(2_FIDELITY_LOGOS)FIDELITY
MID-CAP STOCK
FUND
ANNUAL REPORT
APRIL 30, 1996
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 20 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 24 Notes to the financial statements.
REPORT OF INDEPENDENT 28 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 29
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC,
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first four
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in bond markets so far this year. In 1995,
both stock and bond markets posted strong results, while the year before,
stocks posted below-average returns and bonds had one of the worst years in
history.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term. You also can help to manage some of the risks of investing
through diversification. A stock fund is already diversified because it
invests in many issues. You can diversify even further by placing some of
your money in several different types of stock funds or in other investment
categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 LIFE OF
YEAR FUND
Mid-Cap Stock 30.84% 59.57%
S&P MidCap 400(registered trademark) 29.81% 38.27%
Mid-Cap Funds Average 35.34% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, or since the fund started on
March 29, 1994. For example, if you invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be $1,050.
You can compare the fund's returns to the performance of the Standard &
Poor's MidCap 400 Index - a broad measure of the performance of the mid-cap
market. To measure how the fund's performance stacked up against its peers,
you can compare it to the mid-cap funds average, which reflects the
performance of 126 mid-cap funds with similar objectives tracked by Lipper
Analytical Services over the past 12 months. Both benchmarks include
reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED APRIL 30, 1996 PAST 1 LIFE OF
YEAR FUND
Mid-Cap Stock 30.84% 25.02%
S&P MidCap 400 29.81% 16.74%
Mid-Cap Funds Average 35.34% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
IMAHDR PRASUN SHR__CHT 19960430 19960520 130927 S00000000000001
Mid-Cap Stock SP MidCap 400
00337 SP004
1994/03/29 10000.00 10000.00
1994/03/31 9780.00 9631.19
1994/04/30 9840.00 9702.46
1994/05/31 9890.00 9610.29
1994/06/30 9690.00 9279.69
1994/07/31 9930.00 9594.28
1994/08/31 10740.00 10097.02
1994/09/30 10990.00 9908.20
1994/10/31 11180.00 10016.20
1994/11/30 10720.00 9564.47
1994/12/31 10846.15 9652.27
1995/01/31 10927.24 9752.75
1995/02/28 11464.48 10263.99
1995/03/31 11860.51 10442.07
1995/04/30 12195.61 10651.75
1995/05/31 12378.39 10908.78
1995/06/30 12984.78 11352.87
1995/07/31 13715.88 11945.15
1995/08/31 14004.20 12166.02
1995/09/30 14302.82 12460.92
1995/10/31 14014.50 12140.30
1995/11/30 14539.66 12670.47
1995/12/31 14525.66 12638.92
1996/01/31 14977.57 12822.31
1996/02/29 15397.20 13258.14
1996/03/31 15386.44 13416.97
1996/04/30 15956.71 13826.73
IMATRL PRASUN SHR__CHT 19960430 19960520 130929 R00000000000029
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Mid-Cap Stock Fund on March 29, 1994, when the fund started. As the chart
shows, by April 30, 1996, the value of your investment would have grown to
$15,957 - a 59.57% increase on your initial investment. For comparison,
look at how the S&P MidCap 400 Index did over the same period. With
dividends reinvested, the same $10,000 investment in the S&P MidCap 400
Index would have grown to $13,827 - a 38.27% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Although rising interest rates
added to an already clouded
corporate earnings outlook in the
first quarter of 1996, stocks
managed to post solid returns for
the 12 months ended April 30,
1996. The Standard & Poor's 500
Index finished the period with a
return of 30.21% (including
reinvested dividends) - well
above its long-term historical
annual average of about 12%.
During the period, the market
appeared to lose its appetite for
the blue-chip, multinational firms
that drove the market in 1995.
This development was due in part
to a stronger dollar, surging cash
flows into mutual funds and the
higher valuations of
large-capitalization stocks relative
to small-capitalization stocks.
Additionally, technology
companies no longer had the
broad-based share price
increases they did in 1995. Falling
semiconductor prices worldwide
punished computer chip makers'
stocks, and the market put more
of an emphasis on software and
networking companies. Rising
interest rates - while fanning
fears of lower corporate earnings -
and higher commodity prices
caused another major shift in the
stock market. Investors, sensing a
renewed economic expansion,
moved from less economically
sensitive stocks like consumer
non-durables to more cyclical
sectors, such as aluminum,
chemical, oil, oil service and
basic industries. Financial stocks
performed well throughout the
period as high stock market
volume and the demand for
financial services created a
positive backdrop for the industry.
An interview with Jennifer Uhrig, Portfolio Manager of Fidelity Mid-Cap
Stock Fund
Q. HOW DID THE FUND PERFORM, JENNIFER?
A. The fund outperformed its index, but lagged its peer group during the
period. During the 12 months ending April 30, 1996, the fund had a return
of 30.84%, while the S&P MidCap 400 index returned 29.81%. The mid-cap
funds average returned 35.34%, according to Lipper Analytical Services.
Q. WHAT WERE THE KEY FACTORS IN THE FUND'S PERFORMANCE?
A. In retrospect, I probably ran the fund less aggressively than I should
have during a period of very strong stock market performance. Cutting back
the fund's holdings in the technology sector - from more than 22% on
October 31, 1995 to less than 14% on April 30 - hurt its performance
compared to other mid-cap funds when the technology sector rebounded early
this year. Additionally, the technology stocks the fund continued to hold
were generally a less speculative variety, and they underperformed more
speculative tech stocks.
Q. IT SEEMS THAT AS YOU TRIMMED THE FUND'S TECHNOLOGY HOLDINGS YOU INVESTED
MORE IN FINANCIAL SERVICES AND DURABLES . . .
A. That's right. I've been investing in insurance stocks, which I saw as a
good way to gain exposure to financial services without having to worry
about credit deterioration, which we have started to see with banks. I also
liked the valuations in the insurance sector. UNUM, for example, was a
newcomer to the fund's 10 largest holdings and is a strong secular story as
well. It is a leader in disability insurance, which I feel is an
underpenetrated market showing strong growth. Household International, a
consumer finance company and another top-10 holding, has been a turnaround
story where new management has improved operations and reduced costs. As a
result, the stock gained more than 20 percent during the period. On the
durables side, Lear Seating, which manufactures seats for the automobile
industry, has benefited from the outsourcing trend in that industry, as
well as from the acquisition of other auto parts suppliers.
Q. WHAT OTHER HOLDINGS PERFORMED WELL FOR THE FUND?
A. Interestingly, the four largest positions at the end of the period all
contributed to the fund's performance, while representing four very
different sectors. Sallie Mae, the student loan company, leveraged its
strong balance sheet, bought back stock and reduced costs. Wisconsin
Central, a railroad company, made strategic acquisitions, including the
government-owned New Zealand rail system, and continued its excellent
growth story. Cytec, a specialty chemical company which I've discussed in
the past, rose by about 50% during the period. WorldCom has been a
successful wholesaler of telephone services over its low-cost network. Like
Cytec, its stock price grew about 44% during the period.
Q. AT THE SAME TIME, THERE MUST HAVE BEEN SOME DISAPPOINTMENTS . . .
A. That's true. Nokia, a manufacturer of cellular phones and equipment,
suffered during the period due to intense price competition and was a
disappointment. Another disappointment was Symantec, a seller of software
utilities for the PC market that failed to meet sales expectations. Its
stock declined as a result.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SEVERAL MONTHS?
A. During 1994 and 1995, the larger companies within the fund's universe
outperformed the smaller ones. Beginning this February, the situation
reversed, as smaller companies began to outperform the larger companies
quite dramatically. Over the past three months, for example, the Russell
2000 index of smaller-cap stocks jumped 10.84%, the S&P Mid-Cap index rose
7.83%, and the S&P 500 Index of larger companies moved up 3.40%.
Nonetheless, because of the smaller companies' two years of weak stock
performance, I feel this segment of the mid-cap universe still looks
attractive from a valuation standpoint, and I will try to exploit this
opportunity based on bottom-up stock picking on a company-by-company basis.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL: long-term growth of
capital by investing mainly in
equity securities of
companies with
medium-sized market
capitalizations
START DATE: March 29, 1994
SIZE: as of April 30, 1996,
more than $1.4 billion
MANAGER: Jennifer Uhrig,
since inception; manager,
Fidelity Select Retailing
Portfolio, 1991-1993; Fidelity
Select Developing
Communications Portfolio,
1990 -1991; Fidelity Select
Telecommunications
Portfolio, 1987-1990; joined
Fidelity in 1987
(checkmark)
JENNIFER UHRIG ON THE
CHANGING DYNAMICS WITHIN
THE MID-CAP MARKET:
"The mid-cap universe covers
a broad territory, generally
including small companies with
market capitalizations of
around $100 million up to large
companies with capitalizations
of about $5 billion. It's not
surprising, then, that different
parts of this broad universe
outperform or lag at different
times depending on whether
small- or large-company
stocks are in favor. In the
1980s, the large companies
dominated the market. Starting
in 1991 and continuing over the
next two years, small- and
mid-cap companies started to
outperform. But that rally never
got to the extremes you
normally see in a real bull
small-cap cycle. Then in 1994
and 1995, the smaller
companies had two relatively
weak years, leading to some
very attractive valuations today.
"This year's outperformance,
combined with reasonable
valuations, suggest that the
smaller-company cycle is
coming back. So I've begun
working on increasing the
fund's exposure to the smaller
end of the mid-cap universe.
In view of this, it's possible
that the average market
capitalization of the fund's
holdings - about $2 billion, and
fairly typical for my index over
the past year - could go down
as I invest more in relatively
smaller companies within the
mid-cap market. But I still don't
think I'll be chasing the more
speculative parts of the
market. There's too much risk
for the potential reward."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Student Loan Marketing 2.4 1.2
Association
Wisconsin Central Transportation 2.4 1.6
Corp.
Cytec Industries, Inc. 2.2 1.4
WorldCom, Inc. 2.1 0.9
Household International, Inc. 1.8 1.1
UNUM Corp. 1.8 0.7
Digital Equipment Corp. 1.5 1.7
Lear Seating Corp. 1.4 0.7
Polaroid Corp. 1.3 1.2
CompUSA, Inc. 1.3 0.8
TOP FIVE MARKET SECTORS AS OF APRIL 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET
SECTORS
6 MONTHS AGO
Technology 13.6 22.6
Finance 13.0 9.0
Durables 11.8 7.7
Basic Industries 7.1 4.1
Retail & Wholesale 5.9 1.5
ASSET ALLOCATION
AS OF APRIL 30, 1996 * AS OF OCTOBER 31, 1995 **
Row: 1, Col: 1, Value: 11.4
Row: 1, Col: 2, Value: 2.2
Row: 1, Col: 3, Value: 44.0
Row: 1, Col: 4, Value: 43.4
Row: 1, Col: 1, Value: 13.1
Row: 1, Col: 2, Value: 2.5
Row: 1, Col: 3, Value: 40.0
Row: 1, Col: 4, Value: 45.1
Stocks 87.4%
Bonds 1.2%
Short-term
investments 11.4%
FOREIGN
INVESTMENTS 3.7%
Stocks 85.1%
Bonds 1.8%
Short-term
investments 13.1%
FOREIGN
INVESTMENTS 5.8%
*
*
*
**
INVESTMENTS APRIL 30, 1996
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 87.3%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 4.1%
AAR Corp. 148,000 $ 3,016
BE Aerospace, Inc. (a) 304,100 4,676
C A E Industries Ltd. 333,700 2,915
Flightsafety International, Inc. 189,900 10,516
Harsco Corp. 214,100 14,746
Precision Castparts Corp. 131,100 5,686
Rohr Industries, Inc. (a) 235,000 4,289
Thiokol Corp. 236,500 10,110
Wyman-Gordon Co. (a) 273,700 4,961
60,915
BASIC INDUSTRIES - 7.1%
CHEMICALS & PLASTICS - 4.0%
Cytec Industries, Inc. (a) 400,200 33,167
IMC Fertilizer Group, Inc. 377,500 13,920
International Specialty Products, Inc. (a) 366,400 4,580
Valspar Corp. 144,100 6,935
58,602
IRON & STEEL - 1.2%
Hexcel Corp. (a) 449,300 5,672
Nucor Corp. 158,100 8,893
SPS Technologies, Inc. (a) 60,800 3,952
18,517
METALS & MINING - 1.3%
IMCO Recycling, Inc. 243,900 5,305
Inco Ltd. 299,500 10,115
Kaiser Aluminum Corp. (a) 257,800 3,448
18,868
PAPER & FOREST PRODUCTS - 0.6%
Champion International Corp. 175,400 8,463
Pentair, Inc. 10,000 273
8,736
TOTAL BASIC INDUSTRIES 104,723
CONGLOMERATES - 2.5%
Allied-Signal, Inc. 176,400 10,253
Coltec Industries, Inc. (a) 349,200 4,540
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONGLOMERATES - CONTINUED
ITT Industries, Inc. 295,000 $ 8,113
Tyco International Ltd. 363,700 14,048
36,954
CONSTRUCTION & REAL ESTATE - 1.1%
BUILDING MATERIALS - 0.4%
Sherwin-Williams Co. 127,600 5,965
CONSTRUCTION - 0.7%
DR Horton, Inc. 294,000 2,940
Kaufman & Broad Home Corp. 307,100 4,338
Pulte Corp. 71,800 1,903
Standard Pacific Corp. 281,100 1,792
10,973
TOTAL CONSTRUCTION & REAL ESTATE 16,938
DURABLES - 11.8%
AUTOS, TIRES, & ACCESSORIES - 5.4%
Borg-Warner Automotive, Inc. 228,000 8,693
Eaton Corp. 78,100 4,725
Federal-Mogul Corp. 227,600 4,324
Intermet Corp. (a) 337,200 4,974
Lear Seating Corp. (a) 621,100 20,496
Magna International, Inc. Class A 50,000 2,305
Masland Corp. 345,300 7,035
PACCAR, Inc. 14,600 723
Superior Industries International, Inc. 312,400 8,552
TRW, Inc. 188,300 17,677
Tower Automotive, Inc. (a) 62,800 1,421
80,925
CONSUMER ELECTRONICS - 1.1%
Maytag Co. 390,900 8,404
Whirlpool Corp. 130,100 7,822
16,226
HOME FURNISHINGS - 2.7%
Ethan Allen Interiors, Inc. (a) 380,800 9,901
Furniture Brands International, Inc. (a) 803,900 7,939
Heilig-Meyers Co. 510,300 10,525
Leggett & Platt, Inc. 436,600 11,242
39,607
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
TEXTILES & APPAREL - 2.6%
Adidas AG (b) 5,000 $ 380
Adidas AG 100,000 7,606
Fruit of the Loom, Inc. Class A (a) 33,000 870
Liz Claiborne, Inc. 273,000 9,930
Warnaco Group, Inc. Class A 312,300 8,198
Westpoint Stevens, Inc. Class A (a) 545,800 11,462
38,446
TOTAL DURABLES 175,204
ENERGY - 1.4%
ENERGY SERVICES - 0.5%
Transocean Drilling AS (a) 257,550 7,209
OIL & GAS - 0.9%
Amerada Hess Corp. 133,300 7,548
Belco Oil & Gas Corp. (a) 220,200 6,358
13,906
TOTAL ENERGY 21,115
FINANCE - 13.0%
BANKS - 1.4%
Bank of New York Co., Inc. 128,900 6,252
Fleet Financial Group, Inc. 321,400 13,820
20,072
CREDIT & OTHER FINANCE - 2.6%
Beneficial Corp. 197,000 10,884
Household International, Inc. 390,600 27,000
37,884
FEDERAL SPONSORED CREDIT - 3.8%
Federal Home Loan Mortgage Corp. 155,100 12,931
Federal National Mortgage Association 270,000 8,269
Student Loan Marketing Association 483,200 35,394
56,594
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - 4.9%
Allmerica Financial Corp. 148,900 $ 3,871
American Bankers Insurance Group, Inc. 200,000 7,900
American Financial Group, Inc. 132,800 4,067
American Reinsurance Corp. 155,600 6,457
Highlands Insurance Group, Inc. (a) 17,700 336
ITT Hartford Group, Inc. 146,500 7,160
Protective Life Corp. 69,700 2,422
Prudential Reinsurance Holdings, Inc. 287,400 6,538
Riscorp, Inc. (a) 348,400 8,231
UNUM Corp. 440,720 26,223
73,205
SAVINGS & LOANS - 0.3%
Collective Bancorp, Inc. 85,600 2,070
First Federal Savings & Loan Association
(East Hartford, Conn.) 22,200 389
FirstFed Financial Corp. (a) 70,200 1,132
Walden Bancorp, Inc. 85,300 1,621
5,212
TOTAL FINANCE 192,967
HEALTH - 5.6%
DRUGS & PHARMACEUTICALS - 1.1%
Affinity Technology Group, Inc. 900 21
ALZA Corp. Class A (a) 103,450 2,948
Biogen, Inc. (a) 189,600 12,490
15,459
MEDICAL EQUIPMENT & SUPPLIES - 2.7%
Cardinal Health, Inc. 79,600 4,995
Cygnus, Inc. (a) 274,200 5,861
McKesson Corp. 340,000 16,193
Pall Corp. 141,000 3,948
St. Jude Medical, Inc. (a) 234,450 8,557
39,554
MEDICAL FACILITIES MANAGEMENT - 1.8%
Caremark International, Inc. 296,100 8,180
Health Care & Retirement Corp. (a) 166,200 6,129
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - CONTINUED
Health Systems International, Inc. (a) 161,400 $ 4,983
Horizon Mental Health Management, Inc. (a) 85,000 1,785
Tenet Healthcare Corp. (a) 229,300 4,701
TheraTx, Inc. (a) 95,200 1,428
27,206
TOTAL HEALTH 82,219
INDUSTRIAL MACHINERY & EQUIPMENT - 2.8%
ELECTRICAL EQUIPMENT - 0.6%
California Amplifier, Inc. (a) 127,000 4,509
Cherry Corp. (a):
Class A 100,000 925
Class B 120,000 1,140
Owosso Corp. 171,900 1,590
8,164
INDUSTRIAL MACHINERY & EQUIPMENT - 1.7%
Dover Corp. 97,900 5,042
Fedders Corp. Class A 92,250 530
Hardinge Brothers, Inc. 147,600 4,391
Ingersoll-Rand Co. 202,300 7,839
UCAR International, Inc. (a) 195,900 8,032
25,834
POLLUTION CONTROL - 0.5%
Allied Waste Industries, Inc. (a) 710,700 6,929
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 40,927
MEDIA & LEISURE - 5.5%
BROADCASTING - 0.9%
American Telecasting, Inc. (a) 288,300 4,397
CAI Wireless Systems, Inc. (a) 366,430 2,519
Heartland Wireless Communications, Inc. (a) 152,678 4,256
People's Choice TV Corp. (a) 199,092 2,862
Wireless One, Inc. (a) 20,100 312
14,346
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
ENTERTAINMENT - 0.8%
MGM Grand, Inc. (a) 270,400 $ 11,796
LEISURE DURABLES & TOYS - 0.1%
West Marine, Inc. (a) 27,000 1,492
LODGING & GAMING - 3.1%
Aztar Corp. (a) 443,100 4,320
Circus Circus Enterprises, Inc. (a) 278,300 10,228
Hilton Hotels Corp. 145,000 15,297
Mirage Resorts, Inc. (a) 219,800 11,512
Sun International Hotels Ltd. Ord. (a) 99,700 4,262
45,619
PUBLISHING - 0.6%
Hollinger International, Inc. Class A 736,200 8,742
TOTAL MEDIA & LEISURE 81,995
NONDURABLES - 1.7%
TOBACCO - 1.7%
Dimon, Inc. 122,550 2,083
Philip Morris Companies, Inc. 100,000 9,013
RJR Nabisco Holdings Corp. 356,600 10,653
Universal Corp. 161,900 3,886
25,635
PRECIOUS METALS - 0.9%
Firstmiss Gold, Inc. (a) 190,800 5,867
Newmont Mining Corp. 122,200 7,072
12,939
RETAIL & WHOLESALE - 5.9%
APPAREL STORES - 1.9%
Charming Shoppes, Inc. 441,400 2,842
Gymboree Corp. (a) 414,400 10,723
Melville Corp. 227,600 8,848
Talbots, Inc. 217,800 6,262
28,675
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
GENERAL MERCHANDISE STORES - 0.5%
Wal-Mart Stores, Inc. 300,000 $ 7,163
GROCERY STORES - 0.4%
Whole Foods Market, Inc. (a) 256,600 5,228
RETAIL & WHOLESALE, MISCELLANEOUS - 3.1%
Circuit City Stores, Inc. 5,100 162
Fabri-Centers of America, Inc. (a):
Class A 77,300 792
Class B (non-vtg.) 78,300 783
Friedmans, Inc. Class A (a) 232,400 5,984
Gadzooks, Inc. (a) 164,200 8,292
Office Depot, Inc. (a) 305,000 6,824
PETsMART, Inc. (a) 175,500 7,788
Tiffany & Co., Inc. 158,500 10,342
U.S. Office Products Co. (a) 31,000 1,116
Zale Corp. (a) 179,500 3,343
45,426
TOTAL RETAIL & WHOLESALE 86,492
SERVICES - 2.3%
ADVERTISING - 1.6%
ADVO, Inc. 646,100 6,542
Interpublic Group of Companies, Inc. 153,400 7,171
Omnicom Group, Inc. 244,400 10,601
24,314
SERVICES - 0.7%
Block (H&R), Inc. 272,500 9,572
TOTAL SERVICES 33,886
TECHNOLOGY - 13.6%
COMMUNICATIONS EQUIPMENT - 0.6%
Dynatech Corp. (a) 319,500 8,227
COMPUTER SERVICES & SOFTWARE - 4.4%
Barra, Inc. (a) 57,000 1,888
Broderbund Software, Inc. (a) 97,700 4,299
Casino Data Systems (a) 288,600 5,123
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
CompUSA, Inc. (a) 546,200 $ 18,912
Equifax, Inc. 325,400 7,972
I2 Technologies, Inc. (a) 500 20
Oracle Systems Corp. (a) 320,400 10,814
Parametric Technology Corp. (a) 152,100 6,122
Spectrum Holobyte, Inc. (a) 556,200 3,963
SunGard Data Systems, Inc. (a) 172,900 5,749
Sykes Enterprises, Inc. 400 7
64,869
COMPUTERS & OFFICE EQUIPMENT - 5.7%
Bell & Howell Co. (a) 234,100 7,374
Compaq Computer Corp. (a) 157,400 7,339
Dell Computer Corp. (a) 197,000 9,037
Diebold, Inc. 225,300 8,674
Digital Equipment Corp. (a) 378,000 22,586
Exabyte Corp. (a) 12,300 213
Intergraph Corp. (a) 232,500 2,950
Kronos, Inc. (a) 169,850 5,053
SCI Systems, Inc. (a) 174,600 7,486
Seagate Technology (a) 197,204 11,438
Wang Laboratories, Inc. (a) 70,900 1,679
83,829
ELECTRONICS - 1.6%
CTS Corp. 44,000 1,837
Cirrus Logic, Inc. 140,900 2,941
Cyrix Corp. (a) 110,200 3,375
Linear Technology Corp. 197,700 6,796
Solectron Corp. (a) 206,700 9,198
24,147
PHOTOGRAPHIC EQUIPMENT - 1.3%
Polaroid Corp. 433,400 19,503
TOTAL TECHNOLOGY 200,575
TRANSPORTATION - 3.9%
AIR TRANSPORTATION - 0.2%
America West Airlines, Inc. Class B (a) 169,900 3,568
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
RAILROADS - 3.2%
Bombardier, Inc. Class B 503,200 $ 7,075
Burlington Northern Santa Fe Corp. 54,300 4,751
Wisconsin Central Transportation Corp. (a) 416,300 35,177
47,003
TRUCKING & FREIGHT - 0.5%
Caliber System, Inc. 98,900 3,968
Yellow Corp. 222,900 2,731
6,699
TOTAL TRANSPORTATION 57,270
UTILITIES - 4.1%
CELLULAR - 1.9%
Orange PLC ADR (a) 376,000 6,768
Paging Network, Inc. (a) 243,600 5,725
360 Degrees Communications Co. (a) 401,500 9,435
Vodafone Group PLC sponsored ADR 165,800 6,653
28,581
GAS - 0.1%
Aquila Gas Pipeline Corp. 117,600 1,632
TELEPHONE SERVICES - 2.1%
American Portable Telecom, Inc. 4,800 72
WorldCom, Inc. (a) 650,700 30,583
30,655
TOTAL UTILITIES 60,868
TOTAL COMMON STOCKS
(Cost $1,141,011) 1,291,622
CONVERTIBLE PREFERRED STOCKS - 0.1%
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
Cooper Industries, Inc. $0.81 exchangeable 50,000 863
CONVERTIBLE PREFERRED STOCKS - CONTINUED CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - 0.0%
COMPUTERS & OFFICE EQUIPMENT - 0.0%
Wang Labs, Inc. $3.25 (b) 5,300 $ 290
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $1,125) 1,153
U.S. TREASURY OBLIGATIONS - 1.2%
PRINCIPAL
AMOUNT (000S)
U.S. Treasury Bonds:
stripped principal:
0%, 8/15/19 $ 44,050 8,302
0%,11/15/21 3,080 497
8 1/8%, 8/15/19 8,200 9,153
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $18,065) 17,952
REPURCHASE AGREEMENTS - 11.4%
MATURITY
AMOUNT (000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.33%, dated
4/30/96 due 5/1/96 $ 168,853 168,828
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,329,029) $ 1,479,555
LEGEND
1. Non-income producing
2. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $670,000 or 0.1% of net
assets.
INCOME TAX INFORMATION
At April 30, 1996, the aggregate cost of investment securities for income
tax purposes was $1,330,606,000. Net unrealized appreciation aggregated
$148,949,000, of which $176,933,000 related to appreciated investment
securities and $27,984,000 related to depreciated investment securities.
The fund hereby designates approximately $10,398,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) APRIL 30, 1996
ASSETS
Investment in securities, at value (including repurchase $ 1,479,555
agreements of $168,828) (cost $1,329,029) -
See accompanying schedule
Cash 82
Receivable for investments sold 30,802
Receivable for fund shares sold 13,193
Dividends receivable 638
Interest receivable 137
TOTAL ASSETS 1,524,407
LIABILITIES
Payable for investments purchased $ 39,013
Payable for fund shares redeemed 23,454
Accrued management fee 810
Other payables and accrued expenses 606
TOTAL LIABILITIES 63,883
NET ASSETS $ 1,460,524
Net Assets consist of:
Paid in capital $ 1,226,828
Undistributed net investment income 6,386
Accumulated undistributed net realized gain (loss) on 76,784
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 150,526
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 98,512 shares outstanding $ 1,460,524
NET ASSET VALUE, offering price and redemption price per $14.83
share ($1,460,524 (divided by) 98,512 shares)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR ENDED APRIL 30, 1996
INVESTMENT INCOME $ 9,246
Dividends
Special dividend from ADVO, Inc. 3,738
Interest 8,053
TOTAL INCOME 21,037
EXPENSES
Management fee $ 6,404
Basic fee
Performance adjustment 725
Transfer agent fees 2,464
Accounting fees and expenses 465
Non-interested trustees' compensation 4
Custodian fees and expenses 58
Registration fees 537
Audit 36
Legal 5
Miscellaneous 6
Total expenses before reductions 10,704
Expense reductions (262) 10,442
NET INVESTMENT INCOME 10,595
REALIZED AND UNREALIZED GAIN (LOSS) 126,038
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on 127,572
investment securities
NET GAIN (LOSS) 253,610
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 264,205
FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
AMOUNTS IN THOUSANDS YEAR THREE MONTH MARCH 29, 1994
ENDED PERIOD ENDED (COMMENCEME
APRIL 30, APRIL 30, NT OF
1996 1995 OPERATIONS) TO
JANUARY 31,
1995
INCREASE (DECREASE) IN NET ASSETS
Operations $ 10,595 $ 691 $ (15)
Net investment income (loss)
Net realized gain (loss) 126,038 8,787 2,049
Change in net unrealized appreciation 127,572 21,621 1,333
(depreciation)
NET INCREASE (DECREASE) IN NET ASSETS 264,205 31,099 3,367
RESULTING FROM OPERATIONS
Distributions to shareholders (4,823) - -
From net investment income
From net realized gain (56,500) (372) (1,422)
TOTAL DISTRIBUTIONS (61,323) (372) (1,422)
Share transactions 1,757,604 414,653 287,356
Net proceeds from sales of shares
Reinvestment of distributions 60,345 367 1,393
Cost of shares redeemed (1,019,326) (124,895) (152,527)
NET INCREASE (DECREASE) IN NET ASSETS 798,623 290,125 136,222
RESULTING FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 1,001,505 320,852 138,167
NET ASSETS
Beginning of period 459,019 138,167 -
End of period (including undistributed net $ 1,460,524 $ 459,019 $ 138,167
investment income (loss) of $6,386, $694,
and $(2) respectively)
OTHER INFORMATION
Shares
Sold 130,754 36,247 26,951
Issued in reinvestment of distributions 4,521 33 136
Redeemed (74,976) (10,887) (14,267)
Net increase (decrease) 60,299 25,393 12,820
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEAR ENDED THREE MONTH MARCH 29, 1994
APRIL 30, PERIOD ENDED (COMMENCEMEN
APRIL 30, T
OF OPERATIONS TO
JANUARY 31,
1996 1995 1995
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 12.01 $ 10.78 $ 10.00
Income from Investment Operations
Net investment income (loss) .11 E .02 -
Net realized and unrealized gain (loss) 3.49 1.23 .92
Total from investment operations 3.60 1.25 .92
Less Distributions (.06) - -
From net investment income
From net realized gain (.72) (.02) (.14)
Total distributions (.78) (.02) (.14)
Net asset value, end of period $ 14.83 $ 12.01 $ 10.78
TOTAL RETURN B, C 30.84% 11.61% 9.27%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 1,460,524 $ 459,019 $ 138,167
Ratio of expenses to average net assets 1.02% 1.27% A 1.63% A
Ratio of expenses to average net assets 1.00% 1.22% A, 1.61% A,
after expense reductions D D D
Ratio of net investment income (loss) to 1.01% .95% A (.03)%
average net assets A
Portfolio turnover rate 179% 163% A 190% A
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM ADVO, INC.
WHICH AMOUNTED TO $0.04 PER SHARE.
NOTES TO FINANCIAL STATEMENTS
For the period ended April 30, 1996
</TABLE>
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Mid-Cap Stock Fund (the fund) is a fund of Fidelity Devonshire
Trust (the trust) and is authorized to issue an unlimited number of shares.
The trust 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. The financial statements have
been prepared in conformity with generally accepted accounting principles
which permit management to make certain estimates and assumptions at the
date of the financial statements. The following summarizes the significant
accounting policies of the fund:
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 (including restricted 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 fund 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, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes 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 fund is informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
as earned. Investment income is recorded net of foreign taxes withheld
where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
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 losses
deferred due to wash sales. The fund also utilized earnings and profits
distributed to shareholders on redemption of shares as a part of the
dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions 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 fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's 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 fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
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 fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $2,299,571,000 and $1,662,739,000, respectively, of which U.S.
government and government agency obligations aggregated $40,123,000 and
$27,556,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the 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 the 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 .2500% 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 rate is .30%. The
basic fee is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on the fund's investment performance as compared
to the appropriate index over a specified period of time. For the period,
the management fee was equivalent to an annual rate of .68% of average net
assets after the performance adjustment.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
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. For the
period, the transfer agent fees were equivalent to an annual rate of .24%
of average net assets.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $1,000,000 for the period.
5. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$246,000 under this arrangement.
In addition, the fund has entered into an arrangement with its transfer
agent whereby interest earned on uninvested cash balances was used to
offset a portion of the fund's expenses. During the period, the fund's
transfer agent fees were reduced by $16,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Devonshire Trust and the Shareholders of
Fidelity Mid-Cap Stock Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Devonshire Trust: Fidelity Mid-Cap Stock Fund, including the
schedule of portfolio investments, as of April 30, 1996, and the related
statement of operations for the year then ended, the statement of changes
in net assets and financial highlights for the year then ended, and for the
period February 1, 1995 to April 30, 1995 and for the period March 29, 1994
(commencement of operations) to January 31, 1995. These financial
statements and financial highlights are the responsibility of the fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audit.
We conducted our audit in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of April 30, 1996 by correspondence with the custodian
and brokers. An audit also
includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Devonshire Trust: Fidelity Mid-Cap Stock Fund as of April 30,
1996, the results of its operations for the year then ended, the changes in
its net assets, and the financial highlights for the year then ended, and
for the period February 1, 1995 to April 30, 1995 and for the period March
29, 1994 (commencement of operations) to January 31, 1995, in conformity
with generally accepted accounting principles.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
June 5, 1996
DISTRIBUTIONS
The Board of Trustees of Fidelity MidCap Stock Fund voted to pay on June
10, 1996, to shareholders of record at the opening of business on June 7,
1996, a distribution of $.54 per share derived from capital gains realized
from sales of portfolio securities.
A total of 1.0% of the dividends distributed during the fiscal year was
derived from interest on U.S. Government securities which is generally
exempt from state income tax.
A total of 10.0% of the dividends distributed during the fiscal year
qualifies for the dividends-received deduction for corporate shareholders.
The fund will notify shareholders in January 1997 of these percentages for
use in preparing 1996 income tax returns.
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
TO WRITE FIDELITY
If more than one address is listed, please locate the address that is
closest to you. We'll give your correspondence immediate attention and send
you written confirmation upon completion of your request.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
Fidelity Management & Research
(U.K.) Inc., London, England
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
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 *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty Fund
Growth Company Fund
Large Cap Stock Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
