(2_FIDELITY_LOGOS)FIDELITY
TREND
FUND
ANNUAL REPORT
DECEMBER 31, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 21 Statements of assets and liabilities,
operations, and changes in net
assets,
as well as financial highlights.
NOTES 25 Notes to the financial statements.
REPORT OF INDEPENDENT 29 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 30
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR DISTRIBUTION TO
PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN
EFFECTIVE
PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL
RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS,
INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although the markets were fairly positive in 1995, no one can predict what
lies ahead for investors. The previous year, stocks posted below-average
returns and bonds had one of the worst years in history. This downturn
followed a period in which the investing environment was generally very
positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in a fund's share price, plus reinvestment of any
dividends (or income) and capital gains (the profits the fund earns when it
sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Trend 22.11% 116.03% 236.03%
S&P 500(registered trademark) 37.58% 115.52% 300.54%
Average Growth Fund 30.79% 113.44% 251.83%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one, five, or 10 years. For example, if
you invested $1,000 in a fund that had a 5% return over the past year, the
value of your investment would be $1,050. You can compare the fund's
returns to the performance of the Standard & Poor's Composite Index of 500
Stocks - a common proxy for the U.S. stock market. To measure how the
fund's performance stacked up against its peers, you can compare it to the
average growth fund, which reflects the performance of 572 growth funds
with similar objectives tracked by Lipper Analytical Services over the past
12 months. Both benchmarks include reinvested dividends and capital gains,
if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Trend 22.11% 16.65% 12.89%
S&P 500(registered trademark) 37.58% 16.60% 14.89%
Average Growth Fund 30.79% 16.01% 12.94%
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
Trend (005) Standard & Poor's 50
12/31/85 10000.00 10000.00
01/31/86 10362.06 10056.00
02/28/86 11333.56 10808.19
03/31/86 12011.86 11411.29
04/30/86 11731.02 11282.34
05/31/86 12211.78 11882.56
06/30/86 12237.96 12083.37
07/31/86 11238.36 11407.91
08/31/86 11845.26 12254.38
09/30/86 10914.68 11240.94
10/31/86 11426.38 11889.55
11/30/86 11654.86 12178.46
12/31/86 11352.83 11867.91
01/31/87 12715.28 13466.52
02/28/87 13521.25 13998.45
03/31/87 13706.94 14403.00
04/30/87 13492.23 14274.81
05/31/87 13347.15 14399.01
06/30/87 13875.23 15126.15
07/31/87 14745.70 15893.05
08/31/87 15204.15 16485.86
09/30/87 14826.94 16124.82
10/31/87 10442.70 12651.53
11/30/87 9853.68 11609.05
12/31/87 10880.75 12492.50
01/31/88 11424.79 13018.43
02/29/88 12346.54 13625.09
03/31/88 12499.00 13204.07
04/30/88 12876.71 13350.64
05/31/88 12599.50 13466.79
06/30/88 13517.78 14084.92
07/31/88 13341.05 14031.39
08/31/88 12925.23 13554.33
09/30/88 13237.09 14131.74
10/31/88 13309.86 14524.60
11/30/88 12949.48 14316.90
12/31/88 13527.76 14567.45
01/31/89 14590.31 15633.78
02/28/89 14565.17 15244.50
03/31/89 14969.76 15599.70
04/30/89 15870.06 16409.32
05/31/89 16617.27 17073.90
06/30/89 16413.15 16976.58
07/31/89 17466.54 18509.57
08/31/89 18129.92 18872.35
09/30/89 18217.40 18794.98
10/31/89 17185.88 18358.93
11/30/89 17393.64 18733.46
12/31/89 17809.60 19183.06
01/31/90 16271.10 17895.87
02/28/90 16673.49 18126.73
03/31/90 16972.53 18607.09
04/30/90 16148.15 18141.91
05/31/90 17679.72 19910.75
06/30/90 17708.01 19775.36
07/31/90 17356.43 19712.07
08/31/90 15626.85 17930.10
09/30/90 14430.69 17056.91
10/31/90 13820.49 16983.56
11/30/90 15057.06 18080.70
12/31/90 15554.96 18585.15
01/31/91 16530.95 19395.46
02/28/91 18003.08 20782.24
03/31/91 18405.68 21285.17
04/30/91 18592.75 21336.26
05/31/91 19463.01 22257.98
06/30/91 18092.55 21238.57
07/31/91 19345.08 22228.28
08/31/91 19816.81 22755.09
09/30/91 19686.68 22375.08
10/31/91 19894.08 22674.91
11/30/91 18755.41 21761.11
12/31/91 21197.76 24250.58
01/31/92 21330.17 23799.52
02/29/92 21839.94 24108.91
03/31/92 21130.43 23638.79
04/30/92 21005.73 24333.77
05/31/92 21521.74 24453.01
06/30/92 21031.53 24088.66
07/31/92 22214.04 25073.88
08/31/92 21861.44 24559.87
09/30/92 22188.24 24849.67
10/31/92 22717.15 24936.65
11/30/92 24054.46 25786.99
12/31/92 24753.12 26104.17
01/31/93 25346.83 26323.44
02/28/93 25198.53 26681.44
03/31/93 26256.10 27244.42
04/30/93 25290.10 26585.11
05/31/93 26663.56 27297.59
06/30/93 27153.43 27376.75
07/31/93 27080.18 27267.24
08/31/93 28499.43 28300.67
09/30/93 29122.07 28082.76
10/31/93 29653.14 28664.07
11/30/93 28279.67 28391.76
12/31/93 29492.92 28735.30
01/31/94 30666.05 29712.30
02/28/94 29592.76 28907.10
03/31/94 27675.82 27646.75
04/30/94 27830.58 28000.63
05/31/94 27890.48 28459.84
06/30/94 27111.72 27762.57
07/31/94 27840.56 28673.18
08/31/94 29447.99 29848.78
09/30/94 28814.01 29117.49
10/31/94 28943.80 29772.63
11/30/94 27351.34 28688.31
12/31/94 27517.82 29113.76
01/31/95 27285.77 29868.68
02/28/95 28181.62 31032.66
03/31/95 28613.36 31948.44
04/30/95 29023.51 32889.32
05/31/95 29654.92 34203.90
06/30/95 30588.55 34998.46
07/31/95 32078.04 36159.01
08/31/95 32946.91 36249.77
09/30/95 33961.50 37779.51
10/31/95 33103.42 37644.64
11/30/95 34144.98 39297.24
12/29/95 33603.31 40054.10
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Trend
Fund on December 31, 1985. As the chart shows, by December 31, 1995, the
value of your investment would have grown to $33,603 - a 236.03% 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 $40,054 - a 300.54% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Strong corporate earnings and a
favorable interest rate
environment helped the U.S.
stock market post robust returns
for the 12 months ended
December 31, 1995. The Standard
& Poor's Composite Index of 500
Stocks finished the 12-month
period with a total return of
37.58% (including reinvested
dividends ) - well above its
historical annual average of
roughly 12%. With inflation posing
little threat, interest rates fell
during the first half of 1995. The
Federal Reserve Board cut the fed
funds rate - the rate banks charge
each other for overnight loans -
twice, in July and December.
Large-capitalization stocks led the
rally, with the weak dollar helping
to bolster overseas business.
Technology companies posted the
strongest earnings growth and
stock price gain, although they
faltered somewhat in the fourth
quarter. Lower interest rates and
continued merger and acquisition
activity helped financial stocks
perform well. In November, the
Dow Jones Industrial Average
closed above 5000 for the first time.
Returns from foreign markets
suffered as investors brought
capital back to the U.S. The
Morgan Stanley Emerging
Markets Free Index was down
5.21% for the 12 months ended
December 31. The Morgan
Stanley EAFE (Europe, Australia,
Far East) Index was up 11.21% for
the year. European markets fared
well through 1995, while the
Japanese market recently has
shown signs of recovery.
An interview with Fergus Shiel, Portfolio Manager of Fidelity Trend Fund
Q. YOU BEGAN MANAGING THE FUND THIS PAST MAY, BUT HOW DID THE FUND PERFORM
DURING THE 12-MONTH PERIOD, FERGUS?
A. For the 12 months ended December 31, 1995, the fund returned 22.11%
while the average growth fund returned 30.79% for the same time period,
according to Lipper Analytical Services. The fund lagged the market all
year. In the first six months, the fund was underweighted in technology
stocks. Over the past six months, the fund was underweighted in consumer
nondurables.
Q. THE FUND MORE ACTIVELY SHIFTED ITS HOLDINGS IN INDIVIDUAL STOCKS AND
MARKET SECTORS DURING 1995 THAN IN PREVIOUS YEARS. WHY WAS THAT?
A. When new managers are named to a fund, it is common for them to
reposition the fund with the stocks and market sectors they have confidence
in and believe can best meet the fund's objectives. When I took over the
Trend Fund this past May, I moved aggressively to position it to capitalize
on the economic, financial and market trends I believed would influence the
performance of equities. As an example, only two of the fund's five largest
sector holdings at the end of the period - health care and utilities - were
among its five largest holdings on April 30.
Q. SINCE THE END OF JUNE, THE FUND'S TECHNOLOGY HOLDING WENT FROM 20.6% OF
INVESTMENTS TO 12.8% OF INVESTMENTS. WHAT DID YOU SELL AND WHAT DID YOU
KEEP?
A. The major area where I reduced holdings was in wireless equipment makers
within telecommunications. Subscriber growth has slowed in North America,
creating an oversupply of analog equipment, even though the market for
digital equipment remains strong. In particular, the performance of Nokia
and Motorola suffered, and Ericsson's stock price came down in sympathy. At
the end of the period, I no longer had large positions in either Nokia or
Ericsson. On the other hand, Digital Equipment Corp. - DEC - has been an
excellent example of a successful technology turnaround story. DEC has made
enormous strides in cutting its costs of doing business, with major
improvements in its profitability model. During the period, the stock was
selling at 50% of sales - which is cheap for an industrial company. It was
also generating a lot of cash and had a very clean balance sheet.
Q. AT THE SAME TIME, YOU'VE INCREASED SIGNIFICANTLY THE FUND'S INVESTMENTS
IN AEROSPACE & DEFENSE (9.9%), HEALTH (9.6%) AND NONDURABLES (8.5%) . . .
A. Yes. My increase in aerospace & defense investments such as General
Dynamics, McDonnell Douglas and Loral was a reflection of my pursuit of
relative value. This is a consolidating industry with solid free cash flow
and stocks selling at cheap valuations. Profit margins have grown due to
consolidation and because the government is purchasing upgraded equipment,
which is far less expensive for the companies than new program development.
In addition, the commercial aircraft cycle appears to have turned, with
airlines starting to order new airplanes and parts again.
Q. WHAT'S BEEN THE APPEAL OF HEALTH AND NONDURABLES?
A. I've increased investments in these two sectors in order to position the
fund more defensively. Most of the fund's investments in these sectors
comprise traditional big-name growth stocks that tend to have steady
earnings growth regardless of the economic backdrop. Included in this group
would be the fund's investments in Philip Morris, Johnson & Johnson,
Coca-Cola, PepsiCo, Gillette and Procter & Gamble. Even though these stocks
tend to sell at more expensive valuations than the market average, economic
statistics have shown that the economy is slowing, and I've been willing to
pay more for these companies' anticipated earnings growth.
Q. DOES THAT MEAN YOU THINK THERE IS A ROCKY ROAD AHEAD FOR THE STOCK
MARKET IN 1996?
A. That's hard to say. I believe the market will be very unforgiving of
companies that don't meet their earnings estimates. The economy has slowed
and there aren't many signs that it will re-accelerate. That may not be bad
for the market as a whole because a slower economy should keep interest
rates low, a backdrop that is favorable for equities. An important factor
will be investor sentiment. If that situation changes due to abnormally
high valuations or downturns in corporate profitability, there could be a
marked sell-off. For the time being, though, valuations are not at those
kinds of extreme levels, and the market could surprise by rising
moderately. The real key, at this point, will be to stay defensive and
avoid the pitfalls of companies that suffer earnings disappointments.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL: to increase the value
of the fund's shares by
investing mainly in equity
securities of companies likely
to benefit from economic,
financial or market trends
START DATE: June 16, 1958
SIZE: as of December
31, 1995, more than $1.2
billion
MANAGER: Fergus Shiel,
since May 1995; manager,
Fidelity Dividend Growth
Fund, April 1994 - May
1995; Fidelity Select
Telecommunications
Portfolio, 1992 - April 1994;
Select Broadcast and Media
Portfolio, 1990 - 1991 and
1993; Select Consumer
Products Portfolio, 1991 -
1992; joined Fidelity in 1989
(checkmark)
FERGUS SHIEL ON STOCK PICKING:
"The types of companies I'm
looking for now are those with
some kind of internal story that
will help them meet or beat
earnings expectations. I'm
focusing less on companies
that are dependent on
economic events. That's where
I feel the greatest danger lies in
the near future, because the
economy has slowed and it's
uncertain where it will go from
here. At the end of the period,
the fund had more invested in
cash and short-term
investments than my targeted
amount of around 5% of
investments. I don't try to time
the market. At the same time,
I don't like to chase stocks
just to stay fully invested. I
think the market may be up this
year, but a lot of individual
stocks may drop significantly
due to earnings
disappointments. My high
cash position is a reflection of
my desire to pick only those
companies that appear to
have the kind of internal
momentum necessary to
sustain earnings growth and
offer the opportunity for share
price gains."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF DECEMBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Philip Morris Companies, Inc. 3.6 3.1
Digital Equipment Corp. 2.9 0.0
Glenayre Technologies, Inc. 2.0 0.9
General Dynamics Corp. 1.8 0.7
McDonnell Douglas Corp. 1.7 0.9
ECI Telecom Ltd. 1.5 0.9
Computer Sciences Corp. 1.5 1.0
Harsco Corp. 1.5 0.5
UAL Corp. 1.5 0.0
Ceridian Corp. 1.4 1.2
TOP FIVE MARKET SECTORS AS OF DECEMBER 31, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
Technology 12.8 20.6
Aerospace & Defense 9.9 5.3
Health 9.6 7.6
Nondurables 8.5 5.5
Utilities 7.4 12.0
ASSET ALLOCATION
AS OF DECEMBER 31, 1995* AS OF JUNE 30, 1995**
Row: 1, Col: 1, Value: 14.0
Row: 1, Col: 2, Value: 2.1
Row: 1, Col: 3, Value: 50.9
Row: 1, Col: 4, Value: 33.0
Row: 1, Col: 1, Value: 5.7
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 50.3
Row: 1, Col: 4, Value: 40.0
Stocks 85.9%
Bonds 0.1%
Short-term
investments 14.0%
FOREIGN
INVESTMENTS 6.2%
Stocks 94.3%
Bonds 0.0%
Short-term
investments 5.7%
FOREIGN
INVESTMENTS 12.3%
*
**
INVESTMENTS DECEMBER 31, 1995
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 85.9%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 9.9%
AEROSPACE & DEFENSE - 6.9%
Boeing Co. 50,000 $ 3,919
Harsco Corp. 334,100 19,420
McDonnell Douglas Corp. 250,000 23,000
Northrop Grumman Corp. 140,000 8,960
Precision Castparts Corp. 99,900 3,971
Rockwell International Corp. 270,000 14,276
Rohr Industries, Inc. (a) 265,100 3,811
Sundstrand Corp. 190,000 13,371
90,728
DEFENSE ELECTRONICS - 1.2%
Litton Industries, Inc. 20,000 890
Loral Corp. 440,000 15,565
16,455
SHIP BUILDING & REPAIR - 1.8%
General Dynamics Corp. 400,000 23,650
TOTAL AEROSPACE & DEFENSE 130,833
BASIC INDUSTRIES - 3.9%
CHEMICALS & PLASTICS - 2.1%
Cytec Industries, Inc. (a) 36,800 2,295
du Pont (E.I.) de Nemours & Co. 60,000 4,193
Hanna (M.A.) Co. 86,400 2,419
Hercules, Inc. 75,000 4,228
Minerals Technologies, Inc. 20,000 730
Monsanto Co. 27,600 3,381
Sealed Air Corp. (a) 155,200 4,365
Union Carbide Corp. 107,300 4,024
Valspar Corp. 25,400 1,133
Witco Corp. 40,000 1,170
27,938
IRON & STEEL - 0.6%
Northwest Pipe Co. (a)(d) 170,000 1,867
Nucor Corp. 100,000 5,713
7,580
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
METALS & MINING - 1.2%
Aluminum Co. of America 300,000 $ 15,863
TOTAL BASIC INDUSTRIES 51,381
CONGLOMERATES - 1.2%
Allied-Signal, Inc. 61,600 2,926
GenCorp, Inc. 30,000 368
Mark IV Industries, Inc. 233,200 4,606
Tyco International Ltd. 235,100 8,375
16,275
CONSTRUCTION & REAL ESTATE - 0.2%
BUILDING MATERIALS - 0.1%
Lafarge Corp. 50,938 955
REAL ESTATE INVESTMENT TRUSTS - 0.1%
Innkeepers USA Trust 137,000 1,250
TOTAL CONSTRUCTION & REAL ESTATE 2,205
DURABLES - 1.0%
AUTOS, TIRES, & ACCESSORIES - 0.4%
Gentex Corp. (a) 121,100 2,664
Volvo Aktiebolaget ADR Class B 120,000 2,471
5,135
TEXTILES & APPAREL - 0.6%
Adidas AG (a)(c) 5,000 264
Adidas AG (a) 1,000 53
Burlington Industries, Inc. (a) 41,000 538
Haggar Corp. 60,900 1,096
Kellwood Co. 36,100 736
Nine West Group, Inc. (a) 150,000 5,625
Warnaco Group, Inc. Class A 13,200 330
8,642
TOTAL DURABLES 13,777
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - 0.4%
ENERGY SERVICES - 0.1%
Transocean Drilling AS (a) 97,100 $ 1,676
OIL & GAS - 0.3%
Renaissance Energy Ltd. (a)(c) 54,000 1,346
Union Pacific Resources Group, Inc. 90,000 2,284
3,630
TOTAL ENERGY 5,306
FINANCE - 5.7%
BANKS - 0.9%
Allied Irish Bank 500,000 2,729
Bank of Ireland U.S. Holdings, Inc. 800,000 5,831
Bank of New York Co., Inc. 60,000 2,925
TR Financial Corp. 20,000 510
11,995
CREDIT & OTHER FINANCE - 1.6%
American Express Co. 230,000 9,516
Equitable Companies, Inc. 184,700 4,433
Household International, Inc. 70,000 4,139
Irish Permanent PLC 135,000 833
Woodchester Investments PLC Unit 750,000 1,919
20,840
FEDERAL SPONSORED CREDIT - 0.9%
Student Loan Marketing Association 190,000 12,517
INSURANCE - 1.3%
Aetna Life & Casualty Co. 100,000 6,925
Allmerica Financial Corp. 23,000 621
American International Group, Inc. 57,500 5,318
General Re Corp. 15,000 2,325
GCR Holdings Ltd. (Cayman Islands) 3,000 68
Mercury General Corp. 10,000 477
PXRE Corp. 5,000 133
Prudential Reinsurance Holdings, Inc. 80,000 1,870
17,737
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SAVINGS & LOANS - 1.0%
Charter One Financial Corp. 17,500 $ 536
Golden West Financial Corp. 190,000 10,497
Leader Financial Corp. 20,000 747
Standard Federal Bancorporation, Inc. 20,000 788
12,568
TOTAL FINANCE 75,657
HEALTH - 9.6%
DRUGS & PHARMACEUTICALS - 3.2%
American Home Products Corp. 70,000 6,790
Astra AB Class A Free shares 180,000 7,167
Merck & Co., Inc. 50,000 3,288
Pharmacia & Upjohn, Inc. 455,400 17,647
Schering-Plough Corp. 120,000 6,570
Thermotrex Corp. (a) 16,300 815
42,277
MEDICAL EQUIPMENT & SUPPLIES - 5.4%
Beckman Instruments, Inc. 69,500 2,459
Becton, Dickinson & Co. 100,000 7,500
Guidant Corp. 60,000 2,535
Hillenbrand Industries, Inc. 34,800 1,178
Johnson & Johnson 110,000 9,418
McKesson Corp. 110,000 5,569
Medtronic, Inc. 270,000 15,086
Millipore Corp. 190,000 7,814
Pall Corp. 232,800 6,257
St. Jude Medical, Inc. (a) 270,000 11,610
Thermo Cardiosystems, Inc. (a) 16,000 1,236
Thermedics, Inc. (a) 30,000 833
71,495
MEDICAL FACILITIES MANAGEMENT - 1.0%
Humana, Inc. (a) 140,000 3,832
Oxford Health Plans, Inc. (a) 35,300 2,608
Tenet Healthcare Corp. (a) 306,000 6,350
Total Renal Care Holdings, Inc. (a) 25,700 758
13,548
TOTAL HEALTH 127,320
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HOLDING COMPANIES - 0.5%
Norfolk Southern Corp. 82,100 $ 6,517
INDUSTRIAL MACHINERY & EQUIPMENT - 6.3%
ELECTRICAL EQUIPMENT - 5.2%
Amphenol Corp. Class A (a) 751,900 18,234
Emerson Electric Co. 60,100 4,913
General Electric Co. 150,000 10,800
Glenayre Technologies, Inc. (a) 645,000 26,767
Honeywell, Inc. 90,000 4,376
Lifeline Systems, Inc. (a) 200,000 2,425
Scientific-Atlanta, Inc. 113,000 1,695
69,210
INDUSTRIAL MACHINERY & EQUIPMENT - 1.0%
Dover Corp. 160,000 5,900
Duriron Co., Inc. 13,900 325
IDEX Corp. 300 12
Ingersoll-Rand Co. 157,600 5,536
MSC Industrial Direct, Inc. (a) 41,800 1,149
Regal-Beloit Corp. 37,100 807
Strategic Distribution, Inc. 10,000 79
13,808
POLLUTION CONTROL - 0.1%
AquaSciences International Inc. (a) 250,000 -
Thermo Instrument Systems, Inc. (a) 27,500 743
743
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 83,761
MEDIA & LEISURE - 4.5%
BROADCASTING - 0.9%
People's Choice TV Corp. (a) 85,000 1,615
Viacom, Inc. (a):
Class A 100,000 4,588
Class B (non-vtg.) 100,000 4,738
10,941
LEISURE DURABLES & TOYS - 0.4%
Brunswick Corp. 200,000 4,799
Galoob (Lewis) Toys, Inc. (a) 45,000 529
Polaris Industries, Inc. 15,000 441
5,769
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - 2.1%
Aztar Corp. (a) 17,600 $ 141
Bally Entertainment Corp. 20,000 280
Circus Circus Enterprises, Inc. (a) 350,000 9,756
Griffin Gaming & Entertainment, Inc.(a) 12,300 135
HFS, Inc. (a) 30,000 2,453
Hilton Hotels Corp. 115,000 7,073
Mirage Resorts, Inc. (a) 230,000 7,934
Trump Hotels & Casino Resorts, Inc. (a) 10,000 215
27,987
PUBLISHING - 0.6%
Gannett Co., Inc. 100,000 6,138
Harcourt General, Inc. 48,700 2,039
8,177
RESTAURANTS - 0.5%
Apple South, Inc. 260,000 5,590
Starbucks Corp. (a) 40,000 840
6,430
TOTAL MEDIA & LEISURE 59,304
NONDURABLES - 8.5%
BEVERAGES - 1.5%
Coca-Cola Company (The) 150,000 11,137
PepsiCo, Inc. 140,000 7,823
18,960
FOODS - 0.5%
Universal Foods Corp. 167,500 6,721
HOUSEHOLD PRODUCTS - 2.1%
Colgate-Palmolive Co. 60,000 4,215
Gillette Co. 110,000 5,734
Premark International, Inc. 100,000 5,063
Procter & Gamble Co. 90,000 7,470
Unilever NV ADR 40,000 5,630
28,112
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
TOBACCO - 4.4%
Philip Morris Companies, Inc. 522,800 $ 47,313
Schweitzer-Mauduit International,
Inc.(a) 75,300 1,741
UST, Inc. 270,000 9,011
58,065
TOTAL NONDURABLES 111,858
PRECIOUS METALS - 1.2%
Newmont Gold Co. 107,500 4,703
Newmont Mining Corp. 120,000 5,430
Santa Fe Pacific Gold Corp. 500,000 6,063
16,196
RETAIL & WHOLESALE - 3.1%
APPAREL STORES - 0.1%
Gymboree Corp. (a) 92,800 1,914
DRUG STORES - 0.1%
Walgreen Co. 40,800 1,219
GROCERY STORES - 0.9%
Kroger Co. (The) (a) 220,000 8,250
Richfood Holdings, Inc. Class A 42,900 1,148
Safeway, Inc. 50,000 2,575
11,973
RETAIL & WHOLESALE, MISCELLANEOUS - 2.0%
Creative Computers, Inc. (a) 69,800 1,274
Gadzooks, Inc. (a) 6,700 168
Officemax, Inc. (a) 540,000 12,083
PETsMART, Inc. (a) 40,000 1,240
Staples, Inc. (a) 450,050 10,970
25,735
TOTAL RETAIL & WHOLESALE 40,841
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - 3.2%
ADVERTISING - 1.1%
ADVO-Systems, Inc. 105,800 $ 2,751
Interpublic Group of Companies, Inc. 125,500 5,443
Omnicom Group, Inc. 163,000 6,072
14,266
LEASING & RENTAL - 0.0%
Hollywood Entertainment Corp. (a) 19,600 164
PRINTING - 0.9%
Deluxe Corp. 410,000 11,890
Paxar Corp. (a) 7,300 97
11,987
SERVICES - 1.2%
EmCare Holdings (a) 7,400 178
HCIA, Inc. (a) 6,300 295
Regis Corp. 69,100 1,658
Zebra Technologies Corp. Class A 400,000 13,600
15,731
TOTAL SERVICES 42,148
TECHNOLOGY - 12.7%
COMMUNICATIONS EQUIPMENT - 0.9%
ADC Telecommunications, Inc. (a) 165,100 6,026
DSC Communications Corp. (a) 68,100 2,511
Ericsson (L.M.) Telephone Co. Class B
ADR 135,700 2,646
11,183
COMPUTER SERVICES & SOFTWARE - 6.6%
Automatic Data Processing, Inc. 100,000 7,425
CUC International, Inc. (a) 190,000 6,484
Ceridian Corp. (a) 460,000 18,975
Computer Sciences Corp. (a) 280,000 19,670
ECI Telecom Ltd. 880,000 20,075
HBO & Co. 90,000 6,896
MetaTools, Inc. (a) 800 20
PeopleSoft, Inc. (a) 40,700 1,750
Policy Management Systems Corp. (a) 52,700 2,510
Saville System PLC sponsored ADR (a) 245,300 3,496
87,301
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - 3.4%
Bell & Howell Holdings Co. (a) 36,900 $ 1,032
Digital Equipment Corp. (a) 600,000 38,475
Pitney Bowes, Inc. 22,500 1,058
Telxon Corp. 188,000 4,254
Xyvision, Inc. (b) 77,350 48
Xyvision, Inc. 165,750 104
44,971
ELECTRONIC INSTRUMENTS - 0.3%
Cognex Corp. (a) 100,000 3,475
ELECTRONICS - 0.9%
AMP, Inc. 120,000 4,605
Maxim Integrated Products, Inc. (a) 200,000 7,700
Unitrode Corp. (warrants) (a) 4,704 18
12,323
PHOTOGRAPHIC EQUIPMENT - 0.6%
Eastman Kodak Co. 50,000 3,350
Polaroid Corp. 97,300 4,610
7,960
TOTAL TECHNOLOGY 167,213
TRANSPORTATION - 6.6%
AIR TRANSPORTATION - 4.2%
Atlantic Southeast Airlines, Inc. 450,000 9,675
Delta Air Lines, Inc. 160,000 11,820
Northwest Airlines Corp. Class A (a) 100,000 5,100
Trans World Airlines, Inc. (a) 900,000 9,337
UAL Corp. (a) 108,700 19,403
55,335
RAILROADS - 1.9%
Bombardier, Inc. Class B 1,200,000 15,832
Burlington Northern Santa Fe Corp. 80,000 6,240
Union Pacific Corp. 50,000 3,300
25,372
TRUCKING & FREIGHT - 0.5%
Airborne Freight Corp. 254,500 6,776
TOTAL TRANSPORTATION 87,483
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - 7.4%
CELLULAR - 2.3%
Century Telephone Enterprises, Inc. 257,900 $ 8,188
Mobile Telecommunications Technologies,
Inc. (a) 240,000 5,130
Vodafone Group PLC sponsored ADR 471,000 16,602
29,920
TELEPHONE SERVICES - 5.1%
Ameritech Corp. 250,000 14,750
GTE Corp. 140,000 6,160
NYNEX Corp. 900 49
Pacific Telesis Group 500,000 16,813
SBC Communications, Inc. 238,200 13,696
U.S. West, Inc. 100,000 3,574
WorldCom, Inc. 370,000 13,042
68,084
TOTAL UTILITIES 98,004
TOTAL COMMON STOCKS
(Cost $1,005,236) 1,136,079
CONVERTIBLE PREFERRED STOCKS - 0.0%
TECHNOLOGY - 0.0%
COMPUTERS & OFFICE EQUIPMENT - 0.0%
Xyvision, Inc., Series B cumulative (b)
(Cost $52) 32,616 52
NONCONVERTIBLE BONDS - 0.1%
MOODY'S RATINGS PRINCIPAL
(UNAUDITED) AMOUNT (000S)
TECHNOLOGY - 0.1%
COMPUTERS & OFFICE EQUIPMENT - 0.1%
Xyvision, Inc. 4%, 1/1/98 (b)
(Cost $538) - $ 774 564
REPURCHASE AGREEMENTS - 14.0%
MATURITY VALUE (NOTE 1)
AMOUNT (000S)
Investments in repurchase agreements
(U.S. Treasury obligations) in a joint
trading account at 5.88% dated
12/29/95 due 1/2/96 $ 185,761 $ 185,640
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,191,466) $ 1,322,335
LEGEND
1. Non-income producing
2. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION SECURITY DATE COST (000S)
Xyvision, Inc. 4%, 1/1/98 7/14/95 $ 538
Xyvision, Inc. 7/14/95 48
Xyvision, Inc.,
Series B cumulative 7/14/95 52
3. 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 $1,610,000 or 0.1% of net
assets.
4. Affiliated company (see Note 6 of Notes to Financial Statements).
INCOME TAX INFORMATION
At December 31, 1995, the aggregate cost of investment securities for
income tax purposes was $1,193,387,000. Net unrealized appreciation
aggregated $128,948,000, of which $144,932,000 related to appreciated
investment securities and $15,984,000 related to depreciated investment
securities.
The fund hereby designates $51,100,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) DECEMBER 31, 1995
ASSETS
Investment in securities, at value (including repurchase $ 1,322,335
agreements of $185,640) (cost $1,191,466) -
See accompanying schedule
Receivable for investments sold 6,102
Receivable for fund shares sold 2,010
Dividends receivable 1,607
Interest receivable 8
Other receivables 223
TOTAL ASSETS 1,332,285
LIABILITIES
Payable to custodian bank $ 153
Payable for investments purchased 25,017
Payable for fund shares redeemed 18,286
Distributions payable 19,571
Accrued management fee 464
Other payables and accrued expenses 310
TOTAL LIABILITIES 63,801
NET ASSETS $ 1,268,484
Net Assets consist of:
Paid in capital $ 1,080,682
Distributions in excess of net investment income (130)
Accumulated undistributed net realized gain (loss) on 57,063
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 130,869
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 24,172 shares outstanding $ 1,268,484
NET ASSET VALUE, offering price and redemption price per $52.48
share ($1,268,484 (divided by) 24,172 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED DECEMBER 31, 1995
INVESTMENT INCOME $ 14,795
Dividends (including $11 received from affiliated issuers)
Interest 5,629
TOTAL INCOME 20,424
EXPENSES
Management fee $ 7,662
Basic fee
Performance adjustment (267)
Transfer agent fees 2,375
Accounting fees and expenses 526
Non-interested trustees' compensation 25
Custodian fees and expenses 82
Registration fees 84
Audit 43
Legal 8
Miscellaneous 9
Total expenses before reductions 10,547
Expense reductions (294) 10,253
NET INVESTMENT INCOME 10,171
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain (loss) of 254,457
$767 on sales of investments in affiliated issuers)
Foreign currency transactions (10) 254,447
Change in net unrealized appreciation (depreciation) on:
Investment securities (17,995)
Assets and liabilities in foreign currencies (1) (17,996)
NET GAIN (LOSS) 236,451
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 246,622
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
DECEMBER 31, DECEMBER 31,
1995 1994
INCREASE (DECREASE) IN NET ASSETS
Operations $ 10,171 $ 5,021
Net investment income
Net realized gain (loss) 254,447 81,699
Change in net unrealized appreciation (depreciation) (17,996) (175,645)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 246,622 (88,925)
FROM OPERATIONS
Distributions to shareholders (9,996) (4,492)
From net investment income
From net realized gain (197,011) (82,775)
TOTAL DISTRIBUTIONS (207,007) (87,267)
Share transactions 386,173 492,497
Net proceeds from sales of shares
Reinvestment of distributions 187,436 79,196
Cost of shares redeemed (537,376) (596,061)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 36,233 (24,368)
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 75,848 (200,560)
NET ASSETS
Beginning of period 1,192,636 1,393,196
End of period (including under (over) distribution of net $ 1,268,484 $ 1,192,636
investment income of $(130) and $38, respectively)
OTHER INFORMATION
Shares
Sold 6,641 8,624
Issued in reinvestment of distributions 3,611 1,585
Redeemed (9,471) (10,398)
Net increase (decrease) 781 (189)
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEAR ENDED DECEMBER 31,
1995 1994 1993 D 1992 C 1991
SELECTED PER-SHARE DATA
Net asset value, beginning $ 50.99 $ 59.08 $ 54.20 $ 49.63 $ 38.25
of period
Income from Investment
Operations
Net investment income .46 .20 .17 .58 B .66
Net realized and unrealized 10.71 (4.24) 10.04 7.66 12.99
gain (loss)
Total from investment 11.17 (4.04) 10.21 8.24 13.65
operations
Less Distributions (.47) F (.21) (.26) (.44) (.48)
From net investment income
In excess of net investment - - (.01) - -
income
From net realized gain (9.21) F (3.84) (5.06) (3.23) (1.79)
Total distributions (9.68) (4.05) (5.33) (3.67) (2.27)
Net asset value, end of period $ 52.48 $ 50.99 $ 59.08 $ 54.20 $ 49.63
TOTAL RETURN A 22.11% (6.70) 19.15% 16.77% 36.28%
%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,268 $ 1,193 $ 1,393 $ 1,115 $ 892
(in millions)
Ratio of expenses to average .85% 1.04% .93% .56% .53%
net assets
Ratio of expenses to average net .82% 1.04% .92% .56% .53%
assets after expense E E
reductions
Ratio of net investment income .82% .39% .43% 1.14% 1.43%
to average net assets
Portfolio turnover rate 186% 29% 50% 47% 57%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
B NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
C AS OF JANUARY 1, 1992 THE FUND DISCONTINUED THE USE OF EQUALIZATION
ACCOUNTING.
D EFFECTIVE JANUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2,
"DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME,
CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES."
AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
E FMR HAS DIRECTED CERTAIN PORTFOLIO TRADES TO BROKERS WHO PAID A PORTION
OF THE FUND'S EXPENSES (SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
F THE AMOUNTS SHOWN REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO
TAX DIFFERENCES (SEE NOTE 1 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1995
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 (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange) are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
of their purchase date are valued at amortized cost or original cost plus
accrued interest, both of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are trans-
lated into U.S. dollars at the prevailing exchange rate on the respective
dates of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for foreign
currency transactions, lititgation, 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 and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Distribution in excess of net investment income
and accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), may transfer
uninvested cash balances into one or more joint trading accounts. These
balances are invested in one or more repurchase agreements that mature in
60 days or less from the date of purchase, and are collateralized by U.S.
Treasury or Federal Agency obligations.
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price. FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $664,000 or 0.1%
of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $2,140,309,000 and $2,367,834,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates and is based on
the monthly average net assets of all the mutual funds advised by FMR. The
rates ranged from .2700% to .5200% for the period. In the event that these
rates were lower than the contractual rates in effect during the period,
FMR voluntarily implemented the above rates, as they resulted in the same
or a lower management fee. The annual individual fund fee rate is .30%. The
basic fee is subject to a performance adjustment (up to a maximum of
(plus/minus) .20%) based on the fund's investment performance as compared
to the appropriate index over a specified period of time. For the period,
the management fee was equivalent to an annual rate of .59% of average net
assets after the performance adjustment.
The Board of Trustees has approved a new group fee rate schedule with rates
ranging from .2500% to .5200%. Effective January 1, 1996, FMR voluntarily
agreed to implement this new group fee rate schedule as it results in the
same or a lower management fee.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
Effective January 1, 1995, the Board of Trustees approved a revised
transfer agent con-
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
tract pursuant to which FSC receives account fees and asset-based fees that
vary according to account size and type of account. FSC pays for
typesetting, printing and mailing of all shareholder reports, except proxy
statements. For the period, the transfer agent fees were equivalent to an
annual rate of .19% of average net assets.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $1,366,000 for the period.
5. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$294,000 under this arrangement.
6. 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 during the period 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. $ - $ 1,702 $ 11 $ -
Lifeline Systems, Inc. - 279 - -
Northwest Pipe Co. 1,530 -- -- 1,867
TOTALS $ 1,530 $ 1,981 $ 11 $ 1,867
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and Shareholders of Fidelity Trend Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Trend Fund, including the schedule of portfolio investments, as of
December 31, 1995, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two
years in the period then ended and the financial highlights for each of the
five years in the period then ended. These financial statements and
financial highlights are the responsibility of the fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of December 31, 1995 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable
basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Trend Fund as of December 31, 1995, the results of its
operations for the year then ended, the changes in its net assets for each
of the two years in the period then ended, and the financial highlights for
each of the five years in the period then ended , in conformity with
generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
February 2, 1996
DISTRIBUTIONS
The Board of Trustees of Fidelity Trend Fund voted to pay on February 5,
1996, to shareholders of record at the opening of business on February 2,
1996, a distribution of $.60 derived from capital gains realized from sales
of portfolio securities.
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research (U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
The Chase Manhattan Bank, N.A.
New York, NY
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty
Growth Company Fund
Large Cap Stock Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
