FIDELITY(REGISTERED TRADEMARK)
MAGELLAN(REGISTERED TRADEMARK)
FUND
ANNUAL REPORT
MARCH 31, 2000
(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 27 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES 31 Notes to the financial
statements.
REPORT OF INDEPENDENT 37 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS 38
PROXY VOTING RESULTS 39
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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 AMOUNT
INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-6666 FOR A
FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(PHOTO_OF_EDWARD_C_JOHNSON_3D)
DEAR SHAREHOLDER:
Concerned about the high valuations of technology stocks, investors
poured money into so-called old economy stocks during March, sparking
a rally in blue chips during which the Dow Jones Industrial Average
gained 499 points in a single day. Treasuries also benefited as a
haven from the technology sector, as the yield of the 10-year note -
which some consider the new bellwether Treasury issue - trended
downward throughout the month.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-6666, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $10,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MARCH 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY MAGELLAN 21.11% 210.04% 505.74%
FIDELITY MAGELLAN (INCL. 17.48% 200.74% 487.56%
3.00% SALES CHARGE)
S&P 500 (registered trademark) 17.94% 227.31% 461.98%
Growth Funds Average 32.16% 213.63% 423.04%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the
Standard & Poor's 500SM Index - a market capitalization-weighted index
of common stocks. To measure how the fund's performance stacked up
against its peers, you can compare it to the growth funds average,
which reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past one year average represents a peer
group of 1,238 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges. Lipper has created new comparison categories that group funds
according to portfolio characteristics and capitalization, as well as
by capitalization only. These averages are listed on page 5 of this
report.*
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MARCH 31, 2000 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
FIDELITY MAGELLAN 21.11% 25.40% 19.74%
FIDELITY MAGELLAN (INCL. 17.48% 24.63% 19.37%
3.00% SALES CHARGE)
S&P 500 17.94% 26.76% 18.84%
Growth Funds Average 32.16% 24.90% 17.43%
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
1990/03/31 9700.00 10000.00
1990/04/30 9455.02 9750.00
1990/05/31 10295.97 10700.63
1990/06/30 10340.72 10627.86
1990/07/31 10223.68 10593.85
1990/08/31 9221.97 9636.17
1990/09/30 8636.78 9166.89
1990/10/31 8530.06 9127.47
1990/11/30 9175.50 9717.10
1990/12/31 9460.24 9988.21
1991/01/31 10121.57 10423.70
1991/02/28 11000.41 11168.99
1991/03/31 11374.05 11439.28
1991/04/30 11416.15 11466.73
1991/05/31 12067.08 11962.10
1991/06/30 11358.00 11414.23
1991/07/31 12063.47 11946.14
1991/08/31 12434.29 12229.26
1991/09/30 12387.26 12025.03
1991/10/31 12553.68 12186.17
1991/11/30 11933.23 11695.06
1991/12/31 13341.63 13032.98
1992/01/31 13347.46 12790.57
1992/02/29 13617.76 12956.84
1992/03/31 13248.29 12704.18
1992/04/30 13444.69 13077.69
1992/05/31 13573.51 13141.77
1992/06/30 13334.43 12945.96
1992/07/31 13708.64 13475.45
1992/08/31 13411.35 13199.20
1992/09/30 13565.19 13354.95
1992/10/31 13660.82 13401.69
1992/11/30 14005.93 13858.69
1992/12/31 14277.49 14029.15
1993/01/31 14653.63 14147.00
1993/02/28 14959.53 14339.40
1993/03/31 15507.88 14641.96
1993/04/30 15659.69 14287.62
1993/05/31 16276.91 14670.53
1993/06/30 16503.90 14713.07
1993/07/31 16685.96 14654.22
1993/08/31 17667.21 15209.62
1993/09/30 17858.73 15092.50
1993/10/31 17870.55 15404.92
1993/11/30 17281.80 15258.57
1993/12/31 17797.97 15443.20
1994/01/31 18501.35 15968.27
1994/02/28 18365.70 15535.53
1994/03/31 17514.11 14858.18
1994/04/30 17689.95 15048.36
1994/05/31 17486.16 15295.16
1994/06/30 16727.49 14920.43
1994/07/31 17287.34 15409.82
1994/08/31 18106.18 16041.62
1994/09/30 17635.28 15648.60
1994/10/31 18231.76 16000.69
1994/11/30 17232.40 15417.95
1994/12/31 17475.70 15646.60
1995/01/31 17297.80 16052.31
1995/02/28 18268.38 16677.87
1995/03/31 18951.19 17170.03
1995/04/30 19832.82 17675.69
1995/05/31 20387.26 18382.19
1995/06/30 21940.15 18809.21
1995/07/31 23624.42 19432.92
1995/08/31 23829.37 19481.70
1995/09/30 24265.54 20303.82
1995/10/31 23645.44 20231.34
1995/11/30 24170.95 21119.50
1995/12/31 23910.84 21526.26
1996/01/31 24255.68 22259.01
1996/02/29 24097.17 22465.35
1996/03/31 24339.11 22681.69
1996/04/30 24494.85 23016.02
1996/05/31 24605.55 23609.60
1996/06/30 24582.55 23699.56
1996/07/31 23438.87 22652.51
1996/08/31 24030.43 23130.25
1996/09/30 24993.35 24432.02
1996/10/31 25584.91 25105.86
1996/11/30 27241.28 27003.61
1996/12/31 26705.23 26468.67
1997/01/31 27877.41 28122.43
1997/02/28 27503.24 28342.91
1997/03/31 26556.22 27178.30
1997/04/30 27741.65 28800.84
1997/05/31 29720.73 30554.24
1997/06/30 30951.30 31923.07
1997/07/31 33548.43 34463.19
1997/08/31 32056.10 32532.56
1997/09/30 33942.75 34314.37
1997/10/31 32786.97 33168.27
1997/11/30 33426.05 34703.63
1997/12/31 33806.56 35299.49
1998/01/31 34172.06 35689.90
1998/02/28 36762.46 38263.86
1998/03/31 38614.78 40223.35
1998/04/30 39058.34 40628.00
1998/05/31 38286.57 39929.60
1998/06/30 39917.80 41551.54
1998/07/31 39619.23 41109.02
1998/08/31 33483.91 35165.48
1998/09/30 35508.38 37418.18
1998/10/31 38242.88 40461.77
1998/11/30 41210.41 42914.16
1998/12/31 45174.40 45386.87
1999/01/31 47544.92 47284.95
1999/02/28 46026.89 45815.34
1999/03/31 48513.31 47648.41
1999/04/30 49672.40 49493.83
1999/05/31 48244.38 48325.28
1999/06/30 51388.60 51007.33
1999/07/31 49658.09 49414.89
1999/08/31 49044.29 49170.28
1999/09/30 48319.61 47822.52
1999/10/31 51222.28 50848.73
1999/11/30 52271.67 51882.49
1999/12/31 56037.17 54938.37
2000/01/31 53342.56 52178.26
2000/02/29 53875.74 51190.53
2000/03/31 58756.39 56198.50
IMATRL PRASUN SHR__CHT 20000331 20000424 113439 R00000000000123
$10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was
invested in Fidelity Magellan Fund on March 31, 1990, and the current
3.00% sales charge was paid. As the chart shows, by March 31, 2000,
the value of the investment would have grown to $58,756 - a 487.56%
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 $56,198 - a 461.98% increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
long-term growth and
short-term volatility. In turn, the
share price and return of a
fund that invests in stocks will
vary. That means if you sell
your shares during a market
downturn, you might lose
money. But if you can ride out
the market's ups and downs,
you may have a gain.
* THE LIPPER LARGE CAP CORE FUNDS AVERAGE REFLECTS THE PERFORMANCE
(EXCLUDING SALES CHARGES) OF MUTUAL FUNDS WITH SIMILAR PORTFOLIO
CHARACTERISTICS AND CAPITALIZATION. THE LIPPER LARGE CAP SUPERGROUP
AVERAGE REFLECTS THE PERFORMANCE (EXCLUDING SALES CHARGES) OF MUTUAL
FUNDS WITH SIMILAR CAPITALIZATION. AS OF MARCH 31, 2000, THE ONE YEAR,
FIVE YEAR, AND 10 YEAR CUMULATIVE AND AVERAGE ANNUAL TOTAL RETURNS FOR
THE LARGE CAP CORE FUNDS AVERAGE ARE 21.70%, 199.85%, 393.33%, AND
21.70%, 24.42%, 17.13%, RESPECTIVELY; AND THE ONE YEAR, FIVE YEAR AND
10 YEAR CUMULATIVE AND AVERAGE ANNUAL TOTAL RETURNS FOR THE LARGE CAP
SUPERGROUP AVERAGE ARE 24.31%, 214.69%, 427.31%, AND 24.31%, 25.21%,
17.70%, RESPECTIVELY.
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Despite a number of milestones
in the U.S. stock market during
the 12-month period ending March
31, 2000, the overriding theme was
volatility. The period's
top-performing equity index -
the tech-heavy NASDAQ Index -
returned 86.25% as investors
flocked to stocks of companies
involved in the Internet, wireless
communications and
biotechnology. The profitable ride in
many new economy stocks became a
rocky one toward the end of the
period, however, as the
NASDAQ topped the 5000 mark in
March before shedding much of
2000's year-to-date gains by the
month's end. Conversely, the
blue-chip's benchmark - the Dow
Jones Industrial Average -
performed modestly for most of the
period, but surged higher late in the
first quarter amidst a flight to quality,
ending with a 13.29% return. The
Dow gyrated in a range of about
2000 points toward the end of the
period after passing the 11,000 level
for the first time in November.
Meanwhile, the Standard & Poor's
500SM Index - an index of 500
commonly held large-cap stocks -
returned 17.94%. The period also
was characterized by the Federal
Reserve Board's concern that the
growth of the U. S. economy was
excessive and might spark inflation.
As a result, the Fed raised key
short-term interest rates on five
occasions. Following the Fed's latest
rate hike in March, investors began
fleeing new economy stocks for the
safety of old economy stocks.
(photograph of Robert Stansky)
An interview with Robert Stansky, Portfolio Manager of Fidelity
Magellan Fund
Q. BOB, HOW DID THE FUND PERFORM?
A. The fund had a strong past 12 months relative to its benchmark
index, but somewhat less so relative to its peers. Magellan had a
total return of 21.11% during the 12 months that ended March 31, 2000.
That topped the total return of the Standard & Poor's 500 Index, which
was 17.94% during the same period. However, the fund trailed the
average return of its growth funds peer group, as tracked by Lipper
Inc., which was 32.16%.
Q. WHY DID THE FUND BEAT ITS BENCHMARK, YET TRAIL ITS PEER GROUP
AVERAGE?
A. I'm sure many shareholders are aware of the fact that, over the
past six months, we experienced an unprecedented run-up in the shares
of technology stocks. At the end of September, I mentioned that I was
concerned about the high valuations - or stock prices relative to
earnings - of many of these stocks. As a result, the fund maintained a
weighting in technology that was pretty close to that of the S&P 500
during the period as valuations continued to rise. Other growth funds
that were more aggressive in the tech sector, and willing to take on
more risk, tended to post outsized returns during this unusual period.
Magellan Fund did top the S&P 500, however, by virtue of strong stock
selection in technology and other sectors.
Q. LET'S START WITH TECHNOLOGY. WHAT FUELED THE SPECTACULAR RISE IN
STOCK PRICES?
A. Several factors were at play in this sector, which comprises
several industries. The first was the huge, ongoing build-out of
communications systems worldwide - wireless, fiber optics and
broadband, for example - and the Internet. We've seen a real shift in
focus within the technology sector from personal computing to personal
communications. We've also seen an incredible wave of capital spending
by new and old companies, funded both by venture capital and money
raised in the equity markets. I mentioned six months ago that I had
some concerns about Y2K. However, once Y2K came and went with few
disruptions, expectations quickly rose that companies would resume the
capital spending that had been put on hold until after New Year's. A
continued strong U.S. economy and some improving international
economies lent support. And the continued strength of technology
stocks fueled investors to plow increasing amounts of cash into the
sector, which helped keep the momentum going.
Q. HOW DID YOU PLAY THE SECTOR?
A. Many of the top contributors to the fund's performance in terms of
technology stocks were names that shareholders likely would recognize
from the past. What they all have in common is they provided solutions
in one form or another for companies participating in this
communications and Internet build-out. They include companies such as
Texas Instruments, which not only produces semiconductors, but also
digital signal processors that are used in cellular phones; Cisco
Systems, which manufactures products that link computer networks, but
also has quickly moved into telecommunications networking; Oracle,
which develops database software that supports personal computers and
other appliances that access programs from the Web; and Intel, the
leading microprocessor manufacturer, which also is pushing into
networking services and communications infrastructure products.
Q. DID THE FUND INVEST IN SOME OF THE MORE SPECULATIVE TECHNOLOGY
COMPANIES THAT PRODUCED HUGE GAINS?
A. Yes. Although they made up a relatively small portion of the fund,
the rapid stock gains of a number of newer companies had a positive
impact on the fund's performance. Because some of these companies are
in the early stages of profitability, I focused on those companies
with products that I believed had significant growth prospects. For
example, Juniper Networks sells a very fast router. Redback Networks
helps companies deploy high-speed broadband access to the Internet and
corporate networks. And Sycamore Networks develops software-based
optical networking products. These types of companies were at the
heart of the communications expansion, and among the hottest stocks in
the market over the past 12 months. Some of these investments were
similar to ones I made in newer companies in late 1998, when many
Internet-related stocks were rising. As I did then, I recently had to
rely somewhat on a sense of market psychology when choosing these
companies as they're only starting to show quarterly earnings. I had
to evaluate how the market might reward those with the brightest
potential long into the future.
Q. NEAR THE END OF THE PERIOD, THE TECH SECTOR HIT A ROUGH PATCH AND
GAVE BACK SOME OF ITS GAINS. WHAT HAPPENED?
A. Very simply, valuations got too high and investors took profits.
You have to bear in mind that, as the prices of these stocks were
rising, there was not a commensurate rise in the companies' near-term
business prospects. So, as we say, the stocks got ahead of themselves.
Even considering the recent pullback in tech stocks, I'm still
concerned about their high valuations. While I do believe that this
sector offers the greatest potential for growth in the marketplace
over the next three to five years, we have to expect volatility and
further downdrafts along the way. Of course, that can provide the fund
buying opportunities in those companies that I believe are best
positioned for strong earnings growth.
Q. YOU MENTIONED THAT STOCK SELECTION WITHIN OTHER SECTORS HELPED THE
FUND'S PERFORMANCE. WHERE WERE THE WINNERS AND LOSERS?
A. Because no other sector of the market performed anywhere near as
well as technology over the past 12 months, you had to be selective.
Most other sectors were a mixed bag. Underweighting consumer
nondurable stocks relative to the S&P 500 helped the fund. Even so,
Procter & Gamble, for example, fell significantly after reporting
disappointing earnings amid a slow rate of improvement in worldwide
demand for consumer products. Several stocks in the retail sector
worked quite well, boosted by a continued strong U.S. economy. They
included Home Depot, which also capitalized on diminished competition
in its marketplace. In the media and leisure sector, Time Warner
benefited from its announced merger with America Online. In finance,
U.S. regional banks were hurt by rising interest rates, but those
firms with direct exposure to the rising equity market through
activities such as investment banking and underwriting did better.
Citigroup is an example of the latter and made a significant
contribution to the fund's returns.
Q. BOB, WHAT'S YOUR OUTLOOK THROUGH THE REST OF THE YEAR?
A. I remain concerned about stock valuations, and not just in
technology. For example, many cyclical stocks - which tend to rise and
fall with economic cycles - were rather expensive relative to
historical measures at the end of the period and some financial
services companies were not as cheap as they had been. Also, Y2K came
and went without any ill effects and companies may build up
inventories once again, but I believe strong growth in the U.S.
economy is long in the tooth. At some point, that growth will slow,
which could slow the communications and Internet expansion. I'll
certainly look for buying opportunities as one sector or another
languishes; that's proven successful in the past. As I like to say,
I'll take what the market gives me. As always, I'll try to find
investments that offer the dual qualities of strong earnings prospects
and the opportunity for higher valuations. After all, as we've seen
with the recent drop in technology stocks, some of the old rules of
investing still apply.
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
FUND NUMBER: 021
TRADING SYMBOL: FMAGX
START DATE: May 2, 1963
SIZE: as of March 31, 2000,
more than $109 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-
1985; joined Fidelity in
1983
BOB STANSKY ON INVESTING IN
THE NEW ECONOMY:
"Over the past 12 months, we've
experienced what I would
consider to be a
once-in-a-generation event involving
the so-called new economy stocks.
We saw a phase of euphoria for
raising capital through the stock
market, and companies have been
coming public much earlier in their
life cycles than in recent years.
Importantly, when valuing some of
these companies, investors have
`allowed' them significantly
expanded time horizons between
when they go public and how soon
they'll become profitable. To my
recollection, never before have the
stocks of so many companies that
aren't making money done so well.
"While I do believe there is a lot of
potential in investing in the
build-out of communications
systems and infrastructure and
the Internet over the next several
years, I would expect the market
to approach these opportunities
more rationally going forward. In
fact, we already saw some signs of
a less-forgiving investing
environment around high-tech
companies near the end of the
period. While it would be fun to
step forward 20 years and see how
this all shakes out, for now I have
to keep one eye on the rapid
changes occurring in the
marketplace, and another eye on
how these changes line up with
historical valuations."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF MARCH
31, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
General Electric Co. 4.7 4.7
Microsoft Corp. 4.1 4.6
Cisco Systems, Inc. 3.7 2.0
Home Depot, Inc. 2.9 2.6
Intel Corp. 2.8 1.5
Texas Instruments, Inc. 2.5 1.5
Citigroup, Inc. 2.4 2.1
Exxon Mobil Corp. 2.1 2.0
Time Warner, Inc. 2.0 1.3
Tyco International Ltd. 1.9 1.9
29.1 24.2
TOP FIVE MARKET SECTORS AS OF
MARCH 31, 2000
% OF FUND'S NET ASSETS % OF FUND'S NET ASSETS 6
MONTHS AGO
Technology 35.2 22.1
Finance 11.8 12.1
Retail & Wholesale 9.6 9.4
Health 7.9 9.2
Media & Leisure 7.6 6.5
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ASSET ALLOCATION (% OF FUND'S
NET ASSETS)
AS OF MARCH 31, 2000 * AS OF SEPTEMBER 30, 1999**
Stocks 98.4% Stocks 92.4%
Short-Term Investments and Short-Term Investments and
Net Other Assets 1.6% Net Other Assets 7.6%
* FOREIGN INVESTMENTS 5.4% ** FOREIGN INVESTMENTS 4.1%
Row: 1, Col: 1, Value: 98.40000000000001 Row: 1, Col: 1, Value: 92.40000000000001
Row: 1, Col: 2, Value: 0.0 Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 0.0 Row: 1, Col: 3, Value: 0.0
Row: 1, Col: 4, Value: 0.0 Row: 1, Col: 4, Value: 0.0
Row: 1, Col: 5, Value: 0.0 Row: 1, Col: 5, Value: 0.0
Row: 1, Col: 6, Value: 0.0 Row: 1, Col: 6, Value: 0.0
Row: 1, Col: 7, Value: 0.0 Row: 1, Col: 7, Value: 0.0
Row: 1, Col: 8, Value: 1.6 Row: 1, Col: 8, Value: 7.6
</TABLE>
INVESTMENTS MARCH 31, 2000
Showing Percentage of Net Assets
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 98.4%
SHARES VALUE (NOTE 1) (000S)
AEROSPACE & DEFENSE - 1.1%
AEROSPACE & DEFENSE - 1.0%
Boeing Co. 2,908,600 $ 110,345
Honeywell International, Inc. 9,576,937 504,585
Textron, Inc. 1,911,400 116,356
United Technologies Corp. 4,631,600 292,659
1,023,945
DEFENSE ELECTRONICS - 0.0%
Raytheon Co. Class B 777,080 13,793
SHIP BUILDING & REPAIR - 0.1%
General Dynamics Corp. 2,041,800 101,580
TOTAL AEROSPACE & DEFENSE 1,139,318
BASIC INDUSTRIES - 1.0%
CHEMICALS & PLASTICS - 0.5%
E.I. du Pont de Nemours and 4,110,575 217,347
Co.
Monsanto Co. 4,682,800 241,164
Praxair, Inc. 568,900 23,680
Trivest 1992 Special Fund Ltd. 26.6 (e) 2,516
484,707
IRON & STEEL - 0.1%
Nucor Corp. 2,492,400 124,620
METALS & MINING - 0.2%
Alcoa, Inc. 3,140,000 220,585
PACKAGING & CONTAINERS - 0.2%
Corning, Inc. 1,100,000 213,400
Owens-Illinois, Inc. (a) 742,700 12,533
225,933
PAPER & FOREST PRODUCTS - 0.0%
Kimberly-Clark Corp. 200,000 11,200
Louisiana-Pacific Corp. 1,932,600 26,815
38,015
TOTAL BASIC INDUSTRIES 1,093,860
CONSTRUCTION & REAL ESTATE -
0.6%
BUILDING MATERIALS - 0.4%
Lafarge Corp. (c) 4,516,810 107,274
Masco Corp. 8,565,200 175,587
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
CONSTRUCTION & REAL ESTATE -
CONTINUED
BUILDING MATERIALS - CONTINUED
Southdown, Inc. 500,000 $ 29,500
USG Corp. 1,500,000 62,906
375,267
CONSTRUCTION - 0.0%
Centex Corp. 600,000 14,288
Pulte Corp. 306,200 6,392
20,680
REAL ESTATE INVESTMENT TRUSTS
- - 0.2%
Equity Office Properties Trust 1,986,400 49,908
Equity Residential Properties 1,271,500 51,098
Trust (SBI)
Host Marriott Corp. (c) 11,500,000 102,063
Public Storage, Inc. 1,136,300 23,862
226,931
TOTAL CONSTRUCTION & REAL 622,878
ESTATE
DURABLES - 1.8%
AUTOS, TIRES, & ACCESSORIES -
1.1%
AutoNation, Inc. (a) 11,567,927 91,820
AutoZone, Inc. (a) 2,435,800 67,593
Danaher Corp. 2,356,349 120,174
Ford Motor Co. 12,073,100 554,608
General Motors Corp. 4,847,600 401,442
1,235,637
CONSUMER ELECTRONICS - 0.1%
Black & Decker Corp. 3,958,500 148,691
HOME FURNISHINGS - 0.3%
Leggett & Platt, Inc. (c) 12,516,700 269,109
TEXTILES & APPAREL - 0.3%
Liz Claiborne, Inc. 2,547,800 116,721
NIKE, Inc. Class B 3,398,500 134,666
Polo Ralph Lauren Corp. Class 2,333,700 43,611
A (a)(c)
Shaw Industries, Inc. 100,000 1,519
Warnaco Group, Inc. Class A 300,000 3,544
300,061
TOTAL DURABLES 1,953,498
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
ENERGY - 6.1%
ENERGY SERVICES - 0.9%
Baker Hughes, Inc. 3,000,000 $ 90,750
Halliburton Co. 7,099,600 291,084
Schlumberger Ltd. 7,296,300 558,167
Transocean Sedco Forex, Inc. 1,412,563 72,482
1,012,483
OIL & GAS - 5.2%
Anadarko Petroleum Corp. (c) 6,410,000 247,987
Apache Corp. 2,959,715 147,246
BP Amoco PLC 24,753,870 218,917
BP Amoco PLC sponsored ADR 6,368,842 337,947
Burlington Resources, Inc. 2,952,525 109,243
Chevron Corp. 5,962,100 551,122
Conoco, Inc. Class B 8,092,088 207,360
Cooper Cameron Corp. (a) 1,671,500 111,782
Exxon Mobil Corp. 28,751,268 2,237,208
Occidental Petroleum Corp. 4,321,400 89,669
Royal Dutch Petroleum Co. (NY 7,932,700 456,626
Shares)
Shell Transport & Trading Co. 13,327,100 108,977
PLC (Reg.)
Sunoco, Inc. 100,000 2,738
Texaco, Inc. 6,352,000 340,626
The Coastal Corp. 4,384,000 201,664
Total Fina SA Class B 1,896,611 279,276
USX - Marathon Group 550,000 14,334
5,662,722
TOTAL ENERGY 6,675,205
FINANCE - 11.8%
BANKS - 3.5%
Bank of America Corp. 13,902,754 729,026
Bank of New York Co., Inc. 1,454,400 60,449
Capital One Financial Corp. 400,000 19,175
Chase Manhattan Corp. 15,186,200 1,324,047
Comerica, Inc. 2,321,000 97,192
FleetBoston Financial Corp. 10,210,083 372,668
Mellon Financial Corp. 800,000 23,600
Synovus Finanical Corp. 1,709,775 32,272
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FINANCE - CONTINUED
BANKS - CONTINUED
U.S. Bancorp 6,611,600 $ 144,629
Wells Fargo & Co. 24,255,000 992,939
3,795,997
CREDIT & OTHER FINANCE - 3.5%
American Express Co. 2,951,500 439,589
Associates First Capital 14,830,774 317,935
Corp. Class A
Citigroup, Inc. 44,134,833 2,617,747
Concord EFS, Inc. (a) 1,500,000 34,406
Household International, Inc. 3,820,395 142,548
MBNA Corp. 1,800,000 45,900
Providian Financial Corp. 2,800,000 242,550
3,840,675
FEDERAL SPONSORED CREDIT - 1.4%
Fannie Mae 16,281,100 918,865
Freddie Mac 12,911,600 570,531
SLM Holding Corp. 481,950 16,055
1,505,451
INSURANCE - 2.2%
AFLAC, Inc. 4,454,800 202,972
American General Corp. 200,000 11,225
American International Group, 14,315,980 1,567,600
Inc.
Berkshire Hathaway, Inc. 757 43,300
Class A (a)
Hartford Financial Services 800,000 42,200
Group, Inc.
John Hancock Financial 5,000,000 90,313
Services, Inc.
Marsh & McLennan Companies, 2,448,200 270,067
Inc.
The Chubb Corp. 1,000,000 67,563
UnumProvident Corp. 3,333,400 56,668
2,351,908
SAVINGS & LOANS - 0.0%
Charter One Financial, Inc. 2,719,962 57,119
SECURITIES INDUSTRY - 1.2%
Charles Schwab Corp. 2,350,000 133,509
Daiwa Securities Co. Ltd. 3,571,000 67,059
Goldman Sachs Group, Inc. 450,000 47,306
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FINANCE - CONTINUED
SECURITIES INDUSTRY - CONTINUED
Morgan Stanley Dean Witter & 11,366,270 $ 927,061
Co.
Nomura Securities Co. Ltd. 2,582,000 84,162
1,259,097
TOTAL FINANCE 12,810,247
HEALTH - 7.9%
DRUGS & PHARMACEUTICALS - 5.9%
American Home Products Corp. 13,495,200 723,680
Biogen, Inc. (a) 610,000 42,624
Bristol-Myers Squibb Co. 15,266,900 881,663
Elan Corp. PLC sponsored ADR 3,802,000 180,595
(a)
Eli Lilly & Co. 17,488,500 1,101,776
Genentech, Inc. 2,306,875 350,645
Medarex, Inc. (a) 109,300 5,492
Merck & Co., Inc. 17,268,700 1,072,818
PE Corp. - Celera Genomics 229,600 21,023
Group (a)
Pfizer, Inc. 5,309,200 194,118
Schering-Plough Corp. 20,587,700 756,598
Symyx Technologies, Inc. 38,500 1,660
Warner-Lambert Co. 11,834,100 1,153,825
XOMA Ltd. (a)(d) 3,030 19
6,486,536
MEDICAL EQUIPMENT & SUPPLIES
- - 1.6%
Abbott Laboratories 12,896,500 453,796
Baxter International, Inc. 300,000 18,806
Becton, Dickinson & Co. 1,419,500 37,351
Boston Scientific Corp. (a) 8,062,000 171,821
Cardinal Health, Inc. 8,297,114 380,630
Guidant Corp. (a) 800,000 47,050
Johnson & Johnson 6,100,100 427,388
Medtronic, Inc. 4,418,000 227,251
Selfcare, Inc. (a) 721,600 4,916
1,769,009
MEDICAL FACILITIES MANAGEMENT
- - 0.4%
Express Scripts, Inc. Class A 1,000,000 42,000
(a)
HEALTHSOUTH Corp. (a) 12,352,200 68,709
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT
- - CONTINUED
United HealthCare Corp. 3,394,100 $ 202,373
Wellpoint Health Networks, 1,200,000 83,850
Inc. (a)
396,932
TOTAL HEALTH 8,652,477
INDUSTRIAL MACHINERY &
EQUIPMENT - 5.1%
ELECTRICAL EQUIPMENT - 4.8%
Emerson Electric Co. 2,732,400 144,476
General Electric Co. 32,784,800 5,087,775
SLI, Inc. 519,000 8,823
Telaxis Communications Corp. 10,300 619
5,241,693
INDUSTRIAL MACHINERY &
EQUIPMENT - 0.3%
Caterpillar, Inc. 550,000 21,691
Deere & Co. 1,160,000 44,080
Illinois Tool Works, Inc. 3,760,000 207,740
Ingersoll-Rand Co. 1,352,850 59,864
333,375
POLLUTION CONTROL - 0.0%
Republic Services, Inc. Class 3,200,000 35,000
A (a)
TOTAL INDUSTRIAL MACHINERY & 5,610,068
EQUIPMENT
MEDIA & LEISURE - 7.6%
BROADCASTING - 4.7%
CBS Corp. (a) 15,454,476 875,110
Charter Communications, Inc. 1,700,000 24,358
Clear Channel Communications, 8,500,000 587,031
Inc. (a)
Comcast Corp. Class A 2,750,000 119,281
(special)
Cox Communications, Inc. 2,589,400 125,586
Class A (a)
EchoStar Communications Corp. 2,400,000 189,600
Class A (a)
Grupo Televisa SA de CV 400,000 27,200
sponsored ADR (a)
Hispanic Broadcasting Corp. 663,800 75,175
(a)
Infinity Broadcasting Corp. 11,930,796 386,260
Class A (a)
Mediacom Communications Corp. 188,000 2,620
MediaOne Group, Inc. (a) 3,950,000 319,950
Time Warner, Inc. 22,317,903 2,231,790
UnitedGlobalCom, Inc. (a) 1,100,000 82,569
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
MEDIA & LEISURE - CONTINUED
BROADCASTING - CONTINUED
Univision Communications, 595,000 $ 67,235
Inc. Class A (a)
USA Networks, Inc. (a) 1,389,600 31,353
Wireless Facilities, Inc. 43,700 4,599
5,149,717
ENTERTAINMENT - 1.7%
Alliance Gaming Corp. (a)(f) 5,072 12
Fox Entertainment Group, Inc. 1,988,000 59,516
Class A (a)
News Corp. Ltd. sponsored ADR 3,700,000 208,125
Park Place Entertainment 3,729,200 43,119
Corp. (a)
SFX Entertainment, Inc. Class 961,500 39,241
A (a)
Viacom, Inc. Class B 18,408,800 971,064
(non-vtg.) (a)
Walt Disney Co. 13,357,000 552,646
1,873,723
LODGING & GAMING - 0.1%
Extended Stay America, Inc. 5,859,603 43,947
(a)(c)
Marriott International, Inc. 855,000 26,933
Class A
Starwood Hotels & Resorts 2,199,327 57,732
Worldwide, Inc. unit
128,612
PUBLISHING - 0.5%
Gannett Co., Inc. 3,210,400 225,932
Harcourt General, Inc. 1,248,900 46,522
McGraw-Hill Companies, Inc. 1,926,000 87,633
Times Mirror Co. Class A 597,300 55,512
Tribune Co. 1,346,200 49,220
464,819
RESTAURANTS - 0.6%
McDonald's Corp. 15,694,800 589,536
Tricon Global Restaurants, 1,200,000 37,275
Inc. (a)
626,811
TOTAL MEDIA & LEISURE 8,243,682
NONDURABLES - 2.3%
BEVERAGES - 0.9%
Anheuser-Busch Companies, 1,591,600 99,077
Inc.
Coca-Cola Enterprises, Inc. 400,000 8,625
PepsiCo, Inc. 13,424,300 463,977
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
NONDURABLES - CONTINUED
BEVERAGES - CONTINUED
Seagram Co. Ltd. 3,800,000 $ 225,774
The Coca-Cola Co. 4,166,800 195,579
993,032
FOODS - 0.1%
Bestfoods 1,000,000 46,813
General Mills, Inc. 400,000 14,475
61,288
HOUSEHOLD PRODUCTS - 0.8%
Avon Products, Inc. 2,546,000 73,993
Clorox Co. 2,405,696 78,185
Estee Lauder Companies, Inc. 35,500 1,777
Gillette Co. 8,685,800 327,346
Procter & Gamble Co. 6,847,300 385,161
866,462
TOBACCO - 0.5%
Philip Morris Companies, Inc. 24,663,400 521,014
TOTAL NONDURABLES 2,441,796
RETAIL & WHOLESALE - 9.6%
APPAREL STORES - 1.2%
Abercrombie & Fitch Co. Class 600,000 9,600
A (a)
AnnTaylor Stores Corp. (a) 200,000 4,600
Gap, Inc. 15,429,300 768,572
The Limited, Inc. 9,582,900 403,680
TJX Companies, Inc. 6,096,800 135,273
Too, Inc. (a) 1,000,000 31,563
1,353,288
DRUG STORES - 0.3%
CVS Corp. 9,931,786 373,063
Walgreen Co. 200,000 5,150
378,213
GENERAL MERCHANDISE STORES -
2.8%
Consolidated Stores Corp. (a) 2,191,168 24,925
Costco Wholesale Corp. (a) 3,211,000 168,778
Federated Department Stores, 3,415,700 142,605
Inc. (a)
Kohls Corp. (a) 300,000 30,750
Neiman Marcus Group, Inc. (a) 668,700 18,598
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
RETAIL & WHOLESALE - CONTINUED
GENERAL MERCHANDISE STORES -
CONTINUED
Target Corp. 14,094,300 $ 1,053,549
Wal-Mart Stores, Inc. 28,345,000 1,573,148
3,012,353
GROCERY STORES - 0.6%
Kroger Co. (a) 3,810,000 66,913
Safeway, Inc. (a) 11,754,400 531,887
598,800
RETAIL & WHOLESALE,
MISCELLANEOUS - 4.7%
Bed Bath & Beyond, Inc. (a) 600,000 23,625
Best Buy Co., Inc. (a) 2,800,000 240,800
Circuit City Stores, Inc. - 1,940,000 118,098
Circuit City Group
Home Depot, Inc. 49,507,275 3,193,219
Intimate Brands, Inc. Class A 1,444,815 59,237
Lowe's Companies, Inc. 14,547,000 849,181
Office Depot, Inc. (a) 12,066,600 139,520
Staples, Inc. (a) 21,800,000 436,000
Tandy Corp. 895,200 45,431
Williams-Sonoma, Inc. (a) 762,500 23,638
5,128,749
TOTAL RETAIL & WHOLESALE 10,471,403
SERVICES - 1.2%
ADVERTISING - 0.8%
DoubleClick, Inc. (a) 1,765,000 165,248
Internet Capital Group, Inc. 285,000 25,739
Omnicom Group, Inc. 7,451,576 696,257
ValueClick, Inc. 37,700 789
888,033
SERVICES - 0.4%
Cendant Corp. (a) 15,787,000 292,060
Expedia, Inc. Class A 152,300 3,236
FreeMarkets, Inc. 109,200 13,213
Gartner Group, Inc. Class B 319,400 4,252
(a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
SERVICES - CONTINUED
SERVICES - CONTINUED
H&R Block, Inc. 1,026,900 $ 45,954
Manpower, Inc. 2,905,900 103,159
461,874
TOTAL SERVICES 1,349,907
TECHNOLOGY - 35.2%
COMMUNICATIONS EQUIPMENT - 7.6%
3Com Corp. (a) 500,000 27,813
ADC Telecommunications, Inc. 1,000,000 53,875
(a)
Avanex Corp. 37,700 5,721
Cisco Systems, Inc. (a) 52,800,000 4,082,100
Comverse Technology, Inc. (a) 1,325,000 250,425
Digital Island, Inc. 496,000 30,225
Lucent Technologies, Inc. 23,220,198 1,410,627
Next Level Communications, 52,300 5,688
Inc.
Nokia AB sponsored ADR 5,322,800 1,156,378
Nortel Networks Corp. 5,100,000 640,865
Sycamore Networks, Inc. 2,439,400 314,683
Telefonaktiebolaget LM 2,100,000 197,006
Ericsson sponsored ADR
Tellabs, Inc. (a) 1,400,000 88,178
8,263,584
COMPUTER SERVICES & SOFTWARE
- - 10.1%
Adobe Systems, Inc. 200,000 22,263
Aether Systems, Inc. 329,900 59,877
Akamai Technologies, Inc. 571,900 91,969
America Online, Inc. (a) 15,860,000 1,066,585
Ariba, Inc. 400,000 83,850
At Home Corp. Series A (a) 3,890,422 128,141
Automatic Data Processing, 2,400,000 115,800
Inc.
BEA Systems, Inc. (a) 1,500,000 110,063
BMC Software, Inc. (a) 2,817,700 139,124
BroadVision, Inc. (a) 403,800 18,121
Ceridian Corp. (a) 2,601,400 49,914
Citrix Systems, Inc. (a) 720,280 47,719
CMGI, Inc. (a) 400,000 45,325
Computer Associates 3,152,800 186,606
International, Inc.
Computer Sciences Corp. (a) 653,200 51,684
Compuware Corp. (a) 4,150,000 87,409
Covad Communications Group, 1,519,800 110,186
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
Digex, Inc. Class A 906,900 $ 100,609
EarthLink, Inc. (a) 161,500 3,139
Electronic Data Systems Corp. 950,000 60,978
Equant NV (Reg.) (a) 1,000,000 85,063
Equifax, Inc. 870,170 21,972
Exodus Communications, Inc. 400,000 56,200
(a)
First Data Corp. 4,674,000 206,825
Galileo International, Inc. 700,000 16,844
Healtheon/Web Maryland Corp. 1,000,000 23,000
(a)
Infonet Services Corp. Class B 445,600 10,082
InfoSpace.com, Inc. (a) 100,000 14,544
InterVU, Inc. (a) 300,000 27,000
Intuit, Inc. (a) 1,000,000 54,375
Keane, Inc. (a) 600,000 15,150
Lycos, Inc. (a)(c) 5,698,400 400,313
Metasolv Software, Inc. 79,200 4,678
Microsoft Corp. (a) 41,845,400 4,446,074
NBC Internet, Inc. Class A (a) 780,600 33,615
New Era of Networks, Inc. (a) 200,000 7,850
Oracle Corp. (a) 16,800,000 1,311,450
Parametric Technology Corp. 3,705,000 78,037
(a)
Phone.com, Inc. 1,100,000 179,438
Priceline.com, Inc. 1,038,000 83,040
Redback Networks, Inc. 1,751,800 525,431
Sabre Holdings Corp. Class A 995,886 36,786
Siebel Systems, Inc. (a) 1,400,000 167,213
Software.com, Inc. 210,000 27,064
TIBCO Software, Inc. 136,800 11,149
Usinternetworking, Inc. 97,700 3,786
VERITAS Software Corp. (a) 1,175,000 153,925
Viant Corp. 100,000 3,350
Yahoo!, Inc. (a) 2,800,000 479,850
11,063,466
COMPUTERS & OFFICE EQUIPMENT
- - 6.1%
Adaptec, Inc. (a) 200,000 7,725
Alteon Websystems, Inc. 300,000 24,600
Ampex Corp. Class A (a) 16,505 52
Ancor Communications, Inc. (a) 200,000 8,225
Apple Computer, Inc. (a) 500,000 67,906
ArrowPoint Communication, 37,600 4,455
Inc.
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT
- - CONTINUED
Brocade Communications 700,000 $ 125,519
Systems, Inc.
Compaq Computer Corp. 9,700,000 258,263
Dell Computer Corp. (a) 10,176,800 548,911
EMC Corp. (a) 11,120,964 1,390,121
Emulex Corp. (a) 100,000 10,913
Hewlett-Packard Co. 4,262,000 564,981
International Business 11,706,800 1,381,402
Machines Corp.
Juniper Networks, Inc. 3,104,500 818,230
Lexmark International Group, 200,000 21,150
Inc. Class A (a)
Network Appliance, Inc. (a) 340,000 28,135
Oak Technology, Inc. (a) 350,000 6,738
Pitney Bowes, Inc. 5,208,400 232,750
Sun Microsystems, Inc. (a) 11,900,000 1,115,067
Tech Data Corp. (a) 788,800 25,932
6,641,075
ELECTRONIC INSTRUMENTS - 0.3%
Applied Materials, Inc. (a) 1,300,000 122,525
DBT Online, Inc. (a) 1,000,000 18,563
Kulicke & Soffa Industries, 200,000 12,813
Inc. (a)
Thermo Electron Corp. (a) 2,871,500 58,507
Waters Corp. (a) 1,208,100 115,072
327,480
ELECTRONICS - 11.1%
Altera Corp. (a) 200,000 17,850
Analog Devices, Inc. (a) 2,707,732 218,142
Broadcom Corp. Class A (a) 700,000 170,013
Conexant Systems, Inc. (a) 500,000 35,500
Flextronics International 2,000,000 140,875
Ltd. (a)
Inktomi Corp. (a) 3,521,400 686,673
Intel Corp. 22,797,600 3,007,858
Intersil Holding Corp. 637,500 32,951
JDS Uniphase Corp. (a) 3,720,000 448,493
Linear Technology Corp. 7,053,200 387,926
LSI Logic Corp. (a) 600,000 43,575
Maxim Integrated Products, 3,178,400 225,865
Inc. (a)
Micron Technology, Inc. (a) 1,817,000 228,942
Motorola, Inc. 8,216,200 1,169,781
PMC-Sierra, Inc. (a) 1,400,000 285,163
QLogic Corp. (a) 200,000 27,100
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Solectron Corp. (a) 2,460,400 $ 98,570
Texas Instruments, Inc. 17,117,600 2,738,816
Tyco International Ltd. 42,427,412 2,116,067
Vitesse Semiconductor Corp. 400,000 38,500
(a)
12,118,660
TOTAL TECHNOLOGY 38,414,265
TRANSPORTATION - 0.1%
AIR TRANSPORTATION - 0.0%
AMR Corp. 1,378,100 43,927
Southwest Airlines Co. 200,000 4,163
48,090
TRUCKING & FREIGHT - 0.1%
CNF Transportation, Inc. 592,000 16,428
Swift Transportation Co., 3,319,875 68,057
Inc. (a)(c)
84,485
TOTAL TRANSPORTATION 132,575
UTILITIES - 7.0%
CELLULAR - 1.4%
ALLTEL Corp. 264,300 16,667
China Telecom (Hong Kong) 350,000 62,038
Ltd. sponsored ADR (a)
Nextel Communications, Inc. 2,550,000 378,038
Class A (a)
Nextel Partners, Inc. 146,500 4,249
QUALCOMM, Inc. (a) 1,265,700 188,985
Sprint Corp. - PCS Group 3,600,000 235,125
Series 1 (a)
TeleCorp PCS, Inc. 19,400 1,004
Vodafone AirTouch PLC 34,388,154 191,069
Vodafone AirTouch PLC 7,464,500 414,746
sponsored ADR
VoiceStream Wireless Corp. (a) 446,987 57,578
1,549,499
ELECTRIC UTILITY - 0.0%
Montana Power Co. 200,000 12,800
GAS - 0.4%
Enron Corp. 5,808,700 434,926
TELEPHONE SERVICES - 5.2%
Allegiance Telecom, Inc. (a) 600,000 48,375
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
Allied Riser Communications 155,900 $ 5,418
Corp.
AT&T Corp. 27,952,851 1,572,348
Bell Atlantic Corp. 8,579,100 524,397
BellSouth Corp. 12,157,400 571,398
Carrier1 International SA ADR 331,100 6,415
GTE Corp. 7,503,200 532,727
iBasis, Inc. 134,200 5,511
Illuminet Holdings, Inc. 117,400 5,780
Intermedia Communications, 541,000 26,137
Inc. (a)
ITXC Corp. 100,000 4,706
Level 3 Communications, Inc. 1,000,000 105,750
(a)
MCI WorldCom, Inc. (a) 23,045,024 1,044,228
McLeodUSA, Inc. Class A (a) 400,000 33,925
Metromedia Fiber Network, 1,056,800 102,245
Inc. Class A (a)
NEXTLINK Communications, Inc. 300,000 37,106
Class A (a)
Qwest Communications 3,777,400 183,204
International, Inc. (a)
SBC Communications, Inc. 15,747,214 661,383
Sprint Corp. - FON Group 2,964,400 186,757
Williams Communications 311,400 16,134
Group, Inc.
5,673,944
TOTAL UTILITIES 7,671,169
TOTAL COMMON STOCKS 107,282,348
(Cost $56,991,559)
PREFERRED STOCKS - 0.0%
CONVERTIBLE PREFERRED STOCKS
- - 0.0%
BASIC INDUSTRIES - 0.0%
CHEMICALS & PLASTICS - 0.0%
Sealed Air Corp. Series A, 416,242 21,619
$2.00
NONCONVERTIBLE PREFERRED
STOCKS - 0.0%
TECHNOLOGY - 0.0%
COMPUTERS & OFFICE EQUIPMENT
- - 0.0%
Ampex Corp. 8% non-cumulative 1,201 1,874
TOTAL PREFERRED STOCKS 23,493
(Cost $20,487)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -
0.1%
MOODY'S RATINGS (UNAUDITED) PRINCIPAL AMOUNT (000S) VALUE (NOTE 1) (000S)
U.S. Treasury Bills, yield at - $ 80,000 $ 79,519
date of purchase 5.64%
5/11/00 (Cost $79,494)
COMMERCIAL MORTGAGE
SECURITIES - 0.0%
Bardell Associates Note Trust - 3,927 4,172
12.5%, 11/1/08 (f) (Cost
$3,992)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
CASH EQUIVALENTS - 1.9%
MATURITY AMOUNT (000S)
Investments in repurchase
agreements (U.S. Treasury
Obligations), in a joint
trading account at:
6%, dated 3/31/00 due 4/3/00 $ 3,877 3,875
6.11%, dated 3/31/00 due 30,898 30,882
4/3/00
SHARES
Taxable Central Cash Fund, 2,079,157,726 2,079,158
5.85% (b)
TOTAL CASH EQUIVALENTS 2,113,915
(Cost $2,113,915)
TOTAL INVESTMENT PORTFOLIO - 109,503,447
100.4%
(Cost $59,209,447)
NET OTHER ASSETS - (0.4)% (408,499)
NET ASSETS - 100% $ 109,094,948
</TABLE>
LEGEND
(a) Non-income producing
(b) The rate quoted is the annualized seven-day yield of the fund at
period end.
(c) Affiliated company
(d) 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 $19,000 or 0.0% of net assets.
(e) Share amount represents number of units held.
(f) Restricted securities - Investment in securities not registered
under the Securities Act of 1933.
Additional information on each holding is as follows:
SECURITY ACQUISITION DATE ACQUISITION COST (000S)
Alliance Gaming Corp. 7/28/98 $ -
Bardell Associates Note 4/19/94 $ 3,992
Trust 12.5%, 11/1/08
INCOME TAX INFORMATION
At March 31, 2000, the aggregate
cost of investment securities for income
tax purposes was $59,438,243,000.
Net unrealized appreciation aggre-
gated $50,065,204,000, of which $53,297,313,000 related to appreciated
investment securities and $3,232,109,000 related to depreciated
investment securities.
The fund hereby designates approxi-
mately $7,127,117,000 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, 2000
ASSETS
Investment in securities, at $ 109,503,447
value (including repurchase
agreements of $34,757) (cost
$59,209,447) - See
accompanying schedule
Cash 1
Receivable for investments 405,729
sold
Receivable for fund shares 195,579
sold
Dividends receivable 76,084
Interest receivable 7,915
Other receivables 6,157
TOTAL ASSETS 110,194,912
LIABILITIES
Payable for investments $ 271,477
purchased
Payable for fund shares 200,605
redeemed
Accrued management fee 63,438
Other payables and accrued 20,420
expenses
Collateral on securities 544,024
loaned, at value
TOTAL LIABILITIES 1,099,964
NET ASSETS $ 109,094,948
Net Assets consist of:
Paid in capital $ 56,424,159
Undistributed net investment 70,989
income
Accumulated undistributed net 2,306,111
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 50,293,689
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 761,533 $ 109,094,948
shares outstanding
NET ASSET VALUE and $143.26
redemption price per share
($109,094,948 (divided by)
761,533 shares)
Maximum offering price per $147.69
share (100/97.00 of $143.26)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED MARCH 31, 2000
INVESTMENT INCOME $ 874,317
Dividends (including $19,374
received from affiliated
issuers)
Interest 295,015
Security lending 3,746
TOTAL INCOME 1,173,078
EXPENSES
Management fee Basic fee $ 565,221
Performance adjustment (11,228)
Transfer agent fees 167,997
Accounting and security 2,068
lending fees
Non-interested trustees' 461
compensation
Custodian fees and expenses 1,990
Registration fees 3,898
Audit 460
Legal 1,233
Interest 1
Reports to shareholders 2,297
Miscellaneous 137
Total expenses before 734,535
reductions
Expense reductions (9,986) 724,549
NET INVESTMENT INCOME 448,529
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 5,646,703
(including realized gain of
$47,626 on sales of
investments in affiliated
issuers)
Foreign currency transactions (848)
Futures contracts (20,806) 5,625,049
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 13,131,582
Assets and liabilities in 54 13,131,636
foreign currencies
NET GAIN (LOSS) 18,756,685
NET INCREASE (DECREASE) IN $ 19,205,214
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED MARCH 31, 2000 YEAR ENDED MARCH 31, 1999
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 448,529 $ 497,762
income
Net realized gain (loss) 5,625,049 7,011,764
Change in net unrealized 13,131,636 10,747,841
appreciation (depreciation)
NET INCREASE (DECREASE) IN 19,205,214 18,257,367
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (538,548) (449,343)
From net investment income
From net realized gain (8,240,210) (3,441,624)
TOTAL DISTRIBUTIONS (8,778,758) (3,890,967)
Share transactions Net 19,790,882 14,971,374
proceeds from sales of shares
Reinvestment of distributions 8,608,613 3,818,924
Cost of shares redeemed (20,445,861) (14,410,125)
NET INCREASE (DECREASE) IN 7,953,634 4,380,173
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 18,380,090 18,746,573
IN NET ASSETS
NET ASSETS
Beginning of period 90,714,858 71,968,285
End of period (including $ 109,094,948 $ 90,714,858
undistributed net investment
income of $70,989 and
$178,509, respectively)
OTHER INFORMATION
Shares
Sold 151,936 132,746
Issued in reinvestment of 67,297 34,759
distributions
Redeemed (156,828) (129,759)
Net increase (decrease) 62,405 37,746
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED MARCH 31, 2000 1999 1998 1997 1996
SELECTED PER-SHARE DATA
Net asset value, beginning $ 129.75 $ 108.82 $ 80.20 $ 87.52 $ 72.44
of period
Income from Investment
Operations
Net investment income .59 C .73 C .73 C 1.38 C .79
Net realized and unrealized 25.04 26.02 34.35 5.25 19.57
gain (loss)
Total from investment 25.63 26.75 35.08 6.63 20.36
operations
Less Distributions
From net investment income (.73) (.67) (1.25) (1.10) (.59)
From net realized gain (11.39) (5.15) (5.21) (12.85) (4.69)
Total distributions (12.12) (5.82) (6.46) (13.95) (5.28)
Net asset value, end of period $ 143.26 $ 129.75 $ 108.82 $ 80.20 $ 87.52
TOTAL RETURN A, B 21.11% 25.63% 45.41% 9.11% 28.43%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 109,095 $ 90,715 $ 71,968 $ 51,243 $ 56,179
(in millions)
Ratio of expenses to average .75% .62% .62% .66% .95%
net assets
Ratio of expenses to average .74% D .60% D .61% D .64% D .92% D
net assets after expense
reductions
Ratio of net investment .46% .66% .77% 1.75% .95%
income to average net assets
Portfolio turnover rate 28% 37% 34% 67% 155%
</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, 2000
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 exchange quotations are
readily available are valued at the last sale price, or if no sale
price, at the closing bid price. Foreign securities are valued based
on quotations from the principal market in which such securities are
normally traded. If trading or events occurring in other markets after
the close of the principal market in which foreign securities are
traded, and before the close of the business of the fund, are expected
to materially affect the value of those securities, then they are
valued at their fair value taking this trading or these events into
account. Fair value is determined in good faith under consistently
applied procedures under the general supervision of the Board of
Trustees. Securities (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.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INCOME TAXES - CONTINUED
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. 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, futures transactions, foreign
currency transactions, 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.
2. OPERATING POLICIES - CONTINUED
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 in one or more
repurchase agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury, Federal Agency,
or other obligations found to be satisfactory by FMR 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. 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.
FUTURES CONTRACTS. The fund may use futures contracts to manage its
exposure to the stock market. Buying futures tends to increase the
fund's exposure to the underlying instrument, while selling futures
tends 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 or if the counterparties do not
perform under the contracts' terms. Gains (losses) are realized upon
the expiration or closing of the futures contracts. Futures contracts
are valued at the settlement price established each day by the board
of trade or exchange on which they are traded.
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 $4,184,000 or 0.0% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $29,495,667,000 and $25,738,460,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $3,961,394,000 and $3,940,588,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a
monthly basic fee that is calculated on the basis of a group fee rate
plus a fixed individual fund fee rate applied to the average net
assets of the fund. The group fee rate is the weighted average of a
series of rates and is based on the monthly average net assets of all
the mutual funds advised by FMR. The rates ranged from .2167% to
.5200% for the period. The annual individual fund fee rate is .30%. In
the event that these rates were lower than the contractual rates in
effect during the period, FMR voluntarily implemented the above rates,
as they resulted in the 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 .57% 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 $11,728,000 on sales of shares of the fund of which
$11,712,000 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 .17% 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 $1,622,000 for the
period.
5. SECURITY LENDING.
The fund lends portfolio securities from time to time in order to earn
additional income. The fund receives collateral in the form of U.S.
Treasury obligations, letters of credit, and/or cash against the
loaned securities, and maintains collateral in an amount not less than
100% of the market value of the loaned securities during the period of
the loan. The market value of the loaned securities is determined at
the close of business of the fund and any additional required
collateral is delivered to the fund on the next business day. If the
borrower defaults on its obligation to return the securities loaned
because of insolvency or other reasons, the fund could experience
delays and costs in recovering the securities loaned or in gaining
access to the collateral. At period end, the value of the securities
loaned amounted to $529,666,000. The fund received cash collateral of
$544,024,000 which was invested in cash equivalents.
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. The interest
rate on the borrowings is the bank's base rate, as revised from time
to time. The average daily loan balance during the period for which
the loan was outstanding amounted to $4,963,000. The weighted average
interest rate was 6.10%.
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 $4,377,000 under this arrangement.
In addition, through arrangements with the fund's custodian and
transfer agent, credits realized as a result of uninvested cash
balances were used to reduce a portion of the fund's expenses. During
the period, the fund's custodian and transfer agent fees were reduced
by $13,000 and $5,596,000, 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:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C> <C> <C>
SUMMARY OF TRANSACTIONS WITH
AFFILIATED COMPANIES
AFFILIATE PURCHASE COST SALES COST DIVIDEND INCOME VALUE
Anadarko Petroleum Corp. $ - $ 2,774 $ 1,287 $ 247,987
Black & Decker Corp. - 13,007 527 -
Case Corp. - 5,494 - -
Extended Stay America, Inc. - - - 43,947
Host Marriott Services Corp. - 5,639 - -
Host Marriott Corp. - 9,682 9,876 102,063
Lafarge Corp. 2,822 1,739 2,681 107,274
Landstar System, Inc. - 1,987 - -
Leggett & Platt, Inc. 3,262 1,163 4,557 269,109
Lycos, Inc. 21,740 - - 400,313
Oakwood Homes Corp. - 16,301 110 -
Polo Ralph Lauren Corp. Class - - - 43,611
A
Pulte Corp. - 8,976 336 -
Rambus, Inc. 1,371 12,934 - -
Swift Transportation Co., Inc. - 2,307 - 68,057
Synetic, Inc. - 7,096 - -
TOTALS $ 29,195 $ 89,099 $ 19,374 $ 1,282,361
</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, 2000, and the results of its
operations, the changes in its net assets and the financial highlights
for the periods indicated, in conformity with accounting principles
generally accepted in the United States. These financial statements
and financial highlights (hereafter referred to as "financial
statements") are the responsibility of the Fidelity 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 auditing standards
generally accepted in the United States which require that we plan and
perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts
and disclosures in the financial statements, assessing the accounting
principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe
that our audits, which included confirmation of securities at March
31, 2000 by correspondence with the custodian and brokers, provide a
reasonable basis for the opinion expressed above.
PricewaterhouseCoopers LLP
Boston, Massachusetts
May 5, 2000
DISTRIBUTIONS
The Board of Trustees of Fidelity Magellan Fund voted to pay on May 8,
2000, to shareholders of record at the opening of business on May 5,
2000, a distribution of $2.83 per share derived from capital gains
realized from sales of portfolio securities and a dividend of $.07 per
share from net investment income.
The fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends.
A total of 40% of the dividends distributed during the fiscal year
qualifies for the dividends-received deduction for corporate
shareholders.
The fund will notify shareholders in January 2001 of amounts for use
in preparing 2000 income tax returns.
PROXY VOTING RESULTS
A special meeting of the fund's shareholders was held on April 19,
2000. The results of votes taken among shareholders on proposals
before them are reported below. Each vote reported represents one
dollar of net asset value held on the record date for the meeting.
PROPOSAL 1
To elect as Trustees the following twelve nominees.*
# OF % OF
SHARES VOTED SHARES VOTED
RALPH F. COX
Affirmative 47,778,566,958.75 97.804
Affirmative 1,072,956,696.00 2.196
TOTAL 48,851,523,654.75 100.000
PHYLLIS BURKE DAVIS
Affirmative 47,762,904,985.29 97.772
Withheld 1,088,618,669.46 2.228
TOTAL 48,851,523,654.75 100.000
ROBERT M. GATES
Affirmative 47,752,919,504.85 97.751
Withheld 1,098,604,149.90 2.249
TOTAL 48,851,523,654.75 100.000
EDWARD C. JOHNSON 3D
Affirmative 47,787,170,484.65 97.821
Withheld 1,064,353,170.10 2.179
TOTAL 48,851,523,654.75 100.000
DONALD J. KIRK
Affirmative 47,796,061,087.46 97.839
Withheld 1,055,462,567.29 2.161
TOTAL 48,851,523,654.75 100.000
NED C. LAUTENBACH
Affirmative 47,818,648,404.06 97.886
Withheld 1,032,875,250.69 2.114
TOTAL 48,851,523,654.75 100.000
# OF % OF
SHARES VOTED SHARES VOTED
PETER S. LYNCH
Affirmative 47,822,482,277.60 97.894
Withheld 1,029,041,377.15 2.106
TOTAL 48,851,523,654.75 100.000
WILLIAM O. MCCOY
Affirmative 47,794,383,910.29 97.836
Withheld 1,057,139,744.46 2.164
TOTAL 48,851,523,654.75 100.000
GERALD C. MCDONOUGH
Affirmative 47,733,985,082.40 97.712
Withheld 1,117,538,572.35 2.288
TOTAL 48,851,523,654.75 100.000
MARVIN L. MANN
Affirmative 47,802,567,997.59 97.853
Withheld 1,048,955,657.16 2.147
TOTAL 48,851,523,654.75 100.000
ROBERT C. POZEN
Affirmative 47,809,996,145.70 97.868
Withheld 1,041,527,509.05 2.132
TOTAL 48,851,523,654.75 100.000
THOMAS R. WILLIAMS
Affirmative 47,742,665,876.65 97.730
Withheld 1,108,857,778.10 2.270
TOTAL 48,851,523,654.75 100.000
PROPOSAL 2
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of the fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 46,744,569,034.06 95.687
Against 694,581,708.84 1.422
Abstain 1,412,372,911.85 2.891
TOTAL 48,851,523,654.75 100.000
PROPOSAL 3
To adopt an Amended and Restated Declaration of Trust.*
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 44,286,749,798.39 90.656
Against 2,436,160,884.26 4.987
Abstain 2,128,612,972.10 4.357
TOTAL 48,851,523,654.75 100.000
PROPOSAL 4
To approve an amended management contract for the fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 43,972,875,638.05 90.013
Against 2,653,284,540.29 5.432
Abstain 2,225,363,476.41 4.555
TOTAL 48,851,523,654.75 100.000
PROPOSAL 5
To approve an amended sub-advisory agreement with Fidelity Management
& Research (U.K.) Inc. for the fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 44,242,186,686.46 90.565
Against 2,289,144,347.16 4.686
Abstain 2,320,192,621.13 4.749
TOTAL 48,851,523,654.75 100.000
PROPOSAL 6
To approve an amended sub-advisory agreement with Fidelity Management
& Research (Far East) Inc. for the fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 44,160,792,119.39 90.398
Against 2,344,891,893.67 4.800
Abstain 2,345,839,641.69 4.802
TOTAL 48,851,523,654.75 100.000
PROPOSAL 7
To approve a Distribution and Service Plan pursuant to Rule 12b-1 for
the fund.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 44,508,717,920.32 91.110
Against 1,881,369,236.04 3.851
Abstain 2,461,436,498.39 5.039
TOTAL 48,851,523,654.75 100.000
PROPOSAL 8
To amend the fund's fundamental limitation concerning diversification
to permit increased investment in the securities of any single issuer.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 43,328,804,685.14 88.695
Against 3,287,061,424.32 6.729
Abstain 2,235,657,545.29 4.576
TOTAL 48,851,523,654.75 100.000
PROPOSAL 9
To amend the fund's fundamental limitation concerning diversification
to exclude securities of other investment companies from the
limitation.
# OF % OF
SHARES VOTED SHARES VOTED
Affirmative 43,577,348,098.33 89.204
Against 2,889,397,470.84 5.914
Abstain 2,384,778,085.58 4.882
TOTAL 48,851,523,654.75 100.000
* DENOTES TRUST-WIDE PROPOSALS AND VOTING RESULTS.
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 Automated Service Telephone 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)FIDELITY AUTOMATED
SERVICE TELEPHONE (FASTSM)
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 1-800-544-0240 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 75039-5587
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 75039-5587
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 500
Merrimack, NH 03054-0500
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
815 East Birch Street
Brea, CA
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GEORGIA
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ILLINOIS
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INDIANA
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MAINE
3 Canal Plaza
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MARYLAND
7401 Wisconsin Avenue
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MASSACHUSETTS
470 Boylston Street
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Boston, MA
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NEW JERSEY
150 Essex Street
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Morristown, NJ
501 Route 17, South
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NEW YORK
1055 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
1271 Avenue of the Americas
New York, NY
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New York, NY
350 Park Avenue
New York, NY
NORTH CAROLINA
4611 Sharon Road
Charlotte, NC
OHIO
600 Vine Street
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28699 Chagrin Boulevard
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Philadelphia, PA
439 Fifth Avenue
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TENNESSEE
6150 Poplar Road
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
4017 Northwest Parkway
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1155 Dairy Ashford Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
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14100 San Pedro
San Antonio, TX
19740 IH 45 North
Spring, TX
UTAH
215 South State Street
Salt Lake City, UT
VIRGINIA
1861 International Drive
McLean, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
511 Pine Street
Seattle, WA
WASHINGTON, DC
1900 K Street, N.W.
Washington, DC
WISCONSIN
595 North Barker Road
Brookfield, WI
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISERS
Fidelity Management & Research
(U.K.) Inc.
Fidelity Management & Research
(Far East) Inc.
Fidelity Investments Japan Ltd.
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
Robert A. Dwight, Treasurer
Matthew N. Karstetter, Deputy Treasurer
Maria F. Dwyer, Deputy Treasurer
John H. Costello, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
Donald J. Kirk *
Ned C. Lautenbach *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Michael Cook
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
* INDEPENDENT TRUSTEES
MAG-ANN-0500 100666
1.702307.102
CUSTODIAN
State Street Bank and Trust Company
Quincy, MA
FIDELITY'S GROWTH FUNDS
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Stock Selector
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TechnoQuantGrowthSM Fund
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THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions
and Account Assistance 1-800-544-6666
Product Information 1-800-544-6666
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)
Fidelity Automated Service
Telephone (FASTSM) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(2_FIDELITY_LOGOS)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
