(2_FIDELITY_LOGOS)FIDELITY
MAGELLAN(registered trademark)
FUND
SEMIANNUAL REPORT
SEPTEMBER 30, 1995
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 10 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 11 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 34 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 38 Notes to the financial statements.
REPORT OF INDEPENDENT 46 The auditors' 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.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISK, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES,
CALL
1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST
OR SEND MONEY.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although the markets have been fairly positive this year, no one can
predict what lies ahead for investors. Last year, stocks posted
below-average returns and bonds had one of the worst years in history. This
downturn followed a period in which the investing environment was generally
very positive.
These market ups and downs are a normal part of investing, and there are
some basic principles that are helpful for investors to remember in
different types of markets.
If you can leave your money invested over the long term, you can avoid the
results of the volatility that generally accompanies the stock market in
the short term, as we witnessed last year. You also can help to manage some
of the risks of investing through diversification. A stock fund is already
diversified because it invests in many issues. You can diversify even
further by placing some of your money in several different types of stock
funds or in other investment categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. 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 securities that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, PAST 6 PAST 1 PAST 5 PAST 10
1995 MONTHS YEAR YEARS YEARS
Magellan 28.04% 37.60% 180.96% 514.37%
Magellan
(incl. 3% sales charge) 24.20% 33.47% 172.53% 495.93%
S&P 500(registered trademark) 18.25% 29.75% 121.49% 342.81%
Average Growth Fund 18.82% 25.87% 124.66% 290.30%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or 10 years. For
example, if you invested $1,000 in a fund that had a 5% return over the
past year, the value of your investment would be $1,050. You can compare
the fund's returns to the performance of the Standard & Poor's Composite
Index of 500 Stocks - a common proxy for the U.S. stock market. To measure
how the fund's performance stacked up against its peers, you can compare it
to the average growth fund, which reflects the performance of 613 growth
funds with similar objectives tracked by Lipper Analytical Services over
the past six months. Both benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED SEPTEMBER 30, 1995 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Magellan 37.60% 22.95% 19.91%
Magellan (incl. 3% sales charge) 33.47% 22.20% 19.54%
S&P 500(registered trademark) 29.75% 17.24% 16.04%
Average Growth Fund 25.87% 17.13% 14.14%
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. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking the arithmetic
average. This may produce a slightly different figure than that obtained by
averaging the cumulative total returns and annualizing the result.)
$10,000 OVER 10 YEARS
Magellan (021) Standard & Poor's
09/30/85 9700.00 10000.00
10/31/85 10328.08 10462.00
11/30/85 11201.13 11179.69
12/31/85 11782.29 11720.79
01/31/86 12246.18 11786.43
02/28/86 13512.76 12668.05
03/31/86 14422.30 13374.93
04/30/86 14487.45 13223.79
05/31/86 14963.57 13927.30
06/30/86 15320.24 14162.67
07/31/86 14298.33 13370.98
08/31/86 15218.34 14363.10
09/30/86 13924.66 13175.27
10/31/86 14652.18 13935.49
11/30/86 14799.38 14274.12
12/31/86 14579.92 13910.13
01/31/87 16475.40 15783.82
02/28/87 17697.13 16407.28
03/31/87 17921.71 16881.46
04/30/87 17634.24 16731.21
05/31/87 17652.22 16876.77
06/30/87 18382.98 17729.05
07/31/87 19281.35 18627.91
08/31/87 20055.68 19322.73
09/30/87 19562.92 18899.56
10/31/87 14514.64 14828.60
11/30/87 13418.50 13606.72
12/31/87 14725.79 14642.19
01/31/88 15309.68 15258.63
02/29/88 16238.77 15969.68
03/31/88 16194.70 15476.22
04/30/88 16484.81 15648.01
05/31/88 16440.74 15784.14
06/30/88 17564.45 16508.63
07/31/88 17450.61 16445.90
08/31/88 16896.10 15886.74
09/30/88 17604.85 16563.52
10/31/88 17972.08 17023.98
11/30/88 17729.71 16780.54
12/31/88 18078.08 17074.20
01/31/89 19544.68 18324.03
02/28/89 19226.66 17867.76
03/31/89 19799.09 18284.08
04/30/89 20794.28 19233.02
05/31/89 21892.15 20011.96
06/30/89 21702.21 19897.89
07/31/89 23525.61 21694.67
08/31/89 24141.01 22119.89
09/30/89 24558.87 22029.20
10/31/89 23787.72 21518.12
11/30/89 24178.99 21957.09
12/31/89 24330.27 22484.06
01/31/90 22761.10 20975.38
02/28/90 23228.60 21245.96
03/31/90 23822.12 21808.98
04/30/90 23220.47 21263.76
05/31/90 25285.77 23336.97
06/30/90 25395.67 23178.28
07/31/90 25108.23 23104.11
08/31/90 22648.13 21015.50
09/30/90 21210.96 19992.04
10/31/90 20948.89 19906.08
11/30/90 22534.01 21192.01
12/31/90 23233.31 21783.27
01/31/91 24857.45 22733.02
02/28/91 27015.78 24358.43
03/31/91 27933.39 24947.90
04/30/91 28036.79 25007.78
05/31/91 29635.42 26088.11
06/30/91 27893.99 24893.28
07/31/91 29626.53 26053.30
08/31/91 30537.23 26670.77
09/30/91 30421.73 26225.37
10/31/91 30830.43 26576.79
11/30/91 29306.68 25505.74
12/31/91 32765.56 28423.60
01/31/92 32779.89 27894.92
02/29/92 33443.70 28257.55
03/31/92 32536.33 27706.53
04/30/92 33018.67 28521.10
05/31/92 33335.03 28660.86
06/30/92 32747.87 28233.81
07/31/92 33666.90 29388.57
08/31/92 32936.78 28786.11
09/30/92 33314.60 29125.78
10/31/92 33549.47 29227.72
11/30/92 34397.01 30224.39
12/31/92 35063.93 30596.15
01/31/93 35987.69 30853.16
02/28/93 36738.94 31272.76
03/31/93 38085.62 31932.61
04/30/93 38458.47 31159.85
05/31/93 39974.29 31994.93
06/30/93 40531.74 32087.71
07/31/93 40978.87 31959.36
08/31/93 43388.71 33170.62
09/30/93 43859.06 32915.21
10/31/93 43888.10 33596.55
11/30/93 42442.19 33277.39
12/31/93 43709.84 33680.04
01/31/94 45437.25 34825.16
02/28/94 45104.11 33881.40
03/31/94 43012.70 32404.17
04/30/94 43444.55 32818.95
05/31/94 42944.07 33357.18
06/30/94 41080.85 32539.93
07/31/94 42455.78 33607.24
08/31/94 44466.77 34985.13
09/30/94 43310.29 34128.00
10/31/94 44775.17 34895.88
11/30/94 42320.85 33624.97
12/31/94 42918.37 34123.63
01/31/95 42481.48 35008.45
02/28/95 44865.12 36372.73
03/31/95 46542.02 37446.09
04/30/95 48707.21 38548.88
05/31/95 50068.85 40089.68
06/30/95 53882.58 41020.96
07/31/95 58018.95 42381.22
08/31/95 58522.28 42487.59
09/29/95 59593.48 44280.57
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Fidelity Magellan
Fund on September 30, 1985, and paid a 3% sales charge. As the chart shows,
by September 30, 1995, the value of your investment would have grown to
$59,593 - a 495.93% 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 $44,281 - a
342.81% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Jeffrey Vinik, Portfolio Manager of Fidelity
Magellan Fund
Q. JEFF, HOW DID THE FUND PERFORM OVER THE PAST SIX MONTHS?
A. It was a period of excellent performance for U.S. stocks in general, and
for the fund in particular. During the six months ended September 30, 1995,
the fund had a total return of 28.04%. That compared to a 18.82% return for
the average growth fund during the same period, according to Lipper
Analytical Services. For the 12 months ended September 30, 1995, the fund
rose 37.60%, while the average growth fund was up 25.87%.
Q. WHY DID THE FUND OUTPERFORM MOST OF ITS PEERS?
A. Technology stocks made the difference. My bottom-up analysis of
companies with the best earnings prospects and stock valuations - prices
relative to earnings - kept pointing time and time again to technology
companies. Broadly speaking, these stocks were outstanding performers over
the past six months, driven by strong business conditions and powerful
earnings gains. Whether we're talking about semiconductor, networking,
hardware or software companies, most have experienced very broad-based
demand from both the corporate and consumer sides of the U.S. economy.
Q. WHICH TECHNOLOGY NAMES HELPED THE FUND MOST?
A. As a group, the semiconductor companies experienced the strongest
earnings momentum and stock price gains. The demand for semiconductors -
for use in personal computers as well as a wide array of other consumer
products - continued to exceed the available supply. In addition, the
valuations of semiconductor stocks were quite depressed entering the
period. Micron Technology is a good example of these dynamics at work. Its
stock price more than doubled during the period, yet earnings grew so
quickly that, in my view, the stock is still relatively cheap. Other
semiconductor stocks that made strong contributions to the fund's
performance included Applied Materials, the largest U.S. semiconductor
equipment manufacturer; Texas Instruments, which has greatly improved its
product portfolio in recent years; LSI Logic, which I believe continues to
have excellent growth prospects; and Intel, which appears to be in the
sweet spot of the cycle for its Pentium microprocessor.
Q. AND OUTSIDE OF THE SEMICONDUCTOR GROUP?
A. I think it's important to point out that within technology, the fund is
diversified across several sub-sectors, and there are differences in the
business prospects of each group. Although technology stocks often tend to
move up or down as a pack on any given day, over time, the companies with
the best earnings growth usually will emerge as the best performers. Over
the past six months, other strong performers included Nokia, which
manufacturers cellular telephone equipment; computer manufacturer Dell
Computer; Hewlett Packard, which makes computer printers; and software
manufacturer Microsoft. What all of these companies had in common were
strong business conditions, accelerating revenues, powerful earnings
growth, good cost control and reasonable stock valuations.
Q. JEFF, DURING THE LAST COUPLE WEEKS OF THE PERIOD, TECHNOLOGY STOCKS
STUMBLED A BIT. WHAT HAPPENED?
A. Two things. First, a weakening U.S. economy - brought on, in part, by
1994's rising interest rates - led to a slowing of earnings growth at some
technology companies. Second, some companies experienced a normal, seasonal
dip in business. It's not unusual for the business prospects of technology
companies to weaken over the summer, especially in Europe. Often, this blip
represents no more than a short-term hiatus before activity picks up in the
fall. However, these two factors have scared some investors, who have been
looking for any reason to take profits after the strong gains technology
stocks have made thus far this year. It's important to remember that
corrections in the technology sector can occur at any time and that the
sector historically has been volatile.
Q. THE FUND'S STAKE IN TECHNOLOGY HAS DROPPED A BIT FROM 42.6% SIX MONTHS
AGO TO 39.9% ON SEPTEMBER 30. DOES THAT MEAN YOU'VE BEEN SELLING THESE
STOCKS?
A. This reduction does not represent a change in my long-term view of the
technology sector. My outlook on technology spending in the U.S. and around
the world over the next several years continues to be very positive. That
said, some of these stocks made such strong gains over the past six months
that their valuations began to more closely reflect their business
prospects. That led me to do some profit taking. In addition, there was a
handful of companies that experienced a slowdown in business or that I
expect may report disappointing earnings over the next quarter or two. I've
reduced positions in some of these companies. But to reiterate, as I build
the fund on a stock-by-stock basis, I continue to find that the majority of
stocks with excellent long-term earnings prospects and attractive
valuations fall into the technology group.
Q. WHAT ARE SOME OF THE RISKS TIED TO INVESTING NEARLY 40% OF THE FUND IN
THIS SECTOR?
A. Clearly, one risk is that the fund's technology stake might cause it to
underperform the broad market during a downturn. That's because technology
stocks historically have tended to be more volatile than the overall
market. Over time, however, a short-term correction such as this could just
prove to be a pothole on the road to strong long-term performance. A more
serious risk would be if, uniformly, business conditions for technology
companies were to suddenly take a turn for the worse. Given the long-term
business prospects of these companies, I believe it's unlikely that we'll
see such a wholesale weakening of these prospects. Because the long-term
business and economic elements that have driven the technology sector are
unlikely to change, I anticipate that the fund will remain overweighted in
technology relative to the broad market for the foreseeable future.
Q. LET'S MOVE BEYOND TECHNOLOGY. WHERE ELSE DID YOU FIND OPPORTUNITIES?
A. I increased the fund's weighting in the financial sector from 11.4% to
14.9% over the past six months. Earnings growth among these stocks was
enhanced by falling interest rates in 1995. In addition, many of these
stocks continue to look cheap. Among brokerage companies, Merrill Lynch and
Morgan Stanley have performed well and I remain positive on their short-
and long-term earnings outlooks. The Federal National Mortgage Association
(Fannie Mae) also had a strong run and has attractive prospects given the
company's 13% to 15% expected long-term growth rate, and reasonable
valuation.
Q. EARLIER, YOU MENTIONED A WEAKENING ECONOMY. HOW HAS THAT AFFECTED THE
FUND'S ECONOMICALLY SENSITIVE CYCLICAL STOCKS?
A. Cyclicals - most of which are included in the industrial machinery and
equipment, durables, and transportation sectors - turned in mixed
performance over the past six months. Slower economic growth is good news
and bad news for cyclical companies. On the positive side, it usually leads
to lower interest rates, which is a plus for the stock market overall. On
the negative side, it often leads to disappointing earnings for the
cyclical stocks, whose earnings are closely tied to economic swings.
Caterpillar is a good example. Its stock price fell significantly over the
past couple of months on expectations of weak earnings. In addition, steel
stocks such as Nucor turned in disappointing results. On the other hand,
Chrysler performed very well in anticipation of improving earnings. And a
host of U.S. cyclical companies, from autos to machinery to railroads,
could begin to rebound in anticipation of what I believe will be a
strengthening of the economy in late 1996 and into 1997.
Q. LET'S DISCUSS YOUR OVERALL OUTLOOK FOR THE FUND. CAN THIS POSITIVE
MOMENTUM CONTINUE?
A. Since the stock market's performance has been so strong by historical
standards over the past six months, it's unlikely that we'll see a repeat
performance over the next six months. Market corrections can occur at any
time, and I do have concerns about corporate earnings in the near-term in
light of continued sluggishness in the U.S. economy. That said, my personal
opinion is that stock returns will remain good in both the short and the
long term. I see no impetus for higher inflation, and, given the weakness
of the economy, the chances appear good that the Federal Reserve Board will
initiate further interest rate cuts to stimulate the economy. An
environment of lower interest rates, coupled with the improving
productivity of U.S. companies, could bode well for corporate earnings as
we look out to late 1996 and 1997. This should lead to a good stock picking
environment. As always, I'll continue to search for those companies that
can produce the best long-term earnings growth, selling at the most
reasonable valuations.
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 September 30,
1995, more than $53 billion
MANAGER: Jeffrey 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 FUND'S SIZE:
"Over the past six months, the
fund's net assets have grown
from approximately $40 billion
to more than $53 billion, an
increase of roughly 33%. This
was due to a combination of
the strong appreciation of the
fund's investments and new
money coming into the fund.
Many people ask me
questions such as, `Is the
fund too big?', `Is the fund
unmanageable?', or `Should
the fund be closed to new
investors?' My answer to all
three questions is no.
Clearly, it is easier to manage
a $1 billion fund than a $50
billion fund. But the truth is
that I continue to find more
good investment ideas than
there is money in the fund. As
to questions about the fund's
manageability - or how my
trading impacts the overall
market - it's important to
remember that I invest with a
long-term horizon. I acquire
stock positions slowly, over a
period of time, and sell
positions slowly, over a period
of time, in seeking the
maximum value for the fund's
shareholders. If I do my job
well, I see no reason why the
fund can't continue to grow in
size and grow returns for
shareholders at the same
time."
INVESTMENT CHANGES
TOP TEN STOCKS AS OF SEPTEMBER 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Hewlett-Packard Co. 2.0 1.3
Chrysler Corp. 2.0 0.4
Micron Technology, Inc. 1.7 1.3
Motorola, Inc. 1.7 2.2
Texas Instruments, Inc. 1.7 1.1
Nokia Corp. AB, Series A 1.6 1.2
Caterpillar, Inc. 1.5 1.1
Columbia/HCA Healthcare Corp. 1.5 1.5
Applied Materials, Inc. 1.5 1.1
LSI Logic Corp. 1.4 0.8
TOP FIVE MARKET SECTORS AS OF SEPTEMBER 30, 1995
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET SECTORS
6 MONTHS AGO
Technology 39.9 42.6
Finance 14.9 11.4
Industrial Machinery & Equipment 9.3 7.3
Durables 7.7 7.0
Transportation 5.2 7.9
ASSET ALLOCATION
AS OF SEPTEMBER 30, 1995 * AS OF MARCH 31, 1995 **
Row: 1, Col: 1, Value: 1.1
Row: 1, Col: 2, Value: 4.1
Row: 1, Col: 3, Value: 3.9
Row: 1, Col: 4, Value: 45.9
Row: 1, Col: 5, Value: 45.0
Row: 1, Col: 1, Value: 1.1
Row: 1, Col: 2, Value: 2.2
Row: 1, Col: 3, Value: 1.4
Row: 1, Col: 4, Value: 45.3
Row: 1, Col: 5, Value: 40.0
Stocks 93.9%
Bonds 2.9%
Short-term
investments 3.1%
Other 0.1%
FOREIGN
INVESTMENTS 8.2%
Stocks 93.9%
Bonds 2.9%
Short-term
investments 3.1%
Other 0.1%
FOREIGN
INVESTMENTS 8.3%
Stocks 98.3%
Bonds 0.4%
Short-term
investments 1.2%
Other 0.1%
FOREIGN
INVESTMENTS 7.1%
*
**
INVESTMENTS SEPTEMBER 30, 1995
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 93.9%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 0.3%
Boeing Co. 562,400 $ 38,384
CAE Industries Ltd. 2,266,400 15,627
Rockwell International Corp. 2,020,500 95,469
149,480
BASIC INDUSTRIES - 2.4%
CHEMICALS & PLASTICS - 1.0%
Agrium, Inc. (g) 1,241,600 45,581
Albemarle Corp. 420,400 7,883
Atlantis Group, Inc. (Trivest/Winston) (h) 77,269 493
Grace (W.R.) & Co. 833,800 55,656
Hanna (M.A.) Co. (g) 3,477,150 91,710
IMC Fertilizer Group, Inc. 367,200 23,271
Morton International, Inc. 982,300 30,451
Potash Corp. of Saskatchewan 1,685,700 105,235
Praxair, Inc. 954,800 25,541
Rohm & Haas Co. 1,170,000 70,639
Schulman (A.), Inc. 1,029,000 25,725
Terra Industries, Inc. 407,100 5,801
Union Carbide Corp. 393,300 15,634
Vigoro Corp. 515,100 21,763
525,383
IRON & STEEL - 0.8%
AK Steel Holding Corp. (a)(g) 2,606,000 76,877
Allegheny Ludlum Industries, Inc. 548,700 11,180
Bethlehem Steel Corp. (a) 3,143,100 44,396
Carpenter Technology Corp. (g) 956,800 37,435
Cleveland Cliffs, Inc. 33,400 1,374
Inland Steel Industries, Inc. (g) 3,425,200 77,923
J & L Specialty Steel, Inc. 930,400 19,538
LTV Corp. (a) 4,058,181 56,815
LTV Corp. (warrants) (a) 1,013,857 3,042
Mueller Industries, Inc. (a)(g) 584,300 30,311
Nucor Corp. 705,900 31,589
Quanex Corp. 507,900 10,983
WHX Corp. (a)(g) 1,682,200 19,345
Worthington Industries, Inc. 1,040,500 19,119
439,927
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
METALS & MINING - 0.4%
Alcan Aluminium Ltd. 2,000,000 $ 64,850
Aluminum Co. of America 1,270,200 67,162
Belden, Inc. (g) 2,000,800 52,521
Inco Ltd. 662,900 22,792
207,325
PACKAGING & CONTAINERS - 0.0%
Crown Packaging Holdings Ltd. (warrants) (a) 5,000 96
PAPER & FOREST PRODUCTS - 0.2%
Albany International Corp. Class A 1,202,700 28,113
Louisiana-Pacific Corp. 2,391,000 57,683
Weyerhaeuser Co. 308,900 14,094
99,890
TOTAL BASIC INDUSTRIES 1,272,621
CONGLOMERATES - 1.3%
Crane Co. 1,230,300 42,445
Harris Corp. (g) 3,941,600 216,295
Mark IV Industries, Inc. (g) 5,362,828 119,323
Standex International Corp. (g) 868,900 31,606
Textron, Inc. 365,600 24,952
Tyco International Ltd. 1,348,100 84,930
United Technologies Corp. 1,690,300 149,380
668,931
CONSTRUCTION & REAL ESTATE - 3.1%
BUILDING MATERIALS - 2.0%
American Standard Companies, Inc. (a) 636,600 18,780
Armstrong World Industries, Inc. (g) 2,010,900 111,605
Carlisle Companies, Inc. (g) 937,900 39,040
Centex Construction Products (g) 1,615,000 21,197
Lafarge Corp. (g) 5,660,492 104,012
Manville Corp. (a) 1,573,200 20,648
Masco Corp. 4,744,600 130,477
Medusa Corp. (g) 1,645,900 46,497
Owens-Corning Fiberglas Corp. (a) 2,298,900 102,588
Premdor, Inc. (a)(g) 3,008,900 23,550
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
BUILDING MATERIALS - CONTINUED
Sherwin-Williams Co. 3,836,100 $ 134,264
Southdown, Inc. (a)(g) 1,538,300 27,113
Tecumseh Products Co. Class A 83,100 3,989
Texas Industries, Inc. (g) 1,248,900 65,879
USG Corp. (a)(g) 4,508,000 126,224
United Dominion Industries Ltd. 1,958,200 46,891
Vulcan Materials Co. 903,100 47,864
1,070,618
CONSTRUCTION - 0.7%
Centex Corp. (g) 2,633,100 76,360
Clayton Homes, Inc. 811,400 19,271
Kaufman & Broad Home Corp. 1,482,200 18,713
Lennar Corp. 1,270,900 27,642
Oakwood Homes Corp. (g) 2,014,800 71,022
Pulte Corp. (g) 2,756,600 78,219
Toll Brothers, Inc. (a)(g) 3,148,700 59,432
350,659
ENGINEERING - 0.4%
Fluor Corp. 4,087,400 228,894
TOTAL CONSTRUCTION & REAL ESTATE 1,650,171
DURABLES - 7.7%
AUTOS, TIRES, & ACCESSORIES - 5.4%
Borg-Warner Automotive, Inc. 978,200 31,302
Chrysler Corp. (g) 19,961,300 1,057,949
Cummins Engine Co., Inc. 832,500 32,051
Dana Corp. 4,130,300 119,262
Danaher Corp. 1,972,900 64,612
Eaton Corp. 757,500 40,148
Echlin, Inc. (g) 4,607,000 164,700
Ford Motor Co. 341,300 10,623
General Motors Corp. 15,686,659 735,312
Goodyear Tire & Rubber Co. 1,697,800 66,851
Johnson Controls, Inc. 1,296,300 81,991
Lear Seating Corp. (a) 938,000 27,554
Magna International, Inc. Class A (g) 4,781,530 216,524
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES - CONTINUED
NACCO Industries, Inc. Class A (g) 818,846 $ 48,619
Navistar International Corp. (a) 1,206,400 14,477
Smith (A.O.) Corp. Class B (g) 1,866,800 48,303
TRW, Inc. 1,517,900 112,894
2,873,172
CONSUMER ELECTRONICS - 1.0%
Black & Decker Corp. (g) 8,569,400 292,431
Harman International Industries, Inc. 572,090 28,032
Maytag Co. 1,352,200 23,664
Sunbeam-Oster, Inc. 817,400 12,159
Toro Co. (g) 703,800 22,170
Whirlpool Corp. 2,876,300 166,106
544,562
HOME FURNISHINGS - 0.4%
Heilig-Meyers Co. (g) 2,754,100 64,033
Leggett & Platt, Inc. (g) 6,792,200 167,258
Polyvision Corp. (a) 6,052 20
231,311
TEXTILES & APPAREL - 0.9%
Fila Holding Spa sponsored ADR 1,099,900 38,909
Jones Apparel Group, Inc. (a) 97,100 3,459
Nautica Enterprises, Inc. (a) 496,800 17,015
NIKE, Inc. Class B 869,400 96,612
Nine West Group, Inc. (a) 1,627,500 74,051
Shaw Industries, Inc. (g) 8,456,400 124,732
Tommy Hilfiger (a)(g) 3,548,800 115,336
Warnaco Group, Inc. Class A 500,000 12,000
482,114
TOTAL DURABLES 4,131,159
ENERGY - 1.4%
ENERGY SERVICES - 0.4%
Dresser Industries, Inc. 1,573,600 37,570
ENSCO International, Inc. (a) 2,025,700 34,437
Global Marine, Inc. (a)(g) 9,522,700 67,849
Nabors Industries, Inc. (a) 347,400 3,279
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Noble Drilling Corp. (a) 1,030,000 $ 7,983
Parker Drilling Co. (a) 550,000 3,300
Rowan Companies, Inc. (a) 2,398,200 17,987
Sonat Offshore Drilling, Inc. 558,200 18,211
Tidewater, Inc. 1,993,700 56,073
246,689
OIL & GAS - 1.0%
Anadarko Petroleum Corp. 519,200 24,597
Anderson Exploration Ltd. (a) 700,000 6,588
Apache Corp. 2,274,515 59,706
Burlington Resources, Inc. 1,450,000 56,188
Devon Energy Corp. 904,100 19,777
Enron Oil & Gas Co. 1,852,800 40,298
Noble Affiliates, Inc. 2,220,700 58,571
Northstar Energy Corp. (a)(g) 1,961,300 18,092
Parker & Parsley Petroleum Co. 340,700 6,814
Pogo Producing Co. 1,354,764 30,821
Renaissance Energy Ltd. (a)(g) 7,399,900 166,857
Renaissance Energy Ltd. (a)(i) 750,000 16,911
Snyder Oil Corp. (g) 1,886,200 22,870
528,090
TOTAL ENERGY 774,779
FINANCE - 14.9%
BANKS - 2.2%
Advanta Corp. 110,200 4,959
Banc One Corp. 1,476,700 53,900
Bank of New York Co., Inc. 3,968,200 184,521
Chemical Banking Corp. 5,772,300 351,389
Citicorp 1,936,000 136,972
Morgan (J.P.) & Co., Inc. 2,911,100 225,246
NationsBank Corp. 2,429,100 163,357
Norwest Corp. 894,000 29,279
1,149,623
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - 1.9%
Countrywide Credit Industries, Inc. 5,067,500 $ 119,086
Dean Witter Discover & Co. 1,257,577 70,739
Equitable Companies, Inc. 9,040,400 221,490
First USA, Inc. 1,035,800 56,192
Green Tree Acceptance, Inc. 1,434,000 87,474
Greenpoint Financial Corp. 2,014,400 55,648
Household International, Inc. 4,565,798 283,079
MBNA Corp. 1,637,300 68,153
Mercury Finance Co. 923,700 22,515
Non-Performing Mortgage Loan Trust (a) 6,154 308
United Companies Financial Corp. (g) 788,200 53,795
1,038,479
FEDERAL SPONSORED CREDIT - 2.2%
Federal Home Loan Mortgage Corporation 7,126,500 492,619
Federal National Mortgage Association 6,814,500 705,301
1,197,920
INSURANCE - 4.6%
Aetna Life & Casualty Co. 1,470,700 107,913
Allstate Corp. 9,431,200 333,629
American International Group, Inc. 2,922,100 248,378
CIGNA Corp. 1,299,400 135,300
Chubb Corp. (The) 1,062,600 102,010
Conseco, Inc. (g) 2,002,400 104,876
Equitable Iowa Companies (g) 1,972,700 72,990
General Re Corp. 337,100 50,902
Lincoln National Corp. 1,601,000 75,447
MBIA, Inc. 1,887,000 133,033
MGIC Investment Corp. 2,300,300 131,692
Mid Ocean Ltd. 1,410,500 48,662
Reliastar Financial Corp. 1,810,900 73,568
SAFECO Corp. 120,000 7,875
St. Paul Companies, Inc. (The) 529,400 30,904
SunAmerica, Inc. (g) 1,900,600 119,500
Transatlantic Holdings, Inc. 385,800 25,945
Travelers, Inc. (The) 11,450,630 608,315
USLIFE Corp. (g) 2,035,300 59,533
2,470,472
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SAVINGS & LOANS - 0.4%
Ahmanson (H.F.) & Co. 500,000 $ 12,688
FirstFed Michigan Corp. (g) 1,165,050 40,922
Golden West Financial Corp. 52,400 2,642
Great Western Financial Corp. 3,741,714 88,866
TCF Financial Corp. 379,500 22,106
Washington Mutual, Inc. 1,777,000 47,090
214,314
SECURITIES INDUSTRY - 3.6%
Alex Brown, Inc. 743,000 43,373
Bear Stearns Companies, Inc. 5,886,581 126,561
Edwards (A.G.), Inc. 3,020,000 80,407
Franklin Resources, Inc. 1,996,600 115,054
Lehman Brothers Holdings, Inc. 4,796,260 110,914
Merrill Lynch & Co., Inc. (g) 9,064,299 566,519
Morgan Stanley Group, Inc. 3,633,700 349,289
PaineWebber Group, Inc. 3,775,475 74,566
Price (T. Rowe) Associates, Inc. 1,423,000 72,929
Quick & Reilly Group, Inc. (The) 417,000 19,130
Raymond James Financial, Inc. 362,800 7,891
Salomon, Inc. 3,300,200 126,233
Schwab (Charles) Corp. 6,391,500 178,962
United Asset Management Corp. 492,000 19,741
1,891,569
TOTAL FINANCE 7,962,377
HEALTH - 2.2%
MEDICAL EQUIPMENT & SUPPLIES - 0.3%
Cardinal Health, Inc. (g) 2,409,050 133,401
Millipore Corp. 489,000 18,338
Pall Corp. 601,800 13,992
165,731
MEDICAL FACILITIES MANAGEMENT - 1.9%
Columbia/HCA Healthcare Corp. 16,888,102 821,184
Health Management Associates, Inc. Class A (a) 706,558 22,698
HEALTHSOUTH Rehabilitation Corp. (a) 2,342,500 59,734
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - CONTINUED
Oxford Health Plans, Inc. (a) 486,000 $ 35,356
Vencor, Inc. (a) 2,790,169 89,285
1,028,257
TOTAL HEALTH 1,193,988
HOLDING COMPANIES - 0.2%
Norfolk Southern Corp. 1,551,700 115,990
INDUSTRIAL MACHINERY & EQUIPMENT - 9.3%
ELECTRICAL EQUIPMENT - 3.0%
Adtran, Inc. (a) 383,700 13,334
Allen Group, Inc. (The) (g) 1,971,900 71,481
AMETEK, Inc. 888,300 15,212
Ampex Corp. Class A (warrants) (a) 160,023 710
Amphenol Corp. Class A (a)(g) 3,355,900 72,571
Anixter International, Inc. (a)(g) 2,590,100 107,165
Asea AB:
Series A 330,000 33,021
Series B Free shares 777,100 76,977
sponsored ADR 45,100 4,504
Avid Technology, Inc. (a) 113,900 4,898
California Microwave Corp. (a) 57,900 1,462
Emerson Electric Co. 4,031,800 288,274
General Signal Corp. 1,943,800 56,856
Glenayre Technologies, Inc. (g) 2,118,150 152,507
Oak Industries, Inc. (a)(g) 1,473,600 44,392
Philips Electronics NV 7,190,100 350,517
Philips Electronics NV (Bearer) 5,519,900 269,398
Scientific-Atlanta, Inc. 411,600 6,946
Vicor Corp. (a)(g) 1,668,800 40,364
1,610,589
INDUSTRIAL MACHINERY & EQUIPMENT - 6.3%
AGCO Corp. (g) 1,785,450 81,238
Case Corp. (g) 6,816,300 250,499
Caterpillar, Inc. (g) 14,483,500 823,749
Cincinnati Milacron, Inc. (g) 3,391,400 106,829
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Deere & Co. (g) 5,224,400 $ 425,136
Dover Corp. 4,080,000 156,060
Duriron Co., Inc. (g) 960,200 28,086
Greenfield Industries, Inc. (g) 1,290,500 39,683
Harnischfeger Industries, Inc. 2,181,700 72,814
IDEX Corp. (g) 1,076,750 38,494
Illinois Tool Works, Inc. 4,330,900 254,982
Ingersoll-Rand Co. (g) 7,845,700 294,214
Kaydon Corp. (g) 886,900 26,164
Kennametal, Inc. (g) 2,651,854 96,130
Parker-Hannifin Corp. (g) 6,575,550 249,871
Singer Co. 797,800 21,241
Thermadyne Holdings Corp. (a) 3,688 66
Timken Co. 1,529,358 65,189
TRINOVA Corp. (g) 2,878,500 97,149
UCAR International, Inc. (a)(g) 1,000,000 27,250
Ultratech Stepper, Inc. 240,000 10,140
Varity Corp. (a)(g) 4,288,100 190,820
3,355,804
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,966,393
MEDIA & LEISURE - 0.9%
ENTERTAINMENT - 0.0%
Carnival Cruise Lines, Inc. Class A 814,600 19,550
LEISURE DURABLES & TOYS - 0.1%
Harley Davidson, Inc. 1,378,300 33,596
Mattel, Inc. 1,291,775 37,946
71,542
LODGING & GAMING - 0.8%
Bally Gaming International, Inc. (warrants) (a) 225,000 1,547
Bally's Grand, Inc. (warrants) (a) 61,691 524
Grand Casinos, Inc. (a) 465,400 18,907
Hilton Hotels Corp. 1,269,900 81,115
Host Marriott Corp. (a)(g) 15,894,400 196,693
La Quinta Motor Inns, Inc. 2,071,212 57,994
Maritime Group Ltd. (warrants) (a) 17,040 -
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
Prime Hospitality Corp. (a)(g) 3,077,600 $ 31,545
Sun International Hotels Ltd. 32,689 1,994
Sun International Hotels Ltd. Class B 6,864 419
390,738
TOTAL MEDIA & LEISURE 481,830
NONDURABLES - 0.1%
AGRICULTURE - 0.0%
Pioneer Hi-Bred International, Inc. 699,400 32,172
BEVERAGES - 0.0%
Heileman G Brewing Co. unit Class 1 (non-vtg.) (a)(h) 340 340
HOUSEHOLD PRODUCTS - 0.1%
Premark International, Inc. 714,500 36,350
TOTAL NONDURABLES 68,862
RETAIL & WHOLESALE - 2.1%
APPAREL STORES - 0.0%
Dylex Ltd. (a) 16,128 30
Dylex Ltd. (warrants) (a) 5,289 2
Lamonts Apparel Corp. (a) 143,486 9
Lamonts Apparel Corp. (warrants) (a) 264,824 -
41
APPLIANCE STORES - 0.0%
Cellstar Corp. (a) 493,900 15,434
DRUG STORES - 0.2%
General Nutrition Companies, Inc. (a) 584,900 26,613
Revco (D.S.), Inc. (a) 2,258,897 53,084
Rite Aid Corp. 172,500 4,830
84,527
GENERAL MERCHANDISE STORES - 0.0%
Federated Department Stores, Inc. (a):
Class C (warrants) 341,542 3,117
Class D (warrants) 341,542 3,202
6,319
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
GROCERY STORES - 0.3%
Food 4 Less Holdings, Inc. (warrants) (a)(h) 1,169 $ 35
Grand Union Capital Corp. Class B (a) 6,979 -
Kroger Co. (The) (a) 981,700 33,501
Safeway, Inc. (a) 2,519,600 105,193
138,729
RETAIL & WHOLESALE, MISCELLANEOUS - 1.6%
Barnes & Noble, Inc. (a) 1,252,500 47,908
Circuit City Stores, Inc. 2,102,700 66,498
Corporate Express (a) 76,450 1,863
Lowe's Companies, Inc. 7,728,000 231,840
Micro Warehouse, Inc. (a) 1,242,100 56,826
Officemax, Inc. (a) 1,483,700 35,980
Office Depot, Inc. (a) 67,500 2,033
Petsmart, Inc. (a) 1,622,800 54,770
Staples, Inc. (a) 3,503,900 98,985
Sunglass Hut International, Inc. (a) 642,100 32,105
Tandy Corp. (g) 3,467,400 210,645
Viking Office Products, Inc. (a) 813,900 33,980
Zale Corp. (a) 70,000 971
874,404
TOTAL RETAIL & WHOLESALE 1,119,454
SERVICES - 1.1%
ADVERTISING - 0.3%
Omnicom Group, Inc. (g) 2,804,044 182,613
PRINTING - 0.2%
ASM Lithography Holding NV (a) 653,200 28,659
Bowne & Co., Inc. (g) 1,675,000 33,919
Reynolds & Reynolds Co. Class A 485,500 16,689
79,267
SERVICES - 0.6%
CDI Corp. (a) 770,500 15,699
Interim Services, Inc. (a)(g) 960,900 25,944
Manpower, Inc. (g) 7,164,700 207,776
Robert Half International, Inc. (a)(g) 2,526,500 86,217
335,636
TOTAL SERVICES 597,516
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - 39.9%
COMMUNICATIONS EQUIPMENT - 6.7%
ADC Telecommunications, Inc. (a)(g) 3,584,000 $ 163,072
Andrew Corp. (a) 1,482,850 90,639
Bolt Beranek & Newman, Inc. (a) 408,100 15,253
Cisco Systems, Inc. (a) 5,628,500 388,367
DSC Communications Corp. (a)(g) 7,428,900 440,162
Ericsson (L.M.) Telephone Co.:
Class B 11,367,600 279,871
Class B (rights) (a) 11,267,600 13,140
Class B ADR 7,852,500 192,386
Class B ADR (rights) (a) 7,502,500 8,751
Network Equipment Technologies (a)(g) 1,575,600 65,584
Network General Corp. (a)(g) 1,498,400 61,809
Nokia Corp. AB:
Series A 12,457,800 874,938
Series K 1,930,400 135,576
sponsored ADR 1,055,600 73,628
Northern Telecom Ltd. 2,282,600 81,245
Tellabs, Inc. (a)(g) 6,219,400 261,992
3Com Corp. (a)(g) 9,012,700 410,078
U.S. Robotics Corp. 199,100 16,973
3,573,464
COMPUTER SERVICES & SOFTWARE - 6.4%
Acclaim Entertainment, Inc. (a)(g) 4,484,000 115,463
Alantec Corp. (a) 215,900 6,855
America Online, Inc. (a) 1,500,700 103,173
American Management Systems, Inc. (a) 495,600 13,257
Ascend Communications, Inc. (a)(g) 1,876,900 150,152
Broderbund Software, Inc. (a) 654,400 49,816
CUC International, Inc. (a) 6,059,237 211,316
Cadence Design Systems, Inc. (a) 450,100 17,666
Ceridian Corp. (a) 1,586,800 70,414
Cerner Corp. (a) 1,463,800 50,135
Chipcom Corp. 92,900 4,530
Computer Associates International, Inc. 2,672,350 112,907
Computer Sciences Corp. (a) 1,087,200 69,989
Continuum Co., Inc. (a)(g) 1,750,900 67,191
Corel Systems Corp. (a) 2,029,400 33,469
Electronic Arts, Inc. (a)(g) 3,586,700 131,811
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
Electronics for Imaging, Inc. (a) 195,300 $ 13,988
Equifax, Inc. 442,300 18,521
General Motors Corp. Class E 2,902,000 132,041
HBO & Co. (g) 2,335,300 145,956
Informix Corp. (a) 5,966,200 193,902
Mentor Graphics Corp. (a) 1,158,800 24,190
Microsoft Corp. (a) 3,625,900 328,144
NETCOM On-Line Communication Services, Inc. (a) 184,400 8,114
Netmanage, Inc. (a)(g) 2,363,700 56,138
Netscape Communications Corp. (a) 24,300 1,519
Oracle Systems Corp. (a) 16,935,800 649,911
Parametric Technology Corp. (a)(g) 5,066,100 311,565
Paychex, Inc. 383,250 17,725
Peoplesoft, Inc. (a) 338,600 30,770
Platinum Technology, Inc. (a) 600,800 12,467
Reuters Holdings PLC:
Ord. 2,315,000 20,504
ADR Class B 2,157,500 114,078
Softkey International, Inc. (a) 913,000 40,400
Sterling Software, Inc. (a) 400,500 18,223
Stratacom, Inc. (a) 1,333,580 73,680
UUNET Technologies, Inc. (a) 35,000 1,619
3,421,599
COMPUTERS & OFFICE EQUIPMENT - 8.7%
ADAPTEC, Inc. (a) 2,537,200 104,660
Amdahl Corp. (a) 2,681,100 25,806
Apple Computer, Inc. 1,422,500 52,988
Bay Networks, Inc. (a) 750,000 40,031
Comdisco, Inc. (g) 2,919,800 86,864
Compaq Computer Corp. (a) 2,479,300 119,936
Conner Peripherals, Inc. (a)(g) 4,753,900 79,034
Dell Computer Corp. (a)(g) 4,143,500 352,198
Diebold, Inc. 992,400 46,023
Digital Equipment Corp. (a)(g) 9,635,600 439,624
Fore Systems, Inc. (a) 1,100,300 40,711
Gateway 2000, Inc. (a)(g) 4,654,900 142,556
Hewlett-Packard Co. 12,946,800 1,079,439
International Business Machines Corp. 4,182,700 394,742
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Komag, Inc. (a)(g) 1,393,300 $ 91,087
Pitney Bowes, Inc. 274,400 11,525
Quantum Corp. (a) 2,037,100 44,562
Read Rite Corp. (a)(g) 4,257,700 155,406
SCI Systems, Inc. (a) 1,005,100 34,676
Seagate Technology (a)(g) 7,269,900 306,245
Sequent Computer Systems, Inc. (a) 627,000 12,462
Silicon Graphics, Inc. (a)(g) 11,783,800 405,068
Stormedia, Inc. Class A (a)(g) 285,100 12,901
Sun Microsystems, Inc. (a) 2,268,500 142,916
Symbol Technologies, Inc. (a)(g) 1,808,000 59,890
Western Digital Corp. (a)(g) 3,533,000 56,086
Xerox Corp. 2,317,300 311,387
4,648,823
ELECTRONIC INSTRUMENTS - 3.2%
Advantest Corp. 365,000 21,448
Analogic Corp. (g) 1,230,400 24,916
Applied Materials, Inc. (a)(g) 7,691,900 786,497
Fluke Corp. (g) 425,400 16,165
KLA Instruments Corp. (a) 372,800 29,917
Lam Research Corp. (a)(g) 1,740,500 103,995
Measurex Corp. 283,100 9,696
Novellus Systems, Inc. (a)(g) 1,070,900 74,963
Tektronix, Inc. (g) 3,338,100 196,948
Teradyne, Inc. (a)(g) 7,393,800 266,177
Varian Associates, Inc. (g) 3,397,900 180,089
1,710,811
ELECTRONICS - 14.9%
AMP, Inc. 7,385,900 284,357
Advanced Micro Devices, Inc. (g) 9,581,500 279,061
Alliance Semiconductor Corp. (a) 1,307,750 51,983
Altera Corp. (a)(g) 2,339,000 145,895
Analog Devices, Inc. (a)(g) 4,508,050 156,091
Arrow Electronics, Inc. (a)(g) 4,671,900 254,035
Atmel Corp. (a)(g) 9,066,282 305,987
Augat, Inc. (g) 1,899,620 35,855
Avnet, Inc. (g) 4,063,345 209,770
Berg Electronics Holdings Corp. (a)(i) 218,280 1,310
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
C-Cube Microsystems, Inc. (a) 321,600 $ 14,713
Cascade Communications Corp. (a)(g) 2,251,400 110,881
Cirrus Logic, Inc. (a)(g) 3,495,900 200,140
Cypress Semiconductor Corp. (a)(g) 3,376,400 130,413
Cyrix Corp. (a) 598,400 22,814
Dallas Semiconductor Corp. 1,262,900 25,889
Electroglas, Inc. (a)(g) 643,600 43,845
Integrated Device Technology, Inc. (a) 3,213,440 80,336
Integrated Silicon Solution (a) 253,500 9,443
Intel Corp. 7,665,800 460,906
International Rectifier Corp. (a) 920,200 37,038
Kemet Corp. (a)(g) 1,962,400 67,212
Kent Electronics Corp. (a) 296,250 12,998
LSI Logic Corp. (a)(g) 12,803,400 739,396
Lattice Semiconductor Corp. (a)(g) 1,147,400 46,613
Linear Technology Corp. (g) 4,907,100 203,645
Marshall Industries (a)(g) 1,632,500 61,627
Maxim Integrated Products, Inc. (a)(g) 1,853,900 137,189
Microchip Technology, Inc. (g) 3,185,600 120,655
Micron Technology, Inc. (g) 11,769,400 935,667
Motorola, Inc. 12,217,000 933,073
National Semiconductor Corp. (a)(g) 12,226,480 337,757
Pioneer Standard Electronics, Inc. (g) 2,236,641 39,141
Rohm Co. Ltd. 669,000 41,995
SGS Thomson Microelectronics NV:
(For. Reg.) (a) 43,100 2,103
(Loc. Reg.) (a) 2,500,500 121,587
Solectron Corp. (a) 1,026,000 40,527
Tencor Instruments 357,600 15,824
Texas Instruments, Inc. (g) 11,370,100 908,187
Tokyo Electron Ltd. 1,311,000 56,660
VLSI Technology, Inc. (a) 1,984,700 67,976
Vishay Intertechnology, Inc. 1,456,770 61,184
Wyle Laboratories (g) 1,226,100 55,021
Xilinx, Inc. (a) 2,372,600 114,181
7,980,980
TOTAL TECHNOLOGY 21,335,677
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - 5.2%
AIR TRANSPORTATION - 1.6%
AMR Corp. (a) 1,632,100 $ 117,715
British Airways PLC ADR. 30,500 2,177
Comair Holdings, Inc. (g) 1,807,650 47,903
Delta Air Lines, Inc. 2,223,600 153,984
KLM Royal Dutch Airlines ADR 2,933,235 102,663
KLM Royal Dutch Airlines Ord. (g) 4,863,292 170,711
Northwest Airlines Corp. Class A (a) 2,469,000 104,933
Qantas Airways Ltd. sponsored ADR (i) 797,800 13,463
UAL Corp. (a)(g) 905,800 154,779
ValuJet Airlines (a) 600,000 19,575
887,903
RAILROADS - 3.1%
Bombardier, Inc. Class B (g) 13,575,900 159,383
Burlington Northern Sante Fe Corp. 4,080,639 295,846
CSX Corp. (g) 7,601,500 639,476
Conrail, Inc. (g) 6,039,600 415,223
Illinois Central Corp, Series A 1,235,076 48,322
Trinity Industries, Inc. 1,900,000 58,900
Wisconsin Central Transportation Corp. (a) 628,800 41,972
1,659,122
SHIPPING - 0.1%
American President Companies Ltd. 649,500 18,998
Kirby Corp. (a)(g) 1,530,900 23,729
42,727
TRUCKING & FREIGHT - 0.4%
Air Express International Corp. 569,800 14,387
Airborne Freight Corp. 24,800 608
American Freightways Corp. (a) 952,900 14,293
Consolidated Freightways, Inc. 903,700 22,367
Federal Express Corp. (a) 305,000 25,315
Fritz Companies, Inc. (a) 595,300 43,866
Landstar System, Inc. (a)(g) 1,216,200 29,341
Pittston Company Services Group 329,300 8,932
Swift Transportation Co., Inc. (a)(g) 2,240,100 38,642
TNT Freightways Corp. 800,300 15,106
212,857
TOTAL TRANSPORTATION 2,802,609
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - 1.8%
CELLULAR - 0.7%
Mobile Telecommunications Technologies, Inc. (a) 1,287,300 $ 39,745
Paging Network, Inc. (a) 1,286,100 61,733
Vodafone Group PLC sponsored ADR 6,124,000 251,084
352,562
GAS - 0.2%
Enron Corp. 812,000 27,202
Questar Corp. 428,700 13,772
Seagull Energy Corp. (a) 704,900 14,274
Sonat, Inc. 1,203,300 38,506
93,754
TELEPHONE SERVICES - 0.9%
AT&T Corp. 3,390,600 222,932
Cincinnati Bell, Inc. 789,200 21,308
Frontier Corp. 1,802,300 47,986
LCI International, Inc. (a) 460,400 18,071
WorldCom, Inc. (a) 5,514,700 177,160
487,457
TOTAL UTILITIES 933,773
TOTAL COMMON STOCKS
(Cost $35,082,402) 50,225,610
PREFERRED STOCKS - 0.0%
CONVERTIBLE PREFERRED STOCKS - 0.0%
TECHNOLOGY - 0.0%
ELECTRONICS - 0.0%
Alpine Group, Inc. 8% (cumulative) 4,069 183
NONCONVERTIBLE PREFERRED STOCKS - 0.0%
DURABLES - 0.0%
AUTOS, TIRES, & ACCESSORIES - 0.0%
Harvard Industries, Inc. pay-in-kind $14.25 54,223 1,362
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONCONVERTIBLE PREFERRED STOCKS - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
ELECTRICAL EQUIPMENT - 0.0%
Ampex Corp. 8% (a)(h) 4,415 $ 2,677
TOTAL NONCONVERTIBLE PREFERRED STOCKS 4,039
TOTAL PREFERRED STOCKS
(Cost $3,915) 4,222
CORPORATE BONDS - 0.2%
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D) (000S) (000S)
CONVERTIBLE BONDS - 0.0%
BASIC INDUSTRIES - 0.0%
PAPER & FOREST PRODUCTS - 0.0%
Repap Enterprises, Inc.:
8 1/2%, 8/1/97 - $ 250 $ 260
9%, 6/30/98 - CAD 12,900 9,423
9,683
FINANCE - 0.0%
CREDIT & OTHER FINANCE - 0.0%
Polly Peck International PLC 7 1/4%, 1/4/05 (c) - 1,300 42
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
ELECTRICAL EQUIPMENT - 0.0%
Ampex Corp., Series C, 0%, 6/30/97 - 1,305 1,804
RETAIL & WHOLESALE - 0.0%
DRUG STORES - 0.0%
Big B, Inc. 6 1/2%, 3/15/03 B2 3,500 4,331
TOTAL CONVERTIBLE BONDS 15,860
NONCONVERTIBLE BONDS - 0.2%
BASIC INDUSTRIES - 0.1%
CHEMICALS & PLASTICS - 0.0%
IMC Fertilizer Group, Inc. 9 1/4%, 10/1/00 B1 3,950 4,069
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
BASIC INDUSTRIES - CONTINUED
CHEMICALS & PLASTICS - CONTINUED
Trans Resources, Inc.:
14 1/2%, 9/1/96 B2 $ 5,000 $ 5,075
11 7/8%, 7/1/02 (i) B2 2,500 2,337
11,481
PACKAGING & CONTAINERS - 0.0%
Crown Packaging Holdings Ltd.:
10 3/4%, 11/1/00 B3 3,000 2,872
0%, 11/1/03 (f) Caa 14,480 6,625
9,497
PAPER & FOREST PRODUCTS - 0.1%
Stone Container Corp.:
10 3/4%, 6/15/97 B2 5,770 5,986
11 7/8%, 12/1/98 B1 6,330 6,805
12,791
TOTAL BASIC INDUSTRIES 33,769
DURABLES - 0.0%
TEXTILES & APPAREL - 0.0%
Leslie Fay Cos., Inc. (b)(h):
9.53%, 1/15/00 - 8,931 5,359
10.54%, 1/15/02 - 8,073 4,036
9,395
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
Thermadyne Holdings Corp.:
10 1/4%, 5/1/02 B3 632 623
10 3/4%, 11/1/03 Caa 1,957 1,937
2,560
POLLUTION CONTROL - 0.0%
Envirosource, Inc. 9 3/4%, 6/15/03 B3 2,400 2,136
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,696
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
MEDIA & LEISURE - 0.1%
BROADCASTING - 0.1%
Citicasters, Inc. 9 3/4%, 2/15/04 B- $ 18,750 $ 18,844
Robin Media Group, Inc. 11 1/8%, 4/1/97 - 10,000 10,275
SCI Television, Inc. secured 7 1/2%,
6/30/98 (j) - 3,879 3,879
32,998
LODGING & GAMING - 0.0%
Bally Gaming International, Inc. 10 3/8%,
7/15/98 - 7,500 7,725
Maritime Group Ltd. pay-in-kind
14%, 2/15/97 (b) - 1,571 314
8,039
RESTAURANTS - 0.0%
Cafeteria Operators LP 11%, 6/30/98 (b)(h) - 5,000 1,250
TOTAL MEDIA & LEISURE 42,287
RETAIL & WHOLESALE - 0.0%
APPAREL STORES - 0.0%
Lamonts Apparel Corp. 10 1/4%, 11/1/99 (b)(i) - 8,804 4,050
SERVICES - 0.0%
PRINTING - 0.0%
BFP Holdings Corp. Class B
0%, 4/15/04 (f) Caa 5,093 3,667
UTILITIES - 0.0%
ELECTRIC UTILITY - 0.0%
Del Norte Funding Corp. secured leasing oblig.
11 1/4%, 1/2/14 (b) Ca 8,965 5,603
El Paso Funding Corp. lease oblig. (b):
9 3/8%, 10/1/96 Ca 6,175 3,859
10 3/4%, 4/1/13 Ca 3,340 2,104
11,566
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
UTILITIES - CONTINUED
GAS - 0.0%
Columbia Gas Systems, Inc. (b):
7 1/2%, 6/1/97 B3 $ 3,080 $ 4,158
10.15%, 11/1/13 B3 2,900 4,321
8,479
TOTAL UTILITIES 20,045
TOTAL NONCONVERTIBLE BONDS 117,909
TOTAL CORPORATE BONDS
(Cost $137,700) 133,769
U.S. TREASURY OBLIGATIONS - 2.7%
Stripped:
0%, 2/15/19 950,000 195,966
0%, 8/15/19 600,000 120,072
0%, 2/15/20 100,000 19,303
0%, 8/15/20 950,000 177,080
0%,11/15/21 400,000 69,396
7 5/8%, 2/15/25 760,140 860,737
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $1,419,807) 1,442,554
COMMERCIAL MORTGAGE SECURITIES - 0.0%
Bardell Associates Note Trust 12 1/2%, 11/1/08 (h)
(Cost $4,889) - 4,809 4,887
FOREIGN GOVERNMENT OBLIGATIONS (K) - 0.0%
Argentina Republic BOTE 1
1.01%, 5/31/96 (j)
(Cost $2,069) - 15,000 2,371
OTHER SECURITIES - 0.1%
MOODY'S RATINGS (E) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D) (000S) (000S)
PURCHASED BANK DEBT - 0.1%
El Paso Electric Co. (b):
unsecured loan $ 29,666 $ 21,393
variable secured loan 2,856 2,913
GPA Group PLC (b):
CCF 12,753 12,243
DAF 1,804 1,732
Leslie Fay Cos., Inc. (b):
revolving loan 9,057 5,434
term loan 10,268 6,161
Trivest 1992 Special Fund Ltd. loan 26.6(l) 8,113
TOTAL Purchased Bank debt 57,989
TRADE CLAIMS RECEIVABLE - 0.0%
Hills Stores (Bearer) 434 217
TOTAL OTHER SECURITIES
(Cost $61,685) 58,206
REPURCHASE AGREEMENTS - 3.1%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a joint
trading account at 6.46% dated
9/29/95 due 10/2/95 $ 1,648,430 1,647,543
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $38,360,010) $ 53,519,162
CURRENCY ABBREVIATIONS
CAD - Canadian dollar
LEGEND
1. Non-income producing
2. Non-income producing - issuer filed for protection under the Federal
Bankruptcy Code or is in default of interest payment.
3. Non-income producing - the company moved to seek a court appointed
administrator under British bankruptcy law.
4. Principal amount is stated in United States dollars unless otherwise
noted.
5. Standard & Poor's Corporation credit ratings are used in the absence of
a rating by Moody's Investors Service, Inc.
6. Debt obligation initially issued in zero coupon form which converts to
coupon form at a specified rate and date.
7. Affiliated company (see Note 6 of Notes to Financial Statements).
8. Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on each holding is as follows:
ACQUISITION
ACQUISITION COST
SECURITY DATE (000S)
Ampex Corp. 8% 2/16/95 $ 2,318
Atlantis Group, Inc.
(Trivest/Winston) 4/16/93 $ 90
Bardell Associates
Note Trust 12 1/2%
11/1/08 4/19/94 $ 4,961
Cafeteria Operators
LP 11%, 6/30/98 6/24/93 $ 4,000
Food 4 Less Holdings,
Inc. (warrants) 5/17/93 $ 0
Heileman G Brewing,
Co. unit Class 1 1/21/94 $ 6,800
Leslie Fay Cos., Inc.:
9.53%, 1/15/00 7/13/93 $ 6,765
10.54%, 1/15/02 7/19/93 to 11/11/93 $ 5,337
9. 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 $38,071,000 or 0.1% of net
assets.
10. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
11. Some foreign government obligations have not been individually rated by
S&P or Moody's. The ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's ratings of
the sovereign credit of the issuing government.
12. Represents number of units held.
INCOME TAX INFORMATION
At September 30, 1995, the aggregate cost of investment securities for
income tax purposes was $38,473,567,000. Net unrealized appre- ciation
aggregated $15,045,595,000, of which $15,458,881,000 related to appreciated
invest- ment securities and $413,286,000 related to depreciated investment
securities.
At March 31, 1995, the fund had a capital loss carryforward of
approximately $503,092,000 which will expire on March 31, 2003.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) SEPTEMBER 30, 1995
ASSETS
Investment in securities, at value (including repurchase $ 53,519,162
agreements of $1,647,543) (cost $38,360,010) -
See accompanying schedule
Receivable for investments sold 1,339,671
Receivable for fund shares sold 102,843
Dividends receivable 42,495
Interest receivable 9,536
Other receivables 6,853
TOTAL ASSETS 55,020,560
LIABILITIES
Payable for investments purchased $ 1,846,398
Payable for fund shares redeemed 74,074
Accrued management fee 32,767
Other payables and accrued expenses 11,520
TOTAL LIABILITIES 1,964,759
NET ASSETS $ 53,055,801
Net Assets consist of:
Paid in capital $ 35,570,572
Undistributed net investment income 50,042
Accumulated undistributed net realized gain (loss) on 2,276,022
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 15,159,165
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 574,485 shares outstanding $ 53,055,801
NET ASSET VALUE and redemption price per share $92.35
($53,055,801 (divided by) 574,485 shares)
Maximum offering price per share (100/97.00 of $92.35) $95.21
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED SEPTEMBER 30, 1995
INVESTMENT INCOME $ 237,035
Dividends (including $80,419 received from
affiliated issuers)
Interest 41,372
TOTAL INCOME 278,407
EXPENSES
Management fee $ 144,313
Basic fee
Performance adjustment 31,391
Transfer agent fees 49,009
Accounting fees and expenses 424
Non-interested trustees' compensation 189
Custodian fees and expenses 996
Registration fees 1,235
Audit 199
Legal 115
Miscellaneous 87
Total expenses before reductions 227,958
Expense reductions (2,086) 225,872
NET INVESTMENT INCOME 52,535
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain of $907,807 3,064,402
on sales of investments in affiliated issuers)
Foreign currency transactions (94) 3,064,308
Change in net unrealized appreciation (depreciation) on:
Investment securities 8,181,594
Assets and liabilities in foreign currencies (115) 8,181,479
NET GAIN (LOSS) 11,245,787
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 11,298,322
FROM OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED MARCH 31,
SEPTEMBER 30, 1995
1995
INCREASE (DECREASE) IN NET ASSETS
Operations $ 52,535 $ 140,768
Net investment income
Net realized gain (loss) 3,064,308 (631,583)
Change in net unrealized appreciation (depreciation) 8,181,479 3,502,251
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 11,298,322 3,011,436
FROM OPERATIONS
Distributions to shareholders (182,326) (68,245)
From net investment income
From net realized gain - (1,283,877)
TOTAL DISTRIBUTIONS (182,326) (1,352,122)
Share transactions 7,246,902 10,274,501
Net proceeds from sales of shares
Reinvestment of distributions 178,842 1,329,944
Cost of shares redeemed (5,288,445) (6,580,719)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 2,137,299 5,023,726
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS 13,253,295 6,683,040
NET ASSETS
Beginning of period 39,802,506 33,119,466
End of period (including undistributed net investment $ 53,055,801 $ 39,802,506
income of $50,042 and $179,833, respectively)
OTHER INFORMATION
Shares
Sold 86,274 151,903
Issued in reinvestment of distributions 2,370 19,889
Redeemed (63,588) (97,417)
Net increase (decrease) 25,056 74,375
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED MARCH 31,
ENDED
SEPTEMBER 30, 1995 1994 D 1993 1992 1991
1995
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 72.44 $ 69.72 $ 68.44 $ 68.13 $ 64.84 $ 58.60
beginning of period
Income from
Investment
Operations
Net investment .09 .27 .61 1.20 .81 1.39
income
Net realized and 20.15 5.22 7.92 9.18 9.21 8.10
unrealized gain
(loss)
Total from 20.24 5.49 8.53 10.38 10.02 9.49
investment
operations
Less Distributions (.33) (.14) (.75) (1.25) (1.30) (.83)
From net
investment
income
From net realized - (2.63) (6.50) (8.82) (5.43) (2.42)
gain
Total distributions (.33) (2.77) (7.25) (10.07) (6.73) (3.25)
Net asset value, end $ 92.35 $ 72.44 $ 69.72 $ 68.44 $ 68.13 $ 64.84
of period
TOTAL RETURN B, C 28.04% 8.21% 12.94% 17.06% 16.48% 17.26%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 53,056 $ 39,803 $ 33,119 $ 24,886 $ 19,824 $ 14,808
period (in millions)
Ratio of expenses to .97% .99% 1.00% 1.00% 1.05% 1.06%
average net assets A
Ratio of expenses to .96% .96% .99% 1.00% 1.05% 1.06%
average net assets A
after expense
reductions
Ratio of net .22% .39% 1.07% 2.11% 1.57% 2.47%
investment income A
to average net
assets
Portfolio turnover rate 97% 120% 132% 155% 172% 135%
A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN
REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO FINANCIAL
STATEMENTS).
D 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, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN
RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES.
NOTES TO FINANCIAL STATEMENTS
For the period ended September 30, 1995
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 issue an unlimited number of shares. The following summarizes
the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
of their purchase date are valued at amortized cost or original cost plus
accrued interest, both of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases and
sales of securities, income receipts, and expense payments are translated
into U.S. dollars at the prevailing exchange rate on the respective dates
of the transactions.
Net realized gains and losses on foreign currency transactions represent
net gains and losses from sales and maturities of forward currency
contracts, disposition of foreign currencies, currency gains and losses
realized between the trade and settlement dates on securities transactions,
and the difference between the amount of net investment income accrued and
the U.S. dollar amount actually received. The effects of changes in foreign
currency exchange rates on investments in securities are included with the
net realized and unrealized gain or loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes substantially all of its taxable income for
its fiscal year. The schedule of investments includes information regarding
income taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Investment income
is recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
generally accepted accounting principles. These differences, which may
result in distribution reclassifications, are primarily due to differing
treatments for litigation proceeds, foreign currency transactions, market
discount, partnerships, non-taxable dividends, capital loss carryforwards,
and losses deferred due to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). Undistributed net investment income and
accumulated undistributed net realized gain (loss) on investments and
foreign currency transactions may include temporary book and tax basis
differences which will reverse in a subsequent period. Any taxable income
or gain remaining at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may use foreign currency
contracts to facilitate transactions in foreign securities and to manage
the fund's currency exposure. Contracts to buy generally are used to
acquire exposure to foreign currencies, while contracts to sell are used to
hedge the fund's investments against currency fluctuations. Also, a
contract to buy or sell can offset a previous contract. Losses may arise
from changes in the value of the foreign currency or if the counterparties
do not perform under the contracts' terms.
The U.S. dollar value of forward foreign currency contracts is determined
using forward currency exchange rates supplied by a quotation service.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and any realized gain (loss) is
recognized on the date of offset; otherwise, gain (loss) is recognized on
settlement date.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other affiliated
entities of Fidelity Management & Research Company (FMR), the fund's
investment advisor, may transfer uninvested cash balances into one or more
joint trading accounts. These balances are invested in one or more
repurchase agreements that mature in 60 days or less from the date of
purchase, and are collateralized by U.S. Treasury or Federal Agency
obligations.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying U.S. Treasury or Federal Agency securities, the market
value of which is required to be at least equal to the repurchase price.
For term repurchase agreement transactions, the underlying securities are
marked-to-market daily and maintained at a value at least equal to the
repurchase price.
2. OPERATING POLICIES - CONTINUED
REPURCHASE AGREEMENTS - CONTINUED
FMR is responsible for determining that the value of the underlying
securities remains in accordance with the market value requirements stated
above.
RESTRICTED SECURITIES. The fund is permitted to invest in securities that
are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from registration
or to the public if the securities are registered. Disposal of these
securities may involve time-consuming negotiations and expense, and prompt
sale at an acceptable price may be difficult. At the end of the period,
restricted securities (excluding 144A issues) amounted to $19,077,000 or 0%
of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $23,742,275,000 and $22,316,249,000, respectively, of which U.S.
government and government agency obligations aggregated $3,184,563,000 and
$1,771,867,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the
average net assets of the fund. The group fee rate is the weighted average
of a series of rates and is based on the monthly average net assets of all
the mutual funds advised by FMR. The rates ranged from .2700% to .5200% for
the period. In the event that these rates were lower than the contractual
rates in effect during the period, FMR voluntarily implemented the above
rates, as they resulted in the same or a lower management fee. The annual
individual fund fee rate is .30%. The basic fee is subject to a performance
adjustment (up to a maximum of (plus/minus) .20%) based on the fund's
investment performance as compared to the appropriate index over a
specified period of time. For the period, the management fee was equivalent
to an annualized rate of .75% of average net assets after the performance
adjustment.
SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an
affiliate of FMR and the general distributor of the fund, received sales
charges of $14,245,000 on sales of shares of the fund.
TRANSFER AGENT FEES. Fidelity Service Co. (FSC), an affiliate of FMR, is
the fund's transfer, dividend disbursing and shareholder servicing agent.
FSC receives account fees and asset-based fees that vary according to
account size and type of account. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
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 $10,625,000 for the period.
5. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$2,086,000 under this arrangement.
6. TRANSACTIONS WITH
AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions during the period with
companies which are or were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
DOLLAR AMOUNTS IN THOUSANDS PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
ADAPTEC, Inc. $ - $ 35,913 $ - $ -
ADC Telecommunications, Inc. 22,262 - - 163,072
AGCO Corp. 3,223 7,755 38 81,238
AK Steel Holding Corp. 4,329 - - 76,877
AMR Corp. 18,377 74,561 - -
Acclaim Entertainment, Inc. 41,834 - - 115,463
Advanced Micro Devices, Inc. - - 96 279,061
Agrium, Inc. 1,766 - 165 45,581
Airborne Freight Corp. - 18,508 114 -
Air Canada, Inc. - 8,958 - -
Alantec Corp. - 10,965 - -
Allen Group, Inc. (The) - 5,010 213 71,481
Altera Corp. 15,725 18,024 - 145,895
Amdahl Corp. 10,308 27,265 - -
America Online, Inc. 139 24,948 - -
American President Companies Ltd. - 2,580 146 -
Ampex Corp. Class C - - - -
Amphenol Corp. Class A 4,814 27,056 - 72,571
Analog Devices, Inc. 12,955 2,732 - 156,091
Analogic Corp. - 82 49 24,916
Anixter International, Inc. - 4,058 - 107,165
Antec Corp. 4,209 6,535 - -
Applied Materials, Inc. 125,416 92,166 - 786,497
Arkansas Best Corp. - 11,390 - -
Armstrong World Industries, Inc. 6,981 - - 111,605
Arrow Electronics, Inc. 3,094 - - 254,035
Ascend Communications, Inc. 33,607 12,368 - 150,152
Atmel Corp. 53,017 20,124 - 305,987
Augat, Inc. - - 152 35,855
Avid Technology, Inc. - 1,421 - -
Avnet, Inc. 3,099 - 1,219 209,770
Barnes & Noble, Inc. 1,011 6,119 - -
Belden, Inc. 117 - 200 52,521
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Black & Decker Corp. $ 90,683 $ - $ 1,573 $ 292,431
Block (H & R), Inc. - 24,592 - -
Bombardier, Inc. Class B - 6,983 452 159,383
Borg-Warner Automotive, Inc. - 1,210 366 -
Bowne & Co., Inc. 1,180 142 302 33,919
Brown Group, Inc. - 6,706 - -
Brunswick Corp. - 93,271 688 -
CSX Corp. 73,263 - 6,645 639,476
California Microwave Corp. 10,570 22,316 - -
Cardinal Health, Inc. 6,674 27,995 162 133,401
Carlisle Companies, Inc. 2,342 - 388 39,040
Carpenter Technology Corp. 5,096 137 - 37,435
Cascade Communications Corp. 4,025 8,837 - 110,881
Case Corp. 33,056 - 633 250,499
Caterpillar, Inc. 292,991 - 3,872 823,749
Cellstar Corp. - 1,507 - -
Centex Construction Products - - - 21,197
Centex Corp. - 11,217 296 76,360
Chrysler Corp. 47,350 - 9,563 1,057,949
Cincinnati Milacron, Inc. 21,242 896 609 106,829
Cirrus Logic, Inc. 37,356 47,313 - 200,140
Clark Equipment Co. - 57,974 - -
Cobra Golf, Inc. 266 27,671 - -
Comair Holdings, Inc. 8,383 - - 47,903
Comdisco, Inc. 33,788 - - 86,864
Compuware Corp. - 17,031 - -
Conner Peripherals, Inc. 25,122 - - 79,034
Conrail, Inc. 8,805 81,358 5,746 415,223
Conseco, Inc. 42,030 - 80 104,876
Consolidated Freightways, Inc. - 40,847 363 -
Continuum Co., Inc. - - - 67,191
Cypress Semiconductor Corp. 43,910 31,412 - 130,413
Cyrix Corp. 2,935 35,998 - -
DSC Communications Corp. 13,508 - - 440,162
Deere & Co. 70,306 - 5,756 425,136
Dell Computer Corp. 25,009 4,228 - 352,198
Digital Equipment Corp. 126,789 131,680 - 439,624
Duriron Co., Inc. 98 - 110 28,086
Echlin, Inc. 8,825 4,963 1,837 164,700
Electroglas, Inc. - 8,330 - 43,845
Electronic Arts, Inc. 17,192 - - 131,811
Equitable Companies, Inc. - 35,105 536 -
Equitable Iowa Companies 12,405 - 450 72,990
Exabyte - 13,526 - -
FirstFed Michigan Corp. - - 361 40,922
Fluke Corp. 944 - 64 16,165
Fore Systems, Inc. 1,420 44,891 - -
Gateway 2000, Inc. - 43,780 - 142,556
General DataComm Industries, Inc. - 14,578 - -
General Instrument Corp. - 103,663 - -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Glenayre Technologies, Inc. $ 20,161 $ 9,686 $ - $ 152,507
Global Marine, Inc. 8,691 - - 67,849
Greenfield Industries, Inc. 10,619 - 77 39,683
Gymboree Corp. - 9,349 - -
HBO & Co. 32,312 2,568 164 145,956
Hanna (M.A.) Co. 1,947 - 939 91,710
Harris Corp. - - 2,562 216,295
Health Management Associates, Inc.
Class A - 4,973 - -
Heilig-Meyers Co. 6,102 - - 64,033
Host Marriott Corp. 32,352 - - 196,693
IDEX Corp. 3,609 - 284 38,494
Informix Corp. 2,019 23,197 - -
Ingersoll-Rand Co. 126,461 27,981 1,454 294,214
Inland Steel Industries, Inc. 41,293 40,472 378 77,923
Integrated Device Technology, Inc. 11,001 55,551 - -
Interim Services, Inc. 15,307 3,528 - 25,944
International Rectifier Corp. 470 18,586 - -
Itel Corp. - - - -
KLA Instruments Corp. 3,182 24,786 - -
KLM Royal Dutch Airlines Ord. 20,617 - 3,808 170,711
Kansas City Southern Industries, Inc. - 28,983 153 -
Kaydon Corp. 2,351 982 203 26,164
Kelly Services, Inc. Class A - 12,447 309 -
Kemet Corp. 3,400 1,774 - 67,212
Kennametal, Inc. - - 796 96,130
Kirby Corp. - 20,143 - 23,729
Komag, Inc. 5,570 27,760 - 91,087
LSI Logic Corp. 36,461 - - 739,396
Lafarge Corp. 8,793 - 1,116 104,012
Lam Research Corp. 3,039 38,268 - 103,995
Landstar System, Inc. 11,376 1,205 - 29,341
Lattice Semiconductor Corp. 6,690 23,280 - 46,613
Leggett & Platt, Inc. 59,528 - 618 167,258
Linear Technology Corp. 36,592 16,274 389 203,645
Lotus Development Corp. 30,969 120,514 - -
Lowe's Companies, Inc. 24,814 169,526 1,138 -
Mac Frugals Bargains Closeouts, Inc. - 23,037 - -
Magna International, Inc. Class A 72,083 95,100 1,534 216,524
Manpower, Inc. 2,455 8,605 450 207,776
Mark IV Industries, Inc. 20,805 - 305 119,323
Marshall Industries - - - 61,627
Maxim Integrated Products, Inc. 11,204 10,085 - 137,189
Medusa Corp. - - 411 46,497
Merrill Lynch & Co., Inc. - 13,064 4,799 566,519
Michael's Stores, Inc. - 16,885 - -
Micro Warehouse, Inc. 4,836 14,975 - -
Microchip Technology, Inc. 14,714 9,440 - 120,655
Micron Technology, Inc. 185,618 100,401 1,405 935,667
Mueller Industries, Inc. - 2,995 - 30,311
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
NACCO Industries, Inc. Class A $ - $ - $ 295 $ 48,619
National Semiconductor Corp. 2,961 4,258 - 337,757
Netmanage, Inc. - - - 56,138
Network Equipment Technologies 1,019 - - 65,584
Network General Corp. 14,118 13,458 - 61,809
Nine West Group, Inc. - 5,334 - -
Nokia Corp. AB - - - -
Northstar Energy Corp. - 1,467 - 18,092
Novellus Systems, Inc. 10,781 - - 74,963
Nucor Corp. - 19,498 - -
Oak Industries, Inc. 760 7,506 - 44,392
Oakwood Homes Corp. 4,652 40 77 71,022
Omnicom Group, Inc. - 13,837 1,874 182,613
Oracle Systems Corp. 5,262 107,082 - -
Parametric Technology Corp. 88,428 - - 311,565
Parker-Hannifin Corp. 17,238 - 2,357 249,871
Pioneer Standard Electronics, Inc. - - 52 39,141
Pittston Company Services Group - 58,042 185 -
Premdor, Inc. - - - 23,550
Prime Hospitality Corp. 15,034 - - 31,545
Pulte Corp. - - 331 78,219
Quanex Corp. - 18,944 198 -
Quantum Corp. 9,044 36,023 - -
Read Rite Corp. 10,895 - - 155,406
Renaissance Energy Ltd. 58,420 5,192 - 166,857
Revco (D.S.), Inc. 1,394 34,554 - -
Reynolds & Reynolds Co. Class A - 287 - -
Robert Half International, Inc. 1,841 6,911 - 86,217
SafeCard Services, Inc. - - - -
Scientific-Atlanta, Inc. - 45,506 86 -
Seagate Technology - - - 306,245
Shaw Industries, Inc. 25,105 - - 124,732
Silicon Graphics, Inc. 54,475 - - 405,068
Smith (A.O.) Corp. Class B 52 - 559 48,303
Snyder Oil Corp. - 4,368 136 22,870
Softkey International, Inc. - - - -
Southdown, Inc. - - - 27,113
Standex International Corp. - - 295 31,606
Staples, Inc. 3,470 16,220 - -
Sterling Software, Inc. - 21,664 - -
Stormedia, Inc. Class A - - - 12,901
Stratacom, Inc. 4,634 32,697 - -
SunAmerica, Inc. 10,718 17,964 630 119,500
Swift Transportation Co., Inc. 1,888 2,654 - 38,642
Symbol Technologies, Inc. 2,064 21,661 - 59,890
TNT Freightways Corp. - 25,051 182 -
TRINOVA Corp. - - 1,036 97,149
Tandem Computers, Inc. 49,830 83,258 - -
Tandy Corp. 12,574 - 615 210,645
Tecumseh Products Co. Class A - - - -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
DOLLAR AMOUNTS IN THOUSANDS PURCHASES SALES DIVIDEND MARKET
AFFILIATES COST COST INCOME VALUE
Tektronix, Inc. $ 12,466 $ - $ 936 $ 196,948
Tellabs, Inc. 12,764 76,016 - 261,992
Teradyne, Inc. 53,684 22,523 - 266,177
Texas Industries, Inc. - - 250 65,879
Texas Instruments, Inc. 177,836 67,268 1,846 908,187
3Com Corp. 45,445 60,297 - 410,078
Toll Brothers, Inc. 9,054 - - 59,432
Tommy Hilfiger 1,750 - - 115,336
Toro Co. - 11,103 196 22,170
Tosco Corp. - 22,204 - -
UAL Corp. 73,480 29,870 - 154,779
UCAR International, Inc. - - - 27,250
USG Corp. - - - 126,224
USLIFE Corp. - 6,785 1,018 59,533
United Companies Financial Corp. 4,339 863 81 53,795
United Dominion Industries, Ltd. 4,668 23,132 - -
VLSI Technology, Inc. 1,050 18,197 - -
Varian Associates, Inc. - - 476 180,089
Varity Corp. - - - 190,820
Vicor Corp. 1,048 147 - 40,364
WHX Corp. 1,714 - - 19,345
Western Digital Corp. - 15,750 - 56,086
Wyle Laboratories - - 172 55,021
XTRA Corp. - 41,932 - -
Xilinx, Inc. 2,074 8,107 - -
TOTAL $ 3,119,316 $ 3,352,785 $ 80,419 $ 23,058,432
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 September 30, 1995, and the related statement of operations for the six
months then ended, the statement of changes in net assets for the six
months ended September 30, 1995 and for the year ended March 31, 1995 and
the financial highlights for the six months ended September 30, 1995 and
each of the five years in the period ended March 31, 1995. 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 September 30, 1995 by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Magellan Fund as of September 30, 1995, the results of its
operations for the six months then ended, the changes in its net assets for
the six months ended September 30, 1995 and for the year ended March 31,
1995, and the financial highlights for the six months ended September 30,
1995 and each of the five years in the period ended March 31, 1995, in
conformity with generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
November 1, 1995
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call -
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES.
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
William J. Hayes, Vice President
Jeffrey Vinik, Vice President
Arthur S. Loring, Secretary
Kenneth A. Rathgeber, Treasurer
Robert H. Morrison, Manager,
Security Transactions
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox*
Phyllis Burke Davis*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Marvin L. Mann*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY'S GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Export Fund
Fidelity Fifty
Growth Company Fund
Large Cap Fund
Low-Priced Stock Fund
Magellan(registered trademark) Fund
Mid-Cap Stock Fund
New Millennium(trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
(registered trademark)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
