FIDELITY
MAGELLAN(REGISTERED TRADEMARK)
FUND
ANNUAL REPORT
MARCH 31, 1999
(2_FIDELITY_LOGOS)(REGISTERED TRADEMARK)
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on investing
strategies.
PERFORMANCE 4 How the fund has done over
time.
FUND TALK 6 The manager's review of fund
performance, strategy and
outlook.
INVESTMENT CHANGES 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 26 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 30 Notes to the financial
statements.
REPORT OF INDEPENDENT 35 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 36
OF SPECIAL NOTE 37
Standard & Poor's, S&P and S&P 500 are registered service marks of The
McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity
Distributors Corporation.
Other third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION
OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS
IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY,
ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO
INVESTMENT RISKS, INCLUDING THE POSSIBLE LOSS OF PRINCIPAL AMOUNTS
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photo_of_Edward_C_Johnson_3d)
DEAR SHAREHOLDER:
Breaking through 10,000 by the Dow Jones Industrial Average was the
big news in equity markets during March, as that milestone was the
last of six new highs the Dow recorded during the month. Renewed
strength in the energy and cyclical sectors contributed to the rally.
In fixed-income, Treasuries continued to struggle based on the
persistent strength of the economy, as yields on the 30-year benchmark
rose to their highest levels since August of 1998.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MARCH 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY MAGELLAN 25.63% 177.00% 501.76%
FIDELITY MAGELLAN (INCL. 21.87% 168.69% 483.71%
3.00% SALES CHARGE)
S&P 500 (registered trademark) 18.46% 220.69% 468.34%
Growth Funds Average 13.56% 158.00% 372.71%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the
Standard & Poor's 500 Index - a market capitalization-weighted index
of common stocks. To measure how the fund's performance stacked up
against its peers, you can compare it to the growth funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past one year average represents a peer
group of 1,022 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MARCH 31, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY MAGELLAN 25.63% 22.60% 19.66%
FIDELITY MAGELLAN (INCL. 21.87% 21.86% 19.29%
3.00% SALES CHARGE)
S&P 500 18.46% 26.25% 18.98%
Growth Funds Average 13.56% 20.36% 16.32%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$10,000 OVER 10 YEARS
Magellan S&P 500
00021 SP001
1989/03/31 9700.00 10000.00
1989/04/30 10187.57 10519.00
1989/05/31 10725.44 10945.02
1989/06/30 10632.38 10882.63
1989/07/31 11525.70 11865.33
1989/08/31 11827.20 12097.90
1989/09/30 12031.92 12048.29
1989/10/31 11654.12 11768.77
1989/11/30 11845.81 12008.86
1989/12/31 11919.93 12297.07
1990/01/31 11151.16 11471.94
1990/02/28 11380.19 11619.92
1990/03/31 11670.97 11927.85
1990/04/30 11376.21 11629.66
1990/05/31 12388.04 12763.55
1990/06/30 12441.89 12676.75
1990/07/31 12301.07 12636.19
1990/08/31 11095.81 11493.88
1990/09/30 10391.71 10934.13
1990/10/31 10263.31 10887.11
1990/11/30 11039.90 11590.42
1990/12/31 11382.50 11913.79
1991/01/31 12178.20 12433.23
1991/02/28 13235.61 13322.21
1991/03/31 13685.17 13644.60
1991/04/30 13735.83 13677.35
1991/05/31 14519.03 14268.21
1991/06/30 13665.87 13614.73
1991/07/31 14514.68 14249.17
1991/08/31 14960.85 14586.88
1991/09/30 14904.26 14343.28
1991/10/31 15104.50 14535.48
1991/11/30 14357.98 13949.70
1991/12/31 16052.56 15545.54
1992/01/31 16059.58 15256.40
1992/02/29 16384.79 15454.73
1992/03/31 15940.25 15153.36
1992/04/30 16176.56 15598.87
1992/05/31 16331.55 15675.31
1992/06/30 16043.89 15441.74
1992/07/31 16494.14 16073.31
1992/08/31 16136.44 15743.81
1992/09/30 16321.54 15929.59
1992/10/31 16436.61 15985.34
1992/11/30 16851.84 16530.44
1992/12/31 17178.58 16733.76
1993/01/31 17631.14 16874.33
1993/02/28 17999.20 17103.82
1993/03/31 18658.97 17464.71
1993/04/30 18841.63 17042.06
1993/05/31 19584.27 17498.79
1993/06/30 19857.38 17549.54
1993/07/31 20076.43 17479.34
1993/08/31 21257.07 18141.81
1993/09/30 21487.50 18002.11
1993/10/31 21501.73 18374.76
1993/11/30 20793.35 18200.20
1993/12/31 21414.39 18420.42
1994/01/31 22260.69 19046.71
1994/02/28 22097.48 18530.55
1994/03/31 21072.85 17722.62
1994/04/30 21284.43 17949.47
1994/05/31 21039.23 18243.84
1994/06/30 20126.40 17796.86
1994/07/31 20800.00 18380.60
1994/08/31 21785.23 19134.20
1994/09/30 21218.65 18665.42
1994/10/31 21936.32 19085.39
1994/11/30 20733.90 18390.30
1994/12/31 21026.64 18663.03
1995/01/31 20812.59 19146.96
1995/02/28 21980.39 19893.12
1995/03/31 22801.94 20480.16
1995/04/30 23862.72 21083.30
1995/05/31 24529.81 21926.00
1995/06/30 26398.24 22435.34
1995/07/31 28424.74 23179.30
1995/08/31 28671.33 23237.48
1995/09/30 29196.14 24218.10
1995/10/31 28450.03 24131.64
1995/11/30 29082.32 25191.02
1995/12/31 28769.36 25676.20
1996/01/31 29184.27 26550.22
1996/02/29 28993.54 26796.34
1996/03/31 29284.65 27054.39
1996/04/30 29472.03 27453.17
1996/05/31 29605.23 28161.19
1996/06/30 29577.55 28268.48
1996/07/31 28201.49 27019.58
1996/08/31 28913.24 27589.42
1996/09/30 30071.83 29142.15
1996/10/31 30783.59 29945.89
1996/11/30 32776.52 32209.51
1996/12/31 32131.55 31571.43
1997/01/31 33541.91 33544.02
1997/02/28 33091.71 33807.00
1997/03/31 31952.26 32417.87
1997/04/30 33378.56 34353.22
1997/05/31 35759.78 36444.64
1997/06/30 37240.39 38077.36
1997/07/31 40365.23 41107.18
1997/08/31 38569.68 38804.36
1997/09/30 40839.68 40929.67
1997/10/31 39449.05 39562.62
1997/11/30 40217.99 41393.97
1997/12/31 40675.82 42104.71
1998/01/31 41115.59 42570.39
1998/02/28 44232.34 45640.56
1998/03/31 46461.04 47977.82
1998/04/30 46994.73 48460.47
1998/05/31 46066.14 47627.44
1998/06/30 48028.82 49562.06
1998/07/31 47669.58 49034.23
1998/08/31 40287.61 41944.86
1998/09/30 42723.44 44631.85
1998/10/31 46013.57 48262.20
1998/11/30 49584.08 51187.37
1998/12/31 54353.53 54136.79
1999/01/31 57205.71 56400.79
1999/02/28 55379.23 54647.85
1999/03/31 58370.88 56834.31
IMATRL PRASUN SHR__CHT 19990331 19990409 101758 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Magellan Fund on March 31, 1989, and the current
3.00% sales charge was paid. As the chart shows, by March 31, 1999,
the value of the investment would have grown to $58,371 - a 483.71%
increase on the initial investment. For comparison, look at how the
Standard & Poor's 500 Index did over the same period. With dividends
and capital gains, if any, reinvested, the same $10,000 would have
grown to $56,834 - a 468.34% increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
The 12-month period that ended
March 31,1999, made history not
only for its milestones, but also for
the volatility throughout the
marketplace. The Dow Jones
Industrial Average passed the 10,000
mark, returning 13.09% for the
period, while the Standard & Poor's
500 Index returned 18.46%. The
technology-laden NASDAQ fought
through turbulence on its way toward
an impressive 34.62% return. The
period began amidst a stable
economic environment in the U.S., one
with an apparent resistance to the
instability that was beginning to shake
up world markets. The positive
sentiment quickly turned to fear in
late August, however, as the disarray
in Asian, Latin American and Russian
markets led investors to seek safe
harbor in U.S. Treasuries, driving their
yields to a 30-year low. Concurrently,
stocks suffered heavy losses, with the
Dow itself shedding over 1000 points
in the span of a week. The volatility in
the equity markets influenced the
Federal Reserve Board to intervene
with three 0.25% cuts to the fed funds
target rate in early-mid fall. These cuts
were the impetus the market needed,
as stocks rallied in response. The first
three months of 1999 saw continued
market advances, although marked by
periods of significant volatility and the
continued leadership of a narrow
band of mega-cap stocks.
(photograph of Robert Stansky)
An interview with Robert Stansky, Portfolio Manager of Fidelity
Magellan Fund
Q. BOB, HOW HAS THE FUND PERFORMED?
A. Over the past 12 months, we certainly experienced our share of
peaks and valleys as the market dropped quite dramatically late last
summer then rebounded strongly in the fall and winter months. For the
fund's fiscal year, returns were relatively strong. During the 12
months that ended March 31, 1999, the fund had a total return of
25.63%. That topped the total return of the fund's benchmark index,
the Standard & Poor's 500 Index, which was 18.46% during the same
period. The fund also beat the growth funds average, which was up
13.56% during the period, according to Lipper Inc.
Q. HOW DID THE FUND BEAT ITS BENCHMARK AND THE MAJORITY OF ITS PEERS
IN LIGHT OF THIS VOLATILE ENVIRONMENT?
A. Embedded in the volatility were opportunities. For example, when
stock prices fell so sharply last July and August, I saw an opening to
buy shares of companies whose prospects I believed remained attractive
over the long term. Due to the falling market, these stocks were
suddenly selling at much more attractive valuations, or stock prices
relative to earnings. Many of the positions I added to were large
technology names. Technology, as a percentage of the fund's assets,
grew from 17.6% on July 31, 1998, to 22.0% on October 31, 1998. Thus,
when the market - and technology stocks in particular - rallied in the
fourth quarter of 1998, the fund was well positioned and benefited
accordingly.
Q. WERE SOME OF THE STRONG-PERFORMING INTERNET NAMES AMONG THOSE
TECHNOLOGY STOCKS YOU PURCHASED?
A. They were. However, I've taken a measured approach to this sector.
Although I believe the Internet currently is the most exciting segment
of U.S. business, many Internet companies aren't yet making a profit
and their stocks are very volatile. Therefore, stocks directly tied to
the Internet thus far have made up a relatively small portion of the
fund. That said, the single largest positive contributor to the fund's
performance over the past year was America Online. AOL has experienced
tremendous growth in subscribers as a result of lower-priced personal
computers and the growing popularity of the Internet. In addition, the
company has substantially grown advertising revenue.
Q. HOW DO YOU ANALYZE INTERNET COMPANIES IF MANY DON'T YET HAVE ANY
EARNINGS?
A. It's not easy. I simply can't analyze the Internet sector the same
way I analyze other sectors. I do use some traditional, fundamental
analysis to evaluate a company's growth prospects. But that only goes
so far when many companies are young with new business models and no
earnings. Essentially, I'm trying to find companies that have a real
chance to be around in three years and dominate their niches. At the
same time, I evaluate investor psychology when it comes to Internet
stocks. The fact that I increased investments in Internet companies -
and held onto many of them as their prices rose quickly in the fourth
quarter - was due at least as much to my feel for the psychology
surrounding these stocks as it was to any numbers-related analysis.
Q. HOW ABOUT OTHER TECHNOLOGY COMPANIES THAT HELPED THE FUND?
A. Many were names that shareholders have been accustomed to seeing in
these reports over the past few years. Larger technology companies
such as Microsoft, Cisco Systems, EMC Corp. and Intel all continued to
dominate their respective markets and continued to show excellent
business prospects. However, due to the rapid rise in the prices of
many technology stocks, I recently became concerned that the
valuations of some companies were reflecting a future earnings
scenario that was a bit too idyllic. Therefore, I recently took some
profits and pared back the fund's holdings in certain tech stocks. The
fund held 20.8% of investments in the sector at the end of the period.
It remained the largest sector representation in the fund, but was
down somewhat from recent levels.
Q. INDEED, LARGE CAPITALIZATION STOCKS DOMINATED THE STOCK MARKET'S
PERFORMANCE OVER THE PAST YEAR IN MANY INDUSTRIES . . .
A. That's true. Money flowing into the stock market has gravitated
toward larger, more successful brand-name companies. But not all large
stocks did well. You had to be in the right sectors and, more
importantly, the right names. For example, the fund benefited from
overweighting retail stocks relative to the broad market during the
period. Wal-Mart, Home Depot and the Gap benefited from a strong
economy, but, perhaps more importantly, all have recently out-executed
their smaller competitors. In health care, large U.S. pharmaceutical
companies were the best performers. However, in some industries,
bigger was not necessarily better. The fund's performance was helped
by its underweighting in global consumer products companies and
certain cyclical stocks. Many of these companies underperformed during
the period due mainly to concerns over economic slowdowns in certain
economies around the world.
Q. THOSE GLOBAL ECONOMIC WORRIES CONTRIBUTED TO SLUMPING PERFORMANCE
BY FINANCIAL STOCKS LATE LAST SUMMER. WHAT'S THE LATEST ON THAT
SECTOR?
A. Some financial sector stocks rebounded nicely over the past six
months due to a combination of factors. Concerns about the health of
overseas economies eased somewhat. In addition, companies that do a
significant amount of business related to the U.S. capital markets -
mainly the markets for stocks and bonds - benefited as the stock
market rebounded through the fall and winter months. Thus, the fund's
performance benefited from holdings in companies such as Citigroup and
Chase Manhattan. The fund's investments in banks that are more
regional in nature and don't have as much exposure to capital markets
- - such as Wells Fargo - didn't fare nearly as well.
Q. BOB, DO YOU HAVE ANY REGRETS ABOUT THE FUND'S PERFORMANCE DURING
THE PERIOD?
A. Sure I do. As I look back, I could have been more aggressive in
adding to positions in certain technology and other stocks during the
market downturn of last year. And, certainly, there are stocks that I
wish I had owned but didn't. However, hindsight is always 20/20. I am
pleased that there were few stocks in the fund that negatively
impacted performance to a significant degree.
Q. WHAT'S YOUR OUTLOOK FOR THE REST OF 1999?
A. I'm generally optimistic, but it's important to keep in mind we've
already experienced strong gains thus far in 1999. And we've
experienced four straight calendar years with greater than 20% gains
in the broad market. I believe stock performance of that magnitude
will be difficult to sustain in the near term. Valuations remain at
historically high levels, and I'm concerned about earnings and
interest rates. Corporate earnings may not be strong enough to sustain
these valuation levels indefinitely. And if inflation returns in a
meaningful way we could see a compression in valuations and lower
stock prices. I'll continue to focus on getting the earnings forecasts
right and paring back where I believe valuations are too high. At the
same time, I want to be ready should a market drop present buying
opportunities in stocks where I believe prospects remain strong.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: to increase the value
of the fund's shares 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 March 31, 1999,
more than $90.7 billion
MANAGER: Robert Stansky,
since 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-
1987; joined Fidelity in
1983
BOB STANSKY ON THE
RECENT DOMINANCE OF
LARGE-CAP STOCKS:
"It's been an unusually narrow
market over the past couple of years
or so; the bulk of the gains has been
concentrated in a relatively small
number of very large stocks. Broadly
speaking, many large companies
have simply operated more
efficiently than smaller companies
and taken advantage of their scale
and dominance in the marketplace.
Electronic information systems have
allowed large companies to act
quickly in order to better gain the
benefits of size, strengthen earnings
and gain market share.
"It's difficult, if not impossible, to
know how long these market
conditions will last. The business
prospects of many large companies
continued to look good at the end of
the period. However, the wild card
- - in terms of stock performance -
is valuations. Although earnings for
many of these companies have been
strong, they generally haven't risen
as quickly as valuations. At some
point, the stocks may need to take
a breather to allow the earnings to
catch up. Certainly, the fund
recently has benefited from its
holdings in large stocks. At the same
time, it's important to recognize that
a sudden shift in market sentiment
toward small companies could
negatively impact the fund's
performance in the near term
relative to funds that have
concentrated their investments in
that area of the market."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF MARCH
31, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE STOCKS 6 MONTHS AGO
General Electric Co. 4.2 3.9
Microsoft Corp. 4.1 3.6
MCI WorldCom, Inc. 2.4 1.7
America Online, Inc. 2.3 1.5
Home Depot, Inc. 2.2 1.8
Cisco Systems, Inc. 2.0 2.0
Merck & Co., Inc. 2.0 1.9
Citigroup, Inc. 1.7 1.1
Wal-Mart Stores, Inc. 1.7 1.8
Time Warner, Inc. 1.6 1.2
TOP FIVE MARKET SECTORS AS OF
MARCH 31, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE MARKET SECTORS 6
MONTHS AGO
TECHNOLOGY 20.8 21.6
FINANCE 12.9 11.2
HEALTH 10.3 11.7
RETAIL & WHOLESALE 10.0 9.3
UTILITIES 7.3 6.2
</TABLE>
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF MARCH 31, 1999 *
Stocks 93.4%
Short-term
investments 6.6%
*FOREIGN
INVESTMENTS 4.4%
Row: 1, Col: 1, Value: 93.40000000000001
Row: 1, Col: 2, Value: 6.6
AS OF SEPTEMBER 30, 1998 **
Stocks 93.6%
Short-term
investments 6.4%
**FOREIGN
INVESTMENTS 4.8%
Row: 1, Col: 1, Value: 93.59999999999999
Row: 1, Col: 2, Value: 6.4
INVESTMENTS MARCH 31, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 93.4%
SHARES VALUE (NOTE 1) (000S)
AEROSPACE & DEFENSE - 1.4%
AEROSPACE & DEFENSE - 1.2%
AlliedSignal, Inc. 7,213,600 $ 354,819
Boeing Co. 2,908,600 99,256
Gulfstream Aerospace Corp. (a) 938,000 40,686
Textron, Inc. 1,511,400 116,945
United Technologies Corp. 3,321,900 449,910
1,061,616
DEFENSE ELECTRONICS - 0.1%
Raytheon Co.:
Class A 400,000 23,100
Class B 1,751,500 102,682
125,782
SHIP BUILDING & REPAIR - 0.1%
General Dynamics Corp. 903,800 58,069
TOTAL AEROSPACE & DEFENSE 1,245,467
BASIC INDUSTRIES - 1.2%
CHEMICALS & PLASTICS - 0.7%
du Pont (E.I.) de Nemours & 6,372,300 369,992
Co.
Monsanto Co. 3,882,800 178,366
Synetic, Inc. (a)(c) 1,157,582 64,680
Trivest 1992 Special Fund 26.6 (d) 3,048
Ltd.
616,086
IRON & STEEL - 0.1%
Nucor Corp. 2,492,400 109,821
METALS & MINING - 0.2%
Alcoa, Inc. 3,140,000 129,329
PACKAGING & CONTAINERS - 0.0%
Owens-Illinois, Inc. (a) 742,700 18,568
PAPER & FOREST PRODUCTS - 0.2%
Fort James Corp. 737,500 23,370
Kimberly-Clark Corp. 3,089,800 148,117
Louisiana-Pacific Corp. 1,932,600 35,995
207,482
TOTAL BASIC INDUSTRIES 1,081,286
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
CONSTRUCTION & REAL ESTATE -
1.5%
BUILDING MATERIALS - 0.8%
Lafarge Corp. (c) 4,459,158 $ 124,856
Masco Corp. 8,565,200 241,967
Newell Rubbermaid, Inc. 276,300 13,124
Owens-Corning 1,779,100 56,598
Sherwin-Williams Co. 3,353,400 94,314
Southdown, Inc. 1,180,892 63,399
USG Corp. 2,413,000 123,968
718,226
CONSTRUCTION - 0.2%
Centex Corp. 1,200,000 40,050
Oakwood Homes Corp. (c) 3,719,200 52,301
Pulte Corp. (c) 2,800,000 58,275
150,626
REAL ESTATE INVESTMENT TRUSTS
- - 0.5%
Boston Properties, Inc. 1,105,000 34,946
Crescent Real Estate Equities 2,101,900 45,191
Co.
Equity Office Properties Trust 2,086,400 53,073
Equity Residential Properties 1,271,500 52,449
Trust (SBI)
Host Marriott Corp. (c) 12,528,400 139,378
Public Storage, Inc. 1,136,300 28,408
Starwood Hotels & Resorts 4,400,327 125,684
Worldwide, Inc.
479,129
TOTAL CONSTRUCTION & REAL 1,347,981
ESTATE
DURABLES - 3.3%
AUTOS, TIRES, & ACCESSORIES -
1.9%
AutoZone, Inc. (a) 2,935,800 89,175
Danaher Corp. 2,507,000 130,991
Delphi Automotive Systems 1,000,000 17,750
Corp. (a)
Ford Motor Co. 14,104,000 800,402
General Motors Corp. 5,697,600 494,979
Lear Corp. (a) 1,116,300 47,652
Pep Boys-Manny, Moe & Jack 1,255,000 19,139
Republic Industries, Inc. (a) 10,879,927 134,639
1,734,727
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
DURABLES - CONTINUED
CONSUMER DURABLES - 0.2%
Minnesota Mining & 2,509,100 $ 177,519
Manufacturing Co.
CONSUMER ELECTRONICS - 0.5%
Black & Decker Corp. (c) 4,780,000 264,991
General Motors Corp. Class H 56,400 2,845
(a)
Maytag Corp. 2,600,000 156,975
Sony Corp. sponsored ADR 500,000 45,656
Whirlpool Corp. 511,000 27,786
498,253
HOME FURNISHINGS - 0.3%
Leggett & Platt, Inc. (c) 12,416,700 248,334
TEXTILES & APPAREL - 0.4%
Liz Claiborne, Inc. 2,547,800 83,122
NIKE, Inc. Class B 3,398,500 196,051
Polo Ralph Lauren Corp. Class 2,333,700 46,382
A (a)(c)
Warnaco Group, Inc. Class A 800,000 19,750
345,305
TOTAL DURABLES 3,004,138
ENERGY - 5.9%
ENERGY SERVICES - 0.8%
Baker Hughes, Inc. 2,300,000 55,919
Halliburton Co. 6,799,600 261,785
Schlumberger Ltd. 7,746,300 466,230
783,934
OIL & GAS - 5.1%
Anadarko Petroleum Corp. (c) 6,510,000 245,753
Apache Corp. 2,659,715 69,319
BP Amoco PLC 12,376,935 208,217
BP Amoco PLC sponsored ADR 3,538,421 357,159
Burlington Resources, Inc. 2,282,100 91,141
Canadian Natural Resources 2,702,600 46,575
Ltd. (a)
Chevron Corp. 5,085,100 449,714
Coastal Corp. (The) 4,634,000 152,922
Cooper Cameron Corp. (a) 1,671,500 56,622
Elf Aquitaine 1,935,600 260,580
Exxon Corp. 11,485,500 810,446
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Mobil Corp. 6,631,700 $ 583,590
Occidental Petroleum Corp. 8,571,400 154,285
Poco Petroleums Ltd. (a) 3,481,700 26,770
Renaissance Energy Ltd. (a) 1,425,000 16,624
Royal Dutch Petroleum Co. (NY 7,932,700 412,500
Registry Gilder 1.25)
Shell Transport & Trading Co. 13,327,100 90,235
PLC (Reg.)
Texaco, Inc. 6,352,000 360,476
Total SA Class B 1,604,550 195,755
USX-Marathon Group 550,000 15,125
4,603,808
TOTAL ENERGY 5,387,742
FINANCE - 12.9%
BANKS - 4.1%
Banacci SA de CV (a) 3,840,000 7,704
Bank of New York Co., Inc. 400,000 14,375
Bank One Corp. 7,903,557 435,190
BankAmerica Corp. 12,802,754 904,195
BankBoston Corp. 3,504,900 151,806
Chase Manhattan Corp. 11,576,200 941,290
Comerica, Inc. 1,921,000 119,942
Synovus Finanical Corp. 1,709,775 34,944
U.S. Bancorp 6,411,600 218,395
Wells Fargo & Co. 24,155,000 846,935
3,674,776
CREDIT & OTHER FINANCE - 3.6%
American Express Co. 2,651,500 311,551
Associates First Capital 13,430,774 604,385
Corp. Class A
Citigroup, Inc. 24,689,889 1,577,067
Fleet Financial Group, Inc. 4,922,000 185,190
Greenpoint Financial Corp. 2,351,800 81,725
Household International, Inc. 3,620,395 165,181
MBNA Corp. 1,300,000 31,038
Providian Financial Corp. 2,601,950 286,215
3,242,352
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FINANCE - CONTINUED
FEDERAL SPONSORED CREDIT - 1.9%
Fannie Mae 14,048,000 $ 972,824
Freddie Mac 12,211,600 697,588
SLM Holding Corp. 481,950 20,121
1,690,533
INSURANCE - 2.6%
Aetna, Inc. 404,900 33,607
AFLAC, Inc. 4,504,800 245,230
Allstate Corp. 9,125,000 338,195
American International Group, 10,332,244 1,246,327
Inc.
Chubb Corp. (The) 900,000 52,706
Hartford Financial Services 400,000 22,725
Group, Inc.
Old Republic International 2,087,700 38,101
Corp.
Progressive Corp. 1,090,800 156,530
Reliastar Financial Corp. 1,707,043 72,763
UNUM Corp. 4,033,400 191,839
2,398,023
SAVINGS & LOANS - 0.2%
Charter One Financial, Inc. 2,590,440 74,758
Washington Mutual, Inc. 3,293,750 134,632
209,390
SECURITIES INDUSTRY - 0.5%
Morgan Stanley, Dean Witter & 4,750,035 474,707
Co.
TOTAL FINANCE 11,689,781
HEALTH - 10.3%
DRUGS & PHARMACEUTICALS - 7.7%
American Home Products Corp. 14,195,200 926,237
Biogen, Inc. (a) 505,000 57,728
Bristol-Myers Squibb Co. 15,601,800 1,003,391
Elan Corp. PLC sponsored ADR 2,101,000 146,545
(a)
Lilly (Eli) & Co. 9,451,200 802,171
Merck & Co., Inc. 22,775,200 1,826,286
Pfizer, Inc. 4,626,700 641,955
Rhone-Poulenc SA Class A 2,000,932 88,041
Schering-Plough Corp. 17,657,200 976,664
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS -
CONTINUED
Warner-Lambert Co. 8,034,100 $ 531,757
XOMA Ltd. (a) 3,030 7
7,000,782
MEDICAL EQUIPMENT & SUPPLIES
- - 2.1%
Abbott Laboratories 1,370,700 64,166
Baxter International, Inc. 300,000 19,800
Becton, Dickinson & Co. 2,546,200 97,551
Boston Scientific Corp. (a) 9,662,000 391,915
Cardinal Health, Inc. 170,000 11,220
Johnson & Johnson 10,300,000 964,981
McKesson HBOC, Inc. 2,999,510 197,968
Medtronic, Inc. 2,209,000 158,496
St. Jude Medical, Inc. (a) 1,198,900 29,223
U.S. Surgical Corp. rights 469 -
6/30/00 (a)
1,935,320
MEDICAL FACILITIES MANAGEMENT
- - 0.5%
HEALTHSOUTH Corp. (a) 17,033,200 176,719
Tenet Healthcare Corp. (a) 1,192,195 22,577
United HealthCare Corp. 2,694,100 141,777
Universal Health Services, 788,100 34,085
Inc. Class B (a)
Wellpoint Health Networks, 1,000,000 75,813
Inc. (a)
450,971
TOTAL HEALTH 9,387,073
INDUSTRIAL MACHINERY &
EQUIPMENT - 6.5%
ELECTRICAL EQUIPMENT - 4.5%
Emerson Electric Co. 5,282,400 279,637
General Electric Co. 34,203,100 3,783,704
SLI, Inc. (a) 519,000 10,899
4,074,240
INDUSTRIAL MACHINERY &
EQUIPMENT - 1.9%
Case Corp. (c) 4,140,000 105,053
Caterpillar, Inc. 470,100 21,595
Cooper Industries, Inc. 1,150,000 49,019
Deere & Co. 1,260,000 48,668
Illinois Tool Works, Inc. 6,400,000 396,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
Ingersoll-Rand Co. 902,850 $ 44,804
Tyco International Ltd. 14,602,206 1,047,708
1,712,847
POLLUTION CONTROL - 0.1%
Republic Services, Inc. Class 2,000,000 32,375
A (a)
Waste Management, Inc. 1,652,500 73,330
105,705
TOTAL INDUSTRIAL MACHINERY & 5,892,792
EQUIPMENT
MEDIA & LEISURE - 6.0%
BROADCASTING - 3.3%
CBS Corp. 13,754,916 563,092
Clear Channel Communications, 8,249,680 553,244
Inc. (a)
Comcast Corp. Class A 1,275,000 80,245
(special)
Cox Communications, Inc. 1,044,700 79,005
Class A (a)
Entercom Communications Corp. 81,000 2,865
(a)
Heftel Broadcasting Corp. 663,800 28,792
Class A (a)
Infinity Broadcasting Corp. 3,061,500 78,834
Class A (a)
MediaOne Group, Inc. 2,450,000 155,575
Nielsen Media Research, Inc. 472,966 11,676
Time Warner, Inc. 19,859,789 1,411,286
Univision Communications, 595,000 29,750
Inc. Class A (a)
USA Networks, Inc. (a) 594,800 21,301
3,015,665
ENTERTAINMENT - 1.4%
Alliance Gaming Corp. (a)(e) 5,072 18
Disney (Walt) Co. 10,157,000 316,137
Fox Entertainment Group, Inc. 1,988,000 53,925
(a)
News Corp. Ltd. ADR 3,900,000 115,050
Park Place Entertainment 3,729,200 28,202
Corp. (a)
SFX Entertainment, Inc. Class 641,000 41,385
A (a)
Viacom, Inc. Class B 8,854,400 743,216
(non-vtg.) (a)
1,297,933
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - 0.1%
Extended Stay America, Inc. 5,859,603 $ 59,695
(a)(c)
Hilton Hotels Corp. 3,729,200 52,442
112,137
PUBLISHING - 0.4%
Gannet, Inc. 2,910,400 183,355
Harcourt General, Inc. 848,900 37,617
McGraw-Hill Companies, Inc. 326,000 17,767
Times Mirror Co. Class A 697,300 37,698
Tribune Co. 823,100 53,862
Ziff-Davis, Inc. (a) 54,600 1,037
331,336
RESTAURANTS - 0.8%
Host Marriott Services Corp. 2,832,100 19,117
(c)
McDonald's Corp. 14,394,800 652,264
Starbucks Corp. (a) 400,000 11,225
Tricon Global Restaurants, 500,000 35,125
Inc. (a)
717,731
TOTAL MEDIA & LEISURE 5,474,802
NONDURABLES - 4.1%
BEVERAGES - 1.0%
Coca-Cola Co. (The) 5,066,800 310,975
Coca-Cola Enterprises, Inc. 325,000 9,831
Pepsi Bottling Group, Inc. (a) 1,000,000 23,000
PepsiCo, Inc. 12,524,300 490,796
Seagram Co. Ltd. 1,800,000 90,376
Stroh Brewery Co. warrants 21,307 76
7/1/01 (a)
925,054
FOODS - 0.1%
Bestfoods 1,000,000 47,000
Kellogg Co. 200,000 6,763
53,763
HOUSEHOLD PRODUCTS - 2.0%
Avon Products, Inc. 2,346,000 110,409
Clorox Co. 1,102,848 129,240
Gillette Co. 9,575,800 569,162
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - CONTINUED
Procter & Gamble Co. 9,047,300 $ 886,070
Unilever NV (NY shares) 1,529,700 101,629
1,796,510
TOBACCO - 1.0%
Philip Morris Companies, Inc. 25,970,200 913,826
TOTAL NONDURABLES 3,689,153
RETAIL & WHOLESALE - 10.0%
APPAREL STORES - 1.4%
Gap, Inc. 11,496,200 773,838
Intimate Brands, Inc. Class A 1,090,300 52,471
Limited, Inc. (The) 7,400,400 293,241
TJX Companies, Inc. 5,496,800 186,891
1,306,441
DRUG STORES - 0.6%
CVS Corp. 10,476,286 497,624
GENERAL MERCHANDISE STORES -
3.1%
Consolidated Stores Corp. (a) 2,291,168 69,451
Costco Companies, Inc. (a) 1,555,500 142,425
Dayton Hudson Corp. 13,694,300 912,383
Federated Department Stores, 4,015,700 161,130
Inc. (a)
Neiman-Marcus Group, Inc. (a) 668,700 15,129
Wal-Mart Stores, Inc. 16,472,500 1,518,559
2,819,077
GROCERY STORES - 0.8%
Meyer (Fred), Inc. (a) 1,905,000 112,157
Safeway, Inc. (a) 11,354,400 582,623
694,780
RETAIL & WHOLESALE,
MISCELLANEOUS - 4.1%
Bed Bath & Beyond, Inc. (a) 500,000 18,250
Home Depot, Inc. 32,304,850 2,010,977
Lowe's Companies, Inc. 13,247,000 801,444
Office Depot, Inc. (a) 8,644,400 318,222
Staples, Inc. (a) 15,050,000 494,769
Tandy Corp. 1,522,600 97,161
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE,
MISCELLANEOUS - CONTINUED
Valley Media, Inc. (a) 35,800 $ 814
Williams-Sonoma, Inc. (a) 500,000 14,125
3,755,762
TOTAL RETAIL & WHOLESALE 9,073,684
SERVICES - 1.4%
ADVERTISING - 0.9%
Omnicom Group, Inc. 8,151,576 651,617
Outdoor Systems, Inc. (a) 6,175,437 185,263
836,880
SERVICES - 0.5%
Cendant Corp. (a) 11,287,000 177,770
Manpower, Inc. 2,955,900 69,094
Rentokil Initial PLC 9,089,735 55,671
Robert Half International, 3,338,950 109,559
Inc. (a)
Service Corp. International 1,200,000 17,100
429,194
TOTAL SERVICES 1,266,074
TECHNOLOGY - 20.8%
COMMUNICATIONS EQUIPMENT - 4.5%
ADC Telecommunications, Inc. 500,000 23,844
(a)
Ascend Communications, Inc. 4,823,000 403,625
(a)
Cisco Systems, Inc. (a) 16,830,200 1,843,959
Intermedia Communications, 641,000 17,067
Inc. (a)
Lucent Technologies, Inc. 7,390,124 796,286
Newbridge Networks Corp. (a) 2,817,200 87,763
OY Nokia AB:
Series A 1,200,000 186,900
sponsored ADR 4,261,400 663,713
Premisys Communications, Inc. 500,000 4,313
(a)
Tellabs, Inc. (a) 300,000 29,325
4,056,795
COMPUTER SERVICES & SOFTWARE
- - 8.5%
America Online, Inc. 14,068,000 2,053,928
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
Autobytel.com Inc (a) 40,400 $ 1,692
Automatic Data Processing, 1,600,000 66,200
Inc.
Autoweb.Com, Inc. (a) 30,500 1,087
BMC Software, Inc. 4,017,700 148,906
Cadence Design Systems, Inc. 200,000 5,150
(a)
Ceridian Corp. (a) 2,501,400 91,457
CompUSA, Inc. (a) 1,885,700 13,200
Computer Associates 2,852,800 101,453
International, Inc.
Compuware Corp. (a) 6,022,000 143,775
Critical Path, Inc. (a) 19,900 1,532
DST Systems, Inc. (a) 200,400 12,037
Earthlink Network, Inc. (a) 100,000 6,000
Electronic Arts, Inc. (a) 1,711,100 81,277
Electronic Data Systems Corp. 300,000 14,606
Equifax, Inc. 870,170 29,912
First Data Corp. 4,924,000 210,501
Healtheon Corp. (a) 91,400 3,887
IMS Health, Inc. 2,837,800 94,002
Keane, Inc. (a) 800,000 17,050
Lycos, Inc. (a) 1,600,000 137,700
Microsoft Corp. (a) 41,395,400 3,710,063
Miningco.Com, Inc. (a) 13,700 1,226
OneMain.com, Inc. (a) 79,300 2,875
Oracle Corp. (a) 23,123,400 609,880
Parametric Technology Corp. 3,405,000 67,249
(a)
Priceline.Com, Inc. (a) 36,900 3,058
Siebel Systems, Inc. (a) 750,000 35,625
7,665,328
COMPUTERS & OFFICE EQUIPMENT
- - 3.8%
Comdisco, Inc. 103,800 1,855
Compaq Computer Corp. 9,265,500 293,601
Dell Computer Corp. (a) 7,376,800 301,527
EMC Corp. (a) 7,360,482 940,302
International Business 4,803,400 851,403
Machines Corp.
Pitney Bowes, Inc. 4,875,600 310,820
Seagate Technology, Inc. (a) 2,255,300 66,672
Sun Microsystems, Inc. (a) 2,750,000 343,578
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT
- - CONTINUED
Tech Data Corp. (a) 788,800 $ 18,093
Xerox Corp. 6,400,000 341,600
3,469,451
ELECTRONIC INSTRUMENTS - 0.1%
Thermo Electron Corp. (a) 3,133,200 42,494
Thermo Instrument Systems, 200,000 2,888
Inc. (a)
Waters Corp. (a) 765,800 80,457
125,839
ELECTRONICS - 3.8%
Analog Devices, Inc. (a) 1,453,866 43,253
Intel Corp. 10,698,800 1,274,495
Linear Technology Corp. 3,176,600 162,801
LSI Logic Corp. (a) 300,000 9,356
Maxim Integrated Products, 1,889,200 102,253
Inc. (a)
Micron Technology, Inc. (a) 3,717,000 179,345
Motorola, Inc. 6,516,200 477,312
Rambus, Inc. (a) 1,105,600 71,173
Solectron Corp. (a) 1,230,200 59,742
Texas Instruments, Inc. 10,408,800 1,033,073
Xilinx, Inc. (a) 1,200,000 48,675
3,461,478
PHOTOGRAPHIC EQUIPMENT - 0.1%
Fuji Photo Film Co. Ltd. 1,516,000 57,145
TOTAL TECHNOLOGY 18,836,036
TRANSPORTATION - 0.8%
AIR TRANSPORTATION - 0.1%
AMR Corp. (a) 878,100 51,424
Delta Air Lines, Inc. 860,000 59,770
111,194
RAILROADS - 0.6%
Burlington Northern Santa Fe 3,905,220 128,384
Corp.
CSX Corp. 5,463,700 212,743
Norfolk Southern Corp. 5,935,800 156,557
497,684
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TRANSPORTATION - CONTINUED
TRUCKING & FREIGHT - 0.1%
CNF Transportation, Inc. 642,000 $ 24,276
Landstar System, Inc. (a)(c) 621,200 20,577
Swift Transportation Co., 2,633,250 68,135
Inc. (a)(c)
112,988
TOTAL TRANSPORTATION 721,866
UTILITIES - 7.3%
CELLULAR - 0.5%
AirTouch Communications, Inc. 1,340,000 129,478
(a)
ALLTEL Corp. 500,000 31,188
Nextel Communications, Inc. 2,950,000 108,044
Class A (a)
Teleglobe, Inc. 400,000 12,169
Vodafone Group PLC sponsored 782,900 146,989
ADR
427,868
ELECTRIC UTILITY - 0.2%
AES Corp. (a) 57,900 2,157
Duke Energy Corp. 1,382,000 75,492
PG&E Corp. 5,413,048 168,143
245,792
GAS - 0.2%
Enron Corp. 2,481,300 159,424
TELEPHONE SERVICES - 6.4%
Ameritech Corp. 3,018,400 174,690
AT&T Corp. 17,101,901 1,364,945
Bell Atlantic Corp. 5,979,100 309,045
BellSouth Corp. 10,057,400 402,925
GTE Corp. 6,970,800 421,733
Level 3 Communications, Inc. 500,000 36,406
(a)
MCI WorldCom, Inc. (a) 24,327,341 2,154,490
Metromedia Fiber Network, 328,400 17,015
Inc. Class A (a)
Qwest Communications 2,250,000 162,211
International, Inc. (a)
SBC Communications, Inc. 7,832,800 369,121
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
Sprint Corp. (FON Group) 3,044,700 $ 298,761
Telecom Italia Spa 9,218,712 96,221
5,807,563
TOTAL UTILITIES 6,640,647
TOTAL COMMON STOCKS 84,738,522
(Cost $47,576,249)
PREFERRED STOCKS - 0.0%
CONVERTIBLE PREFERRED STOCKS
- - 0.0%
BASIC INDUSTRIES - 0.0%
CHEMICALS & PLASTICS - 0.0%
Sealed Air Corp. Series A, 416,242 20,604
$2.00
NONCONVERTIBLE PREFERRED
STOCKS - 0.0%
INDUSTRIAL MACHINERY &
EQUIPMENT - 0.0%
ELECTRICAL EQUIPMENT - 0.0%
Ampex Corp. 8% non-cumulative 1,379 2,151
(a)
UTILITIES - 0.0%
TELEPHONE SERVICES - 0.0%
Telecom Italia Spa Risp 1,421,000 8,435
TOTAL NONCONVERTIBLE 10,586
PREFERRED STOCKS
TOTAL PREFERRED STOCKS 31,190
(Cost $31,219)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NONCONVERTIBLE BONDS - 0.0%
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT (000S)
FINANCE - 0.0%
CREDIT & OTHER FINANCE - 0.0%
Macsaver Financial Services, Ba1 $ 510 405
Inc. 7.4% 2/15/02 (Cost $422)
COMMERCIAL MORTGAGE
SECURITIES - 0.0%
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
Bardell Associates Note Trust - $ 4,168 $ 4,428
12.5%, 11/1/08 (e) (Cost
$4,237)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CASH EQUIVALENTS - 6.6%
MATURITY AMOUNT (000S)
Investments in repurchase $ 3,700,068 3,699,562
agreements (U.S. Treasury
obligations), in a joint
trading account at 4.92%,
dated 3/31/99 due 4/1/99
SHARES
Taxable Central Cash Fund (b) 2,298,719,503 2,298,720
TOTAL CASH EQUIVALENTS 5,998,282
(Cost $5,998,282)
TOTAL INVESTMENT IN $ 90,772,827
SECURITIES - 100%
(Cost $53,610,409)
</TABLE>
LEGEND
(a) Non-income producing
(b) At period end, the seven-day yield on the Taxable Central Cash
Fund was 4.86%. The yield refers to the income earned by investing in
the fund over the seven-day period, expressed as an annual percentage.
(c) Affiliated company
(d) Share amount represents number of units held.
(e) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
SECURITY ACQUISITION DATE ACQUISITION COST (000S)
Alliance Gaming Corp. 7/28/98 $ -
Bardell Associates Note Trust 4/19/94 $ 4,237
12.5%, 11/1/08
INCOME TAX INFORMATION
At March 31, 1999, the aggregate cost of investment securities for
income tax purposes was $53,779,643,000. Net unrealized appreciation
aggregated $36,993,184,000, of which $38,446,286,000 related to
appreciated investment securities and $1,453,102,000 related to
depreciated investment securities.
The fund hereby designates approximately $3,599,652,000 as a capital
gain dividend for the purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNTS) MARCH 31,
1999
ASSETS
Investment in securities, at $ 90,772,827
value (including repurchase
agreements of $3,699,562)
(cost $53,610,409) - See
accompanying schedule
Receivable for investments 342,488
sold
Receivable for fund shares 124,248
sold
Dividends receivable 93,773
Interest receivable 9,471
Other receivables 7,983
TOTAL ASSETS 91,350,790
LIABILITIES
Payable for investments $ 378,750
purchased
Payable for fund shares 210,366
redeemed
Accrued management fee 32,740
Other payables and accrued 14,076
expenses
TOTAL LIABILITIES 635,932
NET ASSETS $ 90,714,858
Net Assets consist of:
Paid in capital $ 48,161,895
Undistributed net investment 178,509
income
Accumulated undistributed net 5,212,401
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 37,162,053
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 699,128 $ 90,714,858
shares outstanding
NET ASSET VALUE and $129.75
redemption price per share
($90,714,858 (divided by)
699,128 shares)
Maximum offering price per $133.76
share (100/97.00 of $129.75)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED MARCH 31, 1999
INVESTMENT INCOME $ 784,173
Dividends (including $19,650
received from affiliated
issuers)
Interest 168,581
TOTAL INCOME 952,754
EXPENSES
Management fee Basic fee $ 445,647
Performance adjustment (119,834)
Transfer agent fees 133,625
Accounting fees and expenses 1,194
Non-interested trustees' 434
compensation
Custodian fees and expenses 2,338
Registration fees 2,125
Audit 215
Legal 610
Miscellaneous 122
Total expenses before 466,476
reductions
Expense reductions (11,484) 454,992
NET INVESTMENT INCOME 497,762
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 7,012,810
(including realized gain of
$165,561 on sales of
investments in affiliated
issuers)
Foreign currency transactions (1,046) 7,011,764
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 10,747,936
Assets and liabilities in (95) 10,747,841
foreign currencies
NET GAIN (LOSS) 17,759,605
NET INCREASE (DECREASE) IN $ 18,257,367
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED MARCH 31, 1999 YEAR ENDED MARCH 31, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 497,762 $ 474,821
income
Net realized gain (loss) 7,011,764 4,386,409
Change in net unrealized 10,747,841 17,839,293
appreciation (depreciation)
NET INCREASE (DECREASE) IN 18,257,367 22,700,523
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (449,343) (794,010)
From net investment income
From net realized gain (3,441,624) (3,324,791)
TOTAL DISTRIBUTIONS (3,890,967) (4,118,801)
Share transactions Net 14,971,374 11,459,995
proceeds from sales of shares
Reinvestment of distributions 3,818,924 4,050,132
Cost of shares redeemed (14,410,125) (13,367,016)
NET INCREASE (DECREASE) IN 4,380,173 2,143,111
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 18,746,573 20,724,833
IN NET ASSETS
NET ASSETS
Beginning of period 71,968,285 51,243,452
End of period (including $ 90,714,858 $ 71,968,285
undistributed net investment
income of $178,509 and
$152,096, respectively)
OTHER INFORMATION
Shares
Sold 132,746 119,540
Issued in reinvestment of 34,759 44,167
distributions
Redeemed (129,759) (141,304)
Net increase (decrease) 37,746 22,403
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED MARCH 31, 1999 1998 1997 1996 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 108.82 $ 80.20 $ 87.52 $ 72.44 $ 69.72
of period
Income from Investment
Operations
Net investment income .73 C .73 C 1.38 C .79 .27
Net realized and unrealized 26.02 34.35 5.25 19.57 5.22
gain (loss)
Total from investment 26.75 35.08 6.63 20.36 5.49
operations
Less Distributions
From net investment income (.67) (1.25) (1.10) (.59) (.14)
From net realized gain (5.15) (5.21) (12.85) (4.69) (2.63)
Total distributions (5.82) (6.46) (13.95) (5.28) (2.77)
Net asset value, end of period $ 129.75 $ 108.82 $ 80.20 $ 87.52 $ 72.44
TOTAL RETURN A, B 25.63% 45.41% 9.11% 28.43% 8.21%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 90,715 $ 71,968 $ 51,243 $ 56,179 $ 39,803
(in millions)
Ratio of expenses to average .62% .62% .66% .95% .99%
net assets
Ratio of expenses to average .60% D .61% D .64% D .92% D .96% D
net assets after expense
reductions
Ratio of net investment .66% .77% 1.75% .95% .39%
income to average net assets
Portfolio turnover rate 37% 34% 67% 155% 120%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE.
C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
NOTES TO FINANCIAL STATEMENTS
For the period ended March 31, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Magellan Fund (the fund) is registered under the Investment
Company Act of 1940, as amended, as an open-end management investment
company organized as a Massachusetts business trust and is authorized
to issue an unlimited number of shares. Effective the close of
business on September 30, 1997, the fund was closed to new accounts.
The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:
SECURITY VALUATION. Securities for which quotations are readily
available are valued at the last sale price, or if no sale price, at
the closing bid price. Foreign securities are valued based on
quotations from the principal market in which such securities are
normally traded. If trading or events occurring in other markets after
the close of the principal market in which foreign securities are
traded, and before the close of business of the fund, are expected to
materially affect the value of those securities, then they are valued
at their fair value taking this trading or these events into account.
Fair value is determined in good faith under consistently applied
procedures under the general supervision of the Board of Trustees.
Securities (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. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend
date, except certain dividends from foreign securities where the
ex-dividend date may have passed, are recorded as soon as the fund is
informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income is accrued as earned. Investment
income is recorded net of foreign taxes withheld where recovery of
such taxes is uncertain.
DEFERRED TRUSTEE COMPENSATION. Under a Deferred Compensation Plan (the
Plan) non-interested Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of, their annual
compensation. Deferred amounts are treated as though equivalent dollar
amounts had been invested in shares of the fund or are invested in a
cross-section of other Fidelity funds. Deferred amounts remain in the
fund until distributed in accordance with the Plan.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for litigation proceeds, partnerships, non-taxable
dividends and losses deferred due to wash sales. The fund also
utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for
income tax purposes.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments and foreign currency transactions
may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (the SEC), the fund, along with
other affiliated entities of Fidelity Management & Research Company
(FMR), may transfer uninvested cash balances into one or more joint
trading accounts. These balances are invested
2. OPERATING POLICIES - CONTINUED
JOINT TRADING ACCOUNT - CONTINUED
in one or more repurchase agreements for U.S. Treasury or Federal
Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by
the SEC, the fund may invest in the Taxable Central Cash Fund (the
Cash Fund) managed by Fidelity Investments Money Management, Inc., an
affiliate of FMR. The Cash Fund is an open-end money market fund
available only to investment companies and other accounts managed by
FMR and its affiliates. The Cash Fund seeks preservation of capital,
liquidity, and current income by investing in U.S. Treasury securities
and repurchase agreements for these securities. Income distributions
from the Cash Fund are declared daily and paid monthly from net
interest income. Income distributions earned by the fund are recorded
as interest income in the accompanying financial statements.
WHEN-ISSUED SECURITIES. The fund may purchase or sell securities on a
when-issued basis. Payment and delivery may take place a month or more
after the date of the transaction. The price of the underlying
securities is fixed at the time the transaction is negotiated. The
fund may receive compensation for interest forgone in the purchase of
a when-issued security. With respect to purchase commitments, the fund
identifies securities as segregated in its records with a value at
least equal to the amount of the commitment. Losses may arise due to
changes in the market value of the underlying securities, if the
counterparty does not perform under the contract, or if the issuer
does not issue the securities due to political, economic, or other
factors.
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 $4,446,000 or 0.0% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $27,009,574,000 and $29,630,417,000, 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 period. The annual individual fund fee rate is .30%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the same or a lower management fee. The basic fee
is subject to a performance adjustment (up to a maximum of
(plus/minus).20% of the fund's average net assets over the performance
period) based on the fund's investment performance as compared to the
appropriate index over a specified period of time. For the period, the
management fee was equivalent to an annual rate of .43% 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 $9,936,000 on sales of shares of the fund of which
$9,916,000 was retained.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the fund's transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of account. FSC pays
for typesetting, printing and mailing of all shareholder reports,
except proxy statements. For the period, the transfer agent fees were
equivalent to an annual rate of .18% of average net assets.
ACCOUNTING FEES. FSC maintains the fund's accounting records. The fee
is based on the level of average net assets for the month plus
out-of-pocket expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $4,324,000 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 $6,956,000 under this arrangement.
In addition, the fund has entered into arrangements with its custodian
and transfer agent whereby credits realized as a result of uninvested
cash balances were used to reduce a portion of the fund's expenses.
During the period, the fund's custodian and transfer agent fees were
reduced by $10,000 and $4,518,000, respectively, under these
arrangements.
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:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SUMMARY OF TRANSACTIONS WITH
AFFILIATED COMPANIES
AMOUNTS IN THOUSANDS PURCHASE COST SALES COST DIVIDEND INCOME VALUE
AFFILIATE
Aeroquip-Vickers, Inc. $ - $ 1,280 $ 317 $ -
Anadarko Petroleum Corp. - 54,191 1,514 245,753
Assisted Living Concepts, Inc. - 3,358 - -
Black & Decker Corp. 8,727 26,391 2,429 264,991
Canadian Natural Resources - 30,868 - -
Ltd.
Carematrix Corp. - 218 - -
Case Corp. - 64,821 956 105,053
Comdisco, Inc. - 18,679 772 -
Extended Stay America, Inc. 10,345 - - 59,695
Halter Marine Group, Inc. - 1,222 - -
Hanna (M.A.) Co. - 6,522 634 -
Host Marriott Services Corp. - 1,773 - 19,117
Host Marriott Corp. - 17,480 2,631 139,378
IDEX Corp. - 2,015 440 -
Lafarge Corp. 2,632 14,000 2,501 124,856
Landstar System, Inc. - 6,112 - 20,577
Leggett & Platt, Inc. - 4,659 4,114 248,334
Oakwood Homes Corp. - - 149 52,301
Omnicom Group, Inc. - 269 1,063 -
Polo Ralph Lauren Corp. Class 13,160 - - 46,382
A
Prime Hospitality Corp. - 4,950 - -
Pulte Corp. - 20,342 503 58,275
Renaissance Energy Ltd. - - - -
Smith (A.O.) Corp. Class B - 10,173 303 -
Southdown, Inc. 9,348 31,097 777 -
Swift Transportation Co., Inc. - 6,808 - 68,135
Synetic, Inc. - - - 64,680
Trinity Industries, Inc. - 29,852 547 -
UCAR International, Inc. - 18,986 - -
USG Corp. - - - -
TOTALS $ 44,212 $ 376,066 $ 19,650 $ 1,517,527
</TABLE>
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees and the Shareholders of Fidelity Magellan Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity Magellan Fund at March 31, 1999, and the results of its
operations, the changes in its net assets and the financial highlights
for the periods indicated, in conformity with generally accepted
accounting principles. These financial statements and financial
highlights (hereafter referred to as "financial statements") are the
responsibility of the Fidelity Magellan Fund's management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at March 31, 1999 by correspondence with the custodian
and brokers, provide a reasonable basis for the opinion expressed
above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 7, 1999
DISTRIBUTIONS
The Board of Trustees of Fidelity Magellan Fund voted to pay on May
10, 1999, to shareholders of record at the opening of business on May
7, 1999, a distribution of $7.19 per share derived from capital gains
realized from sales of portfolio securities and a dividend of $.23 per
share from net investment income.
A total of 100% of the dividends distributed during the fiscal year
qualifies for the dividends-received deduction for corporate
shareholders.
The fund will notify shareholders in January 2000 of the applicable
percentage for use in preparing 1999 income tax returns.
The fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends.
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
MANAGING YOUR INVESTMENTS
Fidelity offers several ways to conveniently manage your personal
investments via your telephone or PC. You can access your account
information, conduct trades and research your investments 24 hours a
day.
BY PHONE
Fidelity TouchTone Xpress(registered trademark) provides a single
toll-free number to access account balances, positions, quotes and
trading. It's easy to navigate the service, and on your first call,
the system will help you create a personal identification number (PIN)
for security.
(PHONE_GRAPHIC)TOUCHTONE XPRESS
1-800-544-5555
PRESS
1 For mutual fund and brokerage trading.
2 For quotes.*
3 For account balances and holdings.
4 To review orders and mutual
fund activity.
5 To change your PIN.
*0 To speak to a Fidelity representative.
BY PC
Fidelity's Web site on the Internet provides a wide range of
information, including daily financial news, fund performance,
interactive planning tools and news about Fidelity products and
services.
(COMPUTER_GRAPHIC)FIDELITY'S WEB SITE
WWW.FIDELITY.COM
If you are not currently on the Internet, call EarthLink Sprint at
1-800-288-2967, and be sure to ask for registration number SMD004 to
receive a special Fidelity package that includes 30 days of free
Internet access. EarthLink is North America's #1 independent Internet
access provider.
(COMPUTER_GRAPHIC)
FIDELITY ON-LINE XPRESS+(registered trademark)
Fidelity On-line Xpress+ software for Windows combines comprehensive
portfolio management capabilities, securities trading and access to
research and analysis tools . . . all on your desktop. Call Fidelity
at 1-800-544-7272 or visit our Web site for more information on how to
manage your investments via your PC.
* 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.
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
2300 Litton Lane - KH1A
Hebron, KY 41048
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 75039-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
(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 75039-5517
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc., London, England
Fidelity Management & Research
(Far East) Inc., Tokyo, Japan
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Abigail P. Johnson, Vice President
Robert E. Stansky, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
Matthew N. Karstetter, Deputy Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
MAG-ANN-0599 76040
1.702307.101
CUSTODIAN
State Street Bank and Trust Company
Quincy, MA
FIDELITY'S GROWTH FUNDS
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