(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)
EQUITY PORTFOLIO GROWTH - CLASS A
SEMIANNUAL REPORT
MAY 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 30 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 35 Notes to the financial statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS
OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE
FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY,AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY
DISTRIBUTORS
CORPORATION IS A BANK.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first few months of 1994 were an unsettling time for many investors.
After three years of a nearly perfect environment for stock market
investing, stock prices fell in March and April. Investors disagree about
whether this decline represents only a short-term correction or signals the
beginning of a longer bear market. One can collect statistics to support
either opinion, but of course, nobody knows for sure what will happen to
stock prices in the months ahead.
We do know, however, that market declines are a normal part of stock market
investing. We have historically seen corrections of 10% or more every two
years. That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful stock market
investors in every market cycle.
First, take a long-term approach when investing in stocks and stock funds.
If you can afford to leave your money invested through the market's
inevitable ups and downs, you will greatly reduce your vulnerability to any
single decline. Over time, stock prices have gone up - and have
significantly outperformed other types of investments and stayed ahead of
inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value). On September
10, 1992 the fund began offering Class A shares. All performance
information for Class A prior to September 10, 1992 does not reflect Class
A's 12b-1 fee and revised transfer agent fee arrangements, which if
included, would lower Class A's performance.
CUMULATIVE TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
PERIODS ENDED MAY 31, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Advisor Equity Portfolio Growth - Class 1.80% 5.74% 146.43% 577.86%
A
Advisor Equity Portfolio Growth -
Class A (incl. 4.75% sales charge) -3.04% 0.72% 134.72% 545.66%
S&P 500(Registered trademark) 0.24% 4.26% 66.69% 328.17%
Average Growth Fund -0.01% 4.62% 64.33% 275.71%
</TABLE>
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or ten years. You
can compare the fund's returns to the performance of the Standard &
Poor's 500 Composite Stock Price Index - a common proxy for the U.S. stock
market. You can also compare them to the average growth fund, which
reflects the performance of over 487 growth funds tracked by Lipper
Analytical Services. Both benchmarks include reinvested dividends and
capital gains, if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Advisor Equity Portfolio Growth - Class A 5.74% 19.77% 21.09%
Advisor Equity Portfolio Growth - Class A
(incl. 4.75% sales charge) 0.72% 18.61% 20.50%
S&P 500(Registered trademark) 4.26% 10.76% 15.65%
Average Growth Fund 4.62% 10.16% 13.66%
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER 10 YEARS
05/31/84 9525.00 10000.00
06/30/84 9896.45 10217.00
07/31/84 9458.67 10090.31
08/31/84 11090.39 11205.29
09/30/84 10838.34 11207.53
10/31/84 10971.00 11251.24
11/30/84 10652.61 11125.22
12/31/84 10891.40 11418.93
01/31/85 12549.65 12308.47
02/28/85 12987.43 12459.86
03/31/85 12615.99 12468.58
04/30/85 12496.59 12457.36
05/31/85 13199.69 13177.40
06/30/85 13358.88 13384.28
07/31/85 13849.72 13364.20
08/31/85 13955.85 13250.61
09/30/85 13146.63 12835.86
10/31/85 13664.00 13428.88
11/30/85 14712.02 14350.10
12/31/85 15415.12 15044.65
01/31/86 15936.16 15128.90
02/28/86 17276.72 16260.54
03/31/86 18220.57 17167.88
04/30/86 18795.10 16973.88
05/31/86 19602.16 17876.89
06/30/86 19752.63 18179.01
07/31/86 18097.46 17162.80
08/31/86 18713.02 18436.28
09/30/86 17003.13 16911.60
10/31/86 18247.93 17887.40
11/30/86 18029.07 18322.07
12/31/86 17651.95 17854.85
01/31/87 19769.59 20259.90
02/28/87 21555.77 21060.17
03/31/87 21359.94 21668.81
04/30/87 20576.65 21475.95
05/31/87 20441.07 21662.80
06/30/87 20832.72 22756.77
07/31/87 21781.72 23910.53
08/31/87 23092.24 24802.40
09/30/87 22700.59 24259.22
10/31/87 16720.41 19033.79
11/30/87 14942.92 17465.40
12/31/87 17552.11 18794.52
01/31/88 17503.71 19585.77
02/29/88 18552.32 20498.47
03/31/88 18826.57 19865.06
04/30/88 18616.85 20085.57
05/31/88 18487.79 20260.31
06/30/88 20133.30 21190.26
07/31/88 19729.99 21109.74
08/31/88 18858.83 20392.01
09/30/88 19907.44 21260.70
10/31/88 19697.72 21851.75
11/30/88 19391.20 21539.27
12/31/88 20285.07 21916.21
01/31/89 21883.49 23520.48
02/28/89 21899.97 22934.82
03/31/89 22625.02 23469.20
04/30/89 24124.57 24687.25
05/31/89 26200.86 25687.08
06/30/89 25228.63 25540.67
07/31/89 26958.88 27846.99
08/31/89 28013.50 28392.79
09/30/89 28787.99 28276.38
10/31/89 28425.46 27620.37
11/30/89 28540.81 28183.82
12/31/89 29381.17 28860.23
01/31/90 26684.44 26923.71
02/28/90 27759.36 27271.03
03/31/90 29381.17 27993.71
04/30/90 28796.56 27293.87
05/31/90 32888.81 29955.02
06/30/90 33171.68 29751.33
07/31/90 32228.77 29656.12
08/31/90 28117.67 26975.21
09/30/90 25798.10 25661.52
10/31/90 26118.69 25551.17
11/30/90 29324.59 27201.78
12/31/90 31417.86 27960.71
01/31/91 35981.56 29179.79
02/28/91 39225.18 31266.15
03/31/91 43072.27 32022.79
04/30/91 42921.40 32099.64
05/31/91 45165.53 33486.35
06/30/91 41412.74 31952.67
07/31/91 44769.51 33441.67
08/31/91 47183.37 34234.24
09/30/91 47296.52 33662.52
10/31/91 47428.52 34113.60
11/30/91 45787.86 32738.82
12/31/91 51747.63 36484.15
01/31/92 53196.63 35805.54
02/29/92 53470.08 36271.01
03/31/92 50945.92 35563.73
04/30/92 49894.19 36609.30
05/31/92 49662.81 36788.69
06/30/92 48022.11 36240.53
07/31/92 49704.88 37722.77
08/31/92 48505.90 36949.46
09/30/92 49410.39 37385.46
10/31/92 51997.65 37516.31
11/30/92 55384.23 38795.61
12/31/92 56866.65 39272.80
01/31/93 58458.88 39602.69
02/28/93 56932.37 40141.29
03/31/93 58716.88 40988.27
04/30/93 57727.88 39996.35
05/31/93 61060.40 41068.26
06/30/93 61296.90 41187.35
07/31/93 60243.39 41022.60
08/31/93 62436.41 42577.36
09/30/93 64263.92 42249.52
10/31/93 65037.92 43124.08
11/30/93 63425.41 42714.40
12/31/93 65313.66 43231.25
01/31/94 67592.99 44701.11
02/28/94 67028.21 43489.71
03/31/94 64294.67 41593.56
04/30/94 64972.41 42125.95
05/31/94 64565.76 42816.82
$10,000 OVER 10 YEARS: Let's say you invested $10,000 in Advisor Equity
Portfolio Growth - Class A on May 31, 1984, and paid the maximum 4.75%
sales charge. As the chart shows, by May 31, 1994, the value of your
investment would have grown to $64,566 - a 545.66% increase on your initial
investment. For comparison, look at how the S&P 500 did over the same
period. With dividends reinvested, the same $10,000 investment would have
grown to $42,817 - a 328.17% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
For the period ended May 31, 1994, Fidelity Advisor Equity Portfolio Growth
- - Institutional Class shares' cumulative total returns were 2.24%, 6.62%,
149.70%, and 586.85% for six months, one year, five years, and ten years,
respectively. For the period ended May 31, 1994, Institutional Class
shares' average annual returns were 6.62%, 20.08%, and 21.25% for one year,
five years, and ten years, respectively.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Robert Stansky, Portfolio Manager of Fidelity Advisor
Equity Portfolio Growth
Q. BOB, HOW DID THE FUND PERFORM?
A. Fidelity Advisor Equity Portfolio Growth - Class A had a total return of
1.80% for the six months ended May 31, 1994. That compares to a -0.01%
total return for the average growth fund tracked by Lipper Analytical
Services during the same period. For the 12 months ended May 31, the fund
was up 5.74%, while the average fund rose 4.62%.
Q. OBVIOUSLY, THE PERFORMANCE OF BOTH THE MARKET AND THE FUND HAS SLOWED
LATELY. WHAT'S YOUR TAKE ON THE RECENT CORRECTION?
A. In the last report, I talked about how high stock valuations - prices
compared to other measures such as earnings - had risen. The fund had
averaged more than a 27% total return during each of the three calendar
years prior to December 31, 1993, and the Standard & Poor's 500 had an
average annual return of 15% during the same period; keep in mind the
market's historic average annual return is roughly 10%. Anytime valuations
get that high, investors are just waiting for a reason to sell. That reason
arrived in early February when the Federal Reserve Board raised short-term
interest rates for the first time in five years. The Fed's move was
designed to curb future inflation that might result from the strengthening
economy. But rising interest rates often result in falling stock prices,
which was the general trend from February through May. First, investors
became concerned that higher rates might slow the economic growth that had
begun to boost corporate profits. Second, when rates go up, returns on
safer investments such as CDs and savings accounts begin to look more
attractive relative to stocks.
Q. DID ANY OF THE FUND'S STOCKS MAKE IT THROUGH UNSCATHED?
A. Very few. But thankfully, the fund's largest investment over the past
six months - Compaq Computer - was one of them. Compaq's stock price rose
more than 60% over the past six months. Despite that gain, the stock's
valuation remained very attractive because company earnings were rising
quickly too. Compaq has done a fantastic job of controlling costs, and at
the same time has been right on target providing the products that
consumers want. The growth in Compaq's product sales- or its unit growth -
is very strong, yet I see even more growth potential. That's one reason
I've increased the fund's stake in Compaq from 3.4% six months ago to 4.9%
on May 31. In fact, many of the fund's best performing stocks were in some
way tied to the boom in personal computers.
Q. WHAT ARE SOME OTHER EXAMPLES?
A. IBM is another PC producer that has helped the fund recently. Everyone
knows about the company's long fall from its Wall Street glory days. But
new management has effectively cut costs, and I'm expecting success for
some of IBM's newest products. In addition, Sybase and Oracle are up at
least 19% since the beginning of 1994. These are relational database
management software companies. As more and more PCs are tied together
through local area networks (or LANs), these companies benefit by providing
the database software to support those networks. Also, I've positioned the
fund to take advantage of what I think will be continued growth in the
demand for semiconductors. Texas Instruments boosted the fund's performance
over the past few months, and Intel and Applied Materials also were among
its top 10 investments at the end of the period.
Q. YOU INCREASED THE FUND'S STAKE IN ALL TECHNOLOGY STOCKS FROM 23.8% SIX
MONTHS AGO TO 26.5% ON MAY 31...
A. And the explanation is simple. No other sector comes close to technology
in the strength of its worldwide unit growth. But bear in mind this sector
also has a history of volatility. A good example is Cisco Systems, a
computer network products supplier whose stock recently suffered a sizable
correction. Cisco's earnings grew at an incredibly strong pace over the
past couple of years. But in early 1994, the company announced earnings
figures that were below what analysts had projected. Although Cisco's
earnings were still among the fastest-growing in the market, they appeared
to be slowing. Investors quickly turned negative on both the stock and the
technology sector as a whole, which I didn't anticipate.
Q. ANY OTHER DISAPPOINTMENTS?
A. Sure. The big three auto stocks - Chrysler, Ford and General Motors -
did very well through the winter as the economy heated sales. However, the
rise in interest rates this spring caused investors to worry whether the
auto companies could sustain that strong performance. I reduced the fund's
stake, but in hindsight, not quickly enough.
Q. RETAIL AND WHOLESALE STOCKS - 10.6% OF THE FUND ON MAY 31 - ARE NOW ITS
SECOND LARGEST SECTOR INVESTMENT. WHERE HAVE YOU FOUND OPPORTUNITIES?
A. As always, I use a bottom up approach to building the fund; I look for
attractive stocks rather than attractive sectors. That said, the recent
market correction resulted in lower valuations for some specialty retailers
that I had been watching closely, and I made my move. I bought the stocks
of retailers who operate in market niches where there appears to be room
for growth. Segments that do not have a dominant nationwide player usually
offer specialty retailers the best opportunity to increase business and
gain market share. For example, I've invested in retailers such as Home
Depot and Lowe's, which are fast growers in home improvement, and Office
Depot and Staples, which are gaining market share in office supplies.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DO YOU USE THEM?
A. The fund has the authority to use derivatives, but I haven't made much
use of them. The fund's investments usually remain limited to common
stocks, a few bonds, and some short-term securities.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. Over the long run, stock prices tend to follow earnings, so I'm trying
to pinpoint the companies that will grow earnings the fastest over the next
few years. There are reasons for optimism about earnings: many companies
have benefited from a stronger economy, many have effectively cut costs,
and many have corporate balance sheets that appear to be in good shape.
However, the spoiler could be higher interest rates. We'll have to wait and
see what effect higher rates will have on corporate earnings. If companies
begin to lower earnings estimates, we may be in for a bumpy ride over the
next six months.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing in
stocks that have
above-average growth
potential
START DATE: November 22,
1983
SIZE: As of May 31, 1994,
more than $1 billion
MANAGER: Robert Stansky,
since 1992; joined Fidelity in
1983
(checkmark)
ROBERT STANSKY ON THE EFFECT
OF RISING INTEREST RATES ON
STOCKS:
"Historically, rising rates have
been bad news for stocks. I
believe that stock prices
follow earnings, and higher
rates normally have a
negative impact on earnings.
It's a delicate balance within
the economy. The Federal
Reserve has raised rates to
control inflation that might
result from an overheated
economy. But economic
growth and increased
consumer spending are the
catalysts that allow
companies to raise the prices
of their products, which - if
they can control costs - can
result in higher earnings.
We're still not sure whether
the higher rates will dampen
corporate profits. And that will
be the key factor determining
how stocks behave through
the end of 1994."
(bullet) General Electric was the
fund's second largest
investment on May 31. The
stock suffered through the
first quarter of 1994 for
several reasons. However,
the improving economy has
boosted profits in several of
G.E.'s businesses, and
effective management helps
give the company strong
earnings potential over the
next couple of years.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF MAY 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Compaq Computer Corp. 4.9 3.4
General Electric Co. 2.4 0.9
Texas Instruments, Inc. 2.1 0.8
Microsoft Corp. 1.4 0.7
International Business Machines 1.4 0.5
Corp.
Applied Materials, Inc. 1.4 0.2
Intel Corp. 1.4 0.5
Home Depot, Inc. (The) 1.3 0.2
Lowe's Companies, Inc. 1.1 0.9
Warner-Lambert Co. 1.1 0.3
TOP FIVE INDUSTRIES AS OF MAY 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Technology 26.5 23.8
Retail & Wholesale 10.6 9.1
Finance 8.2 9.9
Health 7.1 8.9
Durables 5.5 4.5
ASSET ALLOCATION
AS OF MAY 31, 1994 AS OF NOVEMBER 30, 1993
Row: 1, Col: 1, Value: 18.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 82.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 20.0
Row: 1, Col: 6, Value: 20.0
Stocks 83.0%
Bonds -
Short-term
Investments 17.0%
Stocks 82.0%
Bonds -
Short-term
Investments 18.0%
Row: 1, Col: 1, Value: 17.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 83.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 20.0
Row: 1, Col: 6, Value: 20.0
INVESTMENTS MAY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
COMMON STOCKS - 81.7%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 0.0%
AEROSPACE & DEFENSE - 0.0%
Aviall, Inc. (a) 11,025 $ 165
Orbital Sciences Corporation 7,400 163
328
DEFENSE ELECTRONICS - 0.0%
Nichols Research Corp. 5,000 55
TOTAL AEROSPACE & DEFENSE 383
BASIC INDUSTRIES - 2.3%
CHEMICALS & PLASTICS - 0.2%
Airgas, Inc. (a) 43,700 1,054
GEON 7,900 235
Lubrizol Corp. 17,700 606
Raychem Corp. 1,800 67
1,962
IRON & STEEL - 0.9%
Armco, Inc. (a) 17,900 105
Birmingham Steel Corp. 67,400 2,106
Compania Siderurgica Nacional (a) 29,733,100 801
Nucor Corp. 108,500 7,283
USX-U.S. Steel Group 300 10
10,305
METALS & MINING - 0.2%
Aluminum Co. of America 22,800 1,610
Olympic Steel, Inc. (a) 66,700 834
2,444
PAPER & FOREST PRODUCTS - 1.0%
Caraustar Industries, Inc. 4,300 70
Champion International Corp. 54,000 1,762
Drypers Corp. (a) 10,900 140
Georgia-Pacific Corp. 52,700 3,399
International Paper Co. 25,400 1,759
Jefferson Smurfit Corp. 10,000 140
Pope & Talbot, Inc. 3,500 83
Smurfit (Jeff) Group PLC (UK) 74,100 357
Stone Container Corp. (a) 7,800 114
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS - CONTINUED
Temple-Inland, Inc. 8,500 $ 424
Weyerhaeuser Co. 58,600 2,439
10,687
TOTAL BASIC INDUSTRIES 25,398
CONGLOMERATES - 0.7%
Allied-Signal, Inc. 97,100 3,411
United Technologies Corp. 73,100 4,852
8,263
CONSTRUCTION & REAL ESTATE - 1.4%
BUILDING MATERIALS - 0.4%
Armstrong World Industries, Inc. 21,900 1,068
Cementos Apasco SA de CV Class A (a) 30,200 249
Cemex SA, Series B 180,900 1,337
Lafarge Corp. 700 15
T.J. International, Inc. 50,000 1,112
Tolmex B2 SA (a) 43,800 503
4,284
CONSTRUCTION - 0.4%
Bufete Industrial SA sponsored ADR
representing 3 ordinary certificate banco (a) 18,800 634
Centex Corp. 24,400 595
Ekran Berhad Ord (a) 81,000 659
Empresas Ica Sociedad Controladora SA de CV sponsored
ADR representing Ord. Participation Certificate 4,800 129
Kaufman & Broad Home Corp. 2,100 34
Lennar Corp. 18,900 350
Pulte Corp. 14,600 345
Redman Industries (a) 8,400 143
Schuler Homes, Inc. (a) 60,000 1,282
Schult Homes Corp. 6,500 87
4,258
ENGINEERING - 0.0%
Glenayre Technologies, Inc. 2,700 116
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
REAL ESTATE - 0.2%
Hon Kwok Land Investment Ltd. Ord. 488,000 $ 188
Hovnanian Enterprises, Inc. Class A (a) 2,000 21
South Sea Development Co. 427,922 39
Sun Hung Kai Properties Ltd. 223,300 1,503
1,751
REAL ESTATE INVESTMENT TRUSTS - 0.4%
Crown American Realty Trust (SBI) 19,400 267
Developers Diversified Realty 8,700 263
Duke Realty Investors, Inc. 55,800 1,500
Equity Residential Property Trust (SBI) 17,900 604
Excel Realty Trust, Inc. 2,800 57
Macerich Company 900 17
Manufactured Home Community 26,200 616
Property Trust of America (SBI) 7,493 148
Simon Properties Group, Inc. (a) 29,600 810
United Dominion Realty Trust, Inc 5,100 75
Vornado Realty Trust 9,200 332
4,689
TOTAL CONSTRUCTION & REAL ESTATE 15,098
DURABLES - 5.2%
AUTOS, TIRES, & ACCESSORIES - 3.2%
Autozone, Inc. (a) 190,200 5,183
BMW (Bayerische Mtr Wks) (a) 3,500 1,743
BMW AG Sub (rights) (a) 3,500 60
Chrysler Corp. 172,700 8,570
Continental Gummi-Werke AG (a) 4,400 728
Dana Corp. 7,900 407
Discount Auto Parts, Inc. 11,300 260
Echlin, Inc. 23,800 646
Federal-Mogul Corp. 28,900 853
Ford Motor Co. 92,900 5,365
General Motors Corp. 120,000 6,450
Lund International Holdings, Inc. (a) 3,600 58
O'Reilly Automotive, Inc. (a) 400 10
Pep Boys-Manny, Moe & Jack 150,500 4,703
Spartan Motors, Inc. 13,000 247
35,283
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
CONSUMER ELECTRONICS - 0.4%
Fossil, Inc. 29,500 $ 605
Harman International Industries, Inc. (a) 13,300 362
Newell Co. 16,700 758
Whirlpool Corp. 59,500 3,191
4,916
HOME FURNISHINGS - 0.2%
Ethan Allen Interiors, Inc. (a) 59,100 1,463
Haverty Furniture Companies, Inc. 21,000 310
Levitz Furniture, Inc. 18,100 199
Rhodes, Inc. (a) 4,400 68
Stanley Furniture (a) 8,200 113
2,153
TEXTILES & APPAREL - 1.4%
Fruit of the Loom, Inc. Class A (a) 63,700 1,871
Jones Apparel Group, Inc. (a) 6,900 198
Mohawk Industries Inc. (a) 122,300 2,752
NIKE, Inc. Class B 88,300 5,210
Nine West Group, Inc. (a) 31,800 870
Reebok International Ltd. 94,400 2,974
Shaw Industries, Inc. 90,300 1,625
St. John Knits (a) 200 5
Wolverine World Wide, Inc. 16,350 309
15,814
TOTAL DURABLES 58,166
ENERGY - 2.2%
ENERGY SERVICES - 0.1%
Rowan Companies, Inc. (a) 7,500 59
Schlumberger Ltd. 13,900 796
855
OIL & GAS - 2.1%
Amoco Corp. 90,400 5,322
Anadarko Petroleum Corp. 26,000 1,398
Anderson Exploration Ltd. (a) 42,700 1,077
Archer Resources Ltd. (a) 22,700 359
Barrett Resources Corp. (a) 39,500 533
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Beau Canada Exp 30,300 $ 55
British Petroleum PLC ADR 33,500 2,353
Burlington Resources, Inc. 40,100 1,669
Canadian Natural Resources Ltd. (a) 59,900 959
Elan Energy, Inc. (a) 26,700 208
Encal Energy Ltd. (a) 120,800 319
Enron Oil & Gas Co. 20,800 915
Excel Energy, Inc. (a) 44,700 123
Hugoton Energy Corp. 8,500 104
Intensity Resources Ltd. (a) 35,300 69
Inverness Petroleum Ltd. (a) 18,500 154
Louis Dreyfus Natural Gas Corp. (a) 6,300 116
Murphy Oil Corp. 3,800 160
Noble Affiliates, Inc. 1,500 42
Northrock Resources Ltd. (a) 29,200 222
Oryx Energy Co. 36,400 637
Parker & Parsley Petroleum Co. 2,700 66
Petromet Resources Ltd. Ord. (a) 73,000 482
Pinnacle Resources Ltd. 28,900 423
Renaissance Energy Ltd. (a) 2,100 47
Rio Alto Exploration Ltd. (a) 144,400 1,019
Summit Resources Ltd. 95,300 638
Unocal Corp. 119,400 3,298
YPF Sociedad Anonima sponsored ADR representing
Class D shares 34,300 905
23,672
TOTAL ENERGY 24,527
FINANCE - 8.2%
BANKS - 3.2%
AmSouth Bancorporation 7,050 223
Banacci SA de CV Class C 62,800 470
Bank of Boston Corp. 57,198 1,602
Bank of New York Co., Inc. 146,900 4,334
BanPonce Corp. 10,800 348
Chase Manhattan Corp. 102 4
Chemical Banking Corp. 102,300 3,926
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Citicorp 64,500 $ 2,548
Crestar Financial Corp. 5,543 265
First Chicago Corp. 4,132 218
Fleet Financial Group, Inc. 72 3
Grupo Financiero Bancomer SA de CV
sponsored ADR, Series C (b) 26,500 788
HSBC Holdings PLC 97,099 1,118
Mellon Bank Corp. 524 31
Mercantile Bancorporation, Inc. 9,750 355
NationsBank Corp. 182,096 10,084
Shawmut National Corp. 98,300 2,371
Signet Banking Corp. 150,177 6,270
State Street Boston Corp. 10,900 442
35,400
CREDIT & OTHER FINANCE - 1.9%
American Express Co. 81,500 2,251
American Residential Holdings Corp 17,300 311
Argentaria Corp. Bancaria de Esp 3,800 161
Beneficial Corp. 40,000 1,475
Citic Pacific Ltd. Ord. 72,000 209
Credit Acceptance Corp. (a) 10,800 259
Dean Witter Discover & Co. 140,354 5,474
First Pacific Co. Ltd. 460,000 244
Granite Industries BHD 194,000 346
Green Tree Acceptance, Inc. 82,300 4,845
Grupo Carso SA de CV Class A-1 (a) 218,600 2,178
Household International, Inc. 37,186 1,264
JCG Holdings 262,000 180
Jardine Matheson & Co. Ltd. Ord. 196,158 1,600
Mercury Finance Co. 44,700 760
North American Mortgage Co. 3,200 80
21,637
FEDERAL SPONSORED CREDIT - 1.9%
Federal Home Loan Mortgage Corporation 174,000 10,092
Federal National Mortgage Association 130,600 10,905
20,997
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - 1.0%
Allstate Corp. 81,200 $ 2,121
American Bankers Insurance Group, Inc. 6,100 135
Capital Guaranty Corp. 40,800 617
Citizens Corp. 900 14
Exel Ltd. 2,200 93
General Re Corp. 50,000 5,987
Paul Revere Corp. 9,200 216
TIG Holdings, Inc. 4,800 98
Travelers, Inc. (The) 69,400 2,273
11,554
SAVINGS & LOANS - 0.0%
Standard Federal Bank 400 11
SECURITIES INDUSTRY - 0.2%
BHC Financial, Inc. 5,625 87
Colonial Group, Inc. Class A 10,000 240
Lehman Brothers Holdings 16,300 299
Paine Webber Group, Inc. 103,900 1,714
2,340
TOTAL FINANCE 91,939
HEALTH - 7.1%
DRUGS & PHARMACEUTICALS - 4.6%
ALZA Corp. Class A 96,300 2,395
Amgen, Inc. (a) 94,500 4,400
Bristol-Myers Squibb Co. 26,400 1,442
COR Therapeutics, Inc. (a) 30,500 286
Cell Genesys, Inc. (a) 18,900 222
Cellcor, Inc. 3,000 7
Cellpro, Inc. (a) 19,200 413
Cephalon, Inc. (a) 10,800 130
Cortech, Inc. 1,500 15
Creative Biomolecules, Inc. (a) 26,500 86
Cytotheraputics, Inc. 17,800 156
Dura Pharmaceuticals, Inc. 16,900 167
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS - CONTINUED
Elan PLC:
therapeutic systems unit
(Common & 1 ADR warrant) (a) 7,093 $ 195
ADR (a) 215,550 7,625
Forest Laboratories, Inc. (a) 4,200 185
Genetics Institute, Inc. depositary share (a) 20,700 906
Immulogic Pharmaceutical Corp. (a) 3,600 26
Interferon Sciences, Inc. 1,100 4
Liposome Co, Inc. (a) 29,000 194
Magainin Pharmaceuticals, Inc. (a) 12,300 49
Marsam Pharmaceuticals, Inc. (a) 28,800 295
Molecular Biosystems, Inc. (a) 6,000 76
Perspective Biosystems, Inc. (a) 4,000 75
Pfizer, Inc. 186,600 11,896
Protein Design Labs, Inc. (a) 1,800 33
Schering-Plough Corp. 130,600 8,522
SciGenics, Inc. (Callable) 2,900 31
Somatix Therapy Corp. (a) 10,800 63
Therapeutic Discovery Corp. Unit (1 Class A + 1
Alza Corp. warrant) 3,280 18
US Bioscience, Inc. (a) 304 2
Univax Biologics, Inc. (a) 100 1
Warner-Lambert Co. 174,100 12,252
52,167
MEDICAL EQUIPMENT & SUPPLIES - 1.6%
Boston Scientific Corp. (a) 119,500 1,763
Cardinal Health, Inc. 14,000 669
Dianon Systems, Inc. 3,700 19
Johnson & Johnson 221,700 9,810
Mallinckrodt Group, Inc. 101,400 3,017
McKesson Corp. 6,876 570
Medtronic, Inc. 27,500 2,262
PSICOR, Inc. (a) 300 3
Resound Corp. (a) 1,800 16
18,129
MEDICAL FACILITIES MANAGEMENT - 0.9%
American Healthcorp, Inc. (a) 2,100 17
Columbia/HCA Healthcare Corp. 55,070 2,189
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - CONTINUED
GranCare, Inc. (a) 900 $ 17
HealthTrust, Inc. - The Hospital Co. (a) 13,600 396
Horizon Healthcare Corp. (a) 19,300 480
Integrated Health Services, Inc. (a) 4,700 137
Lincare Holdings, Inc. (a) 4,000 92
Manor Care, Inc. 13,150 340
Ornda Healthcorp (a) 7,096 114
PHP Healthcare Corp. (a) 24,700 281
Quantum Health Resources, Inc. (a) 10,100 326
Quorum Health Group, Inc. (a) 9,200 156
U.S. Healthcare, Inc. 97,200 3,912
United HealthCare Corp. 27,000 1,299
9,756
TOTAL HEALTH 80,052
INDUSTRIAL MACHINERY & EQUIPMENT - 3.7%
ELECTRICAL EQUIPMENT - 3.3%
American Power Conversion Corp. (a) 68,400 1,402
Duracell International, Inc. 55,500 2,338
General Electric Co. 553,100 27,447
Gilat Satellite Networks (a) 800 8
Hutchison Whampoa Ltd. Ord. 455,000 2,002
Scientific-Atlanta, Inc. 72,100 2,695
Star Paging International Holdings Ltd. 2,240,000 928
36,820
INDUSTRIAL MACHINERY & EQUIPMENT - 0.4%
Caterpillar, Inc. 26,700 2,854
Flow International Corp. (a) 37,200 218
Perspective Technologies II (a) 80,000 1,720
4,792
POLLUTION CONTROL - 0.0%
Weston (Roy F.), Inc. Class A (a) 700 6
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 41,618
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - 3.9%
BROADCASTING - 1.0%
American Telecasting, Inc. (a) 15,600 $ 300
BET Holdings, Inc. Class A (a) 2,400 38
Broadcasting Partners, Inc Class A (a) 1,900 21
CAI Wireless Systems, Inc. 2,800 32
Clear Channel Communications, Inc. (a) 41,000 1,502
Comcast Corp. Class A Special 88,200 1,538
Emmis Broadcasting Corp. Class A 5,700 76
Evergreen Media Corp. Class A (a) 1,700 25
Gaylord Entertainment Co. Class A 71,800 1,651
Grupo Televisa GDS (a)(b) 17,400 1,005
Infinity Broadcasting Corp. (a) 87,500 2,056
Jacor Communications, Inc. Class A (a) 15,100 204
Peoples Choice TV Corp. (a) 1,500 39
Scandinavian Broadcasting Corp. (a) 15,600 394
Television Broadcast Limited Ord (a) 309,000 1,250
Time Warner, Inc. 20,914 810
Viacom, Inc. (a) 17,700 538
11,479
ENTERTAINMENT - 0.4%
Carnival Cruise Lines, Inc. Class A 36,900 1,725
Casino America, Inc. (a) 3,300 63
Discovery Zone, Inc. (a) 6,700 99
Disney (Walt) Co. 48,100 2,080
Players International, Inc. 24,000 486
4,453
LEISURE DURABLES & TOYS - 0.3%
Callaway Golf Co. 34,800 1,492
Champion Enterprises, Inc. (a) 13,800 442
Coachmen Industries, Inc. 1,200 16
Coastcast Corp. (a) 900 26
Cobra Golf, Inc. 42,300 1,322
Fleetwood Enterprises, Inc. 19,000 399
3,697
LODGING & GAMING - 0.3%
Argosy Gaming Corp. (a) 4,700 73
Caesars World, Inc. (a) 12,400 485
Circus Circus Enterprises, Inc. (a) 16,200 375
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
International Game Technology Corp. 20,700 $ 458
Mirage Resorts, Inc. (a) 106,100 2,082
3,473
PUBLISHING - 0.5%
American Greetings Corp. Class A 34,100 959
Belo (A.H.) Corp. Class A 8,900 444
Dow Jones & Co Inc. 19,100 695
Gannett Co., Inc. 19,000 1,005
Knight-Ridder, Inc. 14,600 823
Ming Pao Enterprise Corp. Ltd. 367,000 299
New York Times Co. (The) Class A 1,200 31
Tribune Co. 8,100 476
Washington Post Co. Class B 1,400 325
5,057
RESTAURANTS - 1.4%
Apple South, Inc. 58,900 1,281
Applebee's International, Inc. 7,800 111
Brinker International, Inc. (a) 17,850 448
Landrys Seafood Restaurants, Inc. 33,700 750
Lone Star Steakhouse Saloon (a) 29,100 567
McDonald's Corp. 189,500 11,749
Outback Steakhouse, Inc. (a) 14,800 389
Quality Dining, Inc. 8,600 97
Quantum Restaurant Group, Inc. (a) 8,300 81
Sbarro, Inc. 13,100 478
15,951
TOTAL MEDIA & LEISURE 44,110
NONDURABLES - 2.0%
BEVERAGES - 0.8%
COTT Corp. 34,600 707
Coca-Cola Company (The) 156,400 6,315
Coca-Cola Femsa SA de CV sponsored ADR (a) 3,900 121
Dr. Pepper/Seven-Up Companies, Inc. (a) 5,300 130
Emvasa Del Valle de Enah Ord (a) 30,600 122
PepsiCo, Inc. 33,400 1,202
8,597
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
FOODS - 0.0%
Brothers Gourmet Coffees, Inc. (a) 800 $ 10
Dreyer's Grand Ice Cream, Inc. 14,300 325
Herdez SA de CV Class B (a) 104,400 130
International Multifoods Corp. 2,000 32
497
HOUSEHOLD PRODUCTS - 0.6%
BeautiControl Cosmetics, Inc. 10,000 135
First Brands Corp. 36,200 1,285
Gillette Company 72,400 5,050
Safeskin Corp. (a) 4,700 71
Safety First, Inc. (a) 20,000 525
Stanhome, Inc. 200 7
7,073
TOBACCO - 0.6%
Philip Morris Companies, Inc. 127,300 6,270
RJR Nabisco Holdings Corp. (a) 31,400 180
6,450
TOTAL NONDURABLES 22,617
PRECIOUS METALS - 0.0%
MK Gold Co. (a) 59,200 326
RETAIL & WHOLESALE - 10.6%
APPAREL STORES - 1.9%
AnnTaylor Stores Corp. (a) 29,700 995
Catherines Stores Corp. (a) 7,200 72
Cato Corp. Class A 93,050 1,163
Charming Shoppes, Inc. 153,300 1,456
Claire's Stores, Inc. 49,300 567
Designs, Inc. (a) 60,550 863
Filene's Basement Corp. (a) 68,500 556
Gap, Inc. 138,900 6,025
Genesco, Inc. (a) 900 3
Giordano Holdings Ltd. Ord. 82,000 41
Gymboree Corp. (a) 15,900 725
Limited, Inc. (The) 175,600 3,095
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
APPAREL STORES - CONTINUED
One Price Clothing Stores, Inc. (a) 4,050 $ 78
Ross Stores, Inc. (a) 19,500 261
Sportmart, Inc. (a) 6,200 88
TJX Companies, Inc. 156,200 3,788
Talbots, Inc. 17,800 523
United States Shoe Corp. 35,000 652
Urban Outfitters, Inc. (a) 400 10
20,961
DRUG STORES - 0.0%
Revco (D.S.), Inc. (a) 17,200 294
GENERAL MERCHANDISE STORES - 2.8%
Consolidated Stores Corp. (a) 59,600 857
Dayton Hudson Corp. 94,100 7,399
Federated Department Stores, Inc. (a) 42,700 934
Lechters, Inc. (a) 3,200 39
May Department Stores Co. (The) 49,500 1,918
Penney (J.C.) Co., Inc. 79,600 4,070
Proffitts, Inc. (a) 15,200 296
Sears, Roebuck & Co. 240,200 12,160
Wal-Mart Stores, Inc. 147,100 3,457
31,130
GROCERY STORES - 0.4%
Dairy Farm International Holdings Ltd. Ord. 135,000 197
Giant Food, Inc. Class A 17,100 368
Kroger Co. (The) (a) 18,100 432
Safeway, Inc. (a) 41,400 952
Starbucks Corp. (a) 90,800 2,588
Stop & Shop Companies, Inc. (a) 7,900 190
4,727
RETAIL & WHOLESALE, MISC - 5.5%
Amway Asia Pacific Ltd. (a) 1,100 38
Bed Bath & Beyond, Inc. (a) 96,200 2,718
Best Buy Co., Inc. (a) 68,400 1,975
Body Shop International PLC (a) 14,600 52
Circuit City Stores, Inc. 49,400 957
Eagle Hardware & Garden, Inc. (a) 28,300 361
Good Guys, Inc. (a) 5,800 70
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISC - CONTINUED
Home Depot, Inc. (The) 313,500 $ 14,147
Lillian Vernon Corp. 6,400 122
Little Switzerland, Inc. (a) 29,000 188
Lowe's Companies, Inc. 394,700 12,384
Micro Warehouse, Inc. (a) 15,400 389
National Record Mart, Inc. 13,000 58
Office Depot, Inc. (a) 326,100 12,188
Payless Cashways, Inc. (a) 67,800 1,008
Rex Stores Corp. (a) 33,400 526
Spiegel, Inc. Class A 21,700 461
Staples, Inc. 222,000 6,438
Sunglass Hut International, Inc. (a) 40,400 1,182
Tandy Corp. 52,100 1,947
Toys "R" Us, Inc. (a) 94,600 3,358
Viking Office Products, Inc. (a) 3,100 155
Waban, Inc. (a) 56,000 1,050
61,772
TOTAL RETAIL & WHOLESALE 118,884
SERVICES - 0.7%
ADVERTISING - 0.0%
ADVO-Systems, Inc. 700 12
EDUCATIONAL SERVICES - 0.0%
Informatics Holdings Ltd. 184,000 239
LEASING & RENTAL - 0.4%
Blockbuster Entertainment Corp. 101,800 2,876
Hollywood Entertainment Corp. (a) 36,800 1,003
Ryder Systems, Inc. 29,300 707
4,586
PRINTING - 0.2%
Cyrk, Inc. (a) 63,100 1,609
Reynolds & Reynolds Co. Class A 12,400 282
1,891
SERVICES - 0.1%
Health Care Services Group, Inc. (a) 12,600 158
Interim Services, Inc. 1,900 49
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - CONTINUED
SERVICES - CONTINUED
Kelly Services, Inc. Class A 21,900 $ 591
Oroamerica, Inc. (a) 9,800 127
Robert Half International, Inc. (a) 1,500 51
TRO Learning, Inc. 700 5
981
TOTAL SERVICES 7,709
TECHNOLOGY - 26.5%
COMMUNICATIONS EQUIPMENT - 4.0%
ADC Telecommunications, Inc. (a) 4,900 198
Active Voice Corp. 3,000 63
Cabletron Systems, Inc. (a) 84,200 8,336
Centigram Communications Corp. (a) 72,100 1,694
Cisco Systems, Inc. (a) 122,700 3,037
DSC Communications Corp. (a) 342,200 7,614
Data Race, Inc. (a) 400 3
Digital Link Corp. 1,200 19
Digital Systems International, Inc 400 2
General Instrument Corp. (a) 31,800 1,952
Global Village Communication 1,300 10
Level One Communications, Inc. (a) 49,400 914
Newbridge Networks Corp. (a) 161,600 7,454
Octel Communications Corp. (a) 18,120 362
S Megga International 3,032,000 824
Telco Systems, Inc. (a) 28,800 425
Teledata Communications Ltd. (a) 700 9
Tellabs, Inc. (a) 50,200 1,776
Union Switch and Signal, Inc. (a) 28,900 520
Wellfleet Communications, Inc. (a) 153,600 4,109
3Com Corp. (a) 123,400 5,800
45,121
COMPUTER SERVICES & SOFTWARE - 5.6%
Adobe Systems, Inc. 6,000 172
Alantec Corp. 900 13
Atria Software, Inc. 3,800 61
Brock Control Systems, Inc. (a) 41,400 869
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
CUC International, Inc. (a) 108,100 $ 3,162
Cadence Design Systems, Inc. (a) 128,800 1,915
Ceridian Corp. (a) 18,000 441
Chipcom Corp. (a) 48,000 1,920
Compuware Corp. (a) 78,400 3,322
Davidson & Associates, Inc. (a) 300 6
Electronics for Imaging Incorporated (a) 8,100 139
Equifax Inc. 40,500 1,129
FTP Software, Inc. (a) 21,600 378
IMRS, Inc. (a) 2,700 70
Intelligent Electronics, Inc. 73,700 1,585
LEGENT Corp. (a) 126,300 3,884
Landmark Graphics Corp. (a) 3,600 120
Lotus Development Corp. (a) 63,800 3,828
Macromedia, Inc. (a) 800 10
Mapinfo Corp. 300 7
MicroAge, Inc. (a) 5,550 141
Microsoft Corp. (a) 296,200 15,921
Netmanage, Inc. (a) 1,000 16
Novell, Inc. (a) 34,300 609
Oracle Systems Corp. (a) 297,800 10,200
Parametric Technology Corp. (a) 193,100 5,721
Powersoft Corp. (a) 5,800 318
Recognition Equipment, Inc. (a) 26,900 245
Sterling Software, Inc. (a) 10,000 311
Structural Dynamics Research Corp. (a) 50,800 502
Sybase, Inc. (a) 68,100 3,677
Synopsys, Inc. (a) 40,000 1,515
Viewlogic Systems, Inc. (a) 4,400 97
Wall Data, Inc. (a) 25,000 916
63,220
COMPUTERS & OFFICE EQUIPMENT - 8.5%
ADAPTEC, Inc. (a) 49,100 865
Compaq Computer Corp. (a) 460,600 54,466
Danka Business Systems PLC Sponsored ADR 8,000 339
EMC Corp. (a) 393,400 6,639
Fore Systems, Inc. 1,200 31
Hutchinson Technology, Inc. (a) 121,900 4,145
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
International Business Machines Corp. 248,800 $ 15,737
MICROS Systems, Inc. (a) 7,500 203
Netframe Systems, Inc. (a) 14,900 149
Seagate Technology (a) 244,600 5,702
Silicon Graphics, Inc. (a) 144,900 3,278
Sun Microsystems, Inc. (a) 70,900 1,480
Sunward Technologies, Inc. (a) 27,400 291
Supermac Technology, Inc. (a) 4,700 33
Tech Data Corp. (a) 81,600 1,285
Western Digital Corp. (a) 85,700 1,200
95,843
ELECTRONIC INSTRUMENTS - 1.8%
Applied Materials, Inc. (a) 356,300 15,544
Credence Systems Corp. (a) 37,800 718
Megatest Corp. (a) 33,700 602
Novellus System, Inc. (a) 84,600 2,792
19,656
ELECTRONICS - 6.6%
Advanced Micro Devices, Inc. (a) 171,700 4,636
Cidco, Inc. (a) 78,500 1,492
Cirrus Logic, Inc. (a) 45,900 1,563
Cypress Semiconductor Corp. 50,000 831
Intel Corp. 246,700 15,419
Linear Technology Corp. 91,700 4,127
Maxim Integrated Products, Inc. (a) 77,600 4,074
Micron Technology, Inc. 209,700 7,051
Motorola, Inc. 183,600 8,583
National Semiconductor Corp. (a) 28,400 550
Sanmina Corp. (a) 40,500 749
Texas Instruments, Inc. 299,600 24,043
Tokyo Electron Ltd. 36,000 1,109
74,227
TOTAL TECHNOLOGY 298,067
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - 2.3%
AIR TRANSPORTATION - 1.1%
AMR Corp. (a) 101,200 $ 5,591
Atlantic Southeast Airlines, Inc. 99,200 2,697
Comair Holdings, Inc. 25,300 474
Delta Air Lines, Inc. 35,900 1,638
East Asiatic Co. Hong Kong Ltd. 227,000 48
Mesa Airlines, Inc. (a) 37,500 450
Technology Resources (a) 309,000 1,258
12,156
RAILROADS - 0.8%
CSX Corp. 94,100 7,199
Chicago & North Western Holdings Corp. (a) 41,100 976
Illinois Central Corp., Series A 6,900 240
8,415
SHIPPING - 0.0%
Nu-Kote Holdings, Inc. Class A (a) 10,400 187
Overseas Shipholding Group, Inc. 200 4
Shun Tak Holdings Ltd. 166,000 185
Transportacion Maritima Mexicana SA de CV
sponsored ADR Class A 14,000 108
484
TRUCKING & FREIGHT - 0.4%
Airborne Freight Corp. 1,000 38
Arkansas Best Corp. 5,000 54
Celadon Group, Inc. (a) 2,300 32
Federal Express Corp. (a) 52,400 4,009
Landstar System, Inc. 8,800 232
4,365
TOTAL TRANSPORTATION 25,420
UTILITIES - 4.9%
CELLULAR - 1.2%
Airtouch Communications 304,935 7,433
Arch Communications Group, Inc. 68,700 996
Century Telephone Enterprises, Inc. 3,000 78
IDB Communications Group, Inc. 124,740 1,809
Metrocall, Inc. (a) 11,000 159
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
CELLULAR - CONTINUED
Nationwide Cellular Service, Inc. (a) 2,300 $ 30
Paging Network, Inc. (a) 18,750 455
Rogers Cantel Mobile Communications, Inc. Class B
(non-vtg) (a) 31,700 803
United States Cellular Corp. (A) 41,300 1,141
12,904
ELECTRIC UTILITY - 0.1%
Consolidated Electric Power Asia Ltd. sponsored ADR (b) 16,000 260
Hong Kong Electric Holdings Ord. 314,000 984
1,244
TELEPHONE SERVICES - 3.6%
ALC Communications Corp (a) 123,100 3,908
AT & T Corporation 46,500 2,534
Ameritech Corp. 185,100 7,242
BellSouth Corp. 25,100 1,493
LCI International, Inc. (a) 36,100 1,399
MCI Communications Corp. 51,100 1,226
MFS Communications, Inc. (a) 37,300 1,175
NYNEX Corp. 6,600 249
Pacific Telesis Group 6,200 188
Southwestern Bell Corp. 84,900 3,492
Sprint Corporation 112,500 4,275
Telebras PN (Pfd. Reg.) 44,000,000 1,690
Telecom Argentina Stet France 39,500 255
Telefonica Argentina Class B 48,600 351
Telefonos de Mexico SA sponsored ADR
representing share Ord. Class L 123,300 7,660
Telephone & Data Systems, Inc. 69,500 2,849
39,986
TOTAL UTILITIES 54,134
TOTAL COMMON STOCKS
(Cost $890,917) 916,711
PREFERRED STOCKS - 0.3%
SHARES VALUE (NOTE 1)
(000S)
DURABLES - 0.3%
AUTOS, TIRES, & ACCESSORIES - 0.3%
Fiat Spa ADR 805,800 $ 2,098
Porsche AG:
(non-vtg.) 2,700 1,254
NV (rfd.) 675 305
TOTAL PREFERRED STOCKS
(Cost $3,148) 3,657
REPURCHASE AGREEMENTS - 18.0%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 4.26%
dated 5/31/94 due 6/1/94 $ 201,432 201,408
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $1,095,473) $ 1,121,776
LEGEND
1. Non-income producing
2. 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 $2,053,000 or .2% of net
assets.
INCOME TAX INFORMATION
At May 31, 1994, the aggregate cost of investment securities for income tax
purposes was $1,096,495,000. Net unrealized appreciation aggregated
$25,281,000, of which $68,275,000 related to appreciated investment
securities and $42,994,000 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) MAY 31, 1994 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 1,121,776
agreements of $201,408) (cost $1,095,473) (Notes 1
and 2) - See accompanying schedule
Cash 1
Receivable for investments sold 7,741
Receivable for fund shares sold 13,212
Dividends receivable 1,123
Other receivables 49
TOTAL ASSETS 1,143,902
LIABILITIES
Payable for investments purchased $ 80,895
Payable for fund shares redeemed 480
Accrued management fee 554
Distribution fees payable 360
Other payables and accrued expenses 520
TOTAL LIABILITIES 82,809
NET ASSETS $ 1,061,093
Net Assets consist of (Note 1):
Paid in capital $ 1,062,469
Distributions in excess of net investment income (471)
Accumulated undistributed net realized gain (loss) on (27,207)
investments
Net unrealized appreciation (depreciation) on investment 26,302
securities
NET ASSETS $ 1,061,093
CALCULATION OF MAXIMUM OFFERING PRICE $28.58
CLASS A:
NET ASSET VALUE, and redemption price per share
($697,960 (divided by) 24,418 shares)
Maximum offering price per share (100/95.25 of $28.58) $30.01
INSTITUTIONAL CLASS: $28.84
NET ASSET VALUE, offering price and redemption price per
share ($363,133 (divided by) 12,591 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED MAY 31, 1994 (UNAUDITED)
INVESTMENT INCOME $ 3,968
Dividends
Interest (Note 5) 3,033
TOTAL INCOME 7,001
EXPENSES
Management fee (Note 4) $ 2,880
Transfer agent fees (Note 4) 890
Class A
Institutional Class 250
Distribution fees - Class A (Note 4) 1,781
Accounting fees and expenses (Note 4) 209
Non-interested trustees' compensation 3
Custodian fees and expenses 112
Registration fees - Class A 149
Registration fees - Institutional Class 90
Audit 26
Legal 12
Interest (Note 6) 1
Miscellaneous 7
Total expenses before reductions 6,410
Expense reductions (Note 7) (64) 6,346
NET INVESTMENT INCOME 655
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 10,741
(NOTES 1 AND 3)
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on (3,684)
investment securities
NET GAIN (LOSS) 7,057
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 7,712
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1994 1993
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 655 $ 1,059
Net investment income
Net realized gain (loss) on investments 10,741 37,971
Change in net unrealized appreciation (depreciation) (3,684) 9,617
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 7,712 48,647
FROM OPERATIONS
Distributions to shareholders from:
Net investment income
Class A - (92)
Institutional Class (1,108) (658)
Net realized gain
Class A (19,907) (625)
Institutional Class (14,674) (3,309)
Share transactions - net increase (decrease) (Note 8) 414,620 428,507
TOTAL INCREASE (DECREASE) IN NET ASSETS 386,643 472,470
NET ASSETS
Beginning of period 674,450 201,980
End of period (including under (over) distribution of net $ 1,061,093 $ 674,450
investment income of $(471) and $1,329,
respectively)
</TABLE>
FINANCIAL HIGHLIGHTS CLASS A
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS YEAR ENDED PERIOD ENDED**
ENDED MAY 31, NOVEMBER 30, NOVEMBER 30,
1994
(UNAUDITED) 1993 1992
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 29.50 $ 26.33 $ 23.78
Income from Investment Operations
Net investment income (.01) (.07)(double dagger) .01(double dagger)
Net realized and unrealized gain (loss) .54 3.82 2.54
on investments
Total from investment operations .53 3.75 2.55
Less Distributions
From net investment income - (.08) -
From net realized gain (1.45) (.50) -
Total distributions (1.45) (.58) -
Net asset value, end of period $ 28.58 $ 29.50 $ 26.33
TOTAL RETURN(dagger) (dagger)(dagger) 1.80% 14.52% 10.72%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 697,960 $ 377,984 $ 22,655
Ratio of expenses to average net 1.82%* 1.84% 1.47%*
assets***
Ratio of expenses to average net assets 1.84%* 1.85% 1.47%*
before expense reductions***
Ratio of net investment income to .16%* (.24)% .25%*
average net assets
Portfolio turnover 129%* 160% 240%
</TABLE>
* ANNUALIZED
** FOR THE PERIOD SEPTEMBER 10, 1992 (COMMENCEMENT OF SALES OF CLASS A
SHARES) TO NOVEMBER 30, 1992.
*** SEE NOTE 7 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.
FINANCIAL HIGHLIGHTS INSTITUTIONAL CLASS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED NOVEMBER 30,
ENDED MAY 31,
1994
(UNAUDITED) 1993 1992 1991 1990 1989
SELECTED PER-SHARE
DATA
Net asset value, $ 29.74 $ 26.37 $ 24.28 $ 15.55 $ 17.32 $ 12.02
beginning of period
Income from Investment
Operations
Net investment .10 .19(double dagger) .17 .04 .01 .06
income
Net realized and .56 3.78 4.55 8.69 .34 5.50
unrealized gain
(loss) on
investments
Total from investment .66 3.97 4.72 8.73 .35 5.56
operations
Less Distributions
From net investment (.11) (.10) (.03) - (.08) (.26)
income
From net realized gain (1.45) (.50) (2.60) - (2.04) -
Total distributions (1.56) (.60) (2.63) - (2.12) (.26)
Net asset value, end of $ 28.84 $ 29.74 $ 26.37 $ 24.28 $ 15.55 $ 17.32
period
TOTAL RETURN (dagger) 2.24% 15.36% 21.14% 56.14% 2.75% 47.18%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 363,133 $ 296,466 $ 179,325 $ 68,766 $ 27,473 $ 24,523
period (000 omitted)
Ratio of expenses to .86%* .94% .98% 1.13% 1.74% 1.60%
average net assets**
Ratio of expenses to .87%* .95% .98% 1.13% 1.74% 1.60%
average net assets
before expense
reductions**
Ratio of net investment .13%* .66% .73% .25% .07% .38%
income to average net
assets
Portfolio turnover 129%* 160% 240% 254% 262% 269%
</TABLE>
* ANNUALIZED
** SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS.
(dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN 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 May 31, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Equity Portfolio Growth(the fund) is a fund of Fidelity
Advisor Series I (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
The fund offers two classes of shares each of which has 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 (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
are valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and 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 practicable 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."
SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Dividend and
interest income is recorded net of foreign taxes where recovery of such
taxes is uncertain.
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.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
non-taxable dividends and losses deferred due to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income may include temporary book and tax
basis differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective December
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of November 30, 1993 have been reclassified to
reflect an increase in paid in capital of $49,562,000, a decrease in
undistributed net investment income of $1,347,000 and a decrease in
accumulated net realized gain on investments of $48,215,000.
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
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
due to changes in the value of the foreign currency or if the counterparty
does not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission , 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 $786,359,000 and $457,674,000, 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 annualized rate of
.65% 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, Class
A 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, Class A paid FDC $1,781,000
FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN -
CONTINUED
of which $11,135,000 was paid to securities dealers, banks and other
financial institutions for selling shares of Class A 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 $75,000 for the
period.
SALES LOAD. FDC received sales charges for selling shares of Class A. 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 $5,448,000 of which
$4,754,000 was paid to securities dealers, banks and other financial
institutions.
TRANSFER AGENT FEE. Fidelity Investments Institutional Operations Company
(FIIOC), an affiliate of FMR, and State Street Bank and Trust Company are
the transfer, dividend disbursing and shareholder servicing agents for the
Institutional Class and Class A, 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 $264,000 for the period.
5. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a lender. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $29,973,000 and $23,383,000,
respectively. The weighted average interest rate was 3.65%. Interest earned
from the interfund lending program amounted to $14,000 and is included in
interest income on the Statement of Operations.
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $6,739,000 and $6,739,000,
respectively. The weighted average interest rate was 3.88%.
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$64,000 under this arrangement.
8. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30,
AMOUNTS IN THOUSANDS 1994 1993 1994 1993
CLASS A
Shares sold 14,506 14,584 $ 421,994 $ 412,420
Reinvestment of distributions 591 22 16,940 564
Shares redeemed (3,491) (2,654) (101,428) (75,501)
Net increase (decrease) 11,606 11,952 $ 337,506 $ 337,483
INSTITUTIONAL CLASS
Shares sold 4,908 7,349 $ 145,034 $ 209,624
Reinvestment of distributions 294 78 8,468 2,044
Shares redeemed (2,579) (4,258) (76,388) (120,644)
Net increase (decrease) 2,623 3,169 $ 77,114 $ 91,024
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
Chase Manhattan Bank, N.A.
New York, NY
EQUITY FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Growth Opportunities Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Strategic Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Portfolio Income
Fidelity Advisor Income & Growth Fund
FIXED-INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
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
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
(2_FIDELITY_LOGOS)FIDELITY ADVISOR
(registered trademark)
EQUITY PORTFOLIO GROWTH -
INSTITUTIONAL CLASS
SEMIANNUAL REPORT
MAY 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on stock market
strategies.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the past six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market
values.
FINANCIAL STATEMENTS 30 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 35 Notes to the financial statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS
OF, OR
GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE
FDIC, THE
FEDERAL RESERVE BOARD OR ANY OTHER AGENCY,AND ARE SUBJECT TO INVESTMENT
RISK,
INCLUDING THE POSSIBLE LOSS OF PRINCIPAL. NEITHER THE FUND NOR FIDELITY
DISTRIBUTORS
CORPORATION IS A BANK.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
The first few months of 1994 were an unsettling time for many investors.
After three years of a nearly perfect environment for stock market
investing, stock prices fell in March and April. Investors disagree about
whether this decline represents only a short-term correction or signals the
beginning of a longer bear market. One can collect statistics to support
either opinion, but of course, nobody knows for sure what will happen to
stock prices in the months ahead.
We do know, however, that market declines are a normal part of stock market
investing. We have historically seen corrections of 10% or more every two
years. That's why I thought this might be a good time to review three basic
investment principles that have proven helpful to successful stock market
investors in every market cycle.
First, take a long-term approach when investing in stocks and stock funds.
If you can afford to leave your money invested through the market's
inevitable ups and downs, you will greatly reduce your vulnerability to any
single decline. Over time, stock prices have gone up - and have
significantly outperformed other types of investments and stayed ahead of
inflation.
Second, you can further manage risk by diversifying your investments. A
stock mutual fund is already diversified, because it invests in many
different companies. You can increase your diversification by investing in
a number of different stock funds, or in different investment categories,
such as bonds. You should also keep money you'll need in the near future in
a more stable investment.
Finally, it makes good sense to follow a regular investment plan, investing
a set amount of money at the same time each month or quarter. That way, you
can avoid getting caught up in the excitement of a rapidly-rising market -
and won't end up buying all your shares at market highs. This strategy
won't assure a profit or protect you from a loss in a declining market, but
it should help you lower the average cost of your purchases. For this to be
effective, you must continue to buy shares in both up and down markets.
Remember to contact your investment professional if you need help with your
investments.
Best regards,
Edward C. Johnson 3d
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $100,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value). On September
10, 1992 the fund began offering Class A shares. All performance
information for Class A prior to September 10, 1992 does not reflect Class
A's 12b-1 fee and revised transfer agent fee arrangements, which if
included, would lower Class A's performance.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED MAY 31, 1994 PAST 6 PAST 1 PAST 5 PAST 10
MONTHS YEAR YEARS YEARS
Advisor Equity Portfolio Growth -
Institutional Class 2.24% 6.62% 149.70% 586.85%
S&P 500(Registered trademark) 0.24% 4.26% 66.69% 328.17%
Average Growth Fund -0.01% 4.62% 64.33% 275.71%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one, five, or ten years. You
can compare the fund's returns to the performance of the Standard &
Poor's 500 Composite Stock Price Index - a common proxy for the U.S. stock
market. You can also compare them to the average growth fund, which
reflects the performance of 487 growth funds tracked by Lipper Analytical
Services. Both benchmarks include reinvested dividends and capital gains,
if any, and exclude the effects of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
<TABLE>
<CAPTION>
<S> <C> <C> <C>
PERIODS ENDED MAY 31, 1994 PAST 1 PAST 5 PAST 10
YEAR YEARS YEARS
Advisor Equity Portfolio Growth - Institutional Class 6.62% 20.08% 21.25%
S&P 500(Registered trademark) 4.26% 10.76% 15.65%
Average Growth Fund 4.62% 10.16% 13.66%
</TABLE>
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$100,000 OVER 10 YEARS
05/31/84 100000.00 100000.00
06/30/84 103899.72 102170.00
07/31/84 99303.62 100903.09
08/31/84 116434.54 112052.88
09/30/84 113788.30 112075.29
10/31/84 115181.06 112512.39
11/30/84 111838.44 111252.25
12/31/84 114345.41 114189.31
01/31/85 131754.88 123084.66
02/28/85 136350.98 124598.60
03/31/85 132451.26 124685.82
04/30/85 131197.78 124573.60
05/31/85 138579.39 131773.95
06/30/85 140250.70 133842.80
07/31/85 145403.90 133642.04
08/31/85 146518.11 132506.08
09/30/85 138022.29 128358.64
10/31/85 143454.04 134288.81
11/30/85 154456.83 143501.02
12/31/85 161838.44 150446.47
01/31/86 167308.74 151288.97
02/28/86 181382.78 162605.39
03/31/86 191292.05 171678.77
04/30/86 197323.78 169738.80
05/31/86 205796.93 178768.90
06/30/86 207376.67 181790.10
07/31/86 189999.54 171628.03
08/31/86 196462.11 184362.83
09/30/86 178510.52 169116.03
10/31/86 191579.28 178874.02
11/30/86 189281.47 183220.66
12/31/86 185322.22 178548.53
01/31/87 207554.67 202599.02
02/28/87 226307.20 210601.68
03/31/87 224251.30 216688.07
04/30/87 216027.70 214759.54
05/31/87 214604.38 216627.95
06/30/87 218716.18 227567.66
07/31/87 228679.39 239105.34
08/31/87 242438.11 248023.97
09/30/87 238326.31 242592.25
10/31/87 175542.27 190337.88
11/30/87 156881.02 174654.04
12/31/87 184273.98 187945.21
01/31/88 183765.87 195857.70
02/29/88 194774.89 204984.67
03/31/88 197654.17 198650.65
04/30/88 195452.37 200855.67
05/31/88 194097.41 202603.11
06/30/88 211373.10 211902.60
07/31/88 207138.86 211097.37
08/31/88 197992.91 203920.05
09/30/88 209001.93 212607.05
10/31/88 206800.12 218517.53
11/30/88 203582.10 215392.72
12/31/88 212966.46 219162.10
01/31/89 229747.73 235204.76
02/28/89 229920.73 229348.16
03/31/89 237532.86 234691.98
04/30/89 253276.11 246872.49
05/31/89 275074.47 256870.83
06/30/89 264867.30 255406.66
07/31/89 283032.60 278469.88
08/31/89 294104.78 283927.89
09/30/89 302235.91 282763.79
10/31/89 298429.85 276203.67
11/30/89 299640.87 281838.22
12/31/89 308463.54 288602.34
01/31/90 280151.42 269237.12
02/28/90 291436.67 272710.28
03/31/90 308463.54 279937.11
04/30/90 302325.95 272938.68
05/31/90 345289.10 299550.20
06/30/90 348258.90 297513.26
07/31/90 338359.56 296561.22
08/31/90 295198.42 269752.08
09/30/90 270846.04 256615.16
10/31/90 274211.81 255511.71
11/30/90 307869.58 272017.77
12/31/90 329846.13 279607.06
01/31/91 377758.95 291797.93
02/28/91 411812.69 312661.48
03/31/91 452202.01 320227.89
04/30/91 450618.12 320996.44
05/31/91 474178.55 334863.48
06/30/91 434779.17 319526.74
07/31/91 470020.83 334416.68
08/31/91 495363.15 342342.36
09/30/91 496551.07 336625.24
10/31/91 497936.98 341136.02
11/30/91 480712.12 327388.24
12/31/91 543281.80 364841.45
01/31/92 558494.27 358055.40
02/29/92 561365.14 362710.12
03/31/92 534864.82 355637.27
04/30/92 523823.02 366093.01
05/31/92 521393.82 367886.86
06/30/92 504168.61 362405.35
07/31/92 521835.49 377227.73
08/31/92 509247.84 369494.56
09/30/92 518743.79 373854.60
10/31/92 546127.45 375163.09
11/30/92 582344.56 387956.15
12/31/92 598358.01 392728.01
01/31/93 615086.35 396026.92
02/28/93 599500.25 401412.89
03/31/93 618474.64 409882.70
04/30/93 608535.67 399963.54
05/31/93 644225.59 410682.56
06/30/93 646936.22 411873.54
07/31/93 636093.71 410226.05
08/31/93 659811.69 425773.62
09/30/93 679689.62 422495.16
10/31/93 688273.27 431240.81
11/30/93 671783.63 427144.02
12/31/93 692354.21 432312.46
01/31/94 717336.05 447011.09
02/28/94 711620.23 434897.09
03/31/94 682802.94 415935.57
04/30/94 690662.20 421259.55
05/31/94 686613.49 428168.21
$100,000 OVER 10 YEARS: Let's say you invested $100,000 in Advisor Equity
Portfolio Growth - Institutional Class on May 31, 1984. As the chart shows,
by May 31, 1994, the value of your investment would have grown to $686,852
- - a 586.85% increase on your initial investment. For comparison, look at
how the S&P 500 did over the same period. With dividends reinvested,
the same $100,000 investment would have grown to $428,168 - a 328.17%
increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
For the period ended May 31, 1994, Fidelity Advisor Equity Portfolio Growth
- - Class A shares' cumulative total returns were 1.80%, 5.74%, 146.43%, and
577.86% for six months, one year, five years, and ten years, respectively.
For the period ended May 31, 1994, Class A shares' average annual returns
(which include the effect of the 4.75% sales charge) were 0.72%, 18.61%,
and 20.50% for one year, five years, and ten years, respectively.
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Robert Stansky, Portfolio Manager of Fidelity Advisor
Equity Portfolio Growth
Q. BOB, HOW DID THE FUND PERFORM?
A. Fidelity Advisor Equity Portfolio Growth - Institutional Class had a
total return of 2.24% for the six months ended May 31, 1994. That compares
to a -0.01% total return for the average growth fund tracked by Lipper
Analytical Services during the same period. For the 12 months ended May 31,
the fund was up 6.62%, while the average fund rose 4.62%.
Q. OBVIOUSLY, THE PERFORMANCE OF BOTH THE MARKET AND THE FUND HAS SLOWED
LATELY. WHAT'S YOUR TAKE ON THE RECENT CORRECTION?
A. In the last report, I talked about how high stock valuations - prices
compared to other measures such as earnings - had risen. The fund had
averaged more than a 27% total return during each of the three calendar
years prior to December 31, 1993, and the Standard & Poor's 500 had an
average annual return of 15% during the same period; keep in mind the
market's historic average annual return is roughly 10%. Anytime valuations
get that high, investors are just waiting for a reason to sell. That reason
arrived in early February when the Federal Reserve Board raised short-term
interest rates for the first time in five years. The Fed's move was
designed to curb future inflation that might result from the strengthening
economy. But rising interest rates often result in falling stock prices,
which was the general trend from February through May. First, investors
became concerned that higher rates might slow the economic growth that had
begun to boost corporate profits. Second, when rates go up, returns on
safer investments such as CDs and savings accounts begin to look more
attractive relative to stocks.
Q. DID ANY OF THE FUND'S STOCKS MAKE IT THROUGH UNSCATHED?
A. Very few. But thankfully, the fund's largest investment over the past
six months - Compaq Computer - was one of them. Compaq's stock price rose
more than 60% over the past six months. Despite that gain, the stock's
valuation remained very attractive because company earnings were rising
quickly too. Compaq has done a fantastic job of controlling costs, and at
the same time has been right on target providing the products that
consumers want. The growth in Compaq's product sales- or its unit growth -
is very strong, yet I see even more growth potential. That's one reason
I've increased the fund's stake in Compaq from 3.4% six months ago to 4.9%
on May 31. In fact, many of the fund's best performing stocks were in some
way tied to the boom in personal computers.
Q. WHAT ARE SOME OTHER EXAMPLES?
A. IBM is another PC producer that has helped the fund recently. Everyone
knows about the company's long fall from its Wall Street glory days. But
new management has effectively cut costs, and I'm expecting success for
some of IBM's newest products. In addition, Sybase and Oracle are up at
least 19% since the beginning of 1994. These are relational database
management software companies. As more and more PCs are tied together
through local area networks (or LANs), these companies benefit by providing
the database software to support those networks. Also, I've positioned the
fund to take advantage of what I think will be continued growth in the
demand for semiconductors. Texas Instruments boosted the fund's performance
over the past few months, and Intel and Applied Materials also were among
its top 10 investments at the end of the period.
Q. YOU INCREASED THE FUND'S STAKE IN ALL TECHNOLOGY STOCKS FROM 23.8% SIX
MONTHS AGO TO 26.5% ON MAY 31...
A. And the explanation is simple. No other sector comes close to technology
in the strength of its worldwide unit growth. But bear in mind this sector
also has a history of volatility. A good example is Cisco Systems, a
computer network products supplier whose stock recently suffered a sizable
correction. Cisco's earnings grew at an incredibly strong pace over the
past couple of years. But in early 1994, the company announced earnings
figures that were below what analysts had projected. Although Cisco's
earnings were still among the fastest-growing in the market, they appeared
to be slowing. Investors quickly turned negative on both the stock and the
technology sector as a whole, which I didn't anticipate.
Q. ANY OTHER DISAPPOINTMENTS?
A. Sure. The big three auto stocks - Chrysler, Ford and General Motors -
did very well through the winter as the economy heated sales. However, the
rise in interest rates this spring caused investors to worry whether the
auto companies could sustain that strong performance. I reduced the fund's
stake, but in hindsight, not quickly enough.
Q. RETAIL AND WHOLESALE STOCKS - 10.6% OF THE FUND ON MAY 31 - ARE NOW ITS
SECOND LARGEST SECTOR INVESTMENT. WHERE HAVE YOU FOUND OPPORTUNITIES?
A. As always, I use a bottom up approach to building the fund; I look for
attractive stocks rather than attractive sectors. That said, the recent
market correction resulted in lower valuations for some specialty retailers
that I had been watching closely, and I made my move. I bought the stocks
of retailers who operate in market niches where there appears to be room
for growth. Segments that do not have a dominant nationwide player usually
offer specialty retailers the best opportunity to increase business and
gain market share. For example, I've invested in retailers such as Home
Depot and Lowe's, which are fast growers in home improvement, and Office
Depot and Staples, which are gaining market share in office supplies.
Q. THERE'S BEEN A LOT OF TALK LATELY ABOUT DERIVATIVES. DO YOU USE THEM?
A. The fund has the authority to use derivatives, but I haven't made much
use of them. The fund's investments usually remain limited to common
stocks, a few bonds, and some short-term securities.
Q. WHAT'S YOUR OUTLOOK FOR THE NEXT SIX MONTHS?
A. Over the long run, stock prices tend to follow earnings, so I'm trying
to pinpoint the companies that will grow earnings the fastest over the next
few years. There are reasons for optimism about earnings: many companies
have benefited from a stronger economy, many have effectively cut costs,
and many have corporate balance sheets that appear to be in good shape.
However, the spoiler could be higher interest rates. We'll have to wait and
see what effect higher rates will have on corporate earnings. If companies
begin to lessen earnings estimates, we may be in for a bumpy ride over the
next six months.
FUND FACTS
GOAL: to increase the value
of the fund's shares over the
long term by investing in
stocks that have
above-average growth
potential
START DATE: November 22,
1983
SIZE: As of May 31, 1994,
more than $1 billion
MANAGER: Robert Stansky,
since 1992; joined Fidelity in
1983
(checkmark)
ROBERT STANSKY ON THE EFFECT
OF RISING INTEREST RATES ON
STOCKS:
"Historically, rising rates have
been bad news for stocks. I
believe that stock prices
follow earnings, and higher
rates normally have a
negative impact on earnings.
It's a delicate balance within
the economy. The Federal
Reserve has raised rates to
control inflation that might
result from an overheated
economy. But economic
growth and increased
consumer spending are the
catalysts that allow
companies to raise the prices
of their products, which - if
they can control costs - can
result in higher earnings.
We're still not sure whether
the higher rates will dampen
corporate profits. And that will
be the key factor determining
how stocks behave through
the end of 1994."
(bullet) General Electric was the
fund's second largest
investment on May 31. The
stock suffered through the
first quarter of 1994 for
several reasons. However,
the improving economy has
boosted profits in several of
G.E.'s businesses, and
effective management helps
give the company strong
earnings potential over the
next couple of years.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF MAY 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Compaq Computer Corp. 4.9 3.4
General Electric Co. 2.4 0.9
Texas Instruments, Inc. 2.1 0.8
Microsoft Corp. 1.4 0.7
International Business Machines 1.4 0.5
Corp.
Applied Materials, Inc. 1.4 0.2
Intel Corp. 1.4 0.5
Home Depot, Inc. (The) 1.3 0.2
Lowe's Companies, Inc. 1.1 0.9
Warner-Lambert Co. 1.1 0.3
TOP FIVE INDUSTRIES AS OF MAY 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Technology 26.5 23.8
Retail & Wholesale 10.6 9.1
Finance 8.2 9.9
Health 7.1 8.9
Durables 5.5 4.5
ASSET ALLOCATION
AS OF MAY 31, 1994 AS OF NOVEMBER 30, 1993
Row: 1, Col: 1, Value: 18.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 82.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 20.0
Row: 1, Col: 6, Value: 20.0
Stocks 83.0%
Bonds -
Short-term
Investments 17.0%
Stocks 82.0%
Bonds -
Short-term
Investments 18.0%
Row: 1, Col: 1, Value: 17.0
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 3, Value: 83.0
Row: 1, Col: 4, Value: 20.0
Row: 1, Col: 5, Value: 20.0
Row: 1, Col: 6, Value: 20.0
INVESTMENTS MAY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investments
COMMON STOCKS - 81.7%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 0.0%
AEROSPACE & DEFENSE - 0.0%
Aviall, Inc. (a) 11,025 $ 165
Orbital Sciences Corporation 7,400 163
328
DEFENSE ELECTRONICS - 0.0%
Nichols Research Corp. 5,000 55
TOTAL AEROSPACE & DEFENSE 383
BASIC INDUSTRIES - 2.3%
CHEMICALS & PLASTICS - 0.2%
Airgas, Inc. (a) 43,700 1,054
GEON 7,900 235
Lubrizol Corp. 17,700 606
Raychem Corp. 1,800 67
1,962
IRON & STEEL - 0.9%
Armco, Inc. (a) 17,900 105
Birmingham Steel Corp. 67,400 2,106
Compania Siderurgica Nacional (a) 29,733,100 801
Nucor Corp. 108,500 7,283
USX-U.S. Steel Group 300 10
10,305
METALS & MINING - 0.2%
Aluminum Co. of America 22,800 1,610
Olympic Steel, Inc. (a) 66,700 834
2,444
PAPER & FOREST PRODUCTS - 1.0%
Caraustar Industries, Inc. 4,300 70
Champion International Corp. 54,000 1,762
Drypers Corp. (a) 10,900 140
Georgia-Pacific Corp. 52,700 3,399
International Paper Co. 25,400 1,759
Jefferson Smurfit Corp. 10,000 140
Pope & Talbot, Inc. 3,500 83
Smurfit (Jeff) Group PLC (UK) 74,100 357
Stone Container Corp. (a) 7,800 114
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS - CONTINUED
Temple-Inland, Inc. 8,500 $ 424
Weyerhaeuser Co. 58,600 2,439
10,687
TOTAL BASIC INDUSTRIES 25,398
CONGLOMERATES - 0.7%
Allied-Signal, Inc. 97,100 3,411
United Technologies Corp. 73,100 4,852
8,263
CONSTRUCTION & REAL ESTATE - 1.4%
BUILDING MATERIALS - 0.4%
Armstrong World Industries, Inc. 21,900 1,068
Cementos Apasco SA de CV Class A (a) 30,200 249
Cemex SA, Series B 180,900 1,337
Lafarge Corp. 700 15
T.J. International, Inc. 50,000 1,112
Tolmex B2 SA (a) 43,800 503
4,284
CONSTRUCTION - 0.4%
Bufete Industrial SA sponsored ADR
representing 3 ordinary certificate banco (a) 18,800 634
Centex Corp. 24,400 595
Ekran Berhad Ord (a) 81,000 659
Empresas Ica Sociedad Controladora SA de CV sponsored
ADR representing Ord. Participation Certificate 4,800 129
Kaufman & Broad Home Corp. 2,100 34
Lennar Corp. 18,900 350
Pulte Corp. 14,600 345
Redman Industries (a) 8,400 143
Schuler Homes, Inc. (a) 60,000 1,282
Schult Homes Corp. 6,500 87
4,258
ENGINEERING - 0.0%
Glenayre Technologies, Inc. 2,700 116
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
REAL ESTATE - 0.2%
Hon Kwok Land Investment Ltd. Ord. 488,000 $ 188
Hovnanian Enterprises, Inc. Class A (a) 2,000 21
South Sea Development Co. 427,922 39
Sun Hung Kai Properties Ltd. 223,300 1,503
1,751
REAL ESTATE INVESTMENT TRUSTS - 0.4%
Crown American Realty Trust (SBI) 19,400 267
Developers Diversified Realty 8,700 263
Duke Realty Investors, Inc. 55,800 1,500
Equity Residential Property Trust (SBI) 17,900 604
Excel Realty Trust, Inc. 2,800 57
Macerich Company 900 17
Manufactured Home Community 26,200 616
Property Trust of America (SBI) 7,493 148
Simon Properties Group, Inc. (a) 29,600 810
United Dominion Realty Trust, Inc 5,100 75
Vornado Realty Trust 9,200 332
4,689
TOTAL CONSTRUCTION & REAL ESTATE 15,098
DURABLES - 5.2%
AUTOS, TIRES, & ACCESSORIES - 3.2%
Autozone, Inc. (a) 190,200 5,183
BMW (Bayerische Mtr Wks) (a) 3,500 1,743
BMW AG Sub (rights) (a) 3,500 60
Chrysler Corp. 172,700 8,570
Continental Gummi-Werke AG (a) 4,400 728
Dana Corp. 7,900 407
Discount Auto Parts, Inc. 11,300 260
Echlin, Inc. 23,800 646
Federal-Mogul Corp. 28,900 853
Ford Motor Co. 92,900 5,365
General Motors Corp. 120,000 6,450
Lund International Holdings, Inc. (a) 3,600 58
O'Reilly Automotive, Inc. (a) 400 10
Pep Boys-Manny, Moe & Jack 150,500 4,703
Spartan Motors, Inc. 13,000 247
35,283
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
CONSUMER ELECTRONICS - 0.4%
Fossil, Inc. 29,500 $ 605
Harman International Industries, Inc. (a) 13,300 362
Newell Co. 16,700 758
Whirlpool Corp. 59,500 3,191
4,916
HOME FURNISHINGS - 0.2%
Ethan Allen Interiors, Inc. (a) 59,100 1,463
Haverty Furniture Companies, Inc. 21,000 310
Levitz Furniture, Inc. 18,100 199
Rhodes, Inc. (a) 4,400 68
Stanley Furniture (a) 8,200 113
2,153
TEXTILES & APPAREL - 1.4%
Fruit of the Loom, Inc. Class A (a) 63,700 1,871
Jones Apparel Group, Inc. (a) 6,900 198
Mohawk Industries Inc. (a) 122,300 2,752
NIKE, Inc. Class B 88,300 5,210
Nine West Group, Inc. (a) 31,800 870
Reebok International Ltd. 94,400 2,974
Shaw Industries, Inc. 90,300 1,625
St. John Knits (a) 200 5
Wolverine World Wide, Inc. 16,350 309
15,814
TOTAL DURABLES 58,166
ENERGY - 2.2%
ENERGY SERVICES - 0.1%
Rowan Companies, Inc. (a) 7,500 59
Schlumberger Ltd. 13,900 796
855
OIL & GAS - 2.1%
Amoco Corp. 90,400 5,322
Anadarko Petroleum Corp. 26,000 1,398
Anderson Exploration Ltd. (a) 42,700 1,077
Archer Resources Ltd. (a) 22,700 359
Barrett Resources Corp. (a) 39,500 533
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Beau Canada Exp 30,300 $ 55
British Petroleum PLC ADR 33,500 2,353
Burlington Resources, Inc. 40,100 1,669
Canadian Natural Resources Ltd. (a) 59,900 959
Elan Energy, Inc. (a) 26,700 208
Encal Energy Ltd. (a) 120,800 319
Enron Oil & Gas Co. 20,800 915
Excel Energy, Inc. (a) 44,700 123
Hugoton Energy Corp. 8,500 104
Intensity Resources Ltd. (a) 35,300 69
Inverness Petroleum Ltd. (a) 18,500 154
Louis Dreyfus Natural Gas Corp. (a) 6,300 116
Murphy Oil Corp. 3,800 160
Noble Affiliates, Inc. 1,500 42
Northrock Resources Ltd. (a) 29,200 222
Oryx Energy Co. 36,400 637
Parker & Parsley Petroleum Co. 2,700 66
Petromet Resources Ltd. Ord. (a) 73,000 482
Pinnacle Resources Ltd. 28,900 423
Renaissance Energy Ltd. (a) 2,100 47
Rio Alto Exploration Ltd. (a) 144,400 1,019
Summit Resources Ltd. 95,300 638
Unocal Corp. 119,400 3,298
YPF Sociedad Anonima sponsored ADR representing
Class D shares 34,300 905
23,672
TOTAL ENERGY 24,527
FINANCE - 8.2%
BANKS - 3.2%
AmSouth Bancorporation 7,050 223
Banacci SA de CV Class C 62,800 470
Bank of Boston Corp. 57,198 1,602
Bank of New York Co., Inc. 146,900 4,334
BanPonce Corp. 10,800 348
Chase Manhattan Corp. 102 4
Chemical Banking Corp. 102,300 3,926
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Citicorp 64,500 $ 2,548
Crestar Financial Corp. 5,543 265
First Chicago Corp. 4,132 218
Fleet Financial Group, Inc. 72 3
Grupo Financiero Bancomer SA de CV
sponsored ADR, Series C (b) 26,500 788
HSBC Holdings PLC 97,099 1,118
Mellon Bank Corp. 524 31
Mercantile Bancorporation, Inc. 9,750 355
NationsBank Corp. 182,096 10,084
Shawmut National Corp. 98,300 2,371
Signet Banking Corp. 150,177 6,270
State Street Boston Corp. 10,900 442
35,400
CREDIT & OTHER FINANCE - 1.9%
American Express Co. 81,500 2,251
American Residential Holdings Corp 17,300 311
Argentaria Corp. Bancaria de Esp 3,800 161
Beneficial Corp. 40,000 1,475
Citic Pacific Ltd. Ord. 72,000 209
Credit Acceptance Corp. (a) 10,800 259
Dean Witter Discover & Co. 140,354 5,474
First Pacific Co. Ltd. 460,000 244
Granite Industries BHD 194,000 346
Green Tree Acceptance, Inc. 82,300 4,845
Grupo Carso SA de CV Class A-1 (a) 218,600 2,178
Household International, Inc. 37,186 1,264
JCG Holdings 262,000 180
Jardine Matheson & Co. Ltd. Ord. 196,158 1,600
Mercury Finance Co. 44,700 760
North American Mortgage Co. 3,200 80
21,637
FEDERAL SPONSORED CREDIT - 1.9%
Federal Home Loan Mortgage Corporation 174,000 10,092
Federal National Mortgage Association 130,600 10,905
20,997
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
INSURANCE - 1.0%
Allstate Corp. 81,200 $ 2,121
American Bankers Insurance Group, Inc. 6,100 135
Capital Guaranty Corp. 40,800 617
Citizens Corp. 900 14
Exel Ltd. 2,200 93
General Re Corp. 50,000 5,987
Paul Revere Corp. 9,200 216
TIG Holdings, Inc. 4,800 98
Travelers, Inc. (The) 69,400 2,273
11,554
SAVINGS & LOANS - 0.0%
Standard Federal Bank 400 11
SECURITIES INDUSTRY - 0.2%
BHC Financial, Inc. 5,625 87
Colonial Group, Inc. Class A 10,000 240
Lehman Brothers Holdings 16,300 299
Paine Webber Group, Inc. 103,900 1,714
2,340
TOTAL FINANCE 91,939
HEALTH - 7.1%
DRUGS & PHARMACEUTICALS - 4.6%
ALZA Corp. Class A 96,300 2,395
Amgen, Inc. (a) 94,500 4,400
Bristol-Myers Squibb Co. 26,400 1,442
COR Therapeutics, Inc. (a) 30,500 286
Cell Genesys, Inc. (a) 18,900 222
Cellcor, Inc. 3,000 7
Cellpro, Inc. (a) 19,200 413
Cephalon, Inc. (a) 10,800 130
Cortech, Inc. 1,500 15
Creative Biomolecules, Inc. (a) 26,500 86
Cytotheraputics, Inc. 17,800 156
Dura Pharmaceuticals, Inc. 16,900 167
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS - CONTINUED
Elan PLC:
therapeutic systems unit
(Common & 1 ADR warrant) (a) 7,093 $ 195
ADR (a) 215,550 7,625
Forest Laboratories, Inc. (a) 4,200 185
Genetics Institute, Inc. depositary share (a) 20,700 906
Immulogic Pharmaceutical Corp. (a) 3,600 26
Interferon Sciences, Inc. 1,100 4
Liposome Co, Inc. (a) 29,000 194
Magainin Pharmaceuticals, Inc. (a) 12,300 49
Marsam Pharmaceuticals, Inc. (a) 28,800 295
Molecular Biosystems, Inc. (a) 6,000 76
Perspective Biosystems, Inc. (a) 4,000 75
Pfizer, Inc. 186,600 11,896
Protein Design Labs, Inc. (a) 1,800 33
Schering-Plough Corp. 130,600 8,522
SciGenics, Inc. (Callable) 2,900 31
Somatix Therapy Corp. (a) 10,800 63
Therapeutic Discovery Corp. Unit (1 Class A + 1
Alza Corp. warrant) 3,280 18
US Bioscience, Inc. (a) 304 2
Univax Biologics, Inc. (a) 100 1
Warner-Lambert Co. 174,100 12,252
52,167
MEDICAL EQUIPMENT & SUPPLIES - 1.6%
Boston Scientific Corp. (a) 119,500 1,763
Cardinal Health, Inc. 14,000 669
Dianon Systems, Inc. 3,700 19
Johnson & Johnson 221,700 9,810
Mallinckrodt Group, Inc. 101,400 3,017
McKesson Corp. 6,876 570
Medtronic, Inc. 27,500 2,262
PSICOR, Inc. (a) 300 3
Resound Corp. (a) 1,800 16
18,129
MEDICAL FACILITIES MANAGEMENT - 0.9%
American Healthcorp, Inc. (a) 2,100 17
Columbia/HCA Healthcare Corp. 55,070 2,189
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT - CONTINUED
GranCare, Inc. (a) 900 $ 17
HealthTrust, Inc. - The Hospital Co. (a) 13,600 396
Horizon Healthcare Corp. (a) 19,300 480
Integrated Health Services, Inc. (a) 4,700 137
Lincare Holdings, Inc. (a) 4,000 92
Manor Care, Inc. 13,150 340
Ornda Healthcorp (a) 7,096 114
PHP Healthcare Corp. (a) 24,700 281
Quantum Health Resources, Inc. (a) 10,100 326
Quorum Health Group, Inc. (a) 9,200 156
U.S. Healthcare, Inc. 97,200 3,912
United HealthCare Corp. 27,000 1,299
9,756
TOTAL HEALTH 80,052
INDUSTRIAL MACHINERY & EQUIPMENT - 3.7%
ELECTRICAL EQUIPMENT - 3.3%
American Power Conversion Corp. (a) 68,400 1,402
Duracell International, Inc. 55,500 2,338
General Electric Co. 553,100 27,447
Gilat Satellite Networks (a) 800 8
Hutchison Whampoa Ltd. Ord. 455,000 2,002
Scientific-Atlanta, Inc. 72,100 2,695
Star Paging International Holdings Ltd. 2,240,000 928
36,820
INDUSTRIAL MACHINERY & EQUIPMENT - 0.4%
Caterpillar, Inc. 26,700 2,854
Flow International Corp. (a) 37,200 218
Perspective Technologies II (a) 80,000 1,720
4,792
POLLUTION CONTROL - 0.0%
Weston (Roy F.), Inc. Class A (a) 700 6
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 41,618
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - 3.9%
BROADCASTING - 1.0%
American Telecasting, Inc. (a) 15,600 $ 300
BET Holdings, Inc. Class A (a) 2,400 38
Broadcasting Partners, Inc Class A (a) 1,900 21
CAI Wireless Systems, Inc. 2,800 32
Clear Channel Communications, Inc. (a) 41,000 1,502
Comcast Corp. Class A Special 88,200 1,538
Emmis Broadcasting Corp. Class A 5,700 76
Evergreen Media Corp. Class A (a) 1,700 25
Gaylord Entertainment Co. Class A 71,800 1,651
Grupo Televisa GDS (a)(b) 17,400 1,005
Infinity Broadcasting Corp. (a) 87,500 2,056
Jacor Communications, Inc. Class A (a) 15,100 204
Peoples Choice TV Corp. (a) 1,500 39
Scandinavian Broadcasting Corp. (a) 15,600 394
Television Broadcast Limited Ord (a) 309,000 1,250
Time Warner, Inc. 20,914 810
Viacom, Inc. (a) 17,700 538
11,479
ENTERTAINMENT - 0.4%
Carnival Cruise Lines, Inc. Class A 36,900 1,725
Casino America, Inc. (a) 3,300 63
Discovery Zone, Inc. (a) 6,700 99
Disney (Walt) Co. 48,100 2,080
Players International, Inc. 24,000 486
4,453
LEISURE DURABLES & TOYS - 0.3%
Callaway Golf Co. 34,800 1,492
Champion Enterprises, Inc. (a) 13,800 442
Coachmen Industries, Inc. 1,200 16
Coastcast Corp. (a) 900 26
Cobra Golf, Inc. 42,300 1,322
Fleetwood Enterprises, Inc. 19,000 399
3,697
LODGING & GAMING - 0.3%
Argosy Gaming Corp. (a) 4,700 73
Caesars World, Inc. (a) 12,400 485
Circus Circus Enterprises, Inc. (a) 16,200 375
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
International Game Technology Corp. 20,700 $ 458
Mirage Resorts, Inc. (a) 106,100 2,082
3,473
PUBLISHING - 0.5%
American Greetings Corp. Class A 34,100 959
Belo (A.H.) Corp. Class A 8,900 444
Dow Jones & Co Inc. 19,100 695
Gannett Co., Inc. 19,000 1,005
Knight-Ridder, Inc. 14,600 823
Ming Pao Enterprise Corp. Ltd. 367,000 299
New York Times Co. (The) Class A 1,200 31
Tribune Co. 8,100 476
Washington Post Co. Class B 1,400 325
5,057
RESTAURANTS - 1.4%
Apple South, Inc. 58,900 1,281
Applebee's International, Inc. 7,800 111
Brinker International, Inc. (a) 17,850 448
Landrys Seafood Restaurants, Inc. 33,700 750
Lone Star Steakhouse Saloon (a) 29,100 567
McDonald's Corp. 189,500 11,749
Outback Steakhouse, Inc. (a) 14,800 389
Quality Dining, Inc. 8,600 97
Quantum Restaurant Group, Inc. (a) 8,300 81
Sbarro, Inc. 13,100 478
15,951
TOTAL MEDIA & LEISURE 44,110
NONDURABLES - 2.0%
BEVERAGES - 0.8%
COTT Corp. 34,600 707
Coca-Cola Company (The) 156,400 6,315
Coca-Cola Femsa SA de CV sponsored ADR (a) 3,900 121
Dr. Pepper/Seven-Up Companies, Inc. (a) 5,300 130
Emvasa Del Valle de Enah Ord (a) 30,600 122
PepsiCo, Inc. 33,400 1,202
8,597
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
FOODS - 0.0%
Brothers Gourmet Coffees, Inc. (a) 800 $ 10
Dreyer's Grand Ice Cream, Inc. 14,300 325
Herdez SA de CV Class B (a) 104,400 130
International Multifoods Corp. 2,000 32
497
HOUSEHOLD PRODUCTS - 0.6%
BeautiControl Cosmetics, Inc. 10,000 135
First Brands Corp. 36,200 1,285
Gillette Company 72,400 5,050
Safeskin Corp. (a) 4,700 71
Safety First, Inc. (a) 20,000 525
Stanhome, Inc. 200 7
7,073
TOBACCO - 0.6%
Philip Morris Companies, Inc. 127,300 6,270
RJR Nabisco Holdings Corp. (a) 31,400 180
6,450
TOTAL NONDURABLES 22,617
PRECIOUS METALS - 0.0%
MK Gold Co. (a) 59,200 326
RETAIL & WHOLESALE - 10.6%
APPAREL STORES - 1.9%
AnnTaylor Stores Corp. (a) 29,700 995
Catherines Stores Corp. (a) 7,200 72
Cato Corp. Class A 93,050 1,163
Charming Shoppes, Inc. 153,300 1,456
Claire's Stores, Inc. 49,300 567
Designs, Inc. (a) 60,550 863
Filene's Basement Corp. (a) 68,500 556
Gap, Inc. 138,900 6,025
Genesco, Inc. (a) 900 3
Giordano Holdings Ltd. Ord. 82,000 41
Gymboree Corp. (a) 15,900 725
Limited, Inc. (The) 175,600 3,095
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
APPAREL STORES - CONTINUED
One Price Clothing Stores, Inc. (a) 4,050 $ 78
Ross Stores, Inc. (a) 19,500 261
Sportmart, Inc. (a) 6,200 88
TJX Companies, Inc. 156,200 3,788
Talbots, Inc. 17,800 523
United States Shoe Corp. 35,000 652
Urban Outfitters, Inc. (a) 400 10
20,961
DRUG STORES - 0.0%
Revco (D.S.), Inc. (a) 17,200 294
GENERAL MERCHANDISE STORES - 2.8%
Consolidated Stores Corp. (a) 59,600 857
Dayton Hudson Corp. 94,100 7,399
Federated Department Stores, Inc. (a) 42,700 934
Lechters, Inc. (a) 3,200 39
May Department Stores Co. (The) 49,500 1,918
Penney (J.C.) Co., Inc. 79,600 4,070
Proffitts, Inc. (a) 15,200 296
Sears, Roebuck & Co. 240,200 12,160
Wal-Mart Stores, Inc. 147,100 3,457
31,130
GROCERY STORES - 0.4%
Dairy Farm International Holdings Ltd. Ord. 135,000 197
Giant Food, Inc. Class A 17,100 368
Kroger Co. (The) (a) 18,100 432
Safeway, Inc. (a) 41,400 952
Starbucks Corp. (a) 90,800 2,588
Stop & Shop Companies, Inc. (a) 7,900 190
4,727
RETAIL & WHOLESALE, MISC - 5.5%
Amway Asia Pacific Ltd. (a) 1,100 38
Bed Bath & Beyond, Inc. (a) 96,200 2,718
Best Buy Co., Inc. (a) 68,400 1,975
Body Shop International PLC (a) 14,600 52
Circuit City Stores, Inc. 49,400 957
Eagle Hardware & Garden, Inc. (a) 28,300 361
Good Guys, Inc. (a) 5,800 70
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISC - CONTINUED
Home Depot, Inc. (The) 313,500 $ 14,147
Lillian Vernon Corp. 6,400 122
Little Switzerland, Inc. (a) 29,000 188
Lowe's Companies, Inc. 394,700 12,384
Micro Warehouse, Inc. (a) 15,400 389
National Record Mart, Inc. 13,000 58
Office Depot, Inc. (a) 326,100 12,188
Payless Cashways, Inc. (a) 67,800 1,008
Rex Stores Corp. (a) 33,400 526
Spiegel, Inc. Class A 21,700 461
Staples, Inc. 222,000 6,438
Sunglass Hut International, Inc. (a) 40,400 1,182
Tandy Corp. 52,100 1,947
Toys "R" Us, Inc. (a) 94,600 3,358
Viking Office Products, Inc. (a) 3,100 155
Waban, Inc. (a) 56,000 1,050
61,772
TOTAL RETAIL & WHOLESALE 118,884
SERVICES - 0.7%
ADVERTISING - 0.0%
ADVO-Systems, Inc. 700 12
EDUCATIONAL SERVICES - 0.0%
Informatics Holdings Ltd. 184,000 239
LEASING & RENTAL - 0.4%
Blockbuster Entertainment Corp. 101,800 2,876
Hollywood Entertainment Corp. (a) 36,800 1,003
Ryder Systems, Inc. 29,300 707
4,586
PRINTING - 0.2%
Cyrk, Inc. (a) 63,100 1,609
Reynolds & Reynolds Co. Class A 12,400 282
1,891
SERVICES - 0.1%
Health Care Services Group, Inc. (a) 12,600 158
Interim Services, Inc. 1,900 49
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
SERVICES - CONTINUED
SERVICES - CONTINUED
Kelly Services, Inc. Class A 21,900 $ 591
Oroamerica, Inc. (a) 9,800 127
Robert Half International, Inc. (a) 1,500 51
TRO Learning, Inc. 700 5
981
TOTAL SERVICES 7,709
TECHNOLOGY - 26.5%
COMMUNICATIONS EQUIPMENT - 4.0%
ADC Telecommunications, Inc. (a) 4,900 198
Active Voice Corp. 3,000 63
Cabletron Systems, Inc. (a) 84,200 8,336
Centigram Communications Corp. (a) 72,100 1,694
Cisco Systems, Inc. (a) 122,700 3,037
DSC Communications Corp. (a) 342,200 7,614
Data Race, Inc. (a) 400 3
Digital Link Corp. 1,200 19
Digital Systems International, Inc 400 2
General Instrument Corp. (a) 31,800 1,952
Global Village Communication 1,300 10
Level One Communications, Inc. (a) 49,400 914
Newbridge Networks Corp. (a) 161,600 7,454
Octel Communications Corp. (a) 18,120 362
S Megga International 3,032,000 824
Telco Systems, Inc. (a) 28,800 425
Teledata Communications Ltd. (a) 700 9
Tellabs, Inc. (a) 50,200 1,776
Union Switch and Signal, Inc. (a) 28,900 520
Wellfleet Communications, Inc. (a) 153,600 4,109
3Com Corp. (a) 123,400 5,800
45,121
COMPUTER SERVICES & SOFTWARE - 5.6%
Adobe Systems, Inc. 6,000 172
Alantec Corp. 900 13
Atria Software, Inc. 3,800 61
Brock Control Systems, Inc. (a) 41,400 869
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
CUC International, Inc. (a) 108,100 $ 3,162
Cadence Design Systems, Inc. (a) 128,800 1,915
Ceridian Corp. (a) 18,000 441
Chipcom Corp. (a) 48,000 1,920
Compuware Corp. (a) 78,400 3,322
Davidson & Associates, Inc. (a) 300 6
Electronics for Imaging Incorporated (a) 8,100 139
Equifax Inc. 40,500 1,129
FTP Software, Inc. (a) 21,600 378
IMRS, Inc. (a) 2,700 70
Intelligent Electronics, Inc. 73,700 1,585
LEGENT Corp. (a) 126,300 3,884
Landmark Graphics Corp. (a) 3,600 120
Lotus Development Corp. (a) 63,800 3,828
Macromedia, Inc. (a) 800 10
Mapinfo Corp. 300 7
MicroAge, Inc. (a) 5,550 141
Microsoft Corp. (a) 296,200 15,921
Netmanage, Inc. (a) 1,000 16
Novell, Inc. (a) 34,300 609
Oracle Systems Corp. (a) 297,800 10,200
Parametric Technology Corp. (a) 193,100 5,721
Powersoft Corp. (a) 5,800 318
Recognition Equipment, Inc. (a) 26,900 245
Sterling Software, Inc. (a) 10,000 311
Structural Dynamics Research Corp. (a) 50,800 502
Sybase, Inc. (a) 68,100 3,677
Synopsys, Inc. (a) 40,000 1,515
Viewlogic Systems, Inc. (a) 4,400 97
Wall Data, Inc. (a) 25,000 916
63,220
COMPUTERS & OFFICE EQUIPMENT - 8.5%
ADAPTEC, Inc. (a) 49,100 865
Compaq Computer Corp. (a) 460,600 54,466
Danka Business Systems PLC Sponsored ADR 8,000 339
EMC Corp. (a) 393,400 6,639
Fore Systems, Inc. 1,200 31
Hutchinson Technology, Inc. (a) 121,900 4,145
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
International Business Machines Corp. 248,800 $ 15,737
MICROS Systems, Inc. (a) 7,500 203
Netframe Systems, Inc. (a) 14,900 149
Seagate Technology (a) 244,600 5,702
Silicon Graphics, Inc. (a) 144,900 3,278
Sun Microsystems, Inc. (a) 70,900 1,480
Sunward Technologies, Inc. (a) 27,400 291
Supermac Technology, Inc. (a) 4,700 33
Tech Data Corp. (a) 81,600 1,285
Western Digital Corp. (a) 85,700 1,200
95,843
ELECTRONIC INSTRUMENTS - 1.8%
Applied Materials, Inc. (a) 356,300 15,544
Credence Systems Corp. (a) 37,800 718
Megatest Corp. (a) 33,700 602
Novellus System, Inc. (a) 84,600 2,792
19,656
ELECTRONICS - 6.6%
Advanced Micro Devices, Inc. (a) 171,700 4,636
Cidco, Inc. (a) 78,500 1,492
Cirrus Logic, Inc. (a) 45,900 1,563
Cypress Semiconductor Corp. 50,000 831
Intel Corp. 246,700 15,419
Linear Technology Corp. 91,700 4,127
Maxim Integrated Products, Inc. (a) 77,600 4,074
Micron Technology, Inc. 209,700 7,051
Motorola, Inc. 183,600 8,583
National Semiconductor Corp. (a) 28,400 550
Sanmina Corp. (a) 40,500 749
Texas Instruments, Inc. 299,600 24,043
Tokyo Electron Ltd. 36,000 1,109
74,227
TOTAL TECHNOLOGY 298,067
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - 2.3%
AIR TRANSPORTATION - 1.1%
AMR Corp. (a) 101,200 $ 5,591
Atlantic Southeast Airlines, Inc. 99,200 2,697
Comair Holdings, Inc. 25,300 474
Delta Air Lines, Inc. 35,900 1,638
East Asiatic Co. Hong Kong Ltd. 227,000 48
Mesa Airlines, Inc. (a) 37,500 450
Technology Resources (a) 309,000 1,258
12,156
RAILROADS - 0.8%
CSX Corp. 94,100 7,199
Chicago & North Western Holdings Corp. (a) 41,100 976
Illinois Central Corp., Series A 6,900 240
8,415
SHIPPING - 0.0%
Nu-Kote Holdings, Inc. Class A (a) 10,400 187
Overseas Shipholding Group, Inc. 200 4
Shun Tak Holdings Ltd. 166,000 185
Transportacion Maritima Mexicana SA de CV
sponsored ADR Class A 14,000 108
484
TRUCKING & FREIGHT - 0.4%
Airborne Freight Corp. 1,000 38
Arkansas Best Corp. 5,000 54
Celadon Group, Inc. (a) 2,300 32
Federal Express Corp. (a) 52,400 4,009
Landstar System, Inc. 8,800 232
4,365
TOTAL TRANSPORTATION 25,420
UTILITIES - 4.9%
CELLULAR - 1.2%
Airtouch Communications 304,935 7,433
Arch Communications Group, Inc. 68,700 996
Century Telephone Enterprises, Inc. 3,000 78
IDB Communications Group, Inc. 124,740 1,809
Metrocall, Inc. (a) 11,000 159
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
CELLULAR - CONTINUED
Nationwide Cellular Service, Inc. (a) 2,300 $ 30
Paging Network, Inc. (a) 18,750 455
Rogers Cantel Mobile Communications, Inc. Class B
(non-vtg) (a) 31,700 803
United States Cellular Corp. (A) 41,300 1,141
12,904
ELECTRIC UTILITY - 0.1%
Consolidated Electric Power Asia Ltd. sponsored ADR (b) 16,000 260
Hong Kong Electric Holdings Ord. 314,000 984
1,244
TELEPHONE SERVICES - 3.6%
ALC Communications Corp (a) 123,100 3,908
AT & T Corporation 46,500 2,534
Ameritech Corp. 185,100 7,242
BellSouth Corp. 25,100 1,493
LCI International, Inc. (a) 36,100 1,399
MCI Communications Corp. 51,100 1,226
MFS Communications, Inc. (a) 37,300 1,175
NYNEX Corp. 6,600 249
Pacific Telesis Group 6,200 188
Southwestern Bell Corp. 84,900 3,492
Sprint Corporation 112,500 4,275
Telebras PN (Pfd. Reg.) 44,000,000 1,690
Telecom Argentina Stet France 39,500 255
Telefonica Argentina Class B 48,600 351
Telefonos de Mexico SA sponsored ADR
representing share Ord. Class L 123,300 7,660
Telephone & Data Systems, Inc. 69,500 2,849
39,986
TOTAL UTILITIES 54,134
TOTAL COMMON STOCKS
(Cost $890,917) 916,711
PREFERRED STOCKS - 0.3%
SHARES VALUE (NOTE 1)
(000S)
DURABLES - 0.3%
AUTOS, TIRES, & ACCESSORIES - 0.3%
Fiat Spa ADR 805,800 $ 2,098
Porsche AG:
(non-vtg.) 2,700 1,254
NV (rfd.) 675 305
TOTAL PREFERRED STOCKS
(Cost $3,148) 3,657
REPURCHASE AGREEMENTS - 18.0%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 4.26%
dated 5/31/94 due 6/1/94 $ 201,432 201,408
TOTAL INVESTMENT IN SECURITIES - 100.0%
(Cost $1,095,473) $ 1,121,776
LEGEND
9. Non-income producing
10. 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 $2,053,000 or .2% of net
assets.
INCOME TAX INFORMATION
At May 31, 1994, the aggregate cost of investment securities for income tax
purposes was $1,096,495,000. Net unrealized appreciation aggregated
$25,281,000, of which $68,275,000 related to appreciated investment
securities and $42,994,000 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) MAY 31, 1994 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 1,121,776
agreements of $201,408) (cost $1,095,473) (Notes 1
and 2) - See accompanying schedule
Cash 1
Receivable for investments sold 7,741
Receivable for fund shares sold 13,212
Dividends receivable 1,123
Other receivables 49
TOTAL ASSETS 1,143,902
LIABILITIES
Payable for investments purchased $ 80,895
Payable for fund shares redeemed 480
Accrued management fee 554
Distribution fees payable 360
Other payables and accrued expenses 520
TOTAL LIABILITIES 82,809
NET ASSETS $ 1,061,093
Net Assets consist of (Note 1):
Paid in capital $ 1,062,469
Distributions in excess of net investment income (471)
Accumulated undistributed net realized gain (loss) on (27,207)
investments
Net unrealized appreciation (depreciation) on investment 26,302
securities
NET ASSETS $ 1,061,093
CALCULATION OF MAXIMUM OFFERING PRICE $28.58
CLASS A:
NET ASSET VALUE, and redemption price per share
($697,960 (divided by) 24,418 shares)
Maximum offering price per share (100/95.25 of $28.58) $30.01
INSTITUTIONAL CLASS: $28.84
NET ASSET VALUE, offering price and redemption price per
share ($363,133 (divided by) 12,591 shares)
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED MAY 31, 1994 (UNAUDITED)
INVESTMENT INCOME $ 3,968
Dividends
Interest (Note 5) 3,033
TOTAL INCOME 7,001
EXPENSES
Management fee (Note 4) $ 2,880
Transfer agent fees (Note 4) 890
Class A
Institutional Class 250
Distribution fees - Class A (Note 4) 1,781
Accounting fees and expenses (Note 4) 209
Non-interested trustees' compensation 3
Custodian fees and expenses 112
Registration fees - Class A 149
Registration fees - Institutional Class 90
Audit 26
Legal 12
Interest (Note 6) 1
Miscellaneous 7
Total expenses before reductions 6,410
Expense reductions (Note 7) (64) 6,346
NET INVESTMENT INCOME 655
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS 10,741
(NOTES 1 AND 3)
Net realized gain (loss) on investment securities
Change in net unrealized appreciation (depreciation) on (3,684)
investment securities
NET GAIN (LOSS) 7,057
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 7,712
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED MAY 31, NOVEMBER 30,
1994 1993
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 655 $ 1,059
Net investment income
Net realized gain (loss) on investments 10,741 37,971
Change in net unrealized appreciation (depreciation) (3,684) 9,617
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 7,712 48,647
FROM OPERATIONS
Distributions to shareholders from:
Net investment income
Class A - (92)
Institutional Class (1,108) (658)
Net realized gain
Class A (19,907) (625)
Institutional Class (14,674) (3,309)
Share transactions - net increase (decrease) (Note 8) 414,620 428,507
TOTAL INCREASE (DECREASE) IN NET ASSETS 386,643 472,470
NET ASSETS
Beginning of period 674,450 201,980
End of period (including under (over) distribution of net $ 1,061,093 $ 674,450
investment income of $(471) and $1,329,
respectively)
</TABLE>
FINANCIAL HIGHLIGHTS CLASS A
<TABLE>
<CAPTION>
<S> <C> <C> <C>
SIX MONTHS YEAR ENDED PERIOD ENDED**
ENDED MAY 31, NOVEMBER 30, NOVEMBER 30,
1994
(UNAUDITED) 1993 1992
SELECTED PER-SHARE DATA
Net asset value, beginning of period $ 29.50 $ 26.33 $ 23.78
Income from Investment Operations
Net investment income (.01) (.07)(double dagger) .01(double dagger)
Net realized and unrealized gain (loss) .54 3.82 2.54
on investments
Total from investment operations .53 3.75 2.55
Less Distributions
From net investment income - (.08) -
From net realized gain (1.45) (.50) -
Total distributions (1.45) (.58) -
Net asset value, end of period $ 28.58 $ 29.50 $ 26.33
TOTAL RETURN(dagger) (dagger)(dagger) 1.80% 14.52% 10.72%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period (000 omitted) $ 697,960 $ 377,984 $ 22,655
Ratio of expenses to average net 1.82%* 1.84% 1.47%*
assets***
Ratio of expenses to average net assets 1.84%* 1.85% 1.47%*
before expense reductions***
Ratio of net investment income to .16%* (.24)% .25%*
average net assets
Portfolio turnover 129%* 160% 240%
</TABLE>
* ANNUALIZED
** FOR THE PERIOD SEPTEMBER 10, 1992 (COMMENCEMENT OF SALES OF CLASS A
SHARES) TO NOVEMBER 30, 1992.
*** SEE NOTE 7 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.
FINANCIAL HIGHLIGHTS INSTITUTIONAL CLASS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
SIX MONTHS YEAR ENDED NOVEMBER 30,
ENDED MAY 31,
1994
(UNAUDITED) 1993 1992 1991 1990 1989
SELECTED PER-SHARE
DATA
Net asset value, $ 29.74 $ 26.37 $ 24.28 $ 15.55 $ 17.32 $ 12.02
beginning of period
Income from Investment
Operations
Net investment .10 .19(double dagger) .17 .04 .01 .06
income
Net realized and .56 3.78 4.55 8.69 .34 5.50
unrealized gain
(loss) on
investments
Total from investment .66 3.97 4.72 8.73 .35 5.56
operations
Less Distributions
From net investment (.11) (.10) (.03) - (.08) (.26)
income
From net realized gain (1.45) (.50) (2.60) - (2.04) -
Total distributions (1.56) (.60) (2.63) - (2.12) (.26)
Net asset value, end of $ 28.84 $ 29.74 $ 26.37 $ 24.28 $ 15.55 $ 17.32
period
TOTAL RETURN (dagger) 2.24% 15.36% 21.14% 56.14% 2.75% 47.18%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of $ 363,133 $ 296,466 $ 179,325 $ 68,766 $ 27,473 $ 24,523
period (000 omitted)
Ratio of expenses to .86%* .94% .98% 1.13% 1.74% 1.60%
average net assets**
Ratio of expenses to .87%* .95% .98% 1.13% 1.74% 1.60%
average net assets
before expense
reductions**
Ratio of net investment .13%* .66% .73% .25% .07% .38%
income to average net
assets
Portfolio turnover 129%* 160% 240% 254% 262% 269%
</TABLE>
* ANNUALIZED
** SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS.
(dagger) THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN 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 May 31, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Advisor Equity Portfolio Growth(the fund) is a fund of Fidelity
Advisor Series I (the trust) and is authorized to issue an unlimited number
of shares. The trust is registered under the Investment Company Act of
1940, as amended (the 1940 Act), as an open-end management investment
company organized as a Massachusetts business trust.
The fund offers two classes of shares each of which has 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 (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
are valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and 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 practicable 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."
SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Dividend and
interest income is recorded net of foreign taxes where recovery of such
taxes is uncertain.
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.
Income and capital gain distributions are determined in accordance with
income tax regulations which may differ from generally accepted accounting
principles. These differences are primarily due to differing treatments for
non-taxable dividends and losses deferred due to wash sales.
Permanent book and tax basis differences relating to shareholder
distributions will result in reclassifications to paid in capital.
Undistributed net investment income may include temporary book and tax
basis differences which will reverse in a subsequent period. Any taxable
income or gain remaining at fiscal year end is distributed in the following
year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of trade
date. Gains and losses on securities sold are determined on the basis of
identified cost.
CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective December
1, 1993, the fund adopted Statement of Position 93-2: Determination,
Disclosure, and Financial Statement Presentation of Income, Capital Gain,
and Return of Capital Distributions by Investment Companies. As a result,
the fund changed the classification of distributions to shareholders to
better disclose the differences between financial statement amounts and
distributions determined in accordance with income tax regulations.
Accordingly, amounts as of November 30, 1993 have been reclassified to
reflect an increase in paid in capital of $49,562,000, a decrease in
undistributed net investment income of $1,347,000 and a decrease in
accumulated net realized gain on investments of $48,215,000.
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
2. OPERATING POLICIES -
CONTINUED
FORWARD FOREIGN CURRENCY
CONTRACTS - CONTINUED
due to changes in the value of the foreign currency or if the counterparty
does not perform under the contract.
Purchases and sales of forward foreign currency contracts having the same
settlement date and broker are offset and presented net on the Statement of
Assets and Liabilities. Gain (loss) on the purchase or sale of forward
foreign currency contracts having the same settlement date and broker is
recognized on the date of offset, otherwise gain (loss) is recognized on
settlement date.
REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery
of the underlying securities, whose market value is required to be at least
102% of the resale price at the time of purchase. The fund's investment
adviser, Fidelity Management & Research Company (FMR), is responsible
for determining that the value of these underlying securities remains at
least equal to the resale price.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission , 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 $786,359,000 and $457,674,000, 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 annualized rate of
.65% 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, Class
A 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, Class A paid FDC $1,781,000
FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
DISTRIBUTION AND SERVICE PLAN -
CONTINUED
of which $11,135,000 was paid to securities dealers, banks and other
financial institutions for selling shares of Class A 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 $75,000 for the
period.
SALES LOAD. FDC received sales charges for selling shares of Class A. 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 $5,448,000 of which
$4,754,000 was paid to securities dealers, banks and other financial
institutions.
TRANSFER AGENT FEE. Fidelity Investments Institutional Operations Company
(FIIOC), an affiliate of FMR, and State Street Bank and Trust Company are
the transfer, dividend disbursing and shareholder servicing agents for the
Institutional Class and Class A, 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 $264,000 for the period.
5. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a lender. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $29,973,000 and $23,383,000,
respectively. The weighted average interest rate was 3.65%. Interest earned
from the interfund lending program amounted to $14,000 and is included in
interest income on the Statement of Operations.
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or emergency
purposes to fund shareholder redemptions. The fund has established
borrowing arrangements with certain banks. Under the most restrictive
arrangement, the fund must pledge to the bank securities having a market
value in excess of 220% of the total bank borrowings. The interest rate on
the borrowings is the bank's base rate, as revised from time to time. The
maximum loan and the average daily loan balances during the periods for
which loans were outstanding amounted to $6,739,000 and $6,739,000,
respectively. The weighted average interest rate was 3.88%.
7. EXPENSE REDUCTIONS.
FMR has directed certain portfolio trades to brokers who paid a portion of
the fund's expenses. For the period, the fund's expenses were reduced by
$64,000 under this arrangement.
8. SHARE TRANSACTIONS.
Share transactions for both classes were as follows:
SHARES DOLLARS
SIX MONTHS YEAR SIX MONTHS YEAR
ENDED ENDED ENDED ENDED
MAY 31, NOVEMBER 30, MAY 31, NOVEMBER 30,
AMOUNTS IN THOUSANDS 1994 1993 1994 1993
CLASS A
Shares sold 14,506 14,584 $ 421,994 $ 412,420
Reinvestment of distributions 591 22 16,940 564
Shares redeemed (3,491) (2,654) (101,428) (75,501)
Net increase (decrease) 11,606 11,952 $ 337,506 $ 337,483
INSTITUTIONAL CLASS
Shares sold 4,908 7,349 $ 145,034 $ 209,624
Reinvestment of distributions 294 78 8,468 2,044
Shares redeemed (2,579) (4,258) (76,388) (120,644)
Net increase (decrease) 2,623 3,169 $ 77,114 $ 91,024
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
Chase Manhattan Bank, N.A.
New York, NY
EQUITY FUNDS
Fidelity Advisor Overseas Fund
Fidelity Advisor Equity Portfolio Growth
Fidelity Advisor Growth Opportunities Fund
Fidelity Advisor Global Resources Fund
Fidelity Advisor Strategic Opportunities Fund
GROWTH AND INCOME FUNDS
Fidelity Advisor Equity Portfolio Income
Fidelity Advisor Income & Growth Fund
FIXED-INCOME FUNDS
Fidelity Advisor Emerging Markets Income Fund
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
Fidelity Advisor Short-Intermediate Tax-Exempt Fund
MONEY MARKET FUNDS
Daily Money Fund: Money Market Portfolio
Daily Money Fund: U.S. Treasury Portfolio
Daily Tax-Exempt Money Fund
(REGISTERED TRADEMARK)
