(2_FIDELITY_LOGOS)
FIDELITY FIFTY
SEMIANNUAL REPORT
DECEMBER 31, 1993
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 5 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT SUMMARY 9 A summary of the fund's
investments.
INVESTMENTS 10 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 15 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 19 Footnotes to the financial
statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider tax-free investments like municipal bonds and municipal
bond funds. Often these can provide higher after-tax yields than comparable
taxable investments. For example, if you're in the new 36% federal income
tax bracket and invest $10,000 in a taxable investment yielding 7%, you'll
pay $252 in federal taxes and receive $448 in income. That same $10,000
invested in a tax-free bond fund yielding 5.5% would allow you to keep $550
in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIOD ENDED DECEMBER 31, 1993 LIFE OF
FUND
Fidelity Fifty 5.90%
Fidelity Fifty
(including 3% sales charge) 2.72%
CUMULATIVE TOTAL RETURNS reflect the fund's actual performance over a set
period - in this case, since the fund began on September 17, 1993. For
example, if you had invested $1,000 in a fund that had a 5% return over the
past year, you would have $1,050. Once the fund has a longer record, you
may want to compare it to the Standard & Poor's 500 Composite Stock
Price Index - a common proxy for the U.S. stock market. You may also want
to look at the performance of the average capital appreciation fund, as
tracked by Lipper Analytical Services. Both benchmarks include reinvested
dividends and capital gains, if any. They will appear in the fund's next
report six months from now.
AVERAGE ANNUAL RETURNS and the growth of a hypothetical $10,000
INVESTMENT in the fund will also appear in the next report.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Low inflation, falling interest rates
and a gradually improving
economy boosted U.S. stocks
during the 12 months ended
December 31, 1993. The
Standard & Poor's 500 stock
index rose 10.08%, in line with
the market's long-term average
annual return. Some tobacco,
drug and brand-name consumer
products stocks began to pick up
by year end, but had weak
returns for the year, overall.
Those losses were offset by
impressive gains in other sectors,
including technology, although
semiconductors gave back part
of their gains in the fall. Other
market leaders were finance,
notably securities brokers;
economically-sensitive sectors
like autos and steel;
entertainment; heavy machinery;
and precious metals.
Communications stocks soared
as traditional telephone utilities,
cellular companies, and
entertainment firms scrambled to
form strategic alliances. The
NASDAQ Composite Index -
which tracks over-the-counter
stocks - rose 14.75% for the
year, but was outpaced by
the Dow Jones Industrial Average
- - an index of 30 blue-chip stocks
- - which rose 17.04%. In
mid-November, the Dow closed
above 3700 for the first time and
finished the year at 3754. Most
international markets easily
outpaced U.S. returns. The
Morgan Stanley EAFE (Europe,
Australia, Far East) index rose
32.56%, while the Morgan
Stanley Emerging Markets Index
was up 73.21% for the year.
An interview with Scott Stewart,
Portfolio Manager of Fidelity Fifty
Q. SCOTT, HOW HAS THE FUND PERFORMED?
A. The fund broke out of the gate pretty quickly, returning 5.90% from its
start date on September 17, 1993 to December 31, 1993. For the fourth
quarter - September 30 through year end - it returned 3.01%. By comparison,
the average capital appreciation fund tracked by Lipper Analytical Services
returned 1.91% for the same period. I'm encouraged by the strong start, but
I would caution against expecting the fund to maintain the same pace in
'94.
Q. WHAT SETS FIDELITY FIFTY APART FROM OTHER CAPITAL APPRECIATION FUNDS?
A. The biggest and most obvious difference is its limited number of stocks
- - generally 50 to 60 companies. In that way, it's designed to look like the
personal portfolio of an active investor. The fund also differs from many
of its peers because of my extensive use of quantitative techniques. When
choosing a stock, I first use a computer program to screen more than 7,000
names followed by Fidelity's research department, identifying the 75 to 100
that appear most attractive. At that point, I do both fundamental analysis
- - a close-up "human" examination of the company's business prospects - and
more quantitative research to help me narrow the list. I also use computer
programs to help me systematically analyze elements of a company's make-up
that might make its stock risky, critical information for a fund that
invests in so few stocks. A stock's estimated level of risk helps me
determine how heavily to invest. I don't play hunches and I usually avoid
overriding the conclusions of the risk analysis.
Q. SO WHAT DO YOU, AND THE COMPUTER, LOOK FOR IN A POTENTIAL STOCK?
A. I look for companies that seem to be undergoing a change for the better
in their business prospects. Companies that, for one reason or another, now
have a more positive outlook, usually in terms of their balance sheets or
earnings prospects. Sometimes it's a company that has done poorly and whose
stock has dropped in price, but the research suddenly shows it has improved
earnings potential. Other times I invest in companies that have been doing
well for a while, and whose earnings forecasts are now even better. I build
the portfolio using a "bottom up" approach. That simply means I focus on
the merits of individual companies, rather than on industry sectors.
Turnover in this fund will be high. If a company's business prospects
suddenly look less attractive relative to its stock price, I'll sell it and
find a replacement. With only 50 stocks, I can't afford to stick with a
laggard very long.
Q. WHAT SPECIFIC BETS HAVE PAID OFF SO FAR?
A. There were several. Amgen was the fund's second largest investment at
year end. The company has several successful drugs on the market, including
one that's increasingly used in chemotherapy to treat cancer patients.
Amgen's stock rose 20% from the end of September to the end of December.
Health care was the fund's largest sector investment on December 31, at
13.3%. As a whole, the group had an off year in '93, due mainly to
uncertainty over health-care reform. But Amgen is a good example of the
type of health-care company the fund sought out; those that now have
attractive products on the market or will soon have new products coming
out. At 11.3%, media and leisure was the fund's second biggest sector at
year end. Some media companies have improved their cost structures and may
soon see better revenues. Newspaper company Times-Mirror is an example. The
company has strong assets, and should see increasing revenues as
advertising picks up again. The stock is up roughly 20% since the fund
bought it in September.
Q. TECHNOLOGY AND RETAIL WERE AMONG THE FUND'S OTHER LARGE INDUSTRY GROUPS
OVER THE PAST FEW MONTHS. WHAT OPPORTUNITIES DID YOU FIND IN THESE SECTORS?
A. I had to be careful picking technology stocks when the fund started in
September. By that time, investors had bid up prices to levels that were
quite high; and tech stocks tend to be very volatile.
I think the fund's most interesting story in this sector has been IBM. We
hadn't heard much about IBM since its steep plunge from its glory days on
Wall Street. But in September, I felt the supply of mainframe systems like
IBM produces was decreasing while demand seemed to be increasing. The
company was cutting costs and looked like it was becoming less
bureaucratic. Most importantly, the company appeared to be underestimating
its own earnings prospects. The stock was the fund's top investment for a
while, and rose more than 25% from the end of September to the end of
December.
Q. WHAT ABOUT RETAIL?
A. Most retail stocks had a tough year but some have rebounded lately as
consumer confidence has picked up. The fund's most successful retail pick
was the Gap. Interestingly, every Friday my group here at Fidelity has
"casual day" when we're allowed to leave our dress clothes at home. Many of
us have talked about our need for more "business" casual clothes, like we
can find at stores like the Gap. I think this example is part of a larger
trend that fits in well with the Gap's story. I bought the stock when the
fund began because I felt the Gap was well managed when retail stores were
suffering. They watched their inventory levels and were poised to benefit
when sales picked up, which they have. The bet paid off. The Gap's stock
went from $29.50 per share at the end of September to $39.38 per share by
the end of December.
Q. WHAT WERE THE FUND'S LARGEST INVESTMENTS AT YEAR END?
A. The fund's biggest investment on December 31 was Stanhome, a
manufacturer of consumer products and business goods. Improving business
prospects and a stock price that showed Stanhome was undervalued compared
to its peer group made the company attractive. Stanhome's shipments of
household goods are up and so is the stock: about 10% since the fund
invested in it in early November. We've already discussed Amgen, the fund's
second largest investment. Third was Cooper Tire, which I just bought in
late December. The company should benefit as its competitors reduce their
production of lower-priced tires. COR Therapeutics was next. The company
has strong management and produces successful drugs for angina and
angioplasty. I bought the stock in October, and it was up nearly 7% by year
end. Enterra Corporation rounds out the top five. I was drawn in by rising
demand for Enterra's tool rentals and pipeline equipment, along with the
company's low stock price relative to its business prospects. The fund
bought Enterra in November, and the stock rose roughly 5% through the end
of December.
Q. ANY DISAPPOINTMENTS SO FAR?
A. The biggest was Fruit-of-the-Loom. Fall sales weren't as strong as I had
expected. I sold the stock as the price began dropping, but it would have
helped to get out earlier. As we've already discussed, poor performance
from any one stock can have a significant effect on the entire fund.
Q. WHAT'S YOUR OUTLOOK FOR THE FIRST SIX MONTHS OF 1994?
A. There's no doubt market valuations are high by historical measures. And
the market certainly could decline in the next six months if interest rates
climb or corporate earnings begin to suffer. Lately, the fund has been
leaning toward investing in smaller, more growth-oriented companies - those
with accelerating earnings. As the economy picks up steam, I think the
business prospects of these companies may tend to improve faster than those
in the Standard & Poor's 500 index. My hope is, as a result, the fund
will outperform the index.
FUND FACTS
GOAL: to increase the value of
the fund's shares by investing
in the stocks of 50-60
companies
START DATE: September 17,
1993
SIZE: as of December 31,
1993, over $50 million
MANAGER: Scott Stewart,
since September 1993;
manager, pension and
institutional accounts, since
1987
(checkmark)
SCOTT STEWART ON LIMITING RISK:
"The fate of any one stock has
a bigger effect on this fund than
it would on a fund that holds
hundreds of securities. That's
why the fund plays by certain
rules that aim to help keep risk
in check. First, I try to make
sure any given stock makes up
no more than 3% of the fund's
investments, and I'll further
restrict stocks with risky
prospects. Second, the fund
will not be overweighted in any
industry group by more than
10%. For example, at year end
the health-care sector made up
7% of the stocks in the
Standard & Poor's 500
index. That means the fund
wouldn't have more than a
17% stake in health care.
Third, I have liquidity
requirements for stocks I buy
for the fund. If a stock doesn't
trade often enough, I won't
invest in it. That helps ensure
that I can sell a stock quickly if I
have to."
(bullet) The fund had a 17.1% stake
in short-term investments on
December 31. That may
appear high, but was
somewhat offset by the fund's
6% investment in S&P
500 futures contracts. These
contracts allow the fund to
participate in broad market
moves while awaiting suitable
opportunities to invest in
individual companies. This also
limits transaction costs incurred
from managing the money
coming in and out of the fund
each day.
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.
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
1. For quotes on funds you own.
2. For an individual fund quote.
3. For the ten most frequently
requested Fidelity fund quotes.
4. For quotes on Fidelity Select
Portfolios(Registered trademark).
5. To change your Personal
Identification Number (PIN).
6. To speak with a Fidelity
representative.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
1. For balances on funds you own.
2. For your most recent fund activity
(purchases, redemptions, and
dividends).
3. To change your Personal
Identification Number (PIN).
4. To speak with a Fidelity
representative.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
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
