-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, rjQ42uN+quUoOp+GH02O3WuS0G+gbLR+o2cj2SdYrm8E2DLEfJYfApYddyqJaKO7 zKhvDJbYPvdYTeYamP6cKg== 0000035348-94-000015.txt : 19940513 0000035348-94-000015.hdr.sgml : 19940513 ACCESSION NUMBER: 0000035348-94-000015 CONFORMED SUBMISSION TYPE: N-30B-2 PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 19940225 FILED AS OF DATE: 19940509 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY SELECT PORTFOLIOS CENTRAL INDEX KEY: 0000320351 STANDARD INDUSTRIAL CLASSIFICATION: 0000 IRS NUMBER: 042732797 STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: N-30B-2 SEC ACT: 1940 Act SEC FILE NUMBER: 811-03114 FILM NUMBER: 94526703 BUSINESS ADDRESS: STREET 1: 82 DEVONSHIRE ST CITY: BOSTON STATE: MA ZIP: 02109 BUSINESS PHONE: 6174391263 MAIL ADDRESS: STREET 1: 82 DEVONSHIRE STREET STREET 2: MAIL ZONE ZZ2 CITY: BOSTON STATE: MA ZIP: 02109 N-30B-2 1 (2_FIDELITY_LOGOS)FIDELITY SELECT PORTFOLIOS(REGISTERED TRADEMARK):ELECTRIC UTILITIES PORTFOLIO ANNUAL REPORT FEBRUARY 25, 1994 ELECTRIC UTILITIES PORTFOLIO FINANCIAL STATEMENTS STATEMENT OF ASSETS AND LIABILITIES FEBRUARY 25, 1994 (UNAUDITED) ASSETS Cash $ 287,766 Dividends receivable 110,790 TOTAL ASSETS 398,556 LIABILITIES Payable for fund shares redeemed $ 359,031 Accrued management fee 9,063 Other payables and accrued expenses 30,462 TOTAL LIABILITIES 398,556 NET ASSETS $ 0 THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS. STATEMENT OF OPERATIONS
PERIOD ENDED FEBRUARY 25, 1994 (UNAUDITED) INVESTMENT INCOME $ 1,132,241 Dividends Interest 50,329 TOTAL INCOME 1,182,570 EXPENSES Management fee (Note 4) $ 170,119 Transfer agent (Note 4) 219,867 Fees Redemption fees (Note 1) (25,179 ) Accounting fees (Note 4) 45,530 Non-Interested trustees' compensation 203 Custodian fees and expenses 12,988 Registration fees 13,192 Audit 853 Legal 391 Interest (Note 5) 122 Reports to shareholders 18,179 Miscellaneous 421 Total Expense 456,686 NET INVESTMENT INCOME 725,884 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS (NOTES 1 AND 2) 2,779,021 Net realized gain (loss) on investment securities Change in net unrealized appreciation (depreciation) on investment securities (3,352,828 ) NET GAIN (LOSS) (573,807 ) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS $ 152,077
STATEMENT OF CHANGES IN NET ASSETS
INCREASE (DECREASE) IN NET ASSETS PERIOD ENDED TEN MONTHS FEBRUARY 25, ENDED 1994 FEBRUARY 28, (UNAUDITED) 1993 Operations $ 725,884 $ 811,957 Net investment income Net realized gain (loss) on investments 2,779,021 1,661,761 Change in net unrealized appreciation (depreciation) on investments (3,352,828 2,914,650 ) NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS 152,077 5,388,368 Distributions to shareholders (737,056 (900,760 From net investment income ) ) From net realized gain (2,511,122 (2,034,533 ) ) TOTAL DISTRIBUTIONS (3,248,178 (2,935,293 ) ) Share transactions 18,745,507 25,231,156 Net proceeds from sales of shares Reinvestment of distributions 3,142,549 2,872,137 Cost of shares redeemed (32,763,232 (25,554,805 ) ) Paid in capital portion of redemption fees (Note 1) 30,395 21,752 Net asset value of shares redeemed in exchange for the net assets of Fidelity Select Utilities Portfolio (16,679,364 - (Note 6) ) Net increase (decrease) in net assets resulting from share transactions (27,524,145 2,570,240 ) TOTAL INCREASE (DECREASE) IN NET ASSETS (30,620,246 5,023,315 ) NET ASSETS Beginning of period 30,620,246 25,596,931 End of period (including undistributed net investment income of $0 and $927,148, respectively) $ - $ 30,620,246 OTHER INFORMATION Shares Sold 1,341,006 1,966,497 Issued in reinvestment of distributions 252,272 232,620 Redeemed (2,377,936 (1,982,163 ) ) Redeemed by shareholders in exchange for shares of Fidelity Select Utilities Portfolio (Note 6) (1,447,861 - ) Net increase (decrease) (2,232,519) 216,954
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THE FINANCIAL STATEMENTS.
FINANCIAL HIGHLIGHTS
PERIOD ENDED TEN MONTHS YEARS ENDED APRIL 30, FEBRUARY 25, ENDED FEBRUARY 28, SELECTED PER-SHARE DATA B 1994 1993 1992 1991 1990 (UNAUDITED) Net asset value, beginning of period $ 13.72 $ 12.70 $ 11.71 $ 10.37 $ 9.58 Income from Investment Operations Net investment income .34 .34 .44 .45 .41 Net realized and unrealized gain (loss) on investments(.13) 2.12 1.32 1.18 .59 Total from investment operations (.21) 2.46 1.76 1.63 1.00 Less Distributions From net investment income (.43) (.44) (.50) (.15) (.22) From net realized gain (1.57) (1.01) (.31) (.16) - Total distributions (2.00) (1.45) (.81) (.31) (.22) Redemption fees added to paid in capital .01 .01 .04 .02 .01 Net asset value, end of period $ 11.52 $ 13.72 $ 12.70 $ 11.70 $ 10.37 TOTAL RETURN C (1.85)% 21.09% 16.16% 16.21% 10.47% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period (000 omitted) $ - $ 30,620 $ 25,597 $ 24,072 $ 23,311 Ratio of expenses to average net assets 1.66%A 1.70%A 1.83% 2.27% 2.30% Ratio of net investment income to average net assets 2.64%A 3.20%A 3.63% 4.17% 3.80% Portfolio turnover rate 5%A 55%A 76% 50% 62%
1 ANNUALIZED 2 NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING EACH PERIOD. 3 TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. NOTES TO FINANCIAL STATEMENTS For the period ended February 25, 1994 (Unaudited) 1. SIGNIFICANT ACCOUNTING POLICIES. Fidelity Select Portfolios (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 trust has thirty-five equity funds (the fund or the funds) which invest primarily in securities of companies whose principal business activities fall within specific industries, and a money market fund which invests in high quality money market instruments. Each fund is authorized to issue an unlimited number of shares. Financial information is presented for Electric Utilities Portfolio which was merged into Utilities Portfolio as of the close of business on February 25, 1994 (see Note 6). The following summarizes the significant accounting policies of the funds: SECURITY VALUATION. Securities for which exchange quotations are readily available are valued at the last sale price, or if no sale price, at the closing bid price. Securities for which exchange quotations are not readily available (and in certain cases debt securities which trade on an exchange), are valued primarily using dealer-supplied valuations or at their fair value as determined in good faith under consistently applied procedures under the general supervision of the Board of Trustees. Short-term securities maturing within sixty days are valued at amortized cost or original cost plus accrued interest, both of which approximate current value. FOREIGN CURRENCY TRANSLATION. The accounting records of the fund are maintained in U.S. dollars. Investment securities and other assets and liabilities denominated in a foreign currency are translated into U.S. dollars at the current exchange rate. Purchases and sales of securities, income receipts and expense payments are translated into U.S. dollars at the exchange rate on the dates of the transactions. It is not practical to identify the portion of each amount shown in the fund's Statement of Operations under the caption "Realized and Unrealized Gain (Loss) on Investments" that arises from changes in foreign currency exchange rates. Investment income includes net realized and unrealized currency gains and losses recognized between accrual and payment dates. INCOME TAXES. As a qualified regulated investment company under Subchapter M of the Internal Revenue Code, the fund is not subject to income taxes to the extent that it distributes all of its taxable income for the fiscal year. INVESTMENT INCOME. Dividend income is recorded on the ex-dividend date, except certain dividends from foreign securities where the ex-dividend date may have passed, are recorded as soon as the fund is informed of the ex-dividend date. Interest income, which includes accretion of original issue discount, is accrued as earned. Dividend and interest income is recorded net of foreign taxes where recovery of such taxes is not assured. EXPENSES. Most expenses of the trust can be directly attributed to a fund. Expenses which cannot be directly attributed are apportioned between the funds in the trust. DISTRIBUTIONS TO SHAREHOLDERS. Distributions are recorded on the ex-dividend date. Income and capital gain distributions are determined in accordance with income tax regulations which may differ from generally accepted accounting principles. These differences are primarily due to differing treatments for partnerships, non-taxable dividends, net operating losses, expiring capital loss carryforwards and losses deferred due to wash sales and excise tax regulations. The fund may also utilize earnings and profits distributed to shareholders on redemption of shares as a part of the dividends paid deduction for income tax purposes. Permanent book and tax basis differences relating to shareholder distributions will result in reclassifications to paid in capital. REDEMPTION FEES. Shares redeemed (including exchanges) from an equity fund are subject to redemption fees. Shares held less than 30 days are subject to a short-term redemption fee equal to .75% of the net asset value of shares redeemed. Shares held 30 days or more are subject to a long-term redemption fee equal to the lesser of $7.50 or .75% of the net asset value of shares redeemed. The long-term redemption fee and the first $7.50 of the short-term redemption fee are accounted for as a reduction of transfer agent expenses. This portion of the redemption fee is used to offset the transaction costs and other expenses that short-term trading imposes on each fund and its shareholders. The remainder of the short-term redemption fee is accounted for as an addition to paid in capital. SECURITY TRANSACTIONS. Security transactions are accounted for as of trade date. Gains and losses on securities sold are determined on the basis of identified cost. CHANGE IN ACCOUNTING FOR DISTRIBUTIONS TO SHAREHOLDERS. Effective March 1, 1993, the funds adopted Statement of Position 93-2: Determination, Disclosure, and Financial Statement Presentation of Income, Capital Gain, and Return of Capital Distributions by Investment Companies. As a result, the fund changed the classification of distributions to shareholders to better disclose the differences between financial statement amounts and distributions determined in accordance with income tax regulations. Accordingly, amounts as of February 28, 1993 have been restated to reflect an increase in paid in capital of $1,276,153, a decrease in undistributed net investment income of $658,012 and a decrease in accumulated net realized gain on investments of $618,141. 2. OPERATING POLICIES. REPURCHASE AGREEMENTS. The fund, through its custodian, receives delivery of the underlying securities, whose market value is required to be at least 102% of the resale price at the time of purchase. The fund's investment adviser, Fidelity Management & Research Company (FMR), is responsible for determining that the value of these underlying securities remains at least equal to the resale price. JOINT TRADING ACCOUNT. Pursuant to an Exemptive Order issued by the Securities and Exchange Commission, the fund, along with other registered investment companies having management contracts with FMR, may transfer uninvested cash balances into a joint trading account. These balances are invested in one or more repurchase agreements that are collateralized by U.S. Treasury or Federal Agency obligations. 3. PURCHASES AND SALES OF INVESTMENTS. Purchases and sales of securities, other than short-term securities, aggregated $1,273,456 and $13,383,289, respectively. 4. FEES AND OTHER TRANSACTIONS WITH AFFILIATES. MANAGEMENT FEE. As the fund's investment adviser, FMR receives a monthly fee that is calculated on the basis of a group fee rate plus a fixed individual fund fee rate applied to the average net assets of each fund. The group fee rate is the weighted average of a series of rates ranging from .30% to .52% and is based on the monthly average net assets of all the mutual funds advised by FMR. The annual individual fund fee rate is .30%. On December 12, 1991, the Board of Trustees approved a new group fee rate schedule with rates ranging from .30% to .52%. Effective January 1, 1992, FMR voluntarily agreed to implement the new group fee rate schedule as it resulted in the same or a lower management fee. On November 1, 1993, FMR has voluntarily agreed to implement a revised group fee rate schedule with rates ranging from .2850% to .5200%. On February 16, 1994, the shareholders of the fund approved this new group fee rate schedule. For the period, the management fee was equivalent to an annualized rate of .62% of average net assets. SALES LOAD. Fidelity Distributors Corporation (FDC), an affiliate of FMR, is the general distributor the fund. FDC is paid a 3% sales charge on sales of shares of the fund. Prior to October 12, 1990, FDC was paid a 2% sales charge and a 1% deferred sales charge. Shares purchased before October 12, 1990 are subject to the deferred sales charge upon redemption or exchange to any other Fidelity fund (other than Select funds). The amounts received by FDC for sales charges and deferred sales charges are $126,054 and $15,651, respectively. TRANSFER AGENT FEE. Fidelity Service Co. (FSC), an affiliate of FMR, is the fund's transfer, dividend disbursing and shareholder servicing agent. FSC receives fees based on the type, size, number of accounts and the number of transactions made by shareholders. FSC pays for typesetting, printing and mailing of all shareholder reports, except proxy statements. ACCOUNTING FEES. FSC maintains the fund's accounting records and administers their 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. EXCHANGE FEES. FSC charges an exchange fee of $7.50 to cover administrative costs associated with exchanges out of an equity fund to any other Fidelity Select fund or to any other Fidelity fund. The exchange fees retained by FSC were $34,995 for the period. 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 $3,466 for the period. 5. 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. At the period end, the maximum loan and average daily loan balances during the periods for which loans were outstanding amounted to $1,154,000. The weighted average interest rate was 3.8%. 6. MERGERS. Pursuant to an Agreement and Plan of Reorganization approved by the shareholders of Electric Utilities Portfolio at a meeting held on February 16, 1994, Utilities Portfolio acquired substantially all of the assets of the Electric Utilities Portfolio on February 25, 1994. The acquisition was accomplished by a tax-free exchange of assets of Electric Utilities Portfolio in exchange for 458,728 shares of Utilities Portfolio (valued at $36.36 per share). Electric Utilities Portfolio's net assets at that date (valued at $16,679,364, including $1,838,111 of unrealized appreciation) were combined with those of Utilities Portfolio. The aggregate net assets of Utilities Portfolio and Electric Utilities Portfolio immediately before the acquisition were $233,107,469 and $16,679,364, respectively. -----END PRIVACY-ENHANCED MESSAGE-----