(2_FIDELITY_LOGOS)FIDELITY
TREND
FUND
SEMIANNUAL REPORT
JUNE 30, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 22 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 26 Notes 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. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS
OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE
FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY,AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY
DISTRIBUTORS
CORPORATION IS A BANK.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first several months of 1994 were an unsettling time for many
investors. After three years of a nearly perfect environment for stock
market investing, stock prices generally fell from February through June.
Investors disagree about whether this decline represents only a short-term
correction or signals the beginning of a longer bear market. One can
collect statistics to support either opinion, but of course, nobody knows
for sure what will happen to stock prices in the months ahead.
We do know, however, that market declines are a normal part of stock market
investing. We have historically seen corrections of 10% or more every two
years. That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful stock market
investors in every market cycle.
First, take a long-term approach when investing in stocks and stock funds.
If you can afford to leave your money invested through the market's
inevitable ups and downs, you will greatly reduce your vulnerability to any
single decline. Over time, stock prices have gone up - and have
significantly outperformed other types of investments and stayed ahead of
inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JUNE 30, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Trend -8.07% -0.15% 65.18% 281.07%
S&P 500(Registered trademark) -3.39% 1.41% 63.53% 308.81%
Average Growth Fund -5.95% 0.97% 60.86% 252.10%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or 10 years. For
example, if you had invested $1,000 in a fund that had a 5% return over the
past year, you would have $1,050. You can compare these figures to the
performance of the Standard & Poor's 500 Composite Stock Price Index - a
common proxy for the U.S. stock market. You can also compare them to the
average growth fund, which reflects the performance of 498 growth funds
tracked by Lipper Analytical Services, Inc. Both benchmarks include
reinvested dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JUNE 30, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Trend -0.15% 10.56% 14.31%
S&P 500(Registered trademark) 1.41% 10.34% 15.12%
Average Growth Fund 0.97% 9.68% 12.95%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
06/30/84 10000.01 10000.00
07/31/84 9724.01 9876.00
08/31/84 11016.86 10967.30
09/30/84 10769.91 10969.49
10/31/84 10781.53 11012.27
11/30/84 10642.08 10888.94
12/31/84 10958.92 11176.40
01/31/85 12154.47 12047.04
02/28/85 12129.92 12195.22
03/31/85 11863.03 12203.76
04/30/85 11593.07 12192.78
05/31/85 12286.38 12897.52
06/30/85 12669.85 13100.01
07/31/85 12875.39 13080.36
08/31/85 12669.85 12969.18
09/30/85 12117.65 12563.24
10/31/85 12525.66 13143.66
11/30/85 13541.09 14045.32
12/31/85 14055.47 14725.11
01/31/86 14564.36 14807.57
02/28/86 15929.84 15915.18
03/31/86 16883.22 16803.25
04/30/86 16488.49 16613.37
05/31/86 17164.22 17497.20
06/30/86 17201.02 17792.90
07/31/86 15796.03 16798.28
08/31/86 16649.06 18044.71
09/30/86 15341.09 16552.42
10/31/86 16060.31 17507.49
11/30/86 16381.44 17932.92
12/31/86 15956.93 17475.63
01/31/87 17871.93 19829.60
02/28/87 19004.74 20612.87
03/31/87 19265.75 21208.58
04/30/87 18963.96 21019.82
05/31/87 18760.04 21202.70
06/30/87 19502.29 22273.43
07/31/87 20725.77 23402.70
08/31/87 21370.13 24275.62
09/30/87 20839.96 23743.98
10/31/87 14677.69 18629.53
11/30/87 13849.80 17094.45
12/31/87 15293.40 18395.34
01/31/88 16058.07 19169.79
02/29/88 17353.63 20063.10
03/31/88 17567.93 19443.15
04/30/88 18098.82 19658.97
05/31/88 17709.17 19830.00
06/30/88 18999.86 20740.20
07/31/88 18751.46 20661.38
08/31/88 18167.00 19958.90
09/30/88 18605.35 20809.15
10/31/88 18707.63 21387.64
11/30/88 18201.10 21081.80
12/31/88 19013.88 21450.73
01/31/89 20507.35 23020.92
02/28/89 20472.03 22447.70
03/31/89 21040.69 22970.73
04/30/89 22306.11 24162.91
05/31/89 23356.35 25141.51
06/30/89 23069.45 24998.21
07/31/89 24550.04 27255.54
08/31/89 25482.45 27789.75
09/30/89 25605.40 27675.81
10/31/89 24155.56 27033.73
11/30/89 24447.58 27585.22
12/31/89 25032.23 28247.27
01/31/90 22869.79 26351.88
02/28/90 23435.39 26691.82
03/31/90 23855.71 27399.15
04/30/90 22697.00 26714.17
05/31/90 24849.69 29318.80
06/30/90 24889.45 29119.43
07/31/90 24395.30 29026.25
08/31/90 21964.29 26402.28
09/30/90 20283.03 25116.49
10/31/90 19425.36 25008.49
11/30/90 21163.42 26624.04
12/31/90 21863.24 27366.85
01/31/91 23235.05 28560.04
02/28/91 25304.20 30602.08
03/31/91 25870.07 31342.65
04/30/91 26133.00 31417.88
05/31/91 27356.20 32775.13
06/30/91 25429.95 31274.03
07/31/91 27190.44 32731.40
08/31/91 27853.48 33507.13
09/30/91 27670.58 32947.56
10/31/91 27962.08 33389.06
11/30/91 26361.64 32043.48
12/31/91 29794.48 35709.25
01/31/92 29980.58 35045.06
02/29/92 30697.07 35500.65
03/31/92 29699.82 34808.39
04/30/92 29524.55 35831.75
05/31/92 30249.82 36007.33
06/30/92 29560.81 35470.82
07/31/92 31222.89 36921.57
08/31/92 30727.29 36164.68
09/30/92 31186.63 36591.43
10/31/92 31930.03 36719.50
11/30/92 33809.69 37971.63
12/31/92 34791.68 38438.68
01/31/93 35626.17 38761.57
02/28/93 35417.74 39288.72
03/31/93 36904.21 40117.72
04/30/93 35546.44 39146.87
05/31/93 37476.92 40196.00
06/30/93 38165.45 40312.57
07/31/93 38062.49 40151.32
08/31/93 40057.31 41673.06
09/30/93 40932.46 41352.17
10/31/93 41678.91 42208.16
11/30/93 39748.44 41807.19
12/31/93 41453.72 42313.05
01/31/94 43102.61 43751.70
02/28/94 41594.05 42566.03
03/31/94 38899.70 40710.15
04/30/94 39117.21 41231.24
05/31/94 39201.41 41907.43
06/30/94 38106.83 40880.70
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Trend
Fund on June 30, 1984. As the chart shows, by June 30, 1994, the value of
your investment would have grown to $38,107 - a 281.07% increase on your
initial investment. For comparison, look at how the S&P 500 did over the
same period. With dividends reinvested, the same $10,000 investment would
have grown to $40,881 - a 308.81% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Alan Leifer, Portfolio Manager of Fidelity
Trend Fund
Q. ALAN, HOW DID THE FUND PERFORM?
A. The fund had a total return of -8.07% for the six months and -0.15% for
the 12 months ended June 30, 1994. That's disappointing, but is pretty
consistent with the fund's performance in previous bearish market cycles.
The average growth fund, as tracked by Lipper Analytical Services, returned
- -5.95% and 0.97% during the same time periods. Performance started to
improve in the second quarter with the fund down about 2% versus a drop of
about 6% in the year's first quarter. Since the fund's goal is to increase
value over the long term, I manage the fund with a long-term time horizon
and think it's important to view the current results in this context.
Cumulative returns for the five- and 10-year periods ended June 30 are just
over 65% and 281%, respectively. Those results compare quite favorably with
the average growth fund's 60.86% and 252.10% returns over the same time
periods, according to Lipper Analytical Services.
Q. WHAT CAUSED THE FUND'S PERFORMANCE TO LAG IN THE YEAR'S FIRST HALF?
A. Investments in three areas hurt performance: housing, the so-called
information superhighway and gaming. The consolidation in residential
construction has been a major portfolio theme for the past three or four
years. The fund's major holdings in this area - home builders Centex and
Lennar - are down along with other stocks in this sector due to rising
mortgage rates and the resultant slowdown in home sales. In the information
superhighway area, our investment in Tele-Communications, Inc. - the
nation's largest cable TV company - lost some value when its proposed
merger agreement with Bell Atlantic fell apart toward the end of last year.
The down market year-to-date has postponed our recovery in that position.
As for gaming, long-term prospects still look solid, but growth has been
interrupted this year. Several states that passed gaming legislation last
year are still working through various issues. This has delayed the growth
plans of some of the companies in the fund. For example, Promus and
President Riverboats were both targeting Missouri as a new growth market.
However, the state's courts continue to debate whether games of chance,
such as slot machines, are permissible under Missouri's constitution.
Q. ARE YOU ADDING TO THE FUND'S
INVESTMENTS IN THESE AREAS?
A. Yes. Many of these stocks are at temporarily depressed price levels, so
I see it as an excellent buying opportunity. If I have confidence in a
company's long-term growth prospects, I'll increase the fund's investment
when a short-term setback or a declining market reduces the stock's price.
Q. WHICH INVESTMENTS HAVE DONE WELL SO FAR THIS YEAR?
A. The fund has benefited from stocks in four areas: financial services,
the natural gas industry, commodity metals and managed health care. Federal
National Mortgage Association ("Fannie Mae"), the fund's second largest
holding, continues to perform well with double-digit earnings growth. Fleet
Financial is also doing well this year. Natural gas and related companies
including Global Marine, Apache and Amerada Hess, are advancing on strong
demand. The same has been true for commodity metals producers, with metals
prices surging and supply and inventories falling. Our investments in steel
producer Nucor and aluminum maker Reynolds Metals have strengthened on
these favorable market conditions. In the managed health care arena, U.S.
Healthcare continues to shine. This investment is an excellent example of
what we try to accomplish in the Trend Fund. I made the original investment
seven years ago at $1.50 per share. The stock is now around $35. The
company operates HMOs in the northeastern United States. It has really been
a beneficiary of medical deflation by providing corporations with
comprehensive medical services at a very competitive price. We like the
company's growth prospects going forward.
Q. ALTHOUGH FANNIE MAE AND U.S. HEALTHCARE ARE STILL AMONG THE FUND'S TOP
15 HOLDINGS, YOU'VE REDUCED THE POSITIONS SOMEWHAT SINCE THE BEGINNING OF
THE YEAR. WHY?
A. Fannie Mae and U.S. Healthcare are performing extremely well, selling at
or near their all-time highs. The growth in these two positions allows the
fund to take the gains and reinvest them in smaller, rapidly growing
companies that are selling at relatively low prices. Promus, President
Riverboats, Telephone & Data Systems and the home construction companies
all fit this profile.
Q. WHERE ELSE ARE YOU FINDING GOOD OPPORTUNITIES?
A. Historically, the correct move to make in a bearish market is to take
advantage of the areas where bargains are being created. My strategy over
the first half of the year has been to look for the kinds of companies that
have yet to participate in the economic recovery. Companies in California
or those with significant European operations would fall into this
category. Many smaller technology and communications companies are also
attractive. A lot of these companies are experiencing short-term earnings
problems and, as a result, are selling at very low prices.
Q. THERE HAS BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DO YOU USE THEM?
A. The fund has the authority to use derivatives, but I have not used them
much.
Q. WHAT IS YOUR GAME PLAN GOING
FORWARD?
A. The game plan is essentially the same one I followed in the bear markets
of 1987 and 1990: to take advantage of the bargains created in a down
market. The typical market behavior is to throw the baby out with the bath
water. That gives us the opportunity to find many good quality,
well-managed, mid-sized growth companies in a variety of market sectors.
I'll stay focused on owning the kinds of companies that have the potential
to grow their sales and earnings dramatically over the next four or five
years, regardless of what the stock market does.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing in
stocks with growth potential
START DATE: June 16, 1958
SIZE: as of June 30, 1994,
more than $1 billion
MANAGER: Alan Leifer, since
1987; manager, Fidelity
Contrafund, 1984-1987;
Fidelity Select Industrial
Materials, 1986-1988; joined
Fidelity
in 1980
(checkmark)
ALAN LEIFER ON HIS INVESTMENT
APPROACH:
"My focus is to invest in
quality growth companies at
reasonable prices. I take a
long-term approach and view
investing as becoming a
partner with each company's
management. I like mid-sized
companies run by
managements that have
proven themselves by
building the company from a
start-up to a business that is
generating a couple hundred
million dollars of annual
revenue. I want the
management to have a
workable plan to build the
company to where it will
generate a couple billion
dollars of revenue within the
next five to 10 years and
become a leader in its
industry. One of my goals is to
give the investor the potential
to double his money every
five to seven years.
Consequently, I look for
companies that have the
potential to grow their
revenues and profits at that
rate - doubling every five to
seven years."
(bullet) The fund's investments are
organized around five major
themes: - the consolidation
of the home construction
industry; the convergence of
computer and
communications technologies
(i.e., the "information
superhighway"); managed
care and health care cost
containment; the improving
competitive environment for
low-cost, U.S.-based
manufacturers; and the
natural gas industry.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JUNE 30, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Golden West Financial Corp. 4.4 3.4
Federal National Mortgage
Association 3.8 5.3
Telephone & Data Systems, Inc. 3.5 3.6
Centax Corp. 2.3 2.4
Cellular Communications, Inc. Class 2.2 1.8
P
Reynolds Metals Co, 2.1 1.7
Rogers Communications, Inc. Class 1.9 1.6
B
Tele-Communications, Inc. Class A 1.6 1.0
Lennar Corp. 1.6 1.3
TJX Companies, Inc. 1.5 1.6
TOP FIVE INDUSTRIES AS OF JUNE 30, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Finance 14.4 16.3
Utilities 11.1 11.0
Energy 10.6 10.2
Health 9.8 11.3
Media & Leisure 9.7 9.1
ASSET ALLOCATION
AS OF JUNE 30, 1994* AS OF DECEMBER 31, 1993**
Row: 1, Col: 1, Value: 2.0
Row: 1, Col: 2, Value: 1.5
Row: 1, Col: 3, Value: 57.3
Row: 1, Col: 4, Value: 40.0
Stocks 97.3%
Bonds 1.1%
Short-term
investments 1.6%
FOREIGN
INVESTMENTS 10.3%
Stocks 98.5%
Bonds 1.0%
Short-term-
investments 0.5%
FOREIGN
INVESTMENTS 12.6%
Row: 1, Col: 1, Value: 1.0
Row: 1, Col: 2, Value: 1.5
Row: 1, Col: 3, Value: 58.5
Row: 1, Col: 4, Value: 40.0
*
**
INVESTMENTS JUNE 30, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 96.9%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 0.2%
DEFENSE ELECTRONICS - 0.2%
Loral Corp. 55,900 $ 1,956
BASIC INDUSTRIES - 5.6%
CHEMICALS & PLASTICS - 0.3%
Great Lakes Chemical Corp. 76,400 4,135
IRON & STEEL - 0.5%
Nucor Corp. 80,800 5,535
METALS & MINING - 4.1%
Aluminum Co. of America 98,000 7,166
Broken Hill Proprietary Co. Ltd. (The) 601,588 7,874
Noranda, Inc. 516,200 8,816
Reynolds Metals Co. 509,900 24,475
Sunshine Mining & Refining Co. (a) 340,000 638
48,969
PACKAGING & CONTAINERS - 0.1%
Owens-Illinois, Inc. (a) 101,200 1,113
PAPER & FOREST PRODUCTS - 0.6%
Bowater, Inc. 12,300 303
Federal Paper Board Co., Inc. 300 7
Louisiana-Pacific Corp. 96,100 2,931
Repola OY 206,200 3,567
6,808
TOTAL BASIC INDUSTRIES 66,560
CONGLOMERATES - 0.9%
Brascan Ltd. Class A 275,300 3,732
PEC Israel Economic Corp. (a) 311,900 7,291
Triton Group Ltd. (a) 1,835 2
Triton Group Ltd. (warrants) (a) 2,875 1
11,026
CONSTRUCTION & REAL ESTATE - 7.3%
BUILDING MATERIALS - 0.7%
Lafarge Corp. 427,000 8,273
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
CONSTRUCTION - 5.7%
Centex Corp. 1,064,200 $ 27,403
Engle Homes, Inc. 86,700 791
Kaufman & Broad Home Corp. 442,500 5,919
Lennar Corp. 977,950 18,459
Oakwood Homes Corp. 144,300 3,391
Toll Brothers, Inc. (a) 652,500 8,319
Webb (Del E.) Corp. 226,600 3,569
67,851
REAL ESTATE - 0.2%
Hovnanian Enterprises, Inc. :
Class A (a) 155,850 1,481
Class B (a) 114,250 1,057
Koll Real Estate Group, Inc. (a) 170,000 37
Major Realty Corp. (a) 40,000 85
2,660
REAL ESTATE INVESTMENT TRUSTS - 0.7%
Beacon Properties Corp. 320,100 5,762
Crown American Realty Trust (SBI) 36,000 481
Equity Residential Property Trust (SBI) 39,500 1,175
7,418
TOTAL CONSTRUCTION & REAL ESTATE 86,202
DURABLES - 3.7%
AUTOS, TIRES, & ACCESSORIES - 1.0%
Chrysler Corp. 119,400 5,627
Dana Corp. 134,600 3,836
Discount Auto Parts, Inc. (a) 103,300 2,195
11,658
CONSUMER ELECTRONICS - 0.9%
Duracraft Corp. (a) 36,200 1,584
Whirlpool Corp. 162,900 8,552
10,136
TEXTILES & APPAREL - 1.8%
Fruit of the Loom, Inc. Class A (a) 429,100 11,210
NIKE, Inc. Class B 59,600 3,561
Reebok International Ltd. 96,200 2,874
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
TEXTILES & APPAREL - CONTINUED
Unifi, Inc. 182,200 $ 4,259
Westpoint Stevens, Inc. Class A (a) 1,800 25
21,929
TOTAL DURABLES 43,723
ENERGY - 10.0%
COAL - 0.1%
Pittston Co. Minerals Group 37,600 696
ENERGY SERVICES - 4.7%
Global Marine, Inc. (a) 3,478,700 16,089
Lone Star Technologies, Inc. (a) 122,500 888
Oceaneering International, Inc. (a) 792,200 11,091
Offshore Logistics, Inc. (a) 272,600 3,714
Production Operators Corp. 92,900 2,415
Rowan Companies, Inc. (a) 1,389,100 12,155
Schlumberger Ltd. 130,500 7,716
Varco International, Inc. (a) 269,200 1,817
55,885
OIL & GAS - 5.2%
Amerada Hess Corp. 147,600 7,269
Apache Corp. 487,700 13,473
Cabot Oil & Gas Corp. Class A 395,600 8,258
Louisiana Land & Exploration Co. 29,600 1,258
Maxus Energy Corp. (a) 449,400 2,247
Mesa, Inc. (a) 626,900 3,526
Newfield Exploration Co. (a) 14,600 331
Noble Affiliates, Inc. 163,800 4,955
North Canadian Oils Ltd. 115,300 886
Parker & Parsley Petroleum Co. 29,300 747
Renaissance Energy Ltd. (a) 629,100 13,132
Renaissance Energy Ltd. (a) (d) 54,000 1,127
Union Texas Petroleum Holdings, Inc. 244,600 4,372
61,581
TOTAL ENERGY 118,162
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - 14.2%
BANKS - 3.6%
Citicorp 202,400 $ 8,071
Deutsche Bank AG 13,300 5,731
Fleet Financial Group, Inc. 364,898 13,775
Northern Trust Corp. 193,100 7,965
State Street Boston Corp. 201,500 7,783
43,325
CREDIT & OTHER FINANCE - 1.1%
Brierley Investments Ltd. 8,598,643 6,287
MBNA Corp. 305,050 6,864
13,151
FEDERAL SPONSORED CREDIT - 3.8%
Federal National Mortgage Association 547,037 45,678
INSURANCE - 0.2%
First Central Financial Corp. (c) 376,500 2,682
SAVINGS & LOANS - 4.4%
Golden West Financial Corp. 1,343,800 51,904
SECURITIES INDUSTRY - 1.1%
Salomon, Inc. 45,500 2,173
United Asset Management Corp. 308,200 10,170
12,343
TOTAL FINANCE 169,083
HEALTH - 9.4%
DRUGS & PHARMACEUTICALS - 5.1%
ALZA Corp. Class A 592,900 13,933
Chiron Corp. (a) 188,600 10,326
Elan PLC:
ADR (a) 116,600 4,052
(1 Advanced Therapeutic Systems Common & 1 ADR
warrant) (a) 16,587 417
Pfizer, Inc. 97,000 6,123
Schering-Plough Corp. 287,400 17,603
Schering-Plough Corp. (equity unit) (a) (d) 3,800 35
Teva Pharmaceutical Industries Ltd. ADR 180,800 4,339
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS - CONTINUED
Therapeutic Discovery Corp. (1 share Class A and 1 share
ALZA Corp. warrant) (a) 44,830 $ 252
Warner-Lambert Co. 50,000 3,300
60,380
MEDICAL EQUIPMENT & SUPPLIES - 1.2%
Owens & Minor, Inc. 317,550 4,724
Pall Corp. 254,700 3,820
SciMed Life Systems, Inc. (a) 185,700 4,828
Tokos Medical Corp. (a) 130,000 553
13,925
MEDICAL FACILITIES MANAGEMENT - 3.1%
Columbia Healthcare Corp. 107,777 4,042
Community Psychiatric Centers 191,600 2,275
HEALTHSOUTH Rehabilitation Corp. (a) 116,250 3,037
Healthwise America, Inc. (a) 22,740 466
Medical Care America, Inc. (a) 80,225 2,176
National Health Laboratories Holdings, Inc. 271,600 3,293
Surgical Care Affiliates, Inc. 151,600 2,009
U.S. Healthcare, Inc. 416,550 15,412
Vivra, Inc. (a) 197,400 4,738
37,448
TOTAL HEALTH 111,753
INDUSTRIAL MACHINERY & EQUIPMENT - 5.3%
ELECTRICAL EQUIPMENT - 3.2%
BBC Brown Boveri & Cie (Bearer) 13,075 11,511
Duracell International, Inc. 119,100 4,645
Itel Corp. (a) 395,700 12,415
Lifeline Systems, Inc. (a) (c) 280,800 1,123
Sensormatic Electronics Corp. 310,700 8,932
38,626
INDUSTRIAL MACHINERY & EQUIPMENT - 1.8%
Deere & Co. 94,200 6,370
Joy Technologies, Inc. Class A (a) 115,400 1,125
Singer Company 273,100 9,559
Stewart & Stevenson Services, Inc. 102,800 4,266
21,320
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
POLLUTION CONTROL - 0.3%
Attwoods PLC:
ADR 176,244 $ 1,564
Ord. 636,000 1,110
TETRA Technologies, Inc. (a) 50,300 434
3,108
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 63,054
MEDIA & LEISURE - 9.7%
BROADCASTING - 4.1%
Home Shopping Network, Inc. (a) 49,250 579
International Cablecasting Technologies, Inc. (a) 384,200 1,345
International Cabletel, Inc. (a) 201,189 4,225
Jones Intercable, Inc. Class A 366,200 4,532
Peoples Choice TV Corp. (a) 170,100 3,700
Silver King Communications, Inc. (a) 17,750 195
Tele-Communications, Inc. Class A (a) 931,300 18,975
Television Broadcast Limited Ord. (a) 766,000 3,022
Valuevision International, Inc. (a) 410,000 1,999
Viacom, Inc. (non-vtg.) (a) 326,500 10,325
48,897
ENTERTAINMENT - 0.9%
American Classic Voyager Co. 137,000 2,192
Carnival Cruise Lines, Inc. Class A 125,800 5,567
Cedar Fair LP 85,700 2,764
10,523
LODGING & GAMING - 3.9%
Autotote Corp. Class A (a) 340,600 5,364
Caesars World, Inc. (a) 147,700 5,354
Four Seasons Hotels, Inc. 370,900 3,218
Hospitality Franchise Systems, Inc. (a) 381,600 9,349
La Quinta Motor Inns, Inc. 258,975 6,766
Mirage Resorts, Inc. (a) 276,450 5,183
President Riverboat Casinos, Inc. (a) 413,100 2,995
Promus Companies, Inc. (a) 285,600 8,461
46,690
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
PUBLISHING - 0.3%
Scholastic Corp. (a) 77,900 $ 2,941
RESTAURANTS - 0.5%
Au Bon Pain, Inc. Class A (a) 218,700 4,374
Buffets, Inc. (a) 90,400 1,661
6,035
TOTAL MEDIA & LEISURE 115,086
NONDURABLES - 1.5%
BEVERAGES - 0.5%
Guinness PLC Ord. 910,000 6,147
HOUSEHOLD PRODUCTS - 0.6%
Colgate-Palmolive Co. 141,900 7,379
TOBACCO - 0.4%
Universal Corp. 206,700 4,030
TOTAL NONDURABLES 17,556
RETAIL & WHOLESALE - 7.6%
APPAREL STORES - 3.0%
Catherines Stores Corp. (a) 120,000 1,110
Filene's Basement Corp. (a) 321,400 3,134
Limited, Inc. (The) 292,700 5,049
Petrie Stores Corp. 337,600 8,313
TJX Companies, Inc. 808,900 17,695
35,301
GENERAL MERCHANDISE STORES - 1.4%
Broadway Stores, Inc. 319,100 2,713
Mac Frugals Bargains C/O, Inc. (a) 179,100 3,112
Meyer (Fred), Inc. (a) 86,600 3,150
Wal-Mart Stores, Inc. 338,900 8,218
17,193
GROCERY STORES - 0.9%
Food Lion, Inc. Class A 465,300 2,792
Stop & Shop Companies, Inc. (a) 306,100 7,346
10,138
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISC - 2.3%
Body Shop International PLC (a) 407,100 $ 1,521
CML Group, Inc. 374,750 4,403
Circuit City Stores, Inc. 282,100 5,783
Fingerhut Companies, Inc. 65,600 1,591
International Semi-Tech Microelectronics, Inc. 96,100 347
Lowe's Companies, Inc. 193,600 6,631
Sun Television & Appliances, Inc. 261,900 2,226
Waban, Inc. (a) 287,200 4,775
27,277
TOTAL RETAIL & WHOLESALE 89,909
SERVICES - 1.8%
LEASING & RENTAL - 1.0%
Agency Rent-A-Car, Inc. 415,400 4,621
Blockbuster Entertainment Corp. 308,000 7,970
12,591
SERVICES - 0.8%
Block (H & R), Inc. 151,900 5,962
National Education Corp. (a) 230,000 1,294
Supercuts, Inc. (a) 186,000 1,999
9,255
TOTAL SERVICES 21,846
TECHNOLOGY - 5.6%
COMPUTER SERVICES & SOFTWARE - 2.3%
Cheyenne Software, Inc. (a) 181,100 1,539
ECI Telecom Ltd. 706,400 11,656
Electronics For Imaging, Inc. (a) 66,500 1,064
Intuit Inc. (a) 171,500 5,702
Microsoft Corp. (a) 136,500 7,030
SunGard Data Systems, Inc. (a) 19,900 721
27,712
COMPUTERS & OFFICE EQUIPMENT - 0.0%
XYVision, Inc. 165,750 47
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONIC INSTRUMENTS - 0.7%
Kulicke & Soffa Industries, Inc. (a) 182,300 $ 2,507
Teradyne, Inc. (a) 216,500 5,737
8,244
ELECTRONICS - 2.6%
Anthem Electronics, Inc. (a) 331,200 6,873
Intel Corp. 212,200 12,414
Solectron Corp. (a) 85,800 2,177
Texas Instruments, Inc. 115,300 9,166
30,630
TOTAL TECHNOLOGY 66,633
TRANSPORTATION - 3.1%
AIR TRANSPORTATION - 1.4%
AMR Corp. (a) 145,000 8,609
Southwest Airlines Co. 310,200 8,104
16,713
RAILROADS - 1.0%
Canadian Pacific Ltd. Ord. 374,200 5,512
Conrail, Inc. 112,600 6,165
11,677
SHIPPING - 0.7%
Bergesen Group:
Class A 34,400 795
Class B 122,500 2,849
Overseas Shipholding Group, Inc. 226,600 4,135
7,779
TOTAL TRANSPORTATION 36,169
UTILITIES - 11.0%
CELLULAR - 5.7%
American Paging, Inc. (a) 248,900 1,742
Cellular Communications, Inc. Class P (a) 521,933 25,883
Cellular Communications Puerto Rico, Inc. (a) 72,735 1,782
Commnet Cellular, Inc. (a) 267,200 4,776
Rogers Communications, Inc. Class B (a) 1,596,768 22,943
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
CELLULAR - CONTINUED
Securicor Group A 690,000 $ 8,417
United States Cellular Corp. (a) 110,400 2,746
68,289
ELECTRIC UTILITY - 1.7%
Central & South West Corp. 100,000 2,125
Entergy Corp. 331,000 8,192
NIPSCO Industries, Inc. 316,800 9,346
19,663
TELEPHONE SERVICES - 3.6%
Bell Atlantic Corp. 388 21
Telebras PN (Pfd. Reg.) (a) 55,500,000 2,089
Telephone & Data Systems, Inc. 1,109,401 41,048
43,158
TOTAL UTILITIES 131,110
TOTAL COMMON STOCKS
(Cost $992,833) 1,149,828
PREFERRED CONVERTIBLE STOCKS - 0.4%
ENERGY - 0.1%
COAL - 0.1%
Pittston Co. $3.125 (d) 22,000 902
HEALTH - 0.3%
MEDICAL EQUIPMENT & SUPPLIES - 0.3%
U.S. Surgical Corp. $2.20 (d) 177,000 4,292
TOTAL PREFERRED CONVERTIBLE STOCKS
(Cost $5,091) 5,194
CORPORATE BONDS - 1.1%
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (000S) (000S)
CONVERTIBLE BONDS - 0.4%
FINANCE - 0.2%
CREDIT & OTHER FINANCE - 0.2%
Leucadia National Corp. 5 1/4%, 2/1/03 Ba2 $ 2,230 $ 1,940
HEALTH - 0.1%
DRUGS & PHARMACEUTICALS - 0.1%
Chiron Corp. 1.90%, 11/17/00 (d) Ba3 1,150 771
RETAIL & WHOLESALE - 0.0%
RETAIL & WHOLESALE, MISC - 0.0%
CML Group, Inc. 5 1/2%, 1/15/03 (d) -- 1,000 740
UTILITIES - 0.1%
CELLULAR - 0.1%
Rogers Communications, Inc. liquid yield
option notes 0%, 5/20/13 B2 2,590 887
TOTAL CONVERTIBLE BONDS 4,338
NONCONVERTIBLE BONDS - 0.7%
ENERGY - 0.5%
ENERGY SERVICES - 0.5%
Global Marine, Inc. 12 3/4%, 12/15/99 B1 5,000 5,375
RETAIL & WHOLESALE - 0.2%
RETAIL & WHOLESALE, MISC - 0.2%
International Semi-Tech Microelectronics, Inc.
secured 0%, 8/15/03 (a) (b) Ba2 4,000 2,000
TECHNOLOGY - 0.0%
COMPUTERS & OFFICE EQUIPMENT - 0.0%
XYVision, Inc. 15%, 6/30/95 -- 773 580
TOTAL NONCONVERTIBLE BONDS 7,955
TOTAL CORPORATE BONDS
(Cost $13,186) 12,293
REPURCHASE AGREEMENTS - 1.6%
MATURITY VALUE (NOTE 1)
AMOUNT (000S)
(000S)
Investments in repurchase agreements,
(U.S. Treasury obligations), in a joint
trading account at 4.29% dated
6/30/94 due 7/1/94 $19,211 $ 19,209
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,030,319) $ 1,186,524
LEGEND
1. Non-income producing
2. Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
3. Affiliated company (see Note 5 of Notes to Financial Statements).
4. Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $7,867,000 or 0.7% of net
assets.
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 89.7%
Canada 5.3
United Kingdom 1.6
Israel 1.3
Switzerland 1.0
Others (individually less than 1%) 1.1
TOTAL 100.0%
INCOME TAX INFORMATION
At June 30, 1994, the aggregate cost of investment securities for income
tax purposes was $1,030,637,000. Net unrealized appreciation aggregated
$155,887,000, of which $255,594,000 related to appreciated investment
securities and $99,707,000 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER SHARE AMOUNTS) JUNE 30, 1994 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 1,186,524
agreements of $19,209) (cost $1,030,319) (Notes 1
and 2) - See accompanying schedule
Cash 1
Receivable for investments sold 31,473
Receivable for fund shares sold 1,528
Dividends receivable 1,192
Interest receivable 219
Other receivables 814
TOTAL ASSETS 1,221,751
LIABILITIES
Payable for investments purchased $ 9,063
Payable for fund shares redeemed 3,116
Accrued management fee 835
Other payables and accrued expenses 312
TOTAL LIABILITIES 13,326
NET ASSETS $ 1,208,425
Net Assets consist of (Note 1):
Paid in capital $ 992,868
Undistributed net investment income 2,056
Accumulated undistributed net realized gain (loss) on 57,293
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 156,208
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 22,250 shares outstanding $ 1,208,425
NET ASSET VALUE, offering price and redemption price per $54.31
share ($1,208,425 (divided by) 22,250 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED JUNE 30, 1994 (UNAUDITED)
INVESTMENT INCOME $ 7,583
Dividends (including $9 received from affiliated issuers)
(Note 5)
Interest 1,030
TOTAL INCOME 8,613
EXPENSES
Management fee (Note 4) $ 4,284
Basic fee
Performance adjustment 882
Transfer agent fees (Note 4) 1,252
Accounting fees and expenses (Note 4) 275
Non-interested trustees' compensation 4
Custodian fees and expenses 48
Registration fees 21
Audit 28
Legal 4
Interest (Note 6) 7
Miscellaneous 7
Total expenses before reductions 6,812
Expense reductions (Note 7) (40) 6,772
NET INVESTMENT INCOME 1,841
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1 AND 3)
Net realized gain (loss) on:
Investment securities 58,803
Foreign currency transactions (4) 58,799
Change in net unrealized appreciation (depreciation) on:
Investment securities (168,305)
Assets and liabilities in foreign currencies 3 (168,302)
NET GAIN (LOSS) (109,503)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ (107,662)
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED JUNE 30, DECEMBER 31,
1994 1993
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 1,841 $ 5,519
Net investment income
Net realized gain (loss) 58,799 149,580
Change in net unrealized appreciation (depreciation) (168,302) 67,567
NET INCREASE (DECREASE) IN NET ASSETS RESULTING (107,662) 222,666
FROM OPERATIONS
Distributions to shareholders - (5,588)
From net investment income
In excess of net investment income - (294)
From net realized gain - (110,237)
TOTAL DISTRIBUTIONS - (116,119)
Share transactions 297,043 934,377
Net proceeds from sales of shares
Reinvestment of distributions - 105,797
Cost of shares redeemed (374,152) (868,788)
Net increase (decrease) in net assets resulting from (77,109) 171,386
share
transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS (184,771) 277,933
NET ASSETS
Beginning of period 1,393,196 1,115,263
End of period (including undistributed net investment $ 1,208,425 $ 1,393,196
income of $2,056 and $215, respectively)
OTHER INFORMATION
Shares
Sold 5,108 16,037
Issued in reinvestment of distributions - 1,843
Redeemed (6,438) (14,878)
Net increase (decrease) (1,330) 3,002
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED DECEMBER 31,
ENDED
JUNE 30, 1994
(UNAUDITED) 1993 1992 1991 1990 1989
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 59.08 $ 54.20 $ 49.63 $ 38.25 $ 44.22 $ 37.43
beginning of period
Income from Investment
Operations
Net investment .08 .17 .58B .66 .61 .85
income
Net realized and (4.85) 10.04 7.66 12.99 (6.20) 10.79
unrealized gain
(loss)
Total from investment (4.77) 10.21 8.24 13.65 (5.59) 11.64
operations
Less Distributions
From net investment - (.26) (.44) (.48) (.24) (.63)
income
In excess of net - (.01) - - - -
investment income
From net realized - (5.06) (3.23) (1.79) (.14) (4.22)
gain
Total distributions - (5.33) (3.67) (2.27) (.38) (4.85)
Net asset value, end of $ 54.31 $ 59.08 $ 54.20 $ 49.63 $ 38.25 $ 44.22
period
TOTAL RETURNC, D (8.07)% 19.15 16.77 36.28 (12.66) 31.65
% % % % %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 1,208 $ 1,393 $ 1,115 $ 892 $ 702 $ 889
period (in millions)
Ratio of expenses to 1.03%A .92 .56 .53 .61% .58
average net assets % % % %
Ratio of expenses to 1.03%A .93 .56 .53 .61% .58
average net assets % % % %
before expense
reductions
Ratio of net investment .28%A .43 1.14 1.43 1.51% 1.76
income to average net % % % %
assets
Portfolio turnover rate 35%A 50 47 57 48% 67
% % % %
</TABLE>
A ANNUALIZED
B INVESTMENT INCOME AND EXPENSES PER SHARE HAVE BEEN CALCULATED BASED ON
AVERAGE SHARES OUTSTANDING.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN.
D TOTAL RETURNS OF LESS THAN ONE YEAR ARE NOT ANNAULIZED.
NOTES TO FINANCIAL STATEMENTS
For the period ended June 30, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Trend Fund (the fund) is registered under the Investment Company
Act of 1940, as amended (the 1940 Act), as an open-end management
investment company organized as a Massachusetts business trust and is
authorized to issue an unlimited number of shares. 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 and other assets and liabilities denominated in a
foreign currency are translated into U.S. dollars at the prevailing rates
of exchange at period end. Purchases and sales of securities, income
receipts, and expense payments are translated into U.S. dollars at the
prevailing exchange rate on the respective dates of the transactions.
Effective January 1, 1994, the fund adopted Statement of Position (SOP)
93-4: Foreign Currency Accounting and Financial Statement Presentation for
Investment Companies. In accordance with this SOP, reported net realized
gains and losses on foreign currency transactions represent net gains and
losses from sales and maturities of forward currency contracts, disposition
of foreign currencies, currency gains and losses realized between the trade
and settlement dates on securities transactions, and the difference between
the amount of net investment income accrued and the U.S. dollar amount
actually received. Further, as permitted under the SOP, the effects of
changes in foreign currency exchange rates on investments in securities are
not segregated in the Statement of Operations from the effects of changes
in market prices of those securities, but are included with the net
realized and unrealized gain or loss on investments.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, which includes
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
accretion of original issue discount, is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of such
taxes is uncertain.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign currency transactions, partnerships, non-taxable dividends, and
losses deferred due to wash sales. The fund also utilized earnings and
profits distributed to shareholders on redemption of shares as a part of
the dividends paid deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income may include temporary book and tax
basis differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these 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
2. OPERATING POLICIES -
CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
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.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $213,190,000 and $327,528,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates 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 performance as compared to the
appropriate index over a specified period of time. For the period, the
management fee was equivalent to an annualized rate of .78% of average net
assets after the performance adjustment.
The Board of Trustees previously approved a group fee rate schedule with
rates ranging from .2850% to .52%. Effective November 1, 1993, FMR
voluntarily implemented this group fee rate schedule as it resulted in the
same or lower management fee. In July 1994, the Board of Trustees approved
a new group fee rate schedule with rates ranging from .27% to .52%.
Effective August 1, 1994, FMR has voluntarily agreed to implement this new
group fee rate schedule as it results in the same or a further reduction in
the management fee.
TRANSFER AGENT FEES. 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 FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $145,000 for the period.
5. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. TRANSACTIONS WITH COMPANIES WHICH ARE OR
WERE AFFILIATES ARE AS FOLLOWS:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
First Central Financial Corp. $ - $ - $ 9 $ 2,682
Lifeline Systems, Inc. (a) - - - 1,123
TOTALS $ - $ - $ 9 $ 3,805
(a) Non-income producing
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $5,961,000 and $2,894,000,
respectively. The weighted average interest rate was 4.40%. Interest
expense includes $7,431 paid under the bank borrowing program.
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$40,000 under this arrangement.
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
1907 West State Road 434
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William Hayes, Vice President
Alan Leifer, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, 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
The Chase Manhattan Bank, N.A.
New York, NY
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
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Growth 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
