FIDELITY
REAL ESTATE HIGH INCOME
FUND
ANNUAL REPORT
NOVEMBER 30, 1998
(2_FIDELITY_LOGOS)(registered trademark)
REHI-ANN-0199 69306
CONTENTS
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PERFORMANCE 3 How the fund has done over time.
FUND TALK 5 The manager's review of fund performance, strategy
and outlook.
INVESTMENTS 6 A complete list of the fund's investments with their
market values.
FINANCIAL STATEMENTS 10 Statements of assets and liabilities, operations, and changes in
net assets, as well as financial highlights.
NOTES 12 Notes to the financial statements.
REPORT OF INDEPENDENT ACCOUNTANTS 14 The auditors' opinion.
DISTRIBUTIONS 15
PROXY VOTING RESULTS 16
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Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
THIS REPORT 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, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND
ARE SUBJECT TO INVESTMENT RISKS, INCLUDING
POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON THE FUND, INCLUDING CHARGES AND EXPENSES, CALL
JEFF GANDEL AT 617-563-6414 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
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 $100,000
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 NOVEMBER 30, 1998 PAST 1 LIFE OF
YEAR FUND
Fidelity Real Estate High Income -1.35% 77.87%
ML High Yield Master 4.61% 55.47%
High Current Yield Funds Average 0.91% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year or since the fund
started on January 5, 1995. 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 return to the
performance of the Merrill Lynch High Yield Master Index - a market
value-weighted index of all domestic and yankee high-yield bonds.
Issues included in the index have maturities of one year or more and
have a credit rating lower than BBB-/Baa3, but are not in default. To
measure how the fund's performance stacked up against its peers, you
can compare it to the high current yield funds average, which reflects
the performance of mutual funds with similar objectives tracked by
Lipper Analytical Services, Inc. The past one year average represents
a peer group of 235 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and exclude the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED NOVEMBER 30, 1998 PAST 1 LIFE OF
YEAR FUND
Fidelity Real Estate High Income -1.35% 15.89%
ML High Yield Master 4.61% 11.97%
High Current Yield Funds Average 0.91% n/a
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.)
$100,000 OVER LIFE OF FUND
Real Estate High Inc ML High Yield Master
00671 ML002
1995/01/05 100000.00 100000.00
1995/01/31 100918.56 101255.38
1995/02/28 104093.12 104414.67
1995/03/31 105430.21 105867.78
1995/04/30 107058.44 108346.52
1995/05/31 111364.63 111731.51
1995/06/30 112854.47 112584.91
1995/07/31 113387.98 113872.01
1995/08/31 115807.97 114563.12
1995/09/30 117769.89 115873.84
1995/10/31 118684.60 116695.22
1995/11/30 120329.56 117834.33
1995/12/31 121432.24 119725.79
1996/01/31 122861.39 121616.64
1996/02/29 122234.55 121799.75
1996/03/31 122094.38 121468.97
1996/04/30 123181.86 121523.99
1996/05/31 123858.23 122400.40
1996/06/30 126275.58 123135.66
1996/07/31 127320.62 123971.65
1996/08/31 127913.11 125251.90
1996/09/30 132066.15 127939.25
1996/10/31 138261.78 129341.38
1996/11/30 142842.15 131956.29
1996/12/31 143581.99 132971.66
1997/01/31 147776.98 133993.56
1997/02/28 151913.15 135873.22
1997/03/31 152800.96 134364.15
1997/04/30 158792.49 135893.43
1997/05/31 160484.33 138597.25
1997/06/30 163908.63 140742.72
1997/07/31 170965.79 144120.25
1997/08/31 170997.49 143795.99
1997/09/30 176137.46 146251.11
1997/10/31 177153.54 147221.71
1997/11/30 180300.26 148540.21
1997/12/31 182230.32 150025.34
1998/01/31 184570.38 152223.03
1998/02/28 185221.01 152888.03
1998/03/31 188396.33 154205.59
1998/04/30 190199.08 154938.05
1998/05/31 191620.34 155940.37
1998/06/30 190723.90 156789.42
1998/07/31 190878.81 157683.54
1998/08/31 186214.13 150879.36
1998/09/30 183925.92 151180.30
1998/10/31 175782.23 148658.35
1998/11/30 177871.78 155469.06
IMATRL PRASUN SHR__CHT 19981130 19981222 090456 R00000000000050
$100,000 OVER LIFE OF FUND: Let's say hypothetically that $100,000 was
invested in Fidelity Real Estate High Income Fund on January 5, 1995,
when the fund started. As the chart shows, by November 30, 1998, the
value of the investment would have grown to $177,872 - a 77.87%
increase on the initial investment. For comparison, look at how the
Merrill Lynch High Yield Master Index did over the same period. With
dividends reinvested, the same $100,000 investment would have grown to
$155,469 - a 55.47% increase.
TOTAL RETURN COMPONENTS
YEARS ENDED JANUARY 5, 1995
NOVEMBER 30, (COMMENCEMENT
OF OPERATIONS) TO
NOVEMBER 30,
1998 1997 1996 1995
Dividend returns 9.74% 15.17% 9.59% 9.93%
Capital returns -11.09% 11.05% 9.12% 10.40%
Total returns -1.35% 26.22% 18.71% 20.33%
TOTAL RETURN COMPONENTS include both dividend returns and capital
returns. A dividend return reflects the actual dividends paid by the
fund. A capital return reflects both the amount paid by the fund to
shareholders as capital gain distributions and changes in the fund's
share price. Both returns assume the dividends or capital gains, if
any, paid by the fund are reinvested.
DIVIDENDS
PERIODS ENDED NOVEMBER 30, 1998 PAST 1 PAST 6 PAST 1
MONTH MONTHS YEAR
Dividends per share 8.57(cents) 51.41(cents) 111.74(cents)
Annualized dividend rate 10.76% 9.83% 10.36%
30-day annualized yield 12.57% - -
DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of $9.69
over the past one month, $10.43 over the past six months and $10.79
over the past one year, you can compare the fund's income over these
three periods. The 30-day annualized YIELD is a standard formula for
all funds based on the yields of the bonds in the fund, averaged over
the past 30 days. This figure shows you the yield characteristics of
the fund's investments at the end of the period. It also helps you
compare funds from different companies on an equal basis.
(CHECKMARK)
UNDERSTANDING PERFORMANCE
HOW A FUND DID YESTERDAY IS NO GUARANTEE OF
HOW IT WILL DO TOMORROW. BOND PRICES, FOR
EXAMPLE, GENERALLY MOVE IN THE OPPOSITE
DIRECTION OF INTEREST RATES. IN TURN, THE SHARE
PRICE, RETURN AND YIELD OF A FUND THAT INVESTS IN
BONDS WILL VARY. THAT MEANS IF YOU SELL YOUR
SHARES DURING A MARKET DOWNTURN, YOU MIGHT
LOSE MONEY. BUT IF YOU CAN RIDE OUT THE MARKET'S
UPS AND DOWNS, YOU MAY HAVE A GAIN.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Mark Snyderman, Portfolio Manager of Fidelity Real
Estate High Income Fund
Q. HOW DID THE FUND PERFORM, MARK?
A. The second half of the year was difficult for the fund. For the 12
months that ended November 30, 1998, the fund returned -1.35%. In
comparison, the Merrill Lynch High Yield Master Index - a broad
measure of the high-yield bond market - returned 4.61%, while the high
current yield funds average tracked by Lipper Analytical Services
returned 0.91% during the same period.
Q. WHY DID THE FUND'S PERFORMANCE TRAIL THAT OF THE INDEX AND THE
AVERAGE?
A. Although the fund measures performance against the Merrill Lynch
High Yield index and the Lipper high current yield funds average,
these benchmarks represent the broader high-yield bond market. It is
important to keep in mind that Real Estate High Income Fund focuses on
a small slice of the high-yield market, specifically, real estate
securities. Unfortunately, this segment of the bond market
underperformed most others during the period. Back in August and
September, we witnessed an extreme flight to higher-rated bonds as
investors became increasingly concerned about the state of the global
financial system. As a result, yield spreads in the high-yield bond
market widened significantly in the second half of the year. This
trend was especially pronounced in the commercial mortgage-backed
security (CMBS) sector of the bond market, where the fund primarily
invests. Performance continued to lag the index and the average as
high-yield corporate bonds began to rally late in the period following
three interest-rate cuts, while the high-yield CMBS market did not.
Q. CAN YOU TELL US A BIT MORE ABOUT THE INVESTMENT ENVIRONMENT FOR
COMMERCIAL MORTGAGE-BACKED SECURITIES? WHAT CAUSED THESE SECURITIES TO
UNDERPERFORM?
A. There was a supply and demand imbalance in the CMBS market in the
second half of the period. Specifically, demand for CMBS dried up over
the last six months, resulting in significant widening of yield
spreads and declining prices - which move in the opposite direction of
yields. Part of the decline in demand was caused by events that were
unexpected and unique to the high-yield mortgage bond market. About
half of the buyers in the market disappeared in late September and
early October and became sellers. Crimmi Mae, one of the biggest
buyers of these securities, declared bankruptcy. Further compounding
the problem of weak demand, a number of other market participants
experienced margin calls due to their high debt levels, which put
additional selling pressure on mortgage securities.
Q. DID YOU MAKE ANY SIGNIFICANT CHANGES TO THE FUND OR YOUR STRATEGY
AS A RESULT OF THIS DIFFICULT ENVIRONMENT?
A. Not really. The underlying credit quality of the mortgage
securities in the portfolio are fine, and the properties' cash flows
were in good shape. While these bonds declined in value due to the
demand shortage and overall negative environment, I'm comfortable with
the fund's holdings and asset allocation. The recent demand shortfall
seems like a one-time event and short-term detractor from performance.
Nevertheless, before the drastic spread widening occurred, we weren't
buying many securities in the higher-rated BB CMBS market because
prices looked high. However, the dramatic sell-off in this sector of
the market has created opportunities among higher-rated securities.
Toward the end of the period, we were buying more BB-rated commercial
mortgage securities because the yield spreads were wide enough
relative to comparable corporate bonds that these mortgage securities
looked attractively valued.
Q. WHICH HOLDINGS PERFORMED WELL AND WHICH WERE DETRACTORS?
A. While the majority of the fund's holdings declined during the
period, commercial mortgage-backed securities issued by LB 91-4 and
Penn Mutual held up well. In both cases, the credit quality of the
underlying mortgages continued to perform better than the market
anticipated. On the negative side, the fund was particularly hurt by
investments in a few real estate investment trust (REIT) companies,
such as bonds issued by Ocwen Asset and the stock of Clarion
Commercial Holdings. The credit of Ocwen was hurt by high levels of
debt and liquidity problems. While the underlying assets and mortgages
at Clarion were in good shape, the company was hurt by the general
downturn in the REIT market and by being forced to sell CMBS assets at
lower prices.
Q. WHAT'S YOUR OUTLOOK, MARK?
A. Yield spreads are at levels we haven't seen in a long time,
creating opportunities for the fund. Looking at high-yield corporate
bonds of comparable risk to mortgage securities, it seems that the
high-yield CMBS market has been oversold relative to other sectors. As
I mentioned earlier, we experienced a very peculiar situation where
half of the buyers were over-leveraged with debt, causing a huge
dislocation in the market. When you lose significant demand for bonds,
yield spreads widen dramatically and it takes some time for buyers to
gear up and re-enter the market. However, we are beginning to see
signs that buyers are returning. If this trend continues, we could see
an increase in demand, tighter yield spreads and higher prices.
Clearly, all of these factors would be positive for the fund's
performance.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS.
(CHECKMARK)
FUND FACTS
GOAL: TO PROVIDE HIGH CURRENT INCOME BY INVESTING
PRIMARILY IN REAL ESTATE-RELATED INSTRUMENTS, WITH AN
EMPHASIS ON LOWER-QUALITY ISSUES
START DATE: JANUARY 5, 1995
SIZE: AS OF NOVEMBER 30, 1998, MORE THAN
$73 MILLION
MANAGER: MARK SNYDERMAN, SINCE INCEPTION;
JOINED FIDELITY IN 1994
INVESTMENTS NOVEMBER 30, 1998
SHOWING PERCENTAGE OF TOTAL VALUE OF INVESTMENT IN SECURITIES
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CORPORATE BONDS - 11.0%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL VALUE
AMOUNT (NOTE 1)
CONVERTIBLE BONDS - 4.4%
CONSTRUCTION & REAL ESTATE - 2.7%
REAL ESTATE INVESTMENT TRUSTS - 2.7%
Rockefeller Center Properties, Inc. 0% 12/31/00 - $ 2,500,000 $ 1,925,000
MEDIA & LEISURE - 1.7%
LODGING & GAMING - 1.7%
ShoLodge, Inc. 7.5% 5/1/04 B2 2,102,000 1,261,200
TOTAL CONVERTIBLE BONDS 3,186,200
NONCONVERTIBLE BONDS - 6.6%
CONSTRUCTION & REAL ESTATE - 5.0%
REAL ESTATE - 2.4%
LNR Property Corp. 9.375% 3/15/08 B1 1,825,000 1,733,750
REAL ESTATE INVESTMENT TRUSTS - 2.6%
Ocwen Asset Investment Corp. 11.5% 7/1/05 (c) - 2,525,000 1,893,750
TOTAL CONSTRUCTION & REAL ESTATE 3,627,500
FINANCE - 1.0%
CREDIT & OTHER FINANCE - 0.7%
Emergent Group, Inc. 10.75% 9/15/04 Caa2 1,200,000 480,000
SAVINGS & LOANS - 0.3%
Wilshire Financial Services Group, Inc. 13% 1/1/04 - 2,000,000 260,000
TOTAL FINANCE 740,000
MEDIA & LEISURE - 0.4%
LODGING & GAMING - 0.4%
ShoLodge, Inc. 9.75% 11/1/06 B1 420,000 268,800
SERVICES - 0.2%
AMRESCO, Inc. 9.875% 3/15/05 Caa3 180,000 129,600
TOTAL NONCONVERTIBLE BONDS 4,765,900
TOTAL CORPORATE BONDS 7,952,100
(Cost $11,664,636)
ASSET-BACKED SECURITIES - 1.9%
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL VALUE
AMOUNT (NOTE 1)
Saxon Asset Securities Trust:
8% 12/25/27 (c) BB $ 1,000,000 $ 871,680
8.6% 12/25/27 (c) B 863,000 531,953
TOTAL ASSET-BACKED SECURITIES 1,403,633
(Cost $1,435,139)
COLLATERALIZED MORTGAGE OBLIGATIONS - 2.3%
PRIVATE SPONSOR - 2.3%
Credit-Based Asset Servicing and Securitization
LLC Series 1997-2:
Class 2-B, 0% 12/29/25 (FRN)(c)(d) Ba3 894,301 316,918
Class 2-C, 0% 12/29/25 (FRN)(c)(d) B3 2,550,000 312,375
DLJ Mortgage Acceptance Corp. Series 1996-TD:
Class C, 6.8799% 9/29/23 (c)(d) B3 655,276 528,214
Class D, 6.6697% 9/29/23 (c)(d) - 1,032,497 188,431
GE Capital Mortgage Services, Inc. Series 1998-7:
Class B4, 6.5% 4/25/13 (c) - 337,134 238,627
Class B5, 6.5% 4/25/13 (c) - 252,853 58,156
TOTAL COLLATERALIZED MORTGAGE OBLIGATIONS 1,642,721
(Cost $2,347,619)
COMMERCIAL MORTGAGE SECURITIES - 67.8%
ACP Mortgage LP floater Series F, 7.3892% 2/28/28
(c)(d) B 1,578,295 1,249,852
Atherton Franchisee Loan Funding LLP Series 1998-A:
Class E, 8.25% 5/15/20 (c) BB 1,500,000 1,180,313
Class F, 7.44% 8/15/19 (c) B 2,000,000 1,250,000
Bankers Trust Remic Trust 1988-1 Series 1998-S1A:
Class G, 8.4431% 11/28/02 (c)(d) Ba2 930,000 808,664
Class H, 0% B3 1,398,154 1,094,929
11/28/02 (FRN)(c)(d)
COMMERCIAL MORTGAGE SECURITIES - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL VALUE
AMOUNT (NOTE 1)
Berkeley Federal Bank & Trust FSB Series 1994 Class 1-B
7.6626% 8/1/24 (c)(d) - $ 1,400,000 $ 1,039,500
BKB Commercial Mortgage Trust Series 1997-C1:
Class F, 8.7147% 4/26/04 (c)(d) B 2,276,000 2,101,388
Class G, 8.7147% 4/27/09 (c)(d) CCC 2,141,500 1,370,560
Class H, 8.94% 10/25/22 (c)(d) - 760,975 152,195
Blaylock Mortgage Capital Corp. Series 1997-A:
Class B5, 6.425% 10/15/03 (c) B- 110,000 73,923
Class B6, 6.425% 10/15/03 (c) CCC 110,000 48,950
Class B7, 6.425% 10/15/03 (c) - 147,000 44,697
CBM Funding Corp. sequential pay Series 1996-1
Class B, 7.48% 2/1/08 A 1,000,000 1,053,594
CS First Boston Mortgage Securities Corp. Series
1997-SPICE Class G, 7.768% 8/20/36 (c) - 1,351,409 1,046,920
DLJ Mortgage Acceptance Corp.:
Series 1994-MF11:
Class B2, 8.1% 6/18/04 (c) Ba2 1,000,000 832,970
Class B3, 8.1% 6/18/04 (c) B2 1,342,000 1,075,908
Series 1994-MF4 Class C, 8.5% 4/18/01 (c) - 460,000 344,856
First Chicago/Lennar Trust I Series 1997-CHL1
Class E, 8.1117% 4/1/39 (d) - 2,800,000 2,143,750
FMAC Loan Receivables Trust:
Series 1997-A Class F, 8.1062% 4/15/19 (c)(d) - 1,396,868 948,997
Series 1997-B:
Class E, 7.8912% 9/15/19 (c)(d) - 1,000,000 750,938
Class F, 7.89% 9/15/19 (c)(d) - 2,190,865 1,399,415
Series 1997-C Class F, 8.2652% 12/15/19 (c)(d) - 1,129,582 741,994
Series 1998-A Class E, 7.9263% 9/15/20 (c)(d) BB 1,500,000 1,003,125
GAFCO Franchisee Loan Trust Series 1998-1 Class D,
14.5% 6/1/16 (c)(d) - 2,700,000 2,085,737
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL VALUE
AMOUNT (NOTE 1)
Kidder Peabody Acceptance Corp. I:
Series 1993-M3 Class F, 6.5% 11/25/25 (c) B2 $ 2,000,000 $ 1,861,250
Series 1994-M1 Class D, 8.1284% 7/25/01 (c)(d) - 842,000 535,591
LB Multifamily Mortgage Trust Series 1991-4 Caa1 2,626,634 1,772,978
Class A1, 7.2559% 4/25/21 (d)
LTC Commercial Mortgage Pass Through Certificates
7.792% 5/28/30 (c) BB 800,000 670,608
Morgan Stanley Capital I, Inc. Series 1996-MBL1
Class E, 8.2465% 5/25/21 (c)(d) - 1,166,765 1,147,805
Nomura Depositor Trust floater Series 1998-ST1A:
Class B-2, 9.5278% 1/15/03 (c)(d) - 2,000,000 1,738,750
Class B2-A, 9.5278% 2/15/34 (c)(d) - 200,000 173,875
Penn Mutual Life Insurance Co. (The)/Penn Insurance
& Annuity Co.
Series 1996-PML:
Class L, 7.9% 11/15/26 (c) - 2,500,000 1,300,250
Class M, 7.9% 11/15/26 (c) - 5,862,000 826,542
Resolution Trust Corp.:
floater Series 1991-M2 Ba3 2,957,232 2,454,503
Class A1, 6.8781% 9/25/20 (d)
Series 1991-M2:
Class A-3, 7.2498% 9/25/20 (d) Ba3 850,881 689,214
Class A2, 7.4824% 9/25/20 (d) Ba3 1,485,460 1,232,932
Structured Asset Securities Corp.:
Series 1993-C1 Class E, 6.6% 10/25/24 (c) B 3,250,268 1,462,620
Series 1995-C1:
Class E, 7.375% 9/25/24 (c) BB 2,350,000 2,273,625
Class F, 7.375% 12/25/25 (c) - 1,000,000 795,838
Series 1996-CFL:
Class G, 7.75% 2/25/28 (c) - 3,450,000 3,068,880
Class H, 7.75% 2/25/28 (c) - 2,500,000 1,753,350
COMMERCIAL MORTGAGE SECURITIES - CONTINUED
MOODY'S RATINGS (UNAUDITED) (A) PRINCIPAL VALUE
AMOUNT (NOTE 1)
Structured Mortgage Trust Series 1997-2: - $ 950,000 $ 624,625
Class C, 7.41% 1/30/06
(WAC) (c)
Class D, 7.41% 1/30/06 (WAC) (c) - 1,200,000 758,813
TOTAL COMMERCIAL MORTGAGE SECURITIES 48,985,224
(Cost $48,977,044)
COMPLEX MORTGAGE SECURITIES - 0.1%
INTEREST ONLY STRIPS - 0.1%
BKB Commercial Mortgage Trust Series 1997-C1 BBB 16,809,935 67,240
Class X-1, 1.135% 12/26/01 (c)(d)(e)
(Cost $110,540)
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COMMON STOCKS - 8.9%
SHARES
CONSTRUCTION & REAL ESTATE - 8.9%
REAL ESTATE - 1.8%
Boardwalk Equities, Inc. (b) 70,000 789,929
Boardwalk Equities, Inc. (b)(c) 3,800 42,882
Fortress Investment Corp. (b)(c) 25,000 434,375
1,267,186
REAL ESTATE INVESTMENT TRUSTS - 7.1%
AMRESCO Capital Trust, Inc. 120,000 990,000
Annaly Mortgage Management, Inc. 35,000 297,500
Apex Mortgage Capital, Inc. 104,500 1,077,656
Clarion Commercial Holdings, Inc. 64,000 384,000
Class A
Imperial Credit Commercial Mortgage Investment Corp. 25,000 246,875
LTC Properties, Inc. 40,000 670,000
Northstar Capital Investment Corp. (c) 40,000 640,000
Ocwen Asset Investment Corp. 40,000 220,000
Redwood Trust, Inc. 42,151 608,555
5,134,586
TOTAL CONSTRUCTION & REAL ESTATE 6,401,772
HEALTH - 0.0%
MEDICAL FACILITIES MANAGEMENT - 0.0%
LTC Healthcare, Inc. (b) 5,850 16,819
TOTAL COMMON STOCKS 6,418,591
(Cost $9,097,512)
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PREFERRED STOCKS - 6.4%
SHARES VALUE
(NOTE 1)
CONVERTIBLE PREFERRED STOCKS - 1.8%
CONSTRUCTION & REAL ESTATE - 1.8%
REAL ESTATE INVESTMENT TRUSTS - 1.8%
Apartment Investment & Management Co. $0.90 15,000 $ 588,750
General Growth Properties, Inc. 7,500 193,125
$1.8125 PIERS
Innkeepers USA Trust Series A, $2.16 25,000 500,000
1,281,875
NONCONVERTIBLE PREFERRED STOCKS - 4.6%
CONSTRUCTION & REAL ESTATE - 4.6%
REAL ESTATE INVESTMENT TRUSTS - 4.6%
Crown America Realty Trust 40,300 1,974,700
Series A, $5.50
Walden Residential Properties, Inc. 60,600 1,363,500
$2.30
3,338,200
TOTAL PREFERRED STOCKS 4,620,075
(Cost $4,870,633)
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CASH EQUIVALENTS - 1.6%
MATURITY AMOUNT
Investments in repurchase agreements (U.S. Treasury obligations),
in a joint trading account at 5.25%, dated 11/30/98 $ 1,144,167 1,144,000
due 12/1/98
(Cost $1,144,000)
TOTAL INVESTMENT IN SECURITIES - 100% $ 72,233,584
(Cost $79,647,123)
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SECURITY TYPE ABBREVIATION
FRN - FLOATING RATE NOTE
PIERS - PREFERRED INCOME EQUITY REDEEMABLE SECURITY
WAC - WEIGHTED AVERAGE COUPON
LEGEND
(a) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(b) Non-income producing
(c) 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
$45,762,854 or 62.2% of net assets.
(d) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(e) Security represents right to receive monthly interest payments on
an underlying pool of mortgages. Principal shown is the par amount of
the mortgage pool.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 0.0% AAA, AA, A 1.5%
Baa 0.0% BBB 0.1%
Ba 8.9% BB 8.2%
B 11.2% B 19.7%
Caa 3.4% CCC 2.9%
Ca, C 0.0% CC, C 0.0%
D 2.5%
The percentage not rated by Moody's or S&P amounted to 38.7%. FMR has
determined that unrated debt securities that are lower quality account
for 23.5% of the total value of investment in securities.
INCOME TAX INFORMATION
At November 30, 1998, the aggregate cost of investment securities for
income tax purposes was $79,655,851. Net unrealized depreciation
aggregated $7,422,267, of which $2,379,445 related to appreciated
investment securities and $9,801,712 related to depreciated investment
securities.
The fund hereby designates approximately $5,857,000 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>
NOVEMBER 30, 1998
ASSETS
INVESTMENT IN SECURITIES, AT VALUE (INCLUDING REPURCHASE AGREEMENTS OF $1,144,000)
(COST $79,647,123) - SEE $ 72,233,584
ACCOMPANYING SCHEDULE
CASH 802,236
RECEIVABLE FOR INVESTMENTS SOLD 1,076,339
DIVIDENDS RECEIVABLE 90,890
INTEREST RECEIVABLE 869,762
TOTAL ASSETS 75,072,811
LIABILITIES
PAYABLE FOR INVESTMENTS PURCHASED $ 1,469,405
ACCRUED MANAGEMENT FEE 44,208
OTHER PAYABLES AND ACCRUED EXPENSES 29,823
TOTAL LIABILITIES 1,543,436
NET ASSETS $ 73,529,375
NET ASSETS CONSIST OF:
PAID IN CAPITAL $ 78,851,768
UNDISTRIBUTED NET INVESTMENT INCOME 922,526
ACCUMULATED UNDISTRIBUTED NET REALIZED GAIN (LOSS) ON INVESTMENTS AND FOREIGN CURRENCY TRANSACTIONS 1,168,620
NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS (7,413,539)
NET ASSETS, FOR 7,531,051 SHARES OUTSTANDING $ 73,529,375
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE ($73,529,375 (DIVIDED BY) 7,531,051 SHARES) $9.76
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED NOVEMBER 30, 1998
INVESTMENT INCOME $ 741,923
DIVIDENDS
INTEREST 6,959,361
TOTAL INCOME 7,701,284
EXPENSES
MANAGEMENT FEE $ 536,850
TRANSFER AGENT FEES 17,027
ACCOUNTING FEES AND EXPENSES 60,164
NON-INTERESTED TRUSTEES' COMPENSATION 271
CUSTODIAN FEES AND EXPENSES 4,856
REGISTRATION FEES 2,710
AUDIT 37,539
LEGAL 5,102
MISCELLANEOUS 623
TOTAL EXPENSES BEFORE REDUCTIONS 665,142
EXPENSE REDUCTIONS (11,372) 653,770
NET INVESTMENT INCOME 7,047,514
REALIZED AND UNREALIZED GAIN (LOSS)
NET REALIZED GAIN (LOSS) ON:
INVESTMENT SECURITIES 1,686,021
FOREIGN CURRENCY TRANSACTIONS (620) 1,685,401
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENT SECURITIES (10,123,790)
NET GAIN (LOSS) (8,438,389)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ (1,390,875)
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED YEAR ENDED
NOVEMBER 30, NOVEMBER 30,
1998 1997
INCREASE (DECREASE) IN NET ASSETS
OPERATIONS $ 7,047,514 $ 4,413,401
NET INVESTMENT INCOME
NET REALIZED GAIN (LOSS) 1,685,401 8,027,505
CHANGE IN NET UNREALIZED APPRECIATION (DEPRECIATION) (10,123,790) (1,732,963)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS (1,390,875) 10,707,943
DISTRIBUTIONS TO SHAREHOLDERS (7,493,833) (6,037,275)
FROM NET INVESTMENT INCOME
FROM NET REALIZED GAIN (6,036,848) (2,664,180)
TOTAL DISTRIBUTIONS (13,530,681) (8,701,455)
SHARE TRANSACTIONS 24,999,660 6,243,135
NET PROCEEDS FROM SALES OF SHARES
REINVESTMENT OF DISTRIBUTIONS 13,530,317 2,983,250
COST OF SHARES REDEEMED - (19,008,500)
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM SHARE TRANSACTIONS 38,529,977 (9,782,115)
TOTAL INCREASE (DECREASE) IN NET ASSETS 23,608,421 (7,775,627)
NET ASSETS
BEGINNING OF PERIOD 49,920,954 57,696,581
END OF PERIOD (INCLUDING UNDISTRIBUTED NET INVESTMENT INCOME OF $922,526 AND
$870,640, RESPECTIVELY) $ 73,529,375 $ 49,920,954
OTHER INFORMATION
SHARES
SOLD 2,262,960 557,115
ISSUED IN REINVESTMENT OF DISTRIBUTIONS 1,248,709 248,595
REDEEMED - (1,656,813)
NET INCREASE (DECREASE) 3,511,669 (851,103)
SEE ACCOMPANYING NOTES WHICH ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED NOVEMBER 30, JANUARY 5, 1995
(COMMENCEMENT OF
OPERATIONS) TO
NOVEMBER 30,
1998 1997 1996 1995
SELECTED PER-SHARE DATA
NET ASSET VALUE, BEGINNING OF PERIOD $ 12.420 $ 11.850 $ 11.040 $ 10.000
INCOME FROM INVESTMENT OPERATIONS 1.033 D 1.124 D .950 D .922
NET INVESTMENT INCOME
NET REALIZED AND UNREALIZED GAIN (LOSS) (1.136) 1.594 .970 1.045
TOTAL FROM INVESTMENT OPERATIONS (.103) 2.718 1.920 1.967
LESS DISTRIBUTIONS
FROM NET INVESTMENT INCOME (1.117) (1.508) (.930) (.837)
IN EXCESS OF NET INVESTMENT INCOME - - - (.090)
FROM NET REALIZED GAIN (1.440) (.640) (.180) -
TOTAL DISTRIBUTIONS (2.557) (2.148) (1.110) (.927)
NET ASSET VALUE, END OF PERIOD $ 9.760 $ 12.420 $ 11.850 $ 11.040
TOTAL RETURN B, C (1.35)% 26.22% 18.71% 20.33%
RATIOS AND SUPPLEMENTAL DATA
NET ASSETS, END OF PERIOD (000 OMITTED) $ 73,529 $ 49,921 $ 57,697 $ 72,429
RATIO OF EXPENSES TO AVERAGE NET ASSETS .91% 1.02% .91% 1.09% A
RATIO OF EXPENSES TO AVERAGE NET ASSETS AFTER EXPENSE REDUCTIONS .89% E .99% E .90% E 1.09% A
RATIO OF NET INVESTMENT INCOME TO AVERAGE NET ASSETS 9.65% 9.58% 8.72% 9.14% A
PORTFOLIO TURNOVER RATE 53% 80% 53% 49% A
</TABLE>
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 5 OF NOTES TO
FINANCIAL STATEMENTS).
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES
(SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS).
NOTES TO FINANCIAL STATEMENTS
For the period ended November 30, 1998
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Real Estate High Income Fund (the fund) is a fund of Fidelity
Advisor Series IV (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, as an open-end management investment company
organized as a Massachusetts business trust. 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 are valued based upon a computerized
matrix system and/or appraisals by a pricing service, both of which
consider market transactions and dealer-supplied valuations.
Securities (including restricted securities) for which market
quotations are not readily available are valued primarily using
dealer-supplied quotes 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 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 the 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. 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. The fund may place a debt obligation on
non-accrual status and reduce related interest income by ceasing
current accruals and writing off interest receivables when the
collection of all or a portion of interest has become doubtful based
on consistently applied procedures, under the general supervision of
the Board of Trustees of the fund. A debt obligation is removed from
non-accrual status when the issuer resumes interest payments or when
collectibility of interest is reasonably assured.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and
paid monthly from net investment income. Distributions from realized
gains, if any, 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 paydown gains/losses on certain securities, foreign
currency transactions, non-taxable dividends and losses deferred due
to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments and foreign currency transactions
may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the 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 or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
2. OPERATING POLICIES - CONTINUED
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, the fund had no investments in restricted
securities (excluding 144A issues).
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $66,076,780 and $37,319,590, respectively, of which U.S.
government and government agency obligations aggregated $39,641,728
and $31,927,408, respectively.
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 and is based on the monthly average net assets of all the mutual
funds advised by FMR. The rates ranged from .1100% to .3700% for the
period. The annual individual fund fee rate is .60%. 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. For the period, the management
fee was equivalent to an annual rate of .73% of average net assets.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations
Company, Inc. (FIIOC), an affiliate of FMR, is the fund's transfer,
dividend disbursing and shareholder servicing agent. FIIOC receives
account fees and asset-based fees that vary according to account size
and type of account. FIIOC 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 .02% of
average net assets.
ACCOUNTING FEES. Fidelity Service Company, Inc., an affiliate of FMR,
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.
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 $283 under this arrangement.
In addition, the fund has entered into arrangements with its custodian
and transfer agent whereby credits realized as a result of uninvested
cash balances were used to reduce a portion of the fund's expenses.
During the period, the fund's custodian and transfer agent fees were
reduced by $4,671 and $6,418, respectively, under these arrangements.
6. BENEFICIAL INTEREST.
At the end of the period, two shareholders were each record owners of
more than 10% of the total outstanding shares of the fund, totaling
100%.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Advisor Series IV and the Shareholders of
Fidelity Real Estate High Income 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 Real Estate High Income Fund (a fund of Fidelity Advisor
Series IV) at November 30, 1998, the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Fidelity Real Estate High Income Fund's
management; our responsibility is to express an opinion on these
financial statements based on our audits. We conducted our audits of
these financial statements in accordance with generally accepted
auditing standards which require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are
free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the
financial statements, assessing the accounting principles used and
significant estimates made by management, and evaluating the overall
financial statement presentation. We believe that our audits, which
included confirmation of securities at November 30, 1998 by
correspondence with the custodian and brokers, provide a reasonable
basis for the opinion expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
January 12, 1999
DISTRIBUTIONS
The Board of Trustees of Fidelity Real Estate High Income Fund voted
to pay to shareholders of record at the opening of business on record
date, the following distributions derived from capital gains realized
from sales of portfolio securities:
PAY DATE 12/22/97 1/5/98 12/21/98
RECORD DATE 12/19/97 1/2/98 12/18/98
SHORT-TERM
CAPITAL GAINS $ .03 $.01 $ -
LONG-TERM
CAPITAL GAINS $1.28 $.12 $.15
LONG-TERM
CAPITAL GAIN PERCENTAGES
28% rate 58.77% 59.51% -
20% rate 41.23% 40.49% 100%
A total of 1.2% of the dividends distributed during the fiscal year
was derived from interest on U.S Government securities which is
generally exempt from state income tax.
A total of 0.05% of the dividends distributed during the fiscal year
qualifies for the dividends received deduction for corporate
shareholders.
The fund will notify shareholders in January 1999 of the applicable
percentages for use in preparing 1998 income tax returns.
PROXY VOTING RESULTS
A special meeting of the fund's shareholders was held on October 7,
1998. 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
VOTES CAST VOTES CAST
RALPH F. COX
AFFIRMATIVE 539,625,345.29 98.805
WITHHELD 6,524,581.07 1.195
TOTAL 546,149,926.36 100.000
PHYLLIS BURKE DAVIS
AFFIRMATIVE 539,570,849.71 98.795
WITHHELD 6,579,076.65 1.205
TOTAL 546,149,926.36 100.000
ROBERT M. GATES
AFFIRMATIVE 539,510,050.47 98.784
WITHHELD 6,639,875.89 1.216
TOTAL 546,149,926.36 100.000
EDWARD C. JOHNSON 3D
AFFIRMATIVE 538,985,893.01 98.688
WITHHELD 7,164,033.35 1.312
TOTAL 546,149,926.36 100.000
E. BRADLEY JONES
AFFIRMATIVE 538,927,817.43 98.678
WITHHELD 7,222,108.93 1.322
TOTAL 546,149,926.36 100.000
DONALD J. KIRK
AFFIRMATIVE 539,628,066.94 98.806
WITHHELD 6,521,859.42 1.194
TOTAL 546,149,926.36 100.000
PROPOSAL 2
To ratify the selection of PricewaterhouseCoopers LLP as independent
accountants of the fund.
# OF % OF
VOTES CAST VOTES CAST
AFFIRMATIVE 78,805,097.87 100.000
AGAINST .00 .000
ABSTAIN .00 .000
TOTAL 78,805,097.87 100.000
PROPOSAL 3
To authorize the Trustees to adopt an Amended and Restated Declaration
of Trust.
# OF % OF
VOTES CAST VOTES CAST
AFFIRMATIVE 479,594,533.67 95.156
AGAINST 10,033,506.32 1.991
ABSTAIN 14,379,781.75 2.853
TOTAL 504,007,821.74 100.000
BROKER 42,142,104.62
NON-VOTES
# OF % OF
VOTES CAST VOTES CAST
PETER S. LYNCH
AFFIRMATIVE 539,693,497.37 98.818
WITHHELD 6,456,428.99 1.182
TOTAL 546,149,926.36 100.000
WILLIAM O. MCCOY
AFFIRMATIVE 539,146,457.11 98.718
WITHHELD 7,003,469.25 1.282
TOTAL 546,149,926.36 100.000
GERALD C. MCDONOUGH
AFFIRMATIVE 539,461,031.30 98.775
WITHHELD 6,688,895.06 1.225
TOTAL 546,149,926.36 100.000
MARVIN L. MANN
AFFIRMATIVE 539,523,857.95 98.787
WITHHELD 6,626,068.41 1.213
TOTAL 546,149,926.36 100.000
ROBERT C. POZEN
AFFIRMATIVE 539,551,908.09 98.792
WITHHELD 6,598,018.27 1.208
TOTAL 546,149,926.36 100.000
THOMAS R. WILLIAMS
AFFIRMATIVE 539,441,485.70 98.772
WITHHELD 6,708,440.66 1.228
TOTAL 546,149,926.36 100.000
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
Robert C. Pozen, Senior Vice President
Robert A. Lawrence, Vice President
Mark P. Snyderman, Vice President
Eric D. Roiter, Secretary
Richard A. Silver, Treasurer
John H. Costello, Assistant Treasurer
Leonard M. Rush, Assistant Treasurer
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
* INDEPENDENT TRUSTEES
