-----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, ZgoP9XgsG/deCUImID8ouRYhDxjOiLlL9XlcH5y7jImNBZHd5TXI7BiXKyw4Ojrk 7zjn0hCYBjCcbjiDZBfXwA== 0000225323-94-000016.txt : 19940215 0000225323-94-000016.hdr.sgml : 19940215 ACCESSION NUMBER: 0000225323-94-000016 CONFORMED SUBMISSION TYPE: 485APOS PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 19940214 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: 1031 FILING VALUES: FORM TYPE: 485APOS SEC ACT: 33 SEC FILE NUMBER: 002-69972 FILM NUMBER: 94507306 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 485APOS 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM N-1A REGISTRATION STATEMENT (NO. 2-69972) UNDER THE SECURITIES ACT OF 1933 [ ] Pre-Effective Amendment No. [ ] Post-Effective Amendment No. 47 [x] and REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940 [x] Amendment No. [ ] Fidelity Select Portfolios (Exact Name of Registrant as Specified in Charter) 82 Devonshire St., Boston, MA 02109 (Address Of Principal Executive Offices) Registrant's Telephone Number (617) 570-7000 Arthur S. Loring, Secretary 82 Devonshire Street Boston, MA 02109 (Name and Address of Agent for Service) It is proposed that this filing will become effective: ( ) Immediately upon filing pursuant to paragraph (b) of Rule 485 ( ) On () pursuant to paragraph (b) of Rule 485 ( ) 60 days after filing pursuant to paragraph (a) of Rule 485 (x ) On April 30, 1994 pursuant to paragraph (a) of Rule 485 Registrant has filed a declaration pursuant to Rule 24f-2 under the Investment Company Act of 1940 and intends to file the notice required by such on or Rule before April 30, 1994. FIDELITY SELECT PORTFOLIOS CROSS REFERENCE SHEET FORM N-1A ITEM NUMBER PROSPECTUS SECTION
1................................... Cover Page ... 2a.................................. Expenses .. b, Contents; The Funds at a Glance; Who May Want to c................................ Invest 3a.................................. Financial Highlights .. * b................................... . Performance c.................................... 4a Charter i................................. The Funds at a Glance; Investment Principles and ii............................... Risks; Securities & Investment Practices Securities & Investment Practices b................................... . Who May Want to Invest; Investment Principles; c.................................... Securities & Investment Practices 5a.................................. Charter .. b Doing Business with Fidelity; Charter i................................. Charter ii................................ Expenses; Breakdown of Expenses iii................................ c, Charter; FMR and Its Affiliates; Breakdown of d................................ Expenses Cover Page; FMR and Its Affiliates e.................................... Expenses f.................................... 5A Performance 6a Charter i................................. How to Buy Shares; How to Sell Shares; Transaction ii................................ Details; Exchange Restrictions * iii............................... * b................................... . Exchange Restrictions c.................................... * d................................... . Doing Business with Fidelity; How to Buy Shares; e.................................... How to Sell Shares; Investor Services f,g................................. Dividends, Capital Gains, and Taxes .. 7a.................................. Cover Page; Charter .. How to Buy Shares; Transaction Details b................................... . Sales Charge Reductions and Waivers c.................................... How to Buy Shares d................................... . e, * f................................ 8................................... How to Sell Shares; Investor Services; Transaction ... Details; Exchange Restrictions 9................................... * ...
* Not Applicable FIDELITY SELECT PORTFOLIOS CROSS REFERENCE SHEET (continued) FORM N-1A ITEM NUMBER STATEMENT OF ADDITIONAL INFORMATION SECTION
10.................................. Cover Page .. 11.................................. Cover Page .. 12.................................. * .. 13a - Investment Policies and Limitations c............................ Portfolio Transactions d.................................. 14a - Trustees and Officers c............................ 15a, * b.............................. Trustees and Officers c.................................. 16a FMR i................................ Trustees and Officers ii.............................. Management Contracts iii............................. Management Contracts b................................. c, Contracts with Companies Affiliated with FMR d............................. e - * g........................... Description of the Fund h................................. Contracts with Companies Affiliated with FMR i................................. 17a - Portfolio Transactions d............................ * e................................. 18a................................ Description of the Trust .. * b................................. 19a................................ Additional Purchase and Redemption Information .. Additional Purchase and Redemption Information; b.................................. Valuation of Portfolio Securities * c.................................. 20.................................. Distributions and Taxes .. 21a, Contracts with Companies Affiliated with FMR b.............................. * c................................. 22.................................. Performance .. 23.................................. Financial Statements ..
* Not Applicable Please read this prospectus before investing, and keep it on file for future reference. It contains important information, including how each fund invests and the services available to shareholders. A Statement of Additional Information dated April __ 1994 has been filed with the Securities and Exchange Commission, and is incorporated herein by reference (is legally considered a part of this prospectus). The Statement of Additional Information is available free upon request by calling Fidelity at 1-800-544-8888. Investments in the money market fund are neither insured nor guaranteed by the U.S. government, and there can be no assurance that the fund will maintain a stable $1.00 share price. Mutual fund shares are not deposits or obligations of, or endorsed or guaranteed by, any bank, savings association, insured depositary institution, or government agency, nor are they federally insured or otherwise protected by the FDIC, the Federal Reserve Board, or any other agency. Investments in the funds involve investment risk, including possible loss of principal. The value of the investment and its return will fluctuate and are not guaranteed. When sold, the value of the investment may be higher or lower than the amount originally invested. LIKE ALL MUTUAL FUNDS, THESE SECURITIES HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION, NOR HAS THE SECURITIES AND EXCHANGE COMMISSION OR ANY STATE SECURITIES COMMISSION PASSED UPON THE ACCURACY OR ADEQUACY OF THIS PROSPECTUS. ANY REPRESENTATION TO THE CONTRARY IS A CRIMINAL OFFENSE. SEL-pro-494 Each stock fund seeks to increase the value of your investment over the long-term by investing mainly in equity securities of companies within a particular industry. FIDELITY SELECT PORTFOLIOS(Registered trademark) The money market fund seeks high current income while maintaining a stable $1.00 share price . AIR TRANSPORTATION PORTFOLIO AMERICAN GOLD PORTFOLIO AUTOMOTIVE PORTFOLIO BIOTECHNOLOGY PORTFOLIO BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO CHEMICALS PORTFOLIO COMPUTERS PORTFOLIO CONSTRUCTION AND HOUSING PORTFOLIO CONSUMER PRODUCTS PORTFOLIO DEFENSE AND AEROSPACE PORTFOLIO DEVELOPING COMMUNICATIONS PORTFOLIO ELECTRONICS PORTFOLIO ENERGY PORTFOLIO ENERGY SERVICE PORTFOLIO ENVIRONMENTAL SERVICES PORTFOLIO FINANCIAL SERVICES PORTFOLIO FOOD AND AGRICULTURE PORTFOLIO HEALTH CARE PORTFOLIO HOME FINANCE PORTFOLIO INDUSTRIAL EQUIPMENT PORTFOLIO INDUSTRIAL MATERIALS PORTFOLIO INSURANCE PORTFOLIO LEISURE PORTFOLIO MEDICAL DELIVERY PORTFOLIO MULTIMEDIA PORTFOLIO NATURAL GAS PORTFOLIO PAPER AND FOREST PRODUCTS PORTFOLIO PRECIOUS METALS AND MINERALS PORTFOLIO REGIONAL BANKS PORTFOLIO RETAILING PORTFOLIO SOFTWARE AND COMPUTER SERVICES PORTFOLIO TECHNOLOGY PORTFOLIO TELECOMMUNICATIONS PORTFOLIO TRANSPORTATION PORTFOLIO UTILITIES PORTFOLIO MONEY MARKET PORTFOLIO PROSPECTUS APRIL __, 1994(FIDELITY_LOGO_GRAPHIC) 82 DEVONSHIRE STREET, BOSTON, MA 02109 CONTENTS
KEY FACTS THE FUNDS AT A GLANCE WHO MAY WANT TO INVEST EXPENSES Each fund's sales charge (load) and its yearly operating expenses. FINANCIAL HIGHLIGHTS A summary of each fund's financial data. PERFORMANCE How each fund has done over time. THE FUNDS IN DETAIL CHARTER How each fund is organized. INVESTMENT PRINCIPLES AND RISKS Each fund's overall approach to investing. BREAKDOWN OF EXPENSES How operating costs are calculated and what they include. YOUR ACCOUNT DOING BUSINESS WITH FIDELITY TYPES OF ACCOUNTS Different ways to set up your account, including tax-sheltered retirement plans. HOW TO BUY SHARES Opening an account and making additional investments. HOW TO SELL SHARES Taking money out of and closing your account. INVESTOR SERVICES Services to help you manage your account. SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES TRANSACTION DETAILS Share price calculations and the timing of purchases and redemptions. EXCHANGE RESTRICTIONS SALES CHARGE REDUCTIONS AND WAIVERS
KEY FACTS THE FUNDS AT A GLANCE STOCK FUNDS' GOAL: Capital appreciation (increase in the value of a fund's shares). As with any mutual fund, there is no assurance that a fund will achieve its goal. MANAGEMENT: Fidelity Management & Research Company (FMR) is the management arm of Fidelity Investments, which was established in 1946 and is now America's largest mutual fund manager. FMR Texas, Inc. (FTX), a subsidiary of FMR, chooses investments for the money market fund. AIR TRANSPORTATION STRATEGY: Invests mainly in equity securities of companies engaged in the regional, national, and international movement of passengers, mail, and freight via aircraft. SIZE: As of February 28, 1994, the fund had over $000 million in assets. AMERICAN GOLD STRATEGY: Invests mainly in equity securities of companies engaged in exploration, mining, processing, or dealing in gold, or, to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals, and may also invest directly in gold. SIZE: As of February 28, 1994, the fund had over $000 million in assets. AUTOMOTIVE STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, marketing, or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. SIZE: As of February 28, 1994, the fund had over $000 million in assets. BIOTECHNOLOGY STRATEGY: Invests mainly in equity securities of companies engaged in the research, development, scale up, and manufacture of various biotechnological products, services, and processes. SIZE: As of February 28, 1994, the fund had over $000 million in assets. BROKERAGE AND INVESTMENT MANAGEMENT STRATEGY: Invests mainly in equity securities of companies engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. SIZE: As of February 28, 1994, the fund had over $000 million in assets. CHEMICALS STRATEGY: Invests mainly in equity securities of companies engaged in the research, development, manufacture or marketing of products or services related to the chemical process industries. SIZE: As of February 28, 1994, the fund had over $000 million in assets. COMPUTERS STRATEGY: Invests mainly in equity securities of companies engaged in research, design, development, manufacture, or distribution of products, processes, or services that relate to currently available or experimental hardware technology within the computer industry. SIZE: As of February 28, 1994, the fund had over $000 million in assets. CONSTRUCTION AND HOUSING STRATEGY: Invests mainly in equity securities of companies engaged in the design and construction of residential, commercial, industrial, and public works facilities, as well as companies engaged in the manufacture, supply, distribution, or sale of products or services to these construction industries. SIZE: As of February 28, 1994, the fund had over $000 million in assets. CONSUMERS PRODUCTS STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture and distribution of goods to consumers, both domestically and internationally. SIZE: As of February 28, 1994, the fund had over $000 million in assets. DEFENSE AND AEROSPACE STRATEGY: Invests mainly in equity securities of companies engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries. SIZE: As of February 28, 1994, the fund had over $000 million in assets. DEVELOPING COMMUNICATIONS STRATEGY: Invests mainly in equity securities of companies engaged in the development, manufacture, or sale of emerging communications services or equipment. SIZE: As of February 28, 1994, the fund had over $000 million in assets. ELECTRONICS STRATEGY: Invests mainly in equity securities of companies engaged in the design, manufacture, or sale of electronic components; equipment vendors to electronic component manufacturers, electronic component distributors, and electronic instruments and electronics systems vendors. SIZE: As of February 28, 1994, the fund had over $000 million in assets. ENERGY STRATEGY: Invests mainly in equity securities of companies in the energy field, including the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. SIZE: As of February 28, 1994, the fund had over $000 million in assets. ENERGY SERVICE STRATEGY: Invests mainly in equity securities of companies in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. SIZE: As of February 28, 1994, the fund had over $000 million in assets. ENVIRONMENTAL SERVICES STRATEGY: Invests mainly in equity securities of companies engaged in the research, development, manufacture, or distribution of products, processes, or services related to waste management or pollution control. SIZE: As of February 28, 1994, the fund had over $000 million in assets. FINANCIAL SERVICES STRATEGY: Invests mainly in equity securities of companies providing financial services to consumers and industry. SIZE: As of February 28, 1994, the fund had over $000 million in assets. FOOD AND AGRICULTURE STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. SIZE: As of February 28, 1994, the fund had over $000 million in assets. HEALTH CARE STRATEGY: Invests mainly in equity securities of companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. SIZE: As of February 28, 1994, the fund had over $000 million in assets. HOME FINANCE STRATEGY: Invests mainly in equity securities of companies engaged in investing in real estate, usually through mortgages and other consumer-related loans. SIZE: As of February 28, 1994, the fund had over $000 million in assets. INDUSTRIAL EQUIPMENT STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, distribution, or service of products and equipment for the industrial sector, including integrated producers of capital equipment, parts suppliers and subcontractors. SIZE: As of February 28, 1994, the fund had over $000 million in assets. INDUSTRIAL MATERIALS STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. SIZE: As of February 28, 1994, the fund had over $000 million in assets. INSURANCE STRATEGY: Invests mainly in equity securities of companies engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. SIZE: As of February 28, 1994, the fund had over $000 million in assets. LEISURE STRATEGY: Invests mainly in equity securities of companies engaged in the design, production, or distribution of goods or services in the leisure industries. SIZE: As of February 28, 1994, the fund had over $000 million in assets. MEDICAL DELIVERY STRATEGY: Invests mainly in equity securities of companies engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. SIZE: As of February 28, 1994, the fund had over $000 million in assets. MULTIMEDIA (FORMERLY BROADCAST AND MEDIA) STRATEGY: Invests mainly in equity securities of companies engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. SIZE: As of February 28, 1994, the fund had over $000 million in assets. NATURAL GAS STRATEGY: Invests mainly in equity securities of companies engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. SIZE: As of February 28, 1994, the fund had over $000 million in assets. PAPER AND FOREST PRODUCTS STRATEGY: Invests mainly in equity securities of companies engaged in the manufacture, research, sale, or distribution of paper products, packaging products, building materials, and other products related to the paper and forest products industry. SIZE: As of February 28, 1994, the fund had over $000 million in assets. PRECIOUS METALS AND MINERALS STRATEGY: Invests mainly in equity securities of companies engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and may also invest directly in precious metals. SIZE: As of February 28, 1994, the fund had over $000 million in assets. REGIONAL BANKS STRATEGY: Invests mainly in equity securities of companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. SIZE: As of February 28, 1994, the fund had over $000 million in assets. RETAILING STRATEGY: Invests mainly in equity securities of companies engaged in merchandising finished goods and services primarily to individual consumers. SIZE: As of February 28, 1994, the fund had over $000 million in assets. SOFTWARE AND COMPUTER SERVICES STRATEGY: Invests mainly in equity securities of companies engaged in research, design, production, or distribution of products or processes that relate to software or information-based services. SIZE: As of February 28, 1994, the fund had over $000 million in assets. TECHNOLOGY STRATEGY: Invests mainly in equity securities of companies which FMR believes have, or will develop, products, processes, or services that will provide or will benefit significantly from technological advances and improvements. SIZE: As of February 28, 1994, the fund had over $000 million in assets. TELECOMMUNICATIONS STRATEGY: Invests mainly in equity securities of companies engaged in the development, manufacture, or sale of communications services or communications equipment. SIZE: As of February 28, 1994, the fund had over $000 million in assets. TRANSPORTATION STRATEGY: Invests mainly in equity securities of companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment. SIZE: As of February 28, 1994, the fund had over $000 million in assets. UTILITIES STRATEGY: Invests mainly in equity securities of companies in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. SIZE: As of February 28, 1994, the fund had over $000 million in assets. MONEY MARKET GOAL: Income while maintaining a stable share price. STRATEGY: Invests in high-quality, short-term instruments of all types. SIZE: As of February 28, 1994, the fund had over $000 million in assets. WHO MAY WANT TO INVEST The stock funds may be appropriate for investors who want to pursue growth aggressively by concentrating their investment on domestic and foreign securities within an industry or group of industries. The funds are designed for those who are interested in actively monitoring the progress of, and can accept the risks of, industry-focused investing. Because the funds are so narrowly focused, changes in a particular industry can have a substantial impact on a fund's share price. Also, because most of the funds are non-diversified, changes in the value of one company's securities can significantly affect a fund's performance. The money market fund may be appropriate for investors who would like to earn income at current money market rates while preserving the value of their investment. The fund is managed to keep its share price stable at $1.00. The money market fund is designed for use in connection with exchanges between the stock funds. Since this money market fund is sold with a sales charge, it is not recommended that you invest in the money market fund unless you intend to use it for that purpose. By themselves, these funds do not constitute a balanced investment plan. The value of the stock funds' investments will vary from day to day, generally reflecting changes in market and industry conditions, interest rates, and other political and economic news. When you sell your stock fund shares, they may be worth more or less than what you paid for them. The rate of income for the money market fund will vary from day to day generally reflecting short-term interest rates. EXPENSES SHAREHOLDER TRANSACTION EXPENSES are charges you pay when you buy or sell shares of a fund. See pages xx and xx for an explanation of how and when these charges apply. Lower sales charges may be available for accounts over $250,000. Maximum sales charge on purchases (as a % of offering price) 3.00% Maximum sales charge on reinvested dividends None Deferred sales charge on redemptions None Exchange fee $7.50 Redemption fees on shares held 29 days or less (as a % of redemption amount) 0.75% on shares held 30 days or more $7.50 ANNUAL FUND OPERATING EXPENSES are paid out of each fund's assets. Each fund pays management fees to FMR. Each fund also incurs other expenses for services such as maintaining shareholder statements and fund reports. Expenses are factored into each fund's share price or dividends and are not charged directly to shareholder accounts (see page xx). The operating expenses are projections based on historical expenses, and are calculated as a percentage of average net assets. A portion of the brokerage commissions that the funds paid may have been used to reduce fund expenses. This would make the actual expenses higher than they appear in the table. EXAMPLES. Let's say, hypothetically, that each fund's annual return is 5% and that its operating expenses are exactly as described. For every $1,000 you invested, the examples show how much you would have paid in total expenses if you closed your account after the number of years indicated. The examples illustrate the effect of expenses, but are not meant to suggest actual or expected costs or returns, all of which may vary. Operating expenses Examples
AIR TRANSPORTATION Management fee (after 0.00 After 1 year $00 reimbursement) %A 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years AMERICAN GOLD Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years AUTOMOTIVE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years BIOTECHNOLOGY Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years BROKERAGE AND INVESTMENT MANAGEMENT Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years
A FMR REDUCED OR REIMBURSED THESE MANAGEMENT FEES OR OTHER EXPENSES AS A RESULT OF EITHER A VOLUNTARY EXPENSE REIMBURSEMENT OR A STATE REGULATION. EXPENSES ELIGIBLE FOR REDUCTION OR REIMBURSEMENT DO NOT INCLUDE INTEREST, TAXES, BROKERAGE COMMISSIONS, OR EXTRAORDINARY EXPENSES. IF NOT FOR THE REDUCTION OR REIMBURSEMENT, THE FUNDS' MANAGEMENT FEES, OTHER EXPENSES, AND TOTAL OPERATING EXPENSES, RESPECTIVELY, WOULD BE: ____. Operating expenses Examples
CHEMICALS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years COMPUTERS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years CONSTRUCTION AND HOUSING Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years CONSUMER PRODUCTS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years DEFENSE AND AEROSPACE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years DEVELOPING COMMUNICATIONS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years ELECTRONICS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years ENERGY Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years
Operating expenses Examples
ENERGY SERVICE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years ENVIRONMENTAL SERVICES Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years FINANCIAL SERVICES Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years FOOD AND AGRICULTURE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years HEALTH CARE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years HOME FINANCE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years INDUSTRIAL EQUIPMENT Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years INDUSTRIAL MATERIALS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years
Operating expenses Examples
INSURANCE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years LEISURE Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years MEDICAL DELIVERY Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years MULTIMEDIA Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years NATURAL GAS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years PAPER AND FOREST PRODUCTS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years PRECIOUS METALS AND MINERALS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years REGIONAL BANKS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years
Operating expenses Examples
RETAILING Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years SOFTWARE AND COMPUTER SERVICES Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years TECHNOLOGY Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years TELECOMMUNICATIONS Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years TRANSPORTATION Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years UTILITIES Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years MONEY MARKET Management fee 0.00 After 1 year $00 % 12b-1 fee None After 3 years $00 Other expenses 0.00 After 5 years $00 % Total fund operating 0.00 After 10 $000 expenses % years
FINANCIAL HIGHLIGHTS. The charts that follow provide financial histories for all the funds. This information has been audited by Price Waterhouse, independent accountants. Their unqualified reports are included in the funds' Annual Report. The Annual Report is incorporated by reference into (is legally a part of) the Statement of Additional Information. This information will be updated by subsequent amendment PERFORMANCE Mutual fund performance is commonly measured as TOTAL RETURN. The total returns in this section are based on historical fund results and do not reflect the effect of of taxes. The tables on pages 13 and 14 show the funds' performance over past fiscal years compared to two measures: investment in a broad selection of stocks (S&P 500), and not investing at all (inflation, or CPI). To help you compare the funds to other funds, the charts beginning on page ___ display calendar years. Each fund's fiscal year runs from March 1 through February 28 (February 29 in a leap year).
Fiscal periods ended February 28, 1994 Average Annual Total Return Cumulative Total Return
Past 1 year Past 5 years Life of fund Past 1 year Past 5 years Life of fund AIR TRANSPORTATION 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% AIR TRANSPORTATION (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% AMERICAN GOLD 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% AMERICAN GOLD (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% AUTOMOTIVE 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% AUTOMOTIVE (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% BIOTECHNOLOGY 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% BIOTECHNOLOGY (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% BROKERAGE AND INVESTMENT MANAGEMENT 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% BROKERAGE AND INVESTMENT MANAGEMENT 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% (LOAD ADJ.A) CHEMICALS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% CHEMICALS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% COMPUTERS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% COMPUTERS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00%
CONSTRUCTION AND HOUSING 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% CONSTRUCTION AND HOUSING (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% CONSUMER PRODUCTS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% CONSUMER PRODUCTS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% DEFENSE AND AEROSPACE 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% DEFENSE AND AEROSPACE (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% DEVELOPING COMMUNICATIONS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% DEVELOPING COMMUNICATIONS (LOAD 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ADJ.A) S&P 500 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% Consumer Price Index 00.00% 00.00% 00.00% 00.00% 00.00% 00.00%
Fiscal periods February 28, 1994 Average Annual Total Return Cumulative Total Return
Past 1 year Past 5 years Life of fund Past 1 year Past 5 years Life of fund
ELECTRONICS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ELECTRONICS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ENERGY 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ENERGY (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ENERGY SERVICE 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ENERGY SERVICE (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ENVIRONMENTAL SERVICES 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ENVIRONMENTAL SERVICES (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% FINANCIAL SERVICES 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% FINANCIAL SERVICES (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% FOOD AND AGRICULTURE 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% FOOD AND AGRICULTURE (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% HEALTH CARE PORTFOLIO 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% HEALTH CARE PORTFOLIO (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00%
HOME FINANCE PORTFOLIO 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% HOME FINANCE PORTFOLIO (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% INDUSTRIAL EQUIPMENT 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% INDUSTRIAL EQUIPMENT (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% INDUSTRIAL MATERIALS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% INDUSTRIAL MATERIALS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% INSURANCE 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% INSURANCE (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% LEISURE 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% LEISURE (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% MEDICAL DELIVERY 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% MEDICAL DELIVERY (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% MULTIMEDIA 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% MULTIMEDIA (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% NATURAL GAS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% NATURAL GAS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% S&P 500 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% Consumer Price Index 00.00% 00.00% 00.00% 00.00% 00.00% 00.00%
Fiscal periods ended February 28, 1994 Average Annual Total Return Cumulative Total Return
Past 1 year Past 5 years Life of fund Past 1 year Past 5 years Life of fund
PAPER AND FOREST PRODUCTS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% PAPER AND FOREST PRODUCTS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% PRECIOUS METALS AND MINERALS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% PRECIOUS METALS AND MINERALS (LOAD 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ADJ.A) REGIONAL BANKS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% REGIONAL BANKS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00%
RETAILING 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% RETAILING (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% SOFTWARE AND COMPUTER SERVICES 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% SOFTWARE AND COMPUTER SERVICES (LOAD 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% ADJ.A) TECHNOLOGY 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% TECHNOLOGY (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% TELECOMMUNICATIONS 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% TELECOMMUNICATIONS (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% TRANSPORTATION 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% TRANSPORTATION (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% UTILITIES 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% UTILITIES (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% MONEY MARKET 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% MONEY MARKET (LOAD ADJ.A) 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% S&P 500 00.00% 00.00% 00.00% 00.00% 00.00% 00.00% Consumer Price Index 00.00% 00.00% 00.00% 00.00% 00.00% 00.00%
A LOAD-ADJUSTED RETURNS INCLUDE THE EFFECT OF PAYING A FUND'S SALES CHARGE. B C D E F G H I J K L M EXPLANATION OF TERMS TOTAL RETURN is the change in value of an investment in a fund over a given period, assuming reinvestment of any dividends and capital gains. A CUMULATIVE TOTAL RETURN reflects actual performance over a stated period of time. An AVERAGE ANNUAL TOTAL RETURN is a hypothetical rate of return that, if achieved annually, would have produced the same cumulative total return if performance had been constant over the entire period. Average annual total returns smooth out variations in performance; they are not the same as actual year-by-year results. Average annual total returns covering periods of less than one year assume that performance will remain constant for the rest of the year. THE S&P 500(Registered trademark) is the Standard & Poor's 500 Composite Stock Price Index, a widely recognized, unmanaged index of common stock prices. The S&P 500 figures assume reinvestment of all dividends paid by stocks included in the index. They do not, however, include any allowance for the brokerage commissions or other fees you would pay if you actually invested in those stocks. THE CONSUMER PRICE INDEX is a widely recognized measure of inflation calculated by the U.S. government. YIELD, for the money market fund, refers to the income generated by an investment in a fund over a given period of time, expressed as an annual percentage rate. Yields are calculated according to a standard that is required for all money market funds. When a yield assumes that income earned is reinvested, it is called an EFFECTIVE YIELD. Other illustrations of fund performance may show moving averages over specific periods. The funds' recent strategies, performance, and holdings are detailed twice a year in fund reports, which are sent to all shareholders. For current performance or a free annual report, call 1-800-544-8888. TOTAL RETURNS AND YIELDS ARE BASED ON PAST RESULTS AND ARE NOT AN INDICATION OF FUTURE PERFORMANCE. THE FUNDS IN DETAIL CHARTER THE FUNDS ARE MUTUAL FUNDS: investments that pool shareholders' money and invest it toward a specified goal. In technical terms, each stock fund (except Financial Services, Regional Banks, and Home Finance Portfolios) is a non-diversified fund of Fidelity Select Portfolios, an open-end, management investment company. The money market fund and the remaining stock funds are diversified funds of the trust. The trust was organized as a Massachusetts business trust on November 20, 1980. EACH FUND MAY HOLD SPECIAL MEETINGS AND MAIL PROXY MATERIALS. These meetings may be called to elect or remove trustees, change fundamental policies, approve a management contract, or for other purposes. Shareholders not attending these meetings are encouraged to vote by proxy. Fidelity will mail proxy materials in advance, including a voting card and information about the proposals to be voted on. The number of votes you are entitled to is based on the dollar value of your investment. FMR AND ITS AFFILIATES The funds are managed by FMR, which chooses each fund's investments and handles their business affairs. Fidelity Management and Research (U.K.) Inc. (FMR U.K.) and Fidelity Management & Research (Far East) Inc. (FMR Far East) assist FMR with foreign investments. Paul Antico has been portfolio manager of Fidelity Select Developing Communications Portfolio since November 1993. Previously, he served as an analyst for the telecommunications equipment and restaurant industries. He also served as an assistant on Fidelity Balanced Fund and Fidelity Equity-Income II Fund. He joined Fidelity in 1991, after receiving a B.S. in economics from the Massachusetts Institute of Technology. Philip Barton has been portfolio manager of Fidelity Select Environmental Services Portfolio since October 1993. Previously, he managed Fidelity Select Developing Communications Portfolio and was senior European technology analyst at Fidelity International in London. Barton joined the company in 1986 as an analyst following first the banking industry and then software and computer services. He received his C.F.A. in 1988. Robert Bertelson has been portfolio manager of Fidelity Select Energy Portfolio since January 1992. He joined the company as an equity analyst in 1991. Before that, Bertelson was vice president and research analyst at Wellington Management Company. Stephen Binder has been portfolio manager of Fidelity Select Financial Services since December 1993, Fidelity Select Defense and Aerospace Portfolio since October 1992, and Fidelity Select Regional Banks Portfolio since May 1990. He joined Fidelity in 1989 as an equity analyst, after receiving an M.B.A. in finance and accounting from the University of Chicago. Robert Chow has been portfolio manager of Fidelity Select Insurance Portfolio since June 1993. He has also served as manager of Fidelity Select Computers, Paper and Forest Products and Technology Portfolios and as an assistant on Fidelity Growth & Income Portfolio. Chow joined the company as a summer intern in 1989. Before that, he was a sub-project manager at TRW, an aerospace company. Chow received an M.B.A. in finance from the University of Chicago in 1990. Arieh Coll has been portfolio manager of Fidelity Select Brokerage and Investment Management Portfolio since November 1993 and Fidelity Select Software and Computer Services Portfolio since October 1991. Previously, he managed Fidelity Select Technology Portfolio. He joined Fidelity in 1989, after receiving an M.B.A. from Northwestern University. Katherine Collins has been portfolio manager of the Select Construction and Housing Portfolio since June 1992. She joined the company in July 1990 as an equity analyst following the home-building and construction industries. She received her B.A. from Wellesley College in economics and Japanese studies in 1990. Stephen DuFour has been portfolio manager of Fidelity Select Multimedia Portfolio since July 1993. He joined Fidelity as a media analyst in 1992, after receiving an M.B.A. from the University of Chicago. Previously, he worked as a financial analyst at PaineWebber. In 1988, DuFour received a B.A. from the University of Notre Dame. David Ellison has been portfolio manager of Fidelity Select Home Finance Portfolio since December 1985. Previously, he managed the Fidelity Select Brokerage and Investment Management and Financial Services Portfolios. He has also been a banking and finance analyst. Mary English has been portfolio manager of Fidelity Select Retailing Portfolio since June 1993. Previously, she was an equity analyst following the specialty retail and advertising industries. English joined Fidelity in 1991, after receiving her M.B.A. from the University of Virginia. Before that, she was a senior equity analyst and vice president at Furman, Selz, an institutional research firm. Jeff Feinberg has been portfolio manager of Fidelity Select Retailing Portfolio since February, 1994. Previously, he served as an analyst following the footware and specialty retail industries. Mr. Feinberg joined Fidelity in March 1992 while attending Harvard Business School. He received his M.B.A. from Harvard in 1993. Before that, Feinberg was a merger and acquisitions analyst at Wasserstein Perella & Co. Karen Firestone has been portfolio manager of Fidelity Select Biotechnology Portfolio since August 1992. Previously, she managed Fidelity Select Air Transportation, Multimedia, Leisure, and Transportation Portfolios. Firestone joined the company in 1983. Harry Lange has been portfolio manager of Fidelity Select Electronics Portfolio since February 1994, Fidelity Select Technology Portfolio since November 1993, and Fidelity Select Computers Portfolio since June 1992. Previously, he managed Fidelity Select Automation and Machinery and Capital Goods Portfolios. He joined the company in 1987. Malcolm MacNaught has been portfolio manager of Fidelity Select American Gold Portfolio since December 1985 and Fidelity Select Precious Metals and Minerals Portfolio since July 1981. He also manages Fidelity Advisor Global Natural Resources Portfolio. Charles Mangum has been portfolio manager of Fidelity Select Health Care Portfolio since March 1992. Previously, he managed Fidelity Select Medical Delivery Portfolio. He received an M.B.A. from the University of Chicago in 1990. Before joining Fidelity in 1990, he worked as a financial analyst at Eppler, Guerin and Turner, a Dallas-based brokerage house. William Mankivsky has been portfolio manager of Fidelity Select Food and Agriculture Portfolio since April 1993 and Fidelity Select Energy Service Portfolio since January 1992. He joined Fidelity in 1991 as an equity analyst following the energy service and medical devices industries. He received an M.B.A. in finance and accounting from the University of Chicago in 1991. Before that, he was an analyst at the Prudential Property Company in Chicago. John Muresianu has been portfolio manager of Fidelity Select Natural Gas Portfolio since April 1993, Fidelity Select Utilities Portfolio and Fidelity Utilities Income Fund since December 1992. Previously, he managed Fidelity Select Electric Utilities Portfolio and served as senior research analyst following natural gas pipelines, life insurance, service companies, Canadian stocks and foreign currencies. He has also been a pension fund manager with the company. Muresianu joined Fidelity in 1986. Scott Offen has been portfolio manager of Fidelity Select Paper and Forest Products Portfolio since November 1993. Previously, he managed Fidelity Select Brokerage and Investment Management and Life Insurance Portfolios. Offen joined the company in 1985 as an insurance and finance analyst. Richard Patton has been portfolio manager of Fidelity Select Automotive Portfolio since July 1993. He joined Fidelity as a specialty chemicals analyst in 1992, after receiving an M.B.A. from Harvard Business School. Previously, Patton was an associate with Breau Capital Management and president and founder of several businesses. Stephen Pesek has been portfolio manager of Fidelity Select Consumer Products Portfolio since April 1993. Previously, he managed the Fidelity Select Chemicals, Industrial Materials, Insurance and Transportation Portfolios. He joined the company in 1987, after receiving an M.B.A. from Columbia University. Brenda Reed has been portfolio manager of Fidelity Select Air Transportation since December 1992. She joined the company in 1992 as an equity analyst following the apparel and textile industries. Previously, she was an equity analyst at the Putnam Companies and vice president of New England Research and Management. Reed received an M.B.A. from Dartmouth College in 1992, and a B.S. in financial management from Boston University in 1989. Albert Ruback has been portfolio manager of Fidelity Select Industrial Equipment Portfolio since September 1991. He joined Fidelity in 1991, after receiving an M.B.A. from Harvard University in 1991. Previously, he was a research associate for Sanford C. Bernstein and Co. Louis Salemy has been portfolio manager of Fidelity Select Medical Delivery Portfolio since April 1993 and Fidelity Select Industrial Materials Portfolio since August 1992. He joined Fidelity in April 1992. Previously, he was a security analyst for Loomis, Sayles and Company. Salemy received an M.B.A. in finance from New York University in 1989. Fergus Shiel has been portfolio manager of Fidelity Select Telecommunications Portfolio since June 1992. Previously, Shiel managed Fidelity Select Multimedia Portfolio. He joined the company in 1989, after receiving an M.B.A. in finance from Columbia University. Beso Sikharulidze has been portfolio manager of Fidelity Select Transportation Portfolio since November 1993. He joined Fidelity as an equity analyst in 1992, after receiving an M.B.A. from Harvard Business School. From January to August 1990, he worked at Pioneer Hybrid, a multinational agricultural company based in Des Moines, Iowa. In 1988, he co-founded the Science and Engineering Development Center, an engineering and consulting firm in Soviet Georgia, where he served as chief operating officer. Mark Tempero has been portfolio manager of Fidelity Select Natural Gas Portfolio since February 1994. He joined Fidelity in May 1993 as an analyst following domestic oil and gas exploration and production as well as conglomerates. Tempero received his M.B.A. from the University of Chicago in 1993 and his masters in economics from the London School of Economics in 1992. John Todd has been portfolio manager of Fidelity Select Money Market Portfolio since January 1991. He has also managed Spartan Money Market Fund since 1989. He joined the company in 1981. Deborah Wheeler has been portfolio manager of Fidelity Select Leisure Portfolio since August 1992. Previously, Wheeler managed the Fidelity Select Food and Agriculture, Housing, and Retailing Portfolios. She was also an assistant on Fidelity Magellan Fund. Wheeler joined Fidelity in 1986. Steven Wymer has been portfolio manager of Fidelity Select Chemicals Portfolio since January 1993. He is also an assistant on Fidelity Magellan Fund. Previously, he was portfolio manager of Fidelity Select Automotive Portfolio and an assistant on Fidelity Growth & Income Portfolio. Wymer joined the company in 1989, after receiving an M.B.A. from the University of Chicago. FDC distributes and markets Fidelity's funds and services. Fidelity Service Co. (FSC) is the funds' transfer, shareholder service, and dividend-paying agent. FMR Corp. is the parent company of these organizations. Through ownership of voting common stock, Edward C. Johnson 3d (President and a trustee of the trust), Johnson family members, and various trusts for the benefit of the Johnson family form a controlling group with respect to FMR Corp. A broker-dealer may use a portion of the commissions paid by a fund to reduce custodian or transfer agent fees. FMR may use its broker-dealer affiliates and other firms that sell fund shares to carry out a fund's transactions, provided that the fund receives brokerage services and commission rates comparable to those of other broker-dealers. INVESTMENT PRINCIPLES AND RISKS The stock funds seek capital appreciation by investing primarily in equity securities, although they may invest in other types of instruments as well. American Gold and Precious Metals and Minerals Portfolios can also invest in precious metals. Each stock fund focuses its investments on a particular industry, normally investing most of its assets in securities of companies principally engaged in the business activities identified below. For most of the stock funds, an issuer is considered principally engaged in a business activity if at least 50% of its assets, gross income, or net profits are committed to, or derived from, that activity. For Brokerage and Investment Management and Financial Services Portfolios, an issuer is considered principally engaged if it derives more than 15% of revenues or profits from brokerage or investment management activities.The funds' strategy can lead to investments in small companies, which often involve more risk than larger companies. Securities of small companies, especially those that base their business on emerging products or concepts, may be volatile due to limited product lines, markets, or financial resources. The funds invest in domestic and foreign securities, including securities of emerging markets, which can be considered speculative, and experience more volatility than those of the more developed nations. Non-diversified funds may have greater investments in a single issuer than diversified funds, so the performance of a single issuer can have a substantial impact on a fund's share price. Additionally, since the stock funds focus on specific industries, their prices may be more volatile than those of more broadly diversified investments. Each fund's performance is closely tied to its industry, as well as to the economy as a whole. Securities in an industry often react similarly to market conditions, and may move in unison. As a result, the narrower a fund's focus is, the more volatile its performance is likely to be. In many cases, the focus of a fund differs from another only slightly, so they may invest in many of the same securities. FMR may use various techniques to hedge a fund's risks, but there is no guarantee that these strategies will work as FMR intends. When you sell your shares in a stock fund, they may be worth more or less than what you paid for them. FMR normally invests each fund's assets according to its investment strategy. When FMR considers it appropriate for defensive purposes, however, each stock fund may temporarily invest substantially in investment-grade debt securities. AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the regional, national and international movement of passengers, mail, and freight via aircraft. Investments in this fund may include, for example, the airlines, air cargo providers, or companies that provide equipment or services to these companies. Airline profitability is substantially influenced by competition within the industry, domestic and foreign economies and government regulation, and the price of fuel. Additionally, the industry is still feeling the effects of deregulation. AMERICAN GOLD PORTFOLIO invests primarily in companies engaged in exploration, mining, processing, or dealing in gold, or, to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. The fund focuses on North, Central, and South American companies engaged in gold-related activities. This focus may also include gold bullion or coins and securities indexed to the price of gold. The fund may also invest in securities of companies which themselves invest in companies engaged in these activities. The price of gold and other precious metal mining securities can face substantial short-term volatility caused by international monetary and political developments such as currency devaluations or revaluations, economic and social conditions within a country, or trade restrictions between countries. Since much of the world's gold reserves are located in South Africa, the social and economic conditions there can affect gold and gold-related companies located elsewhere. The price of gold bullion or coins is more affected by broad economic and political conditions. FMR does not currently intend to purchase gold if, as a result, more than 25% of the fund's total assets would be invested in gold and gold-indexed securities, and does not currently intend to purchase coins. Under current federal tax law, gains from selling gold may not exceed 10% of the fund's annual gross income. This tax requirement could cause the fund to hold or sell bullion or securities when it would not otherwise do so. AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the manufacture, marketing, or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. These companies may include, for example, automobile manufacturers, distributors, and parts providers. The fund may also invest in companies that provide services to automobile manufacturers, distributors, or consumers. The automotive industry is highly cyclical and companies in the industry may suffer periodic operating losses. While most of the major manufacturers are large, financially strong companies, some are smaller manufacturers that have a non-diversified product line or customer base. BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the research, development, scale up, and manufacture of various biotechnological products, services, and processes. This may include, for example, companies involved with new or experimental technologies such as genetic engineering. The fund may also invest in companies that manufacture, distribute, or benefit from biotechnological and biomedical products, processes, or services. FMR interprets the biotechnology sector broadly. For example, the fund may invest in companies involved in applications and developments in such areas as health care, pharmaceuticals, and agriculture. Biotechnology companies are affected by patent considerations, intense competition, rapid technological change and obsolescence, and regulatory requirements. In addition, many of these companies may not offer products yet and may have persistent losses or erratic revenue patterns. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO invests primarily in companies engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. The fund does not invest in securities of FMR or its affiliated companies. Under SEC regulations the fund may not invest more than 5% of its total assets in the securities of any company that derives more than 15% of its revenues from brokerage or investment management activities. Changes in regulations, brokerage commission structure, stock market activity, and the competitive environment, combined with the operating leverage inherent in companies in these industries, can produce erratic returns over time. CHEMICALS PORTFOLIO invests primarily in companies engaged in the research, development, manufacture, or marketing of products or services related to the chemical process industries. These products may include, for example, synthetic and natural materials, such as fertilizers, building materials, and plastics. The fund may also hold the securities of companies providing design, engineering, construction, and consulting services to companies engaged in chemical processing. Companies in the chemical processing field are subject to intense competition, product obsolescence and significant governmental regulation. As regulations are developed and enforced, such companies may be required to alter or cease production of a product, to pay fines, or to pay for cleaning up a disposal site. In addition, chemical companies face unique risks associated with handling hazardous products. COMPUTERS PORTFOLIO invests primarily in companies engaged in research, design, development, manufacture or distribution of products, processes, or services that relate to currently available or experimental hardware technology within the computer industry. The fund may invest in companies that provide products or services such as computer and office equipment wholesalers, software retailers, data processors, and designers of artificial intelligence. Competitive pressures and changing domestic and international demand may have a significant effect on the financial condition of companies in the computer industry. Companies in the industry spend heavily on research and development and are sensitive to the risk of product obsolescence. CONSTRUCTION AND HOUSING PORTFOLIO invests primarily in companies engaged in the design and construction of residential, commercial, industrial, and public works facilities, as well as companies engaged in the manufacture, supply, distribution, or sale of products or services to these construction industries. Examples of companies engaged in these activities include companies that produce basic building materials such as cement, supply home furnishings, or provide engineering or contracting services. The fund also may invest in companies involved in real estate development and construction financing such as home builders, architectural and design firms, and property managers, and in companies involved in the home improvement and maintenance industry. Companies in this industry are subject to a variety of factors such as government spending on housing subsidies, public works, and transportation facilities, as well as changes in interest rates, consumer confidence and spending, taxation, demographic patterns, the level of new and existing home sales, and other economic activity. CONSUMER PRODUCTS PORTFOLIO invests primarily in companies engaged in the manufacture and distribution of goods to consumers both domestically and internationally. This may include, for example, companies that manufacture or sell durable goods such as homes, cars, boats, major appliances, and personal computers. It may also include companies that manufacture or sell non-durable goods such as food or entertainment products, and companies that provide services such as lodging or childcare. The success of consumer product manufacturers and retailers is closely tied to the performance of the overall economy, interest rates, competition, and consumer confidence. Success depends heavily on disposable household income and consumer spending. Changes in demographics and consumer tastes can also affect the demand for, and success of, consumer products in the marketplace. DEFENSE AND AEROSPACE PORTFOLIO invests primarily in companies engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries. For example, the fund may invest in companies involved in defense electronics, aircraft or spacecraft production, missile design, data processing or computer-related services. The financial condition of companies in the industry and investor interest in these companies are heavily influenced by government defense and aerospace spending policies. Defense spending is currently under pressure from efforts to control the U.S. budget deficit. DEVELOPING COMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture, or sale of emerging communications services or equipment. Emerging communications are those which derive from new technologies or new applications of existing technologies. Examples of the fund's investments may include companies involved in cellular communications, software development, video conferencing or data processing. The fund places less emphasis on traditional communications companies such as large long distance carriers. Products or services provided by this industry may be in the development stage and can face risks such as failure to obtain financing or regulatory approval, intense competition, product incompatibility, consumer preferences, and rapid obsolescence. ELECTRONICS PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards, and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. This may include companies involved in new technologies or specialty areas such as defense electronics, advanced design and manufacturing technologies, or lasers. Many of the products offered by companies engaged in the design, production, or distribution of electronic products are subject to risks of rapid obsolescence and intense competition. ENERGY PORTFOLIO invests primarily in companies in the energy field, including the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. This may include, for example, companies that produce, transmit, market, or measure energy, as well as companies involved in the exploration of new sources of energy. Securities of companies in the energy field are subject to changes in value and dividend yield which depend largely on the price and supply of energy fuels. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of exploration projects, and tax and other governmental regulatory policies. ENERGY SERVICE PORTFOLIO invests primarily in companies in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity, and coal, and newer sources of energy such as nuclear, geothermal, oil shale, and solar power. Holdings may include companies providing services such as onshore or offshore drilling, or those involved in production and well maintenance, exploration technology, energy transport or equipment and plant design or construction. Energy service firms are affected by supply and demand both for their specific product or service, and for energy products in general. The price of oil and gas, exploration and production spending, governmental regulation, world events and economic conditions will likewise affect the performance of these companies. ENVIRONMENTAL SERVICES PORTFOLIO invests primarily in companies engaged in the research, development, manufacture, or distribution of products, processes, or services related to waste management or pollution control. The fund may invest in companies participating in pollution control through methods such as packaging, disposal, and sanitation, companies that are investigating new ways to protect the environment, and companies engaged in design, construction, or consulting. This industry can be impacted by legislation, government regulations, and enforcement policies. As regulations are developed and enforced, companies may be required to alter or cease production of a product or service. In addition, hazardous materials may be involved, and companies can face significant liability risk. FINANCIAL SERVICES PORTFOLIO invests primarily in companies providing financial services to consumers and industry. Examples of companies in the financial services field include commercial banks, savings and loan associations, brokerage companies, insurance companies, real estate and leasing companies, and companies that span across these segments. Under SEC regulations, the fund may not invest more than 5% of its total assets in the securities of any company that derives more than 15% of its revenues from brokerage or investment management activities. Financial services companies are subject to extensive governmental regulation which may limit both the amounts and types of loans and other financial commitments they can make, and the interest rates and fees they can charge. Profitability is largely dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change. Credit losses resulting from financial difficulties of borrowers can negatively impact the industry. Insurance companies may be subject to severe price competition. FOOD AND AGRICULTURE PORTFOLIO invests primarily in companies engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. This may include, for example, companies that sell products and services, such as, grocery stores, and restaurants, companies that manufacture and distribute products such as soft drinks, and companies engaged in the development of new technologies such as improved hybrid seeds. The success of the industry is closely tied to supply and demand, which may be affected by demographic and product trends, or stimulated by food fads, marketing campaigns, and environmental factors. In the U.S., the agricultural products industry is subject to regulation by numerous government agencies. HEALTH CARE PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. Companies in the health care field may include, for example, pharmaceutical companies, companies involved in research and development, companies involved in the operation of health care facilities, and other companies involved in the design, manufacture, or sale of related products or services. Many of these companies are subject to government regulation and approval of their products and services, which could have a significant effect on their price and availability. Furthermore, the types of products or services produced or provided by these companies may quickly become obsolete. The administration is currently examining the health care industry to determine whether government funds are spent appropriately, and to ensure that adequate health care is available to everyone. HOME FINANCE PORTFOLIO invests primarily in companies engaged in investing in real estate, usually through mortgages and other consumer-related loans. These companies may also offer discount brokerage services, insurance products, leasing services, and joint venture financing. This may include, for example, mortgage banking companies, real estate investment trusts, banks, and other depository institutions. The residential real estate finance industry has changed rapidly over the last decade and is expected to continue to change. Regulatory changes at federally insured institutions, in response to a high failure rate, have mandated higher capital ratios and more prudent underwriting. This reduced capacity has created growth opportunities for uninsured companies and secondary market products to fill unmet demand for home finance. Regulatory changes, interest rate movements, home mortgage demand, and residential delinquency trends will affect the industry. INDUSTRIAL EQUIPMENT PORTFOLIO invests primarily in companies engaged in the manufacture, distribution, or service of products and equipment for the industrial sector, including integrated producers of capital equipment (such as general industry machinery, farm equipment, and computers), parts suppliers, and subcontractors. This may include, for example, companies that manufacture products or service equipment for railroads, construction, or farming. The success of equipment manufacturing and distribution companies is closely tied to overall capital spending levels, which is influenced by an individual company's profitability, and broader issues such as interest rates and foreign competition. The industry may also be affected by economic cycles, technical progress, labor relations, and government regulations. INDUSTRIAL MATERIALS PORTFOLIO invests primarily in companies engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. These materials and goods may include, for example, chemicals, metals, and wood products. Investments may also include mining, processing, transportation, and distribution companies, including equipment suppliers and railroads. Many companies in this sector are significantly affected by the level and volatility of commodity prices, the exchange value of the dollar, import controls, and worldwide competition. At times, worldwide production of these materials has exceeded demand as a result of over-building or economic downturns, leading to poor investment returns or losses. Other risks may include liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. INSURANCE PORTFOLIO invests primarily in companies engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. Examples of the fund's investments may include companies that provide a specific type of insurance, such as life or health insurance, those that offer a variety of insurance products and those that provide insurance services such as brokers and claims processors. Insurance company profits are affected by interest rate levels, general economic conditions, and price and marketing competition. Certain types of insurance may be impacted by events or trends such as natural catastrophes or mortality rates. Companies may be exposed to material risks including shortage of cash reserves and the inability to collect from reinsurance carriers. Also, insurance companies are subject to extensive governmental regulation, and can be adversely affected by proposed or potential tax law changes. LEISURE PORTFOLIO invests primarily in companies engaged in the design, production, or distribution of goods or services in the leisure industries. The goods or services provided by companies in the fund may include, for example, television and radio broadcast, motion pictures, cellular phones, gaming casinos, theme parks, and lodging. Securities of companies in the leisure industry may be considered speculative and generally exhibit greater volatility than the overall market. Many companies have unpredictable earnings, due in part to changing consumer tastes and intense competition. The industry has reacted strongly to technological developments and to the threat of government regulation. MEDICAL DELIVERY PORTFOLIO invests primarily in companies engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. This may include, for example, companies that operate acute care, psychiatric, teaching, or specialized treatment hospitals, as well as home health care providers, medical equipment suppliers, and those that provide related services. Federal and state governments provide a substantial percentage of revenues to health care service providers via Medicare and Medicaid. These sources are subject to extensive governmental regulation and appropriations are a continued source of debate. The administration is currently examining the health care industry to determine whether government funds are spent appropriately, and to ensure that adequate health care is available to everyone. The demand for health care services should increase as the population ages. However, studies have shown the ability of health care providers to curtail unnecessary hospital stays and reduce costs. These changes could alter the health care industry, focusing it more on home care, and placing less emphasis on inpatient revenues as a source of profit. MULTIMEDIA PORTFOLIO invests primarily in companies engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. The fund's investments may include broadcasting companies, such as cable television providers, companies involved in emerging technologies such as cellular communications, or other companies involved in the ownership, operation or development of media products or services. Some of the companies in these industries are undergoing significant change because of federal deregulation of cable and broadcasting. As a result, competitive pressures are intense and the stocks are subject to increased price volatility. FMR abides by Federal Communications Commission rules governing the concentration of investment in AM, FM, or TV stations limiting investment alternatives. NATURAL GAS PORTFOLIO invests primarily in companies engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. This may include, for example, companies participating in gas research, exploration, or refining, companies working toward technological advances in the natural gas field, and other companies providing products or services to the industry. The companies in the natural gas field are subject to changes in price and supply of both conventional and alternative energy sources. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other regulatory policies of domestic and foreign governments. PAPER AND FOREST PRODUCTS PORTFOLIO invests primarily in companies engaged in the manufacture, research, sale, or distribution of paper products, packaging products, building materials (such as lumber and paneling products), and other products related to the paper and forest products industry. Examples of the fund's investments may include paper production companies, printers, and publishers. The success of these companies depends on the health of the economy, worldwide production capacity for the industry's products, and interest rate levels, which may affect product pricing, costs, and operating margins. These variables also affect the level of industry and consumer capital spending for paper and forest products. PRECIOUS METALS AND MINERALS PORTFOLIO invests primarily in companies engaged in exploration, mining, processing or dealing in gold, silver, platinum, diamonds or other precious metals and minerals. In addition to its investments in these securities, the fund's focus includes investments in precious metals, such as gold, silver, and platinum, coins, and securities indexed to the price of gold or other precious metals. The fund may also invest in securities of companies which themselves invest in companies engaged in these activities. The price of precious metals is affected by broad economic and political conditions. For example, the price of gold and other precious metal mining securities can face substantial short-term volatility caused by international monetary and political developments such as currency devaluations or revaluations, economic and social conditions within a country, or trade restrictions between countries. Since much of the world's gold reserves are located in South Africa, the social and economic conditions there can affect gold and gold-related companies located elsewhere. The price precious metals is more affected by broad economic and political conditions. FMR does not currently intend to purchase precious metals if, as a result, more than 25% of the fund's total assets would be invested in precious metals and securities indexed to the price of precious metals. Under current federal tax law, gains from selling precious metals may not exceed 10% of the fund's annual gross income. This tax requirement could cause the fund to hold or sell precious metals or securities when it would not otherwise do so. REGIONAL BANKS PORTFOLIO invests primarily in companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. These companies concentrate their operations in a specific part of the country. This may include, for example, state chartered banks, savings and loan institutions, and banks that are members of the Federal Reserve System. The fund may own securities of U.S. institutions whose deposits are not insured by the federal government. As the services offered by banks expand, banks are becoming more exposed to well-established competitors. This exposure has also increased due to the erosion of historical distinctions between regional banks and other financial institutions. Increased competition may result from the broadening of regional and national interstate banking powers, which has already reduced the number of publicly traded regional banks. In addition, general economic conditions are important to regional banks which face exposure to credit losses, and dependence on interest rate activity. RETAILING PORTFOLIO invests primarily in companies engaged in merchandising finished goods and services primarily to individual consumers. This may include, for example, department stores, food retailers, warehouse membership clubs, mail order operations, or other companies involved in alternative selling methods. The success of retailing companies is closely tied to consumer spending, which is affected by general economic conditions and consumer confidence levels. The retailing industry is highly competitive, and a company's success is often tied to its ability to anticipate changing consumer tastes. SOFTWARE AND COMPUTER SERVICES PORTFOLIO invests primarily in companies engaged in research, design, production or distribution of products or processes that relate to software or information-based services. This may include, for example, companies that design products such as systems level software to run the basic functions of a computer, or applications software for one type of work, and consulting, communications, and related services. Competitive pressures may have a significant effect on the financial condition of companies in the software and computer services industries. For example, an increasing number of companies and new product offerings can lead to aggressive pricing and slower selling cycles. TECHNOLOGY PORTFOLIO invests primarily in companies which FMR believes have, or will develop, products, processes, or services that will provide or will benefit significantly from technological advances and improvements. The description of the technology sector will be interpreted broadly by FMR and may include such products or services as inexpensive computing power such as personal computers, improved methods of communications such as satellite transmission, or labor saving machines or instruments such as computer-aided design equipment. The fund emphasizes those companies positioned to benefit from technological advances in areas such as semiconductors, minicomputers and peripheral equipment, scientific instruments, computer software, communications, and future automation trends in both office and factory settings. Competitive pressures may have a significant effect on the financial condition of companies in the technology industry. For example, if technology continues to advance at an accelerated rate, and the number of companies and product offerings continues to expand, these companies could become increasingly sensitive to short product cycles and aggressive pricing. TELECOMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture, or sale of communications services or communications equipment. Companies in the telecommunications field may range from traditional local and long-distance telephone service or equipment providers, to companies involved in new technologies such as cellular telephone or paging services. Telephone operating companies are subject to both federal and state regulations governing rates of return and services that may be offered. Many companies represented in the fund are engaged in fierce competition for market share. Although telephone companies usually pay an above average dividend, the fund's investment decisions are primarily based on growth potential and not on income. TRANSPORTATION PORTFOLIO invests primarily in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment. Transportation services may include, for example, companies involved in the movement of freight or people such as airlines, railroads, and bus companies, equipment manufacturers, parts suppliers, and companies involved in leasing, maintenance and related services. Transportation stocks are cyclical and have occasional sharp price movements which may result from changes in the economy, fuel prices, labor agreements, and insurance costs. The U.S. has been deregulating these industries, but it is uncertain whether this trend will continue and what its effect will be. UTILITIES PORTFOLIO invests primarily in companies in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. This may include, for example, companies that manufacture, produce, sell, or transmit gas or electric energy, and those involved in telephone, satellite, and other communication fields. Public utility stocks have traditionally produced above-average dividend income, but the fund's investments are based on growth potential. The gas and electric public utilities industries may be subject to broad risks resulting from governmental regulation, financing difficulties, supply and demand of services or fuel, and special risks associated with energy and atmosphere conservation. The fund may not own more than 5% of the outstanding voting securities of more than one public utility company as defined by the Public Utility Holding Company Act of 1935. MONEY MARKET PORTFOLIO seeks to earn a high level of current income while maintaining a stable $1.00 share price by investing in high-quality, short-term money market instruments. As a result, your investment earns income at current money market rates, and when you sell your shares, they should be worth the same amount as when you bought them. Of course, there is no guarantee that the fund will maintain a stable $1.00 share price. The fund invests in U.S. dollar-denominated instruments of domestic and foreign issuers, including banks and other financial institutions, governments and their agencies and instrumentalities, and corporations. The fund stresses income, preservation of capital, and liquidity, and does not seek the higher yields or capital appreciation that more aggressive investments may provide. The fund's yield will vary from day to day, generally reflecting current short-term interest rates and other market conditions. The fund follows industry-standard guidelines on the quality and maturity of its investments, which are designed to help maintain a stable $1.00 share price. The fund will purchase only high-quality securities that FMR believes present minimal credit risks and will observe maturity restrictions on securities it buys. In general, securities with longer maturities are more vulnerable to price changes, although they may provide higher yields. It is possible that a major change in interest rates or a default on the fund's investments could cause its share price (and the value of your investment) to change. SECURITIES AND INVESTMENT PRACTICES The following pages contain more detailed information about types of instruments in which a fund may invest, and strategies FMR may employ in pursuit of a fund's investment objective. A summary of risks and restrictions associated with these instrument types and investment practices is included as well. Policies and limitations are considered at the time of purchase; the sale of instruments is not required in the event of a subsequent change in circumstances. FMR may not buy all of these instruments or use all of these techniques to the full extent permitted unless it believes that doing so will help the funds achieve their goals. As a shareholder, you will receive financial reports every six months detailing fund holdings and describing recent investment activities. EQUITY SECURITIES may include common stocks, preferred stocks, convertible securities, and warrants. Common stocks, the most familiar type, represent an equity (ownership) interest in a corporation. This ownership interest often gives a fund the right to vote on measures affecting the company's organization and operations. Although common stocks have a history of long-term growth in value, their prices tend to fluctuate in the short term, particularly those of smaller companies. DEBT SECURITIES. Bonds and other debt instruments are used by issuers to borrow money from investors. The issuer pays the investor a fixed or variable rate of interest, and must repay the amount borrowed at maturity. Some debt securities, such as zero coupon bonds, do not pay current interest, but are purchased at a discount from their face values. Debt securities, loans, and other direct debt have varying degrees of quality and varying levels of sensitivity to changes in interest rates. Longer-term bonds are generally more sensitive to interest rate changes than short-term bonds. RESTRICTIONS: Each stock fund does not currently intend to invest more than 5% of its assets in lower-quality debt securities, sometimes called "junk bonds" (those rated below Baa by Moody's or BBB by S&P, and unrated securities judged by FMR to be of equivalent quality). FOREIGN SECURITIES and foreign currencies may involve additional risks. These include currency fluctuations, risks relating to political or economic conditions in the foreign country, and the potentially less stringent investor protection and disclosure standards of foreign markets. In addition to the political and economic factors that can affect foreign securities, a governmental issuer may be unwilling to repay principal and interest when due and may require that the conditions for payment be renegotiated. These factors could make foreign investments, especially those in developing countries, more volatile. ADJUSTING INVESTMENT EXPOSURE. A fund can use various techniques to increase or decrease its exposure to changing security prices, interest rates, currency exchange rates, commodity prices, or other factors that affect security values. These techniques may involve derivative transactions such as buying and selling options and futures contracts, entering into currency exchange contracts or swap agreements, purchasing indexed securities, and selling securities short. FMR can use these practices to adjust the risk and return characteristics of a fund's portfolio of investments. If FMR judges market conditions incorrectly or employs a strategy that does not correlate well with the fund's investments, these techniques could result in a loss, regardless of whether the intent was to reduce risk or increase return. These techniques may increase the volatility of the fund and may involve a small investment of cash relative to the magnitude of the risk assumed. In addition, these techniques could result in a loss if the counterparty to the transaction does not perform as promised. REPURCHASE AGREEMENTS. In a repurchase agreement, a fund buys a security at one price and simultaneously agrees to sell it back at a higher price. Delays or losses could result if the other party to the agreement defaults or becomes insolvent. ILLIQUID AND RESTRICTED SECURITIES. Some investments may be determined by FMR, under the supervision of the Board of Trustees, to be illiquid, which means that they may be difficult to sell promptly at an acceptable price. The sale of other securities may be subject to legal restrictions. Difficulty in selling securities may result in a loss or may be costly to a fund. RESTRICTIONS: A fund may not purchase a security if, as a result, more than 10% of its assets would be invested in illiquid securities. U.S. GOVERNMENT SECURITIES are high-quality debt securities issued or guaranteed by the U.S. Treasury or by an agency or instrumentality of the U.S. government. Not all U.S. government securities are backed by the full faith and credit of the United States. For example, securities issued by the Federal Farm Credit Bank or by the Federal National Mortgage Association are supported by the instrumentality's right to borrow money from the U.S. Treasury under certain circumstances. However, securities issued by the Financing Corporation are supported only by the credit of the entity that issued them. ASSET-BACKED SECURITIES may include pools of mortgages, loans, receivables, or other assets. Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities. OTHER MONEY MARKET INSTRUMENTS may include commercial paper, certificates of deposit, bankers' acceptances, time deposits, and short-term corporate obligations. These instruments may carry fixed or variable interest rates. STRIPPED SECURITIES are the separate income or principal components of a debt instrument. These involve risks that are similar to those of other debt securities, although they may be more volatile. WHEN-ISSUED AND DELAYED-DELIVERY TRANSACTIONS are trading practices in which payment and delivery for the securities take place at a future date. The market value of a security could change during this period, which could affect the market value of a fund's assets. REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund temporarily transfers possession of a portfolio instrument to another party in return for cash. This could increase the risk of fluctuation in a fund's yield or in the market value of its assets. DIVERSIFICATION. Diversifying a fund's investment portfolio can reduce the risks of investing. This may include limiting the amount of money invested in any one issuer or, on a broader scale, in any one industry. A fund that is not diversified may be more sensitive to changes in the market value of a single issuer or industry. RESTRICTIONS: The stock funds (except Financial Services, Home Finance, and Regional Banks Portfolios) are considered non-diversified. Generally, to meet federal tax requirements at the close of each quarter, a stock fund does not invest more than 25% of its total assets in any one issuer and, with respect to 50% of total assets, does not invest more than 5% of its total assets in any one issuer. With respect to 75% of total assets, Financial Services Portfolio, Regional Banks Portfolio, and Home Finance Portfolio may not invest more than 5% of their total assets in any one issuer. The money market fund may not invest more than 5% of its total assets in the securities of any one issuer, except that it may invest up to 10% of its assets in the highest-quality securities of a single issuer for up to three days. Each stock fund normally invests at least 80% , but always at least 25%, of its assets in securities of companies principally engaged in the business activities identified for that fund. For Precious Metals and Minerals Portfolio, the fund normally invests at least 80% of its total assets in securities of companies principally engaged in the business activities identified for the fund, precious metals, and instruments whose value is linked to the price of precious metals. The money market fund may not invest more than 25% of its total assets in any one industry (other than the financial services industry; see below). These limitations do not apply to U.S. government securities. FINANCIAL SERVICES INDUSTRY. Companies in the financial services industry are subject to various risks related to that industry, such as government regulation, changes in interest rates, and exposure on loans, including loans to foreign borrowers. If a fund invests substantially in this industry, its performance may be affected by conditions affecting the industry. RESTRICTIONS: The money market fund will invest more than 25% of its total assets in the financial services industry. BORROWING. A fund may borrow from banks or from other funds advised by FMR, or through reverse repurchase agreements. If a stock fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If the fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage. RESTRICTIONS: A fund may borrow only for temporary or emergency purposes, but not in an amount exceeding 33% of its total assets. LENDING. Lending securities to broker-dealers and institutions, including FBSI, an affiliate of FMR, is a means of earning income. This practice could result in a loss or a delay in recovering a fund's securities. A fund may also lend money to other funds advised by FMR. RESTRICTIONS: Loans, in the aggregate, may not exceed 33% of a fund's total assets. FUNDAMENTAL INVESTMENT POLICIES AND RESTRICTIONS Some of the policies and restrictions discussed on the preceding pages are fundamental, that is, subject to change only by shareholder approval. The following paragraphs restate all those that are fundamental. All policies stated throughout this prospectus, other than those identified in the following paragraphs, can be changed without shareholder approval. AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the regional, national and international movement of passengers, mail, and freight via aircraft. AMERICAN GOLD PORTFOLIO invests primarily in companies engaged in exploration, mining, processing, or dealing in gold, or, to a lesser degree, in silver, platinum, diamonds, or other precious metals and minerals. Normally at least 80% of the fund's assets will be invested in securities of North, Central and South American companies engaged in gold-related activities, and in gold bullion or coins. The fund is authorized to invest up to 50% of its total assets in gold bullion or coins. AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the research, development, scale up and manufacture of various biotechnological products, services and processes. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO invests primarily in companies engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. A company is principally engaged in the industry if it derives more than 15% of revenues or profits from brokerage or investment management activities. CHEMICALS PORTFOLIO invests primarily in companies engaged in the research, development, manufacture or marketing of products or services related to the chemical process industries. COMPUTERS PORTFOLIO invests primarily in companies engaged in research, design, development, manufacture or distribution of products, processes or services that relate to currently available or experimental hardware technology within the computer industry. CONSTRUCTION AND HOUSING PORTFOLIO invests primarily in companies engaged in the design and construction of residential, commercial, industrial and public works facilities, as well as companies engaged in the manufacture, supply, distribution or sale of products or services to these construction industries. CONSUMER PRODUCTS PORTFOLIO invests primarily in companies engaged in the manufacture and distribution of goods to consumers both domestically and internationally. DEFENSE AND AEROSPACE PORTFOLIO invests primarily in companies engaged in the research, manufacture or sale of products or services related to the defense or aerospace industries. DEVELOPING COMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture or sale of emerging communications services or equipment. ELECTRONICS PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of electronic components (semiconductors, connectors, printed circuit boards and other components); equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. ENERGY PORTFOLIO invests primarily in companies in the energy field, including the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. ENERGY SERVICE PORTFOLIO invests primarily in companies in the energy service field, including those that provide services and equipment to the conventional areas of oil, gas, electricity and coal, and newer sources of energy such as nuclear, geothermal, oil shale and solar power. ENVIRONMENTAL SERVICES PORTFOLIO invests primarily in companies engaged in the research, development, manufacture or distribution of products, processes or services related to waste management or pollution control. FINANCIAL SERVICES PORTFOLIO invests primarily in companies providing financial services to consumers and industry. A company is principally engaged in the industry if it derives more than 15% of revenues or profits from brokerage or investment management activities. FOOD AND AGRICULTURE PORTFOLIO invests primarily in companies engaged in the manufacture, sale or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. HEALTH CARE PORTFOLIO invests primarily in companies engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. HOME FINANCE PORTFOLIO invests primarily in companies engaged in investing in real estate, usually through mortgages and other consumer-related loans. INDUSTRIAL EQUIPMENT PORTFOLIO invests primarily in companies engaged in the manufacture, distribution or service of products and equipment for the industrial sector, including integrated producers of capital equipment (such as general industry machinery, farm equipment, and computers), parts suppliers and subcontractors. INDUSTRIAL MATERIALS PORTFOLIO invests primarily in companies engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. INSURANCE PORTFOLIO invests primarily in companies engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. LEISURE PORTFOLIO invests primarily in companies engaged in the design, production, or distribution of goods or services in the leisure industries. MEDICAL DELIVERY PORTFOLIO invests primarily in companies engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. MULTIMEDIA PORTFOLIO invests primarily in companies engaged in the development, production, sale and distribution of goods or services used in the broadcast and media industries. NATURAL GAS PORTFOLIO invests primarily in companies engaged in the production, transmission, and distribution of natural gas, and involved in the exploration of potential natural gas sources, as well as those companies that provide services and equipment to natural gas producers, refineries, cogeneration facilities, converters, and distributors. PAPER AND FOREST PRODUCTS PORTFOLIO invests primarily in companies engaged in the manufacture, research, sale, or distribution of paper products, packaging products, building materials (such as lumber and paneling products), and other products related to the paper and forest products industry. PRECIOUS METALS AND MINERALS PORTFOLIO invests primarily in companies engaged in exploration, mining, processing or dealing in gold, silver, platinum, diamonds or other precious metals and minerals. Under normal conditions, the fund will invest at least 80% of its total assets in (i) securities of companies principally engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and (ii) precious metals. The fund is authorized to invest up to 50% of its total assets in precious metals. REGIONAL BANKS PORTFOLIO invests primarily in companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. RETAILING PORTFOLIO invests primarily in companies engaged in merchandising finished goods and services primarily to individual consumers. SOFTWARE AND COMPUTER SERVICES PORTFOLIO invests primarily in companies engaged in research, design, production or distribution of products or processes that relate to software or information-based services. TECHNOLOGY PORTFOLIO invests primarily in companies which FMR believes have, or will develop, products, processes or services that will provide or will benefit significantly from technological advances and improvements. TELECOMMUNICATIONS PORTFOLIO invests primarily in companies engaged in the development, manufacture, or sale of communications services or communications equipment. TRANSPORTATION PORTFOLIO invests primarily in companies engaged in providing transportation services or companies engaged in the design, manufacture, distribution, or sale of transportation equipment. UTILITIES PORTFOLIO invests primarily in companies in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. MONEY MARKET PORTFOLIO seeks to provide high current income, consistent with preservation of capital and liquidity, by investing in a broad range of high quality money market instruments. At all times, 80% or more of the fund's assets will be invested in money market instruments. The fund may not invest more than 25% of its total assets in any one industry, except that the fund will invest more than 25% of its total assets in the financial services industry. EACH STOCK FUND seeks capital appreciation. The funds seek to achieve this objective by investing primarily in equity securities, including common stocks and securities convertible into common stocks, and for American Gold Portfolio and Precious Metals and Minerals Portfolio, in certain precious metals. Normally, at least 80%, and in no event less than 25%, of a stock fund's assets will be invested in securities of companies principally engaged in the business activities identified for that fund (except Precious Metals and Minerals Portfolio). For the purposes of these policies, a company is considered to be "principally engaged" in a designated business activity (unless otherwise noted) if at least 50% of its assets, gross income, or net profits are committed to, or derived from, that activity. FMR does not place any emphasis on income when selecting securities for the stock funds, except when it believes that income may have a favorable effect on a security's market value. When FMR considers it appropriate for defensive purposes, each stock fund may temporarily invest substantially in investment-grade debt securities. EACH FUND may borrow only for temporary or emergency purposes or engage in reverse repurchase agreements, but not in an amount exceeding 33% of its total assets. Loans, in the aggregate, may not exceed 33% of total assets. BREAKDOWN OF EXPENSES Like all mutual funds, the funds pay expenses related to their daily operations. Expenses paid out of a fund's assets are reflected in its share price or dividends; they are neither billed directly to shareholders nor deducted from shareholder accounts. Each fund pays a MANAGEMENT FEE to FMR for managing its investments and business affairs. FMR in turn pays fees to affiliates who provide assistance with these services for the funds. Each fund also pays OTHER EXPENSES, which are explained at right. FMR may, from time to time, agree to reimburse the funds for management fees and other expenses above a specified limit. FMR retains the ability to be repaid by a fund if expenses fall below the specified limit prior to the end of the fiscal year. Reimbursement arrangements, which may be terminated at any time without notice, decrease a fund's expenses and boost its performance. MANAGEMENT FEE EACH STOCK FUND'S management fee is calculated and paid to FMR every month. The fee for each fund is calculated by adding a group fee rate to an individual fund fee rate, and multiplying the result by the respective fund's average net assets. The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above .52%, and it drops as total assets under management increase. For February 1994, the group fee rate was ____%. The individual fund fee rate is .30% for the stock funds. The total management fee for fiscal 1994 was ___%. THE MONEY MARKET FUND'S management fee is calculated by multiplying the sum of two components by the fund's average net assets and adding an income-based fee. One component, the group fee rate, is based on the average net assets of all the mutual funds advised by FMR. It cannot rise above .37% and it drops as total assets, under management increase. The other component, the individual fund fee rate, is .03%. The income-based fee is 6% of the fund's gross income in excess of a 5% yield and cannot rise above .24% of the fund's average net assets. For February, 1994, the group fee rate was ___%. The money market's total management fee for fiscal 1994 was ___%. FMR HAS SUB-ADVISORY AGREEMENTS with FMR U.K. and FMR Far East on behalf of the stock funds (except American Gold Portfolio). These sub-advisers provide FMR with investment research and advice on companies based outside the United States. Under the sub-advisory agreements, FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively, of the costs of providing these services. The sub-advisers may also provide investment management services. In return, FMR pays FMR U.K. and FMR Far East 50% of its management fee rate with respect to a fund's investments that the sub-adviser manage on a discretionary basis. FMR HAS A SUB-ADVISORY AGREEMENT with FTX, which has primary responsibility for providing investment management for the money market fund, while FMR retains responsibility for providing other management services. FMR pays FTX 50% of its management fee (before expense reimbursements) for these services. FMR paid FTX __% of the money market fund's average net assets for fiscal 1994. OTHER EXPENSES While the management fee is a significant component of the funds' annual operating costs, the funds have other expenses as well. The funds contract with FSC to perform many transaction and accounting functions. These services include processing shareholder transactions, valuing the funds' investments, and handling securities loans. In fiscal 1994 the funds paid FSC the fees outlined in the following chart: Fee to Fund FSC Air Transportation .___% American Gold .___% Automotive .___% Biotechnology .___% Brokerage and Investment Management .___% Chemicals .___% Computers .___% Construction and Housing .___% Consumer Products .___% Defense and Aerospace .___% Developing Communications .___% Electronics .___% Energy .___% Energy Service .___% Environmental Services .___% Financial Services .___% Food and Agriculture .___% Health Care .___% Home Finance .___% Industrial Equipment .___% Industrial Materials .___% Insurance .___% Leisure .___% Medical Delivery .___% Multimedia .___% Natural Gas .___% Paper and Forest Products .___% Precious Metals and Minerals .___% Regional Banks .___% Retailing .___% Software and Computer Services .___% Technology .___% Telecommunications .___% Transportation .___% Utilities .___% Money Market .___% The funds also pay other expenses, such as legal, audit, and custodian fees; proxy solicitation costs; and the compensation of trustees who are not affiliated with Fidelity. Each fund's turnover rate varies from year to year, depending on market conditions. These rates vary from year to year. High turnover rates increase transaction costs, and may increase taxable capital gains. Of course, FMR considers these effects when evaluating the anticipated benefits of short-term investing. The funds' portfolio turnover rates for fiscal 1994 were as follows: Fund Turnover % Air Transportation .___% American Gold .___% Automotive .___% Biotechnology .___% Brokerage and Investment Management .___% Chemicals .___% Computers .___% Construction and Housing .___% Consumer Products .___% Defense and Aerospace .___% Developing Communications .___% Electronics .___% Energy .___% Energy Service .___% Environmental Services .___% Financial Services .___% Food and Agriculture .___% Health Care .___% Home Finance .___% Industrial Equipment .___% Industrial Materials .___% Insurance .___% Leisure .___% Medical Delivery .___% Multimedia .___% Natural Gas .___% Paper and Forest Products .___% Precious Metals and Minerals .___% Regional Banks .___% Retailing .___% Software and Computer Services .___% Technology .___% Telecommunications .___% Transportation .___% Utilities .___% Money Market n/a YOUR ACCOUNT DOING BUSINESS WITH FIDELITY Fidelity Investments was established in 1946 to manage one of America's first mutual funds. Today, Fidelity is the largest mutual fund company in the country, and is known as an innovative provider of high-quality financial services to individuals and institutions. In addition to its mutual fund business, the company operates one of America's leading discount brokerage firms, Fidelity Brokerage Services, Inc. (FBSI). Fidelity is also a leader in providing tax-sheltered retirement plans for individuals investing on their own or through their employer. Fidelity is committed to providing investors with practical information to make investment decisions. Based in Boston, Fidelity provides customers with complete service 24 hours a day, 365 days a year, through a network of telephone service centers around the country. To reach Fidelity for general information, call these numbers: (bullet) For mutual funds, 1-800-544-8888 (bullet) For brokerage, 1-800-544-7272 If you would prefer to speak with a representative in person, Fidelity has over __ walk-in Investor Centers across the country. TYPES OF ACCOUNTS You may set up an account directly in the funds or, if you own or intend to purchase individual securities as part of your total investment portfolio, you may consider investing in a fund through a Fidelity brokerage account. If you are investing through FBSI or another financial institution or investment professional, refer to its program materials for any special provisions regarding your investment in a fund. The different ways to set up (register) your account with Fidelity are listed at right. The account guidelines that follow may not apply to certain retirement accounts. If your employer offers a fund through a retirement program, contact your employer for more information. Otherwise, call Fidelity directly. WAYS TO SET UP YOUR ACCOUNT INDIVIDUAL OR JOINT TENANT FOR YOUR GENERAL INVESTMENT NEEDS Individual accounts are owned by one person. Joint accounts can have two or more owners (tenants). RETIREMENT TO SHELTER YOUR RETIREMENT SAVINGS FROM TAXES Retirement plans allow individuals to shelter investment income and capital gains from current taxes. In addition, contributions to these accounts may be tax deductible. Retirement accounts require special applications and typically have lower minimums. INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) allow anyone of legal age and under 70 with earned income to save up to $2,000 per tax year. If your spouse has earned income of less than $250 per year, you can invest an additional $250 per year in your spouse's name. ROLLOVER IRAS retain special tax advantages for certain distributions from employer-sponsored retirement plans. KEOGH OR CORPORATE PROFIT SHARING AND MONEY PURCHASE PENSION PLANS allow self-employed individuals or small business owners (and their employees) to make tax deductible contributions for themselves and any eligible employees up to $30,000 per year. SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) provide small business owners or those with self-employed income (and their eligible employees) with many of the same advantages as a Keogh, but with fewer administrative requirements. 403(B) CUSTODIAL ACCOUNTS are available to employees of most tax-exempt institutions, including schools, hospitals, and other charitable organizations. 401(K) PROGRAMS allow employees of corporations of all sizes to contribute a percentage of their wages on a tax-deferred basis. These accounts need to be established by the trustee of the plan. GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA) TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS These custodial accounts provide a way to give money to a child and obtain tax benefits. An individual can give up to $10,000 a year per child without paying federal gift tax. Depending on state laws, you can set up a custodial account under the Uniform Gifts to Minors Act (UGMA) or the Uniform Transfers to Minors Act (UTMA). TRUST FOR MONEY BEING INVESTED BY A TRUST The trust must be established before an account can be opened. BUSINESS OR ORGANIZATION FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS, INSTITUTIONS, OR OTHER GROUPS Requires a special application. HOW TO BUY SHARES Shares are purchased at the next share price calculated after your investment is received and accepted. Share price is normally calculated hourly, each business day, from 10 a.m. to 4 p.m. Eastern time. IF YOU ARE NEW TO FIDELITY, complete and sign an account application and mail it along with your check. You may also open your account in person or by wire as described at right. If there is no application accompanying this prospectus, call 1-800-544-8888. IF YOU ALREADY HAVE MONEY INVESTED IN A FIDELITY FUND, you can: (bullet) Mail in an application with a check, or (bullet) Open your account by exchanging from another Fidelity fund. IF YOU ARE INVESTING THROUGH A TAX-SHELTERED RETIREMENT PLAN, such as an IRA, for the first time, you will need a specially marked application. Retirement investing also involves its own investment procedures. Call 1-800-544-8888 for more information and a retirement application. If you buy shares by check or Fidelity Money Line(Registered trademark) and then sell those shares by any method other than by exchange to another Fidelity fund, the payment may be delayed for up to seven business days to ensure that your previous investment has cleared. SHARE PRICE Once each hour of every business day, two share prices are calculated for each fund: the offering price and the net asset value (NAV). The offering price includes the sales charge, if any, which you pay when you buy shares, unless you qualify for a deduction or waiver as described on page xx. When you buy shares at the offering price, Fidelity deducts the amount of any sales charge and invests the rest at the NAV. MINIMUM INVESTMENTS TO OPEN AN ACCOUNT $2,500 For Fidelity retirement accounts $500 TO ADD TO AN ACCOUNT $250 For Fidelity retirement accounts $250 Through automatic investment plans $100 MINIMUM BALANCE $1,000 For Fidelity retirement accounts $500 FEES AND KEY INFORMATION IF YOU SELL SHARES OF A STOCK FUND AFTER HOLDING THEM 29 DAYS OR LESS, THE FUND WILL DEDUCT A REDEMPTION FEE EQUAL TO .75% OF THE VALUE OF THOSE SHARES. FOR SHARES HELD 30 DAYS OR LONGER, THE REDEMPTION FEE IS UP TO $7.50. IN ADDITION, THERE MAY BE A $7.50 FEE FOR EACH EXCHANGE OUT OF A STOCK FUND.
PHONE 1-800-544-7777 ALL ACCOUNT TYPES EXCEPT RETIREMENT (bullet) Maximum check request: $100,000. (bullet) For Money Line transfers to your bank account; minimum: $10; maximum: $100,000. ALL ACCOUNT TYPES (bullet) You may exchange to other Fidelity funds if both accounts are registered with the same name(s), address, and taxpayer ID number. MAIL OR IN PERSON INDIVIDUAL, JOINT TENANTS, SOLE PROPRIETORSHIPS, UGMA, UTMA (bullet) The letter of instruction must be signed by all persons required to sign for transactions, exactly as their names appear on the account. RETIREMENT ACCOUNTS (bullet) The account owner should complete a retirement distribution form. Call 1-800-544-6666 to request one. TRUSTS (bullet) The trustee must sign the letter indicating capacity as trustee. If the trustee's name is not in the account registration, provide a copy of the trust document certified within the last 60 days. BUSINESSES OR ORGANIZATIONS (bullet) At least one person authorized by corporate resolution to act on the account must sign the letter. (bullet) Include a corporate resolution with corporate seal or a signature guarantee. EXECUTORS, ADMINISTRATORS, CONSERVATORS, GUARDIANS (bullet) Call 1-800-544-6666 for instructions. WIRE ALL ACCOUNT TYPES EXCEPT RETIREMENT (bullet) You must sign up for the wire feature before using it. To verify that it is in place, call 1-800-544-6666. Minimum wire: $5,000. (bullet) Your wire redemption request must be received by Fidelity before 4 p.m. Eastern time for money to be wired on the next business day.
(TDD_GRAPHIC) TDD - SERVICE FOR THE DEAF AND HEARING-IMPAIRED: 1-800-544-0118 HOW TO SELL SHARES You can arrange to take money out of your fund account at any time by selling (redeeming) some or all of your shares. Your shares will be sold at the next share price calculated after your order is received and accepted. Share price is normally calculated hourly, each business day, from 10 a.m. to 4 p.m. Eastern time. Before the fund's current 3% sales charge became effective the funds' shares were sold with a 2% sales charge and a 1% deferred sales charge. The deferred sales charge applies to redemptions of fund shares (including Select Cash Reserves) purchased prior to October 12, 1990, but does not apply to exchanges between Select funds, or if you qualify for a sales charge waiver. TO SELL SHARES IN A NON-RETIREMENT ACCOUNT, you may use any of the methods described on this page. TO SELL SHARES IN A FIDELITY RETIREMENT ACCOUNT, your request must be made in writing, except for exchanges to other Fidelity funds, which can be requested by phone or in writing. Call 1-800-544-6666 for a retirement distribution form. IF YOU ARE SELLING SOME BUT NOT ALL OF YOUR SHARES, leave at least $1,000 worth of shares in the account to keep it open ($500 for retirement accounts). TO SELL SHARES BY BANK WIRE OR FIDELITY MONEY LINE, you will need to sign up for these services in advance. CERTAIN REQUESTS MUST INCLUDE A SIGNATURE GUARANTEE. It is designed to protect you and Fidelity from fraud. Your request must be made in writing and include a signature guarantee if any of the following situations apply: (bullet) You wish to redeem more than $100,000 worth of shares, (bullet) Your account registration has changed within the last 30 days, (bullet) The check is not being mailed to the address on your account (record address), (bullet) The check is not being made out to the account owner, or (bullet) The redemption proceeds are being transferred to a Fidelity account with a different registration. You should be able to obtain a signature guarantee from a bank, broker (including Fidelity Investor Centers), dealer, credit union (if authorized under state law), securities exchange or association, clearing agency, or savings association. A notary public cannot provide a signature guarantee. FEES AND KEY INFORMATION IF YOU SELL SHARES OF A STOCK FUND AFTER HOLDING THEM 29 DAYS OR LESS, THE FUND WILL DEDUCT A REDEMPTION FEE EQUAL TO .75% OF THE VALUE OF THOSE SHARES. FOR SHARES HELD 30 DAYS OR LONGER, THE REDEMPTION FEE IS UP TO $7.50. IN ADDITION, THERE MAY BE A $7.50 FEE FOR EACH EXCHANGE OUT OF A STOCK FUND.
PHONE 1-800-544-7777 ALL ACCOUNT TYPES EXCEPT RETIREMENT (bullet) Maximum check request: $100,000. (bullet) For Money Line transfers to your bank account; minimum: $10; maximum: $100,000. ALL ACCOUNT TYPES (bullet) You may exchange to other Fidelity funds if both accounts are registered with the same name(s), address, and taxpayer ID number. MAIL OR IN PERSON INDIVIDUAL, JOINT TENANTS, SOLE PROPRIETORSHIPS, UGMA, UTMA (bullet) The letter of instruction must be signed by all persons required to sign for transactions, exactly as their names appear on the account. RETIREMENT ACCOUNTS (bullet) The account owner should complete a retirement distribution form. Call 1-800-544-6666 to request one. TRUSTS (bullet) The trustee must sign the letter indicating capacity as trustee. If the trustee's name is not in the account registration, provide a copy of the trust document certified within the last 60 days. BUSINESSES OR ORGANIZATIONS (bullet) At least one person authorized by corporate resolution to act on the account must sign the letter. (bullet) Include a corporate resolution with corporate seal or a signature guarantee. EXECUTORS, ADMINISTRATORS, CONSERVATORS, GUARDIANS (bullet) Call 1-800-544-6666 for instructions. WIRE ALL ACCOUNT TYPES EXCEPT RETIREMENT (bullet) You must sign up for the wire feature before using it. To verify that it is in place, call 1-800-544-6666. Minimum wire: $5,000. (bullet) Your wire redemption request must be received by Fidelity before 4 p.m. Eastern time for money to be wired on the next business day.
(TDD_GRAPHIC) TDD - SERVICE FOR THE DEAF AND HEARING-IMPAIRED: 1-800-544-0118 SELLING SHARES IN WRITING Write a "letter of instruction" with: (bullet) Your name (bullet) Your fund's name (bullet) Your fund account number, (bullet) The dollar amount or number of shares to be redeemed, and (bullet) Any other applicable requirements. Unless otherwise instructed, Fidelity will send a check to the record address. Deliver your letter to a Fidelity Investor Center, or mail it to: Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 INVESTOR SERVICES Fidelity provides a variety of services to help you manage your account. INFORMATION SERVICES FIDELITY'S TELEPHONE REPRESENTATIVES are available 24 hours a day, 365 days a year. Whenever you call, you can speak with someone equipped to provide the information or service you need. STATEMENTS AND REPORTS that Fidelity sends to you include the following: (bullet) Confirmation statements (after every transaction, except reinvestments, that affects your account balance or your account registration) (bullet) Account statements (quarterly) (bullet) Fund reports (every six months) To reduce expenses, only one copy of most fund reports will be mailed to your household, even if you have more than one account in the fund. Call 1-800-544-6666 if you need copies of fund reports or historical account information. TRANSACTION SERVICES EXCHANGE PRIVILEGE. You may sell your fund shares and buy shares of other Fidelity funds by telephone or written exchange. The shares you exchange will carry credit for any sales charge you previously paid in connection with their purchase. There is a $7.50 fee for each exchange out of a stock fund, unless you place your transaction on Fidelity's automated exchange services. This fee would apply in addition to the redemption fees which you pay every time you sell your shares. For exchanges made by mail, orders are executed: (bullet) Between Select funds, or from a Fidelity money market fund generally at 10:00 a.m. the day after the order is received. (bullet) From another Fidelity stock or bond fund, generally at 4:00 p.m. For exchanges made by phone, orders are executed: (bullet) From a Select fund or from a Fidelity money market fund, at the next hourly price following acceptance of your order. (bullet) From another Fidelity stock or bond fund, at the 4:00 p.m. price next determined after your order is accepted. Note that exchanges between Select funds are unlimited, but exchanges out of the funds to other Fidelity funds are limited to four per calendar year and that exchanges may have tax consequences for you. For complete policies and restrictions governing exchanges, including circumstances under which a shareholder's exchange privilege may be suspended or revoked, see page . SYSTEMATIC WITHDRAWAL PLANS let you set up monthly or quarterly redemptions from your account. FIDELITY MONEY LINE(Registered trademark) enables you to transfer money by phone between your bank account and your fund account. Most transfers are complete within three business days of your call. REGULAR INVESTMENT PLANS One easy way to pursue your financial goals is to invest money regularly. Fidelity offers convenient services that let you transfer money into your fund account, or between fund accounts, automatically. While regular investment plans do not guarantee a profit and will not protect you against loss in a declining market, they can be an excellent way to invest for retirement, a home, educational expenses, and other long-term financial goals. Certain restrictions apply for retirement accounts. Call 1-800-544-6666 for more information. REGULAR INVESTOR PLANS FIDELITY AUTOMATIC ACCOUNT BUILDER SM TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND MINIMUM FREQUENCY SETTING UP OR CHANGING $100 Monthly or (bullet) For a new account, quarterly complete the appropriate section on the fund application. (bullet) For existing accounts, call 1-800-544-6666 for an application. (bullet) To change the amount or frequency of your investment, call 1-800- 544-6666 at least three business days prior to your next scheduled investment date. DIRECT DEPOSIT TO SEND ALL OR A PORTION OF YOUR PAYCHECK OR GOVERNMENT CHECK TO A FIDELITY FUNDA MINIMUM FREQUENCY SETTING UP OR CHANGING $100 Every pay (bullet) Not available for Select period stock funds. (bullet) Check the appropriate box on the fund application, or call 1-800-544-6666 for an authorization form. (bullet) Changes require a new authorization form. FIDELITY AUTOMATIC EXCHANGE SERVICE TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND MINIMUM FREQUENCY SETTING UP OR CHANGING $100 Every pay (bullet) Check the appropriate period box on the fund application, or call 1-800-544-6666 for an authorization form. (bullet) Changes require a new authorization form. A BECAUSE THEIR SHARE PRICES FLUCTUATE, THE STOCK FUNDS MAY NOT BE APPROPRIATE CHOICES FOR DIRECT DEPOSIT OF YOUR ENTIRE CHECK. SHAREHOLDER AND ACCOUNT POLICIES DIVIDENDS, CAPITAL GAINS, AND TAXES Each stock fund distributes substantially all of its net investment income and capital gains to shareholders each year, normally in April and December. Income dividends for the money market fund are declared daily and paid monthly. DISTRIBUTION OPTIONS When you open an account, specify on your application how you want to receive your distributions. If the option you prefer is not listed on the application, call 1-800-544-6666 for instructions. Each fund offers four options (three for the money market fund): 1. REINVESTMENT OPTION. Your dividend and capital gain distributions will be automatically reinvested in additional shares of the fund. If you do not indicate a choice on your application, you will be assigned this option. 2. INCOME-EARNED OPTION. Your capital gain distributions will be automatically reinvested, but you will be sent a check for each dividend distribution. This option is not available for the money market fund. 3. CASH OPTION. You will be sent a check for each dividend and capital gain distribution. 4. DIRECTED DIVIDENDS(Registered trademark) OPTION. Your dividend and capital gain distributions will be automatically invested in another identically registered Fidelity fund. Call 1-800-544-6666 for more information. FOR RETIREMENT ACCOUNTS, all distributions are automatically reinvested. When you are over 59 years old, you can receive distributions in cash. For the stock funds, distributions will be reinvested, or deducted from the share price, at 10:00 a.m. on the ex-dividend date. Shareholders of record at 4:00 p.m. on the business day before the ex-dividend will be entitled to receive the distribution. For the money market fund, dividends will be reinvested at 4:00 p.m. of the last day of the month. Cash distribution checks will be mailed within seven days. TAXES As with any investment, you should consider how your investment in the fund will be taxed. If your account is not a tax-deferred retirement account, you should be aware of the following tax implications: TAXES ON DISTRIBUTIONS. Distributions are subject to federal income tax, and may also be subject to state or local taxes. If you live outside the United States, your distributions could also be taxed by the country in which you reside. Your distributions are taxable when they are paid, whether you take them in cash or reinvest them in additional shares. However, distributions declared in December and paid in January are taxable as if they were paid on December 31. For federal tax purposes, each fund's income and short-term capital gain distributions are taxed as dividends; long-term capital gain distributions are taxed as long-term capital gains. Every January, Fidelity will send you and the IRS a statement showing the taxable distributions paid to you in the previous year. TAXES ON TRANSACTIONS. Your redemptions - including exchanges to other Fidelity funds - are subject to capital gains tax. A capital gain or loss is the difference between the cost of your shares and the price you receive when you sell them. UNDERSTANDING DISTRIBUTIONS As a fund shareholder, you are entitled to your share of the fund's net income and gains on its investments. The fund passes these earnings along to its investors as DISTRIBUTIONS. Each fund earns dividends from stocks and interest from bond, money market and other investments. These are passed along as DIVIDEND DISTRIBUTIONS. A fund realizes capital gains whenever it sells securities for a higher price than it paid for them. These are passed along as CAPITAL GAIN DISTRIBUTIONS. (checkmark) Whenever you sell shares of a fund, Fidelity will send you a confirmation statement showing how many shares you sold and at what price. You will also receive a consolidated transaction statement every January. However, it is up to you or your tax preparer to determine whether this sale resulted in a capital gain and, if so, the amount of tax to be paid. Be sure to keep your regular account statements; the information they contain will be essential in calculating the amount of your capital gains. "BUYING A DIVIDEND." If you buy shares just before a fund deducts a distribution from its share price, you will pay the full price for the shares and then receive a portion of the price back as a taxable distribution. There are some tax requirements that all funds must follow in order to avoid federal taxation. In its effort to adhere to these requirements, a fund may have to limit its investment activity in some types of instruments. TRANSACTION DETAILS THE FUNDS ARE OPEN FOR BUSINESS each day the New York Stock Exchange (NYSE) is open. Fidelity normally calculates each fund's net asset value and offering price, hourly, from 10:00 a.m. to 4:00 p.m. each business day of the NYSE. EACH FUND'S NAV is the value of a single share. The NAV is computed by adding up the value of the fund's investments, cash, and other assets, subtracting its liabilities, and then dividing the result by the number of shares outstanding. The stock funds' portfolio securities and other assets are valued primarily on the basis of market quotations or, if quotations are not readily available, by a method that the Board of Trustees believes accurately reflects fair value. Foreign securities are valued on the basis of quotations from the primary market in which they are traded, and are translated from the local currency into U.S. dollars using current exchange rates. The money market fund values the securities it owns on the basis of amortized cost. This method minimizes the effect of changes in a security's market value and helps the fund to maintain a stable $1.00 share price. EACH FUND'S OFFERING PRICE (price to buy one share)is the fund's NAV plus a sales charge. The sales charge is 3% of the offering price, or 3.09% of the net amount invested. The REDEMPTION PRICE (price to sell one share) is the fund's NAV plus a redemption fee of $7.50 or of 1% of the value of your redemptions depending on how long your shares were held. Exchanges will also be charged an additional $7.50 fee. WHEN YOU SIGN YOUR ACCOUNT APPLICATION, you will be asked to certify that your Social Security or taxpayer identification number is correct and that you are not subject to 31% backup withholding for failing to report income to the IRS. If you violate IRS regulations, the IRS can require a fund to withhold 31% of your taxable distributions and redemptions. YOU MAY INITIATE MANY TRANSACTIONS BY TELEPHONE. Note that Fidelity will not be responsible for any losses resulting from unauthorized transactions if it follows reasonable procedures designed to verify the identify of the caller. Fidelity will request personalized security codes or other information, and may also record calls. You should verify the accuracy of your confirmation statements immediately after you receive them. If you do not want the ability to redeem and exchange by telephone, call Fidelity for instructions. IF YOU ARE UNABLE TO REACH FIDELITY BY PHONE (for example, during periods of unusual market activity), consider placing your order by mail or by visiting a Fidelity Investor Center. EACH FUND RESERVES THE RIGHT TO SUSPEND THE OFFERING OF SHARES for a period of time. Each fund also reserves the right to reject any specific purchase order, including certain purchases by exchange. See "Exchange Restrictions" on page . Purchase orders may be refused if, in FMR's opinion, they are of a size that would disrupt management of a fund. WHEN YOU PLACE AN ORDER TO BUY SHARES, your order will be processed at the next offering price calculated after your order is received and accepted. Note the following: (bullet) All of your purchases must be made in U.S. dollars and checks must be drawn on U.S. banks. (bullet) Fidelity does not accept cash. (bullet) When making a purchase with more than one check, each check must have a value of at least $50. (bullet) Each fund reserves the right to limit the number of checks processed at one time. (bullet) If your check does not clear, your purchase will be cancelled and you could be liable for any losses or fees a fund or its transfer agent has incurred. (bullet) If you do not specify a particular stock fund, your investment will be made in the money market fund until FSC receives instructions from you. TO AVOID THE COLLECTION PERIOD associated with check and Money Line purchases, consider buying shares by bank wire, U.S. Postal money order, U.S. Treasury check, Federal Reserve check, or Direct Deposit instead. YOU MAY BUY OR SELL SHARES OF THE FUNDS THROUGH A BROKER, who may charge you a fee for this service. If you invest through a broker or other institution, read its program materials for service features or fees that this prospectus may not mention. Fidelity Brokerage Services, Inc. (FBSI) established a program permitting customers with Fidelity brokerage accounts to sell short shares of Select stock funds. FMR reserves the right to suspend the short selling program at any time in the future. CERTAIN FINANCIAL INSTITUTIONS that have entered into sales agreements with Fidelity Distributors Corporation (FDC) may enter confirmed purchase orders on behalf of customers by phone, with payment to follow no later than the time when the fund is priced on the following business day. If payment is not received by that time, the financial institution could be held liable for resulting fees or losses. WHEN YOU PLACE AN ORDER TO SELL SHARES, your shares will be sold at the next NAV calculated after your request is received and accepted. Please note the following: (bullet) Normally, redemption proceeds will be mailed to you on the next business day, but if making immediate payment could adversely affect a fund, it may take up to seven days to pay you. (bullet) Fidelity Money Line redemptions generally will be credited to your bank account on the second or third business day after your phone call. (bullet) Each fund may hold payment on redemptions until it is reasonably satisfied that investments made by check or Fidelity Money Line have been collected, which can take up to seven business days. (bullet) Redemptions may be suspended or payment dates postponed on days when the NYSE is closed (other than weekends or holidays), when trading on the NYSE is restricted, or as permitted by the SEC. THE REDEMPTION FEE, if applicable, will be deducted from the amount of your redemption. This fee is paid to the fund rather than FMR, and it does not apply to shares that were acquired through reinvestment of distributions. If shares you are redeeming were not all held for the same length of time, those shares you held longest will be redeemed first for purposes of determining whether the fee applies. The long-term redemption fee may be reduced to ensure that the fee is no greater than 0.75% of the net asset value of the long-term shares redeemed. Shares acquired through the reinvestment of dividends and capital gains will be treated as long-term shares for purposes of the redemption fee. IF YOUR ACCOUNT BALANCE FALLS BELOW $1,000, you will be given 30 days' notice to reestablish the minimum balance. If you do not increase your balance, Fidelity reserves the right to close your account and send the proceeds to you. Your shares will be redeemed at the NAV on the day your account is closed. THE SELECT CASH RESERVES ACCOUNT no longer accepts new investments. If you have an investment in this account, you may leave it there, redeem your investment, or exchange your shares for shares of a Select fund or another Fidelity fund. The 1% deferred sales charge will apply to shares in the Select Cash Reserves Account redeemed or exchange to another Fidelity fund, since these shares were available for purchase only when the 1% deferred sales charge was still in effect. If you redeem by check from Select Cash Reserves, and the amount of the check is greater than the value of your account, your check will be returned to you and you may be subject to extra charges. FIDELITY MAY CHARGE A FEE FOR SPECIAL SERVICES, such as providing historical account documents, that are beyond the normal scope of its services. FDC collects the proceeds from the funds' sales charge and may pay a portion of them to securities dealers who have sold the fund's shares, or to others, including banks and other financial institutions (qualified recipients), under special arrangements in connection with FDC's sales activities. The sales charge paid is 2.25% of the offering price. FDC may, at its own expense, provide promotional incentives to q ualified r ecipients who support the sale of shares of the funds without reimbursement from the funds. Qualified recipients are securities dealers who have sold fund shares or others, including banks and other financial institutions, under special arrangements in connection with FDC's sales activities. In some instances, these incentives may be offered only to certain institutions whose representatives provide services in connection with the sale or expected sale of significant amounts of shares. EXCHANGE RESTRICTIONS As a shareholder, you have the privilege of exchanging shares of a fund for shares of other Fidelity funds. However, you should note the following: (bullet) The fund you are exchanging into must be registered for sale in your state. (bullet) You may only exchange between accounts that are registered in the same name, address, and taxpayer identification number. (bullet) Before exchanging into a fund, you should read its prospectus. (bullet) If you exchange into a fund with a sales charge, you pay the percentage-point difference between that fund's sales charge and any sales charge you have previously paid in connection with the shares you are exchanging. For example, if you had already paid a sales charge of 2% on your shares and you exchange them into a fund with a 3% sales charge, you would pay an additional 1% sales charge. (bullet) Exchanges may have tax consequences for you. (bullet) Although there is no limit on the number of exchanges you may make between the Select funds, the funds reserve the right to enact limitations in the future. Because excessive trading can hurt fund performance and shareholders, each fund reserves the right to temporarily or permanently terminate the exchange privilege of any investor who makes more than four exchanges out of the Select funds to other Fidelity funds per calendar year. Accounts under common ownership or control, including accounts with the same taxpayer identification number, will be counted together for purposes of the four exchange limit. (bullet) Each fund reserves the right to reject exchange purchases in excess of 1% of its net assets or $1 million, whichever is less. For purposes of this policy, accounts under common ownership or control will be aggregated. (bullet) Each fund also reserves the right to refuse exchange purchases by any person or group if, in FMR's judgment, the fund would be unable to invest the money effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected. (bullet) Your exchanges may be restricted or refused if the funds receive or anticipate simultaneous orders affecting significant portions of the funds' assets. In particular, a pattern of exchanges that coincide with a "market timing" strategy may be disruptive to the funds. (bullet) Each exchange limit may be modified for accounts in certain institutional retirement plans to conform to plan exchange limits and Department of Labor regulations. See your plan materials for further information. (bullet) For cash management purposes, up to seven days may pass before exchange proceeds are paid from one Select fund to another, or to another Fidelity equity fund. Exchange proceeds are recorded in your shareholder account when the transaction occurs. Therefore, when you exchange from a stock fund to the money market fund, you will earn money market dividends immediately. When you exchange from the money market fund to a stock fund, you will not earn dividends during the seven-day period. This policy could increase the volatility of the money market fund. Although the funds will attempt to give you prior notice whenever they are reasonably able to do so, they may impose these restrictions at any time. The funds reserve the right to terminate or modify the exchange privilege in the future. OTHER FUNDS MAY HAVE DIFFERENT EXCHANGE RESTRICTIONS, and may impose administrative fees of up to $7.50 and redemption fees of up to 1.50% on exchanges. Check each fund's prospectus for details. SALES CHARGE REDUCTIONS AND WAIVERS REDUCTIONS. Each stock fund's sales charge may be reduced if you invest directly with Fidelity or through prototype or prototype-like retirement plans sponsored by FMR or FMR Corp. Purchases made with assistance or intervention from a financial intermediary are not eligible. The amount you invest, plus the value of your account, must fall within the ranges shown below. Call Fidelity to see if your purchase qualifies. Net amount Ranges Sales charge invested $0 - 249,000 3% 3.09% $250,000 - 499,999 2% 2.04% $500,000 - 999,999 1% 1.01% $1,000,000 or more none none The sales charge for the stock funds and the money market fund will also be reduced by the percentage of any sales charge you previously paid on investments in other Fidelity funds (not including Fidelity's Foreign Currency Funds). Similarly, your shares carry credit for any sales charge you would have paid if the reductions in the table above had not been available. These sales charge credits only apply if you continuously owned Fidelity fund shares or a Fidelity brokerage core account, or participated in The CORPORATEplan for Retirement Program, and only to purchases made in one of the following ways: 1. By exchange from another Fidelity fund. 2. With proceeds of a transaction within a Fidelity brokerage core account, including any free credit balance, core money market fund, or margin availability, to the extent such proceeds were derived from redemption proceeds from another Fidelity fund. 3. With redemption proceeds from one of Fidelity's Foreign Currency Portfolios, if the Foreign Currency Portfolio shares were originally purchased with redemption proceeds from a Fidelity fund. 4. Through the Directed Dividends Option (see page ). 5. By participants in The CORPORATEplan for Retirement Program when shares are purchased through plan-qualified loan repayments, and for exchanges into and out of the Managed Income Portfolio. WAIVERS. The fund's sales charge will not apply: 1. If you buy shares as part of an employee benefit plan having more than 200 eligible employees or a minimum of $3 million in plan assets invested in Fidelity mutual funds. Plan sponsors are encouraged to notify Fidelity when they first satisfy either of these requirements. 2. To shares in a Fidelity Rollover IRA account purchased with the proceeds of a distribution from an employee benefit plan, provided that at the time of the distribution, the employer or its affiliate maintained a plan that both qualified for waiver (1) above and had at least some of its assets invested in Fidelity-managed products. 3. If you are a charitable organization (as defined in Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more. 4. If you purchase shares for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined by Section 501(c)(3) of the Internal Revenue Code). 5. If you are an investor participating in the Fidelity Trust Portfolios program. 6. To shares purchased through Portfolio Advisory Services. 7. If you are a current or former trustee or officer of a Fidelity fund or a current or retired officer, director, or full-time employee of FMR Corp. or its direct or indirect subsidiaries (a Fidelity Trustee or employee), the spouse of a Fidelity trustee or employee, a Fidelity trustee or employee acting as custodian for a minor child, or a person acting as trustee of a trust for the sole benefit of the minor child of a Fidelity trustee or employee. 8. If you are a bank trust officer, registered representative, or other employee of a qualified recipient, as defined on page . 9. To contributions and exchanges to a prototype or prototype-like retirement plan sponsored by FMR Corp. or FMR and which is marketed and distributed directly to plan sponsors or participants without any assistance or intervention from any intermediary distribution channel. 10. If you are a registered investment adviser (RIA) purchasing for your discretionary accounts, provided you execute a Fidelity RIA load waiver agreement which specifies certain aggregate minimum and operating provisions. This waiver is available only for shares purchased directly from Fidelity, without a broker, and is unavailable if the RIA is part of an organization principally engaged in the brokerage business. 11. If you are a trust institution or bank trust department purchasing for your non-discretionary, non-retirement fiduciary accounts, provided you execute a Fidelity Trust load waiver agreement which specifies certain aggregate minimum and operating provisions. This waiver is available only for shares purchased either directly from Fidelity or through a bank-affiliated broker, and is available, if the trust department or institution is part of an organization not principally engaged in banking or trust activities. These waivers must be qualified through FDC in advance. More detailed information about waivers (1), (2), (5), and (9) is contained in the Statement of Additional Information. A representative of your plan or organization should call Fidelity for more information. FIDELITY SELECT PORTFOLIOS STATEMENT OF ADDITIONAL INFORMATION APRIL __ , 199 4 This Statement is not a prospectus but should be read in conjunction with the funds' current Prospectus (dated April __ , 199 4 ). Please retain this document for future reference. The Annual Report for the fiscal period ended February 28, 199 4 is incorporated herein by reference. To obtain an additional copy of the Prospectus or the Annual Report, please call Fidelity Distributors Corporation at 1-800-544-8888. TABLE OF CONTENTS PAGE Investment Policies and Limitations Portfolio Transactions Valuation of Portfolio Securities Performance Additional Purchase and Redemption Information Distributions and Taxes FMR Trustees and Officers Management Contracts Contracts With Companies Affiliated With FMR Description of the Trust Financial Statements INVESTMENT ADVISER Fidelity Management & Research Company (FMR) INVESTMENT SUB-ADVISERS Fidelity Management & Research (Far East) Inc. (FMR Far East) Fidelity Management & Research (U.K.) Inc. (FMR U.K.) FMR Texas Inc. ( FTX ) (Money Market Portfolio only) DISTRIBUTOR Fidelity Distributors Corporation (FDC) TRANSFER AGENT Fidelity Service Co. (FSC) SEL-ptB- ___ INVESTMENT POLICIES AND LIMITATIONS The following policies and limitations supplement those set forth in the Prospectus. Unless otherwise noted, whenever an investment policy or limitation states a maximum percentage of a fund's assets that may be invested in any security or other asset, or sets forth a policy regarding quality standards, such standard or percentage limitation will be determined immediately after and as a result of the fund's acquisition of such security or other asset. Accordingly, any subsequent change in values, net assets, or other circumstances will not be considered when determining whether the investment complies with the fund's investment policies and limitations. The funds of the trust are registered as non-diversified investment companies (except Financial Services, Regional Banks, Home Finance, and Money Market Portfolios) Under the Investment Company Act of 1940, as amended, an investment company is diversified if at least 75% of the value of its total assets are represented by cash, cash items, U.S. government securities, and other securities of issuers which represent, with respect to each issuer, no more than 5% of the value of the investment company's total assets and no more than 10% of the outstanding voting securities of such issuer. As a non-diversified investment company, the fund need not satisfy these conditions. However, the equity funds' fundamental investment limitations provide that a fund will not purchase the securities of any issuer (except securities issued or guaranteed by the United States government or its agencies or instrumentalities) if, as a result, more than 10% of the outstanding voting securities of that issuer would be owned by the fund. It is anticipated that each of the equity funds, except the Financial Services, Regional Banks, and Home Finance Portfolios, will operate as "non-diversified," subject to the above conditions and any other conditions applicable to the entire trust. The Financial Services, Regional Banks, and Home Finance Portfolios will not purchase the securities of any issuer (other than obligations issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, with respect to 75% of its total assets, more than 5% of a fund's total assets would be invested in the securities of that issuer, and each will operate as a diversified fund. The Money Market Portfolio also will operate as a diversified fund. Each fund intends to meet the diversification requirements necessary to qualify as a regulated investment company for purposes of the Internal Revenue Code. (See non-fundamental limit (i) on page _ and "Distributions and Taxes" beginning on page _ .) Each fund's fundamental investment policies and limitations cannot be changed without approval by a "majority of the outstanding voting securities" (as defined in the Investment Company Act of 1940) of that fund. However, with respect to the money market fund, except for the fundamental investment limitations set forth below, the investment policies and limitations described in this Statement of Additional Information are not fundamental and may be changed without shareholder approval THE FOLLOWING ARE EACH EQUITY FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. EACH EQUITY FUND MAY NOT: (1) issue senior securities, except as permitted under the Investment Company Act of 1940; (2) borrow money, except that a fund may borrow money for temporary or emergency purposes (not for leveraging or investment) in an amount not exceeding 33 1/3% of its total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days ( not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; (3) underwrite securities issued by others, except to the extent that a fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase or sell the securities of any issuer, if, as a result of such purchase or sale, less than 25% of the assets of the fund would be invested in the securities of issuers principally engaged in the business activities having the specific characteristics denoted by the fund; (5) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (6) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments (but this shall not prevent a fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities). This limitation does not apply to the Precious Metals and Minerals Portfolio (see below) or to the American Gold Portfolio; (7) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements. IN ADDITION, A FUND MAY: (8) notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objectives, policies, and limitations as the fund. THE PRECIOUS METALS AND MINERALS PORTFOLIO MAY NOT: (1) purchase any precious metal if, as a result, more than 50% of its total assets would be invested in precious metals; or (2) purchase or sell physical commodities, provided that the fund may purchase and sell precious metals, and further provided that the fund may sell physical commodities acquired as a result of ownership of securities. The fund may not purchase or sell options, options on futures contracts, or futures contracts on physical commodities other than precious metals. THE FINANCIAL SERVICES, REGIONAL BANKS, AND HOME FINANCE PORTFOLIOS MAY NOT: (1) with respect to 75% of total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government, or any of its agencies or instrumentalities) if, as a result, more than 5% of its total assets would be invested in the securities of that issuer. THE FOLLOWING ARE THE EQUITY FUNDS' NON-FUNDAMENTAL LIMITATIONS WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) To meet federal tax requirements for qualification as a "regulated investment company," each fund limits its investments so that at the close of each quarter of its taxable year: (a) with regard to at least 50% of total assets, no more than 5% of total assets are invested in the securities of a single issuer, and (b) no more than 25% of total assets are invested in the securities of a single issuer. Limitations (a) and (b) do not apply to "Government securities" as defined for federal tax purposes. (ii) Each fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iii) Each fund does not currently intend to purchase securities on margin, except that a fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. ( i v) Each fund does not currently intend to hedge more than 40% of its total assets with short sales against the box under normal conditions. (v) Each fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). Each fund will not purchase any security while borrowings representing more than 5% of its total assets are outstanding. Each fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (vi) Each fund does not currently intend to purchase any security if, as a result, more than 10% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vii) Each fund does not currently intend to invest in securities of real estate investment trusts that are not readily marketable, or to invest in securities of real estate limited partnerships that are not listed on the New York Stock Exchange or the American Stock Exchange or traded on the NASDAQ National Market System. ( vii ) Each fund (except the American Gold Portfolio and the Precious Metals and Minerals Portfolio) will not purchase physical commodities, or purchase or sell futures contracts based on physical commodities. ( i x) The American Gold Portfolio and the Precious Metals and Minerals Portfolio will each limit investment in gold bullion or coins to no more than 25% of its total assets. (x) Each fund does not currently intend to lend assets other than securities to other parties, except by lending money (up to 5% of its net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (xi) Each fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (xii) Each fund does not currently intend to purchase the securities of any issuer (other than securities issued or guaranteed by domestic and foreign governments or political subdivisions thereof) if, as a result, more than 5% of its total assets would be invested in the securities of business enterprises that, including predecessors, have a record of less than three years of continuous operation. (xi ii ) Each fund does not currently intend to purchase warrants, valued at the lower of cost or market, in excess of 5% of the fund's net assets. Included in that amount, but not to exceed 2% of a fund's net assets, may be warrants that are not listed on the New York Stock Exchange or the American Stock Exchange. Warrants acquired by a fund in units or attached to securities are not subject to these restrictions. The Brokerage and Investment Management Portfolio and Financial Services Portfolio are subject to additional restrictions on the purchase of warrants and rights. See page 6. (x i v) Each fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases; provided, however, that if consistent with the designated business activities of a particular fund, a fund may purchase securities of issuers whose principal business activities fall within these areas. (xv) Each fund does not currently intend to purchase the securities of any issuer if those officers and Trustees of the trust and those officers and directors of FMR who individually own more than 1/2 of 1% of the securities of such issuer together own more than 5% of such issuer's securities. (xvi) Each fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objectives, policies, and limitations as the funds. For the equity funds' limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" beginning on page __. THE FOLLOWING ARE THE MONEY MARKET FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE MONEY MARKET FUND MAY NOT: (1) with respect to 75% of the fund's total assets, purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, (a) more than 5% of the fund's total assets would be invested in the securities of that issuer, or (b) the fund would hold more than 10% of the outstanding voting securities of that issuer. (2) issue senior securities, except as permitted under the Investment Company Act of 1940; (3) borrow money, except that the fund may (i) borrow money for temporary or emergency purposes (not for leveraging or investment) and (ii) engage in reverse repurchase agreements for any purpose; provided that (i) and (ii) in combination do not exceed 33 1/3% of the fund's total assets (including the amount borrowed) less liabilities (other than borrowings). Any borrowings that come to exceed this amount will be reduced within three days (not including Sundays and holidays) to the extent necessary to comply with the 33 1/3% limitation; ( 4 ) underwrite securities issued by others, except to the extent that the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; ( 5 ) purchase the securities of any issuer (other than securities issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 25% of the fund's total assets would be invested in the securities of companies whose principal business activities are in the same industry, except that the fund will invest more than 25% of its total assets in the financial services industry; (6) purchase or sell real estate unless acquired as a result of ownership of securities or other instruments (but this shall not prevent the fund from investing in securities or other instruments backed by real estate or securities of companies engaged in the real estate business); (7) purchase or sell physical commodities unless acquired as a result of ownership of securities or other instruments; ( 8 ) lend any security or make any other loan if, as a result, more than 33 1/3% of its total assets would be lent to other parties, but this limitation does not apply to purchases of debt securities or to repurchase agreements; (9) invest in companies for the purpose of exercising control or management. IN ADDITION, THE FUND MAY: (10) notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objectives, policies, and limitations as the fund. THE FOLLOWING ARE THE MONEY MARKET FUND'S NON-FUNDAMENTAL LIMITATIONS WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) The fund does not currently intend to purchase a security (other than a security issued or guaranteed by the U.S. government or any of its agencies or instrumentalities) if, as a result, more than 5% of its total assets would be invested in the securities of a single issuer; provided that the fund may invest up to 25% of its total assets in the first tier securities of a single issuer for up to three business days. (ii) The fund does not currently intend to sell securities short, unless it owns or has the right to obtain securities equivalent in kind and amount to the securities sold short, and provided that transactions in futures contracts and options are not deemed to constitute selling securities short. (iii) The fund does not currently intend to purchase securities on margin, except that the fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin. (iv) The fund may borrow money only (a) from a bank or from a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser or (b) by engaging in reverse repurchase agreements with any party. The fund will not purchase any security whil borrowings (excluding reverse repurchase agreements) representing more than 5% of its total assets are outstanding. The fund will not borrow from other funds advised by FMR or its affiliates if total outstanding borrowings immediately after such borrowing would exceed 15% of the fund's total assets. (v) The fund does not currently intend to purchase any security if, as a result, more than 10% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. (vi) The fund does not currently intend to invest in securities of real estate investment trusts that are not readily marketable, or to invest in securities of real estate limited partnerships that are not listed on the New York Stock Exchange or the American Stock Exchange or traded on the NASDAQ National Market System. (vii) The fund does not currently intend to purchase physical commodities or purchase or sell futures contracts based on physical commodities. (viii) The fund does not currently intend to lend assets other than securities to other parties, except by lending money (up to 10% of the fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (ix) The fund does not currently intend to (a) purchase securities of other investment companies, except in the open market where no commission except the ordinary broker's commission is paid, or (b) purchase or retain securities issued by other open-end investment companies. Limitations (a) and (b) do not apply to securities received as dividends, through offers of exchange, or as a result of a reorganization, consolidation, or merger. (x) The fund does not currently intend to invest in oil, gas, or other mineral exploration or development programs or leases. (xii) The fund does not currently intend to purchase the securities of any issuer if those officers and Trustees of the trust and those officers and directors of FMR who individually own more than 1/2 of 1% of the securities of such issuer together own more than 5% of such issuer's securities. (xii) The fund does not currently intend to purchase or sell futures contracts or call options. This limitation does not apply to options attached to or acquired or traded together with their underlying securities and does not apply to securities that incorporate features similar to options or futures contracts. (xiii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company with substantially the same fundamental investment objective, policies, and limitations as the fund. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO AND FINANCIAL SERVICES PORTFOLIO Rule 12d3-1 under the Investment Company Act of 1940, as amended, allows investment portfolios such as these funds to invest in companies engaged in securities-related activities subject to certain conditions. Purchases of securities of a company that derived 15% or less of gross revenues during its most recent fiscal year from securities-related activities (i.e., broker/dealer, underwriting, or investment advisory activities) are subject only to the same percentage limitations as would apply to any other security the funds may purchase. Each fund may purchase securities of an issuer that derived more than 15% of its gross revenues in its most recent fiscal year from securities-related activities, subject to the following conditions: a. the purchase cannot cause more than 5% of the fund's total assets to be invested in securities of that issuer; b. for an equity security, the purchase cannot result in the fund owning more than 5% of the issuer's outstanding securities in that class; c. for a debt security, the purchase cannot result in the fund owning more than 10% of the outstanding principal amount of the issuer's debt securities. In applying the gross revenue test, an issuer's own securities-related activities must be combined with its ratable share of securities-related revenues from enterprises in which it owns a 20% or greater voting or equity interest. All of the above percentage limitations, as well as the issuer's gross revenue test, are applicable at the time of purchase. With respect to warrants, rights, and convertible securities, a determination of compliance with the above limitations shall be made as though such warrant, right, or conversion privilege had been exercised. Neither fund will be required to divest its holdings of a particular issuer when circumstances subsequent to the purchase cause one of the above conditions to not be met. The funds are not permitted to acquire any security issued by FMR, FDC, or any affiliated company of these companies that is a securities-related business. The purchase of a general partnership interest in a securities-related business is prohibited. MULTIMEDIA PORTFOLIO The Federal Communications Commission (FCC) has certain rules which limit ownership of corporate broadcast licensees in an effort to assure that no one person or entity (including mutual funds) exercises an unacceptable degree of influence or control over broadcast facilities. Current FCC rules prohibit the fund, together with all other funds advised by FMR, from holding in the aggregate 10% of the voting stock of more than 18 AM, 18 FM, or 12 TV broadcast stations. If the officer or director of a broadcast licensee is a representative of the fund, that licensee must also be taken into account in determining whether the limitation on the number of stations has been exceeded. FCC rules also limit investment in multiple stations serving the same area. The attribution rules are not applicable to noncommercial educational FM and TV stations, or to TV stations that are primarily "satellite" operations. In addition, the rules do not restrict the ownership of a broadcast licensee if any other person holds more than 50% of the outstanding voting stock of the licensee. These limitations apply to the aggregate assets of Multimedia Portfolio and of all funds managed by FMR. AMERICAN GOLD PORTFOLIO AND PRECIOUS METALS AND MINERALS PORTFOLIO The American Gold Portfolio and the Precious Metals and Minerals Portfolio each have the authority to invest a portion of their assets in gold. The Precious Metals and Minerals Portfolio can invest in other precious metals, such as platinum, palladium, and silver. No more than 50% of the American Gold Portfolio's total assets may be invested in gold bullion or coins. No more than 50% of the Precious Metals and Minerals Portfolio's total assets may be invested in precious metals, including gold bullion or coins. FMR does not currently intend that either fund will hold gold coins, but the Trustees reserve the right of the Portfolios to do so in the future. Transactions in gold coins will be entered into only with prior approval by the Trustees, prior notice to current shareholders, and provided that disclosure regarding the nature of such investments is set forth in a subsequent Prospectus that is part of the Registration Statement declared effective by the Securities and Exchange Commission. In addition, the ability of the funds to hold gold coins may be restricted by the securities laws and/or regulations of states where the funds' shares are qualified for sale. The funds may also consider investments in securities indexed to the price of gold (both funds) or other precious metals (Precious Metals Portfolio only) as an alternative to direct investments in precious metals. These securities are discussed on page 11. The Precious Metals and Minerals Portfolio's gold-related investments will often contain securities of companies located in the Republic of South Africa, which is a principal producer of gold. Unsettled political and social conditions in South Africa and its neighboring countries, may from time to time pose certain risks to the Precious Metals and Minerals Portfolio's investments in South African issuers. These events could also have an impact on the American Gold Portfolio through their influence on the price of gold and related mining securities worldwide. FUND DESCRIPTIONS THE EQUITY FUNDS INVEST PRIMARILY WITHIN THE INVESTMENT AREAS DESCRIBED BELOW. AIR TRANSPORTATION PORTFOLIO: COMPANIES ENGAGED IN THE REGIONAL, NATIONAL AND INTERNATIONAL MOVEMENT OF PASSENGERS, MAIL, AND FREIGHT VIA AIRCRAFT. Such companies include the major airlines, commuter airlines, air cargo and express delivery operators, air freight forwarders, aviation service firms, and manufacturers of aeronautical equipment. Airline deregulation has substantially diminished the government's role in the air transport industry while promoting an increased level of competition. However, regulations and policies of various domestic and foreign governments can still affect the profitability of individual carriers as well as the entire industry. In addition to regulations and competition, the air transport industry is also very sensitive to fuel price levels and the state of foreign and domestic economies. AMERICAN GOLD PORTFOLIO: COMPANIES ENGAGED IN EXPLORATION, MINING, PROCESSING, OR DEALING IN GOLD, OR, TO A LESSER DEGREE, IN SILVER, PLATINUM, DIAMONDS, OR OTHER PRECIOUS METALS AND MINERALS. FMR also may invest in securities of companies which themselves invest in companies engaged in these activities. Normally at least 80% of the fund's assets will be invested in securities of North, Central and South American companies engaged in gold-related activities, and in gold bullion or coins. The prices of gold and other precious metal mining securities have been subject to substantial fluctuations over short periods of time and may be affected by unpredictable international monetary and political developments such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. Since much of the world's gold reserves are located in South Africa, the social upheaval and related economic difficulties there may, from time to time, influence the price of gold and the share values of precious metals mining companies located elsewhere. Investors should understand the special considerations and risks related to such an investment emphasis, and, accordingly, the potential effect on the fund's value. In addition to its investments in securities, the fund may invest a portion of its assets in gold bullion or coins. The price of gold is affected by broad economic and political conditions, but is less subject to local and company-specific factors than securities of individual companies. As a result, gold may be more or less volatile in price than securities of companies engaged in gold-related businesses. FMR intends to purchase only those forms of gold that are readily marketable and that can be stored in accordance with custody regulations applicable to mutual funds. The fund may incur higher custody and transaction costs for gold than for securities. The fund is authorized to invest up to 50% of its total assets in gold bullion or coins; however, as a non-fundamental policy (which can be changed without shareholder approval), FMR does not currently intend to purchase gold if, as a result, more than 25% of the fund's total assets would be invested in gold, and does not currently intend to purchase coins. As a further limit on gold investments, under current federal tax law, gains from selling gold may not exceed 10% of the fund's annual gross income. This tax requirement could cause the fund to hold or sell bullion or securities when it would not otherwise do so. The fund also may purchase securities whose redemption value is indexed to the price of gold, which are discussed in the Statement of Additional Information. Because the value of these securities is directly linked to the price of gold, they involve risks and pricing characteristics similar to direct investments in gold. FMR currently intends to treat such securities as gold investments for the purposes of the 25% and 50% limitations above and the 80% policy in the first paragraph of this section. AUTOMOTIVE PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, MARKETING OR SALE OF AUTOMOBILES, TRUCKS, SPECIALTY VEHICLES, PARTS, TIRES, AND RELATED SERVICES. These companies include those involved with the manufacture and distribution of vehicles, vehicle parts and tires - either original equipment or for the aftermarket - and those which are involved in the retail sale of vehicles, parts or tires. In addition, the fund may invest in companies that provide automotive-related services to manufacturers, distributors or consumers. The automotive industry is highly cyclical and companies involved in this business may suffer periodic operating losses. While most of the major manufacturers are large, financially strong companies, many others are small and may be non-diversified in both product line and customer base. BIOTECHNOLOGY PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT, SCALE UP AND MANUFACTURE OF VARIOUS BIOTECHNOLOGICAL PRODUCTS, SERVICES AND PROCESSES. These include companies involved with new or experimental technologies such as genetic engineering, hybridoma and recombinant DNA techniques and monoclonal antibodies. The fund may also invest in companies that manufacture and/or distribute biotechnological and biomedical products, including devices and instruments, and in companies that provide or benefit significantly from scientific and technological advances in biotechnology. Some biotechnology companies may provide processes or services instead of, or in addition to, products. The description of the biotechnology sector will be interpreted broadly by FMR, and may include applications and developments in such areas as human health care (e.g., cancer, infectious disease, diagnostics and therapeutics); pharmaceuticals (e.g., new drug development and production); agricultural and veterinary applications (e.g., improved seed varieties, animal growth hormones); chemicals (e.g., enzymes, toxic waste treatment); medical/surgical (e.g., epidermal growth factor, in vivo imaging/therapeutics); and industry (e.g., biochips, fermentation, enhanced mineral recovery). Many of these companies may have losses and may not offer products until the late 1990's. These companies may have persistent losses during a new product's transition from development to production, and revenue patterns may be erratic. In addition, biotechnology companies are affected by patent considerations, intense competition, rapid technological change and obsolescence, and regulatory requirements of the U.S. Food and Drug Administration, the Environmental Protection Agency, state and local governments, and foreign regulatory authorities. Many of these companies are relatively small and their stock is thinly traded. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO: COMPANIES ENGAGED IN STOCK BROKERAGE, COMMODITY BROKERAGE, INVESTMENT BANKING, TAX-ADVANTAGED INVESTMENT OR INVESTMENT SALES, INVESTMENT MANAGEMENT, OR RELATED INVESTMENT ADVISORY SERVICES. Holdings may include diversified companies with operations in the aforementioned areas, in addition to firms principally engaged in brokerage activities or investment management. The fund will not invest in securities of FMR or its affiliated companies. Changes in regulations, the brokerage commission structure, and the competitive environment, combined with the operating leverage inherent in companies in these industries, can produce erratic revenues and earnings over time. The performance of companies in this industry can be closely tied to the stock market and can suffer during market declines. Revenues often depend on overall market activity. Securities and Exchange Commission regulations provide that the fund may not invest more than 5% of its total assets in the securities of any one company that derives more than 15% of its revenues from brokerage or investment management activities. These companies, as well as those deriving more than 15% of profits from brokerage and investment management activities, will be considered to be "principally engaged" in this fund's specific business activity. CHEMICALS PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT, MANUFACTURE OR MARKETING OF PRODUCTS OR SERVICES RELATED TO THE CHEMICAL PROCESS INDUSTRIES. Such products may include synthetic and natural materials, such as basic and intermediate organic and inorganic chemicals, plastics, synthetic fibers, fertilizers, industrial gases, flavorings, fragrances, biological materials, catalysts, carriers, additives, and process aids. The fund may also hold the securities of companies providing design, engineering, construction, and consulting services to companies engaged in chemical processing. Companies in the chemical processing field are subject to regulation by various federal and state authorities, including the Environmental Protection Agency and its state agency counterparts. As regulations are developed and enforced, such companies may be required to alter or cease production of a product, to pay fines or to pay for cleaning up a disposal site, or to agree to restrictions on their operations. In addition, some of the materials and processes used by these companies involve hazardous components. There are risks associated with their production, handling and disposal. These risks are in addition to the more common risks of intense competition and product obsolescence. COMPUTERS PORTFOLIO: COMPANIES ENGAGED IN RESEARCH, DESIGN, DEVELOPMENT, MANUFACTURE OR DISTRIBUTION OF PRODUCTS, PROCESSES OR SERVICES THAT RELATE TO CURRENTLY AVAILABLE OR EXPERIMENTAL HARDWARE TECHNOLOGY WITHIN THE COMPUTER INDUSTRY. The fund may hold securities of companies that provide the following products or services: mainframes, minicomputers, microcomputers, peripherals, data or information processing, office or factory automation, robotics, artificial intelligence, computer aided design, medical technology, engineering and manufacturing, data communications and software. Competitive pressures may have a significant effect on the financial conditions of companies in the computer industry. For example, as product cycles shorten and manufacturing capacity increases, these companies could become increasingly subject to aggressive pricing, which hampers profitability. Fluctuating domestic and international demand also affect profitability. CONSTRUCTION AND HOUSING PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN AND CONSTRUCTION OF RESIDENTIAL, COMMERCIAL, INDUSTRIAL AND PUBLIC WORKS FACILITIES, AS WELL AS COMPANIES ENGAGED IN THE MANUFACTURE, SUPPLY, DISTRIBUTION OR SALE OF PRODUCTS OR SERVICES TO THESE CONSTRUCTION INDUSTRIES. Examples of companies engaged in these activities include companies that provide engineering and contracting services, and companies that produce basic building materials such as cement, aggregates, gypsum, timber, wall coverings, and floor coverings. The fund also may invest in the securities of companies involved in real estate development and construction financing. Such companies could include homebuilders, architectural and design firms, and property managers. Additionally, the fund may invest in the securities of companies involved in the home improvement and maintenance industry, which would include building material retailers and distributors, household service firms, and those that supply such companies. The companies that the fund may invest in are subject to, among other factors, changes in government spending on public works and transportation facilities such as highways and airports, as well as changes in interest rates and levels of economic activity, government-sponsored housing subsidy programs, rate of housing turnover, taxation, demographic patterns, consumer spending, consumer confidence, and new and existing home sales. CONSUMER PRODUCTS PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE AND DISTRIBUTION OF GOODS TO CONSUMERS BOTH DOMESTICALLY AND INTERNATIONALLY. The fund may invest in companies that manufacture or sell durable products such as homes, cars, boats, furniture, major appliances, and personal computers. The fund will also invest in companies that manufacture, wholesale, or retail non-durable goods such as food, beverages, tobacco, health care products, household and personal care products, apparel, and entertainment products (books, magazines, TV, cable, movies, music). Consumer products and services such as lodging, child care, convenience stores, and car rentals may also be represented in the fund. The success of durable goods manufacturers and retailers is closely tied to the performance of the overall economy, interest rates, and consumer confidence. These segments are very competitive; success depends heavily on household disposable income and consumer spending. Consumer product and retailing concepts tend to rise and fall with changes in demographics and consumer tastes. DEFENSE AND AEROSPACE PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, MANUFACTURE OR SALE OF PRODUCTS OR SERVICES RELATED TO THE DEFENSE OR AEROSPACE INDUSTRIES. The fund may hold securities of companies that provide the following products or services: air transport; data processing, or computer-related services; communications systems; research; development and manufacture of military weapons and transportation; general aviation equipment, missiles, space launch vehicles, and spacecraft; units for guidance, propulsion, and control of flight vehicles; equipment components and airborne and ground-based equipment essential to the testing, operation, and maintenance of flight vehicles. Companies involved in the defense and aerospace industries rely to a large extent on U.S. (and other) government demand for their products and services. The financial condition of such companies and investor interest in the stocks of these companies are heavily influenced by federal defense and aerospace spending policies. For example, defense spending is currently under pressure from efforts to control the U.S. budget deficit. DEVELOPING COMMUNICATIONS PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT, MANUFACTURE OR SALE OF EMERGING COMMUNICATIONS SERVICES OR EQUIPMENT. The fund may invest in companies developing or offering services or products based on communications technologies such as cellular, paging, personal communications networks, special mobile radio, facsimile, fiber optic transmission, voice mail, video conferencing, microwave, satellite, local and wide area networking, and other transmission electronics. For purposes of characterizing the fund's investments, communications services or equipment may be deemed to be "emerging" if they derive from new technologies or new applications of existing technologies. The fund will focus on companies whose business is based on these emerging technologies, with less emphasis on traditional telephone utilities and large long distance carriers. The fund will attempt to exploit growth opportunities presented by new technologies and applications in the communications field. Many of these opportunities may be in the development stage and, as such, can pose large risks as well as potential rewards. Such risks might include failure to obtain (or delays in obtaining) adequate financing or necessary regulatory approvals, intense competition, product incompatibility, consumer preferences and rapid obsolescence. Securities of small companies that base their business on emerging technologies may be volatile due to limited product lines, markets, or financial resources. ELECTRONICS PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, OR SALE OF ELECTRONIC COMPONENTS (SEMICONDUCTORS, CONNECTORS, PRINTED CIRCUIT BOARDS AND OTHER COMPONENTS); EQUIPMENT VENDORS TO ELECTRONIC COMPONENT MANUFACTURERS; ELECTRONIC COMPONENT DISTRIBUTORS; AND ELECTRONIC INSTRUMENTS AND ELECTRONIC SYSTEMS VENDORS. In addition, the fund may invest in companies in the fields of defense electronics, medical electronics, consumer electronics, advanced manufacturing technologies (computer-aided design and computer-aided manufacturing [CAD/CAM], computer-aided engineering, and robotics), lasers and electro-optics, and other new electronic technologies. Many of the products offered by companies engaged in the design, production or distribution of electronic products are subject to risks of rapid obsolescence. ENERGY PORTFOLIO: COMPANIES IN THE ENERGY FIELD, INCLUDING THE CONVENTIONAL AREAS OF OIL, GAS, ELECTRICITY AND COAL, AND NEWER SOURCES OF ENERGY SUCH AS NUCLEAR, GEOTHERMAL, OIL SHALE AND SOLAR POWER. The business activities of companies held in the Energy Portfolio may include: production, generation, transmission, marketing, control, or measurement of energy or energy fuels; providing component parts or services to companies engaged in the above activities; energy research or experimentation; and environmental activities related to the solution of energy problems, such as energy conservation and pollution control. Companies participating in new activities resulting from technological advances or research discoveries in the energy field will also be considered for this fund. The securities of companies in the energy field are subject to changes in value and dividend yield which depend, to a large extent, on the price and supply of energy fuels. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of exploration projects, and tax and other regulatory policies of various governments. ENERGY SERVICE PORTFOLIO: COMPANIES IN THE ENERGY SERVICE FIELD, INCLUDING THOSE THAT PROVIDE SERVICES AND EQUIPMENT TO THE CONVENTIONAL AREAS OF OIL, GAS, ELECTRICITY AND COAL, AND NEWER SOURCES OF ENERGY SUCH AS NUCLEAR, GEOTHERMAL, OIL SHALE AND SOLAR POWER. Holdings may include companies involved in providing services and equipment for drilling processes such as offshore and onshore drilling, drill bits, drilling rig equipment, drilling string equipment, drilling fluids, tool joints and wireline logging. Many energy service companies are engaged in production and well maintenance, providing such products and services as packers, perforating equipment, pressure pumping, downhole equipment, valves, pumps, compression equipment, and well completion equipment and service. Certain companies supply energy providers with exploration technology such as seismic data, geological and geophysical services, and interpretation of this data. Holdings may also include companies with a variety of products or services including pipeline construction, oil tool rental, underwater well services, helicopter services, geothermal plant design or construction, electric and nuclear plant design or construction, energy-related capital equipment, mining related equipment or services, and high technology companies serving the above industries. Energy service firms are affected by supply, demand and other normal competitive factors for their specific products or services. They are also affected by other unpredictable factors such as supply and demand for oil and gas, prices of oil and gas, exploration and production spending, governmental regulation, world events and economic conditions. ENVIRONMENTAL SERVICES PORTFOLIO: COMPANIES ENGAGED IN THE RESEARCH, DEVELOPMENT, MANUFACTURE OR DISTRIBUTION OF PRODUCTS, PROCESSES OR SERVICES RELATED TO WASTE MANAGEMENT OR POLLUTION CONTROL. Such products or services may include the transportation, treatment and disposal of both hazardous and solid wastes, including waste-to-energy and recycling; remedial project efforts, including groundwater and underground storage tank decontamination, asbestos cleanup and emergency cleanup response; and the detection, analysis, evaluation, and treatment of both existing and potential environmental problems including, among others, contaminated water, air pollution, and acid rain. The fund may also hold the securities of companies providing design, engineering, construction, and consulting services to companies engaged in waste management or pollution control. The environmental services industry has generally been positively influenced by legislation resulting in stricter government regulations and enforcement policies for both commercial and governmental generators of waste materials, as well as specific expenditures designated for remedial cleanup efforts. Companies in the environmental services field are also affected by regulation by various federal and state authorities, including the federal Environmental Protection Agency and its state agency counterparts. As regulations are developed and enforced, such companies may be required to alter or cease production of a product or service or to agree to restrictions on their operations. In addition, since the materials handled and processes involved include hazardous components, there is significant liability risk. There are also risks of intense competition within the environmental services industry. FINANCIAL SERVICES PORTFOLIO: COMPANIES PROVIDING FINANCIAL SERVICES TO CONSUMERS AND INDUSTRY. Companies in the financial services field include: commercial banks and savings and loan associations, consumer and industrial finance companies, securities brokerage companies, real estate-related companies, leasing companies, and a variety of firms in all segments of the insurance field such as multi-line, property and casualty, and life insurance. The financial services area is currently undergoing relatively rapid change as existing distinctions between financial service segments become less clear. For instance, recent business combinations have included insurance, finance, and securities brokerage under single ownership. Some primarily retail corporations have expanded into securities and insurance fields. Moreover, the federal laws generally separating commercial and investment banking are currently being studied by Congress. Banks, savings and loan associations, and finance companies are subject to extensive governmental regulation which may limit both the amounts and types of loans and other financial commitments they can make and the interest rates and fees they can charge. The profitability of these groups is largely dependent on the availability and cost of capital funds, and can fluctuate significantly when interest rates change. In addition, general economic conditions are important to the operations of these concerns, with exposure to credit losses resulting from possible financial difficulties of borrowers potentially having an adverse effect. Insurance companies are likewise subject to substantial governmental regulation, predominantly at the state level, and may be subject to severe price competition. Securities and Exchange Commission regulations provide that the fund may not invest more than 5% of its assets in the securities of any one company that derives more than 15% of its revenues from brokerage or investment management activities. These companies as well as those deriving more than 15% of profits from brokerage and investment management activities will be considered to be "principally engaged" in this fund's business activity. FOOD AND AGRICULTURE PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, SALE OR DISTRIBUTION OF FOOD AND BEVERAGE PRODUCTS, AGRICULTURAL PRODUCTS, AND PRODUCTS RELATED TO THE DEVELOPMENT OF NEW FOOD TECHNOLOGIES. The goods and services provided or manufactured by companies in the fund may include: packaged food products such as cereals, pet foods and frozen foods; meat and poultry processing; the production of hybrid seeds; the wholesale and retail distribution and warehousing of food and food-related products, including restaurants; and the manufacture and distribution of health food and dietary products, fertilizer and agricultural machinery, wood products, tobacco, and tobacco leaf. In addition to the above, food technology companies engaged in and pioneering the development of new technologies to provide improved hybrid seeds, new and safer food storage, and new enzyme technologies may be purchased by the fund. The success of food and food-related products is closely tied to supply and demand, which may be strongly affected by demographic and product trends, stimulated by food fads, marketing campaigns, and environmental factors. In the U.S., the agricultural products industry is subject to regulation by numerous federal and municipal government agencies. HEALTH CARE PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, OR SALE OF PRODUCTS OR SERVICES USED FOR OR IN CONNECTION WITH HEALTH CARE OR MEDICINE. Companies in the health care field include pharmaceutical companies; firms that design, manufacture, sell, or supply medical, dental, and optical products, hardware or services; companies involved in biotechnology, medical diagnostic, and biochemical research and development, as well as companies involved in the operation of health care facilities. Many of these companies are subject to government regulation of their products and services, a factor which could have a significant and possibly unfavorable effect on the price and availability of such products or services. Furthermore, the types of products or services produced or provided by these companies may become obsolete quickly. HOME FINANCE PORTFOLIO : COMPANIES ENGAGED IN INVESTING IN REAL ESTATE, USUALLY THROUGH MORTGAGES AND OTHER CONSUMER-RELATED LOANS. These companies may also offer discount brokerage services, insurance products, leasing services, and joint venture financing. Investments may include mortgage banking companies, government-sponsored enterprises, real estate investment trusts, consumer finance companies, and similar entities, as well as savings and loan associations, savings banks, building and loan associations, cooperative banks, commercial banks, and similar depository institutions. The fund may hold securities of U.S. depository institutions whose customer deposits are insured by the Savings Association Insurance Fund (SAIF) or the Bank Insurance Fund (BIF). The residential real estate finance industry has changed rapidly over the last decade. Regulatory changes at federally insured institutions, in response to a high failure rate, have mandated higher capital ratios and more prudent underwriting. This reduced capacity has created growth opportunities for uninsured companies and secondary market products to fill unmet demand for home finance. Continued change in the origination, packaging, selling, holding, and insuring of home finance products is expected going forward. The fund will be influenced by potential regulatory changes, interest rate movements, the level of home mortgage demand, and residential delinquency trends. INDUSTRIAL EQUIPMENT PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, DISTRIBUTION OR SERVICE OF PRODUCTS AND EQUIPMENT FOR THE INDUSTRIAL SECTOR, INCLUDING INTEGRATED PRODUCERS OF CAPITAL EQUIPMENT (SUCH AS GENERAL INDUSTRY MACHINERY, FARM EQUIPMENT, AND COMPUTERS), PARTS SUPPLIERS AND SUBCONTRACTORS. The fund may invest in companies that manufacture products or service equipment for the food, clothing or sporting goods industries. The success of equipment manufacturing and distribution companies is closely tied to overall capital spending levels. Capital spending is influenced by the individual company's profitability, and broader issues such as interest rates and foreign competition, which are partly determined by currency exchange rates. Equipment manufacturing concerns may also be affected by economic cycles, technical obsolescence, labor relations difficulties and government regulations pertaining to products, production facilities, or production processes. INDUSTRIAL MATERIALS PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, MINING, PROCESSING, OR DISTRIBUTION OF RAW MATERIALS AND INTERMEDIATE GOODS USED IN THE INDUSTRIAL SECTOR. The products handled by the companies held in the fund may include chemicals, timber, paper, copper, iron ore, nickel, steel, aluminum, textiles, cement, and gypsum. Investments may also be made in the securities of mining, processing, transportation, and distribution companies, including equipment suppliers and railroads. Many companies in this sector are significantly affected by the level and volatility of commodity prices, the exchange value of the dollar, import controls, and worldwide competition. At times, worldwide production of these materials has exceeded demand as a result of over-building or economic downturns. During these times, commodity price declines, and unit volume reductions have led to poor investment returns and losses. Other risks include liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. INSURANCE PORTFOLIO: COMPANIES ENGAGED IN UNDERWRITING, REINSURING, SELLING, DISTRIBUTING, OR PLACING OF PROPERTY AND CASUALTY, LIFE, OR HEALTH INSURANCE. The fund may invest in multi-line companies that provide property and casualty coverage, as well as life and health insurance. The fund may invest in insurance brokers, reciprocals, and claims processors. The fund may also invest in diversified financial companies with subsidiaries (including insurance brokers, reciprocals and claims processors) engaged in underwriting, reinsuring, selling, distributing or placing insurance with independent third parties. Insurance company profits are affected by interest rate levels, general economic conditions, and price and marketing competition. Property and casualty insurance profits may also be affected by weather catastrophes and other disasters. Life and health insurance profits may be affected by mortality and morbidity rates. Individual companies may be exposed to material risks including reserve inadequacy and the inability to collect from reinsurance carriers. Insurance companies are subject to extensive governmental regulation, including the imposition of maximum rate levels, which may not be adequate for some lines of business. Proposed or potential tax law changes may also adversely affect insurance companies' policy sales, tax obligations, and profitability. LEISURE PORTFOLIO: COMPANIES ENGAGED IN THE DESIGN, PRODUCTION, OR DISTRIBUTION OF GOODS OR SERVICES IN THE LEISURE INDUSTRIES. The goods or services provided by companies in the fund may include: television and radio broadcast or manufacture (including cable television); motion pictures and photography; recordings and musical instruments; publishing, including newspapers and magazines; sporting goods and camping and recreational equipment; and sports arenas. Other goods and services may include toys and games (including video and other electronic games), amusement and theme parks, travel-related services, hotels and motels, leisure apparel or footwear, fast food, beverages, restaurants, and gaming casinos. Securities of companies in the leisure industry may be considered speculative. Companies engaged in entertainment, gaming, broadcasting, cable television and cellular communications, for example, have unpredictable earnings, due in part to changing consumer tastes and intense competition. Securities of companies in the leisure industry generally exhibit greater volatility than the overall market. The market has been known to react strongly to technological developments and to the specter of government regulation in the leisure industry. MEDICAL DELIVERY PORTFOLIO: COMPANIES ENGAGED IN THE OWNERSHIP OR MANAGEMENT OF HOSPITALS, NURSING HOMES, HEALTH MAINTENANCE ORGANIZATIONS, AND OTHER COMPANIES SPECIALIZING IN THE DELIVERY OF HEALTH CARE SERVICES. Holdings may include companies that operate acute care, psychiatric, teaching, or specialized treatment hospitals; firms that provide outpatient surgical, outpatient rehabilitation, or other specialized care, home health care, drug and alcohol abuse treatment, and dental care; firms operating comprehensive health maintenance organizations and nursing homes for the elderly and disabled; and firms that provide related laboratory services. Federal and state governments provide a substantial percentage of revenues to health care service providers via Medicare and Medicaid. The future growth of this source of funds is subject to great uncertainty. Additionally, the complexion of the private payment system is changing. For example, insurance companies are beginning to offer long term health care insurance for nursing home patients to supplement or replace government benefits. Also, membership in health maintenance organizations or prepaid health plans is displacing individual payments for each service rendered by a hospital or physician. The demand for health care services will tend to increase as the population ages. However, review of patients' need for hospitalization by Medicare and health maintenance organizations has demonstrated the ability of health care providers to curtail unnecessary hospital stays and reduce costs. MULTIMEDIA PORTFOLIO (FORMERLY BROADCAST AND MEDIA PORTFOLIO): COMPANIES ENGAGED IN THE DEVELOPMENT, PRODUCTION, SALE AND DISTRIBUTION OF GOODS OR SERVICES USED IN THE BROADCAST AND MEDIA INDUSTRIES. Business activities of companies held in the fund may include: ownership, operation, or broadcast of free or pay television, radio or cable stations; publication and sale of newspapers, magazines, books or video products; and distribution of data-based information. The fund may also invest in companies involved in the development, syndication and transmission of the following products: television and movie programming, pay-per-view television, advertising, cellular communications, and emerging technology for the broadcast and media industries. Some of the companies in these industries are undergoing significant change because of federal deregulation of cable and broadcasting. As a result, competitive pressures are intense and the stocks are subject to increased price volatility. Current Federal Communications Commission rules prohibit the fund, together with all other funds advised by FMR, from holding in the aggregate 10% of the voting stock of more than 18 AM, 18 FM or 12 TV stations. This fund may purchase securities identical to those in the Leisure Portfolio, or securities of companies that are engaged in business activities similar to those of certain companies in the Leisure Portfolio. The Broadcast and Media Portfolio's narrower focus may make it a more volatile investment than the Leisure Portfolio. NATURAL GAS PORTFOLIO: COMPANIES ENGAGED IN THE PRODUCTION, TRANSMISSION, AND DISTRIBUTION OF NATURAL GAS, AND INVOLVED IN THE EXPLORATION OF POTENTIAL NATURAL GAS SOURCES, AS WELL AS THOSE COMPANIES THAT PROVIDE SERVICES AND EQUIPMENT TO NATURAL GAS PRODUCERS, REFINERIES, COGENERATION FACILITIES, CONVERTERS, AND DISTRIBUTORS. The business activities of companies held in the Natural Gas Portfolio may include: production, transmission, distribution, marketing, control, or measurement of natural gas; exploration of potential natural gas sources; providing component parts or services to companies engaged in the above activities; natural gas research or experimentation; and environmental activities related to the solution of energy problems, such as energy conservation or pollution control through the use of natural gas. Companies participating in new activities working toward technological advances in the natural gas field may also be considered for the fund. The companies in the natural gas field are subject to, among other factors, changes in price and supply of both conventional and alternative energy sources. Swift price and supply fluctuations may be caused by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other regulatory policies of domestic and foreign governments. PAPER AND FOREST PRODUCTS PORTFOLIO: COMPANIES ENGAGED IN THE MANUFACTURE, RESEARCH, SALE, OR DISTRIBUTION OF PAPER PRODUCTS, PACKAGING PRODUCTS, BUILDING MATERIALS (SUCH AS LUMBER AND PANELING PRODUCTS), AND OTHER PRODUCTS RELATED TO THE PAPER AND FOREST PRODUCTS INDUSTRY. Holdings may include diversified companies with operations in the aforementioned activities. The success of these companies depends on, among other things, the health of the economy, worldwide production capacity and prevailing interest rate levels, which, in turn, may affect product pricing, costs and operating margins. These variables also affect the level of industry and consumer capital spending for paper and forest products. PRECIOUS METALS AND MINERALS PORTFOLIO: COMPANIES ENGAGED IN EXPLORATION, MINING, PROCESSING OR DEALING IN GOLD, SILVER, PLATINUM, DIAMONDS OR OTHER PRECIOUS METALS AND MINERALS. The fund may also invest in securities of companies which themselves invest in companies engaged in these activities. Under normal conditions, the fund will invest at least 80% of its total assets in (i) securities of companies principally engaged in exploration, mining, processing, or dealing in gold, silver, platinum, diamonds, or other precious metals and minerals, and (ii) precious metals. The fund's investments also may include securities whose redemption value is indexed to the price of gold or other precious metals. The value of the fund's investments may be affected by changes in the price of gold and other precious metals. Gold has been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable international monetary and other governmental policies, such as currency devaluations or revaluations; economic and social conditions within a country; trade imbalances; or trade or currency restrictions between countries. Since much of the world's known gold reserves are located in South Africa, political and social conditions there may pose certain risks to the fund's investments. For instance, social upheaval and related economic difficulties in South Africa could cause a decrease in the share values of South African issuers. A number of institutions have adopted policies precluding investments in companies doing business in South Africa. Because companies involved in exploring, mining, processing, or dealing in precious metals or minerals are frequently located outside of the United States, all or a significant portion of this fund may be invested in securities of foreign issuers. Investors should understand the special considerations and risks related to such an investment emphasis. In addition to its investments in securities, the fund may invest a portion of its assets in precious metals, such as gold, silver, platinum, and palladium. The prices of precious metals are affected by broad economic and political conditions, but are less subject to local and company-specific factors than securities of individual companies. As a result, precious metals may be more or less volatile in price than securities of companies engaged in precious metals-related businesses. The fund may purchase precious metals in any form, including bullion and coins, provided that FMR intends to purchase only those forms of precious metals that are readily marketable and that can be stored in accordance with custody regulations applicable to mutual funds. The fund may incur higher custody and transaction costs for precious metals than for securities. Also, precious metals investments do not pay income. The fund is authorized to invest up to 50% of its total assets in precious metals; however, as a non-fundamental policy (which can be changed without shareholder approval), FMR does not currently intend to purchase precious metals if, as a result, more than 25% of the fund's total assets would be invested in precious metals. As a further limit on precious metals investments, under current federal tax law, gains from selling precious metals may not exceed 10% of the fund's annual gross income. This tax requirement could cause the fund to hold or sell precious metals or securities when it would not otherwise do so. Securities whose redemption value is indexed to the price of gold or other precious metals involve risks and pricing characteristics similar to direct precious metals investments. FMR currently intends to treat such securities as investments in precious metals for the purposes of the 25% and 50% limitations above and the 80% policy in the first paragraph of this section. REGIONAL BANKS PORTFOLIO: COMPANIES ENGAGED IN ACCEPTING DEPOSITS AND MAKING COMMERCIAL AND PRINCIPALLY NON-MORTGAGE CONSUMER LOANS. In addition, these companies may offer the following services: merchant banking, consumer and commercial finance, discount brokerage, leasing and insurance. These companies concentrate their operations within a specific part of the country rather than operating predominantly on a national or international scale. The fund may invest in securities of foreign institutions, although the majority of publicly-traded regional banks currently are organized in the United States. The fund may own, among others, securities of U.S. institutions whose customer deposits may or may not be insured by the federal government. Such U.S. institutions may include, but are not limited to, state chartered banks, savings and loan institutions, and banks that are members of the Federal Reserve System. Federal laws generally separating commercial and investment banking, as well as laws governing the capitalization and regulation of the savings and loan industry, are currently being reexamined by Congress. The services offered by banks may expand if legislation broadening bank powers is enacted. While providing diversification, expanded powers could expose banks to well-established competitors, particularly as the historical distinctions between regional banks and other financial institutions erode. Increased competition may also result from the broadening of regional and national interstate banking powers, which has already reduced the number of publicly traded regional banks. In addition, general economic conditions are important to regional banking concerns, with exposure to credit losses resulting from possible financial difficulties of borrowers potentially having an adverse effect. RETAILING PORTFOLIO: COMPANIES ENGAGED IN MERCHANDISING FINISHED GOODS AND SERVICES PRIMARILY TO INDIVIDUAL CONSUMERS. Companies in the fund may include: general merchandise retailers, department stores, food retailers, drug stores, and any specialty retailers selling a single category of merchandise such as apparel, toys, or consumer electronics products. Companies engaged in selling goods and services through alternative means such as direct telephone marketing, mail order, membership warehouse clubs, computer, or video based electronic systems may also be purchased by the fund. The success of retailing companies is closely tied to consumer spending which, in turn, is affected by general economic conditions and consumer confidence levels. The retailing industry is highly competitive; success is often tied to a company's ability to anticipate changing consumer tastes. SOFTWARE AND COMPUTER SERVICES PORTFOLIO: COMPANIES ENGAGED IN RESEARCH, DESIGN, PRODUCTION OR DISTRIBUTION OF PRODUCTS OR PROCESSES THAT RELATE TO SOFTWARE OR INFORMATION-BASED SERVICES. The fund may hold securities of companies that provide systems level software (designed to run the basic functions of a computer) or applications software (designed for one type of work) directed at either horizontal (general use) or vertical (certain industries or groups) markets, time-sharing services, information-based services, computer consulting or facilities management services, communications software, and data communications services. Competitive pressures may have a significant effect on the financial condition of companies in the software and computer services industries. For example, the increasing number of companies and product offerings in the vertical and horizontal markets may lead to aggressive pricing and slower selling cycles. TECHNOLOGY PORTFOLIO: COMPANIES WHICH FMR BELIEVES HAVE, OR WILL DEVELOP, PRODUCTS, PROCESSES OR SERVICES THAT WILL PROVIDE OR WILL BENEFIT SIGNIFICANTLY FROM TECHNOLOGICAL ADVANCES AND IMPROVEMENTS. The description of the technology sector will be interpreted broadly by FMR and may include such products or services as inexpensive computing power, such as personal computers; improved methods of communications, such as satellite transmission, or labor saving machines or instruments, such as computer-aided design equipment. The prime emphasis of the fund will be to identify those companies positioned to benefit from technological advances in areas such as semiconductors, minicomputers and peripheral equipment, scientific instruments, computer software, communications, and future automation trends in both office and factory settings. Competitive pressures may have a significant effect on the financial condition of companies in the technology industry. For example, if technology continues to advance at an accelerated rate, and the number of companies and product offerings continue to expand, these companies could become increasingly sensitive to short product cycles and aggressive pricing. TELECOMMUNICATIONS PORTFOLIO: COMPANIES ENGAGED IN THE DEVELOPMENT, MANUFACTURE, OR SALE OF COMMUNICATIONS SERVICES OR COMMUNICATIONS EQUIPMENT. Companies in the telecommunications field offer a variety of services and products, including local and long distance telephone service; cellular, paging, local and wide area product networks; satellite, microwave and cable television; and equipment used to provide these products and services. Long distance telephone companies may also have interests in new technologies, such as fiber optics and data transmission. Telephone operating companies are subject to both federal and state regulation affecting permitted rates of return and the kinds of services that may be offered. Telephone companies usually pay an above average dividend. However, the fund's investment decisions are based primarily upon capital appreciation potential rather than income considerations. Certain types of companies represented in the fund are engaged in fierce competition for a share of the market for their products. In recent years, these have been companies providing goods or services such as private and local area networks, or engaged in the sale of telephone set equipment. TRANSPORTATION PORTFOLIO: COMPANIES ENGAGED IN PROVIDING TRANSPORTATION SERVICES OR COMPANIES ENGAGED IN THE DESIGN, MANUFACTURE, DISTRIBUTION, OR SALE OF TRANSPORTATION EQUIPMENT. Transportation services include the movement of freight or people by airlines, railroads, ships, trucks, and bus companies. Other service companies include those providing auto, truck, container, rail car, and plane leasing and maintenance. Equipment manufacturers include makers of trucks, autos, planes, containers, rail cars, or any other mode of transportation and their related products. In addition, the fund may invest in companies that sell fuel saving devices to the transportation industry and those that sell insurance and software developed primarily for transportation companies. Risk factors that affect transportation stocks include the state of the economy, fuel prices, labor agreements, and insurance costs. Transportation stocks are cyclical and have occasional sharp price movements. The U.S. trend has been to deregulate these industries, which could have a favorable long-term effect, but future government decisions may adversely affect these companies. UTILITIES PORTFOLIO: COMPANIES IN THE PUBLIC UTILITIES INDUSTRY AND COMPANIES DERIVING A MAJORITY OF THEIR REVENUES FROM THEIR PUBLIC UTILITY OPERATIONS. Public utility investments will include companies engaged in the manufacture, production, generation, transmission and sale of gas and electric energy, and companies engaged in the communications field, including telephone, telegraph, satellite, microwave and the provision of other communication facilities for the public benefit (not including companies involved in public broadcasting). Public utility stocks have traditionally produced above-average dividend income, but the fund's investments are made based on capital appreciation potential. The fund may not own more than 5% of the outstanding voting securities of more than one public utility company as defined by the Public Utility Holding Company Act of 1935. This policy is non-fundamental and may be changed by the Board of Trustees. QUALITY AND MATURITY. (money market fund) Pursuant to procedures adopted by the Board of Trustees, the fund may purchase only high-quality securities that FMR believes present minimal credit risks. To be considered high-quality, a security must be a U.S. government security; rated in accordance with applicable rules in one of the two highest categories for short-term securities by at least two nationally recognized rating services (or by one, if only one rating service has rated the security); or, if unrated, judged to be of equivalent quality by FMR High quality securities are divided into "first tier" and "second tier" securities. First tier securities have received the highest rating (e.g., Standard & Poor's A-1 rating) from at least two rating services (or one, if only one has rated the security). Second tier securities have received ratings within the two highest categories (e.g., Standard & Poor's A-1 or A-2) from at least two rating services ( or one, if only one has rated the security), but do not qualify as first tier securities. If a security has been assigned different ratings by different ratings services, at least two rating services must have assigned the higher rating in order for FMR to determine eligibility on the basis of that higher rating. Based on procedures adopted by the Board of Trustees, FMR may determine that an unrated security is of equivalent quality to a rated first or second tier security. The fund may not invest more than 5% of its total assets in second tier securities. In addition, the fund may not invest more than 1% of its total assets or $1 million (whichever is greater) in the second tier securities of a single issuer. The fund must limit its investments to securities with remaining maturities of 397 days or less and must maintain a dollar-weighted average maturity of 90 days or less. AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with banks that are, or may be considered to be, "affiliated persons" of the fun d under the Investment Company Act of 1940. These transactions may include repurchase agreements with custodian banks; short-term obligations of, and repurchase agreements with, the 50 largest U.S. banks (measured by deposits); municipal securities; U.S. government securities with affiliated financial institutions that are primary dealers in these securities ; short-term currency transactions; and short-term borrowing. In accordance with exemptive orders issued by the Securities and Exchange Commission, the Board of Trustees has established and periodically reviews procedures applicable to transactions involving affiliated financial institutions. FUND'S RIGHTS AS A SHAREHOLDER. The equity funds do not intend to direct or administer the day-to-day operations of any company. Each equity fund, however, may exercise its rights as a shareholder and may communicate its views on important matters of policy to management, the Board of Directors, and shareholders of a company when FMR determines that such matters could have a significant effect on the value of the fund's investment in the company. The activities that each fund may engage in, either individually or in conjunction with others, may include, among others, supporting or opposing proposed changes in a company's corporate structure or business activities; seeking changes in a company's directors or management; seeking changes in a company's direction or policies; seeking the sale or reorganization of the company or a portion of its assets; or supporting or opposing third party takeover efforts. This area of corporate activity is increasingly prone to litigation and it is possible that a fund could be involved in lawsuits related to such activities. FMR will monitor such activities with a view to mitigating, to the extent possible, the risk of litigation against each fund and the risk of actual liability if the fund is involved in litigation. No guarantee can be made, however, that litigation against a fund will not be undertaken or liabilities incurred. ASSET-BACKED SECURITIES may include pools of mortgages, loans, receivables or other assets. Payment of principal and interest may be largely dependent upon the cash flows generated by the assets backing the securities, and, in certain cases, supported by letters of credit, surety bonds, or other credit enhancements. The value of asset-backed securities may also be affected by the creditworthiness of the servicing agent for the pool, the originator of the loans or receivables, or the financial institution(s) providing the credit support. ILLIQUID INVESTMENTS are investments that cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. Under the supervision of the Board of Trustees, FMR determines the liquidity of the funds' investments and, through reports from FMR, the Board monitors investments in illiquid instruments. In determining the liquidity of the funds' investments, FMR may consider various factors, including (1) the frequency of trades and quotations, (2) the number of dealers and prospective purchasers in the marketplace, (3) dealer undertakings to make a market, (4) the nature of the security (including any demand or tender features) and (5) the nature of the marketplace for trades (including the ability to assign or offset a fund's rights and obligations relating to the investment). For the money market fund, investments currently considered by the fund to be illiquid include repurchase agreements not entitling the holder to payment of principal and interest within seven days . Also, FMR may determine some restricted securities and time deposits to be illiquid. Investments currently considered by the equity funds to be illiquid include repurchase agreements not entitling the holder to payment of principal and interest within seven days, over-the-counter options, and non-government stripped fixed-rate mortgage-backed securities. Also, FMR may determine some restricted securities, government-stripped fixed-rate mortgage-backed securities, and swap agreements to be illiquid. However, with respect to over-the-counter options the fund writes, all or a portion of the value of the underlying instrument may be illiquid depending on the assets held to cover the option and the nature and terms of any agreement the fund may have to close out the option before expiration. In the absence of market quotations, illiquid investments are, for the money market fund, valued for purposes of monitoring amortized cost valuation, or, for the equity funds, priced at fair value as determined in good faith by a committee appointed by the Board of Trustees. If through a change in values, net assets, or other circumstances, a fund were in a position where more than 10% of its net assets were invested in illiquid securities, it would seek to take appropriate steps to protect liquidity. RESTRICTED SECURITIES generally can be sold in privately negotiated transactions, pursuant to an exemption from registration under the Securities Act of 1933, or in a registered public offering. Where registration is required, a fund may be obligated to pay all or part of the registration expense and a considerable period may elapse between the time it decides to seek registration and the time the fund may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, the fund might obtain a less favorable price than prevailed when it decided to seek registration of the security. However, in general, the money market fund anticipates holding restricted securities to maturity or selling them in an exempt transaction. LOWER-RATED DEBT SECURITIES. The equity funds may purchase lower-rated debt securities (those rated Ba or lower by Moody's or BB or lower by S tandard & Poor's Corporation ) that have poor protection with respect to the payment of interest and repayment of principal, or may be in default. These securities are often considered to be speculative and involve greater risk of loss or price changes due to changes in the issuer's capacity to pay. The market prices of lower-rated debt securities may fluctuate more than those of higher-rated debt securities and may decline significantly in periods of general economic difficulty which may follow periods of rising interest rates. While the market for high-yield corporate debt securities has been in existence for many years and has weathered previous economic downturns, the 1980s brought a dramatic increase in the use of such securities to fund highly leveraged corporate acquisitions and restructurings. Past experience may not provide an accurate indication of future performance of the high-yield bond market, especially during periods of economic recession. In fact, from 1989 to 1991, the percentage of lower-rated securities that defaulted rose significantly above prior levels, although the default rate decreased in 1992. The market for lower-rated debt securities may be thinner and less active than that for higher-rated debt securities, which can adversely affect the prices at which the former are sold. If market quotations are not available, lower-rated debt securities will be valued in accordance with procedures established by the Board of Trustees, including the use of outside pricing services. Judgment plays a greater role in valuing high-yield corporate debt securities than is the case for securities for which more external sources for quotations and last-sale information are available. Adverse publicity and changing investor perceptions may affect the ability of outside pricing services to value lower-rated debt securities and the funds' ability to sell these securities. Since the risk of default is higher for lower-rated debt securities, FMR's research and credit analysis are an especially important part of managing securities of this type held by a fund. In considering investments for the funds, FMR will attempt to identify those issuers of high-yielding securities whose financial condition is adequate to meet future obligations, has improved, or is expected to improve in the future. FMR's analysis focuses on relative values based on such factors as interest or dividend coverage, asset coverage, earnings prospects, and the experience and managerial strength of the issuer. Each fund may choose, at its expense or in conjunction with others, to pursue litigation or otherwise to exercise its rights as a security holder to seek to protect the interests of security holders if it determines this to be in the best interest of its shareholders. VARIABLE- OR FLOATING-RATE INSTRUMENTS. The money market fund may invest in variable- or floating-rate instruments that ultimately mature in more than one year, if the fund acquires a right to sell the securities that meets certain requirements set forth in Rule 2a-7. Variable-rate instruments (including instruments subject to a demand feature) that mature in 397 days or less may be deemed to have maturities equal to the period remaining until the next readjustment of the interest rate. Other variable rate instruments with demand features may be deemed to have a maturity equal to the longer of the period remaining until the next readjustment of the interest rate or the period remaining until the principal amount can be recovered through demand. A floating rate instrument subject to a demand feature may be deemed to have a maturity equal to the period remaining until the principal amount can be recovered through demand. REPURCHASE AGREEMENTS. In a repurchase agreement, a fund purchases a security and simultaneously commits to resell that security to the seller at an agreed upon price on an agreed upon date within a number of days from the date of purchase. The resale price reflects the purchase price plus an agreed upon incremental amount which is unrelated to the coupon rate or maturity of the purchased security. A repurchase agreement involves the obligation of the seller to pay the agreed upon price, which obligation is in effect secured by the value (at least equal to the amount of the agreed upon resale price and marked to market daily) of the underlying security. A fund may engage in a repurchase agreement with respect to any security in which it is authorized to invest even if, with respect to the money market fund, the underlying security matures in more than 397 days. While it does not presently appear possible to eliminate all risks from these transactions (particularly the possibility of a decline in the market value of the underlying securities, as well as delays and costs to a fund in connection with bankruptcy proceedings) ; it is the funds' current policy to limit repurchase agreement transactions to those parties whose creditworthiness has been reviewed and found satisfactory by FMR. REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund sells a portfolio instrument to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase the instrument at a particular price and time. While a reverse repurchase agreement is outstanding, the fund will maintain appropriate liquid assets in a segregated custodial account to cover its obligation under the agreement. The funds will enter into reverse repurchase agreements only with parties whose creditworthiness has been found satisfactory by FMR. Such transactions may increase fluctuations in the market value of the fund's assets and may be viewed as a form of leverage. DELAYED-DELIVERY TRANSACTIONS. The money market fund may buy and sell securities on a delayed-delivery or when-issued basis. These transactions involve a commitment by the fund to purchase or sell specific securities at a predetermined price or yield, with payment and delivery taking place after the customary settlement period for that type of security (and more than seven days in the future). Typically, no interest accrues to the purchaser until the security is delivered. When purchasing securities on a delayed-delivery basis, the fund assumes the rights and risks of ownership, including the risk of price and yield fluctuations. Because the fund is not required to pay for securities until the delivery date, these risks are in addition to the risks associated with the fund's other investments. If the fund remains substantially fully invested at a time when delayed-delivery purchases are outstanding, the delayed-delivery purchases may result in a form of leverage. When delayed-delivery purchases are outstanding, the fund will set aside appropriate liquid assets in a segregated custodial account to cover its purchase obligations. When the fund has sold a security on a delayed-delivery basis, the fund does not participate in further gains or losses with respect to the security. If the other party to a delayed-delivery transaction fails to deliver or pay for the securities, the fund could miss a favorable price or yield opportunity, or could suffer a loss. The fund may renegotiate delayed-delivery transactions after they are entered into, and may sell underlying securities before they are delivered, which may result in capital gains or losses. INTERFUND BORROWING PROGRAM. Each fund has received permission from the SEC to lend money to and borrow money from other funds advised by FMR or its affiliates. Interfund loans and borrowings normally will extend overnight, but can have a maximum duration of seven days. Loans may be called on one day's notice. A fund will lend through the program only when the returns are higher than those available at the same time from other short-term instruments (such as repurchase agreements), and will borrow through the program only when the costs are equal to or lower than the cost of bank loans. A fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional borrowing costs. SECURITIES LENDING. The equity funds may lend securities to parties such as broker-dealers or institutional investors, including Fidelity Brokerage Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange and a subsidiary of FMR Corp. Securities lending allows the funds to retain ownership of the securities loaned and, at the same time, to earn additional income. Since there may be delays in the recovery of loaned securities, or even a loss of rights in collateral supplied should the borrower fail financially, loans will be made only to parties deemed by FMR to be of good standing. Furthermore, they will only be made if, in FMR's judgment, the consideration to be earned from such loans would justify the risk. FMR understands that it is the current view of the SEC Staff that a fund may engage in loan transactions only under the following conditions: (1) the fund must receive 100% collateral in the form of cash or cash equivalents (e.g., U.S. Treasury bills or notes) from the borrower; (2) the borrower must increase the collateral whenever the market value of the securities loaned (determined on a daily basis) rises above the value of the collateral; (3) after giving notice, the fund must be able to terminate the loan at any time; (4) the fund must receive reasonable interest on the loan or a flat fee from the borrower, as well as amounts equivalent to any dividends, interest, or other distributions on the securities loaned and to any increase in market value; (5) the fund may pay only reasonable custodian fees in connection with the loan; and (6) the Board of Trustees must be able to vote proxies on the securities loaned, either by terminating the loan or by entering into an alternative arrangement with the borrower. Cash received through loan transactions may be invested in any security in which the funds are authorized to invest. Investing this cash subjects that investment, as well as the security loaned, to market forces (i.e., capital appreciation or depreciation). FOREIGN INVESTMENTS. Foreign investments can involve significant risks in addition to the risks inherent in U.S. investments. The value of securities denominated in or indexed to foreign currencies, and of dividends and interest from such securities, can change significantly when foreign currencies strengthen or weaken relative to the U.S. dollar. Foreign securities markets generally have less trading volume and less liquidity than U.S. markets, and prices on some foreign markets can be highly volatile. Many foreign countries lack uniform accounting and disclosure standards comparable to those applicable to U.S. companies, and it may be more difficult to obtain reliable information regarding an issuer's financial condition and operations. In addition, the costs of foreign investing, including withholding taxes, brokerage commissions, and custodial costs, are generally higher than for U.S. investments. Foreign markets may offer less protection to investors than U.S. markets. Foreign issuers, brokers, and securities markets may be subject to less government supervision. Foreign security trading practices, including those involving the release of assets in advance of payment, may involve increased risks in the event of a failed trade or the insolvency of a broker-dealer, and may involve substantial delays. It may also be difficult to enforce legal rights in foreign countries. Investing abroad also involves different political and economic risks. Foreign investments may be affected by actions of foreign governments adverse to the interests of U.S. investors, including the possibility of expropriation or nationalization of assets, confiscatory taxation, restrictions on U.S. investment or on the ability to repatriate assets or convert currency into U.S. dollars, or other government intervention. There may be a greater possibility of default by foreign governments or foreign government-sponsored enterprises. Investments in foreign countries also involve a risk of local political, economic, or social instability, military action or unrest, or adverse diplomatic developments. There is no assurance that FMR will be able to anticipate these potential events or counter their effects. The considerations noted above generally are intensified for investments in developing countries. Developing countries may have relatively unstable governments, economies based on only a few industries, and securities markets that trade a small number of securities. The funds may invest in foreign securities that impose restrictions on transfer within the U.S. or to U.S. persons. Although securities subject to transfer restrictions may be marketable abroad, they may be less liquid than foreign securities of the same class that are not subject to such restrictions. American Depositary Receipts and European Depositary Receipts (ADRs and EDRs) are certificates evidencing ownership of shares of a foreign-based issuer held in trust by a bank or similar financial institution. Designed for use in U.S. and European securities markets, respectively, ADRs and EDRs are alternatives to the purchase of the underlying securities in their national markets and currencies. FOREIGN CURRENCY TRANSACTIONS. The funds may hold foreign currency deposits from time to time, and may convert dollars and foreign currencies in the foreign exchange markets. Currency conversion involves dealer spreads and other costs, although commissions usually are not charged. Currencies may be exchanged on a spot (i.e., cash) basis, or by entering into forward contracts to purchase or sell foreign currencies at a future date and price. Forward contracts generally are traded in an interbank market conducted directly between currency traders (usually large commercial banks) and their customers. The parties to a forward contract may agree to offset or terminate the contract before its maturity, or may hold the contract to maturity and complete the contemplated currency exchange. The funds may use currency forward contracts to manage currency risks and to facilitate transactions in foreign securities. The following discussion summarizes the principal currency management strategies involving forward contracts that could be used by the funds. In connection with purchases and sales of securities denominated in foreign currencies, the funds may enter into currency forward contracts to fix a definite price for the purchase or sale in advance of the trade's settlement date. This technique is sometimes referred to as a "settlement hedge" or "transaction hedge." FMR expects to enter into settlement hedges in the normal course of managing the funds' foreign investments. The funds could also enter into forward contracts to purchase or sell a foreign currency in anticipation of future purchases or sales of securities denominated in foreign currency, even if the specific investments have not yet been selected by FMR. The funds may also use forward contracts to hedge against a decline in the value of existing investments denominated in foreign currency. For example, if a fund owned securities denominated in pounds sterling, it could enter into a forward contract to sell pounds sterling in return for U.S. dollars to hedge against possible declines in the pound's value. Such a hedge (sometimes referred to as a "position hedge") would tend to offset both positive and negative currency fluctuations, but would not offset changes in security values caused by other factors. The fund could also hedge the position by selling another currency expected to perform similarly to the pound sterling - for example, by entering into a forward contract to sell Deutschemarks or European Currency Units in return for U.S. dollars. This type of hedge, sometimes referred to as a "proxy hedge," could offer advantages in terms of cost, yield, or efficiency, but generally would not hedge currency exposure as effectively as a simple hedge into U.S. dollars. Proxy hedges may result in losses if the currency used to hedge does not perform similarly to the currency in which the hedged securities are denominated. Under certain conditions, SEC guidelines require mutual funds to set aside appropriate liquid assets in a segregated custodial account to cover currency forward contracts. As required by SEC guidelines, the funds will segregate assets to cover currency forward contracts, if any, whose purpose is essentially speculative. The funds will not segregate assets to cover forward contracts entered into for hedging purposes, including settlement hedges, position hedges, and proxy hedges. Successful use of forward currency contracts will depend on FMR's skill in analyzing and predicting currency values. Forward contracts may substantially change a fund's investment exposure to changes in currency exchange rates, and could result in losses to the fund if currencies do not perform as FMR anticipates. For example, if a currency's value rose at a time when FMR had hedged a fund by selling that currency in exchange for dollars, the fund would be unable to participate in the currency's appreciation. If FMR hedges currency exposure through proxy hedges, a fund could realize currency losses from the hedge and the security position at the same time if the two currencies do not move in tandem. Similarly, if FMR increases a fund's exposure to a foreign currency, and that currency's value declines, the fund will realize a loss. There is no assurance that FMR's use of forward currency contracts will be advantageous to the funds or that it will hedge at an appropriate time. The policies described in this section are non-fundamental policies of the funds. SWAP AGREEMENTS. Swap agreements can be individually negotiated and structured to include exposure to a variety of different types of investments or market factors. Depending on their structure, swap agreements may increase or decrease a fund's exposure to long- or short-term interest rates (in the U.S. or abroad), foreign currency values, mortgage securities, corporate borrowing rates, or other factors such as security prices or inflation rates. Swap agreements can take many different forms and are known by a variety of names. The equity funds are not limited to any particular form of swap agreement if FMR determines it is consistent with a fund's investment objective and policies. In a typical cap or floor agreement, one party agrees to make payments only under specified circumstances, usually in return for payment of a fee by the other party. For example, the buyer of an interest rate cap obtains the right to receive payments to the extent that a specified interest rate exceeds an agreed upon level, while the seller of an interest rate floor is obligated to make payments to the extent that a specified interest rate falls below an agreed upon level. An interest rate collar combines elements of buying a cap and selling a floor. Swap agreements will tend to shift a fund's investment exposure from one type of investment to another. For example, if a fund agreed to exchange payments in dollars for payments in foreign currency, the swap agreement would tend to decrease the fund's exposure to U.S. interest rates and increase its exposure to foreign currency and interest rates. Caps and floors have an effect similar to buying or writing options. Depending on how they are used, swap agreements may increase or decrease the overall volatility of a fund's investments and its share price. The most significant factor in the performance of swap agreements is the change in the specific interest rate, currency, or other factors that determine the amounts of payments due to and from a fund. If a swap agreement calls for payments by a fund, the fund must be prepared to make such payments when due. In addition, if the counterparty's creditworthiness declined, the value of a swap agreement would be likely to decline, potentially resulting in losses. Each equity fund expects to be able to eliminate its exposure under swap agreements either by assignment or other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. Each equity fund will maintain appropriate liquid assets in a segregated custodial account to cover its current obligations under swap agreements. If a fund enters into a swap agreement on a net basis, it will segregate assets with a daily value at least equal to the excess, if any, of the fund's accrued obligations under the swap agreement over the accrued amount the fund is entitled to receive under the agreement. If a fund enters into a swap agreement on other than a net basis, it will segregate assets with a value equal to the full amount of the fund's accrued obligations under the agreement. INDEXED SECURITIES. Each equity fund may purchase securities whose prices are indexed to the prices of other securities, securities indices, currencies, precious metals or other commodities, or other financial indicators. Indexed securities typically, but not always, are debt securities or deposits whose value at maturity or coupon rate is determined by reference to a specific instrument or statistic. Gold-indexed securities typically are short-term to intermediate-term debt securities whose maturity values or interest rates are determined by reference to the values of one or more specified foreign currencies, and may offer higher yields than U.S. dollar-denominated securities of equivalent issuers. Currency-indexed securities may be positively or negatively indexed; that is, their maturity value may increase when the specified currency value increases, resulting in a security that performs similarly to a foreign-denominated instrument, or their maturity value may decline when foreign currencies increase, resulting in a security whose price characteristics are similar to a put on the underlying currency. Currency-indexed securities may also have prices that depend on the values of a number of different foreign currencies relative to each other. The performance of indexed securities depends to a great extent on the performance of the security, currency, or other instrument to which they are indexed, and may also be influenced by interest rate changes in the U.S. and abroad. At the same time, indexed securities are subject to the credit risks associated with the issuer of the security, and their values may decline substantially if the issuer's creditworthiness deteriorates. Recent issuers of indexed securities have included banks, corporations, and certain U.S. government agencies. Indexed securities may be more volatile than the underlying instruments. The American Gold Portfolio and the Precious Metals and Minerals Portfolio may consider purchasing securities indexed to the price of gold as an alternative to direct investments in gold. The funds will only buy gold-indexed securities when they are satisfied with the creditworthiness of the issuers liable for payment. The securities generally will earn a nominal rate of interest while held by a fund, and may have maturities of one year or more. In addition, the securities may be subject to being put by a fund to the issuer, with payment to be received on no more than seven days' notice. The put feature would ensure the liquidity of the notes in the absence of an active secondary market. The Precious Metals and Minerals fund may consider investments in securities indexed to the price of platinum, silver, or other precious metals. SHORT SALES "AGAINST THE BOX". The money market fund may sell securities short when it owns or has the right to obtain securities equivalent in kind or amount to the securities sold short. Short sales could be used to protect the net asset value per share of the fund in anticipation of increase interest rates, without sacrificing the current yield of the securities sold short. If the money market fund or an equity fund enters into a short sale against the box, it will be required to set aside securities equivalent in kind and amount to the securities sold short (or securities convertible or exchangeable into such securities) and will be required to hold such securities while the short sale is outstanding. The fund will incur transaction costs, including interest expense, in connection with opening, maintaining, and closing short sales against the box. LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each equity fund intends to file a notice of eligibility for exclusion from the definition of the term "commodity pool operator" with the Commodity Futures Trading Commission (CFTC) and the National Futures Association, which regulate trading in the futures markets, before engaging in any purchases or sales of futures contracts or options on futures contracts. The equity funds intend to comply with Section 4.5 of the regulations under the Commodities Exchange Act, which limits the extent to which the funds can commit assets to initial margin deposits and option premiums. In addition, each fund will not: (a) sell futures contracts, purchase put options, or write call options if, as a result, more than 25% of the fund's total assets would be hedged with futures and options under normal conditions; (b) purchase futures contracts or write put options if, as a result, the fund's total obligations upon settlement or exercise of purchased futures contracts and written put options would exceed 25% of its total assets; or (c) purchase call options if, as a result, the current value of option premiums for call options purchased by the fund would exceed 5% of the fund's total assets. These limitations do not apply to options attached to or acquired or traded together with their underlying securities, and do not apply to securities that incorporate features similar to options. The above limitations on the funds' investments in futures contracts and options, and the funds' policies regarding futures contracts and options discussed elsewhere in this Statement of Additional Information, are not fundamental policies and may be changed as regulatory agencies permit. FUTURES CONTRACTS. When a fund purchases a futures contract, it agrees to purchase a specified underlying instrument at a specified future date. When a fund sells a futures contract, it agrees to sell the underlying instrument at a specified future date. The price at which the purchase and sale will take place is fixed when a fund enters into the contract. Some currently available futures contracts are based on specific securities, such as U.S. Treasury bonds or notes, and some are based on indices of securities prices, such as the Standard & Poor's 500 Composite Stock Price Index (S&P 500). Futures can be held until their delivery dates, or can be closed out before then if a liquid secondary market is available. The value of a futures contract tends to increase and decrease in tandem with the value of its underlying instrument. Therefore, purchasing futures contracts will tend to increase a fund's exposure to positive and negative price fluctuations in the underlying instrument, much as if it had purchased the underlying instrument directly. When a fund sells a futures contract, by contrast, the value of its futures position will tend to move in a direction contrary to the market. Selling futures contracts, therefore, will tend to offset both positive and negative market price changes, much as if the underlying instrument had been sold. FUTURES MARGIN PAYMENTS. The purchaser or seller of a futures contract is not required to deliver or pay for the underlying instrument unless the contract is held until the delivery date. However, both the purchaser and seller are required to deposit "initial margin" with a futures broker, known as a futures commission merchant (FCM), when the contract is entered into. Initial margin deposits are typically equal to a percentage of the contract's value. If the value of either party's position declines, that party will be required to make additional "variation margin" payments to settle the change in value on a daily basis. The party that has a gain may be entitled to receive all or a portion of this amount. Initial and variation margin payments do not constitute purchasing securities on margin for purposes of the funds' investment limitations. In the event of the bankruptcy of an FCM that holds margin on behalf of a fund, the fund may be entitled to return of margin owed to it only in proportion to the amount received by the FCM's other customers, potentially resulting in losses to the fund. PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, a fund obtains the right (but not the obligation) to sell the option's underlying instrument at a fixed strike price. In return for this right, the fund pays the current market price for the option (known as the option premium). Options have various types of underlying instruments, including specific securities, indices of securities prices, and futures contracts. A fund may terminate its position in a put option it has purchased by allowing it to expire or by exercising the option. If the option is allowed to expire, the fund will lose the entire premium it paid. If the fund exercises the option, it completes the sale of the underlying instrument at the strike price. The fund may also terminate a put option position by closing it out in the secondary market at its current price, if a liquid secondary market exists. The buyer of a typical put option can expect to realize a gain if security prices fall substantially. However, if the underlying instrument's price does not fall enough to offset the cost of purchasing the option, a put buyer can expect to suffer a loss (limited to the amount of the premium paid, plus related transaction costs). The features of call options are essentially the same as those of put options, except that the purchaser of a call option obtains the right to purchase, rather than sell, the underlying instrument at the option's strike price. A call buyer typically attempts to participate in potential price increases of the underlying instrument with risk limited to the cost of the option if security prices fall. At the same time, the buyer can expect to suffer a loss if security prices do not rise sufficiently to offset the cost of the option. WRITING PUT AND CALL OPTIONS. When a fund writes a put option, it takes the opposite side of the transaction from the option's purchaser. In return for receipt of the premium, the fund assumes the obligation to pay the strike price for the option's underlying instrument if the other party to the option chooses to exercise it. When writing an option on a futures contract the fund will be required to make margin payments to an FCM as described above for futures contracts. A fund may seek to terminate its position in a put option it writes before exercise by closing out the option in the secondary market at its current price. If the secondary market is not liquid for a put option the fund has written, however, the fund must continue to be prepared to pay the strike price while the option is outstanding, regardless of price changes, and must continue to set aside assets to cover its position. If security prices rise, a put writer would generally expect to profit, although its gain would be limited to the amount of the premium it received. If security prices remain the same over time, it is likely that the writer will also profit, because it should be able to close out the option at a lower price. If security prices fall, the put writer would expect to suffer a loss. This loss should be less than the loss from purchasing the underlying instrument directly, however, because the premium received for writing the option should mitigate the effects of the decline. Writing a call option obligates a fund to sell or deliver the option's underlying instrument, in return for the strike price, upon exercise of the option. The characteristics of writing call options are similar to those of writing put options, except that writing calls generally is a profitable strategy if prices remain the same or fall. Through receipt of the option premium, a call writer mitigates the effects of a price decline. At the same time, because a call writer must be prepared to deliver the underlying instrument in return for the strike price, even if its current value is greater, a call writer gives up some ability to participate in security price increases. COMBINED POSITIONS. A fund may purchase and write options in combination with each other, or in combination with futures or forward contracts, to adjust the risk and return characteristics of the overall position. For example, a fund may purchase a put option and write a call option on the same underlying instrument, in order to construct a combined position whose risk and return characteristics are similar to selling a futures contract. Another possible combined position would involve writing a call option at one strike price and buying a call option at a lower price, in order to reduce the risk of the written call option in the event of a substantial price increase. Because combined options positions involve multiple trades, they result in higher transaction costs and may be more difficult to open and close out. CORRELATION OF PRICE CHANGES. Because there are a limited number of types of exchange-traded options and futures contracts, it is likely that the standardized contracts available will not match a fund's current or anticipated investments exactly. Each fund may invest in options and futures contracts based on securities with different issuers, maturities, or other characteristics from the securities in which it typically invests which involves a risk that the options or futures position will not track the performance of the fund's other investments. Options and futures prices can also diverge from the prices of their underlying instruments, even if the underlying instruments match a fund's investments well. Options and futures prices are affected by such factors as current and anticipated short-term interest rates, changes in volatility of the underlying instrument, and the time remaining until expiration of the contract, which may not affect security prices the same way. Imperfect correlation may also result from differing levels of demand in the options and futures markets and the securities markets, from structural differences in how options and futures and securities are traded, or from imposition of daily price fluctuation limits or trading halts. A fund may purchase or sell options and futures contracts with a greater or lesser value than the securities it wishes to hedge or intends to purchase in order to attempt to compensate for differences in volatility between the contract and the securities, although this may not be successful in all cases. If price changes in a fund's options or futures positions are poorly correlated with its other investments, the positions may fail to produce anticipated gains or result in losses that are not offset by gains in other investments. LIQUIDITY OF OPTIONS AND FUTURES CONTRACTS. There is no assurance a liquid secondary market will exist for any particular options or futures contract at any particular time. Options may have relatively low trading volume and liquidity if their strike prices are not close to the underlying instrument's current price. In addition, exchanges may establish daily price fluctuation limits for options and futures contracts, and may halt trading if a contract's price moves upward or downward more than the limit in a given day. On volatile trading days when the price fluctuation limit is reached or a trading halt is imposed, it may be impossible for a fund to enter into new positions or close out existing positions. If the secondary market for a contract is not liquid because of price fluctuation limits or otherwise, it could prevent prompt liquidation of unfavorable positions, and potentially could require a fund to continue to hold a position until delivery or expiration regardless of changes in its value. As a result, the fund's access to other assets held to cover its options or futures positions could also be impaired. OTC OPTIONS. Unlike exchange-traded options, which are standardized with respect to the underlying instrument, expiration date, contract size, and strike price, the terms of over-the-counter options (options not traded on exchanges) generally are established through negotiation with the other party to the option contract. While this type of arrangement allows a fund greater flexibility to tailor an option to its needs, OTC options generally involve greater credit risk than exchange-traded options, which are guaranteed by the clearing organization of the exchanges where they are traded. OPTIONS AND FUTURES RELATING TO FOREIGN CURRENCIES. Currency futures contracts are similar to forward currency exchange contracts, except that they are traded on exchanges (and have margin requirements) and are standardized as to contract size and delivery date. Most currency futures contracts call for payment or delivery in U.S. dollars. The underlying instrument of a currency option may be a foreign currency, which generally is purchased or delivered in exchange for U.S. dollars, or may be a futures contract. The purchaser of a currency call obtains the right to purchase the underlying currency, and the purchaser of a currency put obtains the right to sell the underlying currency. The uses and risks of currency options and futures are similar to options and futures relating to securities or indices, as discussed above. The funds may purchase and sell currency futures and may purchase and write currency options to increase or decrease their exposure to different foreign currencies. The funds may also purchase and write currency options in conjunction with each other or with currency futures or forward contracts. Currency futures and options values can be expected to correlate with exchange rates, but may not reflect other factors that affect the value of the funds' investments. A currency hedge, for example, should protect a Yen-denominated security from a decline in the Yen, but will not protect a fund against a price decline resulting from deterioration in the issuer's creditworthiness. Because the value of a fund's foreign-denominated investments changes in response to many factors other than exchange rates, it may not be possible to match the amount of currency options and futures to the value of the fund's investments exactly over time. ASSET COVERAGE FOR FUTURES AND OPTIONS POSITIONS. The funds will comply with guidelines established by the Securities and Exchange Commission with respect to coverage of options and futures strategies by mutual funds, and if the guidelines so require will set aside appropriate liquid assets in a segregated custodial account in the amount prescribed. Securities held in a segregated account cannot be sold while the futures or option strategy is outstanding, unless they are replaced with other suitable assets. As a result, there is a possibility that segregation of a large percentage of a fund's assets could impede portfolio management or the fund's ability to meet redemption requests or other current obligations. PORTFOLIO TRANSACTIONS All orders for the purchase or sale of portfolio securities are placed on behalf of the funds by FMR (either directly or, for the money market fund, through an affiliated sub-adviser) pursuant to authority contained in each fund's management contract. FMR is also responsible for the placement of transaction orders for other investment companies and accounts for which it or its affiliates act as investment adviser. Securities purchased and sold by the money market fund will generally be traded on a net basis (i.e., without commission). In selecting broker-dealers, subject to the applicable limitations of the federal securities laws, FMR considers various relevant factors, including, but not limited to, the size and type of the transaction; the nature and character of the markets for the security to be purchased or sold; the execution efficiency, settlement capability, and financial condition of the broker-dealer firm; the broker-dealer's execution services rendered on a continuing basis; the reasonableness of any commission s; and, for the equity funds, arrangements for payment of fund expenses . Commissions for foreign investments traded on foreign exchanges will generally be higher than for U.S. investments and may not be subject to negotiation. Each fund may execute portfolio transactions with broker-dealers who provide research and execution services to the funds and other accounts over which FMR or its affiliates exercise investment discretion. Such services may include advice concerning the value of securities; the advisability of investing in, purchasing, or selling securities; the availability of securities or the purchasers or sellers of securities; furnishing analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and performance of accounts; and effecting securities transactions and performing functions incidental thereto (such as clearance and settlement). The selection of such broker-dealers is generally made by FMR (to the extent possible consistent with execution considerations) in accordance with a ranking of broker-dealers determined periodically by FMR's investment staff based upon the quality of research and execution services provided. The receipt of research from broker-dealers that execute transactions on behalf of the funds may be useful to FMR in rendering investment management services to a fund or its other clients, and conversely, such research provided by broker-dealers who have executed transaction orders on behalf of other FMR clients may be useful to FMR in carrying out its obligations to the funds. The receipt of such research has not reduced FMR's normal independent research activities; however, it enables FMR to avoid the additional expenses that could be incurred if FMR tried to develop comparable information through its own efforts. Subject to applicable limitations of the federal securities laws, broker-dealers may receive commissions for agency transactions that are in excess of the amount of commissions charged by other broker-dealers in recognition of their research and execution services. In order to cause a fund to pay such higher commissions, FMR must determine in good faith that such commissions are reasonable in relation to the value of the brokerage and research services provided by such executing broker-dealers, viewed in terms of a particular transaction or FMR's overall responsibilities to the fund and its other clients. In reaching this determination, FMR will not attempt to place a specific dollar value on the brokerage and research services provided, or to determine what portion of the compensation should be related to those services. FMR is authorized to use research services provided by and to place portfolio transactions with brokerage firms that have provided assistance in the distribution of shares of the funds or shares of other Fidelity funds to the extent permitted by law. FMR may use research services provided by and place agency transactions with Fidelity Brokerage Services, Inc. (FBSI) and Fidelity Brokerage Services, Ltd. (FBSL), subsidiaries of FMR Corp., if the commissions are fair, reasonable, and comparable to commissions charged by non-affiliated, qualified brokerage firms for similar services. Prior to September 4, 1992, FBSL operated under the name Fidelity Portfolio Services, Ltd. (FPSL) as a wholly owned subsidiary of Fidelity International Limited (FIL). Edward C. Johnson 3d is Chairman of FIL. Mr. Johnson 3d, Johnson family members, and various trusts for the benefit of the Johnson family , own directly or indirectly, more than 25% of the voting common stock of FIL. FMR may allocate transactions to broker-dealers who have entered into arrangements with FMR under which the broker-dealer allocates a portion of the commissions paid by the fund toward payment of the fund's expenses such as transfer agent fees of FSC or custodian fees. The transaction quality must, however, be comparable to those of other qualified broker-dealers. Section 11(a) of the Securities Exchange Act of 1934 prohibits members of national securities exchanges from executing exchange transactions for accounts which they or their affiliates manage, except in accordance with regulations of the Securities and Exchange Commission. Pursuant to such regulations, the Board of Trustees has approved a written agreement that permits FBSI to effect portfolio transactions on national securities exchanges and to retain compensation in connection with such transactions. The Trustees periodically review FMR's performance of its responsibilities in connection with the placement of portfolio transactions on behalf of the funds and review the commissions paid by the funds over representative periods of time to determine if they are reasonable in relation to the benefits to the funds. The equity funds' annualized portfolio turnover rates for the fiscal year ended February 28, 1994, the fiscal period May 1, 1992 to February 28, 1993, and the fiscal year ended April 30, 1992 are listed in the table on page __ . The equity funds' annual portfolio turnover rates may be substantially greater than those of other equity investment companies. The significantly higher or lower portfolio turnover rates from year to year are primarily the result of fluctuations in asset levels and FMR's assessment of changing economic conditions throughout each year for various industries. High turnover may also be the result of short-term shareholder trading activity which increases brokerage and operating costs. This shareholder activity may also result in required purchases or sales of portfolio securities at disadvantageous times. The brokerage commissions incurred by each equity fund for the fiscal year ended February 28, 1994, the 1993 fiscal period, and the fiscal year ended April 30, 19 92 are also listed in the table on page __ . The significantly higher or lower brokerage commissions paid by many of the funds from year to year are primarily a result of changing asset levels throughout the year. Durin g fiscal 1994 , the funds paid commissions to brokerage firms that provided research services, although the provision of such services was not necessarily a factor in the placement of all of this business with these firms. The percentage of brokerage commissions paid by each fund during fiscal 1994 to brokerage firms that provided research services is also listed in the table below. The Natural Gas Portfolio had not yet commenced operations and therefore had not incurred any brokerage commissions as of February 28, 1993. % OF COMMISSIONS PAID TO BROKERAGE FIRMS PROVIDING PORTFOLIO TURNOVER RATE BROKERAGE COMMISSIONS RESEARCH SERVICES
FISCAL FISCAL FISCAL FISCAL FISCAL FISCAL 1994 1993* 1994 1993 1992 199 4
ENERGY 72% $ 225,088 $ 240,443 FINANCIAL SERVICES 100 171,411 183,687 HEALTH CARE 112 1,113,199 1,778,708 PRECIOUS METALS AND MINERALS 36 111,030 278,343 TECHNOLOGY 259 192,404 437,708 UTILITIES 34 144,012 242,874 DEFENSE AND AEROSPACE 87 501 2,632 LEISURE 109 41,547 49,783 BROKERAGE AND INVESTMENT MANAGEMENT 111 39,681 102,968 CHEMICALS 214 73,037 51,321 COMPUTERS 254 124,610 211,386 ELECTRONICS 293 53,635 122,511 FOOD AND AGRICULTURE 515 87,850 124,197 SOFTWARE AND COMPUTER SERVICES 402 270,455 21,892 TELECOMMUNICATIONS 115 90,726 28,026 AIR TRANSPORTATION 96 44,823 67,843 AMERICAN GOLD 30 222,189 445,129 BIOTECHNOLOGY 79 194,398 1,077,771 ENERGY SERVICE 236 252,703 212,947 INSURANCE 81 16,431 2,875 RETAILING 171 131,980 168,548 HOME FINANCE 61 113,247 55,268 AUTOMOTIVE 140 237,775 180,328 MULTIMEDIA 70 4,868 11,569 MEDICAL DELIVERY 155 308,801 362,067 PAPER AND FOREST PRODUCTS 222 49,472 214,407 REGIONAL BANKS 63 159,549 134,811 INDUSTRIAL EQUIPMENT 407 8,169 20,214 CONSTRUCTION AND HOUSING 60 30,468 58,069 INDUSTRIAL MATERIALS 273 77,224 57,399 TRANSPORTATION 116 5,219 28,039 ENVIRONMENTAL SERVICES 176 271,040 361,267 CONSUMER PRODUCTS 215 9,272 14,091 DEVELOPING COMMUNICATIONS 77 35,996 17,065 NATURAL GAS
* Annualized The funds pay both commissions and spreads in connection with the placement of portfolio transactions; FBSI is paid on a commission basis. During fiscal 1994, the fiscal period ended February 28, 1993 , and the fiscal year ended April 30, 1992, the equity funds paid brokerage commissions to FBSI, the amounts of which are listed in the table below entitled "Brokerage Commissions paid to FBSI." This table also lists the percentage of each fund's aggregate brokerage commissions paid to FBSI during the fiscal 1994 as well as the percentage of each fund's aggregate dollar amount of transactions executed through FBSI. The difference in the percentage of the brokerage commissions paid to and the percentage of the dollar amount of transactions effected through FBSI is a result of the low commission rates charged by FBSI. During fiscal 1994, the 1993 fiscal period and fiscal 1992, some equity funds also paid brokerage commissions to FBSL, the amounts of which are listed in the table entitled "Brokerage Commissions Paid to FBSL"on page __ . The table also lists the percentage of each fund's aggregate brokerage commissions paid to FBSL during fiscal 1994 , and the percentage of each fund's aggregate dollar amount of transactions executed through FBSL during the same period. The difference in the percentage of brokerage commissions paid to and the percentage of the dollar amount of transactions executed through FBSL is a result of the lower commission rates charged by FBSL. From time to time the Trustees will review whether the recapture for the benefit of the funds of some portion of the brokerage commissions or similar fees paid by the funds on portfolio transactions is legally permissible and advisable. The funds seek to recapture soliciting broker-dealer fees on the tender of portfolio securities, but at present no other recapture arrangements are in effect. The Trustees intend to continue to review whether recapture opportunities are available and are legally permissible and, if so, to determine, in the exercise of their business judgment, whether it would be advisable for the funds to seek such recapture. Although the Trustees and officers of the funds are substantially the same as those of other funds managed by FMR, investment decisions for each fund are made independently from those of other funds managed by FMR or accounts managed by FMR affiliates. Likewise, the investment decisions for each Select fund are made independently of those for the other Select funds. It sometimes happens that the same security is held in the portfolio of more than one of these funds or other Fidelity funds or accounts. Simultaneous transactions are inevitable when several funds are managed by the same investment adviser, particularly when the same security is suitable for the investment objective of more than one fund. When two or more funds are simultaneously engaged in the purchase or sale of the same security, the prices and amounts are allocated in accordance with a formula considered by the officers of the funds involved to be equitable to each fund. In some cases this system could have a detrimental effect on the price or value of the security as far as a fund is concerned. In other cases, however, the ability of a fund to participate in volume transactions will produce better executions and prices for the fund. It is the current opinion of the Trustees that the desirability of retaining FMR as investment adviser to the funds outweighs any disadvantages that may be said to exist from exposure to simultaneous transactions. BROKERAGE COMMISSIONS PAID TO FBSI % OF AGGREGATE % OF BROKERAGE DOLLAR AMOUNT OF COMMISSIONS PAID COMMISSIONS PAID TRANSACTIONS EXECUTED TO FBSI TO FBSI THROUGH FBSI
FISCAL FISCAL FISCAL FISCAL FISCAL 1994 1993 1992 199 4 199 4
ENERGY $ 42,457 $ 43,456 FINANCIAL SERVICES 104,207 72,930 HEALTH CARE 292,180 478,294 PRECIOUS METALS AND MINERALS 10,336 29,957 TECHNOLOGY 121,695 167,987 UTILITIES 59,948 58,722 DEFENSE AND AEROSPACE 1,191 1,543 LEISURE 20,247 8,906 BROKERAGE AND INVESTMENT MANAGEMENT 15,956 27,337 CHEMICALS 54,712 16,436 COMPUTERS 92,069 70,291 ELECTRONICS 81,597 53,076 FOOD AND AGRICULTURE 49,642 39,318 SOFTWARE AND COMPUTER SERVICES 126,315 53,042 TELECOMMUNICATIONS 43,393 4,653 AIR TRANSPORTATION 8,582 4,223 AMERICAN GOLD 18,310 29,559 BIOTECHNOLOGY 111,543 254,319 ENERGY SERVICE 209,611 90,301 INSURANCE 7,778 1,131 RETAILING 84,290 45,165 HOME FINANCE 100,744 23,189 AUTOMOTIVE 144,584 53,103 MULTIMEDIA 3,678 3,219 MEDICAL DELIVERY 105,300 134,267 PAPER AND FOREST PRODUCTS 41,247 54,522 REGIONAL BANKS 85,117 52,554 INDUSTRIAL EQUIPMENT 10,864 10,730 CONSTRUCTION AND HOUSING 21,890 21,116 INDUSTRIAL MATERIALS 39,122 18,840 TRANSPORTATION 5,310 8,818 ENVIRONMENTAL SERVICES 89,654 48,631 CONSUMER PRODUCTS 14,397 7,281 DEVELOPING COMMUNICATIONS 8,888 2,936 NATURAL GAS
BROKERAGE COMMISSIONS PAID TO FBSL
% OF FUND'S % OF FUND'S AGGREGATE DOLLAR AMOUNT COMMISSIONS PAID AGGREGATE OF TRANSACTIONS COMMISSIONS TO FBSL PAID TO FBSL THROUGH FBSL
FISCAL FISCAL FISCAL FISCAL FISCAL 1994 1993 1992 1994 1994 HEALTH CARE $ 575 $ 4,353 .04% .04% PRECIOUS METALS AND MINERALS -- -- -- -- TECHNOLOGY -- -- -- -- LEISURE -- 1,658 -- -- RETAILING -- -- -- -- MULTIMEDIA -- -- -- -- BIOTECHNOLOGY -- 2,861 -- -- SOFTWARE AND COMPUTER SERVICES 931 1,281 .21 .26 ENVIRONMENTAL SERVICES -- -- -- -- UTILITIES -- 3,483 -- -- VALUATION OF PORTFOLIO SECURITIES Each equity fund's net asset value is determined hourly during business hours observed by the New York Stock Exchange. Currently, the Exchange is open from 9:30 a.m. to 4:00 p.m. Eastern time, Monday through Friday. The Board has approved the following "valuation times" for the determination of each fund's net asset value: 10:00 a.m., 11:00 a.m., 12:00 noon, 1:00 p.m., 2:00 p.m., 3:00 p.m. and 4:00 p.m. At each valuation time, the value of each fund's assets will be determined in the manner described on the following page. EQUITY FUNDS. Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Equity securities for which the primary market is the U.S. are valued at last sale price or, if no sale has occurred, at the closing bid price. Equity securities for which the primary market is outside the U.S. are valued using the official closing price or the last sale price in the principal market where they are traded. If the last sale price (on the local exchange) is unavailable, the last evaluated quote or last bid price is normally used. Short-term securities are valued either at amortized cost or at original cost plus accrued interest, both of which approximate current value. Fixed-income securities are valued primarily by a pricing service that uses a vendor security valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. This twofold approach is believed to more accurately reflect fair value because it takes into account appropriate factors such as institutional trading in similar groups of securities, yield, quality, coupon rate, maturity, type of issue, trading characteristics, and other market data, without exclusive reliance upon quoted, exchange, or over-the counter prices. Use of pricing services has been approved by the Board of Trustees. Securities and other assets for which there is no readily available market are valued in good faith by a committee appointed by the Board of Trustees. The procedures set forth above need not be used to determine the value of the securities owned by the fund if, in the opinion of a committee appointed by the Board of Trustees, some other method (e.g., closing over-the-counter bid prices in the case of debt instruments traded on an exchange) would more accurately reflect the fair market value of such securities. Generally, the valuation of foreign and domestic equity securities, as well as corporate bonds, U.S. government securities, money market instruments, and repurchase agreements, is substantially completed each day at the close of the NYSE. The values of any such securities held by the fund are determined as of such time for the purpose of computing the fund's net asset value. Foreign security prices are furnished by independent brokers or quotation services which express the value of securities in their local currency. FSC gathers all exchange rates daily at the close of the NYSE using the last quoted price on the local currency and then translates the value of foreign securities from their local currency into U.S. dollars. Any changes in the value of forward contracts due to exchange rate fluctuations and days to maturity are included in the calculation of net asset value. If an extraordinary event that is expected to materially affect the value of a portfolio security occurs after the close of an exchange on which that security is traded, then the security will be valued as determined in good faith by a committee appointed by the Board of Trustees. MONEY MARKET FUND. The fund values its investments on the basis of amortized cost. This technique involves valuing an instrument at its cost as adjusted for amortization of premium or accretion of discount rather than its value based on current market quotations or appropriate substitutes which reflect current market conditions. The amortized cost value of an instrument may be higher or lower than the price the fund would receive if it sold the instrument. Valuing the fund's instruments on the basis of amortized cost and use of the term "money market fund" are permitted by Rule 2a-7 under the Investment Company Act of 1940. The fund must adhere to certain conditions under Rule 2a-7; these conditions are summarized in the Prospectus. The Board of Trustees oversees FMR's adherence to SEC rules concerning money market funds, and has established procedures designed to stabilize the fund's NAV at $1.00. At such intervals as they deem appropriate, the Trustees consider the extent to which NAV calculated by using market valuations would deviate from $1.00 per share. If the Trustees believe that a deviation from the fund's amortized cost per share may result in material dilution or other unfair results to shareholders, the Trustees have agreed to take such corrective action, if any, as they deem appropriate to eliminate or reduce, to the extent reasonably practicable, the dilution or unfair results. Such corrective action could include selling portfolio instruments prior to maturity to realize capital gains or losses or to shorten average portfolio maturity; withholding dividends; redeeming shares in kind; establishing NAV by using available market quotations; and such other measures as the Trustees may deem appropriate. During periods of declining interest rates, the fund's yield based on amortized cost may be higher than the yield based on market valuations. Under these circumstances, a shareholder in the fund would be able to obtain a somewhat higher yield than would result if the fund utilized market valuations to determine its NAV. The converse would apply in a period of rising interest rates. PERFORMANCE The funds may quote performance in various ways. All performance information supplied by the funds in advertising is historical and is not intended to indicate future returns. The equity funds' share prices, yields and total returns, and the money market fund's yields and total returns, fluctuate in response to market conditions and other factors. When redeemed, the value of the equity funds' shares may be more or less than their original cost. TOTAL RETURN CALCULATIONS. Total returns quoted in advertising reflect all aspects of a fund's return, including the effect of reinvesting dividends and capital gain distributions, and any change in a fund's net asset value per share (NAV) over the period. Average annual returns are calculated by determining the growth or decline in value of a hypothetical historical investment in a fund over a stated period, and then calculating the annually compounded percentage rate that would have produced the same result if the rate of growth or decline in value had been constant over the period. For example, a cumulative return of 100% over ten years would produce an average annual return of 7.18%, which is the steady annual rate that would equal 100% growth on a compounded basis in ten years. While average annual returns are a convenient means of comparing investment alternatives, investors should realize that each fund's performance is not constant over time, but changes from year to year, and that average annual returns represent averaged figures as opposed to the actual year-to-year performance of each fund. In addition to average annual returns, a fund may quote unaveraged or cumulative total returns reflecting the simple change in value of an investment over a stated period. Average annual and cumulative total returns may be quoted as a percentage or as a dollar amount, and may be calculated for a single investment, a series of investments, and/or a series of redemptions, over any time period. Total returns may be broken down into their components of income and capital (including capital gains and changes in share price) in order to illustrate the relationship of these factors and their contributions to total return. An example of this type of illustration is given on pages 20 through 26. Total returns may be quoted with or without taking the funds' 3% sales charge into account. Total returns generally will not include the effect of paying exchange or redemption fees or other charges for special transactions or services. Excluding fees or charges from a total return calculation produces a higher total return figure. Total returns, yields, and other performance information may be quoted numerically or in a table, graph, or similar illustration. NET ASSET VALUE. Charts and graphs using a stock fund's net asset values, adjusted net asset values, and benchmark indices may be used to exhibit performance. An adjusted NAV includes any distributions paid by the fund and reflects all elements of its return. Unless otherwise indicated, the fund's adjusted NAVs are not adjusted for sales charges, if any. MOVING AVERAGES. An equity fund may illustrate performance using moving averages. A long-term moving average is the average of each week's adjusted closing NAV for a specified period. A short-term moving average is the average of each day's adjusted closing NAV for a specified period. Moving Average Activity Indicators combine adjusted closing NAVs from the last business day of each week with moving averages for a specified period to produce indicators showing when an NAV has crossed, stayed above, or stayed below its moving average. On February 28, 199 4 , the 13-week and 39-week short-term moving averages for each equity fund were as follows: Air Transportation, __ and __ ; American Gold, __ and __ ; Automotive, __ and __ ; Biotechnology, __ and __ ; Brokerage and Investment Management, __ and __ ; Chemicals, __ and __ ; Computers, __ and __; Construction and Housing, __ and __ ; Consumer Products, __ and __ ; Defense and Aerospace, __ and __ ; Developing Communications, __ and __ ; Electronics, __ and __ ; Energy, and ; Energy Service, __ and __ ; Environmental Services, __ and __ ; Financial Services, __ and __ ; Food and Agriculture, __ and __ ; Health Care, __ and __ ; Home Finance, __ and __ ; Industrial Equipment, __ and __ ; Industrial Materials, __ and __ ; Insurance, __ and __ ; Leisure, __ and __ ; Medical Delivery, __ and __ ; Multimedia, __ and __; Paper and Forest Products, __ and __ ; Natural Gas, __ and __; Precious Metals, __ and __ ; Regional Banks, __ and __ ; Retailing, __ and __ ; Software and Computer Services, __ and __ ; Technology, __ and __ ; Telecommunications, __ and __ ; Transportation, __ and __ ; and Utilities, __ and , respectively. HISTORICAL RESULTS. The following table shows each fund's total returns for the periods ended February 28, 199 4 . The total returns quoted are based on a hypothetical $10,000 investment in each fund and include the effect of the funds' 3% sales charge, but do not include the effects of the equity funds' exchange or redemption fees. AVERAGE ANNUAL TOTAL RETURNS CUMULATIVE TOTAL RETURNS One Five Ten Life of One Five Ten Life of Year Years Years Fund Year Years Years Fund
Air Transportation American Gold Automotive Biotechnology Brokerage and Investment Management Chemicals Computers Construction and Housing Consumer Products Defense and Aerospace Developing Communications Electronics Energy Energy Service Environmental Services Financial Services Food and Agriculture Health Care Home Finance Industrial Equipment Industrial Materials Insurance Leisure Medical Delivery Multimedia Natural Gas Paper and Forest Products Precious Metals and Minerals Regional Banks Retailing Software and Computer Services Technology Telecommunications Transportation Utilities Money Market
The table below shows the value of a hypothetical $10,000 investment invested in each equity fund from its commencement of operations, or February 28, 198 4 for funds in operation for ten years or more, through February 28, 199 4 , after deducting the funds' 3% sales charge and assuming all distributions were reinvested. The table compares each fund's return to the record of the Standard & Poor's 500 Composite Stock Price Index (S&P 500) and the cost of living (measured by the Consumer Price Index, or CPI) over the same period. The S&P 500 comparison is provided to show how each fund's total return compared to the record of a broad average of common stock prices. Each fund has the ability to invest in securities not included in the index, and its investment portfolio normally will not be similar in composition to the index. The S&P 500 is based on the prices of unmanaged groups of stocks and assumes reinvestment of dividends paid on those stocks. Unlike each fund's returns, its return does not include the effect of paying brokerage commissions and other costs of investing. S&P 500 is a registered trademark of Standard & Poor's Corporation. The figures below (rounded to the nearest dollar) represent the value of an investment in each fund before redemption, and do not take the equity funds' exchange or redemption fees into account. This was a period of widely fluctuating stock prices, and should not be considered representative of the dividend income or capital gain or loss that could be realized from investments in the funds today.
FIDELITY SELECT PORTFOLIOS INDICES
VALUE OF VALUE OF VALUE OF FISCAL INITIAL REINVESTED REINVESTED PERIOD $10,000 CAPITAL GAIN DIVIDEND TOTAL COST FUND ENDED INVESTMENT DISTRIBUTIONS DISTRIBUTIONS VALUE S&P 500 OF LIVING
ENERGY 2/28/85 13,449 0 179 13,628 13,394 10,827 2/28/86 12,110 0 913 13,023 17,480 11,164 2/28/87 15,822 0 1,194 17,015 22,640 11,399 2/29/88 14,398 396 1,130 15,923 22,036 11,849 2/28/89 16,029 440 1,722 18,191 24,655 12,421 2/28/90 20,946 882 2,347 24,175 29,316 13,075 2/28/91 18,828 2,824 2,313 23,965 33,611 13,769 2/29/92 17,246 2,615 2,362 22,223 38,991 14,157 2/28/93 19,278 2,924 3,114 25,316 43,152 14,617 2/28/94 FINANCIAL 2/28/85 16,194 37 91 16,321 13,394 10,827 SERVICES 2/28/86 24,117 55 424 24,596 17,480 11,164 2/28/87 26,671 318 629 27,618 22,640 11,399 2/29/88 20,215 1,640 585 22,440 22,036 11,849 2/28/89 20,762 1,685 1,284 23,731 24,655 12,421 2/28/90 22,051 1,943 1,620 25,613 29,316 13,075 2/28/91 20,911 1,842 2,093 24,846 33,611 13,769 2/29/92 30,944 2,726 3,484 37,154 38,991 14,157 2/28/93 39,459 7,029 4,978 51,466 43,152 14,617 2/28/94
HEALTH CARE 2/28/85 11,254 91 42 11,387 13,394 10,827 2/28/86 16,062 130 90 16,282 17,480 11,164 2/28/87 23,748 440 133 24,321 22,640 11,399 2/29/88 19,208 947 107 20,263 22,036 11,849 2/28/89 19,674 971 281 20,926 24,655 12,421 2/28/90 24,363 1,697 426 26,485 29,316 13,075 2/28/91 35,902 6,893 780 43,574 33,611 13,769 2/29/92 43,642 15,119 1,216 59,976 38,991 14,157 2/28/93 28,858 15,486 912 45,256 43,152 14,617 2/28/94 PRECIOUS 2/28/85 7,419 12 109 7,540 13,394 10,827 METALS AND 2/28/86 8,112 13 428 8,553 17,480 11,164 MINERALS 2/28/87 10,408 17 681 11,106 22,640 11,399 2/29/88 9,731 99 685 10,515 22,036 11,849 2/28/89 9,256 94 1,075 10,425 24,655 12,421 2/28/90 11,093 113 1,441 12,647 29,316 13,075 2/28/91 8,501 86 1,240 9,827 33,611 13,769 2/29/92 8,524 86 1,333 9,944 38,991 14,157 2/28/93 7,676 78 1,373 9,126 43,152 14,617 2/28/94
FIDELITY SELECT PORTFOLIOS INDICES
VALUE OF VALUE OF VALUE OF FISCAL INITIAL REINVESTED REINVESTED PERIOD $10,000 CAPITAL GAIN DIVIDEND TOTAL COST FUND ENDED INVESTMENT DISTRIBUTIONS DISTRIBUTIONS VALUE S&P 500 OF LIVING
TECHNOLOGY 2/28/85 10,648 227 0 10,875 13,394 10,827 2/28/86 10,789 230 227 11,246 17,480 11,164 2/28/87 12,202 309 257 12,768 22,640 11,399 2/29/88 8,086 613 170 8,869 22,036 11,849 2/28/89 7,954 603 167 8,724 24,655 12,421 2/28/90 9,158 694 193 10,044 29,316 13,075 2/28/91 12,011 910 253 13,174 33,611 13,769 2/29/92 16,300 1,235 446 17,981 38,991 14,157 2/28/93 15,781 2,787 432 19,000 43,152 14,617 2/28/94 UTILITIES 2/28/85 13,677 0 221 13,898 13,394 10,827 2/28/86 18,802 0 756 19,558 17,480 11,164 2/28/87 21,821 115 1,054 22,990 22,640 11,399 2/29/88 19,400 835 1,329 21,564 22,036 11,849 2/28/89 20,649 888 2,705 24,242 24,655 12,421 2/28/90 25,484 1,096 4,155 30,735 29,316 13,075 2/28/91 27,070 1,741 5,012 33,822 33,611 13,769 2/29/92 28,020 3,004 6,900 37,923 38,991 14,157 2/28/93 31,789 5,421 9,404 46,614 43,152 14,617 2/28/94 DEFENSE AND 2/28/85(1) $ 12,959 $ 0 $ 0 $12,959 $11,801 $10,281* AEROSPACE 2/28/86 14,453 0 113 14,566 15,401 10,601 2/28/87 16,587 211 156 16,953 19,947 10,824 2/29/88 11,902 687 112 12,700 19,415 11,251 2/28/89 11,398 658 107 12,162 21,722 11,794 2/28/90 11,339 654 106 12,100 25,829 12,415 2/28/91 12,562 725 249 13,535 29,613 13,075 2/29/92 14,482 836 353 15,670 34,354 13,443 2/28/93 14,628 844 356 15,828 38,019 13,880 2/28/94
LEISURE 2/28/85(1) $ 13,202 $ 0 $ 0 $13,202 $11,801 $10,281 2/28/86 19,672 0 32 19,704 15,401 10,601 2/28/87 24,357 43 50 24,450 19,947 10,824 2/29/88 20,874 2,389 43 23,307 19,415 11,251 2/28/89 24,997 3,357 52 28,406 21,722 11,794 2/28/90 24,939 5,335 120 30,394 25,829 12,415 2/28/91 25,045 5,358 432 30,835 29,613 13,075 2/29/92 30,992 6,630 534 38,156 34,354 13,443 2/28/93 34,697 7,423 598 42,718 38,019 13,880 2/28/94
Initial $10,000 investment made on (1) May 8, 1984; (2) July 29, 1985; (3) December 16, 1985; (4) June 30, 1986; (5) September 29, 1986; (6) June 29, 1989; (7) June 29, 1990; or (8) April 21, 1993. . *Cost of living as measured by the Consumer Price Index starting at the month-end closest to the initial investment date. FIDELITY SELECT PORTFOLIOS INDICES
VALUE OF VALUE OF VALUE OF FISCAL INITIAL REINVESTED REINVESTED PERIOD $10,000 CAPITAL GAIN DIVIDEND TOTAL COST FUND ENDED INVESTMENT DISTRIBUTIONS DISTRIBUTIONS VALUE S&P 500 OF LIVING
BROKERAGE AND 2/28/86(2) $ 12,853 $ 0 $ 0 $12,853 $12,078 $10,139 INVESTMENT 2/28/87 14,278 22 17 14,317 15,643 10,353 MANAGEMENT 2/29/88 6,994 1,324 42 8,361 15,225 10,761 2/28/89 8,051 1,525 165 9,741 17,035 11,280 2/28/90 8,070 1,528 348 9,947 20,256 11,874 2/28/91 8,051 1,525 472 10,048 23,223 12,505 2/29/92 12,406 2,349 744 15,499 26,940 12,857 2/28/93 13,793 2,612 827 17,232 29,815 13,275 2/28/94 CHEMICALS 2/28/86(2) $ 13,978 $ 0 $ 0 $13,978 $12,078 $10,139
2/28/87 18,818 75 0 18,893 15,643 10,353 2/29/88 18,857 118 0 18,975 15,225 10,761 2/28/89 22,174 139 0 22,313 17,035 11,280 2/28/90 21,893 1,190 149 23,232 20,256 11,874 2/28/91 25,065 2,024 281 27,369 23,223 12,505 2/29/92 30,933 3,379 566 34,879 26,940 12,857 2/28/93 27,761 6,683 862 35,306 29,815 13,275 2/28/94
COMPUTERS 2/28/86(2) $ 11,727 $ 0 $ 0 $11,727 $12,078 $10,139
2/28/87 15,617 56 0 15,673 15,643 10,353 2/29/88 11,116 376 10 11,503 15,225 10,761 2/28/89 10,622 359 10 10,991 17,035 11,280 2/28/90 11,795 399 11 12,205 20,256 11,874 2/28/91 15,957 540 166 16,662 23,223 12,505 2/29/92 19,187 917 528 20,631 26,94 0 12,857 2/28/93 19,546 934 538 21,017 29,815 13,275 2/28/94 ELECTRONICS 2/28/86(2) $ 11,097 $ 0 $ 0 $11,097 $12,078 $10,139 2/28/87 10,331 0 0 10,331 15,643 10,353 2/29/88 7,401 0 0 7,401 15,225 10,761 2/28/89 6,635 0 0 6,635 17,035 11,280 2/28/90 8,391 0 0 8,391 20,256 11,874 2/28/91 9,846 0 12 9,858 23,223 12,505 2/29/92 12,678 0 16 12,694 26,940 12,857 2/28/93 13,852 0 17 13,869 29,815 13,275 2/28/94
FOOD AND 2/28/86(2) $ 12,329 $ 0 $ 0 $12,329 $12,078 $10,139
AGRICULTURE 2/28/87 16,539 0 0 16,539 15,643 10,353 2/29/88 15,413 591 32 16,037 15,225 10,761 2/28/89 18,449 708 92 19,249 17,035 11,280 2/28/90 21,321 2,965 146 24,431 20,256 11,874 2/28/91 26,171 4,620 517 31,307 23,223 12,505 2/29/92 29,323 7,138 714 37,175 26,940 12,857 2/28/93 29,934 9,354 857 40,145 29,815 13,275 2/28/94
Initial $10,000 investment made on (1) May 8, 1984; (2) July 29, 1985; (3) December 16, 1985; (4) June 30, 1986; (5) September 29, 1986; (6) June 29, 1989; (7) June 29, 1990 ; or (8) April 21, 1993 . * Cost of Living as measured by the Consumer Price Index starting at the month-end closest to the initial investment date. FIDELITY SELECT PORTFOLIOS INDICES
VALUE OF VALUE OF VALUE OF FISCAL INITIAL REINVESTED REINVESTED PERIOD $10,000 CAPITAL GAIN DIVIDEND TOTAL COST FUND ENDED INVESTMENT DISTRIBUTIONS DISTRIBUTIONS VALUE S&P 500 OF LIVING
SOFTWARE AND 2/28/86(2) $11,776 $ 0 $ 0 $11,776 $12,078 $10,139 COMPUTER 2/28/87 16,277 0 0 16,277 15,643 10,353 SERVICES 2/29/88 13,405 708 0 14,113 15,225 10,761 2/28/89 14,278 754 0 15,032 17,035 11,280 2/28/90 14,579 1,657 0 16,236 20,256 11,874 2/28/91 18,285 2,078 0 20,362 23,223 12,505 2/29/92 22,611 6,241 0 28,852 26,940 12,857 2/28/93 26,791 7,395 0 34,186 29,815 13,275 2/28/94 TELECOMMUN- 2/28/86(2) $11,650 $ 0 $ 0 $11,650 $12,078 $10,139 ICATIONS 2/28/87 15,607 0 0 15,607 15,643 10,353 2/29/88 15,452 401 22 15,876 15,225 10,761 2/28/89 19,720 545 161 20,427 17,035 11,280 2/28/90 23,358 1,560 303 25,221 20,256 11,874 2/28/91 23,076 1,541 787 25,405 23,223 12,505 2/29/92 28,314 1,891 1,288 31,494 26,940 12,857 2/28/93 33,164 2,778 1,729 37,672 29,815 13,275 2/28/94 AIR TRANS- 2/28/86(3) $10,554 $ 0 $ 0 $10,554 $10,895 $10,000 PORTATION 2/28/87 11,912 0 0 11,912 14,111 10,210 2/29/88 8,100 1,141 22 9,263 13,735 10,613 2/28/89 10,457 1,474 28 11,959 15,367 11,125 2/28/90 10,573 2,080 29 12,682 18,273 11,711 2/28/91 11,514 2,265 31 13,810 20,949 12,333 2/29/92 13,735 3,043 37 16,816 24,303 12,681 2/28/93 13,192 3,387 36 16,615 26,896 13,092 2/28/94 AMERICAN GOLD 2/28/86(3) $ 9,622 $ 0 $ 0 $ 9,622 $10,895 $10,000 2/28/87 14,589 0 0 14,589 14,111 10,210 2/29/88 13,861 153 51 14,066 13,735 10,613 2/28/89 15,171 168 56 15,395 15,367 11,125 2/28/90 17,227 191 64 17,481 18,273 11,711 2/28/91 13,202 146 49 13,396 20,949 12,333 2/29/92 13,095 145 48 13,288 24,303 12,681 2/28/93 13,726 152 51 13,928 26,896 13,092 2/28/94 BIOTECHNOLOGY 2/28/86(3) $10,418 $ 0 $ 0 $10,418 $10,895 $10,000 2/28/87 13,716 0 0 13,716 14,111 10,210 2/29/88 10,253 318 0 10,571 13,735 10,613 2/28/89 10,398 323 0 10,721 15,367 11,125 2/28/90 14,046 676 0 14,722 18,273 11,711 2/28/91 24,619 2,093 0 26,712 20,949 12,333 2/29/92 31,962 5,805 26 37,793 24,303 12,681 2/28/93 21,922 7,853 18 29,793 26,896 13,092 2/28/94
Initial $10,000 investment made on (1) May 8, 1984; (2) July 29, 1985; (3) December 16, 1985; (4) June 30, 1986; (5) September 29, 1986; (6) June 29, 1989; (7) June 29, 1990 ; or (8) April 21, 1993 . * Cost of Living as measured by the Consumer Price Index starting at the month-end closest to the initial investment date. FIDELITY SELECT PORTFOLIOS INDICES
VALUE OF VALUE OF VALUE OF FISCAL INITIAL REINVESTED REINVESTED PERIOD $10,000 CAPITAL GAIN DIVIDEND TOTAL COST FUND ENDED INVESTMENT DISTRIBUTIONS DISTRIBUTIONS VALUE S&P 500 OF LIVING
ENERGY SERVICE 2/28/86(3) $ 8,740 $ 0 $ 0 $ 8,740 $10,895 $10,000 2/28/87 9,622 0 0 9,622 14,111 10,210 2/29/88 8,284 0 0 8,284 13,735 10,613 2/28/89 7,828 0 0 7,828 15,367 11,125 2/28/90 11,912 0 0 11,912 18,273 11,711 2/28/91 13,095 0 22 13,117 20,949 12,333 2/29/92 9,099 0 15 9,114 24,303 12,681 2/28/93 10,680 0 18 10,698 26,896 13,092 2/28/94 HOME FINANCE 2/28/86(3) $12,794 $ 0 $ 0 $12,794 $10,895 $10,000 2/28/87 15,782 0 0 15,782 14,111 10,210 2/29/88 8,410 4,117 0 12,527 13,735 10,613 2/28/89 9,991 4,891 212 15,093 15,367 11,125 2/28/90 8,905 5,024 245 14,173 18,273 11,711 2/28/91 9,719 5,483 545 15,748 20,949 12,333 2/29/92 14,860 8,384 1,129 24,373 24,303 12,681 2/28/93 21,515 12,662 1,653 35,830 26,896 13,092 2/28/94 INSURANCE 2/28/86(3) $11,475 $ 0 $ 0 $11,475 $10,895 $10,000 2/28/87 12,591 0 0 12,591 14,111 10,210 2/29/88 9,904 0 153 10,056 13,735 10,613 2/28/89 11,611 0 276 11,887 15,367 11,125 2/28/91 15,307 0 521 15,827 20,949 12,333 2/29/92 18,207 0 916 19,123 24,303 12,681 2/28/93 20,933 2,218 1,092 24,243 26,896 13,092 2/28/94 RETAILING 2/28/86(3) $10,253 $ 0 $ 0 $10,253 $10,895 $10,000 2/28/87 13,124 0 0 13,124 14,111 10,210 2/29/88 10,748 907 274 11,929 13,735 10,613 2/28/89 12,794 1,285 361 14,440 15,367 11,125 2/28/90 12,678 4,026 532 17,235 18,273 11,711 2/28/91 15,093 4,841 633 20,567 20,949 12,333 2/29/92 22,834 8,119 958 31,910 24,303 12,681 2/28/93 23,154 9,990 971 34,115 26,896 13,092 2/28/94 AUTOMOTIVE 2/28/87(4) $11,708 $ 0 $ 0 $11,708 $11,644 $10,192 2/29/88 10,486 536 47 11,068 11,333 10,594 2/28/89 11,718 599 52 12,369 12,680 11,105 2/28/90 11,417 584 470 12,471 15,077 11,689 2/28/91 11,970 612 676 13,257 17,286 12,311 2/29/92 16,645 1,848 939 19,433 20,053 12,658 2/28/93 20,069 2,677 1,207 23,953 22,193 13,068 MULTIMEDIA 2/28/87(4) $11,912 $ 0 $ 0 $11,912 $11,644 $10,192 2/29/88 11,436 893 11 12,341 11,333 10,594 2/28/89 14,065 2,043 14 16,122 12,680 11,105 2/28/90 11,980 4,179 12 16,170 15,077 11,689 2/28/91 11,834 4,128 12 15,974 17,286 12,311 2/29/92 15,617 5,447 16 21,080 20,053 12,658 2/28/93 17,712 6,493 18 24,223 22,193 13,068 2/28/94
Initial $10,000 investment made on (1) May 8, 1984; (2) July 29, 1985; (3) December 16, 1985; (4) June 30, 1986; (5) September 29, 1986; (6) June 29, 1989; (7) June 29, 1990; or (8) April 21, 1993 . * Cost of Living as measured by the Consumer Price Index starting at the month-end closest to the initial investment date. FIDELITY SELECT PORTFOLIOS INDICES
VALUE OF VALUE OF VALUE OF FISCAL INITIAL REINVESTED REINVESTED PERIOD $10,000 CAPITAL GAIN DIVIDEND TOTAL COST FUND ENDED INVESTMENT DISTRIBUTIONS DISTRIBUTIONS VALUE S&P 500 OF LIVING
MEDICAL 2/28/87(4) $ 8,953 $ 0 $ 0 $ 8,953 $11,644 $10,192 DELIVERY 2/29/88 6,955 408 23 7,386 11,333 10,594 2/28/89 8,478 498 28 9,003 12,680 11,105 2/28/90 10,253 837 81 11,172 15,077 11,689 2/28/91 16,325 1,862 130 18,317 17,286 12,311 2/29/92 21,243 4,008 169 25,420 20,053 12,658 2/28/93 14,026 4,185 111 18,322 22,193 13,068 2/28/94 PAPER AND FOREST 2/28/87(4) $15,190 $ 0 $ 0 $15,190 $11,644 $10,192 PRODUCTS 2/29/88 11,601 1,082 42 12,725 11,333 10,594 2/28/89 11,533 1,076 74 12,683 12,680 11,105 2/28/90 11,097 1,035 222 12,354 15,077 11,689 2/28/91 11,456 1,069 445 12,970 17,286 12,311 2/29/92 14,579 1,360 963 16,902 20,053 12,658 2/28/93 15,598 1,455 1,139 18,192 22,193 13,068 2/28/94 REGIONAL BANKS 2/28/87(4) $ 9,487 $ 0 $ 0 $ 9,487 $11,644 $10,192 2/29/88 8,575 175 70 8,819 11,333 10,594 2/28/89 9,894 707 296 10,897 12,680 11,105 2/28/90 10,301 1,392 419 12,113 15,077 11,689 2/28/91 9,807 1,325 601 11,733 17,286 12,311 2/29/92 15,316 2,839 1,156 19,312 20,053 12,658 2/28/93 20,254 4,889 1,684 26,827 22,193 13,068 2/28/94 CONSTRUCTION 2/28/87(5) $13,483 $ 0 $ 0 $13,483 $12,407 $10,127 AND HOUSING 2/29/88 10,195 158 0 10,353 12,076 10,526 2/28/89 11,844 470 64 12,377 13,511 11,034 2/28/90 11,029 2,007 132 13,167 16,066 11,615 2/28/91 10,961 3,447 314 14,722 18,419 12,232 2/29/92 13,250 5,569 380 19,199 21,368 12,577 2/28/93 15,268 6,433 437 22,138 23,648 12,985 2/28/94 INDUSTRIAL 2/28/87(5) $12,804 $ 0 $ 0 $12,804 $12,407 $10,127 EQUIPMENT 2/29/88 9,768 256 0 10,024 12,076 10,526 2/28/89 9,855 259 0 10,114 13,511 11,034 2/28/90 11,456 301 0 11,756 16,066 11,615 2/28/91 11,465 301 79 11,846 18,419 12,232 2/29/92 13,881 364 236 14,481 21,368 12,577 2/28/93 14,589 383 248 15,220 23,648 12,985 2/28/94
Initial $10,000 investment made on (1) May 8, 1984; (2) July 29, 1985; (3) December 16, 1985; (4) June 30, 1986; (5) September 29, 1986; (6) June 29, 1989; (7) June 29, 1990 ; or (8) April 21, 1993 . * Cost of Living as measured by the Consumer Price Index starting at the month-end closest to the initial investment date. FIDELITY SELECT PORTFOLIOS INDICES
VALUE OF VALUE OF VALUE OF FISCAL INITIAL REINVESTED REINVESTED PERIOD $10,000 CAPITAL GAIN DIVIDEND TOTAL COST FUND ENDED INVESTMENT DISTRIBUTIONS DISTRIBUTIONS VALUE S&P 500 OF LIVING
INDUSTRIAL 2/28/87(5) $13,017 $ 0 $ 0 $13,017 $12,407 $10,127 MATERIALS 2/29/88 12,513 11 21 12,545 12,076 10,526 2/28/89 13,056 11 238 13,305 13,511 11,034 2/28/90 12,629 11 230 12,870 16,066 11,615 2/28/91 12,067 10 539 12,616 18,419 12,232 2/29/92 16,063 14 793 16,869 21,368 12,577 2/28/93 16,917 14 920 17,851 23,648 12,985 2/28/94
TRANSPORTATION 2/28/87(5) $11,398 $ 0 $ 0 $11,398 $12,407 $10,127 2/29/88 9,264 155 0 9,419 12,076 10,526 2/28/89 12,377 207 0 12,585 13,511 11,034 2/28/90 11,970 2,487 0 14,457 16,066 11,615 2/28/91 10,942 2,822 0 13,764 18,419 12,232 2/29/92 15,006 3,871 61 18,938 21,368 12,577 2/28/93 18,120 5,156 74 23,350 23,648 12,985 2/28/94 ENVIRONMENTAL 2/28/90(6) $10,554 $ 0 $ 9 $10,563 $10,422 $10,314 SERVICES 2/28/91 12,600 0 11 12,611 11,949 10,862 2/29/92 12,649 486 11 13,146 13,862 11,168 2/28/93 11,019 838 10 11,867 15,341 11,531 2/28/94 CONSUMER 2/28/91(7) $10,505 $ 0 $ 65 $10,570 $10,522 $10,377 PRODUCTS 2/29/92 13,512 241 83 13,836 12,206 10,670 2/28/93 12,581 1,193 77 13,851 13,509 11,016 DEVELOPING 2/28/91(7) $10,777 $ 0 $ 0 $10,777 $10,522 $10,377 COMMUNICATIONS 2/29/92 13,997 1,002 0 14,999 12,206 10,670 2/28/93 15,947 1,174 0 17,121 13,509 11,016 2/28/94 NATURAL GAS 2/28/94
Initial $10,000 investment made on (1) May 8, 1984; (2) July 29, 1985; (3) December 16, 1985; (4) June 30, 1986; (5) September 29, 1986; (6) June 29, 1989; (7) June 29, 1990 ; or (8) April 21, 1993 . * Cost of Living as measured by the Consumer Price Index starting at the month-end closest to the initial investment date. Explanatory Notes: Investments in the funds are subject to a sales charge of 3% of the offering price (or 3.09% of the net amount invested). After deduction of the sales charge, the net amount invested in shares of each fund was $9,700. Values for each fund are based on changes in net asset value, including net investment income earned and net capital gains realized during each period by each fund. The table below reflects the cost of the initial $10,000 investment in each of the equity funds, plus the aggregate cost of reinvested dividends and capital gain distributions, if any, from commencement of operations, or February 28, 198 4 for funds in operation for ten years or more, through February 28, 199 4 . If no additional shares of these funds had been acquired through the reinvestment of distributions, the cash payments from these funds would have come to the amounts shown in column (A) for capital gain distributions, and the amounts shown in column (B) for income dividends. No adjustment has been made for a shareholder's income tax liability on dividends and capital gain distributions. (A) (B) CAPITAL GAIN INCOME FUND COST DISTRIBUTIONS DIVIDENDS Energy Financial Services Health Care Precious Metals Technology Utilities Defense Leisure Brokerage Chemicals Computers Electronics Food and Agriculture Software Telecommunications Air Transportation American Gold Biotechnology Energy Service Home Finance Insurance Retailing Automotive Multimedia Medical Delivery Paper and Forest Products Regional Banks Construction and Housing Industrial Equipment Industrial Materials Transportation Environmental Services Consumer Products Developing Communications Natural Gas YIELD CALCULATIONS. To compute the money market fund's yield for a period, the net change in value of a hypothetical account containing one share reflects the value of additional shares purchased with dividends from the original share and dividends declared on both the original share and any additional shares. The net change is then divided by the value of the account at the beginning of the period to obtain a base period return. This base period return is annualized to obtain a current annualized yield. The money market fund may also calculate an effective yield by compounding the base period return over a one-year period. In addition to current yield, the fund may quote yields in advertising based on any historical seven-day period. Yield information may be useful in reviewing the fund's performance and in providing a basis for comparison with other investment alternatives. However, the fund's yield fluctuates, unlike investments that pay a fixed interest rate over a stated period of time. The fund's yield is calculated on the same basis as yields for other money market funds, as required by regulations. When comparing investment alternatives, investors should also note the quality and maturity of the portfolio securities of the respective investment companies they have chosen to consider. Investors should recognize that in periods of declining interest rates the fund's yield will tend to be somewhat higher than prevailing market rates, and in periods of rising interest rates the fund's yield will tend to be somewhat lower. Also, when interest rates are falling, the inflow of net new money to the fund from the continuous sale of its shares will likely be invested in instruments producing lower yields than the balance of the fund's holdings, thereby reducing the fund's current yield. In periods of rising interest rates, the opposite can be expected to occur. The money market fund may reference the growth and variety of money market mutual funds and the adviser's innovation and participation in the industry. A fund's performance may be compared to the performance of other mutual funds in general, or to the performance of particular types of mutual funds. These comparisons may be expressed as mutual fund rankings prepared by Lipper Analytical Services, Inc. (Lipper), an independent service located in Summit, New Jersey that monitors the performance of mutual funds. Lipper generally ranks funds on the basis of total return, assuming reinvestment of distributions, but does not take sales charges or redemption fees into consideration, and is prepared without regard to tax consequences. Lipper may also rank money market funds based on yield. In addition to the mutual fund rankings, a fund's performance may be compared to mutual fund performance indices prepared by Lipper. From time to time, a fund's performance may also be compared to other mutual funds tracked by financial or business publications and periodicals. For example, the fund may quote Morningstar, Inc. in its advertising materials. Morningstar, Inc. is a mutual fund rating service that rates mutual funds on the basis of risk-adjusted performance. Rankings that compare the performance of Fidelity funds to one another in appropriate categories over specific periods of time may also be quoted in advertising. Fidelity may provide information designed to help individuals understand their investment goals and explore various financial strategies. For example, Fidelity's FundMatchsm Program includes a workbook describing general principles of investing, such as asset allocation, diversification, risk tolerance, and goal setting; a questionnaire designed to help create a personal financial profile; and an action plan offering investment alternatives. Materials may also include discussions of Fidelity's three asset allocation funds and other Fidelity funds, products, and services. Ibbotson Associates of Chicago, Illinois (Ibbotson) provides historical returns of the capital markets in the United States, including common stocks, small capitalization stocks, long-term corporate bonds, intermediate-term government bonds, long-term government bonds, Treasury bills, the U.S. rate of inflation (based on the CPI), and combinations of various capital markets. The performance of these capital markets is based on the returns of different indices. Fidelity funds may use the performance of these capital markets in order to demonstrate general risk-versus-reward investment scenarios. Performance comparisons may also include the value of a hypothetical investment in any of these capital markets. The risks associated with the security types in any capital market may or may not correspond directly to those of the funds. Ibbotson calculates total returns in the same method as the funds. The funds may also compare performance to that of other compilations or indices that may be developed and made available in the future. The money market fund may compare its performance or the performance of securities in which it may invest to averages published by IBC USA (Publications), Inc. of Ashland, Massachusetts. These averages assume reinvestment of distributions. The IBC/Donoghue's MONEY FUND AVERAGES(registered trademark)/All Taxable, which is reported in the MONEY FUND REPORT(registered trademark), covers over ___ taxable money market funds. In advertising materials, Fidelity may reference or discuss its products and services, which may include: other Fidelity funds; retirement investing; brokerage products and services; the effects of periodic investment plans and dollar cost averaging; saving for college; charitable giving; and the Fidelity credit card. In addition, Fidelity may quote financial or business publications and periodicals, including model portfolios or allocations, as they relate to fund management, investment philosophy, and investment techniques. Fidelity may also reprint, and use as advertising and sales literature, articles from Fidelity Focus, a quarterly magazine provided free of charge to Fidelity fund shareholders. A fund may present its fund number, Quotron(registered trademark) number, and CUSIP number, and discuss or quote its current portfolio manager. VOLATILITY. The equity funds may quote various measures of volatility and benchmark correlation in advertising. In addition, a fund may compare these measures to those of other funds. Measures of volatility seek to compare the fund's historical share price fluctuations or total returns to those of a benchmark. Measures of benchmark correlation indicate how valid a comparative benchmark may be. All measures of volatility and correlation are calculated using averages of historical data. MOMENTUM INDICATORS indicate an equity fund's price movements over specific periods of time. Each point on the momentum indicator represents the fund's percentage change in price movements over that period. The equity funds may advertise examples of the effects of periodic investment plans, including the principle of dollar cost averaging. In such a program, an investor invests a fixed dollar amount in a fund at periodic intervals, thereby purchasing fewer shares when prices are high and more shares when prices are low. While such a strategy does not assure a profit or guard against loss in a declining market, the investor's average cost per share can be lower than if fixed numbers of shares are purchased at the same intervals. In evaluating such a plan, investors should consider their ability to continue purchasing shares during periods of low price levels. A fund may be available for purchase through retirement plans or other programs offering deferral of, or exemption from, income taxes, which may produce superior after-tax returns over time. For example, a $1,000 investment earning a taxable return of 10% annually would have an after-tax value of $1,949 after ten years, assuming tax was deducted from the return each year at a 31% rate. An equivalent tax-deferred investment would have an after-tax value of $2,100 after ten years, assuming tax was deducted at a 31% rate from the tax-deferred earnings at the end of the ten-year period. As of February 28, 199 4 , FMR managed over $ __ billion in equity fund assets as defined and tracked by Lipper. This figure represents the largest amount of equity fund assets under management by a mutual fund investment adviser in the United States, making FMR America's leading equity (stock) fund manager. ADDITIONAL PURCHASE AND REDEMPTION INFORMATION As provided for in Rule 22d-1 under the Investment Company Act of 1940, FDC exercises its right to waive the funds' 3% sales charge on shares acquired through reinvestment of dividends and capital gain distributions or in connection with a fund's merger with or acquisition of any investment company or trust. In addition, the funds' sales charge will not apply (1) if you buy shares as part of an employee benefit plan (including the Fidelity-sponsored 403(b) and corporate IRA programs but otherwise as defined in the Employee Retirement Income Security Act) maintained by a U.S. employer and having more than 200 eligible employees, or a minimum of $3,000,000 in plan assets invested in Fidelity mutual funds, or as part of an employee benefit plan maintained by a U.S. employer that is a member of a parent-subsidiary group of corporations (within the meaning of Section 1563(a)(1) of the Internal Revenue Code, with "50%" substituted for "80%") any member of which maintains an employee benefit plan having more than 200 eligible employees, or a minimum of $3,000,000 in plan assets invested in Fidelity mutual funds, or as part of an employee benefit plan maintained by a non-U.S. employer having 200 or more eligible employees or a minimum of $3,000,000 in plan assets invested in Fidelity mutual funds, the assets of which are held in a bona fide trust for the exclusive benefit of employees participating therein; (2) to shares purchased by an insurance company separate account used to fund annuity contracts purchased by employee benefit plans (including 403(b) programs, but otherwise as defined in the Employee Retirement Income Security Act), which, in the aggregate, have either more than 200 eligible employees or a minimum of $3,000,000 in assets invested in Fidelity funds; (3) to shares in a Fidelity IRA account purchased (including purchases by exchange) with the proceeds of a distribution from an employee benefit plan provided that: (i) at the time of the distribution, the employer, or an affiliate (as described in exemption (1) above) of such employer, maintained at least one employee benefit plan that qualified for exemption (1) and that had at least some portion of its assets invested in one or more mutual funds advised by FMR, or in one or more accounts or pools advised by Fidelity Management Trust Company; and (ii) the distribution is transferred from the plan to a Fidelity Rollover IRA account within 60 days from the date of the distribution; (4) if you are a charitable organization (as defined in Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more; (5) if you purchase shares for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined by Section 501(c)(3) of the Internal Revenue Code); (6) if you are an investor participating in the Fidelity Trust Portfolios program (these investors must make initial investments of $100,000 or more in the Trust Portfolios and must, during the initial six-month period, reach and maintain an aggregate balance of at least $500,000 in all accounts and subaccounts purchased through the Trust Portfolios program); (7) to shares purchased through Portfolio Advisory Services; (8) if you are a current or former Trustee or officer of a Fidelity fund or a current or retired officer, director, or full-time employee of FMR Corp. or its direct or indirect subsidiaries (a Fidelity Trustee or employee), the spouse of a Fidelity Trustee or employee, a Fidelity Trustee or employee acting as custodian for a minor child, or a person acting as trustee of a trust for the sole benefit of the minor child of a Fidelity Trustee or employee; or (9) if you are a bank trust officer, registered representative, or other employee of a Qualified Recipient. Qualified Recipients are securities dealers, or other entities, including banks and other financial institutions, who have sold the funds' shares under special arrangements in connection with FDC's sales activities. FDC has chosen to waive the fund's sales charge in these instances because of the efficiencies involved in sales of shares to these investors. The fund's sales charge may be reduced to reflect sales charges previously paid, or that would have been paid absent a reduction as noted in the prospectus, in connection with investments in other Fidelity funds. This includes reductions for investments in the following prototype or prototype-like retirement plans sponsored by FMR or FMR Corp.: The Fidelity IRA, The Fidelity Rollover IRA, The Fidelity SEP-IRA, The Fidelity 403(b) Program, The Fidelity Investments 401(a) Prototype Plan for Tax-Exempt Employers, and the CORPORATEplan for Retirement (Profit Sharing and Money Purchase Plan). Each fund is open for business and its net asset value per share (NAV) is calculated hourly each day the New York Stock Exchange (NYSE) is open for trading. The NYSE has designated the following holiday closings for 1994: Washington's Birthday (observed), Good Friday, Memorial Day (observed), Independence Day, Labor Day, Thanksgiving Day, and Christmas Day (observed). Although FMR expects the same holiday schedule, with the addition of New Year's Day, to be observed in the future, the NYSE may modify its holiday schedule at any time. FSC normally determines each fund's NAV hourly, from 10:00 a.m. to 4:00 p.m., and the final determination of each fund's NAV will coincide with the close of business of the NYSE (normally 4:00 p.m. Eastern time); however, NAV calculations may cease earlier if trading on the NYSE is restricted or as permitted by the SEC. To the extent that portfolio securities are traded in other markets on days when the NYSE is closed, a fund's NAV may be affected on days when investors do not have access to the fund to purchase or redeem shares. Portfolio securities in foreign markets may not be traded during the funds' business hours. The price of these securities will be their last determined price in the foreign market, and will not change during the funds' business day. If the Trustees determine that existing conditions make cash payments undesirable, redemption payments may be made in whole or in part in securities or other property, valued for this purpose as they are valued in computing a fund's NAV. Shareholders receiving securities or other property on redemption may realize a gain or loss for tax purposes, and will incur any costs of sale, as well as the associated inconveniences. Pursuant to Rule 11a-3 under the Investment Company Act of 1940 (the 1940 Act), each fund is required to give shareholders at least 60 days' notice prior to terminating or modifying its exchange privilege. Under the Rule, the 60-day notification requirement may be waived if (i) the only effect of a modification would be to reduce or eliminate an administrative fee, redemption fee, or deferred sales charge ordinarily payable at the time of an exchange, or (ii) a fund suspends the redemption of the shares to be exchanged as permitted under the 1940 Act or the rules and regulations thereunder, or the fund to be acquired suspends the sale of its shares because it is unable to invest amounts effectively in accordance with its investment objective and policies. In the Prospectus, each fund has notified shareholders that it reserves the right at any time, without prior notice, to refuse exchange purchases by any person or group if, in FMR's judgment, the fund would be unable to invest effectively in accordance with its investment objective and policies, or would otherwise potentially be adversely affected. DISTRIBUTIONS AND TAXES DISTRIBUTIONS. If you request to have distributions mailed to you and the U.S. Postal Service cannot deliver your checks, or if your checks remain uncashed for six months, Fidelity may reinvest your distributions at the then-current NAV. All subsequent distributions will then be reinvested until you provide Fidelity with alternate instructions. DIVIDENDS. A portion of the equity funds' dividends may qualify for the dividends-received deduction available to corporate shareholders to the extent that the funds' income is derived from qualifying dividends. Because the funds may earn other types of income, such as interest, income from securities loans, non-qualifying dividends and short-term capital gains, the percentage of dividends from the equity funds that qualify for the deduction will generally be less than 100%. Each fund will notify corporate shareholders annually of the percentage of that fund's dividends that qualify for the dividends-received deduction. A portion of the funds' dividends derived from certain U.S. government obligations may be exempt from state and local taxation. Gains (losses) attributable to foreign currency fluctuations are generally taxable as ordinary income and therefore will increase (decrease) dividend distributions. The funds will send each shareholder a notice in January describing the tax status of dividends and capital gain distributions for the prior year. CAPITAL GAIN DISTRIBUTIONS. Long-term capital gains earned by the funds on the sale of securities and distributed to shareholders are federally taxable as long-term capital gains, regardless of the length of time shareholders have held their shares. If a shareholder receives a long-term capital gain distribution on shares of a fund and such shares are held six months or less and are sold at a loss, the portion of the loss equal to the amount of the long-term capital gain distribution will be considered a long-term loss for tax purposes. Short-term capital gains distributed by the funds are taxable to shareholders as dividends, not as capital gains. Distributions from short-term capital gains do not qualify for the dividends-received deduction. FOREIGN TAXES. Foreign governments may withhold taxes on dividends and interest paid with respect to foreign securities typically at a rate between 10% and 35%. If, at the close of its fiscal year, more than 50% of a fund's total assets are invested in securities of foreign issuers, each fund will elect to pass through foreign taxes paid and thereby allow shareholders to take a credit or deduction on their individual tax returns. With the possible exception of the Precious Metals and Minerals Portfolio, FMR does not currently anticipate that the funds will qualify to pass foreign taxes paid through to shareholders. TAX STATUS OF THE FUNDS. Each fund has qualified and intends to continue to qualify as a "regulated investment company" for tax purposes, so that it will not be liable for federal tax on income and capital gains distributed to shareholders. In order to qualify as a regulated investment company and avoid being subject to federal income or excise taxes, each fund intends to distribute substantially all of its net investment income and realized capital gains within each calendar year as well as on a fiscal year basis. Each fund intends to comply with other tax rules applicable to regulated investment companies, including a requirement that capital gains from the sale of securities held less than three months constitute less than 30% of a fund's gross income for each fiscal year. Gains from some forward currency contracts, futures contracts, and options are included in this 30% calculation, which may limit the funds' investments in such instruments. Each fund is treated as a separate entity from the other portfolios of the fund for tax purposes. If a fund purchases shares in certain foreign investment entities, defined as passive foreign investment companies (PFIC's) in the Internal Revenue Code, it may be subject to U.S. federal income tax on a portion of any excess distribution or gain from the disposition of such shares. Interest charges may also be imposed on the fund with respect to deferred taxes arising from such distributions or gains. As of February 28, 199 4 the funds had capital loss carryovers available to offset future capital gains, approximated as follows: Aggregate Capital Loss Amount that Expires on February 28, Fund Carryovers 1996 1997 1998 1999 2000 2001 American Gold Brokerage and Investment Management Defense Energy Energy Service Environmental Services Industrial Equipment Medical Delivery Money Market Paper and Forest Products Precious Metals and Minerals Industrial Materials Subsequent to the reorganization of certain funds of the trust on October 26, 1990, the Insurance and Industrial Equipment Portfolios acquired substantially all of the assets of the Life Insurance and Automation and Machinery Portfolios, respectively. The Life Insurance and Automation and Machinery Portfolios have capital loss carryovers of approximately $96,000 and $143,000, respectively, available to offset future realized capital gains in the Insurance and Industrial Equipment Portfolios, respectively, to the extent provided by regulations. To the extent that capital loss carryovers are used to offset any future capital gains, it is unlikely that the gains so offset will be distributed to shareholders since any such distributions may be taxable to shareholders as ordinary income. OTHER TAX INFORMATION. The information above is only a summary of some of the tax consequences generally affecting the funds and their shareholders and no attempt has been made to discuss individual tax consequences. In addition to federal income taxes, shareholders may be subject to state and local taxes on distributions received from the funds. Investors should consult their tax advisors to determine whether the funds are suitable for their particular tax situation. FMR FMR is a wholly owned subsidiary of FMR Corp., a parent company organized in 1972. At present, the principal operating activities of FMR Corp. are those conducted by three of its divisions as follows: FSC, which is the transfer and shareholder servicing agent for certain of the funds advised by FMR; Fidelity Investments Institutional Operations Company, which performs shareholder servicing functions for certain institutional customers; and Fidelity Investments Retail Marketing Company, which provides marketing services to various companies within the Fidelity organization. Several affiliates of FMR are also engaged in the investment advisory business. Fidelity Management Trust Company provides trustee, investment advisory, and administrative services to retirement plans and corporate employee benefit accounts. FMR U.K. and FMR Far East, both wholly owned subsidiaries of FMR formed in 1986, supply investment research information and may supply portfolio management services to FMR in connection with certain funds advised by FMR. Analysts employed by FMR, FMR U.K., and FMR Far East research and visit thousands of domestic and foreign companies each year. F TX , a wholly owned subsidiary of FMR formed in 1989, supplies portfolio management and research services in connection with certain money market funds advised by FMR. TRUSTEES AND OFFICERS The Trustees and executive officers of the trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. All persons named as Trustees also serve in similar capacities for other funds advised by FMR. Unless otherwise noted, the business address of each Trustee and officer is 82 Devonshire Street, Boston, Massachusetts 02109, which is also the address of FMR. Those Trustees who are "interested persons" (as defined in the Investment Company Act of 1940) by virtue of their affiliation with either the trust or FMR, are indicated by an asterisk (*). *EDWARD C. JOHNSON 3d, Trustee and President, is Chairman, Chief Executive Officer and a Director of FMR Corp.; a Director and Chairman of the Board and of the Executive Committee of FMR; Chairman and a Director of FMR Texas Inc. (1989), Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc. *J. GARY BURKHEAD, Trustee and Senior Vice President, is President of FMR; and President and a Director of FMR Texas Inc. (1989), Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc. RALPH F. COX, 200 Rivercrest Drive, Fort Worth, TX, Trustee (1991), is President of Greenhill Petroleum Corporation (petroleum exploration and production, 1990). Prior to his retirement in March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of Bonneville Pacific Corporation (independent power, 1989) and CH2M Hill Companies (engineering). In addition, he served on the Board of Directors of the Norton Company (manufacturer of industrial devices, 1983-1990) and continues to serve on the Board of Directors of the Texas State Chamber of Commerce, and is a member of advisory boards of Texas A&M University and the University of Texas at Austin. PHYLLIS BURKE DAVIS, P.O. Box 264, Bridgehampton, NY, Trustee (1992). Prior to her retirement in September 1991, Mrs. Davis was the Senior Vice President of Corporate Affairs of Avon Products, Inc. She is currently a Director of BellSouth Corporation (telecommunications), Eaton Corporation (manufacturing, 1991), and the TJX Companies, Inc. (retail stores, 1990), and previously served as a Director of Hallmark Cards, Inc. (1985-1991) and Nabisco Brands, Inc. In addition, she serves as a Director of the New York City Chapter of the National Multiple Sclerosis Society, and is a member of the Advisory Council of the International Executive Service Corps. and the President's Advisory Council of The University of Vermont School of Business Administration. RICHARD J. FLYNN, 77 Fiske Hill, Sturbridge, MA, Trustee, is a financial consultant. Prior to September 1986, Mr. Flynn was Vice Chairman and a Director of the Norton Company (manufacturer of industrial devices). He is currently a Director of Mechanics Bank and a Trustee of College of the Holy Cross and Old Sturbridge Village, Inc. E. BRADLEY JONES, 3881-2 Lander Road, Chagrin Falls, OH, Trustee (1990). Prior to his retirement in 1984, Mr. Jones was Chairman and Chief Executive Officer of LTV Steel Company. Prior to May 1990, he was Director of National City Corporation (a bank holding company) and National City Bank of Cleveland. He is a Director of TRW Inc. (original equipment and replacement products), Cleveland-Cliffs Inc (mining), NACCO Industries, Inc. (mining and marketing), Consolidated Rail Corporation, Birmingham Steel Corporation (1988), Hyster-Yale Materials Handling, Inc. (1989), and RPM, Inc. (manufacturer of chemical products, 1990). In addition, he serves as a Trustee of First Union Real Estate Investments, Chairman of the Board of Trustees and a member of the Executive Committee of the Cleveland Clinic Foundation, a Trustee and a member of the Executive Committee of University School (Cleveland), and a Trustee of Cleveland Clinic Florida. DONALD J. KIRK, 680 Steamboat Road, Apartment #1-North, Greenwich, CT, Trustee, is a Professor at Columbia University Graduate School of Business and a financial consultant. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Mr. Kirk is a Director of General Re Corporation (reinsurance) and Valuation Research Corp. (appraisals and valuations, 1993). In addition, he serves as Vice Chairman of the Board of Directors of the National Arts Stabilization Fund and Vice Chairman of the Board of Trustees of the Greenwich Hospital Association. *PETER S. LYNCH, Trustee (1990) is Vice Chairman of FMR (1992). Prior to his retirement on May 31, 1990, he was a Director of FMR (1989) and Executive Vice President of FMR (a position he held until March 31, 1991); Vice President of Fidelity Magellan Fund and FMR Growth Group Leader; and Managing Director of FMR Corp. Mr. Lynch was also Vice President of Fidelity Investments Corporate Services (1991-1992). He is a Director of W.R. Grace & Co. (chemicals, 1989) and Morrison Knudsen Corporation (engineering and construction). In addition, he serves as a Trustee of Boston College, Massachusetts Eye & Ear Infirmary, Historic Deerfield (1989) and Society for the Preservation of New England Antiquities, and as an Overseer of the Museum of Fine Arts of Boston (1990). GERALD C. McDONOUGH, 135 Aspenwood Drive, Cleveland, OH, Trustee (1989), is Chairman of G.M. Management Group (strategic advisory services). Prior to his retirement in July 1988, he was Chairman and Chief Executive Officer of Leaseway Transportation Corp. (physical distribution services). Mr. McDonough is a Director of ACME-Cleveland Corp. (metal working, telecommunications and electronic products), Brush-Wellman Inc. (metal refining), York International Corp. (air conditioning and refrigeration, 1989), Commercial Intertech Corp. (water treatment equipment, 1992), and Associated Estates Realty Corporation (a real estate investment trust, 1993). EDWARD H. MALONE, 5601 Turtle Bay Drive #2104, Naples, FL, Trustee. Prior to his retirement in 1985, Mr. Malone was Chairman, General Electric Investment Corporation and a Vice President of General Electric Company. He is a Director of Allegheny Power Systems, Inc. (electric utility), General Re Corporation (reinsurance) and Mattel Inc. (toy manufacturer). He is also a Trustee of Rensselaer Polytechnic Institute and of Corporate Property Investors and a member of the Advisory Boards of Butler Capital Corporation Funds and Warburg, Pincus Partnership Funds. MARVIN L. MANN, 55 Railroad Avenue, Greenwich, CT, Trustee (1993) is Chairman of the Board, President, and Chief Executive Officer of Lexmark International, Inc. (office machines, 1991). Prior to 1991, he held the positions of Vice President of International Business Machines Corporation ("IBM") and President and General Manager of various IBM divisions and subsidiaries. Mr. Mann is a Director of M.A. Hanna Company (chemicals, 1993) and Infomart (marketing services, 1991), a Trammell Crow Co. In addition, he serves as the Campaign Vice Chairman of the Tri-State United Way (1993) and is a member of the University of Alabama President's Cabinet (1990). THOMAS R. WILLIAMS, 21st Floor, 191 Peachtree Street, N.E., Atlanta, GA, Trustee, is President of The Wales Group, Inc. (management and financial advisory services). Prior to retiring in 1987, Mr. Williams served as Chairman of the Board of First Wachovia Corporation (bank holding company), and Chairman and Chief Executive Officer of The First National Bank of Atlanta and First Atlanta Corporation (bank holding company). He is currently a Director of BellSouth Corporation (telecommunications), ConAgra, Inc. (agricultural products), Fisher Business Systems, Inc. (computer software), Georgia Power Company (electric utility), Gerber Alley & Associates, Inc. (computer software), National Life Insurance Company of Vermont, American Software, Inc. (1989), and AppleSouth, Inc. (restaurants, 1992). GARY L. FRENCH, Treasurer (1991). Prior to becoming Treasurer of the Fidelity funds, Mr. French was Senior Vice President, Fund Accounting - Fidelity Accounting & Custody Services Co. (1991); Vice President, Fund Accounting - Fidelity Accounting & Custody Services Co. (1990); and Senior Vice President, Chief Financial and Operations Officer - Huntington Advisers, Inc. (1985-1990). ARTHUR S. LORING, Secretary, is Senior Vice President and General Counsel of FMR, Vice President-Legal of FMR Corp., and Vice President and Clerk of FDC. ROBERT H. MORRISON, Manager, Security Transactions, is an employee of FMR. THOMAS D. MAHER, Assistant Vice President of Select Money Market Portfolio (1990), is Assistant Vice President of Fidelity's money market funds and Vice President of FMR Texas Inc. (1990). RICHARD A. SPILLANE, Vice President of each equity fund (199_), is Vice President of FMR (199_), and Director of Equity Research. Under a retirement program that became effective on November 1, 1989, Trustees, upon reaching age 72, become eligible to participate in a defined benefit retirement program under which they receive payments during their lifetime from the fund based on their basic trustee fees and length of service. Currently, Messrs. Robert L. Johnson, William R. Spaulding, Bertram H. Witham, and David L. Yunich participate in the program. BENEFICIAL OWNERSHIP. to be added by subsequent amendment MANAGEMENT CONTRACTS The trust employs FMR to furnish investment advisory and other services. There is a separate management contract with FMR with respect to each fund. Under its management contracts with the trust on behalf of each fund, FMR acts as investment adviser and, subject to the supervision of the Board of Trustees, directs the investments of each fund in accordance with its investment objective, policies, and limitations. FMR also provides the funds with all necessary office facilities and personnel for servicing the funds' investments, and compensates all officers of the trust, all Trustees who are "interested persons" of the trust or FMR, and all personnel of the trust or FMR performing services relating to research, statistical, and investment activities. In addition, FMR or its affiliates, subject to the supervision of the Board of Trustees, provide the management and administrative services necessary for the operation of the funds. These services include providing facilities for maintaining the funds' organization; supervising relations with custodians, transfer and pricing agents, accountants, underwriters, and other persons dealing with the funds; preparing all general shareholder communications and conducting shareholder relations; maintaining the funds' records and the registration of the funds' shares under federal and state law; developing management and shareholder services for the funds; and furnishing reports, evaluations, and analyses on a variety of subjects to the Board of Trustees. In addition to the management fees payable to FMR and the fees payable to FSC, each fund pays all of its expenses, without limitation, that are not assumed by those parties. The funds pay for typesetting, printing, and mailing proxy material to shareholders, legal expenses, and the fees of the custodian, auditor, and non-interested Trustees. Although each fund's management contract provides that the funds will pay for typesetting, printing and mailing prospectuses, statements of additional information, notices, and reports to existing shareholders, the trust has entered into a revised transfer agent agreement with FSC, pursuant to which FSC bears the cost of providing these services to existing shareholders. Other expenses paid by the funds include interest, taxes, brokerage commissions, each fund's proportionate share of insurance premiums and Investment Company Institute dues, and the costs of registering shares under federal and state securities laws. The funds are also liable for such nonrecurring expenses as may arise, including costs of any litigation to which the funds may be a party, and any obligation they may have to indemnify the trust's officers and Trustees with respect to litigation. MONEY MARKET FUND. FMR is the money market fund's manager pursuant to a management contract dated March 1, 1994 , which was approved by shareholders on ___________. For the services of FMR under the contract, the fund pays FMR a monthly management fee calculated by adding a basic fee, which consists of a group fee rate and an individual fund fee rate (.03%), to an income-based component of 6% of the fund's gross income in excess of a 5% yield, and multiplying the result by the fund's average net assets. The group fee rate is based on the monthly average net assets of all of the registered investment companies with which FMR has management contracts and is calculated on a cumulative basis pursuant to the graduated fee rate schedule shown on the left of the chart below. On the right, the effective fee rate schedule shows the results of cumulatively applying the annualized rates at varying asset levels. For example, the effective annual fee rate at $___ billion of group net assets--their approximate level for February 29, 1994--was _____%, which is the weighted average of the respective fee rates for each level of group net assets up to _____ billion. AVERAGE GROUP EFFECTIVE GROUP ANNUALIZED NET ANNUAL ASSETS RATE ASSETS FEE RATE 0 - $3 billion .3700% $ 0.5 billion .3700% 3 - 6 .3400 25 .2664 6 - 9 .3100 50 .2188 9 - 12 .2800 75 .1986 12 - 15 .2500 100 .1869 15 - 18 .2200 125 .1793 18 - 21 .2000 150 .1736 21 - 24 .1900 175 .1695 24 - 30 .1800 200 .1658 30 - 36 .1750 225 .1629 36 - 42 .1700 250 .1604 42 - 48 .1650 275 .1583 48 - 66 .1600 300 .1565 66 - 84 .1550 325 .1548 84 - 120 .1500 350 .1533 120 - 174 .1450 174 - 228 .1400 228 - 282 .1375 282 - 336 .1350 Over 336 .1325 Based on the average net assets of funds advised by FMR for February 1994, the basic fee rate would be calculated as follows: GROUP FEE RATE INDIVIDUAL FUND FEE RATE BASIC FEE RATE % + .03% = % One twelfth (1/12) of the basic fee is applied to the fund's average net assets for the current month, giving a dollar amount which is the basic fee for that month. If the fund's gross yield is 5% or less, the basic fee is the total management fee. The income-based component of the proposed fee is added to the basic fee when the fund's yield is greater than 5%. The income-based fee equals 6% of that portion of the fund's gross income that represents a gross yield of more than 5% per year. The maximum income-based component is .24% (annualized) of average net assets, at a fund gross yield of 9%. Gross income for this purpose, includes interest accrued and/or discount earned (including both original issue discount and market discount) on portfolio obligations, less amortization of premium. Realized and unrealized gains and losses, if any, are not included in gross income. The fund's management contract with FMR prior to March 1, 1994 was dated May 1, 1987. For the services of FMR under the contract, the money market fund paid FMR a monthly management fee computed on the basis of the fund's gross income. To the extent that the fund's monthly gross income equalled an annualized yield of 5% or less, FMR received 4% of that amount of the fund's gross income. To the extent that the fund's monthly income exceeded an annualized yield of 5%, FMR received 6% of that excess. For this purpose, gross income includes interest accrued or discount earned (including both original issue and market discount), less amortization of premium. The amount of discount or premium on portfolio instruments is fixed at the time of purchase. Realized and unrealized gains and losses, if any, are not included in gross income. Pursuant to the terms of the contract, limitations we re imposed on the compensation FMR could receive under the above formula. These limitations we re based on the fund's average monthly net assets as follows: Annualized Rate On the first $1.5 billion .50% On the portion in excess of $1.5 to $3.0 billion .45% On the portion in excess of $3.0 billion to $4.5 billion .43% On the portion in excess of $4.5 billion to $6.0 billion .41% On the portion in excess of $6.0 billion .40% SUB-ADVISER. With respect to the money market fund, FMR has entered into a sub-advisory agreement with FMR Texas, dated _____, 1994 pursuant to which FMR Texas has primary responsibility for providing portfolio investment management services to the money market fund. The sub-advisory agreement provides that FMR will pay F TX fees equal to 50% of the management fee payable to FMR under its management contract with the fund. The fees paid to F TX are not reduced by any voluntary or mandatory expense reimbursements that may be in effect from time to time. During the year ended February 28, 1994, the fiscal period May 1, 1992 to February 28, 1993 , and the fiscal year ended April 30, 1992, FMR paid F TX fees of $ _______, $ 286,083, and $673,018, respectively, with respect to the money market fund. EQUITY FUNDS. FMR is each equity fund's manager pursuant to management contracts dated March 1, 1994 . For the services of FMR under the contracts, the funds each pay FMR a monthly management fee composed of the sum of two elements: a group fee rate and an individual fund fee rate. The group fee rate is based on the monthly average net assets of all of the registered investment companies with which FMR has management contracts and is calculated on a cumulative basis pursuant to the graduated schedule shown on the left of the chart below. On the right, the effective annual fee rate shows the results of cumulatively applying the annualized rates to varying asset levels. For example, the effective annual group fee rate at $ ___ billion of group net assets - their approximate level for February 199 4 - was ____ %, which is the weighted average of the respective fee rates for each level of group net assets up to ___ billion. GROUP FEE RATE SCHEDULE* EFFECTIVE ANNUAL FEE RATES
AVERAGE GROUP EFFECTIVE GROUP ANNUALIZED NET ANNUAL ASSETS RATE ASSETS FEE RATE
0 - $ 3 billion .520% $ 0.5 billion .5200% 3 - 6 .490 25 .4238 6 - 9 .460 50 .3823 9 - 12 .430 75 .3626 12 - 15 .400 100 .3512 15 - 18 .385 125 .3430 18 - 21 .370 150 .3371 21 - 24 .360 175 .3325 24 - 30 .350 200 .3284 30 - 36 .345 225 .3253 36 - 42 .340 250 .3223 42 - 48 .335 275 .3198 48 - 66 .325 300 .3175 66 - 84 .320 325 .3153 84 - 102 .315 350 .3133 102 - 138 .310 138 - 174 .305 174 - 228 .300 228 - 282 .295 282 - 336 .290 Over 336 .285
* The rates shown for average group assets in excess of $174 billion were adopted by FMR on a voluntary basis on November 1, 1993 pending shareholder approval of new management contracts reflecting the extended schedule. The extended schedule provides for lower management fees as total assets under management increase and was approved by shareholders on February 16, 1994. The schedule above (minus the breakpoints added November 1, 1993) was voluntarily adopted by FMR on January 1, 1992 pending shareholder approval of new management contracts reflecting the extended schedule. On February 17, 1993, shareholders of the Home Finance Portfolio approved an amended management contract which was effective March 1, 1993, containing the revised group fee rate schedule. Prior to January 1, 1992, the fund's group fee rate was based on a schedule with breakpoints ending at .310% for average group assets in excess of $102 billion. Shareholders voted to adopt the shorter schedule on ____________________. The individual fund fee rate is .30%. Based on the average net assets of funds advised by FMR for February 1994, the annual management fee rate would be calculated as follows: Group Fee Rate Individual Fund Fee Rate Management Fee Rate .___% + .30% = .___% One twelfth (1/12) of this annual management fee rate is then applied to each fund's average net assets for the current month, giving a dollar amount which is the fee for that month. Fees Collected by FMR. The table on page __ provides information about the management fees payable to FMR under the management contracts in effect for the last three fiscal periods. The column entitled "Gross Management Fees" provides the dollar amount of management fees provided for under those contracts. The column entitled "Reimbursements" lists the sum of any fees and other expenses of the fund that FMR effectively assumed by reimbursing the funds for those expenses, as discussed below. Expense reimbursements represent reductions of FMR's revenues from the funds. The column entitled "Net Fees" represents the gross management fees payable to FMR, less the amount of fee and expense reimbursements by FMR during the period. Reimbursement of Expenses. To comply with the California Code of Regulations, FMR will reimburse each fund if and to the extent that a fund's aggregate annual operating expenses exceed specified percentages of its average net assets. In connection with the expense limitation regulations, each fund has received an order which permits excluding from aggregate operating expenses a portion of its transfer and shareholder's servicing agent fees and out-of-pocket expenses. The applicable percentages are 2 1/2% of the first $30 million, 2% of the next $70 million, and 1 1/2% of average net assets in excess of $100 million. When calculating each fund's expenses for purposes of this regulation, a fund may exclude interest, taxes, brokerage commissions, and extraordinary expenses, as well as a portion of its custodian fees attributable to investments in foreign securities. In addition, the fund has agreed to a condition imposed by the State of California which requires certain funds, for purposes of the expense limitation regulations, to include in aggregate operating expenses all expenses incurred in connection with the acquisition, retention, and disposal of gold, including brokerage commissions. Also, FMR voluntarily limits expenses, excluding interest, taxes, brokerage commissions, and extraordinary expenses of each fund to 2 1/2% of average net assets. [INSERT MANAGEMENT FEES TABLE] Foreign Sub-Advisers. On January 1, 1990, FMR entered into sub-advisory agreements with FMR U.K. and FMR Far East pursuant to which FMR U.K. and FMR Far East supply FMR with investment research and recommendations concerning securities on behalf of of the equity funds (excluding the American Gold and Natural Gas Portfolios). Effective April 15, 1993, FMR entered into sub-advisory agreements with FMR U.K. and FMR Far East on behalf of the Natural Gas Portfolio. These agreements are the same as the current sub-advisory agreements for the other equity funds. On _____, 1994, FMR entered into sub-advisory agreements with FMR U.K. and FMR Far East on behalf of the equity funds (except American Gold Portfolio). Pursuant to the sub-advisory agreements, FMR may receive investment advice and research services with respect to companies based outside the U.S. and may grant the sub-advisers investment management authority as well as the authority to buy and sell securities if FMR believes it would be beneficial to the funds. For providing investment advice and research services FMR pays FMR U.K. and FMR Far East fees equal to 110% and 105%, respectively, of FMR U.K.'s and FMR Far East's costs incurred in connection with providing investment advice and research services. For providing investment management and executing portfolio transactions, FMR pays FMR U.K. and FMR Far East 50% of its monthly management fee with respect to the fund's average net assets managed by the sub-adviser on a discretionary basis. The table below shows the fees paid by FMR to FMR U.K. and FMR Far East with respect to certain of the funds for the fiscal year ended February 28, 1994, the fiscal period ended Februar y 28, 1993 and the fiscal year ended April 30, 1992. No fees were paid with respect to funds omitted from this table. FEES PAID BY FMR TO FOREIGN SUB-ADVISERS FUND FEES PAID BY FMR TO FMR U.K. FEES PAID BY FMR TO FMR FAR EAST FISCAL 1994 FISCAL 1993 FISCAL 1992 FISCAL 1994 FISCAL 1993 FISCAL 1992 Air Transportation $ $ $ $ American Gold -- Automotive Biotechnology Multimedia Chemicals Developing Communications Electronics Energy Energy Service Environmental Services Financial Services Food and Agriculture Health Leisure Precious Metals Retailing Software Technology Telecommunications Utilities CONTRACTS WITH COMPANIES AFFILIATED WITH FMR FSC is transfer, dividend disbursing, and shareholders' servicing agent for the funds. Under the trust's contract with FSC, the equity funds pay an annual fee of $63 per basic retail account with a balance of $5,000 or more, $35 per basic retail account with a balance of less than $5,000 and a supplemental activity charge of $5.61 for monetary transactions. The money market fund pays an annual fee of $13.75 per basic retail account with a balance of $5,000 or more, $10 per basic retail account with a balance of less than $5,000 and a supplemental activity charge of $5.61 for monetary transactions . These fees and charges are subject to annual cost escalation based on postal rate changes and changes in wage and price levels as measured by the National Consumer Price Index for Urban Areas. With respect to institutional client master accounts, each fund pays FSC a per-account fee of $95, and monetary transaction charges of $20 or $17.50, depending on the nature of services provided. With respect to certain broker-dealer master accounts, the funds pay FSC a per-account fee of $30 and a charge of $6 for monetary transactions. Fees for certain institutional retirement plan accounts are based on the net assets of all such accounts in each fund. Under the contract, FSC pays out-of-pocket expenses associated with providing transfer agent services. In addition, FSC bears the expense of typesetting, printing, and mailing prospectuses, statements of additional information, and all other reports, notices, and statements to shareholders, with the exception of proxy statements. The table below shows the transfer agent fees, including reimbursement for out-of-pocket expenses, paid to FSC for the fiscal year ended February 28. 1994, the fiscal period May 1, 1992 to February 28, 1993, and the fiscal year ended April 30, 1992. TRANSFER AGENT FEES FISCAL FISCAL FISCAL 1994 1993 1992 ENERGY $ 588,317 $ 778,899 FINANCIAL SERVICES 751,881 543,660 HEALTH CARE 4,978,972 6,339,307 PRECIOUS METALS AND MINERALS 1,003,502 1,604,326 TECHNOLOGY 834,807 1,076,669 UTILITIES 1,335,888 1,695,320 DEFENSE AND AEROSPACE 17,117 37,099 LEISURE 337,467 497,792 BROKERAGE AND INVESTMENT MANAGEMENT 168,092 212,155 CHEMICALS 305,400 321,595 COMPUTERS 318,208 365,299 ELECTRONICS 362,155 247,544 FOOD AND AGRICULTURE 809,112 948,355 SOFTWARE AND COMPUTER SERVICES 846,760 442,252 TELECOMMUNICATIONS 762,528 686,869 AIR TRANSPORTATION 117,931 110,792 AMERICAN GOLD 1,086,255 1,536,749 BIOTECHNOLOGY 5,041,968 6,286,150 ENERGY SERVICE 432,758 571,797 INSURANCE 121,497 36,047 RETAILING 522,518 381,749 HOME FINANCE 848,854 179,087 MONEY MARKET 1,476,509 1,869,920 AUTOMOTIVE 776,705 159,416 MULTIMEDIA 141,067 81,381 MEDICAL DELIVERY 1,142,334 1,474,335 PAPER AND FOREST PRODUCTS 162,052 295,185 REGIONAL BANKS 1,187,398 404,277 INDUSTRIAL EQUIPMENT 64,231 43,790 CONSTRUCTION AND HOUSING 183,446 129,029 INDUSTRIAL MATERIALS 234,240 116,715 TRANSPORTATION 48,712 57,479 ENVIRONMENTAL SERVICES 640,648 1,081,939 CONSUMER PRODUCTS 77,241 56,942 DEVELOPING COMMUNICATIONS 440,744 229,577 NATURAL GAS 199,958 273,635 If a portion of the fund's brokerage commissions had not resulted in payment of certain of these fees, the fund would have paid transfer agent fees of _____________, respectively. The trust's contract with FSC also provides that FSC will perform the calculations necessary to determine each fund's net asset value per share and dividends, and maintain each fund's accounting records. Prior to July 1, 1991, the annual fee for these pricing and bookkeeping services was based on two schedules, one pertaining to each fund's average net assets, and one pertaining to the type and number of transactions each fund made. The fee rates in effect as of July 1, 1991 are based on each fund's average net assets, specifically, .10% for the first $500 million of average net assets and .05% for average net assets in excess of $500 million. The fee is limited to a minimum of $45,000 and a maximum of $750,000 per year. The table below shows the fees paid to FSC for pricing and bookkeeping services, including related out-of-pocket expenses for each fund for fiscal 1994, the fiscal 1993 period, and fiscal 1992. PRICING AND BOOKKEEPING FEES FISCAL FISCAL FISCAL 1994 1993 1992 ENERGY $ 66,546 $ 77,067 FINANCIAL SERVICES 104,535 61,679 HEALTH CARE 553,099 620,889 PRECIOUS METALS AND MINERALS 108,598 151,827 TECHNOLOGY 97,062 110,871 UTILITIES 204,083 202,173 DEFENSE AND AEROSPACE 37,615 44,219 LEISURE 37,900 50,760 BROKERAGE AND INVESTMENT MANAGEMENT 37,712 45,643 CHEMICALS 37,786 45,696 COMPUTERS 41,740 46,388 ELECTRONICS 47,286 48,970 FOOD AND AGRICULTURE 91,812 92,535 SOFTWARE AND COMPUTER SERVICES 99,153 64,998 TELECOMMUNICATIONS 81,440 64,096 AIR TRANSPORTATION 37,638 44,836 AMERICAN GOLD 135,825 152,898 BIOTECHNOLOGY 541,731 588,902 ENERGY SERVICE 45,991 50,706 INSURANCE 37,521 44,529 RETAILING 53,809 51,626 HOME FINANCE 117,281 46,083 MONEY MARKET 70,831 96,341 AUTOMOTIVE 90,154 53,397 BROADCAST AND MEDIA 37,725 45,369 ELECTRIC UTILITIES 37,658 44,797 MEDICAL DELIVERY 109,268 143,364 PAPER AND FOREST PRODUCTS 37,829 50,805 REGIONAL BANKS 165,687 58,483 INDUSTRIAL EQUIPMENT 37,581 44,747 CONSTRUCTION AND HOUSING 37,822 48,196 INDUSTRIAL MATERIALS 37,737 46,057 TRANSPORTATION 37,639 46,165 ENVIRONMENTAL SERVICES 52,744 78,539 CONSUMER PRODUCTS 37,669 45,454 DEVELOPING COMMUNICATIONS 46,374 44,346 FSC also receives fees for administering each fund's securities lending program. Securities lending fees are based on the number and duration of individual securities loans. The table on the next page shows the securities lending fees paid to FSC for fiscal 1994 and the fiscal period ended February 28, 1993. For fiscal 1992 the fees for securities lending are included in the pricing and bookkeeping fees in the table above. SECURITIES LENDING FEES FISCAL 1994 FISCAL 1993 ENERGY $ 632 FINANCIAL SERVICES 28,974 HEALTH CARE 165,457 PRECIOUS METALS AND MINERALS 1,194 UTILITIES 528 ELECTRONICS 399 SOFTWARE AND COMPUTER SERVICES 13,661 TELECOMMUNICATIONS 16,157 AMERICAN GOLD 2,777 BIOTECHNOLOGY 129,715 RETAILING 1,574 MEDICAL DELIVERY 30,881 REGIONAL BANKS 23,970 From December 1, 1987 to November 15, 1989, the fund charged a $25 fee for exchanges among the Select funds (excluding exchanges out of the money market fund and the Select Cash Reserves Account). Out of this $25 exchange fee, $15 was retained by FSC and the remaining $10 was credited to the fund from which the exchange originated and used to offset the fund's transfer agent expenses. During the period May 1, 1989 to November 15, 1989 and the fiscal year ended April 30, 1989 aggregate exchange fees credited to the funds amounted to $792,990 and $1,708,984, respectively. The aggregate exchange fees retained by FSC during the fiscal period ended February 28, 1993 and fiscal years ended April 30, 1992, and 1991 amounted to $2,069,471, $2,009,728, and $1,649,183, respectively. Exchange fees retained by FSC or credited to the funds are not reflected in the table above. Currently, FSC is credited with a $7.50 exchange fee for each exchange from an equity fund, including each exchange from an equity fund to another Fidelity fund. The funds are credited with redemption fees, the amounts of which are based on the length of time shares are held in an equity fund prior to redemption. Each fund has a distribution agreement with FDC, a Massachusetts corporation organized on July 18, 1960. FDC is a broker-dealer registered under the Securities Exchange Act of 1934 and is a member of the National Association of Securities Dealers, Inc. Each fund's distribution agreement calls for FDC to use all reasonable efforts, consistent with its other business, to secure purchasers for shares of each fund, which are continuously offered. Promotional and administrative expenses in connection with the offer and sale of shares are paid by FDC. For the fiscal period ended February 28, 1993 and for fiscal 1992 and 1991, FDC collected, in the aggregate, $1,331,160, $2,651,710, and $3,217,732, respectively, of deferred sales charges from the total value of shares redeemed by shareholders in all funds and from the Select Cash Reserves Account. Beginning on June 15, 1983, the funds' shares were sold subject to a 2% sales charge. On October 12, 1990, the fund's 2% sales charge was increased to 3% and the 1% deferred sales charge was eliminated. FDC received aggregate sales charge revenue for the fiscal period ended February 28, 1993 and for fiscal 1992 and 1991 in amounts of $22,273,836, $37,889,250, and $16,779,270, respectively. DESCRIPTION OF THE TRUST TRUST ORGANIZATION. Fidelity Select Portfolios is an open-end management investment company organized as a Massachusetts business trust on November 20, 1980. Subsequent to the reorganization of certain funds of the trust on October 26, 1990, Automation and Machinery Portfolio, Life Insurance Portfolio, and Restaurant Industry Portfolio no longer exist. Also due to the reorganization, Capital Goods Portfolio was renamed "Industrial Technology Portfolio," and Property and Casualty Insurance Portfolio was renamed "Insurance Portfolio." Subsequent to an additional reorganization on February 25, 1994, Electric Utilities Portfolio no longer exists. On April 25, 1994, Broadcast and Media Portfolio was renamed "Multimedia Portfolio." On February 17, 1993, Savings and Loan Portfolio was renamed "Home Finance Portfolio." On June 29, 1992, Industrial Technology Portfolio was renamed "Industrial Equipment Portfolio." On June 14, 1990, Housing Portfolio was renamed "Construction and Housing Portfolio." On July 10, 1987, Health Care Delivery Portfolio was renamed "Medical Delivery Portfolio." On July 29, 1985, Leisure and Entertainment Portfolio was renamed "Leisure Portfolio." Currently there are thirty-six funds of the trust. The Declaration of Trust permits the Trustees to create additional funds. In the event that FMR cease to be the investment adviser to the trust or a fund, the right of the trust or fund to use the identifying name "Fidelity" may be withdrawn. There is a remote possibility that one fund might become liable for any misstatement in its prospectus or statement of additional information about another fund. The assets of the trust received for the issue or sale of shares of each fund and all income, earnings, profits, and proceeds thereof, subject only to the rights of creditors, are especially allocated to such fund, and constitute the underlying assets of such fund. The underlying assets of each fund are segregated on the books of account, and are to be charged with the liabilities with respect to such fund and with a share of the general expenses of the trust. Expenses with respect to the trust are to be allocated in proportion to the asset value of the respective funds, except where allocations of direct expense can otherwise be fairly made. The officers of the trust, subject to the general supervision of the Board of Trustees, have the power to determine which expenses are allocable to a given fund, or which are general or allocable to all of the funds. In the event of the dissolution or liquidation of the trust, shareholders of each fund are entitled to receive as a class the underlying assets of such fund available for distribution. SHAREHOLDER AND TRUSTEE LIABILITY. The trust is an entity of the type commonly known as "Massachusetts business trust." Under Massachusetts law, shareholders of such a trust may, under certain circumstances, be held personally liable for the obligations of the trust. The Declaration of Trust provides that the trust shall not have any claim against shareholders except for the payment of the purchase price of shares and requires that each agreement, obligation, or instrument entered into or executed by the trust or the Trustees shall include a provision limiting the obligations created thereby to the trust and its assets. The Declaration of Trust also provides that each fund shall, upon request, assume the defense of any claim made against any shareholder for any act or obligation of the fund and satisfy any judgement thereon. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the fund itself would be unable to meet its obligations. FMR believes that, in view of the above, the risk of personal liability to shareholders is remote. The Declaration of Trust further provides that the Trustees, if they have exercised reasonable care, will not be liable for nay neglect or wrongdoing, but nothing in the Declaration of Trust protects Trustees against any liability to which they would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of their office. VOTING RIGHTS. Each fund's capital consists of shares of beneficial interest. As a shareholder, you receive one vote for each dollar value of net asset value per share you own. The shares have no preemptive or conversion rights; the voting and dividend rights, the right of redemption, and the privilege of exchange are described in the Prospectus. share are fully paid and nonasssessable, except as set forth under the heading "Shareholder and trustee liability" above. Shareholder representing 10% or more of the trust or a fund may, as set forth in the Declaration of Trust, call meetings of the trust or a fund for any purpose related to the trust or fund, as the case may be including, in the case of a meeting of the entire trust, the purpose of voting on removal of one or more Trustees. The trust or the fund may be terminated upon the sale of its assets to another open-end management investment company,or upon liquidation and distribution of its assets, if approved by vote of the holders of a majority of the trust or the fund, as determined by the current value of each shareholder's investment in the fund or trust. If not so terminated, the trust and the funds will continue indefinitely. The trust may invest all of its assets in another investment company. CUSTODIAN. Brown Brothers Harriman & Co., 40 Water Street, Boston, Massachusetts, is custodian of the assets of the equity funds. The Bank of New York, 110 Washington Street, New York, New York is custodian of the assets of the money market fund. The custodian is responsible for the safekeeping of the fund's assets and the appointment of subcustodian banks and clearing agencies. The custodian takes no part in determining the investment policies of the funds or in deciding which securities are purchased or sold by the funds. The funds may, however, invest in obligations of the custodian and may purchase securities from or sell securities to the custodian. FMR, its officers and directors, its affiliated companies, and the trust's Trustees may from time to time have transactions with various banks, including banks serving as custodians for certain of the funds advised by FMR. The Boston branch of the equity funds' custodian leases its office space from an affiliate of FMR at a lease payment which, when entered into, was consistent with prevailing market rates. Transactions that have occurred to date include mortgages and personal and general business loans. In the judgment of FMR, the terms and conditions of those transactions were not influenced by existing or potential custodial or other fund relationships. AUDITOR. Price Waterhouse, 160 Federal Street, Boston, Massachusetts, serves as the trust's independent accountant. The auditor examines financial statements for the funds and provides other audit, tax, and related services. FINANCIAL STATEMENTS The funds' Annual Report for the fiscal year ended February 28, 1994 is a separate report supplied with this Statement of Additional Information and is incorporated herein by reference. To Be Updated SELECT PORTFOLIOS MANAGEMENT FEES Fiscal 1993 Fiscal 1992 Fiscal 1991
Gross Reimbursements Gross Reimbursements Gross Reimbursements Management by Net Management by Net Management by Net Fees FMR Fees Fees FMR Fees Fees FMR Fees
Energy $ 416,288 $ -- $ 416,288 $ 508,749 $ -- $ 508,749 $ 668,405 $ -- $ 668,405 Financial Services 638,638 -- 638,638 337,114 -- 337,114 143,222 -- 143,222 Health Care 4,123,675 -- 4,123,675 5,569,078 -- 5,569,078 2,491,241 -- 2,491,241 Precious Metals and Minerals 674,744 -- 674,744 1,025,350 -- 1,025,350 1,193,504 -- 1,193,504 Technology 611,003 -- 611,003 709,494 -- 709,494 627,594 -- 627,594 Utilities 1,288,773 -- 1,288,773 1,405,035 -- 1,405,035 1,018,744 -- 1,018,744 Defense and Aerospace 6,864 76,661 -- 13,086 79,708 -- 13,517 106,456 -- Leisure 209,257 -- 209,257 247,251 -- 247,251 267,006 -- 267,006 Brokerage and Investment 95,887 -- 95,887 116,514 -- 116,514 24,192 91,935 -- Management Chemicals 185,268 -- 185,268 171,330 -- 171,330 123,246 2,902 120,344 Computers 204,894 -- 204,894 178,574 -- 178,574 179,368 -- 179,368 Electronics 250,377 -- 250,377 136,804 -- 136,804 152,301 -- 152,301 Food and Agriculture 576,530 -- 576,530 582,126 -- 582,126 234,307 -- 234,307 Software and Computer Services 607,554 -- 607,554 266,322 -- 266,322 90,399 44,867 45,532 Telecommunications 504,083 -- 504,083 393,527 -- 393,527 392,744 -- 392,744 Air Transportation 59,743 14,656 45,087 45,893 57,520 -- 26,142 103,831 -- American Gold 845,121 -- 845,121 1,044,883 -- 1,044,883 1,264,272 -- 1,264,272 Biotechnology 3,963,575 -- 3,963,575 4,999,395 -- 4,999,395 1,558,805 -- 1,558,805 Energy Service 275,342 -- 275,342 272,314 -- 272,314 594,804 -- 594,804 Home Finance 740,779 -- 740,779 17,259 89,441 -- 37,779 82,954 -- Insurance 66,292 3,264 63,028 243,819 -- 243,819 14,357 122,395 -- Retailing 334,719 -- 334,719 121,491 -- 121,491 52,282 74,297 -- Money Market 572,165 -- 572,165 1,346,034 -- 1,346,034 2,195,222 -- 2,195,222 Automotive 567,565 -- 567,565 107,873 -- 107,873 3,717 109,509 -- Broadcast and Media 73,299 6,172 67,127 36,063 62,779 -- 37,331 102,651 -- Electric Utilities 161,463 -- 161,463 187,116 -- 187,116 145,820 -- 145,820 Medical Delivery 664,439 -- 664,439 946,897 -- 946,897 335,402 -- 335,402 Paper and Forest Products 92,798 -- 92,798 159,393 -- 159,393 31,078 96,209 -- Regional Banks 1,028,328 -- 1,028,328 298,441 -- 298,441 51,250 66,775 -- Construction and Housing 117,233 -- 117,233 20,946 91,040 -- 9,560 121,627 -- Industrial Equipment 32,577 46,631 -- 49,283 90,575 -- 11,493 133,471 -- Industrial Materials 131,822 -- 131,822 56,572 29,837 26,735 15,474 106,640 -- Transportation 23,650 62,581 -- 19,507 89,539 -- 5,988 114,117 -- Environmental Services 330,763 -- 330,763 523,226 -- 523,226 694,679 -- 694,679 Consumer Products 39,378 43,176 -- 26,792 76,900 -- 4,576 111,589 -- Developing Communications 273,728 -- 273,728 113,409 1,359 112,050 19,526 119,671 --
PART C. OTHER INFORMATION Item 24. Financial Statements and Exhibits (a) Not applicable (b) Exhibits: (1) (a) Declaration of Trust dated November 20, 1980, as amended, is incorporated herein by reference to Exhibit 1(b)(1) to the Registration Statement. (b) Supplement to Declaration of Trust, dated as of June 9, 1981, is incorporated herein by reference to Exhibit 1(b)(1)(b) to Pre-Effective Amendment No. 2. (c) Supplement to Declaration of Trust, dated as of May 15, 1987, is incorporated herein by reference to Exhibit 1(c) to Post-Effective Amendment No. 22. (d) Amended and Restated Declaration of Trust, dated as of January 1, 1990, is incorporated herein by reference to Exhibit 1(d) to Post-Effective Amendment No. 33. (2) Not applicable. (3) Not applicable. (4) Not applicable. (5) (a) Management Contracts between Registrant's Air Transportation, American Gold, Automotive, Biotechnology, Broadcast and Media, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing (formerly Housing), Defense and Aerospace, Electron ics, Energy, Energy Service, Financial Services, Food and Agriculture, Health Care, Industrial Materials, Industrial Equip ment (formerly Industrial Technology), Insurance (formerly Property and Casualty Insurance), Leisure, Medical Delivery, Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation and Utilities Portfo lios and Fidelity Management & Research Company, each of which is dated January 1, 1990, are in corporated herein by reference to Exhibit Nos. 5(a)(1-35) to Post-Effective Amendment No. 34. (b) Management Contract dated June 29, 1989 between Registrant's Environmental Services Portfolio and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(b) to Post-Effective Amendment No. 33. (c) Management Contract dated June 14, 1990 between Registrant's Consumer Products Portfolio and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(c) to Post-Effective Amendment No. 36. (d) Management Contract dated June 14, 1990 between Registrant's Developing Communications Portfolio and Fidelity Management & Research Company is incorporated herein by reference to Exhibit 5(d) to Post-Effective Amendment No. 36. (e) Management Contract between Registrant's Home Finance Portfolio (formerly Savings and Loan Portfolio) and Fidelity Management & Research Company, dated March 1, 1993 is incorporated herein by reference to Exhibit 5(e) to Post-Effective Amendment No. 46. (f) Management Contract between Registrant's Natural Gas Portfolio and Fidelity Management & Research Company, dated April 15, 1993 is incorporated herein by reference to Exhibit 5(f) to Post-Effective Amendment No. 46. (g) Sub-Advisory Agreements between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. with respect to each equity Portfolio (except the American Gold Portfolio, Consumer Products Portfolio, Developing Communications Portfolio, and Natural Gas Portfolio), each of which is dated January 1, 1990, are incorporated herein by reference to Exhibit Nos. 5(e)(1-35) to Post-Effective Amendment No 34. (h) Sub-Advisory Agreements between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. with respect to each equity Portfolio (except the American Gold Portfolio, Consumer Products Portfolio, Developing Communications Portfolio, and Natural Gas Portfolio), each of which is dated January 1, 1990, are incorporated herein by reference to Exhibit Nos. 5(f)(1-35) to Post-Effective Amendment No. 34. (i) Sub-Advisory Agreement between Fidelity Management & Research Company and FMR Texas Inc. with respect to the Money Market Portfolio, dated January 1, 1990, is incorporated herein by reference to Exhibit 5(g) to Post-Effective Amendment No. 34. (j) Sub-Advisory Agreements between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc. with respect to the Consumer Products Portfolio and Developing Communications Portfolio, each of which is dated June 14, 1990, are incorporated herein by reference to Exhibit Nos. 5(h)(1-2) to Post-Effective Amendment No. 36. (k) Sub-Advisory Agreements between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc. with respect to the Consumer Products Portfolio and Developing Communications Portfolio, each of which is dated June 14, 1990, are incorporated herein by reference to Exhibit Nos. 5(i)(1-2) to Post-Effective Amendment No. 36. (l) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (U.K.) Inc., with respect to the Natural Gas Portfolio, dated April 15, 1993, is incorporated herein by reference to Exhibit 5(l) to Post-Effective Amendment No. 46. (m) Sub-Advisory Agreement between Fidelity Management & Research Company and Fidelity Management & Research (Far East) Inc., with respect to the Natural Gas Portfolio, dated April 15, 1993, is incorporated herein by reference to Exhibit 5(m) to Post-Effective Amendment No. 46. (6) (a) Distribution Agreements between Registrant's Air Transportation, American Gold, Automotive, Biotechnology, Broadcast and Media, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing (formerly Housing),Defense and Aerospace, Electronics, Energy, Energy Service, Financial Services, Food and Agriculture, Health Care, Home Finance (formerly Savings and Loan), Industrial Materials, Industrial Equipment (formerly Industrial Technology), Insurance (formerly Property and Casualty Insurance), Leisure, Medical Delivery, Money Market, Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation and Utilities Portfolios and Fidelity Distributors Corporation, each of which is dated April 1, 1987, are incorporated herein by reference to Exhibit Nos. 6(a) (1-36) to Post-Effective Amendment No. 23. (b) Amendment to Distribution Agreements between Air Transportation, American Gold, Automotive, Biotechnology, Broadcast and Media, Brokerage and Investment Management, Chemicals, Computers, Construction and Housing (formerly Housing), Defense and Aerospace, Electronics, Energy, Energy Service, Financial Services, Food and Agriculture, Health Care, Home Finanace (formerly Savings and Loan), Industrial Materials, Industrial Equipment (formerly Industrial Technology), Insurance (formerly Property and Casualty Insurance), Leisure, Medical Delivery, Money Market, Paper and Forest Products, Precious Metals and Minerals, Regional Banks, Retailing, Software and Computer Services, Technology, Telecommunications, Transportation and Utilities Portfolios and Fidelity Distributors Corporation, each of which is dated January 1, 1988, is incorporated herein by reference to Exhibit 6(b) to Post-Effective Amendment No. 25. (c) Distribution Agreement between Registrant's Environmental Services Portfolio and Fidelity Distributors Corporation, dated June 29, 1989, is incorporated herein by reference to Exhibit 6(c) to Post-Effective Amendment No. 34. (d) Distribution Agreement between Registrant's Consumer Products Portfolio and Fidelity Distributors Corporation, dated June 14, 1990 is incorporated herein by reference to Exhibit 6(d) to Post-Effective Amendment No. 36. (e) Distribution Agreement between Registrant's Developing Communications Portfolio and Fidelity Distributors Corporation, dated June 14, 1990 is incorporated herein by reference to Exhibit 6(e) to Post-Effective Amendment No. 36. (f) Distribution Agreement between Registrant's Natural Gas Portfolio and Fidelity Distributors Corporation, dated April 15, 1993 is incorporated herein by reference to Exhibit 6(f) to Post-Effective Amendment No. 46. (7) Retirement Plan for Non-Interested Person Trustees, Directors or General Partners, effective November 1, 1989, is incorporated herein by reference to Exhibit 7 to Post-Effective Amendment No. 42. (8) (a) Custodian Contract between Registrant and Brown Brothers Harriman & Co,. on behalf of the equity Portfolios, dated as of July 18, 1991, is incorporated herein by reference to Exhibit 8(a) to Post-Ef fective Amendment No. 41. (b) Custodian Contract between Registrant and Bank of New York, on behalf of Select Money Market Port folio, dated as of July 18, 1991, is incorporated herein by reference to Exhibit 8(b) to Post- Effective Amendment No. 41. (9) (a) Amended Service Agreement between FMR Corp., Fidelity Service Co. and Registrant, dated June 1, 1989, is incorporated herein by reference to Exhibit 9(a) to Post-Effective Amendment No. 32. (b) Schedule A (transfer agent, dividend and distribution disbursing agent, and shareholder servicing agent) to the Amended Agreement, dated June 1, 1989, with respect to the Registrant's equity Portfolios, is incorporated herein by reference to Exhibit 9(b) to Post-Effective Amendment No. 32. (c) Schedule A (transfer agent, dividend and distribution disbursing agent, and shareholder servicing agent) to the Amended Agreement, dated June 1, 1989, with respect to the Registrant's Money Market Portfolio, is incorporated herein by reference to Exhibit 9(c) to Post-Effective Amendment No. 32. (d) Schedule B (agent to perform portfolio pricing and bookkeeping) to the Amended Agreement, dated June 1, 1989, with respect to the Registrant's equity Portfolios, is incorporated herein by reference to Exhibit 9(d) to Post-Effective Amendment No. 32. (e) Schedule B (agent to perform portfolio pricing and bookkeeping) to the Amended Agreement, dated June 1, 1989, with respect to the Registrant's Money Market Portfolio, is incorporated herein by reference to Exhibit 9(e) to Post-Effective Amendment No. 32. (f) Schedule C (agent for securities lending transactions) to the Amended Agreement, dated June 1, 1989, with respect to the Registrant's equity Portfolios, is incorporated herein by reference to Exhibit 9(f) to Post-Effective Amendment No. 32. (g) Schedule C (agent for securities lending transactions) to the Amended Agreement, dated June 1, 1989, with respect to the Registrant's Money Market Portfolio, is incorporated herein by reference to Exhibit 9(g) to Post-Effective Amendment No. 32. (10) Not applicable. (11) Not applicable. (12) Not applicable. (13) Not applicable. (14) (a) Fidelity Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(a) to Post-Effective Amendment No. 38. (b) Fidelity Defined Contribution Retirement Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(b) to Post-Effective Amendment No. 38. (c) Fidelity Defined Benefit Pension Plan and Trust Agreement, as currently in effect, is incorporated herein by reference to Exhibit 14(c) to Post-Effective Amendment No. 38. (d) Fidelity Group Individual Retirement Account Custodial Agreement and Disclosure Statement, as currently in effect, is incorporated herein by reference to Exhibit 14(d) to Post-Effective Amendment No. 38. (e) Fidelity 403(b)(7) Custodial Account Agreement, as currently in effect, is incorporated herein by refer ence to Exhibit 14(e) to Post-Effective Amendment No. 39. (f) Fidelity Master Plan for Savings and Investments, as currently in effect, is incorporated herein by refer ence to Exhibit 14(f) to Post-Effective Amendment No. 39. (g) Fidelity 401(a) Prototype Plan for Tax-Exempt Employers, as currently in effect, is incorporated herein by reference to Exhibit 14(g) to Post-Effective Amendment No. 38. (15) Not applicable. (16) (a) A schedule for computation of performance quotations for each Portfolio then registered was filed as Exhibit 16 to Post-Effective Amendment No. 26. (b) A schedule for computation of performance quotations regarding adjusted net asset value for the equity Portfolios was filed as Exhibit 16(b) to Post-Effective Amendment No. 44. (c) Backup for the computation of a moving average (using Select American Gold Portfolio as an example) was filed as Exhibit 16 (c) to Post-Effective Amendment No. 45. Item 25. Persons Controlled by or under Common Control with Registrant The Board of Trustees of Registrant is the same as the Board of Trustees of other funds advised by FMR, each of which has Fidelity Management & Research Company as its investment adviser. In addition, the officers of these funds are substantially identical. Nonetheless, Registrant takes the position that it is not under common control with these other funds since the power residing in the respective boards and officers arises as the result of an official position with the respective funds. Item 26. Number of Holders of Securities December 31, 1994 Title of Class: Shares of Beneficial Interest Title of Class Number of Record Holders Air Transportation Portfolio 5,611 American Gold Portfolio 50,239 Automotive Portfolio 28,208 Biotechnology Portfolio 120,923 Broadcast and Media Portfolio 17,189 Brokerage and Investment Management Portfolio 15,601 Chemicals Portfolio 7,405 Computers Portfolio 10,887 Construction and Housing Portfolio 7,860 Consumer Products Portfolio 3,037 Defense and Aerospace Portfolio 1,770 Developing Communications Portfolio 35,587 Electronics Portfolio 12,448 Energy Portfolio 26,877 Energy Service Portfolio 19,359 Environmental Services Portfolio 18,768 Financial Services Portfolio 32,320 Food and Agriculture Portfolio 26,117 Health Care Portfolio 111,586 Home Finance Portfolio 44,736 Industrial Equipment Portfolio 12,639 Industrial Materials Portfolio 7,275 Insurance Portfolio 5,643 Leisure Portfolio 16,303 Medical Delivery Portfolio 30,235 Money Market Portfolio 51,320 Natural Gas Portfolio 10,843 Paper and Forest Products Portfolio 6,875 Precious Metals and Minerals Portfolio 62,462 Regional Banks Portfolio 42,481 Retailing Portfolio 16,425 Software and Computer Services Portfolio 34,323 Technology Portfolio 32,127 Telecommunications Portfolio 66,513 Transportation Portfolio 3,005 Utilities Portfolio 41,966 Item 27. Indemnification Article XI, Section 2 of the Declaration of Trust sets forth the reasonable and fair means for determining whether indemnification shall be provided to any past or present Trustee or officer. It states that the Registrant shall indemnify any present or past Trustee or officer to the fullest extent permitted by law against liability and all expenses reasonably incurred by him in connection with any claim, action, suit or proceeding in which he is involved by virtue of his service as a trustee, an officer, or both. Additionally, amounts paid or incurred in settlement of such matters are covered by this indemnification. Indemnification will not be provided in certain circumstances, however. These include instances of willful misfeasance, bad faith, gross negligence, and reckless disregard of the duties involved in the conduct of the particular office involved. Item 28. Business and Other Connections of Investment Adviser (1) FIDELITY MANAGEMENT & RESEARCH COMPANY FMR serves as investment adviser to a number of other investment companies. The directors and officers of the Adviser have held, during the past two fiscal years, the following positions of a substantial nature.
Edward C. Johnson 3d Chairman of the Executive Committee of FMR; President and Chief Executive Officer of FMR Corp.; Chairman of the Board and a Director of FMR, FMR Corp., FMR Texas Inc., Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research (Far East) Inc.; President and Trustee of funds advised by FMR; J. Gary Burkhead President of FMR; Managing Director of FMR Corp.; President and a Director of FMR Texas Inc., Fidelity Management & Research (U.K.) Inc. and Fidelity Management & Research (Far East) Inc.; Senior Vice President and Trustee of funds advised by FMR. Peter S. Lynch Vice Chairman of FMR (1992). David Breazzano Vice President of FMR (1993) and of a fund advised by FMR. Stephan Campbell Vice President of FMR (1993). Rufus C. Cushman, Jr. Vice President of FMR and of funds advised by FMR; Corporate Preferred Group Leader. Will Danoff Vice President of FMR (1993) and of a fund advised by FMR. Scott DeSano Vice President of FMR (1993). Penelope Dobkin Vice President of FMR and of a fund advised by FMR. Larry Domash Vice President of FMR (1993). George Domolky Vice President of FMR (1993) and of a fund advised by FMR. Charles F. Dornbush Senior Vice President of FMR; Chief Financial Officer of the Fidelity funds; Treasurer of FMR Texas Inc., Fidelity Management & Research (U.K.) Inc., and Fidelity Management & Research (Far East) Inc. Robert K. Duby Vice President of FMR. Margaret L. Eagle Vice President of FMR and of a fund advised by FMR. Kathryn L. Eklund Vice President of FMR. Richard B. Fentin Senior Vice President of FMR (1993) and of a fund advised by FMR. Daniel R. Frank Vice President of FMR and of funds advised by FMR. Gary L. French Vice President of FMR and Treasurer of the funds advised by FMR. Prior to assuming the position as Treasurer he was Senior Vice President, Fund Accounting - Fidelity Accounting & Custody Services Co. Michael S. Gray Vice President of FMR and of funds advised by FMR. Barry A. Greenfield Vice President of FMR and of a fund advised by FMR. William J. Hayes Senior Vice President of FMR; Income/Growth Group Leader and International Group Leader. Robert Haber Vice President of FMR and of funds advised by FMR. Daniel Harmetz Vice President of FMR and of a fund advised by FMR. Ellen S. Heller Vice President of FMR.
John Hickling Vice President of FMR (1993) and of funds advised by FMR.
Robert F. Hill Vice President of FMR; and Director of Technical Research. Stephan Jonas Vice President of FMR (1993). David B. Jones Vice President of FMR (1993). Steven Kaye Vice President of FMR (1993) and of a fund advised by FMR. Frank Knox Vice President of FMR (1993). Robert A. Lawrence Senior Vice President of FMR (1993); and High Income Group Leader. Alan Leifer Vice President of FMR and of a fund advised by FMR. Harris Leviton Vice President of FMR (1993) and of a fund advised by FMR. Bradford E. Lewis Vice President of FMR and of funds advised by FMR. Robert H. Morrison Vice President of FMR and Director of Equity Trading. David Murphy Vice President of FMR and of funds advised by FMR. Jacques Perold Vice President of FMR. Brian Posner Vice President of FMR (1993) and of a fund advised by FMR. Anne Punzak Vice President of FMR and of funds advised by FMR. Richard A. Spillane Vice President of FMR and of funds advised by FMR; and Director of Equity Research. Robert E. Stansky Senior Vice President of FMR (1993) and of funds advised by FMR. Thomas Steffanci Senior Vice President of FMR (1993); and Fixed-Income Division Head. Gary L. Swayze Vice President of FMR and of funds advised by FMR; and Tax-Free Fixed-Income Group Leader. Donald Taylor Vice President of FMR (1993) and of funds advised by FMR. Beth F. Terrana Senior Vice President of FMR (1993) and of funds advised by FMR. Joel Tillinghast Vice President of FMR (1993) and of a fund advised by FMR. Robert Tucket Vice President of FMR (1993). George A. Vanderheiden Senior Vice President of FMR; Vice President of funds advised by FMR; and Growth Group Leader. Jeffrey Vinik Senior Vice President of FMR (1993) and of a fund advised by FMR. Guy E. Wickwire Vice President of FMR and of a fund advised by FMR. Arthur S. Loring Senior Vice President (1993), Clerk and General Counsel of FMR; Vice President, Legal of FMR Corp.; and Secretary of funds advised by FMR.
(2) FIDELITY MANAGEMENT & RESEARCH (U.K.) INC. (FMR U.K.) FMR U.K. provides investment advisory services to Fidelity Management & Research Company and Fidelity Management Trust Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman and Director of FMR U.K.; Chairman of the Executive Committee of FMR; Chief Executive Officer of FMR Corp.; Chairman of the Board and a Director of FMR, FMR Corp., FMR Texas Inc., and Fidelity Management & Research (Far East) Inc.; President and Trustee of funds advised by FMR. J. Gary Burkhead President and Director of FMR U.K.; President of FMR; Managing Director of FMR Corp.; President and a Director of FMR Texas Inc. and Fidelity Management & Research (Far East) Inc.; Senior Vice President and Trustee of funds advised by FMR. Richard C. Habermann Senior Vice President of FMR U.K.; Senior Vice President of Fidelity Management & Research (Far East) Inc.; Director of Worldwide Research of FMR. Charles F. Dornbush Treasurer of FMR U.K.; Treasurer of Fidelity Management & Research (Far East) Inc.; Treasurer of FMR Texas Inc., Senior Vice President and Chief Financial Officer of the Fidelity funds. David Weinstein Clerk of FMR U.K.; Clerk of Fidelity Management & Research (Far East) Inc.; Secretary of FMR Texas Inc.
(3) FIDELITY MANAGEMENT & RESEARCH (FAR EAST) INC. (FMR Far East) FMR Far East provides investment advisory services to Fidelity Management & Research Company and Fidelity Management Trust Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman and Director of FMR Far East; Chairman of the Executive Committee of FMR; Chief Executive Officer of FMR Corp.; Chairman of the Board and a Director of FMR, FMR Corp., FMR Texas Inc. and Fidelity Management & Research (U.K.) Inc.; President and Trustee of funds advised by FMR. J. Gary Burkhead President and Director of FMR Far East; President of FMR; Managing Director of FMR Corp.; President and a Director of FMR Texas Inc. and Fidelity Management & Research (U.K.) Inc.; Senior Vice President and Trustee of funds advised by FMR. Richard C. Habermann Senior Vice President of FMR Far East; Senior Vice President of Fidelity Management & Research (U.K.) Inc.; Director of Worldwide Research of FMR. William R. Ebsworth Vice President of FMR Far East. Bill Wilder Vice President of FMR Far East (1993). Charles F. Dornbush Treasurer of FMR Far East; Treasurer of Fidelity Management & Research (U.K.) Inc.; Treasurer of FMR Texas Inc.; Senior Vice President and Chief Financial Officer of the Fidelity funds. David C. Weinstein Clerk of FMR Far East; Clerk of Fidelity Management & Research (U.K.) Inc.; Secretary of FMR Texas Inc.
(4) FMR TEXAS INC. (FMR Texas) FMR Texas provides investment advisory services to Fidelity Management & Research Company. The directors and officers of the Sub-Adviser have held the following positions of a substantial nature during the past two fiscal years.
Edward C. Johnson 3d Chairman and Director of FMR Texas; Chairman of the Executive Committee of FMR; President and Chief Executive Officer of FMR Corp.; Chairman of the Board and a Director of FMR, FMR Corp., Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research (U.K.) Inc.; President and Trustee of funds advised by FMR. J. Gary Burkhead President and Director of FMR Texas; President of FMR; Managing Director of FMR Corp.; President and a Director of Fidelity Management & Research (Far East) Inc. and Fidelity Management & Research (U.K.) Inc.; Senior Vice President and Trustee of funds advised by FMR. Frederic L. Henning Jr. Senior Vice President of FMR Texas; Money Market Group Leader. Leland Baron Vice President of FMR Texas and of funds advised by FMR. Thomas D. Maher Vice President of FMR Texas. Burnell Stehman Vice President of FMR Texas and of funds advised by FMR. John Todd Vice President of FMR Texas and of funds advised by FMR. Sarah H. Zenoble Vice President of FMR Texas and of funds advised by FMR. Charles F. Dornbush Treasurer of FMR Texas; Treasurer of Fidelity Management & Research (U.K.) Inc.; Treasurer of Fidelity Management & Research (Far East) Inc.; Senior Vice President and Chief Financial Officer of the Fidelity funds. David C. Weinstein Secretary of FMR Texas; Clerk of Fidelity Management & Research (U.K.) Inc.; Clerk of Fidelity Management & Research (Far East) Inc.
Item 29. Principal Underwriters (a) Fidelity Distributors Corporation (FDC) acts as distributor for most funds advised by FMR and the following other funds: CrestFunds, Inc. The Victory Funds ARK Funds (b) Name and Principal Positions and Offices Positions and Offices Business Address* With Underwriter With Registrant Edward C. Johnson 3d Director Trustee and President Nita B. Kincaid Director None W. Humphrey Bogart Director None Kurt A. Lange President and Treasurer None William L. Adair Senior Vice President None Thomas W. Littauer Senior Vice President None Arthur S. Loring Vice President and Clerk Secretary * 82 Devonshire Street, Boston, MA (c) Not applicable. Item 30. Location of Accounts and Records All accounts, books, and other documents required to be maintained by Section 31a of the 1940 Act and the Rules promulgated thereunder are maintained by Fidelity Management & Research Company or Fidelity Service Co., 82 Devonshire Street, Boston, MA 02109, or the funds' respective custodian The Bank of New York, 110 Washington Street, New York, N.Y or Brown Brothers Harriman & Co., 40 Water Street, Boston, MA. Item 32. Undertakings The Registrant undertakes for Natural Gas Portfolio: 1) to call a meeting of shareholders for the purpose of voting upon the question of removal of a trustee or trustees, when requested to do so by record holders of not less than 10% of its outstanding shares; and 2) to assist in communications with other shareholders pursuant to Section 16(c)(1) and (2), whenever shareholders meeting the qualifications set forth in Section 16(c) seek the opportunity to communicate with other shareholders with a view toward requesting a meeting. SIGNATURES Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant has duly caused this Post-Effective Amendment No.47 to the Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Boston, and Commonwealth of Massachusetts, on the 14th day of February 1994. FIDELITY SELECT PORTFOLIOS By /s/Edward C. Johnson 3d (dagger) Edward C. Johnson 3d, President Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. (Signature) (Title) (Date)
/s/Edward C. Johnson 3d(dagger) President and Trustee February 14, 1994 Edward C. Johnson 3d (Principal Executive Officer)
/s/Gary L. French Treasurer February 14, 1994 Gary L. French /s/J. Gary Burkhead Trustee February 14, 1994 J. Gary Burkhead /s/Ralph F. Cox * Trustee February 14, 1994 Ralph F. Cox /s/Phyllis Burke Davis * Trustee February 14, 1994 Phyllis Burke Davis /s/Richard J. Flynn * Trustee February 14, 1994 Richard J. Flynn /s/E. Bradley Jones * Trustee February 14, 1994 E. Bradley Jones /s/Donald J. Kirk * Trustee February 14, 1994 Donald J. Kirk /s/Peter S. Lynch * Trustee Februry 14, 1994 Peter S. Lynch /s/Edward H. Malone * Trustee February 14, 1994 Edward H. Malone /s/Gerald C. McDonough* Trustee February 14, 1994 Gerald C. McDonough /s/Thomas R. Williams * Trustee February 14, 1994 Thomas R. Williams (dagger) Signatures affixed by J. Gary Burkhead pursuant to a power of attorney dated October 20, 1993 and filed herewith. * Signature affixed by Robert C. Hacker pursuant to a power of attorney dated October 20, 1993 and filed herewith. POWER OF ATTORNEY We, the undersigned Directors, Trustees or General Partners, as the case may be, of the following investment companies:
Fidelity Advisor Series I Fidelity Institutional Trust Fidelity Advisor Series II Fidelity Investment Trust Fidelity Advisor Series III Fidelity Magellan Fund Fidelity Advisor Series IV Fidelity Massachusetts Municipal Trust Fidelity Advisor Series V Fidelity Money Market Trust Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust Fidelity Advisor Series VII Fidelity Municipal Trust Fidelity Advisor Series VIII Fidelity New York Municipal Trust Fidelity California Municipal Trust Fidelity Puritan Trust Fidelity Capital Trust Fidelity School Street Trust Fidelity Charles Street Trust Fidelity Securities Fund Fidelity Commonwealth Trust Fidelity Select Portfolios Fidelity Congress Street Fund Fidelity Sterling Performance Portfolio, L.P. Fidelity Contrafund Fidelity Summer Street Trust Fidelity Corporate Trust Fidelity Trend Fund Fidelity Court Street Trust Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Destiny Portfolios Fidelity U.S. Investments-Government Securities Fidelity Deutsche Mark Performance Fund, L.P. Portfolio, L.P. Fidelity Union Street Trust Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P. Fidelity Exchange Fund Spartan U.S. Treasury Money Market Fidelity Financial Trust Fund Fidelity Fixed-Income Trust Variable Insurance Products Fund Fidelity Government Securities Fund Variable Insurance Products Fund II Fidelity Hastings Street Trust Fidelity Income Fund
plus any other investment company for which Fidelity Management & Research Company acts as investment adviser and for which the undersigned individuals serve as Board Members (collectively, the "Funds"), hereby severally constitute and appoint Arthur J. Brown, Arthur C. Delibert, Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A. Xupolos, each of them singly, our true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for us and in our names in the appropriate capacities, all Pre-Effective Amendments to any Registration Statements of the Funds, any and all subsequent Post-Effective Amendments to said Registration Statements, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in our names and behalf in connection therewith as said attorneys-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission, hereby ratifying and confirming all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. WITNESS our hands on this twentieth day of October, 1993. /s/Edward C. Johnson 3d /s/Peter S. Lynch Edward C. Johnson 3d Peter S. Lynch /s/J. Gary Burkhead /s/Edward H. Malone J. Gary Burkhead Edward H. Malone /s/Richard J. Flynn /s/Gerald C. McDonough Richard J. Flynn Gerald C. McDonough /s/E. Bradley Jones /s/Thomas R. Williams E. Bradley Jones Thomas R. Williams /s/Donald J. Kirk Donald J. Kirk POWER OF ATTORNEY I, the undersigned President and Director, Trustee or General Partner, as the case may be, of the following investment companies:
Fidelity Advisor Series I Fidelity Institutional Trust Fidelity Advisor Series II Fidelity Investment Trust Fidelity Advisor Series III Fidelity Magellan Fund Fidelity Advisor Series IV Fidelity Massachusetts Municipal Trust Fidelity Advisor Series V Fidelity Money Market Trust Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust Fidelity Advisor Series VII Fidelity Municipal Trust Fidelity Advisor Series VIII Fidelity New York Municipal Trust Fidelity California Municipal Trust Fidelity Puritan Trust Fidelity Capital Trust Fidelity School Street Trust Fidelity Charles Street Trust Fidelity Securities Fund Fidelity Commonwealth Trust Fidelity Select Portfolios Fidelity Congress Street Fund Fidelity Sterling Performance Portfolio, L.P. Fidelity Contrafund Fidelity Summer Street Trust Fidelity Corporate Trust Fidelity Trend Fund Fidelity Court Street Trust Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Destiny Portfolios Fidelity U.S. Investments-Government Securities Fidelity Deutsche Mark Performance Fund, L.P. Portfolio, L.P. Fidelity Union Street Trust Fidelity Devonshire Trust Fidelity Yen Performance Portfolio, L.P. Fidelity Exchange Fund Spartan U.S. Treasury Money Market Fidelity Financial Trust Fund Fidelity Fixed-Income Trust Variable Insurance Products Fund Fidelity Government Securities Fund Variable Insurance Products Fund II Fidelity Hastings Street Trust Fidelity Income Fund
plus any other investment company for which Fidelity Management & Research Company acts as investment adviser and for which the undersigned individual serves as President and Board Member (collectively, the "Funds"), hereby severally constitute and appoint J. Gary Burkhead, my true and lawful attorney-in-fact, with full power of substitution, and with full power to sign for me and in my name in the appropriate capacity, all Pre-Effective Amendments to any Registration Statements of the Funds, any and all subsequent Post-Effective Amendments to said Registration Statements, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and behalf in connection therewith as said attorney-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission. I hereby ratify and confirm all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. WITNESS my hand on the date set forth below. /s/Edward C. Johnson 3d October 20, 1993 Edward C. Johnson 3d POWER OF ATTORNEY I, the undersigned Director, Trustee or General Partner, as the case may be, of the following investment companies:
Fidelity Advisor Series I Fidelity Magellan Fund Fidelity Advisor Series III Fidelity Massachusetts Municipal Trust Fidelity Advisor Series IV Fidelity Money Market Trust Fidelity Advisor Series VI Fidelity Mt. Vernon Street Trust Fidelity Advisor Series VIII Fidelity New York Municipal Trust Fidelity California Municipal Trust Fidelity Puritan Trust Fidelity Capital Trust Fidelity School Street Trust Fidelity Charles Street Trust Fidelity Select Portfolios Fidelity Commonwealth Trust Fidelity Sterling Performance Portfolio, L.P. Fidelity Congress Street Fund Fidelity Summer Street Trust Fidelity Contrafund Fidelity Trend Fund Fidelity Deutsche Mark Performance Fidelity Union Street Trust Portfolio, L.P. Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Devonshire Trust Fidelity U.S. Investments-Government Securities Fidelity Financial Trust Fund, L.P. Fidelity Fixed-Income Trust Fidelity Yen Performance Portfolio, L.P. Fidelity Government Securities Fund Spartan U.S. Treasury Money Market Fidelity Hastings Street Trust Fund Fidelity Income Fund Variable Insurance Products Fund Fidelity Institutional Trust Variable Insurance Products Fund II Fidelity Investment Trust
plus any other investment company for which Fidelity Management & Research Company acts as investment adviser and for which the undersigned individual serves as a Board Member (collectively, the "Funds"), hereby severally constitute and appoint Arthur J. Brown, Arthur C. Delibert, Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A. Xupolos, each of them singly, my true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate capacity, all Pre-Effective Amendments to any Registration Statements of the Funds, any and all subsequent Post-Effective Amendments to said Registration Statements, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission, hereby ratifying and confirming all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. WITNESS my hand on the date set forth below. /s/Ralph F. Cox October 20, 1993 Ralph F. Cox POWER OF ATTORNEY I, the undersigned Director, Trustee or General Partner, as the case may be, of the following investment companies:
Fidelity Advisor Series I Fidelity Investment Trust Fidelity Advisor Series III Fidelity Mt. Vernon Street Trust Fidelity Advisor Series IV Fidelity School Street Trust Fidelity Advisor Series VI Fidelity Select Portfolios Fidelity Advisor Series VIII Fidelity Sterling Performance Portfolio, L.P. Fidelity Beacon Street Trust Fidelity Trend Fund Fidelity Capital Trust Fidelity Union Street Trust Fidelity Commonwealth Trust Fidelity U.S. Investments-Bond Fund, L.P. Fidelity Contrafund Fidelity U.S. Investments-Government Securities Fidelity Deutsche Mark Performance Fund, L.P. Portfolio, L.P. Fidelity Yen Performance Portfolio, L.P. Fidelity Devonshire Trust Spartan U.S. Treasury Money Market Fidelity Financial Trust Fund Fidelity Fixed-Income Trust Variable Insurance Products Fund Fidelity Government Securities Fund Variable Insurance Products Fund II Fidelity Hastings Street Trust Fidelity Institutional Trust
plus any other investment company for which Fidelity Management & Research Company acts as investment adviser and for which the undersigned individual serves as a Board Member (collectively, the "Funds"), hereby severally constitute and appoint Arthur J. Brown, Arthur C. Delibert, Robert C. Hacker, Richard M. Phillips, Dana L. Platt and Stephanie A. Xupolos, each of them singly, my true and lawful attorneys-in-fact, with full power of substitution, and with full power to each of them, to sign for me and in my name in the appropriate capacity, all Pre-Effective Amendments to any Registration Statements of the Funds, any and all subsequent Post-Effective Amendments to said Registration Statements, any Registration Statements on Form N-14, and any supplements or other instruments in connection therewith, and generally to do all such things in my name and behalf in connection therewith as said attorneys-in-fact deem necessary or appropriate, to comply with the provisions of the Securities Act of 1933 and Investment Company Act of 1940, and all related requirements of the Securities and Exchange Commission, hereby ratifying and confirming all that said attorneys-in-fact or their substitutes may do or cause to be done by virtue hereof. WITNESS my hand on the date set forth below. /s/Phyllis Burke Davis October 20, 1993 Phyllis Burke Davis -----END PRIVACY-ENHANCED MESSAGE-----