-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, QP36FCuVPgS6BGEZKcnASo9y27jlr83QPHbb18D1R/+1SgfLXlhrhv/7g5tw7z1Y jad53RaUd7vriysQlFvfbA== 0000722574-10-000075.txt : 20100225 0000722574-10-000075.hdr.sgml : 20100225 20100225171225 ACCESSION NUMBER: 0000722574-10-000075 CONFORMED SUBMISSION TYPE: N-CSR PUBLIC DOCUMENT COUNT: 27 CONFORMED PERIOD OF REPORT: 20091231 FILED AS OF DATE: 20100225 DATE AS OF CHANGE: 20100225 EFFECTIVENESS DATE: 20100225 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY CONTRAFUND CENTRAL INDEX KEY: 0000024238 IRS NUMBER: 046056833 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-CSR SEC ACT: 1940 Act SEC FILE NUMBER: 811-01400 FILM NUMBER: 10634564 BUSINESS ADDRESS: STREET 1: FIDELITY INVESTMENTS COMPANY STREET 2: 82 DEVONSHIRE STREET CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: (617)439-1220 MAIL ADDRESS: STREET 1: 82 DEVONSHIRE STREET STREET 2: MAIL ZONE Z1C CITY: BOSTON STATE: MA ZIP: 02109 FORMER COMPANY: FORMER CONFORMED NAME: FIDELITY CONTRAFUND INC DATE OF NAME CHANGE: 19850618 FORMER COMPANY: FORMER CONFORMED NAME: CONTRAFUND INC DATE OF NAME CHANGE: 19810203 0000024238 S000006036 Fidelity Advisor New Insights Fund C000016596 Class A FNIAX C000016597 Class B FNIBX C000016598 Class C FNICX C000016599 Class T FNITX C000016600 Institutional Class FINSX 0000024238 S000006037 Fidelity Contrafund C000016601 Fidelity Contrafund FCNTX C000064233 Class K N-CSR 1 main.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-1400

Fidelity Contrafund
(Exact name of registrant as specified in charter)

82 Devonshire St., Boston, Massachusetts 02109
(Address of principal executive offices)       (Zip code)

Scott C. Goebel, Secretary

82 Devonshire St.

Boston, Massachusetts 02109
(Name and address of agent for service)

Registrant's telephone number, including area code: 617-563-7000

Date of fiscal year end:

December 31

 

 

Date of reporting period:

December 31, 2009

Item 1. Reports to Stockholders

(Fidelity Investment logo)(registered trademark)

Fidelity® Advisor

New Insights

Fund - Class A, Class T, Class B
and Class C

Annual Report

December 31, 2009
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

The Chairman's message to shareholders.

Performance

<Click Here>

How the fund has done over time.

Management's Discussion

<Click Here>

The manager's review of fund performance, strategy and outlook.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

<Click Here>

 

Trustees and Officers

<Click Here>

 

Distributions

<Click Here>

 

Board Approval of Investment Advisory Contracts and Management Fees

<Click Here>

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other 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 LLC or an affiliated company.

Annual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2009

Past 1
year

Past 5
years

Life of
fund
A

Class A (incl. 5.75% sales charge)

21.69%

3.73%

8.48%

Class T (incl. 3.50% sales charge)

24.30%

3.97%

8.63%

Class B (incl. contingent deferred sales charge)B

23.03%

3.77%

8.60%

Class C (incl. contingent deferred sales charge)C

27.10%

4.18%

8.67%

A From July 31, 2003.

B Class B shares' contingent deferred sales charges included in the past one year, past five years, and life of fund total return figures are 5%, 2%, and 0%, respectively.

C Class C shares' contingent deferred sales charge included in the past one year, past five years, and life of fund total return figures are 1%, 0%, and 0%, respectively.

See accompanying notes which are an integral part of the financial statements.

Annual Report

$10,000 Life of Fund

Let's say hypothetically that $10,000 was invested in Fidelity® Advisor New Insights Fund - Class A on July 31, 2003, when the fund started, and the current 5.75% sales charge was paid. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period.


fid5057

Annual Report

Management's Discussion of Fund Performance

Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.

Comments from William Danoff, Portfolio Manager of Fidelity® Advisor New Insights Fund: It was a relatively good year for the fund, whose Class A, Class T, Class B and Class C shares rose 29.12%, 28.81%, 28.03%, 28.10%, respectively (excluding sales charges), solidly beating the S&P 500. Relative performance was driven by good stock selection and an overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed. Foreign holdings also did well, bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 to December 31, 2009).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Annual Report

 

Annualized Expense Ratio

Beginning
Account Value
July 1, 2009

Ending
Account Value
December 31, 2009

Expenses Paid
During Period
*
July 1, 2009 to December 31, 2009

Class A

1.16%

 

 

 

Actual

 

$ 1,000.00

$ 1,219.90

$ 6.49

HypotheticalA

 

$ 1,000.00

$ 1,019.36

$ 5.90

Class T

1.41%

 

 

 

Actual

 

$ 1,000.00

$ 1,217.40

$ 7.88

HypotheticalA

 

$ 1,000.00

$ 1,018.10

$ 7.17

Class B

2.00%

 

 

 

Actual

 

$ 1,000.00

$ 1,214.30

$ 11.16

HypotheticalA

 

$ 1,000.00

$ 1,015.12

$ 10.16

Class C

1.91%

 

 

 

Actual

 

$ 1,000.00

$ 1,214.20

$ 10.66

HypotheticalA

 

$ 1,000.00

$ 1,015.58

$ 9.70

Institutional Class

.93%

 

 

 

Actual

 

$ 1,000.00

$ 1,220.70

$ 5.21

HypotheticalA

 

$ 1,000.00

$ 1,020.52

$ 4.74

A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Annual Report

Investment Changes (Unaudited)

Top Ten Stocks as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Google, Inc. Class A

5.7

4.6

Apple, Inc.

5.2

4.1

Wells Fargo & Co.

3.1

3.3

Berkshire Hathaway, Inc. Class A

2.8

3.4

Visa, Inc. Class A

2.6

2.1

The Coca-Cola Co.

2.3

2.3

McDonald's Corp.

2.1

2.3

Gilead Sciences, Inc.

1.6

2.1

The Walt Disney Co.

1.6

1.3

Noble Energy, Inc.

1.4

1.5

 

28.4

Top Five Market Sectors as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

30.3

26.4

Consumer Discretionary

14.8

12.6

Health Care

13.0

15.3

Financials

12.1

12.0

Consumer Staples

7.7

8.9

Asset Allocation (% of fund's net assets)

As of December 31, 2009*

As of June 30, 2009**

fid5059

Stocks 93.8%

 

fid5059

Stocks 90.8%

 

fid5062

Bonds 0.1%

 

fid5062

Bonds 0.1%

 

fid5065

Convertible
Securities 0.2%

 

fid5065

Convertible
Securities 0.2%

 

fid5068

Short-Term
Investments and
Net Other Assets 5.9%

 

fid5068

Short-Term
Investments and
Net Other Assets 8.9%

 

* Foreign investments

21.6%

 

** Foreign investments

18.4%

 


fid5071

Annual Report

Investments December 31, 2009

Showing Percentage of Net Assets

Common Stocks - 93.8%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 14.8%

Auto Components - 0.1%

Autoliv, Inc.

27,800

$ 1,205

Gentex Corp.

65,500

1,169

Johnson Controls, Inc.

94,800

2,582

TRW Automotive Holdings Corp. (a)

166,000

3,964

 

8,920

Automobiles - 0.5%

Dongfeng Motor Group Co. Ltd. (H Shares)

5,534,000

7,902

Geely Automobile Holdings Ltd. (c)

48,420,000

26,426

Honda Motor Co. Ltd. sponsored ADR (c)

392,000

13,289

Toyota Motor Corp.

314,100

13,249

 

60,866

Diversified Consumer Services - 0.2%

Brinks Home Security Holdings, Inc. (a)

27,900

911

MegaStudy Co. Ltd.

5,835

1,196

Strayer Education, Inc.

85,180

18,100

 

20,207

Hotels, Restaurants & Leisure - 3.4%

7 Days Group Holdings Ltd. ADR

82,700

1,032

Buffalo Wild Wings, Inc. (a)

15,800

636

Cafe de Coral Holdings Ltd.

1,478,000

3,375

Chipotle Mexican Grill, Inc. Class A (a)

253,128

22,316

Ctrip.com International Ltd. sponsored ADR (a)

15,600

1,121

Home Inns & Hotels Management, Inc. sponsored ADR (a)

160,900

5,688

Las Vegas Sands Corp. (a)

131,000

1,957

Little Sheep Group Ltd.

3,309,000

1,832

Marriott International, Inc. Class A

219,990

5,995

McDonald's Corp.

4,048,027

252,759

Panera Bread Co. Class A (a)(c)

91,500

6,128

Sands China Ltd.

3,750,000

4,525

Sodexo SA

86,100

4,914

Starbucks Corp. (a)

1,671,400

38,542

Starwood Hotels & Resorts Worldwide, Inc.

29,200

1,068

Tim Hortons, Inc.

1,804,400

55,052

WMS Industries, Inc. (a)

253,500

10,140

Wyndham Worldwide Corp.

142,294

2,870

 

419,950

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Household Durables - 0.0%

Gafisa SA sponsored ADR (c)

182,500

$ 5,906

iRobot Corp. (a)

93,300

1,642

 

7,548

Internet & Catalog Retail - 1.9%

Amazon.com, Inc. (a)

1,262,200

169,791

Expedia, Inc. (a)

276,600

7,111

Liberty Media Corp. Interactive Series A (a)

1,004,800

10,892

Netflix, Inc. (a)

105,736

5,830

Priceline.com, Inc. (a)

200,300

43,766

 

237,390

Leisure Equipment & Products - 0.0%

Sport Supply Group, Inc.

117,500

1,479

Media - 3.5%

CKX, Inc. (a)

285,693

1,506

Comcast Corp. Class A

436,500

7,359

DIRECTV (a)

2,502,535

83,460

Discovery Communications, Inc. (a)

2,081,000

63,824

DreamWorks Animation SKG, Inc. Class A (a)

237,924

9,505

Jupiter Telecommunications Co.

2,935

2,906

Liberty Media Corp.:

Capital Series A (a)

52,300

1,249

Starz Series A (a)

163,190

7,531

Marvel Entertainment, Inc. (a)

263,400

14,245

Naspers Ltd. Class N

401,500

16,255

Net Servicos de Comunicacao SA sponsored ADR

86,600

1,172

Pearson PLC

93,300

1,344

Scripps Networks Interactive, Inc. Class A

646,400

26,826

The Walt Disney Co.

5,966,900

192,433

The Weinstein Co. III Holdings, LLC Class A-1 (a)(h)

2,267

850

 

430,465

Multiline Retail - 0.6%

99 Cents Only Stores (a)

218,900

2,861

Big Lots, Inc. (a)

84,100

2,437

Dollar General Corp.

114,100

2,559

Dollar Tree, Inc. (a)

731,500

35,331

Dollarama, Inc.

168,000

3,574

Dollarama, Inc. (a)(e)

71,000

1,510

Golden Eagle Retail Group Ltd. (H Shares)

843,000

1,710

Mothercare PLC

79,633

878

Next PLC

230,000

7,743

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Multiline Retail - continued

Parkson Retail Group Ltd.

5,148,500

$ 9,060

PCD Stores Group Ltd.

7,260,000

2,787

 

70,450

Specialty Retail - 2.8%

Advance Auto Parts, Inc.

386,300

15,637

Aeropostale, Inc. (a)

307,100

10,457

Bed Bath & Beyond, Inc. (a)

186,000

7,185

Belle International Holdings Ltd.

4,460,000

5,167

Best Buy Co., Inc.

322,600

12,730

Chico's FAS, Inc. (a)

80,400

1,130

Fourlis Holdings SA

527,400

6,939

Gymboree Corp. (a)

119,500

5,197

Hengdeli Holdings Ltd.

3,096,000

1,169

Inditex SA

217,722

13,525

J. Crew Group, Inc. (a)

1,166,615

52,194

Lumber Liquidators, Inc. (a)(c)

218,700

5,861

O'Reilly Automotive, Inc. (a)

122,000

4,651

RadioShack Corp.

295,300

5,758

Ross Stores, Inc.

643,373

27,478

Rue21, Inc.

20,400

573

Staples, Inc.

512,100

12,593

TJX Companies, Inc.

3,625,400

132,508

Urban Outfitters, Inc. (a)

658,100

23,027

Vitamin Shoppe, Inc.

41,100

914

 

344,693

Textiles, Apparel & Luxury Goods - 1.8%

Burberry Group PLC

663,800

6,426

China Dongxiang Group Co. Ltd.

4,722,000

3,643

China Hongxing Sports Ltd.

6,000,000

811

Coach, Inc.

617,600

22,561

Li Ning Co. Ltd.

1,874,500

7,107

NIKE, Inc. Class B

2,387,300

157,729

Phillips-Van Heusen Corp.

26,100

1,062

Polo Ralph Lauren Corp. Class A

201,300

16,301

Shenzhou International Group Holdings Ltd.

547,000

712

 

216,352

TOTAL CONSUMER DISCRETIONARY

1,818,320

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - 7.7%

Beverages - 2.7%

Anheuser-Busch InBev SA NV

239,570

$ 12,483

C&C Group PLC

373,392

1,609

Coca-Cola FEMSA SAB de CV sponsored ADR

36,500

2,399

Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR

31,100

3,144

Diageo PLC sponsored ADR

203,000

14,090

Dr Pepper Snapple Group, Inc.

43,700

1,237

Fomento Economico Mexicano SAB de CV sponsored ADR

51,300

2,456

The Coca-Cola Co.

4,906,300

279,659

Tsingtao Brewery Co. Ltd. (H Shares)

1,896,000

10,487

 

327,564

Food & Staples Retailing - 0.7%

Costco Wholesale Corp.

390,000

23,076

Susser Holdings Corp. (a)

64,402

553

Tesco PLC

7,647,027

52,895

Wal-Mart Stores, Inc.

167,400

8,948

Wm Morrison Supermarkets PLC

1,062,566

4,764

 

90,236

Food Products - 1.6%

Ausnutria Dairy Hunan Co. Ltd. Class H

2,145,000

1,759

Brasil Foods SA sponsored ADR (c)

45,900

2,404

Cadbury PLC

839,200

10,816

Campbell Soup Co.

54,400

1,839

Danone

131,541

8,066

General Mills, Inc.

636,000

45,035

Kellogg Co.

460,500

24,499

Nestle SA (Reg.)

752,945

36,504

Ralcorp Holdings, Inc. (a)

288,600

17,232

Tingyi (Cayman Island) Holding Corp.

4,294,000

10,625

TreeHouse Foods, Inc. (a)

525,593

20,425

Want Want China Holdings Ltd.

21,124,000

14,751

 

193,955

Household Products - 2.6%

Colgate-Palmolive Co.

1,822,800

149,743

Hypermarcas SA (a)

221,300

4,996

Mcbride PLC

369,800

1,265

Procter & Gamble Co.

2,595,567

157,369

 

313,373

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Personal Products - 0.1%

BaWang International (Group) Holding Ltd.

9,533,000

$ 6,601

Estee Lauder Companies, Inc. Class A

50,800

2,457

Hengan International Group Co. Ltd.

948,000

7,019

Mead Johnson Nutrition Co. Class A

10,207

446

NBTY, Inc. (a)

55,100

2,399

 

18,922

Tobacco - 0.0%

Philip Morris International, Inc.

36,500

1,759

TOTAL CONSUMER STAPLES

945,809

ENERGY - 7.4%

Energy Equipment & Services - 1.0%

National Oilwell Varco, Inc.

24,800

1,093

Schlumberger Ltd.

1,805,800

117,540

Seadrill Ltd. (c)

97,400

2,487

 

121,120

Oil, Gas & Consumable Fuels - 6.4%

Anadarko Petroleum Corp.

802,900

50,117

Apache Corp.

112,600

11,617

Arena Resources, Inc. (a)

82,300

3,549

BG Group PLC

313,664

5,688

Birchcliff Energy Ltd. (a)

1,487,700

13,381

BP PLC sponsored ADR

19,300

1,119

Canadian Natural Resources Ltd.

639,100

46,230

Cenovus Energy, Inc.

1,192,300

30,073

Chesapeake Energy Corp.

62,499

1,617

Clean Energy Fuels Corp. (a)(c)

268,200

4,133

CNPC (Hong Kong) Ltd.

4,430,000

5,842

Concho Resources, Inc. (a)

413,500

18,566

Crescent Point Energy Corp. (c)

377,500

14,189

EnCana Corp.

1,192,300

38,709

EOG Resources, Inc.

567,800

55,247

EXCO Resources, Inc.

61,700

1,310

Exxon Mobil Corp.

737,702

50,304

Govi High Power Exploration, Inc. (a)(h)

2,750,000

5,500

GoviEx IP Holdings, Inc. (a)(h)

2,750,000

0*

InterOil Corp. (a)

41,400

3,180

Ivanhoe Energy, Inc. (a)(c)

2,114,400

5,957

Newfield Exploration Co. (a)

25,400

1,225

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Niko Resources Ltd.

27,100

$ 2,538

Noble Energy, Inc.

2,446,700

174,254

Northern Oil & Gas, Inc. (a)(c)

906,475

10,733

Occidental Petroleum Corp.

1,250,600

101,736

Pacific Rubiales Energy Corp. (a)(c)

83,700

1,231

PetroBakken Energy Ltd. Class A

337,489

10,385

Petrobank Energy & Resources Ltd. (a)

159,900

7,794

Petroleo Brasileiro SA - Petrobras sponsored ADR

103,700

4,944

Petroplus Holdings AG

544,927

10,015

Range Resources Corp.

678,200

33,808

Reliance Industries Ltd.

327,616

7,698

Sable Mining Africa Ltd. (a)(d)

30,303,030

5,142

Southwestern Energy Co. (a)

794,900

38,314

TransAtlantic Petroleum Ltd. (a)(e)

1,234,400

4,230

Ultra Petroleum Corp. (a)

22,000

1,097

Whiting Petroleum Corp. (a)

36,400

2,601

 

784,073

TOTAL ENERGY

905,193

FINANCIALS - 12.0%

Capital Markets - 1.3%

BlackRock, Inc. Class A

20,300

4,714

Charles Schwab Corp.

1,802,100

33,916

Franklin Resources, Inc.

260,400

27,433

Goldman Sachs Group, Inc.

336,100

56,747

T. Rowe Price Group, Inc.

705,200

37,552

 

160,362

Commercial Banks - 4.2%

Banco Bradesco SA (PN) sponsored ADR

62,600

1,369

Banco do Brasil SA

703,900

11,833

BOC Hong Kong Holdings Ltd.

2,423,500

5,445

Center Financial Corp.

50,000

230

China Citic Bank Corp. Ltd. Class H

4,460,000

3,775

China Merchants Bank Co. Ltd. (H Shares)

461,000

1,199

HDFC Bank Ltd. sponsored ADR (c)

47,700

6,205

Industrial & Commercial Bank of China Ltd. (H Shares)

14,176,000

11,674

Itau Unibanco Banco Multiplo SA ADR

736,370

16,819

M&T Bank Corp. (c)

18,800

1,258

PT Bank Central Asia Tbk

2,333,500

1,201

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Commercial Banks - continued

Standard Chartered PLC (United Kingdom)

2,626,126

$ 66,846

State Bank of India

115,430

5,643

Union Bank of India

11,346

65

Wells Fargo & Co.

14,233,785

384,170

 

517,732

Consumer Finance - 0.3%

American Express Co.

876,400

35,512

Diversified Financial Services - 1.9%

BM&F BOVESPA SA

323,200

2,286

Citigroup, Inc.

9,470,900

31,349

CME Group, Inc.

18,400

6,181

Gimv NV

18,400

962

Hong Kong Exchanges and Clearing Ltd.

1,040,900

18,519

IntercontinentalExchange, Inc. (a)

100,000

11,230

JPMorgan Chase & Co.

3,878,719

161,626

MSCI, Inc. Class A (a)

74,300

2,363

 

234,516

Insurance - 4.0%

ACE Ltd.

310,900

15,669

Admiral Group PLC

837,500

16,093

Berkshire Hathaway, Inc. Class A (a)

3,493

346,506

China Life Insurance Co. Ltd. ADR (c)

14,300

1,049

Fairfax Financial Holdings Ltd. (sub. vtg.)

48,300

18,848

The Chubb Corp.

1,165,600

57,324

The Travelers Companies, Inc.

668,900

33,351

 

488,840

Real Estate Investment Trusts - 0.1%

Corporate Office Properties Trust (SBI)

30,700

1,125

Simon Property Group, Inc.

45,872

3,661

Starwood Property Trust, Inc.

145,300

2,745

 

7,531

Real Estate Management & Development - 0.2%

China Overseas Land & Investment Ltd.

1,560,000

3,269

Swire Pacific Ltd. (A Shares)

282,000

3,410

Wharf Holdings Ltd.

2,381,000

13,664

 

20,343

TOTAL FINANCIALS

1,464,836

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - 12.9%

Biotechnology - 3.5%

Actelion Ltd. (Reg.) (a)

296,029

$ 15,781

Alexion Pharmaceuticals, Inc. (a)

399,700

19,513

Allos Therapeutics, Inc. (a)(c)

372,600

2,448

Amgen, Inc. (a)

261,300

14,782

Celgene Corp. (a)

847,400

47,183

Gilead Sciences, Inc. (a)

4,479,200

193,860

Human Genome Sciences, Inc. (a)(c)

816,200

24,976

ImmunoGen, Inc. (a)

274,419

2,157

MannKind Corp. (a)(c)

828,333

7,256

MannKind Corp. warrants 8/3/10 (a)(h)

29,881

35

Medivation, Inc. (a)(c)

853,300

32,127

Micromet, Inc. (a)

467,100

3,111

OREXIGEN Therapeutics, Inc. (a)

121,500

904

Regeneron Pharmaceuticals, Inc. (a)

175,300

4,239

RXi Pharmaceuticals Corp. (a)(c)

571,429

2,617

RXi Pharmaceuticals Corp. warrants 2/4/10 (a)

228,571

775

Seattle Genetics, Inc. (a)

165,800

1,685

Targacept, Inc. (a)

1,105,800

23,133

United Therapeutics Corp. (a)

119,500

6,292

Vertex Pharmaceuticals, Inc. (a)

535,700

22,955

Zymogenetics, Inc. (a)(c)

193,400

1,236

 

427,065

Health Care Equipment & Supplies - 2.0%

Alcon, Inc.

215,500

35,417

Baxter International, Inc.

288,700

16,941

Becton, Dickinson & Co.

271,500

21,410

C. R. Bard, Inc.

135,499

10,555

Covidien PLC

1,422,666

68,131

DENTSPLY International, Inc.

719,717

25,312

Edwards Lifesciences Corp. (a)

356,400

30,953

ev3, Inc. (a)

393,800

5,253

ICU Medical, Inc. (a)

27,900

1,017

Inverness Medical Innovations, Inc. (a)

166,300

6,903

Mindray Medical International Ltd. sponsored ADR (c)

34,100

1,157

NuVasive, Inc. (a)

199,400

6,377

Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares)

2,284,000

7,612

Thoratec Corp. (a)

102,800

2,767

 

239,805

Health Care Providers & Services - 1.6%

Emergency Medical Services Corp. Class A (a)

157,100

8,507

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Health Care Providers & Services - continued

Express Scripts, Inc. (a)

589,100

$ 50,928

Henry Schein, Inc. (a)

51,800

2,725

HMS Holdings Corp. (a)

80,400

3,915

Medco Health Solutions, Inc. (a)

2,070,500

132,326

Sinopharm Group Co. Ltd. Class H

438,000

1,539

 

199,940

Health Care Technology - 0.4%

Cerner Corp. (a)

368,700

30,396

Quality Systems, Inc.

337,900

21,217

 

51,613

Life Sciences Tools & Services - 1.2%

Fluidigm Corp. warrants 9/10/10 (a)

1

0

Illumina, Inc. (a)

72,300

2,216

Life Technologies Corp. (a)

516,400

26,972

Mettler-Toledo International, Inc. (a)

552,000

57,954

QIAGEN NV (a)

517,600

11,553

Techne Corp.

47,400

3,250

Thermo Fisher Scientific, Inc. (a)

64,600

3,081

Waters Corp. (a)

651,000

40,336

 

145,362

Pharmaceuticals - 4.2%

Abbott Laboratories

3,134,500

169,232

Allergan, Inc.

173,400

10,926

AstraZeneca PLC (United Kingdom)

1,228,655

57,777

Bristol-Myers Squibb Co.

620,432

15,666

Dr. Reddy's Laboratories Ltd. sponsored ADR (c)

146,900

3,556

Forest Laboratories, Inc. (a)

964,400

30,967

Johnson & Johnson

1,603,700

103,294

MAP Pharmaceuticals, Inc. (a)

599,800

5,716

Merck & Co., Inc.

102,300

3,738

Novo Nordisk AS Series B

450,333

28,763

Optimer Pharmaceuticals, Inc. (a)

116,900

1,319

Salix Pharmaceuticals Ltd. (a)

238,100

6,048

Shionogi & Co. Ltd.

108,000

2,343

Teva Pharmaceutical Industries Ltd. sponsored ADR

1,002,900

56,343

Valeant Pharmaceuticals International (a)(c)

530,700

16,871

 

512,559

TOTAL HEALTH CARE

1,576,344

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - 2.9%

Aerospace & Defense - 0.2%

AeroVironment, Inc. (a)

39,500

$ 1,149

DigitalGlobe, Inc.

53,000

1,283

GeoEye, Inc. (a)

78,200

2,180

Precision Castparts Corp.

34,500

3,807

Raytheon Co.

21,100

1,087

United Technologies Corp.

182,100

12,640

 

22,146

Air Freight & Logistics - 0.7%

C.H. Robinson Worldwide, Inc.

1,374,272

80,711

Airlines - 0.0%

Ryanair Holdings PLC sponsored ADR (a)

42,500

1,140

Southwest Airlines Co.

345,200

3,946

 

5,086

Building Products - 0.1%

Armstrong World Industries, Inc. (a)

175,800

6,844

Commercial Services & Supplies - 0.2%

APAC Customer Services, Inc. (a)(c)(d)

2,732,044

16,283

Stericycle, Inc. (a)

191,900

10,587

Waste Connections, Inc. (a)

35,400

1,180

 

28,050

Construction & Engineering - 0.2%

Jacobs Engineering Group, Inc. (a)

503,200

18,925

Electrical Equipment - 0.3%

A123 Systems, Inc.

43,400

974

American Superconductor Corp. (a)(c)

349,100

14,278

China High Speed Transmission Equipment Group Co. Ltd.

2,709,000

6,577

Cooper Industries PLC Class A

332,645

14,184

Nexxus Lighting, Inc. (a)

109,400

372

 

36,385

Industrial Conglomerates - 0.0%

Beijing Enterprises Holdings Ltd.

635,500

4,603

Carlisle Companies, Inc.

32,100

1,100

 

5,703

Machinery - 0.8%

China Automation Group Ltd.

5,128,000

4,183

Danaher Corp.

740,177

55,661

Duoyuan Global Water, Inc. ADR (c)

90,300

3,232

Oshkosh Co.

61,700

2,285

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Machinery - continued

PACCAR, Inc.

502,723

$ 18,234

SmartHeat, Inc. (a)(c)

630,800

9,159

 

92,754

Marine - 0.0%

Kuehne & Nagel International AG

12,190

1,183

Professional Services - 0.1%

Robert Half International, Inc.

243,700

6,514

SEEK Ltd.

1,000,000

6,198

Verisk Analytics, Inc.

200,800

6,080

 

18,792

Road & Rail - 0.3%

Canadian National Railway Co.

514,400

28,074

CSX Corp.

73,600

3,569

Dollar Thrifty Automotive Group, Inc. (a)

64,400

1,649

Knight Transportation, Inc.

38,000

733

Norfolk Southern Corp.

23,300

1,221

 

35,246

Trading Companies & Distributors - 0.0%

Fastenal Co. (c)

56,400

2,348

W.W. Grainger, Inc.

22,000

2,130

 

4,478

TOTAL INDUSTRIALS

356,303

INFORMATION TECHNOLOGY - 30.2%

Communications Equipment - 2.1%

Aruba Networks, Inc. (a)

3,500

37

BYD Electronic International Co. Ltd. (a)

12,928,500

10,530

Cisco Systems, Inc. (a)

3,709,800

88,813

F5 Networks, Inc. (a)

343,000

18,172

Motorola, Inc.

501,500

3,892

QUALCOMM, Inc.

3,075,000

142,250

ZTE Corp. (H Shares)

34,400

211

 

263,905

Computers & Peripherals - 6.9%

Apple, Inc. (a)

3,004,453

633,519

Compellent Technologies, Inc. (a)

171,400

3,887

Dell, Inc. (a)

461,000

6,620

EMC Corp. (a)

69,900

1,221

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Computers & Peripherals - continued

Hewlett-Packard Co.

3,184,100

$ 164,013

NetApp, Inc. (a)

836,300

28,760

Western Digital Corp. (a)

176,100

7,775

 

845,795

Electronic Equipment & Components - 1.1%

Agilent Technologies, Inc.

259,100

8,050

Amphenol Corp. Class A (a)

1,161,840

53,654

BYD Co. Ltd. (H Shares) (a)(c)

4,365,190

38,263

Corning, Inc.

139,000

2,684

FLIR Systems, Inc. (a)

911,700

29,831

Itron, Inc. (a)

18,500

1,250

Prime View International Co. Ltd. sponsored GDR (a)(e)

89,500

2,356

Samsung SDI Co. Ltd.

9,106

1,160

Tech Data Corp. (a)

26,500

1,236

Wasion Group Holdings Ltd.

4,128,000

4,290

 

142,774

Internet Software & Services - 7.5%

AOL, Inc. (a)

164,999

3,841

Baidu.com, Inc. sponsored ADR (a)

67,800

27,881

Constant Contact, Inc. (a)

199,000

3,184

Google, Inc. Class A (a)

1,119,871

694,297

LogMeIn, Inc.

106,500

2,125

NetEase.com, Inc. sponsored ADR (a)(c)

911,000

34,263

NHN Corp. (a)

6,949

1,144

Open Text Corp. (a)

49,400

2,008

Rackspace Hosting, Inc. (a)

117,800

2,456

SkillSoft PLC sponsored ADR (a)

111,800

1,172

Sohu.com, Inc. (a)(c)

282,100

16,159

Tencent Holdings Ltd.

4,614,700

99,802

VistaPrint Ltd. (a)

317,200

17,973

WebMD Health Corp. (a)

230,036

8,854

 

915,159

IT Services - 4.2%

Accenture PLC Class A

1,747,400

72,517

Cognizant Technology Solutions Corp. Class A (a)

430,400

19,497

Echo Global Logistics, Inc.

28,600

363

Fidelity National Information Services, Inc.

1,120,300

26,260

Fiserv, Inc. (a)

46,700

2,264

Global Payments, Inc.

14,300

770

Hewitt Associates, Inc. Class A (a)

409,500

17,305

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

IT Services - continued

Infosys Technologies Ltd. sponsored ADR

16,300

$ 901

MasterCard, Inc. Class A

179,469

45,940

Redecard SA

413,200

6,782

The Western Union Co.

46,600

878

VeriFone Holdings, Inc. (a)

4,800

79

Visa, Inc. Class A

3,653,800

319,561

Wipro Ltd. sponsored ADR (c)

58,100

1,294

 

514,411

Semiconductors & Semiconductor Equipment - 3.4%

Altera Corp.

1,069,700

24,207

Analog Devices, Inc.

38,200

1,206

ARM Holdings PLC sponsored ADR

305,800

2,618

ASML Holding NV (NY Shares)

367,600

12,531

Atheros Communications, Inc. (a)

28,983

992

Avago Technologies Ltd.

270,800

4,953

Broadcom Corp. Class A (a)

892,000

28,053

Cree, Inc. (a)

729,000

41,094

Cymer, Inc. (a)

131,000

5,028

Intel Corp.

441,000

8,996

KLA-Tencor Corp.

241,100

8,718

Marvell Technology Group Ltd. (a)

3,684,700

76,458

MediaTek, Inc.

65,000

1,134

NVIDIA Corp. (a)

2,965,600

55,397

ON Semiconductor Corp. (a)

488,000

4,299

Samsung Electronics Co. Ltd.

154,257

105,698

Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR

2,921,346

33,420

 

414,802

Software - 5.0%

Activision Blizzard, Inc. (a)

3,834,600

42,602

Adobe Systems, Inc. (a)

971,806

35,743

ANSYS, Inc. (a)

173,700

7,549

ArcSight, Inc. (a)

314,239

8,038

Ariba, Inc. (a)

109,800

1,375

AsiaInfo Holdings, Inc. (a)

576,000

17,551

BMC Software, Inc. (a)

1,083,400

43,444

Check Point Software Technologies Ltd. (a)

1,045,300

35,415

Citrix Systems, Inc. (a)

626,800

26,081

CommVault Systems, Inc. (a)

98,800

2,341

Fortinet, Inc.

204,700

3,597

Informatica Corp. (a)

574,409

14,854

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Software - continued

Intuit, Inc. (a)

38,500

$ 1,182

Longtop Financial Technologies Ltd. ADR (a)

204,600

7,574

McAfee, Inc. (a)

1,983,400

80,467

Oracle Corp.

5,625,150

138,041

Pegasystems, Inc.

197,100

6,701

Perfect World Co. Ltd. sponsored ADR Class B (a)

99,100

3,909

Red Hat, Inc. (a)

490,800

15,166

Rovi Corp. (a)

194,000

6,183

Salesforce.com, Inc. (a)

523,700

38,633

Shanda Interactive Entertainment Ltd. sponsored ADR (a)

381,600

20,076

SolarWinds, Inc. (c)

328,800

7,566

Solera Holdings, Inc.

32,900

1,185

Sourcefire, Inc. (a)

967,340

25,876

SuccessFactors, Inc. (a)

163,900

2,717

Sybase, Inc. (a)

55,600

2,413

TIBCO Software, Inc. (a)

592,300

5,704

VanceInfo Technologies, Inc. ADR (a)

237,700

4,566

VMware, Inc. Class A (a)

54,500

2,310

 

608,859

TOTAL INFORMATION TECHNOLOGY

3,705,705

MATERIALS - 5.3%

Chemicals - 0.5%

Ecolab, Inc.

835,300

37,238

Huabao International Holdings Ltd.

15,641,000

16,818

Lubrizol Corp.

61,100

4,457

Valspar Corp.

30,300

822

 

59,335

Containers & Packaging - 0.1%

Owens-Illinois, Inc. (a)

28,300

930

Rock-Tenn Co. Class A

112,000

5,646

Temple-Inland, Inc.

313,100

6,610

 

13,186

Metals & Mining - 4.7%

Alamos Gold, Inc. (a)

104,100

1,244

AngloGold Ashanti Ltd. sponsored ADR

568,800

22,854

B2Gold Corp. (a)

1,404,000

1,617

B2Gold Corp. (a)(e)

500,000

576

BHP Billiton Ltd. sponsored ADR

158,900

12,169

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - continued

Eldorado Gold Corp. (a)

4,402,803

$ 62,523

First Quantum Minerals Ltd.

51,900

3,965

Franco-Nevada Corp.

1,402,200

37,502

Franco-Nevada Corp. (e)

126,300

3,378

Franco-Nevada Corp. warrants 6/16/17 (a)(e)

63,150

397

Goldcorp, Inc.

2,693,301

105,999

Ivanhoe Mines Ltd. (a)

4,017,100

59,302

Kinross Gold Corp.

4,055,076

74,760

Newcrest Mining Ltd.

2,507,164

79,565

Randgold Resources Ltd. sponsored ADR

880,722

69,683

Red Back Mining, Inc. (a)

1,854,804

26,481

Red Back Mining, Inc. (a)(e)

98,900

1,412

Vale SA sponsored ADR

240,900

6,993

Ventana Gold Corp. (a)

164,400

1,261

 

571,681

TOTAL MATERIALS

644,202

TELECOMMUNICATION SERVICES - 0.5%

Diversified Telecommunication Services - 0.1%

AboveNet, Inc. (a)

89,000

5,789

Clearwire Corp.:

rights 6/21/10 (a)

357,050

143

Class A (a)

357,050

2,414

Iliad Group SA

10,223

1,222

Nippon Telegraph & Telephone Corp.

138,400

5,470

Telmex Internacional SAB de CV Series L ADR (c)

155,400

2,758

 

17,796

Wireless Telecommunication Services - 0.4%

American Tower Corp. Class A (a)

287,900

12,440

MTN Group Ltd.

293,200

4,665

NTT DoCoMo, Inc.

2,849

3,978

Sprint Nextel Corp. (a)

647,700

2,371

Vivo Participacoes SA sponsored ADR

614,700

19,056

 

42,510

TOTAL TELECOMMUNICATION SERVICES

60,306

Common Stocks - continued

Shares

Value (000s)

UTILITIES - 0.1%

Multi-Utilities - 0.1%

YTL Corp. Bhd

3,794,910

$ 8,091

Water Utilities - 0.0%

YTL Power International Bhd

3,555

2

TOTAL UTILITIES

8,093

TOTAL COMMON STOCKS

(Cost $9,315,008)

11,485,111

Preferred Stocks - 0.2%

 

 

 

 

Convertible Preferred Stocks - 0.2%

FINANCIALS - 0.0%

Diversified Financial Services - 0.0%

Ning, Inc. Series D 8.00% (a)(h)

541,260

3,191

HEALTH CARE - 0.1%

Biotechnology - 0.1%

Light Sciences Oncology, Inc. (a)(h)

463,700

1,855

Light Sciences Oncology, Inc. Series B (a)(h)

1,792,115

7,168

 

9,023

Health Care Equipment & Supplies - 0.0%

superDimension Ltd. (a)(h)

91,600

1,053

Life Sciences Tools & Services - 0.0%

Fluidigm Corp. (a)

143,925

1,007

TOTAL HEALTH CARE

11,083

INFORMATION TECHNOLOGY - 0.1%

Internet Software & Services - 0.0%

Digg, Inc. Series C, 8.00% (a)(h)

64,821

486

Software - 0.1%

Trion World Network, Inc. 8.00% (h)

602,295

3,307

TOTAL INFORMATION TECHNOLOGY

3,793

TOTAL CONVERTIBLE PREFERRED STOCKS

18,067

Preferred Stocks - continued

Shares

Value (000s)

Nonconvertible Preferred Stocks - 0.0%

TELECOMMUNICATION SERVICES - 0.0%

Diversified Telecommunication Services - 0.0%

Slide, Inc. Series D (a)(h)

809,262

$ 1,003

TOTAL PREFERRED STOCKS

(Cost $34,367)

19,070

Nonconvertible Bonds - 0.1%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.0%

Automobiles - 0.0%

Ford Motor Co.:

6.375% 2/1/29

$ 700

515

6.625% 10/1/28

1,490

1,118

7.45% 7/16/31

2,235

1,975

 

3,608

FINANCIALS - 0.1%

Diversified Financial Services - 0.1%

Ford Holdings LLC 9.3% 3/1/30

6,415

5,902

TOTAL NONCONVERTIBLE BONDS

(Cost $4,295)

9,510

Floating Rate Loans - 0.0%

 

CONSUMER DISCRETIONARY - 0.0%

Automobiles - 0.0%

Ford Motor Co. term loan 3.2871% 12/15/13 (f)

(Cost $5,910)

6,666

6,183

Money Market Funds - 7.4%

Shares

Value (000s)

Fidelity Cash Central Fund, 0.16% (g)

771,494,181

$ 771,494

Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g)

139,250,900

139,251

TOTAL MONEY MARKET FUNDS

(Cost $910,745)

910,745

TOTAL INVESTMENT PORTFOLIO - 101.5%

(Cost $10,270,325)

12,430,619

NET OTHER ASSETS - (1.5)%

(183,763)

NET ASSETS - 100%

$ 12,246,856

Legend

(a) Non-income producing

(b) Investment made with cash collateral received from securities on loan.

(c) Security or a portion of the security is on loan at period end.

(d) Affiliated company

(e) 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 end of the period, the value of these securities amounted to $13,859,000 or 0.1% of net assets.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $24,448,000 or 0.2% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition
Cost (000s)

Digg, Inc. Series C, 8.00%

9/23/08

$ 683

Govi High Power Exploration, Inc.

9/28/07

$ 5,500

GoviEx IP Holdings, Inc.

7/28/08

$ 0*

Light Sciences Oncology, Inc.

7/9/08

$ 3,881

Light Sciences Oncology, Inc. Series B

4/4/07

$ 15,000

MannKind Corp. warrants 8/3/10

8/3/05

$ 1

Ning, Inc. Series D 8.00%

3/19/08

$ 3,870

Slide, Inc. Series D

1/14/08

$ 3,693

superDimension Ltd.

2/27/08 - 5/22/08

$ 1,963

The Weinstein Co. III Holdings, LLC Class A-1

10/19/05

$ 2,267

Trion World Network, Inc. 8.00%

8/22/08

$ 3,307

* Amount represents less than $1,000.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 3,733

Fidelity Securities Lending Cash Central Fund

1,772

Total

$ 5,505

Other Affiliated Issuers

An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:

Affiliates
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of
period

APAC Customer Services, Inc.

$ -

$ 14,329

$ -

$ -

$ 16,283

Sable Mining Africa Ltd.

-

4,932

-

-

5,142

Total

$ -

$ 19,261

$ -

$ -

$ 21,425

Other Information

The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 1,818,320

$ 1,725,900

$ 91,570

$ 850

Consumer Staples

945,809

894,567

51,242

-

Energy

905,193

893,851

5,842

5,500

Financials

1,468,027

1,403,881

60,955

3,191

Health Care

1,587,427

1,506,263

70,081

11,083

Industrials

356,303

340,940

15,363

-

Information Technology

3,709,498

3,552,609

153,096

3,793

Materials

644,202

627,384

16,818

-

Telecommunication Services

61,309

50,858

9,448

1,003

Utilities

8,093

8,093

-

-

Corporate Bonds

9,510

-

9,510

-

Floating Rate Loans

6,183

-

6,183

-

Money Market Funds

910,745

910,745

-

-

Total Investments in Securities:

$ 12,430,619

$ 11,915,091

$ 490,108

$ 25,420

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

Investments in Securities:
(Amounts in thousands)

 

Beginning Balance

$ 67,974

Total Realized Gain (Loss)

(16,265)

Total Unrealized Gain (Loss)

(9,129)

Cost of Purchases

45

Proceeds of Sales

(11,735)

Amortization/Accretion

-

Transfers in/out of Level 3

(5,470)

Ending Balance

$ 25,420

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009

$ (5,859)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America

78.4%

Canada

5.6%

China

2.4%

United Kingdom

2.1%

Ireland

1.3%

Bermuda

1.0%

Netherlands Antilles

1.0%

Others (individually less than 1%)

8.2%

 

100.0%

Income Tax Information

At December 31, 2009, the fund had a capital loss carryforward of approximately $1,550,171,000 of which $726,035,000 and $824,136,000 will expire on December 31, 2016 and 2017, respectively.

The fund intends to elect to defer to its fiscal year ending December 31, 2010 approximately $84,647,000 of losses recognized during the period November 1, 2009 to December 31, 2009.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

December 31, 2009

Assets

Investment in securities, at value (including securities loaned of $134,730) - See accompanying schedule:

Unaffiliated issuers (cost $9,340,319)

$ 11,498,449

 

Fidelity Central Funds (cost $910,745)

910,745

 

Other affiliated issuers (cost $19,261)

21,425

 

Total Investments (cost $10,270,325)

 

$ 12,430,619

Cash

305

Receivable for investments sold

2,585

Receivable for fund shares sold

25,058

Dividends receivable

7,162

Interest receivable

333

Distributions receivable from Fidelity Central Funds

257

Prepaid expenses

48

Other receivables

303

Total assets

12,466,670

 

 

 

Liabilities

Payable for investments purchased

$ 45,577

Payable for fund shares redeemed

22,422

Accrued management fee

6,427

Distribution fees payable

3,311

Other affiliated payables

2,402

Other payables and accrued expenses

424

Collateral on securities loaned, at value

139,251

Total liabilities

219,814

 

 

 

Net Assets

$ 12,246,856

Net Assets consist of:

 

Paid in capital

$ 11,832,430

Accumulated net investment loss

(45)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(1,745,839)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

2,160,310

Net Assets

$ 12,246,856

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 Amounts in thousands (except per-share amounts)

December 31, 2009

 

 

 

Calculation of Maximum Offering Price

 Class A:
Net Asset Value
and redemption price per share ($4,264,638 ÷ 247,403 shares)

$ 17.24

 

 

 

Maximum offering price per share (100/94.25 of $17.24)

$ 18.29

Class T:
Net Asset Value
and redemption price per share ($1,557,262 ÷ 91,154 shares)

$ 17.08

 

 

 

Maximum offering price per share (100/96.50 of $17.08)

$ 17.70

Class B:
Net Asset Value
and offering price per share ($400,943 ÷ 24,313 shares)A

$ 16.49

 

 

 

Class C:
Net Asset Value
and offering price per share ($1,798,828 ÷ 108,671 shares)A

$ 16.55

 

 

 

Institutional Class:
Net Asset Value
, offering price and redemption price per share ($4,225,185 ÷ 242,937 shares)

$ 17.39

A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

 Amounts in thousands

Year ended December 31, 2009

Investment Income

 

 

Dividends

 

$ 108,289

Interest

 

656

Income from Fidelity Central Funds

 

5,505

Total income

 

114,450

Expenses

Management fee
Basic fee

$ 54,209

Performance adjustment

8,928

Transfer agent fees

25,498

Distribution fees

33,054

Accounting and security lending fees

1,440

Custodian fees and expenses

608

Independent trustees' compensation

65

Registration fees

771

Audit

93

Legal

49

Miscellaneous

183

Total expenses before reductions

124,898

Expense reductions

(865)

124,033

Net investment income (loss)

(9,583)

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(358,609)

Foreign currency transactions

(184)

Capital gain distributions from Fidelity Central Funds

9

Total net realized gain (loss)

 

(358,784)

Change in net unrealized appreciation (depreciation) on:

Investment securities

2,979,201

Assets and liabilities in foreign currencies

5

Total change in net unrealized appreciation (depreciation)

 

2,979,206

Net gain (loss)

2,620,422

Net increase (decrease) in net assets resulting from operations

$ 2,610,839

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
December 31,
2009

Year ended
December 31,
2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ (9,583)

$ 11,706

Net realized gain (loss)

(358,784)

(1,357,004)

Change in net unrealized appreciation (depreciation)

2,979,206

(3,202,536)

Net increase (decrease) in net assets resulting
from operations

2,610,839

(4,547,834)

Distributions to shareholders from net investment income

(3,220)

(4,517)

Distributions to shareholders from net realized gain

(12,352)

(56,382)

Total distributions

(15,572)

(60,899)

Share transactions - net increase (decrease)

1,323,677

3,443,380

Total increase (decrease) in net assets

3,918,944

(1,165,353)

 

 

 

Net Assets

Beginning of period

8,327,912

9,493,265

End of period (including accumulated net investment loss of $45 and undistributed net investment income of $2,772, respectively)

$ 12,246,856

$ 8,327,912

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class A

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.36

$ 21.65

$ 18.37

$ 16.65

$ 13.99

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  - G

  .05

  .08

  .06

  .02

Net realized and unrealized gain (loss)

  3.89

  (8.22)

  3.65

  1.78

  2.64

Total from investment operations

  3.89

  (8.17)

  3.73

  1.84

  2.66

Distributions from net investment income

  -

  - G

  (.06)

  (.03)

  -

Distributions from net realized gain

  (.01)

  (.12)

  (.39)

  (.08)

  -

Total distributions

  (.01)

  (.12)

  (.45)

  (.12) H

  -

Net asset value, end of period

$ 17.24

$ 13.36

$ 21.65

$ 18.37

$ 16.65

Total Return A, B

  29.12%

  (37.92)%

  20.26%

  11.06%

  19.01%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.19%

  1.10%

  1.09%

  1.12%

  1.17%

Expenses net of fee waivers, if any

  1.19%

  1.10%

  1.09%

  1.12%

  1.17%

Expenses net of all reductions

  1.18%

  1.10%

  1.08%

  1.11%

  1.13%

Net investment income (loss)

  -% I

  .26%

  .42%

  .37%

  .13%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 4,265

$ 2,614

$ 2,630

$ 1,823

$ 1,019

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

G Amount represents less than $.01 per share.

H Total distributions of $.12 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $.083 per share.

I Amount represents less than .01%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class T

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.26

$ 21.56

$ 18.29

$ 16.57

$ 13.96

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  (.04)

  - G

  .04

  .03

  (.01)

Net realized and unrealized gain (loss)

  3.86

  (8.18)

  3.62

  1.77

  2.62

Total from investment operations

  3.82

  (8.18)

  3.66

  1.80

  2.61

Distributions from net realized gain

  -

  (.12)

  (.39)

  (.08)

  -

Net asset value, end of period

$ 17.08

$ 13.26

$ 21.56

$ 18.29

$ 16.57

Total Return A, B

  28.81%

  (38.13)%

  20.00%

  10.90%

  18.70%

Ratios to Average Net D, F

 

 

 

 

 

Expenses before reductions

  1.45%

  1.34%

  1.31%

  1.32%

  1.38%

Expenses net of fee waivers, if any

  1.45%

  1.34%

  1.31%

  1.32%

  1.38%

Expenses net of all reductions

  1.44%

  1.34%

  1.31%

  1.31%

  1.34%

Net investment income (loss)

  (.25)%

  .02%

  .19%

  .17%

  (.08)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,557

$ 1,254

$ 2,185

$ 2,165

$ 1,393

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

G Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class B

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 12.88

$ 21.04

$ 17.97

$ 16.35

$ 13.85

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  (.11)

  (.10)

  (.08)

  (.07)

  (.10)

Net realized and unrealized gain (loss)

  3.72

  (7.94)

  3.54

  1.74

  2.60

Total from investment operations

  3.61

  (8.04)

  3.46

  1.67

  2.50

Distributions from net realized gain

  -

  (.12)

  (.39)

  (.05)

  -

Net asset value, end of period

$ 16.49

$ 12.88

$ 21.04

$ 17.97

$ 16.35

Total Return A, B

  28.03%

  (38.41)%

  19.24%

  10.23%

  18.05%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  2.01%

  1.91%

  1.89%

  1.93%

  1.98%

Expenses net of fee waivers, if any

  2.00%

  1.91%

  1.89%

  1.93%

  1.98%

Expenses net of all reductions

  1.99%

  1.91%

  1.89%

  1.92%

  1.94%

Net investment income (loss)

  (.81)%

  (.55)%

  (.39)%

  (.44)%

  (.68)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 401

$ 313

$ 489

$ 452

$ 339

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class C

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 12.92

$ 21.10

$ 18.00

$ 16.37

$ 13.86

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  (.11)

  (.09)

  (.06)

  (.06)

  (.09)

Net realized and unrealized gain (loss)

  3.74

  (7.97)

  3.55

  1.74

  2.60

Total from investment operations

  3.63

  (8.06)

  3.49

  1.68

  2.51

Distributions from net realized gain

  -

  (.12)

  (.39)

  (.05)

  -

Net asset value, end of period

$ 16.55

$ 12.92

$ 21.10

$ 18.00

$ 16.37

Total Return A, B

  28.10%

  (38.39)%

  19.37%

  10.28%

  18.11%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.95%

  1.85%

  1.82%

  1.85%

  1.89%

Expenses net of fee waivers, if any

  1.95%

  1.85%

  1.82%

  1.85%

  1.89%

Expenses net of all reductions

  1.94%

  1.85%

  1.82%

  1.83%

  1.85%

Net investment income (loss)

  (.76)%

  (.49)%

  (.32)%

  (.35)%

  (.59)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,799

$ 1,355

$ 1,879

$ 1,596

$ 1,006

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Institutional Class

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.49

$ 21.84

$ 18.52

$ 16.78

$ 14.05

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .03

  .09

  .14

  .12

  .07

Net realized and unrealized gain (loss)

  3.93

  (8.30)

  3.67

  1.79

  2.66

Total from investment operations

  3.96

  (8.21)

  3.81

  1.91

  2.73

Distributions from net investment income

  (.02)

  (.02)

  (.10)

  (.09)

  -

Distributions from net realized gain

  (.04)

  (.12)

  (.39)

  (.08)

  -

Total distributions

  (.06)

  (.14)

  (.49)

  (.17) F

  -

Net asset value, end of period

$ 17.39

$ 13.49

$ 21.84

$ 18.52

$ 16.78

Total Return A

  29.37%

  (37.76)%

  20.57%

  11.40%

  19.43%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .96%

  .86%

  .81%

  .83%

  .84%

Expenses net of fee waivers, if any

  .96%

  .86%

  .81%

  .83%

  .84%

Expenses net of all reductions

  .95%

  .85%

  .81%

  .82%

  .79%

Net investment income (loss)

  .24%

  .50%

  .69%

  .66%

  .47%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 4,225

$ 2,793

$ 2,309

$ 1,540

$ 498

Portfolio turnover rate D

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Calculated based on average shares outstanding during the period.

C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

F Total distributions of $.17 per share is comprised of distributions from net investment income of $.086 and distributions from net realized gain of $.083 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2009

(Amounts in thousands except ratios)

1. Organization.

Fidelity Advisor New Insights Fund (the Fund) is a fund of Fidelity Contrafund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 16, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise,

Annual Report

3. Significant Accounting Policies - continued

Security Valuation - continued

comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to short-term gain distributions from Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 2,289,678

 

Gross unrealized depreciation

(258,870)

 

Net unrealized appreciation (depreciation)

$ 2,030,808

 

 

 

 

Tax Cost

$ 10,399,811

 

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 18,489

 

Capital loss carryforward

$ (1,550,171)

 

Net unrealized appreciation (depreciation)

$ 2,030,823

 

The tax character of distributions paid was as follows:

 

December 31, 2009

December 31, 2008

Ordinary Income

$ 15,572

$ 7,041

Long-term Capital Gains

-

53,858

Total

$ 15,572

$ 60,899

4. Operating Policies.

Restricted Securities. The Fund may 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

4. Operating Policies - continued

Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $6,501,020 and $5,170,633, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund, as compared to an appropriate benchmark index. The Fund's performance period began on October 1, 2007 and subsequent months will be added until the performance period includes 36 months. The performance adjustment took effect in September 2008. For the period, the total annual management fee rate, including the performance adjustment, was .65% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan - continued

For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

 

Distribution
Fee

Service
Fee

Paid to
FDC

Retained
by FDC

Class A

-%

.25%

$ 8,153

$ 444

Class T

.25%

.25%

6,610

28

Class B

.75%

.25%

3,378

2,544

Class C

.75%

.25%

14,913

3,539

 

 

 

$ 33,054

$ 6,555

Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 1,102

Class T

196

Class B*

784

Class C*

252

 

$ 2,334

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, the total transfer agent fees paid by each class were as follows:

 

Amount

% of
Average
Net Assets

Class A

$ 8,318

.25

Class T

3,435

.26

Class B

1,109

.33

Class C

3,933

.26

Institutional Class

8,703

.27

 

$ 25,498

 

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $65 for the period.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $46 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to

Annual Report

8. Security Lending - continued

the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $1,772.

9. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.

The following classes were in reimbursement during the period:

 

Expense
Limitations

Reimbursement
from adviser

Class B

2.00%

$ 50

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $813 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $2.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,

2009

2008

From net investment income

 

 

Class A

$ -

$ 5

Institutional Class

3,220

4,512

Total

$ 3,220

$ 4,517

From net realized gain

 

 

Class A

$ 2,465

$ 15,552

Class T

-

11,399

Class B

-

2,709

Class C

-

10,794

Institutional Class

9,887

15,928

Total

$ 12,352

$ 56,382

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended December 31,

2009

2008

2009

2008

Class A

 

 

 

 

Shares sold

104,375

119,010

$ 1,494,493

$ 2,140,557

Reinvestment of distributions

270

733

4,650

14,197

Shares redeemed

(52,894)

(45,547)

(757,053)

(756,171)

Net increase (decrease)

51,751

74,196

$ 742,090

$ 1,398,583

Class T

 

 

 

 

Shares sold

21,310

23,040

$ 301,368

$ 407,661

Reinvestment of distributions

-

555

-

10,694

Shares redeemed

(24,666)

(30,471)

(343,847)

(526,856)

Net increase (decrease)

(3,356)

(6,876)

$ (42,479)

$ (108,501)

Class B

 

 

 

 

Shares sold

5,587

6,574

$ 75,985

$ 114,734

Reinvestment of distributions

-

121

-

2,270

Shares redeemed

(5,591)

(5,630)

(75,502)

(93,597)

Net increase (decrease)

(4)

1,065

$ 483

$ 23,407

Class C

 

 

 

 

Shares sold

26,780

39,154

$ 366,996

$ 680,481

Reinvestment of distributions

-

427

-

8,052

Shares redeemed

(22,967)

(23,763)

(310,754)

(381,933)

Net increase (decrease)

3,813

15,818

$ 56,242

$ 306,600

Institutional Class

 

 

 

 

Shares sold

125,440

157,886

$ 1,816,051

$ 2,763,287

Reinvestment of distributions

1,257

834

20,220

14,720

Shares redeemed

(90,870)

(57,341)

(1,268,930)

(954,716)

Net increase (decrease)

35,827

101,379

$ 567,341

$ 1,823,291

12. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Advisor New Insights 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 Advisor New Insights Fund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Advisor New Insights 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 16, 2010

Annual Report

Trustees and Officers

The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Edward C. Johnson 3d (79)

 

Year of Election or Appointment: 1984

Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007).

James C. Curvey (74)

 

Year of Election or Appointment: 2007

Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation

Dennis J. Dirks (61)

 

Year of Election or Appointment: 2005

Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (56)

 

Year of Election or Appointment: 2008

Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association.

Ned C. Lautenbach (65)

 

Year of Election or Appointment: 2000

Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (65)

 

Year of Election or Appointment: 2008

Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).

Cornelia M. Small (65)

 

Year of Election or Appointment: 2005

Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (70)

 

Year of Election or Appointment: 2001

Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science.

David M. Thomas (60)

 

Year of Election or Appointment: 2008

Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).

Michael E. Wiley (59)

 

Year of Election or Appointment: 2008

Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).

Advisory Board Member and Executive Officers:

Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Peter S. Lynch (65)

 

Year of Election or Appointment: 2003

Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Kenneth B. Robins (40)

 

Year of Election or Appointment: 2008

President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004).

Bruce T. Herring (44)

 

Year of Election or Appointment: 2006

Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds.

Brian B. Hogan (45)

 

Year of Election or Appointment: 2009

Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager.

Scott C. Goebel (41)

 

Year of Election or Appointment: 2008

Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).

William C. Coffey (40)

 

Year of Election or Appointment: 2009

Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments.

Holly C. Laurent (55)

 

Year of Election or Appointment: 2008

Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006).

Christine Reynolds (51)

 

Year of Election or Appointment: 2008

Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007).

Kenneth A. Rathgeber (62)

 

Year of Election or Appointment: 2004

Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc.(2005-present).

Jeffrey S. Christian (48)

 

Year of Election or Appointment: 2009

Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004).

Bryan A. Mehrmann (48)

 

Year of Election or Appointment: 2005

Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004).

Adrien E. Deberghes (42)

 

Year of Election or Appointment: 2008

Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005).

John R. Hebble (51)

 

Year of Election or Appointment: 2009

Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments.

Paul M. Murphy (62)

 

Year of Election or Appointment: 2007

Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007).

Gary W. Ryan (51)

 

Year of Election or Appointment: 2005

Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005).

Annual Report

Distributions (Unaudited)

The Board of Trustees of Fidelity Advisor New Insights Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

 

Pay Date

Record Date

Capital Gains

Class A

02/08/10

02/05/10

$.03

Class T

02/08/10

02/05/10

$.03

Class B

02/08/10

02/05/10

$.03

Class C

02/08/10

02/05/10

$.03

Class A designates 100% of the dividends distributed in December 2009 as qualifying for the dividends-received deduction for corporate shareholders.

Class A designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

Advisor New Insights Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Annual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Institutional Class (Class I) and Class B of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. The returns of Institutional Class (Class I) and Class B show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Advisor New Insights Fund


fid5073

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Institutional Class (Class I) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Class A through May 31, 2009 and stated that it exceeded the fund's benchmark.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Annual Report

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Advisor New Insights Fund


fid5075

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for 2008 represents calculations for performance periods that differ from the periods shown in the performance charts above.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

Annual Report

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.

Annual Report

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Research & Analysis Company

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors
(U.K.) Ltd.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

Brown Brothers Harriman & Co.

Boston, MA

ANIF-UANN-0210
1.796408.106

fid5077

(Fidelity Investment logo)(registered trademark)

Fidelity® Advisor

New Insights

Fund - Institutional Class

Annual Report

December 31, 2009
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

The Chairman's message to shareholders.

Performance

<Click Here>

How the fund has done over time.

Management's Discussion

<Click Here>

The manager's review of fund performance, strategy and outlook.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

<Click Here>

 

Trustees and Officers

<Click Here>

 

Distributions

<Click Here>

 

Board Approval of Investment Advisory Contracts and Management Fees

<Click Here>

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other 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 LLC or an affiliated company.

Annual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2009

Past 1
year

Past 5
years

Life of
fund
A

Institutional Class

29.37%

5.25%

9.80%

A From July 31, 2003.

$10,000 Life of Fund

Let's say hypothetically that $10,000 was invested in Fidelity® Advisor New Insights Fund - Institutional Class on July 31, 2003, when the fund started. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period.


fid5091

See accompanying notes which are an integral part of the financial statements.

Annual Report

Management's Discussion of Fund Performance

Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.

Comments from William Danoff, Portfolio Manager of Fidelity® Advisor New Insights Fund: It was a relatively good year for the fund, whose Institutional Class shares returned 29.37%, surpassing the S&P 500 by almost three percentage points. Relative performance was driven by good stock selection and an increased overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Similarly, stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed. Foreign holdings also did well, bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchase payments or redemption proceeds, and (2) ongoing costs, including management fees, distribution and/or service (12b-1) fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 to December 31, 2009).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would have been higher.

Annual Report

 

Annualized Expense Ratio

Beginning
Account Value
July 1, 2009

Ending
Account Value
December 31, 2009

Expenses Paid
During Period
*
July 1, 2009 to December 31, 2009

Class A

1.16%

 

 

 

Actual

 

$ 1,000.00

$ 1,219.90

$ 6.49

HypotheticalA

 

$ 1,000.00

$ 1,019.36

$ 5.90

Class T

1.41%

 

 

 

Actual

 

$ 1,000.00

$ 1,217.40

$ 7.88

HypotheticalA

 

$ 1,000.00

$ 1,018.10

$ 7.17

Class B

2.00%

 

 

 

Actual

 

$ 1,000.00

$ 1,214.30

$ 11.16

HypotheticalA

 

$ 1,000.00

$ 1,015.12

$ 10.16

Class C

1.91%

 

 

 

Actual

 

$ 1,000.00

$ 1,214.20

$ 10.66

HypotheticalA

 

$ 1,000.00

$ 1,015.58

$ 9.70

Institutional Class

.93%

 

 

 

Actual

 

$ 1,000.00

$ 1,220.70

$ 5.21

HypotheticalA

 

$ 1,000.00

$ 1,020.52

$ 4.74

A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Annual Report

Investment Changes (Unaudited)

Top Ten Stocks as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Google, Inc. Class A

5.7

4.6

Apple, Inc.

5.2

4.1

Wells Fargo & Co.

3.1

3.3

Berkshire Hathaway, Inc. Class A

2.8

3.4

Visa, Inc. Class A

2.6

2.1

The Coca-Cola Co.

2.3

2.3

McDonald's Corp.

2.1

2.3

Gilead Sciences, Inc.

1.6

2.1

The Walt Disney Co.

1.6

1.3

Noble Energy, Inc.

1.4

1.5

 

28.4

Top Five Market Sectors as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

30.3

26.4

Consumer Discretionary

14.8

12.6

Health Care

13.0

15.3

Financials

12.1

12.0

Consumer Staples

7.7

8.9

Asset Allocation (% of fund's net assets)

As of December 31, 2009*

As of June 30, 2009**

fid5059

Stocks 93.8%

 

fid5059

Stocks 90.8%

 

fid5062

Bonds 0.1%

 

fid5062

Bonds 0.1%

 

fid5065

Convertible
Securities 0.2%

 

fid5065

Convertible
Securities 0.2%

 

fid5068

Short-Term
Investments and
Net Other Assets 5.9%

 

fid5068

Short-Term
Investments and
Net Other Assets 8.9%

 

* Foreign investments

21.6%

 

** Foreign investments

18.4%

 

fid5101

Annual Report

Investments December 31, 2009

Showing Percentage of Net Assets

Common Stocks - 93.8%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 14.8%

Auto Components - 0.1%

Autoliv, Inc.

27,800

$ 1,205

Gentex Corp.

65,500

1,169

Johnson Controls, Inc.

94,800

2,582

TRW Automotive Holdings Corp. (a)

166,000

3,964

 

8,920

Automobiles - 0.5%

Dongfeng Motor Group Co. Ltd. (H Shares)

5,534,000

7,902

Geely Automobile Holdings Ltd. (c)

48,420,000

26,426

Honda Motor Co. Ltd. sponsored ADR (c)

392,000

13,289

Toyota Motor Corp.

314,100

13,249

 

60,866

Diversified Consumer Services - 0.2%

Brinks Home Security Holdings, Inc. (a)

27,900

911

MegaStudy Co. Ltd.

5,835

1,196

Strayer Education, Inc.

85,180

18,100

 

20,207

Hotels, Restaurants & Leisure - 3.4%

7 Days Group Holdings Ltd. ADR

82,700

1,032

Buffalo Wild Wings, Inc. (a)

15,800

636

Cafe de Coral Holdings Ltd.

1,478,000

3,375

Chipotle Mexican Grill, Inc. Class A (a)

253,128

22,316

Ctrip.com International Ltd. sponsored ADR (a)

15,600

1,121

Home Inns & Hotels Management, Inc. sponsored ADR (a)

160,900

5,688

Las Vegas Sands Corp. (a)

131,000

1,957

Little Sheep Group Ltd.

3,309,000

1,832

Marriott International, Inc. Class A

219,990

5,995

McDonald's Corp.

4,048,027

252,759

Panera Bread Co. Class A (a)(c)

91,500

6,128

Sands China Ltd.

3,750,000

4,525

Sodexo SA

86,100

4,914

Starbucks Corp. (a)

1,671,400

38,542

Starwood Hotels & Resorts Worldwide, Inc.

29,200

1,068

Tim Hortons, Inc.

1,804,400

55,052

WMS Industries, Inc. (a)

253,500

10,140

Wyndham Worldwide Corp.

142,294

2,870

 

419,950

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Household Durables - 0.0%

Gafisa SA sponsored ADR (c)

182,500

$ 5,906

iRobot Corp. (a)

93,300

1,642

 

7,548

Internet & Catalog Retail - 1.9%

Amazon.com, Inc. (a)

1,262,200

169,791

Expedia, Inc. (a)

276,600

7,111

Liberty Media Corp. Interactive Series A (a)

1,004,800

10,892

Netflix, Inc. (a)

105,736

5,830

Priceline.com, Inc. (a)

200,300

43,766

 

237,390

Leisure Equipment & Products - 0.0%

Sport Supply Group, Inc.

117,500

1,479

Media - 3.5%

CKX, Inc. (a)

285,693

1,506

Comcast Corp. Class A

436,500

7,359

DIRECTV (a)

2,502,535

83,460

Discovery Communications, Inc. (a)

2,081,000

63,824

DreamWorks Animation SKG, Inc. Class A (a)

237,924

9,505

Jupiter Telecommunications Co.

2,935

2,906

Liberty Media Corp.:

Capital Series A (a)

52,300

1,249

Starz Series A (a)

163,190

7,531

Marvel Entertainment, Inc. (a)

263,400

14,245

Naspers Ltd. Class N

401,500

16,255

Net Servicos de Comunicacao SA sponsored ADR

86,600

1,172

Pearson PLC

93,300

1,344

Scripps Networks Interactive, Inc. Class A

646,400

26,826

The Walt Disney Co.

5,966,900

192,433

The Weinstein Co. III Holdings, LLC Class A-1 (a)(h)

2,267

850

 

430,465

Multiline Retail - 0.6%

99 Cents Only Stores (a)

218,900

2,861

Big Lots, Inc. (a)

84,100

2,437

Dollar General Corp.

114,100

2,559

Dollar Tree, Inc. (a)

731,500

35,331

Dollarama, Inc.

168,000

3,574

Dollarama, Inc. (a)(e)

71,000

1,510

Golden Eagle Retail Group Ltd. (H Shares)

843,000

1,710

Mothercare PLC

79,633

878

Next PLC

230,000

7,743

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Multiline Retail - continued

Parkson Retail Group Ltd.

5,148,500

$ 9,060

PCD Stores Group Ltd.

7,260,000

2,787

 

70,450

Specialty Retail - 2.8%

Advance Auto Parts, Inc.

386,300

15,637

Aeropostale, Inc. (a)

307,100

10,457

Bed Bath & Beyond, Inc. (a)

186,000

7,185

Belle International Holdings Ltd.

4,460,000

5,167

Best Buy Co., Inc.

322,600

12,730

Chico's FAS, Inc. (a)

80,400

1,130

Fourlis Holdings SA

527,400

6,939

Gymboree Corp. (a)

119,500

5,197

Hengdeli Holdings Ltd.

3,096,000

1,169

Inditex SA

217,722

13,525

J. Crew Group, Inc. (a)

1,166,615

52,194

Lumber Liquidators, Inc. (a)(c)

218,700

5,861

O'Reilly Automotive, Inc. (a)

122,000

4,651

RadioShack Corp.

295,300

5,758

Ross Stores, Inc.

643,373

27,478

Rue21, Inc.

20,400

573

Staples, Inc.

512,100

12,593

TJX Companies, Inc.

3,625,400

132,508

Urban Outfitters, Inc. (a)

658,100

23,027

Vitamin Shoppe, Inc.

41,100

914

 

344,693

Textiles, Apparel & Luxury Goods - 1.8%

Burberry Group PLC

663,800

6,426

China Dongxiang Group Co. Ltd.

4,722,000

3,643

China Hongxing Sports Ltd.

6,000,000

811

Coach, Inc.

617,600

22,561

Li Ning Co. Ltd.

1,874,500

7,107

NIKE, Inc. Class B

2,387,300

157,729

Phillips-Van Heusen Corp.

26,100

1,062

Polo Ralph Lauren Corp. Class A

201,300

16,301

Shenzhou International Group Holdings Ltd.

547,000

712

 

216,352

TOTAL CONSUMER DISCRETIONARY

1,818,320

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - 7.7%

Beverages - 2.7%

Anheuser-Busch InBev SA NV

239,570

$ 12,483

C&C Group PLC

373,392

1,609

Coca-Cola FEMSA SAB de CV sponsored ADR

36,500

2,399

Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR

31,100

3,144

Diageo PLC sponsored ADR

203,000

14,090

Dr Pepper Snapple Group, Inc.

43,700

1,237

Fomento Economico Mexicano SAB de CV sponsored ADR

51,300

2,456

The Coca-Cola Co.

4,906,300

279,659

Tsingtao Brewery Co. Ltd. (H Shares)

1,896,000

10,487

 

327,564

Food & Staples Retailing - 0.7%

Costco Wholesale Corp.

390,000

23,076

Susser Holdings Corp. (a)

64,402

553

Tesco PLC

7,647,027

52,895

Wal-Mart Stores, Inc.

167,400

8,948

Wm Morrison Supermarkets PLC

1,062,566

4,764

 

90,236

Food Products - 1.6%

Ausnutria Dairy Hunan Co. Ltd. Class H

2,145,000

1,759

Brasil Foods SA sponsored ADR (c)

45,900

2,404

Cadbury PLC

839,200

10,816

Campbell Soup Co.

54,400

1,839

Danone

131,541

8,066

General Mills, Inc.

636,000

45,035

Kellogg Co.

460,500

24,499

Nestle SA (Reg.)

752,945

36,504

Ralcorp Holdings, Inc. (a)

288,600

17,232

Tingyi (Cayman Island) Holding Corp.

4,294,000

10,625

TreeHouse Foods, Inc. (a)

525,593

20,425

Want Want China Holdings Ltd.

21,124,000

14,751

 

193,955

Household Products - 2.6%

Colgate-Palmolive Co.

1,822,800

149,743

Hypermarcas SA (a)

221,300

4,996

Mcbride PLC

369,800

1,265

Procter & Gamble Co.

2,595,567

157,369

 

313,373

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Personal Products - 0.1%

BaWang International (Group) Holding Ltd.

9,533,000

$ 6,601

Estee Lauder Companies, Inc. Class A

50,800

2,457

Hengan International Group Co. Ltd.

948,000

7,019

Mead Johnson Nutrition Co. Class A

10,207

446

NBTY, Inc. (a)

55,100

2,399

 

18,922

Tobacco - 0.0%

Philip Morris International, Inc.

36,500

1,759

TOTAL CONSUMER STAPLES

945,809

ENERGY - 7.4%

Energy Equipment & Services - 1.0%

National Oilwell Varco, Inc.

24,800

1,093

Schlumberger Ltd.

1,805,800

117,540

Seadrill Ltd. (c)

97,400

2,487

 

121,120

Oil, Gas & Consumable Fuels - 6.4%

Anadarko Petroleum Corp.

802,900

50,117

Apache Corp.

112,600

11,617

Arena Resources, Inc. (a)

82,300

3,549

BG Group PLC

313,664

5,688

Birchcliff Energy Ltd. (a)

1,487,700

13,381

BP PLC sponsored ADR

19,300

1,119

Canadian Natural Resources Ltd.

639,100

46,230

Cenovus Energy, Inc.

1,192,300

30,073

Chesapeake Energy Corp.

62,499

1,617

Clean Energy Fuels Corp. (a)(c)

268,200

4,133

CNPC (Hong Kong) Ltd.

4,430,000

5,842

Concho Resources, Inc. (a)

413,500

18,566

Crescent Point Energy Corp. (c)

377,500

14,189

EnCana Corp.

1,192,300

38,709

EOG Resources, Inc.

567,800

55,247

EXCO Resources, Inc.

61,700

1,310

Exxon Mobil Corp.

737,702

50,304

Govi High Power Exploration, Inc. (a)(h)

2,750,000

5,500

GoviEx IP Holdings, Inc. (a)(h)

2,750,000

0*

InterOil Corp. (a)

41,400

3,180

Ivanhoe Energy, Inc. (a)(c)

2,114,400

5,957

Newfield Exploration Co. (a)

25,400

1,225

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Niko Resources Ltd.

27,100

$ 2,538

Noble Energy, Inc.

2,446,700

174,254

Northern Oil & Gas, Inc. (a)(c)

906,475

10,733

Occidental Petroleum Corp.

1,250,600

101,736

Pacific Rubiales Energy Corp. (a)(c)

83,700

1,231

PetroBakken Energy Ltd. Class A

337,489

10,385

Petrobank Energy & Resources Ltd. (a)

159,900

7,794

Petroleo Brasileiro SA - Petrobras sponsored ADR

103,700

4,944

Petroplus Holdings AG

544,927

10,015

Range Resources Corp.

678,200

33,808

Reliance Industries Ltd.

327,616

7,698

Sable Mining Africa Ltd. (a)(d)

30,303,030

5,142

Southwestern Energy Co. (a)

794,900

38,314

TransAtlantic Petroleum Ltd. (a)(e)

1,234,400

4,230

Ultra Petroleum Corp. (a)

22,000

1,097

Whiting Petroleum Corp. (a)

36,400

2,601

 

784,073

TOTAL ENERGY

905,193

FINANCIALS - 12.0%

Capital Markets - 1.3%

BlackRock, Inc. Class A

20,300

4,714

Charles Schwab Corp.

1,802,100

33,916

Franklin Resources, Inc.

260,400

27,433

Goldman Sachs Group, Inc.

336,100

56,747

T. Rowe Price Group, Inc.

705,200

37,552

 

160,362

Commercial Banks - 4.2%

Banco Bradesco SA (PN) sponsored ADR

62,600

1,369

Banco do Brasil SA

703,900

11,833

BOC Hong Kong Holdings Ltd.

2,423,500

5,445

Center Financial Corp.

50,000

230

China Citic Bank Corp. Ltd. Class H

4,460,000

3,775

China Merchants Bank Co. Ltd. (H Shares)

461,000

1,199

HDFC Bank Ltd. sponsored ADR (c)

47,700

6,205

Industrial & Commercial Bank of China Ltd. (H Shares)

14,176,000

11,674

Itau Unibanco Banco Multiplo SA ADR

736,370

16,819

M&T Bank Corp. (c)

18,800

1,258

PT Bank Central Asia Tbk

2,333,500

1,201

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Commercial Banks - continued

Standard Chartered PLC (United Kingdom)

2,626,126

$ 66,846

State Bank of India

115,430

5,643

Union Bank of India

11,346

65

Wells Fargo & Co.

14,233,785

384,170

 

517,732

Consumer Finance - 0.3%

American Express Co.

876,400

35,512

Diversified Financial Services - 1.9%

BM&F BOVESPA SA

323,200

2,286

Citigroup, Inc.

9,470,900

31,349

CME Group, Inc.

18,400

6,181

Gimv NV

18,400

962

Hong Kong Exchanges and Clearing Ltd.

1,040,900

18,519

IntercontinentalExchange, Inc. (a)

100,000

11,230

JPMorgan Chase & Co.

3,878,719

161,626

MSCI, Inc. Class A (a)

74,300

2,363

 

234,516

Insurance - 4.0%

ACE Ltd.

310,900

15,669

Admiral Group PLC

837,500

16,093

Berkshire Hathaway, Inc. Class A (a)

3,493

346,506

China Life Insurance Co. Ltd. ADR (c)

14,300

1,049

Fairfax Financial Holdings Ltd. (sub. vtg.)

48,300

18,848

The Chubb Corp.

1,165,600

57,324

The Travelers Companies, Inc.

668,900

33,351

 

488,840

Real Estate Investment Trusts - 0.1%

Corporate Office Properties Trust (SBI)

30,700

1,125

Simon Property Group, Inc.

45,872

3,661

Starwood Property Trust, Inc.

145,300

2,745

 

7,531

Real Estate Management & Development - 0.2%

China Overseas Land & Investment Ltd.

1,560,000

3,269

Swire Pacific Ltd. (A Shares)

282,000

3,410

Wharf Holdings Ltd.

2,381,000

13,664

 

20,343

TOTAL FINANCIALS

1,464,836

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - 12.9%

Biotechnology - 3.5%

Actelion Ltd. (Reg.) (a)

296,029

$ 15,781

Alexion Pharmaceuticals, Inc. (a)

399,700

19,513

Allos Therapeutics, Inc. (a)(c)

372,600

2,448

Amgen, Inc. (a)

261,300

14,782

Celgene Corp. (a)

847,400

47,183

Gilead Sciences, Inc. (a)

4,479,200

193,860

Human Genome Sciences, Inc. (a)(c)

816,200

24,976

ImmunoGen, Inc. (a)

274,419

2,157

MannKind Corp. (a)(c)

828,333

7,256

MannKind Corp. warrants 8/3/10 (a)(h)

29,881

35

Medivation, Inc. (a)(c)

853,300

32,127

Micromet, Inc. (a)

467,100

3,111

OREXIGEN Therapeutics, Inc. (a)

121,500

904

Regeneron Pharmaceuticals, Inc. (a)

175,300

4,239

RXi Pharmaceuticals Corp. (a)(c)

571,429

2,617

RXi Pharmaceuticals Corp. warrants 2/4/10 (a)

228,571

775

Seattle Genetics, Inc. (a)

165,800

1,685

Targacept, Inc. (a)

1,105,800

23,133

United Therapeutics Corp. (a)

119,500

6,292

Vertex Pharmaceuticals, Inc. (a)

535,700

22,955

Zymogenetics, Inc. (a)(c)

193,400

1,236

 

427,065

Health Care Equipment & Supplies - 2.0%

Alcon, Inc.

215,500

35,417

Baxter International, Inc.

288,700

16,941

Becton, Dickinson & Co.

271,500

21,410

C. R. Bard, Inc.

135,499

10,555

Covidien PLC

1,422,666

68,131

DENTSPLY International, Inc.

719,717

25,312

Edwards Lifesciences Corp. (a)

356,400

30,953

ev3, Inc. (a)

393,800

5,253

ICU Medical, Inc. (a)

27,900

1,017

Inverness Medical Innovations, Inc. (a)

166,300

6,903

Mindray Medical International Ltd. sponsored ADR (c)

34,100

1,157

NuVasive, Inc. (a)

199,400

6,377

Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares)

2,284,000

7,612

Thoratec Corp. (a)

102,800

2,767

 

239,805

Health Care Providers & Services - 1.6%

Emergency Medical Services Corp. Class A (a)

157,100

8,507

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Health Care Providers & Services - continued

Express Scripts, Inc. (a)

589,100

$ 50,928

Henry Schein, Inc. (a)

51,800

2,725

HMS Holdings Corp. (a)

80,400

3,915

Medco Health Solutions, Inc. (a)

2,070,500

132,326

Sinopharm Group Co. Ltd. Class H

438,000

1,539

 

199,940

Health Care Technology - 0.4%

Cerner Corp. (a)

368,700

30,396

Quality Systems, Inc.

337,900

21,217

 

51,613

Life Sciences Tools & Services - 1.2%

Fluidigm Corp. warrants 9/10/10 (a)

1

0

Illumina, Inc. (a)

72,300

2,216

Life Technologies Corp. (a)

516,400

26,972

Mettler-Toledo International, Inc. (a)

552,000

57,954

QIAGEN NV (a)

517,600

11,553

Techne Corp.

47,400

3,250

Thermo Fisher Scientific, Inc. (a)

64,600

3,081

Waters Corp. (a)

651,000

40,336

 

145,362

Pharmaceuticals - 4.2%

Abbott Laboratories

3,134,500

169,232

Allergan, Inc.

173,400

10,926

AstraZeneca PLC (United Kingdom)

1,228,655

57,777

Bristol-Myers Squibb Co.

620,432

15,666

Dr. Reddy's Laboratories Ltd. sponsored ADR (c)

146,900

3,556

Forest Laboratories, Inc. (a)

964,400

30,967

Johnson & Johnson

1,603,700

103,294

MAP Pharmaceuticals, Inc. (a)

599,800

5,716

Merck & Co., Inc.

102,300

3,738

Novo Nordisk AS Series B

450,333

28,763

Optimer Pharmaceuticals, Inc. (a)

116,900

1,319

Salix Pharmaceuticals Ltd. (a)

238,100

6,048

Shionogi & Co. Ltd.

108,000

2,343

Teva Pharmaceutical Industries Ltd. sponsored ADR

1,002,900

56,343

Valeant Pharmaceuticals International (a)(c)

530,700

16,871

 

512,559

TOTAL HEALTH CARE

1,576,344

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - 2.9%

Aerospace & Defense - 0.2%

AeroVironment, Inc. (a)

39,500

$ 1,149

DigitalGlobe, Inc.

53,000

1,283

GeoEye, Inc. (a)

78,200

2,180

Precision Castparts Corp.

34,500

3,807

Raytheon Co.

21,100

1,087

United Technologies Corp.

182,100

12,640

 

22,146

Air Freight & Logistics - 0.7%

C.H. Robinson Worldwide, Inc.

1,374,272

80,711

Airlines - 0.0%

Ryanair Holdings PLC sponsored ADR (a)

42,500

1,140

Southwest Airlines Co.

345,200

3,946

 

5,086

Building Products - 0.1%

Armstrong World Industries, Inc. (a)

175,800

6,844

Commercial Services & Supplies - 0.2%

APAC Customer Services, Inc. (a)(c)(d)

2,732,044

16,283

Stericycle, Inc. (a)

191,900

10,587

Waste Connections, Inc. (a)

35,400

1,180

 

28,050

Construction & Engineering - 0.2%

Jacobs Engineering Group, Inc. (a)

503,200

18,925

Electrical Equipment - 0.3%

A123 Systems, Inc.

43,400

974

American Superconductor Corp. (a)(c)

349,100

14,278

China High Speed Transmission Equipment Group Co. Ltd.

2,709,000

6,577

Cooper Industries PLC Class A

332,645

14,184

Nexxus Lighting, Inc. (a)

109,400

372

 

36,385

Industrial Conglomerates - 0.0%

Beijing Enterprises Holdings Ltd.

635,500

4,603

Carlisle Companies, Inc.

32,100

1,100

 

5,703

Machinery - 0.8%

China Automation Group Ltd.

5,128,000

4,183

Danaher Corp.

740,177

55,661

Duoyuan Global Water, Inc. ADR (c)

90,300

3,232

Oshkosh Co.

61,700

2,285

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Machinery - continued

PACCAR, Inc.

502,723

$ 18,234

SmartHeat, Inc. (a)(c)

630,800

9,159

 

92,754

Marine - 0.0%

Kuehne & Nagel International AG

12,190

1,183

Professional Services - 0.1%

Robert Half International, Inc.

243,700

6,514

SEEK Ltd.

1,000,000

6,198

Verisk Analytics, Inc.

200,800

6,080

 

18,792

Road & Rail - 0.3%

Canadian National Railway Co.

514,400

28,074

CSX Corp.

73,600

3,569

Dollar Thrifty Automotive Group, Inc. (a)

64,400

1,649

Knight Transportation, Inc.

38,000

733

Norfolk Southern Corp.

23,300

1,221

 

35,246

Trading Companies & Distributors - 0.0%

Fastenal Co. (c)

56,400

2,348

W.W. Grainger, Inc.

22,000

2,130

 

4,478

TOTAL INDUSTRIALS

356,303

INFORMATION TECHNOLOGY - 30.2%

Communications Equipment - 2.1%

Aruba Networks, Inc. (a)

3,500

37

BYD Electronic International Co. Ltd. (a)

12,928,500

10,530

Cisco Systems, Inc. (a)

3,709,800

88,813

F5 Networks, Inc. (a)

343,000

18,172

Motorola, Inc.

501,500

3,892

QUALCOMM, Inc.

3,075,000

142,250

ZTE Corp. (H Shares)

34,400

211

 

263,905

Computers & Peripherals - 6.9%

Apple, Inc. (a)

3,004,453

633,519

Compellent Technologies, Inc. (a)

171,400

3,887

Dell, Inc. (a)

461,000

6,620

EMC Corp. (a)

69,900

1,221

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Computers & Peripherals - continued

Hewlett-Packard Co.

3,184,100

$ 164,013

NetApp, Inc. (a)

836,300

28,760

Western Digital Corp. (a)

176,100

7,775

 

845,795

Electronic Equipment & Components - 1.1%

Agilent Technologies, Inc.

259,100

8,050

Amphenol Corp. Class A (a)

1,161,840

53,654

BYD Co. Ltd. (H Shares) (a)(c)

4,365,190

38,263

Corning, Inc.

139,000

2,684

FLIR Systems, Inc. (a)

911,700

29,831

Itron, Inc. (a)

18,500

1,250

Prime View International Co. Ltd. sponsored GDR (a)(e)

89,500

2,356

Samsung SDI Co. Ltd.

9,106

1,160

Tech Data Corp. (a)

26,500

1,236

Wasion Group Holdings Ltd.

4,128,000

4,290

 

142,774

Internet Software & Services - 7.5%

AOL, Inc. (a)

164,999

3,841

Baidu.com, Inc. sponsored ADR (a)

67,800

27,881

Constant Contact, Inc. (a)

199,000

3,184

Google, Inc. Class A (a)

1,119,871

694,297

LogMeIn, Inc.

106,500

2,125

NetEase.com, Inc. sponsored ADR (a)(c)

911,000

34,263

NHN Corp. (a)

6,949

1,144

Open Text Corp. (a)

49,400

2,008

Rackspace Hosting, Inc. (a)

117,800

2,456

SkillSoft PLC sponsored ADR (a)

111,800

1,172

Sohu.com, Inc. (a)(c)

282,100

16,159

Tencent Holdings Ltd.

4,614,700

99,802

VistaPrint Ltd. (a)

317,200

17,973

WebMD Health Corp. (a)

230,036

8,854

 

915,159

IT Services - 4.2%

Accenture PLC Class A

1,747,400

72,517

Cognizant Technology Solutions Corp. Class A (a)

430,400

19,497

Echo Global Logistics, Inc.

28,600

363

Fidelity National Information Services, Inc.

1,120,300

26,260

Fiserv, Inc. (a)

46,700

2,264

Global Payments, Inc.

14,300

770

Hewitt Associates, Inc. Class A (a)

409,500

17,305

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

IT Services - continued

Infosys Technologies Ltd. sponsored ADR

16,300

$ 901

MasterCard, Inc. Class A

179,469

45,940

Redecard SA

413,200

6,782

The Western Union Co.

46,600

878

VeriFone Holdings, Inc. (a)

4,800

79

Visa, Inc. Class A

3,653,800

319,561

Wipro Ltd. sponsored ADR (c)

58,100

1,294

 

514,411

Semiconductors & Semiconductor Equipment - 3.4%

Altera Corp.

1,069,700

24,207

Analog Devices, Inc.

38,200

1,206

ARM Holdings PLC sponsored ADR

305,800

2,618

ASML Holding NV (NY Shares)

367,600

12,531

Atheros Communications, Inc. (a)

28,983

992

Avago Technologies Ltd.

270,800

4,953

Broadcom Corp. Class A (a)

892,000

28,053

Cree, Inc. (a)

729,000

41,094

Cymer, Inc. (a)

131,000

5,028

Intel Corp.

441,000

8,996

KLA-Tencor Corp.

241,100

8,718

Marvell Technology Group Ltd. (a)

3,684,700

76,458

MediaTek, Inc.

65,000

1,134

NVIDIA Corp. (a)

2,965,600

55,397

ON Semiconductor Corp. (a)

488,000

4,299

Samsung Electronics Co. Ltd.

154,257

105,698

Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR

2,921,346

33,420

 

414,802

Software - 5.0%

Activision Blizzard, Inc. (a)

3,834,600

42,602

Adobe Systems, Inc. (a)

971,806

35,743

ANSYS, Inc. (a)

173,700

7,549

ArcSight, Inc. (a)

314,239

8,038

Ariba, Inc. (a)

109,800

1,375

AsiaInfo Holdings, Inc. (a)

576,000

17,551

BMC Software, Inc. (a)

1,083,400

43,444

Check Point Software Technologies Ltd. (a)

1,045,300

35,415

Citrix Systems, Inc. (a)

626,800

26,081

CommVault Systems, Inc. (a)

98,800

2,341

Fortinet, Inc.

204,700

3,597

Informatica Corp. (a)

574,409

14,854

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Software - continued

Intuit, Inc. (a)

38,500

$ 1,182

Longtop Financial Technologies Ltd. ADR (a)

204,600

7,574

McAfee, Inc. (a)

1,983,400

80,467

Oracle Corp.

5,625,150

138,041

Pegasystems, Inc.

197,100

6,701

Perfect World Co. Ltd. sponsored ADR Class B (a)

99,100

3,909

Red Hat, Inc. (a)

490,800

15,166

Rovi Corp. (a)

194,000

6,183

Salesforce.com, Inc. (a)

523,700

38,633

Shanda Interactive Entertainment Ltd. sponsored ADR (a)

381,600

20,076

SolarWinds, Inc. (c)

328,800

7,566

Solera Holdings, Inc.

32,900

1,185

Sourcefire, Inc. (a)

967,340

25,876

SuccessFactors, Inc. (a)

163,900

2,717

Sybase, Inc. (a)

55,600

2,413

TIBCO Software, Inc. (a)

592,300

5,704

VanceInfo Technologies, Inc. ADR (a)

237,700

4,566

VMware, Inc. Class A (a)

54,500

2,310

 

608,859

TOTAL INFORMATION TECHNOLOGY

3,705,705

MATERIALS - 5.3%

Chemicals - 0.5%

Ecolab, Inc.

835,300

37,238

Huabao International Holdings Ltd.

15,641,000

16,818

Lubrizol Corp.

61,100

4,457

Valspar Corp.

30,300

822

 

59,335

Containers & Packaging - 0.1%

Owens-Illinois, Inc. (a)

28,300

930

Rock-Tenn Co. Class A

112,000

5,646

Temple-Inland, Inc.

313,100

6,610

 

13,186

Metals & Mining - 4.7%

Alamos Gold, Inc. (a)

104,100

1,244

AngloGold Ashanti Ltd. sponsored ADR

568,800

22,854

B2Gold Corp. (a)

1,404,000

1,617

B2Gold Corp. (a)(e)

500,000

576

BHP Billiton Ltd. sponsored ADR

158,900

12,169

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - continued

Eldorado Gold Corp. (a)

4,402,803

$ 62,523

First Quantum Minerals Ltd.

51,900

3,965

Franco-Nevada Corp.

1,402,200

37,502

Franco-Nevada Corp. (e)

126,300

3,378

Franco-Nevada Corp. warrants 6/16/17 (a)(e)

63,150

397

Goldcorp, Inc.

2,693,301

105,999

Ivanhoe Mines Ltd. (a)

4,017,100

59,302

Kinross Gold Corp.

4,055,076

74,760

Newcrest Mining Ltd.

2,507,164

79,565

Randgold Resources Ltd. sponsored ADR

880,722

69,683

Red Back Mining, Inc. (a)

1,854,804

26,481

Red Back Mining, Inc. (a)(e)

98,900

1,412

Vale SA sponsored ADR

240,900

6,993

Ventana Gold Corp. (a)

164,400

1,261

 

571,681

TOTAL MATERIALS

644,202

TELECOMMUNICATION SERVICES - 0.5%

Diversified Telecommunication Services - 0.1%

AboveNet, Inc. (a)

89,000

5,789

Clearwire Corp.:

rights 6/21/10 (a)

357,050

143

Class A (a)

357,050

2,414

Iliad Group SA

10,223

1,222

Nippon Telegraph & Telephone Corp.

138,400

5,470

Telmex Internacional SAB de CV Series L ADR (c)

155,400

2,758

 

17,796

Wireless Telecommunication Services - 0.4%

American Tower Corp. Class A (a)

287,900

12,440

MTN Group Ltd.

293,200

4,665

NTT DoCoMo, Inc.

2,849

3,978

Sprint Nextel Corp. (a)

647,700

2,371

Vivo Participacoes SA sponsored ADR

614,700

19,056

 

42,510

TOTAL TELECOMMUNICATION SERVICES

60,306

Common Stocks - continued

Shares

Value (000s)

UTILITIES - 0.1%

Multi-Utilities - 0.1%

YTL Corp. Bhd

3,794,910

$ 8,091

Water Utilities - 0.0%

YTL Power International Bhd

3,555

2

TOTAL UTILITIES

8,093

TOTAL COMMON STOCKS

(Cost $9,315,008)

11,485,111

Preferred Stocks - 0.2%

 

 

 

 

Convertible Preferred Stocks - 0.2%

FINANCIALS - 0.0%

Diversified Financial Services - 0.0%

Ning, Inc. Series D 8.00% (a)(h)

541,260

3,191

HEALTH CARE - 0.1%

Biotechnology - 0.1%

Light Sciences Oncology, Inc. (a)(h)

463,700

1,855

Light Sciences Oncology, Inc. Series B (a)(h)

1,792,115

7,168

 

9,023

Health Care Equipment & Supplies - 0.0%

superDimension Ltd. (a)(h)

91,600

1,053

Life Sciences Tools & Services - 0.0%

Fluidigm Corp. (a)

143,925

1,007

TOTAL HEALTH CARE

11,083

INFORMATION TECHNOLOGY - 0.1%

Internet Software & Services - 0.0%

Digg, Inc. Series C, 8.00% (a)(h)

64,821

486

Software - 0.1%

Trion World Network, Inc. 8.00% (h)

602,295

3,307

TOTAL INFORMATION TECHNOLOGY

3,793

TOTAL CONVERTIBLE PREFERRED STOCKS

18,067

Preferred Stocks - continued

Shares

Value (000s)

Nonconvertible Preferred Stocks - 0.0%

TELECOMMUNICATION SERVICES - 0.0%

Diversified Telecommunication Services - 0.0%

Slide, Inc. Series D (a)(h)

809,262

$ 1,003

TOTAL PREFERRED STOCKS

(Cost $34,367)

19,070

Nonconvertible Bonds - 0.1%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.0%

Automobiles - 0.0%

Ford Motor Co.:

6.375% 2/1/29

$ 700

515

6.625% 10/1/28

1,490

1,118

7.45% 7/16/31

2,235

1,975

 

3,608

FINANCIALS - 0.1%

Diversified Financial Services - 0.1%

Ford Holdings LLC 9.3% 3/1/30

6,415

5,902

TOTAL NONCONVERTIBLE BONDS

(Cost $4,295)

9,510

Floating Rate Loans - 0.0%

 

CONSUMER DISCRETIONARY - 0.0%

Automobiles - 0.0%

Ford Motor Co. term loan 3.2871% 12/15/13 (f)

(Cost $5,910)

6,666

6,183

Money Market Funds - 7.4%

Shares

Value (000s)

Fidelity Cash Central Fund, 0.16% (g)

771,494,181

$ 771,494

Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g)

139,250,900

139,251

TOTAL MONEY MARKET FUNDS

(Cost $910,745)

910,745

TOTAL INVESTMENT PORTFOLIO - 101.5%

(Cost $10,270,325)

12,430,619

NET OTHER ASSETS - (1.5)%

(183,763)

NET ASSETS - 100%

$ 12,246,856

Legend

(a) Non-income producing

(b) Investment made with cash collateral received from securities on loan.

(c) Security or a portion of the security is on loan at period end.

(d) Affiliated company

(e) 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 end of the period, the value of these securities amounted to $13,859,000 or 0.1% of net assets.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $24,448,000 or 0.2% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition
Cost (000s)

Digg, Inc. Series C, 8.00%

9/23/08

$ 683

Govi High Power Exploration, Inc.

9/28/07

$ 5,500

GoviEx IP Holdings, Inc.

7/28/08

$ 0*

Light Sciences Oncology, Inc.

7/9/08

$ 3,881

Light Sciences Oncology, Inc. Series B

4/4/07

$ 15,000

MannKind Corp. warrants 8/3/10

8/3/05

$ 1

Ning, Inc. Series D 8.00%

3/19/08

$ 3,870

Slide, Inc. Series D

1/14/08

$ 3,693

superDimension Ltd.

2/27/08 - 5/22/08

$ 1,963

The Weinstein Co. III Holdings, LLC Class A-1

10/19/05

$ 2,267

Trion World Network, Inc. 8.00%

8/22/08

$ 3,307

* Amount represents less than $1,000.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 3,733

Fidelity Securities Lending Cash Central Fund

1,772

Total

$ 5,505

Other Affiliated Issuers

An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:

Affiliates
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of
period

APAC Customer Services, Inc.

$ -

$ 14,329

$ -

$ -

$ 16,283

Sable Mining Africa Ltd.

-

4,932

-

-

5,142

Total

$ -

$ 19,261

$ -

$ -

$ 21,425

Other Information

The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 1,818,320

$ 1,725,900

$ 91,570

$ 850

Consumer Staples

945,809

894,567

51,242

-

Energy

905,193

893,851

5,842

5,500

Financials

1,468,027

1,403,881

60,955

3,191

Health Care

1,587,427

1,506,263

70,081

11,083

Industrials

356,303

340,940

15,363

-

Information Technology

3,709,498

3,552,609

153,096

3,793

Materials

644,202

627,384

16,818

-

Telecommunication Services

61,309

50,858

9,448

1,003

Utilities

8,093

8,093

-

-

Corporate Bonds

9,510

-

9,510

-

Floating Rate Loans

6,183

-

6,183

-

Money Market Funds

910,745

910,745

-

-

Total Investments in Securities:

$ 12,430,619

$ 11,915,091

$ 490,108

$ 25,420

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

Investments in Securities:
(Amounts in thousands)

 

Beginning Balance

$ 67,974

Total Realized Gain (Loss)

(16,265)

Total Unrealized Gain (Loss)

(9,129)

Cost of Purchases

45

Proceeds of Sales

(11,735)

Amortization/Accretion

-

Transfers in/out of Level 3

(5,470)

Ending Balance

$ 25,420

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009

$ (5,859)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America

78.4%

Canada

5.6%

China

2.4%

United Kingdom

2.1%

Ireland

1.3%

Bermuda

1.0%

Netherlands Antilles

1.0%

Others (individually less than 1%)

8.2%

 

100.0%

Income Tax Information

At December 31, 2009, the fund had a capital loss carryforward of approximately $1,550,171,000 of which $726,035,000 and $824,136,000 will expire on December 31, 2016 and 2017, respectively.

The fund intends to elect to defer to its fiscal year ending December 31, 2010 approximately $84,647,000 of losses recognized during the period November 1, 2009 to December 31, 2009.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

December 31, 2009

Assets

Investment in securities, at value (including securities loaned of $134,730) - See accompanying schedule:

Unaffiliated issuers (cost $9,340,319)

$ 11,498,449

 

Fidelity Central Funds (cost $910,745)

910,745

 

Other affiliated issuers (cost $19,261)

21,425

 

Total Investments (cost $10,270,325)

 

$ 12,430,619

Cash

305

Receivable for investments sold

2,585

Receivable for fund shares sold

25,058

Dividends receivable

7,162

Interest receivable

333

Distributions receivable from Fidelity Central Funds

257

Prepaid expenses

48

Other receivables

303

Total assets

12,466,670

 

 

 

Liabilities

Payable for investments purchased

$ 45,577

Payable for fund shares redeemed

22,422

Accrued management fee

6,427

Distribution fees payable

3,311

Other affiliated payables

2,402

Other payables and accrued expenses

424

Collateral on securities loaned, at value

139,251

Total liabilities

219,814

 

 

 

Net Assets

$ 12,246,856

Net Assets consist of:

 

Paid in capital

$ 11,832,430

Accumulated net investment loss

(45)

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(1,745,839)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

2,160,310

Net Assets

$ 12,246,856

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Assets and Liabilities - continued

 Amounts in thousands (except per-share amounts)

December 31, 2009

 

 

 

Calculation of Maximum Offering Price

 Class A:
Net Asset Value
and redemption price per share ($4,264,638 ÷ 247,403 shares)

$ 17.24

 

 

 

Maximum offering price per share (100/94.25 of $17.24)

$ 18.29

Class T:
Net Asset Value
and redemption price per share ($1,557,262 ÷ 91,154 shares)

$ 17.08

 

 

 

Maximum offering price per share (100/96.50 of $17.08)

$ 17.70

Class B:
Net Asset Value
and offering price per share ($400,943 ÷ 24,313 shares)A

$ 16.49

 

 

 

Class C:
Net Asset Value
and offering price per share ($1,798,828 ÷ 108,671 shares)A

$ 16.55

 

 

 

Institutional Class:
Net Asset Value
, offering price and redemption price per share ($4,225,185 ÷ 242,937 shares)

$ 17.39

A Redemption price per share is equal to net asset value less any applicable contingent deferred sales charge.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

 Amounts in thousands

Year ended December 31, 2009

Investment Income

 

 

Dividends

 

$ 108,289

Interest

 

656

Income from Fidelity Central Funds

 

5,505

Total income

 

114,450

Expenses

Management fee
Basic fee

$ 54,209

Performance adjustment

8,928

Transfer agent fees

25,498

Distribution fees

33,054

Accounting and security lending fees

1,440

Custodian fees and expenses

608

Independent trustees' compensation

65

Registration fees

771

Audit

93

Legal

49

Miscellaneous

183

Total expenses before reductions

124,898

Expense reductions

(865)

124,033

Net investment income (loss)

(9,583)

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(358,609)

Foreign currency transactions

(184)

Capital gain distributions from Fidelity Central Funds

9

Total net realized gain (loss)

 

(358,784)

Change in net unrealized appreciation (depreciation) on:

Investment securities

2,979,201

Assets and liabilities in foreign currencies

5

Total change in net unrealized appreciation (depreciation)

 

2,979,206

Net gain (loss)

2,620,422

Net increase (decrease) in net assets resulting from operations

$ 2,610,839

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
December 31,
2009

Year ended
December 31,
2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ (9,583)

$ 11,706

Net realized gain (loss)

(358,784)

(1,357,004)

Change in net unrealized appreciation (depreciation)

2,979,206

(3,202,536)

Net increase (decrease) in net assets resulting
from operations

2,610,839

(4,547,834)

Distributions to shareholders from net investment income

(3,220)

(4,517)

Distributions to shareholders from net realized gain

(12,352)

(56,382)

Total distributions

(15,572)

(60,899)

Share transactions - net increase (decrease)

1,323,677

3,443,380

Total increase (decrease) in net assets

3,918,944

(1,165,353)

 

 

 

Net Assets

Beginning of period

8,327,912

9,493,265

End of period (including accumulated net investment loss of $45 and undistributed net investment income of $2,772, respectively)

$ 12,246,856

$ 8,327,912

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class A

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.36

$ 21.65

$ 18.37

$ 16.65

$ 13.99

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  - G

  .05

  .08

  .06

  .02

Net realized and unrealized gain (loss)

  3.89

  (8.22)

  3.65

  1.78

  2.64

Total from investment operations

  3.89

  (8.17)

  3.73

  1.84

  2.66

Distributions from net investment income

  -

  - G

  (.06)

  (.03)

  -

Distributions from net realized gain

  (.01)

  (.12)

  (.39)

  (.08)

  -

Total distributions

  (.01)

  (.12)

  (.45)

  (.12) H

  -

Net asset value, end of period

$ 17.24

$ 13.36

$ 21.65

$ 18.37

$ 16.65

Total Return A, B

  29.12%

  (37.92)%

  20.26%

  11.06%

  19.01%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.19%

  1.10%

  1.09%

  1.12%

  1.17%

Expenses net of fee waivers, if any

  1.19%

  1.10%

  1.09%

  1.12%

  1.17%

Expenses net of all reductions

  1.18%

  1.10%

  1.08%

  1.11%

  1.13%

Net investment income (loss)

  -% I

  .26%

  .42%

  .37%

  .13%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 4,265

$ 2,614

$ 2,630

$ 1,823

$ 1,019

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

G Amount represents less than $.01 per share.

H Total distributions of $.12 per share is comprised of distributions from net investment income of $.034 and distributions from net realized gain of $.083 per share.

I Amount represents less than .01%

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class T

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.26

$ 21.56

$ 18.29

$ 16.57

$ 13.96

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  (.04)

  - G

  .04

  .03

  (.01)

Net realized and unrealized gain (loss)

  3.86

  (8.18)

  3.62

  1.77

  2.62

Total from investment operations

  3.82

  (8.18)

  3.66

  1.80

  2.61

Distributions from net realized gain

  -

  (.12)

  (.39)

  (.08)

  -

Net asset value, end of period

$ 17.08

$ 13.26

$ 21.56

$ 18.29

$ 16.57

Total Return A, B

  28.81%

  (38.13)%

  20.00%

  10.90%

  18.70%

Ratios to Average Net D, F

 

 

 

 

 

Expenses before reductions

  1.45%

  1.34%

  1.31%

  1.32%

  1.38%

Expenses net of fee waivers, if any

  1.45%

  1.34%

  1.31%

  1.32%

  1.38%

Expenses net of all reductions

  1.44%

  1.34%

  1.31%

  1.31%

  1.34%

Net investment income (loss)

  (.25)%

  .02%

  .19%

  .17%

  (.08)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,557

$ 1,254

$ 2,185

$ 2,165

$ 1,393

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the sales charges.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

G Amount represents less than $.01 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class B

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 12.88

$ 21.04

$ 17.97

$ 16.35

$ 13.85

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  (.11)

  (.10)

  (.08)

  (.07)

  (.10)

Net realized and unrealized gain (loss)

  3.72

  (7.94)

  3.54

  1.74

  2.60

Total from investment operations

  3.61

  (8.04)

  3.46

  1.67

  2.50

Distributions from net realized gain

  -

  (.12)

  (.39)

  (.05)

  -

Net asset value, end of period

$ 16.49

$ 12.88

$ 21.04

$ 17.97

$ 16.35

Total Return A, B

  28.03%

  (38.41)%

  19.24%

  10.23%

  18.05%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  2.01%

  1.91%

  1.89%

  1.93%

  1.98%

Expenses net of fee waivers, if any

  2.00%

  1.91%

  1.89%

  1.93%

  1.98%

Expenses net of all reductions

  1.99%

  1.91%

  1.89%

  1.92%

  1.94%

Net investment income (loss)

  (.81)%

  (.55)%

  (.39)%

  (.44)%

  (.68)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 401

$ 313

$ 489

$ 452

$ 339

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class C

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 12.92

$ 21.10

$ 18.00

$ 16.37

$ 13.86

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) C

  (.11)

  (.09)

  (.06)

  (.06)

  (.09)

Net realized and unrealized gain (loss)

  3.74

  (7.97)

  3.55

  1.74

  2.60

Total from investment operations

  3.63

  (8.06)

  3.49

  1.68

  2.51

Distributions from net realized gain

  -

  (.12)

  (.39)

  (.05)

  -

Net asset value, end of period

$ 16.55

$ 12.92

$ 21.10

$ 18.00

$ 16.37

Total Return A, B

  28.10%

  (38.39)%

  19.37%

  10.28%

  18.11%

Ratios to Average Net Assets D, F

 

 

 

 

 

Expenses before reductions

  1.95%

  1.85%

  1.82%

  1.85%

  1.89%

Expenses net of fee waivers, if any

  1.95%

  1.85%

  1.82%

  1.85%

  1.89%

Expenses net of all reductions

  1.94%

  1.85%

  1.82%

  1.83%

  1.85%

Net investment income (loss)

  (.76)%

  (.49)%

  (.32)%

  (.35)%

  (.59)%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 1,799

$ 1,355

$ 1,879

$ 1,596

$ 1,006

Portfolio turnover rate E

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Total returns do not include the effect of the contingent deferred sales charge.

C Calculated based on average shares outstanding during the period.

D Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

E Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

F Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Institutional Class

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 13.49

$ 21.84

$ 18.52

$ 16.78

$ 14.05

Income from Investment Operations

 

 

 

 

 

Net investment income (loss) B

  .03

  .09

  .14

  .12

  .07

Net realized and unrealized gain (loss)

  3.93

  (8.30)

  3.67

  1.79

  2.66

Total from investment operations

  3.96

  (8.21)

  3.81

  1.91

  2.73

Distributions from net investment income

  (.02)

  (.02)

  (.10)

  (.09)

  -

Distributions from net realized gain

  (.04)

  (.12)

  (.39)

  (.08)

  -

Total distributions

  (.06)

  (.14)

  (.49)

  (.17) F

  -

Net asset value, end of period

$ 17.39

$ 13.49

$ 21.84

$ 18.52

$ 16.78

Total Return A

  29.37%

  (37.76)%

  20.57%

  11.40%

  19.43%

Ratios to Average Net Assets C, E

 

 

 

 

 

Expenses before reductions

  .96%

  .86%

  .81%

  .83%

  .84%

Expenses net of fee waivers, if any

  .96%

  .86%

  .81%

  .83%

  .84%

Expenses net of all reductions

  .95%

  .85%

  .81%

  .82%

  .79%

Net investment income (loss)

  .24%

  .50%

  .69%

  .66%

  .47%

Supplemental Data

 

 

 

 

 

Net assets, end of period (in millions)

$ 4,225

$ 2,793

$ 2,309

$ 1,540

$ 498

Portfolio turnover rate D

  58%

  74%

  57%

  79%

  65%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Calculated based on average shares outstanding during the period.

C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

F Total distributions of $.17 per share is comprised of distributions from net investment income of $.086 and distributions from net realized gain of $.083 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2009

(Amounts in thousands except ratios)

1. Organization.

Fidelity Advisor New Insights Fund (the Fund) is a fund of Fidelity Contrafund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Class A, Class T, Class B, Class C, and Institutional Class shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. Class B shares will automatically convert to Class A shares after a holding period of seven years from the initial date of purchase. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent and distribution and service plan fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 16, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise,

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3. Significant Accounting Policies - continued

Security Valuation - continued

comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as level 3 in the hierarchy.

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles. In addition, the Fund claimed a portion of the payment made to redeeming shareholders as a distribution for income tax purposes.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Book-tax differences are primarily due to short-term gain distributions from Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, deferred trustees compensation, capital loss carryforwards and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 2,289,678

 

Gross unrealized depreciation

(258,870)

 

Net unrealized appreciation (depreciation)

$ 2,030,808

 

 

 

 

Tax Cost

$ 10,399,811

 

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 18,489

 

Capital loss carryforward

$ (1,550,171)

 

Net unrealized appreciation (depreciation)

$ 2,030,823

 

The tax character of distributions paid was as follows:

 

December 31, 2009

December 31, 2008

Ordinary Income

$ 15,572

$ 7,041

Long-term Capital Gains

-

53,858

Total

$ 15,572

$ 60,899

4. Operating Policies.

Restricted Securities. The Fund may 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

4. Operating Policies - continued

Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $6,501,020 and $5,170,633, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to the management fee is based on the relative investment performance of the Institutional Class of the Fund, as compared to an appropriate benchmark index. The Fund's performance period began on October 1, 2007 and subsequent months will be added until the performance period includes 36 months. The performance adjustment took effect in September 2008. For the period, the total annual management fee rate, including the performance adjustment, was .65% of the Fund's average net assets.

Distribution and Service Plan. In accordance with Rule 12b-1 of the 1940 Act, the Fund has adopted separate Distribution and Service Plans for each class of shares. Certain classes pay Fidelity Distributors Corporation (FDC), an affiliate of FMR, separate Distribution and Service Fees, each of which is based on an annual percentage of each class' average net assets. In addition, FDC may pay financial intermediaries for selling shares of the Fund and providing shareholder support services.

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Distribution and Service Plan - continued

For the period, the Distribution and Service Fee rates and the total amounts paid to and retained by FDC were as follows:

 

Distribution
Fee

Service
Fee

Paid to
FDC

Retained
by FDC

Class A

-%

.25%

$ 8,153

$ 444

Class T

.25%

.25%

6,610

28

Class B

.75%

.25%

3,378

2,544

Class C

.75%

.25%

14,913

3,539

 

 

 

$ 33,054

$ 6,555

Sales Load. FDC receives a front-end sales charge of up to 5.75% for selling Class A shares, and 3.50% for selling Class T shares, some of which is paid to financial intermediaries for selling shares of the Fund. FDC receives the proceeds of contingent deferred sales charges levied on Class A, Class T, Class B, and Class C redemptions. These charges depend on the holding period. The deferred sales charges range from 5% to 1% for Class B, 1% for Class C, 1.00% to .50% for certain purchases of Class A shares and .25% for certain purchases of Class T shares.

For the period, sales charge amounts retained by FDC were as follows:

 

Retained
by FDC

Class A

$ 1,102

Class T

196

Class B*

784

Class C*

252

 

$ 2,334

* When Class B and Class C shares are initially sold, FDC pays commissions from its own resources to financial intermediaries through which the sales are made.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of the respective classes of the Fund. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

6. Fees and Other Transactions with Affiliates - continued

Transfer Agent Fees - continued

For the period, the total transfer agent fees paid by each class were as follows:

 

Amount

% of
Average
Net Assets

Class A

$ 8,318

.25

Class T

3,435

.26

Class B

1,109

.33

Class C

3,933

.26

Institutional Class

8,703

.27

 

$ 25,498

 

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $65 for the period.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $46 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to

Annual Report

8. Security Lending - continued

the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $1,772.

9. Expense Reductions.

FMR voluntarily agreed to reimburse each class to the extent annual operating expenses exceeded certain levels of average net assets as noted in the table below. Some expenses, for example interest expense, including commitment fees, are excluded from this reimbursement.

The following classes were in reimbursement during the period:

 

Expense
Limitations

Reimbursement
from adviser

Class B

2.00%

$ 50

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $813 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $2.

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,

2009

2008

From net investment income

 

 

Class A

$ -

$ 5

Institutional Class

3,220

4,512

Total

$ 3,220

$ 4,517

From net realized gain

 

 

Class A

$ 2,465

$ 15,552

Class T

-

11,399

Class B

-

2,709

Class C

-

10,794

Institutional Class

9,887

15,928

Total

$ 12,352

$ 56,382

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

Years ended December 31,

2009

2008

2009

2008

Class A

 

 

 

 

Shares sold

104,375

119,010

$ 1,494,493

$ 2,140,557

Reinvestment of distributions

270

733

4,650

14,197

Shares redeemed

(52,894)

(45,547)

(757,053)

(756,171)

Net increase (decrease)

51,751

74,196

$ 742,090

$ 1,398,583

Class T

 

 

 

 

Shares sold

21,310

23,040

$ 301,368

$ 407,661

Reinvestment of distributions

-

555

-

10,694

Shares redeemed

(24,666)

(30,471)

(343,847)

(526,856)

Net increase (decrease)

(3,356)

(6,876)

$ (42,479)

$ (108,501)

Class B

 

 

 

 

Shares sold

5,587

6,574

$ 75,985

$ 114,734

Reinvestment of distributions

-

121

-

2,270

Shares redeemed

(5,591)

(5,630)

(75,502)

(93,597)

Net increase (decrease)

(4)

1,065

$ 483

$ 23,407

Class C

 

 

 

 

Shares sold

26,780

39,154

$ 366,996

$ 680,481

Reinvestment of distributions

-

427

-

8,052

Shares redeemed

(22,967)

(23,763)

(310,754)

(381,933)

Net increase (decrease)

3,813

15,818

$ 56,242

$ 306,600

Institutional Class

 

 

 

 

Shares sold

125,440

157,886

$ 1,816,051

$ 2,763,287

Reinvestment of distributions

1,257

834

20,220

14,720

Shares redeemed

(90,870)

(57,341)

(1,268,930)

(954,716)

Net increase (decrease)

35,827

101,379

$ 567,341

$ 1,823,291

12. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Advisor New Insights 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 Advisor New Insights Fund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Advisor New Insights 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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 16, 2010

Annual Report

Trustees and Officers

The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-877-208-0098.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Edward C. Johnson 3d (79)

 

Year of Election or Appointment: 1984

Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007).

James C. Curvey (74)

 

Year of Election or Appointment: 2007

Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation

Dennis J. Dirks (61)

 

Year of Election or Appointment: 2005

Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (56)

 

Year of Election or Appointment: 2008

Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association.

Ned C. Lautenbach (65)

 

Year of Election or Appointment: 2000

Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (65)

 

Year of Election or Appointment: 2008

Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).

Cornelia M. Small (65)

 

Year of Election or Appointment: 2005

Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (70)

 

Year of Election or Appointment: 2001

Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science.

David M. Thomas (60)

 

Year of Election or Appointment: 2008

Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).

Michael E. Wiley (59)

 

Year of Election or Appointment: 2008

Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).

Advisory Board Member and Executive Officers:

Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Peter S. Lynch (65)

 

Year of Election or Appointment: 2003

Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Kenneth B. Robins (40)

 

Year of Election or Appointment: 2008

President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004).

Bruce T. Herring (44)

 

Year of Election or Appointment: 2006

Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds.

Brian B. Hogan (45)

 

Year of Election or Appointment: 2009

Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager.

Scott C. Goebel (41)

 

Year of Election or Appointment: 2008

Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).

William C. Coffey (40)

 

Year of Election or Appointment: 2009

Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments.

Holly C. Laurent (55)

 

Year of Election or Appointment: 2008

Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006).

Christine Reynolds (51)

 

Year of Election or Appointment: 2008

Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007).

Kenneth A. Rathgeber (62)

 

Year of Election or Appointment: 2004

Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc.(2005-present).

Jeffrey S. Christian (48)

 

Year of Election or Appointment: 2009

Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004).

Bryan A. Mehrmann (48)

 

Year of Election or Appointment: 2005

Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004).

Adrien E. Deberghes (42)

 

Year of Election or Appointment: 2008

Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005).

John R. Hebble (51)

 

Year of Election or Appointment: 2009

Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments.

Paul M. Murphy (62)

 

Year of Election or Appointment: 2007

Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007).

Gary W. Ryan (51)

 

Year of Election or Appointment: 2005

Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005).

Annual Report

Distributions (Unaudited)

The Board of Trustees of Fidelity Advisor New Insights Fund voted to pay to shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities:

 

Pay Date

Record Date

Capital Gains

Institutional Class

02/08/10

02/05/10

$.03

The Institutional Class designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

The Institutional Class designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

Advisor New Insights Fund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Annual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for each class, as well as the fund's relative investment performance for each class measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Institutional Class (Class I) and Class B of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. The returns of Institutional Class (Class I) and Class B show the performance of the highest and lowest performing classes, respectively (based on five-year performance). The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten numbers noted below each chart correspond to the percentile box and represent the percentage of funds in the peer group whose performance was equal to or lower than that of the class indicated. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Advisor New Insights Fund


fid5103

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Institutional Class (Class I) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Institutional Class (Class I) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark. The Board considered that the variations in performance among the fund's classes reflect the variations in class expenses, which result in lower performance for higher expense classes.

The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Class A through May 31, 2009 and stated that it exceeded the fund's benchmark.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Annual Report

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Advisor New Insights Fund


fid5105

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for 2008 represents calculations for performance periods that differ from the periods shown in the performance charts above.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, fund-paid 12b-1 fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each of Class A, Class B, Class C, and Institutional Class ranked below its competitive median for 2008 and the total expenses of Class T ranked above its competitive median for 2008. The Board considered that the total expenses for Class T were above the median primarily because its 12b-1 fee is higher than the typical front-end load class. The Board noted that the fund offers multiple classes, each of which has a different sales load and 12b-1 fee structure, and that the multiple structures are intended to offer a range of pricing options for the intermediary market. The Board also noted that the total expenses of the classes vary primarily by the level of their 12b-1 fees, although differences in transfer agent fees may also cause expenses to vary from class to class.

Annual Report

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable, although in one case above the median of the universe presented for comparison, in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.

Annual Report

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Adviser

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Research & Analysis Company

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors
(U.K.) Ltd.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc.

Boston, MA

Custodian

Brown Brothers Harriman & Co.

Boston, MA

ANIFI-UANN-0210
1.796411.106

fid5077

Fidelity®

Contrafund®

Annual Report

December 31, 2009
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

The Chairman's message to shareholders.

Performance

<Click Here>

How the fund has done over time.

Management's Discussion

<Click Here>

The manager's review of fund performance, strategy and outlook.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

<Click Here>

 

Trustees and Officers

<Click Here>

 

Distributions

<Click Here>

 

Board Approval of Investment Advisory Contracts and Management Fees

<Click Here>

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-544-8544 to request a free copy of the proxy voting guidelines.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other 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 LLC or an affiliated company.

Annual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2009

Past 1
year

Past 5
years

Past 10
years

Contrafund®

29.23%

4.75%

3.17%

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Contrafund®, a class of the fund, on December 31, 1999. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period.


fid5120

Annual Report

Management's Discussion of Fund Performance

Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.

Comments from William Danoff, Portfolio Manager of Fidelity® Contrafund®: It was a relatively good year for the fund, whose Retail Class shares returned 29.23% for the 12-month period ending December 31, 2009, surpassing the S&P 500 by almost three percentage points. Relative performance was driven by good stock selection and an increased overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Similarly, stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed, as did our foreign holdings, which were bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 to December 31, 2009).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Annual Report

Shareholder Expense Example - continued

 

Annualized Expense Ratio

Beginning
Account Value
July 1, 2009

Ending
Account Value
December 31, 2009

Expenses Paid
During Period*
July 1, 2009
to December 31, 2009

Contrafund

.99%

 

 

 

Actual

 

$ 1,000.00

$ 1,222.90

$ 5.55

HypotheticalA

 

$ 1,000.00

$ 1,020.21

$ 5.04

Class K

.85%

 

 

 

Actual

 

$ 1,000.00

$ 1,223.50

$ 4.76

HypotheticalA

 

$ 1,000.00

$ 1,020.92

$ 4.33

A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Annual Report

Investment Changes (Unaudited)

Top Ten Stocks as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Google, Inc. Class A

6.3

5.0

Apple, Inc.

5.1

3.9

Wells Fargo & Co.

3.2

3.4

Berkshire Hathaway, Inc. Class A

3.2

3.6

The Coca-Cola Co.

2.4

2.4

McDonald's Corp.

2.2

2.3

Visa, Inc. Class A

2.2

1.7

The Walt Disney Co.

1.7

1.5

Gilead Sciences, Inc.

1.6

2.1

Noble Energy, Inc.

1.5

1.5

 

29.4

Top Five Market Sectors as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

30.3

26.2

Consumer Discretionary

15.3

13.2

Health Care

12.9

15.2

Financials

12.4

12.3

Consumer Staples

8.3

9.5

Asset Allocation (% of fund's net assets)

As of December 31, 2009*

As of June 30, 2009**

fid5059

Stocks 95.6%

 

fid5059

Stocks 92.7%

 

fid5062

Bonds 0.1%

 

fid5062

Bonds 0.1%

 

fid5126

Convertible
Securities 0.1%

 

fid5126

Convertible
Securities 0.1%

 

fid5129

Other Investments 0.1%

 

fid5131

Other Investments 0.0%

 

fid5068

Short-Term
Investments and
Net Other Assets 4.1%

 

fid5068

Short-Term
Investments and
Net Other Assets 7.1%

 

* Foreign investments

22.3%

 

** Foreign investments

19.4%

 

fid5135

Annual Report

Investments December 31, 2009

Showing Percentage of Net Assets

Common Stocks - 95.6%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 15.2%

Auto Components - 0.0%

Autoliv, Inc.

150,000

$ 6,504

Gentex Corp.

336,100

5,999

Johnson Controls, Inc.

385,800

10,509

 

23,012

Automobiles - 0.5%

Dongfeng Motor Group Co. Ltd. (H Shares)

31,332,000

44,739

Geely Automobile Holdings Ltd. (c)

261,045,000

142,471

Honda Motor Co. Ltd. sponsored ADR

1,704,244

57,774

Toyota Motor Corp.

1,741,600

73,463

 

318,447

Diversified Consumer Services - 0.2%

Brinks Home Security Holdings, Inc. (a)

190,100

6,205

MegaStudy Co. Ltd.

30,000

6,149

Strayer Education, Inc. (c)

490,338

104,192

 

116,546

Hotels, Restaurants & Leisure - 3.8%

7 Days Group Holdings Ltd. ADR

437,900

5,465

Buffalo Wild Wings, Inc. (a)

89,919

3,621

Cafe de Coral Holdings Ltd.

10,176,000

23,240

Chipotle Mexican Grill, Inc. Class A (a)

2,520,212

222,182

Ctrip.com International Ltd. sponsored ADR (a)

79,000

5,677

Home Inns & Hotels Management, Inc. sponsored ADR (a)

847,000

29,941

Las Vegas Sands Corp. (a)

678,000

10,129

Little Sheep Group Ltd.

18,723,000

10,366

Marriott International, Inc. Class A

1,090,900

29,727

McDonald's Corp.

22,200,670

1,386,210

Panera Bread Co. Class A (a)

463,800

31,061

Sands China Ltd.

20,000,000

24,133

Sodexo SA

779,544

44,491

Starbucks Corp. (a)

8,756,900

201,934

Starwood Hotels & Resorts Worldwide, Inc.

129,500

4,736

Tim Hortons, Inc. (d)

11,116,232

339,156

WMS Industries, Inc. (a)

1,312,128

52,485

 

2,424,554

Household Durables - 0.1%

Gafisa SA sponsored ADR (c)

922,700

29,859

iRobot Corp. (a)

477,616

8,406

 

38,265

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Internet & Catalog Retail - 1.9%

Amazon.com, Inc. (a)

6,452,108

$ 867,938

Expedia, Inc. (a)

1,548,500

39,812

Liberty Media Corp. Interactive Series A (a)

5,534,755

59,997

NetFlix, Inc. (a)

665,439

36,692

Priceline.com, Inc. (a)

878,200

191,887

 

1,196,326

Media - 3.8%

CKX, Inc. (a)

1,781,993

9,391

Comcast Corp. Class A

2,351,200

39,641

DIRECTV (a)

13,897,109

463,469

Discovery Communications, Inc. (a)(d)

10,945,005

335,683

DreamWorks Animation SKG, Inc. Class A (a)

1,173,818

46,894

Jupiter Telecommunications Co.

9,394

9,300

Liberty Media Corp.:

Capital Series A (a)

266,400

6,362

Starz Series A (a)

887,411

40,954

Marvel Entertainment, Inc. (a)

1,522,697

82,347

Naspers Ltd. Class N

1,919,700

77,721

Net Servicos de Comunicacao SA sponsored ADR

450,000

6,089

Pearson PLC

611,200

8,801

Scripps Networks Interactive, Inc. Class A

4,554,952

189,031

The Walt Disney Co.

34,258,406

1,104,834

The Weinstein Co. Holdings, LLC Class A-1 (a)(h)

41,234

15,463

 

2,435,980

Multiline Retail - 0.6%

99 Cents Only Stores (a)

1,116,100

14,587

Big Lots, Inc. (a)

433,100

12,551

Dollar General Corp.

606,100

13,595

Dollar Tree, Inc. (a)

3,910,500

188,877

Dollarama, Inc.

896,150

19,063

Dollarama, Inc. (a)(e)

381,500

8,115

Golden Eagle Retail Group Ltd. (H Shares)

4,500,000

9,127

Mothercare PLC

472,679

5,210

Next PLC

1,323,300

44,548

Parkson Retail Group Ltd.

25,208,500

44,358

PCD Stores Group Ltd.

38,178,000

14,658

 

374,689

Specialty Retail - 2.6%

Advance Auto Parts, Inc.

1,811,900

73,346

Aeropostale, Inc. (a)

1,632,100

55,573

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Specialty Retail - continued

Bed Bath & Beyond, Inc. (a)

857,100

$ 33,110

Belle International Holdings Ltd.

23,500,000

27,223

Best Buy Co., Inc.

1,861,300

73,447

Chico's FAS, Inc. (a)

413,200

5,805

Gymboree Corp. (a)

579,900

25,220

Hengdeli Holdings Ltd.

15,816,000

5,972

Inditex SA

1,069,880

66,460

J. Crew Group, Inc. (a)(c)(d)

6,324,653

282,965

Lumber Liquidators, Inc. (a)(c)

1,066,248

28,575

O'Reilly Automotive, Inc. (a)

681,400

25,975

RadioShack Corp.

1,664,300

32,454

Ross Stores, Inc.

3,067,333

131,006

Rue21, Inc.

108,700

3,053

Staples, Inc.

2,543,000

62,532

TJX Companies, Inc.

17,665,462

645,673

Urban Outfitters, Inc. (a)

3,359,100

117,535

Vitamin Shoppe, Inc.

220,200

4,897

 

1,700,821

Textiles, Apparel & Luxury Goods - 1.7%

Burberry Group PLC

2,239,800

21,683

China Dongxiang Group Co. Ltd.

26,855,000

20,720

Coach, Inc.

2,947,351

107,667

Li Ning Co. Ltd.

10,295,500

39,037

NIKE, Inc. Class B

12,738,600

841,639

Phillips-Van Heusen Corp.

135,000

5,492

Polo Ralph Lauren Corp. Class A

1,016,900

82,349

Shenzhou International Group Holdings Ltd.

3,008,000

3,917

 

1,122,504

TOTAL CONSUMER DISCRETIONARY

9,751,144

CONSUMER STAPLES - 8.3%

Beverages - 2.7%

Anheuser-Busch InBev SA NV

1,056,648

55,057

C&C Group PLC

1,901,079

8,192

Coca-Cola FEMSA SAB de CV sponsored ADR

187,300

12,309

Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR

170,000

17,185

Diageo PLC sponsored ADR

427,867

29,698

Dr Pepper Snapple Group, Inc.

224,300

6,348

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Beverages - continued

Fomento Economico Mexicano SAB de CV sponsored ADR

275,000

$ 13,167

The Coca-Cola Co.

26,733,591

1,523,815

Tsingtao Brewery Co. Ltd. (H Shares)

10,990,000

60,788

 

1,726,559

Food & Staples Retailing - 0.8%

Costco Wholesale Corp.

2,162,823

127,974

Susser Holdings Corp. (a)

505,262

4,340

Tesco PLC

41,279,876

285,538

Wal-Mart Stores, Inc.

1,045,400

55,877

Wm Morrison Supermarkets PLC

6,649,801

29,812

 

503,541

Food Products - 1.8%

Ausnutria Dairy Hunan Co. Ltd. Class H

10,656,000

8,740

Brasil Foods SA sponsored ADR (c)

235,000

12,307

Cadbury PLC

5,942,500

76,592

Campbell Soup Co.

351,200

11,871

Danone

943,247

57,838

General Mills, Inc.

3,706,700

262,471

Kellogg Co.

3,128,134

166,417

Kraft Foods, Inc. Class A

87,700

2,384

Nestle SA (Reg.)

5,259,404

254,983

Ralcorp Holdings, Inc. (a)

1,418,700

84,711

Tingyi (Cayman Island) Holding Corp.

18,320,000

45,331

TreeHouse Foods, Inc. (a)(d)

3,158,796

122,751

Want Want China Holdings Ltd.

106,423,000

74,316

 

1,180,712

Household Products - 2.8%

Colgate-Palmolive Co.

10,436,811

857,384

Hypermarcas SA (a)

1,422,800

32,121

Mcbride PLC

1,845,500

6,311

Procter & Gamble Co.

14,237,519

863,221

 

1,759,037

Personal Products - 0.2%

BaWang International (Group) Holding Ltd.

48,540,000

33,611

Estee Lauder Companies, Inc. Class A

274,500

13,275

Hengan International Group Co. Ltd.

5,115,000

37,871

Mead Johnson Nutrition Co. Class A

10,207

446

NBTY, Inc. (a)

289,500

12,605

 

97,808

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Tobacco - 0.0%

Philip Morris International, Inc.

526,000

$ 25,348

TOTAL CONSUMER STAPLES

5,293,005

ENERGY - 7.5%

Energy Equipment & Services - 1.0%

National Oilwell Varco, Inc.

121,700

5,366

Schlumberger Ltd.

10,085,700

656,478

Seadrill Ltd. (c)

486,200

12,415

 

674,259

Oil, Gas & Consumable Fuels - 6.5%

Anadarko Petroleum Corp.

4,051,500

252,895

Apache Corp.

590,700

60,943

Arena Resources, Inc. (a)

440,000

18,973

BG Group PLC

1,655,629

30,022

Birchcliff Energy Ltd. (a)(d)

9,341,900

84,025

BP PLC sponsored ADR

104,300

6,046

Canadian Natural Resources Ltd.

3,382,806

244,699

Cenovus Energy, Inc.

6,936,648

174,959

Chesapeake Energy Corp.

657,483

17,016

Clean Energy Fuels Corp. (a)

1,351,700

20,830

CNPC (Hong Kong) Ltd.

24,700,000

32,572

Concho Resources, Inc. (a)

2,315,939

103,986

Crescent Point Energy Corp. (c)

1,981,700

74,485

EnCana Corp.

6,936,648

225,203

EOG Resources, Inc.

2,856,557

277,943

EXCO Resources, Inc.

325,000

6,900

Exxon Mobil Corp.

4,538,737

309,496

InterOil Corp. (a)

213,600

16,407

Ivanhoe Energy, Inc. (a)(c)

12,036,400

33,910

Newfield Exploration Co. (a)

120,000

5,788

Niko Resources Ltd.

148,000

13,861

Noble Energy, Inc. (d)

13,433,836

956,758

Northern Oil & Gas, Inc. (a)(d)

3,786,862

44,836

Occidental Petroleum Corp.

6,462,541

525,728

Pacific Rubiales Energy Corp. (a)(c)

430,100

6,325

PetroBakken Energy Ltd. Class A

1,809,967

55,695

Petrobank Energy & Resources Ltd. (a)

833,300

40,616

Petroleo Brasileiro SA - Petrobras sponsored ADR

309,100

14,738

Petroplus Holdings AG

3,252,600

59,778

Range Resources Corp.

3,548,500

176,893

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Reliance Industries Ltd.

1,116,672

$ 26,240

Southwestern Energy Co. (a)

3,678,467

177,302

TransAtlantic Petroleum Ltd. (a)(e)

6,578,651

22,541

Ultra Petroleum Corp. (a)

173,200

8,636

Whiting Petroleum Corp. (a)

183,700

13,125

 

4,140,170

TOTAL ENERGY

4,814,429

FINANCIALS - 12.3%

Capital Markets - 1.2%

AllianceBernstein Holding LP

41,602

1,169

BlackRock, Inc. Class A

107,800

25,031

Charles Schwab Corp.

8,756,975

164,806

Franklin Resources, Inc.

1,208,100

127,273

Goldman Sachs Group, Inc.

1,560,209

263,426

T. Rowe Price Group, Inc.

3,201,400

170,475

 

752,180

Commercial Banks - 4.4%

Banco Bradesco SA (PN) sponsored ADR

725,000

15,856

Banco do Brasil SA

3,604,400

60,590

BOC Hong Kong Holdings Ltd.

13,003,500

29,213

China Citic Bank Corp. Ltd. Class H

23,073,000

19,530

China Merchants Bank Co. Ltd. (H Shares)

2,500,000

6,505

HDFC Bank Ltd. sponsored ADR (c)

251,200

32,676

Industrial & Commercial Bank of China Ltd. (H Shares)

76,242,000

62,788

Itau Unibanco Banco Multiplo SA ADR

3,686,670

84,204

M&T Bank Corp. (c)

94,200

6,301

Metro Bank PLC Class A (a)(d)(h)(i)

1,089,000

13,200

PT Bank Central Asia Tbk

12,500,000

6,432

Standard Chartered PLC (United Kingdom)

13,617,375

346,622

State Bank of India

618,545

30,241

Union Bank of India

60,797

346

Wells Fargo & Co.

76,837,315

2,073,839

 

2,788,343

Consumer Finance - 0.3%

American Express Co.

4,296,933

174,112

Diversified Financial Services - 1.9%

BM&F BOVESPA SA

1,789,700

12,660

Citigroup, Inc.

49,684,000

164,454

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Diversified Financial Services - continued

CME Group, Inc.

76,900

$ 25,835

Gimv NV

100,000

5,230

Hong Kong Exchange and Clearing Ltd.

4,986,400

88,717

IntercontinentalExchange, Inc. (a)

553,500

62,158

JPMorgan Chase & Co.

20,876,029

869,904

MSCI, Inc. Class A (a)

380,800

12,109

 

1,241,067

Insurance - 4.4%

ACE Ltd.

1,426,878

71,915

Admiral Group PLC

4,881,222

93,798

Axis Capital Holdings Ltd.

771,335

21,914

Berkshire Hathaway, Inc. Class A (a)

20,497

2,033,302

China Life Insurance Co. Ltd. ADR (c)

72,700

5,333

Fairfax Financial Holdings Ltd. (sub. vtg.)

261,922

102,211

The Chubb Corp.

6,224,000

306,096

The Travelers Companies, Inc.

3,321,815

165,626

 

2,800,195

Real Estate Investment Trusts - 0.0%

Corporate Office Properties Trust (SBI)

150,000

5,495

Simon Property Group, Inc.

180,520

14,405

Starwood Property Trust, Inc.

870,000

16,434

 

36,334

Real Estate Management & Development - 0.1%

China Overseas Land & Investment Ltd.

4,770,000

9,994

Swire Pacific Ltd. (A Shares)

1,516,000

18,333

Wharf Holdings Ltd.

11,160,000

64,045

 

92,372

TOTAL FINANCIALS

7,884,603

HEALTH CARE - 12.9%

Biotechnology - 3.1%

Actelion Ltd. (Reg.) (a)

1,641,314

87,499

Alexion Pharmaceuticals, Inc. (a)

907,396

44,299

Allos Therapeutics, Inc. (a)(c)

1,793,800

11,785

Amgen, Inc. (a)

538,000

30,435

Celgene Corp. (a)

4,594,904

255,844

Gilead Sciences, Inc. (a)

24,240,194

1,049,116

Human Genome Sciences, Inc. (a)

3,113,852

95,284

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Biotechnology - continued

ImmunoGen, Inc. (a)

1,444,803

$ 11,356

MannKind Corp. (a)(c)(d)

6,093,322

53,378

MannKind Corp. (a)(d)

1,521,689

13,330

MannKind Corp. warrants 8/3/10 (a)(h)

304,338

360

Medivation, Inc. (a)(d)

3,180,235

119,736

Micromet, Inc. (a)

2,554,800

17,015

OREXIGEN Therapeutics, Inc. (a)

574,700

4,276

Regeneron Pharmaceuticals, Inc. (a)

895,131

21,644

Seattle Genetics, Inc. (a)

1,099,376

11,170

Targacept, Inc. (a)(d)

1,516,869

31,733

United Therapeutics Corp. (a)

611,920

32,218

Vertex Pharmaceuticals, Inc. (a)

2,541,900

108,920

Zymogenetics, Inc. (a)(c)

1,000,000

6,390

 

2,005,788

Health Care Equipment & Supplies - 2.3%

Alcon, Inc.

1,576,200

259,048

Baxter International, Inc.

1,833,000

107,560

Becton, Dickinson & Co.

1,763,448

139,066

C. R. Bard, Inc.

1,028,740

80,139

Covidien PLC

8,757,908

419,416

DENTSPLY International, Inc.

3,602,285

126,692

Edwards Lifesciences Corp. (a)

1,961,807

170,383

ev3, Inc. (a)

1,928,500

25,726

ICU Medical, Inc. (a)

190,773

6,952

Inverness Medical Innovations, Inc. (a)

898,300

37,288

Mindray Medical International Ltd. sponsored ADR (c)

168,700

5,722

NuVasive, Inc. (a)(c)

1,705,093

54,529

Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares)

12,424,000

41,404

Thoratec Corp. (a)

502,620

13,531

 

1,487,456

Health Care Providers & Services - 1.5%

Emergency Medical Services Corp. Class A (a)

850,800

46,071

Express Scripts, Inc. (a)

2,517,600

217,647

Henry Schein, Inc. (a)

175,300

9,221

HMS Holdings Corp. (a)

430,400

20,956

Medco Health Solutions, Inc. (a)

10,661,487

681,376

Sinopharm Group Co. Ltd. Class H

2,357,200

8,283

 

983,554

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Health Care Technology - 0.5%

Cerner Corp. (a)

1,946,702

$ 160,486

Quality Systems, Inc. (c)(d)

1,964,985

123,381

 

283,867

Life Sciences Tools & Services - 1.2%

Fluidigm Corp. warrants 9/10/10 (a)

1

0

Illumina, Inc. (a)

374,956

11,492

Life Technologies Corp. (a)

2,603,500

135,981

Mettler-Toledo International, Inc. (a)(d)

3,010,300

316,051

QIAGEN NV (a)

2,732,100

60,980

Techne Corp.

434,080

29,761

Thermo Fisher Scientific, Inc. (a)

170,800

8,145

Waters Corp. (a)

2,949,081

182,725

 

745,135

Pharmaceuticals - 4.3%

Abbott Laboratories

17,249,783

931,316

Allergan, Inc.

952,600

60,023

AstraZeneca PLC (United Kingdom)

6,796,672

319,613

Bristol-Myers Squibb Co. (c)

3,420,732

86,373

Dr. Reddy's Laboratories Ltd. sponsored ADR (c)

772,900

18,712

Forest Laboratories, Inc. (a)

4,849,500

155,717

Johnson & Johnson

9,475,200

610,298

MAP Pharmaceuticals, Inc. (a)

361,874

3,449

Merck & Co., Inc.

657,150

24,012

Novo Nordisk AS Series B

2,461,736

157,231

Optimer Pharmaceuticals, Inc. (a)

659,976

7,445

Salix Pharmaceuticals Ltd. (a)

1,261,900

32,052

Shionogi & Co. Ltd.

640,000

13,883

Teva Pharmaceutical Industries Ltd. sponsored ADR

4,545,700

255,377

Valeant Pharmaceuticals International (a)(c)

2,409,574

76,600

 

2,752,101

TOTAL HEALTH CARE

8,257,901

INDUSTRIALS - 3.1%

Aerospace & Defense - 0.2%

AeroVironment, Inc. (a)

298,879

8,691

DigitalGlobe, Inc.

279,505

6,764

GeoEye, Inc. (a)

509,635

14,209

Precision Castparts Corp.

145,500

16,056

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Aerospace & Defense - continued

Raytheon Co.

105,800

$ 5,451

United Technologies Corp.

1,008,500

70,000

 

121,171

Air Freight & Logistics - 0.7%

C.H. Robinson Worldwide, Inc.

7,673,925

450,690

Airlines - 0.1%

Ryanair Holdings PLC sponsored ADR (a)

401,966

10,781

Southwest Airlines Co.

1,748,000

19,980

 

30,761

Building Products - 0.0%

Armstrong World Industries, Inc. (a)

650,900

25,340

Commercial Services & Supplies - 0.1%

Stericycle, Inc. (a)

1,034,999

57,101

Waste Connections, Inc. (a)

189,000

6,301

 

63,402

Construction & Engineering - 0.2%

Jacobs Engineering Group, Inc. (a)

2,663,172

100,162

Electrical Equipment - 0.4%

A123 Systems, Inc.

234,200

5,255

American Superconductor Corp. (a)(c)

1,811,013

74,070

China High Speed Transmission Equipment Group Co. Ltd.

15,146,000

36,773

Cooper Industries PLC Class A

3,753,841

160,064

Nexxus Lighting, Inc. (a)

574,100

1,952

 

278,114

Industrial Conglomerates - 0.1%

Beijing Enterprises Holdings Ltd.

3,563,500

25,809

Carlisle Companies, Inc.

163,000

5,584

 

31,393

Machinery - 0.9%

China Automation Group Ltd.

29,036,000

23,686

Danaher Corp.

5,018,809

377,414

Duoyuan Global Water, Inc. ADR (c)

459,300

16,438

Oshkosh Co.

320,600

11,872

PACCAR, Inc.

2,668,441

96,784

SmartHeat, Inc. (a)(c)(d)

3,221,689

46,779

 

572,973

Marine - 0.0%

Kuehne & Nagel International AG

65,000

6,309

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Professional Services - 0.1%

Robert Half International, Inc.

1,325,900

$ 35,441

Verisk Analytics, Inc.

1,082,900

32,790

 

68,231

Road & Rail - 0.3%

Canadian National Railway Co.

2,639,100

144,031

CSX Corp.

386,400

18,737

Dollar Thrifty Automotive Group, Inc. (a)

329,932

8,450

Knight Transportation, Inc.

237,600

4,583

Norfolk Southern Corp.

125,000

6,553

 

182,354

Trading Companies & Distributors - 0.0%

Fastenal Co. (c)

285,300

11,880

W.W. Grainger, Inc.

111,300

10,777

 

22,657

TOTAL INDUSTRIALS

1,953,557

INFORMATION TECHNOLOGY - 30.2%

Communications Equipment - 2.2%

Aruba Networks, Inc. (a)

39,500

421

BYD Electronic International Co. Ltd. (a)

83,929,500

68,357

Cisco Systems, Inc. (a)

18,033,200

431,715

F5 Networks, Inc. (a)

1,650,479

87,442

Juniper Networks, Inc. (a)

821,600

21,912

Motorola, Inc.

2,691,900

20,889

QUALCOMM, Inc.

16,130,138

746,180

ZTE Corp. (H Shares)

184,400

1,134

 

1,378,050

Computers & Peripherals - 6.8%

Apple, Inc. (a)

15,383,747

3,243,817

Compellent Technologies, Inc. (a)

896,200

20,326

Dell, Inc. (a)

1,280,500

18,388

EMC Corp. (a)

355,000

6,202

Hewlett-Packard Co.

16,853,649

868,131

NetApp, Inc. (a)

4,469,600

153,710

Western Digital Corp. (a)

838,200

37,007

 

4,347,581

Electronic Equipment & Components - 1.4%

Agilent Technologies, Inc.

737,600

22,917

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Components - continued

Amphenol Corp. Class A (d)

8,831,812

$ 407,853

BYD Co. Ltd. (H Shares) (a)(c)

22,855,000

200,334

Corning, Inc.

894,900

17,281

FLIR Systems, Inc. (a)

5,574,108

182,385

Itron, Inc. (a)

100,000

6,757

Prime View International Co. Ltd. sponsored GDR (a)(e)

471,100

12,402

Samsung SDI Co. Ltd.

50,000

6,368

Tech Data Corp. (a)

134,900

6,294

Wasion Group Holdings Ltd.

26,424,000

27,464

 

890,055

Internet Software & Services - 8.1%

AOL, Inc. (a)

722,098

16,810

Baidu.com, Inc. sponsored ADR (a)

345,400

142,039

Constant Contact, Inc. (a)(c)(d)

1,477,546

23,641

Google, Inc. Class A (a)

6,450,176

3,998,969

LogMeIn, Inc.

531,200

10,597

NetEase.com, Inc. sponsored ADR (a)

4,754,700

178,824

NHN Corp. (a)

96,701

15,922

Open Text Corp. (a)

333,700

13,565

Rackspace Hosting, Inc. (a)

592,200

12,347

SkillSoft PLC sponsored ADR (a)

574,700

6,023

Sohu.com, Inc. (a)(c)

1,523,500

87,266

Tencent Holdings Ltd.

24,832,200

537,043

VistaPrint Ltd. (a)

1,682,312

95,320

WebMD Health Corp. Class A (a)

1,230,204

47,351

 

5,185,717

IT Services - 3.8%

Accenture PLC Class A

10,235,100

424,757

Cognizant Technology Solutions Corp. Class A (a)

2,280,200

103,293

Echo Global Logistics, Inc.

154,300

1,958

Fidelity National Information Services, Inc.

6,053,175

141,886

Fiserv, Inc. (a)

270,000

13,090

Global Payments, Inc.

193,600

10,427

Hewitt Associates, Inc. Class A (a)

2,049,000

86,591

Infosys Technologies Ltd. sponsored ADR

85,490

4,725

MasterCard, Inc. Class A

927,438

237,406

Redecard SA

2,248,300

36,904

The Western Union Co.

725,768

13,681

VeriFone Holdings, Inc. (a)

57,500

942

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

IT Services - continued

Visa, Inc. Class A

15,810,793

$ 1,382,812

Wipro Ltd. sponsored ADR (c)

294,100

6,550

 

2,465,022

Semiconductors & Semiconductor Equipment - 3.1%

Altera Corp.

5,167,500

116,941

Analog Devices, Inc.

200,000

6,316

ARM Holdings PLC sponsored ADR

1,478,000

12,652

ASML Holding NV (NY Shares)

1,516,400

51,694

Avago Technologies Ltd.

1,402,277

25,648

Broadcom Corp. Class A (a)

4,987,100

156,844

Cree, Inc. (a)

2,889,500

162,881

Intel Corp.

3,854,750

78,637

KLA-Tencor Corp.

1,106,400

40,007

Marvell Technology Group Ltd. (a)

17,010,623

352,970

MediaTek, Inc.

302,000

5,268

NVIDIA Corp. (a)

13,919,856

260,023

Samsung Electronics Co. Ltd.

806,665

552,731

Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR

15,171,680

173,564

 

1,996,176

Software - 4.8%

Activision Blizzard, Inc. (a)

20,222,064

224,667

Adobe Systems, Inc. (a)

4,965,508

182,631

ANSYS, Inc. (a)

878,133

38,164

ArcSight, Inc. (a)

465,000

11,895

Ariba, Inc. (a)

551,000

6,899

AsiaInfo Holdings, Inc. (a)(d)

2,703,000

82,360

BMC Software, Inc. (a)

5,434,747

217,933

Check Point Software Technologies Ltd. (a)

5,259,200

178,182

Citrix Systems, Inc. (a)

3,405,300

141,695

CommVault Systems, Inc. (a)

518,781

12,290

Fortinet, Inc.

1,077,960

18,940

Informatica Corp. (a)

2,914,600

75,372

Intuit, Inc. (a)

201,800

6,197

Kingdee International Software Group Co. Ltd.

30,000,000

6,680

Longtop Financial Technologies Ltd. ADR (a)

875,000

32,393

McAfee, Inc. (a)(d)

10,149,935

411,783

Oracle Corp.

29,503,200

724,009

Pegasystems, Inc.

1,022,352

34,760

Perfect World Co. Ltd. sponsored ADR Class B (a)

497,000

19,602

Red Hat, Inc. (a)

2,525,625

78,042

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Software - continued

Rovi Corp. (a)

983,000

$ 31,328

Salesforce.com, Inc. (a)

4,050,382

298,797

Shanda Interactive Entertainment Ltd. sponsored ADR (a)(c)

1,898,574

99,884

SolarWinds, Inc. (c)

1,689,400

38,873

Solera Holdings, Inc.

180,000

6,482

Sourcefire, Inc. (a)

644,275

17,234

SuccessFactors, Inc. (a)

879,444

14,581

Sybase, Inc. (a)

425,000

18,445

TIBCO Software, Inc. (a)

2,912,900

28,051

VMware, Inc. Class A (a)

276,700

11,727

 

3,069,896

TOTAL INFORMATION TECHNOLOGY

19,332,497

MATERIALS - 5.5%

Chemicals - 0.5%

Ecolab, Inc.

4,600,563

205,093

Huabao International Holdings Ltd.

87,275,000

93,844

Lubrizol Corp.

314,000

22,906

Valspar Corp.

211,100

5,729

 

327,572

Containers & Packaging - 0.1%

Owens-Illinois, Inc. (a)

143,300

4,710

Rock-Tenn Co. Class A

692,400

34,904

Temple-Inland, Inc.

1,567,900

33,098

 

72,712

Metals & Mining - 4.9%

Alamos Gold, Inc. (a)

528,700

6,320

AngloGold Ashanti Ltd. sponsored ADR

3,037,300

122,039

B2Gold Corp. (a)

7,685,137

8,851

B2Gold Corp. (a)(e)

5,000,000

5,758

BHP Billiton Ltd. sponsored ADR (c)

773,800

59,258

Eldorado Gold Corp. (a)

21,278,488

302,170

First Quantum Minerals Ltd.

273,500

20,893

Franco-Nevada Corp. (d)

7,617,200

203,725

Franco-Nevada Corp. (d)(e)

695,100

18,591

Franco-Nevada Corp. warrants 6/16/17 (a)(e)

347,550

2,183

Goldcorp, Inc.

14,950,983

588,420

Ivanhoe Mines Ltd. (a)(d)

23,010,600

339,689

Kinross Gold Corp.

21,611,879

398,441

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - continued

Newcrest Mining Ltd.

13,050,620

$ 414,164

Randgold Resources Ltd. sponsored ADR

4,559,746

360,767

Red Back Mining, Inc. (a)(d)

14,077,500

200,983

Red Back Mining, Inc. (a)(d)(e)

592,400

8,458

Vale SA sponsored ADR

1,207,700

35,060

Ventana Gold Corp. (a)

836,400

6,416

 

3,102,186

TOTAL MATERIALS

3,502,470

TELECOMMUNICATION SERVICES - 0.5%

Diversified Telecommunication Services - 0.2%

AboveNet, Inc. (a)

463,857

30,169

Clearwire Corp.:

rights 6/21/10 (a)

1,924,176

770

Class A (a)

1,924,176

13,007

Iliad Group SA

48,853

5,841

Nippon Telegraph & Telephone Corp.

900,000

35,570

Telmex Internacional SAB de CV Series L ADR (c)

793,700

14,088

 

99,445

Wireless Telecommunication Services - 0.3%

American Tower Corp. Class A (a)

1,384,100

59,807

MTN Group Ltd.

1,512,700

24,068

NTT DoCoMo, Inc.

16,763

23,404

Sprint Nextel Corp. (a)

3,269,800

11,967

Vivo Participacoes SA sponsored ADR

2,984,900

92,532

 

211,778

TOTAL TELECOMMUNICATION SERVICES

311,223

UTILITIES - 0.1%

Multi-Utilities - 0.1%

YTL Corp. Bhd

24,945,630

53,184

Water Utilities - 0.0%

YTL Power International Bhd

34,795

23

TOTAL UTILITIES

53,207

TOTAL COMMON STOCKS

(Cost $45,894,804)

61,154,036

Preferred Stocks - 0.1%

Shares

Value (000s)

Convertible Preferred Stocks - 0.1%

FINANCIALS - 0.0%

Diversified Financial Services - 0.0%

Ning, Inc. Series D 8.00% (a)(h)

4,021,166

$ 23,705

HEALTH CARE - 0.0%

Health Care Equipment & Supplies - 0.0%

superDimension Ltd. (a)(h)

698,064

8,028

Life Sciences Tools & Services - 0.0%

Fluidigm Corp. (a)

1,313,082

9,192

TOTAL HEALTH CARE

17,220

INFORMATION TECHNOLOGY - 0.1%

Internet Software & Services - 0.0%

Digg, Inc. Series C, 8.00% (a)(h)

410,013

3,075

Software - 0.1%

Trion World Network, Inc. 8.00% (h)

3,950,196

21,691

TOTAL INFORMATION TECHNOLOGY

24,766

TOTAL CONVERTIBLE PREFERRED STOCKS

65,691

Nonconvertible Preferred Stocks - 0.0%

TELECOMMUNICATION SERVICES - 0.0%

Diversified Telecommunication Services - 0.0%

Slide, Inc. Series D (a)(h)

6,861,467

8,508

TOTAL PREFERRED STOCKS

(Cost $118,998)

74,199

Nonconvertible Bonds - 0.1%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.0%

Automobiles - 0.0%

Ford Motor Co.:

6.375% 2/1/29

$ 3,995

2,936

6.625% 10/1/28

8,510

6,383

7.45% 7/16/31

12,765

11,281

 

20,600

Nonconvertible Bonds - continued

 

Principal Amount (000s)

Value (000s)

FINANCIALS - 0.1%

Diversified Financial Services - 0.1%

Ford Holdings LLC 9.3% 3/1/30

$ 36,585

$ 33,658

TOTAL NONCONVERTIBLE BONDS

(Cost $24,502)

54,258

Floating Rate Loans - 0.1%

 

CONSUMER DISCRETIONARY - 0.1%

Automobiles - 0.1%

Ford Motor Co. term loan 3.2871% 12/15/13 (f)

(Cost $31,102)

35,077

32,534

Money Market Funds - 5.2%

Shares

 

Fidelity Cash Central Fund, 0.16% (g)

2,805,286,254

2,805,286

Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g)

549,248,427

549,248

TOTAL MONEY MARKET FUNDS

(Cost $3,354,534)

3,354,534

TOTAL INVESTMENT PORTFOLIO - 101.1%

(Cost $49,423,940)

64,669,561

NET OTHER ASSETS - (1.1)%

(695,891)

NET ASSETS - 100%

$ 63,973,670

Legend

(a) Non-income producing

(b) Investment made with cash collateral received from securities on loan.

(c) Security or a portion of the security is on loan at period end.

(d) Affiliated company

(e) 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 end of the period, the value of these securities amounted to $78,048,000 or 0.1% of net assets.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $94,029,000 or 0.1% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

Digg, Inc. Series C, 8.00%

9/23/08

$ 4,317

MannKind Corp. warrants 8/3/10

8/3/05

$ 8

Metro Bank PLC Class A

12/8/09

$ 13,307

Ning, Inc. Series D 8.00%

3/19/08

$ 28,751

Slide, Inc. Series D

1/14/08

$ 31,308

superDimension Ltd.

2/27/08 - 5/22/08

$ 14,960

The Weinstein Co. Holdings, LLC Class A-1

10/19/05

$ 41,234

Trion World Network, Inc. 8.00%

8/22/08

$ 21,691

(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 16,568

Fidelity Securities Lending Cash Central Fund

16,646

Total

$ 33,214

Other Affiliated Issuers

An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:

Affiliate
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of period

AeroVironment, Inc.

$ 32,478

$ 49,226

$ 50,048

$ -

$ -

Amphenol Corp. Class A

223,614

37,744

57,211

561

407,853

AsiaInfo Holdings, Inc.

-

47,447

-

-

82,360

Birchcliff Energy Ltd.

19,257

21,373

-

-

84,025

Concur Technologies, Inc.

90,527

5,280

71,612

-

-

Constant Contact, Inc.

17,152

3,513

-

-

23,641

Discovery Communications, Inc.

69,840

131,231

-

-

335,683

Energy Conversion Devices, Inc.

72,211

1,298

48,244

-

-

FLIR Systems, Inc.

297,262

11,195

104,064

-

-

Franco-Nevada Corp.

131,383

52,094

30,242

1,811

222,316

Genoptix, Inc.

35,524

-

28,636

-

-

ICU Medical, Inc.

-

49,404

36,866

-

-

Ivanhoe Mines Ltd.

53,776

26,912

11,180

-

339,689

J. Crew Group, Inc.

76,063

3,333

-

-

282,965

Jacobs Engineering Group, Inc.

298,433

92,559

240,267

-

-

MannKind Corp.

26,331

3,354

5,618

-

66,708

McAfee, Inc.

247,564

138,551

16,368

-

411,783

Medivation, Inc.

24,497

36,591

5,448

-

119,736

Metro Bank PLC Class A

-

13,307

-

-

13,200

Mettler-Toledo International, Inc.

168,581

56,195

37,733

-

316,051

Neutral Tandem, Inc.

-

60,142

59,102

-

-

Noble Energy, Inc.

481,290

210,016

4,751

8,785

956,758

Northern Oil & Gas, Inc.

-

35,448

-

-

44,836

P.F. Chang's China Bistro, Inc.

-

32,855

37,668

-

-

Petroplus Holdings AG

80,124

33,645

47,744

1,837

-

Quality Systems, Inc.

70,825

19,276

5,160

2,293

123,381

Red Back Mining, Inc.

137,858

37,936

66,994

-

209,441

Royal Gold, Inc.

54,954

53,902

89,932

201

-

SmartHeat, Inc.

-

36,658

-

-

46,779

Sohu.com, Inc.

114,317

48,760

109,445

-

-

Strayer Education, Inc.

137,366

71,414

95,774

1,564

-

Affiliate
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of period

Susser Holdings Corp.

$ 19,162

$ -

$ 9,328

$ -

$ -

Targacept, Inc.

-

18,641

-

-

31,733

Tim Hortons, Inc.

304,929

15,553

-

3,716

339,156

TreeHouse Foods, Inc.

85,000

1,457

-

-

122,751

Vivus, Inc.

22,128

2,423

24,978

-

-

Warnaco Group, Inc.

42,314

8,698

70,413

-

-

Total

$ 3,434,760

$ 1,467,431

$ 1,364,826

$ 20,768

$ 4,580,845

Other Information

The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 9,751,144

$ 9,242,957

$ 492,724

$ 15,463

Consumer Staples

5,293,005

5,032,348

260,657

-

Energy

4,814,429

4,781,857

32,572

-

Financials

7,908,308

7,572,278

299,125

36,905

Health Care

8,275,121

7,874,358

383,543

17,220

Industrials

1,953,557

1,867,289

86,268

-

Information Technology

19,357,263

18,491,485

841,012

24,766

Materials

3,502,470

3,408,626

93,844

-

Telecommunication Services

319,731

252,249

58,974

8,508

Utilities

53,207

53,207

-

-

Corporate Bonds

54,258

-

54,258

-

Floating Rate Loans

32,534

-

32,534

-

Money Market Funds

3,354,534

3,354,534

-

-

Total Investments in Securities:

$ 64,669,561

$ 61,931,188

$ 2,635,511

$ 102,862

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

(Amounts in thousands)

 

Investments in Securities:

Beginning Balance

$ 327,739

Total Realized Gain (Loss)

(99,781)

Total Unrealized Gain (Loss)

(31,026)

Cost of Purchases

13,719

Proceeds of Sales

(72,219)

Amortization/Accretion

-

Transfers in/out of Level 3

(35,570)

Ending Balance

$ 102,862

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009

$ (10,111)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America

77.7%

Canada

5.8%

China

2.6%

United Kingdom

2.1%

Ireland

1.5%

Switzerland

1.1%

Netherlands Antilles

1.0%

Others (individually less than 1%)

8.2%

 

100.0%

Income Tax Information

At December 31, 2009, the fund had a capital loss carryforward of approximately $5,732,817,000 of which $2,830,501,000 and $2,902,316,000 will expire on December 31, 2016 and 2017, respectively.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

December 31, 2009

 

 

 

Assets

Investment in securities, at value (including securities loaned of $531,860) - See accompanying schedule:

Unaffiliated issuers (cost $42,650,689)

$ 56,734,182

 

Fidelity Central Funds (cost $3,354,534)

3,354,534

 

Other affiliated issuers (cost $3,418,717)

4,580,845

 

Total Investments (cost $49,423,940)

 

$ 64,669,561

Cash

2,845

Receivable for investments sold

13,129

Receivable for fund shares sold

187,974

Dividends receivable

41,823

Interest receivable

1,902

Distributions receivable from Fidelity Central Funds

1,572

Prepaid expenses

261

Other receivables

2,666

Total assets

64,921,733

 

 

 

Liabilities

Payable for investments purchased

Regular delivery

$ 226,973

Delayed delivery

13,200

Payable for fund shares redeemed

107,284

Accrued management fee

40,013

Other affiliated payables

9,420

Other payables and accrued expenses

1,925

Collateral on securities loaned, at value

549,248

Total liabilities

948,063

 

 

 

Net Assets

$ 63,973,670

Net Assets consist of:

 

Paid in capital

$ 55,286,657

Undistributed net investment income

5,435

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(6,564,153)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

15,245,731

Net Assets

$ 63,973,670

Contrafund:
Net Asset Value
, offering price and redemption price per share ($57,224,798 ÷ 981,908 shares)

$ 58.28

 

 

 

Class K:
Net Asset Value
, offering price and redemption price per share ($6,748,872 ÷ 115,855 shares)

$ 58.25

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Operations

 Amounts in thousands

Year ended December 31, 2009

 

 

 

Investment Income

 

 

Dividends (including $20,768 earned from other affiliated issuers)

 

$ 615,513

Interest

 

3,749

Income from Fidelity Central Funds

 

33,214

Total income

 

652,476

 

 

 

Expenses

Management fee
Basic fee

$ 298,405

Performance adjustment

117,515

Transfer agent fees

109,244

Accounting and security lending fees

2,686

Custodian fees and expenses

2,383

Independent trustees' compensation

370

Appreciation in deferred trustee compensation account

1

Registration fees

507

Audit

291

Legal

269

Miscellaneous

1,176

Total expenses before reductions

532,847

Expense reductions

(3,629)

529,218

Net investment income (loss)

123,258

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(258,814)

Other affiliated issuers

(211,219)

 

Foreign currency transactions

(1,102)

Cap gain distributions from Fidelity Central Funds

46

Total net realized gain (loss)

 

(471,089)

Change in net unrealized appreciation (depreciation) on:

Investment securities

14,688,794

Assets and liabilities in foreign currencies

(57)

Total change in net unrealized appreciation (depreciation)

 

14,688,737

Net gain (loss)

14,217,648

Net increase (decrease) in net assets resulting from operations

$ 14,340,906

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
December 31, 2009

Year ended
December 31, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 123,258

$ 252,242

Net realized gain (loss)

(471,089)

(5,913,986)

Change in net unrealized appreciation (depreciation)

14,688,737

(24,064,404)

Net increase (decrease) in net assets resulting
from operations

14,340,906

(29,726,148)

Distributions to shareholders from net investment income

(132,704)

(228,923)

Distributions to shareholders from net realized gain

(92,816)

(717,940)

Total distributions

(225,520)

(946,863)

Share transactions - net increase (decrease)

1,408,294

(2,020,966)

Total increase (decrease) in net assets

15,523,680

(32,693,977)

 

 

 

Net Assets

Beginning of period

48,449,990

81,143,967

End of period (including undistributed net investment income of $5,435 and undistributed net investment income of $15,798, respectively)

$ 63,973,670

$ 48,449,990

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Contrafund

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 45.26

$ 73.11

$ 65.21

$ 64.76

$ 56.74

Income from Investment Operations

 

 

 

 

 

Net investment income (loss)B

  .11

  .23

  .48

  .41

  .27

Net realized and unrealized gain (loss)

  13.11

  (27.22)

  12.34

  6.92

  8.95

Total from investment operations

  13.22

  (26.99)

  12.82

  7.33

  9.22

Distributions from net investment income

  (.11)

  (.21)

  (.44)

  (.39)

  (.23)

Distributions from net realized gain

  (.09)

  (.65)

  (4.48)

  (6.49)

  (.97)

Total distributions

  (.20)

  (.86)

  (4.92)

  (6.88)

  (1.20)

Net asset value, end of period

$ 58.28

$ 45.26

$ 73.11

$ 65.21

$ 64.76

Total ReturnA

  29.23%

  (37.16) %

  19.78%

  11.54%

  16.23%

Ratios to Average Net AssetsC,E

 

 

 

 

 

Expenses before reductions

  1.02%

  .95%

  .89%

  .90%

  .91%

Expenses net of fee waivers, if any

  1.02%

  .95%

  .89%

  .90%

  .91%

Expenses net of all reductions

  1.01%

  .94%

  .89%

  .89%

  .88%

Net investment income (loss)

  .22%

  .37%

  .68%

  .62%

  .46%

Supplemental Data

 

 

 

 

 

Net assets, end of period
(in millions)

$ 57,225

$ 45,149

$ 81,144

$ 68,576

$ 60,143

Portfolio turnover rateD

  58%

  78%

  56%

  76%

  60%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Calculated based on average shares outstanding during the period.

C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class K

Years ended December 31,
2009
2008G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 45.23

$ 68.59

Income from Investment Operations

 

 

Net investment income (loss)D

  .19

  .22

Net realized and unrealized gain (loss)

  13.11

  (23.30)

Total from investment operations

  13.30

  (23.08)

Distributions from net investment income

  (.20)

  (.28)

Distributions from net realized gain

  (.09)

  -

Total distributions

  (.28)I

  (.28)

Net asset value, end of period

$ 58.25

$ 45.23

Total ReturnB,C

  29.43%

  (33.63)%

Ratios to Average Net AssetsE,H

 

 

Expenses before reductions

  .86%

  .82%A

Expenses net of fee waivers, if any

  .86%

  .82%A

Expenses net of all reductions

  .85%

  .82%A

Net investment income (loss)

  .38%

  .75%A

Supplemental Data

 

 

Net assets, end of period (in millions)

$ 6,749

$ 3,301

Portfolio turnover rateF

  58%

  78%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

I Total distributions of $.281 per share is comprised of distributions from net investment income of $.196 and distributions from net realized gain of $.085 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2009

(Amounts in thousands except ratios)

1. Organization.

Fidelity Contrafund (the Fund) is a fund of Fidelity Contrafund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Contrafund and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. After the commencement of Class K, the Fund began offering conversion privileges between Contrafund and Class K to eligible shareholders of Contrafund. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 18, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Annual Report

3. Significant Accounting Policies - continued

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation - continued

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are

Annual Report

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent 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 invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 15,672,900

Gross unrealized depreciation

(1,032,100)

Net unrealized appreciation (depreciation)

$ 14,640,800

 

 

Tax Cost

$ 50,028,761

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 94,278

Capital loss carryforward

$ (5,732,817)

Net unrealized appreciation (depreciation)

$ 14,640,910

The tax character of distributions paid was as follows:

 

December 31, 2009

December 31, 2008

Ordinary Income

$ 225,520

$ 228,923

Long-term Capital Gains

-

717,940

Total

$ 225,520

$ 946,863

4. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of

Annual Report

4. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued 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 value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $30,015,866 and $28,570,822, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

6. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

the management fee is based on the relative investment performance of the retail class of the Fund, Contrafund, as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .78% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Contrafund. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:

 

Amount

% of
Average
Net Assets

Contrafund

$ 106,283

.22

Class K

2,961

.06

 

$ 109,244

 

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $312 for the period.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $261 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Annual Report

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $16,646.

9. Expense Reductions.

FMR voluntarily agreed to reimburse a portion of Contrafund's operating expenses. During the period, this reimbursement reduced the class' expenses by $20.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,601 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $8.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,

2009

2008A

From net investment income

 

 

Contrafund

$ 110,638

$ 208,629

Class K

22,066

20,294

Total

$ 132,704

$ 228,923

From net realized gain

 

 

Contrafund

$ 83,038

$ 717,940

Class K

9,778

-

Total

$ 92,816

$ 717,940

A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

2009B

2008A

2009B

2008A

Contrafund

 

 

 

 

Shares sold

185,518

153,230

$ 8,936,796

$ 9,211,642

Conversion to Class K

(28,838)

(71,716)

(1,280,867)

(3,520,561)

Reinvestment of distributions

3,386

15,647

188,452

906,942

Shares redeemed

(175,665)

(209,487)

(8,469,845)

(12,197,066)

Net increase (decrease)

(15,599)

(112,326)

$ (625,464)

$ (5,599,043)

Class K

 

 

 

 

Shares sold

33,635

3,604

$ 1,711,298

$ 167,149

Conversion from Contrafund

28,843

71,676

1,280,867

3,520,561

Reinvestment of distributions

566

462

31,844

20,294

Shares redeemed

(20,158)

(2,773)

(990,251)

(129,927)

Net increase (decrease)

42,886

72,969

$ 2,033,758

$ 3,578,077

A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.

B Conversion transactions for Class K and Contrafund are for the period January 1, 2009 through August 31, 2009.

12. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Contrafund:

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 Contrafund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Contrafund'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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 18, 2010

Annual Report

Trustees and Officers

The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-544-8544.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Edward C. Johnson 3d (79)

 

Year of Election or Appointment: 1984

Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007).

James C. Curvey (74)

 

Year of Election or Appointment: 2007

Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation

Dennis J. Dirks (61)

 

Year of Election or Appointment: 2005

Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (56)

 

Year of Election or Appointment: 2008

Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association.

Ned C. Lautenbach (65)

 

Year of Election or Appointment: 2000

Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (65)

 

Year of Election or Appointment: 2008

Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).

Cornelia M. Small (65)

 

Year of Election or Appointment: 2005

Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (70)

 

Year of Election or Appointment: 2001

Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science.

David M. Thomas (60)

 

Year of Election or Appointment: 2008

Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).

Michael E. Wiley (59)

 

Year of Election or Appointment: 2008

Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).

Advisory Board Member and Executive Officers:

Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Peter S. Lynch (65)

 

Year of Election or Appointment: 2003

Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Kenneth B. Robins (40)

 

Year of Election or Appointment: 2008

President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004).

Bruce T. Herring (44)

 

Year of Election or Appointment: 2006

Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds.

Brian B. Hogan (45)

 

Year of Election or Appointment: 2009

Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager.

Scott C. Goebel (41)

 

Year of Election or Appointment: 2008

Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).

William C. Coffey (40)

 

Year of Election or Appointment: 2009

Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments.

Holly C. Laurent (55)

 

Year of Election or Appointment: 2008

Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006).

Christine Reynolds (51)

 

Year of Election or Appointment: 2008

Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007).

Kenneth A. Rathgeber (62)

 

Year of Election or Appointment: 2004

Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc. (2005-present).

Jeffrey S. Christian (48)

 

Year of Election or Appointment: 2009

Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004).

Bryan A. Mehrmann (48)

 

Year of Election or Appointment: 2005

Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004).

Adrien E. Deberghes (42)

 

Year of Election or Appointment: 2008

Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005).

John R. Hebble (51)

 

Year of Election or Appointment: 2009

Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments.

Paul M. Murphy (62)

 

Year of Election or Appointment: 2007

Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007).

Gary W. Ryan (51)

 

Year of Election or Appointment: 2005

Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005).

Annual Report

Distributions (Unaudited)

The Board of Trustees of Contrafund voted to pay shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:

 

Pay Date

Record Date

Dividends

Capital Gains

Contrafund

02/08/10

02/05/10

$.01

$.08

Contrafund designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Contrafund designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Contrafund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Annual Report

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for Fidelity Contrafund (retail class), as well as the fund's relative investment performance for Fidelity Contrafund (retail class) measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Fidelity Contrafund (retail class) of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. (Class K of the fund had less than one year of performance as of December 31, 2008.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of Fidelity Contrafund (retail class) of the fund. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.

Annual Report

Fidelity Contrafund

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The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Contrafund (retail class) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Fidelity Contrafund (retail class) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark.

The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Fidelity Contrafund (retail class) through May 31, 2009 and stated that it exceeded the fund's benchmark.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.

Annual Report

Fidelity Contrafund

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The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for each year represents calculations for performance periods that differ from the periods shown in the performance charts above.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each class ranked below its competitive median for the period.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

Annual Report

In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

Fidelity Research & Analysis Company

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors
(U.K.) Ltd.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc. Boston, MA

Custodian

Brown Brothers Harriman & Co.

Boston, MA

CON-UANN-0210
1.787729.106

fid5141

Fidelity®

Contrafund®-
Class K

Annual Report

December 31, 2009
(2_fidelity_logos) (Registered_Trademark)

Contents

Chairman's Message

<Click Here>

The Chairman's message to shareholders.

Performance

<Click Here>

How the fund has done over time.

Management's Discussion

<Click Here>

The manager's review of fund performance, strategy and outlook.

Shareholder Expense Example

<Click Here>

An example of shareholder expenses.

Investment Changes

<Click Here>

A summary of major shifts in the fund's investments over the past six months.

Investments

<Click Here>

A complete list of the fund's investments with their market values.

Financial Statements

<Click Here>

Statements of assets and liabilities, operations, and changes in net assets,
as well as financial highlights.

Notes

<Click Here>

Notes to the financial statements.

Report of Independent Registered Public Accounting Firm

<Click Here>

 

Trustees and Officers

<Click Here>

 

Distributions

<Click Here>

 

Board Approval of Investment Advisory Contracts and Management Fees

<Click Here>

 

To view a fund's proxy voting guidelines and proxy voting record for the 12-month period ended June 30, visit http://www.fidelity.com/proxyvotingresults or visit the Securities and Exchange Commission's (SEC) web site at http://www.sec.gov. You may also call 1-800-835-5092 to request a free copy of the proxy voting guidelines.

Standard & Poor's, S&P and S&P 500 are registered service marks of The McGraw-Hill Companies, Inc. and have been licensed for use by Fidelity Distributors Corporation.

Other 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 LLC or an affiliated company.

Annual Report

This report and the financial statements contained herein are submitted for the general information of the shareholders of the fund. This report is not authorized for distribution to prospective investors in the fund unless preceded or accompanied by an effective prospectus.

A fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. Forms N-Q are available on the SEC's web site at http://www.sec.gov. A fund's Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information regarding the operation of the SEC's Public Reference Room may be obtained by calling 1-800-SEC-0330. For a complete list of a fund's portfolio holdings, view the most recent holdings listing, semiannual report, or annual report on Fidelity's web site at http://www.fidelity.com or http://www.advisor.fidelity.com, as applicable.

NOT FDIC INSURED · MAY LOSE VALUE · NO BANK GUARANTEE

Neither the fund nor Fidelity Distributors Corporation is a bank.

Annual Report

Chairman's Message

(photo_of_Edward_C_Johnson_3d)

Dear Shareholder:

During the past year, investors saw a turnaround in the global capital markets, as riskier assets - namely stocks and higher-yielding bonds - staged a comeback after a very difficult 2008 and early 2009. Credit conditions improved and economic growth resumed, setting the stage for a broad-based rebound in asset prices. But risks to a sustained recovery remained, including high unemployment, weak consumer spending and potential inflation on the horizon. Financial markets are always unpredictable, of course, but there also are several time-tested investment principles that can help put the odds in your favor.

One of the basic tenets is to invest for the long term. Over time, riding out the markets' inevitable ups and downs has proven much more effective than selling into panic or chasing the hottest trend. Even missing only a few of the markets' best days can significantly diminish investor returns. Patience also affords the benefits of compounding - of earning interest on additional income or reinvested dividends and capital gains. There can be tax advantages and cost benefits to consider as well. While staying the course doesn't eliminate risk, it can considerably lessen the effect of short-term declines.

You can further manage your investing risk through diversification. And today, more than ever, geographic diversification should be taken into account. Studies indicate that asset allocation is the single most important determinant of a portfolio's long-term success. The right mix of stocks, bonds and cash - aligned to your particular risk tolerance and investment objective - is very important. Age-appropriate rebalancing is also an essential aspect of asset allocation. For younger investors, an emphasis on equities - which historically have been the best-performing asset class over time - is encouraged. As investors near their specific goal, such as retirement or sending a child to college, consideration may be given to replacing volatile assets (e.g. common stocks) with more-stable fixed investments (bonds or savings plans).

A third principle - investing regularly - can help lower the average cost of your purchases. Investing a certain amount of money each month or quarter helps ensure you won't pay for all your shares at market highs. This strategy - known as dollar cost averaging - also reduces "emotion" from investing, helping shareholders avoid selling weak performers just prior to an upswing, or chasing a hot performer just before a correction.

We invite you to contact us via the Internet, through our Investor Centers or by phone. It is our privilege to provide you the information you need to make the investments that are right for you.

Sincerely,
/s/Edward C. Johnson 3d

Edward C. Johnson 3d

Annual Report

Performance: The Bottom Line

Average annual total return reflects the change in the value of an investment, assuming reinvestment of the class' dividend income and capital gains (the profits earned upon the sale of securities that have grown in value, if any) and assuming a constant rate of performance each year. The $10,000 table and the fund's returns do not reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. During periods of reimbursement by Fidelity, a fund's total return will be greater than it would be had the reimbursement not occurred. How a fund did yesterday is no guarantee of how it will do tomorrow.

Average Annual Total Returns

Periods ended December 31, 2009

Past 1
year

Past 5
years

Past 10
years

Class KA

29.43%

4.80%

3.20%

A The initial offering of Class K shares took place on May 9, 2008. Returns prior to May 9, 2008 are
those of Contrafund, the original class of the fund.

$10,000 Over 10 Years

Let's say hypothetically that $10,000 was invested in Fidelity® Contrafund® - Class K on December 31, 1999. The chart shows how the value of your investment would have changed, and also shows how the Standard & Poor's 500SM Index (S&P 500®) performed over the same period. The initial offering of Class K took place on May 9, 2008. See above for additional information regarding the performance of Class K.


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Annual Report

Management's Discussion of Fund Performance

Market Recap: The U.S. stock market experienced one of its most abrupt turnarounds ever in 2009. Equities sustained significant declines in the first quarter, as fallout from the global financial crisis continued. Companies initially hurt by the collapse of the housing market, fading consumer confidence, weak corporate earnings and evaporating credit began to show improvement in March after both sharp cost-cutting and unprecedented government intervention began to take hold. As profits improved, investors' appetite for equities returned, despite weak consumer spending and rising unemployment rates. From March 9 through the end of the year, a roughly 65% rise in the Standard & Poor's 500SM Index wiped out the period's earlier losses and netted a gain of 26.46% by December 31, 2009 - the best calendar-year advance for the index since 2003. Within the S&P 500®, nine of the 10 major market segments registered double-digit increases during the period, led by the economically sensitive information technology, materials and consumer discretionary sectors. The technology-heavy Nasdaq Composite® Index rose 45.32% in 2009, the best return among all major U.S. equity indexes. Also during the period, the Dow Jones U.S. Total Stock Market IndexSM - the broadest gauge of U.S. stocks - climbed 28.57%, while the Dow Jones Industrial AverageSM rose 22.68%.

Comments from William Danoff, Portfolio Manager of Fidelity® Contrafund®: It was a relatively good year for the fund, whose Class K shares returned 29.43% for the 12-month period ending December 31, 2009, surpassing the S&P 500 by almost three percentage points. Relative performance was driven by good stock selection and an increased overweighting in technology. During the period, I increased the fund's stake in Internet search leader Google and iPhone maker Apple, the two largest contributors to the fund's return. The fund also benefited from not owning benchmark component General Electric, whose stock price was stymied by problems in its financing unit. Similarly, stock selection and an underweighting in the energy sector, particularly Exxon Mobil, also contributed, as did our foreign holdings, which were bolstered in part by the weaker dollar. Detractors included an out-of-index position in insurance-focused conglomerate Berkshire Hathaway, which saw muted gains during the market's rebound. An overweighting in biopharmaceutical company Gilead Sciences also hurt, affected by overall weakness in the health care sector. Despite these short-term negatives, I felt both companies remained well positioned for the long term and continued to hold them at period end. A relatively high cash position also hurt when the market turned in March.

The views expressed above reflect those of the portfolio manager(s) only through the end of the period as stated on the cover of this report 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.

Annual Report

Shareholder Expense Example

As a shareholder of the Fund, you incur two types of costs: (1) transaction costs, and (2) ongoing costs, including management fees and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in the Fund and to compare these costs with the ongoing costs of investing in other mutual funds.

The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (July 1, 2009 to December 31, 2009).

Actual Expenses

The first line of the accompanying table for each class of the Fund provides information about actual account values and actual expenses. You may use the information in this line, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000.00 (for example, an $8,600 account value divided by $1,000.00 = 8.6), then multiply the result by the number in the first line for a class of the Fund under the heading entitled "Expenses Paid During Period" to estimate the expenses you paid on your account during this period. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Hypothetical Example for Comparison Purposes

The second line of the accompanying table for each class of the Fund provides information about hypothetical account values and hypothetical expenses based on a Class' actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the Class' actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in the Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds. A small balance maintenance fee of $12.00 that is charged once a year may apply for certain accounts with a value of less than $2,000. This fee is not included in the table below. If it was, the estimate of expenses you paid during the period would be higher, and your ending account value lower, by this amount. In addition, the Fund, as a shareholder in the underlying Fidelity Central Funds, will indirectly bear its pro-rata share of the fees and expenses incurred by the underlying Fidelity Central Funds. These fees and expenses are not included in the Fund's annualized expense ratio used to calculate the expense estimate in the table below.

Please note that the expenses shown in the table are meant to highlight your ongoing costs only and do not reflect any transaction costs. Therefore, the second line of the table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds.

Annual Report

 

Annualized Expense Ratio

Beginning
Account Value
July 1, 2009

Ending
Account Value
December 31, 2009

Expenses Paid
During Period*
July 1, 2009
to December 31, 2009

Contrafund

.99%

 

 

 

Actual

 

$ 1,000.00

$ 1,222.90

$ 5.55

HypotheticalA

 

$ 1,000.00

$ 1,020.21

$ 5.04

Class K

.85%

 

 

 

Actual

 

$ 1,000.00

$ 1,223.50

$ 4.76

HypotheticalA

 

$ 1,000.00

$ 1,020.92

$ 4.33

A 5% return per year before expenses

* Expenses are equal to each Class' annualized expense ratio, multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

Annual Report

Investment Changes (Unaudited)

Top Ten Stocks as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Google, Inc. Class A

6.3

5.0

Apple, Inc.

5.1

3.9

Wells Fargo & Co.

3.2

3.4

Berkshire Hathaway, Inc. Class A

3.2

3.6

The Coca-Cola Co.

2.4

2.4

McDonald's Corp.

2.2

2.3

Visa, Inc. Class A

2.2

1.7

The Walt Disney Co.

1.7

1.5

Gilead Sciences, Inc.

1.6

2.1

Noble Energy, Inc.

1.5

1.5

 

29.4

Top Five Market Sectors as of December 31, 2009

 

% of fund's
net assets

% of fund's net assets
6 months ago

Information Technology

30.3

26.2

Consumer Discretionary

15.3

13.2

Health Care

12.9

15.2

Financials

12.4

12.3

Consumer Staples

8.3

9.5

Asset Allocation (% of fund's net assets)

As of December 31, 2009*

As of June 30, 2009**

fid5059

Stocks 95.6%

 

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Stocks 92.7%

 

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Bonds 0.1%

 

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Bonds 0.1%

 

fid5126

Convertible
Securities 0.1%

 

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Convertible
Securities 0.1%

 

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Other Investments 0.1%

 

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Other Investments 0.0%

 

fid5068

Short-Term
Investments and
Net Other Assets 4.1%

 

fid5068

Short-Term
Investments and
Net Other Assets 7.1%

 

* Foreign investments

22.3%

 

** Foreign investments

19.4%

 

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Annual Report

Investments December 31, 2009

Showing Percentage of Net Assets

Common Stocks - 95.6%

Shares

Value (000s)

CONSUMER DISCRETIONARY - 15.2%

Auto Components - 0.0%

Autoliv, Inc.

150,000

$ 6,504

Gentex Corp.

336,100

5,999

Johnson Controls, Inc.

385,800

10,509

 

23,012

Automobiles - 0.5%

Dongfeng Motor Group Co. Ltd. (H Shares)

31,332,000

44,739

Geely Automobile Holdings Ltd. (c)

261,045,000

142,471

Honda Motor Co. Ltd. sponsored ADR

1,704,244

57,774

Toyota Motor Corp.

1,741,600

73,463

 

318,447

Diversified Consumer Services - 0.2%

Brinks Home Security Holdings, Inc. (a)

190,100

6,205

MegaStudy Co. Ltd.

30,000

6,149

Strayer Education, Inc. (c)

490,338

104,192

 

116,546

Hotels, Restaurants & Leisure - 3.8%

7 Days Group Holdings Ltd. ADR

437,900

5,465

Buffalo Wild Wings, Inc. (a)

89,919

3,621

Cafe de Coral Holdings Ltd.

10,176,000

23,240

Chipotle Mexican Grill, Inc. Class A (a)

2,520,212

222,182

Ctrip.com International Ltd. sponsored ADR (a)

79,000

5,677

Home Inns & Hotels Management, Inc. sponsored ADR (a)

847,000

29,941

Las Vegas Sands Corp. (a)

678,000

10,129

Little Sheep Group Ltd.

18,723,000

10,366

Marriott International, Inc. Class A

1,090,900

29,727

McDonald's Corp.

22,200,670

1,386,210

Panera Bread Co. Class A (a)

463,800

31,061

Sands China Ltd.

20,000,000

24,133

Sodexo SA

779,544

44,491

Starbucks Corp. (a)

8,756,900

201,934

Starwood Hotels & Resorts Worldwide, Inc.

129,500

4,736

Tim Hortons, Inc. (d)

11,116,232

339,156

WMS Industries, Inc. (a)

1,312,128

52,485

 

2,424,554

Household Durables - 0.1%

Gafisa SA sponsored ADR (c)

922,700

29,859

iRobot Corp. (a)

477,616

8,406

 

38,265

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Internet & Catalog Retail - 1.9%

Amazon.com, Inc. (a)

6,452,108

$ 867,938

Expedia, Inc. (a)

1,548,500

39,812

Liberty Media Corp. Interactive Series A (a)

5,534,755

59,997

NetFlix, Inc. (a)

665,439

36,692

Priceline.com, Inc. (a)

878,200

191,887

 

1,196,326

Media - 3.8%

CKX, Inc. (a)

1,781,993

9,391

Comcast Corp. Class A

2,351,200

39,641

DIRECTV (a)

13,897,109

463,469

Discovery Communications, Inc. (a)(d)

10,945,005

335,683

DreamWorks Animation SKG, Inc. Class A (a)

1,173,818

46,894

Jupiter Telecommunications Co.

9,394

9,300

Liberty Media Corp.:

Capital Series A (a)

266,400

6,362

Starz Series A (a)

887,411

40,954

Marvel Entertainment, Inc. (a)

1,522,697

82,347

Naspers Ltd. Class N

1,919,700

77,721

Net Servicos de Comunicacao SA sponsored ADR

450,000

6,089

Pearson PLC

611,200

8,801

Scripps Networks Interactive, Inc. Class A

4,554,952

189,031

The Walt Disney Co.

34,258,406

1,104,834

The Weinstein Co. Holdings, LLC Class A-1 (a)(h)

41,234

15,463

 

2,435,980

Multiline Retail - 0.6%

99 Cents Only Stores (a)

1,116,100

14,587

Big Lots, Inc. (a)

433,100

12,551

Dollar General Corp.

606,100

13,595

Dollar Tree, Inc. (a)

3,910,500

188,877

Dollarama, Inc.

896,150

19,063

Dollarama, Inc. (a)(e)

381,500

8,115

Golden Eagle Retail Group Ltd. (H Shares)

4,500,000

9,127

Mothercare PLC

472,679

5,210

Next PLC

1,323,300

44,548

Parkson Retail Group Ltd.

25,208,500

44,358

PCD Stores Group Ltd.

38,178,000

14,658

 

374,689

Specialty Retail - 2.6%

Advance Auto Parts, Inc.

1,811,900

73,346

Aeropostale, Inc. (a)

1,632,100

55,573

Common Stocks - continued

Shares

Value (000s)

CONSUMER DISCRETIONARY - continued

Specialty Retail - continued

Bed Bath & Beyond, Inc. (a)

857,100

$ 33,110

Belle International Holdings Ltd.

23,500,000

27,223

Best Buy Co., Inc.

1,861,300

73,447

Chico's FAS, Inc. (a)

413,200

5,805

Gymboree Corp. (a)

579,900

25,220

Hengdeli Holdings Ltd.

15,816,000

5,972

Inditex SA

1,069,880

66,460

J. Crew Group, Inc. (a)(c)(d)

6,324,653

282,965

Lumber Liquidators, Inc. (a)(c)

1,066,248

28,575

O'Reilly Automotive, Inc. (a)

681,400

25,975

RadioShack Corp.

1,664,300

32,454

Ross Stores, Inc.

3,067,333

131,006

Rue21, Inc.

108,700

3,053

Staples, Inc.

2,543,000

62,532

TJX Companies, Inc.

17,665,462

645,673

Urban Outfitters, Inc. (a)

3,359,100

117,535

Vitamin Shoppe, Inc.

220,200

4,897

 

1,700,821

Textiles, Apparel & Luxury Goods - 1.7%

Burberry Group PLC

2,239,800

21,683

China Dongxiang Group Co. Ltd.

26,855,000

20,720

Coach, Inc.

2,947,351

107,667

Li Ning Co. Ltd.

10,295,500

39,037

NIKE, Inc. Class B

12,738,600

841,639

Phillips-Van Heusen Corp.

135,000

5,492

Polo Ralph Lauren Corp. Class A

1,016,900

82,349

Shenzhou International Group Holdings Ltd.

3,008,000

3,917

 

1,122,504

TOTAL CONSUMER DISCRETIONARY

9,751,144

CONSUMER STAPLES - 8.3%

Beverages - 2.7%

Anheuser-Busch InBev SA NV

1,056,648

55,057

C&C Group PLC

1,901,079

8,192

Coca-Cola FEMSA SAB de CV sponsored ADR

187,300

12,309

Companhia de Bebidas das Americas (AmBev) (PN) sponsored ADR

170,000

17,185

Diageo PLC sponsored ADR

427,867

29,698

Dr Pepper Snapple Group, Inc.

224,300

6,348

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Beverages - continued

Fomento Economico Mexicano SAB de CV sponsored ADR

275,000

$ 13,167

The Coca-Cola Co.

26,733,591

1,523,815

Tsingtao Brewery Co. Ltd. (H Shares)

10,990,000

60,788

 

1,726,559

Food & Staples Retailing - 0.8%

Costco Wholesale Corp.

2,162,823

127,974

Susser Holdings Corp. (a)

505,262

4,340

Tesco PLC

41,279,876

285,538

Wal-Mart Stores, Inc.

1,045,400

55,877

Wm Morrison Supermarkets PLC

6,649,801

29,812

 

503,541

Food Products - 1.8%

Ausnutria Dairy Hunan Co. Ltd. Class H

10,656,000

8,740

Brasil Foods SA sponsored ADR (c)

235,000

12,307

Cadbury PLC

5,942,500

76,592

Campbell Soup Co.

351,200

11,871

Danone

943,247

57,838

General Mills, Inc.

3,706,700

262,471

Kellogg Co.

3,128,134

166,417

Kraft Foods, Inc. Class A

87,700

2,384

Nestle SA (Reg.)

5,259,404

254,983

Ralcorp Holdings, Inc. (a)

1,418,700

84,711

Tingyi (Cayman Island) Holding Corp.

18,320,000

45,331

TreeHouse Foods, Inc. (a)(d)

3,158,796

122,751

Want Want China Holdings Ltd.

106,423,000

74,316

 

1,180,712

Household Products - 2.8%

Colgate-Palmolive Co.

10,436,811

857,384

Hypermarcas SA (a)

1,422,800

32,121

Mcbride PLC

1,845,500

6,311

Procter & Gamble Co.

14,237,519

863,221

 

1,759,037

Personal Products - 0.2%

BaWang International (Group) Holding Ltd.

48,540,000

33,611

Estee Lauder Companies, Inc. Class A

274,500

13,275

Hengan International Group Co. Ltd.

5,115,000

37,871

Mead Johnson Nutrition Co. Class A

10,207

446

NBTY, Inc. (a)

289,500

12,605

 

97,808

Common Stocks - continued

Shares

Value (000s)

CONSUMER STAPLES - continued

Tobacco - 0.0%

Philip Morris International, Inc.

526,000

$ 25,348

TOTAL CONSUMER STAPLES

5,293,005

ENERGY - 7.5%

Energy Equipment & Services - 1.0%

National Oilwell Varco, Inc.

121,700

5,366

Schlumberger Ltd.

10,085,700

656,478

Seadrill Ltd. (c)

486,200

12,415

 

674,259

Oil, Gas & Consumable Fuels - 6.5%

Anadarko Petroleum Corp.

4,051,500

252,895

Apache Corp.

590,700

60,943

Arena Resources, Inc. (a)

440,000

18,973

BG Group PLC

1,655,629

30,022

Birchcliff Energy Ltd. (a)(d)

9,341,900

84,025

BP PLC sponsored ADR

104,300

6,046

Canadian Natural Resources Ltd.

3,382,806

244,699

Cenovus Energy, Inc.

6,936,648

174,959

Chesapeake Energy Corp.

657,483

17,016

Clean Energy Fuels Corp. (a)

1,351,700

20,830

CNPC (Hong Kong) Ltd.

24,700,000

32,572

Concho Resources, Inc. (a)

2,315,939

103,986

Crescent Point Energy Corp. (c)

1,981,700

74,485

EnCana Corp.

6,936,648

225,203

EOG Resources, Inc.

2,856,557

277,943

EXCO Resources, Inc.

325,000

6,900

Exxon Mobil Corp.

4,538,737

309,496

InterOil Corp. (a)

213,600

16,407

Ivanhoe Energy, Inc. (a)(c)

12,036,400

33,910

Newfield Exploration Co. (a)

120,000

5,788

Niko Resources Ltd.

148,000

13,861

Noble Energy, Inc. (d)

13,433,836

956,758

Northern Oil & Gas, Inc. (a)(d)

3,786,862

44,836

Occidental Petroleum Corp.

6,462,541

525,728

Pacific Rubiales Energy Corp. (a)(c)

430,100

6,325

PetroBakken Energy Ltd. Class A

1,809,967

55,695

Petrobank Energy & Resources Ltd. (a)

833,300

40,616

Petroleo Brasileiro SA - Petrobras sponsored ADR

309,100

14,738

Petroplus Holdings AG

3,252,600

59,778

Range Resources Corp.

3,548,500

176,893

Common Stocks - continued

Shares

Value (000s)

ENERGY - continued

Oil, Gas & Consumable Fuels - continued

Reliance Industries Ltd.

1,116,672

$ 26,240

Southwestern Energy Co. (a)

3,678,467

177,302

TransAtlantic Petroleum Ltd. (a)(e)

6,578,651

22,541

Ultra Petroleum Corp. (a)

173,200

8,636

Whiting Petroleum Corp. (a)

183,700

13,125

 

4,140,170

TOTAL ENERGY

4,814,429

FINANCIALS - 12.3%

Capital Markets - 1.2%

AllianceBernstein Holding LP

41,602

1,169

BlackRock, Inc. Class A

107,800

25,031

Charles Schwab Corp.

8,756,975

164,806

Franklin Resources, Inc.

1,208,100

127,273

Goldman Sachs Group, Inc.

1,560,209

263,426

T. Rowe Price Group, Inc.

3,201,400

170,475

 

752,180

Commercial Banks - 4.4%

Banco Bradesco SA (PN) sponsored ADR

725,000

15,856

Banco do Brasil SA

3,604,400

60,590

BOC Hong Kong Holdings Ltd.

13,003,500

29,213

China Citic Bank Corp. Ltd. Class H

23,073,000

19,530

China Merchants Bank Co. Ltd. (H Shares)

2,500,000

6,505

HDFC Bank Ltd. sponsored ADR (c)

251,200

32,676

Industrial & Commercial Bank of China Ltd. (H Shares)

76,242,000

62,788

Itau Unibanco Banco Multiplo SA ADR

3,686,670

84,204

M&T Bank Corp. (c)

94,200

6,301

Metro Bank PLC Class A (a)(d)(h)(i)

1,089,000

13,200

PT Bank Central Asia Tbk

12,500,000

6,432

Standard Chartered PLC (United Kingdom)

13,617,375

346,622

State Bank of India

618,545

30,241

Union Bank of India

60,797

346

Wells Fargo & Co.

76,837,315

2,073,839

 

2,788,343

Consumer Finance - 0.3%

American Express Co.

4,296,933

174,112

Diversified Financial Services - 1.9%

BM&F BOVESPA SA

1,789,700

12,660

Citigroup, Inc.

49,684,000

164,454

Common Stocks - continued

Shares

Value (000s)

FINANCIALS - continued

Diversified Financial Services - continued

CME Group, Inc.

76,900

$ 25,835

Gimv NV

100,000

5,230

Hong Kong Exchange and Clearing Ltd.

4,986,400

88,717

IntercontinentalExchange, Inc. (a)

553,500

62,158

JPMorgan Chase & Co.

20,876,029

869,904

MSCI, Inc. Class A (a)

380,800

12,109

 

1,241,067

Insurance - 4.4%

ACE Ltd.

1,426,878

71,915

Admiral Group PLC

4,881,222

93,798

Axis Capital Holdings Ltd.

771,335

21,914

Berkshire Hathaway, Inc. Class A (a)

20,497

2,033,302

China Life Insurance Co. Ltd. ADR (c)

72,700

5,333

Fairfax Financial Holdings Ltd. (sub. vtg.)

261,922

102,211

The Chubb Corp.

6,224,000

306,096

The Travelers Companies, Inc.

3,321,815

165,626

 

2,800,195

Real Estate Investment Trusts - 0.0%

Corporate Office Properties Trust (SBI)

150,000

5,495

Simon Property Group, Inc.

180,520

14,405

Starwood Property Trust, Inc.

870,000

16,434

 

36,334

Real Estate Management & Development - 0.1%

China Overseas Land & Investment Ltd.

4,770,000

9,994

Swire Pacific Ltd. (A Shares)

1,516,000

18,333

Wharf Holdings Ltd.

11,160,000

64,045

 

92,372

TOTAL FINANCIALS

7,884,603

HEALTH CARE - 12.9%

Biotechnology - 3.1%

Actelion Ltd. (Reg.) (a)

1,641,314

87,499

Alexion Pharmaceuticals, Inc. (a)

907,396

44,299

Allos Therapeutics, Inc. (a)(c)

1,793,800

11,785

Amgen, Inc. (a)

538,000

30,435

Celgene Corp. (a)

4,594,904

255,844

Gilead Sciences, Inc. (a)

24,240,194

1,049,116

Human Genome Sciences, Inc. (a)

3,113,852

95,284

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Biotechnology - continued

ImmunoGen, Inc. (a)

1,444,803

$ 11,356

MannKind Corp. (a)(c)(d)

6,093,322

53,378

MannKind Corp. (a)(d)

1,521,689

13,330

MannKind Corp. warrants 8/3/10 (a)(h)

304,338

360

Medivation, Inc. (a)(d)

3,180,235

119,736

Micromet, Inc. (a)

2,554,800

17,015

OREXIGEN Therapeutics, Inc. (a)

574,700

4,276

Regeneron Pharmaceuticals, Inc. (a)

895,131

21,644

Seattle Genetics, Inc. (a)

1,099,376

11,170

Targacept, Inc. (a)(d)

1,516,869

31,733

United Therapeutics Corp. (a)

611,920

32,218

Vertex Pharmaceuticals, Inc. (a)

2,541,900

108,920

Zymogenetics, Inc. (a)(c)

1,000,000

6,390

 

2,005,788

Health Care Equipment & Supplies - 2.3%

Alcon, Inc.

1,576,200

259,048

Baxter International, Inc.

1,833,000

107,560

Becton, Dickinson & Co.

1,763,448

139,066

C. R. Bard, Inc.

1,028,740

80,139

Covidien PLC

8,757,908

419,416

DENTSPLY International, Inc.

3,602,285

126,692

Edwards Lifesciences Corp. (a)

1,961,807

170,383

ev3, Inc. (a)

1,928,500

25,726

ICU Medical, Inc. (a)

190,773

6,952

Inverness Medical Innovations, Inc. (a)

898,300

37,288

Mindray Medical International Ltd. sponsored ADR (c)

168,700

5,722

NuVasive, Inc. (a)(c)

1,705,093

54,529

Shandong Weigao Group Medical Polymer Co. Ltd. (H Shares)

12,424,000

41,404

Thoratec Corp. (a)

502,620

13,531

 

1,487,456

Health Care Providers & Services - 1.5%

Emergency Medical Services Corp. Class A (a)

850,800

46,071

Express Scripts, Inc. (a)

2,517,600

217,647

Henry Schein, Inc. (a)

175,300

9,221

HMS Holdings Corp. (a)

430,400

20,956

Medco Health Solutions, Inc. (a)

10,661,487

681,376

Sinopharm Group Co. Ltd. Class H

2,357,200

8,283

 

983,554

Common Stocks - continued

Shares

Value (000s)

HEALTH CARE - continued

Health Care Technology - 0.5%

Cerner Corp. (a)

1,946,702

$ 160,486

Quality Systems, Inc. (c)(d)

1,964,985

123,381

 

283,867

Life Sciences Tools & Services - 1.2%

Fluidigm Corp. warrants 9/10/10 (a)

1

0

Illumina, Inc. (a)

374,956

11,492

Life Technologies Corp. (a)

2,603,500

135,981

Mettler-Toledo International, Inc. (a)(d)

3,010,300

316,051

QIAGEN NV (a)

2,732,100

60,980

Techne Corp.

434,080

29,761

Thermo Fisher Scientific, Inc. (a)

170,800

8,145

Waters Corp. (a)

2,949,081

182,725

 

745,135

Pharmaceuticals - 4.3%

Abbott Laboratories

17,249,783

931,316

Allergan, Inc.

952,600

60,023

AstraZeneca PLC (United Kingdom)

6,796,672

319,613

Bristol-Myers Squibb Co. (c)

3,420,732

86,373

Dr. Reddy's Laboratories Ltd. sponsored ADR (c)

772,900

18,712

Forest Laboratories, Inc. (a)

4,849,500

155,717

Johnson & Johnson

9,475,200

610,298

MAP Pharmaceuticals, Inc. (a)

361,874

3,449

Merck & Co., Inc.

657,150

24,012

Novo Nordisk AS Series B

2,461,736

157,231

Optimer Pharmaceuticals, Inc. (a)

659,976

7,445

Salix Pharmaceuticals Ltd. (a)

1,261,900

32,052

Shionogi & Co. Ltd.

640,000

13,883

Teva Pharmaceutical Industries Ltd. sponsored ADR

4,545,700

255,377

Valeant Pharmaceuticals International (a)(c)

2,409,574

76,600

 

2,752,101

TOTAL HEALTH CARE

8,257,901

INDUSTRIALS - 3.1%

Aerospace & Defense - 0.2%

AeroVironment, Inc. (a)

298,879

8,691

DigitalGlobe, Inc.

279,505

6,764

GeoEye, Inc. (a)

509,635

14,209

Precision Castparts Corp.

145,500

16,056

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Aerospace & Defense - continued

Raytheon Co.

105,800

$ 5,451

United Technologies Corp.

1,008,500

70,000

 

121,171

Air Freight & Logistics - 0.7%

C.H. Robinson Worldwide, Inc.

7,673,925

450,690

Airlines - 0.1%

Ryanair Holdings PLC sponsored ADR (a)

401,966

10,781

Southwest Airlines Co.

1,748,000

19,980

 

30,761

Building Products - 0.0%

Armstrong World Industries, Inc. (a)

650,900

25,340

Commercial Services & Supplies - 0.1%

Stericycle, Inc. (a)

1,034,999

57,101

Waste Connections, Inc. (a)

189,000

6,301

 

63,402

Construction & Engineering - 0.2%

Jacobs Engineering Group, Inc. (a)

2,663,172

100,162

Electrical Equipment - 0.4%

A123 Systems, Inc.

234,200

5,255

American Superconductor Corp. (a)(c)

1,811,013

74,070

China High Speed Transmission Equipment Group Co. Ltd.

15,146,000

36,773

Cooper Industries PLC Class A

3,753,841

160,064

Nexxus Lighting, Inc. (a)

574,100

1,952

 

278,114

Industrial Conglomerates - 0.1%

Beijing Enterprises Holdings Ltd.

3,563,500

25,809

Carlisle Companies, Inc.

163,000

5,584

 

31,393

Machinery - 0.9%

China Automation Group Ltd.

29,036,000

23,686

Danaher Corp.

5,018,809

377,414

Duoyuan Global Water, Inc. ADR (c)

459,300

16,438

Oshkosh Co.

320,600

11,872

PACCAR, Inc.

2,668,441

96,784

SmartHeat, Inc. (a)(c)(d)

3,221,689

46,779

 

572,973

Marine - 0.0%

Kuehne & Nagel International AG

65,000

6,309

Common Stocks - continued

Shares

Value (000s)

INDUSTRIALS - continued

Professional Services - 0.1%

Robert Half International, Inc.

1,325,900

$ 35,441

Verisk Analytics, Inc.

1,082,900

32,790

 

68,231

Road & Rail - 0.3%

Canadian National Railway Co.

2,639,100

144,031

CSX Corp.

386,400

18,737

Dollar Thrifty Automotive Group, Inc. (a)

329,932

8,450

Knight Transportation, Inc.

237,600

4,583

Norfolk Southern Corp.

125,000

6,553

 

182,354

Trading Companies & Distributors - 0.0%

Fastenal Co. (c)

285,300

11,880

W.W. Grainger, Inc.

111,300

10,777

 

22,657

TOTAL INDUSTRIALS

1,953,557

INFORMATION TECHNOLOGY - 30.2%

Communications Equipment - 2.2%

Aruba Networks, Inc. (a)

39,500

421

BYD Electronic International Co. Ltd. (a)

83,929,500

68,357

Cisco Systems, Inc. (a)

18,033,200

431,715

F5 Networks, Inc. (a)

1,650,479

87,442

Juniper Networks, Inc. (a)

821,600

21,912

Motorola, Inc.

2,691,900

20,889

QUALCOMM, Inc.

16,130,138

746,180

ZTE Corp. (H Shares)

184,400

1,134

 

1,378,050

Computers & Peripherals - 6.8%

Apple, Inc. (a)

15,383,747

3,243,817

Compellent Technologies, Inc. (a)

896,200

20,326

Dell, Inc. (a)

1,280,500

18,388

EMC Corp. (a)

355,000

6,202

Hewlett-Packard Co.

16,853,649

868,131

NetApp, Inc. (a)

4,469,600

153,710

Western Digital Corp. (a)

838,200

37,007

 

4,347,581

Electronic Equipment & Components - 1.4%

Agilent Technologies, Inc.

737,600

22,917

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Electronic Equipment & Components - continued

Amphenol Corp. Class A (d)

8,831,812

$ 407,853

BYD Co. Ltd. (H Shares) (a)(c)

22,855,000

200,334

Corning, Inc.

894,900

17,281

FLIR Systems, Inc. (a)

5,574,108

182,385

Itron, Inc. (a)

100,000

6,757

Prime View International Co. Ltd. sponsored GDR (a)(e)

471,100

12,402

Samsung SDI Co. Ltd.

50,000

6,368

Tech Data Corp. (a)

134,900

6,294

Wasion Group Holdings Ltd.

26,424,000

27,464

 

890,055

Internet Software & Services - 8.1%

AOL, Inc. (a)

722,098

16,810

Baidu.com, Inc. sponsored ADR (a)

345,400

142,039

Constant Contact, Inc. (a)(c)(d)

1,477,546

23,641

Google, Inc. Class A (a)

6,450,176

3,998,969

LogMeIn, Inc.

531,200

10,597

NetEase.com, Inc. sponsored ADR (a)

4,754,700

178,824

NHN Corp. (a)

96,701

15,922

Open Text Corp. (a)

333,700

13,565

Rackspace Hosting, Inc. (a)

592,200

12,347

SkillSoft PLC sponsored ADR (a)

574,700

6,023

Sohu.com, Inc. (a)(c)

1,523,500

87,266

Tencent Holdings Ltd.

24,832,200

537,043

VistaPrint Ltd. (a)

1,682,312

95,320

WebMD Health Corp. Class A (a)

1,230,204

47,351

 

5,185,717

IT Services - 3.8%

Accenture PLC Class A

10,235,100

424,757

Cognizant Technology Solutions Corp. Class A (a)

2,280,200

103,293

Echo Global Logistics, Inc.

154,300

1,958

Fidelity National Information Services, Inc.

6,053,175

141,886

Fiserv, Inc. (a)

270,000

13,090

Global Payments, Inc.

193,600

10,427

Hewitt Associates, Inc. Class A (a)

2,049,000

86,591

Infosys Technologies Ltd. sponsored ADR

85,490

4,725

MasterCard, Inc. Class A

927,438

237,406

Redecard SA

2,248,300

36,904

The Western Union Co.

725,768

13,681

VeriFone Holdings, Inc. (a)

57,500

942

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

IT Services - continued

Visa, Inc. Class A

15,810,793

$ 1,382,812

Wipro Ltd. sponsored ADR (c)

294,100

6,550

 

2,465,022

Semiconductors & Semiconductor Equipment - 3.1%

Altera Corp.

5,167,500

116,941

Analog Devices, Inc.

200,000

6,316

ARM Holdings PLC sponsored ADR

1,478,000

12,652

ASML Holding NV (NY Shares)

1,516,400

51,694

Avago Technologies Ltd.

1,402,277

25,648

Broadcom Corp. Class A (a)

4,987,100

156,844

Cree, Inc. (a)

2,889,500

162,881

Intel Corp.

3,854,750

78,637

KLA-Tencor Corp.

1,106,400

40,007

Marvell Technology Group Ltd. (a)

17,010,623

352,970

MediaTek, Inc.

302,000

5,268

NVIDIA Corp. (a)

13,919,856

260,023

Samsung Electronics Co. Ltd.

806,665

552,731

Taiwan Semiconductor Manufacturing Co. Ltd. sponsored ADR

15,171,680

173,564

 

1,996,176

Software - 4.8%

Activision Blizzard, Inc. (a)

20,222,064

224,667

Adobe Systems, Inc. (a)

4,965,508

182,631

ANSYS, Inc. (a)

878,133

38,164

ArcSight, Inc. (a)

465,000

11,895

Ariba, Inc. (a)

551,000

6,899

AsiaInfo Holdings, Inc. (a)(d)

2,703,000

82,360

BMC Software, Inc. (a)

5,434,747

217,933

Check Point Software Technologies Ltd. (a)

5,259,200

178,182

Citrix Systems, Inc. (a)

3,405,300

141,695

CommVault Systems, Inc. (a)

518,781

12,290

Fortinet, Inc.

1,077,960

18,940

Informatica Corp. (a)

2,914,600

75,372

Intuit, Inc. (a)

201,800

6,197

Kingdee International Software Group Co. Ltd.

30,000,000

6,680

Longtop Financial Technologies Ltd. ADR (a)

875,000

32,393

McAfee, Inc. (a)(d)

10,149,935

411,783

Oracle Corp.

29,503,200

724,009

Pegasystems, Inc.

1,022,352

34,760

Perfect World Co. Ltd. sponsored ADR Class B (a)

497,000

19,602

Red Hat, Inc. (a)

2,525,625

78,042

Common Stocks - continued

Shares

Value (000s)

INFORMATION TECHNOLOGY - continued

Software - continued

Rovi Corp. (a)

983,000

$ 31,328

Salesforce.com, Inc. (a)

4,050,382

298,797

Shanda Interactive Entertainment Ltd. sponsored ADR (a)(c)

1,898,574

99,884

SolarWinds, Inc. (c)

1,689,400

38,873

Solera Holdings, Inc.

180,000

6,482

Sourcefire, Inc. (a)

644,275

17,234

SuccessFactors, Inc. (a)

879,444

14,581

Sybase, Inc. (a)

425,000

18,445

TIBCO Software, Inc. (a)

2,912,900

28,051

VMware, Inc. Class A (a)

276,700

11,727

 

3,069,896

TOTAL INFORMATION TECHNOLOGY

19,332,497

MATERIALS - 5.5%

Chemicals - 0.5%

Ecolab, Inc.

4,600,563

205,093

Huabao International Holdings Ltd.

87,275,000

93,844

Lubrizol Corp.

314,000

22,906

Valspar Corp.

211,100

5,729

 

327,572

Containers & Packaging - 0.1%

Owens-Illinois, Inc. (a)

143,300

4,710

Rock-Tenn Co. Class A

692,400

34,904

Temple-Inland, Inc.

1,567,900

33,098

 

72,712

Metals & Mining - 4.9%

Alamos Gold, Inc. (a)

528,700

6,320

AngloGold Ashanti Ltd. sponsored ADR

3,037,300

122,039

B2Gold Corp. (a)

7,685,137

8,851

B2Gold Corp. (a)(e)

5,000,000

5,758

BHP Billiton Ltd. sponsored ADR (c)

773,800

59,258

Eldorado Gold Corp. (a)

21,278,488

302,170

First Quantum Minerals Ltd.

273,500

20,893

Franco-Nevada Corp. (d)

7,617,200

203,725

Franco-Nevada Corp. (d)(e)

695,100

18,591

Franco-Nevada Corp. warrants 6/16/17 (a)(e)

347,550

2,183

Goldcorp, Inc.

14,950,983

588,420

Ivanhoe Mines Ltd. (a)(d)

23,010,600

339,689

Kinross Gold Corp.

21,611,879

398,441

Common Stocks - continued

Shares

Value (000s)

MATERIALS - continued

Metals & Mining - continued

Newcrest Mining Ltd.

13,050,620

$ 414,164

Randgold Resources Ltd. sponsored ADR

4,559,746

360,767

Red Back Mining, Inc. (a)(d)

14,077,500

200,983

Red Back Mining, Inc. (a)(d)(e)

592,400

8,458

Vale SA sponsored ADR

1,207,700

35,060

Ventana Gold Corp. (a)

836,400

6,416

 

3,102,186

TOTAL MATERIALS

3,502,470

TELECOMMUNICATION SERVICES - 0.5%

Diversified Telecommunication Services - 0.2%

AboveNet, Inc. (a)

463,857

30,169

Clearwire Corp.:

rights 6/21/10 (a)

1,924,176

770

Class A (a)

1,924,176

13,007

Iliad Group SA

48,853

5,841

Nippon Telegraph & Telephone Corp.

900,000

35,570

Telmex Internacional SAB de CV Series L ADR (c)

793,700

14,088

 

99,445

Wireless Telecommunication Services - 0.3%

American Tower Corp. Class A (a)

1,384,100

59,807

MTN Group Ltd.

1,512,700

24,068

NTT DoCoMo, Inc.

16,763

23,404

Sprint Nextel Corp. (a)

3,269,800

11,967

Vivo Participacoes SA sponsored ADR

2,984,900

92,532

 

211,778

TOTAL TELECOMMUNICATION SERVICES

311,223

UTILITIES - 0.1%

Multi-Utilities - 0.1%

YTL Corp. Bhd

24,945,630

53,184

Water Utilities - 0.0%

YTL Power International Bhd

34,795

23

TOTAL UTILITIES

53,207

TOTAL COMMON STOCKS

(Cost $45,894,804)

61,154,036

Preferred Stocks - 0.1%

Shares

Value (000s)

Convertible Preferred Stocks - 0.1%

FINANCIALS - 0.0%

Diversified Financial Services - 0.0%

Ning, Inc. Series D 8.00% (a)(h)

4,021,166

$ 23,705

HEALTH CARE - 0.0%

Health Care Equipment & Supplies - 0.0%

superDimension Ltd. (a)(h)

698,064

8,028

Life Sciences Tools & Services - 0.0%

Fluidigm Corp. (a)

1,313,082

9,192

TOTAL HEALTH CARE

17,220

INFORMATION TECHNOLOGY - 0.1%

Internet Software & Services - 0.0%

Digg, Inc. Series C, 8.00% (a)(h)

410,013

3,075

Software - 0.1%

Trion World Network, Inc. 8.00% (h)

3,950,196

21,691

TOTAL INFORMATION TECHNOLOGY

24,766

TOTAL CONVERTIBLE PREFERRED STOCKS

65,691

Nonconvertible Preferred Stocks - 0.0%

TELECOMMUNICATION SERVICES - 0.0%

Diversified Telecommunication Services - 0.0%

Slide, Inc. Series D (a)(h)

6,861,467

8,508

TOTAL PREFERRED STOCKS

(Cost $118,998)

74,199

Nonconvertible Bonds - 0.1%

 

Principal Amount (000s)

 

CONSUMER DISCRETIONARY - 0.0%

Automobiles - 0.0%

Ford Motor Co.:

6.375% 2/1/29

$ 3,995

2,936

6.625% 10/1/28

8,510

6,383

7.45% 7/16/31

12,765

11,281

 

20,600

Nonconvertible Bonds - continued

 

Principal Amount (000s)

Value (000s)

FINANCIALS - 0.1%

Diversified Financial Services - 0.1%

Ford Holdings LLC 9.3% 3/1/30

$ 36,585

$ 33,658

TOTAL NONCONVERTIBLE BONDS

(Cost $24,502)

54,258

Floating Rate Loans - 0.1%

 

CONSUMER DISCRETIONARY - 0.1%

Automobiles - 0.1%

Ford Motor Co. term loan 3.2871% 12/15/13 (f)

(Cost $31,102)

35,077

32,534

Money Market Funds - 5.2%

Shares

 

Fidelity Cash Central Fund, 0.16% (g)

2,805,286,254

2,805,286

Fidelity Securities Lending Cash Central Fund, 0.15% (b)(g)

549,248,427

549,248

TOTAL MONEY MARKET FUNDS

(Cost $3,354,534)

3,354,534

TOTAL INVESTMENT PORTFOLIO - 101.1%

(Cost $49,423,940)

64,669,561

NET OTHER ASSETS - (1.1)%

(695,891)

NET ASSETS - 100%

$ 63,973,670

Legend

(a) Non-income producing

(b) Investment made with cash collateral received from securities on loan.

(c) Security or a portion of the security is on loan at period end.

(d) Affiliated company

(e) 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 end of the period, the value of these securities amounted to $78,048,000 or 0.1% of net assets.

(f) The coupon rate shown on floating or adjustable rate securities represents the rate at period end.

(g) Affiliated fund that is available only to investment companies and other accounts managed by Fidelity Investments. The rate quoted is the annualized seven-day yield of the fund at period end. A complete unaudited listing of the fund's holdings as of its most recent quarter end is available upon request.

(h) Restricted securities - Investment in securities not registered under the Securities Act of 1933 (excluding 144A issues). At the end of the period, the value of restricted securities (excluding 144A issues) amounted to $94,029,000 or 0.1% of net assets.

Additional information on each holding is as follows:

Security

Acquisition Date

Acquisition Cost (000s)

Digg, Inc. Series C, 8.00%

9/23/08

$ 4,317

MannKind Corp. warrants 8/3/10

8/3/05

$ 8

Metro Bank PLC Class A

12/8/09

$ 13,307

Ning, Inc. Series D 8.00%

3/19/08

$ 28,751

Slide, Inc. Series D

1/14/08

$ 31,308

superDimension Ltd.

2/27/08 - 5/22/08

$ 14,960

The Weinstein Co. Holdings, LLC Class A-1

10/19/05

$ 41,234

Trion World Network, Inc. 8.00%

8/22/08

$ 21,691

(i) Security or a portion of the security purchased on a delayed delivery or when-issued basis.

Affiliated Central Funds

Information regarding fiscal year to date income earned by the Fund from investments in Fidelity Central Funds is as follows:

Fund

Income earned
(Amounts in thousands)

Fidelity Cash Central Fund

$ 16,568

Fidelity Securities Lending Cash Central Fund

16,646

Total

$ 33,214

Other Affiliated Issuers

An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Fiscal year to date transactions with companies which are or were affiliates are as follows:

Affiliate
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of period

AeroVironment, Inc.

$ 32,478

$ 49,226

$ 50,048

$ -

$ -

Amphenol Corp. Class A

223,614

37,744

57,211

561

407,853

AsiaInfo Holdings, Inc.

-

47,447

-

-

82,360

Birchcliff Energy Ltd.

19,257

21,373

-

-

84,025

Concur Technologies, Inc.

90,527

5,280

71,612

-

-

Constant Contact, Inc.

17,152

3,513

-

-

23,641

Discovery Communications, Inc.

69,840

131,231

-

-

335,683

Energy Conversion Devices, Inc.

72,211

1,298

48,244

-

-

FLIR Systems, Inc.

297,262

11,195

104,064

-

-

Franco-Nevada Corp.

131,383

52,094

30,242

1,811

222,316

Genoptix, Inc.

35,524

-

28,636

-

-

ICU Medical, Inc.

-

49,404

36,866

-

-

Ivanhoe Mines Ltd.

53,776

26,912

11,180

-

339,689

J. Crew Group, Inc.

76,063

3,333

-

-

282,965

Jacobs Engineering Group, Inc.

298,433

92,559

240,267

-

-

MannKind Corp.

26,331

3,354

5,618

-

66,708

McAfee, Inc.

247,564

138,551

16,368

-

411,783

Medivation, Inc.

24,497

36,591

5,448

-

119,736

Metro Bank PLC Class A

-

13,307

-

-

13,200

Mettler-Toledo International, Inc.

168,581

56,195

37,733

-

316,051

Neutral Tandem, Inc.

-

60,142

59,102

-

-

Noble Energy, Inc.

481,290

210,016

4,751

8,785

956,758

Northern Oil & Gas, Inc.

-

35,448

-

-

44,836

P.F. Chang's China Bistro, Inc.

-

32,855

37,668

-

-

Petroplus Holdings AG

80,124

33,645

47,744

1,837

-

Quality Systems, Inc.

70,825

19,276

5,160

2,293

123,381

Red Back Mining, Inc.

137,858

37,936

66,994

-

209,441

Royal Gold, Inc.

54,954

53,902

89,932

201

-

SmartHeat, Inc.

-

36,658

-

-

46,779

Sohu.com, Inc.

114,317

48,760

109,445

-

-

Strayer Education, Inc.

137,366

71,414

95,774

1,564

-

Affiliate
(Amounts in thousands)

Value, beginning of period

Purchases

Sales Proceeds

Dividend Income

Value,
end of period

Susser Holdings Corp.

$ 19,162

$ -

$ 9,328

$ -

$ -

Targacept, Inc.

-

18,641

-

-

31,733

Tim Hortons, Inc.

304,929

15,553

-

3,716

339,156

TreeHouse Foods, Inc.

85,000

1,457

-

-

122,751

Vivus, Inc.

22,128

2,423

24,978

-

-

Warnaco Group, Inc.

42,314

8,698

70,413

-

-

Total

$ 3,434,760

$ 1,467,431

$ 1,364,826

$ 20,768

$ 4,580,845

Other Information

The following is a summary of the inputs used, as of December 31, 2009, involving the Fund's assets and liabilities carried at value. The inputs or methodology used for valuing securities may not be an indication of the risk associated with investing in those securities. For more information on valuation inputs, and their aggregation into the levels used in the tables below, please refer to the Security Valuation section in the accompanying Notes to Financial Statements.

Valuation Inputs at Reporting Date:

Description
(Amounts in thousands)

Total

Level 1

Level 2

Level 3

Investments in Securities:

Equities:

Consumer Discretionary

$ 9,751,144

$ 9,242,957

$ 492,724

$ 15,463

Consumer Staples

5,293,005

5,032,348

260,657

-

Energy

4,814,429

4,781,857

32,572

-

Financials

7,908,308

7,572,278

299,125

36,905

Health Care

8,275,121

7,874,358

383,543

17,220

Industrials

1,953,557

1,867,289

86,268

-

Information Technology

19,357,263

18,491,485

841,012

24,766

Materials

3,502,470

3,408,626

93,844

-

Telecommunication Services

319,731

252,249

58,974

8,508

Utilities

53,207

53,207

-

-

Corporate Bonds

54,258

-

54,258

-

Floating Rate Loans

32,534

-

32,534

-

Money Market Funds

3,354,534

3,354,534

-

-

Total Investments in Securities:

$ 64,669,561

$ 61,931,188

$ 2,635,511

$ 102,862

The following is a reconciliation of Investments in Securities for which Level 3 inputs were used in determining value:

(Amounts in thousands)

 

Investments in Securities:

Beginning Balance

$ 327,739

Total Realized Gain (Loss)

(99,781)

Total Unrealized Gain (Loss)

(31,026)

Cost of Purchases

13,719

Proceeds of Sales

(72,219)

Amortization/Accretion

-

Transfers in/out of Level 3

(35,570)

Ending Balance

$ 102,862

The change in unrealized gain (loss) for the period attributable to Level 3 securities held at December 31, 2009

$ (10,111)

The information used in the above reconciliation represents fiscal year to date activity for any Investments in Securities identified as using Level 3 inputs at either the beginning or the end of the current fiscal period. Transfers in or out of Level 3 represents either the beginning value (for transfers in), or the ending value (for transfers out) of any Security or Instrument where a change in the pricing level occurred from the beginning to the end of the period. Realized and unrealized gains (losses) disclosed in the reconciliation are included in Net Gain (Loss) on the Fund's Statement of Operations.

Distribution of investments by country of issue, as a percentage of total net assets, is as follows: (Unaudited)

United States of America

77.7%

Canada

5.8%

China

2.6%

United Kingdom

2.1%

Ireland

1.5%

Switzerland

1.1%

Netherlands Antilles

1.0%

Others (individually less than 1%)

8.2%

 

100.0%

Income Tax Information

At December 31, 2009, the fund had a capital loss carryforward of approximately $5,732,817,000 of which $2,830,501,000 and $2,902,316,000 will expire on December 31, 2016 and 2017, respectively.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements

Statement of Assets and Liabilities

 Amounts in thousands (except per-share amounts)

December 31, 2009

 

 

 

Assets

Investment in securities, at value (including securities loaned of $531,860) - See accompanying schedule:

Unaffiliated issuers (cost $42,650,689)

$ 56,734,182

 

Fidelity Central Funds (cost $3,354,534)

3,354,534

 

Other affiliated issuers (cost $3,418,717)

4,580,845

 

Total Investments (cost $49,423,940)

 

$ 64,669,561

Cash

2,845

Receivable for investments sold

13,129

Receivable for fund shares sold

187,974

Dividends receivable

41,823

Interest receivable

1,902

Distributions receivable from Fidelity Central Funds

1,572

Prepaid expenses

261

Other receivables

2,666

Total assets

64,921,733

 

 

 

Liabilities

Payable for investments purchased

Regular delivery

$ 226,973

Delayed delivery

13,200

Payable for fund shares redeemed

107,284

Accrued management fee

40,013

Other affiliated payables

9,420

Other payables and accrued expenses

1,925

Collateral on securities loaned, at value

549,248

Total liabilities

948,063

 

 

 

Net Assets

$ 63,973,670

Net Assets consist of:

 

Paid in capital

$ 55,286,657

Undistributed net investment income

5,435

Accumulated undistributed net realized gain (loss) on investments and foreign currency transactions

(6,564,153)

Net unrealized appreciation (depreciation) on investments and assets and liabilities in foreign currencies

15,245,731

Net Assets

$ 63,973,670

Contrafund:
Net Asset Value
, offering price and redemption price per share ($57,224,798 ÷ 981,908 shares)

$ 58.28

 

 

 

Class K:
Net Asset Value
, offering price and redemption price per share ($6,748,872 ÷ 115,855 shares)

$ 58.25

See accompanying notes which are an integral part of the financial statements.

Annual Report

Statement of Operations

 Amounts in thousands

Year ended December 31, 2009

 

 

 

Investment Income

 

 

Dividends (including $20,768 earned from other affiliated issuers)

 

$ 615,513

Interest

 

3,749

Income from Fidelity Central Funds

 

33,214

Total income

 

652,476

 

 

 

Expenses

Management fee
Basic fee

$ 298,405

Performance adjustment

117,515

Transfer agent fees

109,244

Accounting and security lending fees

2,686

Custodian fees and expenses

2,383

Independent trustees' compensation

370

Appreciation in deferred trustee compensation account

1

Registration fees

507

Audit

291

Legal

269

Miscellaneous

1,176

Total expenses before reductions

532,847

Expense reductions

(3,629)

529,218

Net investment income (loss)

123,258

Realized and Unrealized Gain (Loss)

Net realized gain (loss) on:

Investment securities:

 

 

Unaffiliated issuers

(258,814)

Other affiliated issuers

(211,219)

 

Foreign currency transactions

(1,102)

Cap gain distributions from Fidelity Central Funds

46

Total net realized gain (loss)

 

(471,089)

Change in net unrealized appreciation (depreciation) on:

Investment securities

14,688,794

Assets and liabilities in foreign currencies

(57)

Total change in net unrealized appreciation (depreciation)

 

14,688,737

Net gain (loss)

14,217,648

Net increase (decrease) in net assets resulting from operations

$ 14,340,906

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Statements - continued

Statement of Changes in Net Assets

 Amounts in thousands

Year ended
December 31, 2009

Year ended
December 31, 2008

Increase (Decrease) in Net Assets

 

 

Operations

 

 

Net investment income (loss)

$ 123,258

$ 252,242

Net realized gain (loss)

(471,089)

(5,913,986)

Change in net unrealized appreciation (depreciation)

14,688,737

(24,064,404)

Net increase (decrease) in net assets resulting
from operations

14,340,906

(29,726,148)

Distributions to shareholders from net investment income

(132,704)

(228,923)

Distributions to shareholders from net realized gain

(92,816)

(717,940)

Total distributions

(225,520)

(946,863)

Share transactions - net increase (decrease)

1,408,294

(2,020,966)

Total increase (decrease) in net assets

15,523,680

(32,693,977)

 

 

 

Net Assets

Beginning of period

48,449,990

81,143,967

End of period (including undistributed net investment income of $5,435 and undistributed net investment income of $15,798, respectively)

$ 63,973,670

$ 48,449,990

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Contrafund

Years ended December 31,
2009
2008
2007
2006
2005

Selected Per-Share Data

 

 

 

 

 

Net asset value, beginning of period

$ 45.26

$ 73.11

$ 65.21

$ 64.76

$ 56.74

Income from Investment Operations

 

 

 

 

 

Net investment income (loss)B

  .11

  .23

  .48

  .41

  .27

Net realized and unrealized gain (loss)

  13.11

  (27.22)

  12.34

  6.92

  8.95

Total from investment operations

  13.22

  (26.99)

  12.82

  7.33

  9.22

Distributions from net investment income

  (.11)

  (.21)

  (.44)

  (.39)

  (.23)

Distributions from net realized gain

  (.09)

  (.65)

  (4.48)

  (6.49)

  (.97)

Total distributions

  (.20)

  (.86)

  (4.92)

  (6.88)

  (1.20)

Net asset value, end of period

$ 58.28

$ 45.26

$ 73.11

$ 65.21

$ 64.76

Total ReturnA

  29.23%

  (37.16) %

  19.78%

  11.54%

  16.23%

Ratios to Average Net AssetsC,E

 

 

 

 

 

Expenses before reductions

  1.02%

  .95%

  .89%

  .90%

  .91%

Expenses net of fee waivers, if any

  1.02%

  .95%

  .89%

  .90%

  .91%

Expenses net of all reductions

  1.01%

  .94%

  .89%

  .89%

  .88%

Net investment income (loss)

  .22%

  .37%

  .68%

  .62%

  .46%

Supplemental Data

 

 

 

 

 

Net assets, end of period
(in millions)

$ 57,225

$ 45,149

$ 81,144

$ 68,576

$ 60,143

Portfolio turnover rateD

  58%

  78%

  56%

  76%

  60%

A Total returns would have been lower had certain expenses not been reduced during the periods shown.

B Calculated based on average shares outstanding during the period.

C Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

D Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

E Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Financial Highlights - Class K

Years ended December 31,
2009
2008G

Selected Per-Share Data

 

 

Net asset value, beginning of period

$ 45.23

$ 68.59

Income from Investment Operations

 

 

Net investment income (loss)D

  .19

  .22

Net realized and unrealized gain (loss)

  13.11

  (23.30)

Total from investment operations

  13.30

  (23.08)

Distributions from net investment income

  (.20)

  (.28)

Distributions from net realized gain

  (.09)

  -

Total distributions

  (.28)I

  (.28)

Net asset value, end of period

$ 58.25

$ 45.23

Total ReturnB,C

  29.43%

  (33.63)%

Ratios to Average Net AssetsE,H

 

 

Expenses before reductions

  .86%

  .82%A

Expenses net of fee waivers, if any

  .86%

  .82%A

Expenses net of all reductions

  .85%

  .82%A

Net investment income (loss)

  .38%

  .75%A

Supplemental Data

 

 

Net assets, end of period (in millions)

$ 6,749

$ 3,301

Portfolio turnover rateF

  58%

  78%

A Annualized

B Total returns for periods of less than one year are not annualized.

C Total returns would have been lower had certain expenses not been reduced during the periods shown.

D Calculated based on average shares outstanding during the period.

E Fees and expenses of the underlying Fidelity Central Funds are not included in the Fund's expense ratio. The Fund indirectly bears its proportionate share of the expenses of any underlying Fidelity Central Funds.

F Amount does not include the portfolio activity of any underlying Fidelity Central Funds.

G For the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.

H Expense ratios reflect operating expenses of the class. Expenses before reductions do not reflect amounts reimbursed by the investment adviser or reductions from brokerage service arrangements or reductions from other expense offset arrangements and do not represent the amount paid by the class during periods when reimbursements or reductions occur. Expense ratios before reductions for start-up periods may not be representative of longer-term operating periods. Expenses net of fee waivers reflect expenses after reimbursement by the investment adviser but prior to reductions from brokerage service arrangements or other expense offset arrangements. Expenses net of all reductions represent the net expenses paid by the class.

I Total distributions of $.281 per share is comprised of distributions from net investment income of $.196 and distributions from net realized gain of $.085 per share.

See accompanying notes which are an integral part of the financial statements.

Annual Report

Notes to Financial Statements

For the period ended December 31, 2009

(Amounts in thousands except ratios)

1. Organization.

Fidelity Contrafund (the Fund) is a fund of Fidelity Contrafund (the trust) and is authorized to issue an unlimited number of shares. The trust is registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company organized as a Massachusetts business trust. The Fund offers Contrafund and Class K shares, each of which has equal rights as to assets and voting privileges. Each class has exclusive voting rights with respect to matters that affect that class. After the commencement of Class K, the Fund began offering conversion privileges between Contrafund and Class K to eligible shareholders of Contrafund. Investment income, realized and unrealized capital gains and losses, the common expenses of the Fund, and certain fund-level expense reductions, if any, are allocated on a pro-rata basis to each class based on the relative net assets of each class to the total net assets of the Fund. Each class differs with respect to transfer agent fees incurred. Certain expense reductions also differ by class.

2. Investments in Fidelity Central Funds.

The Fund may invest in Fidelity Central Funds, which are open-end investment companies available only to other investment companies and accounts managed by Fidelity Management & Research Company (FMR) and its affiliates. The Fund's Schedule of Investments lists each of the Fidelity Central Funds held as of period end, if any, as an investment of the Fund, but does not include the underlying holdings of each Fidelity Central Fund. As an Investing Fund, the Fund indirectly bears its proportionate share of the expenses of the underlying Fidelity Central Funds.

The Money Market Central Funds seek preservation of capital and current income and are managed by Fidelity Investments Money Management, Inc. (FIMM), an affiliate of FMR.

A complete unaudited list of holdings for each Fidelity Central Fund is available upon request or at the Securities and Exchange Commission (the SEC) web site at www.sec.gov. In addition, the financial statements of the Fidelity Central Funds, which are not covered by the Fund's Report of Independent Registered Public Accounting Firm, are available on the SEC web site or upon request.

3. Significant Accounting Policies.

The financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America, which require management to make certain estimates and assumptions at the date of the financial statements. Actual results could differ from those estimates. Events or transactions occurring after period end through the date that the financial statements were issued, February 18, 2010, have been evaluated in the preparation of the financial statements. The following summarizes the significant accounting policies of the Fund:

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Security Valuation. Investments are valued as of 4:00 p.m. Eastern time on the last calendar day of the period. The Fund uses independent pricing services approved by the Board of Trustees to value its investments. When current market prices or quotations are not readily available or reliable, valuations may be determined in good faith in accordance with procedures adopted by the Board of Trustees. Factors used in determining value may include significant market or security specific events, changes in interest rates and credit quality. The frequency with which these procedures are used cannot be predicted and may be utilized to a significant extent. The value used for net asset value (NAV) calculation under these procedures may differ from published prices for the same securities.

The Fund categorizes the inputs to valuation techniques used to value its investments into a disclosure hierarchy consisting of three levels as shown below.

Level 1 - quoted prices in active markets for identical investments

Level 2 - other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, etc.)

Level 3 - unobservable inputs (including the fund's own assumptions based on the best information available)

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The aggregate value of investments by input level, as of December 31, 2009, as well as a roll forward of Level 3 securities, is included at the end of the Fund's Schedule of Investments. Valuation techniques used to value the Fund's investments by major category are as follows.

Equity securities, including restricted securities, for which market quotations are readily available, are valued at the last reported sale price or official closing price as reported by an independent pricing service on the primary market or exchange on which they are traded and are categorized as Level 1 in the hierarchy. In the event there were no sales during the day or closing prices are not available, securities are valued at the last quoted bid price or may be valued using the last available price and categorized as Level 2 in the hierarchy. For foreign equity securities, when significant market or security events arise, comparisons to the valuation of American Depository Receipts (ADRs), futures contracts, exchange-traded funds (ETFs) and certain indexes as well as quoted prices for similar securities are used and are categorized as Level 2 in the hierarchy in these circumstances. For restricted securities and private placements where observable inputs are limited, assumptions about market activity and risk are used and are categorized as Level 3 in the hierarchy.

Annual Report

3. Significant Accounting Policies - continued

Security Valuation - continued

Debt securities, including restricted securities, are valued based on evaluated quotations received from independent pricing services or from dealers who make markets in such securities. For corporate bonds and floating rate loans, pricing services utilize matrix pricing which considers yield or price of bonds of comparable quality, coupon, maturity and type as well as dealer supplied prices and are generally categorized as Level 2 in the hierarchy.

Investments in open-end mutual funds, including the Fidelity Money Market Central Funds, are valued at their closing net asset value each business day and are categorized as Level 1 in the hierarchy. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost, which approximates value and are categorized as level 2 in the hierarchy.

When independent prices are unavailable or unreliable, debt securities may be valued utilizing pricing matrices which consider similar factors that would be used by independent pricing services. These are generally categorized as Level 2 in the hierarchy but may be Level 3 depending on the circumstances.

Foreign Currency. The Fund uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses from these transactions may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms.

Foreign-denominated assets, including investment securities, and liabilities are translated into U.S. dollars at the exchange rate at period end. Purchases and sales of investment securities, income and dividends received and expenses denominated in foreign currencies are translated into U.S. dollars at the exchange rate in effect on the transaction date.

The effects of exchange rate fluctuations on investments are included with the net realized and unrealized gain (loss) on investment securities. Other foreign currency transactions resulting in realized and unrealized gain (loss) are disclosed separately.

Investment Transactions and Income. For financial reporting purposes, the Fund's investment holdings and NAV include trades executed through the end of the last business day of the period. The NAV per share for processing shareholder transactions is calculated as of the close of business of the New York Stock Exchange (NYSE), normally 4:00 p.m. Eastern time and includes trades executed through the end of the prior business day. Gains and losses on securities sold are determined on the basis of identified cost and may include proceeds received from litigation. Dividend income is recorded on the ex-dividend date, except for certain dividends from foreign securities where the ex-dividend date may have passed, which are recorded as soon as the Fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

3. Significant Accounting Policies - continued

Investment Transactions and Income - continued

recorded at the fair market value of the securities received. Distributions received on securities that represent a return of capital or capital gain are recorded as a reduction of cost of investments and/or as a realized gain. The Fund estimates the components of distributions received that may be considered return of capital distributions or capital gain distributions. Interest income and distributions from the Fidelity Central Funds are accrued as earned. Interest income includes coupon interest and amortization of premium and accretion of discount on debt securities. 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 each Fund in the trust. Expense estimates are accrued in the period to which they relate and adjustments are made when actual amounts are known.

Deferred Trustee Compensation. Under a Deferred Compensation Plan (the Plan), independent 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 invested in a cross-section of Fidelity funds, are marked-to-market and remain in the Fund until distributed in accordance with the Plan. The investment of deferred amounts and the offsetting payable to the Trustees are included in the accompanying Statement of Assets and Liabilities.

Income Tax Information and Distributions to Shareholders. Each year, the Fund intends to qualify as a regulated investment company by distributing substantially all of its taxable income and realized gains under Subchapter M of the Internal Revenue Code and filing its U.S. federal tax return. As a result, no provision for income taxes is required. As of December 31, 2009, the Fund did not have any unrecognized tax benefits in the accompanying financial statements. A Fund's federal tax return is subject to examination by the Internal Revenue Service (IRS) for a period of three years. Foreign taxes are provided for based on the Fund's understanding of the tax rules and rates that exist in the foreign markets in which it invests.

Distributions are recorded on the ex-dividend date. Income dividends and capital gain distributions are declared separately for each class. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from generally accepted accounting principles.

Capital accounts within the financial statements are adjusted for permanent book-tax differences. These adjustments have no impact on net assets or the results of operations. Temporary book-tax differences will reverse in a subsequent period.

Annual Report

3. Significant Accounting Policies - continued

Income Tax Information and Distributions to Shareholders - continued

Book-tax differences are primarily due to the short-term gain distributions from the Fidelity Central Funds, foreign currency transactions, passive foreign investment companies (PFIC), market discount, partnerships, deferred trustees compensation, capital loss carryforwards, and losses deferred due to wash sales and excise tax regulations.

The federal tax cost of investment securities and unrealized appreciation (depreciation) as of period end were as follows:

Gross unrealized appreciation

$ 15,672,900

Gross unrealized depreciation

(1,032,100)

Net unrealized appreciation (depreciation)

$ 14,640,800

 

 

Tax Cost

$ 50,028,761

The tax-based components of distributable earnings as of period end were as follows:

Undistributed ordinary income

$ 94,278

Capital loss carryforward

$ (5,732,817)

Net unrealized appreciation (depreciation)

$ 14,640,910

The tax character of distributions paid was as follows:

 

December 31, 2009

December 31, 2008

Ordinary Income

$ 225,520

$ 228,923

Long-term Capital Gains

-

717,940

Total

$ 225,520

$ 946,863

4. Operating Policies.

Delayed Delivery Transactions and When-Issued Securities. The Fund may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. 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. During the time a delayed delivery sell is outstanding, the contract is marked-to-market daily and equivalent deliverable securities are held for the transaction. The value of the securities purchased on a delayed delivery or when-issued basis are identified as such in the Fund's Schedule of

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

4. Operating Policies - continued

Delayed Delivery Transactions and When-Issued Securities - continued

Investments. The Fund may receive compensation for interest forgone in the purchase of a delayed delivery or when-issued 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 value of the underlying securities or if the counterparty does not perform under the contract's terms, or if the issuer does not issue the securities due to political, economic, or other factors.

Restricted Securities. The Fund may 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. Information regarding restricted securities is included at the end of the Fund's Schedule of Investments.

Loans and Other Direct Debt Instruments. The Fund may invest in loans and loan participations, trade claims or other receivables. These investments may include standby financing commitments, including revolving credit facilities, that obligate the Fund to supply additional cash to the borrower on demand. Loan participations involve a risk of insolvency of the lending bank or other financial intermediary. The Fund may be contractually obligated to receive approval from the agent bank and/or borrower prior to the sale of these investments.

5. Purchases and Sales of Investments.

Purchases and sales of securities, other than short-term securities, aggregated $30,015,866 and $28,570,822, respectively.

6. Fees and Other Transactions with Affiliates.

Management Fee. FMR and its affiliates provide the Fund with investment management related services for which the Fund pays a monthly management fee. The management fee is the sum of an individual fund fee rate that is based on an annual rate of .30% of the Fund's average net assets and a group fee rate that averaged .26% during the period. The group fee rate is based upon the average net assets of all the mutual funds advised by FMR. The group fee rate decreases as assets under management increase and increases as assets under management decrease. In addition, the management fee is subject to a performance adjustment (up to a maximum of ± .20% of the Fund's average net assets over a 36 month performance period). The upward or downward adjustment to

Annual Report

6. Fees and Other Transactions with Affiliates - continued

Management Fee - continued

the management fee is based on the relative investment performance of the retail class of the Fund, Contrafund, as compared to an appropriate benchmark index. For the period, the total annual management fee rate, including the performance adjustment, was .78% of the Fund's average net assets.

Transfer Agent Fees. Fidelity Investments Institutional Operations Company, Inc. (FIIOC), an affiliate of FMR, is the transfer, dividend disbursing and shareholder servicing agent for each class of the Fund. FIIOC receives account fees and asset-based fees that vary according to the account size and type of account of the shareholders of Contrafund. FIIOC receives an asset-based fee of Class K's average net assets. FIIOC pays for typesetting, printing and mailing of shareholder reports, except proxy statements. For the period, the total transfer agent fees paid by each applicable class were as follows:

 

Amount

% of
Average
Net Assets

Contrafund

$ 106,283

.22

Class K

2,961

.06

 

$ 109,244

 

Accounting and Security Lending Fees. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, maintains the Fund's accounting records. The accounting fee is based on the level of average net assets for the month. Under a separate contract, FSC administers the security lending program. The security lending fee is based on the number and duration of lending transactions.

Brokerage Commissions. The Fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of the investment adviser. The commissions paid to these affiliated firms were $312 for the period.

7. Committed Line of Credit.

The Fund participates with other funds managed by FMR in a $3.5 billion credit facility (the "line of credit") to be utilized for temporary or emergency purposes to fund shareholder redemptions or for other short-term liquidity purposes. The Fund has agreed to pay commitment fees on its pro-rata portion of the line of credit, which amounted to $261 and is reflected in Miscellaneous Expense on the Statement of Operations. During the period, there were no borrowings on this line of credit.

Annual Report

Notes to Financial Statements - continued

(Amounts in thousands except ratios)

8. Security Lending.

The Fund lends portfolio securities from time to time in order to earn additional income. On the settlement date of the loan, the Fund receives collateral (in the form of U.S. Treasury obligations, letters of credit and/or cash) against the loaned securities and maintains collateral in an amount 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. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. Any cash collateral received is invested in the Fidelity Securities Lending Cash Central Fund. The value of loaned securities and cash collateral at period end are disclosed on the Fund's Statement of Assets and Liabilities. Security lending income represents the income earned on investing cash collateral, less fees and expenses associated with the loan, plus any premium payments that may be received on the loan of certain types of securities. Security lending income is presented in the Statement of Operations as a component of income from Fidelity Central Funds. Net income from lending portfolio securities during the period amounted to $16,646.

9. Expense Reductions.

FMR voluntarily agreed to reimburse a portion of Contrafund's operating expenses. During the period, this reimbursement reduced the class' expenses by $20.

Many of the brokers with whom FMR places trades on behalf of the Fund provided services to the Fund in addition to trade execution. These services included payments of certain expenses on behalf of the Fund totaling $3,601 for the period. In addition, through arrangements with the Fund's custodian, credits realized as a result of uninvested cash balances were used to reduce the Fund's expenses. During the period, these credits reduced the Fund's custody expenses by $8.

Annual Report

10. Distributions to Shareholders.

Distributions to shareholders of each class were as follows:

Years ended December 31,

2009

2008A

From net investment income

 

 

Contrafund

$ 110,638

$ 208,629

Class K

22,066

20,294

Total

$ 132,704

$ 228,923

From net realized gain

 

 

Contrafund

$ 83,038

$ 717,940

Class K

9,778

-

Total

$ 92,816

$ 717,940

A Distributions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.

11. Share Transactions.

Transactions for each class of shares were as follows:

 

Shares

Dollars

2009B

2008A

2009B

2008A

Contrafund

 

 

 

 

Shares sold

185,518

153,230

$ 8,936,796

$ 9,211,642

Conversion to Class K

(28,838)

(71,716)

(1,280,867)

(3,520,561)

Reinvestment of distributions

3,386

15,647

188,452

906,942

Shares redeemed

(175,665)

(209,487)

(8,469,845)

(12,197,066)

Net increase (decrease)

(15,599)

(112,326)

$ (625,464)

$ (5,599,043)

Class K

 

 

 

 

Shares sold

33,635

3,604

$ 1,711,298

$ 167,149

Conversion from Contrafund

28,843

71,676

1,280,867

3,520,561

Reinvestment of distributions

566

462

31,844

20,294

Shares redeemed

(20,158)

(2,773)

(990,251)

(129,927)

Net increase (decrease)

42,886

72,969

$ 2,033,758

$ 3,578,077

A Share transactions for Class K are for the period May 9, 2008 (commencement of sale of shares) to December 31, 2008.

B Conversion transactions for Class K and Contrafund are for the period January 1, 2009 through August 31, 2009.

12. Other.

The Fund's organizational documents provide former and current trustees and officers with a limited indemnification against liabilities arising in connection with the performance of their duties to the Fund. In the normal course of business, the Fund may also enter into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is unknown as this would be dependent on future claims that may be made against the Fund. The risk of material loss from such claims is considered remote.

Annual Report

Report of Independent Registered Public Accounting Firm

To the Trustees of Fidelity Contrafund and the Shareholders of Fidelity Contrafund:

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 Contrafund (a fund of Fidelity Contrafund) at December 31, 2009, the results of its operations for the year then ended, the changes in its net assets for each of the two years in the period then ended and the financial highlights for each of the periods indicated, in conformity with accounting principles generally accepted in the United States of America. These financial statements and financial highlights (hereafter referred to as "financial statements") are the responsibility of the Fidelity Contrafund'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 the standards of the Public Company Accounting Oversight Board (United States). Those standards 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 December 31, 2009 by correspondence with the custodian and brokers, provide a reasonable basis for our opinion.

/s/ PricewaterhouseCoopers LLP

PricewaterhouseCoopers LLP

Boston, Massachusetts

February 18, 2010

Annual Report

Trustees and Officers

The Trustees, Member of the Advisory Board, and executive officers of the trust and fund, as applicable, are listed below. The Board of Trustees governs the fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee the fund's activities, review contractual arrangements with companies that provide services to the fund, and review the fund's performance. Except for James C. Curvey, each of the Trustees oversees 222 funds advised by FMR or an affiliate. Mr. Curvey oversees 410 funds advised by FMR or an affiliate.

The Trustees hold office without limit in time except that (a) any Trustee may resign; (b) any Trustee may be removed by written instrument, signed by at least two-thirds of the number of Trustees prior to such removal; (c) any Trustee who requests to be retired or who has become incapacitated by illness or injury may be retired by written instrument signed by a majority of the other Trustees; and (d) any Trustee may be removed at any special meeting of shareholders by a two-thirds vote of the outstanding voting securities of the trust. Each Trustee who is not an interested person (as defined in the 1940 Act) (Independent Trustee), shall retire not later than the last day of the calendar year in which his or her 72nd birthday occurs. The Independent Trustees may waive this mandatory retirement age policy with respect to individual Trustees. The executive officers and Advisory Board Member hold office without limit in time, except that any officer and Advisory Board Member may resign or may be removed by a vote of a majority of the Trustees at any regular meeting or any special meeting of the Trustees. Except as indicated, each individual has held the office shown or other offices in the same company for the past five years.

The fund's Statement of Additional Information (SAI) includes more information about the Trustees. To request a free copy, call Fidelity at 1-800-835-5092.

Interested Trustees*:

Correspondence intended for each Trustee who is an interested person may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Edward C. Johnson 3d (79)

 

Year of Election or Appointment: 1984

Mr. Johnson is Trustee and Chairman of the Board of Trustees of certain Trusts. Mr. Johnson serves as Chief Executive Officer, Chairman, and a Director of FMR LLC; Chairman and a Director of FMR; Chairman and a Director of Fidelity Research & Analysis Company (FRAC); Chairman and a Director of Fidelity Investments Money Management, Inc.; and Chairman and a Director of FMR Co., Inc. In addition, Mr. Johnson serves as Chairman and Director of FIL Limited. Previously, Mr. Johnson served as President of FMR LLC (2006-2007).

James C. Curvey (74)

 

Year of Election or Appointment: 2007

Mr. Curvey also serves as Trustee (2007-present) of other investment companies advised by FMR. Mr. Curvey is a Director of FMR and FMR Co., Inc. (2007-present). Mr. Curvey is also Vice Chairman (2006-present) and Director of FMR LLC. In addition, Mr. Curvey serves as an Overseer for the Boston Symphony Orchestra and a member of the Trustees of Villanova University.

* Trustees have been determined to be "Interested Trustees" by virtue of, among other things, their affiliation with the trust or various entities under common control with FMR.

Independent Trustees:

Correspondence intended for each Independent Trustee (that is, the Trustees other than the Interested Trustees) may be sent to Fidelity Investments, P.O. Box 55235, Boston, Massachusetts 02205-5235.

Name, Age; Principal Occupation

Dennis J. Dirks (61)

 

Year of Election or Appointment: 2005

Prior to his retirement in May 2003, Mr. Dirks was Chief Operating Officer and a member of the Board of The Depository Trust & Clearing Corporation (DTCC). He also served as President, Chief Operating Officer, and Board member of The Depository Trust Company (DTC) and President and Board member of the National Securities Clearing Corporation (NSCC). In addition, Mr. Dirks served as Chief Executive Officer and Board member of the Government Securities Clearing Corporation, Chief Executive Officer and Board member of the Mortgage-Backed Securities Clearing Corporation, as a Trustee and a member of the Finance Committee of Manhattan College (2005-2008), and as a Trustee and a member of the Finance Committee of AHRC of Nassau County (2006-2008). Currently, Mr. Dirks serves as a member of the Board of Directors for The Brookville Center for Children's Services, Inc. (2009-present).

Alan J. Lacy (56)

 

Year of Election or Appointment: 2008

Mr. Lacy serves as Senior Adviser (2007-present) of Oak Hill Capital Partners, L.P. (private equity). Mr. Lacy also served as Chief Executive Officer (2000-2005) and Vice Chairman (2005-2006) of Sears Holdings Corporation and Sears, Roebuck and Co. (retail). In addition, Mr. Lacy serves as a member of the Board of Directors of The Western Union Company (global money transfer, 2006-present) and Bristol-Myers Squibb Company (global pharmaceuticals, 2007-present). Mr. Lacy is Chairman (2008-present) and a member (2006-present) of the Board of Trustees of The National Parks Conservation Association.

Ned C. Lautenbach (65)

 

Year of Election or Appointment: 2000

Mr. Lautenbach is Chairman of the Independent Trustees of the Equity and High Income Funds (2006-present). Mr. Lautenbach is an Advisory Partner of Clayton, Dubilier & Rice, Inc. (private equity investment). Previously, Mr. Lautenbach was with the International Business Machines Corporation (IBM) from 1968 until his retirement in 1998. Mr. Lautenbach serves as a Director of Eaton Corporation (diversified industrial) as well as the Philharmonic Center for the Arts in Naples, Florida. Mr. Lautenbach is also a member of the Board of Trustees of Fairfield University (2005-present), as well as a member of the Council on Foreign Relations. Previously, Mr. Lautenbach served as a Director of Sony Corporation (2006-2007).

Joseph Mauriello (65)

 

Year of Election or Appointment: 2008

Prior to his retirement in January 2006, Mr. Mauriello served in numerous senior management positions including Deputy Chairman and Chief Operating Officer (2004-2005), and Vice Chairman of Financial Services (2002-2004) of KPMG LLP US (professional services, 1965-2005). Mr. Mauriello currently serves as a member of the Board of Directors of XL Capital Ltd. (global insurance and re-insurance, 2006-present) and of Arcadia Resources Inc. (health care services and products, 2007-present). Previously, Mr. Mauriello served as a Director of the Hamilton Funds of the Bank of New York (2006-2007).

Cornelia M. Small (65)

 

Year of Election or Appointment: 2005

Ms. Small is a member of the Board of Directors of the Teagle Foundation (2009-present). Ms. Small is also a member of the Investment Committee, and Chair (2008-present) and a member of the Board of Trustees of Smith College. In addition, Ms. Small serves on the Investment Committee of the Berkshire Taconic Community Foundation (2008-present). Previously, Ms. Small served as Chairperson of the Investment Committee (2002-2008) of Smith College. In addition, Ms. Small served as Chief Investment Officer, Director of Global Equity Investments, and a member of the Board of Directors of Scudder, Stevens & Clark and Scudder Kemper Investments.

William S. Stavropoulos (70)

 

Year of Election or Appointment: 2001

Mr. Stavropoulos serves as President and Founder of the Michigan Baseball Foundation, the Great Lakes Loons (2007-present). Mr. Stavropoulos is Chairman Emeritus of the Board of Directors of The Dow Chemical Company, where he previously served in numerous senior management positions, including President, CEO (1995-2000; 2002-2004), Chairman of the Executive Committee (2000-2006), and as a member of the Board of Directors (1990-2006). Currently, Mr. Stavropoulos is a Director of Teradata Corporation (data warehousing and technology solutions, 2008-present), Chemical Financial Corporation, Maersk Inc. (industrial conglomerate), Tyco International, Inc. (multinational manufacturing and services, 2007-present), and a member of the Advisory Board for Metalmark Capital (private equity investment, 2005-present). Mr. Stavropoulos is a special advisor to Clayton, Dubilier & Rice, Inc. (private equity investment). In addition, Mr. Stavropoulos is a member of the University of Notre Dame Advisory Council for the College of Science.

David M. Thomas (60)

 

Year of Election or Appointment: 2008

Previously, Mr. Thomas served as Executive Chairman (2005-2006) and Chairman and Chief Executive Officer (2000-2005) of IMS Health, Inc. (pharmaceutical and healthcare information solutions). In addition, Mr. Thomas serves as a member of the Board of Directors of Fortune Brands, Inc. (consumer products), and Interpublic Group of Companies, Inc. (marketing communication, 2004-present).

Michael E. Wiley (59)

 

Year of Election or Appointment: 2008

Mr. Wiley also serves as a Director of Asia Pacific Exploration Consolidated (international oil and gas exploration and production, 2008-present), and as a member of the Board of Trustees of the University of Tulsa (2000-2006; 2007-present). Mr. Wiley serves as a Director of Tesoro Corporation (independent oil refiner and marketer, 2005-present), and a Director of Bill Barrett Corporation (exploration and production, 2005-present). In addition, Mr. Wiley also serves as a Director of Post Oak Bank (privately-held bank, 2004-present). Previously, Mr. Wiley served as a Sr. Energy Advisor of Katzenbach Partners, LLC (consulting, 2006-2007), as an Advisory Director of Riverstone Holdings (private investment), Chairman, President, and CEO of Baker Hughes, Inc. (oilfield services, 2000-2004), and as Director of Spinnaker Exploration Company (exploration and production, 2001-2005).

Advisory Board Member and Executive Officers:

Correspondence intended for each executive officer and Peter S. Lynch may be sent to Fidelity Investments, 82 Devonshire Street, Boston, Massachusetts 02109.

Name, Age; Principal Occupation

Peter S. Lynch (65)

 

Year of Election or Appointment: 2003

Member of the Advisory Board of Fidelity's Equity and High Income Funds. Mr. Lynch is Vice Chairman and a Director of FMR and FMR Co., Inc. In addition, Mr. Lynch serves as a Trustee of Boston College and as the Chairman of the Inner-City Scholarship Fund. Previously, Mr. Lynch served on the Special Olympics International Board of Directors (1997-2006).

Kenneth B. Robins (40)

 

Year of Election or Appointment: 2008

President and Treasurer of Fidelity's Equity and High Income Funds. Mr. Robins also serves as Assistant Treasurer of other Fidelity funds (2009-present) and is an employee of Fidelity Investments (2004-present). Before joining Fidelity Investments, Mr. Robins worked at KPMG LLP, where he was a partner in KPMG's department of professional practice (2002-2004).

Bruce T. Herring (44)

 

Year of Election or Appointment: 2006

Vice President of certain Equity Funds. Mr. Herring also serves as Group Chief Investments Officer of FMR. Previously, Mr. Herring served as a portfolio manager for Fidelity U.S. Equity Funds.

Brian B. Hogan (45)

 

Year of Election or Appointment: 2009

Vice President of certain Equity Funds and Vice President of Sector Funds. Mr. Hogan also serves as Senior Vice President, Equity Research of FMR (2006-present) and President of FMR's Equity Division (2009-present). Previously, Mr. Hogan served as a portfolio manager.

Scott C. Goebel (41)

 

Year of Election or Appointment: 2008

Secretary and Chief Legal Officer (CLO) of the Fidelity funds. Mr. Goebel also serves as General Counsel, Secretary, and Senior Vice President of FMR (2008-present) and FMR Co., Inc. (2008-present); Deputy General Counsel of FMR LLC; Chief Legal Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present) and Assistant Secretary of Fidelity Management & Research (Japan) Inc. (2008-present), Fidelity Investments Money Management, Inc. (2008-present), Fidelity Management & Research (U.K.) Inc. (2008-present), and Fidelity Research and Analysis Company (2008-present). Previously, Mr. Goebel served as Assistant Secretary of the Funds (2007-2008) and as Vice President and Secretary of Fidelity Distributors Corporation (FDC) (2005-2007).

William C. Coffey (40)

 

Year of Election or Appointment: 2009

Assistant Secretary of Fidelity's Equity and High Income Funds. Mr. Coffey also serves as Vice President and Associate General Counsel of FMR LLC (2005-present), and is an employee of Fidelity Investments.

Holly C. Laurent (55)

 

Year of Election or Appointment: 2008

Anti-Money Laundering (AML) Officer of the Fidelity funds. Ms. Laurent is an employee of Fidelity Investments. Previously, Ms. Laurent was Senior Vice President and Head of Legal for Fidelity Business Services India Pvt. Ltd. (2006-2008), and Senior Vice President, Deputy General Counsel and Group Head for FMR LLC (2005-2006).

Christine Reynolds (51)

 

Year of Election or Appointment: 2008

Chief Financial Officer of the Fidelity funds. Ms. Reynolds became President of Fidelity Pricing and Cash Management Services (FPCMS) in August 2008. Ms. Reynolds served as Chief Operating Officer of FPCMS (2007-2008). Previously, Ms. Reynolds served as President, Treasurer, and Anti-Money Laundering officer of the Fidelity funds (2004-2007).

Kenneth A. Rathgeber (62)

 

Year of Election or Appointment: 2004

Chief Compliance Officer of Fidelity's Equity and High Income Funds. Mr. Rathgeber is Chief Compliance Officer of Fidelity Management & Research (Hong Kong) Limited (2008-present), Fidelity Management & Research (Japan) Inc. (2008-present), FMR (2005-present), FMR Co., Inc. (2005-present), Fidelity Management & Research (U.K.) Inc. (2005-present), Fidelity Research & Analysis Company (2005-present), Fidelity Investments Money Management, Inc. (2005-present), Pyramis Global Advisors, LLC (2005-present), and Strategic Advisers, Inc. (2005-present).

Jeffrey S. Christian (48)

 

Year of Election or Appointment: 2009

Deputy Treasurer of the Fidelity funds. Mr. Christian is an employee of Fidelity Investments. Previously, Mr. Christian served as Chief Financial Officer (2008-2009) of certain Fidelity funds, Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (2004-2009), and as Vice President of Business Analysis (2003-2004).

Bryan A. Mehrmann (48)

 

Year of Election or Appointment: 2005

Deputy Treasurer of the Fidelity funds. Mr. Mehrmann is an employee of Fidelity Investments. Previously, Mr. Mehrmann served as Vice President of Fidelity Investments Institutional Services Group (FIIS)/Fidelity Investments Institutional Operations Company, Inc. (FIIOC) Client Services (1998-2004).

Adrien E. Deberghes (42)

 

Year of Election or Appointment: 2008

Deputy Treasurer of Fidelity's Equity and High Income Funds. Mr. Deberghes is an employee of Fidelity Investments (2008-present). Previously, Mr. Deberghes served as Senior Vice President of Mutual Fund Administration at State Street Corporation (2007-2008), Senior Director of Mutual Fund Administration at Investors Bank & Trust (2005-2007), and Director of Finance for Dunkin' Brands (2000-2005).

John R. Hebble (51)

 

Year of Election or Appointment: 2009

Assistant Treasurer of Fidelity's Equity and High Income Funds. Mr. Hebble also serves as President and Treasurer of other Fidelity funds (2008-present) and is an employee of Fidelity Investments.

Paul M. Murphy (62)

 

Year of Election or Appointment: 2007

Assistant Treasurer of the Fidelity funds. Mr. Murphy is an employee of Fidelity Investments. Previously, Mr. Murphy served as Chief Financial Officer of the Fidelity funds (2005-2006), Vice President and Associate General Counsel of FMR (2007), and Senior Vice President of Fidelity Pricing and Cash Management Services (FPCMS) (1994-2007).

Gary W. Ryan (51)

 

Year of Election or Appointment: 2005

Assistant Treasurer of the Fidelity funds. Mr. Ryan is an employee of Fidelity Investments. Previously, Mr. Ryan served as Vice President of Fund Reporting in Fidelity Pricing and Cash Management Services (FPCMS) (1999-2005).

Annual Report

Distributions (Unaudited)

The Board of Trustees of Contrafund voted to pay shareholders of record at the opening of business on record date, the following distributions per share derived from capital gains realized from sales of portfolio securities, and dividends derived from net investment income:

 

Pay Date

Record Date

Dividends

Capital Gains

Class K

02/08/10

02/05/10

$.01

$.08

Class K designates 100% of the dividends distributed during the fiscal year as qualifying for the dividends-received deduction for corporate shareholders.

Class K designates 100% of the dividends distributed during the fiscal year as amounts which may be taken into account as a dividend for the purposes of the maximum rate under section 1(h)(11) of the Internal Revenue Code.

The fund will notify shareholders in January 2010 of amounts for use in preparing 2009 income tax returns.

Annual Report

Board Approval of Investment Advisory Contracts and Management Fees

Fidelity Contrafund

Each year, the Board of Trustees, including the Independent Trustees (together, the Board), votes on the renewal of the management contract and sub-advisory agreements (together, the Advisory Contracts) for the fund. The Board, assisted by the advice of fund counsel and Independent Trustees' counsel, requests and considers a broad range of information throughout the year.

The Board meets regularly and, acting directly and through its separate committees, requests and receives information concerning, and considers at each of its meetings factors that are relevant to, its annual consideration of the renewal of the fund's Advisory Contracts, including the services and support provided to the fund and its shareholders. The Board has established various standing committees, each composed of Independent Trustees with varying backgrounds, to which the Board has assigned specific subject matter responsibilities in order to enhance effective decision-making by the Board. Each committee has a written charter outlining the structure and purposes of the committee. The Board also meets as needed to consider matters specifically related to the Board's annual consideration of the renewal of Advisory Contracts.

At its July 2009 meeting, the Board of Trustees, including the Independent Trustees, unanimously determined to renew the fund's Advisory Contracts. In reaching its determination, the Board considered all factors it believed relevant, including (i) the nature, extent, and quality of the services to be provided to the fund and its shareholders (including the investment performance of the fund); (ii) the competitiveness of the fund's management fee and total expenses; (iii) the total costs of the services to be provided by and the profits to be realized by Fidelity from its relationship with the fund; (iv) the extent to which economies of scale would be realized as the fund grows; and (v) whether fee levels reflect these economies of scale, if any, for the benefit of fund shareholders.

In considering whether to renew the Advisory Contracts for the fund, the Board ultimately reached a determination, with the assistance of fund counsel and Independent Trustees' counsel and through the exercise of its business judgment, that the renewal of the Advisory Contracts and the compensation to be received by Fidelity under the management contract is consistent with Fidelity's fiduciary duty under applicable law. The Board's decision to renew the Advisory Contracts was not based on any single factor noted above, but rather was based on a comprehensive consideration of all the information provided to the Board at its meetings throughout the year. The Board, in reaching its determination to renew the Advisory Contracts, is aware that shareholders in the fund have a broad range of investment choices available to them, including a wide choice among mutual funds offered by competitors to Fidelity, and that the fund's shareholders, with the opportunity to review and weigh the disclosure provided by the fund in its prospectus and other public disclosures, have chosen to invest in this fund, managed by Fidelity.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Nature, Extent, and Quality of Services Provided. The Board considered staffing within the investment adviser, FMR, and the sub-advisers (together, the Investment Advisers), including the backgrounds of the fund's investment personnel and the fund's investment objective and discipline. The Independent Trustees also had discussions with senior management of Fidelity's investment operations and investment groups. The Board considered the structure of the portfolio manager compensation program and whether this structure provides appropriate incentives.

Resources Dedicated to Investment Management and Support Services. The Board reviewed the size, education, and experience of the Investment Advisers' investment staff, their use of technology, and the Investment Advisers' approach to recruiting, training, and retaining portfolio managers and other research, advisory, and management personnel. In response to last year's financial crisis, FMR took a number of actions intended to cut costs and improve efficiency without weakening the investment teams or resources. The Board noted that Fidelity's analysts have access to a variety of technological tools and market and securities data that enable them to perform both fundamental and quantitative analysis and to specialize in various disciplines. The Board considered Fidelity's extensive global research capabilities that enable the Investment Advisers to aggregate data from various sources in an effort to produce positive investment results. The Board also considered that Fidelity's portfolio managers and analysts have access to daily portfolio attribution that allows for monitoring of a fund's portfolio, as well as an electronic communication system that provides immediate real-time access to research concerning issuers and credit enhancers.

Shareholder and Administrative Services. The Board considered (i) the nature, extent, quality, and cost of advisory, administrative, distribution, and shareholder services performed by the Investment Advisers and their affiliates under the Advisory Contracts and under separate agreements covering transfer agency, pricing and bookkeeping, and securities lending services for the fund; (ii) the nature and extent of the Investment Advisers' supervision of third party service providers, principally custodians and subcustodians; and (iii) the resources devoted to, and the record of compliance with, the fund's compliance policies and procedures. The Board also reviewed the allocation of fund brokerage, including allocations to brokers affiliated with the Investment Advisers, the use of brokerage commissions to pay fund expenses, and the use of "soft" commission dollars to pay for research services.

The Board noted that the growth of fund assets across the complex allows Fidelity to reinvest in the development of services designed to enhance the value or convenience of the Fidelity funds as investment vehicles. These services include 24-hour access to account information and market information through phone representatives and over the Internet, and investor education materials and asset allocation tools.

Annual Report

Investment in a Large Fund Family. The Board considered the benefits to shareholders of investing in a Fidelity fund, including the benefits of investing in a fund that is part of a large family of funds offering a variety of investment disciplines and providing for a large variety of mutual fund investor services. For example, fund shareholders are offered the privilege of exchanging shares of the fund for shares of other Fidelity funds, as set forth in the fund's prospectus, without paying a sales charge. The Board noted that Fidelity has taken a number of actions over the previous year that benefited particular funds, including (i) dedicating additional resources to investment research and to restructure and broaden the focus of the investment research teams; (ii) bolstering the senior management team that oversees asset management; (iii) contractually agreeing to reduce the management fee on Fidelity U.S. Bond Index Fund; and (iv) expanding Class A and Class T load waiver categories to increase rollover retention opportunities and create consistent policies across the classes.

Investment Performance. The Board considered whether the fund has operated within its investment objective, as well as its record of compliance with its investment restrictions. It also reviewed the fund's absolute investment performance for Fidelity Contrafund (retail class), as well as the fund's relative investment performance for Fidelity Contrafund (retail class) measured against (i) a broad-based securities market index, and (ii) a custom peer group of mutual funds deemed appropriate by the Board over multiple periods. The following charts considered by the Board show, over the one-, three-, and five-year periods ended December 31, 2008, the cumulative total returns of Fidelity Contrafund (retail class) of the fund, the cumulative total returns of a broad-based securities market index ("benchmark"), and a range of cumulative total returns of a custom peer group of mutual funds defined by FMR based on categories assigned by Morningstar, Inc. (Class K of the fund had less than one year of performance as of December 31, 2008.) The box within each chart shows the 25th percentile return (bottom of box) and the 75th percentile return (top of box) of the peer group. Returns shown above the box are in the first quartile and returns shown below the box are in the fourth quartile. The percentage beaten number noted below each chart corresponds to the percentile box and represents the percentage of funds in the peer group whose performance was equal to or lower than that of Fidelity Contrafund (retail class) of the fund. The fund's custom peer group, defined by FMR, is a peer group that FMR believes provides a more meaningful performance comparison than the peer group assigned by Morningstar, Inc., which assigns mutual funds to categories based on their investment styles as measured by their underlying portfolio holdings.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Contrafund

fid5137

The Board reviewed the fund's relative investment performance against its peer group and stated that the performance of Fidelity Contrafund (retail class) of the fund was in the second quartile for the one-year period and the first quartile for the three- and five-year periods. The Board also stated that the investment performance of Fidelity Contrafund (retail class) of the fund compared favorably to its benchmark for the three- and five-year periods, although the fund's one-year cumulative total return was lower than its benchmark.

The Board also considered that the fund's management fee is subject to upward or downward adjustment depending upon whether, and to what extent, the fund's investment performance for the performance period exceeds, or is exceeded by, the record (over the same period) of a Board-approved performance adjustment index. The Board realizes that the performance adjustment provides FMR with a strong economic incentive to seek to achieve superior performance for the fund's shareholders and helps to more closely align the interests of FMR and the fund's shareholders.

The Board considered that FMR has taken steps to refocus and strengthen equity research, equity portfolio management, and compliance. The Board reviewed the year-to-date performance of Fidelity Contrafund (retail class) through May 31, 2009 and stated that it exceeded the fund's benchmark.

Based on its review, and giving particular weight to the nature and quality of the resources dedicated by the Investment Advisers to maintain and improve relative performance and factoring in the unprecedented market events in 2008, the Board concluded that the nature, extent, and quality of the services provided to the fund will benefit the fund's shareholders, particularly in light of the Board's view that the fund's shareholders benefit from investing in a fund that is part of a large family of funds offering a variety of investment disciplines and services.

Annual Report

Competitiveness of Management Fee and Total Fund Expenses. The Board considered the fund's management fee and total expenses compared to "mapped groups" of competitive funds and classes. Fidelity creates "mapped groups" by combining similar Lipper investment objective categories that have comparable management fee characteristics. Combining Lipper investment objective categories aids the Board's management fee and total expense comparisons by broadening the competitive group used for comparison and by reducing the number of universes to which various Fidelity funds are compared.

The Board considered two proprietary management fee comparisons for the 12-month periods shown in the chart below. The group of Lipper funds used by the Board for management fee comparisons is referred to below as the "Total Mapped Group." The Total Mapped Group comparison focuses on a fund's standing relative to the total universe of comparable funds available to investors, in terms of gross management fees before expense reimbursements or caps, and without giving effect to the fund's performance adjustment. "TMG %" represents the percentage of funds in the Total Mapped Group that had management fees that were lower than the fund's. For example, a TMG % of 11% means that 89% of the funds in the Total Mapped Group had higher management fees than the fund. The "Asset-Size Peer Group" (ASPG) comparison focuses on a fund's standing relative to non-Fidelity funds similar in size to the fund within the Total Mapped Group. The ASPG represents at least 15% of the funds in the Total Mapped Group with comparable asset size and management fee characteristics, subject to a minimum of 50 funds (or all funds in the Total Mapped Group if fewer than 50). Additional information, such as the ASPG quartile in which the fund's management fee ranked and the impact of the fund's performance adjustment, is also included in the chart and considered by the Board.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

Fidelity Contrafund

fid5139

The Board noted that the fund's management fee ranked below the median of its Total Mapped Group and below the median of its ASPG for 2008. The Board also noted the effect of the fund's positive performance adjustment on the fund's management fee ranking. The Board noted that the performance adjustment for each year represents calculations for performance periods that differ from the periods shown in the performance charts above.

Based on its review, the Board concluded that the fund's management fee was fair and reasonable in light of the services that the fund receives and the other factors considered.

In its review of each class's total expenses, the Board considered the fund's management fee as well as other fund or class expenses, as applicable, such as transfer agent fees, pricing and bookkeeping fees, and custodial, legal, and audit fees. The Board also noted the effects of any waivers and reimbursements on fees and expenses, as well as the impact of the fund's performance adjustment. As part of its review, the Board also considered current and historical total expenses of each class of the fund compared to competitive fund median expenses. Each class of the fund is compared to those funds and classes in the Total Mapped Group (used by the Board for management fee comparisons) that have a similar sales load structure.

The Board noted that the total expenses of each class ranked below its competitive median for the period.

In its review of total expenses, the Board also considered Fidelity fee structures and other information on clients that FMR and its affiliates service in other competitive markets, such as other mutual funds advised or subadvised by FMR or its affiliates, pension plan clients, and other institutional clients.

Annual Report

Based on its review, the Board concluded that the total expenses of each class of the fund were reasonable in light of the services that the fund and its shareholders receive and the other factors considered.

Costs of the Services and Profitability. The Board considered the revenues earned and the expenses incurred by Fidelity in conducting the business of developing, marketing, distributing, managing, administering and servicing the fund and its shareholders. The Board also considered the level of Fidelity's profits in respect of all the Fidelity funds.

On an annual basis, FMR presents to the Board Fidelity's profitability for the fund. Fidelity calculates the profitability for each fund, as well as aggregate profitability for groups of Fidelity funds and all Fidelity funds, using a series of detailed revenue and cost allocation methodologies which originate with the audited books and records of Fidelity. The Audit Committee of the Board reviews any significant changes from the prior year's methodologies.

PricewaterhouseCoopers LLP (PwC), independent registered public accounting firm and auditor to Fidelity and certain Fidelity funds, has been engaged annually by the Board as part of the Board's assessment of Fidelity's profitability analysis. PwC's engagement includes the review and assessment of Fidelity's methodologies used in determining the revenues and expenses attributable to Fidelity's mutual fund business, and completion of agreed-upon procedures surrounding the mathematical accuracy of fund profitability and its conformity to allocation methodologies. After considering PwC's reports issued under the engagement and information provided by Fidelity, the Board believes that while other allocation methods may also be reasonable, Fidelity's profitability methodologies are reasonable in all material respects.

The Board has also reviewed Fidelity's non-fund businesses and any fall-out benefits related to the mutual fund business as well as cases where Fidelity's affiliates may benefit from or be related to the fund's business.

The Board considered the costs of the services provided by and the profits realized by Fidelity in connection with the operation of the fund and determined that the amount of profit is a fair entrepreneurial profit for the management of the fund.

Economies of Scale. The Board considered whether there have been economies of scale in respect of the management of the Fidelity funds, whether the Fidelity funds (including the fund) have appropriately benefited from any such economies of scale, and whether there is potential for realization of any further economies of scale. The Board considered the extent to which the fund will benefit from economies of scale through increased services to the fund, through waivers or reimbursements, or through fee or expense reductions.

Annual Report

Board Approval of Investment Advisory Contracts and
Management Fees - continued

In February 2009, the Board created an Ad Hoc Committee (the "Committee") to analyze economies of scale. The Committee was formed to consider whether FMR attains economies of scale in respect of the management and servicing of the Fidelity funds, whether the Fidelity funds have appropriately benefited from such economies of scale, and whether there is potential for realization of any further economies of scale.

The Board recognized that the fund's management contract incorporates a "group fee" structure, which provides for lower group fee rates as total fund assets under FMR's management increase, and for higher group fee rates as total fund assets under FMR's management decrease. FMR determines the group fee rates based on a tiered asset "breakpoint" schedule. The Board considered that the group fee is designed to deliver the benefits of economies of scale to fund shareholders when total fund assets increase, even if assets of any particular fund are unchanged or have declined, because some portion of Fidelity's costs are attributable to services provided to all Fidelity funds, and all funds benefit if those costs can be allocated among more assets. The Board concluded that, given the group fee structure, fund shareholders will achieve a certain level of economies of scale as assets under FMR's management increase at the fund complex level, regardless of whether Fidelity achieves any such economies of scale.

The Board concluded, considering the findings of the Committee, that any potential economies of scale are being shared between fund shareholders and Fidelity in an appropriate manner.

Additional Information Requested by the Board. In order to develop fully the factual basis for consideration of the Fidelity funds' Advisory Contracts, the Board requested and received additional information on certain topics, including (i) fund performance trends, actions to be taken by FMR to improve certain funds' overall performance and Fidelity's long-term strategies for certain funds; (ii) portfolio manager changes that have occurred during the past year; (iii) Fidelity's compensation structure for portfolio managers and key personnel, including performance benchmarks used by Fidelity in evaluating incentive compensation for portfolio managers and research analysts; (iv) the structure and process of equity research and actions taken by FMR to improve the quality of research; (v) the selection of and compensation paid by FMR to fund sub-advisers; (vi) Fidelity's fee structures and rationale for recommending different fees among categories of funds; (vii) the rationale for any differences between fund fee structures and fee structures in place for other Fidelity clients; (viii) Fidelity's rationale for recommending which funds should have a performance adjustment component as part of their management fees; and (ix) explanations for the relative total expenses borne by certain funds and classes, total expense competitive trends, and actions that might be taken by FMR to reduce total expenses for certain funds and classes.

Annual Report

Based on its evaluation of all of the conclusions noted above, and after considering all material factors, the Board ultimately concluded that the advisory fee structures are fair and reasonable, and that the fund's Advisory Contracts should be renewed.

Annual Report

Investment Adviser

Fidelity Management & Research Company

Boston, MA

Investment Sub-Advisers

FMR Co., Inc.

Fidelity Management & Research
(U.K.) Inc.

Fidelity Management & Research
(Hong Kong) Limited

Fidelity Management & Research
(Japan) Inc.

Fidelity Research & Analysis Company

FIL Investments (Japan) Limited

FIL Investment Advisors

FIL Investment Advisors
(U.K.) Ltd.

General Distributor

Fidelity Distributors Corporation

Boston, MA

Transfer and Service Agents

Fidelity Investments Institutional
Operations Company, Inc.

Boston, MA

Fidelity Service Company, Inc. Boston, MA

Custodian

Brown Brothers Harriman & Co.

Boston, MA

CON-K-UANN-0210
1.863186.101

fid5141

Item 2. Code of Ethics

As of the end of the period, December 31, 2009, Fidelity Contrafund (the trust) has adopted a code of ethics, as defined in Item 2 of Form N-CSR, that applies to its President and Treasurer and its Chief Financial Officer. A copy of the code of ethics is filed as an exhibit to this Form N-CSR.

Item 3. Audit Committee Financial Expert

The Board of Trustees of the trust has determined that Joseph Mauriello is an audit committee financial expert, as defined in Item 3 of Form N-CSR.   Mr. Mauriello is independent for purposes of Item 3 of Form N-CSR.  

Item 4. Principal Accountant Fees and Services

Fees and Services

The following table presents fees billed by PricewaterhouseCoopers LLP ("PwC") in each of the last two fiscal years for services rendered to Fidelity Advisor New Insights Fund and Fidelity Contrafund (the "Funds"):

Services Billed by PwC

December 31, 2009 FeesA

 

Audit Fees

Audit-Related Fees

Tax Fees

All Other Fees

Fidelity Advisor New Insights Fund

$69,000

$-

$4,100

$8,700

Fidelity Contrafund

$232,000

$-

$4,100

$42,200

December 31, 2008 FeesA

 

Audit Fees

Audit-Related Fees

Tax Fees

All Other Fees

Fidelity Advisor New Insights Fund

$63,000

$-

$3,900

$9,300

Fidelity Contrafund

$237,000

$-

$4,700

$56,300

A Amounts may reflect rounding.

The following table presents fees billed by PwC that were required to be approved by the Audit Committee for services that relate directly to the operations and financial reporting of the Funds and that are rendered on behalf of Fidelity Management & Research Company ("FMR") and entities controlling, controlled by, or under common control with FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser) that provide ongoing services to the Funds ("Fund Service Providers"):

Services Billed by PwC

 

December 31, 2009A

December 31, 2008A

Audit-Related Fees

$2,655,000

$2,530,000B

Tax Fees

$-

$2,000

All Other Fees

$-

$-B

A Amounts may reflect rounding.

B Reflects current period presentation.

"Audit-Related Fees" represent fees billed for assurance and related services that are reasonably related to the performance of the fund audit or the review of the fund's financial statements and that are not reported under Audit Fees.

"Tax Fees" represent fees billed for tax compliance, tax advice or tax planning that relate directly to the operations and financial reporting of the fund.

"All Other Fees" represent fees billed for assurance services provided to the fund or Fund Service Provider that relate directly to the operations and financial reporting of the fund, excluding those services that are reported under Audit Fees, Audit-Related Fees or Tax Fees.

Assurance services must be performed by an independent public accountant.

* * *

The aggregate non-audit fees billed by PwC for services rendered to the Funds, FMR (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any Fund Service Provider for each of the last two fiscal years of the Funds are as follows:

Billed By

December 31, 2009 A

December 31, 2008 A,B

PwC

$4,600,000

$3,160,000

A Amounts may reflect rounding.

B Reflects current period presentation.

The trust's Audit Committee has considered non-audit services that were not pre-approved that were provided by PwC to Fund Service Providers to be compatible with maintaining the independence of PwC in its audit of the Funds, taking into account representations from PwC, in accordance with Public Company Accounting Oversight Board rules, regarding its independence from the Funds and their related entities and FMR's review of the appropriateness and permissibility under applicable law of such non-audit services prior to their provision to the Fund Service Providers.

Audit Committee Pre-Approval Policies and Procedures

The trust's Audit Committee must pre-approve all audit and non-audit services provided by a fund's independent registered public accounting firm relating to the operations or financial reporting of the fund. Prior to the commencement of any audit or non-audit services to a fund, the Audit Committee reviews the services to determine whether they are appropriate and permissible under applicable law.

The Audit Committee has adopted policies and procedures to, among other purposes, provide a framework for the Committee's consideration of non-audit services by the audit firms that audit the Fidelity funds. The policies and procedures require that any non-audit service provided by a fund audit firm to a Fidelity fund and any non-audit service provided by a fund auditor to a Fund Service Provider that relates directly to the operations and financial reporting of a Fidelity fund ("Covered Service") are subject to approval by the Audit Committee before such service is provided.

All Covered Services must be approved in advance of provision of the service either: (i) by formal resolution of the Audit Committee, or (ii) by oral or written approval of the service by the Chair of the Audit Committee (or if the Chair is unavailable, such other member of the Audit Committee as may be designated by the Chair to act in the Chair's absence). The approval contemplated by (ii) above is permitted where the Treasurer determines that action on such an engagement is necessary before the next meeting of the Audit Committee.

Non-audit services provided by a fund audit firm to a Fund Service Provider that do not relate directly to the operations and financial reporting of a Fidelity fund are reported to the Audit Committee on a periodic basis.

Non-Audit Services Approved Pursuant to Rule 2-01(c)(7)(i)(C) and (ii) of Regulation S-X ("De Minimis Exception")

There were no non-audit services approved or required to be approved by the Audit Committee pursuant to the De Minimis Exception during the Funds' last two fiscal years relating to services provided to (i) the Funds or (ii) any Fund Service Provider that relate directly to the operations and financial reporting of the Funds.

Item 5. Audit Committee of Listed Registrants

Not applicable.

Item 6. Investments

(a) Not applicable.

(b) Not applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies

Not applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies

Not applicable.

Item 9. Purchase of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers

Not applicable.

Item 10. Submission of Matters to a Vote of Security Holders

There were no material changes to the procedures by which shareholders may recommend nominees to the trust's Board of Trustees.

Item 11. Controls and Procedures

(a)(i) The President and Treasurer and the Chief Financial Officer have concluded that the trust's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act) provide reasonable assurances that material information relating to the trust is made known to them by the appropriate persons, based on their evaluation of these controls and procedures as of a date within 90 days of the filing date of this report.

(a)(ii) There was no change in the trust's internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the trust's internal control over financial reporting.

Item 12. Exhibits

(a)

(1)

Code of Ethics pursuant to Item 2 of Form N-CSR is filed and attached hereto as EX-99.CODE ETH.

(a)

(2)

Certification pursuant to Rule 30a-2(a) under the Investment Company Act of 1940 (17 CFR 270.30a-2(a)) is filed and attached hereto as Exhibit 99.CERT.

(a)

(3)

Not applicable.

(b)

 

Certification pursuant to Rule 30a-2(b) under the Investment Company Act of 1940 (17 CFR 270.30a-2(b)) is furnished and attached hereto as Exhibit 99.906CERT.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Fidelity Contrafund

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

February 25, 2010

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By:

/s/Kenneth B. Robins

 

Kenneth B. Robins

 

President and Treasurer

 

 

Date:

February 25, 2010

By:

/s/Christine Reynolds

 

Christine Reynolds

 

Chief Financial Officer

 

 

Date:

February 25, 2010

EX-99.CERT 2 ex99.htm

Exhibit EX-99.CERT

I, Kenneth B. Robins, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Contrafund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 25, 2010

/s/Kenneth B. Robins

Kenneth B. Robins

President and Treasurer

I, Christine Reynolds, certify that:

1. I have reviewed this report on Form N-CSR of Fidelity Contrafund;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based upon such evaluation; and

d. Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: February 25, 2010

/s/Christine Reynolds

Christine Reynolds

Chief Financial Officer

EX-99.906 CERT 3 ex906.htm

Exhibit EX-99.906CERT

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (subsections (a) and (b) of section 1350, chapter 63 of title 18, United States Code)

In connection with the attached Report of Fidelity Contrafund (the "Trust") on Form N-CSR to be filed with the Securities and Exchange Commission (the "Report"), each of the undersigned officers of the Trust does hereby certify that, to the best of such officer's knowledge:

1. The Report fully complies with the requirements of 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust as of, and for, the periods presented in the Report.

Dated: February 25, 2010

/s/Kenneth B. Robins

Kenneth B. Robins

President and Treasurer

Dated: February 25, 2010

/s/Christine Reynolds

Christine Reynolds

Chief Financial Officer

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the Trust and will be retained by the Trust and furnished to the Securities and Exchange Commission or its staff upon request.

EX-99.CODE ETH 4 ex99code.htm

EXHIBIT EX-99.CODE ETH

FIDELITY FUNDS' CODE OF ETHICS FOR

PRESIDENT, TREASURER AND PRINCIPAL ACCOUNTING OFFICER

I. Purposes of the Code/Covered Officers

This document constitutes the Code of Ethics ("the Code") adopted by the Fidelity Funds (the "Funds") pursuant to the provisions of Rule 30b2-1(a) under the Investment Company Act of 1940), which Rule implements Sections 406 of the Sarbanes-Oxley Act of 2002 with respect to registered investment companies. The Code applies to the Fidelity Funds' President and Treasurer, and Chief Financial Officer (the "Covered Officers"). Fidelity's Ethics Office, a part of Fidelity Enterprise Compliance within Risk Oversight, administers the Code.

The purposes of the Code are to deter wrongdoing and to promote, on the part of the Covered Officers:

  • honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;
  • full, fair, accurate, timely and understandable disclosure in reports and documents that the Fidelity Funds submit to the Securities and Exchange Commission ("SEC"), and in other public communications by a Fidelity Fund;
  • compliance with applicable laws and governmental rules and regulations;
  • the prompt internal reporting to an appropriate person or persons identified in the Code of violations of the Code; and
  • accountability for adherence to the Code.
  • Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II. Covered Officers Should Handle Ethically

Actual and Apparent Conflicts of Interest

Overview. A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, the Fidelity Funds. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Fidelity Funds.

Certain conflicts of interest arise out of the relationships between Covered Officers and the Fidelity Funds and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with a Fidelity Fund because of their status as "affiliated persons" of the Fund. Separate compliance programs and procedures of the Fidelity Funds, Fidelity Management & Research Company ("FMR") and the other Fidelity companies are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company) of which the Covered Officers are also officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Fidelity Funds, FMR or another Fidelity company), be involved in establishing policies and implementing decisions that have different effects on the Fidelity Funds, FMR and other Fidelity companies. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Fidelity Funds and FMR (or another Fidelity company), and is consistent with the performance by the Covered Officers of their duties as officers of the Fidelity Funds. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, it is recognized by the Funds' Board of Trustees ("Board") that the Covered Officers also may be officers or employees of one or more other Fidelity Funds covered by this Code.

Other conflicts of interest are covered by the Code, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of a Fidelity Fund.

* * *

Each Covered Officer must:

  • not use his or her personal influence or personal relationships improperly to influence investment decisions or financial reporting by any Fidelity Fund whereby the Covered Officer would benefit personally to the detriment of any Fidelity Fund;
  • not cause a Fidelity Fund to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit of the Fidelity Fund;
  • not engage in any outside business activity, including serving as a director or trustee, that prevents the Covered Officer from devoting appropriate time and attention to the Covered Officer's responsibilities with the Fidelity Funds;
  • not have a consulting or employment relationship with any of the Fidelity Funds' service providers that are not affiliated with Fidelity; and
  • not retaliate against any employee or Covered Officer for reports of actual or potential misconduct, which are made in good faith.

With respect to other fact patterns, if a Covered Officer is in doubt, other potential conflict of interest situations should be described immediately to the Fidelity Ethics Office for resolution. Similarly, any questions a Covered Officer has generally regarding the application or interpretation of the Code should be directed to the Fidelity Ethics Office immediately.

III. Disclosure and Compliance

  • Each Covered Officer should familiarize himself with the disclosure requirements generally applicable to the Fidelity Funds.
  • Each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about any Fidelity Fund to others, whether within or outside Fidelity, including to the Board and auditors, and to governmental regulators and self-regulatory organizations;
  • Each Covered Officer should, to the extent appropriate within his area of responsibility, consult with other officers and employees of the Fidelity Funds, FMR and the Fidelity service providers, and with the Board's Compliance Committee, with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Fidelity Funds file with, or submit to, the SEC and in other public communications made by the Fidelity Funds; and
  • It is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV. Reporting and Accountability

Each Covered Officer must:

  • upon receipt of the Code, and annually thereafter, submit to the Fidelity Ethics Office an acknowledgement stating that he or she has received, read, and understands the Code; and
  • notify the Fidelity Ethics Office promptly if he or she knows of any violation of the Code. Failure to do so is itself a violation of this Code.

The Fidelity Ethics Office shall take all action it considers appropriate to investigate any actual or potential violations reported to it. Upon completion of the investigation, if necessary, the matter will be reviewed with senior management or other appropriate parties, and a determination will be made as to whether any action should be taken as detailed below. The Covered Officer will be informed of any action determined to be appropriate. The Fidelity Ethics Office will inform the Ethics Oversight Committee of all Code violations and actions taken in response. Without implied limitation, appropriate remedial, disciplinary or preventive action may include a written warning, a letter of censure, suspension, dismissal or, in the event of criminal or other serious violations of law, notification of the SEC or other appropriate law enforcement authorities. Additionally, other legal remedies may be pursued.

The policies and procedures described in the Code do not create any obligations to any person or entity other than the Fidelity Funds. The Code is intended solely for the internal use by the Fidelity Funds and does not constitute a promise, contract or an admission by or on behalf of any Fidelity Fund as to any fact, circumstance, or legal conclusion. The Fidelity Funds, the Fidelity companies and the Fidelity Ethics Officer retain the discretion to decide whether the Code applies to a specific situation, and how it should be interpreted.

V. Oversight

Material violations of this Code will be reported promptly by FMR to the Board's Compliance Committee. In addition, at least once each year, FMR will provide a written report to the Board, which describes any issues arising under the Code since the last report to the Board, including, but not limited to, information about material violations of the Code and action taken in response to the material violations.

VI. Other Policies and Procedures

This Code shall be the sole code of ethics adopted by the Fidelity Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Other Fidelity policies or procedures that cover the behavior or activities of Covered Officers are separate requirements applying to the Covered Officers (and others), and are not part of this Code.

VII. Amendments

Any material amendments or changes to this Code must be approved or ratified by a majority vote of the Board, including a majority of the Trustees who are not interested persons of the Fidelity Funds.

VIII. Records and Confidentiality

Records of any violation of the Code and of the actions taken as a result of such violations will be kept by the Fidelity Ethics Office. All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Fidelity Ethics Office, the Ethics Oversight Committee, the Board, appropriate personnel at the relevant Fidelity company or companies and the legal counsel of any or all of the foregoing.

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-----END PRIVACY-ENHANCED MESSAGE-----