-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I99IO0o5EQi4SrHzdiiihg3N5Q0l5pkgIvNHhlw4TJlf3QG08YFmpnV+5xhidC7Q sHlFUUrOYM0+KR4az7q96A== 0000320351-00-000008.txt : 20000504 0000320351-00-000008.hdr.sgml : 20000504 ACCESSION NUMBER: 0000320351-00-000008 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20000503 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIDELITY SELECT PORTFOLIOS CENTRAL INDEX KEY: 0000320351 STANDARD INDUSTRIAL CLASSIFICATION: UNKNOWN SIC - 0000 [0000] IRS NUMBER: 042732797 STATE OF INCORPORATION: MA FISCAL YEAR END: 0228 FILING VALUES: FORM TYPE: 497 SEC ACT: SEC FILE NUMBER: 002-69972 FILM NUMBER: 617511 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: MAILZONE ZH1 CITY: BOSTON STATE: MA ZIP: 02109 497 1 Like securities of all mutual funds, these securities have not been approved or disapproved by the Securities and Exchange Commission, and the Securities and Exchange Commission has not determined if this prospectus is accurate or complete. Any representation to the contrary is a criminal offense. FIDELITY(REGISTERED TRADEMARK) SELECT PORTFOLIOS(REGISTERED TRADEMARK) FUND TRADING NUMBER SYMBOL AIR TRANSPORTATION PORTFOLIO 034 FSAIX AUTOMOTIVE PORTFOLIO 502 FSAVX BANKING PORTFOLIO 507 FSRBX BIOTECHNOLOGY PORTFOLIO 042 FBIOX BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO 068 FSLBX BUSINESS SERVICES AND OUTSOURCING PORTFOLIO 353 FBSOX CHEMICALS PORTFOLIO 069 FSCHX COMPUTERS PORTFOLIO 007 FDCPX CONSTRUCTION AND HOUSING PORTFOLIO 511 FSHOX CONSUMER INDUSTRIES PORTFOLIO 517 FSCPX CYCLICAL INDUSTRIES PORTFOLIO 515 FCYIX DEFENSE AND AEROSPACE PORTFOLIO 067 FSDAX DEVELOPING COMMUNICATIONS PORTFOLIO 518 FSDCX ELECTRONICS PORTFOLIO 008 FSELX ENERGY PORTFOLIO 060 FSENX ENERGY SERVICE PORTFOLIO 043 FSESX ENVIRONMENTAL SERVICES PORTFOLIO 516 FSLEX FINANCIAL SERVICES PORTFOLIO 066 FIDSX FOOD AND AGRICULTURE PORTFOLIO 009 FDFAX GOLD PORTFOLIO 041 FSAGX HEALTH CARE PORTFOLIO 063 FSPHX HOME FINANCE PORTFOLIO 098 FSVLX INDUSTRIAL EQUIPMENT PORTFOLIO 510 FSCGX INDUSTRIAL MATERIALS PORTFOLIO 509 FSDPX INSURANCE PORTFOLIO 045 FSPCX LEISURE PORTFOLIO 062 FDLSX MEDICAL DELIVERY PORTFOLIO 505 FSHCX MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO 354 FSMEX MULTIMEDIA PORTFOLIO 503 FBMPX NATURAL GAS PORTFOLIO 513 FSNGX NATURAL RESOURCES PORTFOLIO 514 FNARX PAPER AND FOREST PRODUCTS PORTFOLIO 506 FSPFX RETAILING PORTFOLIO 046 FSRPX SOFTWARE AND COMPUTER SERVICES PORTFOLIO 028 FSCSX TECHNOLOGY PORTFOLIO 064 FSPTX TELECOMMUNICATIONS PORTFOLIO 096 FSTCX TRANSPORTATION PORTFOLIO 512 FSRFX UTILITIES GROWTH PORTFOLIO 065 FSUTX MONEY MARKET PORTFOLIO 085 FSLXX PROSPECTUS APRIL 29, 2000 (FIDELITY_LOGO_GRAPHIC)(registered trademark) 82 DEVONSHIRE STREET, BOSTON, MA 02109 CONTENTS FUND SUMMARY 2 INVESTMENT SUMMARY 19 PERFORMANCE 45 FEE TABLE FUND BASICS 61 INVESTMENT DETAILS 74 VALUING SHARES SHAREHOLDER INFORMATION 75 BUYING AND SELLING SHARES 82 EXCHANGING SHARES 82 ACCOUNT FEATURES AND POLICIES 86 DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS 86 TAX CONSEQUENCES FUND SERVICES 87 FUND MANAGEMENT 90 FUND DISTRIBUTION APPENDIX 91 FINANCIAL HIGHLIGHTS FUND SUMMARY INVESTMENT SUMMARY THE STOCK FUNDS INVESTMENT OBJECTIVE AIR TRANSPORTATION PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES Fidelity Management & Research Company (FMR)'s principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the regional, national, and international movement of passengers, mail, and freight via aircraft. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) AIR TRANSPORTATION INDUSTRY CONCENTRATION. The air transportation industry can be significantly affected by competition within the industry, domestic and foreign economies, government regulation, labor relations, and the price of fuel. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE AUTOMOTIVE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) AUTOMOTIVE INDUSTRY CONCENTRATION. The automotive industry is highly cyclical and can be significantly affected by labor relations and fluctuating component prices. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE BANKING PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) BANKING INDUSTRY CONCENTRATION. The banking industry can be significantly affected by legislation that has reduced the separation between commercial and investment banking businesses, changed the laws governing capitalization requirements and the savings and loan industry, and increased competition. In addition, the banking industry can be significantly affected by changes in general economic conditions and interest rates. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE BIOTECHNOLOGY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the research, development, and manufacture of various biotechnological products, services, and processes. (small solid bullet) Potentially investing in securities of companies that distribute biotechnological and biomedical products and companies that benefit significantly from scientific and technological advances in biotechnology. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) BIOTECHNOLOGY INDUSTRY CONCENTRATION. The biotechnology industry can be significantly affected by patent considerations, intense competition, rapid technological change and obsolescence, and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) BROKERAGE AND INVESTMENT MANAGEMENT INDUSTRY CONCENTRATION. The brokerage and investment management industry can be significantly affected by stock and bond market activity, changes in regulations, brokerage commission structure, and a competitive environment combined with the high operating leverage inherent in companies in this industry. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE BUSINESS SERVICES AND OUTSOURCING PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in providing business-related services to companies and other organizations. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) BUSINESS SERVICES AND OUTSOURCING INDUSTRY CONCENTRATION. The business services and outsourcing industry is subject to continued demand for such services and can be significantly affected by competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE CHEMICALS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the research, development, manufacture or marketing of products or services related to the chemical process industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) CHEMICAL INDUSTRY CONCENTRATION. The chemical industry can be significantly affected by intense competition, product obsolescence, raw materials prices, and government regulation and can be subject to risks associated with the production, handling and disposal of hazardous components. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE COMPUTERS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally 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. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) COMPUTER INDUSTRY CONCENTRATION. The computer industry can be significantly affected by competitive pressures, changing domestic and international demand, research and development costs, and product obsolescence. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE CONSTRUCTION AND HOUSING PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally 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. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) CONSTRUCTION AND HOUSING INDUSTRY CONCENTRATION. The construction and housing industry can be significantly affected by changes in government spending, interest rates, consumer confidence and spending, taxation, demographic patterns, housing starts and the level of new and existing home sales. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE CONSUMER INDUSTRIES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the manufacture and distribution of goods to consumers both domestically and internationally. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) CONSUMER INDUSTRY CONCENTRATION. The consumer industries can be significantly affected by the performance of the overall economy, interest rates, competition, consumer confidence and spending, and changes in demographics and consumer tastes. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE CYCLICAL INDUSTRIES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products or services related to cyclical industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) CYCLICAL INDUSTRY CONCENTRATION. Cyclical industries can be significantly affected by general economic trends, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, and worldwide competition, and can be subject to liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE DEFENSE AND AEROSPACE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the research, manufacture or sale of products or services related to the defense or aerospace industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) DEFENSE AND AEROSPACE INDUSTRY CONCENTRATION. The defense and aerospace industry can be significantly affected by government defense and aerospace regulation and spending policies. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE DEVELOPING COMMUNICATIONS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the development, manufacture or sale of emerging communications services or equipment. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) DEVELOPING COMMUNICATIONS INDUSTRY CONCENTRATION. The developing communications industry can be significantly affected by failure to obtain, or delays in obtaining, financing or regulatory approval, intense competition, product compatibility, consumer preferences, and rapid obsolescence. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE ELECTRONICS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the design, manufacture, or sale of electronic components; equipment vendors to electronic component manufacturers; electronic component distributors; and electronic instruments and electronic systems vendors. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) ELECTRONICS INDUSTRY CONCENTRATION. The electronics industry can be significantly affected by rapid obsolescence, intense competition and global demand. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE ENERGY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged 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. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) ENERGY INDUSTRY CONCENTRATION. The energy industry can be significantly affected by fluctuations in price and supply of energy fuels, energy conservation, the success of exploration projects, and tax and other government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE ENERGY SERVICE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged 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. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) ENERGY SERVICE INDUSTRY CONCENTRATION. The energy service industry can be significantly affected by the supply of and demand for specific products or services, the supply of and demand for oil and gas, the price of oil and gas, exploration and production spending, government regulation, world events, and economic conditions. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE ENVIRONMENTAL SERVICES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the research, development, manufacture or distribution of products, processes or services related to waste management or pollution control. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) ENVIRONMENTAL SERVICES INDUSTRY CONCENTRATION. The environmental services industry can be significantly affected by intense competition and legislation resulting in more strict government regulations and enforcement policies and specific expenditures for cleanup efforts, and can be subject to risks associated with hazardous materials. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE FINANCIAL SERVICES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in providing financial services to consumers and industry. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) FINANCIAL SERVICES INDUSTRY CONCENTRATION. The financial services industries are subject to extensive government regulation, can be subject to relatively rapid change due to increasingly blurred distinctions between service segments, and can be significantly affected by availability and cost of capital funds, changes in interest rates, and price competition. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE FOOD AND AGRICULTURE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) FOOD AND AGRICULTURE INDUSTRY CONCENTRATION. The food and agriculture industry can be significantly affected by demographic and product trends, competitive pricing, food fads, marketing campaigns, environmental factors and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE GOLD PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks and in certain precious metals. (small solid bullet) Investing 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. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in gold-related activities, and in gold bullion or coins. (small solid bullet) Potentially investing in other precious metals, securities indexed to the price of precious metals, and securities of companies that manufacture and distribute precious metal and minerals products (such as jewelry, watches, and metal foil and leaf) and companies that invest in other companies engaged in gold and other precious metal and mineral-related activities. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) GOLD INDUSTRY CONCENTRATION. The gold industry can be significantly affected by international monetary and political developments such as currency devaluations or revaluations, central bank movements, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE HEALTH CARE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) HEALTH CARE INDUSTRY CONCENTRATION. The health care industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could have a significant effect on price and availability, and can be significantly affected by rapid obsolescence and patent expirations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE HOME FINANCE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in investing in real estate, usually through mortgages and other consumer-related loans. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) HOME FINANCE INDUSTRY CONCENTRATION. The home finance industry can be significantly affected by regulatory changes, interest rate movements, home mortgage demand, refinancing activity, and residential delinquency trends. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE INDUSTRIAL EQUIPMENT PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally 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. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) INDUSTRIAL EQUIPMENT INDUSTRY CONCENTRATION. The industrial equipment industry can be significantly affected by overall capital spending levels, economic cycles, technical obsolescence, labor relations, and government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE INDUSTRIAL MATERIALS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the manufacture, mining, processing, or distribution of raw materials and intermediate goods used in the industrial sector. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) INDUSTRIAL MATERIALS INDUSTRY CONCENTRATION. The industrial materials industry can be significantly affected by the level and volatility of commodity prices, the exchange value of the dollar, import controls, worldwide competition, liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE INSURANCE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) INSURANCE INDUSTRY CONCENTRATION. The insurance industry is subject to extensive government regulation and can be significantly affected by interest rates, general economic conditions, and price and marketing competition. Different segments of the industry can be significantly affected by natural disasters, mortality and morbidity rates, and environmental clean-up. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE LEISURE PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) LEISURE INDUSTRY CONCENTRATION. The leisure industry can be significantly affected by changing consumer tastes, intense competition, technological developments and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE MEDICAL DELIVERY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) MEDICAL DELIVERY INDUSTRY CONCENTRATION. The medical delivery industry is subject to extensive government regulation and can be significantly affected by government reimbursement for medical expenses, rising costs of medical products and services, pricing pressure, and an increased emphasis on outpatient services. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in research, development, manufacture, distribution, supply or sale of medical equipment and devices and related technologies. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) MEDICAL EQUIPMENT AND SYSTEMS INDUSTRY CONCENTRATION. The medical equipment and systems industry can be significantly affected by patent considerations, rapid technological change and obsolescence, government regulation, and government reimbursement for medical expenses. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE MULTIMEDIA PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) MULTIMEDIA INDUSTRY CONCENTRATION. The multimedia industry can be significantly affected by the federal deregulation of cable and broadcasting, competitive pressures and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE NATURAL GAS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally 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. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) NATURAL GAS INDUSTRY CONCENTRATION. The natural gas industry is subject to changes in price and supply of energy sources and can be significantly affected by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE NATURAL RESOURCES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks and in certain precious metals. (small solid bullet) Investing primarily in companies that own or develop natural resources, or supply goods and services to such companies. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in owning or developing natural resources, or supplying goods and services to such companies, and in precious metals. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) NATURAL RESOURCES INDUSTRY CONCENTRATION. The natural resources industries can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, and tax and other government regulations. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE PAPER AND FOREST PRODUCTS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally 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. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) PAPER AND FOREST PRODUCTS INDUSTRY CONCENTRATION. The paper and forest products industry can be significantly affected by the health of the economy, worldwide production capacity, and interest rates. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE RETAILING PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in merchandising finished goods and services primarily to individual consumers. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) RETAIL INDUSTRY CONCENTRATION. The retail industry can be significantly affected by consumer confidence and spending, intense competition, and changing consumer tastes. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE SOFTWARE AND COMPUTER SERVICES PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in research, design, production or distribution of products or processes that relate to software or information-based services. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) SOFTWARE AND COMPUTER SERVICES INDUSTRY CONCENTRATION. The software and computer services industry can be significantly affected by competitive pressures, which can lead to aggressive pricing and slower selling cycles. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE TECHNOLOGY PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in offering, using or developing products, processes or services that will provide or will benefit significantly from technological advances and improvements. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) TECHNOLOGY INDUSTRY CONCENTRATION. The technology industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, and competition from new market entrants. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE TELECOMMUNICATIONS PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the development, manufacture, or sale of communications services or communications equipment. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) TELECOMMUNICATIONS INDUSTRY CONCENTRATION. The telecommunications industry is subject to government regulation of rates of return and services that may be offered and can be significantly affected by intense competition. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE TRANSPORTATION PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in providing transportation services or companies principally engaged in the design, manufacture, distribution, or sale of transportation equipment. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) TRANSPORTATION INDUSTRY CONCENTRATION. The transportation industry can be significantly affected by changes in the economy, fuel prices, labor relations, insurance costs and government regulation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. INVESTMENT OBJECTIVE UTILITIES GROWTH PORTFOLIO seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Normally investing primarily in common stocks. (small solid bullet) Normally investing at least 80% of assets in securities of companies principally engaged in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. (small solid bullet) Investing in domestic and foreign issuers. (small solid bullet) Using fundamental analysis of each issuer's financial condition and industry position and market and economic conditions to select investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) STOCK MARKET VOLATILITY. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market or economic developments. Different parts of the market can react differently to these developments. (small solid bullet) FOREIGN EXPOSURE. Foreign markets can be more volatile than the U.S. market due to increased risks of adverse issuer, political, regulatory, market or economic developments and can perform differently from the U.S. market. (small solid bullet) UTILITIES INDUSTRY CONCENTRATION. The utilities industries can be significantly affected by government regulation, financing difficulties, supply and demand of services or fuel, and natural resource conservation. (small solid bullet) ISSUER-SPECIFIC CHANGES. The value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole. The value of securities of smaller issuers can be more volatile than that of larger issuers. In addition, the fund is considered non-diversified and can invest a greater portion of assets in securities of individual issuers than a diversified fund. As a result, changes in the market value of a single issuer could cause greater fluctuations in share price than would occur in a more diversified fund. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. When you sell your shares of the fund, they could be worth more or less than what you paid for them. THE MONEY MARKET FUND INVESTMENT OBJECTIVE MONEY MARKET PORTFOLIO seeks to provide high current income, consistent with preservation of capital and liquidity. PRINCIPAL INVESTMENT STRATEGIES FMR's principal investment strategies include: (small solid bullet) Investing in U.S. dollar-denominated money market securities and repurchase agreements, and entering into reverse repurchase agreements. (small solid bullet) Investing at least 80% of assets in money market instruments. (small solid bullet) Investing more than 25% of total assets in the financial services industry. (small solid bullet) Investing in compliance with industry-standard requirements for money market funds for the quality, maturity and diversification of investments. PRINCIPAL INVESTMENT RISKS The fund is subject to the following principal investment risks: (small solid bullet) INTEREST RATE CHANGES. Interest rate increases can cause the price of a money market security to decrease. (small solid bullet) FOREIGN EXPOSURE. Entities located in foreign countries can be affected by adverse political, regulatory, market or economic developments in those countries. (small solid bullet) FINANCIAL SERVICES EXPOSURE. Changes in government regulation and interest rates and economic downturns can have a significant negative effect on issuers in the financial services sector. (small solid bullet) ISSUER-SPECIFIC CHANGES. A decline in the credit quality of an issuer or the provider of credit support or a maturity-shortening structure for a security can cause the price of a money market security to decrease. An investment in the fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund. PERFORMANCE The following information illustrates the changes in each fund's performance from year to year and compares each stock fund's performance to the performance of a market index and an additional index over various periods of time. Returns are based on past results and are not an indication of future performance. YEAR-BY-YEAR RETURNS The returns in the charts do not include the effect of each fund's front-end sales charge. If the effect of the sales charge were reflected, returns would be lower than those shown.
AIR TRANSPORTATION Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -18.18% 37.06% 6.57% 30.89% -21.74% 59.54% 1.25% 31.14% 6.42% 34.49%
Percentage (%) Row: 1, Col: 1, Value: -18.18 Row: 2, Col: 1, Value: 37.06 Row: 3, Col: 1, Value: 6.57 Row: 4, Col: 1, Value: 30.89 Row: 5, Col: 1, Value: -21.74 Row: 6, Col: 1, Value: 59.54 Row: 7, Col: 1, Value: 1.25 Row: 8, Col: 1, Value: 31.14 Row: 9, Col: 1, Value: 6.42 Row: 10, Col: 1, Value: 34.49 DURING THE PERIODS SHOWN IN THE CHART FOR AIR TRANSPORTATION, THE HIGHEST RETURN FOR A QUARTER WAS 23.90% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -26.72% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR AIR TRANSPORTATION WAS 4.45%.
AUTOMOTIVE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -6.72% 37.33% 41.61% 35.38% -12.75% 13.43% 16.07% 16.78% 4.94% -13.47%
Percentage (%) Row: 1, Col: 1, Value: -6.72 Row: 2, Col: 1, Value: 37.33 Row: 3, Col: 1, Value: 41.61 Row: 4, Col: 1, Value: 35.38 Row: 5, Col: 1, Value: -12.75 Row: 6, Col: 1, Value: 13.43 Row: 7, Col: 1, Value: 16.07 Row: 8, Col: 1, Value: 16.78 Row: 9, Col: 1, Value: 4.94 Row: 10, Col: 1, Value: -13.47 DURING THE PERIODS SHOWN IN THE CHART FOR AUTOMOTIVE, THE HIGHEST RETURN FOR A QUARTER WAS 24.59% (QUARTER ENDED MARCH 31, 1992) AND THE LOWEST RETURN FOR A QUARTER WAS -22.31% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR AUTOMOTIVE WAS 5.17%.
BANKING Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -20.67% 65.79% 48.52% 11.17% 0.22% 46.77% 35.89% 45.56% 11.85% -10.07%
Percentage (%) Row: 1, Col: 1, Value: -20.67 Row: 2, Col: 1, Value: 65.79000000000001 Row: 3, Col: 1, Value: 48.52 Row: 4, Col: 1, Value: 11.17 Row: 5, Col: 1, Value: 0.22 Row: 6, Col: 1, Value: 46.77 Row: 7, Col: 1, Value: 35.89 Row: 8, Col: 1, Value: 45.56 Row: 9, Col: 1, Value: 11.85 Row: 10, Col: 1, Value: -10.07 DURING THE PERIODS SHOWN IN THE CHART FOR BANKING, THE HIGHEST RETURN FOR A QUARTER WAS 22.20% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -25.20% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BANKING WAS -3.59%.
BIOTECHNOLOGY Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 44.35% 99.05% -10.34% 0.70% -18.18% 49.10% 5.61% 15.27% 29.72% 77.77%
Percentage (%) Row: 1, Col: 1, Value: 44.34999999999999 Row: 2, Col: 1, Value: 99.05 Row: 3, Col: 1, Value: -10.34 Row: 4, Col: 1, Value: 0.7000000000000001 Row: 5, Col: 1, Value: -18.18 Row: 6, Col: 1, Value: 49.1 Row: 7, Col: 1, Value: 5.609999999999999 Row: 8, Col: 1, Value: 15.27 Row: 9, Col: 1, Value: 29.72 Row: 10, Col: 1, Value: 77.77 DURING THE PERIODS SHOWN IN THE CHART FOR BIOTECHNOLOGY, THE HIGHEST RETURN FOR A QUARTER WAS 40.70% (QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -19.25% (QUARTER ENDED MARCH 31, 1993). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BIOTECHNOLOGY WAS 12.66%.
BROKERAGE AND INVESTMENT MANAGEMENT Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -16.18% 82.26% 5.12% 49.33% -17.27% 23.59% 39.66% 62.32% 5.67% 30.65%
Percentage (%) Row: 1, Col: 1, Value: -16.18 Row: 2, Col: 1, Value: 82.26000000000001 Row: 3, Col: 1, Value: 5.119999999999999 Row: 4, Col: 1, Value: 49.33 Row: 5, Col: 1, Value: -17.27 Row: 6, Col: 1, Value: 23.59 Row: 7, Col: 1, Value: 39.66 Row: 8, Col: 1, Value: 62.32 Row: 9, Col: 1, Value: 5.67 Row: 10, Col: 1, Value: 30.65 DURING THE PERIODS SHOWN IN THE CHART FOR BROKERAGE AND INVESTMENT MANAGEMENT, THE HIGHEST RETURN FOR A QUARTER WAS 31.28% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -33.12% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BROKERAGE AND INVESTMENT MANAGEMENT WAS 14.84%. BUSINESS SERVICES AND OUTSOURCING Calendar Year 1999 29.39% Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: nil Row: 4, Col: 1, Value: nil Row: 5, Col: 1, Value: nil Row: 6, Col: 1, Value: nil Row: 7, Col: 1, Value: nil Row: 8, Col: 1, Value: nil Row: 9, Col: 1, Value: nil Row: 10, Col: 1, Value: 29.39 DURING THE PERIOD SHOWN IN THE CHART FOR BUSINESS SERVICES AND OUTSOURCING, THE HIGHEST RETURN FOR A QUARTER WAS 20.62% (QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS - -6.99% (QUARTER ENDED SEPTEMBER 30, 1999). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR BUSINESS SERVICES AND OUTSOURCING WAS -10.70%.
CHEMICALS Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -4.13% 38.66% 8.90% 12.76% 14.78% 21.45% 21.52% 16.48% -15.90% 19.19%
Percentage (%) Row: 1, Col: 1, Value: -4.13 Row: 2, Col: 1, Value: 38.66 Row: 3, Col: 1, Value: 8.9 Row: 4, Col: 1, Value: 12.76 Row: 5, Col: 1, Value: 14.78 Row: 6, Col: 1, Value: 21.45 Row: 7, Col: 1, Value: 21.52 Row: 8, Col: 1, Value: 16.48 Row: 9, Col: 1, Value: -15.9 Row: 10, Col: 1, Value: 19.19 DURING THE PERIODS SHOWN IN THE CHART FOR CHEMICALS, THE HIGHEST RETURN FOR A QUARTER WAS 17.65% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -19.95% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CHEMICALS WAS -2.95%.
COMPUTERS Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 18.41% 30.75% 21.96% 28.87% 20.45% 51.83% 31.62% 0.10% 96.37% 81.10%
Percentage (%) Row: 1, Col: 1, Value: 18.41 Row: 2, Col: 1, Value: 30.75 Row: 3, Col: 1, Value: 21.96 Row: 4, Col: 1, Value: 28.87 Row: 5, Col: 1, Value: 20.45 Row: 6, Col: 1, Value: 51.83 Row: 7, Col: 1, Value: 31.62 Row: 8, Col: 1, Value: 0.1 Row: 9, Col: 1, Value: 96.36999999999999 Row: 10, Col: 1, Value: 81.09999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR COMPUTERS, THE HIGHEST RETURN FOR A QUARTER WAS 41.69% (QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -27.00% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR COMPUTERS WAS 24.38%.
CONSTRUCTION AND HOUSING Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -9.64% 41.31% 18.71% 33.61% -15.94% 28.78% 13.21% 29.83% 22.84% -12.45%
Percentage (%) Row: 1, Col: 1, Value: -9.639999999999999 Row: 2, Col: 1, Value: 41.31 Row: 3, Col: 1, Value: 18.71 Row: 4, Col: 1, Value: 33.61 Row: 5, Col: 1, Value: -15.94 Row: 6, Col: 1, Value: 28.78 Row: 7, Col: 1, Value: 13.21 Row: 8, Col: 1, Value: 29.83 Row: 9, Col: 1, Value: 22.84 Row: 10, Col: 1, Value: -12.45 DURING THE PERIODS SHOWN IN THE CHART FOR CONSTRUCTION AND HOUSING, THE HIGHEST RETURN FOR A QUARTER WAS 29.68% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -25.81% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CONSTRUCTION AND HOUSING WAS -4.51%.
CONSUMER INDUSTRIES Calendar Years 1991 1992 1993 1994 1995 1996 1997 1998 1999 38.53% 8.56% 24.67% -7.07% 28.30% 13.15% 38.06% 27.49% 10.14%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: 38.53 Row: 3, Col: 1, Value: 8.560000000000001 Row: 4, Col: 1, Value: 24.67 Row: 5, Col: 1, Value: -7.07 Row: 6, Col: 1, Value: 28.3 Row: 7, Col: 1, Value: 13.15 Row: 8, Col: 1, Value: 38.06 Row: 9, Col: 1, Value: 27.49 Row: 10, Col: 1, Value: 10.14 DURING THE PERIODS SHOWN IN THE CHART FOR CONSUMER INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS 27.07% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -15.37% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CONSUMER INDUSTRIES WAS -7.41%. CYCLICAL INDUSTRIES Calendar Years 1998 1999 8.77% 13.05% Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: nil Row: 4, Col: 1, Value: nil Row: 5, Col: 1, Value: nil Row: 6, Col: 1, Value: nil Row: 7, Col: 1, Value: nil Row: 8, Col: 1, Value: nil Row: 9, Col: 1, Value: 8.77 Row: 10, Col: 1, Value: 13.05 DURING THE PERIODS SHOWN IN THE CHART FOR CYCLICAL INDUSTRIES, THE HIGHEST RETURN FOR A QUARTER WAS 17.39% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -19.87% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR CYCLICAL INDUSTRIES WAS -1.49%.
DEFENSE AND AEROSPACE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -4.58% 26.93% 0.00% 28.86% 1.76% 47.36% 25.03% 23.57% 4.34% 11.83%
Percentage (%) Row: 1, Col: 1, Value: -4.58 Row: 2, Col: 1, Value: 26.93 Row: 3, Col: 1, Value: 0.0 Row: 4, Col: 1, Value: 28.86 Row: 5, Col: 1, Value: 1.76 Row: 6, Col: 1, Value: 47.36 Row: 7, Col: 1, Value: 25.03 Row: 8, Col: 1, Value: 23.57 Row: 9, Col: 1, Value: 4.34 Row: 10, Col: 1, Value: 11.83 DURING THE PERIODS SHOWN IN THE CHART FOR DEFENSE AND AEROSPACE, THE HIGHEST RETURN FOR A QUARTER WAS 23.08% (QUARTER ENDED SEPTEMBER 30, 1997) AND THE LOWEST RETURN FOR A QUARTER WAS -18.25% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR DEFENSE AND AEROSPACE WAS 4.42%.
DEVELOPING COMMUNICATIONS Calendar Years 1991 1992 1993 1994 1995 1996 1997 1998 1999 61.39% 17.21% 31.77% 15.14% 17.37% 14.55% 6.04% 67.68% 122.50%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: 61.39 Row: 3, Col: 1, Value: 17.21 Row: 4, Col: 1, Value: 31.77 Row: 5, Col: 1, Value: 15.14 Row: 6, Col: 1, Value: 17.37 Row: 7, Col: 1, Value: 14.55 Row: 8, Col: 1, Value: 6.04 Row: 9, Col: 1, Value: 67.67999999999999 Row: 10, Col: 1, Value: 122.5 DURING THE PERIODS SHOWN IN THE CHART FOR DEVELOPING COMMUNICATIONS, THE HIGHEST RETURN FOR A QUARTER WAS 63.51%(QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -15.48% (QUARTER ENDED MARCH 31, 1997). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR DEVELOPING COMMUNICATIONS WAS 26.81%.
ELECTRONICS Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 5.81% 35.29% 27.44% 32.08% 17.17% 68.97% 41.72% 13.72% 51.12% 106.68%
Percentage (%) Row: 1, Col: 1, Value: 5.81 Row: 2, Col: 1, Value: 35.29000000000001 Row: 3, Col: 1, Value: 27.44 Row: 4, Col: 1, Value: 32.08 Row: 5, Col: 1, Value: 17.17 Row: 6, Col: 1, Value: 68.97 Row: 7, Col: 1, Value: 41.72000000000001 Row: 8, Col: 1, Value: 13.72 Row: 9, Col: 1, Value: 51.12000000000001 Row: 10, Col: 1, Value: 106.68 DURING THE PERIODS SHOWN IN THE CHART FOR ELECTRONICS, THE HIGHEST RETURN FOR A QUARTER WAS 56.77% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -31.76% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ELECTRONICS WAS 42.11%.
ENERGY Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -4.49% 0.04% -2.39% 19.15% 0.41% 21.38% 32.47% 10.28% -14.74% 34.23%
Percentage (%) Row: 1, Col: 1, Value: -4.49 Row: 2, Col: 1, Value: 0.04000000000000001 Row: 3, Col: 1, Value: -2.39 Row: 4, Col: 1, Value: 19.15 Row: 5, Col: 1, Value: 0.41 Row: 6, Col: 1, Value: 21.38 Row: 7, Col: 1, Value: 32.47 Row: 8, Col: 1, Value: 10.28 Row: 9, Col: 1, Value: -14.74 Row: 10, Col: 1, Value: 34.23 DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY, THE HIGHEST RETURN FOR A QUARTER WAS 20.65% (QUARTER ENDED JUNE 30, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -11.75% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ENERGY WAS 14.99%.
ENERGY SERVICE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 1.75% -23.48% 3.43% 20.96% 0.57% 40.87% 49.08% 51.87% -49.72% 72.15%
Percentage (%) Row: 1, Col: 1, Value: 1.75 Row: 2, Col: 1, Value: -23.48 Row: 3, Col: 1, Value: 3.43 Row: 4, Col: 1, Value: 20.96 Row: 5, Col: 1, Value: 0.5700000000000001 Row: 6, Col: 1, Value: 40.87 Row: 7, Col: 1, Value: 49.08 Row: 8, Col: 1, Value: 51.87 Row: 9, Col: 1, Value: -49.72000000000001 Row: 10, Col: 1, Value: 72.14999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR ENERGY SERVICE, THE HIGHEST RETURN FOR A QUARTER WAS 36.86% (QUARTER ENDED SEPTEMBER 30, 1997) AND THE LOWEST RETURN FOR A QUARTER WAS -34.78% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ENERGY SERVICE WAS 35.97%.
ENVIRONMENTAL SERVICES Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -2.48% 7.66% -1.37% -0.62% -9.55% 26.13% 15.61% 17.87% -16.96% -25.85%
Percentage (%) Row: 1, Col: 1, Value: -2.48 Row: 2, Col: 1, Value: 7.659999999999999 Row: 3, Col: 1, Value: -1.37 Row: 4, Col: 1, Value: -0.6200000000000001 Row: 5, Col: 1, Value: -9.550000000000001 Row: 6, Col: 1, Value: 26.13 Row: 7, Col: 1, Value: 15.61 Row: 8, Col: 1, Value: 17.87 Row: 9, Col: 1, Value: -16.96 Row: 10, Col: 1, Value: -25.85 DURING THE PERIODS SHOWN IN THE CHART FOR ENVIRONMENTAL SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 21.53% (QUARTER ENDED JUNE 30, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -30.60% (QUARTER ENDED SEPTEMBER 30, 1999). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR ENVIRONMENTAL SERVICES WAS -0.49%.
FINANCIAL SERVICES Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -24.33% 61.63% 42.82% 17.55% -3.65% 47.34% 32.12% 41.98% 14.13% 1.56%
Percentage (%) Row: 1, Col: 1, Value: -24.33 Row: 2, Col: 1, Value: 61.63 Row: 3, Col: 1, Value: 42.82 Row: 4, Col: 1, Value: 17.55 Row: 5, Col: 1, Value: -3.65 Row: 6, Col: 1, Value: 47.34 Row: 7, Col: 1, Value: 32.12000000000001 Row: 8, Col: 1, Value: 41.98 Row: 9, Col: 1, Value: 14.13 Row: 10, Col: 1, Value: 1.56 DURING THE PERIODS SHOWN IN THE CHART FOR FINANCIAL SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 27.43% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -29.89% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR FINANCIAL SERVICES WAS -0.50%.
FOOD AND AGRICULTURE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 9.33% 34.09% 6.03% 8.82% 6.09% 36.64% 13.35% 30.34% 15.69% -20.47%
Percentage (%) Row: 1, Col: 1, Value: 9.33 Row: 2, Col: 1, Value: 34.09 Row: 3, Col: 1, Value: 6.03 Row: 4, Col: 1, Value: 8.82 Row: 5, Col: 1, Value: 6.09 Row: 6, Col: 1, Value: 36.64 Row: 7, Col: 1, Value: 13.35 Row: 8, Col: 1, Value: 30.34 Row: 9, Col: 1, Value: 15.69 Row: 10, Col: 1, Value: -20.47 DURING THE PERIODS SHOWN IN THE CHART FOR FOOD AND AGRICULTURE, THE HIGHEST RETURN FOR A QUARTER WAS 16.88% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -10.29% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR FOOD AND AGRICULTURE WAS -4.79%.
GOLD Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -17.20% -6.14% -3.09% 78.68% -15.46% 11.20% 19.92% -39.39% -8.64% 8.36%
Percentage (%) Row: 1, Col: 1, Value: -17.2 Row: 2, Col: 1, Value: -6.14 Row: 3, Col: 1, Value: -3.09 Row: 4, Col: 1, Value: 78.67999999999999 Row: 5, Col: 1, Value: -15.46 Row: 6, Col: 1, Value: 11.2 Row: 7, Col: 1, Value: 19.92 Row: 8, Col: 1, Value: -39.39 Row: 9, Col: 1, Value: -8.639999999999999 Row: 10, Col: 1, Value: 8.360000000000001 DURING THE PERIODS SHOWN IN THE CHART FOR GOLD, THE HIGHEST RETURN FOR A QUARTER WAS 32.47% (QUARTER ENDED JUNE 30, 1993) AND THE LOWEST RETURN FOR A QUARTER WAS -32.11% (QUARTER ENDED DECEMBER 31, 1997). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR GOLD WAS -15.56%.
HEALTH CARE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 24.32% 83.69% -17.43% 2.42% 21.46% 45.86% 15.46% 31.15% 41.28% -2.88%
Percentage (%) Row: 1, Col: 1, Value: 24.32 Row: 2, Col: 1, Value: 83.69 Row: 3, Col: 1, Value: -17.43 Row: 4, Col: 1, Value: 2.42 Row: 5, Col: 1, Value: 21.46 Row: 6, Col: 1, Value: 45.86 Row: 7, Col: 1, Value: 15.46 Row: 8, Col: 1, Value: 31.15 Row: 9, Col: 1, Value: 41.28 Row: 10, Col: 1, Value: -2.88 DURING THE PERIODS SHOWN IN THE CHART FOR HEALTH CARE, THE HIGHEST RETURN FOR A QUARTER WAS 34.45% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -13.15% (QUARTER ENDED MARCH 31, 1992). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR HEALTH CARE WAS 3.29%.
HOME FINANCE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -15.08% 64.61% 57.85% 27.29% 2.68% 53.49% 36.88% 45.75% -14.81% -12.37%
Percentage (%) Row: 1, Col: 1, Value: -15.08 Row: 2, Col: 1, Value: 64.61 Row: 3, Col: 1, Value: 57.84999999999999 Row: 4, Col: 1, Value: 27.29 Row: 5, Col: 1, Value: 2.68 Row: 6, Col: 1, Value: 53.49 Row: 7, Col: 1, Value: 36.88 Row: 8, Col: 1, Value: 45.75 Row: 9, Col: 1, Value: -14.81 Row: 10, Col: 1, Value: -12.37 DURING THE PERIODS SHOWN IN THE CHART FOR HOME FINANCE, THE HIGHEST RETURN FOR A QUARTER WAS 30.19% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -25.76% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR HOME FINANCE WAS - -5.34%.
INDUSTRIAL EQUIPMENT Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -15.51% 26.84% 11.34% 43.33% 3.13% 27.81% 26.71% 18.55% 12.67% 17.39%
Percentage (%) Row: 1, Col: 1, Value: -15.51 Row: 2, Col: 1, Value: 26.84 Row: 3, Col: 1, Value: 11.34 Row: 4, Col: 1, Value: 43.33 Row: 5, Col: 1, Value: 3.13 Row: 6, Col: 1, Value: 27.81 Row: 7, Col: 1, Value: 26.71 Row: 8, Col: 1, Value: 18.55 Row: 9, Col: 1, Value: 12.67 Row: 10, Col: 1, Value: 17.39 DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL EQUIPMENT, THE HIGHEST RETURN FOR A QUARTER WAS 20.08% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -29.18% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR INDUSTRIAL EQUIPMENT WAS 5.35%.
INDUSTRIAL MATERIALS Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -17.17% 35.81% 12.37% 21.38% 8.19% 15.39% 14.01% 1.75% -11.02% 16.48%
Percentage (%) Row: 1, Col: 1, Value: -17.17 Row: 2, Col: 1, Value: 35.81 Row: 3, Col: 1, Value: 12.37 Row: 4, Col: 1, Value: 21.38 Row: 5, Col: 1, Value: 8.19 Row: 6, Col: 1, Value: 15.39 Row: 7, Col: 1, Value: 14.01 Row: 8, Col: 1, Value: 1.75 Row: 9, Col: 1, Value: -11.02 Row: 10, Col: 1, Value: 16.48 DURING THE PERIODS SHOWN IN THE CHART FOR INDUSTRIAL MATERIALS, THE HIGHEST RETURN FOR A QUARTER WAS 16.65% (QUARTER ENDED JUNE 30, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -21.26% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR INDUSTRIAL MATERIALS WAS -11.35%.
INSURANCE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -9.81% 36.68% 22.50% 8.18% -0.35% 34.81% 23.71% 42.47% 20.32% -5.95%
Percentage (%) Row: 1, Col: 1, Value: -9.810000000000001 Row: 2, Col: 1, Value: 36.68 Row: 3, Col: 1, Value: 22.5 Row: 4, Col: 1, Value: 8.18 Row: 5, Col: 1, Value: -0.35 Row: 6, Col: 1, Value: 34.81 Row: 7, Col: 1, Value: 23.71 Row: 8, Col: 1, Value: 42.47 Row: 9, Col: 1, Value: 20.32 Row: 10, Col: 1, Value: -5.95 DURING THE PERIODS SHOWN IN THE CHART FOR INSURANCE, THE HIGHEST RETURN FOR A QUARTER WAS 23.68% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -19.37% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR INSURANCE WAS -0.67%.
LEISURE Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -22.29% 32.94% 16.23% 39.55% -6.84% 26.96% 13.41% 41.29% 37.92% 32.83%
Percentage (%) Row: 1, Col: 1, Value: -22.29 Row: 2, Col: 1, Value: 32.94 Row: 3, Col: 1, Value: 16.23 Row: 4, Col: 1, Value: 39.55 Row: 5, Col: 1, Value: -6.84 Row: 6, Col: 1, Value: 26.96 Row: 7, Col: 1, Value: 13.41 Row: 8, Col: 1, Value: 41.29000000000001 Row: 9, Col: 1, Value: 37.92 Row: 10, Col: 1, Value: 32.83 DURING THE PERIODS SHOWN IN THE CHART FOR LEISURE, THE HIGHEST RETURN FOR A QUARTER WAS 32.19% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -22.70% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR LEISURE WAS -1.65%.
MEDICAL DELIVERY Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 16.26% 77.83% -13.19% 5.52% 19.84% 32.18% 11.00% 20.14% -6.16% -29.59%
Percentage (%) Row: 1, Col: 1, Value: 16.26 Row: 2, Col: 1, Value: 77.83 Row: 3, Col: 1, Value: -13.19 Row: 4, Col: 1, Value: 5.52 Row: 5, Col: 1, Value: 19.84 Row: 6, Col: 1, Value: 32.18 Row: 7, Col: 1, Value: 11.0 Row: 8, Col: 1, Value: 20.14 Row: 9, Col: 1, Value: -6.159999999999999 Row: 10, Col: 1, Value: -29.59 DURING THE PERIODS SHOWN IN THE CHART FOR MEDICAL DELIVERY, THE HIGHEST RETURN FOR A QUARTER WAS 41.61% (QUARTER ENDED MARCH 31, 1991) AND THE LOWEST RETURN FOR A QUARTER WAS -26.26% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MEDICAL DELIVERY WAS - -6.33%.
MEDICAL EQUIPMENT AND SYSTEMS Calendar Year 1999 10.72%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: nil Row: 4, Col: 1, Value: nil Row: 5, Col: 1, Value: nil Row: 6, Col: 1, Value: nil Row: 7, Col: 1, Value: nil Row: 8, Col: 1, Value: nil Row: 9, Col: 1, Value: nil Row: 10, Col: 1, Value: 10.72 DURING THE PERIOD SHOWN IN THE CHART FOR MEDICAL EQUIPMENT AND SYSTEMS, THE HIGHEST RETURN FOR A QUARTER WAS 11.16% (QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -6.54% (QUARTER ENDED SEPTEMBER 30, 1999). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MEDICAL EQUIPMENT AND SYSTEMS WAS 13.57%.
MULTIMEDIA Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -26.21% 37.85% 21.50% 38.02% 4.00% 33.67% 1.07% 30.93% 35.69% 44.14%
Percentage (%) Row: 1, Col: 1, Value: -26.21 Row: 2, Col: 1, Value: 37.84999999999999 Row: 3, Col: 1, Value: 21.5 Row: 4, Col: 1, Value: 38.02 Row: 5, Col: 1, Value: 4.0 Row: 6, Col: 1, Value: 33.67 Row: 7, Col: 1, Value: 1.07 Row: 8, Col: 1, Value: 30.93 Row: 9, Col: 1, Value: 35.69000000000001 Row: 10, Col: 1, Value: 44.14 DURING THE PERIODS SHOWN IN THE CHART FOR MULTIMEDIA, THE HIGHEST RETURN FOR A QUARTER WAS 27.35% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -24.82% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MULTIMEDIA WAS - -0.02%.
NATURAL GAS Calendar Years 1994 1995 1996 1997 1998 1999 -6.84% 30.38% 34.32% -8.06% -12.40% 26.19%
Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: nil Row: 4, Col: 1, Value: nil Row: 5, Col: 1, Value: -6.84 Row: 6, Col: 1, Value: 30.38 Row: 7, Col: 1, Value: 34.32 Row: 8, Col: 1, Value: -8.060000000000001 Row: 9, Col: 1, Value: -12.4 Row: 10, Col: 1, Value: 26.19 DURING THE PERIODS SHOWN IN THE CHART FOR NATURAL GAS, THE HIGHEST RETURN FOR A QUARTER WAS 19.83% (QUARTER ENDED JUNE 30, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -16.04% (QUARTER ENDED MARCH 31, 1997). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR NATURAL GAS WAS 22.38%. NATURAL RESOURCES Calendar Years 1998 1999 -16.57% 38.80% Percentage (%) Row: 1, Col: 1, Value: nil Row: 2, Col: 1, Value: nil Row: 3, Col: 1, Value: nil Row: 4, Col: 1, Value: nil Row: 5, Col: 1, Value: nil Row: 6, Col: 1, Value: nil Row: 7, Col: 1, Value: nil Row: 8, Col: 1, Value: nil Row: 9, Col: 1, Value: -16.57 Row: 10, Col: 1, Value: 38.8 DURING THE PERIODS SHOWN IN THE CHART FOR NATURAL RESOURCES, THE HIGHEST RETURN FOR A QUARTER WAS 19.96% (QUARTER ENDED JUNE 30, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -11.34% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR NATURAL RESOURCES WAS 12.31%.
PAPER AND FOREST PRODUCTS Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -15.11% 34.77% 12.05% 18.55% 14.14% 21.91% 7.07% 9.35% -7.89% 30.51%
Percentage (%) Row: 1, Col: 1, Value: -15.11 Row: 2, Col: 1, Value: 34.77 Row: 3, Col: 1, Value: 12.05 Row: 4, Col: 1, Value: 18.55 Row: 5, Col: 1, Value: 14.14 Row: 6, Col: 1, Value: 21.91 Row: 7, Col: 1, Value: 7.07 Row: 8, Col: 1, Value: 9.350000000000001 Row: 9, Col: 1, Value: -7.89 Row: 10, Col: 1, Value: 30.51 DURING THE PERIODS SHOWN IN THE CHART FOR PAPER AND FOREST PRODUCTS, THE HIGHEST RETURN FOR A QUARTER WAS 22.74% (QUARTER ENDED SEPTEMBER 30, 1994) AND THE LOWEST RETURN FOR A QUARTER WAS -21.04% (QUARTER ENDED SEPTEMBER 30, 1998). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR PAPER AND FOREST PRODUCTS WAS -3.88%.
RETAILING Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -5.03% 68.13% 22.08% 13.03% -5.01% 11.98% 20.86% 41.73% 45.76% 5.20%
Percentage (%) Row: 1, Col: 1, Value: -5.03 Row: 2, Col: 1, Value: 68.13 Row: 3, Col: 1, Value: 22.08 Row: 4, Col: 1, Value: 13.03 Row: 5, Col: 1, Value: -5.01 Row: 6, Col: 1, Value: 11.98 Row: 7, Col: 1, Value: 20.86 Row: 8, Col: 1, Value: 41.73 Row: 9, Col: 1, Value: 45.76000000000001 Row: 10, Col: 1, Value: 5.2 DURING THE PERIODS SHOWN IN THE CHART FOR RETAILING, THE HIGHEST RETURN FOR A QUARTER WAS 34.78% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -27.05% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR RETAILING WAS 0.48%.
SOFTWARE AND COMPUTER SERVICES Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 0.86% 45.84% 35.54% 32.73% 0.39% 46.26% 21.77% 15.01% 45.77% 93.12%
Percentage (%) Row: 1, Col: 1, Value: 0.8600000000000001 Row: 2, Col: 1, Value: 45.84 Row: 3, Col: 1, Value: 35.54 Row: 4, Col: 1, Value: 32.73 Row: 5, Col: 1, Value: 0.3900000000000001 Row: 6, Col: 1, Value: 46.26000000000001 Row: 7, Col: 1, Value: 21.77 Row: 8, Col: 1, Value: 15.01 Row: 9, Col: 1, Value: 45.77 Row: 10, Col: 1, Value: 93.11999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR SOFTWARE AND COMPUTER SERVICES, THE HIGHEST RETURN FOR A QUARTER WAS 57.10% (QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -30.81% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR SOFTWARE AND COMPUTER SERVICES WAS 4.95%.
TECHNOLOGY Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 10.50% 58.97% 8.72% 28.65% 11.13% 43.81% 15.82% 10.33% 74.16% 131.75%
Percentage (%) Row: 1, Col: 1, Value: 10.5 Row: 2, Col: 1, Value: 58.97 Row: 3, Col: 1, Value: 8.719999999999999 Row: 4, Col: 1, Value: 28.65 Row: 5, Col: 1, Value: 11.13 Row: 6, Col: 1, Value: 43.81 Row: 7, Col: 1, Value: 15.82 Row: 8, Col: 1, Value: 10.33 Row: 9, Col: 1, Value: 74.16 Row: 10, Col: 1, Value: 131.75 DURING THE PERIODS SHOWN IN THE CHART FOR TECHNOLOGY, THE HIGHEST RETURN FOR A QUARTER WAS 62.10% (QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -25.19% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR TECHNOLOGY WAS 25.29%.
TELECOMMUNICATIONS Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -16.40% 30.85% 15.32% 29.72% 4.32% 29.66% 5.40% 25.83% 41.04% 66.60%
Percentage (%) Row: 1, Col: 1, Value: -16.4 Row: 2, Col: 1, Value: 30.85 Row: 3, Col: 1, Value: 15.32 Row: 4, Col: 1, Value: 29.72 Row: 5, Col: 1, Value: 4.319999999999999 Row: 6, Col: 1, Value: 29.66 Row: 7, Col: 1, Value: 5.4 Row: 8, Col: 1, Value: 25.83 Row: 9, Col: 1, Value: 41.04 Row: 10, Col: 1, Value: 66.59999999999999 DURING THE PERIODS SHOWN IN THE CHART FOR TELECOMMUNICATIONS, THE HIGHEST RETURN FOR A QUARTER WAS 36.02% (QUARTER ENDED DECEMBER 31, 1999) AND THE LOWEST RETURN FOR A QUARTER WAS -21.14% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR TELECOMMUNICATIONS WAS 16.82%.
TRANSPORTATION Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 -21.59% 54.14% 23.79% 29.32% 3.87% 15.17% 9.50% 32.13% -4.34% 27.69%
Percentage (%) Row: 1, Col: 1, Value: -21.59 Row: 2, Col: 1, Value: 54.14 Row: 3, Col: 1, Value: 23.79 Row: 4, Col: 1, Value: 29.32 Row: 5, Col: 1, Value: 3.87 Row: 6, Col: 1, Value: 15.17 Row: 7, Col: 1, Value: 9.5 Row: 8, Col: 1, Value: 32.13 Row: 9, Col: 1, Value: -4.34 Row: 10, Col: 1, Value: 27.69 DURING THE PERIODS SHOWN IN THE CHART FOR TRANSPORTATION, THE HIGHEST RETURN FOR A QUARTER WAS 19.76% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -25.91% (QUARTER ENDED SEPTEMBER 30, 1990). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR TRANSPORTATION WAS - -2.51%.
UTILITIES GROWTH Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 0.55% 21.03% 10.59% 12.54% -7.41% 34.39% 11.37% 30.31% 43.16% 25.92%
Percentage (%) Row: 1, Col: 1, Value: 0.55 Row: 2, Col: 1, Value: 21.03 Row: 3, Col: 1, Value: 10.59 Row: 4, Col: 1, Value: 12.54 Row: 5, Col: 1, Value: -7.41 Row: 6, Col: 1, Value: 34.39 Row: 7, Col: 1, Value: 11.37 Row: 8, Col: 1, Value: 30.31 Row: 9, Col: 1, Value: 43.16 Row: 10, Col: 1, Value: 25.92 DURING THE PERIODS SHOWN IN THE CHART FOR UTILITIES GROWTH, THE HIGHEST RETURN FOR A QUARTER WAS 23.01% (QUARTER ENDED DECEMBER 31, 1998) AND THE LOWEST RETURN FOR A QUARTER WAS -6.17% (QUARTER ENDED DECEMBER 31, 1993). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR UTILITIES GROWTH WAS 12.81%.
MONEY MARKET Calendar Years 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 7.79% 5.80% 3.52% 2.69% 3.74% 5.66% 5.06% 5.20% 5.20% 4.91%
Percentage (%) Row: 1, Col: 1, Value: 7.79 Row: 2, Col: 1, Value: 5.8 Row: 3, Col: 1, Value: 3.52 Row: 4, Col: 1, Value: 2.69 Row: 5, Col: 1, Value: 3.74 Row: 6, Col: 1, Value: 5.659999999999999 Row: 7, Col: 1, Value: 5.06 Row: 8, Col: 1, Value: 5.2 Row: 9, Col: 1, Value: 5.2 Row: 10, Col: 1, Value: 4.91 DURING THE PERIODS SHOWN IN THE CHART FOR MONEY MARKET, THE HIGHEST RETURN FOR A QUARTER WAS 1.91% (QUARTER ENDED JUNE 30, 1990) AND THE LOWEST RETURN FOR A QUARTER WAS 0.63% (QUARTER ENDED DECEMBER 31, 1993). THE YEAR-TO-DATE RETURN AS OF MARCH 31, 2000 FOR MONEY MARKET WAS 1.38%. AVERAGE ANNUAL RETURNS The returns in the following table include the effect of each fund's 3.00% maximum applicable front-end sales charge and each stock fund's $7.50 redemption fee (trading fee).
For the periods ended Past 1 year Past 5 years Past 10 years/Life of fund December 31, 1999 Air Transportation 30.39% 24.07% 13.66% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Automotive -16.14% 6.24% 11.24% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Banking -12.84% 23.14% 19.95% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Financial -0.94% n/a n/a Services Index Biotechnology 72.37% 32.34% 24.03% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Health Care Index -4.04% n/a n/a Brokerage and Investment 26.66% 30.27% 22.23% Management S&P 500 21.04% 28.56% 18.21% Goldman Sachs Financial -0.94% n/a n/a Services Index Business Services and 25.43% n/a 32.83%A Outsourcing S&P 500 21.04% n/a 23.66%A Goldman Sachs Technology Index 88.87% n/a 74.57%A Chemicals 15.54% 10.81% 12.09% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Computers 75.60% 47.15% 35.08% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Technology Index 88.87% n/a n/a Construction and Housing -15.14% 14.57% 12.89% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Consumer Industries 6.76% 22.24% 17.70%B S&P 500 21.04% 28.56% 18.88%B Goldman Sachs Consumer 8.32% n/a n/a Industries Index Cyclical Industries 9.58% n/a 11.66%C S&P 500 21.04% n/a 26.09%C Goldman Sachs Cyclical 5.54% n/a 9.67%C Industries Index Defense and Aerospace 8.40% 20.83% 15.13% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Developing Communications 115.75% 38.84% 31.38%B S&P 500 21.04% 28.56% 18.88%B Goldman Sachs Technology Index 88.87% n/a n/a Electronics 100.40% 52.51% 37.00% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Technology Index 88.87% n/a n/a Energy 30.13% 14.50% 8.18% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Natural 27.23% n/a n/a Resources Index Energy Service 66.91% 21.77% 10.12% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Natural 27.23% n/a n/a Resources Index Environmental Services -28.15% 0.51% -0.46% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Financial Services -1.56% 25.45% 19.91% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Financial -0.94% n/a n/a Services Index Food and Agriculture -22.93% 12.49% 12.45% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Consumer 8.32% n/a n/a Industries Index Gold 5.03% -4.96% -1.24% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Natural 27.23% n/a n/a Resources Index Health Care -5.87% 24.06% 21.30% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Health Care Index -4.04% n/a n/a Home Finance -15.07% 17.26% 20.39% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Financial -0.94% n/a n/a Services Index Industrial Equipment 13.80% 19.75% 15.82% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Industrial Materials 12.91% 6.11% 8.37% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Insurance -8.84% 21.13% 15.55% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Financial -0.94% n/a n/a Services Index Leisure 28.77% 29.30% 18.89% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Consumer 8.32% n/a n/a Industries Index Medical Delivery -31.78% 2.46% 9.87% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Health Care Index -4.04% n/a n/a Medical Equipment and Systems 7.33% n/a 17.73%D S&P 500 21.04% n/a 21.46%D Goldman Sachs Health Care Index -4.04% n/a 9.45%D Multimedia 39.74% 27.39% 19.53% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Consumer 8.32% n/a n/a Industries Index Natural Gas 22.34% 11.53% 6.52%E S&P 500 21.04% 28.56% 22.13%E Goldman Sachs Utilities Index 20.25% n/a n/a Natural Resources 34.56% n/a 6.51%C S&P 500 21.04% n/a 26.09%C Goldman Sachs Natural 27.23% n/a 9.41%C Resources Index Paper and Forest Products 26.52% 10.72% 11.18% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Retailing 1.97% 23.32% 19.56% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Consumer 8.32% n/a n/a Industries Index Software and Computer Services 87.26% 41.10% 30.98% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Technology Index 88.87% n/a n/a Technology 124.72% 48.38% 34.69% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Technology Index 88.87% n/a n/a Telecommunications 61.53% 31.41% 20.93% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Utilities Index 20.25% n/a n/a Transportation 23.79% 14.57% 14.77% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Cyclical 5.54% n/a n/a Industries Index Utilities Growth 22.07% 27.80% 16.94% S&P 500 21.04% 28.56% 18.21% Goldman Sachs Utilities Index 20.25% n/a n/a Money Market 1.76% 4.57% 4.63%
A FROM FEBRUARY 4, 1998. B FROM JUNE 29, 1990. C FROM MARCH 3, 1997. D FROM APRIL 28, 1998. E FROM APRIL 21, 1993. If FMR had not reimbursed certain fund expenses during these periods, each fund's returns would have been lower. Standard & Poor's 500 Index (S&P 500(registered trademark)) is a market capitalization-weighted index of common stocks. Goldman Sachs Consumer Industries Index is a market capitalization-weighted index of 301 stocks designed to measure the performance of companies in the consumer industries sector. Goldman Sachs Cyclical Industries Index is a market capitalization-weighted index of 246 stocks designed to measure the performance of companies in the cyclical industries sector. Goldman Sachs Financial Services Index is a market capitalization-weighted index of 252 stocks designed to measure the performance of companies in the financial services sector. Goldman Sachs Health Care Index is a market capitalization-weighted index of 97 stocks designed to measure the performance of companies in the health care sector. Goldman Sachs Natural Resources Index is a market capitalization-weighted index of 105 stocks designed to measure the performance of companies in the natural resources sector. Goldman Sachs Technology Index is a market capitalization-weighted index of 185 stocks designed to measure the performance of companies in the technology sector. Goldman Sachs Utilities Index is a market capitalization-weighted index of 150 stocks designed to measure the performance of companies in the utilities sector. FEE TABLE The following table describes the fees and expenses that are incurred when you buy, hold, or sell shares of a fund. The annual fund operating expenses provided below for each fund do not reflect the effect of any reduction of certain expenses during the period. The annual fund operating expenses provided below for Cyclical Industries do not reflect the effect of any expense reimbursements during the period. SHAREHOLDER FEES (PAID BY THE INVESTOR DIRECTLY) Maximum sales charge (load) 3.00% on purchases (as a % of offering price)A Sales charge (load) on None reinvested distributions Deferred sales charge (load) None on redemptions Redemption fee for the stock funds (as a % of amount redeemed) on shares held 29 days or less 0.75% on shares held 30 days or 0.75% more for redemption amounts of up to $1,000 for redemption amounts of $7.50 $1,000 or more Exchange fee for the stock funds onlyB $7.50 Annual account maintenance $12.00 fee (for accounts under $2,500) A LOWER SALES CHARGES MAY BE AVAILABLE FOR ACCOUNTS OVER $250,000. B YOU WILL NOT PAY AN EXCHANGE FEE IF YOU EXCHANGE THROUGH ANY OF FIDELITY'S AUTOMATED EXCHANGE SERVICES. ANNUAL FUND OPERATING EXPENSES (PAID FROM FUND ASSETS) AIR TRANSPORTATION Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.82% Total annual fund operating 1.40% expensesA AUTOMOTIVE Management fee 0.57% Distribution and Service None (12b-1) fee Other expenses 1.37% Total annual fund operating 1.94% expensesA BANKING Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.65% Total annual fund operating 1.23% expensesA BIOTECHNOLOGY Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.57% Total annual fund operating 1.16% expensesA BROKERAGE AND INVESTMENT Management fee 0.58% MANAGEMENT Distribution and Service None (12b-1) fee Other expenses 0.71% Total annual fund operating 1.29% expensesA BUSINESS SERVICES AND Management fee 0.58% OUTSOURCING Distribution and Service None (12b-1) fee Other expenses 0.92% Total annual fund operating 1.50% expensesA CHEMICALS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.06% Total annual fund operating 1.64% expensesA COMPUTERS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.49% Total annual fund operating 1.07% expensesA CONSTRUCTION AND HOUSING Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.84% Total annual fund operating 2.42% expensesA CONSUMER INDUSTRIES Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.69% Total annual fund operating 1.27% expensesA CYCLICAL INDUSTRIES Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 2.35% Total annual fund operating 2.93% expensesA DEFENSE AND AEROSPACE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.03% Total annual fund operating 1.61% expensesA DEVELOPING COMMUNICATIONS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.53% Total annual fund operating 1.11% expensesA ELECTRONICS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.41% Total annual fund operating 0.99% expensesA ENERGY Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.71% Total annual fund operating 1.29% expensesA ENERGY SERVICE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.65% Total annual fund operating 1.23% expensesA ENVIRONMENTAL SERVICES Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.89% Total annual fund operating 2.47% expensesA FINANCIAL SERVICES Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.61% Total annual fund operating 1.19% expensesA FOOD AND AGRICULTURE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.73% Total annual fund operating 1.31% expensesA GOLD Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.91% Total annual fund operating 1.49% expensesB HEALTH CARE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.49% Total annual fund operating 1.07% expensesA HOME FINANCE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.81% Total annual fund operating 1.39% expensesA INDUSTRIAL EQUIPMENT Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.85% Total annual fund operating 1.43% expensesA INDUSTRIAL MATERIALS Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 1.33% Total annual fund operating 1.92% expensesA INSURANCE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.81% Total annual fund operating 1.39% expensesA LEISURE Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.57% Total annual fund operating 1.15% expensesA MEDICAL DELIVERY Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.15% Total annual fund operating 1.73% expensesA MEDICAL EQUIPMENT AND SYSTEMS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.08% Total annual fund operating 1.66% expensesA MULTIMEDIA Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.59% Total annual fund operating 1.17% expensesA NATURAL GAS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.84% Total annual fund operating 1.42% expensesA NATURAL RESOURCES Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.31% Total annual fund operating 1.89% expensesA PAPER AND FOREST PRODUCTS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.31% Total annual fund operating 1.89% expensesA RETAILING Management fee 0.57% Distribution and Service None (12b-1) fee Other expenses 0.68% Total annual fund operating 1.25% expensesA SOFTWARE AND COMPUTER SERVICES Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.53% Total annual fund operating 1.11% expensesA TECHNOLOGY Management fee 0.59% Distribution and Service None (12b-1) fee Other expenses 0.46% Total annual fund operating 1.05% expensesA TELECOMMUNICATIONS Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.54% Total annual fund operating 1.12% expensesA TRANSPORTATION Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 1.19% Total annual fund operating 1.77% expensesA UTILITIES GROWTH Management fee 0.58% Distribution and Service None (12b-1) fee Other expenses 0.49% Total annual fund operating 1.07% expensesA MONEY MARKET Management fee 0.18% Distribution and Service None (12b-1) fee Other expenses 0.30% Total annual fund operating 0.48% expensesA A FMR HAS VOLUNTARILY AGREED TO REIMBURSE THE FUND TO THE EXTENT THAT TOTAL OPERATING EXPENSES (EXCLUDING INTEREST, TAXES, CERTAIN SECURITIES LENDING COSTS, BROKERAGE COMMISSIONS AND EXTRAORDINARY EXPENSES), AS A PERCENTAGE OF ITS AVERAGE NET ASSETS, EXCEED 2.50%. THIS ARRANGEMENT CAN BE DISCONTINUED BY FMR AT ANY TIME. B FMR HAS AGREED TO REIMBURSE GOLD PORTFOLIO TO THE EXTENT THAT TOTAL OPERATING EXPENSES (EXCLUDING INTEREST, TAXES, CERTAIN SECURITIES LENDING COSTS, BROKERAGE COMMISSIONS AND EXTRAORDINARY EXPENSES), AS A PERCENTAGE OF ITS AVERAGE NET ASSETS, EXCEED 1.54%. THIS ARRANGEMENT WILL REMAIN IN EFFECT THROUGH FEBRUARY 28, 2001. A portion of the brokerage commissions that a fund pays is used to reduce that fund's expenses. In addition, through arrangements with each fund's custodian and transfer agent, credits realized as a result of uninvested cash balances are used to reduce custodian and transfer agent expenses. Including these reductions, the total fund operating expenses are shown in the table below. Total Operating Expenses AIR TRANSPORTATION 1.35% AUTOMOTIVE 1.91% BANKING 1.19% BIOTECHNOLOGY 1.15% BROKERAGE AND INVESTMENT 1.28% MANAGEMENT BUSINESS SERVICES AND 1.48% OUTSOURCING CHEMICALS 1.63% COMPUTERS 1.05% CONSTRUCTION AND HOUSING 2.34% CONSUMER INDUSTRIES 1.25% CYCLICAL INDUSTRIES 2.49%* DEFENSE AND AEROSPACE 1.59% DEVELOPING COMMUNICATIONS 1.11% ELECTRONICS 0.98% ENERGY 1.25% ENERGY SERVICE 1.20% ENVIRONMENTAL SERVICES 2.39% FINANCIAL SERVICES 1.17% FOOD AND AGRICULTURE 1.29% GOLD 1.41% HEALTH CARE 1.05% HOME FINANCE 1.37% INDUSTRIAL EQUIPMENT 1.41% INDUSTRIAL MATERIALS 1.89% INSURANCE 1.36% LEISURE 1.12% MEDICAL DELIVERY 1.67% MEDICAL EQUIPMENT AND SYSTEMS 1.65% MULTIMEDIA 1.15% NATURAL GAS 1.39% NATURAL RESOURCES 1.85% PAPER AND FOREST PRODUCTS 1.74% RETAILING 1.20% SOFTWARE AND COMPUTER SERVICES 1.11% TECHNOLOGY 1.04% TELECOMMUNICATIONS 1.09% TRANSPORTATION 1.71% UTILITIES GROWTH 1.04% MONEY MARKET 0.48% * AFTER REIMBURSEMENT. This EXAMPLE helps you compare the cost of investing in the funds with the cost of investing in other mutual funds. Let's say, hypothetically, that each fund's annual return is 5% and that your shareholder fees and each fund's annual operating expenses are exactly as described in the fee table. This example illustrates the effect of fees and expenses, but is not meant to suggest actual or expected fees and expenses or returns, all of which may vary. For every $10,000 you invested, here's how much you would pay in total expenses if you close your account at the end of each time period indicated and if you leave your account open: Account open Account closed AIR TRANSPORTATION 1 year $ 438 $ 446 3 years $ 730 $ 737 5 years $ 1,043 $ 1,050 10 years $ 1,929 $ 1,937 AUTOMOTIVE 1 year $ 491 $ 499 3 years $ 891 $ 898 5 years $ 1,316 $ 1,323 10 years $ 2,496 $ 2,504 BANKING 1 year $ 422 $ 429 3 years $ 679 $ 686 5 years $ 955 $ 963 10 years $ 1,744 $ 1,751 BIOTECHNOLOGY 1 year $ 415 $ 422 3 years $ 657 $ 665 5 years $ 919 $ 927 10 years $ 1,667 $ 1,674 BROKERAGE AND INVESTMENT 1 year $ 427 $ 435 MANAGEMENT 3 years $ 697 $ 704 5 years $ 986 $ 994 10 years $ 1,810 $ 1,817 BUSINESS SERVICES AND 1 year $ 448 $ 456 OUTSOURCING 3 years $ 760 $ 767 5 years $ 1,094 $ 1,101 10 years $ 2,037 $ 2,044 CHEMICALS 1 year $ 462 $ 469 3 years $ 802 $ 809 5 years $ 1,165 $ 1,172 10 years $ 2,185 $ 2,193 COMPUTERS 1 year $ 406 $ 413 3 years $ 630 $ 638 5 years $ 872 $ 880 10 years $ 1,566 $ 1,574 CONSTRUCTION AND HOUSING 1 year $ 538 $ 545 3 years $ 1,032 $ 1,039 5 years $ 1,552 $ 1,559 10 years $ 2,974 $ 2,981 CONSUMER INDUSTRIES 1 year $ 425 $ 433 3 years $ 691 $ 698 5 years $ 976 $ 984 10 years $ 1,788 $ 1,795 CYCLICAL INDUSTRIES 1 year $ 587 $ 595 3 years $ 1,179 $ 1,187 5 years $ 1,796 $ 1,804 10 years $ 3,454 $ 3,462 DEFENSE AND AEROSPACE 1 year $ 459 $ 466 3 years $ 793 $ 800 5 years $ 1,150 $ 1,157 10 years $ 2,154 $ 2,161 DEVELOPING COMMUNICATIONS 1 year $ 410 $ 417 3 years $ 642 $ 650 5 years $ 893 $ 901 10 years $ 1,611 $ 1,619 ELECTRONICS 1 year $ 398 $ 405 3 years $ 606 $ 613 5 years $ 831 $ 838 10 years $ 1,477 $ 1,484 ENERGY 1 year $ 427 $ 435 3 years $ 697 $ 704 5 years $ 986 $ 994 10 years $ 1,810 $ 1,817 ENERGY SERVICE 1 year $ 422 $ 429 3 years $ 679 $ 686 5 years $ 955 $ 963 10 years $ 1,744 $ 1,751 ENVIRONMENTAL SERVICES 1 year $ 543 $ 550 3 years $ 1,046 $ 1,054 5 years $ 1,576 $ 1,584 10 years $ 3,022 $ 3,029 FINANCIAL SERVICES 1 year $ 418 $ 425 3 years $ 667 $ 674 5 years $ 935 $ 942 10 years $ 1,700 $ 1,707 FOOD AND AGRICULTURE 1 year $ 429 $ 437 3 years $ 703 $ 710 5 years $ 997 $ 1,004 10 years $ 1,832 $ 1,839 GOLD 1 year $ 447 $ 455 3 years $ 757 $ 764 5 years $ 1,089 $ 1,096 10 years $ 2,026 $ 2,034 HEALTH CARE 1 year $ 406 $ 413 3 years $ 630 $ 638 5 years $ 872 $ 880 10 years $ 1,566 $ 1,574 HOME FINANCE 1 year $ 437 $ 445 3 years $ 727 $ 734 5 years $ 1,038 $ 1,045 10 years $ 1,919 $ 1,926 INDUSTRIAL EQUIPMENT 1 year $ 441 $ 449 3 years $ 739 $ 746 5 years $ 1,058 $ 1,066 10 years $ 1,962 $ 1,969 INDUSTRIAL MATERIALS 1 year $ 489 $ 497 3 years $ 885 $ 892 5 years $ 1,306 $ 1,313 10 years $ 2,476 $ 2,483 INSURANCE 1 year $ 437 $ 445 3 years $ 727 $ 734 5 years $ 1,038 $ 1,045 10 years $ 1,919 $ 1,926 LEISURE 1 year $ 414 $ 421 3 years $ 654 $ 662 5 years $ 914 $ 921 10 years $ 1,656 $ 1,663 MEDICAL DELIVERY 1 year $ 471 $ 478 3 years $ 829 $ 836 5 years $ 1,210 $ 1,218 10 years $ 2,280 $ 2,287 MEDICAL EQUIPMENT AND SYSTEMS 1 year $ 464 $ 471 3 years $ 808 $ 815 5 years $ 1,175 $ 1,183 10 years $ 2,206 $ 2,214 MULTIMEDIA 1 year $ 416 $ 423 3 years $ 660 $ 668 5 years $ 924 $ 932 10 years $ 1,678 $ 1,685 NATURAL GAS 1 year $ 440 $ 448 3 years $ 736 $ 743 5 years $ 1,053 $ 1,061 10 years $ 1,951 $ 1,958 NATURAL RESOURCES 1 year $ 486 $ 494 3 years $ 876 $ 884 5 years $ 1,291 $ 1,298 10 years $ 2,445 $ 2,453 PAPER AND FOREST PRODUCTS 1 year $ 486 $ 494 3 years $ 876 $ 884 5 years $ 1,291 $ 1,298 10 years $ 2,445 $ 2,453 RETAILING 1 year $ 424 $ 431 3 years $ 685 $ 692 5 years $ 966 $ 973 10 years $ 1,766 $ 1,773 SOFTWARE AND COMPUTER SERVICES 1 year $ 410 $ 417 3 years $ 642 $ 650 5 years $ 893 $ 901 10 years $ 1,611 $ 1,619 TECHNOLOGY 1 year $ 404 $ 411 3 years $ 624 $ 632 5 years $ 862 $ 869 10 years $ 1,544 $ 1,552 TELECOMMUNICATIONS 1 year $ 411 $ 418 3 years $ 645 $ 653 5 years $ 898 $ 906 10 years $ 1,622 $ 1,630 TRANSPORTATION 1 year $ 474 $ 482 3 years $ 840 $ 848 5 years $ 1,231 $ 1,238 10 years $ 2,321 $ 2,329 UTILITIES GROWTH 1 year $ 406 $ 413 3 years $ 630 $ 638 5 years $ 872 $ 880 10 years $ 1,566 $ 1,574 MONEY MARKET 1 year $ 348 $ 348 3 years $ 449 $ 449 5 years $ 561 $ 561 10 years $ 886 $ 886 FUND BASICS INVESTMENT DETAILS THE STOCK FUNDS INVESTMENT OBJECTIVE EACH FUND seeks capital appreciation. PRINCIPAL INVESTMENT STRATEGIES AIR TRANSPORTATION PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the regional, national, and international movement of passengers, mail, and freight via aircraft. These companies may include, for example, major airlines, commuter airlines, air cargo and express delivery operators, airfreight forwarders, and companies that provide equipment or services to these companies, such as aviation service firms and manufacturers of aeronautical equipment. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. AUTOMOTIVE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. These companies may include, for example, companies involved with the manufacture and distribution of vehicles, vehicle parts and tires (either original equipment or for the aftermarket) and companies involved in the retail sale of vehicles, parts, or tires. They may also include companies that provide automotive-related services to manufacturers, distributors or consumers. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. BANKING PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. These companies may include, for example, state chartered banks, savings and loan institutions, banks that are members of the Federal Reserve System, and U.S. institutions whose deposits are not insured by the federal government. In addition, these companies may offer merchant banking, consumer and commercial finance, discount brokerage, leasing, and insurance. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. BIOTECHNOLOGY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, and manufacture of various biotechnological products, services, and processes. These companies may include, for example, companies involved with 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). They may also include companies that manufacture biotechnological and biomedical products, including devices and instruments; companies that provide biotechnological processes or services; companies that provide scientific and technological advances in biotechnology; and companies involved with new or experimental technologies such as genetic engineering, hybridoma, and recombinant DNA techniques and monoclonal antibodies. FMR may also invest the fund's assets in securities of companies that distribute biotechnological and biomedical products, including devices and instruments, and companies that benefit significantly from scientific and technological advances in biotechnology. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in stock brokerage, commodity brokerage, investment banking, tax-advantaged investment or investment sales, investment management, or related investment advisory services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. BUSINESS SERVICES AND OUTSOURCING PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in providing business-related services to companies and other organizations. These companies may include those that provide, for example, data processing, consulting, outsourcing, temporary employment, market research or database services, printing, advertising, computer programming, credit reporting, claims collection, mailing and photocopying, typically on a contractual or fee basis. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CHEMICALS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, manufacture or marketing of products or services related to the chemical process industries. These companies may include, for example, companies involved with products 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. They may also include companies providing design, engineering, construction, and consulting services to companies engaged in chemical processing. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. COMPUTERS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally 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. These companies may include, for example, companies that provide products or services such as mainframes, minicomputers, microcomputers, peripherals, computer and office equipment wholesalers, software retailers, data or information processing, office or factory automation, robotics, artificial intelligence, computer-aided design, medical technology, engineering and manufacturing, data communications, and software. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CONSTRUCTION AND HOUSING PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally 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. These companies may include, for example, companies that produce basic building materials such as cement, aggregates, gypsum, timber, and wall and floor coverings; companies that supply home furnishings; and companies that provide engineering or contracting services. They may also include companies involved in real estate development and construction financing such as homebuilders, architectural and design firms, and property managers, and companies involved in the home improvement and maintenance industry, including building material retailers and distributors, household service firms, and those companies that supply such companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CONSUMER INDUSTRIES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture and distribution of goods to consumers both domestically and internationally. These companies may include, for example, companies that manufacture or sell durable goods such as homes, cars, boats, furniture, major appliances, and personal computers; and 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 (e.g., books, magazines, TV, cable, movies, music, gaming, and sports). They may also include companies that provide consumer services such as lodging, child care, convenience stores, and car rentals. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. CYCLICAL INDUSTRIES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products, or services related to cyclical industries. These companies may include, for example, companies in the the automotive, chemical, construction and housing, defense and aerospace, environmental services, industrial equipment and materials, paper and forest products, and transportation industries. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. DEFENSE AND AEROSPACE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, manufacture, or sale of products or services related to the defense or aerospace industries. These companies may include, for example, companies that provide the following products or services: air transport; defense electronics; aircraft or spacecraft production; missile design; satellite design; data processing or computer-related services; communications systems; research; development and manufacture of military weapons and transportation; general aviation equipment, missiles, satellites, space launch vehicles, and spacecraft; units for guidance, propulsion, and control of flight vehicles; and equipment components and airborne and ground-based equipment essential to the testing, operation, and maintenance of flight vehicles. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. DEVELOPING COMMUNICATIONS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally 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. These companies may include, for example, companies involved in cellular communications, software development, video conferencing, data processing, paging, personal communications networks, special mobile radio, facsimile, fiber optic transmission, voicemail, microwave, satellite, local and wide area networking, and other transmission electronics. FMR places less emphasis on traditional communications companies such as traditional telephone utilities and large long distance carriers. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ELECTRONICS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally 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. These companies may include, for example, companies involved in all aspects of the electronics business and in new technologies or specialty areas such as defense electronics, medical electronics, consumer electronics, advanced design and manufacturing technologies (e.g., computer-aided design and computer-aided manufacturing, computer-aided engineering, and robotics), and lasers and electro-optics. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ENERGY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged 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. These companies may include, for example, companies that produce, generate, refine, control, transmit, market, distribute, or measure energy or energy fuels such as petro-chemicals; companies involved in providing products and services to companies in the energy field; companies involved in energy research or experimentation; and companies involved in the exploration of new sources of energy, conservation, and energy-related pollution control. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ENERGY SERVICE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged 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. These companies may include, for example, companies providing services and equipment for drilling processes such as offshore and onshore drilling; companies involved in production and well maintenance; companies involved in exploration engineering, data, and technology; companies that provide geological and geophysical services; companies involved in energy transport; companies involved in geothermal, electric, or nuclear plant design or construction; and companies with a variety of products or services including oil tool rental, underwater well services, helicopter services, energy-related capital equipment, and mining-related equipment or services. They may also include companies that provide products and services to these companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. ENVIRONMENTAL SERVICES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the research, development, manufacture, or distribution of products, processes, or services related to waste management or pollution control. These companies may include, for example, companies involved in the transportation, treatment, and disposal of hazardous or other wastes; transforming waste into energy; recycling; and participating in remedial projects, including groundwater and underground storage tank decontamination, asbestos cleanup, and emergency cleanup response. They may also include companies involved in the detection, analysis, evaluation, and treatment of both existing and potential environmental problems such as contaminated water, air pollution, and acid rain; companies that provide sanitation or filtration equipment or services; companies involved in the reduction of hazardous emissions or other pollution reduction or prevention efforts; and companies that provide design, engineering, construction, and consulting services to companies engaged in waste management or pollution control. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. FINANCIAL SERVICES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in providing financial services to consumers and industry. These companies may include, for example, commercial banks, savings and loan associations, brokerage companies, insurance companies, real estate-related companies, leasing companies, and consumer and industrial finance companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. FOOD AND AGRICULTURE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, sale, or distribution of food and beverage products, agricultural products, and products related to the development of new food technologies. These companies may include, for example, companies that sell products and services such as meat and poultry processing and wholesale and retail distribution and warehousing of food and food-related products, including restaurants and grocery stores; companies that manufacture and distribute products including soft drinks, packaged food products (such as cereals, pet foods, and frozen foods), health food and dietary products, wood products, tobacco, fertilizer, and agricultural machinery; and companies engaged in the development of new technologies to provide, for example, improved hybrid seeds, new and safer food storage, and new enzyme technologies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. GOLD PORTFOLIO FMR normally invests the fund's assets primarily in common stocks and in certain precious metals. FMR invests the fund's assets 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. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in gold-related activities, and in gold bullion or coins. Gold-related activities may include exploration, mining, processing, or dealing in gold, or the manufacture or distribution of gold products such as jewelry, watches, and gold foil and leaf. FMR treats investments in instruments whose value is linked to the price of gold as investments in gold bullion or coins. FMR may also invest the fund's assets in other precious metals in the form of bullion, coins, securities indexed to the price of precious metals, and securities of companies that manufacture and distribute precious metal and minerals products (such as jewelry, watches, and metal foils and leaf) and companies that invest in other companies engaged in gold and other precious metal and mineral-related activities. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. HEALTH CARE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the design, manufacture, or sale of products or services used for or in connection with health care or medicine. These companies may include, for example, pharmaceutical companies; companies involved in biotechnology, medical diagnostic, biochemical, or other health care research and development; companies involved in the operation of health care facilities; and other companies involved in the design, manufacture, or sale of health care-related products or services, such as medical, dental, and optical products, hardware, or services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. HOME FINANCE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in investing in real estate, usually through mortgages and other consumer-related loans. These companies may include, for example, mortgage banking companies, real estate investment trusts, government-sponsored enterprises, consumer finance companies, savings and loan associations, savings banks, building and loan associations, cooperative banks, commercial banks, and other depository institutions. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. INDUSTRIAL EQUIPMENT PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the manufacture, distribution, or service of products and equipment for the industrial sector, including integrated producers of capital equipment (such as general industrial machinery, farm equipment, and computers), parts suppliers, and subcontractors. These companies may include, for example, companies that provide service establishment, railroad, textile, farming, mining, oilfield, semiconductor, and telecommunications equipment; companies that manufacture products or service equipment for trucks, construction, transportation, or machine tools; companies that manufacture products or service equipment for the food, clothing, or sporting goods industries; cable equipment companies; and office automation companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. INDUSTRIAL MATERIALS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally 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, textiles, wood products, cement, and gypsum. These companies may include, for example, mining, processing, transportation, and distribution companies, including equipment suppliers and railroads. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. INSURANCE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in underwriting, reinsuring, selling, distributing, or placing of property and casualty, life, or health insurance. These companies may include, for example, 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 insurance brokers, reciprocals, and claims processors. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. LEISURE PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the design, production, or distribution of goods or services in the leisure industries. These companies may include, for example, companies that provide goods or services including: 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; sports arenas and gaming casinos; toys and games, including video and other electronic games; amusement and theme parks; travel and travel-related services; hotels and motels; leisure apparel or footwear; fast food, beverages, restaurants, and tobacco products. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. MEDICAL DELIVERY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the ownership or management of hospitals, nursing homes, health maintenance organizations, and other companies specializing in the delivery of health care services. These companies may include, for example, companies that operate acute care, psychiatric, teaching, or specialized treatment hospitals; companies that provide outpatient surgical, outpatient rehabilitation, or other specialized care; companies that provide home health care; companies that provide drug and alcohol abuse treatment; companies that provide dental care; companies that operate comprehensive health maintenance organizations or health insurance organizations; companies that operate nursing homes for the elderly and disabled; companies that facilitate the development, testing, or regulatory approval of drugs; companies that supply or distribute medical equipment or drugs; companies that provide health care information services, including companies that provide hardware, software, or research services; and companies that provide related services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in research, development, manufacture, distribution, supply, or sale of medical equipment and devices and related technologies. These companies may include, for example, companies involved in the design and manufacture of medical equipment and devices, drug delivery technologies, hospital equipment and supplies, medical instrumentation, and medical diagnostics. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. MULTIMEDIA PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the development, production, sale, and distribution of goods or services used in the broadcast and media industries. These companies may include, for example, advertising companies; companies that own, operate, or broadcast free or pay television, radio, or cable stations; theaters; film studios; publishers or sellers of newspapers, magazines, books, or video products; printing, cable television and video companies and equipment providers; pay-per-view television companies; companies involved in emerging technologies for the broadcast and media industries; cellular communications companies; companies involved in the development, syndication, and transmission of television, movie programming, advertising, and cellular communications; companies that distribute data-based information; and other companies involved in the ownership, operation, or development of media products or services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. NATURAL GAS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally 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. These companies may include, for example, companies involved in the production, refinement, transmission, distribution, marketing, control, or measurement of natural gas; companies involved in exploration of potential natural gas sources; companies involved in natural gas research or experimentation; companies working toward the solution of energy problems, such as energy conservation or pollution control through the use of natural gas; companies working toward technological advances in the natural gas field; and other companies providing equipment or services to the field. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. NATURAL RESOURCES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks and in certain precious metals. FMR invests the fund's assets primarily in companies that own or develop natural resources, or supply goods and services to such companies. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in owning or developing natural resources, or supplying goods and services to such companies, and in precious metals. These companies may include, for example, companies involved either directly or through subsidiaries in exploring, mining, refining, processing, transporting, fabricating, dealing in, or owning natural resources. Natural resources include precious metals (e.g., gold, platinum, and silver), ferrous and nonferrous metals (e.g., iron, aluminum, and copper), strategic metals (e.g., uranium and titanium), hydrocarbons (e.g., coal, oil, and natural gases), chemicals, forest products, real estate, food, textile and tobacco products, and other basic commodities. FMR treats investments in instruments whose value is linked to the price of precious metals as investments in precious metals. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. PAPER AND FOREST PRODUCTS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally 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. These companies may include, for example, paper production and office product companies, printers, and publishers. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. RETAILING PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in merchandising finished goods and services primarily to individual consumers. These companies may include, for example, general merchandise retailers; drug and department stores; suppliers of goods and services for homes and yards; specialty retailers selling a single category of merchandise such as food, apparel, jewelry, toys, electronics, computers, or home improvement products; motor vehicle and marine dealers; warehouse membership clubs; mail order operations; and companies involved in alternative selling methods such as direct telephone marketing, mail order, membership warehouse clubs, computer, or video-based electronic systems. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. SOFTWARE AND COMPUTER SERVICES PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in research, design, production, or distribution of products or processes that relate to software or information-based services. These companies 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) for general use or use by certain industries or groups; companies that provide communications software; and companies that provide time-sharing services, computer consulting or facilities management services, and data communications services. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. TECHNOLOGY PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in offering, using, or developing products, processes, or services that will provide or will benefit significantly from technological advances and improvements. These companies may include, for example, companies that develop, produce, or distribute products or services in the computer, semi-conductor, electronics, communications, health care, and biotechnology sectors. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. TELECOMMUNICATIONS PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the development, manufacture, or sale of communications services or communications equipment. These companies may include, for example, companies that provide traditional local and long-distance telephone service or equipment; companies that provide cellular, paging, and local and wide area product networks or equipment; companies that provide satellite, microwave, and cable television or equipment; and companies involved in new technologies such as fiber optics, semiconductors, and data transmission. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. TRANSPORTATION PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in providing transportation services or companies principally engaged in the design, manufacture, distribution, or sale of transportation equipment. These companies may include, for example, companies involved in the movement of freight or people such as airline, railroad, ship, truck, and bus companies; equipment manufacturers (including makers of trucks, automobiles, planes, containers, railcars, or other modes of transportation and related products); parts suppliers; companies that provide leasing and maintenance for automobiles, trucks, containers, railcars, and planes; and companies that sell fuel-saving devices to the transportation industry and those that sell insurance and software developed primarily for transportation companies. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. UTILITIES GROWTH PORTFOLIO FMR normally invests the fund's assets primarily in common stocks. FMR normally invests at least 80% of the fund's assets in securities of companies principally engaged in the public utilities industry and companies deriving a majority of their revenues from their public utility operations. These companies may include, for example, companies that manufacture, produce, generate, transmit, or sell gas or electric energy; water supply, waste disposal and sewerage, and sanitary service companies; and companies involved in the communication field, including telephone, telegraph, satellite, microwave, and the provision of other communication facilities for the public benefit. FMR may invest the fund's assets in securities of foreign issuers in addition to securities of domestic issuers. Because the fund is considered non-diversified, FMR may invest a significant percentage of the fund's assets in a single issuer. In buying and selling securities for the fund, FMR relies on fundamental analysis of each issuer and its potential for success in light of its current financial condition, its industry position, and economic and market conditions. Factors considered include growth potential, earnings estimates, and management. FMR may lend the fund's securities to broker-dealers or other institutions to earn income for the fund. FMR may use various techniques, such as buying and selling futures contracts, to increase or decrease the fund's exposure to changing security prices or other factors that affect security values. If FMR's strategies do not work as intended, the fund may not achieve its objective. DESCRIPTION OF PRINCIPAL SECURITY TYPES EQUITY SECURITIES represent an ownership interest, or the right to acquire an ownership interest, in an issuer. Different types of equity securities provide different voting and dividend rights and priority in the event of the bankruptcy of the issuer. Equity securities include common stocks, preferred stocks, convertible securities, and warrants. PRINCIPAL INVESTMENT RISKS Many factors affect each fund's performance. A fund's share price changes daily based on changes in market conditions and interest rates and in response to other economic, political, or financial developments. A fund's reaction to these events will be affected by the types of securities in which the fund invests, the financial condition, industry and economic sector, and geographic location of an issuer, and the fund's level of investment in the securities of that issuer. Because FMR concentrates each fund's investments in a particular industry or group of industries, each fund's performance is expected to be closely tied to economic and market conditions within that industry or group of industries and to be more volatile than the performance of less concentrated funds. In addition, because FMR may invest a significant percentage of the assets of each fund (except Banking, Financial Services, and Home Finance) in a single issuer, the fund's performance could be closely tied to the market value of that one issuer and could be more volatile than the performance of more diversified funds. When you sell your shares of a fund, they could be worth more or less than what you paid for them. The following factors can significantly affect a fund's performance: STOCK MARKET VOLATILITY. The value of equity securities fluctuates in response to issuer, political, market, and economic developments. In the short term, equity prices can fluctuate dramatically in response to these developments. Different parts of the market and different types of equity securities can react differently to these developments. For example, large cap stocks can react differently from small cap stocks, and "growth" stocks can react differently from "value" stocks. Issuer, political, or economic developments can affect a single issuer, issuers within an industry or economic sector or geographic region, or the market as a whole. FOREIGN EXPOSURE. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations can involve additional risks relating to political, economic, or regulatory conditions in foreign countries. These risks include fluctuations in foreign currencies; withholding or other taxes; trading, settlement, custodial, and other operational risks; and the less stringent investor protection and disclosure standards of some foreign markets. All of these factors can make foreign investments, especially those in emerging markets, more volatile and potentially less liquid than U.S. investments. In addition, foreign markets can perform differently from the U.S. market. INDUSTRY CONCENTRATION. Market conditions, interest rates, and economic, regulatory, or financial developments could significantly affect a single industry or a group of related industries, and the securities of companies in that industry or group of industries could react similarly to these or other developments. The AIR TRANSPORTATION industry can be significantly affected by competition within the industry, domestic and foreign economies, government regulation, labor relations, and the price of fuel. 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. The AUTOMOTIVE industry can be highly cyclical, and companies in the industry may suffer periodic operating losses. The industry can be significantly affected by labor relations and fluctuating component prices. While most of the major manufacturers are large, financially strong companies, many others are small and can be non-diversified in both product line and customer base. The BANKINg industry can be significantly affected by the recent adoption of legislation that has reduced the separation between commercial and investment banking businesses and changed the laws governing capitalization and the savings and loan industry. While providing diversification, this new legislation could expose banks to well-established competitors, particularly as the historical distinctions between banks and other financial institutions erode. Increased competition can also result from the broadening of regional and national interstate banking powers, which has already reduced the number of publicly traded banks. In addition, general economic conditions are important to banks that face exposure to credit losses and can be significantly affected by changes in interest rates. The BIOTECHNOLOGY industry can be significantly affected by patent considerations, intense competition, rapid technological change and obsolescence, and government regulation. Biotechnology companies can have persistent losses during a new product's transition from development to production, and revenue patterns can be erratic. The BROKERAGE AND INVESTMENT MANAGEMENT industry can be significantly affected by changes in regulations, brokerage commission structure, and a competitive environment combined with the high operating leverage inherent in companies in this industry. The performance of companies in this industry can be closely tied to the stock and bond markets and can suffer during market declines. Revenues can depend on overall market activity. The BUSINESS SERVICES AND OUTSOURCING industry is subject to continued demand for such services as companies and other organizations seek alternative, cost-effective means to meet their economic goals. The industry can be significantly affected by competitive pressures, such as technological developments, fixed-rate pricing, and the ability to attract and retain skilled employees. The CHEMICAL industry can be significantly affected by intense competition, product obsolescence, raw materials prices, and government regulation. As regulations are developed and enforced, chemical companies could be required to alter or cease production of a product, to pay fines, 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 can be risks associated with their production, handling, and disposal. The COMPUTER industry can be significantly affected by competitive pressures. For example, as product cycles shorten and manufacturing capacity increases, these companies could become increasingly subject to aggressive pricing, which hampers profitability. Profitability can also be affected by changing domestic and international demand, research and development costs, and product obsolescence. The CONSTRUCTION AND HOUSING industry can be significantly affected by changes in government spending on housing subsidies, public works, and transportation facilities such as highways and airports, as well as changes in interest rates, consumer confidence and spending, taxation, demographic patterns, housing starts, and the level of new and existing home sales. The CONSUMER industries can be significantly affected by the performance of the overall economy, interest rates, competition, and consumer confidence. Success can depend 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. The CYCLICAL industries can be significantly affected by general economic trends, including employment, economic growth, and interest rates, changes in consumer sentiment and spending, commodity prices, legislation, government regulation and spending, import controls, and worldwide competition. For example, commodity price declines and unit volume reductions resulting from an over-supply of materials used in cyclical industries can adversely affect those industries. Furthermore, a company in the cyclical industries can be subject to liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. The DEFENSE AND AEROSPACE industry can be significantly affected by government defense and aerospace regulation and spending policies because companies involved in the defense and aerospace industry rely to a large extent on U.S. (and other) government demand for their products and services. Defense spending is currently under pressure from efforts to control the U.S. budget deficit. The DEVELOPING COMMUNICATIONS industry can be significantly affected by failure to obtain, or delays in obtaining, financing or regulatory approval, intense competition, product compatibility, consumer preferences, and rapid obsolescence. The ELECTRONICS industry can be significantly affected by rapid obsolescence, intense competition, and global demand. The ENERGY industry can be significantly affected by fluctuations in price and supply of energy fuels caused by events relating to international politics, energy conservation, the success of exploration projects, and tax and other government regulations. The ENERGY SERVICE industry can be significantly affected by the supply of and demand for specific products or services, the supply of and demand for oil and gas, the price of oil and gas, exploration and production spending, government regulation, world events, and economic conditions. The ENVIRONMENTAL SERVICES industry can be significantly affected by intense competition and legislation resulting in more strict government regulations and enforcement policies for both commercial and governmental generators of waste materials as well as specific expenditures designated for remedial cleanup efforts. As regulations are developed and enforced, companies could be required to alter or cease production of a product or service or to agree to restrictions on their operations. In addition, hazardous materials involved in environmental services can present significant liability risk. The FINANCIAL SERVICES industries are subject to extensive government regulation which can 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 can be 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 affect the financial services industries. Insurance companies can be subject to severe price competition. The financial services industries are currently undergoing relatively rapid change as existing distinctions between financial service segments become less clear. For example, recent business combinations have included insurance, finance, and securities brokerage under single ownership. Some primarily retail corporations have expanded into securities and insurance industries. The FOOD AND AGRICULTURE industry can be significantly affected by demographic and product trends, competitive pricing, food fads, marketing campaigns, and environmental factors. In the United States, the agricultural products industry is subject to regulation by numerous federal and state government agencies. The GOLD industry can be significantly affected by international monetary and political developments such as currency devaluations or revaluations, central bank movements, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. The prices of gold and other precious metal mining securities can be subject to substantial fluctuations over short periods of time. The HEALTH CARE industries are subject to government regulation and reimbursement rates, as well as government approval of products and services, which could have a significant effect on price and availability. Furthermore, the types of products or services produced or provided by health care companies quickly can become obsolete. In addition, pharmaceutical companies and other companies in the health care industries can be significantly affected by patent expirations. The HOME FINANCE industry can be significantly affected by regulatory changes, interest rate movements, home mortgage demand, refinancing activity, and residential delinquency trends. 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. Change continues in the origination, packaging, selling, holding, and insuring of home finance products. The INDUSTRIAL EQUIPMENT industry can be significantly affected by overall capital spending levels, which are influenced by an individual company's profitability and broader factors such as interest rates and foreign competition. The industrial equipment industry can also be significantly affected by economic cycles, technical obsolescence, labor relations, and government regulations. The INDUSTRIAL MATERIALS industry can be 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 industrial materials has exceeded demand as a result of over-building or economic downturns, which has led to commodity price declines and unit price reductions. Companies in the industry can also be adversely affected by liability for environmental damage, depletion of resources, and mandated expenditures for safety and pollution control. The INSURANCE industry can be significantly affected by interest rates, general economic conditions, and price and marketing competition. Property and casualty insurance profits can be affected by weather catastrophes and other natural disasters. Life and health insurance profits can be affected by mortality and morbidity rates. Insurance companies can be adversely affected by inadequacy of cash reserves, the inability to collect from reinsurance carriers, liability for the coverage of environmental clean-up costs from past years, and as yet unanticipated liabilities. Also, insurance companies are subject to extensive government regulation, including the imposition of maximum rate levels, and can be adversely affected by proposed or potential tax law changes. The LEISURE industry can be significantly affected by changing consumer tastes and intense competition. The industry has reacted strongly to technological developments and to the threat of government regulation. The MEDICAL DELIVERY industry is subject to extensive government regulation and can be significantly affected by government reimbursement for medical expenses. Federal and state governments provide a substantial percentage of revenues to health care service providers via Medicare and Medicaid. The industry can also be significantly affected by rising costs of medical products and services, pricing pressure from health maintenance organizations, and an increased emphasis on outpatient services. The MEDICAL EQUIPMENT AND SYSTEMS industry can be significantly affected by patent considerations, rapid technological change and obsolescence, government regulation, and government reimbursement for medical expenses. The MULTIMEDIA industry can be significantly affected by the federal deregulation of cable and broadcasting, competitive pressures, and government regulation, including regulation of the concentration of investment in AM, FM, or TV stations. The NATURAL GAS industry is subject to changes in price and supply of both conventional and alternative energy sources. Swift price and supply fluctuations can be caused by events relating to international politics, energy conservation, the success of energy source exploration projects, and tax and other domestic and foreign government regulations. The NATURAL RESOURCES industries can be significantly affected by events relating to international political and economic developments, energy conservation, the success of exploration projects, and tax and other government regulations. The PAPER AND FOREST PRODUCTS industry can be significantly affected by the health of the economy, worldwide production capacity, and interest rates, which can affect product pricing, costs, and operating margins. These variables can also affect the level of industry and consumer capital spending for paper and forest products. The RETAIL industry can be significantly affected by consumer spending, which is affected by general economic conditions and consumer confidence levels. The retailing industry is highly competitive, and a company's success can be tied to its ability to anticipate changing consumer tastes. The SOFTWARE AND COMPUTER SERVICES industry can be significantly affected by competitive pressures. For example, an increasing number of companies and new product offerings can lead to aggressive pricing and slower selling cycles. The TECHNOLOGY industries can be significantly affected by obsolescence of existing technology, short product cycles, falling prices and profits, and competition from new market entrants. The TELECOMMUNICATIONS industry, particularly telephone operating companies, is subject to both federal and state government regulations of rates of return and services that may be offered. Many telecommunications companies fiercely compete for market share. The TRANSPORTATION industry can be significantly affected by changes in the economy, fuel prices, labor relations, and insurance costs. The trend in the United States has been to deregulate the transportation industry, which could have a favorable long-term effect, but future government decisions could adversely affect transportation companies. The UTILITIES industries can be significantly affected by government regulation, financing difficulties, supply and demand of services or fuel, and natural resource conservation. ISSUER-SPECIFIC CHANGES. Changes in the financial condition of an issuer, changes in specific economic or political conditions that affect a particular type of security or issuer, and changes in general economic or political conditions can affect the value of an issuer's securities. The value of securities of smaller, less well-known issuers can be more volatile than that of larger issuers. Smaller issuers can have more limited product lines, markets, or financial resources. In response to market, economic, political, or other conditions, FMR may temporarily use a different investment strategy for defensive purposes. If FMR does so, different factors could affect a fund's performance and the fund may not achieve its investment objective. THE MONEY MARKET FUND INVESTMENT OBJECTIVE MONEY MARKET PORTFOLIO seeks to provide high current income, consistent with preservation of capital and liquidity. PRINCIPAL INVESTMENT STRATEGIES FMR invests the fund's assets in U.S. dollar-denominated money market securities of domestic and foreign issuers and repurchase agreements. FMR also may enter into reverse repurchase agreements for the fund. FMR invests at least 80% of the fund's assets in money market instruments. FMR will invest more than 25% of the fund's total assets in the financial services industry. In buying and selling securities for the fund, FMR complies with industry-standard requirements for money market funds regarding the quality, maturity, and diversification of the fund's investments. FMR stresses maintaining a stable $1.00 share price, liquidity, and income. DESCRIPTION OF PRINCIPAL SECURITY TYPES MONEY MARKET SECURITIES are high-quality, short-term securities that pay a fixed, variable, or floating interest rate. Securities are often specifically structured so that they are eligible investments for a money market fund. For example, in order to satisfy the maturity restrictions for a money market fund, some money market securities have demand or put features, which have the effect of shortening the security's maturity. Money market securities include bank certificates of deposit, bank acceptances, bank time deposits, notes, commercial paper, and U.S. Government securities. A REPURCHASE AGREEMENT is an agreement to buy a security at one price and a simultaneous agreement to sell it back at an agreed-upon price. PRINCIPAL INVESTMENT RISKS Many factors affect the fund's performance. The fund's yield will change daily based on changes in interest rates and other market conditions. Although the fund is managed to maintain a stable $1.00 share price, there is no guarantee that the fund will be able to do so. For example, a major increase in interest rates or a decrease in the credit quality of the issuer of one of the fund's investments could cause the fund's share price to decrease. While the fund will be charged premiums by a mutual insurance company for coverage of specified types of losses related to default or bankruptcy on certain securities, the fund may incur losses regardless of the insurance. The following factors can significantly affect the fund's performance: INTEREST RATE CHANGES. Money market securities have varying levels of sensitivity to changes in interest rates. In general, the price of a money market security can fall when interest rates rise and can rise when interest rates fall. Securities with longer maturities can be more sensitive to interest rate changes. Short-term securities tend to react to changes in short-term interest rates. FOREIGN EXPOSURE. Issuers located in foreign countries and entities located in foreign countries that provide credit support or a maturity-shortening structure can involve increased risks. Extensive public information about the issuer or provider may not be available and unfavorable political, economic, or governmental developments could affect the value of the security. FINANCIAL SERVICES EXPOSURE. Financial services companies are highly dependent on the supply of short-term financing. The value of securities of issuers in the financial services sector can be sensitive to changes in government regulation and interest rates and to economic downturns in the United States and abroad. ISSUER-SPECIFIC CHANGES. Changes in the financial condition of an issuer, changes in specific economic or political conditions that affect a particular type of issuer, and changes in general economic or political conditions can affect the credit quality or value of an issuer's securities. Entities providing credit support or a maturity-shortening structure also can be affected by these types of changes. If the structure of a security fails to function as intended, the security could decline in value. FUNDAMENTAL INVESTMENT POLICIES The policies discussed below are fundamental, that is, subject to change only by shareholder approval. AIR TRANSPORTATION PORTFOLIO invests primarily in companies engaged in the regional, national, and international movement of passengers, mail and freight via aircraft. AUTOMOTIVE PORTFOLIO invests primarily in companies engaged in the manufacture, marketing or sale of automobiles, trucks, specialty vehicles, parts, tires, and related services. BANKING PORTFOLIO invests primarily in companies engaged in accepting deposits and making commercial and principally non-mortgage consumer loans. BIOTECHNOLOGY PORTFOLIO invests primarily in companies engaged in the research, development, 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. BUSINESS SERVICES AND OUTSOURCING PORTFOLIO invests primarily in companies that provide business-related services to companies and other organizations. 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 INDUSTRIES PORTFOLIO invests primarily in companies engaged in the manufacture and distribution of goods to consumers both domestically and internationally. CYCLICAL INDUSTRIES PORTFOLIO invests primarily in companies engaged in the research, development, manufacture, distribution, supply, or sale of materials, equipment, products or services related to cyclical industries. 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 that provide financial services to consumers and industry. 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. 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. 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 industrial 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. MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO invests primarily in companies engaged in research, development, manufacture, distribution, supply or sale of medical equipment and devices and related technologies. 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. NATURAL RESOURCES PORTFOLIO invests primarily in companies that own or develop natural resources, or supply goods and services to such companies. 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. 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 GROWTH 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. EACH STOCK FUND seeks capital appreciation. With the exception of Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources, each stock fund seeks to achieve its investment objective by investing primarily in equity securities, including common stocks and securities convertible into common stocks, and for Gold, in certain precious metals. For each stock fund (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources), FMR does not place any emphasis on income when selecting securities, 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 (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources) may temporarily invest substantially in investment-grade debt securities. VALUING SHARES Each fund is open for business each day the New York Stock Exchange (NYSE) is open. Each fund's net asset value per share (NAV) is the value of a single share. Fidelity normally calculates each stock fund's NAV as of each hour, from 10:00 a.m. to the close of business of the NYSE, normally 4:00 p.m. Eastern time. On days when the NYSE closes early, Fidelity will calculate the last NAV for the stock funds as of the close of the NYSE. In addition, Fidelity will not calculate a stock fund's NAV if trading on the NYSE is restricted or as permitted by the Securities and Exchange Commission (SEC). Fidelity normally calculates the money market fund's NAV as of the close of the NYSE, normally 4:00 p.m. Eastern time. However, the money market fund's NAV may be calculated earlier if trading on the NYSE is restricted or as permitted by the SEC. Each fund's assets are valued as of these times for the purpose of computing the fund's NAV. To the extent that each fund's assets are traded in other markets on days when the NYSE is closed, the value of the fund's assets may be affected on days when the fund is not open for business. In addition, trading in some of a fund's assets may not occur on days when the fund is open for business. The money market fund's assets are valued on the basis of amortized cost. Each stock fund's assets are valued primarily on the basis of market quotations. Certain short-term securities are valued on the basis of amortized cost. If market quotations are not readily available for a security or if a security's value has been materially affected by events occurring after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), that security may be valued by another method that the Board of Trustees believes accurately reflects fair value. A security's valuation may differ depending on the method used for determining value. SHAREHOLDER INFORMATION BUYING AND SELLING SHARES GENERAL INFORMATION Fidelity Investments(registered trademark) 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-advantaged retirement plans for individuals investing on their own or through their employer. For account, product and service information, please use the following web site and phone numbers: (small solid bullet) For information over the Internet, visit Fidelity's web site at www.fidelity.com. (small solid bullet) For accessing account information automatically by phone, use Fidelity Automated Service Telephone (FAST SM), 1-800-544-5555. (small solid bullet) For exchanges, redemptions, and account assistance, 1-800-544-6666. (small solid bullet) For mutual fund and brokerage information, 1-800-544-6666. (small solid bullet) For retirement information, 1-800-544-4774. (small solid bullet) TDD - Service for the Deaf and Hearing-Impaired, 1-800-544-0118 (9:00 a.m. - 9:00 p.m. Eastern time). Please use the following addresses: BUYING SHARES Fidelity Investments P.O. Box 770001 Cincinnati, OH 45277-0002 OVERNIGHT EXPRESS Fidelity Investments 2300 Litton Lane - KH1A Hebron, KY 41048 SELLING SHARES Fidelity Investments P.O. Box 660602 Dallas, TX 75266-0602 OVERNIGHT EXPRESS Fidelity Investments Attn: Redemptions - CP6I 400 East Las Colinas Blvd. Irving, TX 75039-5587 You may buy or sell shares of the funds through a retirement account or an investment professional. If you invest through a retirement account or an investment professional, the procedures for buying, selling, and exchanging shares of a fund and the account features and policies may differ. Additional fees may also apply to your investment in a fund, including a transaction fee if you buy or sell shares of the fund through a broker or other investment professional. Certain methods of contacting Fidelity, such as by telephone or electronically, may be unavailable or delayed (for example, during periods of unusual market activity). In addition, the level and type of service available may be restricted based on criteria established by Fidelity. The different ways to set up (register) your account with Fidelity are listed in the following table. WAYS TO SET UP YOUR ACCOUNT INDIVIDUAL OR JOINT TENANT FOR YOUR GENERAL INVESTMENT NEEDS RETIREMENT FOR TAX-ADVANTAGED RETIREMENT SAVINGS (solid bullet) TRADITIONAL INDIVIDUAL RETIREMENT ACCOUNTS (IRAS) (solid bullet) ROTH IRAS (solid bullet) ROLLOVER IRAS (solid bullet) 401(K) PLANS AND CERTAIN OTHER 401(A)-QUALIFIED PLANS (solid bullet) KEOGH PLANS (solid bullet) SIMPLE IRAS (solid bullet) SIMPLIFIED EMPLOYEE PENSION PLANS (SEP-IRAS) (solid bullet) SALARY REDUCTION SEP-IRAS (SARSEPS) (solid bullet) 403(B) CUSTODIAL ACCOUNTS (solid bullet) DEFERRED COMPENSATION PLANS (457 PLANS) GIFTS OR TRANSFERS TO A MINOR (UGMA, UTMA) TO INVEST FOR A CHILD'S EDUCATION OR OTHER FUTURE NEEDS TRUST FOR MONEY BEING INVESTED BY A TRUST BUSINESS OR ORGANIZATION FOR INVESTMENT NEEDS OF CORPORATIONS, ASSOCIATIONS, PARTNERSHIPS OR OTHER GROUPS BUYING SHARES The price to buy one share of each fund is the fund's offering price or the fund's NAV, depending on whether you pay a sales charge. If you pay a sales charge, your price will be the fund's offering price. When you buy shares of a fund at the offering price, Fidelity deducts the appropriate sales charge and invests the rest in the fund. If you qualify for a sales charge waiver, your price will be the fund's NAV. The offering price of each fund is its NAV divided by the difference between one and the applicable sales charge percentage. The maximum sales charge is 3.00% of the offering price. Your shares will be bought at the next offering price or NAV, as applicable, calculated after your investment is received in proper form. Short-term or excessive trading into and out of a fund may harm performance by disrupting portfolio management strategies and by increasing expenses. Accordingly, a fund may reject any purchase orders, including exchanges, particularly from market timers or investors who, in FMR's opinion, have a pattern of short-term or excessive trading or whose trading has been or may be disruptive to that fund. For these purposes, FMR may consider an investor's trading history in that fund or other Fidelity funds, and accounts under common ownership or control. Each fund may stop offering shares completely or may offer shares only on a limited basis, for a period of time or permanently. When you place an order to buy shares, note the following: (small solid bullet) All of your purchases must be made in U.S. dollars and checks must be drawn on U.S. banks. (small solid bullet) Fidelity does not accept cash. (small solid bullet) When making a purchase with more than one check, each check must have a value of at least $50. (small solid bullet) Fidelity reserves the right to limit the number of checks processed at one time. (small solid bullet) If your check does not clear, your purchase will be canceled and you could be liable for any losses or fees a fund or Fidelity has incurred. (small solid bullet) If you do not specify a particular stock fund, your investment will be made in the money market fund until Fidelity receives instructions in proper form from you. 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 a fund is priced on the following business day. If payment is not received by that time, the order will be canceled and the financial institution could be held liable for resulting fees or losses. MINIMUMS TO OPEN AN ACCOUNT $2,500 For certain Fidelity retirement accountsA $500 TO ADD TO AN ACCOUNT $250 Through regular investment plans $100 MINIMUM BALANCE $2,000 For certain Fidelity retirement accountsA $500 A FIDELITY TRADITIONAL IRA, ROTH IRA, ROLLOVER IRA, SEP-IRA, AND KEOGH ACCOUNTS. There is no minimum account balance or initial or subsequent purchase minimum for investments through Fidelity Portfolio Advisory Services SM, a qualified state tuition program, certain Fidelity retirement accounts funded through salary deduction, or accounts opened with the proceeds of distributions from such retirement accounts. In addition, each fund may waive or lower purchase minimums in other circumstances. KEY INFORMATION PHONE 1-800-544-6666 TO OPEN AN ACCOUNT (small solid bullet) Exchange from another Fidelity fund. Call the phone number at left. TO ADD TO AN ACCOUNT (small solid bullet) Exchange from another Fidelity fund. Call the phone number at left. (small solid bullet) Use Fidelity Money Line(registered trademark) to transfer from your bank account. INTERNET WWW.FIDELITY.COM TO OPEN AN ACCOUNT (small solid bullet) Complete and sign the application. Make your check payable to the complete name of the fund. Mail to the address under "Mail" below. TO ADD TO AN ACCOUNT (small solid bullet) Exchange from another Fidelity fund. (small solid bullet) Use Fidelity Money Line to transfer from your bank account. MAIL FIDELITY INVESTMENTS TO OPEN AN ACCOUNT P.O. BOX 770001 CINCINNATI, (small solid bullet) Complete OH 45277-0002 and sign the application. Make your check payable to the complete name of the fund. Mail to the address at left. TO ADD TO AN ACCOUNT (small solid bullet) Make your check payable to the complete name of the fund. Indicate your fund account number on your check and mail to the address at left. (small solid bullet) Exchange from another Fidelity fund. Send a letter of instruction to the address at left, including your name, the funds' names, the fund account numbers, and the dollar amount or number of shares to be exchanged. IN PERSON TO OPEN AN ACCOUNT (small solid bullet) Bring your application and check to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. TO ADD TO AN ACCOUNT (small solid bullet) Bring your check to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. WIRE TO OPEN AN ACCOUNT (small solid bullet) Call 1-800-544-6666 to set up your account and to arrange a wire transaction. (small solid bullet) Wire within 24 hours to: Bankers Trust Company, Bank Routing # 021001033, Account # 00163053. (small solid bullet) Specify the complete name of the fund and include your new fund account number and your name. TO ADD TO AN ACCOUNT (small solid bullet) Wire to: Bankers Trust Company, Bank Routing # 021001033, Account # 00163053. (small solid bullet) Specify the complete name of the fund and include your fund account number and your name. AUTOMATICALLY TO OPEN AN ACCOUNT (small solid bullet) Not available. TO ADD TO AN ACCOUNT (small solid bullet) Use Fidelity Automatic Account Builder(registered trademark) or Direct Deposit. (small solid bullet) Direct Deposit is not available for Select stock funds. (small solid bullet) Use Fidelity Automatic Exchange Service to exchange from a Fidelity money market fund. SELLING SHARES The price to sell one share of the money market fund is the fund's NAV. The price to sell one share of each stock fund is the fund's NAV minus the applicable redemption fee (trading fee). Each stock fund will deduct a trading fee of $7.50 or 0.75%, depending on how long you held your shares, from the redemption amount when you sell your shares. For stock fund shares held 29 days or less, the trading fee is equal to 0.75% of the redemption amount. For stock fund shares held 30 days or more, the trading fee is equal to the lesser of $7.50 or 0.75% of the redemption amount. This fee is paid to the fund rather than Fidelity, and is designed to offset the brokerage commissions, market impact, and other costs associated with fluctuations in fund asset levels and cash flow caused by shareholder trading. If you bought shares on different days, the shares you held longest will be redeemed first for purposes of determining the trading fee. The trading fee does not apply to shares that were acquired through reinvestment of distributions. Your shares will be sold at the next NAV calculated after your order is received in proper form, minus the applicable trading fee. 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: (small solid bullet) You wish to sell more than $100,000 worth of shares; (small solid bullet) Your account registration has changed within the last 15 or 30 days, depending on your account; (small solid bullet) The check is being mailed to a different address than the one on your account (record address); (small solid bullet) The check is being made payable to someone other than the account owner; or (small solid 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. When you place an order to sell shares, note the following: (small solid bullet) If you are selling some but not all of your shares, leave at least $2,000 worth of shares in the account to keep it open ($500 for retirement accounts), except accounts not subject to account minimums. (small solid bullet) Normally, Fidelity will process redemptions by the next business day, but Fidelity may take up to seven days to process redemptions if making immediate payment would adversely affect a fund. (small solid bullet) Redemption proceeds may be delayed until money from prior purchases sufficient to cover your redemption has been received and collected. This can take up to seven business days after a purchase. (small solid bullet) Redemptions may be suspended or payment dates postponed when the NYSE is closed (other than weekends or holidays), when trading on the NYSE is restricted, or as permitted by the SEC. (small solid bullet) Redemption proceeds may be paid in securities or other property rather than in cash if FMR determines it is in the best interests of a fund. (small solid bullet) You will not receive interest on amounts represented by uncashed redemption checks. (small solid bullet) Unless otherwise instructed, Fidelity will send a check to the record address. KEY INFORMATION PHONE 1-800-544-6666 (small solid bullet) Call the phone number at left to initiate a wire transaction or to request a check for your redemption. (small solid bullet) Use Fidelity Money Line to transfer to your bank account. (small solid bullet) Exchange to another Fidelity fund. Call the phone number at left. INTERNET WWW.FIDELITY.COM (small solid bullet) Exchange to another Fidelity fund. (small solid bullet) Use Fidelity Money Line to transfer to your bank account. MAIL FIDELITY INVESTMENTS INDIVIDUAL, JOINT TENANT, P.O. BOX 660602 DALLAS, TX SOLE PROPRIETORSHIP, UGMA, 75266-0602 UTMA (small solid bullet) Send a letter of instruction to the address at left, including your name, the fund's name, your fund account number, and the dollar amount or number of shares to be sold. The letter of instruction must be signed by all persons required to sign for transactions, exactly as their names appear on the account. RETIREMENT ACCOUNT (small solid bullet) The account owner should complete a retirement distribution form. Call 1-800-544-6666 to request one. TRUST (small solid bullet) Send a letter of instruction to the address at left, including the trust's name, the fund's name, the trust's fund account number, and the dollar amount or number of shares to be sold. The trustee must sign the letter of instruction 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. BUSINESS OR ORGANIZATION (small solid bullet) Send a letter of instruction to the address at left, including the firm's name, the fund's name, the firm's fund account number, and the dollar amount or number of shares to be sold. At least one person authorized by corporate resolution to act on the account must sign the letter of instruction. (small solid bullet) Include a corporate resolution with corporate seal or a signature guarantee. EXECUTOR, ADMINISTRATOR, CONSERVATOR, GUARDIAN (small solid bullet) Call 1-800-544-6666 for instructions. IN PERSON INDIVIDUAL, JOINT TENANT, SOLE PROPRIETORSHIP, UGMA, UTMA (small solid bullet) Bring a letter of instruction to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. The letter of instruction must be signed by all persons required to sign for transactions, exactly as their names appear on the account. RETIREMENT ACCOUNT (small solid bullet) The account owner should complete a retirement distribution form. Visit a Fidelity Investor Center to request one. Call 1-800-544-9797 for the center nearest you. TRUST (small solid bullet) Bring a letter of instruction to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. The trustee must sign the letter of instruction 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. BUSINESS OR ORGANIZATION (small solid bullet) Bring a letter of instruction to a Fidelity Investor Center. Call 1-800-544-9797 for the center nearest you. At least one person authorized by corporate resolution to act on the account must sign the letter of instruction. (small solid bullet) Include a corporate resolution with corporate seal or a signature guarantee. EXECUTOR, ADMINISTRATOR, CONSERVATOR, GUARDIAN (small solid bullet) Visit a Fidelity Investor Center for instructions. Call 1-800-544-9797 for the center nearest you. AUTOMATICALLY (small solid bullet) Use Personal Withdrawal Service to set up periodic redemptions from your stock fund account. EXCHANGING SHARES An exchange involves the redemption of all or a portion of the shares of one fund and the purchase of shares of another fund. 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 policies and restrictions governing exchanges: (small solid bullet) The fund you are exchanging into must be available for sale in your state. (small solid bullet) You may exchange only between accounts that are registered in the same name, address, and taxpayer identification number. (small solid bullet) Before exchanging into a fund, read its prospectus. (small solid bullet) You may pay a $7.50 fee for each exchange out of the stock funds, unless you place your transaction through Fidelity's automated exchange services. (small solid bullet) Exchanges may have tax consequences for you. (small solid bullet) Although there is no limit on the number of exchanges you may make between the Select funds, the funds may enact limitations in the future. Each fund may 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 will be counted together for purposes of the four exchange limit. (small solid bullet) Each fund may reject exchange purchases in excess of 1% of its net assets or $1 million, whichever is less. (small solid bullet) The exchange limit may be modified for accounts held by certain institutional retirement plans to conform to plan exchange limits and Department of Labor regulations. See your plan materials for further information. (small solid bullet) Each fund may 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. The funds may terminate or modify the exchange privileges in the future. Other funds may have different exchange restrictions, and may impose trading fees of up to 3.00% of the amount exchanged. Check each fund's prospectus for details. ACCOUNT FEATURES AND POLICIES FEATURES The following features are available to buy and sell shares of the funds. AUTOMATIC INVESTMENT AND WITHDRAWAL PROGRAMS. Fidelity offers convenient services that let you automatically transfer money into your account, between accounts, or out of your account. While automatic investment programs 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. Automatic withdrawal or exchange programs can be a convenient way to provide a consistent income flow or to move money between your investments.
FIDELITY AUTOMATIC ACCOUNT BUILDER TO MOVE MONEY FROM YOUR BANK ACCOUNT TO A FIDELITY FUND. MINIMUM FREQUENCY PROCEDURES $100 Monthly or quarterly (small solid bullet) To set up for a new account, complete the appropriate section on the fund application. (small solid bullet) To set up for existing accounts, call 1-800-544-6666 or visit Fidelity's web site for an application. (small solid bullet) To make changes, 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 FUND. MINIMUM FREQUENCY PROCEDURES $100 Every pay period (small solid bullet) Not available for Select stock funds. (small solid bullet) To set up for a new account, check the appropriate box on the fund application. (small solid bullet) To set up for an existing account, call 1-800-544-6666 or visit Fidelity's web site for an authorization form. (small solid bullet) To make changes you will need a new authorization form. Call 1-800-544-6666 or visit Fidelity's web site to obtain one. FIDELITY AUTOMATIC EXCHANGE SERVICE TO MOVE MONEY FROM A FIDELITY MONEY MARKET FUND TO ANOTHER FIDELITY FUND. MINIMUM FREQUENCY PROCEDURES $100 Monthly, bimonthly, (small solid bullet) To set quarterly, or annually up, call 1-800-544-6666 after both accounts are opened. (small solid bullet) To make changes, call 1-800-544-6666 at least three business days prior to your next scheduled exchange date.
PERSONAL WITHDRAWAL SERVICE TO SET UP PERIODIC REDEMPTIONS FROM YOUR STOCK FUND ACCOUNT TO YOU OR TO YOUR BANK ACCOUNT. FREQUENCY PROCEDURES Monthly (small solid bullet) To set up, call 1-800-544-6666. (small solid bullet) To make changes, call Fidelity at 1-800-544-6666 at least three business days prior to your next scheduled withdrawal date. (small solid bullet) Because of each fund's front-end sales charge, you may not want to set up a systematic withdrawal program when you are buying shares on a regular basis. OTHER FEATURES. The following other features are also available to buy and sell shares of the funds. WIRE TO PURCHASE AND SELL SHARES VIA THE FEDERAL RESERVE WIRE SYSTEM. (small solid bullet) You must sign up for the wire feature before using it. Complete the appropriate section on the application when opening your account, or call 1-800-544-6666 to add the feature after your account is opened. Call 1-800-544-6666 before your first use to verify that this feature is set up on your account. (small solid bullet) To sell shares by wire, you must designate the U.S. commercial bank account(s) into which you wish the redemption proceeds deposited. FIDELITY MONEY LINE TO TRANSFER MONEY BETWEEN YOUR BANK ACCOUNT AND YOUR FUND ACCOUNT. (small solid bullet) You must sign up for the Money Line feature before using it. Complete the appropriate section on the application and then call 1-800-544-6666 or visit Fidelity's web site before your first use to verify that this feature is set up on your account. (small solid bullet) Most transfers are complete within three business days of your call. (small solid bullet) Minimum purchase: $100 (small solid bullet) Maximum purchase: $100,000 FIDELITY ON-LINE XPRESS+(registered trademark) TO MANAGE YOUR INVESTMENTS THROUGH YOUR PC. CALL 1-800-544-0240 OR VISIT FIDELITY'S WEB SITE FOR MORE INFORMATION. (small solid bullet) For account balances and holdings; (small solid bullet) To review recent account history; (small solid bullet) For mutual fund and brokerage trading; and (small solid bullet) For access to research and analysis tools. FIDELITY ONLINE TRADING TO ACCESS AND MANAGE YOUR ACCOUNT OVER THE INTERNET AT FIDELITY'S WEB SITE. (small solid bullet) For account balances and holdings; (small solid bullet) To review recent account history; (small solid bullet) To obtain quotes; (small solid bullet) For mutual fund and brokerage trading; and (small solid bullet) To access third-party research on companies, stocks, mutual funds and the market. FAST TO ACCESS AND MANAGE YOUR ACCOUNT AUTOMATICALLY BY PHONE USING TOUCH TONE OR SPEECH RECOGNITION. CALL 1-800-544-5555. (small solid bullet) For account balances and holdings; (small solid bullet) For mutual fund and brokerage trading; (small solid bullet) To obtain quotes; (small solid bullet) To review orders and mutual fund activity; and (small solid bullet) To change your personal identification number (PIN). POLICIES The following policies apply to you as a shareholder. STATEMENTS AND REPORTS that Fidelity sends to you include the following: (small solid bullet) Confirmation statements (after transactions affecting your account balance except reinvestment of distributions in the fund or another fund and certain transactions through automatic investment or withdrawal programs). (small solid bullet) Monthly or quarterly account statements (detailing account balances and all transactions completed during the prior month or quarter). (small solid bullet) Financial reports (every six months). To reduce expenses, only one copy of most financial reports and prospectuses will be mailed to your household, even if you have more than one account in a fund. Call Fidelity at 1-800-544-8544 if you need additional copies of financial reports or prospectuses. Electronic copies of most financial reports and prospectuses are available at Fidelity's web site. To participate in Fidelity's electronic delivery program, call Fidelity or visit Fidelity's web site for more information. You may initiate many TRANSACTIONS BY TELEPHONE OR ELECTRONICALLY. Fidelity will not be responsible for any losses resulting from unauthorized transactions if it follows reasonable security procedures designed to verify the identity of the investor. Fidelity will request personalized security codes or other information, and may also record calls. For transactions conducted through the Internet, Fidelity recommends the use of an Internet browser with 128-bit encryption. You should verify the accuracy of your confirmation statements immediately after you receive them. If you do not want the ability to sell and exchange by telephone, call Fidelity for instructions. 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. Fidelity may deduct an ANNUAL MAINTENANCE FEE of $12.00 from accounts with a value of less than $2,500 (including any amount paid as a sales charge), subject to an annual maximum charge of $24.00 per shareholder. It is expected that accounts will be valued on the second Friday in November of each year. Accounts opened after September 30 will not be subject to the fee for that year. The fee, which is payable to Fidelity, is designed to offset in part the relatively higher costs of servicing smaller accounts. This fee will not be deducted from Fidelity brokerage accounts, retirement accounts (except non-prototype retirement accounts), accounts using regular investment plans, or if total assets with Fidelity exceed $30,000. Eligibility for the $30,000 waiver is determined by aggregating accounts with Fidelity maintained by Fidelity Service Company, Inc. or FBSI which are registered under the same social security number or which list the same social security number for the custodian of a Uniform Gifts/Transfers to Minors Act account. If your ACCOUNT BALANCE falls below $2,000 (except accounts not subject to account minimums), you will be given 30 days' notice to reestablish the minimum balance. If you do not increase your balance, Fidelity may close your account and send the proceeds to you. Your shares will be sold at the NAV, minus the applicable trading fee for the stock funds, on the day your account is closed. Fidelity may charge a FEE FOR CERTAIN SERVICES, such as providing historical account documents. DIVIDENDS AND CAPITAL GAIN DISTRIBUTIONS Each fund earns dividends, interest, and other income from its investments, and distributes this income (less expenses) to shareholders as dividends. Each fund also realizes capital gains from its investments, and distributes these gains (less any losses) to shareholders as capital gain distributions. Each stock fund normally pays dividends and capital gain distributions in April and December. Distributions you receive from the money market fund consist primarily of dividends. The money market fund normally declares dividends daily and pays them monthly. EARNING DIVIDENDS For the money market fund, shares begin to earn dividends on the first business day following the day of purchase. For the money market fund, shares earn dividends until, but not including, the next business day following the day of redemption. When you exchange from a stock fund to the money market fund, you will earn dividends the next business day. When you exchange from the money market fund to a stock fund, you will earn dividends until, but not including, the next business day following the day of redemption. Exchange proceeds are paid from one Select fund to another in three business days. As a result, the delay in paying exchange proceeds when exchanging between the money market fund and a stock fund could result in a lower or more volatile money market fund yield. DISTRIBUTION OPTIONS When you open an account, specify on your application how you want to receive your distributions. The following options may be available for each fund's distributions: 1. REINVESTMENT OPTION. Your dividends 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. (stock funds only) Your capital gain distributions will be automatically reinvested in additional shares of the fund. Your dividends will be paid in cash. 3. CASH OPTION. Your dividends and capital gain distributions will be paid in cash. 4. DIRECTED DIVIDENDS(registered trademark) OPTION. Your dividends will be automatically invested in shares of another identically registered Fidelity fund. Your capital gain distributions will be automatically invested in shares of another identically registered Fidelity fund, automatically reinvested in additional shares of the fund, or paid in cash. Not all distribution options are available for every account. If the option you prefer is not listed on your account application, or if you want to change your current option, call Fidelity. If you elect to receive distributions paid in cash by check and the U.S. Postal Service does not deliver your checks, your distribution option may be converted to the Reinvestment Option. You will not receive interest on amounts represented by uncashed distribution checks. TAX CONSEQUENCES As with any investment, your investment in a fund could have tax consequences for you. If you are not investing through a tax-advantaged retirement account, you should consider these tax consequences. TAXES ON DISTRIBUTIONS. Distributions you receive from each fund are subject to federal income tax, and may also be subject to state or local taxes. For federal tax purposes, each fund's dividends and distributions of short-term capital gains are taxable to you as ordinary income, while each fund's distributions of long-term capital gains are taxable to you generally as capital gains. If you buy shares when a fund has realized but not yet distributed income or capital gains, you will be "buying a dividend" by paying the full price for the shares and then receiving a portion of the price back in the form of a taxable distribution. Any taxable distributions you receive from a fund will normally be taxable to you when you receive them, regardless of your distribution option. For the money market fund, if you elect to receive distributions in cash or to invest distributions automatically in shares of another Fidelity fund, you will receive certain December distributions in January, but those distributions will be taxable as if you received them on December 31. TAXES ON TRANSACTIONS. Your stock fund redemptions, including exchanges, may result in a capital gain or loss for federal tax purposes. A capital gain or loss on your investment in a fund generally is the difference between the cost of your shares and the price you receive when you sell them. FUND SERVICES FUND MANAGEMENT Each fund is a mutual fund, an investment that pools shareholders' money and invests it toward a specified goal. FMR is each fund's manager. As of March 31, 2000, FMR had approximately $639.1 billion in discretionary assets under management. As the manager, FMR is responsible for choosing each fund's investments and handling its business affairs. Affiliates assist FMR with foreign investments: (small solid bullet) Fidelity Management & Research (U.K.) Inc. (FMR U.K.), in London, England, serves as a sub-adviser for each stock fund. FMR U.K. was organized in 1986 to provide investment research and advice to FMR. FMR U.K. may provide investment research and advice on issuers based outside the United States and may also provide investment advisory services for each stock fund. (small solid bullet) Fidelity Management & Research (Far East) Inc. (FMR Far East) serves as a sub-adviser for each stock fund. FMR Far East was organized in 1986 to provide investment research and advice to FMR. FMR Far East may provide investment research and advice on issuers based outside the United States and may also provide investment advisory services for each stock fund. (small solid bullet) Fidelity Investments Japan Limited (FIJ), in Tokyo, Japan, serves as a sub-adviser for each stock fund. As of September 28, 1999, FIJ had approximately $16.3 billion in discretionary assets under management. FIJ may provide investment research and advice on issuers based outside the United States for each stock fund. Fidelity Investments Money Management, Inc. (FIMM), in Merrimack, New Hampshire, serves as sub-adviser for the money market fund. FIMM is primarily responsible for choosing investments for the money market fund. FIMM is an affiliate of FMR. As of March 31, 2000, FIMM had approximately $206.8 billion in discretionary assets under management. Beginning January 1, 2001, FMR Co., Inc. (FMRC) will serve as sub-adviser for each stock fund. FMRC will be primarily responsible for choosing investments for each stock fund. FMRC is a wholly owned subsidiary of FMR. Pratima Abichandani is manager of Medical Delivery, which she has managed since February 2000. Since joining Fidelity in 1994, Ms. Abichandani has worked as an analyst and manager. She received an MBA from Harvard Business School in 1994. Praveen Abichandani is manager of Industrial Equipment, which he has managed since January 2000. Mr. Abichandani joined Fidelity as an equity research analyst in 1998. Ramin Arani is manager of Health Care, which he has managed since August 1999. He also manages other Fidelity funds. Mr. Arani joined Fidelity as a research associate in 1992. Telis Bertsekas is manager of Software and Computer Services, which he has managed since March 2000. Mr. Bertsekas joined Fidelity in 1997 as an equity research analyst covering the beverage and tobacco industries. Steven Calhoun is manager of Retailing, which he has managed since August 1999. Mr. Calhoun joined Fidelity as a research analyst in 1994. James Catudal is manager of Financial Services, which he has managed since February 2000. He also manages another Fidelity fund. Since joining Fidelity in 1997, Mr. Catudal has worked as an analyst and manager. Previously, he was an equity analyst with State Street Research & Management. He received an MBA from the Amos Tuck School at Dartmouth College in 1995. Tim Cohen is manager of Insurance, which he has managed since February 1999. Mr. Cohen joined Fidelity as an analyst in 1996, after receiving an MBA from The Wharton School at the University of Pennsylvania. Previously, he was a senior associate in the business assurance group at Coopers & Lybrand (now PricewaterhouseCoopers LLP), Boston, from 1991 to 1994. Jeffrey Feingold is manager of Defense and Aerospace, Transportation and Air Transportation, which he has managed since November 1998, February 2000 and February 2000, respectively. Mr. Feingold joined Fidelity in 1997 and has worked as an equity analyst following the apparel, textile and footwear industries. Matthew Fruhan is manager of Food and Agriculture, which he has managed since November 1999. Mr. Fruhan joined Fidelity in 1995 and became an equity analyst in 1999 after receiving his MBA from Harvard Business School in 1999. Ian Gutterman is manager of Environmental Services, which he has managed since November 1999. Mr. Gutterman joined Fidelity as an equity analyst in 1999 after receiving his MBA from the University of Chicago. Brian Hanson is manager of Electronics, which he has managed since February 2000. Since joining Fidelity in 1996, Mr. Hanson has worked as an equity research analyst. Brian Hogan is manager of Construction and Housing and Cyclical Industries, which he has managed since April 1999 and February 2000, respectively. He also manages another Fidelity fund. Since joining Fidelity in 1994, Mr. Hogan has worked as a fixed-income analyst, research analyst and manager. Rajiv Kaul is manager of Developing Communications, which he has managed since February 2000. Since joining Fidelity in 1996, Mr. Kaul has worked as a research associate and equity analyst. He received a bachelor of arts degree in government from Harvard College in 1995. Niel Marotta is manager of Gold and Industrial Materials, both of which he has managed since April 2000. Mr. Marotta joined Fidelity in 1997 as an equity research analyst specializing in Canadian funds. Yolanda McGettigan is manager of Biotechnology, which she has managed since February 2000. Since joining Fidelity in 1997, Ms. McGettigan has worked as an analyst and manager. She received an MBA from the Fuqua School of Business at Duke University in 1997. Kerry Nelson is manager of Medical Equipment and Systems, which she has managed since April 1998. Since joining Fidelity in 1995, Ms. Nelson has worked as a research associate, analyst and manager. Previously, she was an analyst with Grandview Partners, L.P., in Boston, from 1991 to 1994. Douglas Nigen is manager of Automotive, which he has managed since September 1999. Mr. Nigen joined Fidelity as a research analyst in 1997 after receiving his MBA from the University of Chicago. Scott Offen is manager of Energy and Natural Resources, both of which he has managed since September 1999. He also manages another Fidelity fund. Since joining Fidelity in 1985, Mr. Offen has worked as a research analyst and portfolio manager. Ted Orenstein is manager of Brokerage and Investment Management, which he has managed since January 1999. Mr. Orenstein joined Fidelity as an analyst in May 1998, after receiving a bachelor's degree in business administration from Babson College in 1994 and an MBA from The Wharton School at the University of Pennsylvania in 1998. Samuel Peters is manager of Banking, which he has managed since February 2000. Mr. Peters joined Fidelity in 1999 as an equity analyst after receiving his MBA from the University of Chicago. John Porter is manager of Consumer Industries, which he has managed since September 1999. He also manages another Fidelity fund. Mr. Porter joined Fidelity as an analyst in 1995, after receiving his MBA from the University of Chicago. Lawrence Rakers is manager of Computers and Technology, which he has managed since January 2000 and February 2000, respectively. He also manages another Fidelity fund. Mr. Rakers joined Fidelity as an analyst in 1993. John Roth is manager of Utilities Growth, which he has managed since November 1999. Mr. Roth joined Fidelity as an equity analyst in 1999 after receiving his MBA from MIT Sloan School of Management in 1999. Peter Saperstone is manager of Telecommunications, which he has managed since October 1998. He also manages other Fidelity funds. Mr. Saperstone joined Fidelity in 1995 and has worked as an analyst and manager. Adam Segel is manager of Paper and Forest Products, which he has managed since March 2000. Mr. Segel joined Fidelity in 1997 as an equity research analyst. Michael Tarlowe is manager of Leisure and Multimedia, both of which he has managed since January 2000. Mr. Tarlowe joined Fidelity as an analyst in 1994 after receiving a bachelor of business administration degree in finance from the University of Michigan. Victor Thay is manager of Home Finance, which he has managed since March 1999. Mr. Thay joined Fidelity as a research associate in 1995, after receiving undergraduate degrees in political science and business administration from the University of California at Berkeley in 1995. Nicholas Tiller is manager of Energy Service, which he has managed since February 2000. Mr. Tiller joined Fidelity as an equity analyst in 1998 after receiving his MBA from Harvard Business School in 1998. Simon Wolf is manager of Business Services and Outsourcing, which he has managed since January 2000. Mr. Wolf joined Fidelity as a research associate in 1996. Previously, he worked for Salomon Brothers as an analyst from 1993 to 1996. Mr. Wolf received a bachelor of science degree in economics from the University of Pennsylvania in 1992. Jonathan Zang is manager of Chemicals, which he has managed since September 1999. Mr. Zang joined Fidelity in 1997 as an equity analyst, after receiving his MBA from the University of Chicago in 1997. Previously, he was an investment officer with Hawaiian Trust Company, in Honolulu, from 1992 to 1995. Christian Zann is manager of Natural Gas, which he has managed since August 1999. Mr. Zann joined Fidelity as an equity research associate in 1996. From time to time a manager, analyst, or other Fidelity employee may express views regarding a particular company, security, industry, or market sector. The views expressed by any such person are the views of only that individual as of the time expressed and do not necessarily represent the views of Fidelity or any other person in the Fidelity organization. Any such views are subject to change at any time based upon market or other conditions and Fidelity disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a Fidelity fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Fidelity fund. Each fund pays a management fee to FMR. The management fee is calculated and paid to FMR every month. For the stock funds, the fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve, and multiplying the result by the fund's average net assets throughout the month. For the money market fund, the fee is calculated by adding a group fee rate to an individual fund fee rate, dividing by twelve and multiplying the result by the fund's average net assets throughout the month, and then adding an income-based fee. The income-based fee is 6% of the fund's monthly gross income in excess of an annualized 5% yield, but it cannot rise above an annual rate of 0.24% of the fund's average net assets throughout that month. The group fee rate is based on the average net assets of all the mutual funds advised by FMR. This rate cannot rise above 0.52% for each stock fund or 0.37% for the money market fund, and it drops as total assets under management increase. For February 2000, the group fee rate was .2755% for each stock fund and the group fee rate was .1260% for the money market fund. The individual fund fee rate is 0.30% for each stock fund and 0.03% for the money market fund. The total management fee, as a percentage of a fund's average net assets, for the fiscal year ended February 29, 2000, for each fund is shown in the table below. Fund Total Management Fee Air Transportation 0.58% Automotive 0.57% Banking 0.58% Biotechnology 0.59% Brokerage and Investment 0.58% Management Business Services and 0.58% Outsourcing Chemicals 0.58% Computers 0.58% Construction and Housing 0.58% Consumer Industries 0.58% Cyclical Industries 0.58% Defense and Aerospace 0.58% Developing Communications 0.58% Electronics 0.58% Energy 0.58% Energy Service 0.58% Environmental Services 0.58% Financial Services 0.58% Food and Agriculture 0.58% Gold 0.58% Health Care 0.58% Home Finance 0.58% Industrial Equipment 0.58% Industrial Materials 0.59% Insurance 0.58% Leisure 0.58% Medical Delivery 0.58% Medical Equipment and Systems 0.58% Multimedia 0.58% Natural Gas 0.58% Natural Resources 0.58% Paper and Forest Products 0.58% Retailing 0.57% Software and Computer Services 0.58% Technology 0.59% Telecommunications 0.58% Transportation 0.58% Utilities Growth 0.58% Money Market 0.18% FMR pays FIMM, FMR U.K. and FMR Far East for providing sub-advisory services. FMR Far East pays FIJ for providing sub-advisory services. FMR will pay FMRC for providing sub-advisory services. 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, in the case of certain funds, may be discontinued by FMR at any time, can decrease a fund's expenses and boost its performance. As of February 29, 2000, approximately 29.48% and 39.24% of Cyclical Industries' and Natural Resources' total outstanding shares, respectively, were held by FMR affiliates. FUND DISTRIBUTION FDC distributes each fund's shares. You may pay a sales charge when you buy your shares. FDC collects the sales charge. Each stock fund's sales charge may be reduced if you buy directly through Fidelity or through prototype or prototype-like retirement plans sponsored by FMR or FMR Corp. The amount you invest, plus the value of your account, must fall within the ranges shown below. Purchases made with assistance or intervention from a financial intermediary are not eligible for a sales charge reduction. SALES CHARGE RANGES AS A % OF OFFERING PRICE AS AN APPROXIMATE % OF NET AMOUNT INVESTED $0 - 249,999 3.00% 3.09% $250,000 - 499,999 2.00% 2.04% $500,000 - 999,999 1.00% 1.01% $1,000,000 OR MORE NONE NONE FDC may pay a portion of sales charge proceeds to securities dealers who have sold a 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 to qualified recipients is 1.50% of a fund's offering price. The sales charge will also be reduced by the percentage of any sales charge you previously paid on investments in other Fidelity funds or by the percentage of any sales charge you would have paid if the reductions in the table above had not existed. These sales charge credits only apply to purchases made in one of the ways listed below, and only if you continuously owned Fidelity fund shares, maintained a Fidelity brokerage core account, or participated in The CORPORATEplan for Retirement Program. 1. By exchange from another Fidelity fund. 2. With proceeds from a transaction in 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. As a participant in The CORPORATEplan for Retirement Program when shares are bought through plan-qualified loan repayments, and for exchanges into and out of the Managed Income Portfolio. A 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. 2. To shares in a Fidelity account bought 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. (Distributions transferred to an IRA account must be transferred within 60 days from the date of the distribution. All other distributions must be transferred directly into a Fidelity account). 3. If you are a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more. 4. If you buy shares for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined for purposes of 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 bought by a mutual fund or a qualified state tuition program for which FMR or an affiliate serves as investment manager. 7. To shares bought through Portfolio Advisory Services or Fidelity Charitable 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 regular employee of FMR Corp. or Fidelity International Limited or their 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. 9. If you are a bank trust officer, registered representative, or other employee of a qualified recipient, as defined on page . More detailed information about waivers (1), (2), (5), and (9) is contained in the statement of additional information (SAI). A representative of your plan or organization should call Fidelity for more information. To qualify for a sales charge reduction or waiver, you must notify Fidelity in advance of your purchase. To receive sales concessions and waivers, qualified recipients must sign the appropriate agreement with FDC in advance. FMR may allocate brokerage transactions in a manner that takes into account the sale of shares of a fund, provided that the fund receives brokerage services and commission rates comparable to those of other broker-dealers. No dealer, sales representative, or any other person has been authorized to give any information or to make any representations, other than those contained in this prospectus and in the related SAI, in connection with the offer contained in this prospectus. If given or made, such other information or representations must not be relied upon as having been authorized by the funds or FDC. This prospectus and the related SAI do not constitute an offer by the funds or by FDC to sell shares of the funds to or to buy shares of the funds from any person to whom it is unlawful to make such offer. APPENDIX FINANCIAL HIGHLIGHTS The financial highlights tables are intended to help you understand each fund's financial history for the past 5 years or, if shorter, the period of the fund's operations. Certain information reflects financial results for a single fund share. The total returns in the table represent the rate that an investor would have earned (or lost) on an investment in the fund (assuming reinvestment of all dividends and distributions). This information has been audited by PricewaterhouseCoopers LLP, independent accountants, whose reports, along with each fund's financial highlights and financial statements, are included in each fund's annual report. A free copy of each annual report is available upon request. AIR TRANSPORTATION
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 27.76 $ 26.86 $ 17.72 $ 21.11 $ 13.93 period Income from Investment Operations Net investment income (loss) C (.15) (.14) (.19) (.22) (.01) Net realized and unrealized 2.59 1.06 10.59 (3.12) 7.47 gain (loss) Total from investment 2.44 .92 10.40 (3.34) 7.46 operations Less Distributions From net realized gain (3.88) (.21) (1.43) (.07) (.46) In excess of net realized gain - - - (.20) - Total distributions (3.88) (.21) (1.43) (.27) (.46) Redemption fees added to paid .13 .19 .17 .22 .18 in capital Net asset value, end of period $ 26.45 $ 27.76 $ 26.86 $ 17.72 $ 21.11 TOTAL RETURN A, B 8.50% 4.11% 61.10% (15.06)% 54.91% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 24,463 $ 65,949 $ 181,185 $ 35,958 $ 75,359 (000 omitted) Ratio of expenses to average 1.40% 1.35% 1.93% 1.89% 1.47% net assets Ratio of expenses to average 1.35% D 1.27% D 1.87% D 1.80% D 1.41% D net assets after expense reductions Ratio of net investment (.48)% (.50)% (.84)% (1.10)% (.07)% income (loss) to average net assets Portfolio turnover rate 252% 260% 294% 469% 504%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 AUTOMOTIVE
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 23.28 $ 27.50 $ 25.38 $ 21.85 $ 19.84 period Income from Investment Operations Net investment income (loss) C (.12) .03 .05 .13 .03 Net realized and unrealized (4.01) (2.09) 5.21 4.28 1.95 gain (loss) Total from investment (4.13) (2.06) 5.26 4.41 1.98 operations Less Distributions From net investment income - (.01) (.08) (.17) - From net realized gain - (2.17) (3.09) (.75) - Total distributions - (2.18) (3.17) (.92) - Redemption fees added to paid .08 .02 .03 .04 .03 in capital Net asset value, end of period $ 19.23 $ 23.28 $ 27.50 $ 25.38 $ 21.85 TOTAL RETURN A, B (17.40)% (8.52)% 22.78% 20.60% 10.13% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 10,561 $ 64,541 $ 32,489 $ 86,347 $ 55,753 (000 omitted) Ratio of expenses to average 1.94% 1.45% 1.60% 1.56% 1.81% net assets Ratio of expenses to average 1.91% D 1.41% D 1.56% D 1.52% D 1.80% D net assets after expense reductions Ratio of net investment (.49)% .11% .17% .54% .13% income (loss) to average net assets Portfolio turnover rate 29% 96% 153% 175% 61%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 BANKING
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 41.57 $ 43.18 $ 32.82 $ 24.37 $ 18.01 period Income from Investment Operations Net investment income C .39 .39 .40 .37 .52 Net realized and unrealized (7.74) .91 11.41 9.70 6.78 gain (loss) Total from investment (7.35) 1.30 11.81 10.07 7.30 operations Less Distributions From net investment income (.36) (.28) (.28) (.27) (.25) From net realized gain (7.44) (2.66) (1.23) (1.40) (.72) Total distributions (7.80) (2.94) (1.51) (1.67) (.97) Redemption fees added to paid .05 .03 .06 .05 .03 in capital Net asset value, end of period $ 26.47 $ 41.57 $ 43.18 $ 32.82 $ 24.37 TOTAL RETURN A , B (22.07)% 3.10% 36.64% 43.33% 40.94% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 363,537 $ 925,829 $ 1,338,896 $ 837,952 $ 315,178 (000 omitted) Ratio of expenses to average 1.23% 1.17% 1.25% 1.46% 1.41% net assets Ratio of expenses to average 1.19% D 1.16% D 1.24% D 1.45% D 1.40% D net assets after expense reductions Ratio of net investment 1.00% .91% 1.07% 1.36% 2.42% income to average net assets Portfolio turnover rate 94% 22% 25% 43% 103%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 BIOTECHNOLOGY
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 41.35 $ 34.52 $ 34.24 $ 36.60 $ 25.30 period Income from Investment Operations Net investment income (loss) C (.30) (.26) (.27) (.20) .11 Net realized and unrealized 68.93 9.15 5.20 1.89 11.21 gain (loss) Total from investment 68.63 8.89 4.93 1.69 11.32 operations Less Distributions From net investment income - - - (.03) (.07) From net realized gain (2.82) (2.09) (4.71) (4.06) - Total distributions (2.82) (2.09) (4.71) (4.09) (.07) Redemption fees added to paid .11 .03 .06 .04 .05 in capital Net asset value, end of period $ 107.27 $ 41.35 $ 34.52 $ 34.24 $ 36.60 TOTAL RETURN A, B 173.22% 27.13% 16.11% 5.85% 44.97% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 5,292,350 $ 741,530 $ 579,542 $ 674,902 $ 1,096,864 (000 omitted) Ratio of expenses to average 1.16% 1.34% 1.49% 1.57% 1.44% D net assets Ratio of expenses to average 1.15% E 1.30% E 1.47% E 1.56% E 1.43% E net assets after expense reductions Ratio of net investment (.51)% (.75)% (.81)% (.59)% .35% income (loss) to average net assets Portfolio turnover rate 72% 86% 162% 41% 67%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 BROKERAGE AND INVESTMENT MANAGEMENT
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 41.16 $ 39.78 $ 25.76 $ 18.49 $ 15.51 period Income from Investment Operations Net investment income (loss) C (.04) .10 .16 .08 .09 Net realized and unrealized 7.64 1.72 14.46 7.80 4.29 gain (loss) Total from investment 7.60 1.82 14.62 7.88 4.38 operations Less Distributions From net investment income (.05) (.01) (.09) (.06) (.04) From net realized gain (3.13) (.52) (.61) (.65) (1.09) In excess of net realized gain - - - - (.35) Total distributions (3.18) (.53) (.70) (.71) (1.48) Redemption fees added to paid .11 .09 .10 .10 .08 in capital Net asset value, end of period $ 45.69 $ 41.16 $ 39.78 $ 25.76 $ 18.49 TOTAL RETURN A, B 19.14% 4.76% 57.56% 44.27% 29.85% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 423,572 $ 482,525 $ 676,067 $ 458,787 $ 38,382 (000 omitted) Ratio of expenses to average 1.29% 1.26% 1.33% 1.94% 1.64% D net assets Ratio of expenses to average 1.28% E 1.24% E 1.29% E 1.93% E 1.61% E net assets after expense reductions Ratio of net investment (.09)% .26% .49% .37% .50% income (loss) to average net assets Portfolio turnover rate 47% 59% 100% 16% 166%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 BUSINESS SERVICES AND OUTSOURCING Years ended February 28, 2000 I 1999 1998 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 13.57 $ 10.89 $ 10.00 period Income from Investment Operations Net investment income (loss) D (.05) E (.11) - Net realized and unrealized 1.69 2.92 .89 gain (loss) Total from investment 1.64 2.81 .89 operations Less Distributions From net realized gain (1.23) (.16) - Redemption fees added to paid .02 .03 - in capital Net asset value, end of period $ 14.00 $ 13.57 $ 10.89 TOTAL RETURN B, C 12.15% 26.23% 8.90% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 52,278 $ 64,123 $ 15,915 (000 omitted) Ratio of expenses to average 1.50% 1.66% 2.50% A, G net assets Ratio of expenses to average 1.48% H 1.64% H 2.50% A net assets after expense reductions Ratio of net investment (.37)% (.91)% (.49)% A income (loss) to average net assets Portfolio turnover rate 54% 115% 36% A A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM SABRE HOLDINGS CORP. CLASS A WHICH AMOUNTED TO $.05 PER SHARE. F FOR THE PERIOD FEBRUARY 4, 1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998. G FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. H FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. I FOR THE YEAR ENDED FEBRUARY 29 CHEMICALS
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 31.10 $ 45.90 $ 42.53 $ 39.53 $ 33.91 period Income from Investment Operations Net investment income (loss) C .15 .17 (.02) .28 .01 Net realized and unrealized 3.22 (10.77) 7.88 5.49 8.89 gain (loss) Total from investment 3.37 (10.60) 7.86 5.77 8.90 operations Less Distributions From net investment income (.09) (.05) - (.12) (.08) From net realized gain (.73) (3.52) (4.54) (2.74) (3.22) In excess of net realized gain - (.68) - - - Total distributions (.82) (4.25) (4.54) (2.86) (3.30) Redemption fees added to paid .14 .05 .05 .09 .02 in capital Net asset value, end of period $ 33.79 $ 31.10 $ 45.90 $ 42.53 $ 39.53 TOTAL RETURN A, B 11.10% (23.66)% 19.47% 15.06% 27.48% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 26,307 $ 31,862 $ 69,349 $ 111,409 $ 89,230 (000 omitted) Ratio of expenses to average 1.64% 1.58% 1.68% 1.83% 1.99% net assets Ratio of expenses to average 1.63% D 1.51% D 1.67% D 1.81% D 1.97% D net assets after expense reductions Ratio of net investment .40% .44% (.05)% .67% .04% income (loss) to average net assets Portfolio turnover rate 132% 141% 31% 207% 87%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 COMPUTERS
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 68.37 $ 41.08 $ 48.25 $ 41.03 $ 30.67 period Income from Investment Operations Net investment income (loss) C (.41) (.29) (.32) (.36) (.23) Net realized and unrealized 74.86 27.39 6.42 9.94 16.10 gain (loss) Total from investment 74.45 27.10 6.10 9.58 15.87 operations Less Distributions From net realized gain (14.92) - (10.64) (2.47) (5.61) In excess of net realized gain - - (2.75) - - Total distributions (14.92) - (13.39) (2.47) (5.61) Redemption fees added to paid .05 .19 .12 .11 .10 in capital Net asset value, end of period $ 127.95 $ 68.37 $ 41.08 $ 48.25 $ 41.03 TOTAL RETURN A, B 119.58% 66.43% 20.33% 23.97% 52.79% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 3,824,215 $ 1,831,435 $ 785,465 $ 604,286 $ 527,337 (000 omitted) Ratio of expenses to average 1.07% 1.25% 1.40% 1.48% 1.40% net assets Ratio of expenses to average 1.05% D 1.23% D 1.34% D 1.44% D 1.38% D net assets after expense reductions Ratio of net investment (.47)% (.54)% (.67)% (.83)% (.56)% income (loss) to average net assets Portfolio turnover rate 129% 133% 333% 255% 129%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 CONSTRUCTION AND HOUSING
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 25.02 $ 25.63 $ 22.00 $ 19.56 $ 16.79 period Income from Investment Operations Net investment income (loss) C (.13) (.06) (.25) .06 .07 Net realized and unrealized (4.11) (.53) 7.67 3.38 3.55 gain (loss) Total from investment (4.24) (.59) 7.42 3.44 3.62 operations Less Distributions From net investment income - - (.02) (.02) (.07) From net realized gain (3.42) (.06) (3.87) (1.03) (.81) Total distributions (3.42) (.06) (3.89) (1.05) (.88) Redemption fees added to paid .08 .04 .10 .05 .03 in capital Net asset value, end of period $ 17.44 $ 25.02 $ 25.63 $ 22.00 $ 19.56 TOTAL RETURN A, B (18.28)% (2.16)% 40.04% 18.64% 21.77% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 7,925 $ 51,652 $ 57,484 $ 30,581 $ 42,668 (000 omitted) Ratio of expenses to average 2.42% 1.43% 2.50% D 1.41% 1.43% net assets Ratio of expenses to average 2.34% E 1.37% E 2.43% E 1.35% E 1.40% E net assets after expense reductions Ratio of net investment (.53)% (.23)% (1.10)% .27% .39% income (loss) to average net assets Portfolio turnover rate 34% 226% 404% 270% 139%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 CONSUMER INDUSTRIES
Years ended February 28, 2000 G 1999 1998 1997 1996 G SELECTED PER-SHARE DATA Net asset value, beginning of $ 31.81 $ 27.31 $ 20.66 $ 17.84 $ 13.91 period Income from Investment Operations Net investment income (loss) C .02 D (.04) (.22) (.22) .08 Net realized and unrealized (1.29) 5.41 8.34 2.93 3.97 gain (loss) Total from investment (1.27) 5.37 8.12 2.71 4.05 operations Less Distributions From net investment income (.02) - - - (.02) From net realized gain (2.08) (.90) (1.52) - (.01) In excess of net realized gain - - - - (.20) Total distributions (2.10) (.90) (1.52) - (.23) Redemption fees added to paid .02 .03 .05 .11 .11 in capital Net asset value, end of period $ 28.46 $ 31.81 $ 27.31 $ 20.66 $ 17.84 TOTAL RETURN A, B (4.55)% 20.18% 40.36% 15.81% 30.01% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 63,331 $ 82,244 $ 72,152 $ 18,392 $ 22,362 (000 omitted) Ratio of expenses to average 1.27% 1.34% 2.01% 2.49% 1.53% F net assets Ratio of expenses to average 1.25% E 1.32% E 1.97% E 2.44% E 1.48% E net assets after expense reductions Ratio of net investment .06% (.15)% (.90)% (1.13)% .46% income (loss) to average net assets Portfolio turnover rate 96% 150% 199% 340% 601%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM UNILEVER NV (NY SHARES) WHICH AMOUNTED TO $.04 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F DURING THE PERIOD, FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. G FOR THE YEAR ENDED FEBRUARY 29 CYCLICAL INDUSTRIES Years ended February 28, 2000 H 1999 1998 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 11.39 $ 12.07 $ 10.00 period Income from Investment Operations Net investment income (loss) D (.13) (.13) (.11) Net realized and unrealized .21 (.49) 2.59 gain (loss) Total from investment .08 (.62) 2.48 operations Less Distributions From net realized gain - (.09) (.46) Redemption fees added to paid .08 .03 .05 in capital Net asset value, end of period $ 11.55 $ 11.39 $ 12.07 TOTAL RETURN B, C 1.40% (4.96)% 25.77% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 4,112 $ 3,087 $ 3,965 (000 omitted) Ratio of expenses to average 2.50% F 2.50% F 2.50% A, F net assets Ratio of expenses to average 2.49% G 2.49% G 2.50% A net assets after expense reductions Ratio of net investment (1.00)% (1.09)% (.93)% A income (loss) to average net assets Portfolio turnover rate 211% 103% 140% A A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998. F FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. H FOR THE YEAR ENDED FEBRUARY 29 DEFENSE AND AEROSPACE
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 33.85 $ 37.57 $ 28.94 $ 26.97 $ 19.64 period Income from Investment Operations Net investment income (loss) C (.15) (.19) (.29) (.11) (.05) Net realized and unrealized 1.14 (3.61) 11.84 4.18 9.09 gain (loss) Total from investment .99 (3.80) 11.55 4.07 9.04 operations Less Distributions From net realized gain (.59) - (3.04) (2.17) (1.82) Redemption fees added to paid .11 .08 .12 .07 .11 in capital Net asset value, end of period $ 34.36 $ 33.85 $ 37.57 $ 28.94 $ 26.97 TOTAL RETURN A, B 3.24% (9.90)% 42.68% 15.87% 47.40% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 21,406 $ 28,497 $ 101,805 $ 68,803 $ 26,648 (000 omitted) Ratio of expenses to average 1.61% 1.48% 1.77% 1.84% 1.77% D net assets Ratio of expenses to average 1.59% E 1.42% E 1.71% E 1.81% E 1.75% E net assets after expense reductions Ratio of net investment (.42)% (.53)% (.85)% (.39)% (.20)% income (loss) to average net assets Portfolio turnover rate 146% 221% 311% 219% 267%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 DEVELOPING COMMUNICATIONS
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 32.72 $ 20.14 $ 19.68 $ 19.42 $ 20.40 period Income from Investment Operations Net investment income (loss) C (.22) (.16) (.18) (.18) (.17) Net realized and unrealized 52.31 12.72 4.95 .42 4.17 gain (loss) Total from investment 52.09 12.56 4.77 .24 4.00 operations Less Distributions From net realized gain (3.07) (.07) (4.35) - (5.00) Redemption fees added to paid .07 .09 .04 .02 .02 in capital Net asset value, end of period $ 81.81 $ 32.72 $ 20.14 $ 19.68 $ 19.42 TOTAL RETURN A, B 166.12% 63.01% 28.17% 1.34% 21.84% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 3,452,727 $ 612,061 $ 238,356 $ 220,360 $ 333,185 (000 omitted) Ratio of expenses to average 1.11% 1.38% 1.61% 1.64% 1.53% net assets Ratio of expenses to average 1.11% 1.34% D 1.55% D 1.62% D 1.51% D net assets after expense reductions Ratio of net investment (.47)% (.64)% (.82)% (.86)% (.78)% income (loss) to average net assets Portfolio turnover rate 112% 299% 383% 202% 249%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 ELECTRONICS
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 47.34 $ 34.99 $ 37.95 $ 28.18 $ 19.80 period Income from Investment Operations Net investment income (loss) C (.33) (.23) (.17) (.17) (.08) Net realized and unrealized 81.13 12.53 7.32 9.80 13.51 gain (loss) Total from investment 80.80 12.30 7.15 9.63 13.43 operations Less Distributions From net realized gain (6.62) - (7.60) - (5.25) In excess of net realized gain - - (2.60) - - Total distributions (6.62) - (10.20) - (5.25) Redemption fees added to paid .06 .05 .09 .14 .20 in capital Net asset value, end of period $ 121.58 $ 47.34 $ 34.99 $ 37.95 $ 28.18 TOTAL RETURN A, B 178.06% 35.30% 24.15% 34.67% 72.75% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 9,960,884 $ 2,885,548 $ 2,668,750 $ 1,744,017 $ 1,133,362 (000 omitted) Ratio of expenses to average .99% 1.18% 1.18% 1.33% 1.25% net assets Ratio of expenses to average .98% D 1.15% D 1.12% D 1.29% D 1.22% D net assets after expense reductions Ratio of net investment (.46)% (.62)% (.42)% (.54)% (.28)% income (loss) to average net assets Portfolio turnover rate 125% 160% 435% 341% 366%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 ENERGY
Years ended February 28 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 16.23 $ 21.20 $ 21.31 $ 18.97 $ 16.10 period Income from Investment Operations Net investment income C .10 .13 .11 .13 .18 Net realized and unrealized 7.11 (4.71) 3.93 3.59 3.13 gain (loss) Total from investment 7.21 (4.58) 4.04 3.72 3.31 operations Less Distributions From net investment income (.09) (.02) (.09) (.13) (.11) From net realized gain (.29) (.40) (4.09) (1.31) (.36) Total distributions (.38) (.42) (4.18) (1.44) (.47) Redemption fees added to paid .05 .03 .03 .06 .03 in capital Net asset value, end of period $ 23.11 $ 16.23 $ 21.20 $ 21.31 $ 18.97 TOTAL RETURN A, B 44.89% (22.00)% 20.40% 20.35% 20.92% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 175,672 $ 120,004 $ 147,023 $ 203,265 $ 119,676 (000 omitted) Ratio of expenses to average 1.29% 1.46% 1.58% 1.57% 1.63% net assets Ratio of expenses to average 1.25% D 1.42% D 1.53% D 1.55% D 1.63% net assets after expense reductions Ratio of net investment .45% .68% .47% .62% 1.04% income to average net assets Portfolio turnover rate 124% 138% 115% 87% 97%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 ENERGY SERVICE
Years ended February 28, 2000 F 1999 1998 1997 1996 f SELECTED PER-SHARE DATA Net asset value, beginning of $ 13.09 $ 28.02 $ 20.46 $ 16.09 $ 11.97 period Income from Investment Operations Net investment income (loss) C (.09) (.10) (.10) (.01) .08 d Net realized and unrealized 15.86 (13.26) 9.36 5.05 4.49 gain (loss) Total from investment 15.77 (13.36) 9.26 5.04 4.57 operations Less Distributions From net investment income - - - - (.04) From net realized gain - (1.71) (1.85) (.79) (.48) Total distributions - (1.71) (1.85) (.79) (.52) Redemption fees added to paid .10 .14 .15 .12 .07 in capital Net asset value, end of period $ 28.96 $ 13.09 $ 28.02 $ 20.46 $ 16.09 TOTAL RETURN A, B 121.24% (50.57)% 48.43% 32.26% 39.15% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 631,886 $ 366,896 $ 919,002 $ 439,504 $ 273,805 (000 omitted) Ratio of expenses to average 1.23% 1.39% 1.25% 1.47% 1.59% net assets Ratio of expenses to average 1.20% e 1.35% e 1.22% e 1.45% e 1.58% e net assets after expense reductions Ratio of net investment (.40)% (.49)% (.35)% (.07)% .60% income (loss) to average net assets Portfolio turnover rate 69% 75% 78% 167% 223%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.02 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 ENVIRONMENTAL SERVICES
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 12.77 $ 16.46 $ 14.50 $ 12.42 $ 10.27 period Income from Investment Operations Net investment income (loss) C (.21) (.18) (.13) (.08) (.17) Net realized and unrealized (3.03) (3.50) 2.07 2.04 2.95 gain (loss) Total from investment (3.24) (3.68) 1.94 1.96 2.78 operations Less Distributions From net realized gain - - - - (.65) In excess of net realized gain (.01) (.03) - (.02) - Total distributions (.01) (.03) - (.02) (.65) Redemption fees added to paid .05 .02 .02 .14 .02 in capital Net asset value, end of period $ 9.57 $ 12.77 $ 16.46 $ 14.50 $ 12.42 TOTAL RETURN A, B (25.00)% (22.23)% 13.52% 16.93% 27.49% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 17,553 $ 15,534 $ 25,183 $ 32,525 $ 27,587 (000 omitted) Ratio of expenses to average 2.47% 2.20% 2.23% 2.18% 2.36% net assets Ratio of expenses to average 2.39% D 2.16% D 2.22% D 2.11% D 2.32% D net assets after expense reductions Ratio of net investment (1.76)% (1.23)% (.84)% (.59)% (1.43)% income (loss) to average net assets Portfolio turnover rate 206% 123% 59% 252% 138%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 FINANCIAL SERVICES
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 100.82 $ 103.28 $ 82.94 $ 65.70 $ 48.23 period Income from Investment Operations Net investment income C .67 .56 .70 .74 1.03 Net realized and unrealized (14.61) 7.88 30.65 21.55 17.56 gain (loss) Total from investment (13.94) 8.44 31.35 22.29 18.59 operations Less Distributions From net investment income (.64) (.19) (.64) (.63) (.37) From net realized gain (5.09) (10.81) (10.51) (4.56) (.91) Total distributions (5.73) (11.00) (11.15) (5.19) (1.28) Redemption fees added to paid .16 .10 .14 .14 .16 in capital Net asset value, end of period $ 81.31 $ 100.82 $ 103.28 $ 82.94 $ 65.70 TOTAL RETURN A, B (14.53)% 8.42% 41.08% 35.54% 39.05% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 344,152 $ 547,000 $ 604,908 $ 426,424 $ 270,466 (000 omitted) Ratio of expenses to average 1.19% 1.20% 1.31% 1.45% 1.42% net assets Ratio of expenses to average 1.17% D 1.18% D 1.29% D 1.43% D 1.41% D net assets after expense reductions Ratio of net investment .66% .58% .78% 1.03% 1.78% income to average net assets Portfolio turnover rate 57% 60% 84% 80% 125%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 FOOD AND AGRICULTURE
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 46.92 $ 48.81 $ 44.53 $ 42.15 $ 32.53 period Income from Investment Operations Net investment income C .42 D .21 .33 .42 .37 Net realized and unrealized (13.07) 3.50 9.22 4.91 11.61 gain (loss) Total from investment (12.65) 3.71 9.55 5.33 11.98 operations Less Distributions From net investment income (.42) (.16) (.37) (.24) (.20) From net realized gain (1.79) (5.47) (4.95) (2.77) (2.20) In excess of net realized gain (.21) - - - - Total distributions (2.42) (5.63) (5.32) (3.01) (2.40) Redemption fees added to paid .03 .03 .05 .06 .04 in capital Net asset value, end of period $ 31.88 $ 46.92 $ 48.81 $ 44.53 $ 42.15 TOTAL RETURN A, B (27.86)% 7.83% 23.58% 13.59% 37.92% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 78,288 $ 206,007 $ 250,567 $ 223,423 $ 301,102 (000 omitted) Ratio of expenses to average 1.31% 1.31% 1.49% 1.52% 1.43% net assets Ratio of expenses to average 1.29% E 1.29% E 1.48% E 1.50% E 1.42% E net assets after expense reductions Ratio of net investment 1.00% .45% .73% 1.01% .99% income to average net assets Portfolio turnover rate 38% 68% 74% 91% 124%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM UNILEVER NV (NY SHARES) WHICH AMOUNTED TO $.28 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 GOLD
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 12.79 $ 15.17 $ 28.21 $ 27.11 $ 18.44 period Income from Investment Operations Net investment income (loss) C .09 D (.08) (.13) (.16) (.06) Net realized and unrealized .46 (2.43) (11.78) 1.60 8.62 gain (loss) Total from investment .55 (2.51) (11.91) 1.44 8.56 operations Less Distributions From net realized gain - - (1.29) (.50) - Redemption fees added to paid .11 .13 .16 .16 .11 in capital Net asset value, end of period $ 13.45 $ 12.79 $ 15.17 $ 28.21 $ 27.11 TOTAL RETURN A, B 5.16% (15.69)% (43.15)% 6.10% 47.02% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 283,966 $ 179,619 $ 219,668 $ 428,103 $ 451,493 (000 omitted) Ratio of expenses to average 1.49% 1.57% 1.55% 1.44% 1.39% net assets Ratio of expenses to average 1.41% F 1.54% F 1.48% F 1.42% F 1.39% net assets after expense reductions Ratio of net investment .68% (.59)% (.67)% (.59)% (.27)% income (loss) to average net assets Portfolio turnover rate 71% G 59% 89% 63% 56%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM GOLD FIELDS LTD. WHICH AMOUNTED TO $.06 PER SHARE. E FOR THE YEAR ENDED FEBRUARY 29 F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. G THE PORTFOLIO TURNOVER RATE DOES NOT INCLUDE THE ASSETS ACQUIRED IN THE MERGER. HEALTH CARE
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 137.60 $ 113.84 $ 102.45 $ 100.47 $ 76.13 period Income from Investment Operations Net investment income C .15 .17 .33 .52 .95 Net realized and unrealized .90 29.85 31.94 18.01 28.85 gain (loss) Total from investment 1.05 30.02 32.27 18.53 29.80 operations Less Distributions From net investment income (.08) (.19) (.25) (.65) (.59) From net realized gain (7.85) (6.17) (20.73) (15.95) (4.92) Total distributions (7.93) (6.36) (20.98) (16.60) (5.51) Redemption fees added to paid .07 .10 .10 .05 .05 in capital Net asset value, end of period $ 130.79 $ 137.60 $ 113.84 $ 102.45 $ 100.47 TOTAL RETURN A, B 1.15% 27.20% 36.47% 20.41% 39.68% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 2,365,063 $ 3,145,825 $ 2,224,019 $ 1,372,554 $ 1,525,910 (000 omitted) Ratio of expenses to average 1.07% 1.07% 1.20% 1.33% 1.31% net assets Ratio of expenses to average 1.05% D 1.05% D 1.18% D 1.32% D 1.30% D net assets after expense reductions Ratio of net investment .12% .14% .31% .52% 1.06% income to average net assets Portfolio turnover rate 70% 66% 79% 59% 54%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 HOME FINANCE
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 42.09 $ 53.36 $ 46.00 $ 33.30 $ 23.92 period Income from Investment Operations Net investment income C .30 .28 .33 .53 .53 Net realized and unrealized (10.64) (10.16) 13.10 14.60 9.72 gain (loss) Total from investment (10.34) (9.88) 13.43 15.13 10.25 operations Less Distributions From net investment income (.19) (.07) (.29) (.32) (.19) From net realized gain (.69) (1.38) (5.84) (2.16) (.73) Total distributions (.88) (1.45) (6.13) (2.48) (.92) Redemption fees added to paid .05 .06 .06 .05 .05 in capital Net asset value, end of period $ 30.92 $ 42.09 $ 53.36 $ 46.00 $ 33.30 TOTAL RETURN A, B (24.88)% (19.12)% 32.39% 47.50% 43.24% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 213,058 $ 740,440 $ 1,668,610 $ 1,176,828 $ 617,035 (000 omitted) Ratio of expenses to average 1.39% 1.19% 1.21% 1.38% 1.35% net assets Ratio of expenses to average 1.37% D 1.18% D 1.19% D 1.34% D 1.32% D net assets after expense reductions Ratio of net investment .72% .57% .67% 1.41% 1.80% income to average net assets Portfolio turnover rate 91% 18% 54% 78% 81%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 INDUSTRIAL EQUIPMENT
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 25.23 $ 25.91 $ 25.51 $ 25.11 $ 20.04 period Income from Investment Operations Net investment income (loss) C .02 (.04) (.08) .06 .04 Net realized and unrealized 4.44 .25 5.73 4.15 7.10 gain (loss) Total from investment 4.46 .21 5.65 4.21 7.14 operations Less Distributions From net investment income (.01) - (.02) (.04) (.05) From net realized gain (3.34) (.92) (5.26) (3.84) (2.05) Total distributions (3.35) (.92) (5.28) (3.88) (2.10) Redemption fees added to paid .04 .03 .03 .07 .03 in capital Net asset value, end of period $ 26.38 $ 25.23 $ 25.91 $ 25.51 $ 25.11 TOTAL RETURN A, B 18.98% 1.00% 25.76% 18.25% 36.86% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 26,117 $ 31,573 $ 50,428 $ 102,882 $ 137,520 (000 omitted) Ratio of expenses to average 1.43% 1.43% 1.67% 1.51% 1.54% net assets Ratio of expenses to average 1.41% D 1.41% D 1.60% D 1.44% D 1.53% D net assets after expense reductions Ratio of net investment .06% (.16)% (.32)% .25% .19% income (loss) to average net assets Portfolio turnover rate 119% 84% 115% 261% 115%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 INDUSTRIAL MATERIALS
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 20.32 $ 25.00 $ 27.66 $ 26.07 $ 23.13 period Income from Investment Operations Net investment income (loss) C .05 (.12) (.11) .06 .12 Net realized and unrealized (.89) (4.60) 1.43 3.12 2.92 gain (loss) Total from investment (.84) (4.72) 1.32 3.18 3.04 operations Less Distributions From net investment income (.03) - (.03) (.06) (.15) From net realized gain - - (4.00) (1.57) - Total distributions (.03) - (4.03) (1.63) (.15) Redemption fees added to paid .19 .04 .05 .04 .05 in capital Net asset value, end of period $ 19.64 $ 20.32 $ 25.00 $ 27.66 $ 26.07 TOTAL RETURN A, B (3.22)% (18.72)% 6.59% 12.69% 13.38% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 20,627 $ 11,162 $ 22,582 $ 66,462 $ 86,338 (000 omitted) Ratio of expenses to average 1.92% 2.07% 1.98% 1.54% 1.64% net assets Ratio of expenses to average 1.89% D 2.04% D 1.94% D 1.51% D 1.61% D net assets after expense reductions Ratio of net investment .21% (.52)% (.42)% .23% .49% income (loss) to average net assets Portfolio turnover rate 257% 82% 118% 105% 138%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 INSURANCE
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 42.14 $ 42.10 $ 32.62 $ 26.77 $ 21.31 period Income from Investment Operations Net investment income (loss) C (.05) (.04) .01 .01 .06 Net realized and unrealized (7.92) 4.01 12.93 7.21 6.15 gain (loss) Total from investment (7.97) 3.97 12.94 7.22 6.21 operations Less Distributions From net investment income - - - (.03) (.07) From net realized gain (6.60) (3.98) (3.54) (1.45) (.72) Total distributions (6.60) (3.98) (3.54) (1.48) (.79) Redemption fees added to paid .07 .05 .08 .11 .04 in capital Net asset value, end of period $ 27.64 $ 42.14 $ 42.10 $ 32.62 $ 26.77 TOTAL RETURN A, B (22.12)% 9.84% 42.81% 28.28% 29.51% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 29,521 $ 82,879 $ 125,151 $ 42,367 $ 38,994 (000 omitted) Ratio of expenses to average 1.39% 1.33% 1.45% 1.82% 1.77% net assets Ratio of expenses to average 1.36% D 1.31% D 1.43% D 1.77% D 1.74% D net assets after expense reductions Ratio of net investment (.12)% (.10)% .02% .05% .26% income (loss) to average net assets Portfolio turnover rate 107% 72% 157% 142% 164%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 LEISURE
Years ended February 28, 2000 G 1999 1998 1997 1996 G SELECTED PER-SHARE DATA Net asset value, beginning of $ 81.44 $ 62.30 $ 47.83 $ 46.17 $ 40.71 period Income from Investment Operations Net investment income (loss) C (.28) D (.27) (.25) (.06) E (.21) Net realized and unrealized 11.58 22.78 21.10 4.47 10.97 gain (loss) Total from investment 11.30 22.51 20.85 4.41 10.76 operations Less Distributions From net realized gain (8.15) (3.44) (6.46) (2.83) (5.32) Redemption fees added to paid .14 .07 .08 .08 .02 in capital Net asset value, end of period $ 84.73 $ 81.44 $ 62.30 $ 47.83 $ 46.17 TOTAL RETURN A, B 13.89% 37.54% 47.29% 10.14% 27.61% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 314,348 $ 346,139 $ 257,199 $ 98,133 $ 85,013 (000 omitted) Ratio of expenses to average 1.15% 1.26% 1.44% 1.56% 1.64% net assets Ratio of expenses to average 1.12% F 1.24% F 1.39% F 1.54% F 1.63% F net assets after expense reductions Ratio of net investment (.32)% (.40)% (.46)% (.12)% (.46)% income (loss) to average net assets Portfolio turnover rate 120% 107% 209% 127% 141%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM SABRE HOLDINGS CORP. CLASS A WHICH AMOUNTED TO $.04 PER SHARE. E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.23 PER SHARE. F FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. G FOR THE YEAR ENDED FEBRUARY 29 MEDICAL DELIVERY
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 19.08 $ 28.32 $ 28.29 $ 29.00 $ 23.18 period Income from Investment Operations Net investment income (loss) C (.18) (.06) E (.24) (.23) (.03) Net realized and unrealized (3.61) (7.88) 5.45 2.92 7.72 gain (loss) Total from investment (3.79) (7.94) 5.21 2.69 7.69 operations Less Distributions From net realized gain - (1.21) (5.23) (3.45) (1.91) In excess of net realized gain - (.13) - - - Total distributions - (1.34) (5.23) (3.45) (1.91) Redemption fees added to paid .05 .04 .05 .05 .04 in capital Net asset value, end of period $ 15.34 $ 19.08 $ 28.32 $ 28.29 $ 29.00 TOTAL RETURN A, B (19.60)% (29.47)% 21.97% 10.50% 34.15% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 45,106 $ 76,842 $ 155,542 $ 192,385 $ 295,489 (000 omitted) Ratio of expenses to average 1.73% 1.40% 1.57% 1.57% 1.65% net assets Ratio of expenses to average 1.67% D 1.37% D 1.53% D 1.53% D 1.62% D net assets after expense reductions Ratio of net investment (1.02)% (.25)% (.88)% (.84)% (.13)% income (loss) to average net assets Portfolio turnover rate 154% 67% 109% 78% 132%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.12 PER SHARE. F FOR THE YEAR ENDED FEBRUARY 29 MEDICAL EQUIPMENT AND SYSTEMS Years ended February 28, 2000 G 1999 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 12.10 $ 10.00 period Income from Investment Operations Net investment income (loss) D (.08) (.11) Net realized and unrealized 3.09 2.18 gain (loss) Total from investment 3.01 2.07 operations Less Distributions From net realized gain (.42) - Redemption fees added to paid .02 .03 in capital Net asset value, end of period $ 14.71 $ 12.10 TOTAL RETURN B, C 25.68% 21.00% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 52,030 $ 28,594 (000 omitted) Ratio of expenses to average 1.66% 2.39% A net assets Ratio of expenses to average 1.65% E 2.38% A, E net assets after expense reductions Ratio of net investment (.61)% (1.21)% A income (loss) to average net assets Portfolio turnover rate 101% 85% A A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE PERIOD APRIL 28,1998 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1999. G FOR THE YEAR ENDED FEBRUARY 29 MULTIMEDIA
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 43.13 $ 33.58 $ 24.91 $ 27.18 $ 22.35 period Income from Investment Operations Net investment income (loss) C (.16) (.19) (.17) .35 D .02 Net realized and unrealized 11.90 11.85 10.30 (1.58) 7.00 gain (loss) Total from investment 11.74 11.66 10.13 (1.23) 7.02 operations Less Distributions From net investment income - - - - (.02) From net realized gain (1.57) (2.19) (1.52) (1.07) (2.19) Total distributions (1.57) (2.19) (1.52) (1.07) (2.21) Redemption fees added to paid .09 .08 .06 .03 .02 in capital Net asset value, end of period $ 53.39 $ 43.13 $ 33.58 $ 24.91 $ 27.18 TOTAL RETURN A, B 27.62% 36.68% 42.42% (4.52)% 31.98% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 238,612 $ 159,730 $ 115,485 $ 54,171 $ 94,970 (000 omitted) Ratio of expenses to average 1.17% 1.35% 1.75% 1.60% 1.56% net assets Ratio of expenses to average 1.15% E 1.33% E 1.71% E 1.56% E 1.54% E net assets after expense reductions Ratio of net investment (.32)% (.52)% (.59)% 1.33% .08% income (loss) to average net assets Portfolio turnover rate 76% 109% 219% 99% 223%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.49 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 NATURAL GAS
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 10.59 $ 13.22 $ 12.50 $ 11.36 $ 8.98 period Income from Investment Operations Net investment income (loss) C .00 .12 D (.05) (.06) .05 Net realized and unrealized 4.68 (2.68) 1.06 1.30 2.36 gain (loss) Total from investment 4.68 (2.56) 1.01 1.24 2.41 operations Less Distributions From net investment income (.09) (.10) - (.01) (.05) From net realized gain - - (.30) (.29) - In excess of net realized gain - - (.03) - - Total distributions (.09) (.10) (.33) (.30) (.05) Redemption fees added to paid .03 .03 .04 .20 .02 in capital Net asset value, end of period $ 15.21 $ 10.59 $ 13.22 $ 12.50 $ 11.36 TOTAL RETURN A, B 44.70% (19.17)% 8.74% 12.45% 27.10% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 53,976 $ 36,828 $ 59,866 $ 81,566 $ 60,228 (000 omitted) Ratio of expenses to average 1.42% 1.57% 1.82% 1.70% 1.68% net assets Ratio of expenses to average 1.39% E 1.52% E 1.78% E 1.66% E 1.67% E net assets after expense reductions Ratio of net investment .03% .93% (.37)% (.46)% .46% income (loss) to average net assets Portfolio turnover rate 85% 107% 118% 283% 79%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.10 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 NATURAL RESOURCES Years ended February 28, 2000 H 1999 1998 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 7.89 $ 10.46 $ 10.00 period Income from Investment Operations Net investment income (loss) D (.02) (.05) (.09) Net realized and unrealized 3.80 (2.54) .76 gain (loss) Total from investment 3.78 (2.59) .67 operations Less Distributions From net realized gain - - (.26) Redemption fees added to paid .04 .02 .05 in capital Net asset value, end of period $ 11.71 $ 7.89 $ 10.46 TOTAL RETURN B, C 48.42% (24.57)% 7.30% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 14,057 $ 5,134 $ 7,520 (000 omitted) Ratio of expenses to average 1.89% 2.50% F 2.50% A, F net assets Ratio of expenses to average 1.85% G 2.47% G 2.48% A, G net assets after expense reductions Ratio of net investment (.17)% (.54)% (.86)% A income (loss) to average net assets Portfolio turnover rate 164% 155% 165% A A ANNUALIZED B THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. C TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE AND FOR PERIODS OF LESS THAN ONE YEAR ARE NOT ANNUALIZED. D NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. E FOR THE PERIOD MARCH 3, 1997 (COMMENCEMENT OF OPERATIONS) TO FEBRUARY 28, 1998. F FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES DURING THE PERIOD. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. H FOR THE YEAR ENDED FEBRUARY 29 PAPER AND FOREST PRODUCTS
Years ended February 28, 2000 D 1999 1998 1997 1996 D SELECTED PER-SHARE DATA Net asset value, beginning of $ 18.45 $ 22.66 $ 21.63 $ 20.78 $ 21.14 period Income from Investment Operations Net investment income (loss) C .20 (.03) (.12) .01 .08 Net realized and unrealized 3.26 (3.87) 3.13 2.08 1.83 gain (loss) Total from investment 3.46 (3.90) 3.01 2.09 1.91 operations Less Distributions From net investment income - - - (.03) (.08) In excess of net investment - - (.04) (.07) - income From net realized gain - - (2.07) (1.25) (2.27) In excess of net realized gain - (.44) - - - Total distributions - (.44) (2.11) (1.35) (2.35) Redemption fees added to paid .26 .13 .13 .11 .08 in capital Net asset value, end of period $ 22.17 $ 18.45 $ 22.66 $ 21.63 $ 20.78 TOTAL RETURN A, B 20.16% (17.01)% 15.53% 10.87% 9.18% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 12,412 $ 10,247 $ 31,384 $ 19,484 $ 27,270 (000 omitted) Ratio of expenses to average 1.89% 2.30% 2.18% 2.19% 1.91% net assets Ratio of expenses to average 1.74% E 2.21% E 2.15% E 2.16% E 1.90% E net assets after expense reductions Ratio of net investment .85% (.13)% (.50)% .04% .34% income (loss) to average net assets Portfolio turnover rate 383% 338% 235% 180% 78%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FOR THE YEAR ENDED FEBRUARY 29 E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. RETAILING
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 67.50 $ 50.04 $ 33.25 $ 27.87 $ 23.91 period Income from Investment Operations Net investment income (loss) C (.39) (.28) (.27) (.13) (.14) Net realized and unrealized (6.72) 18.27 17.14 5.49 4.07 gain (loss) Total from investment (7.11) 17.99 16.87 5.36 3.93 operations Less Distributions From net realized gain (10.13) (.39) (.51) (.08) - In excess of net realized gain - (.30) - - - Total distributions (10.13) (.69) (.51) (.08) - Redemption fees added to paid .16 .16 .43 .10 .03 in capital Net asset value, end of period $ 50.42 $ 67.50 $ 50.04 $ 33.25 $ 27.87 TOTAL RETURN A, B (12.15)% 36.66% 52.61% 19.59% 16.56% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 75,822 $ 337,513 $ 192,861 $ 59,348 $ 44,051 (000 omitted) Ratio of expenses to average 1.25% 1.25% 1.63% 1.45% 1.94% net assets Ratio of expenses to average 1.20% D 1.22% D 1.55% D 1.39% D 1.92% D net assets after expense reductions Ratio of net investment (.60)% (.50)% (.67)% (.39)% (.53)% income (loss) to average net assets Portfolio turnover rate 88% 165% 308% 278% 235%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 SOFTWARE AND COMPUTER SERVICES
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 57.09 $ 44.26 $ 38.58 $ 36.20 $ 29.07 period Income from Investment Operations Net investment income (loss) C (.36) F (.39) (.33) (.25) (.19) Net realized and unrealized 54.60 14.46 12.57 5.87 11.85 gain (loss) Total from investment 54.24 14.07 12.24 5.62 11.66 operations Less distributions from net (6.33) (1.32) (6.61) (3.31) (4.60) realized gain Redemption fees added to paid .09 .08 .05 .07 .07 in capital Net asset value, end of period $ 105.09 $ 57.09 $ 44.26 $ 38.58 $ 36.20 TOTAL RETURN A, B 100.83% 32.57% 35.50% 16.14% 40.17% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 1,447,686 $ 690,852 $ 503,367 $ 389,699 $ 337,633 (000 omitted) Ratio of expenses to average 1.11% 1.28% 1.44% 1.54% 1.48% net assets Ratio of expenses to average 1.11% 1.27% D 1.42% D 1.51% D 1.47% D net assets after expense reductions Ratio of net investment (.51)% (.82)% (.81)% (.66)% (.54)% income (loss) to average net assets Portfolio turnover rate 59% 72% 145% 279% 183%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 F INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM SABRE HOLDINGS CORP. CLASS A WHICH AMOUNTED TO $.01 PER SHARE. TECHNOLOGY
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 82.70 $ 53.13 $ 57.70 $ 54.67 $ 42.05 period Income from Investment Operations Net investment income (loss) C (.40) D (.34) (.25) (.39) (.28) Net realized and unrealized 133.30 29.79 11.29 6.95 20.83 gain (loss) Total from investment 132.90 29.45 11.04 6.56 20.55 operations Less Distributions From net realized gain (19.80) - (12.39) (3.68) (8.05) In excess of net realized gain - - (3.30) - - Total distributions (19.80) - (15.69) (3.68) (8.05) Redemption fees added to paid .12 .12 .08 .15 .12 in capital Net asset value, end of period $ 195.92 $ 82.70 $ 53.13 $ 57.70 $ 54.67 TOTAL RETURN A, B 184.11% 55.66% 24.92% 12.64% 50.71% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 7,919,951 $ 1,367,148 $ 691,924 $ 478,444 $ 483,026 (000 omitted) Ratio of expenses to average 1.05% 1.24% 1.38% 1.49% 1.40% net assets Ratio of expenses to average 1.04% E 1.20% E 1.30% E 1.44% E 1.39% E net assets after expense reductions Ratio of net investment (.34)% (.54)% (.45)% (.72)% (.52)% income to average net assets Portfolio turnover rate 210% 339% 556% 549% 112%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND FROM KONINKLIJKE PHILIPS ELECTRONICS NV ADR WHICH AMOUNTED TO $.07 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 TELECOMMUNICATIONS
Years ended February 28, 2000 F 1999 1998 1997 1996 F SELECTED PER-SHARE DATA Net asset value, beginning of $ 61.85 $ 53.37 $ 41.80 $ 44.87 $ 38.34 period Income from Investment Operations Net investment income (loss) C (.12) (.06) (.25) .12 D .51 Net realized and unrealized 49.58 11.43 18.20 2.92 9.15 gain (loss) Total from investment 49.46 11.37 17.95 3.04 9.66 operations Less Distributions From net investment income - - - (.16) (.39) From net realized gain (10.48) (2.96) (6.44) (5.98) (2.75) Total distributions (10.48) (2.96) (6.44) (6.14) (3.14) Redemption fees added to paid .04 .07 .06 .03 .01 in capital Net asset value, end of period $ 100.87 $ 61.85 $ 53.37 $ 41.80 $ 44.87 TOTAL RETURN A, B 84.89% 22.21% 46.52% 7.85% 25.79% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 1,888,217 $ 824,175 $ 643,449 $ 388,535 $ 468,300 (000 omitted) Ratio of expenses to average 1.12% 1.27% 1.51% 1.51% 1.52% net assets Ratio of expenses to average 1.09% E 1.25% E 1.48% E 1.47% E 1.52% net assets after expense reductions Ratio of net investment (.15)% (.11)% (.53)% .27% 1.17% income (loss) to average net assets Portfolio turnover rate 173% 150% 157% 175% 89%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.07 PER SHARE. E FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. F FOR THE YEAR ENDED FEBRUARY 29 TRANSPORTATION
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 25.04 $ 28.34 $ 22.23 $ 21.92 $ 20.53 period Income from Investment Operations Net investment income (loss) C (.14) (.18) (.02) (.13) (.09) D Net realized and unrealized .93 (.58) 8.85 1.06 2.60 gain (loss) Total from investment .79 (.76) 8.83 .93 2.51 operations Less Distributions From net realized gain (4.97) (2.64) (2.80) (.71) (1.22) Redemption fees added to paid .10 .10 .08 .09 .10 in capital Net asset value, end of period $ 20.96 $ 25.04 $ 28.34 $ 22.23 $ 21.92 TOTAL RETURN A, B 2.15% (1.73)% 41.15% 4.67% 12.95% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 10,202 $ 19,855 $ 64,282 $ 8,890 $ 11,445 (000 omitted) Ratio of expenses to average 1.77% 1.96% 1.58% 2.50% F 2.47% F net assets Ratio of expenses to average 1.71% G 1.90% G 1.54% G 2.48% G 2.44% G net assets after expense reductions Ratio of net investment (.54)% (.68)% (.06)% (.58)% (.43)% income (loss) to average net assets Portfolio turnover rate 318% 182% 210% 148% 175%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME (LOSS) PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D INVESTMENT INCOME PER SHARE REFLECTS A SPECIAL DIVIDEND WHICH AMOUNTED TO $.05 PER SHARE. E FOR THE YEAR ENDED FEBRUARY 29 F FMR AGREED TO REIMBURSE A PORTION OF THE FUND'S EXPENSES, OR EXPENSES WERE LIMITED IN ACCORDANCE WITH A STATE EXPENSE LIMITATION. WITHOUT THIS REIMBURSEMENT, THE FUND'S EXPENSE RATIO WOULD HAVE BEEN HIGHER. G FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. UTILITIES GROWTH
Years ended February 28, 2000 E 1999 1998 1997 1996 E SELECTED PER-SHARE DATA Net asset value, beginning of $ 61.58 $ 53.50 $ 45.97 $ 43.03 $ 34.88 period Income from Investment Operations Net investment income C .48 .44 .54 .73 1.10 Net realized and unrealized 16.46 15.77 14.83 6.41 7.86 gain (loss) Total from investment 16.94 16.21 15.37 7.14 8.96 operations Less Distributions From net investment income (.42) (.25) (.58) (.70) (.84) From net realized gain (9.30) (7.93) (7.30) (3.54) - Total distributions (9.72) (8.18) (7.88) (4.24) (.84) Redemption fees added to paid .03 .05 .04 .04 .03 in capital Net asset value, end of period $ 68.83 $ 61.58 $ 53.50 $ 45.97 $ 43.03 TOTAL RETURN A, B 29.76% 32.17% 36.20% 18.13% 25.82% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 645,105 $ 507,841 $ 401,927 $ 256,844 $ 266,768 (000 omitted) Ratio of expenses to average 1.07% 1.18% 1.33% 1.47% 1.39% net assets Ratio of expenses to average 1.04% D 1.16% D 1.30% D 1.46% D 1.38% D net assets after expense reductions Ratio of net investment .72% .77% 1.11% 1.73% 2.76% income to average net assets Portfolio turnover rate 93% 113% 78% 31% 65%
A THE TOTAL RETURNS WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIODS SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C NET INVESTMENT INCOME PER SHARE HAS BEEN CALCULATED BASED ON AVERAGE SHARES OUTSTANDING DURING THE PERIOD. D FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. E FOR THE YEAR ENDED FEBRUARY 29 MONEY MARKET
Years ended February 28, 2000 D 1999 1998 1997 1996 D SELECTED PER-SHARE DATA Net asset value, beginning of $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 period Income from Investment Operations Net interest income .050 .050 .051 .049 .054 Less Distributions From net interest income (.050) (.050) (.051) (.049) (.054) Net asset value, end of period $ 1.000 $ 1.000 $ 1.000 $ 1.000 $ 1.000 TOTAL RETURN A, B 5.08% 5.08% 5.26% 5.02% 5.56% RATIOS AND SUPPLEMENTAL DATA Net assets, end of period $ 888,869 $ 1,126,174 $ 584,919 $ 848,168 $ 610,821 (000 omitted) Ratio of expenses to average .48% .50% .56% .56% .59% net assets Ratio of expenses to average .48% .49% C .56% .56% .59% net assets after expense reductions Ratio of net interest income 4.95% 5.03% 5.13% 4.92% 5.39% to average net assets
A THE TOTAL RETURN WOULD HAVE BEEN LOWER HAD CERTAIN EXPENSES NOT BEEN REDUCED DURING THE PERIOD SHOWN. B TOTAL RETURNS DO NOT INCLUDE THE ONE TIME SALES CHARGE. C FMR OR THE FUND HAS ENTERED INTO VARYING ARRANGEMENTS WITH THIRD PARTIES WHO EITHER PAID OR REDUCED A PORTION OF THE FUND'S EXPENSES. D FOR THE YEAR ENDED FEBRUARY 29 You can obtain additional information about the funds. The funds' SAI includes more detailed information about each fund and its investments. The SAI is incorporated herein by reference (legally forms a part of the prospectus). Each fund's annual and semi-annual reports include a discussion of the fund's holdings and recent market conditions and the fund's investment strategies that affected performance. For a free copy of any of these documents or to request other information or ask questions about a fund, call Fidelity at 1-800-544-8544. In addition, you may visit Fidelity's web site at www.fidelity.com for a free copy of a prospectus or an annual or semi-annual report or to request other information. The SAI, the funds' annual and semi-annual reports and other related materials are available from the Electronic Data Gathering, Analysis, and Retrieval (EDGAR) Database on the SEC's web site (http://www.sec.gov). You can obtain copies of this information, after paying a duplicating fee, by sending a request by e-mail to publicinfo@sec.gov or by writing the Public Reference Section of the SEC, Washington, D.C. 20549-0102. You can also review and copy information about the funds, including the funds' SAI, at the SEC's Public Reference Room in Washington, D.C. Call 1-202-942-8090 for information on the operation of the SEC's Public Reference Room. INVESTMENT COMPANY ACT OF 1940, FILE NUMBER, 811-3114. Fidelity, Select Portfolios, Fidelity Investments & (Pyramid) Design, Fidelity Investments, Fidelity Money Line, Fidelity Automatic Account Builder, Fidelity On-Line Xpress+, and Directed Dividends are registered trademarks of FMR Corp. FAST and Portfolio Advisory Services are services marks of FMR Corp. The third party marks appearing above are the marks of their respective owners. 1.701898.102 SEL-pro-0400 FIDELITY(registered trademark) SELECT PORTFOLIOS(registered trademark) STATEMENT OF ADDITIONAL INFORMATION APRIL 29, 2000 This statement of additional information (SAI) is not a prospectus. Portions of each fund's annual report are incorporated herein. The annual report is supplied with this SAI. To obtain a free additional copy of the prospectus, dated April 29, 2000, or an annual report, please call Fidelity at 1-800-544-8544 or visit Fidelity's web site at www.fidelity.com. TABLE OF CONTENTS PAGE Investment Policies and 87 Limitations Portfolio Transactions 95 Valuation 118 Performance 118 Additional Purchase, Exchange 215 and Redemption Information Distributions and Taxes 216 Trustees and Officers 217 Control of Investment Advisers 227 Management Contracts 227 Distribution Services 245 Transfer and Service Agent 255 Agreements Description of the Trust 260 Financial Statements 261 Appendix 261 (fidelity_logo_graphic)(registered trademark) 82 Devonshire Street, Boston, MA 02109 SEL-ptb-0400 1.474722.102 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. A 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 (the 1940 Act)) of the fund. However, except for the fundamental investment limitations listed below, the investment policies and limitations described in this SAI are not fundamental and may be changed without shareholder approval. INVESTMENT LIMITATIONS OF EACH STOCK FUND (EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO) THE FOLLOWING ARE THE FUNDS' FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. A FUND MAY NOT: (1) issue senior securities, except in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise 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 Gold Portfolio (see below); or (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. (8) The fund may, 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. ADDITIONAL FUNDAMENTAL INVESTMENT LIMITATIONS OF CERTAIN OF THE STOCK FUNDS. GOLD 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. FINANCIAL SERVICES PORTFOLIO, BANKING PORTFOLIO, AND HOME FINANCE PORTFOLIO 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, or securities of other investment companies) 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. THE FOLLOWING ARE NON-FUNDAMENTAL LIMITATIONS FOR EACH STOCK FUND (EXCEPT BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO), WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) For each fund (except Home Finance, Financial Services, and Banking), in order to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, the fund currently intends to comply with certain diversification limits imposed by Subchapter M. (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 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. (iv) The fund does not currently intend to hedge more than 40% of its total assets with short sales against the box under normal conditions. (v) 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 (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). (vi) 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. (vii) The fund does not currently intend to lend assets other than securities to other parties, except (a) by lending money (up to 15% of a fund's net assets) to a registered investment company or portfolio for which FMR or an affiliate serves as investment adviser, or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (viii) 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 objectives, policies, and limitations as the funds. For purposes of limitation (i), Subchapter M generally requires the fund to invest no more than 25% of its total assets in securities of any one issuer and to invest at least 50% of its total assets so that no more than 5% of the fund's total assets are invested in securities of any one issuer. However, Subchapter M allows unlimited investments in cash, cash items, government securities (as defined in Subchapter M) and securities of other investment companies. These tax requirements are generally applied at the end of each quarter of the fund's taxable year. With respect to limitation (vi), if through a change in values, net assets, or other circumstances, the fund were in a position where more than 10% of its net assets were invested in illiquid securities, it would consider appropriate steps to protect liquidity. For purposes of limitation (4), FMR considers an issuer to be principally engaged in a business activity if: (i) at least 50% of an issuer's assets, income, sales or profits are committed to, or derived from, the business activity, or (ii) a third party has given the issuer an industry or sector classification consistent with the designated business activity. For each of Brokerage and Investment Management and Financial Services, an issuer that derives more than 15% of revenues or profits from brokerage or investment management activities is considered to be principally engaged in the business activities identified for the fund. For purposes of limitations (1) and (2) for Gold Portfolio, FMR currently intends to treat investments in securities whose redemption value is indexed to the price of gold or other precious metals as investments in precious metals. For the funds' limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" on page 10. INVESTMENT LIMITATIONS OF BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO THE FOLLOWING ARE THE FUNDS' FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. A FUND MAY NOT: (1) issue senior securities, except in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise permitted under the Investment Company Act of 1940; (2) borrow money, except that the 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 the fund may be considered an underwriter within the meaning of the Securities Act of 1933 in the disposition of restricted securities; (4) purchase the securities of any issuer if, as a result, less than 25% of the fund's total assets 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 the 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 the 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 Natural Resources Portfolio (see below); or (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. (8) The fund may, notwithstanding any other fundamental investment policy or limitation, invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. NATURAL RESOURCES PORTFOLIO MAY NOT: (1) purchase or sell physical commodities other than precious metals, provided that the fund may sell physical commodities acquired as a result of ownership of securities or other instruments. This limitation shall not prevent the fund from purchasing or selling options and futures contracts or from investing in securities or other instruments backed by physical commodities. THE FOLLOWING ARE NON-FUNDAMENTAL LIMITS FOR BUSINESS SERVICES AND OUTSOURCING PORTFOLIO, CYCLICAL INDUSTRIES PORTFOLIO, MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO, AND NATURAL RESOURCES PORTFOLIO, WHICH MAY BE CHANGED WITHOUT SHAREHOLDER APPROVAL. (i) For each fund, in order to qualify as a "regulated investment company" under Subchapter M of the Internal Revenue Code of 1986, as amended, the fund currently intends to comply with certain diversification limits imposed by Subchapter M. (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 does not currently intend to hedge more than 40% of its total assets with short sales against the box under normal conditions. (v) 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 (reverse repurchase agreements are treated as borrowings for purposes of fundamental investment limitation (2)). (vi) 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. (vii) The fund does not currently intend to lend assets other than securities to other parties, except by (a) lending money (up to 15% of the fund's net assets) to a registered investment company or portfolio for which Fidelity Management & Research Company or an affiliate serves as investment adviser, or (b) acquiring loans, loan participations, or other forms of direct debt instruments and, in connection therewith, assuming any associated unfunded commitments of the sellers. (This limitation does not apply to purchases of debt securities or to repurchase agreements.) (viii) The fund does not currently intend to invest all of its assets in the securities of a single open-end management investment company managed by Fidelity Management & Research Company or an affiliate or successor with substantially the same fundamental investment objective, policies, and limitations as the fund. For purposes of limitation (i), Subchapter M generally requires the fund to invest no more than 25% of its total assets in securities of any one issuer and to invest at least 50% of its total assets so that no more than 5% of the fund's total assets are invested in securities of any one issuer. However, Subchapter M allows unlimited investments in cash, cash items, government securities (as defined in Subchapter M) and securities of other investment companies. These tax requirements are generally applied at the end of each quarter of the fund's taxable year. With respect to limitation (vi), if through a change in values, net assets, or other circumstances, the fund were in a position where more than 10% of its net assets were invested in illiquid securities, it would consider appropriate steps to protect liquidity. For purposes of limitation (4), FMR considers an issuer to be principally engaged in a business activity if: (i) at least 50% of an issuer's assets, income, sales or profits are committed to, or derived from, the business activity, or (ii) a third party has given the issuer an industry or sector classification consistent with the designated business activity. For purposes of limitation (1) for Natural Resources Portfolio, FMR currently intends to treat investments in securities whose redemption value is indexed to the price of precious metals as investments in precious metals. For the funds' limitations on futures and options transactions, see the section entitled "Limitations on Futures and Options Transactions" on page 10. INVESTMENT LIMITATIONS OF SELECT MONEY MARKET PORTFOLIO (MONEY MARKET FUND) THE FOLLOWING ARE THE FUND'S FUNDAMENTAL INVESTMENT LIMITATIONS SET FORTH IN THEIR ENTIRETY. THE 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, or securities of other investment companies) 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 in connection with the insurance program established by the fund pursuant to an exemptive order issued by the Securities and Exchange Commission or as otherwise 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; or (9) invest in companies for the purpose of exercising control or management. (10) In addition the fund may, 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 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 securities issued or guaranteed by the U.S. Government or any of its agencies or instrumentalities, or securities of other money market funds) if, as a result, more than 5% of its total assets would be invested in 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. (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 purchase physical commodities or purchase or sell futures contracts based on physical commodities. (vii) The fund does not currently intend to lend assets other than securities to other parties, except by lending money (up to 15% 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.) (viii) 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. For purposes of limitations (1) and (i), certain securities subject to guarantees (including insurance, letters of credit and demand features) are not considered securities of their issuer, but are subject to separate diversification requirements, in accordance with industry standard requirements for money market funds. With respect to limitation (v), if through a change in values, net assets, or other circumstances, the fund were in a position where more than 10% of its net assets were invested in illiquid securities, it would consider appropriate steps to protect liquidity. BROKERAGE AND INVESTMENT MANAGEMENT PORTFOLIO. The extent to which the fund may invest in a company that engages in securities-related activities is limited by federal securities laws. FINANCIAL SERVICES PORTFOLIO. The extent to which the fund may invest in a company that engages in securities-related activities is limited by federal securities laws. MULTIMEDIA PORTFOLIO. The extent to which the fund may invest in corporate broadcast licensees is limited by Federal Communications Commission regulations. The following pages contain more detailed information about types of instruments in which a fund may invest, strategies FMR may employ in pursuit of a fund's investment objective, and a summary of related risks. FMR may not buy all of these instruments or use all of these techniques unless it believes that doing so will help a fund achieve its goal. AFFILIATED BANK TRANSACTIONS. A fund may engage in transactions with financial institutions that are, or may be considered to be, "affiliated persons" of the fund under the 1940 Act. These transactions may involve 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 borrowings. In accordance with exemptive orders issued by the Securities and Exchange Commission (SEC), the Board of Trustees has established and periodically reviews procedures applicable to transactions involving affiliated financial institutions. ASSET-BACKED SECURITIES represent interests in pools of mortgages, loans, receivables or other assets. Payment of interest and repayment of principal 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. Asset-backed security values may also be affected by other factors including changes in interest rates, the availability of information concerning the pool and its structure, the creditworthiness of the servicing agent for the pool, the originator of the loans or receivables, or the entities providing the credit enhancement. In addition, these securities may be subject to prepayment risk. BORROWING. Each fund may borrow from banks or from other funds advised by FMR or its affiliates, or through reverse repurchase agreements. If a fund borrows money, its share price may be subject to greater fluctuation until the borrowing is paid off. If a fund makes additional investments while borrowings are outstanding, this may be considered a form of leverage. CASH MANAGEMENT. A fund can hold uninvested cash or can invest it in cash equivalents such as money market securities, repurchase agreements or shares of money market funds. Generally, these securities offer less potential for gains than other types of securities. CENTRAL CASH FUNDS are money market funds managed by FMR or its affiliates that seek to earn a high level of current income (free from federal income tax in the case of a municipal money market fund) while maintaining a stable $1.00 share price. The funds comply with industry-standard requirements for money market funds regarding the quality, maturity, and diversification of their investments. COMMON STOCK represents an equity or ownership interest in an issuer. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds and preferred stock take precedence over the claims of those who own common stock. CONVERTIBLE SECURITIES are bonds, debentures, notes, preferred stocks or other securities that may be converted or exchanged (by the holder or by the issuer) into shares of the underlying common stock (or cash or securities of equivalent value) at a stated exchange ratio. A convertible security may also be called for redemption or conversion by the issuer after a particular date and under certain circumstances (including a specified price) established upon issue. If a convertible security held by a fund is called for redemption or conversion, the fund could be required to tender it for redemption, convert it into the underlying common stock, or sell it to a third party. Convertible securities generally have less potential for gain or loss than common stocks. Convertible securities generally provide yields higher than the underlying common stocks, but generally lower than comparable non-convertible securities. Because of this higher yield, convertible securities generally sell at prices above their "conversion value," which is the current market value of the stock to be received upon conversion. The difference between this conversion value and the price of convertible securities will vary over time depending on changes in the value of the underlying common stocks and interest rates. When the underlying common stocks decline in value, convertible securities will tend not to decline to the same extent because of the interest or dividend payments and the repayment of principal at maturity for certain types of convertible securities. However, securities that are convertible other than at the option of the holder generally do not limit the potential for loss to the same extent as securities convertible at the option of the holder. When the underlying common stocks rise in value, the value of convertible securities may also be expected to increase. At the same time, however, the difference between the market value of convertible securities and their conversion value will narrow, which means that the value of convertible securities will generally not increase to the same extent as the value of the underlying common stocks. Because convertible securities may also be interest-rate sensitive, their value may increase as interest rates fall and decrease as interest rates rise. Convertible securities are also subject to credit risk, and are often lower-quality securities. COMPANIES "PRINCIPALLY ENGAGED" IN A DESIGNATED BUSINESS ACTIVITY. For purposes of each stock fund's policy of investing at least 80% of its assets in securities of companies principally engaged in the business activities identified for the fund, FMR considers a company to be principally engaged in a designated business activity if: (i) at least 50% of a company's assets, income, sales or profits are committed to, or derived from, the business activity, or (ii) a third party has given the company an industry or sector classification consistent with the designated business activity. For each of Brokerage and Investment Management and Financial Services, an issuer that derives more than 15% of revenues or profits from brokerage or investment management activities is considered to be principally engaged in the business activities identified for the fund. DEBT SECURITIES are used by issuers to borrow money. The issuer usually pays a fixed, variable or floating rate of interest, and must repay the amount borrowed at the maturity of the security. Some debt securities, such as zero coupon bonds, do not pay interest but are sold at a deep discount from their face values. Debt securities include corporate bonds, government securities, and mortgage and other asset-backed securities. DOMESTIC AND FOREIGN INVESTMENTS (MONEY MARKET FUND ONLY) include U.S. dollar-denominated time deposits, certificates of deposit, and bankers' acceptances of U.S. banks and their branches located outside of the United States, U.S. branches and agencies of foreign banks, and foreign branches of foreign banks. Domestic and foreign investments may also include U.S. dollar-denominated securities issued or guaranteed by other U.S. or foreign issuers, including U.S. and foreign corporations or other business organizations, foreign governments, foreign government agencies or instrumentalities, and U.S. and foreign financial institutions, including savings and loan institutions, insurance companies, mortgage bankers, and real estate investment trusts, as well as banks. The obligations of foreign branches of U.S. banks may be general obligations of the parent bank in addition to the issuing branch, or may be limited by the terms of a specific obligation and by governmental regulation. Payment of interest and repayment of principal on these obligations may also be affected by governmental action in the country of domicile of the branch (generally referred to as sovereign risk). In addition, evidence of ownership of portfolio securities may be held outside of the United States and a fund may be subject to the risks associated with the holding of such property overseas. Various provisions of federal law governing the establishment and operation of U.S. branches do not apply to foreign branches of U.S. banks. Obligations of U.S. branches and agencies of foreign banks may be general obligations of the parent bank in addition to the issuing branch, or may be limited by the terms of a specific obligation and by federal and state regulation, as well as by governmental action in the country in which the foreign bank has its head office. Obligations of foreign issuers involve certain additional risks. These risks may include future unfavorable political and economic developments, withholding taxes, seizures of foreign deposits, currency controls, interest limitations, or other governmental restrictions that might affect repayment of principal or payment of interest, or the ability to honor a credit commitment. Additionally, there may be less public information available about foreign entities. Foreign issuers may be subject to less governmental regulation and supervision than U.S. issuers. Foreign issuers also generally are not bound by uniform accounting, auditing, and financial reporting requirements comparable to those applicable to U.S. issuers. EXPOSURE TO FOREIGN MARKETS. Foreign securities, foreign currencies, and securities issued by U.S. entities with substantial foreign operations may involve significant risks in addition to the risks inherent in U.S. investments. Foreign investments involve risks relating to local political, economic, regulatory, or social instability, military action or unrest, or adverse diplomatic developments, and may be affected by actions of foreign governments adverse to the interests of U.S. investors. Such actions may include 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. Additionally, governmental issuers of foreign debt securities may be unwilling to pay interest and repay principal when due and may require that the conditions for payment be renegotiated. There is no assurance that FMR will be able to anticipate these potential events or counter their effects. In addition, the value of securities denominated in foreign currencies and of dividends and interest paid with respect to such securities will fluctuate based on the relative strength of the U.S. dollar. It is anticipated that in most cases the best available market for foreign securities will be on an exchange or in over-the-counter (OTC) markets located outside of the United States. Foreign stock markets, while growing in volume and sophistication, are generally not as developed as those in the United States, and securities of some foreign issuers may be less liquid and more volatile than securities of comparable U.S. issuers. Foreign security trading, settlement and custodial practices (including those involving securities settlement where fund assets may be released prior to receipt of payment) are often less developed than those in U.S. markets, and may result in increased risk or substantial delays in the event of a failed trade or the insolvency of, or breach of duty by, a foreign broker-dealer, securities depository or foreign subcustodian. In addition, the costs associated with foreign investments, including withholding taxes, brokerage commissions and custodial costs, are generally higher than with U.S. investments. Foreign markets may offer less protection to investors than U.S. markets. Foreign issuers are generally not bound by uniform accounting, auditing, and financial reporting requirements and standards of practice comparable to those applicable to U.S. issuers. Adequate public information on foreign issuers may not be available, and it may be difficult to secure dividends and information regarding corporate actions on a timely basis. In general, there is less overall governmental supervision and regulation of securities exchanges, brokers, and listed companies than in the United States. OTC markets tend to be less regulated than stock exchange markets and, in certain countries, may be totally unregulated. Regulatory enforcement may be influenced by economic or political concerns, and investors may have difficulty enforcing their legal rights in foreign countries. Some foreign securities impose restrictions on transfer within the United States or to U.S. persons. Although securities subject to such 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 (ADRs) as well as other "hybrid" forms of ADRs, including European Depositary Receipts (EDRs) and Global Depositary Receipts (GDRs), are certificates evidencing ownership of shares of a foreign issuer. These certificates are issued by depository banks and generally trade on an established market in the United States or elsewhere. The underlying shares are held in trust by a custodian bank or similar financial institution in the issuer's home country. The depository bank may not have physical custody of the underlying securities at all times and may charge fees for various services, including forwarding dividends and interest and corporate actions. ADRs are alternatives to directly purchasing the underlying foreign securities in their national markets and currencies. However, ADRs continue to be subject to many of the risks associated with investing directly in foreign securities. These risks include foreign exchange risk as well as the political and economic risks of the underlying issuer's country. The risks of foreign investing may be magnified for investments in emerging markets. Security prices in emerging markets can be significantly more volatile than those in more developed markets, reflecting the greater uncertainties of investing in less established markets and economies. In particular, countries with emerging markets may have relatively unstable governments, may present the risks of nationalization of businesses, restrictions on foreign ownership and prohibitions on the repatriation of assets, and may have less protection of property rights than more developed countries. The economies of countries with emerging markets may be based on only a few industries, may be highly vulnerable to changes in local or global trade conditions, and may suffer from extreme and volatile debt burdens or inflation rates. Local securities markets may trade a small number of securities and may be unable to respond effectively to increases in trading volume, potentially making prompt liquidation of holdings difficult or impossible at times. FOREIGN CURRENCY TRANSACTIONS. A stock fund may conduct foreign currency transactions on a spot (i.e., cash) or forward basis (i.e., by entering into forward contracts to purchase or sell foreign currencies). Although foreign exchange dealers generally do not charge a fee for such conversions, they do realize a profit based on the difference between the prices at which they are buying and selling various currencies. Thus, a dealer may offer to sell a foreign currency at one rate, while offering a lesser rate of exchange should the counterparty desire to resell that currency to the dealer. Forward contracts are customized transactions that require a specific amount of a currency to be delivered at a specific exchange rate on a specific date or range of dates in the future. Forward contracts are generally traded in an interbank market 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 following discussion summarizes the principal currency management strategies involving forward contracts that could be used by a fund. A fund may also use swap agreements, indexed securities, and options and futures contracts relating to foreign currencies for the same purposes. A "settlement hedge" or "transaction hedge" is designed to protect a fund against an adverse change in foreign currency values between the date a security is purchased or sold and the date on which payment is made or received. Entering into a forward contract for the purchase or sale of the amount of foreign currency involved in an underlying security transaction for a fixed amount of U.S. dollars "locks in" the U.S. dollar price of the security. Forward contracts to purchase or sell a foreign currency may also be used by a fund 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. A fund 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. A fund could also hedge the position by selling another currency expected to perform similarly to the pound sterling. 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 direct 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. A fund may enter into forward contracts to shift its investment exposure from one currency into another. This may include shifting exposure from U.S. dollars to a foreign currency, or from one foreign currency to another foreign currency. This type of strategy, sometimes known as a "cross-hedge," will tend to reduce or eliminate exposure to the currency that is sold, and increase exposure to the currency that is purchased, much as if a fund had sold a security denominated in one currency and purchased an equivalent security denominated in another. Cross-hedges protect against losses resulting from a decline in the hedged currency, but will cause a fund to assume the risk of fluctuations in the value of the currency it purchases. Successful use of currency management strategies will depend on FMR's skill in analyzing currency values. Currency management strategies may substantially change a fund's investment exposure to changes in currency exchange rates and could result in losses to a 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, a fund would not participate in the currency's appreciation. If FMR hedges currency exposure through proxy hedges, a fund could realize currency losses from both the hedge and the security position 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, a fund will realize a loss. There is no assurance that FMR's use of currency management strategies will be advantageous to a fund or that it will hedge at appropriate times. FUNDS' RIGHTS AS SHAREHOLDERS. The funds do not intend to direct or administer the day-to-day operations of any company. A 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 in which a fund may engage, 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 a fund and the risk of actual liability if a fund is involved in litigation. No guarantee can be made, however, that litigation against a fund will not be undertaken or liabilities incurred. FUTURES AND OPTIONS. The following paragraphs pertain to futures and options: Combined Positions, Correlation of Price Changes, Futures Contracts, Futures Margin Payments, Limitations on Futures and Options Transactions, Liquidity of Options and Futures Contracts, Options and Futures Relating to Foreign Currencies, OTC Options, Purchasing Put and Call Options, and Writing Put and Call Options. COMBINED POSITIONS involve purchasing and writing 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, purchasing a put option and writing a call option on the same underlying instrument would 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, 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. A fund may invest in options and futures contracts based on securities with different issuers, maturities, or other characteristics from the securities in which the fund 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. FUTURES CONTRACTS. In purchasing a futures contract, the buyer agrees to purchase a specified underlying instrument at a specified future date. In selling a futures contract, the seller agrees to sell a specified underlying instrument at a specified future date. The price at which the purchase and sale will take place is fixed when the buyer and seller enter 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 Index SM (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 a fund's 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. LIMITATIONS ON FUTURES AND OPTIONS TRANSACTIONS. Each stock fund has filed 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. The funds intend to comply with Rule 4.5 under the Commodity Exchange Act, which limits the extent to which the funds can commit assets to initial margin deposits and option premiums. In addition, each stock 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 under normal conditions; 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 stock funds' investments in futures contracts and options, and the funds' policies regarding futures contracts and options discussed elsewhere in this SAI may be changed as regulatory agencies permit. 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 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, a fund's access to other assets held to cover its options or futures positions could also be impaired. 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. A fund may purchase and sell currency futures and may purchase and write currency options to increase or decrease its exposure to different foreign currencies. Currency options may also be purchased or written 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 a fund's 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. 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 OTC 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 the purchaser or writer 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. PURCHASING PUT AND CALL OPTIONS. By purchasing a put option, the purchaser 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 purchaser 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. The purchaser may terminate its position in a put option by allowing it to expire or by exercising the option. If the option is allowed to expire, the purchaser will lose the entire premium. If the option is exercised, the purchaser completes the sale of the underlying instrument at the strike price. A purchaser 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, 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. The writer of a put or call option takes the opposite side of the transaction from the option's purchaser. In return for receipt of the premium, the writer 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. The writer may seek to terminate a position in a put option 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, however, the writer must continue to be prepared to pay the strike price while the option is outstanding, regardless of price changes. When writing an option on a futures contract, a fund will be required to make margin payments to an FCM as described above for futures contracts. 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 the writer 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. ILLIQUID SECURITIES cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued. Difficulty in selling securities may result in a loss or may be costly to a fund. Under the supervision of the Board of Trustees, FMR determines the liquidity of a fund's investments and, through reports from FMR, the Board monitors investments in illiquid securities. In determining the liquidity of a fund's investments, FMR may consider various factors, including (1) the frequency and volume of trades and quotations, (2) the number of dealers and prospective purchasers in the marketplace, (3) dealer undertakings to make a market, and (4) the nature of the security and the market in which it trades (including any demand, put or tender features, the mechanics and other requirements for transfer, any letters of credit or other credit enhancement features, any ratings, the number of holders, the method of soliciting offers, the time required to dispose of the security, and the ability to assign or offset the rights and obligations of the security). INDEXED SECURITIES are instruments 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 provide for a maturity value that depends on the price of gold, resulting in a security whose price tends to rise and fall together with gold prices. Currency-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. 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 United States and abroad. Indexed securities may be more volatile than the underlying instruments. Indexed securities are also 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. Gold Portfolio and Natural Resources Portfolio may purchase securities indexed to the price of precious metals as an alternative to direct investment in precious metals. Because the value of these securities is directly linked to the price of gold or other precious metals, they involve risks and pricing characteristics similar to direct investments in precious metals. The funds will purchase precious metals-indexed securities only when FMR is satisfied with the creditworthiness of the issuers liable for payment. The securities generally will earn a nominal rate of interest while held by the funds, 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. INTERFUND BORROWING AND LENDING PROGRAM. Pursuant to an exemptive order issued by the SEC, a fund may lend money to, and borrow money from, other funds advised by FMR or its affiliates. A fund will lend through the program only when the returns are higher than those available from an investment in repurchase agreements, and will borrow through the program only when the costs are equal to or lower than the cost of bank loans. Interfund loans and borrowings normally extend overnight, but can have a maximum duration of seven days. Loans may be called on one day's notice. 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. INVESTMENT-GRADE DEBT SECURITIES. Investment-grade debt securities are medium and high-quality securities. Some may possess speculative characteristics and may be more sensitive to economic changes and to changes in the financial conditions of issuers. A debt security is considered to be investment-grade if it is rated investment-grade by Moody's Investors Service, Standard & Poor's, Duff & Phelps Credit Rating Co., or Fitch IBCA Inc., or is unrated but considered to be of equivalent quality by FMR. LOANS AND OTHER DIRECT DEBT INSTRUMENTS. Direct debt instruments are interests in amounts owed by a corporate, governmental, or other borrower to lenders or lending syndicates (loans and loan participations), to suppliers of goods or services (trade claims or other receivables), or to other parties. Direct debt instruments involve a risk of loss in case of default or insolvency of the borrower and may offer less legal protection to the purchaser in the event of fraud or misrepresentation, or there may be a requirement that a fund supply additional cash to a borrower on demand. Purchasers of loans and other forms of direct indebtedness depend primarily upon the creditworthiness of the borrower for payment of interest and repayment of principal. If scheduled interest or principal payments are not made, the value of the instrument may be adversely affected. Loans that are fully secured provide more protections than an unsecured loan in the event of failure to make scheduled interest or principal payments. However, there is no assurance that the liquidation of collateral from a secured loan would satisfy the borrower's obligation, or that the collateral could be liquidated. Indebtedness of borrowers whose creditworthiness is poor involves substantially greater risks and may be highly speculative. Borrowers that are in bankruptcy or restructuring may never pay off their indebtedness, or may pay only a small fraction of the amount owed. Direct indebtedness of developing countries also involves a risk that the governmental entities responsible for the repayment of the debt may be unable, or unwilling, to pay interest and repay principal when due. Investments in loans through direct assignment of a financial institution's interests with respect to a loan may involve additional risks. For example, if a loan is foreclosed, the purchaser could become part owner of any collateral, and would bear the costs and liabilities associated with owning and disposing of the collateral. In addition, it is conceivable that under emerging legal theories of lender liability, a purchaser could be held liable as a co-lender. Direct debt instruments may also involve a risk of insolvency of the lending bank or other intermediary. A loan is often administered by a bank or other financial institution that acts as agent for all holders. The agent administers the terms of the loan, as specified in the loan agreement. Unless, under the terms of the loan or other indebtedness, the purchaser has direct recourse against the borrower, the purchaser may have to rely on the agent to apply appropriate credit remedies against a borrower. If assets held by the agent for the benefit of a purchaser were determined to be subject to the claims of the agent's general creditors, the purchaser might incur certain costs and delays in realizing payment on the loan or loan participation and could suffer a loss of principal or interest. Direct indebtedness may include letters of credit, revolving credit facilities, or other standby financing commitments that obligate purchasers to make additional cash payments on demand. These commitments may have the effect of requiring a purchaser to increase its investment in a borrower at a time when it would not otherwise have done so, even if the borrower's condition makes it unlikely that the amount will ever be repaid. Each fund limits the amount of total assets that it will invest in any one issuer or in issuers within the same industry (see each fund's investment limitations). For purposes of these limitations, a fund generally will treat the borrower as the "issuer" of indebtedness held by the fund. In the case of loan participations where a bank or other lending institution serves as financial intermediary between a fund and the borrower, if the participation does not shift to the fund the direct debtor-creditor relationship with the borrower, SEC interpretations require a fund, in appropriate circumstances, to treat both the lending bank or other lending institution and the borrower as "issuers" for these purposes. Treating a financial intermediary as an issuer of indebtedness may restrict a fund's ability to invest in indebtedness related to a single financial intermediary, or a group of intermediaries engaged in the same industry, even if the underlying borrowers represent many different companies and industries. LOWER-QUALITY DEBT SECURITIES. Lower-quality debt securities 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-quality debt securities may fluctuate more than those of higher-quality debt securities and may decline significantly in periods of general economic difficulty, which may follow periods of rising interest rates. The market for lower-quality debt securities may be thinner and less active than that for higher-quality debt securities, which can adversely affect the prices at which the former are sold. Adverse publicity and changing investor perceptions may affect the liquidity of lower-quality debt securities and the ability of outside pricing services to value lower-quality debt securities. Because the risk of default is higher for lower-quality debt securities, FMR's research and credit analysis are an especially important part of managing securities of this type. 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. A 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 the fund's shareholders. MONEY MARKET INSURANCE. The money market fund participates in a mutual insurance company solely with other funds advised by FMR or its affiliates. This company provides insurance coverage for losses on certain money market instruments held by a participating fund (eligible instruments), including losses from nonpayment of principal or interest or a bankruptcy or insolvency of the issuer or credit support provider, if any. The insurance does not cover losses resulting from changes in interest rates or other market developments. The money market fund is charged an annual premium for the insurance coverage and may be subject to a special assessment of up to approximately two and one-half times the fund's annual gross premium if covered losses exceed certain levels. A participating fund may recover no more than $100 million annually, including all other claims of insured funds, and may only recover if the amount of the loss exceeds 0.30% of its eligible instruments. The money market fund may incur losses regardless of the insurance. MONEY MARKET SECURITIES are high-quality, short-term obligations. Money market securities may be structured to be, or may employ a trust or other form so that they are, eligible investments for money market funds. For example, put features can be used to modify the maturity of a security or interest rate adjustment features can be used to enhance price stability. If a structure fails to function as intended, adverse tax or investment consequences may result. Neither the Internal Revenue Service (IRS) nor any other regulatory authority has ruled definitively on certain legal issues presented by certain structured securities. Future tax or other regulatory determinations could adversely affect the value, liquidity, or tax treatment of the income received from these securities or the nature and timing of distributions made by the fund. MUNICIPAL SECURITIES are issued to raise money for a variety of public or private purposes, including general financing for state and local governments, or financing for specific projects or public facilities. They may be issued in anticipation of future revenues and may be backed by the full taxing power of a municipality, the revenues from a specific project, or the credit of a private organization. The value of some or all municipal securities may be affected by uncertainties in the municipal market related to legislation or litigation involving the taxation of municipal securities or the rights of municipal securities holders. A municipal security may be owned directly or through a participation interest. PRECIOUS METALS. Precious metals, such as gold, silver, platinum and palladium, at times have been subject to substantial price fluctuations over short periods of time and may be affected by unpredictable monetary and political policies such as currency devaluations or revaluations, economic and social conditions within a country, trade imbalances, or trade or currency restrictions between countries. The prices of gold and other precious metals, however, 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. Investments in precious metals can present concerns such as delivery, storage and maintenance, possible illiquidity, and the unavailability of accurate market valuations. Although precious metals can be purchased in any form, including bullion and coins, 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. A fund may incur higher custody and transaction costs for precious metals than for securities. Also, precious metals investments do not pay income. For a fund to qualify as a regulated investment company under current federal tax law, gains from selling precious metals may not exceed 10% of the fund's gross income for its taxable year. This tax requirement could cause a fund to hold or sell precious metals or securities when it would not otherwise do so. PREFERRED STOCK represents an equity or ownership interest in an issuer that pays dividends at a specified rate and that has precedence over common stock in the payment of dividends. In the event an issuer is liquidated or declares bankruptcy, the claims of owners of bonds take precedence over the claims of those who own preferred and common stock. PUT FEATURES entitle the holder to sell a security back to the issuer or a third party at any time or at specified intervals. In exchange for this benefit, a fund may accept a lower interest rate. Securities with put features are subject to the risk that the put provider is unable to honor the put feature (purchase the security). Put providers often support their ability to buy securities on demand by obtaining letters of credit or other guarantees from other entities. Demand features, standby commitments, and tender options are types of put features. REAL ESTATE INVESTMENT TRUSTS. Equity real estate investment trusts own real estate properties, while mortgage real estate investment trusts make construction, development, and long-term mortgage loans. Their value may be affected by changes in the value of the underlying property of the trusts, the creditworthiness of the issuer, property taxes, interest rates, and tax and regulatory requirements, such as those relating to the environment. Both types of trusts are dependent upon management skill, are not diversified, and are subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and the possibility of failing to qualify for tax-free status of income under the Internal Revenue Code and failing to maintain exemption from the 1940 Act. REPURCHASE AGREEMENTS involve an agreement to purchase a security and to sell that security back to the original seller at an agreed-upon price. 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. As protection against the risk that the original seller will not fulfill its obligation, the securities are held in a separate account at a bank, marked-to-market daily, and maintained at a value at least equal to the sale price plus the accrued incremental amount. The value of the security purchased may be more or less than the price at which the counterparty has agreed to purchase the security. In addition, delays or losses could result if the other party to the agreement defaults or becomes insolvent. The funds will engage in repurchase agreement transactions with parties whose creditworthiness has been reviewed and found satisfactory by FMR. RESTRICTED SECURITIES are subject to legal restrictions on their sale. Difficulty in selling securities may result in a loss or be costly to a fund. 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, the holder of a registered security 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 it may be permitted to sell a security under an effective registration statement. If, during such a period, adverse market conditions were to develop, the holder might obtain a less favorable price than prevailed when it decided to seek registration of the security. REVERSE REPURCHASE AGREEMENTS. In a reverse repurchase agreement, a fund sells a security to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase that security at an agreed-upon price and time. The funds will enter into reverse repurchase agreements with parties whose creditworthiness has been reviewed and found satisfactory by FMR. Such transactions may increase fluctuations in the market value of fund assets and a fund's yield and may be viewed as a form of leverage. SECURITIES OF OTHER INVESTMENT COMPANIES, including shares of closed-end investment companies, unit investment trusts, and open-end investment companies, represent interests in professionally managed portfolios that may invest in any type of instrument. Investing in other investment companies involves substantially the same risks as investing directly in the underlying instruments, but may involve additional expenses at the investment company-level, such as portfolio management fees and operating expenses. Certain types of investment companies, such as closed-end investment companies, issue a fixed number of shares that trade on a stock exchange or over-the-counter at a premium or a discount to their net asset value. Others are continuously offered at net asset value, but may also be traded in the secondary market. The extent to which a fund can invest in securities of other investment companies is limited by federal securities laws. SECURITIES LENDING. A fund may lend securities to parties such as broker-dealers or other institutions, including Fidelity Brokerage Services, Inc. (FBSI). FBSI is a member of the New York Stock Exchange (NYSE) and a subsidiary of FMR Corp. Securities lending allows a fund to retain ownership of the securities loaned and, at the same time, earn additional income. The borrower provides the fund with collateral in an amount at least equal to the value of the securities loaned. The fund maintains the ability to obtain the right to vote or consent on proxy proposals involving material events affecting securities loaned. If the borrower defaults on its obligation to return the securities loaned because of insolvency or other reasons, a fund could experience delays and costs in recovering the securities loaned or in gaining access to the collateral. These delays and costs could be greater for foreign securities. If a fund is not able to recover the securities loaned, a fund may sell the collateral and purchase a replacement investment in the market. The value of the collateral could decrease below the value of the replacement investment by the time the replacement investment is purchased. Loans will be made only to parties deemed by FMR to be in good standing and when, in FMR's judgment, the income earned would justify the risks. Cash received as collateral through loan transactions may be invested in other eligible securities. Investing this cash subjects that investment, as well as the securities loaned, to market appreciation or depreciation. SHORT SALES "AGAINST THE BOX" are short sales of securities that a fund owns or has the right to obtain (equivalent in kind or amount to the securities sold short). If a 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. Short sales against the box could be used to protect the net asset value per share (NAV) of a money market fund in anticipation of increased interest rates, without sacrificing the current yield of the securities sold short. A money market fund will incur transaction costs in connection with opening and closing short sales against the box. A stock fund will incur transaction costs, including interest expenses, in connection with opening, maintaining, and closing short sales against the box. SOURCES OF LIQUIDITY OR CREDIT SUPPORT. Issuers may employ various forms of credit and liquidity enhancements, including letters of credit, guarantees, puts, and demand features, and insurance provided by domestic or foreign entities such as banks and other financial institutions. FMR may rely on its evaluation of the credit of the liquidity or credit enhancement provider in determining whether to purchase a security supported by such enhancement. In evaluating the credit of a foreign bank or other foreign entities, FMR will consider whether adequate public information about the entity is available and whether the entity may be subject to unfavorable political or economic developments, currency controls, or other government restrictions that might affect its ability to honor its commitment. Changes in the credit quality of the entity providing the enhancement could affect the value of the security or a fund's share price. STRIPPED SECURITIES are the separate income or principal components of a debt security. The risks associated with stripped securities are similar to those of other money market securities, although stripped securities may be more volatile. U.S. Treasury securities that have been stripped by a Federal Reserve Bank are obligations issued by the U.S. Treasury. Privately stripped government securities are created when a dealer deposits a U.S. Treasury security or other U.S. Government security with a custodian for safekeeping. The custodian issues separate receipts for the coupon payments and the principal payment, which the dealer then sells. Because the SEC does not consider privately stripped government securities to be U.S. Government securities for purposes of Rule 2a-7, a fund must evaluate them as it would non-government securities pursuant to regulatory guidelines applicable to money market funds. 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 United States 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. 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 the 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 the 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. A fund may be able to eliminate its exposure under a swap agreement either by assignment or other disposition, or by entering into an offsetting swap agreement with the same party or a similarly creditworthy party. TEMPORARY DEFENSIVE POLICIES. When FMR considers it appropriate for defensive purposes, each stock fund (except Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems, and Natural Resources) may temporarily invest substantially in investment-grade debt securities. Each of Business Services and Outsourcing, Cyclical Industries, Medical Equipment and Systems and Natural Resources reserves the right to invest without limitation in preferred stocks and investment-grade debt instruments for temporary, defensive purposes. VARIABLE AND FLOATING RATE SECURITIES provide for periodic adjustments in the interest rate paid on the security. Variable rate securities provide for a specified periodic adjustment in the interest rate, while floating rate securities have interest rates that change whenever there is a change in a designated benchmark rate. Some variable or floating rate securities are structured with put features that permit holders to demand payment of the unpaid principal balance plus accrued interest from the issuers or certain financial intermediaries. WARRANTS. Warrants are instruments which entitle the holder to buy an equity security at a specific price for a specific period of time. Changes in the value of a warrant do not necessarily correspond to changes in the value of its underlying security. The price of a warrant may be more volatile than the price of its underlying security, and a warrant may offer greater potential for capital appreciation as well as capital loss. Warrants do not entitle a holder to dividends or voting rights with respect to the underlying security and do not represent any rights in the assets of the issuing company. A warrant ceases to have value if it is not exercised prior to its expiration date. These factors can make warrants more speculative than other types of investments. WHEN-ISSUED AND FORWARD PURCHASE OR SALE TRANSACTIONS involve a commitment to purchase or sell specific securities at a predetermined price or yield in which payment and delivery take place after the customary settlement period for that type of security. Typically, no interest accrues to the purchaser until the security is delivered. When purchasing securities pursuant to one of these transactions, the purchaser assumes the rights and risks of ownership, including the risks of price and yield fluctuations and the risk that the security will not be issued as anticipated. Because payment for the securities is not required until the delivery date, these risks are in addition to the risks associated with a fund's investments. If a fund remains substantially fully invested at a time when a purchase is outstanding, the purchases may result in a form of leverage. When a fund has sold a security pursuant to one of these transactions, 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, a fund could miss a favorable price or yield opportunity or suffer a loss. A fund may renegotiate a when-issued or forward transaction and may sell the underlying securities before delivery, which may result in capital gains or losses for the fund. ZERO COUPON BONDS do not make interest payments; instead, they are sold at a discount from their face value and are redeemed at face value when they mature. Because zero coupon bonds do not pay current income, their prices can be more volatile than other types of fixed-income securities when interest rates change. In calculating a fund's dividend, a portion of the difference between a zero coupon bond's purchase price and its face value is considered income. PORTFOLIO TRANSACTIONS All orders for the purchase or sale of portfolio securities are placed on behalf of each fund by FMR pursuant to authority contained in the management contract. FMR is also responsible for the placement of transaction orders for other investment companies and investment accounts for which it or its affiliates act as investment adviser. In selecting broker-dealers, subject to 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 commissions; and, if applicable, arrangements for payment of fund expenses. If FMR grants investment management authority to a sub-adviser (see the section entitled "Management Contracts"), that sub-adviser is authorized to place orders for the purchase and sale of portfolio securities, and will do so in accordance with the policies described above. Generally, commissions for investments traded on foreign exchanges will be higher than for investments traded on U.S. exchanges and may not be subject to negotiation. Futures transactions are executed and cleared through FCMs who receive commissions for their services. Each fund may execute portfolio transactions with broker-dealers who provide research and execution services to the fund or other investment 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; and the availability of securities or the purchasers or sellers of securities. In addition, such broker-dealers may furnish analyses and reports concerning issuers, industries, securities, economic factors and trends, portfolio strategy, and performance of investment accounts; and effect securities transactions and perform functions incidental thereto (such as clearance and settlement). The selection of such broker-dealers for transactions in equity securities 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. For transactions in fixed-income securities, FMR's selection of broker-dealers is generally based on the availability of a security and its price and, to a lesser extent, on the overall quality of execution and other services, including research, provided by the broker-dealer. The receipt of research from broker-dealers that execute transactions on behalf of a fund may be useful to FMR in rendering investment management services to that 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 a fund. 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. Fixed-income securities are generally purchased from an issuer or underwriter acting as principal for the securities, on a net basis with no brokerage commission paid. However, the dealer is compensated by a difference between the security's original purchase price and the selling price, the so-called "bid-asked spread." Securities may also be purchased from underwriters at prices that include underwriting fees. Subject to applicable limitations of the federal securities laws, a fund may pay a broker-dealer 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 that fund or 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. To the extent permitted by applicable law, FMR is authorized to allocate portfolio transactions in a manner that takes into account assistance received in the distribution of shares of the funds or other Fidelity funds and to use the research services of brokerage and other firms that have provided such assistance. FMR may use research services provided by and place agency transactions with National Financial Services Corporation (NFSC) and Fidelity Brokerage Services Japan LLC (FBSJ), indirect 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 December 9, 1997, FMR used research services provided by and placed agency transactions with Fidelity Brokerage Services (FBS), an indirect subsidiary of FMR Corp. FMR may allocate brokerage transactions to broker-dealers (including affiliates of FMR) who have entered into arrangements with FMR under which the broker-dealer allocates a portion of the commissions paid by a fund toward the reduction of that fund's expenses. 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 investment accounts which they or their affiliates manage, unless certain requirements are satisfied. Pursuant to such requirements, the Board of Trustees has authorized NFSC to execute portfolio transactions on national securities exchanges in accordance with approved procedures and applicable SEC rules. The Trustees of each fund periodically review FMR's performance of its responsibilities in connection with the placement of portfolio transactions on behalf of the fund and review the commissions paid by the fund over representative periods of time to determine if they are reasonable in relation to the benefits to the fund. For the fiscal periods ended February 29, 2000 and February 28, 1999, the portfolio turnover rates for the stock funds are presented in the table below. Variations in turnover rate may be due to a fluctuating volume of shareholder purchase and redemption orders, market conditions, or changes in FMR's investment outlook. Turnover Rates Fiscal 2000 Fiscal 1999 Air Transportation 252% 260% Automotive 29% 96% Banking 94% 22% Biotechnology 72% 86% Brokerage and Investment 47% 59% Management Business Services and 54% 115% Outsourcing Chemicals 132% 141% Computers 129% 133% Construction and Housing 34% 226% Consumer Industries 96% 150% Cyclical Industries 211% 103% Defense and Aerospace 146% 221% Developing Communications 112% 299% Electronics 125% 160% Energy 124% 138% Energy Service 69% 75% Environmental Services 206% 123% Financial Services 57% 60% Food and Agriculture 38% 68% Gold 71% 59% Health Care 70% 66% Home Finance 91% 18% Industrial Equipment 119% 84% Industrial Materials 257% 82% Insurance 107% 72% Leisure 120% 107% Medical Delivery 154% 67% Medical Equipment and Systems 101% 85%A Multimedia 76% 109% Natural Gas 85% 107% Natural Resources 164% 155% Paper and Forest Products 383% 338% Retailing 88% 165% Software and Computer Services 59% 72% Technology 210% 339% Telecommunications 173% 150% Transportation 318% 182% Utilities Growth 93% 113% A Annualized The following tables show the brokerage commissions paid by the funds. Significant changes in brokerage commissions paid by a fund from year to year may result from changing asset levels throughout the year. A fund may pay both commissions and spreads in connection with the placement of portfolio transactions. For the fiscal years ended February 29, 2000, February 28, 1999, and February 28, 1998, the money market fund paid no brokerage commissions. The following table shows the total amount of brokerage commissions paid by each fund. Fiscal Year Ended Total Amount Paid Air Transportation February 28 2000(dagger) $ 216,120 1999 466,528 1998 377,945 Automotive 2000(dagger) 52,836 1999 166,706 1998 220,182 Banking 2000(dagger) 1,468,088 1999 615,558 1998 372,550 Biotechnology 2000(dagger) 882,899 1999 443,990 1998 843,401 Brokerage and Investment Management 2000(dagger) 459,021 1999 775,691 1998 735,065 Business Services and Outsourcing 2000(dagger) 52,285 1999 100,721 1998* 3,710 Chemicals 2000(dagger) 69,655 1999 152,343 1998 101,154 Computers 2000(dagger) 2,065,190 1999 1,257,001 1998 1,763,117 Construction and Housing 2000(dagger) 42,237 1999 370,610 1998 218,917 Consumer Industries 2000(dagger) 93,000 1999 117,209 1998 76,547 Cyclical Industries 2000(dagger) 10,598 1999 5,884 1998** 5,529 Defense and Aerospace 2000(dagger) 65,399 1999 163,499 1998 321,753 Developing Communications 2000(dagger) 757,426 1999 757,140 1998 699,196 Electronics February 28 2000(dagger) $ 4,409,649 1999 3,599,050 1998 8,057,183 Energy 2000(dagger) 671,869 1999 423,125 1998 481,212 Energy Service 2000(dagger) 1,346,429 1999 1,321,362 1998 1,428,931 Environmental Services 2000(dagger) 109,496 1999 72,365 1998 53,033 Financial Services 2000(dagger) 576,997 1999 506,934 1998 467,674 Food and Agriculture 2000(dagger) 184,348 1999 357,895 1998 271,283 Gold 2000(dagger) 778,215 1999 607,659 1998 1,178,299 Health Care 2000(dagger) 3,265,614 1999 2,810,021 1998 1,780,678 Home Finance 2000(dagger) 1,431,355 1999 858,979 1998 999,285 Industrial Equipment 2000(dagger) 38,997 1999 66,813 1998 186,022 Industrial Materials 2000(dagger) 56,133 1999 25,143 1998 138,995 Insurance 2000(dagger) 108,237 1999 171,027 1998 249,991 Leisure 2000(dagger) 543,147 1999 364,791 1998 444,121 Medical Delivery February 28 2000(dagger) $ 225,169 1999 244,378 1998 294,080 Medical Equipment and Systems 2000(dagger) 36,241 1999*** 14,974 Multimedia 2000(dagger) 190,136 1999 156,430 1998 213,979 Natural Gas 2000(dagger) 138,089 1999 155,015 1998 246,019 Natural Resources 2000(dagger) 51,772 1999 17,047 1998** 23,485 Paper and Forest Products 2000(dagger) 242,728 1999 140,355 1998 118,872 Retailing 2000(dagger) 419,112 1999 587,848 1998 721,512 Software and Computer Services 2000(dagger) 238,397 1999 273,818 1998 444,769 Technology 2000(dagger) 3,205,188 1999 1,912,128 1998 2,228,245 Telecommunications 2000(dagger) 1,996,047 1999 1,198,509 1998 1,091,330 Transportation 2000(dagger) 94,512 1999 86,899 1998 144,625 Utilities Growth 2000(dagger) 807,308 1999 789,881 1998 317,455 (dagger) Fiscal year ended February 29. * Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. The first table below shows the total amount of brokerage commissions paid by each fund to NFSC, FBS, and FBSJ, as applicable, for the past three fiscal years. The second table shows the approximate percentage of aggregate brokerage commissions paid by a fund to NFSC, FBS, and FBSJ for transactions involving the approximate percentage of the aggregate dollar amount of transactions for which the fund paid brokerage commissions for the fiscal year ended 2000. NFSC, FBS, and FBSJ are paid on a commission basis.
Total Amount Paid Fiscal Year Ended To NFSC To FBS To FBSJ Air Transportation February 28 2000(dagger) $ 23,162 $ 0 $ 0 1999 $ 73,991 $ 0 $ 0 1998 $ 70,756 $ 0 $ 0 Automotive 2000(dagger) $ 6,617 $ 0 $ 0 1999 $ 23,803 $ 0 $ 0 1998 $ 36,417 $ 0 $ 0 Banking 2000(dagger) $ 34,682 $ 0 $ 0 1999 $ 16,496 $ 0 $ 0 1998 $ 70,122 $ 0 $ 0 Biotechnology 2000(dagger) $ 35,822 $ 0 $ 0 1999 $ 31,302 $ 0 $ 0 1998 $ 114,067 $ 15,773 $ 0 Brokerage and Investment Management 2000(dagger) $ 17,881 $ 0 $ 912 1999 $ 47,015 $ 0 $ 0 1998 $ 86,544 $ 11,262 $ 0 Business Services and Outsourcing 2000(dagger) $ 4,996 $ 0 $ 0 1999 $ 16,127 $ 0 $ 0 1998* $ 45 $ 0 $ 0 Chemicals 2000(dagger) $ 8,076 $ 0 $ 0 1999 $ 21,237 $ 0 $ 0 1998 $ 12,782 $ 17,404 $ 0 Computers 2000(dagger) $ 137,531 $ 0 $ 0 1999 $ 217,026 $ 0 $ 0 1998 $ 240,381 $ 0 $ 0 Construction and Housing 2000(dagger) $ 5,722 $ 0 $ 0 1999 $ 51,030 $ 0 $ 0 1998 $ 46,802 $ 0 $ 0 Consumer Industries 2000(dagger) $ 11,823 $ 0 $ 0 1999 $ 17,657 $ 0 $ 0 1998 $ 15,031 $ 0 $ 0 Cyclical Industries 2000(dagger) $ 1,804 $ 0 $ 0 1999 $ 579 $ 0 $ 0 1998** $ 470 $ 0 $ 0 Defense and Aerospace February 28 2000(dagger) $ 6,543 $ 0 $ 0 1999 $ 29,426 $ 0 $ 0 1998 $ 60,895 $ 0 $ 0 Developing Communications 2000(dagger) $ 41,229 $ 0 $ 0 1999 $ 91,601 $ 0 $ 0 1998 $ 100,909 $ 3,085 $ 0 Electronics 2000(dagger) $ 267,827 $ 0 $ 0 1999 $ 363,022 $ 0 $ 0 1998 $ 1,038,942 $ 0 $ 0 Energy 2000(dagger) $ 41,409 $ 0 $ 0 1999 $ 48,921 $ 0 $ 0 1998 $ 56,921 $ 0 $ 0 Energy Service 2000(dagger) $ 117,730 $ 0 $ 0 1999 $ 132,958 $ 0 $ 0 1998 $ 208,445 $ 0 $ 0 Environmental Services 2000(dagger) $ 15,874 $ 0 $ 0 1999 $ 14,545 $ 0 $ 0 1998 $ 4,927 $ 0 $ 0 Financial Services 2000(dagger) $ 19,290 $ 0 $ 0 1999 $ 45,514 $ 0 $ 0 1998 $ 58,925 $ 0 $ 0 Food and Agriculture 2000(dagger) $ 13,213 $ 0 $ 0 1999 $ 54,460 $ 0 $ 0 1998 $ 44,060 $ 0 $ 0 Gold 2000(dagger) $ 17,440 $ 0 $ 0 1999 $ 16,916 $ 0 $ 0 1998 $ 91,784 $ 0 $ 0 Health Care 2000(dagger) $ 143,093 $ 0 $ 0 1999 $ 244,159 $ 0 $ 0 1998 $ 202,696 $ 39,030 $ 0 Home Finance 2000(dagger) $ 66,175 $ 0 $ 0 1999 $ 118,062 $ 0 $ 0 1998 $ 222,404 $ 11,072 $ 0 Industrial Equipment 2000(dagger) $ 4,565 $ 0 $ 0 1999 $ 8,504 $ 0 $ 0 1998 $ 28,906 $ 0 $ 0 Industrial Materials February 28 2000(dagger) $ 11,147 $ 0 $ 0 1999 $ 3,612 $ 0 $ 0 1998 $ 19,267 $ 0 $ 0 Insurance 2000(dagger) $ 6,528 $ 0 $ 0 1999 $ 17,412 $ 0 $ 0 1998 $ 41,261 $ 4,571 $ 0 Leisure 2000(dagger) $ 48,009 $ 0 $ 0 1999 $ 84,286 $ 0 $ 0 1998 $ 113,958 $ 0 $ 0 Medical Delivery 2000(dagger) $ 17,503 $ 0 $ 0 1999 $ 23,772 $ 0 $ 0 1998 $ 54,751 $ 0 $ 0 Medical Equipment and Systems 2000(dagger) $ 5,647 $ 0 $ 0 1999*** $ 3,290 $ 0 $ 0 Multimedia 2000(dagger) $ 24,819 $ 0 $ 0 1999 $ 41,770 $ 0 $ 0 1998 $ 40,201 $ 0 $ 0 Natural Gas 2000(dagger) $ 8,100 $ 0 $ 0 1999 $ 13,630 $ 0 $ 0 1998 $ 38,095 $ 0 $ 0 Natural Resources 2000(dagger) $ 4,865 $ 0 $ 0 1999 $ 2,189 $ 0 $ 0 1998** $ 1,465 $ 0 $ 0 Paper and Forest Products 2000(dagger) $ 15,067 $ 0 $ 0 1999 $ 15,977 $ 0 $ 0 1998 $ 11,543 $ 0 $ 0 Retailing 2000(dagger) $ 31,755 $ 0 $ 0 1999 $ 155,653 $ 0 $ 0 1998 $ 132,299 $ 0 $ 0 Software and Computer Services 2000(dagger) $ 6,868 $ 0 $ 0 1999 $ 38,702 $ 0 $ 0 1998 $ 71,604 $ 0 $ 0 Technology 2000(dagger) $ 325,672 $ 0 $ 0 1999 $ 323,190 $ 0 $ 0 1998 $ 349,497 $ 0 $ 0 Telecommunications February 28 2000(dagger) $ 62,950 $ 0 $ 11,564 1999 $ 123,641 $ 0 $ 0 1998 $ 81,847 $ 0 $ 0 Transportation 2000(dagger) $ 9,783 $ 0 $ 0 1999 $ 12,152 $ 0 $ 0 1998 $ 18,070 $ 0 $ 0 Utilities Growth 2000(dagger) $ 7,727 $ 0 $ 0 1999 $ 23,956 $ 0 $ 0 1998 $ 29,653 $ 1,975 $ 0
(dagger) Fiscal year ended February 29. * Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998.
Fiscal Year Ended 2000 % of Aggregate Commissions % of Aggregate Dollar Amount Paid to NFSC of Transactions Effected through NFSC Air Transportation(dagger) February 29 10.72% 28.26% Automotive(dagger) February 29 12.52% 25.78% Banking(dagger) February 29 2.36% 6.09% Biotechnology(dagger) February 29 4.06% 7.69% Brokerage and Investment February 29 3.90% 12.72% Management(dagger) Business Services and February 29 9.56% 15.54% Outsourcing(dagger) Chemicals(dagger) February 29 11.59% 24.31% Computers(dagger) February 29 6.66% 10.92% Construction and February 29 13.54% 32.94% Housing(dagger) Consumer Industries(dagger) February 29 12.71% 25.86% Cyclical Industries(dagger) February 29 17.02% 26.22% Defense and Aerospace(dagger) February 29 10.01% 19.50% Developing February 29 5.45% 7.81% Communications(dagger) Electronics(dagger) February 29 6.07% 8.05% Energy(dagger) February 29 6.16% 17.86% Energy Service(dagger) February 29 8.74% 20.31% Environmental Services(dagger) February 29 14.50% 30.98% Financial Services(dagger) February 29 3.34% 8.73% Food and Agriculture(dagger) February 29 7.17% 18.32% Gold(dagger) February 29 2.24% 5.02% Health Care(dagger) February 29 4.38% 10.13% Home Finance(dagger) February 29 4.62% 4.79% Industrial Equipment(dagger) February 29 11.71% 16.84% Industrial Materials(dagger) February 29 19.86% 34.19% Insurance(dagger) February 29 6.04% 13.40% Leisure(dagger) February 29 8.84% 18.11% Medical Delivery(dagger) February 29 7.77% 15.35% Medical Equipment and February 29 15.59% 29.72% Systems(dagger) Multimedia(dagger) February 29 13.06% 27.22% Natural Gas(dagger) February 29 5.86% 17.36% Natural Resources(dagger) February 29 9.40% 20.95% Paper and Forest February 29 6.21% 22.03% Products(dagger) Retailing(dagger) February 29 7.57% 16.58% Software and Computer February 29 2.88% 8.33% Services(dagger) Technology(dagger) February 29 10.16% 14.74% Telecommunications(dagger) February 29 3.16% 6.21% Transportation(dagger) February 29 10.35% 22.83% Utilities Growth(dagger) February 29 0.96% 2.18%
% of Aggregate Commissions % of Aggregate Dollar Amount % of Aggregate Commissions Paid to FBS of Transactions Effected Paid to FBSJ through FBS Air Transportation(dagger) 0% 0% 0% Automotive(dagger) 0% 0% 0% Banking(dagger) 0% 0% 0% Biotechnology(dagger) 0% 0% 0% Brokerage and Investment 0% 0% 0.20% Management(dagger) Business Services and 0% 0% 0% Outsourcing(dagger) Chemicals(dagger) 0% 0% 0% Computers(dagger) 0% 0% 0% Construction and 0% 0% 0% Housing(dagger) Consumer Industries(dagger) 0% 0% 0% Cyclical Industries(dagger) 0% 0% 0% Defense and Aerospace(dagger) 0% 0% 0% Developing 0% 0% 0% Communications(dagger) Electronics(dagger) 0% 0% 0% Energy(dagger) 0% 0% 0% Energy Service(dagger) 0% 0% 0% Environmental Services(dagger) 0% 0% 0% Financial Services(dagger) 0% 0% 0% Food and Agriculture(dagger) 0% 0% 0% Gold(dagger) 0% 0% 0% Health Care(dagger) 0% 0% 0% Home Finance(dagger) 0% 0% 0% Industrial Equipment(dagger) 0% 0% 0% Industrial Materials(dagger) 0% 0% 0% Insurance(dagger) 0% 0% 0% Leisure(dagger) 0% 0% 0% Medical Delivery(dagger) 0% 0% 0% Medical Equipment and 0% 0% 0% Systems(dagger) Multimedia(dagger) 0% 0% 0% Natural Gas(dagger) 0% 0% 0% Natural Resources(dagger) 0% 0% 0% Paper and Forest 0% 0% 0% Products(dagger) Retailing(dagger) 0% 0% 0% Software and Computer 0% 0% 0% Services(dagger) Technology(dagger) 0% 0% 0% Telecommunications(dagger) 0% 0% 0.58% Transportation(dagger) 0% 0% 0% Utilities Growth(dagger) 0% 0% 0%
% of Aggregate Dollar Amount of Transactions Effected through FBSJ Air Transportation(dagger) 0% Automotive(dagger) 0% Banking(dagger) 0% Biotechnology(dagger) 0% Brokerage and Investment 0.29% Management(dagger) Business Services and 0% Outsourcing(dagger) Chemicals(dagger) 0% Computers(dagger) 0% Construction and 0% Housing(dagger) Consumer Industries(dagger) 0% Cyclical Industries(dagger) 0% Defense and Aerospace(dagger) 0% Developing 0% Communications(dagger) Electronics(dagger) 0% Energy(dagger) 0% Energy Service(dagger) 0% Environmental Services(dagger) 0% Financial Services(dagger) 0% Food and Agriculture(dagger) 0% Gold(dagger) 0% Health Care(dagger) 0% Home Finance(dagger) 0% Industrial Equipment(dagger) 0% Industrial Materials(dagger) 0% Insurance(dagger) 0% Leisure(dagger) 0% Medical Delivery(dagger) 0% Medical Equipment and 0% Systems(dagger) Multimedia(dagger) 0% Natural Gas(dagger) 0% Natural Resources(dagger) 0% Paper and Forest 0% Products(dagger) Retailing(dagger) 0% Software and Computer 0% Services(dagger) Technology(dagger) 0% Telecommunications(dagger) 0.63% Transportation(dagger) 0% Utilities Growth(dagger) 0%
(dagger) The difference between the percentage of aggregate brokerage commissions paid to, and the percentage of the aggregate dollar amount of transactions effected through, NFSC is a result of the low commission rates charged by NFSC. The following table shows the dollar amount of brokerage commissions paid to firms for providing research services and the approximate dollar amount of the transactions involved for the fiscal year ended 2000.
Fiscal Year Ended 2000 $ Amount of Commissions Paid $ Amount of Brokerage to Firms for Providing Transactions Involved* Research Services* Air Transportation February 29 $ 197,518 $ 168,971,729 Automotive February 29 $ 40,811 $ 33,978,205 Banking February 29 $ 1,398,705 $ 1,196,892,423 Biotechnology February 29 $ 716,181 $ 761,035,683 Brokerage and Investment February 29 $ 397,589 $ 381,923,504 Management Business Services and February 29 $ 36,293 $ 26,574,516 Outsourcing Chemicals February 29 $ 48,525 $ 44,020,808 Computers February 29 $ 1,893,851 $ 2,252,177,306 Construction and Housing February 29 $ 32,299 $ 22,206,775 Consumer Industries February 29 $ 72,652 $ 61,492,977 Cyclical Industries February 29 $ 6,126 $ 7,240,968 Defense and Aerospace February 29 $ 54,420 $ 48,929,369 Developing Communications February 29 $ 525,787 $ 789,733,201 Electronics February 29 $ 3,898,464 $ 3,932,880,277 Energy February 29 $ 597,576 $ 322,411,666 Energy Service February 29 $ 1,268,155 $ 781,581,573 Environmental Services February 29 $ 88,267 $ 31,888,439 Financial Services February 29 $ 525,708 $ 510,253,562 Food and Agriculture February 29 $ 166,210 $ 119,644,938 Gold February 29 $ 697,893 $ 203,483,798 Health Care February 29 $ 3,154,240 $ 2,878,657,848 Home Finance February 29 $ 1,268,540 $ 743,204,206 Industrial Equipment February 29 $ 30,533 $ 33,145,587 Industrial Materials February 29 $ 33,594 $ 31,414,596 Insurance February 29 $ 92,743 $ 99,969,519 Leisure February 29 $ 487,976 $ 491,770,697 Medical Delivery February 29 $ 205,755 $ 69,113,520 Medical Equipment and Systems February 29 $ 27,802 $ 26,736,094 Multimedia February 29 $ 174,939 $ 191,294,364 Natural Gas February 29 $ 120,268 $ 60,896,834 Natural Resources February 29 $ 38,814 $ 22,501,067 Paper and Forest Products February 29 $ 190,711 $ 96,596,204 Retailing February 29 $ 401,260 $ 371,624,261 Software and Computer Services February 29 $ 205,644 $ 264,434,307 Technology February 29 $ 2,835,925 $ 3,845,384,058 Telecommunications February 29 $ 1,610,675 $ 1,870,703,705 Transportation February 29 $ 76,222 $ 64,871,756 Utilities Growth February 29 $ 634,490 $ 533,560,435
* The provision of research services was not necessarily a factor in the placement of all this business with such firms. For the fiscal year ended February 29, 2000 the money market fund paid no brokerage commissions to firms for providing research services. The Trustees of each fund have approved procedures in conformity with Rule 10f-3 under the 1940 Act whereby a fund may purchase securities that are offered in underwritings in which an affiliate of FMR participates. These procedures prohibit the funds from directly or indirectly benefiting an FMR affiliate in connection with such underwritings. In addition, for underwritings where an FMR affiliate participates as a principal underwriter, certain restrictions may apply that could, among other things, limit the amount of securities that the funds could purchase in the underwriting. 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. Each fund seeks 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 each fund to seek such recapture. Although the Trustees and officers of each fund are substantially the same as those of other funds managed by FMR or its affiliates, investment decisions for each fund are made independently from those of other funds or investment accounts managed by FMR or its affiliates. It sometimes happens that the same security is held in the portfolio of more than one of these funds or investment accounts. Simultaneous transactions are inevitable when several funds and investment accounts are managed by the same investment adviser, particularly when the same security is suitable for the investment objective of more than one fund or investment account. 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 procedures believed to be appropriate and equitable for each fund. In some cases this system could have a detrimental effect on the price or value of the security as far as each fund is concerned. In other cases, however, the ability of the funds to participate in volume transactions will produce better executions and prices for the funds. It is the current opinion of the Trustees that the desirability of retaining FMR as investment adviser to each fund outweighs any disadvantages that may be said to exist from exposure to simultaneous transactions. VALUATION Each fund's NAV is the value of a single share. The NAV of each fund is computed by adding the value of the fund's investments, cash, and other assets, subtracting its liabilities, and dividing the result by the number of shares outstanding. STOCK FUNDS. Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary market is the United States are valued at last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price (on the local exchange) is unavailable, the last evaluated quote or closing bid price normally is used. Securities of other open-end investment companies are valued at their respective NAVs. Fixed-income securities and other assets for which market quotations are readily available may be valued at market values determined by such securities' most recent bid prices (sales prices if the principal market is an exchange) in the principal market in which they normally are traded, as furnished by recognized dealers in such securities or assets. Or, fixed-income securities and convertible securities may be valued on the basis of information furnished by a pricing service that uses a valuation matrix which incorporates both dealer-supplied valuations and electronic data processing techniques. Use of pricing services has been approved by the Board of Trustees. A number of pricing services are available, and the funds may use various pricing services or discontinue the use of any pricing service. Futures contracts and options are valued on the basis of market quotations, if available. Independent brokers or quotation services provide prices of foreign securities in their local currency. Fidelity Service Company (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 currencies 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 NAV. If an event that is expected to materially affect the value of a portfolio security occurs after the close of an exchange or market on which that security is traded, then that security will be valued in good faith by a committee appointed by the Board of Trustees. Short-term securities with remaining maturities of sixty days or less for which market quotations and information furnished by a pricing service are not readily available are valued either at amortized cost or at original cost plus accrued interest, both of which approximate current value. The procedures set forth above need not be used to determine the value of the securities owned by a fund if, in the opinion of a committee appointed by the Board of Trustees, some other method would more accurately reflect the fair value of such securities. For example, securities and other assets for which there is no readily available market value may be valued in good faith by a committee appointed by the Board of Trustees. In making a good faith determination of the value of a security, the committee may review price movements in futures contracts and ADRs, market and trading trends, the bid/ask quotes of brokers and off-exchange institutional trading. MONEY MARKET FUND. Portfolio securities and other assets are valued on the basis of amortized cost. This technique involves initially valuing an instrument at its cost as adjusted for amortization of premium or accretion of discount rather than its current market value. The amortized cost value of an instrument may be higher or lower than the price the fund would receive if it sold the instrument. Securities of other open-end investment companies are valued at their respective NAVs. At such intervals as they deem appropriate, the Trustees consider the extent to which NAV calculated by using market valuations would deviate from the $1.00 per share calculated using amortized cost valuation. 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. PERFORMANCE A fund 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 share price of a stock fund, the yield of a money market fund, and return fluctuate in response to market conditions and other factors, and the value of a stock fund's shares when redeemed may be more or less than their original cost. YIELD CALCULATIONS (MONEY MARKET FUND). To compute the yield for the money market fund 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 one 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 also may calculate an effective yield by compounding the base period return over a one-year period. In addition to the current yield, the money market fund may quote yields in advertising based on any historical seven-day period. Yields for the money market fund are calculated on the same basis as other money market funds, as required by applicable regulation. 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. When comparing investment alternatives, investors should also note the quality and maturity of the portfolio securities of 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. RETURN CALCULATIONS. 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 NAV over a stated period. A cumulative return reflects actual performance over a stated period of time. 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 of return 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 a 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 a fund. In addition to average annual returns, a fund may quote unaveraged or cumulative returns reflecting the simple change in value of an investment over a stated period. Average annual and cumulative returns may be quoted as a percentage or as a dollar amount, and may be calculated for a single investment, a series of investments, or a series of redemptions, over any time period. 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 return. Returns may be quoted on a before-tax or after-tax basis. After-tax returns reflect the return of a hypothetical account after payment of federal and/or state taxes using assumed tax rates. After-tax returns may assume that taxes are paid at the time of distribution or once a year or are paid in cash or by selling shares, that shares are held through the entire period, sold on the last day of the period, or sold at a future date, and distributions are reinvested or paid in cash. Returns may or may not include the effect of a fund's maximum sales charge or the effect of a stock fund's trading fee. Excluding a fund's sales charge or trading fee from a return calculation produces a higher return figure. 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 fund's NAVs, adjusted NAVs, and benchmark indexes may be used to exhibit performance. An adjusted NAV includes any distributions paid by a fund and reflects all elements of its return. Unless otherwise indicated, a fund's adjusted NAVs are not adjusted for sales charges, if any. MOVING AVERAGES. A stock 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. The 13-week and 39-week short-term moving averages for each fund are shown in the table below.
Fund 13-Week Short-Term Moving 39-Week Short-Term Moving Average Average Air Transportation* $ 28.14 $ 28.10 Automotive* $ 20.18 $ 22.49 Banking* $ 29.82 $ 32.55 Biotechnology* $ 74.75 $ 56.88 Brokerage and Investment $ 44.91 $ 42.23 Management* Business Services and $ 15.08 $ 14.13 Outsourcing* Chemicals* $ 36.27 $ 35.96 Computers* $ 105.81 $ 84.89 Construction and Housing* $ 19.29 $ 20.33 Consumer Industries* $ 30.90 $ 30.28 Cyclical Industries* $ 12.52 $ 12.78 Defense and Aerospace* $ 35.29 $ 36.37 Developing Communications* $ 63.40 $ 47.80 Electronics* $ 93.71 $ 73.32 Energy* $ 22.93 $ 23.45 Energy Service* $ 24.66 $ 23.31 Environmental Services* $ 9.76 $ 11.25 Financial Services* $ 89.16 $ 94.23 Food and Agriculture* $ 35.32 $ 39.22 Gold* $ 14.06 $ 13.77 Health Care* $ 128.02 $ 125.33 Home Finance* $ 34.97 $ 39.01 Industrial Equipment* $ 25.81 $ 25.94 Industrial Materials* $ 22.42 $ 23.09 Insurance* $ 31.83 $ 34.43 Leisure* $ 88.08 $ 82.52 Medical Delivery* $ 16.27 $ 16.87 Medical Equipment and Systems* $ 13.43 $ 12.70 Multimedia* $ 54.69 $ 49.08 Natural Gas* $ 14.49 $ 14.91 Natural Resources* $ 11.69 $ 11.66 Paper and Forest Products* $ 23.60 $ 23.40 Retailing* $ 54.24 $ 54.65 Software and Computer Services* $ 93.31 $ 71.48 Technology* $ 153.74 $ 114.94 Telecommunications* $ 89.99 $ 75.16 Transportation* $ 22.47 $ 23.66 Utilities Growth* $ 66.64 $ 63.13
* On February 29, 2000. HISTORICAL FUND RESULTS. The following table shows the money market fund's 7-day yield and each fund's returns for the fiscal periods ended February 29, 2000. The money market fund has a 3% sales charge, which is included in the average annual and cumulative returns. Each stock fund has a 3% sales charge and a trading fee, which are included in the average annual and cumulative returns.
Average Annual Returns Cumulative Returns Seven-Day Yield One Year Five Years Ten Years/ Life of Fund One Year Air Transportation 5.18% 18.35% 13.04% 5.18% Automotive -19.95% 3.62% 10.10% -19.95% Banking -24.48% 16.55% 18.52% -24.48% Biotechnology 164.95% 43.11% 29.82% 164.95% Brokerage and Investment 15.49% 29.00% 22.07% 15.49% Management Business Services and 8.71% n/a 21.46%* 8.71% Outsourcing Chemicals 7.70% 7.58% 11.52% 7.70% Computers 112.92% 51.87% 36.77% 112.92% Construction and Housing -20.80% 9.42% 11.39% -20.80% Consumer Industries -7.48% 18.64% 15.76%* -7.48% Cyclical Industries -1.71% n/a 5.53%* -1.71% Defense and Aerospace 0.07% 17.06% 14.74% 0.07% Developing Communications 158.07% 46.11% 34.37%* 158.07% Electronics 169.64% 60.16% 39.82% 169.64% Energy 40.47% 13.94% 8.23% 40.47% Energy Service 114.53% 23.71% 11.53% 114.53% Environmental Services -27.32% -0.88% -0.29% -27.32% Financial Services -17.17% 19.03% 18.75% -17.17% Food and Agriculture -30.09% 7.87% 11.43% -30.09% Gold 1.93% -5.29% -2.32% 1.93% Health Care -1.96% 23.42% 22.72% -1.96% Home Finance -27.21% 10.50% 18.81% -27.21% Industrial Equipment 15.34% 18.85% 15.48% 15.34% Industrial Materials -6.20% 0.76% 6.82% -6.20% Insurance -24.53% 14.50% 13.78% -24.53% Leisure 10.40% 25.75% 19.62% 10.40% Medical Delivery -22.09% -0.12% 10.59% -22.09% Medical Equipment and Systems 21.84% n/a 23.48%* 21.84% Multimedia 23.72% 24.87% 20.96% 23.72% Natural Gas 40.28% 12.00% 7.18%* 40.28% Natural Resources 43.89% n/a 5.22%* 43.89% Paper and Forest Products 16.48% 6.22% 10.82% 16.48% Retailing -14.86% 19.89% 18.46% -14.86% Software and Computer Services 94.74% 41.62% 32.19% 94.74% Technology 175.52% 55.52% 37.65% 175.52% Telecommunications 79.27% 34.22% 23.96% 79.27% Transportation -0.99% 10.19% 13.48% -0.99% Utilities Growth 25.80% 27.48% 18.03% 25.80% Money Market 5.53% 1.93% 4.56% 4.60% 1.93%
Five Years Ten Years/ Life of Fund Five Years Ten Years/ Life of Fund Air Transportation 132.22% 240.79% Automotive 19.46% 161.72% Banking 115.07% 446.71% Biotechnology 500.24% 1,259.94% Brokerage and Investment 257.26% 634.93% Management Business Services and n/a 49.48%* Outsourcing Chemicals 44.10% 197.61% Computers 707.88% 2,190.68% Construction and Housing 56.84% 193.98% Consumer Industries 135.07% 311.37%* Cyclical Industries n/a 17.50%* Defense and Aerospace 119.79% 295.38% Developing Communications 565.87% 1,639.44%* Electronics 953.83% 2,754.56% Energy 91.99% 120.63% Energy Service 189.69% 197.74% Environmental Services -4.33% -2.83% Financial Services 138.93% 457.42% Food and Agriculture 46.03% 195.24% Gold -23.81% -20.89% Health Care 186.40% 674.49% Home Finance 64.77% 460.36% Industrial Equipment 137.15% 321.80% Industrial Materials 3.85% 93.36% Insurance 96.78% 263.48% Leisure 214.46% 499.69% Medical Delivery -0.62% 173.60% Medical Equipment and Systems n/a 47.44%* Multimedia 203.58% 570.77% Natural Gas 76.25% 60.92%* Natural Resources n/a 16.45%* Paper and Forest Products 35.21% 179.25% Retailing 147.66% 444.06% Software and Computer Services 469.64% 1,529.22% Technology 809.68% 2,341.31% Telecommunications 335.62% 756.50% Transportation 62.41% 254.20% Utilities Growth 236.70% 424.75% Money Market 24.98% 56.79%
* From commencement of operations (June 29, 1990 for Consumer Industries and Developing Communications; April 21, 1993 for Natural Gas; March 3, 1997 for Cyclical Industries and Natural Resources; February 4, 1998 for Business Services and Outsourcing; and April 28, 1998 for Medical Equipment and Systems). Note: If FMR had not reimbursed certain fund expenses during these periods, Air Transportation's, Automotive's, Banking's, Biotechnology's, Brokerage and Investment Management's, Business Services and Outsourcing's, Chemicals', Construction and Housing's, Consumer Industries', Cyclical Industries', Defense and Aerospace's, Developing Communications', Electronics', Home Finance's, Industrial Equipment's, Industrial Materials', Insurance's, Multimedia's, Natural Resources', Paper and Forest Products', Retailing's, Software and Computer Services', and Transportation's returns would have been lower. The following tables show the income and capital elements of each fund's cumulative return. The tables compare each fund's return to the record of the S&P 500, the Dow Jones Industrial Average (DJIA), and the cost of living, as measured by the Consumer Price Index (CPI), over the same period. The S&P 500 and DJIA comparisons are provided to show how each fund's return compared to the record of a market capitalization-weighted index of common stocks and a narrower set of stocks of major industrial companies, respectively, over the same period. Because the money market fund invests in short-term fixed-income securities, common stocks represent a different type of investment from the fund. Common stocks generally offer greater growth potential than the fund, but generally experience greater price volatility, which means greater potential for loss. In addition, common stocks generally provide lower income than a fixed-income investment such as the fund. Each of the stock funds has the ability to invest in securities not included in either index, and its investment portfolio may or may not be similar in composition to the indexes. The S&P 500 and DJIA returns are based on the prices of unmanaged groups of stocks and, unlike each fund's returns, do not include the effect of brokerage commissions or other costs of investing. The following tables show the growth in value of a hypothetical $10,000 investment in each fund during the 10-year period ended February 29, 2000 or life of each fund, as applicable, assuming all distributions were reinvested. Returns are based on past results and are not an indication of future performance. Tax consequences of different investments (with the exception of foreign tax withholdings) have not been factored into the figures below. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Air Transportation Portfolio would have grown to $34,087, including the effect of the fund's maximum sales charge.
AIR TRANSPORTATION PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 23,538 $ 0 $ 10,549 $ 34,087 1999 $ 24,704 $ 0 $ 6,711 $ 31,415 1998 $ 23,903 $ 0 $ 6,271 $ 30,174 1997 $ 15,769 $ 0 $ 2,960 $ 18,729 1996 $ 18,786 $ 0 $ 3,263 $ 22,049 1995 $ 12,396 $ 0 $ 1,838 $ 14,234 1994 $ 15,235 $ 0 $ 1,024 $ 16,259 1993 $ 12,103 $ 0 $ 602 $ 12,708 1992 $ 12,601 $ 0 $ 261 $ 12,862 1991 $ 10,563 $ 0 $ 0 $ 10,563
AIR TRANSPORTATION PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Air Transportation Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $18,819. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $7,315 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Automotive Portfolio would have grown to $26,179, including the effect of the fund's maximum sales charge.
AUTOMOTIVE PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 15,848 $ 602 $ 9,729 $ 26,179 $ 52,547 1999 $ 19,186 $ 729 $ 11,778 $ 31,693 $ 47,029 1998 $ 22,664 $ 835 $ 11,146 $ 34,645 $ 39,278 1997 $ 20,916 $ 676 $ 6,625 $ 28,217 $ 29,094 1996 $ 18,007 $ 416 $ 4,974 $ 23,397 $ 23,061 1995 $ 16,351 $ 377 $ 4,517 $ 21,245 $ 17,120 1994 $ 20,999 $ 418 $ 2,888 $ 24,305 $ 15,947 1993 $ 17,051 $ 297 $ 1,284 $ 18,632 $ 14,719 1992 $ 14,142 $ 197 $ 776 $ 15,115 $ 13,300 1991 $ 10,170 $ 142 $ 0 $ 10,312 $ 11,465
AUTOMOTIVE PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Automotive Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $21,882. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $503 for dividends and $8,719 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Banking Portfolio would have grown to $54,678, including the effect of the fund's maximum sales charge.
BANKING PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 24,177 $ 3,433 $ 27,068 $ 54,678 $ 52,547 1999 $ 37,969 $ 4,691 $ 27,499 $ 70,159 $ 47,029 1998 $ 39,439 $ 4,418 $ 24,190 $ 68,047 $ 39,278 1997 $ 29,977 $ 3,002 $ 16,820 $ 49,799 $ 29,094 1996 $ 22,259 $ 1,870 $ 10,616 $ 34,745 $ 23,061 1995 $ 16,450 $ 1,117 $ 7,085 $ 24,652 $ 17,120 1994 $ 16,432 $ 750 $ 5,689 $ 22,871 $ 15,947 1993 $ 19,071 $ 689 $ 1,723 $ 21,483 $ 14,719 1992 $ 14,422 $ 427 $ 616 $ 15,465 $ 13,300 1991 $ 9,234 $ 162 $ 0 $ 9,396 $ 11,465
BANKING PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Banking Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $41,941. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $2,064 for dividends and $18,012 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Biotechnology Portfolio would have grown to $136,001, including the effect of the fund's maximum sales charge.
BIOTECHNOLOGY PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 71,859 $ 338 $ 63,804 $ 136,001 $ 52,547 1999 $ 27,700 $ 130 $ 21,948 $ 49,778 $ 47,029 1998 $ 23,125 $ 108 $ 15,921 $ 39,154 $ 39,278 1997 $ 22,937 $ 108 $ 10,677 $ 33,722 $ 29,094 1996 $ 24,518 $ 87 $ 7,253 $ 31,858 $ 23,061 1995 $ 16,948 $ 13 $ 5,014 $ 21,975 $ 17,120 1994 $ 18,496 $ 15 $ 5,471 $ 23,982 $ 15,947 1993 $ 15,140 $ 11 $ 4,479 $ 19,630 $ 14,719 1992 $ 22,073 $ 17 $ 2,811 $ 24,901 $ 13,300 1991 $ 17,002 $ 0 $ 598 $ 17,600 $ 11,465
BIOTECHNOLOGY PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Biotechnology Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $29,479. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $80 for dividends and $13,907 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Brokerage and Investment Management Portfolio would have grown to $73,500, including the effect of the fund's maximum sales charge.
BROKERAGE AND INVESTMENT INDEXES MANAGEMENT PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 53,268 $ 1,357 $ 18,875 $ 73,500 $ 52,547 1999 $ 47,987 $ 1,152 $ 12,555 $ 61,694 $ 47,029 1998 $ 46,378 $ 1,099 $ 11,412 $ 58,889 $ 39,278 1997 $ 30,033 $ 612 $ 6,730 $ 37,375 $ 29,094 1996 $ 21,557 $ 364 $ 3,986 $ 25,907 $ 23,061 1995 $ 18,083 $ 259 $ 1,611 $ 19,952 $ 17,120 1994 $ 20,694 $ 297 $ 1,843 $ 22,834 $ 15,947 1993 $ 16,579 $ 226 $ 0 $ 16,805 $ 14,719 1992 $ 14,911 $ 204 $ 0 $ 15,115 $ 13,300 1991 $ 9,677 $ 122 $ 0 $ 9,799 $ 11,465
Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Brokerage and Investment Management Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $21,420. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $420 for dividends and $9,117 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the period from February 4, 1998 (commencement of operations) to February 29, 2000, a hypothetical $10,000 investment in Business Services and Outsourcing Portfolio would have grown to $14,955, including the effect of the fund's maximum sales charge.
BUSINESS SERVICES AND INDEXES OUTSOURCING PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 13,580 $ 0 $ 1,375 $ 14,955 $ 13,961 1999 $ 13,163 $ 0 $ 172 $ 13,335 $ 12,495 1998* $ 10,563 $ 0 $ 0 $ 10,563 $ 10,435
BUSINESS SERVICES AND OUTSOURCING PORTFOLIO Fiscal Year Ended DJIA Cost of Living** 2000 $ 12,876 $ 10,501 1999 $ 11,655 $ 10,179 1998* $ 10,524 $ 10,019
* From February 4, 1998 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Business Services and Outsourcing Portfolio on February 4, 1998, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $11,387. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $1,348 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Chemicals Portfolio would have grown to $29,768, including the effect of the fund's maximum sales charge.
CHEMICALS PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 14,522 $ 841 $ 14,405 $ 29,768 $ 52,547 1999 $ 13,366 $ 707 $ 12,720 $ 26,793 $ 47,029 1998 $ 19,727 $ 987 $ 14,382 $ 35,096 $ 39,278 1997 $ 18,278 $ 907 $ 10,192 $ 29,377 $ 29,094 1996 $ 16,989 $ 768 $ 7,774 $ 25,531 $ 23,061 1995 $ 14,574 $ 612 $ 4,842 $ 20,028 $ 17,120 1994 $ 13,607 $ 445 $ 4,173 $ 18,225 $ 15,947 1993 $ 12,300 $ 281 $ 2,160 $ 14,741 $ 14,719 1992 $ 13,705 $ 149 $ 709 $ 14,563 $ 13,300 1991 $ 11,105 $ 47 $ 276 $ 11,428 $ 11,465
CHEMICALS PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Chemicals Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $25,601. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $597 for dividends and $10,203 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Computers Portfolio would have grown to $229,076, including the effect of the fund's maximum sales charge.
COMPUTERS PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 102,065 $ 2,623 $ 124,388 $ 229,076 $ 52,547 1999 $ 54,539 $ 1,401 $ 48,383 $ 104,323 $ 47,029 1998 $ 32,769 $ 842 $ 29,071 $ 62,682 $ 39,278 1997 $ 38,489 $ 989 $ 12,616 $ 52,094 $ 29,094 1996 $ 32,730 $ 840 $ 8,451 $ 42,021 $ 23,061 1995 $ 24,465 $ 629 $ 2,408 $ 27,502 $ 17,120 1994 $ 21,554 $ 553 $ 2,122 $ 24,229 $ 15,947 1993 $ 16,074 $ 412 $ 217 $ 16,703 $ 14,719 1992 $ 15,778 $ 406 $ 213 $ 16,397 $ 13,300 1991 $ 13,122 $ 120 $ 0 $ 13,242 $ 11,465
COMPUTERS PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Computers Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $58,702. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $311 for dividends and $30,640 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Construction and Housing Portfolio would have grown to $29,405, including the effect of the fund's maximum sales charge.
CONSTRUCTION AND HOUSING PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 14,878 $ 318 $ 14,209 $ 29,405 1999 $ 21,345 $ 456 $ 14,180 $ 35,981 1998 $ 21,866 $ 467 $ 14,444 $ 36,777 1997 $ 18,769 $ 372 $ 7,121 $ 26,262 1996 $ 16,687 $ 310 $ 5,139 $ 22,136 1995 $ 14,324 $ 200 $ 3,654 $ 18,178 1994 $ 16,909 $ 236 $ 3,640 $ 20,785 1993 $ 13,428 $ 188 $ 2,693 $ 16,309 1992 $ 11,654 $ 162 $ 2,327 $ 14,143 1991 $ 9,640 $ 135 $ 1,070 $ 10,845
CONSTRUCTION AND HOUSING INDEXES PORTFOLIO Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Construction and Housing Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $24,890. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $230 for dividends and $10,314 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the period from June 29, 1990 (commencement of operations) to February 29, 2000, a hypothetical $10,000 investment in Consumer Industries Portfolio would have grown to $41,144, including the effect of the fund's maximum sales charge.
CONSUMER INDUSTRIES PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 27,606 $ 234 $ 13,304 $ 41,144 1999 $ 30,856 $ 232 $ 12,016 $ 43,104 1998 $ 26,491 $ 200 $ 9,175 $ 35,866 1997 $ 20,040 $ 152 $ 5,361 $ 25,553 1996 $ 17,305 $ 130 $ 4,630 $ 22,065 1995 $ 13,493 $ 82 $ 3,397 $ 16,972 1994 $ 14,783 $ 90 $ 2,916 $ 17,789 1993 $ 12,581 $ 77 $ 1,193 $ 13,851 1992 $ 13,512 $ 83 $ 241 $ 13,836 1991* $ 10,505 $ 65 $ 0 $ 10,570
CONSUMER INDUSTRIES PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living** 2000 $ 48,166 $ 44,518 $ 13,064 1999 $ 43,109 $ 40,297 $ 12,664 1998 $ 36,003 $ 36,385 $ 12,463 1997 $ 26,669 $ 28,785 $ 12,286 1996 $ 21,138 $ 22,483 $ 11,925 1995 $ 15,693 $ 16,058 $ 11,617 1994 $ 14,618 $ 14,931 $ 11,293 1993 $ 13,492 $ 12,772 $ 11,016 1992 $ 12,191 $ 12,019 $ 10,670 1991* $ 10,509 $ 10,269 $ 10,377
* From June 29, 1990 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Consumer Industries Portfolio on June 29, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $19,689. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $97 for dividends and $7,663 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the period from March 3, 1997 (commencement of operations) to February 29, 2000, a hypothetical $10,000 investment in Cyclical Industries Portfolio would have grown to $11,757, including the effect of the fund's maximum sales charge.
CYCLICAL INDUSTRIES PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Divided Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 11,204 $ 0 $ 553 $ 11,757 1999 $ 11,048 $ 0 $ 546 $ 11,594 1998* $ 11,708 $ 0 $ 492 $ 12,200
CYCLICAL INDUSTRIES PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living** 2000 $ 17,956 $ 15,371 $ 10,633 1999 $ 16,071 $ 13,914 $ 10,307 1998* $ 13,422 $ 12,563 $ 10,144
* From March 3, 1997 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Cyclical Industries Portfolio on March 3, 1997, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $10,537. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $534 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Defense and Aerospace Portfolio would have grown to $39,545, including the effect of the fund's maximum sales charge.
DEFENSE AND AEROSPACE PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 28,511 $ 562 $ 10,472 $ 39,545 1999 $ 28,088 $ 553 $ 9,663 $ 38,304 1998 $ 31,174 $ 615 $ 10,725 $ 42,514 1997 $ 24,014 $ 473 $ 5,310 $ 29,797 1996 $ 22,379 $ 441 $ 2,896 $ 25,716 1995 $ 16,297 $ 321 $ 828 $ 17,446 1994 $ 15,882 $ 313 $ 559 $ 16,754 1993 $ 12,513 $ 176 $ 0 $ 12,689 1992 $ 12,388 $ 174 $ 0 $ 12,562 1991 $ 10,746 $ 106 $ 0 $ 10,850
DEFENSE AND AEROSPACE PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Defense and Aerospace Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $18,555. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $232 for dividends and $7,061 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the period from June 29, 1990 (commencement of operations) to February 29, 2000, a hypothetical $10,000 investment in Developing Communications Portfolio would have grown to $173,951, including the effect of the fund's maximum sales charge.
DEVELOPING COMMUNICATIONS PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 79,356 $ 0 $ 94,595 $ 173,951 1999 $ 31,738 $ 0 $ 33,627 $ 65,365 1998 $ 19,536 $ 0 $ 20,563 $ 40,099 1997 $ 19,090 $ 0 $ 12,194 $ 31,284 1996 $ 18,837 $ 0 $ 12,034 $ 30,871 1995 $ 19,788 $ 0 $ 5,549 $ 25,337 1994 $ 19,061 $ 0 $ 3,238 $ 22,299 1993 $ 15,947 $ 0 $ 1,174 $ 17,121 1992 $ 13,997 $ 0 $ 1,002 $ 14,999 1991* $ 10,777 $ 0 $ 0 $ 10,777
DEVELOPING COMMUNICATIONS INDEXES PORTFOLIO Fiscal Year Ended S&P 500 DJIA Cost of Living** 2000 $ 48,166 $ 44,518 $ 13,064 1999 $ 43,109 $ 40,297 $ 12,664 1998 $ 36,003 $ 36,385 $ 12,463 1997 $ 26,669 $ 28,785 $ 12,286 1996 $ 21,138 $ 22,483 $ 11,925 1995 $ 15,693 $ 16,058 $ 11,617 1994 $ 14,618 $ 14,931 $ 11,293 1993 $ 13,492 $ 12,772 $ 11,016 1992 $ 12,191 $ 12,019 $ 10,670 1991* $ 10,509 $ 10,269 $ 10,377
* From June 29, 1990 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Developing Communications Portfolio on June 29, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $34,145. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $15,957 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Electronics Portfolio would have grown to $285,464, including the effect of the fund's maximum sales charge.
ELECTRONICS PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 136,338 $ 169 $ 148,957 $ 285,464 $ 52,547 1999 $ 53,086 $ 66 $ 49,512 $ 102,664 $ 47,029 1998 $ 39,237 $ 49 $ 36,595 $ 75,881 $ 39,278 1997 $ 42,557 $ 52 $ 18,513 $ 61,122 $ 29,094 1996 $ 31,601 $ 39 $ 13,747 $ 45,387 $ 23,061 1995 $ 22,203 $ 28 $ 4,043 $ 26,274 $ 17,120 1994 $ 19,815 $ 24 $ 3,608 $ 23,447 $ 15,947 1993 $ 16,013 $ 20 $ 0 $ 16,033 $ 14,719 1992 $ 14,657 $ 18 $ 0 $ 14,675 $ 13,300 1991 $ 11,382 $ 14 $ 0 $ 11,396 $ 11,465
ELECTRONICS PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Electronics Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $51,970. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $11 for dividends and $27,833 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Energy Portfolio would have grown to $22,070, including the effect of the fund's maximum sales charge.
ENERGY PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 13,025 $ 1,080 $ 7,965 $ 22,070 $ 52,547 1999 $ 9,148 $ 692 $ 5,393 $ 15,233 $ 47,029 1998 $ 11,949 $ 895 $ 6,686 $ 19,530 $ 39,278 1997 $ 12,011 $ 827 $ 3,383 $ 16,221 $ 29,094 1996 $ 10,692 $ 650 $ 2,136 $ 13,478 $ 23,061 1995 $ 9,074 $ 484 $ 1,588 $ 11,146 $ 17,120 1994 $ 9,429 $ 425 $ 1,288 $ 11,142 $ 15,947 1993 $ 8,928 $ 383 $ 847 $ 10,158 $ 14,719 1992 $ 7,987 $ 172 $ 758 $ 8,917 $ 13,300 1991 $ 8,719 $ 82 $ 815 $ 9,616 $ 11,465
ENERGY PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Energy Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $17,408. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $648 for dividends and $5,067 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Energy Service Portfolio would have grown to $29,782, including the effect of the fund's maximum sales charge.
ENERGY SERVICE PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 22,876 $ 259 $ 6,647 $ 29,782 1999 $ 10,340 $ 117 $ 3,004 $ 13,461 1998 $ 22,133 $ 251 $ 4,849 $ 27,233 1997 $ 16,161 $ 183 $ 2,003 $ 18,347 1996 $ 12,710 $ 136 $ 1,026 $ 13,872 1995 $ 9,455 $ 75 $ 439 $ 9,969 1994 $ 9,210 $ 56 $ 0 $ 9,266 1993 $ 8,697 $ 14 $ 0 $ 8,711 1992 $ 7,409 $ 13 $ 0 $ 7,422 1991 $ 10,664 $ 18 $ 0 $ 10,682
ENERGY SERVICE PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Energy Service Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $14,931. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $111 for dividends and $4,186 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Environmental Services Portfolio would have grown to $9,724, including the effect of the fund's maximum sales charge.
ENVIRONMENTAL SERVICES INDEXES PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 8,532 $ 0 $ 1,192 $ 9,724 $ 52,547 1999 $ 11,385 $ 0 $ 1,580 $ 12,965 $ 47,029 1998 $ 14,675 $ 0 $ 1,996 $ 16,671 $ 39,278 1997 $ 12,927 $ 0 $ 1,759 $ 14,686 $ 29,094 1996 $ 11,073 $ 0 $ 1,487 $ 12,560 $ 23,061 1995 $ 9,156 $ 0 $ 696 $ 9,852 $ 17,120 1994 $ 10,636 $ 0 $ 808 $ 11,444 $ 15,947 1993 $ 10,128 $ 0 $ 769 $ 10,897 $ 14,719 1992 $ 11,626 $ 0 $ 446 $ 12,072 $ 13,300 1991 $ 11,581 $ 0 $ 0 $ 11,581 $ 11,465
ENVIRONMENTAL SERVICES PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Environmental Services Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $11,420. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $1,355 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Financial Services Portfolio would have grown to $55,750, including the effect of the fund's maximum sales charge.
FINANCIAL SERVICES PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 26,484 $ 3,145 $ 26,121 $ 55,750 1999 $ 32,839 $ 3,468 $ 28,922 $ 65,229 1998 $ 33,641 $ 3,439 $ 23,082 $ 60,162 1997 $ 27,015 $ 2,440 $ 13,188 $ 42,643 1996 $ 21,400 $ 1,648 $ 8,414 $ 31,462 1995 $ 15,710 $ 1,074 $ 5,842 $ 22,626 1994 $ 16,690 $ 834 $ 4,082 $ 21,606 1993 $ 17,358 $ 788 $ 1,345 $ 19,491 1992 $ 13,612 $ 459 $ 0 $ 14,071 1991 $ 9,198 $ 211 $ 0 $ 9,409
FINANCIAL SERVICES PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Financial Services Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $35,660. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $1,511 for dividends and $15,214 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Food and Agriculture Portfolio would have grown to $29,531, including the effect of the fund's maximum sales charge.
FOOD AND AGRICULTURE PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 14,069 $ 1,183 $ 14,279 $ 29,531 1999 $ 20,706 $ 1,276 $ 18,952 $ 40,934 1998 $ 21,540 $ 1,193 $ 15,228 $ 37,961 1997 $ 19,652 $ 819 $ 10,246 $ 30,717 1996 $ 18,601 $ 614 $ 7,827 $ 27,042 1995 $ 14,356 $ 370 $ 4,881 $ 19,607 1994 $ 13,897 $ 309 $ 3,596 $ 17,802 1993 $ 13,619 $ 259 $ 2,061 $ 15,939 1992 $ 13,341 $ 204 $ 1,215 $ 14,760 1991 $ 11,907 $ 134 $ 389 $ 12,430
FOOD AND AGRICULTURE PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Food and Agriculture Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $28,525. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $896 for dividends and $11,417 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Gold Portfolio would have grown to $7,918, including the effect of the fund's maximum sales charge.
GOLD PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 7,346 $ 0 $ 572 $ 7,918 $ 52,547 1999 $ 6,986 $ 0 $ 544 $ 7,530 $ 47,029 1998 $ 8,285 $ 0 $ 646 $ 8,931 $ 39,278 1997 $ 15,407 $ 0 $ 302 $ 15,709 $ 29,094 1996 $ 14,807 $ 0 $ 0 $ 14,807 $ 23,061 1995 $ 10,071 $ 0 $ 0 $ 10,071 $ 17,120 1994 $ 12,376 $ 0 $ 0 $ 12,376 $ 15,947 1993 $ 7,728 $ 0 $ 0 $ 7,728 $ 14,719 1992 $ 7,373 $ 0 $ 0 $ 7,373 $ 13,300 1991 $ 7,433 $ 0 $ 0 $ 7,433 $ 11,465
GOLD PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Gold Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $10,991. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $978 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Health Care Portfolio would have grown to $77,457, including the effect of the fund's maximum sales charge.
HEALTH CARE PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 28,586 $ 1,722 $ 47,149 $ 77,457 $ 52,547 1999 $ 30,075 $ 1,761 $ 44,738 $ 76,574 $ 47,029 1998 $ 24,882 $ 1,363 $ 33,957 $ 60,202 $ 39,278 1997 $ 22,392 $ 1,106 $ 20,615 $ 44,113 $ 29,094 1996 $ 21,959 $ 830 $ 13,846 $ 36,635 $ 23,061 1995 $ 16,639 $ 464 $ 9,124 $ 26,227 $ 17,120 1994 $ 13,837 $ 203 $ 5,944 $ 19,984 $ 15,947 1993 $ 11,490 $ 150 $ 4,935 $ 16,575 $ 14,719 1992 $ 17,376 $ 166 $ 4,424 $ 21,966 $ 13,300 1991 $ 14,294 $ 56 $ 1,609 $ 15,959 $ 11,465
HEALTH CARE PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Health Care Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $43,619. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $688 for dividends and $18,436 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Home Finance Portfolio would have grown to $56,044, including the effect of the fund's maximum sales charge.
HOME FINANCE PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 32,671 $ 2,528 $ 20,845 $ 56,044 $ 52,547 1999 $ 44,474 $ 3,082 $ 27,050 $ 74,606 $ 47,029 1998 $ 56,383 $ 3,793 $ 32,066 $ 92,242 $ 39,278 1997 $ 48,606 $ 2,800 $ 18,267 $ 69,673 $ 29,094 1996 $ 35,186 $ 1,615 $ 10,435 $ 47,236 $ 23,061 1995 $ 25,275 $ 963 $ 6,740 $ 32,978 $ 17,120 1994 $ 26,448 $ 831 $ 2,051 $ 29,330 $ 15,947 1993 $ 23,436 $ 726 $ 359 $ 24,521 $ 14,719 1992 $ 16,188 $ 493 $ 0 $ 16,681 $ 13,300 1991 $ 10,588 $ 190 $ 0 $ 10,778 $ 11,465
HOME FINANCE PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Home Finance Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $35,247. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $1,564 for dividends and $16,991 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Industrial Equipment Portfolio would have grown to $42,187, including the effect of the fund's maximum sales charge.
INDUSTRIAL EQUIPMENT PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 21,667 $ 506 $ 20,014 $ 42,187 1999 $ 20,722 $ 470 $ 14,265 $ 35,457 1998 $ 21,281 $ 482 $ 13,344 $ 35,107 1997 $ 20,952 $ 450 $ 6,515 $ 27,917 1996 $ 20,624 $ 403 $ 2,582 $ 23,609 1995 $ 16,460 $ 283 $ 507 $ 17,250 1994 $ 16,928 $ 291 $ 370 $ 17,589 1993 $ 12,353 $ 204 $ 0 $ 12,557 1992 $ 11,753 $ 195 $ 0 $ 11,948 1991 $ 9,708 $ 66 $ 0 $ 9,774
INDUSTRIAL EQUIPMENT PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Industrial Equipment Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $28,367. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $271 for dividends and $13,125 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Industrial Materials Portfolio would have grown to $19,343, including the effect of the fund's maximum sales charge.
INDUSTRIAL MATERIALS PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 14,632 $ 871 $ 3,840 $ 19,343 1999 $ 15,139 $ 874 $ 3,973 $ 19,986 1998 $ 18,625 $ 1,078 $ 4,887 $ 24,590 1997 $ 20,607 $ 1,162 $ 1,299 $ 23,068 1996 $ 19,422 $ 1,049 $ 0 $ 20,471 1995 $ 17,232 $ 823 $ 0 $ 18,055 1994 $ 16,144 $ 628 $ 0 $ 16,772 1993 $ 12,993 $ 461 $ 0 $ 13,454 1992 $ 12,337 $ 377 $ 0 $ 12,714 1991 $ 9,268 $ 241 $ 0 $ 9,509
INDUSTRIAL MATERIALS PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Industrial Materials Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $15,493. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $738 for dividends and $4,150 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Insurance Portfolio would have grown to $36,356, including the effect of the fund's maximum sales charge.
INSURANCE PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 18,894 $ 440 $ 17,022 $ 36,356 $ 52,547 1999 $ 28,806 $ 671 $ 17,207 $ 46,684 $ 47,029 1998 $ 28,779 $ 669 $ 13,055 $ 42,503 $ 39,278 1997 $ 22,298 $ 520 $ 6,945 $ 29,763 $ 29,094 1996 $ 18,299 $ 399 $ 4,503 $ 23,201 $ 23,061 1995 $ 14,567 $ 265 $ 3,083 $ 17,915 $ 17,120 1994 $ 13,268 $ 241 $ 2,808 $ 16,317 $ 15,947 1993 $ 14,752 $ 259 $ 1,512 $ 16,523 $ 14,719 1992 $ 12,831 $ 202 $ 0 $ 13,033 $ 13,300 1991 $ 10,787 $ 0 $ 0 $ 10,787 $ 11,465
INSURANCE PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Insurance Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $29,895. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $273 for dividends and $13,644 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Leisure Portfolio would have grown to $59,976, including the effect of the fund's maximum sales charge.
LEISURE PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 31,967 $ 326 $ 27,683 $ 59,976 $ 52,547 1999 $ 30,726 $ 313 $ 21,624 $ 52,663 $ 47,029 1998 $ 23,505 $ 239 $ 14,546 $ 38,290 $ 39,278 1997 $ 18,046 $ 183 $ 7,767 $ 25,996 $ 29,094 1996 $ 17,419 $ 178 $ 6,007 $ 23,604 $ 23,061 1995 $ 15,359 $ 157 $ 2,980 $ 18,496 $ 17,120 1994 $ 17,091 $ 174 $ 1,432 $ 18,697 $ 15,947 1993 $ 13,495 $ 138 $ 0 $ 13,633 $ 14,719 1992 $ 12,054 $ 123 $ 0 $ 12,177 $ 13,300 1991 $ 9,742 $ 99 $ 0 $ 9,841 $ 11,465
LEISURE PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Leisure Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $27,987. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $87 for dividends and $12,598 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Medical Delivery Portfolio would have grown to $27,367, including the effect of the fund's maximum sales charge.
MEDICAL DELIVERY PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 14,077 $ 58 $ 13,232 $ 27,367 1999 $ 17,510 $ 71 $ 16,458 $ 34,039 1998 $ 25,989 $ 107 $ 22,164 $ 48,260 1997 $ 25,961 $ 107 $ 13,498 $ 39,566 1996 $ 26,613 $ 109 $ 9,084 $ 35,806 1995 $ 21,272 $ 87 $ 5,332 $ 26,691 1994 $ 18,611 $ 0 $ 3,701 $ 22,312 1993 $ 13,270 $ 0 $ 2,639 $ 15,909 1992 $ 20,097 $ 0 $ 1,974 $ 22,071 1991 $ 15,445 $ 0 $ 459 $ 15,904
MEDICAL DELIVERY PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Medical Delivery Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $30,709. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $64 for dividends and $14,674 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the period from April 28, 1998 (commencement of operations) to February 29, 2000, a hypothetical $10,000 investment in Medical Equipment and Systems Portfolio would have grown to $14,751, including the effect of the fund's maximum sales charge.
MEDICAL EQUIPMENT AND SYSTEMS PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 14,269 $ 0 $ 482 $ 14,751 1999* $ 11,737 $ 0 $ 0 $ 11,737
MEDICAL EQUIPMENT AND SYSTEMS INDEXES PORTFOLIO Fiscal Year Ended S&P 500 DJIA Cost of Living** 2000 $ 12,910 $ 11,720 $ 10,443 1999* $ 11,554 $ 10,609 $ 10,123
* From April 28, 1998 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Medical Equipment and Systems Portfolio on April 28, 1998, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $10,409. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $407 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Money Market Portfolio would have grown to $15,679, including the effect of the fund's maximum sales charge.
MONEY MARKET PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 9,700 $ 5,979 $ 0 $ 15,679 $ 52,547 1999 $ 9,700 $ 5,221 $ 0 $ 14,921 $ 47,029 1998 $ 9,700 $ 4,500 $ 0 $ 14,200 $ 39,278 1997 $ 9,700 $ 3,790 $ 0 $ 13,490 $ 29,094 1996 $ 9,700 $ 3,146 $ 0 $ 12,846 $ 23,061 1995 $ 9,700 $ 2,469 $ 0 $ 12,169 $ 17,120 1994 $ 9,700 $ 1,969 $ 0 $ 11,669 $ 15,947 1993 $ 9,700 $ 1,671 $ 0 $ 11,371 $ 14,719 1992 $ 9,700 $ 1,310 $ 0 $ 11,010 $ 13,300 1991 $ 9,700 $ 754 $ 0 $ 10,454 $ 11,465
MONEY MARKET PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Money Market Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $15,979. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $4,668 for dividends. The money market fund did not distribute any capital gains during the period. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Multimedia Portfolio would have grown to $67,084, including the effect of the fund's maximum sales charge.
MULTIMEDIA PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 41,934 $ 39 $ 25,111 $ 67,084 $ 52,547 1999 $ 33,875 $ 32 $ 18,659 $ 52,566 $ 47,029 1998 $ 26,375 $ 25 $ 12,059 $ 38,459 $ 39,278 1997 $ 19,565 $ 18 $ 7,420 $ 27,003 $ 29,094 1996 $ 21,348 $ 20 $ 6,914 $ 28,282 $ 23,061 1995 $ 17,554 $ 0 $ 3,876 $ 21,430 $ 17,120 1994 $ 18,748 $ 0 $ 849 $ 19,597 $ 15,947 1993 $ 14,342 $ 0 $ 189 $ 14,531 $ 14,719 1992 $ 12,645 $ 0 $ 0 $ 12,645 $ 13,300 1991 $ 9,582 $ 0 $ 0 $ 9,582 $ 11,465
MULTIMEDIA PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Multimedia Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $22,764. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $16 for dividends and $9,920 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the period from April 21, 1993 (commencement of operations) to February 29, 2000, a hypothetical $10,000 investment in Natural Gas Portfolio would have grown to $16,099, including the effect of the fund's maximum sales charge.
NATURAL GAS PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 14,754 $ 381 $ 964 $ 16,099 $ 35,564 1999 $ 10,272 $ 183 $ 671 $ 11,126 $ 31,830 1998 $ 12,823 $ 103 $ 838 $ 13,764 $ 26,583 1997 $ 12,125 $ 97 $ 436 $ 12,658 $ 19,691 1996 $ 11,019 $ 78 $ 159 $ 11,256 $ 15,608 1995 $ 8,711 $ 20 $ 125 $ 8,856 $ 11,587 1994* $ 9,196 $ 0 $ 132 $ 9,328 $ 10,793
NATURAL GAS PORTFOLIO Fiscal Year Ended DJIA Cost of Living** 2000 $ 34,019 $ 11,785 1999 $ 30,794 $ 11,424 1998 $ 27,804 $ 11,243 1997 $ 21,997 $ 11,083 1996 $ 17,180 $ 10,757 1995 $ 12,271 $ 10,479 1994* $ 11,410 $ 10,188
* From April 21, 1993 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Natural Gas Portfolio on April 21, 1993, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $11,027. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $262 for dividends and $728 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the period from March 3, 1997 (commencement of operations) to February 29, 2000, a hypothetical $10,000 investment in Natural Resources Portfolio would have grown to $11,652, including the effect of the fund's maximum sales charge.
NATURAL RESOURCES PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 11,349 $ 0 $ 293 $ 11,652 1999 $ 7,653 $ 0 $ 198 $ 7,851 1998* $ 10,146 $ 0 $ 262 $ 10,408
NATURAL RESOURCES PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living** 2000 $ 17,956 $ 15,371 $ 10,633 1999 $ 16,071 $ 13,914 $ 10,307 1998* $ 13,422 $ 12,563 $ 10,144
* From March 3, 1997 (commencement of operations). ** From month-end closest to initial investment date. Explanatory Notes: With an initial investment of $10,000 in Natural Resources Portfolio on March 3, 1997, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $10,252. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $252 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Paper and Forest Products Portfolio would have grown to $27,932, including the effect of the fund's maximum sales charge.
PAPER AND FOREST PRODUCTS PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 18,798 $ 1,152 $ 7,982 $ 27,932 1999 $ 15,644 $ 959 $ 6,643 $ 23,246 1998 $ 19,213 $ 1,179 $ 7,618 $ 28,010 1997 $ 18,340 $ 1,075 $ 4,829 $ 24,244 1996 $ 17,619 $ 925 $ 3,323 $ 21,867 1995 $ 17,925 $ 864 $ 1,239 $ 20,028 1994 $ 16,627 $ 803 $ 0 $ 17,430 1993 $ 13,634 $ 649 $ 0 $ 14,283 1992 $ 12,744 $ 527 $ 0 $ 13,271 1991 $ 10,014 $ 169 $ 0 $ 10,183
PAPER AND FOREST PRODUCTS INDEXES PORTFOLIO Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Paper and Forest Products Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $18,190. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $670 for dividends and $6,105 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Retailing Portfolio would have grown to $54,413, including the effect of the fund's maximum sales charge.
RETAILING PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 37,420 $ 0 $ 16,993 $ 54,413 $ 52,547 1999 $ 50,096 $ 0 $ 11,845 $ 61,941 $ 47,029 1998 $ 37,138 $ 0 $ 8,187 $ 45,325 $ 39,278 1997 $ 24,677 $ 0 $ 5,023 $ 29,700 $ 29,094 1996 $ 20,684 $ 0 $ 4,151 $ 24,835 $ 23,061 1995 $ 17,745 $ 0 $ 3,561 $ 21,306 $ 17,120 1994 $ 18,487 $ 0 $ 3,710 $ 22,197 $ 15,947 1993 $ 17,715 $ 0 $ 1,485 $ 19,200 $ 14,719 1992 $ 17,470 $ 0 $ 489 $ 17,959 $ 13,300 1991 $ 11,548 $ 0 $ 27 $ 11,575 $ 11,465
RETAILING PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Retailing Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $23,901. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $11,682 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Software and Computer Services Portfolio would have grown to $162,930, including the effect of the fund's maximum sales charge.
SOFTWARE AND COMPUTER INDEXES SERVICES PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 67,823 $ 0 $ 95,107 $ 162,930 $ 52,547 1999 $ 36,845 $ 0 $ 44,282 $ 81,127 $ 47,029 1998 $ 28,564 $ 0 $ 32,633 $ 61,197 $ 39,278 1997 $ 24,899 $ 0 $ 20,264 $ 45,163 $ 29,094 1996 $ 23,363 $ 0 $ 15,522 $ 38,885 $ 23,061 1995 $ 18,761 $ 0 $ 8,979 $ 27,740 $ 17,120 1994 $ 18,645 $ 0 $ 8,558 $ 27,203 $ 15,947 1993 $ 17,825 $ 0 $ 2,600 $ 20,425 $ 14,719 1992 $ 15,044 $ 0 $ 2,193 $ 17,237 $ 13,300 1991 $ 12,165 $ 0 $ 0 $ 12,165 $ 11,465
SOFTWARE AND COMPUTER SERVICES PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Software and Computer Services Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $44,246. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $0 for dividends and $20,316 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Technology Portfolio would have grown to $244,139, including the effect of the fund's maximum sales charge.
TECHNOLOGY PORTFOLIO INDEXES Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value S&P 500 Investment Distributions Gain Distributions 2000 $ 94,596 $ 982 $ 148,561 $ 244,139 $ 52,547 1999 $ 39,930 $ 415 $ 45,585 $ 85,930 $ 47,029 1998 $ 25,653 $ 266 $ 29,286 $ 55,205 $ 39,278 1997 $ 27,859 $ 289 $ 16,043 $ 44,191 $ 29,094 1996 $ 26,396 $ 274 $ 12,561 $ 39,231 $ 23,061 1995 $ 20,303 $ 211 $ 5,517 $ 26,031 $ 17,120 1994 $ 20,197 $ 210 $ 4,477 $ 24,884 $ 15,947 1993 $ 16,715 $ 97 $ 1,537 $ 18,349 $ 14,719 1992 $ 17,266 $ 99 $ 0 $ 17,365 $ 13,300 1991 $ 12,722 $ 0 $ 0 $ 12,722 $ 11,465
TECHNOLOGY PORTFOLIO Fiscal Year Ended DJIA Cost of Living 2000 $ 49,417 $ 13,258 1999 $ 44,732 $ 12,852 1998 $ 40,389 $ 12,648 1997 $ 31,953 $ 12,469 1996 $ 24,957 $ 12,102 1995 $ 17,825 $ 11,789 1994 $ 16,574 $ 11,461 1993 $ 14,177 $ 11,180 1992 $ 13,342 $ 10,828 1991 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Technology Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $56,891. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $140 for dividends and $26,638 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Telecommunications Portfolio would have grown to $85,657, including the effect of the fund's maximum sales charge.
TELECOMMUNICATIONS PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 40,633 $ 3,255 $ 41,769 $ 85,657 1999 $ 24,915 $ 1,995 $ 19,418 $ 46,328 1998 $ 21,499 $ 1,722 $ 14,688 $ 37,909 1997 $ 16,838 $ 1,349 $ 7,685 $ 25,872 1996 $ 18,075 $ 1,279 $ 4,635 $ 23,989 1995 $ 15,444 $ 921 $ 2,705 $ 19,070 1994 $ 14,945 $ 631 $ 2,085 $ 17,661 1993 $ 13,773 $ 499 $ 217 $ 14,489 1992 $ 11,758 $ 355 $ 0 $ 12,113 1991 $ 9,583 $ 188 $ 0 $ 9,771
TELECOMMUNICATIONS PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Telecommunications Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $32,419. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $918 for dividends and $13,789 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Transportation Portfolio would have grown to $35,427, including the effect of the fund's maximum sales charge.
TRANSPORTATION PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 16,476 $ 55 $ 18,896 $ 35,427 1999 $ 19,683 $ 67 $ 14,932 $ 34,682 1998 $ 22,277 $ 75 $ 12,941 $ 35,293 1997 $ 17,474 $ 60 $ 7,471 $ 25,005 1996 $ 17,230 $ 59 $ 6,600 $ 23,889 1995 $ 16,138 $ 54 $ 4,957 $ 21,149 1994 $ 17,034 $ 58 $ 2,879 $ 19,971 1993 $ 14,684 $ 49 $ 934 $ 15,667 1992 $ 12,160 $ 42 $ 505 $ 12,707 1991 $ 8,867 $ 0 $ 368 $ 9,235
TRANSPORTATION PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Transportation Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $30,230. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $31 for dividends and $13,638 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. During the 10-year period ended February 29, 2000, a hypothetical $10,000 investment in Utilities Growth Portfolio would have grown to $52,482, including the effect of the fund's maximum sales charge.
UTILITIES GROWTH PORTFOLIO Fiscal Year Ended Value of Initial $10,000 Value of Reinvested Dividend Value of Reinvested Capital Total Value Investment Distributions Gain Distributions 2000 $ 20,074 $ 5,905 $ 26,503 $ 52,482 1999 $ 17,959 $ 5,003 $ 17,483 $ 40,445 1998 $ 15,603 $ 4,207 $ 10,791 $ 30,601 1997 $ 13,407 $ 3,327 $ 5,734 $ 22,468 1996 $ 12,549 $ 2,779 $ 3,691 $ 19,019 1995 $ 10,172 $ 1,952 $ 2,992 $ 15,116 1994 $ 10,677 $ 1,563 $ 2,844 $ 15,084 1993 $ 12,100 $ 1,333 $ 1,279 $ 14,712 1992 $ 10,665 $ 736 $ 568 $ 11,969 1991 $ 10,304 $ 189 $ 182 $ 10,675
UTILITIES GROWTH PORTFOLIO INDEXES Fiscal Year Ended S&P 500 DJIA Cost of Living 2000 $ 52,547 $ 49,417 $ 13,258 1999 $ 47,029 $ 44,732 $ 12,852 1998 $ 39,278 $ 40,389 $ 12,648 1997 $ 29,094 $ 31,953 $ 12,469 1996 $ 23,061 $ 24,957 $ 12,102 1995 $ 17,120 $ 17,825 $ 11,789 1994 $ 15,947 $ 16,574 $ 11,461 1993 $ 14,719 $ 14,177 $ 11,180 1992 $ 13,300 $ 13,342 $ 10,828 1991 $ 11,465 $ 11,399 $ 10,531
Explanatory Notes: With an initial investment of $10,000 in Utilities Growth Portfolio on March 1, 1990, assuming the maximum sales charge had been in effect, the net amount invested in fund shares was $9,700. The cost of the initial investment ($10,000) together with the aggregate cost of reinvested dividends and capital gain distributions for the period covered (their cash value at the time they were reinvested) amounted to $32,739. If distributions had not been reinvested, the amount of distributions earned from the fund over time would have been smaller, and cash payments for the period would have amounted to $2,505 for dividends and $10,834 for capital gain distributions. The figures in the table do not include the effect of a stock fund's trading fee or exchange fee. AFTER-TAX RESULTS (STOCK FUNDS). The following table shows each fund's pre-liquidation and post-liquidation after-tax returns, as provided by Morningstar, Inc., for the fiscal periods ended February 29, 2000. The pre-liquidation calculation assumes (i) that taxes are paid on distributions at the time of the distribution, (ii) that shares were held for the entire measurement period, and (iii) that no taxes have been paid on accumulated capital appreciation. The post-liquidation calculation assumes (i) that taxes are paid on distributions at the time of the distribution and (ii) that shares have been sold at the end of the measurement period. The post-liquidation returns also include the effect of each fund's trading fee and maximum sales charge. The pre-liquidation and post-liquidation after-tax calculations assume the highest individual federal income and capital gains tax rates in effect at the time the distribution is paid. The applicable tax rate is applied to distributions as if they were paid in cash and the remainder of the distribution is assumed to be reinvested in shares of the fund. State and local taxes are not considered. The post-liquidation after-tax calculation assumes the long-term capital gains tax rate on accumulated capital appreciation for all periods. If there would have been a capital loss on liquidation, the loss is recorded as a tax benefit, increasing the post-liquidation return.
Average Annual Returns Fund One Year Five Years Ten Years Air Transportation - 4.06% 17.15% 11.93% Pre-Liquidation Returns Air Transportation - 2.56% 14.54% 10.45% Post-Liquidation Returns Automotive - Pre-Liquidation -17.40% 2.94% 8.85% Returns Automotive - Post-Liquidation -15.90% 2.75% 8.05% Returns Banking - Pre-Liquidation -25.22% 14.88% 16.24% Returns Banking - Post-Liquidation -19.03% 13.59% 15.16% Returns Biotechnology - 169.04% 41.36% 28.05% Pre-Liquidation Returns Biotechnology - 129.71% 36.10% 25.45% Post-Liquidation Returns Brokerage and Investment 17.41% 28.01% 21.19% Management - Pre-Liquidation Returns Brokerage and Investment 12.30% 24.00% 18.92% Management - Post-Liquidation Returns Business Services and 9.21% n/a n/a Outsourcing - Pre-Liquidation Returns Business Services and 5.97% n/a n/a Outsourcing - Post-Liquidation Returns Chemicals - Pre-Liquidation 10.30% 5.95% 9.61% Returns Chemicals - Post-Liquidation 5.94% 5.55% 8.88% Returns Computers - Pre-Liquidation 110.25% 45.70% 33.42% Returns Computers - Post-Liquidation 86.28% 40.57% 30.77% Returns Construction and Housing - -21.62% 6.99% 9.34% Pre-Liquidation Returns Construction and Housing - -17.24% 6.49% 8.57% Post-Liquidation Returns Consumer Industries - -6.13% 18.08% n/a Pre-Liquidation Returns Consumer Industries - -6.21% 15.20% n/a Post-Liquidation Returns Cyclical Industries - 1.32% n/a n/a Pre-Liquidation Returns Cyclical Industries - -1.38% n/a n/a Post-Liquidation Returns Defense and Aerospace - 2.74% 15.52% 13.72% Pre-Liquidation Returns Defense and Aerospace - -0.03% 13.06% 12.01% Post-Liquidation Returns Developing Communications - 160.93% 41.48% n/a Pre-Liquidation Returns Developing Communications - 123.77% 36.21% n/a Post-Liquidation Returns Electronics - Pre-Liquidation 172.41% 54.88% 36.72% Returns Electronics - 133.39% 48.75% 33.79% Post-Liquidation Returns Energy - Pre-Liquidation 43.87% 12.51% 6.84% Returns Energy - Post-Liquidation 31.92% 10.70% 6.05% Returns Energy Service - 121.47% 23.07% 11.07% Pre-Liquidation Returns Energy Service - 91.86% 19.67% 9.54% Post-Liquidation Returns Environmental Services - -25.01% -0.70% -0.40% Pre-Liquidation Returns Environmental Services - -21.80% -0.87% -0.36% Post-Liquidation Returns Financial Services - -15.64% 17.56% 16.67% Pre-Liquidation Returns Financial Services - -13.67% 15.59% 15.32% Post-Liquidation Returns Food and Agriculture - -28.94% 6.12% 9.71% Pre-Liquidation Returns Food and Agriculture - -24.09% 6.05% 9.19% Post-Liquidation Returns Gold - Pre-Liquidation Returns 5.16% -5.09% -2.21% Gold - Post-Liquidation Returns 1.60% -4.10% -1.79% Fund One Year Five Years Ten Years Health Care - Pre-Liquidation -0.37% 20.61% 19.57% Returns Health Care - -1.84% 18.21% 18.01% Post-Liquidation Returns Home Finance - -25.29% 9.45% 17.24% Pre-Liquidation Returns Home Finance - -21.71% 8.36% 15.78% Post-Liquidation Returns Industrial Equipment - 15.12% 15.01% 13.41% Pre-Liquidation Returns Industrial Equipment - 11.26% 13.50% 12.17% Post-Liquidation Returns Industrial Materials - -3.27% -0.22% 6.12% Pre-Liquidation Returns Industrial Materials - -4.92% 0.02% 5.29% Post-Liquidation Returns Insurance - Pre-Liquidation -23.89% 12.74% 12.14% Returns Insurance - Post-Liquidation -18.25% 11.78% 11.26% Returns Leisure - Pre-Liquidation 11.58% 23.21% 17.68% Returns Leisure -Post-Liquidation 8.11% 20.18% 15.91% Returns Medical Delivery - -19.60% -1.74% 8.93% Pre-Liquidation Returns Medical Delivery - -17.61% -0.11% 8.67% Post-Liquidation Returns Medical Equipment and Systems 24.35% n/a n/a - - Pre-Liquidation Returns Medical Equipment and Systems 16.93% n/a n/a - - Post-Liquidation Returns Multimedia - Pre-Liquidation 26.63% 23.87% 19.67% Returns Multimedia - Post-Liquidation 18.81% 20.34% 17.57% Returns Natural Gas - Pre-Liquidation 44.26% 12.18% n/a Returns Natural Gas - 32.04% 9.74% n/a Post-Liquidation Returns Natural Resources - 48.29% n/a n/a Pre-Liquidation Returns Natural Resources - 35.07% n/a n/a Post-Liquidation Returns Paper and Forest Products - 20.16% 4.89% 9.70% Pre-Liquidation Returns Paper and Forest Products - 13.25% 4.17% 8.50% Post-Liquidation Returns Retailing - Pre-Liquidation -15.37% 19.67% 17.62% Returns Retailing - Post-Liquidation -12.14% 16.85% 15.78% Returns Software and Computer 97.28% 38.22% 28.81% Services - Pre-Liquidation Returns Software and Computer 74.82% 33.48% 26.32% Services - Post-Liquidation Returns Technology - Pre-Liquidation 166.41% 48.96% 33.63% Returns Technology - Post-Liquidation 129.81% 43.42% 30.91% Returns Telecommunications - 78.32% 30.99% 21.58% Pre-Liquidation Returns Telecommunications - 60.71% 27.13% 19.53% Post-Liquidation Returns Transportation - -4.74% 7.14% 10.94% Pre-Liquidation Returns Transportation - -3.53% 6.68% 10.12% Post-Liquidation Returns Utilities Growth - 24.27% 24.28% 15.13% Pre-Liquidation Returns Utilities Growth - 18.63% 21.51% 13.82% Post-Liquidation Returns
PERFORMANCE COMPARISONS. 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 Inc. (Lipper), an independent service located in Summit, New Jersey that monitors the performance of mutual funds. Generally, Lipper rankings are based on return, assume reinvestment of distributions, do not take sales charges or trading fees into consideration, and are prepared without regard to tax consequences. Lipper may also rank based on yield. In addition to the mutual fund rankings, a fund's performance may be compared to stock, bond, and money market mutual fund performance indexes prepared by Lipper or other organizations. When comparing these indexes, it is important to remember the risk and return characteristics of each type of investment. For example, while stock mutual funds may offer higher potential returns, they also carry the highest degree of share price volatility. Likewise, money market funds may offer greater stability of principal, but generally do not offer the higher potential returns available from stock mutual funds. 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, a 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. A fund's performance may also be compared to that of the benchmark index representing the universe of securities in which the fund may invest. The return of the index reflects reinvestment of all dividends and capital gains paid by securities included in the index. Unlike a fund's returns, however, the index's returns do not reflect brokerage commissions, transaction fees, or other costs of investing directly in the securities included in the index. Each stock fund may compare its performance to that of the Standard & Poor's 500 Index, a market capitalization-weighted index of common stocks. Each of Consumer Industries, Food and Agriculture, Leisure, Multimedia, and Retailing may also compare its performance to that of the Goldman Sachs Consumer Industries Index, a market capitalization-weighted index of 301 stocks designed to measure the performance of companies in the consumer industries sector. Issues in the index include providers of consumer services and products, including producers of beverages-alcoholic and non-alcoholic, food, personal care, household products and tobacco companies. Each of Air Transportation, Automotive, Chemicals, Construction and Housing, Cyclical Industries, Defense and Aerospace, Environmental Services, Industrial Equipment, Industrial Materials, Paper and Forest Products, and Transportation may also compare its performance to that of the Goldman Sachs Cyclical Industries Index, a market capitalization-weighted index of 246 stocks designed to measure the performance of companies in the cyclical industries sector. Issues in the index include providers of consumer and commercial goods and services where performance is influenced by the cyclicality of economy, such as: manufacturers of automobiles and companies involved with construction of residential and commercial properties, producers of chemicals, electrical equipment and components, and providers of environmental services. Each of Brokerage and Investment Management, Financial Services, Home Finance, Insurance, and Banking may also compare its performance to that of the Goldman Sachs Financial Services Index, a market capitalization-weighted index of 252 stocks designed to measure the performance of companies in the financial services sector. Issues in the index include financial institutions providing banking services, brokerage firms and asset managers, insurance companies, and real estate holding and development companies. Each of Biotechnology, Health Care, Medical Delivery, and Medical Equipment and Systems may also compare its performance to that of the Goldman Sachs Health Care Index, a market capitalization-weighted index of 97 stocks designed to measure the performance of companies in the health care sector. Issues in the index include providers of health care related services including long-term care and hospital facilities, health care management organizations and continuing care services. Each of Energy, Energy Services, Gold, and Natural Resources may also compare its performance to that of the Goldman Sachs Natural Resources Index, a market capitalization-weighted index of 105 stocks designed to measure the performance of companies in the natural resources sector. Issues in the index include extractive industries including gold & precious metals mining along with other mineral mining, energy companies providing oil & gas services, and owners and operators of timber tracts and forestry services. Each of Technology, Business Services and Outsourcing, Computers, Developing Communications, Electronics, and Software and Computer Services may also compare its performance to that of the Goldman Sachs Technology Index, a market capitalization-weighted index of 185 stocks designed to measure the performance of companies in the technology sector. Issues in the index include producers of sophisticated devices, services and software related to the fields of computers, electronics, networking and Internet services. Each of Utilities Growth, Natural Gas, and Telecommunications may also compare its performance to that of the Goldman Sachs Utilities Index, a market capitalization-weighted index of 150 stocks designed to measure the performance of companies in the utilities sector. Issues in the index include generators and distributors of electricity, distributors of natural gas and water, and providers of telecommunications services. A fund may be compared in advertising to Certificates of Deposit (CDs) or other investments issued by banks or other depository institutions. Mutual funds differ from bank investments in several respects. For example, a fund may offer greater liquidity or higher potential returns than CDs, a fund does not guarantee an investor's principal or return, and fund shares are not FDIC insured. Fidelity may provide information designed to help individuals understand their investment goals and explore various financial strategies. Such information may include information about current economic, market, and political conditions; materials that describe general principles of investing, such as asset allocation, diversification, risk tolerance, and goal setting; questionnaires designed to help create a personal financial profile; worksheets used to project savings needs based on assumed rates of inflation and hypothetical rates of return; and action plans offering investment alternatives. Materials may also include discussions of Fidelity's 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 indexes. 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 returns in the same method as the funds. The funds may also compare performance to that of other compilations or indexes 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 Financial Data, Inc. of Ashland, Massachusetts. These averages assume reinvestment of distributions. IBC's MONEY FUND REPORT AVERAGES(trademark)/ALL TAXABLE, which is reported in IBC's MONEY FUND REPORT(trademark), covers 969 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; model portfolios or allocations; saving for college or other goals; and charitable giving. In addition, Fidelity may quote or reprint financial or business publications and periodicals as they relate to current economic and political conditions, fund management, portfolio composition, investment philosophy, investment techniques, the desirability of owning a particular mutual fund, and Fidelity services and products. Fidelity may also reprint, and use as advertising and sales literature, articles from Fidelity Focus(registered trademark), a quarterly magazine provided free of charge to Fidelity fund shareholders. A fund may present its fund number, Quotron(trademark) number, and CUSIP number, and discuss or quote its current portfolio manager. VOLATILITY. A stock fund may quote various measures of volatility and benchmark correlation in advertising. In addition, the fund may compare these measures to those of other funds. Measures of volatility seek to compare a fund's historical share price fluctuations or 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 price movements over specific periods of time for a stock fund. Each point on the momentum indicator represents a fund's percentage change in price movements over that period. A stock fund 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. As of February 29, 2000, FMR advised over $35 billion in municipal fund assets, $141 billion in taxable fixed-income fund assets, $148 billion in money market fund assets, $638 billion in equity fund assets, $23 billion in international fund assets, and $42 billion in Spartan fund assets. The funds may reference the growth and variety of money market mutual funds and the adviser's innovation and participation in the industry. The equity funds under management 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. FMR, its subsidiaries, and affiliates maintain a worldwide information and communications network for the purpose of researching and managing investments abroad. In addition to performance rankings, the money market fund may compare its total expense ratio to the average total expense ratio of similar funds tracked by Lipper. The fund's total expense ratio is a significant factor in comparing bond and money market investments because of its effect on yield. ADDITIONAL PURCHASE, EXCHANGE AND REDEMPTION INFORMATION Pursuant to Rule 22d-1 under the 1940 Act, FDC exercises its right to waive each fund's front-end 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, FDC has chosen to waive each fund's front-end sales charge in certain instances due to sales efficiencies and competitive considerations. The sales charge will not apply: 1. to shares purchased in connection with 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 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 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 waiver (1) above) of such employer, maintained at least one employee benefit plan that qualified for waiver (1) above 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 investment accounts or pools advised by Fidelity Management Trust Company; and (ii) either (a) the distribution is transferred from the plan to a Fidelity IRA account within 60 days from the date of the distribution or (b) the distribution is transferred directly from the plan into another Fidelity account; 4. to shares purchased by a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code) investing $100,000 or more; 5. to shares purchased for a charitable remainder trust or life income pool established for the benefit of a charitable organization (as defined for purposes of Section 501(c)(3) of the Internal Revenue Code); 6. to shares purchased by an investor participating in the Fidelity Trust Portfolios program (these investors must make initial investments of $100,000 or more in the Trust Portfolios funds 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 by a mutual fund or a qualified state tuition program for which FMR or an affiliate serves as investment manager; 8. to shares purchased through Portfolio Advisory Services SM or Fidelity Charitable Advisory Services; 9. to shares purchased by a current or former Trustee or officer of a Fidelity fund or a current or retired officer, director, or regular employee of FMR Corp. or Fidelity International Limited (FIL) or their 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 10. to shares purchased by 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 fund's shares under special arrangements in connection with FDC's sales activities. A fund's sales charge may be reduced to reflect sales charges previously paid, or that would have been paid absent a reduction for some purchases made directly with Fidelity 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 Traditional IRA, The Fidelity Roth IRA, The Fidelity Rollover IRA, The Fidelity SEP-IRA and SARSEP, The Fidelity SIMPLE IRA, The Fidelity Retirement Plan, Fidelity Defined Benefit Plan, The Fidelity Group 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). On October 12, 1990, the funds changed their sales charge policy from a 2% sales charge upon purchase and a 1% deferred sales charge upon redemption, to a 3% sales charge upon purchase. If you purchased shares prior to that date, when you redeem those shares a trading fee will be deducted and a deferred sales charge of 1% of this net redemption amount will be deducted. The deferred sales charge does not apply to exchanges between Select funds. A fund may make redemption payments in whole or in part in readily marketable securities or other property, valued for this purpose as they are valued in computing each fund's NAV, if FMR determines it is in the best interests of the fund. Shareholders that receive 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. DISTRIBUTIONS AND TAXES DIVIDENDS. A portion of each fund's income may qualify for the dividends-received deduction available to corporate shareholders to the extent that the fund's income is derived from qualifying dividends. Because each fund may earn other types of income, such as interest, short-term capital gains, and non-qualifying dividends, the percentage of dividends from the fund that qualifies for the deduction generally will be less than 100%. A portion of each fund's dividends derived from certain U.S. Government securities and securities of certain other investment companies may be exempt from state and local taxation. CAPITAL GAIN DISTRIBUTIONS. Each fund's long-term capital gain distributions are federally taxable to shareholders generally as capital gains. The money market fund may distribute any net realized capital gains once a year or more often, as necessary. As of February 29, 2000, Automotive had an aggregate capital loss carryforward of approximately $7,479,000. This loss carryforward, of which $1,009,000 and $6,470,000 will expire on February 28, 2007 and February 29, 2008, respectively, is available to offset future capital gains. As of February 29, 2000, Energy Service had an aggregate capital loss carryforward of approximately $162,650,000. This loss carryforward, of which $85,150,000 and $77,500,000 will expire on February 28, 2007 and February 29, 2008, respectively, is available to offset future capital gains. As of February 29, 2000, Environmental Services had an aggregate capital loss carryforward of approximately $635,000. This loss carryforward, all of which will expire on February 29, 2008, is available to offset future capital gains. As of February 29, 2000, Gold had an aggregate capital loss carryforward of approximately $173,233,000. This loss carryforward, of which $1,376,000, $91,543,000, $37,334,000, and $42,980,000 will expire on February 28, 2001, 2006, 2007, and February 29, 2008, respectively, is available to offset future capital gains. Approximately $92,589,000, of which $1,376,000, $55,694,000, $20,723,000, and $14,796,000 will expire on February 28, 2001, 2006, 2007 and February 29, 2008, respectively, was aquired in the merger with Precious Metals and Minerals and is available to offset future capital gains of the fund to the extent provided by regulations. As of February 29, 2000, Industrial Materials had an aggregate capital loss carryforward of approximately $2,206,000. This loss carryforward, of which $840,000 and $1,366,000 will expire on February 28, 2007 and February 29, 2008, respectively, is available to offset future capital gains. As of February 29, 2000, Medical Delivery had an aggregate capital loss carryforward of approximately $38,668,000. This loss carryforward, of which $10,988,000 and $27,680,000 will expire on February 28, 2007 and February 29, 2008, respectively, is available to offset future capital gains. As of February 29, 2000, Paper and Forest Products had an aggregate capital loss carryforward of approximately $1,444,000. This loss carryforward, all of which will expire on February 28, 2007, is available to offset future capital gains. As of February 29, 2000, Money Market had an aggregate capital loss carryforward of approximately $6,000. This loss carryforward, all of which will expire on February 29, 2008, is available to offset future capital gains. RETURNS OF CAPITAL. If a fund's distributions exceed its taxable income and capital gains realized during a taxable year, all or a portion of the distributions made in the same taxable year may be recharacterized as a return of capital to shareholders. A return of capital distribution will generally not be taxable, but will reduce each shareholder's cost basis in the fund and result in a higher reported capital gain or lower reported capital loss when those shares on which the distribution was received are sold. FOREIGN TAX CREDIT OR DEDUCTION. Foreign governments may withhold taxes on dividends and interest earned by a fund with respect to foreign securities. Foreign governments may also impose taxes on other payments or gains with respect to foreign securities. If, at the close of its fiscal year, more than 50% of a fund's total assets is invested in securities of foreign issuers, the fund may elect to pass through eligible foreign taxes paid and thereby allow shareholders to take a deduction or, if they meet certain holding period requirements with respect to fund shares, a credit on their individual tax returns. TAX STATUS OF THE FUNDS. Each fund intends to qualify each year as a "regulated investment company" under Subchapter M of the Internal Revenue Code 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 at the fund level, each fund intends to distribute substantially all of its net investment income and net realized capital gains within each calendar year as well as on a fiscal year basis, and intends to comply with other tax rules applicable to regulated investment companies. OTHER TAX INFORMATION. The information above is only a summary of some of the tax consequences generally affecting each fund and its shareholders, and no attempt has been made to discuss individual tax consequences. It is up to you or your tax preparer to determine whether the sale of shares of a fund resulted in a capital gain or loss or other tax consequence to you. In addition to federal income taxes, shareholders may be subject to state and local taxes on fund distributions, and shares may be subject to state and local personal property taxes. Investors should consult their tax advisers to determine whether a fund is suitable to their particular tax situation. TRUSTEES AND OFFICERS The Trustees, Members of the Advisory Board, and executive officers of the trust and funds, as applicable, are listed below. The Board of Trustees governs each fund and is responsible for protecting the interests of shareholders. The Trustees are experienced executives who meet periodically throughout the year to oversee each fund's activities, review contractual arrangements with companies that provide services to each fund, and review each fund's performance. 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 and Members of the Advisory Board also serve in similar capacities for other funds advised by FMR or its affiliates. The business address of each Trustee, Member of the Advisory Board, and officer who is an "interested person" (as defined in the 1940 Act) is 82 Devonshire Street, Boston, Massachusetts 02109, which is also the address of FMR. The business address of all the other Trustees is Fidelity Investments, P.O. Box 9235, Boston, Massachusetts 02205-9235. Those Trustees who are "interested persons" by virtue of their affiliation with either the trust or FMR are indicated by an asterisk (*). *EDWARD C. JOHNSON 3d (69), Trustee, is President of the funds. Mr. Johnson also serves as President of other Fidelity funds. He is Chief Executive Officer, Chairman, 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 Fidelity Management & Research (U.K.) Inc. and of Fidelity Management & Research (Far East) Inc.; Chairman (1998) and a Director (1997) of Fidelity Investments Money Management, Inc.; Chairman and Representative Director of Fidelity Investments Japan Limited (1997); and a Director of FDC and of FMR Co., Inc. (2000). Abigail Johnson, Member of the Advisory Board of Fidelity Select Portfolios, is Mr. Johnson's daughter. ABIGAIL P. JOHNSON (38), Member of the Advisory Board of Fidelity Select Portfolios (1999), is Vice President of certain Equity Funds (1997), and is a Director of FMR Corp. (1994). Before assuming her current responsibilities, Ms. Johnson managed a number of Fidelity funds. Edward C. Johnson 3d, Trustee and President of the Funds, is Ms. Johnson's father. J. MICHAEL COOK (57), Member of the Advisory Board (2000). Prior to Mr. Cook's retirement in May 1999, he served as Chairman and Chief Executive Officer of Deloitte & Touche LLP, Chairman of the Deloitte & Touche Foundation, and a member of the Board of Deloitte Touche Tohmatsu. He currently serves as an Executive in Residence of the Columbia Business School and as a Director of Dow Chemical Company (2000), Columbia/HCA Healthcare Corporation (1999), and Children First (1999). He is a member of the Executive Committee of the Securities Regulation Institute, a member of the Advisory Board of Boardroom Consultants, a Director of the National Forum for Health Care Quality, Measurement and Reporting, past chairman and a member of the Board of Catalyst (a leading organization for the advancement of women in business), and is a Director of the STAR Foundation (Society to Advance the Retarded and Handicapped). He also serves as a member of the Board and Executive Committee and as Co-Chairman of the Audit and Finance Committee of the Center for Strategic & International Studies, a member of the Board of Overseers of the Columbia Business School, and a Member of the Advisory Board of the Graduate School of Business of the University of Florida. RALPH F. COX (67), Trustee, is President of RABAR Enterprises (management consulting-engineering industry, 1994). Prior to February 1994, he was President of Greenhill Petroleum Corporation (petroleum exploration and production). Until March 1990, Mr. Cox was President and Chief Operating Officer of Union Pacific Resources Company (exploration and production). He is a Director of Waste Management Inc. (non-hazardous waste, 1993), CH2M Hill Companies (engineering), and Bonneville Pacific (independent power and petroleum production). In addition, he is a member of advisory boards of Texas A&M University and the University of Texas at Austin. PHYLLIS BURKE DAVIS (68), Trustee. Mrs. Davis is retired from Avon Products, Inc. where she held various positions including Senior Vice President of Corporate Affairs and Group Vice President of U.S. sales, distribution, and manufacturing. She is currently a Director of BellSouth Corporation (telecommunications), Eaton Corporation (manufacturing), and the TJX Companies, Inc. (retail stores), and previously served as a Director of Hallmark Cards, Inc., Nabisco Brands, Inc., and Standard Brands, Inc. In addition, she is a member of the Board of Directors of the Southampton Hospital in Southampton, N.Y. (1998). ROBERT M. GATES (56), Trustee (1997), is a consultant, author, and lecturer (1993). Mr. Gates was Director of the Central Intelligence Agency (CIA) from 1991-1993. From 1989 to 1991, Mr. Gates served as Assistant to the President of the United States and Deputy National Security Advisor. Mr. Gates is a Director of Charles Stark Draper Laboratory (non-profit), NACCO Industries, Inc. (mining and manufacturing), and TRW Inc. (automotive, space, defense, and information technology). Mr. Gates previously served as a Director of LucasVarity PLC (automotive components and diesel engines). He is currently serving as Dean of the George Bush School of Government and Public Service at Texas A & M University (1999-2000). Mr. Gates also is a Trustee of the Forum for International Policy and of the Endowment Association of the College of William and Mary. In addition, he is a member of the National Executive Board of the Boy Scouts of America. DONALD J. KIRK (67), Trustee, is Executive-in-Residence (1995) at Columbia University Graduate School of Business. From 1987 to January 1995, Mr. Kirk was a Professor at Columbia University Graduate School of Business. Prior to 1987, he was Chairman of the Financial Accounting Standards Board. Mr. Kirk previously served as a Director of General Re Corporation (reinsurance, 1987-1998) and as a Director of Valuation Research Corp. (appraisals and valuations, 1993-1995). He serves as Chairman of the Board of Directors of National Arts Stabilization Inc., Chairman of the Board of Trustees of the Greenwich Hospital Association, Director of the Yale-New Haven Health Services Corp. (1998), Vice Chairman of the Public Oversight Board of the American Institute of Certified Public Accountants' SEC Practice Section (1995), and as a Public Governor of the National Association of Securities Dealers, Inc. (1996). NED C. LAUTENBACH (56), Trustee (2000), has been a partner of Clayton, Dubilier & Rice, Inc. (private equity investment firm) since September 1998. Mr. Lautenbach was Senior Vice President of IBM Corporation from 1992 until his retirement in July 1998. From 1993 to 1995 he was Chairman of IBM World Trade Corporation. He also was a member of IBM's Corporate Executive Committee from 1994 to July 1998. He is a Director of PPG Industries Inc. (glass, coating and chemical manufacturer), Dynatech Corporation (global communications equipment), Eaton Corporation (global manufacturer of highly engineered products) and ChoicePoint Inc. (data identification, retrieval, storage, and analysis). *PETER S. LYNCH (57), Trustee, is Vice Chairman and a Director of FMR; and a Director of FMR Co., Inc. (2000). Prior to May 31, 1990, he was a Director of FMR 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). 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. WILLIAM O. McCOY (66), Trustee (1997), is the Interim Chancellor for the University of North Carolina at Chapel Hill. Previously he had served from 1995 through 1998 as Vice President of Finance for the University of North Carolina (16-school system). Prior to his retirement in December 1994, Mr. McCoy was Vice Chairman of the Board of BellSouth Corporation (telecommunications, 1984) and President of BellSouth Enterprises (1986). He is currently a Director of Liberty Corporation (holding company, 1984), Duke-Weeks Realty Corporation (real estate, 1994), Carolina Power and Light Company (electric utility, 1996), the Kenan Transport Company (trucking, 1996), and Dynatech Corporation (electronics, 1999). Previously, he was a Director of First American Corporation (bank holding company, 1979-1996). In addition, Mr. McCoy served as a member of the Board of Visitors for the University of North Carolina at Chapel Hill (1994-1998) and currently serves on the Board of Visitors of the Kenan-Flager Business School (University of North Carolina at Chapel Hill, 1988). GERALD C. McDONOUGH (71), Trustee and Chairman of the non-interested Trustees, is Chairman of G.M. Management Group (strategic advisory services). Mr. McDonough is a Director and Chairman of the Board of York International Corp. (air conditioning and refrigeration), Commercial Intertech Corp. (hydraulic systems, building systems, and metal products, 1992), CUNO, Inc. (liquid and gas filtration products, 1996), and Associated Estates Realty Corporation (a real estate investment trust, 1993). Mr. McDonough served as a Director of ACME-Cleveland Corp. (metal working, telecommunications, and electronic products) from 1987-1996 and Brush-Wellman Inc. (metal refining) from 1983-1997. MARVIN L. MANN (67), Trustee (1993), is Chairman Emeritus of Lexmark International, Inc. (office machines, 1991) where he still remains a member of the Board. 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), Imation Corp. (imaging and information storage, 1997). He is a Board member of Dynatech Corporation (electronics, 1999). *ROBERT C. POZEN (53), Trustee (1997), is Senior Vice President of the funds (1997). Mr. Pozen also serves as Senior Vice President of other Fidelity funds (1997). He is President and a Director of FMR (1997), Fidelity Management & Research (U.K.) Inc. (1997), Fidelity Management & Research (Far East) Inc. (1997), Fidelity Investments Money Management, Inc. (1998), and FMR Co., Inc. (2000); and a Director of Strategic Advisers, Inc. (1999). Previously, Mr. Pozen served as General Counsel, Managing Director, and Senior Vice President of FMR Corp. THOMAS R. WILLIAMS (71), 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 National Life Insurance Company of Vermont and American Software, Inc. Mr. Williams was previously a Director of ConAgra, Inc. (agricultural products), Georgia Power Company (electric utility), and Avado, Inc. (restaurants). BOYCE I. GREER (44), is Vice President of Select Money Market Portfolio (1997). He serves as Vice President of Money Market Funds (1997), Group Leader of the Money Market Group (1997), Senior Vice President of FMR (1997), and Vice President of FIMM (1998). Mr. Greer served as the Leader of the Fixed-Income Group for Fidelity Management Trust Company (1993-1995) and was Vice President and Group Leader of Municipal Fixed-Income Investments (1996-1997). JOHN T. TODD (51), is Vice President of Select Money Market Portfolio (1996) and other funds advised by FMR. Prior to his current responsibilities, Mr. Todd managed a variety of Fidelity funds. ERIC D. ROITER (51), is Secretary of the funds (1998). He also serves as Secretary of other Fidelity funds (1998); Vice President, General Counsel, and Clerk of FMR (1998); and Vice President and Clerk of FDC (1998). Prior to joining Fidelity, Mr. Roiter was with the law firm of Debevoise & Plimpton, as an associate (1981-1984) and as a partner (1985-1997), and served as an Assistant General Counsel of the U.S. Securities and Exchange Commission (1979-1981). Mr. Roiter was an Adjunct Member, Faculty of Law, at Columbia University Law School (1996-1997). ROBERT A. DWIGHT (41), is Treasurer of the funds (2000). Mr. Dwight also serves as Treasurer of other Fidelity funds (2000) and is an employee of FMR. Prior to becoming Treasurer of the Fidelity funds, he served as President of Fidelity Accounting and Custody Services (FACS). Before joining Fidelity, Mr. Dwight was Senior Vice President of fund accounting operations for The Boston Company. MARIA F. DWYER (41), is Deputy Treasurer of the funds (2000). She also serves as Deputy Treasurer of other Fidelity funds (2000) and is a Vice President (1999) and an employee (1996) of FMR. Prior to joining Fidelity, Ms. Dwyer served as Director of Compliance for MFS Investment Management. MATTHEW N. KARSTETTER (38), is Deputy Treasurer of the funds (1998). He also serves as Deputy Treasurer of other Fidelity funds (1998) and is an employee of FMR (1998). Before joining FMR, Mr. Karstetter served as Vice President of Investment Accounting and Treasurer of IDS Mutual Funds at American Express Financial Advisors (1996-1998). Prior to 1996, Mr. Karstetter was Vice President, Mutual Fund Services at State Street Bank & Trust (1991-1996). STANLEY N. GRIFFITH (53), is Assistant Vice President of Select Money Market Portfolio (1998). Mr Griffith is Assistant Vice President of Fidelity's Fixed-Income Funds (1998) and an employee of FMR Corp. JOHN H. COSTELLO (53), is Assistant Treasurer of the funds. Mr. Costello also serves as Assistant Treasurer of other Fidelity funds and is an employee of FMR. THOMAS J. SIMPSON (41), is Assistant Treasurer of Select Money Market Portfolio (1996). Mr. Simpson is Assistant Treasurer of Fidelity's Fixed-Income Funds (1998) and an employee of FMR (1996). Prior to joining FMR, Mr. Simpson was Vice President and Fund Controller of Liberty Investment Services (1987-1995). The following table sets forth information describing the compensation of each Trustee and Member of the Advisory Board of each fund for his or her services for the fiscal year ended February 29, 2000, or calendar year ended December 31, 1999, as applicable. COMPENSATION TABLE
AGGREGATE COMPENSATION FROM A Edward C. Johnson 3d** Abigail P. Johnson** J. Michael Cook ***** Ralph F. Cox FUNDA Air TransportationB $ 0 $ 0 $ 0 $ 16 AutomotiveB $ 0 $ 0 $ 0 $ 8 BankingB $ 0 $ 0 $ 0 $ 209 BiotechnologyB $ 0 $ 0 $ 0 $ 299 Brokerage and Investment $ 0 $ 0 $ 0 $ 135 ManagementB Business Services and $ 0 $ 0 $ 0 $ 18 OutsourcingB ChemicalsB $ 0 $ 0 $ 0 $ 11 ComputersB $ 0 $ 0 $ 0 $ 642 Construction and HousingB $ 0 $ 0 $ 0 $ 6 Consumer IndustriesB $ 0 $ 0 $ 0 $ 21 Cyclical IndustriesB $ 0 $ 0 $ 0 $ 2 Defense and AerospaceB $ 0 $ 0 $ 0 $ 10 Developing CommunicationsB $ 0 $ 0 $ 0 $ 348 ElectronicsB $ 0 $ 0 $ 0 $ 1,191 EnergyB $ 0 $ 0 $ 0 $ 57 Energy ServiceB $ 0 $ 0 $ 0 $ 186 Environmental ServicesB $ 0 $ 0 $ 0 $ 4 Financial ServicesB $ 0 $ 0 $ 0 $ 148 Food and AgricultureB $ 0 $ 0 $ 0 $ 45 GoldB $ 0 $ 0 $ 0 $ 54 Health Care B, C, D $ 0 $ 0 $ 0 $ 800 Home FinanceB $ 0 $ 0 $ 0 $ 154 Industrial EquipmentB $ 0 $ 0 $ 0 $ 10 Industrial MaterialsB $ 0 $ 0 $ 0 $ 6 InsuranceB $ 0 $ 0 $ 0 $ 19 LeisureB $ 0 $ 0 $ 0 $ 113 Medical DeliveryB $ 0 $ 0 $ 0 $ 19 Medical Equipment and SystemsB $ 0 $ 0 $ 0 $ 10 MultimediaB $ 0 $ 0 $ 0 $ 57 Natural GasB $ 0 $ 0 $ 0 $ 16 Natural ResourcesB $ 0 $ 0 $ 0 $ 5 Paper and Forest ProductsB $ 0 $ 0 $ 0 $ 6 RetailingB $ 0 $ 0 $ 0 $ 57 Software and Computer ServicesB $ 0 $ 0 $ 0 $ 234 TechnologyB $ 0 $ 0 $ 0 $ 715 TelecommunicationsB $ 0 $ 0 $ 0 $ 309 TransportationB $ 0 $ 0 $ 0 $ 6 Utilities GrowthB $ 0 $ 0 $ 0 $ 165 Money MarketB $ 0 $ 0 $ 0 $ 297 TOTAL COMPENSATION FROM THE $ 0 $ 0 $ 0 $ 217,500 FUND COMPLEX*, A
AGGREGATE COMPENSATION FROM A Phyllis Burke Davis Robert M. Gates E. Bradley Jones **** Donald J. Kirk FUNDA Air TransportationB $ 16 $ 16 $ 15 $ 17 AutomotiveB $ 8 $ 8 $ 7 $ 8 BankingB $ 201 $ 208 $ 184 $ 211 BiotechnologyB $ 294 $ 296 $ 212 $ 304 Brokerage and Investment $ 131 $ 135 $ 113 $ 137 ManagementB Business Services and $ 18 $ 18 $ 15 $ 18 OutsourcingB ChemicalsB $ 11 $ 11 $ 9 $ 11 ComputersB $ 627 $ 637 $ 490 $ 652 Construction and HousingB $ 6 $ 6 $ 6 $ 6 Consumer IndustriesB $ 21 $ 21 $ 18 $ 22 Cyclical IndustriesB $ 2 $ 2 $ 2 $ 2 Defense and AerospaceB $ 10 $ 10 $ 9 $ 10 Developing CommunicationsB $ 341 $ 344 $ 242 $ 354 ElectronicsB $ 1,172 $ 1,179 $ 863 $ 1,211 EnergyB $ 55 $ 56 $ 47 $ 57 Energy ServiceB $ 181 $ 185 $ 157 $ 189 Environmental ServicesB $ 4 $ 4 $ 4 $ 4 Financial ServicesB $ 143 $ 147 $ 127 $ 150 Food and AgricultureB $ 44 $ 45 $ 40 $ 46 GoldB $ 52 $ 53 $ 44 $ 54 Health Care B, C, D $ 775 $ 796 $ 678 $ 810 Home FinanceB $ 148 $ 153 $ 137 $ 155 Industrial EquipmentB $ 10 $ 10 $ 9 $ 10 Industrial MaterialsB $ 6 $ 6 $ 5 $ 6 InsuranceB $ 18 $ 19 $ 17 $ 19 LeisureB $ 109 $ 112 $ 94 $ 114 Medical DeliveryB $ 18 $ 18 $ 16 $ 19 Medical Equipment and SystemsB $ 10 $ 10 $ 8 $ 11 MultimediaB $ 55 $ 56 $ 45 $ 58 Natural GasB $ 16 $ 16 $ 13 $ 16 Natural ResourcesB $ 4 $ 4 $ 4 $ 5 Paper and Forest ProductsB $ 6 $ 6 $ 5 $ 6 RetailingB $ 55 $ 57 $ 51 $ 58 Software and Computer ServicesB $ 229 $ 232 $ 170 $ 238 TechnologyB $ 705 $ 706 $ 472 $ 728 TelecommunicationsB $ 302 $ 306 $ 232 $ 314 TransportationB $ 6 $ 6 $ 5 $ 6 Utilities GrowthB $ 161 $ 164 $ 134 $ 167 Money MarketB $ 289 $ 295 $ 248 $ 301 TOTAL COMPENSATION FROM THE $ 211,500 $ 217,500 $ 217,500 $ 217,500 FUND COMPLEX*, A
AGGREGATE COMPENSATION FROM A Ned C. Lautenbach *** Peter S. Lynch ** William O. McCoy Gerald C. McDonough Marvin L. Mann FUNDA Air TransportationB $ 5 $ 0 $ 16 $ 20 $ 17 AutomotiveB $ 2 $ 0 $ 8 $ 10 $ 8 BankingB $ 68 $ 0 $ 207 $ 259 $ 210 BiotechnologyB $ 162 $ 0 $ 295 $ 373 $ 302 Brokerage and Investment $ 50 $ 0 $ 134 $ 168 $ 136 ManagementB Business Services and $ 8 $ 0 $ 18 $ 23 $ 18 OutsourcingB ChemicalsB $ 4 $ 0 $ 11 $ 14 $ 11 ComputersB $ 307 $ 0 $ 633 $ 800 $ 647 Construction and HousingB $ 1 $ 0 $ 6 $ 8 $ 6 Consumer IndustriesB $ 8 $ 0 $ 21 $ 26 $ 21 Cyclical IndustriesB $ 1 $ 0 $ 2 $ 2 $ 2 Defense and AerospaceB $ 3 $ 0 $ 10 $ 12 $ 10 Developing CommunicationsB $ 185 $ 0 $ 344 $ 435 $ 352 ElectronicsB $ 638 $ 0 $ 1,174 $ 1,486 $ 1,202 EnergyB $ 24 $ 0 $ 56 $ 71 $ 57 Energy ServiceB $ 75 $ 0 $ 184 $ 232 $ 187 Environmental ServicesB $ 1 $ 0 $ 4 $ 6 $ 4 Financial ServicesB $ 53 $ 0 $ 146 $ 184 $ 149 Food and AgricultureB $ 15 $ 0 $ 45 $ 56 $ 45 GoldB $ 23 $ 0 $ 53 $ 67 $ 54 Health Care B, C, D $ 301 $ 0 $ 790 $ 995 $ 805 Home FinanceB $ 46 $ 0 $ 152 $ 190 $ 154 Industrial EquipmentB $ 4 $ 0 $ 10 $ 12 $ 10 Industrial MaterialsB $ 2 $ 0 $ 6 $ 8 $ 6 InsuranceB $ 6 $ 0 $ 19 $ 24 $ 19 LeisureB $ 43 $ 0 $ 111 $ 140 $ 113 Medical DeliveryB $ 6 $ 0 $ 18 $ 23 $ 19 Medical Equipment and SystemsB $ 5 $ 0 $ 10 $ 13 $ 11 MultimediaB $ 25 $ 0 $ 56 $ 71 $ 57 Natural GasB $ 7 $ 0 $ 16 $ 20 $ 16 Natural ResourcesB $ 2 $ 0 $ 4 $ 6 $ 5 Paper and Forest ProductsB $ 2 $ 0 $ 6 $ 7 $ 6 RetailingB $ 15 $ 0 $ 57 $ 71 $ 58 Software and Computer ServicesB $ 118 $ 0 $ 231 $ 292 $ 236 TechnologyB $ 420 $ 0 $ 705 $ 894 $ 723 TelecommunicationsB $ 148 $ 0 $ 305 $ 385 $ 312 TransportationB $ 2 $ 0 $ 6 $ 7 $ 6 Utilities GrowthB $ 70 $ 0 $ 163 $ 206 $ 166 Money MarketB $ 124 $ 0 $ 292 $ 369 $ 299 TOTAL COMPENSATION FROM THE $ 54,000 $ 0 $ 214,500 $ 269,000 $ 217,500 FUND COMPLEX*, A
AGGREGATE COMPENSATION FROM A Robert C. Pozen** Thomas R. Williams FUNDA Air TransportationB $ 0 $ 16 AutomotiveB $ 0 $ 8 BankingB $ 0 $ 204 BiotechnologyB $ 0 $ 295 Brokerage and Investment $ 0 $ 132 ManagementB Business Services and $ 0 $ 18 OutsourcingB ChemicalsB $ 0 $ 11 ComputersB $ 0 $ 631 Construction and HousingB $ 0 $ 6 Consumer IndustriesB $ 0 $ 21 Cyclical IndustriesB $ 0 $ 2 Defense and AerospaceB $ 0 $ 10 Developing CommunicationsB $ 0 $ 342 ElectronicsB $ 0 $ 1,174 EnergyB $ 0 $ 55 Energy ServiceB $ 0 $ 182 Environmental ServicesB $ 0 $ 4 Financial ServicesB $ 0 $ 145 Food and AgricultureB $ 0 $ 44 GoldB $ 0 $ 53 Health Care B, C, D $ 0 $ 783 Home FinanceB $ 0 $ 150 Industrial EquipmentB $ 0 $ 10 Industrial MaterialsB $ 0 $ 6 InsuranceB $ 0 $ 19 LeisureB $ 0 $ 110 Medical DeliveryB $ 0 $ 18 Medical Equipment and SystemsB $ 0 $ 10 MultimediaB $ 0 $ 56 Natural GasB $ 0 $ 16 Natural ResourcesB $ 0 $ 4 Paper and Forest ProductsB $ 0 $ 6 RetailingB $ 0 $ 56 Software and Computer ServicesB $ 0 $ 230 TechnologyB $ 0 $ 705 TelecommunicationsB $ 0 $ 303 TransportationB $ 0 $ 6 Utilities GrowthB $ 0 $ 162 Money MarketB $ 0 $ 291 TOTAL COMPENSATION FROM THE $ 0 $ 213,000 FUND COMPLEX*, A
* Information is for the calendar year ended December 31, 1999 for 236 funds in the complex. ** Interested Trustees of the funds and Ms. Johnson are compensated by FMR. *** During the period from October 14, 1999 through December 31, 1999, Mr. Lautenbach served as a Member of the Advisory Board. Effective January 1, 2000, Mr. Lautenbach serves as a Member of the Board of Trustees. **** Mr. Jones served on the Board of Trustees through December 31, 1999. ***** Effective March 16, 2000, Mr. Cook serves as a Member of the Advisory Board. A Compensation figures include cash, amounts required to be deferred, and may include amounts deferred at the election of Trustees. For the calendar year ended December 31, 1999, the Trustees accrued required deferred compensation from the funds as follows: Ralph F. Cox, $75,000; Phyllis Burke Davis, $75,000; Robert M. Gates, $75,000; E. Bradley Jones, $75,000; Donald J. Kirk, $75,000; William O. McCoy, $75,000; Gerald C. McDonough, $87,500; Marvin L. Mann, $75,000; and Thomas R. Williams, $75,000. Certain of the non-interested Trustees elected voluntarily to defer a portion of their compensation as follows: Ralph F. Cox, $53,735; William O. McCoy, $53,735; and Thomas R. Williams, $62,319. B Compensation figures include cash, and may include amounts required to be deferred and amounts deferred at the election of Trustees. C The following amounts are required to be deferred by each non-interested Trustee: Ralph F. Cox, $390; Phyllis Burke Davis, $390; Robert M. Gates, $390; E. Bradley Jones, $317; Donald J. Kirk, $390; Ned C. Lautenbach, $73; William O. McCoy, $390; Gerald C. McDonough, $463; Marvin L. Mann, $390; and Thomas R. Williams, $390. D Certain of the non-interested Trustees' aggregate compensation from a fund includes accrued voluntary deferred compensation as follows: Ralph F. Cox, $296, Health Care; Ned C. Lautenbach, $33, Health Care; William O. McCoy, $296, Health Care; and Thomas R. Williams, $296, Health Care. Under a deferred compensation plan adopted in September 1995 and amended in November 1996 and January 2000 (the Plan), non-interested Trustees must defer receipt of a portion of, and may elect to defer receipt of an additional portion of, their annual fees. Amounts deferred under the Plan are treated as though equivalent dollar amounts had been invested in shares of a cross-section of Fidelity funds including funds in each major investment discipline and representing a majority of Fidelity's assets under management (the Reference Funds). The amounts ultimately received by the Trustees under the Plan will be directly linked to the investment performance of the Reference Funds. Deferral of fees in accordance with the Plan will have a negligible effect on a fund's assets, liabilities, and net income per share, and will not obligate a fund to retain the services of any Trustee or to pay any particular level of compensation to the Trustee. A fund may invest in the Reference Funds under the Plan without shareholder approval. As of February 29, 2000, approximately 29.48% of Cyclical Industries', approximately 39.24% of Natural Resources', and approximately 1.03% of Technology's total outstanding shares were held by FMR affiliates. FMR Corp. is the ultimate parent company of these FMR affiliates. By virtue of their ownership interest in FMR Corp., as described in the "Control of Investment Advisers" section on page 92, Mr. Edward C. Johnson 3d, President and Trustee of the fund, and Ms. Abigail P. Johnson, Member of the Advisory Board of the fund, may be deemed to be a beneficial owner of these shares. As of the above date, with the exception of Mr. Johnson 3d's and Ms. Johnson's deemed ownership of Cyclical Industries', Natural Resources', and Technology's shares, the Trustees, Member of the Advisory Board, and officers of the funds owned, in the aggregate, less than 1% of each fund's total outstanding shares. As of February 29, 2000, the following owned of record or beneficially 5% or more (up to and including 25%) of each fund's outstanding shares: Construction and Housing: Simon Malishkevich, New York, NY (6.14%). Cyclical Industries: James J. Hoffman, White Plains, NY (5.09%); FMR Capital, Boston, MA (29.48%). Energy: Boston College, Chestnut Hill, MA (5.57%). Multimedia: Viacom Inc., New York, NY (10.65%). Natural Resources: Fidelity Strategic Advisors, Boston, MA (34.97%). A shareholder owning of record or beneficially more than 25% of a fund's outstanding shares may be considered a controlling person. That shareholder's vote could have a more significant effect on matters presented at a shareholders' meeting than votes of other shareholders. CONTROL OF INVESTMENT ADVISERS FMR Corp., organized in 1972, is the ultimate parent company of FMR, Fidelity Investments Money Management, Inc. (FIMM), Fidelity Management & Research (U.K.) Inc. (FMR U.K.), Fidelity Management & Research (Far East) Inc. (FMR Far East) and FMR Co., Inc. (FMRC). The voting common stock of FMR Corp. is divided into two classes. Class B is held predominantly by members of the Edward C. Johnson 3d family and is entitled to 49% of the vote on any matter acted upon by the voting common stock. Class A is held predominantly by non-Johnson family member employees of FMR Corp. and its affiliates and is entitled to 51% of the vote on any such matter. The Johnson family group and all other Class B shareholders have entered into a shareholders' voting agreement under which all Class B shares will be voted in accordance with the majority vote of Class B shares. Under the 1940 Act, control of a company is presumed where one individual or group of individuals owns more than 25% of the voting stock of that company. Therefore, through their ownership of voting common stock and the execution of the shareholders' voting agreement, members of the Johnson family may be deemed, under the 1940 Act, to form a controlling group with respect to FMR Corp. At present, the principal operating activities of FMR Corp. are those conducted by its division, Fidelity Investments Retail Marketing Company, which provides marketing services to various companies within the Fidelity organization. Fidelity International Limited (FIL), a Bermuda company formed in 1968, is the ultimate parent company of Fidelity Investments Japan Limited (FIJ). Edward C. 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. FIL provides investment advisory services to non-U.S. investment companies and institutional investors investing in securities throughout the world. The funds, FMR, FIMM, FMRC, FMR U.K., FMR Far East, FIJ, and FDC have adopted a code of ethics under Rule 17j-1 of the 1940 Act that sets forth employees' fiduciary responsibilities regarding the funds, establishes procedures for personal investing, and restricts certain transactions. Employees subject to the code of ethics, including Fidelity investment personnel, may invest in securities for their own investment accounts, including securities that may be purchased or held by the funds. MANAGEMENT CONTRACTS Each fund has entered into a management contract with FMR, pursuant to which FMR furnishes investment advisory and other services. MANAGEMENT SERVICES. Under the terms of its management contract with each fund, FMR acts as investment adviser and, subject to the supervision of the Board of Trustees, directs the investments of the fund in accordance with its investment objective, policies and limitations. FMR also provides each fund with all necessary office facilities and personnel for servicing the fund's investments, compensates all officers of each fund and all Trustees who are "interested persons" of the trust or of FMR, and all personnel of each fund 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 each fund. These services include providing facilities for maintaining each fund's organization; supervising relations with custodians, transfer and pricing agents, accountants, underwriters and other persons dealing with each fund; preparing all general shareholder communications and conducting shareholder relations; maintaining each fund's records and the registration of each fund's shares under federal securities laws and making necessary filings under state securities laws; developing management and shareholder services for each fund; and furnishing reports, evaluations and analyses on a variety of subjects to the Trustees. MANAGEMENT-RELATED EXPENSES. In addition to the management fee payable to FMR and the fees payable to the transfer, dividend disbursing, and shareholder servicing agent, pricing and bookkeeping agent, and the costs associated with securities lending, as applicable, each fund pays all of its expenses that are not assumed by those parties. Each fund pays for the typesetting, printing, and mailing of its proxy materials to shareholders, legal expenses, and the fees of the custodian, auditor, and non-interested Trustees. Each fund's management contract further provides that the fund will pay for typesetting, printing, and mailing prospectuses, statements of additional information, notices, and reports to shareholders; however, under the terms of each fund's transfer agent agreement, the transfer agent bears the costs of providing these services to existing shareholders. Other expenses paid by each fund include interest, taxes, brokerage commissions, the fund's proportionate share of insurance premiums and Investment Company Institute dues, and the costs of registering shares under federal securities laws and making necessary filings under state securities laws. Each fund is also liable for such non-recurring expenses as may arise, including costs of any litigation to which the fund may be a party, and any obligation it may have to indemnify its officers and Trustees with respect to litigation. MANAGEMENT FEES. For the services of FMR under the management contract, each stock fund pays FMR a monthly management fee which has two components: a group fee rate and an individual fund fee rate. For the services of FMR under the management contract, the money market fund pays FMR a monthly management fee which has three components: a group fee rate, an individual fund fee rate, and an income-based component of 6% of the fund's monthly gross income in excess of an annualized 5% yield. For this purpose, gross income includes interest accrued and/or discount earned (including both original issue discount and market discount) on portfolio obligations, less amortization of premium on portfolio obligations. The maximum income-based component is an amount equal to an annual rate of 0.24% of the fund's average net assets throughout the month. 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. The following is the fee schedule for the money market fund.
MONEY MARKET FUND GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate 0 - $3 billion .3700% $ 1 billion .3700% 3 - 6 .3400 50 .2188 6 - 9 .3100 100 .1869 9 - 12 .2800 150 .1736 12 - 15 .2500 200 .1652 15 - 18 .2200 250 .1587 18 - 21 .2000 300 .1536 21 - 24 .1900 350 .1494 24 - 30 .1800 400 .1459 30 - 36 .1750 450 .1427 36 - 42 .1700 500 .1399 42 - 48 .1650 550 .1372 48 - 66 .1600 600 .1349 66 - 84 .1550 650 .1328 84 - 120 .1500 700 .1309 120 - 156 .1450 750 .1291 156 - 192 .1400 800 .1275 192 - 228 .1350 850 .1260 228 - 264 .1300 900 .1246 264 - 300 .1275 950 .1233 300 - 336 .1250 1,000 .1220 336 - 372 .1225 1,050 .1209 372 - 408 .1200 1,100 .1197 408 - 444 .1175 1,150 .1187 444 - 480 .1150 1,200 .1177 480 - 516 .1125 1,250 .1167 516 - 587 .1100 1,300 .1158 587 - 646 .1080 1,350 .1149 646 - 711 .1060 1,400 .1141 711 - 782 .1040 782 - 860 .1020 860 - 946 .1000 946 - 1,041 .0980 1,041 - 1,145 .0960 1,145 - 1,260 .0940 Over 1,260 .0920
The group fee rate is calculated on a cumulative basis pursuant to the graduated fee rate schedule shown above on the left. The schedule above on the right shows the effective annual group fee rate at various asset levels, which is the result of cumulatively applying the annualized rates on the left. For example, the effective annual fee rate at $852 billion of group net assets - the approximate level for February 2000 - was 0.1260%, which is the weighted average of the respective fee rates for each level of group net assets up to $852 billion. The following is the fee schedule for the stock funds.
STOCK FUNDS GROUP FEE RATE SCHEDULE EFFECTIVE ANNUAL FEE RATES Average Group Assets Annualized Rate Group Net Assets Effective Annual Fee Rate 0 - $3 billion .5200% $ 1 billion .5200% 3 - 6 .4900 50 .3823 6 - 9 .4600 100 .3512 9 - 12 .4300 150 .3371 12 - 15 .4000 200 .3284 15 - 18 .3850 250 .3219 18 - 21 .3700 300 .3163 21 - 24 .3600 350 .3113 24 - 30 .3500 400 .3067 30 - 36 .3450 450 .3024 36 - 42 .3400 500 .2982 42 - 48 .3350 550 .2942 48 - 66 .3250 600 .2904 66 - 84 .3200 650 .2870 84 - 102 .3150 700 .2838 102 - 138 .3100 750 .2809 138 - 174 .3050 800 .2782 174 - 210 .3000 850 .2756 210 - 246 .2950 900 .2732 246 - 282 .2900 950 .2710 282 - 318 .2850 1,000 .2689 318 - 354 .2800 1,050 .2669 354 - 390 .2750 1,100 .2649 390 - 426 .2700 1,150 .2631 426 - 462 .2650 1,200 .2614 462 - 498 .2600 1,250 .2597 498 - 534 .2550 1,300 .2581 534 - 587 .2500 1,350 .2566 587 - 646 .2463 1,400 .2551 646 - 711 .2426 711 - 782 .2389 782 - 860 .2352 860 - 946 .2315 946 - 1,041 .2278 1,041 - 1,145 .2241 1,145 - 1,260 .2204 Over 1,260 .2167
The group fee rate is calculated on a cumulative basis pursuant to the graduated fee rate schedule shown above on the left. The schedule above on the right shows the effective annual group fee rate at various asset levels, which is the result of cumulatively applying the annualized rates on the left. For example, the effective annual fee rate at $852 billion of group net assets - the approximate level for February 2000 - was 0.2755%, which is the weighted average of the respective fee rates for each level of group net assets up to $852 billion. Each stock fund's individual fund fee rate is 0.30%. Based on the average group net assets of the funds advised by FMR for February 2000, each stock fund's annual management fee rate would be calculated as follows:
Group Fee Rate Individual Fund Fee Rate Management Fee Rate Stock Funds 0.2755% + 0.30% = 0.5755%
One-twelfth of the management fee rate is applied to each stock fund's average net assets for the month, giving a dollar amount which is the fee for that month. The money market fund's individual fund fee rate is 0.03%. One-twelfth of the sum of the group fee rate and the individual fund fee rate is applied to the fund's average net assets for the month, giving a dollar amount which is the fee for that month to which the income-based component is added. The following table shows the amount of management fees paid by each fund to FMR for the past three fiscal years.
Fund Fiscal Years Ended February 28 Management Fees Paid to FMR Air Transportation 2000(dagger) $ 322,853 1999 $ 573,138 1998 $ 378,349 Automotive 2000(dagger) $ 132,781 1999 $ 357,296 1998 $ 369,375 Banking 2000(dagger) $ 4,050,752 1999 $ 7,314,180 1998 $ 6,188,500 Biotechnology 2000(dagger) $ 7,618,538 1999 $ 3,390,377 1998 $ 3,442,469 Brokerage and Investment 2000(dagger) $ 2,764,553 Management 1999 $ 4,267,725 1998 $ 2,493,991 Business Services and 2000(dagger) $ 373,270 Outsourcing 1999 $ 326,653 1998* $ 2,948 Chemicals 2000(dagger) $ 224,179 1999 $ 276,652 1998 $ 496,851 Computers 2000(dagger) $ 13,963,837 1999 $ 6,013,190 1998 $ 3,921,116 Construction and Housing 2000(dagger) $ 94,274 1999 $ 490,439 1998 $ 155,730 Consumer Industries 2000(dagger) $ 432,129 1999 $ 457,965 1998 $ 161,119 Cyclical Industries 2000(dagger) $ 37,738 1999 $ 22,236 1998** $ 21,141 Defense and Aerospace 2000(dagger) $ 202,860 1999 $ 312,058 1998 $ 381,060 Developing Communications 2000(dagger) $ 8,255,415 1999 $ 1,854,817 1998 $ 1,420,790 Electronics 2000(dagger) $ 27,111,529 1999 $ 13,375,808 1998 $ 14,146,742 Energy 2000(dagger) $ 1,204,091 1999 $ 825,294 1998 $ 1,137,325 Energy Service 2000(dagger) $ 3,977,952 1999 $ 3,826,822 1998 $ 5,735,646 Environmental Services 2000(dagger) $ 92,828 1999 $ 122,145 1998 $ 165,498 Financial Services 2000(dagger) $ 2,973,467 1999 $ 3,668,034 1998 $ 2,799,557 Food and Agriculture 2000(dagger) $ 872,870 1999 $ 1,335,082 1998 $ 1,473,308 Gold 2000(dagger) $ 1,103,778 1999 $ 1,216,228 1998 $ 1,664,398 Health Care 2000(dagger) $ 16,196,325 1999 $ 14,851,440 1998 $ 9,512,189 Home Finance 2000(dagger) $ 2,904,120 1999 $ 7,895,622 1998 $ 7,971,664 Industrial Equipment 2000(dagger) $ 204,936 1999 $ 249,535 1998 $ 358,194 Industrial Materials 2000(dagger) $ 132,530 1999 $ 94,263 1998 $ 178,398 Insurance 2000(dagger) $ 366,679 1999 $ 645,431 1998 $ 657,447 Leisure 2000(dagger) $ 2,325,785 1999 $ 1,721,162 1998 $ 853,326 Medical Delivery 2000(dagger) $ 366,977 1999 $ 909,497 1998 $ 949,169 Medical Equipment and Systems 2000(dagger) $ 228,913 1999*** $ 80,475 Multimedia 2000(dagger) $ 1,229,878 1999 $ 768,461 1998 $ 355,794 Natural Gas 2000(dagger) $ 339,370 1999 $ 301,788 1998 $ 489,011 Natural Resources 2000(dagger) $ 98,795 1999 $ 38,307 1998** $ 38,241 Paper and Forest Products 2000(dagger) $ 124,175 1999 $ 87,942 1998 $ 144,890 Retailing 2000(dagger) $ 1,047,886 1999 $ 1,658,052 1998 $ 911,425 Software and Computer Services 2000(dagger) $ 5,131,852 1999 $ 3,378,317 1998 $ 2,593,824 Technology 2000(dagger) $ 17,262,679 1999 $ 4,515,599 1998 $ 3,293,787 Telecommunications 2000(dagger) $ 6,819,043 1999 $ 4,615,660 1998 $ 2,473,329 Transportation 2000(dagger) $ 121,154 1999 $ 142,306 1998 $ 341,054 Utilities Growth 2000(dagger) $ 3,483,400 1999 $ 2,410,584 1998 $ 1,639,699 Money Market 2000(dagger) $ 1,924,888 1999 $ 1,853,858 1998 $ 1,715,272
(dagger) Fiscal year ended February 29. * Business Services and Outsourcing commenced operations of February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. FMR may, from time to time, voluntarily reimburse all or a portion of a fund's operating expenses (exclusive of interest, taxes, certain securities lending costs, brokerage commissions, and extraordinary expenses), which, in the case of certain funds, is subject to revision or discontinuance. FMR retains the ability to be repaid for these expense reimbursements in the amount that expenses fall below the limit prior to the end of the fiscal year. Expense reimbursements by FMR will increase a fund's returns and yield, and repayment of the reimbursement by a fund will lower its returns and yield. FMR agreed to reimburse certain of the funds if and to the extent that the fund's aggregate operating expenses, including management fees, were in excess of an annual rate of its average net assets. The table below shows the periods of reimbursement and levels of expense limitations for the applicable funds; the dollar amount of management fees incurred under each fund's contract before reimbursement; and the dollar amount of management fees reimbursed by FMR under the expense reimbursement for each period.
Aggregate Operating Expense Fiscal Years Ended February 28 Management Fee Before Limitation Reimbursement Business Services and 2.50% 1998* $ 2,948 Outsourcing Construction and Housing 2.50% 1998 $ 155,730 Cyclical Industries 2.50% 2000(dagger) $ 37,738 1999 $ 22,236 1998** $ 21,141 Natural Resources 2.50% 1999 $ 38,307 1998** $ 38,241
Amount of Management Fee Reimbursement Business Services and $ 2,948 Outsourcing Construction and Housing $ 9,992 Cyclical Industries $ 27,913 $ 22,236 $ 21,141 Natural Resources $ 38,307 $ 38,241
* Business Services and Outsourcing commenced operations of February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. (dagger) Fiscal year ended February 29. SUB-ADVISERS. On behalf of the money market fund, FMR has entered into a sub-advisory agreement with FIMM pursuant to which FIMM has primary responsibility for choosing investments for the fund. Prior to January 23, 1998, FMR Texas Inc. (FMR Texas) had primary responsibility for providing investment management services to the money market fund. On January 23, 1998, FMR Texas was merged into FIMM, which succeeded to the operations of FMR Texas. Under the terms of the sub-advisory agreement for the money market fund, FMR pays FIMM fees equal to 50% of the management fee payable to FMR under its management contract with the fund. The fees paid to FIMM are not reduced by any voluntary or mandatory expense reimbursements that may be in effect from time to time. On behalf of the money market fund, for the fiscal year ended February 28, 1998, FMR paid FMR Texas a fee of $857,636. On behalf of the money market fund, for the fiscal years ended February 29, 2000 and February 28, 1999, FMR paid FIMM fees of $962,444 and $926,930, respectively. On January 1, 2001, FMR will enter into a sub-advisory agreement with FMRC on behalf of the stock funds pursuant to which FMRC will have primary responsibility for choosing investments for the stock funds. Under the terms of the sub-advisory agreements for each stock fund, FMR will pay FMRC fees equal to 50% of the management fee payable to FMR under its management contract with each fund. The fees paid to FMRC will not be reduced by any voluntary or mandatory expense reimbursements that may be in effect from time to time. On behalf of the stock funds, FMR has entered into sub-advisory agreements with FMR U.K. and FMR Far East. Pursuant to the sub-advisory agreements, FMR may receive from the sub-advisers investment research and advice on issuers outside the United States and FMR 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. On behalf of the stock funds, FMR Far East has entered into a sub-advisory agreement with FIJ pursuant to which FMR Far East may receive from FIJ investment research and advice relating to Japanese issuers (and such other Asian issuers as FMR Far East may designate). For providing non-discretionary investment advice and research services the sub-advisers are compensated as follows: (small solid bullet) 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. (small solid bullet) FMR Far East pays FIJ a fee equal to 100% of FIJ's costs incurred in connection with providing investment advice and research services for a fund to FMR Far East. On behalf of the stock funds, for providing discretionary investment management and executing portfolio transactions, the sub-advisers are compensated as follows: (small solid bullet) FMR pays FMR U.K. and FMR Far East a fee equal to 50% of its monthly management fee with respect to the fund's average net assets managed by the sub-adviser on a discretionary basis. For providing investment advice and research services, fees paid to FMR U.K., FMR Far East, and FIJ on behalf of the stock funds for the past three fiscal years are shown in the table below. Fiscal Year Ended February 28 FMR U.K. FMR Far East FIJ Air Transportation 2000(dagger) $ 570 $ 309 $ 0 1999 $ 2,553 $ 2,411 $ 0 1998 $ 3,327 $ 3,202 $ 0 Automotive 2000(dagger) $ 2,332 $ 1,305 $ 0 1999 $ 6,503 $ 5,175 $ 0 1998 $ 4,434 $ 4,325 $ 0 Banking 2000(dagger) $ 0 $ 0 $ 0 1999 $ 3,255 $ 3,095 $ 0 1998 $ 6,772 $ 6,544 $ 0 Biotechnology 2000(dagger) $ 2,646 $ 596 $ 0 1999 $ 5,639 $ 4,245 $ 0 1998 $ 11,836 $ 10,833 $ 0 Brokerage and Investment Management 2000(dagger) $ 29,515 $ 16,669 $ 0 1999 $ 35,636 $ 31,379 $ 0 1998 $ 13,584 $ 13,185 $ 0 Business Services and Outsourcing 2000(dagger) $ 72 $ 35 $ 0 1999 $ 65 $ 48 $ 0 1998* $ 6 $ 5 $ 0 Chemicals 2000(dagger) $ 1,556 $ 928 $ 0 1999 $ 1,562 $ 1,516 $ 0 1998 $ 5,873 $ 5,590 $ 0 Computers 2000(dagger) $ 81,667 $ 43,749 $ 0 1999 $ 17,784 $ 13,154 $ 0 1998 $ 15,517 $ 15,486 $ 0 Construction and Housing 2000(dagger) $ 0 $ 0 $ 0 1999 $ 583 $ 525 $ 0 1998 $ 6 $ 5 $ 0 Consumer Industries 2000(dagger) $ 942 $ 546 $ 0 1999 $ 1,246 $ 1,024 $ 0 1998 $ 474 $ 455 $ 0 Cyclical Industries 2000(dagger) $ 0 $ 0 $ 0 1999 $ 13 $ 9 $ 0 1998** $ 40 $ 40 $ 0 Defense and Aerospace 2000(dagger) $ 79 $ 41 $ 0 1999 $ 0 $ 0 $ 0 1998 $ 1,692 $ 1,755 $ 0 Developing Communications 2000(dagger) $ 101,185 $ 56,627 $ 0 1999 $ 40,270 $ 32,779 $ 0 1998 $ 19,094 $ 18,708 $ 0 Electronics 2000(dagger) $ 135,583 $ 74,675 $ 0 1999 $ 82,887 $ 72,615 $ 0 1998 $ 147,596 $ 143,650 $ 0 Energy 2000(dagger) $ 10,588 $ 5,779 $ 0 1999 $ 22,599 $ 18,894 $ 0 1998 $ 25,414 $ 24,716 $ 0 Energy Service 2000(dagger) $ 15,620 $ 8,823 $ 0 1999 $ 40,212 $ 35,640 $ 0 1998 $ 51,145 $ 49,720 $ 0 Environmental Services 2000(dagger) $ 0 $ 0 $ 0 1999 $ 17 $ 19 $ 0 1998 $ 2,414 $ 2,242 $ 0 Financial Services 2000(dagger) $ 0 $ 0 $ 0 1999 $ 4,454 $ 3,790 $ 0 1998 $ 439 $ 424 $ 0 Food and Agriculture 2000(dagger) $ 13,590 $ 7,815 $ 0 1999 $ 18,053 $ 15,039 $ 0 1998 $ 5,707 $ 5,521 $ 0 Gold 2000(dagger) $ 59,751 $ 33,288 $ 0 1999 $ 20,125 $ 15,199 $ 0 1998 $ 0 $ 0 $ 0 Health Care 2000(dagger) $ 87,073 $ 48,054 $ 0 1999 $ 97,086 $ 78,047 $ 0 1998 $ 96,459 $ 95,116 $ 0 Home Finance 2000(dagger) $ 0 $ 0 $ 0 1999 $ 9,249 $ 9,829 $ 0 1998 $ 14,065 $ 13,533 $ 0 Industrial Equipment 2000(dagger) $ 2,018 $ 1,151 $ 0 1999 $ 590 $ 533 $ 0 1998 $ 736 $ 746 $ 0 Industrial Materials 2000(dagger) $ 0 $ 0 $ 0 1999 $ 35 $ 35 $ 0 1998 $ 1,579 $ 1,540 $ 0 Insurance 2000(dagger) $ 6 $ 3 $ 0 1999 $ 917 $ 879 $ 0 1998 $ 770 $ 746 $ 0 Leisure 2000(dagger) $ 4,908 $ 2,459 $ 0 1999 $ 7,018 $ 5,868 $ 0 1998 $ 1,740 $ 1,685 $ 0 Medical Delivery 2000(dagger) $ 0 $ 0 $ 0 1999 $ 0 $ 0 $ 0 1998 $ 216 $ 187 $ 0 Medical Equipment and Systems 2000(dagger) $ 24 $ 14 $ 0 1999*** $ 73 $ 63 $ 0 Multimedia 2000(dagger) $ 2,979 $ 1,556 $ 0 1999 $ 1,632 $ 1,301 $ 0 1998 $ 711 $ 694 $ 0 Natural Gas 2000(dagger) $ 2,699 $ 1,531 $ 0 1999 $ 1,450 $ 1,150 $ 0 1998 $ 182 $ 154 $ 0 Natural Resources 2000(dagger) $ 572 $ 309 $ 0 1999 $ 1,041 $ 851 $ 0 1998** $ 559 $ 554 $ 0 Paper and Forest Products 2000(dagger) $ 988 $ 593 $ 0 1999 $ 1,858 $ 1,762 $ 0 1998 $ 809 $ 772 $ 0 Retailing 2000(dagger) $ 112 $ 56 $ 0 1999 $ 0 $ 0 $ 0 1998 $ 0 $ 0 $ 0 Software and Computer Services 2000(dagger) $ 10,739 $ 5,863 $ 0 1999 $ 14,881 $ 13,002 $ 0 1998 $ 14,371 $ 13,791 $ 0 Technology 2000(dagger) $ 156,815 $ 85,096 $ 0 1999 $ 86,248 $ 66,343 $ 0 1998 $ 23,941 $ 25,181 $ 0 Telecommunications 2000(dagger) $ 123,753 $ 68,668 $ 0 1999 $ 47,989 $ 39,416 $ 0 1998 $ 37,699 $ 36,443 $ 0 Transportation 2000(dagger) $ 75 $ 45 $ 0 1999 $ 502 $ 474 $ 0 1998 $ 571 $ 575 $ 0 Utilities Growth 2000(dagger) $ 11,958 $ 7,307 $ 0 1999 $ 3,104 $ 2,777 $ 0 1998 $ 3,855 $ 3,672 $ 0 (dagger) Fiscal year ended February 29. * Business Services and Outsourcing commenced operations of February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. For discretionary investment management and execution of portfolio transactions, no fees were paid to FMR U. K. and FMR Far East on behalf of the stock funds for the past three fiscal years. DISTRIBUTION SERVICES Each fund has entered into a distribution agreement with FDC, an affiliate of FMR. FDC is a broker-dealer registered under the Securities Exchange Act of 1934 and a member of the National Association of Securities Dealers, Inc. The distribution agreements call 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 FMR. Sales charge revenues collected and retained by FDC for the past three fiscal years are shown in the table below.
Sales Charge Revenue Fiscal Year Ended Amount Paid to FDC Amount Retained by FDC Air Transportation February 28, 2000(dagger) $ 116,840 $ 114,253 1999 $ 432,957 $ 423,538 1998 $ 299,325 $ 290,774 Automotive February 28, 2000(dagger) $ 27,747 $ 27,747 1999 $ 151,425 $ 151,425 1998 $ 70,085 $ 69,822 Banking February 28, 2000(dagger) $ 754,724 $ 753,565 1999 $ 3,590,683 $ 3,579,211 1998 $ 7,288,315 $ 7,262,004 Biotechnology February 28, 2000(dagger) $ 23,234,295 $ 23,232,011 1999 $ 1,182,620 $ 1,176,547 1998 $ 1,105,374 $ 1,099,427 Brokerage and Investment February 28, 2000(dagger) $ 1,404,092 $ 1,402,572 Management 1999 $ 4,817,568 $ 4,806,902 1998 $ 4,327,828 $ 4,314,336 Business Services and February 28, 2000(dagger) $ 305,372 $ 305,372 Outsourcing 1999 $ 661,865 $ 661,865 1998* $ 61,937 $ 61,787 Chemicals February 28, 2000(dagger) $ 91,594 $ 91,594 1999 $ 45,096 $ 44,178 1998 $ 84,712 $ 84,544 Computers February 28, 2000(dagger) $ 11,922,459 $ 11,919,086 1999 $ 9,062,985 $ 9,053,383 1998 $ 3,518,068 $ 3,494,034 Construction and Housing February 28, 2000(dagger) $ 24,695 $ 24,695 1999 $ 451,157 $ 449,854 1998 $ 257,572 $ 257,391 Consumer Industries February 28, 2000(dagger) $ 291,878 $ 288,479 1999 $ 342,823 $ 339,350 1998 $ 84,756 $ 79,995 Cyclical Industries February 28, 2000(dagger) $ 42,617 $ 42,617 1999 $ 16,210 $ 16,210 1998** $ 36,552 $ 36,552 Defense and Aerospace February 28, 2000(dagger) $ 197,536 $ 196,989 1999 $ 127,643 $ 125,494 1998 $ 312,026 $ 309,320 Developing Communications February 28, 2000(dagger) $ 13,537,124 $ 13,526,554 1999 $ 1,740,638 $ 1,737,968 1998 $ 479,806 $ 477,848 Electronics February 28, 2000(dagger) $ 29,173,213 $ 29,139,832 1999 $ 7,287,169 $ 7,252,407 1998 $ 20,665,782 $ 20,595,342 Energy February 28, 2000(dagger) $ 930,422 $ 928,434 1999 $ 570,198 $ 567,585 1998 $ 600,122 $ 592,780 Energy Service February 28, 2000(dagger) $ 2,622,816 $ 2,615,772 1999 $ 3,272,526 $ 3,265,721 1998 $ 10,530,278 $ 10,501,244 Environmental Services February 28, 2000(dagger) $ 66,627 $ 64,068 1999 $ 29,658 $ 28,390 1998 $ 42,162 $ 42,118 Financial Services February 28, 2000(dagger) $ 1,218,365 $ 1,205,409 1999 $ 2,154,649 $ 2,152,071 1998 $ 2,098,142 $ 2,087,581 Food and Agriculture February 28, 2000(dagger) $ 157,165 $ 156,771 1999 $ 373,556 $ 371,478 1998 $ 682,877 $ 665,203 Gold February 28, 2000(dagger) $ 639,487 $ 637,994 1999 $ 691,742 $ 685,928 1998 $ 916,845 $ 902,000 Health Care February 28, 2000(dagger) $ 6,917,352 $ 6,892,954 1999 $ 10,991,959 $ 10,970,853 1998 $ 4,316,495 $ 4,275,358 Home Finance February 28, 2000(dagger) $ 376,497 $ 376,195 1999 $ 4,255,219 $ 4,241,642 1998 $ 9,770,117 $ 9,751,663 Industrial Equipment February 28, 2000(dagger) $ 48,861 $ 48,861 1999 $ 25,189 $ 24,472 1998 $ 60,451 $ 60,217 Industrial Materials February 28, 2000(dagger) $ 120,846 $ 120,846 1999 $ 12,710 $ 12,337 1998 $ 21,426 $ 20,666 Insurance February 28, 2000(dagger) $ 128,554 $ 127,441 1999 $ 351,928 $ 351,772 1998 $ 686,986 $ 664,282 Leisure February 28, 2000(dagger) $ 1,258,444 $ 1,255,993 1999 $ 956,242 $ 946,671 1998 $ 457,999 $ 448,102 Medical Delivery February 28, 2000(dagger) $ 148,780 $ 147,252 1999 $ 324,894 $ 324,831 1998 $ 212,167 $ 208,986 Medical Equipment and Systems February 28, 2000(dagger) $ 317,761 $ 316,216 1999*** $ 283,524 $ 283,524 Multimedia February 28, 2000(dagger) $ 879,938 $ 878,682 1999 $ 599,274 $ 596,505 1998 $ 304,729 $ 289,533 Natural Gas February 28, 2000(dagger) $ 189,442 $ 189,442 1999 $ 123,203 $ 121,320 1998 $ 288,000 $ 286,855 Natural Resources February 28, 2000(dagger) $ 73,194 $ 73,154 1999 $ 24,488 $ 24,488 1998** $ 81,304 $ 81,304 Paper and Forest Products February 28, 2000(dagger) $ 117,490 $ 117,490 1999 $ 45,535 $ 45,535 1998 $ 82,389 $ 81,018 Retailing February 28, 2000(dagger) $ 519,808 $ 519,673 1999 $ 1,568,122 $ 1,565,474 1998 $ 622,003 $ 618,590 Software and Computer Services February 28, 2000(dagger) $ 3,756,113 $ 3,753,515 1999 $ 1,939,605 $ 1,925,580 1998 $ 1,272,908 $ 1,258,051 Technology February 28, 2000(dagger) $ 37,877,519 $ 37,853,864 1999 $ 5,573,254 $ 5,562,533 1998 $ 2,082,341 $ 2,072,865 Telecommunications February 28, 2000(dagger) $ 5,928,316 $ 5,920,617 1999 $ 3,594,841 $ 3,578,078 1998 $ 1,091,356 $ 1,084,052 Transportation February 28, 2000(dagger) $ 106,609 $ 106,409 1999 $ 94,851 $ 93,190 1998 $ 168,254 $ 167,042 Utilities Growth February 28, 2000(dagger) $ 1,834,883 $ 1,833,822 1999 $ 1,250,178 $ 1,246,320 1998 $ 629,220 $ 601,884 Money Market February 28, 2000(dagger) $ 1,898,136 $ 1,885,554 1999 $ 1,708,692 $ 1,617,903 1998 $ 2,402,715 $ 2,223,313
Deferred Sales Charge Revenue Amount Paid to FDC Amount Retained by FDC Air Transportation $ 1,637 $ 1,637 $ 2,545 $ 2,545 $ 946 $ 946 Automotive $ 430 $ 430 $ 1,131 $ 1,131 $ 597 $ 597 Banking $ 12,204 $ 12,204 $ 8,288 $ 8,288 $ 4,790 $ 4,790 Biotechnology $ 19,543 $ 19,543 $ 23,624 $ 23,624 $ 31,256 $ 31,256 Brokerage and Investment $ 3,484 $ 3,484 Management $ 5,812 $ 5,812 $ 2,431 $ 2,431 Business Services and $ 574 $ 574 Outsourcing $ 106 $ 106 $ 0 $ 0 Chemicals $ 4,185 $ 4,185 $ 7,081 $ 7,081 $ 7,955 $ 7,955 Computers $ 7,975 $ 7,975 $ 5,657 $ 5,657 $ 6,144 $ 6,144 Construction and Housing $ 973 $ 973 $ 653 $ 653 $ 240 $ 240 Consumer Industries $ 326 $ 326 $ 208 $ 208 $ 805 $ 805 Cyclical Industries $ 0 $ 0 $ 0 $ 0 $ 0 $ 0 Defense and Aerospace $ 650 $ 650 $ 824 $ 824 $ 1,329 $ 1,329 Developing Communications $ 3,734 $ 3,734 $ 3,177 $ 3,177 $ 6,980 $ 6,980 Electronics $ 10,707 $ 10,707 $ 10,633 $ 10,633 $ 10,101 $ 10,101 Energy $ 9,981 $ 9,981 $ 12,418 $ 12,418 $ 14,514 $ 14,514 Energy Service $ 8,292 $ 8,292 $ 9,358 $ 9,358 $ 11,289 $ 11,289 Environmental Services $ 9,071 $ 9,071 $ 7,574 $ 7,574 $ 6,428 $ 6,428 Financial Services $ 18,493 $ 18,493 $ 13,596 $ 13,596 $ 8,343 $ 8,343 Food and Agriculture $ 9,318 $ 9,318 $ 5,955 $ 5,955 $ 5,255 $ 5,255 Gold $ 22,792 $ 22,792 $ 19,578 $ 19,578 $ 27,084 $ 27,084 Health Care $ 84,087 $ 84,087 $ 58,978 $ 58,978 $ 56,845 $ 56,845 Home Finance $ 11,748 $ 11,748 $ 13,199 $ 13,199 $ 5,349 $ 5,349 Industrial Equipment $ 999 $ 999 $ 1,074 $ 1,074 $ 2,151 $ 2,151 Industrial Materials $ 478 $ 478 $ 1,065 $ 1,065 $ 2,207 $ 2,207 Insurance $ 1,211 $ 1,211 $ 1,491 $ 1,491 $ 786 $ 786 Leisure $ 15,030 $ 15,030 $ 10,919 $ 10,919 $ 13,069 $ 13,069 Medical Delivery $ 4,305 $ 4,305 $ 6,973 $ 6,973 $ 6,095 $ 6,095 Medical Equipment and Systems $ 470 $ 470 $ 2,642 $ 2,642 Multimedia $ 1,738 $ 1,738 $ 1,687 $ 1,687 $ 739 $ 739 Natural Gas $ 1,450 $ 1,450 $ 982 $ 982 $ 2,018 $ 2,018 Natural Resources $ 77 $ 77 $ 8 $ 8 $ 26 $ 26 Paper and Forest Products $ 1,145 $ 1,145 $ 737 $ 737 $ 2,161 $ 2,161 Retailing $ 4,022 $ 4,022 $ 2,870 $ 2,870 $ 2,757 $ 2,757 Software and Computer Services $ 6,139 $ 6,139 $ 4,793 $ 4,793 $ 5,910 $ 5,910 Technology $ 32,154 $ 32,154 $ 32,321 $ 32,321 $ 22,926 $ 22,926 Telecommunications $ 11,792 $ 11,792 $ 12,323 $ 12,323 $ 16,675 $ 16,675 Transportation $ 378 $ 378 $ 657 $ 657 $ 925 $ 925 Utilities Growth $ 15,873 $ 15,873 $ 21,580 $ 21,580 $ 22,382 $ 22,382 Money Market $ 62,882 $ 62,882 $ 67,970 $ 67,970 $ 95,881 $ 95,881
(dagger) Fiscal year ended February 29. * Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. FDC may compensate intermediaries (such as banks, broker-dealers and other service-providers) that satisfy certain criteria established from time to time by FDC relating to the level or type of services provided by the intermediary, the sale or expected sale of significant amounts of shares, or other factors. TRANSFER AND SERVICE AGENT AGREEMENTS Each fund has entered into a transfer agent agreement with FSC, an affiliate of FMR. Under the terms of the agreements, FSC performs transfer agency, dividend disbursing, and shareholder services for each fund. For providing transfer agency services, FSC receives an account fee and an asset-based fee each paid monthly with respect to each account in a fund. For retail accounts and certain institutional accounts, these fees are based on account size and fund type. For certain institutional retirement accounts, these fees are based on fund type. For certain other institutional retirement accounts, these fees are based on account type and fund type. The account fees are subject to increase based on postage rate changes. For the stock funds, the asset-based fees are subject to adjustment if the year-to-date total return of the S&P 500 exceeds a positive or negative 15%. FSC also collects small account fees from certain accounts with balances of less than $2,500. In addition, FSC collects a $7.50 exchange fee for each exchange out of a stock fund. In addition, FSC receives the pro rata portion of the transfer agency fees applicable to shareholder accounts in a qualified state tuition program (QSTP), as defined under the Small Business Job Protection Act of 1996, managed by FMR or an affiliate and in each Fidelity Freedom Fund and Fidelity Four-in-One Index Fund, funds of funds managed by an FMR affiliate, according to the percentage of the QSTP's, Freedom Fund's or Fidelity Four-in-One Index Fund's assets that is invested in a fund, subject to certain limitations in the case of Fidelity Four-in-One Index Fund. 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 existing shareholders, with the exception of proxy statements. Each fund has also entered into a service agent agreement with FSC . Under the terms of the agreements, FSC calculates the NAV and dividends for each fund, maintains each fund's portfolio and general accounting records, and administers each stock fund's securities lending program. For providing pricing and bookkeeping services, FSC receives a monthly fee based on each fund's average daily net assets throughout the month. The annual rates for pricing and bookkeeping services for money market funds are 0.0150% of the first $500 million of average net assets, 0.0075% of average net assets between $500 million and $10 billion, 0.0021% of average net assets between $10 billion and $25 billion, and 0.00075% of average net assets in excess of $25 billion. The fee, not including reimbursement for out-of-pocket expenses, is limited to a minimum of $40,000 per year. The annual rates for pricing and bookkeeping services for the stock funds are 0.0650% of the first $500 million of average net assets, 0.0400% of average net assets between $500 million and $3 billion, 0.0021% of average net assets between $3 billion and $25 billion, and 0.00075% of average net assets in excess of $25 billion. The fee, not including reimbursement for out-of-pocket expenses, is limited to a minimum of $60,000 per year. Pricing and bookkeeping fees, including reimbursement for out-of-pocket expenses, paid by the funds to FSC for the past three fiscal years are shown in the table below. Fund 2000 1999 1998 Air Transportation $ 60,909 $ 98,333 $ 73,865 Automotive $ 60,356 $ 67,412 $ 65,849 Banking $ 476,285 $ 777,110 $ 749,121 Biotechnology $ 729,882 $ 518,521 $ 538,574 Brokerage and Investment $ 348,207 $ 593,407 $ 404,906 Management Business Services and $ 60,419 $ 60,809 $ 5,000* Outsourcing Chemicals $ 60,369 $ 62,258 $ 83,611 Computers $ 1,330,357 $ 746,605 $ 578,646 Construction and Housing $ 60,339 $ 80,383 $ 60,209 Consumer Industries $ 61,077 $ 75,037 $ 61,506 Cyclical Industries $ 60,013 $ 60,050 $ 59,755** Defense and Aerospace $ 60,360 $ 68,157 $ 68,287 Developing Communications $ 825,400 $ 287,287 $ 239,077 Electronics $ 1,703,281 $ 967,497 $ 802,315 Energy $ 153,222 $ 135,861 $ 191,416 Energy Service $ 467,468 $ 545,287 $ 680,412 Environmental Services $ 60,320 $ 57,141 $ 60,348 Financial Services $ 370,696 $ 543,141 $ 465,691 Food and Agriculture $ 112,209 $ 220,104 $ 246,634 Gold $ 140,324 $ 199,332 $ 280,044 Health Care $ 1,567,581 $ 964,925 $ 800,697 Home Finance $ 359,558 $ 753,655 $ 791,859 Industrial Equipment $ 60,362 $ 60,400 $ 65,050 Industrial Materials $ 60,331 $ 60,350 $ 60,356 Insurance $ 61,084 $ 106,572 $ 114,165 Leisure $ 295,502 $ 279,815 $ 143,851 Medical Delivery $ 60,769 $ 150,958 $ 161,193 Medical Equipment and Systems $ 60,352 $ 50,606*** N/A Multimedia $ 155,406 $ 124,969 $ 68,383 Natural Gas $ 60,405 $ 60,991 $ 82,484 Natural Resources $ 60,165 $ 60,054 $ 59,758** Paper and Forest Products $ 60,328 $ 60,339 $ 60,338 Retailing $ 134,949 $ 268,863 $ 153,141 Software and Computer Services $ 559,415 $ 517,976 $ 436,026 Technology $ 1,325,662 $ 622,874 $ 524,451 Telecommunications $ 711,621 $ 625,067 $ 410,851 Transportation $ 60,333 $ 61,603 $ 64,993 Utilities Growth $ 419,990 $ 389,868 $ 274,740 Money Market $ 119,494 $ 120,261 $ 111,447 * Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. For administering each stock fund's securities lending program, FSC is paid based on the number and duration of individual securities loans. Payments made by the funds to FSC for securities lending for the past three fiscal years are shown in the table below. Fund 2000 1999 1998 Air Transportation $ 41 - - Automotive $ 8 - - Banking $ 191 $ 145 $ 2,730 Biotechnology $ 8,857 $ 18,000 $ 8,740 Brokerage and Investment $ 754 - - Management Business Services and $ 71 - -* Outsourcing Chemicals $ 7 $ 395 $ 4,265 Computers $ 12,176 $ 17,470 $ 11,975 Construction and Housing $ 2 $ 355 $ 298 Consumer Industries $ 107 - - Cyclical Industries $ 4 - -** Defense and Aerospace $ 42 - - Developing Communications $ 5,537 - - Electronics $ 7,949 $ 14,330 $ 31,045 Energy $ 435 $ 365 $ 575 Energy Service $ 530 $ 125 $ 2,025 Environmental Services $ 1 - - Financial Services $ 520 $ 275 $ 775 Food and Agriculture $ 360 $ 2,160 $ 5,870 Gold $ 115 $ 435 $ 1,255 Health Care $ 4,166 $ 13,910 $ 7,995 Home Finance $ 2 - - Industrial Equipment $ 37 - - Industrial Materials $ 36 - - Insurance $ 11 - - Leisure $ 274 - - Medical Delivery $ 37 $ 2,510 $ 1,275 Medical Equipment and Systems $ 49 -*** N/A Multimedia $ 495 - - Natural Gas $ 23 - - Natural Resources $ 15 - -** Paper and Forest Products $ 2 - - Retailing $ 135 $ 125 $ 2,570 Software and Computer Services $ 8,590 $ 7,605 $ 18,840 Technology $ 20,865 $ 11,065 $ 20,865 Telecommunications $ 14,479 $ 57,445 $ 10,585 Transportation $ 10 $ 625 $ 3,155 Utilities Growth $ 4,146 $ 6,915 $ 2,530 * Business Services and Outsourcing commenced operations on February 4, 1998. ** Cyclical Industries and Natural Resources commenced operations on March 3, 1997. *** Medical Equipment and Systems commenced operations on April 28, 1998. DESCRIPTION OF THE TRUST TRUST ORGANIZATION. Fidelity Select Air Transportation Portfolio, Automotive Portfolio, Banking Portfolio, Biotechnology Portfolio, Brokerage and Investment Management Portfolio, Business Services and Outsourcing Portfolio, Chemicals Portfolio, Computers Portfolio, Construction and Housing Portfolio, Consumer Industries Portfolio, Cyclical Industries 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, Gold Portfolio, Health Care Portfolio, Home Finance Portfolio, Industrial Equipment Portfolio, Industrial Materials Portfolio, Insurance Portfolio, Leisure Portfolio, Medical Delivery Portfolio, Medical Equipment and Systems Portfolio, Multimedia Portfolio, Natural Gas Portfolio, Natural Resources Portfolio, Paper and Forest Products Portfolio, Retailing Portfolio, Software and Computer Services Portfolio, Technology Portfolio, Telecommunications Portfolio, Transportation Portfolio, Utilities Growth Portfolio, and Money Market Portfolio are funds of Fidelity Select Portfolios, an open-end management investment company organized as a Massachusetts business trust on November 20, 1980. On August 2, 1999, Banking Portfolio changed its name from Regional Banks Portfolio to Banking Portfolio. On June 1, 1998, Gold Portfolio changed its name from American Gold Portfolio to Gold Portfolio. On July 18, 1996, Consumer Industries Portfolio changed its name from Consumer Products Portfolio to Consumer Industries Portfolio. Currently, there are 39 funds in Fidelity Select Portfolios: Air Transportation Portfolio, Automotive Portfolio, Banking Portfolio, Biotechnology Portfolio, Brokerage and Investment Management Portfolio, Business Services and Outsourcing Portfolio, Chemicals Portfolio, Computers Portfolio, Construction and Housing Portfolio, Consumer Industries Portfolio, Cyclical Industries 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, Gold Portfolio, Health Care Portfolio, Home Finance Portfolio, Industrial Equipment Portfolio, Industrial Materials Portfolio, Insurance Portfolio, Leisure Portfolio, Medical Delivery Portfolio, Medical Equipment and Systems Portfolio, Multimedia Portfolio, Natural Gas Portfolio, Natural Resources Portfolio, Paper and Forest Products Portfolio, Retailing Portfolio, Software and Computer Services Portfolio, Technology Portfolio, Telecommunications Portfolio, Transportation Portfolio, Utilities Growth Portfolio, and Money Market Portfolio. The Trustees are permitted to create additional funds in the trust and to create additional classes of the funds. 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 to the rights of creditors, are allocated to such fund, and constitute the underlying assets of such fund. The underlying assets of each fund in the trust shall be charged with the liabilities and expenses attributable to such fund. Any general expenses of the trust shall be allocated between or among any one or more of the funds. SHAREHOLDER LIABILITY. The trust is an entity commonly known as a "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 contains an express disclaimer of shareholder liability for the debts, liabilities, obligations, and expenses of the trust or fund. 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 relating to the trust or to a fund shall include a provision limiting the obligations created thereby to the trust or to one or more funds and its or their assets. The Declaration of Trust further provides that shareholders of a fund shall not have a claim on or right to any assets belonging to any other fund. The Declaration of Trust provides for indemnification out of each fund's property of any shareholder or former shareholder held personally liable for the obligations of the fund solely by reason of his or her being or having been a shareholder and not because of his or her acts or omissions or for some other reason. 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 judgment thereon. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which a 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. VOTING RIGHTS. Each fund's capital consists of shares of beneficial interest. As a shareholder, you are entitled to one vote for each dollar of net asset value you own. The voting rights of shareholders can be changed only by a shareholder vote. Shares may be voted in the aggregate, by fund, and by class. The shares have no preemptive or conversion rights. Shares are fully paid and nonassessable, except as set forth under the heading "Shareholder Liability" above. The trust or a fund may be terminated upon the sale of its assets to, or merger with, another open-end management investment company or series thereof, or upon liquidation and distribution of its assets. Generally, the merger of the trust or a fund with another operating mutual fund or the sale of substantially all of the assets of the trust or a fund to another operating mutual fund requires approval by a vote of shareholders of the trust or the fund. The Trustees may, however, reorganize or terminate the trust or a fund without prior shareholder approval. In the event of the dissolution or liquidation of the trust, shareholders of each of its funds are entitled to receive the underlying assets of such fund available for distribution. In the event of the dissolution or liquidation of a fund, shareholders of that fund are entitled to receive the underlying assets of the fund available for distribution. CUSTODIANS. Brown Brothers Harriman & Co., 40 Water Street, Boston, Massachusetts, is custodian of the assets of the stock funds. The Bank of New York, 110 Washington Street, New York, New York, is custodian of the assets of the money market fund. Each custodian is responsible for the safekeeping of a fund's assets and the appointment of any subcustodian banks and clearing agencies. The Chase Manhattan Bank, headquartered in New York, also may serve as a special purpose custodian of certain assets in connection with repurchase agreement transactions. For the stock funds, The Bank of New York, headquartered in New York, also may serve as a special purpose custodian of certain assets in connection with repurchase agreement transactions. FMR, its officers and directors, its affiliated companies, and members of the Board of Trustees may, from time to time, conduct transactions with various banks, including banks serving as custodians for certain funds advised by FMR. The Boston branch of the stock 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. PricewaterhouseCoopers LLP, 160 Federal Street, Boston, Massachusetts, serves as independent accountant for each fund. The auditor examines financial statements for the funds and provides other audit, tax, and related services. FINANCIAL STATEMENTS Each fund's financial statements and financial highlights for the fiscal year ended February 29, 2000, and report of the auditor, are included in the fund's annual report and are incorporated herein by reference. APPENDIX Fidelity, Select Portfolios, Fidelity Investments & (Pyramid) Design, Fidelity Focus, Fidelity Investments, and Magellan are registered trademarks of FMR Corp. Portfolio Advisory Services is a service mark of FMR Corp. The third party marks appearing above are the marks of their respective owners. -----END PRIVACY-ENHANCED MESSAGE-----