FIDELITY ADVISOR INSTITUTIONAL EQUITY PORTFOLIO GROWTH
ANNUAL REPORT
NOVEMBER 30, 1993
PERFORMANCE UPDATE
$100,000 OVER TEN YEARS
Inst'l Equity Port. Growth (086) S&P 500
11/30/83 100,000.00 100,000.00
12/31/83 97,213.93 99,480.00
01/31/84 87,761.20 98,922.91
02/29/84 77,412.94 95,440.83
03/31/84 76,517.41 97,091.95
04/30/84 76,417.91 98,014.33
05/31/84 71,442.79 92,584.33
06/30/84 74,228.86 94,593.41
07/31/84 70,945.28 93,420.45
08/31/84 83,184.08 103,743.41
09/30/84 81,293.53 103,764.16
10/31/84 82,288.56 104,168.84
11/30/84 79,900.50 103,002.15
12/31/84 81,691.54 105,721.41
01/31/85 94,129.36 113,957.11
02/28/85 97,412.94 115,358.78
03/31/85 94,626.87 115,439.53
04/30/85 93,731.35 115,335.63
05/31/85 99,004.98 122,002.03
06/30/85 100,199.01 123,917.47
07/31/85 103,880.60 123,731.59
08/31/85 104,676.62 122,679.87
09/30/85 98,606.97 118,839.99
10/31/85 102,487.56 124,330.40
11/30/85 110,348.26 132,859.46
12/31/85 115,621.89 139,289.86
01/31/86 119,530.03 140,069.88
02/28/86 129,584.91 150,547.11
03/31/86 136,664.37 158,947.64
04/30/86 140,973.61 157,151.53
05/31/86 147,027.06 165,511.99
06/30/86 148,155.67 168,309.15
07/31/86 135,740.96 158,900.67
08/31/86 140,358.00 170,691.10
09/30/86 127,532.89 156,574.94
10/31/86 136,869.57 165,609.32
11/30/86 135,227.96 169,633.62
12/31/86 132,399.36 165,307.96
01/31/87 148,282.84 187,574.95
02/28/87 161,680.18 194,984.16
03/31/87 160,211.38 200,619.20
04/30/87 154,336.21 198,833.69
05/31/87 153,319.36 200,563.54
06/30/87 156,256.94 210,692.00
07/31/87 163,374.94 221,374.09
08/31/87 173,204.55 229,631.34
09/30/87 170,266.96 224,602.41
10/31/87 125,412.30 176,223.05
11/30/87 112,080.18 161,702.27
12/31/87 131,650.47 174,007.82
01/31/88 131,287.46 181,333.55
02/29/88 139,152.61 189,783.69
03/31/88 141,209.65 183,919.37
04/30/88 139,636.62 185,960.88
05/31/88 138,668.60 187,578.74
06/30/88 151,010.83 196,188.60
07/31/88 147,985.78 195,443.08
08/31/88 141,451.65 188,798.02
09/30/88 149,316.80 196,840.82
10/31/88 147,743.77 202,312.99
11/30/88 145,444.73 199,419.91
12/31/88 152,149.17 202,909.76
01/31/89 164,138.18 217,762.76
02/28/89 164,261.78 212,340.47
03/31/89 169,700.10 217,288.00
04/30/89 180,947.52 228,565.24
05/31/89 196,520.87 237,822.14
06/30/89 189,228.58 236,466.55
07/31/89 202,206.38 257,819.48
08/31/89 210,116.65 262,872.74
09/30/89 215,925.76 261,794.96
10/31/89 213,206.60 255,721.32
11/30/89 214,071.79 260,938.04
12/31/89 220,374.96 267,200.55
01/31/90 200,147.99 249,271.39
02/28/90 208,210.48 252,486.99
03/31/90 220,374.96 259,177.90
04/30/90 215,990.09 252,698.45
05/31/90 246,684.16 277,336.55
06/30/90 248,805.87 275,450.66
07/31/90 241,733.50 274,569.22
08/31/90 210,897.98 249,748.16
09/30/90 193,499.96 237,585.43
10/31/90 195,904.57 236,563.81
11/30/90 219,950.61 251,845.83
12/31/90 235,651.27 258,872.33
01/31/91 269,881.52 270,159.16
02/28/91 294,210.47 289,475.54
03/31/91 323,065.72 296,480.85
04/30/91 321,934.15 297,192.41
05/31/91 338,766.38 310,031.12
06/30/91 310,618.36 295,831.69
07/31/91 335,795.99 309,617.45
08/31/91 353,901.24 316,955.38
09/30/91 354,749.93 311,662.23
10/31/91 355,740.06 315,838.50
11/30/91 343,434.14 303,110.21
12/31/91 388,135.68 337,786.02
01/31/92 399,003.90 331,503.20
02/29/92 401,054.92 335,812.74
03/31/92 382,122.36 329,264.39
04/30/92 374,233.78 338,944.76
05/31/92 372,498.30 340,605.59
06/30/92 360,192.13 335,530.57
07/31/92 372,813.84 349,253.77
08/31/92 363,820.87 342,094.07
09/30/92 370,605.04 346,130.78
10/31/92 390,168.70 347,342.24
11/30/92 416,043.21 359,186.61
12/31/92 427,483.68 363,604.60
01/31/93 439,434.88 366,658.88
02/28/93 428,299.73 371,645.44
03/31/93 441,855.57 379,487.16
04/30/93 434,754.89 370,303.57
05/31/93 460,252.77 380,227.71
06/30/93 462,189.31 381,330.37
07/31/93 454,443.12 379,805.05
08/31/93 471,387.91 394,199.66
09/30/93 485,589.26 391,164.32
10/31/93 491,721.66 399,261.42
11/30/93 479,941.00 395,468.44
$100,000 OVER TEN YEARS: LET'S SAY YOU INVESTED $100,000 IN FIDELITY
ADVISOR INSTITUTIONAL EQUITY PORTFOLIO GROWTH (INSTITUTIONAL CLASS) ON
NOVEMBER 30, 1983. BY NOVEMBER 30, 1993, THE VALUE OF YOUR INVESTMENT WOULD
HAVE GROWN TO $479,941 - A 379.94% INCREASE ON YOUR INITIAL INVESTMENT. FOR
COMPARISON, LOOK AT HOW A $100,000 INVESTMENT IN THE S&P 500 (WITH
DIVIDENDS REINVESTED) DID OVER THE SAME PERIOD. IT WOULD HAVE GROWN TO
$395,468 - A 295.47% INCREASE.
CUMULATIVE TOTAL RETURNS
FOR THE PERIOD ENDED NOVEMBER 30, 1993
One Five Ten
Year Years Years
INSTITUTIONAL EQUITY
PORTFOLIO GROWTH 15.36% 229.98 379.94
% %
S&P 500(Registered trademark) 10.10% 98.31 295.47
% %
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED NOVEMBER 30, 1993
One Five Ten
Year Years Years
INSTITUTIONAL EQUITY
PORTFOLIO GROWTH 15.36% 26.97% 16.98%
S&P 500(Registered trademark) 10.10% 14.67% 14.74%
TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE AND REINVESTMENT OF DIVIDENDS
AND CAPITAL GAINS. FIGURES FOR THE S&P 500, AN UNMANAGED INDEX OF
COMMON STOCK PRICES, INCLUDE REINVESTMENT OF DIVIDENDS. S&P 500 IS A
REGISTERED TRADEMARK OF STANDARD & POOR'S CORPORATION.
AVERAGE ANNUAL TOTAL RETURNS FOR MORE THAN ONE YEAR ASSUME A STEADY
COMPOUNDED RATE OF RETURN AND ARE NOT THE FUND'S YEAR-BY-YEAR RESULTS,
WHICH FLUCTUATED OVER THE PERIODS SHOWN.
FOR THE PERIOD ENDED NOVEMBER 30, 1993, FIDELITY ADVISOR EQUITY PORTFOLIO
GROWTH (RETAIL CLASS) SHARES' CUMULATIVE TOTAL RETURNS WERE 14.52%,
227.08%, AND 375.73% FOR ONE YEAR, FIVE YEARS, AND TEN YEARS, RESPECTIVELY.
FOR THE PERIOD ENDED NOVEMBER 30, 1993,
RETAIL CLASS SHARES' AVERAGE ANNUAL TOTAL RETURNS (WHICH INCLUDE THE EFFECT
OF THE 4.75% SALES CHARGE) WERE 9.08%, 25.52%, AND 16.31% FOR ONE YEAR,
FIVE YEARS, AND TEN YEARS, RESPECTIVELY.
ALL PERFORMANCE NUMBERS ARE HISTORICAL; THE FUND'S SHARE PRICE AND RETURN
WILL VARY AND YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES.
AN INTERVIEW WITH
ROBERT STANSKY,
PORTFOLIO MANAGER OF
FIDELITY ADVISOR INSTITUTIONAL EQUITY PORTFOLIO GROWTH
WE'VE PROVIDED THE FOLLOWING MARKET RECAP AS CONTEXT FOR THE MANAGER'S
INTERVIEW:
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.
Q. BOB, HOW HAS THE FUND PERFORMED?
A. The fund's total return for the year ended November 30, 1993, was
15.36%. That compared to 9.30% for the average growth fund tracked by
Lipper Analytical Services.
Q. WHAT HELPED THE FUND TOP THE AVERAGE?
A. I believe stock prices follow earnings, and the fund did well to the
extent that I was able to find companies that were growing earnings within
their given industries. That said, this past year has not been without its
challenges. We've seen the stocks of many growth companies take on rather
high price-to-earnings ratios, or valuations. This year, many stocks with
p/e ratios high enough to scare any fund manager just kept on performing
well. That made it more difficult to determine whether a particular stock's
price was so high relative to earnings that it couldn't rise much more.
It's very tough to hold on to or buy more of a stock that's on the way up;
most people want to sell and take their profits. In part, we beat the
average by sticking with rising stocks of companies that were growing
earnings, even if these stocks were expensive.
Q. LET'S GET SPECIFIC. WHERE DID YOU FIND THE TOP PERFORMERS?
A. Mostly in the technology sector - 23.8% of the fund on November 30. This
was the group of companies that showed the strongest earnings growth this
year, with the sector up over 13% in 1993, through November. Investors
wanted to know who had the new product on the market and was selling a lot
of them. For example, Compaq remained one the fund's top investments over
the last six months. The personal computer market is adding roughly 40
million units a year and Compaq is gaining market share. Profitability is
improving and the company appears to have the right products at the right
price. The price of Compaq's stock ended May at $57.88 and had risen to
$72.38 by the end of November. Motorola was the fund's fourth largest
investment as of November 30. Here's a well-positioned company in two
attractive industries - semi-conductors and communications equipment, both
of which were among the market leaders this year. Motorola has been
increasing its earnings and seems poised to benefit from the technology
boom in this country. So far, it performed well in the late summer and
early fall, before dropping slightly in November.
Q. HAVEN'T MANY TECHNOLOGY STOCKS DROPPED IN PRICE LATELY?
A. Yes, it's true as a whole they've fallen off somewhat, especially as
some investors have taken profits. However, it's not unusual for the sector
to be very volatile; a stock rising strongly one minute can be perceived as
overpriced and subject to heavy selling the next. Recently questionable
business prospects within some of these companies also caused their stocks
to lose favor. For example, Microsoft is a stock I sold in early summer
because I had doubts about the company's near-term earnings potential,
given its valuation. After its price dropped in the fall, it began to look
more attractive and I began buying again. I have to be very careful with
technology stocks but I like their long-term prospects.
Q. WHERE ELSE DID YOU FIND INVESTING OPPORTUNITIES?
A. Financial stocks - the fund's second largest sector investment at 9.9% -
performed well for part of the year before prices edged back down.
Brokerage companies provided some strong gains. For example, Merrill
Lynch's stock rose roughly 30% from May through October. In addition, the
fund had 9% of its investments in retail stocks at the end of November.
This sector has had a rough year, but a handful of stocks have done well.
J.C. Penney was the fund's biggest retail holding during many of the last
six months. I am much more apt to own a specialty retailer than a large
department store, but few specialty stores did well this year. Lately,
Penney's has done a good job with its private label merchandise. Its
catalogue sales also have been strong. In addition, auto stocks - namely,
Ford and Chrysler - have been steady performers.
Q. AREN'T AUTO COMPANIES CONSIDERED CYCLICAL STOCKS, OR THOSE THAT TEND TO
RISE AND FALL IN TANDEM WITH THE ECONOMY?
A. Traditionally, yes. But if you were to cover up the names and strictly
look at Chrysler's or Ford's business fundamentals, you'd think they were
growth stocks. Chrysler, in particular, has shown strong earnings momentum
over the last few quarters. In business terms, they're seeing "unit
growth," which simply means they're selling more cars. That makes these
investments consistent with the fund's goal of buying stocks of companies
whose earnings are growing faster than the market average.
Q. ANY DISAPPOINTMENTS?
A. Always. Casino stocks come to mind this time. Many had big gains this
year as more states and localities legalized casino gambling as a way to
boost their economies. In hindsight, investing more heavily in casinos
could have provided the fund with a stronger return. Companies that
specialize in riverboat gambling did especially well.
Q. WHAT'S YOUR VIEW OF THE NEXT SIX MONTHS?
A. Because so many stocks now carry prices that are high relative to
earnings, I'll have to be choosy in the months ahead. Stocks that seem like
sure bets are becoming very scarce. I don't like to make predictions
concerning which way the market will go. But I think it'll be an
environment in which the art of picking successful stocks and avoiding the
losers will be much more of a factor in success than market or economic
conditions. I always have to watch the economy closely, but I'm more
concerned with the business fundamentals of the individual companies whose
stocks I buy. These growth companies are always out there. If I can find
them with consistency, the fund should continue to do well over the long
run. But investors need to remember that any interim period can be rocky.
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCK HOLDINGS AS OF NOVEMBER 30, 1993
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Compaq Computer Corp. 3.4 2.2
Chrysler Corp. 1.5 1.3
Cisco Systems, Inc. 1.5 2.8
Motorola, Inc. 1.4 0.7
Pfizer, Inc. 1.3 0.6
Wellfleet Communication, Inc. 1.3 0.3
Cabletron Systems, Inc. 1.1 0.2
Oracle Systems Corp. 1.0 0.3
Penney (J.C.), Inc. 1.0 0.9
Ford Motor Co. 1.0 1.3
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN INDUSTRIES AS OF NOVEMBER 30, 1993
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Technology 23.8 27.2
Finance 9.9 13.2
Retail and Wholesale 9.1 9.8
Health 8.9 6.3
Media and Leisure 5.9 4.7
Utilities 4.9 3.7
Durables 4.5 4.2
Transportation 3.0 2.8
Energy 2.8 2.8
Nondurables 2.4 0.2
</TABLE>
FIDELITY ADVISOR EQUITY PORTFOLIO GROWTH
INVESTMENTS/NOVEMBER 30, 1993
(Showing Percentage of Total Value of Investment in Securities)
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - 83.0%
AEROSPACE & DEFENSE - 0.1%
AEROSPACE & DEFENSE - 0.0%
Orbital Sciences Corporation (a) 7,400 $ 133,200 68556410
DEFENSE ELECTRONICS - 0.1%
General Motors Corp. 17,100 904,163 37044210
Nichols Research Corp. (a) 5,000 65,000 65381810
969,163
TOTAL AEROSPACE & DEFENSE 1,102,363
BASIC INDUSTRIES - 1.3%
CHEMICALS & PLASTICS - 0.0%
GEON 7,900 181,700 37246W10
Raychem Corp. 1,800 66,472 75460310
248,172
IRON & STEEL - 0.3%
Compania Siderurgica Nacional (a) 29,733,100 642,532 24499523
LTV Corp. (a) 52,800 765,600 50192110
USX-U.S. Steel Group 300 10,800 90337T10
Wheeling Pittsburgh Corp. (a) 37,700 622,050 96314210
2,040,982
PAPER & FOREST PRODUCTS - 1.0%
Caraustar Industries, Inc. 4,300 73,100 14090910
Georgia-Pacific Corp. 20,700 1,521,450 37329810
International Paper Co. 66,100 4,412,164 46014610
Pope & Talbot, Inc. 3,500 95,375 73282710
Smurfit (Jeff) Group PLC (U.K.) 49,600 195,319 84699793
Temple-Inland, Inc. 8,500 430,313 87986810
6,727,721
TOTAL BASIC INDUSTRIES 9,016,875
CONGLOMERATES - 1.2%
Citic Pacific Ltd. Ord. 72,000 188,276 45299792
First Pacific Co. Ltd. 460,000 226,283 33699192
Grupo Carso SA de CV Class A-1 218,600 1,930,336 40099594
Jardine Matheson & Co. Ltd. Ord. 196,158 1,663,259 47111510
United Technologies Corp. 73,100 4,523,063 91301710
8,531,217
CONSTRUCTION & REAL ESTATE - 1.9%
BUILDING MATERIALS - 0.5%
Armstrong World Industries, Inc. 21,900 1,004,663 04247610
Cementos Apasco SA de CV Class A 30,200 255,000 15299392
Cemex SA, Series B (a) 53,600 1,395,753 15299293
Lafarge Corp. 700 14,000 50586210
Tolmex B2 SA (a) 43,800 519,462 94399492
3,188,878
CONSTRUCTION - 0.6%
Bufete Industrial SA sponsored ADR
representing 3 ordinary certificate Banco (a) 18,800 $ 521,700 11942H10
Centex Corp. 47,900 1,880,075 15231210
Ekran Berhad Ord. (a) 81,000 427,482 28299792
Empresas Ica Sociedad Controladora SA
de CV sponsored ADR representing Ord.
Participation Certificate 4,800 116,400 29244810
Kaufman & Broad Home Corp. 2,100 42,263 48616810
Lennar Corp. 12,600 374,850 52605710
Pulte Corp. 14,600 540,200 74586710
Redman Industries (a) 8,400 132,300 75764210
Schuler Homes, Inc. (a) 10,000 246,250 80818810
Schult Homes Corp. 6,500 89,375 80819510
4,370,895
ENGINEERING - 0.2%
Glenayre Technologies, Inc. 40,600 1,583,400 37789910
REAL ESTATE - 0.2%
Hon Kwok Land Investment Ltd. Ord 488,000 221,108 43899192
Hovnanian Enterprises, Inc. Class A (a) 2,000 31,250 44248720
Sun Hung Kai Properties Ltd. 223,300 1,387,530 86676H10
1,639,888
REAL ESTATE INVESTMENT TRUSTS - 0.4%
Crown American Realty Trust (SBI) 19,400 315,250 22818610
Developers Diversified Realty 8,700 234,900 25159110
Duke Realty Investors, Inc. 34,200 769,500 26441150
Equity Residential Properties Trust (SBI) 17,900 581,750 29476L10
Excel Realty Trust, Inc. 2,800 53,200 30067R10
Horizon Outlet Centers, Inc. (a) 1,200 29,100 44043K10
LTC Properties, Inc. 1,800 22,950 50217510
Manufactured Home Community 13,100 522,363 56468210
McArthur/Glen Realty Corp. (a) 400 9,500 57918810
Property Trust of America (SBI) 7,300 136,875 74344510
United Dominion Realty Trust, Inc 5,100 70,125 91019710
Vornado Realty Trust 9,200 342,700 92904210
3,088,213
TOTAL CONSTRUCTION & REAL ESTATE 13,871,274
DURABLES - 4.5%
AUTOS, TIRES, & ACCESSORIES - 3.3%
Autozone, Inc. (a) 53,900 2,991,450 05333210
Chrysler Corp. 206,000 10,866,500 17119610
Dana Corp. 7,900 432,525 23581110
Discount Auto Parts, Inc. (a) 11,300 281,088 25464210
Echlin, Inc. 23,800 788,375 27874910
Federal-Mogul Corp. 28,900 744,175 31354910
Ford Motor Co. 112,500 6,834,375 34537010
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES - CONTINUED
Grupo Dina (Consorcio G) ADR (a) 11,100 $ 244,200 21030610
Lund International Holdings, Inc. (a) 3,600 66,600 55036810
O'Reilly Automotive, Inc. (a) 400 11,000 68609110
23,260,288
CONSUMER ELECTRONICS - 0.4%
Fossil, Inc. (a) 24,400 469,700 34988210
Harman International Industries, Inc. (a) 13,300 319,200 41308610
Newell Co. 16,700 672,175 65119210
Universal Electronics, Inc. (a) 31,900 805,475 91348310
Whirlpool Corp. 11,500 682,813 96332010
2,949,363
HOME FURNISHINGS - 0.2%
Ethan Allen Interiors, Inc. (a) 24,300 643,950 29760210
Haverty Furniture Companies, Inc. 21,000 351,750 41959610
Levitz Furniture, Inc. (a) 18,100 257,925 52748210
Rhodes, Inc. (a) 4,700 65,800 76235P10
Stanley Furniture (a) 8,200 86,100 85430520
1,405,525
TEXTILES & APPAREL - 0.6%
Justin Industries, Inc. 11,900 162,138 48217110
Mohawk Industries, Inc. (a) 14,600 438,000 60819010
NIKE, Inc. Class B 15,100 722,913 65410610
Nine West Group, Inc. (a) 31,800 1,045,425 65440D10
Reebok International Ltd. 40,500 1,235,250 75811010
Stride Rite Corp. 10,800 199,800 86331410
Wolverine World Wide, Inc. 10,900 316,100 97809710
4,119,626
TOTAL DURABLES 31,734,802
ENERGY - 2.8%
ENERGY SERVICES - 0.6%
Halliburton Co. 45,000 1,389,375 40621610
Rowan Companies, Inc. (a) 7,500 63,750 77938210
Schlumberger Ltd. 50,500 2,903,750 80685710
4,356,875
OIL & GAS - 2.2%
Anadarko Petroleum Corp. 38,500 1,535,188 03251110
Anderson Exploration Ltd. (a) 42,700 931,041 03390110
Archer Resources Ltd. (a) 22,700 271,907 03950K10
British Petroleum PLC ADR 44,300 2,624,775 11088940
Burlington Resources, Inc. 54,500 2,452,500 12201410
Canadian Natural Resources Ltd. (a) 45,900 558,394 13638510
Chauvco Resources Ltd. Class A (a) 25,600 301,853 16260010
Cross Timbers Oil Co. 2,400 $ 34,200 22757310
Elan Energy, Inc. (a) 26,700 189,893 28390410
Encal Energy Ltd. (a) 120,800 402,440 29250D10
Enron Oil & Gas Co. 20,800 803,400 29356210
Excel Energy, Inc. (a) 44,700 188,237 30065410
Intensity Resources Ltd. (a) 35,300 62,104 45816E10
Inverness Petroleum Ltd. (a) 18,500 148,886 46190810
Louis Dreyfus Natural Gas Corp. (a) 12,600 218,925 54601110
Murphy Oil Corp. 3,800 152,475 62671710
Newfield Exploration Co. (a) 3,100 50,763 65129010
Noble Affiliates, Inc. 1,500 37,125 65489410
Northrock Resources Ltd. (a) 29,200 163,953 66679810
Parker & Parsley Petroleum Co. 2,700 55,350 70101810
Petromet Resources Ltd. Ord. (a) 73,000 321,074 71673110
Pinnacle Resources Ltd. (a) 28,900 405,671 72348R10
Renaissance Energy Ltd. (a) 2,100 42,055 75966610
Rio Alto Exploration Ltd. (a) 132,200 742,279 76689210
Summit Resources Ltd. 95,300 624,275 86624610
Tarragon Oil & Gas Ltd. (a) 116,600 1,363,934 87629E20
Unocal Corp. 5,000 135,625 91528910
YPF Sociedad Anonima sponsored ADR
representing Class D shares 34,300 848,925 98424510
15,667,247
TOTAL ENERGY 20,024,122
FINANCE - 9.9%
BANKS - 5.2%
Advanta Corp. 26,400 1,016,400 00794210
AmSouth Bancorporation 7,050 207,975 03216510
Banacci SA de CV Class C 62,800 468,536 06399893
Bank of Boston Corp. 56,879 1,237,118 06071610
Bank of New York Co., Inc. 53,300 2,958,150 06405710
BanPonce Corp. 10,800 321,300 06670410
Chase Manhattan Corp. 100 3,350 16161010
Citicorp (a) 141,600 173034105,026,800
First Chicago Corp. 4,132 170,962 31945510
First Fidelity Bancorporation 10,983 459,913 32019510
First Interstate Bancorp 82,800 4,833,450 32054810
First Union Corp. 70,424 2,860,975 33735810
Fleet Financial Group, Inc. 72 2,178 33891510
Grupo Financiero Bancomer SA de CV
sponsored ADR, Series C (b) 26,500 944,063 40048610
HSBC Holdings PLC 147,099 1,628,129 42199192
Mellon Bank Corp. 71,562 3,971,692 58550910
Mercantile Bancorporation, Inc. 6,500 286,000 58734210
NationsBank Corp. 53,228 2,508,370 63858510
Norwest Corp. 18,400 420,900 66938010
Shawmut National Corp. 98,300 2,052,013 82048410
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
FINANCE - CONTINUED
BANKS - CONTINUED
Signet Banking Corp. 159,332 $ 5,138,457 82668110
Westpac Banking Corp. 69,688 195,224 96121410
36,711,955
CREDIT & OTHER FINANCE - 2.0%
American Express Co. 41,500 1,302,063 02581610
American Residential Holdings Corp. (a) 17,300 307,075 02926R10
Argentaria Corp. Bancaria de Esp (a) 3,800 162,375 21991392
Beneficial Corp. 13,500 995,625 08172110
Credit Acceptance Corp. (a) 7,200 243,000 22531010
Dean Witter Discover & Co. 92,854 3,528,452 24240V10
First USA, Inc. 43,000 1,279,250 33743H10
GFC Financial Corp. 900 24,300 36160910
Green Tree Acceptance, Inc. 57,200 2,817,100 39350510
Household International, Inc. 98,688 3,256,704 44181510
JCG Holdings 262,000 208,589 46799792
Mercury Finance Co. 12,500 207,813 58939510
North American Mortgage Co. 3,200 84,800 65703710
14,417,146
FEDERAL SPONSORED CREDIT - 1.2%
Federal Home Loan Mortgage Corporation 119,300 5,726,400 31340030
Federal National Mortgage Association 32,700 2,468,850 31358610
8,195,250
INSURANCE - 1.0%
Aetna Life & Casualty Co. 48,200 2,946,225 00814010
Allstate Corp. 21,200 625,400 02000210
American Bankers Insurance Group, Inc. 6,100 146,400 02445610
Capital Guaranty Corp. (a) 40,800 816,000 14018K10
Capital Holding Corp. 13,600 520,200 14018610
Citizens Corp. 900 18,113 17453310
Exel Ltd. 2,200 95,425 30161610
MGIC Investment Corp. 4,300 245,638 55284810
Mutual Risk Management Ltd. 300 8,850 62835110
Paul Revere Corp. (a) 9,200 213,900 70355910
TIG Holdings, Inc. 4,800 106,200 87246910
UNUM Corp. 23,000 1,132,750 90319210
6,875,101
SAVINGS & LOANS - 0.0%
Standard Federal Bank 400 11,500 85338910
SECURITIES INDUSTRY - 0.5%
Alex. Brown, Inc. 11,300 285,325 01390210
BHC Financial, Inc. (a) 5,625 154,688 05544W10
Colonial Group, Inc. Class A 10,000 300,000 19569910
Morgan Stanley Group, Inc. 17,000 1,219,750 61744610
Paine Webber Group, Inc. 56,500 $ 1,504,313 69562910
3,464,076
TOTAL FINANCE 69,675,028
HEALTH - 8.9%
DRUGS & PHARMACEUTICALS - 5.4%
Alpha 1 Biomedicals, Inc. (a) 100 1,813 02091010
Amgen, Inc. (a) 130,600 5,909,650 03116210
Applied Immune Sciences, Inc. (a) 11,200 133,000 03820F10
Biogen, Inc. (a) 38,800 1,474,400 09059710
Bristol-Myers Squibb Co. 26,400 1,580,700 11012210
COR Therapeutics, Inc. (a) 30,500 419,375 21775310
Cell Genesys, Inc. (a) 18,900 373,275 15092110
Cellcor, Inc. (a) 3,000 3,375 15115510
Cellpro, Inc. (a) 19,200 542,400 15115610
Cephalon, Inc. (a) 10,800 178,200 15670810
Chiron Corp. (a) 34,400 2,863,800 17004010
Cortech, Inc. (a) 1,500 19,875 22051J10
Creative Biomolecules, Inc. (a) 26,500 265,000 22527010
Cytotheraputics, Inc. (a) 17,800 218,050 23292310
Elan PLC ADR (a) 41,750 1,743,063 28413120
Elan PLC Therapeutic Systems unit
(1 common & 1 ADR warrant) (a) 7,093 212,790 28413140
Genetics Institute, Inc. depository share (a) 22,300 1,020,225 37185530
IMCERA Group, Inc. 55,900 1,928,550 45245410
Immulogic Pharmaceutical Corp. (a) 7,200 82,800 45252R10
Interferon Sciences, Inc. (a) 1,100 5,363 45890310
Liposome Co, Inc. (a) 29,000 355,250 53631110
Magainin Pharmaceuticals, Inc. (a) 12,300 162,975 55903610
Marsam Pharmaceuticals, Inc. (a) 28,800 568,800 57172810
Molecular Biosystems, Inc. (a) 6,000 141,000 60851310
Perspective Biosystems, Inc. (a) 4,000 106,000 71527110
Pfizer, Inc. 137,600 9,150,400 71708110
Protein Design Labs, Inc. (a) 1,800 42,975 74369L10
Schering-Plough Corp. 88,900 5,945,188 80660510
Sciclone Pharmaceuticals, Inc. (a) 11,800 292,050 80862K10
SciGenics, Inc. (Callable) (a) 2,900 21,750 80890410
Somatix Therapy Corp. (a) 10,800 74,250 83444710
Therapeutic Discovery Corp. unit 1
Class A + 1 Alza Corp. (warrant) (a) 3,280 18,040 88337620
US Bioscience, Inc. (a) 304 3,230 91164610
Univax Biologics, Inc. (a) 100 925 91335G10
Warner-Lambert Co. 29,900 1,984,613 93448810
37,843,150
MEDICAL EQUIPMENT & SUPPLIES - 2.1%
Boston Scientific Corp. (a) 80,400 994,950 10113710
Cardinal Distribution, Inc. 14,000 612,500 14148710
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES - CONTINUED
Dianon Systems, Inc. (a) 3,700 $ 22,200 25282610
Haemonetics Corp. (a) 29,500 700,625 40502410
Johnson & Johnson 147,800 6,447,775 47816010
McKesson Corp. 76 4,285 58155610
Medtronic, Inc. 62,800 4,851,300 58505510
PSICOR, Inc. (a) 300 3,488 74490110
Resound Corp. (a) 1,800 35,100 76119410
Sofamor/Danek Group, Inc. (a) 22,800 769,500 83400510
Zoll Medical Corp. (a) 4,600 144,900 98992210
14,586,623
MEDICAL FACILITIES MANAGEMENT - 1.4%
American Healthcorp, Inc. (a) 2,100 35,175 02649V10
Columbia Healthcare Corp. 45,600 1,322,400 19767910
GranCare, Inc. (a) 900 14,175 38518810
HCA Hospital Corporation of America
Class A (a) 19,400 572,300 40412010
HEALTHSOUTH Rehabilitation Corp. (a) 38,190 634,909 42192410
HealthTrust, Inc. - The Hospital Co. (a) 13,600 316,200 42221H10
Horizon Healthcare Corp. (a) 19,300 320,863 44042H10
Integrated Health Services, Inc. (a) 4,700 141,000 45812C10
Lincare Holdings, Inc. (a) 4,000 84,000 53279110
Manor Care, Inc. 13,150 277,794 56405410
PHP Healthcare Corp. (a) 24,700 157,463 69334410
Quantum Health Resources, Inc. (a) 10,100 303,000 74763L10
Summit Health Ltd. 32,900 250,863 86606410
U.S. Healthcare, Inc. 74,800 4,329,050 91191010
United HealthCare Corp. 20,000 1,445,500 91058110
10,204,692
TOTAL HEALTH 62,634,465
INDUSTRIAL MACHINERY & EQUIPMENT - 2.4%
ELECTRICAL EQUIPMENT - 1.9%
Antec Corp. (a) 19,600 539,000 03664P10
General Electric Co. 64,400 6,327,300 36960410
Gilat Satellite Networks (a) 800 12,000 40199892
Hutchison Whampoa Ltd. Ord. 855,000 3,431,158 44841510
Scientific-Atlanta, Inc. 60,000 1,882,500 80865510
Star Paging International Holdings Ltd. 2,240,000 978,666 85599692
Westinghouse Electric Corp. 10,000 140,000 96040210
13,310,624
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
Caterpillar, Inc. 23,200 1,977,800 14912310
Flow International Corp. (a) 37,200 299,925 34346810
Granite Industries BHD 194,000 1,114,856 38799522
3,392,581
POLLUTION CONTROL - 0.0%
Weston (Roy F.), Inc. Class A (a) 700 $ 6,038 96113710
TOTAL INDUSTRIAL MACHINERY
& EQUIPMENT 16,709,243
MEDIA & LEISURE - 5.9%
BROADCASTING - 1.5%
BET Holdings, Inc. Class A (a) 2,400 44,400 08658510
Broadcasting Partners, Inc. Class A (a) 1,900 30,163 11131910
CBS, Inc. 5,200 1,602,900 12484510
Comcast Corp. Class A (special) 58,800 1,999,200 20030020
Evergreen Media Corp. Class A (a) 1,700 28,900 30024810
Gaylord Entertainment Co. Class A 4,400 105,600 36790110
Grupo Televisa SA De CV ADR (a) (b) 17,400 1,026,600 40049J10
Jacor Communications, Inc. Class A (a) 15,100 215,175 46985840
Peoples Choice TV Corp. (a) 1,500 39,000 71084710
Tele-Communications, Inc. Class A (a) 58,900 1,774,363 87924010
Time Warner, Inc. 44,627 1,969,166 88731510
Turner Broadcasting System, Inc. Class B 35,100 851,175 90026250
Viacom, Inc. (a) 17,700 865,088 92552410
10,551,730
ENTERTAINMENT - 0.6%
Carnival Cruise Lines, Inc. Class A 42,700 2,044,263 14365810
Casino America, Inc. (a) 27,800 625,500 14757510
Disney (Walt) Co. 31,600 1,256,100 25468710
New Line Cinema Corp. (a) 2,600 60,125 64646510
Players International, Inc. (a) 24,000 582,000 72790310
4,567,988
LEISURE DURABLES & TOYS - 0.3%
Callaway Golf Co. 21,000 1,094,625 13119310
Champion Enterprises, Inc. (a) 11,300 209,050 15849610
Coachmen Industries, Inc. 1,200 16,800 18987310
Fleetwood Enterprises, Inc. 19,000 458,375 33909910
Nu-Kote Holding, Inc. Class A (a) 10,400 218,400 66993510
1,997,250
LODGING & GAMING - 1.9%
Argosy Gaming Corp. (a) 13,600 316,200 04022810
Caesars World, Inc. (a) 12,400 606,050 12769510
Circus Circus Enterprises, Inc. (a) 16,200 560,925 17290910
Gtech Holdings Corp. (a) 22,000 640,750 40051810
Hospitality Franchise Systems, Inc (a) 29,900 1,278,225 44091210
International Game Technology 38,900 1,176,725 45990210
Mirage Resorts, Inc. (a) 125,000 2,750,000 60462E10
President Riverboat Casinos, Inc. (a) 67,050 1,609,200 74084810
Promus Companies, Inc. (a) 85,800 3,625,050 74342A10
WMS Industries, Inc. (a) 28,800 928,800 92929710
13,491,925
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
MEDIA & LEISURE - CONTINUED
PUBLISHING - 0.2%
Ming Pao Enterprise Corp. Ltd. (a) 367,000 $ 448,962 60399392
Tribune Co. 9,700 540,775 89604710
Washington Post Co. Class B 1,400 331,800 93964010
1,321,537
RESTAURANTS - 1.4%
Applebee's International, Inc. 5,200 133,900 03789910
Back Bay Restaurant Group, Inc. (a) 11,900 187,425 05635V10
Bertucci's, Inc. (a) 24,800 508,400 08606310
Brinker International, Inc. 15,300 634,950 10964110
Cracker Barrel Old Country Store, Inc. 9,700 274,025 22410010
Lone Star Steakhouse Saloon (a) 43,100 1,029,013 54230710
McDonald's Corp. 102,900 6,032,513 58013510
Outback Steakhouse, Inc. (a) 4,200 138,600 68989910
Quantum Restaurant Group, Inc. (a) 8,300 87,150 74763T10
Sbarro, Inc. 13,600 571,200 80584410
9,597,176
TOTAL MEDIA & LEISURE 41,527,606
NONDURABLES - 2.4%
BEVERAGES - 0.9%
Coca-Cola Company (The) 87,000 3,675,750 19121610
Coca-Cola Femsa SA de CV sponsored ADR (a) 3,900 111,150 19124110
Dr. Pepper/Seven-Up Companies, Inc. (a) 5,300 120,575 25613130
Emvasa Del Valle de Enah Ord. (a) 30,600 123,272 29299E22
PepsiCo, Inc. 58,500 2,354,625 71344810
6,385,372
FOODS - 0.0%
Herdez SA de CV Class B (a) 104,400 105,311 42799F23
International Multifoods Corp. 2,000 45,250 46004310
150,561
HOUSEHOLD PRODUCTS - 0.8%
BeautiControl Cosmetics, Inc. 10,000 117,500 07465510
First Brands Corp. 23,000 787,750 31935610
Gillette Company 61,300 3,831,250 37576610
Safeskin Corp. (a) 2,900 44,950 78645410
Safety First, Inc. (a) 20,000 545,000 78647510
Stanhome, Inc. 200 6,650 85442510
5,333,100
TOBACCO - 0.7%
Philip Morris Companies, Inc. 76,800 4,291,200 71815410
RJR Nabisco Holdings Corp. (a) 117,800 765,700 74960K10
5,056,900
TOTAL NONDURABLES 16,925,933
RETAIL & WHOLESALE - 9.1%
APPAREL STORES - 1.8%
AnnTaylor Stores Corp. (a) 7,200 $ 180,900 03611510
Catherines Stores Corp. (a) 7,200 138,600 14916F10
Cato Corp. Class A 82,750 1,717,063 14920510
Charming Shoppes, Inc. 196,800 2,656,800 16113310
Chicos Fashion, Inc. (a) 50,000 1,725,000 16861510
Designs, Inc. (a) 28,650 465,563 25057L10
Filene's Basement Corp. (a) 37,100 431,288 31686610
Gap, Inc. 81,200 3,248,000 36476010
Genesco, Inc. (a) 900 5,288 37153210
Giordano Holdings Ltd. Ord. 82,000 44,319 37599592
Limited, Inc. (The) 86,200 1,961,050 53271610
One Price Clothing Stores, Inc. (a) 2,700 51,975 68241110
Ross Stores, Inc. (a) 1,500 26,813 77829610
Talbots, Inc. (a) 7,500 200,625 87416110
Urban Outfitters, Inc. (a) 400 11,900 91704710
12,865,184
GENERAL MERCHANDISE STORES - 4.0%
Caldor Corp. (a) 10,500 324,188 12878710
Consolidated Stores Corp. (a) 59,600 1,259,050 21014910
Dayton Hudson Corp. 57,100 4,075,513 23975310
Dillard Department Stores, Inc. Class A 36,600 1,509,750 25406310
Federated Department Stores, Inc. (a) 56,100 1,227,188 31410J10
Lechters, Inc. (a) 3,200 36,800 52323810
May Department Stores Co. (The) 46,300 1,961,963 57777810
Penney (J.C.) Co., Inc. 129,600 6,917,400 70816010
Price/Costco, Inc. 59,100 1,130,288 74143W10
Proffitts, Inc. (a) 26,500 768,500 74292510
Sears, Roebuck & Co. 83,900 4,562,063 81238710
Wal-Mart Stores, Inc. 136,700 3,913,038 93114210
27,685,741
GROCERY STORES - 0.0%
Dairy Farm International Holdings Ltd. Ord. 135,000 228,938 23385910
RETAIL & WHOLESALE, MISC - 3.3%
Bed, Bath & Beyond, Inc. (a) 28,500 926,250 07589610
Best Buy Co., Inc. (a) 6,450 320,888 08651610
Body Shop International PLC (a) 14,600 45,127 09679992
CML Group, Inc. 165,400 4,465,800 12582010
Eagle Hardware & Garden, Inc. (a) 55,300 1,562,225 26959B10
50-Off Stores, Inc. (a) 30,800 254,100 31681110
Futures Shops Ltd. 18,300 309,966 36091310
Good Guys, Inc. (a) 5,800 90,625 38209110
Home Depot, Inc. (The) 26,600 1,100,575 43707610
Little Switzerland, Inc. (a) 29,000 261,000 53752810
Lowe's Companies, Inc. 130,200 6,672,750 54866110
National Record Mart, Inc. (a) 13,000 92,625 63735510
Office Depot, Inc. (a) 156,200 4,978,875 67622010
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISC - CONTINUED
Sunglass Hut International, Inc. (a) 10,500 $ 315,000 86736F10
Toys "R" Us, Inc. (a) 41,000 1,670,750 89233510
23,066,556
TOTAL RETAIL & WHOLESALE 63,846,419
SERVICES - 0.9%
EDUCATIONAL SERVICES - 0.0%
Informatics Holdings Ltd. (a) 184,000 240,350 45699D22
LEASING & RENTAL - 0.7%
Blockbuster Entertainment Corp. (a) 111,100 3,707,963 09367610
Ryder Systems, Inc. 44,100 1,289,925 78354910
4,997,888
PRINTING - 0.1%
Reynolds & Reynolds Co. Class A 6,200 261,175 76169510
SERVICES - 0.1%
Health Care Services Group, Inc. (a) 12,600 127,575 42190610
Kelly Services, Inc. Class A 8,800 247,500 48815220
Oroamerica, Inc. (a) 9,800 137,200 68702710
TRO Learning, Inc. (a) 700 6,825 87263R10
519,100
TOTAL SERVICES 6,018,513
TECHNOLOGY - 23.8%
COMMUNICATIONS EQUIPMENT - 6.4%
ADC Telecommunications, Inc. (a) 25,800 890,100 00088610
Cabletron Systems, Inc. (a) 76,400 8,002,900 12692010
Centigram Communications Corp. (a) 49,500 1,485,000 15231710
Cisco Systems, Inc. (a) 185,400 10,428,750 17275R10
DSC Communications Corp. (a) 38,000 2,056,750 23331110
Data Race, Inc. (a) 400 4,200 23784210
Digital Systems International, Inc (a) 400 1,425 25391210
General Instrument Corp. (a) 40,000 2,135,000 37012110
Inter-Tel, Inc. (a) 5,500 51,563 45837210
Level One Communications, Inc. (a) 800 24,200 52729510
Newbridge Networks Corp. (a) 37,900 1,857,100 65090110
Octel Communications Corp. (a) 10,000 250,000 67572410
S Megga International 3,032,000 981,246 99999C92
Summa Four, Inc. (a) 3,900 125,775 86562810
3Com Corp. (a) 152,300 5,539,913 88553510
Teledata Communications Ltd. (a) 700 14,525 93799992
Tellabs, Inc. (a) 23,100 947,100 87966410
Union Switch and Signal, Inc. (a) 28,900 455,175 90857310
VMX, Inc. (a) 40,600 175,088 91827610
Wellfleet Communications, Inc. (a) 152,200 8,884,675 94949710
Xircom, Inc. (a) 20,000 300,000 98392210
44,610,485
COMPUTER SERVICES & SOFTWARE - 6.6%
Acclaim Entertainment, Inc. (a) 77,300 $ 1,893,850 00432520
Adobe Systems, Inc. 31,200 721,500 00724F10
Brock Control Systems, Inc. (a) 41,400 693,450 11162610
CUC International, Inc. (a) 184,700 6,164,363 12654510
Chipcom Corp. (a) 30,900 1,367,325 16961710
Compuware Corp. (a) 21,900 542,025 20563810
Davidson & Associates, Inc. (a) 300 6,600 23858810
ECI Telecom Ltd. 129,600 3,045,600 26825810
Electronic Arts (a) 81,900 2,856,263 28551210
Electronics For Imaging Incorporated (a) 8,100 147,825 28608210
Equifax, Inc. 2,300 55,488 29442910
FTP Software, Inc. (a) 1,000 24,250 30266010
IMRS, Inc. (a) 2,200 50,600 44969610
Intelligent Electronics, Inc. 89,800 2,402,150 45815710
Landmark Graphics Corp. (a) 3,600 71,100 51491310
Lotus Development Corp. (a) 88,400 4,066,400 54570010
MicroAge, Inc. (a) 3,700 134,125 59492810
Microsoft Corp. (a) 66,000 5,280,000 59491810
Netmanage, Inc. (a) 500 16,000 64114410
Novell, Inc. (a) 76,900 1,807,150 67000610
Oracle Systems Corp. (a) 223,800 7,077,675 68389X10
Parametric Technology Corp. (a) 105,700 4,043,025 69917310
Platinum Software Corp. (a) 300 6,900 72764R10
Recognition Equipment, Inc. (a) 26,900 437,125 75623110
Sterling Software, Inc. (a) 10,000 278,750 85954710
Stratacom, Inc. (a) 40,000 720,000 86268310
Structural Dynamics Research Corp. (a) 50,800 876,300 86355510
Sybase, Inc. (a) 25,400 939,800 87113010
Synopsys, Inc. (a) 11,500 520,375 87160710
Viewlogic Systems, Inc. (a) 4,400 101,200 92672110
46,347,214
COMPUTERS & OFFICE EQUIPMENT - 6.7%
ADAPTEC, Inc. (a) 5,300 175,563 00651F10
AST Research, Inc. (a) 104,300 2,555,350 00190710
Auspex Systems, Inc. (a) 800 7,200 05211610
Compaq Computer Corp. (a) 328,500 23,775,188 20449310
Creative Technologies Corp. (a) 42,400 1,123,600 22599992
Danka Business Systems PLC
sponsored ADR 8,000 271,000 23627710
Dell Computer Corporation (a) 115,600 3,135,650 24702510
Digital Biometrics, Inc. (a) 6,900 91,425 25383310
EMC Corp. (a) 112,900 3,584,575 26864810
International Business Machines Corp. 65,100 3,507,263 45920010
MICROS Systems, Inc. (a) 7,500 153,750 59490110
Media Vision Technology, Inc. (a) 84,300 3,287,700 58445H10
Netframe Systems, Inc. (a) 14,900 245,850 64110610
Quantum Corp. (a) 7,300 104,025 74790610
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Seagate Technology (a) 111,500 $ 2,703,875 81180410
Supermac Technology, Inc. (a) 4,700 62,276 86843310
SynOptics Communications, Inc. (a) 54,200 1,382,100 87160910
Tech Data Corp. (a) 37,700 1,131,000 87823710
47,297,390
ELECTRONIC INSTRUMENTS - 0.2%
Applied Materials, Inc. (a) 40,300 1,420,575 03822210
ELECTRONICS - 3.6%
Dovatron International, Inc. (a) 57,800 1,589,500 25985910
Intel Corp. 57,800 3,554,700 45814010
Micron Technology, Inc. 74,500 3,445,625 59511210
Motorola, Inc. 107,900 10,115,625 62007610
Sanmina Corp. (a) 40,500 1,042,875 80090710
Texas Instruments, Inc. 90,900 5,840,325 88250810
25,588,650
PHOTOGRAPHIC EQUIPMENT - 0.3%
Eastman Kodak Co. 35,500 2,161,063 27746110
TOTAL TECHNOLOGY 167,425,377
TRANSPORTATION - 3.0%
AIR TRANSPORTATION - 0.8%
AMR Corp. (a) 25,800 1,699,575 00176510
Comair Holdings, Inc. 25,300 777,975 19978910
East Asiatic Co. Hong Kong Ltd. 227,000 88,158 27099892
Mesa Airlines, Inc. (a) 27,500 460,625 59048110
Technology Resources (MLAY) (a) 519,000 2,130,376 93699692
UAL Corp. (a) 1,200 178,200 90254910
5,334,909
RAILROADS - 1.4%
CSX Corp. 48,700 4,042,100 12640810
Chicago & North Western Holdings Corp. (a) 41,100 976,125 16715510
Conrail, Inc. 81,000 5,052,375 20836810
10,070,600
SHIPPING - 0.0%
Overseas Shipholding Group, Inc. 200 4,300 69036810
Shun Tak Holdings Ltd. 166,000 191,254 82799192
Transportacion Maritima Mexicana SA
de CV sponsored ADR Class A 14,000 136,500 89386830
332,054
TRUCKING & FREIGHT - 0.8%
Arkansas Best Corp. 5,000 $ 66,875 04079010
Federal Express Corp. (a) 75,700 5,412,550 31330910
Landstar System, Inc. (a) 8,800 159,500 51509810
5,638,925
TOTAL TRANSPORTATION 21,376,488
UTILITIES - 4.9%
CELLULAR - 1.2%
A Plus Communications, Inc. (a) 1,000 14,750 00193410
Arch Communications Group, Inc. (a) 63,600 874,500 03938110
Century Telephone Enterprises, Inc. 3,000 73,125 15668610
Dial Page, Inc. (a) 3,100 125,550 25247P10
IDB Communications Group, Inc. (a) 30,900 1,382,775 44935510
McCaw Cellular Communications, Inc.
Class A (a) 16,300 835,375 57946810
Metrocall, Inc. (a) 4,900 88,200 59164710
Mobile Telecommunications
Technologies, Inc. (a) 52,800 1,339,800 60740610
Nationwide Cellular Service, Inc. (a) 2,300 32,775 63859510
Nextel Communications, Inc. Class A 8,200 309,550 65332V10
Paging Network, Inc. (a) 79,350 2,281,313 69554210
Rogers Cantel Mobile Communications, Inc.
Class B (non-vtg.) (a) 31,700 795,021 77510210
United States Cellular Corp. (a) 7,800 242,775 91168410
8,395,509
ELECTRIC UTILITY - 0.2%
Consolidated Electric Power Asia Ltd.
sponsored ADR 16,000 259,252 20855210
Hong Kong Electric Holdings Ord. 314,000 1,060,921 43858010
Korea Electric Power Corp. 6,000 144,784 50099B92
1,464,957
TELEPHONE SERVICES - 3.5%
ALC Communications Corp. (a) 123,100 3,292,925 00157530
ALLTEL Corp. 6,700 172,525 02003910
American Telephone & Telegraph Co. 25,100 1,371,088 03017710
Ameritech Corp. 45,100 3,450,150 03095410
Bell Atlantic Corp. 7,800 468,000 07785310
BellSouth Corp. 11,100 634,088 07986010
Davel Communications Group, Inc. (a) 1,000 15,250 23833810
LCI International, Inc. (a) 36,100 1,191,300 50181310
MCI Communications Corp. 47,400 1,155,375 55267310
NYNEX Corp. 30,200 1,287,275 67076810
Pacific Telesis Group 15,100 856,925 69489010
Southwestern Bell Corp. 76,500 3,251,250 84533310
Sprint Corporation 133,400 4,368,850 85206110
VALUE
SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
Telebras "PN" (Pfd. Reg.) 44,000,000 $ 1,545,720 95499792
Telecom Argentina Stet France (a) 39,500 186,031 90899992
Telefonica Argentina Class B (a) 48,600 264,927 87999D92
Telefonos de Mexico SA sponsored ADR
representing share Ord. Class L 8,200 457,150 87940378
US Long Distance Corp. (a) 22,500 376,875 91191220
24,345,704
TOTAL UTILITIES 34,206,170
TOTAL COMMON STOCKS
(Cost $554,638,708) 584,625,895
MATURITY
AMOUNT
REPURCHASE AGREEMENTS - 17.0%
Investments in repurchase agreements,
(U.S. Treasury obligations), in a joint
trading account at 3.24% dated
11/30/93 due 12/01/93 $ 119,682,770 119,672,000
TOTAL INVESTMENT in securities - 100%
(Cost $674,310,708) $ 704,297,895
LEGEND:
(a) Non-income producing
(b) 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 $1,970,663 or 0.3% of net
assets.
INCOME TAX INFORMATION:
At November 30, 1993, the aggregate cost of investment securities for
income tax purposes was $676,650,525. Net unrealized appreciation
aggregated $27,647,370, of which $46,892,646 related to appreciated
investment securities and $19,245,276 related to depreciated investment
securities.
The fund hereby designates $6,269,000 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, 1993
ASSETS
Investment in securities, at value (including repurchase agreements of $119,672,000)
(cost $674,310,708) (Notes 1 $ 704,297,895
and 2) - See accompanying schedule
Cash 929
Receivable for investments sold 13,433,399
Receivable for fund shares sold 6,136,999
Dividends receivable 852,175
Other receivables 38,909
Total assets 724,760,306
LIABILITIES
Payable for investments purchased $ 47,700,055
Payable for fund shares redeemed 1,708,556
Accrued management fee 359,173
Distribution fees payable (Note 4) 197,290
Other payables and accrued expenses 345,361
Total liabilities 50,310,435
NET ASSETS $ 674,449,871
Net Assets consist of:
Paid in capital $ 592,017,190
Undistributed net investment income 1,328,949
Accumulated undistributed net realized gain (loss) on investments 51,116,545
Net unrealized appreciation (depreciation) on investment securities 29,987,187
NET ASSETS $ 674,449,871
CALCULATION OF MAXIMUM OFFERING PRICE $29.74
INSTITUTIONAL CLASS
NET ASSET VALUE, offering price and
redemption price per share
($296,465,564 (divided by) 9,968,673 shares)
RETAIL CLASS $29.50
NET ASSET VALUE, and redemption price
per share ($377,984,307 (divided by)
12,811,811 shares)
Maximum offering price per share (100/95.25 of $29.50) $30.97
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Year Ended November 30, 1993
INVESTMENT INCOME $ 3,957,841
Dividends
Interest 2,477,445
Total income 6,435,286
EXPENSES
Management fee (Note 4) $ 2,646,631
Transfer agent fees (Note 4) 324,822
Institutional Class
Retail Class 647,152
Distribution fees - Retail Class (Note 4) 1,141,854
Accounting fees and expenses (Note 4) 234,813
Non-interested trustees' compensation 2,385
Custodian fees and expenses 102,433
Registration fees 108,605
Institutional Class
Retail Class 137,722
Audit 40,609
Legal 19,336
Miscellaneous 8,481
Total expenses before reductions 5,414,843
Expense reductions (Note 5) (39,081) 5,375,762
Net investment income 1,059,524
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 3) 37,971,228
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on investment securities 9,616,597
Net gain (loss) 47,587,825
Net increase (decrease) in net assets resulting from operations $ 48,647,349
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED NOVEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 1993 1992
Operations $ 1,059,524 $ 944,099
Net investment income
Net realized gain (loss) on investments 37,971,228 4,806,695
Change in net unrealized appreciation (depreciation) on investments 9,616,597 17,029,147
Net increase (decrease) in net assets resulting from operations 48,647,349 22,779,941
Distributions to shareholders from:
Net investment income
Institutional Class (658,156) (91,191)
Retail Class (91,782) -
Net realized gain
Institutional Class (3,309,453) (8,130,245)
Retail Class (624,995) -
Share transactions - net increase (decrease) (Note 6) 428,507,160 118,655,000
Total increase (decrease) in net assets 472,470,123 133,213,505
NET ASSETS
Beginning of period 201,979,748 68,766,243
End of period (including undistributed net investment income of $1,328,949 and
$1,019,363, respectively) $ 674,449,871 $ 201,979,748
</TABLE>
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 1993
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Equity Portfolio Growth (the fund) is a fund of Fidelity
Advisor Series I (the trust) (formerly Fidelity Broad Street 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 fund offers both Institutional Class and Retail Class shares which have
equal rights as to earnings, assets and voting privileges except that each
class bears different distribution and transfer agent expenses and certain
registration fees. Each class has exclusive voting rights with respect to
its distribution plans.
The following summarizes the significant accounting policies of the fund:
ALLOCATED EARNINGS AND EXPENSES. Investment income, expenses (other than
expenses incurred under each class's Distribution and Service Plans,
Transfer Agent Agreements and certain registration fees) and realized and
unrealized gains or losses on investments are allocated to each class of
shares based upon their relative net assets.
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 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.
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.
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED
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 (the 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.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $917,420,702 and $544,666,908, 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 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 .33%.
For the period, the management fee was equivalent to an annual rate of
.66% of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200%. Effective November 1, 1993, 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, the
Retail Class pays Fidelity Distributors Corporation (FDC), an affiliate of
FMR, a distribution and service fee that is based on an annual rate of .65%
of its average net assets. For the period, the Retail Class paid FDC
$1,141,854 of which $883,141 was paid to securities dealers, banks and
other financial institutions for selling shares of the Retail Class and
providing shareholder support services.
In addition, FMR or FDC may use its 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 $11,557 for the
period.
SALES LOAD. FDC received sales charges for selling shares of the Retail
Class. The sales charge rates ranged from 2.00% to 4.75% based on purchase
amounts of less than $1,000,000. Purchase amounts of $1,000,000 or more are
not charged a sales load. For the period, FDC received $10,102,208 of which
$8,579,172 was paid to securities dealers, banks and other financial
institutions.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEE. Fidelity Investments Institutional Operations Company
(FIIOC), an affiliate of FMR, and State Street Bank and Trust Company
(State Street) are the transfer, dividend disbursing and shareholder
servicing agents for the Institutional Class and Retail Class,
respectively. Under revised fee schedules which became effective January 1,
1993, FIIOC and State Street receive fees based on the type, size, number
of accounts and the number of transactions made by shareholders. FIIOC, on
behalf of State Street, also collects fees from the fund and pays State
Street for its services. FIIOC pays for typesetting, printing and mailing
of all shareholder reports, except proxy statements.
ACCOUNTING FEE. Fidelity Service Co. (FSC), 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.
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 $362,158 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
$39,081 under this arrangement.
6. SHARE TRANSACTIONS.
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.
Share transactions for both classes were as follows:
SHARES DOLLARS
YEARS ENDED NOVEMBER 30, YEARS ENDED NOVEMBER 30,
1993 1992 (A) 1993 1992 (A)
INSTITUTIONAL CLASS
Shares sold 7,349,367 7,045,209 $ 209,624,041 $ 171,212,032
Reinvestment of distributions from net investment income 10,955 2,043
288,338 46,447
Reinvestment of distributions from capital gains 66,700 207,570
1,755,818 4,797,374
Shares redeemed (4,257,621) (3,288,083) (120,643,846) (78,651,077)
Net increase (decrease) 3,169,401 3,966,739 $ 91,024,351 $ 97,404,776
RETAIL CLASS
Shares sold 14,584,330 903,737 $ 412,419,636 $ 22,359,351
Reinvestment of distributions from net investment income 2,639 - 69,378
- -
Reinvestment of distributions from capital gains 18,819 - 494,812 -
Shares redeemed (2,654,268) (43,446) (75,501,017) (1,109,127)
Net increase (decrease) 11,951,520 860,291 $ 337,482,809 $ 21,250,224
(a) Share transactions for the Retail Class are for the period September
10, 1992 (commencement of sale of shares) to November 30, 1992.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Advisor Series I (formerly Fidelity Broad
Street Trust) and the Shareholders of Fidelity Advisor Equity Portfolio
Growth:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series I: Fidelity Advisor Equity Portfolio Growth,
including the schedule of portfolio investments, as of November 30, 1993,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the
period then ended (Institutional Class) and for the year ended November 30,
1993 and for the period September 10, 1992 (commencement of sale of Retail
Class shares) to November 30, 1992 (Retail Class). These financial
statements and financial highlights are the responsibility of the fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of November 30, 1993, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series I: Fidelity Advisor Equity Portfolio Growth as
of November 30, 1993, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years
in the period then ended (Institutional Class) and for the year ended
November 30, 1993 and for the period September 10, 1992 (commencement of
sale of Retail Class shares) to November 30, 1992 (Retail Class), in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND
Boston, Massachusetts
January 7, 1994
DISTRIBUTIONS
The Board of Trustees of Fidelity Advisor Equity Portfolio Growth 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, and dividends derived from net investment income:
Institutional Class:
Pay Date Record Date Dividends Capital Gains
12/20/93 12/17/93 $0.11 $1.34
1/10/94 1/7/94 - .11
Retail Class:
Pay Date Record Date Dividends Capital Gains
12/20/93 12/17/93 - $1.34
1/10/94 1/7/94 - .11
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Robert E. Stansky, 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 Investments Institutional
Operations Company
Boston, MA
CUSTODIAN
The Chase Manhattan Bank, N.A.
New York, NY
DESIGNED FOR
YOU AND YOUR
INVESTMENT PROFESSIONAL
IN TODAY'S FAST-PACED MARKETS, PRUDENT,
INFORMED DECISIONS ARE THE KEY TO SUCCESSFUL
INVESTING. THE FIDELITY ADVISOR FUNDS PUT THE
RESOURCES OF ONE OF THE WORLD'S LARGEST MUTUAL
FUND MANAGERS AT THE SERVICE OF THE
INVEST-MENT PROFESSIONAL YOU HAVE CHOSEN TO
HELP YOU MAKE FINANCIAL DECISIONS. WE BELIEVE
YOUR INVESTMENT
PORTFOLIO AND YOUR INVESTMENT
RESULTS COULD BE STRONGER WITH THE PARTNERSHIP
OF FIDELITY(Registered trademark) AND YOUR INVESTMENT PROFESSIONAL.
EQUITY
PORTFOLIO
GROWTH
ANNUAL REPORT
NOVEMBER 30, 1993
(Registered trademark)
Fidelity Distributors Corporation
82 Devonshire Street
Boston, MA 02109
(Registered trademark)
AEPGR-194A
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. Remember to contact your investment professional if you need help
with your investments.
Wishing you a prosperous new year,
Edward C. Johnson 3d, Chairman
PERFORMANCE UPDATE
$10,000 OVER TEN YEARS
$45,313
$39,547
$10,000 OVER TEN YEARS: LET'S SAY YOU INVESTED $10,000 IN FIDELITY ADVISOR
EQUITY PORTFOLIO GROWTH (RETAIL CLASS) ON NOVEMBER 30, 1983 AND PAID THE
MAXIMUM 4.75% SALES CHARGE. BY NOVEMBER 30, 1993, THE VALUE OF YOUR
INVESTMENT WOULD HAVE GROWN TO $45,313 - A 353.13% INCREASE ON YOUR INITIAL
INVESTMENT. FOR COMPARISON, LOOK AT HOW A $10,000 INVESTMENT IN THE S&P
500 (WITH DIVIDENDS REINVESTED) DID OVER THE SAME PERIOD. IT WOULD HAVE
GROWN TO $39,547 - A 295.47% INCREASE.
CUMULATIVE TOTAL RETURNS
FOR THE PERIOD ENDED NOVEMBER 30, 1993
One Five Ten
Year Years Years
ADVISOR EQUITY
PORTFOLIO GROWTH
(RETAIL CLASS) 14.52% 227.08 375.73
% %
S&P 500(Registered trademark) 10.10% 98.31 295.47
% %
AVERAGE ANNUAL TOTAL RETURNS
FOR THE PERIOD ENDED NOVEMBER 30, 1993
One Five Ten
Year Years Years
ADVISOR EQUITY
PORTFOLIO GROWTH
(RETAIL CLASS) 9.08% 25.52% 16.31%
S&P 500(Registered trademark) 10.10% 14.67% 14.74%
ON SEPTEMBER 10, 1992, THE FUND COMMENCED SALES OF RETAIL CLASS SHARES. ALL
PERFORMANCE INFORMATION PRIOR TO SEPTEMBER 10, 1992 DOES NOT REFLECT RETAIL
CLASS' 12B-1 FEE AND REVISED TRANSFER AGENT FEE ARRANGEMENTS, WHICH IF
INCLUDED, WOULD LOWER RETAIL CLASS' PERFORMANCE.
TOTAL RETURNS INCLUDE CHANGES IN SHARE PRICE, AND REINVESTMENT OF DIVIDENDS
AND CAPITAL GAINS. CUMULATIVE TOTAL RETURNS DO NOT REFLECT THE RETAIL
CLASS' MAXIMUM 4.75% SALES CHARGE WHICH, IF INCLUDED, WOULD HAVE RESULTED
IN RETURNS OF 9.08% FOR ONE YEAR, 211.55% FOR FIVE YEARS, AND 353.13% FOR
TEN YEARS. AVERAGE ANNUAL TOTAL RETURNS ARE LOAD ADJUSTED. FIGURES FOR
MORE THAN ONE YEAR ASSUME A STEADY COMPOUNDED RATE OF RETURN AND ARE NOT
THE FUND'S YEAR-BY-YEAR RESULTS, WHICH FLUCTUATED OVER THE PERIODS SHOWN.
FIGURES FOR THE S&P 500, AN UNMANAGED INDEX OF COMMON STOCK PRICES,
INCLUDE REINVESTMENT OF DIVIDENDS. S&P 500 IS A REGISTERED TRADEMARK OF
STANDARD & POOR'S CORPORATION.
FOR THE PERIOD ENDED NOVEMBER 30, 1993, FIDELITY ADVISOR INSTITUTIONAL
EQUITY PORTFOLIO GROWTH (INSTITUTIONAL CLASS) SHARES' CUMULATIVE TOTAL
RETURNS WERE 15.36%, 229.98%, AND 379.94% FOR ONE YEAR, FIVE YEARS, AND TEN
YEARS, RESPECTIVELY. FOR THE PERIOD ENDED NOVEMBER 30, 1993, INSTITUTIONAL
CLASS SHARES' AVERAGE ANNUAL TOTAL RETURNS WERE 15.36%, 26.97%, AND 16.98%
FOR ONE YEAR, FIVE YEARS, AND TEN YEARS, RESPECTIVELY.
ALL PERFORMANCE NUMBERS ARE HISTORICAL; THE FUND'S SHARE PRICE AND RETURN
WILL VARY AND YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES.
AN INTERVIEW WITH
ROBERT STANSKY,
PORTFOLIO MANAGER OF
FIDELITY ADVISOR EQUITY PORTFOLIO GROWTH
WE'VE PROVIDED THE FOLLOWING MARKET RECAP AS CONTEXT FOR THE MANAGER'S
INTERVIEW:
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.
Q. BOB, HOW HAS THE FUND PERFORMED?
A. The fund's total return for the year ended November 30, 1993, was
14.52%. That compared to 9.30% for the average growth fund tracked by
Lipper Analytical Services.
Q. WHAT HELPED THE FUND TOP THE AVERAGE?
A. I believe stock prices follow earnings, and the fund did well to the
extent that I was able to find companies that were growing earnings within
their given industries. That said, this past year has not been without its
challenges. We've seen the stocks of many growth companies take on rather
high price-to-earnings ratios, or valuations. This year, many stocks with
p/e ratios high enough to scare any fund manager just kept on performing
well. That made it more difficult to determine whether a particular stock's
price was so high relative to earnings that it couldn't rise much more.
It's very tough to hold on to or buy more of a stock that's on the way up;
most people want to sell and take their profits. In part, we beat the
average by sticking with rising stocks of companies that were growing
earnings, even if these stocks were expensive.
Q. LET'S GET SPECIFIC. WHERE DID YOU FIND THE TOP PERFORMERS?
A. Mostly in the technology sector - 23.8% of the fund on November 30. This
was the group of companies that showed the strongest earnings growth this
year, with the sector up over 13% in 1993, through November. Investors
wanted to know who had the new product on the market and was selling a lot
of them. For example, Compaq remained one the fund's top investments over
the last six months. The personal computer market is adding roughly 40
million units a year and Compaq is gaining market share. Profitability is
improving and the company appears to have the right products at the right
price. The price of Compaq's stock ended May at $57.88 and had risen to
$72.38 by the end of November. Motorola was the fund's fourth largest
investment as of November 30. Here's a well-positioned company in two
attractive industries - semi-conductors and communications equipment, both
of which were among the market leaders this year. Motorola has been
increasing its earnings and seems poised to benefit from the technology
boom in this country. So far, it performed well in the late summer and
early fall, before dropping slightly in November.
Q. HAVEN'T MANY TECHNOLOGY STOCKS DROPPED IN PRICE LATELY?
A. Yes, it's true as a whole they've fallen off somewhat, especially as
some investors have taken profits. However, it's not unusual for the sector
to be very volatile; a stock rising strongly one minute can be perceived as
overpriced and subject to heavy selling the next. Recently questionable
business prospects within some of these companies also caused their stocks
to lose favor. For example, Microsoft is a stock I sold in early summer
because I had doubts about the company's near-term earnings potential,
given its valuation. After its price dropped in the fall, it began to look
more attractive and I began buying again. I have to be very careful with
technology stocks but I like their long-term prospects.
Q. WHERE ELSE DID YOU FIND INVESTING OPPORTUNITIES?
A. Financial stocks - the fund's second largest sector investment at 9.9% -
performed well for part of the year before prices edged back down.
Brokerage companies provided some strong gains. For example, Merrill
Lynch's stock rose roughly 30% from May through October. In addition, the
fund had 9% of its investments in retail stocks at the end of November.
This sector has had a rough year, but a handful of stocks have done well.
J.C. Penney was the fund's biggest retail holding during many of the last
six months. I am much more apt to own a specialty retailer than a large
department store, but few specialty stores did well this year. Lately,
Penney's has done a good job with its private label merchandise. Its
catalogue sales also have been strong. In addition, auto stocks - namely,
Ford and Chrysler - have been steady performers.
Q. AREN'T AUTO COMPANIES CONSIDERED CYCLICAL STOCKS, OR THOSE THAT TEND TO
RISE AND FALL IN TANDEM WITH THE ECONOMY?
A. Traditionally, yes. But if you were to cover up the names and strictly
look at Chrysler's or Ford's business fundamentals, you'd think they were
growth stocks. Chrysler, in particular, has shown strong earnings momentum
over the last few quarters. In business terms, they're seeing "unit
growth," which simply means they're selling more cars. That makes these
investments consistent with the fund's goal of buying stocks of companies
whose earnings are growing faster than the market average.
Q. ANY DISAPPOINTMENTS?
A. Always. Casino stocks come to mind this time. Many had big gains this
year as more states and localities legalized casino gambling as a way to
boost their economies. In hindsight, investing more heavily in casinos
could have provided the fund with a stronger return. Companies that
specialize in riverboat gambling did especially well.
Q. WHAT'S YOUR VIEW OF THE NEXT SIX MONTHS?
A. Because so many stocks now carry prices that are high relative to
earnings, I'll have to be choosy in the months ahead. Stocks that seem like
sure bets are becoming very scarce. I don't like to make predictions
concerning which way the market will go. But I think it'll be an
environment in which the art of picking successful stocks and avoiding the
losers will be much more of a factor in success than market or economic
conditions. I always have to watch the economy closely, but I'm more
concerned with the business fundamentals of the individual companies whose
stocks I buy. These growth companies are always out there. If I can find
them with consistency, the fund should continue to do well over the long
run. But investors need to remember that any interim period can be rocky.
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCK HOLDINGS AS OF NOVEMBER 30, 1993
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Compaq Computer Corp. 3.4 2.2
Chrysler Corp. 1.5 1.3
Cisco Systems, Inc. 1.5 2.8
Motorola, Inc. 1.4 0.7
Pfizer, Inc. 1.3 0.6
Wellfleet Communication, Inc. 1.3 0.3
Cabletron Systems, Inc. 1.1 0.2
Oracle Systems Corp. 1.0 0.3
Penney (J.C.), Inc. 1.0 0.9
Ford Motor Co. 1.0 1.3
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN INDUSTRIES AS OF NOVEMBER 30, 1993
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Technology 23.8 27.2
Finance 9.9 13.2
Retail and Wholesale 9.1 9.8
Health 8.9 6.3
Media and Leisure 5.9 4.7
Utilities 4.9 3.7
Durables 4.5 4.2
Transportation 3.0 2.8
Energy 2.8 2.8
Nondurables 2.4 0.2
</TABLE>
FIDELITY ADVISOR EQUITY PORTFOLIO GROWTH
INVESTMENTS/NOVEMBER 30, 1993
(Showing Percentage of Total Value of Investment in Securities)
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - 83.0%
AEROSPACE & DEFENSE - 0.1%
AEROSPACE & DEFENSE - 0.0%
Orbital Sciences Corporation (a) 7,400 $ 133,200 68556410
DEFENSE ELECTRONICS - 0.1%
General Motors Corp. 17,100 904,163 37044210
Nichols Research Corp. (a) 5,000 65,000 65381810
969,163
TOTAL AEROSPACE & DEFENSE 1,102,363
BASIC INDUSTRIES - 1.3%
CHEMICALS & PLASTICS - 0.0%
GEON 7,900 181,700 37246W10
Raychem Corp. 1,800 66,472 75460310
248,172
IRON & STEEL - 0.3%
Compania Siderurgica Nacional (a) 29,733,100 642,532 24499523
LTV Corp. (a) 52,800 765,600 50192110
USX-U.S. Steel Group 300 10,800 90337T10
Wheeling Pittsburgh Corp. (a) 37,700 622,050 96314210
2,040,982
PAPER & FOREST PRODUCTS - 1.0%
Caraustar Industries, Inc. 4,300 73,100 14090910
Georgia-Pacific Corp. 20,700 1,521,450 37329810
International Paper Co. 66,100 4,412,164 46014610
Pope & Talbot, Inc. 3,500 95,375 73282710
Smurfit (Jeff) Group PLC (U.K.) 49,600 195,319 84699793
Temple-Inland, Inc. 8,500 430,313 87986810
6,727,721
TOTAL BASIC INDUSTRIES 9,016,875
CONGLOMERATES - 1.2%
Citic Pacific Ltd. Ord. 72,000 188,276 45299792
First Pacific Co. Ltd. 460,000 226,283 33699192
Grupo Carso SA de CV Class A-1 218,600 1,930,336 40099594
Jardine Matheson & Co. Ltd. Ord. 196,158 1,663,259 47111510
United Technologies Corp. 73,100 4,523,063 91301710
8,531,217
CONSTRUCTION & REAL ESTATE - 1.9%
BUILDING MATERIALS - 0.5%
Armstrong World Industries, Inc. 21,900 1,004,663 04247610
Cementos Apasco SA de CV Class A 30,200 255,000 15299392
Cemex SA, Series B (a) 53,600 1,395,753 15299293
Lafarge Corp. 700 14,000 50586210
Tolmex B2 SA (a) 43,800 519,462 94399492
3,188,878
CONSTRUCTION - 0.6%
Bufete Industrial SA sponsored ADR
representing 3 ordinary certificate Banco (a) 18,800 $ 521,700 11942H10
Centex Corp. 47,900 1,880,075 15231210
Ekran Berhad Ord. (a) 81,000 427,482 28299792
Empresas Ica Sociedad Controladora SA
de CV sponsored ADR representing Ord.
Participation Certificate 4,800 116,400 29244810
Kaufman & Broad Home Corp. 2,100 42,263 48616810
Lennar Corp. 12,600 374,850 52605710
Pulte Corp. 14,600 540,200 74586710
Redman Industries (a) 8,400 132,300 75764210
Schuler Homes, Inc. (a) 10,000 246,250 80818810
Schult Homes Corp. 6,500 89,375 80819510
4,370,895
ENGINEERING - 0.2%
Glenayre Technologies, Inc. 40,600 1,583,400 37789910
REAL ESTATE - 0.2%
Hon Kwok Land Investment Ltd. Ord 488,000 221,108 43899192
Hovnanian Enterprises, Inc. Class A (a) 2,000 31,250 44248720
Sun Hung Kai Properties Ltd. 223,300 1,387,530 86676H10
1,639,888
REAL ESTATE INVESTMENT TRUSTS - 0.4%
Crown American Realty Trust (SBI) 19,400 315,250 22818610
Developers Diversified Realty 8,700 234,900 25159110
Duke Realty Investors, Inc. 34,200 769,500 26441150
Equity Residential Properties Trust (SBI) 17,900 581,750 29476L10
Excel Realty Trust, Inc. 2,800 53,200 30067R10
Horizon Outlet Centers, Inc. (a) 1,200 29,100 44043K10
LTC Properties, Inc. 1,800 22,950 50217510
Manufactured Home Community 13,100 522,363 56468210
McArthur/Glen Realty Corp. (a) 400 9,500 57918810
Property Trust of America (SBI) 7,300 136,875 74344510
United Dominion Realty Trust, Inc 5,100 70,125 91019710
Vornado Realty Trust 9,200 342,700 92904210
3,088,213
TOTAL CONSTRUCTION & REAL ESTATE 13,871,274
DURABLES - 4.5%
AUTOS, TIRES, & ACCESSORIES - 3.3%
Autozone, Inc. (a) 53,900 2,991,450 05333210
Chrysler Corp. 206,000 10,866,500 17119610
Dana Corp. 7,900 432,525 23581110
Discount Auto Parts, Inc. (a) 11,300 281,088 25464210
Echlin, Inc. 23,800 788,375 27874910
Federal-Mogul Corp. 28,900 744,175 31354910
Ford Motor Co. 112,500 6,834,375 34537010
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES - CONTINUED
Grupo Dina (Consorcio G) ADR (a) 11,100 $ 244,200 21030610
Lund International Holdings, Inc. (a) 3,600 66,600 55036810
O'Reilly Automotive, Inc. (a) 400 11,000 68609110
23,260,288
CONSUMER ELECTRONICS - 0.4%
Fossil, Inc. (a) 24,400 469,700 34988210
Harman International Industries, Inc. (a) 13,300 319,200 41308610
Newell Co. 16,700 672,175 65119210
Universal Electronics, Inc. (a) 31,900 805,475 91348310
Whirlpool Corp. 11,500 682,813 96332010
2,949,363
HOME FURNISHINGS - 0.2%
Ethan Allen Interiors, Inc. (a) 24,300 643,950 29760210
Haverty Furniture Companies, Inc. 21,000 351,750 41959610
Levitz Furniture, Inc. (a) 18,100 257,925 52748210
Rhodes, Inc. (a) 4,700 65,800 76235P10
Stanley Furniture (a) 8,200 86,100 85430520
1,405,525
TEXTILES & APPAREL - 0.6%
Justin Industries, Inc. 11,900 162,138 48217110
Mohawk Industries, Inc. (a) 14,600 438,000 60819010
NIKE, Inc. Class B 15,100 722,913 65410610
Nine West Group, Inc. (a) 31,800 1,045,425 65440D10
Reebok International Ltd. 40,500 1,235,250 75811010
Stride Rite Corp. 10,800 199,800 86331410
Wolverine World Wide, Inc. 10,900 316,100 97809710
4,119,626
TOTAL DURABLES 31,734,802
ENERGY - 2.8%
ENERGY SERVICES - 0.6%
Halliburton Co. 45,000 1,389,375 40621610
Rowan Companies, Inc. (a) 7,500 63,750 77938210
Schlumberger Ltd. 50,500 2,903,750 80685710
4,356,875
OIL & GAS - 2.2%
Anadarko Petroleum Corp. 38,500 1,535,188 03251110
Anderson Exploration Ltd. (a) 42,700 931,041 03390110
Archer Resources Ltd. (a) 22,700 271,907 03950K10
British Petroleum PLC ADR 44,300 2,624,775 11088940
Burlington Resources, Inc. 54,500 2,452,500 12201410
Canadian Natural Resources Ltd. (a) 45,900 558,394 13638510
Chauvco Resources Ltd. Class A (a) 25,600 301,853 16260010
Cross Timbers Oil Co. 2,400 $ 34,200 22757310
Elan Energy, Inc. (a) 26,700 189,893 28390410
Encal Energy Ltd. (a) 120,800 402,440 29250D10
Enron Oil & Gas Co. 20,800 803,400 29356210
Excel Energy, Inc. (a) 44,700 188,237 30065410
Intensity Resources Ltd. (a) 35,300 62,104 45816E10
Inverness Petroleum Ltd. (a) 18,500 148,886 46190810
Louis Dreyfus Natural Gas Corp. (a) 12,600 218,925 54601110
Murphy Oil Corp. 3,800 152,475 62671710
Newfield Exploration Co. (a) 3,100 50,763 65129010
Noble Affiliates, Inc. 1,500 37,125 65489410
Northrock Resources Ltd. (a) 29,200 163,953 66679810
Parker & Parsley Petroleum Co. 2,700 55,350 70101810
Petromet Resources Ltd. Ord. (a) 73,000 321,074 71673110
Pinnacle Resources Ltd. (a) 28,900 405,671 72348R10
Renaissance Energy Ltd. (a) 2,100 42,055 75966610
Rio Alto Exploration Ltd. (a) 132,200 742,279 76689210
Summit Resources Ltd. 95,300 624,275 86624610
Tarragon Oil & Gas Ltd. (a) 116,600 1,363,934 87629E20
Unocal Corp. 5,000 135,625 91528910
YPF Sociedad Anonima sponsored ADR
representing Class D shares 34,300 848,925 98424510
15,667,247
TOTAL ENERGY 20,024,122
FINANCE - 9.9%
BANKS - 5.2%
Advanta Corp. 26,400 1,016,400 00794210
AmSouth Bancorporation 7,050 207,975 03216510
Banacci SA de CV Class C 62,800 468,536 06399893
Bank of Boston Corp. 56,879 1,237,118 06071610
Bank of New York Co., Inc. 53,300 2,958,150 06405710
BanPonce Corp. 10,800 321,300 06670410
Chase Manhattan Corp. 100 3,350 16161010
Citicorp (a) 141,600 173034105,026,800
First Chicago Corp. 4,132 170,962 31945510
First Fidelity Bancorporation 10,983 459,913 32019510
First Interstate Bancorp 82,800 4,833,450 32054810
First Union Corp. 70,424 2,860,975 33735810
Fleet Financial Group, Inc. 72 2,178 33891510
Grupo Financiero Bancomer SA de CV
sponsored ADR, Series C (b) 26,500 944,063 40048610
HSBC Holdings PLC 147,099 1,628,129 42199192
Mellon Bank Corp. 71,562 3,971,692 58550910
Mercantile Bancorporation, Inc. 6,500 286,000 58734210
NationsBank Corp. 53,228 2,508,370 63858510
Norwest Corp. 18,400 420,900 66938010
Shawmut National Corp. 98,300 2,052,013 82048410
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
FINANCE - CONTINUED
BANKS - CONTINUED
Signet Banking Corp. 159,332 $ 5,138,457 82668110
Westpac Banking Corp. 69,688 195,224 96121410
36,711,955
CREDIT & OTHER FINANCE - 2.0%
American Express Co. 41,500 1,302,063 02581610
American Residential Holdings Corp. (a) 17,300 307,075 02926R10
Argentaria Corp. Bancaria de Esp (a) 3,800 162,375 21991392
Beneficial Corp. 13,500 995,625 08172110
Credit Acceptance Corp. (a) 7,200 243,000 22531010
Dean Witter Discover & Co. 92,854 3,528,452 24240V10
First USA, Inc. 43,000 1,279,250 33743H10
GFC Financial Corp. 900 24,300 36160910
Green Tree Acceptance, Inc. 57,200 2,817,100 39350510
Household International, Inc. 98,688 3,256,704 44181510
JCG Holdings 262,000 208,589 46799792
Mercury Finance Co. 12,500 207,813 58939510
North American Mortgage Co. 3,200 84,800 65703710
14,417,146
FEDERAL SPONSORED CREDIT - 1.2%
Federal Home Loan Mortgage Corporation 119,300 5,726,400 31340030
Federal National Mortgage Association 32,700 2,468,850 31358610
8,195,250
INSURANCE - 1.0%
Aetna Life & Casualty Co. 48,200 2,946,225 00814010
Allstate Corp. 21,200 625,400 02000210
American Bankers Insurance Group, Inc. 6,100 146,400 02445610
Capital Guaranty Corp. (a) 40,800 816,000 14018K10
Capital Holding Corp. 13,600 520,200 14018610
Citizens Corp. 900 18,113 17453310
Exel Ltd. 2,200 95,425 30161610
MGIC Investment Corp. 4,300 245,638 55284810
Mutual Risk Management Ltd. 300 8,850 62835110
Paul Revere Corp. (a) 9,200 213,900 70355910
TIG Holdings, Inc. 4,800 106,200 87246910
UNUM Corp. 23,000 1,132,750 90319210
6,875,101
SAVINGS & LOANS - 0.0%
Standard Federal Bank 400 11,500 85338910
SECURITIES INDUSTRY - 0.5%
Alex. Brown, Inc. 11,300 285,325 01390210
BHC Financial, Inc. (a) 5,625 154,688 05544W10
Colonial Group, Inc. Class A 10,000 300,000 19569910
Morgan Stanley Group, Inc. 17,000 1,219,750 61744610
Paine Webber Group, Inc. 56,500 $ 1,504,313 69562910
3,464,076
TOTAL FINANCE 69,675,028
HEALTH - 8.9%
DRUGS & PHARMACEUTICALS - 5.4%
Alpha 1 Biomedicals, Inc. (a) 100 1,813 02091010
Amgen, Inc. (a) 130,600 5,909,650 03116210
Applied Immune Sciences, Inc. (a) 11,200 133,000 03820F10
Biogen, Inc. (a) 38,800 1,474,400 09059710
Bristol-Myers Squibb Co. 26,400 1,580,700 11012210
COR Therapeutics, Inc. (a) 30,500 419,375 21775310
Cell Genesys, Inc. (a) 18,900 373,275 15092110
Cellcor, Inc. (a) 3,000 3,375 15115510
Cellpro, Inc. (a) 19,200 542,400 15115610
Cephalon, Inc. (a) 10,800 178,200 15670810
Chiron Corp. (a) 34,400 2,863,800 17004010
Cortech, Inc. (a) 1,500 19,875 22051J10
Creative Biomolecules, Inc. (a) 26,500 265,000 22527010
Cytotheraputics, Inc. (a) 17,800 218,050 23292310
Elan PLC ADR (a) 41,750 1,743,063 28413120
Elan PLC Therapeutic Systems unit
(1 common & 1 ADR warrant) (a) 7,093 212,790 28413140
Genetics Institute, Inc. depository share (a) 22,300 1,020,225 37185530
IMCERA Group, Inc. 55,900 1,928,550 45245410
Immulogic Pharmaceutical Corp. (a) 7,200 82,800 45252R10
Interferon Sciences, Inc. (a) 1,100 5,363 45890310
Liposome Co, Inc. (a) 29,000 355,250 53631110
Magainin Pharmaceuticals, Inc. (a) 12,300 162,975 55903610
Marsam Pharmaceuticals, Inc. (a) 28,800 568,800 57172810
Molecular Biosystems, Inc. (a) 6,000 141,000 60851310
Perspective Biosystems, Inc. (a) 4,000 106,000 71527110
Pfizer, Inc. 137,600 9,150,400 71708110
Protein Design Labs, Inc. (a) 1,800 42,975 74369L10
Schering-Plough Corp. 88,900 5,945,188 80660510
Sciclone Pharmaceuticals, Inc. (a) 11,800 292,050 80862K10
SciGenics, Inc. (Callable) (a) 2,900 21,750 80890410
Somatix Therapy Corp. (a) 10,800 74,250 83444710
Therapeutic Discovery Corp. unit 1
Class A + 1 Alza Corp. (warrant) (a) 3,280 18,040 88337620
US Bioscience, Inc. (a) 304 3,230 91164610
Univax Biologics, Inc. (a) 100 925 91335G10
Warner-Lambert Co. 29,900 1,984,613 93448810
37,843,150
MEDICAL EQUIPMENT & SUPPLIES - 2.1%
Boston Scientific Corp. (a) 80,400 994,950 10113710
Cardinal Distribution, Inc. 14,000 612,500 14148710
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES - CONTINUED
Dianon Systems, Inc. (a) 3,700 $ 22,200 25282610
Haemonetics Corp. (a) 29,500 700,625 40502410
Johnson & Johnson 147,800 6,447,775 47816010
McKesson Corp. 76 4,285 58155610
Medtronic, Inc. 62,800 4,851,300 58505510
PSICOR, Inc. (a) 300 3,488 74490110
Resound Corp. (a) 1,800 35,100 76119410
Sofamor/Danek Group, Inc. (a) 22,800 769,500 83400510
Zoll Medical Corp. (a) 4,600 144,900 98992210
14,586,623
MEDICAL FACILITIES MANAGEMENT - 1.4%
American Healthcorp, Inc. (a) 2,100 35,175 02649V10
Columbia Healthcare Corp. 45,600 1,322,400 19767910
GranCare, Inc. (a) 900 14,175 38518810
HCA Hospital Corporation of America
Class A (a) 19,400 572,300 40412010
HEALTHSOUTH Rehabilitation Corp. (a) 38,190 634,909 42192410
HealthTrust, Inc. - The Hospital Co. (a) 13,600 316,200 42221H10
Horizon Healthcare Corp. (a) 19,300 320,863 44042H10
Integrated Health Services, Inc. (a) 4,700 141,000 45812C10
Lincare Holdings, Inc. (a) 4,000 84,000 53279110
Manor Care, Inc. 13,150 277,794 56405410
PHP Healthcare Corp. (a) 24,700 157,463 69334410
Quantum Health Resources, Inc. (a) 10,100 303,000 74763L10
Summit Health Ltd. 32,900 250,863 86606410
U.S. Healthcare, Inc. 74,800 4,329,050 91191010
United HealthCare Corp. 20,000 1,445,500 91058110
10,204,692
TOTAL HEALTH 62,634,465
INDUSTRIAL MACHINERY & EQUIPMENT - 2.4%
ELECTRICAL EQUIPMENT - 1.9%
Antec Corp. (a) 19,600 539,000 03664P10
General Electric Co. 64,400 6,327,300 36960410
Gilat Satellite Networks (a) 800 12,000 40199892
Hutchison Whampoa Ltd. Ord. 855,000 3,431,158 44841510
Scientific-Atlanta, Inc. 60,000 1,882,500 80865510
Star Paging International Holdings Ltd. 2,240,000 978,666 85599692
Westinghouse Electric Corp. 10,000 140,000 96040210
13,310,624
INDUSTRIAL MACHINERY & EQUIPMENT - 0.5%
Caterpillar, Inc. 23,200 1,977,800 14912310
Flow International Corp. (a) 37,200 299,925 34346810
Granite Industries BHD 194,000 1,114,856 38799522
3,392,581
POLLUTION CONTROL - 0.0%
Weston (Roy F.), Inc. Class A (a) 700 $ 6,038 96113710
TOTAL INDUSTRIAL MACHINERY
& EQUIPMENT 16,709,243
MEDIA & LEISURE - 5.9%
BROADCASTING - 1.5%
BET Holdings, Inc. Class A (a) 2,400 44,400 08658510
Broadcasting Partners, Inc. Class A (a) 1,900 30,163 11131910
CBS, Inc. 5,200 1,602,900 12484510
Comcast Corp. Class A (special) 58,800 1,999,200 20030020
Evergreen Media Corp. Class A (a) 1,700 28,900 30024810
Gaylord Entertainment Co. Class A 4,400 105,600 36790110
Grupo Televisa SA De CV ADR (a) (b) 17,400 1,026,600 40049J10
Jacor Communications, Inc. Class A (a) 15,100 215,175 46985840
Peoples Choice TV Corp. (a) 1,500 39,000 71084710
Tele-Communications, Inc. Class A (a) 58,900 1,774,363 87924010
Time Warner, Inc. 44,627 1,969,166 88731510
Turner Broadcasting System, Inc. Class B 35,100 851,175 90026250
Viacom, Inc. (a) 17,700 865,088 92552410
10,551,730
ENTERTAINMENT - 0.6%
Carnival Cruise Lines, Inc. Class A 42,700 2,044,263 14365810
Casino America, Inc. (a) 27,800 625,500 14757510
Disney (Walt) Co. 31,600 1,256,100 25468710
New Line Cinema Corp. (a) 2,600 60,125 64646510
Players International, Inc. (a) 24,000 582,000 72790310
4,567,988
LEISURE DURABLES & TOYS - 0.3%
Callaway Golf Co. 21,000 1,094,625 13119310
Champion Enterprises, Inc. (a) 11,300 209,050 15849610
Coachmen Industries, Inc. 1,200 16,800 18987310
Fleetwood Enterprises, Inc. 19,000 458,375 33909910
Nu-Kote Holding, Inc. Class A (a) 10,400 218,400 66993510
1,997,250
LODGING & GAMING - 1.9%
Argosy Gaming Corp. (a) 13,600 316,200 04022810
Caesars World, Inc. (a) 12,400 606,050 12769510
Circus Circus Enterprises, Inc. (a) 16,200 560,925 17290910
Gtech Holdings Corp. (a) 22,000 640,750 40051810
Hospitality Franchise Systems, Inc (a) 29,900 1,278,225 44091210
International Game Technology 38,900 1,176,725 45990210
Mirage Resorts, Inc. (a) 125,000 2,750,000 60462E10
President Riverboat Casinos, Inc. (a) 67,050 1,609,200 74084810
Promus Companies, Inc. (a) 85,800 3,625,050 74342A10
WMS Industries, Inc. (a) 28,800 928,800 92929710
13,491,925
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
MEDIA & LEISURE - CONTINUED
PUBLISHING - 0.2%
Ming Pao Enterprise Corp. Ltd. (a) 367,000 $ 448,962 60399392
Tribune Co. 9,700 540,775 89604710
Washington Post Co. Class B 1,400 331,800 93964010
1,321,537
RESTAURANTS - 1.4%
Applebee's International, Inc. 5,200 133,900 03789910
Back Bay Restaurant Group, Inc. (a) 11,900 187,425 05635V10
Bertucci's, Inc. (a) 24,800 508,400 08606310
Brinker International, Inc. 15,300 634,950 10964110
Cracker Barrel Old Country Store, Inc. 9,700 274,025 22410010
Lone Star Steakhouse Saloon (a) 43,100 1,029,013 54230710
McDonald's Corp. 102,900 6,032,513 58013510
Outback Steakhouse, Inc. (a) 4,200 138,600 68989910
Quantum Restaurant Group, Inc. (a) 8,300 87,150 74763T10
Sbarro, Inc. 13,600 571,200 80584410
9,597,176
TOTAL MEDIA & LEISURE 41,527,606
NONDURABLES - 2.4%
BEVERAGES - 0.9%
Coca-Cola Company (The) 87,000 3,675,750 19121610
Coca-Cola Femsa SA de CV sponsored ADR (a) 3,900 111,150 19124110
Dr. Pepper/Seven-Up Companies, Inc. (a) 5,300 120,575 25613130
Emvasa Del Valle de Enah Ord. (a) 30,600 123,272 29299E22
PepsiCo, Inc. 58,500 2,354,625 71344810
6,385,372
FOODS - 0.0%
Herdez SA de CV Class B (a) 104,400 105,311 42799F23
International Multifoods Corp. 2,000 45,250 46004310
150,561
HOUSEHOLD PRODUCTS - 0.8%
BeautiControl Cosmetics, Inc. 10,000 117,500 07465510
First Brands Corp. 23,000 787,750 31935610
Gillette Company 61,300 3,831,250 37576610
Safeskin Corp. (a) 2,900 44,950 78645410
Safety First, Inc. (a) 20,000 545,000 78647510
Stanhome, Inc. 200 6,650 85442510
5,333,100
TOBACCO - 0.7%
Philip Morris Companies, Inc. 76,800 4,291,200 71815410
RJR Nabisco Holdings Corp. (a) 117,800 765,700 74960K10
5,056,900
TOTAL NONDURABLES 16,925,933
RETAIL & WHOLESALE - 9.1%
APPAREL STORES - 1.8%
AnnTaylor Stores Corp. (a) 7,200 $ 180,900 03611510
Catherines Stores Corp. (a) 7,200 138,600 14916F10
Cato Corp. Class A 82,750 1,717,063 14920510
Charming Shoppes, Inc. 196,800 2,656,800 16113310
Chicos Fashion, Inc. (a) 50,000 1,725,000 16861510
Designs, Inc. (a) 28,650 465,563 25057L10
Filene's Basement Corp. (a) 37,100 431,288 31686610
Gap, Inc. 81,200 3,248,000 36476010
Genesco, Inc. (a) 900 5,288 37153210
Giordano Holdings Ltd. Ord. 82,000 44,319 37599592
Limited, Inc. (The) 86,200 1,961,050 53271610
One Price Clothing Stores, Inc. (a) 2,700 51,975 68241110
Ross Stores, Inc. (a) 1,500 26,813 77829610
Talbots, Inc. (a) 7,500 200,625 87416110
Urban Outfitters, Inc. (a) 400 11,900 91704710
12,865,184
GENERAL MERCHANDISE STORES - 4.0%
Caldor Corp. (a) 10,500 324,188 12878710
Consolidated Stores Corp. (a) 59,600 1,259,050 21014910
Dayton Hudson Corp. 57,100 4,075,513 23975310
Dillard Department Stores, Inc. Class A 36,600 1,509,750 25406310
Federated Department Stores, Inc. (a) 56,100 1,227,188 31410J10
Lechters, Inc. (a) 3,200 36,800 52323810
May Department Stores Co. (The) 46,300 1,961,963 57777810
Penney (J.C.) Co., Inc. 129,600 6,917,400 70816010
Price/Costco, Inc. 59,100 1,130,288 74143W10
Proffitts, Inc. (a) 26,500 768,500 74292510
Sears, Roebuck & Co. 83,900 4,562,063 81238710
Wal-Mart Stores, Inc. 136,700 3,913,038 93114210
27,685,741
GROCERY STORES - 0.0%
Dairy Farm International Holdings Ltd. Ord. 135,000 228,938 23385910
RETAIL & WHOLESALE, MISC - 3.3%
Bed Bath & Beyond, Inc. (a) 28,500 926,250 07589610
Best Buy Co., Inc. (a) 6,450 320,888 08651610
Body Shop International PLC (a) 14,600 45,127 09679992
CML Group, Inc. 165,400 4,465,800 12582010
Eagle Hardware & Garden, Inc. (a) 55,300 1,562,225 26959B10
50-Off Stores, Inc. (a) 30,800 254,100 31681110
Futures Shops Ltd. 18,300 309,966 36091310
Good Guys, Inc. (a) 5,800 90,625 38209110
Home Depot, Inc. (The) 26,600 1,100,575 43707610
Little Switzerland, Inc. (a) 29,000 261,000 53752810
Lowe's Companies, Inc. 130,200 6,672,750 54866110
National Record Mart, Inc. (a) 13,000 92,625 63735510
Office Depot, Inc. (a) 156,200 4,978,875 67622010
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISC - CONTINUED
Sunglass Hut International, Inc. (a) 10,500 $ 315,000 86736F10
Toys "R" Us, Inc. (a) 41,000 1,670,750 89233510
23,066,556
TOTAL RETAIL & WHOLESALE 63,846,419
SERVICES - 0.9%
EDUCATIONAL SERVICES - 0.0%
Informatics Holdings Ltd. (a) 184,000 240,350 45699D22
LEASING & RENTAL - 0.7%
Blockbuster Entertainment Corp. (a) 111,100 3,707,963 09367610
Ryder Systems, Inc. 44,100 1,289,925 78354910
4,997,888
PRINTING - 0.1%
Reynolds & Reynolds Co. Class A 6,200 261,175 76169510
SERVICES - 0.1%
Health Care Services Group, Inc. (a) 12,600 127,575 42190610
Kelly Services, Inc. Class A 8,800 247,500 48815220
Oroamerica, Inc. (a) 9,800 137,200 68702710
TRO Learning, Inc. (a) 700 6,825 87263R10
519,100
TOTAL SERVICES 6,018,513
TECHNOLOGY - 23.8%
COMMUNICATIONS EQUIPMENT - 6.4%
ADC Telecommunications, Inc. (a) 25,800 890,100 00088610
Cabletron Systems, Inc. (a) 76,400 8,002,900 12692010
Centigram Communications Corp. (a) 49,500 1,485,000 15231710
Cisco Systems, Inc. (a) 185,400 10,428,750 17275R10
DSC Communications Corp. (a) 38,000 2,056,750 23331110
Data Race, Inc. (a) 400 4,200 23784210
Digital Systems International, Inc (a) 400 1,425 25391210
General Instrument Corp. (a) 40,000 2,135,000 37012110
Inter-Tel, Inc. (a) 5,500 51,563 45837210
Level One Communications, Inc. (a) 800 24,200 52729510
Newbridge Networks Corp. (a) 37,900 1,857,100 65090110
Octel Communications Corp. (a) 10,000 250,000 67572410
S Megga International 3,032,000 981,246 99999C92
Summa Four, Inc. (a) 3,900 125,775 86562810
3Com Corp. (a) 152,300 5,539,913 88553510
Teledata Communications Ltd. (a) 700 14,525 93799992
Tellabs, Inc. (a) 23,100 947,100 87966410
Union Switch and Signal, Inc. (a) 28,900 455,175 90857310
VMX, Inc. (a) 40,600 175,088 91827610
Wellfleet Communications, Inc. (a) 152,200 8,884,675 94949710
Xircom, Inc. (a) 20,000 300,000 98392210
44,610,485
COMPUTER SERVICES & SOFTWARE - 6.6%
Acclaim Entertainment, Inc. (a) 77,300 $ 1,893,850 00432520
Adobe Systems, Inc. 31,200 721,500 00724F10
Brock Control Systems, Inc. (a) 41,400 693,450 11162610
CUC International, Inc. (a) 184,700 6,164,363 12654510
Chipcom Corp. (a) 30,900 1,367,325 16961710
Compuware Corp. (a) 21,900 542,025 20563810
Davidson & Associates, Inc. (a) 300 6,600 23858810
ECI Telecom Ltd. 129,600 3,045,600 26825810
Electronic Arts (a) 81,900 2,856,263 28551210
Electronics For Imaging Incorporated (a) 8,100 147,825 28608210
Equifax, Inc. 2,300 55,488 29442910
FTP Software, Inc. (a) 1,000 24,250 30266010
IMRS, Inc. (a) 2,200 50,600 44969610
Intelligent Electronics, Inc. 89,800 2,402,150 45815710
Landmark Graphics Corp. (a) 3,600 71,100 51491310
Lotus Development Corp. (a) 88,400 4,066,400 54570010
MicroAge, Inc. (a) 3,700 134,125 59492810
Microsoft Corp. (a) 66,000 5,280,000 59491810
Netmanage, Inc. (a) 500 16,000 64114410
Novell, Inc. (a) 76,900 1,807,150 67000610
Oracle Systems Corp. (a) 223,800 7,077,675 68389X10
Parametric Technology Corp. (a) 105,700 4,043,025 69917310
Platinum Software Corp. (a) 300 6,900 72764R10
Recognition Equipment, Inc. (a) 26,900 437,125 75623110
Sterling Software, Inc. (a) 10,000 278,750 85954710
Stratacom, Inc. (a) 40,000 720,000 86268310
Structural Dynamics Research Corp. (a) 50,800 876,300 86355510
Sybase, Inc. (a) 25,400 939,800 87113010
Synopsys, Inc. (a) 11,500 520,375 87160710
Viewlogic Systems, Inc. (a) 4,400 101,200 92672110
46,347,214
COMPUTERS & OFFICE EQUIPMENT - 6.7%
ADAPTEC, Inc. (a) 5,300 175,563 00651F10
AST Research, Inc. (a) 104,300 2,555,350 00190710
Auspex Systems, Inc. (a) 800 7,200 05211610
Compaq Computer Corp. (a) 328,500 23,775,188 20449310
Creative Technologies Corp. (a) 42,400 1,123,600 22599992
Danka Business Systems PLC
sponsored ADR 8,000 271,000 23627710
Dell Computer Corporation (a) 115,600 3,135,650 24702510
Digital Biometrics, Inc. (a) 6,900 91,425 25383310
EMC Corp. (a) 112,900 3,584,575 26864810
International Business Machines Corp. 65,100 3,507,263 45920010
MICROS Systems, Inc. (a) 7,500 153,750 59490110
Media Vision Technology, Inc. (a) 84,300 3,287,700 58445H10
Netframe Systems, Inc. (a) 14,900 245,850 64110610
Quantum Corp. (a) 7,300 104,025 74790610
VALUE VALUE
SHARES (NOTE 1) SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Seagate Technology (a) 111,500 $ 2,703,875 81180410
Supermac Technology, Inc. (a) 4,700 62,276 86843310
SynOptics Communications, Inc. (a) 54,200 1,382,100 87160910
Tech Data Corp. (a) 37,700 1,131,000 87823710
47,297,390
ELECTRONIC INSTRUMENTS - 0.2%
Applied Materials, Inc. (a) 40,300 1,420,575 03822210
ELECTRONICS - 3.6%
Dovatron International, Inc. (a) 57,800 1,589,500 25985910
Intel Corp. 57,800 3,554,700 45814010
Micron Technology, Inc. 74,500 3,445,625 59511210
Motorola, Inc. 107,900 10,115,625 62007610
Sanmina Corp. (a) 40,500 1,042,875 80090710
Texas Instruments, Inc. 90,900 5,840,325 88250810
25,588,650
PHOTOGRAPHIC EQUIPMENT - 0.3%
Eastman Kodak Co. 35,500 2,161,063 27746110
TOTAL TECHNOLOGY 167,425,377
TRANSPORTATION - 3.0%
AIR TRANSPORTATION - 0.8%
AMR Corp. (a) 25,800 1,699,575 00176510
Comair Holdings, Inc. 25,300 777,975 19978910
East Asiatic Co. Hong Kong Ltd. 227,000 88,158 27099892
Mesa Airlines, Inc. (a) 27,500 460,625 59048110
Technology Resources (MLAY) (a) 519,000 2,130,376 93699692
UAL Corp. (a) 1,200 178,200 90254910
5,334,909
RAILROADS - 1.4%
CSX Corp. 48,700 4,042,100 12640810
Chicago & North Western Holdings Corp. (a) 41,100 976,125 16715510
Conrail, Inc. 81,000 5,052,375 20836810
10,070,600
SHIPPING - 0.0%
Overseas Shipholding Group, Inc. 200 4,300 69036810
Shun Tak Holdings Ltd. 166,000 191,254 82799192
Transportacion Maritima Mexicana SA
de CV sponsored ADR Class A 14,000 136,500 89386830
332,054
TRUCKING & FREIGHT - 0.8%
Arkansas Best Corp. 5,000 $ 66,875 04079010
Federal Express Corp. (a) 75,700 5,412,550 31330910
Landstar System, Inc. (a) 8,800 159,500 51509810
5,638,925
TOTAL TRANSPORTATION 21,376,488
UTILITIES - 4.9%
CELLULAR - 1.2%
A Plus Communications, Inc. (a) 1,000 14,750 00193410
Arch Communications Group, Inc. (a) 63,600 874,500 03938110
Century Telephone Enterprises, Inc. 3,000 73,125 15668610
Dial Page, Inc. (a) 3,100 125,550 25247P10
IDB Communications Group, Inc. (a) 30,900 1,382,775 44935510
McCaw Cellular Communications, Inc.
Class A (a) 16,300 835,375 57946810
Metrocall, Inc. (a) 4,900 88,200 59164710
Mobile Telecommunications
Technologies, Inc. (a) 52,800 1,339,800 60740610
Nationwide Cellular Service, Inc. (a) 2,300 32,775 63859510
Nextel Communications, Inc. Class A 8,200 309,550 65332V10
Paging Network, Inc. (a) 79,350 2,281,313 69554210
Rogers Cantel Mobile Communications, Inc.
Class B (non-vtg.) (a) 31,700 795,021 77510210
United States Cellular Corp. (a) 7,800 242,775 91168410
8,395,509
ELECTRIC UTILITY - 0.2%
Consolidated Electric Power Asia Ltd.
sponsored ADR 16,000 259,252 20855210
Hong Kong Electric Holdings Ord. 314,000 1,060,921 43858010
Korea Electric Power Corp. 6,000 144,784 50099B92
1,464,957
TELEPHONE SERVICES - 3.5%
ALC Communications Corp. (a) 123,100 3,292,925 00157530
ALLTEL Corp. 6,700 172,525 02003910
American Telephone & Telegraph Co. 25,100 1,371,088 03017710
Ameritech Corp. 45,100 3,450,150 03095410
Bell Atlantic Corp. 7,800 468,000 07785310
BellSouth Corp. 11,100 634,088 07986010
Davel Communications Group, Inc. (a) 1,000 15,250 23833810
LCI International, Inc. (a) 36,100 1,191,300 50181310
MCI Communications Corp. 47,400 1,155,375 55267310
NYNEX Corp. 30,200 1,287,275 67076810
Pacific Telesis Group 15,100 856,925 69489010
Southwestern Bell Corp. 76,500 3,251,250 84533310
Sprint Corporation 133,400 4,368,850 85206110
VALUE
SHARES (NOTE 1)
COMMON STOCKS - CONTINUED
UTILITIES - CONTINUED
TELEPHONE SERVICES - CONTINUED
Telebras "PN" (Pfd. Reg.) 44,000,000 $ 1,545,720 95499792
Telecom Argentina Stet France (a) 39,500 186,031 90899992
Telefonica Argentina Class B (a) 48,600 264,927 87999D92
Telefonos de Mexico SA sponsored ADR
representing share Ord. Class L 8,200 457,150 87940378
US Long Distance Corp. (a) 22,500 376,875 91191220
24,345,704
TOTAL UTILITIES 34,206,170
TOTAL COMMON STOCKS
(Cost $554,638,708) 584,625,895
MATURITY
AMOUNT
REPURCHASE AGREEMENTS - 17.0%
Investments in repurchase agreements,
(U.S. Treasury obligations), in a joint
trading account at 3.24% dated
11/30/93 due 12/01/93 $ 119,682,770 119,672,000
TOTAL INVESTMENT in securities - 100%
(Cost $674,310,708) $ 704,297,895
LEGEND:
(c) Non-income producing
(d) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At the period
end, the value of these securities amounted to $1,970,663 or 0.3% of net
assets.
INCOME TAX INFORMATION:
At November 30, 1993, the aggregate cost of investment securities for
income tax purposes was $676,650,525. Net unrealized appreciation
aggregated $27,647,370, of which $46,892,646 related to appreciated
investment securities and $19,245,276 related to depreciated investment
securities.
The fund hereby designates $6,269,000 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, 1993
ASSETS
Investment in securities, at value (including repurchase agreements of $119,672,000)
(cost $674,310,708) (Notes 1 $ 704,297,895
and 2) - See accompanying schedule
Cash 929
Receivable for investments sold 13,433,399
Receivable for fund shares sold 6,136,999
Dividends receivable 852,175
Other receivables 38,909
Total assets 724,760,306
LIABILITIES
Payable for investments purchased $ 47,700,055
Payable for fund shares redeemed 1,708,556
Accrued management fee 359,173
Distribution fees payable (Note 4) 197,290
Other payables and accrued expenses 345,361
Total liabilities 50,310,435
NET ASSETS $ 674,449,871
Net Assets consist of:
Paid in capital $ 592,017,190
Undistributed net investment income 1,328,949
Accumulated undistributed net realized gain (loss) on investments 51,116,545
Net unrealized appreciation (depreciation) on investment securities 29,987,187
NET ASSETS $ 674,449,871
CALCULATION OF MAXIMUM OFFERING PRICE $29.74
INSTITUTIONAL CLASS
NET ASSET VALUE, offering price and
redemption price per share
($296,465,564 (divided by) 9,968,673 shares)
RETAIL CLASS $29.50
NET ASSET VALUE, and redemption price
per share ($377,984,307 (divided by)
12,811,811 shares)
Maximum offering price per share (100/95.25 of $29.50) $30.97
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
<S> <C> <C>
Year Ended November 30, 1993
INVESTMENT INCOME $ 3,957,841
Dividends
Interest 2,477,445
Total income 6,435,286
EXPENSES
Management fee (Note 4) $ 2,646,631
Transfer agent fees (Note 4) 324,822
Institutional Class
Retail Class 647,152
Distribution fees - Retail Class (Note 4) 1,141,854
Accounting fees and expenses (Note 4) 234,813
Non-interested trustees' compensation 2,385
Custodian fees and expenses 102,433
Registration fees 108,605
Institutional Class
Retail Class 137,722
Audit 40,609
Legal 19,336
Miscellaneous 8,481
Total expenses before reductions 5,414,843
Expense reductions (Note 5) (39,081) 5,375,762
Net investment income 1,059,524
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 3) 37,971,228
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on investment securities 9,616,597
Net gain (loss) 47,587,825
Net increase (decrease) in net assets resulting from operations $ 48,647,349
</TABLE>
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
<S> <C> <C>
YEARS ENDED NOVEMBER 30,
INCREASE (DECREASE) IN NET ASSETS 1993 1992
Operations $ 1,059,524 $ 944,099
Net investment income
Net realized gain (loss) on investments 37,971,228 4,806,695
Change in net unrealized appreciation (depreciation) on investments 9,616,597 17,029,147
Net increase (decrease) in net assets resulting from operations 48,647,349 22,779,941
Distributions to shareholders from:
Net investment income
Institutional Class (658,156) (91,191)
Retail Class (91,782) -
Net realized gain
Institutional Class (3,309,453) (8,130,245)
Retail Class (624,995) -
Share transactions - net increase (decrease) (Note 6) 428,507,160 118,655,000
Total increase (decrease) in net assets 472,470,123 133,213,505
NET ASSETS
Beginning of period 201,979,748 68,766,243
End of period (including undistributed net investment income of $1,328,949 and
$1,019,363, respectively) $ 674,449,871 $ 201,979,748
</TABLE>
Financial Highlights - Retail Class
<TABLE>
<CAPTION>
<S> <C> <C>
YEAR ENDED PERIOD
NOVEMBER 30, ENDED**
NOVEMBER
30,
1993 1992
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 26.33 $ 23.78
Income from Investment Operations
Net investment income (loss) (.07)(double dagger) .01(double dagger)
Net realized and unrealized gain (loss) on investments 3.82 2.54
Total from investment operations 3.75 2.55
Less Distributions
From net investment income (.08) -
From net realized gain (.50) -
Total distributions (.58) -
Net asset value, end of period $ 29.50 $ 26.33
TOTAL RETURN (dagger) (dagger)(dagger) 14.52% 10.72%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 377,984 $ 22,655
Ratio of expenses to average net assets *** 1.84% 1.47%*
Ratio of expenses to average net assets before expense reductions *** 1.85% 1.47%*
Ratio of net investment income to average net assets (.24)% .25%*
Portfolio turnover rate 160% 240%*
</TABLE>
* ANNUALIZED
** FOR THE PERIOD SEPTEMBER 10, 1992 (COMMENCEMENT OF SALES OF RETAIL CLASS
SHARES) TO NOVEMBER 30, 1992.
*** SEE NOTE 5 OF NOTES TO FINANCIAL STATEMENTS.
(dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
(dagger)(dagger) TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND
FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
(double dagger) NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED
ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
FOR THE PERIOD ENDED NOVEMBER 30, 1993
7. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Equity Portfolio Growth (the fund) is a fund of Fidelity
Advisor Series I (the trust) (formerly Fidelity Broad Street 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 fund offers both Institutional Class and Retail Class shares which have
equal rights as to earnings, assets and voting privileges except that each
class bears different distribution and transfer agent expenses and certain
registration fees. Each class has exclusive voting rights with respect to
its distribution plans.
The following summarizes the significant accounting policies of the fund:
ALLOCATED EARNINGS AND EXPENSES. Investment income, expenses (other than
expenses incurred under each class's Distribution and Service Plans,
Transfer Agent Agreements and certain registration fees) and realized and
unrealized gains or losses on investments are allocated to each class of
shares based upon their relative net assets.
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 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.
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.
8. 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.
2. OPERATING POLICIES - CONTINUED
FORWARD FOREIGN CURRENCY CONTRACTS - CONTINUED
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 (the 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.
9. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $917,420,702 and $544,666,908, respectively.
10. 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 .33%.
For the period, the management fee was equivalent to an annual rate of
.66% of average net assets.
The Board of Trustees approved a new group fee rate schedule with rates
ranging from .2850% to .5200%. Effective November 1, 1993, 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, the
Retail Class pays Fidelity Distributors Corporation (FDC), an affiliate of
FMR, a distribution and service fee that is based on an annual rate of .65%
of its average net assets. For the period, the Retail Class paid FDC
$1,141,854 of which $883,141 was paid to securities dealers, banks and
other financial institutions for selling shares of the Retail Class and
providing shareholder support services.
In addition, FMR or FDC may use its 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 $11,557 for the
period.
SALES LOAD. FDC received sales charges for selling shares of the Retail
Class. The sales charge rates ranged from 2.00% to 4.75% based on purchase
amounts of less than $1,000,000. Purchase amounts of $1,000,000 or more are
not charged a sales load. For the period, FDC received $10,102,208 of which
$8,579,172 was paid to securities dealers, banks and other financial
institutions.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEE. Fidelity Investments Institutional Operations Company
(FIIOC), an affiliate of FMR, and State Street Bank and Trust Company
(State Street) are the transfer, dividend disbursing and shareholder
servicing agents for the Institutional Class and Retail Class,
respectively. Under revised fee schedules which became effective January 1,
1993, FIIOC and State Street receive fees based on the type, size, number
of accounts and the number of transactions made by shareholders. FIIOC, on
behalf of State Street, also collects fees from the fund and pays State
Street for its services. FIIOC pays for typesetting, printing and mailing
of all shareholder reports, except proxy statements.
ACCOUNTING FEE. Fidelity Service Co. (FSC), 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.
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 $362,158 for the period.
11. 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
$39,081 under this arrangement.
12. SHARE TRANSACTIONS.
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.
Share transactions for both classes were as follows:
SHARES DOLLARS
YEARS ENDED NOVEMBER 30, YEARS ENDED NOVEMBER 30,
1993 1992 (A) 1993 1992 (A)
INSTITUTIONAL CLASS
Shares sold 7,349,367 7,045,209 $ 209,624,041 $ 171,212,032
Reinvestment of distributions from net investment income 10,955 2,043
288,338 46,447
Reinvestment of distributions from capital gains 66,700 207,570
1,755,818 4,797,374
Shares redeemed (4,257,621) (3,288,083) (120,643,846) (78,651,077)
Net increase (decrease) 3,169,401 3,966,739 $ 91,024,351 $ 97,404,776
RETAIL CLASS
Shares sold 14,584,330 903,737 $ 412,419,636 $ 22,359,351
Reinvestment of distributions from net investment income 2,639 - 69,378
- -
Reinvestment of distributions from capital gains 18,819 - 494,812 -
Shares redeemed (2,654,268) (43,446) (75,501,017) (1,109,127)
Net increase (decrease) 11,951,520 860,291 $ 337,482,809 $ 21,250,224
(a) Share transactions for the Retail Class are for the period September
10, 1992 (commencement of sale of shares) to November 30, 1992.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Advisor Series I (formerly Fidelity Broad
Street Trust) and the Shareholders of Fidelity Advisor Equity Portfolio
Growth:
We have audited the accompanying statement of assets and liabilities of
Fidelity Advisor Series I: Fidelity Advisor Equity Portfolio Growth,
including the schedule of portfolio investments, as of November 30, 1993,
and the related statement of operations for the year then ended, the
statement of changes in net assets for each of the two years in the period
then ended and the financial highlights for each of the five years in the
period then ended (Institutional Class) and for the year ended November 30,
1993 and for the period September 10, 1992 (commencement of sale of Retail
Class shares) to November 30, 1992 (Retail Class). These financial
statements and financial highlights are the responsibility of the fund's
management. Our responsibility is to express an opinion on these financial
statements and financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of November 30, 1993, by correspondence with the
custodian and brokers. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that
our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred
to above present fairly, in all material respects, the financial position
of Fidelity Advisor Series I: Fidelity Advisor Equity Portfolio Growth as
of November 30, 1993, the results of its operations for the year then
ended, the changes in its net assets for each of the two years in the
period then ended, and the financial highlights for each of the five years
in the period then ended (Institutional Class) and for the year ended
November 30, 1993 and for the period September 10, 1992 (commencement of
sale of Retail Class shares) to November 30, 1992 (Retail Class), in
conformity with generally accepted accounting principles.
COOPERS & LYBRAND
Boston, Massachusetts
January 7, 1994
DISTRIBUTIONS
The Board of Trustees of Fidelity Advisor Equity Portfolio Growth 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, and dividends derived from net investment income:
Institutional Class:
Pay Date Record Date Dividends Capital Gains
12/20/93 12/17/93 $0.11 $1.34
1/10/94 1/7/94 - .11
Retail Class:
Pay Date Record Date Dividends Capital Gains
12/20/93 12/17/93 - $1.34
1/10/94 1/7/94 - .11
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, PRESIDENT
J. Gary Burkhead, SENIOR VICE PRESIDENT
Robert E. Stansky, 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
State Street Bank and Trust Company
Boston, MA
CUSTODIAN
The Chase Manhattan Bank, N.A.
New York, NY
THE FIDELITY ADVISOR FUND FAMILY
ASK YOUR INVESTMENT PROFESSIONAL ABOUT THE ADVISOR FUND OR FUNDS THAT BEST
SUIT YOUR INVESTMENT NEEDS.
INCOME
GROWTH
EQUITY FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Growth Opportunities Fund
Fidelity Advisor Strategic Opportunities Fund(dagger)
Fidelity Advisor Global Resources Fund(dagger)(dagger)
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Portfolio Income
Fidelity Advisor Income & Growth Fund
FIXED-INCOME FUNDS
Fidelity Advisor High Yield Fund
Fidelity Advisor Government Investment Fund
Fidelity Advisor Limited Term Bond Fund
Fidelity Advisor Short Fixed-Income Fund
TAX-EXEMPT FUNDS
Fidelity Advisor High Income Municipal Fund
Fidelity Advisor Limited Term Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
ABOUT THESE CHARTS. The bar graphs shown above are intended as a relative
comparison of current income and growth potential among the various fund
types. The graphs are based solely on the general investment objective of
each fund category and do not represent actual or implied fund performance
or
portfolio composition.
(dagger) Formerly the Fidelity Special Situations Fund: Advisor Class.
(dagger)(dagger) Formerly the Fidelity Advisor Global Natural Resources
Portfolio.
