FIDELITY(REGISTERED TRADEMARK)
TREND
FUND
ANNUAL REPORT
DECEMBER 31, 1999
(2_FIDELITY_LOGOS)(registered trademark)
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 Footnotes to the financial
statements.
REPORT OF INDEPENDENT 30 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 31
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This report is printed on recycled paper using soy-based inks.
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 1-800-544-6666 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
The NASDAQ, S&P 500(Registered trademark) and Dow Jones Industrial
Average all closed 1999 at record highs. Investors should note,
however, that much of the year's returns were driven by a single
sector: technology. Most other stocks were flat or down in 1999.
Likewise, bond investors had little cause to celebrate at year's end.
Steadily rising interest rates left the benchmark 30-year Treasury at
its highest yield level in two years.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories 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, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-6666, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you 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. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY TREND 40.73% 124.49% 246.86%
S&P 500 21.04% 251.12% 432.89%
Growth Funds Average 29.27% 214.12% 380.42%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had 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 500SM Index - a market capitalization-weighted index
of common stocks. To measure how the fund's performance stacked up
against its peers, you can compare it to the growth funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past one year average represents a peer
group of 1,149 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges. Lipper has created new comparison categories that group funds
according to portfolio characteristics and capitalization, as well as
by capitalization only. These averages are listed on page 5 of this
report.*
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED DECEMBER 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY TREND 40.73% 17.55% 13.24%
S&P 500 21.04% 28.56% 18.21%
Growth Funds Average 29.27% 25.04% 16.52%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Trend S&P 500
00005 SP001
1989/12/31 10000.00 10000.00
1990/01/31 9136.14 9329.00
1990/02/28 9362.08 9449.34
1990/03/31 9529.99 9699.75
1990/04/30 9067.11 9457.26
1990/05/31 9927.07 10379.34
1990/06/30 9942.96 10308.76
1990/07/31 9745.55 10275.77
1990/08/31 8774.40 9346.84
1990/09/30 8102.76 8891.65
1990/10/31 7760.14 8853.42
1990/11/30 8454.46 9425.35
1990/12/31 8734.03 9688.32
1991/01/31 9282.05 10110.73
1991/02/28 10108.64 10833.64
1991/03/31 10334.70 11095.82
1991/04/30 10439.73 11122.45
1991/05/31 10928.38 11602.94
1991/06/30 10158.88 11071.52
1991/07/31 10862.16 11587.46
1991/08/31 11127.04 11862.08
1991/09/30 11053.97 11663.98
1991/10/31 11170.42 11820.28
1991/11/30 10531.07 11343.92
1991/12/31 11902.44 12641.67
1992/01/31 11976.78 12406.53
1992/02/29 12263.02 12567.82
1992/03/31 11864.63 12322.74
1992/04/30 11794.61 12685.03
1992/05/31 12084.35 12747.19
1992/06/30 11809.10 12557.26
1992/07/31 12473.07 13070.85
1992/08/31 12275.09 12802.90
1992/09/30 12458.59 12953.97
1992/10/31 12755.56 12999.31
1992/11/30 13506.46 13442.58
1992/12/31 13898.75 13607.93
1993/01/31 14232.12 13722.24
1993/02/28 14148.85 13908.86
1993/03/31 14742.67 14202.33
1993/04/30 14200.26 13858.64
1993/05/31 14971.46 14230.05
1993/06/30 15246.51 14271.32
1993/07/31 15205.38 14214.23
1993/08/31 16002.29 14752.95
1993/09/30 16351.89 14639.35
1993/10/31 16650.09 14942.39
1993/11/30 15878.89 14800.44
1993/12/31 16560.13 14979.52
1994/01/31 17218.83 15488.82
1994/02/28 16616.19 15069.08
1994/03/31 15539.83 14412.07
1994/04/30 15626.73 14596.54
1994/05/31 15660.36 14835.92
1994/06/30 15223.10 14472.44
1994/07/31 15632.33 14947.14
1994/08/31 16534.90 15559.97
1994/09/30 16178.92 15178.75
1994/10/31 16251.80 15520.27
1994/11/30 15357.64 14955.03
1994/12/31 15451.12 15176.81
1995/01/31 15320.82 15570.34
1995/02/28 15823.84 16177.12
1995/03/31 16066.25 16654.51
1995/04/30 16296.55 17144.98
1995/05/31 16651.09 17830.27
1995/06/30 17175.32 18244.46
1995/07/31 18011.66 18849.45
1995/08/31 18499.53 18896.76
1995/09/30 19069.21 19694.21
1995/10/31 18587.40 19623.90
1995/11/30 19172.24 20485.39
1995/12/31 18868.09 20879.93
1996/01/31 19249.19 21590.69
1996/02/29 19886.72 21790.83
1996/03/31 19875.81 22000.68
1996/04/30 20406.61 22324.97
1996/05/31 20970.13 22900.73
1996/06/30 20439.33 22987.98
1996/07/31 19272.30 21972.37
1996/08/31 19723.12 22435.77
1996/09/30 20908.32 23698.46
1996/10/31 20682.91 24352.06
1996/11/30 22115.34 26192.83
1996/12/31 22072.54 25673.95
1997/01/31 22981.71 27278.06
1997/02/28 21868.04 27491.92
1997/03/31 20166.98 26362.28
1997/04/30 19913.38 27936.10
1997/05/31 22624.94 29636.85
1997/06/30 24107.52 30964.59
1997/07/31 25777.37 33428.44
1997/08/31 25574.49 31555.78
1997/09/30 27685.22 33284.09
1997/10/31 25348.20 32172.40
1997/11/30 24419.64 33661.66
1997/12/31 23960.70 34239.63
1998/01/31 23942.99 34618.32
1998/02/28 26143.78 37114.99
1998/03/31 28025.74 39015.65
1998/04/30 28579.26 39408.15
1998/05/31 27210.96 38730.72
1998/06/30 27711.34 40303.96
1998/07/31 26475.89 39874.73
1998/08/31 19054.32 34109.64
1998/09/30 20241.06 36294.70
1998/10/31 20927.42 39246.91
1998/11/30 22357.71 41625.67
1998/12/31 24647.07 44024.14
1999/01/31 26369.62 45865.23
1999/02/28 25665.54 44439.74
1999/03/31 26883.28 46217.77
1999/04/30 28220.58 48007.79
1999/05/31 27675.92 46874.32
1999/06/30 29416.18 49475.85
1999/07/31 28508.41 47931.21
1999/08/31 28459.70 47693.95
1999/09/30 27764.48 46386.66
1999/10/31 29256.77 49322.01
1999/11/30 30846.47 50324.73
1999/12/31 34686.48 53288.85
IMATRL PRASUN SHR__CHT 19991231 20000113 115126 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Trend Fund on December 31, 1989. As the chart
shows, by December 31, 1999, the value of the investment would have
grown to $34,686 - a 246.86% increase on the initial investment. For
comparison, look at how the Standard & Poor's 500 Index did over the
same period. With dividends and capital gains, if any, reinvested, the
same $10,000 would have grown to $53,289 - a 432.89% increase.
(checkmark)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
long-term growth and
short-term volatility. 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.
* THE LIPPER MULTI-CAP GROWTH FUNDS AVERAGE REFLECTS THE PERFORMANCE
(EXCLUDING SALES CHARGES) OF MUTUAL FUNDS WITH SIMILAR PORTFOLIO
CHARACTERISTICS AND CAPITALIZATION. THE LIPPER MULTI-CAP SUPERGROUP
AVERAGE REFLECTS THE PERFORMANCE (EXCLUDING SALES CHARGES) OF MUTUAL
FUNDS WITH SIMILAR CAPITALIZATION. AS OF DECEMBER 31, 1999 THE ONE
YEAR, FIVE YEAR AND 10 YEAR CUMULATIVE AND AVERAGE ANNUAL TOTAL
RETURNS FOR THE LIPPER MULTI-CAP GROWTH FUNDS AVERAGE WERE 52.34%,
258.07%, 492.89% AND 52.34%, 28.56% AND 19.17%, RESPECTIVELY; AND THE
ONE YEAR, FIVE YEAR AND 10 YEAR CUMULATIVE AND AVERAGE ANNUAL TOTAL
RETURNS FOR THE LIPPER MULTI-CAP SUPERGROUP AVERAGE WERE 24.95%,
186.76%, 341.11%, AND 24.95%, 22.85%, 15.51%, RESPECTIVELY.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Despite the fifth consecutive year
of returns exceeding 20% for the
Standard & Poor's 500 Index, this
performance was not necessarily an
entirely accurate representation of
the overall health of the U.S. equity
markets. For example, during the
12-month period ending December
31, 1999, the S&P 500 - a
market-capitalization-weighted
index of 500 widely held U.S. stocks
- - returned 21.04%. Interestingly,
however, the top 50 stocks in the
S&P 500 - the so-called "Nifty 50"
- - accounted for 115% of its total
return. Meanwhile, the remaining
450 stocks had a cumulative return
of -3.13%. Overall, more stocks fell
than rose in 1999. Additionally, just
one sector - technology - was
responsible for approximately 70%
of the S&P's return. This incredibly
narrow market breadth was further
illustrated by the technology-laden
NASDAQ Index. Its 12-month return
of 86.12% was the all-time highest
annual return for any major U.S. stock
index. The Dow Jones Industrial
Average - an index of 30 blue-chip
stocks - posted a 27.13% return
during the period. Also dominating
headlines in 1999 was the Federal
Reserve Board's persistent inflation
worries, and its attempts to keep the
same in check by increasing key
short-term interest rates by 0.25
percentage points on three occasions.
(photograph of Nick Thakore)
An interview with Nick Thakore, Portfolio Manager of Fidelity Trend
Fund
Q. HOW DID THE FUND PERFORM, NICK?
A. Very well. For the 12 months that ended December 31, 1999, the fund
had a total return of 40.73%, compared to 21.04% for the Standard &
Poor's 500 Index and 29.27% for the growth funds average tracked by
Lipper Inc.
Q. WHAT ENABLED THE FUND TO FINISH SO FAR AHEAD OF THE INDEX AND THE
AVERAGE?
A. The fund's strong relative performance was due almost entirely to
favorable stock selection. My philosophy is to avoid making big sector
bets except when my conviction about a sector is really compelling. I
will, however, frequently overweight industries within a sector and
specific stocks that I believe in. For example, during the period the
fund's technology weighting on average was close to that of the S&P
500, but I overweighted communications and underweighted computers,
which helped performance. Similarly, within health care I emphasized
biotechnology stocks over those of large drug companies - another
strategy that paid off. Finally, within the communications part of the
utilities sector, I favored newer entrants over incumbents, and that
proved to be the right decision too.
Q. WHAT IS YOUR RATIONALE FOR LIMITING BIG SECTOR BETS?
A. I believe that staying close to the sector weightings of the S&P
500 offers a number of benefits, the biggest of which is more
consistent performance. Nineteen ninety-nine, a year of tremendous
volatility and active sector rotation, illustrated the benefits of
this strategy. There was a powerful rally in cyclical stocks for about
a month last spring, but it was difficult to catch if you weren't
already positioned for it. Since the fund had roughly a market
weighting of cyclical holdings, it was able to participate in that
rally. Likewise, when the big rally occurred in technology during the
last two months of the period, the fund was able to benefit from it.
On the other hand, for the sectors of the fund that were not "hot"
during the period, I tried to add value by selecting the industries
and stocks within those sectors that had the most promise. One measure
of the fund's consistency is the fact that it outperformed the S&P
500 in every month of 1999 except October.
Q. WHICH STOCKS HELPED PERFORMANCE?
A. Microsoft was a big winner. Continued strong earnings, positive
momentum in the technology sector generally and the upcoming launch of
the company's Windows 2000 operating system enabled the stock to rally
sharply as the period drew to a close. California Amplifier, a
wireless equipment company, also made a positive contribution. The
company benefited from the growth of direct-to-home satellite products
and increased interest in using wireless technology to provide
broadband home access. Another strong performer was Calpine, an
independent power producer. Formerly perceived as a slow-growth
holding, the stock surged in 1999 when investors realized that the
company had a huge backlog of promising projects with few competing
projects coming online.
Q. WHICH STOCKS DETRACTED FROM PERFORMANCE?
A. Philip Morris was a disappointment. Although cheap when I bought
it, concerns about smoking-related lawsuits continued to plague the
stock. Tricon Global was another poor performer. The company, which
owns fast-food franchises KFC, Pizza Hut and Taco Bell, suffered from
lackluster revenue growth and poorly received product introductions.
Finally, Federal-Mogul, an auto supply company, failed to keep up with
earnings estimates due to a slowdown in demand and difficulties in
assimilating a recent acquisition. I sold the latter two holdings.
Q. WHAT'S YOUR OUTLOOK, NICK?
A. There are a number of reasons to be cautious about stocks right
now, including rich valuations, excessively positive investor
sentiment and rising interest rates. However, I do not plan to
underestimate this durable bull market or the technology juggernaut
underlying it, especially given the strong basic business prospects of
many technology companies. For the most part, I foresee maintaining my
strategy of closely mirroring the sector weightings of the S&P 500,
while attempting to add value through my industry and stock selection.
I believe there are many attractively valued stocks relative to their
growth outlooks.
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 AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)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
FUND NUMBER: 005
TRADING SYMBOL: FTRNX
START DATE: June 16, 1958
SIZE: as of December 31,
1999, more than $1.5
billion
MANAGER: Nick Thakore,
since 1998; manager, Fidelity
Utilities Fund, Fidelity Advisor
Utilities Growth Fund and
Fidelity Select Utilities Growth
Portfolio, 1997-1998;
Fidelity Select
Telecommunications Portfolio,
1996-1998; joined Fidelity
in 1993
NICK THAKORE ON
OPPORTUNITIES IN THE
WIRELESS INDUSTRY:
"I view communications as one
of the best growth areas in the
economy over the next five years.
While there are many different
ways to play this growth, I believe
that one area where the growth
prospects are especially attractive
relative to valuations is the
wireless industry.
"There are several reasons to be
optimistic about wireless stocks.
The use of wireless technology has
been growing at rapid rates and
should continue to do so for the
foreseeable future. One particularly
potent driver of wireless growth is
likely to be the capability of wireless
handsets to allow data and Internet
traffic. Wireless data is still in its
infancy in the U.S. but appears
poised for explosive growth in the
next few years.
"The three primary ways of
participating in the wireless market
are through wireless service
providers, wireless equipment
companies and wireless component
makers. The fund has substantial
investments in all three areas. Most
of these companies are based in the
United States, but some are
located in Latin America, Asia or
Europe."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF DECEMBER
31, 1999
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Microsoft Corp. 5.4 3.5
Caremark Rx, Inc. 2.5 0.0
General Electric Co. 2.2 1.8
Cisco Systems, Inc. 1.9 1.4
Exxon Mobil Corp. 1.9 2.1
Westinghouse Air Brake Co. 1.7 0.0
Dell Computer Corp. 1.6 0.0
AT&T Corp. 1.5 0.0
Kinder Morgan, Inc. 1.4 0.0
Wal-Mart Stores, Inc. 1.4 0.4
21.5 9.2
TOP FIVE MARKET SECTORS AS OF
DECEMBER 31, 1999
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
TECHNOLOGY 29.3 20.1
UTILITIES 11.5 13.0
FINANCE 10.4 13.2
HEALTH 7.1 7.9
INDUSTRIAL MACHINERY & 6.8 5.9
EQUIPMENT
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF DECEMBER 31, 1999 * AS OF JUNE 30, 1999 **
Stocks 98.6% Stocks 99.5%
Short-Term Investments and Short-Term Investments and
Net Other Assets 1.4% Net Other Assets 0.5%
* FOREIGN INVESTMENTS 10.9% ** FOREIGN INVESTMENTS 4.2%
Row: 1, Col: 1, Value: 98.59999999999999 Row: 1, Col: 1, Value: 99.5
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0 Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 0.0 Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0 Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0 Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 1.4 Row: 1, Col: 8, Value: 0.5
</TABLE>
PRIOR TO THIS REPORT, CERTAIN INFORMATION RELATED TO PORTFOLIO
HOLDINGS WAS STATED AS A PERCENTAGE OF THE FUND'S INVESTMENTS.
INVESTMENTS DECEMBER 31, 1999
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 98.6%
SHARES VALUE (NOTE 1) (000S)
AEROSPACE & DEFENSE - 1.1%
AEROSPACE & DEFENSE - 0.8%
Boeing Co. 114,000 $ 4,738
United Technologies Corp. 120,200 7,813
12,551
SHIP BUILDING & REPAIR - 0.3%
General Dynamics Corp. 72,600 3,830
TOTAL AEROSPACE & DEFENSE 16,381
BASIC INDUSTRIES - 6.3%
CHEMICALS & PLASTICS - 1.5%
Dow Chemical Co. 17,300 2,312
E. I. du Pont de Nemours and 189,100 12,457
Co.
Georgia Gulf Corp. 128,900 3,923
Praxair, Inc. 94,900 4,775
23,467
IRON & STEEL - 0.8%
AK Steel Holding Corp. 205,500 3,879
Bethlehem Steel Corp. (a) 459,700 3,850
Nucor Corp. 81,000 4,440
12,169
METALS & MINING - 2.4%
Alcoa, Inc. 69,000 5,727
Furukawa Electric Co. Ltd. 1,371,000 20,793
Inco Ltd. 291,800 6,777
Olin Corp. 154,200 3,055
36,352
PAPER & FOREST PRODUCTS - 1.6%
Boise Cascade Corp. 73,600 2,981
Bowater, Inc. 111,500 6,056
Champion International Corp. 25,400 1,573
Consolidated Papers, Inc. 93,600 2,978
Mead Corp. 72,300 3,141
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS -
CONTINUED
Pentair, Inc. 142,800 $ 5,498
Weyerhaeuser Co. 28,100 2,018
24,245
TOTAL BASIC INDUSTRIES 96,233
CONSTRUCTION & REAL ESTATE -
0.5%
BUILDING MATERIALS - 0.4%
American Standard Companies, 133,400 6,120
Inc. (a)
CONSTRUCTION - 0.1%
Centex Corp. 13,700 338
Kaufman & Broad Home Corp. 16,500 399
Lennar Corp. 32,500 528
1,265
TOTAL CONSTRUCTION & REAL 7,385
ESTATE
DURABLES - 2.8%
AUTOS, TIRES, & ACCESSORIES -
1.6%
Ford Motor Co. 55,500 2,966
General Motors Corp. 40,400 2,937
Navistar International Corp. 388,600 18,410
(a)
24,313
CONSUMER ELECTRONICS - 0.3%
Black & Decker Corp. 86,600 4,525
TEXTILES & APPAREL - 0.9%
Jones Apparel Group, Inc. (a) 270,200 7,329
Mohawk Industries, Inc. (a) 113,700 2,999
Shaw Industries, Inc. 228,600 3,529
13,857
TOTAL DURABLES 42,695
ENERGY - 4.8%
ENERGY SERVICES - 0.6%
BJ Services Co. (a) 88,800 3,713
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Halliburton Co. 117,400 $ 4,725
Precision Drilling Corp. 37,200 951
Class A (a)
9,389
OIL & GAS - 4.2%
Amerada Hess Corp. 35,000 1,986
Anadarko Petroleum Corp. 46,800 1,597
Burlington Resources, Inc. 109,300 3,614
Chesapeake Energy Corp. (a) 474,300 1,126
Exxon Mobil Corp. 360,965 29,080
Frontier Oil Corp. (a) 401,500 2,710
Kerr-McGee Corp. 30,300 1,879
Occidental Petroleum Corp. 140,300 3,034
Ocean Energy, Inc. (a) 173,100 1,342
Pioneer Natural Resources Co. 160,200 1,432
Santa Fe Snyder Corp. (a) 439,845 3,519
Sunoco, Inc. 288,800 6,787
Tosco Corp. 109,700 2,982
USX - Marathon Group 79,100 1,953
Vastar Resources, Inc. 22,500 1,328
64,369
TOTAL ENERGY 73,758
FINANCE - 10.4%
BANKS - 1.0%
Bank of America Corp. 45,170 2,267
Chase Manhattan Corp. 121,800 9,462
Marshall & Ilsley Corp. 60,300 3,788
15,517
CREDIT & OTHER FINANCE - 3.8%
American Express Co. 40,000 6,650
Associates First Capital 381,300 10,462
Corp. Class A
Citigroup, Inc. 268,100 14,896
Household International, Inc. 144,000 5,364
JAFCO Co. Ltd. 42,000 15,000
Providian Financial Corp. 63,100 5,746
58,118
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FINANCE - CONTINUED
FEDERAL SPONSORED CREDIT - 1.5%
Fannie Mae 292,100 $ 18,238
Freddie Mac 106,200 4,998
23,236
INSURANCE - 2.2%
Ambac Financial Group, Inc. 59,400 3,100
American International Group, 187,925 20,319
Inc.
Financial Security Assurance 57,200 2,982
Holdings Ltd.
MBIA, Inc. 80,600 4,257
PMI Group, Inc. 77,200 3,768
34,426
SECURITIES INDUSTRY - 1.9%
Charles Schwab Corp. 174,700 6,704
Daiwa Securities Co. Ltd. 1,134,000 17,742
Waddell & Reed Financial, 158,800 4,307
Inc. Class A
28,753
TOTAL FINANCE 160,050
HEALTH - 7.1%
DRUGS & PHARMACEUTICALS - 7.1%
Allergan, Inc. 61,400 3,055
American Home Products Corp. 150,400 5,931
Biogen, Inc. (a) 92,100 7,782
Bristol-Myers Squibb Co. 143,300 9,198
Cephalon, Inc. (a) 83,800 2,896
Eli Lilly & Co. 150,600 10,015
Forest Laboratories, Inc. (a) 105,500 6,482
Genentech, Inc. 31,300 4,210
IDEC Pharmaceuticals Corp. (a) 66,100 6,494
Medimmune, Inc. (a) 30,000 4,976
Merck & Co., Inc. 67,100 4,500
Millennium Pharmaceuticals, 29,800 3,636
Inc. (a)
PE Corp. - Celera Genomics 89,100 13,276
Group (a)
QLT PhotoTherapeutics, Inc. 19,400 1,140
(a)
Schering-Plough Corp. 119,100 5,025
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS -
CONTINUED
Sepracor, Inc. (a) 72,000 $ 7,142
Warner-Lambert Co. 154,100 12,627
108,385
INDUSTRIAL MACHINERY &
EQUIPMENT - 6.8%
ELECTRICAL EQUIPMENT - 5.5%
ANTEC Corp. (a) 245,600 8,964
California Amplifier, Inc. (a) 514,500 13,538
General Electric Co. 214,700 33,225
Hutchison Whampoa Ltd. 340,000 4,946
Omnipoint Corp. (a) 60,500 7,298
Pinnacle Systems (a) 376,600 15,323
83,294
INDUSTRIAL MACHINERY &
EQUIPMENT - 1.3%
Caterpillar, Inc. 110,000 5,177
Ingersoll-Rand Co. 160,800 8,854
Parker-Hannifin Corp. 118,100 6,060
20,091
TOTAL INDUSTRIAL MACHINERY & 103,385
EQUIPMENT
MEDIA & LEISURE - 3.3%
BROADCASTING - 1.7%
AT&T Corp. - Liberty Media 250,600 14,222
Group Class A (a)
CBS Corp. (a) 51,440 3,289
MediaOne Group, Inc. (a) 25,700 1,974
TV Azteca SA de CV sponsored 230,000 2,070
ADR
UnitedGlobalCom, Inc. (a) 69,600 4,916
26,471
ENTERTAINMENT - 0.5%
Mandalay Resort Group (a) 395,900 7,967
LODGING & GAMING - 0.7%
Starwood Hotels & Resorts 343,200 8,065
Worldwide, Inc. unit
WMS Industries, Inc. (a) 201,400 2,643
10,708
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
MEDIA & LEISURE - CONTINUED
RESTAURANTS - 0.4%
McDonald's Corp. 136,800 $ 5,515
TOTAL MEDIA & LEISURE 50,661
NONDURABLES - 2.1%
FOODS - 0.2%
Nabisco Group Holdings Corp. 308,700 3,280
HOUSEHOLD PRODUCTS - 1.5%
Avon Products, Inc. 164,300 5,422
Procter & Gamble Co. 161,500 17,694
23,116
TOBACCO - 0.4%
Philip Morris Companies, Inc. 257,500 5,971
TOTAL NONDURABLES 32,367
PRECIOUS METALS - 0.7%
Newmont Mining Corp. 295,400 7,237
Placer Dome, Inc. 303,500 3,262
10,499
RETAIL & WHOLESALE - 5.9%
APPAREL STORES - 1.4%
Abercrombie & Fitch Co. Class 479,700 12,802
A (a)
The Limited, Inc. 192,600 8,342
21,144
DRUG STORES - 0.1%
Walgreen Co. 50,600 1,480
GENERAL MERCHANDISE STORES -
2.4%
Ames Department Stores, Inc. 69,000 1,988
(a)
Costco Wholesale Corp. (a) 49,300 4,499
Dayton Hudson Corp. 121,700 8,937
Wal-Mart Stores, Inc. 312,400 21,595
37,019
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
RETAIL & WHOLESALE - CONTINUED
GROCERY STORES - 0.6%
Fleming Companies, Inc. 648,647 $ 6,649
Safeway, Inc. (a) 76,500 2,721
9,370
RETAIL & WHOLESALE,
MISCELLANEOUS - 1.4%
Best Buy Co., Inc. (a) 85,700 4,301
Home Depot, Inc. 216,750 14,861
Lowe's Companies, Inc. 48,000 2,868
22,030
TOTAL RETAIL & WHOLESALE 91,043
SERVICES - 3.8%
ADVERTISING - 0.4%
MyPoints.com, Inc. 71,800 5,313
LEASING & RENTAL - 0.4%
Blockbuster, Inc. Class A 82,600 1,105
Crown Castle International 87,100 2,798
Corp. (a)
Hertz Corp. Class A 55,800 2,797
6,700
SERVICES - 3.0%
Caremark Rx, Inc. (a) 7,699,500 38,979
FreeMarkets, Inc. 11,100 3,789
True North Communications 79,400 3,548
46,316
TOTAL SERVICES 58,329
TECHNOLOGY - 29.3%
COMMUNICATIONS EQUIPMENT - 5.2%
3Com Corp. (a) 50,200 2,359
Aspect Communications Corp. 142,300 5,567
(a)
Cisco Systems, Inc. (a) 277,300 29,706
Ditech Communications Corp. 123,600 11,557
Efficient Networks, Inc. 8,600 585
Globalstar Telecommunications 81,300 3,577
Ltd. (a)
Lucent Technologies, Inc. 108,210 8,095
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
COMMUNICATIONS EQUIPMENT -
CONTINUED
Nokia AB sponsored ADR 71,600 $ 13,604
Pacific Century CyberWorks 640,000 1,491
Ltd. (a)
Telefonaktiebolaget LM 60,400 3,968
Ericsson sponsored ADR
80,509
COMPUTER SERVICES & SOFTWARE
- - 14.0%
America Online, Inc. (a) 177,600 13,398
AppNet Systems, Inc. 60,000 2,625
Aspect Development, Inc. (a) 10,000 685
At Plan, Inc. 17,200 170
Axent Technolgies, Inc. (a) 9,500 200
Banyan Systems, Inc. (a) 10,000 200
Cambridge Technology 385,300 10,114
Partners, Inc. (a)
Citrix Systems, Inc. (a) 126,100 15,510
Computer Associates 172,000 12,029
International, Inc.
Exact Holdings NV (a) 16,929 901
Exodus Communications, Inc. 70,800 6,288
(a)
IFX Corp. (a) 34,500 1,143
Internet Initiative Japan, 25,200 2,449
Inc. sponsored ADR
Microsoft Corp. (a) 710,700 82,968
New Era of Networks, Inc. (a) 53,500 2,548
Oracle Corp. (a) 70,600 7,912
Project Software & 43,000 2,387
Development, Inc. (a)
Redback Networks, Inc. 25,400 4,509
SalesLogix Corp. 216,200 8,878
Technology Solutions, Inc. (a) 347,500 11,381
Trans Cosmos, Inc. 23,500 10,025
TSI International Software 83,900 4,751
Ltd. (a)
Vignette Corp. 34,600 5,640
Yahoo!, Inc. (a) 19,300 8,351
215,062
COMPUTERS & OFFICE EQUIPMENT
- - 4.9%
Comverse Technology, Inc. (a) 85,400 12,362
Dell Computer Corp. (a) 487,900 24,883
EMC Corp. (a) 29,000 3,168
Hewlett-Packard Co. 54,300 6,187
MTI Technology Corp. (a) 138,700 5,115
Network Appliance, Inc. (a) 35,700 2,965
Safeguard Scientifics, Inc. 26,100 4,230
(a)
SanDisk Corp. (a) 71,500 6,882
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT
- - CONTINUED
Softbank Corp. 4,200 $ 4,019
Symbol Technologies, Inc. 87,700 5,574
75,385
ELECTRONIC INSTRUMENTS - 0.1%
NetOptix Corp. (a) 29,900 1,996
ELECTRONICS - 5.1%
Applied Micro Circuits Corp. 24,100 3,067
(a)
AVX Corp. 102,700 5,129
Brocade Communications 24,900 4,407
Systems, Inc.
Celestica, Inc. (sub. vtg.) 122,000 6,814
(a)
Epcos AG sponsored ADR (a) 57,400 4,287
KEMET Corp. (a) 110,000 4,957
Kyocera Corp. 40,000 10,372
Micron Technology, Inc. (a) 46,500 3,615
Motorola, Inc. 119,100 17,537
National Semiconductor Corp. 256,600 10,986
(a)
S3, Inc. (a) 587,000 6,787
77,958
TOTAL TECHNOLOGY 450,910
TRANSPORTATION - 2.2%
AIR TRANSPORTATION - 0.4%
AMR Corp. (a) 86,600 5,802
RAILROADS - 1.8%
Burlington Northern Santa Fe 70,300 1,705
Corp.
Westinghouse Air Brake Co. 1,460,592 25,926
27,631
TOTAL TRANSPORTATION 33,433
UTILITIES - 11.5%
CELLULAR - 3.5%
ALLTEL Corp. 51,400 4,250
China Telecom (Hong Kong) 950,000 6,107
Ltd. (a)
LCC International, Inc. (a) 191,700 3,822
Nextel Communications, Inc. 61,200 6,311
Class A (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UTILITIES - CONTINUED
CELLULAR - CONTINUED
QUALCOMM, Inc. (a) 62,843 $ 11,068
Sprint Corp. - PCS Group 49,700 5,094
Series 1 (a)
Tele Sudeste Celular 98,500 3,823
Participacoes SA ADR
Telesp Celular Participacoes 86,400 3,661
SA ADR
Telesystem International 260,900 9,576
Wireless, Inc. (sub. vtg.)
(a)
53,712
ELECTRIC UTILITY - 1.2%
Calpine Corp. (a) 236,800 15,155
Illinova Corp. 81,100 2,818
17,973
GAS - 1.7%
Dynegy, Inc. 178,800 4,347
Kinder Morgan, Inc. 1,078,097 21,764
26,111
TELEPHONE SERVICES - 4.9%
AT&T Corp. 438,700 22,264
BellSouth Corp. 266,500 12,476
BroadWing, Inc. 227,800 8,400
CenturyTel, Inc. 110,800 5,249
FirstCom Corp. (a) 122,000 4,484
Global Crossing Ltd. (a) 114,600 5,730
Intermedia Communications, 89,000 3,454
Inc. (a)
MCI WorldCom, Inc. (a) 141,957 7,533
TALK.com, Inc. (a) 338,200 6,003
75,593
WATER - 0.2%
Vivendi SA (a) 28,500 2,571
TOTAL UTILITIES 175,960
TOTAL COMMON STOCKS 1,511,474
(Cost $1,218,315)
CASH EQUIVALENTS - 0.7%
SHARES VALUE (NOTE 1) (000S)
Central Cash Collateral Fund, 1,514,400 $ 1,514
4.97% (b)
Taxable Central Cash Fund, 9,475,029 9,475
5.12% (b)
TOTAL CASH EQUIVALENTS 10,989
(Cost $10,989)
TOTAL INVESTMENT PORTFOLIO - 1,522,463
99.3%
(Cost $1,229,304)
NET OTHER ASSETS - 0.7% 10,758
NET ASSETS - 100% $ 1,533,221
</TABLE>
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
Distribution of investments by country of issue, as a percentage of
net assets, is as follows:
United States of America 89.1%
Japan 5.4
Canada 1.9
Others (individually less 3.6
than 1%)
100.0%
INCOME TAX INFORMATION
At December 31, 1999, the aggregate cost of investment securities for
income tax purposes was $1,240,311,000. Net unrealized appreciation
aggregated $282,152,000, of which $325,679,000 related to appreciated
investment securities and $43,527,000 related to depreciated
investment securities.
The fund hereby designates approximately $40,336,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNT) DECEMBER 31, 1999
ASSETS
Investment in securities, at $ 1,522,463
value (cost $1,229,304) -
See accompanying schedule
Cash 5,204
Receivable for investments 60,370
sold
Receivable for fund shares 980
sold
Dividends receivable 1,026
Interest receivable 104
Other receivables 2,120
TOTAL ASSETS 1,592,267
LIABILITIES
Payable for investments $ 54,362
purchased
Payable for fund shares 2,586
redeemed
Accrued management fee 466
Other payables and accrued 118
expenses
Collateral on securities 1,514
loaned, at value
TOTAL LIABILITIES 59,046
NET ASSETS $ 1,533,221
Net Assets consist of:
Paid in capital $ 1,123,794
Undistributed net investment 1,421
income
Accumulated undistributed net 114,875
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 293,131
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 21,378 shares $ 1,533,221
outstanding
NET ASSET VALUE, offering $71.72
price and redemption price
per share ($1,533,221
(divided by) 21,378 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED DECEMBER 31, 1999
INVESTMENT INCOME $ 9,597
Dividends
Interest 504
Security lending 28
TOTAL INCOME 10,129
EXPENSES
Management fee Basic fee $ 7,400
Performance adjustment (2,713)
Transfer agent fees 1,977
Accounting and security 433
lending fees
Non-interested trustees' 9
compensation
Custodian fees and expenses 83
Registration fees 51
Audit 49
Legal 24
Interest 65
Miscellaneous 18
Total expenses before 7,396
reductions
Expense reductions (850) 6,546
NET INVESTMENT INCOME 3,583
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 346,344
Foreign currency transactions (78) 346,266
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 99,384
Assets and liabilities in (49) 99,335
foreign currencies
NET GAIN (LOSS) 445,601
NET INCREASE (DECREASE) IN $ 449,184
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED DECEMBER 31, 1999 YEAR ENDED DECEMBER 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 3,583 $ 1,313
income
Net realized gain (loss) 346,266 (49,738)
Change in net unrealized 99,335 89,719
appreciation (depreciation)
NET INCREASE (DECREASE) IN 449,184 41,294
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (3,582) -
From net investment income
In excess of net investment (406) -
income
From net realized gain (122,659) -
TOTAL DISTRIBUTIONS (126,647) -
Share transactions Net 428,586 794,088
proceeds from sales of shares
Reinvestment of distributions 110,094 -
Cost of shares redeemed (523,450) (1,069,994)
NET INCREASE (DECREASE) IN 15,230 (275,906)
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 337,767 (234,612)
IN NET ASSETS
NET ASSETS
Beginning of period 1,195,454 1,430,066
End of period (including $ 1,533,221 $ 1,195,454
undistributed net investment
income of $1,421 and $1,003,
respectively)
OTHER INFORMATION
Shares
Sold 6,687 13,653
Issued in reinvestment of 1,599 -
distributions
Redeemed (8,387) (18,604)
Net increase (decrease) (101) (4,951)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED DECEMBER 31, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 55.66 $ 54.11 $ 56.81 $ 52.48 $ 50.99
of period
Income from Investment
Operations
Net investment income .18 B .05 B .08 B .62 C .46
Net realized and unrealized 22.23 1.50 4.46 8.18 10.71
gain (loss)
Total from investment 22.41 1.55 4.54 8.80 11.17
operations
Less Distributions
From net investment income (.18) - (.05) (.45) (.47)
In excess of net investment (.02) - - - -
income
From net realized gain (6.15) - (7.19) (4.02) (9.21)
Total distributions (6.35) - (7.24) (4.47) (9.68)
Net asset value, end of period $ 71.72 $ 55.66 $ 54.11 $ 56.81 $ 52.48
TOTAL RETURN A 40.73% 2.86% 8.55% 16.98% 22.11%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,533 $ 1,195 $ 1,430 $ 1,332 $ 1,268
(in millions)
Ratio of expenses to average .58% .62% .65% .66% .85%
net assets
Ratio of expenses to average .51% D .54% D .59% D .64% D .82% D
net assets after expense
reductions
Ratio of net investment .28% .10% .13% 1.77% .82%
income to average net assets
Portfolio turnover rate 309% 348% 334% 142% 186%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
C INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.28 PER SHARE.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended December 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Trend Fund (the fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company organized as a Massachusetts business trust and is authorized
to issue an unlimited number of shares. The financial statements have
been prepared in conformity with generally accepted accounting
principles which require management to make certain estimates and
assumptions at the date of the financial statements. 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. Foreign securities are valued based
on quotations from the principal market in which such securities are
normally traded. If trading or events occurring in other markets after
the close of the principal market in which foreign securities are
traded, and before the close of the business of the fund, are expected
to materially affect the value of those securities, then they are
valued at their fair value taking this trading or these events into
account. Fair value is determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. 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. Short-term securities with remaining maturities of
sixty days or less for which quotations are not readily available 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.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. 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."
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
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. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of
such taxes is uncertain.
DEFERRED TRUSTEE COMPENSATION. Under a Deferred Compensation Plan (the
Plan) non-interested Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of, their annual
compensation. Deferred amounts are treated as though equivalent dollar
amounts had been invested in shares of the fund or are invested in a
cross-section of other Fidelity funds. Deferred amounts remain in the
fund until distributed in accordance with the Plan.
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 litigation proceeds, foreign currency transactions,
passive foreign investment companies (PFIC), capital loss
carryforwards 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 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.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated
securities. 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 foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). 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.
CENTRAL CASH FUNDS. Pursuant to an Exemptive Order issued by the SEC,
the fund may invest in the Taxable Central Cash Fund and the Central
Cash Collateral Fund(the Cash Funds) managed by Fidelity Investments
Money Management, Inc., an affiliate of FMR. The Cash Funds are
open-end money market funds available only to investment companies and
other accounts managed by FMR and its affiliates. The Cash Funds seek
preservation of capital, liquidity, and current income. Income
distributions from the Cash Funds are declared daily and paid monthly
from net interest income. Income distributions earned by the fund are
recorded as either interest income or security lending income in the
accompanying financial statements.
INTERFUND LENDING PROGRAM. Pursuant to an Exemptive Order issued by
the SEC, the fund, along with other registered investment companies
having management contracts with FMR, may participate in an interfund
lending program. This program provides an alternative credit facility
allowing the fund to borrow from, or lend money to, other
participating funds.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $3,932,611,000 and $4,058,727,000, respectively, of which
U.S. government and government agency obligations aggregated $0 and
$10,000,000, 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 .2167% to
.5200% for the period. The annual individual fund fee rate is .30%. 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
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
MANAGEMENT FEE - CONTINUED
same or a lower management fee. The basic fee is subject to a
performance adjustment (up to a maximum of (plus/minus).20% of the
fund's average net assets over the performance period) 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 .37% of average net assets after
the performance adjustment.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the fund's transfer, dividend disbursing and
shareholder servicing agent. 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 .16% of average net assets.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the fund's
accounting records and administers the security lending program. The
security lending fee is based on the number and duration of lending
transactions. The accounting fee is based on the level of average net
assets for the month plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $359,000 for the
period.
5. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a borrower.
The average daily loan balance during the period for which loans were
outstanding amounted to $10,241,000. The weighted average interest
rate was 5.37%. Interest expense includes $24,000 paid under the
interfund lending program.
6. SECURITY LENDING.
The fund lends portfolio securities from time to time in order to earn
additional income. The fund receives collateral in the form of U.S.
Treasury obligations, letters of credit, and/or cash against the
loaned securities, and maintains collateral in an amount not less than
100% of the market value of the loaned securities during the period of
the loan. The market value of the loaned securities is determined at
the close of business of the fund and any additional required
collateral is delivered to the fund on the next business day. If the
borrower defaults on its obligation to return the securities loaned
because of insolvency or other reasons, the fund could experience
delays and costs in recovering the securities loaned or in gaining
access to the collateral. At period end, the value of the securities
loaned amounted to $1,431,000. The fund received cash collateral of
$1,514,000 which was invested in cash equivalents.
7. 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. The interest
rate on the borrowings is the bank's base rate, as revised from time
to time. The average daily loan balance during the period for which
loans were outstanding amounted to $7,612,000. The weighted average
interest rate was 5.19%. Interest expense includes $41,000 paid under
the bank borrowing program.
8. 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 $832,000 under this arrangement.
In addition, through arrangements with the fund's custodian and
transfer agent, credits realized as a result of uninvested cash
balances were used to reduce a portion of the fund's expenses. During
the period, the fund's custodian and transfer agent fees were reduced
by $1,000 and $17,000, respectively, under these arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and the Shareholders of Fidelity Trend Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Trend Fund at December 31, 1999, and the results of its
operations, the changes in its net assets and the financial highlights
for the periods indicated, in conformity with accounting principles
generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fidelity Trend Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with auditing standards
generally accepted in the United States, which require that we plan
and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at December
31, 1999 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
February 8, 2000
DISTRIBUTIONS
The Board of Trustees of Fidelity Trend Fund voted to pay on February
7, 2000, to shareholders of record at the opening of business on
February 4, 2000, a distribution of $5.02 per share derived from
capital gains realized from sales of portfolio securities and a
dividend of $.51 per share from net investment income.
The fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends.
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
Robert C. Pozen, Senior Vice President
Abigail P. Johnson, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Ned C. Lautenbach
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
*INDEPENDENT TRUSTEES
CUSTODIAN
The Chase Manhattan Bank
New York, NY
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THE FIDELITY TELEPHONE CONNECTION
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Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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Telephone (FASTSM) 1-800-544-5555
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