(2_FIDELITY_LOGOS)FIDELITY
EQUITY-INCOME II
FUND
ANNUAL REPORT
NOVEMBER 30, 1993
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the last six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 28 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 32 Footnotes to the financial
statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
Once the new year begins, many people start reviewing their finances and
calculating their tax bills. No one wants to pay more taxes than they have
to. But a recent survey of 500 U.S. households, conducted by Fidelity and
Yankelovich Partners, showed that few people have taken steps to reduce
their taxes under the new legislation. Many were not even aware that the
new tax laws were retroactive to January 1993.
Whether or not you're someone whose tax bill will increase as a result of
these changes, it may make sense to consider ways to keep more of what you
earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in Federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider tax-free investments like municipal bonds and municipal
bond funds. Often these can provide higher after-tax yields than comparable
taxable investments. For example, if you're in the new 36% Federal income
tax bracket and invest $10,000 in a taxable investment yielding 7%, you'll
pay $252 in Federal taxes and receive $448 in income. That same $10,000
invested in a tax-free bond fund yielding 5.5% would allow you to keep $550
in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1993 PAST 1 LIFE OF
YEAR FUND
Equity-Income II 19.08% 112.04%
S&P 500(Registered trademark) 10.10% 55.72%
Average Equity Income Fund 13.66% 63.10%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, one year, or since the fund began on
August 21, 1990. For example, if you invested $1,000 in a fund that had a
5% return over the past year, you would end up with $1,050. You can compare
the fund's returns to the performance of the Standard & Poor's 500
Composite Stock Price Index - a common proxy for the U.S. stock market. You
can also compare them to the average equity income fund, which reflects the
performance of 92 equity income funds with similar objectives tracked by
Lipper Analytical Services. Both benchmarks include reinvested dividends
and capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1993 PAST 1 LIFE OF
YEAR FUND
Equity-Income II 19.08% 25.74%
S&P 500(Registered trademark) 10.10% 14.45%
Average Equity Income Fund 13.66% 16.03%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Equity-Income II (319) S&P 500
08/21/90 10000.00 10000.00
08/31/90 10090.00 9833.94
09/30/90 9790.00 9355.02
10/31/90 9790.00 9314.80
11/30/90 10180.00 9916.53
12/31/90 10451.06 10193.20
01/31/91 10954.00 10637.63
02/28/91 11929.70 11398.22
03/31/91 12425.00 11674.06
04/30/91 12770.42 11702.07
05/31/91 13420.62 12207.60
06/30/91 13105.68 11648.49
07/31/91 13833.74 12191.31
08/31/91 14361.43 12480.25
09/30/91 14456.52 12271.83
10/31/91 14904.70 12436.27
11/30/91 14456.52 11935.09
12/31/91 15320.98 13300.46
01/31/92 15754.68 13053.08
02/29/92 16262.55 13222.77
03/31/92 16199.85 12964.92
04/30/92 16550.86 13346.09
05/31/92 16731.69 13411.49
06/30/92 16626.26 13211.65
07/31/92 17139.48 13752.01
08/31/92 16786.64 13470.10
09/30/92 17001.03 13629.04
10/31/92 17140.73 13676.74
11/30/92 17807.02 14143.12
12/31/92 18240.50 14317.08
01/31/93 18739.34 14437.34
02/28/93 19071.80 14633.69
03/31/93 19793.83 14942.46
04/30/93 19849.52 14580.86
05/31/93 20150.27 14971.62
06/30/93 20341.48 15015.04
07/31/93 20542.99 14954.98
08/31/93 21214.70 15521.77
09/30/93 21136.44 15402.26
10/31/93 21530.15 15721.08
11/30/93 21203.93 15571.73
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Equity-Income II Fund on August 21, 1990, when the fund started. As the
chart shows, by November 30, 1993, the value of your investment would have
grown to $21,204 - a 112.04% increase on your initial investment. For
comparison, look at how the S&P 500 did over the same period. With
dividends reinvested, the same $10,000 investment would have grown to
$15,572 - a 55.72% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
MARKET RECAP
Low inflation, falling interest rates
and a gradually improving
economy boosted U.S. stocks
during the 12 months ended
November 30, 1993. The Standard
& Poor's 500 index - a broad
measure of U.S. stock
performance - rose 10.10%, in
line with the market's long-term
average annual return. Continued
poor performance by tobacco, drug
and brand-name consumer
products stocks was offset by
impressive results in other sectors,
including technology, although
semiconductors gave back part of
their gains in October and
November. Other market leaders
were finance, notably securities
brokers; autos; entertainment; and
precious metals. Communications
stocks soared as traditional
telephone utilities, cellular
communications companies and
entertainment companies
scrambled to form strategic
alliances. Mergers and acquisitions
activity resumed at a pace
reminiscent of the 1980s. The
NASDAQ Composite Index, which
tracks over-the-counter stocks,
rose 15.57% for the year,
compared to 14.73% for the Dow
Jones Industrial Average, an index
of 30 blue-chip stocks. Both trailed
the Morgan Stanley EAFE
(Europe, Australia, Far East) index,
which rose 24.27%. Two widely
watched benchmarks broke
records during the period: slow
growth and the prospect of higher
taxes helped push the yield on the
30-year Treasury below 6% in
early September; meanwhile, the
Dow closed above 3700 for the
first time in mid-November, and
finished the month at 3684.
An Interview with Brian S. Posner, Portfolio Manager of Fidelity
Equity-Income II Fund
Q. BRIAN, HOW HAS THE FUND PERFORMED DURING THE LAST YEAR?
A. For the 12 months ended November 30, 1993, the fund delivered a total
return of 19.08%. That was ahead of the average equity-income fund's
return, which was 13.66% according to Lipper Analytical Services. The fund
also outpaced the Standard and Poor's 500 index, which gained 10.10%.
Q. WHAT DROVE THE FUND'S PERFORM-ANCE DURING THE PERIOD?
A. The fund's gains came from a broad cross-section of stocks. For example,
we profited by investing in companies in the oil and gas industry that are
cutting costs or have the potential to increase their production. One of
our largest holdings was British Petroleum, which accounts for 3.2% of the
fund's investments and was a strong performer. The fund also owned stock in
companies such as Apache and Parker & Parsley, which benefited from
strong natural gas prices. I continued to invest heavily in banks and
S&Ls, although I became more selective as share prices of financial
services firms rose during the year. Among banks, I concentrated on firms
such as Citicorp, whose stock price rose sharply as investors recognized
the enormous improvement in the company's balance sheet and its growing
earnings power. Among S&Ls, the fund owned shares of financially strong
companies such as Standard Federal Bank, a Michigan-based S&L, which
was also a strong performer. Ford and Chrysler also contributed to the
fund's performance.
Q. THE FUND'S ASSET SIZE HAS MORE THAN DOUBLED THIS YEAR, FROM $1.9 BILLION
TO $4.8 BILLION. SHOULD SHAREHOLDERS BE CONCERNED THAT THIS GROWTH WILL
AFFECT PERFORMANCE?
A. As the fund becomes larger, it is somewhat more difficult to buy and
sell shares of small companies without influencing their prices in ways
that penalize the fund's returns. But because I invest with a 12- to
24-month horizon, I can move gradually into or out of those issues, which
helps alleviate that problem. Overall, I feel that any impact on
performance resulting from the fund's growth has been minimal.
Q. ANY DISAPPOINTMENTS?
A. Aluminum stocks such as Reynolds Metals have been very frustrating.
Aluminum is one commodity that looks like it should rise in price in the
foreseeable future. Worldwide demand is going up and production capacity
down. Meanwhile, the stocks are much cheaper than other commodity-based
stocks where the outlook for price increases isn't nearly as good. So far,
the problem has been that the Russians are producing far more aluminum than
they can use and dumping the excess on the world market. I expect that this
scenario should improve over the next one to two years, so I'm sticking
with these stocks.
Q. THE FUND'S STAKE IN TRANSPORTATION STOCKS HAS MOVED UP SHARPLY IN RECENT
MONTHS, TO OVER 5%. WHY?
A. I recently invested in the convertible preferred stocks issued by UAL
and AMR, the parent corporations of United and American Airlines,
respectively. The airline industry has finally started to cut back on
capacity, which should help bolster prices and profitability. In addition,
there is a renewed interest in controlling general operating costs. I
bought the convertible issues because they were attractively priced
relative to the common stocks. If the stocks rise, the fund should
participate in most of those gains through the convertibles. And while we
wait for that to happen, the fund will collect higher yields on the
convertibles than it would if I bought the common shares themselves.
Q. WHAT ROLE HAVE OVERSEAS STOCKS PLAYED IN THE FUND?
A. Foreign stocks account for roughly 19% of the fund's investments. I
don't aim to invest a set percentage of the fund's assets overseas. Instead
I take a stock-by-stock approach, just as I do in the U.S. During the year,
I found opportunities on a selective basis in Canada and the United
Kingdom, among other countries. For example, British financial stocks such
as Barclays Bank and National Westminster were very strong performers.
Q. WHAT'S THE OUTLOOK FOR THE FUND?
A. Unlike last year, in which rates fell to levels not seen in a
generation, the next 12 months are likely to bring relatively stable
interest rates. Investors should therefore be prepared for more modest
returns than those they may have enjoyed in recent years in both the stock
and bond markets. In addition, stock market valuations - as measured by
yardsticks like price-to- earnings ratios - have become quite high. In such
an environment, I intend to focus more on companies with solid business
prospects and relatively low valuations.
FUND FACTS
GOAL: to provide current
income and increase the
value
of the fund's shares
START DATE: August 21, 1990
SIZE: as of November 30,
1993, over $4.8 billion
MANAGER: Brian S. Posner,
since April 1992; manager,
Fidelity Value Fund, October
1990 - June 1992; Select
Energy Portfolio, 1990
(checkmark)
BRIAN S. POSNER ON HIS
INVESTMENT STRATEGY:
"I don't try to figure out what
sector of the economy or the
stock market is going to do
well. Instead, I take a very
stock-specific approach. In the
long run, that strategy works
best because it makes me
more familiar with the individual
stocks in the fund, so I know
why the fund owns them and
what they're worth. That way, I
have a very clear idea of when
to sell them or when to buy
more.
"The fund must invest at least
two-thirds of its assets in
securities that pay a dividend.
At the end of November the
figure was 74%. At times the
fund will invest in stocks that do
not pay a dividend, if I think
they can provide a superior
total return. An example of
such an investment is HCA -
Hospital Corporation of
America, which has done an
excellent job of reducing
operating costs and interest
expense, and has recently
agreed to be acquired by
Columbia Healthcare. "
(bullet) As of November 30, 1993,
the fund held 6.3% of its assets
in fixed- income securities,
including a 2.2% position in
bonds rated below investment
grade. It also held 19.9% of its
assets in cash.
DISTRIBUTIONS
The Board of Trustees of
Fidelity Equity-Income II Fund
voted to pay on December 20,
1993, to shareholders of
record at the opening of
business on December 17,
1993, a distribution of $.68
derived from capital gains
realized from sales of portfolio
securities and a dividend of
$.18 from net investment
income.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF NOVEMBER 30, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
British Petroleum PLC 3.2 3.0
Grace (W.R.) & Co. 1.8 1.1
HCA - Hospital Corporation of
America 1.3 0.9
Bank of New York, Inc. 1.3 1.5
Philip Morris Companies, Inc. 1.2 0.0
Litton Industries, Inc. 1.2 0.6
AMR Corp. $3.00 1.1 1.0
Reynolds Metals Co. 1.1 1.0
Canadian Pacific Ltd. Ord. 1.1 0.6
Dayton Hudson Corp. 1.1 0.4
TOP FIVE INDUSTRIES AS OF NOVEMBER 30, 1993
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Finance 17.7 18.2
Basic Industries 11.7 11.8
Energy 12.2 12.6
Conglomerates 5.8 4.8
Transportation 5.0 4.2
ASSET ALLOCATION
AS OF NOVEMBER 30, 1993* AS OF MAY 31, 1993*
Row: 1, Col: 1, Value: 19.9
Row: 1, Col: 2, Value: 6.7
Row: 1, Col: 3, Value: 4.5
Row: 1, Col: 4, Value: 34.45
Row: 1, Col: 5, Value: 34.45
Row: 1, Col: 1, Value: 16.6
Row: 1, Col: 2, Value: 8.1
Row: 1, Col: 3, Value: 4.2
Row: 1, Col: 4, Value: 35.55
Row: 1, Col: 5, Value: 35.55
Stocks 68.9%
Bonds 4.5%
Convertible
securities 6.7%
Short-term invest-
ments and other 19.9%
FOREIGN
INVESTMENTS 19.0%
Stocks 71.1%
Bonds 4.2%
Convertible
securities 8.1%
Short-term invest-
ments and other 16.6%
FOREIGN
INVESTMENTS 16.9%
*
*
INVESTMENTS NOVEMBER 30, 1993
Showing Percentage of Total Value of Investments
COMMON STOCKS - 68.7%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 0.6%
Flightsafety International, Inc. 505,000 $ 17,170 33942310
Martin Marietta Corp. 311,800 12,784 57290010
29,954
BASIC INDUSTRIES - 11.1%
CHEMICALS & PLASTICS - 4.3%
Akzo NV Ord. 141,600 13,094 01019910
Ferro Corp. 18,000 554 31540510
GEON 91,000 2,093 37246W10
Goodrich (B.F.) Company 83,400 3,638 38238810
Grace (W.R.) & Co. 2,284,500 89,095 38388310
Imperial Chemical Industries:
PLC ADR 116,100 5,239 45270450
Ord. 2,881,300 32,069 45270440
Lubrizol Corp. 102,800 3,290 54927110
Lyondell Petrochemical Co. 152,300 3,065 55207810
Monsanto Co. 172,500 11,730 61166210
OM Group, Inc. (b) 223,500 4,191 67087210
Potash Corp. of Saskatchewan 1,025,900 21,409 73755L10
Union Carbide Corp. 702,300 14,573 90558110
Vigoro Corp. 481,600 13,545 92675410
217,585
IRON & STEEL - 1.7%
Allegheny Ludlum Industries, Inc. 1,018,300 23,803 01690010
British Steel PLC:
ADR 13,200 239 11101530
Ord. 8,323,300 15,089 11101510
Cleveland Cliffs, Inc. 103,800 3,438 18589610
Inland Steel Industries, Inc. (b) 307,700 10,000 45747210
LTV Corp. (b) 799,400 11,591 50192110
USX-U.S. Steel Group 353,000 12,708 90337T10
Wheeling Pittsburgh Corp. (b) 650,000 10,725 96314210
87,593
METALS & MINING - 2.4%
Alcan Aluminum Ltd. 1,858,300 38,606 01371610
Alumax, Inc. 475,500 9,213 02219710
Aluminum Co. of America 96,308 6,669 02224910
De Beers Consolidated Mines Ltd. ADR 440,000 8,195 24025330
Reynolds Metals Co. 1,230,200 55,205 76176310
117,888
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
PACKAGING & CONTAINERS - 0.2%
Owens-Illinois, Inc. (b) 686,800 $ 7,641 69076840
PAPER & FOREST PRODUCTS - 2.5%
Champion International Corp. 672,600 20,683 15852510
Chesapeake Corp. 314,100 7,578 16515910
Georgia-Pacific Corp. 157,000 11,540 37329810
International Paper Co. 372,000 24,831 46014610
Pentair, Inc. 295,350 10,411 70963110
Repola OY 753,500 11,661 75999A92
Temple-Inland, Inc. 232,600 11,775 87986810
Union Camp Corp. 354,800 16,498 90553010
Willamette Industries, Inc. 238,900 11,467 96913310
126,444
TOTAL BASIC INDUSTRIES 557,151
CONGLOMERATES - 5.3%
Allied-Signal, Inc. 82,400 5,861 01951210
Canadian Pacific Ltd. Ord. 3,314,900 54,287 13644030
Christies International PLC 540,000 1,645 17099892
Dial Corp. (The) 507,800 19,487 25247010
GenCorp, Inc. 235,800 3,272 36868210
Hanson Trust PLC sponsored ADR 2,204,000 46,284 41135230
Litton Industries, Inc. (b) 924,068 60,295 53802110
Mark IV Industries, Inc. 188,527 3,558 57038710
Standex International Corp. 261,900 6,482 85423110
Suncor, Inc. 245,000 5,411 86722910
Textron, Inc. 771,200 42,512 88320310
United Technologies Corp. 278,000 17,201 91301710
266,295
CONSTRUCTION & REAL ESTATE - 1.6%
BUILDING MATERIALS - 0.7%
Armstrong World Industries, Inc. 389,000 17,845 04247610
BPB Industries PLC 498,000 2,061 05562299
Lafarge Corp. 161,200 3,224 50586210
Medusa Corp. 221,550 5,594 58507230
USG Corp. (b) 276,700 6,883 90329340
35,607
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
CONSTRUCTION - 0.1%
Lennar Corp. 120,000 $ 3,570 52605710
ENGINEERING - 0.2%
EG&G, Inc. 671,200 11,914 26845710
REAL ESTATE INVESTMENT TRUSTS - 0.6%
Associated Estates Realty Corp. REIT 65,600 1,312 04560410
Bradley Real Estate Trust (SBI) 450,000 3,712 10458310
Carr Realty Corp. 132,700 3,102 14441K10
Crown American Realty Trust (SBI) 114,500 1,861 22818610
Developers Diversified Realty 100,000 2,700 25159110
Excel Realty Trust, Inc. 41,300 785 30067R10
Federal Realty Investment Trust 47,100 1,242 31374720
Kimco Realty Corporation 2,500 80 49446R10
LTC Properties, Inc. 103,400 1,318 50217510
Nationwide Health Properties, Inc. 20,800 785 63862010
New Plan Realty Trust 32,127 743 64805910
Taubman Centers, Inc. 142,500 1,799 87666410
Urban Shopping Centers, Inc. REIT (b) 87,000 1,827 91706010
Vornado Realty Trust 84,400 3,144 92904210
Weingarten Realty Investors (SBI) 37,800 1,441 94874110
Western Investment Real Estate Trust (SBI) 87,100 1,176 95846810
27,027
TOTAL CONSTRUCTION & REAL ESTATE 78,118
DURABLES - 0.6%
AUTOS, TIRES, & ACCESSORIES - 0.1%
Volvo Aktiebolaget Class B (b) 90,000 4,402 92885630
CONSUMER ELECTRONICS - 0.3%
Newell Co. 216,900 8,730 65119210
Sony Corp. 134,000 5,738 83569999
14,468
TEXTILES & APPAREL - 0.2%
Kellwood Co. 90,800 3,450 48804410
Stride Rite Corp. 291,600 5,394 86331410
Unifi, Inc. 179,600 4,468 90467710
13,312
TOTAL DURABLES 32,182
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - 10.9%
COAL - 0.1%
Pittston Co. Minerals Group 313,920 $ 6,985 72570120
ENERGY SERVICES - 2.1%
BJ Services Co. 146,300 3,219 05548210
Baker Hughes, Inc. 539,000 10,713 05722410
Enterra Corp. (b) 61,300 1,103 29380510
Halliburton Co. 1,070,400 33,049 40621610
Offshore Logistics, Inc. (b) 142,500 2,173 67625510
Schlumberger Ltd. 777,900 44,729 80685710
Smith International, Inc. (b) 173,000 1,535 83211010
Tidewater, Inc. 302,500 6,050 88642310
102,571
OIL & GAS - 8.7%
Amerada Hess Corp. 1,104,400 51,493 02355110
Apache Corp. 224,000 4,900 03741110
British Borneo Petroleum 154,500 475 11099D22
British Petroleum PLC:
ADR 2,425,900 143,735 11088940
Ord. 3,397,225 16,760 11088910
Burlington Resources, Inc. 412,600 18,567 12201410
Louisiana Land & Exploration Co. 251,200 9,954 54626810
Murphy Oil Corp. 817,400 32,798 62671710
Newfield Exploration Co. (b) 167,000 2,735 65129010
Noble Affiliates, Inc. 191,988 4,752 65489410
Norsk Hydro A.S. 225,000 6,364 65653150
Norsk Hydro A.S. ADR (b) 266,200 7,420 65653160
Occidental Petroleum Corp. 815,000 14,466 67459910
Parker & Parsley Petroleum Co. 200,100 4,102 70101810
Petro-Canada 200,000 1,797 71644E10
Petroleum Heat & Power, Inc. Class A 537,700 5,243 71660030
Repsol SA sponsored ADR 586,700 16,794 76026T20
Royal Dutch Petroleum Co. 517,203 52,238 78025770
Total Compagnie Francaise des Petroles Class B (b) 676,028 34,420
20434510
Total SA sponsored ADR (b) 161,467 4,097 89151E10
YPF Sociedad Anonima sponsored ADR representing
Class D shares 205,500 5,086 98424510
438,196
TOTAL ENERGY 547,752
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - 14.5%
BANKS - 5.5%
BNP CI Ord. 137,700 $ 6,586 05599996
Banco de Santander Ord. (Reg.) 50,000 2,172 05957410
Banco Central SA (Reg.) 107,300 2,334 05947010
Banco Popular Espanol 57,700 6,318 05999110
Bank of Boston Corp. 2,226,357 48,423 06071610
Bank of Ireland U.S. Holdings Inc. 2,985,000 12,220 06278793
Bank of New York Co., Inc. 1,163,632 64,581 06405710
BanPonce Corp. 301,262 8,963 06670410
Barclays PLC Ord. 2,115,000 18,386 06738E10
Citicorp (b) 832,000 29,536 17303410
First Empire State Corp. 86,100 12,011 32007610
First Fidelity Bancorporation 1,003,414 42,018 32019510
NationsBank Corp. 221,615 10,444 63858510
Westpac Banking Corp. 4,750,726 13,309 96121410
277,301
CREDIT & OTHER FINANCE - 2.7%
American Express Co. 665,000 20,864 02581610
Argentaria Corp. Bancaria de Espana (b) 167,400 7,153 21991392
Beneficial Corp. 524,600 38,689 08172110
Corporacion Bancaria de Espana
SA sponsored ADR (b) 267,000 5,741 21991310
Dean Witter Discover & Co. 291,924 11,093 24240V10
GFC Financial Corp. 719,900 19,437 36160910
Household International, Inc. 615,105 20,298 44181510
Primerica Corp. 241,724 9,669 74158910
132,944
FEDERAL SPONSORED CREDIT - 1.1%
Federal Home Loan Mortgage Corporation 909,600 43,661 31340030
Federal National Mortgage Association 50,000 3,775 31358610
Student Loan Marketing Association 150,000 6,675 86387150
54,111
INSURANCE - 3.7%
ACE Ltd. 683,600 19,910 00499G92
Allstate Corp. (b) 720,100 21,243 02000210
American Bankers Insurance Group, Inc. 326,400 7,834 02445610
American General Corp. 237,200 6,375 02635110
American Reinsurance Corp. (b) 65,900 1,779 02916310
Capital Holding Corp. 465,900 17,821 14018610
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Exel Ltd. 446,200 $ 19,354 30161610
Loews Corp. 520,600 48,155 54042410
Midocean Reinsurance Ord. (b) 300,000 6,413 59899993
Penncorp. Financial Group, Inc. 309,900 5,888 70809410
Sedgwick Group 585,621 1,653 81482610
St. Paul Companies, Inc. (The) 274,000 24,317 79286010
Torchmark Corp. 52,500 2,310 89102710
Willis Coroon PLC Ord. (b) 352,000 1,242 97062410
184,294
SAVINGS & LOANS - 1.3%
Ahmanson (H.F.) & Co. 1,544,700 29,156 00867710
Golden West Financial Corp. 172,700 6,671 38131710
Standard Federal Bank 1,073,600 30,866 85338910
66,693
SECURITIES INDUSTRY - 0.2%
Paine Webber Group, Inc. 467,600 12,450 69562910
TOTAL FINANCE 727,793
HEALTH - 2.1%
DRUGS & PHARMACEUTICALS - 0.3%
Upjohn Co. 473,700 14,803 91530210
MEDICAL EQUIPMENT & SUPPLIES - 0.1%
Johnson & Johnson 100,000 4,363 47816010
MEDICAL FACILITIES MANAGEMENT - 1.7%
Columbia Healthcare Corp. 659,900 19,137 19767910
HCA - Hospital Corporation of America Class A (b) 2,191,400 64,646
40412010
83,783
TOTAL HEALTH 102,949
INDUSTRIAL MACHINERY & EQUIPMENT - 3.2%
ELECTRICAL EQUIPMENT - 1.3%
Alcatel Alsthom CGE 65,000 8,523 01390492
General Electric Co. 332,100 32,629 36960410
Itel Corp. (b) 95,554 2,449 46564210
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
ELECTRICAL EQUIPMENT - CONTINUED
Philips Electronics 869,700 $ 16,907 71833799
Philips NV (NY shs.) (b) 314,000 6,123 71833750
66,631
INDUSTRIAL MACHINERY & EQUIPMENT - 1.9%
Caterpillar, Inc. 603,400 51,439 14912310
Deere & Co. 298,000 21,121 24419910
Tenneco, Inc. 468,500 22,547 88037010
95,107
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 161,738
MEDIA & LEISURE - 1.2%
LEISURE DURABLES & TOYS - 0.2%
Huffy Corp. 188,100 3,409 44435610
Outboard Marine Corp. 290,700 5,596 69002010
9,005
PUBLISHING - 1.0%
Dow Jones & Co Inc. 474,800 17,033 26056110
MaClean Hunter Ltd. 1,151,200 10,234 55474980
Times Mirror Co., Series A 755,400 23,607 88736010
50,874
TOTAL MEDIA & LEISURE 59,879
NONDURABLES - 3.8%
BEVERAGES - 0.2%
Seagram Co. Ltd. 367,100 10,169 81185010
FOODS - 1.2%
ConAgra, Inc. 1,531,400 40,965 20588710
Dole Food, Inc. 749,200 19,573 25660510
60,538
HOUSEHOLD PRODUCTS - 0.9%
Avon Products, Inc. 628,800 31,361 05430310
Orkla AS:
Class A Free shares 206,500 7,308 39299193
Class B (non-vtg.) 178,450 6,100 39299192
Stanhome, Inc. 21,300 708 85442510
45,477
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
TOBACCO - 1.5%
American Brands, Inc. 115,300 $ 3,963 02470310
Imasco Ltd. 320,300 9,202 45245170
Philip Morris Companies, Inc. 1,084,300 60,586 71815410
RJR Nabisco Holdings Corp. (b) 223,100 1,450 74960K10
75,201
TOTAL NONDURABLES 191,385
RETAIL & WHOLESALE - 4.2%
APPAREL STORES - 1.0%
Charming Shoppes, Inc. 997,500 13,466 16113310
Edison Brothers Stores, Inc. 351,300 11,110 28087510
Limited, Inc. (The) 1,155,000 26,276 53271610
50,852
GENERAL MERCHANDISE STORES - 2.2%
Dayton Hudson Corp. 753,800 53,803 23975310
Dillard Department Stores, Inc. Class A 410,500 16,933 25406310
Federated Department Stores, Inc. (b) 777,600 17,010 31410J10
Penney (J.C.) Co., Inc. 200,000 10,675 70816010
Sears, Roebuck & Co. 150,400 8,178 81238710
106,599
GROCERY STORES - 0.8%
American Stores Co. 190,300 7,874 03009610
Great Atlantic & Pacific Tea Co., Inc. 1,054,300 29,256 39006410
Stop & Shop Companies, Inc. (b) 168,400 2,947 86209910
40,077
RETAIL & WHOLESALE, MISCELLANEOUS - 0.2%
Sotheby's Holdings, Inc. Class A 743,500 10,967 83589810
Wolohan Lumber Co. 95,860 1,486 97786510
12,453
TOTAL RETAIL & WHOLESALE 209,981
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - 0.4%
ADVERTISING - 0.1%
Saatchi & Saatchi Co. (b):
sponsored ADR 182,300 $ 1,413 78514340
PLC Ord. 2,027,600 5,423 78514310
6,836
PRINTING - 0.3%
Harland (John H.) Co. 358,200 8,238 41269310
Nashua Corp. 87,500 2,352 63122610
Standard Register Co. 90,400 1,831 85388710
12,421
TOTAL SERVICES 19,257
TECHNOLOGY - 2.1%
COMPUTERS & OFFICE EQUIPMENT - 0.9%
Comdisco, Inc. 591,500 10,869 20033610
Digital Equipment Corp. (b) 510,000 18,806 25384910
Stratus Computer, Inc. (b) 357,100 9,597 86315510
Tandem Computers, Inc. (b) 539,300 5,595 87537010
44,867
ELECTRONICS - 0.4%
Hitachi, Ltd. 2,641,000 18,597 43357810
PHOTOGRAPHIC EQUIPMENT - 0.8%
Polaroid Corp. 1,147,100 40,579 73109510
TOTAL TECHNOLOGY 104,043
TRANSPORTATION - 2.7%
RAILROADS - 2.7%
Burlington Northern, Inc. 206,000 11,819 12189710
CSX Corp. 339,700 28,195 12640810
Chicago & North Western Holdings Corp. (b) 892,300 21,192 16715510
Illinois Central Corp., Series A 1,045,800 34,642 45184110
Union Pacific Corp. 603,200 38,304 90781810
134,152
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - 4.4%
ELECTRIC UTILITY - 3.9%
Central & South West Corp. 521,700 $ 15,521 15235710
DPL, Inc. 341,250 6,612 23329310
DQE, Inc. 202,100 6,821 23329J10
Entergy Corp. 1,315,100 48,494 29364F10
Houston Industries, Inc. 558,600 25,346 44216110
Illinois Power Co. 1,103,000 24,266 45209210
NIPSCO Industries, Inc. 594,400 18,872 62914010
Niagara Mohawk Power Corp. 113,800 2,333 65352210
PSI Resources, Inc. 209,200 5,387 69363210
PacifiCorp. 707,500 13,443 69511410
Pinnacle West Capital Corp. (b) 251,700 5,317 72348410
Rochester Gas & Electric Corp. 203,100 5,331 77136710
Texas Utilities Co. 360,657 15,418 88284810
Union Electric Co. 122,700 4,739 90654810
197,900
GAS - 0.4%
MCN Corp. 50,000 1,738 55267J10
Pacific Enterprises 153,000 3,921 69423210
UGI Corporation 172,354 3,770 90268110
Westcoat Energy, Inc. 770,000 12,682 95751D10
22,111
TELEPHONE SERVICES - 0.1%
Comsat Corp., Series 1 95,000 3,004 20564D10
TOTAL UTILITIES 223,015
TOTAL COMMON STOCKS
(Cost $3,152,762) 3,445,644
PREFERRED STOCKS - 5.1%
CONVERTIBLE PREFERRED STOCKS - 4.9%
BASIC INDUSTRIES - 0.2%
METALS & MINING - 0.2%
Alumax, Inc., Series A, $4.00 98,166 9,129 02219720
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONVERTIBLE PREFERRED STOCKS - CONTINUED
DURABLES - 0.8%
AUTOS, TIRES, & ACCESSORIES - 0.8%
Chrysler Corp., Series A, $4.625 (e) 45,100 $ 6,697 17119670
Ford Motor Co. (Del.), Series A, $4.20 331,100 33,938 34537020
40,635
ENERGY - 0.9%
OIL & GAS - 0.9%
Occidental Petroleum Corp. $3.875 (e) 305,000 16,318 67459982
Unocal Corp. $3.50 (b)(e) 504,600 29,266 91528920
45,584
FINANCE - 0.9%
BANKS - 0.9%
Citicorp $5.375 (b)(e) 432,300 46,040 17303451
SAVINGS & LOANS - 0.0%
California Federal Bank, Series A, $1.94 19,200 324 13020940
TOTAL FINANCE 46,364
NONDURABLES - 0.1%
TOBACCO - 0.1%
RJR Nabisco Holdings Corp., Series A,
depositary shares representing 1/4 share (b) 830,200 5,708 74960K40
TRANSPORTATION - 2.0%
AIR TRANSPORTATION - 2.0%
AMR Corp. $3.00 (b)(e) 1,110,300 57,458 00176588
UAL, Inc. (cumulative) 6 1/4% (e) 360,100 42,267 90254930
99,725
TOTAL CONVERTIBLE PREFERRED STOCKS 247,145
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONCONVERTIBLE PREFERRED STOCKS - 0.2%
ENERGY - 0.0%
OIL & GAS - 0.0%
Gulf Canada Resources Ltd. sr. Series 1, adj. rate 410,232 $ 1,077
40218L40
Gulf Canada Resources Ltd. (b)(d) 11,768 34 40218L92
1,111
FINANCE - 0.2%
SAVINGS & LOANS - 0.2%
Ahmanson (H.F.) & Co. depositary shares
representing 1/2 share pref. B 9.6% 265,161 7,159 00867730
TOTAL NONCONVERTIBLE PREFERRED STOCKS 8,270
TOTAL PREFERRED STOCKS
(Cost $227,004) 255,415
CORPORATE BONDS - 4.7%
MOODY'S RATINGS (C) PRINCIPAL
(UNAUDITED) AMOUNT (A) (000S)
CONVERTIBLE BONDS - 1.8%
CONGLOMERATES - 0.2%
American Group Ltd.:
euro 6 1/4%, 6/15/03 - $ 2,000 1,830 0235129B
6 1/4%, 6/15/03 (e) - 5,000 4,475 023512AA
Gencorp, Inc. 8%, 8/1/02 Ba3 2,000 2,255 368682AC
8,560
CONSTRUCTION & REAL ESTATE - 0.0%
REAL ESTATE INVESTMENT TRUSTS - 0.0%
Sizeler Property Investors, Inc.
8%, 7/15/03 - 1,000 1,008 830137AA
DURABLES - 0.1%
AUTOS, TIRES, & ACCESSORIES - 0.1%
Magna International, Inc.
10%, 5/1/01 (e) - 1,345 6,819 559222AC
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
CONVERTIBLE BONDS - CONTINUED
ENERGY - 0.1%
OIL & GAS - 0.1%
Alaska Intermediate 8 1/4%,
12/1/95 - $ 300 $ 299 9047889B
USX-Marathon Group
0%, 8/9/05 BB 4,000 1,685 902905AG
1,984
FINANCE - 0.7%
BANKS - 0.6%
Banco Santander euro 9%,
6/24/94 A ESP 310,000 2,535 0595749B
Bank of New York Co., Inc.
7 1/2%, 8/15/01 A2 18,000 27,945 064057AK
30,480
CREDIT & OTHER FINANCE - 0.1%
Lend Lease Finance International Ltd. gtd.
bond 4 3/4%, 6/1/03 (e) Aa 3,550 4,020 526025AA
TOTAL FINANCE 34,500
MEDIA & LEISURE - 0.1%
BROADCASTING - 0.1%
Time Warner, Inc. liquid yield option 0%,
6/22/13 BBB 8,055 3,303 887315AS
PUBLISHING - 0.0%
News Corp./Pearson euro 5%, 3/15/99 - DEM 3,175 2,129 7050999B
TOTAL MEDIA & LEISURE 5,432
RETAIL & WHOLESALE - 0.0%
GENERAL MERCHANDISE STORES - 0.0%
Caseys General Stores Inc. 6 1/4%,
5/1/12 B 700 820 147528AA
SERVICES - 0.2%
Manpower, Inc. 6 1/4%, 10/1/02 (e) Ba 11,540 12,463 56418HAA
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
CONVERTIBLE BONDS - CONTINUED
TECHNOLOGY - 0.1%
PHOTOGRAPHIC EQUIPMENT - 0.1%
Eastman Kodak Co. liquid yield option 0%,
10/15/11 Baa1 $ 17,000 $ 5,971 277461BA
TRANSPORTATION - 0.3%
AIR TRANSPORTATION - 0.3%
Alaska Air Group, Inc. liquid yield option 0%,
4/18/06 B 27,500 10,656 011659AC
TRUCKING & FREIGHT - 0.0%
Builders Transport, Inc. 8%, 8/15/05 B 618 609 120084AA
TOTAL TRANSPORTATION 11,265
TOTAL CONVERTIBLE BONDS 88,822
NONCONVERTIBLE BONDS - 2.9%
BASIC INDUSTRIES - 0.4%
CHEMICALS & PLASTICS - 0.3%
du Pont (E.I.) de Nemours & Co. euro
9%, 7/18/94 Aa 2,000 2,060 263991AG
IMC Fertilizer Group, Inc.:
10 1/8, 6/15/01 B 10,000 10,400 449669AF
9.45%, 12/15/11 B 3,000 2,955 449669AB
15,415
IRON & STEEL - 0.1%
Inland Steel Industries, Inc. 12 3/4%,
12/15/02 Ba 4,000 4,575 457472AB
TOTAL BASIC INDUSTRIES 19,990
CONGLOMERATES - 0.3%
Coltec Industries, Inc. 10 1/4%, 4/1/02 Ba 6,750 7,155 196879AB
Sequa Corp. 10 1/2%, 5/1/98 B 6,300 6,536 817320AC
13,691
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
CONSTRUCTION & REAL ESTATE - 0.2%
BUILDING MATERIALS - 0.2%
USG Corp.:
10 1/4%, 12/15/02 B $ 2,500 $ 2,563 903293AK
10 1/4%, 12/15/02 B 8,000 8,200 903293AL
10,763
DURABLES - 0.0%
AUTOS, TIRES, & ACCESSORIES - 0.0%
Auburn Hills Trust gtd. exchangeable 15 7/8%,
5/1/20 Baa 1,100 1,656 050297AA
ENERGY - 0.3%
ENERGY SERVICES - 0.1%
TransTexas Gas Corp. 10 1/2%, 9/1/00 B 4,000 4,280 893895AA
OIL & GAS - 0.2%
Atlantic Richfield Co. notes 10 3/8%,
7/15/1995 A 500 544 048825AM
BP America, Inc. gtd. 10.15%, 3/15/96 A 1,500 1,662 055625AH
Chevron Corp. Profit Sharing/Savings Plan
Trust Fund gtd. 6.92%, 1/1/96 Aa 2,000 2,045 16675HAD
Mesa Capital Corp. (f):
0%, 6/30/96 - 2,000 1,600 590910AD
secured 0%, 6/30/98 - 7,500 6,450 590910AF
12,301
TOTAL ENERGY 16,581
FINANCE - 1.4%
BANKS - 0.1%
Keycorp 8.55%, 2/25/94 A2 1,000 1,011 49326EAF
Morgan (J.P.) & Co., Inc. 5 3/8%, 1/21/95 Aa 2,000 2,029 6168809D
Republic National Bank New York
5.20%, 1/17/95 Aa 2,000 2,021 760677BE
5,061
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - 0.2%
AT&T Capital Corp. 5.22%, 2/18/94 Aa $ 2,000 $ 2,000 00206J9B
Chrysler Financial Corp. 9 1/2%, 12/15/99 Baa 5,000 5,773 171205CY
Exxon Capital Corp. gtd. 7 3/4%, 2/14/96 Aaa 2,000 2,127 302289AJ
9,900
INSURANCE - 1.0%
American Reinsurance 10 7/8%, 9/15/04 Baa 22,000 26,107 029163AA
ICH Corp. 9 3/4%, 8/31/94 B 2,500 2,556 449264AA
ITT Hartford Group, Inc. 7 1/4%, 12/1/96 A 1,500 1,585 45068HAB
Phoenix Reinsurance Corp. 9 3/4%, 08/15/03 Ba 5,300 5,565 719123AA
Reliance Group 9%, 11/15/00 Ba 13,900 14,039 759464AG
49,852
SAVINGS & LOANS - 0.1%
Coast Savings Financial, Inc. 10%, 4/1/00 B 4,000 4,210 19039MAA
TOTAL FINANCE 69,023
MEDIA & LEISURE - 0.0%
PUBLISHING - 0.0%
News America Holdings, Inc. 12%,
12/15/01 Ba 950 1,148 652478AB
NONDURABLES - 0.0%
BEVERAGES - 0.0%
Coca-Cola Company (The) 12 1/8%,
6/15/95 Aa 1,000 1,064 191216AB
TRANSPORTATION - 0.1%
AIR TRANSPORTATION - 0.1%
US Air, Inc. 9 5/8%, 9/1/94 Ba 4,000 4,030 91154RAB
UTILITIES - 0.2%
ELECTRIC UTILITY - 0.2%
Carolina Power & Light Co. 5.20%, 1/1/95 A 2,000 2,022 144141BU
Long Island Lighting Co. 10 1/4%, 6/15/94 Baa 2,000 2,060 542671CB
Ontario Hydro gtd. 9 1/4%, 5/1/95 Aa 1,000 1,066 683078DM
CORPORATE BONDS - CONTINUED
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
(UNAUDITED) AMOUNT (A) (000S) (000S)
NONCONVERTIBLE BONDS - CONTINUED
UTILITIES - CONTINUED
ELECTRIC UTILITY - CONTINUED
Philadelphia Electric Co. 1st & ref. mtg.
4 1/2%, 5/1/94 Baa $ 2,250 $ 2,250 717537AN
Southern California Edison Co. 5.55%, 2/1/95 Aa 2,000 2,030 842400CW
9,428
TOTAL NONCONVERTIBLE BONDS 147,374
TOTAL CORPORATE BONDS
(Cost $225,352) 236,196
U.S. TREASURY OBLIGATIONS - 8.1%
Bills, Yields at date of purchase,
3.13% - 3.15%, 2/4/94 to 2/24/94 400,000 396,878 99399H5Q
8 7/8%, 2/15/94 Aaa 50 51 912827WY
9 1/2%, 10/15/94 Aaa 3,000 3,149 912827VK
9 1/4%, 1/15/96 Aaa 2,000 2,201 912827XB
7 7/8% 7/31/96 Aaa 2,000 2,168 912827B7
TOTAL U.S. TREASURY OBLIGATIONS
(Cost $404,712) 404,447
FOREIGN GOVERNMENT OBLIGATIONS - 1.4%
Canadian Government:
7 1/2%, 3/6/94 Aaa CAD 1,800 1,359 136992JQ
8 1/4%, 3/1/97 Aaa CAD 1,200 969 136992JW
Mexican Government:
Adjustabono 7 3/4%, 1/20/94 - MXN 6,713 3,071 597998SK
Cetes 0%, 1/6/94 to 4/7/94 - MXN 201,894 63,319 597998TC
TOTAL FOREIGN GOVERNMENT OBLIGATIONS
(Cost $67,653) 68,718
COMMERCIAL PAPER - 0.3%
Bancomer SNC 0%, 2/3/94 MXN 32,319 10,142 05999KBE
Nacional Financiera SNC 0%, 6/2/94 MXN 21,973 6,629 66299CAH
TOTAL COMMERCIAL PAPER
(Cost $16,669) 16,771
REPURCHASE AGREEMENT - 11.7%
MATURITY VALUE (NOTE 1)
AMOUNT (000S)
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.24%
dated 11/30/93 due 12/1/93 $585,740 $ 585,687
TOTAL INVESTMENTS - 100.0%
(Cost $4,679,839) $ 5,012,878
CURRENCY TYPE ABBREVIATIONS
CAD - Canadian dollar
MXN - Mexican peso
ESP - Spanish peseta
DEM - German Deutsche mark
LEGEND
1. Principal amount is stated in United States dollars unless otherwise
noted.
2. Non-income producing
3. Standard & Poor's Corporation credit ratings are used in the absence
of a rating by Moody's Investors Service, Inc.
4. Restricted securities - investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on this holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Gulf Canada
Resources, Ltd. 11/3/93 $ 29,000
5. 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 $225,823,000 or 4.7% of net
assets.
(f) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
OTHER INFORMATION
Distribution of investments by country, as a percentage of total value of
investments in securities, is as follows:
United States 81.0%
United Kingdom 5.9
Canada 3.5
Netherlands 2.7
Mexico 1.7
France 1.1
Others (individually less than 1%) 4.1
TOTAL 100.0%
INCOME TAX INFORMATION
At November 30, 1993, the aggregate cost of investment securities for
income tax purposes was $4,680,451,000. Net unrealized appreciation
aggregated $332,427,000, of which $435,609,000 related to appreciated
investment securities and $103,182,000 related to depreciated investment
securities.
The fund hereby designates $25,352,000 as a capital gain dividend for the
purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) NOVEMBER 30, 1993
ASSETS
Investment in securities, at value (including repurchase $ 5,012,878
agreements of $585,687) (cost $4,679,839) (Notes 1
and 2) - See accompanying schedule
Receivable for investments sold 60,892
Receivable for fund shares sold 17,092
Dividends receivable 11,768
Interest receivable 4,566
Other receivables 19
TOTAL ASSETS 5,107,215
LIABILITIES
Payable for investments purchased $ 277,725
Payable for fund shares redeemed 10,512
Accrued management fee 2,094
Other payables and accrued expenses 1,990
TOTAL LIABILITIES 292,321
NET ASSETS $ 4,814,894
Net Assets consist of:
Paid in capital $ 4,227,817
Undistributed net investment income 37,905
Accumulated undistributed net realized gain (loss) on 216,133
investments
Net unrealized appreciation (depreciation) on investment 333,039
securities
NET ASSETS, for 255,388 shares outstanding $ 4,814,894
NET ASSET VALUE, offering price and redemption price per $18.85
share ($4,814,894 (divided by) 255,388 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEAR ENDED NOVEMBER 30, 1993
INVESTMENT INCOME $ 86,739
Dividends
Interest 40,119
TOTAL INCOME 126,858
EXPENSES
Management fee (Note 4) $ 18,696
Transfer agent fees (Note 4) 10,129
Accounting fees and expenses (Note 4) 762
Non-interested trustees' compensation 21
Custodian fees and expenses 363
Registration fees 1,041
Audit 96
Legal 32
Miscellaneous 335
Total expenses before reductions 31,475
Expense reductions (Note 5) (108) 31,367
NET INVESTMENT INCOME 95,491
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 207,418
(NOTES 1 AND 3)
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on 234,493
investment securities
NET GAIN (LOSS) 441,911
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 537,402
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS YEARS ENDED NOVEMBER 30,
1993 1992
INCREASE (DECREASE) IN NET ASSETS
Operations $ 95,491 $ 32,277
Net investment income
Net realized gain (loss) on investments 207,418 53,780
Change in net unrealized appreciation (depreciation) 234,493 94,616
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 537,402 180,673
FROM OPERATIONS
Distributions to shareholders from: (71,676) (19,098)
Net investment income
Net realized gain (45,921) (3,099)
Share transactions 3,502,848 1,977,114
Net proceeds from sales of shares
Reinvestment of distributions from: 69,446 18,507
Net investment income
Net realized gain 45,020 3,018
Cost of shares redeemed (1,164,550) (506,981)
Net increase (decrease) in net assets resulting from 2,452,764 1,491,658
share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 2,872,569 1,650,134
NET ASSETS
Beginning of period 1,942,325 292,191
End of period (including undistributed net investment $ 4,814,894 $ 1,942,325
income of $37,905 and $14,090, respectively)
OTHER INFORMATION
Shares
Sold 196,097 127,494
Issued in reinvestment of distributions from: 3,936 1,210
Net investment income
Net realized gain 2,746 216
Redeemed (64,583) (32,792)
Net increase (decrease) 138,196 96,128
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
YEARS ENDED NOVEMBER 30, AUGUST 21, 1990
(COMMENCEMENT
OF OPERATIONS) TO
NOVEMBER 30,
1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 16.57 $ 13.87 $ 10.18 $ 10.00
Income from Investment Operations
Net investment income .44 .40 .45(dagger)(dagger) .03
Net realized and unrealized gain 2.62 2.75 3.76 .15
(loss) on investments
Total from investment operations 3.06 3.15 4.21 .18
Less Distributions
From net investment income (.41) (.32) (.44) -
From net realized gain (.37) (.13) (.08) -
Total distributions (.78) (.45) (.52) -
Net asset value, end of period $ 18.85 $ 16.57 $ 13.87 $ 10.18
TOTAL RETURN (dagger) 19.08 23.18 42.01% 1.80%(double dagger)
% %
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (in $ 4,815 $ 1,942 $ 292 $ 3
millions)
Ratio of expenses to average net .88 1.01 1.52% 2.50%*(double dagger)
assets % %
Ratio of expenses to average net .89 1.01 1.52% 2.50%*
assets before expense reductions % %
(diamond)
Ratio of net investment income to 2.69 3.09 3.83% 3.89%*
average net assets % %
Portfolio turnover rate 55 89 206% 167%*
% %
</TABLE>
* ANNUALIZED
(double dagger) DURING THE PERIOD AUGUST 21, 1990 (COMMENCEMENT OF
OPERATIONS) TO NOVEMBER 30, 1990,
EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. TOTAL
RETURNS WOULD HAVE BEEN LOWER HAD THIS LIMITATION NOT BEEN IN EFFECT.
(dagger) TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT
ANNUALIZED.
(dagger)(dagger) NET INVESTMENT INCOME PER SHARE REFLECTS $.12 PER SHARE
RELATING TO A NONRECURRING INITIATIVE TO INVEST IN DIVIDEND INCOME
PRODUCING SECURITIES WHICH WAS IN EFFECT FOR A PORTION OF 1991.
(diamond) SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1993
1. SIGNIFICANT ACCOUNTING
POLICIES.
Fidelity Equity-Income II Fund (the fund) is a fund of Fidelity Financial
Trust (the trust) and is authorized to issue an unlimited number of shares.
The trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company
organized as a Massachusetts business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
are valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities, other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the current exchange rate. Purchases and sales of securities,
income receipts and expense payments are translated into U.S. dollars at
the exchange rate on the dates of the transactions.
It is not practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Dividend and
interest income is recorded net of foreign taxes where recovery of such
taxes is not assured.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The fund may enter into forward foreign
currency contracts. These contracts involve market risk in excess of the
amount reflected in the fund's Statement of Assets and Liabilities. The
face or contract amount in U.S. dollars reflects the total exposure the
fund has in that particular currency contract. The U.S. dollar value of
forward foreign currency contracts is determined using forward currency
exchange rates supplied by a quotation service. Losses may arise due to
changes in the value of the foreign currency or if the counterparty does
not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission (SEC), the fund, along with other
registered investment companies having management contracts with FMR, may
transfer uninvested cash balances into a joint trading account. These
balances are invested in one or more repurchase agreements that are
collateralized by U.S. Treasury or Federal Agency obligations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations and
expense, and prompt sale at an acceptable price may be difficult. At the
end of the period, restricted securities (excluding 144A issues) amounted
to $34,000 or 0.0% of net assets.
3. PURCHASES AND SALES OF
INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $3,531,065,000 and $1,621,122,000, respectively, of which sales
of U.S. government and government agency obligations aggregated
$36,389,000.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates ranging from
.31% to .52% and is based on the monthly average net assets of all the
mutual funds advised by FMR. The annual individual fund fee rate is .20%.
For the period, the management fee was equivalent to an annual rate of .53%
of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200% FMR has voluntarily agreed to implement this
new group fee rate schedule as it results in the same or a lower management
fee.
DISTRIBUTION AND SERVICE PLAN. Pursuant to the Distribution and Service
Plan (the Plan), and in accordance with Rule 12b-1 of the 1940 Act, FMR or
the fund's distributor, Fidelity Distributors Corporation (FDC), an
affiliate of FMR, may use their resources to pay administrative and
promotional expenses related to the sale of the fund's shares. Subject to
the approval of the Board of Trustees, the Plan also authorizes payments to
third parties that assist in the sale of the fund's shares or render
shareholder support services. FMR or FDC has informed the fund that
payments made to third parties under the Plan amounted to $23,000 for the
period.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $1,812,000 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
$108,000 under this arrangement.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Financial Trust and the Shareholders of
Fidelity Equity-Income II Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments (except for Moody's and Standard
& Poor's ratings), 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 Equity-Income II
Fund (a fund of Fidelity Financial Trust) at November 30, 1993, the results
of its operations for the year then ended, 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 Equity-Income II 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 owned at November 30, 1993 by
correspondence with the custodian and brokers and the application of
alternative auditing procedures where confirmations from brokers were not
received, provide a reasonable basis for the opinion expressed above.
PRICE WATERHOUSE
Boston, Massachusetts
January 6, 1994
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
1. For quotes on funds you own.
2. For an individual fund quote.
3. For the ten most frequently
requested Fidelity fund quotes.
4. For quotes on Fidelity Select
Portfolios.(Registered trademark)
5. To change your Personal
Identification Number (PIN).
6. To speak with a Fidelity
representative.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
1. For balances on funds you own.
2. For your most recent fund activity
(purchases, redemptions, and
dividends).
3. To change your Personal
Identification Number (PIN).
4. To speak with a Fidelity
representative.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
TO VISIT FIDELITY
For directions and hours,
please call 1-800-544-9797.
ARIZONA
7373 N. Scottsdale Road
Scottsdale, AZ
CALIFORNIA
851 Hamilton Avenue
Campbell, CA
527 North Brand Boulevard
Glendale, CA
19100 Von Karman Avenue
Irvine, CA
10100 Santa Monica Blvd.
Los Angeles, CA
811 Wilshire Boulevard
Los Angeles, CA
251 University Avenue
Palo Alto, CA
1760 Challenge Way
Sacramento, CA
7676 Hazard Center Drive
San Diego, CA
455 Market Street
San Francisco, CA
1400 Civic Drive
Walnut Creek, CA
COLORADO
1625 Broadway
Denver, CO
CONNECTICUT
185 Asylum Street
Hartford, CT
265 Church Street
New Haven, CT
300 Atlantic Street
Stamford, CT
DELAWARE
222 Delaware Avenue
Wilmington, DE
FLORIDA
4400 N. Federal Highway
Boca Raton, FL
2249 Galiano Street
Coral Gables, FL
4090 N. Ocean Boulevard
Ft. Lauderdale, FL
4001 Tamiami Trail, North
Naples, FL
32 West Central Boulevard
Orlando, FL
2401 PGA Boulevard
Palm Beach Gardens, FL
8065 Beneva Road
Sarasota, FL
2000 66th Street, North
St. Petersburg, FL
GEORGIA
3525 Piedmont Road, N.E.
Atlanta, GA
1000 Abernathy Road
Atlanta, GA
HAWAII
700 Bishop Street
Honolulu, HI
ILLINOIS
215 East Erie Street
Chicago, IL
One North Franklin
Chicago, IL
540 Lake Cook Road
Deerfield, IL
1415 West 22nd Street
Oak Brook, IL
1700 East Golf Road
Schaumburg, IL
LOUISIANA
201 St. Charles Avenue
New Orleans, LA
MAINE
3 Canal Plaza
Portland, ME
MARYLAND
1 West Pennsylvania Ave.
Towson, MD
7401 Wisconsin Avenue
Bethesda, MD
MASSACHUSETTS
470 Boylston Street
Boston, MA
21 Congress Street
Boston, MA
25 State Street
Boston, MA
300 Granite Street
Braintree, MA
101 Cambridge Street
Burlington, MA
416 Belmont Street
Worcester, MA
MICHIGAN
280 North Woodward Ave.
Birmingham, MI
26955 Northwestern Hwy.
Southfield, MI
MINNESOTA
38 South Sixth Street
Minneapolis, MN
MISSOURI
700 West 47th Street
Kansas City, MO
200 North Broadway
St. Louis, MO
NEW JERSEY
60B South Street
Morristown, NJ
501 Route 17, South
Paramus, NJ
505 Millburn Avenue
Short Hills, NJ
NEW YORK
1050 Franklin Avenue
Garden City, NY
999 Walt Whitman Road
Melville, L.I., NY
71 Broadway
New York, NY
350 Park Avenue
New York, NY
10 Bank Street
White Plains, NY
NORTH CAROLINA
2200 West Main Street
Durham, NC
OHIO
600 Vine Street
Cincinnati, OH
1903 East Ninth Street
Cleveland, OH
28699 Chagrin Boulevard
Woodmere Village, OH
OREGON
121 S.W. Morrison Street
Portland, OR
PENNSYLVANIA
1735 Market Street
Philadelphia, PA
439 Fifth Avenue
Pittsburgh, PA
TENNESSEE
5100 Poplar Avenue
Memphis, TN
TEXAS
10000 Research Boulevard
Austin, TX
7001 Preston Road
Dallas, TX
1155 Dairy Ashford
Houston, TX
1010 Lamar Street
Houston, TX
2701 Drexel Drive
Houston, TX
400 East Las Colinas Blvd.
Irving, TX
14100 San Pedro
San Antonio, TX
UTAH
175 East 400 South Street
Salt Lake City, UT
VERMONT
199 Main Street
Burlington, VT
VIRGINIA
8300 Boone Boulevard
Vienna, VA
WASHINGTON
411 108th Avenue, N.E.
Bellevue, WA
1001 Fourth Avenue
Seattle, WA
WASHINGTON, DC
1775 K Street, N.W.
Washington, DC
WISCONSIN
222 East Wisconsin Avenue
Milwaukee, WI
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Brian S. Posner, Vice President
Gary L. French, Treasurer
John H. Costello, Assistant Treasurer
Arthur S. Loring, Secretary
Robert H. Morrison, Manager,
Security Transactions
BOARD OF TRUSTEES
J. Gary Burkhead
Ralph F. Cox *
Phyllis Burke Davis *
Richard J. Flynn *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Edward H. Malone *
Marvin L. Mann *
Gerald C. McDonough *
Thomas R. Williams *
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Chase Manhattan Bank, N.A.
New York, NY
GROWTH AND INCOME FUNDS
Balanced Fund
Convertible Securities Fund
Equity-Income Fund
Equity-Income II Fund
Fidelity Fund
Global Balanced
Growth & Income Portfolio
Market Index Fund
Puritan Fund
Real Estate Portfolio
Utilities Income Fund
THE FIDELITY
TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
