(2_FIDELITY_LOGOS)FIDELITY
MAGELLAN(Registered trademark)
FUND
ANNUAL REPORT
MARCH 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the last six
months.
INVESTMENTS 11 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 46 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 50 Footnotes to the financial
statements.
REPORT OF INDEPENDENT 59 The auditor's opinion.
ACCOUNTANTS
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first few months of 1994 were an unsettling time for many investors.
After three years of a nearly perfect environment for stock market
investing, stock prices fell in March. Investors disagree about whether
this decline represents only a short-term correction or signals the
beginning of a longer bear market. One can collect statistics to support
either opinion, but of course, nobody knows for sure what will happen to
stock prices in the months ahead.
We do know, however, that market declines are a normal part of stock market
investing. We have historically seen corrections of 10% or more every two
years. That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful stock market
investors in every market cycle.
First, take a long-term approach when investing in stocks and stock funds.
If you can afford to leave your money invested through the market's
inevitable ups and downs, you will greatly reduce your vulnerability to any
single decline. Over time, stock prices have gone up - and have
significantly outperformed other types of investments and stayed ahead of
inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a stable investment, such as a money market fund.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't protect you from a loss in a continuously declining market, but it
should help you lower the average cost of your purchases.
If you have questions, please call us at 1-800-544-8888. We would be happy
to send you a Fidelity FundMatch kit, which can help you determine the mix
of investments that is right for you. You might also find it convenient to
set up a regular investment plan using the Fidelity Automatic Account
Builder.
We look forward to hearing from you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MARCH 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Magellan Fund 12.94% 117.25% 465.13%
Magellan (incl. 3% sales charge) 9.55% 110.73% 448.17%
S&P 500(Registered trademark) 1.47% 77.23% 296.63%
Average Growth Fund 3.79% 78.12% 249.75%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one, five, or ten years. You can compare
these figures to the performance of the Standard & Poor's 500 Composite
Stock Price Index - a common proxy for the U.S. stock market. You can also
compare them to the average growth fund, which reflects the performance of
over 470 growth funds tracked by Lipper Analytical Services. Both
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MARCH 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Magellan Fund 12.94% 16.79% 18.91%
Magellan (incl. 3% sales charge) 9.55% 16.08% 18.55%
S&P 500(Registered trademark) 1.47% 12.13% 14.77%
Average Growth Fund 3.79% 11.91% 12.85%
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
Manager: IncomMagellan (021) S&P 500
03/31/84 9700.00 10000.00
04/30/84 9622.87 10095.00
05/31/84 8966.44 9535.74
06/30/84 9256.09 9742.66
07/31/84 9109.71 9621.85
08/31/84 10171.73 10685.07
09/30/84 10190.41 10687.21
10/31/84 10321.22 10728.89
11/30/84 10196.64 10608.72
12/31/84 10492.51 10888.79
01/31/85 11554.54 11737.03
02/28/85 11635.51 11881.39
03/31/85 11738.29 11889.71
04/30/85 11800.58 11879.01
05/31/85 12438.57 12565.62
06/30/85 12810.56 12762.90
07/31/85 12906.88 12743.75
08/31/85 12969.99 12635.43
09/30/85 12362.18 12239.94
10/31/85 13162.63 12805.43
11/30/85 14275.29 13683.88
12/31/85 15015.96 14346.18
01/31/86 15607.16 14426.52
02/28/86 17221.36 15505.62
03/31/86 18380.52 16370.84
04/30/86 18463.55 16185.85
05/31/86 19070.36 17046.93
06/30/86 19524.93 17335.03
07/31/86 18222.54 16366.00
08/31/86 19395.05 17580.35
09/30/86 17746.33 16126.46
10/31/86 18673.51 17056.96
11/30/86 18861.11 17471.44
12/31/86 18581.42 17025.92
01/31/87 20997.12 19319.31
02/28/87 22554.16 20082.42
03/31/87 22840.38 20662.80
04/30/87 22474.01 20478.91
05/31/87 22496.93 20657.07
06/30/87 23428.25 21700.25
07/31/87 24573.18 22800.46
08/31/87 25560.03 23650.91
09/30/87 24932.03 23132.96
10/31/87 18498.24 18150.12
11/30/87 17101.26 16654.55
12/31/87 18767.32 17921.96
01/31/88 19511.46 18676.48
02/29/88 20695.53 19546.80
03/31/88 20639.37 18942.80
04/30/88 21009.10 19153.07
05/31/88 20952.94 19319.70
06/30/88 22385.06 20206.47
07/31/88 22239.98 20129.69
08/31/88 21533.28 19445.28
09/30/88 22436.54 20273.65
10/31/88 22904.56 20837.26
11/30/88 22595.67 20539.28
12/31/88 23039.65 20898.72
01/31/89 24908.76 22428.51
02/28/89 24503.47 21870.04
03/31/89 25233.00 22379.61
04/30/89 26501.32 23541.11
05/31/89 27900.53 24494.53
06/30/89 27658.46 24354.91
07/31/89 29982.29 26554.16
08/31/89 30766.59 27074.62
09/30/89 31299.13 26963.61
10/31/89 30316.35 26338.06
11/30/89 30815.00 26875.35
12/31/89 31007.81 27520.36
01/31/90 29007.97 25673.74
02/28/90 29603.78 26004.94
03/31/90 30360.19 26694.07
04/30/90 29593.42 26026.71
05/31/90 32225.51 28564.32
06/30/90 32365.58 28370.08
07/31/90 31999.26 28279.30
08/31/90 28863.97 25722.85
09/30/90 27032.37 24470.15
10/31/90 26698.37 24364.92
11/30/90 28718.52 25938.90
12/31/90 29609.73 26662.59
01/31/91 31679.61 27825.08
02/28/91 34430.30 29814.58
03/31/91 35599.75 30536.09
04/30/91 35731.52 30609.38
05/31/91 37768.93 31931.70
06/30/91 35549.56 30469.23
07/31/91 37757.61 31889.10
08/31/91 38918.25 32644.87
09/30/91 38771.05 32099.70
10/31/91 39291.92 32529.83
11/30/91 37349.97 31218.88
12/31/91 41758.17 34790.32
01/31/92 41776.43 34143.22
02/29/92 42622.43 34587.08
03/31/92 41466.03 33912.63
04/30/92 42080.75 34909.67
05/31/92 42483.94 35080.72
06/30/92 41735.64 34558.02
07/31/92 42906.89 35971.44
08/31/92 41976.40 35234.03
09/30/92 42457.91 35649.79
10/31/92 42757.23 35774.57
11/30/92 43837.39 36994.48
12/31/92 44687.32 37449.51
01/31/93 45864.61 37764.09
02/28/93 46822.04 38277.68
03/31/93 48538.33 39085.34
04/30/93 49013.50 38139.47
05/31/93 50945.32 39161.61
06/30/93 51655.77 39275.18
07/31/93 52225.61 39118.08
08/31/93 55296.83 40600.65
09/30/93 55896.28 40288.03
10/31/93 55933.28 41121.99
11/30/93 54090.55 40731.33
12/31/93 55706.10 41224.18
01/31/94 57907.61 42625.80
02/28/94 57483.03 41466.38
03/31/94 54817.23 39658.45
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Magellan
Fund on March 31, 1984, and paid a 3% sales charge. As the chart shows, by
March 31, 1994, the value of your investment would have grown to $54,817 -
a 448.17% 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 $39,663 - a 296.63% 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
A sharp correction at the end of
the period dampened returns for
U.S. stock investors during the 12
months ended March 31, 1994.
Low interest rates, low inflation,
and a strengthening economy
fueled strong stock market
performance from April 1993
through January 1994. However,
on February 4, the Federal
Reserve Board raised short-term
interest rates. That triggered fear
of further rate hikes, which sent
the stock market reeling; the
Standard & Poor's 500 stock
index fell more than 4% in March
alone. For the year ended March
31, the S&P 500 had a total
return of 1.47%, well below its
long-term average annual return
of about 10%. Continued poor
performance from consumer
non-durable stocks - including
those of most consumer
products, retail, tobacco, and
drug companies - dragged
down the index. Market leaders
included technology and
economically sensitive stocks
(known as cyclicals) like autos,
heavy machinery, and precious
metals. Cyclicals led the Dow
Jones Industrial Average - an
index of 30 blue chip stocks - to
a return of 8.79% for the year.
The NASDAQ Composite Index
- - - which tracks over-the-counter
stocks - was up 7.73%.
Although many foreign markets
also suffered corrections in the
first quarter of 1994, the Morgan
Stanley EAFE (Europe, Australia,
Far East) index rose 22.51% for
the year. The Morgan Stanley
Emerging Markets Index was up
49.30%.
An interview with Jeffrey Vinik, Portfolio Manager of
Fidelity Magellan Fund
Q. JEFF, WHAT KIND OF RESULTS HAVE YOU ACHIEVED OVER THE PAST YEAR?
A. Despite the sharp downturn in the stock market during the first quarter
of 1994, the fund outdistanced its peers by a substantial margin. Its total
return for the 12 months ended March 31, 1994 was 12.94%. The average
growth fund tracked by Lipper Analytical Services returned 3.79% during the
same period.
Q. THE MARKET'S SLIDE IN FEBRUARY AND MARCH WAS ENOUGH TO RATTLE NOVICE AND
VETERAN INVESTORS ALIKE. WHAT'S YOUR VIEW?
A. It can be nerve-racking to watch stock prices plunge for several days or
even weeks in a row. Valuations - stock prices relative to other measures
such as earnings and dividends - were so high by the end of January, it
didn't take much for skittish investors to sell. But regardless of whether
this recent fall turns out to be a short-term correction or the start of a
longer market downturn - and I believe it's the former - I saw it as a
buying opportunity that I couldn't pass up. Despite periodic market drops,
stocks have proven to be the best returning investments over long periods
of time.
Q. WHAT WERE YOU BUYING?
A. I bought many of my favorite stocks at prices 10 to 20% lower than they
were a month earlier. That buying activity reduced the fund's cash position
from 8.4% at the end of February to 2.4% by March 31. I focused on the two
large groups that have fueled the fund's performance over the past six
months, and which I expect to emphasize over the next two to five years:
cyclical stocks - those that usually rise and fall with the economy - and
technology.
Q. LET'S START WITH CYCLICALS. WHERE DID YOU FIND OPPORTUNITIES?
A. Cyclicals that made strong gains cut across several of the fund's
sectors. Historically, these stocks perform well when the economy improves,
but I don't like to buy them too early. That's because there's usually a
lag from when the economy starts to rebound to when these companies show
improved earnings outlooks. For example, the stock of Caterpillar - the
earth moving equipment manufacturer - doubled over the last six months,
which helped the fund. However, I waited to make Caterpillar one of the
fund's top ten investments until I felt more confident about the company's
potential to grow earnings over the next few years. And even though
Caterpillar's stock had already risen quite a bit, it was still
attractively valued because the company's earnings growth had kept pace.
Other cyclicals that boosted the fund's performance included the Big Three
U.S. auto makers: Chrysler, Ford and General Motors; auto and truck parts
manufacturers Dana and Echlin; and railroads such as Burlington Northern,
CSX and Santa Fe Pacific. Again, despite their recent strong performance, I
like the business prospects of many of these companies going forward.
Q. WHY?
A. Because I think we're in the early stages of a U.S. manufacturing boom
that could last through the end of the decade. Although the recent cost
cutting by manufacturers has been painful, it has put them in a much better
position to compete globally. I believe the United States now has the
lowest labor rates, lowest capital costs and highest productivity of any
nation in the western world. Many companies have increased productivity
lately by spending more money on technology, which was the fund's second
major area of emphasis over the past year and 24% of its investments on
March 31.
Q. SPEAKING OF TECHNOLOGY, SIX MONTHS AGO YOU TOLD US YOU'RE A LONG-TERM
BELIEVER IN SEMICONDUCTOR STOCKS. HAS THAT CHANGED?
A. Not at all. After their prices corrected last fall, the stocks of
several chip makers began rising again, and provided the fund with strong
returns. U.S. semiconductor manufacturers appear to be leading their
Japanese rivals in developing proprietary products - those that fill a
specific need. For example, Texas Instruments supplies a unique product
called a digital signal processor that many cellular phone manufacturers
purchase. U.S. semiconductor companies that make these proprietary products
face less competition and usually have higher profit margins than many of
their foreign counterparts.
Q. AND CHIP MANUFACTURER INTEL WAS THE FUND'S LARGEST INVESTMENT AT THE END
OF MARCH...
A. Although Intel's stock has remained pretty flat over the past six
months, I'm looking for better performance going forward. I believe the
company's new microprocessor - the Pentium - stands alone in its
capabilities, and could boost the company's earnings. Motorola, on the
other hand, did have a strong last 12 months. The beauty of Motorola is
that its wireless communications technology, as well as its semiconductor
business, has experienced strong, top-line growth. The demand for
semiconductors has risen in step with the boom in personal computers, which
drove the performance of many of the fund's other technology stocks over
the past year.
Q. WHAT WERE SOME EXAMPLES?
A. Compaq emerged as the premier low-cost producer of personal computers,
and its stock rocketed. In addition, IBM began to turn its business around
after a long slide from its Wall Street glory days. The company showed it
was serious about cutting costs, and experienced improving demand for its
products. IBM's stock price rose steadily through the fall before stumbling
a bit in early 1994. Other stocks that benefited from the surge in PC sales
included networking equipment manufacturers Cisco and Cabletron, software
companies such as Lotus Development, and disc drive producers Quantum and
Seagate Technologies.
Q. YOU REDUCED THE FUND'S ENERGY STAKE FROM 15.9% AT THE END OF SEPTEMBER
TO 9.2% BY MARCH 31. WHAT HAPPENED?
A. Energy stocks were solid performers during the first six months of the
period, but dropped off sharply as oil prices fell in the late fall. Energy
service companies were hit the hardest, and these stocks were my biggest
disappointment during the period. A year ago, I thought an increase in
drilling would help the earnings of companies like Baker-Hughes,
Halliburton and Schlumberger. Instead, drilling activity fell and so did
the stocks. Although I've sold most of the energy service investments, I'm
still upbeat about natural gas stocks. The supply and demand equation for
these companies looks good going forward. I'm focusing on those that have
fast-growing earnings, low cost structures and reasonable stock valuations.
Burlington Resources and Unocal were among the fund's top 20 investments at
the end of March.
Q. DO YOU THINK YOUR STRATEGY WILL CHANGE OVER THE NEXT SIX MONTHS?
A. I'm sure I'll tweak it here and there, but my overall game plan
shouldn't change much. After almost two years at the helm, I think I've
positioned Magellan for long-term growth. I don't know whether the market
will go up or down over the next several months, but with stock valuations
still high, I expect more volatility than we saw in 1993. That said, I do
believe that good stock selection can produce solid long-term gains in the
U.S. stock market. The key, again, is picking the right companies. I like
to think of Wall Street as a market of stocks rather than a stock market.
I'll focus on companies with strong earnings growth. And I think over the
next three to five years, many of those companies may emerge from the
cyclical and technology sectors. Because their prices have risen lately,
these stocks may correct harder than the overall market in a downturn. But
cyclical and technology companies are now leading the U.S. economy, and I
believe are positioned for long-term leadership of the U.S. stock market.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing in
stocks with growth potential
START DATE: May 2, 1963
SIZE: as of March 31, 1994,
over $33 billion
MANAGER: Jeff Vinik, since
July 1992; manager, Fidelity
Growth & Income
Portfolio, 1990-1992; Fidelity
Contrafund, 1989-1990;
securities analyst,
1986-1989; joined Fidelity in
1986
(checkmark)
JEFF VINIK ON THE IMPORTANCE OF
GOOD STOCK PICKING IN A
VOLATILE MARKET:
"History can teach us well. If
you look closely at how
certain stocks fared after the
market crash of 1987, you
see a pattern develop. IBM's
stock price is now half of what
it was just after the crash.
Digital Equipment's stock is
selling at about a third of its
post-crash price. Yet the
stocks of Home Depot and
Wal-Mart not only bounced
back, but rose more than
five-fold after the crash. Why?
Because the crash didn't have
a long-term effect on the
stocks of companies with
strong earnings growth. My
point is, if companies such as
Caterpillar, General Motors,
or Motorola can increase their
earnings at a good clip over
the next few years, it'll make
little difference what the
overall market does next
week or next month. I'm
focusing on stocks that I think
can ride out short-term
market downturns to provide
long-term results."
(bullet) Over the last six months,
the fund mostly avoided
consumer non-durable stocks
- - - beverage, food, tobacco
and health-care companies -
all of which continued to lag the
overall market. Together, these
stocks made up over 20% of
the S&P 500 index, but
only 4.3% of the fund.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF MARCH 31, 1994 March 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Intel Corp. 2.6 1.4
Motorola, Inc. 2.2 2.2
CSX Corp. 1.3 1.0
Caterpillar, Inc. 1.3 0.3
Columbia/HCA Healthcare 1.2 0.9
Burlington Resources, Inc. 1.2 1.5
Texas instruments, Inc. 1.1 1.8
Entergy Corp. 1.1 0.7
IBM Corp. 1.0 0.0
Federal National Mortgage 1.0 0.4
Association
TOP FIVE INDUSTRIES AS OF MARCH 31, 1994March 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Technology 24.0 22.2
Energy 9.3 15.9
Durables 8.1 7.5
Retail 7.0 5.9
Utilities 6.7 7.9
ASSET ALLOCATION
AS OF MARCH 31, 1994 AS OF SEPTEMBER 30, 1993
Row: 1, Col: 1, Value: 3.1
Row: 1, Col: 2, Value: 7.3
Row: 1, Col: 3, Value: 89.59999999999999
Stocks 93.9%
Bonds 2.6%
Short-term and
other investments 3.5%
Stocks 89.6%
Bonds 7.3%
Short-term and
other investments 3.1%
Row: 1, Col: 1, Value: 3.5
Row: 1, Col: 2, Value: 2.6
Row: 1, Col: 3, Value: 93.90000000000001
INVESTMENTS MARCH 31, 1994
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 89.1%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 0.1%
Precision Castparts Corp. 162,700 $ 5,471 74018910
Rockwell International Corp. 157,100 6,245 77434710
Sturm Ruger & Co., Inc. 105,300 3,133 86415910
Sundstrand Corp. 122,700 5,537 86732310
20,386
BASIC INDUSTRIES - 3.7%
CHEMICALS & PLASTICS - 1.0%
Albemarle Corp. (a) 689,900 10,176 01265310
Atlantis Group, Inc. (Trivest/Winston)(a)(g) 77,269 744 04914794
Cabot Corp. (f) 1,336,100 72,149 12705510
Eastman Chemical Co. 175,650 7,070 27743210
Engelhard Corp. 1,360,800 37,762 29284510
Fuller (H.B.)Co. 10,000 358 35969410
Hanna (M.A.)Co. 72,700 2,626 41052210
Lubrizol Corp. 1,655,800 57,125 54927110
Monsanto Co. 213,300 16,584 61166210
Morton International, Inc. 737,900 73,698 61933110
Myers Industries, Inc. 54,900 1,119 62846410
Olin Corp. 17,600 836 68066520
PPG Industries, Inc. 364,800 27,132 69350610
Praxair, Inc. 4,400 76 74005P10
Shin-Etsu Chemical Co. Ltd. 735,000 13,748 82499210
321,203
IRON & STEEL - 1.4%
AK Steel Holdings Corp. 1,000,000 23,500 00154710
Allegheny Ludlum Industries, Inc. 1,237,000 22,884 01690010
Bethlehem Steel Corp. (a) 2,973,600 59,472 08750910
Birmingham Steel Corp. 607,400 17,311 09125010
Carpenter Technology Corp. 109,500 6,721 14428510
Cleveland Cliffs, Inc. 40,700 1,755 18589610
Commercial Metals Co. 409,666 9,730 20172310
Inland Steel Industries, Inc. (a) 1,280,100 38,563 45747210
LTV Corp. (a) 3,301,581 49,524 50192110
LTV Corp. (warrants)(a) 1,013,857 4,055 50192112
Lukens, Inc. 10,150 316 54986610
Mueller Industries, Inc. (a)(f) 878,900 28,235 62475610
Nippon Steel 1,878,000 5,891 65499110
Nucor Corp. 2,013,300 122,056 67034610
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
IRON & STEEL - CONTINUED
Oregon Steel Mills, Inc. 855,800 $ 19,683 68607910
USX-U.S. Steel Group 1,346,400 49,985 90337T10
Wheeling Pittsburgh Corp. (a) 1,156,100 17,920 96314210
477,601
METALS & MINING - 0.6%
Alcan Aluminium Ltd. 1,924,400 42,594 01371610
Aluminum Co. of America 630,600 45,167 02224910
Cyprus Amax Minerals Co. 1,158,550 33,453 23280910
Inco Ltd. 1,727,900 42,964 45325840
Minorco SA ADR 920,400 18,638 60434020
Reynolds Metals Co. 226,000 10,368 76176310
193,184
PACKAGING & CONTAINERS - 0.0%
Owens-Illinois, Inc. (a) 736,000 8,188 69076840
PAPER & FOREST PRODUCTS - 0.7%
Crown Packaging Holdings Ltd. (warrants) (a)(h) 5,000 200 22844311
Georgia-Pacific Corp. 881,000 56,384 37329810
Longview Fibre Co. 685,100 12,332 54321310
Rayonier, Inc. (a) 320,800 8,982 75490710
Temple-Inland, Inc. 110,100 5,037 87986810
Weyerhaeuser Co. 2,746,000 118,765 96216610
Willamette Industries, Inc. 537,000 25,508 96913310
227,208
TOTAL BASIC INDUSTRIES 1,227,384
CONGLOMERATES - 1.7%
Allied-Signal, Inc. 1,464,800 53,648 01951210
Harris Corp. (f) 2,309,100 108,816 41387510
ITT Corp. 2,897,600 248,469 45067910
Lancaster Colony Corp. 8,200 355 51384710
Mark IV Industries, Inc. (f) 2,984,534 54,841 57038710
Standex International Corp. 561,600 15,795 85423110
Suncor, Inc. (a) 951,800 20,981 86722910
Textron, Inc. 265,200 14,321 88320310
Tyco Laboratories, Inc. 406,000 20,249 90212010
United Technologies Corp. 698,200 43,376 91301710
580,851
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - 3.3%
BUILDING MATERIALS - 1.7%
Adience, Inc. (a) 251,837 $ 252 00690510
Armstrong World Industries, Inc. (f) 2,427,600 131,090 04247610
Carlisle Companies, Inc. 389,000 12,448 14233910
Lafarge Corp. 2,782,400 59,822 50586210
Medusa Corp. (f) 1,084,050 30,082 58507230
National Gypsum Co. (a)(f) 1,399,489 64,376 63631710
Premdor, Inc. (a)(f) 3,441,600 39,797 74046P10
Southdown, Inc. (a)(f) 897,700 23,116 84129710
Tecumseh Products Co. (f) 920,000 44,505 87889520
Texas Industries, Inc. (f) 776,500 29,216 88249110
USG Corp. (a)(f) 4,113,800 124,957 90329340
United Dominion Industries Ltd 797,000 15,552 90991410
575,213
CONSTRUCTION - 0.9%
Centex Corp. (f) 1,974,100 60,950 15231210
Clayton Homes, Inc. (a) 1,245,800 26,318 18419010
Kaufman & Broad Home Corp. 285,900 5,647 48616810
Lennar Corp. (f) 939,200 29,115 52605710
Morrison-Knudsen Corp. 1,281,600 34,763 61844710
Oakwood Homes Corp. (f) 1,609,400 33,596 67409810
Pulte Corp. (f) 2,740,700 79,480 74586710
Toll Brothers, Inc. (a)(f) 2,158,800 29,953 88947810
299,822
ENGINEERING - 0.7%
Fluor Corp. 2,633,700 131,685 34386110
Foster Wheeler Corp. (f) 2,305,400 92,216 35024410
Glenayre Technologies, Inc. 303,500 11,230 37789910
235,131
REAL ESTATE - 0.0%
Castle & Cooke Homes, Inc. (a) 346,300 4,545 14842610
Hovnanian Enterprises, Inc. (a) 57,500 618 44248720
5,163
TOTAL CONSTRUCTION & REAL ESTATE 1,115,329
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - 7.6%
AUTOS, TIRES, & ACCESSORIES - 4.7%
Automotive Industries Holding, Inc. (a) 110,000 $ 3,300 05329E10
Breed Technologies, Inc. (a) 685,800 22,546 10670210
Bridgestone Corp. 1,617,000 23,629 10844110
Chrysler Corp. 1,911,300 98,671 17119610
Cooper Tire & Rubber Co. 1,462,200 37,286 21683110
Cummins Engine Co., Inc. 194,900 9,599 23102110
Dana Corp. 1,981,200 113,424 23581110
Danaher Corp. 632,900 23,496 23585110
Eaton Corp. 1,000,200 57,887 27805810
Echlin, Inc. (f) 4,468,500 131,821 27874910
Federal-Mogul Corp. 386,400 11,399 31354910
Ford Motor Co. 1,979,300 116,284 34537010
General Motors Corp. 3,383,100 182,687 37044210
Goodyear Tire & Rubber Co. 6,573,800 266,239 38255010
Hayes Wheels International, Inc. 354,400 9,657 42080410
Honda Motor Co. Ltd. 989,000 15,897 43812810
Johnson Controls, Inc. 623,700 34,304 47836610
Magna International, Inc. 1,456,700 68,432 55922240
Mascotech, Inc. 1,194,400 24,485 57467010
Mitsubishi Motors Corp. 918,000 7,682 60899692
Modine Manufacturing Co. 568,500 14,639 60782810
NACCO Industries, Inc. (f) 472,646 23,869 62957910
Nissan Motor Co. Ltd. Ord. 2,034,000 16,248 65474491
Pep Boys-Manny, Moe & Jack 296,300 8,370 71327810
Smith (A.O.)Corp. (f) 1,154,300 37,226 83186520
Snap-on Tools Corp. 340,000 13,600 83303410
Standard Products Co. 652,850 21,299 85383610
Superior Industries International, Inc. 225,300 7,857 86816810
Suzuki Motor Corp. 1,152,000 14,028 86958592
TRW, Inc. 1,211,400 82,981 87264910
Toyota Motor Corporation 2,131,000 40,897 89399999
Walbro Corp. (f) 847,100 23,719 93115410
1,563,458
CONSUMER ELECTRONICS - 1.0%
Matsushita Electric Industrial Co. Ltd. 2,254,000 37,329 57687910
Maytag Co. 8,100 150 57859210
Sharp Corp. 1,746,000 28,065 81989991
Sony Corp. 728,000 41,489 83569999
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
CONSUMER ELECTRONICS - CONTINUED
Sunbeam-Oster, Inc. 963,500 $ 17,825 86707110
Toro Co. 265,500 6,969 89109210
Whirlpool Corp. 3,218,000 195,494 96332010
327,321
HOME FURNISHINGS - 0.5%
Ethan Allen Interiors, Inc. (a) 236,500 6,149 29760210
HON Industries, Inc. 379,800 12,628 43809210
Heilig-Meyers Co. 446,500 13,842 42289310
Interco, Inc. (a) 956,900 13,516 45850710
La-Z Boy Chair Co. (f) 962,800 32,374 50533610
Leggett & Platt, Inc. 1,396,800 61,110 52466010
Levitz Furniture, Inc. (a) 380,300 5,847 52748210
Miller (Herman), Inc. 525,500 14,451 60054410
159,917
TEXTILES & APPAREL - 1.4%
Burlington Industries, Inc. 472,400 7,145 12169310
Fruit of the Loom, Inc. (a) 1,992,900 60,285 35941610
Haggar Corp. 378,000 13,136 40517310
Jones Apparel Group, Inc. (a)(f) 1,295,300 40,964 48007410
Kellwood Co. 866,800 20,912 48804410
Liz Claiborne, Inc. 2,073,700 48,991 53932010
Nine West Group, Inc. (a)(f) 2,886,600 86,237 65440D10
Oxford Industries, Inc. 125,300 3,853 69149730
Phillips-Van Heusen Corp. 618,500 21,570 71859210
Russell Corp. 135,800 3,853 78235210
Shaw Industries, Inc. 1,951,700 39,766 82028610
Springs Industries, Inc. (f) 586,100 20,220 85178310
Stride Rite Corp. 1,192,200 17,585 86331410
Tommy Hilfiger (a)(f) 1,279,400 45,898 89299B92
VF Corp. 93,900 4,695 91820410
Westpoint Stevens, Inc. (a) 1,286,100 21,221 96123810
456,331
TOTAL DURABLES 2,507,027
ENERGY - 9.2%
COAL - 0.1%
MAPCO, Inc. 646,300 38,536 56509710
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
ENERGY SERVICES - 1.6%
Baker-Hughes, Inc. 3,649,600 $ 64,780 05722410
Dresser Industries, Inc. 1,990,540 42,299 26159710
Energy Service, Inc. (a)(f) 17,784,700 64,470 29271910
Global Marine, Inc. (a) 5,811,600 22,520 37935240
Halliburton Co. 1,034,700 30,136 40621610
Helmerich & Payne, Inc. 542,500 14,105 42345210
Nabors Industries, Inc. (a)(f) 4,934,000 32,688 62956810
Noble Drilling Corp. (a)(f) 4,172,200 28,162 65504210
Oceaneering International, Inc. (a) 54,700 670 67523210
Parker Drilling Co. (a)(f) 5,499,200 29,558 70108110
Reading & Bates Corp. (a)(f) 5,553,293 31,237 75528180
Rowan Companies, Inc. (a) 3,830,600 26,814 77938210
Schlumberger Ltd. 697,600 36,886 80685710
Sonat Offshore Drilling, Inc. 796,000 13,433 83542010
Tidewater, Inc. (f) 4,214,300 82,179 88642310
Weatherford International, Inc. (a) 1,984,900 16,624 94707610
536,561
OIL & GAS - 7.5%
Amerada Hess Corp. 1,111,400 49,735 02355110
Anadarko Petroleum Corp. (f) 3,092,400 142,250 03251110
Anderson Exploration Ltd. (a)(f) 1,574,500 38,974 03390110
Apache Corp. (f) 4,772,300 110,359 03741110
Ashland Oil, Inc. 285,500 11,634 04454010
British Petroleum PLC:
ADR 3,084,200 189,293 11088940
Ord. 15,090,871 78,356 11088910
Burlington Resources, Inc. (f) 9,106,200 387,013 12201410
Canada Occidental Petroleum Ltd. 1,557,500 30,815 13642010
Canadian Natural Resources Ltd. (a)(f) 3,714,700 51,009 13638510
Chauvco Resources Ltd. (a) 1,830,700 25,635 16260010
Devon Energy Corp. (f) 1,592,100 28,260 25179910
Diamond Shamrock R&M, Inc. (f) 1,627,400 44,754 25274710
Enron Oil & Gas Co. 1,406,600 60,132 29356210
Horsham Corp. 1,871,900 26,043 44090710
Kelley Oil & Gas Partners, Ltd. 858,700 7,836 48773610
Kerr-McGee Corp. 1,579,300 65,541 49238610
Louisiana Land & Exploration Co. 669,200 24,175 54626810
Mesa, Inc. (a)(f) 2,215,134 12,737 59091110
Mitchell Energy & Development Corp. (f) 1,263,800 22,590 60659220
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Murphy Oil Corp. 1,320,400 $ 52,816 62671710
Newfield Exploration Co. (a) 220,500 4,686 65129010
Noble Affiliates, Inc. (f) 3,346,800 79,486 65489410
Northstar Energy Corp. (a)(f) 1,288,600 24,214 66703R10
Nuevo Energy Corporation (a) 438,600 8,443 67050910
Pancanadian Petroleum Ltd. 602,500 17,527 69890020
Parker & Parsley Petroleum Co. (f) 2,655,300 56,757 70101810
Petro-Canada 2,689,500 26,484 71644E10
Phillips Petroleum Co. 1,007,000 26,811 71850710
Poco Petroleums Ltd. 3,656,200 25,764 73036110
Pogo Producing Co. (a)(f) 3,210,800 52,978 73044810
Renaissance Energy Ltd. (a)(f) 7,786,000 156,153 75966610
San Juan Basin Royalty Trust (UBI)(f) 3,566,900 29,427 79824110
Snyder Oil Corp. (f) 2,302,400 44,897 83348210
Sun Company, Inc. 434,800 14,077 86676210
Talisman Energy Inc. (a) 398,600 8,534 87425E10
Tarragon Oil & Gas Ltd. (a) 231,900 2,640 87629E20
Tosco Corp. (f) 2,590,000 77,700 89149030
Triton Energy Corp. (a) 1,610,400 44,085 89675010
Ultramar Corporation 741,900 19,289 90391210
Unocal Corp. 11,278,100 284,772 91528910
Vintage Petroleum, Inc. (f) 1,255,200 23,535 92746010
2,488,216
TOTAL ENERGY 3,063,313
FINANCE - 6.1%
BANKS - 0.3%
Advanta Corp. 398,700 12,559 00794210
Bank of New York Co., Inc. 439,700 22,425 06405710
Citicorp (a) 301,587 11,310 17303410
Fleet Financial Group, Inc. 400,000 14,050 33891510
Republic New York Corp. 257,400 12,387 76071910
Signet Banking Corp. 599,900 23,696 82668110
96,427
CREDIT & OTHER FINANCE - 0.6%
Dean Witter Discover & Co. 1,874,228 61,147 24240V10
First USA, Inc. 1,520,400 53,594 33743H10
Household International, Inc. 1,252,940 37,118 44181510
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - CONTINUED
Mercury Finance Co. 287,900 $ 4,822 58939510
MBNA Corp. 1,017,200 21,488 55262L10
Non-Perform Mortgage Loan Trust (a) 218,530 15,516 65599D22
193,685
FEDERAL SPONSORED CREDIT - 1.6%
Federal Home Loan Mortgage Corporation 3,754,500 190,541 31340030
Federal National Mortgage Association 4,167,900 324,054 31358610
514,595
INSURANCE - 2.2%
AFLAC, Inc. 145,300 4,468 00105510
Aetna Life & Casualty Co. 810,500 43,058 00814010
Allmerica Property & Casualty Companies 2,127,400 38,293 01975T10
Allstate Corp. 1,229,200 29,501 02000210
American International Group, Inc. 1,654,100 139,151 02687410
CIGNA Corp. 538,700 31,985 12550910
Chubb Corp. (The) 188,100 13,755 17123210
Equitable Iowa Companies 158,600 5,353 29451030
Frontier Insurance Group, Inc. 87,500 3,806 35908110
General Re Corp. 1,015,500 109,039 37056310
HealthCare COMPARE Corp. (a) 604,500 12,166 42192810
Jefferson Pilot Corp. 92,700 4,368 47507010
Lincoln National Corp. 996,100 40,591 53418710
MBIA, Inc. 199,300 10,887 55262C10
Mercury General Corp. 75,400 2,036 58940010
Mutual Risk Management Ltd. 383,800 9,451 62835110
Progressive Corp. (Ohio) 1,097,600 31,968 74331510
SAFECO Corp. 988,200 52,251 78642910
St. Paul Companies, Inc. (The) 268,500 20,876 79286010
SunAmerica, Inc. 272,100 9,524 86693010
Tokio Marine & Fire Insurance Co. Ltd. (The) 550,000 6,590 88909099
Travelers, Inc. (The) 1,442,864 50,681 89419010
UNUM Corp. 128,500 6,778 90319210
USF&G Corp. 1,716,900 22,534 90329010
USLIFE Corp. 807,200 31,178 91731810
Zenith National Insurance Corp. 355,800 7,427 98939010
737,715
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SAVINGS & LOANS - 0.2%
Coast Savings Financial, Inc. (a)(f) 978,600 $ 13,578 19039M10
FirstFed Michigan Corp. (f) 1,165,050 26,214 33761R10
GP Financial Corp. (a) 1,570,500 29,054 36193510
Standard Federal Bank 420,500 11,774 85338910
80,620
SECURITIES INDUSTRY - 1.2%
Alex. Brown, Inc. 593,400 14,316 01390210
Bear Stearns Companies, Inc. 720,965 14,059 07390210
Daiwa Securities 894,000 14,283 23499010
Edwards (A.G.), Inc. 829,300 14,824 28176010
Franklin Resources, Inc. 2,313,600 93,990 35461310
Merrill Lynch & Co., Inc. 1,774,400 66,096 59018810
Morgan Stanley Group, Inc. 264,600 16,934 61744610
Nikko Securities 1,851,000 22,360 65399010
Nomura Securities Co. Ltd. 2,015,000 42,204 65536130
PaineWebber Group, Inc. 2,539,300 42,851 69562910
Price (T. Rowe)Associates, Inc. 745,600 20,877 74147710
Schwab (Charles)Corp. 105,700 2,841 80851310
Yamaichi Securities 2,662,000 22,017 98499210
387,652
TOTAL FINANCE 2,010,694
HEALTH - 3.2%
DRUGS & PHARMACEUTICALS - 0.0%
Biocraft Laboratories, Inc. 244,000 3,721 09058710
Nature's Bounty, Inc. (a) 469,000 9,849 63901730
13,570
MEDICAL EQUIPMENT & SUPPLIES - 1.0%
Cardinal Health, Inc. 727,700 33,474 14149Y10
Cordis Corp. (a)(f) 1,467,300 61,627 21852510
McKesson Corp. (f) 3,704,535 220,420 58155610
Owens & Minor, Inc. 191,100 4,348 69073010
Sofamor/Danek Group, Inc. (a) 200 4 83400510
319,873
MEDICAL FACILITIES MANAGEMENT - 2.2%
Caremark International, Inc. 886,200 16,505 14170410
Columbia/HCA Healthcare Corp. (f) 9,879,997 397,670 19767710
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - CONTINUED
Humana, Inc. 4,312,000 $ 80,311 44485910
Medical Care America, Inc. (a) 822,800 17,485 58450C10
National Medical Enterprises, Inc. 1,695,700 27,343 63688610
Surgical Care Affiliates, Inc. 211,500 3,331 86881810
U.S. Healthcare, Inc. 3,493,550 143,236 91191010
United HealthCare Corp. 1,208,600 51,668 91058110
Universal Health Services, Inc (a) 247,100 5,807 91390310
743,356
TOTAL HEALTH 1,076,799
INDUSTRIAL MACHINERY & EQUIPMENT - 5.0%
ELECTRICAL EQUIPMENT - 1.7%
American Power Conversion Corp. (a) 1,731,500 44,370 02906610
Amphenol Corp. (a)(f) 3,142,300 45,563 03209420
Antec Corp. (a) 500,000 9,937 03664P10
Asea AB Free shares
Series B 24,900 1,867 04365510
Series A 97,200 7,275 04365590
Corning, Inc. 1,027,000 33,249 21935010
Duracell International, Inc. 717,600 28,525 26633L10
General Electric Co. 498,000 49,613 36960410
General Signal Corp. 1,081,400 35,686 37083810
Grainger (W.W.), Inc. 185,400 11,773 38480210
Itel Corp. (a)(f) 2,989,600 74,740 46564210
Murata Manufacturing Co. Ord. 50,000 2,362 62699110
Oak Industries, Inc. (a)(f) 1,309,000 23,071 67140050
Philips Electronics (a) 2,581,000 70,191 71833799
Philips NV (a) 2,964,000 80,028 71833750
Scientific-Atlanta, Inc. 1,677,950 46,144 80865510
Vicor Corporation (a) 534,900 13,907 92581510
578,301
INDUSTRIAL MACHINERY & EQUIPMENT - 3.1%
Briggs & Stratton Corp. (f) 869,200 73,013 10904310
Caterpillar, Inc. 3,773,600 424,058 14912310
Clark Equipment Co. (a) 784,400 46,476 18139610
Deere & Co. 1,789,900 150,352 24419910
Duriron Company, Inc. 336,150 5,799 26684910
Greenfield Industries, Inc. 280,000 5,880 39505810
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
IDEX Corp. (a) 466,300 $ 16,262 45167R10
Indresco, Inc. (a)(f) 2,096,800 28,307 45590510
Kennametal, Inc. 453,365 24,312 48917010
Mitsubishi Heavy Industry 824,000 5,226 60699310
Singer Company 230,700 7,930 82930F10
Stewart & Stevenson Services, Inc. 303,100 13,488 86034210
TRINOVA Corp. (f) 1,589,200 55,026 89667810
Tenneco, Inc. 561,100 29,598 88037010
Thermadyne Holdings Corp. 3,687 48 88343510
Varity Corp. (a)(f) 3,498,700 146,508 92224R60
1,032,283
POLLUTION CONTROL - 0.2%
Attwoods PLC:
ADR 477,200 4,176 04987020
Ord. 2,669,000 4,751 04987010
Ogden Corp. 992,500 22,083 67634610
Sanifill, Inc. (a)(f) 790,800 17,002 80101810
48,012
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 1,658,596
MEDIA & LEISURE - 2.6%
BROADCASTING - 0.3%
CBS, Inc. 58,200 17,809 12484510
Capital Cities/ABC, Inc. 22,900 15,664 13985910
Great American Communication 340,489 5,363 38991210
Home Shopping Network, Inc. (a) 531,325 6,841 43735110
New World Communications Group 1,258,770 12,430 64927A20
Tokyo Broadcasting System 100,000 1,685 88739310
Viacom, Inc. (non-vtg.)(a) 1,035,600 27,443 92552430
87,235
ENTERTAINMENT - 0.3%
Carnival Cruise Lines, Inc. 492,900 21,872 14365810
Casino America, Inc. (a) 130,700 4,378 14757510
Cedar Fair LP (f) 1,100,900 37,018 15018510
GC Cos., Inc. (a) 71,090 2,417 36155Q10
Royal Carribean Cruises Ltd. 867,600 21,582 78015392
Spelling Entertainment Group, Inc. 1,413,400 14,487 84780710
101,754
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LEISURE DURABLES & TOYS - 1.0%
ARCTCO, Inc. 566,550 $ 14,022 03966510
Brunswick Corp. (f) 7,610,700 160,776 11704310
Fleetwood Enterprises, Inc. (f) 4,565,800 93,028 33909910
Mattel, Inc. 2,121,300 53,298 57708110
321,124
LODGING & GAMING - 0.5%
Bally Gaming International, Inc. 115,673 1,807 05873110
Bally Gaming International, Inc. (warrants)(a)(g) 225,000 1,294 05873194
Bally's Grand, Inc. (a) 326,944 3,841 05873J10
Bally's Grand, Inc. (warrants)(a) 61,691 262 05873J11
Boyd Gaming Corp. (a) 136,800 2,052 10330410
Caesars World, Inc. (a) 897,104 40,145 12769510
Hospitality Franchise Systems, Inc. (a) 646,700 35,569 44091210
International Game Technology Corp. 509,300 13,815 45990210
Mirage Resorts, Inc. (a) 462,700 9,717 60462E10
Promus Companies, Inc. (a) 677,300 26,669 74342A10
Showboat, Inc. (f) 1,492,150 25,553 82539010
WMS Industries, Inc. (a) 441,900 11,876 92929710
172,600
PUBLISHING - 0.4%
American Greetings Corp. 312,300 8,237 02637510
Banta Corp. 876,750 29,590 06682110
Central Newspapers, Inc. 435,200 11,696 15464710
Gannett Co., Inc. 212,400 11,178 36473010
Harcourt Gen. Inc. 320,100 10,603 41163G10
Lee Enterprises, Inc. 357,800 12,568 52376810
Media General, Inc. 112,100 2,494 58440410
New York Times Co. (The) 1,617,100 44,268 65011110
Times Mirror Co., Series A 400,900 12,478 88736010
143,112
RESTAURANTS - 0.1%
Buffets, Inc. (a) 704,800 15,329 11988210
McDonald's Corp. 114,500 6,512 58013510
21,841
TOTAL MEDIA & LEISURE 847,666
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - 1.1%
AGRICULTURE - 0.1%
Pioneer Hi-Bred International, Inc. 1,132,900 $ 37,102 72368610
BEVERAGES - 0.1%
Coca-Cola Enterprises, Inc. 26,500 460 19121910
Heileman G Brewing, Inc. unit, (g) 340 6,800 42288492
Snapple Beverage Corp. (a) 1,160,700 26,986 83303710
34,246
FOODS - 0.2%
Chiquita Brands International, Inc. (f) 2,571,800 43,399 17003210
Dean Foods Co. 32,400 895 24236110
Dole Food, Inc. 355,400 11,195 25660510
55,489
HOUSEHOLD PRODUCTS - 0.7%
Avon Products, Inc. 1,654,500 93,479 05430310
Paragon Trade Brands, Inc. (a) 538,600 15,821 69912K10
Premark International, Inc. (f) 1,790,300 128,902 74045910
238,202
TOTAL NONDURABLES 365,039
PRECIOUS METALS - 0.4%
American Barrick Resources Corp. 894,100 22,536 02451E10
Battle Mountain Gold Co. 754,900 9,059 07159310
Echo Bay Mines Ltd. 525,000 6,972 27875110
Homestake Mining Co. 1,627,500 36,619 43761410
Newmont Mining Corp. 324,400 18,612 65163910
Pegasus Gold, Inc. 1,168,900 23,232 70556K10
Placer Dome, Inc. 296,200 7,332 72590610
124,362
RETAIL & WHOLESALE - 6.9%
APPAREL STORES - 1.3%
AnnTaylor Stores Corp. (a) 94,000 3,008 03611510
Baker (J.), Inc. 209,500 4,190 05723210
Brown Group, Inc. (f) 1,059,100 38,790 11565710
Burlington Coat Factory Warehouse Corp. (a)(f) 2,624,625 66,272 12157910
Charming Shoppes, Inc. 283,300 3,435 16113310
Claire's Stores, Inc. (f) 1,502,100 28,352 17958410
Clothestime, Inc. (The)(a) 556,600 4,105 18909510
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
APPAREL STORES - CONTINUED
Dress Barn, Inc. (a)(f) 1,886,800 $ 22,642 26157010
Gap, Inc. 2,094,400 92,939 36476010
Gymboree Corp. (a) 284,500 12,518 40377710
Lamonts Apparel, Inc. (a) 143,486 215 51362820
Limited, Inc. (The) 2,575,800 53,770 53271610
Ross Stores, Inc. (a) 1,023,000 15,601 77829610
TJX Companies, Inc. 2,338,100 61,667 87254010
Talbots, Inc. 282,600 8,195 87416110
United States Shoe Corp. 1,520,200 25,843 91260510
441,542
DRUG STORES - 0.2%
Big B, Inc. 70,000 761 08889110
General Nutrition Companies, Inc. (a) 1,105,500 27,361 37047F10
Revco (D.S.), Inc. (a)(f) 3,185,294 52,159 76133910
80,281
GENERAL MERCHANDISE STORES - 2.4%
Carson Pirie Scott & Co. 919,800 14,487 14590310
Carter Hawley Hale Stores, Inc. (a) 501,100 6,264 14622730
Consolidated Stores Corp. (a)(f) 3,531,900 60,925 21014910
Federated Department Stores, Inc. (a) 3,442,231 75,729 31410J10
Hills Stores 129,293 2,537 43165992
Hudson Bay Co. Ord. (f) 3,169,300 67,571 44420410
Mac Frugals Bargains Close Outs, Inc. (a) 847,600 14,091 55415210
May Department Stores Co. (The) 1,757,200 73,143 57777810
Mercantile Stores Co., Inc. 221,600 8,476 58753310
Michaels Stores, Inc. (a) 207,100 8,491 59408710
Nordstrom, Inc. 1,085,300 43,141 65566410
Penney (J.C.)Co., Inc. 3,689,100 195,061 70816010
Price/Costco, Inc. 1,302,800 23,613 74143W10
Sears, Roebuck & Co. 4,878,300 209,767 81238710
803,296
GROCERY STORES - 0.8%
American Stores Co. 764,100 39,160 03009610
Food 4 Less Holdings, Inc. (warrants)(a) 1,169 35 34475311
Grand Union Capital Corp. (a) 6,979 4,676 40099B92
Grand Union Co. (warrants) 1,749 1,172 38653295
Hannaford Brothers Co. 458,000 10,763 41055010
Kroger Co. (The)(a) 2,746,100 65,563 50104410
Safeway, Inc. (a) 2,230,600 53,256 78651420
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
GROCERY STORES - CONTINUED
Starbucks Corp. (a) 419,500 $ 10,225 85524410
Stop & Shop Companies, Inc. (a) 1,491,100 36,346 86209910
Supervalu, Inc. 429,600 14,875 86853610
Winn-Dixie Stores, Inc. 210,800 11,568 97428010
247,639
RETAIL & WHOLESALE, MISCELLANEOUS - 2.2%
Best Buy Co., Inc. (a)(f) 1,461,000 93,321 08651610
CML Group, Inc. 2,372,900 39,449 12582010
Circuit City Stores, Inc. 2,292,700 45,567 17273710
Diagnostek, Inc. 179,700 3,145 25290010
Fingerhut Companies, Inc. 844,300 24,696 31786710
Gateway 2000, Inc. (a) 275,000 5,603 36783310
Hanover Direct, Inc. (a) 3,275,600 20,882 41078310
Lowe's Companies, Inc. (f) 9,272,000 299,022 54866110
Micro Warehouse, Inc. (a) 331,300 15,240 59501B10
Musicland Stores Corp. (a) 1,212,900 23,652 62758B10
Office Depot, Inc. (a) 313,200 10,923 67622010
Payless Cashways, Inc. (a)(f) 2,957,300 48,426 70437830
Sotheby's Holdings, Inc. 950,600 16,160 83589810
Spiegel, Inc. (f) 934,700 21,264 84845710
Staples, Inc. 265,400 6,668 85503010
Sun Television & Appliances, Inc 497,000 5,219 86688110
Waban, Inc. (a)(f) 2,926,300 53,771 92939410
733,008
TOTAL RETAIL & WHOLESALE 2,305,766
SERVICES - 1.9%
ADVERTISING - 0.5%
Foote Cone & Belding Communications, Inc. (f) 854,900 35,906
34487210
Omnicom Group, Inc. (f) 2,925,600 139,697 68191910
175,603
LEASING & RENTAL - 0.3%
GATX Corp. 616,700 25,901 36144810
Interpool, Inc. (a) 736,900 13,080 46062R10
PHH Corp. 175,000 6,213 69332010
Ryder Systems, Inc. 1,772,100 43,859 78354910
89,053
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - CONTINUED
PRINTING - 0.4%
Bowne & Co., Inc. 741,600 $ 16,686 10304310
Donnelley (R.R.)& Sons Co. 910,400 25,605 25786710
New England Business Service, Inc. 439,100 8,343 64387210
Reynolds & Reynolds Co. 1,716,900 37,343 76169510
Valassis Communications, Inc. 1,157,300 20,253 91886610
Wallace Computer Services, Inc. (f) 1,189,300 39,544 93227010
147,774
SERVICES - 0.7%
Manpower, Inc. (a) 1,470,600 27,941 56418H10
Olsten Corp. 155,000 4,979 68138510
Pittston Company Services Group (f) 4,339,100 96,545 72570110
Robert Half International, Inc. 643,900 19,719 77032310
Service Corp. International 2,930,300 73,990 81756510
223,174
TOTAL SERVICES 635,604
TECHNOLOGY - 23.6%
COMMUNICATIONS EQUIPMENT - 2.3%
Cabletron Systems, Inc. (a) 617,600 67,473 12692010
Cisco Systems, Inc. (a) 4,443,600 152,193 17275R10
DSC Communications Corp. (a) 2,383,400 119,766 23331110
Ericsson (L.M.)Telephone Co.:
Class B 169,300 7,287 29482120
Class B ADR 129,000 5,434 29482140
General Instrument Corp. (a) 2,047,000 97,233 37012110
Network General Corp. (a)(f) 1,080,900 19,321 64121010
Newbridge Networks Corp. (a) 245,800 13,427 65090110
Nokia AB Free shares 367,900 26,670 65599992
Tellabs, Inc. (a)(f) 1,548,500 84,780 87966410
U.S. Robotics, Inc. (a)(f) 954,700 31,744 91246610
Wellfleet Communications, Inc. (a) 944,300 66,573 94949710
3Com Corp. (a) 1,082,500 60,485 88553510
752,386
COMPUTER SERVICES & SOFTWARE - 2.7%
Adobe Systems, Inc. 680,000 16,490 00724F10
Autodesk, Inc. 418,400 24,267 05276910
CUC International, Inc. (a) 1,406,600 44,308 12654510
Cheyenne Software, Inc. (a) 566,850 14,596 16688810
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMMUNICATIONS EQUIPMENT - CONTINUED
Chipcom Corp. (a)(f) 585,960 $ 30,030 16961710
Compuware Corp. (a) 1,041,500 43,873 20563810
ECI Telecom Ltd. 1,717,100 39,493 26825810
Electronics for Imaging Incorporated (a) 356,100 5,252 28608210
Equifax Inc. 2,120,000 50,350 29442910
Informix Corp. (a) 100,400 2,083 45677910
Intelligent Electronics, Inc. (f) 2,855,200 71,380 45815710
LEGENT Corp. (a) 821,100 20,938 52465R10
Lotus Development Corp. (a)(f) 4,230,400 298,243 54570010
Oracle Systems Corp. (a) 2,708,300 87,004 68389X10
Recognition Equipment, Inc. (a)(f) 1,465,900 17,591 75623110
SafeCard Services, Inc. (f) 2,166,900 38,462 78642110
Shared Medical Systems Corp. 577,500 15,087 81948610
Sterling Software, Inc. (a)(f) 990,777 28,609 85954710
SunGard Data Systems, Inc. (a) 512,400 18,254 86736310
Sybase, Inc. (a) 811,700 36,527 87113010
902,837
COMPUTERS & OFFICE EQUIPMENT - 6.7%
ADAPTEC, Inc. (a)(f) 5,174,600 93,790 00651F10
AST Research, Inc. (a)(f) 1,978,100 42,035 00190710
Amdahl Corp. (f) 9,616,800 62,509 02390510
Apple Computer, Inc. 1,862,500 61,928 03783310
Canon, Inc. 2,371,000 37,419 13780199
Casio Computer Co. Ltd. Ord. 1,803,000 22,307 14761893
Comdisco, Inc. 1,484,900 28,770 20033610
Compaq Computer Corp. (a) 2,934,000 286,799 20449310
Conner Peripherals, Inc. (a)(f) 4,182,600 63,262 20810810
Creative Technologies, Corp. (a) 746,400 19,220 22599992
Dell Computer Corporation (a)(f) 2,737,100 69,112 24702510
Diebold, Inc. (f) 2,724,600 99,448 25365110
Digital Equipment Corp. (a) 1,311,500 38,689 25384910
EMC Corp. (a)(f) 11,413,900 226,851 26864810
Exabyte (a)(f) 1,497,200 28,634 30061510
Hewlett-Packard Co. 3,625,800 297,769 42823610
International Business Machines Corp. 6,209,700 338,429 45920010
Komag, Inc. (a)(f) 2,085,400 48,486 50045310
Madge NV (a) 50,000 713 55799522
Quantum Corp. (a)(f) 4,245,000 69,512 74790610
SCI Systems, Inc. (a) 966,100 15,458 78389010
Seagate Technology (a)(f) 4,883,700 113,546 81180410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Silicon Graphics, Inc. (a) 835,900 $ 19,957 82705610
Symbol Technologies, Inc. (a) 268,500 5,169 87150810
Tandem Computers, Inc. (a) 4,330,300 61,165 87537010
Tech Data Corp. (a) 316,800 11,484 87823710
Wang Labs, Inc. Delaware 765,000 11,475 93369N10
Western Digital Corp. (a)(f) 2,949,100 49,766 95810210
2,223,702
ELECTRONIC INSTRUMENTS - 1.3%
Analogic Corp. (a)(f) 1,235,400 18,840 03265720
Applied Materials, Inc. (a) 3,117,200 138,715 03822210
KLA Instruments Corp. (a) 1,121,400 40,090 48248010
Lam Research Corp. (a) 770,200 23,876 51280710
Novellus System, Inc. (a) 885,200 30,761 67000810
Tektronix, Inc. (f) 1,657,800 50,563 87913110
Teradyne, Inc. (a) 1,812,400 45,763 88077010
Varian Associates, Inc. (f) 2,181,000 74,154 92220410
422,762
ELECTRONICS - 10.6%
Advanced Micro Devices, Inc. (a)(f) 8,193,800 252,983 00790310
Altera Corp. (a) 292,200 9,350 02144110
Analog Devices, Inc. (a) 2,154,700 56,022 03265410
Arrow Electronics, Inc. (a) 1,498,800 56,018 04273510
Atmel Corp. (a)(f) 1,685,400 71,208 04951310
Augat, Inc. (a)(f) 1,899,620 37,992 05104210
Avnet, Inc. (f) 2,824,245 107,674 05380710
Berg Electronics Holdings Corp. (a)(h) 218,280 349 08372610
Cirrus Logic, Inc. (a)(f) 1,498,800 49,460 17275510
Cypress Semiconductor Corp. (f) 3,628,500 58,056 23280610
Cyrix Corp. (a) 330,900 9,182 23281510
Dallas Semiconductor Corp. (a)(f) 1,317,700 22,236 23520410
Hitachi, Ltd. 4,398,000 39,845 43357810
Integrated Device Technology, Inc. (a)(f) 1,942,900 49,301 45811810
Intel Corp. 12,721,100 858,674 45814010
International Rectifier Corp. (a) 1,016,200 16,132 46025410
Kent Electronics Corp. (a)(f) 336,800 9,009 49055310
LSI Logic Corp. (a)(f) 4,953,100 99,062 50216110
Linear Technology Corp. 248,600 10,503 53567810
Marshall Industries (a)(f) 1,701,400 42,322 57239310
Maxim Integrated Products, Inc. (a) 516,700 25,964 57772K10
Micron Technology, Inc. 1,882,500 157,189 59511210
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Motorola, Inc. 7,098,600 $ 718,733 62007610
National Semiconductor Corp. (a)(f) 9,189,180 192,973 63764010
Pioneer-Standard Electronics, Inc. (f) 977,863 22,246 72387710
Rohm Co. Ltd. (a) 454,000 17,249 77536110
Storage Technology Corp. (a) 1,877,700 61,025 86211120
Texas Instruments, Inc. (f) 4,881,900 377,127 88250810
Toshiba Corp. (a) 955,000 6,857 89149310
VLSI Technology, Inc. (a)(f) 3,453,000 48,774 91827010
Wyle Laboratories (f) 1,214,200 22,918 98305110
Zilog, Inc. (a) 179,800 5,978 98952410
Aiwa Co. Ltd. 696,000 17,358 00959999
3,529,769
PHOTOGRAPHIC EQUIPMENT - 0.0%
Eastman Kodak Co. 138,300 6,137 27746110
Fuji Photo Film Co. Ltd. 412,000 9,191 35958610
15,328
TOTAL TECHNOLOGY 7,846,784
TRANSPORTATION - 6.1%
AIR TRANSPORTATION - 0.2%
KLM Royal Dutch Airlines (a) 893,400 22,223 48251610
KLM Royal Dutch Airlines Ord. (a) 1,376,800 34,951 48251620
SkyWest, Inc. 31,500 1,095 83087910
58,269
RAILROADS - 4.6%
Burlington Northern, Inc. 893,700 53,175 12189710
CSX Corp. (f) 5,346,900 438,446 12640810
Canadian Pacific Ltd. Ord. 7,751,000 121,840 13644030
Chicago & North Western Holdings Corp. (a) 1,040,200 25,225 16715510
Conrail, Inc. 4,041,300 233,385 20836810
Illinois Central Corp., Series A 1,624,276 54,819 45184110
Kansas City Southern Industries, Inc. (f) 2,736,400 138,530 48517010
Norfolk Southern Corp. 2,149,500 138,911 65584410
Santa Fe Pacific Corp. (f) 11,692,900 266,013 80218310
Trinity Industries, Inc. 302,800 11,506 89652210
Union Pacific Corp. 746,500 42,364 90781810
1,524,214
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
SHIPPING - 0.2%
American President Companies Ltd. (f) 1,620,900 $ 39,509 02910310
Kirby Corp. (a) 851,600 18,097 49726610
57,606
TRUCKING & FREIGHT - 1.1%
Airborne Freight Corp. 716,900 24,912 00926610
Arkansas Best Corp. (f) 1,859,800 24,177 04079010
Consolidated Freightways, Inc. (a)(f) 2,063,000 54,154 20923710
Federal Express Corp. (a) 361,000 24,142 31330910
Landstar System, Inc. (a)(f) 777,200 17,487 51509810
MS Carriers, Inc. (f) 1,013,600 22,806 55353310
Roadway Services, Inc. 180,100 12,202 76974810
Rollins Truck Leasing Corp. 1,180,750 21,106 77574110
Swift Transportation Co., Inc. (a)(f) 1,224,000 32,130 87075610
TNT Freightways Corp. (f) 1,235,600 30,118 87259J10
Trimac Ltd. 131,500 1,651 89620810
Werner Enterprises, Inc. 660,000 18,728 95075510
XTRA Corp. (f) 1,688,000 69,841 98413810
Yellow Corp. 399,100 9,529 98550910
362,983
TOTAL TRANSPORTATION 2,003,072
UTILITIES - 6.6%
CELLULAR - 0.7%
Cencall Communications Corp. (a) 295,100 6,935 15129710
Century Telephone Enterprises, Inc. 32,400 749 15668610
IDB Communications Group, Inc. 1,748,640 28,634 44935510
Nextel Communications, Inc. (a) 1,024,800 40,223 65332V10
Pactel Corp. (a) 4,628,100 95,455 69525210
Qualcomm, Inc. 215,500 5,280 74752510
Vodafone Group PLC sponsored ADR 604,900 46,804 92857T10
224,080
ELECTRIC UTILITY - 2.2%
American Electric Power Co., Inc. 594,600 18,284 02553710
Entergy Corp. 11,126,500 353,266 29364G10
Illinois Power Co. 568,700 11,516 45209210
Niagara Mohawk Power Corp. 3,671,500 65,628 65352210
Pinnacle West Capital Corp. (f) 7,004,800 140,096 72348410
Public Service Co. of New Mexico (a) 2,059,400 27,030 74449910
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
ELECTRIC UTILITY -CONTINUED
Public Service Enterprise Group, Inc. 620,800 $ 17,305 74457310
Southern Co. 3,017,800 57,715 84258710
Union Electric Co. 768,600 27,093 90654810
717,933
GAS - 1.8%
Coastal Corp. (The) 1,624,000 49,532 19044110
Enron Corp. 2,272,000 69,296 29356110
Pacific Enterprises 1,451,800 29,399 69423210
Panhandle Eastern Corp. 1,194,500 25,085 69846210
Santa Fe Pacific Pipeline Partners, LP 524,900 18,765 80217710
Seagull Energy Corp. (a)(f) 2,421,174 57,503 81200710
Sonat, Inc. 561,200 15,573 83541510
Tejas Gas Corp. (Del.)(a) 256,200 12,810 87907510
TransCanada PipeLines Ltd. (f) 13,117,100 175,381 89352610
Westcoast Energy, Inc. (f) 5,741,000 95,950 95751D10
Williams Companies, Inc. 2,592,800 62,227 96945710
611,521
TELEPHONE SERVICES - 1.9%
ALC Communications Corp. (a) 230,500 7,664 00157530
Ameritech Corp. 1,174,000 44,759 03095410
Bell Atlantic Corp. 741,800 38,388 07785310
BellSouth Corp. 711,100 41,066 07986010
Comsat Corp. 1,679,400 43,874 20564D10
GTE Corp. 885,600 27,454 36232010
LCI International, Inc. (a) 418,700 16,015 50181310
LDDS Communications, Inc. (a) 927,370 22,257 50182L10
Rochester Telephone Corp. 920,400 39,577 77175810
Southwestern Bell Corp. 2,226,400 89,891 84533310
Sprint Corporation 5,782,400 198,047 85206110
U.S. West, Inc. 1,316,100 53,631 91288910
622,623
TOTAL UTILITIES 2,176,157
TOTAL COMMON STOCKS
(Cost $26,258,195) 29,564,829
PREFERRED STOCKS - 0.5%
SHARES VALUE (NOTE 1)
(000S)
CONVERTIBLE PREFERRED STOCKS - 0.3%
DURABLES - 0.2%
AUTOS, TIRES, & ACCESSORIES - 0.2%
Chrysler Corp., $4.625 (h) 378,200 $ 54,514 17119670
Federal Mogul Corp. $1.9375 (h) 95,000 8,550 31354920
63,064
FINANCE - 0.1%
BANKS - 0.1%
Citicorp $5.375 (h) 406,829 43,327 17303451
RETAIL & WHOLESALE - 0.0%
GENERAL MERCHANDISE STORES - 0.0%
Hills Stores, Series A 112,027 2,129 17303451
TECHNOLOGY - 0.0%
ELECTRONICS - 0.0%
National Semiconductor Corp. $3.25 (a) 64,800 5,184 63764050
TOTAL CONVERTIBLE PREFERRED STOCKS 113,704
NONCONVERTIBLE PREFERRED STOCKS - 0.2%
FINANCE - 0.0%
SAVINGS & LOANS - 0.0%
Dime Savings Bank of New York FSB 2,100 2,226 25432R20
Greater New York Savings Bank, Series 11% 234,000 6,552 39225020
8,778
TECHNOLOGY - 0.2%
COMMUNICATIONS EQUIPMENT - 0.2%
Nokia 764,800 55,724 65599910
ELECTRONICS - 0.0%
Berg Electronics Holding Corp. $3.4687 Series E (a) 94,143 2,448
08372640
TOTAL TECHNOLOGY 58,172
TOTAL NONCONVERTIBLE PREFERRED STOCKS 66,950
TOTAL PREFERRED STOCKS
(Cost $118,802) 180,654
CORPORATE BONDS - 2.1%
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
CONVERTIBLE BONDS - 0.5%
BASIC INDUSTRIES - 0.0%
PAPER & FOREST PRODUCTS - 0.0%
Repap Enterprise Corp.:
9%, 6/30/98 - CAD 12,900 $ 7,738 76026M9A
8 1/2%, 8/1/97 - $ 250 225 76026M9B
7,963
CONGLOMERATES - 0.0%
Polly Peck International PLC 7 1/4%, 1/4/05 (c) - 1,300 247 731991AA
DURABLES - 0.2%
AUTOS, TIRES, & ACCESSORIES - 0.1%
Magna Intenational, Inc. 10%, 5/1/01 (h) - 8,180 44,663 559222AC
CONSUMER ELECTRONICS - 0.1%
Whirlpool Corp. liquid yield option notes 0%,
5/14/11 Baa1 65,000 28,356 963320AJ
TOTAL DURABLES 73,019
FINANCE - 0.1%
BANKS - 0.1%
Bank of New York Co., Inc. 7 1/2%,
8/15/01 Baa1 8,500 11,836 064057AK
RETAIL & WHOLESALE - 0.0%
APPAREL STORES - 0.0%
Dylex Ltd., 9%, 8/15/00 - 140 89 267720AA
DRUG STORES - 0.0%
Big Boy, Inc. 6 1/2%, 3/15/03 B2 3,500 3,850 088891AA
TOTAL RETAIL & WHOLESALE 3,939
TECHNOLOGY - 0.2%
COMMUNICATIONS EQUIPMENT - 0.0%
Ericsson (L.M.)Telephone Co. 4 1/4%,
6/30/00 - 5,549 8,822 294821AA
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
CONVERTIBLE BONDS - CONTINUED
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - 0.2%
Data General Corp. 7 3/4%, 6/1/01 B3 $ 20,810 $ 18,729 237688AD
EMC Corp. 6 1/4%, 4/1/02 B2 8,000 51,710 268648AA
70,439
TOTAL TECHNOLOGY 79,261
TOTAL CONVERTIBLE BONDS 176,265
NONCONVERTIBLE BONDS - 1.6%
AEROSPACE & DEFENSE - 0.0%
AEROSPACE & DEFENSE - 0.0%
Fairchild Industries, Inc. 12 1/4%, 2/1/99 B2 1,540 1,544 303711AL
K&F Industries, Inc. 11 7/8% 12/1/03 B1 1,700 1,598 482240AB
3,142
DEFENSE ELECTRONICS - 0.0%
Tracor, Inc. 10 7/8%, 8/15/01 B2 7,750 7,828 892349AC
TOTAL AEROSPACE & DEFENSE 10,970
BASIC INDUSTRIES - 0.3%
CHEMICALS & PLASTICS - 0.2%
Applied Extrusion Technologies, Inc. 11 1/2%
4/1/02 (h) B3 5,000 5,000 038196AA
IMC Fertilizer Group, Inc. 9 1/4%, 10/1/00 B3 5,000 4,850 449669AH
Ivex Holdings Corp. 13 1/4%, 3/15/05 (j) Caa 15,250 7,720 465851AB
Methanex Corp. 8 7/8%, 11/15/01 Ba3 4,000 3,870 59151KAA
OSI Specialties, Inc. 9 1/4%, 10/1/02 B1 1,160 1,114 671042AA
Rexene Corp.:
pay-in-kind 10%, 11/15/02 - 540 439 761683AB
9%, 11/15/99 - 1,060 986 761683AA
Sherritt Incorporated 10 1/2%, 3/31/14 B1 4,880 4,862 824287AB
Trans Resources, Inc.:
14 1/2%, 9/1/96 B2 5,000 5,550 893320AB
11 7/8%, 7/1/02 (h) B2 2,500 2,475 893320AD
UCC Corp. 9%, 9/1/00 B1 8,655 8,439 90915TAA
45,305
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
BASIC INDUSTRIES - CONTINUED
IRON & STEEL - 0.0%
AK Steel 10 3/4%, 4/1/04 B2 $ 5,830 $ 5,830 001546AA
METALS & MINING - 0.0%
Kaiser Aluminum & Chemical Corp.:
9 7/8%, 2/15/02 B2 6,000 5,625 483008AE
12 3/4%, 2/1/03 B1 7,750 7,983 483008AD
13,608
PAPER & FOREST PRODUCTS - 0.1%
Crown Packaging Holdings Ltd. 0%,
11/1/03 (j) Caa 6,400 3,136 228444AB 228443AC
Crown Packaging Ltd. 10.75%, 11/1/00 B3 5,000 5,025 228444AB
Repap Enterprises, Inc. (i):
6 1/8%, 7/21/97 - 9,078 6,899 76026M9D
euro 6 1/8%, 7/21/97 - 4,000 3,040 76026M9C
Repap Wisconsin, Inc.:
9 1/4%, 2/1/02 B1 3,000 2,880 76026LAA
9 7/8%, 5/1/06 B3 3,000 2,850 76026LAB
Stone Container Corp.:
10 3/4%, 6/15/97 B2 5,770 5,655 861589AG
11 7/8%, 12/1/98 B1 6,330 6,409 861589AD
9 7/8%, 2/1/01 B1 6,000 5,490 861589AK
41,384
TOTAL BASIC INDUSTRIES 106,127
CONGLOMERATES - 0.1%
Coltec Industries, Inc. 10 1/4%, 4/1/02 Ba2 12,500 12,625 196879AB
Insilco Corp.:
9 1/2%, 7/1/97 Ca 4,000 3,920 457659AC
9 1/2%, 7/1/97 (g) Ca 2,620 2,620 4576599C
Sequa Corp. 9 3/8%, 12/15/03 B3 1,220 1,159 817320AG
20,324
CONSTRUCTION & REAL ESTATE - 0.1%
BUILDING MATERIALS - 0.1%
Adience, Inc. 11%, 6/15/02 - 3,995 3,156 006905AA
National Gypsum Co. 10%, 7/30/03 B1 44 44 636317AA
Triangle Pacific Corp. 10 1/2%, 8/1/03 B2 2,840 2,854 895912AC
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
CONSTRUCTION & REAL ESTATE - CONTINUED
BUILDING MATERIALS - CONTINUED
USG Corp.:
8%, 12/15/95 B3 $ 5,025 $ 5,025
9%, 12/15/98 B3 3,411 3,411 903293AH
9 1/4%, 9/15/01 (h) - 6,595 6,529 90399BAX
10 1/4%, 12/15/02 B2 750 763 903293AL
8 3/4%, 3/1/17 B3 1,840 1,776 903293AJ 903293AC
23,558
CONSTRUCTION - 0.0%
Hillsborough/Jim Walter Corp. 17%, 1/1/96 (b) Ca 11,656 10,257 373280AE
U.S. Home Corp. 9 3/4%, 6/15/03 Ba3 5,800 5,786 911920AB
16,043
TOTAL CONSTRUCTION & REAL ESTATE 39,601
DURABLES - 0.1%
AUTOS, TIRES, & ACCESSORIES - 0.0%
Chrysler Corp. 9.60%, 7/15/94 Baa2 1,500 1,516 171196AL
Hayes Wheels International, Inc. 9 1/4%,
11/15/02 Ba2 5,540 5,942 420804AA
Lear Seating Corp. 11 1/4%, 7/15/00 B2 1,500 1,598 521893AA
9,056
TEXTILES & APPAREL - 0.1%
Dan River, Inc. 10 1/8%, 12/15/03 B3 3,000 2,835 235773AA
Leslie Fay Companies, Inc. (b)(g):
9.53%, 1/15/00 - 8,931 7,546 5270109H
10.54%, 1/15/02 - 8,073 5,732 5270109J
16,113
TOTAL DURABLES 25,169
ENERGY - 0.1%
ENERGY SERVICES - 0.0%
Falcon Drilling, Inc. 9 3/4%, 1/15/01 (h) B2 3,710 3,562 305914AA
TransTexas Gas Corp. 10 1/2%, 9/1/00 B1 5,100 5,304 893895AA
8,866
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
ENERGY - CONTINUED
INDEPENDENT POWER - 0.1%
California Energy Corp., Inc. 0/10.25%,
1/15/04 Ba3 $ 26,500 $ 19,875 130190AC
OIL & GAS - 0.0%
Mesa Capital Corp (i).:
secured 0%, 6/30/98 B3 10,381 9,136 590910AF
0%, 6/30/96 - 3,480 2,897 590910AD
YPF Sociedad Anonima SA 8%, 2/5/04 B1 3,330 2,980 984245AA
15,013
TOTAL ENERGY 43,754
FINANCE - 0.0%
CREDIT & OTHER FINANCE - 0.0%
GPA Delaware, Inc. gtd. notes 8 3/4%,
12/15/98 Caa 370 307 361928AA
LaSalle National Trust NA, Trust No. 118501
mortgage note 6,100 6,100 90399BAW
Tiphook Finance Corp. 8%, 3/15/00 B3 560 431 887795AB
6,838
INSURANCE - 0.0%
Chartwell Reinsurance Corp. 10 1/4%, 3/1/04 Ba3 4,370 4,304 16139WAA
TOTAL FINANCE 11,142
HEALTH - 0.0%
MEDICAL FACILITIES MANAGEMENT - 0.0%
American Healthcare Management, Inc.
10% 8/1/03 B2 11,500 11,759 026496AD
Hallmark Healthcare Corp. 10 5/8%, 11/15/03 B3 3,110 3,024 40624GAA
14,783
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
ELECTRICAL EQUIPMENT - 0.0%
Ametek, Inc. 9 3/4%, 3/15/04 Ba3 3,140 3,148 031105AA
Ampex, Inc.:
20%, 3/15/94 - 953 953 0320929K
Unit 14%, 1/15/98 (g)(j) - 6,500 4,030 0320929F
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
ELECTRICAL EQUIPMENT - CONTINUED
Telex Communications Group 15/16%,
9/30/94 - $ 1,800 $ 1,800 87999AAD
9,931
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
Joy Technologies, Inc. 10 1/4%, 9/1/03 B1 5,270 5,270 481206AD
Maritime Group Ltd. 13 1/2%, 2/15/97 (h) - 1,420 1,401 570998AB
Thermadyne Holdings Corp.:
10 1/4%, 5/1/02 - 1,413 1,441 883435AA
10 3/4%, 11/1/03 - 1,959 1,998 883435AB
10,110
POLLUTION CONTROL - 0.0%
Envirosource, Inc. 9 3/4%, 6/15/03 B3 2,400 2,220 29409KAB
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 22,261
MEDIA & LEISURE - 0.5%
BROADCASTING - 0.2%
Act III Broadcasting, Inc. 9 5/8%, 12/15/03 B3 1,110 1,066 00503KAA
Argyle Television 9 7/8%, 12/30/03 7,910 7,515 04031KAA
Cablevision System Corp. sr. sub. deb.
9 7/8%, 2/15/13 B2 5,000 5,000 12686CAD
Century Communications Corp. 11 7/8%,
10/15/03 B2 3,000 3,240 156503AC
Continental Cablevision, Inc.:
9 1/2%, 8/1/13 Ba2 4,850 4,705 211177AK
9%, 9/1/08 Ba2 5,200 4,992 211177AG
Helicon Group LP/Helicon Cap Corp. 10 3/4%,
11/1/03 Caa 5,000 4,700 423265AB
Robin Media Group, Inc. 11 1/8%, 4/1/97 - 10,000 10,100 770685AA
SCI Television, Inc. secured:
variable rate 7 1/2%, 6/30/98 - 6,895 6,619 783895AK
11%, 6/30/05 - 26,046 26,176 783895AJ
74,113
LODGING & GAMING - 0.1%
Bally Gaming International, Inc. 10 3/8%,
7/29/98 - 7,500 7,500 0587319C
Bally's Grand, Inc. 10 3/8%, 12/15/03 (h) B2 3,000 2,955 05873JAD
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
Casino Magic Financial Corp. 11 1/2%,
10/15/01 $ 3,120 $ 3,120 14759BAC
Embassy Suites, Inc.:
gtd. 8 3/4%, 3/15/00 (h) B1 3,000 2,940 290807AH
10 7/8%, 4/15/02 B1 4,000 4,340 290807AF
Fitzgeralds Gaming Corporation 13%,
3/15/96 unit bond (1,000 bonds
and 1.54 stock warrants)(h)(i) - 2,500 2,500 338270AA
Host Marriott Corp. 10 1/2%, 5/1/06 B1 7,158 7,167 441080AH
Resorts International, Inc. secured pay-in-kind (b):
6%, 4/15/94 Ca 3,815 2,416 761185AG
15%, 4/15/94 Ca 4,102 2,535 761185AH
35,473
PUBLISHING - 0.1%
GACC Holding Co. 9 3/4%, 3/1/04 (g) - 30,000 29,550 3613549B
RESTAURANTS - 0.1%
Cafeteria Operators LP 11%, 6/30/98 (b)(g) - 5,000 3,000 127998AC
Flagstar Corp.:
10 7/8%, 12/1/02 B1 5,000 4,950 338473AA
11 1/4%, 11/1/04 B2 10,000 9,800 338473AB
17,750
TOTAL MEDIA & LEISURE 156,886
NONDURABLES - 0.1%
BEVERAGES - 0.0%
Dr. Pepper/Seven-Up Companies, Inc.
0%, 11/1/02 (j) B3 7,093 5,462 256131AD
HOUSEHOLD PRODUCTS - 0.1%
Revlon World Wide secured 0%, 3/15/98 B3 33,130 14,908 76154KAB
TOTAL NONDURABLES 20,370
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
RETAIL & WHOLESALE - 0.1%
APPAREL STORES - 0.1%
Apparel Retailers, Inc. 12 3/4%, 8/15/05 Caa $ 2,830 $ 1,641 037795AB
Lamonts Apparel Corp. 10 1/4%, 11/1/99 - 8,267 7,998 513628AB
9,639
GENERAL MERCHANDISE STORES - 0.0%
Astrum International Corp. secured 11 1/2%,
6/8/03 - 5,696 5,924 04648TAA
Hills Stores 10 1/4%, 9/30/03 453,000 448 556994CF
6,372
GROCERY STORES - 0.0%
Penn Traffic Co. 9 5/8%, 4/15/05 B2 2,810 2,754 707832AD
Ralph's Grocery Co. 10 1/4%, 7/15/02 B2 3,800 3,838 751253AB
6,592
RETAIL & WHOLESALE, MISCELLANEOUS - 0.0%
Brylane LP/B Note 10%, 9/1/03 2,000 2,100 117662AC
Color Tile, Inc. 10 3/4%, 12/15/01 B2 370 364 196267AD
2,464
TOTAL RETAIL & WHOLESALE 25,067
SERVICES - 0.0%
Neodata Corp. B 12%, 5/1/03 (j) 1,160 916 640455AC
TECHNOLOGY - 0.0%
COMPUTER SERVICES & SOFTWARE - 0.0%
Computervision Corp. 10 7/8%, 8/15/97 B2 1,840 1,757 20557TAA
ELECTRONICS - 0.0%
Berg Electronics 11 3/8%, 5/1/03 B3 3,500 3,605 083727AB
TOTAL technololgy 5,362
TRANSPORTATION - 0.0%
SHIPPING - 0.0%
Sea Containers Ltd. 9 1/2%, 7/1/03 Ba3 5,400 5,130 811371AD
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
UTILITIES - 0.1%
CELLULAR - 0.0%
Cencall Communications Corp. 0%, 1/15/04 Caa $ 6,770 $ 3,994 151297AB
Horizon Cellular Telephone 0%,10/1/00 (j) Caa 10,200 6,834 440415AB
Nextel Communications, Inc. 0%, 8/15/04(j) B3 3,830 2,288 65332VAB
13,116
ELECTRIC UTILITY - 0.1%
Del Norte Funding Corp. secured leasing
oblig. 11 1/4%, 1/2/14 (b) Ca 8,965 7,643 245279AC
El Paso Funding Corp. lease oblig. (b):
9 3/8%, 10/1/96 Ca 6,175 5,249 283681AB
10 3/4%, 4/1/13 Ca 3,340 2,839 283681AC
15,731
GAS - 0.0%
Columbia Gas Systems, Inc. (b):
7 1/2%, 6/1/97 Caa 3,080 3,450 197648BG
10.15%, 11/1/13 Caa 2,900 3,567 197648BW
7,017
TOTAL UTILITIES 35,864
TOTAL NONCONVERTIBLE BONDS 543,726
TOTAL CORPORATE BONDS
(Cost $622,250) 719,991
FOREIGN GOVERNMENT OBLIGATIONS - 0.0%
Argentina Republic BOTE 1.855%, 5/31/96 (i)
(Cost $6,723) 15,000 7,502 0401149D
U.S. TREASURY OBLIGATIONS - 5.2%
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D)(000S) (000S)
4 5/8%, 12/31/94 Aaa $ 150,000 $ 150,281 912827H9
8 5/8%, 1/15/95 Aaa 150,000 154,734 912827VT
5 1/2%, 2/15/95 Aaa 150,000 151,242 912827E2
7 3/4%, 2/15/95 Aaa 150,000 154,079 912827YG
3 7/8%, 2/28/95 Aaa 150,000 149,156 912827J8
3 7/8%, 3/31/95 Aaa 150,000 149,016 912827K2
8 3/8%, 4/15/95 Aaa 150,000 155,508 912827WB
3 7/8%, 4/30/95 Aaa 150,000 148,781 912827K5
5 7/8%, 5/15/95 Aaa 150,000 151,899 912827F3
8 1/2%, 5/15/95 Aaa 50,000 52,024 912827YQ
4 1/8%, 5/31/95 Aaa 150,000 149,016 912827K9
4 1/4%, 7/31/95 Aaa 150,000 148,875 912827L5
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,736,938) 1,714,611
OTHER SECURITIES - 0.7%
PRINCIPAL VALUE (NOTE 1)
AMOUNT (D)(000S) (000S)
BASIC INDUSTRIES - 0.0%
CHEMICALS & PLASTICS - 0.0%
Trivest 1992 Special Fund Ltd. term loan 0%,
10/31/98 (g) $ 26.6(k) $ 6,767 0491479A
PURCHASED BANK DEBT - 0.6%
Belmont L.V. Land L.P. variable rate 7/16/97 8,182 6,392 080992AA
El Paso Electric Co.:
letter of credit 5/1/98 (b) 8,837 7,511 2836779A
unsecured floating rate:
4/1/95 (b) 826 702 2836779P
12/1/95 (b) 661 562 2836779K 2836779L
variable rate term loan:
10/26/94 7,500 7,538 2836779P
5/1/96 (b) 11,842 10,066 2836779P
variable rate secured term loan 1/4/95 2,856 2,870 2836779F 2836779J
Leslie Fay Cos., Inc. (b): 5270109K
variable rate revolving loan 1/15/96 8,001 6,761 5270109E
variable rate term loan 1/15/96 10,268 8,677 5270109A
noteholder payment 1/15/96 1,056 892 5270109A
Macy 10 Special Real Estate Cap. 0%,
9/30/95 (b) 5,369 5,342 557991AA
OTHER SECURITIES - CONTINUED
PRINCIPAL VALUE (NOTE 1)
AMOUNT (D)(000S) (000S)
PURCHASED BANK DEBT - CONTINUED
Macy (R.H.)& Co., Inc. (b):
letters of credit: 556994BA
5/24/94 $ 1,766 $ 1,704 556994AU
5/27/94 21,840 21,268 5561399D
7/10/94 4,196 4,140 556994AF
5/27/95 4,023 4,003 556994CJ
mortgage loan participations:
5/27/94 30,351 29,735 5561399H
5/27/95 2,000 1,990 556994CK
variable rate revolving loans: 556994AE
5/24/94 563 544 556994AT
5/27/94 9,404 9,207 556994BB
7/10/94 1,216 1,210 556994AJ
5/27/95 1,283 1,277 556994CH
variable rate term loans:
5/24/94 744 718 556994CP
5/27/94 16,227 15,690 556994CD
5/27/95 8,397 8,355 556994AS
5/27/96 19,751 19,652 556993BD
variable rate notes:
5/27/94 801 773 556994AC
7/10/94 1,597 1,590 556994CA
12/21/94 9,693 9,645 5561399Y
Maxwell Communications Corp. PLC (b):
term loan variable rate notes 10/23/95 8,426 2,865 5777329F
variable rate revolving loan 10/23/95 4,289 1,614 5777329B
193,293
TRADE CLAIMS RECEIVABLES - 0.1%
Hills Department Stores, Inc. 1,303 1,080 43165992
Lone Star Industries, Inc. 24,788 24,788 5422909A
25,868
TOTAL OTHER SECURITIES
(Cost $180,456) 225,928
REPURCHASE AGREEMENTS - 2.4%
MATURITY VALUE (NOTE 1)
AMOUNT (000S)
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.58%
dated 3/31/94 due 4/4/94 $ 785,087 $ 784,775
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $29,708,139) $ 33,198,290
FORWARD FOREIGN CURRENCY CONTRACTS
AMOUNTS IN THOUSANDS SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO SELL
54,110,000 JPY 9/8/94 to 9/14/94 $531,716 $ (14,716)
(Receivable amount $517,000)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES --1.60%
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
JPY - Japanese yen
LEGEND
(a) Non-income producing
(b) Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
(c) Non-income producing - the company moved to seek a court appointed
administrator under British bankruptcy law.
(d) Principal amount is stated in United States dollars unless otherwise
noted.
(e) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(f) Affiliated company (see Note 5 of Notes to Financial Statements).
(g) Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 1 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST (000S)
Ampex, Inc. 14%,
1/15/98 12/10/92 $ 5,050
Atlantis Group, Inc.
(Trivest/Winston) 4/16/93 $ 90
Bally's Gaming
International, Inc.
(warrants) 7/29/98 6/29/93 $ -
Cafeteria Operators
LP 11%, 6/30/98 6/24/93 $ 4,000
GACC Holding Co.
9 3/4%, 3/1/04 2/4/94 $ 29,302
Heileman G. Brewing
Inc. 1/24/94 $ 6,800
Insilico Corp.
9.5%, 7/1/97 7/14/93 $ 2,623
Leslie Fay
9.53%, 1/15/00 7/19/93 $ 6,765
Leslie Fay
10.54%, 1/15/02 7/19/93 $ 4,132
Trivest 1992
Special Funding
Ltd. Term Loan 7/2/92 $ 6,560
(h) 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 $178,965,000 or 0.5% of net
assets.
(i) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(j) Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
(k) Represents number of units held.
INCOME TAX INFORMATION
At March 31, 1994, the aggregate cost of investment securities for income
tax purposes was $29,832,407,000. Net unrealized appreciation aggregated
$3,365,883,000, of which $4,650,479,000 related to appreciated investment
securities and $1,284,596,000 related to depreciated investment securities.
The fund hereby designates $144,000,000 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) MARCH 31, 1994
ASSETS
Investment in securities, at value (including repurchase $ 33,198,290
agreements of $784,775) (cost $29,708,139) (Notes 1
and 2) - See accompanying schedule
Short foreign currency contracts (Note 2) $ (531,716)
Contracts held, at value
Receivable for contracts held 517,000 (14,716)
Cash 1
Receivable for investments sold 1,409,916
Receivable for fund shares sold 326,738
Dividends receivable 40,519
Interest receivable 36,441
Other receivables 6,667
TOTAL ASSETS 35,003,856
LIABILITIES
Payable for investments purchased 1,458,144
Payable for fund shares redeemed 396,546
Accrued management fee 21,808
Other payables and accrued expenses 7,892
TOTAL LIABILITIES 1,884,390
NET ASSETS $ 33,119,466
Net Assets consist of (Note 1):
Paid in capital $ 28,265,640
Undistributed net investment income 94,879
Accumulated undistributed net realized gain (loss) on 1,283,512
investments
Net unrealized appreciation (depreciation) on:
Investment securities 3,490,151
Foreign currency contracts (14,716)
NET ASSETS, for 475,054 shares outstanding $ 33,119,466
NET ASSET VALUE and redemption price per share $69.72
($33,119,466 (divided by) 475,054 shares)
Maximum offering price per share (100/97.00 of $69.72) $71.88
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED MARCH 31, 1994
INVESTMENT INCOME $ 401,004
Dividends (including $79,714 received from affiliated
issuers) (Note 5)
Interest 213,077
TOTAL INCOME 614,081
EXPENSES
Management fee (Note 4) $ 186,492
Basic fee
Performance adjustment 40,010
Transfer agent fees (Note 4) 66,504
Accounting fees and expenses (Note 4) 852
Non-interested trustees' compensation 183
Custodian fees and expenses 882
Registration fees 2,349
Audit 265
Legal 335
Miscellaneous 1,467
Total expenses before reductions 299,339
Expense reductions (Note 6) (5,280) 294,059
NET INVESTMENT INCOME 320,022
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1 AND 3)
Net realized gain (loss) on:
Investment securities (including realized gain (loss) of 2,963,642
$377,710 on sales of investment in affiliated issuers)
(Note 5)
Foreign currency contracts (40,460) 2,923,182
Change in net unrealized appreciation (depreciation) on:
Investment securities (21,625)
Foreign currency contracts (12,221) (33,846)
NET GAIN (LOSS) 2,889,336
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 3,209,358
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED YEAR ENDED
MARCH 31, MARCH 31,
1994 1993
INCREASE (DECREASE) IN NET ASSETS
Operations $ 320,022 $ 453,658
Net investment income
Net realized gain (loss) on investments 2,923,182 2,672,685
Change in net unrealized appreciation (depreciation) (33,846) 399,329
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,209,358 3,525,672
FROM OPERATIONS
Distributions to shareholders (300,411) (399,316)
From net investment income
From net realized gain (2,583,157) (2,740,917)
TOTAL DISTRIBUTIONS (2,883,568) (3,140,233)
Share transactions 10,878,472 6,334,732
Net proceeds from sales of shares
Reinvestment of distributions from: 293,794 389,237
Net investment income
Net realized gain 2,539,743 2,687,960
Cost of shares redeemed (5,804,748) (4,735,273)
Net increase (decrease) in net assets resulting from 7,907,261 4,676,656
share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 8,233,051 5,062,095
NET ASSETS
Beginning of period 24,886,415 19,824,320
End of period (including undistributed net investment $ 33,119,466 $ 24,886,415
income of $94,879 and $338,771, respectively)
OTHER INFORMATION
Shares
Sold 150,758 96,019
Issued in reinvestment of distributions from: 4,280 6,236
Net investment income
Net realized gain 37,076 42,415
Redeemed (80,692) (72,034)
Net increase (decrease) 111,422 72,636
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
YEARS ENDED MARCH 31,
1994 1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 68.44 $ 68.13 $ 64.84 $ 58.60 $ 52.92
period
Income from Investment
Operations
Net investment income .61 1.20 .81 1.39 1.35
Net realized and unrealized 7.92 9.18 9.21 8.10 9.39
gain (loss) on investments
Total from investment 8.53 10.38 10.02 9.49 10.74
operations
Less Distributions
From net investment income (.75) (1.25) (1.30) (.83) (1.24)
From net realized gain (6.50) (8.82) (5.43) (2.42) (3.82)
Total distributions (7.25) (10.07) (6.73) (3.25) (5.06)
Net asset value, end of period $ 69.72 $ 68.44 $ 68.13 $ 64.84 $ 58.60
TOTAL RETURN (dagger)(double dagger) 12.94% 17.06% 16.48% 17.26% 20.32%
RATIOS AND SUPPLEMENTAL
DATA
Net assets, end of period $ 33,119 $ 24,886 $ 19,824 $ 14,808 $ 13,162
(in millions)
Ratio of expenses to average .99%(diamond) 1.00% 1.05% 1.06% 1.03%
net assets
Ratio of expenses to average 1.00%(diamond) 1.00% 1.05% 1.06% 1.03%
net assets before expense
reductions
Ratio of net investment income 1.07% 2.11% 1.57% 2.47% 2.54%
to average net assets
Portfolio turnover rate 132% 155% 172% 135% 82%
</TABLE>
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
(double dagger) THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN.
(diamond) SEE NOTE 6 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended March 31, 1994
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Magellan 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 offer 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
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 current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for the fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Dividend and
interest income is recorded net of foreign taxes where recovery of such
taxes is not assured.
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
foreign
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
currency transactions, market discount, partnerships, non-taxable dividends
and losses deferred due to wash sales and excise tax regulations. The fund
also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for income
tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income may include temporary book and tax
basis differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
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.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective April 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,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of March 31, 1993 have been reclassified to reflect
an increase in paid in capital of $770,962,000, a decrease in undistributed
net investment income of $216,867,000 and a decrease in accumulated net
realized gain on investments of $554,095,000.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser,
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS -
CONTINUED
Fidelity Management & Research Company (FMR), is responsible for
determining that the value of these underlying securities remains at least
equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other registered
investment companies having management contracts with FMR, may transfer
uninvested cash balances into a joint trading account. These balances are
invested in one or more repurchase agreements that are collateralized by
U.S. Treasury or Federal Agency obligations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities 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 $68,083,000 or .21% of net assets.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $43,050,536,000 and $36,091,387,000, respectively, of which U.S.
government and government agency obligations aggregated $2,038,273,000 and
$3,211,199,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.31% to .52% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .30%.
The basic fee is subject to a performance adjustment (up to a maximum of +
or - .20%) based on the fund's investment performance as compared to the
appropriate index over a specified period of time. For the period, the
management fee was equivalent to an annual rate of .76% of average net
assets after the performance adjustment.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200%. Effective November 1, 1993, FMR has
voluntarily agreed to implement this new group fee rate schedule as it
results in the same or a lower management fee.
Shareholders approved a new management contract containing the lower group
fee rates on March 23, 1994.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an
affiliate of FMR and the general distributor of the fund, received sales
charges of $44,752,000 on sales of shares of the fund.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $24,771,000 for the period.
5. TRANSACTIONS WITH AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions with companies which are or
were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
DOLLAR AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
ADAPTEC, Inc. (a) $ 47,192 $ - $ - $ 93,790
AST Research, Inc. (a) 30,778 22,605 - 42,035
Advanced Micro Devices,
Inc. (a) 131,983 89,195 - 252,983
Affiliated Publication Devices, Inc. - - - -
Aldus Corp. 6,531 6,482 - -
Alex Brown, Inc. 9,726 14,800 125 -
Allen Group 16,498 29,022 60 -
Altera Corp. 7,841 9,073 - -
Amdahl Corp. 24,458 - - 62,509
American President
Companies Ltd. 35,531 29,112 556 39,509
Amphenol Corp. (a) 16,095 5,251 - 45,563
Anadarko Petroleum Corp. 94,444 137,733 1,312 142,250
Analog Devices, Inc. (a) 19,243 49,373 - -
Analogic Corp. (a) 8,745 - - 18,840
Anderson Exploration Ltd. (a) 4,042 - - 38,974
Apache Corp. 46,930 5,790 1,095 110,359
Applied Magnetics Corp. 4,568 16,039 - -
Arkansas Best Corp. 6,055 6,683 71 24,177
Armstrong World Industries, Inc. 26,756 - 579 131,090
Arrow Electronics, Inc. (a) 10,401 13,548 - -
Atmel Corp. (a) 158,019 16,941 - 71,208
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Augat, Inc. (a) $ 14,839 $ 746 $ - $ 37,992
Avnet, Inc. 58,680 33,576 1,622 107,674
Baker Hughes, Inc. 14,172 93,295 2,351 -
Baker (J.), Inc. - - - -
Bally's Grand, Inc. - - - -
Baroid Corp. 22,228 23,743 864 -
Best Buy Co., Inc. (a) 53,876 36,430 - 93,321
Bethlehem Steel Corp. (a) 34,203 10 - -
Beverly Enterprises, Inc. - - - -
Briggs & Stratton Corp. 11,674 - - 73,013
Brown Group, Inc. 5,169 - - 38,790
Brunswick Corp. 58,894 - - 160,776
Burlington Coat Factory
Warehouse Corp. (a) 14,284 - - 66,272
Burlington Resources, Inc. 148,358 25,445 4,635 387,013
CML Group, Inc. (a) 178,889 60,472 64 -
CSX Corp. 8,166 - - 438,446
Cabot Corp. 37,919 18,840 1,183 72,149
California Microwave Corp. - 6,095 - -
Canadian Natural
Resources Ltd. (a) 12,974 - - 51,009
Cedar Fair LP. - 127 2,142 37,018
Centex Corp. 30,656 18,349 426 60,950
Chipcom Corp. (a) 4,351 2,632 - 30,030
Chiquita Brands, Inc. 2,564 - - 43,399
Cincinnati Milicron, Inc. 424 655 - -
Cirrus Logic, Inc. (a) 44,517 53,748 - 49,460
Claire's Stores, Inc. 8,761 1,492 146 28,352
Clothestime, Inc. (a) 3,913 4,686 - -
Coast Savings Financial, Inc. (a) 900 1,568 - 13,578
Columbia/HCA Healthcare Corp. 58,634 - 666 397,670
Conner Peripherals, Inc. (a) 39,203 12,238 - 63,262
Consolidated Freightways, Inc. (a) 3,202 - - 54,154
Consolidated Stores Corp. (a) 44,977 23,010 - 60,925
Cordis Corp. (a) 27,428 - - 61,627
Cypress Semiconductor Corp. 57,320 26,739 - 58,056
Cyprus Minerals Co. 10,137 10,556 526 -
DSC Communications Corp. (a) 14,078 23,301 - -
Dallas Semiconductor Corp. (a) 1,795 14,852 - 22,236
Data General Corp. - 11,802 - -
Dell Computer Corporation (a) 15,664 - - 69,112
Devon Energy Corp. 342 6,849 223 28,260
Diamond Shamrock R&M, Inc. 6,721 2,003 - 44,754
Diebold, Inc. 31,022 11,795 2,111 99,448
Dress Barn, Inc. (a) 9,027 6,665 - 22,642
EMC Corp. (a) 78,727 55,617 - 226,851
Echlin, Inc. 57,445 16,763 3,211 131,821
Elcor Corp. 7,286 8,678 - -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Electronics For Imaging
Incorporated (a) $ - $ 2,476 $ - $ -
Energy Service Co. (a) 26,995 - - 64,470
Exabyte (a) 8,609 - - 28,634
Enterra Corp. 2,474 3,098 - -
Federated Department
Stores, Inc. (a) 16,925 42,997 - -
Figgie International Holdings, Inc. - - - -
FirstFed Michigan Corp. 1,532 - 563 26,214
Fleetwood Enterprises, Inc. 48,135 3,681 2,062 93,028
Foote Cone & Belding
Communications, Inc. 9,662 - 254 35,906
Foster Wheeler Corp. 21,828 501 - 92,216
Genesco, Inc. 6,732 8,689 - -
Global Marine, Inc. (a) - - - -
Hall Mark Electronics Corp. - - - -
Halliburton Co. 7,419 21,435 3,040 -
Harris Corp. 13,072 - - 108,816
Hillhaven Corp. - 3,434 - -
Home Shopping Network, Inc. (a) - - - -
Hospitality Franchise Systems,
Inc. (a) 6,460 11,742 - -
Hudson Bay Corp. 38,273 30,564 - 67,571
Indresco, Inc. (a) 18,601 6,770 - 28,307
Integrated Device
Technology, Inc. (a) 8,080 4,926 - 49,301
Intelligent Electronics, Inc. 24,082 - 444 71,380
Itel Corp. (a) 42,153 1,526 - 74,740
Jones Apparel Group, Inc. (a) - 645 - 40,964
KLA Instrument Corp. (a) 19,274 17,065 - -
Kansas City Southern
Industries, Inc. 46,867 21,440 722 138,530
Kaufman & Broad Homes Corp. 13,599 14,656 284 -
Kelley Oil & Gas Partners Ltd. 2,167 - 249 -
Kemet Corp. - - - -
Kent Electronics Corp. (a) 1,006 3,204 - 9,009
Kerr-Mcgee Corp. 19,624 20,660 1,973 -
Komag, Inc. (a) 45,768 25,172 - 48,486
LDDS Communications, Inc. (a) - 3,305 - -
LSI Logic Corp. (a) 28,708 10,917 - 99,062
Landstar System, Inc. (a) - - - 17,487
La-Z-Boy Chair Co. 2,966 2,727 - 32,374
Lennar Corp. 2,560 - 26 29,115
Lotus Development Corp. (a) 128,582 28,504 - 298,243
Lowe's Companies, Inc. 76,542 36,576 - 299,022
MNC Financial Corp. - 5,937 - -
MS Carriers, Inc. 8,858 5,733 - 22,806
MagneTek, Inc. 1,694 10,671 - -
Mark IV Industries, Inc. 19,690 1,912 153 54,841
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Marshall Industries, Inc. (a) $ 17,697 $ 1,304 $ - $ 42,322
Maxim Integrated Products,
Inc. (a) 6,301 8,264 - -
McKesson Corp. 81,307 - 2,776 220,420
Medusa Corp. 5,657 - - 30,082
Mesa, Inc. (a) - - - 12,737
Micron Technology, Inc. (a) 65,431 64,045 - -
Mirage Resorts, Inc. (a) 35,477 35,964 - -
Mitchell Energy &
Development Corp. 7,103 5,778 - 22,590
Mobile Telecommunications
Technologies, Inc. 23,586 21,972 - -
Mueller Industries, Inc. (a) 2,162 - - 28,235
Mutual Risk Management Ltd. 1,264 2,416 68 -
Mylan Laboratories, Inc. 26,760 28,087 161 -
Nacco Industriess, Inc. 9,823 9,083 352 23,869
Nabors Industries, Inc. (a) 8,785 - - 32,688
National Gypsum Co. (a) 27,808 14,890 - 64,376
National Semiconductor Corp. (a) 71,691 60,307 53 192,973
Network General Corp. 1,979 - - 19,321
Nine West Group, Inc. (a) 28,233 36 - 86,237
Noble Affiliates, Inc. 31,204 28,884 629 79,486
Noble Drilling Corp. (a) 15,726 1,869 - 28,162
Northstar Energy (a) 7,229 - - 24,214
Novellus Systems, Inc. (a) 8,202 8,929 - -
Oak Industries, Inc. (a) 11,922 3,549 - 23,071
Oakwood Homes Corp. 15,767 1,966 88 33,596
Omnicom Group 75,365 17,786 839 139,697
PHM Corp. - - - -
Paragon Trade Brands, Inc. (a) 5,420 12,395 - -
Parker Drilling Corp. (a) 9,751 - - 29,558
Parker & Parsley Petroleum Co. 24,559 1,179 244 56,757
Payless Cashways, Inc. (a) 27,017 4,450 - 48,426
Pinnacle West Capital Corp. 54,435 5,962 2,214 140,096
Pioneer Standard Electronics, Inc. 236 282 161 22,246
Pittston Company Service Group 52,649 - 467 96,545
Pogo Producing Co. (a) 6,926 5,489 - 52,978
Premark International, Inc. 15,241 - 453 128,902
Premdor, Inc. (a) 17,414 - - 39,797
Pulte Corp. 34,119 5,681 493 79,480
Quantum Corp. 25,546 2,098 - 69,512
Reading & Bates Corp. (a) 1,824 150 - 31,237
Recognition Equipment, Inc. (a) 17,990 - - 17,591
Renaissance Energy Ltd. (a) 39,576 - - 156,153
Revco D.S., Inc. (a) 8,568 23,923 - 52,159
Ross Stores (a) 4,463 14,050 66 -
Rowan Cos. Inc. (a) 10,741 37,378 - -
Ryan's Family Steak Houses, Inc. - 12,304 - -
SCI Systems, Inc. (a) 6,911 8,862 - -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Safecard Services, Inc. $ 16,474 $ 4,854 $ 390 $ 38,462
San Juan Basin Royalty Trust 20 1,622 2,137 29,427
Sanifill, Inc. (a) 119 - - 17,002
Santa Fe Pacific Corp. 48,840 1,519 1,069 266,013
Scientific Atlanta, Inc. - 46,729 306 -
Seagate Technology. (a) 82,861 56,427 - 113,546
Seagull Energy Corp. (a) 14,306 27,094 - 57,503
Showboat, Inc. 24,544 12,484 63 25,553
Silver King Communications, Inc. - - - -
Smith International, Inc. 6,058 16,850 - -
Smith (A. O.) Corp. 11,676 - - 37,226
Snyder Oil Corp. 23,016 451 344 44,897
Southdown, Inc. 10,991 9,794 - 23,116
Spiegel, Inc. 2,787 - 47 21,264
Springs Industries, Inc. 16,369 16,107 813 20,220
Standard Products Co. 8,451 14,623 447 -
Sterling Software, Inc. (a) 2,222 - - 28,609
Sun Television & Appliances, Inc. - 1,922 16 -
Swift Transportation Co., Inc. (a) 8,144 - - 32,130
TJX Companies, Inc. 38,947 93,753 2,006 -
TNT Freightways Corp. 2,703 6,820 431 30,118
TPI Enterprises - 6,643 - -
TRINOVA, Corp. 9,842 4,349 796 55,026
Tecumseh Products Co. 4,149 - - 44,505
Tektronix 3,867 - - 50,563
Tellabs, Inc. (a) 38,727 28,474 - 84,780
Texas Industries 6,914 - - 29,216
Texas Instruments, Inc. 207,680 212,102 4,300 377,127
Tidewater, Inc. 36,310 24,961 1,871 82,179
Toll Brothers Inc. (a) 7,168 - - 29,953
Tosco Corp. 31,828 718 647 77,700
Tommy Hilfiger (a) 13,382 - - 45,898
Transcanada Pipelines Ltd. 20,563 37,633 8,275 175,381
Unocal Corp. 79,915 91,400 7,476 -
U.S. Robotics, Inc. (a) 21,399 8,863 - 31,744
USF&G Corp. 5,510 30,282 855 -
USG Corp. (a) 84,868 13,612 - 124,957
VLSI Technology, Inc. (a) 21,388 - - 48,774
Varian Associates, Inc. 43,381 32,516 291 74,154
Varity Corp. (a) 109,013 49,802 - 146,508
Vintage Petroleum, Inc. 2,649 1,039 70 23,535
Waban, Inc. (a) 21,990 - - 53,771
Walbro Corp. 11,368 1,729 298 23,719
Wallace Computer Services, inc. 3,016 - - 39,544
Weatherford International, Inc. (a) 1,643 2,022 - -
West Coast Energy, Inc. (a) - 4,018 3,225 95,950
Western Co. of North America 7,199 10,102 - -
Western Digital Corp. (a) 7,638 4,827 - 49,766
Wheeling Pittsburg Corp.(a) 2,242 3,653 - -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Wyle Laboratories $ 3,206 $ - $ 413 $ 22,918
Xtra Corp. 41,071 3,576 327 69,841
Total $ 4,774,511 $ 2,748,089 $ 79,715 $ 10,801,977
(a) Non-income
6. 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
$5,280,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and the Shareholders of Fidelity Magellan Fund:
We have audited the accompanying statement of assets and liabilities of
Fidelity Magellan Fund, including the schedule of portfolio investments, as
of March 31, 1994, 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 March 31, 1994 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 Magellan Fund as of March 31, 1994, 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.
COOPERS & LYBRAND
Boston, Massachusetts
April 29, 1994
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. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
32 West Central Boulevard
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8180 Greensboro Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Jeff Vinik, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
Robert H. Morrison, Manager,
Security Transactions
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Fidelity Fifty
Growth Company Fund
Low-Priced Stock Fund
Magellan Fund
Mid-Cap Stock Fund
New Millennium Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Growth Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
