-----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, Dg4jQZpGlUPVUXVnQfhtBG80DgTS4j6a7Q7yPrrQ2VNLRtDiEhFfu4HIh9en+yMJ oILUejWh40ZFTaLB8BlZqQ== 0000917951-97-000015.txt : 19970822 0000917951-97-000015.hdr.sgml : 19970822 ACCESSION NUMBER: 0000917951-97-000015 CONFORMED SUBMISSION TYPE: N-30D PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970821 SROS: NONE FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY CONTRAFUND CENTRAL INDEX KEY: 0000024238 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 046056833 STATE OF INCORPORATION: MA FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-30D SEC ACT: 1940 Act SEC FILE NUMBER: 811-01400 FILM NUMBER: 97667722 BUSINESS ADDRESS: STREET 1: FIDELITY INVESTMENTS COMPANY STREET 2: 82 DEVONSHIRE STREET MAIL ZONE ZZ2 CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: (617)439-1220 MAIL ADDRESS: STREET 1: 82 DEVONSHIRE STREET STREET 2: MAIL ZONE ZH1 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 N-30D 1 FIDELITY (registered trademark) CONTRAFUND SEMIANNUAL REPORT JUNE 30, 1997 CONTENTS PRESIDENT'S MESSAGE 3 Ned Johnson on investing strategies. PERFORMANCE 4 How the fund has done over time. FUND TALK 6 The manager's review of fund performance, strategy and outlook. INVESTMENT CHANGES 9 A summary of major shifts in the fund's investments over the past six months. INVESTMENTS 10 A complete list of the fund's investments with their market values. FINANCIAL STATEMENTS 37 Statements of assets and liabilities, operations, and changes in net assets, as well as financial highlights. NOTES 41 Notes to the financial statements. THIS REPORT AND THE FINANCIAL STATEMENTS CONTAINED HEREIN ARE SUBMITTED FOR THE GENERAL INFORMATION OF THE SHAREHOLDERS OF THE FUND. THIS REPORT IS NOT AUTHORIZED FOR DISTRIBUTION TO PROSPECTIVE INVESTORS IN THE FUND UNLESS PRECEDED OR ACCOMPANIED BY AN EFFECTIVE PROSPECTUS. MUTUAL FUND SHARES ARE NOT DEPOSITS OR OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE NOT INSURED BY THE FDIC, FEDERAL RESERVE BOARD OR ANY OTHER AGENCY, AND ARE SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL AMOUNT INVESTED. NEITHER THE FUND NOR FIDELITY DISTRIBUTORS CORPORATION IS A BANK. FOR MORE INFORMATION ON ANY FIDELITY FUND, INCLUDING CHARGES AND EXPENSES, CALL 1-800-544-8888 FOR A FREE PROSPECTUS. READ IT CAREFULLY BEFORE YOU INVEST OR SEND MONEY. To reduce expenses and demonstrate respect for our environment, we have initiated a project through which we will begin eliminating duplicate copies of most financial reports and prospectuses to most households, even if they have more than one account in the fund. If additional copies of financial reports, prospectuses or historical account information are needed, please call 1-800-544-6666. PRESIDENT'S MESSAGE (photo_of_Edward_C_Johnson_3d) DEAR SHAREHOLDER: Through the first six months of 1997, stock and bond markets experienced the kind of short-term volatility that can affect them periodically. The stock market rebounded strongly from its early spring correction to continue on its record-setting pace, as seen by the roughly 20% year-to-date gain by the Standard & Poor's 500 Index. The bond market posted moderate returns over the first half of the year, as positive news on the inflation front helped soften the effects of a hike in short-term interest rates by the Federal Reserve Board in late March. While it's impossible to predict the future direction of the markets with any degree of certainty, there are certain basic principles that can help investors plan for their future needs. First, investors are encouraged to take a long-term view of their portfolios. If you can afford to leave your money invested through the inevitable up and down cycles of the financial markets, you will greatly reduce your vulnerability to any single decline. We know from experience, for example, that stock prices have gone up over longer periods of time, have significantly outperformed other types of investments and have stayed ahead of inflation. Second, you can further manage your investing risk through diversification. A stock mutual fund, for instance, is already diversified, because it invests in many different companies. You can increase your diversification further by investing in a number of different stock funds, or in such other investment categories as bonds. If you have a short investment time horizon, you might want to consider moving some of your investment into a money market fund, which seeks income and a stable share price by investing in high-quality, short-term investments. Of course, it's important to remember that there is no assurance that a money market fund will achieve its goal of maintaining a stable net asset value of $1.00 per share, and that these types of funds are neither insured nor guaranteed by any agency of the U.S. government. Finally, no matter what your time horizon or portfolio diversity, it makes good sense to follow a regular investment plan, investing a certain amount of money in a fund at the same time each month or quarter and periodically reviewing your overall portfolio. By doing so, you won't get caught up in the excitement of a rapidly rising market, nor will you buy all your shares at market highs. While this strategy - known as dollar cost averaging - won't assure a profit or protect you from a loss in a declining market, it should help you lower the average cost of your purchases. If you have questions, please call us at 1-800-544-8888. We are available 24 hours a day, seven days a week to provide you the information you need to make the investments that are right for you. Best regards, Edward C. Johnson 3d PERFORMANCE: THE BOTTOM LINE There are several ways to evaluate a fund's historical performance. You can look at the total percentage change in value, the average annual percentage change or the growth of a hypothetical $10,000 investment. Total return reflects the change in the value of an investment, assuming reinvestment of the fund's dividend income and capital gains (the profits earned upon the sale of securities that have grown in value). CUMULATIVE TOTAL RETURNS PERIODS ENDED JUNE 30, 1997 PAST 6 PAST 1 PAST 5 PAST 10 MONTHS YEAR YEARS YEARS Fidelity Contrafund 11.22% 24.31% 149.72% 443.88% Fidelity Contrafund (incl. 3% sales 7.88% 20.58% 142.22% 427.57% charge) S&P 500(registered trademark) 20.61% 34.70% 146.59% 292.69% Growth Funds Average 14.28% 23.96% 121.62% 243.77% CUMULATIVE TOTAL RETURNS show the fund's performance in percentage terms over a set period - in this case, six months, one year, five years or 10 years. For example, if you had invested $1,000 in a fund that had a 5% return over the past year, the value of your investment would be $1,050. You can compare the fund's returns to the performance of the Standard & Poor's 500 Index - a widely recognized, unmanaged index of common stocks. To measure how the fund's performance stacked up against its peers, you can compare it to the average growth fund, which reflects the performance of mutual funds with similar objectives tracked by Lipper Analytical Services, Inc. The past six months average represents a peer group of 840 mutual funds. These benchmarks reflect reinvestment of dividends and capital gains, if any, and exclude the effect of sales charges. AVERAGE ANNUAL TOTAL RETURNS PERIODS ENDED JUNE 30, 1997 PAST 1 PAST 5 PAST 10 YEAR YEARS YEARS Fidelity Contrafund 24.31% 20.09% 18.45% Fidelity Contrafund (incl. 3% sales charge) 20.58% 19.36% 18.09% S&P 500 34.70% 19.78% 14.64% Growth Funds Average 23.96% 16.90% 12.73% AVERAGE ANNUAL TOTAL RETURNS take the fund's cumulative return and show you what would have happened if the fund had performed at a constant rate each year. (Note: Lipper calculates average annual total returns by annualizing each fund's total return, then taking an arithmetic average. This may produce a slightly different figure than that obtained by averaging the cumulative total returns and annualizing the result.) $10,000 OVER 10 YEARS 1987/06/30 9700.00 10000.00 1987/07/31 10173.34 10507.00 1987/08/31 10543.78 10898.91 1987/09/30 10331.12 10660.22 1987/10/31 7347.03 8364.01 1987/11/30 6942.29 7674.82 1987/12/31 7353.89 8258.87 1988/01/31 7827.23 8606.57 1988/02/29 8183.95 9007.64 1988/03/31 8197.67 8729.30 1988/04/30 8362.31 8826.20 1988/05/31 8245.69 8902.98 1988/06/30 8643.56 9311.63 1988/07/31 8705.30 9276.25 1988/08/31 8513.22 8960.85 1988/09/30 8863.08 9342.59 1988/10/31 9096.32 9602.31 1988/11/30 9027.72 9465.00 1988/12/31 8899.84 9630.63 1989/01/31 9490.82 10335.60 1989/02/28 9434.53 10078.24 1989/03/31 9934.05 10313.06 1989/04/30 10574.28 10848.31 1989/05/31 11123.04 11287.67 1989/06/30 11052.69 11223.33 1989/07/31 12065.79 12236.79 1989/08/31 12410.53 12476.64 1989/09/30 12649.73 12425.48 1989/10/31 12269.82 12137.21 1989/11/30 12551.24 12384.81 1989/12/31 12740.29 12682.05 1990/01/31 12064.55 11831.08 1990/02/28 12315.10 11983.70 1990/03/31 12580.84 12301.27 1990/04/30 12451.77 11993.74 1990/05/31 13628.61 13163.13 1990/06/30 13803.24 13073.62 1990/07/31 13545.10 13031.78 1990/08/31 12489.73 11853.71 1990/09/30 11965.85 11276.43 1990/10/31 12026.59 11227.94 1990/11/30 12740.29 11953.27 1990/12/31 13241.75 12286.77 1991/01/31 14531.58 12822.47 1991/02/28 15630.61 13739.28 1991/03/31 16546.46 14071.77 1991/04/30 16638.05 14105.54 1991/05/31 17698.92 14714.90 1991/06/30 16706.74 14040.96 1991/07/31 17889.72 14695.26 1991/08/31 18790.31 15043.54 1991/09/30 18843.74 14792.31 1991/10/31 19385.62 14990.53 1991/11/30 18362.91 14386.41 1991/12/31 20513.92 16032.22 1992/01/31 21098.89 15734.02 1992/02/29 21783.57 15938.56 1992/03/31 21192.39 15627.76 1992/04/30 21422.29 16087.22 1992/05/31 21652.20 16166.04 1992/06/30 21126.70 15925.17 1992/07/31 21660.41 16576.51 1992/08/31 21258.08 16236.69 1992/09/30 21619.36 16428.28 1992/10/31 22103.80 16485.78 1992/11/30 23171.22 17047.95 1992/12/31 23774.39 17257.64 1993/01/31 24527.34 17402.60 1993/02/28 24689.15 17639.28 1993/03/31 25868.99 18011.46 1993/04/30 26043.78 17575.59 1993/05/31 27075.04 18046.61 1993/06/30 27083.78 18098.95 1993/07/31 27380.93 18026.55 1993/08/31 28709.33 18709.76 1993/09/30 28770.51 18565.69 1993/10/31 29023.96 18950.00 1993/11/30 27931.52 18769.98 1993/12/31 28868.33 18997.10 1994/01/31 29776.32 19643.00 1994/02/28 29562.68 19110.67 1994/03/31 28393.75 18277.45 1994/04/30 28742.54 18511.40 1994/05/31 28582.28 18814.98 1994/06/30 27479.34 18354.02 1994/07/31 28035.53 18956.03 1994/08/31 29204.46 19733.23 1994/09/30 28817.96 19249.76 1994/10/31 29638.09 19682.88 1994/11/30 28290.05 18966.03 1994/12/31 28544.58 19247.30 1995/01/31 28082.66 19746.38 1995/02/28 29213.89 20515.90 1995/03/31 30279.12 21121.32 1995/04/30 31646.02 21743.34 1995/05/31 32409.60 22612.42 1995/06/30 34464.65 23137.71 1995/07/31 37104.18 23904.96 1995/08/31 37594.38 23964.96 1995/09/30 38282.54 24976.28 1995/10/31 37584.95 24887.12 1995/11/30 38574.77 25979.66 1995/12/31 38900.57 26480.03 1996/01/31 39780.49 27381.41 1996/02/29 40023.01 27635.23 1996/03/31 41133.86 27901.36 1996/04/30 42406.49 28312.63 1996/05/31 42762.39 29042.81 1996/06/30 42438.85 29153.46 1996/07/31 40454.41 27865.46 1996/08/31 41996.66 28453.15 1996/09/30 43722.26 30054.49 1996/10/31 45124.30 30883.39 1996/11/30 47745.05 33217.87 1996/12/31 47434.16 32559.82 1997/01/31 49279.76 34594.16 1997/02/28 47985.57 34865.38 1997/03/31 46738.45 33432.76 1997/04/30 47791.07 35428.69 1997/05/31 50662.88 37585.59 1997/06/30 52756.67 39269.43 $10,000 OVER 10 YEARS: Let's say hypothetically that $10,000 was invested in Fidelity Contrafund on June 30, 1987, and the current maximum 3% sales charge was paid. As the chart shows, by June 30, 1997, the value of the investment would have grown to $52,757 - a 427.57% increase on the initial investment. For comparison, look at how the S&P 500 did over the same period. With dividends and capital gains, if any, reinvested, the same $10,000 investment would have grown to $39,269 - a 292.69% increase. UNDERSTANDING PERFORMANCE How a fund did yesterday is no guarantee of how it will do tomorrow. The stock market, for example, has a history of long-term growth and short-term volatility. In turn, the share price and return of a fund that invests in stocks will vary. That means if you sell your shares during a market downturn, you might lose money. But if you can ride out the market's ups and downs, you may have a gain. (checkmark) FUND TALK: THE MANAGER'S OVERVIEW An interview with Will Danoff, Portfolio Manager of Fidelity Contrafund Q. HOW DID THE FUND PERFORM, WILL? A. Results were disappointing. For the six months that ended June 30, 1997, the fund returned 11.22%. This was worse than the 14.28% return for the growth funds average, as tracked by Lipper Analytical Services, and the 20.61% return of the Standard & Poor's 500 Index over the same period. From a 12-month perspective, the fund returned 24.31% as of June 30, 1997, while the peer group and index returned 23.96% and 34.70%, respectively. As a fellow shareholder of the fund, I consider this performance to be unsatisfactory and I'm working as hard as ever with Fidelity's research staff to find stocks that can help boost second-half performance. Q. WHAT FACTORS WERE BEHIND THE FUND'S UNDERPERFORMANCE RELATIVE TO THE S&P 500? A. A primary reason was the narrowness of the market. By that I mean that the market's advance was concentrated chiefly among stocks of the largest companies in the index. To illustrate, shares of the 100 largest S&P 500 stocks appreciated approximately 25% over the past six months, while the 100 smallest stocks in the index rose only around 15%. This phenomenon hurt the fund, which tends to emphasize small- and mid-sized companies. Q. WHAT TRIGGERED THE STRONG RUN BY LARGE-CAPS? A. Many of the big stocks continued to appreciate sharply due to increases in their price-to-earnings (P/E) ratios - a measure of how much an investor pays for each dollar of a company's earnings. This occurred as inflation remained low and the country's budget deficit fell, both factors that produced lower interest rate levels. Additionally, favorable economic conditions and an emphasis on increasing efficiency generated strong corporate earnings growth. The high P/E's we've seen reflect the market's great expectations on two fronts: that inflation - and interest rates - will remain low and that earnings growth will stay strong. This is a hard balance to maintain, but the economy has succeeded thus far. Q. WERE THERE ANY OTHER SPECIFIC FACTORS THAT HAD A NEGATIVE EFFECT ON THE FUND'S RETURN? A. The fund's underweighting in health care stocks relative to the index - health care stocks make up around 11% of the index, while they comprised just 4% of the fund - hurt performance. With governments throughout the world attempting to limit health care expenditure growth and U.S. health maintenance organizations (HMOs) trying to contain industry costs, I thought the industry would suffer a slowdown. Unfortunately, many health care stocks - particularly pharmaceuticals - continued to perform well, rising about 23% during the period. Thus, my strategy of underweighting these stocks hurt the fund's return. Q. ASIDE FROM HEALTH STOCKS, HOW DID OTHER SECTORS PERFORM DURING THE PERIOD? A. The finance sector, which accounted for around 14% of the fund's assets at the end of the period, rose approximately 23%. This strong showing was due largely to falling interest rates, excellent expense control and continuing industry consolidation. Some financial stocks held by the fund included American International Group, a leading insurer with operations in Asia; Washington Mutual, a rapidly growing West Coast thrift, and First Bank Systems, a Minneapolis bank with the lowest expense ratio in the industry and a recent acquiror of another stock in Contrafund's portfolio, U.S. Bancorp. On the other hand, the fund's energy exploration and production positions were hurt by falling oil and natural gas prices. These declining commodity prices caused the earnings estimates and P/E's of many energy-related stocks to tumble, and as of period end, the fund's exposure to these stocks had fallen from around 23% six months ago to approximately 13%. I retained my investments in the energy service and drilling subsectors, where earnings were promising. Low capital investment in the energy sector has resulted in a tight supply of oil service equipment. Some stocks that benefited from this positive trend included Schlumberger, Halliburton, ENSCO International and Smith International, all top 25 positions within the portfolio. Q. DID YOU PLAY ANY PARTICULAR THEMES DURING THE PERIOD? A. One area that holds promise is the cable television industry. These stocks have performed poorly over the last four years as subscriber growth slowed and government regulation restricted the industry's ability to raise prices. As a result, the market still holds an overly pessimistic view of this group. But the increased popularity of the Internet may provide a huge opportunity for these companies to reaccelerate their growth. Many cable TV companies are offering access to the "information superhighway" at dramatically faster speeds than is currently available over telephone wires. As more and more individuals and companies rely on the Internet for low-cost communication, offering faster transmission speeds could benefit the cable TV industry and help turn its fortunes around. Two other groups that should benefit from the Internet's popularity are the technology and telecommunications sectors. Two of the fund's top positions - Lucent Technologies and Alcatel - are leading providers of the equipment being used to improve the Internet's operating efficiency. Q. WHAT'S YOUR OUTLOOK? A. As I mentioned, the biggest stocks in the S&P 500 are quite expensive, a trend that could continue for several years. If it does, I'll continue my contrarian approach of looking for undervalued, out-of-favor companies that are growing their earnings rapidly and therefore have the capability to produce good share price appreciation. THE VIEWS EXPRESSED IN THIS REPORT REFLECT THOSE OF THE PORTFOLIO MANAGER ONLY THROUGH THE END OF THE PERIOD OF THE REPORT AS STATED ON THE COVER. THE MANAGER'S VIEWS ARE SUBJECT TO CHANGE AT ANY TIME BASED ON MARKET AND OTHER CONDITIONS. FUND FACTS GOAL: to increase the value of the fund's shares over the long term by investing in companies that are undervalued or out of favor FUND NUMBER: 022 TRADING SYMBOL: FCNTX START DATE: May 17, 1967 SIZE: as of June 30, 1997, more than $27.5 billion MANAGER: Will Danoff, since 1990; manager, VIPII: Contrafund since 1995; Fidelity Select Retailing Portfolio, 1986-1989; joined Fidelity in 1986 (checkmark) WILL DANOFF ON "CONTRARIAN" INVESTING: "In keeping with Contrafund's strategy, I try to find undervalued but potentially promising companies before the market catches on. In many cases, I may feel market perception concerning a stock I like is too pessimistic. But contrarian investing does not necessarily translate to buying only low P/E companies. In the last six months, for example, the fund increased its holdings in very rapidly growing companies trading at high P/E multiples. Despite a sound fundamental backdrop, this group of stocks has been under intense selling pressure over the past six months. This pressure came mostly from redemptions from aggressive growth funds that were forced to sell positions due to falling share prices. In some cases shares of these fast-growing companies fell by more than 50% from their previous highs. In my view, because the fundamentals were still stable to improving, this created a golden opportunity to add to or establish positions in this area. Stocks such as Blyth Industries, McLeodUSA and Thermo Instruments were representative of this strategy." INVESTMENT CHANGES TOP TEN STOCKS AS OF JUNE 30, 1997 % OF FUND'S % OF FUND'S INVESTMENTS INVESTMENTS IN THESE STOCKS 6 MONTHS AGO Schlumberger Ltd. 1.6 2.2 Lucent Technologies, Inc. 1.1 0.3 Home Depot, Inc. (The) 1.1 0.6 American International Group, Inc. 1.0 0.0 Royal Dutch Petroleum Co. ADR 1.0 1.2 Alcatel Alsthom Compagnie Generale 1.0 0.1 d'Electricite SA Texas Instruments, Inc. 1.0 0.2 Tyco International Ltd. 1.0 0.6 Westinghouse Electric Corp. 1.0 0.5 CVS Corp. 1.0 0.6 TOP FIVE MARKET SECTORS AS OF JUNE 30, 1997 % OF FUND'S % OF FUND'S INVESTMENTS INVESTMENTS IN THESE MARKET SECTORS 6 MONTHS AGO Technology 14.1 13.9 Finance 13.7 10.7 Energy 12.7 23.5 Retail & Wholesale 7.7 6.4 Industrial Machinery & Equipment 6.3 4.1 ASSET ALLOCATION (% OF FUND'S INVESTMENTS) AS OF JUNE 30, 1997 * AS OF DECEMBER 31, 1996 ** Row: 1, Col: 1, Value: 6.4 Row: 1, Col: 2, Value: 2.3 Row: 1, Col: 3, Value: 41.3 Row: 1, Col: 4, Value: 50.0 Stocks 88.3% Bonds 5.0% Short-term investments 6.7% FOREIGN INVESTMENTS 11.4% Stocks 92.3% Bonds 1.3% Short-term investments 6.4% FOREIGN INVESTMENTS 16.4% Row: 1, Col: 1, Value: 6.7 Row: 1, Col: 2, Value: 5.0 Row: 1, Col: 3, Value: 44.0 Row: 1, Col: 4, Value: 44.3 * ** INVESTMENTS JUNE 30, 1997 (UNAUDITED) Showing Percentage of Total Value of Investment in Securities COMMON STOCKS - 91.4% SHARES VALUE (NOTE 1) (000S) AEROSPACE & DEFENSE - 2.0% AEROSPACE & DEFENSE - 1.9% AlliedSignal, Inc. 1,016,400 $ 85,378 Boeing Co. 1,494,920 79,324 GenCorp, Inc. 944,100 21,832 Gulfstream Aerospace Corp. (a) 922,700 27,220 Lockheed Martin Corp. 938,200 97,162 Sundstrand Corp. 779,800 43,523 Textron, Inc. 865,100 57,421 United Technologies Corp. 1,576,200 130,825 542,685 DEFENSE ELECTRONICS - 0.0% Datum, Inc. (a) 70,300 2,179 Raytheon Co. 109,700 5,595 7,774 SHIP BUILDING & REPAIR - 0.1% General Dynamics Corp. 222,900 16,718 TOTAL AEROSPACE & DEFENSE 567,177 BASIC INDUSTRIES - 4.8% CHEMICALS & PLASTICS - 2.3% Air Products & Chemicals, Inc. 254,700 20,694 Avery Dennison Corp. 56,900 2,283 Cambrex Corp. (d) 799,150 31,766 Crompton & Knowles Corp. 3,122,317 69,472 Cytec Industries, Inc. (a) 1,452,500 54,287 du Pont (E.I.) de Nemours & Co. 594,600 37,385 Engelhard Corp. 9,200 193 FMC Corp. (a) 16,000 1,271 Ferro Corp. 211,700 7,846 Fuller (H.B.) Co. 474,100 26,076 Goodrich (B.F.) Co. 415,800 18,009 Monsanto Co. 2,970,800 127,930 Morton International, Inc. 823,400 24,856 Nalco Chemical Co. 421,100 16,265 Praxair, Inc. 1,165,000 65,240 Raychem Corp. 206,400 15,351 Sealed Air Corp. (a) 1,474,700 70,048 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) BASIC INDUSTRIES - CONTINUED CHEMICALS & PLASTICS - CONTINUED Union Carbide Corp. 375,800 $ 17,686 Witco Corp. 465,800 17,671 W.R. Grace & Co. 553,400 30,506 654,835 IRON & STEEL - 0.2% Aeroquip Vickers, Inc. 84,300 3,983 Nucor Corp. 448,500 25,340 Steel Dynamics, Inc. (a) 370,100 9,253 38,576 METALS & MINING - 0.7% Alcan Aluminium Ltd. 388,100 13,240 Aluminum Co. of America 908,900 68,508 Falconbridge Ltd. 693,600 13,614 Reynolds Metals Co. 548,800 39,102 Rio Tinto PLC (Reg.) 2,715,900 47,314 Tongkah Holdings BHD (a)(d) 9,587,000 18,304 200,082 PACKAGING & CONTAINERS - 0.5% Crown Cork & Seal Co., Inc. 429,900 22,973 Owens-Illinois, Inc. (a) 3,486,600 108,085 Peak International Ltd. 335,700 4,028 Silgan Holdings, Inc. (d) 325,600 12,617 147,703 PAPER & FOREST PRODUCTS - 1.1% Abitibi-Consolidated, Inc. 256,700 4,583 American Pad & Paper Co. (a) 865,900 14,612 Bowater, Inc. 210,100 9,717 Champion International Corp. 350,700 19,376 Deltic Timber Corp. 146,028 4,280 Fort Howard Corp. (a) 107,600 5,447 Georgia-Pacific Corp. 107,500 9,178 International Paper Co. 258,000 12,529 James River Corp. of Virginia 2,379,800 88,053 Kimberly-Clark Corp. 1,699,300 84,540 Mail-Well, Inc. 9,000 257 Malakoff BHD 8,544,000 37,229 Temple-Inland, Inc. 290,600 15,692 305,493 TOTAL BASIC INDUSTRIES 1,346,689 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) CONSTRUCTION & REAL ESTATE - 3.6% BUILDING MATERIALS - 1.0% American Residential Services, Inc. (a) 365,600 $ 8,500 American Standard Companies, Inc. (a) 83,100 3,719 Coltec Industries, Inc. 1,305,500 25,457 Hume Industries BHD 6,798,000 31,237 Lilly Industrial Coatings, Inc. Class A 609,500 12,266 Masco Corp. 1,475,800 61,615 Medusa Corp. 176,600 6,777 Sherwin-Williams Co. 1,231,400 38,019 Southdown, Inc. 648,000 28,269 USG Corp. (a) 1,362,900 49,746 York International Corp. 17,900 822 266,427 CONSTRUCTION - 0.2% Centex Corp. 333,300 13,540 Lennar Corp. 292,000 9,326 Morrison Knudsen Corp. (a) 498,500 6,792 Walter Industries, Inc. (a) 31,400 526 YTL Corp. BHD 7,076,250 21,863 52,047 ENGINEERING - 0.0% DSP Group, Inc. (a) 121,100 1,814 Stone & Webster, Inc. 11,100 474 2,288 REAL ESTATE - 0.3% Bandar Raya Development BHD 4,483,000 5,860 Boston Properties, Inc. 580,200 15,956 Catellus Development Corp. (a) 177,000 3,208 Crescent Operating, Inc. 243,470 2,922 Grand Palais Management Co., LP (a)(f) 398,400 0 Rouse Co. (The) 1,746,976 51,536 Stewart Enterprises, Inc. Class A 17,900 752 80,234 REAL ESTATE INVESTMENT TRUSTS - 2.1% Arden Realty Group, Inc. 733,100 19,061 BRE Properties, Inc. Class A 31,400 789 Bay Apartment Communities, Inc. 354,100 13,102 Bedford Property Investors, Inc. (d) 691,300 13,912 Bradley Real Estate Trust (SBI) 312,000 6,006 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) CONSTRUCTION & REAL ESTATE - CONTINUED REAL ESTATE INVESTMENT TRUSTS - CONTINUED Cali Realty Corp. 439,200 $ 14,933 Crescent Real Estate Equities, Inc. 2,434,700 77,302 Duke Realty Investors, Inc. 223,843 9,066 Equity Residential Properties Trust (SBI) 1,057,500 50,231 Essex Property Trust, Inc. 124,700 4,006 Felcor Suite Hotels, Inc. 1,149,800 42,830 First Industrial Realty Trust, Inc. 735,300 21,508 Glenborough Realty Trust, Inc. 447,200 11,292 Golf Trust of America, Inc. (d) 383,100 10,655 Home Properties of NY, Inc. 82,300 1,852 Irvine Apartment Communities, Inc. 31,400 926 Kilroy Realty Corp. 103,900 2,623 Kimco Realty Corp. 617,000 19,590 LTC Properties, Inc. 473,600 8,584 Macerich Co. 538,000 14,930 Pacific Gulf Properties, Inc. 22,400 493 Patriot American Hospitality, Inc. 1,302,500 33,214 Patriot American Hospitality, Inc. (Pair Certf) 675,932 30,417 Public Storage, Inc. 351,500 10,281 Reckson Associates Realty Corp. 1,096,000 25,208 Speiker Properties, Inc. 679,400 23,906 Starwood Lodging Trust combined certificate (SBI) (d) 2,396,100 102,284 Sunstone Hotel Investors, Inc. 305,300 4,427 Urban Shopping Centers, Inc. 47,100 1,501 Vornado Realty Trust 289,600 20,887 Weeks Corp. 274,800 8,588 604,404 TOTAL CONSTRUCTION & REAL ESTATE 1,005,400 DURABLES - 4.7% AUTOS, TIRES, & ACCESSORIES - 2.1% Chrysler Corp. 2,122,800 69,654 Circuit City Stores, Inc. - CarMax Group 919,600 13,162 Cross-Continent Auto Retailers, Inc. (a) 425,900 4,499 Danaher Corp. 1,989,900 101,112 Eaton Corp. 248,500 21,697 Echlin, Inc. 430,800 15,509 Federal-Mogul Corp. 357,600 12,516 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) DURABLES - CONTINUED AUTOS, TIRES, & ACCESSORIES - CONTINUED Ford Motor Co. 2,605,100 $ 98,342 General Motors Corp. 975,800 54,340 General Motors Corp. Class H 96,400 5,567 Lear Corp. (a) 1,172,500 52,030 Navistar International Corp. (a) 1,771,700 30,562 OmniQuip International, Inc. 216,900 5,016 SPX Corp. (d) 964,200 62,492 Superior Industries International, Inc. 14,800 392 TRW, Inc. 88,500 5,028 Tower Automotive, Inc. (a) 385,000 16,555 Toyota Motor Corp. 584,000 17,218 United Auto Group, Inc. (a) 440,900 8,735 594,426 CONSUMER DURABLES - 1.2% Blyth Industries, Inc. (a) 126,600 4,272 Corning, Inc. 2,188,400 121,730 Minnesota Mining & Manufacturing Co. 1,756,300 179,143 Samsonite Corp. (a) 474,400 20,933 326,078 CONSUMER ELECTRONICS - 0.6% Electrolux AB 61,300 4,430 Gemstar International Group Ltd. (a) 407,000 7,479 Maytag Co. 421,600 11,015 Oyl Industries BHD 2,962,000 18,773 Philips Electronics NV 1,445,000 103,859 Philips Electronics NV (Bearer) 319,400 22,864 Sunbeam-Oster, Inc. 107,500 4,058 172,478 HOME FURNISHINGS - 0.2% Furniture Brands International, Inc. 107,500 2,083 Leggett & Platt, Inc. 541,200 23,271 Linens 'n Things, Inc. 776,900 23,016 Miller (Herman), Inc. 60,600 2,182 50,552 TEXTILES & APPAREL - 0.6% Dexter Corp. 444,400 14,221 House of Fraser PLC Class L 5,925,900 15,734 Intimate Brands, Inc. Class A 363,900 7,642 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) DURABLES - CONTINUED TEXTILES & APPAREL - CONTINUED Kellwood Co. 55,600 $ 1,543 Liz Claiborne, Inc. 912,000 42,522 Mohawk Industries, Inc. (a) 17,800 405 Polo Ralph Lauren Corp. Class A 78,900 2,160 Reebok International Ltd. 1,346,800 62,963 Stride Rite Corp. 438,500 5,646 Unifi, Inc. 196,600 7,347 Warnaco Group, Inc. Class A 394,400 12,571 172,754 TOTAL DURABLES 1,316,288 ENERGY - 12.7% ENERGY SERVICES - 6.2% BJ Services Co. (a) 1,562,047 83,765 Baker Hughes, Inc. 1,133,300 43,844 Diamond Offshore Drilling, Inc. (a) 1,833,948 142,819 Dresser Industries, Inc. 1,816,900 67,679 ENSCO International, Inc. (a)(d) 4,207,200 221,930 Falcon Drilling, Inc. 667,300 38,453 Global Marine, Inc. (a) 1,910,400 44,417 Halliburton Co. 2,630,800 208,491 McDermott International, Inc. 1,700,900 49,645 Nabors Industries, Inc. (a) 2,950,000 73,750 Noble Drilling Corp. (a) 2,330,500 52,582 Reading & Bates Corp. (a) 258,000 6,902 Santa Fe International Corp. 62,300 2,118 Schlumberger Ltd. 3,538,300 442,288 Smith International, Inc. (a)(d) 3,181,100 193,252 Varco International, Inc. (a) 635,800 20,504 Weatherford Enterra, Inc. (a) 705,000 27,142 Western Atlas, Inc. (a) 76,200 5,582 1,725,163 OIL & GAS - 6.5% Amoco Corp. 1,046,400 90,972 Anadarko Petroleum Corp. 53,800 3,228 Atlantic Richfield Co. 108,300 7,635 Barrett Resources Corp. (a) 6,100 183 British Petroleum PLC ADR 2,639,970 197,668 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) ENERGY - CONTINUED OIL & GAS - CONTINUED Burlington Resources, Inc. 1,925,900 $ 84,980 Camco International, Inc. 1,361,400 74,537 Canadian Natural Resources Ltd. (a) 1,633,200 42,408 Chesapeake Energy Corp. (a) 99,200 973 Coastal Corp. (The) 968,300 51,501 Cooper Cameron Corp. (a) 1,471,600 68,797 Enron Oil & Gas Co. 83,800 1,519 Forcenergy Gas Exploration, Inc. (a) 991,700 30,123 Hanover Compressor Co. 20,100 392 Mesa, Inc. (a) 1,402,800 8,066 Mobil Corp. 1,201,100 83,927 Murphy Oil Corp. 1,341,200 65,383 Newfield Exploration Co. (a)(d) 1,886,300 37,726 Norcen Energy Resources Ltd. 157,200 3,746 Ocean Energy, Inc. (a) 67,500 3,122 Oryx Energy Co. (a) 405,800 8,573 Parker & Parsley Petroleum Co. 465,200 16,456 Penn West Petroleum Ltd. (a) 167,800 2,145 Penn West Petroleum Ltd. (a)(e) 771,900 9,868 Petsec Energy Ltd. sponsored ADR 642,900 14,626 Phillips Petroleum Co. 812,100 35,529 Pogo Producing Co. 1,165,000 45,071 Renaissance Energy Ltd. (a) 2,327,988 64,748 Rio Alto Exploration Ltd. (a) 281,600 2,356 Royal Dutch Petroleum Co. ADR 5,239,600 284,903 Santa Fe Energy Resources, Inc. 2,233,000 32,797 Swift Energy Co. (a) 230,600 5,506 Texaco, Inc. 897,600 97,614 Tosco Corp. 3,387,600 101,416 Total SA Class B 1,087,772 109,883 United Meridian Corp. (a) 1,119,200 33,576 Unocal Corp. 2,528,376 98,133 Vastar Resources, Inc. 34,800 1,220 Vintage Petroleum, Inc. 72,700 2,236 YPF Sociedad Anonima sponsored ADR 22,400 689 YPF Sociedad Anonima Class D 35,800 1,103 1,825,334 TOTAL ENERGY 3,550,497 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) FINANCE - 13.7% BANKS - 3.9% Bangkok Bank Ltd. (For. Reg.) 427,400 $ 2,937 Bank International Indonesia PT (For. Reg.) 10,506,524 9,072 Bank of New York Co., Inc. 2,009,400 87,409 Bank of Nova Scotia Halifax 22,400 982 BankBoston Corp. 79,500 5,729 BankAmerica Corp. 3,003,700 193,926 Citicorp 211,600 25,511 Comerica, Inc. 619,800 42,146 Credit Suisse Group (Reg.) 764,600 98,093 Credito Italiano Ord. 13,948,300 25,514 Fifth Third Bancorp 204,100 16,749 First Bank System, Inc. 1,967,000 167,933 First Union Corp. 255,600 23,643 HSBC Holdings PLC 2,145,018 63,560 Hong Leong Bank: BHD 2,289,000 5,758 BHD rights 7/15/97 (a) 258,125 41 Class A 586,200 2,755 Imperial Bancorp 53,800 1,553 Lloyds TSB Group PLC 1,751,800 17,964 Mellon Bank Corp. 246,500 11,123 National City Corp. 873,090 45,837 North Fork Bancorp., Inc. 1,641,100 35,079 Norwest Corp. 378,800 21,308 Royal Bank of Canada 53,800 2,437 Standard Chartered Bank PLC 2,436,000 37,146 Star Banc Corp. 16,800 710 U.S. Bancorp 1,478,300 94,796 Wells Fargo & Co. 100,400 27,058 Zions Bancorp 812,700 30,578 1,097,347 CLOSED END INVESTMENT COMPANY - 0.2% GT Global Developing Markets Fund 642,000 9,028 Morgan Stanley Emerging Markets Fund, Inc. 341,900 6,111 Morgan Stanley Asia-Pacific Fund, Inc. 1,608,500 16,889 Schroder Asian Growth Fund, Inc. 435,500 5,580 Templeton Dragon Fund, Inc. 742,500 12,066 49,674 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) FINANCE - CONTINUED CREDIT & OTHER FINANCE - 2.1% Arab Malaysian Corp. BHD 7,961,000 $ 29,643 American Express Co. 2,322,700 173,041 Associates First Capital Corp. 201,800 11,200 Finova Group, Inc. 288,800 22,093 Fleet Financial Group, Inc. 2,115,800 133,824 Greenpoint Financial Corp. 1,394,700 92,835 Homeside, Inc. 17,900 392 Household International, Inc. 766,488 90,014 Hong Leong Credit: BHD 2,931,000 10,914 BHD rights 7/24/97 (a) 293,100 290 BHD warrants/rights 7/24/97 (a) 586,200 0 Hong Leong Finance Ltd. (For. Reg.) 421,000 1,196 TA Enterprise BHD 7,017,000 7,477 572,919 FEDERAL SPONSORED CREDIT - 1.3% Federal Home Loan Mortgage Corporation 4,270,900 146,812 Federal National Mortgage Association 5,103,300 222,632 369,444 INSURANCE - 4.5% ACE Ltd. 277,600 20,508 Aetna, Inc. 604,100 61,845 AFLAC, Inc. 346,500 16,372 Allmerica Financial Corp. 732,600 29,212 Allstate Corp. 2,599,900 189,793 AMBAC, Inc. 106,600 8,142 American General Corp. 246,600 11,775 American International Group, Inc. 1,937,300 289,384 Aon Corp. 540,150 27,953 ARM Financial Group, Inc. Class A 20,300 406 Berkshire Hathaway, Inc. (a) 330 15,576 Brascan Ltd. Class A 107,900 2,669 CIGNA Corp. 342,500 60,794 Chubb Corp. (The) 76,100 5,089 Exel Ltd. 53,800 2,838 Hartford Financial Services Group, Inc. 685,400 56,717 MGIC Investment Corp. 277,200 13,288 Mid Ocean Ltd. 41,800 2,192 Old Republic International Corp. 82,500 2,501 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) FINANCE - CONTINUED INSURANCE - CONTINUED Progressive Corp. 450,100 $ 39,159 Provident Companies, Inc. 170,200 9,106 Providian Financial Corp. (a) 72,300 2,322 Reinsurance Group of America, Inc. 36,100 2,076 Reliastar Financial Corp. 215,200 15,737 St. Paul Companies, Inc. (The) 210,400 16,043 Security-Connecticut Corp. (d) 620,000 34,139 SunAmerica, Inc. 681,300 33,213 Torchmark Corp. 571,100 40,690 Travelers Group, Inc. (The) 2,679,233 168,958 UNUM Corp. 1,093,800 45,940 USF&G Corp. 1,337,500 32,100 1,256,537 SAVINGS & LOANS - 1.6% Ahmanson (H.F.) & Co. 792,000 34,056 Charter One Financial Corp. 231,515 12,473 Dime Bancorp., Inc. 1,032,900 18,076 Glendale Federal Bank FSB (a) 2,351,400 61,430 Golden West Financial Corp. 669,300 46,851 Great Western Financial Corp. 1,596,700 85,823 TCF Financial Corp. 475,900 23,497 Washington Mutual, Inc. 2,872,200 171,614 453,820 SECURITIES INDUSTRY - 0.1% Guoco Group Ltd. 3,970,000 20,908 Morgan Stanley Dean Witter Discover and Co. 164,600 7,088 27,996 TOTAL FINANCE 3,827,737 HEALTH - 4.2% DRUGS & PHARMACEUTICALS - 1.8% Barr Laboratories, Inc. (a) 198,250 8,723 Bristol-Myers Squibb Co. 1,037,300 84,021 Elan Corp. PLC ADR (a) 483,500 21,878 Glaxo PLC sponsored ADR 107,500 4,495 Immunex Corp. 9,000 326 Interneuron Pharmaceuticals, Inc. 31,400 632 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) HEALTH - CONTINUED DRUGS & PHARMACEUTICALS - CONTINUED Merck & Co., Inc. 98,600 $ 10,205 Novartis AG (Reg.) 133,660 213,454 Pfizer, Inc. 513,200 30,664 Schering-Plough Corp. 1,367,100 65,450 Sepracor, Inc. (a) 262,000 6,763 Warner-Lambert Co. 490,900 60,994 507,605 MEDICAL EQUIPMENT & SUPPLIES - 0.5% Bausch & Lomb, Inc. 490,700 23,124 Baxter International, Inc. 337,600 17,640 Boston Scientific Corp. (a) 20,100 1,235 Cardinal Health, Inc. 198,950 11,390 McKesson Corp. 111,500 8,641 Medtronic, Inc. 453,100 36,701 Nitinol Medical Technologies, Inc. 9,000 136 St. Jude Medical, Inc. (a) 757,500 29,543 Sybron International Corp. (a) 316,900 12,636 141,046 MEDICAL FACILITIES MANAGEMENT - 1.9% Beverly Enterprises, Inc. (a) 705,600 11,466 Carematrix Corp. (a) 473,100 11,680 Columbia/HCA Healthcare Corp. 73,700 2,897 Coventry Corp. (a) 894,200 13,525 FPA Medical Management, Inc. 98,500 2,333 HEALTHSOUTH Rehabilitation Corp. (a) 5,495,400 137,042 Health Management Associates, Inc. Class A (a) 2,811,450 80,126 Humana, Inc. (a) 142,300 3,291 Integrated Health Services, Inc. (d) 1,684,100 64,838 NovaCare, Inc. (a) 446,500 6,195 Oxford Health Plans, Inc. (a) 523,000 37,525 Quorum Health Group, Inc. (a) 82,100 2,935 Sunrise Assisted Living, Inc. (a)(d) 1,049,000 36,715 Tenet Healthcare Corp. (a) 1,721,000 50,877 Trigon Healthcare, Inc. 1,272,800 30,865 United HealthCare Corp. 285,800 14,862 Vencor, Inc. (a) 279,100 11,792 518,964 TOTAL HEALTH 1,167,615 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) HOLDING COMPANIES - 0.7% Astra International PT (For. Reg.) 3,580,000 $ 14,721 Malaysian Plantations BHD 14,164,000 19,076 Norfolk Southern Corp. 1,413,600 142,420 PartnerRe Ltd. 141,200 5,383 Triarc Companies, Inc. Class A (a) 214,900 4,379 185,979 INDUSTRIAL MACHINERY & EQUIPMENT - 6.3% ELECTRICAL EQUIPMENT - 2.0% AMETEK, Inc. 589,600 13,856 Common Development International Ltd. (a)(e) 428,000 7,827 Computer Products, Inc. (a) 20,400 510 General Electric Co. 691,200 45,187 General Instrument Corp. (a) 753,900 18,848 Honeywell, Inc. 405,300 30,752 Kuhlman Corp. 84,700 2,732 Loral Space & Communications Ltd. (a) 7,606,300 114,095 Roper Industries, Inc. 76,900 3,989 Scientific-Atlanta, Inc. 1,256,800 27,493 Spectrain Corp. 26,900 992 United Engineers BHD 2,356,000 16,985 Viasat, Inc. 59,000 856 Westinghouse Electric Corp. 11,815,318 273,228 557,350 INDUSTRIAL MACHINERY & EQUIPMENT - 3.2% AGCO Corp. 89,800 3,227 Case Corp. 1,788,200 123,162 Caterpillar, Inc. 760,600 81,669 Cooper Industries, Inc. 235,000 11,691 Dover Corp. 304,600 18,733 Harnischfeger Industries, Inc. 658,100 27,311 Illinois Tool Works, Inc. 1,848,200 92,294 Ingersoll-Rand Co. 1,060,000 65,455 Kaydon Corp. (d) 1,032,100 51,218 Keystone International, Inc. 865,000 30,005 New Holland NV (d) 2,840,100 77,748 Parker-Hannifin Corp. 139,000 8,436 Stanley Works 571,000 22,840 Thermo Fibergen, Inc. rights 12/31/01 (a) 158,300 425 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED INDUSTRIAL MACHINERY & EQUIPMENT - CONTINUED Timken Co. 858 $ 31 Tyco International Ltd. 4,026,800 280,115 894,360 POLLUTION CONTROL - 1.1% Allied Waste Industries, Inc. (a) 157,900 2,744 Browning-Ferris Industries, Inc. 435,100 14,467 Thermo Instrument Systems, Inc. (a) 602,500 18,452 USA Waste Services, Inc. (a) 5,024,670 194,078 United Waste Systems, Inc. (a) 1,631,300 66,883 Waste Management, Inc. 24,000 770 297,394 TOTAL INDUSTRIAL MACHINERY & EQUIPMENT 1,749,104 MEDIA & LEISURE - 5.6% BROADCASTING - 1.4% APT Satellite Holdings Ltd. sponsored ADR 2,274,400 28,714 American Radio Systems Corp. Class A (a) 288,600 11,508 Asia Satellite Telecommunications Holdings Ltd. 2,232,500 6,844 Clear Channel Communications, Inc. (a) 364,500 22,440 Cox Communications, Inc. Class A (a) 487,800 11,707 Evergreen Media Corp. Class A (a) 49,600 2,213 HSN, Inc. (a) 72,800 2,275 Jacor Communications, Inc. Class A (a) 1,004,500 38,422 Smartalk Teleservices, Inc. (a) 490,600 7,604 TCA Cable TV, Inc. 80,700 3,036 TCI Group Class A (a) 2,346,600 34,906 Time Warner, Inc. 4,282,636 206,637 Univision Communications, Inc. Class A (a) 86,800 3,397 379,703 ENTERTAINMENT - 0.9% Airtours PLC 261,800 5,064 Disney (Walt) Co. 2,123,400 170,403 Family Golf Centers, Inc. (a) 21,800 501 Multi-Purpose Holdings BHD 12,703,000 17,813 Premier Parks, Inc. (a) 820,900 30,271 Regal Cinemas, Inc. (a) 172,400 5,689 Viacom, Inc.: Class A (a) 350,200 10,397 Class B (non-vtg.) (a) 434,500 13,035 253,173 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) MEDIA & LEISURE - CONTINUED LEISURE DURABLES & TOYS - 0.9% Brunswick Corp. 1,451,900 $ 45,373 Callaway Golf Co. 593,600 21,073 Champion Enterprises, Inc. (a) 270,200 4,053 Harley-Davidson, Inc. 310,100 14,865 Hasbro, Inc. 4,081,350 115,808 Mattel, Inc. 1,249,225 42,317 Nintendo Co. Ltd. Ord. 290,300 24,309 267,798 LODGING & GAMING - 0.9% Bristol Hotel Co. (a) 63,700 2,453 Doubletree Corp. (a) 342,300 14,077 Four Seasons Hotels, Inc. 1,125,600 33,426 HFS, Inc. (a) 2,253,300 130,691 Hilton Hotels Corp. 30,800 818 Host Marriott Corp. (a) 901,400 16,056 ITT Corp. 53,700 3,279 La Quinta Motor Inns, Inc. 1,168,200 25,554 Marriott International, Inc. 26,400 1,620 WMS Industries, Inc. 919,800 23,053 251,027 PUBLISHING - 0.8% Big Flower Press Holdings, Inc. (a)(d) 1,693,300 35,136 Dow Jones & Co., Inc. 284,200 11,421 Harte Hanks Communications, Inc. 65,900 1,944 Meredith Corp. 471,300 13,668 New York Times Co. (The) Class A 942,600 46,659 Pearson PLC 1,898,500 21,997 Times Mirror Co. Class A 1,435,600 79,317 Tribune Co. 540,200 25,963 236,105 RESTAURANTS - 0.7% Boston Chicken, Inc. (a) 778,200 10,894 Chart House Enterprises, Inc. 44,800 338 Compass Group PLC Ord. 406,700 4,560 Cracker Barrel Old Country Store, Inc. 94,200 2,496 Fine Host Corp. (a) 279,200 8,795 Landry's Seafood Restaurants, Inc. (a) 845,200 19,440 Lone Star Steakhouse Saloon 22,400 582 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) MEDIA & LEISURE - CONTINUED RESTAURANTS - CONTINUED McDonald's Corp. 2,012,900 $ 97,248 Papa John's International, Inc. (a) 126,300 4,642 Rainforest Cafe, Inc. (a) 99,000 2,512 ShowBiz Pizza Time, Inc. (a) 546,000 14,401 Starbucks Corp. (a) 153,400 5,973 Wendy's International, Inc. 489,300 12,691 184,572 TOTAL MEDIA & LEISURE 1,572,378 NONDURABLES - 4.0% AGRICULTURE - 0.0% Pioneer Hi-Bred International, Inc. 169,700 13,576 BEVERAGES - 0.7% Cadbury-Schweppes PLC Ord. 9,670,404 86,287 Coors (Adolph) Co. Class B 256,600 6,832 COTT Corp. 53,800 573 PepsiCo, Inc. 3,024,700 113,615 207,307 FOODS - 1.5% CPC International, Inc. 18,700 1,726 Campbell Soup Co. 1,031,400 51,570 Dean Foods Co. 906,300 36,592 Dole Food, Inc. 266,400 11,389 Earthgrains Co. 54,500 3,573 Flowers Industries, Inc. 267,700 4,501 Hershey Foods Corp. 734,200 40,610 Interstate Bakeries Corp. 68,000 4,033 Nabisco Holdings Corp. Class A 1,598,900 63,756 Nestle SA (Reg.) 59,265 78,101 Ralston Purina Co. 732,200 60,178 Sara Lee Corp. 639,700 26,628 Tasty Baking Co. 4,500 79 Tootsie Roll Industries, Inc. 205,424 9,141 Tyson Foods, Inc. 774,900 14,820 406,697 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) NONDURABLES - CONTINUED HOUSEHOLD PRODUCTS - 1.4% Church & Dwight Co., Inc. 218,600 $ 5,847 Dial Corp. 1,683,300 26,302 Estee Lauder Companies, Inc. 104,300 5,241 Gillette Co. 1,477,300 139,974 Metro Pacific, Inc. Class B 70,863,500 15,314 Premark International, Inc. 611,800 16,366 Stanhome, Inc. 47,200 1,552 Unilever NV: Ord. 655,370 137,874 ADR 187,600 40,158 388,628 TOBACCO - 0.4% Consolidated Cigar Holdings, Inc. Class A (a)(d) 870,000 24,143 Culbro Corp. (a) 19,300 2,686 Dimon, Inc. 62,800 1,664 Gallaher Group PLC sponsored ADR (a) 656,300 12,101 General Cigar Holdings, Inc. Class A 102,300 3,011 Grupo Carso SA de CV Class A-1 7,259,000 50,788 Gudang Garam PT Perusahaan (For. Reg.) 1,727,500 7,245 Swisher International Group, Inc. Class A (d) 565,300 9,751 Universal Corp. 72,600 2,305 113,694 TOTAL NONDURABLES 1,129,902 PRECIOUS METALS - 0.7% Euro-Nevada Mining Ltd. 1,414,300 43,535 Euro-Nevada Mining Ltd. (e) 143,000 4,402 Franco-Nevada Mining Corp. (d) 2,005,400 100,586 Getchell Gold Corp. (a) 419,888 14,801 Indochina Goldfields Ltd. (a) 915,200 4,309 Indochina Goldfields Ltd. (a)(e) 948,400 4,465 Newmont Mining Corp. 453,100 17,671 189,769 RETAIL & WHOLESALE - 7.6% APPAREL STORES - 0.8% AnnTaylor Stores Corp. (a) 472,200 9,208 Charming Shoppes, Inc. (a)(d) 10,539,400 55,003 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) RETAIL & WHOLESALE - CONTINUED APPAREL STORES - CONTINUED Gap, Inc. 966,700 $ 37,580 Goody's Family Clothing (a)(d) 1,418,300 38,826 Payless ShoeSource, Inc. (a) 370,832 20,280 Ross Stores, Inc. 85,200 2,785 TJX Companies, Inc. 2,049,600 54,058 217,740 DRUG STORES - 1.0% CVS Corp. 5,280,104 270,605 General Nutrition Companies, Inc. (a) 107,600 3,013 273,618 GENERAL MERCHANDISE STORES - 2.2% Coles Myer Ltd. 2,304,800 11,971 Costco Companies, Inc. (a) 2,002,400 65,829 Dayton Hudson Corp. 1,505,600 80,079 Dollar Tree Stores (a) 173,000 8,715 Federated Department Stores, Inc. (a) 368,800 12,816 Hudson's Bay Co. Ord. 60,400 1,356 K mart Corp. (a) 2,796,600 34,258 Kohls Corp. (a) 480,700 25,447 Meyer (Fred), Inc. (a) 341,200 17,636 Michaels Stores, Inc. (a) 31,400 665 Nordstrom, Inc. 632,500 31,032 Stein Mart, Inc. (a) 873,200 26,196 Wal-Mart Stores, Inc. 6,004,200 203,017 Woolworth Corp. (a) 3,266,300 78,391 Woolworths Ltd. 3,861,900 12,662 610,070 GROCERY STORES - 1.2% Ahold NV 207,552 17,499 American Stores Co. 85,400 4,217 Asda Group PLC 7,588,900 15,665 Dominick's Supermarkets, Inc. (a)(d) 1,416,400 37,712 Fleming Companies, Inc. 249,800 4,496 Loblaw Companies Ltd. 327,900 4,512 Quality Food Centers, Inc. (a)(d) 1,249,700 47,489 Richfood Holdings, Inc. Class A (d) 2,942,450 76,504 Safeway, Inc. (a) 2,537,300 117,033 325,127 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) RETAIL & WHOLESALE - CONTINUED RETAIL & WHOLESALE, MISCELLANEOUS - 2.4% Barnes & Noble, Inc. (a) 19,300 $ 830 Bed Bath & Beyond, Inc. 9,000 273 Circuit City Stores, Inc. - Circuit City Group 2,347,200 83,472 Comcast Corp.: Class A 946,000 19,807 Class A special 1,075,200 22,982 Fabri-Centers of America, Inc. Class A (a) 30,300 826 Fingerhut Companies, Inc. 201,500 3,514 Hancock Fabrics, Inc. 275,000 3,781 Home Depot, Inc. (The) 4,326,500 298,258 Pier 1 Imports, Inc. 64,100 1,699 Staples, Inc. (a) 2,689,900 62,540 Tiffany & Co., Inc. 348,500 16,096 Toys "R" Us, Inc. (a) 2,284,154 79,945 U.S. Office Products Co. (a) 2,672,300 81,672 Viking Office Products, Inc. (a) 141,300 2,685 Williams-Sonoma, Inc. 9,000 385 678,765 TOTAL RETAIL & WHOLESALE 2,105,320 SERVICES - 2.9% ADVERTISING - 0.4% Interpublic Group of Companies, Inc. 659,900 40,460 Lycos, Inc. (a) 35,200 449 Omnicom Group, Inc. 567,300 34,960 Outdoor Systems, Inc. (a) 776,300 29,693 105,562 EDUCATIONAL SERVICES - 0.0% Apollo Group, Inc. Class A (a) 6,300 222 LEASING & RENTAL - 0.5% Budget Group, Inc. Class A (a)(d) 937,400 32,340 Danka Business Systems PLC sponsored ADR 187,200 7,652 Hertz Corp. Class A 1,793,500 64,566 Republic Industries, Inc. (a) 1,424,600 35,437 Ryder Systems, Inc. 423,200 13,966 153,961 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) SERVICES - CONTINUED PRINTING - 0.1% ASM Lithography Holding NV (a) 293,100 $ 17,146 Valassis Communications, Inc. (a) 315,600 7,575 24,721 SERVICES - 1.9% ADT Ltd. (a) 4,081,600 134,693 APAC Teleservices, Inc. (a)(d) 4,427,600 86,061 AccuStaff, Inc. (a) 1,178,700 27,920 Assisted Living Concepts, Inc. (a) 32,200 890 Borg Warner Security Corp. (a) 217,600 3,890 Corestaff, Inc. 26,900 726 Corrections Corp. of America (a) 259,700 10,323 Dun & Bradstreet Corp. 425,200 11,162 Ecolab, Inc. 1,023,700 48,882 Hays PLC 2,398,200 22,756 International Service Systems AS Series B (a) 195,490 7,005 Learning Tree International, Inc. (a) 107,800 4,784 National Service Industries, Inc. 418,500 20,376 Norrell Corp. GA 61,600 2,033 Personnel Group of America, Inc. (a) 60,500 1,743 Pittston Co. (Brinks Group) 60,900 1,827 Pierce Leahy Corp. 73,300 1,319 Premier Technologies, Inc. (a) 107,700 2,800 Registry, Inc. 11,100 511 Rentokil Group PLC 6,500,056 22,788 Robert Half International, Inc. (a) 577,100 27,160 Securicor Group PLC 4,663,000 22,123 Securitas AB Class B 732,075 20,670 Service Corp. International 71,700 2,357 Snyder Communications, Inc. (a) 110,100 2,966 Staffmark, Inc. (a) 150,800 3,374 SGS Societe Generale de Surveillance Holdings SA (Bearer) 8,100 17,292 SGS Societe Generale de Surveillance Holdings SA (Reg.) (a) 11,450 4,505 Telespectrum Worldwide, Inc. (a) 1,194,500 8,399 Wackenhut Corp. 23,600 566 Wackenhut Corrections Corp. (a) 241,400 7,031 528,932 TOTAL SERVICES 813,398 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) TECHNOLOGY - 13.9% COMMUNICATIONS EQUIPMENT - 4.1% ADC Telecommunications, Inc. 96,700 $ 3,227 ACE Commerce Corp. 12,600 247 Advanced Fibre Communication, Inc. 571,900 34,528 Alcatel Alsthom Compagnie Generale d'Electricite SA 2,261,920 283,115 Boston Technology, Inc. (a) 243,900 7,210 Ciena Corp. 767,600 36,173 Cisco Systems, Inc. (a) 228,800 15,358 DSC Communications Corp. (a) 525,800 11,699 Davox Corp. (a) 205,550 7,348 Dynatech Corp. (a) 294,800 10,539 Ericsson (L.M.) Telephone Co.: Class B 51,200 2,019 Class B ADR 1,025,000 40,359 Lucent Technologies, Inc. 4,229,300 304,774 Newbridge Networks Corp. (a) 1,851,000 80,519 Nokia Corp. AB sponsored ADR 979,800 72,260 Northern Telecom Ltd. 1,610,400 145,159 Tekelec (a) 92,700 3,279 Tellabs, Inc. (a) 1,368,000 76,437 1,134,250 COMPUTER SERVICES & SOFTWARE - 3.1% Acxiom Corp. (a) 18,400 378 Alphanet Solutions, Inc. (a) 259,200 3,824 Aspen Technology, Inc. (a) 21,700 817 Automatic Data Processing, Inc. 2,456,500 115,456 Broderbund Software, Inc. (a) 428,200 10,571 Baan Co. NV (a) 202,300 13,933 CUC International, Inc. (a) 2,788,900 71,988 Ceridian Corp. (a) 2,209,700 93,360 Citrix Systems, Inc. (a) 541,500 23,758 Computer Learning Centers, Inc. 17,300 727 Computer Sciences Corp. (a) 153,000 11,035 DST Systems, Inc. 828,100 27,586 ECI Telecom Ltd. 443,900 13,206 Electronic Arts, Inc. (a) 121,600 4,089 Electronics for Imaging, Inc. 54,500 2,575 Engineering Animation, Inc. (a)(d) 320,200 10,807 Equifax, Inc. 1,339,600 49,816 First Data Corp. 1,507,000 66,214 GT Interactive Software, Inc. (a) 650,100 7,720 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) TECHNOLOGY - CONTINUED COMPUTER SERVICES & SOFTWARE - CONTINUED HBO & Co. 103,100 $ 7,101 Keane, Inc. (a) 533,400 27,737 Maxis, Inc. (a) 283,500 3,402 McAfee Associates, Inc. (a) 333,800 21,071 Metro Information Services, Inc. 26,900 531 Microsoft Corp. (a) 1,818,200 229,775 Netscape Communications Corp. (a) 107,600 3,450 New Era of Networks, Inc. 290,600 4,795 Ontrack Data International, Inc. 31,400 722 Open Market, Inc. (a) 422,400 5,597 Oracle Systems Corp. (a) 37,600 1,894 Paychex, Inc. 93,750 3,563 RWD Technologies, Inc. 29,700 512 Radiant Systems, Inc. 38,200 797 Saville Systems Ireland PLC sponsored ADR (a) 164,900 8,575 Scopus Technology, Inc. (a) 225,700 5,050 Simulation Sciences, Inc. 69,800 1,064 Symantec Corp. (a) 57,100 1,113 USCS International, Inc. (a) 191,000 6,255 Visio Corp. (a) 82,400 5,809 866,673 COMPUTERS & OFFICE EQUIPMENT - 2.3% Apex PC Solutions, Inc. 22,400 443 Bay Networks, Inc. (a) 44,800 1,190 Bell & Howell Co. (a) 154,200 4,751 Compaq Computer Corp. (a) 1,300,300 129,055 Comverse Technology, Inc. (a) 127,800 6,646 Creative Technology Corp. Ltd. (a) 321,800 5,471 Data General Corp. (a) 474,000 12,324 Dell Computer Corp. (a) 937,600 110,109 Diebold, Inc. 107,600 4,196 EMC Corp. (a) 3,675,600 143,348 International Business Machines Corp. 422,600 38,113 Kronos, Inc. (a)(d) 568,500 15,634 Pitney Bowes, Inc. 1,059,900 73,663 Procom Technology, Inc. 396,300 4,260 Quantum Corp. (a) 1,269,800 25,793 Seagate Technology (a) 4,500 158 Stratus Computer, Inc. (a) 242,900 12,145 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) TECHNOLOGY - CONTINUED COMPUTERS & OFFICE EQUIPMENT - CONTINUED Sun Microsystems, Inc. (a) 334,500 $ 12,450 Symbol Technologies, Inc. 1,214,800 40,848 640,597 ELECTRONIC INSTRUMENTS - 1.1% Applied Materials, Inc. (a) 806,100 57,081 KLA Instruments Corp. (a) 276,100 13,460 Novellus Systems, Inc. 1,200 104 Perkin-Elmer Corp. 1,249,100 99,382 Tektronix, Inc. 242,000 14,520 Teradyne, Inc. (a) 441,100 17,313 Thermo Electron Corp. (a) 1,925,300 65,460 Thermoquest Corp. (a) 50,400 781 Waters Corp. (a) 995,700 35,721 303,822 ELECTRONICS - 3.1% Altera Corp. (a) 811,000 40,955 Analog Devices, Inc. (a) 130,600 3,469 DII Group, Inc. 80,700 3,551 Etec Systems, Inc. (a) 42,600 1,826 Intel Corp. 776,400 110,103 KEMET Corp. (a) 140,000 3,483 Kent Electronics Corp. (a) 65,900 2,418 Lattice Semiconductor Corp. (a) 460,400 26,013 Linear Technology Corp. 275,300 14,247 MRV Communications, Inc. (a) 107,600 3,174 Maxim Integrated Products, Inc. (a) 461,800 26,265 Microchip Technology, Inc. (a) 267,850 7,969 Micron Technology, Inc. 2,265,100 90,462 Motorola, Inc. 1,055,700 80,233 National Semiconductor Corp. (a) 1,881,700 57,627 PMC-Sierra, Inc. (a) 305,300 8,014 Photronics, Inc. (a) 71,900 3,433 SGS Thomson Microelectronics NV 64,800 5,184 Sanmina Corp. (a) 47,100 2,991 Semtech Corp. (a)(d) 456,850 16,675 Solectron Corp. (a) 169,700 11,879 Sterling Commerce, Inc. 81,200 2,669 Storage Technology Corp. (a) 618,500 27,523 Texas Instruments, Inc. 3,358,200 282,299 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) TECHNOLOGY - CONTINUED ELECTRONICS - CONTINUED Vishay Intertechnology, Inc. 725 $ 21 Vitesse Semiconductor Corp. (a) 292,300 9,555 Zero Corp. (d) 652,000 17,115 859,153 PHOTOGRAPHIC EQUIPMENT - 0.2% Polaroid Corp. 1,099,000 60,995 TOTAL TECHNOLOGY 3,865,490 TRANSPORTATION - 1.1% AIR TRANSPORTATION - 0.3% Comair Holdings, Inc. 118,400 3,279 Continental Airlines, Inc. Class B (a) 1,492,700 52,151 Delta Air Lines, Inc. 298,500 24,477 Ryanair Holdings PLC sponsored ADR 115,400 3,130 Viad Corp. 375,700 7,232 90,269 RAILROADS - 0.3% Bombardier, Inc. Class B 647,800 14,686 CSX Corp. 223,600 12,410 Canadian Pacific Ltd. 23,100 658 Canadian National Railway Co. 152,400 6,645 Wisconsin Central Transportation Corp. (a) 1,326,100 49,397 83,796 TRUCKING & FREIGHT - 0.5% Air Express International Corp. 68,000 2,702 Airborne Freight Corp. 12,500 523 CNF Transportation, Inc. 1,478,200 47,672 Expeditors International of Washington, Inc. 327,100 9,281 Roadway Express, Inc. 193,600 4,525 Swift Transportation Co., Inc. (a) 380,700 11,231 USFreightways Corp. 865,000 22,382 Werner Enterprises, Inc. 31,100 603 XTRA Corp. 40,000 1,758 Yellow Corp. (a) 1,112,000 24,881 125,558 TOTAL TRANSPORTATION 299,623 COMMON STOCKS - CONTINUED SHARES VALUE (NOTE 1) (000S) UTILITIES - 2.9% CELLULAR - 0.3% Mobile Telecommunications Technologies, Inc. (a) 1,195,800 $ 17,115 Vodafone Group PLC sponsored ADR 1,122,900 54,390 71,505 ELECTRIC UTILITY - 0.5% Edison International 2,934,600 72,998 Korea Electric Power Corp. 57,640 1,720 National Grid Co. PLC 14,349,400 52,433 Ogden Corp. 80,700 1,755 128,906 GAS - 0.2% El Paso Natural Gas Co. 723,600 39,799 Enron Corp. 363,100 14,819 Sonat, Inc. 282,100 14,458 69,076 TELEPHONE SERVICES - 1.9% Brooks Fiber Properties, Inc. (a) 1,094,300 36,934 Cable & Wireless PLC Ord. 5,837,800 53,450 Cincinnati Bell, Inc. 234,900 7,399 Excel Communication, Inc. 174,200 5,008 MCI Communications Corp. 1,769,300 67,731 McLeodUSA, Inc. 1,164,800 39,312 Qwest Communications International, Inc. 389,000 10,600 Sprint Corp. 49,400 2,600 STAR Telecommunications, Inc. 428,600 5,679 Tel-Save Holdings, Inc. (a) 22,400 342 Telco Communications Group, Inc. 343,100 11,151 Teleport Communications Group, Inc. Class A (a) 887,300 30,279 US WEST Media Group (a) 940,600 19,047 WorldCom, Inc. (a) 7,963,700 254,838 544,370 TOTAL UTILITIES 813,857 TOTAL COMMON STOCKS (Cost $19,979,967) 25,506,223 PREFERRED STOCKS - 0.9% SHARES VALUE (NOTE 1) (000S) CONVERTIBLE PREFERRED STOCKS - 0.3% CONSTRUCTION & REAL ESTATE - 0.2% REAL ESTATE INVESTMENT TRUSTS - 0.2% Vornado Realty Trust, Series A, $3.25 1,058,300 $ 57,280 RETAIL & WHOLESALE - 0.1% APPAREL STORES - 0.1% TJX Companies, Inc., Series E, $7.00 73,500 20,948 TOTAL CONVERTIBLE PREFERRED STOCKS 78,228 NONCONVERTIBLE PREFERRED STOCKS - 0.6% TECHNOLOGY - 0.2% COMPUTER SERVICES & SOFTWARE - 0.2% SAP AG 256,200 52,840 UTILITIES - 0.4% TELEPHONE SERVICES - 0.4% Stet (Societa Finanziaria Telefonica) Spa 12,765,500 44,235 Telecom Italia Mobile Spa de Risp 37,958,900 67,377 111,612 TOTAL NONCONVERTIBLE PREFERRED STOCKS 164,452 TOTAL PREFERRED STOCKS (Cost $224,756) 242,680 CORPORATE BONDS - 0.1% MOODY'S PRINCIPAL AMOUNT VALUE (NOTE 1) RATINGS (C) (000S) (000S) HEALTH - 0.1% MEDICAL FACILITIES MANAGEMENT - 0.1% NovaCare, Inc. 5 1/2%, 1/15/00 B1 $ 15,450 $ 14,523 MEDIA & LEISURE - 0.0% BROADCASTING - 0.0% Home Shopping Network, Inc. 5 7/8%, 3/1/06 (e) B- 4,152 5,325 TECHNOLOGY - 0.0% ELECTRONICS - 0.0% National Semiconductor Corp. 6 1/2%, 10/1/02 (e) Ba2 12,640 13,035 TOTAL CORPORATE BONDS (Cost $28,713) 32,883 U.S. TREASURY OBLIGATIONS - 1.2% 7 5/8%, 2/15/25 Aaa 260,110 284,821 6 3/4%, 8/15/26 Aaa 44,000 43,546 TOTAL U.S. TREASURY OBLIGATIONS (Cost $335,557) 328,367 CASH EQUIVALENTS - 6.4% MATURITY AMOUNT (000S) Investments in repurchase agreements (U.S. Treasury obligations) in a joint trading account dated 6/30/97 due 7/1/97: at 5 7/8% $ 12,036 12,034 at 5.93% 21,313 21,309 SHARES Taxable Central Cash Fund (b) 1,761,666,294 1,761,666 TOTAL CASH EQUIVALENTS (Cost $1,795,009) 1,795,009 TOTAL INVESTMENT IN SECURITIES - 100% (Cost $22,364,002) $ 27,905,162 LEGEND 1. Non-income producing 2. At period end, the seven-day yield on the Taxable Central Cash Fund was 5.58%. The yield refers to the income earned by investing in the fund over the seven-day period, expressed as an annual percentage. 3. Standard & Poor's credit ratings are used in the absence of a rating by Moody's Investors Service, Inc. 4. Affiliated company (see Note 8 of Notes to Financial Statements). 5. Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At the period end, the value of these securities amounted to $44,922,000 or 0.2% of net assets. 6. Restricted securities - Investment in securities not registered under the Securities Act of 1933 (see Note 2 of Notes to Financial Statements). Additional information on each holding is as follows: ACQUISITION ACQUISITION SECURITY DATE COST (000S) Grand Palais Management Co., LP 7/24/96 $ -- OTHER INFORMATION Distribution of investments by country of issue, as a percentage of total value of investment in securities, is as follows: United States 83.6% Netherlands 4.2 United Kingdom 2.5 Canada 2.2 Switzerland 1.5 France 1.4 Bermuda 1.1 Others (individually less than 1%) 3.5 TOTAL 100.0% INCOME TAX INFORMATION At June 30, 1997, the aggregate cost of investment securities for income tax purposes was $22,382,099,000. Net unrealized appreciation aggregated $5,523,063,000, of which $5,802,295,000 related to appreciated investment securities and $279,232,000 related to depreciated investment securities. FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES
AMOUNTS IN THOUSANDS (EXCEPT PER-SHARE AMOUNT) JUNE 30, 1997 (UNAUDITED) ASSETS Investment in securities, at value (including repurchase $ 27,905,162 agreements of $33,343) (cost $22,364,002) - See accompanying schedule Receivable for investments sold 505,563 Receivable for fund shares sold 66,104 Dividends receivable 26,465 Interest receivable 17,406 Other receivables 755 TOTAL ASSETS 28,521,455 LIABILITIES Payable to custodian bank $ 495 Payable for investments purchased 347,287 Payable for fund shares redeemed 65,605 Accrued management fee 10,881 Other payables and accrued expenses 5,241 Collateral on securities loaned, at value 499,124 TOTAL LIABILITIES 928,633 NET ASSETS $ 27,592,822 Net Assets consist of: Paid in capital $ 20,828,368 Undistributed net investment income 146,469 Accumulated undistributed net realized gain (loss) on 1,076,867 investments and foreign currency transactions Net unrealized appreciation (depreciation) on 5,541,118 investments and assets and liabilities in foreign currencies NET ASSETS, for 598,406 shares outstanding $ 27,592,822 NET ASSET VALUE and redemption price per $46.11 share ($27,592,822 (divided by) 598,406 shares) Maximum offering price per share (100/97.00 of $46.11) $47.54
STATEMENT OF OPERATIONS
AMOUNTS IN THOUSANDS SIX MONTHS ENDED JUNE 30, 1997 (UNAUDITED) INVESTMENT INCOME $ 150,776 Dividends (including $4,710 received from affiliated issuers) Interest (including income on securities loaned of $55) 84,238 TOTAL INCOME 235,014 EXPENSES Management fee $ 76,501 Basic fee Performance adjustment (14,516) Transfer agent fees 26,689 Accounting and security lending fees 511 Non-interested trustees' compensation 57 Custodian fees and expenses 826 Registration fees 859 Audit 113 Legal 40 Interest 3 Miscellaneous 45 Total expenses before reductions 91,128 Expense reductions (5,024) 86,104 NET INVESTMENT INCOME 148,910 REALIZED AND UNREALIZED GAIN (LOSS) Net realized gain (loss) on: Investment securities (including realized gain of 1,156,838 $55,485 on sales of investments in affiliated issuers) Foreign currency transactions (164) 1,156,674 Change in net unrealized appreciation (depreciation) on: Investment securities 1,458,463 Assets and liabilities in foreign currencies (39) 1,458,424 NET GAIN (LOSS) 2,615,098 NET INCREASE (DECREASE) IN NET ASSETS RESULTING $ 2,764,008 FROM OPERATIONS
STATEMENT OF CHANGES IN NET ASSETS
AMOUNTS IN THOUSANDS SIX MONTHS YEAR ENDED ENDED DECEMBER 31, JUNE 30, 1997 1996 (UNAUDITED) INCREASE (DECREASE) IN NET ASSETS Operations $ 148,910 $ 247,680 Net investment income Net realized gain (loss) 1,156,674 1,301,229 Change in net unrealized appreciation (depreciation) 1,458,424 2,377,237 NET INCREASE (DECREASE) IN NET ASSETS RESULTING 2,764,008 3,926,146 FROM OPERATIONS Distributions to shareholders - (205,408) From net investment income From net realized gain (413,188) (1,597,799) TOTAL DISTRIBUTIONS (413,188) (1,803,207) Share transactions 4,471,326 9,573,613 Net proceeds from sales of shares Reinvestment of distributions 407,672 1,776,511 Cost of shares redeemed (3,465,820) (4,502,101) NET INCREASE (DECREASE) IN NET ASSETS RESULTING 1,413,178 6,848,023 FROM SHARE TRANSACTIONS TOTAL INCREASE (DECREASE) IN NET ASSETS 3,763,998 8,970,962 NET ASSETS Beginning of period 23,828,824 14,857,862 End of period (including undistributed net investment $ 27,592,822 $ 23,828,824 income of $146,469 and $40,761, respectively) OTHER INFORMATION Shares Sold 104,200 242,915 Issued in reinvestment of distributions 9,583 44,832 Redeemed (80,749) (113,133) Net increase (decrease) 33,034 174,614
FINANCIAL HIGHLIGHTS SIX MONTHS YEARS ENDED DECEMBER 31, ENDED JUNE 30, 1997 (UNAUDITED) 1996 1995 1994 1993 E 1992 SELECTED PER-SHARE DATA Net asset value, $ 42.15 $ 38.02 $ 30.28 $ 30.84 $ 27.47 $ 25.60 beginning of period Income from Investment Operations Net investment .25 D .46 .03 .06 .14 .32 D income Net realized and 4.42 7.50 10.93 (.40) 5.66 3.67 unrealized gain (loss) Total from investment 4.67 7.96 10.96 (.34) 5.80 3.99 operations Less Distributions - (.38) (.09) - (.11) (.20) From net investment income In excess of net - - - - (.07) - investment income From net realized (.71) (3.45) (3.13) (.22) (2.25) (1.92) gain Total distributions (.71) (3.83) (3.22) (.22) (2.43) (2.12) Net asset value, end $ 46.11 $ 42.15 $ 38.02 $ 30.28 $ 30.84 $ 27.47 of period TOTAL RETURN B, C 11.22% 21.94% 36.28% (1.12) 21.43% 15.89 % % RATIOS AND SUPPLEMENTAL DATA Net assets, end of $ 27,593 $ 23,829 $ 14,858 $ 8,694 $ 6,208 $ 1,986 period (in millions) Ratio of expenses to .72% A .83% .98% 1.03% 1.08% .87 average net assets % Ratio of expenses to .68% A .79% .96% 1.00% 1.06% .87 average net assets , F F F F F % after expense reductions Ratio of net investment 1.18% A 1.28% .44% .59% .46% 1.19 income to average % net assets Portfolio turnover rate 165% A 159% 223% 235% 255% 297 % Average commission $ .0346 $ .0358 rate G A ANNUALIZED B THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E EFFECTIVE JANUARY 1, 1993, THE FUND ADOPTED STATEMENT OF POSITION 93-2, "DETERMINATION, DISCLOSURE, AND FINANCIAL STATEMENT PRESENTATION OF INCOME, CAPITAL GAIN, AND RETURN OF CAPITAL DISTRIBUTIONS BY INVESTMENT COMPANIES." AS A RESULT, NET INVESTMENT INCOME PER SHARE MAY REFLECT CERTAIN RECLASSIFICATIONS RELATED TO BOOK TO TAX DIFFERENCES. F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES (SEE NOTE 7 OF NOTES TO FINANCIAL STATEMENTS). G FOR FISCAL YEARS BEGINNING ON OR AFTER SEPTEMBER 1, 1995, A FUND IS REQUIRED TO DISCLOSE ITS AVERAGE COMMISSION RATE PER SHARE FOR SECURITY TRADES ON WHICH COMMISSIONS ARE CHARGED. THIS AMOUNT MAY VARY FROM PERIOD TO PERIOD AND FUND TO FUND DEPENDING ON THE MIX OF TRADES EXECUTED IN VARIOUS MARKETS WHERE TRADING PRACTICES AND COMMISSION RATE STRUCTURES MAY DIFFER.
NOTES TO FINANCIAL STATEMENTS For the period ended June 30, 1997 (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES. Fidelity Contrafund (the fund) 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 and is authorized to issue an unlimited number of shares. The financial statements have been prepared in conformity with generally accepted accounting principles which permit management to make certain estimates and assumptions at the date of the financial statements. The following summarizes the significant accounting policies of the fund: SECURITY VALUATION. Securities for which exchange quotations are readily available are valued at the last sale price, or if no sale price, at the closing bid price. Securities (including restricted securities) for which exchange quotations are not readily available (and in certain cases debt securities which trade on an exchange) are valued primarily using dealer-supplied valuations or at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which quotations are not readily available are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the prevailing rates of exchange at period end. Income receipts and expense payments are translated into U.S. dollars at the prevailing exchange rate on the respective dates of the transactions. Purchases and sales of securities are translated into U.S. dollars at the contractual currency exchange rates established at the time of each trade. Net realized gains and losses on foreign currency transactions represent net gains and losses from sales and maturities of forward currency contracts, disposition of foreign currencies, and the difference between the amount of net investment income accrued and the U.S. dollar amount actually received. The effects of changes in foreign currency exchange rates on investments in securities are included with the net realized and unrealized gain or loss on investment securities. INCOME TAXES. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not subject to income taxes to the extent that it distributes substantially all of its taxable income for its fiscal year. The schedule of investments includes information regarding income taxes under the caption "Income Tax Information." INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, are recorded as soon as the fund is informed of the ex-dividend date. Non-cash dividends included in dividend income, if any, are recorded at 1. SIGNIFICANT ACCOUNTING POLICIES - CONTINUED INVESTMENT INCOME - CONTINUED the fair market value of the securities received. Interest income is accrued as earned. Investment income is recorded net of foreign taxes withheld where recovery of such taxes is uncertain. DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences, which may result in distribution reclassifications, are primarily due to differing treatments for litigation proceeds, options transactions, foreign currency transactions, passive foreign investment companies (PFIC), non-taxable dividends, and losses deferred due to wash sales. The fund also utilized earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital and may affect the per-share allocation between net investment income and realized and unrealized gain (loss). Undistributed net investment income and accumulated undistributed net realized gain (loss) on investments and foreign currency transactions may include temporary book and tax basis differences which will reverse in a subsequent period. Any taxable income or gain remaining at fiscal year end is distributed in the following year. SECURITY TRANSACTIONS. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. 2. OPERATING POLICIES. FOREIGN CURRENCY CONTRACTS. The fund generally uses foreign currency contracts to facilitate transactions in foreign-denominated securities. Losses may arise from changes in the value of the foreign currency or if the counterparties do not perform under the contracts' terms. The U.S. dollar value of foreign currency contracts is determined using contractual currency exchange rates established at the time of each trade. The cost of the foreign currency contracts is included in the cost basis of the associated investment. JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission (the SEC), the fund, along with other affiliated entities of Fidelity Management & Research Company (FMR), may transfer uninvested cash balances into one or more joint trading accounts. These balances are invested in one or more repurchase agreements for U.S. Treasury or Federal Agency obligations. REPURCHASE AGREEMENTS. The underlying U.S. Treasury or Federal Agency securities are transferred to an account of the fund, or to the Joint Trading Account, at a bank custodian. The 2. OPERATING POLICIES - CONTINUED REPURCHASE AGREEMENTS - CONTINUED securities are marked-to-market daily and maintained at a value at least equal to the principal amount of the repurchase agreement (including accrued interest). FMR, the fund's investment adviser, is responsible for determining that the value of the underlying securities remains in accordance with the market value requirements stated above. TAXABLE CENTRAL CASH FUND. Pursuant to an Exemptive Order issued by the SEC, the fund may invest in the Taxable Central Cash Fund (the Cash Fund) managed by FMR Texas, an affiliate of FMR. The Cash Fund is an open-end money market fund available only to investment companies and other accounts managed by FMR and its affiliates. The Cash Fund seeks preservation of capital, liquidity, and current income by investing in U.S. Treasury securities and repurchase agreements for these securities. Income distributions from the Cash Fund are declared daily and paid monthly from net interest income. Income distributions received by the fund are recorded as interest income in the accompanying financial statements. RESTRICTED SECURITIES. The fund is permitted to invest in securities that are subject to legal or contractual restrictions on resale. These securities generally may be resold in transactions exempt from registration or to the public if the securities are registered. Disposal of these securities may involve time-consuming negotiations and expense, and prompt sale at an acceptable price may be difficult. At the end of the period, restricted securities (excluding 144A issues) amounted to $0. 3. PURCHASES AND SALES OF INVESTMENTS. Purchases and sales of securities, other than short-term securities, aggregated $20,480,350,000 and $19,328,236,000, respectively, of which U.S. government and government agency obligations aggregated $0 and $763,523,000, respectively. 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly basic fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of the fund. The group fee rate is the weighted average of a series of rates and is based on the monthly average net assets of all the mutual funds advised by FMR. The rates ranged from .2500% to .5200% for the period. The annual individual fund fee rate is .30%. In the event that these rates were lower than the contractual rates in effect during the period, FMR voluntarily implemented the above rates, as they resulted in the same or a lower management fee. The basic fee is subject to a performance adjustment (up to a maximum of ".20% of the fund's average net assets over the performance period) based on the fund's 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES - CONTINUED MANAGEMENT FEE - CONTINUED investment performance as compared to the appropriate index over a specified period of time. For the period, the management fee was equivalent to an annualized rate of .49% of average net assets after the performance adjustment. SALES LOAD. For the period, Fidelity Distributors Corporation (FDC), an affiliate of FMR and the general distributor of the fund, received sales charges of $5,324,000 on sales of shares of the fund. TRANSFER AGENT FEES. Fidelity Service Company, Inc. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives account fees and asset-based fees that vary according to account size and type of account. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. For the period, the transfer agent fees were equivalent to an annualized rate of .21% of average net assets. ACCOUNTING AND SECURITY LENDING FEES. FSC maintains the fund's accounting records and administers the security lending program. The security lending fee is based on the number and duration of lending transactions. The accounting fee is based on the level of average net assets for the month plus out-of-pocket expenses. BROKERAGE COMMISSIONS. The fund placed a portion of its portfolio transactions with brokerage firms which are affiliates of FMR. The commissions paid to these affiliated firms were $6,415,000 for the period. 5. SECURITY LENDING. The fund loaned securities to certain brokers who paid the fund negotiated lenders' fees. These fees are included in interest income. The fund receives U.S. Treasury obligations and/or cash as collateral against the loaned securities, in an amount at least equal to 102% of the market value of the loaned securities at the inception of each loan. This collateral must be maintained at not less than 100% of the market value of the loaned securities during the period of the loan. At period end, the value of the securities loaned and the value of collateral amounted to $478,785,000 and $499,124,000, respectively. 6. BANK BORROWINGS. The fund is permitted to have bank borrowings for temporary or emergency purposes to fund shareholder redemptions. The fund has established borrowing arrangements with certain banks. Under the most restrictive arrangement, the fund must pledge to the bank securities having a market value in excess of 220% of the total bank borrowings. The interest rate on the borrowings is the bank's base rate, as revised from time to time. The maximum loan and the average daily loan balances during the period for which loans were outstanding amounted to $9,981,000 and $8,389,500, respectively. The weighted average interest rate was 5.56%. 7. EXPENSE REDUCTIONS. FMR has directed certain portfolio trades to brokers who paid a portion of the fund's expenses. For the period, the fund's expenses were reduced by $4,428,000 under this arrangement. In addition, the fund has entered into arrangements with its custodian and transfer agent whereby credits realized as a result of uninvested cash balances were used to reduce a portion of the fund's expenses. During the period, the fund's custodian and transfer agent fees were reduced by $10,000 and $586,000, respectively, under these arrangements. 8. TRANSACTIONS WITH AFFILIATED COMPANIES. An affiliated company is a company in which the fund has ownership of at least 5% of the voting securities. Transactions during the period with companies which are or were affiliates are as follows: SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND AFFILIATE COST COST INCOME VALUE American Exploration Co. $ - $ - $ - $ - APAC Teleservices, Inc. 55,177 6,793 - 86,061 Applied Magnetics Corp. - 2,916 - - Bedford Property Investors, Inc. 5,993 2,298 397 13,912 Big Flower Press Holdings, Inc. 33,900 - - 35,136 BJ Services Co. - 1,393 - - Budget Group, Inc. Class A 4,513 1,255 - 32,340 Cambrex Corp. 5,830 - 33 31,766 Camco International, Inc. - 11,971 200 - Cato Corp. Class A - 7,804 36 - Charming Shoppes, Inc. 3,245 - - 55,003 Cooper Cameron Corp. - - - - Consolidated Cigar Holdings, Inc. Class A 13,357 - - 24,143 Cross-Continent Auto Retailers, Inc. 1,474 213 - - Dominick's Supermarkets, Inc. 12,226 - - 37,712 Education Management Corp. - - - - Engineering Animation, Inc. 9,577 270 - 10,807 ENSCO International, Inc. 17,355 63,959 - 221,930 Franco-Nevada Mining Corp. 1,992 - 935 100,586 Golf Trust of America, Inc. 6,258 1,250 65 10,655 Goody's Family Clothing 2,915 4,098 - 38,826 Integrated Health Services, Inc. 14,965 - - 64,838 Kaydon Corp. - 3,831 144 51,218 Kronos, Inc. - 5,713 - 15,634 Mazel Stores, Inc. - - - - Midway Games, Inc. - - - - Nabors Industries, Inc. - 17,944 - - National-Oilwell, Inc. - - - - New Holland NV 10,049 3,938 1,303 77,748 Newfield Exploration Co. 1,062 13,145 - 37,726 O'Gara Co. - - - - 8. TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED SUMMARY OF TRANSACTIONS WITH AFFILIATED COMPANIES - CONTINUED AMOUNTS IN THOUSANDS PURCHASE SALES DIVIDEND AFFILIATE COST COST INCOME VALUE Ontrack Data International, Inc. $ - $ - $ - $ - Pogo Producing Co. - 9,170 86 - Procom Technology, Inc. - - - - Quality Food Centers, Inc. 8,922 - - 47,489 Richfood Holdings, Inc. Class A 1,471 8,699 191 76,504 SPX Corp. - 4,383 111 62,492 Security-Connecticut Corp. 12,078 - 445 34,139 Semtech Corp. 6,292 - - 16,675 Silgan Holdings, Inc. 3,646 411 - 12,617 Smartalk Teleservices, Inc. - 2,341 - - Smedvig AS 4,935 7,785 - - Smith International, Inc. 5,889 20,931 - 193,252 Snyder Communications, Inc. - - - - Starwood Lodging Trust combined certificate (SBI) 4,869 - 702 102,284 Sunrise Assisted Living, Inc. 3,447 - - 36,715 Swisher International Group, Inc. 368 242 - 9,751 Telespectrum Worldwide, Inc. 4,219 3,643 - - Tongkah Holdings BHD - - - 18,304 United Auto Group, Inc. 1,518 553 - - United Meridian Corp. - 23,635 - - Varco International, Inc. - 4,973 - - Vintage Petroleum, Inc. - - 24 - Zero Corp. 1,610 795 38 17,115 TOTALS $ 259,152 $ 236,352 $ 4,710 $ 1,573,378 MANAGING YOUR INVESTMENTS Fidelity offers several ways to conveniently manage your personal investments via your telephone or PC. You can access your account information, conduct trades and research your investments 24 hours a day. BY PHONE Fidelity TouchTone Xpressprovides a single toll-free number to access account balances, positions, quotes and trading. It's easy to navigate the service, and on your first call, the system will help you create a personal identification number (PIN) for security. SM (PHONE_GRAPHIC)TOUCHTONE XPRESS 1-800-544-5555 PRESS For mutual fund and brokerage trading. 1 For quotes.* 2 For account balances and holdings. 3 To review orders and mutual fund activity. 4 To change your PIN. 5 To speak to a Fidelity representative. * 0 BY PC Fidelity's Web site on the Internet provides a wide range of information, including daily financial news, fund performance, interactive planning tools and news about Fidelity products and services. (PHONE_GRAPHIC)FIDELITY'S WEB SITE WWW.FIDELITY.COM If you are not currently on the Internet, call Fidelity at 1-800-544-7272 for significant savings on Web access from internetMCI. SM (PHONE_GRAPHIC) FIDELITY ON-LINE XPRESS+ TM Fidelity On-line Xpress+ software for Windows combines comprehensive portfolio management capabilities, securities trading and access to research and analysis tools . . . all on your desktop. Call Fidelity at 1-800-544-7272 or visit our Web site for more information on how to manage your investments via your PC. * WHEN YOU CALL THE QUOTES LINE, PLEASE REMEMBER THAT A FUND'S YIELD AND RETURN WILL VARY AND, EXCEPT FOR MONEY MARKET FUNDS, SHARE PRICE WILL ALSO VARY. THIS MEANS THAT YOU MAY HAVE A GAIN OR LOSS WHEN YOU SELL YOUR SHARES. THERE IS NO ASSURANCE THAT MONEY MARKET FUNDS WILL BE ABLE TO MAINTAIN A STABLE $1 SHARE PRICE; AN INVESTMENT IN A MONEY MARKET FUND IS NOT INSURED OR GUARANTEED BY THE U.S. GOVERNMENT. TOTAL RETURNS ARE HISTORICAL AND INCLUDE CHANGES IN SHARE PRICE, REINVESTMENT OF DIVIDENDS AND CAPITAL GAINS, AND THE EFFECTS OF ANY SALES CHARGES. INVESTMENT ADVISER Fidelity Management & Research Company Boston, MA INVESTMENT SUB-ADVISERS Fidelity Management & Research (U.K.) Inc., London, England Fidelity Management & Research (Far East) Inc., Tokyo, Japan OFFICERS Edward C. Johnson 3d, President Robert C. Pozen, Senior Vice President William J. Hayes, Vice President Abigail Johnson, Vice President Will Danoff, Vice President Arthur S. Loring, Secretary Richard A. Silver, Treasurer Robert H. Morrison, Manager, Security Transactions John H. Costello, Assistant Treasurer Leonard M. Rush, Assistant Treasurer BOARD OF TRUSTEES Ralph F. Cox * Phyllis Burke Davis * Robert M. Gates * Edward C. Johnson 3d E. Bradley Jones * Donald J. Kirk * Peter S. Lynch Marvin L. Mann * William O. McCoy * Gerald C. McDonough * Robert C. Pozen Thomas R. Williams * ADVISORY BOARD J. Gary Burkhead GENERAL DISTRIBUTOR Fidelity Distributors Corporation Boston, MA * INDEPENDENT TRUSTEES TRANSFER AND SHAREHOLDER SERVICING AGENT Fidelity Service Company, Inc. Boston, MA CUSTODIAN Brown Brothers Harriman & Co. 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