(2_FIDELITY_LOGOS)FIDELITY
MAGELLAN(registered trademark)
FUND
SEMIANNUAL REPORT
SEPTEMBER 30, 1996
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 35 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 39 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.
To reduce expenses and demonstrate respect for our environment, we have
initiated a project through which we will begin eliminating duplicate
copies of most financial reports and prospectuses to most households, even
if they have more than one account in the fund. If additional copies of
financial reports, prospectuses or historical account information are
needed, please call 1-800-544-6666.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Although stocks have managed to post solid returns through the first nine
months of 1996, signs of strength in the economy have led to inflation
fears, causing some uncertainty in both the stock and bond markets so far
this year. In 1995, both stock and bond markets posted strong results,
while the year before, stocks posted below-average returns and bonds had
one of the worst years in history.
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. You also can help to manage some of the risks of investing
through diversification. A stock fund is already diversified because it
invests in many issues. You can diversify even further by placing some of
your money in several different types of stock funds or in other investment
categories, such as bonds.
If you have a short investment time horizon, you might want to consider
moving some of your investment into a money market fund, which seeks income
and a stable share price by investing in high-quality, short-term
investments. Of course, there is no assurance that a money market fund will
achieve its goal, and it is important to remember that money market funds
are not insured or guaranteed by any agency of the U.S. government.
Finally, no matter what your investment horizon or portfolio diversity, it
makes good sense to follow a regular investment plan - investing a certain
amount of money at the same time each month or quarter - and to review your
portfolio periodically. A periodic investment plan will not, of course,
assure a profit or protect against a loss.
If you have any questions, please call us at 1-800-544-8888. We stand ready
to provide the information you need to make the investments that are right
for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. A fund's total
return includes changes in 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, 1996 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Magellan 2.69% 3.00% 101.77% 340.81%
Magellan (incl. 3% sales charge) -0.39% -0.09% 95.71% 327.58%
S&P 500(registered trademark) 7.72% 20.33% 103.18% 304.42%
Growth Funds Average 7.53% 15.89% 92.28% 260.43%
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 500 Index -
a widely recognized, unmanaged index of common stocks. To measure how the
fund's performance stacked up against its peers, you can compare it to the
growth funds average, which reflects the performance of 714 mutual funds
with similar objectives tracked by Lipper Analytical Services, Inc. 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, 1996 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Magellan 3.00% 15.07% 15.99%
Magellan (incl. 3% sales charge) -0.09% 14.37% 15.64%
S&P 500 20.33% 15.23% 14.95%
Growth Funds Average 15.89% 13.69% 13.28%
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
IMAHDR PRASUN SHR__CHT 19960930 19961009 151627 S00000000000001
Magellan SP Standard & Poor 500
00021 SP001
1986/09/30 9700.00 10000.00
1986/10/31 10206.79 10577.00
1986/11/30 10309.33 10834.02
1986/12/31 10156.45 10557.75
1987/01/31 11476.85 11979.88
1987/02/28 12327.92 12453.09
1987/03/31 12484.37 12812.98
1987/04/30 12284.11 12698.95
1987/05/31 12296.64 12809.43
1987/06/30 12805.69 13456.30
1987/07/31 13431.49 14138.54
1987/08/31 13970.90 14665.91
1987/09/30 13627.64 14344.72
1987/10/31 10110.98 11254.87
1987/11/30 9347.41 10327.47
1987/12/31 10258.07 11113.39
1988/01/31 10664.81 11581.26
1988/02/29 11312.02 12120.95
1988/03/31 11281.32 11746.41
1988/04/30 11483.41 11876.80
1988/05/31 11452.71 11980.13
1988/06/30 12235.50 12530.01
1988/07/31 12156.20 12482.40
1988/08/31 11769.92 12058.00
1988/09/30 12263.64 12571.67
1988/10/31 12519.45 12921.16
1988/11/30 12350.61 12736.39
1988/12/31 12593.29 12959.27
1989/01/31 13614.93 13907.89
1989/02/28 13393.40 13561.59
1989/03/31 13792.15 13877.57
1989/04/30 14485.41 14597.82
1989/05/31 15250.20 15189.03
1989/06/30 15117.88 15102.45
1989/07/31 16388.07 16466.20
1989/08/31 16816.76 16788.94
1989/09/30 17107.85 16720.11
1989/10/31 16570.66 16332.20
1989/11/30 16843.22 16665.38
1989/12/31 16948.61 17065.35
1990/01/31 15855.51 15920.26
1990/02/28 16181.18 16125.63
1990/03/31 16594.63 16552.96
1990/04/30 16175.51 16139.14
1990/05/31 17614.21 17712.70
1990/06/30 17690.77 17592.26
1990/07/31 17490.54 17535.96
1990/08/31 15776.82 15950.71
1990/09/30 14775.68 15173.91
1990/10/31 14593.12 15108.66
1990/11/30 15697.32 16084.68
1990/12/31 16184.46 16533.45
1991/01/31 17315.84 17254.30
1991/02/28 18819.34 18487.99
1991/03/31 19458.56 18935.40
1991/04/30 19530.58 18980.84
1991/05/31 20644.20 19800.81
1991/06/30 19431.11 18893.94
1991/07/31 20638.01 19774.39
1991/08/31 21272.41 20243.05
1991/09/30 21191.95 19904.99
1991/10/31 21476.65 20171.71
1991/11/30 20415.20 19358.79
1991/12/31 22824.68 21573.44
1992/01/31 22834.66 21172.17
1992/02/29 23297.07 21447.41
1992/03/31 22664.99 21029.19
1992/04/30 23000.99 21647.45
1992/05/31 23221.37 21753.52
1992/06/30 22812.35 21429.39
1992/07/31 23452.55 22305.85
1992/08/31 22943.95 21848.58
1992/09/30 23207.14 22106.40
1992/10/31 23370.75 22183.77
1992/11/30 23961.15 22940.24
1992/12/31 24425.73 23222.40
1993/01/31 25069.22 23417.47
1993/02/28 25592.55 23735.95
1993/03/31 26530.66 24236.77
1993/04/30 26790.38 23650.24
1993/05/31 27846.31 24284.07
1993/06/30 28234.64 24354.50
1993/07/31 28546.11 24257.08
1993/08/31 30224.82 25176.42
1993/09/30 30552.47 24982.56
1993/10/31 30572.70 25499.70
1993/11/30 29565.47 25257.45
1993/12/31 30448.52 25563.07
1994/01/31 31651.85 26432.21
1994/02/28 31419.78 25715.90
1994/03/31 29962.89 24594.69
1994/04/30 30263.72 24909.50
1994/05/31 29915.08 25318.02
1994/06/30 28617.15 24697.72
1994/07/31 29574.93 25507.81
1994/08/31 30975.81 26553.63
1994/09/30 30170.19 25903.07
1994/10/31 31190.64 26485.88
1994/11/30 29480.95 25521.27
1994/12/31 29897.18 25899.75
1995/01/31 29592.84 26571.33
1995/02/28 31253.29 27606.81
1995/03/31 32421.43 28421.49
1995/04/30 33929.72 29258.50
1995/05/31 34878.24 30427.97
1995/06/30 37534.91 31134.81
1995/07/31 40416.33 32167.24
1995/08/31 40766.95 32247.98
1995/09/30 41513.16 33608.84
1995/10/31 40452.29 33488.86
1995/11/30 41351.33 34959.02
1995/12/31 40906.33 35632.33
1996/01/31 41496.28 36845.26
1996/02/29 41225.10 37186.81
1996/03/31 41639.01 37544.92
1996/04/30 41905.44 38098.33
1996/05/31 42094.84 39080.89
1996/06/30 42055.48 39229.79
1996/07/31 40098.89 37496.61
1996/08/31 41110.92 38287.42
1996/09/30 42758.28 40442.23
IMATRL PRASUN SHR__CHT 19960930 19961009 151629 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested
in Fidelity Magellan Fund on September 30, 1986, and a 3% sales charge was
paid. As the chart shows, by September 30, 1996, the value of the
investment would have grown to $42,758 - a 327.58% increase on the initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends reinvested, the same $10,000 investment in the S&P
500 would have grown to $40,442 - a 304.42% 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
During the six months ended
September 30, 1996, the Dow
Jones Industrial Average moved
closer to 6000 and the current bull
market celebrated its sixth birthday
with stock prices continuing to
climb. For the six-month period, the
Standard & Poor's 500 Index
returned 7.72%. However, the rise
did not go uninterrupted. Stock and
bond markets were rattled in the
spring and summer by stronger
than expected economic data that
investors largely regarded as a
prelude to higher interest rates.
Stock investors feared that
higher rates coupled with the
expense of a tight labor market
would have a negative effect on
corporate earnings. In early July,
when the earnings
announcements of several
high-profile companies proved
disappointing, heavy selling
ensued - particularly pushing
down the stock prices of
technology and
small-capitalization companies.
Later, however, the market
shrugged off these economic
concerns and resumed its rally -
particularly in technology and
some small-cap names - as it
appeared the economy would
continue to grow at a slow, steady
pace with little evidence of
inflationary pressures. U.S. stocks
generally outperformed their
overseas counterparts. For the six
months ended September 30,
1996, the Morgan Stanley Capital
International Europe, Australasia,
Far East (EAFE) Index - which
measures stock performance in
Europe, Australia and the Far East
- - had a total return of 1.45%.
NOTE TO SHAREHOLDERS:
Robert Stansky became Portfolio Manager of Fidelity Magellan Fund on June
3, 1996.
Q. BOB, HOW HAS THE FUND PERFORMED?
A. The fund's performance lagged both its peer group and the broad stock
market during the past six- and 12-month periods. For the six months ended
September 30, 1996, the fund had a total return of 2.69%, compared with a
total return of 7.53% for the growth funds average during the same period,
according to Lipper Analytical Services. The fund had a total return of
3.00% for the 12 months ended September 30, while the growth funds average
total return was 15.89% during the same period.
Q. WHAT FACTORS HAVE INFLUENCED THE FUND'S PERFORMANCE?
A. Although I took over management of the fund at the beginning of June, I
can point to several reasons why the fund underperformed during the
six-month period. First, the fund made significant investments in 30-year
Treasury bonds and 10-year Treasury notes in late 1995 and early 1996. In
addition, the fund had a substantial position in short-term investments -
often referred to as its "cash position" - early in the year after reducing
investments in technology stocks in late 1995. The bond and cash positions
not only had the effect of holding the fund back while the broad stock
market rose in 1996, the bond stake negatively impacted performance as
investors' fear of higher interest rates drove bond yields higher and
prices lower. In terms of stocks, the fund was hurt by a few sizeable
investments in companies whose stocks fell on the heels of surprisingly
disappointing earnings; examples included Digital Equipment Corp. and AT&T.
In addition, the fund had a substantial stake in cyclical stocks -
companies that tend to move in tandem with the economy. While several of
the fund's cyclicals made modest gains during the period, they didn't
perform nearly as well as many of the market's growth stocks - companies
with more steadily increasing earnings - in sectors such as consumer
nondurables and health care. That lack of firepower among the fund's
largest holdings somewhat limited its returns.
Q. INDEED, YOU'VE MADE SOME CHANGES SINCE TAKING OVER THE FUND. LET'S START
WITH THE BONDS, WHICH MADE UP ABOUT 10% OF THE PORTFOLIO AT THE END OF THE
PERIOD, DOWN FROM 19% SIX MONTHS AGO. WHY HAVE YOU REDUCED THESE
INVESTMENTS?
A. Although the performance of the bonds has improved recently as interest
rate fears have eased, I slowly and steadily cut back the fund's stake. As
far as why, the simple answer is that I found more attractive investments
in stocks, especially during the summer. In the past, I generally haven't
considered making a significant investment in bonds unless bond yields
exceeded the long-term average annual return of the stock market. The stock
market has returned an average of about 12% each year, and bond yields were
hovering at around 7% at the end of the period, which is why I didn't find
bonds as attractive relative to stocks. That said, I have reduced the bond
investments opportunistically. My goal has been to get the best price for
them in the marketplace, taking advantage of "up" days in the bond market
to sell.
Q. HOW WOULD YOU CHARACTERIZE THE PACE AT WHICH YOU'VE RESTRUCTURED THE
PORTFOLIO OVERALL?
A. I've moved deliberately, as I said I would when I took over the fund.
When making changes, I've carefully considered both a company's current
business conditions and its earnings potential over the next couple of
years. It's important for shareholders to realize that making changes
involves both careful buying of stocks and careful selling. For each stock
position that I wanted to reduce, I've tried to be patient until the fund
can obtain what I feel is the highest possible price for the shares.
Conversely, when I've bought new stocks for the fund, I've tried to do so
when prices have dipped. For example, I was able to take advantage of the
market drop in July and early August to buy shares in some new and existing
positions.
Q. WHAT HAVE YOU BEEN BUYING?
A. I've been searching for companies that I believe will show substantial
earnings growth over the next year or two and are selling at reasonable
valuations - prices relative to earnings. Toward the end of the period, I
found many opportunities in the technology sector, which has increased from
3.5% of the fund's investments six months ago to more than 10% on September
30. Still, the fund remained slightly underweighted in this sector relative
to the broad market, which consisted of more than 11% technology stocks at
the end of the period. Companies such as microchip manufacturer Intel,
computer network equipment maker Cisco, database software manufacturer
Oracle, and IBM performed very strongly during the last few months of the
period, which boosted the fund's performance as I acquired increasingly
larger stakes in these companies. Although the technology sector offered a
lot of exciting companies with fast-growing earnings, there does tend to be
a higher degree of risk in the sector relative to the broad market. That
risk is largely tied to the high degree of operating leverage in the
sector, which is driven by individual company product cycles. However,
given the earnings potential of many technology companies at the end of the
period, the fund can ill afford to stay away. The key is staying on top of
each company's business prospects and recognizing potential negatives.
Q. ENERGY REMAINED THE FUND'S LARGEST SECTOR, AT MORE THAN 13% AT THE END
OF THE PERIOD. HOW DID THESE STOCKS DO?
A. For the most part, energy and energy service stocks did quite well over
the past six months. Increasing demand and tight supplies helped drive
crude oil prices higher. In addition, companies such as Royal Dutch
Petroleum and British Petroleum had taken significant actions to cut costs
and streamline operations, which has had positive effects on profits.
Q. EARLIER, YOU MENTIONED THE DISAPPOINTING PERFORMANCE OF CYCLICAL STOCKS.
DESPITE THE CHANGES YOU'VE MADE TO THE FUND, SEVERAL OF THE FUND'S TOP 10
STOCKS REMAIN CYCLICALS . . .
A. That's true. Despite mostly favorable business prospects for companies
such as Caterpillar, CSX, Deere, Chrysler and General Motors, their stock
performance has been lackluster. I believe this was tied to investor
skepticism that earnings for these companies may have already peaked for
this economic cycle. The market was reluctant to reward these stocks with
higher valuations - despite respectable earnings - until the companies can
prove that their best earnings aren't behind them. As an end result, many
of these stocks remained quite cheap relative to the market during the past
six months, again, despite generally favorable business prospects.
Q. LET'S DISCUSS YOUR OUTLOOK OVERALL. HOW DO YOU VIEW THE NEXT SIX MONTHS?
A. The market certainly has become more expensive during 1996. The
price-to-earnings ratios of many growth stocks were at or near five-year
highs at the end of the period. In this environment, I want to be
especially careful not to pay too much when buying a stock. That said, I
believe stock prices follow earnings over time, and I'll continue to search
for those companies that have excellent earnings prospects. It all comes
down to doing well on the fundamental company-by-company homework - or what
I call the basic blocking and tackling. There always will be companies of
all sizes that achieve success; my job is to find them. Certainly, every
company is affected to some degree by not only the U.S. economy, but also
by other countries' economies. If world economies slow, or we begin to see
widespread interest rate hikes, the entire U.S. market could be negatively
impacted. That's why it's so important to stay on top of the business
prospects of each and every company in which the fund is invested.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER
ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER.
THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND
OTHER CONDITIONS.
FUND FACTS
GOAL: to increase the value of
the fund's shares over the long
term by investing mainly in
equity securities with growth
potential
FUND NUMBER: 021
TRADING SYMBOL: FMAGX
START DATE: May 2, 1963
SIZE: as of September 30, 1996,
more than $52.9 billion
MANAGER: Robert Stansky,
since June 1996; manager,
Fidelity Growth Company
Fund and Fidelity Advisor
Equity Growth, 1987-1996;
Fidelity Emerging Growth
Fund 1990-1991; Fidelity
Select Defense & Aerospace
Portfolio 1984-1985; joined
Fidelity
in 1983
(checkmark)
BOB STANSKY ON HIS
INVESTING STYLE:
"My style is very
straightforward. I take a
bottom-up approach, closely
examining the business
prospects of companies and
building the fund
stock-by-stock. It all ties back
to my core belief that stock
prices follow earnings over
time. The biggest risk I face
when I invest in a stock is that
the company doesn't produce
the earnings growth I'm
counting on. The second
biggest risk is paying too
much for a stock going in.
That's why valuations -
stock prices relative to
earnings - also are
important, as are other
factors.
"I always have believed that
it is the effectiveness of stock
picking - not the fund's size,
the market environment, the
direction of interest rates or
any other factor - that is the
primary driver of how a fund
performs over the long term.
To that end, I have the
backing of Fidelity's entire
equity research team, including
more than 160 analysts and
associates who follow more
than 4,000 companies around
the world. These resources
allow me a great deal of
flexibility in running the fund. As
I have in the past, I'm able to
search for opportunities across
a wide variety of market
sectors and industries, both in
the U.S. and overseas. "
INVESTMENT CHANGES
TOP TEN STOCKS AS OF SEPTEMBER 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Caterpillar, Inc. 2.0 1.9
CSX Corp. 1.5 1.2
Chrysler Corp. 1.5 2.1
Intel Corp. 1.4 0.0
Royal Dutch Petroleum Co. ADR 1.3 0.9
General Motors Corp. 1.3 2.1
Deere & Co. 1.3 1.4
General Electric Co. 1.1 0.2
International Business Machines 1.0 0.1
Corp.
Cisco Systems, Inc. 1.0 0.2
TOP FIVE MARKET SECTORS AS OF SEPTEMBER 30, 1996
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE MARKET
SECTORS
6 MONTHS AGO
Energy 13.1 10.7
Durables 10.6 9.4
Technology 10.1 3.5
Industrial Machinery & Equipment 9.7 8.4
Finance 7.6 8.0
ASSET ALLOCATION (% OF FUND'S INVESTMENTS)
AS OF SEPTEMBER 30, 1996 * AS OF MARCH 31, 1996 **
Row: 1, Col: 1, Value: 0.0
Row: 1, Col: 2, Value: 2.5
Row: 1, Col: 3, Value: 9.800000000000001
Row: 1, Col: 4, Value: 44.0
Row: 1, Col: 5, Value: 44.5
Row: 1, Col: 1, Value: 10.7
Row: 1, Col: 2, Value: 19.0
Row: 1, Col: 3, Value: 35.0
Row: 1, Col: 4, Value: 35.3
Stocks 89.0%
Bonds 9.8%
Short-term
investments 1.2%
FOREIGN
INVESTMENTS 11.1%
Stocks and
equity futures 70.3%
Bonds 19.0%
Short-term
investments 10.7%
FOREIGN
INVESTMENTS 7.1%
*
**
INVESTMENTS SEPTEMBER 30, 1996
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 88.9%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 0.8%
Boeing Co. 4,084,300 $ 385,966
Flightsafety International, Inc. 500,000 22,312
Harsco Corp. 321,900 20,280
Sundstrand Corp. 42,200 1,646
430,204
BASIC INDUSTRIES - 6.1%
CHEMICALS & PLASTICS - 1.8%
Atlantis Group, Inc. (Trivest/Winston) (a)(h) 77,269 531
Dow Chemical Co. 196,900 15,801
du Pont (E.I.) de Nemours & Co. 626,700 55,306
Engelhard Corp. 993,600 22,853
Grace (W.R.) & Co. 323,100 16,801
Hanna (M.A.) Co. (g) 5,334,225 122,020
Hercules, Inc. 916,500 50,178
IMC Fertilizer Group, Inc. 2,897,360 113,359
Lyondell Petrochemical Co. 1,559,500 36,258
Monsanto Co. 700,000 25,550
Morton International, Inc. 1,833,500 72,882
Praxair, Inc. 3,420,530 147,084
Rohm & Haas Co. 1,649,000 108,010
Schulman (A.), Inc. (g) 2,722,025 63,287
Sealed Air Corp. (a) 1,426,200 53,126
Sekisui Chemical Co. Ltd. 1,379,000 16,345
Trivest 1992 Special Fund Ltd. 26.6(e) 5,102
Union Carbide Corp. 435,200 19,856
944,349
IRON & STEEL - 1.6%
AK Steel Holding Corp. (g) 2,606,000 106,847
Allegheny Teledyne, Inc. (a) 128,800 2,914
Bethlehem Steel Corp. (a)(g) 8,470,500 84,705
Birmingham Steel Corp. 313,100 4,970
Inland Steel Industries, Inc. (g) 4,677,200 83,605
J & L Specialty Steel, Inc. 845,000 11,513
LTV Corp. 4,233,181 49,211
Mueller Industries, Inc. (a)(g) 1,027,300 41,734
Nucor Corp. (g) 4,892,400 248,289
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
IRON & STEEL - CONTINUED
USX-U.S. Steel Group (g) 6,372,700 $ 181,622
WHX Corp. (a)(g) 1,682,200 17,032
Worthington Industries, Inc. 1,043,000 20,860
853,302
METALS & MINING - 1.4%
Alcan Aluminium Ltd. 4,172,195 124,680
Alumax, Inc. (a) 407,200 13,641
Aluminum Co. of America 1,679,800 99,108
ASARCO, Inc. 831,900 22,149
Cookson Group PLC 24,750,000 96,641
Cyprus Amax Minerals Co. 7,100 153
Falconbridge Ltd. 2,023,900 40,643
Falconbridge Ltd. installment receipt (k) 7,392,700 98,247
Freeport-McMoRan Copper & Gold, Inc. Class B 1,655,400 51,731
Inco Ltd. 342,953 10,526
Noranda, Inc. 4,610,231 94,273
Phelps Dodge Corp. 941,700 60,387
Reynolds Metals Co. 370,000 18,916
Titanium Metals Corp. (a) 322,000 9,338
740,433
PACKAGING & CONTAINERS - 0.1%
Ball Corp. 254 6
Bemis Co., Inc. 238,500 8,079
Corning, Inc. 398,200 15,530
Crown Packaging Holdings Ltd. (warrants) (a) 5,000 45
Tupperware Corp. 340,000 16,660
40,320
PAPER & FOREST PRODUCTS - 1.2%
Albany International Corp. Class A (g) 1,300,000 28,113
Champion International Corp. 1,307,100 59,963
Georgia-Pacific Corp. 2,795,400 221,186
International Paper Co. 5,599,200 237,966
Kimberly-Clark Corp. 83,100 7,323
Louisiana-Pacific Corp. 2,232,600 50,792
Weyerhaeuser Co. 852,000 39,299
644,642
TOTAL BASIC INDUSTRIES 3,223,046
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONGLOMERATES - 1.3%
AlliedSignal, Inc. 1,902,500 $ 125,327
American Standard Companies, Inc. (a) 712,700 24,410
Brascan Ltd. Class A 1,444,700 26,943
Crane Co. 835,700 37,084
Hanson PLC sponsored ADR 2,537,300 31,399
Mark IV Industries, Inc. (g) 5,641,469 122,702
Suncor, Inc. 1,730,600 62,327
Textron, Inc. 505,700 42,985
Tyco International Ltd. 3,482,900 150,200
United Technologies Corp. 642,100 77,132
700,509
CONSTRUCTION & REAL ESTATE - 3.1%
BUILDING MATERIALS - 1.8%
Armstrong World Industries, Inc. 245,000 15,282
Carlisle Companies, Inc. (g) 1,081,400 60,018
Centex Construction Products, Inc. (g) 1,559,000 24,944
Lafarge Corp. (g) 4,856,093 90,445
Masco Corp. 2,637,900 79,137
Medusa Corp. (g) 1,645,900 50,611
Owens-Corning (g) 2,716,100 100,156
Premdor, Inc. (a) 535,000 4,242
Schuller Corp. 1,024,600 9,862
Sherwin-Williams Co. (g) 5,871,560 272,294
Southdown, Inc. (g) 1,538,300 37,881
Texas Industries, Inc. (g) 1,248,900 74,778
USG Corp. (a)(g) 2,813,000 83,335
United Dominion Industries Ltd. 676,400 13,434
Vulcan Materials Co. 659,700 39,582
956,001
CONSTRUCTION - 0.6%
Centex Corp. (g) 1,487,700 48,536
Clayton Homes, Inc. 1,010,150 22,223
Jacobs Engineering Group, Inc. (a) 355,900 8,008
Kaufman & Broad Home Corp. 636,400 8,273
Lennar Corp. 426,900 9,499
Oakwood Homes Corp. (g) 3,719,200 102,278
Pulte Corp. (g) 2,600,100 66,628
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
CONSTRUCTION - CONTINUED
Sekisui House Ltd. 2,123,000 $ 23,257
Toll Brothers, Inc. (a)(g) 2,462,600 40,941
329,643
ENGINEERING - 0.7%
Fluor Corp. (g) 5,170,100 317,961
Foster Wheeler Corp. 959,000 41,956
359,917
TOTAL CONSTRUCTION & REAL ESTATE 1,645,561
DURABLES - 10.6%
AUTOS, TIRES, & ACCESSORIES - 7.5%
AutoZone, Inc. (a) 3,835,800 111,238
Borg-Warner Automotive, Inc. 626,000 22,223
Chrysler Corp. 28,108,000 804,592
Cross-Continent Auto Retailers, Inc. 107,500 2,473
Cummins Engine Co., Inc. 724,100 28,511
Dana Corp. 3,307,700 100,058
Danaher Corp. 2,103,500 87,032
Eaton Corp. 721,800 43,579
Echlin, Inc. (g) 3,745,500 117,515
Ford Motor Co. 2,583,600 80,738
General Motors Corp. 14,267,859 684,857
Genuine Parts Co. 2,669,100 116,773
Goodyear Tire & Rubber Co. 4,935,800 227,664
Honda Motor Co. Ltd. 10,370,000 260,728
Johnson Controls, Inc. 1,360,100 102,008
Lear Corp. (a) 1,316,300 43,438
Lucasvarity PLC sponsored ADR (a) 4,986,768 196,354
Magna International, Inc. Class A 2,592,830 124,887
Michelin SA (Compagnie Generale des Etablissements)
Class B 1,200,000 61,243
NACCO Industries, Inc. Class A (g) 818,846 39,100
Navistar International Corp. (a) 100,000 850
Pep Boys-Manny, Moe & Jack 1,455,000 51,834
Scania AB:
Class A 1,534,300 41,521
Class B 2,483,700 67,400
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES - CONTINUED
Smith (A.O.) Corp. Class B (g) 1,900,600 $ 47,277
TRW, Inc. 786,700 73,163
Toyota Motor Corp. 5,973,000 152,858
Volkswagen AG 135,000 50,372
Volvo AB Class B 11,500,000 247,060
3,987,346
CONSUMER ELECTRONICS - 1.7%
Black & Decker Corp. (g) 7,473,000 310,130
Matsushita Electric Industrial Co. Ltd. 11,011,000 184,893
Maytag Co. (g) 7,672,100 149,606
Newell Co. 1,125,900 33,777
Sony Corp. 2,622,100 165,522
Whirlpool Corp. 1,523,900 77,147
921,075
HOME FURNISHINGS - 0.5%
Leggett & Platt, Inc. (g) 8,068,700 237,018
TEXTILES & APPAREL - 0.9%
Adidas AG (i) 80,000 7,287
Donna Karan International, Inc. (a) 108,000 2,471
Fila Holding Spa sponsored ADR 394,500 37,921
Intimate Brands, Inc. Class A 1,014,300 18,511
Jones Apparel Group, Inc. (a) 433,700 27,648
Liz Claiborne, Inc. 2,547,800 94,906
NIKE, Inc. Class B 952,200 115,692
Nine West Group, Inc. (a) 609,900 33,087
Shaw Industries, Inc. 5,055,700 67,620
Tommy Hilfiger (a) 1,233,300 73,073
478,216
TOTAL DURABLES 5,623,655
ENERGY - 13.1%
ENERGY SERVICES - 2.1%
Baker Hughes, Inc. 1,048,000 31,832
Dresser Industries, Inc. (g) 9,808,400 291,800
ENSCO International, Inc. (a) 1,777,800 57,779
Global Marine, Inc. (a)(g) 9,809,500 154,500
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Halliburton Co. 1,396,200 $ 72,079
Nabors Industries, Inc. (a) 1,920,700 26,170
Noble Drilling Corp. (a) 1,683,400 25,461
Schlumberger Ltd. 3,452,700 291,753
Tidewater, Inc. 2,588,970 96,763
Transocean Offshore, Inc. (a) 580,100 35,531
Weatherford Enterra, Inc. (a) 17,600 482
Western Atlas, Inc. (a) 115,700 7,202
1,091,352
INDEPENDENT POWER - 0.0%
Thermo Electron Corp. 149,900 6,071
OIL & GAS - 11.0%
Amerada Hess Corp. 413,800 21,880
Amoco Corp. 5,377,370 379,104
Anadarko Petroleum Corp. (g) 4,217,050 235,628
Apache Corp. (g) 4,516,515 134,366
Atlantic Richfield Co. 1,174,370 149,732
Barrett Resources Corp. (a) 506,400 17,851
British Petroleum PLC:
Ord. 30,945,636 321,090
ADR 2,242,007 280,251
Burlington Resources, Inc. 4,426,900 196,444
Canadian Natural Resources Ltd. (a)(g) 5,005,800 112,469
Canada Occidental Petroleum Ltd. 5,153,300 83,054
Chesapeake Energy Corp. 924,100 57,872
Chevron Corp. 2,799,200 175,300
Cooper Cameron Corp. (a) 187,800 10,775
Devon Energy Corp. 301,800 7,696
Enron Oil & Gas Co. (g) 8,515,400 211,821
Exxon Corp. 5,997,900 499,324
Flores & Rucks, Inc. (a) 305,400 11,796
Kerr-McGee Corp. 192,400 11,712
Mobil Corp. 2,377,500 275,196
Noble Affiliates, Inc. (g) 5,006,600 211,529
Occidental Petroleum Corp. 9,234,800 215,863
Parker & Parsley Petroleum Co. (g) 1,867,200 48,781
Phillips Petroleum Co. 3,019,800 129,096
Poco Petroleums Ltd. (a) 3,731,700 29,044
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Pogo Producing Co. 1,457,364 $ 52,101
Renaissance Energy Ltd. (a)(g) 8,731,300 256,115
Renaissance Energy Ltd. (a)(g)(i) 765,000 22,440
Royal Dutch Petroleum Co. ADR 4,579,360 714,953
Talisman Energy, Inc. (a) 11,000 301
Texaco, Inc. 3,470,000 319,240
Total SA Class B 3,785,000 298,006
Union Pacific Resources Group, Inc. 2,021,400 56,599
United Meridian Corp. (a) 1,450,000 65,975
Unocal Corp. 6,086,211 219,103
5,832,507
TOTAL ENERGY 6,929,930
FINANCE - 7.6%
BANKS - 1.1%
Bank of Boston Corp. 100,000 5,788
Bank of Tokyo-Mitsubishi Ltd. 2,303,350 50,259
BankAmerica Corp. 1,750,000 143,720
Chase Manhattan Corp. 985,000 78,923
Citicorp 2,050,000 185,782
Dai-Ichi Kangyo Bank 793,000 13,387
Fuji Bank Ltd. 689,000 13,487
HSBC Holdings PLC Ord. 276,400 5,303
Lloyds TSB Group PLC 834,800 4,938
NationsBank Corp. 386,100 33,542
Sakura Bank Ltd. 1,579,000 15,738
550,867
CREDIT & OTHER FINANCE - 0.3%
Equitable Companies, Inc. 478,300 12,316
First USA, Inc. 1,191,386 65,973
Green Tree Financial Corp. 794,500 31,184
Greenpoint Financial Corp. 675,900 25,769
Household International, Inc. 518,165 42,619
177,861
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
FEDERAL SPONSORED CREDIT - 1.3%
Federal Home Loan Mortgage Corp. 2,215,400 $ 216,832
Federal National Mortgage Association 11,448,000 399,249
Student Loan Marketing Association 1,169,100 87,244
703,325
INSURANCE - 4.4%
AFLAC, Inc. 357,100 12,677
Aetna, Inc. 1,188,700 83,655
Allstate Corp. 6,806,500 335,220
American International Group, Inc. 4,619,500 465,416
CIGNA Corp. 2,518,700 301,929
Chubb Corp. (The) 5,450,800 250,737
Conseco, Inc. 499,000 24,576
Equitable of Iowa Companies 1,550,000 64,325
General Re Corp. 2,370,200 335,976
Lincoln National Corp. 355,100 15,580
MBIA, Inc. 428,600 36,752
MGIC Investment Corp. 818,900 55,173
Mid Ocean Ltd. 1,018,700 43,422
Old Republic International Corp. 1,491,800 36,922
Progressive Corp. 179,300 10,265
Reliastar Financial Corp. 1,439,937 68,397
SAFECO Corp. 390,400 13,664
SunAmerica, Inc. 1,567,900 54,093
Travelers, Inc. (The) 1,518,945 74,618
UNUM Corp. 423,600 27,163
USLIFE Corp. 1,081,700 32,451
2,343,011
SAVINGS & LOANS - 0.1%
Charter One Financial Corp. 1,174,803 46,992
Washington Mutual, Inc. 561,500 20,916
67,908
SECURITIES INDUSTRY - 0.4%
Alex Brown, Inc. 59,800 3,461
Merrill Lynch & Co., Inc. 400,000 26,250
Morgan Stanley Group, Inc. 400,000 19,900
Nikko Securities Co. Ltd. 1,428,000 15,259
Nomura Securities Co. Ltd. 3,047,000 56,089
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SECURITIES INDUSTRY - CONTINUED
PaineWebber Group, Inc. 414,575 $ 8,706
Salomon, Inc. 689,700 31,468
Schwab (Charles) Corp. 1,457,700 33,709
194,842
TOTAL FINANCE 4,037,814
HEALTH - 3.0%
DRUGS & PHARMACEUTICALS - 1.3%
American Home Products Corp. 984,400 62,755
Amgen, Inc. (a) 100,000 6,313
Bristol-Myers Squibb Co. 568,000 54,741
Elan Corp. PLC ADR (a) 2,025,000 60,497
Genentech, Inc. special (a) 795,100 42,041
Lilly (Eli) & Co. 608,900 39,274
Merck & Co., Inc. 1,300,000 91,488
Pharmacia & Upjohn, Inc. 1,286,400 53,064
Pfizer, Inc. 1,728,100 136,735
Sandoz AG (Reg.) 28,000 33,615
Schering-Plough Corp. 800,000 49,200
SmithKline Beecham PLC ADR 300,000 18,263
Takeda Chemical Industries Ltd. 174,000 3,187
Warner-Lambert Co. 543,100 35,845
687,018
MEDICAL EQUIPMENT & SUPPLIES - 0.3%
Boston Scientific Corp. (a) 276,100 15,876
Johnson & Johnson 450,000 23,063
Medtronic, Inc. 1,211,300 77,674
Nellcor, Inc. (a) 708,400 15,585
Pall Corp. 703,400 19,871
152,069
MEDICAL FACILITIES MANAGEMENT - 1.4%
Columbia/HCA Healthcare Corp. 6,738,302 383,240
FHP International Corp. (a) 100,000 3,738
Fresenius Medical Care AG sponsored ADR 338,961 7,881
HEALTHSOUTH Rehabilitation Corp. (a) 4,757,500 182,568
OrNda Healthcorp (a) 1,575,700 43,135
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - CONTINUED
Oxford Health Plans, Inc. (a) 1,150,000 $ 57,213
PacifiCare Health Systems, Inc. Class B (a) 406,000 35,119
United HealthCare Corp. 458,000 19,064
Universal Health Services, Inc. Class B (a) 734,700 20,021
Vencor, Inc. (a) 611,069 19,707
771,686
TOTAL HEALTH 1,610,773
HOLDING COMPANIES - 0.7%
ABB AB:
sponsored ADR 45,100 4,736
Series A 125,750 13,309
CINergy Corp. 776,000 23,959
Norfolk Southern Corp. 3,707,100 338,735
380,739
INDUSTRIAL MACHINERY & EQUIPMENT - 9.7%
ELECTRICAL EQUIPMENT - 2.5%
Alcatel Alsthom Compagnie Generale d'Electricite SA 1,300,000 109,655
Amphenol Corp. Class A (a) 933,400 21,352
Emerson Electric Co. 3,526,000 317,780
General Electric Co. 6,280,000 571,480
General Instrument Corp. (a) 200,000 4,950
General Signal Corp. 1,964,700 86,447
Honeywell, Inc. 901,800 56,926
Omron Corp. 483,000 9,065
Westinghouse Electric Corp. 7,500,000 139,687
1,317,342
INDUSTRIAL MACHINERY & EQUIPMENT - 7.1%
AGCO Corp. (g) 3,464,900 88,355
Briggs & Stratton Corp. 353,900 15,704
Case Corp. (g) 6,598,400 321,672
Caterpillar, Inc. (g) 14,106,700 1,063,294
Cincinnati Milacron, Inc. (g) 3,385,400 63,899
Deere & Co. (g) 16,117,800 676,948
Dover Corp. 1,965,600 93,857
Duriron Co., Inc. (g) 1,623,900 43,033
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Greenfield Industries, Inc. (g) 1,170,600 $ 28,094
Harnischfeger Industries, Inc. 1,889,300 71,321
IDEX Corp. (g) 1,268,550 42,179
Illinois Tool Works, Inc. 5,223,900 376,774
Ingersoll-Rand Co. (g) 6,873,800 326,507
Kennametal, Inc. (g) 1,928,115 66,279
Komatsu Ltd. Ord. 5,190,000 45,019
Parker-Hannifin Corp. 2,856,650 119,979
Singer Co. 501,300 10,339
Stanley Works 645,400 18,152
Timken Co. 970,942 38,109
Toro Co. 328,500 10,923
TRINOVA Corp. (g) 2,841,500 89,507
UCAR International, Inc. (a)(g) 3,532,200 143,054
3,752,998
POLLUTION CONTROL - 0.1%
Browning-Ferris Industries, Inc. 100,000 2,500
Republic Industries, Inc. (a) 715,000 20,735
Thermo Instrument Systems, Inc. 38,700 1,417
WMX Technologies, Inc. 1,483,100 48,757
73,409
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 5,143,749
MEDIA & LEISURE - 3.1%
BROADCASTING - 0.4%
Canal Plus SA 46,100 11,340
Clear Channel Communications, Inc. (a) 229,000 20,267
Comcast Corp.:
Class A 75,000 1,153
Class A special 375,000 5,766
Cox Radio, Inc. Class A 201,500 4,433
TCI Group Class A (a) 800,000 11,950
Time Warner, Inc. 2,344,479 90,555
Univision Communications, Inc., Class A 47,500 1,591
Viacom, Inc. (a):
Class A 25,000 881
Class B (non-vtg.) 1,654,400 58,731
206,667
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
ENTERTAINMENT - 0.1%
Carnival Cruise Lines, Inc. Class A 890,900 $ 27,617
Disney (Walt) Co. 300,000 19,013
46,630
LEISURE DURABLES & TOYS - 0.2%
Callaway Golf Co. 1,818,200 62,046
Mattel, Inc. 2,222,668 57,512
119,558
LODGING & GAMING - 2.1%
Bally Gaming International, Inc. (warrants) (a) 225,000 563
Circus Circus Enterprises, Inc. (a) 775,100 27,419
Extended Stay America, Inc. (a) 1,000,000 20,500
HFS, Inc. (a) 4,241,100 283,624
Hilton Hotels Corp. 7,729,200 219,316
Host Marriott Corp. (a)(g) 15,660,500 227,077
ITT Corp. (a) 4,051,800 176,760
La Quinta Motor Inns, Inc. 1,596,186 31,125
Maritime Group Ltd. (warrants) (a) 17,040 -
Mirage Resorts, Inc. (a) 2,104,000 53,915
Prime Hospitality Corp. (a)(g) 3,077,600 50,780
Sun International Hotels Ltd. Ord. (a) 14,198 728
1,091,807
PUBLISHING - 0.2%
Dun & Bradstreet Corp. 538,200 32,090
Gannett Co., Inc. 264,100 18,586
Harcourt General, Inc. 477,800 26,398
Knight-Ridder, Inc. 146,000 5,402
New York Times Co. (The) Class A 442,600 14,938
News Corp. Ltd. ADR 100,000 2,088
Scholastic Corp. (a) 77,100 5,590
Times Mirror Co. Class A 100,000 4,450
Tribune Co. 231,500 18,057
127,599
RESTAURANTS - 0.1%
Host Marriott Services Corp. (a)(g) 3,132,100 25,448
TOTAL MEDIA & LEISURE 1,617,709
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - 1.0%
AGRICULTURE - 0.0%
Pioneer Hi-Bred International, Inc. 142,800 $ 8,639
BEVERAGES - 0.1%
Heileman G Brewing, Inc. Unit Class 1 (non-vtg.) (a)(h) 340 340
Seagram Co. Ltd. 500,000 18,631
18,971
FOODS - 0.1%
Quaker Oats Co. 1,474,800 54,015
Sara Lee Corp. 375,000 13,406
67,421
HOUSEHOLD PRODUCTS - 0.0%
Premark International, Inc. 340,000 6,418
Unilever PLC Ord. 233,800 5,000
11,418
TOBACCO - 0.8%
Philip Morris Companies, Inc. 4,876,600 437,675
TOTAL NONDURABLES 544,124
PRECIOUS METALS - 0.9%
Barrick Gold Corp. 6,023,500 150,593
Bre-X Minerals Ltd. (a) 1,220,000 23,469
Homestake Mining Co. 2,590,800 37,890
Newmont Gold Co. 887,000 42,022
Newmont Mining Corp. 2,051,500 96,933
Placer Dome, Inc. 3,076,300 72,732
Santa Fe Pacific Gold Corp. 2,646,600 33,083
Western Mining Holdings Ltd. 2,749,736 17,693
474,415
RETAIL & WHOLESALE - 5.7%
APPAREL STORES - 0.5%
Abercrombie & Fitch Co. 36,000 882
AnnTaylor Stores Corp. (a) 176,700 2,982
Gap, Inc. 3,855,800 111,336
Gymboree Corp. (a) 44,000 1,337
Lamonts Apparel, Inc. (warrants) (a) 264,824 -
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
APPAREL STORES - CONTINUED
Limited, Inc. (The) 3,950,300 $ 75,549
Melville Corp. 1,603,300 70,746
Payless ShoeSource, Inc. (a) 213,368 7,174
Ross Stores, Inc. 89,600 3,226
Talbots, Inc. 229,100 6,873
280,105
DRUG STORES - 0.3%
General Nutrition Companies, Inc. (a) 450,300 7,908
Revco (D.S.), Inc. (a)(g) 3,658,497 107,468
Rite Aid Corp. 514,800 18,662
134,038
GENERAL MERCHANDISE STORES - 1.9%
Consolidated Stores Corp. (a) 1,597,100 63,884
Dayton Hudson Corp. 6,035,100 199,158
Federated Department Stores, Inc. (a) 2,668,800 89,405
Federated Department Stores, Inc. Class C (warrants) (a) 341,542 4,355
Federated Department Stores, Inc. Class D (warrants) (a) 341,542 4,440
Hot Topic, Inc. 27,400 644
Ito-Yokado Co. Ltd. 1,345,000 76,450
K mart Corp. 2,431,400 24,922
Kingfisher PLC 477,600 4,735
May Department Stores Co. (The) 983,550 47,825
Nordstrom, Inc. 884,100 33,596
Price/Costco, Inc. (a) 4,074,400 83,525
Sears, Roebuck & Co. 3,002,900 134,380
Wal-Mart Stores, Inc. 8,875,500 234,091
Woolworth Corp. (a) 788,400 16,261
1,017,671
GROCERY STORES - 0.4%
Food 4 Less Holdings, Inc. (warrants) (a)(h) 1,169 14
Great Atlantic & Pacific Tea Co., Inc. 493,100 12,759
Safeway, Inc. (a) 4,177,200 178,053
190,826
RETAIL & WHOLESALE, MISCELLANEOUS - 2.6%
Barnes & Noble, Inc. (a) 815,600 28,036
Best Buy Co., Inc. (a) 500,000 11,375
Circuit City Stores, Inc. 702,500 25,378
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISCELLANEOUS - CONTINUED
Corporate Express, Inc. (a) 250,000 $ 9,719
Home Depot, Inc. (The) 8,057,850 458,291
Lowe's Companies, Inc. 5,355,700 218,914
Officemax, Inc. (a) 1,991,250 27,878
Office Depot, Inc. (a) 3,050,000 72,056
PETsMART, Inc. (a) 1,573,800 40,722
Staples, Inc. (a) 4,163,600 92,380
Sunglass Hut International, Inc. (a) 1,326,900 21,147
Tandy Corp. 561,300 22,662
Toys "R" Us, Inc. (a) 10,060,200 293,003
U.S. Office Products Co. (a) 200,000 7,175
Uny Co. Ltd. 3,000 55
Viking Office Products, Inc. (a) 1,313,000 39,390
1,368,181
TOTAL RETAIL & WHOLESALE 2,990,821
SERVICES - 1.1%
ADVERTISING - 0.4%
Omnicom Group, Inc. (g) 4,450,788 208,074
Outdoor Systems, Inc. (a) 240,000 11,280
219,354
PRINTING - 0.1%
Bowne & Co., Inc. (g) 1,175,300 26,885
Deluxe Corp. 400,300 15,111
Wallace Computer Services, Inc. 674,400 19,052
61,048
SERVICES - 0.6%
CDI Corp. (a) 702,500 17,738
HealthCare COMPARE Corp. (a) 250,900 11,886
Interim Services, Inc. (a) 608,400 26,009
Manpower, Inc. 3,955,900 131,534
Robert Half International, Inc. (a)(g) 3,816,400 140,730
327,897
TOTAL SERVICES 608,299
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - 10.1%
COMMUNICATIONS EQUIPMENT - 1.5%
Ascend Communications, Inc. (a) 973,000 $ 64,340
Cabletron Systems, Inc. (a) 108,600 7,426
Cisco Systems, Inc. (a) 8,551,300 530,715
DSC Communications Corp. (a) 300,000 7,500
Lucent Technologies, Inc. 838,400 38,461
Newbridge Networks Corp. (a) 608,100 38,766
3Com Corp. (a) 800,000 48,050
U.S. Robotics Corp. 766,500 49,535
784,793
COMPUTER SERVICES & SOFTWARE - 3.0%
America Online, Inc. (a) 1,183,900 42,176
American Management Systems, Inc. (a) 262,500 7,350
Automatic Data Processing, Inc. 41,900 1,828
CUC International, Inc. (a) 4,574,500 182,408
Ceridian Corp. (a) 750,700 37,535
Computer Associates International, Inc. 3,055,100 182,542
CompUSA, Inc. (a) 100,000 5,400
Computer Sciences Corp. (a) 2,095,775 161,113
DST Systems, Inc. (a) 200,000 6,400
Electronic Data Systems Corp. 645,900 39,642
Electronics for Imaging, Inc. (a) 680,000 48,790
Equifax Inc. 386,670 10,198
First Data Corp. 450,000 36,731
HBO & Co. 1,431,900 95,579
Metromail Corp. (a)(g) 813,300 17,588
Microsoft Corp. (a) 1,580,300 208,402
Netscape Communications Corp. (a) 1,328,100 61,591
Oracle Systems Corp. (a) 6,571,600 279,704
Orckit Communications Ltd. 74,500 1,369
Parametric Technology Corp. (a) 1,873,000 92,479
PeopleSoft, Inc. (a) 483,000 40,210
Shared Medical Systems Corp. 130,000 7,410
Sybase, Inc. (a) 500,000 7,438
1,573,883
COMPUTERS & OFFICE EQUIPMENT - 3.4%
Adaptec, Inc. (a) 882,910 52,975
Bay Networks, Inc. (a) 2,750,000 74,938
Canon, Inc. 2,361,000 46,429
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Comdisco, Inc. (g) 4,278,350 $ 123,537
Compaq Computer Corp. (a) 6,285,500 403,058
Dell Computer Corp. (a) 2,215,600 172,263
Diebold, Inc. 1,214,400 70,891
Digital Equipment Corp. (a) 2,636,600 94,258
EMC Corp. 400,000 9,050
International Business Machines Corp. 4,450,000 554,025
Pitney Bowes, Inc. 2,038,200 107,260
Seagate Technology (a) 1,000,000 55,875
Sun Microsystems, Inc. (a) 400,000 24,850
Tech Data Corp. (a) 688,800 19,200
1,808,609
ELECTRONIC INSTRUMENTS - 0.1%
Applied Materials, Inc. 600,000 16,575
Perkin-Elmer Corp. 304,100 17,600
Waters Corp. (a) 1,400 45
34,220
ELECTRONICS - 1.9%
Analog Devices, Inc. (a) 715,400 19,405
Atmel Corp. (a) 885,582 27,342
Augat, Inc. 600,220 12,755
Cascade Communications Corp. (a) 411,000 33,497
Intel Corp. 7,950,100 758,738
Linear Technology Corp. 295,300 10,889
Maxim Integrated Products, Inc. (a) 513,700 18,172
Micron Technology, Inc. 1,100,000 33,550
Storage Technology Corp. (a) 641,000 24,278
Texas Instruments, Inc. 1,761,000 97,075
1,035,701
PHOTOGRAPHIC EQUIPMENT - 0.2%
Eastman Kodak Co. 900,000 70,650
Fuji Photo Film Co. Ltd. 1,390,000 42,312
112,962
TOTAL TECHNOLOGY 5,350,168
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - 4.9%
AIR TRANSPORTATION - 0.9%
AMR Corp. (a) 1,423,900 $ 113,378
Comair Holdings, Inc. 1,857,525 43,652
Delta Air Lines, Inc. 663,300 47,758
KLM Royal Dutch Airlines NV (NY Reg.) 2,125,930 56,071
KLM Royal Dutch Airlines NV 489,177 13,098
Northwest Airlines Corp. Class A (a) 3,718,600 131,545
UAL Corp. (a) 867,200 40,758
USAir Group, Inc. (a) 2,094,400 34,558
480,818
RAILROADS - 3.6%
Bombardier, Inc. Class B 4,036,600 57,498
Burlington Northern Santa Fe Corp. 3,503,440 295,603
CSX Corp. (g) 16,046,200 810,334
Conrail, Inc. (g) 5,814,700 420,839
Illinois Central Corp., Series A 2,418,464 76,484
Trinity Industries, Inc. (g) 3,599,800 120,143
Union Pacific Corp. 1,060,000 77,645
Wisconsin Central Transportation Corp. (a) 1,543,900 55,387
1,913,933
TRUCKING & FREIGHT - 0.4%
American Freightways Corp. (a) 1,460,200 12,959
Consolidated Freightways, Inc. 253,500 6,211
Fritz Companies, Inc. (a) 583,700 8,464
Landstar System, Inc. (a)(g) 1,201,200 32,132
Pittston Co.:
(Brinks Group) 1,754,400 55,044
(Burlington Group) 877,200 15,899
Swift Transportation Co., Inc. (a)(g) 2,424,100 53,179
USFreightways Corp. 722,600 14,814
198,702
TOTAL TRANSPORTATION 2,593,453
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - 6.1%
CELLULAR - 0.1%
AirTouch Communications, Inc. (a) 890,000 $ 24,586
360 Degrees Communications Co. (a) 962,300 22,614
Vodafone Group PLC sponsored ADR 200,000 6,825
54,025
ELECTRIC UTILITY - 1.0%
American Electric Power Co., Inc. 1,380,100 56,066
DTE Energy Co. 729,800 20,434
El Paso Electric Co. (a) 2,017,786 10,972
Entergy Corp. 2,910,000 78,570
Southern Co. 2,504,700 56,669
Texas Utilities Co. 755,300 29,929
Veba AG Ord. 5,000,000 261,976
514,616
GAS - 1.1%
Enron Corp. 4,536,900 184,879
Pacific Enterprises 552,100 16,701
PanEnergy Corp. 411,100 14,234
Questar Corp. 683,100 24,165
Sonat, Inc. (g) 6,872,900 304,126
Williams Companies, Inc. 712,100 36,317
580,422
TELEPHONE SERVICES - 3.9%
AT&T Corp. 8,837,100 461,738
Ameritech Corp. 3,059,200 160,990
BCE, Inc. 2,184,700 93,439
Bell Atlantic Corp. 4,896,900 293,202
BellSouth Corp. 5,337,700 197,495
Frontier Corp. 1,717,600 45,731
GTE Corp. 1,984,300 76,396
LCI International, Inc. (a) 521,600 16,430
MCI Communications Corp. 1,719,900 44,072
MFS Communications, Inc. 1,225,000 53,441
NYNEX Corp. 4,779,200 207,895
SBC Communications, Inc. 4,559,400 219,421
U.S. West, Inc. 2,710,700 80,643
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
U.S. West, Inc. (Media Group) (a) 850,000 $ 14,344
WorldCom, Inc. (a) 4,676,000 99,950
2,065,187
TOTAL UTILITIES 3,214,250
TOTAL COMMON STOCKS
(Cost $40,079,393) 47,119,219
PREFERRED STOCKS - 0.1%
CONVERTIBLE PREFERRED STOCKS - 0.1%
RETAIL & WHOLESALE - 0.1%
APPAREL STORES - 0.0%
TJX Companies, Inc., Series E, $7.00 4,400 879
GENERAL MERCHANDISE STORES - 0.1%
K mart Financing I $3.875 606,000 29,618
TOTAL CONVERTIBLE PREFERRED STOCKS 30,497
NONCONVERTIBLE PREFERRED STOCKS - 0.0%
HEALTH - 0.0%
MEDICAL FACILITIES MANAGEMENT - 0.0%
Fresenius National Medical Care, Inc.
Class D 323,100 62
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
ELECTRICAL EQUIPMENT - 0.0%
Ampex Corp. 8% (a)(h) 4,415 3,356
TOTAL NONCONVERTIBLE PREFERRED STOCKS 3,418
TOTAL PREFERRED STOCKS
(Cost $33,399) 33,915
CORPORATE BONDS - 0.1%
MOODY'S RATINGS 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. 9%, 6/30/98 - CAD 2,000 $ 1,410
FINANCE - 0.0%
CREDIT & OTHER FINANCE - 0.0%
Polly Peck International PLC euro
7 1/4%, 1/4/05 (c) - 1,300 78
RETAIL & WHOLESALE - 0.0%
DRUG STORES - 0.0%
Big B, Inc. 6 1/2%, 3/15/03 B2 3,500 4,786
TOTAL CONVERTIBLE BONDS 6,274
NONCONVERTIBLE BONDS - 0.1%
BASIC INDUSTRIES - 0.0%
CHEMICALS & PLASTICS - 0.0%
Trans Resources, Inc. 11 7/8%, 7/1/02 (i) B2 2,500 2,563
PACKAGING & CONTAINERS - 0.0%
Crown Packaging Holdings Ltd., Series B, 0%,
11/1/03 (f) Caa 14,480 5,720
PAPER & FOREST PRODUCTS - 0.0%
Stone Container Corp.:
10 3/4%, 6/15/97 B2 5,770 5,856
11 7/8%, 12/1/98 B1 6,330 6,694
12,550
TOTAL BASIC INDUSTRIES 20,833
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
INDUSTRIAL MACHINERY & EQUIPMENT - 0.0%
Thermadyne Holdings Corp.:
10 1/4%, 5/1/02 B3 632 646
10 3/4%, 11/1/03 Caa 1,957 1,989
2,635
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
POLLUTION CONTROL - 0.0%
Envirosource, Inc. 9 3/4%, 6/15/03 B3 $ 2,400 $ 2,280
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 4,915
MEDIA & LEISURE - 0.1%
BROADCASTING - 0.1%
Citicasters, Inc. 9 3/4%, 2/15/04 B2 18,750 19,031
SCI Television, Inc. secured
8 1/2%, 6/30/98 (j) - 3,879 3,879
TOTAL MEDIA & LEISURE 22,910
RETAIL & WHOLESALE - 0.0%
APPAREL STORES - 0.0%
Lamonts Apparel, Inc. pay-in-kind
10 1/4%, 11/1/99 (b)(i) - 8,804 396
TOTAL NONCONVERTIBLE BONDS 49,054
TOTAL CORPORATE BONDS
(Cost $66,215) 55,328
U.S. TREASURY OBLIGATIONS - 9.7%
7 7/8%, 11/15/04 Aaa 235,000 252,552
7 1/2%, 2/15/05 Aaa 357,000 375,685
6 1/2%, 5/15/05 Aaa 248,700 245,825
5 7/8%, 11/15/05 Aaa 1,622,000 1,532,287
6 7/8%, 5/15/06 Aaa 500,000 505,860
7 5/8%, 11/15/22 Aaa 45,000 47,967
7 1/4%, 2/15/23 Aaa 165,000 166,211
6 1/4%, 8/15/23 Aaa 535,000 483,421
U.S. TREASURY OBLIGATIONS - CONTINUED
MOODY'S RATINGS PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (D) (000S) (000S)
7 1/2%, 11/15/24 Aaa $ 320,000 $ 338,150
7 5/8%, 2/15/25 Aaa 370,000 397,288
6 7/8%, 8/15/25 Aaa 298,710 294,277
6%, 2/15/26 Aaa 570,000 500,888
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $5,412,645) 5,140,411
COMMERCIAL MORTGAGE SECURITIES - 0.0%
Bardell Associates Note Trust
12 1/2%, 11/1/08 (h)(Cost $4,731) - 4,653 4,944
REPURCHASE AGREEMENTS - 1.2%
MATURITY
AMOUNT (000S)
Investments in repurchase agreements:
(U.S. Treasury obligations) in a joint
trading account at 5.72%, dated
9/30/96 due 10/1/96 $ 659,494 659,389
(U.S. Treasury obligations) in a joint
trading account at 5 3/4%, dated
9/30/96 due 10/1/96 10,796 10,794
TOTAL REPURCHASE AGREEMENTS 670,183
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $46,266,566) $ 53,024,000
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. Represents number of units held.
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 8 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
SECURITY DATE COST (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 $ 4,731
Food 4 Less Holdings,
Inc. (warrants) 5/17/93 $ -
Heileman G Brewing,
Inc. Unit Class 1
(non-vtg.) 1/21/94 $ 6,800
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 $32,686,000 or 0.1% of net
assets.
10. The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
11. Purchased on an installment basis. Market value reflects only those
payments made through September 30, 1996. The remaining installment
aggregating CAD 70,231,000
is due January 31, 1997.
Distribution of investments by country of issue, as a percentage of total
value of investment in securities, is as follows:
United States 88.9%
Canada 2.9
Japan 2.2
United Kingdom 1.8
Netherlands 1.5
Others (individually less than 1%) 2.7
TOTAL 100.0%
INCOME TAX INFORMATION
At September 30, 1996, the aggregate cost of investment securities for
income tax purposes was $46,345,759,000. Net unrealized appreciation
aggregated $6,678,241,000, of which $8,115,607,000 related to appreciated
investment securities and $1,437,366,000 related to depreciated investment
securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) SEPTEMBER 30, 1996
ASSETS
Investment in securities, at value (including repurchase $ 53,024,000
agreements of $670,183) (cost $46,266,566) -
See accompanying schedule
Cash 1
Receivable for investments sold 535,275
Receivable for fund shares sold 52,207
Dividends receivable 71,985
Interest receivable 92,526
Other receivables 7,879
U.S. Treasury obligations, at value, held as collateral for 608,220
securities loaned
TOTAL ASSETS 54,392,093
LIABILITIES
Payable for investments purchased $ 662,126
Payable for fund shares redeemed 182,087
Accrued management fee 19,297
Other payables and accrued expenses 9,853
Collateral on securities loaned, at value 608,220
TOTAL LIABILITIES 1,481,583
NET ASSETS $ 52,910,510
Net Assets consist of:
Paid in capital $ 45,749,592
Undistributed net investment income 634,537
Accumulated undistributed net realized gain (loss) on (231,036)
investments and foreign currency transactions
Net unrealized appreciation (depreciation) on 6,757,417
investments and assets and liabilities in foreign
currencies
NET ASSETS, for 695,735 shares outstanding $ 52,910,510
NET ASSET VALUE and redemption price per share $76.05
($52,910,510 (divided by) 695,735 shares)
Maximum offering price per share (100/97.00 of $76.05) $78.40
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED SEPTEMBER 30, 1996
INVESTMENT INCOME $ 410,185
Dividends (including $76,799 received from
affiliated issuers)
Interest (including income on securities loaned of 400,078
$10,541)
TOTAL INCOME 810,263
EXPENSES
Management fee $ 163,395
Basic fee
Performance adjustment (36,145)
Transfer agent fees 54,261
Accounting and security lending fees 512
Non-interested trustees' compensation 102
Custodian fees and expenses 637
Registration fees 1,670
Audit 237
Legal 186
Interest 6
Miscellaneous 111
Total expenses before reductions 184,972
Expense reductions (5,803) 179,169
NET INVESTMENT INCOME 631,094
REALIZED AND UNREALIZED GAIN (LOSS)
Net realized gain (loss) on:
Investment securities (including realized gain (loss) of (51,228)
$24,108 on sales of investments in affiliated issuers)
Foreign currency transactions (172)
Futures contracts (984) (52,384)
Change in net unrealized appreciation (depreciation) on:
Investment securities 804,972
Assets and liabilities in foreign currencies 48
Futures contracts (337) 804,683
NET GAIN (LOSS) 752,299
NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 1,383,393
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, 1996
1996
INCREASE (DECREASE) IN NET ASSETS
Operations $ 631,094 $ 479,248
Net investment income
Net realized gain (loss) (52,384) 12,054,974
Change in net unrealized appreciation (depreciation) 804,683 (1,024,952)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,383,393 11,509,270
FROM OPERATIONS
Distributions to shareholders (317,242) (335,078)
From net investment income
From net realized gain (8,153,202) (2,754,941)
TOTAL DISTRIBUTIONS (8,470,444) (3,090,019)
Share transactions 4,686,006 15,520,173
Net proceeds from sales of shares
Reinvestment of distributions 8,348,085 3,043,476
Cost of shares redeemed (9,215,643) (10,606,293)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 3,818,448 7,957,356
FROM SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) IN NET ASSETS (3,268,603) 16,376,607
NET ASSETS
Beginning of period 56,179,113 39,802,506
End of period (including undistributed net investment $ 52,910,510 $ 56,179,113
income of $634,537 and $340,857, respectively)
OTHER INFORMATION
Shares
Sold 60,950 180,498
Issued in reinvestment of distributions 113,656 36,159
Redeemed (120,793) (124,164)
Net increase (decrease) 53,813 92,493
</TABLE>
FINANCIAL HIGHLIGHTS
SIX MONTHS YEARS ENDED MARCH 31,
ENDED
SEPTEMBER 30,
1996 1996 1995 1994 D 1993 1992
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SELECTED PER-SHARE DATA
Net asset value, $ 87.52 $ 72.44 $ 69.72 $ 68.44 $ 68.13 $ 64.84
beginning of period
Income from Investment
Operations
Net investment .88 .79 .27 .61 1.20 .81
income
Net realized and 1.00 19.57 5.22 7.92 9.18 9.21
unrealized gain (loss)
Total from investment 1.88 20.36 5.49 8.53 10.38 10.02
operations
Less Distributions
From net investment (.50) (.59) (.14) (.75) (1.25) (1.30)
income
From net realized gain (12.85) (4.69) (2.63) (6.50) (8.82) (5.43)
Total distributions (13.35) (5.28) (2.77) (7.25) (10.07) (6.73)
Net asset value, end $ 76.05 $ 87.52 $ 72.44 $ 69.72 $ 68.44 $ 68.13
of period
TOTAL RETURN B, C 2.69% 28.43% 8.21% 12.94% 17.06% 16.48%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 52,911 $ 56,179 $ 39,803 $ 33,119 $ 24,886 $ 19,824
period (in millions)
Ratio of expenses to .68% A .95% .99% 1.00% 1.00% 1.05%
average net assets
Ratio of expenses to .66% A .92% .96% .99% 1.00% 1.05%
average net assets , E E E E
after expense
reductions
Ratio of net investment 2.32% A .95% .39% 1.07% 2.11% 1.57%
income to average
net assets
Portfolio turnover rate 75% A 155% 120% 132% 155% 172%
Average commission $ .0383
rate F
</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 7 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.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES
WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 7 OF
NOTES TO FINANCIAL STATEMENTS).
F FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS
REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY
TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD
TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN
VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY
DIFFER.
NOTES TO FINANCIAL STATEMENTS
For the period ended September 30, 1996
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 financial statements
have been prepared in conformity with generally accepted accounting
principles which permit management to make certain estimates and
assumptions at the date of the financial statements. The following
summarizes the significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. 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, which includes accretion of original
issue discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS.
Distributions are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences, which may result in distribution
reclassifications, are primarily due to differing treatments for litigation
proceeds, futures and options transactions, foreign currency transactions,
defaulted bonds, market discount, partnerships and losses deferred due to
wash sales. The fund also utilized earnings and profits distributed to
shareholders on redemption of shares as a part of the dividends paid
deduction for income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital and may
affect the per-share allocation between net investment income and realized
and unrealized gain (loss). 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), 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 for U.S. Treasury or Federal
Agency obligations.
2. OPERATING POLICIES -
CONTINUED
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
Securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are marked-to-market
daily and maintained at a value at least equal to the principal amount of
the repurchase agreement (including accrued interest). FMR, the fund's
investment adviser, is responsible for determining that the value of the
underlying securities remains in accordance with the market value
requirements stated above.
FUTURES CONTRACTS AND OPTIONS. The fund may use futures and options
contracts to manage its exposure to the stock and bond markets and to
fluctuations in interest rates and currency values. Buying futures, writing
puts, and buying calls tend to increase the fund's exposure to the
underlying instrument. Selling futures, buying puts, and writing calls tend
to decrease the fund's exposure to the underlying instrument, or hedge
other fund investments. Losses may arise from changes in the value of the
underlying instruments, if there is an illiquid secondary market for the
contracts, or if the counterparties do not perform under the contracts'
terms.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Exchange-traded
options are valued using the last sale price or, in the absence of a sale,
the last offering price. Options traded over-the-counter are valued using
dealer-supplied valuations.
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 $9,185,000 or 0%
of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $20,473,142,000 and $19,116,349,000, respectively, of which U.S.
government and government agency obligations aggregated $2,116,783,000 and
$7,294,513,000, respectively.
The market value of futures contracts opened and closed during the period
amounted to $17,822,000 and $159,450,000, 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 .2500% to .5200% for the
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES -
CONTINUED
MANAGEMENT FEE - CONTINUED
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 .47% 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 $7,203,000 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. For the
period, the transfer agent fees were equivalent to an annualized rate of
.20% of average net assets.
ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the fund's accounting
records and administers the security lending program. The security lending
fee is based on the number and duration of lending transactions. The
accounting fee is based on the level of average net assets for the month
plus out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $4,616,000 for the period.
5. SECURITY LENDING.
The fund loaned securities to certain brokers who paid the fund negotiated
lenders' fees. These fees are included in interest income. The fund
receives U.S. Treasury obligations and/or cash as collateral against the
loaned securities, in an amount at least equal to 102% of the market value
of the loaned securities at the inception of each loan. This collateral
must be maintained at not less than 100% of the market value of the loaned
securities during the period of the loan. At period end, the value of the
securities loaned and the value of collateral amounted to $595,329,000 and
$608,220,000, respectively.
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the
6. BANK BORROWINGS -
CONTINUED
average daily loan balance during the period for which the loan was
outstanding amounted to $13,036,000. The weighted average interest rate was
5.6%.
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$3,811,000 under this arrangement.
In addition, the fund has entered into arrangements with its custodian and
transfer agent whereby interest earned on uninvested cash balances was used
to offset a portion of the fund's expenses. During the period, the fund's
custodian and transfer agent fees were reduced by $17,000 and $1,975,000,
respectively, under these arrangements.
8. TRANSACTIONS WITH
AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions during the period with
companies which are or were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
AGCO Corp. $ 19,417 $ 16,667 $ 78 $ 88,355
AK Steel Holding Corp. - - 782 106,847
Albany International Corp. Class A - 3,284 260 28,113
Anadarko Petroleum Corp. 66,109 - 316 235,628
Apache Corp. - 90,394 884 134,366
Bethlehem Steel Corp. - 42,977 - 84,705
Black & Decker Corp. 10,324 - 1,794 310,130
Bowne & Co., Inc. - 11,439 212 26,885
CSX Corp. 41,888 11,393 8,267 810,334
Canadian Natural Resources Ltd. 8,040 - - 112,469
Carlisle Companies, Inc. - - 503 60,018
Case Corp. 6,883 24,631 660 321,672
Caterpillar, Inc. - 97,141 11,371 1,063,294
Centex Construction Products, Inc. - - 156 24,944
Centex Corp. - 10,214 149 48,536
Chrysler Corp. - 19,851 - -
Cincinnati Milacron, Inc. - 139 609 63,899
Comdisco, Inc. - - 599 123,537
Conrail, Inc. - 87,476 5,276 420,839
Continuum Co., Inc. - - - -
Deere & Co. 34,077 126,018 7,198 676,948
Digital Equipment Corp. 21,362 380,790 - -
Dresser Industries, Inc. 11,061 13,803 3,309 291,800
Duriron Co., Inc. - - 422 43,033
Echlin, Inc. - 39,071 1,904 117,515
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
Enron Oil & Gas Co. $ 13,661 $ - $ 498 $ 211,821
ENSCO International, Inc. - 1,760 - -
Equitable of Iowa Companies - 9,444 - -
Fluor Corp. 32,718 - 1,758 317,961
Global Marine, Inc. - 22,462 - 154,500
Greenfield Industries, Inc. - 3,552 98 28,094
Hanna (M.A.) Co. - - 1,067 122,020
Host Marriott Corp. - - - 227,077
Host Marriott Services Corp. - - - 25,448
IDEX Corp. - - 406 42,179
Illinois Central Corp., Series A - 773 - -
Ingersoll-Rand Co. 5,047 26,700 2,743 326,507
Inland Steel Industries, Inc. - 7,447 478 83,605
Interim Services, Inc. - 1,584 - -
Kaydon Corp. - 1,768 - -
Kennametal, Inc. 840 21,397 798 66,279
Lafarge Corp. 1,014 15,452 963 90,445
Landstar System, Inc. - - - 32,132
Leggett & Platt, Inc. - 494 1,856 237,018
Manpower, Inc. - 17,781 291 -
Mark IV Industries, Inc. - - 395 122,702
Maytag Co. 10,827 - 2,148 149,606
Medusa Corp. - - 494 50,611
Metromail Corp. 4,242 - - 17,588
Mueller Industries, Inc. - 874 - 41,734
NACCO Industries, Inc. Class A - - 307 39,100
Noble Affiliates, Inc. - - 401 211,529
Nucor Corp. 28,197 - 783 248,289
Oakwood Homes Corp. 13 3,077 74 102,278
Omnicom Group, Inc. - 23,395 1,669 208,074
Owens-Corning - 72,501 170 100,156
Parker & Parsley Petroleum Co. - - 93 48,781
Parker-Hannifin Corp. 2,128 58,642 973 -
Premdor, Inc. - 12,384 - -
Prime Hospitality Corp. - - - 50,780
Pulte Corp. - 3,068 323 66,628
Renaissance Energy Ltd. - - - 278,555
Revco (D.S.), Inc. - 6,482 - 107,468
Robert Half International, Inc. - 995 - 140,730
Schulman (A.), Inc. - - 517 63,287
Seagull Energy Corp. 6,985 10,327 - -
Shaw Industries, Inc. - 5,414 - -
Sherwin-Williams Co. 2,132 - 2,055 272,294
Smith (A.O.) Corp. Class B - - 646 47,277
Sonat, Inc. 41,188 24,746 3,765 304,126
Southdown, Inc. - - 308 37,881
Stop & Shop Companies, Inc. - - - -
Swift Transportation Co., Inc. - 743 - 53,179
TRINOVA Corp. 782 2,302 1,127 89,507
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND VALUE
AFFILIATE COST COST INCOME
Texas Industries, Inc. $ - $ - $ 250 $ 74,778
Tidewater, Inc. - 5,467 - -
Toll Brothers, Inc. - 9,158 - 40,941
Trinity Industries, Inc. - 5,758 1,260 120,143
UCAR International, Inc. - - - 143,054
USG Corp. - 29,247 - 83,335
USX-U.S. Steel Group 17,774 22,030 3,336 181,622
USAir Group, Inc. - 25,245 - -
Varity Corp. - 12,208 - -
WHX Corp. - - - 17,032
TOTALS $ 386,709 $ 1,439,965 $ 76,799 $ 10,672,018
9. LITIGATION.
In late 1995 and early 1996, several individuals who purchased shares of
Micron Technology, Inc. ("Micron") in October and November 1995 filed
purported class action complaints against the fund, FMR, FMR Corp. and
Jeffrey Vinik, the fund's former portfolio manager. The complaints allege
that, in violation of a federal securities law and state statutory and
common law, the fund's former portfolio manager made materially misleading
statements regarding Micron and the fund's holding of Micron. The
defendants deny the allegations in the complaints and intend to defend the
lawsuits vigorously.
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, 1996, and the related statement of operations for the six
months then ended, the statement of changes in net assets for the six
months then ended and for the year ended March 31, 1996 and the financial
highlights for the six months ended September 30, 1996 and each of the five
years in the period ended March 31, 1996. 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, 1996 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, 1996, the results of its
operations for the six months then ended, the changes in its net assets for
the six months then ended and for the year ended March 31, 1996, and the
financial highlights for the six months ended September 30, 1996 and each
of the five years in the period ended March 31, 1996, in conformity with
generally accepted accounting principles.
/s/COOPERS & LYBRAND L.L.P.
COOPERS & LYBRAND L.L.P.
Boston, Massachusetts
November 5, 1996
TO WRITE FIDELITY
If more than one address is listed, 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.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0002
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
OVERNIGHT EXPRESS
Fidelity Investments
100 Crosby Parkway - KP2C
Covington, KY 41015-4399
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6I
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02210-0193
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 770001
Cincinnati, OH 45277-0003
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions - CP6R
400 East Las Colinas Blvd.
Irving, TX 75309-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
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
Robert Stansky, 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 *
ADVISORY BOARD
William O. McCoy
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
State Street Bank and Trust Company
North Quincy, 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
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress 1-800-544-5555
SM
* INDEPENDENT TRUSTEES
AUTOMATED LINE FOR QUICKEST SERVICE
