SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-1A
REGISTRATION STATEMENT (No. 2-11517)
UNDER THE SECURITIES ACT OF 1933 [ ]
Pre-Effective Amendment No. [ ]
Post-Effective Amendment No. 94 [x]
and
REGISTRATION STATEMENT UNDER THE INVESTMENT
COMPANY ACT OF 1940 [x]
Amendment No. [ ]
Fidelity Hastings Street Trust
(Exact Name of Registrant as Specified in Charter)
82 Devonshire St., Boston, Massachusetts 02109
(Address Of Principal Executive Offices)
Registrant's Telephone Number, Including Area Code: 617-570-7000
Arthur S. Loring, Esq., 82 Devonshire Street, Boston, Massachusetts 02109
(Name and Address of Agent for Service)
It is proposed that this filing will become effective:
( ) Immediately upon filing pursuant to paragraph (b)
( x ) On May 16, 1994 pursuant to paragraph (b)
( ) 60 days after filing pursuant to paragraph (a)
( ) On pursuant to paragraph (a) of Rule 485
Registrant has filed a declaration pursuant to Rule 24f-2 under the
Investment Company Act of 1940 and intends to file the notice required by
such Rule before August 31, 1994.
FIDELITY FIFTY
SUPPLEMENT TO THE PROSPECTUS DATED AUGUST 31, 1993
FINANCIAL HIGHLIGHTS. The following information supplements the
information set forth in the Prospectus. The table reports selected data
for a share outstanding throughout the period September 17, 1993
(commencement of operations) to December 31, 1993:
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SEPTEMBER 17,
1993
(COMMENCEMENT
OF OPERATIONS) TO
DECEMBER 31, 1993
(UNAUDITED)
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 10.00
Income from Investment Operations
Net investment income .01
Net realized and unrealized gain (loss) on investments .73
Total from investment operations .74
Net asset value, end of period $ 10.74
TOTAL RETURN (dagger)(double dagger) 7.40%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 651,007
Ratio of expenses to average net assets ** 1.40%*
Ratio of expenses to average net assets before expense reductions ** 1.41%*
Ratio of net investment income to average net assets .19%*
Portfolio turnover rate 161%*
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* ANNUALIZED
** SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
(dagger) THE TOTAL RETURN DOES NOT INCLUDE THE ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
(double dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD THE ADVISER
NOT REDUCED CERTAIN EXPENSES DURING THE
PERIOD SHOWN.
The following information replaces the fifth paragraph under the heading
"Share Price" on page 9.
The fund's sales charge may be reduced if you invest directly with Fidelity
or through prototype or prototype-like retirement plans sponsored by FMR or
FMR
Corp. Purchases made with assistance or intervention from a financial
intermedi
FIF-94-2 (page 1 of 3) June 1, 1994
ary are not eligible. The amount you invest, plus the value of your
account, must fall within the ranges shown below. Call Fidelity to see if
your purchase qualifies.
Ranges Sales charge Net amount
invested
$0 - 249,999 3% 3.09%
$250,000 - 499,999 2% 2.04%
$500,000 - 999,999 1% 1.01%
$1,000,000 or more none none
The sales charge will also be reduced by the percentage of any sales charge
you previously paid on investments in other Fidelity funds (not including
Fidelity's Foreign Currency Funds). Similarly, your shares carry credit for
any sales charge you would have paid if the reductions in the table above
had not been available. These sales charge credits only apply if you
continuously owned Fidelity fund shares or a Fidelity brokerage core
account, or participated in The CORPORATEplan for Retirement Program, and
only to purchases made in one of the following ways: (i) by exchange from
another Fidelity fund; (ii) with proceeds of a transaction within a
Fidelity brokerage core account, including any free credit balance, core
money market fund, or margin availability, to the extent such proceeds were
derived from redemption proceeds from another Fidelity fund; (iii) with
redemption proceeds from one of Fidelity's Foreign Currency Funds, if the
Foreign Currency Fund shares were originally purchased with redemption
proceeds from a Fidelity fund; (iv) through the Directed Dividends Option
(see page 13); or (v) by participants in The CORPORATEplan for Retirement
Program when shares are purchased through plan-qualified loan repayments,
and for exchanges into and out of the Managed Income Portfolio.
The following language replaces similar language found in item numbers
(7) and (10) on page 10.
(7) if you are a current or former trustee or officer of a Fidelity fund or
a current or retired officer, director, or regular employee of FMR Corp. or
its direct or indirect subsidiaries (a fidelity Trustee or employee), the
spouse of a Fidelity Trustee or employee, a Fidelity Trustee or employee
acting as custodian for a minor child, or a person acting as trustee of a
trust for the sole benefit of the minor child of a Fidelity Trustee or
employee; ... (10) if you are a registered investment adviser (RIA)
purchasing for your discretionary accounts, provided you execute a Fidelity
RIA load waiver agreement which specifies certain aggregate minimum and
operating provisions. Except for correspondents of National Financial
Services Corporation, this waiver is available only for shares purchased
directly from Fidelity, and is unavailable if the RIA is part of an
organization principally engaged in the brokerage business.
(page 2 of 3)
The following language supplements that found in the sixth paragraph
under the heading "Share Price" found on page 9.
The fund's sales charge will not apply... (12) if you invest through a
non-prototype pension or profit-sharing plan that maintains all of its
mutual fund assets in Fidelity mutual funds, provided the plan executes a
Fidelity non-prototype sales charge waiver request form confirming its
qualification.
The following language replaces that found in the seventh paragraph
under the heading "Share Price" on page 9.
These waivers must be qualified through FDC in advance. More detailed
information about waivers (1), (2), (5), (9), and (10) is contained in the
Statement of Additional Information. A representative of your plan or
organization should call Fidelity for more information.
The following information supplements the ninth paragraph under the heading
"Share Price" on page 10.
Effective February 1, 1994, the sales charge paid to qualified recipients
will be 2.25% of the fund's offering price
(page 3 of 3)
FIDELITY FIFTY
CROSS REFERENCE SHEET
FORM N-1A
ITEM NUMBER PROSPECTUS SECTION
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1................................... Cover Page
...
2a.................................. Expenses
..
b, Contents; The Fund at a Glance; Who May Want to
c................................ Invest
3a.................................. Financial Highlights
..
*
b...................................
.
Performance
c,d.................................
.
4a Charter
i.................................
The Fund at a Glance; Investment Principles and
ii............................... Risks
b................................... Investment Principles and Risks
..
Who May Want to Invest; Investment Principles and
c.................................... Risks
5a.................................. Charter
..
b(i)................................ Cover Page, The Fund at a Glance, Charter, Doing
.. Business with Fidelity
Charter
(ii).................................
Expenses; Breakdown of Expenses
(iii)................................
Charter
c....................................
Charter; Breakdown of Expenses
d...................................
.
Cover Page; Charter
e....................................
Expenses
f....................................
g(i)................................ Charter
..
(ii)................................. *
..
5A................................. Performance
.
6a Charter
i.................................
How to Buy Shares; How to Sell Shares; Transaction
ii................................ Details; Exchange Restrictions
Charter
iii...............................
*
b...................................
.
Transaction Details; Exchange Restrictions
c....................................
*
d...................................
.
Doing Business with Fidelity; How to Buy Shares;
e.................................... How to Sell Shares; Investor Services
f,g................................. Dividends, Capital Gains, and Taxes
..
7a.................................. Cover Page; Charter
..
Expenses; How to Buy Shares; Transaction Details
b...................................
.
Sales Charge Reductions and Waivers
c....................................
How to Buy Shares
d...................................
.
*
e....................................
f Breakdown of Expenses
...................................
8................................... How to Sell Shares; Investor Services; Transaction
... Details; Exchange Restrictions
9................................... *
...
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* Not Applicable
FIDELITY FIFTY
A Fund of Fidelity Hastings Street Trust
82 Devonshire Street
Boston, Massachusetts 02109
PROSPECTUS
August 31, 1993
(bullet) <>THE FUND page 2
(bullet) <>SHAREHOLDER'S MANUAL page 8
Fidelity Fifty seeks capital appreciation by investing primarily in equity
securities of domestic and foreign companies. The fund will invest in 50-60
stocks under normal conditions and is designed for aggressive investors.
Please read this Prospectus before investing. It is designed to provide you
with information and to help you decide if the fund's goals match your own.
Retain this document for future reference.
A Statement of Additional Information (dated August 31, 1993) for the fund
has been filed with the Securities and Exchange Commission and is
incorporated herein by reference. This free Statement is available upon
request from Fidelity Distributors Corporation (FDC) at 1-800-544-8888.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF (OR ENDORSED OR
GUARANTEED BY) ANY BANK, NOR ARE THEY FEDERALLY INSURED OR OTHERWISE
PROTECTED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC), THE FEDERAL
RESERVE BOARD, OR ANY OTHER AGENCY.
THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES
AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE
SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION
PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION
TO THE CONTRARY IS A CRIMINAL OFFENSE.
TABLE OF CONTENTS
Summary of Fund Expenses 2
Investment Objective and Policies 3
Distributions and Taxes 6
Fidelity Fifty and the Fidelity Organization 6
Management and Service Fees 7
How to Buy Shares 8
Distribution Options 13
Exchange Privilege 13
Fidelity Money Line 14
Fidelity Automatic Account Builder 14
Tax-Sheltered Retirement Plans 15
How to Redeem Shares 16
Appendix 18
FIF-pro-893
1.THE FUND
2.SUMMARY OF FUND EXPENSES
The expense summary format below was developed for use by all mutual funds
to help you make your investment decisions. Of course, you should consider
this expense information along with other important information, including
the fund's investment objective.
A. SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Load Imposed on Purchases (as a percentage of offering price)
3.00 %
Maximum Sales Load Imposed on Reinvested Dividends None
Deferred Sales Load Imposed on Redemptions None
Redemption Fee None
Exchange Fee None
B. ANNUAL FUND OPERATING EXPENSES (as a percentage of average net assets)
Management Fee .63 %
12b-1 Fee None
Other Expenses .74 %
TOTAL FUND OPERATING EXPENSES 1.37 %
C. EXAMPLE
1 YEAR 3 YEARS
You would pay the following expenses on a $1,000
investment in the fund assuming (1) a 5% annual return
and (2) full redemption at the end of each time period: $44 $72
EXPLANATION OF TABLE. The purpose of the table is to assist you in
understanding the various costs and expenses that an investor in the fund
would bear directly or indirectly.
A. SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy or
sell shares of the fund. A 3% sales load will be imposed on purchases. If
you exchange shares of the fund or direct dividends into another Fidelity
fund, charges may be imposed by the other fund. Please refer to the
sections entitled "Share Price" on page 9, and "Distribution Options" and
"Exchange Privilege" on page 13, for an explanation of how and when these
charges apply.
B. ANNUAL FUND OPERATING EXPENSES are based on the fund's estimated
expenses for its first year of operation. A portion of the brokerage
commissions that the fund pays may be used to reduce fund expenses. This
would make the actual expenses higher than they appear in the table.
Management fees are paid by the fund to Fidelity Management & Research
Company (FMR) for managing its investments and business affairs and will
vary based on performance. The fund incurs other expenses for maintaining
shareholder records, furnishing shareholder statements and reports, and for
other services. Management fees and other expenses are reflected in the
fund's share price or dividends and are not charged directly to individual
accounts. Please refer to the section entitled "Management and Service
Fees" on page 7 for further information.
C. EXAMPLE OF EXPENSES. The hypothetical example illustrates the expenses
associated with a $1,000 investment in the fund over periods of one and
three years, based on the expenses in the table above and an assumed annual
rate of return of 5%. THE RETURN OF 5% AND EXPENSES SHOULD NOT BE
CONSIDERED INDICATIONS OF ACTUAL OR EXPECTED FUND PERFORMANCE OR EXPENSES,
BOTH OF WHICH MAY VARY.
3.HOW THE FUND WORKS
INVESTMENT OBJECTIVE AND POLICIES
The investment objective of Fidelity Fifty is to seek capital appreciation.
There is no assurance that the fund will achieve its investment objective.
Fidelity Fifty is a non-diversified fund that seeks capital appreciation by
investing primarily in equity securities of domestic and foreign companies
that FMR believes have the greatest potential for growth. The fund may
invest in all types of equity securities, including common and preferred
stock and securities that are convertible into common or preferred stock.
Normally the fund will be invested in 50-60 stocks.
In selecting investments for the fund, FMR, the fund's manager, will
utilize both fundamental analysis and quantitative techniques. The basis
for security selection will be fundamental, qualitative research used to
identify companies with superior prospects for capital appreciation.
Additionally, statistical models will be used to help evaluate growth
potential, valuation, liquidity, and investment risk of equity securities
being considered for the fund. The resulting portfolio will be invested in
issues FMR believes offer strong opportunities for capital appreciation,
are attractively valued, and are complementary with respect to portfolio
risk.
The fund may make substantial temporary defensive investments in
investment-grade debt securities and money market instruments when market
conditions warrant.
OTHER INVESTMENT PRACTICES. Please refer to the Appendix for more
information on investments the fund may make, including foreign
investments, options and futures contracts, swap agreements, indexed
securities, illiquid investments, restricted securities, repurchase
agreements and securities loans, and interfund borrowing. The fund may also
invest in warrants.
MATCHING THE FUND TO YOUR INVESTMENT NEEDS
Fidelity Fifty is designed for aggressive growth investors who want a
mutual fund that invests in relatively few companies. Because the fund is
designed to focus on a small number of stocks, the impact of a change in
value of a stock holding is enhanced. A non-diversified fund may have
greater investments in a single issuer than a diversified fund, and, as a
result, changes in the financial condition of a single issuer may have a
greater effect on the fund's share value.
By itself, the fund does not constitute a balanced investment plan; it
stresses capital appreciation from common stocks and should be considered a
long-term investment. The fund may be appropriate for investors who can
afford to ride out the effects of changes in the stock market, and who can
handle greater potential share price volatility. The fund's share price and
total return fluctuate, and your investment may be worth more or less than
your original cost when you redeem your shares.
INVESTMENT LIMITATIONS
The following summarizes the fund's principal investment limitations. A
complete listing is contained in the Statement of Additional Information.
1. To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of its total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "government securities" as defined for federal tax purposes.
2. (a) The fund may borrow money solely for temporary or emergency
purposes, but not in an amount exceeding 33 1/3% of its total assets. (b)
The fund may borrow money only from banks or from other funds advised by
FMR or its affiliates, or by engaging in reverse repurchase agreements. (c)
The fund will not purchase securities when borrowings exceed 5% of its
total assets. If the fund borrows money, its share price may be subject to
greater fluctuation until the borrowing is paid off. To this extent,
purchasing securities when borrowings are outstanding may involve an
element of leverage.
3. (a) The fund may temporarily lend its portfolio securities to
broker-dealers and institutions, but only when the loans are fully
collateralized. (b) The fund may also make cash loans to other funds
advised by FMR in an amount not exceeding 5% of its assets. (c) Loans, in
the aggregate, will be limited to 33 1/3% of the fund's total assets.
4. The fund will not purchase a security if, as a result, more than 10% of
its assets would be invested in illiquid securities.
Except for the fund's investment objective and limitations 2(a) and 3(c),
the fund's policies and limitations described in this Prospectus are not
fundamental and may be changed without shareholder approval.
These limitations and the policies discussed in "How the Fund Works" are
considered at the time of purchase; the sale of securities is not required
in the event of a subsequent change in circumstances.
PORTFOLIO TRANSACTIONS
FMR uses various brokerage firms to carry out the fund's portfolio
transactions. FMR chooses broker-dealers by judging professional ability
and quality of service. Since FMR places a large number of transactions,
including those of Fidelity's other funds, the fund pays commissions lower
than those paid by individual investors. Also, the fund incurs lower costs
than those incurred by individuals when purchasing debt securities.
The fund has authorized FMR to allocate transactions to some broker-dealers
who help distribute the fund's shares or shares of Fidelity's other funds,
and on an agency basis to Fidelity Brokerage Services, Inc. (FBSI) and
Fidelity Brokerage Services, Ltd. (FBSL), affiliates of FMR. FMR will make
such allocations if commissions are comparable to those charged by
non-affiliated, qualified broker-dealers for similar services.
FMR may also allocate brokerage transactions to the fund's custodian,
acting as a broker-dealer, or other broker-dealers, so long as transaction
quality is comparable to that of other qualified broker-dealers, where the
broker-dealer will credit a portion of the commissions paid toward payment
of the fund's expenses. These expenses currently include transfer agent
fees paid to Fidelity Service Co. and custodian fees.
Higher commissions may be paid to firms that provide research services to
the extent permitted by law. FMR also is authorized to allocate brokerage
transactions to FBSI in order to secure from FBSI research services
produced by third party, independent entities. FMR may use this research
information in managing the fund's assets, as well as the assets of other
clients.
The frequency of portfolio transactions - the fund's portfolio turnover
rate - will vary from year to year depending on market conditions. The
fund's annualized portfolio turnover rate is not expected to exceed 300%
for its first fiscal period ending June 30, 1994. Because a high turnover
rate increases transaction costs and may increase taxable capital gains,
FMR carefully weighs the anticipated benefits of short-term investing
against these consequences.
PERFORMANCE
The fund's performance may be quoted in advertising in terms of total
return. Total returns are based on historical results and are not intended
to indicate future performance.
TOTAL RETURNS are based on the overall dollar or percentage change in value
of a hypothetical investment in the fund, including changes in share price,
and assume all of the fund's dividends and capital gain distributions are
reinvested. A CUMULATIVE TOTAL RETURN reflects the fund's performance over
a stated period of time. An AVERAGE ANNUAL TOTAL RETURN reflects the
hypothetical annually compounded return that would have produced the same
cumulative total return if the fund's performance had been constant over
the entire period. Because average annual returns tend to smooth out
variations in the fund's returns, you should recognize that they are not
the same as actual year-by-year results. When the fund quotes an average
annual return covering a period of less than one year, the calculation
assumes that performance will remain constant for the rest of the year.
Since this may or may not occur, the average annual returns should be
viewed as hypothetical rather than actual performance figures. Both types
of total return usually will include the effect of paying the fund's 3%
sales charge; of course, total returns will be higher if the sales charge
is not taken into account. To illustrate the components of overall
performance, the fund may separate its cumulative and average annual
returns into income results and capital gain or loss.
The fund may quote its total returns on a before-tax or after-tax basis.
Other illustrations of performance may show moving averages over specified
periods.
4.DISTRIBUTIONS AND TAXES
DISTRIBUTIONS. The fund distributes substantially all of its net investment
income and capital gains to shareholders each year, normally in August and
December.
FEDERAL TAXES. Distributions from the fund's income and short-term capital
gains are taxed as dividends, and long-term capital gain distributions are
taxed as long-term capital gains. A portion of the fund's dividends may
qualify for the dividends-received deduction for corporations. The fund's
distributions are taxable when they are paid, whether you take them in cash
or reinvest them in additional shares, except that distributions declared
in December and paid in January are taxable as if paid on December 31. The
fund will send you a tax statement by January 31 showing the tax status of
the distributions you received in the past year, and will file a copy with
the Internal Revenue Service (IRS).
CAPITAL GAINS. You may realize a capital gain or loss when you redeem
(sell) or exchange shares of the fund. For most types of accounts, the fund
will report the proceeds of your redemptions to you and the IRS annually.
However, because the tax treatment also depends on your purchase price and
your personal tax position, you should keep your regular account statements
to use in determining your tax.
"BUYING A DIVIDEND." On the record date for a distribution, the fund's
share price is reduced by the amount of the distribution. If you buy shares
just before the record date ("buying a dividend"), you will pay the full
price for the shares, and then receive a portion of the price back as a
taxable distribution.
OTHER TAX INFORMATION. In addition to federal taxes, you may be subject to
state or local taxes on your investment, depending on the laws in your
area. When you sign your account application, you will be asked to certify
that your Social Security or taxpayer identification number is correct and
that you are not subject to 31% backup withholding for failing to report
income to the IRS. If you violate IRS regulations, the IRS can require the
fund to withhold 31% of your taxable distributions and redemptions.
5.FIDELITY FIFTY AND THE FIDELITY ORGANIZATION
Fidelity Fifty is a non-diversified fund of Fidelity Hastings Street Trust
(the trust), an open-end management investment company originally organized
as a Massachusetts corporation on May 1, 1930 under the name Fidelity Fund,
and reorganized as a Massachusetts business trust on December 31, 1984. The
trust's name was changed to Fidelity Hastings Street Trust on April 30,
1993. A Board of Trustees supervises the fund's activities and reviews
contractual arrangements with companies that provide the fund with
services. Currently, there are two funds of the trust. As a Massachusetts
business trust, the trust is not required to hold annual shareholder
meetings, although special meetings may be called for a specific fund or
the trust as a whole for purposes such as electing or removing Trustees,
changing fundamental policies, or approving a management contract. Each
fund votes separately on matters affecting only that fund. As a
shareholder, you receive one vote for each share you own.
Fidelity Investments is one of America's largest investment management
organizations and has its principal business address at 82 Devonshire
Street, Boston, Massachusetts. It includes a number of different companies
that provide a variety of financial services and products. The fund employs
various Fidelity companies to perform activities required for its
operation.
FMR, the fund's manager, is the original Fidelity company, founded in 1946.
It provides a number of mutual funds and other clients with investment
research and portfolio management services. It maintains a large staff of
experienced investment personnel and a full complement of related support
facilities. As of June 30, 1993, FMR advised funds having more than 12
million shareholder accounts with a total value of more than $175 billion.
Fidelity Management & Research (U.K.) Inc. (FMR U.K.) and Fidelity
Management & Research (Far East) Inc. (FMR Far East), sub-advisers to
the fund, are wholly owned subsidiaries of FMR formed in 1986 to provide
research and investment advice with respect to foreign securities. FMR U.K.
and FMR Far East have their principal business offices in London and Tokyo,
respectively.
Scott Stewart has been portfolio manager of Fidelity Fifty since it began
in September, 1993. He also manages various institutional accounts. Mr.
Stewart joined Fidelity in 1987.
FDC distributes shares for the Fidelity funds. FMR Corp. is the parent
company for the Fidelity companies. Through ownership of voting common
stock, Edward C. Johnson 3d (President and a Trustee of the trust), Johnson
family members, and various trusts for the benefit of the Johnson family
form a controlling group with respect to FMR Corp.
6.MANAGEMENT AND SERVICE FEES
For managing its investments and business affairs, the fund pays a monthly
fee to FMR made up of a basic fee and a performance adjustment. The annual
basic fee rate is the sum of two components:
1. A group fee rate based on the monthly average net assets of all of the
mutual funds advised by FMR. This rate cannot rise above .52%, and it drops
(to as low as a marginal rate of .30%) as total assets in all of these
funds rise. The effective group fee rate for June 1993 was .3286%.
2. An individual fund fee rate of .30%.
One-twelfth of the annual management fee rate is applied to the fund's net
assets averaged over the most recent month, giving a dollar amount, which
is the basic fee for that month.
The performance adjustment rate, also calculated monthly, is based on a
comparison of the fund's performance to that of the Standard & Poor's
500 Composite Stock Price Index (the Index), a widely recognized, unmanaged
index of common stock prices over the most recent 36-month period. The
difference is translated into a dollar amount that is added to or
subtracted from the basic fee. This adjustment rewards FMR when the fund
outperforms the Index and reduces FMR's fee when the fund underperforms the
Index. The maximum annualized performance adjustment rate is + .20%. The
fund's performance adjustment will not take effect until the twelfth month
of the performance period.
FMR has entered into sub-advisory agreements with FMR U.K. and FMR Far East
pursuant to which FMR U.K. and FMR Far East provide research and investment
recommendations with respect to companies based outside the United States.
FMR U.K. focuses primarily on companies based in Europe; FMR Far East
focuses primarily on companies based in Asia and the Pacific Basin. Under
the sub-advisory agreements, FMR pays FMR U.K. and FMR Far East fees equal
to 110% and 105%, respectively, of each sub-adviser's costs incurred in
connection with its sub-advisory agreement.
Fidelity Service Co. (FSC) acts as the fund's transfer and dividend-paying
agent and maintains the fund's shareholder records. The fund pays FSC
transfer agent fees based on the type, size, and number of accounts in the
fund, and the number of monetary transactions made by shareholders. The
fund also pays FSC to calculate its daily share price, to maintain its
general accounting records, and to administer its securities lending
program. The fees for pricing and bookkeeping services are based on the
fund's average net assets, but must fall within a range of $45,000 to
$750,000 per year. The fees for securities lending services are based on
the number and duration of individual securities loans.
FMR may, from time to time, agree to reimburse the fund for management fees
and other expenses above a specified percentage of average net assets. FMR
retains the ability to be repaid by the fund for expense reimbursements if
expenses fall below the limit prior to the end of the fiscal year.
7.SHAREHOLDER'S MANUAL
8.OPENING AN ACCOUNT
You can buy shares of the fund in several ways, which are described here
and in the chart below. You will find an application at the back of this
manual. Unless you already have a Fidelity mutual fund account, you must
complete and sign the application. Additional paperwork may be required
from corporations, associations, and certain fiduciaries. The fund does not
issue share certificates. If you have any questions or need extra forms,
call Fidelity at 1-800-544-8888, 24 hours a day, seven days a week. TDD
service, for the hearing impaired, is available daily from 9:00 a.m. to
9:00 p.m. Eastern time at 1-800-544-0118.
To invest in any of Fidelity's tax-sheltered retirement plans, please call
1-800-544-8888 to obtain information and the required separate application.
9.HOW TO BUY SHARES
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METHOD INITIAL (minimum) INVESTMENT ADDITIONAL (minimum)
INVESTMENT
BY MAIL $2,500 $250
Please make your check payable Please make your check payable
to the name of the fund and mail to the name of the fund. Indicate
it to THE ADDRESS INDICATED ON THE your account number on the
APPLICATION. check and mail it to THE ADDRESS
PRINTED ON YOUR ACCOUNT
STATEMENT.
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AT AN INVESTOR CENTER Visit the Investor Center nearest you to make investments by check.
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FOR ALL OPTIONS BELOW, PLEASE CALL 1-800-544-7777.
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BY EXCHANGE $2,500 $250
(from an account in one of
Fidelity's other funds)
When opening an account by exchange, your new account must be established with the same name(s),
address, and taxpayer identification number as your existing Fidelity account.
BY WIRE $2,500 $250
Federal funds should be wired to: Bankers Trust Company, Bank Routing No. 021001033, Account No.
00163053, together with the name of the fund, your account number, and your name(s).
BY FIDELITY MONEY LINE Not available $250
</TABLE>
You must have received prior notification by mail from FSC that your
Fidelity Money Line is active. The maximum transaction amount is $50,000.
SHARE PRICE
The term "net asset value," or NAV, refers to the worth of one share. The
fund's NAV is computed by adding the value of all of its investments, cash,
and other assets, deducting liabilities, and then dividing the result by
the number of shares outstanding. The price of one share (the offering
price) represents the share's NAV plus a sales charge (currently 3% of the
offering price or 3.09% of the net amount invested). The fund is open for
business each day the New York Stock Exchange (NYSE) is open. FSC normally
calculates the fund's NAV (and offering price) as of the close of business
of the NYSE (normally 4:00 p.m. Eastern time).
If you send $2,500 and the next offering price calculated after it is
accepted is $10, you will buy 250 shares. You will pay a sales charge of
$.30 per share and the value of your investment will be $2,425.
Portfolio securities and other assets are valued primarily on the basis of
market quotations or, if quotations are not readily available, by a method
that the Board of Trustees believes accurately reflects fair value. Foreign
securities are valued on the basis of quotations from the primary market in
which they are traded, and are translated from the local currency into U.S.
dollars using current exchange rates.
You may be eligible for a sales charge reduction if your purchase meets
certain conditions. The fund's 3% sales charge will not apply to shares
acquired through reinvestment of your dividends and capital gain
distributions, or in connection with the fund's merger with or acquisition
of any investment company or trust.
In certain cases, the fund's sales charge may be reduced to reflect sales
charges previously paid in connection with investments in other Fidelity
funds. The sales charge will be reduced in this manner for shares purchased
(i) by exchange from another Fidelity fund; (ii) with proceeds of a
transaction within a Fidelity brokerage core account, including any free
credit balance, core money market fund, or margin availability, to the
extent such proceeds were derived from redemption proceeds from another
Fidelity fund; (iii) with redemption proceeds from one of Fidelity's
Foreign Currency Portfolios, if the Foreign Currency Portfolio shares were
originally purchased with redemption proceeds from a Fidelity fund; (iv)
through the Directed Dividends Option (see page 13); or (v) by participants
in The CORPORATEplan for Retirement Program when shares are purchased
through plan-qualified loan repayments and for exchanges into and out of
the Managed Income Portfolio. If your purchase meets these conditions, the
fund's sales charge will be reduced by the percentage sales charges (if
any) you previously paid for purchases and sales of other Fidelity funds
(excluding Fidelity's Foreign Currency Portfolios). For example, if you
purchase shares by exchange and have previously paid 2% in sales charges on
the shares you are exchanging, you will pay a 1% sales charge to purchase
shares of the fund. The availability of a sales charge reduction is
contingent upon the continuous ownership of Fidelity fund shares, a
Fidelity brokerage core account, or participation in The CORPORATEplan for
Retirement Program, as noted above.
The fund's sales charge will not apply (1) if you buy shares as part of an
employee benefit plan having more than 200 eligible employees or a minimum
of $3,000,000 in plan assets invested in Fidelity mutual funds (plan
sponsors are encouraged to notify Fidelity when they first satisfy either
of these requirements); (2) to shares in a Fidelity IRA account purchased
with the proceeds of a distribution from an employee benefit plan, provided
that, at the time of the distribution, the employer or its affiliate
maintained a plan that both qualified for exemption (1) and had at least
some of its assets invested in Fidelity-managed products; (3) if you are a
charitable organization (as defined in Section 501(c)(3) of the Internal
Revenue Code) investing $100,000 or more; (4) if you purchase shares for a
charitable remainder trust or life income pool established for the benefit
of a charitable organization (as defined by Section 501(c)(3) of the
Internal Revenue Code); (5) if you are an investor participating in the
Fidelity Trust Portfolios program; (6) to shares purchased through
Portfolio Advisory Services; (7) if you are a current or former Trustee or
officer of a Fidelity fund or a current or retired officer, director, or
full-time employee of FMR Corp. or its direct or indirect subsidiaries (a
Fidelity Trustee or employee), the spouse of a Fidelity Trustee or
employee, a Fidelity Trustee or employee acting as custodian for a minor
child, or a person acting as trustee of a trust for the sole benefit of the
minor child of a Fidelity Trustee or employee; (8) if you are a bank trust
officer, registered representative, or other employee of a Qualified
Recipient, as defined below; (9) to contributions and exchanges to a
prototype or prototype-like retirement plan sponsored by FMR Corp. or FMR
and that is marketed and distributed directly to plan sponsors or
participants without any assistance or intervention from any intermediary
distribution channel; (10) if you are a registered investment adviser (RIA)
purchasing for your discretionary accounts, provided you execute a Fidelity
RIA load waiver agreement which specifies certain aggregate minimum and
operating provisions. This waiver is available only for shares purchased
directly from Fidelity, without a broker, and is unavailable if the RIA is
part of an organization principally engaged in the brokerage business; or
(11) if you are a trust institution or bank trust department purchasing for
your non-discretionary, non-retirement fiduciary accounts, provided you
execute a Fidelity Trust load waiver agreement which specifies certain
aggregate minimum and operating provisions. This waiver is available only
for shares purchased either directly from Fidelity or through a
bank-affiliated broker, and is unavailable if the trust department or
institution is part of an organization not principally engaged in banking
or trust activities.
Exemptions (1) through (11) must be qualified through FDC in advance. More
detailed information about exemptions (1), (2), (5), and (9) is contained
in the Statement of Additional Information. A representative of your plan
or organization should call Fidelity for more information.
FDC collects the proceeds from the fund's 3% sales charge and may pay a
portion of them to securities dealers who have sold the fund's shares, or
to others, including banks and other financial institutions, under special
arrangements in connection with FDC's sales activities (Qualified
Recipients). The sales charge paid to Qualified Recipients is 2.75% of the
fund's offering price. FDC may, at its own expense, provide promotional
incentives to Qualified Recipients who support the sale of shares of the
fund without reimbursement from the fund. In some instances, these
incentives may be offered only to certain institutions whose
representatives provide services in connection with the sale or expected
sale of significant amounts of shares.
The Glass-Steagall Act generally prohibits federally and state chartered or
supervised banks from engaging in the business of underwriting, selling, or
distributing securities. Although the scope of this prohibition under the
Glass-Steagall Act has not been fully defined, in FDC's opinion it should
not prohibit banks from being paid for shareholder servicing and
recordkeeping. If, because of changes in law or regulation, or because of
new interpretations of existing law, a bank or the fund were prevented from
continuing these arrangements, it is expected that other arrangements would
be made for these services and that shareholders would not suffer adverse
financial consequences. In addition, state securities laws on this issue
may differ from the interpretations of federal law expressed herein, and
banks and other financial institutions may be required to register as
dealers pursuant to state law.
INVESTMENT REQUIREMENTS TO REMEMBER
Before you buy shares, please read the following information to make sure
your investment is accepted and credited properly. Your purchase will be
processed at the offering price based on the next NAV calculated after your
order is received and accepted by FSC. All of your purchases must be made
in U.S. dollars and checks must be drawn on U.S. banks. No cash will be
accepted. If you make a purchase with more than one check, each check must
have a value of at least $50, and the minimum investment requirement shown
on the chart still applies. The fund reserves the right to limit the number
of checks processed at one time. If your check does not clear, your
purchase will be canceled and you could be liable for any losses or fees
incurred. When you purchase by check or via Fidelity Money Line, the fund
can hold payment on redemptions until it is reasonably satisfied that the
investment has been collected (which can take up to seven days).
You can avoid this collection period by purchasing shares by bank wire or
Direct Deposit. Bank wire may be used to transfer funds on the Federal
Reserve wire system from your bank to your Fidelity account. Your bank may
charge you a fee for this service. Direct Deposit, established through your
employer, allows you to transfer all or a portion of your paycheck via the
Automated Clearing House network to your Fidelity account. Social Security
checks may also be transferred to your Fidelity account via Direct Deposit.
See page 15 for further details on Direct Deposit.
You may initiate many transactions by telephone. Note that Fidelity will
not be responsible for any losses resulting from unauthorized transactions
if it follows reasonable procedures designed to verify the identity of the
caller. Fidelity will request personalized security codes or other
information, and may also record calls. You should verify the accuracy of
your confirmation statements immediately after you receive them. If you do
not want the ability to redeem and exchange by telephone, call Fidelity for
instructions.
You may buy shares of the fund (at the offering price) or sell them through
a broker, who may charge you a fee for this service. If you are purchasing
shares of the fund through a program of services offered or administered by
a securities dealer or financial institution, you should read the program
materials in conjunction with this Prospectus. Certain features of the
fund, such as the minimum initial or subsequent investment, may be modified
in these programs and administrative charges may be imposed for the
services rendered.
Certain financial institutions that have entered into sales agreements with
FDC may enter confirmed purchase orders on behalf of customers by phone,
with payment to follow no later than the fund's pricing on the following
business day. If payment is not received by such time, the financial
institution could be held liable for resulting fees or losses.
The fund reserves the right to suspend the offering of shares for a period
of time. The fund also reserves the right to reject any specific purchase
order, including certain purchases by exchange. (See the section entitled
"Exchange Privilege" below.) Purchase orders may be refused if, in FMR's
opinion, they are of a size that would disrupt management of the fund.
10.SHAREHOLDER SERVICES
FIDELITY TELEPHONE CONNECTION
Use your touch-tone phone for quick, confidential access to frequently
requested information. Call 1-800-544-8544 for Fidelity mutual fund quotes
and 1-800-544-7544 for account balances and last transaction information.
See the back of your quarterly statement for a complete list of Fidelity's
telephone numbers.
DISTRIBUTION OPTIONS
When you fill out your account application, you can choose from the
following distribution options:
A. The SHARE OPTION reinvests your income dividends and capital gain
distributions in additional shares. This option will be assigned
automatically if you make no choice on your account application.
B. The INCOME-EARNED OPTION reinvests your capital gain distributions and
pays your income dividends in cash. This option is not listed on your
account application; call or write Fidelity to learn more or to change your
distribution option.
C. With the CASH OPTION you receive both income dividends and capital gain
distributions in cash.
On the day the fund goes ex-dividend, the amount of the distribution is
deducted from its share price. Cash distribution checks will be mailed
within seven days.
D. You may choose the DIRECTED DIVIDENDS(Registered trademark) OPTION to
have distributions from this fund automatically invested in another
Fidelity fund. Note that distributions may only be directed to an existing
account with a registration identical to your account in the fund and that
sales charges and restrictions may apply. Distributions directed from this
fund to another fund will carry credit for the fund's 3% sales charge. If
you direct distributions to a fund with a 3% sales charge, you will not
pay a sales charge on your directed dividends purchase. This option is not
listed on your account application; call or write Fidelity to learn more or
to change your distribution option.
EXCHANGE PRIVILEGE
You may exchange between Fidelity funds as your needs change. As a
shareholder, you have the privilege of exchanging your shares for shares of
other Fidelity funds registered in your state, as long as, in FMR's
opinion, the funds will not be adversely affected by your exchanges. To
make an exchange, follow the procedures indicated in the "How to Buy
Shares" and "How to Redeem Shares" charts. Before you make an exchange,
please note the following:
(bullet) Call Fidelity at 1-800-544-8888 to obtain a prospectus for the
fund into which you want to exchange. Read the prospectus for relevant
information.
(bullet) You may only exchange between accounts that are registered in the
same name, address, and taxpayer identification number.
(bullet) If you exchange into a fund with a sales charge, you pay the
percentage difference between that fund's sales charge and any sales charge
you have previously paid in connection with the shares you are exchanging.
For example, if you had already paid a sales charge of 2% on your shares
and you exchanged them into a fund with a 3% sales charge, you would pay an
additional 1% sales charge.
(bullet) TAXES. Each exchange represents the sale of shares of one fund
and the purchase of shares of another, which may produce a gain or loss for
tax purposes. FSC will send you written confirmation of each exchange
transaction.
(bullet) RESTRICTIONS. Although the exchange privilege is an important
benefit, fund performance and shareholders can be hurt by excessive
trading. To protect the interests of shareholders, the fund reserves the
right to temporarily or permanently terminate the exchange privilege for
any person who makes more than four exchanges out of the fund per calendar
year. Accounts under common ownership or control, including accounts with
the same taxpayer identification number, will be aggregated for purposes of
the four exchange limit. In addition, the fund reserves the right to refuse
exchange purchases by any person or group if, in FMR's judgment, the fund
would be unable to invest effectively in accordance with its investment
objective and policies, or would otherwise potentially be adversely
affected. Your exchanges may be restricted or refused if the fund receives
or anticipates simultaneous orders affecting significant portions of the
fund's assets. In particular, a pattern of exchanges that coincide with a
"market timing" strategy may be disruptive to the fund. Although the fund
will attempt to give you prior notice whenever it is reasonably able to do
so, it may impose these restrictions at any time. The fund reserves the
right to terminate or modify the exchange privilege in the future. Other
funds may have different exchange restrictions and may impose
administrative fees of up to $7.50 and redemption fees of up to 1.50% on
exchanges. Check each fund's prospectus for details.
(bullet) The exchange limit may be modified for accounts in certain
institutional retirement plans to conform to plan exchange limits and
Department of Labor regulations. See your plan materials for further
information.
FIDELITY AUTOMATIC EXCHANGE SERVICE
Fidelity Automatic Exchange Service is a convenient method of arranging
monthly, bi-monthly, quarterly, or yearly investments (minimum $100) in the
fund by exchange from an existing, identically registered money market fund
account. Call Fidelity to learn more or to change your Fidelity Automatic
Exchange Service option.
FIDELITY MONEY LINE(Registered trademark)
Fidelity Money Line lets you authorize electronic transfers of money to buy
or sell shares of the fund. You can use Fidelity Money Line to move money
between your bank account and your fund account with one phone call. Allow
two to three business days after the call for the transfer to take place.
For money recently invested, allow normal check- clearing time (up to seven
days) before redemption proceeds are sent to your bank.
FIDELITY AUTOMATIC ACCOUNT BUILDERSM
Fidelity Automatic Account Builder offers a simple way to maintain a
regular investment program. You may arrange automatic transfers (minimum
$100 per transaction) from your bank account to your fund account on a
periodic basis. You may change the amount of your investment, skip an
investment, or stop Fidelity Automatic Account Builder by calling Fidelity
(1-800-544-6666) at least three business days prior to your next scheduled
investment date.
If you have purchased shares of the fund through a Fidelity retirement
plan, you may use Fidelity Money Line or Fidelity Automatic Account Builder
to make regular contributions to your retirement account. To arrange for
systematic redemptions from your regular or retirement account, call
Fidelity for further information.
DIRECT DEPOSIT
If your employer offers Direct Deposit, you may arrange to automatically
purchase shares of the fund (minimum $100) each pay period. Note that it
may not be appropriate to Direct Deposit your entire paycheck to a fund
(such as Fidelity Fifty) with a fluctuating NAV. Call Fidelity for more
information or a Direct Deposit Authorization Form.
TAX-SHELTERED RETIREMENT PLANS
Retirement plans are among the best tax breaks available to individuals.
Call Fidelity at 1-800-544-8888 for complete information kits discussing
the plans and their benefits, provisions, and fees. Fidelity can set up
your new account in the fund under one of several tax-sheltered plans.
These plans let you invest for retirement and shelter your investment
income from current taxes. Minimums may differ from those listed in the
chart on page 8.
(bullet) INDIVIDUAL RETIREMENT ACCOUNTS (IRAS): retirement plans that
allow anyone between 18 and 70 1/2 years of age with earned income to
contribute up to $2,000 per tax year. You may make contributions of up to
$250 per year in the name of your spouse, if your spouse has no earned
income.
(bullet) ROLLOVER IRAS: tax-deferred retirement plans that may retain the
special tax advantages of lump sum distributions from qualified retirement
plans.
(bullet) SEP-IRAS: Simplified Employee Pension Plans designed to provide
those with self-employed income (and any eligible employees) with many of
the same advantages as a Keogh, but with fewer administrative requirements.
(bullet) KEOGH OR CORPORATE PROFIT-SHARING AND MONEY-PURCHASE PLANS: open
to self-employed individuals and their partners, or to corporations, to
benefit themselves and their employees.
(bullet) 403(B) CUSTODIAL ACCOUNTS: available to employees of most
non-profit organizations and public schools.
(bullet) 401(K) PROGRAM: open to corporations of all sizes. The program
allows participants to contribute a percentage of their wages on a
tax-deferred basis (i.e., up to $8,994, adjusted annually to reflect
changes in the cost of living).
STATEMENTS AND REPORTS
FSC will send you a confirmation statement after every transaction (except
a reinvestment of dividends or capital gains) that affects your share
balance or your account registration. In addition, an account statement
will be mailed to you quarterly. At least twice a year you will receive the
fund's financial statements with a summary of its investments and
performance. To reduce expenses, only one copy of most shareholder reports
(such as the fund's Annual Report) may be mailed to your household. Please
call Fidelity if you need additional copies.
The fund pays for shareholder services, but not for special services such
as producing and mailing historical account documents. You may be required
to pay fees for special services.
11.HOW TO REDEEM SHARES
To ensure acceptance of your redemption request, please follow the
procedures described here and in the chart on page 17. You may redeem all
or a portion of your shares on any business day. Your shares will be
redeemed at the next NAV calculated after FSC has received and accepted
your redemption request. Provided that your account registration has not
changed within the last 30 days, you may redeem shares of the fund worth
$100,000 or less by calling 1-800-544-7777. Redemption proceeds will be
sent to the record address. Requests for redemptions from a Fidelity IRA or
Retirement Plan account must be sent to Fidelity in writing. Remember that
the fund may hold payment on redemptions until it is reasonably satisfied
that investments made by check or via Fidelity Money Line have been
collected (which may take up to seven days.)
12.HOW TO REDEEM SHARES
<TABLE>
<CAPTION>
<S> <C>
BY MAIL TO: Send a "letter of instruction:" a letter specifying the
FIDELITY INVESTMENTS name of the fund, the number of shares to be
P.O. BOX 878 redeemed, your name, your account number, and the
BOSTON, MA 02103-0878 additional requirements listed below that apply to
your particular account.
TYPE OF REGISTRATION REQUIREMENTS
Individual, Joint Tenant, Sole Proprietorship, Letter of instruction signed by all persons authorized
Custodial (Uniform Gifts or Transfers To to sign for the account, exactly as it is registered,
Minors Act), General Partner accompanied by signature guarantee(s).*
Corporation, Association Letter of instruction accompanied by a corporate
resolution. The letter must be signed by at least one
individual authorized (via corporate resolution) to act
on the account. The corporate resolution must include
a corporate seal or signature guarantee.*
Trust Letter of instruction signed by the Trustee(s) (as
Trustee(s)), with signature guarantee(s).* (If the
Trustee's name is not registered on the account,
provide a copy of the trust document, certified within
the last 60 days.)
</TABLE>
If you do not fall into any of these registration categories (i.e.,
executors, administrators, conservators, or guardians), please call
Fidelity for further instructions.
* A signature guarantee is a widely accepted way to protect you and FSC by
verifying the signature on your request; it may not be provided by a notary
public. The following institutions should be able to provide you with a
signature guarantee: banks, brokers, dealers, credit unions (if authorized
under state law), securities exchanges and associations, clearing agencies,
and savings associations.
<TABLE>
<CAPTION>
<S> <C>
FOR ALL OPTIONS BELOW, PLEASE CALL 1-800-544-7777.
BY EXCHANGE You must meet the minimum investment requirement
of the other fund. You can only exchange between
accounts with identical names, addresses, and
taxpayer identification numbers.
BY FIDELITY MONEY LINE You must have received prior notification by mail
from FSC that your Fidelity Money Line is active.
The minimum redemption amount is $2,500; the
maximum redemption amount is $100,000.
(Accounts cannot be closed by this service.)
</TABLE>
BY WIRE You must have applied for the wire feature on your
account application. You will be notified that this
feature is active and you may then make wire
redemptions by calling before 4:00 p.m. Eastern time.
Your money will be wired to your bank on the next
business day. The minimum redemption amount is
$5,000.
REDEMPTION REQUIREMENTS TO REMEMBER
If you want to keep your account open, please leave shares with a value of
at least $1,000 in it. If your account balance falls below $1,000 due to
redemption, your account may be closed and the proceeds mailed to you at
the record address. You will be given 30 days' notice that your account
will be closed unless you make an additional investment to increase your
account balance to the $1,000 minimum. Your shares will be redeemed at the
NAV on the day your account is closed.
Once your shares are redeemed, the proceeds normally will be sent to you on
the next business day, but if making immediate payment could adversely
affect the fund, it may take up to seven days to pay you. Fidelity Money
Line redemptions generally will be credited to your bank account on the
second or third business day after your phone call. The fund may suspend
redemptions or postpone payment dates on days when the NYSE is closed
(other than weekends or holidays), when trading on the NYSE is restricted,
or as permitted by the SEC. If you are unable to execute your transaction
by telephone (for example, during periods of unusual market activity),
consider placing your order by mail or by visiting one of the Fidelity
Investor Centers. If you place a request to redeem shares at a Fidelity
Investor Center, provided that your request is in good order, Fidelity will
process your redemption at the next NAV calculated and will mail a check
for the proceeds to the record address.
13.APPENDIX
The following paragraphs provide a brief description of securities in which
the fund may invest and transactions it may make. The fund is not limited
by this discussion, however, and may purchase other types of securities and
enter into other types of transactions if they are consistent with the
fund's investment objective and policies.
FOREIGN INVESTMENTS. The fund may invest in foreign securities, which
involve additional risks. Foreign securities and securities denominated in
or indexed to foreign currencies may be affected by the strength of foreign
currencies relative to the U.S. dollar, or by political or economic
developments in foreign countries. Foreign companies may not be subject to
accounting standards or governmental supervision comparable to U.S.
companies, and there may be less public information about their operations.
In addition, foreign markets may be less liquid or more volatile than U.S.
markets, and may offer less protection to investors such as the fund. These
risks are typically greater for investments in less-developed countries
whose governments and financial markets may be more susceptible to adverse
political and economic developments. FMR considers these factors in making
investments for the fund. There is no limitation on the amount of the
fund's assets that may be invested in foreign securities or in any one
country or currency.
The fund may enter into currency forward contracts (agreements to exchange
one currency for another at a future date) to manage currency risks and to
facilitate transactions in foreign securities. Although currency forward
contracts can be used to protect the fund from adverse exchange rate
changes, they involve a risk of loss if FMR fails to predict foreign
currency values correctly.
OPTIONS AND FUTURES CONTRACTS. The fund may buy and sell options and
futures contracts to manage its exposure to changing interest rates,
security prices, and currency exchange rates. Some options and futures
strategies, including selling futures, buying puts, and writing calls, tend
to hedge the fund's investments against price fluctuations. Other
strategies, including buying futures, writing puts, and buying calls, tend
to increase market exposure. Options and futures may be combined with each
other or with forward contracts in order to adjust the risk and return
characteristics of the overall strategy. The fund may invest in options and
futures based on any type of security, index, or currency, including
options and futures traded on foreign exchanges and options not traded on
exchanges.
Options and futures can be volatile investments, and involve certain risks.
If FMR applies a hedge at an inappropriate time or judges market conditions
incorrectly, options and futures strategies may lower the fund's return.
The fund could also experience losses if the prices of its options and
futures positions were poorly correlated with its other investments, or if
it could not close out its positions because of an illiquid secondary
market.
The fund will not hedge more than 25% of its total assets by selling
futures, buying puts, and writing calls under normal conditions. In
addition, the fund will not buy futures or write puts whose underlying
value exceeds 25% of its total assets, and will not buy calls with a value
exceeding 5% of its total assets.
SWAP AGREEMENTS. As one way of managing its exposure to different types of
investments, the fund may enter into interest rate swaps, currency swaps,
and other types of swap agreements such as caps, collars, and floors. In a
typical interest rate swap, one party agrees to make regular payments equal
to a floating interest rate times a "notional principal amount," in return
for payments equal to a fixed rate times the same amount, for a specified
period of time. If a swap agreement provides for payments in different
currencies, the parties might agree to exchange the notional principal
amount as well. Swaps may also depend on other prices or rates, such as the
value of an index or mortgage prepayment rates.
Swap agreements are sophisticated hedging instruments that typically
involve a small investment of cash relative to the magnitude of risks
assumed. As a result, swaps can be highly volatile and may have a
considerable impact on the fund's performance. Swap agreements are subject
to risks related to the counterparty's ability to perform, and may decline
in value if the counterparty's creditworthiness deteriorates. The fund may
also suffer losses if it is unable to terminate outstanding swap agreements
or reduce its exposure through offsetting transactions.
INDEXED SECURITIES. The fund may invest in indexed securities whose value
is linked to currencies, interest rates, commodities, indices, or other
financial indicators. Most indexed securities are short to intermediate
term fixed-income securities whose values at maturity or interest rates
rise or fall according to the change in one or more specified underlying
instruments. Indexed securities may be positively or negatively indexed
(i.e., their value may increase or decrease if the underlying instrument
appreciates), and may have return characteristics similar to direct
investments in the underlying instrument or to one or more options on the
underlying instrument. Indexed securities may be more volatile than the
underlying instrument itself.
ILLIQUID INVESTMENTS. The fund may invest up to 10% of its assets in
illiquid investments. Under the supervision of the Board of Trustees, FMR
determines the liquidity of the fund's investments. The absence of a
trading market can make it difficult to ascertain a market value for
illiquid investments. Disposing of illiquid investments may involve
time-consuming negotiation and legal expenses, and it may be difficult or
impossible for the fund to sell them promptly at an acceptable price.
RESTRICTED SECURITIES. The fund may purchase securities which cannot be
sold to the public without registration under the Securities Act of 1933
(restricted securities). Unless registered for sale, these securities can
only be sold in privately negotiated transactions or pursuant to an
exemption from registration.
REPURCHASE AGREEMENTS AND SECURITIES LOANS. In a repurchase agreement, the
fund buys a security at one price and simultaneously agrees to sell it back
at a higher price. The fund may also make securities loans to
broker-dealers and institutional investors, including FBSI. In the event of
the bankruptcy of the other party to either a repurchase agreement or a
securities loan, the fund could experience delays in recovering its cash or
the securities it lent. To the extent that, in the meantime, the value of
securities purchased had decreased, or the value of the securities lent had
increased, the fund could experience a loss. In all cases, FMR must find
the creditworthiness of the other party to the transaction satisfactory.
INTERFUND BORROWING PROGRAM. The fund has received permission from the SEC
to lend money to and borrow money from other funds advised by FMR or its
affiliates. Interfund loans and borrowings normally will extend overnight,
but can have a maximum duration of seven days. The fund will lend through
the program only when the returns are higher than those available at the
same time from other short-term instruments (such as repurchase
agreements), and will borrow through the program only when the costs are
equal to or lower than the cost of bank loans. The fund will not lend more
than 5% of its assets to other funds, and will not borrow through the
program if, after doing so, total outstanding borrowings would exceed 15%
of total assets. Loans may be called on one day's notice, and the fund may
have to borrow from a bank at a higher interest rate if an interfund loan
is called or not renewed. Any delay in repayment to a lending fund could
result in a lost investment opportunity or additional borrowing costs.
NOTES
NOTES
NOTES
NOTES
NOTES
FIDELITY FIFTY
SUPPLEMENT TO THE STATEMENT OF ADDITIONAL INFORMATION
DATED AUGUST 31, 1993
The unaudited Financial Statements and Financial Highlights included in
the fund's Semi-Annual Report for the period September 17, 1993
(commencement of operations) to December 31, 1993 are incorporated herein
by reference.
MANAGEMENT CONTRACT. Effective November 1, 1993, FMR agreed to voluntarily
adopt the revised group fee rate schedule shown below for purposes of
calculating the group fee component of the management fee. The revised
schedule provides for lower management fees as total assets under
management increase, and it will be presented to shareholders for approval
at the next shareholder meeting.
GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES
Average Group Annualized Group Net Effective Annual Fee Rate
Assets Rate Assets
0 - $ 3 billion .520% $ 0.5 billion .5200%
3 - 6 .490 25 .4238
6 - 9 .460 50 .3823
9 - 12 .430 75 .3626
12 - 15 .400 100 .3512
15 - 18 .385 125 .3430
18 - 21 .370 150 .3371
21 - 24 .360 175 .3325
24 - 30 .350 200 .3284
30 - 36 .345 225 .3253
36 - 42 .340 250 .3223
42 - 48 .335 275 .3198
48 - 66 .325 300 .3175
66 - 84 .320 325 .3153
84 - 102 .315 350 .3133
102 - 138 .310
138 - 174 .305
174 - 228 .300
228 - 282 .295
282 - 336 .290
Over 336 .285
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION. The fund's sales charge
may be reduced to reflect sales charges previously paid, or that would have
been paid absent a reduction as noted in the prospectus, in connection with
investments in other Fidelity funds. This includes reductions for
investments in prototype or prototype-like retirement plans sponsored by
FMR or FMR Corp., which are listed beginning on page 12.
The following language replaces that found in item number (8) in the second
paragraph in the section entitled "Additional Purchase and Redemption
Information" beginning on page 12.
(8) if you are a current or former Trustee or officer of a Fidelity fund or
a current or retired officer, director, or regular employee of FMR
Corp. or its direct or indirect subsidiaries (a Fidelity Trustee or
employee), the spouse of a Fidelity Trustee or employee, a Fidelity Trustee
or employee acting as custodian for a minor child, or a person acting as
trustee of a trust for the sole benefit of the minor child of a Fidelity
Trustee or employee;
FIFB-94-2
(continued)
June 1 1994
The following language supplements that found in the second paragraph in
the section entitled "Additional Purchase and Redemption Information"
beginning on page 12.
The sales charge will not apply... (11) if you are a registered
investment adviser (RIA) purchasing for your discretionary accounts,
provided you execute a Fidelity RIA load waiver agreement which specifies
certain aggregate minimum and operating provisions. This waiver is
available only for shares purchased directly from Fidelity, without a
broker, unless purchased through a brokerage firm which is a correspondent
of National Financial Services Corporation (NFSC). The waiver is
unavailable, however, if the RIA is part of an organization principally
engaged in the brokerage business, unless the brokerage firm in the
organization is an NFSC corresponden t; (12) if you are a trust
institution or bank trust department purchasing for your non-discretionary,
non-retirement fiduciary accounts, provided you execute a Fidelity Trust
load waiver agreement which specifies certain aggregate minimum and
operating provisions. This waiver is available only for shares purchased
either directly from Fidelity or through a bank-affiliated broker, and is
unavailable if the trust department or institution is part of an
organization not principally engaged in banking or trust activities; or
(13) to shares purchased as part of a pension or profit-sharing plan as
defined in Section 401(a) of the Internal Revenue Code that maintains all
of its mutual fund assets in Fidelity mutual funds, provided the plan
executes a Fidelity non-prototype sales charge waiver request form
confirming its qualification.
FIDELITY FIFTY
CROSS REFERENCE SHEET
(continued)
FORM N-1A
ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION
<TABLE>
<CAPTION>
<S> <C>
10, 11.......................... Cover Page
12.................................. Description of Trust
..
13a - Investment Policies and Limitations
c............................
Portfolio Transactions
d..................................
14a - Trustees and Officers
c............................
15a, *
b..............................
Trustees and Officers
c..................................
16a FMR, Portfolio Transactions
i................................
Trustees and Officers
ii..............................
Management Contract
iii.............................
Management Contract
b.................................
c, Contracts with Companies Affiliated with FMR
d.............................
e - *
g...........................
Description of the Trust
h.................................
Contracts with Companies Affiliated with FMR
i.................................
17a - Portfolio Transactions
c............................
*
d,e..............................
18a................................ Description of the Fund
..
*
b.................................
19a................................ Additional Purchase and Redemption Information
..
Additional Purchase and Redemption Information;
b.................................. Valuation of Portfolio Securities
*
c..................................
20.................................. Distributions and Taxes
..
21a, Contracts with Companies Affiliated with FMR
b..............................
*
c.................................
22.................................. Performance
..
23.................................. Financial Statements
..
</TABLE>
* Not Applicable
FIDELITY FIFTY
A FUND OF FIDELITY HASTINGS STREET TRUST
STATEMENT OF ADDITIONAL INFORMATION
AUGUST 31, 1993
This Statement is not a prospectus but should be read in conjunction with
the fund's current Prospectus (dated August 31, 1993). Please retain this
document for future reference. To obtain an additional copy of the
Prospectus, please call Fidelity Distributors Corporation at
1-800-544-8888.
TABLE OF CONTENTS PAGE
Investment Policies and Limitations 2
Portfolio Transactions 9
Valuation of Portfolio Securities 10
Performance 11
Additional Purchase and Redemption Information 12
Distributions and Taxes 13
FMR 14
Trustees and Officers 14
Management Contract 16
Contracts With Companies Affiliated With FMR 18
Description of the Trust 18
INVESTMENT ADVISER
Fidelity Management & Research Company (FMR)
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (Far East) Inc. (FMR Far East)
Fidelity Management & Research (U.K.) Inc. (FMR U.K.)
DISTRIBUTOR
Fidelity Distributors Corporation (FDC)
TRANSFER AGENT
Fidelity Service Co. (FSC)
FIF-ptb-893
INVESTMENT POLICIES AND LIMITATIONS
The following policies and limitations supplement those set forth in the
Prospectus. Unless otherwise noted, whenever an investment policy or
limitation states a maximum percentage of the fund's assets that may be
invested in any security or other asset, or sets forth a policy regarding
quality standards, such standard or percentage limitation will be
determined immediately after and as a result of the fund's acquisition of
such security or other asset. Accordingly, any subsequent change in
values, net assets, or other circumstances will not be considered when
determining whether the investment complies with the fund's investment
policies and limitations.
The fund's fundamental investment policies and limitations cannot be
changed without approval by a "majority of the outstanding voting
securities" (as defined in the Investment Company Act of 1940) of the fund.
However, except for the fundamental investment limitations set forth below,
the investment policies and limitations described in this Statement of
Additional Information are not fundamental and may be changed without
shareholder approval. THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT
LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE FUND MAY NOT:
(1) issue senior securities, except as permitted under the Investment
Company Act of 1940;
(2) borrow money, except that the fund may borrow money for temporary or
emergency purposes (not for leveraging or investment) in an amount not
exceeding 33 1/3% of its total assets (including the amount borrowed) less
liabilities (other than borrowings). Any borrowings that come to exceed
this amount will be reduced within three days (not including Sundays and
holidays) to the extent necessary to comply with the 33 1/3% limitation;
(3) underwrite securities issued by others, except to the extent that the
fund may be considered an underwriter within the meaning of the Securities
Act of 1933 in the disposition of restricted securities;
(4) purchase the securities of any issuer (other than securities issued
or guaranteed by the U.S. government or any of its agencies or
instrumentalities) if, as a result, more than 25% of the fund's total
assets would be invested in the securities of companies whose principal
business activities are in the same industry;
(5) purchase or sell real estate unless acquired as a result of ownership
of securities or other instruments (but this shall not prevent the fund
from investing in securities or other instruments backed by real estate or
securities of companies engaged in the real estate business);
(6) purchase or sell physical commodities unless acquired as a result of
ownership of securities or other instruments (but this shall not prevent
the fund from purchasing or selling options and futures contracts or from
investing in securities or other instruments backed by physical
commodities); or
(7) lend any security or make any other loan if, as a result, more than
33 1/3% of its total assets would be lent to other parties, but this
limitation does not apply to purchases of debt securities or to repurchase
agreements.
THE FOLLOWING INVESTMENT LIMITATIONS ARE NOT FUNDAMENTAL AND MAY BE CHANGED
WITHOUT SHAREHOLDER APPROVAL.
(i) To meet federal tax requirements for qualification as a "regulated
investment company," the fund limits its investments so that at the close
of each quarter of its taxable year: (a) with regard to at least 50% of
total assets, no more than 5% of total assets are invested in the
securities of a single issuer, and (b) no more than 25% of total assets are
invested in the securities of a single issuer. Limitations (a) and (b) do
not apply to "government securities" as defined for federal tax purposes.
(ii) The fund does not currently intend to sell securities short, unless
it owns or has the right to obtain securities equivalent in kind and amount
to the securities sold short, and provided that transactions in futures
contracts and options are not deemed to constitute selling securities
short.
(iii) The fund does not currently intend to purchase securities on
margin, except that the fund may obtain such short-term credits as are
necessary for the clearance of transactions, and provided that margin
payments in connection with futures contracts and options on futures
contracts shall not constitute purchasing securities on margin.
(iv) The fund may borrow money only (a) from a bank or from a registered
investment company or portfolio for which FMR or an affiliate serves as
investment adviser or (b) by engaging in reverse repurchase agreements with
any party (reverse repurchase agreements are treated as borrowings for
purposes of fundamental investment limitation (2)). The fund will not
purchase any security while borrowings representing more than 5% of its
total assets are outstanding. The fund will not borrow from other funds
advised by FMR or its affiliates if total outstanding borrowings
immediately after such borrowing would exceed 15% of the fund's total
assets.
(v) The fund does not currently intend to purchase any security if, as a
result, more than 10% of its net assets would be invested in securities
that are deemed to be illiquid because they are subject to legal or
contractual restrictions on resale or because they cannot be sold or
disposed of in the ordinary course of business at approximately the prices
at which they are valued.
(vi) The fund does not currently intend to invest in securities of real
estate investment trusts that are not readily marketable, or to invest in
securities of real estate limited partnerships that are not listed on the
New York Stock Exchange or the American Stock Exchange or traded on the
NASDAQ National Market System.
(vii) The fund does not currently intend to lend assets other than
securities to other parties, except by (a) lending money (up to 5% of the
fund's net assets) to a registered investment company or portfolio for
which FMR or an affiliate serves as investment adviser or (b) acquiring
loans, loan participations, or other forms of direct debt instruments and,
in connection therewith, assuming any associated unfunded commitments of
the sellers. (This limitation does not apply to purchases of debt
securities or to repurchase agreements.)
(viii) The fund does not currently intend to (a) purchase securities of
other investment companies, except in the open market where no commission
except the ordinary broker's commission is paid, or (b) purchase or retain
securities issued by other open-end investment companies. Limitations (a)
and (b) do not apply to securities received as dividends, through offers of
exchange, or as a result of a reorganization, consolidation, or merger.
(ix) The fund does not currently intend to purchase the securities of any
issuer (other than securities issued or guaranteed by domestic or foreign
governments or political subdivisions thereof) if, as a result, more than
5% of its total assets would be invested in the securities of business
enterprises that, including predecessors, have a record of less than three
years of continuous operation.
(x) The fund does not currently intend to purchase warrants, valued at the
lower of cost or market, in excess of 5% of the fund's net assets.
Included in that amount, but not to exceed 2% of the fund's net assets, may
be warrants that are not listed on the New York Stock Exchange or the
American Stock Exchange. Warrants acquired by the fund in units or
attached to securities are not subject to these restrictions.
(xi) The fund does not currently intend to invest in oil, gas, or other
mineral exploration or development programs or leases.
(xii) The fund does not currently intend to purchase the securities of any
issuer if those officers and Trustees of the trust and those officers and
directors of FMR who individually own more than 1/2 of 1% of the securities
of such issuers together own more than 5% of such issuer's securities.
For the fund's limitations on futures and options transactions, see the
section entitled "Limitations on Futures and Options Transactions"
beginning on page 7.
AFFILIATED BANK TRANSACTIONS. Pursuant to exemptive orders issued by the
Securities and Exchange Commission (SEC), the fund may engage in
transactions with banks that are, or may be considered to be, "affiliated
persons" of the fund under the Investment Company Act of 1940. Such
transactions may be entered into only pursuant to procedures established
and periodically reviewed by the Board of Trustees. These transactions may
include repurchase agreements with custodian banks; purchases, as
principal, of short-term obligations of, and repurchase agreements with,
the 50 largest U.S. banks (measured by deposits); transactions in municipal
securities; and transactions in U.S. government securities with affiliated
banks that are primary dealers in these securities.
FUND'S RIGHTS AS A SHAREHOLDER. The fund does not intend to direct or
administer the day-to-day operations of any company. The fund, however,
may exercise its rights as a shareholder and may communicate its views on
important matters of policy to management, the Board of Directors, and
shareholders of a company when FMR determines that such matters could have
a significant effect on the value of the fund's investment in the company.
The activities that the fund may engage in, either individually or in
conjunction with others, may include, among others, supporting or opposing
proposed changes in a company's corporate structure or business activities;
seeking changes in a company's directors or management; seeking changes in
a company's direction or policies; seeking the sale or reorganization of
the company or a portion of its assets; or supporting or opposing third
party takeover efforts. This area of corporate activity is increasingly
prone to litigation and it is possible that the fund could be involved in
lawsuits related to such activities. FMR will monitor such activities with
a view to mitigating, to the extent possible, the risk of litigation
against the fund and the risk of actual liability if the fund is involved
in litigation. No guarantee can be made, however, that litigation against
the fund will not be undertaken or liabilities incurred.
REPURCHASE AGREEMENTS. In a repurchase agreement, the fund purchases a
security and simultaneously commits to resell that security to the seller
at an agreed-upon price on an agreed-upon date within a number of days from
the date of purchase. The resale price reflects the purchase price plus an
agreed-upon incremental amount which is unrelated to the coupon rate or
maturity of the purchased security. A repurchase agreement involves the
obligation of the seller to pay the agreed-upon price, which obligation is
in effect secured by the value (at least equal to the amount of the
agreed-upon resale price and marked to market daily) of the underlying
security. The fund may engage in a repurchase agreement with respect to
any security in which it is authorized to invest. While it does not
presently appear possible to eliminate all risks from these transactions
(particularly the possibility of a decline in the market value of the
underlying securities, as well as delays and costs to the fund in
connection with bankruptcy proceedings), it is the fund's current policy to
limit repurchase agreement transactions to those parties whose
creditworthiness has been reviewed and found satisfactory by FMR.
REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, the fund
sells a portfolio instrument to another party, such as a bank or
broker-dealer, in return for cash and agrees to repurchase the instrument
at a particular price and time. While a reverse repurchase agreement is
outstanding, the fund will maintain appropriate liquid assets in a
segregated custodial account to cover its obligation under the agreement.
The fund will enter into reverse repurchase agreements only with parties
whose creditworthiness has been found satisfactory by FMR. Such
transactions may increase fluctuations in the market value of the fund's
assets and may be viewed as a form of leverage.
SECURITIES LENDING. The fund may lend securities to parties such as
broker-dealers or institutional investors, including Fidelity Brokerage
Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange and
a subsidiary of FMR Corp.
Securities lending allows the fund to retain ownership of the securities
loaned and, at the same time, to earn additional income. Since there may
be delays in the recovery of loaned securities, or even a loss of rights in
collateral supplied should the borrower fail financially, loans will be
made only to parties deemed by FMR to be of good standing. Furthermore,
they will only be made if, in FMR's judgment, the consideration to be
earned from such loans would justify the risk.
FMR understands that it is the current view of the SEC Staff that the fund
may engage in loan transactions only under the following conditions: (1)
the fund must receive 100% collateral in the form of cash or cash
equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the
borrower must increase the collateral whenever the market value of the
securities loaned (determined on a daily basis) rises above the value of
the collateral; (3) after giving notice, the fund must be able to terminate
the loan at any time; (4) the fund must receive reasonable interest on the
loan or a flat fee from the borrower, as well as amounts equivalent to any
dividends, interest, or other distributions on the securities loaned and to
any increase in market value; (5) the fund may pay only reasonable
custodian fees in connection with the loan; and (6) the Board of Trustees
must be able to vote proxies on the securities loaned, either by
terminating the loan or by entering into an alternative arrangement with
the borrower.
Cash received through loan transactions may be invested in any security in
which the fund is authorized to invest. Investing this cash subjects that
investment, as well as the security loaned, to market forces (i.e., capital
appreciation or depreciation).
ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in
the ordinary course of business at approximately the prices at which they
are valued. Under the supervision of the Board of Trustees, FMR determines
the liquidity of the fund's investments and, through reports from FMR, the
Board monitors investments in illiquid instruments. In determining the
liquidity of the fund's investments, FMR may consider various factors,
including (1) the frequency of trades and quotations, (2) the number of
dealers and prospective purchasers in the marketplace, (3) dealer
undertakings to make a market, (4) the nature of the security (including
any demand or tender features), and (5) the nature of the marketplace for
trades (including the ability to assign or offset the fund's rights and
obligations relating to the investment). Investments currently considered
by the fund to be illiquid include repurchase agreements not entitling the
holder to payment of principal and interest within seven days, and
over-the-counter options. Also, FMR may determine some restricted
securities, loans and other direct debt instruments, and swap agreements to
be illiquid. However, with respect to over-the-counter options the fund
writes, all or a portion of the value of the underlying instrument may be
illiquid depending on the assets held to cover the option and the nature
and terms of any agreement the fund may have to close out the option before
expiration. In the absence of market quotations, illiquid investments are
priced at fair value as determined in good faith by a committee appointed
by the Board of Trustees. If through a change in values, net assets, or
other circumstances, the fund were in a position where more than 10% of its
net assets were invested in illiquid securities, it would seek to take
appropriate steps to protect liquidity.
RESTRICTED SECURITIES generally can be sold in privately negotiated
transactions, pursuant to an exemption from registration under the
Securities Act of 1933, or in a registered public offering. Where
registration is required, the fund may be obligated to pay all or part of
the registration expense and a considerable period may elapse between the
time it decides to seek registration and the time the fund may be permitted
to sell a security under an effective registration statement. If, during
such a period, adverse market conditions were to develop, the fund might
obtain a less favorable price than prevailed when it decided to seek
registration of the security.
LOANS AND OTHER DIRECT DEBT INSTRUMENTS are interests in amounts owed by a
corporate, governmental, or other borrower to another party. They may
represent amounts owed to lenders or lending syndicates (loans and loan
participations), to suppliers of goods or services (trade claims or other
receivables), or to other parties. Direct debt instruments involve a risk
of loss in case of default or insolvency of the borrower and may offer less
legal protection to the fund in the event of fraud or misrepresentation.
In addition, loan participations involve a risk of insolvency of the
lending bank or other financial intermediary. Direct debt instruments may
also include standby financing commitments that obligate the fund to supply
additional cash to the borrower on demand.
SWAP AGREEMENTS. Swap agreements can be individually negotiated and
structured to include exposure to a variety of different types of
investments or market factors. Depending on their structure, swap
agreements may increase or decrease the fund's exposure to long- or
short-term interest rates (in the U.S. or abroad), foreign currency values,
mortgage securities, corporate borrowing rates, or other factors such as
security prices or inflation rates. Swap agreements can take many
different forms and are known by a variety of names. The fund is not
limited to any particular form of swap agreement if FMR determines it is
consistent with the fund's investment objective and policies.
In a typical cap or floor agreement, one party agrees to make payments only
under specified circumstances, usually in return for payment of a fee by
the other party. For example, the buyer of an interest rate cap obtains
the right to receive payments to the extent that a specified interest rate
exceeds an agreed-upon level, while the seller of an interest rate floor is
obligated to make payments to the extent that a specified interest rate
falls below an agreed-upon level. An interest rate collar combines
elements of buying a cap and selling a floor.
Swap agreements will tend to shift the fund's investment exposure from one
type of investment to another. For example, if the fund agreed to exchange
payments in dollars for payments in foreign currency, the swap agreement
would tend to decrease the fund's exposure to U.S. interest rates and
increase its exposure to foreign currency and interest rates. Caps and
floors have an effect similar to buying or writing options. Depending on
how they are used, swap agreements may increase or decrease the overall
volatility of the fund's investments and its share price.
The most significant factor in the performance of swap agreements is the
change in the specific interest rate, currency, or other factors that
determine the amounts of payments due to and from the fund. If a swap
agreement calls for payments by the fund, the fund must be prepared to make
such payments when due. In addition, if the counterparty's
creditworthiness declined, the value of a swap agreement would be likely to
decline, potentially resulting in losses. The fund expects to be able to
eliminate its exposure under swap agreements either by assignment or other
disposition, or by entering into an offsetting swap agreement with the same
party or a similarly creditworthy party.
The fund will maintain appropriate liquid assets in a segregated custodial
account to cover its current obligations under swap agreements. If the
fund enters into a swap agreement on a net basis, it will segregate assets
with a daily value at least equal to the excess, if any, of the fund's
accrued obligations under the swap agreement over the accrued amount the
fund is entitled to receive under the agreement. If the fund enters into a
swap agreement on other than a net basis, it will segregate assets with a
value equal to the full amount of the fund's accrued obligations under the
agreement.
INDEXED SECURITIES. The fund may purchase securities whose prices are
indexed to the prices of other securities, securities indices, currencies,
precious metals or other commodities, or other financial indicators.
Indexed securities typically, but not always, are debt securities or
deposits whose value at maturity or coupon rate is determined by reference
to a specific instrument or statistic. Gold-indexed securities, for
example, typically provide for a maturity value that depends on the price
of gold, resulting in a security whose price tends to rise and fall
together with gold prices. Currency-indexed securities typically are
short-term to intermediate-term debt securities whose maturity values or
interest rates are determined by reference to the values of one or more
specified foreign currencies, and may offer higher yields than U.S.
dollar-denominated securities of equivalent issuers. Currency-indexed
securities may be positively or negatively indexed; that is, their maturity
value may increase when the specified currency value increases, resulting
in a security that performs similarly to a foreign-denominated instrument,
or their maturity value may decline when foreign currencies increase,
resulting in a security whose price characteristics are similar to a put on
the underlying currency. Currency-indexed securities may also have prices
that depend on the values of a number of different foreign currencies
relative to each other.
The performance of indexed securities depends to a great extent on the
performance of the security, currency, or other instrument to which they
are indexed, and may also be influenced by interest rate changes in the
U.S. and abroad. At the same time, indexed securities are subject to the
credit risks associated with the issuer of the security, and their values
may decline substantially if the issuer's creditworthiness deteriorates.
Recent issuers of indexed securities have included banks, corporations, and
certain U.S. government agencies. Indexed securities may be more volatile
than the underlying instruments.
FOREIGN INVESTMENTS. Foreign investments can involve significant risks in
addition to the risks inherent in U.S. investments. The value of
securities denominated in or indexed to foreign currencies, and of
dividends and interest from such securities, can change significantly when
foreign currencies strengthen or weaken relative to the U.S. dollar.
Foreign securities markets generally have less trading volume and less
liquidity than U.S. markets, and prices on some foreign markets can be
highly volatile. Many foreign countries lack uniform accounting and
disclosure standards comparable to those applicable to U.S. companies, and
it may be more difficult to obtain reliable information regarding an
issuer's financial condition and operations. In addition, the costs of
foreign investing, including withholding taxes, brokerage commissions, and
custodial costs, are generally higher than for U.S. investments.
Foreign markets may offer less protection to investors than U.S. markets.
Foreign issuers, brokers, and securities markets may be subject to less
government supervision. Foreign security trading practices, including
those involving the release of assets in advance of payment, may involve
increased risks in the event of a failed trade or the insolvency of a
broker-dealer, and may involve substantial delays. It may also be
difficult to enforce legal rights in foreign countries.
Investing abroad also involves different political and economic risks.
Foreign investments may be affected by actions of foreign governments
adverse to the interests of U.S. investors, including the possibility of
expropriation or nationalization of assets, confiscatory taxation,
restrictions on U.S. investment or on the ability to repatriate assets or
convert currency into U.S. dollars, or other government intervention.
There may be a greater possibility of default by foreign governments or
foreign government-sponsored enterprises. Investments in foreign countries
also involve a risk of local political, economic, or social instability,
military action or unrest, or adverse diplomatic developments. There is no
assurance that FMR will be able to anticipate these potential events or
counter their effects.
The considerations noted above generally are intensified for investments in
developing countries. Developing countries may have relatively unstable
governments, economies based on only a few industries, and securities
markets that trade a small number of securities.
The fund may invest in foreign securities that impose restrictions on
transfer within the U.S. or to U.S. persons. Although securities subject
to transfer restrictions may be marketable abroad, they may be less liquid
than foreign securities of the same class that are not subject to such
restrictions.
American Depositary Receipts and European Depositary Receipts (ADRs and
EDRs) are certificates evidencing ownership of shares of a foreign-based
issuer held in trust by a bank or similar financial institution. Designed
for use in U.S. and European securities markets, respectively, ADRs and
EDRs are alternatives to the purchase of the underlying securities in their
national markets and currencies.
FOREIGN CURRENCY TRANSACTIONS. The fund may hold foreign currency deposits
from time to time, and may convert dollars and foreign currencies in the
foreign exchange markets. Currency conversion involves dealer spreads and
other costs, although commissions usually are not charged. Currencies may
be exchanged on a spot (i.e., cash) basis, or by entering into forward
contracts to purchase or sell foreign currencies at a future date and
price. Forward contracts generally are traded in an inter bank market
conducted directly between currency traders (usually large commercial
banks) and their customers. The parties to a forward contract may agree to
offset or terminate the contract before its maturity, or may hold the
contract to maturity and complete the contemplated currency exchange.
The fund may use currency forward contracts to manage currency risks and to
facilitate transactions in foreign securities. The following discussion
summarizes the principal currency management strategies involving forward
contracts that could be used by the fund.
In connection with purchases and sales of securities denominated in foreign
currencies, the fund may enter into currency forward contracts to fix a
definite price for the purchase or sale in advance of the trade's
settlement date. This technique is sometimes referred to as a "settlement
hedge" or "transaction hedge." FMR expects to enter into settlement hedges
in the normal course of managing the fund's foreign investments. The fund
could also enter into forward contracts to purchase or sell a foreign
currency in anticipation of future purchases or sales of securities
denominated in foreign currency, even if the specific investments have not
yet been selected by FMR.
The fund may also use forward contracts to hedge against a decline in the
value of existing investments denominated in foreign currency. For
example, if the fund owned securities denominated in pounds sterling, it
could enter into a forward contract to sell pounds sterling in return for
U.S. dollars to hedge against possible declines in the pound's value. Such
a hedge, sometimes referred to as a "position hedge," would tend to offset
both positive and negative currency fluctuations, but would not offset
changes in security values caused by other factors. The fund could also
hedge the position by selling another currency expected to perform
similarly to the pound sterling - for example, by entering into a forward
contract to sell Deutschemarks or European Currency Units in return for
U.S. dollars. This type of hedge, sometimes referred to as a "proxy
hedge," could offer advantages in terms of cost, yield, or efficiency, but
generally would not hedge currency exposure as effectively as a simple
hedge into U.S. dollars. Proxy hedges may result in losses if the currency
used to hedge does not perform similarly to the currency in which the
hedged securities are denominated.
Under certain conditions, SEC guidelines require mutual funds to set aside
appropriate liquid assets in a segregated custodial account to cover
currency forward contracts. As required by SEC guidelines, the fund will
segregate assets to cover currency forward contracts, if any, whose purpose
is essentially speculative. The fund will not segregate assets to cover
forward contracts entered into for hedging purposes, including settlement
hedges, position hedges, and proxy hedges.
Successful use of forward currency contracts will depend on FMR's skill in
analyzing and predicting currency values. Forward contracts may
substantially change the fund's investment exposure to changes in currency
exchange rates, and could result in losses to the fund if currencies do not
perform as FMR anticipates. For example, if a currency's value rose at a
time when FMR had hedged the fund by selling that currency in exchange for
dollars, the fund would be unable to participate in the currency's
appreciation. If FMR hedges currency exposure through proxy hedges, the
fund could realize currency losses from the hedge and the security position
at the same time if the two currencies do not move in tandem. Similarly,
if FMR increases the fund's exposure to a foreign currency, and that
currency's value declines, the fund will realize a loss. There is no
assurance that FMR's use of forward currency contracts will be advantageous
to the fund or that it will hedge at an appropriate time.
SHORT SALES "AGAINST THE BOX". If the fund enters into a short sale
against the box, it will be required to set aside securities equivalent in
kind and amount to the securities sold short (or securities convertible or
exchangeable into such securities) and will be required to hold such
securities while the short sale is outstanding. The fund will incur
transaction costs, including interest expense, in connection with opening,
maintaining, and closing short sales against the box.
LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. The fund intends to file
a notice of eligibility for exclusion from the definition of the term
"commodity pool operator" with the Commodity Futures Trading Commission
(CFTC) and the National Futures Association, which regulate trading in the
futures markets, before engaging in any purchases or sales of futures
contracts or options on futures contracts. The fund intends to comply with
Section 4.5 of the regulations under the Commodity Exchange Act, which
limits the extent to which the fund can commit assets to initial margin
deposits and option premiums.
In addition, the fund will not: (a) sell futures contracts, purchase put
options, or write call options if, as a result, more than 25% of the fund's
total assets would be hedged with futures and options under normal
conditions; (b) purchase futures contracts or write put options if, as a
result, the fund's total obligations upon settlement or exercise of
purchased futures contracts and written put options would exceed 25% of its
total assets; or (c) purchase call options if, as a result, the current
value of option premiums for call options purchased by the fund would
exceed 5% of the fund's total assets. These limitations do not apply to
options attached to or acquired or traded together with their underlying
securities, and do not apply to securities that incorporate features
similar to options.
FUTURES CONTRACTS. When the fund purchases a futures contract, it agrees
to purchase a specified underlying instrument at a specified future date.
When the fund sells a futures contract, it agrees to sell the underlying
instrument at a specified future date. The price at which the purchase and
sale will take place is fixed when the fund enters into the contract. Some
currently available futures contracts are based on specific securities,
such as U.S. Treasury bonds or notes, and some are based on indices of
securities prices, such as the Standard & Poor's 500 Composite Stock
Price Index (S&P 500). Futures can be held until their delivery dates,
or can be closed out before then if a liquid secondary market is available.
The value of a futures contract tends to increase and decrease in tandem
with the value of its underlying instrument. Therefore, purchasing futures
contracts will tend to increase the fund's exposure to positive and
negative price fluctuations in the underlying instrument, much as if it had
purchased the underlying instrument directly. When the fund sells a
futures contract, by contrast, the value of its futures position will tend
to move in a direction contrary to the market. Selling futures contracts,
therefore, will tend to offset both positive and negative market price
changes, much as if the underlying instrument had been sold.
FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is
not required to deliver or pay for the underlying instrument unless the
contract is held until the delivery date. However, both the purchaser and
seller are required to deposit "initial margin" with a futures broker,
known as a futures commission merchant (FCM), when the contract is entered
into. Initial margin deposits are typically equal to a percentage of the
contract's value. If the value of either party's position declines, that
party will be required to make additional "variation margin" payments to
settle the change in value on a daily basis. The party that has a gain may
be entitled to receive all or a portion of this amount. Initial and
variation margin payments do not constitute purchasing securities on margin
for purposes of the fund's investment limitations. In the event of the
bankruptcy of an FCM that holds margin on behalf of the fund, the fund may
be entitled to return of margin owed to it only in proportion to the amount
received by the FCM's other customers, potentially resulting in losses to
the fund.
PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, the fund
obtains the right (but not the obligation) to sell the option's underlying
instrument at a fixed strike price. In return for this right, the fund
pays the current market price for the option (known as the option premium).
Options have various types of underlying instruments, including specific
securities, indices of securities prices, and futures contracts. The fund
may terminate its position in a put option it has purchased by allowing it
to expire or by exercising the option. If the option is allowed to expire,
the fund will lose the entire premium it paid. If the fund exercises the
option, it completes the sale of the underlying instrument at the strike
price. The fund may also terminate a put option position by closing it out
in the secondary market at its current price, if a liquid secondary market
exists.
The buyer of a typical put option can expect to realize a gain if security
prices fall substantially. However, if the underlying instrument's price
does not fall enough to offset the cost of purchasing the option, a put
buyer can expect to suffer a loss (limited to the amount of the premium
paid, plus related transaction costs).
The features of call options are essentially the same as those of put
options, except that the purchaser of a call option obtains the right to
purchase, rather than sell, the underlying instrument at the option's
strike price. A call buyer typically attempts to participate in potential
price increases of the underlying instrument with risk limited to the cost
of the option if security prices fall. At the same time, the buyer can
expect to suffer a loss if security prices do not rise sufficiently to
offset the cost of the option.
WRITING PUT AND CALL OPTIONS. When the fund writes a put option, it takes
the opposite side of the transaction from the option's purchaser. In
return for receipt of the premium, the fund assumes the obligation to pay
the strike price for the option's underlying instrument if the other party
to the option chooses to exercise it. When writing an option on a futures
contract the fund will be required to make margin payments to an FCM as
described above for futures contracts. The fund may seek to terminate its
position in a put option it writes before exercise by closing out the
option in the secondary market at its current price. If the secondary
market is not liquid for a put option the fund has written, however, the
fund must continue to be prepared to pay the strike price while the option
is outstanding, regardless of price changes, and must continue to set aside
assets to cover its position.
If security prices rise, a put writer would generally expect to profit,
although its gain would be limited to the amount of the premium it
received. If security prices remain the same over time, it is likely that
the writer will also profit, because it should be able to close out the
option at a lower price. If security prices fall, the put writer would
expect to suffer a loss. This loss should be less than the loss from
purchasing the underlying instrument directly, however, because the premium
received for writing the option should mitigate the effects of the decline.
Writing a call option obligates the fund to sell or deliver the option's
underlying instrument, in return for the strike price, upon exercise of the
option. The characteristics of writing call options are similar to those
of writing put options, except that writing calls generally is a profitable
strategy if prices remain the same or fall. Through receipt of the option
premium, a call writer mitigates the effects of a price decline. At the
same time, because a call writer must be prepared to deliver the underlying
instrument in return for the strike price, even if its current value is
greater, a call writer gives up some ability to participate in security
price increases.
COMBINED POSITIONS. The fund may purchase and write options in
combination with each other, or in combination with futures or forward
contracts, to adjust the risk and return characteristics of the overall
position. For example, the fund may purchase a put option and write a call
option on the same underlying instrument, in order to construct a combined
position whose risk and return characteristics are similar to selling a
futures contract. Another possible combined position would involve writing
a call option at one strike price and buying a call option at a lower
price, in order to reduce the risk of the written call option in the event
of a substantial price increase. Because combined options positions
involve multiple trades, they result in higher transaction costs and may be
more difficult to open and close out.
CORRELATION OF PRICE CHANGES. Because there are a limited number of types
of exchange-traded options and futures contracts, it is likely that the
standardized contracts available will not match the fund's current or
anticipated investments exactly. The fund may invest in options and
futures contracts based on securities with different issuers, maturities,
or other characteristics from the securities in which it typically invests
which involves a risk that the options or futures position will not track
the performance of the fund's other investments.
Options and futures prices can also diverge from the prices of their
underlying instruments, even if the underlying instruments match the fund's
investments well. Options and futures prices are affected by such factors
as current and anticipated short-term interest rates, changes in volatility
of the underlying instrument, and the time remaining until expiration of
the contract, which may not affect security prices the same way. Imperfect
correlation may also result from differing levels of demand in the options
and futures markets and the securities markets, from structural differences
in how options and futures and securities are traded, or from imposition of
daily price fluctuation limits or trading halts. The fund may purchase or
sell options and futures contracts with a greater or lesser value than the
securities it wishes to hedge or intends to purchase in order to attempt to
compensate for differences in volatility between the contract and the
securities, although this may not be successful in all cases. If price
changes in the fund's options or futures positions are poorly correlated
with its other investments, the positions may fail to produce anticipated
gains or result in losses that are not offset by gains in other
investments.
LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a
liquid secondary market will exist for any particular options or futures
contract at any particular time. Options may have relatively low trading
volume and liquidity if their strike prices are not close to the underlying
instrument's current price. In addition, exchanges may establish daily
price fluctuation limits for options and futures contracts, and may halt
trading if a contract's price moves upward or downward more than the limit
in a given day. On volatile trading days when the price fluctuation limit
is reached or a trading halt is imposed, it may be impossible for the fund
to enter into new positions or close out existing positions. If the
secondary market for a contract is not liquid because of price fluctuation
limits or otherwise, it could prevent prompt liquidation of unfavorable
positions, and potentially could require the fund to continue to hold a
position until delivery or expiration regardless of changes in its value.
As a result, the fund's access to other assets held to cover its options or
futures positions could also be impaired.
OTC OPTIONS. Unlike exchange-traded options, which are standardized with
respect to the underlying instrument, expiration date, contract size, and
strike price, the terms of over-the-counter options (options not traded on
exchanges) generally are established through negotiation with the other
party to the option contract. While this type of arrangement allows the
fund greater flexibility to tailor an option to its needs, OTC options
generally involve greater credit risk than exchange-traded options, which
are guaranteed by the clearing organization of the exchanges where they are
traded.
OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures
contracts are similar to forward currency exchange contracts, except that
they are traded on exchanges (and have margin requirements) and are
standardized as to contract size and delivery date. Most currency futures
contracts call for payment or delivery in U.S. dollars. The underlying
instrument of a currency option may be a foreign currency, which generally
is purchased or delivered in exchange for U.S. dollars, or may be a futures
contract. The purchaser of a currency call obtains the right to purchase
the underlying currency, and the purchaser of a currency put obtains the
right to sell the underlying currency.
The uses and risks of currency options and futures are similar to options
and futures relating to securities or indices, as discussed above. The
fund may purchase and sell currency futures and may purchase and write
currency options to increase or decrease its exposure to different foreign
currencies. The fund may also purchase and write currency options in
conjunction with each other or with currency futures or forward contracts.
Currency futures and options values can be expected to correlate with
exchange rates, but may not reflect other factors that affect the value of
the fund's investments. A currency hedge, for example, should protect a
Yen-denominated security from a decline in the Yen, but will not protect
the fund against a price decline resulting from deterioration in the
issuer's creditworthiness. Because the value of the fund's
foreign-denominated investments changes in response to many factors other
than exchange rates, it may not be possible to match the amount of currency
options and futures to the value of the fund's investments exactly over
time.
ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The fund will comply
with guidelines established by the SEC with respect to coverage of options
and futures strategies by mutual funds, and if the guidelines so require
will set aside appropriate liquid assets in a segregated custodial account
in the amount prescribed. Securities held in a segregated account cannot
be sold while the futures or option strategy is outstanding, unless they
are replaced with other suitable assets. As a result, there is a
possibility that segregation of a large percentage of the fund's assets
could impede portfolio management or the fund's ability to meet redemption
requests or other current obligations.
PORTFOLIO TRANSACTIONS
All orders for the purchase or sale of portfolio securities are placed on
behalf of the fund by FMR pursuant to authority contained in the management
contract. FMR is also responsible for the placement of transaction orders
for other investment companies and accounts for which it or its affiliates
act as investment adviser. In selecting broker-dealers, subject to
applicable limitations of the federal securities laws, FMR will consider
various relevant factors, including, but not limited to, the size and type
of the transaction; the nature and character of the markets for the
security to be purchased or sold; the execution efficiency, settlement
capability, and financial condition of the broker-dealer firm; the
broker-dealer's execution services rendered on a continuing basis; and the
reasonableness of any commissions. Commissions for foreign investments
traded on foreign exchanges generally will be higher than for U.S.
investments and may not be subject to negotiation.
The fund may execute portfolio transactions with broker-dealers who provide
research and execution services to the fund or other accounts over which
FMR or its affiliates exercise investment discretion. Such services may
include advice concerning the value of securities; the advisability of
investing in, purchasing, or selling securities; the availability of
securities or the purchasers or sellers of securities; furnishing analyses
and reports concerning issuers, industries, securities, economic factors
and trends, portfolio strategy, and performance of accounts; and effecting
securities transactions and performing functions incidental thereto (such
as clearance and settlement). The selection of such broker-dealers is
generally made by FMR (to the extent possible consistent with execution
considerations) in accordance with a ranking of broker-dealers determined
periodically by FMR's investment staff based upon the quality of such
research and execution services provided.
The receipt of research from broker-dealers that execute transactions on
behalf of the fund may be useful to FMR in rendering investment management
services to the fund or its other clients, and conversely, such research
provided by broker-dealers who have executed transaction orders on behalf
of other FMR clients may be useful to FMR in carrying out its obligations
to the fund. The receipt of such research has not reduced FMR's normal
independent research activities; however, it enables FMR to avoid
additional expenses that could be incurred if FMR tried to develop
comparable information through its own efforts.
Subject to applicable limitations of the federal securities laws,
broker-dealers may receive commissions for agency transactions that are in
excess of the amount of commissions charged by other broker-dealers in
recognition of their research and execution services. In order to cause
the fund to pay such higher commissions, FMR must determine in good faith
that such commissions are reasonable in relation to the value of the
brokerage and research services provided by such executing broker-dealers,
viewed in terms of a particular transaction or FMR's overall
responsibilities to the fund and its other clients. In reaching this
determination, FMR will not attempt to place a specific dollar value on the
brokerage and research services provided, or to determine what portion of
the compensation should be related to those services.
FMR is authorized to use research services provided by and to place
portfolio transactions with brokerage firms that have provided assistance
in the distribution of shares of the fund or shares of other Fidelity funds
to the extent permitted by law. FMR may use research services provided by
and place agency transactions with Fidelity Brokerage Services, Inc. (FBSI)
and Fidelity Brokerage Services, Ltd. (FBSL), subsidiaries of FMR Corp., if
the commissions are fair, reasonable, and comparable to commissions charged
by non-affiliated, qualified brokerage firms for similar services.
Section 11(a) of the Securities Exchange Act of 1934 prohibits members of
national securities exchanges from executing exchange transactions for
accounts which they or their affiliates manage, except in accordance with
regulations of the Securities and Exchange Commission. Pursuant to such
regulations, the Board of Trustees has approved a written agreement that
permits FBSI to effect portfolio transactions on national securities
exchanges and to retain compensation in connection with such transactions.
The Trustees periodically review FMR's performance of its responsibilities
in connection with the placement of portfolio transactions on behalf of the
fund and review the commissions paid by the fund over representative
periods of time to determine if they are reasonable in relation to the
benefits to the fund.
The fund's annualized turnover rate in its first fiscal period is not
expected to exceed 300%. Because a high turnover rate increases
transaction costs and may increase taxable captial gains, FMR carefully
weighs the anicipated beneifts of short-term investing against these
consequences.
From time to time the Trustees will review whether the recapture for the
benefit of the fund of some portion of the brokerage commissions or similar
fees paid by the fund on portfolio transactions is legally permissible and
advisable. The fund seeks to recapture soliciting broker-dealer fees on the
tender of portfolio securities, but at present no other recapture
arrangements are in effect. The Trustees intend to continue to review
whether recapture opportunities are available and are legally permissible
and, if so, to determine, in the exercise of their business judgment,
whether it would be advisable for the fund to seek such recapture.
Although the Trustees and officers of the fund are substantially the same
as those of other funds managed by FMR, investment decisions for the fund
are made independently from those of other funds managed by FMR or accounts
managed by FMR affiliates. It sometimes happens that the same security is
held in the portfolio of more than one of these funds or accounts.
Simultaneous transactions are inevitable when several funds are managed by
the same investment adviser, particularly when the same security is
suitable for the investment objective of more than one fund.
When two or more funds are simultaneously engaged in the purchase or sale
of the same security, the prices and amounts are allocated in accordance
with a formula considered by the officers of the funds involved to be
equitable to each fund. In some cases this system could have a detrimental
effect on the price or value of a security as far as the fund is concerned.
In other cases, however, the ability of the fund to participate in volume
transactions will produce better executions and prices for the fund. It is
the current opinion of the Trustees that the desirability of retaining FMR
as investment adviser to the fund outweighs any disadvantages that may be
said to exist from exposure to simultaneous transactions.
VALUATION OF PORTFOLIO SECURITIES
Portfolio securities are valued by various methods depending on the
primary market or exchange on which they trade. Equity securities for
which the primary market is the U.S. are valued at last sale price or, if
no sale has occurred, at the closing bid price. Equity securities for
which the primary market is outside the U.S. are valued using the official
closing price or the last sale price in the principal market where they are
traded. If the last sale price (on the local exchange) is unavailable, the
last evaluated quote or last bid price is normally used. Short-term
securities are valued either at amortized cost or at original cost plus
accrued interest, both of which approximate current value. Fixed-income
securities are valued primarily by a pricing service that uses a vendor
security valuation matrix which incorporates both dealer-supplied
valuations and electronic data processing techniques. This twofold
approach is believed to more accurately reflect fair value because it takes
into account appropriate factors such as institutional trading in similar
groups of securities, yield, quality, coupon rate, maturity, type of issue,
trading characteristics, and other market data, without exclusive reliance
upon quoted, exchange, or over-the counter prices. Use of pricing services
has been approved by the Board of Trustees.
Securities and other assets for which there is no readily available market
are valued in good faith by a committee appointed by the Board of Trustees.
The procedures set forth above need not be used to determine the value of
the securities owned by the fund if, in the opinion of a committee
appointed by the Board of Trustees, some other method (e.g., closing
over-the-counter bid prices in the case of debt instruments traded on an
exchange) would more accurately reflect the fair market value of such
securities.
Generally, the valuation of foreign and domestic equity securities, as
well as corporate bonds, U.S. government securities, money market
instruments, and repurchase agreements, is substantially completed each day
at the close of the NYSE. The values of any such securities held by the
fund are determined as of such time for the purpose of computing the fund's
net asset value. Foreign security prices are furnished by independent
brokers or quotation services which express the value of securities in
their local currency. FSC gathers all exchange rates daily at the close of
the NYSE using the last quoted price on the local currency and then
translates the value of foreign securities from their local currency into
U.S. dollars. Any changes in the value of forward contracts due to
exchange rate fluctuations and days to maturity are included in the
calculation of net asset value. If an extraordinary event that is expected
to materially affect the value of a portfolio security occurs after the
close of an exchange on which that security is traded, then the security
will be valued as determined in good faith by a committee appointed by the
Board of Trustees.
PERFORMANCE
The fund may quote its performance in various ways. All performance
information supplied by the fund in advertising is historical and is not
intended to indicate future returns. The fund's share price and total
returns fluctuate in response to market conditions and other factors, and
the value of fund shares when redeemed may be more or less than their
original cost.
TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all
aspects of the fund's returns, including the effect of reinvesting
dividends and capital gain distributions, and any change in the fund's net
asset value per share (NAV) over the period. Average annual returns are
calculated by determining the growth or decline in value of a hypothetical
historical investment in the fund over a stated period, and then
calculating the annually compounded percentage rate that would have
produced the same result if the rate of growth or decline in value had been
constant over the period. For example, a cumulative return of 100% over
ten years would produce an average annual return of 7.18%, which is the
steady annual rate of return that would equal 100% growth on a compounded
basis in ten years. Average annual returns covering periods of less than
one year are calculated by determining the fund's total return for the
period, extending that return for a full year (assuming that performance
remains constant over the year), and quoting the result as an annual
return. While average annual returns are a convenient means of comparing
investment alternatives, investors should realize that the fund's
performance is not constant over time, but changes from year to year, and
that average annual returns represent averaged figures as opposed to the
actual year-to-year performance of the fund.
In addition to average annual returns, the fund may quote unaveraged or
cumulative total returns reflecting the simple change in value of an
investment over a stated period. Average annual and cumulative total
returns may be quoted as a percentage or as a dollar amount, and may be
calculated for a single investment, a series of investments, or a series of
redemptions, over any time period. Total returns may be broken down into
their components of income and capital (including capital gains and changes
in share price) in order to illustrate the relationship of these factors
and their contributions to total return. An example of this type of
illustration is given below. Total returns may be quoted on a before-tax
or after-tax basis, and may or may not take the fund's 3% sales charge into
account. Excluding the fund's sales charge from a total return calculation
produces a higher total return figure. Total returns and other performance
information may be quoted numerically or in a table, graph, or similar
illustration.
NET ASSET VALUE. Charts and graphs using the fund's net asset values,
adjusted net asset values, and benchmark indices may be used to exhibit
performance. An adjusted NAV includes any distributions paid by the fund
and reflects all elements of its return. Unless otherwise indicated, the
fund's adjusted NAVs are not adjusted for sales charges, if any.
MOVING AVERAGES. The fund may illustrate performance using moving
averages. A long-term moving average is the average of each week's
adjusted closing NAV for a specified period. A short-term moving average
is the average of each day's adjusted closing NAV for a specified period.
Moving Average Activity Indicators combine adjusted closing NAVs from the
last business day of each week with moving averages for a specified period
to produce indicators showing when an NAV has crossed, stayed above, or
stayed below its moving average.
The fund may compare its performance to the record of the Standard &
Poor's 500 Composite Stock Price Index (S&P 500), the Dow Jones
Industrial Average (DJIA), and the cost of living (measured by the Consumer
Price Index, or CPI) over the same period. The S&P 500 and DJIA
comparisons would show how the fund's total return compared to the record
of two broad averages of common stock prices and a narrower set of stocks
of major industrial companies, respectively. The fund has the ability to
invest in securities not included in any index, and its investment
portfolio may or may not be similar in composition to the indices. Figures
for the S&P 500 and DJIA are based on the prices of unmanaged groups of
stocks and, unlike the fund's returns, their returns do not include the
effect of paying brokerage commissions and other costs of investing.
The fund's performance may be compared to the performance of other mutual
funds in general, or to the performance of particular types of mutual
funds. These comparisons may be expressed as mutual fund rankings
prepared by Lipper Analytical Services, Inc. (Lipper), an independent
service located in Summit, New Jersey that monitors the performance of
mutual funds. Lipper generally ranks funds on the basis of total return,
assuming reinvestment of distributions, but does not take sales charges or
redemption fees into consideration, and is prepared without regard to tax
consequences. In addition to the mutual fund rankings, the fund's
performance may be compared to mutual fund performance indices prepared by
Lipper.
From time to time, the fund's performance also may be compared to other
mutual funds tracked by financial or business publications and periodicals.
For example, the fund may quote Morningstar, Inc. in its advertising
materials. Morningstar, Inc. is a mutual fund rating service that rates
mutual funds on the basis of risk-adjusted performance. Rankings that
compare the performance of Fidelity funds to one another in appropriate
categories over specific periods of time may also be quoted in advertising.
Fidelity may provide information designed to help individuals understand
their investment goals and explore various financial strategies. For
example, Fidelity's FundMatchSM Program includes a workbook describing
general principles of investing, such as asset allocation, diversification,
risk tolerance, and goal setting; a questionnaire designed to help create a
personal financial profile; and an action plan offering investment
alternatives. Materials may also include discussions of Fidelity's three
asset allocation funds and Portfolio Advisory Services.
Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical
returns of the capital markets in the United States, including common
stocks, small capitalization stocks, long-term corporate bonds,
intermediate-term government bonds, long-term government bonds, Treasury
bills, the U.S. rate of inflation (based on the CPI), and combinations of
various capital markets. The performance of these capital markets is based
on the returns of different indices.
Fidelity funds may use the performance of these capital markets in order to
demonstrate general risk-versus-reward investment scenarios. Performance
comparisons may also include the value of a hypothetical investment in any
of these capital markets. The risks associated with the security types in
any capital market may or may not correspond directly to those of the
funds. Ibbotson calculates total returns in the same method as the funds.
The funds may also compare performance to that of other compilations or
indices that may be developed and made available in the future.
In advertising materials, Fidelity may reference or discuss its products
and services, which may include: other Fidelity funds; retirement
investing; brokerage products and services; the effects of periodic
investment plans and dollar cost averaging; saving for college; charitable
giving; and the Fidelity credit card. In addition, Fidelity may quote
financial or business publications and periodicals, including model
portfolios or allocations, as they relate to fund management, investment
philosophy, and investment techniques. Fidelity may also reprint and use
as advertising and sales literature, articles from Fidelity Focus, a
quarterly magazine provided free of charge to Fidelity fund shareholders.
The fund may present its fund number, Quotron number, CUSIP number, and
discuss or quote its current portfolio manager.
VOLATILITY. The fund may quote various measures of volatility and
benchmark correlation in advertising. In addition, the fund may compare
these measures to those of other funds. Measures of volatility seek to
compare the fund's historical share price fluctuations or total returns to
those of a benchmark. Measures of benchmark correlation indicate how valid
a comparative benchmark may be. All measures of volatility and correlation
are calculated using averages of historical data.
MOMENTUM INDICATORS indicate the fund's price movements over specific
periods of time. Each point on the momentum indicator represents the
fund's percentage change in price movements over that period.
The fund may advertise examples of the effects of periodic investment
plans, including the principle of dollar cost averaging. In such a
program, an investor invests a fixed dollar amount in a fund at periodic
intervals, thereby purchasing fewer shares when prices are high and more
shares when prices are low. While such a strategy does not assure a profit
or guard against a loss in a declining market, the investor's average cost
per share can be lower than if fixed numbers of shares are purchased at the
same intervals. In evaluating such a plan, investors should consider their
ability to continue purchasing shares during periods of low price levels.
The fund may be available for purchase through retirement plans or other
programs offering deferral of, or exemption from, income taxes, which may
produce superior after-tax returns over time. For example, a $1,000
investment earning a taxable return of 10% annually would have an after-tax
value of $1,949 after ten years, assuming tax was deducted from the return
each year at a 31% rate. An equivalent tax-deferred investment would have
an after-tax value of $2,100 after ten years, assuming tax was deducted at
a 31% rate from the tax-deferred earnings at the end of the ten-year
period.
As of June 30, 1993, FMR managed approximately $101 billion in equity fund
assets as defined and tracked by Lipper. This figure represents the
largest amount of equity fund assets under management by a mutual fund
investment adviser in the United States, making FMR America's leading
equity (stock) fund manager. From time to time, the fund may use any of
the above information in its advertising and sales literature.
ADDITIONAL PURCHASE AND REDEMPTION INFORMATION
As provided for in Rule 22d-1 under the Investment Company Act of 1940 (the
1940 Act), FDC exercises its right to waive the fund's 3% sales charge on
shares acquired through reinvestment of dividends and capital gain
distributions or in connection with a fund's merger with or acquisition of
any investment company or trust.
In addition, the fund's sales charges will not apply (1) if you buy shares
as part of an employee benefit plan (including the Fidelity-sponsored
403(b) and corporate IRA programs but otherwise as defined in the Employee
Retirement Income Security Act) maintained by a U.S. employer and having
more than 200 eligible employees, or a minimum of $3,000,000 in plan assets
invested in Fidelity mutual funds, or as part of an employee benefit plan
maintained by a U.S. employer that is a member of a parent-subsidiary group
of corporations (within the meaning of Section 1563(a)(1) of the Internal
Revenue Code, with "50%" substituted for "80%") any member of which
maintains an employee benefit plan having more than 200 eligible employees,
or a minimum of $3,000,000 in plan assets invested in Fidelity mutual
funds, or as part of an employee benefit plan maintained by a non-U.S.
employer having 200 or more eligible employees, or a minimum of $3,000,000
in plan assets invested in Fidelity mutual funds, the assets of which are
held in a bona fide trust for the exclusive benefit of employees
participating therein; (2) to shares purchased by an insurance company
separate account used to fund annuity contracts purchased by employee
benefit plans (including 403(b) programs, but otherwise as defined in the
Employee Retirement Income Security Act), which, in the aggregate, have
either more than 200 eligible employees or a minimum of $3,000,000 in
assets invested in Fidelity funds; (3) to shares in a Fidelity IRA account
purchased (including purchases by exchange) with the proceeds of a
distribution from an employee benefit plan provided that: (i) at the time
of distribution, the employer, or an affiliate (as described in exemption
(1) above) of such employer, maintained at least one employee benefit plan
that qualified for exemption (1) and that had at least some portion of its
assets invested in one or more mutual funds advised by FMR, or in one or
more accounts or pools advised by Fidelity Management Trust Company; and
(ii) the distribution is transferred from the plan to a Fidelity Rollover
IRA account within 60 days from the date of the distribution; (4) if you
are a charitable organization (as defined in Section 501(c)(3) of the
Internal Revenue Code) investing $100,000 or more; (5) if you purchase
shares for a charitable remainder trust or life income pool established for
the benefit of a charitable organization (as defined by Section 501(c)(3)
of the Internal Revenue Code); (6) if you are an investor participating in
the Fidelity Trust Portfolios program (these investors must make initial
investments of $100,000 or more in Trust Portfolios funds and must, during
the initial six month period, reach and maintain an aggregate balance of at
least $500,000 in all accounts and subaccounts purchased through the Trust
Portfolios program); (7) to shares purchased through Portfolio Advisory
Services; (8) if you are a current or former Trustee or officer of a
Fidelity fund or a current or retired officer, director, or full-time
employee of FMR Corp. or its direct or indirect subsidiaries (a Fidelity
Trustee or employee), the spouse of a Fidelity Trustee or employee, a
Fidelity Trustee or employee acting as custodian for a minor child, or a
person acting as trustee of a trust for the sole benefit of the minor child
of a Fidelity Trustee or employee; (9) if you are a bank trust officer,
registered representative, or other employee of a Qualified Recipient.
Qualified Recipients are securities dealers or other entities, including
banks and other financial institutions, who have sold the fund's shares
under special arrangements in connection with FDC's sales activities; or
(10) to shares purchased by contributions and exchanges to the following
prototype or prototype-like retirement plans sponsored by FMR Corp. or FMR
and that are marketed and distributed directly to plan sponsors or
participants, without any intervention or assistance from any intermediary
distribution channel: The Fidelity IRA, The Fidelity Rollover IRA, The
Fidelity SEP-IRA and SARSEP, The Fidelity Retirement Plan, Fidelity Defined
Benefit Plan, The Fidelity Group IRA, The Fidelity 403(b) Program, The
Fidelity Investments 401(a) Prototype Plan for Tax-Exempt Employers, and
The CORPORATEplan for Retirement (Profit Sharing and Money Purchase Plan).
FDC has chosen to waive the funds' sales charges in these instances because
of efficiencies involved in sales of shares to these investors.
The fund's sales charge may be reduced to reflect sales charges previously
paid in connection with investments in other Fidelity funds. (See the
fund's Prospectus for further information.)
The fund is open for business and its net asset value per share (NAV) is
calculated each day the New York Stock Exchange (NYSE) is open for trading.
The NYSE has designated the following holiday closings for 1993: New
Year's Day, Washington's Birthday (observed), Good Friday, Memorial Day
(observed), Independence Day (observed), Labor Day, Thanksgiving Day, and
Christmas Day (observed). Although FMR expects the same holiday schedule
to be observed in the future, the NYSE may modify its holiday schedule at
any time.
FSC normally determines the fund's NAV as of the close of the NYSE
(normally 4:00 p.m. Eastern time). However, NAV may be calculated earlier
if trading on the NYSE is restricted or as permitted by the SEC. To the
extent that portfolio securities are traded in other markets on days when
the NYSE is closed, the fund's NAV may be affected on days when investors
do not have access to the fund to purchase or redeem shares.
If the Trustees determine that existing conditions make cash payments
undesirable, redemption payments may be made in whole or in part in
securities or other property, valued for this purpose as they are valued in
computing a fund's NAV. Shareholders receiving securities or other
property on redemption may realize a gain or loss for tax purposes, and
will incur any costs of sale, as well as the associated inconveniences.
Pursuant to Rule 11a-3 under the 1940 Act, the fund is required to give
shareholders at least 60 days' notice prior to terminating or modifying its
exchange privilege. Under the Rule, the 60-day notification requirement
may be waived if (i) the only effect of a modification would be to reduce
or eliminate an administrative fee, redemption fee, or deferred sales
charge ordinarily payable at the time of an exchange, or (ii) the fund
suspends the redemption of the shares to be exchanged as permitted under
the 1940 Act or the rules and regulations thereunder, or the fund to be
acquired suspends the sale of its shares because it is unable to invest
amounts effectively in accordance with its investment objective and
policies.
In the Prospectus, the fund has notified shareholders that it reserves the
right at any time, without prior notice, to refuse exchange purchases by
any person or group if, in FMR's judgment, the fund would be unable to
invest effectively in accordance with its investment objective and
policies, or would otherwise potentially be adversely affected.
DISTRIBUTIONS AND TAXES
DISTRIBUTIONS. If you request to have distributions mailed to you and the
U.S. Postal Service cannot deliver your checks, or if your checks remain
uncashed for six months, Fidelity may reinvest your distributions at the
then-current NAV. All subsequent distributions will then be reinvested
until you provide Fidelity with alternate instructions.
DIVIDENDS. A portion of the fund's income may qualify for the
dividends-received deduction available to corporate shareholders to the
extent that the fund's income is derived from qualifying dividends.
Because the fund may earn other types of income, such as interest, income
from securities loans, non-qualifying dividends, and short-term capital
gains, the percentage of dividends from the fund that qualifies for the
deduction generally will be less than 100%. The fund will notify corporate
shareholders annually of the percentage of fund dividends that qualifies
for the dividends-received deduction. A portion of the fund's dividends
derived from certain U.S. government obligations may be exempt from state
and local taxation. Gains (losses) attributable to foreign currency
fluctuations are generally taxable as ordinary income, and therefore will
increase (decrease) dividend distributions. The fund will send each
shareholder a notice in January describing the tax status of dividends and
capital gain distributions for the prior year.
CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by the fund on
the sale of securities and distributed to shareholders are federally
taxable as long-term capital gains regardless of the length of time
shareholders have held their shares. If a shareholder receives a long-term
capital gain distribution on shares of the fund and such shares are held
six months or less and are sold at a loss, the portion of the loss equal to
the amount of the long-term capital gain distribution will be considered a
long-term loss for tax purposes.
Short-term capital gains distributed by the fund are taxable to
shareholders as dividends, not as capital gains. Distributions from
short-term capital gains do not qualify for the dividends-received
deduction.
FOREIGN TAXES. Foreign governments may withhold taxes on dividends and
interest paid with respect to foreign securities. Because the fund does
not currently anticipate that securities of foreign issuers will constitute
more than 50% of its total assets at the end of its fiscal year,
shareholders should not expect to claim a foreign tax credit or deduction
on their federal income tax returns with respect to foreign taxes withheld.
TAX STATUS OF THE FUND. The fund intends to qualify each year as a
"regulated investment company" for tax purposes so that it will not be
liable for federal tax on income and capital gains distributed to
shareholders. In order to qualify as a regulated investment company and
avoid being subject to federal income or excise taxes at the fund level,
the fund intends to distribute substantially all of its net investment
income and net realized capital gains within each calendar year as well as
on a fiscal year basis. The fund intends to comply with other tax rules
applicable to regulated investment companies, including a requirement that
capital gains from the sale of securities held less than three months
constitute less than 30% of the fund's gross income for each fiscal year.
Gains from some forward currency contracts, futures contracts, and options
are included in this 30% calculation, which may limit the fund's
investments in such instruments.
If the fund purchases shares in certain foreign investment entities,
defined as passive foreign investment companies (PFICs) in the Internal
Revenue Code, it may be subject to U.S. federal income tax on a portion of
any excess distribution or gain from the disposition of such shares.
Interest charges may also be imposed on the fund with respect to deferred
taxes arising from such distributions or gains.
The fund is treated as a separate entity from the other funds of Fidelity
Hastings Street Trust for tax purposes.
OTHER TAX INFORMATION. The information above is only a summary of some of
the tax consequences generally affecting the fund and its shareholders, and
no attempt has been made to discuss individual tax consequences. In
addition to federal income taxes, shareholders may be subject to state and
local taxes on distributions received from the fund. Investors should
consult their tax advisers to determine whether the fund is suitable to
their particular tax situation.
FMR
FMR is a wholly owned subsidiary of FMR Corp., a parent company organized
in 1972. At present, the principal operating activities of FMR Corp. are
those conducted by three of its divisions as follows: FSC, which is the
transfer and shareholder servicing agent for certain of the funds advised
by FMR; Fidelity Investments Institutional Operations Company, which
performs shareholder servicing functions for certain institutional
customers; and Fidelity Investments Retail Marketing Company, which
provides marketing services to various companies within the Fidelity
organization.
Several affiliates of FMR are also engaged in the investment advisory
business. Fidelity Management Trust Company provides trustee, investment
advisory, and administrative services to retirement plans and corporate
employee benefit accounts. FMR U.K. and FMR Far East, both wholly owned
subsidiaries of FMR formed in 1986, supply investment research, and may
supply portfolio management services, to FMR in connection with certain
funds advised by FMR. Analysts employed by FMR, FMR U.K., and FMR Far East
research and visit thousands of domestic and foreign companies each year.
FMR Texas Inc., a wholly owned subsidiary of FMR formed in 1989, supplies
portfolio management and research services in connection with certain money
market funds advised by FMR.
TRUSTEES AND OFFICERS
The Trustees and executive officers of the trust are listed below. Except
as indicated, each individual has held the office shown or other offices in
the same company for the last five years. All persons named as Trustees
also serve in similar capacities for other funds advised by FMR. Unless
otherwise noted, the business address of each Trustee and officer is 82
Devonshire Street, Boston, Massachusetts 02109, which is also the address
of FMR. Those Trustees who are "interested persons" (as defined in the
Investment Company Act of 1940) by virtue of their affiliation with either
the trust or FMR are indicated by an asterisk (*).
*EDWARD C. JOHNSON 3d, Trustee and President, is Chairman, Chief Executive
Officer and a Director of FMR Corp.; a Director and Chairman of the Board
and of the Executive Committee of FMR; Chairman and a Director of FMR Texas
Inc. (1989), Fidelity Management & Research (U.K.) Inc., and Fidelity
Management & Research (Far East) Inc.
*J. GARY BURKHEAD, Trustee and Senior Vice President, is President of FMR;
and President and a Director of FMR Texas Inc. (1989), Fidelity Management
& Research (U.K.) Inc. and Fidelity Management & Research (Far
East) Inc.
RALPH F. COX, 200 Rivercrest Drive, Fort Worth, TX, Trustee (1991), is
President of Greenhill Petroleum Corporation (petroleum exploration and
production, 1990). Prior to his retirement in March 1990, Mr. Cox was
President and Chief Operating Officer of Union Pacific Resources Company
(exploration and production). He is a Director of Bonneville Pacific
Corporation (independent power, 1989) and CH2M Hill Companies
(engineering). In addition, he served on the Board of Directors of the
Norton Company (manufacturer of industrial devices, 1983-1990) and
continues to serve on the Board of Directors of the Texas State Chamber of
Commerce, and is a member of advisory boards of Texas A&M University
and the University of Texas at Austin.
PHYLLIS BURKE DAVIS, 340 E. 64th Street #22C, New York, NY, Trustee (1992).
Prior to her retirement in September 1991, Mrs. Davis was the Senior Vice
President of Corporate Affairs of Avon Products, Inc. She is currently a
Director of BellSouth Corporation (telecommunications), Eaton Corporation
(manufacturing, 1991), and the TJX Companies, Inc. (retail stores, 1990),
and previously served as a Director of Hallmark Cards, Inc. (1985-1991) and
Nabisco Brands, Inc. In addition, she serves as a Director of the New York
City Chapter of the National Multiple Sclerosis Society, and is a member of
the Advisory Council of the International Executive Service Corps. and the
President's Advisory Council of The University of Vermont School of
Business Administration (1988).
RICHARD J. FLYNN, 77 Fiske Hill, Sturbridge, MA, Trustee, is a financial
consultant. Prior to September 1986, Mr. Flynn was Vice Chairman and a
Director of the Norton Company (manufacturer of industrial devices). He is
currently a Director of Mechanics Bank and a Trustee of College of the Holy
Cross and Old Sturbridge Village, Inc.
E. BRADLEY JONES, 30195 Chagrin Blvd., Suite 104W, Pepper Pike, OH, Trustee
(1990). Prior to his retirement in 1984, Mr. Jones was Chairman and Chief
Executive Officer of LTV Steel Company. Prior to May 1990, he was Director
of National City Corporation (a bank holding company) and National City
Bank of Cleveland. He is a Director of TRW Inc. (original equipment and
replacement products), Cleveland-Cliffs Inc (mining), NACCO Industries,
Inc. (mining and marketing), Consolidated Rail Corporation, Birmingham
Steel Corporation (1988), Hyster-Yale Materials Handling, Inc. (1989), and
RPM, Inc. (manufacturer of chemical products, 1990). In addition, he
serves as a Trustee of First Union Real Estate Investments; Chairman of the
Board of Trustees and a member of the Executive Committee of the Cleveland
Clinic Foundation, a Trustee and a member of the Executive Committee of
University School (Cleveland), and a Trustee of Cleveland Clinic Florida.
DONALD J. KIRK, 680 Steamboat Road, Apartment #1-North, Greenwich, CT,
Trustee, is a Professor at Columbia University Graduate School of Business
and a financial consultant. Prior to 1987, he was Chairman of the
Financial Accounting Standards Board. Mr. Kirk is a Director of General Re
Corporation (reinsurance), the National Arts Stabilization Fund, Greenwich
Hospital Association (1989), and Valuation Research Corp. (appraisals and
valuations, 1993).
*PETER S. LYNCH, Trustee (1990) is Vice Chairman of FMR (1992). Prior to
his retirement on May 31, 1990, he was a Director of FMR (1989) and
Executive Vice President of FMR (a position he held until March 31, 1991);
Vice President of Fidelity Magellan Fund and FMR Growth Group Leader; and
Managing Director of FMR Corp. Mr. Lynch was also Vice President of
Fidelity Investments Corporate Services (1991-1992). He is a Director of
W.R. Grace & Co. (chemicals, 1989) and Morrison Knudsen Corporation
(engineering and construction, 1988). In addition, he serves as a Trustee
of Boston College, Massachusetts Eye & Ear Infirmary, Historic
Deerfield (1989) and Society for the Preservation of New England
Antiquities, and as an Overseer of the Museum of Fine Arts of Boston
(1990).
GERALD C. McDONOUGH, 135 Aspenwood Drive, Cleveland, OH, Trustee (1989), is
Chairman of G.M. Management Group (strategic advisory services). Prior to
his retirement in July 1988, he was Chairman and Chief Executive Officer of
Leaseway Transportation Corp. (physical distribution services). Mr.
McDonough is a Director of ACME-Cleveland Corp. (metal working,
telecommunications and electronic products), Brush-Wellman Inc. (metal
refining), York International Corp. (air conditioning and refrigeration,
1989), and Commercial Intertech Corp. (water treatment equipment, 1992).
In addition, he serves as a Director for United Way Services of Greater
Cleveland, a member of the Executive Committee of the Weatherhead School of
Management, and as a Trustee of The Center for Economic Education.
EDWARD H. MALONE, 5601 Turtle Bay Drive #2104, Naples, FL, Trustee (1988).
Prior to his retirement in 1985, Mr. Malone was Chairman, General Electric
Investment Corporation and a Vice President of General Electric Company.
He is a Director of Allegheny Power Systems, Inc. (electric utility),
General Re Corporation (reinsurance) and Mattel Inc. (toy manufacturer).
He is also a Trustee of Rensselaer Polytechnic Institute and of Corporate
Property Investors and a member of the Advisory Boards of Butler Capital
Corporation Funds and Warburg, Pincus Partnership Funds.
THOMAS R. WILLIAMS, 21st Floor, 191 Peachtree Street, N.E., Atlanta, GA,
Trustee (1988), is President of The Wales Group, Inc. (management and
financial advisory services). Prior to retiring in 1987, Mr. Williams
served as Chairman of the Board of First Wachovia Corporation (bank holding
company), and Chairman and Chief Executive Officer of The First National
Bank of Atlanta and First Atlanta Corporation (bank holding company). He
is currently a Director of BellSouth Corporation (telecommunications),
ConAgra, Inc. (agricultural products), Fisher Business Systems, Inc.
(computer software, 1988), Georgia Power Company (electric utility), Gerber
Alley & Associates, Inc. (computer software), National Life Insurance
Company of Vermont, American Software, Inc. (1989), and AppleSouth, Inc.
(restaurants, 1992).
GARY L. FRENCH, Treasurer (1991). Prior to becoming Treasurer of the
Fidelity funds, Mr. French was Senior Vice President, Fund Accounting -
Fidelity Accounting & Custody Services Co. (1991); Vice President, Fund
Accounting - Fidelity Accounting & Custody Services Co. (1990); and
Senior Vice President, Chief Financial and Operations Officer - Huntington
Advisers, Inc. (1985-1990).
ARTHUR S. LORING, Secretary, is Vice President and General Counsel of FMR,
Vice President-Legal of FMR Corp., and Clerk of FDC.
ROBERT H. MORRISON, Manager, Security Transactions, is an employee of FMR.
Under a retirement program that became effective on November 1, 1989,
Trustees, upon reaching age 72, become eligible to participate in a defined
benefit retirement program under which they receive payments during their
lifetime from the fund based on their basic trustee fees and length of
service. Currently, Messrs. Robert L. Johnson, William R. Spaulding,
Bertram H. Witham, and David L. Yunich participate in the program.
As of the date of this Statement of Additional Information, FMR owned the
majority of the outstanding shares of the fund.
MANAGEMENT CONTRACT
The fund employs FMR to furnish investment advisory and other services.
Under its management contract with the fund, FMR acts as investment adviser
and, subject to the supervision of the Board of Trustees, directs the
investments of the fund in accordance with its investment objective,
policies, and limitations. FMR also provides the fund with all necessary
office facilities and personnel for servicing the fund's investments, and
compensates all officers of the trust, all Trustees who are "interested
persons" of the trust or of FMR, and all personnel of the trust or FMR
performing services relating to research, statistical, and investment
activities.
In addition, FMR or its affiliates, subject to the supervision of the Board
of Trustees, provide the management and administrative services necessary
for the operation of the fund. These services include providing facilities
for maintaining the fund's organization; supervising relations with
custodians, transfer and pricing agents, accountants, underwriters, and
other persons dealing with the fund; preparing all general shareholder
communications and conducting shareholder relations; maintaining the fund's
records and the registration of the fund's shares under federal and state
law; developing management and shareholder services for the fund; and
furnishing reports, evaluations, and analyses on a variety of subjects to
the Board of Trustees.
In addition to the management fee payable to FMR and the fees payable to
FSC, the fund pays all of its expenses, without limitation, that are not
assumed by those parties. The fund pays for typesetting, printing, and
mailing proxy material to shareholders, legal expenses, and the fees of the
custodian, auditor, and non-interested Trustees. Although the fund's
management contract provides that the fund will pay for typesetting,
printing, and mailing prospectuses, statements of additional information,
notices, and reports to existing shareholders, pursuant to the trust's
transfer agent agreement with FSC, FSC bears the cost of providing these
services to existing shareholders. Other expenses paid by the fund include
interest, taxes, brokerage commissions, the fund's proportionate share of
insurance premiums and Investment Company Institute dues, and the costs of
registering shares under federal and state securities laws. The fund is
also liable for such nonrecurring expenses as may arise, including costs of
any litigation to which the fund may be a party, and any obligation it may
have to indemnify the trust's officers and Trustees with respect to
litigation.
FMR is the fund's manager pursuant to a management contract dated July 15,
1993, which was approved by FMR, then the sole shareholder, on August 27,
1993. For the services of FMR under the contract, the fund pays FMR a
monthly management fee composed of the sum of two elements: a basic fee
and a performance adjustment based on a comparison of the fund's
performance to that of the Standard & Poor's 500 Composite Stock Price
Index (S&P 500).
COMPUTING THE BASIC FEE. The fund's basic fee rate is composed of two
elements: a group fee rate and an individual fund fee rate. The group fee
rate is based on the monthly average net assets of all of the registered
investment companies with which FMR has management contracts and is
calculated on a cumulative basis pursuant to the graduated fee rate
schedule shown on the left of the chart below. On the right, the effective
fee rate schedule shows the results of cumulatively applying the annualized
rates at varying asset levels. For example, the effective annual fee rate
at $199 billion of group net assets - their approximate level for June 1993
- - was .3286%, which is the weighted average of the respective fee rates for
each level of group net assets up to $200 billion.
GROUP FEE RATE SCHEDULE* EFFECTIVE ANNUAL FEE RATES
AVERAGE GROUP EFFECTIVE
GROUP ANNUALIZED NET ANNUAL
ASSETS RATE ASSETS FEE RATE
0 - $ 3 billion .520% $ 0.5 billion .5200%
3 - 6 .490 10 .4840
6 - 9 .460 20 .4398
9 - 12 .430 30 .4115
12 - 15 .400 40 .3944
15 - 18 .385 50 .3823
18 - 21 .370 60 .3728
21 - 24 .360 70 .3656
24 - 30 .350 80 .3599
30 - 36 .345 90 .3552
36 - 42 .340 100 .3512
42 - 48 .335 110 .3475
48 - 66 .325 120 .3444
66 - 84 .320 130 .3417
84 - 102 .315 140 .3394
102 - 138 .310 150 .3371
138 - 174 .305 160 .3351
Over 174 .300 170 .3333
180 .3316
190 .3299
200 .3284
The individual fund fee rate is .30%. Based on the average net assets of
funds advised by FMR for June 1993, the annual basic fee rate would be
calculated as follows:
Group Fee Rate Individual Fund Fee Rate Basic Fee Rate
.3286% + .30% = .6286%
One twelfth (1/12) of this annual basic fee rate is then applied to the
fund's average net assets for the current month, giving a dollar amount
which is the fee for that month.
COMPUTING THE PERFORMANCE ADJUSTMENT. The basic fee is subject to upward
or downward adjustment, depending upon whether, and to what extent, the
fund's investment performance for the performance period exceeds, or is
exceeded by, the record of the S&P 500 over the same period. The
performance period will commence with the first day of the first full month
of operation following the fund's commencement of operations. Starting
with the twelfth month, the performance adjustment will take effect. Each
month subsequent to the twelfth month, a new month will be added to the
performance period until the performance period equals 36 months.
Thereafter, the performance period will consist of the most recent month
plus the previous 35 months. Each percentage point of difference (up to a
maximum difference of + 10) is multiplied by a performance adjustment rate
of .02%. Thus, the maximum annualized adjustment rate is + .20%. This
performance comparison is made at the end of each month. One twelfth
(1/12) of this rate is then applied to the fund's average net assets for
the entire performance period, giving a dollar amount which will be added
to (or subtracted from) the basic fee.
The fund's performance is calculated based on change in net asset value.
For purposes of calculating the performance adjustment, any dividends or
capital gain distributions paid by the fund are treated as if reinvested in
fund shares at the net asset value as of the record date for payment. The
record of the S&P 500 is based on change in value and is adjusted for
any cash distributions from the companies whose securities compose the
S&P 500.
Because the adjustment to the basic fee is based on the fund's performance
compared to the investment record of the S&P 500, the controlling
factor is not whether the fund's performance is up or down per se, but
whether it is up or down more or less than the record of the S&P 500.
Moreover, the comparative investment performance of the fund is based
solely on the relevant performance period without regard to the cumulative
performance over a longer or shorter period of time.
To comply with the California Code of Regulations, FMR will reimburse the
fund if and to the extent that the fund's aggregate annual operating
expenses exceed specified percentages of its average net assets. The
applicable percentages are 2 1/2% of the first $30 million, 2% of the next
$70 million, and 1 1/2% of average net assets in excess of $100 million.
When calculating the fund's expenses for purposes of this regulation, the
fund may exclude interest, taxes, brokerage commissions, and extraordinary
expenses, as well as a portion of its custodian fees attributable to
investments in foreign securities.
SUB-ADVISERS. On July 15, 1993, FMR entered into sub-advisory agreements
with FMR U.K. and FMR Far East, pursuant to which FMR U.K. and FMR Far East
supply FMR with investment research and recommendations concerning foreign
securities for the benefit of the fund. The sub-advisory agreements
provide that FMR will pay fees to FMR U.K. and FMR Far East equal to 110%
and 105%, respectively, of FMR U.K.'s and FMR Far East's costs incurred in
connection with each agreement, said costs to be determined in relation to
the assets of the fund that benefits from the services of the sub-advisers.
CONTRACTS WITH COMPANIES AFFILIATED WITH FMR
FSC is transfer, dividend disbursing, and shareholders' servicing agent for
the fund. Under the trust's contract with FSC, the fund pays an annual fee
of $25.50 per basic retail account with a balance of $5,000 or more, $15.00
per basic retail account with a balance of less than $5,000, and a
supplemental activity charge of $5.61 for monetary transactions. These
fees and charges are subject to annual cost escalation based on postal rate
changes and changes in wage and price levels as measured by the National
Consumer Price Index for Urban Areas. With respect to certain institutional
client master accounts, the fund pays FSC a per account fee of $95.00 and
monetary transaction charges of $20.00 or $17.50, depending on the nature
of services provided. With respect to certain broker-dealer master
accounts, the fund pays FSC a per-account fee of $30, and a charge of $6
for monetary transactions. Fees for certain institutional retirement plan
accounts are based on the net assets of all such accounts in the fund.
Under the contract, FSC pays out-of-pocket expenses associated with
providing transfer agent services. In addition, FSC bears the expense of
typesetting, printing, and mailing prospectuses, statements of additional
information, and all other reports, notices, and statements to
shareholders, except proxy statements.
The trust's contract with FSC also provides that FSC will perform the
calculations necessary to determine the fund's net asset value per share
and dividends and maintain the fund's accounting records. The fee rates
are based on the fund's average net assets, specifically, .06% for the
first $500 million of average net assets and .03% for average net assets in
excess of $500 million. The fee is limited to a minimum of $45,000 and a
maximum of $750,000 per year. FSC also receives fees for administering the
fund's securities lending program. Securities lending fees are based on
the number and duration of individual securities loans.
The fund has a distribution agreement with FDC, a Massachusetts corporation
organized on July 18, 1960. FDC is a broker-dealer registered under the
Securities Exchange Act of 1934 and is a member of the National Association
of Securities Dealers, Inc. The distribution agreement calls for FDC to
use all reasonable efforts, consistent with its other business, to secure
purchasers for shares of the fund, which are continuously offered.
Promotional and administrative expenses in connection with the offer and
sale of shares are paid by FDC.
DESCRIPTION OF THE TRUST
TRUST ORGANIZATION. Fidelity Fifty is a fund of Fidelity Hastings Street
Trust (the trust), an open-end management investment company originally
organized under the name Fidelity Fund as a Massachusetts corporation on
May 1, 1930, and reorganized as a Massachusetts business trust on December
31, 1984. Its name was changed to Fidelity Hastings Street Trust on April
30, 1993. Currently there are two funds of the trust: Fidelity Fund and
Fidelity Fifty. The Declaration of Trust permits the Trustees to create
additional funds.
In the event that FMR ceases to be the investment adviser to the trust or a
fund, the right of the trust or fund to use the identifying name "Fidelity"
may be withdrawn.
The assets of the trust received for the issue or sale of shares of each
fund and all income, earnings, profits, and proceeds thereof, subject only
to the rights of creditors, are especially allocated to such fund, and
constitute the underlying assets of such fund. The underlying assets of
each fund are segregated on the books of account, and are to be charged
with the liabilities with respect to such fund and with a share of the
general expenses of the trust. Expenses with respect to the trust are to
be allocated in proportion to the asset value of the respective funds,
except where allocations of direct expense can otherwise be fairly made.
The officers of the trust, subject to the general supervision of the Board
of Trustees, have the power to determine which expenses are allocable to a
given fund, or which are general or allocable to all of the funds. In the
event of the dissolution or liquidation of the trust, shareholders of each
fund are entitled to receive as a class the underlying assets of such fund
available for distribution.
SHAREHOLDER AND TRUSTEE LIABILITY. The trust is an entity of the type
commonly known as a "Massachusetts business trust." Under Massachusetts
law, shareholders of such a trust may, under certain circumstances, be held
personally liable for the obligations of the trust. The Declaration of
Trust provides that the trust shall not have any claim against shareholders
except for the payment of the purchase price of shares and requires that
each agreement, obligation, or instrument entered into or executed by the
trust or the Trustees include a provision limiting the obligations created
thereby to the trust and its assets. The Declaration of Trust provides for
indemnification out of each fund's property of any shareholder held
personally liable for the obligations of the fund. The Declaration of
Trust also provides that each fund shall, upon request, assume the defense
of any claim made against any shareholder for any act or obligation of the
fund and satisfy any judgment thereon. Thus, the risk of a shareholder
incurring financial loss on account of shareholder liability is limited to
circumstances in which a fund itself would be unable to meet its
obligations. FMR believes that, in view of the above, the risk of personal
liability to shareholders is remote.
The Declaration of Trust further provides that the Trustees, if they have
exercised reasonable care, will not be liable for any neglect or
wrongdoing, but nothing in the Declaration of Trust protects Trustees
against any liability to which they would otherwise be subject by reason of
willful misfeasance, bad faith, gross negligence, or reckless disregard of
the duties involved in the conduct of their office.
VOTING RIGHTS. Each fund's capital consists of shares of beneficial
interest. The shares have no preemptive or conversion rights; the voting
and dividend rights, the right of redemption, and the privilege of exchange
are described in the Prospectus. Shares are fully paid and nonassessable,
except as set forth under the heading "Shareholder and Trustee Liability"
above. Shareholders representing 10% or more of the trust or a fund may,
as set forth in the Declaration of Trust, call meetings of the trust or a
fund for any purpose related to the trust or fund, as the case may be,
including, in the case of a meeting of the entire trust, the purpose of
voting on removal of one or more Trustees. The trust or any fund may be
terminated upon the sale of its assets to another open-end management
investment company, or upon liquidation and distribution of its assets, if
approved by vote of the holders of a majority of the outstanding shares of
the trust or the fund. If not so terminated, the trust and its funds will
continue indefinitely.
CUSTODIAN. Brown Brothers Harriman & Co., 40 Water Street, Boston,
Massachusetts, is custodian of the assets of the fund. The custodian is
responsible for the safekeeping of the fund's assets and the appointment of
subcustodian banks and clearing agencies. The custodian takes no part in
determining the investment policies of the fund or in deciding which
securities are purchased or sold by the fund. The fund may, however,
invest in obligations of the custodian and may purchase securities from or
sell securities to the custodian.
FMR, its officers and directors, its affiliated companies and the trust's
Trustees may from time to time have transactions with various banks,
including banks serving as custodians for certain of the funds advised by
FMR. The Boston branch of the fund's custodian leases its office space
from an affiliate of FMR at a lease payment which, when entered into, was
consistent with prevailing market rates. Transactions that have occurred
to date include mortgages and personal and general business loans. In the
judgment of FMR, the terms and conditions of those transactions were not
influenced by existing or potential custodial or other fund relationships.
AUDITOR. Coopers & Lybrand, One Post Office Square, Boston,
Massachusetts serves as the trust's independent accountant. The auditor
examines financial statements for the fund and provides other audit, tax,
and related services.
PART C - OTHER INFORMATION
Item 24. Financial Statements and Exhibits
(a) Financial Statements:
1. The unaudited financial statements and financial highlights included in
the semiannual report for Fidelity Fifty for the fiscal period September
17, 1993 (commencement of operations) through December 31, 1993 are
incorporated by reference into the fund's Statement of Additional
Information and are filed herein as Exhibit 24(a).
(b) Exhibits:
1. (a) Declaration of Trust dated September 27, 1984 is incorporated
herein by reference to Exhibit 1(a) to Post-Effective Amendment No. 69.
(b) Supplement to the Declaration of Trust dated January 14, 1985 is
incorporated herein by reference to Exhibit 1(b) to Post-Effective
Amendment No. 70.
(c) Supplement to the Declaration of Trust dated January 12, 1990 is
incorporated herein by reference to Exhibit 1(c) to Post-Effective
Amendment No. 84.
2. (a) By-laws of the Trust are incorporated herein by reference to Exhibit
2(a) to Post-Effective Amendment No. 69.
(b) Supplement to the By-laws of the Trust is incorporated herein by
reference to Exhibit 2(b) to Post-Effective Amendment No. 89.
(c) Amendment to the By-laws dated November 15, 1984 is incorporated
herein by reference to Exhibit 2(c) to Post-Effective Amendment No. 84.
3. Not applicable.
4. Not applicable.
5. (a) Management Contract between Fidelity Fund and Fidelity Management
& Research Company dated March 1, 1990 is incorporated herein by
reference to Exhibit 5(b) to Post-Effective Amendment No. 84.
(b) Sub-Advisory Agreement for Fidelity Fund between Fidelity Management
& Research Company and Fidelity Management & Research (U.K.) Inc.
on behalf of Fidelity Fund, dated March 1, 1990 is incorporated herein by
reference to Exhibit 5(c) to Post-Effective Amendment No. 84.
(c) Sub-Advisory Agreement for Fidelity Fund between Fidelity Management
& Research Company and Fidelity Management & Research (Far East)
Inc. on behalf of Fidelity Fund dated March 1, 1990 is incorporated herein
by reference to Exhibit 5(d) to Post-Effective Amendment No. 84.
(d) Management Contract between Fidelity Fifty and Fidelity Management
& Research Company, dated July 15, 1993 is incorporated herein by
reference to Exhibit 5(d) to Post-Effective Amendment No. 91.
(e) Sub-Advisory Agreement for Fidelity Fifty between Fidelity
Management & Research Company and Fidelity Management & Research
(U.K.) Inc., dated July 15, 1993 is incorporated herein by reference to
Exhibit 5(e) to Post-Effective Amendment No. 91.
(f) Sub-Advisory Agreement for Fidelity Fifty between Fidelity Management
& Research Company and Fidelity Management & Research (Far East)
Inc., dated July 15, 1993 is incorporated herein by reference to Exhibit
5(f) to Post-Effective Amendment No. 91.
6. (a) General Distribution Agreement between Fidelity Fund and Fidelity
Distributors Corporation, dated April 1, 1987 is incorporated herein by
reference to Exhibit 6 to Post-Effective Amendment No. 76.
(b) Amendment dated January 1, 1988 to General Distribution Agreement
between Fidelity Fund and Fidelity Distributors Corporation is incorporated
herein by reference to Exhibit 6(b) to Post-Effective Amendment No. 78.
(c) General Distribution Agreement between Registrant on behalf of
Fidelity Fifty and Fidelity Distributors Corporation, dated July 15, 1993
is incorporated herein by reference to Exhibit 6(c) to Post-Effective
Amendment No. 91.
7. Retirement Plan for Non-Interested Person Trustees, Directors or
General Partners, effective November 1, 1989, is incorporated herein by
reference to Exhibit 7 to Post-Effective Amendment No. 86.
8. (a) Custodian Agreement between Registrant and Chase Manhattan Bank,
dated July 18, 1991, is incorporated herein by reference to Exhibit 8(a) to
Post-Effective Amendment No. 87.
9. (a) Amended Service Agreement with Fidelity Service Co., dated June 1,
1989, is incorporated by reference as Exhibit 9(a) to Post-Effective
Amendment No. 82.
(b) Schedule A (Transfer Agent, Dividend and Distribution Disbursing
Agent and Shareholder Servicing Agent) to the Amended Service Agreement,
dated June 1, 1989, is incorporated herein by reference to Exhibit 9(b) to
Post-Effective Amendment No. 84.
(c) Schedule B (Agent to Perform Pricing and Bookkeeping) to the Amended
Service Agreement, dated June 1, 1989, is incorporated herein by reference
to Exhibit 9(c) to Post-Effective Amendment No. 84.
(d) Schedule C (Agent for Securities Lending Transactions) to the Amended
Service Agreement, dated June 1, 1989, is incorporated herein by reference
to Exhibit 9(d) to Post-Effective Amendment No. 84.
10. Not applicable.
11. Not applicable.
12. Not applicable.
13. Not applicable.
14. (a) Fidelity Individual Retirement Account Custodial Agreement and
Disclosure Statement are incorporated herein by reference to Exhibit 14(a)
to Post-Effective Amendment No. 85.
(b) Fidelity 403(b)(7) Custodial Account Agreement is incorporated herein
by reference to Exhibit 14(b) to Post Effective Amendment No. 86.
(c) Fidelity Defined Contribution Retirement Plan and Trust Agreement are
incorporated herein by reference to Exhibit 14(c) to Post-Effective
Amendment No. 85.
(d) Fidelity Defined Benefit Pension Plan and Trust are incorporated herein
by reference to Exhibit 14(d) to Post-Effective Amendment No. 85.
(e) Fidelity Group Individual Retirement Account Custodial Agreement and
Disclosure Statement is incorporated herein by reference to Exhibit 14(e)
to Post-Effective Amendment No. 85.
(f) Fidelity Master Plan for Savings and Investments is incorporated herein
by reference to Exhibit 14(f) to Post-Effective Amendment No. 86.
(g) Fidelity 401(a) Prototype Plan for Tax-Exempt Employers is incorporated
herein by reference to Exhibit 14(g) to Post-Effective Amendment No. 85.
15. (a) Distribution and Service Plan between Fidelity Fund and Fidelity.
Distributors Corporation
is incorporated herein by reference to Exhibit 15 to Post-Effective
Amendment No. 74.
16. (a) A schedule for computation of performance quotations is
incorporated herein by reference to Exhibit 16 to Post-Effective Amendment
No. 78.
(b) An additional schedule for computation of performance quotations is
incorporated herein by reference to Exhibit 16(b) to Post-Effective
Amendment No. 89.
(c) A schedule for computation of long-term moving averages is
incorporated herein by reference to Exhibit 16(c) to Post-Effective
Amendment No 92.
Item 25. Persons Controlled by or under Common Control with Registrant
The Board of Trustees of Registrant is the same as the board of other
funds advised by FMR, each of which has Fidelity Management & Research
Company as its investment adviser. In addition, the officers of these funds
are substantially identical. Nonetheless,
Registrant takes the position that it is not under common control with
these other funds since the power residing in the respective boards and
officers arises as the result of an official position with the respective
funds.
Item 26. Number of Holders of Securities March 31, 1994
Title of Class: Shares of Beneficial Interest Number of Record Holders
Name of Series
Fidelity Fund 117,447
Fidelity Fifty 7,849
Item 27. Indemnification
Article XI, Section 2 of the Declaration of Trust sets forth the
reasonable and fair means for determining whether indemnification shall be
provided to any past or present Trustee or officer. It states that the
Registrant shall indemnify any present or past Trustee, or officer to the
fullest extent permitted by law against liability and all expenses
reasonably incurred by him in connection with any claim, action suit or
proceeding in which he is involved by virtue of his service as a trustee,
an officer, or both. Additionally, amounts paid or incurred in settlement
of such matters are covered by this indemnification. Indemnification will
not be provided in certain circumstances, however. These include instances
of willful misfeasance, bad faith, gross negligence, and reckless disregard
of the duties involved in the conduct of the particular office involved.
Item 28. Business and Other Connections of Investment Adviser
FMR serves as investment adviser to a number of other investment
companies. The directors and officers of the Adviser have held, during the
past two fiscal years, the following positions of a substantial nature.
(1) FIDELITY MANAGEMENT & RESEARCH COMPANY
FMR serves as investment adviser to a number of other investment
companies. The directors and officers of the Adviser have held, during the
past two fiscal years, the following positions of a substantial nature.
<TABLE>
<CAPTION>
<S> <C>
Edward C. Johnson 3d Chairman of the Executive Committee of FMR;
President and Chief Executive Officer of FMR Corp.;
Chairman of the Board and a Director of FMR, FMR
Corp., FMR Texas Inc., Fidelity Management &
Research (U.K.) Inc. and Fidelity Management &
Research (Far East) Inc.; President and Trustee of
funds advised by FMR;
J. Gary Burkhead President of FMR; Managing Director of FMR Corp.;
President and a Director of FMR Texas Inc., Fidelity
Management & Research (U.K.) Inc. and Fidelity
Management & Research (Far East) Inc.; Senior
Vice President and Trustee of funds advised by FMR.
Peter S. Lynch Vice Chairman of FMR (1992).
David Breazzano Vice President of FMR (1993) and of a fund advised by
FMR.
Stephan Campbell Vice President of FMR (1993).
Rufus C. Cushman, Jr. Vice President of FMR and of funds advised by FMR;
Corporate Preferred Group Leader.
Will Danof Vice President of FMR (1993) and of a fund advised by
FMR.
Scott DeSano Vice President of FMR (1993).
Penelope Dobkin Vice President of FMR and of a fund advised by FMR.
Larry Domash Vice President of FMR (1993).
George Domolky Vice President of FMR (1993) and of a fund advised by
FMR.
Charles F. Dornbush Senior Vice President of FMR; Chief Financial Officer
of the Fidelity funds; Treasurer of FMR Texas Inc.,
Fidelity Management & Research (U.K.) Inc., and
Fidelity Management & Research (Far East) Inc.
Robert K. Duby Vice President of FMR.
Margaret L. Eagle Vice President of FMR and of a fund advised by FMR.
Kathryn L. Eklund Vice President of FMR.
Richard B. Fentin Senior Vice President of FMR (1993) and of a fund
advised by FMR.
Daniel R. Frank Vice President of FMR and of funds advised by FMR.
Gary L. French Vice President of FMR and Treasurer of the funds
advised by FMR. Prior to assuming the position as
Treasurer he was Senior Vice President, Fund
Accounting - Fidelity Accounting & Custody
Services Co.
Michael S. Gray Vice President of FMR and of funds advised by FMR.
Barry A. Greenfield Vice President of FMR and of a fund advised by FMR.
William J. Hayes Senior Vice President of FMR; Income/Growth Group
Leader and International Group Leader.
Robert Haber Vice President of FMR and of funds advised by FMR.
Daniel Harmetz Vice President of FMR and of a fund advised by FMR.
Ellen S. Heller Vice President of FMR.
John Hickling Vice President of FMR (1993) and of funds advised by
FMR.
Robert F. Hill Vice President of FMR; and Director of Technical
Research.
Stephan Jonas Vice President of FMR (1993).
David B. Jones Vice President of FMR (1993).
Steven Kaye Vice President of FMR (1993) and of a fund advised by
FMR.
Frank Knox Vice President of FMR (1993).
Robert A. Lawrence Senior Vice President of FMR (1993); and High
Income Group Leader.
Alan Leifer Vice President of FMR and of a fund advised by FMR.
Harris Leviton Vice President of FMR (1993) and of a fund advised by
FMR.
Bradford E. Lewis Vice President of FMR and of funds advised by FMR.
Robert H. Morrison Vice President of FMR and Director of Equity Trading.
David Murphy Vice President of FMR and of funds advised by FMR.
Jacques Perold Vice President of FMR.
Brian Posner Vice President of FMR (1993) and of a fund advised by
FMR.
Anne Punzak Vice President of FMR and of funds advised by FMR.
Richard A. Spillane Vice President of FMR and of funds advised by FMR;
and Director of Equity Research.
Robert E. Stansky Senior Vice President of FMR (1993) and of funds
advised by FMR.
Thomas Steffanci Senior Vice President of FMR (1993); and
Fixed-Income Division Head.
Gary L. Swayze Vice President of FMR and of funds advised by FMR;
and Tax-Free Fixed-Income Group Leader.
Donald Taylor Vice President of FMR (1993) and of funds advised by
FMR.
Beth F. Terrana Senior Vice President of FMR (1993) and of funds
advised by FMR.
Joel Tillinghast Vice President of FMR (1993) and of a fund advised by
FMR.
Robert Tucket Vice President of FMR.
George A. Vanderheiden Senior Vice President of FMR; Vice President of funds
advised by FMR; and Growth Group Leader.
Jeffrey Vinik Senior Vice President of FMR (1993) and of a fund
advised by FMR.
Guy E. Wickwire Vice President of FMR and of funds advised by FMR.
Arthur S. Loring Senior Vice President (1993), Clerk and General
Counsel of FMR; Vice President, Legal of FMR Corp.;
and Secretary of funds advised by FMR.
</TABLE>
(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.) FMR U.K.
provides investment advisory services to Fidelity Management & Research
Company and Fidelity Management Trust Company. The directors and officers
of the Sub-Adviser have held the following positions of a substantial
nature during the past two fiscal years.
<TABLE>
<CAPTION>
<S> <C> <C>
Edward C. Johnson 3d Chairman and Director of FMR U.K.; Chairman of the
Executive Committee of FMR; Chief Executive Officer
of FMR Corp.; Chairman of the Board and a Director of
FMR, FMR Corp., FMR Texas Inc., and Fidelity
Management & Research (Far East) Inc.; President
and Trustee of funds advised by FMR.
J. Gary Burkhead President and Director of FMR U.K.; President of FMR;
Managing Director of FMR Corp.; President and a
Director of FMR Texas Inc. and Fidelity Management
& Research (Far East) Inc.; Senior Vice President
and Trustee of funds advised by FMR.
Richard C. Habermann Senior Vice President of FMR U.K.; Senior Vice
President of Fidelity Management & Research (Far
East) Inc.; Director of Worldwide Research of FMR.
Charles F. Dornbush Treasurer of FMR U.K.; Treasurer of Fidelity
Management & Research (Far East) Inc.; Treasurer
of FMR Texas Inc.; Senior Vice President and Chief
Financial Officer of the Fidelity funds.
David Weinstein Clerk of FMR U.K.; Clerk of Fidelity Management
& Research (Far East) Inc.; Secretary of FMR
Texas Inc..
</TABLE>
(3) FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC. (FMR Far East)
FMR Far East provides investment advisory services to Fidelity Management
& Research Company and Fidelity Management Trust Company. The
directors and officers of the Sub-Adviser have held the following positions
of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman and Director of FMR Far East; Chairman of
the Executive Committee of FMR; Chief Executive
Officer of FMR Corp.; Chairman of the Board and a
Director of FMR, FMR Corp., FMR Texas Inc. and
Fidelity Management & Research (U.K.) Inc.;
President and Trustee of funds advised by FMR.
J. Gary Burkhead President and Director of FMR Far East; President of
FMR; Managing Director of FMR Corp.; President and
a Director of FMR Texas Inc. and Fidelity Management
& Research (U.K.) Inc.; Senior Vice President and
Trustee of funds advised by FMR.
Richard C. Habermann Senior Vice President of FMR Far East; Senior Vice
President of Fidelity Management & Research
(U.K.) Inc.; Director of Worldwide Research of FMR.
William R. Ebsworth Vice President of FMR Far East.
Bill Wilder Vice President of FMR Far East (1993).
Charles F. Dornbush Treasurer of FMR Far East; Treasurer of Fidelity
Management & Research (U.K.) Inc.; Treasurer of
FMR Texas Inc.; Senior Vice President and Chief
Financial Officer of the Fidelity funds.
David C. Weinstein Clerk of FMR Far East; Clerk of Fidelity Management
& Research (U.K.) Inc.; Secretary of FMR Texas
Inc..
Item 29. Principal Underwriters
(a) Fidelity Distributors Corporation (FDC) acts as distributor for most
funds advised by FMR and the following other funds:
CrestFunds, Inc.
The Freedom Fund
ARK Funds
(b)
Name and Principal Positions and Offices Positions and Offices
Business Address* With Underwriter With Registrant
Edward C. Johnson 3d Director Trustee, President
Nita B. Kincaid Director None
W. Humphrey Bogart Director None
Kurt A. Lang President None
William Adair Senior Vice President None
Thomas W. Littauer Senior Vice President None
Arthur S. Loring Vice President and Clerk Secretary
* 82 Devonshire Street, Boston, MA
(c) Not applicable.
Item 30. Location of Accounts and Records
All accounts, books, and other documents required to be maintained by
Section 31a of the 1940 Act and the Rules promulgated thereunder are
maintained by Fidelity Management & Research Company or Fidelity
Service Co., 82 Devonshire Street, Boston, MA 02109, or the funds'
respective custodians, The Chase Manhattan Bank, 1211 Avenue of the
Americas, New York, N.Y. and Brown Brothers Harriman & Co., 40 Water
Street, Boston, MA.
Item. 31. Management Services
Not applicable.
Item 32. Undertakings
(a) The Registrant undertakes for Fidelity Fifty: 1) to call a meeting
of shareholders for the purpose of voting upon the question of removal of a
trustee or trustees, when requested to do so by record holders of not less
than 10% of its outstanding shares; and 2) to assist in communications
with other shareholders pursuant to Section 16(c)(1) and (2), whenever
shareholders meeting the qualifications set forth in Section 16(c) seek the
opportunity to communicate with other shareholders with a view toward
requesting a meeting.
(b) The Registrant on behalf of Fidelity Fund and Fidelity Fifty, provided
the information required by Item 5A is contained in the annual report,
undertakes to furnish each person to whom a prospectus has been delivered,
upon their request and without charge, a copy of the Registrant's latest
annual report to shareholders.
SIGNATURES
Pursuant to the requirements of the Securities Act of 1933 and the
Investment Company Act of 1940, the Registrant certifies that it meets all
of the requirements for the effectiveness of this Registration Statement
pursuant to Rule 485(b) under the Securities Act of 1933 and has duly
caused this Post-Effective Amendment No. 94 to the Registration Statement
to be signed on its behalf by the undersigned, thereunto duly authorized,
in the City of Boston, and Commonwealth of Massachusetts, on the 16th day
of May 1994.
Fidelity Hastings Street Trust
By /s/Edward C. Johnson 3d (dagger)
Edward C. Johnson 3d, President
Pursuant to the requirements of the Securities Act of 1933, this
Registration Statement has been signed below by the following persons in
the capacities and on the dates indicated.
(Signature) (Title) (Date)
<TABLE>
<CAPTION>
<S> <C> <C>
/s/Edward C. Johnson 3d(dagger) President and Trustee May 16, 1994
Edward C. Johnson 3d (Principal Executive Officer)
</TABLE>
/s/Gary L. French Treasurer May 16, 1994
Gary L. French
/s/J. Gary Burkhead Trustee May 16, 1994
J. Gary Burkhead
/s/Ralph F. Cox * Trustee May 16, 1994
Ralph F. Cox
/s/Phyllis Burke Davis * Trustee May 16, 1994
Phyllis Burke Davis
/s/Richard J. Flynn * Trustee May 16, 1994
Richard J. Flynn
/s/E. Bradley Jones * Trustee May 16, 1994
E. Bradley Jones
/s/Donald J. Kirk * Trustee May 16, 1994
Donald J. Kirk
/s/Peter S. Lynch * Trustee May 16, 1994
Peter S. Lynch
/s/Edward H. Malone * Trustee May 16, 1994
Edward H. Malone
/s/Marvin L. Mann_____* Trustee May 16, 1994
Marvin L. Mann
/s/Gerald C. McDonough* Trustee May 16, 1994
Gerald C. McDonough
/s/Thomas R. Williams * Trustee May 16, 1994
Thomas R. Williams
(dagger) Signatures affixed by J. Gary Burkhead pursuant to a power of
attorney dated October 20, 1993 and filed herewith.
* Signature affixed by Robert C. Hacker pursuant to a power of attorney
dated October 20, 1993 and filed herewith.
POWER OF ATTORNEY
We, the undersigned Directors, Trustees or General Partners, as the case
may be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Institutional Trust
Fidelity Advisor Series II Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Magellan Fund
Fidelity Advisor Series IV Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series V Fidelity Money Market Trust
Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series VII Fidelity Municipal Trust
Fidelity Advisor Series VIII Fidelity New York Municipal Trust
Fidelity California Municipal Trust Fidelity Puritan Trust
Fidelity Capital Trust Fidelity School Street Trust
Fidelity Charles Street Trust Fidelity Securities Fund
Fidelity Commonwealth Trust Fidelity Select Portfolios
Fidelity Congress Street Fund Fidelity Sterling Performance Portfolio, L.P.
Fidelity Contrafund Fidelity Summer Street Trust
Fidelity Corporate Trust Fidelity Trend Fund
Fidelity Court Street Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Destiny Portfolios Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Union Street Trust
Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Exchange Fund Spartan U.S. Treasury Money Market
Fidelity Financial Trust Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Fidelity Government Securities Fund Variable Insurance Products Fund II
Fidelity Hastings Street Trust
Fidelity Income Fund
</TABLE>
plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individuals serve as Board Members (collectively, the "Funds"), hereby
severally constitute and appoint Arthur J. Brown, Arthur C. Delibert,
Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A.
Xupolos, each of them singly, our true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to sign
for us and in our names in the appropriate capacities, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
our names and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission, hereby ratifying
and confirming all that said attorneys-in-fact or their substitutes may do
or cause to be done by virtue hereof.
WITNESS our hands on this twentieth day of October, 1993.
/s/Edward C. Johnson 3d /s/Peter S. Lynch
Edward C. Johnson 3d Peter S. Lynch
/s/J. Gary Burkhead /s/Edward H. Malone
J. Gary Burkhead Edward H. Malone
/s/Richard J. Flynn /s/Gerald C. McDonough
Richard J. Flynn Gerald C. McDonough
/s/E. Bradley Jones /s/Thomas R. Williams
E. Bradley Jones Thomas R. Williams
/s/Donald J. Kirk
Donald J. Kirk
POWER OF ATTORNEY
I, the undersigned President and Director, Trustee or General Partner, as
the case may be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Institutional Trust
Fidelity Advisor Series II Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Magellan Fund
Fidelity Advisor Series IV Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series V Fidelity Money Market Trust
Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series VII Fidelity Municipal Trust
Fidelity Advisor Series VIII Fidelity New York Municipal Trust
Fidelity California Municipal Trust Fidelity Puritan Trust
Fidelity Capital Trust Fidelity School Street Trust
Fidelity Charles Street Trust Fidelity Securities Fund
Fidelity Commonwealth Trust Fidelity Select Portfolios
Fidelity Congress Street Fund Fidelity Sterling Performance Portfolio, L.P.
Fidelity Contrafund Fidelity Summer Street Trust
Fidelity Corporate Trust Fidelity Trend Fund
Fidelity Court Street Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Destiny Portfolios Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Union Street Trust
Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Exchange Fund Spartan U.S. Treasury Money Market
Fidelity Financial Trust Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Fidelity Government Securities Fund Variable Insurance Products Fund II
Fidelity Hastings Street Trust
Fidelity Income Fund
</TABLE>
plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individual serves as President and Board Member (collectively, the
"Funds"), hereby severally constitute and appoint J. Gary Burkhead, my true
and lawful attorney-in-fact, with full power of substitution, and with full
power to sign for me and in my name in the appropriate capacity, all
Pre-Effective Amendments to any Registration Statements of the Funds, any
and all subsequent Post-Effective Amendments to said Registration
Statements, any Registration Statements on Form N-14, and any supplements
or other instruments in connection therewith, and generally to do all such
things in my name and behalf in connection therewith as said
attorney-in-fact deem necessary or appropriate, to comply with the
provisions of the Securities Act of 1933 and Investment Company Act of
1940, and all related requirements of the Securities and Exchange
Commission. I hereby ratify and confirm all that said attorneys-in-fact or
their substitutes may do or cause to be done by virtue hereof.
WITNESS my hand on the date set forth below.
/s/Edward C. Johnson 3d October 20, 1993
Edward C. Johnson 3d
POWER OF ATTORNEY
I, the undersigned Director, Trustee or General Partner, as the case may
be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Magellan Fund
Fidelity Advisor Series III Fidelity Massachusetts Municipal Trust
Fidelity Advisor Series IV Fidelity Money Market Trust
Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series VIII Fidelity New York Municipal Trust
Fidelity California Municipal Trust Fidelity Puritan Trust
Fidelity Capital Trust Fidelity School Street Trust
Fidelity Charles Street Trust Fidelity Select Portfolios
Fidelity Commonwealth Trust Fidelity Sterling Performance Portfolio, L.P.
Fidelity Congress Street Fund Fidelity Summer Street Trust
Fidelity Contrafund Fidelity Trend Fund
Fidelity Deutsche Mark Performance Fidelity Union Street Trust
Portfolio, L.P. Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Devonshire Trust Fidelity U.S. Investments-Government Securities
Fidelity Financial Trust Fund, L.P.
Fidelity Fixed-Income Trust Fidelity Yen Performance Portfolio, L.P.
Fidelity Government Securities Fund Spartan U.S. Treasury Money Market
Fidelity Hastings Street Trust Fund
Fidelity Income Fund Variable Insurance Products Fund
Fidelity Institutional Trust Variable Insurance Products Fund II
Fidelity Investment Trust
</TABLE>
plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individual serves as a Board Member (collectively, the "Funds"), hereby
severally constitute and appoint Arthur J. Brown, Arthur C. Delibert,
Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A.
Xupolos, each of them singly, my true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to sign
for me and in my name in the appropriate capacity, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
my name and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission, hereby ratifying
and confirming all that said attorneys-in-fact or their substitutes may do
or cause to be done by virtue hereof.
WITNESS my hand on the date set forth below.
/s/Ralph F. Cox October 20, 1993
Ralph F. Cox
POWER OF ATTORNEY
I, the undersigned Director, Trustee or General Partner, as the case may
be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Mt. Vernon Street Trust
Fidelity Advisor Series IV Fidelity School Street Trust
Fidelity Advisor Series VI Fidelity Select Portfolios
Fidelity Advisor Series VIII Fidelity Sterling Performance Portfolio, L.P.
Fidelity Beacon Street Trust Fidelity Trend Fund
Fidelity Capital Trust Fidelity Union Street Trust
Fidelity Commonwealth Trust Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Contrafund Fidelity U.S. Investments-Government Securities
Fidelity Deutsche Mark Performance Fund, L.P.
Portfolio, L.P. Fidelity Yen Performance Portfolio, L.P.
Fidelity Devonshire Trust Spartan U.S. Treasury Money Market
Fidelity Financial Trust Fund
Fidelity Fixed-Income Trust Variable Insurance Products Fund
Fidelity Government Securities Fund Variable Insurance Products Fund II
Fidelity Hastings Street Trust
Fidelity Institutional Trust
</TABLE>
plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individual serves as a Board Member (collectively, the "Funds"), hereby
severally constitute and appoint Arthur J. Brown, Arthur C. Delibert,
Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A.
Xupolos, each of them singly, my true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to sign
for me and in my name in the appropriate capacity, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
my name and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission, hereby ratifying
and confirming all that said attorneys-in-fact or their substitutes may do
or cause to be done by virtue hereof.
WITNESS my hand on the date set forth below.
/s/Phyllis Burke Davis October 20, 1993
Phyllis Burke Davis
POWER OF ATTORNEY
I, the undersigned Director, Trustee or General Partner, as the case may
be, of the following investment companies:
<TABLE>
<CAPTION>
<S> <C>
Fidelity Advisor Series I Fidelity Investment Trust
Fidelity Advisor Series III Fidelity Special Situations Fund
Fidelity Advisor Series IV Fidelity Sterling Performance Portfolio, L.P.
Fidelity Advisor Series VI Fidelity Trend Fund
Fidelity Advisor Series VII Fidelity U.S. Investments-Bond Fund, L.P.
Fidelity Advisor Series VIII Fidelity U.S. Investments-Government Securities
Fidelity Contrafund Fund, L.P.
Fidelity Deutsche Mark Performance Fidelity Yen Performance Portfolio, L.P.
Portfolio, L.P. Spartan U.S. Treasury Money Market
Fidelity Fixed-Income Trust Fund
Fidelity Government Securities Fund Variable Insurance Products Fund
Fidelity Hastings Street Trust Variable Insurance Products Fund II
Fidelity Institutional Trust
</TABLE>
plus any other investment company for which Fidelity Management &
Research Company acts as investment adviser and for which the undersigned
individual serves as a Board Member (collectively, the "Funds"), hereby
severally constitute and appoint Arthur J. Brown, Arthur C. Delibert,
Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A.
Xupolos, each of them singly, my true and lawful attorneys-in-fact, with
full power of substitution, and with full power to each of them, to sign
for me and in my name in the appropriate capacity, all Pre-Effective
Amendments to any Registration Statements of the Funds, any and all
subsequent Post-Effective Amendments to said Registration Statements, any
Registration Statements on Form N-14, and any supplements or other
instruments in connection therewith, and generally to do all such things in
my name and behalf in connection therewith as said attorneys-in-fact deem
necessary or appropriate, to comply with the provisions of the Securities
Act of 1933 and Investment Company Act of 1940, and all related
requirements of the Securities and Exchange Commission, hereby ratifying
and confirming all that said attorneys-in-fact or their substitutes may do
or cause to be done by virtue hereof.
WITNESS my hand on the date set forth below.
/s/Marvin L. Mann October 20, 1993
Marvin L. Mann
EXHIBIT 24(A)(2_FIDELITY_LOGOS)
FIDELITY FIFTY
SEMIANNUAL REPORT
DECEMBER 31, 1993
INVESTMENT SUMMARY
TOP TEN STOCKS AS OF DECEMBER 31, 1993
% OF FUND'S INVESTMENTS
Stanhome, Inc. 2.5
Amgen, Inc. 2.4
Cooper Tire & Rubber Co. 2.2
COR Therapeutics, Inc. 2.2
Enterra Corp. 2.1
Chicago & North Western
Holdings 2.1
Corp.
AMR Corp. 2.0
Canadaigua Wine Co. Class A 2.0
CSX Corp. 2.0
International Business Machines
Corp. 2.0
TOP FIVE INDUSTRIES AS OF DECEMBER 31, 1993
% OF FUND'S INVESTMENTS
Health 13.3
Media & Leisure 11.3
Technology 10.8
Energy 8.0
Transportation 7.9
ASSET ALLOCATION AS OF DECEMBER 31, 1993
Row: 1, Col: 1, Value: 17.1
Row: 1, Col: 2, Value: 2.0
Row: 1, Col: 3, Value: 22.4
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 20.0
Row: 1, Col: 6, Value: 20.0
Stocks 82.4%
U.S. Treasury obligations 0.5%
Short-term investments 17.1%
INVESTMENTS DECEMBER 31, 1993 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 82.4%
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 4.3%
CHEMICALS & PLASTICS - 4.3%
Akzo NV sponsored ADR 15,400 $ 744,991 01019930
GEON 31,400 741,825 37246W10
Union Carbide Corp. 39,100 874,863 90558110
2,361,679
CONGLOMERATES - 1.5%
United Technologies Corp. 13,000 806,000 91301710
CONSTRUCTION & REAL ESTATE - 3.2%
BUILDING MATERIALS - 3.2%
Masco Corp. 23,900 884,300 57459910
USG Corp. (a) 30,500 892,125 90329340
1,776,425
DURABLES - 4.5%
AUTOS, TIRES, & ACCESSORIES - 4.5%
Chrysler Corp. 14,500 772,125 17119610
Cooper Tire & Rubber Co. 48,500 1,212,500 21683110
Smith (A.O.) Corp. Class B 14,000 500,500 83186520
2,485,125
ENERGY - 8.0%
ENERGY SERVICES - 5.2%
BJ Services Co. (a) 50,400 970,200 05548210
Enterra Corp. (a) 56,400 1,156,200 29380510
Western Co. of North America (a) 57,700 742,888 95804340
2,869,288
INDEPENDENT POWER - 1.6%
Thermo Electron Corp. 20,850 875,700 88355610
OIL & GAS - 1.2%
Mobil Corp. 8,000 632,000 60705910
TOTAL ENERGY 4,376,988
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - 3.6%
BANKS - 1.5%
West One Bancorp 29,100 $ 829,350 95482810
INSURANCE - 1.6%
St. Paul Companies, Inc. (The) 9,800 880,775 79286010
SAVINGS & LOANS - 0.5%
Coast Savings Financial, Inc. (a) 18,700 266,475 19039M10
TOTAL FINANCE 1,976,600
HEALTH - 13.3%
DRUGS & PHARMACEUTICALS - 6.9%
Amgen, Inc. (a) 26,000 1,287,000 03116210
COR Therapeutics, Inc. (a) 78,300 1,184,288 21775310
Elan PLC ADR (a) 24,300 1,029,713 28413120
Liposome Co, Inc. (a) 33,000 297,000 53631110
3,798,001
MEDICAL EQUIPMENT & SUPPLIES - 4.9%
Boston Scientific Corp. (a) 78,500 981,250 10113710
Johnson & Johnson 22,000 984,500 47816010
Medtronic, Inc. 8,600 706,275 58505510
2,672,025
MEDICAL FACILITIES MANAGEMENT - 1.5%
United HealthCare Corp. 11,100 842,213 91058110
TOTAL HEALTH 7,312,239
INDUSTRIAL MACHINERY & EQUIPMENT - 1.7%
Joy Technologies, Inc. Class A (a) 75,400 904,800 48120610
MEDIA & LEISURE - 11.3%
BROADCASTING - 2.1%
Home Shopping Network, Inc. 23,800 354,025 43735110
Time Warner, Inc. 17,500 774,375 88731510
1,128,400
LODGING & GAMING - 2.4%
President Riverboat Casinos, Inc. (a) 15,200 334,400 74084810
Promus Companies, Inc. (a) 21,000 960,750 74342A10
1,295,150
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
PUBLISHING - 5.5%
Gannett Co., Inc. 14,500 $ 830,125 36473010
Harcourt General, Inc. 11,300 409,625 41163G10
Meredith Corp. 26,200 1,048,000 58943310
Times Mirror Co., Series A 21,600 720,900 88736010
3,008,650
RESTAURANTS - 1.3%
McDonald's Corp. 12,700 723,900 58013510
TOTAL MEDIA & LEISURE 6,156,100
NONDURABLES - 6.0%
BEVERAGES - 2.0%
Canadaigua Wine Co. Class A (a) 35,000 1,102,500 13721920
HOUSEHOLD PRODUCTS - 4.0%
Premark International, Inc. 9,800 786,450 74045910
Stanhome, Inc. 40,700 1,378,713 85442510
2,165,163
TOTAL NONDURABLES 3,267,663
RETAIL & WHOLESALE - 3.1%
APPAREL STORES - 3.1%
Burlington Coat Factory Warehouse Corp. (a) 44,900 1,027,088 12157910
Gap, Inc. 16,700 657,563 36476010
1,684,651
TECHNOLOGY - 10.8%
COMMUNICATIONS EQUIPMENT - 0.9%
Cisco Systems, Inc. (a) 7,900 510,538 17275R10
COMPUTER SERVICES & SOFTWARE - 3.0%
Equifax, Inc. 32,000 876,000 29442910
Structural Dynamics Research Corp. (a) 42,500 733,125 86355510
1,609,125
COMPUTERS & OFFICE EQUIPMENT - 5.7%
Amdahl Corp. 124,000 744,000 02390510
International Business Machines Corp. 18,900 1,067,850 45920010
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Sequent Computer Systems, Inc. (a) 55,600 $ 847,900 81733810
Silicon Graphics, Inc. (a) 19,000 470,250 82705610
3,130,000
ELECTRONICS - 1.2%
Maxim Integrated Products, Inc. (a) 13,700 655,888 57772K10
TOTAL TECHNOLOGY 5,905,551
TRANSPORTATION - 7.9%
AIR TRANSPORTATION - 3.9%
AMR Corp. (a) 16,700 1,118,900 00176510
Comair Holdings, Inc. 35,000 800,625 19978910
UAL Corp. (a) 1,400 204,400 90254910
2,123,925
RAILROADS - 4.0%
CSX Corp. 13,200 1,069,200 12640810
Chicago & North Western Holdings Corp. (a) 44,900 1,122,500
16715510
2,191,700
TOTAL TRANSPORTATION 4,315,625
UTILITIES - 3.2%
ELECTRIC UTILITY - 1.6%
Southern Co. 19,800 873,675 84258710
TELEPHONE SERVICES - 1.6%
ALC Communications Corp. (a) 30,200 868,250 00157530
TOTAL UTILITIES 1,741,925
TOTAL COMMON STOCKS
(Cost $43,134,267) 45,071,371
U.S. TREASURY OBLIGATIONS - 0.5%
PRINCIPAL VALUE (NOTE 1)
AMOUNT
U.S. Treasury Bills, yields at
date of purchase 2.98-3.10%, 2/10/94 (b)
(Cost $ 249,204) $250,000 $ 249,204 912794H8
REPURCHASE AGREEMENTS - 17.1%
MATURITY
AMOUNT
Investments in repurchase agreements,
(U.S. Treasury obligations), in a
joint trading account at 3.23%
dated 12/31/93 due 1/3/94 $9,368,841 9,368,000
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $52,751,471) $ 54,688,575
FUTURES CONTRACTS
EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
14 S&P 500 Futures Contracts March 1994 $ 3,268,650 $ 6,635
THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 6.0%
LEGEND
1. Non-income producing
2. Security pledged to cover margin requirements for futures contracts. At
the period end, the value of securities pledged amounted to $249,204.
INCOME TAX INFORMATION
At December 31, 1993, the aggregate cost of investment securities for
income tax purposes was $52,751,471. Net unrealized appreciation aggregated
$1,937,104, of which $2,701,527 related to appreciated investment
securities and $764,423 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
DECEMBER 31, 1993 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 54,688,575
agreements of $9,368,000) (cost $52,751,471) (Notes
1 and 2) - See accompanying schedule
Cash 561
Receivable for investments sold 3,124,317
Receivable for fund shares sold 1,182,125
Dividends receivable 48,479
TOTAL ASSETS 59,044,057
LIABILITIES
Payable for investments purchased $ 2,890,704
Payable for fund shares redeemed 5,144,276
Accrued management fee 27,776
Payable for daily variation on futures contracts 19,110
Other payables and accrued expenses 61,111
TOTAL LIABILITIES 8,142,977
NET ASSETS $ 50,901,080
Net Assets consist of:
Paid in capital $ 50,424,185
Distributions in excess of net investment income (103,673)
Accumulated undistributed net realized gain (loss) on (1,363,171)
investments
Net unrealized appreciation (depreciation) on:
Investment securities 1,937,104
Futures contracts 6,635
NET ASSETS, for 4,808,963 shares outstanding $ 50,901,080
NET ASSET VALUE and redemption price per share $10.58
($50,901,080 (divided by) 4,808,963 shares)
Maximum offering price per share (100/97 of $10.58) $10.91
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
SEPTEMBER 17, 1993 (COMMENCEMENT OF OPERATIONS) TO DECEMBER 31, 1993 (UNAUDITED)
INVESTMENT INCOME $ 120,666
Dividends
Interest 44,434
TOTAL INCOME 165,100
EXPENSES
Management fee (Note 4) $ 64,359
Transfer agent fees (Note 4) 81,065
Accounting fees and expenses (Note 4) 13,197
Non-interested trustees' compensation 19
Custodian fees and expenses 5,399
Registration fees 48,448
Audit 6,220
Legal 10
Miscellaneous 120
TOTAL EXPENSES 218,837
NET INVESTMENT INCOME (LOSS) (53,737)
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1 AND 3)
Net realized gain (loss) on:
Investment securities (1,383,546)
Futures contracts 20,375 (1,363,171)
Change in net unrealized appreciation (depreciation) on:
Investment securities 1,937,104
Futures contracts 6,635 1,943,739
NET GAIN (LOSS) 580,568
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 526,831
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C>
SEPTEMBER 17, 1993
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1993
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ (53,737)
Net investment income (loss)
Net realized gain (loss) on investments (1,363,171)
Change in net unrealized appreciation (depreciation) on 1,943,739
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM 526,831
OPERATIONS
Distributions to shareholders from net investment income (49,936)
Share transactions 76,963,261
Net proceeds from sales of shares
Reinvestment of distributions from net investment income 49,556
Cost of shares redeemed (26,588,632)
Net increase (decrease) in net assets resulting from share transactions 50,424,185
TOTAL INCREASE (DECREASE) IN NET ASSETS 50,901,080
NET ASSETS
Beginning of period -
End of period (including distributions in excess of net investment $ 50,901,080
income
of $103,673)
OTHER INFORMATION
Shares
Sold 7,325,614
Issued in reinvestment of distributions from net investment income 4,653
Redeemed (2,521,304)
Net increase (decrease) 4,808,963
</TABLE>
FINANCIAL HIGHLIGHTS
SEPTEMBER 17, 1993
(COMMENCEMENT OF
OPERATIONS) TO
DECEMBER 31, 1993
(UNAUDITED)
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 10.00
Income from Investment Operations
Net investment income (.01)
Net realized and unrealized gain (loss) on investments .60
Total from investment operations .59
Less Distributions
From net investment income (.01)
Net asset value, end of period $ 10.58
TOTAL RETURN (dagger) 5.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 50,901
Ratio of expenses to average net assets 2.10%*
Ratio of net investment income to average net assets (.52)%*
Portfolio turnover rate 433%*
* ANNUALIZED
(dagger) TOTAL RETURN DOES NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR A
PERIOD OF LESS THAN ONE YEAR IS NOT ANNUALIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1993 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Fifty (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. 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. The fund intends to qualify as a regulated investment company
under Subchapter M of the Internal Revenue Code. By so qualifying, the fund
will not be 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 is accrued as earned. Dividend and
interest 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.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
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.
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 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.
FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures contracts and
write options. These investments involve, to varying degrees, elements of
market risk and risks in excess of the amount recognized in the Statement
of Assets and Liabilities. The face or contract amounts reflect the extent
of the involvement the fund has in the particular classes of instruments.
Risks may be caused by an imperfect correlation between movements in the
price of the instruments and the price of the underlying securities and
interest rates. Risks also may arise if there is an illiquid secondary
market for the instruments, or due to the inability of counterparties to
perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $78,907,445 and $34,141,298, respectively, of which purchases of
U.S. government and government agency obligations aggregated $248,293.
There were no sales of U.S. government and government agency obligations.
The market value of futures contracts opened and closed amounted to
$6,047,335 and $2,785,320, 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 ranging from
.30% 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 .30%.
The basic fee is subject to a performance adjustment (up to a maximum of +
or - .20%) based on the fund's investment perform-ance as compared to the
appropriate index over a specified period of time. The fund's performance
adjustment will not take effect until September 1994. For the period, the
management fee was equivalent to an annualized rate of .62% of average net
assets.
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.
SALES LOAD. For the period, Fidelity Distributors Corporation, an affiliate
of FMR and the general distributor of the fund, received sales charges of
$412,358 on sales of shares of the fund.
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 FEE. 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 $9,839 for the period.
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*
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
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Fidelity Fifty
Growth Company Fund
Low-Priced Stock Fund
Magellan(Registered trademark) Fund
New Millennium 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)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
