,596 $ 17,802
1993 $ 13,619 $ 259 $ 2,061 $ 15,939
1992 $ 13,341 $ 204 $ 1,215 $ 14,760
1991 $ 11,907 $ 134 $ 389 $ 12,430
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FOOD AND AGRICULTURE PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Food and
Agriculture Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $28,525. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $896 for dividends and $11,417 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Gold Portfolio would have grown to $7,918,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
GOLD PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 7,346 $ 0 $ 572 $ 7,918 $ 52,547
1999 $ 6,986 $ 0 $ 544 $ 7,530 $ 47,029
1998 $ 8,285 $ 0 $ 646 $ 8,931 $ 39,278
1997 $ 15,407 $ 0 $ 302 $ 15,709 $ 29,094
1996 $ 14,807 $ 0 $ 0 $ 14,807 $ 23,061
1995 $ 10,071 $ 0 $ 0 $ 10,071 $ 17,120
1994 $ 12,376 $ 0 $ 0 $ 12,376 $ 15,947
1993 $ 7,728 $ 0 $ 0 $ 7,728 $ 14,719
1992 $ 7,373 $ 0 $ 0 $ 7,373 $ 13,300
1991 $ 7,433 $ 0 $ 0 $ 7,433 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
GOLD PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Gold
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $10,991. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $0 for
dividends and $978 for capital gain distributions. The figures in the
table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Health Care Portfolio would have grown to
$77,457, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
HEALTH CARE PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 28,586 $ 1,722 $ 47,149 $ 77,457 $ 52,547
1999 $ 30,075 $ 1,761 $ 44,738 $ 76,574 $ 47,029
1998 $ 24,882 $ 1,363 $ 33,957 $ 60,202 $ 39,278
1997 $ 22,392 $ 1,106 $ 20,615 $ 44,113 $ 29,094
1996 $ 21,959 $ 830 $ 13,846 $ 36,635 $ 23,061
1995 $ 16,639 $ 464 $ 9,124 $ 26,227 $ 17,120
1994 $ 13,837 $ 203 $ 5,944 $ 19,984 $ 15,947
1993 $ 11,490 $ 150 $ 4,935 $ 16,575 $ 14,719
1992 $ 17,376 $ 166 $ 4,424 $ 21,966 $ 13,300
1991 $ 14,294 $ 56 $ 1,609 $ 15,959 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
HEALTH CARE PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Health
Care Portfolio on March 1, 1990, assuming the maximum sales charge had
been in effect, the net amount invested in fund shares was $9,700. The
cost of the initial investment ($10,000) together with the aggregate
cost of reinvested dividends and capital gain distributions for the
period covered (their cash value at the time they were reinvested)
amounted to $43,619. If distributions had not been reinvested, the
amount of distributions earned from the fund over time would have been
smaller, and cash payments for the period would have amounted to $688
for dividends and $18,436 for capital gain distributions. The figures
in the table do not include the effect of a stock fund's trading fee
or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Home Finance Portfolio would have grown to
$56,044, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
HOME FINANCE PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 32,671 $ 2,528 $ 20,845 $ 56,044 $ 52,547
1999 $ 44,474 $ 3,082 $ 27,050 $ 74,606 $ 47,029
1998 $ 56,383 $ 3,793 $ 32,066 $ 92,242 $ 39,278
1997 $ 48,606 $ 2,800 $ 18,267 $ 69,673 $ 29,094
1996 $ 35,186 $ 1,615 $ 10,435 $ 47,236 $ 23,061
1995 $ 25,275 $ 963 $ 6,740 $ 32,978 $ 17,120
1994 $ 26,448 $ 831 $ 2,051 $ 29,330 $ 15,947
1993 $ 23,436 $ 726 $ 359 $ 24,521 $ 14,719
1992 $ 16,188 $ 493 $ 0 $ 16,681 $ 13,300
1991 $ 10,588 $ 190 $ 0 $ 10,778 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
HOME FINANCE PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Home
Finance Portfolio on March 1, 1990, assuming the maximum sales charge
had been in effect, the net amount invested in fund shares was $9,700.
The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $35,247. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $1,564 for dividends and $16,991 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Industrial Equipment Portfolio would have grown
to $42,187, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
INDUSTRIAL EQUIPMENT PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 21,667 $ 506 $ 20,014 $ 42,187
1999 $ 20,722 $ 470 $ 14,265 $ 35,457
1998 $ 21,281 $ 482 $ 13,344 $ 35,107
1997 $ 20,952 $ 450 $ 6,515 $ 27,917
1996 $ 20,624 $ 403 $ 2,582 $ 23,609
1995 $ 16,460 $ 283 $ 507 $ 17,250
1994 $ 16,928 $ 291 $ 370 $ 17,589
1993 $ 12,353 $ 204 $ 0 $ 12,557
1992 $ 11,753 $ 195 $ 0 $ 11,948
1991 $ 9,708 $ 66 $ 0 $ 9,774
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INDUSTRIAL EQUIPMENT PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Industrial
Equipment Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $28,367. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $271 for dividends and $13,125 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Industrial Materials Portfolio would have grown
to $19,343, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
INDUSTRIAL MATERIALS PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 14,632 $ 871 $ 3,840 $ 19,343
1999 $ 15,139 $ 874 $ 3,973 $ 19,986
1998 $ 18,625 $ 1,078 $ 4,887 $ 24,590
1997 $ 20,607 $ 1,162 $ 1,299 $ 23,068
1996 $ 19,422 $ 1,049 $ 0 $ 20,471
1995 $ 17,232 $ 823 $ 0 $ 18,055
1994 $ 16,144 $ 628 $ 0 $ 16,772
1993 $ 12,993 $ 461 $ 0 $ 13,454
1992 $ 12,337 $ 377 $ 0 $ 12,714
1991 $ 9,268 $ 241 $ 0 $ 9,509
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
INDUSTRIAL MATERIALS PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Industrial
Materials Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $15,493. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $738 for dividends and $4,150 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Insurance Portfolio would have grown to $36,356,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
INSURANCE PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 18,894 $ 440 $ 17,022 $ 36,356 $ 52,547
1999 $ 28,806 $ 671 $ 17,207 $ 46,684 $ 47,029
1998 $ 28,779 $ 669 $ 13,055 $ 42,503 $ 39,278
1997 $ 22,298 $ 520 $ 6,945 $ 29,763 $ 29,094
1996 $ 18,299 $ 399 $ 4,503 $ 23,201 $ 23,061
1995 $ 14,567 $ 265 $ 3,083 $ 17,915 $ 17,120
1994 $ 13,268 $ 241 $ 2,808 $ 16,317 $ 15,947
1993 $ 14,752 $ 259 $ 1,512 $ 16,523 $ 14,719
1992 $ 12,831 $ 202 $ 0 $ 13,033 $ 13,300
1991 $ 10,787 $ 0 $ 0 $ 10,787 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
INSURANCE PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Insurance
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $29,895. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $273 for
dividends and $13,644 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Leisure Portfolio would have grown to $59,976,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
LEISURE PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 31,967 $ 326 $ 27,683 $ 59,976 $ 52,547
1999 $ 30,726 $ 313 $ 21,624 $ 52,663 $ 47,029
1998 $ 23,505 $ 239 $ 14,546 $ 38,290 $ 39,278
1997 $ 18,046 $ 183 $ 7,767 $ 25,996 $ 29,094
1996 $ 17,419 $ 178 $ 6,007 $ 23,604 $ 23,061
1995 $ 15,359 $ 157 $ 2,980 $ 18,496 $ 17,120
1994 $ 17,091 $ 174 $ 1,432 $ 18,697 $ 15,947
1993 $ 13,495 $ 138 $ 0 $ 13,633 $ 14,719
1992 $ 12,054 $ 123 $ 0 $ 12,177 $ 13,300
1991 $ 9,742 $ 99 $ 0 $ 9,841 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
LEISURE PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Leisure
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $27,987. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $87 for
dividends and $12,598 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Medical Delivery Portfolio would have grown to
$27,367, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MEDICAL DELIVERY PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 14,077 $ 58 $ 13,232 $ 27,367
1999 $ 17,510 $ 71 $ 16,458 $ 34,039
1998 $ 25,989 $ 107 $ 22,164 $ 48,260
1997 $ 25,961 $ 107 $ 13,498 $ 39,566
1996 $ 26,613 $ 109 $ 9,084 $ 35,806
1995 $ 21,272 $ 87 $ 5,332 $ 26,691
1994 $ 18,611 $ 0 $ 3,701 $ 22,312
1993 $ 13,270 $ 0 $ 2,639 $ 15,909
1992 $ 20,097 $ 0 $ 1,974 $ 22,071
1991 $ 15,445 $ 0 $ 459 $ 15,904
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MEDICAL DELIVERY PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Medical
Delivery Portfolio on March 1, 1990, assuming the maximum sales charge
had been in effect, the net amount invested in fund shares was $9,700.
The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $30,709. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $64 for dividends and $14,674 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the period from April 28, 1998 (commencement of operations) to
February 29, 2000, a hypothetical $10,000 investment in Medical
Equipment and Systems Portfolio would have grown to $14,751, including
the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
MEDICAL EQUIPMENT AND SYSTEMS
PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 14,269 $ 0 $ 482 $ 14,751
1999* $ 11,737 $ 0 $ 0 $ 11,737
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MEDICAL EQUIPMENT AND SYSTEMS INDEXES
PORTFOLIO
Fiscal Year Ended S&P 500 DJIA Cost of Living**
2000 $ 12,910 $ 11,720 $ 10,443
1999* $ 11,554 $ 10,609 $ 10,123
</TABLE>
* From April 28, 1998 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Medical
Equipment and Systems Portfolio on April 28, 1998, assuming the
maximum sales charge had been in effect, the net amount invested in
fund shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $10,409. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $0 for dividends and $407 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Money Market Portfolio would have grown to
$15,679, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MONEY MARKET PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 9,700 $ 5,979 $ 0 $ 15,679 $ 52,547
1999 $ 9,700 $ 5,221 $ 0 $ 14,921 $ 47,029
1998 $ 9,700 $ 4,500 $ 0 $ 14,200 $ 39,278
1997 $ 9,700 $ 3,790 $ 0 $ 13,490 $ 29,094
1996 $ 9,700 $ 3,146 $ 0 $ 12,846 $ 23,061
1995 $ 9,700 $ 2,469 $ 0 $ 12,169 $ 17,120
1994 $ 9,700 $ 1,969 $ 0 $ 11,669 $ 15,947
1993 $ 9,700 $ 1,671 $ 0 $ 11,371 $ 14,719
1992 $ 9,700 $ 1,310 $ 0 $ 11,010 $ 13,300
1991 $ 9,700 $ 754 $ 0 $ 10,454 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MONEY MARKET PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Money
Market Portfolio on March 1, 1990, assuming the maximum sales charge
had been in effect, the net amount invested in fund shares was $9,700.
The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $15,979. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $4,668 for dividends. The money market fund did not
distribute any capital gains during the period.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Multimedia Portfolio would have grown to
$67,084, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
MULTIMEDIA PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 41,934 $ 39 $ 25,111 $ 67,084 $ 52,547
1999 $ 33,875 $ 32 $ 18,659 $ 52,566 $ 47,029
1998 $ 26,375 $ 25 $ 12,059 $ 38,459 $ 39,278
1997 $ 19,565 $ 18 $ 7,420 $ 27,003 $ 29,094
1996 $ 21,348 $ 20 $ 6,914 $ 28,282 $ 23,061
1995 $ 17,554 $ 0 $ 3,876 $ 21,430 $ 17,120
1994 $ 18,748 $ 0 $ 849 $ 19,597 $ 15,947
1993 $ 14,342 $ 0 $ 189 $ 14,531 $ 14,719
1992 $ 12,645 $ 0 $ 0 $ 12,645 $ 13,300
1991 $ 9,582 $ 0 $ 0 $ 9,582 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
MULTIMEDIA PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Multimedia
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $22,764. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $16 for
dividends and $9,920 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the period from April 21, 1993 (commencement of operations) to
February 29, 2000, a hypothetical $10,000 investment in Natural Gas
Portfolio would have grown to $16,099, including the effect of the
fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NATURAL GAS PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 14,754 $ 381 $ 964 $ 16,099 $ 35,564
1999 $ 10,272 $ 183 $ 671 $ 11,126 $ 31,830
1998 $ 12,823 $ 103 $ 838 $ 13,764 $ 26,583
1997 $ 12,125 $ 97 $ 436 $ 12,658 $ 19,691
1996 $ 11,019 $ 78 $ 159 $ 11,256 $ 15,608
1995 $ 8,711 $ 20 $ 125 $ 8,856 $ 11,587
1994* $ 9,196 $ 0 $ 132 $ 9,328 $ 10,793
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
NATURAL GAS PORTFOLIO
Fiscal Year Ended DJIA Cost of Living**
2000 $ 34,019 $ 11,785
1999 $ 30,794 $ 11,424
1998 $ 27,804 $ 11,243
1997 $ 21,997 $ 11,083
1996 $ 17,180 $ 10,757
1995 $ 12,271 $ 10,479
1994* $ 11,410 $ 10,188
</TABLE>
* From April 21, 1993 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Natural
Gas Portfolio on April 21, 1993, assuming the maximum sales charge had
been in effect, the net amount invested in fund shares was $9,700. The
cost of the initial investment ($10,000) together with the aggregate
cost of reinvested dividends and capital gain distributions for the
period covered (their cash value at the time they were reinvested)
amounted to $11,027. If distributions had not been reinvested, the
amount of distributions earned from the fund over time would have been
smaller, and cash payments for the period would have amounted to $262
for dividends and $728 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the period from March 3, 1997 (commencement of operations) to
February 29, 2000, a hypothetical $10,000 investment in Natural
Resources Portfolio would have grown to $11,652, including the effect
of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
NATURAL RESOURCES PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 11,349 $ 0 $ 293 $ 11,652
1999 $ 7,653 $ 0 $ 198 $ 7,851
1998* $ 10,146 $ 0 $ 262 $ 10,408
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
NATURAL RESOURCES PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living**
2000 $ 17,956 $ 15,371 $ 10,633
1999 $ 16,071 $ 13,914 $ 10,307
1998* $ 13,422 $ 12,563 $ 10,144
</TABLE>
* From March 3, 1997 (commencement of operations).
** From month-end closest to initial investment date.
Explanatory Notes: With an initial investment of $10,000 in Natural
Resources Portfolio on March 3, 1997, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $10,252. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $0 for dividends and $252 for capital gain distributions.
The figures in the table do not include the effect of a stock fund's
trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Paper and Forest Products Portfolio would have
grown to $27,932, including the effect of the fund's maximum sales
charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PAPER AND FOREST PRODUCTS
PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 18,798 $ 1,152 $ 7,982 $ 27,932
1999 $ 15,644 $ 959 $ 6,643 $ 23,246
1998 $ 19,213 $ 1,179 $ 7,618 $ 28,010
1997 $ 18,340 $ 1,075 $ 4,829 $ 24,244
1996 $ 17,619 $ 925 $ 3,323 $ 21,867
1995 $ 17,925 $ 864 $ 1,239 $ 20,028
1994 $ 16,627 $ 803 $ 0 $ 17,430
1993 $ 13,634 $ 649 $ 0 $ 14,283
1992 $ 12,744 $ 527 $ 0 $ 13,271
1991 $ 10,014 $ 169 $ 0 $ 10,183
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PAPER AND FOREST PRODUCTS INDEXES
PORTFOLIO
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Paper and
Forest Products Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $18,190. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $670 for dividends and $6,105 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Retailing Portfolio would have grown to $54,413,
including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
RETAILING PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 37,420 $ 0 $ 16,993 $ 54,413 $ 52,547
1999 $ 50,096 $ 0 $ 11,845 $ 61,941 $ 47,029
1998 $ 37,138 $ 0 $ 8,187 $ 45,325 $ 39,278
1997 $ 24,677 $ 0 $ 5,023 $ 29,700 $ 29,094
1996 $ 20,684 $ 0 $ 4,151 $ 24,835 $ 23,061
1995 $ 17,745 $ 0 $ 3,561 $ 21,306 $ 17,120
1994 $ 18,487 $ 0 $ 3,710 $ 22,197 $ 15,947
1993 $ 17,715 $ 0 $ 1,485 $ 19,200 $ 14,719
1992 $ 17,470 $ 0 $ 489 $ 17,959 $ 13,300
1991 $ 11,548 $ 0 $ 27 $ 11,575 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
RETAILING PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Retailing
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $23,901. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $0 for
dividends and $11,682 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Software and Computer Services Portfolio would
have grown to $162,930, including the effect of the fund's maximum
sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SOFTWARE AND COMPUTER INDEXES
SERVICES PORTFOLIO
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 67,823 $ 0 $ 95,107 $ 162,930 $ 52,547
1999 $ 36,845 $ 0 $ 44,282 $ 81,127 $ 47,029
1998 $ 28,564 $ 0 $ 32,633 $ 61,197 $ 39,278
1997 $ 24,899 $ 0 $ 20,264 $ 45,163 $ 29,094
1996 $ 23,363 $ 0 $ 15,522 $ 38,885 $ 23,061
1995 $ 18,761 $ 0 $ 8,979 $ 27,740 $ 17,120
1994 $ 18,645 $ 0 $ 8,558 $ 27,203 $ 15,947
1993 $ 17,825 $ 0 $ 2,600 $ 20,425 $ 14,719
1992 $ 15,044 $ 0 $ 2,193 $ 17,237 $ 13,300
1991 $ 12,165 $ 0 $ 0 $ 12,165 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
SOFTWARE AND COMPUTER
SERVICES PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Software
and Computer Services Portfolio on March 1, 1990, assuming the maximum
sales charge had been in effect, the net amount invested in fund
shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $44,246. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $0 for dividends and $20,316 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Technology Portfolio would have grown to
$244,139, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
TECHNOLOGY PORTFOLIO INDEXES
Fiscal Year
Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500
Investment Distributions Gain Distributions
2000 $ 94,596 $ 982 $ 148,561 $ 244,139 $ 52,547
1999 $ 39,930 $ 415 $ 45,585 $ 85,930 $ 47,029
1998 $ 25,653 $ 266 $ 29,286 $ 55,205 $ 39,278
1997 $ 27,859 $ 289 $ 16,043 $ 44,191 $ 29,094
1996 $ 26,396 $ 274 $ 12,561 $ 39,231 $ 23,061
1995 $ 20,303 $ 211 $ 5,517 $ 26,031 $ 17,120
1994 $ 20,197 $ 210 $ 4,477 $ 24,884 $ 15,947
1993 $ 16,715 $ 97 $ 1,537 $ 18,349 $ 14,719
1992 $ 17,266 $ 99 $ 0 $ 17,365 $ 13,300
1991 $ 12,722 $ 0 $ 0 $ 12,722 $ 11,465
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TECHNOLOGY PORTFOLIO
Fiscal Year Ended DJIA Cost of Living
2000 $ 49,417 $ 13,258
1999 $ 44,732 $ 12,852
1998 $ 40,389 $ 12,648
1997 $ 31,953 $ 12,469
1996 $ 24,957 $ 12,102
1995 $ 17,825 $ 11,789
1994 $ 16,574 $ 11,461
1993 $ 14,177 $ 11,180
1992 $ 13,342 $ 10,828
1991 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Technology
Portfolio on March 1, 1990, assuming the maximum sales charge had been
in effect, the net amount invested in fund shares was $9,700. The cost
of the initial investment ($10,000) together with the aggregate cost
of reinvested dividends and capital gain distributions for the period
covered (their cash value at the time they were reinvested) amounted
to $56,891. If distributions had not been reinvested, the amount of
distributions earned from the fund over time would have been smaller,
and cash payments for the period would have amounted to $140 for
dividends and $26,638 for capital gain distributions. The figures in
the table do not include the effect of a stock fund's trading fee or
exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Telecommunications Portfolio would have grown to
$85,657, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
TELECOMMUNICATIONS PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 40,633 $ 3,255 $ 41,769 $ 85,657
1999 $ 24,915 $ 1,995 $ 19,418 $ 46,328
1998 $ 21,499 $ 1,722 $ 14,688 $ 37,909
1997 $ 16,838 $ 1,349 $ 7,685 $ 25,872
1996 $ 18,075 $ 1,279 $ 4,635 $ 23,989
1995 $ 15,444 $ 921 $ 2,705 $ 19,070
1994 $ 14,945 $ 631 $ 2,085 $ 17,661
1993 $ 13,773 $ 499 $ 217 $ 14,489
1992 $ 11,758 $ 355 $ 0 $ 12,113
1991 $ 9,583 $ 188 $ 0 $ 9,771
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TELECOMMUNICATIONS PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in
Telecommunications Portfolio on March 1, 1990, assuming the maximum
sales charge had been in effect, the net amount invested in fund
shares was $9,700. The cost of the initial investment ($10,000)
together with the aggregate cost of reinvested dividends and capital
gain distributions for the period covered (their cash value at the
time they were reinvested) amounted to $32,419. If distributions had
not been reinvested, the amount of distributions earned from the fund
over time would have been smaller, and cash payments for the period
would have amounted to $918 for dividends and $13,789 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Transportation Portfolio would have grown to
$35,427, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
TRANSPORTATION PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 16,476 $ 55 $ 18,896 $ 35,427
1999 $ 19,683 $ 67 $ 14,932 $ 34,682
1998 $ 22,277 $ 75 $ 12,941 $ 35,293
1997 $ 17,474 $ 60 $ 7,471 $ 25,005
1996 $ 17,230 $ 59 $ 6,600 $ 23,889
1995 $ 16,138 $ 54 $ 4,957 $ 21,149
1994 $ 17,034 $ 58 $ 2,879 $ 19,971
1993 $ 14,684 $ 49 $ 934 $ 15,667
1992 $ 12,160 $ 42 $ 505 $ 12,707
1991 $ 8,867 $ 0 $ 368 $ 9,235
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
TRANSPORTATION PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in
Transportation Portfolio on March 1, 1990, assuming the maximum sales
charge had been in effect, the net amount invested in fund shares was
$9,700. The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $30,230. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $31 for dividends and $13,638 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
During the 10-year period ended February 29, 2000, a hypothetical
$10,000 investment in Utilities Growth Portfolio would have grown to
$52,482, including the effect of the fund's maximum sales charge.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
UTILITIES GROWTH PORTFOLIO
Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value
Investment Distributions Gain Distributions
2000 $ 20,074 $ 5,905 $ 26,503 $ 52,482
1999 $ 17,959 $ 5,003 $ 17,483 $ 40,445
1998 $ 15,603 $ 4,207 $ 10,791 $ 30,601
1997 $ 13,407 $ 3,327 $ 5,734 $ 22,468
1996 $ 12,549 $ 2,779 $ 3,691 $ 19,019
1995 $ 10,172 $ 1,952 $ 2,992 $ 15,116
1994 $ 10,677 $ 1,563 $ 2,844 $ 15,084
1993 $ 12,100 $ 1,333 $ 1,279 $ 14,712
1992 $ 10,665 $ 736 $ 568 $ 11,969
1991 $ 10,304 $ 189 $ 182 $ 10,675
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
UTILITIES GROWTH PORTFOLIO INDEXES
Fiscal Year Ended S&P 500 DJIA Cost of Living
2000 $ 52,547 $ 49,417 $ 13,258
1999 $ 47,029 $ 44,732 $ 12,852
1998 $ 39,278 $ 40,389 $ 12,648
1997 $ 29,094 $ 31,953 $ 12,469
1996 $ 23,061 $ 24,957 $ 12,102
1995 $ 17,120 $ 17,825 $ 11,789
1994 $ 15,947 $ 16,574 $ 11,461
1993 $ 14,719 $ 14,177 $ 11,180
1992 $ 13,300 $ 13,342 $ 10,828
1991 $ 11,465 $ 11,399 $ 10,531
</TABLE>
Explanatory Notes: With an initial investment of $10,000 in Utilities
Growth Portfolio on March 1, 1990, assuming the maximum sales charge
had been in effect, the net amount invested in fund shares was $9,700.
The cost of the initial investment ($10,000) together with the
aggregate cost of reinvested dividends and capital gain distributions
for the period covered (their cash value at the time they were
reinvested) amounted to $32,739. If distributions had not been
reinvested, the amount of distributions earned from the fund over time
would have been smaller, and cash payments for the period would have
amounted to $2,505 for dividends and $10,834 for capital gain
distributions. The figures in the table do not include the effect of a
stock fund's trading fee or exchange fee.
AFTER-TAX RESULTS (STOCK FUNDS). The following table shows each fund's
pre-liquidation and post-liquidation after-tax returns, as provided by
Morningstar, Inc., for the fiscal periods ended February 29, 2000.
The pre-liquidation calculation assumes (i) that taxes are paid on
distributions at the time of the distribution, (ii) that shares were
held for the entire measurement period, and (iii) that no taxes have
been paid on accumulated capital appreciation. The post-liquidation
calculation assumes (i) that taxes are paid on distributions at the
time of the distribution and (ii) that shares have been sold at the
end of the measurement period. The post-liquidation returns also
include the effect of each fund's trading fee and maximum sales
charge.
The pre-liquidation and post-liquidation after-tax calculations assume
the highest individual federal income and capital gains tax rates in
effect at the time the distribution is paid. The applicable tax rate
is applied to distributions as if they were paid in cash and the
remainder of the distribution is assumed to be reinvested in shares of
the fund. State and local taxes are not considered.
The post-liquidation after-tax calculation assumes the long-term
capital gains tax rate on accumulated capital appreciation for all
periods. If there would have been a capital loss on liquidation, the
loss is recorded as a tax benefit, increasing the post-liquidation
return.
<TABLE>
<CAPTION>
Average Annual Returns
<S> <C> <C> <C> <C>
Fund One Year Five Years Ten Years
Air Transportation - 4.06% 17.15% 11.93%
Pre-Liquidation Returns
Air Transportation - 2.56% 14.54% 10.45%
Post-Liquidation Returns
Automotive - Pre-Liquidation -17.40% 2.94% 8.85%
Returns
Automotive - Post-Liquidation -15.90% 2.75% 8.05%
Returns
Banking - Pre-Liquidation -25.22% 14.88% 16.24%
Returns
Banking - Post-Liquidation -19.03% 13.59% 15.16%
Returns
Biotechnology - 169.04% 41.36% 28.05%
Pre-Liquidation Returns
Biotechnology - 129.71% 36.10% 25.45%
Post-Liquidation Returns
Brokerage and Investment 17.41% 28.01% 21.19%
Management - Pre-Liquidation
Returns
Brokerage and Investment 12.30% 24.00% 18.92%
Management -
Post-Liquidation Returns
Business Services and 9.21% n/a n/a
Outsourcing -
Pre-Liquidation Returns
Business Services and 5.97% n/a n/a
Outsourcing -
Post-Liquidation Returns
Chemicals - Pre-Liquidation 10.30% 5.95% 9.61%
Returns
Chemicals - Post-Liquidation 5.94% 5.55% 8.88%
Returns
Computers - Pre-Liquidation 110.25% 45.70% 33.42%
Returns
Computers - Post-Liquidation 86.28% 40.57% 30.77%
Returns
Construction and Housing - -21.62% 6.99% 9.34%
Pre-Liquidation Returns
Construction and Housing - -17.24% 6.49% 8.57%
Post-Liquidation Returns
Consumer Industries - -6.13% 18.08% n/a
Pre-Liquidation Returns
Consumer Industries - -6.21% 15.20% n/a
Post-Liquidation Returns
Cyclical Industries - 1.32% n/a n/a
Pre-Liquidation Returns
Cyclical Industries - -1.38% n/a n/a
Post-Liquidation Returns
Defense and Aerospace - 2.74% 15.52% 13.72%
Pre-Liquidation Returns
Defense and Aerospace - -0.03% 13.06% 12.01%
Post-Liquidation Returns
Developing Communications - 160.93% 41.48% n/a
Pre-Liquidation Returns
Developing Communications - 123.77% 36.21% n/a
Post-Liquidation Returns
Electronics - Pre-Liquidation 172.41% 54.88% 36.72%
Returns
Electronics - 133.39% 48.75% 33.79%
Post-Liquidation Returns
Energy - Pre-Liquidation 43.87% 12.51% 6.84%
Returns
Energy - Post-Liquidation 31.92% 10.70% 6.05%
Returns
Energy Service - 121.47% 23.07% 11.07%
Pre-Liquidation Returns
Energy Service - 91.86% 19.67% 9.54%
Post-Liquidation Returns
Environmental Services - -25.01% -0.70% -0.40%
Pre-Liquidation Returns
Environmental Services - -21.80% -0.87% -0.36%
Post-Liquidation Returns
Financial Services - -15.64% 17.56% 16.67%
Pre-Liquidation Returns
Financial Services - -13.67% 15.59% 15.32%
Post-Liquidation Returns
Food and Agriculture - -28.94% 6.12% 9.71%
Pre-Liquidation Returns
Food and Agriculture - -24.09% 6.05% 9.19%
Post-Liquidation Returns
Gold - Pre-Liquidation Returns 5.16% -5.09% -2.21%
Gold - Post-Liquidation Returns 1.60% -4.10% -1.79%
Fund One Year Five Years Ten Years
Health Care - Pre-Liquidation -0.37% 20.61% 19.57%
Returns
Health Care - -1.84% 18.21% 18.01%
Post-Liquidation Returns
Home Finance - -25.29% 9.45% 17.24%
Pre-Liquidation Returns
Home Finance - -21.71% 8.36% 15.78%
Post-Liquidation Returns
Industrial Equipment - 15.12% 15.01% 13.41%
Pre-Liquidation Returns
Industrial Equipment - 11.26% 13.50% 12.17%
Post-Liquidation Returns
Industrial Materials - -3.27% -0.22% 6.12%
Pre-Liquidation Returns
Industrial Materials - -4.92% 0.02% 5.29%
Post-Liquidation Returns
Insurance - Pre-Liquidation -23.89% 12.74% 12.14%
Returns
Insurance - Post-Liquidation -18.25% 11.78% 11.26%
Returns
Leisure - Pre-Liquidation 11.58% 23.21% 17.68%
Returns
Leisure -Post-Liquidation 8.11% 20.18% 15.91%
Returns
Medical Delivery - -19.60% -1.74% 8.93%
Pre-Liquidation Returns
Medical Delivery - -17.61% -0.11% 8.67%
Post-Liquidation Returns
Medical Equipment and Systems 24.35% n/a n/a
- - Pre-Liquidation Returns
Medical Equipment and Systems 16.93% n/a n/a
- - Post-Liquidation Returns
Multimedia - Pre-Liquidation 26.63% 23.87% 19.67%
Returns
Multimedia - Post-Liquidation 18.81% 20.34% 17.57%
Returns
Natural Gas - Pre-Liquidation 44.26% 12.18% n/a
Returns
Natural Gas - 32.04% 9.74% n/a
Post-Liquidation Returns
Natural Resources - 48.29% n/a n/a
Pre-Liquidation Returns
Natural Resources - 35.07% n/a n/a
Post-Liquidation Returns
Paper and Forest Products - 20.16% 4.89% 9.70%
Pre-Liquidation Returns
Paper and Forest Products - 13.25% 4.17% 8.50%
Post-Liquidation Returns
Retailing - Pre-Liquidation -15.37% 19.67% 17.62%
Returns
Retailing - Post-Liquidation -12.14% 16.85% 15.78%
Returns
Software and Computer 97.28% 38.22% 28.81%
Services - Pre-Liquidation
Returns
Software and Computer 74.82% 33.48% 26.32%
Services - Post-Liquidation
Returns
Technology - Pre-Liquidation 166.41% 48.96% 33.63%
Returns
Technology - Post-Liquidation 129.81% 43.42% 30.91%
Returns
Telecommunications - 78.32% 30.99% 21.58%
Pre-Liquidation Returns
Telecommunications - 60.71% 27.13% 19.53%
Post-Liquidation Returns
Transportation - -4.74% 7.14% 10.94%
Pre-Liquidation Returns
Transportation - -3.53% 6.68% 10.12%
Post-Liquidation Returns
Utilities Growth - 24.27% 24.28% 15.13%
Pre-Liquidation Returns
Utilities Growth - 18.63% 21.51% 13.82%
Post-Liquidation Returns
</TABLE>
PERFORMANCE COMPARISONS. A fund's performance may be compared to the
performance of other mutual funds in general, or to the performance of
particular types of mutual funds. These comparisons may be expressed
as mutual fund rankings prepared by Lipper Inc. (Lipper), an
independent service located in Summit, New Jersey that monitors the
performance of mutual funds. Generally, Lipper rankings are based on
return, assume reinvestment of distributions, do not take sales
charges or trading fees into consideration, and are prepared without
regard to tax consequences. Lipper may also rank based on yield. In
addition to the mutual fund rankings, a fund's performance may be
compared to stock, bond, and money market mutual fund performance
indexes prepared by Lipper or other organizations. When comparing
these indexes, it is important to remember the risk and return
characteristics of each type of investment. For example, while stock
mutual funds may offer higher potential returns, they also carry the
highest degree of share price volatility. Likewise, money market funds
may offer greater stability of principal, but generally do not offer
the higher potential returns available from stock mutual funds.
From time to time, a fund's performance may also be compared to other
mutual funds tracked by financial or business publications and
periodicals. For example, a fund may quote Morningstar, Inc. in its
advertising materials. Morningstar, Inc. is a mutual fund rating
service that rates mutual funds on the basis of risk-adjusted
performance. Rankings that compare the performance of Fidelity funds
to one another in appropriate categories over specific periods of time
may also be quoted in advertising.
A fund's performance may also be compared to that of the benchmark
index representing the universe of securities in which the fund may
invest. The return of the index reflects reinvestment of all dividends
and capital gains paid by securities included in the index. Unlike a
fund's returns, however, the index's returns do not reflect brokerage
commissions, transaction fees, or other costs of investing directly in
the securities included in the index.
Each stock fund may compare its performance to that of the Standard &
Poor's 500 Index, a market capitalization-weighted index of common
stocks.
Each of Consumer Industries, Food and Agriculture, Leisure,
Multimedia, and Retailing may also compare its performance to that of
the Goldman Sachs Consumer Industries Index, a market
capitalization-weighted index of 301 stocks designed to measure the
performance of companies in the consumer industries sector. Issues in
the index include providers of consumer services and products,
including producers of beverages-alcoholic and non-alcoholic, food,
personal care, household products and tobacco companies.
Each of Air Transportation, Automotive, Chemicals, Construction and
Housing, Cyclical Industries, Defense and Aerospace, Environmental
Services, Industrial Equipment, Industrial Materials, Paper and Forest
Products, and Transportation may also compare its performance to that
of the Goldman Sachs Cyclical Industries Index, a market
capitalization-weighted index of 246 stocks designed to measure the
performance of companies in the cyclical industries sector. Issues in
the index include providers of consumer and commercial goods and
services where performance is influenced by the cyclicality of
economy, such as: manufacturers of automobiles and companies involved
with construction of residential and commercial properties, producers
of chemicals, electrical equipment and components, and providers of
environmental services.
Each of Brokerage and Investment Management, Financial Services, Home
Finance, Insurance, and Banking may also compare its performance to
that of the Goldman Sachs Financial Services Index, a market
capitalization-weighted index of 252 stocks designed to measure the
performance of companies in the financial services sector. Issues in
the index include financial institutions providing banking services,
brokerage firms and asset managers, insurance companies, and real
estate holding and development companies.
Each of Biotechnology, Health Care, Medical Delivery, and Medical
Equipment and Systems may also compare its performance to that of the
Goldman Sachs Health Care Index, a market capitalization-weighted
index of 97 stocks designed to measure the performance of companies in
the health care sector. Issues in the index include providers of
health care related services including long-term care and hospital
facilities, health care management organizations and continuing care
services.
Each of Energy, Energy Services, Gold, and Natural Resources may also
compare its performance to that of the Goldman Sachs Natural Resources
Index, a market capitalization-weighted index of 105 stocks designed
to measure the performance of companies in the natural resources
sector. Issues in the index include extractive industries including
gold & precious metals mining along with other mineral mining, energy
companies providing oil & gas services, and owners and operators of
timber tracts and forestry services.
Each of Technology, Business Services and Outsourcing, Computers,
Developing Communications, Electronics, and Software and Computer
Services may also compare its performance to that of the Goldman Sachs
Technology Index, a market capitalization-weighted index of 185 stocks
designed to measure the performance of companies in the technology
sector. Issues in the index include producers of sophisticated
devices, services and software related to the fields of computers,
electronics, networking and Internet services.
Each of Utilities Growth, Natural Gas, and Telecommunications may also
compare its performance to that of the Goldman Sachs Utilities Index,
a market capitalization-weighted index of 150 stocks designed to
measure the performance of companies in the utilities sector. Issues
in the index include generators and distributors of electricity,
distributors of natural gas and water, and providers of
telecommunications services.
A fund may be compared in advertising to Certificates of Deposit (CDs)
or other investments issued by banks or other depository institutions.
Mutual funds differ from bank investments in several respects. For
example, a fund may offer greater liquidity or higher potential
returns than CDs, a fund does not guarantee an investor's principal or
return, and fund shares are not FDIC insured.
Fidelity may provide information designed to help individuals
understand their investment goals and explore various financial
strategies. Such information may include information about current
economic, market, and political conditions; materials that describe
general principles of investing, such as asset allocation,
diversification, risk tolerance, and goal setting; questionnaires
designed to help create a personal financial profile; worksheets used
to project savings needs based on assumed rates of inflation and
hypothetical rates of return; and action plans offering investment
alternatives. Materials may also include discussions of Fidelity's
asset allocation funds and other Fidelity funds, products, and
services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides
historical returns of the capital markets in the United States,
including common stocks, small capitalization stocks, long-term
corporate bonds, intermediate-term government bonds, long-term
government bonds, Treasury bills, the U.S. rate of inflation (based on
the CPI), and combinations of various capital markets. The performance
of these capital markets is based on the returns of different indexes.
Fidelity funds may use the performance of these capital markets in
order to demonstrate general risk-versus-reward investment scenarios.
Performance comparisons may also include the value of a hypothetical
investment in any of these capital markets. The risks associated with
the security types in any capital market may or may not correspond
directly to those of the funds. Ibbotson calculates returns in the
same method as the funds. The funds may also compare performance to
that of other compilations or indexes that may be developed and made
available in the future.
The money market fund may compare its performance or the performance
of securities in which it may invest to averages published by IBC
Financial Data, Inc. of Ashland, Massachusetts. These averages assume
reinvestment of distributions. IBC's MONEY FUND REPORT
AVERAGES(trademark)/ALL TAXABLE, which is reported in IBC's MONEY FUND
REPORT(trademark), covers 969 taxable money market funds.
In advertising materials, Fidelity may reference or discuss its
products and services, which may include other Fidelity funds;
retirement investing; brokerage products and services; model
portfolios or allocations; saving for college or other goals; and
charitable giving. In addition, Fidelity may quote or reprint
financial or business publications and periodicals as they relate to
current economic and political conditions, fund management, portfolio
composition, investment philosophy, investment techniques, the
desirability of owning a particular mutual fund, and Fidelity services
and products. Fidelity may also reprint, and use as advertising and
sales literature, articles from Fidelity Focus(registered trademark),
a quarterly magazine provided free of charge to Fidelity fund
shareholders.
A fund may present its fund number, Quotron(trademark) number, and
CUSIP number, and discuss or quote its current portfolio manager.
VOLATILITY. A stock fund may quote various measures of volatility and
benchmark correlation in advertising. In addition, the fund may
compare these measures to those of other funds. Measures of volatility
seek to compare a fund's historical share price fluctuations or
returns to those of a benchmark. Measures of benchmark correlation
indicate how valid a comparative benchmark may be. All measures of
volatility and correlation are calculated using averages of historical
data.
MOMENTUM INDICATORS indicate price movements over specific periods of
time for a stock fund. Each point on the momentum indicator represents
a fund's percentage change in price movements over that period.
A stock fund may advertise examples of the effects of periodic
investment plans, including the principle of dollar cost averaging. In
such a program, an investor invests a fixed dollar amount in a fund at
periodic intervals, thereby purchasing fewer shares when prices are
high and more shares when prices are low. While such a strategy does
not assure a profit or guard against loss in a declining market, the
investor's average cost per share can be lower than if fixed numbers
of shares are purchased at the same intervals. In evaluating such a
plan, investors should consider their ability to continue purchasing
shares during periods of low price levels.
As of February 29, 2000, FMR advised over $35 billion in municipal
fund assets, $141 billion in taxable fixed-income fund assets, $148
billion in money market fund assets, $638 billion in equity fund
assets, $23 billion in international fund assets, and $42 billion in
Spartan fund assets. The funds may reference the growth and variety of
money market mutual funds and the adviser's innovation and
participation in the industry. The equity funds under management
figure represents the largest amount of equity fund assets under
management by a mutual fund investment adviser in the United States,
making FMR America's leading equity (stock) fund manager. FMR, its
subsidiaries, and affiliates maintain a worldwide information and
communications network for the purpose of researching and managing
investments abroad.
In addition to performance rankings, the money market fund may compare
its total expense ratio to the average total expense ratio of similar
funds tracked by Lipper. The fund's total expense ratio is a
significant factor in comparing bond and money market investments
because of its effect on yield.
ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION
Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to
waive each fund's front-end sales charge on shares acquired through
reinvestment of dividends and capital gain distributions or in
connection with a fund's merger with or acquisition of any investment
company or trust. In addition, FDC has chosen to waive each fund's
front-end sales charge in certain instances due to sales efficiencies
and competitive considerations. The sales charge will not apply:
1. to shares purchased in connection with an employee benefit plan
(including the Fidelity-sponsored 403(b) and corporate IRA programs
but otherwise as defined in the Employee Retirement Income Security
Act) maintained by a U.S. employer and having more than 200 eligible
employees, or a minimum of $3,000,000 in plan assets invested in
Fidelity mutual funds, or as part of an employee benefit plan
maintained by a U.S. employer that is a member of a parent-subsidiary
group of corporations (within the meaning of Section 1563(a)(1) of the
Internal Revenue Code, with "50%" substituted for "80%") any member of
which maintains an employee benefit plan having more than 200 eligible
employees, or a minimum of $3,000,000 in plan assets invested in
Fidelity mutual funds, or as part of an employee benefit plan
maintained by a non-U.S. employer having 200 or more eligible
employees, or a minimum of $3,000,000 in assets invested in Fidelity
mutual funds, the assets of which are held in a bona fide trust for
the exclusive benefit of employees participating therein;
2. to shares purchased by an insurance company separate account used
to fund annuity contracts purchased by employee benefit plans
(including 403(b) programs, but otherwise as defined in the Employee
Retirement Income Security Act), which, in the aggregate, have either
more than 200 eligible employees or a minimum of $3,000,000 in assets
invested in Fidelity funds;
3. to shares in a Fidelity account purchased (including purchases by
exchange) with the proceeds of a distribution from an employee benefit
plan provided that: (i) at the time of the distribution, the employer,
or an affiliate (as described in waiver (1) above) of such employer,
maintained at least one employee benefit plan that qualified for
waiver (1) above and that had at least some portion of its assets
invested in one or more mutual funds advised by FMR, or in one or more
investment accounts or pools advised by Fidelity Management Trust
Company; and (ii) either (a) the distribution is transferred from the
plan to a Fidelity IRA account within 60 days from the date of the
distribution or (b) the distribution is transferred directly from the
plan into another Fidelity account;
4. to shares purchased by a charitable organization (as defined for
purposes of Section 501(c)(3) of the Internal Revenue Code) investing
$100,000 or more;
5. to shares purchased for a charitable remainder trust or life income
pool established for the benefit of a charitable organization (as
defined for purposes of Section 501(c)(3) of the Internal Revenue
Code);
6. to shares purchased by an investor participating in the Fidelity
Trust Portfolios program (these investors must make initial
investments of $100,000 or more in the Trust Portfolios funds and
must, during the initial six-month period, reach and maintain an
aggregate balance of at least $500,000 in all accounts and subaccounts
purchased through the Trust Portfolios program);
7. to shares purchased by a mutual fund or a qualified state tuition
program for which FMR or an affiliate serves as investment manager;
8. to shares purchased through Portfolio Advisory Services SM or
Fidelity Charitable Advisory Services;
9. to shares purchased by a current or former Trustee or officer of a
Fidelity fund or a current or retired officer, director, or regular
employee of FMR Corp. or Fidelity International Limited (FIL) or their
direct or indirect subsidiaries (a Fidelity Trustee or employee), the
spouse of a Fidelity Trustee or employee, a Fidelity Trustee or
employee acting as custodian for a minor child, or a person acting as
trustee of a trust for the sole benefit of the minor child of a
Fidelity Trustee or employee; or
10. to shares purchased by a bank trust officer, registered
representative, or other employee of a qualified recipient. Qualified
recipients are securities dealers or other entities, including banks
and other financial institutions, who have sold the fund's shares
under special arrangements in connection with FDC's sales activities.
A fund's sales charge may be reduced to reflect sales charges
previously paid, or that would have been paid absent a reduction for
some purchases made directly with Fidelity as noted in the prospectus,
in connection with investments in other Fidelity funds. This includes
reductions for investments in the following prototype or
prototype-like retirement plans sponsored by FMR or FMR Corp.: The
Fidelity Traditional IRA, The Fidelity Roth IRA, The Fidelity Rollover
IRA, The Fidelity SEP-IRA and SARSEP, The Fidelity SIMPLE IRA, The
Fidelity Retirement Plan, Fidelity Defined Benefit Plan, The Fidelity
Group IRA, The Fidelity 403(b) Program, The Fidelity Investments
401(a) Prototype Plan for Tax-Exempt Employers, and The CORPORATEplan
for Retirement (Profit Sharing and Money Purchase Plan).
On October 12, 1990, the funds changed their sales charge policy from
a 2% sales charge upon purchase and a 1% deferred sales charge upon
redemption, to a 3% sales charge upon purchase. If you purchased
shares prior to that date, when you redeem those shares a trading fee
will be deducted and a deferred sales charge of 1% of this net
redemption amount will be deducted. The deferred sales charge does not
apply to exchanges between Select funds.
A fund may make redemption payments in whole or in part in readily
marketable securities or other property, valued for this purpose as
they are valued in computing each fund's NAV, if FMR determines it is
in the best interests of the fund. Shareholders that receive
securities or other property on redemption may realize a gain or loss
for tax purposes, and will incur any costs of sale, as well as the
associated inconveniences.
DISTRIBUTIONS AND TAXES
DIVIDENDS. A portion of each fund's income may qualify for the
dividends-received deduction available to corporate shareholders to
the extent that the fund's income is derived from qualifying
dividends. Because each fund may earn other types of income, such as
interest, short-term capital gains, and non-qualifying dividends, the
percentage of dividends from the fund that qualifies for the deduction
generally will be less than 100%. A portion of each fund's dividends
derived from certain U.S. Government securities and securities of
certain other investment companies may be exempt from state and local
taxation.
CAPITAL GAIN DISTRIBUTIONS. Each fund's long-term capital gain
distributions are federally taxable to shareholders generally as
capital gains. The money market fund may distribute any net realized
capital gains once a year or more often, as necessary.
As of February 29, 2000, Automotive had an aggregate capital loss
carryforward of approximately $7,479,000. This loss carryforward, of
which $1,009,000 and $6,470,000 will expire on February 28, 2007 and
February 29, 2008, respectively, is available to offset future capital
gains.
As of February 29, 2000, Energy Service had an aggregate capital loss
carryforward of approximately $162,650,000. This loss carryforward, of
which $85,150,000 and $77,500,000 will expire on February 28, 2007 and
February 29, 2008, respectively, is available to offset future capital
gains.
As of February 29, 2000, Environmental Services had an aggregate
capital loss carryforward of approximately $635,000. This loss
carryforward, all of which will expire on February 29, 2008, is
available to offset future capital gains.
As of February 29, 2000, Gold had an aggregate capital loss
carryforward of approximately $173,233,000. This loss carryforward, of
which $1,376,000, $91,543,000, $37,334,000, and $42,980,000 will
expire on February 28, 2001, 2006, 2007, and February 29, 2008,
respectively, is available to offset future capital gains.
Approximately $92,589,000, of which $1,376,000, $55,694,000,
$20,723,000, and $14,796,000 will expire on February 28, 2001, 2006,
2007 and February 29, 2008, respectively, was aquired in the merger
with Precious Metals and Minerals and is available to offset future
capital gains of the fund to the extent provided by regulations.
As of February 29, 2000, Industrial Materials had an aggregate capital
loss carryforward of approximately $2,206,000. This loss carryforward,
of which $840,000 and $1,366,000 will expire on February 28, 2007 and
February 29, 2008, respectively, is available to offset future capital
gains.
As of February 29, 2000, Medical Delivery had an aggregate capital
loss carryforward of approximately $38,668,000. This loss
carryforward, of which $10,988,000 and $27,680,000 will expire on
February 28, 2007 and February 29, 2008, respectively, is available to
offset future capital gains.
As of February 29, 2000, Paper and Forest Products had an aggregate
capital loss carryforward of approximately $1,444,000. This loss
carryforward, all of which will expire on February 28, 2007, is
available to offset future capital gains.
As of February 29, 2000, Money Market had an aggregate capital loss
carryforward of approximately $6,000. This loss carryforward, all of
which will expire on February 29, 2008, is available to offset future
capital gains.
RETURNS OF CAPITAL. If a fund's distributions exceed its taxable
income and capital gains realized during a taxable year, all or a
portion of the distributions made in the same taxable year may be
recharacterized as a return of capital to shareholders. A return of
capital distribution will generally not be taxable, but will reduce
each shareholder's cost basis in the fund and result in a higher
reported capital gain or lower reported capital loss when those shares
on which the distribution was received are sold.
FOREIGN TAX CREDIT OR DEDUCTION. Foreign governments may withhold
taxes on dividends and interest earned by a fund with respect to
foreign securities. Foreign governments may also impose taxes on other
payments or gains with respect to foreign securities. If, at the close
of its fiscal year, more than 50% of a fund's total assets is invested
in securities of foreign issuers, the fund may elect to pass through
eligible foreign taxes paid and thereby allow shareholders to take a
deduction or, if they meet certain holding period requirements with
respect to fund shares, a credit on their individual tax returns.
TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a
"regulated investment company" under Subchapter M of the Internal
Revenue Code so that it will not be liable for federal tax on income
and capital gains distributed to shareholders. In order to qualify as
a regulated investment company, and avoid being subject to federal
income or excise taxes at the fund level, each fund intends to
distribute substantially all of its net investment income and net
realized capital gains within each calendar year as well as on a
fiscal year basis, and intends to comply with other tax rules
applicable to regulated investment companies.
OTHER TAX INFORMATION. The information above is only a summary of some
of the tax consequences generally affecting each fund and its
shareholders, and no attempt has been made to discuss individual tax
consequences. It is up to you or your tax preparer to determine
whether the sale of shares of a fund resulted in a capital gain or
loss or other tax consequence to you. In addition to federal income
taxes, shareholders may be subject to state and local taxes on fund
distributions, and shares may be subject to state and local personal
property taxes. Investors should consult their tax advisers to
determine whether a fund is suitable to their particular tax
situation.
TRUSTEES AND OFFICERS
The Trustees, Members of the Advisory Board, and executive officers of
the trust and funds, as applicable, are listed below. The Board of
Trustees governs each fund and is responsible for protecting the
interests of shareholders. The Trustees are experienced executives who
meet periodically throughout the year to oversee each fund's
activities, review contractual arrangements with companies that
provide services to each fund, and review each fund's performance.
Except as indicated, each individual has held the office shown or
other offices in the same company for the last five years. All persons
named as Trustees and Members of the Advisory Board also serve in
similar capacities for other funds advised by FMR or its affiliates.
The business address of each Trustee, Member of the Advisory Board,
and officer who is an "interested person" (as defined in the 1940 Act)
is 82 Devonshire Street, Boston, Massachusetts 02109, which is also
the address of FMR. The business address of all the other Trustees is
Fidelity Investments, P.O. Box 9235, Boston, Massachusetts 02205-9235.
Those Trustees who are "interested persons" by virtue of their
affiliation with either the trust or FMR are indicated by an asterisk
(*).
*EDWARD C. JOHNSON 3d (69), Trustee, is President of the funds. Mr.
Johnson also serves as President of other Fidelity funds. He is Chief
Executive Officer, Chairman, and a Director of FMR Corp.; a Director
and Chairman of the Board and of the Executive Committee of FMR;
Chairman and a Director of Fidelity Management & Research (U.K.) Inc.
and of Fidelity Management & Research (Far East) Inc.; Chairman (1998)
and a Director (1997) of Fidelity Investments Money Management, Inc.;
Chairman and Representative Director of Fidelity Investments Japan
Limited (1997); and a Director of FDC and of FMR Co., Inc. (2000).
Abigail Johnson, Member of the Advisory Board of Fidelity Select
Portfolios, is Mr. Johnson's daughter.
ABIGAIL P. JOHNSON (38), Member of the Advisory Board of Fidelity
Select Portfolios (1999), is Vice President of certain Equity Funds
(1997), and is a Director of FMR Corp. (1994). Before assuming her
current responsibilities, Ms. Johnson managed a number of Fidelity
funds. Edward C. Johnson 3d, Trustee and President of the Funds, is
Ms. Johnson's father.
J. MICHAEL COOK (57), Member of the Advisory Board (2000). Prior to
Mr. Cook's retirement in May 1999, he served as Chairman and Chief
Executive Officer of Deloitte & Touche LLP, Chairman of the Deloitte &
Touche Foundation, and a member of the Board of Deloitte Touche
Tohmatsu. He currently serves as an Executive in Residence of the
Columbia Business School and as a Director of Dow Chemical Company
(2000), Columbia/HCA Healthcare Corporation (1999), and Children First
(1999). He is a member of the Executive Committee of the Securities
Regulation Institute, a member of the Advisory Board of Boardroom
Consultants, a Director of the National Forum for Health Care Quality,
Measurement and Reporting, past chairman and a member of the Board of
Catalyst (a leading organization for the advancement of women in
business), and is a Director of the STAR Foundation (Society to
Advance the Retarded and Handicapped). He also serves as a member of
the Board and Executive Committee and as Co-Chairman of the Audit and
Finance Committee of the Center for Strategic & International Studies,
a member of the Board of Overseers of the Columbia Business School,
and a Member of the Advisory Board of the Graduate School of Business
of the University of Florida.
RALPH F. COX (67), Trustee, is President of RABAR Enterprises
(management consulting-engineering industry, 1994). Prior to February
1994, he was President of Greenhill Petroleum Corporation (petroleum
exploration and production). Until March 1990, Mr. Cox was President
and Chief Operating Officer of Union Pacific Resources Company
(exploration and production). He is a Director of Waste Management
Inc. (non-hazardous waste, 1993), CH2M Hill Companies (engineering),
and Bonneville Pacific (independent power and petroleum production).
In addition, he is a member of advisory boards of Texas A&M University
and the University of Texas at Austin.
PHYLLIS BURKE DAVIS (68), Trustee. Mrs. Davis is retired from Avon
Products, Inc. where she held various positions including Senior Vice
President of Corporate Affairs and Group Vice President of U.S. sales,
distribution, and manufacturing. She is currently a Director of
BellSouth Corporation (telecommunications), Eaton Corporation
(manufacturing), and the TJX Companies, Inc. (retail stores), and
previously served as a Director of Hallmark Cards, Inc., Nabisco
Brands, Inc., and Standard Brands, Inc. In addition, she is a member
of the Board of Directors of the Southampton Hospital in Southampton,
N.Y. (1998).
ROBERT M. GATES (56), Trustee (1997), is a consultant, author, and
lecturer (1993). Mr. Gates was Director of the Central Intelligence
Agency (CIA) from 1991-1993. From 1989 to 1991, Mr. Gates served as
Assistant to the President of the United States and Deputy National
Security Advisor. Mr. Gates is a Director of Charles Stark Draper
Laboratory (non-profit), NACCO Industries, Inc. (mining and
manufacturing), and TRW Inc. (automotive, space, defense, and
information technology). Mr. Gates previously served as a Director of
LucasVarity PLC (automotive components and diesel engines). He is
currently serving as Dean of the George Bush School of Government and
Public Service at Texas A & M University (1999-2000). Mr. Gates also
is a Trustee of the Forum for International Policy and of the
Endowment Association of the College of William and Mary. In addition,
he is a member of the National Executive Board of the Boy Scouts of
America.
DONALD J. KIRK (67), Trustee, is Executive-in-Residence (1995) at
Columbia University Graduate School of Business. From 1987 to January
1995, Mr. Kirk was a Professor at Columbia University Graduate School
of Business. Prior to 1987, he was Chairman of the Financial
Accounting Standards Board. Mr. Kirk previously served as a Director
of General Re Corporation (reinsurance, 1987-1998) and as a Director
of Valuation Research Corp. (appraisals and valuations, 1993-1995). He
serves as Chairman of the Board of Directors of National Arts
Stabilization Inc., Chairman of the Board of Trustees of the Greenwich
Hospital Association, Director of the Yale-New Haven Health Services
Corp. (1998), Vice Chairman of the Public Oversight Board of the
American Institute of Certified Public Accountants' SEC Practice
Section (1995), and as a Public Governor of the National Association
of Securities Dealers, Inc. (1996).
NED C. LAUTENBACH (56), Trustee (2000), has been a partner of Clayton,
Dubilier & Rice, Inc. (private equity investment firm) since September
1998. Mr. Lautenbach was Senior Vice President of IBM Corporation from
1992 until his retirement in July 1998. From 1993 to 1995 he was
Chairman of IBM World Trade Corporation. He also was a member of IBM's
Corporate Executive Committee from 1994 to July 1998. He is a Director
of PPG Industries Inc. (glass, coating and chemical manufacturer),
Dynatech Corporation (global communications equipment), Eaton
Corporation (global manufacturer of highly engineered products) and
ChoicePoint Inc. (data identification, retrieval, storage, and
analysis).
*PETER S. LYNCH (57), Trustee, is Vice Chairman and a Director of FMR;
and a Director of FMR Co., Inc. (2000). Prior to May 31, 1990, he was
a Director of FMR and Executive Vice President of FMR (a position he
held until March 31, 1991); Vice President of Fidelity Magellan Fund
and FMR Growth Group Leader; and Managing Director of FMR Corp. Mr.
Lynch was also Vice President of Fidelity Investments Corporate
Services (1991-1992). In addition, he serves as a Trustee of Boston
College, Massachusetts Eye & Ear Infirmary, Historic Deerfield (1989)
and Society for the Preservation of New England Antiquities, and as an
Overseer of the Museum of Fine Arts of Boston.
WILLIAM O. McCOY (66), Trustee (1997), is the Interim Chancellor for
the University of North Carolina at Chapel Hill. Previously he had
served from 1995 through 1998 as Vice President of Finance for the
University of North Carolina (16-school system). Prior to his
retirement in December 1994, Mr. McCoy was Vice Chairman of the Board
of BellSouth Corporation (telecommunications, 1984) and President of
BellSouth Enterprises (1986). He is currently a Director of Liberty
Corporation (holding company, 1984), Duke-Weeks Realty Corporation
(real estate, 1994), Carolina Power and Light Company (electric
utility, 1996), the Kenan Transport Company (trucking, 1996), and
Dynatech Corporation (electronics, 1999). Previously, he was a
Director of First American Corporation (bank holding company,
1979-1996). In addition, Mr. McCoy served as a member of the Board of
Visitors for the University of North Carolina at Chapel Hill
(1994-1998) and currently serves on the Board of Visitors of the
Kenan-Flager Business School (University of North Carolina at Chapel
Hill, 1988).
GERALD C. McDONOUGH (71), Trustee and Chairman of the non-interested
Trustees, is Chairman of G.M. Management Group (strategic advisory
services). Mr. McDonough is a Director and Chairman of the Board of
York International Corp. (air conditioning and refrigeration),
Commercial Intertech Corp. (hydraulic systems, building systems, and
metal products, 1992), CUNO, Inc. (liquid and gas filtration products,
1996), and Associated Estates Realty Corporation (a real estate
investment trust, 1993). Mr. McDonough served as a Director of
ACME-Cleveland Corp. (metal working, telecommunications, and
electronic products) from 1987-1996 and Brush-Wellman Inc. (metal
refining) from 1983-1997.
MARVIN L. MANN (67), Trustee (1993), is Chairman Emeritus of Lexmark
International, Inc. (office machines, 1991) where he still remains a
member of the Board. Prior to 1991, he held the positions of Vice
President of International Business Machines Corporation ("IBM") and
President and General Manager of various IBM divisions and
subsidiaries. Mr. Mann is a Director of M.A. Hanna Company (chemicals,
1993), Imation Corp. (imaging and information storage, 1997). He is a
Board member of Dynatech Corporation (electronics, 1999).
*ROBERT C. POZEN (53), Trustee (1997), is Senior Vice President of the
funds (1997). Mr. Pozen also serves as Senior Vice President of other
Fidelity funds (1997). He is President and a Director of FMR (1997),
Fidelity Management & Research (U.K.) Inc. (1997), Fidelity Management
& Research (Far East) Inc. (1997), Fidelity Investments Money
Management, Inc. (1998), and FMR Co., Inc. (2000); and a Director of
Strategic Advisers, Inc. (1999). Previously, Mr. Pozen served as
General Counsel, Managing Director, and Senior Vice President of FMR
Corp.
THOMAS R. WILLIAMS (71), Trustee, is President of The Wales Group,
Inc. (management and financial advisory services). Prior to retiring
in 1987, Mr. Williams served as Chairman of the Board of First
Wachovia Corporation (bank holding company), and Chairman and Chief
Executive Officer of The First National Bank of Atlanta and First
Atlanta Corporation (bank holding company). He is currently a Director
of National Life Insurance Company of Vermont and American Software,
Inc. Mr. Williams was previously a Director of ConAgra, Inc.
(agricultural products), Georgia Power Company (electric utility), and
Avado, Inc. (restaurants).
BOYCE I. GREER (44), is Vice President of Select Money Market
Portfolio (1997). He serves as Vice President of Money Market Funds
(1997), Group Leader of the Money Market Group (1997), Senior Vice
President of FMR (1997), and Vice President of FIMM (1998). Mr. Greer
served as the Leader of the Fixed-Income Group for Fidelity Management
Trust Company (1993-1995) and was Vice President and Group Leader of
Municipal Fixed-Income Investments (1996-1997).
JOHN T. TODD (51), is Vice President of Select Money Market Portfolio
(1996) and other funds advised by FMR. Prior to his current
responsibilities, Mr. Todd managed a variety of Fidelity funds.
ERIC D. ROITER (51), is Secretary of the funds (1998). He also serves
as Secretary of other Fidelity funds (1998); Vice President, General
Counsel, and Clerk of FMR (1998); and Vice President and Clerk of FDC
(1998). Prior to joining Fidelity, Mr. Roiter was with the law firm of
Debevoise & Plimpton, as an associate (1981-1984) and as a partner
(1985-1997), and served as an Assistant General Counsel of the U.S.
Securities and Exchange Commission (1979-1981). Mr. Roiter was an
Adjunct Member, Faculty of Law, at Columbia University Law School
(1996-1997).
ROBERT A. DWIGHT (41), is Treasurer of the funds (2000). Mr. Dwight
also serves as Treasurer of other Fidelity funds (2000) and is an
employee of FMR. Prior to becoming Treasurer of the Fidelity funds, he
served as President of Fidelity Accounting and Custody Services
(FACS). Before joining Fidelity, Mr. Dwight was Senior Vice President
of fund accounting operations for The Boston Company.
MARIA F. DWYER (41), is Deputy Treasurer of the funds (2000). She also
serves as Deputy Treasurer of other Fidelity funds (2000) and is a
Vice President (1999) and an employee (1996) of FMR. Prior to joining
Fidelity, Ms. Dwyer served as Director of Compliance for MFS
Investment Management.
MATTHEW N. KARSTETTER (38), is Deputy Treasurer of the funds (1998).
He also serves as Deputy Treasurer of other Fidelity funds (1998) and
is an employee of FMR (1998). Before joining FMR, Mr. Karstetter
served as Vice President of Investment Accounting and Treasurer of IDS
Mutual Funds at American Express Financial Advisors (1996-1998). Prior
to 1996, Mr. Karstetter was Vice President, Mutual Fund Services at
State Street Bank & Trust (1991-1996).
STANLEY N. GRIFFITH (53), is Assistant Vice President of Select Money
Market Portfolio (1998). Mr Griffith is Assistant Vice President of
Fidelity's Fixed-Income Funds (1998) and an employee of FMR Corp.
JOHN H. COSTELLO (53), is Assistant Treasurer of the funds. Mr.
Costello also serves as Assistant Treasurer of other Fidelity funds
and is an employee of FMR.
THOMAS J. SIMPSON (41), is Assistant Treasurer of Select Money Market
Portfolio (1996). Mr. Simpson is Assistant Treasurer of Fidelity's
Fixed-Income Funds (1998) and an employee of FMR (1996). Prior to
joining FMR, Mr. Simpson was Vice President and Fund Controller of
Liberty Investment Services (1987-1995).
The following table sets forth information describing the compensation
of each Trustee and Member of the Advisory Board of each fund for his
or her services for the fiscal year ended February 29, 2000, or
calendar year ended December 31, 1999, as applicable.
COMPENSATION TABLE
<TABLE>
<CAPTION>
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** J. Michael Cook ***** Ralph F. Cox
FUNDA
<S> <C> <C> <C> <C>
Air TransportationB $ 0 $ 0 $ 0 $ 16
AutomotiveB $ 0 $ 0 $ 0 $ 8
BankingB $ 0 $ 0 $ 0 $ 209
BiotechnologyB $ 0 $ 0 $ 0 $ 299
Brokerage and Investment $ 0 $ 0 $ 0 $ 135
ManagementB
Business Services and $ 0 $ 0 $ 0 $ 18
OutsourcingB
ChemicalsB $ 0 $ 0 $ 0 $ 11
ComputersB $ 0 $ 0 $ 0 $ 642
Construction and HousingB $ 0 $ 0 $ 0 $ 6
Consumer IndustriesB $ 0 $ 0 $ 0 $ 21
Cyclical IndustriesB $ 0 $ 0 $ 0 $ 2
Defense and AerospaceB $ 0 $ 0 $ 0 $ 10
Developing CommunicationsB $ 0 $ 0 $ 0 $ 348
ElectronicsB $ 0 $ 0 $ 0 $ 1,191
EnergyB $ 0 $ 0 $ 0 $ 57
Energy ServiceB $ 0 $ 0 $ 0 $ 186
Environmental ServicesB $ 0 $ 0 $ 0 $ 4
Financial ServicesB $ 0 $ 0 $ 0 $ 148
Food and AgricultureB $ 0 $ 0 $ 0 $ 45
GoldB $ 0 $ 0 $ 0 $ 54
Health Care B, C, D $ 0 $ 0 $ 0 $ 800
Home FinanceB $ 0 $ 0 $ 0 $ 154
Industrial EquipmentB $ 0 $ 0 $ 0 $ 10
Industrial MaterialsB $ 0 $ 0 $ 0 $ 6
InsuranceB $ 0 $ 0 $ 0 $ 19
LeisureB $ 0 $ 0 $ 0 $ 113
Medical DeliveryB $ 0 $ 0 $ 0 $ 19
Medical Equipment and SystemsB $ 0 $ 0 $ 0 $ 10
MultimediaB $ 0 $ 0 $ 0 $ 57
Natural GasB $ 0 $ 0 $ 0 $ 16
Natural ResourcesB $ 0 $ 0 $ 0 $ 5
Paper and Forest ProductsB $ 0 $ 0 $ 0 $ 6
RetailingB $ 0 $ 0 $ 0 $ 57
Software and Computer ServicesB $ 0 $ 0 $ 0 $ 234
TechnologyB $ 0 $ 0 $ 0 $ 715
TelecommunicationsB $ 0 $ 0 $ 0 $ 309
TransportationB $ 0 $ 0 $ 0 $ 6
Utilities GrowthB $ 0 $ 0 $ 0 $ 165
Money MarketB $ 0 $ 0 $ 0 $ 297
TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 0 $ 217,500
FUND COMPLEX*, A
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE COMPENSATION FROM A Phyllis Burke Davis Robert M. Gates E. Bradley Jones **** Donald J. Kirk
FUNDA
<S> <C> <C> <C> <C>
Air TransportationB $ 16 $ 16 $ 15 $ 17
AutomotiveB $ 8 $ 8 $ 7 $ 8
BankingB $ 201 $ 208 $ 184 $ 211
BiotechnologyB $ 294 $ 296 $ 212 $ 304
Brokerage and Investment $ 131 $ 135 $ 113 $ 137
ManagementB
Business Services and $ 18 $ 18 $ 15 $ 18
OutsourcingB
ChemicalsB $ 11 $ 11 $ 9 $ 11
ComputersB $ 627 $ 637 $ 490 $ 652
Construction and HousingB $ 6 $ 6 $ 6 $ 6
Consumer IndustriesB $ 21 $ 21 $ 18 $ 22
Cyclical IndustriesB $ 2 $ 2 $ 2 $ 2
Defense and AerospaceB $ 10 $ 10 $ 9 $ 10
Developing CommunicationsB $ 341 $ 344 $ 242 $ 354
ElectronicsB $ 1,172 $ 1,179 $ 863 $ 1,211
EnergyB $ 55 $ 56 $ 47 $ 57
Energy ServiceB $ 181 $ 185 $ 157 $ 189
Environmental ServicesB $ 4 $ 4 $ 4 $ 4
Financial ServicesB $ 143 $ 147 $ 127 $ 150
Food and AgricultureB $ 44 $ 45 $ 40 $ 46
GoldB $ 52 $ 53 $ 44 $ 54
Health Care B, C, D $ 775 $ 796 $ 678 $ 810
Home FinanceB $ 148 $ 153 $ 137 $ 155
Industrial EquipmentB $ 10 $ 10 $ 9 $ 10
Industrial MaterialsB $ 6 $ 6 $ 5 $ 6
InsuranceB $ 18 $ 19 $ 17 $ 19
LeisureB $ 109 $ 112 $ 94 $ 114
Medical DeliveryB $ 18 $ 18 $ 16 $ 19
Medical Equipment and SystemsB $ 10 $ 10 $ 8 $ 11
MultimediaB $ 55 $ 56 $ 45 $ 58
Natural GasB $ 16 $ 16 $ 13 $ 16
Natural ResourcesB $ 4 $ 4 $ 4 $ 5
Paper and Forest ProductsB $ 6 $ 6 $ 5 $ 6
RetailingB $ 55 $ 57 $ 51 $ 58
Software and Computer ServicesB $ 229 $ 232 $ 170 $ 238
TechnologyB $ 705 $ 706 $ 472 $ 728
TelecommunicationsB $ 302 $ 306 $ 232 $ 314
TransportationB $ 6 $ 6 $ 5 $ 6
Utilities GrowthB $ 161 $ 164 $ 134 $ 167
Money MarketB $ 289 $ 295 $ 248 $ 301
TOTAL COMPENSATION FROM THE $ 211,500 $ 217,500 $ 217,500 $ 217,500
FUND COMPLEX*, A
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE COMPENSATION FROM
A Ned C. Lautenbach *** Peter S. Lynch ** William O. McCoy Gerald C. McDonough Marvin L. Mann
FUNDA
<S> <C> <C> <C> <C> <C>
Air TransportationB $ 5 $ 0 $ 16 $ 20 $ 17
AutomotiveB $ 2 $ 0 $ 8 $ 10 $ 8
BankingB $ 68 $ 0 $ 207 $ 259 $ 210
BiotechnologyB $ 162 $ 0 $ 295 $ 373 $ 302
Brokerage and Investment $ 50 $ 0 $ 134 $ 168 $ 136
ManagementB
Business Services and $ 8 $ 0 $ 18 $ 23 $ 18
OutsourcingB
ChemicalsB $ 4 $ 0 $ 11 $ 14 $ 11
ComputersB $ 307 $ 0 $ 633 $ 800 $ 647
Construction and HousingB $ 1 $ 0 $ 6 $ 8 $ 6
Consumer IndustriesB $ 8 $ 0 $ 21 $ 26 $ 21
Cyclical IndustriesB $ 1 $ 0 $ 2 $ 2 $ 2
Defense and AerospaceB $ 3 $ 0 $ 10 $ 12 $ 10
Developing CommunicationsB $ 185 $ 0 $ 344 $ 435 $ 352
ElectronicsB $ 638 $ 0 $ 1,174 $ 1,486 $ 1,202
EnergyB $ 24 $ 0 $ 56 $ 71 $ 57
Energy ServiceB $ 75 $ 0 $ 184 $ 232 $ 187
Environmental ServicesB $ 1 $ 0 $ 4 $ 6 $ 4
Financial ServicesB $ 53 $ 0 $ 146 $ 184 $ 149
Food and AgricultureB $ 15 $ 0 $ 45 $ 56 $ 45
GoldB $ 23 $ 0 $ 53 $ 67 $ 54
Health Care B, C, D $ 301 $ 0 $ 790 $ 995 $ 805
Home FinanceB $ 46 $ 0 $ 152 $ 190 $ 154
Industrial EquipmentB $ 4 $ 0 $ 10 $ 12 $ 10
Industrial MaterialsB $ 2 $ 0 $ 6 $ 8 $ 6
InsuranceB $ 6 $ 0 $ 19 $ 24 $ 19
LeisureB $ 43 $ 0 $ 111 $ 140 $ 113
Medical DeliveryB $ 6 $ 0 $ 18 $ 23 $ 19
Medical Equipment and
SystemsB $ 5 $ 0 $ 10 $ 13 $ 11
MultimediaB $ 25 $ 0 $ 56 $ 71 $ 57
Natural GasB $ 7 $ 0 $ 16 $ 20 $ 16
Natural ResourcesB $ 2 $ 0 $ 4 $ 6 $ 5
Paper and Forest ProductsB $ 2 $ 0 $ 6 $ 7 $ 6
RetailingB $ 15 $ 0 $ 57 $ 71 $ 58
Software and Computer
ServicesB $ 118 $ 0 $ 231 $ 292 $ 236
TechnologyB $ 420 $ 0 $ 705 $ 894 $ 723
TelecommunicationsB $ 148 $ 0 $ 305 $ 385 $ 312
TransportationB $ 2 $ 0 $ 6 $ 7 $ 6
Utilities GrowthB $ 70 $ 0 $ 163 $ 206 $ 166
Money MarketB $ 124 $ 0 $ 292 $ 369 $ 299
TOTAL COMPENSATION FROM
THE $ 54,000 $ 0 $ 214,500 $ 269,000 $ 217,500
FUND COMPLEX*, A
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE COMPENSATION FROM A Robert C. Pozen** Thomas R. Williams
FUNDA
<S> <C> <C>
Air TransportationB $ 0 $ 16
AutomotiveB $ 0 $ 8
BankingB $ 0 $ 204
BiotechnologyB $ 0 $ 295
Brokerage and Investment $ 0 $ 132
ManagementB
Business Services and $ 0 $ 18
OutsourcingB
ChemicalsB $ 0 $ 11
ComputersB $ 0 $ 631
Construction and HousingB $ 0 $ 6
Consumer IndustriesB $ 0 $ 21
Cyclical IndustriesB $ 0 $ 2
Defense and AerospaceB $ 0 $ 10
Developing CommunicationsB $ 0 $ 342
ElectronicsB $ 0 $ 1,174
EnergyB $ 0 $ 55
Energy ServiceB $ 0 $ 182
Environmental ServicesB $ 0 $ 4
Financial ServicesB $ 0 $ 145
Food and AgricultureB $ 0 $ 44
GoldB $ 0 $ 53
Health Care B, C, D $ 0 $ 783
Home FinanceB $ 0 $ 150
Industrial EquipmentB $ 0 $ 10
Industrial MaterialsB $ 0 $ 6
InsuranceB $ 0 $ 19
LeisureB $ 0 $ 110
Medical DeliveryB $ 0 $ 18
Medical Equipment and SystemsB $ 0 $ 10
MultimediaB $ 0 $ 56
Natural GasB $ 0 $ 16
Natural ResourcesB $ 0 $ 4
Paper and Forest ProductsB $ 0 $ 6
RetailingB $ 0 $ 56
Software and Computer ServicesB $ 0 $ 230
TechnologyB $ 0 $ 705
TelecommunicationsB $ 0 $ 303
TransportationB $ 0 $ 6
Utilities GrowthB $ 0 $ 162
Money MarketB $ 0 $ 291
TOTAL COMPENSATION FROM THE $ 0 $ 213,000
FUND COMPLEX*, A
</TABLE>
* Information is for the calendar year ended December 31, 1999 for 236
funds in the complex.
** Interested Trustees of the funds and Ms. Johnson are compensated by
FMR.
*** During the period from October 14, 1999 through December 31, 1999,
Mr. Lautenbach served as a Member of the Advisory Board. Effective
January 1, 2000, Mr. Lautenbach serves as a Member of the Board of
Trustees.
**** Mr. Jones served on the Board of Trustees through December 31,
1999.
***** Effective March 16, 2000, Mr. Cook serves as a Member of the
Advisory Board.
A Compensation figures include cash, amounts required to be deferred,
and may include amounts deferred at the election of Trustees. For the
calendar year ended December 31, 1999, the Trustees accrued required
deferred compensation from the funds as follows: Ralph F. Cox,
$75,000; Phyllis Burke Davis, $75,000; Robert M. Gates, $75,000; E.
Bradley Jones, $75,000; Donald J. Kirk, $75,000; William O. McCoy,
$75,000; Gerald C. McDonough, $87,500; Marvin L. Mann, $75,000; and
Thomas R. Williams, $75,000. Certain of the non-interested Trustees
elected voluntarily to defer a portion of their compensation as
follows: Ralph F. Cox, $53,735; William O. McCoy, $53,735; and Thomas
R. Williams, $62,319.
B Compensation figures include cash, and may include amounts required
to be deferred and amounts deferred at the election of Trustees.
C The following amounts are required to be deferred by each
non-interested Trustee: Ralph F. Cox, $390; Phyllis Burke Davis, $390;
Robert M. Gates, $390; E. Bradley Jones, $317; Donald J. Kirk, $390;
Ned C. Lautenbach, $73; William O. McCoy, $390; Gerald C. McDonough,
$463; Marvin L. Mann, $390; and Thomas R. Williams, $390.
D Certain of the non-interested Trustees' aggregate compensation from
a fund includes accrued voluntary deferred compensation as follows:
Ralph F. Cox, $296, Health Care; Ned C. Lautenbach, $33, Health Care;
William O. McCoy, $296, Health Care; and Thomas R. Williams, $296,
Health Care.
Under a deferred compensation plan adopted in September 1995 and
amended in November 1996 and January 2000 (the Plan), non-interested
Trustees must defer receipt of a portion of, and may elect to defer
receipt of an additional portion of, their annual fees. Amounts
deferred under the Plan are treated as though equivalent dollar
amounts had been invested in shares of a cross-section of Fidelity
funds including funds in each major investment discipline and
representing a majority of Fidelity's assets under management (the
Reference Funds). The amounts ultimately received by the Trustees
under the Plan will be directly linked to the investment performance
of the Reference Funds. Deferral of fees in accordance with the Plan
will have a negligible effect on a fund's assets, liabilities, and net
income per share, and will not obligate a fund to retain the services
of any Trustee or to pay any particular level of compensation to the
Trustee. A fund may invest in the Reference Funds under the Plan
without shareholder approval.
As of February 29, 2000, approximately 29.48% of Cyclical Industries',
approximately 39.24% of Natural Resources', and approximately 1.03% of
Technology's total outstanding shares were held by FMR affiliates. FMR
Corp. is the ultimate parent company of these FMR affiliates. By
virtue of their ownership interest in FMR Corp., as described in the
"Control of Investment Advisers" section on page 92, Mr. Edward C.
Johnson 3d, President and Trustee of the fund, and Ms. Abigail P.
Johnson, Member of the Advisory Board of the fund, may be deemed to be
a beneficial owner of these shares. As of the above date, with the
exception of Mr. Johnson 3d's and Ms. Johnson's deemed ownership of
Cyclical Industries', Natural Resources', and Technology's shares, the
Trustees, Member of the Advisory Board, and officers of the funds
owned, in the aggregate, less than 1% of each fund's total outstanding
shares.
As of February 29, 2000, the following owned of record or beneficially
5% or more (up to and including 25%) of each fund's outstanding
shares:
Construction and Housing: Simon Malishkevich, New York, NY (6.14%).
Cyclical Industries: James J. Hoffman, White Plains, NY (5.09%); FMR
Capital, Boston, MA (29.48%).
Energy: Boston College, Chestnut Hill, MA (5.57%).
Multimedia: Viacom Inc., New York, NY (10.65%).
Natural Resources: Fidelity Strategic Advisors, Boston, MA (34.97%).
A shareholder owning of record or beneficially more than 25% of a
fund's outstanding shares may be considered a controlling person. That
shareholder's vote could have a more significant effect on matters
presented at a shareholders' meeting than votes of other shareholders.
CONTROL OF INVESTMENT ADVISERS
FMR Corp., organized in 1972, is the ultimate parent company of FMR,
Fidelity Investments Money Management, Inc. (FIMM), Fidelity
Management & Research (U.K.) Inc. (FMR U.K.), Fidelity Management &
Research (Far East) Inc. (FMR Far East) and FMR Co., Inc. (FMRC). The
voting common stock of FMR Corp. is divided into two classes. Class B
is held predominantly by members of the Edward C. Johnson 3d family
and is entitled to 49% of the vote on any matter acted upon by the
voting common stock. Class A is held predominantly by non-Johnson
family member employees of FMR Corp. and its affiliates and is
entitled to 51% of the vote on any such matter. The Johnson family
group and all other Class B shareholders have entered into a
shareholders' voting agreement under which all Class B shares will be
voted in accordance with the majority vote of Class B shares. Under
the 1940 Act, control of a company is presumed where one individual or
group of individuals owns more than 25% of the voting stock of that
company. Therefore, through their ownership of voting common stock and
the execution of the shareholders' voting agreement, members of the
Johnson family may be deemed, under the 1940 Act, to form a
controlling group with respect to FMR Corp.
At present, the principal operating activities of FMR Corp. are those
conducted by its division, Fidelity Investments Retail Marketing
Company, which provides marketing services to various companies within
the Fidelity organization.
Fidelity International Limited (FIL), a Bermuda company formed in
1968, is the ultimate parent company of Fidelity Investments Japan
Limited (FIJ). Edward C. Johnson 3d, Johnson family members, and
various trusts for the benefit of the Johnson family own, directly or
indirectly, more than 25% of the voting common stock of FIL. FIL
provides investment advisory services to non-U.S. investment companies
and institutional investors investing in securities throughout the
world.
The funds, FMR, FIMM, FMRC, FMR U.K., FMR Far East, FIJ, and FDC have
adopted a code of ethics under Rule 17j-1 of the 1940 Act that sets
forth employees' fiduciary responsibilities regarding the funds,
establishes procedures for personal investing, and restricts certain
transactions. Employees subject to the code of ethics, including
Fidelity investment personnel, may invest in securities for their own
investment accounts, including securities that may be purchased or
held by the funds.
MANAGEMENT CONTRACTS
Each fund has entered into a management contract with FMR, pursuant to
which FMR furnishes investment advisory and other services.
MANAGEMENT SERVICES. Under the terms of its management contract with
each fund, FMR acts as investment adviser and, subject to the
supervision of the Board of Trustees, directs the investments of the
fund in accordance with its investment objective, policies and
limitations. FMR also provides each fund with all necessary office
facilities and personnel for servicing the fund's investments,
compensates all officers of each fund and all Trustees who are
"interested persons" of the trust or of FMR, and all personnel of each
fund or FMR performing services relating to research, statistical and
investment activities.
In addition, FMR or its affiliates, subject to the supervision of the
Board of Trustees, provide the management and administrative services
necessary for the operation of each fund. These services include
providing facilities for maintaining each fund's organization;
supervising relations with custodians, transfer and pricing agents,
accountants, underwriters and other persons dealing with each fund;
preparing all general shareholder communications and conducting
shareholder relations; maintaining each fund's records and the
registration of each fund's shares under federal securities laws and
making necessary filings under state securities laws; developing
management and shareholder services for each fund; and furnishing
reports, evaluations and analyses on a variety of subjects to the
Trustees.
MANAGEMENT-RELATED EXPENSES. In addition to the management fee payable
to FMR and the fees payable to the transfer, dividend disbursing, and
shareholder servicing agent, pricing and bookkeeping agent, and the
costs associated with securities lending, as applicable, each fund
pays all of its expenses that are not assumed by those parties. Each
fund pays for the typesetting, printing, and mailing of its proxy
materials to shareholders, legal expenses, and the fees of the
custodian, auditor, and non-interested Trustees. Each fund's
management contract further provides that the fund will pay for
typesetting, printing, and mailing prospectuses, statements of
additional information, notices, and reports to shareholders; however,
under the terms of each fund's transfer agent agreement, the transfer
agent bears the costs of providing these services to existing
shareholders. Other expenses paid by each fund include interest,
taxes, brokerage commissions, the fund's proportionate share of
insurance premiums and Investment Company Institute dues, and the
costs of registering shares under federal securities laws and making
necessary filings under state securities laws. Each fund is also
liable for such non-recurring expenses as may arise, including costs
of any litigation to which the fund may be a party, and any obligation
it may have to indemnify its officers and Trustees with respect to
litigation.
MANAGEMENT FEES. For the services of FMR under the management
contract, each stock fund pays FMR a monthly management fee which has
two components: a group fee rate and an individual fund fee rate.
For the services of FMR under the management contract, the money
market fund pays FMR a monthly management fee which has three
components: a group fee rate, an individual fund fee rate, and an
income-based component of 6% of the fund's monthly gross income in
excess of an annualized 5% yield. For this purpose, gross income
includes interest accrued and/or discount earned (including both
original issue discount and market discount) on portfolio obligations,
less amortization of premium on portfolio obligations. The maximum
income-based component is an amount equal to an annual rate of 0.24%
of the fund's average net assets throughout the month.
The group fee rate is based on the monthly average net assets of all
of the registered investment companies with which FMR has management
contracts.
The following is the fee schedule for the money market fund.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
MONEY MARKET FUND
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate
0 - $3 billion .3700% $ 1 billion .3700%
3 - 6 .3400 50 .2188
6 - 9 .3100 100 .1869
9 - 12 .2800 150 .1736
12 - 15 .2500 200 .1652
15 - 18 .2200 250 .1587
18 - 21 .2000 300 .1536
21 - 24 .1900 350 .1494
24 - 30 .1800 400 .1459
30 - 36 .1750 450 .1427
36 - 42 .1700 500 .1399
42 - 48 .1650 550 .1372
48 - 66 .1600 600 .1349
66 - 84 .1550 650 .1328
84 - 120 .1500 700 .1309
120 - 156 .1450 750 .1291
156 - 192 .1400 800 .1275
192 - 228 .1350 850 .1260
228 - 264 .1300 900 .1246
264 - 300 .1275 950 .1233
300 - 336 .1250 1,000 .1220
336 - 372 .1225 1,050 .1209
372 - 408 .1200 1,100 .1197
408 - 444 .1175 1,150 .1187
444 - 480 .1150 1,200 .1177
480 - 516 .1125 1,250 .1167
516 - 587 .1100 1,300 .1158
587 - 646 .1080 1,350 .1149
646 - 711 .1060 1,400 .1141
711 - 782 .1040
782 - 860 .1020
860 - 946 .1000
946 - 1,041 .0980
1,041 - 1,145 .0960
1,145 - 1,260 .0940
Over 1,260 .0920
</TABLE>
The group fee rate is calculated on a cumulative basis pursuant to the
graduated fee rate schedule shown above on the left. The schedule
above on the right shows the effective annual group fee rate at
various asset levels, which is the result of cumulatively applying the
annualized rates on the left. For example, the effective annual fee
rate at $852 billion of group net assets - the approximate level for
February 2000 - was 0.1260%, which is the weighted average of the
respective fee rates for each level of group net assets up to $852
billion.
The following is the fee schedule for the stock funds.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
STOCK FUNDS
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate
0 - $3 billion .5200% $ 1 billion .5200%
3 - 6 .4900 50 .3823
6 - 9 .4600 100 .3512
9 - 12 .4300 150 .3371
12 - 15 .4000 200 .3284
15 - 18 .3850 250 .3219
18 - 21 .3700 300 .3163
21 - 24 .3600 350 .3113
24 - 30 .3500 400 .3067
30 - 36 .3450 450 .3024
36 - 42 .3400 500 .2982
42 - 48 .3350 550 .2942
48 - 66 .3250 600 .2904
66 - 84 .3200 650 .2870
84 - 102 .3150 700 .2838
102 - 138 .3100 750 .2809
138 - 174 .3050 800 .2782
174 - 210 .3000 850 .2756
210 - 246 .2950 900 .2732
246 - 282 .2900 950 .2710
282 - 318 .2850 1,000 .2689
318 - 354 .2800 1,050 .2669
354 - 390 .2750 1,100 .2649
390 - 426 .2700 1,150 .2631
426 - 462 .2650 1,200 .2614
462 - 498 .2600 1,250 .2597
498 - 534 .2550 1,300 .2581
534 - 587 .2500 1,350 .2566
587 - 646 .2463 1,400 .2551
646 - 711 .2426
711 - 782 .2389
782 - 860 .2352
860 - 946 .2315
946 - 1,041 .2278
1,041 - 1,145 .2241
1,145 - 1,260 .2204
Over 1,260 .2167
</TABLE>
The group fee rate is calculated on a cumulative basis pursuant to the
graduated fee rate schedule shown above on the left. The schedule
above on the right shows the effective annual group fee rate at
various asset levels, which is the result of cumulatively applying the
annualized rates on the left. For example, the effective annual fee
rate at $852 billion of group net assets - the approximate level for
February 2000 - was 0.2755%, which is the weighted average of the
respective fee rates for each level of group net assets up to $852
billion.
Each stock fund's individual fund fee rate is 0.30%. Based on the
average group net assets of the funds advised by FMR for February
2000, each stock fund's annual management fee rate would be calculated
as follows:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Group Fee Rate Individual Fund Fee Rate Management Fee Rate
Stock Funds 0.2755% + 0.30% = 0.5755%
</TABLE>
One-twelfth of the management fee rate is applied to each stock fund's
average net assets for the month, giving a dollar amount which is the
fee for that month.
The money market fund's individual fund fee rate is 0.03%. One-twelfth
of the sum of the group fee rate and the individual fund fee rate is
applied to the fund's average net assets for the month, giving a
dollar amount which is the fee for that month to which the
income-based component is added.
The following table shows the amount of management fees paid by each
fund to FMR for the past three fiscal years.
<TABLE>
<CAPTION>
Fund Fiscal Years Ended February 28 Management Fees Paid to FMR
<S> <C> <C>
Air Transportation 2000(dagger) $ 322,853
1999 $ 573,138
1998 $ 378,349
Automotive 2000(dagger) $ 132,781
1999 $ 357,296
1998 $ 369,375
Banking 2000(dagger) $ 4,050,752
1999 $ 7,314,180
1998 $ 6,188,500
Biotechnology 2000(dagger) $ 7,618,538
1999 $ 3,390,377
1998 $ 3,442,469
Brokerage and Investment 2000(dagger) $ 2,764,553
Management
1999 $ 4,267,725
1998 $ 2,493,991
Business Services and 2000(dagger) $ 373,270
Outsourcing
1999 $ 326,653
1998* $ 2,948
Chemicals 2000(dagger) $ 224,179
1999 $ 276,652
1998 $ 496,851
Computers 2000(dagger) $ 13,963,837
1999 $ 6,013,190
1998 $ 3,921,116
Construction and Housing 2000(dagger) $ 94,274
1999 $ 490,439
1998 $ 155,730
Consumer Industries 2000(dagger) $ 432,129
1999 $ 457,965
1998 $ 161,119
Cyclical Industries 2000(dagger) $ 37,738
1999 $ 22,236
1998** $ 21,141
Defense and Aerospace 2000(dagger) $ 202,860
1999 $ 312,058
1998 $ 381,060
Developing Communications 2000(dagger) $ 8,255,415
1999 $ 1,854,817
1998 $ 1,420,790
Electronics 2000(dagger) $ 27,111,529
1999 $ 13,375,808
1998 $ 14,146,742
Energy 2000(dagger) $ 1,204,091
1999 $ 825,294
1998 $ 1,137,325
Energy Service 2000(dagger) $ 3,977,952
1999 $ 3,826,822
1998 $ 5,735,646
Environmental Services 2000(dagger) $ 92,828
1999 $ 122,145
1998 $ 165,498
Financial Services 2000(dagger) $ 2,973,467
1999 $ 3,668,034
1998 $ 2,799,557
Food and Agriculture 2000(dagger) $ 872,870
1999 $ 1,335,082
1998 $ 1,473,308
Gold 2000(dagger) $ 1,103,778
1999 $ 1,216,228
1998 $ 1,664,398
Health Care 2000(dagger) $ 16,196,325
1999 $ 14,851,440
1998 $ 9,512,189
Home Finance 2000(dagger) $ 2,904,120
1999 $ 7,895,622
1998 $ 7,971,664
Industrial Equipment 2000(dagger) $ 204,936
1999 $ 249,535
1998 $ 358,194
Industrial Materials 2000(dagger) $ 132,530
1999 $ 94,263
1998 $ 178,398
Insurance 2000(dagger) $ 366,679
1999 $ 645,431
1998 $ 657,447
Leisure 2000(dagger) $ 2,325,785
1999 $ 1,721,162
1998 $ 853,326
Medical Delivery 2000(dagger) $ 366,977
1999 $ 909,497
1998 $ 949,169
Medical Equipment and Systems 2000(dagger) $ 228,913
1999*** $ 80,475
Multimedia 2000(dagger) $ 1,229,878
1999 $ 768,461
1998 $ 355,794
Natural Gas 2000(dagger) $ 339,370
1999 $ 301,788
1998 $ 489,011
Natural Resources 2000(dagger) $ 98,795
1999 $ 38,307
1998** $ 38,241
Paper and Forest Products 2000(dagger) $ 124,175
1999 $ 87,942
1998 $ 144,890
Retailing 2000(dagger) $ 1,047,886
1999 $ 1,658,052
1998 $ 911,425
Software and Computer Services 2000(dagger) $ 5,131,852
1999 $ 3,378,317
1998 $ 2,593,824
Technology 2000(dagger) $ 17,262,679
1999 $ 4,515,599
1998 $ 3,293,787
Telecommunications 2000(dagger) $ 6,819,043
1999 $ 4,615,660
1998 $ 2,473,329
Transportation 2000(dagger) $ 121,154
1999 $ 142,306
1998 $ 341,054
Utilities Growth 2000(dagger) $ 3,483,400
1999 $ 2,410,584
1998 $ 1,639,699
Money Market 2000(dagger) $ 1,924,888
1999 $ 1,853,858
1998 $ 1,715,272
</TABLE>
(dagger) Fiscal year ended February 29.
* Business Services and Outsourcing commenced operations of February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
*** Medical Equipment and Systems commenced operations on April 28,
1998.
FMR may, from time to time, voluntarily reimburse all or a portion of
a fund's operating expenses (exclusive of interest, taxes, certain
securities lending costs, brokerage commissions, and extraordinary
expenses), which, in the case of certain funds, is subject to revision
or discontinuance. FMR retains the ability to be repaid for these
expense reimbursements in the amount that expenses fall below the
limit prior to the end of the fiscal year.
Expense reimbursements by FMR will increase a fund's returns and
yield, and repayment of the reimbursement by a fund will lower its
returns and yield.
FMR agreed to reimburse certain of the funds if and to the extent that
the fund's aggregate operating expenses, including management fees,
were in excess of an annual rate of its average net assets. The table
below shows the periods of reimbursement and levels of expense
limitations for the applicable funds; the dollar amount of management
fees incurred under each fund's contract before reimbursement; and the
dollar amount of management fees reimbursed by FMR under the expense
reimbursement for each period.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Aggregate Operating Expense Fiscal Years Ended February 28 Management Fee Before
Limitation Reimbursement
Business Services and 2.50% 1998* $ 2,948
Outsourcing
Construction and Housing 2.50% 1998 $ 155,730
Cyclical Industries 2.50% 2000(dagger) $ 37,738
1999 $ 22,236
1998** $ 21,141
Natural Resources 2.50% 1999 $ 38,307
1998** $ 38,241
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
Amount of Management Fee
Reimbursement
Business Services and $ 2,948
Outsourcing
Construction and Housing $ 9,992
Cyclical Industries $ 27,913
$ 22,236
$ 21,141
Natural Resources $ 38,307
$ 38,241
</TABLE>
* Business Services and Outsourcing commenced operations of February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
(dagger) Fiscal year ended February 29.
SUB-ADVISERS. On behalf of the money market fund, FMR has entered into
a sub-advisory agreement with FIMM pursuant to which FIMM has primary
responsibility for choosing investments for the fund. Prior to January
23, 1998, FMR Texas Inc. (FMR Texas) had primary responsibility for
providing investment management services to the money market fund. On
January 23, 1998, FMR Texas was merged into FIMM, which succeeded to
the operations of FMR Texas.
Under the terms of the sub-advisory agreement for the money market
fund, FMR pays FIMM fees equal to 50% of the management fee payable to
FMR under its management contract with the fund. The fees paid to FIMM
are not reduced by any voluntary or mandatory expense reimbursements
that may be in effect from time to time.
On behalf of the money market fund, for the fiscal year ended February
28, 1998, FMR paid FMR Texas a fee of $857,636. On behalf of the money
market fund, for the fiscal years ended February 29, 2000 and February
28, 1999, FMR paid FIMM fees of $962,444 and $926,930, respectively.
On January 1, 2001, FMR will enter into a sub-advisory agreement with
FMRC on behalf of the stock funds pursuant to which FMRC will have
primary responsibility for choosing investments for the stock funds.
Under the terms of the sub-advisory agreements for each stock fund,
FMR will pay FMRC fees equal to 50% of the management fee payable to
FMR under its management contract with each fund. The fees paid to
FMRC will not be reduced by any voluntary or mandatory expense
reimbursements that may be in effect from time to time.
On behalf of the stock funds, FMR has entered into sub-advisory
agreements with FMR U.K. and FMR Far East. Pursuant to the
sub-advisory agreements, FMR may receive from the sub-advisers
investment research and advice on issuers outside the United States
and FMR may grant the sub-advisers investment management authority as
well as the authority to buy and sell securities if FMR believes it
would be beneficial to the funds.
On behalf of the stock funds, FMR Far East has entered into a
sub-advisory agreement with FIJ pursuant to which FMR Far East may
receive from FIJ investment research and advice relating to Japanese
issuers (and such other Asian issuers as FMR Far East may designate).
For providing non-discretionary investment advice and research
services the sub-advisers are compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East fees equal to
110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs
incurred in connection with providing investment advice and research
services.
(small solid bullet) FMR Far East pays FIJ a fee equal to 100% of
FIJ's costs incurred in connection with providing investment advice
and research services for a fund to FMR Far East.
On behalf of the stock funds, for providing discretionary investment
management and executing portfolio transactions, the sub-advisers are
compensated as follows:
(small solid bullet) FMR pays FMR U.K. and FMR Far East a fee equal to
50% of its monthly management fee with respect to the fund's average
net assets managed by the sub-adviser on a discretionary basis.
For providing investment advice and research services, fees paid to
FMR U.K., FMR Far East, and FIJ on behalf of the stock funds for the
past three fiscal years are shown in the table below.
Fiscal Year Ended February 28 FMR U.K. FMR Far East FIJ
Air Transportation
2000(dagger) $ 570 $ 309 $ 0
1999 $ 2,553 $ 2,411 $ 0
1998 $ 3,327 $ 3,202 $ 0
Automotive
2000(dagger) $ 2,332 $ 1,305 $ 0
1999 $ 6,503 $ 5,175 $ 0
1998 $ 4,434 $ 4,325 $ 0
Banking
2000(dagger) $ 0 $ 0 $ 0
1999 $ 3,255 $ 3,095 $ 0
1998 $ 6,772 $ 6,544 $ 0
Biotechnology
2000(dagger) $ 2,646 $ 596 $ 0
1999 $ 5,639 $ 4,245 $ 0
1998 $ 11,836 $ 10,833 $ 0
Brokerage and Investment
Management
2000(dagger) $ 29,515 $ 16,669 $ 0
1999 $ 35,636 $ 31,379 $ 0
1998 $ 13,584 $ 13,185 $ 0
Business Services and
Outsourcing
2000(dagger) $ 72 $ 35 $ 0
1999 $ 65 $ 48 $ 0
1998* $ 6 $ 5 $ 0
Chemicals
2000(dagger) $ 1,556 $ 928 $ 0
1999 $ 1,562 $ 1,516 $ 0
1998 $ 5,873 $ 5,590 $ 0
Computers
2000(dagger) $ 81,667 $ 43,749 $ 0
1999 $ 17,784 $ 13,154 $ 0
1998 $ 15,517 $ 15,486 $ 0
Construction and Housing
2000(dagger) $ 0 $ 0 $ 0
1999 $ 583 $ 525 $ 0
1998 $ 6 $ 5 $ 0
Consumer Industries
2000(dagger) $ 942 $ 546 $ 0
1999 $ 1,246 $ 1,024 $ 0
1998 $ 474 $ 455 $ 0
Cyclical Industries
2000(dagger) $ 0 $ 0 $ 0
1999 $ 13 $ 9 $ 0
1998** $ 40 $ 40 $ 0
Defense and Aerospace
2000(dagger) $ 79 $ 41 $ 0
1999 $ 0 $ 0 $ 0
1998 $ 1,692 $ 1,755 $ 0
Developing Communications
2000(dagger) $ 101,185 $ 56,627 $ 0
1999 $ 40,270 $ 32,779 $ 0
1998 $ 19,094 $ 18,708 $ 0
Electronics
2000(dagger) $ 135,583 $ 74,675 $ 0
1999 $ 82,887 $ 72,615 $ 0
1998 $ 147,596 $ 143,650 $ 0
Energy
2000(dagger) $ 10,588 $ 5,779 $ 0
1999 $ 22,599 $ 18,894 $ 0
1998 $ 25,414 $ 24,716 $ 0
Energy Service
2000(dagger) $ 15,620 $ 8,823 $ 0
1999 $ 40,212 $ 35,640 $ 0
1998 $ 51,145 $ 49,720 $ 0
Environmental Services
2000(dagger) $ 0 $ 0 $ 0
1999 $ 17 $ 19 $ 0
1998 $ 2,414 $ 2,242 $ 0
Financial Services
2000(dagger) $ 0 $ 0 $ 0
1999 $ 4,454 $ 3,790 $ 0
1998 $ 439 $ 424 $ 0
Food and Agriculture
2000(dagger) $ 13,590 $ 7,815 $ 0
1999 $ 18,053 $ 15,039 $ 0
1998 $ 5,707 $ 5,521 $ 0
Gold
2000(dagger) $ 59,751 $ 33,288 $ 0
1999 $ 20,125 $ 15,199 $ 0
1998 $ 0 $ 0 $ 0
Health Care
2000(dagger) $ 87,073 $ 48,054 $ 0
1999 $ 97,086 $ 78,047 $ 0
1998 $ 96,459 $ 95,116 $ 0
Home Finance
2000(dagger) $ 0 $ 0 $ 0
1999 $ 9,249 $ 9,829 $ 0
1998 $ 14,065 $ 13,533 $ 0
Industrial Equipment
2000(dagger) $ 2,018 $ 1,151 $ 0
1999 $ 590 $ 533 $ 0
1998 $ 736 $ 746 $ 0
Industrial Materials
2000(dagger) $ 0 $ 0 $ 0
1999 $ 35 $ 35 $ 0
1998 $ 1,579 $ 1,540 $ 0
Insurance
2000(dagger) $ 6 $ 3 $ 0
1999 $ 917 $ 879 $ 0
1998 $ 770 $ 746 $ 0
Leisure
2000(dagger) $ 4,908 $ 2,459 $ 0
1999 $ 7,018 $ 5,868 $ 0
1998 $ 1,740 $ 1,685 $ 0
Medical Delivery
2000(dagger) $ 0 $ 0 $ 0
1999 $ 0 $ 0 $ 0
1998 $ 216 $ 187 $ 0
Medical Equipment and Systems
2000(dagger) $ 24 $ 14 $ 0
1999*** $ 73 $ 63 $ 0
Multimedia
2000(dagger) $ 2,979 $ 1,556 $ 0
1999 $ 1,632 $ 1,301 $ 0
1998 $ 711 $ 694 $ 0
Natural Gas
2000(dagger) $ 2,699 $ 1,531 $ 0
1999 $ 1,450 $ 1,150 $ 0
1998 $ 182 $ 154 $ 0
Natural Resources
2000(dagger) $ 572 $ 309 $ 0
1999 $ 1,041 $ 851 $ 0
1998** $ 559 $ 554 $ 0
Paper and Forest Products
2000(dagger) $ 988 $ 593 $ 0
1999 $ 1,858 $ 1,762 $ 0
1998 $ 809 $ 772 $ 0
Retailing
2000(dagger) $ 112 $ 56 $ 0
1999 $ 0 $ 0 $ 0
1998 $ 0 $ 0 $ 0
Software and Computer Services
2000(dagger) $ 10,739 $ 5,863 $ 0
1999 $ 14,881 $ 13,002 $ 0
1998 $ 14,371 $ 13,791 $ 0
Technology
2000(dagger) $ 156,815 $ 85,096 $ 0
1999 $ 86,248 $ 66,343 $ 0
1998 $ 23,941 $ 25,181 $ 0
Telecommunications
2000(dagger) $ 123,753 $ 68,668 $ 0
1999 $ 47,989 $ 39,416 $ 0
1998 $ 37,699 $ 36,443 $ 0
Transportation
2000(dagger) $ 75 $ 45 $ 0
1999 $ 502 $ 474 $ 0
1998 $ 571 $ 575 $ 0
Utilities Growth
2000(dagger) $ 11,958 $ 7,307 $ 0
1999 $ 3,104 $ 2,777 $ 0
1998 $ 3,855 $ 3,672 $ 0
(dagger) Fiscal year ended February 29.
* Business Services and Outsourcing commenced operations of February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
*** Medical Equipment and Systems commenced operations on April 28,
1998.
For discretionary investment management and execution of portfolio
transactions, no fees were paid to FMR U. K. and FMR Far East on
behalf of the stock funds for the past three fiscal years.
DISTRIBUTION SERVICES
Each fund has entered into a distribution agreement with FDC, an
affiliate of FMR. FDC is a broker-dealer registered under the
Securities Exchange Act of 1934 and a member of the National
Association of Securities Dealers, Inc. The distribution agreements
call for FDC to use all reasonable efforts, consistent with its other
business, to secure purchasers for shares of each fund, which are
continuously offered. Promotional and administrative expenses in
connection with the offer and sale of shares are paid by FMR.
Sales charge revenues collected and retained by FDC for the past three
fiscal years are shown in the table below.
<TABLE>
<CAPTION>
Sales Charge Revenue
Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC
<S> <C> <C> <C>
Air Transportation February 28, 2000(dagger) $ 116,840 $ 114,253
1999 $ 432,957 $ 423,538
1998 $ 299,325 $ 290,774
Automotive February 28, 2000(dagger) $ 27,747 $ 27,747
1999 $ 151,425 $ 151,425
1998 $ 70,085 $ 69,822
Banking February 28, 2000(dagger) $ 754,724 $ 753,565
1999 $ 3,590,683 $ 3,579,211
1998 $ 7,288,315 $ 7,262,004
Biotechnology February 28, 2000(dagger) $ 23,234,295 $ 23,232,011
1999 $ 1,182,620 $ 1,176,547
1998 $ 1,105,374 $ 1,099,427
Brokerage and Investment February 28, 2000(dagger) $ 1,404,092 $ 1,402,572
Management
1999 $ 4,817,568 $ 4,806,902
1998 $ 4,327,828 $ 4,314,336
Business Services and February 28, 2000(dagger) $ 305,372 $ 305,372
Outsourcing
1999 $ 661,865 $ 661,865
1998* $ 61,937 $ 61,787
Chemicals February 28, 2000(dagger) $ 91,594 $ 91,594
1999 $ 45,096 $ 44,178
1998 $ 84,712 $ 84,544
Computers February 28, 2000(dagger) $ 11,922,459 $ 11,919,086
1999 $ 9,062,985 $ 9,053,383
1998 $ 3,518,068 $ 3,494,034
Construction and Housing February 28, 2000(dagger) $ 24,695 $ 24,695
1999 $ 451,157 $ 449,854
1998 $ 257,572 $ 257,391
Consumer Industries February 28, 2000(dagger) $ 291,878 $ 288,479
1999 $ 342,823 $ 339,350
1998 $ 84,756 $ 79,995
Cyclical Industries February 28, 2000(dagger) $ 42,617 $ 42,617
1999 $ 16,210 $ 16,210
1998** $ 36,552 $ 36,552
Defense and Aerospace February 28, 2000(dagger) $ 197,536 $ 196,989
1999 $ 127,643 $ 125,494
1998 $ 312,026 $ 309,320
Developing Communications February 28, 2000(dagger) $ 13,537,124 $ 13,526,554
1999 $ 1,740,638 $ 1,737,968
1998 $ 479,806 $ 477,848
Electronics February 28, 2000(dagger) $ 29,173,213 $ 29,139,832
1999 $ 7,287,169 $ 7,252,407
1998 $ 20,665,782 $ 20,595,342
Energy February 28, 2000(dagger) $ 930,422 $ 928,434
1999 $ 570,198 $ 567,585
1998 $ 600,122 $ 592,780
Energy Service February 28, 2000(dagger) $ 2,622,816 $ 2,615,772
1999 $ 3,272,526 $ 3,265,721
1998 $ 10,530,278 $ 10,501,244
Environmental Services February 28, 2000(dagger) $ 66,627 $ 64,068
1999 $ 29,658 $ 28,390
1998 $ 42,162 $ 42,118
Financial Services February 28, 2000(dagger) $ 1,218,365 $ 1,205,409
1999 $ 2,154,649 $ 2,152,071
1998 $ 2,098,142 $ 2,087,581
Food and Agriculture February 28, 2000(dagger) $ 157,165 $ 156,771
1999 $ 373,556 $ 371,478
1998 $ 682,877 $ 665,203
Gold February 28, 2000(dagger) $ 639,487 $ 637,994
1999 $ 691,742 $ 685,928
1998 $ 916,845 $ 902,000
Health Care February 28, 2000(dagger) $ 6,917,352 $ 6,892,954
1999 $ 10,991,959 $ 10,970,853
1998 $ 4,316,495 $ 4,275,358
Home Finance February 28, 2000(dagger) $ 376,497 $ 376,195
1999 $ 4,255,219 $ 4,241,642
1998 $ 9,770,117 $ 9,751,663
Industrial Equipment February 28, 2000(dagger) $ 48,861 $ 48,861
1999 $ 25,189 $ 24,472
1998 $ 60,451 $ 60,217
Industrial Materials February 28, 2000(dagger) $ 120,846 $ 120,846
1999 $ 12,710 $ 12,337
1998 $ 21,426 $ 20,666
Insurance February 28, 2000(dagger) $ 128,554 $ 127,441
1999 $ 351,928 $ 351,772
1998 $ 686,986 $ 664,282
Leisure February 28, 2000(dagger) $ 1,258,444 $ 1,255,993
1999 $ 956,242 $ 946,671
1998 $ 457,999 $ 448,102
Medical Delivery February 28, 2000(dagger) $ 148,780 $ 147,252
1999 $ 324,894 $ 324,831
1998 $ 212,167 $ 208,986
Medical Equipment and Systems February 28, 2000(dagger) $ 317,761 $ 316,216
1999*** $ 283,524 $ 283,524
Multimedia February 28, 2000(dagger) $ 879,938 $ 878,682
1999 $ 599,274 $ 596,505
1998 $ 304,729 $ 289,533
Natural Gas February 28, 2000(dagger) $ 189,442 $ 189,442
1999 $ 123,203 $ 121,320
1998 $ 288,000 $ 286,855
Natural Resources February 28, 2000(dagger) $ 73,194 $ 73,154
1999 $ 24,488 $ 24,488
1998** $ 81,304 $ 81,304
Paper and Forest Products February 28, 2000(dagger) $ 117,490 $ 117,490
1999 $ 45,535 $ 45,535
1998 $ 82,389 $ 81,018
Retailing February 28, 2000(dagger) $ 519,808 $ 519,673
1999 $ 1,568,122 $ 1,565,474
1998 $ 622,003 $ 618,590
Software and Computer Services February 28, 2000(dagger) $ 3,756,113 $ 3,753,515
1999 $ 1,939,605 $ 1,925,580
1998 $ 1,272,908 $ 1,258,051
Technology February 28, 2000(dagger) $ 37,877,519 $ 37,853,864
1999 $ 5,573,254 $ 5,562,533
1998 $ 2,082,341 $ 2,072,865
Telecommunications February 28, 2000(dagger) $ 5,928,316 $ 5,920,617
1999 $ 3,594,841 $ 3,578,078
1998 $ 1,091,356 $ 1,084,052
Transportation February 28, 2000(dagger) $ 106,609 $ 106,409
1999 $ 94,851 $ 93,190
1998 $ 168,254 $ 167,042
Utilities Growth February 28, 2000(dagger) $ 1,834,883 $ 1,833,822
1999 $ 1,250,178 $ 1,246,320
1998 $ 629,220 $ 601,884
Money Market February 28, 2000(dagger) $ 1,898,136 $ 1,885,554
1999 $ 1,708,692 $ 1,617,903
1998 $ 2,402,715 $ 2,223,313
</TABLE>
<TABLE>
<CAPTION>
Deferred Sales Charge Revenue
Amount Paid to FDC Amount Retained by FDC
<S> <C> <C>
Air Transportation $ 1,637 $ 1,637
$ 2,545 $ 2,545
$ 946 $ 946
Automotive $ 430 $ 430
$ 1,131 $ 1,131
$ 597 $ 597
Banking $ 12,204 $ 12,204
$ 8,288 $ 8,288
$ 4,790 $ 4,790
Biotechnology $ 19,543 $ 19,543
$ 23,624 $ 23,624
$ 31,256 $ 31,256
Brokerage and Investment $ 3,484 $ 3,484
Management
$ 5,812 $ 5,812
$ 2,431 $ 2,431
Business Services and $ 574 $ 574
Outsourcing
$ 106 $ 106
$ 0 $ 0
Chemicals $ 4,185 $ 4,185
$ 7,081 $ 7,081
$ 7,955 $ 7,955
Computers $ 7,975 $ 7,975
$ 5,657 $ 5,657
$ 6,144 $ 6,144
Construction and Housing $ 973 $ 973
$ 653 $ 653
$ 240 $ 240
Consumer Industries $ 326 $ 326
$ 208 $ 208
$ 805 $ 805
Cyclical Industries $ 0 $ 0
$ 0 $ 0
$ 0 $ 0
Defense and Aerospace $ 650 $ 650
$ 824 $ 824
$ 1,329 $ 1,329
Developing Communications $ 3,734 $ 3,734
$ 3,177 $ 3,177
$ 6,980 $ 6,980
Electronics $ 10,707 $ 10,707
$ 10,633 $ 10,633
$ 10,101 $ 10,101
Energy $ 9,981 $ 9,981
$ 12,418 $ 12,418
$ 14,514 $ 14,514
Energy Service $ 8,292 $ 8,292
$ 9,358 $ 9,358
$ 11,289 $ 11,289
Environmental Services $ 9,071 $ 9,071
$ 7,574 $ 7,574
$ 6,428 $ 6,428
Financial Services $ 18,493 $ 18,493
$ 13,596 $ 13,596
$ 8,343 $ 8,343
Food and Agriculture $ 9,318 $ 9,318
$ 5,955 $ 5,955
$ 5,255 $ 5,255
Gold $ 22,792 $ 22,792
$ 19,578 $ 19,578
$ 27,084 $ 27,084
Health Care $ 84,087 $ 84,087
$ 58,978 $ 58,978
$ 56,845 $ 56,845
Home Finance $ 11,748 $ 11,748
$ 13,199 $ 13,199
$ 5,349 $ 5,349
Industrial Equipment $ 999 $ 999
$ 1,074 $ 1,074
$ 2,151 $ 2,151
Industrial Materials $ 478 $ 478
$ 1,065 $ 1,065
$ 2,207 $ 2,207
Insurance $ 1,211 $ 1,211
$ 1,491 $ 1,491
$ 786 $ 786
Leisure $ 15,030 $ 15,030
$ 10,919 $ 10,919
$ 13,069 $ 13,069
Medical Delivery $ 4,305 $ 4,305
$ 6,973 $ 6,973
$ 6,095 $ 6,095
Medical Equipment and Systems $ 470 $ 470
$ 2,642 $ 2,642
Multimedia $ 1,738 $ 1,738
$ 1,687 $ 1,687
$ 739 $ 739
Natural Gas $ 1,450 $ 1,450
$ 982 $ 982
$ 2,018 $ 2,018
Natural Resources $ 77 $ 77
$ 8 $ 8
$ 26 $ 26
Paper and Forest Products $ 1,145 $ 1,145
$ 737 $ 737
$ 2,161 $ 2,161
Retailing $ 4,022 $ 4,022
$ 2,870 $ 2,870
$ 2,757 $ 2,757
Software and Computer Services $ 6,139 $ 6,139
$ 4,793 $ 4,793
$ 5,910 $ 5,910
Technology $ 32,154 $ 32,154
$ 32,321 $ 32,321
$ 22,926 $ 22,926
Telecommunications $ 11,792 $ 11,792
$ 12,323 $ 12,323
$ 16,675 $ 16,675
Transportation $ 378 $ 378
$ 657 $ 657
$ 925 $ 925
Utilities Growth $ 15,873 $ 15,873
$ 21,580 $ 21,580
$ 22,382 $ 22,382
Money Market $ 62,882 $ 62,882
$ 67,970 $ 67,970
$ 95,881 $ 95,881
</TABLE>
(dagger) Fiscal year ended February 29.
* Business Services and Outsourcing commenced operations on February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
*** Medical Equipment and Systems commenced operations on April 28,
1998.
FDC may compensate intermediaries (such as banks, broker-dealers and
other service-providers) that satisfy certain criteria established
from time to time by FDC relating to the level or type of services
provided by the intermediary, the sale or expected sale of significant
amounts of shares, or other factors.
TRANSFER AND SERVICE AGENT AGREEMENTS
Each fund has entered into a transfer agent agreement with FSC, an
affiliate of FMR. Under the terms of the agreements, FSC performs
transfer agency, dividend disbursing, and shareholder services for
each fund.
For providing transfer agency services, FSC receives an account fee
and an asset-based fee each paid monthly with respect to each account
in a fund. For retail accounts and certain institutional accounts,
these fees are based on account size and fund type. For certain
institutional retirement accounts, these fees are based on fund type.
For certain other institutional retirement accounts, these fees are
based on account type and fund type. The account fees are subject to
increase based on postage rate changes.
For the stock funds, the asset-based fees are subject to adjustment if
the year-to-date total return of the S&P 500 exceeds a positive or
negative 15%.
FSC also collects small account fees from certain accounts with
balances of less than $2,500.
In addition, FSC collects a $7.50 exchange fee for each exchange out
of a stock fund.
In addition, FSC receives the pro rata portion of the transfer agency
fees applicable to shareholder accounts in a qualified state tuition
program (QSTP), as defined under the Small Business Job Protection Act
of 1996, managed by FMR or an affiliate and in each Fidelity Freedom
Fund and Fidelity Four-in-One Index Fund, funds of funds managed by an
FMR affiliate, according to the percentage of the QSTP's, Freedom
Fund's or Fidelity Four-in-One Index Fund's assets that is invested in
a fund, subject to certain limitations in the case of Fidelity
Four-in-One Index Fund.
FSC pays out-of-pocket expenses associated with providing transfer
agent services. In addition, FSC bears the expense of typesetting,
printing, and mailing prospectuses, statements of additional
information, and all other reports, notices, and statements to
existing shareholders, with the exception of proxy statements.
Each fund has also entered into a service agent agreement with FSC .
Under the terms of the agreements, FSC calculates the NAV and
dividends for each fund, maintains each fund's portfolio and general
accounting records, and administers each stock fund's securities
lending program.
For providing pricing and bookkeeping services, FSC receives a monthly
fee based on each fund's average daily net assets throughout the
month.
The annual rates for pricing and bookkeeping services for money market
funds are 0.0150% of the first $500 million of average net assets,
0.0075% of average net assets between $500 million and $10 billion,
0.0021% of average net assets between $10 billion and $25 billion, and
0.00075% of average net assets in excess of $25 billion. The fee, not
including reimbursement for out-of-pocket expenses, is limited to a
minimum of $40,000 per year.
The annual rates for pricing and bookkeeping services for the stock
funds are 0.0650% of the first $500 million of average net assets,
0.0400% of average net assets between $500 million and $3 billion,
0.0021% of average net assets between $3 billion and $25 billion, and
0.00075% of average net assets in excess of $25 billion. The fee, not
including reimbursement for out-of-pocket expenses, is limited to a
minimum of $60,000 per year.
Pricing and bookkeeping fees, including reimbursement for
out-of-pocket expenses, paid by the funds to FSC for the past three
fiscal years are shown in the table below.
Fund 2000 1999 1998
Air Transportation $ 60,909 $ 98,333 $ 73,865
Automotive $ 60,356 $ 67,412 $ 65,849
Banking $ 476,285 $ 777,110 $ 749,121
Biotechnology $ 729,882 $ 518,521 $ 538,574
Brokerage and Investment $ 348,207 $ 593,407 $ 404,906
Management
Business Services and $ 60,419 $ 60,809 $ 5,000*
Outsourcing
Chemicals $ 60,369 $ 62,258 $ 83,611
Computers $ 1,330,357 $ 746,605 $ 578,646
Construction and Housing $ 60,339 $ 80,383 $ 60,209
Consumer Industries $ 61,077 $ 75,037 $ 61,506
Cyclical Industries $ 60,013 $ 60,050 $ 59,755**
Defense and Aerospace $ 60,360 $ 68,157 $ 68,287
Developing Communications $ 825,400 $ 287,287 $ 239,077
Electronics $ 1,703,281 $ 967,497 $ 802,315
Energy $ 153,222 $ 135,861 $ 191,416
Energy Service $ 467,468 $ 545,287 $ 680,412
Environmental Services $ 60,320 $ 57,141 $ 60,348
Financial Services $ 370,696 $ 543,141 $ 465,691
Food and Agriculture $ 112,209 $ 220,104 $ 246,634
Gold $ 140,324 $ 199,332 $ 280,044
Health Care $ 1,567,581 $ 964,925 $ 800,697
Home Finance $ 359,558 $ 753,655 $ 791,859
Industrial Equipment $ 60,362 $ 60,400 $ 65,050
Industrial Materials $ 60,331 $ 60,350 $ 60,356
Insurance $ 61,084 $ 106,572 $ 114,165
Leisure $ 295,502 $ 279,815 $ 143,851
Medical Delivery $ 60,769 $ 150,958 $ 161,193
Medical Equipment and Systems $ 60,352 $ 50,606*** N/A
Multimedia $ 155,406 $ 124,969 $ 68,383
Natural Gas $ 60,405 $ 60,991 $ 82,484
Natural Resources $ 60,165 $ 60,054 $ 59,758**
Paper and Forest Products $ 60,328 $ 60,339 $ 60,338
Retailing $ 134,949 $ 268,863 $ 153,141
Software and Computer Services $ 559,415 $ 517,976 $ 436,026
Technology $ 1,325,662 $ 622,874 $ 524,451
Telecommunications $ 711,621 $ 625,067 $ 410,851
Transportation $ 60,333 $ 61,603 $ 64,993
Utilities Growth $ 419,990 $ 389,868 $ 274,740
Money Market $ 119,494 $ 120,261 $ 111,447
* Business Services and Outsourcing commenced operations on February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
*** Medical Equipment and Systems commenced operations on April 28,
1998.
For administering each stock fund's securities lending program, FSC is
paid based on the number and duration of individual securities loans.
Payments made by the funds to FSC for securities lending for the past
three fiscal years are shown in the table below.
Fund 2000 1999 1998
Air Transportation $ 41 - -
Automotive $ 8 - -
Banking $ 191 $ 145 $ 2,730
Biotechnology $ 8,857 $ 18,000 $ 8,740
Brokerage and Investment $ 754 - -
Management
Business Services and $ 71 - -*
Outsourcing
Chemicals $ 7 $ 395 $ 4,265
Computers $ 12,176 $ 17,470 $ 11,975
Construction and Housing $ 2 $ 355 $ 298
Consumer Industries $ 107 - -
Cyclical Industries $ 4 - -**
Defense and Aerospace $ 42 - -
Developing Communications $ 5,537 - -
Electronics $ 7,949 $ 14,330 $ 31,045
Energy $ 435 $ 365 $ 575
Energy Service $ 530 $ 125 $ 2,025
Environmental Services $ 1 - -
Financial Services $ 520 $ 275 $ 775
Food and Agriculture $ 360 $ 2,160 $ 5,870
Gold $ 115 $ 435 $ 1,255
Health Care $ 4,166 $ 13,910 $ 7,995
Home Finance $ 2 - -
Industrial Equipment $ 37 - -
Industrial Materials $ 36 - -
Insurance $ 11 - -
Leisure $ 274 - -
Medical Delivery $ 37 $ 2,510 $ 1,275
Medical Equipment and Systems $ 49 -*** N/A
Multimedia $ 495 - -
Natural Gas $ 23 - -
Natural Resources $ 15 - -**
Paper and Forest Products $ 2 - -
Retailing $ 135 $ 125 $ 2,570
Software and Computer Services $ 8,590 $ 7,605 $ 18,840
Technology $ 20,865 $ 11,065 $ 20,865
Telecommunications $ 14,479 $ 57,445 $ 10,585
Transportation $ 10 $ 625 $ 3,155
Utilities Growth $ 4,146 $ 6,915 $ 2,530
* Business Services and Outsourcing commenced operations on February
4, 1998.
** Cyclical Industries and Natural Resources commenced operations on
March 3, 1997.
*** Medical Equipment and Systems commenced operations on April 28,
1998.
DESCRIPTION OF THE TRUST
TRUST ORGANIZATION. Fidelity Select Air Transportation Portfolio,
Automotive Portfolio, Banking Portfolio, Biotechnology Portfolio,
Brokerage and Investment Management Portfolio, Business Services and
Outsourcing Portfolio, Chemicals Portfolio, Computers Portfolio,
Construction and Housing Portfolio, Consumer Industries Portfolio,
Cyclical Industries Portfolio, Defense and Aerospace Portfolio,
Developing Communications Portfolio, Electronics Portfolio, Energy
Portfolio, Energy Service Portfolio, Environmental Services Portfolio,
Financial Services Portfolio, Food and Agriculture Portfolio, Gold
Portfolio, Health Care Portfolio, Home Finance Portfolio, Industrial
Equipment Portfolio, Industrial Materials Portfolio, Insurance
Portfolio, Leisure Portfolio, Medical Delivery Portfolio, Medical
Equipment and Systems Portfolio, Multimedia Portfolio, Natural Gas
Portfolio, Natural Resources Portfolio, Paper and Forest Products
Portfolio, Retailing Portfolio, Software and Computer Services
Portfolio, Technology Portfolio, Telecommunications Portfolio,
Transportation Portfolio, Utilities Growth Portfolio, and Money Market
Portfolio are funds of Fidelity Select Portfolios, an open-end
management investment company organized as a Massachusetts business
trust on November 20, 1980. On August 2, 1999, Banking Portfolio
changed its name from Regional Banks Portfolio to Banking Portfolio.
On June 1, 1998, Gold Portfolio changed its name from American Gold
Portfolio to Gold Portfolio. On July 18, 1996, Consumer Industries
Portfolio changed its name from Consumer Products Portfolio to
Consumer Industries Portfolio. Currently, there are 39 funds in
Fidelity Select Portfolios: Air Transportation Portfolio, Automotive
Portfolio, Banking Portfolio, Biotechnology Portfolio, Brokerage and
Investment Management Portfolio, Business Services and Outsourcing
Portfolio, Chemicals Portfolio, Computers Portfolio, Construction and
Housing Portfolio, Consumer Industries Portfolio, Cyclical Industries
Portfolio, Defense and Aerospace Portfolio, Developing Communications
Portfolio, Electronics Portfolio, Energy Portfolio, Energy Service
Portfolio, Environmental Services Portfolio, Financial Services
Portfolio, Food and Agriculture Portfolio, Gold Portfolio, Health Care
Portfolio, Home Finance Portfolio, Industrial Equipment Portfolio,
Industrial Materials Portfolio, Insurance Portfolio, Leisure
Portfolio, Medical Delivery Portfolio, Medical Equipment and Systems
Portfolio, Multimedia Portfolio, Natural Gas Portfolio, Natural
Resources Portfolio, Paper and Forest Products Portfolio, Retailing
Portfolio, Software and Computer Services Portfolio, Technology
Portfolio, Telecommunications Portfolio, Transportation Portfolio,
Utilities Growth Portfolio, and Money Market Portfolio. The Trustees
are permitted to create additional funds in the trust and to create
additional classes of the funds.
The assets of the trust received for the issue or sale of shares of
each fund and all income, earnings, profits, and proceeds thereof,
subject to the rights of creditors, are allocated to such fund, and
constitute the underlying assets of such fund. The underlying assets
of each fund in the trust shall be charged with the liabilities and
expenses attributable to such fund. Any general expenses of the trust
shall be allocated between or among any one or more of the funds.
SHAREHOLDER LIABILITY. The trust is an entity commonly known as a
"Massachusetts business trust." Under Massachusetts law, shareholders
of such a trust may, under certain circumstances, be held personally
liable for the obligations of the trust.
The Declaration of Trust contains an express disclaimer of shareholder
liability for the debts, liabilities, obligations, and expenses of the
trust or fund. The Declaration of Trust provides that the trust shall
not have any claim against shareholders except for the payment of the
purchase price of shares and requires that each agreement, obligation,
or instrument entered into or executed by the trust or the Trustees
relating to the trust or to a fund shall include a provision limiting
the obligations created thereby to the trust or to one or more funds
and its or their assets. The Declaration of Trust further provides
that shareholders of a fund shall not have a claim on or right to any
assets belonging to any other fund.
The Declaration of Trust provides for indemnification out of each
fund's property of any shareholder or former shareholder held
personally liable for the obligations of the fund solely by reason of
his or her being or having been a shareholder and not because of his
or her acts or omissions or for some other reason. The Declaration of
Trust also provides that each fund shall, upon request, assume the
defense of any claim made against any shareholder for any act or
obligation of the fund and satisfy any judgment thereon. Thus, the
risk of a shareholder incurring financial loss on account of
shareholder liability is limited to circumstances in which a fund
itself would be unable to meet its obligations. FMR believes that, in
view of the above, the risk of personal liability to shareholders is
remote.
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. As a shareholder, you are entitled to one vote for each
dollar of net asset value you own. The voting rights of shareholders
can be changed only by a shareholder vote. Shares may be voted in the
aggregate, by fund, and by class.
The shares have no preemptive or conversion rights. Shares are fully
paid and nonassessable, except as set forth under the heading
"Shareholder Liability" above.
The trust or a fund may be terminated upon the sale of its assets to,
or merger with, another open-end management investment company or
series thereof, or upon liquidation and distribution of its assets.
Generally, the merger of the trust or a fund with another operating
mutual fund or the sale of substantially all of the assets of the
trust or a fund to another operating mutual fund requires approval by
a vote of shareholders of the trust or the fund. The Trustees may,
however, reorganize or terminate the trust or a fund without prior
shareholder approval. In the event of the dissolution or liquidation
of the trust, shareholders of each of its funds are entitled to
receive the underlying assets of such fund available for distribution.
In the event of the dissolution or liquidation of a fund, shareholders
of that fund are entitled to receive the underlying assets of the fund
available for distribution.
CUSTODIANS. Brown Brothers Harriman & Co., 40 Water Street, Boston,
Massachusetts, is custodian of the assets of the stock funds. The Bank
of New York, 110 Washington Street, New York, New York, is custodian
of the assets of the money market fund. Each custodian is responsible
for the safekeeping of a fund's assets and the appointment of any
subcustodian banks and clearing agencies. The Chase Manhattan Bank,
headquartered in New York, also may serve as a special purpose
custodian of certain assets in connection with repurchase agreement
transactions. For the stock funds, The Bank of New York, headquartered
in New York, also may serve as a special purpose custodian of certain
assets in connection with repurchase agreement transactions.
FMR, its officers and directors, its affiliated companies, and members
of the Board of Trustees may, from time to time, conduct transactions
with various banks, including banks serving as custodians for certain
funds advised by FMR. The Boston branch of the stock funds' custodian
leases its office space from an affiliate of FMR at a lease payment
which, when entered into, was consistent with prevailing market rates.
Transactions that have occurred to date include mortgages and personal
and general business loans. In the judgment of FMR, the terms and
conditions of those transactions were not influenced by existing or
potential custodial or other fund relationships.
AUDITOR. PricewaterhouseCoopers LLP, 160 Federal Street, Boston,
Massachusetts, serves as independent accountant for each fund. The
auditor examines financial statements for the funds and provides other
audit, tax, and related services.
FINANCIAL STATEMENTS
Each fund's financial statements and financial highlights for the
fiscal year ended February 29, 2000, and report of the auditor, are
included in the fund's annual report and are incorporated herein by
reference.
APPENDIX
Fidelity, Select Portfolios, Fidelity Investments & (Pyramid) Design,
Fidelity Focus, Fidelity Investments, and Magellan 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.
