SUPPLEMENT TO THE
FIDELITY(registered trademark) SELECT PORTFOLIOS(registered trademark)
APRIL 29, 1999
STATEMENT OF ADDITIONAL INFORMATION
REGIONAL BANKS PORTFOLIO HAS BEEN RENAMED BANKING PORTFOLIO. ALL
REFERENCES TO REGIONAL BANKS PORTFOLIO THROUGHOUT THIS SAI SHOULD BE
REPLACED WITH BANKING PORTFOLIO.
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EACH STOCK
FUND (EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL
INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND
NATURAL RESOURCES PORTFOLIO) FOUND IN THE "INVESTMENT POLICIES AND
LIMITATIONS" SECTION BEGINNING ON PAGE 2.
(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 limitation (2)).
(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
the 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.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR EACH OF
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES
PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL
RESOURCES PORTFOLIO FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 3.
(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 limitation (2)).
(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 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.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOR MONEY
MARKET PORTFOLIO FOUND IN THE "INVESTMENT POLICIES AND LIMITATIONS"
SECTION BEGINNING ON PAGE 5.
(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.
(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.)
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"INVESTMENT POLICIES AND LIMITATIONS" SECTION BEGINNING ON PAGE 2.
SOURCES OF CREDIT OR LIQUIDITY 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.
THE FOLLOWING INFORMATION HAS BEEN REMOVED FROM THE "TRUSTEES AND
OFFICERS" SECTION BEGINNING ON PAGE 51.
E. BRADLEY JONES (71), Trustee. Prior to his retirement in 1984,
Mr. Jones was Chairman and Chief Executive Officer of LTV Steel
Company. He is a Director of TRW Inc. (original equipment and
replacement products), Consolidated Rail Corporation, Birmingham Steel
Corporation, and RPM, Inc. (manufacturer of chemical products), and he
previously served as a Director of NACCO Industries, Inc. (mining and
manufacturing, 1985-1995), Hyster-Yale Materials Handling, Inc.
(1985-1995), and Cleveland-Cliffs Inc (mining), and as a Trustee of
First Union Real Estate Investments. In addition, he serves as a
Trustee of the Cleveland Clinic Foundation, where he has also been a
member of the Executive Committee as well as Chairman of the Board and
President, a Trustee and member of the Executive Committee of
University School (Cleveland), and a Trustee of Cleveland Clinic
Florida.
LEONARD M. RUSH (53), Assistant Treasurer (1994), is an employee of
FMR (1994). Prior to becoming Assistant Treasurer of the Fidelity
funds, Mr. Rush was Chief Compliance Officer of FMR Corp. (1993-1994)
and Chief Financial Officer of Fidelity Brokerage Services, Inc.
(1990-1993).
THE FOLLOWING INFORMATION SUPPLEMENTS THE SIMILAR INFORMATION FOUND
IN THE "TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 51.
NED C. LAUTENBACH (55), 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).
MARIA F. DWYER (41), Deputy Treasurer (2000), is Deputy Treasurer
of the Fidelity funds 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.
THE FOLLOWING INFORMATION REPLACES THE COMPENSATION TABLE FOUND IN THE
"TRUSTEES AND OFFICERS" SECTION BEGINNING ON PAGE 53.
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 28, 1999, or
calendar year ended December 31, 1998, as applicable.
Compensation Table
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** J. Gary Burkhead ** Ralph F. Cox
FUNDA
Air TransportationB $ 0 $ 0 $ 0 $ 36
AutomotiveB $ 0 $ 0 $ 0 $ 20
BiotechnologyB $ 0 $ 0 $ 0 $ 194
Brokerage and Investment $ 0 $ 0 $ 0 $ 252
ManagementB
Business Services and $ 0 $ 0 $ 0 $ 17
OutsourcingB
ChemicalsB $ 0 $ 0 $ 0 $ 17
ComputersB $ 0 $ 0 $ 0 $ 316
Construction and HousingB $ 0 $ 0 $ 0 $ 28
Consumer IndustriesB $ 0 $ 0 $ 0 $ 26
Cyclical IndustriesB $ 0 $ 0 $ 0 $ 1
Defense and AerospaceB $ 0 $ 0 $ 0 $ 20
Developing CommunicationsB $ 0 $ 0 $ 0 $ 96
ElectronicsB $ 0 $ 0 $ 0 $ 761
EnergyB $ 0 $ 0 $ 0 $ 49
Energy ServiceB $ 0 $ 0 $ 0 $ 241
Environmental ServicesB $ 0 $ 0 $ 0 $ 7
Financial ServicesB $ 0 $ 0 $ 0 $ 216
Food and AgricultureB $ 0 $ 0 $ 0 $ 80
GoldB $ 0 $ 0 $ 0 $ 73
Health CareB,C,D $ 0 $ 0 $ 0 $ 843
Home FinanceB $ 0 $ 0 $ 0 $ 487
Industrial EquipmentB $ 0 $ 0 $ 0 $ 15
Industrial MaterialsB $ 0 $ 0 $ 0 $ 6
InsuranceB $ 0 $ 0 $ 0 $ 39
LeisureB $ 0 $ 0 $ 0 $ 98
Medical DeliveryB $ 0 $ 0 $ 0 $ 55
Medical Equipment and SystemsB+ $ 0 $ 0 $ 0 $ 5
MultimediaB $ 0 $ 0 $ 0 $ 44
Natural GasB $ 0 $ 0 $ 0 $ 18
Natural ResourcesB $ 0 $ 0 $ 0 $ 2
Paper and Forest ProductsB $ 0 $ 0 $ 0 $ 6
Precious Metals and MineralsB $ 0 $ 0 $ 0 $ 53
Regional BanksB $ 0 $ 0 $ 0 $ 439
RetailingB $ 0 $ 0 $ 0 $ 91
Software and Computer ServicesB $ 0 $ 0 $ 0 $ 191
TechnologyB $ 0 $ 0 $ 0 $ 240
TelecommunicationsB $ 0 $ 0 $ 0 $ 263
TransportationB $ 0 $ 0 $ 0 $ 10
Utilities GrowthB $ 0 $ 0 $ 0 $ 138
Money MarketB $ 0 $ 0 $ 0 $ 326
TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 0 $ 223,500
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AGGREGATE COMPENSATION
FROM A Phyllis Burke Davis Robert M. Gates E. Bradley Jones**** Donald J. Kirk Ned C. Lautenbach***
FUNDA
Air TransportationB $ 36 $ 36 $ 36 $ 36 $ 0
AutomotiveB $ 19 $ 20 $ 19 $ 20 $ 0
BiotechnologyB $ 191 $ 193 $ 192 $ 194 $ 0
Brokerage and Investment $ 248 $ 253 $ 251 $ 255 $ 0
ManagementB
Business Services and $ 17 $ 17 $ 17 $ 18 $ 0
OutsourcingB
ChemicalsB $ 17 $ 17 $ 17 $ 17 $ 0
ComputersB $ 311 $ 315 $ 313 $ 315 $ 0
Construction and HousingB $ 27 $ 28 $ 27 $ 28 $ 0
Consumer IndustriesB $ 26 $ 26 $ 26 $ 27 $ 0
Cyclical IndustriesB $ 1 $ 1 $ 1 $ 1 $ 0
Defense and AerospaceB $ 20 $ 20 $ 20 $ 20 $ 0
Developing CommunicationsB $ 94 $ 96 $ 95 $ 96 $ 0
ElectronicsB $ 751 $ 761 $ 756 $ 763 $ 0
EnergyB $ 49 $ 49 $ 49 $ 50 $ 0
Energy ServiceB $ 238 $ 242 $ 240 $ 243 $ 0
Environmental ServicesB $ 7 $ 7 $ 7 $ 7 $ 0
Financial ServicesB $ 213 $ 216 $ 214 $ 218 $ 0
Food and AgricultureB $ 79 $ 80 $ 79 $ 80 $ 0
GoldB $ 72 $ 72 $ 72 $ 73 $ 0
Health CareB,C,D $ 832 $ 842 $ 837 $ 848 $ 0
Home FinanceB $ 481 $ 488 $ 485 $ 493 $ 0
Industrial EquipmentB $ 15 $ 15 $ 15 $ 15 $ 0
Industrial MaterialsB $ 6 $ 6 $ 6 $ 6 $ 0
InsuranceB $ 38 $ 39 $ 39 $ 39 $ 0
LeisureB $ 96 $ 98 $ 97 $ 99 $ 0
Medical DeliveryB $ 54 $ 55 $ 55 $ 56 $ 0
Medical Equipment and
SystemsB+ $ 5 $ 5 $ 5 $ 5 $ 0
MultimediaB $ 43 $ 44 $ 43 $ 44 $ 0
Natural GasB $ 18 $ 18 $ 18 $ 19 $ 0
Natural ResourcesB $ 2 $ 2 $ 2 $ 2 $ 0
Paper and Forest ProductsB $ 6 $ 6 $ 6 $ 6 $ 0
Precious Metals and
MineralsB $ 52 $ 53 $ 53 $ 53 $ 0
Regional BanksB $ 433 $ 440 $ 437 $ 443 $ 0
RetailingB $ 90 $ 91 $ 91 $ 92 $ 0
Software and Computer
ServicesB $ 188 $ 191 $ 189 $ 192 $ 0
TechnologyB $ 237 $ 240 $ 239 $ 240 $ 0
TelecommunicationsB $ 259 $ 263 $ 261 $ 265 $ 0
TransportationB $ 10 $ 10 $ 10 $ 10 $ 0
Utilities GrowthB $ 136 $ 138 $ 137 $ 138 $ 0
Money MarketB $ 322 $ 326 $ 323 $ 330 $ 0
TOTAL COMPENSATION FROM
THE $ 220,500 $ 223,500 $222,000 $ 226,500 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
AGGREGATE COMPENSATION
FROM A Peter S. Lynch** William O. McCoy Gerald C. McDonough Marvin L. Mann Robert C. Pozen **
FUNDA
Air TransportationB $ 0 $ 36 $ 44 $ 36 $ 0
AutomotiveB $ 0 $ 20 $ 24 $ 20 $ 0
BiotechnologyB $ 0 $ 193 $ 237 $ 193 $ 0
Brokerage and Investment $ 0 $ 253 $ 309 $ 253 $ 0
ManagementB
Business Services and $ 0 $ 17 $ 21 $ 17 $ 0
OutsourcingB
ChemicalsB $ 0 $ 17 $ 21 $ 17 $ 0
ComputersB $ 0 $ 315 $ 385 $ 315 $ 0
Construction and HousingB $ 0 $ 28 $ 34 $ 28 $ 0
Consumer IndustriesB $ 0 $ 26 $ 32 $ 26 $ 0
Cyclical IndustriesB $ 0 $ 1 $ 2 $ 1 $ 0
Defense and AerospaceB $ 0 $ 20 $ 25 $ 20 $ 0
Developing CommunicationsB $ 0 $ 96 $ 117 $ 96 $ 0
ElectronicsB $ 0 $ 761 $ 931 $ 761 $ 0
EnergyB $ 0 $ 49 $ 60 $ 49 $ 0
Energy ServiceB $ 0 $ 242 $ 296 $ 242 $ 0
Environmental ServicesB $ 0 $ 7 $ 9 $ 7 $ 0
Financial ServicesB $ 0 $ 216 $ 264 $ 216 $ 0
Food and AgricultureB $ 0 $ 80 $ 98 $ 80 $ 0
GoldB $ 0 $ 72 $ 89 $ 72 $ 0
Health CareB,C,D $ 0 $ 842 $ 1,031 $ 842 $ 0
Home FinanceB $ 0 $ 488 $ 598 $ 488 $ 0
Industrial EquipmentB $ 0 $ 15 $ 18 $ 15 $ 0
Industrial MaterialsB $ 0 $ 6 $ 7 $ 6 $ 0
InsuranceB $ 0 $ 39 $ 48 $ 39 $ 0
LeisureB $ 0 $ 98 $ 120 $ 98 $ 0
Medical DeliveryB $ 0 $ 55 $ 67 $ 55 $ 0
Medical Equipment and
SystemsB+ $ 0 $ 5 $ 6 $ 5 $ 0
MultimediaB $ 0 $ 44 $ 54 $ 44 $ 0
Natural GasB $ 0 $ 18 $ 23 $ 18 $ 0
Natural ResourcesB $ 0 $ 2 $ 3 $ 2 $ 0
Paper and Forest ProductsB $ 0 $ 6 $ 8 $ 6 $ 0
Precious Metals and MineralsB $ 0 $ 53 $ 65 $ 53 $ 0
Regional BanksB $ 0 $ 440 $ 539 $ 440 $ 0
RetailingB $ 0 $ 91 $ 112 $ 91 $ 0
Software and Computer ServicesB $ 0 $ 191 $ 233 $ 191 $ 0
TechnologyB $ 0 $ 240 $ 294 $ 240 $ 0
TelecommunicationsB $ 0 $ 263 $ 322 $ 263 $ 0
TransportationB $ 0 $ 10 $ 12 $ 10 $ 0
Utilities GrowthB $ 0 $ 138 $ 169 $ 138 $ 0
Money MarketB $ 0 $ 326 $ 396 $ 326 $ 0
TOTAL COMPENSATION FROM THE $ 0 $ 223,500 $ 273,500 $ 220,500 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C>
AGGREGATE COMPENSATION FROM A Thomas R. Williams
FUNDA
Air TransportationB $ 36
AutomotiveB $ 20
BiotechnologyB $ 193
Brokerage and Investment $ 253
ManagementB
Business Services and $ 17
OutsourcingB
ChemicalsB $ 17
ComputersB $ 315
Construction and HousingB $ 28
Consumer IndustriesB $ 26
Cyclical IndustriesB $ 1
Defense and AerospaceB $ 20
Developing CommunicationsB $ 96
ElectronicsB $ 761
EnergyB $ 49
Energy ServiceB $ 242
Environmental ServicesB $ 7
Financial ServicesB $ 216
Food and AgricultureB $ 80
GoldB $ 72
Health CareB,C,D $ 842
Home FinanceB $ 488
Industrial EquipmentB $ 15
Industrial MaterialsB $ 6
InsuranceB $ 39
LeisureB $ 98
Medical DeliveryB $ 55
Medical Equipment and SystemsB+ $ 5
MultimediaB $ 44
Natural GasB $ 18
Natural ResourcesB $ 2
Paper and Forest ProductsB $ 6
Precious Metals and MineralsB $ 53
Regional BanksB $ 440
RetailingB $ 91
Software and Computer ServicesB $ 191
TechnologyB $ 240
TelecommunicationsB $ 263
TransportationB $ 10
Utilities GrowthB $ 138
Money MarketB $ 326
TOTAL COMPENSATION FROM THE $ 223,500
FUND COMPLEX*,A
</TABLE>
* Information is for the calendar year ended December 31, 1998 for 237
funds in the complex.
** Interested Trustees of the funds, Ms. Johnson and Mr. Burkhead 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.
+ Estimated
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, 1998, 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, $55,039; Marvin L. Mann, $55,039; Thomas R.
Williams, $63,433; and William O. McCoy, $55,039.
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, $379; Phyllis Burke Davis, $379;
Robert M. Gates, $379; E. Bradley Jones, $379; Donald J. Kirk, $379;
William O. McCoy, $379; Gerald C. McDonough, $443; Marvin L. Mann,
$379; and Thomas R. Williams, $379.
D Certain of the non-interested Trustees' aggregate compensation from
a fund includes accrued voluntary deferred compensation as follows:
Ralph F. Cox, $321, Health Care; William O. McCoy, $321, Health Care;
Marvin L. Mann, $263, Health Care; and Thomas R. Williams, $321,
Health Care.
THE FOLLOWING INFORMATION SUPPLEMENTS SIMILAR INFORMATION FOUND IN
THE "CONTROL OF INVESTMENT ADVISERS" SECTION BEGINNING ON PAGE 55.
Fidelity International Limited (FIL), a Bermuda company formed in
1968, is the ultimate parent company of Fidelity Investments Japan
Ltd. (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 FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 62.
SUB-ADVISERS. 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.
THE FOLLOWING INFORMATION SUPPLEMENTS SIMILAR INFORMATION FOUND IN
THE "MANAGEMENT CONTRACTS" SECTION ON PAGE 62.
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).
THE FOLLOWING INFORMATION REPLACES SIMILAR INFORMATION FOUND IN THE
"MANAGEMENT CONTRACTS" SECTION ON PAGE 62.
For providing non-discretionary investment advice and research
services, FMR pays FMR U.K. and FMR Far East fees equal to 110% and
105%, respectively, of FMR U.K.'s and FMR Far East's costs incurred in
connection with providing investment advice and research services. For
providing non-discretionary investment advice and research services,
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.
THE FOLLOWING INFORMATION REPLACES THE "GROUP FEE RATE" AND "EFFECTIVE
ANNUAL FEE RATE" SCHEDULES FOR THE MONEY MARKET FUND FOUND ON PAGE 57.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
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 FOLLOWING INFORMATION REPLACES THE "GROUP FEE RATE" AND "EFFECTIVE
ANNUAL FEE RATE" SCHEDULES FOR THE STOCK FUNDS FOUND ON PAGE 58.
<TABLE>
<CAPTION>
<S> <C> <C> <C>
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>
