SUPPLEMENT TO THE FIDELITY SELECT
PORTFOLIOS(registered trademark) APRIL 29, 1999 PROSPECTUS
At a recent shareholder meeting for Fidelity Select Precious Metals
and Minerals Portfolio, shareholders approved the merger of this fund
into Fidelity Select Gold Portfolio. On or about the close of business
of the New York Stock Exchange on February 29, 2000, shareholders of
Fidelity Select Precious Metals and Minerals Portfolio will receive
the number of full and fractional shares of Fidelity Select Gold
Portfolio equal in value to the aggregate net asset value of their
shares of Fidelity Select Precious Metals and Minerals Portfolio.
Fidelity has agreed to limit the total operating expenses of Fidelity
Select Gold Portfolio to 1.54% of average net assets through February
28, 2001, after which Fidelity Select Gold Portfolio's expenses could
increase.
REGIONAL BANKS PORTFOLIO HAS CHANGED ITS NAME TO "BANKING PORTFOLIO."
References in the Prospectus to "Regional Banks Portfolio" are each
hereby replaced by "Banking Portfolio" and references to "Regional
Banks" are each hereby replaced by "Banking."
The following information replaces similar information for "Banking
Portfolio" found in the "Fund Summary" section on page P-15.
PRINCIPAL INVESTMENT STRATEGIES
FMR's principal investment strategies include:
(small solid bullet) Investing primarily in common stocks.
(small solid bullet) Investing at least 80% of assets in securities of
companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans.
(small solid bullet) Investing in domestic and foreign issuers.
(small solid bullet) Using fundamental analysis of each issuer's
financial condition and industry position and market and economic
conditions to select investments.
The following information replaces similar information found under the
heading "Average Annual Returns" in the "Fund Summary" section on page
P-31.
The returns in the following table include the effect of each fund's
3.00% maximum applicable front-end sales charge and each stock fund's
$7.50 redemption fee (trading fee).
EFFECTIVE MARCH 1, 2000, the following information replaces similar
information found under the heading "Fee Table" in the "Fund Summary"
section on page P-34.
GOLD Management fee 0.59%
Distribution and Service None
(12b-1) fee
Other expenses 0.98%
Total annual fund operating 1.57%
expensesB
EFFECTIVE MARCH 1, 2000, the following information supplements
footnote A found under the heading "Fee Table" in the "Fund Summary"
section on page P-36.
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 RESPECTIVE AVERAGE NET ASSETS,
EXCEED 1.54%. THIS ARRANGEMENT WILL REMAIN IN EFFECT THROUGH FEBRUARY
28, 2001.
The following information replaces the second paragraph for
"Environmental Services Portfolio" found under the heading "Principal
Investment Strategies" in the "Fund Basics" section beginning on page
P-46.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in the research, development,
manufacture or distribution of products, processes, or services
related to waste management or pollution control. These companies may
include, for example, companies involved in the transportation,
treatment, or disposal of hazardous or other wastes; transforming
waste into energy; recycling; and remedial projects such as
groundwater and underground storage tank decontamination, asbestos
cleanup, and emergency cleanup response. They may also include
companies involved in the detection, analysis, evaluation, and
treatment of both existing and potential environmental problems such
as contaminated water, air pollution, and acid rain; companies that
provide sanitation or filtration equipment or services; companies
involved in the reduction of hazardous emissions or other pollution
reduction or prevention efforts; and companies that provide design,
engineering, construction, and consulting services to companies
engaged in waste management or pollution control.
The following information replaces the second paragraph for "Banking
Portfolio" found under the heading "Principal Investment Strategies"
in the "Fund Basics" section on page P-52.
FMR normally invests at least 80% of the fund's assets in securities
of companies principally engaged in accepting deposits and making
commercial and principally non-mortgage consumer loans. These
companies may include, for example, state chartered banks, savings and
loan institutions, banks that are members of the Federal Reserve
System, and U.S. institutions whose deposits are not insured by the
federal government. In addition, these companies may offer merchant
banking, consumer and commercial finance, discount brokerage, leasing
and insurance.
The following information replaces similar information found under the
heading "Fund Management" in the "Fund Services" section on page P-69.
(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. Currently, FMR Far East provides investment research and
advice on issuers based outside the United States and may also provide
investment advisory services for each stock fund.
The following information supplements similar information found under
the heading "Fund Management" in the "Fund Services" section on page
P-69.
(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. Currently, FIJ provides
investment research and advice on issuers based outside the United
States for each stock fund.
EFFECTIVE FEBRUARY 25, 2000, the following information replaces
similar information found under the heading "Fund Management" in the
"Fund Services" section beginning on page P-69.
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.
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.
N icholas 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
199 8.
The following information replaces similar information found under the
heading "Fund Management" in the "Fund Services" section beginning on
page P-69.
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.
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.
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.
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.
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.
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. Previously, he
was an investment consultant and assistant branch manager with The
Principal Financial Securities, Inc. from 1992 to 1997.
John Porter is manager of Consumer Industries, which he has managed
since September 1999. He also manages another Fidelity fund. Mr.
Porter joined Fidelity as an analyst in 1995, after receiving his MBA
from the University of Chicago.
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.
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.
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.
Dylan Yolles is manager of Software and Computer Services, which he
has managed since September 1999. Mr. Yolles joined Fidelity in 1997
as an equity analyst, after receiving a bachelor of arts degree in
1991 and an MBA in 1997, both from Stanford University.
Jonathan Zang is manager of Chemicals, which he has managed since
September 1999. Mr. Zang joined Fidelity in 1997 as an equity analyst,
after receiving his MBA from the University of Chicago in 1997.
Previously, he was an investment officer with Hawaiian Trust Company,
in Honolulu, from 1992 to 1995.
Christian Zann is manager of Natural Gas, which he has managed since
August 1999. Mr. Zann joined Fidelity as an equity research associate
in 1996.
The following information replaces similar information found under the
heading "Fund Management" in the "Fund Services" section beginning on
page P-69.
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.
The following information replaces the fourth paragraph found under
the heading "Fund Distribution" in the "Fund Services" section on page
P-71.
Each stock fund's sales charge may be reduced if you buy directly
through Fidelity or through prototype or prototype-like retirement
plans sponsored by FMR or FMR Corp. The amount you invest, plus the
value of your account, must fall within the ranges shown below.
Purchases made with assistance or intervention from a financial
intermediary are not eligible for a sales charge reduction.
SUPPLEMENT TO THE
FIDELITY(registered trademark) SELECT PORTFOLIOS(registered trademark)
APRIL 29, 1999
STATEMENT OF ADDITIONAL INFORMATION
At a recent shareholder meeting for Fidelity Select Precious Metals
and Minerals Portfolio, shareholders approved the merger of this fund
into Fidelity Select Gold Portfolio. On or about the close of business
of the New York Stock Exchange on February 29, 2000, shareholders of
Fidelity Select Precious Metals and Minerals Portfolio will receive
the number of full and fractional shares of Fidelity Select Gold
Portfolio equal in value to the aggregate net asset value of their
shares of Fidelity Select Precious Metals and Minerals Portfolio.
Fidelity has agreed to limit the total operating expenses of Fidelity
Select Gold Portfolio to 1.54% of average net assets through February
28, 2001, after which Fidelity Select Gold Portfolio's expenses could
increase.
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 REPLACES SIMILAR INFORMATION FOUND IN THE
"PERFORMANCE" SECTION ON PAGE 24.
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 the 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 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 fund also may
calculate an effective yield by compounding the base period return
over a one-year period. In addition to the current yield, the fund may
quote yields in advertising based on any historical seven-day period.
Yields for the fund are calculated on the same basis as other money
market funds, as required by applicable 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.
THE FOLLOWING INFORMATION HAS BEEN REMOVED FROM THE "TRUSTEES AND
OFFICERS" SECTION BEGINNING ON PAGE 51.
J. GARY BURKHEAD (57), Member of the Advisory Board (1997), is Vice
Chairman and a Member of the Board of Directors of FMR Corp. (1997)
and President of Fidelity Personal Investments and Brokerage Group
(1997). Previously, Mr. Burkhead served as President of Fidelity
Management & Research Company.
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.
RICHARD A. SILVER (51), Treasurer (1997), is Treasurer of the
Fidelity funds and is an employee of FMR (1997). Before joining FMR,
Mr. Silver served as Executive Vice President, Fund Accounting &
Administration at First Data Investor Services Group, Inc.
(1996-1997). Prior to 1996, Mr. Silver was Senior Vice President and
Chief Financial Officer at The Colonial Group, Inc. Mr. Silver also
served as Chairman of the Accounting/Treasurer's Committee of the
Investment Company Institute (1987-1993).
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).
ROBERT A. DWIGHT (41),Treasurer (2000), is Treasurer of the
Fidelity funds 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), 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.
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Compensation Table
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** Ralph F. Cox Phyllis Burke Davis
FUNDA
Air TransportationB $ 0 $ 0 $ 36 $ 36
AutomotiveB $ 0 $ 0 $ 20 $ 19
BiotechnologyB $ 0 $ 0 $ 194 $ 191
Brokerage and Investment $ 0 $ 0 $ 252 $ 248
ManagementB
Business Services and $ 0 $ 0 $ 17 $ 17
OutsourcingB
ChemicalsB $ 0 $ 0 $ 17 $ 17
ComputersB $ 0 $ 0 $ 316 $ 311
Construction and HousingB $ 0 $ 0 $ 28 $ 27
Consumer IndustriesB $ 0 $ 0 $ 26 $ 26
Cyclical IndustriesB $ 0 $ 0 $ 1 $ 1
Defense and AerospaceB $ 0 $ 0 $ 20 $ 20
Developing CommunicationsB $ 0 $ 0 $ 96 $ 94
ElectronicsB $ 0 $ 0 $ 761 $ 751
EnergyB $ 0 $ 0 $ 49 $ 49
Energy ServiceB $ 0 $ 0 $ 241 $ 238
Environmental ServicesB $ 0 $ 0 $ 7 $ 7
Financial ServicesB $ 0 $ 0 $ 216 $ 213
Food and AgricultureB $ 0 $ 0 $ 80 $ 79
GoldB $ 0 $ 0 $ 73 $ 72
Health CareB,C,D $ 0 $ 0 $ 843 $ 832
Home FinanceB $ 0 $ 0 $ 487 $ 481
Industrial EquipmentB $ 0 $ 0 $ 15 $ 15
Industrial MaterialsB $ 0 $ 0 $ 6 $ 6
InsuranceB $ 0 $ 0 $ 39 $ 38
LeisureB $ 0 $ 0 $ 98 $ 96
Medical DeliveryB $ 0 $ 0 $ 55 $ 54
Medical Equipment and SystemsB+ $ 0 $ 0 $ 5 $ 5
MultimediaB $ 0 $ 0 $ 44 $ 43
Natural GasB $ 0 $ 0 $ 18 $ 18
Natural ResourcesB $ 0 $ 0 $ 2 $ 2
Paper and Forest ProductsB $ 0 $ 0 $ 6 $ 6
Precious Metals and MineralsB $ 0 $ 0 $ 53 $ 52
Regional BanksB $ 0 $ 0 $ 439 $ 433
RetailingB $ 0 $ 0 $ 91 $ 90
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Compensation Table
AGGREGATE COMPENSATION
FROM A Robert M. Gates E. Bradley Jones**** Donald J. Kirk Ned C. Lautenbach*** Peter S. Lynch**
FUNDA
Air TransportationB $ 36 $ 36 $ 36 $ 0 $ 0
AutomotiveB $ 20 $ 19 $ 20 $ 0 $ 0
BiotechnologyB $ 193 $ 192 $ 194 $ 0 $ 0
Brokerage and Investment $ 253 $ 251 $ 255 $ 0 $ 0
ManagementB
Business Services and $ 17 $ 17 $ 18 $ 0 $ 0
OutsourcingB
ChemicalsB $ 17 $ 17 $ 17 $ 0 $ 0
ComputersB $ 315 $ 313 $ 315 $ 0 $ 0
Construction and HousingB $ 28 $ 27 $ 28 $ 0 $ 0
Consumer IndustriesB $ 26 $ 26 $ 27 $ 0 $ 0
Cyclical IndustriesB $ 1 $ 1 $ 1 $ 0 $ 0
Defense and AerospaceB $ 20 $ 20 $ 20 $ 0 $ 0
Developing CommunicationsB $ 96 $ 95 $ 96 $ 0 $ 0
ElectronicsB $ 761 $ 756 $ 763 $ 0 $ 0
EnergyB $ 49 $ 49 $ 50 $ 0 $ 0
Energy ServiceB $ 242 $ 240 $ 243 $ 0 $ 0
Environmental ServicesB $ 7 $ 7 $ 7 $ 0 $ 0
Financial ServicesB $ 216 $ 214 $ 218 $ 0 $ 0
Food and AgricultureB $ 80 $ 79 $ 80 $ 0 $ 0
GoldB $ 72 $ 72 $ 73 $ 0 $ 0
Health CareB,C,D $ 842 $ 837 $ 848 $ 0 $ 0
Home FinanceB $ 488 $ 485 $ 493 $ 0 $ 0
Industrial EquipmentB $ 15 $ 15 $ 15 $ 0 $ 0
Industrial MaterialsB $ 6 $ 6 $ 6 $ 0 $ 0
InsuranceB $ 39 $ 39 $ 39 $ 0 $ 0
LeisureB $ 98 $ 97 $ 99 $ 0 $ 0
Medical DeliveryB $ 55 $ 55 $ 56 $ 0 $ 0
Medical Equipment and SystemsB+ $ 5 $ 5 $ 5 $ 0 $ 0
MultimediaB $ 44 $ 43 $ 44 $ 0 $ 0
Natural GasB $ 18 $ 18 $ 19 $ 0 $ 0
Natural ResourcesB $ 2 $ 2 $ 2 $ 0 $ 0
Paper and Forest ProductsB $ 6 $ 6 $ 6 $ 0 $ 0
Precious Metals and MineralsB $ 53 $ 53 $ 53 $ 0 $ 0
Regional BanksB $ 440 $ 437 $ 443 $ 0 $ 0
RetailingB $ 91 $ 91 $ 92 $ 0 $ 0
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Compensation Table
AGGREGATE COMPENSATION
FROM A William O. McCoy Gerald C. McDonough Marvin L. Mann Robert C. Pozen ** Thomas R. Williams
FUNDA
Air TransportationB $ 36 $ 44 $ 36 $ 0 $ 36
AutomotiveB $ 20 $ 24 $ 20 $ 0 $ 20
BiotechnologyB $ 193 $ 237 $ 193 $ 0 $ 193
Brokerage and Investment $ 253 $ 309 $ 253 $ 0 $ 253
ManagementB
Business Services and $ 17 $ 21 $ 17 $ 0 $ 17
OutsourcingB
ChemicalsB $ 17 $ 21 $ 17 $ 0 $ 17
ComputersB $ 315 $ 385 $ 315 $ 0 $ 315
Construction and HousingB $ 28 $ 34 $ 28 $ 0 $ 28
Consumer IndustriesB $ 26 $ 32 $ 26 $ 0 $ 26
Cyclical IndustriesB $ 1 $ 2 $ 1 $ 0 $ 1
Defense and AerospaceB $ 20 $ 25 $ 20 $ 0 $ 20
Developing CommunicationsB $ 96 $ 117 $ 96 $ 0 $ 96
ElectronicsB $ 761 $ 931 $ 761 $ 0 $ 761
EnergyB $ 49 $ 60 $ 49 $ 0 $ 49
Energy ServiceB $ 242 $ 296 $ 242 $ 0 $ 242
Environmental ServicesB $ 7 $ 9 $ 7 $ 0 $ 7
Financial ServicesB $ 216 $ 264 $ 216 $ 0 $ 216
Food and AgricultureB $ 80 $ 98 $ 80 $ 0 $ 80
GoldB $ 72 $ 89 $ 72 $ 0 $ 72
Health CareB,C,D $ 842 $ 1,031 $ 842 $ 0 $ 842
Home FinanceB $ 488 $ 598 $ 488 $ 0 $ 488
Industrial EquipmentB $ 15 $ 18 $ 15 $ 0 $ 15
Industrial MaterialsB $ 6 $ 7 $ 6 $ 0 $ 6
InsuranceB $ 39 $ 48 $ 39 $ 0 $ 39
LeisureB $ 98 $ 120 $ 98 $ 0 $ 98
Medical DeliveryB $ 55 $ 67 $ 55 $ 0 $ 55
Medical Equipment and SystemsB+ $ 5 $ 6 $ 5 $ 0 $ 5
MultimediaB $ 44 $ 54 $ 44 $ 0 $ 44
Natural GasB $ 18 $ 23 $ 18 $ 0 $ 18
Natural ResourcesB $ 2 $ 3 $ 2 $ 0 $ 2
Paper and Forest ProductsB $ 6 $ 8 $ 6 $ 0 $ 6
Precious Metals and MineralsB $ 53 $ 65 $ 53 $ 0 $ 53
Regional BanksB $ 440 $ 539 $ 440 $ 0 $ 440
RetailingB $ 91 $ 112 $ 91 $ 0 $ 91
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Compensation Table continued
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** Ralph F. Cox Phyllis Burke Davis
FUNDA
Software and Computer ServicesB $ 0 $ 0 $ 191 $ 188
TechnologyB $ 0 $ 0 $ 240 $ 237
TelecommunicationsB $ 0 $ 0 $ 263 $ 259
TransportationB $ 0 $ 0 $ 10 $ 10
Utilities GrowthB $ 0 $ 0 $ 138 $ 136
Money MarketB $ 0 $ 0 $ 326 $ 322
TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 223,500 $ 220,500
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Compensation Table continued
AGGREGATE COMPENSATION
FROM A Robert M. Gates E. Bradley Jones**** Donald J. Kirk Ned C. Lautenbach*** Peter S. Lynch**
FUNDA
Software and Computer ServicesB $ 191 $ 189 $ 192 $ 0 $ 0
TechnologyB $ 240 $ 239 $ 240 $ 0 $ 0
TelecommunicationsB $ 263 $ 261 $ 265 $ 0 $ 0
TransportationB $ 10 $ 10 $ 10 $ 0 $ 0
Utilities GrowthB $ 138 $ 137 $ 138 $ 0 $ 0
Money MarketB $ 326 $ 323 $ 330 $ 0 $ 0
TOTAL COMPENSATION FROM THE $ 223,500 $222,000 $ 226,500 $ 0 $ 0
FUND COMPLEX*,A
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
Compensation Table continued
AGGREGATE COMPENSATION
FROM A William O. McCoy Gerald C. McDonough Marvin L. Mann Robert C. Pozen ** Thomas R. Williams
FUNDA
Software and Computer ServicesB $ 191 $ 233 $ 191 $ 0 $ 191
TechnologyB $ 240 $ 294 $ 240 $ 0 $ 240
TelecommunicationsB $ 263 $ 322 $ 263 $ 0 $ 263
TransportationB $ 10 $ 12 $ 10 $ 0 $ 10
Utilities GrowthB $ 138 $ 169 $ 138 $ 0 $ 138
Money MarketB $ 326 $ 396 $ 326 $ 0 $ 326
TOTAL COMPENSATION FROM THE $ 223,500 $ 273,500 $ 220,500 $ 0 $ 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 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.
+ 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 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>
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.
