FIDELITY
(Registered trademark)
LOW-PRICED STOCK
FUND
SEMIANNUAL REPORT
JANUARY 31, 1994
CONTENTS
PRESIDENT'S MESSAGE 3 Ned Johnson on minimizing taxes.
PERFORMANCE 4 How the fund has done over time.
FUND TALK 6 The manager's review of fund
performance, strategy, and outlook.
INVESTMENT CHANGES 9 A summary of major shifts in the
fund's investments over the last six
months.
INVESTMENTS 10 A complete list of the fund's
investments with their market value.
FINANCIAL STATEMENTS 41 Statements of assets and liabilities,
operations, and changes in net
assets, as well as financial
highlights.
NOTES 45 Footnotes to the financial
statements.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR
THE GENERAL
INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED
FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR
ACCOMPANIED BY
AN EFFECTIVE PROSPECTUS. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS
CORPORATION IS A
BANK, AND FUND SHARES ARE NOT BACKED OR GUARANTEED BY ANY BANK OR INSURED
BY THE
FDIC.
PRESIDENT'S MESSAGE
DEAR SHAREHOLDER:
No one wants to pay more taxes than they have to. But a recent survey of
500 U.S. households, conducted by Fidelity and Yankelovich Partners, showed
that few people took steps to reduce their taxes under the new tax laws
that went into effect last year. In fact, many people were not completely
aware of the changes until they filed their 1993 tax returns.
Whether or not you're someone whose tax bill increased as a result of these
changes, it may make sense to consider ways to keep more of what you earn.
First, if your employer offers a 401(k) or 403(b) retirement savings plan,
consider enrolling. These plans are set up so you can make regular
contributions -
before taxes - to a retirement savings plan. They offer a disciplined
savings strategy, the ability to accumulate earnings tax-deferred, and
immediate tax savings. For example, if you earn $40,000 a year and
contribute 7% of your salary to your 401(k) plan, your annual contribution
is $2,800. That reduces your taxable income to $37,200 and, if you're in
the
28% tax bracket, saves you $784 in federal taxes. In addition, you pay no
taxes on any earnings until withdrawal.
It may be a good idea to contact your benefits office as soon as possible
to find out when you can enroll or increase your contribution. Most
employers allow employees to make changes only a few times each year.
Second, consider an IRA. Many people are eligible to make an IRA
contribution (up to $2,000) that is fully tax deductible. That includes
people who are not covered by company pension plans, or those within
certain income brackets. Even if you don't qualify for a fully deductible
contribution, any IRA earnings will grow tax-deferred until withdrawal.
Third, consider tax-free investments like municipal bonds and municipal
bond funds. Often these can provide higher after-tax yields than comparable
taxable investments. For example, if you're in the new 36% federal income
tax bracket and invest $10,000 in a taxable investment yielding 7%, you'll
pay $252 in federal taxes and receive $448 in income. That same $10,000
invested in a tax-free bond fund yielding 5.5% would allow you to keep $550
in income.
These are three investment strategies that could help lower your tax bill
in 1994. If you're interested in learning more, please call us at
1-800-544-8888 or visit a Fidelity Investor Center. We look forward to
talking with you.
Best regards,
Edward C. Johnson 3d, Chairman
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance. You can
look at the total percentage change in value, the average annual percentage
change, or the growth of a hypothetical $10,000 investment. Each
performance figure includes changes in a fund's share price, plus
reinvestment of any dividends (or income) and capital gains (the profits
the fund earns when it sells stocks that have grown in value).
CUMULATIVE TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 6 PAST 1 LIFE OF
MONTHS YEAR FUND
Low-Priced Stock 17.42% 23.30% 135.71%
Low-Priced Stock (incl. 3% sales charge) 13.89% 19.60% 128.64%
Russell 2000 13.49% 18.62% 73.86%
Average Small Company Growth 13.78% 17.48% 86.95%
Fund
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms
over a set period - in this case, six months, one year, or since the fund
started on December 27, 1989. You can compare these figures to the
performance of the Russell 2000 index - a broad measure of small company
stocks. You can also compare them to the average small company growth fund,
which reflects the performance of over 220 small company growth funds
tracked by Lipper Analytical Services. Both benchmarks include reinvested
dividends and capital gains, if any.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED JANUARY 31, 1994 PAST 1 LIFE OF
YEAR FUND
Low-Priced Stock 23.30% 23.25%
Low-Priced Stock (incl. 3% sales charge) 19.60% 22.34%
Russell 2000 18.62% 14.44%
Average Small Company Growth 17.48% 16.12%
Fund
AVERAGE ANNUAL TOTAL RETURNS take the fund's actual (or cumulative) return
and show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
Low-Priced Stock Fund (316) Russell 2000 Index
12/27/89 9700.00 10000.00
12/31/89 9593.30 10183.51
01/31/90 9535.10 9293.82
02/28/90 9719.40 9582.38
03/31/90 9816.40 9955.08
04/30/90 9447.80 9630.04
05/31/90 10194.70 10311.66
06/30/90 10476.00 10332.56
07/31/90 10417.80 9878.09
08/31/90 9379.90 8562.52
09/30/90 8968.27 7804.83
10/31/90 8816.44 7328.36
11/30/90 9292.18 7887.14
12/31/90 9585.72 8200.08
01/31/91 10466.35 8941.65
02/28/91 11397.60 9938.77
03/31/91 12156.76 10638.35
04/30/91 12622.38 10611.58
05/31/91 12814.71 11117.39
06/30/91 12045.42 10469.50
07/31/91 12784.34 10836.89
08/31/91 13138.62 11238.01
09/30/91 13192.70 11326.01
10/31/91 13653.40 11625.57
11/30/91 13098.47 11087.87
12/31/91 14019.93 11975.73
01/31/92 15233.91 12946.08
02/29/92 16211.55 13323.74
03/31/92 15674.39 12872.75
04/30/92 15824.79 12421.76
05/31/92 15932.22 12586.94
06/30/92 15545.47 11991.68
07/31/92 16050.40 12408.75
08/31/92 16007.43 12058.59
09/30/92 16137.72 12336.88
10/31/92 16406.49 12729.02
11/30/92 17515.19 13703.05
12/31/92 18078.99 14180.43
01/31/93 18543.43 14660.38
02/28/93 18384.84 14321.78
03/31/93 18939.90 14786.51
04/30/93 18758.65 14380.63
05/31/93 19155.12 15016.96
06/30/93 19223.09 15110.64
07/31/93 19472.30 15319.27
08/31/93 20163.29 15981.08
09/30/93 20327.12 16432.07
10/31/93 21075.95 16855.01
11/30/93 20713.62 16300.25
12/31/93 21733.07 16857.57
01/31/94 22863.70 17386.11
$10,000 OVER LIFE OF FUND: Let's say you invested $10,000 in Fidelity
Low-Priced Stock Fund on December 27, 1989, when the fund began, and paid a
3% sales charge. As the chart shows, by January 31, 1994, the value of your
investment would have grown to $22,864 - a 128.64% increase on your initial
investment. For comparison, look at how the Russell 2000 did over the same
period. With dividends reinvested, the same $10,000 investment would have
grown to $17,386 - a 73.86% increase.
UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. The stock market,
for example, has a history of
growth in the long run and
volatility in the short run. In
turn, the share price and
return of a fund that invests in
stocks will vary. That means if
you sell your shares during a
market downturn, you might
lose money. But if you can
ride out the market's ups and
downs, you may have a gain.
(checkmark)
FUND TALK: THE MANAGER'S OVERVIEW
An interview with Joel Tillinghast, Portfolio Manager of Fidelity
Low-Priced Stock Fund
Q. JOEL, HOW DID THE FUND DO?
A. Pretty well. For the six months ended January 31, 1994, the fund had a
total return of 17.42%. That beat the 13.78% total return for the average
small company growth fund tracked by Lipper Analytical Services. During the
12 months ended January 31, the fund returned 23.30%, compared to 17.48%
for the average fund in its group.
Q. WHAT BOOSTED PERFORMANCE?
A. Four major themes come to mind. First, I kept more than 20% of the
fund's investments in foreign countries over the past six months, and many
of these stocks did well. Second, both overseas and here in the United
States, cyclical stocks - those that rise and fall in tandem with the
economy - helped the fund. Third, I kept a relatively low percentage of the
fund's investments in consumer non-durables, energy and health care, all of
which were among the market's weakest performing sectors over the last six
months. And finally, the fund's cash dropped to a much more manageable
level, and wasn't the drag on performance it had been early in 1993.
Q. LET'S BEGIN OVERSEAS. WHAT WAS THE STORY THERE?
A. Over the past six months, I found attractive small companies in a
variety of places including Canada, Hong Kong, and South Africa. But I
found many of the best performers in Europe, which is struggling to emerge
from a recession. Falling interest rates, low inflation, and the
devaluation of several currencies combined to fuel a dramatic improvement
in business conditions. European companies that worked hard to cut costs
and restructure when times were toughest were those that did best when the
economic environment improved.
Q. MORE SPECIFICALLY, WHERE WERE THE WINNERS?
A. As rates dropped, the profit margins of European financial institutions
improved. A Swedish bank, Foreningsbanken, and a Norwegian savings and
loan, Norgeskreditt, were among the fund's best performers. Utilities -
especially electric companies - helped the fund. Many European utility
companies have only recently been privatized, and they were poised to take
off, free of government control. They cut the government-related fat, and
many had excellent balance sheets. For example, the price of a share of
Northern Ireland Electricity's stock nearly doubled over the past six
months. A British electric company, Seeboard PLC, also did well. Finally,
European cyclicals helped the fund. Finnish paper companies like Repola and
Enso Gutzeit emerged as some of the lowest-cost producers in the world.
Also, the stocks of Rautaruukki - a Finnish steel company - and Outokumpu -
an international mining company based in Finland - benefited from the early
stages of the European recovery. Many of these companies had, as common
qualities, strong growth potential and low price-to-earnings ratios.
Q. DID YOU FIND THESE CYCLICALS IN THE UNITED STATES, AS WELL?
A. Yes, and they were spread out over a wide variety of sectors. I
increased the fund's investment in basic industries from 3.2% to 7.0% since
last July. Domestic steel companies - especially those that produce scrap
products - saw dramatic price increases, and their stocks surged. Schnitzer
Steel was up 59% from the end of November to the end of January. And Proler
International was up 75% over the last six months. Also, I kept about 7% of
the fund in consumer durables during the period. Many were cyclicals. For
example, companies that make auto parts and truck accessories did well.
Lund International, which makes sun visors for trucks, was up 69% during
the period. In addition, the boom in housing helped furniture makers like
Bush Industries, which manufactures ready-to-assemble pieces. Mobile home
companies like Cavco Industries, Shelter Components and Patrick Industries
also were solid performers. Finally, the improving economy helped many
technology stocks.
Q. TECHNOLOGY, AT 11.4%, AND FINANCE, AT 12.9%, WERE THE FUND'S TWO LARGEST
SECTORS ON JANUARY 31. WHERE DID YOU FIND OPPORTUNITIES?
A. Despite some volatility, technology has remained an attractive group.
The increasing market for personal computers helped a host of companies
including disk drive manufacturers like Seagate and Quantum, and PC
resellers like Inacom. Many technology stocks cooled off in the fall after
investors had bid up prices to levels that were quite high. Selectivity was
the watchword. That said, two other strong performers included Computer
Data, a computer programming company that recently won a big government
contract, and Network General, which produces fault-detection software.
Q. WHAT ABOUT FINANCE?
A. Although the fund's stake in finance stayed about the same, I've changed
the face of this sector over the past six months. The profit margins of
regional banks and savings and loans benefited from falling interest rates
for many months. However, by late summer, rates were leveling out and the
prices of these stocks were high, so I began to sell. In some cases, I
redirected the money into financial stocks in Europe, which may stand to
gain if rates fall there.
Q. WERE THERE DISAPPOINTMENTS?
A. Always. One of the fund's largest investments, National Health Labs, was
a big disappointment. The company was well-positioned as a low-cost
producer of laboratory tests, until an unexpected problem arose. The
government charged the company with misleading physicians about the
inclusion of an iron test in a standard test battery. The company paid a
hefty fine and its stock suffered. Castle Energy, an oil refiner, was
another disappointment. Its parent company is being reorganized in the
German courts, and uncertainty about the future hurt the stock. In
addition, despite having many successful technology investments, I missed a
substantial run-up in telecommunications stocks in '93.
Q. WHAT'S AHEAD FOR THE FUND?
A. Economies are growing in the U.S., parts of Asia and Latin America, and
in Northern Europe, which may bode well for corporate profits in these
areas. Improving economies usually provide a boost to small stocks,
especially in areas like technology, where it's hard to imagine a stronger
economy without increased spending on items like personal computers.
Problem is, in many markets stock prices already reflect this improvement.
Valuations - yardsticks like price-to-earnings and dividend ratios - are
very high here in the U.S., which is cause for concern. Given these
factors, I think the fund would be doing well in the coming year to match
the stock market's long-term annual rate of return - about 10%.
FUND FACTS
GOAL: to increase the value of
the fund's shares over the
long term by investing in
stocks of up-and-coming and
out-of-favor companies whose
prices are generally below
$25 a share
START DATE: December 27, 1989
SIZE: as of January 31,
1994, over $2.1 billion
MANAGER: Joel Tillinghast,
since December 1989;
assistant, Fidelity OTC
Portfolio, 1988-1989; stock
analyst for natural gas,
personal care product,
appliance, and tobacco
industries, 1986-1989
(checkmark)
JOEL TILLINGHAST ON TURNOVER:
"Because the business
prospects of smaller
companies can change more
quickly than their larger
counterparts, many funds that
invest in these companies
tend to turnover their stocks
very quickly. I try to break that
mold for a couple of reasons.
Temperamentally, I'm a
long-term investor. Obviously,
I look at short-term earnings
potential, but I like to buy
stocks for the fund that I feel
can make significant gains
over a three- to five-year
horizon. That means riding
out some rough times with
stocks that
I continue to feel are solid
selections. Also, transaction
costs are higher for small
company stocks. A high
volume of buying and selling
gets expensive for
shareholders. That's why you
haven't seen many changes
to the fund's top investments
over the last six months."
(bullet) Seven of the fund's top ten
investments on January 31
were also in the top 10 six
months earlier.
(bullet) The fund had a 5.8% stake
in health-care stocks on
January 31, down from 6.9%
six months ago. The stocks of
hospital owners Hospital
Corporation of America (up
88% since July 31)and Summit
Health (up 14%) were among
the sector's top performers.
(bullet) The fund's small
investment in South Africa is
almost exclusively in metals
and mining companies like De
Beers Consolidated Mines
Ltd. and Free State
Consolidated Gold Mines Ltd.
INVESTMENT CHANGES
TOP TEN STOCKS AS OF JANUARY 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE STOCKS
6 MONTHS AGO
Welsh Water PLC Ord. 1.7 1.6
HCA - Hospital Corporation of
America Class A 1.3 1.4
Northumbrian Water Group PLC
Ord. 1.3 1.2
Seeboard PLC 1.3 1.0
De Beers Consolidated Mines
Ltd. ADR 1.2 1.2
National Health Laboratories, Inc. 1.2 1.7
Universal Health Services, Inc.
Class B 1.2 0.8
Evered Bardon PLC 0.8 0.5
Industrias Penoles A2 0.8 0.6
Free State Consolidated Gold
Mines Ltd. ADR 0.7 0.7
TOP FIVE INDUSTRIES AS OF JANUARY 31, 1994
% OF FUND'S % OF FUND'S
INVESTMENTS INVESTMENTS
IN THESE INDUSTRIES
6 MONTHS AGO
Finance 12.9 12.6
Technology 11.4 11.4
Durables 7.2 7.5
Basic Industries 7.0 3.2
Energy 6.8 7.0
ASSET ALLOCATION
AS OF JANUARY 31, 1994 * AS OF JULY 31, 1993 *
Row: 1, Col: 1, Value: 11.4
Row: 1, Col: 2, Value: 1.0
Row: 1, Col: 3, Value: 48.2
Row: 1, Col: 4, Value: 40.0
Row: 1, Col: 1, Value: 15.0
Row: 1, Col: 2, Value: 1.0
Row: 1, Col: 3, Value: 44.8
Row: 1, Col: 4, Value: 40.0
Stocks 88.2%
Bonds 0.4%
Short-term
Investments 11.4%
Stocks 84.8%
Bonds 0.2%
Short-term
Investments 15.0%
* FOREIGN
INVESTMENTS 26.7%
* FOREIGN
INVESTMENTS 23.9%
INVESTMENTS JANUARY 31, 1994 (UNAUDITED)
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 87.5%
SHARES VALUE (NOTE 1)
(000S)
AEROSPACE & DEFENSE - 1.3%
AEROSPACE & DEFENSE - 0.8%
Allied Research Corp. (b) 220,810 $ 1,684 01948310
Aviall, Inc. (b) 84,400 1,477 05366B10
Datron Systems, Inc. (Calif.) (b)(d) 247,200 2,472 23817310
Greenwich Air Services, Inc. (b) 10,000 68 39678110
Thiokol Corp. 224,200 6,053 88410310
Transtechnology Corp.(d) 311,000 4,626 89388910
16,380
DEFENSE ELECTRONICS - 0.3%
ARX, Inc. (b) 147,000 662 00190910
Cubic Corp. 75,300 1,647 22966910
ESCO Electronics Corp. (trust receipt) (b) 402,500 4,880 26903020
7,189
SHIP BUILDING & REPAIR - 0.2%
VSEL Consortium PLC 325,000 4,894 91828599
TOTAL AEROSPACE & DEFENSE 28,463
BASIC INDUSTRIES - 6.9%
CHEMICALS & PLASTICS - 2.2%
AEP Industries, Inc. (d) 416,475 6,351 00103110
Aceto Corp. (d) 405,032 5,670 00444610
Atlantis Group, Inc. Class A (b) 97,900 551 04914710
Cominco Fertilizer Ltd. (b) 75,000 1,467 20043C10
Cominco Fertilizer Ltd. (warrants) (b) 275,000 5,380 20043C92
Cytec Industries, Inc. (b) (g) 113,600 1,832 23282010
Dongsung Chemical Industry Co. (b) 4,660 117 25799V22
Georgia Gulf Corp. (b) 85,600 2,076 37320020
IMC Fertilizer Group, Inc. 50,000 2,181 44966910
Indo Gulf Fertilizer and Chemicals GDR 35,000 172 45577P10
Kinark Corp. (b)(d) 304,300 1,350 49447410
OM Group, Inc. (b) 100,000 2,225 67087210
Oil Dri Corporation of America 205,700 4,628 67786410
Potash Corp. of Saskatchewan 26,200 747 73755L10
Potash Corp. of Saskatchewan (warrants) (b) 55,000 797 73755L11
Ropak Corp. (b)(d) 267,500 1,538 77667010
Skrinet AB B Free shares (b) 25,000 149 83099D22
Spartech Corporation (b)(d) 738,000 3,552 84722020
Sudbury, Inc. 400,000 3,000 86463520
Tessenderlo Chemie NV 16,300 4,168 88161299
47,951
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
IRON & STEEL - 1.6%
Bjolvefossen (b) 2,000 $ 30 07399192
Compania Siderurgica Nacional (b) 41,970,000 1,244 24499523
Friedman Industries, Inc. 143,300 627 35843510
Insteel Industries, Inc. 175,531 1,733 45774W10
Intermetco Ltd. 40,100 249 45881510
Iscor Ltd. (b) 546,600 299 46499C22
Laclede Steel Co. (b) 64,000 1,136 50560610
Proler International Corp. (b) 183,600 2,662 74339610
Rautaruukki OY Class K 500,000 5,024 75499722
Roanoke Electric Steel Corp. (d) 274,700 4,395 76984110
Samuel Manu-Tech, Inc. 100,000 1,693 79606J10
Schnitzer Steel, Inc. Class A 40,000 1,240 80688210
Shaw Industries Ltd. Class A 50,000 433 82090420
Steel of West Virginia, Inc. (b)(d) 480,700 6,730 85815410
Usiminas PN (Reg.) (h) 2,461,200 2,146 97199693
Wheeling Pittsburgh Corp. (b) 196,100 4,314 96314210
33,955
METALS & MINING - 2.1%
Acier Leroux Class B 50,000 188 00450D20
Alumax, Inc. 20,000 535 02219710
Castle AM & Co. 185,500 3,525 14841110
De Beers Consolidated Mines Ltd. ADR 1,176,900 26,922 24025330
Draka Holding NV 62,500 1,319 26199B22
Outokumpu Oy Class A (b) 183,000 2,884 69099992
Rand Mines Ltd. 100,000 305 75222810
Resolute Resources Ltd. (b) 500,000 770 76091510
Terra Mining AB (b)(f) 290,000 7,769 90699E23
Wolverine Tube, Inc. (b) 64,000 1,464 97809310
45,681
PACKAGING & CONTAINERS - 0.5%
Alltrista Corp. (b) 92,700 1,669 02004010
Owens-Illinois, Inc. (b) 563,200 6,547 69076840
PCI Services, Inc. (b) 184,700 2,216 69320610
10,432
PAPER & FOREST PRODUCTS - 0.5%
Abitibi Price, Inc. Installment Receipts 37,100 174 00368070
Ainsworth Lumber Ltd. (b) 50,000 630 00891410
Enso Gutzeit OY R Free shares 300,000 2,334 29357810
Groupe Forex, Inc. 50,000 513 39945010
International Forest Products Class A (b) 25,000 383 45953E10
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS - CONTINUED
Pacific Forest Products Ltd. 25,000 $ 365 69428P10
Repola OY 232,000 4,881 75999A92
Sappi Ltd. 100,000 735 82799B92
Westralian Forest Industries Ltd. (b) 6,400 21 96199E22
10,036
TOTAL BASIC INDUSTRIES 148,055
CONGLOMERATES - 2.0%
Brierley Investments Ltd. 16,721,752 13,586 10901410
Figgie International Holdings, Inc. Class A 32,200 415 31682850
First Pacific Co. Ltd. 1,541,322 783 33699192
Instrument Systems Corp. (b) 791,800 7,225 45779430
Kinnevik Investment B Free shares 25,000 648 49699092
Medalist Industries, Inc. (b)(d) 381,100 5,431 58402010
Perry Group 150,000 508 71499292
Quixote Corp. (d) 525,900 9,203 74905610
Trafalgar House PLC Ord. 3,500,000 5,745 89270710
43,544
CONSTRUCTION & REAL ESTATE - 6.2%
BUILDING MATERIALS - 2.9%
AMRE, Inc. (d) 1,058,800 4,765 03215310
Anchor Machine and Manufacturing Ltd. 100,000 602 03306H10
CGC, Inc. 186,000 1,539 12527K10
Devcon International Corp. (b) 103,600 686 25158810
Drew Industries, Inc. (b)(d) 415,600 4,156 26168L20
Elco Industries, Inc. (d) 295,500 6,279 28442010
Eljer Industries, Inc. (b) 62,000 504 28716110
Evered Bardon PLC (b) 22,677,400 18,270 29999010
Ibstock Johnsen PLC 2,000,600 2,651 45905799
Mestek, Inc. (b) 62,600 649 59082910
Parbury Ltd. (b) 250,000 106 69999392
Patrick Industries, Inc. (b)(d) 157,750 4,733 70334310
RB&W Corp. (b)(d) 580,000 3,915 74925210
Shelter Components Corp. 138,750 3,035 82283510
Sico, Inc. (d) 267,200 2,513 82585G10
Sungshin Cement Industrial (b) 6,515 290 90399G22
Swegon AB B Free shares (b) 11,500 53 87099F22
U.S. Intec, Inc. (b)(d) 296,900 2,709 91208410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
BUILDING MATERIALS - CONTINUED
Watsco, Inc. (d):
Class A 254,400 $ 3,625 94262220
Class B cv 69,920 988 94262210
Yips Hang Cheung Holdings Ltd. 2,250,000 816 99599592
62,884
CONSTRUCTION - 2.5%
AAF Industries PLC 1,450,000 917 17099B92
Abbey Ltd. (b) 650,000 1,997 00399592
Cavco Industries, Inc. (b)(d) 174,500 3,621 14956710
Engle Homes, Inc. 153,600 2,534 29289610
Gleeson (M.J.) Group 50,000 745 37799292
Grupo Mexicano de Desarrollo ADR (b):
Class B 25,000 616 40048G10
Class L 45,000 1,131 40048G20
Higgs and Hill PLC 2,500,000 5,270 42999492
Jacobson & Widmark AB Fria 175,000 1,400 46999522
Lovell (Y.J.) Holdings (b) 2,925,000 748 54799322
McAlpine (Alfred) Ord. 603,500 2,545 57999010
Miller Building Systems, Inc. (d) 181,000 724 60040410
Monaco Coach Corp. (b) 30,000 413 60886R10
Mowlem (John) & Co. PLC 3,100,739 7,844 62499692
Oriole Homes Corp.
Class A 75,700 927 68626410
Class B (d) 269,000 3,363 68626420
Oslo Havnelager (b) 443,700 262 68499D22
Perini Corp. (b) 156,300 1,876 71383910
Standard Pacific Corp. 13,500 159 85375C10
Sundance Homes, Inc. (b) 55,000 598 86724Q10
Tay Homes PLC 2,266,666 8,021 91699A92
Taylor Woodrow PLC 1,200,000 2,954 87667410
Turner Corp. (b) 224,200 1,710 90027310
U.S. Home Corp. (b) 35,245 1,018 91192010
Veidekke AS 75,000 2,215 93699592
53,608
ENGINEERING - 0.2%
Agra Industries Ltd. Class A cv 65,200 478 00848930
Corrpro Companies, Inc. (b) 163,700 3,520 22031710
FA Tucker Group, Inc. (b) 46,000 118 30239610
Goldfield Corp. (b) 326,100 204 38137010
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONSTRUCTION & REAL ESTATE - CONTINUED
ENGINEERING - CONTINUED
Heist (C.H.) Corp. (b) 49,100 $ 350 42307610
Simard Beaudry, Inc. 60,000 221 82857E10
4,891
REAL ESTATE - 0.1%
Castle & Cooke Homes, Inc. 28,500 438 14842610
Consolidated Carma Corp. Class A (b) 75,000 229 20891010
McLeod Russell Holdings PLC 400,000 723 58225599
Melcor Developments Ltd. 20,000 167 58546710
South Sea Development Co. (b) 1,277,936 132 83999C22
1,689
REAL ESTATE INVESTMENT TRUSTS - 0.5%
Banyan Short Term Income Trust (SBI) (b)(d) 653,200 939 06683L10
Banyan Strategic Land Trust (SBI) (d) 991,750 4,463 06683M10
First Union Real Estate Equity & Mortgage Investments 341,400 3,499
33740010
Rockefeller Center Properties, Inc. 164,400 1,192 77310210
10,093
TOTAL CONSTRUCTION & REAL ESTATE 133,165
DURABLES - 7.2%
AUTOS, TIRES, & ACCESSORIES - 2.4%
Appleyard Group 1,384,500 3,607 03814599
Autocam Corp. (b) 147,450 2,949 05290710
Budd Canada, Inc. 20,000 406 11883110
Champion Parts, Inc. (b)(d) 357,500 1,586 15860910
Cook (D.C.) Holdings PLC 405,800 244 21299592
Davenport Vernon 600,000 1,382 23899B22
Deflectashield Corp. 43,000 731 24476410
Douglas & Lomason Co. 20,000 405 25877710
Durakon Industries, Inc. (b) 320,600 5,851 26633410
Federal Screw Works (d) 102,500 1,601 31381910
Forsheda AB B Free shares (b) 10,000 590 34699922
Hahn Automotive Warehouse, Inc. (b) 91,700 1,043 40519110
Lookers PLC 25,000 96 54399922
Lund International Holdings, Inc. (b)(d) 352,500 7,755 55036810
Mercury Air Group (b)(d) 166,300 727 58935410
Mid-States PLC 210,407 390 60499692
Monro Muffler Brake, Inc. (b) 135,200 2,603 61023610
Peugeot SA Ord. (b) 25,000 3,711 71682510
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES - CONTINUED
Republic Automotive Parts, Inc. (b)(d) 293,700 $ 3,965 76028010
Supreme Industries, Inc. (b):
Class A 128,900 854 86860710
Class A Contempri Homes & 1 warrant call 42,966 43 86860720
Titan Wheel International, Inc. 94,400 2,620 88832810
Treadco, Inc. 5,000 94 89454510
Trico Products Corp. (b) 8,500 195 89611410
Uni Marts, Inc. 110,700 720 90457130
Uni Select, Inc. 420,000 3,358 90457D10
Valley Forge Corp. 70,700 946 91964010
Williams Controls, Inc. (b) 190,000 511 96946510
Wynn's International, Inc. 187,400 4,123 98319510
53,106
CONSUMER DURABLES - 0.8%
American Consumer Products, Inc. (b)(d) 206,000 566 02523610
Libbey, Inc. (b)(d) 900,000 15,075 52989810
Syratech Corp. (b) 104,200 1,902 87182410
Unican Security Systems Ltd. Class B 15,000 260 90458940
17,803
CONSUMER ELECTRONICS - 1.0%
Boston Acoustics, Inc. 58,000 979 10053410
Fedders USA Inc. (b) 272,600 1,976 31313510
Harman International Industries, Inc. (b) 238,000 7,378 41308610
International Jensen, Inc. (d) 516,000 4,128 45972110
Koss Corp. (b)(d) 280,700 3,439 50069210
Polk Audio, Inc. (b)(d) 107,500 1,048 73090010
Toastmaster, Inc. (b)(d) 588,400 3,972 88879110
22,920
HOME FURNISHINGS - 0.8%
Airsprung Furniture Group PLC 515,000 2,365 01099A92
Ameriwood Industries International, Inc. (b) 5,000 94 03070M10
BMTC Group, Inc. Class A (sub-vtg.) 125,000 776 05561N10
Bush Industries, Inc. Class A 109,600 2,685 12316410
Centercore, Inc. (b) 73,000 64 15186710
DMI Furniture, Inc. (b)(d) 292,000 839 23323010
Dorel Industries (f):
Class A (vtg.) 46,200 430 25822C30
Class B (sub-vtg.) (b) 49,600 457 25822C20
Haverty Furniture Companies, Inc. 202,050 3,536 41959610
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
DURABLES - CONTINUED
HOME FURNISHINGS - CONTINUED
Huffman Koos, Inc. (b)(d) 361,500 $ 2,350 44432210
Pulaski Furniture Corp. 107,500 2,795 74555310
16,391
TEXTILES & APPAREL - 2.2%
Barry (R.G.) Corp. (b) 61,300 1,050 06879810
Casket PLC 880,184 749 14799592
Concord Fabrics, Inc.:
Class A (b)(d) 203,700 1,935 20621920
Class B (b) 65,100 602 20621930
Cone Mills Corp. (b) 345,400 5,311 20681410
Decorator Industries, Inc. 59,100 576 24363120
Donnkenny, Inc. (Del.) (b) 142,700 2,693 25800610
Forstmann & Co., Inc. (b) 245,500 2,946 34659270
G-III Apparel Group Ltd. (d) 479,120 1,916 36237H10
HE-RO Group Ltd. (b) 201,900 404 42204710
High Fashion International 1,448,000 380 42999392
Jacques Vert PLC (b) 35,000 105 46999422
McRae Industries, Inc. Class A 60,300 588 58275720
Nautica Enterprises, Inc. (b) 416,275 9,887 63908910
Nority International Group, Ltd. (b) 2,500,000 259 63699692
Orbit Instrument Corp. (b) 294,500 1,252 68555910
Peerless Carpet Corp. (b) 488,400 1,543 70490110
Porter Chadburn PLC 5,815,000 1,751 73699392
Raven Industries, Inc. 17,450 349 75421210
Shinwon Corp. (b) 10,620 321 98499D92
Supreme International Corp. 37,000 389 86861010
Tandy Brands Accessories, Inc. (b) 142,425 2,492 87537810
Tokyo Style Co. Ltd. 50,000 869 88999410
Tufco Technologies, Inc. 75,000 675 89904010
Victoria Carpet Holdings PLC 50,000 98 92699E92
WEW Group PLC 4,460,480 4,265 96299F22
Westpoint Stevens, Inc. Class A (b) 73,200 1,427 96123810
Wolf (Howard B.), Inc. 48,400 381 97772510
Worldtex Corp. (b) 240,900 1,265 98190710
Yue Yuen Industrial Holdings Ltd. 2,000,000 609 98899D92
47,087
TOTAL DURABLES 157,307
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - 6.7%
ENERGY SERVICES - 1.4%
Akita Drilling Ltd. Class A (non-vtg.) (b) 563,150 $ 1,737 00990510
Aztec Manufacturing Co. (d) 417,500 2,609 05482510
Cliffs Drilling Co. (b)(d) 294,800 3,980 18682C10
Computalog Gearhart Ltd. (b) 575,000 1,082 20490810
Dawson Geophysical Co. (b) 25,500 210 23935910
Dreco Energy Services Ltd. Class A (b) 109,500 1,205 26152820
Galveston Houston Co. 576,700 2,235 36442410
Greenway Holdings PLC 360,000 445 49699992
Input/Output, Inc. (b) 102,600 2,937 45765210
Key Energy Group, Inc. (b) 149,900 731 49291410
Maverick Tube Corp. (b) 61,800 579 57791410
Nabors Industries, Inc. (b) 535,800 4,086 62956810
Patterson Energy (warrants) (b) 15,000 9 70341411
Pe Ben Oilfield Services Ltd. (b) 150,000 451 70453510
Precision Drilling Class A (b) 92,500 1,114 74022D10
Scientific Software Intercomp, Inc. (b)(d) 347,000 2,559 80879610
Smalls Oilfield Services Corp. (b)(d) 164,000 943 83168210
Transocean Drilling AS 423,600 2,672 93499492
Wheatley TXT Corp. 18,500 217 96271810
29,801
INDEPENDENT POWER - 0.0%
O'Brien Energy Systems, Inc. Class A (b)(d) 532,700 1,032 67444810
OIL & GAS - 5.3%
Adams Resources and Energy, Inc. 138,100 656 00635130
Alamco, Inc. (b)(d) 205,800 1,389 01074220
Ampolex Ltd. Ord. 400,000 1,501 03212792
Apache Corp. 41,615 1,040 03741110
Aran Energy (b) 12,524,200 4,903 03899999
Belden & Blake Corp. (b)(d) 434,500 5,540 07744710
Belden and Blake Corp. (b)(e)(g) 105,000 1,339 07744793
Bligh Oil & Minerals NL (b) 2,000,000 369 09399192
Bridge Oil Ltd. 21,159,000 9,155 10805399
British Borneo Petroleum 441,100 1,528 11099D22
Brock Exploration Corp. (b) 185,000 462 11162810
Camco International, Inc. 290,000 4,785 13263210
Canadian Foremost Ltd. (b) 100,000 696 13570830
Castle Energy Corp. (b)(d) 934,750 9,581 14844930
Coho Resources, Inc. 262,200 1,114 19248110
Columbus Energy Corp. (b)(d) 209,600 2,148 19906410
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
ConVest Energy Corp. (b)(d) 419,700 $ 3,567 21257710
Cube Energy Corp. (b) 71,100 395 22966E10
DEKALB Energy Corp. Class B (b) 285,500 4,068 24487410
Devran Petroleum Ltd. 500,000 418 25188T10
ENEX Resources Corp. (b)(d) 144,300 1,227 29274420
ERC Industries, Inc. (b) 60,000 60 26891210
Giant Industries, Inc. (b)(d) 1,174,000 11,740 37450810
Goal Petroleum Ord. 5,031,600 4,470 37199192
Hallwood Consolidated Resources Corp. 347,000 998 40636V10
Hardy Oil & Gas PLC 2,370,000 5,532 41299192
Howell Corp. 89,100 1,125 44305110
Key Production Co., Inc. (b) 109,000 327 49313810
Maynard Oil Co. (b) 131,000 688 57844410
McFarland Energy, Inc. (b) 150,300 714 58043210
Nahama & Weagant Energy Co. (b) 102,000 446 62977520
Norcen Energy Resources Ltd. 400,000 4,815 65549285
Oil Search Ltd. 2,500,000 1,862 67799992
Parker & Parsley Petroleum Co. 274,500 7,206 70101810
Petroleum Development Corp. (b)(d) 948,000 1,600 71657810
Petroz (b) 2,000,000 709 71699B92
Petroz (rights) (b) 800,000 74 71699B93
Prairie Oil Royalties Co. Ltd. (b) 158,100 1,423 73964710
Premier Consolidated Oilfields Ltd. Ord. (b) 7,250,000 2,839 74047810
Repsol SA sponsored ADR 100,000 3,413 76026T20
Swift Energy Co. (b) 31,000 322 87073810
Tesoro Petroleum Corp. (b) 60,000 638 88160910
Vaalco Energy, Inc. (b) 37,500 206 91851C20
Williams Clayton Energy, Inc. (b) 246,700 3,577 96949010
YPF Sociedad Anonima sponsored ADR representing
Class D shares 125,000 3,609 98424510
114,274
TOTAL ENERGY 145,107
FINANCE - 12.8%
BANKS - 2.3%
Akita Bank 75,000 517 00999692
Alandsbanken AB Shares K 50,000 816 01199922
BANCFIRST Corp. 122,200 1,772 05945F10
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
BANKS - CONTINUED
Bank of New Hampshire Corp. 29,000 $ 522 06385410
Bank of New York Co., Inc. (warrants) (b) 417,500 4,175 06405711
Bryn Mawr Bank Corp. 48,500 1,540 11766510
Centura Banks, Inc. 142,800 2,910 15640T10
Christiania Bank Free Shares Ord. (b) 648,000 1,557 17100792
Community Bancorp, Inc. New York 17,200 241 20343J10
Community Bankshares, Inc. New Hampshire 58,100 726 20363010
Dundee Bancorp (sub-vtg.) (b) 100,000 809 26490110
Fidelity NY F.S.B. Garden City (b) 49,600 849 31633610
Foreningsbanken AB Class A Ord. (b) 1,650,000 4,190 34599E22
Forstaedernes Bank (Reg.) 25,000 375 34699722
GBC Bancorp California (d) 453,000 6,965 36147510
Grant Street National Bank (b) 1,412,834 486 38821610
Gronlandsbanken AS 15,900 591 39799522
HUBCO, Inc. 101,480 2,334 40438210
Independent Bank Corp. (Mass.) (b) 286,000 1,358 45383610
KSB Bancorp, Inc. (b) 5,000 70 48266710
MIDT Bank AS 50,000 714 59899B22
Merchants Bancorp 19,000 427 58843810
Nordlandsbanken AS 53,700 1,398 67599F22
Okobank Class A (b) 153,500 2,311 69299222
SouthTrust Corporation 149,400 2,839 84473010
Sparebanken Norway Prime Shares (b) 129,000 2,857 84699E22
Sumitomo Bank California 20,800 510 86559310
Summit Bancorp, Inc. Washington (d) 169,200 1,311 86600710
T R Financial Corp. (b) 335,200 4,232 87263010
49,402
CLOSED END INVESTMENT COMPANY - 0.1%
Amagerbanken AS 50,000 1,821 02299092
CREDIT & OTHER FINANCE - 0.5%
Amtsspar Fyn Holding AS 10,000 743 03299E92
Central Mortgage Bancshares, Inc. 125,000 1,844 15420710
Gencor Ltd. (Reg.) (b) 100,000 185 36868193
Gencorp Ltd. ADR 468,000 842 36868120
Intrum Justitia NV (Reg.) 685,000 1,207 46299292
Norgeskreditt 60,000 1,248 65699C22
Seven Network Ltd. 100,000 310 81799F22
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE - CONTINUED
Student Loan Corp. 137,000 $ 2,672 86390210
Surrey Metro Savings Credit Union (non-vtg.) (d) 144,900 2,208 86890210
Sydostinvest AB B Free shares (b) 50,000 168 88799B22
11,427
INSURANCE - 3.3%
AFLAC, Inc. 50,000 1,394 00105510
ARI Holdings, Inc. (b)(d) 170,900 620 00204W10
American Indemnity Financial Corp. (d) 194,000 2,716 02675910
American Travellers Corp. (b) 416,000 5,720 03029010
Capitol American Financial Corp. 7,100 160 14055J10
Donegal Group, Inc. 67,000 1,256 25770110
First American Financial Corp. California 80,000 2,960 31852230
Gainsco, Inc. 177,698 1,688 36312710
Heath (CE) International Holdings 977,882 1,304 42299992
Homeowners Group, Inc. 223,000 892 43739N10
Kentucky Medical Insurance Co. Class A (b) 48,500 364 49135910
London Insurance Group, Inc. 566,900 11,410 54183010
Lowndes Lambert Group Holdings PLC (b) 60,000 423 54899392
Merchants Group, Inc. (b)(d) 304,300 5,097 58853910
Meridian Insurance Group, Inc. 243,200 2,766 58964410
Mid South Insurance Co. (d) 258,100 2,904 59543310
Paul Revere Corp. (b) 29,000 736 70355910
RLI Corp. 116,600 2,798 74960710
Royale Insurance Co. Ltd. 200,000 1,015 78074910
Security-Connecticut Corp. 10,000 217 81416010
Stewart Information Services Corp. (d) 358,600 10,624 86037210
United Coasts Corp. (b) 220,000 1,072 90991010
United Insurance Companies, Inc. (b) 323,000 8,075 91070310
United Wisconsin Services, Inc. 184,400 5,532 91323610
71,743
SAVINGS & LOANS - 6.4%
Abington Savings Bank - Massachusetts (b)(d) 145,200 1,670 00358610
Andover Bancorp, Inc. (Del.) (d) 103,300 1,821 03425810
Astoria Financial Corp. (b) 400,000 12,000 04626510
BFS Bankorp, Inc. (d) 82,960 1,493 05540710
Bankatlantic Federal Savings Bank 151,400 2,044 06590310
Bankunited Financial Corp. Class A 76,850 576 06652B10
Braintree Savings Bank (Mass) (d) 116,000 1,421 10502710
CB Bancorp, Inc. (d) 43,000 1,010 12493610
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SAVINGS & LOANS - CONTINUED
CF Bancorp, Inc. 26,500 $ 636 12520110
CSB Financial Corp. 133,000 1,762 12628810
Calumet Bancorp, Inc.(d) 154,000 5,159 13138610
Capital Savings Bancorp, Inc. 25,000 334 14045910
Cenit Bancorp, Inc. (d) 123,600 2,812 15131W10
Central Co-operative Bank of Somerville (Mass) (b) 25,500 268 15313710
Charter One Financial Corp. 165,204 3,242 16090310
Circle Financial Corp. (d) 65,400 1,700 17256410
Citadel Holding Corp. (b)(d) 364,968 2,600 17286210
Cooperative Bank Savings, Inc. (b) 104,650 2,472 21684310
Crossland Federal Savings Bank Brooklyn (NY) (b) 10,000 312 22764B10
Dime Savings Bank of New York, FSB (b) 826,900 7,235 25432R10
Eagle Bancshares, Inc. 1,000 24 26942C10
Eastern Bancorp 37,500 666 27626910
GP Financial Corp. (b) 425,000 8,447 36193510
FCB Financial Corp. 45,000 630 30193210
FFE Financial Corp.(d) 30,000 345 30242S10
FFY Financial Corp. 71,000 1,021 30242U10
Federal Savings Bank - New Britain (CT) (d) 85,000 1,084 31380810
Financial Security Corp. (b)(d) 108,300 1,624 31766010
First Federal Financial Services 33,250 848 33791210
First Federal Savings & Loan Assn. (Conn.) 31,700 511 31994410
First Federal Savings Bank of Puerto Rico (b)(d) 481,162 7,759 31993610
First Palm Beach Bancorp, Inc. (b) 185,000 2,867 33589B10
First Southeast Financial Corp. (d) 307,000 4,029 33644E10
First State Financial Services, Inc. (d) 280,000 1,855 33690610
First Western Financial Corp. (b) 147,000 1,158 33753110
Firstrock Bancorp, Inc. (b) 21,800 371 33761V10
FirstFed Michigan Corp. 54,300 1,242 33761R10
HF Financial Corp. (d) 113,800 2,617 40417210
Haven Bancorp, Inc. (b)(d) 272,600 3,442 41935210
Independence Federal Savings Bank (d) 119,500 1,016 45343210
Iroquois Bancorp, Inc. 41,500 737 46334710
Kankakee Bancorp, Inc. (b) 81,500 1,467 48424310
LF Bancorp, Inc. (b)(d) 43,000 796 50185110
Lakeview Savings Bank 96,600 1,232 51234610
Main Street Community Bancorp (b) 35,000 446 56035010
Marion Capital Holdings, Inc. (d) 174,000 2,654 56863510
Maryland Federal Bancorp, Inc. (d) 227,257 5,965 57406110
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
FINANCE - CONTINUED
SAVINGS & LOANS - CONTINUED
Metro Bancshares, Inc. (d) 420,225 $ 6,934 59160C10
NFS Financial Corp. (d) 200,000 3,350 62910410
North American Savings Bank FSB Grandview (MO) (b) 26,500 570 65715610
Peterborough Savings Bank 6,595 72 71603K10
Plains Spirit Financial Corp. 91,200 2,052 72654410
Potter Savings & Loan Co. 7,000 67 73810910
Progressive Bank, Inc. (d) 165,700 3,231 74331310
Quaker City Bancorp (b) 20,000 193 74731K10
SFFED Corp. 103,100 1,907 78413210
Security Capital Corp. (b) 20,000 755 81413310
Suburban Bancorporation, Inc. (d) 152,000 1,805 86434810
Sunrise Bancorp (d) 357,000 5,623 86768H10
Third Financial Corp. (b)(d) 68,000 1,139 88413810
Virginia First Financial Corp. 97,000 1,479 92781210
Warren Bancorp, Inc. (b)(d) 233,500 1,926 93471010
West Massachusetts Bancshares, Inc. (d) 108,500 1,736 95425010
138,259
SECURITIES INDUSTRY - 0.2%
First Albany Cos., Inc. 41,213 381 31846510
Mackenzie Financial Corporation 50,000 437 55453110
Marine Wendel SA 20,000 1,613 56991990
Marine Wendel SA (warrants) (b) 25,000 62 56991992
Stifel Financial Corp. 70,592 706 86063010
Tokyo Securities Co. Ltd. 100,000 736 89799C92
3,935
TOTAL FINANCE 276,587
HEALTH - 5.8%
DRUGS & PHARMACEUTICALS - 0.6%
Astra AB B Free Shares 100,000 2,336 04632299
Daewoong Pharmaceutical Corp. (b) 9,697 524 29999992
Gist-Brocades NV 67,500 2,005 37639991
International Research & Development Corp. 68,000 230 46026310
Nature's Sunshine Products, Inc. 415,900 5,303 63902710
North American Biologicals, Inc. (b) 633,461 2,771 65675510
13,169
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES - 0.5%
ADAC Laboratories 25,000 $ 319 00531320
Bird Medical Technologies, Inc. (b) 22,000 85 09081710
HPSC, Inc. (b) 229,500 717 40426410
Healthdyne Technologies, Inc. (b) 80,000 980 42220610
Hologic, Inc. (b) 27,500 158 43644010
Instrumentarium Class B (b) 40,000 2,960 45780510
Medical Technology Systems, Inc. (b) 142,500 1,318 58462R50
Mentor Corp. 9,100 143 58718810
Moore Medical Corp. (b) 46,800 684 61579910
PSICOR, Inc. (b) 45,500 489 74490110
Span-America Medical Systems, Inc. (d) 285,700 1,500 84639610
Utah Medical Products, Inc. 157,800 1,124 91748810
10,477
MEDICAL FACILITIES MANAGEMENT - 4.7%
HCA - Hospital Corporation of America Class A (b) 715,700 27,823
40412010
Healthinfusion, Inc. (b) 77,500 533 42221C10
Living Centers of America, Inc. (b) 162,900 4,419 53838810
National Health Laboratories, Inc. 1,798,000 26,296 63633F10
National Home Health Care Corp. (b) 147,500 369 63638010
Pharmchem Laboratories, Inc. (b) 145,800 419 71713310
Ramsay Health Care, Inc. (b) 30,000 233 75158220
Rotech Medical Corp. (b) 130,000 2,275 77890110
Salick Health Care, Inc. (b) 35,000 595 79469010
Sierra Health Services, Inc. (b) 67,000 1,792 82632210
Sierra Tucson Companies, Inc. (b) 315,000 1,339 82650410
Summit Health Ltd. 1,066,700 9,600 86606410
Universal Health Services, Inc. Class B (b)(d) 1,187,000 26,114 91390310
Vivra, Inc. (b) 58,350 1,371 92855M10
103,178
TOTAL HEALTH 126,824
INDUSTRIAL MACHINERY & EQUIPMENT - 5.8%
ELECTRICAL EQUIPMENT - 1.5%
Arrow Automotive Industries, Inc. (b) 34,200 308 04272710
BMC Industries, Inc. (b)(d) 398,700 8,273 05560710
C-COR Electronics, Inc. 65,900 1,219 12501010
Charter Power Systems, Inc. 155,100 1,842 16132210
Expamet International Ord. 839,000 872 30299392
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
ELECTRICAL EQUIPMENT - CONTINUED
Hughes Supply, Inc. 49,100 $ 1,203 44448210
ICOM, Inc. 100,000 1,380 44999A92
IEC Electronics Corp. (b) 238,300 3,932 44949L10
Philips NV (warrants) (b) 500,000 4,735 71833792
Radiation Systems, Inc. 44,500 784 75031010
Reunert Ltd. (b) 25,000 71 76199A22
Star Paging International Holdings Ltd. 516,000 202 85599692
Twentsche Kabel Holding NV 10,000 1,174 91030099
Vertex Communications Corp. (b)(d) 437,000 6,118 92532010
WPI Group, Inc. (b)(d) 227,700 968 92930K10
Whitecroft PLC (b) 385,000 609 96499A92
Willcox & Gibbs, Inc. (b) 56,900 462 96920710
34,152
INDUSTRIAL MACHINERY & EQUIPMENT - 3.0%
AGCO Corp. 65,900 2,620 00108410
Alamo Group, Inc. 80,600 1,269 01131110
Allied Products Corp. (b) 438,500 6,523 01941110
Amtrol, Inc. 110,800 2,161 03234A10
Arts Way Manufacturing Co., Inc. (b) 55,000 619 04316810
Astec Industries, Inc. (b) 277,000 4,432 04622410
CMI Corp. Oklahoma Class A 344,600 2,886 12576130
CPAC, Inc. (d) 246,925 2,037 12614510
Core Industries, Inc. 354,600 5,142 21867510
EDAC Technologies Corp.(d) 372,300 512 27928510
Econosto NV 50,000 659 27903299
Enerflex SYS, Ltd. 45,000 533 29265B10
FSI International, Inc. (b)(d) 518,400 6,869 30263310
Gehl Co. (b) 224,900 1,659 36848310
Haden MacLellan Holdings PLC Ord. 515,000 582 40499092
Hawker Siddely Canada, Inc. 35,000 678 42012810
IWP International 50,000 289 45199A92
JLG Industries, Inc. 109,400 2,995 46621010
K-Tron International, Inc. (b) 133,500 1,235 48273010
Korea Machinery Co. Ltd. (b) 6,470 63 50599H22
Kverneland Gruppen AS (b) 111,600 1,034 50599692
Lincoln Foodservice Products, Inc. (b)(d) 329,600 3,008 53358010
Mark Controls Corp. (b) 86,500 1,243 57038N10
Newcor, Inc. 12,500 127 65118610
Park-Ohio Industries, Inc. (b) 128,100 1,873 70067710
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED
Rule Industries, Inc. (b) 55,000 $ 543 78135510
Salem Corp. 35,550 529 79409910
Speizman Industries, Inc. (b) 82,500 1,330 84780510
Summa Industries 73,750 360 86562T10
Svedala (b) 115,000 2,614 91199A92
Valmet Corp. Ord. (b) 100,000 1,850 92029991
Varlen Corp. 220,350 5,894 92224810
Welbilt Corporation (b) 5,000 99 94908710
64,267
POLLUTION CONTROL - 1.3%
American Ecology Corp. (b) 165,700 1,740 02553310
Chempower, Inc. (b)(d) 664,600 2,492 16386510
GZA GeoEnvironmental Technologies, Inc. (b) 129,300 776 36238610
Horsehead Resource Development Inc. 93,000 360 44069910
International Recovery Corp. (b)(d) 345,000 5,175 46024210
International Technology Corp. (b) 1,013,100 3,419 46046510
MFRI, Inc. (d) 327,000 2,371 55272110
NSC Corp. (b) 165,500 703 62938T10
Sani Gestion, Inc. 62,400 211 80090210
Sevenson Environmental Services, Inc. (b) 99,300 1,713 81806310
TRC Companies, Inc. (b) 217,300 2,716 87262510
Tanknology Environmental, Inc. (b) 500,000 2,937 87591810
Weston (Roy F.), Inc. Class A (b)(d) 408,600 3,933 96113710
28,546
TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 126,965
MEDIA & LEISURE - 3.3%
BROADCASTING - 0.3%
Canwest Global System Corp.:
(sub-vtg.) 106,500 2,404 13890610
(warrants) (b) 50,000 621 13890611
Cogeco, Inc. 102,100 1,017 19238T10
Premier Choix Tvec, Inc. Class A 171,400 1,515 74047M10
Prime Television Ltd. 202,581 274 74199C22
Radiomutuel, Inc. Class A 51,000 184 75041D10
6,015
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
ENTERTAINMENT - 0.0%
Owners Abroad Group 100,000 $ 149 69199193
S-K-I Ltd. 74,000 1,018 78440610
United Video, Inc. (b) 80,200 641 91325310
1,808
LEISURE DURABLES & TOYS - 0.7%
ARCTCO, Inc. 248,300 5,835 03966510
Anthony Industries, Inc. 75,184 1,259 03679810
Baldwin Piano & Organ Co. (d) 274,300 4,663 05824610
Coachmen Industries, Inc. 88,900 1,411 18987310
Coast Distribution System (b) 50,700 361 19034510
Escalade, Inc. (b) 70,500 652 29605610
Hong Kong Toy Centre 1,000,000 145 43899692
Outboard Marine Corp. 8,000 193 69002010
Varsity Spirit Corp. 48,200 807 92229410
15,326
LODGING & GAMING - 0.6%
Friendly Hotels PLC 266,666 811 35899694
Queens Moat Houses PLC (b) 7,000,000 1,239 74750099
Resort Hotels PLC 1,690,200 1,031 75499492
Sands Regent (The) 93,572 1,170 80009110
Servico, Inc. (b) 79,300 575 81764810
Sholodge, Inc. 93,750 2,274 82503410
Showboat, Inc. 300,300 5,743 82539010
Sun International (Bophuthatswana) Ltd. (b) 25,000 221 86699J22
Travel Ports of America 260,000 780 89416710
13,844
PUBLISHING - 0.3%
American Educational Products, Inc. (b) 66,000 231 02553T10
Artistic Greetings, Inc. 255,000 1,434 04314210
Clinton Cards PLC 247,000 606 18799292
Ming Pao Enterprise Corp. Ltd. 223,000 199 60399392
Oriental Press Group Ltd. 1,000,000 887 68620099
Perskor Groep Beperk (b) 18,000 115 71499922
Roto Smeets De Boer NV (b) 60,000 1,631 77899A22
Sadlier (William H.), Inc. 10,000 43 78632710
Telegraaf 5,000 425 87940410
WSOY (Werner Soderstrom) Class B (b) 3,900 297 94299J23
5,868
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
MEDIA & LEISURE - CONTINUED
RESTAURANTS - 1.4%
ARK Restaurants Corp. (b)(d) 228,000 $ 2,309 04071210
Benihana National Corp. (d) 230,000 690 08204910
Benihana National Corp. Class A (d) 590,000 959 08204930
Consolidated Products, Inc. (b)(d) 557,755 5,159 20979810
Daka International, Inc. (b)(d) 341,400 4,609 23406820
Ground Round Restaurants, Inc. (b)(d) 610,400 4,425 39942710
M Corp, Inc. (b)(d) 323,500 1,673 55267T10
Ryan's Family Steak Houses, Inc. (b) 83,900 661 78351910
Shoney's, Inc. (b) 125,800 2,893 82503910
Sportscene Restaurants, Inc. Class A 7,000 34 84919K20
TCBY Enterprises, Inc. 636,400 4,057 87224510
Uno Restaurant Corp. (b) 247,300 2,133 91490010
Winton Holdings (Bermuda) Ltd. 1,000,000 340 97699122
29,942
TOTAL MEDIA & LEISURE 72,803
NONDURABLES - 1.8%
AGRICULTURE - 0.2%
Bibby & Sons PLC 400,000 419 08808910
Delta & Pine Land Co. (b) 99,500 1,791 24735710
Kanthal AB B Free shares (b) 180,000 2,468 48899E22
4,678
BEVERAGES - 0.0%
National Beverage Corp. (b) 4,000 86 63501710
FOODS - 0.6%
Cagle's, Inc. Class A 70,625 1,933 12770310
Doskocil Cos., Inc. (b) 290,600 3,124 25848630
GoodMark Foods, Inc. (b) 78,900 1,509 38238710
Hazlewood Foods Ord. 50,000 117 42199292
Herdez SA de CV Class B (b) 768,000 1,096 42799F23
Imperial Holly Corp. 107,700 1,104 45283510
Michael Foods, Inc. 30,800 281 59407410
Raision Magariini OY (b) 50,000 449 75199A22
Raision Tehtaat OY V Free shares (b) 20,000 2,285 75199722
Sonton Food Industry Co. Ltd. 25,000 368 83599692
Stokeley USA, Inc. (b) 50,000 412 86150210
12,678
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - 0.9%
Allou Health & Beauty Corp. Class A (b) 76,600 $ 823 01978210
Aloette Cosmetics, Inc. 63,500 302 02045410
DEP Corp. (b):
Class A 116,000 667 23320220
Class B 60,000 334 23320230
MEM Co. , Inc. (b) 41,700 172 58587110
Oriflame International SA 423,700 2,105 68620299
Paragon Trade Brands, Inc. (b) 259,500 7,947 69912K10
Safeskin Corp. 166,400 2,517 78645410
Tampella AB (b) 25,000 152 87532099
Windmere Corp. (b) 450,800 3,663 97341110
18,682
TOBACCO - 0.1%
WD & HO Wills Holdings Ltd. 853,000 2,481 94299892
TOTAL NONDURABLES 38,605
PRECIOUS METALS - 2.3%
Buffelsfontein Gold Mining Co. Ltd.
ADR 77,100 848 11987120
Ord. 400 4 11987110
Coolgardie Gold 2,100,000 1,013 21699622
Dickenson Mines Ltd. Class A (b) 100,000 498 25307520
Equity Silver Mines Ltd. Class A 1,000,000 782 29491510
Free State Consolidated Gold Mines Ltd. ADR 1,150,000 16,244 35614220
Goldcorp, Inc. Class A (b) 600,000 3,894 38077110
Golden Shamrock Mines, Ltd. (b) 300,000 249 38118110
Hecla Mining Co. (b) 213,800 2,619 42270410
Industrias Penoles A2 (b) 5,950,000 16,863 78899A22
Kinross Gold Corp. (b) 250,000 837 49690210
Kinross Gold Corp. (warrants) (b) 50,000 159 49690292
MK Gold Co. (b) 25,000 178 55305P10
Miramar Mining Corp. 150,000 677 60466E10
Miramar Mining Corp., Series A (warrants) (b) 50,000 113 60466E11
Mount Leyshon Gold Mines (b) 200,000 951 62199192
Richmont Mines, Inc. (b) 382,700 1,267 76547T10
Ross Mining NL 850,000 736 77899722
St. Barbara Mines Ltd. (b) 1,504,400 2,028 79999H22
Wheaton River Minerals 250,000 856 96290210
50,816
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - 2.9%
APPAREL STORES - 0.7%
Baker (J.), Inc. 118,300 $ 2,144 05723210
Chateau Stores of Canada Ltd. Class A (b) 142,900 1,290 16174310
Claire's Stores, Inc. 58,100 1,046 17958410
Dress Barn, Inc. (b) 375,000 4,406 26157010
Goldlion Holdings (b) 500,000 244 38199C92
Joyce Boutique Holdings Ltd. 500,000 111 49499592
Nasan Industrial Co. 10,344 334 63199B92
Odds-N-Ends, Inc. (b) 170,000 154 67574910
One Price Clothing Stores, Inc. (b) 274,600 4,977 68241110
Pantorama Industries, Inc. 75,000 172 69865L10
San Francisco Boutiques, Inc. Class B (sub.-vtg.) (b) 20,700 86 79764C40
14,964
APPLIANCE STORES - 0.1%
Cellstar Corp. (b) 87,000 1,479 15092510
DRUG STORES - 0.1%
Lloyds Chemists PLC (b) 513,725 2,785 54099092
GENERAL MERCHANDISE STORES - 1.1%
Algonquin Mercantile Corp. 52,200 124 01585010
Bradlees, Inc. 51,500 663 10449910
Caldor Corp. (b) 136,600 3,620 12878710
Casey's General Stores, Inc. 235,100 5,878 14752810
Dairy Mart Convenience Stores Inc. Class B (b) 43,000 290 23386010
National Convenience Stores 243,100 4,740 63557050
Service Merchandise Co., Inc. (b) 345,700 2,766 81758710
T&S Stores PLC 650,000 1,664 95699892
Venture Stores, Inc. 105,000 2,284 92327510
Wessel & Vett Class C 20,000 1,888 95299192
Wise Stores, Inc. Class A (sub-vtg.) (b)(d) 150,000 446 97690310
24,363
GROCERY STORES - 0.3%
Delchamps, Inc. 108,100 2,351 24661510
Low (William) Ord. 852,300 2,156 54799010
Riser Foods, Inc. Class A 114,200 899 76761210
5,406
RETAIL & WHOLESALE, MISC - 0.6%
Celebrity, Inc. (b) 54,500 225 15100410
DM Management (b) 58,400 569 23323310
Finish Line, Inc. Class A (d) 257,600 1,932 31792310
Futures Shops Ltd. 20,700 440 36091310
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE, MISC - CONTINUED
Little Switzerland, Inc. (b) 23,600 $ 171 53752810
Luria (L.) & Son, Inc. (b) 220,000 3,025 55048410
Partridge Fine Arts PLC 350,000 564 70299493
Reeds Jewelers, Inc. (b) 75,500 1,000 75834110
Sound Advice, Inc. (b)(d) 370,900 2,272 83606610
Zale Corp. (b) 247,500 2,289 98885810
12,487
TRADING COMPANIES - 0.0%
Li & Fung Ltd. 1,254,000 942 51899592
TOTAL RETAIL & WHOLESALE 62,426
SERVICES - 2.8%
ADVERTISING - 0.1%
American List Corp. 31,000 500 02725810
CMG Information Services 100,000 800 12575010
1,300
LEASING & RENTAL - 0.2%
Agency Rent-A-Car, Inc. (b) 125,000 1,625 00845010
COMCOA, Inc. (b) 70,400 1,021 20031410
Gowrings PLC 175,000 192 38699192
2,838
PRINTING - 0.9%
Cadmus Communications Corp. (d) 319,500 4,473 12758710
Chung Tai Printing Holdings Ltd. (b) 400,000 34 17499B92
City Investing Co. Liquidating Trust (b) 25,000 16 17790010
Devon Group, Inc.(d) 670,600 13,580 25180110
Paris Business Forms, Inc. (b)(d) 230,000 431 69955610
Pubco Corporation (b)(d) 150,000 825 74437860
Skybox International, Inc. 125,000 1,125 83091410
20,484
SERVICES - 1.6%
Adam & Harvey Group PLC Ord. 75,000 407 00599092
Adia Services, Inc. 83,300 2,041 00687410
BEI Holdings Ltd. (d) 1,043,000 7,431 05538310
Borg Warner Securities Corp. (b) 80,300 1,757 09973310
Children's Discovery Center Class A 100,000 1,250 16875720
Concord Career Colleges, Inc. 130,000 13 20651H10
Firstservices Co. (warrants) (b) 100,000 545 33761N92
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
RETAIL & WHOLESALE - CONTINUED
SERVICES - CONTINUED
Goldfarb Class A (b) 50,000 $ 696 38137C10
Harlyn Products, Inc. (b) 117,175 557 41308010
Health Care Services Group, Inc. (b) 119,300 1,327 42190610
Interim Services 4,500 113 45868P10
Lawyers Title Corp. 140,000 2,520 52102910
Mace Security International 20,000 117 55433510
Marietta Corp. (b) 149,000 1,248 56763410
Oroamerica, Inc. (b) 39,200 549 68702710
Plasti Line, Inc. (b) 107,600 1,022 72754010
Programming & Systems, Inc. (d) 313,300 3 74320910
RCO Holdings PLC 50,000 301 75199592
Right Management Consultants, Inc. (b)(d) 225,000 3,937 76657310
Seattle FilmWorks, Inc. (b)(d) 201,100 5,581 81257210
Service Corp. International 3,500 69 81756T10
Supercuts, Inc. (b) 54,200 908 86805710
TRO Learning, Inc. (b) 283,100 2,123 87263R10
Thomas Group (b) 40,000 690 88440210
Uniforce Temporary Personnel, Inc. 82,000 656 90472410
35,861
TOTAL SERVICES 60,483
TECHNOLOGY - 11.3%
COMMUNICATIONS EQUIPMENT - 1.0%
CMC Industries 50,000 500 12570810
Circuit Systems, Inc. (b)(d) 522,500 3,266 17291710
Digital Link Corp. 3,000 42
Digital Systems International, Inc. (b)(d) 658,900 2,471 25391210
Keptel, Inc. (b)(d) 416,500 5,310 49205610
MB Communications, Inc. 184,400 3,504 55262M10
Microlog Corp. (b)(d) 387,100 919 59507910
Napco Security Systems, Inc. (b)(d) 229,500 1,033 63040210
Network General Corp. (b) 168,400 3,347 64121010
VMX, Inc. (b) 104,400 522 91827610
Zoom Telephonics, Inc. 22,000 286 98976E10
21,200
COMPUTER SERVICES & SOFTWARE - 4.0%
ACT Group PLC 98,076 261 00499592
Adobe Systems, Inc. 149,900 4,534 00724F10
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE - CONTINUED
AutoInfo, Inc. (b)(d) 384,000 $ 1,656 05277710
Barra, Inc. (b) 16,000 100 06831310
Brandon Systems Corp. 67,100 872 10530310
Broadway & Seymour, Inc. (b) 93,400 1,004 11143310
CompuCom Systems, Inc. (b) 350,000 2,319 20478010
Cadence Design Systems, Inc. (b) 294,107 3,235 12738710
Computer Data Systems, Inc. (d) 541,200 10,824 20501710
Computer Horizons Corp. (b) 126,550 1,724 20590810
Computer People Group PLC Ord. 200,000 398 20499592
ENEA Data AB B Free shares (b) 9,900 274 29299M22
Electronic Information Systems, Inc (b) 110,000 1,568 28573810
Enator Information System AB B Free shares 181,800 981 29299H22
Getronics NV 249,680 6,297 37499092
Government Technology Services, Inc. (b)(d) 585,500 8,490 38375010
Group 1 Software, Inc. (b) 128,100 1,409 39943310
Hartco Enterprises, Inc. 386,200 1,816 41617L10
Inacom Corp. (b) 465,900 8,736 45323G10
Integrated Systems, Inc. (b) 125,700 1,351 45812M10
Intera Information Technologies Corp. Class A (b) 125,000 647 45837K10
Intermetrics, Inc. 128,500 691 45881610
MacNeal-Schwendler Corp. 105,500 1,371 55480610
PDA Engineering (b) 93,600 480 69326810
Pizzaexpress PLC 100,000 197 72599692
SPSS, Inc. 15,000 159 78462K10
SafeCard Services, Inc. 573,700 10,685 78642110
Skrivervik Data (b) 73,000 1,156 83099B22
Software Publishing Corp. (b) 218,700 1,668 83403210
Software Spectrum, Inc. (b) 67,300 1,153 83396010
Sterling Software, Inc. (b) 184,900 6,240 85954710
Systems Software Associates, Inc. 102,500 1,461 87183910
Terrano Corp. (b) 35,000 92 88090310
Tietotehdas Oy B 690 119 93999892
Triconex Corp. (b) 169,070 3,001 89611610
Trinzic Corp. 40,000 235 89668610
87,204
COMPUTERS & OFFICE EQUIPMENT - 2.9%
Amdahl Corp. 265,600 1,892 02390510
Black Arrow Group 1,300,000 744 09199292
CSP, Inc. (b)(d) 250,800 2,383 12638910
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT - CONTINUED
Computer Automation, Inc. (b)(d) 100,000 $ 1 20490110
Cray Research, Inc. (b) 146,000 4,581 22522410
Dataflex Corp. (b)(d) 309,000 2,124 23790510
Future Now, Inc. (d) 618,500 8,504 36091010
IPL Systems, Inc. Class A (b) 10,500 97 44981310
Interface Systems, Inc. (b)(d) 263,500 1,120 45866710
Interphase Corp. (b)(d) 441,300 2,096 46059310
Micronics Computers, Inc. (b)(d) 954,600 4,773 59512710
Miltope Group, Inc. (b) 29,400 136 60219110
NAI Technologies, Inc. (b) 262,806 1,544 62872H10
Nematron Corp. (b)(d) 99,500 149 64044110
P&P PLC 800,000 1,036 69699192
PenTech International, Inc. (b) 50,000 294 70963510
Printronix, Inc. (b)(d) 237,000 1,807 74257810
Quantum Corp. (b) 363,300 5,858 74790610
Rexon, Inc. (b)(d) 640,200 3,681 76190110
Robec, Inc. (b)(d) 269,000 706 77028810
SBE, Inc. (b)(d) 161,100 1,410 78387320
Scribona AB B Free shares (b) 100,000 521 81199B92
Seagate Technology (b) 650,000 15,681 81180410
Semi-Tech Microelectronics 500,000 958 81699192
Smith Corona Corporation 37,400 215 83185810
Southern Electronics Corp. (b) 12,600 157 84281110
Supermac Technology, Inc. 62,500 633 86843310
Syquest Technology, Inc. (b) 54,500 518 87166010
63,619
ELECTRONIC INSTRUMENTS - 0.7%
ASECO Corp. (b) 36,000 234 04365910
Aetrium, Inc. 33,600 302 00817R10
BTU International, Inc. (b)(d) 542,200 1,254 05603210
Cohu, Inc. (d) 338,100 7,480 19257610
Credence Systems Corp. (b) 20,000 360 22530210
DSP Technology, Inc. (b)(d) 168,600 653 23332110
Electro Scientific Industries, Inc. (b) 92,400 1,236 28522910
Environmental Tectonics Corp. (b) 40,800 112 29409210
Megatest Corp. 210,100 3,257 58495810
Milltronics Ltd. 25,000 268 60138K10
Sym-Tek Systems, Inc. (b) 29,500 100 87150210
15,256
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - 2.7%
Advance Circuits, Inc. (b)(d) 436,100 $ 7,305 00738310
Advanced Micro Devices, Inc. (b) 153,100 3,139 00790310
Allgon AB B Free shares 60,600 1,731 01899822
Audiovox Corp. Class A (b) 222,300 3,473 05075710
Bel Fuse, Inc. (b)(d) 378,400 3,216 07734710
Bell Microproducts, Inc. (b) 52,500 459 07813710
Benefon Oy (b) 1,000 245 08199822
Bergman & Beving AB B Free shares 37,500 719 08399622
Dallas Semiconductor Corp. (b) 351,300 6,411 23520410
Electroglas, Inc. (b) 40,000 1,050 28532410
Exar Corp. (b)(d) 551,300 13,645 30064510
Finvest B 325,000 507 31799G22
Lattice Semiconductor Corp. (b) 203,900 3,262 51841510
LSI Logic Corp. (b) 228,300 4,252 50216110
LSI Logic Corp. of Canada (b) 50,000 193 50190710
Rogers Corp. (b) 56,500 1,667 77513310
Samsung Electronics Ltd GDR. (b) 8,849 378 79605060
Sterling Electronics Corp. (b) 295,800 3,402 85928110
Techtronic Industries Co. Ord. 500,000 104 94799592
Tencor Instruments 103,500 1,384 88032310
Varitronix International Ltd. 1,000,000 1,230 95099792
Video Display Corp. (b)(d) 229,500 689 92655510
58,461
TOTAL TECHNOLOGY 245,740
TRANSPORTATION - 2.2%
AIR TRANSPORTATION - 0.4%
CHC Helicopter Corp. A 110,000 972 12541C20
Great Lakes Aviation (b) 25,000 325 39054K10
Helikopter Services 443,700 6,909 42499192
8,206
RAILROADS - 0.2%
Algoma Central Corp. (b) 40,200 439 01564410
Chicago & North Western Holdings Corp. (b) 118,000 3,156 16715510
Portec, Inc. (b) 83,900 1,017 73620210
4,612
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
TRANSPORTATION - CONTINUED
SHIPPING - 0.5%
Awilco Shipping B Free shares 50,000 $ 463 05299892
ETAC Sales Ltd. (b) 215,000 550 29760C10
Global Ocean Carriers Ltd. (b)(d) 268,500 1,158 37935710
Maritrans, Inc. (b) 525,800 2,826 57036310
Sea Containers Ltd. 201,300 3,523 81137110
Sea Containers Ltd., Class A 176,200 2,929 81137170
11,449
TRUCKING & FREIGHT - 1.1%
Anuhco, Inc. 301,000 1,656 03733710
Arkansas Best Corp. 483,600 7,133 04079010
Builders Transport, Inc. (b) 82,000 1,404 12008410
Celadon Group, Inc. (b) 6,000 100 15083810
Cannon Express, Inc.:
Class A (b) 136,700 1,999 13769410
Class B (b)(d) 165,100 2,229 13769420
Intertrans Corp. 475,100 6,473 46113710
Landstar System, Inc. 46,000 960 51509810
MNX, Inc. (b) 19,400 262 55311410
Marten Transport Ltd. (b) 73,400 1,358 57307510
OTR Express, Inc. (b) 7,500 51 67106210
23,625
TOTAL TRANSPORTATION 47,892
UTILITIES - 6.2%
CELLULAR - 0.0%
Netas SA Class B (b) 200,000 366 64199522
ELECTRIC UTILITY - 2.5%
Northern Electricity PLC 200,000 2,280 68499B92
Northern Ireland Electric PLC (b) 2,000,000 8,252 66599B22
Public Service Co. of New Mexico (b) 136,200 1,804 74449910
Seeboard PLC 4,500,000 27,783 81570594
South Western Electricity PLC 1,475,000 15,659 84066E93
55,778
GAS - 0.5%
ATCO Ltd. 115,000 1,395 04678940
Allegheny & Western Energy Corp. (d) 558,300 3,769 01722710
Aquila Gas Pipeline Corp. (b) 147,700 1,939 03839B10
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
UTILITIES - CONTINUED
GAS - CONTINUED
Edisto Resources Corp. (b):
(warrants) 116,800 $ 350 28106711
(New) 358,600 3,138 28106730
10,591
TELEPHONE SERVICES - 0.2%
ABL CDA, Inc. 50,000 273 00095110
Davel Communications Group, Inc. (b) 60,400 936 23833810
Pacific Telesis Group 25,000 1,447 69489010
Telebras PN (Pfd. Reg.) 19,800,000 941 95499792
TeleDanmark 19,740 587 93599692
4,184
WATER - 3.0%
Northumbrian Water Group PLC Ord. 2,584,146 28,446 67299295
Welsh Water PLC Ord. 3,350,000 35,917 94999395
64,363
TOTAL UTILITIES 135,282
TOTAL COMMON STOCKS
(Cost $1,513,314) 1,900,064
PREFERRED STOCKS - 0.7%
CONVERTIBLE PREFERRED STOCKS - 0.5%
BASIC INDUSTRIES - 0.1%
METALS & MINING - 0.1%
Alumax, Inc., Series A, $4.00 13,333 1,600 02219720
CONGLOMERATES - 0.1%
Trafalgar House, 6% 1,333,332 2,763 89270797
ENERGY - 0.1%
OILS & GAS - 0.1%
Gerrity Oil & Gas Corp. $1.50 (f) 10,000 189 37423020
Patrick Petroleum Co. (b) 80,200 792 70334730
981
PREFERRED STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
(000S)
CONVERTIBLE PREFERRED STOCKS - CONTINUED
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
INDUSTRIAL MACHINERY & EQUIPMENT - 0.1%
AGCO Corp., $1.625 41,000 $ 2,152 00108420
MEDIA & LEISURE - 0.0%
LODGING & GAMING - 0.0%
Queens Moat Houses PLC 7 1/2% (b) 850,000 270 74750093
SERVICES - 0.1%
SERVICES - 0.1%
Automated Security Holdings 6% (b) 2,063,000 2,330 05299592
TOTAL CONVERTIBLE PREFERRED STOCKS 10,096
NONCONVERTIBLE PREFERRED STOCKS - 0.2%
CONSTRUCTION & REAL ESTATE - 0.0%
CONSTRUCTION - 0.0%
Byucksan Engineering & Construction (b) 3,000 34 12499123
FINANCE - 0.1%
CREDIT & OTHER FINANCE - 0.1%
Trilon Financial Corp.:
Class 1, Series A, floating rate 84,100 807 89590330
Class 2, Series 3, floating rate 75,000 677 89590350
1,484
MEDIA & LEISURE - 0.0%
RESTAURANTS - 0.0%
Sportscene Restaurants, Inc. $0.18 2,075 3 84919K40
TECHNOLOGY - 0.1%
COMMUNICATIONS EQUIPMENT - 0.1%
Nokia 47,600 2,737 65599910
TOTAL NONCONVERTIBLE PREFERRED STOCKS 4,258
TOTAL PREFERRED STOCKS
(Cost $11,989) 14,354
CORPORATE BONDS - 0.4%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A) (000S) (000S)
CONVERTIBLE BONDS - 0.4%
AEROSPACE & DEFENSE - 0.0%
DEFENSE ELECTRONICS - 0.0%
ARX, Inc. 7%, 9/15/02 - $ 500 $ 935 001909AB
CONGLOMERATES - 0.1%
Brascan Ltd. 7% 10/15/02 - CAD 3,000 2,252 105502AA
Brierley Investments Ltd. 9%, 6/30/98 - NZD 625 472 1090149A
2,724
ENERGY - 0.0%
OIL & GAS - 0.0%
Swift Energy Co. 6 1/2%, 6/30/03 - 900 936 870738AA
MEDIA & LEISURE - 0.1%
BROADCASTING - 0.1%
Westwood One, Inc. 6 3/4%, 10/15/11 Caa 1,477 1,160 961815AA
RESTAURANTS - 0.0%
Consolidated Products, Inc. 10%, 11/30/02 - 135 371 209798AA
TOTAL MEDIA & LEISURE 1,531
UTILITIES - 0.2%
GAS - 0.2%
Hong Kong Land Holdings Ltd. Euro 4%, 2/23/01 - 3,000 3,150 4385819A
TOTAL CONVERTIBLE BONDS 9,276
NONCONVERTIBLE BONDS - 0.0%
BASIC INDUSTRIES - 0.0%
CHEMICALS & PLASTICS - 0.0%
Interpak Holdings, Inc. 12%, 12/31/96 - 131 105 460584AA
TOTAL CORPORATE BONDS
(Cost $7,671) 9,381
U.S. TREASURY OBLIGATIONS - 0.4%
MOODY'S RATINGS (C) PRINCIPAL VALUE (NOTE 1)
AMOUNT (A) (000S) (000S)
7%, 5/15/94 (Cost $8,045) Aaa $ 7,750 $ 7,834 912827A7
REPURCHASE AGREEMENTS - 11.0%
MATURITY
AMOUNT
(000S)
Investments in repurchase agreements
(U.S. Treasury obligations), in a
joint trading account at 3.19%
dated 1/31/94 due 2/1/94 $ 239,516 $ 239,495
TOTAL INVESTMENT IN SECURITIES - 100%
(Cost $1,780,514) $ 2,171,128
FUTURES CONTRACTS
AMOUNTS IN THOUSANDS EXPIRATION UNDERLYING FACE UNREALIZED
DATE AMOUNT AT VALUE GAIN/(LOSS)
PURCHASED
21/ S & P 500 Index Contracts March, 1994 $ 5,058 $ 40
THE VALUE OF FUTURES CONTRACTS PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES -- 0.2%
FORWARD FOREIGN CURRENCY CONTRACTS
AMOUNTS IN THOUSANDS SETTLEMENT UNREALIZED
DATE(S) VALUE GAIN/(LOSS)
CONTRACTS TO SELL
33,329 GBP 3/7/94 $ 50,080 $ (887)
(Receivable amount $49,193)
THE VALUE OF CONTRACTS TO SELL AS A PERCENTAGE OF TOTAL INVESTMENT IN
SECURITIES - 2.3%
CURRENCY TYPE ABBREVIATIONS
CAD - Canadian dollar
GBP - British Pound
NZD - New Zealand dollar
LEGEND
(a) Principal amount is stated in United States dollars unless otherwise
noted.
(b) Non-income producing
(c) Standard & Poor's Corporation credit ratings are used in the
absence of a rating by Moody's Investors Service, Inc.
(d) Affiliated company (see Note 5 of Notes to Financial Statements).
(e) Restricted securities - Investment in securities not registered under
the Securities Act of 1933 (see Note 2 of Notes to Financial Statements).
Additional information on the holding is as follows:
ACQUISITION ACQUISITION
SECURITY DATE COST
Belden and Blake
Corp. 12/8/93 $788,000
(f) 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 amounte to $8,845,000 or 0.4% of net
assets.
(g) Security purchased on a delayed delivery basis (see Note 2 of Notes to
Financial Statements).
(h) Share amount in thousands.
OTHER INFORMATION
Distribution of investments by country, as a percentage of total value of
investment in securities, is as follows:
United States 73.3%
United Kingdom 11.0
Canada 3.9
South Africa 2.2
Finland 1.4
Sweden 1.1
Others (individually less than 1%) 7.1
TOTAL 100.0%
INCOME TAX INFORMATION
At January 31, 1994, the aggregate cost of investment securities for income
tax purposes was $1,780,655,000. Net unrealized appreciation aggregated
$390,473,000, of which $396,207,000 related to appreciated investment
securities and $5,734,000 related to depreciated investment securities.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNTS) JANUARY 31, 1994 (UNAUDITED)
ASSETS
Investment in securities, at value (including repurchase $ 2,171,128
agreements of $239,495) (cost $1,780,514) (Notes 1 and
2) - See accompanying schedule
Short foreign currency contracts (Note 2) $ (50,080)
Contracts held, at value
Receivable for contracts held 49,193 (887)
Cash 6
Receivable for investments sold 38,944
Receivable for fund shares sold 10,236
Dividends receivable 2,927
Interest receivable 208
Redemption fees receivable (Note 1) 3
Receivable for daily variation on futures contracts 32
Other receivables 26
TOTAL ASSETS 2,222,623
LIABILITIES
Payable for investments purchased
Regular delivery 44,247
Delayed delivery (Note 2) 1,234
Payable for fund shares redeemed 5,095
Accrued management fee 1,386
Other payables and accrued expenses 914
TOTAL LIABILITIES 52,876
NET ASSETS $ 2,169,747
Net Assets consist of (Note 1):
Paid in capital $ 1,682,658
Distributions in excess of net investment income (2,257)
Accumulated undistributed net realized gain (loss) on 99,579
investments
Net unrealized appreciation (depreciation) on:
Investment securities 390,614
Foreign currency contracts (887)
Futures contracts 40
NET ASSETS, for 119,207 shares outstanding $ 2,169,747
NET ASSET VALUE and redemption price per share $18.20
($2,169,747 (divided by) 119,207 shares)
Maximum offering price per share (100/97 of $18.20) $18.76
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS ENDED JANUARY 31, 1994 (UNAUDITED)
INVESTMENT INCOME $ 11,368
Dividends (including $211 received from affiliated issuers)
(Note 5)
Interest 3,327
TOTAL INCOME 14,695
EXPENSES
Management fee (Note 4) $ 6,688
Basic fee
Performance adjustment 1,129
Transfer agent fees 2,965
Fees (Note 4)
Redemption fee (13)
Accounting fees and expenses (Note 4) 380
Non-interested trustees' compensation 6
Custodian fees and expenses 241
Registration fees 39
Audit 23
Legal 11
Miscellaneous 21
Total expenses before reductions 11,490
Expense reductions (Note 6) (69) 11,421
NET INVESTMENT INCOME 3,274
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS
(NOTES 1 AND 3)
Net realized gain (loss) on:
Investment securities (including realized gain (loss) of 170,827
$17,747 on sales of investments in affiliated issuers)
Foreign currency contracts 583 171,410
Change in net unrealized appreciation (depreciation) on:
Investment securities 155,248
Foreign currency contracts (887)
Futures contracts 40 154,401
NET GAIN (LOSS) 325,811
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM $ 329,085
OPERATIONS
</TABLE>
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
<S> <C> <C>
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED
ENDED JULY 31,
JANUARY 31, 1994 1993
(UNAUDITED)
INCREASE (DECREASE) IN NET ASSETS
Operations $ 3,274 $ 20,421
Net investment income
Net realized gain (loss) on investments 171,410 169,509
Change in net unrealized appreciation (depreciation) 154,401 173,681
on
investments
NET INCREASE (DECREASE) IN NET ASSETS RESULTING 329,085 363,611
FROM OPERATIONS
Distributions to shareholders: (18,315) (8,044)
From net investment income
From net realized gain (185,587) (52,753)
TOTAL DISTRIBUTIONS (203,902) (60,797)
Share transactions 208,825 1,992,575
Net proceeds from sales of shares
Reinvestment of distributions from: 17,881 7,869
Net investment income
Net realized gain 182,428 52,064
Cost of shares redeemed (481,019) (1,167,948)
Redemption fees (Note 1) 98 743
Net increase (decrease) in net assets resulting from (71,787) 885,303
share transactions
TOTAL INCREASE (DECREASE) IN NET ASSETS 53,396 1,188,117
NET ASSETS
Beginning of period 2,116,351 928,234
End of period (including an under (over) distribution of $ 2,169,747 $ 2,116,351
($2,257) and $18,918, respectively)
OTHER INFORMATION
Shares
Sold 12,041 127,402
Issued in reinvestment of distributions from: 1,068 528
Net investment income
Net realized gain 10,900 3,524
Redeemed (27,944) (70,445)
Net increase (decrease) (3,935) 61,009
</TABLE>
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
SIX MONTHS YEARS ENDED JULY 31, DECEMBER 27,
ENDED 1989
JANUARY 31, (COMMENCEM
1994 ENT OF
OPERATIONS) TO
JULY 31,
(UNAUDITED) 1993 1992 1991 1990
SELECTED PER-SHARE DATA
Net asset value, beginning $ 17.19 $ 14.94 $ 12.63 $ 10.74 $ 10.00
of period
Income from Investment
Operations
Net investment income .03# .15 .11 .17** .12
Net realized and unreal- 2.76 2.88 2.93 2.09 .60
ized gain (loss) on
investments
Total from investment 2.79 3.03 3.04 2.26 .72
operations
Less Distributions
From net investment (.16) (.10) (.15) (.14) -
income
From net realized gain (1.62) (.69) (.60) (.26) -
Total distributions (1.78) (.79) (.75) (.40) -
Redemption fees added to .00 .01 .02 .03 .02
paid in capital
Net asset value, end of $ 18.20 $ 17.19 $ 14.94 $ 12.63 $ 10.74
period
TOTAL RETURN (dagger) (double dagger) 17.42% 21.32% 25.55% 22.72% 7.40%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 2,170 $ 2,116 $ 928 $ 256 $ 116
(in millions)
Ratio of expenses to 1.11%* 1.12% 1.20% 1.36% 1.92%*
average net assets
Ratio of expenses to 1.12%* 1.12% 1.20% 1.36% 1.92%*
average net assets
before expense
reductions
Ratio of net investment .32%* 1.00% 1.27% 2.14% 3.77%*
income to average net
assets
Portfolio turnover rate 50%* 47% 82% 84% 126%*
</TABLE>
* ANNUALIZED
** NET INVESTMENT INCOME PER SHARE CONTAINS A SPECIAL DIVIDEND WHICH
AMOUNTED TO $.02 PER SHARE.
(dagger) TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR
PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
(double dagger) THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN. (SEE NOTE 6 OF NOTES TO
FINANCIAL STATEMENTS.)
# NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
NOTES TO FINANCIAL STATEMENTS
For the period ended January 31, 1994 (Unaudited)
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity Low-Priced Stock Fund (the fund) is a fund of Fidelity Puritan
Trust (the trust) and is authorized to issue an unlimited number of shares.
The trust is registered under the Investment Company Act of 1940, as
amended (the 1940 Act), as an open-end management investment company
organized as a Massachusetts business trust. The following summarizes the
significant accounting policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are readily
available are valued at the last sale price, or if no sale price, at the
closing bid price. Securities (including restricted securities) for which
exchange quotations are not readily available (and in certain cases debt
securities which trade on an exchange), are valued primarily using
dealer-supplied valuations or at their fair value as determined in good
faith under consistently applied procedures under the general supervision
of the Board of Trustees. Short-term securities maturing within sixty days
are valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities 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 practical to identify the portion of each amount shown in the
fund's Statement of Operations under the caption "Realized and Unrealized
Gain (Loss) on Investments" that arises from changes in foreign currency
exchange rates. Investment income includes net realized and unrealized
currency gains and losses recognized between accrual and payment dates.
INCOME TAXES. As a qualified regulated investment company under Subchapter
M of the Internal Revenue Code, the fund is not subject to income taxes to
the extent that it distributes all of its taxable income for its fiscal
year. The schedule of investments includes information regarding income
taxes under the caption "Income Tax Information."
INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date,
except certain dividends from foreign securities where the ex-dividend date
may have passed, are recorded as soon as the fund is informed of the
ex-dividend date. Interest income is accrued as earned. Dividend and
interest income is recorded net of foreign taxes where recovery of such
taxes is not assured.
EXPENSES. Most expenses of the trust can be directly attributed to a fund.
Expenses which cannot be directly attributed are apportioned between the
funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
1. SIGNIFICANT ACCOUNTING
POLICIES - CONTINUED
DISTRIBUTIONS TO SHAREHOLDERS - CONTINUED
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
foreign currency transactions and losses deferred due to wash sales. The
fund also utilized earnings and profits distributed to shareholders on
redemption of shares as a part of the dividends paid deduction for income
tax purposes. Permanent book and tax basis differences relating to
shareholder distributions will result in reclassifications to paid in
capital.
REDEMPTION FEES. Shares held in the fund less than 90 days are subject to a
redemption fee equal to 1.50% of the proceeds of the redeemed shares. A
portion of the fee is accounted for as a reduction of transfer agent
expenses. This portion of the redemption fee is used to offset the
transaction costs and other expenses that short-term trading imposes on the
fund and its shareholders. The remainder of the redemption fee is accounted
for as an addition to paid in capital.
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 August 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 July 31, 1993 have been reclassified to reflect
an increase in paid in capital of $8,242,000, a decrease in undistributed
net investment income of $1,921,000 and a decrease in accumulated net
realized gain on investments of $6,321,000.
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 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.
2. OPERATING POLICIES - CONTINUED
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.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell securities on
a when-issued or forward commitment basis. Payment and delivery may take
place a month or more after the date of the transaction. The price of the
underlying securities and the date when the securities will be delivered
and paid for are fixed at the time the transaction is negotiated. The fund
identifies securities as segregated in its custodial records with a value
at least equal to the amount of the purchase commitment.
FUTURES CONTRACTS AND OPTIONS. The fund may invest in futures contracts and
write options. These investments involve, to varying degrees, elements of
market risk and risks in excess of the amount recognized in the Statement
of Assets and Liabilities. The face or contract amounts reflect the extent
of the involvement the fund has in the particular classes of instruments.
Risks may be caused by an imperfect correlation between movements in the
price of the instruments and the price of the underlying securities and
interest rates. Risks also may arise if there is an illiquid secondary
market for the instruments, or due to the inability of counterparties to
perform.
Futures contracts are valued at the settlement price established each day
by the board of trade or exchange on which they are traded. Options traded
on an exchange are valued using the last sale price or, in the absence of a
sale, the last offering price. Options traded over-the-counter are valued
using dealer-supplied valuations.
RESTRICTED SECURITIES. The fund is permitted to invest in privately placed
restricted securities. These securities may be resold in transactions
exempt from registration or to the public if the securities are registered.
Disposal of these securities may involve time-
consuming negotiations and expense, and prompt sale at an acceptable price
may be difficult. At the end of the period, restricted securities
(excluding 144A issues) amounted to $1,339,000 or 0.1% of net assets.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $476,632,000 and $701,857,000 respectively.
4. FEES AND OTHER
TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly
basic fee that is calculated on the basis of a group fee rate plus a fixed
individual fund fee rate applied to the average net assets of the fund. The
group fee rate is the weighted average of a series of rates 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 .35%.
The basic fee is subject to a performance adjustment (up to a maximum of +
or - .20%) based on the fund's investment performance as compared to the
appropriate index over a specified period of time. For the period, the
management fee was equivalent to an annualized rate of .76% of average net
assets after the performance adjustment.
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.
SALES LOAD. For the period, Fidelity Distributors Corporation, an affiliate
of FMR and the general distributor of the fund, received sales charges of
$1,186,000 on sales of shares of the fund.
TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the
fund's transfer, dividend disbursing and shareholder servicing agent. FSC
receives fees based on the type, size, number of accounts and the number of
transactions made by shareholders. FSC pays for typesetting, printing and
mailing of all shareholder reports, except proxy statements.
ACCOUNTING FEE. FSC maintains the fund's accounting records. The fee is
based on the level of average net assets for the month plus out-of-pocket
expenses.
BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio
transactions with brokerage firms which are affiliates of FMR. The
commissions paid to these affiliated firms were $176,000 for the period.
5. TRANSACTIONS WITH
AFFILIATED COMPANIES.
An affiliated company is a company in which the fund has ownership of at
least 5% of the voting securities. Transactions with companies which are or
were affiliates are as follows:
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES
AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
AEP Industries, Inc. $ 529 $ 41 $ - $ 6,351
AMRE, Inc. - 2,924 - 4,765
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
ARI Holdings, Inc.* $ 69 $ - $ - $ 620
ARK Restaurants Corp.* - - - 2,309
Abington Savings Bank - Massachusetts* 153 - - 1,670
Aceto Corp. - 748 - 5,670
Advance Circuits, Inc.* 164 476 - 7,305
Alamco, Inc.* 39 - - 1,389
Allegheny & Western Energy Corp. - 244 - 3,769
American Consumers Products, Inc.* - 47 - 566
American Indemnity Financial Corp. 744 - - 2,716
Andover BanCorp, Inc. (Del.) - 314 12 1,821
Autoinfo, Inc.* 78 - - 1,656
Aztec Manufacturing Co. 617 - - 2,609
BEI Holdings Ltd. 1,600 - - 7,431
BFS Bankorp, Inc. - 444 - 1,493
BMC Industries, Inc.* - - - 8,273
BTU International, Inc.* - - - 1,254
Baldwin Piano and Organ Co. - 403 - 4,663
Banyan Short Term Income Trust (SBI)* 443 - - 939
Banyan Strategic Land Trust (SBI) 970 - 99 4,463
Bel Fuse, Inc.* - 255 - 3,216
Belden and Blake Corp.* 1,099 - - 5,540
Benihana National Corp. Class A - - - 959
Benihana National Corp. - 55 - 690
Braintree Savings Bank (Mass.) - 350 6 1,421
Bush Industries, Inc. Class A - 1,070 - -
CB BanCorp, Inc. 186 - - 1,010
CPAC, Inc. - - - 2,037
CSP, Inc.* - 93 - 2,383
Cadmus Communications Corp. 35 - - 4,473
Calumet BanCorp, Inc. 314 304 - 5,159
Cannon Express, Inc. Class B* 330 - - 2,229
Castle Energy Corp.* 4,191 - - 9,581
Cavco Industries, Inc.* - 34 - 3,621
Cenit BanCorp, Inc. - - 11 2,812
Champion Parts, Inc.* - - - 1,586
Chempower, Inc.* - - - 2,492
Circle Financial Corp. - - - 1,700
Citadel Holding Corp.* 365 - - 2,600
Circuit Systems, Inc.* 427 - - 3,266
Cliffs Drilling Co.* 416 - - 3,980
Cohu, Inc. 849 359 - 7,480
Columbus Energy Corp.* 632 - - 2,148
Computer Automation, Inc.* - - - 1
Computer Data Systems, Inc. - - - 10,824
Concord Fabrics, Inc. Class A* - - - 1,935
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Consolidated Products, Inc.* $ - $ 53 $ - $ 5,159
ConVest Energy Corp.* - - - 3,567
DS Banco, Inc. - 421 - -
DMI Furniture, Inc.* - - - 839
DSP Technology, Inc.* - - - 653
Daka International, Inc.* 374 - - 4,609
Dataflex Corp.* 739 47 - 2,124
Datron Systems, Inc. (Calif.)* 1,082 - - 2,472
Datametrics Corp. - 89 - -
Devon Group, Inc. 75 41 - 13,580
Digital Systems International, Inc.* - 757 - 2,471
Drew Industries, Inc.* - 137 - 4,156
Durakon Industries, Inc. - 638 - -
Eagle Financial Corp. - 311 - -
Eastex Energy, Inc. - - - -
EDAC Technologies Corp. - - - 512
ENEX Resources Corp.* - - - 1,227
Elco Industries, Inc. 39 - - 6,279
Exar Corp.* 234 64 - 13,645
FFE Financial Corp. - - - 345
FSI International, Inc.* 975 99 - 6,869
Federal Savings Bank - New Britain (CT) - - - 1,084
Federal Screws Works 140 - - 1,601
Financial Security Corp.* - 895 - 1,624
Finish Line, Inc. Class A 625 - - 1,932
First Federal Savings Bank of
Puerto Rico* 31 440 - 7,759
First Southeast Financial Corp. 1,648 261 - 4,029
First Federal Savings & Loan (Conn.) - 50 5 -
First Financial Corp. of
Western Maryland - - - -
Firstrock BanCorp, Inc. - - - -
First State Financial Services, Inc. - 146 - 1,855
Future Now, Inc. - 124 - 8,504
GBC BanCorp California 88 - - 6,965
G-III Apparel Group Ltd. 70 797 - 1,916
Giant Industries, Inc.* 2,274 825 - 11,740
Global Ocean Carriers Ltd.* 12 24 - 1,158
Government Technology Services, Inc.* - - - 8,490
Ground Round Restautants, Inc.* - 78 - 4,425
HF Financial Corp. 67 431 14 2,617
HPSC, Inc. - 16 - -
Haven BanCorp, Inc.* 187 - - 3,442
Huffman Koos, Inc.* - 76 - 2,350
Inacom Corp. - 2,723 - -
Independence Federal Savings Bank 485 - - 1,016
Independent Bank Corp. (Mass.) - 250 - -
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Interface Systems, Inc.* $ - $ 221 $ - $ 1,120
International Jenson, Inc. - 258 - 4,128
International Recovery Corp.* 1,481 - - 5,175
Interphase Corp.* - - - 2,096
Intertrans Corp. - 53 - -
K-tron International, Inc. - 48 - -
Kankakee BanCorp, Inc. - 743 - -
Keptel, Inc.* - 128 - 5,310
Kinark Corp.* - - - 1,350
Koss Corp. * 1,334 191 - 3,439
LF BanCorp, Inc.* 38 - - 796
Libbey, Inc.* - 975 - 15,075
Lincoln Foodservice Products, Inc.* - - - 3,008
Lund International Holdings, Inc.* - 94 - 7,755
M Corp., Inc.* 751 - - 1,673
MFRI, Inc. 419 21 - 2,371
MSB BanCorp, Inc. - 473 - -
Marietta Corp. - 536 - -
Marion Capital Holdings, Inc. - 374 - 2,654
Mark Controls Corp. - 1,650 - -
Maryland Federal BanCorp, Inc. - - - 5,965
Medalist Industries, Inc.* 329 - - 5,431
Merchants Group, Inc.* - - - 5,097
Mercury Air Group* 232 - - 727
Metro Bancshares, Inc. - 167 - 6,934
Microlog Corp.* 354 - - 919
Micronics Computer, Inc.* - 269 - 4,773
Mid South Insurance Co. 352 102 18 2,904
Miller Building Systems, Inc. 69 - - 724
Morehouse Industries, Inc. - - - -
NAI Technologies, Inc. - 532 - -
NFS Financial Corp. - - - 3,350
Nautica Enterprises, Inc. - - - -
Napco Security Systems, Inc.* 60 - - 1,033
Nematron Corp.* - - - 149
O'Brien Energy Systems, Inc. Class A* - - - 1,032
Oriole Homes Corp. Class B - - - 3,363
Paris Business Forms, Inc.* - - - 431
Patrick Industries, Inc.* - 43 - 4,733
Petroleum Development Corp.* 133 - - 1,600
Plains Spirit Financial Corp. - 1,176 - -
Polk Audio, Inc.* - - - 1,048
Printronix, Inc.* - 135 - 1,807
Prime BanCorp, Inc. - - - -
Programming and Systems, Inc. - 394 - 3
Progressive Bank, Inc. 315 - 12 3,231
Pubco Corporation* - - - 825
SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED
AMOUNTS IN THOUSANDS
PURCHASES SALES DIVIDEND MARKET
AFFILIATE COST COST INCOME VALUE
Quixote Corp. $ 143 $ 117 $ - $ 9,203
RB&W Corp.* 1,548 - - 3,915
Republic Automotive Parts, Inc.* - - - 3,965
Rexon, Inc.* - 360 - 3,681
Right Management Consultants, Inc.* 871 26 - 3,937
Roanoke Electric Steel Corp. 39 - - 4,395
Robec, Inc.* - 201 - 706
Ropak Corp.* - 307 - 1,538
SBE, Inc.* - 363 - 1,410
Scientific Software Intercomp, Inc.* - 216 - 2,559
Seattle Filmworks, Inc.* - 21 - 5,581
Sico, Inc. - - - 2,513
Shelter Components Corp. - - - -
Smalls Oilfield Services Corp.* - - - 943
Sound Advice, Inc.* - - - 2,272
Span-America Medical Systems, Inc. - 97 - 1,500
Sparetech Corporation* 172 - 3,552
Steel of West Virginia, Inc.* 222 - - 6,730
Sterling Electronics Corp. - 357 - -
Stewart Information Services Corp. - - - 10,624
Suburban BanCorporation, Inc. 853 - 8 1,805
Summit BanCorp, Inc. Washington - - 6 1,311
Sunrise BanCorp (d) 2,264 - - 5,623
Surrey Metro Savings
Credit Union (non-vtg.) 43 - - 2,208
Third Finacial Corp.* 81 - - 1,139
Toastmaster, Inc.* - 99 - 3,972
Transtechnology Corp. 460 - - 4,626
UF BanCorp, Inc. - 1,023 - -
Uni Select - 353 - -
U.S. Intec, Inc. - - - 2,709
Universal Health Services, Inc.
Class B* 2,212 349 - 26,114
Valley Forge Corp. - 19 - -
Vertex Communications Corp.* - - - 6,118
Video Display Corp.* - - - 689
WPI Group, Inc.* 150 - - 968
Warren BanCorp, Inc.* 386 76 - 1,926
Watsco, Inc. Class A - 309 16 3,625
Watsco, Inc. Class B - 24 4 988
West Massachusetts Bancshares, Inc. - - - 1,736
Weston (Roy F.), Inc. Class A* - 465 - 3,933
Windmere Corp. - 555 - -
Wise Stores, Inc. Class A (sub-vtg.)* - 249 - 446
TOTALS $ 38,706 $ 32,123 $ 211 $ 546,878
*Non-income producing
6. 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
$69,000 under this arrangement.
TO CALL FIDELITY
FOR FUND INFORMATION AND QUOTES
The Fidelity Telephone Connection offers you special automated telephone
services for quotes and balances. The services are easy to use,
confidential and quick. All you need is a Touch Tone telephone.
YOUR PERSONAL IDENTIFICATION NUMBER
(PIN)
The first time you call one of our automated telephone services, we'll ask
you
to set up your Personal Identification
Number (PIN). The PIN assures that
only you have automated telephone
access to your account information.
Please have your Customer Number
(T-account #) handy when you call --
you'll need it to establish your PIN. If
you would ever like to change your PIN, just choose the "Change your
Personal
Identification Number" option when
you call. If you forget your PIN, please
call a Fidelity representative at 1-800-
544-6666 for assistance.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND QUOTES*
1-800-544-8544
Just make a selection from this record-ed menu:
PRESS
For quotes on funds you own.
1.
For an individual fund quote.
2.
For the ten most frequently
requested Fidelity fund quotes.
3.
For quotes on Fidelity Select
Portfolios(Registered trademark).
4.
To change your Personal
Identification Number (PIN).
5.
To speak with a Fidelity
representative.
6.
(PHONE_GRAPHIC)(PHONE_GRAPHIC)MUTUAL FUND ACCOUNT
BALANCES 1-800-544-7544
Just make a selection from this record-
ed menu:
PRESS
For balances on funds you own.
1.
For your most recent fund activity
(purchases, redemptions, and
dividends).
2.
To change your Personal
Identification Number (PIN).
3.
To speak with a Fidelity
representative.
4.
* WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND
RETURN WILL
VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS
MEANS THAT
YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO
ASSURANCE THAT
MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN
INVESTMENT IN
A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT.
TOTAL
RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF
DIVIDENDS
AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. FOR MORE
INFORMATION ON ANY
FIDELITY FUND INCLUDING MANAGEMENT FEES AND CHARGES, CALL 1-800-544-8888
FOR A FREE
PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY.
TO WRITE FIDELITY
Please locate the address that is closest to you. We'll give your
correspondence immediate attention and send you written confirmation upon
completion of your request. Please send ALL correspondence about retirement
accounts to Dallas.
(LETTER_GRAPHIC)MAKING CHANGES
TO YOUR ACCOUNT
(such as changing name, address, bank, etc.)
Fidelity Investments
P.O. Box 2269
Boston, MA 02107-2269
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30280
Salt Lake City, UT 84130-0280
(LETTER_GRAPHIC)FOR NON-RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
Additional Payments
P.O. Box 2656
Boston, MA 02293-0656
Fidelity Investments
Additional Payments
P.O. Box 620024
Dallas, TX 75262-0024
Fidelity Investments
Additional Payments
P.O. Box 31455
Salt Lake City, UT 84131-0455
OVERNIGHT EXPRESS
Fidelity Investments
Additional Payments
World Trade Center
164 Northern Avenue
Boston, MA 02210
SELLING SHARES
Fidelity Investments
P.O. Box 193
Boston, MA 02103-0878
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
Fidelity Investments
P.O. Box 30281
Salt Lake City, UT 84130-0281
OVERNIGHT EXPRESS
Fidelity Investments
Attn: Redemptions
World Trade Center
164 Northern Avenue
Boston, MA 02210
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 193
Boston, MA 02101-0193
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
(LETTER_GRAPHIC)FOR RETIREMENT
ACCOUNTS
BUYING SHARES
Fidelity Investments
P.O. Box 620024
Dallas, TX 75262-0024
SELLING SHARES
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
GENERAL CORRESPONDENCE
Fidelity Investments
P.O. Box 660602
Dallas, TX 75266-0602
INVESTMENT ADVISER
Fidelity Management & Research
Company
Boston, MA
OFFICERS
Edward C. Johnson 3d, President
J. Gary Burkhead, Senior Vice President
Joel Tillinghast, 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*
Richard J. Flynn*
Edward C. Johnson 3d
E. Bradley Jones*
Donald J. Kirk*
Peter S. Lynch
Edward H. Malone*
Gerald C. McDonough*
Thomas R. Williams*
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER
SERVICING AGENT
Fidelity Service Co.
Boston, MA
CUSTODIAN
Brown Brothers Harriman & Co.
Boston, MA
FIDELITY GROWTH FUNDS
Blue Chip Growth Fund
Capital Appreciation Fund
Contrafund
Disciplined Equity Fund
Dividend Growth Fund
Emerging Growth Fund
Fidelity Fifty Fund
Growth Company Fund
Low-Priced Stock Fund
Magellan(Registered trademark) Fund
New Millennium(registered trademark) Fund
OTC Portfolio
Retirement Growth Fund
Small Cap Stock Fund
Stock Selector
Trend Fund
Value Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Account Balances 1-800-544-7544
Exchanges/Redemptions 1-800-544-7777
Mutual Fund Quotes 1-800-544-8544
Account Assistance 1-800-544-6666
Product Information 1-800-544-8888
Retirement Accounts 1-800-544-4774
(8 a.m. - 9 p.m.)
TDD Service 1-800-544-0118
for the deaf and hearing impaired
(9 a.m. - 9 p.m. Eastern time)
* INDEPENDENT TRUSTEES
AUTOMATED LINES FOR QUICKEST SERVICE
