(2_FIDELITY_LOGOS)
FIDELITY
FUND
SEMIANNUAL REPORT
DECEMBER 31, 1993
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
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 last six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 26 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 30 Footnotes to the financial
statements.
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. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider tax-free investments like municipal bonds and municipal
bond funds. Often these can provide higher after-tax yields than comparable
taxable investments. For example, if you're in the new 36% federal income
tax bracket and invest $10,000 in a taxable investment yielding 7%, you'll
pay $252 in federal taxes and receive $448 in income. That same $10,000
invested in a tax-free bond fund yielding 5.5% would allow you to keep $550
in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
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. Each
performance figure 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 stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Fidelity Fund 8.21% 18.36% 94.81% 255.78%
S&P 500(Registered trademark) 4.96% 10.08% 97.26% 302.35%
Average Growth & Income 5.87% 11.55% 86.67% 239.72%
Fund
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or 10 years. For
example, if you had invested $1,000 in a fund that had a 5% return over the
past year, you would have $1,050. You can compare these figures to the
performance of the Standard & Poor's 500 Composite Stock Price Index -
a common proxy for the U.S. stock market. You can also compare them to the
average growth & income fund, which reflects the performance of over
326 growth & income funds tracked by Lipper Analytical Services. Both
benchmarks include reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1993 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Fidelity Fund 18.36% 14.27% 13.53%
S&P 500(Registered trademark) 10.08% 14.55% 14.94%
Average Growth & Income Fund 11.55% 13.13% 12.88%
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 10 YEARS
Fidelity (003) S&P 500
12/31/83 10000.00 10000.00
01/31/84 9686.24 9944.00
02/29/84 9212.67 9593.97
03/31/84 9317.96 9759.95
04/30/84 9364.02 9852.67
05/31/84 8847.65 9306.83
06/30/84 9027.13 9508.79
07/31/84 8960.65 9390.88
08/31/84 9798.22 10428.57
09/30/84 9815.65 10430.66
10/31/84 9929.70 10471.34
11/30/84 9849.19 10354.06
12/31/84 10153.29 10627.40
01/31/85 11119.59 11455.28
02/28/85 11044.00 11596.18
03/31/85 10922.45 11604.30
04/30/85 10756.12 11593.85
05/31/85 11407.59 12263.98
06/30/85 11602.77 12456.52
07/31/85 11686.64 12437.84
08/31/85 11658.69 12332.11
09/30/85 11271.46 11946.12
10/31/85 11764.90 12498.03
11/30/85 12406.36 13355.39
12/31/85 12961.75 14001.80
01/31/86 13291.53 14080.21
02/28/86 14498.10 15133.40
03/31/86 15222.96 15977.85
04/30/86 15029.45 15797.30
05/31/86 15553.55 16637.72
06/30/86 15750.90 16918.89
07/31/86 14865.47 15973.13
08/31/86 15718.41 17158.33
09/30/86 14656.90 15739.34
10/31/86 15319.77 16647.50
11/30/86 15426.16 17052.03
12/31/86 15004.87 16617.21
01/31/87 16743.75 18855.54
02/28/87 17740.31 19600.34
03/31/87 18226.40 20166.79
04/30/87 18114.52 19987.30
05/31/87 18175.54 20161.19
06/30/87 18736.84 21179.33
07/31/87 19863.10 22253.12
08/31/87 20190.74 23083.17
09/30/87 20038.95 22577.65
10/31/87 15093.60 17714.42
11/30/87 14331.19 16254.75
12/31/87 15496.84 17491.74
01/31/88 15884.84 18228.14
02/29/88 16911.87 19077.57
03/31/88 16601.43 18488.08
04/30/88 16854.53 18693.29
05/31/88 16935.07 18855.92
06/30/88 17895.54 19721.41
07/31/88 17721.58 19646.47
08/31/88 17234.46 18978.49
09/30/88 17829.13 19786.97
10/31/88 18203.25 20337.05
11/30/88 17969.42 20046.23
12/31/88 18262.77 20397.04
01/31/89 19269.47 21890.10
02/28/89 18890.48 21345.04
03/31/89 19353.43 21842.38
04/30/89 20379.57 22976.00
05/31/89 21381.84 23906.53
06/30/89 21308.42 23770.26
07/31/89 22966.01 25916.71
08/31/89 23530.55 26424.68
09/30/89 23496.23 26316.34
10/31/89 22710.61 25705.80
11/30/89 23036.95 26230.20
12/31/89 23522.65 26859.73
01/31/90 22263.21 25057.44
02/28/90 22722.39 25380.68
03/31/90 23169.52 26053.27
04/30/90 22575.09 25401.94
05/31/90 24252.70 27878.62
06/30/90 24106.26 27689.05
07/31/90 23880.23 27600.44
08/31/90 22165.00 25105.36
09/30/90 21172.93 23882.73
10/31/90 20945.26 23780.04
11/30/90 21869.32 25316.23
12/31/90 22323.72 26022.55
01/31/91 23762.63 27157.13
02/28/91 25324.88 29098.87
03/31/91 25902.93 29803.06
04/30/91 25930.52 29874.59
05/31/91 27240.84 31165.17
06/30/91 25731.91 29737.81
07/31/91 26883.87 31123.59
08/31/91 27328.01 31861.22
09/30/91 27092.14 31329.13
10/31/91 27357.47 31748.94
11/30/91 25709.60 30469.46
12/31/91 27714.02 33955.17
01/31/92 28149.39 33323.60
02/29/92 28945.08 33756.81
03/31/92 28069.07 33098.55
04/30/92 28265.46 34071.65
05/31/92 28522.28 34238.60
06/30/92 28130.60 33728.44
07/31/92 28737.84 35107.94
08/31/92 28145.78 34388.23
09/30/92 28433.20 34794.01
10/31/92 28784.03 34915.79
11/30/92 29424.70 36106.41
12/31/92 30058.75 36550.52
01/31/93 30852.27 36857.55
02/28/93 31120.44 37358.81
03/31/93 32044.79 38147.08
04/30/93 32044.79 37223.92
05/31/93 32829.50 38221.52
06/30/93 32879.81 38332.36
07/31/93 32912.02 38179.04
08/31/93 34443.83 39626.02
09/30/93 34758.74 39320.90
10/31/93 35333.41 40134.84
11/30/93 34393.05 39753.56
12/31/93 35578.05 40234.58
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Fund on
December 31, 1983. As the chart shows, by December 31, 1993, the value of
your investment would have grown to $35,578 - a 255.78% increase on your
initial investment. The same $10,000 investment in the S&P 500 (with
dividends reinvested) would have grown to $40,235 - a 302.35% 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
An interview with Beth Terrana, Portfolio Manager of Fidelity Fund
Q. BETH, HOW HAS THE FUND PERFORMED?
A. Better than its peers. Fidelity Fund's total return for the six months
ended December 31, 1993 was 8.21%, compared to 5.87% for the average growth
and income fund, according to Lipper Analytical Services. Over the last 12
months, the relative results were about the same: 18.36% for Fidelity Fund,
compared to 11.55% for the average growth and income fund.
Q. WHERE HAVE YOU FOUND WINNERS RECENTLY?
A. I don't have many sector stories to tell because I choose stocks, not
sectors. So the winners may not have a lot in common. British Petroleum
(BP) was a large position - 2% of the fund - and it definitely boosted
performance. The stock had floundered for years. Then new management
arrived and undertook a dramatic restructuring - cutting costs, selling
tangential assets, and focusing the company's resources on those divisions
with the greatest potential for profits. Despite sinking oil prices, BP's
stock has soared. The fund's natural gas stocks have not done nearly as
well but I'm holding on to them. Gas prices have held up well despite the
drop in oil prices. If anything, that adds to my confidence in the
favorable long-term supply/demand story for natural gas.
Q. WHAT CAN YOU TELL US ABOUT COLUMBIA HEALTHCARE?
A. That's also a large position, more than 2% of the fund if you add in
Hospital Corporation of America (HCA); the two are in the process of
merging. I don't like the prospects for most hospitals, given the
uncertainty surrounding health-care reform. But Columbia and HCA will be a
low-cost provider, well-positioned to grow and profit in a more competitive
industry. Both stocks contributed to the fund's performance. I should
mention, too, that lately I've been revisiting the drug stocks, many of
which suffered losses in 1993. But with all the cost-cutting and
restructuring that's going on in the industry, their prospects may be
brighter. Especially attractive, in my view, are companies that can
generate revenues outside the drug business, including Warner-Lambert and
Schering-Plough. All told, health-care stocks have risen from about 1% of
the fund six months ago to more than 7% at the end of December.
Q. DURING THE SAME PERIOD, YOU'VE SOLD MANY OF THE FUND'S TECHNOLOGY
STOCKS. WHY?
A. In retrospect, I wish I'd sold them earlier. The whole group dropped
sharply in October and the fund suffered as a result. Ordinarily, I'll
avoid making big bets on technology stocks, but when I took over the fund
in August about 9% was in this sector. Technology stocks can be volatile,
often for reasons that may not be logical or easy to understand. One
exception that's currently among the fund's top holdings is Xerox - the
newest restructuring story in corporate America. There's a new religion at
Xerox - cost-cutting - and that, combined with hope for renewed revenue
growth thanks to an exciting new product line, is cause for optimism.
Q. WHAT ABOUT AUTO STOCKS?
A. I own all three: Chrysler, Ford and GM. Chrysler, with its many new
products and impressive earnings gains, has been the most interesting story
lately. But GM has new management and a credible cost-cutting story to
tell, both of which are plusses for the company's profit potential. The
environment for the auto industry these days is uniquely favorable. Sales
are up at each of the Big Three. And for the first time in years, U.S.
companies are stealing market share from the Japanese. Goodyear Tire,
another of the fund's largest holdings, has profited from many of the same
trends, and from the fact that oversupply in the after market is finally
drying up.
Q. ANY OTHER NAMES WORTH HIGHLIGHTING?
A. Philip Morris. That's another long out-of-favor stock that has begun to
look like a bargain. I don't think the tobacco business is getting any
worse, and it may actually be getting better. We saw an increase not long
ago in cigarette prices, after several rounds of cuts. And there is
evidence throughout the industry of a more rational, less costly approach
to promotion and advertising. Once the company reports a couple of decent
earnings quarters, I would expect to see renewed interest in the stock
among investors. It's a long-term story, but one that I think has promise.
Q. FOREIGN INVESTMENTS TOTALED 18.3% OF THE FUND'S INVESTMENTS AT THE END
OF DECEMBER. THAT'S UP OVER 60% COMPARED TO SIX MONTHS AGO. WHAT ARE YOU
BUYING?
A. About 4% are foreign bonds, mainly South African government bonds. They
provide the fund with some additional income but also the potential for
price gains as interest rates fall and the South African currency rallies.
As for stocks, besides Europe and Hong Kong, I've begun to look
increasingly toward the so-called emerging markets - developing countries
with rapidly expanding economies. For example, Mexico, where I own Cemex, a
cement producer, and Grupo Carso, a conglomerate; and Brazil, where I own
Telebras, the giant telephone utility.
Q. WHAT'S YOUR OUTLOOK FOR THE COMING MONTHS?
A. Guarded. I hate to sound like a broken record but the market is
expensive. Of course, the market was expensive a year ago, and yet the fund
produced results nearly double the average annual return enjoyed by
long-term investors in the stock market. But I see a couple of compelling
reasons not to count on a repeat performance in 1994. As paradoxical as it
sounds, stocks benefited over the last several years from the weak economy,
which kept interest rates low. Now with the economy showing signs of a
sustained, albeit weak recovery, we could see interest rates begin moving
in the opposite direction. At the same time, stocks were buoyed all year by
a huge influx of new money into the stock market. Recently, however, that
influx has slowed - all the more reason for caution going forward.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing
primarily in large,
well-established companies
with good prospects for
growth and current income
START DATE: April 30, 1930
SIZE: as of December 31,
1993, over $1.5 billion
MANAGER: Beth Terrana,
since August 1, 1993;
manager, Fidelity
Equity-Income Fund, Fidelity
Advisor Equity Portfolio:
Income, VIP Equity-Income
Portfolio, 1990-1993; Fidelity
Growth & Income
Portfolio, 1985-1990
(checkmark)
BETH TERRANA ON HOW THE
MARKET HAS CHANGED:
"A year ago, the differential
between growth stocks and
cyclicals was clear. Growth
stocks - or stocks in
companies with rapidly
expanding earnings - were
expensive; and cyclicals -
those whose prices tend to
move with changes in the
economy - were cheap. So
as long as you were in the
right pond, you didn't have to
hit all the right ducks. That's
no longer the case. These
days, even more than in the
past, the premium is on
stock-picking - identifying
attractive buys across
sectors, whether they're
growth stocks or cyclicals."
(bullet) Foreign investments
totaled 18.3% of the fund's
investments at the end of
December, up from 11.2% six
months ago. The emphasis
lately has been on emerging
markets, mainly Mexico but
also Brazil and Argentina.
(bullet) 7% of the fund's
investments were bonds.
They provide income that
helps the fund achieve one of
its goals: to match the
dividend yield of the broader
market. Some also have the
potential to rise in price as
interest rates fall and foreign
currencies gain strength
relative to the dollar.
(bullet) The fund's cash position,
nearly 20% six months ago,
was 6.1% at the end of
December.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF DECEMBER 31, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
General Electric Co. 2.6 0.6
British Petroleum PLC ADR 2.0 0.5
Xerox Corp. 1.9 0.0
Philip Morris Companies, Inc. 1.7 0.0
Citicorp $5.375 1.6 0.0
CSX Corp. 1.1 0.0
Columbia Healthcare Corp. 1.1 0.0
HCA - Hospital Corporation of
America Class A 1.0 0.0
Murphy Oil Corp. 1.0 1.0
Goodyear Tire & Rubber Co. 0.9 0.0
TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Finance 11.3 6.3
Energy 10.2 13.4
Health 7.8 0.9
Durables 7.6 7.5
Media & Leisure 7.2 4.6
ASSET ALLOCATION
AS OF DECEMBER 31, 1993* AS OF JUNE 30, 1993**
Row: 1, Col: 1, Value: 6.1
Row: 1, Col: 2, Value: 7.0
Row: 1, Col: 3, Value: 86.90000000000001
Stocks 71.9%
Bonds 8.8%
Short-term
Investments 19.3%
Stocks 86.9%
Bonds 7.0%
Short-term
Investments 6.1%
Row: 1, Col: 1, Value: 19.3
Row: 1, Col: 2, Value: 8.800000000000001
Row: 1, Col: 3, Value: 71.90000000000001
* FOREIGN
INVESTMENTS 18.3%
** FOREIGN
INVESTMENTS 11.2%
INVESTMENTS DECEMBER 31, 1993 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 80.7%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE AND DEFENSE - 1.0%
AEROSPACE AND DEFENSE - 0.2%
Northrop Corp. 91,200 $ 3,409 66680710
DEFENSE ELECTRONICS - 0.8%
Loral Corp. 313,400 11,831 54385910
TOTAL AEROSPACE AND DEFENSE 15,240
BASIC INDUSTRIES - 4.0%
CHEMICALS AND PLASTICS - 2.4%
Betz Laboratories, Inc. 32,100 1,408 08777910
GEON 16,800 397 37246W10
Hercules, Inc. 115,600 13,063 42705610
IMC Fertilizer Group, Inc. 47,300 2,146 44966910
Imperial Chemical Industries PLC ADR 175,000 8,269 45270450
OM Group, Inc. (b) 145,800 3,007 67087210
Union Carbide Corp. 384,900 8,612 90558110
Vigoro Corp. 7,600 230 92675410
37,132
IRON AND STEEL - 0.7%
British Steel PLC ADR 80,000 1,480 11101530
Mannesmann AG 5,562 1,325 56311595
Mannesmann AG Ord. 22,500 5,469 56377510
Oregon Steel Mills, Inc. 109,300 2,746 68607910
11,020
METALS AND MINING - 0.9%
Alcan Aluminium Ltd. 243,900 5,121 01371610
De Beers Consolidated Mines Ltd. ADR 26,700 647 24025330
Outokumpu Oy Class A (b) 100,000 1,180 69099992
Phelps Dodge Corp. 105,400 5,138 71726510
Reynolds Metals Co. 44,200 2,006 76176310
14,092
TOTAL BASIC INDUSTRIES 62,244
CONGLOMERATES - 3.9%
Allied-Signal, Inc. 146,300 11,558 01951210
Brierley Investments Ltd. 366,900 283 10901410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONGLOMERATES - CONTINUED
Canadian Pacific Ltd. Ord. 495,000 $ 8,099 13644030
Dial Corp. (The) 170,700 6,892 25247010
Grupo Carso SA de CV (b) 772,600 8,432 40099594
Teledyne, Inc. 180,000 4,680 87933510
Textron, Inc. 224,400 13,071 88320310
United Technologies Corp. 120,000 7,440 91301710
60,455
CONSTRUCTION AND REAL ESTATE - 4.7%
BUILDING MATERIALS - 1.5%
Armstrong World Industries, Inc. 195,000 10,384 04247610
Cemex SA (b) 277,600 8,276 15299293
Lafarge Corp. 193,800 4,433 50586210
Tecumseh Products Co. 6,300 291 87889520
23,384
CONSTRUCTION - 0.9%
Centex Corp. 136,600 5,737 15231210
Lennar Corp. 55,000 1,877 52605710
Pulte Corp. 88,700 3,215 74586710
Redman Industries (b) 4,000 81 75764210
Toll Brothers, Inc. (b) 190,400 3,261 88947810
14,171
REAL ESTATE INVESTMENT TRUSTS - 2.3%
Burnham Pacific Properties, Inc. 103,839 1,778 12232C10
Crown American Realty Trust (SBI) 35,400 531 22818610
Developers Diversified Realty 10,225 299 25159110
Federal Realty Investment Trust 240,000 6,000 31374720
Health Care Property Investors, Inc. 167,800 4,551 42191510
Holly Residential Properties, Inc. 65,000 1,300 43602310
Kimco Realty Corporation 160,500 5,638 49446R10
McArthur/Glen Realty Corp. (b) 50,500 1,231 57918810
Merry Land & Investment Co., Inc. 188,000 3,760 59043810
Simon Properties Group, Inc. (b) 130,300 2,948 82880510
Southwestern Property Trust, Inc. 100,000 1,262 84573410
Vornado Realty Trust 86,000 2,881 92904210
Weingarten Realty Investors (SBI) 85,700 3,214 94874110
35,393
TOTAL CONSTRUCTION AND REAL ESTATE 72,948
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - 5.9%
AUTOS, TIRES, AND ACCESSORIES - 3.3%
Cooper Tire & Rubber Co. 227,000 $ 5,675 21683110
Dana Corp. 33,300 1,994 23581110
Federal-Mogul Corp. 36,700 1,064 31354910
General Motors Corp. 214,300 11,760 37044210
Goodyear Tire & Rubber Co. 288,900 13,217 38255010
Peugeot SA Ord. 4,900 652 71682510
Sime Darby Hong Kong Ltd. 474,000 865 82899392
Snap-on Tools Corp. 183,100 6,935 83303410
Valeo SA 23,800 5,191 91899010
Volkswagen AG (b) 16,000 4,050 92866210
51,403
CONSUMER ELECTRONICS - 0.9%
Harman International Industries, Inc. (b) 29,100 837 41308610
Newell Co. 182,700 7,377 65119210
Whirlpool Corp. 90,000 5,985 96332010
14,199
HOME FURNISHINGS - 0.4%
Leggett & Platt, Inc. 112,000 5,600 52466010
TEXTILES AND APPAREL - 1.3%
Donnkenny, Inc. (b) 20,000 375 25800610
Jones Apparel Group, Inc. (b) 84,800 2,533 48007410
Kellwood Co. 77,800 3,122 48804410
Mohawk Industries, Inc. (b) 202,850 6,948 60819010
Oshkosh B'Gosh, Inc. 53,800 1,049 68822220
Unifi, Inc. 201,700 5,421 90467710
VF Corp. 10,000 461 91820410
Westpoint Stevens, Inc. (b) 10,100 189 96123810
20,098
TOTAL DURABLES 91,300
ENERGY - 8.7%
COAL - 0.1%
Pittston Co. Minerals Group 64,400 1,538 72570120
ENERGY SERVICES - 1.8%
Daniel Industries, Inc. 2,400 31 23623510
Energy Service, Inc. (b) 276,500 899 29271910
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Enterra Corp. (b) 123,200 $ 2,526 29380510
Global Marine, Inc. (b) 800,000 3,300 37935240
Halliburton Co. 179,500 5,721 40621610
Marine Drilling Cos., Inc. (b) 187,700 1,079 56824020
McDermott International, Inc. 59,700 1,582 58003710
Nabors Industries, Inc. (b) 105,000 827 62956810
Offshore Pipelines, Inc. (b) 50,000 787 67626910
Reading & Bates Corp. (b) 66,800 468 75528180
Schlumberger Ltd. 144,000 8,514 80685710
Sundowner Offshore Services, Inc. (b) 155,400 2,020 86731410
27,754
OIL AND GAS - 6.8%
Anadarko Petroleum Corp. 205,600 9,329 03251110
Apache Corp. 57,800 1,351 03741110
Benton Oil & Gas Co. (b) 113,700 569 08328810
British Petroleum PLC ADR 481,700 30,829 11088940
Burlington Resources, Inc. 133,600 5,661 12201410
Cabot Oil & Gas Corp. Class A 90,600 1,914 12709710
Canadian Natural Resources Ltd. (b) 390,300 5,315 13638510
Kerr-McGee Corp. 178,500 8,055 49238610
Murphy Oil Corp. 389,200 15,568 62671710
Petro-Canada 363,000 3,296 71644E10
Renaissance Energy Ltd. (b) 322,000 6,882 75966610
Royal Dutch Petroleum Co. 50,000 5,219 78025770
Total Compagnie Francaise des Petroles Class B (b) 131,944 7,193
20434510
Unocal Corp. 81,300 2,266 91528910
Western Gas Resources, Inc. 65,300 2,139 95825910
105,586
TOTAL ENERGY 134,878
FINANCE - 9.1%
BANKS - 4.8%
BankAmerica Corp. 240,800 11,167 06605010
Bank of New York Co., Inc. 230,500 13,139 06405710
Chemical Banking Corp. 219,100 8,791 16372210
Citicorp (b) 351,500 12,918 17303410
First Fidelity Bancorporation 110,969 5,049 32019510
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Grupo Financiero Bancomer SA de CV sponsored
ADR, Series C (d) 91,500 $ 3,820 40048610
Mellon Bank Corp. 25,773 1,366 58550910
NationsBank Corp. 68,844 3,404 63858510
Paribas SA (Cie Financiere) (b) 64,100 5,370 73999192
Westpac Banking Corp. 2,962,100 9,288 96121410
74,312
CREDIT AND OTHER FINANCE - 2.5%
American Express Co. 231,500 7,148 02581610
Argentaria Corp. Bancaria de Espana (b) 86,900 3,667 21991392
Beneficial Corp. 202,000 7,726 08172110
Dean Witter Discover & Co. 186,689 6,464 24240V10
GFC Financial Corp. 289,200 8,387 36160910
Primerica Corp. 119,200 4,634 74158910
38,026
FEDERAL SPONSORED CREDIT - 0.9%
Federal Home Loan Mortgage Corporation 44,100 2,199 31340030
Federal National Mortgage Association 144,200 11,320 31358610
13,519
INSURANCE - 0.6%
Allstate Corp. (b) 227,400 6,708 02000210
NWNL Companies, Inc. 62,200 1,990 62945T10
8,698
SAVINGS AND LOANS - 0.3%
Commercial Federal Corp. (b) 243,500 4,840 20164710
TOTAL FINANCE 139,395
HEALTH - 7.8%
DRUGS AND PHARMACEUTICALS - 3.6%
Biogen, Inc. (b) 72,900 2,907 09059710
COR Therapeutics, Inc. (b) 208,100 3,147 21775310
Cell Genesys, Inc. (b) 43,500 848 15092110
Cellpro, Inc. (b) 51,300 1,783 15115610
Cephalon, Inc. (b) 122,000 1,998 15670810
Chiron Corp. (b) 54,400 4,570 17004010
Creative Biomolecules, Inc. (b) 241,600 2,507 22527010
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
DRUGS AND PHARMACEUTICALS - CONTINUED
Cytotherapeutics, Inc. (b) 61,400 $ 752 23292310
Elan PLC ADR (b) 150,300 6,369 28413120
Immulogic Pharmaceutical Corp. (b) 102,300 1,381 45252R10
Perspective Biosystems, Inc. (b) 57,400 1,650 71527110
Pfizer, Inc. 126,200 8,708 71708110
Protein Design Labs, Inc. (b) 67,900 1,647 74369L10
Schering-Plough Corp. 131,900 9,035 80660510
Vertex Pharmaceuticals, Inc. (b) 60,000 1,110 92532F10
Warner-Lambert Co. 116,400 7,857 93448810
56,269
MEDICAL EQUIPMENT AND SUPPLIES - 0.5%
McKesson Corp. 138,000 7,452 58155610
MEDICAL FACILITIES MANAGEMENT - 3.7%
Columbia Healthcare Corp. 489,245 16,267 19767910
HCA - Hospital Corporation of America Class A (b) 465,300 15,878
40412010
Health Management Associates, Inc. Class A (b) 87,000 2,545 42193310
Humana, Inc. 85,000 1,498 44485910
Intergroup Healthcare Corp. (b) 26,600 1,277 45868J10
Lincare Holdings, Inc. (b) 103,800 2,582 53279110
National Medical Enterprises, Inc. 395,700 5,540 63688610
U.S. Healthcare, Inc. 208,700 12,026 91191010
57,613
TOTAL HEALTH 121,334
INDUSTRIAL MACHINERY AND EQUIPMENT - 6.4%
ELECTRICAL EQUIPMENT - 4.1%
Alcatel Alsthom CGE SA 76,500 10,882 01390492
General Electric Co. 387,500 40,639 36960410
Hutchison Whampoa Ltd. Ord. 1,619,000 8,066 44841510
Philips Electronics 27,500 565 71833799
Philips Gloelampen NV (NY shs.) (b) 123,600 2,549 71833750
62,701
INDUSTRIAL MACHINERY AND EQUIPMENT - 2.3%
Caterpillar, Inc. 133,200 11,855 14912310
Deere & Co. 104,200 7,711 24419910
Indresco, Inc. (b) 309,400 4,796 45590510
Parker-Hannifin Corp. 50,000 1,888 70109410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY AND EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY AND EQUIPMENT - CONTINUED
TRINOVA Corp. 100,300 $ 3,147 89667810
Tenneco, Inc. 125,700 6,615 88037010
36,012
TOTAL INDUSTRIAL MACHINERY and EQUIPMENT 98,713
MEDIA AND LEISURE - 6.9%
BROADCASTING - 0.8%
Home Shopping Network, Inc. 185,400 2,758 43735110
Tele-Communications, Inc. Class A (b) 340,800 10,309 87924010
13,067
ENTERTAINMENT - 0.2%
Carnival Cruise Lines, Inc. Class A 31,800 1,506 14365810
Royal Caribbean Cruises Ltd. 69,300 1,854 78015392
3,360
LEISURE DURABLES AND TOYS - 0.1%
Swing-n-Slide Corp. (b) 63,800 829 87077510
LODGING AND GAMING - 3.1%
Four Seasons Hotels, Inc. 266,100 2,617 35100E10
Hospitality Franchise Systems, Inc. (b) 39,200 2,083 44091210
Host Marriott Corp. 546,700 4,989 44107810
La Quinta Motor Inns, Inc. 336,250 11,853 50419510
Marriott International, Inc. 289,900 8,407 57190010
Mirage Resorts, Inc. (b) 453,750 10,833 60462E10
Red Lion Inns LP 169,200 4,843 75670210
Sholodge, Inc. 72,900 1,677 82503410
47,302
PUBLISHING - 1.1%
American Greetings Corp. 158,500 5,389 02637510
Harcourt General, Inc. 23,900 866 41163G10
McGraw-Hill, Inc. 78,000 5,275 58064510
Times Mirror Co. 159,600 5,327 88736010
16,857
RESTAURANTS - 1.6%
McDonald's Corp. 208,600 11,890 58013510
Morrison Restaurants, Inc. 501,750 13,171 61847710
25,061
TOTAL MEDIA AND LEISURE 106,476
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - 3.4%
BEVERAGES - 0.2%
Canadaigua Wine Co. (b) 37,800 $ 1,191 13721920
Coca-Cola Company (The) 43,700 1,961 19121610
3,152
FOODS - 0.6%
ConAgra, Inc. 51,400 1,355 20588710
Dean Foods Co. 145,100 4,734 24236110
Tyson Foods, Inc. 119,700 2,873 90249410
8,962
HOUSEHOLD PRODUCTS - 0.8%
Colgate-Palmolive Co. 10,000 624 19416210
Maybelline, Inc. 150,200 3,511 57787510
Premark International, Inc. 58,000 4,654 74045910
Procter & Gamble Co. 65,800 3,751 74271810
Stanhome, Inc. 5,500 186 85442510
12,726
TOBACCO - 1.8%
Philip Morris Companies, Inc. 460,100 25,651 71815410
RJR Nabisco Holdings Corp. (b) 337,000 2,148 74960K10
27,799
TOTAL NONDURABLES 52,639
RETAIL AND WHOLESALE - 4.6%
APPAREL STORES - 0.4%
AnnTaylor Stores Corp. (b) 52,000 1,287 03611510
Limited, Inc. (The) 53,900 923 53271610
TJX Companies, Inc. 113,600 3,309 87254010
5,519
GENERAL MERCHANDISE STORES - 3.0%
Carter Hawley Hale Stores, Inc. (b) 284,000 2,698 14622730
Dayton Hudson Corp. 159,300 10,633 23975310
Kohls Corp. (b) 63,900 3,211 50025510
Meyer (Fred), Inc. (b) 184,900 6,656 59309810
Penney (J.C.) Co., Inc. 146,700 7,684 70816010
Price/Costco, Inc. 276,100 5,315 74143W10
Sears, Roebuck & Co. 190,200 10,033 81238710
46,230
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL AND WHOLESALE - CONTINUED
GROCERY STORES - 0.2%
Promodes SA Ord. 13,900 $ 2,614 74699692
RETAIL AND WHOLESALE, MISCELLANEOUS - 1.0%
Amway Asia Pacific Ltd. (b) 2,600 92 03299H22
Body Shop International PLC (b) 352,000 1,159 09679992
Brookstone, Inc. (b) 68,100 1,073 11453710
CML Group, Inc. 49,200 1,162 12582010
Duty Free International, Inc. 38,400 763 26708410
Little Switzerland, Inc. (b) 26,700 247 53752810
Pinault Printemps SA 20,100 3,409 72199393
Redoute (LA) 5,000 862 75799492
Toys "R" Us, Inc. (b) 177,800 7,268 89233510
16,035
TRADING COMPANIES - 0.0%
Li & Fung Ltd. 671,000 530 51899592
TOTAL RETAIL AND WHOLESALE 70,928
SERVICES - 2.0%
LEASING AND RENTAL - 0.9%
Blockbuster Entertainment Corp. 255,400 7,822 09367610
GATX Corp. 135,100 5,505 36144810
13,327
SERVICES - 1.1%
ADT Ltd. (b) 268,000 2,412 00091530
Ecolab, Inc. 151,900 6,835 27886510
Robert Half International, Inc. (b) 134,800 3,539 77032310
Supercuts, Inc. (b) 311,000 4,626 86805710
17,412
TOTAL SERVICES 30,739
TECHNOLOGY - 4.9%
COMMUNICATIONS EQUIPMENT - 0.6%
DSC Communications Corp. (b) 65,700 4,041 23331110
Nokia AB free shares 84,400 4,194 65599992
Porta Systems Corp. 36,600 361 73564710
8,596
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES AND SOFTWARE - 1.4%
Adobe Systems, Inc. 328,500 $ 7,309 00724F10
CompUSA, Inc. (b) 24,900 498 20493210
Manugistics Group, Inc. (b) 123,000 1,199 56501110
Micrografx, Inc. (b) 206,700 1,873 59507710
Microsoft Corp. (b) 45,000 3,628 59491810
Recognition Equipment, Inc. (b) 225,000 3,375 75623110
Sterling Software, Inc. (b) 114,800 3,257 85954710
21,139
COMPUTERS AND OFFICE EQUIPMENT - 2.4%
Diebold, Inc. 97,100 5,850 25365110
Hewlett-Packard Co. 14,400 1,138 42823610
Xerox Corp. 335,000 29,941 98412110
36,929
PHOTOGRAPHIC EQUIPMENT - 0.5%
Eastman Kodak Co. 148,800 8,333 27746110
TOTAL TECHNOLOGY 74,997
TRANSPORTATION - 4.1%
AIR TRANSPORTATION - 0.9%
Atlantic Coast Airlines, Inc. (b) 12,500 101 04839610
Mesa Airlines, Inc. (b) 236,600 4,200 59048110
UAL Corp. (b) 66,500 9,709 90254910
14,010
RAILROADS - 2.8%
Burlington Northern, Inc. 88,400 5,116 12189710
CSX Corp. 201,200 16,297 12640810
Conrail, Inc. 173,900 11,629 20836810
Santa Fe Pacific Corp. 410,000 9,123 80218310
Southern Pacific Rail Corp. (b) 48,400 956 84358410
43,121
TRUCKING AND FREIGHT - 0.4%
TNT Freightways Corp. 209,850 5,666 87259J10
TOTAL TRANSPORTATION 62,797
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - 3.3%
CELLULAR - 0.4%
Vodafone Group PLC 668,100 $ 5,857 92857T92
ELECTRIC UTILITY - 1.4%
Entergy Corp. 230,000 8,280 29364F10
Philadelphia Electric Co. 196,200 5,935 71753710
Texas Utilities Co. 67,292 2,910 88284810
Veba Vereinigte Elektrizetaets & Bergwerks AG Ord. 15,600 4,685
92239110
21,810
GAS - 0.5%
Coastal Corp. (The) 8,400 236 19044110
Panhandle Eastern Corp. 93,700 2,214 69846210
Williams Companies, Inc. 193,200 4,709 96945710
7,159
TELEPHONE SERVICES - 1.0%
Davel Communications Group, Inc. (b) 1,000 15 23833810
Southwestern Bell Corp. 115,100 4,777 84533310
Telebras ON 18,500,000 496 95499795
Telebras PN (Pfd. Reg.) 220,000,000 7,500 95499792
U.S. West, Inc. 78,400 3,596 91288910
16,384
TOTAL UTILITIES 51,210
TOTAL COMMON STOCKS
(Cost $1,151,496) 1,246,293
CONVERTIBLE PREFERRED STOCKS - 6.2%
CONSTRUCTION AND REAL ESTATE - 0.1%
REAL ESTATE - 0.1%
Rouse Co. 30,500 1,639 77927320
DURABLES - 1.3%
AUTOS, TIRES, AND ACCESSORIES - 1.3%
Chrysler Corp., Series A, $4.625 (d) 77,700 11,655 17119670
Ford Motor Co. (Del.), Series A, $4.20 77,500 8,409 34537020
20,064
CONVERTIBLE PREFERRED STOCKS - CONTINUED
VALUE (NOTE 1)
SHARES (000S)
ENERGY - 1.5%
ENERGY SERVICES - 0.5%
Chiles Offshore Corp. $1.50 176,000 $ 4,004 16888720
McDermott International, Inc. $2.875, Series C (d) 65,000 3,120 58003730
7,124
OIL AND GAS - 1.0%
Snyder Oil $6.00 186,900 5,046 83348240
Unocal Corp. $3.50 (b)(d) 190,000 10,735 91528920
15,781
TOTAL ENERGY 22,905
FINANCE - 1.6%
BANKS - 1.6%
Citicorp $5.375 (d) 226,400 24,904 17303451
NONDURABLES - 0.7%
TOBACCO - 0.7%
RJR Nabisco Holdings Corp., Series A, depositary shares
representing 1/4 share 1,570,900 10,996 74960K40
TECHNOLOGY - 0.4%
COMPUTER SERVICES AND SOFTWARE - 0.4%
Ceridian Corp. 116,800 5,898 15677T40
TRANSPORTATION - 0.0%
TRUCKING AND FREIGHT - 0.0%
TNT Ltd. 8% 168,300 251 93599293
UTILITIES - 0.6%
GAS - 0.3%
Enron Corp., Series J, $10.50 10,800 4,235 29356160
TELEPHONE SERVICES - 0.3%
LCI International $1.25 164,500 4,730 50181320
TOTAL UTILITIES 8,965
TOTAL CONVERTIBLE PREFERRED STOCKS
(Cost $91,589) 95,622
CORPORATE BONDS - 3.2%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
CONVERTIBLE BONDS - 1.3%
CONSTRUCTION AND REAL ESTATE - 0.0%
REAL ESTATE INVESTMENT TRUSTS - 0.0%
Centerpoint Properties 8.22%, 1/15/04 - $ 297 $ 297 151895AA
DURABLES - 0.1%
TEXTILES AND APPAREL - 0.1%
Interface, Inc. 8%, 9/15/13 Ba3 2,110 2,226 458665AA
FINANCE - 0.6%
BANKS - 0.6%
Bank of New York Co., Inc. 7 1/2%, 8/15/01 Baa1 1,920 3,130 064057AK
C.S. Holdings euro 4 7/8%, 11/19/02 A2 4,170 6,359 175997AC
9,489
CREDIT AND OTHER FINANCE - 0.0%
CTII Overseas Finance 4 1/4%, 11/18/98 (d) - 310 329 126995AA
TOTAL FINANCE 9,818
TECHNOLOGY - 0.6%
COMPUTER SERVICES AND SOFTWARE - 0.2%
Sterling Software, Inc. 5 3/4%, 2/1/03 B1 2,720 3,230 859547AD
COMPUTERS AND OFFICE EQUIPMENT - 0.4%
Media Vision Technology, Inc. 4 7/8%,
10/1/03 B3 3,660 5,124 58445HAA
TOTAL TECHNOLOGY 8,354
TOTAL CONVERTIBLE BONDS 20,695
NONCONVERTIBLE BONDS - 1.9%
AEROSPACE AND DEFENSE - 0.1%
DEFENSE ELECTRONICS - 0.1%
Trancor, Inc. 10 7/8%, 8/15/01 B2 1,500 1,571 892349AC
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
BASIC INDUSTRIES - 0.3%
CHEMICALS AND PLASTICS - 0.3%
IMC Fertilizer Group, Inc. 9 1/4%, 10/1/00 B3 $ 5,000 $ 5,025 449669AH
DURABLES - 0.3%
TEXTILES AND APPAREL - 0.3%
Westpoint Stevens 9 3/8%, 12/15/05 B3 5,000 5,050 961238AB
INDUSTRIAL MACHINERY AND EQUIPMENT - 0.3%
Joy Technologies, Inc. 10 1/4%, 9/1/03 B1 3,600 3,753 481206AD
MEDIA AND LEISURE - 0.3%
LODGING AND GAMING - 0.3%
Host Marriott Corp.:
9 1/8%, 12/1/00 B1 1,000 1,017 441080AD
9 7/8%, 5/1/01 B1 350 357 441080AE
10 1/2%, 5/1/06 B1 750 771 441080AH
Red Roof Inns 9 5/8%, 12/15/03 (d) B3 2,000 2,035 757005AA
4,180
NONDURABLES - 0.3%
BEVERAGES - 0.3%
Canandaigua Wine, Inc. 8 3/4%, 12/15/03 B1 5,000 5,025 137219AB
UTILITIES - 0.3%
ELECTRIC UTILITY - 0.3%
ESKOM 11%, 6/1/08 - ZAR 18,000 3,954 28599AAA
TOTAL NONCONVERTIBLE BONDS 28,558
TOTAL CORPORATE BONDS
(Cost $47,537) 49,253
FOREIGN GOVERNMENT OBLIGATIONS - 3.8%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
Federal Republic of Germany 6 1/2%, 7/15/03 - DEM 46,000 $ 27,883
093992AU
French Government:
BTAN 8 1/2%, 3/12/97 Aaa FRF 33,000 6,147 351996AS
OAT 8 1/2%, 11/25/02 Aaa FRF 10,000 2,028 3517779U
Republic of South Africa 12%, 2/28/05 - ZAR 49,480 11,668 760998AB
Spanish Government 10.9%, 8/30/03 Aa2 ESP 1,300,000 10,711 84699AAL
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $57,778) 58,437
REPURCHASE AGREEMENTS - 6.1%
MATURITY
AMOUNT (000S)
Investments in repurchase agreements,
(U.S. Treasury obligations), in a
joint trading account at 3.23%
dated 12/31/93 due 1/3/94 $93,820 93,795
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,442,195) $ 1,543,400
FORWARD FOREIGN CURRENCY CONTRACTS
AMOUNTS IN THOUSANDS SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO BUY
21,833 DKK 1/19/94 $ 3,207 $ 27
93,954 FRF 1/14/94 15,851 (21)
TOTAL CONTRACTS TO BUY
(Payable amount $19,052) $ 19,058 $ 6
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 1.2%
CONTRACTS TO SELL
646,338 BEF 1/14/94 $ 17,800 $ 310
54,160 DEM 1/19/94 to 2/15/94 31,077 745
21,833 DKK 1/19/94 3,207 64
2,359,130 ESP 1/14/94 16,439 1,226
172,867 FRF 1/14/94 29,164 1,095
TOTAL CONTRACTS TO SELL
(Receivable amount $101,127) $ 97,687 $ 3,440
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 6.3%
CURRENCY TYPE ABBREVIATIONS
BEF - Belgian franc
DKK - Danish Kroner
FRF - French franc
DEM - German Deutsche mark
ESP - Spanish Peseta
ZAR - South African rand
LEGEND
1. Principal amount stated in United States dollars unless otherwise noted.
2. Non-income producing
3. Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
4. 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 $56,598,000 or 3.6% of net
assets.
OTHER INFORMATION
Distribution of investments by country, as a percentage of total value of
investment in securities, is as follows:
United States 81.7%
United Kingdom 3.2
Germany 2.9
France 2.9
Canada 2.0
Mexico 1.3
Netherlands 1.1
Others (individually less than 1%) 4.9
TOTAL 100.0%
INCOME TAX INFORMATION
At December 31, 1993, the aggregate cost of investment securities for
income tax purposes was $1,442,641,000. Net unrealized appreciation
aggregated $100,759,000, of which $128,104,000 related to appreciated
investment securities and $27,345,000 related to depreciated investment
securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) DECEMBER 31, 1993 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 1,543,400
agreements of $93,795) (cost $1,442,195) (Notes 1
and 2) - See accompanying schedule
Long foreign currency contracts held, at value (cost 19,058
$19,052) (Note 2)
Short foreign currency contracts (Note 2) $ (97,687)
Contracts held, at value
Receivable for contracts held 101,127 3,440
Receivable for investments sold 38,476
Net receivable for closed foreign currency contracts 460
Receivable for fund shares sold 13,217
Dividends receivable 2,919
Interest receivable 2,215
Other receivables 894
TOTAL ASSETS 1,624,079
LIABILITIES
Payable for foreign currency contracts held (Note 2) 19,052
Payable for investments purchased 38,367
Payable for fund shares redeemed 4,862
Accrued management fee 524
Other payables and accrued expenses 383
Collateral on securities loaned, at value (Note 5) 5,427
TOTAL LIABILITIES 68,615
NET ASSETS $ 1,555,464
Net Assets consist of (Note 1):
Paid in capital $ 1,414,968
Distributions in excess of net investment income (748)
Accumulated undistributed net realized gain (loss) on 36,593
investments
Net unrealized appreciation (depreciation) on:
Investment securities 101,205
Foreign currency contracts 3,446
NET ASSETS, for 80,723 shares outstanding $ 1,555,464
NET ASSET VALUE, offering price and redemption price per $19.27
share ($1,555,464 (divided by) 80,723 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED DECEMBER 31, 1993 (UNAUDITED)
INVESTMENT INCOME $ 12,293
Dividends
Interest (including security lending fees of $44) (Note 5) 5,052
TOTAL INCOME 17,345
EXPENSES
Management fee (Note 4) $ 3,080
Transfer agent fees (Note 4) 1,387
Accounting and security lending fees (Note 4) 308
Non-interested trustees' compensation 4
Custodian fees and expenses 143
Registration fees 35
Audit 40
Legal 17
Miscellaneous 14
Total expenses before reductions 5,028
Expense reductions (Note 6) (204) 4,824
NET INVESTMENT INCOME 12,521
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1, 2 AND 3)
Net realized gain (loss) on:
Investment securities 121,624
Foreign currency contracts (4,177) 117,447
Change in net unrealized appreciation (depreciation) on:
Investment securities (15,656)
Foreign currency contracts 2,378 (13,278)
NET GAIN (LOSS) 104,169
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 116,690
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS SIX MONTHS YEAR ENDED
ENDED ENDED DECEMBER
DECEMBER JUNE 30, 31,
31, 1993 1992
1993
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 12,521 $ 20,327 $ 31,653
Net investment income
Net realized gain (loss) on investments 117,447 109,914 73,372
Change in net unrealized appreciation (13,278) (6,164) 2,968
(depreciation) on investments
NET INCREASE (DECREASE) IN NET ASSETS 116,690 124,077 107,993
RESULTING FROM OPERATIONS
Distributions to shareholders from: (16,555) (15,445) (33,522)
Net investment income
Net realized gain (179,779) (4,886) (40,532)
TOTAL DISTRIBUTIONS (196,334) (20,331) (74,054)
Share transactions 219,446 152,814 373,113
Net proceeds from sales of shares
Reinvestment of distributions from: 12,907 11,772 24,965
Net investment income
Net realized gain 154,302 4,147 34,111
Cost of shares redeemed (191,029) (187,111) (431,811)
Net increase (decrease) in net assets resulting 195,626 (18,378) 378
from share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 115,982 85,368 34,317
NET ASSETS
Beginning of period 1,439,482 1,354,114 1,319,797
End of period (including under (over) $ 1,555,464 $ 1,439,482 $ 1,354,114
distribution of net investment income of
$(748), $16,897 and $12,015, respectively)
OTHER INFORMATION
Shares
Sold 11,070 7,688 19,893
Issued in reinvestment of distributions from: 670 587 1,327
Net investment income
Net realized gain 8,084 209 1,816
Redeemed (9,602) (9,496) (23,022)
Net increase (decrease) 10,222 (1,012) 14
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS SIX MONTHS SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED ENDED
DECEMBER 31, JUNE 30,
1993
(UNAUDITED) 1993(diamond) 1992(diamond) 1991 1990 1989 1988
</TABLE>
<TABLE>
<CAPTION>
<S>
<C> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, beginning of period
$ 20.42 $ 18.94 $ 18.46 $ 16.29 $ 17.93 $ 15.42 $ 13.58
Income from Investment Operations
Net investment income
.16 .29(triangle) .45 .53 .70(double dagger) .67 .55
Net realized and unrealized gain (loss) on investments
1.39 1.48 1.09 3.29 (1.60) 3.69 1.85
Total from investment operations
1.55 1.77 1.54 3.82 (.90) 4.36 2.40
Less Distributions
From net investment income
(.22) (.22) (.48) (.50) (.74) (.68) (.56)
From net realized gain on investments
(2.48) (.07) (.58) (1.15) - (1.17) -
Total distributions
(2.70) (.29) (1.06) (1.65) (.74) (1.85) (.56)
Net asset value, end of period
$ 19.27 $ 20.42 $ 18.94 $ 18.46 $ 16.29 $ 17.93 $ 15.42
TOTAL RETURN (dagger)
8.21% 9.39% 8.46% 24.15% (5.10)% 28.80% 17.85%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in millions)
$ 1,555 $ 1,439 $ 1,354 $ 1,320 $ 1,064 $ 1,087 $ 892
Ratio of expenses to average net assets
.63%*# .66%* .67% .68% .66% .64% .67%
Ratio of expenses to average net assets before voluntary expense
.66%*# .66%* .67% .68% .66% .64% .67%
limitation
Ratio of net investment income to average net assets
1.64%* 2.94%*(triangle) 2.37% 2.84% 4.04%(double dagger) 3.76% 3.69%
Portfolio turnover rate
235%* 261%* 151% 267% 259% 191% 175%
</TABLE>
* ANNUALIZED (dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE
NOT ANNUALIZED. (diamond) AS OF JANUARY 1, 1992, THE FUND DISCONTINUED THE
USE OF EQUALIZATION ACCOUNTING. (double dagger) INVESTMENT INCOME PER SHARE
REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.06 PER SHARE. (triangle)
INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM IMPERIAL
CHEMICAL INDUSTRIES PLC ADR WHICH AMOUNTED TO $.06 PER SHARE. # SEE NOTE 6
OF NOTES TO FINANCIAL STATEMENTS.
29
SEMIANNUAL REPORT
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1993 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Fund(the fund) is a fund of Fidelity Hastings Street 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. On November 19, 1992, the Trustees approved a
change in the fiscal year of the fund to June 30. 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 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 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, other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
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 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 as earned. Investment income is recorded net of
foreign taxes where recovery of such taxes is not assured.
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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions, market discount, partnerships, non-taxable
dividends and 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 differences relating to shareholder distributions will result
in reclassifications to paid in capital.
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.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective July 1,
1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of June 30, 1993 have been reclassified to reflect
an increase in paid in capital of $132,120,000, a decrease in undistributed
net investment income of $13,611,000 and a decrease in accumulated net
realized gain on investments of $118,509,000.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
underlying securities remains at least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $1,772,960,000 and $1,645,730,000, respectively, of which U.S.
government and government agency obligations aggregated $49,595,000 and
$108,440,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
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 ranging from
.31% to .52% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .09%.
For the period, the management fee was equivalent to an annualized rate of
.40% of average net assets.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $6,000 for the
period.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the fund's accounting
records and administers the security lending program. The security lending
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
ACCOUNTING AND SECURITY LENDING FEES - CONTINUED
fee is based on the number and duration of lending transactions. The
accounting 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 $1,009,000 for the period.
5. SECURITY LENDING.
The fund loaned securities to certain brokers who paid the fund negotiated
lenders' fees. These fees are included in interest income. The fund
receives U.S. Treasury obligations and/or cash as collateral against the
loaned securities, in an amount at least equal to 102% of the market value
of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 100% of the market value of the loaned
securities during the period of the loan. At period end, the value of the
securities loaned and the value of collateral amounted to $5,246,000 and
$5,427,000, respectively.
6. 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
$204,000 under this arrangement.
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. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO WRITE FIDELITY
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. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
32 West Central Boulevard
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
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 *
Peter S. Lynch
Edward H. Malone *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
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
FIDELITY'S GROWTH AND INCOME FUNDS
Balanced Fund
Convertible Securities Fund
Equity-Income Fund
Equity-Income II Fund
Fidelity Fund
Global Balanced Fund
Growth & Income Portfolio
Market Index Fund
Puritan Fund
Real Estate Investment Portfolio
Utilities Income 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)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
