FIDELITY
DESTINY
PORTFOLIOS:
DESTINY I
DESTINY II
Semiannual Report
March 31, 1995
Printed on recycled paper
FIDELITY
DESTINY
PORTFOLIOS:
DESTINY I
DESTINY II
82 DEVONSHIRE STREET, BOSTON, MASSACHUSETTS 02109
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc. (FMR U.K.)
London, England
Fidelity Management & Research
(Far East) Inc. (FMR Far East)
Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
George A. Vanderheiden, VICE PRESIDENT
Arthur S. Loring, SECRETARY
Stephen P. Jonas, TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
Robert H. Morrison, MANAGER, SECURITY TRANSACTIONS
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox
Phyllis Burke Davis
Richard J. Flynn
Edward C. Johnson 3d
E. Bradley Jones
Donald J. Kirk
Edward H. Malone
Marvin L. Mann
Gerald C. McDonough
Thomas R. Williams
GENERAL DISTRIBUTION AGENT
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Chase Manhattan Bank, N.A.
New York, NY
I.BD-DESSA-595
6i
AN INTERVIEW WITH
GEORGE A. VANDERHEIDEN,
PORTFOLIO MANAGER OF
FIDELITY DESTINY PORTFOLIOS
Q. GEORGE, HOW HAVE THE FUNDS PERFORMED?
A. For the six months ended March 31, 1995, Destiny I was up 6.44% and
Destiny II was up 6.48%. The S&P returned 9.72% for the same time period.
Because of declining market breadth and the underweighting of the funds in
consumer non-durable stocks such as Coca-Cola, Disney, Gillette and
McDonalds, the portfolios trailed the market.
Q. WHAT IS A DECLINE IN MARKET BREADTH AND WHY DOES IT HURT PERFORMANCE?
A. Market breadth measures the number of stocks advancing versus those
falling. Declining market breadth occurs when more stocks are declining
than advancing. Although market breadth declined over the past six months,
it wasn't obvious to the casual observer because the major market averages
such as the Dow Jones and the S&P 500 rose. Rising interest rates and
recent financial crises caused portfolio managers to take shelter in
larger, liquid, high quality stocks and sell everything else. I call it an
iceberg market. The portion that's clearly visible bears little resemblance
to the remainder. The Destiny portfolios consist of over 200 stocks. When
the market is being led by a small number of stocks while the majority are
falling, the funds typically underperform. Fortunately, periods of
declining market breadth aren't prolonged affairs and I expect breadth to
improve this year.
Q. WHAT ARE SOME OF THE FUNDS' GROWTH POSITIONS?
A. In the technology sector the funds have important positions in personal
computer stocks including Compaq, Intel and Microsoft. Compaq is among the
lowest cost manufacturers of personal computers, and has rapidly grown
market share over the past few years. It has a debt-free balance sheet and
is selling at a modest price-earnings ratio of 10 times trailing earnings
versus the S&P 500 ratio of 16 times. While Compaq assembles the PC, Intel
makes the brains of the machine - the microprocessor. Intel is now
distributing its fifth
generation of microprocessors, the Pentium, and it should provide a boost
to earnings. As Intel is the dominant supplier of microprocessors,
Microsoft is the dominant supplier of PC software. Other important growth
positions include Fannie Mae, which I've talked about in prior reports;
Vodafone, the largest cellular phone company outside North America;
Motorola, the largest supplier of cellular equipment; and Wal-Mart.
Q. WHAT OTHER OPPORTUNITIES HAVE YOU FOUND?
A. I lately have re-acquired a large position in two auto stocks, GM and
Chrysler. The stocks have declined by 40% over the past year and are
already anticipating a decline in auto sales. If this economic cycle does
in fact turn into an extended cycle like I think it will, auto sales will
plateau at a high level and the autos should be able to generate
substantial excess cash flow over the next two years. They will use this
cash to increase dividends and repurchase stock. I also have been buying
banks having excess capital, high yields, and low price- to-earnings
ratios. The fund's large position in Shawmut National Bank has done well
due to the pending acquisition by Fleet Financial. I also added to Fleet
when the stock price was in the low 30s - due to its high dividend yield of
nearly 5%. It's low multiple and excess capital will allow it to repurchase
stock once the acquisition of Shawmut is consummated.
Q. WHY HAVE YOU INCREASED THE FUNDS' HOLDING IN BONDS?
A. I put about 12% of the funds' assets into Treasuries as yields got close
to 8% and kept buying as they went through 8%. I believe the economy is on
the cusp of a slowdown with housing turning down, auto sales soft, and
retail sales sputtering. Falling interest rates usually accompany a slowing
economy and falling interest rates lead to higher bond prices.
Q. WERE THE FUNDS HURT BY THE SHARP CORRECTION IN LATIN AMERICAN STOCKS?
A. Fortunately, the funds did not own any Latin American securities when
the Mexican crisis unfolded, as I felt the valuation levels of those
markets were too high. After the stocks suffered declines of 50% - 60%, I
became interested and initiated positions in Telmex, Telefonica de
Argentina, Telecom Argentina and Telebras, which are the dominant telephone
companies of Mexico, Argentina and Brazil. If the stock prices remain low,
I will continue to add them.
Q. SOME MARKET COMMENTATORS SAY THAT THE MARKET IS DANGEROUSLY HIGH,
SELLING AT 37 TIMES DIVIDENDS. THE ONLY OTHER TIMES THIS HAPPENED WERE IN
1973 AND 1987, AND WERE FOLLOWED BY LARGE DECLINES. HOW DO YOU FEEL ABOUT
THIS AND WHAT'S YOUR OUTLOOK?
A. I admit dividend yields are low and this is troublesome - troublesome if
you only look at dividend yields. The truth of the matter is that dividends
are paid out of earnings and earnings are very healthy. Over the past 70
years, companies have paid out 40% - 60% of their earnings in dividends,
averaging about 55% in recent years. The current dividend payout rate is
about 41% - at the bottom of the range. The other two periods when the
dividend yield was low, 1973 and 1987, payout ratios were in the 50% area
and are not comparable to current payout ratios. Instead of using excess
earnings to reward shareholders with larger dividends, corporations are
using the cash to enhance shareholder value by repurchasing their stocks.
Yes, dividend yields are low, but price earnings ratios are also low. As
long as earnings continue to grow, I'm not overly worried about the
dividend yield. Remember, it's a market of stocks, and opportunities are
always available as long as one chooses to seek them out.
PERFORMANCE UPDATE - DESTINY I
$10,000 OVER 10 YEARS
$50,248
$38,549
'95
$10,000 OVER 10 YEARS: LET'S SAY YOU INVESTED $10,000 IN DESTINY I FUND ON
MARCH 31, 1985. BY MARCH 31, 1995, THE VALUE OF YOUR INVESTMENT WOULD HAVE
GROWN TO $50,248 - A 402.48% INCREASE ON YOUR INITIAL INVESTMENT. FOR
COMPARISON LOOK AT HOW A $10,000 INVESTMENT IN THE S&P 500 (WITH DIVIDENDS
REINVESTED) DID OVER THE SAME PERIOD. IT WOULD HAVE GROWN TO $38,549 - A
285.49% INCREASE.
CUMULATIVE TOTAL RETURNS
FOR THE PERIOD ENDED MARCH 31, 1995
Past 6 One Five Ten
mont Year Years Years
hs
DESTINY I FUND 6.44 12.28 123.82 402.48
% % % %
S&P 500(registered trademark) 9.72 15.57 71.70 285.49
% % % %
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED MARCH 31, 1995
One Year Five Ten
Years Years
DESTINY I 12.28% 17.48% 17.52%
FUND
$50/MONTH
15-YEAR PLAN -46.33% 13.25% 15.98%
THE CHARTS ABOVE SHOW DESTINY I FUND'S TOTAL RETURNS WHICH INCLUDE CHANGES
IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE FUND'S
CUMULATIVE TOTAL RETURNS AND AVERAGE ANNUAL TOTAL RETURNS DO NOT INCLUDE
THE EFFECTS OF THE SEPARATE SALES CHARGES AND CUSTODIAN FEES ASSESSED
THROUGH FIDELITY SYSTEMATIC INVESTMENT PLANS (THE PLANS); AVERAGE ANNUAL
TOTAL RETURNS FOR A $50/MONTH 15-YEAR PLAN INCLUDE THE EFFECTS OF THE
SEPARATE SALES CHARGES AND CUSTODIAN FEES ASSESSED THROUGH DESTINY I'S
$50/MONTH 15-YEAR PLAN. AS SHARES OF THE FUNDS MAY BE ACQUIRED ONLY THROUGH
THE PLANS, INVESTORS SHOULD CONSULT THE PLANS' PROSPECTUS FOR MORE COMPLETE
INFORMATION ON THE IMPACT OF THE SEPARATE CHARGES AND FEES APPLICABLE TO
EACH PLAN. THE RATE (%) OF DEDUCTIONS DECREASES PROPORTIONATELY AS PLAN
SIZES INCREASE. FIGURES FOR THE S&P 500, AN UNMANAGED INDEX OF COMMON STOCK
PRICES, INCLUDE REINVESTMENT OF DIVIDENDS. THE S&P 500 FIGURE FOR ONE YEAR
IS PUBLISHED BY S&P. THE S&P 500 IS A REGISTERED TRADEMARK OF STANDARD &
POOR'S CORPORATION.
ALL PERFORMANCE NUMBERS ARE HISTORICAL; THE FUND'S SHARE PRICE AND RETURN
WILL VARY AND YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES.
PERFORMANCE UPDATE - DESTINY II
$10,000 OVER LIFE OF FUND
$61,009
$32,210
'95
$10,000 OVER LIFE OF FUND: LET'S SAY YOU INVESTED $10,000 IN DESTINY II
FUND ON DECEMBER 30, 1985, WHEN THE FUND STARTED. BY MARCH 31, 1995, THE
VALUE OF YOUR INVESTMENT WOULD HAVE GROWN TO $61,009 - A 510.09% INCREASE
ON YOUR INITIAL INVESTMENT. FOR COMPARISON LOOK AT HOW A $10,000 INVESTMENT
IN THE S&P 500 (WITH DIVIDENDS REINVESTED) DID OVER THE SAME PERIOD. IT
WOULD HAVE GROWN TO $32,210 - A 222.10% INCREASE.
CUMULATIVE TOTAL RETURNS
FOR THE PERIOD ENDED MARCH 31, 1995
Past 6 One Five Life of
mont Year Years Fund*
hs
DESTINY II FUND 6.48 12.09 131.61 510.09
% % % %
S&P 500(registered trademark) 9.72 15.57 71.70 222.10
% % % %
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED MARCH 31, 1995
Life of
One Year Five Fund/Pla
Years n*
DESTINY II 12.09% 18.29% 21.57%
FUND
$50/MONTH
15-YEAR PLAN -46.42% 14.02% 19.81%
THE CHARTS ABOVE SHOW DESTINY II FUND'S TOTAL RETURNS WHICH INCLUDE CHANGES
IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS. THE FUND'S
CUMULATIVE TOTAL RETURNS AND AVERAGE ANNUAL TOTAL RETURNS DO NOT INCLUDE
THE EFFECTS OF THE SEPARATE SALES CHARGES AND CUSTODIAN FEES ASSESSED
THROUGH FIDELITY SYSTEMATIC INVESTMENT PLANS (THE PLANS); AVERAGE ANNUAL
TOTAL RETURNS FOR A $50/MONTH 15-YEAR PLAN INCLUDE THE EFFECTS OF THE
SEPARATE SALES CHARGES AND CUSTODIAN FEES ASSESSED THROUGH DESTINY II'S
$50/MONTH 15-YEAR PLAN. AS SHARES OF THE FUNDS MAY BE ACQUIRED ONLY THROUGH
THE PLANS, INVESTORS SHOULD CONSULT THE PLANS' PROSPECTUS FOR MORE COMPLETE
INFORMATION ON THE IMPACT OF THE SEPARATE CHARGES AND FEES APPLICABLE TO
EACH PLAN. THE RATE (%) OF DEDUCTIONS DECREASES PROPORTIONATELY AS PLAN
SIZES INCREASE. FIGURES FOR THE S&P 500, AN UNMANAGED INDEX OF COMMON STOCK
PRICES, INCLUDE REINVESTMENT OF DIVIDENDS. THE S&P 500 FIGURE FOR ONE YEAR
IS PUBLISHED BY S&P. THE S&P 500 IS A REGISTERED TRADEMARK OF STANDARD &
POOR'S CORPORATION.
* THE LIFE OF FUND AND LIFE OF PLAN FIGURES ARE FROM COMMENCEMENT OF
OPERATIONS, DECEMBER 30, 1985, TO THE PERIOD ENDED MARCH 31, 1995.
ALL PERFORMANCE NUMBERS ARE HISTORICAL; THE FUND'S SHARE PRICE AND RETURN
WILL VARY AND YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES.
TOP TEN EQUITY HOLDINGS - DESTINY I
AS OF MARCH 31, 1995 AS OF SEPTEMBER 30, 1994
Federal National Mortgage Association
Philip Morris Companies, Inc.
Chrysler Corp.
Intel Corp.
Compaq Computer Corp.
General Motors Corp.
International Business Machines Corp.
Vodafone Group PLC sponsored ADR
Fleet Financial Group, Inc.
Shawmut National Corp.
Federal National Mortgage Association
Philip Morris Companies, Inc.
Intel Corp.
Compaq Computer Corp.
Chrysler Corp.
International Business Machines Corp.
Motorola, Inc.
Vodafone Group PLC sponsored ADR
Pfizer, Inc.
British Petroleum PLC ADR
TOP TEN EQUITY HOLDINGS - DESTINY II
AS OF MARCH 31, 1995 AS OF SEPTEMBER 30, 1994
Federal National Mortgage Association
Philip Morris Companies, Inc.
Chrysler Corp.
Intel Corp.
Compaq Computer Corp.
General Motors Corp.
International Business Machines Corp.
Vodafone Group PLC sponsored ADR
Fleet Financial Group, Inc.
Shawmut National Corp.
Federal National Mortgage Association
Philip Morris Companies, Inc.
Intel Corp.
Compaq Computer Corp.
Chrysler Corp.
International Business Machines Corp.
Vodafone Group PLC sponsored ADR
Motorola, Inc.
Pfizer, Inc.
British Petroleum PLC ADR
TOP FIVE MARKET SECTORS - DESTINY I
AS OF MARCH 31, 1995 AS OF SEPTEMBER 30, 1994
Finance 17.7%
Technology 14.0%
Energy 8.9%
Utilities 8.3%
Durables 7.4%
Finance 18.7%
Technology 14.3%
Utilities 8.2%
Energy 8.2%
Nondurables 6.8%
TOP FIVE MARKET SECTORS - DESTINY II
AS OF MARCH 31, 1995 AS OF SEPTEMBER 30, 1994
Finance 17.4%
Technology 13.3%
Energy 8.2%
Utilities 8.0%
Durables 7.2%
Finance 18.4%
Technology 13.4%
Utilities 8.2%
Energy 7.4%
Nondurables 6.7%
FIDELITY DESTINY PORTFOLIOS: DESTINY I
INVESTMENTS/MARCH 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF
INVESTMENT IN SECURITIES)
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - 82.5%
AEROSPACE & DEFENSE - 1.6%
AEROSPACE & DEFENSE - 0.5%
Boeing Co. 309,800 $ 16,690,475
DEFENSE ELECTRONICS - 1.1%
Loral Corp. 222,800 9,469,000
Raytheon Co. 380,500 27,728,938
37,197,938
TOTAL AEROSPACE & DEFENSE 53,888,413
BASIC INDUSTRIES - 1.7%
CHEMICALS & PLASTICS - 0.1%
Raychem Corp. 60,300 2,449,688
IRON & STEEL - 0.1%
Nucor Corp. 41,200 2,317,500
METALS & MINING - 0.9%
Alcan Aluminium Ltd. 1 27
Aluminum Co. of America 27,800 1,150,225
Reynolds Metals Co. 583,200 28,722,600
29,872,852
PACKAGING & CONTAINERS - 0.5%
Owens-Illinois, Inc. (a) 1,620,000 18,225,000
PAPER & FOREST PRODUCTS - 0.1%
Kimberly-Clark Corp. 52,800 2,745,600
Stone Consolidated Corp. (a) 94,300 1,179,382
3,924,982
TOTAL BASIC INDUSTRIES 56,790,022
CONSTRUCTION & REAL ESTATE - 0.7%
BUILDING MATERIALS - 0.5%
Armstrong World Industries, Inc. 122,100 5,570,813
Masco Corp. 164,500 4,544,313
Tecumseh Products Co. Class A 175,400 8,682,300
18,797,426
CONSTRUCTION - 0.0%
Kaufman & Broad Home Corp. 33,900 402,563
ENGINEERING - 0.2%
Fluor Corp. 121,300 5,852,725
REAL ESTATE INVESTMENT TRUSTS - 0.0%
Crown American Realty Trust (SBI) 54,000 702,000
TOTAL CONSTRUCTION & REAL ESTATE 25,754,714
DURABLES - 7.4%
AUTOS, TIRES, & ACCESSORIES - 6.9%
Automotive Industries Holding, Inc. (a) 89,000 1,958,000
Autozone, Inc. (a) 11,100 $ 276,113
Chrysler Corp. 2,566,300 107,463,813
Dana Corp. 242,100 6,173,550
Discount Auto Parts, Inc. (a) 414,400 9,945,600
Eaton Corp. 175,000 9,493,750
General Motors Corp. 2,075,480 91,839,990
Magna International, Inc. Class A 244,100 9,289,494
236,440,310
CONSUMER ELECTRONICS - 0.2%
Black & Decker Corp. 214,400 6,190,800
TEXTILES & APPAREL - 0.3%
Burlington Industries, Inc. (a) 832,800 9,473,100
Fruit of the Loom, Inc. Class A (a) 68,000 1,785,000
11,258,100
TOTAL DURABLES 253,889,210
ENERGY - 8.9%
ENERGY SERVICES - 1.4%
Baker Hughes, Inc. 569,300 11,599,488
Halliburton Co. 79,600 2,895,450
McDermott International, Inc. 28,800 788,400
Schlumberger Ltd. 536,300 31,976,888
47,260,226
OIL & GAS - 7.5%
Amerada Hess Corp. 354,400 17,498,500
Amoco Corp. 188,600 11,999,675
Apache Corp. 141,200 3,847,700
Atlantic Richfield Co. 110,800 12,742,000
British Petroleum PLC ADR 580,498 48,689,270
Burlington Resources, Inc. 766,800 31,247,100
Canada Occidental Petroleum Ltd. 118,300 3,107,039
Elf Aquitaine sponsored ADR 109,100 4,227,625
Kerr-McGee Corp. 389,400 19,859,400
Louisiana Land & Exploration Co. 563,600 21,064,550
Mobil Corp. 64,200 5,946,525
Murphy Oil Corp. 92,100 3,971,813
Noble Affiliates, Inc. 143,100 3,917,363
Santa Fe Energy Resources, Inc. 35,300 339,763
Texaco, Inc. 504,600 33,555,900
Tosco Corp. 539,000 16,709,000
Unocal Corp. 709,645 20,402,294
YPF Sociedad Anonima sponsored ADR
representing Class D shares 87,500 1,662,500
260,788,017
TOTAL ENERGY 308,048,243
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
FINANCE - 17.7%
BANKS - 2.4%
AmSouth Bancorporation 38,900 $ 1,225,350
Bank of Boston Corp. 572,282 17,025,390
Comerica, Inc. 255,600 7,029,000
Shawmut National Corp. 2,024,729 53,402,227
State Street Boston Corp. 185,500 5,912,813
Union Planters Corp. 5 116
84,594,896
CREDIT & OTHER FINANCE - 3.8%
Barnett Banks, Inc. 264,900 12,052,950
First Union Corp. 622,405 26,996,817
Fleet Financial Group, Inc. 1,696,163 54,913,277
Keycorp 533,481 15,070,838
NationsBank Corp. 421,977 21,415,333
130,449,215
FEDERAL SPONSORED CREDIT - 6.3%
Federal Home Loan Mortgage Corporation 649,200 39,276,600
Federal National Mortgage Association 2,194,800 178,601,850
217,878,450
INSURANCE - 3.0%
Allstate Corp. 882,100 25,360,375
American International Group, Inc. 38,100 3,971,925
General Re Corp. 164,400 21,700,800
John Alden Financial Corp. 447,300 8,219,138
MBIA, Inc. 39,600 2,489,850
Providian Corp. 264,200 9,280,025
Torchmark Corp. 192,800 8,001,200
Travelers, Inc. (The) 59,233 2,287,875
UNUM Corp. 504,900 22,846,725
104,157,913
SAVINGS & LOANS - 0.9%
Ahmanson (H.F.) & Co. 802,700 14,448,600
Golden West Financial Corp. 465,500 17,805,375
32,253,975
SECURITIES INDUSTRY - 1.3%
Lehman Brothers Holdings, Inc. 239,800 4,316,400
Merrill Lynch & Co., Inc. 472,901 20,157,405
Morgan Stanley Group, Inc. 177,500 11,959,063
Salomon, Inc. 97,500 3,302,813
United Asset Management Corp. 94,200 3,614,925
43,350,606
TOTAL FINANCE 612,685,055
HEALTH - 2.8%
DRUGS & PHARMACEUTICALS - 1.6%
Allergan, Inc. 156,400 4,613,800
Biogen, Inc. (a) 216,800 8,617,800
Carter-Wallace, Inc. 269,600 $ 3,201,500
Elan Corp. PLC ADR (a) 261,200 9,729,700
Pfizer, Inc. 110,800 9,501,100
Schering-Plough Corp. 255,400 18,995,375
54,659,275
MEDICAL EQUIPMENT & SUPPLIES - 0.3%
Baxter International, Inc. 392,000 12,838,000
MEDICAL FACILITIES MANAGEMENT - 0.9%
Columbia/HCA Healthcare Corp. 708,625 30,470,875
TOTAL HEALTH 97,968,150
HOLDING COMPANIES - 0.1%
Cinergy Corp. 192,825 4,796,522
INDUSTRIAL MACHINERY & EQUIPMENT - 2.7%
ELECTRICAL EQUIPMENT - 0.3%
General Electric Co. 219,500 11,880,438
INDUSTRIAL MACHINERY & EQUIPMENT - 2.3%
Caterpillar, Inc. 557,400 31,005,375
Deere & Co. 579,800 47,108,750
78,114,125
POLLUTION CONTROL - 0.1%
Browning-Ferris Industries, Inc. 81,600 2,774,400
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 92,768,963
MEDIA & LEISURE - 2.5%
BROADCASTING - 0.8%
British Sky Broadcasting Group ADR (a) 53,000 1,305,125
People's Choice TV Corp. (a) 35,100 938,925
Tele-Communications, Inc. Class A (a) 1,109,800 23,305,800
Viacom, Inc. Class B (non-vtg.) (a) 35,600 1,593,100
27,142,950
ENTERTAINMENT - 0.3%
Royal Caribbean Cruises Ltd. 351,200 9,175,100
LEISURE DURABLES & TOYS - 0.3%
Fleetwood Enterprises, Inc. 106,100 2,506,613
Outboard Marine Corp. 419,200 8,803,200
11,309,813
LODGING & GAMING - 0.1%
Circus Circus Enterprises, Inc. 105,600 3,405,600
PUBLISHING - 0.2%
American Media, Inc. Class A 158,000 1,125,750
Gannett Co., Inc. 103,200 5,508,300
6,634,050
RESTAURANTS - 0.8%
Au Bon Pain, Inc. Class A (a) 89,600 1,220,800
Bertucci's, Inc. (a) 158,000 1,362,750
Boston Chicken, Inc. (a) 116,500 1,893,125
Brinker International, Inc. (a) 164,100 2,728,163
Bugaboo Creek Steak House, Inc. (a) 3,800 47,500
Cracker Barrel Old Country Store, Inc. 77,200 1,727,350
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
MEDIA & LEISURE - CONTINUED
RESTAURANTS - CONTINUED
McDonald's Corp. 476,400 $ 16,257,150
Outback Steakhouse, Inc. 52,600 1,334,725
26,571,563
TOTAL MEDIA & LEISURE 84,239,076
NONDURABLES - 5.0%
BEVERAGES - 0.0%
PepsiCo, Inc. 41,300 1,610,700
HOUSEHOLD PRODUCTS - 0.2%
Tambrands, Inc. 150,200 6,702,675
TOBACCO - 4.8%
Philip Morris Companies, Inc. 1,817,600 118,598,400
RJR Nabisco Holdings Corp. 8,068,990 47,405,316
166,003,716
TOTAL NONDURABLES 174,317,091
PRECIOUS METALS - 0.5%
Homestake Mining Co. 346,500 6,410,250
Santa Fe Pacific Gold Corp. 774,575 9,779,009
16,189,259
RETAIL & WHOLESALE - 5.8%
APPAREL STORES - 0.2%
TJX Companies, Inc. 473,125 6,209,766
GENERAL MERCHANDISE STORES - 2.9%
Federated Department Stores, Inc. (Del.) (a) 1,563,173 34,585,203
Sears, Roebuck & Co. 481,600 25,705,400
Value City Department Stores, Inc. (a) 363,100 2,950,188
Wal-Mart Stores, Inc. 1,436,600 36,633,300
99,874,091
GROCERY STORES - 0.2%
Food Lion, Inc. Class A 513,800 2,890,125
Stop & Shop Companies, Inc. (a) 137,000 3,288,000
6,178,125
RETAIL & WHOLESALE, MISCELLANEOUS - 2.5%
Best Buy Co., Inc. (a) 595,800 12,884,175
Body Shop International PLC 83,000 234,249
Circuit City Stores, Inc. 604,800 15,951,600
Good Guys, Inc. (a) 211,500 2,485,125
Home Depot, Inc. (The) 437,900 19,377,075
Officemax, Inc. (a) 219,300 5,619,563
Office Depot, Inc. (a) 152,700 3,722,063
Rex Stores Corp. (a) 149,000 2,086,000
Staples, Inc. (a) 54,450 1,436,119
Toys "R" Us, Inc. (a) 929,700 23,823,563
87,619,532
TOTAL RETAIL & WHOLESALE 199,881,514
SERVICES - 0.2%
Borg Warner Securities Corp. (a) 140,800 $ 1,108,800
Pinkertons, Inc. (a) 122,800 1,995,500
Supercuts, Inc. (a) 149,400 1,381,950
Zebra Technologies Corp. Class A (a) 40,100 1,644,100
6,130,350
TECHNOLOGY - 14.0%
COMMUNICATIONS EQUIPMENT - 0.3%
Cabletron Systems, Inc. (a) 179,400 8,050,575
Cisco Systems, Inc. (a) 47,100 1,795,688
9,846,263
COMPUTER SERVICES & SOFTWARE - 0.7%
MicroAge, Inc. (a) 21,300 205,013
Microsoft Corp. (a) 279,500 19,879,438
SHL Systemhouse, Inc. (a) 447,500 2,685,000
22,769,451
COMPUTERS & OFFICE EQUIPMENT - 7.3%
Bay Networks, Inc. (a) 255,700 9,428,938
Compaq Computer Corp. (a) 2,692,400 92,887,800
Digital Equipment Corp. (a) 291,000 11,021,625
Hewlett-Packard Co. 230,500 27,746,438
International Business Machines Corp. 894,800 73,261,750
SCI Systems, Inc. (a) 785,500 14,679,031
Silicon Graphics, Inc. (a) 129,000 4,579,500
Sun Microsystems, Inc. (a) 299,900 10,421,525
Tandem Computers, Inc. (a) 117,100 1,815,050
Tech Data Corp. (a) 564,100 5,782,025
251,623,682
ELECTRONIC INSTRUMENTS - 0.2%
Kulicke & Soffa Industries, Inc. (a) 295,400 8,086,575
ELECTRONICS - 5.5%
Intel Corp. 1,200,300 101,875,463
Methode Electronics, Inc.:
Class A (c) 1,518,200 23,911,650
Class B 30,000 495,000
Molex, Inc. 88,375 2,982,656
Motorola, Inc. 650,400 35,528,100
Solectron Corp. (a) 937,800 27,430,650
192,223,519
TOTAL TECHNOLOGY 484,549,490
TRANSPORTATION - 2.6%
AIR TRANSPORTATION - 0.0%
AMR Corp. (a) 27,300 1,767,675
RAILROADS - 2.6%
Burlington Northern, Inc. 319,400 18,964,375
CSX Corp. 476,700 37,540,125
Canadian Pacific Ltd. Ord. 766,700 11,438,175
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
TRANSPORTATION - CONTINUED
RAILROADS - CONTINUED
Southern Pacific Rail Corp. (a) 1,198,600 $ 20,975,500
88,918,175
TOTAL TRANSPORTATION 90,685,850
UTILITIES - 8.3%
CELLULAR - 2.4%
Airtouch Communications (a) 489,700 13,344,325
Vodafone Group PLC sponsored ADR 2,062,100 68,307,063
81,651,388
ELECTRIC UTILITY - 2.5%
American Electric Power Co., Inc. 217,200 6,896,100
Baltimore Gas & Electric Co. 166,800 3,940,650
Carolina Power & Light Co. 189,700 5,145,613
Central & South West Corp. 201,400 4,883,950
Consolidated Edison Co. of New York, Inc. 246,500 6,717,125
Detroit Edison Company 120,800 3,306,900
Dominion Resources, Inc. (Va.) 146,600 5,277,600
Duke Power Co. 116,900 4,500,650
Niagara Mohawk Power Corp. 168,900 2,322,375
Ohio Edison Co. 243,300 4,866,000
Pacific Gas & Electric Co. 145,600 3,621,800
PacifiCorp. 347,300 6,728,938
Peco Energy Co. 243,300 6,112,913
Public Service Enterprise Group, Inc. 168,000 4,599,000
SCEcorp 300,500 4,695,313
Southern Co. 293,300 5,975,988
Texas Utilities Co. 103,700 3,292,475
Unicom Corp. 153,700 3,650,375
86,533,765
GAS - 0.1%
ENSERCH Corp. 131,800 1,960,525
TELEPHONE SERVICES - 3.3%
Ameritech Corp. 644,000 26,565,000
Bell Atlantic Corp. 309,100 16,305,025
BellSouth Corp. 356,700 21,223,650
NYNEX Corp. 211,300 8,372,763
SBC Communications, Inc. 867,100 36,526,486
Telecom Argentina sponsored ADR
representing Class B shares 13,000 562,250
Telebras PN (Pfd. Reg.) 71,527,400 1,923,372
Telefonica de Argentina sponsored ADR 45,300 1,092,863
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 91,300 $ 2,602,050
115,173,459
TOTAL UTILITIES 285,319,137
TOTAL COMMON STOCKS
(Cost $2,347,193,731) 2,847,901,059
MOODY'S
RATINGS PRINCIPAL
(UNAUDITED) AMOUNT (B)
CONVERTIBLE BONDS - 0.0%
BASIC INDUSTRIES - 0.0%
PAPER & FOREST PRODUCTS - 0.0%
Stone Consolidated Corp. 8%,
12/31/03 (Cost $1,195,615) - CAD 1,590,000 1,420,404
U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS - 12.1%
U.S. TREASURY OBLIGATIONS - 12.0%
Stripped Coupon (principal payment):
0%, 2/15/19 Aaa 30,000,000 4,885,200
0%, 8/15/19 Aaa 240,000,000 37,888,800
8 1/8%, 8/15/19 Aaa 350,000,000 370,506,500
TOTAL U.S. TREASURY OBLIGATIONS 413,280,500
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.1%
Financing Corp. Stripped coupon
0%, 9/26/19 Aaa 25,000,000 3,737,500
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $406,534,008) 417,018,000
MATURITY
AMOUNT
REPURCHASE AGREEMENTS - 5.4%
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 6.20%, dated
3/31/95 due 4/3/95 $ 186,967,550 186,871,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $2,941,794,354) $ 3,453,210,463
CURRENCY ABBREVIATIONS:
CAD - Canadian dollar
LEGEND:
(a) Non-income producing
(b) Principal amount is stated in United States dollars unless otherwise
noted.
(c) Affiliated company (see Note 5 of Notes to Financial Statements).
OTHER INFORMATION:
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S S&P
RATINGS RATINGS
Aaa, Aa, A 12.1% AAA, AA, A 12.1%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.0%.
INCOME TAX INFORMATION:
At March 31, 1995, the aggregate cost of investment securities for income
tax purposes was $2,942,616,322. Net unrealized appreciation aggregated
$510,594,141, of which $595,543,683 related to appreciated investment
securities and $84,949,542 related to depreciated investment securities.
Statement of Assets and Liabilities
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
March 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value (including repurchase agreements of $186,871,000) (cost $ 3,453,210,463
$2,941,794,354) - See accompanying schedule
Cash 797
Receivable for investments sold 44,037,748
Receivable for fund shares sold 244,234
Dividends receivable 8,382,824
Interest receivable 3,479,218
Other receivables 289,898
Total assets 3,509,645,182
LIABILITIES
Payable for investments purchased $ 80,606,335
Payable for fund shares redeemed 1,200,983
Accrued management fee 1,855,875
Other payables and accrued expenses 167,397
Total liabilities 83,830,590
NET ASSETS $ 3,425,814,592
Net Assets consist of:
Paid in capital $ 2,850,382,287
Undistributed net investment income 21,851,230
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 42,164,442
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies 511,416,633
NET ASSETS, for 218,435,336 shares outstanding $ 3,425,814,592
NET ASSET VALUE, offering price and redemption price per share ($3,425,814,592 (divided by) 218,435,336 shares) $15.68
</TABLE>
Statement of Operations
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended March 31, 1995 (Unaudited)
INVESTMENT INCOME $ 34,269,533
Dividends (including $91,950 received from affiliated issuers)
Interest 19,376,060
Total income 53,645,593
EXPENSES
Management fee $ 7,901,607
Basic fee
Performance fee 2,859,556
Transfer agent fees 71,513
Accounting fees and expenses 382,254
Non-interested trustees' compensation 46,597
Custodian fees and expenses 22,722
Registration fees 6,378
Audit 12,073
Total expenses 11,302,700
Net investment income 42,342,893
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain (loss) of $385,207 on sales of investments in
affiliated 63,354,909
issuers)
Foreign currency transactions 21,241 63,376,150
Change in net unrealized appreciation (depreciation) on:
Investment securities 101,222,980
Assets and liabilities in foreign (26,511) 101,196,469
currencies
Net gain (loss) 164,572,619
Net increase (decrease) in net assets resulting from operations $ 206,915,512
</TABLE>
Statement of Changes in Net Assets
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED SEPTEMBER 30,
MARCH 31, 1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 42,342,893 $ 54,130,953
Net investment income
Net realized gain (loss) 63,376,150 513,831,921
Change in net unrealized appreciation (depreciation) 101,196,469 (203,630,214)
Net increase (decrease) in net assets resulting from operations 206,915,512 364,332,660
Distributions to shareholders: (62,951,391) (19,385,874)
From net investment income
From net realized gain (468,451,357) (183,280,710)
Total distributions (531,402,748) (202,666,584)
Share transactions 68,959,958 138,945,156
Net proceeds from sales of shares
Reinvestment of distributions 502,563,606 193,082,050
Cost of shares redeemed (94,462,127) (193,677,416)
Net increase (decrease) in net assets resulting from share transactions 477,061,437 138,349,790
Total increase (decrease) in net assets 152,574,201 300,015,866
NET ASSETS
Beginning of period 3,273,240,391 2,973,224,525
End of period (including undistributed net investment income of $21,851,230 and $43,805,352, $ 3,425,814,592 $ 3,273,240,391
respectively)
OTHER INFORMATION
Shares
Sold 4,339,540 7,991,172
Issued in reinvestment of distributions 35,292,391 11,701,953
Redeemed (6,093,193) (11,149,412)
Net increase (decrease) 33,538,738 8,543,713
</TABLE>
Financial Highlights
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED THREE MONTHS YEARS ENDED JUNE 30,
ENDED SEPTEMBER 30, ENDED
MARCH 31, 1995 SEPTEMBER 30,
(UNAUDITED) 1994 1993 1993 1992 1991 1990
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 17.70 $ 16.86 $ 17.22 $ 16.54 $ 15.23 $ 14.24 $ 14.03
Income from Investment Operations
Net investment income .20 .30 .04 .26 .31 .33 .46C
Net realized and unrealized gain .65 1.69 .75 3.16 2.55 1.25 1.18
(loss)
Total from investment operations .85 1.99 .79 3.42 2.86 1.58 1.64
Less Distributions (.34) (.11) (.14) (.30) (.49) (.10) (.38)
From net investment income
From net realized gain (2.53) (1.04) (1.01) (2.44) (1.06) (.49) (1.05)
Total distributions (2.87) (1.15) (1.15) (2.74) (1.55) (.59) (1.43)
Net asset value, end of period $ 15.68 $ 17.70 $ 16.86 $ 17.22 $ 16.54 $ 15.23 $ 14.24
TOTAL RETURN B 6.44% 12.30% 4.77% 23.90% 20.18% 11.93% 12.17%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in millions) $ 3,426 $ 3,273 $ 2,973 $ 2,869 $ 2,373 $ 2,023 $ 1,832
Ratio of expenses to average net .69%A .70% .65% .66% .61% .50% .53%
assets A
Ratio of net investment income to 2.59%A 1.69% 1.11%A 1.83% 2.00% 2.45% 3.37%C
average net assets
Portfolio turnover rate 62%A 77% 82%A 75% 75% 84% 75%
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND OF $.06 AND $.03
PER SHARE, RESPECTIVELY.
FIDELITY DESTINY PORTFOLIOS: DESTINY II
INVESTMENTS/MARCH 31, 1995 (UNAUDITED)
(SHOWING PERCENTAGE OF TOTAL VALUE OF
INVESTMENT IN SECURITIES)
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - 79.9%
AEROSPACE & DEFENSE - 1.6%
AEROSPACE & DEFENSE - 0.5%
Boeing Co. 147,000 $ 7,919,562
DEFENSE ELECTRONICS - 1.1%
Loral Corp. 105,700 4,492,250
Raytheon Co. 179,200 13,059,200
17,551,450
TOTAL AEROSPACE & DEFENSE 25,471,012
BASIC INDUSTRIES - 1.6%
CHEMICALS & PLASTICS - 0.1%
Raychem Corp. 28,500 1,157,813
IRON & STEEL - 0.1%
Nucor Corp. 19,100 1,074,375
METALS & MINING - 0.8%
Alcan Aluminium Ltd. 1 27
Aluminum Co. of America 12,800 529,600
Reynolds Metals Co. 268,200 13,208,850
13,738,477
PACKAGING & CONTAINERS - 0.5%
Owens-Illinois, Inc. (a) 749,900 8,436,375
PAPER & FOREST PRODUCTS - 0.1%
Kimberly-Clark Corp. 25,100 1,305,200
Stone Consolidated Corp. (a) 44,800 560,300
1,865,500
TOTAL BASIC INDUSTRIES 26,272,540
CONSTRUCTION & REAL ESTATE - 0.7%
BUILDING MATERIALS - 0.5%
Armstrong World Industries, Inc. 58,000 2,646,250
Masco Corp. 78,000 2,154,750
Tecumseh Products Co. Class A 83,100 4,113,450
8,914,450
CONSTRUCTION - 0.0%
Kaufman & Broad Home Corp. 16,100 191,188
ENGINEERING - 0.2%
Fluor Corp. 62,200 3,001,150
TOTAL CONSTRUCTION & REAL ESTATE 12,106,788
DURABLES - 7.2%
AUTOS, TIRES, & ACCESSORIES - 6.7%
Automotive Industries Holding, Inc. (a) 42,100 926,200
Autozone, Inc. (a) 4,900 121,888
Chrysler Corp. 1,218,000 51,003,750
Dana Corp. 114,900 2,929,950
Discount Auto Parts, Inc. (a) 162,700 3,904,800
Eaton Corp. 83,000 4,502,750
General Motors Corp. 985,224 $ 43,596,162
Magna International, Inc. Class A 115,800 4,406,896
111,392,396
CONSUMER ELECTRONICS - 0.2%
Black & Decker Corp. 101,700 2,936,588
TEXTILES & APPAREL - 0.3%
Burlington Industries, Inc. (a) 366,400 4,167,800
Fruit of the Loom, Inc. Class A (a) 32,300 847,875
5,015,675
TOTAL DURABLES 119,344,659
ENERGY - 8.2%
ENERGY SERVICES - 1.3%
Baker Hughes, Inc. 269,200 5,484,950
Halliburton Co. 36,900 1,342,238
Schlumberger Ltd. 254,600 15,180,525
22,007,713
OIL & GAS - 6.9%
Amerada Hess Corp. 168,500 8,319,688
Amoco Corp. 87,300 5,554,463
Apache Corp. 63,500 1,730,375
Atlantic Richfield Co. 52,600 6,049,000
British Petroleum PLC ADR 256,564 21,519,306
Burlington Resources, Inc. 356,700 14,535,525
Canada Occidental Petroleum Ltd. 56,200 1,476,041
Elf Aquitaine sponsored ADR 51,800 2,007,250
Kerr-McGee Corp. 95,300 4,860,300
Louisiana Land & Exploration Co. 169,900 6,350,013
Mobil Corp. 29,700 2,750,963
Murphy Oil Corp. 48,200 2,078,625
Noble Affiliates, Inc. 66,300 1,814,963
Santa Fe Energy Resources, Inc. 16,800 161,700
Texaco, Inc. 239,500 15,926,750
Tosco Corp. 248,000 7,688,000
Unocal Corp. 319,309 9,180,134
YPF Sociedad Anonima sponsored ADR
representing Class D shares 41,500 788,500
112,791,596
TOTAL ENERGY 134,799,309
FINANCE - 17.4%
BANKS - 2.4%
AmSouth Bancorporation 18,400 579,600
Bank of Boston Corp. 269,003 8,002,839
Comerica, Inc. 115,100 3,165,250
Shawmut National Corp. 944,822 24,919,680
State Street Boston Corp. 87,300 2,782,688
Union Planters Corp. 2 46
39,450,103
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - 3.9%
Barnett Banks, Inc. 131,500 $ 5,983,250
First Union Corp. 294,155 12,758,973
Fleet Financial Group, Inc. 887,516 28,733,331
Keycorp 247,509 6,992,129
NationsBank Corp. 200,185 10,159,389
64,627,072
FEDERAL SPONSORED CREDIT - 6.1%
Federal Home Loan Mortgage Corporation 308,100 18,640,050
Federal National Mortgage Association 1,006,400 81,895,800
100,535,850
INSURANCE - 2.9%
Allstate Corp. 379,400 10,907,750
American International Group, Inc. 15,800 1,647,150
General Re Corp. 76,100 10,045,200
John Alden Financial Corp. 212,400 3,902,850
MBIA, Inc. 18,800 1,182,050
Providian Corp. 125,300 4,401,163
Torchmark Corp. 91,100 3,780,650
Travelers, Inc. (The) 24,700 954,038
UNUM Corp. 239,700 10,846,425
47,667,276
SAVINGS & LOANS - 0.9%
Ahmanson (H.F.) & Co. 359,600 6,472,800
Golden West Financial Corp. 206,900 7,913,925
14,386,725
SECURITIES INDUSTRY - 1.2%
Lehman Brothers Holdings, Inc. 107,700 1,938,600
Merrill Lynch & Co., Inc. 224,499 9,569,270
Morgan Stanley Group, Inc. 83,500 5,625,813
Salomon, Inc. 46,300 1,568,413
United Asset Management Corp. 47,200 1,811,300
20,513,396
TOTAL FINANCE 287,180,422
HEALTH - 2.9%
DRUGS & PHARMACEUTICALS - 1.6%
Allergan, Inc. 89,900 2,652,050
Biogen, Inc. (a) 102,700 4,082,325
Carter-Wallace, Inc. 123,600 1,467,750
Elan Corp. PLC ADR (a) 119,700 4,458,825
Pfizer, Inc. 52,600 4,510,450
Schering-Plough Corp. 121,300 9,021,688
26,193,088
MEDICAL EQUIPMENT & SUPPLIES - 0.4%
Baxter International, Inc. 184,100 $ 6,029,275
MEDICAL FACILITIES MANAGEMENT - 0.9%
Columbia/HCA Healthcare Corp. 335,540 14,428,220
TOTAL HEALTH 46,650,583
HOLDING COMPANIES - 0.1%
Cinergy Corp. 91,559 2,277,530
INDUSTRIAL MACHINERY & EQUIPMENT - 2.6%
ELECTRICAL EQUIPMENT - 0.3%
General Electric Co. 104,200 5,639,825
INDUSTRIAL MACHINERY & EQUIPMENT - 2.2%
Caterpillar, Inc. 259,700 14,445,813
Deere & Co. 262,500 21,328,125
Harnischfeger Industries, Inc. 3 84
35,774,022
POLLUTION CONTROL - 0.1%
Browning-Ferris Industries, Inc. 37,500 1,275,000
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 42,688,847
MEDIA & LEISURE - 2.3%
BROADCASTING - 0.8%
British Sky Broadcasting Group ADR (a) 25,200 620,550
People's Choice TV Corp. (a) 16,700 446,725
Tele-Communications, Inc. Class A (a) 526,800 11,062,800
Viacom, Inc. Class B (non-vtg.) (a) 16,900 756,275
12,886,350
ENTERTAINMENT - 0.2%
Royal Caribbean Cruises Ltd. 156,500 4,088,563
LEISURE DURABLES & TOYS - 0.3%
Fleetwood Enterprises, Inc. 50,000 1,181,250
Outboard Marine Corp. 191,100 4,013,100
5,194,350
LODGING & GAMING - 0.1%
Circus Circus Enterprises, Inc. 50,100 1,615,725
PUBLISHING - 0.2%
American Media, Inc. Class A 72,400 515,850
Gannett Co., Inc. 49,000 2,615,375
3,131,225
RESTAURANTS - 0.7%
Au Bon Pain, Inc. Class A (a) 42,600 580,425
Bertucci's, Inc. (a) 67,100 578,738
Boston Chicken, Inc. (a) 53,500 869,375
Brinker International, Inc. (a) 75,200 1,250,200
Bugaboo Creek Steak House, Inc. (a) 1,700 21,250
Cracker Barrel Old Country Store, Inc. 36,900 825,638
McDonald's Corp. 204,100 6,964,913
Outback Steakhouse, Inc. 25,000 634,375
11,724,914
TOTAL MEDIA & LEISURE 38,641,127
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
NONDURABLES - 5.0%
BEVERAGES - 0.0%
PepsiCo, Inc. 19,600 $ 764,400
HOUSEHOLD PRODUCTS - 0.2%
Tambrands, Inc. 68,600 3,061,275
TOBACCO - 4.8%
Philip Morris Companies, Inc. 862,600 56,284,650
RJR Nabisco Holdings Corp. 3,747,270 22,015,211
78,299,861
TOTAL NONDURABLES 82,125,536
PRECIOUS METALS - 0.5%
Homestake Mining Co. 162,700 3,009,950
Santa Fe Pacific Gold Corp. 356,247 4,497,618
7,507,568
RETAIL & WHOLESALE - 5.7%
APPAREL STORES - 0.2%
TJX Companies, Inc. 224,600 2,947,875
GENERAL MERCHANDISE STORES - 2.8%
Federated Department Stores, Inc. (Del.) (a) 694,000 15,354,750
Sears, Roebuck & Co. 228,400 12,190,850
Value City Department Stores, Inc. (a) 159,700 1,297,563
Wal-Mart Stores, Inc. 675,600 17,227,800
46,070,963
GROCERY STORES - 0.2%
Food Lion Inc.:
Class A 243,900 1,371,938
Class B 120,000 690,000
Stop & Shop Companies, Inc. (a) 78,600 1,886,400
3,948,338
RETAIL & WHOLESALE, MISCELLANEOUS - 2.5%
Best Buy Co., Inc. (a) 289,000 6,249,625
Body Shop International PLC 35,600 100,473
Circuit City Stores, Inc. 286,100 7,545,888
Good Guys, Inc. (a) 88,900 1,044,575
Home Depot, Inc. (The) 207,800 9,195,150
Officemax, Inc. (a) 101,500 2,600,938
Office Depot, Inc. (a) 69,900 1,703,813
Rex Stores Corp. (a) 63,500 889,000
Staples, Inc. (a) 22,050 581,569
Toys "R" Us, Inc. (a) 441,100 11,303,188
41,214,219
TOTAL RETAIL & WHOLESALE 94,181,395
SERVICES - 0.2%
Borg Warner Securities Corp. (a) 62,500 492,188
Pinkertons, Inc. (a) 58,300 947,375
Supercuts, Inc. (a) 62,000 $ 573,500
Zebra Technologies Corp. Class A (a) 19,100 783,100
2,796,163
TECHNOLOGY - 13.3%
COMMUNICATIONS EQUIPMENT - 0.3%
Cabletron Systems, Inc. (a) 85,200 3,823,350
Cisco Systems, Inc. (a) 22,300 850,188
4,673,538
COMPUTER SERVICES & SOFTWARE - 0.7%
MicroAge, Inc. (a) 9,300 89,513
Microsoft Corp. (a) 132,700 9,438,288
SHL Systemhouse, Inc. (a) 207,200 1,243,200
10,771,001
COMPUTERS & OFFICE EQUIPMENT - 7.2%
Bay Networks, Inc. (a) 120,100 4,428,688
Compaq Computer Corp. (a) 1,278,100 44,094,450
Digital Equipment Corp. (a) 139,500 5,283,563
Hewlett-Packard Co. 105,100 12,651,413
International Business Machines Corp. 423,100 34,641,313
SCI Systems, Inc. (a) 439,900 8,220,631
Silicon Graphics, Inc. (a) 57,100 2,027,050
Sun Microsystems, Inc. (a) 131,200 4,559,200
Tandem Computers, Inc. (a) 55,100 854,050
Tech Data Corp. (a) 261,300 2,678,325
119,438,683
ELECTRONIC INSTRUMENTS - 0.2%
Kulicke & Soffa Industries, Inc. (a) 120,500 3,298,688
ELECTRONICS - 4.9%
Intel Corp. 569,700 48,353,288
Methode Electronics, Inc. Class A 92,100 1,450,575
Molex, Inc. 35,125 1,185,469
Motorola, Inc. 304,700 16,644,238
Solectron Corp. (a) 429,198 12,554,042
80,187,612
TOTAL TECHNOLOGY 218,369,522
TRANSPORTATION - 2.6%
AIR TRANSPORTATION - 0.1%
AMR Corp. (a) 14,300 925,925
RAILROADS - 2.5%
Burlington Northern, Inc. 148,900 8,840,938
CSX Corp. 225,400 17,750,250
Canadian Pacific Ltd. Ord. 363,900 5,428,919
Southern Pacific Rail Corp. (a) 569,000 9,957,500
41,977,607
TOTAL TRANSPORTATION 42,903,532
VALUE MOODY'S PRINCIPAL VALUE
SHARES (NOTE 1) RATINGS AMOUNT (B) (NOTE 1)
COMMON STOCKS - CONTINUED
UTILITIES - 8.0%
CELLULAR - 2.3%
Airtouch Communications (a) 220,700 $ 6,014,075
Vodafone Group PLC sponsored ADR 978,700 32,419,438
38,433,513
ELECTRIC UTILITY - 2.4%
American Electric Power Co., Inc. 103,000 3,270,250
Baltimore Gas & Electric Co. 79,200 1,871,100
Carolina Power & Light Co. 90,100 2,443,963
Central & South West Corp. 81,600 1,978,800
Consolidated Edison Co. of New York, Inc. 99,800 2,719,550
Detroit Edison Company 57,400 1,571,325
Dominion Resources, Inc. (Va.) 61,900 2,228,400
Duke Power Co. 53,500 2,059,750
Niagara Mohawk Power Corp. 80,200 1,102,750
Ohio Edison Co. 114,500 2,290,000
Pacific Gas & Electric Co. 69,100 1,718,863
PacifiCorp. 164,800 3,193,000
Peco Energy Co. 115,400 2,899,425
Public Service Enterprise Group, Inc. 79,700 2,181,788
SCEcorp 141,100 2,204,688
Southern Co. 139,200 2,836,200
Texas Utilities Co. 48,700 1,546,225
Unicom Corp. 72,700 1,726,625
39,842,702
GAS - 0.1%
ENSERCH Corp. 56,700 843,413
TELEPHONE SERVICES - 3.2%
Ameritech Corp. 290,000 11,962,500
Bell Atlantic Corp. 142,200 7,501,050
BellSouth Corp. 165,100 9,823,450
NYNEX Corp. 97,800 3,875,325
SBC Communications, Inc. 403,200 16,984,800
Telecom Argentina Class B Sponsored ADR 6,100 263,825
Telebras PN (Pfd. Reg.) 33,831,300 909,724
Telefonica de Argentina sponsored ADR 21,500 518,688
Telefonos de Mexico SA sponsored ADR
representing shares Ord. Class L 43,300 1,234,050
53,073,412
TOTAL UTILITIES 132,193,040
TOTAL COMMON STOCKS
(Cost $1,149,720,144) 1,315,509,573
CONVERTIBLE BONDS - 0.0%
BASIC INDUSTRIES - 0.0%
PAPER & FOREST PRODUCTS - 0.0%
Stone Consolidated Corp. 8%,
12/31/03 (Cost $563,969) - CAD 750,000 $ 670,000
U.S. GOVERNMENT AND GOVERNMENT
AGENCY OBLIGATIONS - 12.2%
U.S. TREASURY OBLIGATIONS - 11.7%
stripped coupon (principal payment):
0%, 2/15/19 Aaa 20,000,000 3,256,800
0%, 8/15/19 Aaa 130,000,000 20,523,100
8 1/8%, 8/15/19 Aaa 160,000,000 169,374,400
TOTAL U.S. TREASURY OBLIGATIONS 193,154,300
U.S. GOVERNMENT AGENCY OBLIGATIONS - 0.5%
Financing Corp. stripped coupon
0%, 9/26/19 Aaa 50,000,000 7,475,000
TOTAL U.S. GOVERNMENT AND
GOVERNMENT AGENCY OBLIGATIONS
(Cost $193,783,524) 200,629,300
MATURITY
AMOUNT
REPURCHASE AGREEMENTS - 7.9%
Investments in repurchase agreements
(U.S. Treasury obligations) in a
joint trading account at 6.20%,
dated 3/31/95 due 4/3/95 $ 129,485,866 129,419,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,473,486,637) $ 1,646,227,873
CURRENCY ABBREVIATIONS:
CAD - Canadian dollar
LEGEND:
(a) Non-income producing
(b) Principal amount is stated in United States dollars unless otherwise
noted.
OTHER INFORMATION:
The composition of long-term debt holdings as a percentage of total value
of investment in securities, is as follows (ratings are unaudited):
MOODY'S S&P
RATINGS RATINGS
Aaa, Aa, A 12.2% AAA, AA, A 12.2%
Baa 0.0% BBB 0.0%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by either S&P or Moody's amounted to 0.0%
INCOME TAX INFORMATION:
At March 31, 1995, the aggregate cost of investment securities for income
tax purposes was $1,473,959,663. Net unrealized appreciation aggregated
$172,268,210, of which $213,522,464 related to appreciated investment
securities and $41,254,254 related to depreciated investment securities.
Statement of Assets and Liabilities
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
March 31, 1995 (Unaudited)
ASSETS
Investment in securities, at value (including repurchase agreements of $129,419,000) (cost $ 1,646,227,873
$1,473,486,637) - See accompanying schedule
Cash 45
Receivable for investments sold 19,099,014
Receivable for fund shares sold 494,014
Dividends receivable 3,765,080
Interest receivable 1,590,831
Other receivables 95,411
Total assets 1,671,272,268
LIABILITIES
Payable for investments purchased $ 42,832,631
Payable for fund shares purchased 281,811
Accrued management fee 996,228
Other payables and accrued expenses 136,976
Total liabilities 44,247,646
NET ASSETS $ 1,627,024,622
Net Assets consist of:
Paid in capital $ 1,431,223,621
Undistributed net investment income 10,079,343
Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions 12,980,183
Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies 172,741,475
NET ASSETS, for 61,161,987 shares outstanding $ 1,627,024,622
NET ASSET VALUE, offering price and redemption price per share ($1,627,024,622 (divided by) 61,161,987 shares) $26.60
</TABLE>
Statement of Operations
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
Six Months Ended March 31, 1995 (Unaudited)
INVESTMENT INCOME $ 15,371,167
Dividends
Interest 10,036,186
Total income 25,407,353
EXPENSES
Management fee $ 4,633,147
Basic fee
Performance adjustment 988,550
Transfer agent fees 43,380
Accounting fees and expenses 301,548
Non-interested trustees' compensation 12,894
Custodian fees and expenses 19,509
Registration fees 3,560
Audit 17,368
Total expenses 6,019,956
Net investment income 19,387,397
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities 23,075,877
Foreign currency transactions 10,019 23,085,896
Change in net unrealized appreciation (depreciation) on:
Investment securities 56,076,886
Assets and liabilities in foreign (1,196) 56,075,690
currencies
Net gain (loss) 79,161,586
Net increase (decrease) in net assets resulting from operations $ 98,548,983
</TABLE>
Statement of Changes in Net Assets
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C>
SIX MONTHS YEAR ENDED
ENDED SEPTEMBER 30,
MARCH 31, 1995 1994
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 19,387,397 $ 20,640,012
Net investment income
Net realized gain (loss) 23,085,896 172,578,769
Change in net unrealized appreciation (depreciation) 56,075,690 (43,203,503)
Net increase (decrease) in net assets resulting from operations 98,548,983 150,015,278
Distributions to shareholders: (25,870,294) (5,278,879)
From net investment income
From net realized gain (153,113,932) (56,743,144)
Total distributions (178,984,226) (62,022,023)
Share transactions 129,217,882 246,738,564
Net proceeds from sales of shares
Reinvestment of distributions 177,278,543 61,856,536
Cost of shares redeemed (36,210,700) (102,420,292)
Net increase (decrease) in net assets resulting from share transactions 270,285,725 206,174,808
Total increase (decrease) in net assets 189,850,482 294,168,063
NET ASSETS
Beginning of period 1,437,174,140 1,143,006,077
End of period (including undistributed net investment income of $10,079,343 and $17,189,720, $ 1,627,024,622 $ 1,437,174,140
respectively)
OTHER INFORMATION
Shares
Sold 4,878,580 8,844,551
Issued in reinvestment of distributions 7,319,506 2,322,816
Redeemed (1,377,463) (3,672,057)
Net increase (decrease) 10,820,623 7,495,310
</TABLE>
Financial Highlights
DRAFT
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED THREE MONTHS YEARS ENDED JUNE 30,
ENDED SEPTEMBER 30, ENDED
MARCH 31, 1995 SEPTEMBER 30,
(UNAUDITED) 1994 1993 1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value,
beginning of period $ 28.55 $ 26.68 $ 26.46 $ 24.68 $ 23.50 $ 21.11 $ 20.64
Income from Investment Operations
Net investment
income .32 .42 .04 .26 .33 .29 .56C
Net realized and
unrealized gain 1.19 2.86 1.23 4.85 4.08 2.61 2.27
(loss)
Total from
investment operations 1.51 3.28 1.27 5.11 4.41 2.90 2.83
Less Distributions (.50) (.12) (.14) (.36) (.34) (.35) (.36)
From net investment
income
From net realized
gain (2.96) (1.29) (.91) (2.97) (2.89) (.16) (2.00)
Total distributions (3.46) (1.41) (1.05) (3.33) (3.23) (.51) (2.36)
Net asset value,
end of period $ 26.60 $ 28.55 $ 26.68 $ 26.46 $ 24.68 $ 23.50 $ 21.11
TOTAL RETURN B 6.48% 12.67% 4.93% 23.28% 20.61% 14.35% 14.42%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of
period (in millions) $ 1,627 $ 1,437 $ 1,143 $ 1,061 $ 479 $ 326 $ 221
Ratio of expenses
to average net .80% .80% .84% .84% .88% .84% .87%
assets A A
Ratio of net
investment income to 2.59% 1.56% .69% 1.41% 1.60% 1.70% 3.07%
average net assets A A C
Portfolio turnover
rate 57% 72% 80% 81% 113% 129% 112%
A A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND OF $.14 AND $.06
PER SHARE, RESPECTIVELY.
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED MARCH 31, 1995 (UNAUDITED)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Destiny Portfolios: Destiny I and Destiny II (the funds) are
authorized to issue an unlimited number of shares. Each fund is registered
under the Investment Company Act of 1940, as amended (the 1940 Act), as an
open-end management investment company organized as a Massachusetts
business trust. Shares of each fund are offered publicly through Fidelity
Systematic Investment Plans: Destiny I and Destiny II (the Plans), a unit
investment trust with two series. The following summarizes the significant
accounting policies of the funds:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities for which exchange quotations are not readily
available (and in certain cases debt securities which trade on an
exchange), are valued primarily using dealer-supplied valuations or at
their fair value as determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Short-term securities maturing within sixty days of their purchase date are
valued at amortized cost or original cost plus accrued interest, both of
which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, each fund is not subject to income taxes to
the extent that it distributes all of its taxable income for the fiscal
year. The schedules of investments include information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the funds are informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses can be directly attributed to a fund. Expenses
which cannot be directly attributed are apportioned between the funds.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for foreign
currency transactions, partnerships, non-taxable dividends and losses
deferred due to wash sales. The funds also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect net investment income per share. Undistributed net investment income
and accumulated undistributed net realized gain (loss) on investments may
include temporary book and tax basis differences which will reverse in a
subsequent period. Any taxable income or gain remaining at fiscal year end
is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The funds may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the funds' currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the funds' investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the funds, along with other
affiliated entities of Fidelity Management & Research Company (FMR), may
transfer uninvested cash balances into one or more joint trading accounts.
These balances are invested in one or more repurchase agreements that
mature in 60 days or less from the date of purchase, and are collateralized
by U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The funds, through their custodian, receive delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. FMR, the funds'
investment adviser, is responsible for determining that the value of these
underlying securities remains at least equal to the resale price.
3. PURCHASES AND SALES OF INVESTMENTS.
Destiny I: Purchases and sales of securities, other than short-term
securities, aggregated $993,811,566 and $965,986,998, respectively, of
which U.S. government and government agency obligations aggregated
$194,484,808 and $41,104,760, respectively.
Destiny II: Purchases and sales of securities, other than short-term
securities, aggregated $512,750,795 and $400,360,236, respectively, of
which U.S. government and government agency obligations aggregated
$101,693,125 and $15,414,880, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of each fund.
The group fee rate is the weighted average of a series of rates and is
based on the monthly average net assets of all the mutual funds advised by
FMR. The rates ranged from .2700% to .5200% for the period. In the event
that these rates were lower than the contractual rates in effect during the
period, FMR voluntarily implemented the above rates, as they resulted in
the same or a lower management fee. The annual individual fund fee rates
for Destiny I and Destiny II are .17% and .30%, respectively. The basic fee
is subject to a performance
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
adjustment (up to a maximum of (plus/minus).24%) based on each fund's
investment performance as compared to the appropriate index over a
specified period of time. For the period, the management fees were
equivalent to annualized rates of .66% and .75%, of average net assets
after the performance adjustment for the Destiny I and Destiny II funds,
respectively.
Fidelity Distributors Corporation (FDC), an affiliate of FMR and sponsor of
the Plans, received $489,455 and $1,380,809 as its portion of the Creation
and Sales Charges of Destiny I and Destiny II, respectively, for the
period.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the funds' transfer, dividend disbursing and shareholder servicing agent.
During the period October 1, 1994 to December 31, 1994, FSC received fees
based on the type, size, number of accounts and the number of transactions
made by shareholders. Effective January 1, 1995, the Board of Trustees
approved a revised transfer agent contract pursuant to which FSC receives
account fees and asset-based fees that vary according to account size and
type of account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements.
ACCOUNTING FEES. FSC maintains the funds' accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. Each fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms for Destiny I and Destiny II
were $520,873 and $243,743, respectively.
5. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions with companies which are or
were affiliates are as follows for Destiny I:
Purchase Sales Dividend Market
Affiliate Cost Cost Income Value
Methode Electronics, Inc. Class A $ - $ 174,954 $ 91,950 $ 23,911,650
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL INFORMATION OF THE
SHAREHOLDERS OF THE FUNDS. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION
TO PROSPECTIVE INVESTORS IN THE FUNDS
UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. MUTUAL FUND
SHARES ARE NOT DEPOSITS OR
OBLIGATIONS OF, OR GUARANTEED BY, ANY BANK OR DEPOSITORY INSTITUTION, THE
FDIC, THE FEDERAL RESERVE BOARD OR
ANY OTHER AGENCY. MUTUAL FUNDS ARE SUBJECT TO INVESTMENT RISK, INCLUDING
THE POSSIBLE LOSS OF PRINCIPAL. NEITHER
THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
