CONTENTS
PERFORMANCE A-2 How the fund has done over
time.
FUND TALK A-5 The manager's review of fund
performance, strategy and
outlook.
INVESTMENT CHANGES A-8 A summary of major shifts in
the fund's investments over
the past six months.
INVESTMENTS A-9 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS A-21 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES A-25 Notes to the financial
statements.
REPORT OF INDEPENDENT A-28 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS A-29
OF SPECIAL NOTE A-30
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $100,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). You can also look at the fund's income, as
reflected in the fund's yield, to measure performance. If Fidelity had
not reimbursed certain fund expenses, the total returns and dividends
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
Fidelity US Bond Index 6.48% 40.94% 113.58%
LB Aggregate Bond 6.27% 41.15% 111.53%
Intermediate US Government 5.10% 32.20% n/a
Funds
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or since
the fund started on March 8, 1990. For example, if you had invested
$1,000 in a fund that had a 5% return over the past year, the value of
your investment would be $1,050. You can compare the fund's returns to
the performance of the Lehman Brothers Aggregate Bond Index - a market
value-weighted index of investment-grade fixed-rate debt issues,
including government, corporate, asset-backed, and mortgage-backed
securities, with maturities of one year or more. To measure how the
fund's performance stacked up against its peers, you can compare it to
the intermediate U.S. government funds average, which reflects the
performance of mutual funds with similar objectives tracked by Lipper
Inc. The past one year average represents a peer group of 127 mutual
funds. These benchmarks reflect reinvestment of dividends and capital
gains, if any, and exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1999 PAST 1 YEAR PAST 5 YEARS LIFE OF FUND
Fidelity US Bond Index 6.48% 7.10% 8.81%
LB Aggregate Bond 6.27% 7.14% 8.70%
Intermediate US Government 5.10% 5.73% n/a
Funds
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$100,000 OVER LIFE OF FUND
U.S. Bond Index Fund LB Aggregate Bond
00651 LB001
1990/03/08 100000.00 100000.00
1990/03/31 100334.13 100200.26
1990/04/30 99232.62 99278.42
1990/05/31 102189.26 102217.06
1990/06/30 103637.46 103862.75
1990/07/31 105211.59 105296.06
1990/08/31 103898.15 103885.09
1990/09/30 104751.63 104747.34
1990/10/31 106143.01 106077.63
1990/11/30 108273.07 108358.30
1990/12/31 110005.55 110048.69
1991/01/31 111316.41 111413.29
1991/02/28 112055.04 112360.31
1991/03/31 112952.27 113135.59
1991/04/30 114289.10 114357.46
1991/05/31 115089.04 115020.73
1991/06/30 114998.91 114963.22
1991/07/31 116575.94 116561.21
1991/08/31 119079.57 119078.93
1991/09/30 121585.25 121496.23
1991/10/31 122981.96 122844.84
1991/11/30 124257.93 123975.01
1991/12/31 128015.40 127657.07
1992/01/31 126511.27 125920.93
1992/02/29 127201.55 126739.42
1992/03/31 126754.56 126029.68
1992/04/30 127580.12 126937.09
1992/05/31 129996.05 129336.20
1992/06/30 131918.90 131121.04
1992/07/31 134833.17 133795.91
1992/08/31 136292.03 135147.25
1992/09/30 137967.69 136755.50
1992/10/31 136317.08 134936.66
1992/11/30 136256.71 134963.64
1992/12/31 138217.87 137109.57
1993/01/31 140967.33 139742.07
1993/02/28 143813.29 142187.56
1993/03/31 144409.44 142784.74
1993/04/30 145487.25 143784.24
1993/05/31 145670.64 143971.16
1993/06/30 148202.15 146577.03
1993/07/31 149308.26 147412.52
1993/08/31 151733.88 149992.24
1993/09/30 152252.00 150397.22
1993/10/31 152763.63 150953.69
1993/11/30 151516.01 149670.58
1993/12/31 152335.03 150478.81
1994/01/31 154246.91 152510.27
1994/02/28 151546.54 149856.59
1994/03/31 148345.96 146155.13
1994/04/30 147082.69 144985.89
1994/05/31 146961.57 144971.39
1994/06/30 146846.42 144652.46
1994/07/31 149481.52 147531.04
1994/08/31 149682.61 147708.08
1994/09/30 147691.69 145536.77
1994/10/31 147616.35 145405.79
1994/11/30 147378.55 145085.89
1994/12/31 148355.28 146086.99
1995/01/31 151119.14 148979.51
1995/02/28 154420.52 152525.22
1995/03/31 155258.79 153455.62
1995/04/30 157445.95 155604.00
1995/05/31 163459.44 161625.88
1995/06/30 164724.05 162805.75
1995/07/31 164468.64 162447.57
1995/08/31 166233.98 164413.19
1995/09/30 167825.55 166008.00
1995/10/31 170226.02 168166.10
1995/11/30 172626.38 170688.59
1995/12/31 175058.06 173078.23
1996/01/31 176222.54 174220.55
1996/02/29 173149.98 171189.11
1996/03/31 171911.37 169990.79
1996/04/30 170786.38 169038.84
1996/05/31 170482.12 168700.76
1996/06/30 172616.98 170961.35
1996/07/31 173139.90 171422.95
1996/08/31 172842.80 171131.53
1996/09/30 175690.27 174109.22
1996/10/31 179590.05 177974.44
1996/11/30 182646.39 181017.80
1996/12/31 180984.46 179334.34
1997/01/31 181371.40 179890.28
1997/02/28 181682.83 180340.00
1997/03/31 179823.39 178338.23
1997/04/30 182635.09 181013.30
1997/05/31 184088.01 182732.93
1997/06/30 186396.97 184907.45
1997/07/31 191235.46 189899.95
1997/08/31 189667.54 188285.80
1997/09/30 192553.43 191072.43
1997/10/31 195298.01 193842.98
1997/11/30 196212.75 194734.66
1997/12/31 198262.66 196701.48
1998/01/31 200838.35 199219.26
1998/02/28 200587.29 199059.88
1998/03/31 201355.50 199736.69
1998/04/30 202263.39 200775.32
1998/05/31 204148.52 202682.68
1998/06/30 206019.11 204405.48
1998/07/31 206558.77 204834.74
1998/08/31 210134.26 208173.54
1998/09/30 215043.74 213044.80
1998/10/31 213813.38 211915.67
1998/11/30 215057.71 213123.58
1998/12/31 215841.89 213762.96
1999/01/31 217504.75 215280.67
1999/02/26 213584.65 211513.26
IMATRL PRASUN SHR__CHT 19990228 19990309 112033 R00000000000111
$100,000 OVER LIFE OF FUND: Let's say hypothetically that $100,000 was
invested in Fidelity U.S. Bond Index Fund on March 8, 1990, when the
fund started. As the chart shows, by February 28, 1999, the value of
the investment would have grown to $213,584 - a 113.58% increase on
the initial investment. For comparison, look at how the Lehman
Brothers Aggregate Bond Index did over the same period. With dividends
and capital gains, if any, reinvested, the same $100,000 would have
grown to $211,528 - a 111.53% increase.
(checkmark)UNDERSTANDING
PERFORMANCE
How a fund did yesterday is
no guarantee of how it will do
tomorrow. Bond prices, for
example, generally move in
the opposite direction of
interest rates. In turn, the
share price, return and yield
of a fund that invests in bonds
will vary. That means if you
sell your shares during a
market downturn, you might
lose money. But if you can ride
out the market's ups and
downs, you may have a gain.
DIVIDENDS AND YIELD
PERIODS ENDED FEBRUARY 28, 1999 PAST 1 MONTH PAST 6 MONTHS PAST 1 YEAR
Dividends per share 5.08(cents) 33.22(cents) 68.73(cents)
Annualized dividend rate 6.07% 6.09% 6.30%
30-day annualized yield 5.68% - -
DIVIDENDS per share show the income paid by the fund for a set period.
If you annualize this number, based on an average share price of
$10.91 over the past one month, $11.00 over the past six months and
$10.91 over the past one year, you can compare the fund's income over
these three periods. The 30-day annualized YIELD is a standard formula
for all funds based on the yields of the bonds in the fund, averaged
over the past 30 days. This figure shows you the yield characteristics
of the fund's investments at the end of the period. It also helps you
compare funds from different companies on an equal basis. If Fidelity
had not reimbursed certain fund expenses during the period shown, the
yield would have been 5.45%.
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Thomas Silvia)
An interview with Thomas Silvia, Portfolio Manager of Fidelity
U.S. Bond Index Fund
Q. HOW DID THE FUND PERFORM, TOM?
A. For the 12-month period that ended February 28, 1999, the fund had
a total return of 6.48%, while the Lehman Brothers Aggregate Bond
Index returned 6.27%. For another comparison, the intermediate U.S.
government funds average as tracked by Lipper Inc. returned 5.10% for
the same 12-month period.
Q. HOW WOULD YOU CHARACTERIZE THE INVESTING ENVIRONMENT FOR BONDS OVER
THE PAST YEAR?
A. Let's start by reviewing the Treasury market's performance, which
posted quite strong returns during the first eight months or so of the
period amid uncertainty about the economic, fiscal and political
health of Southeast Asia, Japan and parts of Latin America. During
that period, Treasuries were viewed by investors from around the world
as the safe haven of choice against worsening global economic
problems. As investors flocked to Treasuries, they pushed their yields
- - which move in the opposite direction of their prices - to 30-year
lows. In late summer, Russia effectively defaulted on some of its debt
and a large hedge fund verged on near-collapse. In response, the U.S.
Federal Reserve Board pumped additional enthusiasm into the Treasury
market by cutting short-term interest rates by 0.75 percentage points
during a three-month period from September through November. With
protracted economic problems spreading across the recession-prone -
and in some cases, depression-prone - economies in Latin America,
Southeast Asia, Japan and Russia, investors expected the Fed to
continue lowering interest rates further in order to keep the U.S. on
a growth track.
Q. WHAT CAUSED SENTIMENT TO SHIFT SO DRAMATICALLY DURING THE PAST FOUR
OR FIVE MONTHS?
A. Repeated signs that the U.S. economy was growing at a
faster-than-expected pace - despite economic turmoil elsewhere -
doused hopes of further interest-rate cuts, turning investors more
bearish about Treasury bonds' short-term prospects. In fact, many
market observers worried that employment, purchasing and Gross
Domestic Product reports were so strong that the Fed would be forced
to hike interest rates - rather than lower them - in order to calm
brewing inflationary pressures. The change in sentiment led many
investors to unwind the same "flight-to-quality" that had previously
pushed Treasury prices to near all-time highs last fall. Even though
inflation didn't rise substantially, Treasury yields climbed nearly a
full percentage point from late October through the end of the period.
Q. HOW DID OTHER TYPES OF BONDS - SUCH AS MORTGAGE, AGENCY AND
CORPORATE BONDS - PERFORM AGAINST THAT BACKDROP?
A. They were relatively strong early on, experienced a pretty tough
fall but have gained significant ground on Treasury securities during
the past four or five months. Corporate bonds were volatile throughout
the first half of the period in response to changing perceptions about
the strength and sustainability of corporate profitability. Mortgage
securities, meanwhile, started off strong but increasingly suffered
from fears that more early prepayments would occur as homeowners
refinanced their home loans to lock in lower interest rates. Bond
holders generally dislike prepayments because it potentially forces
them to reinvest the proceeds at lower interest rates. Agency
securities were in high demand last spring in part because of their
relatively attractive yields. And even though they carry the implicit
backing of the U.S. government, agency securities did not benefit from
the same "flight-to-quality" that lifted Treasuries, partly because
they were perceived to be less liquid, or less easily traded.
Q. HOW HAVE THE NON-GOVERNMENT SECTORS PERFORMED IN LIGHT OF A WEAKER
TREASURY MARKET OVER THE PAST FOUR OR FIVE MONTHS?
A. They've improved significantly. As investors began to focus on the
prospects of higher interest rates, they gravitated away from
Treasuries into higher-yielding mortgage and agency securities, both
of which offered attractive values in many cases. With news that the
U.S. economy has proven fairly resistant to worldwide economic
turmoil, investors were worrying less about corporate profitability
and recently have pushed corporate bond prices up somewhat from late
last-year's lows.
Q. WHAT WERE THE FINAL TALLIES FOR EACH OF THE SEGMENTS THAT MAKE UP
THE LEHMAN BROTHERS AGGREGATE BOND INDEX OVER THE PAST YEAR?
A. For the 12-month period that ended February 28, 1999, here's how
individual sectors within the index performed: mortgage-backed
securities, at about 31.8% of the index, returned 6.01%; corporate
securities, which accounted for nearly 22.1% of the index, returned
5.82%; agency securities, at about 8.9% of the index, returned 6.46%;
and asset-backed securities at less than 1.3% of the index, returned
6.29%. Those returns compared to the 6.53% return of U.S. Treasury
securities, which made up about 35.9% of the index.
Q. TURNING TO THE FUND, WHAT HELPED ITS PERFORMANCE RELATIVE TO THE
LEHMAN BROTHERS AGGREGATE BOND INDEX?
A. The main reason for the fund's outperformance was how its
investments were allocated among the various sub-sectors of the bond
market. Specifically, the fund had a slightly larger weighting than
the index in corporate securities until early July, which benefited
performance due to the strength of that sector. From about mid-July
through late September, I pared back the fund's stake in corporate
securities, which performed poorly when investors became more
squeamish about corporate profitability. After those fears began to
subside, I added more corporate securities at what I viewed as
attractive prices. Given their recent strong performance, having that
higher allocation to corporate securities helped the fund's
performance over the past three to four months. The fund also
benefited from small, periodic changes of its allocation to mortgage
securities.
Q. WHAT'S YOUR OUTLOOK?
A. I think that the worst of the crisis that plagued global financial
markets last fall is behind us. The market is now pricing bonds with
the expectation that the Fed won't lower interest rates from here as
long as the U.S. economy remains strong. Given that, I think we'll
enter a more "normal", less volatile market environment than we
experienced in the last half of 1998. Given my outlook, I believe that
agency, mortgage, corporate and asset-backed securities are poised to
do better than Treasuries over the near-term. But whatever happens,
I'll continue to attempt to keep the fund's performance on track with
the Lehman Brothers Aggregate Bond Index.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: to provide returns
consistent with those of the
Lehman Brothers Aggregate
Bond Index
START DATE: March 8, 1990
SIZE: as of February 28,
1999, more than $1.2
billion
MANAGER: Thomas Silvia,
since 1998; manager, other
Fidelity and Spartan bond
funds; joined Fidelity in
1993
TOM SILVIA ON HIS
INVESTMENT APPROACH:
"My goal is to manage the fund so
that its performance tracks that of
the Lehman Brothers Aggregate
Bond Index. That said, I don't buy
every security in the index -
which is made up of about 5,700
individual securities. Instead, I
choose representative securities.
In the corporate sector, for
example, the fund had a modest
overweighting - relative to the
index - in corporate securities
issued by banks and financial
companies. With the help of
Fidelity's research team, I
determined that they were priced
attractively when I bought them,
in part because the supply of them
was fairly ample. Even though they
struggled when the world's
financial crisis appeared to be at its
worst in the fall, I felt they offered
the potential for strong long-term
total returns. The fund also got a
boost from its modest
overweighting in its
telecommunications holdings,
which performed quite well
throughout most of the year. Finally,
the fund benefited from its
slightly bigger stake in Yankee
bonds, which are
dollar-denominated bonds issued
in the United States by foreign
banks, corporations and
governments, particularly
high-quality Yankee bonds issued
by Canadian provinces."
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
QUALITY DIVERSIFICATION AS OF
FEBRUARY 28, 1999
(MOODY'S RATINGS) % OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS 6
MONTHS AGO
Aaa 69.3 71.6
Aa 1.2 0.4
A 10.3 8.2
Baa 13.9 12.6
Not Rated 0.2 0.3
</TABLE>
TABLE EXCLUDES SHORT-TERM INVESTMENTS. WHERE MOODY'S RATINGS ARE NOT
AVAILABLE, WE HAVE USED S&P RATINGS. SECURITIES RATED AS "BA" OR BELOW
WERE RATED INVESTMENT GRADE BY OTHER NATIONALLY RECOGNIZED RATING
AGENCIES OR ASSIGNED AN INVESTMENT GRADE RATING AT THE TIME OF
ACQUISITION BY FIDELITY.
AVERAGE YEARS TO MATURITY AS
OF FEBRUARY 28, 1999
6 MONTHS AGO
Years 7.8 7.6
AVERAGE YEARS TO MATURITY IS BASED ON THE AVERAGE TIME UNTIL PRINCIPAL
PAYMENTS ARE EXPECTED FROM EACH OF THE FUND'S BONDS, WEIGHTED BY
DOLLAR AMOUNT.
DURATION AS OF FEBRUARY 28,
1999
6 MONTHS AGO
Years 4.8 4.4
DURATION SHOWS HOW MUCH A BOND FUND'S PRICE FLUCTUATES WITH CHANGES IN
COMPARABLE INTEREST RATES. IF RATES RISE 1%, FOR EXAMPLE, A FUND WITH
A FIVE-YEAR DURATION IS LIKELY TO LOSE ABOUT 5% OF ITS VALUE. OTHER
FACTORS ALSO CAN INFLUENCE A BOND FUND'S PERFORMANCE AND SHARE PRICE.
ACCORDINGLY, A BOND FUND'S ACTUAL PERFORMANCE MAY DIFFER FROM THIS
EXAMPLE.
ASSET ALLOCATION (% OF FUND'S
INVESTMENTS)
AS OF FEBRUARY 28, 1999 *
U.S. government
and agency
obligations 40.8%
Mortgage-backed
securities 29.0%
Corporate bonds 21.9%
Foreign government
obligations 1.5%
Other 1.7%
Short-term
investments 5.1%
* FOREIGN
INVESTMENTS 5.1%
Row: 1, Col: 6, Value: 40.8
Row: 1, Col: 5, Value: 29.0
Row: 1, Col: 4, Value: 21.9
Row: 1, Col: 3, Value: 1.5
Row: 1, Col: 2, Value: 1.7
Row: 1, Col: 1, Value: 5.1
AS OF AUGUST 31, 1998 **
U.S. government
and agency
obligations 42.0%
Mortgage-backed
securities 28.3%
Corporate bonds 22.4%
Foreign government
obligations 0.4%
Other 0.0%
Short-term
investments 6.9%
** FOREIGN
INVESTMENTS 4.9%
Row: 1, Col: 6, Value: 41.0
Row: 1, Col: 5, Value: 28.3
Row: 1, Col: 4, Value: 22.4
Row: 1, Col: 3, Value: 1.4
Row: 1, Col: 2, Value: 0.0
Row: 1, Col: 1, Value: 6.9
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
NONCONVERTIBLE BONDS - 21.9%
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
AEROSPACE & DEFENSE - 0.5%
DEFENSE ELECTRONICS - 0.5%
Raytheon Co.:
5.95% 3/15/01 Baa1 $ 3,300,000 $ 3,305,445
6.45% 8/15/02 Baa1 3,470,000 3,514,694
6,820,139
BASIC INDUSTRIES - 0.2%
PACKAGING & CONTAINERS - 0.2%
Corning, Inc. 6.85% 3/1/29 A2 2,330,000 2,325,596
CONSTRUCTION & REAL ESTATE -
0.6%
REAL ESTATE INVESTMENT TRUSTS
- - 0.6%
CenterPoint Properties Trust Baa2 1,210,000 1,144,575
6.75% 4/1/05
Equity Office Properties Baa1 2,550,000 2,532,737
Trust 6.376% 2/15/02
Weeks Realty LP 6.875% 3/15/05 Baa2 4,000,000 3,694,000
7,371,312
DURABLES - 0.3%
TEXTILES & APPAREL - 0.3%
Levi Strauss & Co. 7% 11/1/06 Baa3 4,035,000 3,671,850
(a)
ENERGY - 0.6%
ENERGY SERVICES - 0.3%
Baker Hughes, Inc. 5.8% A2 5,000,000 4,935,500
2/15/03 (a)
OIL & GAS - 0.3%
Elf Aquitaine yankee 7.75% Aa3 250,000 251,005
5/1/99
Occidental Petroleum Corp. Baa3 390,000 390,792
6.09% 11/29/99
Petro-Canada 7% 11/15/28 A3 3,270,000 3,048,131
3,689,928
TOTAL ENERGY 8,625,428
FINANCE - 9.1%
BANKS - 4.6%
Banc One Corp. 7.625% 10/15/26 A1 6,000,000 6,510,720
Banco Latinoamericano Baa2 1,000,000 997,188
Exportaciones SA euro 6.9%
12/4/99 (a)
BankBoston NA:
6.375% 3/25/08 A2 1,200,000 1,175,268
NONCONVERTIBLE BONDS -
CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
FINANCE - CONTINUED
BANKS - CONTINUED
BankBoston NA: - continued
6.375% 4/15/08 A2 $ 7,000,000 $ 6,854,820
BanPonce Corp. 6.488% 3/3/00 A3 1,440,000 1,449,432
Barclays Bank PLC yankee:
5.875% 7/15/00 A1 5,400,000 5,399,622
5.95% 7/15/01 A1 5,950,000 5,947,739
Barnett Banks, Inc. 10.875% Aa3 1,020,000 1,196,511
3/15/03
Capital One Bank:
6.375% 2/15/03 Baa3 4,400,000 4,293,432
6.48% 6/28/02 Baa3 1,000,000 983,090
Den Danske Bank AS 6.375% A1 7,770,000 7,619,456
6/15/08 (a)(b)
First Security Corp. 7.5% Baa1 3,000,000 3,071,250
9/1/02
First Tennessee National Baa1 1,000,000 1,019,790
Corp. 6.75% 11/15/05
Kansallis-Osake-Pankki, New A3 2,600,000 2,874,040
York 10% 5/1/02
Merita Bank Ltd. yankee 6.5% A3 2,100,000 2,092,986
1/15/06
Popular, Inc. 6.4% 8/25/00 A3 2,540,000 2,535,377
Provident Bank 6.375% 1/15/04 Baa2 1,500,000 1,491,570
Providian National Bank 6.25% Baa3 4,700,000 4,677,158
5/7/01
Union Planters Corp. 6.75% Baa2 1,500,000 1,492,440
11/1/05
61,681,889
CREDIT & OTHER FINANCE - 2.4%
Ahmanson Capital Trust I A3 3,000,000 3,162,240
8.36% 12/1/26 (a)
AT&T Capital Corp. 6.25% Baa3 4,350,000 4,314,983
5/15/01
Countrywide Funding Corp. A3 4,000,000 4,018,760
6.45% 2/27/03
Edison Mission Energy Funding Baa1 2,857,876 2,891,684
Corp. 6.77% 9/15/03 (a)
First Security Capital I A3 3,000,000 3,159,480
8.41% 12/15/26
Ford Motor Credit Co. 5.75% A1 7,000,000 6,885,620
2/23/04
Heller Financial, Inc. 6.5% A3 2,000,000 2,014,660
5/15/00
Sprint Capital Corp. 6.875% Baa1 4,700,000 4,702,914
11/15/28
Yorkshire Power Finance Ltd. Baa2 1,200,000 1,182,672
yankee 6.496% 2/25/08
32,333,013
INSURANCE - 1.2%
Farmers Insurance Exchange:
8.5% 8/1/04 (a) A2 4,000,000 4,391,120
8.625% 5/1/24 (a) A2 5,000,000 5,612,000
NONCONVERTIBLE BONDS -
CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Metropolitan Life Insurance A1 $ 3,560,000 $ 3,517,672
Co. 6.3% 11/1/03 (a)
Nationwide Mutual Insurance A1 2,690,000 2,678,110
Co. 6.5% 2/15/04 (a)
16,198,902
SAVINGS & LOANS - 0.6%
Home Savings of America FSB:
6% 11/1/00 A3 1,600,000 1,593,824
6.5% 8/15/04 A3 2,000,000 1,974,280
Long Island Savings Bank FSB:
6.2% 4/2/01 Baa3 2,050,000 2,046,782
7% 6/13/02 Baa3 2,120,000 2,147,814
7,762,700
SECURITIES INDUSTRY - 0.3%
Amvescap PLC yankee 6.375% A3 4,835,000 4,771,613
5/15/03
TOTAL FINANCE 122,748,117
INDUSTRIAL MACHINERY &
EQUIPMENT - 0.9%
Tyco International Group SA:
6.125% 11/1/08 (a) Baa1 10,000,000 9,561,400
yankee 6.375% 6/15/05 Baa1 2,920,000 2,924,701
12,486,101
MEDIA & LEISURE - 2.4%
BROADCASTING - 2.3%
Continental Cablevision, Inc. Baa3 5,000,000 5,469,400
8.3% 5/15/06
Hearst-Argyle Television, Baa3 5,000,000 5,051,950
Inc. 7% 11/15/07
TCI Communications, Inc. A2 12,000,000 14,606,880
8.75% 8/1/15
Time Warner, Inc.:
6.625% 5/15/29 Baa3 5,000,000 4,744,750
8.18% 8/15/07 Baa3 1,000,000 1,116,510
30,989,490
NONCONVERTIBLE BONDS -
CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
PUBLISHING - 0.1%
News America Holdings, Inc. Baa3 $ 1,000,000 $ 1,082,390
8.625% 2/1/03
TOTAL MEDIA & LEISURE 32,071,880
NONDURABLES - 1.1%
BEVERAGES - 0.8%
Seagram Co. Ltd. 8.35% 1/15/22 Baa3 1,020,000 1,118,226
Seagram J E & Sons, Inc. Baa3 10,000,000 9,900,000
6.625% 12/15/05
11,018,226
FOODS - 0.2%
ConAgra, Inc. 5.5% 10/15/02 Baa1 2,400,000 2,347,608
TOBACCO - 0.1%
Philip Morris Companies, Inc. A2 2,000,000 2,049,860
7% 7/15/05
TOTAL NONDURABLES 15,415,694
RETAIL & WHOLESALE - 0.9%
DRUG STORES - 0.7%
Rite Aid Corp.:
5.5% 12/15/00 (a) Baa1 5,000,000 4,960,500
6% 12/15/05 (a) Baa1 5,000,000 4,851,000
9,811,500
GENERAL MERCHANDISE STORES -
0.2%
Federated Department Stores, Baa2 1,800,000 1,816,254
Inc. 6.79% 7/15/27
TOTAL RETAIL & WHOLESALE 11,627,754
TECHNOLOGY - 0.5%
COMPUTER SERVICES & SOFTWARE
- - 0.3%
Computer Associates Baa1 4,000,000 3,966,120
International, Inc. 6.25%
4/15/03
COMPUTERS & OFFICE EQUIPMENT
- - 0.2%
Comdisco, Inc.:
5.75% 2/15/01 Baa1 1,605,000 1,587,714
NONCONVERTIBLE BONDS -
CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT
- - CONTINUED
Comdisco, Inc.: - continued
9.25% 7/6/00 Baa2 $ 375,000 $ 392,003
9.3% 6/27/00 Baa2 1,250,000 1,306,538
3,286,255
TOTAL TECHNOLOGY 7,252,375
TRANSPORTATION - 0.9%
AIR TRANSPORTATION - 0.3%
Continental Airlines, Inc. Baa1 1,472,300 1,469,444
Pass Through Trust
Certificates 7.42% 10/1/08
Delta Air Lines, Inc. 9.875% Baa3 3,000,000 3,125,760
5/15/00
4,595,204
RAILROADS - 0.6%
Canadian National Railway Co. Baa2 2,400,000 2,421,768
6.9% 7/15/28
CSX Corp. 6.46% 6/22/05 Baa2 2,000,000 2,003,540
Wisconsin Central Baa2 3,150,000 3,093,962
Transportation Corp. 6.625%
4/15/08
7,519,270
TOTAL TRANSPORTATION 12,114,474
UTILITIES - 3.9%
CELLULAR - 0.6%
360 Degrees Communications Baa1 2,000,000 2,075,200
Co. 7.125% 3/1/03
AirTouch Communications, Inc. Baa2 2,000,000 2,054,100
6.65% 5/1/08
Cable & Wireless Baa1 3,470,000 3,478,293
Communications PLC 6.375%
3/6/03
7,607,593
ELECTRIC UTILITY - 1.7%
Avon Energy Partners Holdings:
yankee 6.73% 12/11/02 (a) Baa2 3,000,000 3,027,240
6.46% 3/4/08 (a) Baa2 5,000,000 4,976,850
Israel Electric Corp. Ltd. A3 3,000,000 2,893,740
7.1% 12/15/07 (a)
NONCONVERTIBLE BONDS -
CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
UTILITIES - CONTINUED
ELECTRIC UTILITY - CONTINUED
Massachusetts Electric Co. A1 $ 2,000,000 $ 2,023,000
6.78% 11/20/06
Philadelphia Electric Co. Baa1 10,000,000 10,182,600
6.625% 3/1/03
23,103,430
GAS - 1.1%
Columbia Gas System, Inc.:
6.39% 11/28/00 A3 3,000,000 3,023,250
6.61% 11/28/02 A3 1,000,000 1,015,560
Enserch Corp. 6.25% 1/1/03 Baa2 4,375,000 4,395,869
Sonat, Inc. 9.5% 8/15/99 Baa1 3,238,000 3,295,863
Southwest Gas Corp. 9.75% Baa2 3,020,000 3,302,763
6/15/02
15,033,305
TELEPHONE SERVICES - 0.5%
MCI WorldCom, Inc. 8.875% Baa2 2,014,000 2,167,688
1/15/06
Pacific Bell 8.7% 6/15/01 A1 3,850,000 4,099,480
6,267,168
TOTAL UTILITIES 52,011,496
TOTAL NONCONVERTIBLE BONDS 294,542,216
(Cost $297,729,145)
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - 40.8%
U.S. GOVERNMENT AGENCY
OBLIGATIONS - 9.2%
Fannie Mae:
6.5% 7/16/07 Aaa 8,835,000 9,151,116
6.64% 7/2/07 Aaa 10,500,000 10,933,125
7.49% 3/2/05 Aaa 1,050,000 1,139,576
7.65% 3/10/05 Aaa 2,000,000 2,186,240
9.2% 9/11/00 Aaa 2,500,000 2,636,325
Federal Agricultural Mortgage
Corp.:
6.92% 8/10/02 Aaa 1,040,000 1,081,111
7.44% 5/25/00 Aaa 500,000 511,795
Federal Farm Credit Bank:
5.95% 5/18/05 Aaa 3,000,000 3,021,570
5.97% 3/11/05 Aaa 5,000,000 5,039,050
6.22% 10/12/04 Aaa 18,110,000 18,483,428
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
U.S. GOVERNMENT AGENCY
OBLIGATIONS - CONTINUED
Federal Home Loan Bank:
4.96% 10/7/05 Aaa $ 4,100,000 $ 3,907,177
5.125% 2/26/02 Aaa 3,000,000 2,993,190
7.31% 6/16/04 Aaa 2,040,000 2,183,432
Federal National Mortgage
Association:
0% 4/8/03 Aaa 1,000,000 800,940
0% 10/8/04 Aaa 1,000,000 727,660
Freddie Mac:
5% 2/15/01 Aaa 10,000,000 9,927,870
8% 1/26/05 Aaa 1,000,000 1,110,000
Government Loan Trusts Aaa 2,609,001 2,849,290
(assets of Trust guaranteed
by U.S. Government through
Agency for International
Development) 8.5% 4/1/06
Government Trust Certificates
(assets of Trust guaranteed
by U.S. Government through
Defense Security Assistance
Agency):
Class 1-C, 9.25% 11/15/01 Aaa 483,103 508,277
Class 2-E 9.4% 5/15/02 Aaa 1,223,123 1,279,753
Class T-3, 9.625% 5/15/02 Aaa 1,576,199 1,649,178
Guaranteed Export Trust
Certificates (assets of
Trust guaranteed by U.S.
Government through
Export-Import Bank):
Series 1993 C, 5.2% 10/15/04 Aaa 1,080,489 1,064,349
Series 1993 D, 5.23% 5/15/05 Aaa 500,000 491,465
Series 1994 C, 6.61% 9/15/99 Aaa 47,430 47,497
Series 1995-A, 6.28% 6/15/04 Aaa 8,774,118 8,884,013
Series 1995-B, 6.13% 6/15/04 Aaa 11,000,000 11,095,975
Guaranteed Trade Trust Aaa 3,750,000 3,764,250
Certificates (assets of
Trust guaranteed by U.S.
Government through
Export-Import Bank) Series
1997-A, 6.104% 7/15/03
Overseas Private Investment
Corp. U.S. Government
guaranteed participation
certificate:
Series 1994-195, 6.08% Aaa 1,363,425 1,383,372
8/15/04 (callable)
Series 1998-196A, 5.926% - 2,795,016 2,827,299
6/15/05
Private Export Funding Corp.:
secured 5.48% 9/15/03 Aaa 1,625,000 1,628,401
secured 5.65% 3/15/03 Aaa 1,433,700 1,432,023
secured 5.8% 2/1/04 Aaa 1,900,000 1,903,382
U.S. GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS - CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
U.S. GOVERNMENT AGENCY
OBLIGATIONS - CONTINUED
Private Export Funding Corp.:
- - continued
secured 6.86% 4/30/04 Aaa $ 750,750 $ 769,715
5.31% 11/15/03 (a) Aaa 5,000,000 4,849,950
U.S. Department of Housing Aaa 1,000,000 1,088,730
and Urban Development
government guaranteed
participation certificates
Series 1995 A, 8.27% 8/1/03
TOTAL U.S. GOVERNMENT AGENCY 123,350,524
OBLIGATIONS
U.S. TREASURY OBLIGATIONS -
31.6%
U.S. Treasury Bond:
6.125% 11/15/27 Aaa 9,000,000 9,414,810
6.5% 11/15/26 Aaa 18,600,000 20,361,234
8% 11/15/21 Aaa 26,610,000 33,694,913
8.125% 5/15/21 Aaa 7,000,000 8,951,250
8.75% 8/15/20 Aaa 33,145,000 44,756,025
8.875% 8/15/17 Aaa 11,750,000 15,730,313
9% 11/15/18 Aaa 9,855,000 13,450,498
10.75% 8/15/05 Aaa 5,000,000 6,422,650
12% 8/15/13 Aaa 17,300,000 25,236,375
U.S. Treasury Notes:
5.375% 6/30/00 Aaa 150,000,000 150,467,999
5.75% 11/15/00 Aaa 18,000,000 18,163,080
6% 7/31/02 Aaa 31,700,000 32,413,250
7% 7/15/06 Aaa 41,500,000 45,377,760
TOTAL U.S. TREASURY 424,440,157
OBLIGATIONS
TOTAL U.S. GOVERNMENT AND 547,790,681
GOVERNMENT AGENCY OBLIGATIONS
(Cost $558,245,956)
U.S. GOVERNMENT AGENCY -
MORTGAGE SECURITIES - 25.4%
FANNIE MAE - 17.3%
5.5% 1/1/09 to 4/1/11 Aaa 8,547,653 8,344,513
6% 3/1/11 to 2/1/29 Aaa 38,792,014 37,413,322
6.5% 11/1/08 to 2/1/29 Aaa 65,308,323 65,176,158
U.S. GOVERNMENT AGENCY -
MORTGAGE SECURITIES -
CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
FANNIE MAE - CONTINUED
6.5% 3/1/29 Aaa $ 26,000,000 $ 25,813,125
7% 6/1/23 to 3/1/29 Aaa 62,059,120 62,807,953
7.5% 11/1/07 to 4/1/28 Aaa 4,794,691 4,926,100
8% 3/1/24 to 8/1/28 Aaa 4,668,092 4,860,561
8.5% 6/1/17 to 3/1/28 Aaa 18,256,122 19,219,151
9.5% 12/1/09 to 9/1/21 Aaa 2,625,168 2,816,675
10.75% 9/1/10 to 5/1/14 Aaa 175,478 191,786
11.25% 5/1/14 Aaa 32,048 35,649
11.5% 8/1/14 Aaa 97,173 108,258
12.5% 1/1/15 Aaa 39,755 45,248
13.5% 8/1/14 to 11/1/14 Aaa 12,687 14,956
14% 3/1/12 to 9/1/13 Aaa 117,846 137,357
TOTAL FANNIE MAE 231,910,812
FREDDIE MAC - 1.2%
6.5% 10/1/07 Aaa 523,624 527,625
7% 6/1/99 to 7/1/01 Aaa 1,040,794 1,046,058
7.5% 10/1/27 to 4/1/28 Aaa 7,062,173 7,254,123
8% 7/1/16 to 2/1/28 Aaa 2,655,401 2,764,124
8.5% 9/1/19 Aaa 16,884 17,884
9% 11/1/01 to 10/1/16 Aaa 314,359 329,357
9.5% 10/1/08 to 9/1/18 Aaa 709,597 744,406
10% 6/1/20 Aaa 75,225 81,595
10.5% 1/1/01 to 2/1/19 Aaa 355,178 389,140
11% 1/1/06 to 9/1/20 Aaa 1,976,909 2,212,629
11.5% 8/1/13 to 10/1/15 Aaa 143,602 161,307
11.75% 9/1/13 Aaa 39,813 44,710
12% 2/1/13 to 7/1/15 Aaa 44,906 51,407
12.75% 8/1/12 to 10/1/13 Aaa 137,486 159,836
13.5% 12/1/14 Aaa 280,340 331,320
TOTAL FREDDIE MAC 16,115,521
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - 6.9%
6% 12/15/08 to 4/15/09 Aaa 1,797,587 1,797,587
6.5% 6/15/23 to 6/15/24 Aaa 6,492,176 6,462,503
7% 12/15/22 to 12/15/28 Aaa 35,214,995 35,710,658
U.S. GOVERNMENT AGENCY -
MORTGAGE SECURITIES -
CONTINUED
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
GOVERNMENT NATIONAL MORTGAGE
ASSOCIATION - CONTINUED
7.5% 2/15/17 to 8/15/28 Aaa $ 24,648,702 $ 25,370,793
8% 11/15/16 to 8/15/27 Aaa 10,349,517 10,793,414
9% 7/15/18 Aaa 20,782 22,336
9.5% 1/15/18 to 3/15/23 Aaa 3,127,311 3,362,749
10% 6/15/13 to 9/15/25 Aaa 2,771,978 3,012,861
10.5% 5/20/16 to 1/20/18 Aaa 1,908,397 2,080,255
11% 2/15/10 to 8/15/19 Aaa 2,735,241 3,052,443
11.5% 2/15/13 to 8/15/13 Aaa 1,821 2,049
12% 2/15/16 Aaa 807,643 915,140
TOTAL GOVERNMENT NATIONAL 92,582,788
MORTGAGE ASSOCIATION
TOTAL U.S. GOVERNMENT AGENCY 340,609,121
- - MORTGAGE SECURITIES
(Cost $340,616,048)
ASSET-BACKED SECURITIES - 1.7%
BankAmerica Manufacturing Aaa 2,390,000 2,390,747
Housing Contract 6.2% 4/10/09
Boatmens Auto Trust 6.35% A2 430,000 430,086
3/25/02
Case Equipment Loan Trust Aaa 1,000,000 1,010,156
6.45% 8/18/03
Cit Marine Trust 5.8% 4/15/10 Aaa 5,000,000 4,962,500
CS First Boston Mortgage Aaa 5,000,000 5,066,407
Securities Corp. 7% 3/15/27
Green Tree Financial Corp. Aaa 250,526 250,759
6.45% 5/15/27
Green Tree Lease Finance LLC A 5,000,000 4,956,550
6.66% 10/20/04
Key Auto Finance Trust 6.65% Baa3 500,261 503,935
10/15/03
KeyCorp Auto Grantor Trust A3 16,448 16,450
5.8% 7/15/00
Olympic Automobile Aaa 776,516 777,487
Receivables Trust 6.125%
11/15/04
Premier Auto Trust 6% 5/6/00 Aaa 96,054 96,084
Union Acceptance Corp. 7.075% Baa2 89,182 89,321
7/10/02
WFS Financial Owner Trust Aaa 2,370,000 2,389,256
6.9% 12/20/03
TOTAL ASSET-BACKED SECURITIES 22,939,738
(Cost $22,987,645)
COMMERCIAL MORTGAGE
SECURITIES - 3.6%
MOODY'S RATINGS (UNAUDITED) (C) PRINCIPAL AMOUNT VALUE (NOTE 1)
Allied Capital Commercial Aaa $ 3,166,252 $ 3,168,231
Mortgage Trust sequential
pay Series 1998-1 Class A,
6.31% 1/25/28 (a)
Commercial Resecuritization Aaa 4,000,000 3,898,125
Trust 6.74% 1/1/09 (a)
Equitable Life Assurance Aaa 16,000,000 16,683,520
Society of the United States
(The) sequential pay Series
174 Class A1, 7.24% 5/15/06
(a)
First Union-Lehman Brothers Aa2 15,000,000 15,023,438
Commercial MortgageTr
sequential pay Series
1997-C2 Class B, 6.79%
11/18/29
GS Mortgage Securities Corp.
II:
Series 1997-GL Class A2-B, Aaa 3,000,000 3,081,990
6.86% 7/13/30
7.1634% 11/13/13 (a) Baa2 6,000,000 5,974,800
TOTAL COMMERCIAL MORTGAGE 47,830,104
SECURITIES
(Cost $48,052,272)
FOREIGN GOVERNMENT AND
GOVERNMENT AGENCY
OBLIGATIONS (D) - 1.5%
Korean Republic 8.875% 4/15/08 Baa3 4,240,000 4,489,100
Newfoundland Province 11.625% Baa1 4,000,000 5,454,000
10/15/07
Quebec Province yankee 7.5% A2 10,000,000 10,908,500
7/15/23
TOTAL FOREIGN GOVERNMENT AND 20,851,600
GOVERNMENT AGENCY OBLIGATIONS
(Cost $21,057,560)
CASH EQUIVALENTS - 5.1%
MATURITY AMOUNT
Investments in repurchase 68,696,811 68,669,000
agreements (U.S. Treasury
obligations), in a joint
trading account at 4.86%,
dated 2/26/99 due 3/1/99
TOTAL INVESTMENT IN $ 1,343,232,460
SECURITIES - 100%
(Cost $1,357,357,626)
</TABLE>
LEGEND
(a) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $104,322,176 or 8.1% of net assets.
(b) The coupon rate shown on floating or adjustable rate securities
represents the rate at period end.
(c) Standard & Poor's credit ratings are used in the absence of a
rating by Moody's Investors Service, Inc.
(d) For foreign government obligations not individually rated by S&P
or Moody's, the ratings listed are assigned to securities by FMR, the
fund's investment adviser, based principally on S&P and Moody's
ratings of the sovereign credit of the issuing government.
OTHER INFORMATION
The composition of long-term debt holdings as a percentage of total
value of investments in securities, is as follows (ratings are
unaudited):
MOODY'S RATINGS S&P RATINGS
Aaa, Aa, A 80.7% AAA, AA, A 75.1%
Baa 13.6% BBB 13.0%
Ba 0.0% BB 0.0%
B 0.0% B 0.0%
Caa 0.0% CCC 0.0%
Ca, C 0.0% CC, C 0.0%
D 0.0%
The percentage not rated by Moody's or S&P amounted to 0.2%. FMR has
determined that unrated debt securities that are lower quality account
for 0.0% of the total value of investment in securities.
INCOME TAX INFORMATION
At February 28, 1999, the aggregate cost of investment securities for
income tax purposes was $1,357,526,861. Net unrealized depreciation
aggregated $14,294,401, of which $4,528,488 related to appreciated
investment securities and $18,822,889 related to depreciated
investment securities.
The fund hereby designates approximately $2,477,000 as capital gain
dividend for the purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
ASSETS
Investment in securities, at $ 1,343,232,460
value (including repurchase
agreements of $68,669,000)
(cost $1,357,357,626) - See
accompanying schedule
Cash 329,598
Receivable for investments 36,506,975
sold
Receivable for fund shares 2,459,165
sold
Interest receivable 13,212,417
TOTAL ASSETS 1,395,740,615
LIABILITIES
Payable for investments $ 97,796,585
purchased
Payable for fund shares 2,746,473
redeemed
Distributions payable 217,771
Accrued management fee 36,582
Other payables and accrued 422,707
expenses
TOTAL LIABILITIES 101,220,118
NET ASSETS $ 1,294,520,497
Net Assets consist of:
Paid in capital $ 1,297,886,133
Undistributed net investment 671,154
income
Accumulated undistributed net 10,088,376
realized gain (loss) on
investments
Net unrealized appreciation (14,125,166)
(depreciation) on investments
NET ASSETS, for 119,896,406 $ 1,294,520,497
shares outstanding
NET ASSET VALUE, offering $10.80
price and redemption price
per share ($1,294,520,497
(divided by) 119,896,406
shares)
STATEMENT OF OPERATIONS
YEAR ENDED FEBRUARY 28, 1999
INVESTMENT INCOME $ 70,581,360
Interest
EXPENSES
Management fee $ 3,396,909
Transfer agent fees 1,975,304
Accounting fees and expenses 302,244
Non-interested trustees' 6,558
compensation
Custodian fees and expenses 82,618
Registration fees 236,518
Audit 47,406
Legal 5,416
Miscellaneous 2,842
Total expenses before 6,055,815
reductions
Expense reductions (2,750,407) 3,305,408
NET INVESTMENT INCOME 67,275,952
REALIZED AND UNREALIZED GAIN 21,138,494
(LOSS)
Net realized gain (loss) on
investment securities
Change in net unrealized (28,341,323)
appreciation (depreciation)
on investment securities
NET GAIN (LOSS) (7,202,829)
NET INCREASE (DECREASE) IN $ 60,073,123
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED FEBRUARY 28, 1999 YEAR ENDED FEBRUARY 28, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 67,275,952 $ 44,140,856
income
Net realized gain (loss) 21,138,494 1,098,669
Change in net unrealized (28,341,323) 16,816,828
appreciation (depreciation)
NET INCREASE (DECREASE) IN 60,073,123 62,056,353
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (66,591,808) (43,795,995)
from net investment income
Share transactions Net 932,426,505 449,415,394
proceeds from sales of shares
Reinvestment of distributions 63,154,893 40,059,028
Cost of shares redeemed (509,618,506) (261,038,455)
NET INCREASE (DECREASE) IN 485,962,892 228,435,967
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 479,444,207 246,696,325
IN NET ASSETS
NET ASSETS
Beginning of period 815,076,290 568,379,965
End of period (including $ 1,294,520,497 $ 815,076,290
under (over) distribution of
net investment income of
$671,154 and $(2,972),
respectively)
OTHER INFORMATION
Shares
Sold 85,262,371 41,971,450
Issued in reinvestment of 5,779,048 3,766,217
distributions
Redeemed (46,605,481) (24,486,211)
Net increase (decrease) 44,435,938 21,251,456
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 10.800 $ 10.480 $ 10.710 $ 10.250 $ 10.830
of period
Income from Investment .690 B .738 B .739 B .755 .718
Operations Net investment
income
Net realized and unrealized (.003) .316 (.235) .460 (.542)
gain (loss)
Total from investment .687 1.054 .504 1.215 .176
operations
Less Distributions
From net investment income (.687) (.734) (.734) (.755) (.756)
Net asset value, end of $ 10.800 $ 10.800 $ 10.480 $ 10.710 $ 10.250
period
TOTAL RETURN A 6.48% 10.41% 4.93% 12.13% 1.90%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 1,294,520 $ 815,076 $ 568,380 $ 475,646 $ 354,682
(000 omitted)
Ratio of expenses to average .32% C .32% C .32% C .32% C .32% C
net assets
Ratio of expenses to average .31% D .31% D .31% D .31% D .32%
net assets after expense
reductions
Ratio of net investment 6.35% 6.98% 7.05% 7.11% 7.58%
income to average net assets
Portfolio turnover rate 184% 97% 65% 128% 73%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
E FOR THE YEAR ENDED FEBRUARY 29.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Fidelity U.S. Bond Index Fund (the fund) is a fund of Fidelity Concord
Street 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
financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make
certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:
SECURITY VALUATION. Securities are valued based upon a computerized
matrix system and/or appraisals by a pricing service, both of which
consider market transactions and dealer-supplied valuations.
Securities (including restricted securities) for which market
quotations are not readily available are valued at their fair value as
determined in good faith under consistently applied procedures under
the general supervision of the Board of Trustees. Short-term
securities with remaining maturities of sixty days or less for which
quotations are not readily available are valued at amortized cost or
original cost plus accrued interest, both of which approximate current
value.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for its fiscal year. The schedule of investments
includes information regarding income taxes under the caption "Income
Tax Information."
INVESTMENT INCOME. Interest income, which includes accretion of
original issue discount, is accrued as earned.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are declared daily and
paid monthly from net investment income. Distributions from realized
gains, if any, are recorded on the ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for paydown gains/losses on certain securities, market
discount and losses deferred due to wash sales and excise tax
regulations. 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.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments may include temporary book and tax
basis differences that will reverse in a subsequent period. Any
taxable income or gain remaining at fiscal year end is distributed in
the following year.
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the
Securities and Exchange Commission, the fund, along with other
affiliated entities of Fidelity Management & Research Company (FMR),
may transfer uninvested cash balances into one or more joint trading
accounts. These balances are invested in one or more repurchase
agreements for U.S. Treasury or Federal Agency obligations.
REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency
securities are transferred to an account of the fund, or to the Joint
Trading Account, at a bank custodian. The securities are
marked-to-market daily and maintained at a value at least equal to the
principal amount of the repurchase agreement (including accrued
interest). FMR, the fund's investment adviser, is responsible for
determining that the value of the underlying securities remains in
accordance with the market value requirements stated above.
DELAYED DELIVERY TRANSACTIONS. The fund may purchase or sell
securities on a delayed delivery 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 may receive compensation for interest forgone in
the purchase of a delayed delivery security. With respect to purchase
commitments, the fund identifies securities as segregated in its
records with a value at least equal to the amount of the commitment.
Losses may arise due to changes in the market value of the underlying
securities or if the counterparty does not perform under the contract.
RESTRICTED SECURITIES. The fund is permitted to invest in securities
that are subject to legal or contractual restrictions on resale. These
securities generally may be resold in transactions exempt from
registration or to the public if the securities are registered.
Disposal of these securities may involve time-consuming negotiations
and expense, and prompt sale at an acceptable price may be difficult.
At the end of the period, the fund had no investments in restricted
securities (excluding 144A issues).
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $2,402,164,343 and $1,925,043,880, respectively, of which
U.S. government and government agency obligations aggregated
$2,024,225,623 and $1,676,695,817, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, FMR receives a fee
that is computed daily at an annual rate of .32% of the fund's average
net assets.
SUB-ADVISER FEE. FMR, on behalf of the fund, has entered into a
sub-advisory agreement(effective 1/1/99) with Fidelity Investments
Money Management, Inc. (FIMM), a wholly owned subsidiary of FMR. For
its services, FIMM receives a fee from FMR of 50% of the management
fee payable to FMR. The fee is paid prior to any voluntary expense
reimbursements which may be in effect.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations
Company, Inc. (FIIOC), an affiliate of FMR, is the fund's transfer,
dividend disbursing and shareholder servicing agent. FIIOC receives
account fees and asset-based fees that vary according to account size
and type of account. FIIOC pays for typesetting, printing and mailing
of all shareholder reports, except proxy statements. For the period,
the transfer agent fees were equivalent to an annual rate of .19% of
average net assets.
ACCOUNTING FEES. Fidelity Service Company, Inc. (FSC), an affiliate of
FMR, maintains the fund's accounting records. The fee is based on the
level of average net assets for the month plus out-of-pocket expenses.
5. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a lender.
The maximum loan and the average daily loan balances during the period
for which the loans were outstanding amounted to $29,310,000 and
$24,531,000, respectively. The weighted average interest rate was
5.44%. Interest earned from the interfund lending program amounted to
$14,829 and is included in interest income on the Statement of
Operations.
6. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions and extraordinary
expenses) above an annual rate of .32% of average net assets. For the
period, the reimbursement reduced the expenses by $2,663,652.
In addition, the fund has entered into arrangements with its custodian
and transfer agent whereby credits realized as a result of uninvested
cash balances were used to reduce a portion of the fund's expenses.
During the period, the fund's custodian and transfer agent fees were
reduced by $6,795 and $79,960, respectively, under these arrangements.
7. BENEFICIAL INTEREST.
At the end of the period, two shareholders were each record owners of
more than 10% of the total outstanding shares of the fund, totaling
18%.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Concord Street Trust and the Shareholders
of Fidelity U.S. Bond Index Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Fidelity U.S. Bond Index Fund (a fund of Fidelity Concord Street
Trust) at February 28, 1999, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Fidelity U.S. Bond Index Fund's management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at February 28, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 15, 1999
DISTRIBUTIONS
The Board of Trustees of U.S. Bond Index Fund voted to pay on April 5,
1999 to shareholders of record at the opening of business on April 1,
1999, a distribution of $.06 per share derived from capital gains
realized from sales of portfolio securities.
A total of 34.26% of the dividends distributed during the fiscal year
was derived from interest on U.S. Government securities which is
generally exempt from state income tax.
The fund will notify shareholders in January 2000 of the applicable
percentage for use in preparing 1999 income tax returns.
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Fidelity Investments
Money Management, Inc.
Merrimack, NH
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Fred L. Henning, Jr., VICE PRESIDENT
Dwight D. Churchill, VICE PRESIDENT
Thomas J. Silvia, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
Stanley N. Griffith, ASSISTANT
VICE PRESIDENT
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
Thomas J. Simpson, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
* INDEPENDENT TRUSTEES
UBI-PRO-0499 74571
1.701176.101
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Investments Institutional Operations Company, Inc.
Boston, MA
CUSTODIAN
The Bank of New York
New York, NY
(fidelity_logo_graphic)(registered trademark)
Corporate Headquarters
82 Devonshire St., Boston, MA 02109
www.fidelity.com
CONTENTS
PERFORMANCE A-2 How the fund has done over
time.
FUND TALK A-4 The manager's review of fund
performance, strategy and
outlook.
INVESTMENT CHANGES A-7 A summary of the major shifts
in the fund's investments
over the past six months.
INVESTMENTS A-8 A complete list of the fund's
investments with their
market values.
FINANCIAL STATEMENTS A-28 Statements of assets and
liabilities, operations, and
changes in net assets, as
well as financial highlights.
NOTES A-32 Notes to the financial
statements.
REPORT OF INDEPENDENT A-37 The auditors' opinion.
ACCOUNTANTS
DISTRIBUTIONS A-38
OF SPECIAL NOTE A-39
PERFORMANCE: THE BOTTOM LINE
There are several ways to evaluate a fund's historical performance.
You can look at the total percentage change in value, the average
annual percentage change or the growth of a hypothetical $100,000
investment. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value). If Fidelity had not reimbursed certain fund
expenses, the total returns would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
Spartan US Equity Index 19.50% 191.66% 444.37%
S&P 500 (registered trademark) 19.74% 194.91% 459.21%
S&P 500 Index Objective Funds 19.21% 188.79% 431.46%
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year, five years or 10
years. For example, if you had invested $1,000 in a fund that had a 5%
return over the past year, the value of your investment would be
$1,050. You can compare the fund's returns to the performance of the
Standard & Poor's 500 Index - a market capitalization-weighted index
of common stocks. To measure how the fund's performance stacked up
against its peers, you can compare it to the S&P 500 index objective
funds average, which reflects the performance of mutual funds with
similar objectives tracked by Lipper Inc. The past one year average
represents a peer group of 99 mutual funds. These benchmarks include
reinvested dividends and capital gains, if any, and exclude the effect
of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, 1999 PAST 1 YEAR PAST 5 YEARS PAST 10 YEARS
Spartan US Equity Index 19.50% 23.87% 18.46%
S&P 500 19.74% 24.15% 18.78%
S&P 500 Index Objective Funds 19.21% 23.63% 18.17%
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year. (Note: Lipper calculates average annual total
returns by annualizing each fund's total return, then taking an
arithmetic average. This may produce a different figure than that
obtained by averaging the cumulative total returns and annualizing the
result.)
$100,000 OVER 10 YEARS
Spartan U.S. Equity Index S&P 500
00650 SP001
1989/02/28 100000.00 100000.00
1989/03/31 102318.73 102330.00
1989/04/30 107708.66 107640.93
1989/05/31 112020.60 112000.38
1989/06/30 111284.29 111361.98
1989/07/31 121409.26 121417.97
1989/08/31 123669.30 123797.76
1989/09/30 123130.64 123290.19
1989/10/31 120311.55 120429.86
1989/11/30 122766.89 122886.63
1989/12/31 125588.63 125835.91
1990/01/31 117110.46 117392.32
1990/02/28 118601.13 118906.68
1990/03/31 121682.15 122057.71
1990/04/30 118677.65 119006.26
1990/05/31 130226.18 130609.37
1990/06/30 129286.59 129721.23
1990/07/31 128813.71 129306.12
1990/08/31 116991.60 117616.85
1990/09/30 111191.04 111888.91
1990/10/31 110714.23 111407.79
1990/11/30 117866.32 118604.73
1990/12/31 121025.04 121913.80
1991/01/31 126328.92 127229.24
1991/02/28 135297.31 136326.13
1991/03/31 138581.52 139625.22
1991/04/30 138872.86 139960.33
1991/05/31 144796.81 146006.61
1991/06/30 138173.53 139319.51
1991/07/31 144529.71 145811.80
1991/08/31 147952.27 149267.54
1991/09/30 145421.86 146774.77
1991/10/31 147391.01 148741.55
1991/11/30 141385.10 142747.27
1991/12/31 157527.71 159077.55
1992/01/31 154513.79 156118.71
1992/02/29 156523.07 158148.25
1992/03/31 153404.07 155064.36
1992/04/30 157853.50 159623.26
1992/05/31 158662.48 160405.41
1992/06/30 156232.24 158015.37
1992/07/31 162644.38 164478.20
1992/08/31 159285.64 161106.40
1992/09/30 161115.10 163007.45
1992/10/31 161524.80 163577.98
1992/11/30 167055.77 169155.99
1992/12/31 169112.45 171236.60
1993/01/31 170454.62 172674.99
1993/02/28 172725.97 175023.37
1993/03/31 176353.66 178716.36
1993/04/30 171989.04 174391.43
1993/05/31 176586.56 179065.12
1993/06/30 177011.38 179584.41
1993/07/31 176275.59 178866.07
1993/08/31 183002.86 185645.09
1993/09/30 181532.50 184215.63
1993/10/31 185232.93 188028.89
1993/11/30 183435.57 186242.62
1993/12/31 185677.29 188496.15
1994/01/31 191913.12 194905.02
1994/02/28 186644.91 189623.09
1994/03/31 178427.08 181355.53
1994/04/30 180703.87 183676.88
1994/05/31 183634.20 186689.18
1994/06/30 179151.72 182115.29
1994/07/31 185047.03 188088.68
1994/08/31 192470.74 195800.31
1994/09/30 187758.13 191003.20
1994/10/31 191930.53 195300.78
1994/11/30 184903.32 188187.92
1994/12/31 187706.07 190978.75
1995/01/31 192479.20 195930.83
1995/02/28 200027.40 203566.25
1995/03/31 205825.43 209573.49
1995/04/30 211856.69 215745.43
1995/05/31 220237.09 224368.78
1995/06/30 225302.16 229580.86
1995/07/31 232714.89 237193.76
1995/08/31 233276.46 237789.12
1995/09/30 243050.41 247823.82
1995/10/31 242147.71 246939.09
1995/11/30 252754.37 257779.72
1995/12/31 257492.27 262744.55
1996/01/31 266276.89 271688.38
1996/02/29 268786.79 274206.93
1996/03/31 271434.36 276847.54
1996/04/30 275213.51 280928.28
1996/05/31 282226.05 288173.42
1996/06/30 283384.14 289271.36
1996/07/31 270791.85 276491.35
1996/08/31 276452.60 282322.55
1996/09/30 291947.51 298211.66
1996/10/31 299957.20 306436.34
1996/11/30 322593.29 329599.86
1996/12/31 316029.81 323070.49
1997/01/31 335730.37 343255.94
1997/02/28 338310.20 345947.06
1997/03/31 324292.21 331732.10
1997/04/30 343554.11 351536.50
1997/05/31 364472.26 372938.05
1997/06/30 380647.26 389645.67
1997/07/31 410923.32 420649.78
1997/08/31 387889.77 397084.98
1997/09/30 408944.60 418833.32
1997/10/31 395356.82 404844.29
1997/11/30 413473.86 423584.53
1997/12/31 420449.31 430857.48
1998/01/31 425137.00 435622.76
1998/02/28 455546.86 467039.87
1998/03/31 478693.33 490956.98
1998/04/30 483480.84 495896.01
1998/05/31 474966.71 487371.56
1998/06/30 494216.02 507168.59
1998/07/31 488967.49 501767.25
1998/08/31 418295.45 429221.74
1998/09/30 445039.98 456717.68
1998/10/31 481177.28 493867.10
1998/11/30 510332.12 523800.38
1998/12/31 540187.77 553981.76
1999/01/31 562060.71 577149.28
1999/02/26 544365.75 559211.48
IMATRL PRASUN SHR__CHT 19990228 19990309 112456 R00000000000123
$100,000 OVER 10 YEARS: Let's say hypothetically that $100,000 was
invested in Spartan US Equity Index Fund on February 28, 1989. As the
chart shows, by February 28, 1999, the value of the investment would
have grown to $544,366 - a 444.37% increase on the initial investment.
For comparison, look at how the Standard & Poor's 500 Index did over
the same period. With dividends and capital gains, if any, reinvested,
the same $100,000 would have grown to $559,211 - a 459.21% increase.
(checkmark)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
long-term growth and
short-term volatility. 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.
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Frank Salerno)
An interview with Frank Salerno, Portfolio Manager of Spartan
U.S. Equity Index Fund for Bankers Trust, sub-adviser of the fund
Q. HOW DID THE FUND PERFORM, FRANK?
A. For the 12 months that ended February 28, 1999, the fund posted a
total return of 19.50%. The fund's performance compares well with the
19.74% return for the Standard & Poor's 500 Index and the S&P 500
index objective funds average tracked by Lipper Inc., which returned
19.21% during the same period.
Q. HOW WOULD YOU CHARACTERIZE THE MARKET ENVIRONMENT DURING THE
PERIOD?
A. During the first half of the 12-month period, fund performance
suffered in response to extreme volatility and uncertainty in global
markets. While financial conditions remained positive on the home
front amidst low interest rates, consistently non-existent signs of
inflation and strong consumer spending, U.S. investors became
increasingly concerned about the impact of the Asian crisis and
problems in emerging markets. During the six-month period that ended
August 31, 1998, the fund and the S&P 500 posted total returns of
- -8.18% and -8.10%, respectively. This gloomy environment, however, was
quickly reversed in the last few months of 1998 as the Federal Reserve
Board stepped in and cut interest rates three times in an effort to
restore confidence and liquidity to the markets. While the
large-cap-oriented S&P 500 index enjoyed the bulk of the gains, by the
end of 1998 the market had staged an impressive comeback. For the
fourth consecutive calendar year, the S&P 500 barreled ahead with a
20%-plus gain. Despite some concerns over Brazil's currency
devaluation and jitters about corporate earnings, the beat went on in
1999 as most U.S. stock indexes advanced.
Q. LET'S TALK ABOUT THE PERFORMANCE OF SOME OF THE FUND'S INDUSTRY
SECTORS. AT APPROXIMATELY 20%, THE TECHNOLOGY SECTOR WAS THE FUND'S
LARGEST INDUSTRY WEIGHTING AND CONTRIBUTED SIGNIFICANTLY TO
PERFORMANCE. WHY DID THIS SECTOR PERFORM SO WELL DURING THE PERIOD?
A. While technology companies such as Microsoft, Dell and Intel faced
a host of challenges during the period, ranging from the Year 2000
(Y2K) problem to the Asian crisis, these stocks continued to surge
ahead with strong financial results and impressive returns. Many
computer software and hardware companies, as well as a range of other
technology stocks, posted strong results as demand for computers
remained solid and Internet commerce skyrocketed.
Q. THE SECOND LARGEST SECTOR WEIGHTING FOR THE INDEX AND FUND WAS
FINANCE. HOW DID THESE STOCKS PERFORM?
A. Financial stocks were among the best performers early in the
period, spurred by a number of megamergers, such as Travelers Group
with Citicorp, Nationsbank with BankAmerica and Norwest with Wells
Fargo. In the third quarter of 1998, however, investors purged the
majority of financial services shares, fearing not just an earnings
stumble but a potential global financial meltdown. Nevertheless, it
turned out that the selling was overdone as financial stocks were the
primary beneficiaries following the three interest-rate cuts by the
Federal Reserve Board.
Q. HEALTH CARE STOCKS PERFORMED WELL. CAN YOU PROVIDE SOME BACKGROUND
ON THIS GROUP?
A. With the exception of HMOs and hospital stocks, the health care
sector - at roughly 12% of the fund's investments - performed well.
Investors continued to bid up prices for many drug, biotechnology and
medical equipment stocks due to their favorable growth prospects. The
major factors for the bullish outlook are an aging population with
increasing demand for health care products and an increasing supply of
innovative, effective and safe new drugs. Most importantly, the
favorable business outlook for these companies was combined with
strong corporate earnings.
Q. WE'VE TALKED ABOUT INDUSTRY SECTORS. CAN YOU TELL US ABOUT SOME
SPECIFIC STOCKS THAT HELPED AND DETRACTED FROM FUND PERFORMANCE?
A. Microsoft, the fund's largest holding, essentially doubled in value
during the period. Despite the negative publicity surrounding the
Justice Department's antitrust suit, the stock performed extremely
well in response to robust earnings growth. The fund's second-largest
holding, General Electric, also contributed solidly to total return as
the company produced strong earnings growth and a dividend increase.
On the negative side, the fund held approximately 5% of its
investments in energy stocks at the end of the period. With energy
prices hitting a 12-year low, the majority of these stocks hurt fund
performance. Energy service companies such as Schlumberger, which are
the most sensitive to energy prices, were the most significant
detractors.
Q. WHAT'S YOUR OUTLOOK, FRANK?
A. Since the beginning of this bull market that began sometime in
1990, the S&P 500 has risen nearly 300%. What makes this rally
remarkable is that while the S&P 500 has risen approximately 100% over
the past three years, the S&P 500's earnings have risen just 20%
during that same time. This situation tells me that one of two things
may be true. Either we are experiencing an unprecedented economic boom
or we may be in the midst of a speculative bubble. While the market
was helped by falling interest rates and the economy remained healthy
last year, I think there are a number of hurdles that could trip up
the market in 1999. First, with stock valuations at record high
levels, any earnings disappointments could result in weakness for the
broader market. Second, the possibility of deflation could hurt
corporate profits and the markets. Finally, the potential Y2K computer
glitch could make investors nervous. Whether none or all of the
aforementioned scenarios have an impact on stock prices, it seems
global excess capacity and ongoing weakness overseas could provide a
difficult backdrop in which to produce significant earnings growth in
1999.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
(checkmark)FUND FACTS
GOAL: total return that
corresponds to that of the
Standard & Poor's 500 Index
START DATE: February 17,
1988
SIZE: as of February 28,
1999, more than $15 billion
MANAGER: Frank Salerno,
since 1997
FRANK SALERNO ON CHANGES
TO THE S&P 500:
"The S&P 500 is an index of 500
stocks chosen to be a
representation of the broader
market. Periodically, companies will
be added or deleted from the index.
Usually, this is based on such events
as acquisitions, spin-offs or shifts
in asset size."
Here are some of the changes to the
index in the past few months
involving some well-known
companies:
(solid bullet) January 12, 1999: HBO & Co.
was removed and replaced by
McKesson HBOC after it was
acquired by McKesson.
NOTE TO SHAREHOLDERS:
On November 30, 1998, Bankers
Trust Corporation entered into an
Agreement and Plan of Merger
with Deutsche Bank AG. The
merger is contingent upon various
regulatory approvals. At a meeting
held on March 18, 1999, the fund's
Board of Trustees approved a new
sub-advisory agreement among
the fund, Fidelity Management &
Research Co. and Bankers Trust
or its successor by merger that
would be effective at the time of
the merger. This agreement will
be presented to the fund's
shareholders for approval.
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF FEBRUARY
28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE STOCKS 6 MONTHS AGO
Microsoft Corp. 3.7 3.1
General Electric Co. 3.2 3.4
Intel Corp. 2.0 1.6
Merck & Co., Inc. 1.9 1.8
Wal-Mart Stores, Inc. 1.9 1.7
Pfizer, Inc. 1.7 1.6
Exxon Corp. 1.6 2.1
International Business 1.6 1.4
Machines Corp.
Coca-Cola Co. (The) 1.6 2.1
Cisco Systems, Inc. 1.5 1.1
TOP TEN MARKET SECTORS AS OF
FEBRUARY 28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE MARKET SECTORS 6
MONTHS AGO
TECHNOLOGY 19.4 15.5
FINANCE 15.9 16.4
HEALTH 12.3 12.4
UTILITIES 11.1 10.9
NONDURABLES 8.3 9.8
RETAIL & WHOLESALE 6.5 5.8
INDUSTRIAL MACHINERY & 5.2 5.7
EQUIPMENT
ENERGY 5.1 7.2
MEDIA & LEISURE 4.8 4.4
BASIC INDUSTRIES 3.3 4.0
</TABLE>
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
<TABLE>
<CAPTION>
<S> <C> <C> <C>
COMMON STOCKS - 97.8%
SHARES VALUE (NOTE 1) (000S)
AEROSPACE & DEFENSE - 1.5%
AEROSPACE & DEFENSE - 1.2%
AlliedSignal, Inc. 844,541 $ 34,943
Boeing Co. 1,536,171 54,630
Goodrich (B.F.) Co. 106,519 3,635
Lockheed Martin Corp. 593,230 22,357
Rockwell International Corp. 294,161 13,072
Textron, Inc. 238,489 18,602
United Technologies Corp. 353,578 43,799
191,038
DEFENSE ELECTRONICS - 0.2%
Northrop Grumman Corp. 115,268 7,183
Raytheon Co. Class B 522,936 27,944
35,127
SHIP BUILDING & REPAIR - 0.1%
General Dynamics Corp. 193,742 11,709
TOTAL AEROSPACE & DEFENSE 237,874
BASIC INDUSTRIES - 3.3%
CHEMICALS & PLASTICS - 1.7%
Air Products & Chemicals, 341,740 10,978
Inc.
Ashland, Inc. 91,924 4,091
Avery Dennison Corp. 169,991 9,126
Dow Chemical Co. 340,051 33,453
du Pont (E.I.) de Nemours & 1,721,015 88,310
Co.
Eastman Chemical Co. 115,727 5,461
Engelhard Corp. 204,693 3,646
FMC Corp. (a) 51,072 2,614
Great Lakes Chemical Corp. 87,411 3,404
Hercules, Inc. 182,771 5,060
Monsanto Co. 958,752 43,683
Morton International, Inc. 231,057 8,347
Nalco Chemical Co. 105,957 2,980
PPG Industries, Inc. 265,023 13,798
Praxair, Inc. 237,310 8,291
Raychem Corp. 140,412 3,203
Rohm & Haas Co. 247,383 7,731
Sealed Air Corp. (a) 130,405 6,618
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
BASIC INDUSTRIES - CONTINUED
CHEMICALS & PLASTICS -
CONTINUED
Union Carbide Corp. 226,902 $ 9,984
W.R. Grace & Co. (a) 110,658 1,487
272,265
IRON & STEEL - 0.2%
Aeroquip-Vickers, Inc. 41,933 2,374
Allegheny Teledyne, Inc. 279,540 5,766
Bethlehem Steel Corp. (a) 187,226 1,650
Nucor Corp. 126,811 5,651
USX-U.S. Steel Group 177,025 4,481
Worthington Industries, Inc. 126,606 1,606
21,528
METALS & MINING - 0.3%
Alcan Aluminium Ltd. 326,632 7,929
Alcoa, Inc. 547,218 22,162
ASARCO, Inc. 66,211 935
Cyprus Amax Minerals Co. 201,370 2,265
Freeport-McMoRan Copper & 188,465 1,779
Gold, Inc. Class B
Inco Ltd. 210,767 2,642
Phelps Dodge Corp. 90,223 4,376
Reynolds Metals Co. 126,032 5,388
47,476
PACKAGING & CONTAINERS - 0.2%
Ball Corp. 37,607 1,575
Bemis Co., Inc. 69,234 2,358
Corning, Inc. 355,385 19,013
Crown Cork & Seal Co., Inc. 209,119 5,803
Owens-Illinois, Inc. (a) 227,491 5,446
Tupperware Corp. 87,582 1,533
35,728
PAPER & FOREST PRODUCTS - 0.9%
Boise Cascade Corp. 98,826 3,070
Champion International Corp. 144,845 5,359
Fort James Corp. 335,565 10,025
Georgia-Pacific Corp. 138,309 10,131
International Paper Co. 479,102 20,122
Kimberly-Clark Corp. 849,740 40,150
Louisiana-Pacific Corp. 182,284 3,349
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS -
CONTINUED
Mead Corp. 152,144 $ 4,631
Potlatch Corp. 41,416 1,437
Temple-Inland, Inc. 80,871 4,847
Union Camp Corp. 102,623 6,863
Westvaco Corp. 143,820 3,218
Weyerhaeuser Co. 298,266 16,628
Willamette Industries, Inc. 161,301 5,877
135,707
TOTAL BASIC INDUSTRIES 512,704
CONSTRUCTION & REAL ESTATE -
0.3%
BUILDING MATERIALS - 0.2%
Armstrong World Industries, 62,807 3,089
Inc.
Crane Co. 99,186 2,721
Fortune Brands, Inc. 275,889 8,311
Masco Corp. 521,504 13,689
Owens-Corning 77,574 2,468
Sherwin-Williams Co. 256,070 6,162
36,440
CONSTRUCTION - 0.1%
Centex Corp. 89,556 3,297
Fleetwood Enterprises, Inc. 47,652 1,546
Kaufman & Broad Home Corp. 66,778 1,503
Pulte Corp. 69,126 1,663
8,009
ENGINEERING - 0.0%
EG & G, Inc. 71,658 1,899
Fluor Corp. 115,029 4,048
Foster Wheeler Corp. 60,386 755
6,702
TOTAL CONSTRUCTION & REAL 51,151
ESTATE
DURABLES - 2.5%
AUTOS, TIRES, & ACCESSORIES -
1.8%
AutoZone, Inc. (a) 235,935 8,258
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
DURABLES - CONTINUED
AUTOS, TIRES, & ACCESSORIES -
CONTINUED
Cooper Tire & Rubber Co. 141,804 $ 2,801
Cummins Engine Co., Inc. 61,025 2,502
Dana Corp. 268,321 10,129
Danaher Corp. 196,600 9,486
Eaton Corp. 110,563 7,670
Ford Motor Co. 1,723,532 102,227
General Motors Corp. 1,002,584 82,776
Genuine Parts Co. 286,260 8,570
Goodyear Tire & Rubber Co. 232,192 10,739
ITT Industries, Inc. 172,184 6,726
Johnson Controls, Inc. 128,668 7,913
NACCO Industries, Inc. Class A 9,614 846
Navistar International Corp. 76,256 3,279
(a)
PACCAR, Inc. 124,447 5,211
Pep Boys-Manny, Moe & Jack 84,900 1,549
Snap-On, Inc. 89,941 2,541
TRW, Inc. 210,112 9,928
283,151
CONSUMER DURABLES - 0.3%
Minnesota Mining & 608,574 45,073
Manufacturing Co.
CONSUMER ELECTRONICS - 0.2%
Black & Decker Corp. 147,252 7,179
Maytag Corp. 140,857 7,897
Newell Co. 281,474 11,963
Whirlpool Corp. 109,238 4,752
31,791
TEXTILES & APPAREL - 0.2%
Fruit of the Loom, Inc. Class 98,147 1,245
A (a)
Liz Claiborne, Inc. 95,425 3,215
NIKE, Inc. Class B 306,338 16,427
Reebok International Ltd. (a) 72,827 1,174
Russell Corp. 52,433 1,022
Springs Industries, Inc. 17,530 583
Class A
VF Corp. 181,056 8,713
32,379
TOTAL DURABLES 392,394
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
ENERGY - 5.1%
ENERGY SERVICES - 0.5%
Baker Hughes, Inc. 467,406 $ 8,413
Halliburton Co. 711,579 20,102
Helmerich & Payne, Inc. 75,920 1,238
McDermott International, Inc. 88,175 1,758
Rowan Companies, Inc. (a) 129,119 1,114
Schlumberger Ltd. 836,400 40,618
73,243
OIL & GAS - 4.6%
Amerada Hess Corp. 134,267 6,092
Anadarko Petroleum Corp. 223,908 6,157
Apache Corp. 149,417 2,979
Atlantic Richfield Co. 476,164 26,010
Burlington Resources, Inc. 299,505 9,696
Chevron Corp. 978,115 75,193
Coastal Corp. (The) 322,928 10,334
Exxon Corp. 3,725,282 247,964
Kerr-McGee Corp. 107,609 3,074
Mobil Corp. 1,196,045 99,496
Occidental Petroleum Corp. 549,442 8,276
Oryx Energy Co. (a) 153,929 1,597
Phillips Petroleum Co. 377,660 14,611
Royal Dutch Petroleum Co. (NY 3,292,638 144,464
Registry Gilder 1.25)
Sunoco, Inc. 129,151 3,931
Texaco, Inc. 850,698 39,611
Union Pacific Resources 392,963 3,512
Group, Inc.
Unocal Corp. 384,503 10,838
USX-Marathon Group 422,985 8,751
722,586
TOTAL ENERGY 795,829
FINANCE - 15.9%
BANKS - 6.8%
Bank of New York Co., Inc. 1,217,558 42,538
Bank One Corp. 1,831,724 98,455
BankAmerica Corp. 2,629,103 171,713
BankBoston Corp. 483,500 19,552
Bankers Trust Corp. 67,737 5,893
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FINANCE - CONTINUED
BANKS - CONTINUED
BB&T Corp. 417,500 $ 15,813
Capital One Financial Corp. 101,800 12,992
Chase Manhattan Corp. 1,317,058 104,871
Comerica, Inc. 227,431 15,067
Fifth Third Bancorp 423,389 27,970
First Union Corp. 1,555,383 82,921
Firstar Corp. 374,100 31,331
Huntington Bancshares, Inc. 291,936 9,269
KeyCorp 661,016 21,318
Mellon Bank Corp. 418,744 28,318
Mercantile Bancorp., Inc. 218,800 9,983
Morgan (JP) & Co., Inc. 279,990 31,201
National City Corp. 525,704 36,734
Northern Trust Corp. 162,200 14,497
PNC Financial Corp. 482,514 25,121
Regions Financial Corp. 312,100 11,860
Republic of New York Corp. 148,626 6,735
SouthTrust Corp. 242,200 9,703
State Street Corp. 232,363 17,819
Summit Bancorp 264,300 10,209
SunTrust Banks, Inc. 519,131 35,268
Synovus Finanical Corp. 369,450 8,798
U.S. Bancorp 1,162,896 37,576
Union Planters Corp. 191,300 8,644
Wachovia Corp. 296,635 25,233
Wells Fargo & Co. 2,525,704 92,820
1,070,222
CREDIT & OTHER FINANCE - 2.9%
American Express Co. 704,219 76,408
Associates First Capital 1,043,384 42,387
Corp. Class A
Citigroup, Inc. 3,458,504 203,187
Countrywide Credit 173,543 6,573
Industries, Inc.
Fleet Financial Group, Inc. 882,776 37,904
Household International, Inc. 740,062 30,065
MBNA Corp. 1,235,344 29,957
Providian Financial Corp. 222,055 22,677
Transamerica Corp. 183,038 13,282
462,440
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FINANCE - CONTINUED
FEDERAL SPONSORED CREDIT - 1.1%
Fannie Mae 1,574,135 $ 110,189
Freddie Mac 1,030,675 60,681
SLM Holding Corp. 246,100 10,552
181,422
INSURANCE - 3.5%
Aetna, Inc. 232,432 17,214
Allstate Corp. 1,269,544 47,608
American General Corp. 373,994 27,395
American International Group, 1,887,904 215,103
Inc.
Aon Corp. 273,653 16,128
Chubb Corp. (The) 245,876 14,691
CIGNA Corp. 324,783 25,495
Cincinnati Financial Corp. 241,300 8,461
Conseco, Inc. 499,874 14,965
Hartford Financial Services 351,058 18,979
Group, Inc.
Jefferson-Pilot Corp. 156,059 10,583
Lincoln National Corp. 156,212 14,791
Loews Corp. 166,010 12,980
Marsh & McLennan Companies, 400,774 28,380
Inc.
MBIA, Inc. 138,004 8,496
MGIC Investment Corp. 165,038 5,622
Progressive Corp. 122,971 15,802
Provident Companies, Inc. 195,800 6,412
SAFECO Corp. 207,009 8,319
St. Paul Companies, Inc. (The) 357,378 11,570
Torchmark Corp. 202,177 6,722
UNUM Corp. 221,832 9,927
545,643
SAVINGS & LOANS - 0.3%
Golden West Financial Corp. 76,178 7,156
Washington Mutual, Inc. 938,931 37,557
44,713
SECURITIES INDUSTRY - 1.3%
Bear Stearns Companies, Inc. 175,665 7,521
Franklin Resources, Inc. 408,000 12,980
Lehman Brothers Holdings, 189,800 10,059
Inc.
Merrill Lynch & Co., Inc. 527,185 40,461
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
FINANCE - CONTINUED
SECURITIES INDUSTRY - CONTINUED
Morgan Stanley, Dean Witter & 882,780 $ 79,892
Co.
Schwab (Charles) Corp. 624,897 46,594
197,507
TOTAL FINANCE 2,501,947
HEALTH - 12.3%
DRUGS & PHARMACEUTICALS - 8.6%
Allergan, Inc. 112,877 9,199
ALZA Corp. Class A. (a) 149,751 7,853
American Home Products Corp. 1,980,636 117,848
Amgen, Inc. (a) 394,546 49,269
Bristol-Myers Squibb Co. 1,538,945 193,811
Lilly (Eli) & Co. 1,663,452 157,508
Merck & Co., Inc. 3,643,594 297,864
Pfizer, Inc. 2,001,047 264,013
Pharmacia & Upjohn, Inc. 796,876 43,430
Schering-Plough Corp. 2,235,204 125,032
Sigma-Aldrich Corp. 147,015 3,878
Warner-Lambert Co. 1,278,758 88,314
1,358,019
MEDICAL EQUIPMENT & SUPPLIES
- - 3.3%
Abbott Laboratories 2,310,938 107,314
Bard (C.R.), Inc. 84,074 4,740
Bausch & Lomb, Inc. 83,869 5,058
Baxter International, Inc. 441,212 31,050
Becton, Dickinson & Co. 391,912 13,129
Biomet, Inc. 171,631 6,297
Boston Scientific Corp. (a) 583,630 15,466
Cardinal Health, Inc. 404,428 29,195
Guidant Corp. 449,794 25,638
Johnson & Johnson 2,062,021 176,045
Mallinckrodt, Inc. 107,710 3,332
McKesson HBOC, Inc. 421,274 28,647
Medtronic, Inc. 904,748 63,898
Millipore Corp. 64,443 1,796
Pall Corp. 184,313 3,905
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES
- - CONTINUED
St. Jude Medical, Inc. (a) 116,094 $ 2,917
U.S. Surgical Corp. rights 289 -
6/30/00 (a)
518,427
MEDICAL FACILITIES MANAGEMENT
- - 0.4%
Columbia/HCA Healthcare Corp. 947,733 16,941
HCR Manor Care, Inc. (a) 159,900 3,578
HEALTHSOUTH Corp. (a) 676,627 7,866
Humana, Inc. (a) 252,406 4,417
Tenet Healthcare Corp. (a) 454,148 8,941
United HealthCare Corp. 286,321 14,119
55,862
TOTAL HEALTH 1,932,308
INDUSTRIAL MACHINERY &
EQUIPMENT - 5.2%
ELECTRICAL EQUIPMENT - 3.7%
Emerson Electric Co. 702,765 40,365
General Electric Co. 5,011,450 502,711
General Instrument Corp. (a) 242,784 7,101
Grainger (W.W.), Inc. 139,750 6,219
Harris Corp. 140,882 4,385
Honeywell, Inc. 187,388 13,105
Scientific-Atlanta, Inc. 115,823 3,757
577,643
INDUSTRIAL MACHINERY &
EQUIPMENT - 1.2%
Briggs & Stratton Corp. 35,346 1,725
Case Corp. 134,404 2,621
Caterpillar, Inc. 554,456 25,262
Cooper Industries, Inc. 190,668 8,342
Deere & Co. 363,333 11,876
Dover Corp. 329,904 11,217
Harnischfeger Industries, 65,667 505
Inc.
Illinois Tool Works, Inc. 381,458 26,225
Ingersoll-Rand Co. 247,004 11,733
Milacron, Inc. 49,470 881
Parker-Hannifin Corp. 172,821 6,416
Stanley Works 128,585 3,126
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
Tenneco, Inc. 253,881 $ 7,601
Timken Co. 78,835 1,394
Tyco International Ltd. 1,010,535 75,222
194,146
POLLUTION CONTROL - 0.3%
Browning-Ferris Industries, 250,889 7,903
Inc.
Waste Management, Inc. 937,119 45,802
53,705
TOTAL INDUSTRIAL MACHINERY & 825,494
EQUIPMENT
MEDIA & LEISURE - 4.8%
BROADCASTING - 2.0%
CBS Corp. 1,068,770 39,411
Clear Channel Communications, 411,242 24,675
Inc. (a)
Comcast Corp. Class A 515,219 36,548
(special)
MediaOne Group, Inc. 956,149 52,110
Tele-Communications, Inc. 720,448 45,253
(TCI Group) Series A (a)
Time Warner, Inc. 1,720,396 110,966
308,963
ENTERTAINMENT - 1.2%
Carnival Corp. 935,800 41,643
Disney (Walt) Co. 3,128,079 110,069
King World Productions, Inc. 95,066 2,513
(a)
Viacom, Inc. Class B 430,233 38,022
(non-vtg.) (a)
192,247
LEISURE DURABLES & TOYS - 0.1%
Brunswick Corp. 130,016 2,771
Hasbro, Inc. 193,774 7,170
Mattel, Inc. 488,430 12,882
22,823
LODGING & GAMING - 0.1%
Harrah's Entertainment, Inc. 190,970 3,187
(a)
Hilton Hotels Corp. 402,488 6,364
Mirage Resorts, Inc. (a) 278,709 5,435
14,986
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
MEDIA & LEISURE - CONTINUED
PUBLISHING - 0.6%
American Greetings Corp. 103,735 $ 2,457
Class A
Dow Jones & Co., Inc. 109,850 5,163
Gannet, Inc. 427,040 27,117
Harcourt General, Inc. 82,483 3,779
Knight-Ridder, Inc. 113,944 5,719
McGraw-Hill Companies, Inc. 147,662 16,160
Meredith Corp. 66,549 2,246
New York Times Co. (The) 277,184 8,593
Class A
Times Mirror Co. Class A 97,610 5,448
Tribune Co. 175,938 11,667
88,349
RESTAURANTS - 0.8%
Darden Restaurants, Inc. 208,595 4,589
Marriott International, Inc. 367,358 13,225
Class A
McDonald's Corp. 1,036,182 88,075
Tricon Global Restaurants, 232,045 14,387
Inc. (a)
Wendy's International, Inc. 188,181 4,505
124,781
TOTAL MEDIA & LEISURE 752,149
NONDURABLES - 8.3%
AGRICULTURE - 0.0%
Pioneer Hi-Bred 281,787 6,604
International, Inc.
BEVERAGES - 2.8%
Anheuser-Busch Companies, 731,374 56,087
Inc.
Brown-Forman Corp. Class B 68,352 4,507
Coca-Cola Co. (The) 3,804,717 243,264
Coca-Cola Enterprises, Inc. 606,200 18,792
Coors (Adolph) Co. Class B 52,280 3,114
PepsiCo, Inc. 2,223,353 83,654
Seagram Co. Ltd. 569,523 26,402
435,820
FOODS - 1.6%
Archer-Daniels-Midland Co. 896,602 13,561
Bestfoods 433,700 20,357
Campbell Soup Co. 686,172 27,576
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
NONDURABLES - CONTINUED
FOODS - CONTINUED
ConAgra, Inc. 752,588 $ 22,672
General Mills, Inc. 251,888 20,324
Heinz (H.J.) Co. 581,384 31,649
Hershey Foods Corp. 178,271 11,097
Kellogg Co. 598,946 22,161
Quaker Oats Co. 205,471 11,224
Ralston Purina Co. 454,630 12,247
Sara Lee Corp. 1,359,688 36,967
Sysco Corp. 500,896 14,150
Wrigley (Wm.) Jr. Co. 135,919 12,640
256,625
HOUSEHOLD PRODUCTS - 2.8%
Alberto-Culver Co. Class B 67,212 1,613
Avon Products, Inc. 416,610 17,341
Clorox Co. 194,991 23,070
Colgate-Palmolive Co. 439,708 37,320
Gillette Co. 1,694,848 90,886
International Flavors & 155,639 6,410
Fragrances, Inc.
Procter & Gamble Co. 2,022,602 181,023
Rubbermaid, Inc. 253,338 8,376
Unilever NV (NY shares) 961,216 69,628
435,667
TOBACCO - 1.1%
Philip Morris Companies, Inc. 3,712,147 145,238
RJR Nabisco Holdings Corp. 512,700 14,003
UST, Inc. 282,044 8,338
167,579
TOTAL NONDURABLES 1,302,295
PRECIOUS METALS - 0.1%
Barrick Gold Corp. 580,349 10,258
Battle Mountain Gold Co. 287,395 970
Homestake Mining Co. 306,340 2,814
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
PRECIOUS METALS - CONTINUED
Newmont Mining Corp. 296,978 $ 5,123
Placer Dome, Inc. 320,673 3,509
22,674
RETAIL & WHOLESALE - 6.5%
APPAREL STORES - 0.5%
Gap, Inc. 867,581 56,122
Limited, Inc. (The) 324,778 11,530
TJX Companies, Inc. 495,330 14,148
81,800
DRUG STORES - 0.6%
CVS Corp. 567,296 30,067
Longs Drug Stores Corp. 64,280 2,326
Rite Aid Corp. 413,996 17,129
Walgreen Co. 1,480,756 47,384
96,906
GENERAL MERCHANDISE STORES -
3.1%
Consolidated Stores Corp. (a) 165,800 4,176
Costco Companies, Inc. (a) 340,916 27,380
Dayton Hudson Corp. 690,194 43,180
Dillards, Inc. Class A 162,100 4,032
Dollar General Corp. 332,200 9,945
Federated Department Stores, 312,118 11,880
Inc. (a)
K mart Corp. (a) 708,253 12,394
Kohls Corp. (a) 236,600 16,325
May Department Stores Co. 354,779 21,021
(The)
Nordstrom, Inc. 226,760 9,127
Penney (J.C.) Co., Inc. 422,710 15,270
Sears, Roebuck & Co. 573,664 23,305
Wal-Mart Stores, Inc. 3,396,013 293,331
491,366
GROCERY STORES - 0.9%
Albertson's, Inc. 382,224 21,787
American Stores Co. 402,899 13,598
Great Atlantic & Pacific Tea, 57,945 1,829
Inc.
Kroger Co. (a) 417,193 26,987
Meyer (Fred), Inc. (a) 239,300 15,375
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
RETAIL & WHOLESALE - CONTINUED
GROCERY STORES - CONTINUED
Safeway, Inc. (a) 747,300 $ 43,157
Supervalu, Inc. 178,256 4,289
Winn-Dixie Stores, Inc. 211,958 9,286
136,308
RETAIL & WHOLESALE,
MISCELLANEOUS - 1.4%
Circuit City Stores, Inc. - 152,627 8,280
Circuit City Group
Home Depot, Inc. 2,309,596 137,854
IKON Office Solutions, Inc. 199,712 2,821
Lowe's Companies, Inc. 528,820 31,366
Staples, Inc. (a) 730,950 21,494
Tandy Corp. 147,816 8,222
Toys R Us, Inc. (a) 409,772 5,788
215,825
TOTAL RETAIL & WHOLESALE 1,022,205
SERVICES - 0.6%
ADVERTISING - 0.2%
Interpublic Group of 197,090 14,745
Companies, Inc.
Omnicom Group, Inc. 249,100 16,503
31,248
LEASING & RENTAL - 0.0%
Ryder Systems, Inc. 157,398 4,250
PRINTING - 0.1%
Deluxe Corp. 130,425 4,418
Donnelley (R.R.) & Sons Co. 199,525 6,834
Moore Corp. Ltd. 115,158 1,211
12,463
SERVICES - 0.3%
Block (H&R), Inc. 172,583 7,831
Cendant Corp. (a) 1,257,658 20,830
Dun & Bradstreet Corp. 248,698 8,518
Ecolab, Inc. 160,900 6,416
Jostens, Inc. 48,025 1,126
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
SERVICES - CONTINUED
SERVICES - CONTINUED
National Service Industries, 78,020 $ 2,506
Inc.
Service Corp. International 377,741 5,808
53,035
TOTAL SERVICES 100,996
TECHNOLOGY - 19.4%
COMMUNICATIONS EQUIPMENT - 3.6%
3Com Corp. (a) 530,344 16,673
Andrew Corp. (a) 133,032 2,012
Ascend Communications, Inc. 320,500 24,658
(a)
Cabletron Systems, Inc. (a) 238,686 1,939
Cisco Systems, Inc. (a) 2,425,566 237,251
Lucent Technologies, Inc. 2,020,856 205,243
Northern Telecom Ltd. 1,015,415 59,128
Tellabs, Inc. (a) 295,240 23,638
570,542
COMPUTER SERVICES & SOFTWARE
- - 6.6%
Adobe Systems, Inc. 109,982 4,427
America Online, Inc. 1,423,800 126,629
Autodesk, Inc. 93,101 3,736
Automatic Data Processing, 961,478 38,219
Inc.
BMC Software, Inc. 334,600 13,677
Ceridian Corp. (a) 99,720 7,142
Computer Associates 828,466 34,796
International, Inc.
Computer Sciences Corp. 231,678 15,436
Compuware Corp. (a) 299,000 16,725
Electronic Data Systems Corp. 769,200 35,768
Equifax, Inc. 200,133 7,555
First Data Corp. 646,436 24,726
IMS Health, Inc. 501,726 17,811
Microsoft Corp. (a) 3,824,136 574,095
Momentum Business 7,322 63
Applications Inc (a)
Novell, Inc. (a) 568,977 11,024
Oracle Corp. (a) 1,488,867 83,190
Parametric Technology Corp. 456,632 7,021
(a)
Paychex, Inc. 259,000 10,975
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
PeopleSoft, Inc. 369,100 $ 6,967
Shared Medical Systems Corp. 34,888 1,779
1,041,761
COMPUTERS & OFFICE EQUIPMENT
- - 5.5%
Apple Computer, Inc. (a) 213,069 7,417
Compaq Computer Corp. 2,614,102 92,147
Data General Corp. (a) 71,588 989
Dell Computer Corp. (a) 1,933,128 154,892
EMC Corp. (a) 771,748 79,008
Gateway 2000, Inc. (a) 228,400 16,602
Hewlett-Packard Co. 1,582,780 105,156
International Business 1,441,158 244,997
Machines Corp.
Pitney Bowes, Inc. 408,542 25,815
Seagate Technology, Inc. (a) 381,195 11,031
Silicon Graphics, Inc. (a) 249,855 3,982
Sun Microsystems, Inc. (a) 584,030 56,833
Unisys Corp. (a) 364,908 10,879
Xerox Corp. 1,034,250 57,078
866,826
ELECTRONIC INSTRUMENTS - 0.3%
Applied Materials, Inc. (a) 548,864 30,531
KLA-Tencor Corp. (a) 147,628 7,649
Perkin-Elmer Corp. 75,248 7,130
Tektronix, Inc. 69,917 1,363
Thermo Electron Corp. (a) 215,024 2,970
49,643
ELECTRONICS - 3.2%
Advanced Micro Devices, Inc. 203,201 3,632
(a)
AMP, Inc. 362,065 19,257
Intel Corp. 2,554,599 306,392
LSI Logic Corp. (a) 188,413 4,887
Micron Technology, Inc. (a) 373,464 21,521
Motorola, Inc. 926,827 65,110
National Semiconductor Corp. 242,976 2,551
(a)
Solectron Corp. (a) 381,000 17,026
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Texas Instruments, Inc. 583,010 $ 51,997
Thomas & Betts Corp. 68,798 2,868
495,241
PHOTOGRAPHIC EQUIPMENT - 0.2%
Eastman Kodak Co. 498,552 32,998
Polaroid Corp. 72,952 1,742
34,740
TOTAL TECHNOLOGY 3,058,753
TRANSPORTATION - 0.9%
AIR TRANSPORTATION - 0.3%
AMR Corp. (a) 270,786 15,012
Delta Air Lines, Inc. 232,440 14,135
Southwest Airlines Co. 499,008 15,033
US Airways Group, Inc. (a) 134,286 6,362
50,542
RAILROADS - 0.4%
Burlington Northern Santa Fe 733,814 24,308
Corp.
CSX Corp. 319,325 12,534
Norfolk Southern Corp. 562,119 15,774
Union Pacific Corp. 388,751 18,223
70,839
TRUCKING & FREIGHT - 0.2%
FDX Corp. (a) 235,358 22,477
Laidlaw, Inc. 462,994 3,562
26,039
TOTAL TRANSPORTATION 147,420
UTILITIES - 11.1%
CELLULAR - 0.7%
AirTouch Communications, Inc. 889,858 81,033
(a)
Nextel Communications, Inc. 420,500 12,641
Class A (a)
Sprint Corp. Series 1 (PCS 671,587 21,491
Group)
115,165
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UTILITIES - CONTINUED
ELECTRIC UTILITY - 2.1%
AES Corp. (a) 256,600 $ 9,542
Ameren Corp. 191,524 7,146
American Electric Power Co., 306,394 12,754
Inc.
Baltimore Gas & Electric Co. 194,288 4,979
Carolina Power & Light Co. 197,928 7,892
Central & South West Corp. 317,693 7,883
CINergy Corp. 210,851 6,154
Consolidated Edison, Inc. 357,236 16,701
Dominion Resources, Inc. 341,834 13,203
DTE Energy Co. 228,410 9,022
Duke Energy Corp. 582,684 33,140
Edison International 535,930 13,666
Entergy Corp. 418,641 11,827
FirstEnergy Corp. 312,328 9,136
FPL Group, Inc. 310,231 15,958
GPU, Inc. 159,969 6,379
New Century Energies, Inc. 160,000 6,490
Niagara Mohawk Power Corp. (a) 187,049 2,736
Northern States Power Co. 180,416 4,657
PacifiCorp 517,291 9,279
PECO Energy Co. 390,456 13,837
PG&E Corp. 625,545 19,705
PP&L Resources, Inc. 204,887 5,225
Public Service Enterprise 345,321 13,122
Group, Inc.
Reliant Energy, Inc. 410,555 11,008
Southern Co. 1,128,469 28,282
Texas Utilities Co. 462,399 19,623
Unicom Corp. 342,314 12,174
331,520
GAS - 0.6%
Columbia Gas System, Inc. 121,051 6,113
Consolidated Natural Gas Co. 145,803 8,010
Eastern Enterprises Co. 54,734 2,104
Enron Corp. 513,928 33,405
NICOR, Inc. 75,608 2,887
ONEOK, Inc. 47,034 1,267
Peoples Energy Corp. 61,681 2,093
Sempra Energy 337,363 7,085
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1) (000S)
UTILITIES - CONTINUED
GAS - CONTINUED
Sonat, Inc. 159,975 $ 4,049
Williams Companies, Inc. 642,602 23,776
90,789
TELEPHONE SERVICES - 7.7%
ALLTEL Corp. 387,205 23,184
Ameritech Corp. 1,719,816 112,433
AT&T Corp. 2,707,151 222,325
Bell Atlantic Corp. 2,393,158 137,457
BellSouth Corp. 3,027,198 140,008
Frontier Corp. 273,711 9,836
GTE Corp. 1,470,848 95,421
MCI WorldCom, Inc. (a) 2,833,058 233,727
SBC Communications, Inc. 2,952,212 156,098
Sprint Corp. (FON Group) 529,475 45,436
U.S. WEST, Inc. 729,586 38,896
1,214,821
TOTAL UTILITIES 1,752,295
TOTAL COMMON STOCKS 15,408,488
(Cost $8,936,365)
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -
2.2%
PRINCIPAL AMOUNT (000S)
U.S. Treasury Bills, yield at $ 341,118 339,048
date of purchase 4.17% to
4.72% 3/4/99 to 4/22/99 (b)
(Cost $339,179)
TOTAL INVESTMENT IN $ 15,747,536
SECURITIES - 100%
(Cost $9,275,544)
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT (000S) UNREALIZED GAIN/(LOSS) (000S)
PURCHASED
1,111 S&P 500 Stock Index Mar. 1999 $ 343,160 $ 8,190
Contracts
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 2.2%
</TABLE>
LEGEND
(a) Non-income producing
(b) Security or a portion of the security was pledged to cover margin
requirements for future contracts. At the period end, the value of
securities pledged amounted to $24,700,000.
INCOME TAX INFORMATION
At February 28, 1999, the aggregate cost of investment securities for
income tax purposes was $9,313,010,000. Net unrealized appreciation
aggregated $6,434,526,000, of which $6,862,225,000 related to
appreciated investment securities and $427,699,000 related to
depreciated investment securities.
The fund hereby designates approximately $96,796,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT
PER-SHARE AMOUNTS) FEBRUARY
28, 1999
ASSETS
Investment in securities, at $ 15,747,536
value (cost $9,275,544) -
See accompanying schedule
Cash 874
Receivable for fund shares 39,438
sold
Dividends receivable 20,152
Interest receivable 92
Other receivables 27
Investment of cash collateral 546,061
received for securities
loaned
TOTAL ASSETS 16,354,180
LIABILITIES
Payable for investments $ 9,671
purchased
Payable for fund shares 27,935
redeemed
Accrued management fee 223
Payable for daily variation 1,808
on futures contracts
Other payables and accrued 2,794
expenses
Collateral on securities 546,061
loaned, at value
TOTAL LIABILITIES 588,492
NET ASSETS $ 15,765,688
Net Assets consist of:
Paid in capital $ 9,246,522
Undistributed net investment 32,602
income
Accumulated undistributed net 6,382
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 6,480,182
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 355,852 $ 15,765,688
shares outstanding
NET ASSET VALUE, offering $44.30
price and redemption price
per share ($15,765,688
(divided by) 355,852 shares)
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS YEAR
ENDED FEBRUARY 28, 1999
INVESTMENT INCOME $ 185,140
Dividends
Interest (including income on 12,585
securities loaned of $949)
TOTAL INCOME 197,725
EXPENSES
Management fee and $ 31,837
sub-advisory fee
Transfer agent fees 21,465
Accounting fees 871
Non-interested trustees' 58
compensation
Registration fees 995
Audit 86
Legal 69
Interest 23
Reports to shareholders 214
Miscellaneous 41
Total expenses before 55,659
reductions
Expense reductions (31,744) 23,915
NET INVESTMENT INCOME 173,810
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 16,085
Foreign currency transactions 3
Futures contracts 5,302 21,390
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 2,117,686
Futures contracts (1,119) 2,116,567
NET GAIN (LOSS) 2,137,957
NET INCREASE (DECREASE) IN $ 2,311,767
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS YEAR ENDED FEBRUARY 28, 1999 YEAR ENDED FEBRUARY 28, 1998
INCREASE (DECREASE) IN NET
ASSETS
Operations Net investment $ 173,810 $ 142,525
income
Net realized gain (loss) 21,390 154,362
Change in net unrealized 2,116,567 2,266,714
appreciation (depreciation)
NET INCREASE (DECREASE) IN 2,311,767 2,563,601
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (168,721) (136,471)
From net investment income
From net realized gain (103,340) (64,494)
TOTAL DISTRIBUTIONS (272,061) (200,965)
Share transactions Net 7,293,000 5,531,225
proceeds from sales of shares
Reinvestment of distributions 268,490 197,180
Cost of shares redeemed (5,012,488) (3,401,121)
NET INCREASE (DECREASE) IN 2,549,002 2,327,284
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
TOTAL INCREASE (DECREASE) 4,588,708 4,689,920
IN NET ASSETS
NET ASSETS
Beginning of period 11,176,980 6,487,060
End of period (including $ 15,765,688 $ 11,176,980
undistributed net investment
income of $32,602 and
$27,227, respectively)
OTHER INFORMATION
Shares
Sold 179,538 167,395
Issued in reinvestment of 6,834 6,139
distributions
Redeemed (125,415) (103,521)
Net increase (decrease) 60,957 70,013
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 1997 1996 E 1995
SELECTED PER-SHARE DATA
Net asset value, beginning $ 37.90 $ 28.85 $ 23.56 $ 18.02 $ 17.36
of period
Income from Investment
Operations
Net investment income .53 B .55 B .51 B .48 .43
Net realized and unrealized 6.74 9.29 5.47 5.63 .77
gain (loss)
Total from investment 7.27 9.84 5.98 6.11 1.20
operations
Less Distributions
From net investment income (.53) (.54) (.49) (.46) (.43)
From net realized gain (.34) (.25) (.20) (.11) (.07)
In excess of net realized gain - - - - (.04)
Total distributions (.87) (.79) (.69) (.57) (.54)
Net asset value, end of period $ 44.30 $ 37.90 $ 28.85 $ 23.56 $ 18.02
TOTAL RETURN A 19.50% 34.65% 25.87% 34.37% 7.17%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 15,766 $ 11,177 $ 6,487 $ 4,113 $ 2,235
(in millions)
Ratio of expenses to average .19% C .20% C .28% C .28% C .28% C
net assets
Ratio of expenses to average .18% D .19% D .26% D .25% D .28%
net assets after expense
reductions
Ratio of net investment 1.33% 1.66% 2.00% 2.34% 2.65%
income to average net assets
Portfolio turnover rate 4% 2% 3% 1% 11%
</TABLE>
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT
BEEN REDUCED DURING THE PERIODS SHOWN.
B NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE
SHARES OUTSTANDING DURING THE PERIOD.
C FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE
PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD
HAVE BEEN HIGHER.
D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD
PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES.
E FOR THE YEAR ENDED FEBRUARY 29.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
Spartan U.S. Equity Index Fund (the fund) is a fund of Fidelity
Concord Street 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, as an open-end management
investment company organized as a Massachusetts business trust. The
financial statements have been prepared in conformity with generally
accepted accounting principles which require management to make
certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the fund:
SECURITY VALUATION. Securities for which exchange quotations are
readily available are valued at the last sale price, or if no sale
price, at the closing bid price. Securities for which exchange
quotations are not readily available (and in certain cases debt
securities which trade on an exchange) are valued primarily using
dealer-supplied valuations or at their fair value as determined in
good faith under consistently applied procedures under the general
supervision of the Board of Trustees. Short-term securities with
remaining maturities of sixty days or less for which quotations are
not readily available are valued at amortized cost or original cost
plus accrued interest, both of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, the fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for 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. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
INVESTMENT INCOME - CONTINUED
received. Interest income, which includes accretion of original issue
discount, is accrued as earned. Investment income is recorded net of
foreign taxes withheld where recovery of such taxes is uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DEFERRED TRUSTEE COMPENSATION. Under a Deferred Compensation Plan (the
Plan) non-interested Trustees must defer receipt of a portion of, and
may elect to defer receipt of an additional portion of, their annual
compensation. Deferred amounts are treated as though equivalent dollar
amounts had been invested in shares of the fund or are invested in a
cross-section of other Fidelity funds. Deferred amounts remain in the
fund until distributed in accordance with the Plan.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, market discount and losses
deferred due to wash sales and excise tax regulations. 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.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments and foreign currency transactions
may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency
contracts to facilitate transactions in foreign-denominated
securities. Losses may arise from changes in the value of the foreign
currency or if the counterparties do not perform under the contracts'
terms. The U.S. dollar value of foreign currency contracts is
determined using contractual currency exchange rates established at
the time of each trade.
INTERFUND LENDING PROGRAM. 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 participate in an interfund lending program. This program provides
an
2. OPERATING POLICIES - CONTINUED
INTERFUND LENDING PROGRAM - CONTINUED
alternative credit facility allowing the fund to borrow from, or lend
money to, other participating funds.
FUTURES CONTRACTS. The fund may use futures contracts to manage its
exposure to the stock market. Buying futures tends to increase the
fund's exposure to the underlying instrument, while selling futures
tends to decrease the fund's exposure to the underlying instrument or
hedge other fund investments. Futures contracts involve, to varying
degrees, risk of loss in excess of the futures variation margin
reflected in the Statement of Assets and Liabilities. The underlying
face amount at value of any open futures contracts at period end is
shown in the schedule of investments under the caption "Futures
Contracts." This amount reflects each contract's exposure to the
underlying instrument at period end. Losses may arise from changes in
the value of the underlying instruments or if the counterparties do
not perform under the contracts' terms. Gains (losses) are realized
upon the expiration or closing of the futures contracts. Futures
contracts are valued at the settlement price established each day by
the board of trade or exchange on which they are traded.
3. PURCHASES AND SALES OF INVESTMENTS.
Purchases and sales of securities, other than short-term securities,
aggregated $2,915,542,000 and $535,964,000, respectively.
The market value of futures contracts opened and closed during the
period amounted to $3,601,792,000 and $3,507,068,000, respectively.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As the fund's investment adviser, Fidelity Management
& Research Company (FMR) receives a fee that is computed daily at an
annual rate of .24% of the fund's average net assets.
SUB-ADVISER FEE. FMR and the fund have entered into a sub-advisory
agreement with Bankers Trust Company (Bankers Trust). Bankers Trust
receives a sub-advisory fee for providing investment management,
securities lending and custodial services to the fund. For these
services, FMR pays Bankers Trust fees at an annual rate of 0.006% of
the fund's average net assets. In addition, the fund pays Bankers
Trust fees equal to 40% of net income from the fund's securities
lending program. For the period, the fund paid Bankers Trust $380,000.
This fee is included in the caption "Management fee and sub-advisory
fee" on the Statement of Operations.
On March 11, 1999, Bankers Trust announced that it had reached an
agreement with the United States Attorney's Office to resolve an
investigation concerning inappropriate transfers of unclaimed funds
and related recordkeeping problems that occurred between 1994 and
early 1996. Pursuant to its agreement with the U.S. Attorney's Office,
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
SUB-ADVISER FEE - CONTINUED
Bankers Trust pleaded guilty to misstating entries in the bank's books
and records. As a result of the plea, absent an order from the SEC,
Bankers Trust would not be able to continue to provide investment
advisory services to the fund. The SEC has granted a temporary order
to permit Bankers Trust and its affiliates to continue to provide
investment advisory services to registered investment companies. There
is no assurance that the SEC will grant a permanent order.
TRANSFER AGENT FEES. Fidelity Investments Institutional Operations
Company, Inc. (FIIOC), an affiliate of FMR, is the fund's transfer,
dividend disbursing and shareholder servicing agent. FIIOC receives
account fees and asset-based fees that vary according to account size
and type of account. FIIOC pays for typesetting, printing and mailing
of all shareholder reports, except proxy statements. For the period,
the transfer agent fees were equivalent to an annual rate of .16% of
average net assets.
ACCOUNTING FEES. Fidelity Service Company, Inc., an affiliate of FMR,
maintains the fund's accounting records. The fee is based on the level
of average net assets for the month plus out-of-pocket expenses.
5. SECURITY LENDING.
The fund loaned securities to certain brokers who paid the fund
negotiated lenders' fees. These fees are included in interest income.
The fund receives U.S. Treasury obligations and/or cash as collateral
against the loaned securities, in an amount at least equal to 102% of
the market value of the loaned securities at the inception of each
loan. This collateral must be maintained at not less than 100% of the
market value of the loaned securities during the period of the loan.
The market value of the loaned securities is determined at the close
of business of the fund and any additional required collateral is
delivered to the fund on the next business day. At period end, the
value of the securities loaned amounted to $532,864,000. The fund
received cash collateral of $546,061,000 which was invested in the
Bankers Trust Institutional Daily Asset Fund. The fund also received
non-cash collateral of $9,600,000 which represents U.S. Treasury
obligations.
6. BANK BORROWINGS.
The fund is permitted to have bank borrowings for temporary or
emergency purposes to fund shareholder redemptions. The fund has
established borrowing arrangements with certain banks. The interest
rate on the borrowings is the bank's base rate, as revised from time
to time. The maximum loan and the average daily loan balance during
the period for which the loan was outstanding amounted to $37,205,000
and $17,666,000, respectively. The weighted average interest rate was
5.63%. Interest expense includes $14,000 paid under the bank borrowing
program.
7. INTERFUND LENDING PROGRAM.
The fund participated in the interfund lending program as a borrower.
The maximum loan and the average daily loan balance during the period
for which the loan was outstanding amounted to $37,166,000 and
$29,500,000, respectively. The weighted average interest rate was
5.87%. Interest expense includes $9,000 paid under the interfund
lending program.
8. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse the fund's operating expenses
(excluding interest, taxes, brokerage commissions, extraordinary
expenses and sub-advisory fees paid by the fund associated with
securities lending) above an annual rate of .19% of average net
assets. For the period, the reimbursement reduced expenses by
$30,350,000.
In addition, the fund has entered into arrangements with its custodian
and transfer agent whereby credits realized as a result of uninvested
cash balances were used to reduce a portion of the fund's expenses.
During the period, fees were reduced by $47,000 and $1,347,000 by the
fund's custodian and transfer agent, respectively, under these
arrangements.
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Concord Street Trust and the Shareholders
of Spartan U.S. Equity Index Fund:
In our opinion, the accompanying statement of assets and liabilities,
including the schedule of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Spartan U.S. Equity Index Fund (a fund of Fidelity Concord Street
Trust) at February 28, 1999, and the results of its operations, the
changes in its net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Spartan U.S. Equity Index Fund's management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at February 28, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 15, 1999
DISTRIBUTIONS
The Board of Trustees of Spartan U.S. Equity Index Fund voted to pay
on April 5, 1999, to shareholders of record at the opening of business
on April 1, 1999, a distribution of $.13 per share derived from
capital gains realized from sales of portfolio securities.
A total of 95.41% of the dividends distributed during the fiscal year
qualifies for the dividends-received deduction for corporate
shareholders.
The fund will notify shareholders in January 2000 of the applicable
percentage for use in preparing 1999 income tax returns.
The fund hereby designates 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends.
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Bankers Trust Company
New York, NY
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Robert A. Lawrence, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
J. Gary Burkhead
Abigail P. Johnson
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
* INDEPENDENT TRUSTEES
(registered trademark)
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Investments Institutional
Operations Company, Inc.
Boston, MA
CUSTODIAN
Bankers Trust Company
New York, NY
(fidelity_logo_graphic)(registered trademark)
Corporate Headquarters
www.fidelity.com
SPARTAN(REGISTERED TRADEMARK) TOTAL MARKET INDEX
SPARTAN(REGISTERED TRADEMARK) EXTENDED MARKET INDEX
SPARTAN(REGISTERED TRADEMARK) INTERNATIONAL INDEX
FUNDS
ANNUAL REPORT
FOR THE YEAR ENDING
FEBRUARY 28, 1999
AND
PROSPECTUS
DATED APRIL 21,1999
(2_FIDELITY_LOGOS)(REGISTERED TRADEMARK)
CONTENTS
PRESIDENT'S MESSAGE A-3 NED JOHNSON ON INVESTING
STRATEGIES.
SPARTAN TOTAL MARKET INDEX FUND A-4 PERFORMANCE
A-5 FUND TALK: THE MANAGER'S
OVERVIEW
A-6 INVESTMENT CHANGES
A-7 INVESTMENTS
A-33 FINANCIAL STATEMENTS
SPARTAN EXTENDED MARKET INDEX A-35 PERFORMANCE
FUND
A-36 FUND TALK: THE MANAGER'S
OVERVIEW
A-37 INVESTMENT CHANGES
A-38 INVESTMENTS
A-77 FINANCIAL STATEMENTS
SPARTAN INTERNATIONAL INDEX A-79 PERFORMANCE
FUND
A-80 FUND TALK: THE MANAGER'S
OVERVIEW
A-81 INVESTMENT CHANGES
A-82 INVESTMENTS
A-91 FINANCIAL STATEMENTS
NOTES A-93 NOTES TO THE FINANCIAL
STATEMENTS.
REPORT OF INDEPENDENT A-96 THE AUDITORS' OPINION
ACCOUNTANTS
DISTRIBUTIONS A-97
OF SPECIAL NOTE A-98
PROSPECTUS P-1
Third party marks appearing herein are the property of their
respective owners.
All other marks appearing herein are registered or unregistered
trademarks or service marks of FMR Corp. or an affiliated company.
This report is printed on recycled paper using soy-based inks.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER AND DO NOT NECESSARILY REPRESENT THE VIEWS OF FIDELITY OR
ANY OTHER PERSON IN THE FIDELITY ORGANIZATION. ANY SUCH VIEWS ARE
SUBJECT TO CHANGE AT ANY TIME BASED UPON MARKET OR OTHER CONDITIONS
AND FIDELITY DISCLAIMS ANY RESPONSIBILITY TO UPDATE SUCH VIEWS. THESE
VIEWS MAY NOT BE RELIED ON AS INVESTMENT ADVICE AND, BECAUSE
INVESTMENT DECISIONS FOR A FIDELITY FUND ARE BASED ON NUMEROUS
FACTORS, MAY NOT BE RELIED ON AS AN INDICATION OF TRADING INTENT ON
BEHALF OF ANY FIDELITY FUND.
THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE
SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE
FUNDS. THIS REPORT IS NOT AUTHORIZED FOR
DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUNDS UNLESS PRECEDED OR
ACCOMPANIED BY AN EFFECTIVE PROSPECTUS.
MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED
BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT
INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND
ARE SUBJECT TO INVESTMENT RISKS, INCLUDING
POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED.
NEITHER THE FUNDS NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK.
FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND
EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY
BEFORE YOU INVEST OR SEND MONEY.
PRESIDENT'S MESSAGE
(photograph of Edward C. Johnson 3d)
DEAR SHAREHOLDER:
February proved to be a challenging month for the U.S. stock and bond
markets. Instances of profit worries and brisk selling in the
technology sector hampered the equity markets at times. Financial
shares, however, turned in their strongest performance in recent
months. Meanwhile, bond markets were unsettled by strong economic data
and Federal Reserve Chairman Alan Greenspan's concerns that the Fed's
rate cuts last fall may have overstimulated the economy.
While it's impossible to predict the future direction of the markets
with any degree of certainty, there are certain basic principles that
can help investors plan for their future needs.
First, investors are encouraged to take a long-term view of their
portfolios. If you can afford to leave your money invested through the
inevitable up and down cycles of the financial markets, you will
greatly reduce your vulnerability to any single decline. We know from
experience, for example, that stock prices have gone up over longer
periods of time, have significantly outperformed other types of
investments and have stayed ahead of inflation.
Second, you can further manage your investing risk through
diversification. A stock mutual fund, for instance, is already
diversified, because it invests in many different companies. You can
increase your diversification further by investing in a number of
different stock funds, or in such other investment categories as
bonds. If you have a short investment time horizon, you might want to
consider moving some of your investment into a money market fund,
which seeks income and a stable share price by investing in
high-quality, short-term investments. Of course, it's important to
remember that an investment in a money market fund is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. Although money market funds seek to preserve the
value of your investment at $1.00 per share, it is possible to lose
money by investing in these types of funds.
Finally, no matter what your time horizon or portfolio diversity, it
makes good sense to follow a regular investment plan, investing a
certain amount of money in a fund at the same time each month or
quarter and periodically reviewing your overall portfolio. By doing
so, you won't get caught up in the excitement of a rapidly rising
market, nor will you buy all your shares at market highs. While this
strategy - known as dollar cost averaging - won't assure a profit or
protect you from a loss in a declining market, it should help you
lower the average cost of your purchases. Of course, you should
consider your financial ability to continue your purchases through
periods of low price levels before undertaking such a strategy.
If you have questions, please call us at 1-800-544-8888, or visit our
web site at www.fidelity.com. We are available 24 hours a day, seven
days a week to provide you the information you need to make the
investments that are right for you.
Best regards,
Edward C. Johnson 3d
SPARTAN TOTAL MARKET INDEX FUND
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. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value) and the effect of the 0.50% purchase fee. If
Fidelity had not reimbursed certain fund expenses, the total returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR LIFE OF FUND
1999
SPARTAN TOTAL MARKET INDEX 14.61% 27.77%
SPARTAN TOTAL MARKET INDEX 14.04% 27.13%
(INCL. 0.50% PURCHASE FEE)
Wilshire 5000 14.34% 25.99%
Growth & Income Funds Average 6.49% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year or since the fund
started on November 5, 1997. For example, if you had invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's return to the
performance of the Wilshire 5000 Index - a market
capitalization-weighted index of approximately 7,000 U.S. equity
securities. The index contains all actively traded common stocks with
readily available price data traded on the New York Stock Exchange,
American Stock Exchange, and NASDAQ. To measure how the fund's
performance stacked up against its peers, you can compare it to the
Growth & Income Funds Average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
one year average represents a peer group of 801 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR LIFE OF FUND
1999
SPARTAN TOTAL MARKET INDEX 14.61% 20.48%
SPARTAN TOTAL MARKET INDEX 14.04% 20.02%
(INCL. 0.50% PURCHASE FEE)
Wilshire 5000 14.34% 19.21%
Growth & Income Funds Average 6.49% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
SPARTAN TOTAL MKT INDEX WILSHIRE 5000
00397 WA006
1997/11/05 9950.00 10000.00
1997/11/30 10077.36 10030.36
1997/12/31 10269.29 10215.72
1998/01/31 10345.15 10271.23
1998/02/28 11091.79 11018.99
1998/03/31 11658.76 11570.45
1998/04/30 11769.78 11707.79
1998/05/31 11451.78 11396.26
1998/06/30 11862.36 11795.86
1998/07/31 11596.69 11537.41
1998/08/31 9773.26 9740.66
1998/09/30 10437.42 10376.94
1998/10/31 11238.45 11148.95
1998/11/30 11946.89 11850.99
1998/12/31 12737.00 12609.36
1999/01/31 13187.83 13072.95
1999/02/26 12712.63 12599.06
IMATRL PRASUN SHR__CHT 19990228 19990309 112353 R00000000000019
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Spartan Total Market Index Fund on November 5, 1997, when
the fund started, and the current 0.50% purchase fee was paid. As the
chart shows, by February 28, 1999, the value of the investment would
have been $12,713 - a 27.13% increase on the initial investment. For
comparison, look at how the Wilshire 5000 Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have been $12,599 - a 25.99% increase.
(checkmark)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 long-term growth and short-term
volatility. 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.
SPARTAN TOTAL MARKET INDEX FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Frank Salerno)
An interview with Frank Salerno, Portfolio Manager of Spartan Total
Market Index Fund for Bankers Trust, sub-adviser of the fund
Q. HOW DID THE FUND PERFORM, FRANK?
A. For the 12 months that ended February 28, 1999, the fund posted a
total return of 14.61% (figure does not include the purchase fee).
Fund performance compared well with the 14.34% return for the Wilshire
5000 Index. The fund also compares its performance to the Lipper Inc.
growth & income funds average, which returned 6.49% during the same
12-month period.
Q. HOW WOULD YOU CHARACTERIZE THE MARKET ENVIRONMENT DURING THE
PERIOD?
A. During the first half of the 12-month period, fund performance
suffered in response to extreme volatility and uncertainty in global
markets. While financial conditions remained positive on the home
front amidst low interest rates, consistently non-existent signs of
inflation and strong consumer spending, U.S. investors became
increasingly concerned about the impact of the Asian crisis and
problems in emerging markets. During the six-month period that ended
August 31, 1998, the fund and the Wilshire 5000 Index posted total
returns of -11.89% and -11.60%, respectively. This bearish
environment, however, was quickly reversed in the last few months of
1998 when the Federal Reserve Board cut interest rates three times in
an effort to restore confidence and liquidity to the markets. In
response, the market staged an impressive comeback and the Standard &
Poor's 500 ended 1998 with its fourth consecutive year of 20%-plus
gains. Despite some concerns over Brazil's currency devaluation and
jitters about corporate earnings, the beat went on in 1999, as most
U.S. stock indexes continued their advance.
Q. AT APPROXIMATELY 19%, THE TECHNOLOGY SECTOR WAS THE FUND'S LARGEST
INDUSTRY WEIGHTING AND CONTRIBUTED SIGNIFICANTLY TO PERFORMANCE. WHY
DID THIS SECTOR PERFORM SO WELL?
A. While technology companies such as Microsoft, Intel and Dell faced
a host of challenges during the period, ranging from the Year 2000
(Y2K) problem to the Asian crisis, these stocks continued to surge
ahead with strong financial results and impressive returns. Many
computer software and hardware companies, as well as a range of other
technology stocks, posted strong results as demand for computers
remained solid and Internet commerce skyrocketed.
Q. THE SECOND LARGEST SECTOR WEIGHTING FOR THE FUND AND INDEX WAS
FINANCE. HOW DID THESE STOCKS PERFORM?
A. Financial stocks were among the best performers early in the
period, spurred by a number of megamergers, such as Travelers Group
with Citicorp, Nationsbank with BankAmerica and Norwest with Wells
Fargo. In the third quarter of 1998, however, investors purged the
majority of financial services shares, fearing not just an earnings
stumble but a potential global financial meltdown. Nevertheless, the
selling was overdone, as financial stocks were the primary
beneficiaries following the three interest-rate cuts by the Federal
Reserve Board.
Q. WHAT'S YOUR OUTLOOK, FRANK?
A. While the market was helped by falling interest rates and the
economy remained healthy last year, I think there a number of hurdles
that could trip up the market in 1999. First, with stock valuations at
record high-levels, any earnings disappointments could result in
weakness for the broader market. Second, there is the possibility that
deflation could hurt corporate profits and the market. Finally, the
potential Y2K computer glitch could make investors nervous. Whether
none or all of these scenarios impact stock prices, it seems global
excess capacity and ongoing weakness overseas could provide a
difficult backdrop in which to produce earnings growth in 1999.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE A-2.
NOTE TO SHAREHOLDERS:
On November 30, 1998, Bankers Trust Corporation entered into an
Agreement and Plan of Merger with Deutsche Bank AG. The merger is
contingent upon various regulatory approvals. At a meeting held on
March 18, 1999, the fund's Board of Trustees approved a new
sub-advisory agreement among the fund, Fidelity Management & Research
Co. and Bankers Trust or its successor by merger that would be
effective at the time of the merger. This agreement will be presented
to the fund's shareholders for approval.
Shares purchased after April 28, 1999 will no longer be subject to a
0.50% purchase fee. However, the fund will deduct a short-term trading
fee of 0.50% from the redemption amount if you sell shares purchased
after April 28, 1999 after holding them for less than 90 days. The fee
is paid to the fund, and is designed to offset the brokerage
commissions, market impact, and other costs associated with
fluctuations in fund asset levels and cash flow caused by short-term
shareholder trading.
(checkmark)FUND FACTS
GOAL: total return that corresponds to that of
the Wilshire 5000 Index
FUND NUMBER: 397
TRADING SYMBOL: FSTMX
START DATE: November 5, 1997
SIZE: as of February 28, 1999, more
than $213 million
MANAGER: Frank Salerno, since inception
SPARTAN TOTAL MARKET INDEX FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF FEBRUARY
28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE STOCKS 6 MONTHS AGO
Microsoft Corp. 2.9 2.2
General Electric Co. 2.5 2.5
Intel Corp. 1.5 1.1
Merck & Co., Inc. 1.5 1.3
Wal-Mart Stores, Inc. 1.5 1.2
Pfizer, Inc. 1.3 1.1
Exxon Corp. 1.2 1.5
Coca-Cola Co. (The) 1.2 1.5
International Business 1.2 1.0
Machines Corp.
Cisco Systems, Inc. 1.2 0.8
TOP TEN MARKET SECTORS AS OF
FEBRUARY 28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE MARKET SECTORS 6
MONTHS AGO
TECHNOLOGY 19.2 14.5
FINANCE 16.4 16.3
HEALTH 11.1 10.7
UTILITIES 10.7 10.0
NONDURABLES 6.7 7.7
RETAIL & WHOLESALE 6.1 5.5
MEDIA & LEISURE 5.7 5.1
INDUSTRIAL MACHINERY & 4.3 4.5
EQUIPMENT
ENERGY 3.8 5.1
BASIC INDUSTRIES 3.3 3.9
</TABLE>
SPARTAN TOTAL MARKET INDEX FUND
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 96.0%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 1.5%
AEROSPACE & DEFENSE - 1.2%
AAR Corp. 150 $ 2,269
Alliant Techsystems, Inc. (a) 608 48,146
AlliedSignal, Inc. 9,000 372,375
Aviall, Inc. (a) 1,200 16,575
BE Aerospace, Inc. (a) 1,500 22,125
Boeing Co. 15,500 551,219
Cordant Technologies, Inc. 500 19,469
Goodrich (B.F.) Co. 1,570 53,576
Gulfstream Aerospace Corp. (a) 900 40,275
Harsco Corp. 900 25,256
Kellstrom Industries, Inc. (a) 800 12,950
Lockheed Martin Corp. 7,200 271,350
Orbital Sciences Corp. (a) 1,400 38,675
Precision Castparts Corp. 400 14,850
Rockwell International Corp. 3,800 168,863
Sundstrand Corp. 1,500 101,531
Textron, Inc. 3,100 241,800
United Technologies Corp. 3,300 408,788
Wyman-Gordon Co. (a) 500 4,031
2,414,123
DEFENSE ELECTRONICS - 0.2%
Litton Industries, Inc. (a) 1,100 61,738
Northrop Grumman Corp. 1,400 87,238
Raytheon Co. Class B 6,200 331,313
Stanford Telecommunications, 100 1,203
Inc. (a)
481,492
SHIP BUILDING & REPAIR - 0.1%
Avondale Industries, Inc. 1,000 30,875
General Dynamics Corp. 2,600 157,138
Halter Marine Group, Inc. (a) 200 800
Newport News Shipbuilding, 1,600 46,300
Inc.
235,113
TOTAL AEROSPACE & DEFENSE 3,130,728
BASIC INDUSTRIES - 3.3%
CHEMICALS & PLASTICS - 1.7%
Air Products & Chemicals, 4,700 150,988
Inc.
Airgas, Inc. (a) 100 900
Albemarle Corp. 240 5,670
Arch Chemicals, Inc. (a) 100 1,900
Ashland, Inc. 2,000 89,000
Atmi, Inc. (a) 100 2,275
Avery Dennison Corp. 2,500 134,219
Cabot Corp. 300 7,556
Catalytica, Inc. (a) 500 7,125
Crompton & Knowles Corp. 2,000 37,000
Cytec Industries, Inc. (a) 400 10,725
Dow Chemical Co. 3,800 373,825
du Pont (E.I.) de Nemours & 17,600 903,100
Co.
SHARES VALUE (NOTE 1)
Eastman Chemical Co. 1,900 $ 89,656
Engelhard Corp. 2,400 42,750
Ethyl Corp. 400 1,950
Ferro Corp. 150 3,206
FMC Corp. (a) 900 46,069
Fuller (H.B.) Co. 200 8,475
Geon Co. 200 4,563
Georgia Gulf Corp. 200 3,025
Great Lakes Chemical Corp. 1,700 66,194
Hanna (M.A.) Co. 200 2,200
Hercules, Inc. 1,900 52,606
IMC Global, Inc. 2,900 57,819
International Specialty 100 881
Products, Inc. (a)
Lubrizol Corp. 1,000 19,063
Lyondell Petrochemical Co. 1,100 14,713
Millennium Chemicals, Inc. 2,200 39,738
Minerals Technologies, Inc. 600 25,763
Monsanto Co. 9,500 432,844
Morton International, Inc. 2,800 101,150
Nalco Chemical Co. 2,400 67,500
NL Industries, Inc. 200 1,938
Olin Corp. 200 2,538
OM Group, Inc. 500 14,531
PPG Industries, Inc. 3,400 177,013
Praxair, Inc. 3,300 115,294
Raychem Corp. 2,100 47,906
Rohm & Haas Co. 3,800 118,750
Schulman (A.), Inc. 1,000 16,500
Scotts Co. Class A (a) 200 6,475
Sealed Air Corp. (a) 1,760 89,320
Solutia, Inc. 3,100 55,219
Synetic, Inc. (a) 100 4,394
Terra Industries, Inc. 400 1,975
Union Carbide Corp. 2,800 123,200
USEC, Inc. 1,700 24,119
Valhi, Inc. 600 6,900
Valspar Corp. 200 6,500
W.R. Grace & Co. (a) 900 12,094
Wellman, Inc. 100 931
Witco Corp. 300 5,081
3,635,126
IRON & STEEL - 0.2%
Aeroquip-Vickers, Inc. 800 45,300
AK Steel Holding Corp. 2,100 45,806
Allegheny Teledyne, Inc. 1,829 37,723
Bethlehem Steel Corp. (a) 704 6,204
Birmingham Steel Corp. 100 413
Cleveland-Cliffs, Inc. 200 7,413
LTV Corp. 500 2,750
Mueller Industries, Inc. (a) 500 10,563
National Steel Corp. Class B 400 3,300
NS Group, Inc. (a) 200 788
Nucor Corp. 2,100 93,581
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - CONTINUED
IRON & STEEL - CONTINUED
Oregon Steel Mills, Inc. 100 $ 956
Quanex Corp. 100 1,750
Steel Dynamics, Inc. (a) 500 7,875
Titan International, Inc. 100 744
USX-U.S. Steel Group 2,600 65,813
WHX Corp. (a) 100 869
Worthington Industries, Inc. 2,500 31,719
363,567
METALS & MINING - 0.3%
AFC Cable Systems, Inc. (a) 600 19,875
Alcoa, Inc. 5,600 226,800
ASARCO, Inc. 1,800 25,425
Belden, Inc. 800 14,450
Cable Design Technology Corp. 150 1,941
(a)
Commonwealth Industries, Inc. 100 1,081
Commscope, Inc. (a) 1,800 33,413
Cyprus Amax Minerals Co. 3,900 43,875
Encore Wire Corp. (a) 300 2,831
Freeport-McMoRan Copper & 4,900 46,244
Gold, Inc. Class B
General Cable Corp. 900 16,931
International FiberCom, Inc. 1,600 11,300
(a)
Kaiser Aluminum Corp. (a) 100 500
Martin Marietta Materials, 1,200 61,575
Inc.
Phelps Dodge Corp. 1,600 77,600
Reynolds Metals Co. 1,800 76,950
Ryerson Tull, Inc. (NEW) (a) 711 12,976
Superior Telecom, Inc. 500 14,156
Titanium Metals Corp. 400 2,825
690,748
PACKAGING & CONTAINERS - 0.2%
Ball Corp. 1,200 50,250
Bemis Co., Inc. 1,500 51,094
Corning, Inc. 3,400 181,900
Crown Cork & Seal Co., Inc. 2,800 77,700
Owens-Illinois, Inc. (a) 2,100 50,269
Sonoco Products Co. 2,350 57,575
Tupperware Corp. 1,300 22,750
491,538
PAPER & FOREST PRODUCTS - 0.9%
American Pad & Paper Co. (a) 100 156
Boise Cascade Corp. 900 27,956
Bowater, Inc. 1,500 63,188
Caraustar Industries, Inc. 900 23,063
Champion International Corp. 2,300 85,100
Chesapeake Corp. 100 3,150
Consolidated Papers, Inc. 600 13,350
Fort James Corp. 2,600 77,675
Georgia-Pacific Corp. 1,700 124,525
Georgia-Pacific Corp. (Timber 1,600 32,600
Group)
SHARES VALUE (NOTE 1)
International Paper Co. 5,600 $ 235,200
Kimberly-Clark Corp. 8,042 379,985
Louisiana-Pacific Corp. 2,300 42,263
Mail-Well, Inc. (a) 1,500 21,188
Mead Corp. 2,800 85,225
Pentair, Inc. 300 11,363
Potlatch Corp. 100 3,469
Rayonier, Inc. 900 36,844
Smurfit-Stone Container Corp. 3,698 66,795
(a)
Temple-Inland, Inc. 1,100 65,931
The St. Joe Co. 600 12,938
Union Camp Corp. 1,300 86,938
Unisource Worldwide, Inc. 1,000 7,000
Westvaco Corp. 400 8,950
Weyerhaeuser Co. 3,900 217,425
Willamette Industries, Inc. 1,000 36,438
Workflow Management, Inc. (a) 900 6,356
1,775,071
TOTAL BASIC INDUSTRIES 6,956,050
CONSTRUCTION & REAL ESTATE -
1.7%
BUILDING MATERIALS - 0.4%
Aavid Thermal Technologies, 300 4,256
Inc. (a)
American Residential 100 363
Services, Inc. (a)
American Standard Companies, 1,100 36,919
Inc. (a)
Armstrong World Industries, 1,200 59,025
Inc.
Centex Construction Products, 700 24,981
Inc.
Crane Co. 300 8,231
Dal-Tile International, Inc. 2,000 18,375
(a)
Fastenal Co. 700 26,600
Fortune Brands, Inc. 4,000 120,500
Hussmann International, Inc. 400 5,650
Industrial Holdings, Inc. (a) 100 863
Johns Manville Corp. 1,100 19,319
Lafarge Corp. 400 12,750
Lone Star Industries, Inc. 900 29,700
Masco Corp. 6,200 162,750
Owens-Corning 1,400 44,538
ROHN Industries, Inc. (a) 300 600
RPM, Inc. 1,225 16,920
Sherwin-Williams Co. 4,200 101,063
Southdown, Inc. 376 17,743
T.J. International, Inc. 200 4,325
Tecumseh Products Co. Class A 1,000 49,250
Texas Industries, Inc. 300 7,388
USG Corp. 1,300 65,163
Vulcan Materials Co. 500 67,375
Watsco, Inc. Class A 150 1,753
York International Corp. 1,200 43,500
949,900
CONSTRUCTION - 0.1%
American Homestar Corp. (a) 200 1,475
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
CONSTRUCTION & REAL ESTATE -
CONTINUED
CONSTRUCTION - CONTINUED
Beazer Homes USA, Inc. (a) 700 $ 15,225
Centex Corp. 1,500 55,219
Clayton Homes, Inc. 875 10,828
D.R. Horton, Inc. 2,125 33,867
Engle Homes, Inc. 200 2,350
Fleetwood Enterprises, Inc. 1,200 38,925
Granite Construction, Inc. 600 14,738
Kaufman & Broad Home Corp. 300 6,750
NCI Building Systems, Inc. (a) 500 11,500
Oakwood Homes Corp. 200 3,225
Pulte Corp. 1,300 31,281
Standard Pacific Corp. 1,400 17,325
Toll Brothers, Inc. (a) 800 15,700
Vistana, Inc. (a) 200 2,188
Walter Industries, Inc. (a) 500 6,125
Webb (Del E.) Corp. 200 4,500
271,221
ENGINEERING - 0.1%
Able Telcom Holding Corp. (a) 600 4,163
Apogee Enterprises, Inc. 300 2,625
DSP Group, Inc. (a) 200 2,825
EG & G, Inc. 900 23,850
Fluor Corp. 2,100 73,894
Foster Wheeler Corp. 200 2,500
ICF Kaiser International, 300 281
Inc. (a)
IDM Environmental Corp. (a) 100 34
MasTec, Inc. (a) 100 2,513
Probusiness Services, Inc. (a) 400 13,300
Sylvan Learning Systems (a) 1,500 49,875
175,860
REAL ESTATE - 0.1%
Bluegreen Corp. (a) 400 2,575
Catellus Development Corp. (a) 2,800 40,425
CB Richard Ellis Services, 800 13,000
Inc. (a)
Fairfield Communities, Inc. 300 2,456
(a)
Insignia Financial Group, 333 4,350
Inc. (a)
Merry Land Properties, Inc. 50 275
(a)
Pierce Leahy Corp. (a) 100 2,475
Price Enterprises, Inc. 84 420
Rouse Co. (The) 1,500 35,063
Stewart Enterprises, Inc. 3,300 49,500
Class A
Vornado Operating Co. (a) 60 412
150,951
REAL ESTATE INVESTMENT TRUSTS
- - 1.0%
AMB Property Corp. 2,600 54,600
Apartment Investment & 1,631 63,813
Management Co. Class A
Archstone Communities Trust 3,400 66,513
Arden Realty Group, Inc. 1,700 39,738
AvalonBay Communities, Inc. 2,500 78,906
SHARES VALUE (NOTE 1)
Boston Properties, Inc. 2,200 $ 71,088
Brandywine Realty Trust 100 1,644
Camden Property Trust (SBI) 975 23,888
Capstead Mortgage Corp. 400 1,975
CarrAmerica Realty Corp. 600 12,900
Colonial Properties Trust 600 14,738
(SBI)
Cornerstone Properties, Inc. 500 7,563
Crescent Real Estate Equities 3,700 77,238
Co.
Developers Diversified Realty 1,600 25,400
Corp.
Duke Realty Investments, Inc. 2,400 52,350
Equity Inns, Inc. 100 944
Equity Office Properties Trust 5,540 142,655
Equity Residential Properties 3,030 124,230
Trust (SBI)
FelCor Lodging Trust, Inc. 1,268 29,957
First Industrial Realty 1,500 38,813
Trust, Inc.
First Union Real Estate 100 413
Equity & Mortgage Investments
Gables Residential Trust (SBI) 100 2,313
General Growth Properties, 500 16,875
Inc.
Glenborough Realty Trust, 200 3,613
Inc.
Glimcher Realty Trust (SBI) 100 1,481
Highwoods Properties, Inc. 1,400 33,513
Hospitality Properties Trust 1,900 48,925
(SBI)
Host Marriott Corp. 3,100 33,519
HRPT Properties Trust 5,000 68,438
Imperial Credit Commercial 1,000 9,063
Mortgage Investment Corp.
Indymac Mortgage Holdings, 2,400 25,500
Inc.
Irvine Apartments 1,200 39,450
Communities, Inc.
JDN Realty Corp. 150 3,150
Kilroy Realty Corp. 200 4,313
Kimco Realty Corp. 2,100 79,669
Liberty Property Trust (SBI) 1,600 35,000
Mack-Cali Realty Corp. 2,200 63,663
Meditrust Corp. unit 3,496 42,826
Mills Corp. 200 3,638
Nationwide Health Properties, 2,100 37,800
Inc.
New Plan Excel Realty Trust 1,800 37,350
Ocwen Asset Investment Corp. 300 1,556
Patriot American Hospitality, 3,812 20,728
Inc. unit
Post Properties, Inc. 1,000 35,688
Prentiss Properties Trust 800 16,000
(SBI)
Prison Realty Corp. (a) 650 12,959
ProLogis Trust 3,300 68,475
Public Storage, Inc. 1,500 38,250
Reckson Associates Realty 300 6,375
Corp.
Redwood Trust, Inc. 100 1,413
Simon Property Group, Inc. 4,300 109,381
Spieker Properties, Inc. 2,100 75,075
Starwood Financial Trust 500 25,000
Starwood Hotels & Resorts 3,583 111,073
Worldwide, Inc.
Sunstone Hotel Investors, 100 800
Inc.
Thornburg Mortgage Asset 100 944
Corp.
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
CONSTRUCTION & REAL ESTATE -
CONTINUED
REAL ESTATE INVESTMENT TRUSTS
- - CONTINUED
Trinet Corporate Realty 100 $ 2,519
Trust, Inc.
United Dominion Realty Trust, 1,400 13,825
Inc.
Vornado Realty Trust 2,300 79,063
Walden Residential 100 1,669
Properties, Inc.
Westfield America, Inc. 400 7,050
2,147,308
TOTAL CONSTRUCTION & REAL 3,695,240
ESTATE
DURABLES - 2.9%
AUTOS, TIRES, & ACCESSORIES -
1.8%
Arvin Industries, Inc. 500 18,125
AutoZone, Inc. (a) 3,300 115,500
Aviation Sales Co. (a) 700 31,719
Bandag, Inc. 300 9,506
Borg-Warner Automotive, Inc. 600 26,138
Breed Technologies, Inc. (a) 200 813
Casey's General Stores, Inc. 2,500 32,188
Cooper Tire & Rubber Co. 900 17,775
Copart, Inc. (a) 800 14,000
CSK Auto Corp. (a) 900 30,881
Cummins Engine Co., Inc. 1,000 41,000
Dana Corp. 2,256 85,164
Danaher Corp. 2,071 99,926
Dura Automotive Systems, Inc. 600 17,063
Class A (a)
Eaton Corp. 1,700 117,938
Excel Industries, Inc. 1,000 23,625
Federal Signal Corp. 700 16,406
Federal-Mogul Corp. 800 39,350
Ford Motor Co. 19,000 1,126,938
General Motors Corp. 10,200 842,138
Gentex Corp. (a) 2,200 47,713
Genuine Parts Co. 3,400 101,788
Getty Petroleum Marketing, 100 219
Inc. (a)
Goodyear Tire & Rubber Co. 3,200 148,000
Intermet Corp. 100 1,250
ITT Industries, Inc. 2,500 97,656
Johnson Controls, Inc. 1,900 116,850
Johnstown America Industries, 100 1,688
Inc. (a)
Kroll-O'Gara Co. (a) 900 27,788
Lear Corp. (a) 1,600 56,500
Mascotech, Inc. 200 3,025
Meritor Automotive, Inc. 300 4,763
Miller Industries, Inc. (a) 200 1,075
Navistar International Corp. 1,200 51,600
(a)
O'Reilly Automotive, Inc. (a) 600 26,363
OmniQuip International, Inc. 200 2,175
PACCAR, Inc. 1,900 79,563
Pep Boys-Manny, Moe & Jack 2,400 43,800
SHARES VALUE (NOTE 1)
Republic Industries, Inc. (a) 6,500 $ 79,625
Snap-On, Inc. 1,000 28,250
SPX Corp. 772 44,101
Standard Products Co. 100 1,500
Tower Automotive, Inc. (a) 1,300 24,213
TRW, Inc. 2,600 122,850
Ugly Duckling Corp. (a) 100 519
United Auto Group, Inc. (a) 200 1,475
Wabash National Corp. 300 3,694
3,824,236
CONSUMER DURABLES - 0.3%
Blyth Industries, Inc. (a) 1,000 27,000
Department 56, Inc. (a) 200 6,638
Dupont Photomasks, Inc. (a) 200 7,850
Libbey, Inc. 800 23,850
Minnesota Mining & 7,000 518,438
Manufacturing Co.
SAF T LOK, Inc. (a) 800 1,525
Samsonite Corp. (a) 146 867
Sola International, Inc. (a) 700 7,525
593,693
CONSUMER ELECTRONICS - 0.3%
Black & Decker Corp. 2,000 97,500
General Motors Corp. Class H 2,300 108,531
(a)
Harman International 800 30,600
Industries, Inc.
Maytag Corp. 2,000 112,125
Movado Group, Inc. 100 2,138
Newell Co. 3,400 144,500
Odetics, Inc. Class B (a) 400 3,350
Recoton Corp. (a) 600 8,400
Sunbeam Corp. 500 2,906
U.S. Industries, Inc. 1,300 21,125
Whirlpool Corp. 1,900 82,650
613,825
HOME FURNISHINGS - 0.1%
Applied Power, Inc. Class A 1,500 36,188
Ethan Allen Interiors, Inc. 1,000 45,000
Furniture Brands 1,900 40,613
International, Inc. (a)
Heilig-Meyers Co. 300 1,950
Knoll, Inc. (a) 100 1,913
La-Z-Boy, Inc. 600 11,175
Leggett & Platt, Inc. 2,200 46,063
Linens'n Things, Inc. (a) 1,200 43,200
Miller (Herman), Inc. 1,700 28,900
Restoration Hardware, Inc. 1,000 20,625
275,627
TEXTILES & APPAREL - 0.4%
Active Apparel Group, Inc. (a) 1,000 3,313
Ashworth, Inc. (a) 400 1,888
BEBE Stores, Inc. (a) 600 18,675
Bluefly, Inc. (a) 800 10,300
Burlington Industries, Inc. 100 619
(a)
Collins & Aikman Corp. 100 506
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
DURABLES - CONTINUED
TEXTILES & APPAREL - CONTINUED
Columbia Sportswear Co. (a) 100 $ 1,200
Donna Karan International, 100 625
Inc. (a)
Fruit of the Loom, Inc. Class 1,200 15,225
A (a)
Interface, Inc. Class A 3,100 29,547
Jones Apparel Group, Inc. (a) 1,700 47,494
Kellwood Co. 1,200 30,675
Liz Claiborne, Inc. 1,100 37,056
Mohawk Industries, Inc. (a) 400 13,000
Nautica Enterprises, Inc. (a) 2,000 30,000
NIKE, Inc. Class B 4,000 214,500
Nine West Group, Inc. (a) 300 6,731
North Face, Inc. (a) 1,300 16,738
Pacific Sunwear of 1,000 28,500
California, Inc. (a)
Polo Ralph Lauren Corp. Class 1,700 33,894
A (a)
Reebok International Ltd. (a) 2,000 32,250
Russell Corp. 1,700 33,150
Shaw Industries, Inc. 1,288 28,256
Sport-Haley, Inc. (a) 100 988
Springs Industries, Inc. 400 13,300
Class A
St. John Knits, Inc. 200 5,338
Stride Rite Corp. 800 8,250
Tarrant Apparel Group (a) 500 19,313
Timberland Co. Class A (a) 400 24,150
Unifi, Inc. 400 4,825
Unitog Co. 800 30,800
Vans, Inc. (a) 200 1,350
VF Corp. 1,700 81,813
Warnaco Group, Inc. Class A 1,200 27,000
WestPoint Stevens, Inc. Class 900 22,950
A (a)
Wolverine World Wide, Inc. 1,200 11,925
886,144
TOTAL DURABLES 6,193,525
ENERGY - 3.8%
ENERGY SERVICES - 0.5%
Atwood Oceanics, Inc. (a) 200 3,363
Baker Hughes, Inc. 6,450 116,100
BJ Services Co. (a) 2,300 32,344
CAL Dive International, Inc. 500 7,188
(a)
Diamond Offshore Drilling, 2,800 57,925
Inc.
ENSCO International, Inc. 800 7,100
Global Industries Ltd. (a) 3,000 15,188
Global Marine, Inc. (a) 1,000 7,750
Halliburton Co. 6,300 177,975
Helmerich & Payne, Inc. 1,500 24,469
Key Energy Group, Inc. (a) 300 1,106
Marine Drilling Companies, 1,000 6,375
Inc. (a)
Maverick Tube Corp. (a) 100 563
McDermott International, Inc. 300 5,981
Nabors Industries, Inc. (a) 2,900 33,350
SHARES VALUE (NOTE 1)
Newpark Resources, Inc. (a) 1,200 $ 6,300
Noble Drilling Corp. (a) 1,100 13,613
Oceaneering International, 100 1,000
Inc. (a)
Offshore Logistics, Inc. (a) 100 872
Parker Drilling Co. (a) 400 1,000
Patterson Energy, Inc. (a) 1,000 2,813
Pool Energy Services Co. (a) 1,200 12,188
Pride International, Inc. (a) 1,200 6,000
R&B Falcon Corp. (a) 5,180 28,490
Rowan Companies, Inc. (a) 500 4,313
Schlumberger Ltd. 9,072 440,559
SEACOR SMIT, Inc. (a) 500 19,688
Smith International, Inc. 200 4,863
Superior Energy Services, 100 275
Inc. (a)
Tidewater, Inc. 1,400 26,338
Transocean Offshore, Inc. 2,600 53,625
Varco International, Inc. (a) 300 2,325
Zapata Corp. 500 4,813
1,125,852
OIL & GAS - 3.3%
Amerada Hess Corp. 2,000 90,750
American International 100 100
Petroleum Corp. (a)
Anadarko Petroleum Corp. 2,300 63,250
Apache Corp. 2,800 55,825
Atlantic Richfield Co. 5,800 316,825
Barrett Resources Corp. (a) 600 9,863
Bellwether Exploration Co. (a) 100 338
Benton Oil & Gas Co. (a) 100 306
Burlington Resources, Inc. 3,600 116,550
Chevron Corp. 11,100 853,313
Coastal Corp. (The) 4,200 134,400
Coho Energy, Inc. (a) 300 178
Comstock Resources, Inc. (a) 100 281
Conoco, Inc. Class A 2,400 48,750
Cooper Cameron Corp. (a) 600 13,875
Devon Energy Corp. 1,200 28,125
EEX Corp. (a) 333 2,019
Enron Oil & Gas Co. 3,700 61,050
Evergreen Resources, Inc. (a) 500 7,844
Exxon Corp. 38,800 2,582,625
Forcenergy, Inc. (a) 300 263
Friede Goldman International, 600 6,413
Inc. (a)
Frontier Oil Corp. (a) 100 525
Gothic Energy Corp. (a) 200 100
Gulf Island Fabrication, Inc. 300 1,950
(a)
Harken Energy Corp. (a) 1,100 1,650
Houston Exploration Co. (a) 100 1,544
IRI International Corp. (a) 500 1,563
KCS Energy, Inc. 100 131
Kelley Oil & Gas Corp. (a) 200 106
Kerr-McGee Corp. 1,600 45,700
Louis Dreyfus Natural Gas 200 2,388
Corp. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Mobil Corp. 12,100 $ 1,006,569
Murphy Oil Corp. 400 13,675
National Energy Group, Inc. 500 63
(a)
National-Oilwell, Inc. (a) 200 1,775
Newfield Exploration Co. (a) 800 13,000
Noble Affiliates, Inc. 1,600 36,200
Nuevo Energy Co. (a) 300 2,100
Occidental Petroleum Corp. 3,500 52,719
Ocean Energy, Inc. (a) 1,728 7,344
Oryx Energy Co. (a) 2,900 30,088
Panaco, Inc. (a) 100 103
Patina Oil & Gas Corp. 100 288
PennzEnergy Co. 2,100 19,688
Pennzoil-Quaker State Co. 2,792 34,726
Phillips Petroleum Co. 5,000 193,438
Pioneer Natural Resources Co. 3,300 17,119
Pogo Producing Co. 300 2,775
Range Resources Corp. 100 194
Resource America, Inc. Class A 1,200 12,975
Santa Fe Energy Resources, 4,400 23,100
Inc. (a)
Seagull Energy Corp. (a) 500 2,375
Seven Seas Petroleum, Inc. (a) 500 2,000
Snyder Oil Corp. 2,000 20,875
St. Mary Land & Exploration 300 4,688
Co.
Sunoco, Inc. 1,900 57,831
Swift Energy Co. (a) 300 1,800
Tesoro Petroleum Corp. (a) 600 4,800
Texaco, Inc. 9,300 433,031
Titan Exploration, Inc. (a) 100 466
Tom Brown, Inc. (a) 1,000 9,688
Tosco Corp. 2,300 47,581
Ultramar Diamond Shamrock 1,500 29,625
Corp.
UNIFAB International, Inc. (a) 100 681
Union Pacific Resources 5,900 52,731
Group, Inc.
Unocal Corp. 5,000 140,938
USX-Marathon Group 3,900 80,681
Valero Energy Corp. 600 10,538
Vastar Resources, Inc. 1,800 69,300
Veritas DGC, Inc. (a) 600 5,663
Vintage Petroleum, Inc. 300 1,331
Weatherford International, 680 11,560
Inc. (a)
6,904,722
TOTAL ENERGY 8,030,574
FINANCE - 16.4%
BANKS - 6.5%
Advanta Corp. 1,000 11,688
AmSouth Bancorp. 2,850 133,950
Associated Banc-Corp. 2,225 69,114
BancWest Corp. 300 11,756
SHARES VALUE (NOTE 1)
Bank of Commerce 300 $ 5,663
Bank of New York Co., Inc. 11,300 394,794
Bank One Corp. 18,167 976,476
BankAmerica Corp. 27,372 1,787,734
BankBoston Corp. 4,400 177,925
BB&T Corp. 5,632 213,312
Capital One Financial Corp. 900 114,863
CCB Financial Corp. 1,100 57,131
Centura Banks, Inc. 900 57,600
Chase Manhattan Corp. 13,200 1,051,050
City National Corp. 600 19,350
CNB Bancshares, Inc. 1,213 48,747
Colonial Bancgroup, Inc. 400 4,950
Comerica, Inc. 3,200 212,000
Commerce Bancshares, Inc. 1,540 62,755
Community First Bankshares, 1,400 27,300
Inc.
Compass Bancshares, Inc. 1,700 62,263
Cullen Frost Bankers, Inc. 1,000 47,313
Fifth Third Bancorp 4,901 323,772
First American Corp. 2,217 89,927
First Security Corp. 4,600 85,387
First Tennessee National 3,000 114,188
Corp.
First Union Corp. 15,205 810,617
First Virginia Banks, Inc. 700 33,381
Firstar Corp. 4,182 350,243
Firstmerit Corp. 300 7,331
Fulton Financial Corp. 125 2,766
Hibernia Corp. Class A 4,700 76,081
HUBCO, Inc. 1,785 58,570
Huntington Bancshares, Inc. 4,510 143,193
Imperial Bancorp 1,404 25,623
KeyCorp 7,800 251,550
Keystone Financial, Inc. 1,800 65,025
M&T Bank Corp. 112 53,284
Mainstreet Financial Corp. 400 17,900
Marshall & Ilsley Corp. 2,300 128,800
Mellon Bank Corp. 4,900 331,363
Mercantile Bancorp., Inc. 3,300 150,563
Mercantile Bankshares Corp. 2,000 72,875
Morgan (JP) & Co., Inc. 2,500 278,594
National City Corp. 5,810 405,974
National Commmerce Bancorp 3,300 68,475
North Fork Bancorp, Inc. 2,478 54,516
Northern Trust Corp. 2,200 196,625
Pacific Century Financial 900 19,744
Corp.
Peoples Heritage Financial 3,432 58,344
Group, Inc.
PNC Financial Corp. 5,500 286,344
Popular, Inc. 1,200 39,825
Provident Financial Group, 1,300 50,700
Inc.
R&G Financial Corp. Class B 200 3,725
Regions Financial Corp. 4,558 173,204
Republic of New York Corp. 2,700 122,344
Riggs National Corp. 700 12,950
Silicon Valley Bancshares (a) 1,400 26,863
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
BANKS - CONTINUED
SouthTrust Corp. 3,600 $ 144,225
State Street Corp. 3,100 237,731
Summit Bancorp 3,700 142,913
SunTrust Banks, Inc. 5,628 382,352
Synovus Finanical Corp. 2,900 69,056
Trustmark Corp. 400 8,475
U.S. Bancorp 12,800 413,600
Union Planters Corp. 2,887 130,456
UnionBanCal Corp. 1,900 59,731
United Bankshares, Inc. 600 14,475
US Trust Corp. 600 44,925
UST Corp. 841 17,608
Valley National Bancorp 325 8,328
Wachovia Corp. 3,663 311,584
Wells Fargo & Co. 25,100 922,425
Westamerica Bancorp. 1,600 53,600
Western Bancorp 1,100 33,894
Whitney Holding Corp. 100 3,275
Wilmington Trust Corp. 100 5,669
Zions Bancorp 1,768 113,152
13,655,874
CREDIT & OTHER FINANCE - 2.7%
Aames Financial Corp. 2,900 5,981
Actrade International Ltd. (a) 500 7,156
Allied Capital Corp. 1,300 22,913
American Express Co. 7,000 759,500
AmeriCredit Corp. (a) 2,700 30,038
AMRESCO, Inc. 2,300 21,778
Arcadia Financial Ltd. (a) 300 1,144
Associates First Capital 12,610 512,281
Corp. Class A
Cash America International, 400 5,050
Inc.
CIT Group, Inc. Class A 3,500 103,250
Citigroup, Inc. 36,269 2,130,804
Coast Federal Litigation 200 1,363
Contingent Payment Rights
Trust rights 12/31/00 (a)
Concord EFS, Inc. (a) 2,250 71,859
Consumer Portfolio Services, 100 375
Inc. (a)
ContiFinancial Corp. (a) 400 1,400
Countrywide Credit 2,600 98,475
Industries, Inc.
Credit Acceptance Corp. (a) 200 1,200
Doral Financial Corp. 1,200 22,725
Equitable Companies (The), 3,300 222,956
Inc.
Finova Group, Inc. 1,400 71,138
First Alliance Corp. (a) 400 1,450
FIRSTPLUS Financial Group, 2,400 3,300
Inc. (a)
Fleet Financial Group, Inc. 8,830 379,138
Franchise Mortgage Acceptance 300 2,513
Co. (a)
Greenpoint Financial Corp. 2,100 64,444
Headlands Mortgage Co. (a) 1,000 18,875
HealthCare Financial 500 13,063
Partners, Inc. (a)
SHARES VALUE (NOTE 1)
Heller Financial, Inc. Class A 900 $ 21,769
Household International, Inc. 7,519 305,459
IMC Mortgage Co. (a) 400 163
Imperial Credit Industries (a) 700 6,038
Life Financial Corp. (a) 200 775
Long Beach Financial Corp. (a) 400 3,800
MBNA Corp. 11,900 288,575
Mercury Finance Co. (a) 2,800 280
Metris Companies, Inc. 695 29,885
Old Kent Financial Corp. 1,940 85,117
Providian Financial Corp. 2,050 209,356
Resource Bancshares Mortgage 1,105 15,470
Group, Inc.
Southern Pacific Funding 600 -
Corp. (a)
Transamerica Corp. 2,800 203,175
United Companies Financial 300 131
Corp.
5,744,162
FEDERAL SPONSORED CREDIT - 0.9%
Fannie Mae 16,200 1,134,000
Freddie Mac 10,300 606,413
SLM Holding Corp. 2,250 96,469
1,836,882
INSURANCE - 4.3%
20th Century Industries, Inc. 300 5,738
Aetna, Inc. 2,700 199,969
AFLAC, Inc. 3,700 163,263
Alfa Corp. 100 1,675
Allmerica Financial Corp. 1,600 85,400
Allstate Corp. 12,200 457,500
Ambac Financial Group, Inc. 1,700 95,200
American Annuity Group, Inc. 200 4,338
American Bankers Insurance 1,300 62,400
Group, Inc.
American Financial Group, 300 11,081
Inc.
American General Corp. 3,429 251,174
American International Group, 19,666 2,240,695
Inc.
Amerin Corp. (a) 1,400 30,275
Amerus Life Holdings, Inc. 867 18,207
Aon Corp. 2,100 123,769
Argonaut Group, Inc. 200 4,963
ARM Financial Group, Inc. 600 9,338
Class A
Atlantic American Corp. (a) 100 419
Berkley (W.R.) Corp. 1,100 31,488
Berkshire Hathaway, Inc. 21 1,493,100
Class A (a)
Capital Re Corp. 1,200 20,100
Chicago Title Corp. 300 10,519
ChoicePoint, Inc. (a) 100 5,200
Chubb Corp. (The) 3,200 191,200
CIGNA Corp. 2,800 219,800
Cincinnati Financial Corp. 3,100 108,694
CMAC Investments Corp. 1,000 41,313
CNA Financial Corp. (a) 2,000 67,875
Commerce Group, Inc. 100 2,675
Conseco, Inc. 4,140 123,941
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Delphi Financial Group, Inc. 704 $ 33,748
Class A
Enhance Financial Services 1,100 26,056
Group, Inc.
Envoy Corp. (a) 500 24,250
Erie Indemnity Co. Class A 300 8,138
Everest Reinsurance Holdings, 1,700 56,419
Inc.
Executive Risk, Inc. 500 35,125
Fidelity National Financial, 451 9,020
Inc.
Financial Security Assurance 1,200 63,375
Holdings Ltd.
First American Financial 1,000 23,438
Corp.
First Health Group Corp. (a) 2,200 35,200
FPIC Insurance Group, Inc. (a) 500 21,688
Fremont General Corp. 800 15,800
Frontier Insurance Group, 1,830 24,019
Inc.
Harleysville Group, Inc. 100 2,050
Hartford Financial Services 4,400 237,875
Group, Inc.
Hartford Life, Inc. Class A 900 52,200
HCC Insurance Holdings, Inc. 300 5,213
Healthcare Recoveries, Inc. 400 3,325
(a)
Healthplan Services Corp. 100 844
Horace Mann Educators Corp. 600 14,063
HSB Group, Inc. 400 14,800
INSpire Insurance Solutions, 700 11,375
Inc. (a)
Jefferson-Pilot Corp. 1,800 122,062
LandAmerica Financial Group, 300 10,781
Inc.
Lincoln National Corp. 2,000 189,375
Loews Corp. 2,300 179,831
Marsh & McLennan Companies, 4,650 329,278
Inc.
MBIA, Inc. 993 61,132
Medical Assurance, Inc. 300 8,888
Mercury General Corp. 700 24,413
MGIC Investment Corp. 2,400 81,750
NAC Re Corp. 900 48,656
Nationwide Financial 1,100 49,981
Services, Inc. Class A
Ohio Casualty Corp. 1,200 48,450
Old Republic International 2,850 53,616
Corp.
Orion Capital Corp. 1,000 33,063
Penncorp Financial Group, 1,100 756
Inc.
PMI Group, Inc. 1,100 47,438
Presidential Life Corp. 100 1,781
Progressive Corp. 900 115,650
Protective Life Corp. 386 13,317
Provident Companies, Inc. 2,300 75,325
Reinsurance Group of America, 600 38,663
Inc.
Reliance Group Holdings, Inc. 600 6,188
Reliastar Financial Corp. 1,900 86,213
SAFECO Corp. 3,200 128,600
Selective Insurance Group, 200 3,644
Inc.
St. Paul Companies, Inc. (The) 4,206 136,169
Stewart Information Services 200 6,663
Corp.
SHARES VALUE (NOTE 1)
TIG Holdings, Inc. 2,100 $ 33,600
Torchmark Corp. 2,900 96,425
Transatlantic Holdings, Inc. 800 59,750
Travelers Property Casualty 2,000 75,875
Corp. Class A
UICI (a) 600 13,800
Unitrin, Inc. 1,000 65,375
UNUM Corp. 2,700 120,825
Vesta Insurance Group Corp. 400 2,125
9,168,788
SAVINGS & LOANS - 0.6%
Astoria Financial Corp. 1,875 84,961
Bank Plus Corp. (a) 1,100 4,813
Bank United Corp. Class A 1,300 51,350
BankUnited Financial Corp. 500 3,531
Class A (a)
Bay View Capital Corp. 400 7,975
CFS Bancorp, Inc. 800 8,200
Charter One Financial, Inc. 4,009 115,509
Commercial Federal Corp. 2,350 51,259
Dime Bancorp, Inc. 600 14,850
Golden State Bancorp, Inc. 1,136 20,235
Golden West Financial Corp. 1,300 122,119
Independence Community Bank 3,400 51,850
Corp.
Ocwen Financial Corp. (a) 300 2,400
People's Bank 100 2,800
Peoples Bancorp, Inc. 1,200 11,700
Provident Bancshares Corp. 415 10,686
Queens County Bancorp, Inc. 900 26,156
Reliance BanCorp, Inc. 300 9,188
Republic Security Financial 4,600 41,113
Corp.
Roslyn Bancorp, Inc. 4,960 80,910
Seacoast Financial Services 638 6,260
Corp.
Security First Technologies 300 19,688
Corp. (a)
Sovereign Bancorp, Inc. 5,434 66,567
St. Paul Bancorp, Inc. 1,500 32,813
Sterling Financial Corp. (a) 100 1,738
TCF Financial Corp. 2,800 67,375
Washington Federal, Inc. 1,221 27,473
Washington Mutual, Inc. 8,440 337,600
Webster Financial Corp. 1,868 57,091
Westernbank Puerto Rico 200 3,075
1,341,285
SECURITIES INDUSTRY - 1.4%
Acacia Research Corp. (a) 400 1,500
Alliance Capital Management LP 1,500 37,219
Ameritrade Holding Corp. 1,600 78,000
Class A (a)
Bear Stearns Companies, Inc. 2,295 98,255
Donaldson Lufkin & Jenrette, 1,600 91,200
Inc.
E Trade Group, Inc. (a) 2,200 101,200
Edwards (A.G.), Inc. 2,300 74,894
Franklin Resources, Inc. 4,700 149,519
Friedman, Billings, Ramsey 300 1,744
Group, Inc. Class A (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
SECURITIES INDUSTRY - CONTINUED
Hambrecht & Quist Group (a) 1,000 $ 26,625
JB Oxford Holdings, Inc. (a) 1,900 19,119
Jefferies Group, Inc. 600 23,663
Leap Wireless International, 1,400 8,313
Inc. (a)
Legg Mason, Inc. 1,200 33,975
Lehman Brothers Holdings, 1,500 79,500
Inc.
Market Guide, Inc. (a) 300 3,225
Merrill Lynch & Co., Inc. 5,400 414,450
MIPS Technologies, Inc. (a) 1,000 37,250
Morgan Stanley, Dean Witter & 9,100 823,550
Co.
National Discount Brokers 1,000 25,938
Group, Inc. (a)
NVEST L.P. 100 2,394
PaineWebber Group, Inc. 1,650 61,669
PIMCO Advisors Holdings LP 1,167 33,551
Unit
Pioneer Group, Inc. 1,000 16,313
Price (T. Rowe) Associates, 2,800 86,275
Inc.
Raymond James Financial, Inc. 250 4,563
Schwab (Charles) Corp. 6,200 462,287
Security Capital Group, Inc. 2,100 25,725
Class B (a)
Siebert Financial Corp. 700 19,644
Southwest Securities Group, 800 23,050
Inc.
United Asset Management Corp. 2,000 45,375
Waddell & Reed Financial, 679 12,816
Inc. Class A
2,922,801
TOTAL FINANCE 34,669,792
HEALTH - 11.1%
DRUGS & PHARMACEUTICALS - 7.4%
Advanced Tissue Sciences, 400 1,100
Inc. (a)
Agouron Pharmaceuticals, Inc. 600 34,238
(a)
Algos Pharmaceutical Corp. (a) 300 9,000
Alkermes, Inc. (a) 700 19,644
Allergan Specialty 15 146
Therapeutics, Inc. Class A
Allergan, Inc. 1,400 114,100
Alpharma, Inc. Class A 1,100 41,663
ALZA Corp. Class A. (a) 1,900 99,631
American Home Products Corp. 20,800 1,237,600
Amgen, Inc. (a) 3,900 487,013
Andrx Corp. (a) 500 33,938
Anesta Corp. (a) 600 11,888
Arqule, Inc. (a) 400 2,325
Aviron (a) 900 19,294
AXYS Pharmaceuticals, Inc. (a) 335 1,549
Barr Laboratories, Inc. (a) 600 22,200
Bio-Technology General Corp. 600 3,731
(a)
Biogen, Inc. (a) 900 86,513
Biomatrix, Inc. (a) 300 20,850
BioTime, Inc. (a) 200 3,225
BioTime, Inc. rights 3/9/99 200 127
(a)
SHARES VALUE (NOTE 1)
Bristol-Myers Squibb Co. 15,900 $ 2,002,406
Cambrex Corp. 800 19,150
Celgene Corp. (a) 100 1,294
Cell Genesys, Inc. (a) 100 613
Centocor, Inc. (a) 1,500 62,344
Cephalon, Inc. (a) 200 1,538
Chattem, Inc. (a) 400 12,050
Chiron Corp. (a) 3,800 80,038
Columbia Laboratories, Inc. 100 500
(a)
COR Therapeutics, Inc. (a) 100 981
Coulter Pharmaceutical, Inc. 300 6,113
(a)
Creative Biomolecules, Inc. 100 269
(a)
Curative Health Services, 100 1,125
Inc. (a)
Cytyc Corp. (a) 200 3,625
Depotech Corp. (a) 100 281
Dura Pharmaceuticals, Inc. (a) 1,500 21,094
EntreMed, Inc. (a) 200 3,738
Enzo Biochem, Inc. 105 1,155
Enzon, Inc. (a) 1,200 16,650
Forest Laboratories, Inc. (a) 1,500 74,156
GelTex Pharmaceuticals, Inc. 1,200 20,625
(a)
Genentech, Inc. (special) (a) 2,500 199,531
Genzyme Corp.:
(General Division) 1,700 76,500
(Molecular Oncology) (a) 118 450
Geron Corp. (a) 900 9,506
Gilead Sciences, Inc. (a) 900 37,125
Gliatech, Inc. (a) 300 8,100
Guilford Pharmaceuticals, 300 3,806
Inc. (a)
Hemispherx Biopharma, Inc. (a) 800 4,550
Herbalife International, Inc. 33 441
Class A
Human Genome Sciences, Inc. 400 11,950
(a)
ICN Pharmaceuticals, Inc. 500 10,938
ICOS Corp. (a) 1,200 29,400
IDEC Pharmaceuticals Corp. (a) 600 25,988
Idexx Laboratories, Inc. (a) 900 20,138
IGEN International, Inc. (a) 200 6,050
Immunex Corp. (a) 700 99,050
Incyte Pharmaceuticals, Inc. 700 19,644
(a)
Inhale Therapeutic Systems, 600 16,500
Inc. (a)
Integrated Process Equipment 200 2,250
Corp. (a)
Isis Pharmaceuticals Co. (a) 300 3,619
Jones Pharma, Inc. 1,000 28,125
King Pharmaceuticals, Inc. (a) 1,400 33,775
Kos Pharmaceuticals, Inc. (a) 300 1,781
Ligand Pharmaceuticals, Inc. 600 5,888
Class B (a)
Lilly (Eli) & Co. 17,500 1,657,031
Medicis Pharmaceutical Corp. 750 28,313
Class A (a)
Medimmune, Inc. (a) 800 44,000
Merck & Co., Inc. 38,400 3,139,200
Microvision, Inc. (a) 100 1,438
Millennium Pharmaceuticals, 1,100 34,169
Inc. (a)
Mylan Laboratories, Inc. 2,800 76,475
Nature's Sunshine Products, 100 1,225
Inc.
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS -
CONTINUED
NBTY, Inc. (a) 2,400 $ 14,400
NeoRX Corp. (a) 700 1,094
NeoTherapeutics, Inc. (a) 300 2,419
NeXstar Pharmeceuticals, Inc. 100 1,381
(a)
Organogenesis, Inc. (a) 250 3,438
PAREXEL International Corp. 1,100 22,894
(a)
PathoGenesis Corp. (a) 700 32,069
Pfizer, Inc. 20,800 2,744,300
Pharmaceutical Product 1,000 34,750
Development, Inc. (a)
Pharmacopeia, Inc. (a) 100 950
Pharmacyclics, Inc. (a) 200 3,800
Protein Design Labs, Inc. (a) 200 3,300
Pure World, Inc. 330 1,588
Quintiles Transnational Corp. 1,800 77,625
(a)
Rexall Sundown, Inc. (a) 700 10,019
Roberts Pharmaceutical Corp. 600 13,575
(a)
Sangstat Medical Corp. (a) 900 20,138
Schering-Plough Corp. 23,200 1,297,750
Scios, Inc. (a) 400 3,700
Sepracor, Inc. (a) 500 62,375
Sequus Pharmaceuticals, Inc. 800 16,350
(a)
Serologicals Corp. (a) 550 9,831
Sigma-Aldrich Corp. 2,700 71,213
SonoSight, Inc. (a) 33 390
Sugen, Inc. (a) 400 6,975
Technical Chemicals & 100 134
Products, Inc. (a)
Texas Biotechnology Corp. (a) 100 425
Theragenics Corp. (a) 600 4,088
Trimeris, Inc. (a) 1,200 18,675
Twinlab Corp. (a) 1,200 10,238
Vertex Pharmaceuticals, Inc. 600 14,100
(a)
Vical, Inc. (a) 400 5,100
ViroPharma, Inc. (a) 1,100 9,144
Vivus, Inc. (a) 200 519
Warner-Lambert Co. 13,000 897,813
Watson Pharmaceuticals, Inc. 1,139 55,028
(a)
Zonagen, Inc. (a) 200 5,525
15,693,589
MEDICAL EQUIPMENT & SUPPLIES
- - 3.1%
Abbott Laboratories 23,700 1,100,569
ADAC Laboratories (a) 1,300 23,238
AmeriSource Health Corp. 700 52,238
Class A (a)
Ballard Medical Products 1,500 35,906
Bard (C.R.), Inc. 1,000 56,375
Bausch & Lomb, Inc. 1,400 84,438
Baxter International, Inc. 4,000 281,500
Becton, Dickinson & Co. 4,900 164,150
Bergen Brunswig Corp. Class A 1,400 34,213
Bindley Western Industries, 666 17,524
Inc.
Biomet, Inc. 2,500 91,719
SHARES VALUE (NOTE 1)
Boston Scientific Corp. (a) 5,600 $ 148,400
Cardinal Health, Inc. 4,668 336,971
Closure Medical Corp. (a) 600 17,475
Coherent, Inc. (a) 200 2,988
CONMED Corp. (a) 400 12,350
Cooper Companies, Inc. (a) 100 1,463
Cyberonics, Inc. (a) 200 1,763
Cygnus, Inc. (a) 100 575
Datascope Corp. 300 7,838
Dentsply International, Inc. 1,900 48,450
Eclipse Surgical Technologies 300 3,375
(a)
Guidant Corp. 4,500 256,500
Haemonetics Corp. (a) 100 1,669
Heartport, Inc. (a) 200 1,325
Henry Schein, Inc. (a) 1,400 35,875
Hillenbrand Industries, Inc. 1,000 41,875
Hologic, Inc. (a) 200 2,013
I-Stat Corp. (a) 100 1,075
Imatron, Inc. (a) 1,500 2,063
Interpore International (a) 100 453
Invacare Corp. 1,100 26,125
Johnson & Johnson 21,300 1,818,488
Mallinckrodt, Inc. 1,600 49,500
McKesson HBOC, Inc. 4,757 323,476
Medtronic, Inc. 9,084 641,558
Mentor Corp. 600 9,225
Millipore Corp. 400 11,150
MiniMed, Inc. (a) 400 34,100
NCS HealthCare, Inc. (a) 700 9,931
Neoprobe Corp. (a) 100 125
Novoste Corp. (a) 500 12,813
Oakley, Inc. (a) 400 3,325
Ocular Sciences, Inc. (a) 500 12,250
Omnicare, Inc. 2,100 50,269
Osteotech, Inc. (a) 500 27,063
Pall Corp. 2,700 57,206
Patterson Dental Co. (a) 1,200 48,600
Perclose, Inc. (a) 600 25,350
Perrigo Co. (a) 3,000 25,125
PharMerica, Inc. (a) 3,336 18,765
PLC Systems, Inc. (a) 400 1,600
Priority Healthcare Corp. (a) 700 27,256
Priority Healthcare Corp. 298 11,603
Class A (a)
PSS World Medical, Inc. (a) 2,400 27,300
Quigley Corp. (a) 200 1,025
Resmed, Inc. (a) 600 18,600
Respironics, Inc. (a) 500 6,406
Sabratek Corp. (a) 900 16,988
Schick Technologies, Inc. (a) 1,800 8,550
Sonus Pharmaceuticals, Inc. 200 1,475
(a)
Spacelabs Medical, Inc. (a) 500 8,875
St. Jude Medical, Inc. (a) 472 11,859
Steris Corp. (a) 1,200 39,450
Stryker Corp. 900 42,525
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES
- - CONTINUED
Sybron International, Inc. (a) 500 $ 12,281
Techne Corp. (a) 1,100 27,500
Teleflex, Inc. 200 7,113
Thermo Cardiosystems, Inc. (a) 100 944
Uromed Corp. (a) 20 31
VISX, Inc. (a) 800 49,400
Wesley Jessen Visioncare, 400 10,400
Inc. (a)
Xomed Surgical Products, Inc. 650 23,644
(a)
Zila, Inc. (a) 4,300 17,603
6,443,238
MEDICAL FACILITIES MANAGEMENT
- - 0.6%
Advance Paradigm, Inc. (a) 300 10,819
Alternative Living Services, 500 10,250
Inc. (a)
American Healthcorp, Inc. (a) 100 1,125
American HomePatient, Inc. (a) 300 731
Amsurg Corp. Class A (a) 9 79
Apria Healthcare Group, Inc. 400 3,575
(a)
ARV Assisted Living, Inc. (a) 100 463
Beverly Enterprises, Inc. (a) 1,000 5,188
Columbia/HCA Healthcare Corp. 9,900 176,963
Compdent Corp. (a) 200 2,550
Concentra Managed Care, Inc. 1,800 19,125
(a)
Covance, Inc. (a) 1,700 46,856
Coventry Health Care, Inc. (a) 300 3,216
Foundation Health Systems, 1,900 15,200
Inc. Class A (a)
Genesis Health Ventures, Inc. 800 4,400
(a)
HCR Manor Care, Inc. (a) 1,300 29,088
Health Management Associates, 6,350 82,153
Inc. Class A (a)
HEALTHSOUTH Corp. (a) 5,419 62,996
Humana, Inc. (a) 1,600 28,000
IMPATH, Inc. (a) 300 7,556
Integrated Health Services, 2,200 13,063
Inc.
Laser Vision Centers, Inc. (a) 700 19,513
Lincare Holdings, Inc. (a) 1,600 57,000
Mariner Post-Acute Network, 1,100 2,406
Inc. (a)
Medical Resources, Inc. (a) 66 149
Medquist, Inc. (a) 500 17,094
Mid-Atlantic Medical 200 1,563
Services, Inc. (a)
NovaCare, Inc. (a) 300 638
Orthodontic Centers of 700 10,500
America, Inc. (a)
Oxford Health Plans, Inc. (a) 400 7,575
PacifiCare Health Systems, 1,000 72,250
Inc. Class B (a)
Pediatrix Medical Group (a) 600 18,525
Phycor, Inc. (a) 1,800 9,788
PhyMatrix Corp. (a) 200 363
Physician Reliance Network, 300 2,719
Inc. (a)
Province Healthcare Co. (a) 1,400 21,263
Quest Diagnostics, Inc. (a) 100 2,138
SHARES VALUE (NOTE 1)
Quorum Health Group, Inc. (a) 1,700 $ 15,725
Renal Care Group, Inc. (a) 1,650 32,691
Res-Care, Inc. (a) 200 4,750
Sun Healthcare Group, Inc. (a) 2,900 3,988
Sunrise Assisted Living, Inc. 500 19,313
(a)
Tenet Healthcare Corp. (a) 6,300 124,031
Total Renal Care Holdings, 1,667 14,795
Inc. (a)
Trigon Healthcare, Inc. (a) 1,000 35,063
United HealthCare Corp. 2,500 123,281
Universal Health Services, 1,200 48,750
Inc. Class B (a)
Urologix, Inc. (a) 200 725
Ventas, Inc. 400 3,225
Wellpoint Health Networks, 900 70,988
Inc. (a)
1,264,205
TOTAL HEALTH 23,401,032
HOLDING COMPANIES - 0.0%
Leucadia National Corp. (a) 500 14,906
Triarc Companies, Inc. Class 100 1,588
A (a)
16,494
INDUSTRIAL MACHINERY &
EQUIPMENT - 4.3%
ELECTRICAL EQUIPMENT - 3.1%
Adtran, Inc. (a) 400 8,200
Advanced Lighting 1,000 7,250
Technologies, Inc. (a)
American Power Conversion 1,100 39,463
Corp. (a)
Anicom, Inc. (a) 100 694
ANTEC Corp. (a) 1,300 36,238
Avid Technology, Inc. (a) 700 20,519
BMC Industries, Inc. 300 1,463
California Microwave, Inc. (a) 100 1,013
Cymer, Inc. (a) 900 20,588
Emerson Electric Co. 7,843 450,482
General Electric Co. 52,803 5,296,801
General Instrument Corp. (a) 2,100 61,425
Genlyte Group, Inc. (a) 300 5,428
Grainger (W.W.), Inc. 2,000 89,000
Harris Corp. 2,300 71,588
Honeywell, Inc. 2,500 174,844
Hubbell, Inc. Class B 2,100 78,225
Hughes Supply, Inc. 100 2,019
IEC Electronics Corp. (a) 100 394
L-3 Communications Holdings, 900 38,588
Inc. (a)
Littelfuse, Inc. (a) 800 13,650
MagneTek, Inc. (a) 100 1,088
Omnipoint Corp. (a) 700 8,138
Ortel Corp. (a) 300 2,400
Pinnacle Systems (a) 500 17,906
Powerwave Technologies, Inc. 800 18,800
(a)
Rofin Sinar Technologies, 300 2,438
Inc. (a)
Roper Industries, Inc. 100 2,213
Scientific-Atlanta, Inc. 1,600 51,900
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
ELECTRICAL EQUIPMENT -
CONTINUED
Sensormatic Electronics Corp. 400 $ 4,200
(a)
SLI, Inc. (a) 350 7,831
Smith (A.O.) Corp. Class B 150 3,197
Spectrian Corp. (a) 800 9,350
VWR Scientific Products Corp. 200 4,638
(a)
Zoltek Companies, Inc. (a) 100 859
6,552,830
INDUSTRIAL MACHINERY &
EQUIPMENT - 0.9%
AGCO Corp. 1,600 10,500
Astec Industries, Inc. (a) 600 16,500
Briggs & Stratton Corp. 800 39,050
Brooks Automation, Inc. (a) 800 17,500
Case Corp. 2,100 40,950
Caterpillar, Inc. 6,300 287,044
Coltec Industries, Inc. (a) 1,200 21,600
Cooper Industries, Inc. 2,400 105,000
CUNO, Inc. (a) 400 6,025
Deere & Co. 3,900 127,481
Dover Corp. 4,600 156,400
DT Industries, Inc. 300 3,300
Exide Corp. 1,200 18,000
Flow International Corp. (a) 600 5,438
Flowserve Corp. 800 13,250
FSI International, Inc. (a) 100 975
Harnischfeger Industries, 1,500 11,531
Inc.
Illinois Tool Works, Inc. 4,400 302,500
Ingersoll-Rand Co. 2,600 123,500
Ionics, Inc. (a) 200 5,575
JLG Industries, Inc. 200 2,813
JLK Direct Distrution, Inc. 300 3,169
Class A (a)
Kaydon Corp. 700 21,350
Kennametal, Inc. 1,000 20,813
Kuhlman Corp. 800 30,700
Manitowoc Co., Inc. 100 3,688
Mark IV Industries, Inc. 2,500 37,656
Milacron, Inc. 200 3,563
Mitcham Industries, Inc. (a) 100 331
MSC Industrial Direct, Inc. 1,000 17,875
(a)
Nordson Corp. 700 41,650
Parker-Hannifin Corp. 2,100 77,963
Plasma-Therm, Inc. (a) 100 353
PRI Automation, Inc. 800 24,000
Robotic Vision Systems, Inc. 100 303
(a)
Stanley Works 1,400 34,038
Stewart & Stevenson Services, 600 5,025
Inc.
Tenneco, Inc. 3,800 113,763
Timken Co. 1,300 22,994
UCAR International, Inc. (a) 1,500 23,813
Ultratech Stepper, Inc. (a) 1,000 15,781
United States Filter Corp. (a) 2,275 55,880
SHARES VALUE (NOTE 1)
UNOVA, Inc. (a) 300 $ 4,350
Valmont Industries, Inc. 700 8,247
Veeco Instruments, Inc. (a) 400 15,300
1,897,537
POLLUTION CONTROL - 0.3%
Allied Waste Industries, Inc. 2,425 47,288
(a)
Browning-Ferris Industries, 3,800 119,700
Inc.
Casella Waste Systems, Inc. 1,100 23,100
Class A (a)
Flanders Corp. (a) 300 1,031
Ogden Corp. 200 4,888
Republic Services, Inc. Class 2,000 34,875
A (a)
Safety-Kleen Corp. (a) 460 6,411
Superior Services, Inc. (a) 1,700 34,159
Waste Management, Inc. 8,652 422,867
WasteMasters, Inc. (a) 700 175
694,494
TOTAL INDUSTRIAL MACHINERY & 9,144,861
EQUIPMENT
MEDIA & LEISURE - 5.7%
BROADCASTING - 2.3%
American Tower Corp. Class A 1,800 48,263
(a)
Cablevision Systems Corp. 1,500 97,500
Class A (a)
Capstar Broadcasting Corp. 1,500 30,281
Class A (a)
CBS Corp. 10,700 394,563
CD Radio, Inc. (a) 500 10,875
Chancellor Media Corp. (a) 1,100 48,125
Chris-Craft Industries, Inc. 1,000 42,375
Clear Channel Communications, 4,500 270,000
Inc. (a)
Comcast Corp. Class A 5,500 390,156
(special)
Cox Communications, Inc. 3,900 275,925
Class A (a)
Cox Radio, Inc. Class A (a) 700 30,888
E.W. Scripps Co. Class A 900 36,900
EchoStar Communications Corp. 400 19,600
Class A ((a)
Emmis Broadcasting Class A (a) 700 32,419
Hearst-Argyle Television, 800 21,100
Inc. (a)
Heftel Broadcasting Corp. 1,000 41,250
Class A (a)
Infinity Broadcasting Corp. 2,800 66,500
Class A (a)
Jacor Communications, Inc. 1,200 83,700
Class A (a)
Jones Intercable, Inc. Class 700 28,350
A (a)
MediaOne Group, Inc. 9,900 539,550
Metro One Telecommunications, 1,000 13,750
Inc. (a)
Metromedia International 300 1,744
Group, Inc. (a)
NTL, Inc. (a) 1,200 93,225
PanAmSat Corp. (a) 100 3,588
Paxson Communications Corp. 400 3,300
(a)
Pegasus Communications Corp. 800 19,500
(a)
Sinclair Broadcast Group, 1,900 28,144
Inc. Class A (a)
TCA Cable TV, Inc. 1,500 66,188
TCI Satellite Entertainment, 4,300 3,494
Inc. Class A (a)
Tel-Com Wireless Cable TV 700 6,147
Corp. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
BROADCASTING - CONTINUED
Tele-Communications, Inc. 8,400 $ 527,625
(TCI Group) Series A (a)
Time Warner, Inc. 19,300 1,244,850
U.S. Satellite Broadcasting 2,200 35,475
Co., Inc. Class A (a)
United International 1,100 50,600
Holdings, Inc. Class A (a)
United Video Satellite Group, 1,500 43,219
Inc. Class A (a)
Univision Communications, 1,500 61,125
Inc. Class A (a)
USA Networks, Inc. (a) 2,412 95,877
ValueVision International, 1,800 15,638
Inc. (a)
Westwood One, Inc. (a) 1,000 24,375
Young Broadcasting, Inc. 500 20,250
Class A (a)
4,866,434
ENTERTAINMENT - 1.3%
Alliance Gaming Corp. (a) 28 159
American Classic Voyages Co. 100 2,325
(a)
AMF Bowling, Inc. (a) 400 1,825
Bally Total Fitness Holding 700 15,750
Corp. (a)
Carmike Cinemas, Inc. Class A 200 3,150
(a)
Carnival Corp. 10,300 458,350
Cedar Fair LP (depository 100 2,494
unit)
Disney (Walt) Co. 32,300 1,136,556
Family Golf Centers, Inc. (a) 1,500 8,953
Florida Panthers Holdings, 100 1,019
Inc. Class A (a)
Fox Entertainment Group, Inc. 2,000 52,000
(a)
Image Entertainment, Inc. (a) 700 5,425
International Speedway Corp. 300 13,650
Class A
K-Tel International, Inc. (a) 500 4,969
King World Productions, Inc. 1,300 34,369
(a)
Kushner Locke Co. (a) 1,500 13,969
MGM Grand, Inc. (a) 1,390 52,473
Park Place Entertainment 7,100 53,250
Corp. (a)
Pixar (a) 400 16,450
Platinum Entertainment, Inc. 400 2,725
(a)
Premier Parks, Inc. (a) 800 23,300
Rentrak Corp. (a) 400 1,200
SFX Entertainment, Inc. Class 700 42,788
A (a)
Speedway Motorsports, Inc. (a) 200 7,138
Spelling Entertainment Group, 500 3,594
Inc. (a)
Tele-Communications, Inc. 6,900 191,044
(TCI Ventures Group) Series
A (a)
Ticketmaster Online 400 14,450
CitySearch, Inc. (a)
Viacom, Inc. Class B 5,700 503,738
(non-vtg.) (a)
Visual Data Corp. (a) 1,000 12,875
Zomax Optical Media, Inc. (a) 1,000 13,031
2,693,019
SHARES VALUE (NOTE 1)
LEISURE DURABLES & TOYS - 0.3%
Arctic Cat, Inc. 200 $ 1,550
Authentic Fitness Corp. 100 1,575
Brunswick Corp. 2,100 44,756
Callaway Golf Co. 1,200 13,050
Champion Enterprises, Inc. (a) 1,200 23,625
Coachmen Industries, Inc. 300 6,075
Coleman, Inc. (a) 300 2,813
Harley-Davidson, Inc. 2,000 115,625
Hasbro, Inc. 2,900 107,300
JAKKS Pacific, Inc. (a) 1,100 18,356
K2, Inc. 100 881
Mattel, Inc. 5,400 142,425
National R.V. Holdings, Inc. 300 6,619
(a)
Polaris Industries, Inc. 1,100 31,075
Silicon Gaming, Inc. (a) 100 75
T-HQ, Inc. (a) 300 5,963
West Marine, Inc. (a) 200 1,888
523,651
LODGING & GAMING - 0.2%
Anchor Gaming (a) 400 16,025
Aztar Corp. (a) 300 1,463
Boyd Gaming Corp. (a) 300 1,238
Circus Circus Enterprises, 3,000 51,375
Inc. (a)
Extended Stay America, Inc. 500 4,375
(a)
Gtech Holdings Corp. (a) 400 9,050
Harrah's Entertainment, Inc. 700 11,681
(a)
Hilton Hotels Corp. 2,600 41,113
International Game Technology 2,500 47,500
Corp.
Lodgian, Inc. (a) 300 1,219
MeriStar Hospitality Corp. 1,000 17,813
Mirage Resorts, Inc. (a) 4,500 87,750
Primadonna Resorts, Inc. (a) 400 4,850
Prime Hospitality Corp. (a) 1,600 16,400
Promus Hotel Corp. (a) 2,100 73,894
Station Casinos, Inc. (a) 300 3,000
Suburban Lodges of America, 200 1,550
Inc. (a)
Sunterra Corp. (a) 500 6,125
Trump Hotels & Casino 700 2,800
Resorts, Inc. (a)
WMS Industries, Inc. 1,300 10,238
409,459
PUBLISHING - 0.8%
American Greetings Corp. 1,000 23,688
Class A
Applied Graphics 860 7,740
Technologies, Inc. (a)
Banta Corp. 1,200 25,575
Belo (A.H.) Corp. Class A 1,500 27,188
Central Newspapers, Inc. 600 21,000
Class A
CMP Media, Inc. Class A (a) 600 18,000
Dow Jones & Co., Inc. 2,100 98,700
Gannet, Inc. 5,100 323,850
Gibson Greetings, Inc. (a) 400 3,313
Harcourt General, Inc. 1,500 68,719
Harte Hanks Communications, 400 10,350
Inc.
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
PUBLISHING - CONTINUED
Hollinger International, Inc. 3,400 $ 42,075
Class A
Houghton Mifflin Co. 900 38,700
Journal Register Co. (a) 300 3,938
Knight-Ridder, Inc. 2,000 100,375
Lee Enterprises, Inc. 200 5,525
McClatchy Co., The Class A 100 3,200
McGraw-Hill Companies, Inc. 1,900 207,931
Meredith Corp. 200 6,750
New York Times Co. (The) 2,900 89,900
Class A
PRIMEDIA, Inc. (a) 200 2,663
Pulitzer Publishing Co. 200 15,975
Reader's Digest Association, 2,100 71,400
Inc. Class A (non-vtg.)
Scholastic Corp. (a) 500 24,625
Times Mirror Co. Class A 1,700 94,881
Tribune Co. 2,400 159,150
Washington Post Co. Class B 200 109,975
Wiley (JOHN) & Sons, Inc. 900 40,106
Class A
World Color Press, Inc. (a) 600 14,888
Ziff-Davis, Inc. (a) 2,300 38,669
1,698,849
RESTAURANTS - 0.8%
Applebee's International, 1,300 33,719
Inc.
Avado Brands, Inc. 800 5,450
Bob Evans Farms, Inc. 1,300 28,031
Boston Chicken, Inc. (a) 400 264
Brinker International, Inc. 400 11,575
(a)
Buffets, Inc. (a) 2,700 27,169
CBRL Group, Inc. 2,000 37,500
CEC Entertainment, Inc. (a) 300 9,000
Cheesecake Factory, Inc. (a) 1,250 25,625
CKE Restaurants, Inc. 1,111 29,511
Darden Restaurants, Inc. 2,000 44,000
Dave & Busters, Inc. (a) 100 1,969
Einstein/Noah Bagel Corp. (a) 100 144
Fine Host Corp. (a) 500 148
Foodmaker, Inc. (a) 1,200 27,600
Koo Koo Roo Enterprises, Inc. 1,100 567
(a)
Landry's Seafood Restaurants, 1,800 12,263
Inc. (a)
Lone Star Steakhouse Saloon 200 1,813
(a)
Marriott International, Inc. 3,400 122,400
Class A
McDonald's Corp. 10,500 892,500
O Charleys, Inc. (a) 150 2,213
Outback Steakhouse, Inc. (a) 1,400 61,425
Papa John's International, 1,100 47,575
Inc. (a)
Planet Hollywood 500 1,219
International, Inc. Class A
(a)
Rainforest Cafe, Inc. (a) 250 1,359
Rock Bottom Restaurants, Inc. 100 875
(a)
Ryan's Family Steak Houses, 1,200 13,650
Inc. (a)
Sonic Corp. (a) 150 3,600
SHARES VALUE (NOTE 1)
Starbucks Corp. (a) 1,500 $ 79,313
Tricon Global Restaurants, 2,900 179,800
Inc. (a)
Wendy's International, Inc. 3,400 81,388
1,783,665
TOTAL MEDIA & LEISURE 11,975,077
NONDURABLES - 6.7%
AGRICULTURE - 0.1%
Delta & Pine Land Co. 200 6,475
Michael Foods, Inc. 500 9,250
Northland Cranberries, Inc. 100 753
Class A
Pioneer Hi-Bred 4,800 112,500
International, Inc.
128,978
BEVERAGES - 2.0%
Anheuser-Busch Companies, 7,300 559,819
Inc.
Beringer Wine Estates 600 24,188
Holdings, Inc. Class B (a)
Brown-Forman Corp. Class B 600 39,563
Canandaigua Brands, Inc. 700 37,363
Class A (a)
Celestial Seasonings, Inc. (a) 200 5,775
Coca-Cola Co. (The) 40,000 2,557,500
Coca-Cola Enterprises, Inc. 5,700 176,700
Coors (Adolph) Co. Class B 600 35,738
M & F Worldwide Corp. (a) 100 913
Mondavi (Robert) Corp. Class 500 17,188
A (a)
PepsiCo, Inc. 22,800 857,850
Whitman Corp. 2,300 43,700
4,356,297
FOODS - 1.8%
Agribrands International, 240 7,440
Inc.
American Italian Pasta Co. 200 5,100
Class A (a)
Archer-Daniels-Midland Co. 11,530 174,391
Bestfoods 5,300 248,769
Campbell Soup Co. 8,100 325,519
Chiquita Brands 800 6,900
International, Inc.
ConAgra, Inc. 6,900 207,863
Corn Products International, 1,200 28,200
Inc.
Dean Foods Co. 700 25,506
Dole Food, Inc. 1,700 53,550
Earthgrains Co. 1,600 39,300
Flowers Industries, Inc. 1,400 34,125
Gardenburger, Inc. (a) 400 4,400
General Mills, Inc. 2,900 233,994
Heinz (H.J.) Co. 6,600 359,288
Hershey Foods Corp. 2,800 174,300
Hormel Foods Corp. 400 14,400
IBP, Inc. 1,800 40,500
International Home Foods, 1,300 20,313
Inc. (a)
International Multifoods 100 2,163
Corp.
Interstate Bakeries Corp. 1,600 38,400
Kellogg Co. 7,300 270,100
Lancaster Colony Corp. 1,350 37,125
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - CONTINUED
FOODS - CONTINUED
Lance, Inc. 600 $ 9,900
McCormick & Co., Inc. 2,300 65,838
(non-vtg.)
Nabisco Holdings Corp. Class A 1,500 66,563
Quaker Oats Co. 2,800 152,950
Ralcorp Holdings, Inc. (a) 680 12,113
Ralston Purina Co. 6,200 167,013
Sara Lee Corp. 13,800 375,188
Smithfield Foods, Inc. (a) 1,400 36,794
Suiza Foods Corp. (a) 700 25,900
Sysco Corp. 6,600 186,450
Tyson Foods, Inc. 3,100 63,550
Universal Foods Corp. 200 4,538
Vlasic Foods International, 650 7,922
Inc. (a)
Wrigley (Wm.) Jr. Co. 2,200 204,600
3,730,965
HOUSEHOLD PRODUCTS - 1.9%
Alberto-Culver Co. Class B 300 7,200
American Safety Razor Co. (a) 500 6,844
Aptargroup, Inc. 1,000 27,375
Avon Products, Inc. 4,800 199,800
Brady (W.H.) Co. Class A 700 16,713
Clorox Co. 2,179 257,803
Colgate-Palmolive Co. 4,300 364,963
Dial Corp. 2,600 75,888
Enamelon, Inc. (a) 200 1,125
Estee Lauder Companies, Inc. 1,300 112,856
French Fragrances, Inc. (a) 200 1,313
Gillette Co. 17,400 933,075
International Flavors & 2,100 86,494
Fragrances, Inc.
Premark International, Inc. 300 9,581
Procter & Gamble Co. 21,000 1,879,500
Revlon, Inc. Class A (a) 900 12,713
Rubbermaid, Inc. 3,300 109,106
Safeskin Corp. (a) 1,500 34,875
Ultralife Batteries, Inc. (a) 600 3,113
USA Detergents, Inc. (a) 300 1,950
Windmere-Durable Holdings, 500 2,500
Inc. (a)
York Group, Inc. 400 3,600
4,148,387
TOBACCO - 0.9%
Dimon, Inc. 500 2,188
General Cigar Holdings, Inc. 300 2,194
Class A (a)
Philip Morris Companies, Inc. 38,500 1,506,313
RJR Nabisco Holdings Corp. 5,800 158,413
Schweitzer-Mauduit 200 2,350
International, Inc.
Universal Corp. 1,200 32,625
UST, Inc. 4,400 130,075
1,834,158
TOTAL NONDURABLES 14,198,785
SHARES VALUE (NOTE 1)
PRECIOUS METALS - 0.1%
Battle Mountain Gold Co. 4,100 $ 13,838
Coeur d'Alene Mines Corp. (a) 900 4,781
Echo Bay Mines Ltd. (a) 1,700 3,078
Getchell Gold Corp. (a) 1,000 25,938
Homestake Mining Co. 6,900 63,394
Newmont Mining Corp. 4,045 69,776
Royal Oak Mines, Inc. (a) 900 137
Stillwater Mining Co. (a) 600 13,763
TOTAL PRECIOUS METALS 194,705
RETAIL & WHOLESALE - 6.1%
APPAREL STORES - 0.7%
Abercrombie & Fitch Co. Class 1,137 86,412
A (a)
AnnTaylor Stores Corp. (a) 400 15,125
Cato Corp. Class A 400 3,800
Charming Shoppes, Inc. (a) 4,600 15,525
Chicos Fas, Inc. (a) 300 7,388
Claire's Stores, Inc. 1,800 39,713
Dress Barn, Inc. (a) 1,000 13,000
Footstar, Inc. (a) 900 22,950
Gap, Inc. 9,050 585,422
Goody's Family Clothing (a) 1,100 11,103
Gymboree Corp. (a) 500 5,250
International Isotopes, Inc. 100 1,150
(a)
Intimate Brands, Inc. Class A 4,700 184,769
Just for Feet, Inc. (a) 1,600 16,350
Limited, Inc. (The) 4,025 142,888
Men's Wearhouse, Inc. (The) 700 20,563
(a)
Paul Harris Stores, Inc. (a) 100 650
Payless ShoeSource, Inc. (a) 1,000 54,875
Ross Stores, Inc. 1,300 59,475
Stage Stores, Inc. (a) 700 5,075
Talbots, Inc. 100 2,419
TJX Companies, Inc. 4,400 125,675
Venator Group, Inc. (a) 700 3,456
Wet Seal, Inc. Class A (a) 600 23,288
1,446,321
APPLIANCE STORES - 0.0%
Cellstar Corp. (a) 1,500 17,063
Hirsch International Corp. 400 1,150
Class A (a)
18,213
DRUG STORES - 0.5%
CVS Corp. 5,686 301,358
Duane Reade, Inc. (a) 700 21,175
General Nutrition Companies, 1,500 20,063
Inc. (a)
Genovese Drug Stores, Inc. 700 16,888
Class A
Longs Drug Stores Corp. 600 21,713
Perfumania, Inc. (a) 1,300 6,500
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
DRUG STORES - CONTINUED
Rite Aid Corp. 3,800 $ 157,225
Walgreen Co. 15,100 483,200
1,028,122
GENERAL MERCHANDISE STORES -
2.6%
99 Cents Only Stores (a) 656 31,037
Ames Department Stores, Inc. 700 21,000
(a)
BJ's Wholesale Club, Inc. (a) 1,300 56,631
Consolidated Stores Corp. (a) 1,294 32,593
Cost Plus, Inc. (a) 100 3,544
Costco Companies, Inc. (a) 3,100 248,969
Dayton Hudson Corp. 6,600 412,913
Dillards, Inc. Class A 2,800 69,650
Dollar General Corp. 2,125 63,617
Dollar Tree Stores, Inc. (a) 950 38,000
Elder Beerman Stores Corp. (a) 500 3,953
Family Dollar Stores, Inc. 1,300 26,000
Federated Department Stores, 4,200 159,863
Inc. (a)
Hot Topic, Inc. (a) 200 2,825
K mart Corp. (a) 8,900 155,750
Kohls Corp. (a) 2,100 144,900
May Department Stores Co. 4,500 266,625
(The)
Michaels Stores, Inc. (a) 500 8,563
Neiman-Marcus Group, Inc. (a) 100 2,588
Nordstrom, Inc. 2,400 96,600
Party City Corp. (a) 450 4,922
Penney (J.C.) Co., Inc. 3,300 119,213
Saks, Inc. (a) 2,931 105,333
Sears, Roebuck & Co. 5,300 215,313
Shopko Stores, Inc. (a) 100 3,150
Stein Mart, Inc. (a) 400 3,650
Wal-Mart Stores, Inc. 36,200 3,126,775
5,423,977
GROCERY STORES - 0.8%
Albertson's, Inc. 4,700 267,900
American Stores Co. 4,100 138,375
Central Garden & Pet Co. (a) 1,400 23,800
Fleming Companies, Inc. 2,100 15,488
Food Lion, Inc. Class A 8,400 80,062
Great Atlantic & Pacific Tea, 1,200 37,875
Inc.
Hain Food Group, Inc. (a) 100 1,913
Hannaford Brothers Co. 1,100 51,700
Kroger Co. (a) 3,700 239,344
Meyer (Fred), Inc. (a) 2,590 166,408
Performance Food Group Co. (a) 100 2,600
Safeway, Inc. (a) 7,300 421,575
Supervalu, Inc. 2,700 64,969
U.S. Foodservice (a) 1,277 59,301
United Natural Foods, Inc. (a) 300 7,538
Whole Foods Market, Inc. (a) 1,100 33,963
SHARES VALUE (NOTE 1)
Wild Oats Markets, Inc. (a) 550 $ 14,713
Winn-Dixie Stores, Inc. 2,400 105,150
1,732,674
RETAIL & WHOLESALE,
MISCELLANEOUS - 1.5%
Action Performance Companies, 700 25,113
Inc. (a)
AgriBioTech, Inc. (a) 1,000 4,375
Audio Book Club, Inc. (a) 800 7,550
Barnes & Noble, Inc. (a) 600 17,738
Bed Bath & Beyond, Inc. (a) 1,800 52,988
Best Buy Co., Inc. (a) 1,500 139,125
Beyond.com Corp. (a) 1,300 33,800
Big Entertainment, Inc. (a) 1,200 13,875
Boise Cascade Office Products 300 3,600
Corp.
Books-A-Million, Inc. (a) 900 10,069
Borders Group, Inc. (a) 1,000 13,813
Brylane, Inc. (a) 100 2,163
Cannondale Corp. (a) 100 1,263
CDnow, Inc. 800 12,900
Circuit City Stores, Inc. - 1,200 65,100
Circuit City Group
Cole National Corp. Class A 100 1,600
(a)
Corporate Express, Inc. (a) 3,834 20,608
Creative Computers, Inc. (a) 500 16,313
Cyberian Outpost, Inc. (a) 1,500 25,594
CyberShop International, Inc. 1,600 11,900
(a)
Daisytek International Corp. 900 17,156
(a)
dELiA*s, Inc. (a) 900 15,019
DM Management Co. (a) 300 3,900
E4L, Inc. (a) 100 565
Eagle Hardware & Garden, Inc. 1,100 41,319
(a)
Elcom International, Inc. (a) 100 375
Fingerhut Companies, Inc. 1,400 34,388
Finish Line, Inc. Class A (a) 700 8,444
Friedmans, Inc. Class A (a) 200 2,100
Gadzooks, Inc. (a) 500 4,000
Genesis Direct, Inc. (a) 3,000 11,813
Good Guys, Inc. (a) 400 1,438
Guitar Center, Inc. (a) 800 13,350
Handleman Co. (a) 700 9,056
Home Depot, Inc. 23,600 1,408,625
IKON Office Solutions, Inc. 1,000 14,125
ImaginOn, Inc. (a) 1,500 8,906
Lets Talk Cellular & 200 838
Wireless, Inc. (a)
Lowe's Companies, Inc. 5,200 308,425
Micro Warehouse, Inc. (a) 500 9,875
Multiple Zones International, 1,200 12,450
Inc. (a)
N2K, Inc. (a) 800 10,250
Navarre Corp. (a) 900 14,400
Office Depot, Inc. (a) 3,300 117,769
Officemax, Inc. (a) 3,000 23,250
ONSALE, Inc. (a) 400 14,600
PC Connection, Inc. 1,500 23,625
PEAPOD, Inc. (a) 500 4,125
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE,
MISCELLANEOUS - CONTINUED
Petco Animal Supplies, Inc. 300 $ 2,419
(a)
PETsMART, Inc. (a) 800 6,300
Pier 1 Imports, Inc. 3,150 27,169
School Specialty, Inc. 1,200 26,475
Sharper Image Corp. (a) 1,100 16,088
Shop At Home, Inc. (a) 2,200 31,075
SkyMall, Inc. (a) 700 10,106
Spiegel, Inc. Class A (a) 800 5,700
Sports Authority, Inc. (a) 800 5,150
Staples, Inc. (a) 6,875 202,168
Summit Technology, Inc. (a) 100 613
Sunglass Hut International, 600 5,813
Inc. (a)
Tandy Corp. 2,100 116,813
Tiffany & Co., Inc. 1,000 57,188
Toys R Us, Inc. (a) 5,700 80,513
U.S. Office Products Co. 363 1,792
U.S.A. Floral Products, Inc. 1,000 14,000
(a)
Williams-Sonoma, Inc. (a) 900 30,769
Wilmar Industries, Inc. (a) 100 1,750
Zale Corp. (a) 1,400 46,375
3,301,949
TOTAL RETAIL & WHOLESALE 12,951,256
SERVICES - 1.4%
ADVERTISING - 0.2%
ADVO, Inc. (a) 100 2,000
DoubleClick, Inc. (a) 500 44,938
Getty Images, Inc. (a) 400 7,650
HA-LO Industries, Inc. (a) 750 8,016
Interpublic Group of 2,200 164,588
Companies, Inc.
Lamar Advertising Co. Class A 1,150 44,419
(a)
Network Event Theater, Inc. 1,300 22,181
(a)
Omnicom Group, Inc. 2,100 139,125
Outdoor Systems, Inc. (a) 2,275 63,558
TMP Worldwide, Inc. (a) 700 39,375
Young & Rubicam, Inc. 700 26,425
562,275
EDUCATIONAL SERVICES - 0.1%
Apollo Group, Inc. Class A (a) 1,350 40,584
Devry, Inc. (a) 300 7,538
Education Management Corp. (a) 1,400 37,625
ITT Educational Services, 1,000 36,438
Inc. (a)
122,185
LEASING & RENTAL - 0.1%
Avis Rent A Car, Inc. (a) 700 16,056
Budget Group, Inc. Class A (a) 1,400 16,363
Caribiner International, Inc. 200 1,563
(a)
Central Parking Corp. 1,000 34,125
SHARES VALUE (NOTE 1)
Dollar Thrifty Automotive 500 $ 5,938
Group, Inc. (a)
GATX Corp. 200 6,913
Hertz Corp. Class A 1,000 39,813
Hollywood Entertainment Corp. 900 24,694
(a)
Rent-A-Center, Inc. (a) 800 20,300
Rent-Way, Inc. (a) 770 17,421
Ryder Systems, Inc. 500 13,500
United Rentals, Inc. (a) 600 19,313
215,999
PRINTING - 0.1%
Consolidated Graphics, Inc. 300 18,225
(a)
Cyrk, Inc. (a) 100 644
Deluxe Corp. 1,800 60,975
Donnelley (R.R.) & Sons Co. 2,500 85,625
Harland (John H.) Co. 500 6,719
Paxar Corp. (a) 200 1,700
Reynolds & Reynolds Co. Class 400 7,550
A
United Stationers, Inc. (a) 1,600 29,300
Valassis Communications, Inc. 900 43,200
(a)
Wallace Computer Services, 400 9,050
Inc.
262,988
SERVICES - 0.9%
Abacus Direct Corp. (a) 500 33,875
ABR Information Services, 800 14,100
Inc. (a)
ACNielsen Corp. (a) 1,900 49,400
Advanced Health Corp. (a) 400 1,225
American Oncology Resources, 200 2,000
Inc. (a)
AmeriPath, Inc. (a) 1,600 14,900
Amkor Technology, Inc. 3,900 40,950
Analytical Surveys, Inc. (a) 200 5,200
Assisted Living Concepts, 400 1,900
Inc. (a)
Automobile Protection Corp. 400 4,300
(a)
Billing Information Concepts 300 3,009
Corp. (a)
Block (H&R), Inc. 1,500 68,063
Boron LePore & Associates, 600 7,575
Inc. (a)
Building One Services Corp. 2,000 33,000
(a)
Cadiz, Inc. (a) 200 1,725
Catalina Marketing Corp. (a) 700 45,063
CDI Corp. (a) 100 2,263
Cendant Corp. (a) 12,580 208,356
Century Business Services, 1,500 17,531
Inc. (a)
CheckFree Holdings Corp. (a) 600 20,550
Cintas Corp. 1,400 99,050
Coach USA, Inc. (a) 800 18,800
Coinmach Laundry Corp. (a) 300 3,094
Computer Horizons Corp. (a) 1,400 20,913
Crestline Capital Corp. 130 1,658
Data Processing Resources 1,000 19,000
Corp. (a)
Day Runner, Inc. (a) 300 4,088
Dun & Bradstreet Corp. 2,400 82,200
Ecolab, Inc. 1,600 63,800
Fonar Corp. 200 263
FYI, Inc. (a) 400 12,050
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SERVICES - CONTINUED
SERVICES - CONTINUED
G & K Services, Inc. Class A 500 $ 24,938
Gartner Group, Inc. Class A 800 17,950
(a)
Greg Manning Auctions, Inc. 700 6,038
(a)
HCIA, Inc. (a) 100 388
Headway Corporate Resources 300 1,538
(a)
Interim Services, Inc. (a) 2,000 38,000
International Telecom Data 1,000 13,750
Systems, Inc.
Iron Mountain, Inc. (a) 950 29,094
Jostens, Inc. 100 2,344
Kelly Services, Inc. Class A 200 5,100
Labor Ready, Inc. (a) 600 16,912
Lason, Inc. (a) 600 32,513
Learning Tree International, 100 838
Inc. (a)
Manpower, Inc. 400 9,575
Medaphis Corp. (a) 400 1,300
Media Arts Group, Inc. (a) 100 1,363
Medpartners, Inc. (a) 700 4,156
MemberWorks, Inc. (a) 100 3,475
Metamor Worldwide, Inc. (a) 1,500 28,313
Metzler Group, Inc. (a) 850 36,125
Modis Professional Services, 1,100 15,056
Inc. (a)
Morrison Knudsen Corp. (a) 100 969
National Processing, Inc. (a) 100 606
National Service Industries, 800 25,700
Inc.
NCO Group, Inc. (a) 600 18,750
NewsEdge Corp. (a) 300 3,056
Norrell Corp. 200 3,175
NOVA Corp. 1,557 38,925
Olsten Corp. 400 2,475
Paymentech, Inc. (a) 100 1,913
Pre-Paid Legal Services, Inc. 600 17,250
(a)
Precision Response Corp. (a) 100 650
Premiere Technologies, Inc. 1,716 15,659
(a)
Profit Recovery Group 600 19,800
International, Inc. (a)
Protection One, Inc. (a) 100 813
RCM Technologies, Inc. (a) 200 3,700
Regis Corp. 600 22,425
RemedyTemp, Inc. Class A (a) 200 3,175
Renaissance Worldwide, Inc. 2,300 14,375
(a)
Robert Half International, 2,200 79,200
Inc. (a)
Romac International, Inc. (a) 1,127 13,524
Rural/Metro Corp. (a) 200 1,788
Service Corp. International 6,452 99,200
ServiceMaster Co. 5,850 109,322
Snyder Communications, Inc. 1,700 58,225
(a)
SOS Staffing Services, Inc. 300 2,663
(a)
Sotheby's Holdings, Inc. 400 11,200
Class A
Staffmark, Inc. (a) 900 12,038
Teletech Holdings, Inc. (a) 300 2,100
True North Communications 1,800 41,963
SHARES VALUE (NOTE 1)
Tuboscope, Inc. (a) 200 $ 1,075
Veterinary Centers of 500 7,500
America, Inc. (a)
Wackenhut Corrections Corp. 100 2,138
(a)
Youth Services International, 100 375
Inc. (a)
Zebra Technologies Corp. (a) 180 4,646
Zebra Technologies Corp. 1,200 30,975
Class A (a)
1,860,015
TOTAL SERVICES 3,023,462
TECHNOLOGY - 19.2%
COMMUNICATIONS EQUIPMENT - 2.8%
3Com Corp. (a) 5,200 163,475
ACT Networks, Inc. (a) 300 3,488
ADC Telecommunications, Inc. 1,700 68,850
(a)
Advanced Fibre 800 6,500
Communications, Inc. (a)
Andrew Corp. (a) 2,600 39,325
Applied Signal Technology, 100 725
Inc. (a)
Ascend Communications, Inc. 3,275 251,970
(a)
Aspect Telecommunications 1,400 10,763
Corp. (a)
Brooktrout Technology, Inc. 300 3,431
(a)
C-Phone Corp. (a) 500 1,344
Cabletron Systems, Inc. (a) 1,000 8,125
Carrier Access Corp. (a) 900 35,550
Centigram Communications 100 1,094
Corp. (a)
Checkpoint Systems, Inc. (a) 300 2,625
Ciena Corp. (a) 1,200 33,450
Cisco Systems, Inc. (a) 25,357 2,480,232
Com21, Inc. (a) 1,000 23,563
Comdial Corp. (a) 100 688
CustomTracks Corp. (a) 1,300 10,400
Davox Corp. (a) 300 2,588
Dialogic Corp. (a) 800 22,150
DSP Communications, Inc. (a) 1,000 15,000
Dycom Industries, Inc. (a) 600 23,813
Executone Information 4,800 12,300
Systems, Inc. (a)
General DataComm Industries 100 244
(a)
Intermedia Communications, 1,300 23,563
Inc. (a)
InterVoice, Inc. (a) 800 8,700
Level One Communications, 1,050 35,175
Inc. (a)
Lo Jack Corp. (a) 100 900
Lucent Technologies, Inc. 21,000 2,132,813
Metricom, Inc. (a) 100 619
Mosaix, Inc. (a) 100 763
Natural MicroSystems Corp. (a) 100 606
Network Equipment 300 2,681
Technologies, Inc. (a)
Osicom Technologies, Inc. (a) 100 1,613
P-Com, Inc. (a) 1,900 12,053
Pairgain Technologies, Inc. 400 3,450
(a)
Periphonics Corp. (a) 100 1,050
PictureTel Corp. (a) 300 2,452
Plantronics, Inc. (a) 600 36,300
Reltec Corp. (a) 400 8,700
Shiva Corp. (a) 200 1,194
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMMUNICATIONS EQUIPMENT -
CONTINUED
Symmetricom, Inc. (a) 100 $ 675
Tekelec (a) 2,200 26,675
Tellabs, Inc. (a) 2,844 227,698
Terayon Communication 800 24,850
Systems, Inc. (a)
Ultrak, Inc. (a) 100 769
VTEL Corp. (a) 100 231
Westell Technologies, Inc. 1,700 8,713
Class A (a)
Xircom, Inc. (a) 600 20,400
Xylan Corp. (a) 1,400 37,100
5,841,436
COMPUTER SERVICES & SOFTWARE
- - 7.8%
24/7 Media, Inc. (a) 1,100 27,363
4Front Software 100 1,119
International, Inc. (a)
7Th Level, Inc. (a) 500 1,375
AboveNet Communications, Inc. 900 28,125
(a)
Acceler8 Technology Corp. (a) 200 813
Activision, Inc. (a) 1,600 17,400
Acxiom Corp. (a) 1,600 38,300
Adept Technology, Inc. (a) 100 663
Adobe Systems, Inc. 600 24,150
Advantage Learning Systems, 400 30,100
Inc. (a)
Advent Software, Inc. (a) 400 18,450
Affiliated Computer Services, 1,300 60,125
Inc. Class A (a)
Affymetrix, Inc. (a) 800 31,000
Alternative Resources Corp. 100 1,075
(a)
Amazon.com, Inc. (a) 2,400 307,500
America Online, Inc. 14,600 1,298,488
American Management Systems, 1,000 33,375
Inc. (a)
American Software, Inc. Class 100 263
A (a)
Ansoft Corp. (a) 100 656
Ardent Software, Inc. (a) 800 15,200
ARIS Corp. (a) 1,000 13,375
Aspect Development, Inc. (a) 1,200 36,600
Aspen Technology, Inc. (a) 900 11,531
At Home Corp. Series A (a) 1,800 191,025
Autodesk, Inc. 600 24,075
Automatic Data Processing, 9,600 381,600
Inc.
Avant! Corp. (a) 1,200 20,700
AVT Corp. (a) 300 7,763
Aware, Inc. (a) 700 24,238
Axent Technolgies, Inc. (a) 880 30,195
Banyan Systems, Inc. (a) 1,400 14,088
BEA Systems, Inc. (a) 1,100 18,838
Bisys Group, Inc. (The) (a) 900 48,038
Black Box Corp. (a) 500 16,125
BMC Software, Inc. 3,000 122,625
Boole & Babbage, Inc. 1,200 32,250
Brio Technology, Inc. (a) 900 16,650
broadcast.com, Inc. (a) 800 67,050
BroadVision, Inc. (a) 700 31,413
SHARES VALUE (NOTE 1)
CACI International, Inc. 100 $ 1,650
Class A (a)
Cadence Design Systems, Inc. 2,800 67,375
(a)
Cambridge Technology 600 15,075
Partners, Inc. (a)
Ceridian Corp. (a) 1,200 85,950
Ciber, Inc. (a) 1,000 25,125
Citrix Systems, Inc. (a) 500 38,563
Clarify, Inc. (a) 700 18,988
CMGI, Inc. (a) 700 85,838
CNET, Inc. (a) 400 45,850
Command Systems, Inc. (a) 800 2,050
Complete Business Solutions, 355 10,029
Inc. (a)
CompuCom Systems, Inc. (a) 200 869
CompUSA, Inc. (a) 500 5,250
Computer Associates 8,200 344,400
International, Inc.
Computer Concepts Corp. (a) 600 975
Computer Learning Centers, 400 1,725
Inc. (a)
Computer Management Sciences, 800 22,200
Inc. (a)
Computer Sciences Corp. 2,100 139,913
Compuware Corp. (a) 2,600 145,438
Concentric Network Corp. (a) 400 17,550
Concord Communications, Inc. 400 22,650
(a)
Connect, Inc. (a) 2,700 10,294
Convergys Corp. (a) 2,300 39,819
Corsair Communictions, Inc. 200 925
(a)
CSG Systems International, 500 35,625
Inc. (a)
Cybercash, Inc. (a) 800 10,425
CyberOptics Corp. (a) 100 1,369
Cylink Corp. (a) 100 406
DAOU Systems, Inc. (a) 200 1,063
Data Broadcasting Corp. (a) 1,800 27,450
Data Dimensions, Inc. (a) 200 988
Data Transmission Network 400 9,150
Corp. (a)
Datastream Systems, Inc. (a) 400 3,725
Datatec Systems, Inc. (a) 100 331
Dendrite International, Inc. 800 22,500
(a)
Diamond Multimedia Systems, 300 2,100
Inc. (a)
DIDAX, Inc. (a) 800 6,900
Digi International, Inc. (a) 100 650
DocuCorp International, Inc. 20 106
(a)
Documentum, Inc. (a) 1,000 21,375
DSET Corp. (a) 400 4,800
DST Systems, Inc. (a) 1,510 81,918
Earthlink Network, Inc. (a) 300 18,056
EarthWeb, Inc. (a) 700 26,513
eBay, Inc. (a) 600 200,400
Eclipsys Corp. (a) 1,105 34,048
Edify Corp. (a) 100 594
Egghead.com, Inc. (a) 900 14,625
Electric Lightwave, Inc. 200 1,575
Class A (a)
Electronic Arts, Inc. (a) 500 19,938
Electronic Data Systems Corp. 7,300 339,450
Electronics for Imaging, Inc. 400 13,975
(a)
Engineering Animation, Inc. 600 27,150
(a)
Equifax, Inc. 3,200 120,800
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
Meta Group, Inc. (a) 650 $ 14,544
Excite, Inc. (a) 700 71,750
Exodus Communications, Inc. 500 36,688
(a)
First Data Corp. 6,300 240,975
Fiserv, Inc. (a) 1,900 89,300
Forte Software, Inc. (a) 100 525
Galileo International, Inc. 1,100 55,550
General Magic, Inc. (a) 200 981
Genesys Telecommunications 1,100 18,563
Laboratories, Inc. (a)
GeoCities (a) 700 68,425
GeoTel Communications Corp. 500 21,531
(a)
Go2Net, Inc. (a) 600 35,100
Great Plains Software, Inc. 500 21,000
(a)
GT Interactive Software Corp. 300 1,481
(a)
Harbinger Corp. (a) 950 6,175
Health Management Systems, 400 2,125
Inc. (a)
Healthdyne Information 1,800 12,825
Enterprise, Inc. (a)
Henry (Jack) & Associates, 900 32,400
Inc.
HNC Software, Inc. (a) 1,100 29,563
Hyperion Solutions Corp. (a) 1,395 19,792
i2 Technologies, Inc. (a) 700 17,456
IDT Corp. (a) 1,200 14,925
IDX Systems Corp. (a) 1,100 26,125
IMR Global Corp. (a) 850 15,406
IMS Health, Inc. 4,800 170,400
Inacom Corp. (a) 600 9,300
Infonautics, Inc. (a) 2,000 8,313
Information Advantage 700 8,400
Software, Inc. (a)
Informix Corp. (a) 1,360 11,900
Infoseek Corp. (a) 300 21,469
Inktomi Corp. (a) 600 37,275
Inso Corp. (a) 700 4,878
Intelligroup, Inc. (a) 1,200 19,275
International Network 700 35,788
Services (a)
InterVU, Inc. (a) 300 6,150
Intuit, Inc. (a) 800 79,150
ISS Group, Inc. (a) 700 42,766
J.D. Edwards & Co. (a) 2,400 37,950
JDA Software Group, Inc. (a) 1,300 8,125
Keane, Inc. (a) 600 18,563
Learning Co., Inc. (The) (a) 980 28,481
Legato Systems, Inc. (a) 600 29,550
LHS Group, Inc. (a) 500 21,500
Lycos, Inc. (a) 600 52,575
Macromedia, Inc. (a) 300 9,169
Manugistics Group, Inc. (a) 500 3,938
Mapics, Inc. (a) 700 7,569
Medical Manager Corp. (a) 500 14,000
Mentor Graphics Corp. (a) 2,300 32,200
SHARES VALUE (NOTE 1)
Mercury Interactive Corp. (a) 500 $ 32,406
MetaCreations Corp. (a) 100 644
MicroAge, Inc. (a) 200 1,694
Micromuse, Inc. (a) 900 29,025
Microsoft Corp. (a) 40,300 6,050,038
MicroStrategy, Inc. Class A 700 17,413
(a)
Midway Games, Inc. (a) 239 2,046
Momentum Business 52 449
Applications Inc (a)
National Computer Systems, 700 22,422
Inc.
National Data Corp. 1,000 48,313
National Instrument Corp. (a) 800 23,300
NCR Corp. (a) 2,200 90,063
NetGravity, Inc. (a) 1,300 27,463
Netscape Communications Corp. 1,400 108,413
(a)
NetSpeak Corp. (a) 300 4,613
Network Solutions, Inc. Class 200 36,300
A (a)
Networks Associates, Inc. (a) 1,661 78,067
New Era of Networks, Inc. (a) 600 37,425
Novell, Inc. (a) 4,400 85,250
Oak Technology, Inc. (a) 300 984
Object Design, Inc. (a) 100 644
OnHealth Network Co. (a) 1,100 12,100
Open Market, Inc. (a) 1,100 14,300
Oracle Corp. (a) 15,300 854,888
Orcad, Inc. (a) 100 700
Parametric Technology Corp. 3,100 47,663
(a)
Paychex, Inc. 2,500 105,938
Peerless Systems Corp. (a) 200 1,875
Pegasystems, Inc. (a) 100 475
PeopleSoft, Inc. 2,700 50,963
Peregrine Systems, Inc. (a) 1,000 25,625
Peritus Software Services, 900 506
Inc. (a)
Personnel Group of America, 500 6,594
Inc. (a)
Platinum Software Corp. (a) 438 3,176
Platinum Technology, Inc. (a) 873 11,567
Policy Management Systems 800 29,250
Corp. (a)
Polycom, Inc. (a) 800 16,200
Preview Travel, Inc. (a) 900 18,338
Progress Software Corp. (a) 300 9,225
PSINet, Inc. (a) 600 21,488
QRS Corp. (a) 200 9,963
Quadramed Corp. (a) 900 13,950
Quickturn Design Systems, 1,300 18,200
Inc. (a)
Rainbow Technologies, Inc. (a) 150 2,381
Rational Software Corp. (a) 900 26,719
RealNetworks, Inc. (a) 700 49,088
Remedy Corp. (a) 1,000 20,563
Sabre Group Holdings, Inc. 900 35,325
Class A (a)
Sapient Corp. 700 46,813
Secure Computing Corp. (a) 900 16,988
Security Dynamics 1,100 20,350
Technologies, Inc. (a)
SEI Investments Co. 400 39,600
Shared Medical Systems Corp. 600 30,600
Siebel Systems, Inc. (a) 1,045 45,980
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
Sportsline USA, Inc. (a) 900 $ 40,500
SPR, Inc. (a) 300 4,500
SPSS, Inc. (a) 100 1,963
Spyglass, Inc. (a) 700 8,619
Stac Electronics 100 97
STB Systems, Inc. (a) 450 2,925
Sterling Software, Inc. (a) 1,300 33,150
Structural Dynamics Research 200 3,900
Corp. (a)
Summit Design, Inc. (a) 100 350
SunGard Data Systems, Inc. (a) 1,168 46,282
Sybase, Inc. (a) 500 4,063
Sykes Enterprises, Inc. (a) 1,300 37,050
Symantec Corp. (a) 100 1,806
Synopsys, Inc. (a) 665 30,756
Syntel, Inc. (a) 400 3,850
Systems & Computer 900 7,313
Technology Corp. (a)
Take-Two Interactive 1,700 18,488
Software, Inc. (a)
TAVA Technologies, Inc. (a) 300 1,856
TCSI Corp. (a) 100 202
Technology Solutions, Inc. (a) 1,850 15,147
Telescan, Inc. (a) 1,100 14,231
theglobe.com, Inc. (a) 600 27,825
THINK New Ideas, Inc. (a) 200 1,650
ThrustMaster, Inc. (a) 1,000 13,000
Timberline Software Corp. 266 3,957
Total System Services, Inc. 2,100 47,775
Transaction Systems 1,000 39,313
Architects, Inc. Class A (a)
TSI International Software 400 20,075
Ltd. (a)
TSR, Inc. (a) 100 813
Unicomp, Inc. (a) 100 331
Unify Corp. (a) 1,200 15,225
USWEB Corp. (a) 1,350 45,478
Vantive Corp. (a) 600 6,900
Verio, Inc. (a) 1,100 31,213
VeriSign, Inc. (a) 500 49,000
Veritas Software Corp. (a) 600 42,600
Verity, Inc. (a) 500 19,313
Vertel Corp. (a) 100 178
Viasoft, Inc. (a) 100 481
Visio Corp. (a) 1,200 34,500
Visual Networks, Inc. (a) 1,000 39,250
Walker Interactive Systems, 400 2,125
Inc. (a)
Wang Laboratories, Inc. (a) 1,700 40,588
Wave Systems Corp. Class A (a) 1,100 11,138
WavePhore, Inc. (a) 1,300 9,100
Whittman-Hart, Inc. (a) 1,400 43,838
Wind River Systems, Inc. (a) 1,650 37,641
Xoom.com, Inc. (a) 600 30,975
Xybernaut Corp. (a) 500 2,047
SHARES VALUE (NOTE 1)
Yahoo!, Inc. (a) 3,100 $ 475,850
Zitel Corp. (a) 200 569
16,486,273
COMPUTERS & OFFICE EQUIPMENT
- - 4.8%
Adaptec, Inc. (a) 1,300 25,919
Advanced Digital Information 100 1,700
Corp. (a)
Alpha Microsystems (a) 800 4,450
Apex PC Solutions, Inc. (a) 600 14,700
Apple Computer, Inc. (a) 2,700 93,994
Applied Magnetics Corp. (a) 200 800
Aura Systems, Inc. (a) 700 350
Auspex Systems, Inc. (a) 100 1,006
Bell & Howell Co. (a) 900 29,813
CDW Computer Centers, Inc. (a) 300 20,888
CHS Electronics, Inc. (a) 2,100 14,700
Comdisco, Inc. 800 9,600
Compaq Computer Corp. 27,261 960,950
Computer Network Technology 1,600 19,000
Corp. (a)
Comverse Technology, Inc. (a) 765 54,889
Concurrent Computer Corp. (a) 1,100 4,847
Cybex Corp. 600 15,525
Data General Corp. (a) 400 5,525
Dell Computer Corp. (a) 20,400 1,634,550
Diebold, Inc. 1,400 40,863
Digital Lightwave, Inc. (a) 200 763
Digital River, Inc. (a) 1,000 38,500
Echelon Corp. (a) 2,400 16,350
EMC Corp. (a) 7,900 808,763
Encad, Inc. (a) 300 1,388
Exabyte Corp. (a) 100 500
FileNET Corp. (a) 200 1,606
FOCUS Enhancements, Inc. (a) 100 159
Fore Systems, Inc. (a) 1,800 26,100
FVC.com, Inc. (a) 1,000 12,625
Gateway 2000, Inc. (a) 2,200 159,913
Genicom Corp. (a) 100 216
Globix Corp. (a) 400 10,175
Hewlett-Packard Co. 16,352 1,086,386
HMT Technology Corp. (a) 1,200 8,288
Hutchinson Technology, Inc. 600 18,675
(a)
Imaging Technologies Corp. (a) 3,700 7,169
Ingram Micro, Inc. Class A (a) 1,400 30,800
Insight Enterprises, Inc. (a) 1,050 24,413
Intergraph Corp. (a) 200 1,106
International Business 14,900 2,533,000
Machines Corp.
Iomega Corp. (a) 2,500 15,156
Itron, Inc. (a) 100 700
Komag, Inc. (a) 1,500 10,500
Kronos, Inc. (a) 400 16,925
Lexmark International Group, 1,000 103,188
Inc. Class A (a)
Micron Electronics, Inc. (a) 1,600 23,000
MICROS Systems, Inc. (a) 600 16,725
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT
- - CONTINUED
MMC Networks, Inc. (a) 1,200 $ 16,875
MRV Communications, Inc. (a) 500 3,344
MTI Technology Corp. (a) 200 1,150
Network Appliance, Inc. (a) 1,400 58,800
ObjectSoft Corp. (a) 3,500 10,500
Pitney Bowes, Inc. 4,800 303,300
Planar Systems, Inc. (a) 100 850
Pomeroy Computer Resources, 200 4,525
Inc. (a)
Programmer's Paradise, Inc. 1,200 15,150
(a)
Proxim, Inc. (a) 800 25,000
Quantum Corp. (a) 3,526 57,959
Radisys Corp. (a) 200 5,125
Read-Rite Corp. (a) 1,000 8,500
Safeguard Scientifics, Inc. 1,000 37,375
(a)
SanDisk Corp. (a) 900 25,200
Scan-Optics, Inc. (a) 100 419
SCI Systems, Inc. (a) 500 15,469
SCM Microsystems, Inc. (a) 300 24,900
Seagate Technology, Inc. (a) 3,300 95,494
SED International Holdings, 100 363
Inc. (a)
SEEQ Technology, Inc. (a) 100 256
Sequent Computer Systems, 1,900 18,109
Inc. (a)
Silicon Graphics, Inc. (a) 3,800 60,563
Splash Technology Holdings, 100 700
Inc. (a)
Sun Microsystems, Inc. (a) 5,900 574,144
Symbol Technologies, Inc. 1,400 74,200
Syquest Technology, Inc. (a) 1,100 103
Tech Data Corp. (a) 1,800 30,600
Telxon Corp. 1,200 7,650
Trident Microsystems, Inc. (a) 100 550
Unisys Corp. (a) 3,500 104,344
Western Digital Corp. (a) 500 4,813
Xerox Corp. 10,400 573,950
10,087,438
ELECTRONIC INSTRUMENTS - 0.4%
Anadigics, Inc. (a) 400 5,675
Applied Materials, Inc. (a) 5,700 317,063
Barringer Technologies, Inc. 100 750
(a)
Beckman Coulter, Inc. 1,100 53,144
Cerprobe Corp. (a) 100 1,500
Cholestech Corp. (a) 100 300
Chromatics Color Sciences 500 3,313
International, Inc. (a)
Cohu, Inc. 100 2,363
Credence Systems Corp. (a) 800 16,900
Electro Scientific 200 7,313
Industries, Inc. (a)
Helix Technology, Inc. 200 3,938
KLA-Tencor Corp. (a) 1,100 56,994
Kulicke & Soffa Industries, 900 22,838
Inc. (a)
LAM Research Corp. (a) 900 26,606
Perkin-Elmer Corp. 919 87,075
SHARES VALUE (NOTE 1)
Reliability, Inc. (a) 100 $ 456
Sawtek, Inc. (a) 900 20,025
Silicon Valley Group, Inc. (a) 400 5,325
Smart Modular Technologies, 1,400 22,488
Inc. (a)
Tektronix, Inc. 300 5,850
Teradyne, Inc. (a) 1,100 52,388
Thermo Electron Corp. (a) 1,600 22,100
Thermo Instrument Systems, 800 11,850
Inc. (a)
Trimble Navigation Ltd. (a) 100 825
Varian Associates, Inc. 1,300 41,600
Waters Corp. (a) 800 74,450
Zygo Corp. (a) 200 2,250
865,379
ELECTRONICS - 3.2%
3Dfx Interactive, Inc. (a) 400 4,350
8X8, Inc. (a) 1,100 4,813
Act Manufacturing, Inc. (a) 100 1,513
Actel Corp. (a) 800 10,400
Advanced Micro Devices, Inc. 1,600 28,600
(a)
Altera Corp. (a) 1,200 58,350
American Xtal Technology, 1,300 19,338
Inc. (a)
AMP, Inc. 4,157 221,100
Analog Devices, Inc. (a) 2,000 50,125
Applied Micro Circuits Corp. 700 27,475
(a)
Arrow Electronics, Inc. (a) 1,500 21,281
Artesyn Technologies, Inc. (a) 1,600 23,700
Atmel Corp. (a) 500 8,594
Avnet, Inc. 1,200 47,625
AVX Corp. 200 2,738
Brightpoint, Inc. (a) 1,700 25,288
Broadcom Corp. Class A 500 30,094
Burr-Brown Corp. (a) 300 6,075
C-Cube Microsystems, Inc. (a) 1,300 24,375
Cidco, Inc. (a) 700 3,019
Cirrus Logic, Inc. (a) 200 1,625
Conexant Systems, Inc. (a) 1,450 24,650
Cree Research, Inc. (a) 400 13,075
CTS Corp. 800 39,150
Cypress Semiconductor Corp. 400 3,825
(a)
Dallas Semiconductor Corp. 1,100 38,913
Digital Microwave Corp. (a) 1,715 13,666
DII Group, Inc. (a) 1,000 23,375
Electroglas, Inc. (a) 200 2,581
ESS Technology, Inc. (a) 200 1,150
Etec Systems, Inc. (a) 600 26,588
Exar Corp. (a) 100 1,519
Gatefield Corp. (a) 200 156
General Semiconductor, Inc. 100 650
(a)
Hadco Corp. (a) 400 12,750
Harmonic Lightwaves, Inc. (a) 800 19,100
hi/fn, Inc. (a) 25 669
Innovex, Inc. 300 4,538
Integrated Circuit Systems, 200 3,725
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Integrated Device Technology, 500 $ 3,219
Inc. (a)
Integrated Silicon Solution 100 278
(a)
Intel Corp. 26,800 3,214,325
International Rectifier Corp. 400 2,750
(a)
KEMET Corp. (a) 200 2,200
Kent Electronics Corp. (a) 900 10,238
Lattice Semiconductor Corp. 800 31,900
(a)
Linear Technology Corp. 1,800 78,863
LSI Logic Corp. (a) 1,700 44,094
Marshall Industries (a) 200 2,850
Maxim Integrated Products, 2,600 108,388
Inc. (a)
Methode Electronics, Inc. 100 1,050
Class A
Micrel, Inc. (a) 700 31,500
Micro Linear Corp. (a) 100 500
Microchip Technology, Inc. (a) 1,000 27,250
Micron Technology, Inc. (a) 3,800 218,975
Microsemi Corp. (a) 100 1,050
Molex, Inc. 3,450 92,288
Motorola, Inc. 9,300 653,325
National Semiconductor Corp. 1,400 14,700
(a)
NeoMagic Corp. (a) 1,500 16,313
Photronics, Inc. (a) 700 14,394
Pioneer Standard Electronics, 1,300 10,075
Inc.
Power Integrations, Inc. (a) 800 19,300
QLogic Corp. (a) 600 34,875
Rambus, Inc. (a) 400 29,075
Reptron Electronics, Inc. (a) 100 388
RF Micro Devices, Inc. (a) 500 38,500
S3, Inc. (a) 2,500 22,031
Sanmina Corp. (a) 1,018 53,191
SDL, Inc. (a) 500 27,250
Semtech Corp. (a) 500 15,188
Sipex Corp. (a) 900 10,294
Solectron Corp. (a) 3,400 151,938
Speedfam International, Inc. 600 9,788
(a)
Standard Microsystems Corp. 100 825
(a)
Sterling Commerce, Inc. (a) 1,900 49,400
Storage Technology Corp. (a) 1,400 48,738
Telcom Semiconductor, Inc. (a) 100 431
Texas Instruments, Inc. 6,000 535,125
Thomas & Betts Corp. 1,700 70,869
Transwitch Corp. (a) 500 17,375
Triquint Semiconductor, Inc. 100 1,656
(a)
Uniphase Corp. (a) 700 61,688
Videoserver, Inc. (a) 100 1,275
Vishay Intertechnology, Inc. 1,030 13,326
Vitesse Semiconductor Corp. 800 36,750
(a)
VLSI Technology, Inc. (a) 1,500 23,250
World Access, Inc. (a) 1,734 13,655
SHARES VALUE (NOTE 1)
Xilinx, Inc. (a) 900 $ 62,775
Zoran Corp. (a) 100 1,800
6,781,839
PHOTOGRAPHIC EQUIPMENT - 0.2%
Eastman Kodak Co. 5,800 383,888
Imation Corp. (a) 1,700 26,350
In Focus Systems, Inc. (a) 400 3,300
Polaroid Corp. 1,900 45,363
458,901
TOTAL TECHNOLOGY 40,521,266
TRANSPORTATION - 1.1%
AIR TRANSPORTATION - 0.4%
AirTran Holdings, Inc. (a) 400 1,350
Alaska Air Group, Inc. (a) 1,000 50,688
America West Holding Corp. 1,600 27,200
Class B (a)
AMR Corp. (a) 2,300 127,506
ASA Holdings, Inc. 200 6,713
Atlantic Coast Airlines 700 22,400
Holdings (a)
Atlas Air, Inc. (a) 150 4,519
Comair Holdings, Inc. 1,150 43,269
Continental Airlines, Inc. 1,100 38,088
Class B (a)
Delta Air Lines, Inc. 2,900 176,356
Great Lakes Aviation Ltd. (a) 200 513
Mesa Air Group, Inc. (a) 200 1,363
Midway Airlines Corp. (a) 100 1,288
Midwest Express Holdings, 300 8,063
Inc. (a)
Navigant International, Inc. 700 3,938
(a)
Northwest Airlines Corp. 800 20,000
Class A (a)
SkyWest, Inc. 700 22,006
Southwest Airlines Co. 4,375 131,797
Transportation World 1,400 8,313
Airlines, Inc. (a)
Travel Services 700 10,675
International, Inc. (a)
UAL Corp. (a) 1,300 77,675
US Airways Group, Inc. (a) 900 42,638
Viad Corp. 600 15,863
842,221
RAILROADS - 0.4%
ABC Rail Products Corp. (a) 100 1,413
Burlington Northern Santa Fe 8,700 288,188
Corp.
CSX Corp. 3,700 145,225
Kansas City Southern 1,200 56,100
Industries, Inc.
Norfolk Southern Corp. 6,200 173,988
Trinity Industries, Inc. 600 19,763
Union Pacific Corp. 4,500 210,938
Wisconsin Central 700 9,625
Transportation Corp. (a)
905,240
SHIPPING - 0.0%
Alexander & Baldwin, Inc. 400 7,900
Hvide Marine, Inc. (a) 300 1,369
Marine Transport Corp. (a) 10 28
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - CONTINUED
SHIPPING - CONTINUED
OMI Corp. (a) 100 $ 156
Trico Marine Services, Inc. 400 1,800
(a)
11,253
TRUCKING & FREIGHT - 0.3%
Air Express International 900 15,806
Corp.
Airborne Freight Corp. 1,300 50,700
American Freightways Corp. (a) 300 4,678
Arkansas Best Corp. (a) 300 2,306
C.H. Robinson Worldwide, Inc. 1,200 31,500
CNF Transportation, Inc. 1,200 50,700
Consolidated Freightways 300 4,350
Corp. (a)
Eagle USA Airfreight, Inc. (a) 700 20,213
Expeditors International of 600 27,938
Washington, Inc.
FDX Corp. (a) 2,280 217,740
Fritz Companies, Inc. (a) 100 744
Hunt (J.B.) Transport 500 11,750
Services, Inc.
Landstar System, Inc. (a) 100 3,772
M.S. Carriers, Inc. (a) 100 2,700
Roadway Express, Inc. 500 7,688
Swift Transportation Co., 900 26,944
Inc. (a)
US Xpress Enterprises, Inc. 100 1,600
(a)
USFreightways Corp. 800 25,500
Werner Enterprises, Inc. 700 12,512
XTRA Corp. 300 11,963
Yellow Corp. (a) 500 8,938
540,042
TOTAL TRANSPORTATION 2,298,756
UTILITIES - 10.7%
CELLULAR - 0.8%
Advanced Radio Telecom Corp. 200 1,600
(a)
AirTouch Communications, Inc. 8,900 810,456
(a)
Applied Cellular Technology, 100 275
Inc. (a)
Associated Group, Inc. Class 1,100 54,794
A (a)
Cellnet Data Systems, Inc. (a) 400 2,525
Cellular Communication of 300 7,388
Puerto Rico, Inc.
Cellular Communications 500 39,281
International, Inc. (a)
Century Telephone 2,050 126,588
Enterprises, Inc.
CoreComm Ltd. (a) 300 11,213
Geotek Communications, Inc. 1,200 26
(a)
LCC International, Inc. (a) 200 1,100
Nextel Communications, Inc. 4,000 120,250
Class A (a)
Paging Network, Inc. (a) 600 2,400
Powertel, Inc. (a) 100 1,300
QUALCOMM, Inc. 1,400 102,200
SkyTel Communications, Inc. 300 5,400
(a)
Sprint Corp. Series 1 (PCS 7,200 230,400
Group)
SHARES VALUE (NOTE 1)
Telephone & Data Systems, 1,700 $ 85,425
Inc.
Teligent, Inc. Class A (a) 600 23,588
United States Cellular Corp. 2,100 88,463
(a)
Vanguard Cellular Systems, 1,500 41,813
Inc. Class A (a)
Western Wireless Corp. Class 1,400 37,888
A (a)
1,794,373
ELECTRIC UTILITY - 2.5%
AES Corp. (a) 2,200 81,813
Allegheny Energy, Inc. 2,700 80,156
Ameren Corp. 1,500 55,969
American Electric Power Co., 4,100 170,663
Inc.
Avista Corp. 2,200 36,025
Baltimore Gas & Electric Co. 3,100 79,438
BEC Energy 1,800 65,588
Calenergy, Inc. (a) 1,700 47,706
Carolina Power & Light Co. 1,300 51,838
Central & South West Corp. 2,500 62,031
CINergy Corp. 4,100 119,669
Citizens Utilities Co. Class B 7,225 55,091
CMS Energy Corp. 2,800 115,850
Conectiv, Inc. 600 12,713
Consolidated Edison, Inc. 2,800 130,900
Dominion Resources, Inc. 3,800 146,775
DPL, Inc. 1,150 20,484
DQE, Inc. 1,500 57,281
DTE Energy Co. 3,500 138,250
Duke Energy Corp. 6,400 364,000
Eastern Utilities Associates 1,700 48,344
Edison International 7,200 183,600
Energy East Corp. 900 48,263
Entergy Corp. 3,400 96,050
FirstEnergy Corp. 5,457 159,617
Florida Progress Corp. 2,000 80,250
FPL Group, Inc. 3,700 190,319
GPU, Inc. 2,800 111,650
Illinova Corp. 1,100 26,125
IPALCO Enterprises, Inc. 900 43,144
Kansas City Power & Light Co. 1,700 43,350
KTI, Inc. (a) 300 5,400
LG&E Energy Corp. 1,600 36,500
Midamerican Energy Holdings 1,500 40,500
Co.
Minnesota Power, Inc. 1,400 56,263
Montana Power Co. 1,200 73,050
Nevada Power Co. 900 21,544
New Century Energies, Inc. 2,600 105,463
New England Electric System 1,800 87,638
Niagara Mohawk Power Corp. (a) 5,400 78,975
NIPSCO Industries, Inc. 800 20,750
Northeast Utilities (a) 400 5,975
Northern States Power Co. 2,500 64,531
Northwestern Corp. 400 9,625
OGE Energy Corp. 400 9,550
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
ELECTRIC UTILITY - CONTINUED
PacifiCorp 7,200 $ 129,150
PECO Energy Co. 3,000 106,313
PG&E Corp. 7,500 236,250
Pinnacle West Capital Corp. 2,600 93,925
Potomac Electric Power Co. 1,300 31,688
PP&L Resources, Inc. 2,510 64,005
Public Service Co. of New 1,200 18,450
Mexico
Public Service Enterprise 4,100 155,800
Group, Inc.
Puget Sound Power & Light Co. 2,100 50,663
Reliant Energy, Inc. 3,000 80,438
SCANA Corp. 700 16,450
Sierra Pacific Resources 600 20,588
Southern Co. 9,500 238,094
TECO Energy, Inc. 3,500 75,688
Texas Utilities Co. 5,500 233,406
Unicom Corp. 2,200 78,238
Utilicorp United, Inc. 2,000 68,750
Wisconsin Energy Corp. 3,400 86,913
5,323,525
GAS - 0.7%
AGL Resources, Inc. 200 3,813
Aquila Gas Pipeline Corp. 100 875
Columbia Gas System, Inc. 2,200 111,100
Consolidated Natural Gas Co. 2,300 126,356
CTG Resources, Inc. 100 2,300
Dynegy, Inc. 800 9,600
Eastern Enterprises Co. 600 23,063
El Paso Energy Corp. 2,800 102,025
Enron Corp. 6,000 390,000
Equitable Resources, Inc. 200 5,175
K N Energy, Inc. 2,600 54,438
KeySpan Energy 2,592 68,688
MCN Energy Group, Inc. 1,500 26,719
National Fuel Gas Co. 500 20,156
NICOR, Inc. 1,500 57,281
ONEOK, Inc. 200 5,388
Questar Corp. 1,300 23,238
Sempra Energy 2,902 60,942
Sonat, Inc. 2,800 70,875
Washington Gas Light Co. 200 4,788
Western Resources, Inc. 600 16,913
Williams Companies, Inc. 7,999 295,963
1,479,696
TELEPHONE SERVICES - 6.7%
Aliant Communications, Inc. 800 31,900
Allegiance Telecom, Inc. (a) 1,800 43,088
ALLTEL Corp. 4,892 292,909
Ameritech Corp. 17,500 1,144,063
AT&T Corp. 28,853 2,369,553
Bell Atlantic Corp. 24,400 1,401,475
SHARES VALUE (NOTE 1)
BellSouth Corp. 30,900 $ 1,429,125
Cincinnati Bell, Inc. 2,300 45,425
Commonwealth Telephone 100 3,238
Enterprises, Inc. (a)
COMSAT Corp. Series 1 700 20,475
e.spire Communications, Inc. 1,300 7,150
(a)
Frontier Corp. 3,800 136,563
Global TeleSystems Group, 1,400 77,700
Inc. (a)
GST Telecommunications, Inc. 2,000 14,000
(a)
GTE Corp. 14,900 966,638
Hyperion Telecommunications, 900 10,125
Inc. Class A (a)
ICG Communications, Inc. (a) 900 16,931
ITC DeltaCom, Inc. (a) 600 8,700
IXC Communications, Inc. 1,000 52,000
Level 3 Communications, Inc. 4,700 263,200
(a)
Mastech Corp. (a) 1,500 37,406
MCI WorldCom, Inc. (a) 29,442 2,428,965
McLeodUSA, Inc. Class A (a) 1,400 53,900
Metromedia Fiber Network, 1,400 60,900
Inc. Class A (a)
NEXTLINK Communications, Inc. 800 36,600
Class A (a)
Pacific Gateway Exchange, 700 17,500
Inc. (a)
Primus Telecommunications 461 5,042
Group, Inc. (a)
Qwest Communications 5,170 317,632
International, Inc. (a)
RCN Corp. (a) 1,600 38,400
SBC Communications, Inc. 30,905 1,634,102
Source Media, Inc. (a) 400 6,475
Sprint Corp. (FON Group) 6,500 557,781
STAR Telecommunications, Inc. 1,705 22,165
(a)
Tel-Save.com, Inc. (a) 2,100 20,869
Telegroup, Inc. (a) 300 56
Transaction Network Services, 600 11,775
Inc. (a)
U.S. WEST, Inc. 8,479 452,037
U.S. LEC Corp. Class A 700 10,106
Viatel, Inc. (a) 400 7,650
WinStar Communications, Inc. 600 18,900
(a)
14,072,519
WATER - 0.0%
American Water Works, Inc. 400 12,100
United Water Resources, Inc. 100 1,925
14,025
TOTAL UTILITIES 22,684,138
TOTAL COMMON STOCKS 203,085,741
(Cost $187,180,591)
PREFERRED STOCKS - 0.0%
SHARES VALUE (NOTE 1)
CONVERTIBLE PREFERRED STOCKS
- - 0.0%
CONSTRUCTION & REAL ESTATE -
0.0%
REAL ESTATE INVESTMENT TRUSTS
- - 0.0%
Kimco Realty Corp. Series D 36 $ 891
$1.875
NONCONVERTIBLE PREFERRED
STOCKS - 0.0%
CONSTRUCTION & REAL ESTATE -
0.0%
REAL ESTATE - 0.0%
Price Enterprises, Inc. 100 1,463
Series A $1.40
TOTAL PREFERRED STOCKS 2,354
(Cost $2,352)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -
4.0%
PRINCIPAL AMOUNT
U.S. Treasury Bills, yield at $ 8,542,000 8,493,222
date of purchase 4.24% to
4.7% 3/4/99 to 4/22/99 (b)
(Cost $8,493,907)
TOTAL INVESTMENT IN $ 211,581,317
SECURITIES - 100%
(Cost $195,676,850)
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT UNREALIZED GAIN/(LOSS)
PURCHASED
32 S&P 500 Stock Index Mar. 1999 $ 9,884,000 $ 72,127
Contracts
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENT IN SECURITIES - 4.7%
</TABLE>
LEGEND
(a) Non-income producing
(b) Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end, the value of
securities pledged amounted to $1,060,000.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $161,533,213 and $3,622,307, respectively.
The market value of futures contracts opened and closed during the
period amounted to $181,228,281 and $178,006,156, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $42,076,244. The fund
received cash collateral of $44,045,157 which was invested in the
Bankers Trust Institutional Daily Asset Fund. The fund also received
non-cash collateral of $208,550 which represents U.S. Treasury
obligations.
INCOME TAX INFORMATION
At February 28, 1999, the aggregate cost of investment securities for
income tax purposes was $195,759,517. Net unrealized appreciation
aggregated $15,821,800, of which $28,761,849 related to appreciated
investment securities and $12,940,049 related to depreciated
investment securities.
The fund hereby designates approximately $492,000 as a capital gain
dividend for the purpose of the dividend paid deduction.
A total of 68% of the dividends distributed during the fiscal year
qualifies for the dividends received deductions for corporate
shareholders.
The fund will notify shareholders in January 2000 of the applicable
percentage for use in preparing 1999 income tax returns.
SPARTAN TOTAL MARKET INDEX FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
ASSETS
Investment in securities, at $ 211,581,317
value (cost $195,676,850) -
See accompanying schedule
Cash 10,994
Receivable for investments 32,117
sold
Receivable for fund shares 1,829,776
sold
Dividends receivable 233,351
Interest receivable 10,467
Purchase fees receivable 9,319
Investment of cash collateral 44,045,157
received for securities
loaned
Receivable from investment 6,548
adviser for expense
reductions
TOTAL ASSETS 257,759,046
LIABILITIES
Payable for fund shares $ 287,959
redeemed
Payable for daily variation 47,010
on futures contracts
Other payables and accrued 93,782
expenses
Collateral on securities 44,045,157
loaned, at value
TOTAL LIABILITIES 44,473,908
NET ASSETS $ 213,285,138
Net Assets consist of:
Paid in capital $ 196,451,978
Undistributed net investment 472,562
income
Accumulated undistributed net 384,004
realized gain (loss) on
investments
Net unrealized appreciation 15,976,594
(depreciation) on investments
NET ASSETS, for 6,814,626 $ 213,285,138
shares outstanding
NET ASSET VALUE, offering $31.30
price and redemption price
per share ($213,285,138
(divided by) 6,814,626
shares) A
A OFFERING PRICE PER SHARE DOES NOT INCLUDE THE EFFECT OF THE PURCHASE
FEE.
STATEMENT OF OPERATIONS
YEAR ENDED FEBRUARY 28, 1999
INVESTMENT INCOME $ 1,308,709
Dividends
Interest (including income on 346,869
securities loaned of $56,115)
TOTAL INCOME 1,655,578
EXPENSES
Management fee and $ 259,373
sub-advisory fees
Transfer agent fees 150,265
Accounting fees 68,663
Non-interested trustees' 304
compensation
Registration fees 140,306
Audit 38,588
Legal 568
Miscellaneous 173
Total expenses before 658,240
reductions
Expense reductions (389,407) 268,833
NET INVESTMENT INCOME 1,386,745
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 45,288
Futures contracts 897,827 943,115
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 13,650,337
Futures contracts (13,702) 13,636,635
NET GAIN (LOSS) 14,579,750
NET INCREASE (DECREASE) IN $ 15,966,495
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET YEAR ENDED FEBRUARY 28, 1999 NOVEMBER 5, 1997
ASSETS (COMMENCEMENT OF
OPERATIONS) TO FEBRUARY 28,
1998
Operations Net investment $ 1,386,745 $ 125,196
income
Net realized gain (loss) 943,115 230,371
Change in net unrealized 13,636,635 2,339,959
appreciation (depreciation)
NET INCREASE (DECREASE) IN 15,966,495 2,695,526
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (994,904) (56,554)
From net investment income
From net realized gain (762,761) -
TOTAL DISTRIBUTIONS (1,757,665) (56,554)
Share transactions Net 199,132,653 42,880,647
proceeds from sales of shares
Reinvestment of distributions 1,689,270 56,508
Cost of shares redeemed (41,593,739) (6,952,594)
NET INCREASE (DECREASE) IN 159,228,184 35,984,561
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Purchase fees 1,006,563 218,028
TOTAL INCREASE (DECREASE) 174,443,577 38,841,561
IN NET ASSETS
NET ASSETS
Beginning of period 38,841,561 -
End of period (including $ 213,285,138 $ 38,841,561
undistributed net investment
income of $472,562 and
$75,013, respectively)
OTHER INFORMATION
Shares
Sold 6,798,202 1,666,819
Issued in reinvestment of 56,636 2,259
distributions
Redeemed (1,438,525) (270,765)
Net increase (decrease) 5,416,313 1,398,313
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 27.78 $ 25.00
period
Income from Investment
Operations
Net investment income D .41 .15
Net realized and unrealized 3.33 2.45
gain (loss)
Total from investment 3.74 2.60
operations
Less Distributions
From net investment income (.23) (.08)
From net realized gain (.28) -
Total distributions (.51) (.08)
Purchase fees added to paid .29 .26
in capital
Net asset value, end of period $ 31.30 $ 27.78
TOTAL RETURN B, C 14.61% 11.48%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 213,285 $ 38,842
(000 omitted)
Ratio of expenses to average .27% F .25% A, F
net assets
Ratio of net investment 1.40% 1.91% A
income to average net assets
Portfolio turnover rate 4% 7% A
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS OF
LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE BEEN
LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES OUTSTANDING DURING THE
PERIOD.
E FOR THE PERIOD NOVEMBER 5, 1997
(COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998.
F FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER.
SPARTAN EXTENDED MARKET INDEX FUND
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. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value) and the effect of the 0.75% purchase fee. If
Fidelity had not reimbursed certain fund expenses, the total returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR LIFE OF FUND
1999
SPARTAN EXTENDED MARKET INDEX -1.33% 5.96%
SPARTAN EXTENDED MARKET INDEX -2.07% 5.17%
(INCL. 0.75% PURCHASE FEE)
Wilshire 4500 -1.64% 4.10%
Growth & Income Funds Average 6.49% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year or since the fund
started on November 5, 1997. For example, if you had invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's return to the
performance of the Wilshire 4500 Index - a market
capitalization-weighted index of approximately 6,500 U.S. equity
securities. The Wilshire 4500 includes all the stocks in the Wilshire
5000 except for stocks included in the S&P 500. To measure how the
fund's performance stacked up against its peers, you can compare it to
the Growth & Income Funds Average, which reflects the performance of
mutual funds with similar objectives tracked by Lipper Inc. The past
one year average represents a peer group of 801 mutual funds. These
benchmarks include reinvested dividends and capital gains, if any, and
exclude the effect of sales charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR LIFE OF FUND
1999
SPARTAN EXTENDED MARKET INDEX -1.33% 4.50%
SPARTAN EXTENDED MARKET INDEX -2.07% 3.91%
(INCL. 0.75% PURCHASE FEE)
Wilshire 4500 -1.64% 3.10%
Growth & Income Funds Average 6.49% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
SPARTAN EXT MKT INDEX WILSHIRE 4500
00398 WA008
1997/11/05 9925.00 10000.00
1997/11/30 9786.05 9736.03
1997/12/31 10029.23 9974.27
1998/01/31 9909.78 9831.84
1998/02/28 10658.29 10583.68
1998/03/31 11191.80 11130.96
1998/04/30 11311.03 11271.99
1998/05/31 10781.39 10745.37
1998/06/30 10961.95 10912.78
1998/07/31 10336.01 10294.57
1998/08/31 8301.71 8299.79
1998/09/30 8935.67 8898.95
1998/10/31 9461.30 9404.68
1998/11/30 10087.24 9989.75
1998/12/31 10963.39 10835.18
1999/01/31 11106.78 11009.19
1999/02/26 10516.83 10410.18
IMATRL PRASUN SHR__CHT 19990228 19990309 112158 R00000000000019
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Spartan Extended Market Index Fund on November 5, 1997,
when the fund started, and the current 0.75% purchase fee was paid. As
the chart shows, by February 28, 1999, the value of the investment
would have been $10,517 - a 5.17% increase on the initial investment.
For comparison, look at how the Wilshire 4500 Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have been $10,410 - a 4.10% increase.
(checkmark)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 long-term growth and short-term
volatility. 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.
SPARTAN EXTENDED MARKET INDEX FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Frank Salerno)
An interview with Frank Salerno, Portfolio Manager of Spartan Extended
Market Index Fund for Bankers Trust, sub-adviser of the fund
Q. HOW DID THE FUND PERFORM, FRANK?
A. For the 12 months that ended February 28, 1999, the fund posted a
total return of -1.33% (figure does not include the purchase fee).
Fund performance compared well with the -1.64% return for the Wilshire
4500 Index during the same period. The fund also compares its
performance to the Lipper Inc. growth & income funds average, which
returned 6.49% during the same 12 month period.
Q. HOW WOULD YOU CHARACTERIZE THE MARKET ENVIRONMENT DURING THE
PERIOD?
A. During the first half of the year, fund performance suffered in
response to extreme volatility and uncertainty in global markets.
While financial conditions remained positive on the home front amidst
low interest rates, consistently non-existent signs of inflation and
strong consumer spending, U.S. investors became increasingly concerned
about the impact of the Asian crisis and problems in Russia and Latin
America. During the six-month period that ended August 31, 1998, the
fund and the Wilshire 4500 Index posted total returns of -22.11% and
- -21.58%, respectively. This gloomy environment, however, was quickly
reversed in the last few months of 1998 when the Federal Reserve Board
stepped in and cut interest rates three times in an effort to restore
confidence and liquidity to the markets. In response, the market, most
notably large-cap stocks, staged an impressive comeback by the end of
1998. Despite some concerns over Brazil's currency devaluation and
jitters about corporate earnings, the beat went on in 1999, as most
U.S. stock indexes continued their advance.
Q. AT APPROXIMATELY 19%, TECHNOLOGY WAS THE FUND'S LARGEST INDUSTRY
WEIGHTING. HOW DID THIS SECTOR FARE?
A. Many computer software and hardware companies, as well as a range
of other technology stocks, posted strong results, as demand for
computers remained solid and Internet commerce skyrocketed. However,
because the Wilshire 4500 Index does not include stocks from the
Standard & Poor's 500, the fund did not benefit from the strong
performance of large-cap technology stocks such as Microsoft, Dell and
Intel. About 80% of the fund's performance is driven by medium- and
small-cap stocks, which lagged larger-cap stocks during this volatile
period. Some of the fund's larger holdings included Internet companies
Yahoo! and Amazon.com, which posted mixed results late in the period
due to investor concerns about high valuations.
Q. THE FINANCE SECTOR WAS THE SECOND LARGEST INDUSTRY WEIGHTING. HOW
DID THESE STOCKS PERFORM?
A. Financial stocks were among the hardest hit by the effects of a
global economic crisis during a difficult third quarter in 1998. While
the financial sector staged a recovery in the fourth quarter of 1998
and early 1999, larger-cap financial stocks were the primary
beneficiaries of three interest-rate cuts by the Fed. The fund's
holdings in companies such as UnionBanCal and SouthTrust posted
lackluster results.
Q. WHAT'S YOUR OUTLOOK?
A. While the market was helped by falling interest rates and the
economy remained healthy last year, I think there are a number of
hurdles that could trip up the market in 1999. First, with stock
valuations at record-high levels, any earnings disappointments could
result in weakness for the broader market. Second, there is a
possibility that deflation could hurt the markets and corporate
profits. Finally, the potential Y2K computer glitch could make
investors nervous. Whether none or all of these scenarios impact stock
prices, it seems global excess capacity and ongoing weakness overseas
could provide a difficult backdrop in which to produce earnings growth
in 1999.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE A-2.
NOTE TO SHAREHOLDERS:
On November 30, 1998, Bankers Trust Corporation entered into an
Agreement and Plan of Merger with Deutsche Bank AG. The merger is
contingent upon various regulatory approvals. At a meeting held on
March 18, 1999, the fund's Board of Trustees approved a new
sub-advisory agreement among the fund, Fidelity Management & Research
Co. and Bankers Trust or its successor by merger that would be
effective at the time of the merger. This agreement will be presented
to the fund's shareholders for approval.
Shares purchased after April 28, 1999 will no longer be subject to a
0.75% purchase fee. However, the fund will deduct a short-term trading
fee of 0.75% from the redemption amount if you sell shares purchased
after April 28, 1999 after holding them for less than 90 days. This
fee is paid to the fund, and is designed to offset the brokerage
commissions, market impact, and other costs associated with
fluctuations in fund asset levels and cash flow caused by short-term
shareholder trading.
(checkmark)FUND FACTS
GOAL: total return that corresponds to that of
the Wilshire 4500 Index
FUND NUMBER: 398
TRADING SYMBOL: FSEMX
START DATE: November 5, 1997
SIZE: as of February 28, 1999, more than
$62 million
MANAGER: Frank Salerno, since inception
SPARTAN EXTENDED MARKET INDEX FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF FEBRUARY
28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE STOCKS 6 MONTHS AGO
Berkshire Hathaway, Inc. 3.8 3.2
Class A
Yahoo!, Inc. 1.1 0.3
Qwest Communications 0.8 0.4
International, Inc.
Amazon.com, Inc. 0.7 0.2
Cox Communications, Inc. 0.7 0.4
Class A
Level 3 Communications, Inc. 0.6 0.4
Equitable Companies (The), Inc. 0.6 0.5
eBay, Inc. 0.5 0.0
At Home Corp. Series A 0.5 0.2
AFLAC, Inc. 0.4 0.3
TOP TEN MARKET SECTORS AS OF
FEBRUARY 28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE MARKET SECTORS 6
MONTHS AGO
TECHNOLOGY 19.5 15.0
FINANCE 19.3 19.8
UTILITIES 8.7 8.7
MEDIA & LEISURE 8.1 7.6
HEALTH 7.7 8.0
CONSTRUCTION & REAL ESTATE 7.3 8.0
RETAIL & WHOLESALE 5.0 5.3
SERVICES 4.8 4.6
DURABLES 3.8 4.4
BASIC INDUSTRIES 3.2 3.6
</TABLE>
SPARTAN EXTENDED MARKET INDEX FUND
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 98.7%
SHARES VALUE (NOTE 1)
AEROSPACE & DEFENSE - 1.1%
AEROSPACE & DEFENSE - 0.8%
AAR Corp. 850 $ 12,856
Advanced Aerodynamics & 600 1,838
Structures, Inc. Class A (a)
Advanced Technical Products, 100 763
Inc. (a)
Alliant Techsystems, Inc. (a) 408 32,309
Aviall, Inc. (a) 1,000 13,813
Banner Aerospace, Inc. (a) 160 1,490
BE Aerospace, Inc. (a) 700 10,325
Cordant Technologies, Inc. 1,100 42,831
Curtiss-Wright Corp. 100 3,756
Fairchild Corp. Class A (a) 324 3,908
GenCorp, Inc. 600 12,038
Gulfstream Aerospace Corp. (a) 1,700 76,075
Harsco Corp. 1,100 30,869
Howmet International, Inc. (a) 1,700 27,413
Kellstrom Industries, Inc. (a) 600 9,713
Moog, Inc. Class A (a) 100 3,188
OEA, Inc. 1,600 17,800
Orbital Sciences Corp. (a) 900 24,863
Precision Castparts Corp. 700 25,988
Primex Technologies, Inc. 200 8,313
Sequa Corp. Class A (a) 300 14,119
Simula, Inc. (a) 100 606
Sturm Ruger & Co., Inc. 400 3,750
Sundstrand Corp. 1,500 101,531
United Industrial Corp. 100 869
Wyman-Gordon Co. (a) 1,800 14,513
495,537
DEFENSE ELECTRONICS - 0.2%
Alpha Industries, Inc. (a) 900 18,338
Cubic Corp. 100 1,838
Ducommun, Inc. (a) 150 1,875
Flir Systems, Inc. (a) 600 11,025
Frequency Electronics, Inc. 150 1,125
Litton Industries, Inc. (a) 1,000 56,125
Nichols Research Corp. (a) 700 12,338
REMEC, Inc. (a) 800 13,750
Scott Technologies, Inc. 1,000 16,188
Class A (a)
Stanford Telecommunications, 100 1,203
Inc. (a)
133,805
SHIP BUILDING & REPAIR - 0.1%
Avondale Industries, Inc. 700 21,613
Dril-Quip, Inc. (a) 400 5,100
Halter Marine Group, Inc. (a) 800 3,200
Newport News Shipbuilding, 1,300 37,619
Inc.
67,532
TOTAL AEROSPACE & DEFENSE 696,874
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - 3.2%
CHEMICALS & PLASTICS - 1.4%
Airgas, Inc. (a) 1,100 $ 9,900
Albemarle Corp. 1,440 34,020
Arch Chemicals, Inc. (a) 650 12,350
Atmi, Inc. (a) 300 6,825
Bush Boake Allen, Inc. (a) 200 6,388
Cabot Corp. 1,100 27,706
Carbide/Graphite Group, Inc. 200 2,425
(The) (a)
Catalytica, Inc. (a) 1,100 15,675
ChemFirst, Inc. 300 5,700
Crompton & Knowles Corp. 2,200 40,700
Cytec Industries, Inc. (a) 900 24,131
Eco Soil Systems, Inc. (a) 500 3,031
Ethyl Corp. 1,200 5,850
Ferro Corp. 1,000 21,375
First Years, Inc. (The) 200 3,050
Foamex International, Inc. 800 7,700
Fuller (H.B.) Co. 500 21,188
Furon Co. 200 2,375
General Chemical Group, Inc. 1,000 15,375
Geon Co. 1,000 22,813
Georgia Gulf Corp. 500 7,563
Gundle/SLT Environmental, 100 394
Inc. (a)
Hanna (M.A.) Co. 1,500 16,500
Hawkins Chemicals, Inc. 100 1,006
IMC Global, Inc. 2,080 41,470
International Specialty 1,100 9,694
Products, Inc. (a)
Isolyser, Inc. (a) 1,000 2,125
Ivex Packaging Corp. (a) 500 7,563
Lamson & Sessions Co. (a) 100 488
Lawter International, Inc. 500 3,563
Leading Edge Packaging, Inc. 100 75
(a)
Lubrizol Corp. 1,800 34,313
Lydall, Inc. (a) 200 1,900
Lyondell Petrochemical Co. 2,000 26,750
MacDermid, Inc. 600 22,500
McWhorter Technologies, Inc. 100 1,456
(a)
Millennium Chemicals, Inc. 2,300 41,544
Minerals Technologies, Inc. 600 25,763
Mississippi Chemical Corp. 300 3,075
Myers Industries, Inc. 200 3,900
NL Industries, Inc. 1,100 10,656
O'Sullivan Corp. 200 1,725
Oil-Dri Corp. of America 100 1,525
Olin Corp. 1,300 16,494
OM Group, Inc. 500 14,531
Park Electrochemical Corp. 100 2,713
Schulman (A.), Inc. 1,200 19,800
Scotts Co. Class A (a) 700 22,663
Solutia, Inc. 3,200 57,000
Spartech Corp. 300 7,088
Stepan Co. 100 2,363
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - CONTINUED
CHEMICALS & PLASTICS -
CONTINUED
Synalloy Corp. 100 $ 850
Synetic, Inc. (a) 500 21,969
Synthetech, Inc. (a) 100 509
Terra Industries, Inc. 1,100 5,431
Tredegar Industries, Inc. 355 9,075
Tuscarora Plastics, Inc. 100 1,375
Uniroyal Technology Corp. (a) 100 838
USEC, Inc. 2,300 32,631
Valhi, Inc. 1,700 19,550
Valspar Corp. 1,300 42,250
Viskase Companies, Inc. (a) 100 400
Wellman, Inc. 1,600 14,900
Witco Corp. 1,200 20,325
866,880
IRON & STEEL - 0.4%
AK Steel Holding Corp. 1,600 34,900
Ampco-Pittsburgh Corp. 100 938
Atchison Casting Corp. (a) 100 975
Barnes Group, Inc. 200 3,813
Birmingham Steel Corp. 2,300 9,488
Carpenter Technology Corp. 1,000 25,938
Citation Corp. (a) 100 1,019
Cleveland-Cliffs, Inc. 600 22,238
Cold Metal Products, Inc. (a) 100 238
Commercial Metals Co. 700 15,969
Fansteel, Inc. (a) 100 525
Gibraltar Steel Corp. 100 2,000
Huntco, Inc. Class A 100 425
Insteel Industries, Inc. 100 613
Keystone Consolidated 100 750
Industries, Inc. (a)
LTV Corp. 2,700 14,850
Material Sciences Corp. (a) 200 1,438
Mueller Industries, Inc. (a) 600 12,675
National Steel Corp. Class B 1,700 14,025
Northwest Pipe Co. (a) 100 1,475
NS Group, Inc. (a) 300 1,181
Oregon Steel Mills, Inc. 400 3,825
Park-Ohio Holdings Corp. (a) 100 1,545
Quanex Corp. 800 14,000
Roanoke Electric Steel Corp. 150 2,034
Rouge Industries, Inc. Class A 200 1,988
Schnitzer Steel Industries, 100 1,388
Inc. Class A
SEMX Corp. (a) 100 206
Shiloh Industries, Inc. (a) 100 1,225
SPS Technologies, Inc. (a) 200 8,250
Steel Dynamics, Inc. (a) 700 11,025
Steel Technologies, Inc. 100 802
Sun Hydraulics Corp. 100 913
Titan International, Inc. 300 2,231
Webco Industries, Inc. (a) 100 556
SHARES VALUE (NOTE 1)
Whittaker Corp. (a) 100 $ 2,013
WHX Corp. (a) 700 6,081
223,555
METALS & MINING - 0.4%
AFC Cable Systems, Inc. (a) 200 6,625
Amcol International Corp. 350 3,325
Belden, Inc. 1,000 18,063
Brush Wellman, Inc. 800 11,500
Cable Design Technology Corp. 350 4,528
(a)
Castle A.M. & Co. 200 2,725
Century Aluminum Co. 300 1,650
Commonwealth Industries, Inc. 500 5,406
Commscope, Inc. (a) 1,100 20,419
Encore Wire Corp. (a) 450 4,247
General Cable Corp. 1,150 21,634
IMCO Recycling, Inc. 200 2,513
International FiberCom, Inc. 1,000 7,063
(a)
Kaiser Aluminum Corp. (a) 600 3,000
Martin Marietta Materials, 1,300 66,706
Inc.
Matthews International Corp. 600 17,175
Class A
MAXXAM, Inc. (a) 100 5,850
Metals USA, Inc. (a) 300 2,738
Olympic Steel, Inc. (a) 500 4,188
Optical Cable Corp. (a) 500 5,875
Reliance Steel & Aluminum Co. 600 15,338
RTI International Metals, 300 3,188
Inc. (a)
Ryerson Tull, Inc. (a) 664 12,118
Special Metals Corp. (a) 200 1,425
Superior Telecom, Inc. 531 15,034
Titanium Metals Corp. 900 6,356
Wolverine Tube, Inc. 700 13,913
282,602
PACKAGING & CONTAINERS - 0.2%
Alltrista Corp. (a) 100 2,400
BWAY Corp. (a) 100 1,288
EarthShell Corp. (a) 2,600 24,213
Gaylord Container Corp. Class 700 4,725
A (a)
Greif Brothers Corp. Class A 300 8,438
Shorewood Packaging Corp. (a) 400 7,275
Silgan Holdings, Inc. (a) 500 11,094
Sonoco Products Co. 2,650 64,925
U.S. Can Corp. (a) 200 3,188
127,546
PAPER & FOREST PRODUCTS - 0.8%
Albany International Corp. 1,225 24,041
Class A
American Bank Note 700 1,750
Holographics, Inc. (a)
American Pad & Paper Co. (a) 400 625
Bowater, Inc. 1,000 42,125
Buckeye Technologies, Inc. (a) 500 6,469
Caraustar Industries, Inc. 800 20,500
Chesapeake Corp. 400 12,600
Consolidated Papers, Inc. 2,300 51,175
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
BASIC INDUSTRIES - CONTINUED
PAPER & FOREST PRODUCTS -
CONTINUED
Georgia-Pacific Corp. (Timber 2,300 $ 46,863
Group)
Glatfelter (P.H.) Co. 300 3,206
Longview Fibre Co. 700 7,919
Mail-Well, Inc. (a) 1,300 18,363
PalEx, Inc. (a) 100 906
Pentair, Inc. 600 22,725
Pope & Talbot, Inc. 100 694
Precept Business Services, 600 9,900
Inc. (a)
Rayonier, Inc. 1,000 40,938
Rock-Tenn Co. Class A 600 10,350
Smurfit-Stone Container Corp. 4,500 81,281
(a)
The St. Joe Co. 1,900 40,969
U.S. Timberlands Co. L P 1,100 14,438
Unisource Worldwide, Inc. 2,600 18,200
Wausau-Mosinee Paper Corp. 840 13,335
Workflow Management, Inc. (a) 1,301 9,188
498,560
TOTAL BASIC INDUSTRIES 1,999,143
CONSTRUCTION & REAL ESTATE -
7.3%
BUILDING MATERIALS - 1.2%
Aaon, Inc. (a) 100 856
Aavid Thermal Technologies, 500 7,094
Inc. (a)
ACX Technologies, Inc. (a) 400 4,975
American Precision 100 969
Industries, Inc. (a)
American Residential 200 725
Services, Inc. (a)
American Standard Companies, 1,500 50,344
Inc. (a)
American Woodmark Corp. 100 3,513
Barnett, Inc. (a) 600 6,263
Carlisle Companies, Inc. 400 16,550
Centex Construction Products, 700 24,981
Inc.
Dal-Tile International, Inc. 1,900 17,456
(a)
Drew Industries, Inc. (a) 100 1,206
Elcor Corp. 550 17,325
Fastenal Co. 900 34,200
Florida Rock Industries, Inc. 200 5,600
Giant Cement Holding, Inc. (a) 600 11,775
Hexcel Corp. (a) 500 4,219
Hussmann International, Inc. 800 11,300
ICC Technologies, Inc. (a) 900 4,781
Industrial Holdings, Inc. (a) 100 863
Johns Manville Corp. 3,800 66,738
Justin Industries, Inc. 300 3,206
Kaynar Technologies, Inc. (a) 400 11,200
Lafarge Corp. 1,200 38,250
Lilly Industries, Inc. Class A 300 5,119
Lone Star Industries, Inc. 600 19,800
Mestek, Inc. (a) 100 1,956
Mobile Mini, Inc. (a) 500 6,000
SHARES VALUE (NOTE 1)
Nortek, Inc. (a) 100 $ 2,600
Penn Engineering & 100 1,981
Manufacturing Corp.
(non-vtg.)
Raytech Corp. (a) 100 300
Republic Group, Inc. 100 1,519
Robbins & Myers, Inc. 200 3,300
Rock of Ages Corp. Class A (a) 600 7,500
ROHN Industries, Inc. (a) 700 1,400
RPM, Inc. 1,525 21,064
Selas Corp. of America 100 594
Shaw Group (a) 100 1,369
Southdown, Inc. 664 31,333
T.J. International, Inc. 400 8,650
Tecumseh Products Co. Class A 800 39,400
Texas Industries, Inc. 700 17,238
Thermo TerraTech, Inc. (a) 200 1,000
United Dominion Industries 1,479 28,593
Ltd.
Universal Forest Products, 100 2,006
Inc.
USG Corp. 1,400 70,175
Vulcan Materials Co. 700 94,325
Watsco, Inc. Class A 300 3,506
West Pharmaceutical Services, 179 5,918
Inc.
York International Corp. 1,200 43,500
764,535
CONSTRUCTION - 0.7%
American Buildings Co. (a) 100 2,025
American Homestar Corp. (a) 500 3,688
Avatar Holdings, Inc. (a) 800 15,350
Beazer Homes USA, Inc. (a) 600 13,050
Castle & Cooke, Inc. (a) 610 9,455
Cavalier Homes, Inc. 300 3,000
Clayton Homes, Inc. 2,475 30,628
Crossman Communities, Inc. (a) 600 15,000
D.R. Horton, Inc. 1,750 27,891
Emcor Group, Inc. (a) 400 6,650
Engle Homes, Inc. 600 7,050
Granite Construction, Inc. 800 19,650
Jacobs Engineering Group, 900 35,606
Inc. (a)
Lennar Corp. 900 20,869
M.D.C. Holdings, Inc. 900 16,031
M/I Schottenstein Homes, Inc. 200 3,463
Modtech Holdings, Inc. 425 6,003
Monaco Coach Corp. (a) 300 9,338
NCI Building Systems, Inc. (a) 500 11,500
NVR, Inc. (a) 400 17,200
Oakwood Homes Corp. 900 14,513
Palm Harbor Homes, Inc. (a) 250 6,250
Robertson Ceco Corp. (a) 100 800
Ryland Group, Inc. 700 17,850
Schuler Homes, Inc. (a) 100 806
Skyline Corp. 100 2,925
Southern Energy Homes, Inc. 200 1,094
(a)
Standard Pacific Corp. 1,300 16,088
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
CONSTRUCTION & REAL ESTATE -
CONTINUED
CONSTRUCTION - CONTINUED
Toll Brothers, Inc. (a) 1,400 $ 27,475
U.S. Home Corp. (a) 700 24,150
Vistana, Inc. (a) 900 9,844
Walter Industries, Inc. (a) 1,600 19,600
Webb (Del E.) Corp. 800 18,000
432,842
ENGINEERING - 0.2%
Able Telcom Holding Corp. (a) 400 2,775
AmeriLink Corp. (a) 100 788
Apogee Enterprises, Inc. 800 7,000
Arguss Holdings, Inc. (a) 100 1,469
Comfort Systems USA, Inc. (a) 900 12,150
DSP Group, Inc. (a) 200 2,825
Harding Lawson Associates 100 591
Group, Inc. (a)
ICF Kaiser International, 400 375
Inc. (a)
IDM Environmental Corp. (a) 700 241
MasTec, Inc. (a) 400 10,050
NFO Worldwide, Inc. (a) 300 3,544
Primark Corp. (a) 94 1,921
Probusiness Services, Inc. (a) 450 14,963
Service Experts, Inc. (a) 700 8,794
Stone & Webster, Inc. 100 2,675
Sylvan Learning Systems (a) 950 31,588
URS Corp. (a) 800 15,700
VSI Holdings, Inc. (a) 100 550
Xceed, Inc. 600 5,700
123,699
REAL ESTATE - 0.5%
American Realty Trust, Inc. 100 1,675
Bluegreen Corp. (a) 800 5,150
BridgeStreet Accomodations, 100 456
Inc. (a)
Catellus Development Corp. (a) 3,100 44,756
CB Richard Ellis Services, 800 13,000
Inc. (a)
Fairfield Communities, Inc. 1,400 11,463
(a)
Forest City Enterprises, Inc. 400 8,600
Class A
Getty Realty Corp. 100 1,375
Grubb & Ellis Co. (a) 200 1,313
Homestead Village, Inc. (a) 400 1,375
Hovnanian Enterprises, Inc. 100 681
Class A (a)
Insignia Financial Group, 866 11,312
Inc. (a)
Kaiser Ventures, Inc. (a) 100 925
Lasalle Partners, Inc. (a) 700 21,831
LNR Property Corp. 300 5,513
Merry Land Properties, Inc. 65 358
(a)
Newhall Land & Farming Co. 1,000 23,313
(CA)
Omega Worldwide, Inc. (a) 66 297
Pierce Leahy Corp. (a) 200 4,950
Price Enterprises, Inc. 757 3,785
Rouse Co. (The) 2,200 51,425
SHARES VALUE (NOTE 1)
Silverleaf Resorts, Inc. (a) 100 $ 775
Stewart Enterprises, Inc. 2,200 33,000
Class A
Stratus Properties, Inc. (a) 100 350
Trammell Crow Co. (a) 1,000 15,500
Trendwest Resorts, Inc. (a) 800 12,800
Vornado Operating Co. (a) 81 557
Wellsford Real Properties, 225 2,138
Inc. (a)
278,673
REAL ESTATE INVESTMENT TRUSTS
- - 4.7%
Alexandria Real Estate 100 2,925
Equities, Inc.
AMB Property Corp. 2,700 56,700
American Health Properties, 300 5,719
Inc.
American Real Estate Partners 200 1,788
L.P. (a)
Amli Residential Properties 200 3,988
Trust (SBI)
Annaly Mortgage Management, 100 925
Inc.
Apartment Investment & 1,817 71,090
Management Co. Class A
Archstone Communities Trust 3,700 72,381
Arden Realty Group, Inc. 1,800 42,075
Associated Estates Realty 200 2,088
Corp.
AvalonBay Communities, Inc. 2,014 63,567
Banyan Strategic Realty Trust 100 500
(SBI)
Bedford Property Investors, 100 1,588
Inc.
Boston Properties, Inc. 1,800 58,163
Boykin Lodging Co. 300 3,956
Bradley Real Estate, Inc. 200 3,825
(SBI)
Brandywine Realty Trust 600 9,863
BRE Properties, Inc. Class A 800 19,400
Burnham Pacific Properties, 200 2,013
Inc.
Camden Property Trust (SBI) 1,651 40,450
Capital Automotive 900 10,688
Capstead Mortgage Corp. 2,200 10,863
CarrAmerica Realty Corp. 1,800 38,700
CBL & Associates Properties, 900 22,444
Inc.
CenterPoint Properties Trust 600 19,238
CenterTrust Retail 200 1,988
Properties, Inc.
Chateau Communities, Inc. 400 11,275
Chelsea GCA Realty, Inc. 200 6,113
Colonial Properties Trust 800 19,650
(SBI)
Commercial Net Lease Realty, 200 2,475
Inc.
Cornerstone Properties, Inc. 1,500 22,688
Cousins Properties, Inc. 500 14,469
Crescent Real Estate Equities 2,900 60,538
Co.
Criimi Mae, Inc. 300 881
Crown America Realty Trust 400 2,975
Developers Diversified Realty 2,400 38,100
Corp.
Duke Realty Investments, Inc. 2,600 56,713
Dynex Capital, Inc. 600 1,875
Eastgroup Properties, Inc. 200 3,500
Equity Inns, Inc. 1,000 9,438
Equity Office Properties Trust 5,562 143,222
Equity Residential Properties 2,989 122,549
Trust (SBI)
Essex Property Trust, Inc. 100 2,825
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
CONSTRUCTION & REAL ESTATE -
CONTINUED
REAL ESTATE INVESTMENT TRUSTS
- - CONTINUED
Federal Realty Investment 500 $ 11,031
Trust (SBI)
FelCor Lodging Trust, Inc. 1,905 45,006
First Industrial Realty 1,400 36,225
Trust, Inc.
First Union Real Estate 200 825
Equity & Mortgage Investments
Franchise Finance Corp. of 400 8,800
America
Gables Residential Trust (SBI) 1,100 25,438
General Growth Properties, 900 30,375
Inc.
Glenborough Realty Trust, 800 14,450
Inc.
Glimcher Realty Trust (SBI) 300 4,444
Great Lakes (REIT), Inc. 200 3,025
Health Care Property 400 11,750
Investors, Inc.
Health Care REIT, Inc. 300 6,956
Healthcare Realty Trust, Inc. 1,066 20,654
Highwoods Properties, Inc. 1,600 38,300
Home Properties of N.Y., Inc. 800 19,650
Hospitality Properties Trust 1,600 41,200
(SBI)
Host Marriott Corp. 3,800 41,088
HRPT Properties Trust 3,600 49,275
Impac Mortgage Holdings, Inc. 100 575
Imperial Credit Commercial 1,300 11,781
Mortgage Investment Corp.
Indymac Mortgage Holdings, 2,300 24,438
Inc.
Innkeepers USA Trust 300 3,113
IRT Property Co. 400 3,625
Irvine Apartments 1,000 32,875
Communities, Inc.
Jameson Inns, Inc. 100 850
JDN Realty Corp. 1,100 23,100
JP Realty, Inc. 200 3,700
Kilroy Realty Corp. 500 10,781
Kimco Realty Corp. 1,500 56,906
Koger Equity, Inc. 200 2,738
Konover Property Trust, Inc. 100 575
(a)
Kranzco Realty Trust 100 1,213
Lexington Corporate 100 1,175
Properties Trust
Liberty Property Trust (SBI) 2,100 45,938
LTC Properties, Inc. 200 2,500
Macerich Co. 1,500 36,375
Mack-Cali Realty Corp. 1,600 46,300
Manufactured Home 300 6,975
Communities, Inc.
Meditrust Corp. unit 3,734 45,742
Meridian Industrial Trust, 200 4,800
Inc.
MGI Properties, Inc. 100 2,806
Mid-America Apartment 800 17,800
Communities, Inc.
Mills Corp. 600 10,913
National Golf Properties, 100 2,513
Inc.
National Health Investors, 200 5,100
Inc.
Nationwide Health Properties, 1,100 19,800
Inc.
New Plan Excel Realty Trust 2,640 54,780
Ocwen Asset Investment Corp. 500 2,594
SHARES VALUE (NOTE 1)
Omega Healthcare Investors, 200 $ 4,625
Inc.
Pacific Gulf Properties, Inc. 200 4,025
Pan Pacific Retail 200 3,713
Properties, Inc.
Parkway Properties, Inc. 100 2,638
Patriot American Hospitality, 4,015 21,832
Inc. unit
Pennsylvania Real Estate 100 1,906
Investment Trust
Post Properties, Inc. 1,200 42,825
Prentiss Properties Trust 1,100 22,000
(SBI)
Prime Retail, Inc. 479 3,832
Prison Realty Corp. (a) 1,925 38,380
ProLogis Trust 3,300 68,475
Public Storage, Inc. 2,800 71,400
Realty Income Corp. 300 6,544
Reckson Associates Realty 1,200 25,500
Corp.
Redwood Trust, Inc. 200 2,825
Regency Realty Corp. 300 6,075
RFS Hotel Investors, Inc. 900 10,519
Saul Centers, Inc. 100 1,463
Shurgard Storage Centers, 400 9,900
Inc. Class A
Simon Property Group, Inc. 4,200 106,838
SL Green Realty Corp. 200 3,863
Smith (Charles E.) 200 5,875
Residential Realty, Inc.
Sovran Self Storage, Inc. 200 4,675
Spieker Properties, Inc. 1,700 60,775
Starwood Financial Trust 1,100 55,000
Starwood Hotels & Resorts 4,000 124,000
Worldwide, Inc.
Storage Trust Realty 200 4,300
Storage USA, Inc. 400 11,325
Summit Properties, Inc. 1,100 18,219
Sun Communities, Inc. 200 6,288
Sunstone Hotel Investors, 1,900 15,200
Inc.
Tanger Factory Outlet 100 1,994
Centers, Inc.
Taubman Centers, Inc. 400 4,975
Thornburg Mortgage Asset 200 1,888
Corp.
Town & Country Trust 200 2,988
Trinet Corporate Realty 500 12,594
Trust, Inc.
United Dominion Realty Trust, 3,600 35,550
Inc.
Universal Health Realty 100 1,975
Income Trust
Urban Shopping Centers, Inc. 200 6,000
Vornado Realty Trust 1,924 66,138
Walden Residential 900 15,019
Properties, Inc.
Washington (SBI) 400 6,575
Weeks Corp. 200 5,400
Weingarten Realty Investors 300 12,581
(SBI)
Western Investment Real 200 2,213
Estate Trust (SBI)
Westfield America, Inc. 1,000 17,625
Winston Hotels, Inc. 200 1,663
2,937,097
TOTAL CONSTRUCTION & REAL 4,536,846
ESTATE
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
DURABLES - 3.8%
AUTOS, TIRES, & ACCESSORIES -
1.5%
Aftermarket Technology Corp. 400 $ 2,113
(a)
Amcast Industrial Corp. 1,200 22,725
Arvin Industries, Inc. 500 18,125
Aviation Sales Co. (a) 600 27,188
Bandag, Inc. 800 25,350
Borg-Warner Automotive, Inc. 500 21,781
Breed Technologies, Inc. (a) 2,500 10,156
Casey's General Stores, Inc. 1,400 18,025
CLARCOR, Inc. 350 6,388
Colonels International, Inc. 200 900
(a)
Copart, Inc. (a) 1,000 17,500
Cross-Continent Auto 200 2,050
Retailers (a)
CSK Auto Corp. (a) 400 13,725
Discount Auto Parts, Inc. (a) 200 4,288
Donnelly Corp. Class A 100 1,250
Dura Automotive Systems, Inc. 200 5,688
Class A (a)
Durakon Industries, Inc. (a) 100 1,175
Excel Industries, Inc. 700 16,538
Federal Signal Corp. 1,800 42,188
Federal-Mogul Corp. 1,300 63,944
Forest Oil Corp. (a) 500 3,188
Gentex Corp. (a) 2,500 54,219
Getty Petroleum Marketing, 100 219
Inc. (a)
Hayes Lemmerz International, 600 15,600
Inc. (a)
IMPCO Technologies, Inc. (a) 100 1,250
Intermet Corp. 1,300 16,250
Jason, Inc. (a) 100 844
Johnstown America Industries, 200 3,375
Inc. (a)
Keystone Automotive 900 15,975
Industries, Inc. (a)
Kroll-O'Gara Co. (a) 700 21,613
Lear Corp. (a) 1,600 56,500
Lithia Motors, Inc. (a) 400 7,375
Mascotech, Inc. 900 13,613
Mercury Air Group, Inc. (a) 100 863
Meritor Automotive, Inc. 2,100 33,338
Miller Industries, Inc. (a) 600 3,225
Modine Manufacturing Co. 600 16,800
Monro Muffler Brake, Inc. 1,105 9,254
O'Reilly Automotive, Inc. (a) 600 26,363
OmniQuip International, Inc. 400 4,350
Oshkosh Truck Co. Class B 600 20,250
Republic Industries, Inc. (a) 10,200 124,950
Simpson Industries, Inc. 400 3,725
Sonic Automotive, Inc. (a) 800 12,900
Spartan Motors, Inc. 100 503
SPX Corp. 700 39,988
Standard Motor Products, Inc. 300 6,431
Standard Products Co. 700 10,500
Strattec Security Corp. (a) 100 3,150
SHARES VALUE (NOTE 1)
Superior Industries 600 $ 14,850
International, Inc.
Supreme Industries, Inc. 110 1,114
Class A
TBC Corp. (a) 300 1,706
Tower Automotive, Inc. (a) 900 16,763
Ugly Duckling Corp. (a) 200 1,038
United Auto Group, Inc. (a) 300 2,213
Wabash National Corp. 500 6,156
Walbro Corp. 100 900
World Fuel Services Corp. 150 1,556
Wynn's International, Inc. 250 4,625
898,629
CONSUMER DURABLES - 0.3%
Ballantyne of Omaha, Inc. 630 5,394
Blount International, Inc. 500 12,906
Class A
Blyth Industries, Inc. (a) 1,300 35,100
Department 56, Inc. (a) 700 23,231
Dupont Photomasks, Inc. (a) 300 11,775
Libbey, Inc. 700 20,869
Lifetime Hoan Corp. 100 1,013
Mikasa, Inc. 200 1,963
Mikohn Gaming Corp. (a) 100 363
Oneida Ltd. 150 2,100
Printrak International, Inc. 100 750
(a)
SAF T LOK, Inc. (a) 900 1,716
Samsonite Corp. (a) 243 1,443
Shuffle Master, Inc. (a) 800 5,700
Simpson Manufacturing Co. 500 17,719
Ltd. (a)
Sola International, Inc. (a) 700 7,525
149,567
CONSUMER ELECTRONICS - 0.4%
Boston Acoustics, Inc. 300 6,188
Fossil, Inc. (a) 450 14,175
General Motors Corp. Class H 2,400 113,250
(a)
Harman International 700 26,775
Industries, Inc.
Movado Group, Inc. 400 8,550
National Presto Industries, 400 14,800
Inc.
Odetics, Inc. Class B (a) 400 3,350
Parkervision, Inc. (a) 400 9,750
Recoton Corp. (a) 400 5,600
Royal Appliance Manufacturing 300 1,163
Co. (a)
Salton, Inc. (a) 600 17,888
SRS Labs, Inc. (a) 100 413
Sunbeam Corp. 1,500 8,719
U.S. Industries, Inc. 2,060 33,475
Universal Electronics, Inc. 600 7,275
(a)
271,371
HOME FURNISHINGS - 0.5%
Applied Power, Inc. Class A 1,055 25,452
Bassett Furniture Industries, 100 2,150
Inc.
Bombay Co., Inc. (The) (a) 200 813
Bush Industries, Inc. Class 100 1,050
A.
Ethan Allen Interiors, Inc. 400 18,000
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
DURABLES - CONTINUED
HOME FURNISHINGS - CONTINUED
Falcon Products, Inc. 100 $ 1,019
Furniture Brands 800 17,100
International, Inc. (a)
Garden Ridge Corp. (a) 200 1,188
Haverty Furniture Companies, 100 2,250
Inc.
Heilig-Meyers Co. 1,800 11,700
HON Industries, Inc. 1,000 23,750
Kimball International, Inc. 700 11,375
Class B
Knoll, Inc. (a) 700 13,388
La-Z-Boy, Inc. 1,300 24,213
Ladd Furniture, Inc. (a) 300 5,456
Leggett & Platt, Inc. 3,800 79,563
Linens'n Things, Inc. (a) 800 28,800
Maxim Group, Inc. (a) 200 3,625
Miller (Herman), Inc. 1,700 28,900
O'Sullivan Industries 200 2,100
Holdings, Inc. (a)
Restoration Hardware, Inc. 700 14,438
Rowe Furniture Corp. 100 1,319
Shelby Williams Industries, 100 1,125
Inc.
Virco Manufacturing Co. 110 1,939
Winsloew Furniture, Inc. (a) 300 8,250
328,963
TEXTILES & APPAREL - 1.1%
Active Apparel Group, Inc. (a) 700 2,319
Ashworth, Inc. (a) 600 2,831
Barry (R G) Corp. (a) 100 888
BEBE Stores, Inc. (a) 300 9,338
Bluefly, Inc. (a) 400 5,150
Burlington Industries, Inc. 2,000 12,375
(a)
Candies, Inc. (a) 700 2,625
Chemfab Corp. (a) 100 1,775
Chic By H I S, Inc. (a) 100 350
Collins & Aikman Corp. 700 3,544
Columbia Sportswear Co. (a) 800 9,600
Cone Mills Corp. (a) 300 1,463
Conso Products Co. (a) 100 700
Converse, Inc. (a) 200 738
Crown Crafts, Inc. 100 619
Culp, Inc. 100 631
Cutter & Buck, Inc. (a) 300 8,888
Deckers Outdoor Corp. (a) 100 294
Delta Woodside Industries 300 1,950
Dexter Corp. 900 24,975
Dixie Group, Inc. 100 756
Donna Karan International, 700 4,375
Inc. (a)
Dyersburg Corp. 100 206
Florsheim Group, Inc. (a) 100 588
G-III Apparel Group Ltd. (a) 1,200 2,850
Galey & Lord, Inc. (a) 100 469
Guilford Mills, Inc. 300 3,713
Haggar Corp. 600 6,131
Hartmarx Corp. (a) 500 2,156
SHARES VALUE (NOTE 1)
Interface, Inc. Class A 2,100 $ 20,016
Johnston Industries, Inc. (a) 100 281
Jones Apparel Group, Inc. (a) 2,100 58,669
Jos. A. Bank Clothiers, Inc. 100 775
(a)
K-Swiss, Inc. Class A 500 24,234
Kellwood Co. 1,000 25,563
Madden Steven Ltd. (a) 100 900
Maxwell Shoe, Inc. Class A (a) 500 6,500
McNaughton Apparel Group, 100 513
Inc. (a)
Mohawk Industries, Inc. (a) 1,100 35,750
Mossimo, Inc. (a) 800 6,750
Nautica Enterprises, Inc. (a) 1,100 16,500
Nine West Group, Inc. (a) 600 13,463
North Face, Inc. (a) 500 6,438
Oshkosh B'Gosh, Inc. Class A 800 15,200
Oxford Industries, Inc. 100 2,325
Pacific Sunwear of 300 8,550
California, Inc. (a)
Phillips-Van Heusen Corp. 400 2,425
Pillowtex Corp. 126 3,056
Pluma, Inc. (a) 100 88
Polo Ralph Lauren Corp. Class 1,300 25,919
A (a)
Polymer Group, Inc. (a) 200 2,013
Quaker Fabric Corp. (a) 850 3,400
Quiksilver, Inc. (a) 500 16,969
Rocky Shoes Boots, Inc. (a) 100 600
Shaw Industries, Inc. 2,780 60,986
Sport-Haley, Inc. (a) 100 988
St. John Knits, Inc. 500 13,344
Stride Rite Corp. 1,700 17,531
Superior Uniform Group, Inc. 100 1,325
Synthetic Industries, Inc. (a) 100 1,844
Tarrant Apparel Group (a) 500 19,313
Timberland Co. Class A (a) 200 12,075
U.S. Home & Garden, Inc. (a) 900 4,669
Unifi, Inc. 1,600 19,300
Unitog Co. 500 19,250
Vans, Inc. (a) 100 675
Warnaco Group, Inc. Class A 1,464 32,940
WestPoint Stevens, Inc. Class 1,600 40,800
A (a)
Wolverine World Wide, Inc. 1,000 9,938
Worldtex, Inc. (a) 100 225
664,397
TOTAL DURABLES 2,312,927
ENERGY - 2.4%
COAL - 0.0%
ArchCoal, Inc. 500 5,469
INDEPENDENT POWER - 0.0%
Trigen Energy Corp. 100 1,350
ENERGY SERVICES - 0.8%
Atwood Oceanics, Inc. (a) 500 8,406
Aztec Manufacturing Co. 100 825
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY - CONTINUED
ENERGY SERVICES - CONTINUED
Bayard Drilling Technologies, 1,323 $ 5,209
Inc. (a)
BJ Services Co. (a) 1,200 16,875
CAL Dive International, Inc. 400 5,750
(a)
Carbo Ceramics, Inc. 200 3,200
Daniel Industries, Inc. 200 2,125
Dawson Geophysical Co. (a) 200 1,350
Diamond Offshore Drilling, 2,800 57,925
Inc.
ENSCO International, Inc. 2,400 21,300
Global Industries Ltd. (a) 3,200 16,200
Global Marine, Inc. (a) 3,300 25,575
Input/Output, Inc. (a) 600 3,375
Kaneb Services, Inc. (a) 200 775
Key Energy Group, Inc. (a) 500 1,844
Layne Christensen Co. (a) 100 600
Lone Star Technologies, Inc. 300 3,881
(a)
Lufkin Industries, Inc. 100 1,550
Marine Drilling Companies, 700 4,463
Inc. (a)
Maverick Tube Corp. (a) 100 563
Nabors Industries, Inc. (a) 1,700 19,550
Newpark Resources, Inc. (a) 900 4,725
Noble Drilling Corp. (a) 2,400 29,700
Oceaneering International, 800 8,000
Inc. (a)
Offshore Logistics, Inc. (a) 1,300 11,334
Parker Drilling Co. (a) 2,800 7,000
Patterson Energy, Inc. (a) 500 1,406
Pool Energy Services Co. (a) 800 8,125
Powell Industries, Inc. (a) 100 938
Pride International, Inc. (a) 2,200 11,000
R&B Falcon Corp. (a) 5,140 28,270
RPC Energy Services, Inc. 400 2,450
SEACOR SMIT, Inc. (a) 600 23,625
Seitel, Inc. (a) 600 5,738
Smith International, Inc. 900 21,881
Superior Energy Services, 2,800 7,700
Inc. (a)
Tidewater, Inc. 900 16,931
TransCoastal Marine Services, 1,000 2,313
Inc. (a)
Transocean Offshore, Inc. 2,000 41,250
UTI Energy Corp. (a) 400 2,325
Varco International, Inc. (a) 900 6,975
Zapata Corp. 1,300 12,513
455,540
OIL & GAS - 1.6%
American International 100 100
Petroleum Corp. (a)
APCO Argentina, Inc. 100 1,600
Barrett Resources Corp. (a) 1,000 16,438
Basin Exploration, Inc. (a) 200 1,750
Belco Oil & Gas Corp. (a) 400 2,000
Bellwether Exploration Co. (a) 400 1,350
Benton Oil & Gas Co. (a) 1,100 3,369
SHARES VALUE (NOTE 1)
Berry Petroleum Co. Class A 300 $ 2,925
Bp Prudhoe Bay Royalty Trust 200 888
Brigham Exploration Co. (a) 100 331
Buckeye Partners LP 300 7,800
Cabot Oil & Gas Corp. Class A 800 8,750
Carrizo Oil & Gas, Inc. (a) 100 122
Castle Energy Corp. 300 4,838
Chesapeake Energy Corp. 1,598 1,099
Coho Energy, Inc. (a) 900 534
Comstock Resources, Inc. (a) 300 844
Conoco, Inc. Class A 4,400 89,375
Cooper Cameron Corp. (a) 1,000 23,125
Costilla Energy, Inc. (a) 100 313
Cross Timbers Oil Co. 2,150 11,422
Crown Central Petroleum Corp. 100 775
Class B (a)
Dailey International, Inc. (a) 100 38
Denbury Resources, Inc. (a) 400 1,565
Devon Energy Corp. 1,200 28,125
Eagle Geophysical, Inc. (a) 600 1,463
Edge Petroleum Corp. (a) 1,200 5,475
EEX Corp. (a) 1,400 8,488
Enron Oil & Gas Co. 4,000 66,000
Enterprise Products Partners 800 12,800
L P
Evergreen Resources, Inc. (a) 600 9,413
Forcenergy, Inc. (a) 600 525
Friede Goldman International, 700 7,481
Inc. (a)
Frontier Oil Corp. (a) 200 1,050
FX Energy, Inc. (a) 100 419
Giant Industries, Inc. 100 688
Gothic Energy Corp. (a) 300 150
Gulf Island Fabrication, Inc. 500 3,250
(a)
Hallwood Energy Partners, 100 363
L.P.
Harken Energy Corp. (a) 2,100 3,150
Holly Corp. 100 1,256
Houston Exploration Co. (a) 300 4,631
HS Resources, Inc. (a) 200 1,163
Inland Resources, Inc. (a) 100 197
IRI International Corp. (a) 900 2,813
KCS Energy, Inc. 700 919
Kelley Oil & Gas Corp. (a) 600 319
Key Production Co., Inc. (a) 100 644
Louis Dreyfus Natural Gas 800 9,550
Corp. (a)
Magnum Hunter Resources, Inc. 900 2,306
(a)
Mallon Resources Corp. (a) 500 3,156
Markwest Hydrocarbon, Inc. (a) 100 750
McMoRan Exploration Co. (a) 88 1,430
Meridian Resource Corp. (a) 200 413
Miller Exploration Co. (a) 600 1,838
Murphy Oil Corp. 1,300 44,444
National Energy Group, Inc. 900 113
(a)
National-Oilwell, Inc. (a) 800 7,100
Newfield Exploration Co. (a) 1,300 21,125
Noble Affiliates, Inc. 1,700 38,463
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
ENERGY - CONTINUED
OIL & GAS - CONTINUED
Nuevo Energy Co. (a) 600 $ 4,200
Ocean Energy, Inc. (a) 3,452 14,671
Panaco, Inc. (a) 300 309
Parallel Petroleum Corp. (a) 100 109
Patina Oil & Gas Corp. 200 575
Penn Virginia Corp. 100 1,844
PennzEnergy Co. 2,500 23,438
Pennzoil-Quaker State Co. 1,066 13,258
Petrofina SA warrants 8/5/03 400 3,550
(a)
Petroleum Development Corp. 100 294
(a)
Pioneer Natural Resources Co. 3,300 17,119
Plains Resources, Inc. (a) 200 1,850
Pogo Producing Co. 700 6,475
Range Resources Corp. 520 1,008
Remington Oil & Gas Corp. (a) 400 1,075
Resource America, Inc. Class A 900 9,731
Rutherford-Moran Oil Corp. (a) 800 2,550
Saba Petroleum Co. (a) 100 94
Santa Fe Energy Resources, 3,900 20,475
Inc. (a)
Seagull Energy Corp. (a) 900 4,275
Seven Seas Petroleum, Inc. (a) 1,400 5,600
Snyder Oil Corp. 1,600 16,700
St. Mary Land & Exploration 500 7,813
Co.
Stone Energy Corp. (a) 500 12,094
Swift Energy Co. (a) 500 3,000
TEPPCO Partners LP 600 13,650
Tesoro Petroleum Corp. (a) 1,400 11,200
Titan Exploration, Inc. (a) 300 1,397
Tom Brown, Inc. (a) 1,500 14,531
Tosco Corp. 3,500 72,406
TransMontaigne, Inc. (a) 300 3,263
TransTexas Gas Corp. (a) 800 850
Ultramar Diamond Shamrock 2,400 47,400
Corp.
UNIFAB International, Inc. (a) 300 2,044
Unit Corp. (a) 400 1,650
Valero Energy Corp. 1,400 24,588
Vastar Resources, Inc. 2,500 96,250
Veritas DGC, Inc. (a) 300 2,831
Vintage Petroleum, Inc. 800 3,550
WD-40 Co. 700 17,719
Weatherford International, 2,160 36,720
Inc. (a)
Western Gas Resources, Inc. 1,700 8,394
Williams Clayton Energy, Inc. 100 316
(a)
Wiser Oil Co. 100 169
XCL Ltd. (a) 500 656
1,004,512
TOTAL ENERGY 1,466,871
SHARES VALUE (NOTE 1)
FINANCE - 19.3%
BANKS - 5.7%
1st Source Corp. 231 $ 7,132
Advanta Corp. 1,100 12,856
Allegiant Bancorp, Inc. 360 3,510
Amcore Financial, Inc. 1,300 30,347
AmSouth Bancorp. 2,600 122,200
Area Bankshares Corp. 200 5,325
Associated Banc-Corp. 1,825 56,689
BancorpSouth, Inc. 500 8,406
BancWest Corp. 900 35,269
Bank of Commerce 600 11,325
Bank of Granite Corp. 125 3,438
BankAtlantic Bancorp, Inc. 375 2,789
(non-vtg.) Class A
Banknorth Group, Inc. 1,090 29,158
BOK Financial Corp. 624 14,352
Boston Private Financial 100 813
Holdings, Inc. (a)
Brenton Banks, Inc. 220 3,438
Carolina First Corp. 1,000 20,625
Cathay Bancorp, Inc. 100 3,900
CCB Financial Corp. 1,300 67,519
Centura Banks, Inc. 800 51,200
Century South Banks, Inc. 100 2,425
Chemical Financial Corp. 131 4,045
Chittenden Corp. 125 3,438
Citizens Banking Corp. 800 26,400
City Holding Co. 111 2,900
City National Corp. 1,100 35,475
CNB Bancshares, Inc. 1,250 50,234
Colonial Bancgroup, Inc. 3,800 47,025
Commerce Bancorp, Inc. 610 27,145
Commerce Bancshares, Inc. 1,828 74,491
Community First Bankshares, 1,800 35,100
Inc.
Community Trust Bancorp, Inc. 100 2,341
Compass Bancshares, Inc. 2,100 76,913
Corus Bankshares, Inc. 200 6,575
CPB, Inc. 100 1,725
Cullen Frost Bankers, Inc. 900 42,581
CVB Financial Corp. 165 3,259
F & M Bancorp., Inc. 110 3,644
F & M National Corp. 300 8,344
Fidelity National Corp. 500 3,938
Georgia
First American Corp. 2,819 114,346
First BanCorp P R 400 10,025
First Citizen Bancshares, 100 7,988
Inc.
First Commerce Bancshares 100 2,744
First Commonwealth Financial 590 12,722
Corp.
First Financial Bancorp Ohio 440 10,230
First Financial Bankshares, 110 3,548
Inc.
First Midwest Bankcorp, Inc. 1,176 42,998
(DE)
First Security Corp. 4,226 78,445
First Tennessee National 2,800 106,575
Corp.
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
BANKS - CONTINUED
First United Bancshares, Inc. 200 $ 3,275
First Virginia Banks, Inc. 1,300 61,994
First Western Bancorp 100 3,100
Firstmerit Corp. 3,092 75,561
FNB Corp. Pennsylvania 205 4,702
Fulton Financial Corp. 950 21,019
GBC Bancorp 700 14,875
Gold Banc Corp., Inc. 400 5,575
Grand Premier Financial, Inc. 110 1,238
Hamilton Bancorp, Inc. (a) 100 2,306
Hancock Holding Co. 100 4,550
Hibernia Corp. Class A 3,600 58,275
HUBCO, Inc. 1,293 42,427
Imperial Bancorp 1,404 25,623
Independent Bank Corp. 600 9,038
International Bancshares 100 4,650
Corp.
Irwin Financial Corp. 300 6,806
Jefferson Savings Bancorp, 100 1,394
Inc.
Keystone Financial, Inc. 1,600 57,800
M&T Bank Corp. 224 106,568
Mainstreet Financial Corp. 500 22,375
Marshall & Ilsley Corp. 2,700 151,200
Mason-Dixon Bancshares, Inc. 400 18,925
Mercantile Bankshares Corp. 2,100 76,519
Merchants New York Bancorp, 100 3,325
Inc.
MidAmerica Bancorp 103 2,826
Mississippi Valley 100 3,138
Bancshares, Inc.
National Bancorp of Alaska, 400 11,700
Inc.
National City Bancorp. 110 2,399
National City Bancshares, 105 3,176
Inc.
National Commmerce Bancorp 2,600 53,950
National Penn Bancshares, 125 3,250
Inc.
NBT Bancorp, Inc. 139 3,110
North Fork Bancorp, Inc. 3,357 73,854
Old National Bancorp 955 44,288
Omega Financial Corp. 100 3,100
One Valley Bancorp West 905 29,413
Virginia, Inc.
Oriental Financial Group, 133 3,732
Inc.
Pacific Bank NA 500 9,813
Pacific Capital Bancorp 200 4,600
Pacific Century Financial 2,000 43,875
Corp.
Park National Corp. 100 9,256
Peoples Heritage Financial 2,907 49,419
Group, Inc.
Pinnacle Banc Group, Inc. 100 2,706
Popular, Inc. 3,100 102,881
Premier Bancshares Corp. 600 12,000
Prime Bancshares, Inc. 300 4,463
Provident Financial Group, 1,300 50,700
Inc.
R&G Financial Corp. Class B 600 11,175
Ramapo Financial Corp. 1,000 10,688
Republic Bancorp, Inc. 1,650 22,688
SHARES VALUE (NOTE 1)
Republic Bancshares, Inc. (a) 900 $ 15,975
Riggs National Corp. 1,100 20,350
S & T Bancorp, Inc. 380 9,999
SierraWest Bancorp 200 6,100
Silicon Valley Bancshares (a) 900 17,269
Sky Financial Group, Inc. 1,278 33,548
Southwest Bancorp Texas, Inc. 1,500 21,094
Sterling Bancshares, Inc. 1,150 13,800
Susquehanna Bancshares, Inc. 900 16,256
Texas Regional Bancshares, 700 17,850
Inc. Class A (vtg.)
TF Financial Corp. 100 1,900
Triangle Bancorp, Inc. 300 4,800
Trust Co. of New Jersey 200 4,850
Trustco Bank Corp. 805 21,735
Trustmark Corp. 1,100 23,306
UAB Financial Corp. 305 13,382
UnionBanCal Corp. 5,600 176,050
United Bankshares, Inc. 1,170 28,226
United National Bancorp 110 2,516
US Trust Corp. 600 44,925
USBANCORP, Inc. Pennsylvania 600 10,575
UST Corp. 1,198 25,083
Valley National Bancorp 1,875 48,047
Vermont Financial Services 600 16,913
Corp.
WesBanco, Inc. 300 8,588
West Coast Bancorp 110 2,173
Westamerica Bancorp. 1,300 43,550
Western Bancorp 800 24,650
Whitney Holding Corp. 300 9,825
Wilmington Trust Corp. 900 51,019
Zions Bancorp 1,868 119,552
3,547,136
CREDIT & OTHER FINANCE - 1.8%
Aames Financial Corp. 2,200 4,538
Ace Cash Express, Inc. (a) 100 1,294
Actrade International Ltd. (a) 400 5,725
Allied Capital Corp. 1,820 32,078
AmeriCredit Corp. (a) 1,700 18,913
Ampal-American Israel Corp. 100 431
Class A (a)
AMRESCO, Inc. 1,700 16,097
Arcadia Financial Ltd. (a) 700 2,669
Cash America International, 700 8,838
Inc.
CIT Group, Inc. Class A 3,500 103,250
Coast Federal Litigation 300 2,044
Contingent Payment Rights
Trust rights 12/31/00 (a)
Concord EFS, Inc. (a) 2,000 63,875
Consumer Portfolio Services, 600 2,250
Inc. (a)
ContiFinancial Corp. (a) 1,100 3,850
Credit Acceptance Corp. (a) 900 5,400
Delta Financial Corp. (a) 200 1,163
Doral Financial Corp. 1,300 24,619
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
CREDIT & OTHER FINANCE -
CONTINUED
Equitable Companies (The), 4,900 $ 331,056
Inc.
Financial Federal Corp. (a) 500 9,844
Finova Group, Inc. 1,400 71,138
First Alliance Corp. (a) 700 2,538
First Charter Corp. 684 12,782
First Sierra Financial, Inc. 300 2,888
(a)
FIRSTPLUS Financial Group, 1,900 2,613
Inc. (a)
Franchise Mortgage Acceptance 1,300 10,888
Co. (a)
Greenpoint Financial Corp. 2,400 73,650
HealthCare Financial 400 10,450
Partners, Inc. (a)
Heller Financial, Inc. Class A 1,000 24,188
Home Gold Financial, Inc. (a) 100 145
IMC Mortgage Co. (a) 900 366
Imperial Credit Industries (a) 1,600 13,800
Investors Financial Services 300 17,400
Corp.
Life Financial Corp. (a) 300 1,163
Little Falls Bancorp, Inc. 100 1,969
Long Beach Financial Corp. (a) 1,500 14,250
Medallion Financial Corp. 100 1,550
Metris Companies, Inc. 622 26,746
New Century Financial Corp. 100 1,175
(a)
Old Kent Financial Corp. 2,480 108,810
PMC Capital, Inc. 100 894
Resource Bancshares Mortgage 1,010 14,140
Group, Inc.
Southern Pacific Funding 700 0
Corp. (a)
Student Loan Corp. 200 8,988
T&W Financial Corp. (a) 600 7,200
Triad Guaranty, Inc. (a) 100 1,850
UniCapital Corp. (a) 1,700 9,881
United Companies Financial 1,900 831
Corp.
WFS Financial, Inc. (a) 300 2,250
Willis Lease Finance Corp. (a) 100 1,588
WMF Group Ltd. (The) (a) 33 157
WMF Group Ltd. (The) rights 35 2
3/8/99 (a)
World Acceptance Corp. (a) 100 550
WSFS Financial Corp. 100 1,544
1,086,318
INSURANCE - 7.6%
20th Century Industries, Inc. 2,200 42,075
Acceptance Insurance Co., 200 3,425
Inc. (a)
Acmat Corp. Class A (a) 100 1,525
AFLAC, Inc. 5,800 255,925
Alfa Corp. 500 8,375
Allcity Insurance Co. (a) 300 2,100
Allmerica Financial Corp. 1,300 69,388
Ambac Financial Group, Inc. 1,300 72,800
American Annuity Group, Inc. 600 13,013
American Bankers Insurance 1,100 52,800
Group, Inc.
American Financial Group, 1,000 36,938
Inc.
American Heritage Life 400 8,800
Investment Corp.
SHARES VALUE (NOTE 1)
American Indemnity Financial 100 $ 1,050
Corp. (a)
American National Insurance 400 30,100
Co.
Amerin Corp. (a) 900 19,463
Amerus Life Holdings, Inc. 934 19,614
Argonaut Group, Inc. 600 14,888
ARM Financial Group, Inc. 700 10,894
Class A
Atlantic American Corp. (a) 400 1,675
Baldwin & Lyons, Inc. Class B 200 4,188
Berkley (W.R.) Corp. 900 25,763
Berkshire Hathaway, Inc. 33 2,345,879
Class A (a)
Blanch E.W. Holdings, Inc. 100 5,550
Capital Re Corp. 1,100 18,425
Capitol Transamerica Corp. 200 3,100
Centris Group, Inc. 200 2,275
Ceres Group, Inc. (a) 300 2,981
Chicago Title Corp. 500 17,531
ChoicePoint, Inc. (a) 400 20,800
Citizens, Inc. Class A (a) 100 544
CMAC Investments Corp. 700 28,919
CNA Financial Corp. (a) 3,700 125,569
CNA Surety Corp. 600 6,300
Commerce Group, Inc. 400 10,700
Core, Inc. (a) 400 2,900
Crawford & Co. Class B 700 7,963
Danielson Holding Corp. (a) 400 1,400
Delphi Financial Group, Inc. 518 24,832
Class A
Donegal Group, Inc. 133 1,712
EMC Insurance Group 200 2,200
Enhance Financial Services 1,100 26,056
Group, Inc.
Envoy Corp. (a) 500 24,250
Erie Indemnity Co. Class A 1,200 32,550
Everest Reinsurance Holdings, 1,200 39,825
Inc.
Executive Risk, Inc. 300 21,075
Farm Family Holdings, Inc. (a) 100 3,288
FBL Financial Group, Inc. 500 10,031
Class A
Fidelity National Financial, 352 7,040
Inc.
Financial Security Assurance 700 36,969
Holdings Ltd.
First American Financial 1,350 31,641
Corp.
First Health Group Corp. (a) 1,500 24,000
Foremost Corp. of America 400 7,700
FPIC Insurance Group, Inc. (a) 200 8,675
Fremont General Corp. 1,600 31,600
Frontier Insurance Group, 550 7,219
Inc.
Fund American Enterprises 70 9,205
Holdings, Inc.
Gainsco, Inc. 400 2,000
Gallagher (Arthur J.) & Co. 300 14,325
Guarantee Life Companies, 100 1,769
Inc.
Harleysville Group, Inc. 400 8,200
Hartford Life, Inc. Class A 700 40,600
HCC Insurance Holdings, Inc. 700 12,163
Healthcare Recoveries, Inc. 600 4,988
(a)
Healthplan Services Corp. 500 4,219
Highlands Insurance Group, 500 6,781
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
INSURANCE - CONTINUED
Hilb, Rogal & Hamilton Co. 100 $ 1,731
Horace Mann Educators Corp. 1,000 23,438
HSB Group, Inc. 650 24,050
Independence Holding Co. 200 2,550
INSpire Insurance Solutions, 600 9,750
Inc. (a)
Intercargo Corp. 200 2,275
Interstate National Dealer 100 988
Services, Inc. (a)
Investors Title Co. 100 2,250
LandAmerica Financial Group, 300 10,781
Inc.
Liberty Corp. (The) 592 29,859
Liberty Financial Companies, 600 13,463
Inc.
Life USA Holding, Inc. 400 4,575
Medical Assurance, Inc. 541 16,027
Merchants Group, Inc. 100 2,163
Mercury General Corp. 900 31,388
Meridian Insurance Group, 220 4,153
Inc.
MMI Companies, Inc. 200 2,975
Mobile America Corp. 200 813
MONY Group, Inc. 800 20,250
Motor Club of America (a) 200 2,825
NAC Re Corp. 400 21,625
National Security Group, Inc. 100 1,400
Nationwide Financial 700 31,806
Services, Inc. Class A
Navigators Group, Inc. (a) 200 2,975
Nymagic, Inc. 100 1,481
Ohio Casualty Corp. 700 28,263
Old Guard Group, Inc. 100 1,250
Old Republic International 2,600 48,913
Corp.
Orion Capital Corp. 600 19,838
Penn Treaty American Corp. (a) 500 12,094
Penn-America Group, Inc. 200 2,225
Penncorp Financial Group, 500 344
Inc.
Philadelphia Consolidated 200 4,300
Holding Corp. (a)
PICO Holdings, Inc. (a) 100 1,900
PMI Group, Inc. 700 30,188
Poe & Brown, Inc. 150 4,866
Point West Capital Corp. (a) 300 5,025
Presidential Life Corp. 700 12,469
Protective Life Corp. 1,515 52,268
PXRE Corp. 300 6,563
Reinsurance Group of America, 600 38,663
Inc.
Reliance Group Holdings, Inc. 3,000 30,938
Reliastar Financial Corp. 2,100 95,288
Risk Capital Holdings, Inc. 400 7,600
(a)
RLI Corp. 125 3,680
SCPIE Holding, Inc. 100 2,975
Selective Insurance Group, 1,000 18,219
Inc.
State Auto Financial Corp. 400 4,675
SHARES VALUE (NOTE 1)
Stewart Information Services 300 $ 9,994
Corp.
Symons International Group, 600 3,563
Inc. (a)
TIG Holdings, Inc. 1,200 19,200
Transatlantic Holdings, Inc. 800 59,750
Travelers Property Casualty 1,500 56,906
Corp. Class A
Trenwick Group, Inc. 500 14,500
UICI (a) 600 13,800
Unico American Corp. 200 2,175
United Fire & Casualty Co. 100 2,888
Unitrin, Inc. 900 58,838
Vesta Insurance Group Corp. 300 1,594
Wesco Financial Corp. 100 34,644
Zenith National Insurance 200 4,613
Corp.
4,721,148
SAVINGS & LOANS - 2.1%
Alliance Bancorp 100 1,975
Anchor Bancorp Wisconsin, 800 13,850
Inc.
Andover Bancorp, Inc. 400 12,000
Astoria Financial Corp. 1,590 72,047
Bank Plus Corp. (a) 2,100 9,188
Bank United Corp. Class A 900 35,550
BankUnited Financial Corp. 1,500 10,594
Class A (a)
Bay View Capital Corp. 1,000 19,938
Bayonne Bancshares, Inc. 800 13,100
BSB Bancorp, Inc. 100 2,688
CFS Bancorp, Inc. 900 9,225
Charter One Financial, Inc. 4,022 115,884
Commercial Federal Corp. 1,995 43,516
Commonwealth Bancorp, Inc. 300 4,500
Community Savings Bankshares, 700 9,013
Inc.
D & N Financial Corp. 100 2,450
Dime Bancorp, Inc. 2,100 51,975
Dime Community Bancorp, Inc. 1,148 25,328
Downey Financial Corp. 410 8,328
Eagle Bancshares, Inc. 400 8,500
Enterprise Federal Bancorp 200 8,850
First Federal Capital Corp. 200 2,750
First Indiana Corp. 120 2,333
First Republic Bank (a) 200 4,825
First Sentinel Bancorp, Inc. 2,891 24,574
First Washington Bancorp, 410 8,738
Inc.
Firstfed America Bancorp, 100 1,438
Inc.
FirstFed Financial Corp. (a) 600 10,163
Flagstar Bancorp, Inc. 1,000 28,000
Flushing Financial Corp. 750 11,438
Golden State Bancorp, Inc. 2,324 41,396
Harbor Florida Bancshares, 800 9,200
Inc.
Harris Financial, Inc. 500 6,188
Haven Bancorp, Inc. 400 5,650
HF Bancorp, Inc. (a) 700 12,075
Independence Community Bank 1,600 24,400
Corp.
Interwest Bancorp, Inc. 150 3,441
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINANCE - CONTINUED
SAVINGS & LOANS - CONTINUED
ISB Financial Corp. 600 $ 11,700
JSB Financial, Inc. 100 5,588
Klamath First Bancorp, Inc. 248 3,844
MAF Bancorp., Inc. 1,100 25,884
MetroWest Bank 100 600
Niagara Bancorp, Inc. 600 6,150
Northwest Bancorp, Inc. 300 2,756
Ocean Financial Corp. 900 13,388
Ocwen Financial Corp. (a) 900 7,200
People's Bank 1,800 50,400
Peoples Bancorp, Inc. 1,182 11,525
PFF Bancorp, Inc. (a) 1,000 17,500
Provident Bancshares Corp. 725 18,669
Queens County Bancorp, Inc. 900 26,156
Reliance BanCorp, Inc. 500 15,313
Republic Security Financial 2,858 25,543
Corp.
Roslyn Bancorp, Inc. 2,935 47,877
Seacoast Financial Services 1,277 12,531
Corp.
Security First Technologies 400 26,250
Corp. (a)
SFS Bancorp, Inc. 200 3,750
Sovereign Bancorp, Inc. 4,848 59,388
St. Paul Bancorp, Inc. 1,700 37,188
Staten Island Bancorp, Inc. 1,200 21,450
Sterling Financial Corp. (a) 100 1,738
TCF Financial Corp. 2,500 60,156
Timberland Bancorp, Inc. 500 5,906
Washington Federal, Inc. 2,057 46,283
Webster Financial Corp. 1,268 38,753
Westcorp, Inc. 300 2,475
Westernbank Puerto Rico 800 12,300
Wilshire Financial Services 300 113
Group, Inc. (a)
York Financial Corp. 105 1,578
1,295,060
SECURITIES INDUSTRY - 2.1%
Acacia Research Corp. (a) 500 1,875
Advest Group, Inc. (The) 300 5,963
Affiliated Managers Group, 500 13,000
Inc. (a)
Alleghany Corp. 100 18,100
Alliance Capital Management LP 3,800 94,288
American Capital Strategies 700 12,163
Ltd.
American Insured Mo. 100 800
Investors Series 86
American Insured Mo. 100 1,119
Investors Series 88
Ameritrade Holding Corp. 1,800 87,750
Class A (a)
Atalanta Sosnoff Capital 100 850
Corp.
Dain Rauscher Corp. 200 6,325
Donaldson Lufkin & Jenrette, 2,600 148,200
Inc.
Duff & Phelps Credit Rating 200 10,913
Co.
E Trade Group, Inc. (a) 2,600 119,600
Eaton Vance Corp. 900 17,719
Edwards (A.G.), Inc. 2,100 68,381
SHARES VALUE (NOTE 1)
Everen Capital Corp. 500 $ 10,750
Federated Investors, Inc. 1,600 30,700
Class B
Friedman, Billings, Ramsey 1,000 5,813
Group, Inc. Class A (a)
Gilman & Ciocia, Inc. (a) 200 2,925
Hambrecht & Quist Group (a) 800 21,300
Interstate/Johnson Lane, Inc. 300 9,469
Jefferies Group, Inc. 600 23,663
John Nuveen Co. Class A 400 15,800
JWGenesis Financial Corp. (a) 100 1,144
Leap Wireless International, 2,550 15,141
Inc. (a)
Legg Mason, Inc. 1,500 42,469
Macrovision Corp. (a) 400 13,800
Market Guide, Inc. (a) 400 4,300
MIPS Technologies, Inc. (a) 1,000 37,250
Morgan Keegan, Inc. 400 6,600
National Discount Brokers 800 20,750
Group, Inc. (a)
NVEST L.P. 500 11,969
PaineWebber Group, Inc. 3,000 112,125
Phoenix Investment Partners 600 4,463
Ltd.
PIMCO Advisors Holdings LP 1,267 36,426
Unit
Pioneer Group, Inc. 1,000 16,313
Price (T. Rowe) Associates, 2,500 77,031
Inc.
Raymond James Financial, Inc. 1,300 23,725
Security Capital Group, Inc. 1,800 22,050
Class B (a)
Siebert Financial Corp. 500 14,031
Southwest Securities Group, 605 17,432
Inc.
Stifel Financial Corp. 110 1,079
Sunburst Hospitality Corp. (a) 300 1,444
United Asset Management Corp. 2,000 45,375
Value Line, Inc. 100 3,813
Waddell & Reed Financial, 1,200 22,650
Inc. Class A
1,278,846
TOTAL FINANCE 11,928,508
HEALTH - 7.7%
DRUGS & PHARMACEUTICALS - 4.1%
Aastrom Biosciences, Inc. (a) 100 250
Abiomed, Inc. (a) 100 913
Advanced Polymer Systems, 200 950
Inc. (a)
Advanced Tissue Sciences, 600 1,650
Inc. (a)
Agouron Pharmaceuticals, Inc. 700 39,944
(a)
Alexion Pharmaceuticals, Inc. 700 8,138
(a)
Algos Pharmaceutical Corp. (a) 600 18,000
Alkermes, Inc. (a) 600 16,838
Allergan Specialty 400 3,900
Therapeutics, Inc. Class A
Alliance Pharmaceutical Corp. 500 1,250
(a)
Alpharma, Inc. Class A 800 30,300
Alteon, Inc. (a) 400 325
Amylin Pharmaceuticals, Inc. 500 438
(a)
Andrx Corp. (a) 400 27,150
Anesta Corp. (a) 500 9,906
Anika Therapeutics, Inc. (a) 1,100 5,294
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS -
CONTINUED
Aphton Corp. (a) 200 $ 2,875
Arqule, Inc. (a) 500 2,906
Atrix Laboratories, Inc. (a) 100 1,438
AVI BioPharma, Inc. (a) 100 325
Aviron (a) 600 12,863
AXYS Pharmaceuticals, Inc. (a) 1,535 7,099
Barr Laboratories, Inc. (a) 300 11,100
Bio-Technology General Corp. 1,000 6,219
(a)
BioCryst Pharmaceuticals, 100 900
Inc. (a)
Biogen, Inc. (a) 1,600 153,800
Biomatrix, Inc. (a) 300 20,850
BioReliance Corp. (a) 100 675
Biosite Diagnostics, Inc. (a) 500 6,000
BioSource International, Inc. 100 269
(a)
BioTime, Inc. (a) 500 8,063
Biotransplant, Inc. (a) 100 238
Bone Care International, Inc. 100 1,125
(a)
Cadus Pharmaceutical Corp. (a) 100 172
Calypte Biomedical Corp. 800 2,525
Cambrex Corp. 800 19,150
Carter-Wallace, Inc. 600 9,825
Cel-Sci Corp. (a) 100 200
Celgene Corp. (a) 300 3,881
Cell Genesys, Inc. (a) 1,600 9,800
Cell Therapeutics, Inc. (a) 100 400
Cellegy Pharmaceuticals, Inc. 200 700
(a)
Centocor, Inc. (a) 1,400 58,188
Cephalon, Inc. (a) 500 3,844
Cerus Corp. (a) 100 2,663
Chattem, Inc. (a) 400 12,050
Chirex, Inc. (a) 600 12,525
Chiron Corp. (a) 3,700 77,931
Collagen Corp. 100 1,119
Collagenex Pharmaceuticals, 500 5,000
Inc. (a)
Columbia Laboratories, Inc. 400 2,000
(a)
Copley Pharmaceutical, Inc. 800 8,000
(a)
COR Therapeutics, Inc. (a) 800 7,850
Corixa Corp. (a) 100 913
Coulter Pharmaceutical, Inc. 400 8,150
(a)
Creative Biomolecules, Inc. 500 1,344
(a)
Cubist Pharmaceuticals, Inc. 100 381
(a)
Curative Health Services, 500 5,625
Inc. (a)
CV Therapeutics, Inc. (a) 100 613
Cypros Pharmaceutical Corp. 200 550
Cytotherapeutics, Inc. (a) 200 269
Cytyc Corp. (a) 200 3,625
Depotech Corp. (a) 200 563
Diacrin, Inc. (a) 100 538
Diagnostic Products Corp. 700 18,550
Diatide, Inc. (a) 100 563
Dura Pharmaceuticals, Inc. (a) 1,300 18,281
SHARES VALUE (NOTE 1)
Duramed (a) 1,400 $ 8,575
Emisphere Technologies, Inc. 100 1,300
(a)
EntreMed, Inc. (a) 200 3,738
Enzo Biochem, Inc. 310 3,410
Enzon, Inc. (a) 1,300 18,038
Epitope, Inc. (a) 100 638
Epix Medical, Inc. (a) 100 975
Ergo Science Corp. (a) 100 100
Forest Laboratories, Inc. (a) 1,600 79,100
Fuisz Technologies Ltd. (a) 900 6,525
GelTex Pharmaceuticals, Inc. 700 12,031
(a)
GeneMedicine, Inc. (a) 100 275
Genentech, Inc. (special) (a) 3,100 247,419
Genome Therapeutics Corp. (a) 200 625
Gensia Sicor, Inc. (a) 1,100 5,088
Genzyme Corp.:
(General Division) 1,700 76,500
(Molecular Oncology) (a) 183 698
Genzyme Transgenics Corp. (a) 100 491
Geron Corp. (a) 700 7,394
Gilead Sciences, Inc. (a) 700 28,875
Gliatech, Inc. (a) 500 13,500
Guilford Pharmaceuticals, 500 6,344
Inc. (a)
Hauser, Inc. (a) 100 350
Hemispherx Biopharma, Inc. (a) 1,100 6,256
Herbalife International, Inc. 466 6,233
Class A
Heska Corp. (a) 600 2,550
Hollis-Eden Pharmaceutcals, 400 8,550
Inc. (a)
Human Genome Sciences, Inc. 400 11,950
(a)
Hyseq, Inc. (a) 100 444
ICN Pharmaceuticals, Inc. 1,400 30,625
ICOS Corp. (a) 1,100 26,950
IDEC Pharmaceuticals Corp. (a) 300 12,994
Idexx Laboratories, Inc. (a) 700 15,663
IGEN International, Inc. (a) 300 9,075
Ilex Oncology, Inc. (a) 100 1,125
Imclone Systems, Inc. (a) 400 4,300
Immucor, Inc. (a) 100 900
Immune Response Corp. (a) 800 6,700
Immunex Corp. (a) 900 127,350
Incyte Pharmaceuticals, Inc. 700 19,644
(a)
Inhale Therapeutic Systems, 600 16,500
Inc. (a)
Integrated Process Equipment 200 2,250
Corp. (a)
Interferon Sciences, Inc. (a) 20 23
Interneuron Pharmaceuticals, 600 2,438
Inc. (a)
Irwin Naturals/4Health, Inc. 800 3,600
(a)
Isis Pharmaceuticals Co. (a) 800 9,650
IVAX Corp. (a) 2,100 30,975
Jones Pharma, Inc. 400 11,250
K V Pharmaceutical Co. Class 150 2,981
A (a)
Kendle International, Inc. (a) 600 14,475
King Pharmaceuticals, Inc. (a) 1,000 24,125
Kos Pharmaceuticals, Inc. (a) 600 3,563
KRUG International Corp. (a) 100 144
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
DRUGS & PHARMACEUTICALS -
CONTINUED
LeukoSite, Inc. (a) 100 $ 1,150
Ligand Pharmaceuticals, Inc. 900 8,831
Class B (a)
Liposome, Inc. (a) 600 8,213
Lynx Therapeutics, Inc. (a) 700 7,700
MacroChem Corp. (a) 600 6,038
Magainin Pharmaceuticals, 200 813
Inc. (a)
Martek Biosciences (a) 200 1,275
Matritech, Inc. (a) 100 134
Maxim Pharmaceuticals, Inc. 100 1,244
(a)
Medarex, Inc. (a) 100 338
Medco Research, Inc. (a) 100 2,294
Medicis Pharmaceutical Corp. 600 22,650
Class A (a)
Medimmune, Inc. (a) 1,100 60,500
Megabios Corp. (a) 100 525
Meridian Diagnostics, Inc. 100 638
MGI Pharma, Inc. (a) 800 7,150
Microcide Pharmaceuticals, 600 2,550
Inc. (a)
Microvision, Inc. (a) 700 10,063
Millennium Pharmaceuticals, 1,000 31,063
Inc. (a)
Molecular Biosystems, Inc. (a) 200 463
Mylan Laboratories, Inc. 2,668 72,870
Myriad Genetics, Inc. (a) 300 2,813
NaPro BioTherapeutics, Inc. 200 400
(a)
Nature's Sunshine Products, 300 3,675
Inc.
NBTY, Inc. (a) 1,400 8,400
Neopath, Inc. (a) 800 4,200
NeoRX Corp. (a) 900 1,406
Neose Technologies, Inc. (a) 100 1,175
NeoTherapeutics, Inc. (a) 300 2,419
Neurogen Corp. (a) 600 7,125
NeXstar Pharmeceuticals, Inc. 400 5,525
(a)
North American Vaccine, Inc. 400 3,050
(a)
Northfield Laboratories, Inc. 500 6,188
(a)
Novavax, Inc. (a) 100 256
Noven Pharmaceuticals, Inc. 300 1,613
(a)
NPS Pharmaceuticals, Inc. (a) 100 738
Nutraceutical International 600 3,150
Corp.
ONYX Pharmaceuticals, Inc. (a) 700 4,944
Organogenesis, Inc. (a) 431 5,926
Ortec International, Inc. (a) 100 944
OSI Pharmaceuticals, Inc. (a) 200 738
OXiGENE, Inc. (a) 800 7,050
PAREXEL International Corp. 800 16,650
(a)
PathoGenesis Corp. (a) 500 22,906
Pharmaceutical Product 700 24,325
Development, Inc. (a)
Pharmacopeia, Inc. (a) 100 950
Pharmacyclics, Inc. (a) 600 11,400
PharmaPrint, Inc. (a) 900 10,913
Polymedica Industries, Inc. 100 800
(a)
Protein Design Labs, Inc. (a) 300 4,950
SHARES VALUE (NOTE 1)
Pure World, Inc. 440 $ 2,118
Quintiles Transnational Corp. 1,800 77,625
(a)
Regeneron Pharmaceuticals, 400 3,100
Inc. (a)
Rexall Sundown, Inc. (a) 1,200 17,175
Ribozyme Pharmaceuticals, 100 438
Inc. (a)
Roberts Pharmaceutical Corp. 800 18,100
(a)
Sangstat Medical Corp. (a) 600 13,425
Schein Pharmaceutical, Inc. 1,100 14,575
(a)
Scios, Inc. (a) 1,500 13,875
Sepracor, Inc. (a) 600 74,850
Sequus Pharmaceuticals, Inc. 900 18,394
(a)
Serologicals Corp. (a) 750 13,406
Shaman Pharmaceuticals, Inc. 100 34
(a)
SonoSight, Inc. (a) 100 1,181
Spectrx, Inc. (a) 100 513
Spire Corp. (a) 100 403
Sugen, Inc. (a) 800 13,950
SuperGen, Inc. (a) 100 975
Synaptic Pharmaceutical Corp. 500 7,813
(a)
Technical Chemicals & 100 134
Products, Inc. (a)
Texas Biotechnology Corp. (a) 300 1,275
Theragenics Corp. (a) 400 2,725
Thermotrex Corp. (a) 200 1,200
Titan Pharmaceuticals, Inc. 100 425
(a)
Transkaryotic Therapies, Inc. 700 20,475
(a)
Triangle Pharmaceuticals, 900 11,700
Inc. (a)
Trimeris, Inc. (a) 800 12,450
Twinlab Corp. (a) 500 4,266
U.S. Bioscience, Inc. (a) 300 3,019
Unimed Pharmaceuticals, Inc. 100 463
(a)
V.I. Technologies, Inc. (a) 800 9,000
Ventana Medical Systems, Inc. 600 10,425
(a)
Vertex Pharmaceuticals, Inc. 700 16,450
(a)
Vical, Inc. (a) 500 6,375
ViroPharma, Inc. (a) 800 6,650
Vivus, Inc. (a) 500 1,297
Watson Pharmaceuticals, Inc. 2,039 98,509
(a)
Weider Nutrition 100 656
International, Inc. Class A
Zonagen, Inc. (a) 300 8,288
2,553,914
MEDICAL EQUIPMENT & SUPPLIES
- - 2.1%
Acuson Corp. (a) 400 6,000
ADAC Laboratories (a) 600 10,725
Advanced Neuromodulation 100 797
Systems, Inc. (a)
Aksys Ltd. (a) 100 550
ALARIS Medical, Inc. (a) 800 3,400
Allied Healthcare Products, 100 156
Inc. (a)
American Dental Technologies, 100 425
Inc. (a)
AmeriSource Health Corp. 600 44,775
Class A (a)
Angeion Corp. (a) 400 287
Aradigm Corp. (a) 100 1,000
Arrow International, Inc. 300 7,369
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES
- - CONTINUED
Arthrocare Corp. (a) 100 $ 1,400
ATS Medical, Inc. (a) 100 744
Autonomous Technologies Corp. 100 675
(a)
AVECOR Cardiovascular, Inc. 600 7,125
(a)
Bacou USA, Inc. (a) 200 4,188
Ballard Medical Products 1,200 28,725
Baxter International, Inc. 100 9
rights 12/31/07 (a)
Bergen Brunswig Corp. Class A 2,000 48,875
Bindley Western Industries, 233 6,131
Inc.
Bio-Plexus, Inc. (a) 100 250
Bio-Rad Laboratories, Inc. 100 2,000
Class A (a)
Bionx Implants, Inc. (a) 100 588
Bolle, Inc. (a) 100 319
Bradley Pharmaceuticals, Inc. 1,200 1,538
Class A (a)
Cardiac Pathways Corp. (a) 100 300
Cardima, Inc. (a) 900 2,138
Cardiogenesis Corp. (a) 100 875
CardioThoracic Systems, Inc. 1,200 9,300
(a)
Chad Therapeutics, Inc. (a) 100 125
Closure Medical Corp. (a) 500 14,563
CNS., Inc. (a) 300 994
Coherent, Inc. (a) 400 5,975
Cohesion Technologies, Inc. 100 513
(a)
Colorado Medtech, Inc. (a) 1,000 13,125
Computer Motion, Inc. (a) 400 4,200
Conceptus, Inc. (a) 100 119
CONMED Corp. (a) 700 21,613
Cooper Companies, Inc. (a) 200 2,925
Cyberonics, Inc. (a) 300 2,644
Cygnus, Inc. (a) 300 1,725
Datascope Corp. 600 15,675
Dentsply International, Inc. 1,600 40,800
Diametrics Medical, Inc. (a) 200 894
Dianon Systems, Inc. (a) 100 756
Digene Corp. (a) 100 650
Dionex Corp. (a) 800 29,500
E-Z-EM, Inc. Class A 100 675
Eclipse Surgical Technologies 500 5,625
(a)
EMPI, Inc. (a) 100 2,425
Endocardial Solutions, Inc. 100 931
(a)
Endosonics Corp. (a) 400 3,300
Fischer Imaging Corp. (a) 100 188
General Surgical Innovations, 200 788
Inc. (a)
Graham-Field Health Products, 400 1,050
Inc. (a)
Guardian Technologies 1,400 1,925
International, Inc. (a)
Haemonetics Corp. (a) 1,000 16,688
Heartport, Inc. (a) 500 3,313
Henry Schein, Inc. (a) 1,200 30,750
Hillenbrand Industries, Inc. 1,200 50,250
SHARES VALUE (NOTE 1)
Hologic, Inc. (a) 600 $ 6,038
Horizon Medical Products, 600 3,000
Inc. (a)
HumaScan, Inc. (a) 100 28
I-Stat Corp. (a) 100 1,075
ICU Medical, Inc. (a) 100 2,100
Imatron, Inc. (a) 2,400 3,300
Innovasive Devices, Inc. (a) 1,700 7,013
Intermagnetics General Corp. 102 555
Interpore International (a) 200 906
Invacare Corp. 1,100 26,125
Iridex Corp. (a) 100 431
Kensey Nash Corp. (a) 100 1,025
KeraVision, Inc. (a) 800 9,700
Laserscope, Inc. (a) 100 175
Lifecore Biomedical, Inc. (a) 100 975
Lunar Corp. (a) 100 756
Maxxim Medical, Inc. (a) 200 4,550
Mentor Corp. 700 10,763
Merit Medical Systems, Inc. 100 550
(a)
Micro Therapeutics, Inc. (a) 100 800
Milestone Scientific, Inc. (a) 200 450
MiniMed, Inc. (a) 400 34,100
Minntech Corp. 100 1,038
Miravant Medical Technologies 300 2,981
(a)
NCS HealthCare, Inc. (a) 800 11,350
Neoprobe Corp. (a) 400 500
Nitinol Medical Technologies, 100 463
Inc. (a)
Novametrix Medical Systems, 200 850
Inc. (a)
Novoste Corp. (a) 600 15,375
Oakley, Inc. (a) 1,200 9,975
Ocular Sciences, Inc. (a) 500 12,250
OEC Medical Systems, Inc. 100 2,494
Omnicare, Inc. 1,700 40,694
Optical Sensors, Inc. (a) 100 138
Osteotech, Inc. (a) 400 21,650
Owens & Minor, Inc. 1,100 14,025
Palomar Medical Technologies, 1,300 1,056
Inc. (a)
Patterson Dental Co. (a) 850 34,425
Perclose, Inc. (a) 500 21,125
Perrigo Co. (a) 2,800 23,450
PharmaNetics, Inc. (a) 100 425
PharMerica, Inc. (a) 3,300 18,563
Photoelectron Corp. (a) 100 406
PLC Systems, Inc. (a) 600 2,400
Possis Medical, Inc. (a) 100 1,088
Premier Laser Systems, Inc. 400 1,025
Class A (a)
Priority Healthcare Corp. (a) 300 11,681
Priority Healthcare Corp. 104 4,050
Class A (a)
Protocol Systems, Inc. (a) 100 775
PSS World Medical, Inc. (a) 1,275 14,503
Q-Medical, Inc. (a) 100 288
Quigley Corp. (a) 600 3,075
Radiance Medical Systems, 100 425
Inc. (a)
Resmed, Inc. (a) 600 18,600
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
MEDICAL EQUIPMENT & SUPPLIES
- - CONTINUED
Resound Corp. (a) 200 $ 675
Respironics, Inc. (a) 792 10,148
Sabratek Corp. (a) 600 11,325
Schick Technologies, Inc. (a) 1,100 5,225
SeaMED Corp. (a) 1,100 8,525
Sonus Pharmaceuticals, Inc. 700 5,163
(a)
Spacelabs Medical, Inc. (a) 800 14,200
Staar Surgical Co. (a) 100 944
Steris Corp. (a) 1,300 42,738
Stryker Corp. 1,900 89,775
Sunrise Medical, Inc. (a) 200 1,450
Sybron International, Inc. (a) 2,800 68,775
Techne Corp. (a) 900 22,500
Teleflex, Inc. 900 32,006
Thermedics, Inc. (a) 500 3,500
Thermo Cardiosystems, Inc. (a) 500 4,719
Thoratec Laboratories Corp. 200 1,513
(a)
Trex Medical Corp. (a) 500 3,813
Uromed Corp. (a) 120 184
Utah Medical Products, Inc. 100 663
(a)
Vallen Corp. (a) 100 1,875
Vasomedical, Inc. (a) 400 550
Vidamed, Inc. (a) 100 200
VIMRX Pharmaceuticals, Inc. 500 625
(a)
Vista Medical Technologies, 100 263
Inc. (a)
VISX, Inc. (a) 600 37,050
Vital Signs, Inc. 100 1,769
Vivid Technologies, Inc. (a) 400 1,575
Voxel (a) 100 -
Wesley Jessen Visioncare, 600 15,600
Inc. (a)
Xomed Surgical Products, Inc. 550 20,006
(a)
Zila, Inc. (a) 1,800 7,369
Zoll Medical Corp. (a) 100 1,163
1,286,812
MEDICAL FACILITIES MANAGEMENT
- - 1.5%
Advance Paradigm, Inc. (a) 100 3,606
Alternative Living Services, 600 12,300
Inc. (a)
American Healthcorp, Inc. (a) 100 1,125
American HomePatient, Inc. (a) 500 1,219
American Medical Securities 200 2,900
Group, Inc. (a)
Amsurg Corp. Class A (a) 9 79
Apria Healthcare Group, Inc. 800 7,150
(a)
ARV Assisted Living, Inc. (a) 100 463
Beverly Enterprises, Inc. (a) 2,700 14,006
Cambridge Heart, Inc. (a) 1,200 9,750
Carematrix Corp. (a) 300 6,638
Centennial Healthcare Corp. 500 7,219
(a)
Chronimed, Inc. (a) 100 875
Clintrials Research, Inc. (a) 200 1,150
Cohr, Inc. (a) 400 2,550
SHARES VALUE (NOTE 1)
Compdent Corp. (a) 500 $ 6,375
Comprehensive Care Corp. (a) 300 300
Concentra Managed Care, Inc. 1,600 17,000
(a)
Continucare Corp. (a) 100 106
Covance, Inc. (a) 1,300 35,831
Coventry Health Care, Inc. (a) 700 7,503
Cryolife, Inc. (a) 100 1,050
Diagnostic Health Services, 600 1,106
Inc. (a)
Emeritus Corp. (a) 100 1,094
Express Scripts, Inc. Class A 600 38,738
(a)
First Commonwealth, Inc. 200 2,500
Foundation Health Systems, 2,200 17,600
Inc. Class A (a)
Genesis Health Ventures, Inc. 500 2,750
(a)
Global Unilabs Clinical 100 -
Trials Ltd. (a)
Hanger Orthopedic Group, Inc. 200 3,038
(a)
Health Management Associates, 4,900 63,394
Inc. Class A (a)
Health Power, Inc. (a) 400 1,200
Health Risk Management, Inc. 100 944
(a)
Home Health Corp. of America, 100 25
Inc. (a)
Hooper Holmes, Inc. 400 6,000
I-Link Corp. (a) 600 1,763
IMPATH, Inc. (a) 400 10,075
Integrated Health Services, 1,700 10,094
Inc.
LabOne, Inc. 100 1,119
Laboratory Corp. of America 1,900 3,444
Holdings (a)
Laser Vision Centers, Inc. (a) 600 16,725
Lincare Holdings, Inc. (a) 1,100 39,188
LTC Healthcare, Inc. (a) 20 51
Mariner Post-Acute Network, 700 1,531
Inc. (a)
Matria Healthcare, Inc. (a) 300 938
Maxicare Health Plans, Inc. 1,300 6,825
(a)
Medical Resources, Inc. (a) 133 299
MedicalControl, Inc. (a) 400 3,200
Medquist, Inc. (a) 600 20,513
Mid-Atlantic Medical 700 5,469
Services, Inc. (a)
Monarch Dental Corp. (a) 400 1,275
Neurocrine Biosciences, Inc. 800 4,450
(a)
NovaCare, Inc. (a) 1,000 2,125
Omega Health Systems, Inc. (a) 100 356
Orthodontic Centers of 1,300 19,500
America, Inc. (a)
Orthologic Corp. (a) 200 688
Oxford Health Plans, Inc. (a) 1,500 28,406
PacifiCare Health Systems, 900 65,025
Inc. Class B (a)
Paracelsus Healthcare Corp. 300 431
(a)
Pediatric Services of 100 250
America, Inc. (a)
Pediatrix Medical Group (a) 500 15,438
PHP Healthcare Corp. (a) 200 15
Phycor, Inc. (a) 900 4,894
PhyMatrix Corp. (a) 900 1,631
Physician Reliance Network, 700 6,344
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HEALTH - CONTINUED
MEDICAL FACILITIES MANAGEMENT
- - CONTINUED
PMR Corp. (a) 300 $ 2,081
Province Healthcare Co. (a) 500 7,594
Psychemedics Corp. 300 1,425
Quest Diagnostics, Inc. (a) 1,300 27,788
Quorum Health Group, Inc. (a) 2,100 19,425
Raytel Medical Corp. (a) 100 484
RehabCare Group, Inc. (a) 300 4,856
Renal Care Group, Inc. (a) 1,300 25,756
Renex Corp. (a) 100 438
Res-Care, Inc. (a) 750 17,813
Response Oncology, Inc. (a) 200 600
RightCHOICE Managed Care, 200 2,375
Inc. Class A (a)
Safeguard Health Enterprises, 200 575
Inc. (a)
Sheridan Healthcare, Inc. (a) 100 813
SIBIA Neurosciences, Inc. (a) 100 388
Sierra Health Services, Inc. 500 7,188
(a)
Specialty Care Network, Inc. 100 91
(a)
Sterigenics International, 100 1,788
Inc. (a)
Sun Healthcare Group, Inc. (a) 3,950 5,431
Sunrise Assisted Living, Inc. 500 19,313
(a)
Syncor International Corp. (a) 100 2,763
Total Renal Care Holdings, 2,200 19,525
Inc. (a)
TransWorld Healthcare, Inc. 100 419
(a)
Trigon Healthcare, Inc. (a) 1,100 38,569
UniHolding Corp. 100 300
United Payors & United 450 11,138
Providers, Inc. (a)
United Wisconsin Services, 200 1,400
Inc.
Universal Health Services, 600 24,375
Inc. Class B (a)
Urocor, Inc. (a) 100 550
Urologix, Inc. (a) 600 2,175
Vencor, Inc. (a) 2,400 4,500
Ventas, Inc. 2,000 16,125
Wellpoint Health Networks, 1,400 110,425
Inc. (a)
928,132
TOTAL HEALTH 4,768,858
HOLDING COMPANIES - 0.1%
Leucadia National Corp. (a) 1,500 44,719
Triarc Companies, Inc. Class 500 7,938
A (a)
52,657
INDUSTRIAL MACHINERY &
EQUIPMENT - 2.8%
ELECTRICAL EQUIPMENT - 1.1%
Acme Electric Corp. (a) 100 463
ACTV, Inc. (a) 2,800 22,400
ADFlex Solutions, Inc. (a) 300 1,500
Adtran, Inc. (a) 900 18,450
Advanced Lighting 900 6,525
Technologies, Inc. (a)
Allen Telecom, Inc. (a) 400 1,925
SHARES VALUE (NOTE 1)
American Power Conversion 2,000 $ 71,750
Corp. (a)
American Superconductor Corp. 600 6,188
(a)
AMETEK, Inc. 700 11,856
Andrea Electronics Corp. (a) 100 775
Anicom, Inc. (a) 900 6,244
Anixter International, Inc. 1,500 18,844
(a)
ANTEC Corp. (a) 800 22,300
Avid Technology, Inc. (a) 800 23,450
Baldor Electric Co. 1,366 26,125
BMC Industries, Inc. 500 2,438
California Microwave, Inc. (a) 900 9,113
Cherry Corp. Class A (a) 100 1,388
Cymer, Inc. (a) 400 9,150
Detection Systems, Inc. (a) 100 900
Electric Fuel Corp. (a) 100 338
Electro Rent Corp. (a) 300 3,038
Energy Conversion Devices, 100 1,119
Inc.
Excel Technology, Inc. (a) 400 4,075
Faroudja, Inc. (a) 600 1,313
Franklin Electric Co., Inc. 200 12,400
Genlyte Group, Inc. (a) 400 7,238
Glenayre Technologies, Inc. 900 3,178
(a)
Globecomm Systems, Inc. (a) 400 2,700
Holophane Corp. (a) 600 13,800
Hubbell, Inc. Class B 1,900 70,775
Hughes Supply, Inc. 600 12,113
IEC Electronics Corp. (a) 100 394
Juno Lighting, Inc. 200 4,113
L-3 Communications Holdings, 500 21,438
Inc. (a)
Littelfuse, Inc. (a) 1,100 18,769
LSI, Industries, Inc. 100 1,850
MagneTek, Inc. (a) 1,300 14,138
MultiMedia Access Corp. (a) 1,300 6,175
Oak Industries, Inc. (a) 700 22,181
Omnipoint Corp. (a) 1,500 17,438
Ortel Corp. (a) 500 4,000
Owosso Corp. 100 509
Pinnacle Systems (a) 400 14,325
Pittway Corp. Class A 400 9,925
Powerwave Technologies, Inc. 600 14,100
(a)
Rofin Sinar Technologies, 400 3,250
Inc. (a)
Roper Industries, Inc. 400 8,850
Satcon Technology Corp. (a) 100 525
Sensormatic Electronics Corp. 2,300 24,150
(a)
SLI, Inc. (a) 450 10,069
Smith (A.O.) Corp. Class B 600 12,788
Spectrian Corp. (a) 600 7,013
STM Wireless, Inc. Class A (a) 100 525
Technitrol, Inc. 200 4,650
Telular Corp. (a) 75 166
ThermoSpectra Corp. (a) 100 1,094
Thomas Industries, Inc. 150 2,559
Transcrypt International, 400 1,269
Inc. (a)
Unique Mobility, Inc. (a) 100 463
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
ELECTRICAL EQUIPMENT -
CONTINUED
ViaSat, Inc. (a) 400 $ 3,900
Vicor Corp. (a) 600 6,675
VWR Scientific Products Corp. 900 20,869
(a)
Woodhead Industries, Inc. 100 1,138
Woodward Governor Co. 100 2,163
Zenith Electronics Corp. (a) 900 323
Zoltek Companies, Inc. (a) 300 2,578
658,243
INDUSTRIAL MACHINERY &
EQUIPMENT - 1.3%
Ag-Chem Equipment, Inc. (a) 100 1,075
AGCO Corp. 1,700 11,156
Alamo Group, Inc. 100 975
Allied Products Corp. 100 494
Alyn Corp. (a) 100 306
Applied Industrial 300 3,825
Technologies, Inc.
Astec Industries, Inc. (a) 600 16,500
Asyst Technologies, Inc. (a) 600 12,900
Autologic Information 100 456
International, Inc. (a)
Baldwin Technology Co., Inc. 100 363
Class A (a)
BOLDER Technologies Corp. (a) 100 1,000
Bridgeport Machines, Inc. (a) 100 550
Brooks Automation, Inc. (a) 100 2,188
Brown & Sharpe Manufacturing 100 725
Co. Class A (a)
Cascade Corp. 100 1,100
Chart Industries, Inc. 150 1,125
CMI Corp. Class A 200 1,525
Coltec Industries, Inc. (a) 2,000 36,000
Columbus McKinnon Corp. 200 4,100
Commercial Intertech Corp. 400 4,900
Control Devices, Inc. 125 1,984
CTB International Corp. (a) 100 650
CUNO, Inc. (a) 800 12,050
Detroit Diesel Corp. (a) 300 6,469
Donaldson Co., Inc. 1,300 23,481
DT Industries, Inc. 400 4,400
EMCORE Corp. (a) 100 1,875
ESCO Electronics Corp. (trust 100 1,031
receipt) (a)
Essef Corp. (a) 121 1,966
Exide Corp. 1,000 15,000
Farr Co. (a) 150 1,388
Fedders Corp. 600 3,300
Flow International Corp. (a) 800 7,250
Flowserve Corp. 1,100 18,219
FSI International, Inc. (a) 300 2,925
Gardner Denver Machinery, 750 9,563
Inc. (a)
Gasonics International Corp. 100 1,038
(a)
Gehl Co. (a) 100 1,738
SHARES VALUE (NOTE 1)
Gencor Industries, Inc. 100 $ 631
Gleason Corp. 500 8,219
Global Industrial 800 7,150
Technologies, Inc. (a)
Gorman-Rupp Co. 100 1,575
Graco, Inc. 350 7,613
Gradall Industries, Inc. (a) 100 1,350
Greenbrier Companies, Inc. 100 1,000
Hardinge, Inc. 150 2,166
IDEX Corp. 400 9,500
Industrial Distribution 100 669
Group, Inc. (a)
Ionics, Inc. (a) 400 11,150
JLG Industries, Inc. 1,100 15,469
JLK Direct Distrution, Inc. 300 3,169
Class A (a)
Kaman Corp. Class A 800 10,800
Kaydon Corp. 900 27,450
Kennametal, Inc. 1,100 22,894
Key Technology, Inc. (a) 100 663
Kuhlman Corp. 500 19,188
Lancer Corp. (a) 100 988
Lawson Products, Inc. 100 2,106
Lincoln Electric Holdings, 900 18,450
Inc.
Lindsay Manufacturing Co. 150 2,381
Manitowoc Co., Inc. 600 22,125
Mark IV Industries, Inc. 2,300 34,644
Mattson Technology, Inc. (a) 200 1,650
Middleby Corp. (a) 100 363
Mitcham Industries, Inc. (a) 400 1,325
MSC Industrial Direct, Inc. 1,100 19,663
(a)
MTS Systems Corp. 200 2,513
NN Ball & Roller, Inc. 200 1,125
Nordson Corp. 600 35,700
Osmonics, Inc. (a) 200 1,650
PEC Israel Economic Corp. (a) 200 5,863
Plasma-Therm, Inc. (a) 100 353
Presstek, Inc. (a) 500 4,125
PRI Automation, Inc. 300 9,000
Recovery Engineering, Inc. (a) 300 3,263
Regal-Beloit Corp. 300 5,850
Robotic Vision Systems, Inc. 300 909
(a)
Scotsman Industries, Inc. 300 5,700
Semitool, Inc. (a) 100 725
Specialty Equipment 200 5,288
Companies, Inc. (a)
Speizman Industries, Inc. (a) 100 488
Stewart & Stevenson Services, 1,100 9,213
Inc.
Strategic Distribution, Inc. 200 450
(a)
Tennant Co. 400 14,025
Terex Corp. (a) 400 10,250
Thermo Fibertek, Inc. (a) 500 3,875
Thermo Sentron, Inc. (a) 100 1,113
Tokheim Corp. (a) 100 725
Toro Co. 700 20,913
Turbochef, Inc. (a) 200 2,063
UCAR International, Inc. (a) 1,500 23,813
Ultratech Stepper, Inc. (a) 900 14,203
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
INDUSTRIAL MACHINERY &
EQUIPMENT - CONTINUED
United States Filter Corp. (a) 3,580 $ 87,934
UNOVA, Inc. (a) 1,600 23,200
Valmont Industries, Inc. 900 10,603
Varlen Corp. 187 3,927
Veeco Instruments, Inc. (a) 200 7,650
Waterlink, Inc. (a) 100 444
Watkins-Johnson Co. 600 13,575
Watts Industries, Inc. Class A 400 5,575
Western Power & Equipment 100 300
Corp. (a)
YieldUP International Corp. 1,300 2,113
(a)
808,457
POLLUTION CONTROL - 0.4%
Allied Waste Industries, Inc. 3,625 70,688
(a)
Aquagenix, Inc. (a) 100 81
BHA Group Holdings, Inc. 110 1,128
Class A
Calgon Carbon Corp. 900 5,344
CET Environmental Services, 100 175
Inc. (a)
Dames & Moore Group 200 1,975
Earth Sciences, Inc. (a) 800 725
Flanders Corp. (a) 200 688
GTS Duratek, Inc. (a) 100 625
Insituform Technologies, Inc. 1,100 16,363
Class A (a)
IT Group, Inc. (The) (a) 316 4,148
Medical/Waste, Inc. (a) 100 513
Met-Pro Corp. 100 1,150
NSC Corp. (a) 28 29
Ogden Corp. 1,500 36,656
Recycling Industries, Inc. (a) 200 44
Republic Services, Inc. Class 1,500 26,156
A (a)
Safety-Kleen Corp. (a) 1,550 21,603
Stericycle, Inc. (a) 600 7,613
Superior Services, Inc. (a) 1,300 26,122
Tetra Tech, Inc. (a) 1,106 21,083
TETRA Technologies, Inc. (a) 100 663
ThermoRetec Corp. 100 231
U.S. Liquids, Inc. 100 2,269
Waste Industries, Inc. (a) 800 10,800
WasteMasters, Inc. (a) 1,200 300
257,172
TOTAL INDUSTRIAL MACHINERY & 1,723,872
EQUIPMENT
MEDIA & LEISURE - 8.1%
BROADCASTING - 3.3%
@ Entertainment, Inc. (a) 1,300 13,081
Adelphia Communications Corp. 700 39,463
Class A (a)
Advanced Communication 900 11,644
Systems, Inc. (a)
SHARES VALUE (NOTE 1)
American Tower Corp. Class A 2,120 $ 56,843
(a)
Ascent Entertainment Group, 500 5,438
Inc. (a)
BHC Communications, Inc. 500 57,250
Class A
Cablevision Systems Corp. 2,338 151,970
Class A (a)
Capstar Broadcasting Corp. 500 10,094
Class A (a)
CD Radio, Inc. (a) 500 10,875
Century Communications Corp. 1,500 52,031
Class A. (a)
Chancellor Media Corp. (a) 2,200 96,250
Chris-Craft Industries, Inc. 1,012 42,884
Citadel Communications Corp. 600 13,650
(a)
Cox Communications, Inc. 5,800 410,350
Class A (a)
Cox Radio, Inc. Class A (a) 500 22,063
Crown Castle International 1,600 27,200
Corp. (a)
Cumulus Media, Inc. (a) 900 10,575
E.W. Scripps Co. Class A 1,500 61,500
EchoStar Communications Corp. 500 24,500
Class A (New) (a)
Emmis Broadcasting Class A (a) 500 23,156
Gaylord Entertainment Co. 500 12,469
Granite Broadcasting Corp. (a) 600 4,050
Hearst-Argyle Television, 600 15,825
Inc. (a)
Heftel Broadcasting Corp. 900 37,125
Class A (a)
HighwayMaster Communications, 400 775
Inc. (a)
Hungarian Broadcasting Corp. 100 348
(a)
Infinity Broadcasting Corp. 3,000 71,250
Class A (a)
Jacor Communications, Inc. 1,200 83,700
Class A (a)
Jones Intercable, Inc. Class 1,000 40,500
A (a)
LodgeNet Entertainment Corp. 100 775
(a)
Metromedia International 900 5,231
Group, Inc. (a)
Nielsen Media Research, Inc. 1,200 23,550
(a)
NTL, Inc. (a) 1,400 108,763
PanAmSat Corp. (a) 600 21,525
Paxson Communications Corp. 1,800 14,850
(a)
Pegasus Communications Corp. 600 14,625
(a)
Sinclair Broadcast Group, 1,400 20,738
Inc. Class A (a)
SpeedUs.com (a) 100 231
TCA Cable TV, Inc. 1,500 66,188
TCI Satellite Entertainment,
Inc.:
Class A (a) 900 731
Class B (a) 100 119
Tel-Com Wireless Cable TV 500 4,391
Corp. (a)
U.S. Satellite Broadcasting 2,500 40,313
Co., Inc. Class A (a)
United International 1,100 50,600
Holdings, Inc. Class A (a)
United Television, Inc. 100 10,250
United Video Satellite Group, 800 23,050
Inc. Class A (a)
Univision Communications, 1,700 69,275
Inc. Class A (a)
USA Networks, Inc. (a) 2,663 105,854
ValueVision International, 1,400 12,163
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
BROADCASTING - CONTINUED
Westwood One, Inc. (a) 1,000 $ 24,375
Young Broadcasting, Inc. 500 20,250
Class A (a)
2,044,706
ENTERTAINMENT - 1.2%
Alliance Gaming Corp. (a) 200 1,138
AMC Entertainment, Inc. (a) 200 3,475
American Classic Voyages Co. 800 18,600
(a)
American Coin Merchandising, 400 2,250
Inc. (a)
Ameristar Casinos, Inc. (a) 100 306
AMF Bowling, Inc. (a) 800 3,650
Bally Total Fitness Holding 300 6,750
Corp. (a)
Carmike Cinemas, Inc. Class A 800 12,600
(a)
Cedar Fair LP (depository 500 12,469
unit)
Dover Downs Entertainment, 400 5,650
Inc.
Family Golf Centers, Inc. (a) 750 4,477
Florida Panthers Holdings, 500 5,094
Inc. Class A (a)
Fox Entertainment Group, Inc. 1,700 44,200
(a)
Hollywood Park, Inc. (a) 400 3,550
Image Entertainment, Inc. (a) 800 6,200
International Speedway Corp. 500 22,750
Class A
K-Tel International, Inc. (a) 500 4,969
Kushner Locke Co. (a) 1,100 10,244
Lakes Gaming, Inc. (a) 150 1,369
Metro-Goldwyn-Mayer, Inc. (a) 2,900 30,269
MGM Grand, Inc. (a) 1,561 58,928
Multimedia Games, Inc. (a) 300 1,575
On Command Corp. (a) 400 4,000
Park Place Entertainment 5,900 44,250
Corp. (a)
Pixar (a) 900 37,013
Platinum Entertainment, Inc. 500 3,406
(a)
Powerhouse Technologies, Inc. 100 1,444
(a)
Premier Parks, Inc. (a) 1,500 43,688
Quintel Communications, Inc. 200 338
(a)
Rentrak Corp. (a) 600 1,800
Scientific Games Holdings 700 12,206
Corp. (a)
SFX Entertainment, Inc. Class 700 42,788
A (a)
Speedway Motorsports, Inc. (a) 800 28,550
Spelling Entertainment Group, 1,300 9,344
Inc. (a)
Sports Club Co., Inc. (The) 100 506
(a)
Tele-Communications, Inc. 8,200 227,038
(TCI Ventures Group) Series
A (a)
Vail Resorts, Inc. (a) 1,100 18,975
Visual Data Corp. (a) 600 7,725
Zomax Optical Media, Inc. (a) 600 7,819
751,403
LEISURE DURABLES & TOYS - 0.7%
Adams Golf, Inc. (a) 1,300 5,119
Aldila, Inc. (a) 900 1,575
SHARES VALUE (NOTE 1)
Arctic Cat, Inc. 600 $ 4,650
Authentic Fitness Corp. 800 12,600
Callaway Golf Co. 2,100 22,838
Champion Enterprises, Inc. (a) 700 13,781
Coachmen Industries, Inc. 1,100 22,275
Coastcast Corp. (a) 300 2,438
Coleman, Inc. (a) 800 7,500
Excelsior Henderson 100 950
Motorcycle Manufacturing Co.
(a)
Harley-Davidson, Inc. 3,500 202,344
Huffy Corp. 700 9,756
JAKKS Pacific, Inc. (a) 800 13,350
K2, Inc. 500 4,406
Knickerbocker (L. L.) Co. (a) 200 125
Marvel Enterprises, Inc. (a) 400 2,225
National R.V. Holdings, Inc. 200 4,413
(a)
Play By Play Toys & 200 1,013
Novelties, Inc. (a)
Polaris Industries, Inc. 1,000 28,250
PTI Holding, Inc. (a) 100 288
Rawlings Sporting Goods, Inc. 500 6,125
(a)
RockShox, Inc. (a) 100 194
Russ Berrie & Co., Inc. 300 7,425
Silicon Gaming, Inc. (a) 800 600
Steinway Musical Instruments, 100 2,269
Inc. (a)
T-HQ, Inc. (a) 300 5,963
Thor Industries, Inc. 150 3,713
Toymax International, Inc. (a) 100 725
West Marine, Inc. (a) 500 4,719
Winnebago Industries, Inc. 500 6,875
398,504
LODGING & GAMING - 0.6%
Anchor Gaming (a) 200 8,013
Aztar Corp. (a) 700 3,413
Boyd Gaming Corp. (a) 900 3,713
Buckhead America Corp. (a) 100 525
Championship Auto Racng 400 11,150
Teams, Inc. (a)
Choice Hotels International, 2,100 28,613
Inc. (a)
Circus Circus Enterprises, 2,500 42,813
Inc. (a)
Crescent Operating, Inc. (a) 100 353
Extended Stay America, Inc. 1,400 12,250
(a)
Gtech Holdings Corp. (a) 1,300 29,413
Hammons (John Q) Hotels, Inc. 100 456
Class A (a)
Hospitality Worldwide 100 488
Services, Inc. (a)
International Game Technology 2,000 38,000
Corp.
Lodgian, Inc. (a) 1,300 5,281
Marcus Corp. 350 4,550
MeriStar Hospitality Corp. 1,254 22,337
Penn National Gaming, Inc. (a) 200 1,950
Penske Motorsports, Inc. (a) 500 16,063
Players International, Inc. 500 3,219
(a)
Primadonna Resorts, Inc. (a) 700 8,488
Prime Hospitality Corp. (a) 1,660 17,015
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
LODGING & GAMING - CONTINUED
Promus Hotel Corp. (a) 2,300 $ 80,931
Red Roof Inns, Inc. (a) 400 5,425
ShoLodge, Inc. (a) 100 563
Station Casinos, Inc. (a) 700 7,000
Suburban Lodges of America, 300 2,325
Inc. (a)
Sunterra Corp. (a) 1,000 12,250
Supertel Hospitality, Inc. (a) 100 925
Trump Hotels & Casino 900 3,600
Resorts, Inc. (a)
U.S. Franchise Systems, Inc. 400 4,950
Class A (a)
WMS Industries, Inc. 1,300 10,238
386,310
PUBLISHING - 1.2%
American Media, Inc. Class A 300 1,931
(a)
Applied Graphics 760 6,840
Technologies, Inc. (a)
Banta Corp. 1,000 21,313
Belo (A.H.) Corp. Class A 2,100 38,063
Central Newspapers, Inc. 1,200 42,000
Class A
CMP Media, Inc. Class A (a) 600 18,000
Franklin Covey Co. (a) 1,000 11,938
Gibson Greetings, Inc. (a) 1,000 8,281
Golden Books Family 400 188
Entertainment, Inc. (a)
Harte Hanks Communications, 1,500 38,813
Inc.
Hollinger International, Inc. 3,500 43,313
Class A
Houghton Mifflin Co. 900 38,700
IDG Books Worldwide, Inc. (a) 700 10,631
Journal Register Co. (a) 700 9,188
Lee Enterprises, Inc. 600 16,575
McClatchy Co., The Class A 600 19,200
Media General, Inc. Class A 400 20,000
Nelson Thomas, Inc. 200 2,563
Pacific Chemical, Inc. (a) 100 2
Penton Media, Inc. 200 3,738
Playboy Enterprises, Inc. 200 5,350
Class B (a)
PRIMEDIA, Inc. (a) 2,300 30,619
Pulitzer Publishing Co. 600 47,925
R.H. Donnelley Corp. 1,100 16,500
Reader's Digest Association, 2,400 81,600
Inc. Class A (non-vtg.)
Scholastic Corp. (a) 600 29,550
Standex International Corp. 100 2,369
Washington Post Co. Class B 200 109,975
Wiley (JOHN) & Sons, Inc. 800 35,650
Class A
World Color Press, Inc. (a) 500 12,406
Ziff-Davis, Inc. (a) 2,700 45,394
768,615
RESTAURANTS - 1.1%
Applebee's International, 500 12,969
Inc.
ARK Restaurants Corp. (a) 100 1,000
SHARES VALUE (NOTE 1)
Au Bon Pain, Inc. Class A (a) 100 $ 613
Avado Brands, Inc. 1,700 11,581
Back Bay Restaurant Group, 100 988
Inc. (a)
Benihana, Inc. Class A (a) 100 1,163
Big Buck Brew & Steakhouse, 100 275
Inc. (a)
Bob Evans Farms, Inc. 1,500 32,344
Boston Chicken, Inc. (a) 1,100 726
Brinker International, Inc. 1,200 34,725
(a)
Buffets, Inc. (a) 1,600 16,100
CBRL Group, Inc. 1,900 35,625
CEC Entertainment, Inc. (a) 400 12,000
Chart House Enterprises, Inc. 100 463
(a)
Cheesecake Factory, Inc. (a) 800 16,400
CKE Restaurants, Inc. 1,243 33,017
Consolidated Products, Inc. 281 4,759
(a)
Cooker Restaurant Corp. 60 398
Dave & Busters, Inc. (a) 500 9,844
Einstein/Noah Bagel Corp. (a) 500 719
Elxsi Corp. (a) 100 1,000
Fine Host Corp. (a) 700 208
Foodmaker, Inc. (a) 1,400 32,200
Friendly Ice Cream Corp. (a) 1,000 6,625
Frisch's Restaurants, Inc. 100 1,050
Garden Fresh Restaurant Corp. 100 1,531
(a)
Host Marriott Services Corp. 1,300 9,100
IHOP Corp. (a) 100 4,088
Il Fornaio America Corp. (a) 100 825
J. Alexanders Corp. (a) 100 400
Koo Koo Roo Enterprises, Inc. 1,600 825
(a)
Landry's Seafood Restaurants, 1,200 8,175
Inc. (a)
Lone Star Steakhouse Saloon 600 5,438
(a)
Luby's, Inc. 1,400 19,863
Max & Ermas Restaurants, Inc. 100 700
(a)
Morrison Health Care, Inc. 100 1,956
Morton's Restaurant Group, 100 1,788
Inc. (a)
New World Coffee & Bagels, 300 291
Inc. (a)
NPC International, Inc. (a) 300 4,313
O Charleys, Inc. (a) 150 2,213
Outback Steakhouse, Inc. (a) 1,200 52,650
Papa John's International, 800 34,600
Inc. (a)
Piccadilly Cafeterias, Inc. 100 1,100
PJ America, Inc. (a) 500 9,813
Planet Hollywood 1,400 3,413
International, Inc. Class A
(a)
Rainforest Cafe, Inc. (a) 450 2,447
Rare Hospitality 200 2,775
International, Inc. (a)
Rock Bottom Restaurants, Inc. 900 7,875
(a)
Ruby Tuesday, Inc. 1,200 22,350
Ryan's Family Steak Houses, 1,400 15,925
Inc. (a)
Santa Barbara Restaurant 100 400
Group, Inc. (a)
Sbarro, Inc. 700 17,675
Schlotzskys, Inc. (a) 400 4,775
Shells Seafood Restaurants, 100 425
Inc. (a)
Sodexho Marriott Services, 1,200 28,050
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
MEDIA & LEISURE - CONTINUED
RESTAURANTS - CONTINUED
Sonic Corp. (a) 750 $ 18,000
Star Buffet, Inc. (a) 100 438
Starbucks Corp. (a) 1,800 95,175
Taco Cabana, Inc. (a) 1,400 12,163
Total Entertainment 100 425
Restaurant Corp.
Unique Casual Restaurants, 100 506
Inc. (a)
Uno Restaurant Corp. (a) 100 813
VICORP Restaurants, Inc. (a) 100 1,563
661,654
TOTAL MEDIA & LEISURE 5,011,192
NONDURABLES - 2.8%
AGRICULTURE - 0.1%
Andersons, Inc. 100 1,231
Delta & Pine Land Co. 666 21,562
Michael Foods, Inc. 900 16,650
Northland Cranberries, Inc. 800 6,025
Class A
Tejon Ranch Co. 100 1,750
47,218
BEVERAGES - 0.2%
Beringer Wine Estates 600 24,188
Holdings, Inc. Class B (a)
Boston Beer Co., Inc. Class A 200 1,550
(a)
Buenos Aires Embotelladora SA 26 -
sponsored ADR Class B (a)
Canandaigua Brands, Inc. 500 26,688
Class A (a)
Celestial Seasonings, Inc. (a) 500 14,438
Coca-Cola Bottling Co. 100 5,600
Consolidated
Golden State Vinters, Inc. 500 6,063
Class B (a)
M & F Worldwide Corp. (a) 300 2,738
Mondavi (Robert) Corp. Class 400 13,750
A (a)
National Beverage Corp. (a) 200 1,725
Pepsi-Cola Puerto Rico 100 500
Bottling Co. Class B
Whitman Corp. 2,100 39,900
137,140
FOODS - 1.7%
Agribrands International, 400 12,400
Inc.
American Italian Pasta Co. 700 17,850
Class A (a)
Aurora Foods, Inc. (a) 1,700 27,519
Balance Bar Co. (a) 600 5,738
Ben & Jerry's Homemade, Inc. 100 2,250
Class A (a)
Bridgford Foods Corp. 110 1,210
Broughton Foods Co. 700 11,463
Chiquita Brands 2,400 20,700
International, Inc.
Chock Full-O-Nuts Corp. (a) 100 544
Corn Products International, 1,300 30,550
Inc.
SHARES VALUE (NOTE 1)
Darling International, Inc. 100 $ 250
(a)
Dean Foods Co. 1,200 43,725
Dole Food, Inc. 1,700 53,550
Dreyer's Grand Ice Cream, 1,000 12,438
Inc.
Earthgrains Co. 1,100 27,019
Flowers Industries, Inc. 2,000 48,750
Fresh Foods, Inc. (a) 38 171
Gardenburger, Inc. (a) 700 7,700
Golden Enterprises 100 363
Horizon Organic Holding Corp. 700 10,850
(a)
Hormel Foods Corp. 1,300 46,800
IBP, Inc. 2,200 49,500
Imperial Sugar Co. 262 1,883
International Home Foods, 2,100 32,813
Inc. (a)
International Multifoods 700 15,138
Corp.
Interstate Bakeries Corp. 2,100 50,400
J & J Snack Food Corp. (a) 100 2,113
Keebler Foods Co. (a) 1,700 66,300
Lancaster Colony Corp. 1,350 37,125
Lance, Inc. 1,200 19,800
McCormick & Co., Inc. 2,000 57,250
(non-vtg.)
Midwest Grain Products, Inc. 100 1,325
(a)
Nabisco Holdings Corp. Class A 1,400 62,125
Opta Food Ingredients, Inc. 100 288
(a)
Orange-Co., Inc. (a) 100 556
Pilgrims Pride Corp. 400 7,625
Ralcorp Holdings, Inc. (a) 1,150 20,484
Riviana Foods, Inc. 200 4,300
Sanderson Farms, Inc. 200 2,950
Smithfield Foods, Inc. (a) 1,200 31,537
Smucker (J.M.) Co. 300 7,125
Suiza Foods Corp. (a) 947 35,039
Tasty Baking Co. 100 1,300
TCBY Enterprises, Inc. 300 2,025
Thorn Apple Valley, Inc. (a) 400 700
Tootsie Roll Industries, Inc. 706 32,476
Tyson Foods, Inc. 4,720 96,760
Universal Foods Corp. 1,700 38,569
Vlasic Foods International, 1,000 12,188
Inc. (a)
WLR Foods, Inc. (a) 100 881
Worthington Foods, Inc. 600 7,800
1,080,215
HOUSEHOLD PRODUCTS - 0.7%
American Safety Razor Co. (a) 600 8,213
Aptargroup, Inc. 1,100 30,113
Block Drug Co., Inc. Class A 312 12,168
Brady (W.H.) Co. Class A 800 19,100
Church & Dwight Co., Inc. 800 33,400
Cyclopss Corp. (a) 400 38
Dial Corp. 2,300 67,131
Ekco Group, Inc. (a) 100 381
Enamelon, Inc. (a) 800 4,500
Estee Lauder Companies, Inc. 1,400 121,538
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
NONDURABLES - CONTINUED
HOUSEHOLD PRODUCTS - CONTINUED
French Fragrances, Inc. (a) 500 $ 3,281
Nu Skin Enterprises, Inc. 500 10,438
Class A (a)
Paragon Trade Brands, Inc. (a) 100 425
Playtex Products, Inc. (a) 800 11,300
Premark International, Inc. 1,000 31,938
Racing Champions Corp. (a) 500 6,375
Revlon, Inc. Class A (a) 800 11,300
Safeskin Corp. (a) 900 20,925
Tristar Corp. (a) 100 1,100
Ultralife Batteries, Inc. (a) 700 3,631
USA Detergents, Inc. (a) 500 3,250
Windmere-Durable Holdings, 500 2,500
Inc. (a)
York Group, Inc. 500 4,500
407,545
TOBACCO - 0.1%
Dimon, Inc. 1,100 4,813
General Cigar Holdings, Inc. 700 5,119
Class A (a)
Schweitzer-Mauduit 1,000 11,750
International, Inc.
Standard Commercial Corp. 100 588
Swisher International Group, 1,100 9,831
Inc. Class A (a)
Universal Corp. 1,200 32,625
64,726
TOTAL NONDURABLES 1,736,844
PRECIOUS METALS - 0.1%
Coeur d'Alene Mines Corp. (a) 1,200 6,375
Echo Bay Mines Ltd. (a) 6,800 12,312
Getchell Gold Corp. (a) 1,000 25,938
Hecla Mining Co. (a) 2,200 7,975
Royal Oak Mines, Inc. (a) 2,100 320
Stillwater Mining Co. (a) 1,050 24,084
77,004
RETAIL & WHOLESALE - 5.0%
APPAREL STORES - 1.2%
Abercrombie & Fitch Co. Class 1,200 91,200
A (a)
American Eagle Outfitters, 525 36,127
Inc. (a)
AnnTaylor Stores Corp. (a) 400 15,125
Baker (J.), Inc. 600 2,850
Big Dog Holdings, Inc. (a) 100 488
Bon-Ton Stores, Inc. (a) 600 4,200
Brown Group, Inc. 800 12,500
Buckle, Inc. (The) (a) 250 6,109
Burlington Coat Factory 1,200 15,450
Warehouse Corp.
Catherines Stores Corp. (a) 100 825
Cato Corp. Class A 700 6,650
Charming Shoppes, Inc. (a) 4,100 13,838
SHARES VALUE (NOTE 1)
Chicos Fas, Inc. (a) 400 $ 9,850
Childrens Place Retail 400 11,500
Stores, Inc. (The) (a)
Claire's Stores, Inc. 1,600 35,300
Deb Shops, Inc. 100 1,100
Dress Barn, Inc. (a) 900 11,700
Ellet Brothers, Inc. 100 528
Filene's Basement Corp. (a) 300 694
Footstar, Inc. (a) 800 20,400
Genesco, Inc. (a) 200 1,550
Global Imaging Systems, Inc. 300 5,531
(a)
Goody's Family Clothing (a) 400 4,038
Guess, Inc. (a) 1,900 13,063
Gymboree Corp. (a) 700 7,350
Hibbett Sporting Goods, Inc. 300 6,188
(a)
International Isotopes, Inc. 200 2,300
(a)
Intimate Brands, Inc. Class A 5,700 224,081
Just for Feet, Inc. (a) 500 5,109
K & G Mens Center, Inc. (a) 500 4,094
Kenneth Cole Productions, 100 2,275
Inc. Class A (a)
Loehmanns, Inc. (a) 100 150
Men's Wearhouse, Inc. (The) 850 24,969
(a)
Paul Harris Stores, Inc. (a) 200 1,300
Payless ShoeSource, Inc. (a) 900 49,388
Ross Stores, Inc. 900 41,175
Shoe Carnival, Inc. (a) 100 1,075
Stage Stores, Inc. (a) 800 5,800
Syms Corp. (a) 200 1,588
Talbots, Inc. 600 14,513
Track n Trail, Inc. (a) 100 225
United Retail Group, Inc. (a) 500 4,750
Urban Outfitters, Inc. (a) 200 2,450
Venator Group, Inc. (a) 1,900 9,381
Wet Seal, Inc. Class A (a) 500 19,406
Wilsons Leather Experts, Inc. 100 1,075
(a)
749,258
APPLIANCE STORES - 0.0%
Cellstar Corp. (a) 900 10,238
Hirsch International Corp. 600 1,725
Class A (a)
11,963
DRUG STORES - 0.1%
Drug Emporium, Inc. (a) 1,400 8,925
Duane Reade, Inc. (a) 500 15,125
General Nutrition Companies, 1,500 20,063
Inc. (a)
Genovese Drug Stores, Inc. 610 14,716
Class A
Perfumania, Inc. (a) 800 4,000
62,829
GENERAL MERCHANDISE STORES -
0.7%
99 Cents Only Stores (a) 781 36,951
Ames Department Stores, Inc. 300 9,000
(a)
BJ's Wholesale Club, Inc. (a) 1,000 43,563
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
GENERAL MERCHANDISE STORES -
CONTINUED
Cost Plus, Inc. (a) 500 $ 17,719
Dollar Tree Stores, Inc. (a) 1,300 52,000
Elder Beerman Stores Corp. (a) 700 5,534
EZCORP, Inc. Class A 100 744
Factory Card Outlet Corp. (a) 100 159
Family Dollar Stores, Inc. 3,300 66,000
Freds, Inc. Class A 125 1,750
Gottschalks, Inc. (a) 100 675
Hot Topic, Inc. (a) 200 2,825
Jo-Ann Stores, Inc. Class A 200 2,650
(a)
Lechters, Inc. (a) 300 591
Mazel Stores, Inc. (a) 100 1,375
Michaels Stores, Inc. (a) 700 11,988
Neiman-Marcus Group, Inc. (a) 800 20,700
Party City Corp. (a) 450 4,922
Phar-Mor, Inc. (a) 100 588
Saks, Inc. (a) 3,013 108,280
Service Merchandise, Inc. (a) 2,700 1,688
Shopko Stores, Inc. (a) 300 9,450
Southland Corp. (a) 6,000 9,938
Stein Mart, Inc. (a) 800 7,300
Value City Department Stores, 400 4,700
Inc. (a)
421,090
GROCERY STORES - 0.8%
Carr-Gottstein Foods Co. (a) 600 7,238
Central Garden & Pet Co. (a) 600 10,200
Fleming Companies, Inc. 2,000 14,750
Food Lion, Inc. Class A 12,100 115,328
Hain Food Group, Inc. (a) 500 9,563
Hannaford Brothers Co. 1,300 61,100
Hawaiian Natural Water Co., 100 400
Inc. (a)
Ingles Markets, Inc. Class A 1,200 14,325
Marsh Supermarkets, Inc. 100 1,225
Class B
Nash-Finch Co. 100 825
Performance Food Group Co. (a) 700 18,200
Pizza Inn, Inc. 100 363
Richfood Holdings, Inc. Class 1,600 38,000
A
Ruddick Corp. 600 11,063
Schultz Sav-O Stores, Inc. 100 1,738
Smart & Final, Inc. 300 2,644
Synergy Brands, Inc. (a) 1,500 6,422
U.S. Foodservice (a) 1,355 62,923
United Natural Foods, Inc. (a) 800 20,100
Weis Markets, Inc. 600 21,825
Whole Foods Market, Inc. (a) 700 21,613
Wild Oats Markets, Inc. (a) 550 14,713
454,558
RETAIL & WHOLESALE,
MISCELLANEOUS - 2.2%
1-800 CONTACTS, Inc. (a) 300 3,563
SHARES VALUE (NOTE 1)
800-JR Cigar, Inc. (a) 200 $ 3,725
AC Moore Arts & Crafts, Inc. 100 488
(a)
Action Performance Companies, 600 21,525
Inc. (a)
AgriBioTech, Inc. (a) 500 2,188
Audio Book Club, Inc. (a) 600 5,663
Barnes & Noble, Inc. (a) 1,300 38,431
Bed Bath & Beyond, Inc. (a) 2,800 82,425
Best Buy Co., Inc. (a) 2,200 204,050
Beyond.com Corp. (a) 1,000 26,000
Big Entertainment, Inc. (a) 700 8,094
Blair Corp. 100 1,919
Blue Rhino Corp. (a) 500 8,531
Boise Cascade Office Products 1,000 12,000
Corp.
Books-A-Million, Inc. (a) 800 8,950
Borders Group, Inc. (a) 1,500 20,719
Brookstone, Inc. (a) 700 8,750
Brylane, Inc. (a) 200 4,325
Building Material Holding 200 1,963
Corp. (a)
Cameron Ashley Building 100 1,138
Products, Inc. (a)
Cannondale Corp. (a) 400 5,050
CDnow, Inc. 800 12,900
Coldwater Creek, Inc. (a) 300 3,019
Cole National Corp. Class A 200 3,200
(a)
Corporate Express, Inc. (a) 1,491 8,014
Creative Computers, Inc. (a) 500 16,313
Cyberian Outpost, Inc. (a) 1,000 17,063
CyberShop International, Inc. 800 5,950
(a)
Daisytek International Corp. 900 17,156
(a)
Damark International, Inc. 100 863
Class A (a)
dELiA*s, Inc. (a) 700 11,681
DM Management Co. (a) 600 7,800
E4L, Inc. (a) 300 1,693
Eagle Hardware & Garden, Inc. 800 30,050
(a)
Elcom International, Inc. (a) 900 3,375
Enesco Group, Inc. 300 4,969
Fingerhut Companies, Inc. 1,500 36,844
Finish Line, Inc. Class A (a) 300 3,619
Finlay Enterprises, Inc. (a) 700 6,125
Friedmans, Inc. Class A (a) 400 4,200
Gadzooks, Inc. (a) 300 2,400
Genesis Direct, Inc. (a) 1,700 6,694
Global Directmail Corp. (a) 500 8,219
Good Guys, Inc. (a) 1,400 5,031
Guitar Center, Inc. (a) 800 13,350
Hancock Fabrics, Inc. 300 2,081
Handleman Co. (a) 1,000 12,938
Homebase, Inc. (a) 500 2,594
InterTAN, Inc. (a) 1,200 11,700
Land's End, Inc. (a) 1,100 33,344
Lets Talk Cellular & 400 1,675
Wireless, Inc. (a)
Lillian Vernon Corp. 100 1,400
Little Switzerland, Inc. (a) 100 200
Metal Management, Inc. (a) 600 994
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
RETAIL & WHOLESALE - CONTINUED
RETAIL & WHOLESALE,
MISCELLANEOUS - CONTINUED
Micro Warehouse, Inc. (a) 700 $ 13,825
Multiple Zones International, 700 7,263
Inc. (a)
Musicland Stores Corp. (a) 400 4,725
N2K, Inc. (a) 1,100 14,094
National Record Mart, Inc. (a) 600 2,625
Natural Wonders, Inc. (a) 100 450
Navarre Corp. (a) 700 11,200
Office Depot, Inc. (a) 5,300 189,144
Officemax, Inc. (a) 2,000 15,500
ONSALE, Inc. (a) 400 14,600
PC Connection, Inc. 800 12,600
PEAPOD, Inc. (a) 900 7,425
Petco Animal Supplies, Inc. 600 4,838
(a)
PETsMART, Inc. (a) 1,900 14,963
Pier 1 Imports, Inc. 2,650 22,856
School Specialty, Inc. 701 15,466
SCP Pool Corp. (a) 150 2,156
Sharper Image Corp. (a) 700 10,238
Shop At Home, Inc. (a) 1,600 22,600
SkyMall, Inc. (a) 400 5,775
Sodak Gaming, Inc. (a) 300 2,531
Spiegel, Inc. Class A (a) 3,700 26,363
Sport Supply Group, Inc. (a) 100 856
Sports Authority, Inc. (a) 2,100 13,519
Sterling Vision, Inc. (a) 100 350
Summit Technology, Inc. (a) 400 2,450
Sunglass Hut International, 1,300 12,594
Inc. (a)
Tiffany & Co., Inc. 900 51,469
Tractor Supply Co. (a) 100 2,763
Transmedia Network, Inc. (a) 100 469
Transportation World 450 6,216
Entertainment Corp. (a)
U.S. Office Products Co. 371 1,832
U.S.A. Floral Products, Inc. 1,000 14,000
(a)
Vista Eyecare, Inc. (a) 900 4,275
Whitehall Jewellers, Inc. (a) 100 1,700
Williams-Sonoma, Inc. (a) 1,000 34,188
Wilmar Industries, Inc. (a) 700 12,250
Wolohan Lumber Co. 100 1,250
Zale Corp. (a) 500 16,563
1,364,932
TOTAL RETAIL & WHOLESALE 3,064,630
SERVICES - 4.8%
ADVERTISING - 0.6%
Ackerley Group, Inc. 300 5,400
ADVO, Inc. (a) 500 10,000
DoubleClick, Inc. (a) 600 53,925
SHARES VALUE (NOTE 1)
Getty Images, Inc. (a) 700 $ 13,388
HA-LO Industries, Inc. (a) 600 6,412
Lamar Advertising Co. Class A 900 34,763
(a)
Leap Group, Inc. (a) 900 2,306
Network Event Theater, Inc. 800 13,650
(a)
Outdoor Systems, Inc. (a) 3,975 111,052
Pharmaceutical Marketing 500 7,250
Services, Inc. (a)
TMP Worldwide, Inc. (a) 800 45,000
Young & Rubicam, Inc. 1,300 49,075
352,221
EDUCATIONAL SERVICES - 0.3%
Apollo Group, Inc. Class A (a) 1,900 57,119
Childrens Comprehensive 100 1,281
Services, Inc. (a)
Devry, Inc. (a) 1,200 30,150
Education Management Corp. (a) 1,000 26,875
GP Strategies Corp. (a) 100 1,644
ITT Educational Services, 800 29,150
Inc. (a)
Prosoft I-Net Solutions, Inc. 100 419
(a)
Quest Education Corp. (a) 900 8,100
RWD Technologies, Inc. (a) 100 1,375
Strayer Education, Inc. 500 17,063
Whitman Education Group, Inc. 100 425
(a)
173,601
LEASING & RENTAL - 0.5%
Aaron Rents, Inc. Class A 100 1,400
AMERCO (a) 300 6,675
Avis Rent A Car, Inc. (a) 900 20,644
Budget Group, Inc. Class A (a) 1,100 12,856
Caribiner International, Inc. 300 2,344
(a)
Central Parking Corp. 950 32,419
Cort Business Services Corp. 100 1,656
(a)
Dollar Thrifty Automotive 900 10,688
Group, Inc. (a)
DVI, Inc. (a) 100 1,394
GATX Corp. 1,300 44,931
Globe Business Resources, 100 1,394
Inc. (a)
Hanover Compressor Co. (a) 400 8,750
Hertz Corp. Class A 900 35,831
Hollywood Entertainment Corp. 800 21,950
(a)
Interpool, Inc. 400 5,700
Leasing Solutions, Inc. (a) 100 363
McGrath RentCorp. 200 3,750
National Auto Credit, Inc. (a) 400 431
Rent-A-Center, Inc. (a) 800 20,300
Rent-Way, Inc. (a) 911 20,611
Rental Service Corp. (a) 400 8,900
United Rentals, Inc. (a) 1,285 41,361
United Road Services, Inc. 600 9,900
Vari-Lite International, Inc. 100 275
(a)
314,523
PRINTING - 0.4%
American Banknote Corp. (a) 300 188
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SERVICES - CONTINUED
PRINTING - CONTINUED
American Business Products, 200 $ 3,613
Inc.
Big Flower Holdings, Inc. (a) 600 14,475
Bowne & Co., Inc. 400 5,575
Cadmus Communications Corp. 100 1,450
Champion Industries, Inc. 100 750
Consolidated Graphics, Inc. 400 24,300
(a)
CSS Industries, Inc. (a) 600 15,300
Cunningham Graphics 400 5,550
International, Inc. (a)
Cyrk, Inc. (a) 500 3,219
Ennis Business Forms, Inc. 100 894
Harland (John H.) Co. 700 9,406
Merrill Corp. 200 3,350
Nashua Corp. (a) 400 4,825
New England Business Service, 200 6,263
Inc.
Paxar Corp. (a) 700 5,950
Reynolds & Reynolds Co. Class 1,500 28,313
A
Standard Register Co. 400 11,575
United Stationers, Inc. (a) 900 16,481
Valassis Communications, Inc. 1,000 48,000
(a)
Vestcom International, Inc. 500 2,750
(a)
Wallace Computer Services, 800 18,100
Inc.
230,327
SERVICES - 3.0%
Abacus Direct Corp. (a) 300 20,325
ABM Industries, Inc. 300 8,606
ABR Information Services, 900 15,863
Inc. (a)
ACNielsen Corp. (a) 1,800 46,800
Administaff, Inc. (a) 100 1,369
Advanced Health Corp. (a) 1,000 3,063
American Oncology Resources, 400 4,000
Inc. (a)
AMERICAN RETIREMENT CORP (a) 1,200 19,125
AmeriPath, Inc. (a) 1,400 13,038
Amkor Technology, Inc. 3,300 34,650
Analytical Surveys, Inc. (a) 200 5,200
Angelica Corp. 100 1,625
APAC Teleservices, Inc. (a) 400 1,225
Applied Analytical 100 2,600
Industries, Inc. (a)
Assisted Living Concepts, 700 3,325
Inc. (a)
Automobile Protection Corp. 500 5,375
(a)
BA Merchant Services, Inc. 900 18,338
Class A (a)
Berlitz International, Inc. 100 2,481
(a)
Billing Information Concepts 500 5,016
Corp. (a)
Borg-Warner Security Corp. 300 5,456
Boron LePore & Associates, 500 6,313
Inc. (a)
Bright Horizons Family 600 12,675
Solutions, Inc. (a)
Brookdale Living Communities, 300 5,250
Inc. (a)
Building One Services Corp. 800 13,200
(a)
C3, Inc. (a) 600 6,413
SHARES VALUE (NOTE 1)
Cadiz, Inc. (a) 500 $ 4,313
Capital Senior Living Corp. 200 1,888
(a)
Carriage Services, Inc. Class 300 5,494
A (a)
Castle Dental Centers, Inc. 100 606
(a)
Catalina Marketing Corp. (a) 600 38,625
CDI Corp. (a) 200 4,525
Century Business Services, 1,900 22,206
Inc. (a)
CheckFree Holdings Corp. (a) 1,100 37,675
Chemed Corp. 400 11,825
Cintas Corp. 2,200 155,650
Coach USA, Inc. (a) 800 18,800
Coast Dental Services, Inc. 100 688
(a)
Coinmach Laundry Corp. (a) 800 8,250
COMFORCE Corp. (a) 100 481
Computer Horizons Corp. (a) 600 8,963
Cornell Corrections, Inc. (a) 100 1,650
CPI Corp. 60 1,313
Craig (Jenny), Inc. (a) 100 369
Crestline Capital Corp. 370 4,718
Data Processing Resources 600 11,400
Corp. (a)
Day Runner, Inc. (a) 400 5,450
Diamond Technology Partners, 600 14,888
Inc. Class A (a)
Embrex, Inc. (a) 100 463
Employee Solutions, Inc. (a) 400 600
First Consulting Group, Inc. 600 8,475
(a)
Fonar Corp. 500 656
Food Technology Service, Inc. 100 550
(a)
Forrester Research, Inc. (a) 100 3,450
FYI, Inc. (a) 500 15,063
G & K Services, Inc. Class A 600 29,925
Gartner Group, Inc. Class A 2,000 44,875
(a)
General Magnaplate Corp. 100 525
Greg Manning Auctions, Inc. 500 4,313
(a)
Grow Biz International, Inc. 500 6,563
(a)
Hagler Bailly, Inc. (a) 900 17,888
Hall Kinion & Associates, 800 5,800
Inc. (a)
HCIA, Inc. (a) 100 388
Headway Corporate Resources 400 2,050
(a)
Insurance Auto Auctions, Inc. 200 2,325
(a)
Interim Services, Inc. (a) 1,500 28,500
International Telecom Data 650 8,938
Systems, Inc.
Iron Mountain, Inc. (a) 1,050 32,156
Judge Group, Inc. (The) (a) 100 150
Kelly Services, Inc. Class A 500 12,750
Labor Ready, Inc. (a) 550 15,503
Landauer, Inc. 100 2,888
Lason, Inc. (a) 300 16,256
Learning Tree International, 300 2,513
Inc. (a)
Mac-Gray Corp. (a) 100 844
Magellan Health Services, 400 2,725
Inc. (a)
Manpower, Inc. 1,400 33,513
Market Facts, Inc. (a) 400 9,400
Marketing Services Group, 100 672
Inc. (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SERVICES - CONTINUED
SERVICES - CONTINUED
Maximus, Inc. (a) 200 $ 5,588
Medaphis Corp. (a) 1,100 3,575
Media Arts Group, Inc. (a) 700 9,538
Medialink Worldwide, Inc. (a) 200 2,975
Medpartners, Inc. (a) 3,600 21,375
MemberWorks, Inc. (a) 500 17,375
Metamor Worldwide, Inc. (a) 900 16,988
Metzler Group, Inc. (a) 950 40,375
Modis Professional Services, 2,100 28,744
Inc. (a)
Morrison Knudsen Corp. (a) 400 3,875
National Processing, Inc. (a) 600 3,638
NCO Group, Inc. (a) 550 17,188
NewsEdge Corp. (a) 800 8,150
Norrell Corp. 500 7,938
NOVA Corp. 1,943 48,575
Olsten Corp. 2,300 14,231
On Assignment, Inc. (a) 500 17,750
Orthalliance, Inc. Class A (a) 100 900
Paymentech, Inc. (a) 500 9,563
Pinkertons, Inc. (a) 100 2,863
Pittston Co. (Brinks Group) 1,300 31,850
Pre-Paid Legal Services, Inc. 600 17,250
(a)
Precision Response Corp. (a) 400 2,600
Premiere Technologies, Inc. 1,533 13,989
(a)
Prime Medical Services, Inc. 500 3,781
(New) (a)
Profit Recovery Group 700 23,100
International, Inc. (a)
Promedco Management Co. (a) 100 531
Protection One, Inc. (a) 2,800 22,750
RCM Technologies, Inc. (a) 300 5,550
Regis Corp. 800 29,900
RemedyTemp, Inc. Class A (a) 600 9,525
Renaissance Worldwide, Inc. 800 5,000
(a)
Robert Half International, 1,800 64,800
Inc. (a)
Rollins, Inc. 1,400 22,488
Romac International, Inc. (a) 1,440 17,280
RTW, Inc. (a) 400 2,400
Rural/Metro Corp. (a) 600 5,363
SCB Computer Technology, Inc. 200 1,400
(a)
Seattle FilmWorks, Inc. (a) 700 2,538
ServiceMaster Co. 5,850 109,322
SITEL Corp. (a) 900 2,644
Snyder Communications, Inc. 1,300 44,525
(a)
SOS Staffing Services, Inc. 500 4,438
(a)
Sotheby's Holdings, Inc. 1,300 36,400
Class A
Staff Leasing, Inc. (a) 400 4,500
Staffmark, Inc. (a) 800 10,700
StarTek, Inc. (a) 100 1,194
Superior Consultant Holdings 400 13,200
Corp. (a)
Teletech Holdings, Inc. (a) 1,500 10,500
SHARES VALUE (NOTE 1)
Thermolase Corp. (a) 500 $ 1,625
True North Communications 1,400 32,638
Tuboscope, Inc. (a) 600 3,225
Unifirst Corp. 100 2,250
Veterinary Centers of 900 13,500
America, Inc. (a)
Vincam Group, Inc. (a) 750 13,406
Vision Twenty-One, Inc. 100 369
Volt Information Sciences, 200 3,738
Inc. (a)
Wackenhut Corp. 700 15,838
Wackenhut Corrections Corp. 300 6,413
(a)
Warrantech Corp. (a) 100 425
Westaff, Inc. (a) 150 938
York Research Corp. (a) 200 900
Youth Services International, 600 2,250
Inc. (a)
Zebra Technologies Corp. (a) 270 6,969
Zebra Technologies Corp. 1,000 25,813
Class A (a)
1,862,844
TOTAL SERVICES 2,933,516
TECHNOLOGY - 19.5%
COMMUNICATIONS EQUIPMENT - 1.2%
Ace Communication Corp. (a) 100 338
ACT Networks, Inc. (a) 400 4,650
ADC Telecommunications, Inc. 2,900 117,450
(a)
Advanced Fibre 1,200 9,750
Communications, Inc. (a)
Applied Innovation, Inc. (a) 100 413
Applied Signal Technology, 100 725
Inc. (a)
Aspect Telecommunications 1,400 10,763
Corp. (a)
Brite Voice Systems, Inc. (a) 100 938
Broadband Technologies, Inc. 500 859
(a)
Brooktrout Technology, Inc. 400 4,575
(a)
C-Phone Corp. (a) 600 1,613
Carrier Access Corp. (a) 700 27,650
Centigram Communications 100 1,094
Corp. (a)
Checkpoint Systems, Inc. (a) 1,100 9,625
Ciena Corp. (a) 2,300 64,113
CMC Industries, Inc. (a) 100 463
Com21, Inc. (a) 800 18,850
Comdial Corp. (a) 100 688
Coyote Network Systems, Inc. 105 597
(a)
CustomTracks Corp. (a) 1,000 8,000
Data Race, Inc. (a) 700 3,938
Davox Corp. (a) 400 3,450
Dialogic Corp. (a) 400 11,075
Digital Link Corp. (a) 100 613
DSP Communications, Inc. (a) 1,100 16,500
Dycom Industries, Inc. (a) 750 29,766
Elcotel, Inc. (a) 100 500
Excel Switching Corp. (a) 900 21,263
General DataComm Industries 600 1,463
(a)
Harmon Industries, Inc. 600 12,450
IFR Systems, Inc. (a) 150 750
Inter-Tel, Inc. 400 7,050
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMMUNICATIONS EQUIPMENT -
CONTINUED
InterDigital Communication 600 $ 2,925
Corp. (a)
Intermedia Communications, 1,300 23,563
Inc. (a)
InterVoice, Inc. (a) 1,000 10,875
ITI Technologies, Inc. (a) 400 12,875
Jabil Circuit, Inc. (a) 1,600 52,200
Larscom, Inc. Class A (a) 1,300 2,844
Level One Communications, 650 21,775
Inc. (a)
Lo Jack Corp. (a) 1,100 9,900
Metricom, Inc. (a) 100 619
Microlog Corp. (a) 100 122
Mosaix, Inc. (a) 200 1,525
Natural MicroSystems Corp. (a) 700 4,244
Network Equipment 500 4,469
Technologies, Inc. (a)
Norstan, Inc. (a) 100 1,000
Objective Communications, 300 356
Inc. (a)
OSI Systems, Inc. (a) 900 6,525
Osicom Technologies, Inc. (a) 166 2,677
P-Com, Inc. (a) 1,600 10,150
Pairgain Technologies, Inc. 1,100 9,488
(a)
Perceptron, Inc. (a) 200 1,013
Periphonics Corp. (a) 200 2,100
PictureTel Corp. (a) 600 4,903
Plantronics, Inc. (a) 500 30,250
Premisys Communications, Inc. 300 2,475
(a)
Reltec Corp. (a) 1,300 28,275
Shiva Corp. (a) 1,300 7,759
SoftNet Systems, Inc. (a) 500 11,125
Symmetricom, Inc. (a) 200 1,350
Tekelec (a) 1,500 18,188
Teltrend, Inc. (a) 400 7,625
Terayon Communication 600 18,638
Systems, Inc. (a)
Thermo Power Corp. (a) 100 950
Tollgrade Communications, 500 7,813
Inc. (a)
Ultrak, Inc. (a) 100 769
Veramark Technologies, Inc. 100 738
(a)
VTEL Corp. (a) 200 463
Westell Technologies, Inc. 1,000 5,125
Class A (a)
Xircom, Inc. (a) 500 17,000
Xylan Corp. (a) 700 18,550
Zoom Telephonics, Inc. (a) 100 413
755,626
COMPUTER SERVICES & SOFTWARE
- - 11.8%
24/7 Media, Inc. (a) 700 17,413
4Front Software 400 4,475
International, Inc. (a)
7Th Level, Inc. (a) 700 1,925
Acceler8 Technology Corp. (a) 400 1,625
Acclaim Entertainment, Inc. 700 5,469
(a)
Activision, Inc. (a) 1,000 10,875
Acxiom Corp. (a) 1,760 42,130
Adept Technology, Inc. (a) 300 1,988
SHARES VALUE (NOTE 1)
Advantage Learning Systems, 400 $ 30,100
Inc. (a)
Advent Software, Inc. (a) 400 18,450
Affiliated Computer Services, 1,100 50,875
Inc. Class A (a)
Affymetrix, Inc. (a) 300 11,625
AlphaNet Solutions, Inc. (a) 1,500 6,000
Alternative Resources Corp. 600 6,450
(a)
Alydaar Software Corp. (a) 900 8,213
Amazon.com, Inc. (a) 3,500 448,438
American Management Systems, 1,200 40,050
Inc. (a)
American Software, Inc. Class 200 525
A (a)
Anacomp, Inc. (a) 400 5,700
Analysts International Corp. 250 3,563
Ansoft Corp. (a) 400 2,625
AnswerThink Consulting Group, 600 17,400
Inc.
Ansys, Inc. (a) 100 863
Applix, Inc. (a) 100 525
Ardent Software, Inc. (a) 700 13,300
ARIS Corp. (a) 700 9,363
Aspect Development, Inc. (a) 800 24,400
Aspen Technology, Inc. (a) 800 10,250
At Home Corp. Series A (a) 2,700 286,538
audiohighway.com (a) 600 5,588
Avant! Corp. (a) 500 8,625
AVT Corp. (a) 500 12,938
Aware, Inc. (a) 800 27,700
Axent Technolgies, Inc. (a) 680 23,333
Aztec Technology Partners, 1,000 4,625
Inc. (a)
BancTec, Inc. (a) 1,100 15,469
Banyan Systems, Inc. (a) 1,100 11,069
Barra, Inc. (a) 600 13,200
Base Ten Systems, Inc. Class A 1,000 2,000
BEA Systems, Inc. (a) 1,200 20,550
Best Software, Inc. (a) 400 6,500
Bisys Group, Inc. (The) (a) 700 37,363
Black Box Corp. (a) 600 19,350
Boole & Babbage, Inc. 900 24,188
Brio Technology, Inc. (a) 600 11,100
broadcast.com, Inc. (a) 800 67,050
BroadVision, Inc. (a) 500 22,438
Broadway & Seymour, Inc. (a) 100 344
BTG, Inc. (a) 100 763
CACI International, Inc. 100 1,650
Class A (a)
Cadence Design Systems, Inc. 4,800 115,500
(a)
Cambridge Technology 1,100 27,638
Partners, Inc. (a)
CCC Information Services 1,000 12,750
Group, Inc. (a)
Cerner Corp. (a) 400 5,650
Ciber, Inc. (a) 1,000 25,125
Citrix Systems, Inc. (a) 900 69,413
Clarify, Inc. (a) 300 8,138
CMGI, Inc. (a) 1,000 122,625
CNET, Inc. (a) 300 34,388
Cognizant Technology 400 17,200
Solutions Corp. (a)
Command Systems, Inc. (a) 1,000 2,563
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
Complete Business Solutions, 632 $ 17,854
Inc. (a)
CompuCom Systems, Inc. (a) 700 3,041
CompUSA, Inc. (a) 1,600 16,800
Computer Concepts Corp. (a) 800 1,300
Computer Learning Centers, 600 2,588
Inc. (a)
Computer Management Sciences, 300 8,325
Inc. (a)
Computer Task Group, Inc. 300 6,075
Comshare, Inc. 100 325
Concentric Network Corp. (a) 400 17,550
Concord Communications, Inc. 400 22,650
(a)
Connect, Inc. (a) 1,800 6,863
Convergys Corp. (a) 5,600 96,950
Corsair Communictions, Inc. 400 1,850
(a)
Cotelligent, Inc. (a) 100 1,325
CSG Systems International, 700 49,875
Inc. (a)
Cybercash, Inc. (a) 200 2,606
CyberOptics Corp. (a) 200 2,738
Cylink Corp. (a) 500 2,031
DAOU Systems, Inc. (a) 200 1,063
Data Broadcasting Corp. (a) 1,300 19,825
Data Dimensions, Inc. (a) 400 1,975
Data Transmission Network 500 11,438
Corp. (a)
Datastream Systems, Inc. (a) 200 1,863
Datatec Systems, Inc. (a) 400 1,325
DecisionOne Holdings Corp. (a) 100 244
Deltek Systems, Inc. (a) 200 3,025
Dendrite International, Inc. 800 22,500
(a)
Diamond Multimedia Systems, 500 3,500
Inc. (a)
DIDAX, Inc. (a) 500 4,313
Digi International, Inc. (a) 200 1,300
Digital Courier Technologies, 900 4,500
Inc. (a)
DocuCorp International, Inc. 180 956
(a)
Documentum, Inc. (a) 500 10,688
DSET Corp. (a) 600 7,200
DST Systems, Inc. (a) 1,286 69,766
e-Net, Inc. (a) 900 3,263
Earthlink Network, Inc. (a) 600 36,113
EarthWeb, Inc. (a) 300 11,363
ebay, Inc. (a) 900 300,600
Eclipsys Corp. (a) 810 24,958
Edify Corp. (a) 1,000 5,938
eFax.com, Inc. (a) 100 688
Egghead.com, Inc. (a) 400 6,500
EIS International, Inc. (a) 200 500
Electric Lightwave, Inc. 700 5,513
Class A (a)
Electronic Arts, Inc. (a) 1,200 47,850
Electronic Retailing Systems 100 175
International (a)
Electronics for Imaging, Inc. 1,000 34,938
(a)
Engineering Animation, Inc. 300 13,575
(a)
SHARES VALUE (NOTE 1)
Evolving Systems, Inc. (a) 600 $ 3,075
Excalibur Technologies Corp. 100 1,069
(a)
Excite, Inc. (a) 1,100 112,750
Exodus Communications, Inc. 600 44,025
(a)
FactSet Research Systems, 450 18,759
Inc.
Fair, Isaac & Co., Inc. 100 4,600
FaxSav, Inc. (a) 900 6,300
Firearms Training Systems, 200 263
Inc. Class A (a)
Fiserv, Inc. (a) 1,600 75,200
fonix corp (a) 1,000 1,781
Forte Software, Inc. (a) 500 2,625
Franklin Electronic 100 575
Publishers (a)
Galileo International, Inc. 2,100 106,050
General Magic, Inc. (a) 400 1,963
Genesys Telecommunications 600 10,125
Laboratories, Inc. (a)
GeoCities (a) 800 78,200
GeoScience Corp. (a) 400 5,400
GeoTel Communications Corp. 400 17,225
(a)
Geoworks Corp. (a) 100 366
Gerber Scientific, Inc. 900 16,763
Go2Net, Inc. (a) 400 23,400
Great Plains Software, Inc. 500 21,000
(a)
GT Interactive Software Corp. 1,000 4,938
(a)
H.T.E., Inc. (a) 200 1,100
Harbinger Corp. (a) 667 4,336
Health Management Systems, 500 2,656
Inc. (a)
Henry (Jack) & Associates, 500 18,000
Inc.
HNC Software, Inc. (a) 300 8,063
Hybrid Networks, Inc. (a) 800 200
Hyperion Solutions Corp. (a) 690 9,789
i2 Technologies, Inc. (a) 1,400 34,913
IDT Corp. (a) 200 2,488
IDX Systems Corp. (a) 700 16,625
Ikos Systems, Inc. (a) 100 388
ImageMax, Inc. (a) 700 788
IMR Global Corp. (a) 450 8,156
Inacom Corp. (a) 584 9,052
Indus International, Inc. (a) 200 744
Infinium Software, Inc. (a) 300 1,275
Infonautics, Inc. (a) 1,100 4,572
Information Management 100 213
Association, Inc. (a)
Information Resources, Inc. 1,300 10,888
(a)
Informix Corp. (a) 3,420 29,925
Infoseek Corp. (a) 600 42,938
Inktomi Corp. (a) 1,000 62,125
Inprise Corp. (a) 781 3,905
Inso Corp. (a) 600 4,181
Integrated Systems, Inc. (a) 300 4,763
Intelligroup, Inc. (a) 700 11,244
IntelliQuest Information 100 1,088
Group, Inc. (a)
International Network 600 30,675
Services (a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
InterVU, Inc. (a) 700 $ 14,350
Intuit, Inc. (a) 1,300 128,619
Investment Technology Group, 300 12,281
Inc. (a)
ISS Group, Inc. (a) 600 36,656
J.D. Edwards & Co. (a) 2,600 41,113
JDA Software Group, Inc. (a) 600 3,750
Keane, Inc. (a) 1,400 43,313
Learning Co., Inc. (The) (a) 1,740 50,569
Legato Systems, Inc. (a) 700 34,475
Level 8 Systems, Inc. (a) 600 5,700
LHS Group, Inc. (a) 1,100 47,300
Logility, Inc. (a) 100 438
Lycos, Inc. (a) 900 78,863
MacNeal-Schwendler Corp. (a) 100 563
Macromedia, Inc. (a) 700 21,394
Manugistics Group, Inc. (a) 300 2,363
Mapics, Inc. (a) 800 8,650
MapInfo Corp. (a) 600 9,075
Marcam Solutions, Inc. (a) 400 1,100
Medical Manager Corp. (a) 700 19,600
Melita International Corp. (a) 400 7,525
Mentor Graphics Corp. (a) 2,000 28,000
Mercury Computer Systems, 600 11,850
Inc. (a)
Mercury Interactive Corp. (a) 300 19,444
MessageMedia, Inc. (a) 800 5,000
Meta Group, Inc. (a) 600 13,425
MetaCreations Corp. (a) 300 1,931
Metro Information Services, 600 13,350
Inc. (a)
MicroAge, Inc. (a) 300 2,541
Micrografx, Inc. (a) 200 2,125
Micromuse, Inc. (a) 800 25,800
MicroStrategy, Inc. Class A 400 9,950
(a)
Microware Systems Corp. (a) 100 225
Midway Games, Inc. (a) 598 5,120
MindSpring Enterprises, Inc. 600 51,300
(a)
ModaCAD, Inc. (a) 300 4,988
Mysoftware Co. (a) 500 9,250
National Computer Systems, 900 28,828
Inc.
National Data Corp. 943 45,559
National Instrument Corp. (a) 850 24,756
National Techteam, Inc. (a) 200 1,300
NCR Corp. (a) 2,400 98,250
NetGravity, Inc. (a) 700 14,788
NetManage, Inc. (a) 727 1,999
Netscape Communications Corp. 2,200 170,363
(a)
NetSpeak Corp. (a) 500 7,688
Network Peripherals, Inc. (a) 400 2,900
Network Solutions, Inc. Class 200 36,300
A (a)
Networks Associates, Inc. (a) 2,818 132,446
SHARES VALUE (NOTE 1)
New Era of Networks, Inc. (a) 600 $ 37,425
Novadigm, Inc. (a) 900 6,188
Oak Technology, Inc. (a) 1,900 6,234
Object Design, Inc. (a) 1,400 9,013
Objective Systems 500 1,500
Integrators, Inc. (a)
Omega Research, Inc. (a) 100 1,188
Omtool Ltd. (a) 700 3,063
OnHealth Network Co. (a) 700 7,700
Ontrack Data International, 300 1,238
Inc. (a)
Open Market, Inc. (a) 500 6,500
Orcad, Inc. (a) 100 700
Peerless Systems Corp. (a) 400 3,750
Pegasus Systems, Inc. (a) 600 22,500
Pegasystems, Inc. (a) 400 1,900
Peregrine Systems, Inc. (a) 1,000 25,625
Peritus Software Services, 1,100 619
Inc. (a)
Personnel Group of America, 900 11,869
Inc. (a)
Pervasive Software, Inc. (a) 100 1,788
Phoenix International, Inc. 150 994
(a)
Phoenix Technologies Ltd. (a) 990 7,239
Physician Computer Network, 200 63
Inc. (a)
Pilot Network Services, Inc. 1,000 8,375
(a)
Platinum Software Corp. (a) 1,035 7,504
Platinum Technology, Inc. (a) 1,534 20,326
Policy Management Systems 1,000 36,563
Corp. (a)
Polycom, Inc. (a) 600 12,150
Preview Travel, Inc. (a) 700 14,263
Progress Software Corp. (a) 450 13,838
Project Software & 400 9,700
Development, Inc. (a)
ProxyMed, Inc. (a) 400 4,000
PSINet, Inc. (a) 1,000 35,813
PSW Technologies, Inc. (a) 100 434
Puma Technology, Inc. (a) 100 469
QAD, Inc. (a) 200 800
QRS Corp. (a) 300 14,944
Quadramed Corp. (a) 600 9,300
Qualix Group, Inc. (a) 1,000 6,375
Quickturn Design Systems, 900 12,600
Inc. (a)
Radiant Systems, Inc. (a) 400 3,675
Rainbow Technologies, Inc. (a) 150 2,381
Rational Software Corp. (a) 1,700 50,469
RealNetworks, Inc. (a) 700 49,088
Remedy Corp. (a) 400 8,225
Rogue Wave Software, Inc. (a) 500 4,125
Ross Systems, Inc. (a) 1,000 3,031
Sabre Group Holdings, Inc. 700 27,475
Class A (a)
Sanchez Computer Associates, 300 6,788
Inc. (a)
Santa Cruz Operation, Inc. (a) 500 2,469
Sapient Corp. 600 40,125
SeaChange International, Inc. 100 781
(a)
Secure Computing Corp. (a) 600 11,325
Security Dynamics 700 12,950
Technologies, Inc. (a)
Segue Software, Inc. (a) 400 4,925
SEI Investments Co. 400 39,600
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTER SERVICES & SOFTWARE
- - CONTINUED
Siebel Systems, Inc. (a) 1,891 $ 83,204
Simione Central Holdings, 100 200
Inc. (a)
Socrates Technologies Corp. 100 256
(a)
Software AG Systems, Inc. (a) 900 10,069
Software Spectrum, Inc. (a) 300 3,713
Sportsline USA, Inc. (a) 800 36,000
SPR, Inc. (a) 450 6,750
SPSS, Inc. (a) 100 1,963
Spyglass, Inc. (a) 200 2,463
SS&C Technologies, Inc. (a) 200 3,600
Stac Electronics 300 291
STB Systems, Inc. (a) 900 5,850
Sterling Software, Inc. (a) 1,800 45,900
Structural Dynamics Research 500 9,750
Corp. (a)
Summit Design, Inc. (a) 100 350
SunGard Data Systems, Inc. (a) 2,036 80,677
Sunquest Information Systems, 200 2,400
Inc. (a)
Sybase, Inc. (a) 1,200 9,750
Sykes Enterprises, Inc. (a) 1,200 34,200
Symantec Corp. (a) 1,000 18,063
Symix Systems, Inc. (a) 400 8,250
Synopsys, Inc. (a) 1,365 63,131
Syntel, Inc. (a) 1,100 10,588
System Software Associates, 600 1,988
Inc. (a)
Systems & Computer Technology 400 3,250
Corp. (a)
Systemsoft Corp. (a) 400 200
Take-Two Interactive 1,100 11,963
Software, Inc. (a)
Tangram Enterprise Solutions, 100 300
Inc. (a)
TAVA Technologies, Inc. (a) 500 3,094
TCSI Corp. (a) 300 605
Technology Solutions, Inc. (a) 1,200 9,825
Telescan, Inc. (a) 700 9,056
Tera Computer Co. (a) 1,100 5,500
THINK New Ideas, Inc. (a) 100 825
Thinking Tools, Inc. (a) 100 38
ThrustMaster, Inc. (a) 400 5,200
Tier Technologies, Inc. (a) 700 9,144
Timberline Software Corp. 400 5,950
Titan Corp. (a) 373 2,098
Total System Services, Inc. 3,950 89,863
Transaction Systems 800 31,450
Architects, Inc. Class A (a)
TSI International Software 300 15,056
Ltd. (a)
TSR, Inc. (a) 300 2,438
Tyler Corp. (a) 300 1,650
Unicomp, Inc. (a) 100 331
Unify Corp. (a) 900 11,419
Unigraphics Solutions, Inc. 500 8,469
Class A (a)
USWEB Corp. (a) 1,650 55,584
SHARES VALUE (NOTE 1)
Vantive Corp. (a) 400 $ 4,600
Verilink Corp. (a) 100 381
Verio, Inc. (a) 700 19,863
VeriSign, Inc. (a) 600 58,800
Veritas Software Corp. (a) 950 67,450
Verity, Inc. (a) 500 19,313
Versant Corp. (a) 300 441
Vertel Corp. (a) 300 534
Viasoft, Inc. (a) 200 963
Visio Corp. (a) 800 23,000
Visioneer, Inc. (a) 300 488
Visual Networks, Inc. (a) 600 23,550
Walker Interactive Systems, 500 2,656
Inc. (a)
Wall Data, Inc. (a) 600 12,450
Wang Laboratories, Inc. (a) 1,400 33,425
Wave Systems Corp. Class A (a) 900 9,113
WavePhore, Inc. (a) 700 4,900
White Pine Software, Inc. (a) 200 550
Whittman-Hart, Inc. (a) 1,200 37,575
Wind River Systems, Inc. (a) 900 20,531
Xionics Document 100 300
Technologies, Inc. (a)
Xybernaut Corp. (a) 900 3,684
Yahoo!, Inc. (a) 4,400 675,400
Zitel Corp. (a) 200 569
7,370,134
COMPUTERS & OFFICE EQUIPMENT
- - 2.1%
Adaptec, Inc. (a) 2,200 43,863
Advanced Digital Information 400 6,800
Corp. (a)
Alpha Microsystems (a) 1,100 6,119
Amplicon, Inc. 100 1,250
Ancor Communications, Inc. (a) 100 625
Apex PC Solutions, Inc. (a) 400 9,800
Applied Magnetics Corp. (a) 300 1,200
ATEC Group, Inc. (a) 300 2,606
Aura Systems, Inc. (a) 1,200 600
Auspex Systems, Inc. (a) 600 6,038
Bell & Howell Co. (a) 800 26,500
Boca Research, Inc. (a) 100 388
Boundless Corp. (a) 400 1,875
Box Hill Systems Corp. (a) 1,100 5,775
Caere Corp. (a) 500 7,375
CDW Computer Centers, Inc. (a) 400 27,850
CHS Electronics, Inc. (a) 1,000 7,000
Coinstar, Inc. (a) 1,000 15,750
Comdisco, Inc. 3,500 42,000
Computer Network Technology 1,200 14,250
Corp. (a)
Comverse Technology, Inc. (a) 830 59,553
Concurrent Computer Corp. (a) 1,500 6,609
Cross (A.T.) Co. 200 1,250
Cybex Corp. 525 13,584
Diebold, Inc. 1,300 37,944
Digital Lightwave, Inc. (a) 400 1,525
Digital River, Inc. (a) 800 30,800
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
COMPUTERS & OFFICE EQUIPMENT
- - CONTINUED
Drexler Technology Corp. (a) 100 $ 1,100
Dunn Computer Corp. (a) 1,200 4,650
ECCS, Inc. (a) 100 125
Emulex Corp. (a) 400 15,000
En Pointe Technologies, Inc. 700 4,375
(a)
Encad, Inc. (a) 400 1,850
Equinox Systems, Inc. (a) 450 5,063
Evans & Sutherland Computer 600 9,600
Corp. (a)
Exabyte Corp. (a) 700 3,500
FileNET Corp. (a) 400 3,213
FOCUS Enhancements, Inc. (a) 200 319
Fore Systems, Inc. (a) 2,200 31,900
FVC.com, Inc. (a) 700 8,838
General Binding Corp. 100 2,725
General Scanning, Inc. (a) 200 1,325
Genicom Corp. (a) 100 216
Globix Corp. (a) 700 17,806
Hauppauge Digital, Inc. (a) 400 3,500
HMT Technology Corp. (a) 600 4,144
Hunt Corp. 100 1,019
Hutchinson Technology, Inc. 300 9,338
(a)
Identix, Inc. (a) 300 1,931
Ingram Micro, Inc. Class A (a) 900 19,800
Insight Enterprises, Inc. (a) 750 17,438
Intergraph Corp. (a) 1,900 10,509
Iomega Corp. (a) 5,400 32,738
Itron, Inc. (a) 100 700
Javelin Systems, Inc. (a) 700 8,575
Komag, Inc. (a) 1,700 11,900
Kronos, Inc. (a) 400 16,925
Lexmark International Group, 1,400 144,463
Inc. Class A (a)
Manchester Equipment Co., 1,900 6,531
Inc. (a)
Miami Computer Supply Corp. 600 13,125
(a)
Micron Electronics, Inc. (a) 1,800 25,875
MICROS Systems, Inc. (a) 600 16,725
Microtouch Systems, Inc. (a) 100 1,756
MMC Networks, Inc. (a) 1,000 14,063
MRV Communications, Inc. (a) 700 4,681
MTI Technology Corp. (a) 1,600 9,200
Neoware Systems, Inc. (a) 900 1,013
Netopia, Inc. (a) 900 5,625
Network Appliance, Inc. (a) 1,600 67,200
Network Computing Devices, 400 2,150
Inc. (a)
NewCom, Inc. (a) 400 300
ObjectSoft Corp. (a) 1,900 5,700
ODS Networks, Inc. (a) 200 725
Overland Data, Inc. (a) 900 7,200
Par Technology Corp. (a) 100 650
Performance Technologies, 100 1,119
Inc. (a)
SHARES VALUE (NOTE 1)
Planar Systems, Inc. (a) 900 $ 7,650
Pomeroy Computer Resources, 300 6,788
Inc. (a)
Printronix, Inc. (a) 100 1,313
Procom Technology, Inc. (a) 100 625
Proxim, Inc. (a) 500 15,625
PSC, Inc. (a) 200 1,688
Quantum Corp. (a) 3,426 56,315
Radisys Corp. (a) 300 7,688
Read-Rite Corp. (a) 1,300 11,050
Safeguard Scientifics, Inc. 500 18,688
(a)
SanDisk Corp. (a) 400 11,200
Scan-Optics, Inc. (a) 100 419
ScanSource, Inc. (a) 100 2,150
SCI Systems, Inc. (a) 1,200 37,125
SCM Microsystems, Inc. (a) 300 24,900
SED International Holdings, 100 363
Inc. (a)
SEEQ Technology, Inc. (a) 300 769
Sequent Computer Systems, 600 5,719
Inc. (a)
Splash Technology Holdings, 200 1,400
Inc. (a)
Storage Computer Corp. (a) 100 213
Symbol Technologies, Inc. 1,150 60,950
Syquest Technology, Inc. (a) 1,700 159
Tech Data Corp. (a) 900 15,300
Telxon Corp. 600 3,825
Texas Micro, Inc. (a) 100 500
Tidel Technologies, Inc. (a) 2,100 4,856
Transact Technologies, Inc. 100 294
(a)
Trident Microsystems, Inc. (a) 1,200 6,600
Trinitech Systems, Inc. (a) 100 775
UniView Technologies Corp. (a) 1,100 1,444
Valence Technology, Inc. (a) 300 2,213
Vitech America, Inc. (a) 110 1,148
Voice Control Systems, Inc. 600 1,875
(a)
Western Digital Corp. (a) 1,600 15,400
1,284,179
ELECTRONIC INSTRUMENTS - 1.0%
ADE Corp. (a) 400 5,450
Aeroflex, Inc. (a) 500 6,719
Aetrium, Inc. (a) 100 725
Anadigics, Inc. (a) 200 2,838
Analogic Corp. 100 3,775
Aurora Biosciences Corp. (a) 200 1,550
Autocyte, Inc. (a) 100 450
Barringer Technologies, Inc. 600 4,500
(a)
Beckman Coulter, Inc. 900 43,481
BTU International, Inc. (a) 100 344
Cerprobe Corp. (a) 200 3,000
Cholestech Corp. (a) 100 300
Chromatics Color Sciences 650 4,306
International, Inc. (a)
Chromavision Medical Systems, 100 763
Inc. (a)
Cognex Corp. (a) 700 17,500
Cohu, Inc. 300 7,088
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
ELECTRONIC INSTRUMENTS -
CONTINUED
Credence Systems Corp. (a) 300 $ 6,338
DBT Online, Inc. (a) 200 4,725
Electro Scientific 400 14,625
Industries, Inc. (a)
FARO Technologies, Inc. (a) 100 550
FEI Co. (a) 100 863
Fisher Scientific 800 13,900
International, Inc. (a)
GenRad, Inc. (a) 500 8,563
Hach Co. Class A (non-vtg.) 100 813
Helix Technology, Inc. 400 7,875
Hurco Companies, Inc. (a) 100 431
Isco, Inc. 100 500
Kollmorgen Corp. 100 1,500
Kulicke & Soffa Industries, 300 7,613
Inc. (a)
LAM Research Corp. (a) 1,100 32,519
LeCroy Corp. (a) 500 8,719
LTX Corp. (a) 2,500 10,000
Medar, Inc. (a) 100 163
Mesa Laboratories, Inc. (a) 100 475
Metrika Systems Corp. (a) 100 800
Molecular Devices Corp. (a) 100 2,588
Newport Corp. 100 1,706
Novellus Systems, Inc. (a) 700 41,344
Optical Coating Laboratories, 600 19,200
Inc.
PPT Vision, Inc. (a) 100 488
Quad Systems Corp. (a) 100 238
Sawtek, Inc. (a) 700 15,575
SBS Technologies, Inc. (a) 500 9,500
Schmitt Industries, Inc. (a) 100 350
Silicon Valley Group, Inc. (a) 1,100 14,644
Smart Modular Technologies, 1,100 17,669
Inc. (a)
Tech-Sym Corp. (a) 600 15,000
Teradyne, Inc. (a) 1,800 85,725
Thermedics Detection, Inc. (a) 100 888
Thermo Bioanalysis Corp. (a) 800 13,550
Thermo Instrument Systems, 2,200 32,588
Inc. (a)
Thermo Optek Corp. (a) 400 4,350
Thermo Vision Corp. (a) 42 179
Thermoquest Corp. (a) 600 6,600
Trimble Navigation Ltd. (a) 1,200 9,900
TSI, Inc. 100 850
Varian Associates, Inc. 1,000 32,000
Waters Corp. (a) 800 74,450
Wireless Telecom Group, Inc. 200 325
X-Rite, Inc. 300 2,100
Zygo Corp. (a) 400 4,500
630,068
ELECTRONICS - 3.3%
3Dfx Interactive, Inc. (a) 500 5,438
8X8, Inc. (a) 1,000 4,375
SHARES VALUE (NOTE 1)
Act Manufacturing, Inc. (a) 400 $ 6,050
Actel Corp. (a) 800 10,400
Advanced Energy Industries, 400 7,700
Inc. (a)
Align-Rite International, 100 1,250
Inc. (a)
Alliance Semiconductor Corp. 1,200 4,200
(a)
Alpine Group, Inc. (a) 200 2,400
Altera Corp. (a) 2,100 102,113
Amphenol Corp. (New) Class A 200 7,163
(a)
Analog Devices, Inc. (a) 3,400 85,213
Anaren Microwave, Inc. (a) 400 9,625
Applied Digital Access, Inc. 100 244
(a)
Applied Micro Circuits Corp. 700 27,475
(a)
Applied Science & Technology, 150 1,744
Inc. (a)
Arrow Electronics, Inc. (a) 2,200 31,213
Artesyn Technologies, Inc. (a) 1,200 17,775
Artisan Components, Inc. (a) 900 5,231
Atmel Corp. (a) 2,400 41,250
Audiovox Corp. Class A (a) 200 1,338
Avnet, Inc. 1,100 43,656
AVX Corp. 2,500 34,219
Bel Fuse, Inc. Class A (a) 300 13,800
Bell Industries, Inc. (a) 1,100 12,238
Benchmark Electronics, Inc. 100 3,000
(a)
Brightpoint, Inc. (a) 1,400 20,825
Broadcom Corp. Class A 400 24,075
Burr-Brown Corp. (a) 600 12,150
C-Cube Microsystems, Inc. (a) 1,000 18,750
C.P. Clare Corp. (a) 700 3,194
CFM Technologies, Inc. (a) 100 994
Cidco, Inc. (a) 800 3,450
Cirrus Logic, Inc. (a) 1,700 13,813
Conexant Systems, Inc. (a) 1,600 27,200
Cree Research, Inc. (a) 400 13,075
CTS Corp. 600 29,363
Cypress Semiconductor Corp. 1,300 12,431
(a)
Dallas Semiconductor Corp. 400 14,150
Digital Microwave Corp. (a) 1,330 10,598
DII Group, Inc. (a) 900 21,038
EFTC Corp. (a) 1,500 6,516
Electroglas, Inc. (a) 400 5,163
Electromagnetic Sciences, 100 1,413
Inc. (a)
ESS Technology, Inc. (a) 600 3,450
Esterline Technologies Corp. 200 3,425
(a)
Etec Systems, Inc. (a) 400 17,725
Exar Corp. (a) 400 6,075
Ferrofluidics Corp. (a) 100 347
Gatefield Corp. (a) 300 234
General Semiconductor, Inc. 500 3,250
(a)
Griffon Corp. (a) 400 3,600
Hadco Corp. (a) 200 6,375
Harmonic Lightwaves, Inc. (a) 400 9,550
hi/fn, Inc. (a) 76 2,033
Ibis Technology Corp. (a) 400 4,625
Illinois Superconductor Corp. 1,100 1,169
(a)
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TECHNOLOGY - CONTINUED
ELECTRONICS - CONTINUED
Innovex, Inc. 400 $ 6,050
Integrated Circuit Systems, 200 3,725
Inc. (a)
Integrated Device Technology, 1,300 8,369
Inc. (a)
Integrated Silicon Solution 400 1,113
(a)
International Rectifier Corp. 800 5,500
(a)
Intevac, Inc. (a) 100 850
Invision Technologies, Inc. 1,300 6,744
(a)
Katy Industries, Inc. 100 1,688
KEMET Corp. (a) 600 6,600
Kent Electronics Corp. (a) 400 4,550
Kopin Corp. (a) 100 1,650
Lattice Semiconductor Corp. 400 15,950
(a)
Linear Technology Corp. 3,200 140,200
Marshall Industries (a) 700 9,975
Maxim Integrated Products, 2,800 116,725
Inc. (a)
Maxwell Technologies, Inc. (a) 400 10,275
MEMC Electronic Materials, 700 5,075
Inc. (a)
Merix Corp. (a) 400 2,200
Methode Electronics, Inc. 600 6,300
Class A
Micrel, Inc. (a) 600 27,000
Micro Linear Corp. (a) 100 500
Microchip Technology, Inc. (a) 900 24,525
Microsemi Corp. (a) 400 4,200
Molex, Inc. 3,175 84,931
Mylex Corp. (a) 200 2,300
NeoMagic Corp. (a) 800 8,700
Optek Technology, Inc. (a) 400 6,400
Opti, Inc. (a) 200 950
Pacific Aerospace & 700 1,400
Electronics, Inc. (a)
Panda Project, Inc. (a) 100 38
Parlex Corp. (a) 100 1,000
Pericom Semiconductor Corp. 900 8,888
(a)
Photronics, Inc. (a) 600 12,338
Pioneer Standard Electronics, 1,300 10,075
Inc.
Plexus Corp. (a) 200 6,538
Power Integrations, Inc. (a) 600 14,475
Power-One, Inc. (a) 1,100 10,725
Praegitzer Industries, Inc. 100 750
(a)
QLogic Corp. (a) 400 23,250
Quality Semiconductor, Inc. 200 800
(a)
Rambus, Inc. (a) 500 36,344
Ramtron International Corp. 600 338
(a)
Reptron Electronics, Inc. (a) 100 388
Research Frontiers, Inc. (a) 100 806
RF Micro Devices, Inc. (a) 500 38,500
S3, Inc. (a) 1,100 9,694
Sanmina Corp. (a) 1,172 61,237
SDL, Inc. (a) 500 27,250
Semtech Corp. (a) 500 15,188
SHARES VALUE (NOTE 1)
Sheldahl, Inc. (a) 200 $ 1,250
Siliconix, Inc. (a) 100 2,163
Sipex Corp. (a) 600 6,863
Standard Microsystems Corp. 400 3,300
(a)
Sterling Commerce, Inc. (a) 1,886 49,036
Storage Technology Corp. (a) 2,000 69,625
Supertex, Inc. (a) 100 1,100
Tegal Corp. (a) 100 313
Telcom Semiconductor, Inc. (a) 200 863
Telscape International, Inc. 200 1,500
(a)
TII Industries, Inc. (a) 200 456
Transwitch Corp. (a) 500 17,375
Triquint Semiconductor, Inc. 200 3,313
(a)
Triumph Group, Inc. (a) 100 2,563
Uniphase Corp. (a) 800 70,500
Unitrode Corp. (a) 1,100 14,988
Universal Display Corp. (a) 100 456
Vari-L, Inc. (a) 400 2,600
Videoserver, Inc. (a) 600 7,650
Vishay Intertechnology, Inc. 1,460 18,889
Vitesse Semiconductor Corp. 1,500 68,906
(a)
VLSI Technology, Inc. (a) 700 10,850
Voxware, Inc. (a) 200 250
World Access, Inc. (a) 1,055 8,308
Xilinx, Inc. (a) 1,500 104,625
Zoran Corp. (a) 200 3,600
2,043,575
PHOTOGRAPHIC EQUIPMENT - 0.1%
3D Systems Corp. (a) 500 3,188
Imation Corp. (a) 1,500 23,250
In Focus Systems, Inc. (a) 700 5,775
Panavision, Inc. (a) 5 47
VirtualFund.com, Inc. (a) 100 203
32,463
TOTAL TECHNOLOGY 12,116,045
TRANSPORTATION - 2.0%
AIR TRANSPORTATION - 0.8%
800 Travel Systems, Inc. (a) 1,000 5,688
AHI Services, Inc. (a) 600 15,675
AirTran Holdings, Inc. (a) 3,000 10,125
Alaska Air Group, Inc. (a) 300 15,206
America West Holding Corp. 900 15,300
Class B (a)
ASA Holdings, Inc. 700 23,494
Atlantic Coast Airlines 700 22,400
Holdings (a)
Atlas Air, Inc. (a) 600 18,075
Comair Holdings, Inc. 1,600 60,200
Continental Airlines, Inc. 1,100 38,088
Class B (a)
Frontier Airlines, Inc. (a) 1,500 13,500
Mesa Air Group, Inc. (a) 500 3,406
Mesaba Holdings, Inc. (a) 800 12,200
Midway Airlines Corp. (a) 300 3,863
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
TRANSPORTATION - CONTINUED
AIR TRANSPORTATION - CONTINUED
Midwest Express Holdings, 750 $ 20,156
Inc. (a)
Navigant International, Inc. 1,400 7,875
(a)
Northwest Airlines Corp. 2,000 50,000
Class A (a)
SkyWest, Inc. 600 18,863
Transportation World 1,300 7,719
Airlines, Inc. (a)
Travel Services 600 9,150
International, Inc. (a)
UAL Corp. (a) 1,300 77,675
Viad Corp. 1,800 47,588
World Airways, Inc. (a) 800 900
497,146
RAILROADS - 0.3%
ABC Rail Products Corp. (a) 100 1,413
Florida East Coast Industries 500 13,563
Kansas City Southern 2,400 112,200
Industries, Inc.
MotivePower Industries, Inc. 500 13,781
(a)
Railtex, Inc. (a) 100 1,088
Trinity Industries, Inc. 900 29,644
Westinghouse Air Brake Co. 400 7,925
Wisconsin Central 800 11,000
Transportation Corp. (a)
190,614
SHIPPING - 0.1%
Alexander & Baldwin, Inc. 1,600 31,600
Gulfmark Offshore, Inc. (a) 100 1,200
Hvide Marine, Inc. (a) 1,000 4,563
International Shipholding 100 1,575
Corp.
Kirby Corp. (a) 275 4,675
Marine Transport Corp. (a) 30 83
OMI Corp. (a) 300 469
Trico Marine Services, Inc. 1,000 4,500
(a)
48,665
TRUCKING & FREIGHT - 0.8%
Air Express International 1,100 19,319
Corp.
Airborne Freight Corp. 1,200 46,800
AirNet Systems, Inc. (a) 400 3,450
American Freightways Corp. (a) 800 12,475
Arkansas Best Corp. (a) 1,300 9,994
Arnold Industries, Inc. 300 4,575
C.H. Robinson Worldwide, Inc. 1,300 34,125
Carey International, Inc. (a) 400 7,025
Celadon Group, Inc. (a) 700 7,263
Circle International Group, 400 6,850
Inc.
CNF Transportation, Inc. 1,200 50,700
Consolidated Freightways 1,000 14,500
Corp. (a)
Covenant Transport, Inc. 600 10,875
Class A (a)
Dynamex, Inc. (a) 1,500 5,531
Eagle USA Airfreight, Inc. (a) 800 23,100
Expeditors International of 700 32,594
Washington, Inc.
SHARES VALUE (NOTE 1)
Fritz Companies, Inc. (a) 600 $ 4,463
Frozen Food Express 100 756
Industries, Inc.
Heartland Express, Inc. (a) 400 6,450
Hub Group, Inc. Class A (a) 100 1,950
Hunt (J.B.) Transport 600 14,100
Services, Inc.
Jevic Transportaion, Inc. (a) 500 2,875
Knights Transportation, Inc. 150 3,188
(a)
Landstar System, Inc. (a) 200 7,544
M.S. Carriers, Inc. (a) 100 2,700
Mark VII, Inc. (a) 100 1,681
Old Dominion Freight Lines, 100 1,100
Inc. (a)
Pittston Co. (Burlington 400 2,875
Group)
Roadway Express, Inc. 500 7,688
Rollins Truck Leasing Corp. 850 9,031
Simon Transportation 500 2,375
Services, Inc. Class A (a)
Swift Transportation Co., 1,100 32,931
Inc. (a)
Trailer Bridge, Inc. (a) 100 253
Transit Group, Inc. (a) 100 438
US Xpress Enterprises, Inc. 600 9,600
(a)
USA Truck, Inc. (a) 100 1,156
USFreightways Corp. 800 25,500
Werner Enterprises, Inc. 775 13,853
XTRA Corp. 600 23,925
Yellow Corp. (a) 800 14,300
479,908
TOTAL TRANSPORTATION 1,216,333
UTILITIES - 8.7%
CELLULAR - 1.1%
Advanced Radio Telecom Corp. 400 3,200
(a)
Aerial Communications, Inc. 600 4,200
(a)
American Mobile Satellite 300 1,294
Corp. (a)
Applied Cellular Technology, 2,300 6,325
Inc. (a)
Arch Communications Group, 100 150
Inc. (a)
Associated Group, Inc. Class 1,000 49,813
A (a)
Boston Communications Group, 100 1,150
Inc. (a)
Cellnet Data Systems, Inc. (a) 1,800 11,363
Cellular Communication of 500 12,313
Puerto Rico, Inc.
Cellular Communications 200 15,713
International, Inc. (a)
Century Telephone 1,850 114,238
Enterprises, Inc.
CoreComm Ltd. (a) 500 18,688
General Communications, Inc. 400 1,950
Class A (a)
Geotek Communications, Inc. 2,000 44
(a)
LCC International, Inc. (a) 500 2,750
Lightbridge, Inc. (a) 100 475
Metrocall, Inc. (a) 1,700 6,800
PageMart Wireless, Inc. Class 500 3,000
A (a)
Paging Network, Inc. (a) 2,900 11,600
Powertel, Inc. (a) 800 10,400
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
CELLULAR - CONTINUED
QUALCOMM, Inc. 1,400 $ 102,200
Rural Cellular Corp. Class A 100 1,400
(a)
SkyTel Communications, Inc. 1,100 19,800
(a)
Telephone & Data Systems, 1,500 75,375
Inc.
Teligent, Inc. Class A (a) 400 15,725
United States Cellular Corp. 2,300 96,888
(a)
USCI, Inc. (a) 100 19
Vanguard Cellular Systems, 1,200 33,450
Inc. Class A (a)
Western Wireless Corp. Class 1,300 35,181
A (a)
655,504
ELECTRIC UTILITY - 3.6%
Allegheny Energy, Inc. 2,400 71,250
Avista Corp. 1,900 31,113
BEC Energy 700 25,506
Black Hills Corp. 250 5,625
Calenergy, Inc. (a) 1,700 47,706
Calpine Corp. (a) 900 29,475
Central Hudson Gas & Electric 400 14,500
Corp.
Central Vermont Public 100 1,163
Service Corp.
CILCORP, Inc. 500 29,719
Citizens Utilities Co. Class B 7,566 57,691
CLECO Corp. 700 20,563
CMP Group, Inc. 1,100 18,563
CMS Energy Corp. 1,900 78,613
Commonwealth Energy System 300 10,838
Conectiv, Inc. 2,000 42,375
DPL, Inc. 4,300 76,594
DQE, Inc. 1,800 68,738
Eastern Utilities Associates 1,100 31,281
El Paso Electric Co. (a) 3,000 21,563
Empire District Electric Co. 200 4,638
Energy East Corp. 1,600 85,800
Florida Progress Corp. 2,000 80,250
Hawaiian Electric Industries, 1,200 41,850
Inc.
IDACORP, Inc. 1,200 37,275
Illinova Corp. 1,400 33,250
Interstate Energy Corp. 1,939 53,444
IPALCO Enterprises, Inc. 1,300 62,319
Kansas City Power & Light Co. 1,700 43,350
KTI, Inc. (a) 600 10,800
LG&E Energy Corp. 3,002 68,483
Madison Gas & Electric Co. 200 4,025
Midamerican Energy Holdings 1,400 37,800
Co.
Minnesota Power, Inc. 1,200 48,225
Montana Power Co. 1,400 85,225
Nevada Power Co. 1,600 38,300
New England Electric System 1,000 48,688
NIPSCO Industries, Inc. 2,000 51,875
SHARES VALUE (NOTE 1)
Northeast Utilities (a) 1,900 $ 28,381
Northwestern Corp. 1,100 26,469
OGE Energy Corp. 2,300 54,913
Orange & Rockland Utilities, 300 16,838
Inc.
Otter Tail Power Co. 100 3,706
Pinnacle West Capital Corp. 2,400 86,700
Potomac Electric Power Co. 2,300 56,063
Public Service Co. of New 1,800 27,675
Mexico
Puget Sound Power & Light Co. 1,900 45,838
Rochester Gas & Electric 1,200 31,350
Corp.
SCANA Corp. 1,800 42,300
Sierra Pacific Resources 900 30,881
SIGCORP, Inc. 800 23,000
TECO Energy, Inc. 3,700 80,013
Thermo Ecotek Corp. (a) 300 2,475
TNP Enterprises, Inc. 500 14,625
Unisource Energy Corp. (a) 500 5,781
United Illuminating Co. 200 8,875
Utilicorp United, Inc. 1,900 65,313
Wisconsin Energy Corp. 2,000 51,125
WPS Resources Corp. 700 20,825
2,241,619
GAS - 1.3%
AGL Resources, Inc. 1,900 36,219
Aquila Gas Pipeline Corp. 200 1,750
Atmos Energy Corp. 800 19,200
Cascade Natural Gas Corp. 100 1,581
Colonial Gas Co. 100 3,431
Connecticut Energy Corp. 100 2,606
CTG Resources, Inc. 200 4,600
Dynegy, Inc. 2,700 32,400
El Paso Energy Corp. 2,700 98,381
Energen Corp. 400 5,600
Equitable Resources, Inc. 1,100 28,463
Indiana Energy, Inc. 266 5,320
K N Energy, Inc. 2,250 47,109
KeySpan Energy 3,460 91,690
Laclede Gas Co. 200 4,600
MCN Energy Group, Inc. 2,000 35,625
MDU Resources Group, Inc. 1,250 29,375
Mitchell Energy & Development 700 7,788
Corp. Class A
National Fuel Gas Co. 1,100 44,344
New Jersey Resources Corp. 900 31,444
Northwest Natural Gas Co. 1,300 31,809
NUI Corp. 100 2,294
Piedmont Natural Gas Co., 900 30,713
Inc.
Public Service Co. of North 300 8,850
Carolina, Inc.
Questar Corp. 2,300 41,113
SEMCO Energy, Inc. 105 1,654
South Jersey Industries, Inc. 100 2,431
Southern Union Co. 315 5,985
Southwest Gas Corp. 1,100 31,625
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UTILITIES - CONTINUED
GAS - CONTINUED
Southwestern Energy Co. 300 $ 1,669
UGI Corp. 1,000 20,313
Washington Gas Light Co. 1,300 31,119
Western Resources, Inc. 1,800 50,738
WICOR, Inc. 1,100 23,238
Yankee Energy System, Inc. 100 2,444
817,521
TELEPHONE SERVICES - 2.5%
Aliant Communications, Inc. 1,100 43,863
Allegiance Telecom, Inc. (a) 900 21,544
Atlantic Tele-Network, Inc. 140 1,540
CFW Communications Co. 100 2,138
Cincinnati Bell, Inc. 2,600 51,350
Commonwealth Telephone 200 6,475
Enterprises, Inc. (a)
COMSAT Corp. Series 1 1,300 38,025
CTC Communications Corp. (a) 800 10,400
e.spire Communications, Inc. 1,300 7,150
(a)
FirstCom Corp. (a) 1,100 3,025
Global TeleSystems Group, 1,300 72,150
Inc. (a)
GST Telecommunications, Inc. 1,600 11,200
(a)
Hyperion Telecommunications, 1,200 13,500
Inc. Class A (a)
ICG Communications, Inc. (a) 700 13,169
ITC DeltaCom, Inc. (a) 800 11,600
IXC Communications, Inc. 729 37,908
Level 3 Communications, Inc. 6,900 386,400
(a)
Mastech Corp. (a) 900 22,444
McLeodUSA, Inc. Class A (a) 1,700 65,450
Metromedia Fiber Network, 1,800 78,300
Inc. Class A (a)
NEXTLINK Communications, Inc. 600 27,450
Class A (a)
North Pittsburgh Systems, 100 1,394
Inc.
Pacific Gateway Exchange, 600 15,000
Inc. (a)
PLD Telekom, Inc. (a) 1,000 1,864
Primus Telecommunications 961 10,511
Group, Inc. (a)
Qwest Communications 7,610 467,539
International, Inc. (a)
RCN Corp. (a) 1,500 36,000
Source Media, Inc. (a) 500 8,094
STAR Telecommunications, Inc. 715 9,295
(a)
Startec Global Communications 600 5,475
Corp. (a)
Tel-Save.com, Inc. (a) 1,900 18,881
Telegroup, Inc. (a) 1,000 188
Transaction Network Services, 600 11,775
Inc. (a)
U.S. LEC Corp. Class A 700 10,106
SHARES VALUE (NOTE 1)
USN Communications, Inc. (a) 700 $ 350
Viatel, Inc. (a) 600 11,475
West Teleservices Corp. (a) 900 8,888
WinStar Communications, Inc. 800 25,200
(a)
1,567,116
WATER - 0.2%
American States Water Co. 100 2,819
American Water Works, Inc. 2,100 63,525
Aquarion Co. 100 3,381
Consumers Water Co. 100 2,984
E Town Corp. 100 4,294
Pennsylvania Enterprises, 100 2,250
Inc.
Philadelphia Suburban Corp. 833 18,118
United Water Resources, Inc. 500 9,625
106,996
TOTAL UTILITIES 5,388,756
TOTAL COMMON STOCKS 61,030,876
(Cost $63,183,923)
PREFERRED STOCKS - 0.0%
CONVERTIBLE PREFERRED STOCKS
- - 0.0%
CONSTRUCTION & REAL ESTATE -
0.0%
REAL ESTATE INVESTMENT TRUSTS
- - 0.0%
Kimco Realty Corp. Series D 108 2,673
$1.875
Prime Retail, Inc. Series B, 60 938
$2.13
3,611
NONCONVERTIBLE PREFERRED
STOCKS - 0.0%
CONSTRUCTION & REAL ESTATE -
0.0%
REAL ESTATE - 0.0%
Price Enterprises, Inc. 900 13,163
Series A $1.40
HEALTH - 0.0%
MEDICAL EQUIPMENT & SUPPLIES
- - 0.0%
Mediq, Inc. Series A $1.30 7 39
(a)
TOTAL NONCONVERTIBLE 13,202
PREFERRED STOCKS
TOTAL PREFERRED STOCKS 16,813
(Cost $17,146)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
U.S. TREASURY OBLIGATIONS -
1.3%
PRINCIPAL AMOUNT
U.S. Treasury Bills, yield at $ 772,000 767,609
date of purchase 4.25% to
4.7% 3/4/99 to 6/3/99 (b)
(Cost $767,574)
TOTAL INVESTMENT IN $ 61,815,298
SECURITIES - 100%
(Cost $63,968,643)
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT UNREALIZED GAIN/(LOSS)
PURCHASED
5 S&P 500 Stock Index Contracts Mar. 1999 $ 1,554,375 $ 5,271
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENTS IN
SECURITIES - 2.5%
</TABLE>
LEGEND
(a) Non-income producing
(b) Security or a portion of the security was pledged to cover margin
requirements for futures contracts. At the period end, the value of
securities pledged amounted to $33,250.
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $45,443,987 and $13,597,892, respectively.
The market value of futures contracts opened and closed during the
period amounted to $58,443,174 and $61,285,738, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $13,530,321. The fund
received cash collateral of $13,723,729 which was invested in the
Bankers Trust Institutional Daily Asset Fund. The fund also received
non-cash collateral of $261,013 which represents U.S. Treasury
obligations.
INCOME TAX INFORMATION
At February 28, 1999, the aggregate cost of investment securities for
income tax purposes was $64,123,166. Net unrealized depreciation
aggregated $2,307,868, of which $9,358,925 related to appreciated
investment securities and $11,666,793 related to depreciated
investment securities.
The fund hereby designates approximately $557,000 as a capital gain
dividend for the dividend paid deduction.
A total of 29% of the dividends distributed during the fiscal year
qualifies for the dividends received deductions for corporate
shareholders.
The fund will notify shareholders in January 2000 of the percentages
for use in preparing 1999 income tax returns.
SPARTAN EXTENDED MARKET INDEX FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
ASSETS
Investment in securities, at $ 61,815,298
value (cost $63,968,643) -
See accompanying schedule
Cash 3,204
Receivable for investments 190,065
sold
Receivable for fund shares 663,615
sold
Dividends receivable 43,202
Interest receivable 7,415
Purchase fees receivable 4,951
Other receivables 86
Investment of cash collateral 13,723,729
received for securities
loaned
Receivable from investment 5,443
adviser for expense
reductions
TOTAL ASSETS 76,457,008
LIABILITIES
Payable for fund shares $ 207,273
redeemed
Payable for daily variation 8,641
on futures contracts
Other payables and accrued 42,667
expenses
Collateral on securities 13,723,729
loaned, at value
TOTAL LIABILITIES 13,982,310
NET ASSETS $ 62,474,698
Net Assets consist of:
Paid in capital $ 62,234,103
Undistributed net investment 177,510
income
Accumulated undistributed net 2,211,159
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation (2,148,074)
(depreciation) on investments
NET ASSETS, for 2,433,837 $ 62,474,698
shares outstanding
NET ASSET VALUE, offering $25.67
price and redemption price
per share ($62,474,698
(divided by) 2,433,837
shares) A
A OFFERING PRICE PER SHARE DOES NOT INCLUDE THE EFFECT OF THE PURCHASE
FEE.
STATEMENT OF OPERATIONS
YEAR ENDED FEBRUARY 28, 1999
INVESTMENT INCOME $ 596,012
Dividends
Interest (including income on 172,573
securities loaned of $76,989)
TOTAL INCOME 768,585
EXPENSES
Management fee and $ 149,028
sub-advisory fees
Transfer agent fees 72,869
Accounting fees 60,602
Non-interested trustees' 166
compensation
Registration fees 79,101
Audit 38,512
Legal 445
Miscellaneous 122
Total expenses before 400,845
reductions
Expense reductions (247,395) 153,450
NET INVESTMENT INCOME 615,135
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities 2,316,154
Foreign currency transactions (39)
Futures contracts 758,803 3,074,918
Change in net unrealized
appreciation (depreciation)
on:
Investment securities (3,723,227)
Futures contracts (48,614) (3,771,841)
NET GAIN (LOSS) (696,923)
NET INCREASE (DECREASE) IN $ (81,788)
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET YEAR ENDED FEBRUARY 28, 1999 NOVEMBER 5, 1997
ASSETS (COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1998
Operations Net investment $ 615,135 $ 98,519
income
Net realized gain (loss) 3,074,918 197,160
Change in net unrealized (3,771,841) 1,623,767
appreciation (depreciation)
NET INCREASE (DECREASE) IN (81,788) 1,919,446
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (480,843) (57,356)
From net investment income
From net realized gain (1,053,874) -
TOTAL DISTRIBUTIONS (1,534,717) (57,356)
Share transactions Net 60,271,075 36,182,093
proceeds from sales of shares
Reinvestment of distributions 1,464,744 57,314
Cost of shares redeemed (33,355,405) (3,121,662)
NET INCREASE (DECREASE) IN 28,380,414 33,117,745
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Purchase fees 456,042 274,912
TOTAL INCREASE (DECREASE) 27,219,951 35,254,747
IN NET ASSETS
NET ASSETS
Beginning of period 35,254,747 -
End of period (including $ 62,474,698 $ 35,254,747
undistributed net investment
income of $177,510 and
$48,883, respectively)
OTHER INFORMATION
Shares
Sold 2,346,010 1,440,826
Issued in reinvestment of 57,682 2,358
distributions
Redeemed (1,287,002) (126,037)
Net increase (decrease) 1,116,690 1,317,147
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 26.77 $ 25.00
period
Income from Investment
Operations
Net investment income D .32 .11
Net realized and unrealized (.92) 1.43
gain (loss)
Total from investment (.60) 1.54
operations
Less Distributions
From net investment income (.22) (.07)
From net realized gain (.52) -
Total distributions (.74) (.07)
Purchase fees added to paid .24 .30
in capital
Net asset value, end of period $ 25.67 $ 26.77
TOTAL RETURN B, C (1.33)% 7.39%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 62,475 $ 35,255
(000 omitted)
Ratio of expenses to average .31% F .26% A, F
net assets
Ratio of net investment 1.25% 1.44% A
income to average net assets
Portfolio turnover rate 29% 40% A
A ANNUALIZED
B TOTAL RETURNS FOR PERIODS
OF LESS THAN ONE YEAR ARE NOT ANNUALIZED.
C THE TOTAL RETURNS WOULD HAVE
BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN.
D NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD.
E FOR THE PERIOD
NOVEMBER 5, 1997
(COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1998.
F FMR
AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
SPARTAN INTERNATIONAL INDEX FUND
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. Total return reflects the change in the value of an
investment, assuming reinvestment of the fund's dividend income and
capital gains (the profits earned upon the sale of securities that
have grown in value) and the effect of the 1.00% purchase fee. If
Fidelity had not reimbursed certain fund expenses, the total returns
would have been lower.
CUMULATIVE TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR LIFE OF FUND
1999
SPARTAN INTERNATIONAL INDEX 6.58% 18.12%
SPARTAN INTERNATIONAL INDEX 5.51% 16.94%
(INCL. 1.00% PURCHASE FEE)
MSCI EAFE 5.19% 15.67%
International Funds Average 1.61% n/a
CUMULATIVE TOTAL RETURNS show the fund's performance in percentage
terms over a set period - in this case, one year or since the fund
started on November 5, 1997. For example, if you had invested $1,000
in a fund that had a 5% return over the past year, the value of your
investment would be $1,050. You can compare the fund's returns to the
performance of the Morgan Stanley Capital International Europe,
Australasia, Far East (MSCI EAFE) Index - a market
capitalization-weighted index that is designed to represent the
performance of developed stock markets outside the United States and
Canada. To measure how the fund's performance stacked up against its
peers, you can compare it to the International Funds Average, which
reflects the performance of mutual funds with similar objectives
tracked by Lipper Inc. The past one year average represents a peer
group of 544 mutual funds. These benchmarks include reinvested
dividends and capital gains, if any, and excludes the effect of sales
charges.
AVERAGE ANNUAL TOTAL RETURNS
PERIODS ENDED FEBRUARY 28, PAST 1 YEAR LIFE OF FUND
1999
SPARTAN INTERNATIONAL INDEX 6.58% 13.50%
SPARTAN INTERNATIONAL INDEX 5.51% 12.64%
(INCL. 1.00% PURCHASE FEE)
MSCI EAFE 5.19% 11.71%
International Funds Average 1.61% n/a
AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and
show you what would have happened if the fund had performed at a
constant rate each year.
$10,000 OVER LIFE OF FUND
SPARTAN INTL INDEX MS EAFE (NET MA TAX)
00399 MS001
1997/11/05 9900.00 10000.00
1997/11/30 9804.96 9790.87
1997/12/31 9872.76 9878.11
1998/01/31 10337.22 10331.71
1998/02/28 10972.38 10996.56
1998/03/31 11258.20 11337.23
1998/04/30 11453.36 11428.83
1998/05/31 11401.44 11375.46
1998/06/30 11513.26 11463.62
1998/07/31 11637.06 11581.92
1998/08/31 9855.96 10149.13
1998/09/30 9883.91 9840.18
1998/10/31 11014.07 10868.19
1998/11/30 11541.21 11427.14
1998/12/31 11969.61 11880.11
1999/01/31 11993.94 11847.20
1999/02/26 11693.89 11567.02
IMATRL PRASUN SHR__CHT 19990228 19990415 100945 R00000000000019
$10,000 OVER LIFE OF FUND: Let's say hypothetically that $10,000 was
invested in Spartan International Index Fund on November 5, 1997, when
the fund started, and the current 1.00% purchase fee was paid. As the
chart shows, by February 28, 1999, the value of the investment would
have been $11,694 - a 16.94% increase on the initial investment. For
comparison, look at how the Morgan Stanley Capital International
Europe, Australasia, Far East (MSCI EAFE) Index did over the same
period. With dividends and capital gains, if any, reinvested, the same
$10,000 investment would have grown to $11,567 - a 15.67% increase.
(checkmark)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 long-term growth and short-term
volatility. 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.
SPARTAN INTERNATIONAL INDEX FUND
FUND TALK: THE MANAGER'S OVERVIEW
(photograph of Richard Vella)
An interview with
Richard Vella, Portfolio Manager of Spartan
International Index Fund for Bankers Trust,
sub-adviser of the fund
Q. HOW DID THE FUND PERFORM, RICHARD?
A. For the 12 months that ended February 28, 1999, the fund posted a
total return of 6.58% (figure does not include the purchase fee). In
comparison, the Morgan Stanley Capital International Europe,
Australasia and Far East (MSCI EAFE) Index returned 5.19%. Fund
peformance also compares favorably to the International funds average,
which returned 1.61% during the 12-month period, according to Lipper
Inc.
Q. WHAT WAS THE INVESTMENT ENVIRONMENT LIKE DURING THE PERIOD?
A. While fund performance improved dramatically during the past six
months, it was a difficult and volatile period for many international
stock markets over the past year. The Asian crisis, fears of
emerging-market currency devaluations, Russia's economic collapse and
worries about Latin America kept investors on the edge of their seats
during most of 1998. While the majority of market indexes in Europe,
Japan and Asia ended up with gains during the period, the twists and
turns that these markets experienced left most investors feeling a bit
queasy. For the six-month period that ended August 31, 1998, the MSCI
EAFE index was down -7.71%. However, the picture was bleaker for other
indexes, such as the TOPIX - a broad measure of the Japanese stock
market performance - which was down -21.84% during the same six-month
period. This bearish environment, however, was quickly reversed in the
last quarter of 1998 when the U.S. Federal Reserve Board stepped in to
restore confidence and liquidity to the global financial markets with
three interest-rate cuts. Most of the markets included in the EAFE
index surged ahead in the fourth quarter of 1998 and early 1999.
Q. EUROPE IS THE FUND'S LARGEST INDEX WEIGHTING, REPRESENTING OVER
HALF OF THE FUND'S ASSETS. HOW DID THE EUROPEAN MARKETS PERFORM?
A. Global trends drove performance for the major European markets
during 1998. The U.K., Germany, France and Switzerland all experienced
significant volatility amidst global financial upheaval in the third
quarter of 1998. However, by year's-end, all of these markets staged
impressive recoveries against a backdrop of historically low interest
rates and renewed investor confidence. British Telecommunications and
SmithKline Beecham were among the fund's top performers.
Q. JAPAN IS ANOTHER MAJOR COMPONENT OF THE MSCI EAFE INDEX. HOW DID
THIS MARKET PERFORM?
A. During most of 1998, Japanese investors were hopeful of an economic
turnaround that, unfortunately, failed to materialize. While their
economy remains in recession and consumer spending is weak, the
Japanese market rallied late in the period, spurred by an
unprecedented and sudden appreciation of the yen against the dollar.
Their market received an additional boost in the form of the Japanese
government's largest fiscal stimulus package in its history. Two
holdings that provided slight gains during the period were Nippon
Telegraph & Telephone and Toyota Motor Corp.
Q. DID ANY OTHER OVERSEAS MARKETS HAVE A SIGNIFICANT IMPACT ON THE
FUND'S RETURN?
A. Not really. Outside of Europe and Japan, the fund's exposure to
other regions is relatively small. While Hong Kong and Australia
represent approximately 4% of the fund's combined investments, they
had a marginal impact on total return.
Q. WHAT'S YOUR OUTLOOK, RICHARD?
A. I'm optimistic that Europe's economies could continue to improve.
However, corporate earnings must be strong to support prevailing
valuations. If earnings disappoint, more stock market corrections
could become reality. As for the situation in Japan, there are
glimmers of economic improvement. Toward the end of the period, we
began to see Japanese companies and the government adopt a more
shareholder-friendly focus. Lastly, emerging markets still appear to
be a question mark at this point. Continuing economic and currency
concerns, combined with political and social unrest, provide a
difficult backdrop for a fast recuperation.
THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO
MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON
THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED
ON MARKET AND OTHER CONDITIONS. FOR MORE INFORMATION, SEE PAGE A-2.
NOTE TO SHAREHOLDERS:
On November 30, 1998, Bankers Trust Corporation entered into an
Agreement and Plan of Merger with Deutsche Bank AG. The merger is
contingent upon various regulatory approvals. At a meeting held on
March 18, 1999, the fund's Board of Trustees approved a new
sub-advisory agreement among the fund, Fidelity Management & Research
Co. and Bankers Trust or its successor by merger that would be
effective at the time of the merger. This agreement will be presented
to the fund's shareholders for approval.
Shares purchased after April 28, 1999 will no longer be subject to a
1.00% purchase fee. However, the fund will deduct a short-term trading
fee of 1.00% from the redemption amount if you sell shares purchased
after April 28, 1999 after holding them for less than 90 days. The fee
is paid to the fund, and is designed to offset the brokerage
commissions, market impact, and other costs associated with
fluctuations in fund asset levels and cash flow caused by short-term
shareholder trading.
(checkmark)FUND FACTS
GOAL: total return that corresponds to that of
the MSCI EAFE index
FUND NUMBER: 399
TRADING SYMBOL: FSIIX
STATE DATE: November 5, 1997
SIZE: as of February 28, 1999, more than
$43 million
MANAGER: Richard Vella, since inception
SPARTAN INTERNATIONAL INDEX FUND
INVESTMENT CHANGES
<TABLE>
<CAPTION>
<S> <C> <C>
TOP TEN STOCKS AS OF FEBRUARY
28, 1999
% OF FUND'S INVESTMENTS % OF FUND'S INVESTMENTS IN
THESE STOCKS 6 MONTHS AGO
Novartis AG (Reg.) 1.5 1.6
(Switzerland, Drugs &
Pharmaceuticals)
Glaxo Wellcome PLC (United 1.3 1.5
Kingdom, Drugs &
Pharmaceuticals)
British Telecommunications 1.3 1.3
PLC (United Kingdom,
Telephone Services)
Royal Dutch Petroleum Co. 1.3 1.5
(Hague Registry)
(Netherlands, Oil & Gas)
Nippon Telegraph & Telephone 1.3 1.5
Corp. (Japan, Telephone
Services)
Deutsche Telekom AG (Germany, 1.3 0.9
Telephone Services)
Toyota Motor Corp. (Japan, 1.2 1.3
Autos, Tires, & Accessories)
Roche Holding AG 1.2 1.2
participation certificates
(Switzerland, Drugs &
Pharmaceuticals)
France Telecom SA (France, 1.2 0.7
Telephone Services)
DaimlerChrysler AG (Reg.) 1.1 0.7
(Germany, Autos, Tires, &
Accessories)
</TABLE>
GEOGRAPHIC DIVERSIFICATION (% OF FUND'S INVESTMENTS)
AS OF FEBRUARY 28, 1999
France 9.7%
United Kingdom 22.9%
Germany 10.5%
Switzerland 7.5%
Italy 5.3%
Spain 3.5%
Japan 21.0%
Other 13.6%
Netherlands 6.0%
Row: 1, Col: 1, Value: 9.699999999999999
Row: 1, Col: 2, Value: 10.5
Row: 1, Col: 3, Value: 5.3
Row: 1, Col: 4, Value: 21.0
Row: 1, Col: 5, Value: 6.0
Row: 1, Col: 6, Value: 13.6
Row: 1, Col: 7, Value: 3.5
Row: 1, Col: 8, Value: 7.5
Row: 1, Col: 9, Value: 22.9
PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF FUTURES CONTRACTS, IF
APPLICABLE.
AS OF AUGUST 31, 1998
France 10.1%
United Kingdom 22.5%
Germany 11.0%
Switzerland 8.3%
Italy 5.3%
Japan 20.5%
Spain 3.3%
Other 13.2%
Netherlands 5.8%
Row: 1, Col: 1, Value: 10.1
Row: 1, Col: 2, Value: 11.0
Row: 1, Col: 3, Value: 5.3
Row: 1, Col: 4, Value: 20.5
Row: 1, Col: 5, Value: 5.8
Row: 1, Col: 6, Value: 13.2
Row: 1, Col: 7, Value: 3.3
Row: 1, Col: 8, Value: 8.300000000000001
Row: 1, Col: 9, Value: 22.5
PERCENTAGES ARE ADJUSTED FOR THE EFFECT OF FUTURES CONTRACTS, IF
APPLICABLE.
SPARTAN INTERNATIONAL INDEX FUND
INVESTMENTS FEBRUARY 28, 1999
Showing Percentage of Total Value of Investment in Securities
COMMON STOCKS - 87.7%
SHARES VALUE (NOTE 1)
AUSTRALIA - 2.4%
Amcor Ltd. 3,898 $ 19,311
AMP Ltd. 6,407 72,239
Australian Gas Light Co. 1,948 12,719
Boral Ltd. 4,522 6,487
Brambles Industries Ltd. 1,489 37,750
Broken Hill Proprietary Co. 12,217 91,332
Ltd. (The)
Coca-Cola Amatil Ltd. 7,086 27,788
Coles Myer Ltd. 7,522 40,001
Colonial Ltd. 4,098 15,430
CSR Ltd. 5,953 14,282
Fosters Brewing Group Ltd. 11,933 34,090
General Property Trust 11,062 18,469
Gio Australia Holdings Ltd. 2,266 6,129
Goodman Fielder Ltd. 5,173 4,766
James Hardie Industries Ltd. 1,000 2,195
Lend Lease Corp. Ltd. 3,221 39,834
M.I.M. Holdings Ltd. 4,861 2,104
National Australia Bank Ltd. 8,098 134,449
News Corp. Ltd. 11,372 79,460
Normandy Mining Ltd. 6,957 5,937
North Ltd. 3,027 4,492
Orica Ltd. 1,158 6,194
Pacific Dunlop Ltd. 4,100 7,124
Pioneer International Ltd. 3,000 6,020
QBE Insurance Group Ltd. 1,043 3,902
Rio Tinto Ltd. 2,331 29,021
Santos Ltd. 2,300 6,343
Smith (Howard) Ltd. 500 3,710
Southcorp Holdings Ltd. 4,129 15,830
Tabcorp Holdings Ltd. 1,300 9,084
Telstra Corp. Ltd. 29,579 150,272
Wesfarmers Ltd. 577 5,760
Westfield Trust Unit 7,758 15,831
Westfield Trust Unit (New) 241 518
Westpac Banking Corp. 11,639 76,626
WMC Ltd. 8,363 25,856
Woolworths Ltd. 6,565 21,328
1,052,683
AUSTRIA - 0.3%
Austria Tabak AG 150 11,128
Bank Austria AG 609 32,900
Boehler-Uddeholm AG 50 2,407
Flughafen Wien AG 90 3,870
Generali Holding Vienna AG 50 11,108
Mayr Melnhof Karton AG 60 2,870
Oesterreichische 170 27,364
Elektrizitaetswirtschafts AG
(verbund)
OMV AG 140 12,965
VA Technologie AG 60 4,664
Wienerberger Baustoffind AG 60 11,907
121,183
SHARES VALUE (NOTE 1)
BELGIUM - 1.8%
Barco Industries NV 76 $ 13,281
Bekaert SA 8 3,299
Cimenteries CBR 50 4,418
Cementbedrijven
Colruyt SA 21 15,825
D'ieteren SA 18 8,414
Delhaize Freres & Compagnie 230 22,213
Le Lion SA
Electrabel SA 349 146,214
Fortis (B) 4,427 161,797
Fortis (B):
CVG rights 7/20/01 (a) 196 929
VVPR STRIP 1,764 19
Groupe Bruxelles Lambert SA 140 26,240
KBC Bancassurance Holding NV 1,840 142,103
Petrofina SA 150 69,656
Solvay & Compagnie SA 470 32,438
Tractebel 490 86,598
UCB SA 800 41,719
Union Miniere SA 100 3,272
778,435
DENMARK - 0.7%
A/S Dampskibsselskabet 5 45,228
Svenborg
Carlsberg AS:
Class A 200 9,016
Class B 100 4,671
D/S 1912 Class B 5 31,511
Danisco AS 326 15,953
Den Danske Bank Group AS 300 33,365
International Service Systems 137 8,492
AS Class B
Novo-Nordisk AS Class B 369 42,516
Tele Danmark AS Class B 651 78,580
Unidanmark AS Class A 200 14,295
283,627
FINLAND - 1.6%
Instrumentarium OY:
Class A 100 2,977
Class B 19 574
Kemira OY 500 3,032
Kesko OY 900 12,840
Merita Ltd. Series A 4,600 27,031
Metra OY Series B 200 3,749
Outokumpu OY Class A 1,300 11,452
OY Nokia AB:
Series A 2,800 379,750
Series K 800 109,500
Pohjola Group Insurance Corp.:
Class A 100 5,513
Class B 100 5,513
Raisio Group PLC 1,300 8,026
Sampo Insurance Co. Ltd. 400 13,274
Sonera Group PLC 2,600 44,861
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
FINLAND - CONTINUED
Teito Corp. Class B 400 $ 16,096
UPM-Kymmene Corp. 1,900 49,541
693,729
FRANCE - 8.1%
Accor SA 186 43,474
Alcatel Alsthom Compagnie 1,081 117,221
Generale d'Electricite SA
(RFD)
Axa SA 1,808 236,806
Axa SA rights 12/31/01 (a) 22 115
Banque Nationale de Paris 1,241 99,468
BIC Ste 200 10,364
Bouygues 118 29,467
Canal Plus SA 190 59,617
Cap Gemini SA 394 68,416
Carrefour Supermarche SA 206 147,398
Casino Guichard Perrachon et 438 40,418
Compagnie
Coflexip SA 35 2,178
Compagnie de St. Gobain 510 79,618
Compagnie Financiere de 768 66,468
Paribas Class A (Reg.)
Dassault Systemes SA 326 12,975
Elf Aquitaine 1,444 149,093
Eridania Beghin Say Group 100 14,553
Essilor International SA 50 19,184
France Telecom SA 5,347 502,555
Groupe Danone 397 99,312
L'Air Liquide 465 69,620
L'Oreal SA 356 219,794
Lafarge SA 531 50,639
Lagardere S.C.A. (Reg.) 450 17,364
Legrand SA 171 35,274
LVMH Moet Hennessy Louis 501 107,156
Vuitton
Michelin SA (Compagnie 749 33,526
Generale des Etablissements)
Class B
Pechiney SA Class A 207 6,869
Pernod-Ricard 250 14,856
Peugeot SA 295 39,516
Pinault Printemps SA 637 106,116
Promodes 85 54,400
Rhone-Poulenc SA Class A 1,734 79,764
Sagem SA 7 4,059
Sanofi SA 592 104,625
Schneider SA 798 47,069
Seita 135 8,037
Sidel SA 78 5,512
Simco SA (Reg.) 124 11,087
Societe Generale, France 575 84,757
Class A
Sodexho Alliance SA 220 36,188
Suez Lyonnaise des Eaux 729 146,358
Technip SA 53 4,791
Thomson CSF 1,070 31,851
SHARES VALUE (NOTE 1)
Total SA Class B 1,242 $ 128,237
Usinor Sacilor 900 11,093
Valeo SA 252 21,157
Vivendi SA 835 218,640
3,497,055
GERMANY - 8.9%
Aachener & Muenchener 200 26,681
Beteiligungs AG (Reg.)
Adidas-Salomon AG 250 24,255
Allianz AG (Reg.) 1,323 406,951
BASF AG 3,500 122,322
Bayer AG 4,100 144,874
Bayerische Hypo-und 2,425 138,491
Vereinsbank AG
Beiersdorf AG 250 18,467
CKAG Colonia Konzern AG 100 8,787
(Bearer)
Continental Gummi-Werke AG 350 8,790
DaimlerChrysler AG (Reg.) 5,192 487,724
Degussa-Huels AG (a) 350 12,059
Deutsche Bank AG 2,950 154,650
Deutsche Lufthansa AG (Reg.) 2,400 53,793
Deutsche Telekom AG 11,900 542,502
Dresdner Bank AG 2,550 89,121
Heidelberger Zement AG 300 20,391
Hochtief AG 250 8,269
Karstadt AG 50 19,013
Linde AG 50 27,786
Man AG, Muenchen 50 13,456
Mannesmann AG 2,000 266,276
Merck Kgaa 950 34,773
Metro AG 1,530 108,159
Munich Reinsurance AG:
warrants 7/1/02 (a) 16 609
(Reg.) 466 94,379
(RFD) (a) 466 93,351
Preussag AG 100 48,207
RWE AG 2,350 103,765
SAP AG (Systeme Anwendungen 350 119,143
Produkte)
Schering AG 350 45,113
SGL Carbon AG 50 2,381
Siemens AG 3,150 197,954
Thyssen AG 250 50,743
Veba AG 2,700 143,688
Viag AG 150 80,538
Volkswagen AG 1,600 103,194
3,820,655
HONG KONG - 1.4%
Bank of East Asia Ltd. 5,267 7,410
Cathay Pacific Airways Ltd. 13,000 14,514
Cheung Kong Holdings Ltd. 11,000 74,895
CLP Holdings Ltd. 11,500 54,179
Hang Lung Development Co. 5,000 4,808
Ltd.
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
HONG KONG - CONTINUED
Hang Seng Bank Ltd. 8,900 $ 72,372
Hong Kong & China Gas Co. 19,200 22,304
Ltd.
Hong Kong & China Gas Co. 600 22
Ltd. warrants 9/30/99 (a)
Hong Kong & Shanghai Hotels 5,000 3,388
Ltd. (The)
Hong Kong Telecommunications 43,834 73,696
Ltd.
Hopewell Holdings Ltd. 2,200 965
Hutchison Whampoa Ltd. 18,000 124,879
Hysan Development Ltd. 4,047 4,858
Hysan Development Ltd. 400 1
warrants 4/30/99 (a)
Johnson Electric Holdings 4,000 10,584
Ltd.
New World Development Co. 9,620 17,694
Ltd.
Shangri-La Asia Ltd. 6,000 4,298
Sino Land Co. Ltd. 12,869 6,146
South China Morning Post 8,000 3,433
Holdings
Sun Hung Kai Properties Ltd. 11,215 76,359
Swire Pacific Ltd. Class A 5,500 22,504
Television Broadcasts Ltd. 2,000 5,950
Wharf Holdings Ltd. 8,000 9,242
Wharf Holdings Ltd. warrants 400 16
12/31/99 (a)
614,517
IRELAND - 0.4%
Allied Irish Banks PLC 4,379 76,280
CRH PLC 1,978 36,855
Independent Newspapers PLC 982 3,708
Irish Life PLC 921 9,301
Irish Permanent PLC 492 7,865
Kerry Group PLC Class A 611 7,881
Ryanair Holdings PLC (a) 876 6,567
Smurfit (Jefferson) Group PLC 3,875 8,331
156,788
ITALY - 3.7%
Alitalia Linee Aeree Italiane 9,500 35,674
Class A
Assicurazioni Generali Spa 4,905 191,543
Banca Commerciale Italiana Spa 9,471 59,591
Banca Intesa Spa 8,137 44,828
Benetton Group Spa 7,040 11,526
Bulgari Spa 1,231 6,171
Edison Spa 3,698 34,198
Eni Spa sponsored ADR 37,447 219,679
Fiat Spa 18,442 56,016
Istituto Nazionale Delle 20,657 49,990
Assicurazioni Spa
Italcementi Spa 721 8,191
Italgas Spa 2,725 13,901
La Rinascente Spa 879 7,801
Mediaset Spa 5,355 50,862
Mediobanca Spa 2,005 23,051
Mediobanca Spa warrants 334 878
12/31/00 (a)
SHARES VALUE (NOTE 1)
Montedison Spa 23,826 $ 23,886
Olivetti & Co. Spa 10,225 31,565
Parmalat Finanziaria Spa 5,994 8,485
Pirelli Spa 8,189 23,934
Riunione Adriatica di Sicurta 1,267 13,381
(RSA) Spa
San Paolo-IMI Spa 7,464 130,003
Sirti Spa 981 5,862
Telecom Italia Mobile Spa 31,493 213,986
Telecom Italia Spa 17,783 189,274
Unicredito Italiano Spa 23,563 122,721
Unione Immobiliare Spa (a) 20,657 11,389
1,588,386
JAPAN - 18.6%
77 Bank Ltd. 3,000 26,686
Acom Co. Ltd. 600 35,330
Advantest Corp. 1,100 83,251
Ajinomoto Co., Inc. 3,000 32,684
Alps Electric Co. Ltd. 1,000 17,304
Amada Co. Ltd. 2,000 9,811
Aoyama Trading Co. Ltd. 600 16,128
Asahi Bank Ltd. 14,000 61,151
Asahi Breweries Ltd. 3,000 39,614
Asahi Chemical Industry Co. 9,000 43,016
Ltd.
Asahi Glass Co. Ltd. 7,000 46,392
Bank of Tokyo-Mitsubishi Ltd. 25,000 300,294
Bank of Yokohama Ltd. 5,000 9,870
Bridgestone Corp. 5,000 111,508
Canon, Inc. 5,000 106,678
Casio Computer Co. Ltd. 1,000 6,644
Chiba Bank 5,000 18,480
Chugai Pharmaceutical Co. 1,000 9,534
Ltd.
Citizen Watch Co. Ltd. 1,000 6,745
Cosmo Oil Co. Ltd. 3,000 4,234
Credit Saison Co. Ltd. 700 14,670
Dai Ei, Inc. 3,000 7,434
Dai Nippon Printing Co. Ltd. 4,000 55,472
Daiichi Pharmaceutical Co. 2,000 30,340
Ltd.
Daikin Industries Ltd. 1,000 7,980
Dainippon Ink & Chemicals, 3,000 8,895
Inc.
Daiwa House Industry Co. Ltd. 3,000 30,643
Daiwa Securities Co. Ltd. 8,000 32,927
Denso Corp. 5,000 86,518
East Japan Railway Co. 23 137,942
Ebara Corp. 1,000 10,365
Eisai Co. Ltd. 2,000 37,295
Fanuc Ltd. 1,300 48,375
Fuji Bank Ltd. 17,000 66,686
Fuji Photo Film Co. Ltd. 3,000 109,870
Fujikura Ltd. 3,000 16,128
Fujitsu Ltd. 10,000 124,318
Furukawa Electric Co. Ltd. (a) 3,000 11,214
Gunma Bank Ltd. 2,000 14,952
Hankyu Corp. (a) 4,000 16,766
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Hitachi Ltd. 19,000 $ 119,698
Hitachi Zosen Corp. (a) 5,000 6,090
Honda Motor Co. Ltd. 5,000 189,688
House Foods Corp. 1,000 14,649
Hoya Corp. 1,000 48,719
Industrial Bank of Japan Ltd. 15,000 74,717
(The)
Ito-Yokado Co. Ltd. 2,000 116,254
Itochu Corp. (a) 9,000 15,724
Japan Airlines Co. Ltd. 11,000 27,997
Japan Energy Corp. 6,000 5,342
Joyo Bank Ltd. 2,000 7,039
Jusco Co. Ltd. 2,000 32,272
Kajima Corp. 4,000 9,576
Kandenko Co. Ltd. 1,000 6,485
Kaneka Corp. (a) 3,000 22,176
Kansai Electric Power Co., 5,500 104,410
Inc.
Kao Corp. 3,000 59,723
Kawasaki Heavy Industries 6,000 11,441
Ltd.
Kawasaki Steel Corp. 19,000 29,525
Keihin Electric Express 1,000 3,066
Railway
Kikkoman Corp. 2,000 12,365
Kinden Corp. 2,000 26,207
Kinki Nippon Railway Co. Ltd. 9,000 47,325
(a)
Kirin Brewery Co. Ltd. 6,000 70,811
Kokuyo Co. Ltd. 1,000 14,826
Komatsu Ltd. 6,000 29,282
Konica Corp. 1,000 4,192
Kubota Corp. 6,000 14,717
Kuraray Co. Ltd. 2,000 19,605
Kurita Water Industries Ltd. 1,000 13,146
Kyocera Corp. 700 32,927
Kyowa Hakko Kogyo Co. Ltd. 1,000 4,712
Makita Corp. 1,000 9,551
Marubeni Corp. (a) 4,000 6,619
Marui Co. Ltd. 2,000 32,591
Matsushita Electric 11,000 180,881
Industrial Co. Ltd.
Minebea Co. Ltd. 2,000 19,824
Mitsubishi Chemical Corp. 13,000 31,667
Mitsubishi Corp. 8,000 43,007
Mitsubishi Electric Corp. 10,000 29,903
Mitsubishi Estate Co. Ltd. 7,000 68,853
Mitsubishi Gas Chemical Co., 3,000 7,761
Inc.
Mitsubishi Heavy Industries 20,000 74,087
Ltd.
Mitsubishi Logistics Corp. 1,000 11,264
Mitsubishi Materials Corp. 5,000 8,736
Mitsubishi Rayon Co. Ltd. 3,000 7,081
Mitsubishi Trust & Banking 7,000 59,269
Corp.
Mitsui & Co. Ltd. 9,000 48,837
Mitsui Fudosan Co. Ltd. (a) 4,000 31,953
Mitsui Marine & Fire 5,000 23,562
Insurance Co. Ltd.
Mitsui Mining & Smelting Co. 4,000 18,278
Ltd.
Mitsui OSK Lines Ltd. 2,000 3,108
SHARES VALUE (NOTE 1)
Mitsui Trust & Banking Co. 3,000 $ 2,948
Ltd.
Mitsukoshi Ltd. 1,000 2,402
Murata Manufacturing Co. Ltd. 1,000 44,519
Mycal Corp. 1,000 5,586
Nagoya Railroad Co. Ltd. 6,000 20,210
Nankai Electric Railway Co. 1,000 4,679
Ltd.
NEC Corp. 8,000 80,504
NGK Insulators Ltd. 2,000 22,864
NGK Spark Plug Co. Ltd. 1,000 10,962
Nichido Fire & Marine 1,000 5,351
Insurance Co. Ltd.
Nikon Corp. (a) 1,000 13,944
Nippon Computer Systems Corp. 1,000 11,365
Nippon Express Co. Ltd. 6,000 29,937
Nippon Fire & Marine 1,000 3,074
Insurance Co. Ltd.
Nippon Meat Packers, Inc. 1,000 13,532
Nippon Oil Co. Ltd. 8,000 28,022
Nippon Paper Industries Co. 6,000 22,881
Ltd.
Nippon Steel Corp. 35,000 61,151
Nippon Telegraph & Telephone 67 550,407
Corp.
Nippon Yusen Kabushiki Kaisha 5,000 16,800
Nishimatsu Construction 2,000 9,643
Nissan Motor Co. Ltd. (a) 14,000 54,448
Nisshinbo Industries, Inc. 1,000 3,318
Nissin Food Products Co. Ltd. 1,000 21,084
Nitto Denko Corp. 1,000 14,918
NKK Corp. 13,000 7,644
Nomura Securities Co. Ltd. 11,000 90,181
NSK Ltd. 1,000 4,528
Obayashi Corp. 3,000 13,482
Odakyu Electric Railway Co. 3,000 10,080
Ltd.
Oji Paper Co. Ltd. 6,000 29,534
Omron Corp. 2,000 21,672
Onward Kashiyama & Co. Ltd. 1,000 11,004
Orix Corp. (a) 1,000 62,327
Osaka Gas Co. Ltd. (a) 12,000 35,783
Pioneer Electronic Corp. 1,000 17,766
Rohm Co. Ltd. 1,000 97,438
Sakura Bank Ltd. 22,000 47,677
Sankyo Co. Ltd. 3,000 64,259
Sanwa Shutter Corp. 1,000 4,410
Sanyo Electric Co. Ltd. 12,000 33,767
Sapporo Breweries Ltd. 1,000 4,141
Secom Ltd. 1,000 77,362
Sega Enterprises 200 3,763
Sekisui Chemical Co. Ltd. 4,000 25,200
Sekisui House Ltd. 4,000 40,823
Sharp Corp. 6,000 58,362
Shimano, Inc. 1,000 22,932
Shimizu Construction Co. Ltd. 6,000 19,353
(a)
Shin-Etsu Chemical Co. Ltd. 2,000 46,703
Shionogi & Co. Ltd. 1,000 7,719
Shiseido Co. Ltd. 2,000 24,192
Shizuoka Bank Ltd. 4,000 48,013
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
JAPAN - CONTINUED
Showa Denko KK 2,000 $ 1,680
SMC Corp. 1,000 80,638
Snow Brand Milk Products Co. 2,000 9,660
Ltd.
Sony Corp. 2,300 171,781
Sumitomo Bank Ltd. Japan 17,000 204,343
Sumitomo Chemical Co. Ltd. 10,000 36,203
Sumitomo Corp. 7,000 35,044
Sumitomo Electric Industries 4,000 41,966
Ltd.
Sumitomo Heavy Industries Co. 3,000 6,678
Ltd.
Sumitomo Marine and Fire 3,000 16,657
Insurance Co. Ltd.
Sumitomo Metal Industries 18,000 17,992
Ltd.
Sumitomo Metal Mining Co. 3,000 10,911
Ltd.
Taiheiyo Cement Corp. 3,000 7,938
Taisei Corp. 4,000 6,921
Taisho Pharmaceutical Co. 2,000 52,919
Ltd.
Takashimaya Co. Ltd. 1,000 7,493
Takeda Chemical Industries 5,000 171,357
Ltd.
Teijin Ltd. 4,000 14,313
Tobu Railway Co. Ltd. 2,000 5,729
Toho Co. Ltd. 100 12,171
Tohoku Electric Power Co., 3,000 46,140
Inc.
Tokai Bank Ltd. 12,000 58,564
Tokio Marine & Fire Insurance 8,000 85,342
Co. Ltd. (The)
Tokyo Broadcasting System, 1,000 10,836
Inc.
Tokyo Dome Corp. (a) 1,000 5,124
Tokyo Electric Power Co. 7,600 152,894
Tokyo Electron Ltd. 1,000 45,359
Tokyo Gas Co. Ltd. 11,000 25,687
Tokyo Style Co. Ltd. 1,000 10,349
Tokyu Corp. 4,000 9,643
Toppan Printing Co. Ltd. 4,000 46,669
Toray Industries, Inc. 8,000 34,876
Tostem Corp. 1,000 15,960
Toto Ltd. 2,000 14,297
Toyo Seikan Kaisha Ltd. 1,000 18,984
Toyoda Automatic Loom Works 2,000 33,683
Ltd.
Toyota Motor Corp. 20,000 520,790
Unified-Charm Corp. 1,000 42,755
UNY Co. Ltd. 1,000 15,968
Wacoal Corp. 1,000 10,508
Yamaguchi Bank Ltd. (The) 1,000 9,828
Yamaha Corp. 1,000 9,215
Yamaichi Securities Co. Ltd. 3,000 5,562
(a)
Yamanouchi Pharmaceutical Co. 2,000 60,815
Ltd.
Yamato Transport Co. Ltd. 2,000 26,829
Yamazaki Baking Co. Ltd. 1,000 13,406
7,992,823
NETHERLANDS - 6.0%
ABN AMRO Holding NV 8,608 176,045
Aegon NV 3,391 355,539
SHARES VALUE (NOTE 1)
Akzo Nobel NV 1,777 $ 67,688
Buhrmann NV 236 4,436
Elsevier NV 3,862 63,016
Getronics NV 379 16,609
Hagemeyer NV 331 10,254
Heineken NV 1,955 102,596
IHC Caland NV 106 3,436
ING Groep NV 5,490 308,689
KLM Royal Dutch Airlines NV 221 6,189
Koninklijke Ahold NV 3,765 145,282
Koninklijke Hoogovens NV 103 3,117
Koninklijke KPN NV 2,898 152,723
Oce NV, Venio 451 12,605
Philips Electronics NV 2,187 152,270
(Bearer)
Royal Dutch Petroleum Co. 12,591 552,430
(Hague Registry)
Stork NV 78 1,453
TNT Post Group NV 2,917 100,178
Unilever NV 3,747 271,411
Wolters Kluwer NV 357 69,075
2,575,041
NEW ZEALAND - 0.2%
Brierley Investments Ltd. 9,835 2,261
Carter Holt Harvey Ltd. 10,949 10,012
Fletcher Challenge Ltd. 1,314 2,280
(Energy Division)
Lion Nathan Ltd. 3,755 9,006
Telecom Corp. of New Zealand 10,085 51,118
Ltd.
74,677
NORWAY - 0.3%
Aker AS Series A 300 3,232
Bergesen d y AS Class A 200 2,738
Christiania Bank Og 3,550 12,778
Kreditkasse
Den Norske Bank ASA Class A 3,300 11,627
Free shares
Elkem A/S 200 2,725
Kvaerner ASA 150 2,937
Merkantildata 650 6,755
Norsk Hydro AS 1,350 45,939
Norske Skogindustrier AS 100 2,985
Class A
Orkla-Borregaard AS 1,000 13,434
Orkla-Borregaard AS Series B 200 2,332
(non-vtg.)
Petroleum Geo-Services ASA (a) 600 6,844
Schibsted AS Series B 450 5,333
Storebrand ASA (a) 1,800 14,030
Tomra Systems AS 250 8,713
142,402
PORTUGAL - 0.6%
Banco Comercial Portuges SA 1,018 30,741
Banco Espirito Santo e 697 19,956
Comercial de Lisboa SA
BPI-SGPS SA (Reg.) 300 10,458
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
PORTUGAL - CONTINUED
Brisa Auto-Estradas de 400 $ 20,665
Portugal Sarl
Cimpor-Cimentos de Portugal SA 500 14,002
Electricidade de Portugal SA 3,500 75,786
Jeronimo Martins, SGPS SA 300 12,287
Jeronimo Martins, SGPS SA 100 551
Portugal Telecom SA 1,000 49,183
SONAE Industria e 200 7,766
Investimentos SA
241,395
SINGAPORE - 0.6%
City Developments Ltd. 5,000 20,906
Cycle & Carriage Ltd. 1,000 3,659
DBS Land Ltd. 4,000 4,948
Development Bank of Singapore 3,600 26,132
Ltd. (For. Reg.)
Fraser & Neave Ltd. 1,000 3,397
Keppel Corp. Ltd. 3,000 6,969
Oversea-Chinese Banking Corp. 5,071 33,866
(For. Reg.)
Parkway Holdings Ltd. 2,000 3,508
Sembcorp Industries Ltd. (a) 6,969 7,568
Singapore Airlines Ltd. (For. 5,000 36,876
Reg.)
Singapore Press Holdings Ltd. 2,048 23,311
Singapore Technologies 8,000 6,876
Engineering Ltd.
Singapore Telecommunications 31,000 44,106
Ltd.
United Industrial Corp. Ltd. 7,000 2,886
United Overseas Bank Ltd. 4,000 23,461
(For. Reg.)
248,469
SPAIN - 3.0%
Acerinox SA (Reg.) 245 6,466
Aguas de Barcelon SA 300 18,787
Aguas de Barcelon SA (a) 1 61
Argentaria Caja Postal y 3,144 75,564
Banco Hipotecario de Espana
SA
Autopistas Concesionaria 2,158 30,739
Espanola SA
Banco Bilbao Vizcaya SA (Reg.) 10,872 161,696
Banco Central 4,747 56,889
Hispanoamericano SA
Banco Santander SA 7,011 139,906
Corporacion Financiera Alba SA 61 8,844
Corporacion Mapfre Compania 138 3,028
Internacional de Reaseguros
SA (Reg.)
Endesa SA 5,083 135,281
FOCSA (Fomento Construcciones 530 37,747
y Contratas SA)
Gas Natural SDG SA Series E 934 93,243
Iberdrola SA 5,507 86,518
Repsol SA 1,830 96,642
Tabacalera SA Series A 1,450 32,676
Telefonica SA 5,850 268,304
Union Electrica Fenosa SA 862 14,721
SHARES VALUE (NOTE 1)
Vallehermoso SA 600 $ 7,349
Zardoya Otis SA 210 6,170
1,280,631
SWEDEN - 2.7%
ABB AB:
Series A 4,400 50,155
Series B 800 9,070
AGA AB Series A 1,000 13,237
Astra AB:
Class A 8,100 160,481
Class B 1,800 35,741
Atlas Copco AB:
Series A 900 22,338
Series B 200 4,915
Drott AB Series B 600 5,148
Electrolux AB 2,500 47,649
Ericsson (L.M.) Telefon AB 11,600 301,600
Class B
ForeningsSparbanken AB Series 1,900 43,665
A
Hennes & Mauritz AB Class B 1,300 100,702
NetCom Systems AB Series B (a) 700 26,855
OM Gruppen AB 300 3,934
Sandvik AB:
Series A 1,000 19,243
Series B 200 3,849
Securitas AB Class B 2,000 33,216
Skandia Foersaekrings AB 3,400 62,718
Skandinaviska Enskilda Banken 4,000 44,860
Class A
Skanska AB Class B 600 19,783
SKF AB 400 5,540
SSAB Swedish Steel Series A 300 3,181
Svenska Cellulosa AB (SCA) 1,300 26,052
Class B
Svenska Handelsbanken 1,300 46,208
Swedish Match Co. 1,100 3,654
Trelleborg AB Class B 300 2,703
Volvo AB:
Class A 900 23,000
Class B 1,900 48,450
WM-Data AB Series B 400 17,405
1,185,352
SWITZERLAND - 7.5%
ABB AG 50 61,161
Adecco SA (Bearer) 100 52,522
Alusuisse Lonza Holding Ltd., 40 44,534
Zurich (Reg.) (a)
Credit Suisse Group (Reg.) 1,550 241,016
Georg Fischer AG (Reg.) 20 6,565
Holderbank Financiere Glarus 50 12,612
AG
Holderbank Financiere Glarus 30 31,265
AG (Bearer)
Kuoni Reisen Holding AG Class 2 8,155
B (Reg.)
Nestle SA (Reg.) 230 434,727
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
SWITZERLAND - CONTINUED
Novartis AG:
(Bearer) 35 $ 61,437
(Reg.) 360 632,426
Roche Holding AG 10 178,956
Roche Holding AG 41 519,938
participation certificates
SAirGroup (Reg.) 50 10,781
SGS (Societe Generale de 5 3,766
Surveillance) Holding SA
Sulzer AG (Reg.) 20 11,818
Swatch Group AG (The) (Bearer) 25 15,895
Swiss Reinsurance Co. (Reg.) 85 190,619
Swisscom AG 400 158,397
Union Bank of Switzerland 1,241 386,794
Valora Holding AG 20 4,430
Zurich Allied AG (Reg.) (a) 280 186,151
3,253,965
UNITED KINGDOM - 18.9%
Abbey National, PLC 7,254 145,003
Allied Zurich PLC (a) 7,341 108,615
Anglian Water PLC 960 11,234
Arjo Wiggins Appleton PLC 3,168 6,157
Associated British Foods PLC 4,795 37,164
BAA PLC 5,908 66,578
Barclays PLC 7,857 209,829
Barratt Developments PLC 1,067 4,464
Bass PLC 3,946 54,810
BBA Group PLC 1,586 9,610
BG PLC 20,278 118,646
Blue Circle Industries PLC 5,223 25,620
BOC Group PLC 2,909 39,403
Boots Co. PLC 4,498 72,283
BP Amoco PLC 29,741 421,331
BP Amoco PLC sponsored ADR 3,188 270,980
BPB Industries PLC 2,861 10,938
British Aerospace PLC 8,984 57,101
British Airways PLC 5,347 39,513
British American Tobacco PLC 7,341 67,017
British Land Co. PLC 3,152 26,173
British Sky Broadcasting 9,262 85,296
Group PLC
British Steel PLC 7,267 14,307
British Telecommunications PLC 32,523 571,184
BTR Siebe PLC 21,455 89,764
Burmah Castrol PLC 779 10,177
Cable & Wireless PLC 12,577 172,074
Cadbury Schweppes PLC 4,993 76,756
Caradon PLC 2,172 5,327
Carlton Communications PLC 3,481 34,317
Centrica PLC (a) 19,975 37,383
CGU PLC 6,859 101,044
Coats Viyella PLC 2,748 1,663
Compass Group PLC 3,424 42,208
SHARES VALUE (NOTE 1)
Diageo PLC 18,447 $ 202,262
Electrocomponents PLC 1,584 9,268
EMI Group PLC 3,622 26,751
FKI PLC 2,190 5,652
General Electric Co. PLC 14,183 113,222
GKN PLC Class L 3,740 50,839
Glaxo Wellcome PLC 17,844 571,567
Granada Group PLC 4,419 89,148
Great Universal Stores PLC 4,995 63,816
Class A
Guardian Royal Exchange PLC 3,851 21,838
Halifax PLC 12,849 158,391
Hammerson PLC 827 5,263
Hanson PLC 3,638 29,559
HSBC Holdings PLC:
( Reg.) 9,316 266,863
Ord. 4,287 125,072
Hyder PLC 584 7,447
ICI (Imperial Chemical 3,656 32,104
Industries) PLC Class L
IMI plc 1,347 4,880
Jarvis PLC 1,041 8,928
Johnson Matthey PLC 851 6,238
Kingfisher PLC 6,903 87,086
Ladbroke Group PLC 6,065 28,292
Land Securities PLC 2,868 37,239
Lasmo PLC 2,944 5,663
Legal & General Group Ltd. 6,816 85,114
Lloyds TSB Group PLC 26,483 379,735
LucasVarity PLC 8,167 37,115
Marks & Spencer PLC 14,853 100,237
MEPC PLC 1,272 9,522
Misys PLC 1,745 16,923
National Grid Group PLC 8,161 59,000
National Power PLC (b) 6,311 50,279
Next PLC 1,139 13,328
Pearson PLC 2,787 61,206
Peninsular & Oriental Steam 3,785 44,504
Navigation Co.
Pilkington PLC 4,076 4,084
Provident Financial Group PLC 929 14,341
Prudential Corp. PLC 9,986 135,264
Railtrack PLC Class L 2,755 68,529
Rank Group PLC Class L 2,483 9,473
Reed International PLC 5,789 55,748
Rentokil Initial PLC 15,200 112,325
Reuters Group PLC 7,165 99,981
Rexam PLC 2,874 9,168
Rio Tinto PLC (Reg.) 5,275 68,365
RMC Industries, Inc. 1,538 16,752
Rolls-Royce PLC 8,411 36,774
Royal & Sun Alliance 7,864 66,497
Insurance Group PLC
Royal Bank of Scotland Group 3,570 69,531
PLC
Safeway PLC 5,061 21,945
COMMON STOCKS - CONTINUED
SHARES VALUE (NOTE 1)
UNITED KINGDOM - CONTINUED
Sainsbury (J.) PLC 9,348 $ 53,945
Schroders PLC 1,500 30,946
Scottish & Newcastle PLC 2,167 23,795
Scottish & Southern Energy PLC 1,428 13,242
Scottish Power PLC 6,131 56,658
Slough Estates PLC 1,512 8,047
SmithKline Beecham PLC 27,929 397,291
Smiths Industries PLC 1,099 16,674
Stagecoach Holdings PLC 4,265 16,135
Tarmac PLC 3,980 6,858
Tate & Lyle PLC 1,628 11,874
Taylor Woodrow PLC 1,762 4,788
Tesco PLC 34,969 99,358
Thames Water PLC 2,082 34,342
TI Group PLC 1,730 10,926
Unigate PLC 800 5,476
Unilever PLC 16,709 162,912
United Utilities PLC 2,898 36,769
Vickers PLC 678 1,619
Vodafone Group PLC 14,656 267,014
Williams PLC Class L 4,176 25,973
Wolseley PLC 4,255 27,351
Zeneca Group PLC 4,459 185,699
8,144,789
TOTAL COMMON STOCKS 37,746,602
(Cost $34,626,953)
NONCONVERTIBLE PREFERRED
STOCKS - 0.6%
AUSTRALIA - 0.2%
News Corp. Ltd. 10,902 71,053
GERMANY - 0.3%
RWE AG (non-vtg.) 700 20,451
SAP AG (Systeme Anwendungen 250 95,366
Produkte)
Volkswagen AG 500 19,569
135,386
ITALY - 0.1%
Fiat Spa 4,324 6,631
Fiat Spa (savings share) 1,857 3,024
Telecom Italia Mobile Spa 7,910 31,988
Telecom Italia Spa Risp 2,675 18,214
59,857
TOTAL NONCONVERTIBLE 266,296
PREFERRED STOCKS
(Cost $244,572)
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
GOVERNMENT OBLIGATIONS - 11.7%
PRINCIPAL AMOUNT VALUE (NOTE 1)
UNITED STATES OF AMERICA -
11.7%
U.S. Treasury Bills, yield at $ 5,084,000 $ 5,055,602
date of purchase 4.25% to
4.7% 3/11/99 to 5/20/99 (c)
(Cost $5,056,199)
TOTAL INVESTMENT IN $ 43,068,500
SECURITIES - 100%
(Cost $39,927,724)
FUTURES CONTRACTS
EXPIRATION DATE UNDERLYING FACE AMOUNT AT VALUE UNREALIZED GAIN/(LOSS)
PURCHASED
2 All Ordinary Index Mar. 1999 $ 92,304 $ (751)
Contracts (Australia)
63 CAC 40 Index Contracts Mar. 1999 300,095 20,341
(France)
8 CAC 40 Index Contracts Mar. 1999 370,169 (11,597)
(France)
3 DAX 30 Index Contracts Mar. 1999 429,360 (17,672)
(Germany)
1 DAX 30 Index Contracts Jun. 1999 135,719 (3,478)
(Germany)
17 FTSE 100 Index Contracts Mar. 1999 1,730,337 84,808
(United Kingdom)
5 Hang Seng Index Contracts Mar. 1999 317,162 13,811
(Hong Kong)
2 Ibex Index Contracts (Spain) Mar. 1999 221,740 1,299
3 Mib 30 Index Contracts Mar. 1999 628,746 25,062
(Italy)
3 Nikkei 225 Index Contracts Mar. 1999 215,550 12,625
(Japan)
23 Nikkei 300 Index Contracts Mar. 1999 443,639 13,675
(Japan)
4 Topix Index Contracts (Japan) Mar. 1999 392,594 9,996
$ 5,277,415 $ 148,119
THE FACE VALUE OF FUTURES PURCHASED AS A PERCENTAGE OF TOTAL
INVESTMENTS IN SECURITIES - 12.3%
</TABLE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
FORWARD FOREIGN CURRENCY
CONTRACTS
SETTLEMENT DATE VALUE UNREALIZED GAIN/(LOSS)
CONTRACTS TO BUY
1,220,705 EUR 3/5/99 $ 1,346,296 $ (47,621)
873,957 GBP 3/5/99 1,400,748 (37,400)
92,059,187 JPY 3/5/99 773,981 (25,123)
</TABLE>
TOTAL CONTRACTS TO BUY $ 3,521,025 $ (110,144)
(Payable amount $3,631,169)
THE VALUE OF CONTRACTS TO BUY AS A PERCENTAGE OF TOTAL INVESTMENTS IN
SECURITIES - 8.2%
CURRENCY ABBREVIATIONS
EUR - Euro
GBP - British pound
JPY - Japanese yen
LEGEND
(a) Non-income producing
(b) Security exempt from registration under Rule 144A of the
Securities Act of 1933. These securities may be resold in
transactions exempt from registration, normally to qualified
institutional buyers. At the period end, the value of these securities
amounted to $50,279 or 0.1% of net assets.
(c) A security or a portion of the security was pledged to cover
margin requirements for future contacts. At the period end, the value
of securities pledged amounted to $370,500.
MARKET SECTOR DIVERSIFICATION (UNAUDITED)
As a Percentage of Total Value of Investments in Securities
AEROSPACE & DEFENSE 0.3%
BASIC INDUSTRIES 3.9
CONSTRUCTION & REAL ESTATE 2.8
DURABLES 5.9
ENERGY 4.8
FINANCE 21.4
GOVERNMENT OBLIGATIONS 11.7
HEALTH 8.3
HOLDING COMPANIES 0.1
INDUSTRIAL MACHINERY & 4.8
EQUIPMENT
MEDIA & LEISURE 2.5
NONDURABLES 5.7
PRECIOUS METALS 0.1
RETAIL & WHOLESALE 4.1
SERVICES 1.8
TECHNOLOGY 4.6
TRANSPORTATION 2.3
UTILITIES 14.9
100.0%
OTHER INFORMATION
Purchases and sales of securities, other than short-term securities,
aggregated $15,156,061 and $741,120, respectively.
The market value of futures contracts opened and closed during the
period amounted to $24,885,606 and $21,401,347, respectively.
The fund participated in the security lending program. At period end,
the value of securities loaned amounted to $604,423. The fund received
cash collateral of $399,375 which was invested in the Bankers Trust
Institutional Daily Asset Fund. The fund also received non-cash
collateral of $246,650 which represents U.S. Treasury obligations.
INCOME TAX INFORMATION
At February 28, 1999, the aggregate cost of investment securities for
income tax purposes was $39,968,615. Net unrealized appreciation
aggregated $3,099,885, of which $5,597,897 related to appreciated
investment securities and $2,498,012 related to depreciated investment
securities.
At February 28, 1999, the fund had a capital loss carryforward of
approximately $446,000 will expire on February 28, 2007.
The fund intends to elect to defer to its fiscal year ending February
29, 2000 approximately $86,000 of losses recognized during the period
November 1, 1998 to February 28, 1999.
The amounts per share which represent income derived from sources
within, and taxes paid to, foreign countries or possessions of the
United States are $.397 and $.041, respectively, for the dividend paid
December 21, 1998.
SPARTAN INTERNATIONAL INDEX FUND
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
FEBRUARY 28, 1999
ASSETS
Investment in securities, at $ 43,068,500
value (cost $39,927,724) -
See accompanying schedule
Cash 269
Foreign currency held at 307,548
value (cost $313,492)
Receivable for investments 37,706
sold
Unrealized appreciation on 3,416
foreign currency contracts
Receivable for fund shares 255,584
sold
Dividends receivable 60,404
Interest receivable 343
Purchase fees receivable 2,568
Investment of cash collateral 399,375
received for securities
loaned
Receivable from investment 3,866
adviser for expense
reductions
TOTAL ASSETS 44,139,579
LIABILITIES
Payable for investments $ 275,007
purchased
Unrealized depreciation on 113,560
foreign currency contracts
Payable for closed foreign 4,578
currency contracts
Payable for fund shares 130,312
redeemed
Payable for daily variation 6,286
on futures margin
Other payables and accrued 34,409
expenses
Collateral on securities 399,375
loaned, at value
TOTAL LIABILITIES 963,527
NET ASSETS $ 43,176,052
Net Assets consist of:
Paid in capital $ 40,450,962
Undistributed net investment 135,758
income
Accumulated undistributed net (584,918)
realized gain (loss) on
investments and foreign
currency transactions
Net unrealized appreciation 3,174,250
(depreciation) on
investments and assets and
liabilities in foreign
currencies
NET ASSETS, for 1,497,237 $ 43,176,052
shares outstanding
NET ASSET VALUE, offering $28.84
price and redemption price
per share ($43,176,052
(divided by) 1,497,237
shares) A
A OFFERING PRICE PER SHARE DOES NOT INCLUDE THE EFFECT OF THE PURCHASE
FEE.
STATEMENT OF OPERATIONS
YEAR ENDED FEBRUARY 28, 1999
INVESTMENT INCOME $ 583,265
Dividends
Interest (including income on 143,815
securities loaned of $6,583)
727,080
Less foreign taxes withheld (54,880)
TOTAL INCOME 672,200
EXPENSES
Management fee and $ 118,587
sub-advisory fees
Transfer agent fees 40,925
Accounting fees 60,345
Non-interested trustees' 134
compensation
Registration fees 75,645
Audit 37,354
Legal 389
Miscellaneous 87
Total expenses before 333,466
reductions
Expense reductions (212,076) 121,390
NET INVESTMENT INCOME 550,810
REALIZED AND UNREALIZED GAIN
(LOSS)
Net realized gain (loss) on:
Investment securities (205,030)
Foreign currency transactions (2,242)
Futures contracts (188,109) (395,381)
Change in net unrealized
appreciation (depreciation)
on:
Investment securities 1,289,451
Assets and liabilities in (116,850)
foreign currencies
Futures contracts 88,410 1,261,011
NET GAIN (LOSS) 865,630
NET INCREASE (DECREASE) IN $ 1,416,440
NET ASSETS RESULTING FROM
OPERATIONS
<TABLE>
<CAPTION>
<S> <C> <C>
STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET YEAR ENDED FEBRUARY 28, 1999 NOVEMBER 5, 1997
ASSETS (COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1998
Operations Net investment $ 550,810 $ 94,151
income
Net realized gain (loss) (395,381) 96,652
Change in net unrealized 1,261,011 1,913,239
appreciation (depreciation)
NET INCREASE (DECREASE) IN 1,416,440 2,104,042
NET ASSETS RESULTING FROM
OPERATIONS
Distributions to shareholders (612,100) (50,614)
From net investment income
From net realized gain (88,646) -
In excess of net realized (44,030) -
gain
TOTAL DISTRIBUTIONS (744,776) (50,614)
Share transactions Net 31,517,056 25,688,131
proceeds from sales of shares
Reinvestment of distributions 714,996 50,614
Cost of shares redeemed (14,735,826) (3,363,303)
NET INCREASE (DECREASE) IN 17,496,226 22,375,442
NET ASSETS RESULTING FROM
SHARE TRANSACTIONS
Purchase fees 321,951 257,341
TOTAL INCREASE (DECREASE) 18,489,841 24,686,211
IN NET ASSETS
NET ASSETS
Beginning of period 24,686,211 -
End of period (including $ 43,176,052 $ 24,686,211
under (over) distribution of
net investment income of
$135,758 and $51,543,
respectively)
OTHER INFORMATION
Shares
Sold 1,096,066 1,022,450
Issued in reinvestment of 24,926 2,076
distributions
Redeemed (516,971) (131,310)
Net increase (decrease) 604,021 893,216
</TABLE>
FINANCIAL HIGHLIGHTS
YEARS ENDED FEBRUARY 28, 1999 1998 E
SELECTED PER-SHARE DATA
Net asset value, beginning of $ 27.64 $ 25.00
period
Income from Investment
Operations
Net investment income D .46 .11
Net realized and unrealized 1.08 2.29
gain (loss)
Total from investment 1.54 2.40
operations
Less Distributions
From net investment income (.48) (.06)
From net realized gain (.09) -
In excess of net realized (.04) -
gain
Total distributions (.61) (.06)
Purchase fees added to paid .27 .30
in capital
Net asset value, end of period $ 28.84 $ 27.64
TOTAL RETURN B, C 6.58% 10.83%
RATIOS AND SUPPLEMENTAL DATA
Net assets, end of period $ 43,176 $ 24,686
(000 omitted)
Ratio of expenses to average .36% F .35% A, F
net assets
Ratio of net investment 1.62% 1.43% A
income to average net assets
Portfolio turnover rate 2% 2% A
A ANNUALIZED B TOTAL RETURNS
FOR PERIODS OF LESS THAN ONE
YEAR ARE NOT ANNUALIZED. C
THE TOTAL RETURNS WOULD HAVE
BEEN LOWER HAD CERTAIN
EXPENSES NOT BEEN REDUCED
DURING THE PERIODS SHOWN. D
NET INVESTMENT INCOME PER
SHARE HAS BEEN CALCULATED
BASED ON AVERAGE SHARES
OUTSTANDING DURING THE
PERIOD. E FOR THE PERIOD
NOVEMBER 5, 1997
(COMMENCEMENT OF OPERATIONS)
TO FEBRUARY 28, 1998. F FMR
AGREED TO REIMBURSE A
PORTION OF THE FUND'S
EXPENSES DURING THE PERIOD.
WITHOUT THIS REIMBURSEMENT,
THE FUND'S EXPENSE RATIO
WOULD HAVE BEEN HIGHER.
NOTES TO FINANCIAL STATEMENTS
For the period ended February 28, 1999
1. SIGNIFICANT ACCOUNTING POLICIES.
The Spartan Total Market Index Fund, Spartan Extended Market Index
Fund and Spartan International Index Fund (the funds) are funds of
Fidelity Concord Street Trust (the trust). The trust is registered
under the Investment Company Act of 1940, as amended, as an open-end
management investment company organized as a Massachusetts business
trust. Each fund is authorized to issue an unlimited number of shares.
The financial statements have been prepared in conformity with
generally accepted accounting principles which require management to
make certain estimates and assumptions at the date of the financial
statements. The following summarizes the significant accounting
policies of the funds:
SECURITY VALUATION:
SPARTAN TOTAL MARKET INDEX AND SPARTAN EXTENDED
MARKET INDEX FUNDS. Securities for which exchange quotations are
readily available are valued at the last sale price, or if no sale
price, at the closing bid price. Securities for which exchange
quotations are not readily available (and in certain cases debt
securities which trade on an exchange) are valued primarily using
dealer-supplied valuations or at their fair value as determined in
good faith under consistently applied procedures under the general
supervision of the Board of Trustees. Short-term securities with
remaining maturities of sixty days or less for which quotations are
not readily available are valued at amortized cost or original cost
plus accrued interest, both of which approximate current value.
INTERNATIONAL INDEX FUND. Securities for which quotations are readily
available are valued at the last sale price, or if no sale price, at
the closing bid price in the principal market in which such securities
are normally traded. If trading or events occurring in other markets
after the close of the principal market in which securities are traded
are expected to materially affect the value of those securities, then
they are valued at their fair value taking this trading or these
events into account. Fair value is determined in good faith under
consistently applied procedures under the general supervision of the
Board of Trustees. Securities for which quotations are not readily
available are valued primarily using dealer-supplied valuations or at
their fair value. Short-term securities with remaining maturities of
sixty days or less for which quotations are not readily available are
valued at amortized cost or original cost plus accrued interest, both
of which approximate current value.
FOREIGN CURRENCY TRANSLATION. The accounting records of the funds are
maintained in U.S. dollars. Investment securities and other assets and
liabilities denominated in a foreign currency are translated into U.S.
dollars at the prevailing rates of exchange at period end. Purchases
and sales of securities, income receipts and expense payments are
translated into U.S. dollars at the prevailing exchange rate on the
respective dates of the transactions.
Net realized gains and losses on foreign currency transactions
represent net gains and losses from sales and maturities of foreign
currency contracts, disposition of foreign currencies, the difference
between the amount of net investment income accrued and the U.S.
dollar amount actually received, and gains and losses between trade
and settlement date on purchases and sales of securities. The effects
of changes in foreign currency exchange rates on investments in
securities are included with the net realized and unrealized gain or
loss on investment securities.
INCOME TAXES. As a qualified regulated investment company under
Subchapter M of the Internal Revenue Code, each fund is not subject to
income taxes to the extent that it distributes substantially all of
its taxable income for the fiscal year. The schedules of investments
include 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 funds
are informed of the ex-dividend date. Non-cash dividends included in
dividend income, if any, are recorded at the fair market value of the
securities received. Interest income, which includes accretion of
original issue discount, is accrued as earned. Investment income is
recorded net of foreign taxes withheld where recovery of such taxes is
uncertain.
EXPENSES. Most expenses of the trust can be directly attributed to a
fund. Expenses which cannot be directly attributed are apportioned
among the funds in the trust.
DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the
ex-dividend date.
Income and capital gain distributions are determined in accordance
with income tax regulations which may differ from generally accepted
accounting principles. These differences, which may result in
distribution reclassifications, are primarily due to differing
treatments for futures transactions, foreign currency transactions,
passive foreign investment companies (PFIC), market discount,
partnerships, capital loss carryforwards and losses deferred due to
wash sales. Certain funds 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.
Undistributed net investment income and accumulated undistributed net
realized gain (loss) on investments and foreign currency transactions
may include temporary book and tax basis differences which will
reverse in a subsequent period. Any taxable income or gain remaining
at fiscal year end is distributed in the following year.
PURCHASE FEES. Shares purchased in the fund are subject to a purchase
fee equal to 0.50%, 0.75%, and 1.00% of the amount invested in Spartan
Total Market Index, Spartan Extended Market Index and Spartan
International Index, respectively. This fee, which is retained by the
fund, is accounted for as an addition to paid in capital. Shares
purchased after April 28, 1999 will no longer be subject to a purchase
fee but will be subject to a redemption fee if redeemed within 90
days. The redemption
1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED
PURCHASE FEES - CONTINUED
fee levels will be equal to the existing purchase fee levels. Shares
purchased through April 28, 1999 are subject to a purchase fee, but
will not be subject to a redemption fee.
SECURITY TRANSACTIONS. Security transactions are accounted for as of
trade date. Gains and losses on securities sold are determined on the
basis of identified cost.
2. OPERATING POLICIES.
FORWARD FOREIGN CURRENCY CONTRACTS. The Spartan International Index
Fund generally uses foreign currency contracts to facilitate
transactions in foreign-denominated securities and to manage the
fund's currency exposure. Contracts to sell generally are used to
hedge the fund's investments against currency fluctuations, while
contracts to buy generally are used to offset a previous contract to
sell. Also, a contract to buy can be used to acquire exposure to
foreign currencies and a contract to sell can be used to offset a
previous contract to buy. These contracts involve market risk in
excess of the unrealized gain or loss reflected in the fund's
Statement of Assets and Liabilities. The U.S. dollar value of the
currencies the fund has committed to buy or sell is shown in the
schedule of investments under the caption "Forward Foreign Currency
Contracts." This amount represents the aggregate exposure to each
currency the fund has acquired or hedged through currency contracts at
period end. Losses may arise from changes in the value of foreign
currency or if the counterparties do not perform under the contracts'
terms.
The U.S. dollar value of forward foreign currency contracts is
determined using forward currency exchange rates supplied by a
quotation service. Purchases and sales of forward foreign currency
contracts having the same settlement date and broker are offset and
any realized gain (loss) is recognized on the date of offset;
otherwise, gain (loss) is recognized on settlement date. Contracts
that have been offset with different counterparties are reflected as
both a contract to buy and a contract to sell in the schedule of
investments under the caption "Forward Foreign Currency Contracts."
FUTURES CONTRACTS. The funds may use futures contracts to manage their
exposure to the stock market and to fluctuations in currency values.
Buying futures tends to increase a fund's exposure to the underlying
instrument, while selling futures tends to decrease a fund's exposure
to the underlying instrument or hedge other fund investments. Futures
contracts involve, to varying degrees, risk of loss in excess of the
futures variation margin reflected in each applicable fund's Statement
of Assets and Liabilities. The underlying face amount at value of any
open futures contracts at period end is shown in each applicable
fund's schedule of investments under the caption "Futures Contracts."
This amount reflects each contract's exposure to the underlying
instrument at period end. Losses may arise from changes in the value
of the underlying instruments or if the counterparties do not perform
under the contracts' terms. Gains (losses) are realized upon the
expiration or closing of the futures contracts. Futures contracts are
valued at the settlement price established each day by the board of
trade or exchange on which they are traded.
3. PURCHASES AND SALES OF INVESTMENTS.
Information regarding purchases and sales of securities (other than
short-term securities) and the market value of future contracts opened
and closed, is included under the caption "Other Information" at the
end of each applicable fund's schedule of investments.
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES.
MANAGEMENT FEE. As each fund's investment adviser, Fidelity Management
& Research Company (FMR) receives a fee that is computed daily at an
annual rate of 0.24%, 0.24% and 0.34% of the average net assets of
Spartan Total Market Index, Spartan Extended Market Index and Spartan
International Index, respectively.
SUB-ADVISER FEE. FMR and each of the funds have entered into a
sub-advisory agreement with Bankers Trust Company (Bankers Trust).
Bankers Trust receives a sub-advisory fee for providing investment
management, securities lending and custodial services to each of the
funds. For providing these services to Spartan Total Market Index and
Spartan Extended Market Index, FMR pays Bankers Trust fees at an
annual rate of 0.0125% of the average net assets of each fund. For
providing these services to Spartan International Index, FMR pays
Bankers Trust fees at an annual rate of 0.0650% of the average net
assets of the fund, plus fees of up to $200,000 annually.
In addition, each fund pays Bankers Trust fees equal to 40% of net
income from each fund's securities lending program. For the period,
the funds paid Bankers Trust the following amounts:
ANNUAL %
OF AVERAGE
AMOUNT NET ASSETS
Spartan Total Market Index $22,253 0.02%
Spartan Extended Market Index 30,583 0.06%
Spartan International Index 2,632 0.01%
On March 11, 1999, Bankers Trust announced that it had reached an
agreement with the United States Attorney's Office to resolve an
investigation concerning inappropriate transfers of unclaimed funds
and related recordkeeping problems that occured between 1994 and early
1996. Pursuant to its agreement with the U.S. Attorney's Office,
Bankers Trust pleaded guilty to misstating entries in the bank's books
and records. As a result of the plea, absent an order from the SEC,
Bankers Trust would not be able to continue to provide investment
advisory services to the funds. The SEC has granted a temporary order
to permit Bankers Trust and its affiliates to continue to provide
investment advisory services to registered investment companies. There
is no assurance that the SEC will grant a permanent order.
TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an
affiliate of FMR, is the funds' transfer, dividend disbursing and
shareholder servicing agent. FSC receives account fees and asset-based
fees that vary according to account size and type of
4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED
TRANSFER AGENT FEES - CONTINUED
account. FSC pays for typesetting, printing and mailing of all
shareholder reports, except proxy statements. For the period, the
transfer agent fees were equivalent to an annual rate of 0.15%, 0.15%
and 0.12% of the average net assets of Spartan Total Market Index,
Spartan Extended Market Index and Spartan International Index,
respectively.
ACCOUNTING FEES. FSC maintains each fund's accounting records. The fee
is based on the level of average net assets for the month plus
out-of-pocket expenses.
5. SECURITY LENDING.
The funds loaned securities to brokers who paid the funds negotiated
lenders' fees. These fees are included in interest income. Each fund
receives U.S. Treasury obligations and/or cash as collateral against
the loaned securities, in an amount at least equal to 102% of the
market value of the loaned securities at the inception of each loan.
This collateral must be maintained at not less than 100% of the market
value of the loaned securities during the period of the loan. The
market value of the loaned securities is determined at the close of
business of the fund and any additional required collateral is
delivered to the fund on the next business day. Information regarding
the value of securities loaned and the value of collateral at period
end is included under the caption "Other Information" at the end of
each fund's schedule of investments.
6. EXPENSE REDUCTIONS.
FMR voluntarily agreed to reimburse each fund's operating expenses
(excluding interest, taxes, brokerage commissions, extraordinary
expenses and sub-advisory fees paid by the fund associated with
securities lending) above the following annual rates of average net
assets for each of the following funds:
FMR
EXPENSE
LIMITATIONS REIMBURSEMENT
Spartan Total Market Index .25% $388,987
Spartan Extended Market Index .25% 246,882
Spartan International Index .35% 212,030
These agreements will continue through December 31, 1999.
In addition, the funds, or FMR on behalf of the funds, have entered
into an arrangement with their custodian whereby credits realized as a
result of uninvested cash balances were used to reduce a portion of
the funds' expenses. During the period, fees were reduced by $420,
$513 and $46 by the custodian for Spartan Total Market Index, Spartan
Extended Market Index and Spartan International Index, respectively,
under this arrangement.
7. BENEFICIAL INTEREST.
At the end of the period, FMR was record owner of more than 5% of the
outstanding shares of the following funds:
BENEFICIAL INTEREST
%
OWNERSHIP
Spartan International Index 30
REPORT OF INDEPENDENT ACCOUNTANTS
To the Trustees of Fidelity Concord Street Trust and the Shareholders
of Spartan Total Market Index, Spartan Extended Market Index and
Spartan International Index Funds:
In our opinion, the accompanying statements of assets and liabilities,
including the schedules of investments, and the related statements of
operations and of changes in net assets and the financial highlights
present fairly, in all material respects, the financial position of
Spartan Total Market Index, Spartan Extended Market Index and Spartan
International Index ( funds of Fidelity Concord Street Trust) at
February 28, 1999, and the results of their operations, the changes in
their net assets and the financial highlights for the periods
indicated, in conformity with generally accepted accounting
principles. These financial statements and financial highlights
(hereafter referred to as "financial statements") are the
responsibility of the Fidelity Concord Street Trust's management; our
responsibility is to express an opinion on these financial statements
based on our audits. We conducted our audits of these financial
statements in accordance with generally accepted auditing standards
which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements,
assessing the accounting principles used and significant estimates
made by management, and evaluating the overall financial statement
presentation. We believe that our audits, which included confirmation
of securities at February 28, 1999 by correspondence with the
custodian and brokers, provide a reasonable basis for the opinion
expressed above.
/s/PricewaterhouseCoopers LLP
PricewaterhouseCoopers LLP
Boston, Massachusetts
April 15, 1999
DISTRIBUTIONS
The Board of Trustees of the funds voted to pay to shareholders of
record at the opening of business on record date, the following
distributions derived from capital gains realized from sales of
portfolio securities, and dividends derived from net investment
income:
PAY DATE RECORD DATE DIVIDENDS CAPITAL GAINS
Spartan Total
Market Index 4/5/99 4/1/99 $0.05 $0.05
Spartan Extended
Market Index 4/5/99 4/1/99 $0.05 $0.77
Spartan International
Index 4/5/99 4/1/99 $0.01 $0.00
The funds hereby designate 100% of the long-term capital gain
dividends distributed during the fiscal year as 20%-rate capital gain
dividends.
OF SPECIAL NOTE
INTRODUCING FIDELITY'S NEW, REORGANIZED PROSPECTUS
Recently, the SEC issued new disclosure requirements for all mutual
fund prospectuses. While Fidelity could have complied by simply
following the new requirements, we saw a different opportunity. We saw
the chance to create a brand new prospectus: one that is better
organized, easier to use and more informative than ever.
The new format of the Fidelity mutual fund prospectus puts the
information you need to make informed investment decisions right at
your fingertips. In the opening pages, you will find the SEC-mandated
summary that highlights the fund's investment objectives, strategies
and risks. There's also an easy-to-read performance chart and fee
table right up front.
Inside, you will find additional features we've introduced to make the
fund prospectus a more useful tool. In our new Shareholder Information
section, for example, we have provided practical, beneficial
information - from how to buy or sell shares, key contact information,
investment services, ways to set up your account and more - all in one
convenient location.
We invite you to spend a moment and review our new prospectus. It is
designed to help make your investment decision easier, no matter which
of the Fidelity funds you invest in.
INVESTMENT ADVISER
Fidelity Management & Research Company
Boston, MA
INVESTMENT SUB-ADVISER
Bankers Trust Company
New York, NY
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Robert A. Lawrence, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
BOARD OF TRUSTEES
Ralph F. Cox *
Phyllis Burke Davis *
Robert M. Gates *
Edward C. Johnson 3d
E. Bradley Jones *
Donald J. Kirk *
Peter S. Lynch
Marvin L. Mann *
William O. McCoy *
Gerald C. McDonough *
Robert C. Pozen
Thomas R. Williams *
ADVISORY BOARD
Abigail P. Johnson
J. Gary Burkhead
GENERAL DISTRIBUTOR
Fidelity Distributors Corporation
Boston, MA
TRANSFER AND SHAREHOLDER SERVICING AGENT
Fidelity Service Company, Inc.
Boston, MA
CUSTODIAN
Bankers Trust Company
New York, NY
* INDEPENDENT TRUSTEES
FIDELITY'S INDEX FUNDS
Spartan Extended Market Index Fund
Spartan International Index Fund
Spartan Market Index Fund
Spartan Total Market Index Fund
THE FIDELITY TELEPHONE CONNECTION
MUTUAL FUND 24-HOUR SERVICE
Exchanges/Redemptions 1-800-544-7777
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)
TouchTone Xpress (registered trademark) 1-800-544-5555
AUTOMATED LINE FOR QUICKEST SERVICE
(fidelity_logo_graphic)(registered trademark)
P.O. Box 505422
Cincinnati, OH 45250-5422
BULK RATE
U.S. POSTAGE
P A I D
F I D E L I T Y
INVESTMENTS
SPARTAN INDEX FUNDS
82 DEVONSHIRE STREET
BOSTON, MASSACHUSETTS 02109
Correction:
The "Officers" section on the inside back cover of the Spartan Index
Funds' Annual Report/Prospectus dated April 21, 1999 should read as
listed below. Thank you.
OFFICERS
Edward C. Johnson 3d, PRESIDENT
Robert C. Pozen, SENIOR VICE PRESIDENT
Robert A. Lawrence, VICE PRESIDENT
Eric D. Roiter, SECRETARY
Richard A. Silver, TREASURER
Matthew N. Karstetter, DEPUTY TREASURER
John H. Costello, ASSISTANT TREASURER
Leonard M. Rush, ASSISTANT TREASURER
